New base special 02 september 2014

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NewBase 02 September 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Masdar, Tadweer to research biodiesel production from waste cooking oil
Emirates News Agency, WAM
Masdar Institute of Science and Technology, an independent, research-driven graduate-level
university focused on advanced energy and sustainable technologies, and Tadweer, the Centre of
Waste Management – Abu Dhabi, have signed a two-year research agreement focused on
improving the process for the production of biodiesel from waste cooking oil.
The research will focus on achieving fundamental improvement of the process of converting waste
cooking oil to biodiesel through further experimentation and sensitivity studies. Processing and
reusing waste cooking oil as fuel is an environmentally friendly sustainable energy solution that
can contribute to targets for renewable energy uptake in U.A.E. and abroad. Biodiesel is bio-
renewable, carbon-neutral and rapidly biodegradable.
The agreement was signed by Dr. Fred
Moavenzadeh, President, Masdar Institute,
and Eisa Saif Al Qubaisi, General Manager
of the Tadweer (CWM) in the presence of
officials from both the institutions.
Dr. Isam Janajreh, Associate Professor of
Mechanical Engineering and Head of the
Waste to Energy (W2E) Laboratory at Masdar
Institute, will be the principal investigator (PI)
of the project, while Dr. Ahmed Aljabri will be
the co-principal investigator. As per the
research project agreement, the principal
investigator and the co-principal investigator will design, plan, and formulate the modelling and
experimental investigations with assistance from two Masdar Institute Master's degree students.
Dr. Moavenzadeh said, "The research agreement with CWM illustrates U.A.E.'s commitment to
facilitating the production of clean energy and minimisation of waste. With the support of the
country's leadership, we will continue our contribution to the development of clean energy
technologies and ensure faster adoption of sustainable measures. We are confident that the
outcome of this collaboration will encourage the community to support such green technologies."
The two institutions will be assisted in this project by Australia's Laboratory for Turbulence
Research in Aerospace and Combustion, Department of Mechanical and Aerospace Engineering,
University of Sydney. Dr. Assad Masri, Australian Research Council-Australian Professorial Fellow
in the School of Aerospace, Mechanical and Mechatronic Engineering, Faculty of Engineering and
Information Technologies, at the University of Sydney, and Chairman of the Australia and New
Zealand section of the Combustion Institute, will lead the collaboration from the Australian side. –

Saudi Electricity awards Siemens largest SVC contract
Saudi Gazette
Siemens, the global powerhouse which innovates the electrical world and operates in the fields of
energy, infrastructure, industry and healthcare, signed two contracts with Saudi Electricity
Company (SEC) for the construction of SVCs at Madinah East, Hail-2 and Al Jouf-2 380kV
substations.
From left: Eng. Ziyad Al-Shiha CEO of SEC, Arja Talakar CEO of Siemens Saudi Arabia and
Muhammad Islam, Head of Sales and Tendering Siemens Saudi Arabia, at the contract signing.
The contracts were signed by Eng. Ziyad Al-Shiha, Chief Executive Officer of SEC; Arja Talakar,
Chief Executive Officer, Siemens Saudi Arabia; and Peter-Karlheinz Bruder, Head of Energy
Transmission Siemens Saudi Arabia.
Within the scope of these contracts, Siemens will provide SEC with SVC plus and Protection
systems, Transformers, Switchgears, Civil and Electro-Mechanical work with a project execution
of 24 months. SVC plus, Siemens top notch technology will be used for the first time in the
Kingdom to enhance the performance of the SEC transmission networks of Western and Central
regions of Saudi Arabia.
The award of Madinah East, Hail-2 and Al Jouf-2 SVC projects to Siemens is another milestone in
the continuous relationship between the two companies and has made Siemens a key player in
the SVC market of Saudi Arabia.
“The construction of Static Var Compensator (SVC) will play a vital role in the stability of the
network and smooth transmission of power in Madinah, Hail and Al Jouf regions particularly in the
time of high demand during summer, Haj and Ramadan,” said Arja Talakar, CEO of Siemens
Saudi Arabia.
“Together with our partners E.A. Juffali & Brothers, we are fully committed to the country and its
people and will continue to differentiate ourselves through technology transfer and numerous
employment, training and development opportunities for local talent”

