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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 25 September 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Iraq: ShaMaran Petroleum provides Atrush drilling update
Source: ShaMaran Petroleum
ShaMaran Petroleum has provided an operational update on the Atrush development in the
Kurdistan Region of Iraq.The DQE31 drilling rig resumed drilling operations on the Chiya Chere-8
('CK-8') on August 30, 2014 and reached a Total Depth of 2195 metres on September 13, 2014.
The bottom hole location is approx. 1.4 ESE of the surface location and the AT-1 discovery well.
CK-8 was spudded on July 19, 2014 and reached TD in 33 days. The well found the top of
Jurassic reservoir approx. 90 metres structurally higher than the AT-1 discovery well. This well
completes the predrilling of the initial four producers for the Phase One facilities, namely AT-2,
AT-4, CK-5and CK-8. The well is on schedule to be tested using a service rig in 2015 prior to final
completion and tie-in to the Phase 1 Production Facility.
The EDC Romfor 25 drilling rig is currently being mobilised to the Atrush Block and preparing to
spud the Chiya Khere-6 ('CK-6') Phase 2 appraisal well. The well is located in the eastern part
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
of the structure and is being drilled from the same well pad as the Atrush-3 appraisal well ('AT-
3'). CK-6 is being drilled to a planned total depth of 2,164 metres targeting the Jurassic reservoir
approx. 1.1 km SE of the surface location and the AT-3 well (approx. 10.3 kms east of the AT-1
discovery well). The drilling of the CK-6 well is estimated to take up to 70 days. The current plan
is for the rig to conduct the retest of AT-3 following the testing of CK-6.
In August 2014 initial work commenced for the construction of the Right of Way for the Atrush
feeder pipeline over the Chiya Khere mountain section.
ShaMaran Petroleum Corp. holds a 20.1% working interest through its wholly owned
subsidiary, ShaMaran Ventures (100% owner of General Exploration Partners, Inc.) in
the Atrush Block.
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
Gulf Petrochem acquires Shell’s bitumen plant in India
Gulf News + NewBase
UAE-based Gulf Petrochem on Wednesday announced its acquisition of the Royal Dutch Shell
Specialties Bitumen plant at Savli, near Vadodara in Gujarat, India. The acquisition, through a
direct purchase, will complement the construction of a high capacity storage terminal for various
petroleum products at Pipavav in Gujarat and meet the ever increasing demand for Bitumen
Specialty products in West and North India, the company said in a statement.
Gulf Petrochem will begin to manufacture 30,000 MT per annum of Bitumen Specialty products
that includes Bitumen Emulsions, Micro-surfacing Emulsions, Crumb Rubber Modified Bitumen,
Polymer Modified Bitumen and various other Cold Mix road construction products.
The company will also upgrade the plant to manufacture Bitumen products that adhere to new
specifications laid down by Indian Roads Congress. Manan Goel, Group Director at Gulf
Petrochem, said that the acquisition has helped increase our product portfolio with petroleum
products that we can market and deliver through our storage, shipping, manufacturing and
terminal businesses.
“It mirrors our growth strategy because we
have enhanced our integration solution in
India and consolidated our position as the
only company in the region that is actively
present in both conventional bitumen and
specialty products.”
The company said that under Gulf
Petrochem ownership, the plant will meet the
demand for different packages such 200 Kg
MS drums, 200 Kg MS Reconditioned drums,
200 Kg HDPE drums and Bulk in tankers.
The company also plans to provide poly bag
packing for modified bitumen products and
expand manufacturing capabilities to supply
a variety of grades and specifications as per IS, ASTM, AASHTO and BS standards.
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
Kingdom to slash CO2 emissions by 800,000 tons per year
Saudi Gazette + NewBase
Saudi Arabia’s “CO2-Enhanced Oil Recovery” project will reduce carbon dioxide (CO2) emissions
by 800,000 tons per year in 2015, Saudi Oil Minister Ali Al-Naimi said in a speech at the UN
Climate Summit in New York on Wednesday.
He added “one of our private companies is currently engaged in a project to capture and use
carbon dioxide in the production of other materials of economic value. The project will reduce
carbon dioxide emissions by 500,000 tons per year.” He further said that in line with the Kyoto
Protocol, Saudi Arabia has established the National Committee for Clean Development
Mechanism to manage and implement CDM projects.
In the area of clean and renewable energy future, King Abdullah City for Atomic and Renewable
Energy (K.A.CARE) was established with the aim of building a sustainable future for the Kingdom
of Saudi Arabia by introducing renewable energy sources to the local energy landscape, Al Naimi
remarked. “Saudi Arabia has paid great attention to educating its younger generations about solar
energy. We know that the development of these energy sources will serve the Kingdom’s basic
and long-term economic interest,” he noted.
Citing the comprehensive development renaissance, and political, security and economic stability
that the Kingdom achieved under the wise leadership of the Custodian of the Two Holy Mosques
King Abdullah, Al- Naimi underscored commitment to address and managing greenhouse gas
emissions, in cooperation with the international community.
“Saudi Arabia believes that the reduction of greenhouse gas emissions must be achieved without
undermining the economic growth, or negatively affecting the social development, or destabilizing
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
the global energy market. We are well aware of the mutual relationship between the effects of
climate change and importance of sustainable development,” he said.
Moreover, he said Saudi Arabia stressed that the international response to climate change must
fully respect the principles and provisions of the United Nations Framework Convention on
Climate Change, particularly the principle of common but differentiated responsibility (CBDR).
He said the National Program for the Management and Rationalization of Energy Consumption,
inaugurated in 2008, has been transformed to a permanent national center to rationalize energy
around Kingdom to improve efficient energy production and consumption. It also aims to unify
efforts among different entities in the Kingdom to efficiently reserve and utilize energy, while
contributing to the environment preservation efforts.
