1) A modest oil discovery was made offshore of Cebu, Philippines by Australian firm Gas2Grid. Initial tests indicate the well can produce 100-200 barrels per day. Further testing is needed to establish commercial production. 2) Saudi Aramco will not import term diesel contracts for delivery this year, removing major demand from Asian and Middle Eastern markets. This is due to new domestic refining capacity coming online in Saudi Arabia. 3) Halliburton opened a new unconventional resources technology center in Saudi Arabia in partnership with Saudi Aramco and a local university to develop solutions for Saudi and regional oil and gas challenges.

1. 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 09 January 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Modest Oil discovered in Philipines Cebu close to shore
By Gilbert P. Felongco Correspondent , GulfNews.com
A new oil discovery in Cebu declared by the Department of Energy is expected to augur well for the
Philippines, which is heavily dependent on imported oil. Australian firm Gas2Grid formally announced the
approval by the Energy Department of its application to declare the Malolos-1 oil well on the shore of Cebu
as an “oil discovery.”
“The company advises (announces) that the Philippine Department of Energy has formally recognised
Malolos-1 as an oil discovery and approved an extension of SC [Service Contract] 44 in order to conduct oil
production with the aim of establishing a commercial oilfield,” Gas2Grid said in an announcement. Earlier
Gas2Grid managing director Dennis Morton said application for declaration of an oil discovery is the first
step in appraising and developing the Malolos oilfield.
Commercial production
“When approved by the DOE it will provide an additional minimum period of 12 months to flow test the
well and establish commercial production. Following the completion of that work and with the DOE’s
approval of commercial status, the Malolos oilfield will enter a 25 year production phase.
Morton added that available technical data also indicated the possibly that Service Contract 44 “is much
larger Malolos oilfield than initially assessed.” Service Contract 44, covers 750 square kilometres in central
Cebu. Gas2Grid successfully perforated and flow tested two oil bearing sandstones in Malolos-1.
“Oil was produced on short term test at indicative production rates of between 100 to 200 barrels of oil per
day (bopd) ... Previously drilled wells, Malolos-1 and Malolos-4, recorded oil bearing sandstones over a 496

2. 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 2
metre (1,627 feet) vertical interval. The recent oil test production rates (between 100 — 200 bopd) confirm
Malolos-1 as an oil discovery well.
“We are confident that further testing of Malolos-1 will result in commercial oil production from a much
larger Malolos oilfield than currently assessed,” Gas2Grid said.
Although measurements and testing in Malolos-1 proved that the well can produce oil at rates between 100
to 200 barrels per day, “initial assessment of the oil volume potential within the Malolos oilfield is a
‘Contingent Resource’ oil in place in the two oil productive sandstones in the range of between a ‘Low
Estimate’ (1C) of 4 million barrels and a ‘High Estimate’ (3C) of 42 million barrels, with a ‘Best Estimate’
(2C) of 12 million barrels of ‘Total Oil Initially in Place’.”
Land proximity
Another advantage of the onshore Malolos oilfield is its proximity to land which makes transporting its
products and establishing a pipeline highly feasible and commercially viable. Most of the oilfields in the
country are located far offshore and required relatively bigger investments in terms of infrastructure.
Little is known publicly concerning the discovery but a July 18, 2013 service contract for Malolos 1,
provides the following description: “The Malolos Oil Field is located some eight kilometres by road from
the Cebu’s western coast. Oil transportation options from the Malolos Oil Field include road transport by a
new, all weather, concrete road from the well site to coastal port options at nearby Aloguinsan (8 kms —
less than 10 minutes by road) or the larger, established port of Toledo (32 kms — 30 minutes by road). One
option would be to load the oil onto marine transport for sale either to one of two oil refineries located in
Batangas, Philippines (approximately 500 kms north) or in Singapore.” Although there had been gas finds in
the Philippines, most of the wells are located offshore and require considerable investments to extract.
Company Profile
The Company's strategy includes conventional petroleum exploration for oil onshore Cebu in the
Philippines where it has produced oil from two separate reservoir intervals in the Malolos oil field. This oil
field requires further appraisal and development. The Company also plans to build and operate gas fired
electricity generation plants in the Philippines fuelled by any gas discovered. The Company is also active
within the Aquitaine Basin, south-west France where it has one existing exploration licence and three new
licence applications which are currently being processed by the French Government. The Board of
Directors brings extensive experience in conventional oil and gas exploration and development combined
with expertise in drilling, production and power station ownership and operations. The Directors also have
extensive experience working in the Philippines and France.

