New base special 01 may 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,

redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained

in this publication. However, no warranty is given to the accuracy of its content .

NewBase 01 May 2014 Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

Qatari fund buys UK's Heritage Oil for $1.6bn By Reuters

British oil company Heritage Oil agreed a £924 million ($1.6 billion) takeover offer from a fund

owned by the former chief executive of Qatar's sovereign wealth fund.

Heritage, whose main oil production is in Nigeria, said on Wednesday it was recommending a 320 pence per share cash offer, which represented a 25 percent premium to its closing price the day before the approach was announced. Its suitor, Al Mirqab Capital, is the private investment vehicle of Qatar's Sheikh Hamad Bin Jassim Bin Jabor Al Thani and his family.

Sheikh Hamad, who was chief executive of the Qatar Investment Authority until last year, is regarded as the driving force behind the emergence of the Gulf Arab state's sovereign wealth fund as one of the world's most sought-after investors, scooping up stakes in bluechip companies, luxury brands and prime real estate.

Heritage's largest shareholder, former mercenary Anthony Buckingham who owns 34 percent of the FTSE 250 company, has entered into an agreement with Al Mirqab to retain a 20 percent stake of Heritage for five years under its new ownership.

Over the last month, the oil sector has seen signs that deal activity is picking up. Mining company Glencore Xstrata said it agreed to buy Chad-focused oil firm Caracal Energy for about 800 million pounds.

Two FTSE 250 oil companies were also recently involved in a potential merger when Ophir Energy had two bid approaches rejected by Premier Oil.

Shares in Heritage, which before opening on Wednesday had risen about 50 percent over the previous 12 months, were up 22 percent to 312.4 pence at 0756 GMT.

Analysts said the deal was positive for the exploration and production sector.

Afren, whose main operations are also in Nigeria, traded up 3.5 percent, while Ophir was 4 percent higher.




"It's a welcome shot in the arm in terms of valuations. There is a theme. Companies which are oil and are relatively simpler operations, that is, they're onshore rather than offshore, they are appealing to people," RoyalBank of Canada analyst Al Stanton said.

Companies with onshore oil operations, look relatively cheap and have a major shareholder include Kurdistan-focused DNO and Albania-focused Bankers Petroleum, Stanton added.

Al Mirqab is interested in accessing Heritage's growing oil output in Nigeria and its exploration portfolio which includes areas in Tanzania and Papua New Guinea.

Jersey-based Heritage bought into a Nigerian oilfield which had been owned by oil major Shell in a $850 million deal in 2012 while it sold out of a gas field it had discovered in Kurdistan. It had previously sold oil fields it had found in Uganda.

Heritage was founded by Buckingham, a former North Sea diver who went on to provide mercenary fighters in Africa when he was a partner in the military contracting firm Executive Outcomes.

Still subject to shareholder approval, Heritage's takeover has been recommended by a board which excludes Buckingham, the company's chief executive, as he has been deemed to be acting in concert with the Qatari fund due to his plan to remain invested.

About Heritage History :

The company was formed in 1992 to exploit oil reserves in Africa, the Middle East and Russia. It was first listed on the London Stock Exchange in 2008 and moved its head office from Calgary to Jersey also in 2008

In April 2009 the company disposed of its interests in Oman in order to focus on its core assets.

In May 2009 the company discovered a major oil field following test results at the Miran gas field in Kurdistan. In November 2012, they decided to sell their remaining 49% interest to Genel Energy to repay a $294m (£185m) loan..

In 2012/2013 Heritage made a strategic investment (app. 20%) in PetroFrontier Corp.and exploration of Australia's highly prospective Northern Territory situated Georgina Basin.




Drydocks World completes ‘Al Ittihad’ rig repairs Press Release, Drydocks World .

Drydocks World the leading international service provider to the marine and maritime sectors

including to the oil & gas and energy industry, today announced the completion of major

repair and refurbishment of National Drilling Company’s (NDC) jack-up drilling rig Al Ittihad.