The Kingdom
has allocated
substantial
funding to
research and
development in
clean energy. It
has created the
‘King Abdullah
Petroleum
Studies and
Research’
which aims to
become a
global center
for all types of
energy
research and
related policies
and economics,
technology, and environmental technologies. The Kingdom has also built the ‘King Abdullah
University of Science and Technology’ for advanced scientific research in the field of energy and
the environment. Other universities in the Kingdom are contributing to this effort.
The Saudi oil minister underlined that Saudi Arabia believes that setting rigorous though ill-
considered goals will not achieve the goal of reducing greenhouse gas emissions unless the
national circumstances and capacities of each country is taken into account, and they are in line
with the different stages of economic development. Hence, the Kingdom is aware of the
importance of partnership and collaboration between the public and private sector in climate
activities and international initiatives that help states and private sectors to achieve the objectives
in a comprehensive and balanced manner. The Kingdom has made progress to join international
initiatives to support its national efforts, he pointed out. He stressed that cutting-edge technology
will provide a lot of solutions to environmental challenges in order foster environmentally-friendly
economic and social development around the globe.
And to realized the goal, Al-Naimi said countries and individuals, are responsible for addressing
the environmental challenges. “But we must bear in mind that developed countries need to take
the lead in this area based on their potential and historic responsibility,” he noted.
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
Masdar buys 35% stake in UK biggest offshore wind farms
The National + NewBase
Masdar, Abu Dhabi’s renewable energy company, has bought a stake in what is set to be the
world’s fourth-largest offshore wind farm just off the UK’s Norfolk coast. Masdar invested £525
million (Dh3.16 billion) for a 35
per cent stake in the £1.5bn
Dudgeon project, the UK
government said. Construction of
the wind farm, which is set to
have a capacity of 402
megawatts, enough to power
about 410,000 homes, is
scheduled to be completed in late
2017.
Masdar will partner with the state-
owned Norwegian energy firm
Statoil, which retains a 35 per
cent stake in the project and will
operate the farm. The remaining
30 per cent is held by Statkraft,
Norway’s state-owned electricity
firm. In July, Siemens was awarded a £516m contract for the construction and maintenance of the
Dudgeon wind turbines.
“Masdar has gained important experience in offshore wind, and is now looking to commit further to
the sector. The UK offers experienced firms and good growth prospects, and is a natural market
choice for investments in offshore wind,” said Magnus Dale, who covers renewable energy at
research firm IHS. Masdar has previously invested in the UK-based London Array, which has a
capacity of 630MW and is the world’s largest offshore power plant. The average US nuclear
power plant has a capacity of 1,347MW, according to data from the US energy information
administration.
The London Array received financial backing from the UK government last year, with the Green
Investment Bank, a state funding vehicle, lending £58.6m as part of a consortium to help Masdar
refinance its stake in the project.
Masdar also operates a 100MW concentrated solar power plant in the UAE and the 117MW Tafila
wind farm in Jordan. Offshore wind is one of the most expensive types of energy per megawatt-
hour, according to data from the Fraunhofer Institute for Solar Energy Systems, a German
research firm.
Higher costs are the result of “the need to use more resistant, more expensive materials, the
expensive process of anchoring power plants in the seafloor, cost-intensive installation and
logistics for the power plant components, [and] high maintenance costs”, according to a report
from the Fraunhofer institute.
But offshore wind investments are likely to become more economical in the future, as firms gain
expertise in offshore plant construction, the report said.
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
“As the only Opec nation supplying both traditional and renewable energy to international markets,
the UAE is committed to accelerating the use of wind energy as an effective means of balancing
the global energy mix, as we move toward a sustainable, low-carbon future,” said Sultan Al Jaber,
Masdar’s chairman.
“Combined with London Array, Dudgeon puts Masdar at the forefront of offshore wind
development in the UK,” he said. “It will significantly contribute to the expansion of the UK’s
renewable energy capacity. It also reinforces the UAE and the UK’s shared commitment to drive
the growth of the renewable energy sector.”
The UK is home to nine of the 25 largest offshore wind farms, with plans to add 4.5 gigawatts of
energy to the grid. The country overtook Denmark in 2008 as the world’s largest producer of wind
power, which accounts for about 9 per cent of the UK’s energy needs.
The UK is currently the seventh most attractive destination for companies looking to invest in
renewable energy, according to a report from the consultancy Ernst and Young, published on
Monday. The UK wind industry has an advantage due to its “solid experience, [with] nearly 5 GW
installed to date,” said Mr Dale.
The UK also has “a market having matured through six licensing rounds since 2000; and
significant potential for economies of scale [with] multi-gigawatt projects [available to consortia],”
he said. Ed Davey, the UK energy minister, said: “Masdar’s investment is a strong endorsement of
the UK as the best place in the world to invest in offshore wind.”
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
Kuwait To Ship First Crude To Egypt In October Under Long Term Deal
Reuters + NewBase
Kuwait said on Wednesday it would ship around two million barrels of crude oil in early
October to Egypt, giving it priority as a buyer ahead of sales from storage into the
Mediterranean market. The deal for two million barrels
a month of Kuwaiti crude was signed this week with
the Arab Petroleum Pipeline Co., known as SUMED.
SUMED, which owns and operates Egypt’s
Mediterranean port of Sidi Kerir, is half owned by state
run oil company Egyptian General Petroleum Corp
(EGPC) while a group of four other Gulf Arab
countries – Saudi Arabia, Kuwait, United Arab
Emirates and Qatar – own the other half.
