NewBase 594 special 30 April 2015

Copyright © 2015 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 30 April 2015 - Issue No. 594 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Kuwait's KNPC eyes $10bn for key refineries revamp
Reuters + NewBase
Kuwait National Petroleum Company (KNPC), a state run refiner, is in talks with banks to raise a
loan worth around $10 billion to expand and refurbish the Gulf state's main refineries, according to
five sources aware of
the matter.
Part of Kuwait's KD30
billion ($99.6 billion)
economic development
plan, the Clean Fuels
Project will upgrade and
expand two of its largest
existing refineries to
focus on producing
higher-value products
such as diesel and
kerosene for export.
Local and international
banks are talking with
the company, which is
responsible for the oil
refining and gas
liquefaction industry in
addition to the marketing
of petroleum products in Kuwait, said the sources who spoke on condition of anonymity as the
information is not public.
A company source, declining to be named, confirmed the talks were talking place to fund around
70 per cent of the total project cost without elaborating. While discussions are at an early stage,
KNPC is said to be seeking funds which will last between seven and 10 years, according to four
sources.
One of the sources, at an international bank, added that a grace period to allow for construction to
take place would mean repayments begin after four years. The Clean Fuels Project is expected to
be completed by May 2018 and to be fully operational by the end of 2018, Mohammed Ghazi Al
Mutairi, chief executive of KNPC, told Reuters in September.
Banks who have been contacted by KNPC about participating in the project have been asked to
revert by May 10, the sources at the international bank said. NBK Capital, the investment banking
arm of the National Bank of Kuwait, is advising KNPC.

Under the project, the capacity of the Mina al-Ahmadi refinery will drop to 347,000 barrels per day
(bpd) from 466,000, while Mina Abdulla refinery's capacity will rise to 454,000 bpd from 270,000.
The reduction in the capacity of the Ahmadi refinery after shutting one of its crude distillation units
will be compensated for by adding new units to produce higher-value products. Contracts worth
around $12 billion were awarded in February 2014 to international companies including Japan's
JGC Corp , Britain's Petrofac and US-based Fluor Corp for construction work on the project.
In November, KNPC said it would spend $40 billion in the period to 2022 on projects including a
new refinery and a clean fuels project..

Iraq:Technip wins PMC for Basra refinery upgrade contract
Press Release – Technip + NewBase
Technip, in partnership with UNICO, a Japanese engineering consultant, was awarded a Project
Management Consultancy (PMC) contract on a reimbursable basis, for the upgrading of the Basra
refinery. This contract, awarded by South Refineries Company (SRC) – Ministry of Oil, covers the
engineering, procurement, construction, commissioning, start-up and warranty management
phase of the refinery upgrading project(1)
, located in Basra, Iraq.
The project will aim at increasing the gasoline production capacity through the installation of a new
fluid catalytic cracking unit and associated units like visbreaker, hydrotreating, hydrogen plant, etc.
This development is part of the Iraqi Government’s long term plan to meet increasing future
demand for hydrocarbon products.
This award follows the PMC contract attributed to Technip in June 2013 for the Karbala refinery. It
will be executed by Technip’s engineering center in Milton Keynes, United Kingdom, and
supported by Technip PMC teams.
Technip PMC gathers all the know-how and expertise acquired by the Group over the years in
executing challenging projects in the world. This new award continues to reinforce our position in
PMC in the Middle East.
Nicoletta Giadrossi, President of Technip’s Region A(2)
, commented: “We are delighted to help
SRC and the Iraqi’s Ministry of Oil achieve their goals and business objectives, while meeting
safety, cost, schedule and quality targets".
Riccardo Moizo, Senior Vice President for Technip PMC, stated: “We are honoured to have been
awarded this important project by SRC. This new award continues to reinforce Technip’s
positioning on PMC activities. We are looking forward to assisting SRC in the development of this
complex project.”
(1)
The project has been funded by the Japan International Cooperation Agency (JICA).
(2)
Region A is one of Technip’s regions comprising Western Europe, Africa and India.

