New base special 02 april 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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NewBase 02 April 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Drydocks World is new venue for ‘smart’ ABB Turbocharging Service Point
Press Release – Drydocks World
Drydocks World, the international service provider to the maritime, oil & gas and energy sectors
announced today that ABB’s first-ever Middle Eastern Turbocharging Service Point is now in
operation inside its Dubai-based facility. The new Turbocharging Service Point will promote
sharing of mutual benefits to enhance business of both companies, ensure enhanced
turbocharger service to customers in the yard, and offer one-stop ABB turbocharger solutions at
Drydocks World and Maritime World. ABB’s large global Service Network will also support
Drydocks World. His Excellency Khamis Juma Buamim, Chairman of Drydocks World &
Maritime World said, “We are delighted to further
strengthen the relationship with ABB
Turbocharging. The Service Point would definitely
improve business volume from turbocharger
overhauling and offer enhanced new services and
is also part of our strategy of enhancing efficiency
and reducing fuel consumption, emissions and
building customer satisfaction levels. ABB can
utilize the services provided through our (GOS)
Global Offshore Services arm round the clock. The
OEM Service Point for ABB turbochargers is
located in the yard’s premises and provides an
international warrantee. This will be an added attraction to the owners as it improves the
convenience for them.”
“In the Middle East, we see the need to be even closer to our customers. We are grateful to
Drydocks World for entering into this partnership which will further our plans for expansion in the
Middle East, with this new station in Dubai. Thanks in part to the new Service Point at Drydocks
World, we now offer the full scope of services needed to maintain ABB turbochargers quickly and
professionally, including overhauls.
Drydocks World has been working with ABB Turbocharging, and now ABB engineers and
equipment will be permanently based inside the Drydocks World’s new Service Center. ABB’s
‘smart’ turbocharger applications in the marine industry help reduce fuel consumption and
emissions while increasing efficiency, reliability, service and support. In service, ABB’s
turbocharging solutions enable customers to save significantly on service costs and spare parts
and to extend the lifetime of their applications.

Qatari GIS Signs Share Purchase Agreement to Acquire all of
JDC's 30% Shareholding in GDI
Source : Zawya
Gulf International Services (GIS), the largest service group in Qatar, with interests in a broad cross-section
of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling,
accommodation barge, helicopter transportation, and catering services has signed a Share Purchase
Agreement ("SPA") with Japan Drilling Co. Ltd. ("JDC") to acquire all of JDC's 30% shareholding in Gulf
Drilling International Ltd. Q.S.C. ("GDI"). Pursuant to the terms of the SPA, GIS shall own all of JDC's
shares in GDI starting 1 May 2014, making GDI a wholly owned subsidiary of GIS .
The SPA was signed by H.E. Dr.
Mohamed Bin Saleh Al-Sada,
Minister of Energy and Industry
and Chairman and Managing
Director of the Board of GIS , Mr.
Saad Sherida AL-Kaabi, Director of
Oil & Gas Venture of QP and GDI
Chairman of the BOD and Mr.
Yuichiro Ichikawa, President of
JDC.
On this occasion, H.E. Dr.
Mohamed Bin Saleh Al-Sada
stated, "This was an opportune time for GIS to increase its stake in GDI. GDI is now established as a world-
class onshore and offshore drilling contractor." GDI has been growing rapidly in recent years after it
embarked on the most intensive capital investment plan in its history. Upon receiving the full share from
Japan Drilling Company, GDI will become a fully owned subsidiary of GIS . In turn, GIS will enjoy
substantially higher earnings from GDI."
Mr. Yuichiro Ichikawa stated that one of the primary objectives of the joint venture was to transfer drilling
rig technology and the capabilities of operating drilling rigs safely and efficiently from JDC to a Qatari
company on a structured and sustainable basis. We are proud of GDI's achievements over the past ten years
and the self-sufficiency that it has achieved across all aspects of the business.
GDI and JDC also signed a Letter of Intent that provides for the exchange of further technical cooperation
between the two companies and the promotion of mutually beneficial business opportunities. The Letter of
Intent was signed by GDI's CEO, Mr. Ibrahim J. Al-Othman and Mr. Ichikawa. Mr. Al-Othman expressed
his appreciation for the fine support that JDC had extended to GDI and said GDI was pleased to be able to
continue its association with JDC its former partner.
The GIS Chief Coordinator, Mr. Ebrahim Al Mannai, stated that the fundamentals of the GIS investment to
increase its stake in GDI were favorable. It should also be noted that this transaction will be 100% financed
through an unsecured bilateral loan from local banks, obtained at competitive terms and conditions.
Mr. Ebrahim Al Mannai also stated that GIS ' shareholders will benefit from the substantial contributions
that GDI will be making going forward to GIS ' financial performance. GDI has entered into a new stage
and exciting phase of its journey, backed by world-class technical capabilities, impeccable HSSE track
record and long-terms contracts for its assets, and GIS is very pleased to have increased its stake in this
growing company.
From left: Al-Kaabi, HE Dr al-Sada and Ichikawa sign the share
purchase agreement

