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NewBase 23 February 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Lebanon prepares tender for exploration rights to its vast natural gas reserves
www.thenational.ae/business/ , Adam Bouyamourn
An estimated 96 trillion cubic feet of natural gas is sitting under Lebanon’s waters, but a tender for
gas companies to build exploratory wells has hit one political snag after another. Yet as a new
coalition government with a new energy minister takes power, it looks more likely that Lebanon’s
auction of exploration rights will proceed on schedule, with the first blocks set to be sold on April 10.
For 315 days spanning this year and last, Lebanon was without a government. The appointment
of a new government is “a big step forward”, said Catherine Hunter, who leads the energy team at
IHS Global Insight, a think tank. “It allows some of the outstanding regulatory issues to be
resolved … [but] with
new faces involved,
there’s still some
potential for slippage.”
Mubadala Petroleum,
Rosneft and
ExxonMobil, along with
30 other companies,
expressed interest in
exploratory drilling early
last year, but a
deadlocked parliament,
in which Hizbollah-
backed members hold
veto power, failed to
pass required
legislation. And further
political instability could
yet affect the timing of
the auction, Ms Hunter
said, because
Lebanon’s cabinet is required to sign off on several additional technical issues.
Discoveries of natural resources could be a boon to Lebanon’s economy, which has suffered as
conflict in Syria spills over into the country. Tourism has dipped following a spate of car bombings
in the capital, with occupancy rates falling and room yields dropping by 21 per cent in 2013 on the
previous year, according to data from Byblos bank.
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
“[It’s] difficult to say what the impact of gas discoveries will be for this decade,” said Ms Hunter,
but “natural gas potentially provides a means to reduce oil product imports and boost power
generation capacity if the volumes discovered are commercially viable”.
Naji Abi Aad, the chief operating officer of PetroLeb, a company that intends to bid to manage
areas of gas exploration, was optimistic about the impact of discoveries. “According to the various
seismic studies and interpretations, Lebanon has very promising petroleum prospects in its
territorial waters,” he said. “We are confident that ... developing [the country’s resources] will bring
economic prosperity to Lebanon and its population.”
A spokesman from the Dutch oil company Shell, which has prequalified to bid to explore
Lebanon’s waters, said: “Shell looks at business opportunities in Lebanon in the same way as any
other potential interest. “We review our growth portfolio on a regular basis and do not exclude any
countries that are open to foreign investment.”
And Robin Mills, head of consulting at Manaar Energy, said that Lebanon was well-placed on the
demand side to produce gas for export. Unlike neighbouring Cyprus and Israel, Lebanon has a
ready supply route to export gas to Turkey, which consumed 1.59 trillion cubic feet of gas in 2012,
according to the International Energy Agency.
But politics has complicated the management of the country’s potential reserves. “Desire for
control over a future strategic resource has resulted in clashes over key roles within the sector –
firstly within the Petroleum Administration and more recently, at the energy ministry itself,” said Ms
Hunter. It took two years to finalise appointments to Lebanon’s Petroleum Administration, as
parties vied to claim control over the oil and gas regulator.
And wrangling looked set to postpone the auction beyond its mooted April date when Michel
Aoun, leader of a pro-Syrian party, held up the formation of a new cabinet after demanding that
his party, the Hizbollah-allied Free Patriotic Movement, retain the energy portfolio. A compromise
was reached in which the Armenian Revolutionary Federation (ARF) politician Arthur Nazarian
took the job, clearing the way for a new government.
The ARF is a member of the pro-Syrian March 8 coalition – named after a rally intended to
express gratitude for Syria’s role in Lebanese politics – and is also allied with Hizbollah. The post
was previously held by Mr Aoun’s son-in-law, Gebran Bassil, who is now the country’s foreign
minister.
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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
Petrofac wins BP’s $1.2bn Oman gas processing facility contract
BYA.E. JAMES ,TIMESOFOMAN
Petrofac, an international oil and gas
service provider, has been awarded a $1.2
billion-engineering, procurement and
construction contract by British oil giant BP
for building the central processing facility
(CPF) for the Khazzan gas project in north-
central Oman.
The gas processing facility, which is part of
an overall development plan of block 61, will
have a capacity to process one billion cubic
feet of natural gas per day, which is the
anticipated production from gas-rich
Khazzan and Makarem fields in the first
phase, a top-level official at the Ministry of
Oil and Gas earlier said.
This has been awarded on a convertible
lump sum basis and will convert to a full
lump sum contract at a pre-determined point
during execution, the London-listed Petrofac
said in a statement.
The scope of work will include engineering,
procurement and construction (EPC) of the
central processing facility (CPF) at the
Khazzan field. The CPF will include two
process trains, each having a capacity of
525 million standard cubic feet of gas per
day. The project also includes an
associated condensate processing system, power generation plant, water treatment system and
all associated utilities and infrastructure. The project is expected to be completed in 2017.
"Petrofac has executed a large number of projects for BP across many aspects of our business
and we are delighted to be supporting them on this pioneering project at Khazzan, the largest new
upstream project in Oman. We have a very strong record for project execution in Oman with this
project representing Petrofac's eighth EPC contract in the Sultanate and follows the recent award
of the $2.1 billion Sohar refinery improvement project which was announced in November," said
Subramanian Sarma, Managing Director of Petrofac's Onshore Engineering & Construction
Business.
"Furthermore, consistent with our commitment to developing Omani in-country value while also
providing opportunity for local content wherever we work, we will also seek to do so for the
duration of this contract via the supply chain and recruitment of local resources," he added.