“The storage contract with SUMED aims at streamlining crude oil exports to Europe across
the Mediterranean”, Nasser al-Mudhaf, managing director for international marketing at state
owned Kuwait Petroleum Corp (KPC) told state news agency KUNA.
The first shipment of two million barrels will go to the Egyptian Red Sea port of Ain Sukhna,
then will be pumped through pipelines to Sidi Kerir terminal. “Egypt will be given priority
according to its need”, KUNA quoted Mudhaf saying.
The SUMED pipeline allows oil firms to by-pass the shipping chokepoint of the Suez canal,
which is too small to allow the passage of fully laden very large crude carriers (VLCCs) with
cargoes of two million barrels.
The UAE, Saudi Arabia and Kuwait have together provided Egypt with billions of dollars in
grants, loans and petroleum products since former President Mohamed Mursi of the Muslim
Brotherhood was overthrown by the army last year. Last week, Egypt said it would buy 65 per
cent of its oil product imports for the next year from the UAE.
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
Oil would hit $150 without US shale: EIA
Reuters + NewBase
Crude oil would cost at least $150 a barrel due to supply disruptions in the Middle East and North
Africa were it not for rising production in North Dakota and Texas, US Energy Information
Administration (EIA) chief Adam
Sieminski said in an interview.
Oil output from the oil-rich Bakken,
Permian and Eagle Ford shale
formations in those two states, as
well as other smaller formations
around the nation, has spiked in the
past decade to more than 4 million
barrels per day.
That new oil has helped the US
weather supply disruptions from
Libya, Iraq and other one-time
major oil producers in which
political and military turmoil has
sharply depressed production,
Sieminski said ahead of the North
Dakota Petroleum Council's annual
meeting.
"If we did not have the growth in North Dakota, in the Eagle Ford and the Permian, oil could be
$150 (per barrel)," Sieminski said. "There is a long list of countries with petroleum outages that
add up to about 3 million barrels per day."
Sieminski was appointed EIA administrator by President Barack Obama in 2012. His visit to the
petroleum council's annual meeting, his first time in North Dakota, comes as Hess Corp and other
major oil producers invest billions in the state to extract and process crude and natural gas from
the Bakken shale formation.
Alongside the energy companies, commercial and residential investors have plowed billions into
new apartments, grocery stores and other projects around the western part of the state, fueling
economic growth and creating jobs.
While some have questioned whether North Dakota's oil boom will continue or peter out, as similar
oil booms did in the 1950s and 1980s, Sieminski said he expects production to continue and could
eventually hit 2 million barrels per day.
North Dakota's oil production was 1.1 million barrels per day in July, according to data released
earlier this month by state regulators.
"Our current modeling shows production in the Bakken continuing to climb, and then peak off,"
Sieminski said. "But the technology still seems to be in the early stages. Modeling changes in
technology seems to be the hardest thing to do."
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
Tokyo Gas in No Hurry to Buy More LNG from Russia Due to Sanctions
Reuters + NewBase
Tokyo Gas is in no hurry to buy more LNG from Russia due to sanctions, according to news
agency Reuters.
The Japanese gas retailer buys LNG from Sakhalin
2. Japan accounted for almost 82 percent of total
LNG sales from Russia's Sakhalin-2 LNG plant last
year, which produced 10.8 million
tonnes,Reuters stated.
"At this moment, (because) of the sensitivity of the
sanctions, probably before some resolution comes
out for the sanctions it is a bit difficult for us to
make new commitments,” Shigeru Muraki, Tokyo
Gas' vice chairman of the board, told reporters.
According to Reuters, Russia plans to add two
more LNG plants in the far east of the country
towards the end of the decade: Gazprom's
Vladivostok LNG and Rosneft's and ExxonMobil's plant on Sakhalin. It also plans to expand
Sakhalin-2.
On Wednesday, Japan imposed more sanctions on Russia because of Moscow's involvement in
the Ukraine conflict, including banning certain Russian banks from issuing securities in Japan.
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
UK: ACE platform one step closer to installation on Xcite’s Bentley oil field
Source: Arup
Arup is working with Xcite Energy Resources, Amec Group and Aibel to optimise its ACE platform design
for the Bentley oil field located in the UK Sector of the Northern North Sea. The project has now moved
into the Pre-FEED (Preliminary Front End Engineering Design) stage following the successful completion
of the conceptual design and assurance scopes of work.
Arup’s existing ACE
platform design was selected
by Xcite due to the
innovative concept having a
proven analogue to the
Bentley Field application in
addition to its ease of
installation and removal.
The platform is able to install
quickly and efficiently
without the requirement for a
specialist heavy lift vessel
which reduces the overall
schedule uncertainty and
project risk whilst having the
ability to be easily
decommissioned at the end
of field life - making it an
environmentally sensitive
and cost-effective solution.
This is Arup’s fifth generation of the ACE platform, with three units operating globally since 2001. The
fourth unit has completed detailed engineering design and is currently being fabricated locally for Shell
Philippines Exploration B.V. for installation offshore Palawan on the Malampaya Field as a Depletion
Compression Platform. The third unit delivered is the analogue for the Bentley Field; this unit has been
successfully operating for OMV on the Maari Field since 2008.
The Bentley Field is located on the East Shetland Platform in the UK Northern North Sea. The oil field is
one of the largest undeveloped fields in the North Sea and will deliver over 35 years of predictable
production.
In addition to Xcite, Amec and Aibel, Arup is working with Teekay Shipping Norway AS and other key
stakeholders to create an innovative infrastructure based development concept for the Bentley Field, based
on proven technologies for the drilling, production, storage and offloading of the oil which reduce the
overall project risk profile.