India eases rules on testing gas finds to unlock $15.8bn reserves
Reuters + NewBase
India yesterday eased rules on testing gas finds, which will help Oil and Natural Gas Corp
(ONGC) and Reliance Industries (RIL) unlock reserves of about 90bn cubic metres worth Rs1tn
($15.8bn), a government statement said.
The 12 discoveries – six each for the two companies – in five
blocks have been waiting for development for years because of a
dispute over testing of their commercial viability.
Yesterday’s announcement will help establish a clear policy for the
future, the statement said, adding: “The policy will also help in
bringing out transparency and uniformity in decision-making as
against a case by case approach in the past.”
Until now it has been mandatory for companies to conduct drill
stem tests (DSTs) within a fixed timeframe to prove that finds are
commercially viable. But the two companies have either delayed
or did not conduct DSTs. The policy approved yesterday gives
firms an option to either relinquish the blocks or still conduct
DSTs.
If a company opts for conducting the DST, it will be allowed to
recover only 50% of the cost of the test, or $15mn, whichever is
lower, as a penalty for the delay, the government’s statement said.
The companies can also develop the finds without conducting a
DST but in that case these discoveries will be treated as a
separate entity for accounting purposes and cost recovery will be
allowed after commercial production.
The contractors have to opt for one of the options within 60 days
of approval to prevent relinquishment of the area with discoveries,
the statement added.

Angola Seeks Investors for $23 Billion of Water &Power Projects
Bloomberg + NewBase
Angola plans to involve private industry in plans to spend $23.3 billion on water and electricity
projects over the next two years as Africa’s second-largest crude producer deals with plunging oil
prices.
The southwest African country is targeting the development of 65 energy and water projects by
2017, Maria Luisa Abrantes, chief executive officer of the state-run National Private Investment
Agency, told an urban infrastructure conference in the capital, Luanda, on Wednesday. It will be
more than the average $4.7 billion a year that Angola spent from 2003 to 2014 constructing
infrastructure that includes six dams, 11 airports and many roads and bridges, she said.
“Our financial resources are scarce in a way that we need more private investors to come and
invest in these areas,” Abrantes told delegates. “We have to be more innovative in obtaining other
sources of financing.”
Angola is
attempting to raise
about $10 billion in
foreign and
domestic debt to
finance
infrastructure
expansion plans
as it contends with
oil prices that have
declined by about
40 percent since June. Sub-Saharan Africa’s third-largest economy depends almost entirely on oil
exports as it continues to rebuild from a 27-year civil war that ended in 2002.
The parliament in
February cut the
2015 budget by a
quarter, while
increasing the
forecast for the
fiscal deficit to
about 7 percent of
gross domestic
product. President
Jose Eduardo dos
Santos has said
that while some infrastructure projects will be delayed, a new international airport in Luanda due to
be completed next year and hydro-electric dams along the Namibian border are going ahead.
“A lot has been done already but we need to build more roads, cities, energy and water networks,”
Abrantes said. “We have to improve our standards of living by reducing the poverty rate.” About
two-thirds of Angola’s population of 24 million lives on less than $2 a day, according to the World
Bank.

Angola: Eni starts production of Cinguvu offshore field at West Hub
Development offshore Angola. Source: Eni
Eni started production two weeks ahead of schedule at the Cinguvu oil field, from the West Hub
Development Project in Block 15/06 in the Angolan Deep Offshore, approx. 350 kms northwest of
Luanda and 130 kms west of Soyo. The start-up follows the achievement of West Hub’s first oil
through Sangos field start-up, during last November 2014.
The West Hub Development
Project encompasses the
development of Sangos,
Cinguvu, Mpungi, Mpungi
North and Vandumbu
fields in a water depth
ranging from 1,000 to
1,500 meters. The wells
are arranged in clusters
and connected to the
FPSO (Floating Production
Storage and Offloading
Unit) N’Goma, which has
a treatment capacity of
100,000 barrels of oil per
day.
The two fields on stream,
Sangos and Cinguvu, are currently producing about 60,000 barrels of oil per day (18,000 bopd
Eni’s equity) through the N’Goma FPSO. Production is envisaged to ramp up to 100,000 barrels
of oil per day in the last quarter of 2015 with the start-up of the third field, Mpungi, which will also
be connected to N’Goma FPSO.
The development project started with a very successful exploration campaign. Eni discovered
over 3 billion barrels of oil in place in the Block 15/06 . The discoveries were then developed
quickly and efficiently, achieving an industry-leading time to market of only 44 months from the
Declaration of Commercial Discovery thanks to the application of a new modular development
model.
'This is indeed another important step within the innovative hub-building strategy at the base of
our success in Block 15-06 in Angola. A second field, Cinguvu, came on stream on time and on
budget, after Sangos in November 2014, confirming our excellent track record in terms of
efficiency, technology and innovation', CEO Claudio Descalzi commented.
Eni is also continuing its exploration programme in Block 15/06: new discoveries are expected to
be tied to the existing production infrastructures quickly and cost efficiently.
Eni is operator of Block 15/06 with a 35% stake and Sonangol EP is the Concessionaire. The
other partners of the joint venture are Sonangol Pesquisa e Produção (35%), SSI Fifteen
Limited (25%) and Falcon Oil Holding Angola (5%).

