New base special 21 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,
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 21 April 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
UAE Law to rationalise energy sources in the pipeline: Minister
By WAM
Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy has unveiled a new
draft 'Rationalisation Law’, being prepared in cooperation with the Ministry of Environment and
Water ahead of referring it to the Cabinet this year for endorsement.
The law will be endorsed as a balanced policy to help a consumer understand his important role in
preserving of energy sources and also helps the government to study its future options, as well as
continue in 'awareness initiatives' with all bodies and institutions in a campaign to reduce energy
and water consumption in conjunction with the Federal Water and Electricity Authority that targets
housewives, worshippers, schools and major industrial facilities.
In an exclusive interview with Emirati anchor, Khadijah Al Marzouei during the ‘'Emirates Tonight’
Programme on Dubai Radio, Energy Minister said, "The general features of the country's general
strategy in the field of energy, focuses on resources and future challenges, as well as
rationalisation and consumption patterns, in addition to the focus on the role of technology, green
economy and buildings on the preservation of environment."
He referred to the electricity consumption, tariff, and the government subsidy, internal and external
investment, future plans, alternative energy and shale oil and others, emphasising that the energy
and natural gas sector is deemed vital since the inception of the UAE, whose government-led by
the late Sheikh Zayed bin Sultan Al Nahyan and the Rulers of the Emirates, took interest in the
sector to ensure decent life for the citizen.
Al Mazrouei pointed out the importance of diversifying energy sources and use of fossil gas at
average of 70 per cent to 75 per cent of energy consumption and 25 per cent of nuclear energy,
five percent of renewable energy by 2020, expecting that the increase in energy sources through
liquefied gas would be local and imported gas, while the third source will be natural liquefied gas,

being the most expensive among the three sources. The liquefied gas is being imported through
Jebel Ali Port at a capacity of three million tonnes annually. He added that work is underway to
establish a new port in Fujairah at a threefold capacity of energy compared to that of Dubai, with
additional capacity of nine million tonnes of liquefied gas from Fujairah Port.
Tenders will be invited to this year.
Al Mazrouei said that there are no signs of delay to 2017 date slated for the operation of the first
plant, adding that the fourth plant will start operation by 2020. It will contribute 5,600 MW of
electric energy which represents, more or less, 25 per cent of the consumption of electricity sector
in the country.
Renewable energy
Regarding renewable energy, the minister pointed out that the year 2013 witnessed the launch of
two important projects ‘Shams’ which is deemed the biggest of its kind in the field of using the
technology in solar energy generating and storage, with a capacity of 100 MW in the Western
Region.
The second project, ‘'the Mohammad Bin Rashid Al Maktoum Solar Park', with a capacity of 13
MW, in addition to another project with a capacity of 100 MW in Dubai. He added that in order to
contribute to the increase of renewable energy ‘Masdar’ is working is studying multiple projects,
whether in Abu Dhabi or Al Ain.
Answering a question on the impact of extraction of shale oil on the international prices, the
minister denied this hypothesis on the ground, citing that there three major markets such as the
gas heading to Asia, whose prices are dubbed the highest prices in the world at a cost of $14-16
cubic feet, while gas coming to Europe ranges between $10 -11and there is still a kind of
uncertainty about the quantities of the exported shale gas in the US and Canada, expecting that
there will be an increase in the amount of gas flow in the market after 2020 which would reduce
the rise of prices.
Experts anticipate that the average of price will be between $ 11 to 12 and the third market is
American market, whose prices ranges from between $5- 3.5.
Power and prices
He also commented on the difference between oil and gas usage and their importance in power
generation, energy minister said: ''When oil prices were cheap, it was an option for old stations but
in the light of the environmental effects and high prices. 'Diesel has become the last choice for
power generation."
UAE Nuclear Plant under constructions Dubai LNG Terminal