'The Bentley Field is a major asset for the UK but the harsh weather conditions can make the installation of
production facilities difficult and expensive. The self-installing ACE platform is a proven and safe,
environmentally sensitive, efficient, and cost effective solution. Arup is looking forward to continuing
working with Xcite and all the stakeholders, to support the engineering, construction and installation of the
Bentley Field ACE platform and being part of this strategic project delivering North Sea Oil for over 35
years,' said Rob Duffin, Oil and Gas Leader, Arup.
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
Cairn divests Catcher interest
Source : Carin
Cairn will sell a 10% interest in the Catcher development and adjacent acreage in the
UK North Sea.
With effect from 1 January 2014 Dyas UK Limited (Dyas) will acquire 10% in each of the following UK
Continental Shelf licences P1430, P2040, P2070, P2077 and P2086 by funding Cairn’s exploration and
development costs in respect of the licences up to a cap of $182million.
Following this transaction Cairn will retain a 20% interest in the Premier Oil-operated Catcher licence and a
reduced interest in each of the remaining licences.
As a result of this transaction Cairn will reduce its capital expenditure to the end of 2017 in the Catcher area
by approximately $380m to $200m.
Licence P1430 (Catcher) received UK Department of Energy and Climate Change (DECC) approval of its
Field Development Plan (FDP) in June 2014. Licences P2040, P2070, P2077 and P2086 are adjacent
licences in the Greater Catcher area.
Catcher is expected to produce 96 million barrels of oil equivalent with a peak production rate of around
50,000 barrels of oil per day.
The project will entail the drilling of 22 subsea wells (14 producers and 8 water injectors) on the Catcher,
Varadero and Burgman fields which will be tied back to a leased FPSO. The oil will be offloaded by tankers
while the gas will be exported through the SEGAL facilities.
Simon Thomson, Chief Executive, Cairn Energy PLC said: “Cairn remains focused on delivering value for
shareholders from disciplined capital allocation and portfolio management across a balanced asset base.
This value enhancing transaction provides us with significant additional operational flexibility to deliver the
Group’s strategy.”
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 13
US: Higher Permian production, constrained infrastructure increase
spread between WTI oil hubs. Source: U.S. Energy Information Administration, Thomson Reuters
Increasing production of crude oil in the Permian Basin in western Texas, and parts of New Mexico, has
outpaced pipeline infrastructure to move the crude to refineries, causing prices for crude in the Permian
Basin (at Midland, Texas) to fall below similar crudes priced at Cushing, Oklahoma. While the price
difference between Midland and Cushing has been increasing for almost a year, recent refinery outages in
the region caused it to widen substantially. Several infrastructure projects that will allow more crude to flow
from the Permian to the U.S. Gulf Coast are expected to come online soon, which should cause this price
difference to narrow.
The latest U.S. Energy Information Administration Drilling Productivity Report (DPR) estimates that
August Permian Basin oil production will be almost 1.7 million barrels per day (bbl/d), 0.3 million bbl/d
more than a year ago. With increased production, any loss of refinery demand can increase downward
pressure on crude oil prices in Midland. A series of recent outages at refineries located in or near the
Permian, and along the U.S. Gulf Coast caused the West Texas Intermediate (WTI) price at Midland to fall
$17.50 per barrel below the price at Cushing, a record difference. The previous record was set in late 2012
at a time when production also exceeded pipeline takeaway capacity. In 2013, the price gap closed when
Magellan Midstream Partners reversed and repurposed
part of its Longhorn Pipeline to move crude from the
Permian to Houston. Previously, this pipeline had moved
refined petroleum products from Houston, Texas to El
Paso, Texas.
In addition to the 225,000-bbl/d Longhorn Pipeline, the
first expansions on the Sunoco Logistics Partners Permian
Express pipelines and other portions of Sunoco's pipeline
system also came online in 2013. However, the increase
in crude oil production has now outgrown these
expansions, and additional pipeline expansions are under
construction. Magellan's 300,000-bbl/d BridgeTex
Pipeline, which will move crude from west Texas to
refining centers in Houston, Texas City, and Galveston, is
expected to begin operating soon. Beginning in early
2015, the Cactus Pipeline, with an expected capacity of 200,000 bbl/d, will move Permian crude south to
connect with an expanded Eagle Ford Pipeline that will deliver crude to Corpus Christi, Texas.
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 14
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,
Energy Consultant
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Mobile : +97150-4822502
khdmohd@hawkenergy.net
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. CurrentlyOil & Gas sector. CurrentlyOil & Gas sector. CurrentlyOil & Gas sector. Currently
working as Technical Affairs Specialist for Emirworking as Technical Affairs Specialist for Emirworking as Technical Affairs Specialist for Emirworking as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntaryates General Petroleum Corp. “Emarat“ with external voluntaryates General Petroleum Corp. “Emarat“ with external voluntaryates General Petroleum Corp. “Emarat“ with external voluntary
Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spenEnergy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spenEnergy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spenEnergy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spentttt
as the Gas Operations Manager in Emarat , responsible for Emaratas the Gas Operations Manager in Emarat , responsible for Emaratas the Gas Operations Manager in Emarat , responsible for Emaratas the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations .Gas Pipeline Network Facility & gas compressor stations .Gas Pipeline Network Facility & gas compressor stations .Gas Pipeline Network Facility & gas compressor stations .
Through the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructing of gas pipelines, gas metering &of gas pipelines, gas metering &of gas pipelines, gas metering &of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years wereregulating stations and in the engineering of supply routes. Many years wereregulating stations and in the engineering of supply routes. Many years wereregulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation ,spent drafting, & compiling gas transportation ,spent drafting, & compiling gas transportation ,spent drafting, & compiling gas transportation ,
operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many ofoperation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many ofoperation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many ofoperation & 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 Oil & Gas Conferences held in the UAE andthe Oil & Gas Conferences held in the UAE andthe Oil & Gas Conferences held in the UAE and Energy program broadcasted internatEnergy program broadcasted internatEnergy program broadcasted internatEnergy program broadcasted internationally , via GCC leading satelliteionally , via GCC leading satelliteionally , via GCC leading satelliteionally , via GCC leading satellite
Channels .Channels .Channels .Channels .