Egyptian N.Gas halts supplies of gas to Idku LNG plant
Daily News Egypt + NewBase
The Egyptian Natural Gas Holding company (EGAS) has stopped pumping gas to the Idku
liquefaction plant operated by British Gas and GDF Suez, as a result of the increased use of gas
by power stations, according to a senior official at EGAS.
EGAS expects production rates of about 4.85bn cubic feet of gas per day by the 2017/2018 fiscal
year, after the North Alexandria gas project is completed, compared to 4.75bn cubic feet produced
daily today.
In terms of importing liquefied natural gas from the beginning of the next year, the government will
not be able to meet the contractual quantities for the manufacturers at the Damietta and Idku
liquefaction plants, because while only 500m cubic feet per day will be imported for power plants,
the needs of manufacturers reach up to 1.88bn cubic feet per day.

About Egypt oil & Gas – Overview
Brief Overview
Egypt is the largest non-OPEC oil producer in Africa and the second-largest dry natural gas producer
on the continent. The country also serves as a major transit
route for oil shipped from the Persian Gulf to Europe and
the United States.
Egypt is the largest oil and natural gas consumer in Africa,
accounting for more than 20% of total oil consumption
and more than 40% of total dry natural gas consumption in
Africa in 2013. Energy subsidies, which cost the
government $26 billion in 2012, have contributed to rising
energy demand and a high budget deficit.
One of Egypt's challenges is to satisfy increasing oil
demand amid falling production. Total oil consumption
grew by an annual average of 3% over the past 10 years,
averaging almost 770,000 bbl/d in 2013. Egypt's oil consumption has outpaced production since
2010.
Egypt has the largest oil refinery capacity in Africa, although it operates well below capacity. The
country’s refinery output declined by 28% from 2009 to 2013, despite growing domestic oil
consumption. As a result, Egypt must import petroleum products to make up for the shortfall.
Egypt’s dry natural gas production has declined by an annual average of 3% from 2009 to 2013.
Substantial gas discoveries in the deep offshore Mediterranean Sea and in other areas in Egypt
remain undeveloped because the price that Egypt’s government is willing to pay foreign operators
for the gas is too low, making some investment projects commercially unviable.
Egypt’s natural gas exports have declined since 2009 because of increasing consumption and
declining production. Egypt’s government has been diverting natural gas supplies away from exports
to the local market. The country plans to start importing LNG after September 2014 when it installs
a regasification unit.
The Suez Canal and SUMED Pipeline are strategic routes for Persian Gulf oil and natural gas
shipments to Europe and North America. Closure of the Suez Canal and Sumed Pipeline would add
an estimated 2,700 miles of transit from Saudi Arabia to the United States around the Cape of Good
Hope via tanker.
The revolution in Egypt that started in 2011 did not have any noticeable effect on oil transit flows
through the Suez Canal. Oil transit via Suez has increased each year since 2009. In 2013, almost 3.2
million bbl/d of total oil transited in both directions, of which 1.5 million bbl/d was crude oil. This is
the largest amount ever shipped through the Suez Canal. Total crude oil flows via the Suez Canal
and SUMED pipeline accounted for about 6% of total seaborne-traded crude oil.
LNG flows through the Suez Canal in both directions were 1.2 Tcf in 2013, accounting for 10% of
total LNG traded worldwide. Egypt experiences frequent electricity blackouts because of rising
demand, natural gas supply shortages, aging infrastructure, and inadequate generation and
transmission capacity. Ongoing political and social unrest in Egypt has slowed the government’s
plans to expand power generation capacity by 30 GW by 2020.

