New base home edition by khaled al awadi 0609

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 1
NewBase 05 June 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
UAE: Dubai on course for another pricing record at Mohammed
bin Rashid Al Maktoum Solar Park
The national - LeAnne Graves
Dubai is setting out to achieve another solar pricing record at Mohammed bin Rashid Al Maktoum
Solar Park. Saeed Al Tayer, the managing director and chief executive of Dubai Electricity
and Water Authority (Dewa), said that the utility would build the largest
concentrated solar power (CSP) plant in the world.
The utility has released a tender for international CSP advisory companies
for the first 200 megawatt phase out of a total 1 gigawatt.
The solar park will have a total capacity of 5GW by 2030 and this new phase will be based on
CSP tower technology, said Mr Al Tayer. “There will be a thermal storage capability that will store
energy for up to 12 hours on a daily basis," he said.
The previous phases of the solar park have all used solar photovoltaic (PV) technology. Phase
two set a world record for low bidding price and the 800MW third phase has already had further
record-breaking bids submitted.
Switching from PV
technology to CSP creates
another opening for Dubai
to lead the solar world and
expand its local solar
manufacturing sector.
While the cost of solar PV
panels has dropped by 75
per cent in the five years to
2014 with more reductions
expected, CSP remains a
more expensive choice.
Unlike PV, the cheaper
technology, CSP has
storage capabilities, which
means energy can be used
at night. Mr Al Tayer said
he expects that Dubai will
achieve CSP prices at
about 8 US cents per

kilowatt hour.
The lowest bid so far submitted in the region for CSP is for Morocco’s Noor II and III projects at
15.67 cents per kWh, more than five times higher than the lowest submitted price for PV in Dubai.
The UAE already has an operating CSP project in Abu Dhabi. The 100MW solar plant, led by
Masdar, Spain’s Abengoa and Total of France, has been in operation for three years.
Frank Wouters, the former director of Masdar Clean Energy and ex-chairman of Shams Power,
said people have been focused on price, which leads them to choose solar PV.
“It’s a bit of a chicken and egg scenario: if you don’t do things, you can’t get the cost down," he
said, adding that there are few CSP projects globally.
Dewa’s step towards CSP offers a chance to scale up local manufacturing. Mr Wouters said that
60 to 80 per cent of CSP components can be sourced locally. “It’s easier to achieve a very high
share of local content. It’s difficult to make the receiving tubes and parabolic mirrors, but the
central tower, that’s all flat mirrors that are being used in the automobile industry. The rest is steel
and cement," he said.
The UAE has a favourable climate for solar investment including land and stellar credit ratings. As
a result more industry records could soon be broken, said Mr Wouters. .
NOORo II and NOORo III Concentrated Solar Power Plants in Morocco

Opec keeps oil output policy unchanged, no ceiling after meeting
in Vienna… The national- Anthony McAuley
The oil ministers from Opec meeting in Vienna for their regular bi-annual session decided to go
with the status quo, a sign of their confidence that policy is working, but also of the fragility of the
oil market’s recent recovery.
The lack of agreement over an overall output ceiling – with the previous one having been ignored
for some time – or even nominal country quotas, is a reflection also of the wrangling between
Opec’s effective leader, Saudi Arabia, and its political and oil market rival Iran.
But the overall sense from ministers at this week’s gathering in Vienna was that the relatively
laissez faire policy of the last year-and-a-half was showing signs of working.
That included Saudi Arabia’s petroleum and mineral resources minister, Khalid Al Falih, who was
named to the post last month to replace long-serving Ali Al Naimi, as part of the sweeping
modernisation of oil (and economic) policy being pushed through by the deputy crown prince
Mohammed bin Salman.
“As we have seen, demand growth was robust in 2015, and the first quarter of 2016 has also been
healthy," Mr Al Falih said yesterday.
“On the supply side, we have seen the pace of growth of high-cost oil declining. In fact, in my
view, as the positive effect of healthy industry investments of the past decade wanes with the
passage of time, the supply of expensive oil will be impacted even more," Mr Al Falih, said in an
interview with Argus, an oil market publication.
“The net result of the demand growth and the significant fall in expansion of high-cost oil is the
start of rebalancing," he concluded.
The view was echoed by Suhail Al Mazrouei, the UAE’s Minister of Energy, and other close
Saudi allies. The latest data show that oil
production in the US is down sharply since last
year, although the rate of decline has slowed.
US data showed this week that domestic output
was more than half a million barrels per day
lower than last year, at just above 9.1 million
bpd.
Some analysts see signs that the formerly
booming shale oil sector in the US will undergo
a further sharp contraction. More shale
companies have filed for bankruptcy protection
so far this year than in the whole of last year.
“Whilst filing for [bankruptcy protection] may not immediately result in declining production, it has
undoubtedly shaken confidence in the system," said Amrita Sen at Energy Aspects, who adds that
those financing the US shale industry have said they want higher prices for longer before they’ll
reinvest there, which alleviates the worry some had that an uptick in oil prices would only be met
by a renewed flood of US shale supply.

