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NewBase Energy News 17 June 2023 No. 1630 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: High-level delegation from GCCIA learns about DEWA’s
efforts in renewable energy
WAM-Tariq Al Fahaam
A high-level delegation from the GCC Interconnection Authority (GCCIA), led by Ahmed Ali Al-
Ebrahim, CEO of the GCCIA, visited the Mohammed bin Rashid Al Maktoum Solar Park, which
Dubai Electricity and Water Authority (DEWA) is implementing.
The visit aimed to gain insights into DEWA’s experience in developing sustainable energy
technologies. The delegation was briefed by DEWA’s officials about the latest photovoltaic solar
panels and concentrated solar power (CSP) technologies used at the solar park, as well as DEWA’s
efforts in innovation and research and development (R&D) in renewable and clean energy.
The visit included tours of both the Innovation Centre and the R&D Centre at the solar park.
“We are keen to share our successful experience in the renewable and clean energy sector with
relevant ministries and organisations regionally and globally, especially the GCCIA, which
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exemplifies economic integration and cooperation, ensuring the security of the GCC’s power grid.
This fosters mutual benefits and enhances the region’s energy sector.
The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world
based on the Independent Power Producer (IPP) model, with a planned production capacity of 5,000
MW by 2030.
It contributes to the realisation of the wise leadership’s vision to promote sustainability, innovation
and the transition towards a sustainable green economy, in line with the Dubai Clean Energy
Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy to provide 100% of Dubai’s total
power production capacity from clean energy sources by 2050,” said Saeed Mohammed Al Tayer,
MD & CEO of DEWA.
DEWA raises awareness about renewable and clean energy and sustainability through the
Innovation Centre. It offers visitors a unique experience to explore the latest innovations in clean
energy technologies.
The first-floor exhibition focuses on DEWA’s journey, vital historical inventions and innovations in
electricity, and the latest renewable and sustainable energy developments.
The R&D Centre at the solar park aims to bolster the UAE’s research and development sector,
provide it with qualified national competencies, and support the scientific community through
knowledge dissemination and developing Emirati researchers’ skills and capabilities.
With its pioneering projects, valuable partnerships and innovative developments, the Centre
supports DEWA’s vision to become a globally leading sustainable innovative corporation committed
to achieving Net-Zero by 2050.
After the visit, the GCCIA delegation praised DEWA’s commitment to renewable and clean energy
and thanked DEWA’s officials for the opportunity to learn about the various phases of the
Mohammed bin Rashid Al Maktoum Solar Park as well as the efforts and projects of the R&D Centre
and the Innovation Centre.
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UAE: Veolia acquires big hazardous waste facilities from Adnoc
TradeArabia News Service
French water management specialist Veolia has announced that its consortium with Abu Dhabi-
based investment company ADQ and Saudi-based Vision Invest has reached the financial close for
the acquisition of two hazardous industrial waste treatment plants at Al Ruwais Industrial City in Abu
Dhabi.
The conditional agreement for
this transaction was signed by
the consortium with Adnoc
Refining in November last
year, said the statement from
Veolia.
Adnoc Refining is a joint
venture between Abu Dhabi
National Oil Company
(Adnoc) which has a majority
65% stake, Italian energy
group Eni with 20% and
Austrian oil company OMV
with 15%.
It operates the world’s fourth
largest single-site refinery in Al Ruwais processing more than 922,000 barrels of crude and
condensate each day. As a pioneer and leading provider of hazardous waste management
solutions in the Middle East, Veolia will lead the waste management operations in Al Ruwais,
leveraging its comprehensive expertise covering the entire hazardous waste treatment chain.
Veolia will have 50.1% participation in the operating company alongside Vision Invest (24.95%) and
ADQ (24.95%), said the statement.
The solutions developed by the French water management expert will specifically focus on
maximizing the resource recovery (water and oil) from the oil and gas hazardous waste to reuse
them in nearby industrial plants, setting up an innovative circular economy and local energy loops.
The consortium will also significantly expand the existing solar farm to produce more locally sourced
green energy, it added.
With an annual capacity of nearly 70,000 tonnes, Veolia and its partners will treat the hazardous
industrial waste of Abu Dhabi’s biggest industrial complex in Al Ruwais, which includes the largest
oil refinery in the Middle East.
According to Veolia, the acquisition of plants was financed through a combination of equity and long
term non-recourse project finance debt with completion contingent interest rate hedges put in place
last November.
Natixis and Arab Petroleum Investments Corporation (Apicorp) acted as the mandated lead
arranger and structuring banks. JP Morgan and Natixis acted as the contingent hedge and hedge
providers.-
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Iraq: Gulf Keystone Petroleum provides operational update
Source: Gulf Keystone Petroleum
Gulf Keystone Petroleum, a leading independent operator and producer in the Kurdistan Region of
Iraq, has provided an operational and corporate update ahead of its AGM.
Jon Harris, Gulf Keystone's Chief Executive Officer, said:
'Gulf Keystone entered 2023 following a year of strong operational and financial performance and
continued delivery against the Company’s disciplined strategy of investing in profitable production
growth, sustainable shareholder returns and maintaining a strong balance sheet.
Following the suspension of Kurdistan crude exports on 25 March 2023 and continued delays to oil
sales payments, our focus has shifted to aggressively reducing all costs to preserve liquidity, while
maintaining safe operational readiness to quickly restart production. We are now exploring potential
options to sell our crude to local buyers.