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 25 September 2014 K. Al Awadi

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Saudi Arabia slashes CO2 emissions by 800K tons

  • 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 25 September 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Iraq: ShaMaran Petroleum provides Atrush drilling update Source: ShaMaran Petroleum ShaMaran Petroleum has provided an operational update on the Atrush development in the Kurdistan Region of Iraq.The DQE31 drilling rig resumed drilling operations on the Chiya Chere-8 ('CK-8') on August 30, 2014 and reached a Total Depth of 2195 metres on September 13, 2014. The bottom hole location is approx. 1.4 ESE of the surface location and the AT-1 discovery well. CK-8 was spudded on July 19, 2014 and reached TD in 33 days. The well found the top of Jurassic reservoir approx. 90 metres structurally higher than the AT-1 discovery well. This well completes the predrilling of the initial four producers for the Phase One facilities, namely AT-2, AT-4, CK-5and CK-8. The well is on schedule to be tested using a service rig in 2015 prior to final completion and tie-in to the Phase 1 Production Facility. The EDC Romfor 25 drilling rig is currently being mobilised to the Atrush Block and preparing to spud the Chiya Khere-6 ('CK-6') Phase 2 appraisal well. The well is located in the eastern part
  • 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 of the structure and is being drilled from the same well pad as the Atrush-3 appraisal well ('AT- 3'). CK-6 is being drilled to a planned total depth of 2,164 metres targeting the Jurassic reservoir approx. 1.1 km SE of the surface location and the AT-3 well (approx. 10.3 kms east of the AT-1 discovery well). The drilling of the CK-6 well is estimated to take up to 70 days. The current plan is for the rig to conduct the retest of AT-3 following the testing of CK-6. In August 2014 initial work commenced for the construction of the Right of Way for the Atrush feeder pipeline over the Chiya Khere mountain section. ShaMaran Petroleum Corp. holds a 20.1% working interest through its wholly owned subsidiary, ShaMaran Ventures (100% owner of General Exploration Partners, Inc.) in the Atrush Block.
  • 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 Gulf Petrochem acquires Shell’s bitumen plant in India Gulf News + NewBase UAE-based Gulf Petrochem on Wednesday announced its acquisition of the Royal Dutch Shell Specialties Bitumen plant at Savli, near Vadodara in Gujarat, India. The acquisition, through a direct purchase, will complement the construction of a high capacity storage terminal for various petroleum products at Pipavav in Gujarat and meet the ever increasing demand for Bitumen Specialty products in West and North India, the company said in a statement. Gulf Petrochem will begin to manufacture 30,000 MT per annum of Bitumen Specialty products that includes Bitumen Emulsions, Micro-surfacing Emulsions, Crumb Rubber Modified Bitumen, Polymer Modified Bitumen and various other Cold Mix road construction products. The company will also upgrade the plant to manufacture Bitumen products that adhere to new specifications laid down by Indian Roads Congress. Manan Goel, Group Director at Gulf Petrochem, said that the acquisition has helped increase our product portfolio with petroleum products that we can market and deliver through our storage, shipping, manufacturing and terminal businesses. “It mirrors our growth strategy because we have enhanced our integration solution in India and consolidated our position as the only company in the region that is actively present in both conventional bitumen and specialty products.” The company said that under Gulf Petrochem ownership, the plant will meet the demand for different packages such 200 Kg MS drums, 200 Kg MS Reconditioned drums, 200 Kg HDPE drums and Bulk in tankers. The company also plans to provide poly bag packing for modified bitumen products and expand manufacturing capabilities to supply a variety of grades and specifications as per IS, ASTM, AASHTO and BS standards.
  • 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 Kingdom to slash CO2 emissions by 800,000 tons per year Saudi Gazette + NewBase Saudi Arabia’s “CO2-Enhanced Oil Recovery” project will reduce carbon dioxide (CO2) emissions by 800,000 tons per year in 2015, Saudi Oil Minister Ali Al-Naimi said in a speech at the UN Climate Summit in New York on Wednesday. He added “one of our private companies is currently engaged in a project to capture and use carbon dioxide in the production of other materials of economic value. The project will reduce carbon dioxide emissions by 500,000 tons per year.” He further said that in line with the Kyoto Protocol, Saudi Arabia has established the National Committee for Clean Development Mechanism to manage and implement CDM projects. In the area of clean and renewable energy future, King Abdullah City for Atomic and Renewable Energy (K.A.CARE) was established with the aim of building a sustainable future for the Kingdom of Saudi Arabia by introducing renewable energy sources to the local energy landscape, Al Naimi remarked. “Saudi Arabia has paid great attention to educating its younger generations about solar energy. We know that the development of these energy sources will serve the Kingdom’s basic and long-term economic interest,” he noted. Citing the comprehensive development renaissance, and political, security and economic stability that the Kingdom achieved under the wise leadership of the Custodian of the Two Holy Mosques King Abdullah, Al- Naimi underscored commitment to address and managing greenhouse gas emissions, in cooperation with the international community. “Saudi Arabia believes that the reduction of greenhouse gas emissions must be achieved without undermining the economic growth, or negatively affecting the social development, or destabilizing
  • 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 the global energy market. We are well aware of the mutual relationship between the effects of climate change and importance of sustainable development,” he said. Moreover, he said Saudi Arabia stressed that the international response to climate change must fully respect the principles and provisions of the United Nations Framework Convention on Climate Change, particularly the principle of common but differentiated responsibility (CBDR). He said the National Program for the Management and Rationalization of Energy Consumption, inaugurated in 2008, has been transformed to a permanent national center to rationalize energy around Kingdom to improve efficient energy production and consumption. It also aims to unify efforts among different entities in the Kingdom to efficiently reserve and utilize energy, while contributing to the environment preservation efforts. The Kingdom has allocated substantial funding to research and development in clean energy. It has created the ‘King Abdullah Petroleum Studies and Research’ which aims to become a global center for all types of energy research and related policies and economics, technology, and environmental technologies. The Kingdom has also built the ‘King Abdullah University of Science and Technology’ for advanced scientific research in the field of energy and the environment. Other universities in the Kingdom are contributing to this effort. The Saudi oil minister underlined that Saudi Arabia believes that setting rigorous though ill- considered goals will not achieve the goal of reducing greenhouse gas emissions unless the national circumstances and capacities of each country is taken into account, and they are in line with the different stages of economic development. Hence, the Kingdom is aware of the importance of partnership and collaboration between the public and private sector in climate activities and international initiatives that help states and private sectors to achieve the objectives in a comprehensive and balanced manner. The Kingdom has made progress to join international initiatives to support its national efforts, he pointed out. He stressed that cutting-edge technology will provide a lot of solutions to environmental challenges in order foster environmentally-friendly economic and social development around the globe. And to realized the goal, Al-Naimi said countries and individuals, are responsible for addressing the environmental challenges. “But we must bear in mind that developed countries need to take the lead in this area based on their potential and historic responsibility,” he noted.