Block 61
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
RH Petrogas Limited has successful completion in Indonesia.
www.offshoreenergytoday.com
The Koi-2 well is located in shallow water depth of 32 meters within the Salawati Kepala Burung PSC
(“Island PSC”), Indonesia. The Group conducted log analysis and three drill stem tests after the well
reached its total vertical depth of 1,428 meters on 30 December 2013. Post drill evaluation confirms that the
Koi structure holds estimated recoverable resources of 4 MMBO (million barrels of oil) net to the Group.
The joint venture partners of Island PSC have
agreed to conduct a Preliminary Front End
Engineering Design (“pre-FEED”) study to
evaluate the development design and concept for
the field.
In addition, preparatory works will soon commence
on the Plan of Field Development for submission to
the authorities, which will incorporate the results of
the preFEED study.
Francis Chang, Chief Executive Officer of RH
Petrogas said, “We are extremely excited about the
successful appraisal of the Koi-2 well. This opens up several analogous opportunities in the offshore area of
the Island PSC. We are delighted to begin the pre-FEED study and look forward to bringing the project into
successful production.”
The Group has an aggregate 33.21% working interest in the Island PSC through its wholly owned
subsidiaries Petrogas (Island) Ltd. and RHP Salawati Basin B.V. Its partners, PT Pertamina Hulu Energi
Salawati (“Pertamina”), holds 50% participating interest of Island PSC and PetroChina International Kepala
Burung Ltd. (“PetroChina”) holds the balance 16.79%.
The Island PSC is operated by JOB Pertamina-PetroChina Salawati, which is a joint operating body formed
between Pertamina and PetroChina. The consortium, as contractor of Indonesian government operating
under the supervision of SKK Migas (Satuan Kerja Khusus Minyak dan Gas), has actively explored and
produced oil and gas in the working area.
About : RH Petrogas Limited ("RHP")
In West Papua, Indonesia, RHP has a total of 60
percent of the Basin PSC and 33.2 percent of the
Island PSC. The Basin & Island PSCs are two
contiguous blocks located in the 'Birds Head' area of
West Papua, Indonesia, occupying a total area of
approximately 2,000 sq km onshore and offshore and
has a net production of 4,300 boepd. In December
2012, RHP successfully completed the signing of
Block SK331, onshore Sarawak Malaysia.
In Block SK331 PSC, RHP holds 80 percent whilst
Petronas Carigali holds the remaining 20 percent. The
PSC covers a large onshore concession area of 11,600
sq km and is the onshore extension of Balingian Basin
which contains oil & gas fields. With these new
developments, RHP currently have a total of five oil
& gas assets and aims to increase current production of 4,300 barrels of oil equivalent per day (boepd) rapidly.
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
SKKMigas Says Indonesia Plans to Drill 206 Exploration Wells in 2014
by Rigzone Staff www.rigzone.com/news
Indonesia's Special Task Force for Upstream Oil and Gas Business Activities
(SKKMigas) revealed that the petroleum industry intends to drill 206 exploration
wells this year, the organization's Acting Chairman J. Widjonarko told a
parliamentary hearing earlier this week.
“All of the exploration well drillings planned are expected to be realized, as opposed
to the previous year where only approximately 130 exploration well drillings were
carried out,” Widjonarko said.
In addition to exploration drilling, the industry plans to conduct 49 seismic surveys in
2014, including the acquisition of 5,604 miles (9,020 kilometers) of 2D seismic and
7,228 square miles (11,633 square kilometers) of 3D seismic.
Profile of SKKMigas :-
Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is an institution established by
the Government of the Republic of Indonesia under Presidential
Regulation Number 9 of 2013 on Management of Upstream Oil
and Gas Business Activities. SKK Migas is assigned to manage the
upstream oil and gas business activities under a Cooperation
Contract. The establishment of this institution is purposed that the
exploitation of the state’s oil and gas natural resources will be able
to generate maximum benefits and revenue to the state for the
greatest welfare of the people.
In performing those tasks, SKK Migas performs the following functions:
• to proffer inputs for consideration to the Minister of Energy and Mineral Resources at its discretion
in preparing and offering the bidding round of Working Areas and Cooperation Contract;
• to sign Cooperation Contracts;
• to review and submit the plan of field development to be the first production in a Working Area to
Minister of Energy and Mineral Resources for obtaining approval;
• to grant an approval for the development plan other than as referred to in previous point;
• to grant an approval for the work programs and budget;
• to conduct monitoring and to make report to Minister of Energy and Mineral Resources on the
performance of the Cooperation Contracts; and
• to appoint sellers of oil and/or gas of the state entitlement that may generate maximum profits to
the state.
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
Baghdad, Erbil at loggerheads over Kurdistan oil
Rashid Husain in http://www.saudigazette.com.sa
BAGHDAD and Erbil are locked in a battle of nerves. At stake are the control of the energy riches of the
landlocked Kurdistan - striving hard to wriggle out of Baghdad’s grip. The region is oil rich. With a federal
structure, the issue of who keeps the reins of these riches is of paramount importance. The issue under the
hammer is who controls the taps and the proceeds from Kurd oil - the Kurdistan Regional Government
(KRG) or the central government in Baghdad?
KOMO or SOMO?
Erbil has been insisting, all these months on a central, somewhat independent role, for its Kurdistan Oil
Marketing Company (KOMO) in marketing its crude, whereas, Baghdad wanted the selling process to be
under the firm control of the central government’s State Oil Marketing Corporation (SOMO).