UK: BP starts seven year West of Shetland drilling programme
with new Deepsea Aberdeen rig
BP, on behalf of the Schiehallion co-venturers Shell and OMV, has announced the start of
drilling on the Loyal field by the new-build, semi-submersible Deepsea Aberdeen, marking the
start of a seven year drilling campaign West of Shetland. Deepsea Aberdeen is contracted to
drill wells across the Schiehallion and Loyal fields, as part of the Quad 204 development.
The sixth-generation, dual derrick rig is the newest addition in Odfjell Drilling’s fleet of mobile
offshore drilling units. It has been designed to the highest international safety standards to
operate in harsh environments, carrying out ultra-deepwater drilling in depths up to 3,000m. The
Deepsea Aberdeen will initially drill two producer wells and one injector well on Loyal, before
moving onto Schiehallion to continue drilling activities. Five wells are planned to be drilled prior to
first oil from the new Glen Lyon floating, production, storage and offload (FPSO) vessel at
the end of 2016.
Trevor Garlick, Regional President for BP’s North Sea business said:
'This marks an exciting and important milestone for both the Quad 204 project and our wider
North Sea business. The drilling campaign not only demonstrates our commitment to the Region
in what is a challenging time, but will also help maximise production from Schiehallion and Loyal,
contributing to the long term competitiveness of BP’s North Sea business.'
The Deepsea Aberdeen will be operated from Odfjell Drilling’s office in Aberdeen. Odfjell
Drilling CEO, Simen Lieungh said:

'The start of drilling operations on Deepsea Aberdeen marks another step in the development of
Odfjell Drilling’s activities in the UK and harsh environment offshore regions. The rig design is
based on our more than 40 years’ experience of drilling in the North Sea. Our offshore crew and
our onshore organisation in Scotland are looking forward to working collaboratively with BP over
the next seven years on the Quad 204 development.'
BP (operator) and Shell each have a 50 per cent ownership interest in the Loyal field.
The Schiehallion field ownership interest is split between BP (operator) with 33.35
percent; OMV (11.76 per cent); Shell (54.89 per cent).
1. In July 2011 BP and partners announced their intention to invest around £3billion to re-develop
the Schiehallion and Loyal fields as part of its Quad 204 project.
2. Schiehallion and Loyal have produced nearly 400 million barrels of oil since production started in
1998. The Quad204 development aims to access the remaining estimated 450 million barrels of
resource still available and help extend production from the fields out to 2035 and beyond.
3. The development involves the installation of a new floating, production, storage and offloading
vessel – the Glen Lyon – which is due to arrive in the North Sea in 2016, together with a major
upgrade and replacement of the subsea facilities.
4. The new Glen Lyon FPSO replaces the Schiehallion FPSO, which started production in 1998.
Production was suspended in 2013 to make way for Quad204 subsea works.
5. Glen Lyon, which measures 270 metres long by 52 metres wide, will be able to process and export
up to 130,000 barrels of oil a day and store up to 1 million barrels.
6. Installation of the new subsea pipelines and facilities commenced in 2015, and this year all of the
new pipelines and a number of new structures will be installed, along with pre-installation of the
new flexible risers.
7. In January 2012, Odfjell Drilling was awarded a pre-contract award for the provision of the
newbuild, semi-submersible drilling unit for use in the re-development of the Schiehallion and
Loyal fields, as part of the Quad 204 project.
8. The Deepsea Aberdeen was fabricated by Daewoo Shipbuilding and Marine Engineering in South
Korea.