3. 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 3
Aramco to skip diesel term imports
State oil giant Saudi Aramco will skip diesel term imports on a delivered basis, removing a huge chunk of
demand from the Asian and Middle East oil markets and potentially reducing refinery margins, industry
sources said on Wednesday.
The company is skipping term imports of diesel on a delivered basis this year for the first time after years of
tying up contracts with sellers to import at least about 2.2 million to 3 million barrels a month of the oil
product. Cargoes chartered on a delivered basis means the seller usually pays the freight charges to deliver
cargoes to the buyer.
Aramco might instead focus on tying up term contracts on a free-on-board (FOB) basis with sellers like
India's Reliance Industries, though this is not certain and overall term volumes will be much less than past
years, the sources said. The company usually ties up term contracts on both delivered basis and on a FOB
basis. The move is a further sign that top oil exporter Saudi Arabia is becoming self-sufficient in meeting its
diesel needs after the start-up of the new Saudi Aramco Total Refining and Petrochemicals Co (Satorp)
refinery in Jubail, a joint venture with Saudi Aramco and Total.
"Once Satorp started production, it really changed the dynamics," a Gulf-based trader said. Many refineries
in Asia and the Middle East depend on Saudi Arabia's diesel imports to absorb excess cargoes in the region.
With a significantly reduced demand from Saudi Arabia and even exports from its refineries, traders are
worried the supply glut in Asia will pressure refinery margins.
Satorp, the first of a trio of 400,000-barrel-per-day (bpd) refineries due to open over the next four years,
started diesel production in the second half of last year and has exported the fuel to Kenya. It is also
expected to meet domestic diesel needs from the new refinery. Exxon Mobil Corp earlier sold gasoil cargoes
through a rare term tender from its joint-venture Saudi Aramco Mobil Refinery Co (Samref) refinery in
Yanbu.
Gasoil from Samref, which is a joint venture between Exxon Mobil and Saudi Aramco, is usually sold
within Saudi Arabia, with occasional spot cargoes offered for exports. Saudi Aramco imported on average
about 7.5 million barrels of diesel each month from January to October last year, with record volumes of
nearly 11 million in July, government data published from 2002 through the Joint Organisations Data
Initiative showed.
Of this, the company normally buys 2 million to 3 million barrels in the off-peak period and about 5 million
to 6 million in the peak summer period through its delivered term contracts, with the rest on an FOB basis or
in the spot market, traders said.
IMPACT
While a major term diesel buyer is removed from the market and could pressure refinery margins in the
short term, the long-term impact remains to be seen, traders said. "They don't normally buy a lot of cargoes
during winter, so they probably can fill their shorts from the new refineries or other existing refineries, but
once it's summer or if there are any refinery issues, then we might see a buying spree by them," a Singapore-
based trader said.
Saudi Arabia has historically been short of gasoline and gasoil. Its petro-dollar fuelled economy and
growing population have rapidly driven up internal demand, especially when power generation surges in the
hot summer months from May to August. - Reuters

4. 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 4
Halliburton inaugurates technology center in Saudi Arabia
By PennEnergy Editorial Staff
Halliburton (HAL) announced today the opening of its new Unconventional and Reservoir
Productivity Technology Center at King Fahd University of Petroleum and Minerals (KFUPM)
located in Dhahran Techno-Valley. The new center enables Halliburton to provide state-of-the-art
research and development solutions for conventional and unconventional reservoirs addressing
challenges both in the Kingdom and regionally.
The center provides a base to develop strong relationships with local universities like KFUPM to
develop technology which is expected to lead to employment and training opportunities for Saudi
technicians and university graduates.
The Halliburton Dhahran Unconventional and Reservoir Productivity Technology Center will
support the development of unconventional reservoir productivity practices in the Kingdom.
Collaboration between Saudi Aramco and Halliburton research and development scientists,
together with the engagement of KFUPM researchers and Halliburton’s diverse unconventional
expertise, will allow solutions to be developed locally and quickly implemented in the Kingdom’s
fields.
Halliburton’s long history in the Kingdom and the establishment of this multi-million dollar
technology center demonstrates Halliburton’s continued commitment to investment in the
Kingdom and to the delivery of the latest technology and expertise. The center is expected to
provide technology and solutions to existing and future partners in the region and around the
globe, contributing to the development of local workforces and national economies.
Halliburton provides a wide range of products and services to Saudi Aramco and currently
employs more than 3,000 people in the Kingdom.