India: Greka Drilling to drill 100 wells for Essar Oil in West Benga
Source: Greka Drilling
AIM-listed Greka Drilling, the largest independent and specialized unconventional oil & gas driller in Asia,
has announced that further progress has been made following mobilization orders from Essar Oil in relation
to the US$65 million contract for 100 wells to be drilled in the Raniganj East Block in Durgapur, West
Bengal.
Five GD75 rigs that were
mobilized from the
Company's existing fleet in
China and arrived in India
mid-August are at present are
being prepared for drilling at
designated well sites. Two of
the rigs are at present now
fully erected and will begin
drilling shortly. The
remaining three rigs are still
mobilizing to the Essar pre-
prepared drill sites. The first
wells will be spud in mid-
September, commencing the
100 well programme for
Essar.
Greka Drilling has already
opened field offices and other
support facilities in Durgapur,
West Bengal and are in the
final phase of technical and
HSE training of all local
employees in Durgapur. The
local teams are being
complimented and lead by
experienced Greka Drilling
personnel to ensure safe and
successful execution. The
drilling campaign is expected
to last about 12 months.
Mr. Randeep S. Grewal, Chairman, commented:
'We are delighted to announce that the Essar project is on track for spudding this month. This contract is
important for Greka Drilling as it confirms our intention to diversify the Company's client base,
geographical strata and drilling operations. It is also worth noting that this contract gives us an excellent
foundation to further expand our services into the highly prospective and scalable Indian unconventional gas
market which our business development personnel are focused on expanding into.'

UK: Egdon Resources announces results of the Wressle-1 exploration well, onshore
Source: Egdon Resources
Egdon Resources has announced the preliminary results from drilling of the Wressle-1 conventional
exploration well located to the East of Scunthorpe. The Wressle-1 well was spudded on 18 July 2014 and
on 23 August 2014 reached a total depth (TD) of 2240 metres measured depth (MD) (1814 metres true
vertical depth below OS datum (TVDSS)). Elevated mud gas readings were observed over large parts of the
interval from the top of the Penistone Flags reservoir target (1831.5 metres MD) to TD.
The well was logged using measurement whilst drilling (MWD) logging tools run on the drill string.
Preliminary petrophysical evaluation of the log data has indicated the presence of potential hydrocarbon
pay in three main intervals;
• Penistone Flags - up to 19.8 metres measured thickness (15.9 metres vertical thickness)
• Wingfield Flags - up to 5.64 metres measured thickness (5.1 metres vertical thickness)
• Ashover Grit - up to 6.1 metres measured thickness (5.8 metres vertical thickness)
The well is currently being completed with a 4 ½" liner to enable selective and sequential testing of these
intervals as part
of an extended
well test, for
which planning
consent has
already been
received. These
test operations,
which will be
designed to
determine the
flow rates,
hydrocarbon
type and hence
commerciality
of the Wressle-1
well, will be
undertaken
using a work-
over rig and are
expected to
commence
during October
2014.
The interests in the Wressle-1 well are: Egdon Resources U.K. 25.00% (Operator); Celtique Energie
Petroleum 33.33%; Europa Oil & Gas 33.34%; Union Jack Oil 8.33%.

Malaysia: Santos acquires interest in offshore Malaysia deepwater Block S from INPEX
Source: INPEX
INPEX has announced that through its wholly-owned subsidiary, INPEX Offshore Northwest Sabah, it has
reached an agreement to transfer a 25% participating interest in the deepwater Block S to Australia's Santos.
The Block is an offshore block located in East Malaysia, where INPEX Sabah conducts exploration
activities as an operator. The Block covers an area of 574km2 with a water depth ranging from 200m to
1,500m. The Block lies in the Sabah basin where large reserves of oil and natural gas, such as the Kikeh and
the Gumusut-Kakap oil fields were discovered. INPEX acquired the Block as an operator in January 2012
together with PETRONAS Carigali. After the acquisition of the Block, INPEX Sabah conducted a three-
dimensional seismic survey and geological and geophysical studies. Based on the result of the studies,
INPEX is planning to drill wildcat wells this year for new discovery of oil and natural gas deposits.
Santos conducts oil and gas exploration and production activities mainly in the Asian and Oceania regions
and has extensive business experience in Australia. INPEX and Santos are jointly engaged in many oil and
gas exploration and production activities such as the Bayu-Undan Project in the Joint Petroleum
Development Area between Australia and Timor-Leste and several exploration permits adjacent to the
Ichthys LNG project in the north-western Australia. This agreement with Santos regarding the Block will
further strengthen the relationship between INPEX and Santos.