Netherlands: Dutch parliament reverses burden of proof in gas
damage claims at Groningen. Source: Reuters
The Dutch parliament on Tuesday voted to reverse the burden of proof in disputes over damages
to buildings caused by the production of gas atGroningen, Europe's largest natural gas field, a
potentially expensive decision. Estimates of damage to buildings in Groningen by earthquakes
caused by gas production range
from 6.5 billion euros ($7.1 billion)
to 30 billion in the coming 30
years. Under the motion approved
by parliament, the company that
operates the Groningen field, a
joint venture including Shell,
Exxon and the Dutch
government, would have to
provide evidence that disputed
damage claims are bogus, rather
than claimants having to show
evidence they are legitimate. It
was not immediately clear how
many claims the vote will affect.
Producers have promised to pay
all legitimate claims and Economic
Affairs Minister Henk Kamp, who
argued against Tuesday's
decision, said 92 percent of claims
submitted since the start of 2015
had been approved.
Gas production at Groningen has
become increasingly controversial since the Dutch Safety Board found in February that the
government failed to adequately consider the threat to citizens from the small earthquakes it
causes.
The plan to reverse the burden of proof was proposed by the Labour party, junior member in the
governing coalition led by Kamp's Liberal Party. The Liberals opposed the motion but support
from other parties ensured its passage. The Dutch government bears 64 percent of claim costs,
while a Shell-Exxon venture called NAM funds the remainder, the same ratios they use to divide
profits from production at Groningen.
Gas proceeds made up between 5 and 10 percent of the Dutch government budget in 2003-
2014, about two-thirds from Groningen. In 2014 state proceeds from the field were around 9.4
billion euros.
An estimate commissioned by the province of Groningen published last week estimated as many
as 212,500 buildings may have been damaged by the quakes, with costs of compensation and
strengthening buildings running as high as 30 billion euros over the coming three decades. An
earlier government review estimated the number of houses needing repair would be no more
than 90,000, with damage costing roughly 6.5 billion euros.

US: Projections show becoming a net exporter of natural gas
Source: U.S. Energy Information Administration,
In its recently released Annual Energy Outlook 2015 (AEO2015), EIA expects the United States to
be a net natural gas exporter by 2017. After 2017, natural gas trade is driven largely by the
availability of natural gas resources and by world energy prices. Increased availability of domestic
gas or higher world energy prices each increase the gap between the cost of U.S. natural gas and
world prices that encourages exports of liquefied natural gas (LNG), and, to a lesser extent,
greater exports by pipeline to Mexico.
The AEO2015 examines alternate cases with higher and lower world oil price assumptions, which
serve as a proxy for broader world energy prices given oil-indexed contracts, as well as with
higher assumed U.S. oil and natural gas resources. These assumptions significantly affect
projected growth in annual net LNG exports after 2017.
Net LNG exports make up most of the natural gas exports in most cases. By 2040, LNG exports
range from 0.2 trillion cubic feet (Tcf) in the Low Oil Price case to 10.3 Tcf in the High Oil and Gas
Resource case. For comparison, 2040 natural gas net exports by pipeline range from 1.1 Tcf in
the High Oil Price case to 2.9 Tcf in the High Oil and Gas Resource case.
Most of the growth in U.S. net natural gas exports occurs before 2030, as increased domestic
natural gas supply satisfies new demand both internationally (with the development of LNG export
capacity and growing demand for pipeline exports) and domestically (particularly in the industrial
and electric power sectors). Increased shale gas production accounts for three-quarters of the
increase in total dry gas production. More than half of the increase in shale gas production comes
from the Haynesville and Marcellus formations.
Natural gas net exports are highest in the High Oil and Gas Resource case, which assumes both
higher resources and improvements in technology to bring those resources to market. In this case,

both net LNG and net pipeline exports in 2040 are higher than in any other AEO2015 case,
because higher production capability lowers the cost of U.S. natural gas compared with prices in
the world market.
In the High Oil Price and Low Oil Price cases, projected LNG exports vary in response to the price
of oil-linked international LNG contracts. Contract prices are higher in the High Oil Price case,
making U.S. LNG exports more competitive, while the opposite occurs in the Low Oil Price case.
However, the relationship between international LNG prices and world oil prices is assumed to
weaken later in the projection period, with the most decoupling of oil and natural gas prices
occurring in the High Oil Price case.
U.S. pipeline exports of natural gas—most flowing south to Mexico—increase in all of the
AEO2015 cases because increases in Mexico's production are not expected to keep pace with its
growing natural gas demand. On the import side, pipeline imports from Canada, which accounted
for 97% of total U.S. gross total imports of natural gas in 2013, continue as the source of nearly all
U.S. gross natural gas imports through 2040, except in the Low Oil Price case, where gross
imports of relatively less expensive international LNG contributes 22% of total imports in 2040.