But what is more certain is that there will be more supply from Iran in the coming months. Indeed,
Iran’s determination not to be part of any effort to put a ceiling or country quotas on Opec
members’ production ensured there would be no deal.
Iran’s oil minister said yesterday that since the deal with western powers in January, production
has risen back to near the 4 million bpd level which prevailed before nuclear-related sanctions
were imposed in 2012.
The Barclays oil analyst Miswin Mahesh said the rivalry between Saudi Arabia and Iran and their
battle for market share – mainly in Asia – will be a “recurring theme" this year that he forecasts will
mean lower prices in the fourth quarter before broader market forces continue the recovery next
year.
Barclays is expecting average prices for benchmark North Sea Brent just above US$40 in the
fourth quarter, but averaging $60 per barrel next year.
Where does that leave Opec’s role?
“It’s become an existential question for the cartel," said Mr Mahesh. “But even as disorganised as
this meeting has been, they are getting their market share back but at a cost in terms of lost
revenues."
Saudi Falih charm offensive slowly wins back OPEC for Saudis
Reuters-DMITRY ZHDANNIKOV, RANIA EL GAMAL AND REEM

Saudi Arabia's Energy Minister Khalid al-Falih (C) arrives for a meeting of OPEC oil ministers in
Vienna, Austria, June 2, 2016. Russian oil billionaire Vagit Alekperov isn't easily swayed, but
Saudi Arabia's new Energy Minister Khalid al-Falih achieved it this week.
Intense diplomacy by the soft-spoken Falih at his first OPEC meeting - with his speech peppered
by words such as "gentle approach", "no shocks" and "consensus" - has persuaded Alekperov
that OPEC is more alive than dead.
"The fact that OPEC agreed on its new management shows they want to regain their coordinating
role. The cartel will perform market management again," Alekperov, chief executive of Russian
energy firm Lukoil, said after meeting Falih and Iranian Oil Minister Bijan Zanganeh separately in
Vienna.
On Thursday, OPEC could not agree to set a clear oil-output target as Iran refused to limit its own
production. But the meeting was relatively peaceful and free of the usual clashes between
political rivals Saudi Arabia and Iran, with Falih promising not to flood the market and to listen to
Tehran.
In a rare compromise, OPEC also decided unanimously to appoint Nigeria's Mohammed Barkindo
as its new secretary-general after years of friction over the issue. Oil prices stood flat at $50 a
barrel on Friday, up 80 percent from their January lows.
Falih, who in April succeeded veteran Ali al-Naimi, was the first OPEC minister to arrive in Vienna.
He met most fellow colleagues on the sidelines, spent several hours with independent OPEC
analysts and held a long news conference with reporters.
"If you want to call it (OPEC) a talking shop - I have no problem with that. But I think it's going to
do a lot more than talking. We are going to do coordination and cooperation ... to achieve market
objectives," Falih said on Thursday.
DRIVERLESS CAR
The nature of Thursday's meeting surprised many OPEC watchers, who have grown used to
acrimonious gatherings.
Falih's ultimate boss, Saudi Deputy Crown Prince Mohammad bin Salman, effectively scuppered
plans to clinch a global production freeze in the Qatari capital of Doha in April.
Mohammed Barkindo, OPEC Secretary-General