The issue needed an urgent resolution, both sides know and realize. In a bid to reach a negotiated settlement
to the long-running dispute over exports of oil from Kurdistan via a new independent pipeline to Turkey, the
autonomous region’s prime minister and top energy
official has been traveling frequently to Baghdad and
also Ankara - in recent weeks.
And after the latest round, it has now been announced
that Iraqi Kurdistan has finally relented - agreeing
upon to export crude using the central government’s
oil marketing body, SOMO - while representatives of
the region would now be on its board too.
“After hours of meetings, we have agreed that our
brothers in the region will be represented in SOMO
and agreed that this is the sole national outlet
responsible for exporting oil,” Deputy Iraqi Prime Minister for Energy Hussain Al-Shahristani announced.
The earlier rounds of discussions between Erbil and Baghdad had failed in achieving any breakthrough over
the issue of allowing the autonomous Kurdistan Region to export its oil through a pipeline to Turkey. Hence
the development seems a major step toward resolving the issue. Yet there is still a long way to go.
“The second issue that is still unresolved is that they want the revenue from oil exports to be deposited in a
private account for the region in the DFI (Development Fund for Iraq),” Shahristani said. Revenue from the
sale of Iraq’s oil is currently paid into the DFI in New York for Baghdad to disburse.
Kurdistan is entitled to a 17 percent share, but says it in fact receives far less than that, and in recent weeks
has accused Baghdad of withholding funds, leaving civil servants in the region unpaid.
Crude from Kurdistan used to reach world markets through a Baghdad-controlled pipeline, but exports via
that channel dried up due to the row over payments for oil companies operating in the northern enclave.
Since then, the Kurds have been exporting smaller quantities by truck across the border whilst building the
pipeline to Turkey and negotiating a multi-billion dollar energy deal with Ankara.
While the talks have continued between Erbil and Baghdad, Kurds began shipping oil independently via the
new KRG pipeline into Turkey’s Mediterranean port of Ceyhan, which links with the Kirkuk-Ceyhan
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
pipeline at the border. However, exports from the Mediterranean port have been on hold on the issue of who
is to control the sales and its proceeds.
Baghdad has been sensitive to any news of direct sales as compromising its authority. It has been warning
foreign companies interested in Kurdish oil in Turkey that they may face legal action. Baghdad reportedly
also hired a law firm to target any buyer of “the illegally exported Kurdish crude oil.”
Iraq’s oil ministry instructed legal firm Vinson and Elkins about two months ago to pursue anyone who
buys oil pumped down the pipeline to the Turkish city of Ceyhan, near the Mediterranean, a senior Iraqi oil
official told Reuters late last month. “This is not a game. Anyone who buys this oil is doing something
illegal,” said the official, who asked not to be named. “We will target the companies because they are the
ones who will monetize and pay for the Kurdish oil. How else can it get onto the market?”
Iraq also threatened to boycott Turkish companies and cancel contracts after the KRG announced last month
that its first shipment of crude sent directly to Turkey, without passing through pipelines controlled by
Baghdad, had gone on sale, with more expected to follow.
Baghdad argued that all oil sales must be overseen by the central government and regarded any independent
exports tantamount to smuggling. Temperatures in Baghdad rose dramatically, generating a diplomatic row
with Ankara, when Turkey’s Daily Milliyet newspaper quoted anonymous Kurdish sources as saying that
the first batch of Kurdish oil had been sold through the Trans Petroleum Company in Singapore, worth $90
million.
Baghdad was irked, forcing Turkish Energy Minister Taner Y?ld?z to move in quickly to allay the fears,
rejecting reports that oil from the Ceyhan stockpiles has been exported without the consent of the central
government.
“Even if a barrel of oil had passed through Ceyhan, Baghdad would have been informed of this and a daily
receipt would have been given to the central government noting how much of a sale was made,” Y?ld?z said
mid-February.
“This is Iraq’s oil, not Turkey’s. Thus Baghdad will be informed, because it is an issue related to Iraq’s
income. So far, there has not been any oil that has gone through Ceyhan, but this does not mean it won’t be
transferred in future. We’ll share all information with Baghdad,” Y?ld?z emphasized.
And although the issue is still to be fully resolved, and some sticking points remain - hints that a deal
between Baghdad and Erbil was imminent has been pouring in for the last few weeks. “We have never been
this close to a deal,” Mehmet Sepil, the president of Anglo-Turkish firm Genel Energy who has knowledge
of the progress made in talks, was quoted as saying early this month. “The issues that caused impasse have
been identified. There’s been quite a bit of progress made.”
“The trickier issue is the bank account. Baghdad wants the revenues to be deposited in the Development
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
Fund of Iraq (DFI) instead of a Turkish state bank,” Sepil said. DFI was created in 2003 under a resolution
from the United Nations Security Council to receives revenues from Iraqi oil and gas sales, which are used
in part for the its reconstruction efforts.
Last but not least, the outstanding oil payments to companies operating in Iraqi Kurdistan are a major issue
that also needed to be ironed out, Sepil emphasized then. A will to resolve the issue seems present. And that
is helping the cause. For both Erbil and Baghdad know, and rather well, that for their own compelling
reasons, they need to sort the issue out - before it is too late.
Bout Kurdistan oil
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
Taqa opens Erbil Kurdistan office
– TradeArabia News Service
Taqa, the international energy and water company from Abu Dhabi, has formally tool to leverage and
amplify the enormous skills of our professionals who bring expertise from across the globe to the exciting
possibilities we see in Kurdistan.” opened its new office in Erbil, in the Kurdistan region of Iraq.