Oil Price Drop Special Coverage
Brent crude prices slip away from 5-month highs as Japan's industry stutters
Reuters + NewBase
Oil prices slipped away from five-month highs in early Asian trading on Thursday as Japanese
factory output weakened for the second straight month. Japanese industrial output fell 0.3 percent
in March adding to mounting evidence of an export-driven economy struggling to regain
momentum amid slowing global growth.
Brent crude futures dropped 26 cents from their last settlement to $65.58 a barrel by 0307 GMT.
U.S. WTI crude was virtually flat at $58.67 a barrel.
The drops followed a session in which prices hit five-month highs after the first crude stock draw in
almost half a year at the U.S. Cushing hub.
"Brent and WTI prices closed at the highest level in nearly five months as U.S. crude oil
inventories rose by just 1.9 million barrels (compared to more than 5.5 million barrels the previous
week)," ANZ bank said on Thursday.
"WTI prices outperformed Brent as crude oil stocks at key US storage hub Cushing fell for the first
time in five months," it added.
Despite prices hovering close to half-year highs, analysts warned against investment into certain
oil sectors, even if prices continued to rise.
"We advise investors to avoid companies that have large business exposure to jackup rigs,"
Nomura said on Thursday.
"We believe the global jackup rig oversupply is only mid-way through the downcycle... There are
93 uncontracted jackup rig deliveries in 2Q15-4Q16F, which are equal to 17 percent of the global
fleet at end-14. We expect this to exert further downward pressure on the current jackup rigs," it
added.

Total Sees Deal Targets Still Too Expensive After Crude Crash
Bloomberg + NewBase
Total SA Chief Financial Officer Patrick de La Chevardiere said prospective takeover targets are
still too expensive after crude prices collapsed.
“All potential targets brought to us by bankers
haven’t yet adjusted in terms of prices,” he said in an
interview with Bloomberg TV on Tuesday. “They are
still expensive companies. Their share prices haven’t
adjusted to the new oil price environment.”
The executive didn’t name any companies Total may
be considering to buy.
Royal Dutch Shell Plc’s $70 billion move for BG
Group Plc to form the world’s biggest producer of
liquefied natural gas, or LNG, could trigger a wave of
consolidation deals, analysts including Jean-Luc Romain of CM-CIC Securities have said. Gerard
Mestrallet, Chief Executive Officer of the French utility that changed its name to Engie from GDF
Suez, expressed a similar view on Monday.
Commenting on the the biggest deal in Shell’s history, Total’s de La Chevardiere said that “the
price was quite high.” That echoes comments earlier this month from Total CEO Patrick
Pouyanne, who said the French company can afford some acquisitions.
“It’s a bit early for me,” Pouyanne said then. “The opportunities will really come if oil prices remain
low over a longer period. Then you will see real opportunities for major companies like Total.”
Oil has rebounded from a six-year low in March on speculation a drilling slowdown will reduce
U.S. production and Saudi Arabia’s military campaign in Yemen will disrupt Middle East supplies.
Iran and world powers are in talks to reach a final nuclear deal by the end of June that may result
in sanctions being lifted against the Persian nation’s oil exports.
Brent Collapse
The global Brent benchmark collapsed last year as OPEC maintained its output target at 30
million barrels a day, saying non-member producers created an oversupply and must help tackle
it. It’s up 13 percent this year, at about $65 a barrel, while still more than 40 percent lower than its
June high.
“There is a big question about what Saudi Arabia will do when Iran is back on the market,” de La
Chevardiere said about future crude supply and prices. Slower drilling in the U.S. may have
lowered or stabilized output there, though “it all depends on Iran coming back or the Saudis
making a decision.”
The company plans to move into Iran when sanctions are removed, La Chevardiere said.
“We had a project prior to the sanctions, and we are ready to move in as soon as the sanctions
are lifted,” he said. U.S. drillers cut the number of active rigs in the country to 703 last week, the
lowest level since October 2010. Crude inventories gained despite the decline.
Patrick de la Chevardiere, Chief Financial
Officer of Total SA.