Mena oil exporters face deficits
Tom Arnold , The National .
Five oil-exporting countries in the Middle East and North Africa are on track to run fiscal deficits
this year, even as oil prices remain close to US$100 per barrel.
Iran, Iraq, Libya, Bahrain and Algeria are all estimated to have break-even oil prices in excess of
that level, according to data highlighted last month by the Institute of International Finance (IIF).
Bahrain, is estimated to have a break-even of $120 per barrel, estimated Bank of America Merrill
Lynch in a report released in February. Abu Dhabi remains in fiscal surplus for now, with a break
even-price of $95 per barrel, the bank estimated.
The break-even price refers to the estimated level that oil prices need to be at in order for
governments to balance their budgets.
“Ballooning government spending has entailed a steady upward pressure on fiscal break-even oil
prices, exposing the fiscal outlook to some risks in case of a sustained slump in the oil market,”
said George Abed, senior counselor and director, Africa and Middle East department at the IIF.
Prices of North Sea Brent crude are hovering above $100 per barrel, well above the average of
$40 in the three decades up to this year. But elevated crude income levels have been more than
offset by a rapid ramp-up in spending, which has shot up by an annual average of 11 per cent
over the past decade, according to the IIF.

Governments are under increasing pressure to scale back their spending as longer-term oil
markets are expected to be squeezed by alternative energy sources in the US and elsewhere
coming online. The IMF has forecast that average spot oil prices could slip to $84.40 per barrel by
2019.
Most vulnerable to an oil price dip is Iran, with a break-even price of $145. Within the GCC,
Bahrain is most vulnerable, as the IMF warned in a concluding statement last week following a
mission to the country.
“Fiscal adjustment must be a priority,” said May Khamis, an IMF official. “The state budget deficit
is expected to continue to rise in the medium term. Without additional fiscal measures,
government debt is projected to increase and become an important source of vulnerability to the
economy in the medium term.”
The IMF recommended a gradual retargeting of subsidies to the lower-income segments of the
population, and controlling the growth of the public sector wage bill.
The UAE and Saudi Arabia are among governments at a more advanced stage of balancing their
budgets. The UAE federal government and Abu Dhabi and Dubai began more tightly controlling
their spending from 2012, after increases to public sector wages and subsidies as well as Abu
Dhabi’s $20 billion support to Dubai after that emirate’s debt crisis.
As a result, Abu Dhabi’s break-even oil price had been pared down below $100 to around $95 per
barrel this year, Bank of America Merrill Lynch estimated. The break-even price for the UAE as a

whole is lower because of the diversity in the rest of the country’s economy: the IMF estimated the
figure at $74 per barrel in 2012.
Saudi Arabia hinted at a shift to a more prudent fiscal stance in its budget for this year, which
slowed spending growth to 4.3 per cent from 20 per cent the previous year. But Bank of America
Merrill Lynch has warned that the GCC’s largest oil producer might need to take further action if
sanctions against Iran are eased sufficiently to allow it to step up oil output.
“The crawl higher in the breakeven oil price coupled with the potential return of Iranian oil
suggests government spending growth needs to moderate going forward,” analysts at the bank
wrote in a recent report. “Over the medium term, the arithmetic of the fiscal breakeven oil price is
firmly against policymakers given revenues are constrained by production and limited non-oil
revenues for now.”