Prince Mohammad said Riyadh would not agree to the deal, which would also have involved non-
OPEC Russia, if Iran didn't join in despite Tehran insisting it wants to regain market share after the
lifting of international sanctions earlier this year.
"After Doha, oil markets were beginning to look like a driverless car. That needed to change," said
a source familiar with Saudi thinking.
A non-Gulf OPEC source said Riyadh realized it needed OPEC unity because the group's fight for
market share against higher-cost producers, such as U.S. shale, was taking longer than expected
when formulated in 2014.
"The Saudis trashed OPEC in Doha. But they realized they don't want to throw away decades of
OPEC history and decided to be more cooperative," said Gary Ross, founder of U.S.-based Pira
consultancy, who came to Vienna together with other OPEC watchers and analysts for meetings.
"The Saudis definitely decided to change tack after Doha as they were concerned that people
were doubting the viability of OPEC. I think this softer approach will last," said Amrita Sen, who
also came to Vienna.
Falih acknowledges that Riyadh realized it needs OPEC.
"The markets can ultimately balance themselves but as we have seen, when we rely on markets
alone it is extremely painful for everybody," he said on Thursday.
"I think managing in the traditional way that we have tried in the past may never come again ... We
will not go with setting a price target for OPEC ... But (we should be) coordinating strategies and
trying to understand what each of us can and cannot do."

Qatar:Energy, trade on agenda as India’s Modi visits Qatar
Gulf news
India will be looking to strengthen trade and energy ties with Qatar as Indian Prime Minister
Narendra Modi begins two day visit to the Gulf nation starting on Saturday. This would be Modi’s
fourth visit to a Gulf country in the last one year after his historic trips to the UAE, Saudi Arabia
and to Iran last month.
During the visit the Indian PM will hold discussions with the top leadership of the country in order
to boost trade and investment between the two countries. Modi will also interact with Indian
community members and workers involved in the redevelopment of the historical downtown area
in Doha.
“Qatar is important and it can be an important economic partners for us. It has a large sovereign
wealth fund and a lot of Gulf countries are looking for investment opportunities in India,” said
Indian Foreign Secretary S Jaishankar in a press conference in New Delhi about the visit.
The bilateral trade between the two countries stands at $10 billion and Qatar. More than 630,000
Indians live and work in Qatar which is hosting the football world cup in 2022.
“Modi has been successful in signing agreements for increased investment from Gulf States. As
we saw with Saudi Arabia, expansion of trade and investment is tied to the goal of driving forward
strategic engagement,” said Dr Kadira Pethiyagoda who was a Visiting Fellow in Asia-Middle East
Relations at the Brookings Institution told Gulf News. is the largest supplier of LNG to India
meeting 65 per cent of the country’s natural gas requirements
He said the visit will cover investment and trade, but also strategic and security issues, building on
recent visits by Indian naval vessels.

“Modi seeks investment in India’s infrastructure. India is also keen to strengthen strategic ties with
Gulf States and vice versa. Delhi sees the Gulf States as within its geographic sphere of strategic
interest in the Western India Ocean,” he added.
During his visit to the UAE last year
in August, both the countries set up
a UAE-India Infrastructure
Investment Fund with a target of
$75 billion (Dh275 billion) to
expand India’s network of railways,
ports, roads, airports and industrial
corridors.
The two countries also planned to
increase trade by 60 per cent in the
next five years.
Gary Dugan, Chief Investment
Officer at Emirates NBD said Modi
could be looking for strategic
alliances where Qatari investment
could be used in infrastructure
sector specially in the downstream side of the energy sector in refining and distribution.
“Qatar has got energy and India is
energy short. Qatar has got energy
exploitation technology which again is
something Modi would want to do deal
on.”
“Although Qatar is a modest country in
terms of Indian products can be sold to
but he would try to open as many of
those avenues as possible in terms of
doing trade deals.”
“I think the other thing is Qatar has got
one of the richest sovereign wealth funds
and we know these sovereign wealth
funds continue to diversify internationally
with low oil and gas prices and are
looking for opportunities abroad.”
He added that India’s energy needs re
growing faster than any other nation
because of the economic development
which has become more energy
intensive and the visit to Gulf countries
would bolster energy ties.