The company has successfully carried out maintenance work on several of NDC’s rigs and the numbers have increased over the years. Drydocks World received four orders in 2013 to add to the eight projects completed previously.

The company offers a complete range of services in repair, maintenance, conversion and construction of drilling rigs and Offshore Platform Vessels. According to Khamis Juma

Buamim, “This is yet another

achievement as we continue to pursue

our strategy and action plans towards becoming the yard of choice for the offshore industry in this

region and around the world. The yard has drawn on its internal engineering resources and other

specialized capabilities to deliver the milestones on this project. We are grateful to NDC for their

continued faith in our services and we assure them that we will continue to maintain the high

standards of service delivery.”

Abdalla Saeed Al Suwaidi, CEO of NDC underlined the importance of the modernization projects of the existing rigs in raising the level of reliability and productivity of the company rig fleet. These major repair and refurbishment projects, along with the undergoing expansion plans to acquire a growing number of state-of-the-art offshore and onshore rigs are contributing significantly in advancing NDC’s operational excellence and maintaining the highest levels of safety, environment protection and efficient performance. This will certainly enable NDC to serve its clients competently and always meet their operational requirements and achieve their satisfaction, he said.NDC’s CEO expressed his appreciation for Drydocks World for their efforts and commitment to HSE and Quality.

The repair and refurbishment package on the 61.87 x 51.21 metre rig included preload, void, bilge and diesel tank steel repair with nearly 125 tonnes of steel used to renew the inside of the tanks. A securing system for the rig floor was designed, fabricated and installed. In addition, inspection was carried out underwater. The sea cooling line for main air compressors and pipes for barite tanks were replaced, the flaring line was re-routed, a 50 metre cement line was renewed and mud valves of the stand pipe manifold were changed. The Yard has also utilised its specialised engineering and




other resources to carry out various repair works on the accommodation of the rig including renewal of floor tiling, ceiling panels, door frames etc.

The shipyard’s Global Offshore Services has also shared its resources and experience in overhauling the cantilever skidding units. The preload tanks were blasted and these and the hull were painted. The Rig’s three cranes were overhauled and extensive machining was carried out.

Blasting and painting, replacement of electrical cables, replacement of structural angle bars and beams were other work that was completed on the derrick. Hydro-blasting and painting of legs, overhauling of AC works in accommodation and two generator alternators for engine formed part of the job scope.




Omani Refiner Orpic inks $2.8b loan deal with consortium Times of Oman

Oman Oil Refineries and Petroleum Industries Company (Orpic) signed a $2.8 billion loan agreement with a consortium of 21 international and national financial institutions yesterday for its projects including the Sohar Refinery Improvement Project (SRIP), which will be 65 per cent debt financed.

The loan agreements were signed on behalf of Orpic by Dr Mohammed bin Hamad Al Rumhy, minister of oil and gas and chairman of Orpic, and Musab Abdullah Al Mahruqi, chief executive officer of Orpic. The agreements were also signed on behalf of Orpic shareholder by Nasser bin Khamis Al Jashmi, undersecretary of the Ministry of Finance and Mulham bin Basheer Al Jarf, deputy chief executive officer of Oman Oil Company. "This is a significant moment for both Orpic and the nation on two counts. It demonstrates the considerable appetite there is for international investment in Oman's oil and gas sector, and at the same time a step further in maximising the added value of the Omani crude," Rumhy said. "It is a reflection of the robustness of our business, the viability of our vision, and the commitment we have demonstrated that such a grouping of significant banks and financial institutions has come together to provide the financing required for a multibillion dollar project. We have proved that we are a business worthy of significant investment as we continue to transform Orpic in the coming five years," Orpic's CEO said. Two major projects At present, Orpic is developing two additional major projects, which are at design stage, namely the Liwa Plastics Project (LPP) and the Muscat-Sohar Product Pipeline (MSPP). LPP is a steam cracker project to improve added value by processing light ends produced in Orpic's Sohar refinery and aromatics plant as well as optimise NGLs extracted from the natural gas. The project is on schedule for completion in 2018.