Laffan Refinery 2 to enhance Qatar export capacity
By Pratap John/Chief Business Reporter Gulf-Times
The new Laffan Refinery will provide value addition and economic opportunities by enhancing
Qatar’s export capacity and fulfilling the long-term needs of international markets, said HE the
Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada.
At the foundation stone laying of Laffan Refinery 2 (LR2) al-Sada said the new refinery represents
another step on the road to achieving the Qatar National Vision conceived by HH the Emir Sheikh
Tamim bin Hamad al-Thani.
“This refinery is part of an integrated development programme being implemented by all active
parties in the energy and industry sector in Qatar to enhance our capability to fulfil diverse energy
needs,” he said.
He added that the new refinery will create added value and new economic opportunities by
enhancing Qatar’s export capacity and fulfilling the long-term needs of international markets.
“We in the energy sector, Qatar Petroleum in particular, are fully committed to utilising our
hydrocarbon resources and employing the huge potential of our petrochemical and manufacturing
industries to achieve the growth and development that our beloved country and its wise leadership
aspire to,” al-Sada said.
Qatargas CEO Sheikh Khalid bin Khalifa al-Thani said, “Qatargas is grateful for the confidence
placed in us by the shareholders as we initiate the Laffan Refinery 2 project.
“Over the years, Qatargas has successfully delivered a series of world-class projects that uphold
our commitment to technical and operational excellence while maintaining the highest
environmental standards. Once again we bring together industry leading partners to stimulate
further economic growth for the country and deliver increased value to our people and
shareholders.”
Qatar Petroleum director (downstream ventures) Mohamed bin Nasser al-Hajri said, “As part of
Qatar Petroleum’s vision and mission we are paying special attention to the development of the
downstream petrochemical and refining sector with the clear objective of creating additional
opportunities for the production of intermediate and derivative products to satisfy the increasing
domestic demand and create new markets for the country.
“We value our partnership with Qatargas and the various stakeholders. We look forward to
continuing our collaboration on joint projects which foster sustainable growth.”
HE Dr al-Sada speaking at the foundation stone
laying ceremony of the new Laffan Refinery
yesterday.

Salman Ashkanani, Qatargas chief operating officer (refinery ventures, said, “With our track record
of operating multiple projects safely, reliably and efficiently over the years, we are pleased to have
been entrusted to deliver and operate LR2.
“Upon its completion, Qatar will have the capacity to process approximately 40% of the
condensate from the North Field. This significant achievement will be a catalyst for further
economic stability.”
The Laffan Refinery processes condensate, an associated product to natural gas production that
is refined into a number of high-quality products, which can be used as lower emission fuels and
feedstock for petrochemical production. All products will be hydro-treated to reduce the sulphur
content, meeting the most stringent quality standards.
LR2 will process 146,000 barrels per stream day (BPSD) of condensate feedstock.Refined
products will include 71,000 BPSD of naphtha, 60,800 BPSD of kerosene, 27,000 BPSD gasoil
and 850 tonnes of LPG a day (butane and propane).

Qatar’s 2013 growth at 6.5% on non-hydrocarbons boost
By Santhosh V Perumal/Business Reporter Gulf-Times
Qatar’s real economy is estimated to have expanded by 6.5% year-on-year in 2013, mainly aided by a double-digit
growth in the non-hydrocarbon sectors, according to latest official figures. The contribution the country’s non-
hydrocarbon sector to real gross domestic product (GDP) was higher than that of the hydrocarbon sector, indicating
the fruition of the diversification strategies.
The mining and quarrying sector, under which falls the hydrocarbon sector, is estimated to have grown by mere 0.1%
in 2013, while non-hydrocarbon sector grew by 10.4%, the Ministry of Development Planning and Statistics
(MDP&S) said.
The country’s real GDP (at constant prices) stood at QR340.91bn with the non-hydrocarbon sector constituting 57%
or QR193.19bn and hydrocarbon 43% or QR147.73bn.
The manufacturing sector is seen to have expanded by 5.6%; electricity and water (6.4%); construction (13.6%);
trade, hotels and restaurants (12.8%); transport and communication (9.7%); finance, insurance, real estate and
business services (14.3%) and government services (15.1%).
On nominal terms, the economy is estimated to have risen by 6.6% with the hydrocarbon sector growing by 2.2% and
non-hydrocarbons by 10.5% in 2013.
Trade, hotels and restaurants sector is estimated to have grown by 23.7%, followed by finance, insurance, real estate
and business services (22%); construction (16.7%), electricity and water (11.2%) transport and communication
(10.7%); while manufacturing witnessed 5.1% decline.
On a quarter-to-quarter basis, Qatar’s real economy (at constant prices) is up 5.6% and nominal economy (at current
prices) by 5.8%. The gross value addition (GVA) at constant prices in the hydrocarbon sector during the fourth
quarter (Q4) of 2013 fell 1.1% due to lower production of crude oil and closing down of few liquefied natural gas
trains for maintenance in the third quarter of 2013.
The high growth in GVA at constant prices in the non-hydrocarbon sector during Q4 2013 was owing to double-digit
rise seen mainly in construction, trading, hospitality and financial sectors, coupled with over 12% jump in the
country’s population, MDP&S said.
Quarterly GDP by economic activities, Q4 2013.