GCC spending on gas forecast to grow 4% over the next 10 years
Saudi gazette – Bjorn Ewers
Over the past two years, the slump in oil prices has caused a ripple effect along the entire oil &
gas value chain. The world is now entering a period of even more volatile oil prices, and, in the
midst of these unsettling times, the Oilfield Services and Equipment (OFSE) industry has taken a
particularly strong hit.
This is largely due to the fact that a slew of major oil producers have planned, introduced, and set
in motion cost-cutting initiatives, Bjorn Ewers, Partner & Managing Director at BCG Middle East,
said recently in a recent industry commentary.
The OFSE industry is a very important part of the GCC economy – with a size of about $65 billion
and almost 7 percent of the global market. Within the GCC, Saudi Arabia accounts for 40 percent
of the market and is expected to grow the fastest – by about 8 percent p.a. between 2017-2020.
Globally, oil companies are making significant cuts to capex: between 10-30 percent of the capex
budget has been cut by IOCs and NOCs. From their perspective, oil companies are expecting
their service providers to react and are renegotiating contracts with OFSE companies in order to
meet their new targets. As part of their efforts to reduce costs and elevate efficiency, IOCs have
also radically shifted their strategy from volume to value and this has had a huge impact on the
bottom line of OFSE players.
In response to this, OFSE players have reacted accordingly and have significantly reduced their
cost base including their workforce, Ewers pointed out.
For example, Schlumberger has reduced its global workforce by 26 percent since November
2014. Moreover, in recent years, the oil & gas industry’s returns have eroded amid low and stable
prices – and this in turn has made investors skeptical of the industry’s ability to create value.

Looking ahead, the offshore industry will continue to serve as a key source of production growth
globally: in fact, 62 percent of new global oil production from now until 2020 will come from
offshore – and this will generate an economic value of $65 billion. Given this context, OFSE
companies will have to reorganize their activities and focus on serving this segment of the
industry.
Interestingly, the forces currently shaping the GCC’s OFSE landscape are different from those
affecting the global OFSE industry. Across the GCC, energy players are increasingly applying
improved and enhanced oil recovery techniques, designed to help them extract the maximum
amount of oil from mature fields. OFSE companies are already familiar with this type of activity in
other parts of the world and now – more than ever – they need to bring such expertise to the
GCC.
Ewers noted that naturally, today, this is the largest driver of spending for GCC NOCs looking to
offset the production decline in mature fields.
It is no surprise that high decline rates are proving to be problematic for the region’s oil producers.
For example, the Ghawar oil field in Saudi Arabia, the world’s largest conventional oil field, is
already seeing a decline in production – the average production between 2011-2015 was 4.5
percent lower than the average production between 2006-2010 and 3.5 percent lower than the
average production between 2001-2005, Ewers said.

GCC countries are determined to maintain their production capacity – so as to not lose market
share. In 2015, mature fields accounted for about 36 percent of oil companies’ total external
spending.
When it comes to gas production, it is now becoming as vital as crude production. The reality is,
government gas price subsidies in several GCC countries have sparked a rise in demand; and so,
at present, some GCC countries like Kuwait, Oman and UAE are actually importing gas.
Remarkably, an increasingly large amount of oil produced in the GCC is directly used for domestic
consumptions. Overall, in the GCC, the total spend on gas is expected to grow by 4 percent over
the next 10 years – led by Kuwait and Qatar with 19 percent and 7 percent, respectively.
Across the GCC, the growth of unconventional oil is also climbing to the top of governments’
agendas. This is driven by three main factors. First, unconventional oil sources can help GCC
countries meet their capacity target. For example, by also producing heavy oil, Kuwait aims to
increase its capacity to 4mbopd by 2020.
Secondly, unconventional oil production can help address local consumption needs. For instance,
following the completion of the Khazzan Tight gas field project, Oman set out to extract around
1bcf of tight gas per day – to meet its growing demand for energy.
Lastly, developing the skill set needed for unconventional oil production can help NOCs stay on
top of technological advancements in oil & gas. Based on this, GCC E&P spending on
unconventional oil is set to grow about 33 percent until 2017 (led by heavy oil). On their part,
OFSE companies can also play a pivotal role in helping NOCs and local governments meet their
national agenda goals – by providing the local workforce with the training necessary for the proper
implementation of these new technologies.
With all this in mind, it is clear that the region’s OFSE industry is undergoing a massive
transformation – one that has been long in the making. To ensure success in such challenging
times, OFSE players must now more than ever carefully and closely monitor regional GCC trends
– and adapt their operations accordingly, Ewers added.