The MSPP involves a 280km pipeline between Muscat and Sohar for transporting refined products and will include a large storage and distribution terminal in Jifnain, north of Muscat. It will also connect directly to Muscat International Airport for delivery of jet fuel.




Eni strategy in good progress with Mozambique Area-4 FLNG projects

The Italian national oil company (NOC) Eni is currently proceeding to the pre-qualification of the engineering companies and shipyards to be invited to bid (ITB) for the front end engineering and design (FEED) of the first floating liquefied natural gas (FLNG) vessel to be moored in the Area-4 in the Strait of Mozambique on the East Coast of Africa.

Together with the Texas-based Anadarko Petroleum Corporation (Anadarko), Eni is leading the development of the huge reserves of gas discovered these last five years in the Rovuma Basin offshore Mozambique and Tanzania.

Anadarko is leading the exploration and production of the Rovuma Basin Area-1 while Eni is prospecting the Area-4.

In the Area-1 Anadarko is the operator with 26.5% of the joint venture shared with Mitsui E&P (20%), BPRL Ventures Mozambique (10%), Videocon (10%), PTTEP (8.5%), ONGC Videsh (OVL) (10%) and the local Empresa Nacional de Hidrocarbonetos (ENH) holding the remaining (15%).

In the Area-4, the working interests are more concentrated since Eni holds 50% shares of the joint venture with China National Petroleum Corporation (PetroChina or CNPC) (20%), Galp Energia (10%), Kogas (10%) and ENH (10%).

So far, Anadarko and Eni have identified more than 100 trillion cubic feet (tcf) and 70tcf in the Area-1 and Area-4 respectively.

With such reserves the Mozambique Government required Anadarko and Eni to unitize the development of the onshore part of their respective projects.

As a consequence, Anadarko and Eni have organized a competitive FEED to build series of 10 liquefied natural gas (LNG) trains at the Afungi LNG industrial Park to be developed in the Cabo Delgado Province in the north of Mozambique.

In addition to this first Afungi onshore LNG project, Eni is prospecting other locations upper north of Mozambique, close to the boarder with Tanzania, to install its own onshore facilities.




So far Quionga, seems to be Eni preferred choice for future Mozambique onshore LNG plants.

Eni plans competitive FEED on first Mozambique FLNG

Anyway since the Australian experience, all the companies have experienced that building large onshore LNG facilities carries on number of uncertainties related to the local acceptance and the costs of such greenfield giant projects.

In this context, the risks associated to the innovative concept of FLNG look much more manageable for on-time deliveries.

Therefore in parallel to the onshore projects, Eni has defined its strategy to deploy of fleet of three FLNG in the Area-4 that could run into production regardless the actual planning of the onshore projects.

In order to design and build the first FLNG on fast track, Eni is planning to organize a competitive FEED based on the pre-FEED completed by the tandem Saipem – Hyundai Heavy Industries (HHI).

During the pre-qualification process, Eni invited interested engineering companies to team up with shipyards in order to present a complete offer combining both expertises.

From the four or five qualified tandems of engineering companies and shipyards, Eni should select only two to perform the

FEED of the first FLNG.

Then the tandem returning best FEED conclusions and submitting the best technical and commercial offer for the engineering, procurement and construction (EPC) contract will be sanctioned the execution of the construction in following its FEED.

With this strategy, Eni and its partners , PetroChina, Galp Energia, Kogas and ENH, are expecting to offload the first shipment from the first Rovuma Basin Area-1 Mozambique FLNG by 2019.

Mozambique holds 4.5 trillion cubic feet (Tcf) of proven natural gas reserves,

but does not have any crude oil reserves as of January 1, 2013, according to

the Oil and Gas Journal. The country has large onshore and offshore

sedimentary basins that contain natural gas resources, but much of it is

unexploited. Additionally, the country holds large untapped coal resources.