5. 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 5
Development of KSA mining sector creates jobs for Saudis
http://www.saudigazette.com.sa
The construction of the Saudi mining sector serves the country and citizens over the long term and
contributes to creating thousands of jobs for the people of the Kingdom, especially in the technical jobs, as
well as investment opportunities for citizens and international companies, Saudi Minister of Petroleum and
Mineral Resources Ali Al-Naimi said Wednesday during the inspection tour of Ma’aden Company projects
in Ras Al-Khair City, Eastern Province.
He said “these mega projects contribute to economic diversification, achievement of high returns for
shareholders and investors, transfer and localization of technical professions with high skills. The mining
industry constitutes an important basis for the diversity of the economy and the development of new
industries based on their outputs.”
He was accompanied by Adviser to the Ministry of Petroleum and Mineral Resources Prince Faisal Bin
Turki Bin Abdul Aziz, and Adviser for Companies Affairs in the ministry Abdulrahman Muhammad
Abdulkarim.
During the tour, they got acquainted with the production lines, manufacturing units and vital utilities for the
company that form integrated mining industries that the company is developing so as to enable the growth
of its mining investments. It is also building a base for advanced industries for the transfer of technology
and increasing the added value for its shareholders.
The tour included the aluminum smelter, whose production capacity reaches 740,000 metric tons of
aluminum annually. Production began at the end of 2012. The smelter provides big opportunities for
manufacturing industries in the aluminum sector. It provides its clients with various shapes of metals like
aluminum bars and blocks and smelted aluminum, among others.
The minister and his delegation were acquainted with the progress of work in the rolling of aluminum sheets
belonging to Ma’aden. Its test run began at the end of 2013 in preparation for the start of commercial
production in the second quarter of 2014. The production capacity will reach 380,000 tons annually. It is the
only factory of its kind in the region, and will be one of the most advanced technologically in the world.
They also saw the ongoing construction operations in the sheets factory necessary for the automobile
industry. About 56 percent of the project has been completed. Production is expected to begin at the end of
2014 with a production capacity of 100,000 tons annually. Meanwhile, the mining operations in Al-
Be’aithah Mine have started as planned. About 4 million tons of bauxite will be transported annually by
train from the mine to Ras Al-Khair.
The tour included the alumina refinery. Over 77 percent of the project has been completed. Its production
capacity will reach 1.8 million metric tons annually. Production will begin at the third quarter of 2014.
Ali Al-Naimi

6. 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 6
Al-Naimi and his entourage visited also the phosphate complex and the support utilities. The production
capacity for the phosphate project reaches three million tons annually. The tour also included Ras Al-Khair
Port that has six wharves for the export of Ma’aden products. The port began work in February 2011. They
also saw Ma’aden village residential project in Ras Al-Khair that comprises 2,509 housing units.
Al-Naimi also met with several youths of Ma’aden. The number of employees in Ma’aden in Ras Al-Khair,
including engineers, technicians and employees, have reached 4,000, with 70 percent Saudi nationals. Of
these, 1,100 were trained within the Kingdom, while 300 were trained abroad .

7. 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 7
Hyundai Wins $6bn Kerbala Refinery DealBy John Lee. http://www.iraq-businessnews.com/
A group of companies led by Hyundai Engineering & Construction has won a $6.04-billion contract to
build the new 140,000-bpd Kerbala oil refinery.
The Iraqi cabinet approved the deal between the Oil Ministry’s State Company for Oil Projects (SCOP)
and the consortium on Tuesday. Construction is to be completed within 54 months. In June, French
company Technip won the contract for project management consultancy (PMC) services for the
engineering, procurement and construction (EPC) phase of the Karbala refinery.
Gas Shortage Serious, Iranian Official
Gas shortage is serious and in the event of falling gas pressure, NIGC has no other choice but to halt natural
gas delivery to CNG stations. Speaking in a televised program last night, NIGC’s managing director, Hamid
Rerza Araqi, said the volume of gas consumption has gone up by 50 Mcm/d against corresponding period
last year.
“Gas consumption stood at 484 Mcm yesterday”, the official said adding rising gas consumption by
household sector either has restricted the amount of gas delivery to power plants or has brought it to halt. He
noted that gas shortage has forced Petroleum Ministry to raise the volume of diesel delivery to power plants
to 120 million liters per day on average.
According to Araqi, unannounced visits to some ministries showed that some state buildings don’t turn off
their hitting systems after working hours ignoring a bylaw issued by vice-president.
In the meantime, Iran’s Petroleum Minister Bijan Namdar Zanganeh said yesterday that the country runs
short of 160 Mcm/d of gas, calling on Iranians to reduce gas consumption. “With efficient gas use, all
people will be able to benefit from natural gas and industries will keep producing,” the minister said.
Zanganeh said restrictions are needed to be imposed on some sections so that gas flow would not stop.
He said Petroleum Ministry has delivered oil products to power plants in order to compensate for the
shortage. The minister noted that six phases of South Pars gas field must have become operational, but it has
not happened. Zanganeh said Petroleum Ministry is currently focusing its attention on the development of
South Pars. - Shana