While no timeline has been publicly announced, we continue to believe the suspension of exports
will be temporary and that the KRG will resume more normalised payments. We are encouraged by
the ongoing engagement between the KRG, Iraq and Turkey and note the approval earlier this week
of the Iraqi Federal budget, which is a step in the right direction towards formal recognition of
Kurdistan production by Iraq and potentially paves the way for monthly budget transfers from Iraq
to the Kurdistan Regional Government (“KRG”). We continue to closely monitor the situation.'
Operational
 Production from the Shaikan Field remains shut-in following the suspension of
exports and closure of the Iraq-Turkey Pipeline on 25 March 2023
o The suspension has resulted in a gross production deferment to date
of around 4.3 million barrels, or approximately 11,800 bopd on a full-
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year basis (2023 gross average production guidance prior to
suspension: 46,000 - 52,000 bopd)
 Almost all operational activity in the Shaikan Field has stopped since the pipeline
closure in order to preserve liquidity
o Production facilities currently ready to resume production
o All drilling and well workover activity halted, with the drilling rig
released following the completion and hook-up of SH-18
o All expansion activity suspended, including the installation of water
handling
o Progressing critical safety upgrades and maintenance activity
o No Lost Time Incidents for over 150 days
 Currently exploring opportunities to sell Shaikan Field crude to local buyers
o Potential opportunities to initially sell a portion of PF-1 production at
prices in line with the local market
o Logistics in place to quickly restart trucking operations
Financial
 The Company continues to engage with the KRG regarding outstanding
receivables for the months of October 2022 to March 2023 totalling $151
million net on the basis of the KBT pricing mechanism
 Net capital expenditures to the end of May 2023 are estimated at $49
million, including completion of SH-17 and SH-18, well workovers, well pad
preparation, long lead items and expansion of production facilities
 Cash balance of $93 million at 15 June 2023
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Outlook
 The Company continues to believe that the suspension of exports will be
temporary and that the KRG will resume more normalised payments
o While no official timeline to restart pipeline operations has been
announced, the Company understands that discussions
between the KRG, the Iraqi Ministry of Oil and the Turkish
authorities remain ongoing
o The KRG announced that it had reached an agreement with the
Iraqi government on measures to allow the resumption of oil
exports through Turkey, and also reported that Iraq's State Oil
Marketing Organization (“SOMO”) had officially requested
Turkish authorities to allow Kurdistan’s oil exports via the
country's Ceyhan port
o Iraq’s parliament recently approved the 2023-2025 Federal
Iraqi budget, a step towards formal recognition of Kurdistan
production by Iraq and potentially paving the way for monthly
budget transfers from Iraq to Kurdistan
o The Company continues to monitor the situation and is
currently ready to resume production
 The Company remains focussed on preserving liquidity while proactively
managing existing accounts payable
 Lowering net capital expenditures, operating costs and G&A to a monthly run rate
of around $6 million net from July 2023
o 2023 net capex currently estimated at $70-$75 million (previously
revised guidance of $80-$85 million)
 Estimated $49m net capex Jan-May 2023; estimated
$20-$25m of safety critical and contractual
commitments remaining for Jun-Dec 2023
o 20% deferral of Executive Director salaries & Non-Executive Director
fees and reduced staffing and contractor levels
o Final 2022 ordinary annual dividend of $25 million cancelled, as
announced on 23 May 2023, with the reinstatement of distributions
to be considered once regular KRG payments resume
 Continuing to review additional liquidity options, including local crude and
inventory sales and further cost reductions
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Nigeria regains position as Africa’s largest oil producer in May
Staff Writer, ZAWYA
Nigeria is ranked as Africa’s largest crude oil producer in May 2023, according to the latest data
released by the Organization of Petroleum Producing Countries (OPEC). Nigeria reported 1.18
million barrels per day of oil production last month from 999,000 barrels in April.
In the ranking, Libya secured the second spot with a slight decrease in crude production to 1.15
million barrels per day in May from 1.21 million barrels in April. Angola followed closely in the third
position, with a production of 1.11 million barrels per day, up from 1.06 million barrels in April.
OPEC's report highlighted that global crude oil production, citing secondary sources, reached 28.06
million barrels per day in May. Nigeria, Iran, and Angola contributed to the increase in output, while
Saudi Arabia, the UAE, and Kuwait witnessed a decline.
Consequently, global production declined from the 28.52 million barrels reported in April, the report
said. After a decades-long civil war in Angola ended in 2002, Angola’s crude oil production grew
rapidly and, in February 2008, briefly surpassed Nigeria’s crude oil production for the first time.
Production in Angola has remained, for the most part, nearly the same as production in Nigeria
since then. In 2016, disruptions to Nigeria’s crude oil production, stemming from militant attacks on
oil export infrastructure, resulted in Angola surpassing Nigeria’s crude oil production for more than
a year.
In the third quarter of 2022, operators of the Trans Niger pipeline and the Forcados export
terminal closed their facilities for repairs. The closures triggered a sharp drop in Nigeria's crude oil
output, from 1.1 million barrels per day (b/d) in the second quarter to below 1 million b/d in the third
quarter.
Nigeria’s production recovered by the beginning of 2023, but an oil workers’ strike disrupted
production again in April 2023. Crude oil production in Nigeria fell to slightly more than 1 million b/d
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in April of this year, dropping below Angola’s production, which was estimated at 1.1 million b/d that
month.
The Nigerian government has taken steps to make Nigeria more attractive for oil and natural gas
investment. On August 16, 2021, the Petroleum Industry Act was passed in Nigeria. The legislation
is the culmination of a 20-year effort to overhaul the hydrocarbon industry’s legal framework, attract
investor interest in upstream development, and address grievances of communities affected by oil
extraction.