Egypt extends bidding deadline for 22 oil and gas concessions Source: Reuters

Egypt has extended the bidding deadline to July 3 in an international auction of 22 concessions for oil and

gas exploration, an official with the state-owned gas company said on Wednesday. The previous deadline for companies to submit bids for concessions in the Suez Canal, Egypt's western desert, the Mediterranean Sea and the Nile Delta had been May 19.

Egypt's General Petroleum Corporation (EGPC) and state-owned Natural Gas Holding Company

(EGAS) did not give a reason for the delay, but an EGAS source said the deadline was pushed back at the request of companies who wanted more time for feasibility studies. 'A group of companies submitted a




request to EGAS and EGPC two weeks ago to postpone the closing date of the bidding so they can assess the feasibility studies for the concession areas and offer the best deals,' the source said.

Oil companies have been hesitant to develop untapped gas finds in Egyptian waters, partly because the amount the government pays them barely covers their investment costs. Egypt currently pays offshore gas producers on average around $2-$3 per million British thermal units, according to industry estimates. Comparable payments for gas in Britain are currently above $10 and for Asian supply above $17.

The government has been struggling with soaring energy bills caused by the high subsidies it provides on fuel for the population of 85 million. The subsidies have turned the country from a net energy exporter into a net importer over the last few years. Egypt has started repaying some of its debt to foreign oil companies, but its arrears still rose to $5.7 billion by the end of March, up $800 million from the government's last reported figure in December.




All seas to lay second line of South Stream Offshore Pipeline Press Release, South Stream Transport .

South Stream Transport has signed a contract with the Allseas Group to lay the second line of

the South Stream Offshore Pipeline.

From left to right: Umberto Vergine (CEO of Saipem), Dr. Oleg Aksyutin (CEO of South Stream Transport), Frits Janmaat (VP Finance, Legal and Commercial of Allseas) and Cees Kooger (General Counsel Legal, Director of Allseas)

In addition, the Company has signed a contract with Saipem for the provision of complementary works for Line 2. The South Stream Offshore Pipeline will consist of four parallel gas pipelines of 931 kilometres across the Black Sea. In March 2014, the Italian company Saipem was contracted to perform the offshore laying of the first line and construct the landfalls and shallow-water parts for all four pipelines.

According to the newly signed contracts:

- Allseas will lay almost 900 km of offshore pipe to complete the second line. The Swiss-based company plans to use the new vessel Pieter Schelte for the job. With a total length of 477 metres and 6 welding and coating stations, the vessel is the biggest of its kind;

- Saipem will provide additional works for the laying of the second line. This includes engineering, coordination of storage yards, cable crossing preparations, and connecting the offshore pipeline to the landfall sections through so-called ‘tie-ins’.

Allseas will start laying of the second line in the summer of 2015 while Saipem will be laying Line 1. Line 2 will be taken into operations by the end of 2016.




Partners in LNG Canada Formalize JV Agreement Press Release, May 01, 2014; Image: LNG Canada

Shell Canada Energy, PetroChina Corporation, Korea Gas Corporation (KOGAS) and Mitsubishi

Corporation have announced, in the presence of Christy Clark, Premier of British Columbia and

Rich Coleman, Minister of Natural Gas Development and Minister Responsible for Housing and

Deputy Premier, the signing of a joint venture agreement to develop an LNG export project – LNG

Canada.

The new operating entity, LNG Canada Development Inc., is incorporated and registered under the federal laws of Canada. The proposed project, to be located in Kitimat, British Columbia, is subject to regulatory approvals and a Final Investment Decision by the joint venture.

LNG Canada continues to bring together the four companies’ extensive development experience, technical depth, financial strength and access to markets required to be a leading LNG developer in Canada. The signing of the joint venture agreement is an important milestone for the project as it formalizes the

joint venture and creates an operating entity that enables LNG Canada to progress the project and enter into agreements with potential suppliers and contractors. The project’s corporate offices will continue to be located in Vancouver, British Columbia and Calgary, Alberta, with the project office based in Kitimat, British Columbia.