Liquefied gas terminal to boost energy sector
© Jordan Times 2014 By Mohammad Ghazal
AMMAN -- The liquefied natural gas (LNG) terminal in Aqaba will give a boost to Jordan's
energy sector, a senior official said Monday.
Work on the $65 million terminal is going as planned, and it is expected to be ready during the first
quarter of 2015, Energy Minister Mohammad Hamed said at a meeting held by the EDAMA
Association under the theme "The Role of Gas in Securing a Sustainable Energy Mix for Jordan".
"The terminal will give independence to the Kingdom in the energy field," he added. The project
will enable Jordan to meet its needs of natural gas for power generation after the halt in natural
gas supplies from Egypt since July 2013 following a series of attacks against the Arab Gas
Pipeline in Sinai, according to the minister.
"Although importing LNG is more
expensive than the natural gas that we
used to get from Egypt, LNG remains 30-
35 per cent less expensive than diesel
and heavy fuel, which we currently use for
power generation after the cut in Egyptian
gas," Hamed said.
The minister told The Jordan Times that
Shell won a tender to supply the terminal
with LNG. The Cabinet is expected to
approve the agreement with the company in a few days after which the ministry will sign the
agreement with Shell.
Describing the terminal as a strategic project, Mounir Bouaziz, Royal Dutch Shell VP for the
commercial region of the Middle East and North Africa, said it will reduce the government's energy
spending by about $500 million annually. "The terminal is a strategic infrastructure in the gas
field," he said, noting that demand on gas is expected to double globally and it will also surge
significantly in the Middle East.
By 2025, the Middle East is expected to be the second largest market for consumption of gas after
Asia, Bouaziz added. Estimates by the International Energy Agency indicate that there is sufficient
natural gas to meet the world's needs for the next 200 years, he noted.
In a speech at Monday's event, EDAMA Association CEO Hala Zawati highlighted several projects
that Jordan is implementing in the field of renewable energy and gas. Noting that the Kingdom will
be one of the first countries in the region to generate power from renewable energy, she said the
country's grid is expected to be supplied with power generated from renewable energy plants in
less than 18 months.
EDAMA -- Arabic for sustainability -- is a local business association that seeks "innovative
solutions for energy and water independence and productivity", according to its website.

ROC farms in to Production Sharing Contract offshore Malaysia
Source: Roc Oil
Roc Oil Company has announced the farm in to a Production Sharing Contract (PSC) which includes three
fields D35, D21 and J4 (Fields), located offshore Malaysia in water depths of approx. 50 metres. The Fields
are currently 100% owned and operated by PETRONAS Carigali and ROC has farmed into a 50%
participating interest. The Fields are in production with a combined daily oil rate of approx. 10,000 bopd
and gas sales of approx. 17 mmscf/d gross working interest. ROC’s economic interest (50%) of the 2P
reserves from the Fields is 8.7 mmboe.
ROC’s Chief Executive Officer Mr Alan Linn said: 'The farm in is an excellent fit for our business and in
line with our Asian development strategy, we expect the Fields to become cornerstone development assets
within our growing regional portfolio. The Fields, particularly D35, contain material in place oil and gas
volumes, and overall field recovery is expected to benefit significantly from the introduction of secondary
and tertiary recovery technologies. The fields provide a portfolio of immediately bookable reserves plus
contingent and prospective resources, which combined materially add to and extend the reserves and
resources life of ROC.