Changes to Nigeria’s hydrocarbons legal framework include:
 Creating two distinct industry regulators: the Nigerian Upstream Regulatory Commission and
the Nigerian Midstream and Downstream Petroleum Regulatory Authority
 Restructuring the Nigerian National Petroleum Corporation (the national oil company)
 Lowering the tax and royalty structure for crude oil production
 Modifying terms and conditions for upstream licensing and leasing
Despite the legislative changes, oil theft and sabotage to export infrastructure continue to be major
concerns because the damage causes production losses and environmental pollution. Crude oil
disruptions often force oil companies to shut down production and limit their ability to export crude
oil.
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Egypt to launch 2 oil & N.Gas exploration tenders by end-2023
Arab Finance
Arab Finance: Egypt is planning to offer two tenders for oil and gas exploration in at least 16 blocks
south of the country and across the Mediterranean by the end of 2023, two government sources
told Asharq Business on June 14th.
One of these tenders will be launched for exploration in 8 blocks affiliated with the Egyptian General
Petroleum Corporation (EGPC), while the second one will be for oil and gas exploration in at least
8 blocks affiliated with the South Valley Egyptian Petroleum Holding Company (Ganope), one
source noted.
It will be the first time for Ganope’s blocks to be offered for bidding since 2019, the other source
said.
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NewBase June 17 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil gains for the week as supply cuts balance demand concerns
Reuters + NewBase
Oil rose on Friday and posted a weekly gain, as higher Chinese demand and OPEC+ supply cuts
lifted prices, despite expected weakness in the global economy and the prospect for further interest
rate hikes.
Brent crude gained 94 cents to settle at $76.61 a barrel. U.S. West Texas Intermediate (WTI) crude
rose $1.16 to $71.78. Brent posted a weekly gain of 2.4% and WTI rose 2.3%.
Oil has gained this week on hopes of growing Chinese demand. China's refinery throughput rose in
May to its second-highest total on record and Kuwait Petroleum Corp's CEO expects Chinese
demand to keep climbing during the second half.
Also supporting crude are the voluntary output cuts implemented in May by the Organization of the
Petroleum Exporting Countries (OPEC) and its allies, plus an additional cut by Saudi Arabia in July.
Russian Energy Minister Nikolai Shulginov said it was "realistic" to reach oil prices of around $80
per barrel, Russian state news agencies reported.
Oil price special
coverage
 China's May refinery runs hit second-highest total on record
 Russia says 'realistic' for oil prices to reach $80/bbl
 Bank of England expected to raise interest rates next week
 U.S. oil rigs fall to lowest since April 2022
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Shulginov also said Russian oil and gas condensate production is expected to fall by around 20
million tonnes (400,000 barrels per day) this year, reiterating Russia's expectations.
In Iran, crude exports and oil output have hit new highs in 2023 despite U.S. sanctions, according
to consultants, shipping data and a source familiar with the matter, adding to global supply when
other producers are limiting output.
U.S. oil rigs fell by four to 552 this week, their lowest since April 2022, while gas rigs fell by five to
130, their lowest since March 2022, energy services firm Baker Hughes Co (BKR.O) said.
Capping oil price gains was the prospect of rising interest rates, which could slow economic growth.
The Bank of England is set to raise interest rates by a quarter of a percentage point next week. The
European Central Bank lifted rates to a 22-year high on Thursday and the U.S. Federal Reserve
signalled at least a half of a percentage point increase by year-end.
Investors have been closely watching interest rates and commentary from Fed members.
"We're going to be going from Fed speaker to Fed speaker, and data point to data point," Phil Flynn,
an analyst at Price Futures Group, said of oil prices.
Money managers cut their net long U.S. crude futures and options positions by 13,191 contracts to
73,273 in the week to June 13, the U.S. Commodity Futures Trading Commission (CFTC) said.
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NewBase Specifical Coverage
The Energy world –June-17 -2023
CLEAN ENERGY
Growth in global oil demand is set to slow significantly by 2028
IEA
Global oil markets are gradually recalibrating after three turbulent years in which they were upended
first by the Covid-19 pandemic and then by the Russian Federation’s (hereafter “Russia”) invasion
of Ukraine.
Benchmark crude oil prices are back below pre-war levels and refined product cracks have now
come off all- time highs after rising supplies coincided with a marked slowdown in oil demand growth
in advanced economies.
Moreover, an unprecedented reshuffling of global trade flows and two consecutive emergency
stock releases by IEA member countries in 2022 allowed industry inventories to rebuild, easing
market tensions.
While the market could significantly tighten in the coming months as OPEC+ production cuts temper
the upswing in global oil supplies, the outlook improves over our 2022-28 forecast period. Russia’s
invasion of Ukraine sparked a surge in oil prices and brought security of supply concerns to the fore,
helping accelerate deployment of clean energy technologies.
At the same time, upstream investments in 2023 are expected to reach to their highest levels since
2015.
Our projections assume major oil producers maintain their plans to build up capacity even as
demand growth slows. A resulting spare capacity cushion of at least 3.8 mb/d, concentrated in the
Middle East, should ensure that world oil markets are adequately supplied throughout our forecast
period.
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As always, there are a number of risks to our forecasts that could affect market balances over the
medium term. Uncertain global economic conditions, the direction of OPEC+ decisions and Beijing’s
refining industry policy will play a crucial role in the balancing of crude oil and product markets.
Energy crisis accelerates transition away from oil
Based on existing policy settings, growth in world oil demand is set to slow markedly during the
2022-28 forecast period as the energy transition advances. While a peak in oil demand is on the
horizon, continued increases in petrochemical feedstock and air travel means that overall
consumption continues to grow throughout the forecast. We estimate that global oil demand reaches
105.7 mb/d in 2028, up 5.9 mb/d compared with 2022 levels.