Nigerian militants say aim is zero oil output after three attacks
Reuters
The Niger Delta Avengers militant group has claimed responsibility for three new attacks on
Nigeria's oil infrastructure, promising to cut production to zero.
The attacks are the latest in a Delta region conflict that a major local youth group said is "rapidly
deteriorating and getting out of control", putting intense pressure on Nigeria's stretched finances.
The Nigerian Air Force, in a statement issued late on Friday, said it had deployed additional
"fighter aircraft, helicopter gunship and surveillance aircraft" in troubled oil-producing areas to
conduct "offensive air operations and intelligence gathering".
The army has moved reinforcements to the swamps in the last few weeks.
Early on Friday, the Niger Delta Avengers group said via its Twitter account it had blown up a
pipeline in Nigeria's Bayelsa state owned by Italy's ENI, hours after attacks on another ENI
pipeline as well as one belonging to Shell Petroleum Development Company of Nigeria Ltd
(SPDC).
"At about 3:30am our (@NDAvengers) strike team blew up the Brass to Tebidaba Crude oil line in
Bayelsa," the group said on a Twitter feed it uses to claim attacks.
Shell confirmed its 250,000 barrels a day Forcados pipeline had been hit again and was leaking.
"We have ... mobilized appropriate oil spill response measures," SPDC said in a statement.
The pipe had been shut in February after a seawater attack but a new strike might complicate
three-month long repairs, for which the firm has brought in experts from abroad. Force majeur has
been in place for Forcados crude since then.
The Niger Delta Avengers say oil firms are responsible for pollution and say the poor swampland
region fails to reap any benefit from its reserves.

It said its attacks had brought Nigeria's oil production to just 800,000 barrels per day (bpd), from 2
million bpd, without killing anyone, though they hit infrastructure feeding crude grades already
under force majeure.
The ENI pipeline is used to transport Brass River crude. The group also hit ENI's Ogboinbiri-
Tebidaba and Clough Creek-Tebidaba pipelines in Bayelsa and warned ENI not to start repairs or
"we will make you regrets it". ENI did not respond to a request for comment.
LOUD SOUND
Ayiri Appah, a resident of Ogboinbiri, where the ENI pipelines are located, said he "heard a loud
sound" from the area between 2 and 4 am local time.
Three grades of Nigeria's oil - Forcados, Brass River and Bonny Light - are under force majeure,
while Exxon Mobil lifted force majeure on Qua Iboe, the country's largest export stream, on Friday.
Nigeria's oil minister said on Thursday that output was 1.6 million bpd. Even if the most recent
attacks, which also included facilities belonging to Chevron under its Escravos grade, took out all
exports of the oil linked to them, June production would remain near 1.2 million bpd.
Experts said the violence showed little sign of abating, and would keep pressure on the Nigeria's
oil production and finances. President Muhammadu Buhari, a Muslim from the north, on Thursday
canceled what would have been his first visit to the Delta region since taking office.
The Avengers have accused Buhari of ignoring local problems by having never visited the
Christian region in the south. The Ijaw Youth Council, which represents one of the largest ethnic
groups, called on Buhari to "urgently and personally take charge ... to return peace and normalcy
to the region."