Al Mazrouei said there are doubts about the exports of quantities of shale gas in US and Canada,
expecting that there will quantities of gas flow to the market after 2020, hence, reducing hike of
prices. Experts expect that average prices will range between $11- 12 for liquefied gas, but not
less than $10.
Al Mazrouei added, "When the oil prices were lower, the burning of oil or diesel was an option for
old fuel station, but with environment effect and higher prices, the use of diesel has become the
last option and expensive for generation of energy.
"We are today and within the UAE's policy don not burn any liquids, while gas is environmental-
friendly. When new projects are set up, we will be forced to burn diesel even in peak periods and
summer."
The minister expected the growth and demand rates for oil would grow in coming years by 1 per
cent annually, especially the world consumes today about 90 million barrels, of which 30 million
barrels are exported through OPEC. This will reduce a bit with appearance of new shale oil or oil
from non OPEC states.
He added that the current prices, which have been ranging around $100 per barrel for over five
years, are logical, but with the growth rates increasing by 5- 7 per cent in China and India, the
demand for oil will rise. The local demand will also rise, Al Mazrouei continued, adding that the

capacity of the UAE oil refineries rose from 500, 000 barrels per a day to 920, 000 million barrels
per a day.
Regarding the production increase and reduction of government subsidy and his opinion about the
government subsidy, the minister said, "The subsidy does not create an economy. “When the
subsidy continues, the economy cannot compete at world level at a time the UAE government
vision aims to become one of the world's solid economies based on sustainability and economic
growth."
Sustainability and subisidies
He added, "When we look at sustainable economies, we realise that they do not subsidise energy
as we have today at a time we face general culture challenge that we should economise as the
growth and progress do not go alongside extravagance."
Al Mazrouei said the UAE government would continue to subsidise since the consumption is
logical, citing that the consumption rate among Emiratis, expatriates, economic and industrial
sectors exceeds the world's rates by threefold- this incredible and unsustainable. He added that
the subsidy percentage ranges from 50- 85 per cent in some sectors. "If such subsidy is
associated with consumption guide, it will continue. But with huge wastage compared to
international standards, I repeat this is absolutely incredible."
About internal and external investments, the minister said the UAE is one of the top countries in
the area of energy: oil and gas, as well as investments in the field of electricity generation in many
countries worldwide. He referred to the investments of International Petroleum Investment
Company (IPIC) in the fields of fuel stations since 1970s, exploration and production of oil. It
bought in partnership with Total, SABSA company, which was owned by the Spanish government.
Mubadala, which invests in the field of exploration and production in three South East Asian
countries, develops gas fields and sells it in Indonesia, Malaysia, Vietnam and a number of GCC
states. Mubadala owns huge investments in Qatar, Sultanate of Oman and the Kingdom of
Bahrain. Meanwhile, TAQA , the world's sixth largest developer of electricity privatisation projects,
invests in electricity generation in Morocco, where it owns 45 per cent of the electricity. It also
invests in many countries in Africa and the world.
Al Mazrouei added within a year he worked under Vice- President and Prime Minister and Ruler of
Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, he has learnt and still learning a lot.
The minister also cited his tenure at Adnoc, where he had different local and international
experiences, adding that he deems General Sheikh Mohamed bin Zayed Al Nahyan, Crown
Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, a role model
and a second father, thanking all Their Highnesses, Members of Supreme Council and Rulers of
Emirates and the late Sheikh Zayed bin Sultan Al Nahyan, the founding father of the UAE, who
made the UAE one of the advanced countries.
He thanked. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential
Affairs, on learning much from him, urging youth to persevere and tackle challenges with huge ambitions.
"No one imagines UAE would turn from an oil producer country into an industrial state, whose companies
manufacture special parts of IPAD, Airbus, Boeing and BMW vehicles", Al Mazrouei concluded.