Samsung Heavy, Samsung Engineering merger to create ‘world-class’ supplier
Press Release, September 01, 2014
Samsung Heavy Industries has officially announced that it will merge with Samsung
Engineering Co., Ltd, the first and largest engineering company in Korea.
The merger between Samsung
Heavy Industries and Samsung
Engineering was decided during
their board of directors meeting
on September 1 to create a
“world-class total solution
provider for shipbuilding and
onshore and offshore services.”
The merger ratio will be fixed at
1:2.36. Therefore, Samsung
Heavy Industries will issue new
stocks so that the shareholders of
Samsung Engineering can
exchange their shares for the
Samsung Heavy Industries’
shares and receive 2.36 Samsung Heavy Industries shares for every Samsung Engineering share they own.
The two companies plan to hold a special shareholders meeting on October 27, 2014 and complete the
merger process on December 1, 2014.
Through the merger, Samsung Heavy Industries will gain engineering, procurement, and project
management capabilities, which are the strengths of Samsung Engineering, and establish a stable foundation
for the growth of its offshore plant business.
Meanwhile, Samsung Engineering, which has focused its business in onshore hydrocarbon plants, will be
able to diversify into high value-added projects such as onshore LNG and offshore plants by securing
Samsung Heavy Industries’ offshore plant fabrication capabilities, which is recognized as one of the best in
the world.
The merger will give the two companies a chance to become a global top-tier EPC (Engineering,
Procurement and Construction) company. Their goal is to grow into a world-class total solution provider,
increasing their combined revenues of 25 trillion in 2013 to 40 trillion won in 2020.
“The two companies will be reborn as the world’s most competitive plant company based on our world-
class manufacturing facilities, fabrication experience, and outstanding technical manpower in the onshore
and offshore businesses,” said Dae-young Park, President and CEO of Samsung Heavy Industries.
Choong Heum Park, President and CEO of Samsung Engineering, was quoted as saying, “We will emerge
as a total solution provider that caters to the diverse needs of our clients by combining the expertise and
technologies we have each accumulated as individual companies in the plant, shipbuilding, and offshore
industries.”

Europe drafts emergency plan for Russia gas shut-down risk
Reuters + NewBase
The European Union could ban gas exports and limit industrial use as part of emergency
measures to protect household energy supplies this winter, a source told Reuters, as it braces for
a possible halt in Russian gas as a result of the Ukraine crisis.
Russia is Europe’s biggest supplier of oil, coal and natural gas, and its pipelines through Ukraine
are currently the subject of political maneuvering - not for the first time - as Europe and Moscow
clash over the latter’s military action in Ukraine.
Kiev is warning that Russia plans to halt gas supplies, while Moscow says Ukraine could siphon off
energy destined for the European Union - which has just threatened new sanctions if Moscow fails
to pull its forces out of Ukraine. While buyers of oil and coal can find new suppliers relatively
quickly, southeast Europe receives most of its gas from Kremlin-controlled Gazprom.
Tankers from Qatar and Algeria bring liquefied natural gas (LNG) to Europe via ports along the
Atlantic and Mediterranean oceans, but European buyers often re-sell those cargoes abroad for
higher prices rather than supplying their domestic market. A source at the EU Commission said it
was considering a ban on the practice of re-selling to bolster reserves.
“In the short-term, we are very worried about winter supplies in southeast Europe,” said the
source, who has direct knowledge of the Commission’s energy emergency plans. “Our best hope
in case of a cut is emergency measure 994/2010 which could prevent LNG from leaving Europe as
well as limit industrial gas use in order to protect households,” the source said.
European Union Regulation number 994/2010, passed in 2010 to safeguard gas supplies, could
include banning gas companies from selling LNG tankers outside of Europe, keeping more gas in
reserve, and ordering industry to stop using gas.