Crucially, however, demand for oil from combustible fossil fuels – which excludes biofuels,
petrochemical feedstocks and other non-energy uses - is on course to peak at 81.6 mb/d in 2028,
the final year of our forecast. Growth is set to reverse
after 2023 for gasoline and after 2026 for transport fuels overall. These trends are the result of a
pivot towards lower-emission sources triggered by the global energy crisis, as well as policy
emphasis on energy efficiency improvements and the rapid growth in electric vehicle (EV) sales.
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The People’s Republic of China (hereafter “China”) was the last major economy to lift its stringent
Covid-19 restrictions at the end of 2022, leading to a post- pandemic oil demand rebound in the first
half of 2023. But demand growth in China slows markedly from 2024 onwards, and global oil
demand growth shrivels from
2.4 mb/d in 2023 to just 400 kb/d by 2028. Nevertheless, burgeoning petrochemical demand and
strong consumption growth in emerging economies will more than offset a contraction in advanced
economies. For total oil demand to decline sooner, in line with the IEA’s Net Zero Emissions by
2050 Scenario (NZE Scenario), additional policy measures and behavioural changes would be
required.
The petrochemical sector will remain the key driver of global oil demand growth, with liquified
petroleum gas (LPG), ethane and naphtha accounting for more than 50% of the rise between 2022
and 2028 and nearly 90% of the increase compared with pre-pandemic levels.
The aviation sector will expand strongly as airline travel returns to normal following the reopening
of borders. At the start of 2023, jet fuel demand was still lagging 2019 levels by more than 1 mb/d,
or 13%. It quickly accelerates and contributes the highest growth across all products over the
forecast period, increasing by a substantial 2 mb/d. However, efficiency improvements and
behavioral changes will slow the pace of growth so consumption will only surpass 2019 levels by
2027.
Non-OPEC+ producers lead oil supply capacity growth
Global upstream oil and gas investment is on track to increase by an estimated 11% in 2023 to USD
528 billion, compared with USD 474 billion in 2022. While the impact of higher spending will be
partly offset by cost inflation, this level of investment, if sustained, would be adequate to meet
forecast demand in the period covered by the report.
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Based on the current pipeline of projects underway and US light tight oil (LTO) growth expectations,
we see 5.9 mb/d of net additional production capacity brought online by 2028. Despite easing from
1.9 mb/d on average over 2022-23 to just 300 kb/d by 2028, new capacity building still moves in
line with projected demand growth over the forecast period.
Oil producing countries outside the OPEC+ alliance (non-OPEC+) dominate medium-term capacity
expansion plans, with a 5.1 mb/d supply boost led by the United States, Brazil and Guyana. Saudi
Arabia, the United Arab Emirates (UAE) and Iraq lead the capacity building within OPEC+, while
African and Asian members struggle with continuing declines, and Russian production falls due to
sanctions. This makes for a net capacity gain of 800 kb/d from the 23 members in OPEC+ overall.
The relatively strong increases from non-OPEC+ producers, together with the projected slowdown
in demand growth, tempers the requirement for OPEC+ crude. As a result, estimated effective spare
capacity of at least 3.8 mb/d is maintained throughout the forecast period.
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Refinery activity and trade upended
A third wave of refinery capacity closures, conversions to biofuel plants and project delays since the
pandemic reduced the overhang in global refinery capacity. This, combined with a sharp drop in
Chinese oil product exports and an upheaval of Russian trade flows, resulted in record profits for
the industry last year.
While net refinery capacity additions of 4.4 mb/d expected by 2028 outpace demand growth for
refined products, contrasting trends among products means that a repeat of the 2022 tightness in
middle distillates cannot be ruled out.
Refiners may need to shift their product yields towards middle distillates and petrochemical
feedstocks to reflect changing demand patterns. Demand for petroleum-based premium road
transport fuels, such as gasoline and diesel, is 1 mb/d below 2019 levels at the end of the forecast
period.
At the same time, robust petrochemical activity and slower growth in natural gas liquids (NGLs)
supply raises demand for refinery-supplied LPG and naphtha. Chinese production policy will be
pivotal for global markets. Close alignment with petrochemical plant feedstock needs could leave
middle distillate markets very tight by 2028.
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While East of Suez continues to propel growth in capacity additions and refinery runs, the Atlantic
Basin could see throughputs decline despite substantial new plants starting up in Nigeria, Mexico
and Brazil.
However, most of the increase in global crude and condensate production will come from the Atlantic
Basin. The Western Hemisphere, and especially the Americas, will be the largest incremental
supplier of oil to global markets, with exports up by 4.1 mb/d by 2028.
This shift in trade flows comes in addition to most of the 2.5 mb/d of Russian crude oil backed out
of Europe and G7 countries due to embargoes flowing eastward. The absence of additional Middle
East exports in 2028 versus 2022 and surging Asian import requirements result in steadily rising
flows from the Atlantic Basin to East of Suez.
The prevailing trend for both crude oil and products is increased supplies from the Americas and
the Middle East to Asia. Refinery additions and dwindling crude production reduces Africa’s crude
export potential by around 15% over the forecast period but curbs its net product import
requirements by 10%.
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NewBase Energy News 17-June 2023 - Issue No. 1630 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.