8. 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 8
Brent edges up towards $108 on supply concerns; stronger dollar weighs
http://uk.reuters.com/
Brent crude rose towards $108 a barrel on Thursday, supported by continued concerns over supply from the
Middle East and North Africa, but gains were capped by a stronger dollar.
Brent has traded in a tight range this week as investors balanced expectations of rising supply from Libya
with worries over increased tensions between government forces and armed rebels in the North African
country. "Brent looks relatively stable at the moment compared to WTI," said Ric Spooner, market strategist
at CMC Markets in Sydney. "Brent is hanging around its 200-day moving average at the moment, and that
is creating some nausea for investors, who are looking for direction in the market."
Brent crude for February delivery was 35 cents higher at $107.50 per barrel at 0555 GMT, after settling 20
cents lower. U.S. oil was up 29 cents at $92.62. The contract shed $1.34 to end at a six-week low on
Wednesday as a large build in crude stockpiles at the contract's delivery point in Cushing, Oklahoma,
weighed on the market.
While the Cushing stocks rose, total U.S. crude stocks fell by 2.7 million barrels in the week to Jan. 3, data
from the U.S. Energy Information Administration (EIA) showed. Overall U.S. crude inventories fell for the
sixth straight week, totalling 33.5 million barrels for the period, the largest six-week drop since October
1990. Still, the commercial stocks remain near historical highs due to growing U.S. oil output.
SEE YOU IN COURT
Libya said Wednesday it will stop doing business with and take to court any foreign firms trying to buy oil
from eastern ports seized by armed protesters. The statement came after tensions built this week with rebels
inviting foreign firms to buy crude from them and the Libyan navy firing at a tanker it said was trying to
load oil illegally. That raised new worries about the country's exports despite a return of some of its
production.
Brent prices fell as much as $6 per barrel last week, after news that Libya would restart its key El Sharara
oil field. The country is currently producing around 650,000 barrels per day (bpd) of oil, of which 510,000
bpd is being exported, Oil Minister Abdelbari Arusi told Reuters on Wednesday.

9. 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 9
Brent prices have been supported by unrest and supply disruptions in Libya, South Sudan and Iraq in recent
months. "As the Libyan conflict is the least violent, and given its political and economic nature, a bargain
solution is not entirely off the cards yet," analysts at JBC Energy consultancy said in a note.
Gains in Brent were limited by a stronger dollar, which hit a seven-week high against a basket of major
currencies. A stronger dollar makes commodities priced in the greenback more expensive to holders of other
currencies.
Investors will look to U.S. non-farm payrolls on Friday for signs of continued recovery in the world's largest
economy, which may bolster speculation of imminent cuts in the Federal Reserve's commodity-friendly
stimulus programme.
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Service
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 &Oil &Oil &Oil & Gas sector.Gas sector.Gas sector.Gas sector.
Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ withCurrently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ withCurrently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ withCurrently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with
external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostexternal voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most
of the experience were sof the experience were sof the experience were sof the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipelinepent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipelinepent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipelinepent 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 theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in theNetwork Facility & gas compressor stations . Through the years , he has developed great experiences in the
designing & constructingdesigning & constructingdesigning & constructingdesigning & constructing of gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulating stations and in the engineering of supplyating stations and in the engineering of supplyating stations and in the engineering of supplyating stations and in the engineering of supply
routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreementsroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements
along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasalong with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas ConferencesConferencesConferencesConferences
held in the UAE andheld in the UAE andheld in the UAE andheld in the UAE and Energy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 09 January 2014 K. Al Awadi