“While we are in the early evaluation process and a decision to build the project is still a while away, this

agreement reinforces our commitment to developing an LNG facility in British Columbia and allows us to

proceed with the next steps in our project assessment,” said Andy Calitz, CEO LNG Canada. “We will

need to continue to work closely with the provincial and federal government to ensure that the project is

economically viable, as well as working closely with First Nations, the local communities, and regulatory

agencies, and move forward on a number of commercial agreements and contracts. We remain cautiously

enthusiastic about the potential opportunity in B.C. and look forward to exploring it further.”

The demand for natural gas, the cleanest burning fossil fuel, remains high in Asia and other global markets. LNG Canada would deliver a project that offers a new source of competitively priced LNG to global markets, while providing benefits to Canada, British Columbia and its coastal region.

“These four companies are working together to realize the immense potential of B.C.’s LNG – an industry

that could create up to 100,000 jobs overall in our province by exporting clean, reliable energy to the

growing economies across the Pacific,” said Premier Christy Clark. “There’s more work to do, but

momentum is clearly on our side.”

While there is considerable work that still needs to be done prior to the four companies making a Final Investment Decision, the initial technical work has now been completed, land has been acquired, the Project Description has been submitted and the Environmental Assessment is currently underway.




“Today is an important step forward for LNG Canada and we are pleased to join PetroChina, KOGAS and

Mitsubishi – strong LNG companies in their own right – to move this project forward together. LNG

Canada must compete across a portfolio of global options, but we remain optimistic that with the continued

co-operation of all interested parties LNG Canada can offer a valuable global market for Canadian natural

gas,” commented Jorge Santos Silva, Executive Vice President Shell Upstream Americas Commercial,

New Business Development and Integrated Gas.

“It is a great pleasure and honour to work closely with Shell, KOGAS and Mitsubishi Corporation. This

milestone signifies our strong alignment and though we come from different corners of the world, we are

confident that we will continue to step forward together” said Bi Jingshuang, Director – Legal

Department of China National Oil and Gas Exploration and Development Corporation (CNODC),

who represents PetroChina.

“LNG Canada, if realized, has the potential to play an important role in meeting the energy needs of Japan

and other countries that rely heavily on LNG, and we are pleased with this achievement,” stated Hiroki

Haba, Vice President, Natural Gas Business Division, Mitsubishi Corporation. “Together with the

significant investments we have been making in the upstream sectors in western Canada, Mitsubishi

Corporation remains fully committed to making the project a success.”

“The project provides a great chance to enhance energy supply security for countries, including Korea,

which are always in need of stable energy sources. LNG Canada is committed to the development of a

sustainable project providing benefits to local and global communities alike,” added Jongkook Lim, Vice

President, LNG Business Department, Korea Gas Corporation.

Upon signing the joint venture agreement, the joint venture partners’ respective interests in the project have been updated, with Shell now holding 50%,

PetroChina 20% and each of KOGAS and Mitsubishi Corporation holding 15%.




NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

Your partner in Energy Services

Good Day & See You next week

Khaled Malallah Al Awadi, MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990

Energy Services & Consultants Mobile : +97150-4822502

[email protected]

[email protected]

Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as

Technical Affairs SpecialiTechnical Affairs SpecialiTechnical Affairs SpecialiTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for st for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for st for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for st 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 the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations 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 Manager in Emarat , responsible Manager in Emarat , responsible Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed

great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply

routes. Manyroutes. Manyroutes. Manyroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for 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 andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcastEnergy program broadcastEnergy program broadcastEnergy program broadcasted ed ed ed

internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE

NewBase 01 May 2014 K. Al Awadi

New base special 01 may 2014

Economy & Finance

Transcript of New base special 01 may 2014