Copyright © 2022 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 endeavors 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 19
Copyright © 2022 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 endeavors 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 20

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NewBase 17 June-2023 Energy News issue - 1630 by Khaled Al Awadi 2.pdf

  • 1. Copyright © 2022 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 endeavors 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 Energy News 17 June 2023 No. 1630 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE: High-level delegation from GCCIA learns about DEWA’s efforts in renewable energy WAM-Tariq Al Fahaam A high-level delegation from the GCC Interconnection Authority (GCCIA), led by Ahmed Ali Al- Ebrahim, CEO of the GCCIA, visited the Mohammed bin Rashid Al Maktoum Solar Park, which Dubai Electricity and Water Authority (DEWA) is implementing. The visit aimed to gain insights into DEWA’s experience in developing sustainable energy technologies. The delegation was briefed by DEWA’s officials about the latest photovoltaic solar panels and concentrated solar power (CSP) technologies used at the solar park, as well as DEWA’s efforts in innovation and research and development (R&D) in renewable and clean energy. The visit included tours of both the Innovation Centre and the R&D Centre at the solar park. “We are keen to share our successful experience in the renewable and clean energy sector with relevant ministries and organisations regionally and globally, especially the GCCIA, which ww.linkedin.com/in/khaled-al-awadi-80201019/
  • 2. Copyright © 2022 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 endeavors 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 exemplifies economic integration and cooperation, ensuring the security of the GCC’s power grid. This fosters mutual benefits and enhances the region’s energy sector. The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world based on the Independent Power Producer (IPP) model, with a planned production capacity of 5,000 MW by 2030. It contributes to the realisation of the wise leadership’s vision to promote sustainability, innovation and the transition towards a sustainable green economy, in line with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy to provide 100% of Dubai’s total power production capacity from clean energy sources by 2050,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA. DEWA raises awareness about renewable and clean energy and sustainability through the Innovation Centre. It offers visitors a unique experience to explore the latest innovations in clean energy technologies. The first-floor exhibition focuses on DEWA’s journey, vital historical inventions and innovations in electricity, and the latest renewable and sustainable energy developments. The R&D Centre at the solar park aims to bolster the UAE’s research and development sector, provide it with qualified national competencies, and support the scientific community through knowledge dissemination and developing Emirati researchers’ skills and capabilities. With its pioneering projects, valuable partnerships and innovative developments, the Centre supports DEWA’s vision to become a globally leading sustainable innovative corporation committed to achieving Net-Zero by 2050. After the visit, the GCCIA delegation praised DEWA’s commitment to renewable and clean energy and thanked DEWA’s officials for the opportunity to learn about the various phases of the Mohammed bin Rashid Al Maktoum Solar Park as well as the efforts and projects of the R&D Centre and the Innovation Centre.
  • 3. Copyright © 2022 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 endeavors 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 UAE: Veolia acquires big hazardous waste facilities from Adnoc TradeArabia News Service French water management specialist Veolia has announced that its consortium with Abu Dhabi- based investment company ADQ and Saudi-based Vision Invest has reached the financial close for the acquisition of two hazardous industrial waste treatment plants at Al Ruwais Industrial City in Abu Dhabi. The conditional agreement for this transaction was signed by the consortium with Adnoc Refining in November last year, said the statement from Veolia. Adnoc Refining is a joint venture between Abu Dhabi National Oil Company (Adnoc) which has a majority 65% stake, Italian energy group Eni with 20% and Austrian oil company OMV with 15%. It operates the world’s fourth largest single-site refinery in Al Ruwais processing more than 922,000 barrels of crude and condensate each day. As a pioneer and leading provider of hazardous waste management solutions in the Middle East, Veolia will lead the waste management operations in Al Ruwais, leveraging its comprehensive expertise covering the entire hazardous waste treatment chain. Veolia will have 50.1% participation in the operating company alongside Vision Invest (24.95%) and ADQ (24.95%), said the statement. The solutions developed by the French water management expert will specifically focus on maximizing the resource recovery (water and oil) from the oil and gas hazardous waste to reuse them in nearby industrial plants, setting up an innovative circular economy and local energy loops. The consortium will also significantly expand the existing solar farm to produce more locally sourced green energy, it added. With an annual capacity of nearly 70,000 tonnes, Veolia and its partners will treat the hazardous industrial waste of Abu Dhabi’s biggest industrial complex in Al Ruwais, which includes the largest oil refinery in the Middle East. According to Veolia, the acquisition of plants was financed through a combination of equity and long term non-recourse project finance debt with completion contingent interest rate hedges put in place last November. Natixis and Arab Petroleum Investments Corporation (Apicorp) acted as the mandated lead arranger and structuring banks. JP Morgan and Natixis acted as the contingent hedge and hedge providers.-
  • 4. Copyright © 2022 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 endeavors 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 Iraq: Gulf Keystone Petroleum provides operational update Source: Gulf Keystone Petroleum Gulf Keystone Petroleum, a leading independent operator and producer in the Kurdistan Region of Iraq, has provided an operational and corporate update ahead of its AGM. Jon Harris, Gulf Keystone's Chief Executive Officer, said: 'Gulf Keystone entered 2023 following a year of strong operational and financial performance and continued delivery against the Company’s disciplined strategy of investing in profitable production growth, sustainable shareholder returns and maintaining a strong balance sheet. Following the suspension of Kurdistan crude exports on 25 March 2023 and continued delays to oil sales payments, our focus has shifted to aggressively reducing all costs to preserve liquidity, while maintaining safe operational readiness to quickly restart production. We are now exploring potential options to sell our crude to local buyers. While no timeline has been publicly announced, we continue to believe the suspension of exports will be temporary and that the KRG will resume more normalised payments. We are encouraged by the ongoing engagement between the KRG, Iraq and Turkey and note the approval earlier this week of the Iraqi Federal budget, which is a step in the right direction towards formal recognition of Kurdistan production by Iraq and potentially paves the way for monthly budget transfers from Iraq to the Kurdistan Regional Government (“KRG”). We continue to closely monitor the situation.' Operational  Production from the Shaikan Field remains shut-in following the suspension of exports and closure of the Iraq-Turkey Pipeline on 25 March 2023 o The suspension has resulted in a gross production deferment to date of around 4.3 million barrels, or approximately 11,800 bopd on a full-