European Energy Commissioner Guenther Oettinger said last week during negotiations with
Ukraine and Russia that the bloc was preparing a “Plan B” to protect gas supplies in the worst
case scenario.
Hungary, likely to be among the countries most affected by a cut in supplies, said it was
monitoring the need for further increases in strategic reserves. The Development Ministry told
Reuters it was also looking at “potential regulatory methods that would prompt market players to
build reserves beyond the regulatory minimum.”
Cutting industrial consumption would hurt an already shaky European economy, while banning
utilities from selling liquefied natural gas (LNG) tanker cargoes overseas would hurt their
revenues. European utilities have been preparing for a supply cut by injecting as much gas as
possible into storage and as a result, the region’s storage facilities are filled to 90%, or 70bn cubic
metres, equivalent to 15% of Europe’s annual demand.
Whatever the bloc does, it will struggle to compensate fully if Russian gas stops coming to
Europe, political and industry sources say. Gas prices have risen 35% since July due to this threat.
Russia meets around a third of EU demand for oil, coal and natural gas, according to EU data. In
return it receives some $250bn a year, or around two-thirds of government revenue.
The problem with a potential cut is that continental Europe’s pipeline infrastructure was built from
East-to-West in order to import Russian gas. Efforts to build more supplies going the other way,
such as LNG from Atlantic terminals, are not sufficiently developed to meet this winter’s demand
in southeast Europe.
European energy suppliers could use more coal: that market is over supplied as a result of
slowing Asian demand and improvements in mining output from exporters in Colombia, Australia
and South Africa. US coal miners are also looking for new buyers since the North American shale
gas boom has pushed most coal out of the US market.
All this has caused a 40% coal price drop in the past three years. Again however, the problem is
infrastructure: large parts of central and eastern Europe rely on district gas heating, which means
burning coal to generate electricity will not help keep households warm this winter.
Russia halted gas flows to Ukraine three times in the past decade - 2006, 2009 and since June
this year - because of price disputes with Kiev, although this year gas intended for customers in
the EU have so far continued to flow via Ukraine.
Gazprom insists it has been a reliable supplier and that flows to Europe were in the past disrupted
only after Ukraine took some gas intended for the EU to meet its own demand. With Europe now
at odds alongside Ukraine against Russia, the impact of any future shut-down may be more
marked. “We believe the Ukrainian situation will not be resolved without a transit interruption
(and) prices would be likely spike,” said analysts at French bank Societe Generale.

NewBase Sepecial Report : Oman Key project and
Business Highlights during 2014
Although the Sultanate of Oman points only on the seventh position by crude oil proven
reserves amongst the Middle-East country it attracts more and more international companies
such as BP, PTTEP, Shell or Total to support the national companies Petroleum Development
of Oman (PDO), Oman Oil Company (OOC) and Oman Gas Company (OGC) for the
exploration production onshore and offshore.
Not belonging to the Organization of the Petroleum Exporter Countries (OPEC), Oman has
been developing its oil and gas resources only based on its internal goals and strategy, thus at
lowest pace than its neighboring countries so far.
This lowest speed in upstream development was
also justified by the nature of oil and gas fields
and related high costs as mostly ranked amongst
heavy crude oil categories and unconventional
natural gas also known for their high sulfur
content. Anyway the sustainable global price of
the crude oil around $100 per barrels positions
Oman as a new Eldorado for all companies.
Willing to develop its petrochemical sector,
Oman is investing heavily in gas field exploration
to produce the required quantity of feedstock.
Since most of the fields are located in the center
of the Sultanate, these upstream and
downstream projects are calling for the
deployment of pipeline systems across the
country historically concentrated on its northern
part along the Gulf of Oman.
In order to balance its economical development
across the Sultanate, Oman Authorities are
planning to dispatch their capital expenditure in $ multi-bilion projects including refineries,
petrochemical complex, storage terminal with all related utilities and power generation facilities.
1- Oman Gas to award Duqm gas pipeline EPC contract
The state-owned Oman Gas Company SAOC (OGC) is preparing to award the engineering, procurement
and construction (EPC) contract for the construction of the gas pipeline between Saih Nihayda and
the Port of Duqm in the Sultanate of Oman. As the main midstream company in Oman, OGC integrated
this Duqm Gas Pipeline project in its $3.5 billion program to develop infrastructures in the country.
This program includes the construction of pipelines but also the oil treatment to extract liquid petroleum gas
(LPG) and gas processing facilities to produce natural gas liquids (NGL). Established in 2000, GC received
in fact the mandate from the Government to link the upstream projects in Oman with the future
petrochemical industry to drive the domestic growth.