The office was inaugurated by Abdulla Saif
Al-Nuaimi, Taqa vice-chairman, in the
presence of Sinan Abdulkhalq Ahmed
Çelebi, Minister of Trade and Industry;
Nawzad Hadi Mawlood, the Governor of
Erbil Province from the Kurdistan Regional
Government, and Rashid Mohammed Al
Mansouri, Consul General of the UAE in
Erbil.
Al-Nuaimi said, “This new office gives us
a powerful tool to leverage and amplify the
enormous skills of our professionals who
bring expertise from across the globe to the
exciting possibilities we see here. We look forward to a long and fruitful relationship with the Kurdistan
Regional Government and our other partners in furthering the economic development of this region and the
country.”
Dr Ashti Hawrami, Minister of Natural Resources for the Kurdistan Regional Government said: “We
congratulate Taqa on the inauguration of their new office here in Erbil and welcome their continued
activities to develop the promising oil and gas opportunities in the Kurdistan region of Iraq.”
Al Mansouri said: "The presence of such a major UAE company like Taqa in the Kurdistan region of Iraq
brings many significant benefits, most importantly towards the UAE’s commitment to strengthen relations
with the Kurdistan Region. Taqa will also encourage other UAE companies to follow suit and seek
opportunities here. We wish Taqa and the Kurdistan Region every success in further strengthening their
mutually beneficial relationship.”
The new Taqa office features an open-
plan design to boost productivity,
innovation and creative team-driven
approaches to the company’s business
in the country. It is a workspace that
reflects the highest standards of safety
and design, delivering extra comfort to
employees and a reduced carbon
footprint.
Leo Koot, president of Taqa Iraq, said:
“As we continue to move forward on
our ambitious production schedule that
anticipates delivering first oil by early
2015, this new office gives us a
powerful
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 10
Statoil Exploration well in Kramsnø completed
http://www.statoil.com
Statoil has together with PL532 partners made a gas discovery in the Kramsnø prospect inStatoil has together with PL532 partners made a gas discovery in the Kramsnø prospect inStatoil has together with PL532 partners made a gas discovery in the Kramsnø prospect inStatoil has together with PL532 partners made a gas discovery in the Kramsnø prospect in
the Barents Sea. The exploration program around the Johan Castberg field has been vital inthe Barents Sea. The exploration program around the Johan Castberg field has been vital inthe Barents Sea. The exploration program around the Johan Castberg field has been vital inthe Barents Sea. The exploration program around the Johan Castberg field has been vital in
providing area knowledge, but so far not delivered expected oil volumes.providing area knowledge, but so far not delivered expected oil volumes.providing area knowledge, but so far not delivered expected oil volumes.providing area knowledge, but so far not delivered expected oil volumes.
In 2011-2012 Statoil made a breakthrough in the Barents Sea with two high impact oil
discoveries Skrugard and
Havis, proving a total of
400-600 million barrels of
recoverable oil.
Skrugard and Havis opened
a new petroleum province
in the Barents Sea and
created a basis for the
Johan Castberg field
development project.
Irene Rummelhoff, senior vice president
exploration Norway. (Photo: Harald
Pettersen)
In 2013 Statoil launched a targeted exploration campaign around the Johan Castberg
field in order to clarify additional oil potential in the area and make the development
project more robust. The exploration campaign comprises five prospects, and Kramsnø
was the fourth of those.
«We are approaching the end of the current drilling program around the Johan Castberg
field. Unfortunately, out of the four wells drilled to date only one has resulted in an oil
discovery. The last prospect we will test in this exploration campaign is Drivis, and we
will commence drilling operations right after the completion of Kramsnø,” says Irene
Rummelhoff, senior vice president exploration Norway.
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 11
Erik Strand Tellefsen, vice
president field development
northern Norway. (Photo: Harald
Rummelhoff explains that the Johan Castberg area has a diverse range of potential
prospects. The exploration campaign has been designed to embrace this diversity and
get the best possible understanding of the total resource base in the area.
The prospects selected for the campaign test different play
models in varied geological settings and are independent of
each other. They were also large enough to have an impact
on the development solution.
“The exploration campaign is serving its purpose of
maximising our knowledge of the area, but has not provided the additional
resources we hoped for. This makes it even more important to improve
the development concept and reduce investments,” says Erik Strand
Tellefsen, vice president field development northern Norway. Statoil is operator for
production licence PL532 with an ownership share of 50%. The licence partners are Eni
Norge AS (30%) and Petoro AS (20%). For further details on the results of exploration well
7220/4-1 in the Kramsnø prospect,
Statoil is an international energy company with operations in 33 countries. Building on
40 years of experience from oil and gas production on the Norwegian continental shelf, we
are committed to accommodating the world's energy needs in a responsible manner, applying
technology and creating innovative business solutions. We are headquartered in
Stavanger, Norway with approximately 23,000 employees worldwide , and are listed on the
New York and Oslo stock exchanges.