'Niger Delta Avengers': Who they are, and what they want
CNBC - Tom DiChristopher | @tdichristopher
After seven years of relative peace, one of the world's most oil-rich regions is once again under
siege by militants. And though Nigeria is well-acquainted with violence on its southern shores, the
group behind a new wave of attacks — the Niger Delta Avengers — is shrouded in mystery and
sabotaging one of the world's biggest oil producers.
The attacks present a serious challenge for President Muhammadu Buhari, who entered office last
year in the midst of a global oil price downturn that has plunged Nigeria into economic crisis and
stoked runaway inflation. Now, assaults by the Avengers have helped send the country's crude
output to its lowest level in decades.
Nigeria is home to Africa's largest economy and one of the world's biggest populations. Before this
year's supply disruptions, the OPEC member was also the continent's top crude producer. The oil
industry accounts for about 70 percent of government revenue.
The Niger Delta Avengers are in the business of destroying oil infrastructure — working in teams,
carrying small arms and explosives, blowing up pipelines and sabotaging facilities — taking
advantage of the Delta's complex, creek-filled terrain to stay one step ahead of the Nigerian
soldiers chasing them.
They're driven by economic and environmental grievances, and until those issues are addressed,
the Delta will remain in a cycle of sabotage, experts told CNBC. And Nigeria's oil output will
remain under pressure.
'Very effective'
The Avengers claim on their website to be young, educated and well-traveled. They say they are
better armed and more civilized than past militants. One thing's for sure: They are making an
impact.
Nigerian Oil Minister Emmanuel Ibe Kachikwu this week said the country's oil production has
fallen by 800,000 barrels per day — to 1.4 million barrels per day — due to attacks on the nation's
infrastructure, local news reported, many or perhaps most of them at the hands of the Avengers.

"We don't see this being a huge group, but at the same time, they do seem very effective," said
Matthew Bey, energy and technology analyst at geopolitical research firm Stratfor.
On Wednesday, Italian energy giant Eni confirmed that one of its Nigerian pipelines was
sabotaged, UPI reported. The following day,Exxon Mobil said operations at its Qua Iboe oil
terminal — Nigeria's largest — had been disrupted by criminal activity. No one has claimed
responsibility for those incidents, but the Avengers are high on the suspect list.
The Avengers did claim responsibility for a recent attack on Chevron's Okan offshore
platform, Shell's Forcados oil pipeline and other infrastructure. In recent weeks, Shell and Chevron
have reportedly evacuated staff.
Chevron declined to comment on evacuations or attacks on installations claimed by the Avengers
beyond the Okan platform. Shell said it did not wish to comment on details of its response to
recent attacks, adding that its operations are continuing.
The Avengers demand greater ownership of oil
resources for the people who live in crude-producing
areas. They want environmental repair and
compensation for damages inflicted by oil producers.
And they want continued government funding for
an amnesty program that is largely credited with halting
the last round of Delta violence, which mostly ended in
2009. Experts on the region say it's unclear if The
Delta Avengers comprise militants who were active
during the last period of unrest — an umbrella group
called MEND that operated from 2006 to 2009 — or if they're an entirely new organization.
The Avengers criticize the older groups of militants for kidnapping people, killing Nigerian soldiers
and allegedly enriching themselves after the 2009 amnesty program. The older alliance of
militants had a diverse group of leaders who contracted out attacks on oil infrastructure. There is
so far scant evidence that the Avengers have that same scale, said Stratfor's Bey.
But Bey said the Avengers appear to be attempting to generate solidarity with other parts of the
Niger Delta that have historical grievances with oil companies. They claim their members come
from different ethnic groups and regions, and have evoked the plight of the Ogoni, whose lands
have been ravaged by crude pollution.
"Going forward, Buhari's biggest challenge is making sure this doesn't spread and become a
greater movement," Bey said. This week, another group calling itself the Red Egbesu Water Lions
vowed to join the fight if some of the Avengers' demands were not met within a week, local news
reported.
If the attacks come at the worst possible time for Nigeria, they were also to be expected. Experts
say the amnesty deal was always a short-term solution.
Under the program, the government handed out multimillion-dollar contracts to the top leaders of
the last round of militants, paying them to guard oil infrastructure. The rank and file were
compensated with stipends and job training. "Essentially, the amnesty was a massive payoff
system," said former U.S. Ambassador to Nigeria John Campbell.