Well know for its heavy crude oil, the Sultanate is also rich of unconventional gas, mostly in the form of
tight gas, in the center of the country. With all the industry located along the coast in the Gulf of Oman or in
the Indian Ocean, OGC is to take a critical role to facilitate the development of the downstream sector
dominated by local companies from the LPG and NGL resources produced on the upstream side in joint
venture with international companies such as BP or Shell.
In this context, OGC started to work on a pipeline project to connect the Saih Nihayda gas processing
facility operated by Petroleum Development Oman (PDO) with the Port of Duqm where the other State-
owned Oman Oil Company (OOC) is working on a greenfield petrochemical complex, adjacent to refinery.
Initiated in 2012, OGC completed the front end engineering and design (FEED) work end of 2013. From
this FEED work, the Duqm gas pipeline should have a 36-inch diameter and should run along
the 230 kilometers between Saih Nihayda and the industrial free zone in the Port of Duqm on
the center of Oman.
In 2013, OGC started the pre-qualification of the potential engineering companies to bid for the
EPC contract. The call for tender was released earlier this year inviting contractors to submit their technical
and commercial bids in August 2014.
Estimated to require $220 million capital expenditure, the Duqm Gas Pipeline project should be awarded by
the end of 2014. Expected to start operations in 2016, it appears now that Oman Gas should turn on stream
its Duqm Gas Pipeline project between PDO Saih Nihayda and OOC Duqm Petrochemical complex in 2017.

2- ORPIC weights options for Liwa Plastics EPC contracts
The engineering company CB&I is about to complete the front end engineering and design (FEED) of
the petrochemical complex planned by the state-owned Oman Refinery and Petroleum Industries Company
(ORPIC) in Al-Liwa, near by Sohar in the north of Oman. As all the other countries in the Gulf,
the Sultanate is looking for building up added value locally in integrating more and
more downstream transformations.
With the Liwa Plastics project, Oman is posting its
intention to prepare ground for the development of the
manufacturing industry. To be connected to the Sohar
refinery, the Liwa Plastics project will multiply the
domestic production seven times to reach 1.4 million
tonnes in 2018. Budgeted to $3.6 billion capital
expenditure,
the Liwa Plastics project covers three main parts:
- Fahud gas field production
- 300 kilometers export pipeline to Sohar
- Al-Liwa petrochemical complex
Benefiting from parallel supply in gas from Fahud and in naphtha from the Sohar refinery, ORPIC and
CB&I selected a mixed steam cracker to produce ethylene, propylene, by-products and derivatives.
With a capacity of 800,000 tonnes per year (t/y) of ethylene, this mixed cracker will produce:
- 300,000 t/y of high density polyethylene (HDPE)
- 500,000 t/y of linear low density polyethylene (LLDPE)
- 215,000 t/y of polypropylene
- 40,000 t/y of methyl tertiary butyl ether (MTBE)
- 45,000 t/y of Butane-1
ORPIC is currently working on the different scenari to organize the call for tender to sanction
Liwa Plastics engineering, procurement and construction (EPC) contract. The first option is to
launch only one bid for the whole Liwa Plastics project EPC contract
The second option is break up the Liwa Plastics project in three EPC contracts for the:
- Mixed steam cracker with offsites and utilities
- Polyethylene and polypropylene units with offsites and utilities
- Natural gas liquids (NGL) separation with offsites and utilities
The third option is considering six EPC packages covering: - Mixed steam cracker
- Polyethylene units
- Polypropylene unit
- NGL separation
- NGL pipeline
- Offsites and utilities
In parallel to this evaluation, ORPIC is proceeding to the pre-qualification of the potential bidders for these
different packages. Depending on the potential bidders response ORPIC will select the best scenario to call
for tender the Liwa Plastics project on early 2015 in expecting the first production by 2019.