  • 5. Copyright © 2022 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 endeavors 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 year basis (2023 gross average production guidance prior to suspension: 46,000 - 52,000 bopd)  Almost all operational activity in the Shaikan Field has stopped since the pipeline closure in order to preserve liquidity o Production facilities currently ready to resume production o All drilling and well workover activity halted, with the drilling rig released following the completion and hook-up of SH-18 o All expansion activity suspended, including the installation of water handling o Progressing critical safety upgrades and maintenance activity o No Lost Time Incidents for over 150 days  Currently exploring opportunities to sell Shaikan Field crude to local buyers o Potential opportunities to initially sell a portion of PF-1 production at prices in line with the local market o Logistics in place to quickly restart trucking operations Financial  The Company continues to engage with the KRG regarding outstanding receivables for the months of October 2022 to March 2023 totalling $151 million net on the basis of the KBT pricing mechanism  Net capital expenditures to the end of May 2023 are estimated at $49 million, including completion of SH-17 and SH-18, well workovers, well pad preparation, long lead items and expansion of production facilities  Cash balance of $93 million at 15 June 2023
  • 6. Copyright © 2022 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 endeavors 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 Outlook  The Company continues to believe that the suspension of exports will be temporary and that the KRG will resume more normalised payments o While no official timeline to restart pipeline operations has been announced, the Company understands that discussions between the KRG, the Iraqi Ministry of Oil and the Turkish authorities remain ongoing o The KRG announced that it had reached an agreement with the Iraqi government on measures to allow the resumption of oil exports through Turkey, and also reported that Iraq's State Oil Marketing Organization (“SOMO”) had officially requested Turkish authorities to allow Kurdistan’s oil exports via the country's Ceyhan port o Iraq’s parliament recently approved the 2023-2025 Federal Iraqi budget, a step towards formal recognition of Kurdistan production by Iraq and potentially paving the way for monthly budget transfers from Iraq to Kurdistan o The Company continues to monitor the situation and is currently ready to resume production  The Company remains focussed on preserving liquidity while proactively managing existing accounts payable  Lowering net capital expenditures, operating costs and G&A to a monthly run rate of around $6 million net from July 2023 o 2023 net capex currently estimated at $70-$75 million (previously revised guidance of $80-$85 million)  Estimated $49m net capex Jan-May 2023; estimated $20-$25m of safety critical and contractual commitments remaining for Jun-Dec 2023 o 20% deferral of Executive Director salaries & Non-Executive Director fees and reduced staffing and contractor levels o Final 2022 ordinary annual dividend of $25 million cancelled, as announced on 23 May 2023, with the reinstatement of distributions to be considered once regular KRG payments resume  Continuing to review additional liquidity options, including local crude and inventory sales and further cost reductions
  • 7. Copyright © 2022 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 endeavors 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 Nigeria regains position as Africa’s largest oil producer in May Staff Writer, ZAWYA Nigeria is ranked as Africa’s largest crude oil producer in May 2023, according to the latest data released by the Organization of Petroleum Producing Countries (OPEC). Nigeria reported 1.18 million barrels per day of oil production last month from 999,000 barrels in April. In the ranking, Libya secured the second spot with a slight decrease in crude production to 1.15 million barrels per day in May from 1.21 million barrels in April. Angola followed closely in the third position, with a production of 1.11 million barrels per day, up from 1.06 million barrels in April. OPEC's report highlighted that global crude oil production, citing secondary sources, reached 28.06 million barrels per day in May. Nigeria, Iran, and Angola contributed to the increase in output, while Saudi Arabia, the UAE, and Kuwait witnessed a decline. Consequently, global production declined from the 28.52 million barrels reported in April, the report said. After a decades-long civil war in Angola ended in 2002, Angola’s crude oil production grew rapidly and, in February 2008, briefly surpassed Nigeria’s crude oil production for the first time. Production in Angola has remained, for the most part, nearly the same as production in Nigeria since then. In 2016, disruptions to Nigeria’s crude oil production, stemming from militant attacks on oil export infrastructure, resulted in Angola surpassing Nigeria’s crude oil production for more than a year. In the third quarter of 2022, operators of the Trans Niger pipeline and the Forcados export terminal closed their facilities for repairs. The closures triggered a sharp drop in Nigeria's crude oil output, from 1.1 million barrels per day (b/d) in the second quarter to below 1 million b/d in the third quarter. Nigeria’s production recovered by the beginning of 2023, but an oil workers’ strike disrupted production again in April 2023. Crude oil production in Nigeria fell to slightly more than 1 million b/d
  • 8. Copyright © 2022 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 endeavors 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 in April of this year, dropping below Angola’s production, which was estimated at 1.1 million b/d that month. The Nigerian government has taken steps to make Nigeria more attractive for oil and natural gas investment. On August 16, 2021, the Petroleum Industry Act was passed in Nigeria. The legislation is the culmination of a 20-year effort to overhaul the hydrocarbon industry’s legal framework, attract investor interest in upstream development, and address grievances of communities affected by oil extraction. Changes to Nigeria’s hydrocarbons legal framework include:  Creating two distinct industry regulators: the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority  Restructuring the Nigerian National Petroleum Corporation (the national oil company)  Lowering the tax and royalty structure for crude oil production  Modifying terms and conditions for upstream licensing and leasing Despite the legislative changes, oil theft and sabotage to export infrastructure continue to be major concerns because the damage causes production losses and environmental pollution. Crude oil disruptions often force oil companies to shut down production and limit their ability to export crude oil.