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 12
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 AwadiKhaled Al AwadiKhaled Al AwadiKhaled Al Awadi is a UAE National with a total of 24 yearsis a UAE National with a total of 24 yearsis a UAE National with a total of 24 yearsis 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 AffairsOil & Gas sector. Currently working as Technical AffairsOil & Gas sector. Currently working as Technical AffairsOil & Gas sector. Currently working as Technical Affairs
Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Enawk Enawk Enawk Energyergyergyergy
Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gasfor Emarat Gasfor Emarat Gasfor Emarat Gas
Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiencePipeline Network Facility & gas compressor stations . Through the years , he has developed great experiencePipeline Network Facility & gas compressor stations . Through the years , he has developed great experiencePipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designing & constructings in the designing & constructings in the designing & constructings in the designing & constructing of gas pipelines,of gas pipelines,of gas pipelines,of gas pipelines,
gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation &ransportation , operation &ransportation , operation &ransportation , operation &
maintenance agreements along with many MOUs for thmaintenance agreements along with many MOUs for thmaintenance agreements along with many MOUs for thmaintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAEe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAEe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAEe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE
andandandand 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 23 February 2014 K. Al Awadi

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New base special 23 february 2014

  • 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 23 February 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Lebanon prepares tender for exploration rights to its vast natural gas reserves www.thenational.ae/business/ , Adam Bouyamourn An estimated 96 trillion cubic feet of natural gas is sitting under Lebanon’s waters, but a tender for gas companies to build exploratory wells has hit one political snag after another. Yet as a new coalition government with a new energy minister takes power, it looks more likely that Lebanon’s auction of exploration rights will proceed on schedule, with the first blocks set to be sold on April 10. For 315 days spanning this year and last, Lebanon was without a government. The appointment of a new government is “a big step forward”, said Catherine Hunter, who leads the energy team at IHS Global Insight, a think tank. “It allows some of the outstanding regulatory issues to be resolved … [but] with new faces involved, there’s still some potential for slippage.” Mubadala Petroleum, Rosneft and ExxonMobil, along with 30 other companies, expressed interest in exploratory drilling early last year, but a deadlocked parliament, in which Hizbollah- backed members hold veto power, failed to pass required legislation. And further political instability could yet affect the timing of the auction, Ms Hunter said, because Lebanon’s cabinet is required to sign off on several additional technical issues. Discoveries of natural resources could be a boon to Lebanon’s economy, which has suffered as conflict in Syria spills over into the country. Tourism has dipped following a spate of car bombings in the capital, with occupancy rates falling and room yields dropping by 21 per cent in 2013 on the previous year, according to data from Byblos bank.
  • 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 “[It’s] difficult to say what the impact of gas discoveries will be for this decade,” said Ms Hunter, but “natural gas potentially provides a means to reduce oil product imports and boost power generation capacity if the volumes discovered are commercially viable”. Naji Abi Aad, the chief operating officer of PetroLeb, a company that intends to bid to manage areas of gas exploration, was optimistic about the impact of discoveries. “According to the various seismic studies and interpretations, Lebanon has very promising petroleum prospects in its territorial waters,” he said. “We are confident that ... developing [the country’s resources] will bring economic prosperity to Lebanon and its population.” A spokesman from the Dutch oil company Shell, which has prequalified to bid to explore Lebanon’s waters, said: “Shell looks at business opportunities in Lebanon in the same way as any other potential interest. “We review our growth portfolio on a regular basis and do not exclude any countries that are open to foreign investment.” And Robin Mills, head of consulting at Manaar Energy, said that Lebanon was well-placed on the demand side to produce gas for export. Unlike neighbouring Cyprus and Israel, Lebanon has a ready supply route to export gas to Turkey, which consumed 1.59 trillion cubic feet of gas in 2012, according to the International Energy Agency. But politics has complicated the management of the country’s potential reserves. “Desire for control over a future strategic resource has resulted in clashes over key roles within the sector – firstly within the Petroleum Administration and more recently, at the energy ministry itself,” said Ms Hunter. It took two years to finalise appointments to Lebanon’s Petroleum Administration, as parties vied to claim control over the oil and gas regulator. And wrangling looked set to postpone the auction beyond its mooted April date when Michel Aoun, leader of a pro-Syrian party, held up the formation of a new cabinet after demanding that his party, the Hizbollah-allied Free Patriotic Movement, retain the energy portfolio. A compromise was reached in which the Armenian Revolutionary Federation (ARF) politician Arthur Nazarian took the job, clearing the way for a new government. The ARF is a member of the pro-Syrian March 8 coalition – named after a rally intended to express gratitude for Syria’s role in Lebanese politics – and is also allied with Hizbollah. The post was previously held by Mr Aoun’s son-in-law, Gebran Bassil, who is now the country’s foreign minister.