KSA taps the sun to meet a third of its energy needs
www.saudigazette.com.sa
Saudi Arabia plans to invest $109 billion to produce 41 gigawatts (GW) of solar energy by 2032, which is
almost 30 percent of its total energy requirement by that time. Over the next two decades, the government
seeks to establish energy generation projects, which runs on photovoltaic cells (PV cells) with a capacity of
16 GW.
In addition, it will also facilitate
projects that will make use of
energy concentrate with a capacity
of 26 GW. These initiatives aims
to boost the Kingdom’s potential
for becoming the largest producer
of solar energy in the world,
organizers of the Saudi Energy
2014 event said on Sunday.
Against this backdrop, Saudi
Energy 2014 —the International
Trade Exhibition for Electricity,
Power Generation, Alternative
Energy, Water Technology and Lighting —will be held in the Kingdom to spotlight the latest products and
services for the power sector.
Held under the patronage of the Ministry of Water and Electricity and organized by the Riyadh Exhibitions
Company and Informa Exhibitions, Saudi Energy 2014 will take place on May 26-28 at the Riyadh
International Convention and Exhibition Centre.
With regional investments in the energy sector at its peak, Saudi Energy 2014 will be a marketplace for
specialized and related industries and companies to promote their products and services. It will also be an
opportunity for them to explore regional market and penetrate into the lucrative Saudi Arabian market.
The event is one of the most functional exhibitions in the region that covers all segments of the energy
sector, including electricity generation and distribution, alternative and renewable energy technologies,
modern lighting products and technologies, and water and water resources management technologies.
“The Kingdom of Saudi Arabia is witnessing a major development in the area of alternative energy, with
strategic plans being implemented and key projects being undertaken to meet the increasing demand for
energy,” said Fahad Al-Athel, Deputy General Manager, Riyadh Exhibitions Company.
“Saudi Energy 2014 will make a definite contribution towards this transformation by offering a gateway for
international experts to network with local players to discuss the latest industry trends, explore business
prospects and opportunities of mutual cooperation,” he added. “The exhibition promises to be fruitful for
both exhibitors and visitors comprising government officials, contractors and consultants, developers and
investors, and engineers and technicians, to name a few.”
Saudi Energy 2014 will showcase the latest sector products, services and technologies to a large group of
professional visitors from Saudi Arabia and the region. The event will offer a chance to gain first-hand
experience in fresh technologies and new equipment and stay abreast with the industry and market
developments in the region. – SG

Xcite selected conceptual design to develop UK North Sea Bentley
Source : Xcite ERL
The Aberdeen-based Xcite Energy Resources Limited (Xcite or XER) company selected the
conceptual design to develop its heavy crude oil field, Bentley offshore the Shetland Islands in the
UK North Sea in combining a Teekay Sevan-type floating storage and offloading (FSO) vessel
together with Arup ACE steel frame platform.
Bentley was discovered in 1977 but was left undeveloped because of its 10°- 12° API heavy crude oil
throwing the production costs onto the upper level while the expected recovery rate remains uncertain.
Located 160 kilometers east of the Shetland Islands, Bentley belongs to the same basin as
Statoil-operated Bressay, eight kilometers in the north, as Enquest-operated Kraken, fifteen
kilometers west, and BP-operated Bruce field, twenty kilometers south-west.
As part of the Block 9/3b, Xcite was granted from a first licence as sole owner and operator in
2003. Since then Xcite implemented an exploratory and drilling program up to 2012 in order to
evaluate Bentley actual reserves and define the optimized strategy to develop it. As the first wells
drilled in Bentley confirmed the nature of the heavy crude oil, understanding its combination with
the associated gas and water was the preliminary requiste to further investment.
During this exploratory campaign, Xcite tested all the processes required for such heavy crude including:
- Oil – gas – water separation
- Demulsifier and defoamer
- Preparation and injection of the chemicals and diluents
- Downhole heating
- Pipeline flow assurance
- Crude oil blending

As a result of this campaign of tests, Xcite estimated to the recoverable reserves (2P) in Bentley
to 257 million barrels of oil out of the 909 million in-place reserves.
Xcite signed MOU with AMEC and Arup for Bentley
In order to optimize costs and first production, Xcite opted for a development in phases, Bentley
North, Bentley West and Bentley East-South.
For the Bentley Phase-1, Xcite signed in April 2014 series of Memorandum of Understanding
(MOU) with key partners to provide costs competitive solutions, with:
- Teekay Shipping Norway AS (Teekay) for the
supply of a cylindrical Sevan-type FSO
- Ove Arup Partners (Arup) for the design and
construction of a self-installing steel ACE platform
- Amec for the management, engineering,
procurement, construction and installation
In this concept, the Sevan FSO will be bridged to
the Arup ACE steel frame platform equipped with
20 slots with 4-5 laterals per well.
Xcite and Teekay-Sevan will work together to
carry out the front end engineering and design
(FEED) of the FSO, then to implement the
construction and installation. According to the MOU, Teekay will continue to support Xcite for the
operation and maintenance.
This Sevan FSO is due to stand on Bentley during all the phases that Xcite has planned to develop this
field and anticipated expansions. In signing the MOUs with Arup and Amec, Xcite intends to adjust the
basic design of its ACE steel platform to Bentley requirements in respect with the multiples processes to be
integrated in the topsides.
Because of its self-elevated design, the Arup ACE plaform is easy to tow, install, operate and
decommission. Even if Bentley appears as a complex heavy crude oil offshore field, the MOU signed with
Teekay-Sevan for the FSO and the tandem Amec-Arup for the ACE platform will give the opportunity to
Xcite to start the first phase on fast-track for a first production expected in by 2017 and to last 35 years.