  • 9. Copyright © 2022 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 endeavors 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 Egypt to launch 2 oil & N.Gas exploration tenders by end-2023 Arab Finance Arab Finance: Egypt is planning to offer two tenders for oil and gas exploration in at least 16 blocks south of the country and across the Mediterranean by the end of 2023, two government sources told Asharq Business on June 14th. One of these tenders will be launched for exploration in 8 blocks affiliated with the Egyptian General Petroleum Corporation (EGPC), while the second one will be for oil and gas exploration in at least 8 blocks affiliated with the South Valley Egyptian Petroleum Holding Company (Ganope), one source noted. It will be the first time for Ganope’s blocks to be offered for bidding since 2019, the other source said.
  • 10. Copyright © 2022 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 endeavors 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 NewBase June 17 -2023 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil gains for the week as supply cuts balance demand concerns Reuters + NewBase Oil rose on Friday and posted a weekly gain, as higher Chinese demand and OPEC+ supply cuts lifted prices, despite expected weakness in the global economy and the prospect for further interest rate hikes. Brent crude gained 94 cents to settle at $76.61 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.16 to $71.78. Brent posted a weekly gain of 2.4% and WTI rose 2.3%. Oil has gained this week on hopes of growing Chinese demand. China's refinery throughput rose in May to its second-highest total on record and Kuwait Petroleum Corp's CEO expects Chinese demand to keep climbing during the second half. Also supporting crude are the voluntary output cuts implemented in May by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, plus an additional cut by Saudi Arabia in July. Russian Energy Minister Nikolai Shulginov said it was "realistic" to reach oil prices of around $80 per barrel, Russian state news agencies reported. Oil price special coverage  China's May refinery runs hit second-highest total on record  Russia says 'realistic' for oil prices to reach $80/bbl  Bank of England expected to raise interest rates next week  U.S. oil rigs fall to lowest since April 2022
  • 11. Copyright © 2022 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 endeavors 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 Shulginov also said Russian oil and gas condensate production is expected to fall by around 20 million tonnes (400,000 barrels per day) this year, reiterating Russia's expectations. In Iran, crude exports and oil output have hit new highs in 2023 despite U.S. sanctions, according to consultants, shipping data and a source familiar with the matter, adding to global supply when other producers are limiting output. U.S. oil rigs fell by four to 552 this week, their lowest since April 2022, while gas rigs fell by five to 130, their lowest since March 2022, energy services firm Baker Hughes Co (BKR.O) said. Capping oil price gains was the prospect of rising interest rates, which could slow economic growth. The Bank of England is set to raise interest rates by a quarter of a percentage point next week. The European Central Bank lifted rates to a 22-year high on Thursday and the U.S. Federal Reserve signalled at least a half of a percentage point increase by year-end. Investors have been closely watching interest rates and commentary from Fed members. "We're going to be going from Fed speaker to Fed speaker, and data point to data point," Phil Flynn, an analyst at Price Futures Group, said of oil prices. Money managers cut their net long U.S. crude futures and options positions by 13,191 contracts to 73,273 in the week to June 13, the U.S. Commodity Futures Trading Commission (CFTC) said.
  • 12. Copyright © 2022 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 endeavors 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 Specifical Coverage The Energy world –June-17 -2023 CLEAN ENERGY Growth in global oil demand is set to slow significantly by 2028 IEA Global oil markets are gradually recalibrating after three turbulent years in which they were upended first by the Covid-19 pandemic and then by the Russian Federation’s (hereafter “Russia”) invasion of Ukraine. Benchmark crude oil prices are back below pre-war levels and refined product cracks have now come off all- time highs after rising supplies coincided with a marked slowdown in oil demand growth in advanced economies. Moreover, an unprecedented reshuffling of global trade flows and two consecutive emergency stock releases by IEA member countries in 2022 allowed industry inventories to rebuild, easing market tensions. While the market could significantly tighten in the coming months as OPEC+ production cuts temper the upswing in global oil supplies, the outlook improves over our 2022-28 forecast period. Russia’s invasion of Ukraine sparked a surge in oil prices and brought security of supply concerns to the fore, helping accelerate deployment of clean energy technologies. At the same time, upstream investments in 2023 are expected to reach to their highest levels since 2015. Our projections assume major oil producers maintain their plans to build up capacity even as demand growth slows. A resulting spare capacity cushion of at least 3.8 mb/d, concentrated in the Middle East, should ensure that world oil markets are adequately supplied throughout our forecast period.
  • 13. Copyright © 2022 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 endeavors 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 As always, there are a number of risks to our forecasts that could affect market balances over the medium term. Uncertain global economic conditions, the direction of OPEC+ decisions and Beijing’s refining industry policy will play a crucial role in the balancing of crude oil and product markets. Energy crisis accelerates transition away from oil Based on existing policy settings, growth in world oil demand is set to slow markedly during the 2022-28 forecast period as the energy transition advances. While a peak in oil demand is on the horizon, continued increases in petrochemical feedstock and air travel means that overall consumption continues to grow throughout the forecast. We estimate that global oil demand reaches 105.7 mb/d in 2028, up 5.9 mb/d compared with 2022 levels. Crucially, however, demand for oil from combustible fossil fuels – which excludes biofuels, petrochemical feedstocks and other non-energy uses - is on course to peak at 81.6 mb/d in 2028, the final year of our forecast. Growth is set to reverse after 2023 for gasoline and after 2026 for transport fuels overall. These trends are the result of a pivot towards lower-emission sources triggered by the global energy crisis, as well as policy emphasis on energy efficiency improvements and the rapid growth in electric vehicle (EV) sales.