  • 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 Petrofac wins BP’s $1.2bn Oman gas processing facility contract BYA.E. JAMES ,TIMESOFOMAN Petrofac, an international oil and gas service provider, has been awarded a $1.2 billion-engineering, procurement and construction contract by British oil giant BP for building the central processing facility (CPF) for the Khazzan gas project in north- central Oman. The gas processing facility, which is part of an overall development plan of block 61, will have a capacity to process one billion cubic feet of natural gas per day, which is the anticipated production from gas-rich Khazzan and Makarem fields in the first phase, a top-level official at the Ministry of Oil and Gas earlier said. This has been awarded on a convertible lump sum basis and will convert to a full lump sum contract at a pre-determined point during execution, the London-listed Petrofac said in a statement. The scope of work will include engineering, procurement and construction (EPC) of the central processing facility (CPF) at the Khazzan field. The CPF will include two process trains, each having a capacity of 525 million standard cubic feet of gas per day. The project also includes an associated condensate processing system, power generation plant, water treatment system and all associated utilities and infrastructure. The project is expected to be completed in 2017. "Petrofac has executed a large number of projects for BP across many aspects of our business and we are delighted to be supporting them on this pioneering project at Khazzan, the largest new upstream project in Oman. We have a very strong record for project execution in Oman with this project representing Petrofac's eighth EPC contract in the Sultanate and follows the recent award of the $2.1 billion Sohar refinery improvement project which was announced in November," said Subramanian Sarma, Managing Director of Petrofac's Onshore Engineering & Construction Business. "Furthermore, consistent with our commitment to developing Omani in-country value while also providing opportunity for local content wherever we work, we will also seek to do so for the duration of this contract via the supply chain and recruitment of local resources," he added. Block 61
  • 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 RH Petrogas Limited has successful completion in Indonesia. www.offshoreenergytoday.com The Koi-2 well is located in shallow water depth of 32 meters within the Salawati Kepala Burung PSC (“Island PSC”), Indonesia. The Group conducted log analysis and three drill stem tests after the well reached its total vertical depth of 1,428 meters on 30 December 2013. Post drill evaluation confirms that the Koi structure holds estimated recoverable resources of 4 MMBO (million barrels of oil) net to the Group. The joint venture partners of Island PSC have agreed to conduct a Preliminary Front End Engineering Design (“pre-FEED”) study to evaluate the development design and concept for the field. In addition, preparatory works will soon commence on the Plan of Field Development for submission to the authorities, which will incorporate the results of the preFEED study. Francis Chang, Chief Executive Officer of RH Petrogas said, “We are extremely excited about the successful appraisal of the Koi-2 well. This opens up several analogous opportunities in the offshore area of the Island PSC. We are delighted to begin the pre-FEED study and look forward to bringing the project into successful production.” The Group has an aggregate 33.21% working interest in the Island PSC through its wholly owned subsidiaries Petrogas (Island) Ltd. and RHP Salawati Basin B.V. Its partners, PT Pertamina Hulu Energi Salawati (“Pertamina”), holds 50% participating interest of Island PSC and PetroChina International Kepala Burung Ltd. (“PetroChina”) holds the balance 16.79%. The Island PSC is operated by JOB Pertamina-PetroChina Salawati, which is a joint operating body formed between Pertamina and PetroChina. The consortium, as contractor of Indonesian government operating under the supervision of SKK Migas (Satuan Kerja Khusus Minyak dan Gas), has actively explored and produced oil and gas in the working area. About : RH Petrogas Limited ("RHP") In West Papua, Indonesia, RHP has a total of 60 percent of the Basin PSC and 33.2 percent of the Island PSC. The Basin & Island PSCs are two contiguous blocks located in the 'Birds Head' area of West Papua, Indonesia, occupying a total area of approximately 2,000 sq km onshore and offshore and has a net production of 4,300 boepd. In December 2012, RHP successfully completed the signing of Block SK331, onshore Sarawak Malaysia. In Block SK331 PSC, RHP holds 80 percent whilst Petronas Carigali holds the remaining 20 percent. The PSC covers a large onshore concession area of 11,600 sq km and is the onshore extension of Balingian Basin which contains oil & gas fields. With these new developments, RHP currently have a total of five oil & gas assets and aims to increase current production of 4,300 barrels of oil equivalent per day (boepd) rapidly.
  • 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 SKKMigas Says Indonesia Plans to Drill 206 Exploration Wells in 2014 by Rigzone Staff www.rigzone.com/news Indonesia's Special Task Force for Upstream Oil and Gas Business Activities (SKKMigas) revealed that the petroleum industry intends to drill 206 exploration wells this year, the organization's Acting Chairman J. Widjonarko told a parliamentary hearing earlier this week. “All of the exploration well drillings planned are expected to be realized, as opposed to the previous year where only approximately 130 exploration well drillings were carried out,” Widjonarko said. In addition to exploration drilling, the industry plans to conduct 49 seismic surveys in 2014, including the acquisition of 5,604 miles (9,020 kilometers) of 2D seismic and 7,228 square miles (11,633 square kilometers) of 3D seismic. Profile of SKKMigas :- Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is an institution established by the Government of the Republic of Indonesia under Presidential Regulation Number 9 of 2013 on Management of Upstream Oil and Gas Business Activities. SKK Migas is assigned to manage the upstream oil and gas business activities under a Cooperation Contract. The establishment of this institution is purposed that the exploitation of the state’s oil and gas natural resources will be able to generate maximum benefits and revenue to the state for the greatest welfare of the people. In performing those tasks, SKK Migas performs the following functions: • to proffer inputs for consideration to the Minister of Energy and Mineral Resources at its discretion in preparing and offering the bidding round of Working Areas and Cooperation Contract; • to sign Cooperation Contracts; • to review and submit the plan of field development to be the first production in a Working Area to Minister of Energy and Mineral Resources for obtaining approval; • to grant an approval for the development plan other than as referred to in previous point; • to grant an approval for the work programs and budget; • to conduct monitoring and to make report to Minister of Energy and Mineral Resources on the performance of the Cooperation Contracts; and • to appoint sellers of oil and/or gas of the state entitlement that may generate maximum profits to the state.