The farm in agreement includes amendments to the existing PSC effective from 1 January 2014 until
December 2034. The PSC terms are designed for field redevelopment and enhanced oil recovery (EOR) to
commercially encourage progressive incremental oil development over the full life of the PSC.
ROC’s experience in the redevelopment of the Zhao Dong fields, offshore Bohai Bay, China, is a good
analogy for the redevelopment potential of the Fields. Since 2006, ROC has doubled the recoverable
reserves in Zhao Dong with a combination of reservoir development optimisation; facilities debottlenecking;
capacity enhancement and the introduction of low cost drilling for production and injection wells designed
to maximise recovery from compartmentalised reservoirs. PETRONAS Carigali and ROC will work
together to unlock the Fields’ redevelopment potential and our track record has been key in bringing this
significant redevelopment opportunity to ROC.”
Farm In Terms
Key terms in the agreements are summarised below:
• US$25 million plus a carry with a 50% participating interest of US$80 million for the project spread over
Phases 1 and 2.
• The project will be delivered by an Integrated Project Team comprising personnel from ROC and PETRONAS
Carigali. PETRONAS Carigali will continue to be the Operator of the PSC and retains responsibility for
operations and maintenance of the Facilities. PCSB has appointed ROC as the Project Development
Manager, responsible for subsurface management, well engineering, new facilities projects and project
execution.
About the Project
The Fields are located offshore Malaysia. D35 is the largest of the three fields with the longest production
history and represents a significant brownfield redevelopment project. Within the D35 field boundary there
is evidence of significant appraisal and near field exploration potential. J4 and D21 are satellite producing
assets with similar potential and together they comprise the D35, J4 and D21 PSC.
The proposed redevelopment project consists of distinct phases:
1. Phase 1 Redevelopment – commencing in early 2014 is designed to increase oil production rate and
enhance the Fields production potential through a series of intervention activities and facility
debottlenecking projects. The Phase 1 activities include an agreed work scope and are expected to
contribute approximately 17.4 mmboe of 2P gross economic entitlement (ROC net 50%: 8.7 mmboe) from 1
January 2014. Phase 1 has a minimum work commitment of US$70 million gross and an estimated total
capital investment requirement of up to US$250 million gross, operating costs associated with Phase 1 are
expected to be approximately US$22/boe.
2. The Phase 2 EOR Project is expected to significantly expand the production and overall recovery potential
from the Fields by accessing 2C Contingent Resources of 79.6 mmboe gross economic entitlement reserves
(ROC net 50%: 39.8 mmboe). The Phase 2 project is subject to a Field Development Plan (“FDP”) decision,
following completion of a series of studies designed to prove the reservoirs’ responses to re-pressurisation
and tertiary recovery. Completion of the study work and the subsequent FDP approval process is planned
during 2015. Phase 2 has a minimum work commitment of US$50 million gross and full phase 2
redevelopment cost estimates will be refined during the study period.
In addition, the project also offers exploration opportunities, initial assessment of the Best Estimated
Prospective Risked Resources associated with these fields is approximately 12mmboei (ROC net 50%) and
requires further evaluation, however, one well is already under consideration for drilling in 2015.

Petronas to re-design Angsi Chemical Enhanced Oil Recovery project
http://www.2b1stconsulting.com/petronas-to-re-design-angsi-chemical-enhanced-oil-recovery-project/
Petronas, the Malaysia national oil company (NOC) and the super major ExxonMobil are
considering to re-design the Angsi Chemical Enhanced Oil Recovery project from the original
CEOR vessel concept into an onshore treatment plant at Terengganu on the East Coast of
Malaysia Peninsula.
Since 2012, Petronas and ExxonMobil are investigating solutions to maintain the plateau
production and expand the lifespan of the Angsi oil and gas field in the South China Sea. Located
160 kilometers offshore Terengganu on the East Coast of the peninsula, Angsi is a strategic field
for Petronas since the first production in 2001.
In this Angsi oil and gas field the working interests are shared 50/50 between Petronas and
ExxonMobil, with Petronas acting as the operator. Malaysia the recovery rate of the the crude oil
from the in-place reserves is ranging between 30% and 40%. Therefore Petronas is now targeting
a 50% average recovery rate aligned with other companies. Through the Angsi full field
development project, Petronas and ExxonMobil are expecting to recover:

- 1.4 trillion cubic feet (tcf) of natural gas
- 160 million barrels of crude oil.
To boost the recovery rate, Petronas is willing to deploy the chemical enhanced oil recovery
techniques to all the maturing fields such as Angsi. This technology relies on a smart mixture of
alkali-surfactants-polymers (ASP) diluted in soft water.
In this process, the alkali-surfactants-polymers mixture as well as the soft water require a
sophisticated chemical and desalination treatment. The performances of the CEOR depends
directly from the quality of chemical mixture and water treatment process. Because of the distance
from shore, Petronas and ExxonMobil completed a front end engineering and design (FEED) work
to operate this chemical and water treatment process offshore with a purposely converted
CEOR vessel.
Petronas to award Angsi CEOR new FEED soon
MMC Oil & Gas Engineering and Water Standard completed this FEED work for the topsides in
2012. At the end of this Angsi CEOR vessel FEED work the topsides required for the chemical
and water treatment ended up at 7,000 tonnes instead of the originally estimated 4,000 tonnes.
This significant weight different impacted directly the size of the carrier to be converted into
CEOR vessel, thus on its cost and the cost of the entire Angsi CEOR project. With a 15 days
storage capacity of the ASP additives and 150,000 barrels per day (b/d) of water injection the
Angsi CEOR project jumped significantly above the first estimated $1 billion capital expenditure.
Even though this Angsi CEOR vessel was
due to run four years in Angsi before being
transferred to the Shell and Petronas St
Joseph oil and gas field offshore the
Sarawak Province, the additional costs are
compromising the value of the project. In
addition the Shell St Joseph CEOR vessel
does not need the Angsi CEOR oversize.
As a first conclusion Shell decided to go on
its own with a fit for purpose St Joseph
CEOR vessel. In this context, Petronas and ExxonMobil have decided to rethink the conceptual
design of this Angsi CEOR project around onshore facilities to be located in Perengganu.
This onshore solution offers more flexibility to install the ASP additives preparation and water
desalination units but it requires to transport the chemical mixture from Perengganu to the Angsi
oil and gas field through a subsea 130 kilometers pipeline. Anyway since the performance of the
recovery rate is depending on the quality of the chemical and water mixture, this onshore solution
rises some questions about the stability of this mixture after 130 kilometers pipelines
transportation.
With such critical questions, Petronas and ExxonMobil are evaluating new FEED offers for this
onshore Angsi CEOR project to be awarded on this second quarter 2014. The FEED work on this
Angsi full field development alternative solution should take six months, postponing the final
investment decision (FID) for Petronas and ExxonMobil to the end of 2014 for first operations of
the onshore Angsi CEOR project in 2016.

Five states and the Gulf of Mexico produce more than 80% of U.S. crude oil
http://www.eia.gov/todayinenergy/detail.cfm?id=15631
Five states and the Gulf of Mexico supplied more than 80%, or 6 million barrels per day, of the crude oil (including
lease condensate) produced in the United States in 2013. Texas alone provided almost 35%, according to preliminary
2013 data released in EIA's March Petroleum Supply Monthly. The second-largest state producer was North Dakota
with 12% of U.S. crude oil production, followed by California and Alaska at close to 7% each and Oklahoma at 4%.
The federal offshore Gulf of Mexico produced 17%.
Total U.S. crude oil production grew 15% in 2013 to 7.4 million barrels per day. Texas and North Dakota
led that growth, with their crude oil outputs each increasing 29% from 2012. Production gains in both states
came largely from shales, especially the Eagle Ford in Texas and the Bakken in North Dakota. In the three
years since 2010, North Dakota's crude oil output has grown 177% and Texas's output 119%, the fastest in
the nation.
Three other states that were among the top 10 U.S. producers in 2013 also experienced production growth
rates above 20% during the past three years. Colorado, which overlies part of the Niobrara Shale, had 93%
growth in production from 2010 to 2013; Oklahoma, with the Woodford Shale, had 62% growth; and New
Mexico, which shares the Permian Basin with Texas, had 51% growth.
Crude oil is produced in 31 states and two offshore federal regions—the Gulf of Mexico and the Pacific
Coast. Of those 33 producing areas, 10 supply more than 90% of U.S. output. While 9 of those top 10 areas
were also among the top 10 producers five years ago, their relative contributions have changed.
North Dakota has risen from the seventh largest oil producer to the third. The Gulf of Mexico, Alaska, and
California, which together in 2008 supplied nearly half of U.S. crude production mainly from conventional
oil reservoirs, provided less than one-third of national output in 2013. Output in those areas has declined at
the same time that overall national production has expanded.