"The leaders of MEND, of the insurrection, were paid off essentially with government contracts.
The rank and file were supposed to be paid off with vocational training. Of course, there aren't any
jobs in the area," he told CNBC.
Buhari has extended the program through 2017, but he's also reduced payouts, circumvented the
former militant leaders who previously distributed them and stopped funding security
contracts.Bearing in mind these changes, Ambassador Campbell said the Avengers could be
acting on a "cluster of motivations" that are both selfish and selfless.
The attacks are likely born out of resentment over amnesty payments drying up and an anti-
corruption campaign that has disrupted traditional patronage, as well as concern about
environmental damage and the long-held belief the Delta region does not get an equitable share
of oil revenues, he said.
The structure of the amnesty also offers clues about the Avengers' makeup. Midlevel
commanders were left without opportunities that matched their expectations and sense of their
own standing, said Akin Iwilade, a research student at Oxford University who studies why
Nigerians join gangs and has interacted with former militants.
"Many of these guys, they got into the amnesty, but they didn't get half of what they expected," he
said, though he cautioned there is no hard evidence to suggest the Avengers are comprised of
former midlevel commanders.
While the amnesty failed to address broader concerns about development and political inclusion,
Iwilade said it has improved the lives of former low-level militants by allowing fugitives to return to
civilian life and reducing violence in the Delta. And while training has failed to lead to jobs in many
cases, it has allowed at least some people to start businesses and families, he said.
Those benefits could limit the appeal among former militants of returning to the Delta's networks of
creeks to carry out attacks. Still, the Nigerian government runs the risk of exacerbating the
problem if it takes a hard line, said Olanshile Akintola, another research student at Oxford who
also interacts with Nigerian youth, told CNBC in a separate interview.
"What we're really concerned about is Buhari's response to the NDA has been one of serious
threats, which historically hasn't worked. It's just made things worse," he said.
'Get bought off'
Buhari has vowed to stamp out the Avengers, but the military has found it difficult in the past to
hunt down militants in the Delta's maze of creeks. Nigeria's armed forces are also stretched thin
as they wage a simultaneous, separate campaign against Muslim terror group Boko Haram in the
north, and grapples with ethnic land conflicts in Nigeria's middle belt.
Both Iwilade and Akintola said the ultimate solution will require Buhari to start a dialogue with the
Delta region and address the root causes of unrest. The key is to show a greater commitment to a
more-inclusive form of government that reduces marginalization and assures Buhari's anti-
corruption campaign does not solely target the opposition party, Iwilade said.
Until then, the amnesty has given young, disenfranchised men a simple model, according to
Ambassador Campbell. "If you have nothing to do, go out, blow up enough and you'll get bought
off," he said.

U.S. Shale Drillers Restart Oil Rigs as Market Improves
Bloomberg - David Wethe @davidwethe
Oil explorers put drilling rigs back to work in U.S. fields for only the second time this year as
supply and demand come closer into balance.
Rigs targeting crude in the U.S. rose by 9 to 325 this week, Baker Hughes Inc. said Friday.
Explorers have idled more than 1,000 oil rigs since the start of last year. Natural gas rigs were
trimmed by 5 to 82 this week, bringing the total for oil and gas up by 4 to 408.
Oil prices extended declines immediately after the release of the Baker Hughes report. Futures in
New York have climbed about 85 percent from the lowest level since 2003 earlier this year on
signs the global glut is easing.
"The uptick for rigs might have prompted some people to think that there’s a supply side reaction
to $50 oil," said Tim Evans, an energy analyst at Citi Futures Perspective in New York. "This is
just one week’s data. This doesn’t change the fact that the rig count is down a great deal or
represent the beginning of a recovery."
West Texas Intermediate oil for July delivery fell 55 cents to settle at $48.62 a barrel on the New
York Mercantile Exchange. Prices climbed as much as 24 cents, or 0.5 percent, earlier in the
session.
The worst downturn in decades led oil producers to scrap projects and cut spending on drilling,
signaling that supply and demand are getting close to being in balance. Disruptions in Canada
and Nigeria took 50 million barrels out of the market last month, Geneva-based trading house
Mercuria Energy Group Ltd. estimated.

Faster Rebalancing
“The rebalancing is happening a bit faster than anticipated because of the disruptions,” Mercuria
Chief Executive Officer Marco Dunand said in an interview. “Demand is also stronger than
expected” in countries from India to the U.S., he said.
The International Energy Agency forecasts oil demand will increase this year by 1.2 million barrels
a day, while Dunand said growth is likely to top 1.5 million, perhaps rising as high as 1.8 million.
America’s oil drillers have been idling rigs since October 2014 as the world’s largest crude
suppliers battle for market share. Despite the cutbacks, U.S. production has only recently begun
to falter as new techniques that increase efficiency keep the oil flowing.
U.S. output declined for a 12th week and crude stockpiles dropped in the week ended May 27,
according to a report from the Energy Information Administration.