  • 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 Masdar buys 35% stake in UK biggest offshore wind farms The National + NewBase Masdar, Abu Dhabi’s renewable energy company, has bought a stake in what is set to be the world’s fourth-largest offshore wind farm just off the UK’s Norfolk coast. Masdar invested £525 million (Dh3.16 billion) for a 35 per cent stake in the £1.5bn Dudgeon project, the UK government said. Construction of the wind farm, which is set to have a capacity of 402 megawatts, enough to power about 410,000 homes, is scheduled to be completed in late 2017. Masdar will partner with the state- owned Norwegian energy firm Statoil, which retains a 35 per cent stake in the project and will operate the farm. The remaining 30 per cent is held by Statkraft, Norway’s state-owned electricity firm. In July, Siemens was awarded a £516m contract for the construction and maintenance of the Dudgeon wind turbines. “Masdar has gained important experience in offshore wind, and is now looking to commit further to the sector. The UK offers experienced firms and good growth prospects, and is a natural market choice for investments in offshore wind,” said Magnus Dale, who covers renewable energy at research firm IHS. Masdar has previously invested in the UK-based London Array, which has a capacity of 630MW and is the world’s largest offshore power plant. The average US nuclear power plant has a capacity of 1,347MW, according to data from the US energy information administration. The London Array received financial backing from the UK government last year, with the Green Investment Bank, a state funding vehicle, lending £58.6m as part of a consortium to help Masdar refinance its stake in the project. Masdar also operates a 100MW concentrated solar power plant in the UAE and the 117MW Tafila wind farm in Jordan. Offshore wind is one of the most expensive types of energy per megawatt- hour, according to data from the Fraunhofer Institute for Solar Energy Systems, a German research firm. Higher costs are the result of “the need to use more resistant, more expensive materials, the expensive process of anchoring power plants in the seafloor, cost-intensive installation and logistics for the power plant components, [and] high maintenance costs”, according to a report from the Fraunhofer institute. But offshore wind investments are likely to become more economical in the future, as firms gain expertise in offshore plant construction, the report said.
  • 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 “As the only Opec nation supplying both traditional and renewable energy to international markets, the UAE is committed to accelerating the use of wind energy as an effective means of balancing the global energy mix, as we move toward a sustainable, low-carbon future,” said Sultan Al Jaber, Masdar’s chairman. “Combined with London Array, Dudgeon puts Masdar at the forefront of offshore wind development in the UK,” he said. “It will significantly contribute to the expansion of the UK’s renewable energy capacity. It also reinforces the UAE and the UK’s shared commitment to drive the growth of the renewable energy sector.” The UK is home to nine of the 25 largest offshore wind farms, with plans to add 4.5 gigawatts of energy to the grid. The country overtook Denmark in 2008 as the world’s largest producer of wind power, which accounts for about 9 per cent of the UK’s energy needs. The UK is currently the seventh most attractive destination for companies looking to invest in renewable energy, according to a report from the consultancy Ernst and Young, published on Monday. The UK wind industry has an advantage due to its “solid experience, [with] nearly 5 GW installed to date,” said Mr Dale. The UK also has “a market having matured through six licensing rounds since 2000; and significant potential for economies of scale [with] multi-gigawatt projects [available to consortia],” he said. Ed Davey, the UK energy minister, said: “Masdar’s investment is a strong endorsement of the UK as the best place in the world to invest in offshore wind.”