  • 14. Copyright © 2022 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 endeavors 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 The People’s Republic of China (hereafter “China”) was the last major economy to lift its stringent Covid-19 restrictions at the end of 2022, leading to a post- pandemic oil demand rebound in the first half of 2023. But demand growth in China slows markedly from 2024 onwards, and global oil demand growth shrivels from 2.4 mb/d in 2023 to just 400 kb/d by 2028. Nevertheless, burgeoning petrochemical demand and strong consumption growth in emerging economies will more than offset a contraction in advanced economies. For total oil demand to decline sooner, in line with the IEA’s Net Zero Emissions by 2050 Scenario (NZE Scenario), additional policy measures and behavioural changes would be required. The petrochemical sector will remain the key driver of global oil demand growth, with liquified petroleum gas (LPG), ethane and naphtha accounting for more than 50% of the rise between 2022 and 2028 and nearly 90% of the increase compared with pre-pandemic levels. The aviation sector will expand strongly as airline travel returns to normal following the reopening of borders. At the start of 2023, jet fuel demand was still lagging 2019 levels by more than 1 mb/d, or 13%. It quickly accelerates and contributes the highest growth across all products over the forecast period, increasing by a substantial 2 mb/d. However, efficiency improvements and behavioral changes will slow the pace of growth so consumption will only surpass 2019 levels by 2027. Non-OPEC+ producers lead oil supply capacity growth Global upstream oil and gas investment is on track to increase by an estimated 11% in 2023 to USD 528 billion, compared with USD 474 billion in 2022. While the impact of higher spending will be partly offset by cost inflation, this level of investment, if sustained, would be adequate to meet forecast demand in the period covered by the report.
  • 15. Copyright © 2022 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 endeavors 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 15 Based on the current pipeline of projects underway and US light tight oil (LTO) growth expectations, we see 5.9 mb/d of net additional production capacity brought online by 2028. Despite easing from 1.9 mb/d on average over 2022-23 to just 300 kb/d by 2028, new capacity building still moves in line with projected demand growth over the forecast period. Oil producing countries outside the OPEC+ alliance (non-OPEC+) dominate medium-term capacity expansion plans, with a 5.1 mb/d supply boost led by the United States, Brazil and Guyana. Saudi Arabia, the United Arab Emirates (UAE) and Iraq lead the capacity building within OPEC+, while African and Asian members struggle with continuing declines, and Russian production falls due to sanctions. This makes for a net capacity gain of 800 kb/d from the 23 members in OPEC+ overall. The relatively strong increases from non-OPEC+ producers, together with the projected slowdown in demand growth, tempers the requirement for OPEC+ crude. As a result, estimated effective spare capacity of at least 3.8 mb/d is maintained throughout the forecast period.
  • 16. Copyright © 2022 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 endeavors 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 16 Refinery activity and trade upended A third wave of refinery capacity closures, conversions to biofuel plants and project delays since the pandemic reduced the overhang in global refinery capacity. This, combined with a sharp drop in Chinese oil product exports and an upheaval of Russian trade flows, resulted in record profits for the industry last year. While net refinery capacity additions of 4.4 mb/d expected by 2028 outpace demand growth for refined products, contrasting trends among products means that a repeat of the 2022 tightness in middle distillates cannot be ruled out. Refiners may need to shift their product yields towards middle distillates and petrochemical feedstocks to reflect changing demand patterns. Demand for petroleum-based premium road transport fuels, such as gasoline and diesel, is 1 mb/d below 2019 levels at the end of the forecast period. At the same time, robust petrochemical activity and slower growth in natural gas liquids (NGLs) supply raises demand for refinery-supplied LPG and naphtha. Chinese production policy will be pivotal for global markets. Close alignment with petrochemical plant feedstock needs could leave middle distillate markets very tight by 2028.
  • 17. Copyright © 2022 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 endeavors 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 17 While East of Suez continues to propel growth in capacity additions and refinery runs, the Atlantic Basin could see throughputs decline despite substantial new plants starting up in Nigeria, Mexico and Brazil. However, most of the increase in global crude and condensate production will come from the Atlantic Basin. The Western Hemisphere, and especially the Americas, will be the largest incremental supplier of oil to global markets, with exports up by 4.1 mb/d by 2028. This shift in trade flows comes in addition to most of the 2.5 mb/d of Russian crude oil backed out of Europe and G7 countries due to embargoes flowing eastward. The absence of additional Middle East exports in 2028 versus 2022 and surging Asian import requirements result in steadily rising flows from the Atlantic Basin to East of Suez. The prevailing trend for both crude oil and products is increased supplies from the Americas and the Middle East to Asia. Refinery additions and dwindling crude production reduces Africa’s crude export potential by around 15% over the forecast period but curbs its net product import requirements by 10%.
  • 18. Copyright © 2022 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 endeavors 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 18 NewBase Energy News 17-June 2023 - Issue No. 1630 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as self leading external Energy consultant for the GCC area via many leading Energy Services companies. Khaled is the Founder of the NewBase Energy news articles issues, Khaled is an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management, plant Automation IA and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above.
  • 19. Copyright © 2022 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 endeavors 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 19
  • 20. Copyright © 2022 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 endeavors 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 20