3- BP mulls over world-scale petrochemical complex
The UK-based international oil company BP is considering to build
a greenfield acetic acid plant at Duqm in the south of Oman using
newly developed SaaBre technology. For years BP is well known to
have concentrated its capital expenditure and technical expertise on
the upstream sector considering that downstream activities do not return
same profitability. But low standing prices on gas and technology may
change the name of the game.
End of last year BP and its local partner, the Oman Oil Company
(OOC) decided to invest $16 billion capital expenditure in the
exploration and development of the Khazzan and Makarem tight gas
project in the famous Block 61. With this project, Oman will become a
large producer of natural gas. But the Sultanate strategy is to primarily
to monetize this gas locally through a still-to-be developed
petrochemical industry.
Since the Block 61 is located right in the center of the country, Oman is
planning a large pipelines system to supply future industrial cities. As the nearest main city with deep water
access to the sea Duqm has been selected as the first location to convert this gas.
Due to become one of the largest industrial city in Oman with multiple projects including refineries,
petrochemical complex and import-export terminal of hydrocarbon products, Duqm offers the best
opportunity to BP settle its greenfield acetic acid project.
Acetic acid is one of the fundamental building block of the petrochemical industry as it is used
for adhesives, paints, solvents and to produce purified terephthalic acid (PTA), one of the most
common polymers at the source of the multiple forms of polyesters.
As all the other countries in the Gulf looking for jobs creation industries the petrochemical sector is strategic
for the Sultanate of Oman. Each $ billion invested in the downstream sector is generating four times more
jobs than the same $ billion spent upstream in the oil and gas exploration -production.
In proposing such a project BP is optimizing the local value of its investment in Oman. In addition, BP will
introduce with this Duqm Acetic Acid project its proprietary technology called Duqm Acetic Acid project .
Presented in November 2013, the SaaBre patented process is able to convert synthetic gas into acetic acid
without requiring methanol and saving the carbon monoxide (CO) purification operation.
Based on three-phases process, the BP SaaaBre technology avoids the conventional methanol carbonylation
operation and related costs. Overall BP SaaBre patent is reducing the capital intensity in the production of a
critical petrochemical product as acetic acid can be.
In introducing it in Oman where it can benefit from a competitive price of the natural gas as feedstock,
BP provides Oman with the guarantee of a long standing competitive advantage all along its
downstream petrochemical industry, in beginning with this $1 billion Duqm Acetic Acid project expected to
come on stream in 2019 .

4- PDO to decide on Rabab Harweel Integrated Project
The national oil company (NOC) Petroleum Development of Oman (PDO) made the final investment
decision (FID) on the Rabab Harweel Integrated Project (RHIP) in the South of Oman.
Following BP‘s decision to go ahead with the giant Khazzan and Makarem tight gas project in center
of Oman, Sultanate Government is gearing up all
projects related to gas production in order to support
its program on downstream side requiring more
power generation and petrochemical transformations
In one year only, Oman is targeting to increase
its natural gas production by 10% from 103
million cubic meters per day (cm/d) in 2013to 114
million cm/d in 2014. This growth will be
supported by the exploration of new fields,
especially of unconventional gas such as in the
Block 6 and Block 61, and the deployment
ofenhanced oil and gas recovery
(EOR)techniques to boost the production from
existing fields such as Harweel with
theRabab follow-up, also called RHIP.
Through the operating ompanies PDO,Occidental
Petroleum Corporation (Oxy) fromUSA and PTT
Exploration and Production TTEP) from Thailand,
Oman is operating only 18 fields of non-
associated gas.
Without the additional supply of natural gas from Qatar through the Dolphin pipeline
system, Oman should be in deficit of natural gas. Since most of the easily accessible gas is
already explored and in production, Oman is now focusing on the unconventional gas and
sour gas; that is where the Rabab follow-up project in the Harweel Cluster comes into the picture
for Omani Authorities for the Rabab Harweel Integrated Project (RHIP).
Harweel is in production since 2004, and in 2005 the UK-based engineering ompany Petrofac had
completed the first gas central processing facility (CPF) located in Kauther.With $1 billion capital
expenditure, the Rabab follow-up project is intended to add 5 million cm/d of natural gas. In place
for a decade, Petrofac completed the front end engineering and design (FEED) for the Rabab
Harweel Integrated Project. The main goal of this FEED work was for Petrofac to ropose PDO the
optimized scheme for the full field development of the Harweel Cluster.
As a result, PDO is planning to build for this Harweel expansion project:
- New gathering facilities
- New oil and gas processing facility
- Gas enrichment/sweetening plant
- New Rabab gas depletion facilities
- Gas injection facilities
After treatment the gas will be re-injected in theZalzala oil field.
The Rabab follow up project also includes the modifications of the Harweel processing facility.
For this Rabab follow up project, Petrofac is teaming up with the local contractor Galfar. After
this final investment decision (FID), PDO is expecting the Rabab Harweel Integrated Project
(RHIP) to start production in the south of Oman by 2019.