  • 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 Kuwait To Ship First Crude To Egypt In October Under Long Term Deal Reuters + NewBase Kuwait said on Wednesday it would ship around two million barrels of crude oil in early October to Egypt, giving it priority as a buyer ahead of sales from storage into the Mediterranean market. The deal for two million barrels a month of Kuwaiti crude was signed this week with the Arab Petroleum Pipeline Co., known as SUMED. SUMED, which owns and operates Egypt’s Mediterranean port of Sidi Kerir, is half owned by state run oil company Egyptian General Petroleum Corp (EGPC) while a group of four other Gulf Arab countries – Saudi Arabia, Kuwait, United Arab Emirates and Qatar – own the other half. “The storage contract with SUMED aims at streamlining crude oil exports to Europe across the Mediterranean”, Nasser al-Mudhaf, managing director for international marketing at state owned Kuwait Petroleum Corp (KPC) told state news agency KUNA. The first shipment of two million barrels will go to the Egyptian Red Sea port of Ain Sukhna, then will be pumped through pipelines to Sidi Kerir terminal. “Egypt will be given priority according to its need”, KUNA quoted Mudhaf saying. The SUMED pipeline allows oil firms to by-pass the shipping chokepoint of the Suez canal, which is too small to allow the passage of fully laden very large crude carriers (VLCCs) with cargoes of two million barrels. The UAE, Saudi Arabia and Kuwait have together provided Egypt with billions of dollars in grants, loans and petroleum products since former President Mohamed Mursi of the Muslim Brotherhood was overthrown by the army last year. Last week, Egypt said it would buy 65 per cent of its oil product imports for the next year from the UAE.
  • 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 Oil would hit $150 without US shale: EIA Reuters + NewBase Crude oil would cost at least $150 a barrel due to supply disruptions in the Middle East and North Africa were it not for rising production in North Dakota and Texas, US Energy Information Administration (EIA) chief Adam Sieminski said in an interview. Oil output from the oil-rich Bakken, Permian and Eagle Ford shale formations in those two states, as well as other smaller formations around the nation, has spiked in the past decade to more than 4 million barrels per day. That new oil has helped the US weather supply disruptions from Libya, Iraq and other one-time major oil producers in which political and military turmoil has sharply depressed production, Sieminski said ahead of the North Dakota Petroleum Council's annual meeting. "If we did not have the growth in North Dakota, in the Eagle Ford and the Permian, oil could be $150 (per barrel)," Sieminski said. "There is a long list of countries with petroleum outages that add up to about 3 million barrels per day." Sieminski was appointed EIA administrator by President Barack Obama in 2012. His visit to the petroleum council's annual meeting, his first time in North Dakota, comes as Hess Corp and other major oil producers invest billions in the state to extract and process crude and natural gas from the Bakken shale formation. Alongside the energy companies, commercial and residential investors have plowed billions into new apartments, grocery stores and other projects around the western part of the state, fueling economic growth and creating jobs. While some have questioned whether North Dakota's oil boom will continue or peter out, as similar oil booms did in the 1950s and 1980s, Sieminski said he expects production to continue and could eventually hit 2 million barrels per day. North Dakota's oil production was 1.1 million barrels per day in July, according to data released earlier this month by state regulators. "Our current modeling shows production in the Bakken continuing to climb, and then peak off," Sieminski said. "But the technology still seems to be in the early stages. Modeling changes in technology seems to be the hardest thing to do."
  • 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 Tokyo Gas in No Hurry to Buy More LNG from Russia Due to Sanctions Reuters + NewBase Tokyo Gas is in no hurry to buy more LNG from Russia due to sanctions, according to news agency Reuters. The Japanese gas retailer buys LNG from Sakhalin 2. Japan accounted for almost 82 percent of total LNG sales from Russia's Sakhalin-2 LNG plant last year, which produced 10.8 million tonnes,Reuters stated. "At this moment, (because) of the sensitivity of the sanctions, probably before some resolution comes out for the sanctions it is a bit difficult for us to make new commitments,” Shigeru Muraki, Tokyo Gas' vice chairman of the board, told reporters. According to Reuters, Russia plans to add two more LNG plants in the far east of the country towards the end of the decade: Gazprom's Vladivostok LNG and Rosneft's and ExxonMobil's plant on Sakhalin. It also plans to expand Sakhalin-2. On Wednesday, Japan imposed more sanctions on Russia because of Moscow's involvement in the Ukraine conflict, including banning certain Russian banks from issuing securities in Japan.
  • 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 UK: ACE platform one step closer to installation on Xcite’s Bentley oil field Source: Arup Arup is working with Xcite Energy Resources, Amec Group and Aibel to optimise its ACE platform design for the Bentley oil field located in the UK Sector of the Northern North Sea. The project has now moved into the Pre-FEED (Preliminary Front End Engineering Design) stage following the successful completion of the conceptual design and assurance scopes of work. Arup’s existing ACE platform design was selected by Xcite due to the innovative concept having a proven analogue to the Bentley Field application in addition to its ease of installation and removal. The platform is able to install quickly and efficiently without the requirement for a specialist heavy lift vessel which reduces the overall schedule uncertainty and project risk whilst having the ability to be easily decommissioned at the end of field life - making it an environmentally sensitive and cost-effective solution. This is Arup’s fifth generation of the ACE platform, with three units operating globally since 2001. The fourth unit has completed detailed engineering design and is currently being fabricated locally for Shell Philippines Exploration B.V. for installation offshore Palawan on the Malampaya Field as a Depletion Compression Platform. The third unit delivered is the analogue for the Bentley Field; this unit has been successfully operating for OMV on the Maari Field since 2008. The Bentley Field is located on the East Shetland Platform in the UK Northern North Sea. The oil field is one of the largest undeveloped fields in the North Sea and will deliver over 35 years of predictable production. In addition to Xcite, Amec and Aibel, Arup is working with Teekay Shipping Norway AS and other key stakeholders to create an innovative infrastructure based development concept for the Bentley Field, based on proven technologies for the drilling, production, storage and offloading of the oil which reduce the overall project risk profile. 'The Bentley Field is a major asset for the UK but the harsh weather conditions can make the installation of production facilities difficult and expensive. The self-installing ACE platform is a proven and safe, environmentally sensitive, efficient, and cost effective solution. Arup is looking forward to continuing working with Xcite and all the stakeholders, to support the engineering, construction and installation of the Bentley Field ACE platform and being part of this strategic project delivering North Sea Oil for over 35 years,' said Rob Duffin, Oil and Gas Leader, Arup.