  • 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 Baghdad, Erbil at loggerheads over Kurdistan oil Rashid Husain in http://www.saudigazette.com.sa BAGHDAD and Erbil are locked in a battle of nerves. At stake are the control of the energy riches of the landlocked Kurdistan - striving hard to wriggle out of Baghdad’s grip. The region is oil rich. With a federal structure, the issue of who keeps the reins of these riches is of paramount importance. The issue under the hammer is who controls the taps and the proceeds from Kurd oil - the Kurdistan Regional Government (KRG) or the central government in Baghdad? KOMO or SOMO? Erbil has been insisting, all these months on a central, somewhat independent role, for its Kurdistan Oil Marketing Company (KOMO) in marketing its crude, whereas, Baghdad wanted the selling process to be under the firm control of the central government’s State Oil Marketing Corporation (SOMO). The issue needed an urgent resolution, both sides know and realize. In a bid to reach a negotiated settlement to the long-running dispute over exports of oil from Kurdistan via a new independent pipeline to Turkey, the autonomous region’s prime minister and top energy official has been traveling frequently to Baghdad and also Ankara - in recent weeks. And after the latest round, it has now been announced that Iraqi Kurdistan has finally relented - agreeing upon to export crude using the central government’s oil marketing body, SOMO - while representatives of the region would now be on its board too. “After hours of meetings, we have agreed that our brothers in the region will be represented in SOMO and agreed that this is the sole national outlet responsible for exporting oil,” Deputy Iraqi Prime Minister for Energy Hussain Al-Shahristani announced. The earlier rounds of discussions between Erbil and Baghdad had failed in achieving any breakthrough over the issue of allowing the autonomous Kurdistan Region to export its oil through a pipeline to Turkey. Hence the development seems a major step toward resolving the issue. Yet there is still a long way to go. “The second issue that is still unresolved is that they want the revenue from oil exports to be deposited in a private account for the region in the DFI (Development Fund for Iraq),” Shahristani said. Revenue from the sale of Iraq’s oil is currently paid into the DFI in New York for Baghdad to disburse. Kurdistan is entitled to a 17 percent share, but says it in fact receives far less than that, and in recent weeks has accused Baghdad of withholding funds, leaving civil servants in the region unpaid. Crude from Kurdistan used to reach world markets through a Baghdad-controlled pipeline, but exports via that channel dried up due to the row over payments for oil companies operating in the northern enclave. Since then, the Kurds have been exporting smaller quantities by truck across the border whilst building the pipeline to Turkey and negotiating a multi-billion dollar energy deal with Ankara. While the talks have continued between Erbil and Baghdad, Kurds began shipping oil independently via the new KRG pipeline into Turkey’s Mediterranean port of Ceyhan, which links with the Kirkuk-Ceyhan
  • 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 pipeline at the border. However, exports from the Mediterranean port have been on hold on the issue of who is to control the sales and its proceeds. Baghdad has been sensitive to any news of direct sales as compromising its authority. It has been warning foreign companies interested in Kurdish oil in Turkey that they may face legal action. Baghdad reportedly also hired a law firm to target any buyer of “the illegally exported Kurdish crude oil.” Iraq’s oil ministry instructed legal firm Vinson and Elkins about two months ago to pursue anyone who buys oil pumped down the pipeline to the Turkish city of Ceyhan, near the Mediterranean, a senior Iraqi oil official told Reuters late last month. “This is not a game. Anyone who buys this oil is doing something illegal,” said the official, who asked not to be named. “We will target the companies because they are the ones who will monetize and pay for the Kurdish oil. How else can it get onto the market?” Iraq also threatened to boycott Turkish companies and cancel contracts after the KRG announced last month that its first shipment of crude sent directly to Turkey, without passing through pipelines controlled by Baghdad, had gone on sale, with more expected to follow. Baghdad argued that all oil sales must be overseen by the central government and regarded any independent exports tantamount to smuggling. Temperatures in Baghdad rose dramatically, generating a diplomatic row with Ankara, when Turkey’s Daily Milliyet newspaper quoted anonymous Kurdish sources as saying that the first batch of Kurdish oil had been sold through the Trans Petroleum Company in Singapore, worth $90 million. Baghdad was irked, forcing Turkish Energy Minister Taner Y?ld?z to move in quickly to allay the fears, rejecting reports that oil from the Ceyhan stockpiles has been exported without the consent of the central government. “Even if a barrel of oil had passed through Ceyhan, Baghdad would have been informed of this and a daily receipt would have been given to the central government noting how much of a sale was made,” Y?ld?z said mid-February. “This is Iraq’s oil, not Turkey’s. Thus Baghdad will be informed, because it is an issue related to Iraq’s income. So far, there has not been any oil that has gone through Ceyhan, but this does not mean it won’t be transferred in future. We’ll share all information with Baghdad,” Y?ld?z emphasized. And although the issue is still to be fully resolved, and some sticking points remain - hints that a deal between Baghdad and Erbil was imminent has been pouring in for the last few weeks. “We have never been this close to a deal,” Mehmet Sepil, the president of Anglo-Turkish firm Genel Energy who has knowledge of the progress made in talks, was quoted as saying early this month. “The issues that caused impasse have been identified. There’s been quite a bit of progress made.” “The trickier issue is the bank account. Baghdad wants the revenues to be deposited in the Development
  • 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 Fund of Iraq (DFI) instead of a Turkish state bank,” Sepil said. DFI was created in 2003 under a resolution from the United Nations Security Council to receives revenues from Iraqi oil and gas sales, which are used in part for the its reconstruction efforts. Last but not least, the outstanding oil payments to companies operating in Iraqi Kurdistan are a major issue that also needed to be ironed out, Sepil emphasized then. A will to resolve the issue seems present. And that is helping the cause. For both Erbil and Baghdad know, and rather well, that for their own compelling reasons, they need to sort the issue out - before it is too late. Bout Kurdistan oil