Russia: Gazprom net income plunges 86% oil price drop, rouble
Reuters + NewBase
Russian natural gas and oil producer Gazprom suffered an 86 percent fall in net income in 2014
because of the rouble's weakness, the fall in global oil prices and a dispute with Ukraine.
The state-run company, which generates about 8 percent of Russia's gross domestic product, said
on Wednesday higher impairment charges had also contributed to the drop in net income to 159
billion roubles ($3.1 billion).
Russian oil and gas producers have suffered from weaker oil prices in recent months and the
rouble's fall against the dollar has inflated their dollar-denominated debts. Gazprom, the world's
largest gas producer, has also reduced sales of gas to Ukraine, which had been one of its most
important markets, because of a long-running dispute over debt and pricing.
Shares in Gazprom rose 1 percent early on
Wednesday, slightly outperforming the
broader MICEX index. "They've generated
good cash flow for the second year in a row,
it was $5.9 billion only in the fourth quarter,"
Alex Fak from Sberbank CIB in Moscow said.
According to his estimates, Gazprom
sustained a loss of $8.3 billion in the fourth
quarter, more than most analysts expected.
The company said it sustained foreign
exchange losses of 1.1 trillion roubles ($21.2
billion) last year, while charges for
impairment and other provisions rose by
245.5 billion roubles, including for provisions
related to its spat with Ukraine.
Despite the pressure from the weaker rouble, the company increased investment by $4 billion
from initial plans for 2015. Total sales increased to 5.59 trillion roubles from 5.25 trillion roubles in
2013, Gazprom said in a statement.
SALES TO EUROPE
Gazprom generates more than half of its revenues from gas sales in Europe. It faces possibly
large fines over accusations by the European Commission that it is overcharging buyers in
eastern Europe and hindering competition.
Gazprom has also had to deal with the falling price of long-term contracts, the backbone of
agreements with European companies. Gazprom pegs its gas prices in long-term contracts to the
prices of oil, which almost halved from their June's peaks, with a lag of six to nine months.
The company said on Wednesday that gas sales to Europe and other countries declined by 8.5
percent to 159.4 billion cubic metres, while the average price it charged rose 11 percent to 13,478
roubles per 1,000 cubic metres.
The Russian Economy Ministry expects the average Russian gas price for Europe to fall by more
than one third to $222 per 1,000 cubic metres in 2015. ($1 = 51.8200 roubles)

Gulf economies’ growth outlook dampened as oil stays low
Reuters + NewBase
The outlook for most of the Gulf economies has dimmed for this year and next as oil prices have
remained relatively low, according to a Reuters poll published on Wednesday that showed
economists cutting their forecasts.
Heavy state spending and strong private consumption are cushioning the impact of a plunge in oil
export revenues. Nevertheless, some construction and economic development projects are being
suspended, cooling economic growth.
Saudi Arabia’s gross domestic product is now projected to expand 2.6 percent in 2015, according
to the median forecast in the poll of 18 analysts, instead of the 3.2 percent foreseen by the
previous poll in January. Last year, GDP grew 3.6 percent.
In 2016, Saudi GDP is expected to grow 3.0 percent instead of the previous forecast of 3.2
percent. A rebound in the past few weeks has taken Brent crude oil LCOc1 to four-month highs
around $65 per barrel – still far below last June’s level of $115, but significantly above late March
prices of about $55. This improvement may not yet be fully reflected in economic forecasts.
But Monica Malik, chief economist at Abu Dhabi Commercial Bank, said growth forecasts for the
region might still be lowered again later this year as cheap oil slowed more development projects.
“If there is no greater recovery of the oil price, there may be more downside risk in the medium
term,” she said. This year’s growth forecast for the United Arab Emirates, which is less reliant on
oil because of Dubai’s diverse economy, has been cut to 3.4 percent from 3.8 percent, and next
year’s to 3.7 percent from 3.9 percent.
Qatar is expected to be by far the best-performing of the six Gulf Cooperation Council economies,
as the world’s top natural gas exporter steps up a vast infrastructure building program. Qatari
GDP is projected to grow 6.7 percent this year and 6.4 percent next year.
Although the Gulf economies are managing to continue growing in an era of cheap oil, it is at a
heavy cost to their state finances. The UAE is forecast to run a deficit of 4.1 percent this year and
Kuwait of 5.0 percent. Only Qatar is seen staying in the black, with a surplus of 1.8 percent.
Saudi Arabia’s reserves are so huge that it could continue to do this for years. The UAE and
Kuwait are in similarly fortunate positions.
But the financial reserves of Oman, projected to run a fiscal deficit of 11.7 percent of GDP this
year, and Bahrain, with a forecast deficit of 12.0 percent, are much smaller. They may be forced
into painful spending cuts in coming years if oil prices stay below $70 a barrel.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering & regulating stations
and in the engineering of supply routes. Many years were spent drafting, & compiling gas
transportation, operation & maintenance agreements along with many MOUs for the local
authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE
and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 30 April 2015 K. Al Awadi

NewBase 594 special 30 April 2015

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (11)

Similar to NewBase 594 special 30 April 2015

Similar to NewBase 594 special 30 April 2015 (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

NewBase 594 special 30 April 2015