UAE to host The 5th
Opito Safety and Competency Conference (OSCC)
http://opito-oscc.com/
The Opito Safety and Competency Conference (OSCC 2014), under the theme ‘Leading from the
front-line,’ will take place on November 4 at the Fairmont Bab Al Bahr Hotel.
The gathering, which will also include training organisations, will examine how to improve
standards of safety and competency that will protect the workforce and the industry’s reputation,
Opito, as leaders in the safety revolution and proponents of change, will outline how the industry
can support a safer and more competent workforce, from the North Sea to Oman, Iraq, Malaysia
and beyond.
The 5th
Global OPITO conference will explore the dynamic of effective leadership and change
management on human behaviours in relation to safety. Failure can often be traced to individual
acts and behaviours which are influenced by culture which is, in turn, shaped by leadership. The
global oil and gas safety and competence conference will take a closer look at how leadership can
implement long-term high value change and ultimately a safer workforce.
High profile experts in their field and industry leaders will lead sessions which will:
• Highlight successful leadership strategies and their affects on the workforce well being
• Discuss how best to enact change and overcome resistance
• Examine the psychology of individual, team and organizational behaviours in relation to
decision making both in a steady state and during a crisis
• Explore how training and competence influence decision and behaviours
• Detail how OPITO products can form the bedrock of effective training and competence .
As the industry moves into even more challenging environments and emerging oil and gas
provinces in order to exploit hydrocarbons, the challenges of local content, skills shortages and a
fragmented approach to training and standards impact on our ability to ensure a safe and
competent workforce.
The OSCC is the only annual, global event wholly focused on debating the issues around safety
and competency in our industry in the way it relates to people. As such this platform provides a
unique opportunity to hear from safety leaders from other industries, learn about new thinking, find
out more about global standards and new training practices and network with industry decision-
makers who are committed to making the oil and gas sector safer for every employee, anywhere
in the world.

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 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 as Technical Affairs Specialist for EmiratesOil & Gas sector. Currently working as Technical Affairs Specialist for EmiratesOil & Gas sector. Currently working as Technical Affairs Specialist for EmiratesOil & Gas sector. Currently working as Technical Affairs Specialist for Emirates
General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Ma UAE operations base , Ma UAE operations base , Ma UAE operations base , Most ofost ofost ofost of
the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Throughgas compressor stations . Throughgas compressor stations . Throughgas compressor stations . Through
the years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructing of gas pof gas pof gas pof gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Manyipelines, gas metering & regulating stations and in the engineering of supply routes. Manyipelines, gas metering & regulating stations and in the engineering of supply routes. Manyipelines, gas metering & 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 lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a referocal authorities. He has become a referocal authorities. He has become a referocal authorities. He has become a reference forence forence forence for
many of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 02 September 2014 K. Al Awadi

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