  • 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 Taqa opens Erbil Kurdistan office – TradeArabia News Service Taqa, the international energy and water company from Abu Dhabi, has formally tool to leverage and amplify the enormous skills of our professionals who bring expertise from across the globe to the exciting possibilities we see in Kurdistan.” opened its new office in Erbil, in the Kurdistan region of Iraq. The office was inaugurated by Abdulla Saif Al-Nuaimi, Taqa vice-chairman, in the presence of Sinan Abdulkhalq Ahmed Çelebi, Minister of Trade and Industry; Nawzad Hadi Mawlood, the Governor of Erbil Province from the Kurdistan Regional Government, and Rashid Mohammed Al Mansouri, Consul General of the UAE in Erbil. Al-Nuaimi said, “This new office gives us a powerful tool to leverage and amplify the enormous skills of our professionals who bring expertise from across the globe to the exciting possibilities we see here. We look forward to a long and fruitful relationship with the Kurdistan Regional Government and our other partners in furthering the economic development of this region and the country.” Dr Ashti Hawrami, Minister of Natural Resources for the Kurdistan Regional Government said: “We congratulate Taqa on the inauguration of their new office here in Erbil and welcome their continued activities to develop the promising oil and gas opportunities in the Kurdistan region of Iraq.” Al Mansouri said: "The presence of such a major UAE company like Taqa in the Kurdistan region of Iraq brings many significant benefits, most importantly towards the UAE’s commitment to strengthen relations with the Kurdistan Region. Taqa will also encourage other UAE companies to follow suit and seek opportunities here. We wish Taqa and the Kurdistan Region every success in further strengthening their mutually beneficial relationship.” The new Taqa office features an open- plan design to boost productivity, innovation and creative team-driven approaches to the company’s business in the country. It is a workspace that reflects the highest standards of safety and design, delivering extra comfort to employees and a reduced carbon footprint. Leo Koot, president of Taqa Iraq, said: “As we continue to move forward on our ambitious production schedule that anticipates delivering first oil by early 2015, this new office gives us a powerful
  • 10. 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 10 Statoil Exploration well in Kramsnø completed http://www.statoil.com Statoil has together with PL532 partners made a gas discovery in the Kramsnø prospect inStatoil has together with PL532 partners made a gas discovery in the Kramsnø prospect inStatoil has together with PL532 partners made a gas discovery in the Kramsnø prospect inStatoil has together with PL532 partners made a gas discovery in the Kramsnø prospect in the Barents Sea. The exploration program around the Johan Castberg field has been vital inthe Barents Sea. The exploration program around the Johan Castberg field has been vital inthe Barents Sea. The exploration program around the Johan Castberg field has been vital inthe Barents Sea. The exploration program around the Johan Castberg field has been vital in providing area knowledge, but so far not delivered expected oil volumes.providing area knowledge, but so far not delivered expected oil volumes.providing area knowledge, but so far not delivered expected oil volumes.providing area knowledge, but so far not delivered expected oil volumes. In 2011-2012 Statoil made a breakthrough in the Barents Sea with two high impact oil discoveries Skrugard and Havis, proving a total of 400-600 million barrels of recoverable oil. Skrugard and Havis opened a new petroleum province in the Barents Sea and created a basis for the Johan Castberg field development project. Irene Rummelhoff, senior vice president exploration Norway. (Photo: Harald Pettersen) In 2013 Statoil launched a targeted exploration campaign around the Johan Castberg field in order to clarify additional oil potential in the area and make the development project more robust. The exploration campaign comprises five prospects, and Kramsnø was the fourth of those. «We are approaching the end of the current drilling program around the Johan Castberg field. Unfortunately, out of the four wells drilled to date only one has resulted in an oil discovery. The last prospect we will test in this exploration campaign is Drivis, and we will commence drilling operations right after the completion of Kramsnø,” says Irene Rummelhoff, senior vice president exploration Norway.
  • 11. 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 11 Erik Strand Tellefsen, vice president field development northern Norway. (Photo: Harald Rummelhoff explains that the Johan Castberg area has a diverse range of potential prospects. The exploration campaign has been designed to embrace this diversity and get the best possible understanding of the total resource base in the area. The prospects selected for the campaign test different play models in varied geological settings and are independent of each other. They were also large enough to have an impact on the development solution. “The exploration campaign is serving its purpose of maximising our knowledge of the area, but has not provided the additional resources we hoped for. This makes it even more important to improve the development concept and reduce investments,” says Erik Strand Tellefsen, vice president field development northern Norway. Statoil is operator for production licence PL532 with an ownership share of 50%. The licence partners are Eni Norge AS (30%) and Petoro AS (20%). For further details on the results of exploration well 7220/4-1 in the Kramsnø prospect, Statoil is an international energy company with operations in 33 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, we are committed to accommodating the world's energy needs in a responsible manner, applying technology and creating innovative business solutions. We are headquartered in Stavanger, Norway with approximately 23,000 employees worldwide , and are listed on the New York and Oslo stock exchanges.
  • 12. 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 12 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 AwadiKhaled Al AwadiKhaled Al AwadiKhaled Al Awadi is a UAE National with a total of 24 yearsis a UAE National with a total of 24 yearsis a UAE National with a total of 24 yearsis 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 AffairsOil & Gas sector. Currently working as Technical AffairsOil & Gas sector. Currently working as Technical AffairsOil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Enawk Enawk Enawk Energyergyergyergy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gasfor Emarat Gasfor Emarat Gasfor Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiencePipeline Network Facility & gas compressor stations . Through the years , he has developed great experiencePipeline Network Facility & gas compressor stations . Through the years , he has developed great experiencePipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designing & constructings in the designing & constructings in the designing & constructings in the designing & constructing of gas pipelines,of gas pipelines,of gas pipelines,of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation &ransportation , operation &ransportation , operation &ransportation , operation & maintenance agreements along with many MOUs for thmaintenance agreements along with many MOUs for thmaintenance agreements along with many MOUs for thmaintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAEe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAEe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAEe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andandandand 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 23 February 2014 K. Al Awadi