Japan’s Nippon ( LNG shipper ) Plans Huge LNG Investment
LNG World News Staff, April 1, 2014; Image: NYK
Japan’s Nippon Yusen Kaisha (NYK), one of the largest shipping companies in the world, said it aims
to invest JPY530bn (approximately $5.13bn) in LNG and the offshore business over the next five
years.
NYK said in the company’s new medium-term management plan that it “realizes strong business portfolio
against changing market conditions by utilizing business chances such as LNG (liquefied natural gas)
transportation and offshore business, and strengthens financial ground which enables large-scale
investment, and sets out NYK Group’s sustainable growth.”
The company plans to expand its fleet of
LNG tankers from 67 at present, including
jointly owned vessels, to 100 by 2019.
NYK is also looking to develop a new
business related to LNG as a fuel for ships.
Yasumi Kudo, president NYK .
Setting out its mid-term management plan
NYK, much like compatriot Mitsui OSK
Lines (MOL), said it would be focusing on
LNG and offshore. Setting out total
investments of JPY790bn over the next five
years the shipowner said: “NYK realises
strong business portfolio against changing
market conditions by utilising business
chances such as LNG transportation and offshore business, and strengthens financial ground which enables
large-scale investment, and sets out NYK group’s sustainable growth.” Looking at the LNG sector NYK
noted the growing demand from Japan and developing countries and the removal of the shale gas export ban
by the US.
The company said it planned to expand its fleet of LNG carriers from 67 at present, including jointly owned
vessels, to over 100 by 2019. Noting shortage of highly skilled seafarers for LNG vessels it plans to develop
its training at its inhouse academy in the Philippines and other institutions. It is a looking to develop a new
business around LNG as a fuel for ships.
In the offshore sector NYK plans to expand its presence in the floating production market, with FPSOs,
FSRUs and FLNG to provide long term stable revenues. It also plans to expand it shuttle tanker fleet
through Knutsen NYK Offshore Tankers (KNOT) by seven vessels to 34.
Looking at containerships and dry bulk NYK said it plans to reinforce an asset light strategy. It aims to
reduce its containership fleet by 14 to 85 vessels over the next five years. Its owned and long term chartered
fleet will be reduced from 74 to 65 by 2019.
In the bulk shipping sector it is looking reduce its exposure in large sized vessels. The plan is to downsize
its capesize fleet 126 vessels to 100 by 2019 and post-panamax and panamax bulkers from 97 to 85.

USA: Explosion Causes Fire at Plymouth LNG Facility
LNG World News Staff,+ http://earthfix.kcts9.org/energy
Williams Partners said that an explosion and fire occurred on Monday at the company’s liquefied
natural gas (LNG) facility in Plymouth, Washington. The facility is owned by Williams Partners’
subsidiary Northwest Pipeline.
The facility was shut down yesterday morning. One employee was injured and four others were assessed by
medical personnel and then released, the company said in a statement.
Company officials’ initial assessment of the incident determined this was not a natural gas pipeline rupture;
rather, it occurred within the LNG storage facility. The tanks involved were about one-third full of liquefied
natural gas.
“Company officials and emergency responders late Monday were conducting a visual inspection of the
facility using remotely operated devices and are developing a plan for returning to the facility. Once it is
safe to return to the plant, we will begin a thorough investigation into the cause of the incident. Williams’
officials are working in close coordination with local emergency personnel in response to the incident and
we regret the inconvenience this has caused to our neighbors in Plymouth,” the company added.

Oil & Gas UK awards first phase of project to boost UKCS exploration to SLR Consulting
Source: Oil & Gas UK
Oil & Gas UK has launched the first phase of a project to stimulate more exploration by promoting
new and existing plays on the UK Continental Shelf (UKCS). SLR Consulting has been
commissioned to complete a three-month preliminary study to investigate the way forward for a
21st century exploration road map – a digital perspective of petroleum geology.
Oonagh Werngren, Oil & Gas UK’s operations director, explains: 'The aim of the 21st Century
Exploration Road Map is to contribute to improving exploration success and address the 50 per
cent decrease in the number of wells drilled. The outcome of the study will provide industry with
the specifications for a subsequent implementation project to deliver an on-line, more dynamic
source of digital geological maps summarising current subsurface understanding and the
hydrocarbon resources potential within key areas of the UKCS.
'The project is one of several being driven by the PILOT Exploration Task Force, which works
together with the Department of Energy and Climate Change (DECC), to revitalise exploration and
ensure the economic recovery of oil and gas resources from the UKCS. It aligns with the
recommendations put forward by the recent Wood Report, which identifies the urgent need to
evaluate new and unexplored reserves and create an up-to-date perspective of the geology of the
UKCS together with tools to ensure more effective sharing of data across the industry.'
Oil & Gas UK’s fellow stakeholders supporting the initiative include DECC, the British Geological
Survey (BGS), The Natural Environment Research Council (NERC), Common Data Access
(CDA), exploration companies, operators and firms providing offshore services.
Hamish Wilson, SLR Consulting’s technical director, explains: 'SLR Consulting will be engaging
with individuals and organisations with expertise in UKCS exploration to establish
recommendations for both the geological and geographical scope and key priorities of the 21st
Century Exploration Road Map. This process will enable us to define the prospective content,
timing and phasing of the project which is scheduled for delivery by the end of 2015.'