French energy giants fuel UK double
By Roland Gribben | Telegraph
EDF is already the biggest electricity producer in Britain and next year Total will become the
leading oil and gas producer in the UK sector of the North Sea
Two French companies are on the brink of completing a unique business double in Britain. EDF,
the state-controlled power group, is already the biggest electricity producer and next year Total,
the nation’s flagship oil company, will become the leading oil and gas producer in the UK sector of
the North Sea.
The breakthrough is not the product of a strategy hatched in the Elysée Palace, Philippe Guys
assured The Telegraph , but pragmatic business. “I don’t know what EDF’s strategy is and we
started in the North Sea before they arrived,” said Total’s managing director for UK exploration
and production.
EDF currently produces around a fifth of the UK’s electricity and will increase its contribution if its
lead role in reviving nuclear power finally results in the construction of the £16bn Hinkley C
complex in Somerset.
Meanwhile, Total is on course to increase North Sea oil and gas production by a third to the
equivalent of 180,000 barrels next year and has stolen the limelight from rivals BP and Shell by
becoming the first major oil group to be licensed to explore for shale gas in Britain.
The arrival of Total as the leading North Sea producer is the more surprising given the size of its
exploration portfolio, but reflects a build-up of discoveries, acquisitions and a major £3.2bn gas
development west of Shetland.
The production slowdown and disposals by BP, Shell and other rivals also mean that mid-range
explorers have a more important role. Total, operating in the North Sea since 1987, has built on
the discovery of the Alwyn and Dunbar fields and the acquisition of Fina and Elf interests.
An artist s impression of the planned Hinkley Point
C power reactor An artist's impression of the
planned Hinkley Point C power reactor [SWNS]

“We’ve also been making small discoveries every two years or so and are looking at how we can
tie them in,” says Mr Guys, whose company will have eight drilling rigs operating in the North Sea
this year. The development of the Elgin-Franklin complex has also boosted Total, and Mr Guys
expects reserves to build up to 600m barrels of oil equivalent by 2017.
But consultants Wood
Mackenzie expect Total’s stay
at the top will be short-lived
as BP and Shell prepare to
benefit from their new
investment programmes. The
focus on Total is switching to
shale following the approval
of two licences, and Mr Guys
is giving a high priority to an
application for exploration
territory in the next round of
onshore licensing. He adds:
“There is considerable
geological potential in the
East Midlands area.”
He hopes President Hollande
will be influenced by the way
Britain is encouraging shale
development to lift a ban on
exploration in France,
although doubts whether David Cameron’s enthusiasm would influence the French president.
The cross-Channel entry fee into the UK economy for EDF has a bargain basement look when
measured against the projected new nuclear outlay. EDF, which has 5.8m customers, spent
£12.5bn to take over British Energy and its second- generation nuclear plants. It bought and then
sold network businesses in London, the South East and eastern England.
It has ploughed back all its operating profit into the UK business and overall has invested around
£3.5bn since 2011. Operating profits of £863m last year were driven by the best performance from
its eight nuclear plants in eight years.
EDF, regarded as the EU power broker because of its considerable nuclear capacity and
widespread customer network, has been able to add the UK to its “grid” because of the difference
in market climates between the two countries. The ease of entry into the UK is in sharp contrast to
the difficulties faced by companies wanting to break into a French market slow to embrace the
EU’s energy competition policy.
Vincent de Rivaz, head of EDF Energy, believes the company has made a considerable
contribution to averting electricity cuts that could result from the Hinkley delays, by extending the
operating lives of EDF’s seven advanced gas-cooled reactor stations. They will all still be
operating in 2023, when Hinkley is due to make its delayed debut.