NewBase 05 June - 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil closes with Brent at 49.74 & WTI=84.62 on US rig count rise,
economy concerns .. Reuters + NewBase
U.S. oil prices tumbled more than 1 percent on Friday, after weekly data showed U.S. drillers
added rigs for only the second time this year.
Drillers added nine oil rigs in the week to June 3, Baker Hughes said. The closely followed report
rekindled fears that U.S. shale drillers would turn the spigots back on as prices flirted with $50 a
barrel.
Prices had already dipped in early trade on worries about the U.S. economy, but losses were
limited by a weakening dollar, which makes oil less expensive for buyers using other currencies.
The Baker Hughes report sent prices sharply lower.
"The increase in the rig count as prices near the $50/bbl range is clearly indicative of the elasticity
of U.S. production and speaks to the tremendous efficiency gains reaped by the U.S. producer
community over recent years," said Michael Tran, director of energy strategy at RBC Capital
Markets in New York.
Oil traders view falling U.S. output as key to reducing a global glut of crude that has pressured
prices during a steep two-year slump.
Brent crude futures fell 30 cents to $49.74 per barrel, but were still almost double January lows
and on track for an eighth weekly gain in nine weeks.
U.S. West Texas Intermediate (WTI) crude futures settled 55 cents lower, or 1.1 percent, at
$48.62 a barrel.
Oil price special
coverage

Oil prices have rallied from this winter's lows due largely to supply disruptions, particularly in
Nigeria, Venezuela, Libya and Canada. On Friday, militants in the restive Niger Delta region that
produces more than half of Nigeria's oil claimed three new attacks on oil infrastructure, promising
to bring the country's oil production to "zero."
Still, news that ExxonMobil lifted its force majeure on exports of Nigeria's Qua Iboe crude oil,
looked likely to bring barrels back to the market.
"If you're starting to see some of those barrels coming back, well, that's happening ahead of
schedule, in my opinion," Bob Yawger, director of the futures division at Mizuho in New York.
The tone of the Organization of the Petroleum Exporting Countries(OPEC) meeting in Vienna on
Thursday supported prices "from the perspective that none of the major players (except Iran)
indicated that they would be further flooding the market with oil anytime soon," said Energy
Management Institute analyst Dominick Chirichella.
Weaker-than-expected U.S. non-farm payroll data supported oil by sending the dollar index to its
lowest since mid-May. However, the weak data also pressured oil prices by raising concerns
about U.S. gasoline demand this summer, Yawger said.

Your partner in Energy Services
Khaled Malallah Al Awadi,
Energy Consultant
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Mobile : +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working as
Technical Affairs Specialist for Emirates GenerTechnical Affairs Specialist for Emirates GenerTechnical Affairs Specialist for Emirates GenerTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation foral Petroleum Corp. “Emarat“ with external voluntary Energy consultation foral Petroleum Corp. “Emarat“ with external voluntary Energy consultation foral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for
the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas PipeliManager in Emarat , responsible for Emarat Gas PipeliManager in Emarat , responsible for Emarat Gas PipeliManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedne Network Facility & gas compressor stations . Through the years , he has developedne Network Facility & gas compressor stations . Through the years , he has developedne Network Facility & gas compressor stations . Through the years , he has developed
great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supply
routes. Many years were spent draroutes. Many years were spent draroutes. Many years were spent draroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forfting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forfting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forfting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for
the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally ,internationally ,internationally ,internationally , via GCC leading satellite Channels .via GCC leading satellite Channels .via GCC leading satellite Channels .via GCC leading satellite Channels .
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 05 June - 2016 K. Al Awadi

New base home edition by khaled al awadi 0609

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to New base home edition by khaled al awadi 0609

Similar to New base home edition by khaled al awadi 0609 (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base home edition by khaled al awadi 0609