BP to close Australian refinery as mega-plant competition mounts
Reuters - UK Focus – (Reuters)
BP is ceasing production at its Bulwer Island refinery in Brisbane, Australia by mid 2015, blaming
competition from new mega-refineries in Asia that are cheaper to operate.
Australia's refineries, owned by BP, Royal Dutch Shell, ExxonMobil and Caltex, have mostly
booked losses over several years as a higher local dollar, tighter fuel quality standards and the
introduction of super-sized refineries in Asia have made them uncompetitive.
Rather than spend money on upgrading
plants, BP and other majors have been
looking to sell them or turn them into fuel
import depots. "Market reality global
refining capacity is shifting to service the
energy growth areas of the globe and is
doing so with very large port-based
refineries," Andy Holmes, president of BP
Australasia, said in a media conference.
BP said it was considering converting the
Bulwer Island refinery, which dates back to the 1960s and has a capacity to produce 102,000
barrels of fuel per day, into a multi-product import terminal.
"We have concluded that the best option for strengthening BP's long-term supply position in the
east coast retail and commercial fuels markets is to purchase product from other refineries,"
Holmes said. The shift away from refining in Australia follows reductions in refining in countries
including Germany, France and Britain, where growth in energy consumption is slowing.
"If you look at the players in Australia, there are BP, Chevron and Shell and they do have
refineries elsewhere in Asia outside of Australia," said Suresh Sivanandam, short-term
downstream oil analyst at Wood Mackenzie
"For example, Chevron has refineries in South Korea and Thailand and Shell has Malaysia,
Singapore and also Japan. They can easily meet Australia's deficit from these markets,"
Sivanandam said. BP employs 380 staff and 300 contractors at Bulwer. The refinery has a
capacity of around 102,000 barrels per day and produces petrol, diesel, kerosene, aviation fuel,
heating oil and LPG.
Asian mega refineries generally produce petrol as a by product, given the primary demand for
transport fuel in the region is diesel. Shell earlier this year said it was exiting refining and
marketing in Australia, selling the business for around $2.6 billion to global oil trader Vitol SA.
Shell has already closed its Sydney refinery, while Caltex is due to convert its Sydney refinery to
an import terminal this year.
BP's 146,000 barrel-per-day Kwinana refinery on the western coast remained a "big part" of the
company's growth strategy in the Australian states of Western Australia, South Australia and
Tasmania, a BP spokesman said. (Reporting by James Regan, Jane Wardell in Sydney and
Florence

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Services
Khaled Malallah Al Awadi,
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Energy Services & Consultants
Mobile : +97150-4822502
khalid_malallah@emarat.ae
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 24Khaled Al Awadi is a UAE National with a total of 24Khaled Al Awadi is a UAE National with a total of 24Khaled Al Awadi is a UAE National with a total of 24
yearsyearsyearsyears of experience in tof experience in tof experience in tof experience in thehehehe Oil & Gas sector.Oil & Gas sector.Oil & Gas sector.Oil & Gas sector.
Currently working as Technical Affairs Specialist forCurrently working as Technical Affairs Specialist forCurrently working as Technical Affairs Specialist forCurrently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with external
voluntary Energy consultation for the GCC area via Hawk Energyvoluntary Energy consultation for the GCC area via Hawk Energyvoluntary Energy consultation for the GCC area via Hawk Energyvoluntary Energy consultation for the GCC area via Hawk Energy
Service as a UAE operations base , Most of the experiencService as a UAE operations base , Most of the experiencService as a UAE operations base , Most of the experiencService as a UAE operations base , Most of the experience weree weree weree were
spent as the Gas Operations Manager in Emarat , responsible forspent as the Gas Operations Manager in Emarat , responsible forspent as the Gas Operations Manager in Emarat , responsible forspent as the Gas Operations Manager in Emarat , responsible for
Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in tEmarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in tEmarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in tEmarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designing &he designing &he designing &he designing &
constructingconstructingconstructingconstructing of gas pipelines, gas meterinof gas pipelines, gas meterinof gas pipelines, gas meterinof gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, &g & regulating stations and in the engineering of supply routes. Many years were spent drafting, &g & regulating stations and in the engineering of supply routes. Many years were spent drafting, &g & regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has beccompiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has beccompiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has beccompiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become aome aome aome a
reference for many of thereference for many of thereference for many of thereference for many of the Oil & Gas Conferences held in the UAE andOil & Gas Conferences held in the UAE andOil & Gas Conferences held in the UAE andOil & Gas Conferences held in the UAE and Energy program broadcasted internationally , via GCC leadingEnergy program broadcasted internationally , via GCC leadingEnergy program broadcasted internationally , via GCC leadingEnergy program broadcasted internationally , via GCC leading
satellitesatellitesatellitesatellite ChannelsChannelsChannelsChannels ....
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