Russia Writes Off N. Korea Debt to Facilitate Gas PL to S. Korea
Reuters
Russia's parliament has agreed to write off almost $10 billion of North Korea's Soviet-era debt, in a
deal expected to facilitate the building of a gas pipeline to South Korea across the reclusive state.
Russia has written off debts to a number of impoverished Soviet-era allies, including Cuba. North
Korea's struggling communist economy is just 2 percent of the size of neighboring South Korea's.
The State Duma lower house on Friday ratified a 2012 agreement to write off the bulk of North Korea's
debt. It said the total debt stood at $10.96 billion as of Sept. 17, 2012.
The rest of the debt, $1.09 billion, would be redeemed during the next 20 years, to be paid in equal
installments every six months. The outstanding debt owed by North Korea will be managed by
Russia's state development bank, Vnesheconombank.
Russia's Deputy Finance Minister Sergei Storchak told Russian media that the money could be used
to fund mutual projects in North Korea, including a proposed gas pipeline and a railway to South
Korea.
The two Koreas remain technically at war and are separated by one of the world's most militarized
frontiers. Parts of the international community have been seeking to re-engage with North Korea amid
hopes that the reclusive state's government would seek ways to end years of isolation and poverty.
Russia's state-owned top natural producer Gazprom, has long planned to build a gas pipeline via
North Korea to South Korea with a view to shipping 10 billion cubic meters of gas annually.
Moscow has been trying to diversify its energy sales to Asia away from Europe, which, in its turn,
wants to cut its dependence on oil and gas from the erstwhile Cold War foe. Moscow aims to reach a
deal to supply gas to China, after a decade of talks, this May.
Three routes options to explore

ONGC, RIL, BG to Abandon Tapti Gas Field
Source: ONGC
Joint venture partners in the Tapti field of the Panna-Mukta-Tapti consortium will abandoned the
field in a year's time because of its wells' poor output, reports Business Standard newspaper.
Partners in the field are Oil and Natural Gas Corporation (ONGC) with 40 per cent stake and
British Gas India and Reliance Industries (RIL) with 30 per cent stake each. It will be the first
offshore field to be abandoned in India, says Business Standard.
"The JV partners witnessed poor performance from the newly drilled wells. Re-evaluation of the
field showed a significant drop in reserves. The field is moving towards early abandonment," RIL
said in a presentation to analysts after the company's fourth-quarter results.
The JV (joint venture) partners have submitted their proposal to the Ministry of Petroleum and
Natural Gas for early abandonment of the field. "The proposal is under review with the
Government of India," RIL added.
The Panna and Mukta fields are primarily oilfields while Tapti is a gas field.
During the 2014 fiscal, the Tapti field produced 0.28 million barrels of condensate and 27.3 billion
cubic feet of natural gas, a decline of 48 per cent and 38 per cent respectively year-on-year. "The
decrease is due to the underperformance of newly drilled wells in the previous year as well as on
account of natural decline in the existing wells," Business Standard quotes RIL as saying.
Consortium sources the newspaper the abandonment or decommissioning of the field would cost
around $300-350 million and the filed would be abandoned by June 2015.

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 asOil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working as
Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ witTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ witTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ witTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forh external voluntary Energy consultation forh external voluntary Energy consultation forh external voluntary Energy consultation for
the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas comprManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas comprManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas comprManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedessor stations . Through the years , he has developedessor stations . Through the years , he has developedessor stations . Through the years , he has developed
great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supplyof gas pipelines, gas metering & regulating stations and in the engineering of supply
routes. Many years were spent drafting, & compiling gas transportroutes. Many years were spent drafting, & compiling gas transportroutes. Many years were spent drafting, & compiling gas transportroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs foration , operation & maintenance agreements along with many MOUs foration , operation & maintenance agreements along with many MOUs foration , operation & maintenance agreements along with many MOUs for
the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChanneChanneChanneChannelslslsls ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 21 April 2014 K. Al Awadi

New base special 21 april 2014

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (10)

Similar to New base special 21 april 2014

Similar to New base special 21 april 2014 (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base special 21 april 2014