  • 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 Cairn divests Catcher interest Source : Carin Cairn will sell a 10% interest in the Catcher development and adjacent acreage in the UK North Sea. With effect from 1 January 2014 Dyas UK Limited (Dyas) will acquire 10% in each of the following UK Continental Shelf licences P1430, P2040, P2070, P2077 and P2086 by funding Cairn’s exploration and development costs in respect of the licences up to a cap of $182million. Following this transaction Cairn will retain a 20% interest in the Premier Oil-operated Catcher licence and a reduced interest in each of the remaining licences. As a result of this transaction Cairn will reduce its capital expenditure to the end of 2017 in the Catcher area by approximately $380m to $200m. Licence P1430 (Catcher) received UK Department of Energy and Climate Change (DECC) approval of its Field Development Plan (FDP) in June 2014. Licences P2040, P2070, P2077 and P2086 are adjacent licences in the Greater Catcher area. Catcher is expected to produce 96 million barrels of oil equivalent with a peak production rate of around 50,000 barrels of oil per day. The project will entail the drilling of 22 subsea wells (14 producers and 8 water injectors) on the Catcher, Varadero and Burgman fields which will be tied back to a leased FPSO. The oil will be offloaded by tankers while the gas will be exported through the SEGAL facilities. Simon Thomson, Chief Executive, Cairn Energy PLC said: “Cairn remains focused on delivering value for shareholders from disciplined capital allocation and portfolio management across a balanced asset base. This value enhancing transaction provides us with significant additional operational flexibility to deliver the Group’s strategy.”
  • 13. 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 13 US: Higher Permian production, constrained infrastructure increase spread between WTI oil hubs. Source: U.S. Energy Information Administration, Thomson Reuters Increasing production of crude oil in the Permian Basin in western Texas, and parts of New Mexico, has outpaced pipeline infrastructure to move the crude to refineries, causing prices for crude in the Permian Basin (at Midland, Texas) to fall below similar crudes priced at Cushing, Oklahoma. While the price difference between Midland and Cushing has been increasing for almost a year, recent refinery outages in the region caused it to widen substantially. Several infrastructure projects that will allow more crude to flow from the Permian to the U.S. Gulf Coast are expected to come online soon, which should cause this price difference to narrow. The latest U.S. Energy Information Administration Drilling Productivity Report (DPR) estimates that August Permian Basin oil production will be almost 1.7 million barrels per day (bbl/d), 0.3 million bbl/d more than a year ago. With increased production, any loss of refinery demand can increase downward pressure on crude oil prices in Midland. A series of recent outages at refineries located in or near the Permian, and along the U.S. Gulf Coast caused the West Texas Intermediate (WTI) price at Midland to fall $17.50 per barrel below the price at Cushing, a record difference. The previous record was set in late 2012 at a time when production also exceeded pipeline takeaway capacity. In 2013, the price gap closed when Magellan Midstream Partners reversed and repurposed part of its Longhorn Pipeline to move crude from the Permian to Houston. Previously, this pipeline had moved refined petroleum products from Houston, Texas to El Paso, Texas. In addition to the 225,000-bbl/d Longhorn Pipeline, the first expansions on the Sunoco Logistics Partners Permian Express pipelines and other portions of Sunoco's pipeline system also came online in 2013. However, the increase in crude oil production has now outgrown these expansions, and additional pipeline expansions are under construction. Magellan's 300,000-bbl/d BridgeTex Pipeline, which will move crude from west Texas to refining centers in Houston, Texas City, and Galveston, is expected to begin operating soon. Beginning in early 2015, the Cactus Pipeline, with an expected capacity of 200,000 bbl/d, will move Permian crude south to connect with an expanded Eagle Ford Pipeline that will deliver crude to Corpus Christi, Texas.
  • 14. 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 14 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, Energy Consultant MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990 Mobile : +97150-4822502 khdmohd@hawkenergy.net 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. CurrentlyOil & Gas sector. CurrentlyOil & Gas sector. CurrentlyOil & Gas sector. Currently working as Technical Affairs Specialist for Emirworking as Technical Affairs Specialist for Emirworking as Technical Affairs Specialist for Emirworking as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntaryates General Petroleum Corp. “Emarat“ with external voluntaryates General Petroleum Corp. “Emarat“ with external voluntaryates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spenEnergy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spenEnergy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spenEnergy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spentttt as the Gas Operations Manager in Emarat , responsible for Emaratas the Gas Operations Manager in Emarat , responsible for Emaratas the Gas Operations Manager in Emarat , responsible for Emaratas the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations .Gas Pipeline Network Facility & gas compressor stations .Gas Pipeline Network Facility & gas compressor stations .Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructing of gas pipelines, gas metering &of gas pipelines, gas metering &of gas pipelines, gas metering &of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years wereregulating stations and in the engineering of supply routes. Many years wereregulating stations and in the engineering of supply routes. Many years wereregulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation ,spent drafting, & compiling gas transportation ,spent drafting, & compiling gas transportation ,spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many ofoperation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many ofoperation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many ofoperation & 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 Oil & Gas Conferences held in the UAE andthe Oil & Gas Conferences held in the UAE andthe Oil & Gas Conferences held in the UAE and Energy program broadcasted internatEnergy program broadcasted internatEnergy program broadcasted internatEnergy program broadcasted internationally , via GCC leading satelliteionally , via GCC leading satelliteionally , via GCC leading satelliteionally , via GCC leading satellite Channels .Channels .Channels .Channels . NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE NewBase 25 September 2014 K. Al Awadi