New base special 09 march 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

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NewBase 09 March 2014 Khaled Al Awadi

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

UAE Ministry of Energy to participate in 11th Middle East Geosciences Conference and Exhibition

http://gulfnews.com/business/oil-gas/

Ministry of Energy and a number of national oil companies operating in the UAE will participate in 11th Middle East Geosciences Conference and Exhibition in Manama, Bahrain. The four-day event will be held at Bahrain International Exhibition and Convention Centre under the patronage of Prince Khalifa Bin Salman Al Khalifa, Prime Minister

of the Kingdom of Bahrain.Dr Mattar Hamed Al Neyadi, Undersecretary at the Ministry of Energy will lead the UAE delegation, which includes a number of officials from the Department of Geology and Mineral Resources at the Ministry and other national oil companies operating in the country.Started in 1994, the GEO exhibition is the premier showcase of oil and gas exploration technology and services in the Middle East, attracting NOCs, IOCs and major operating companies.

Regular high profile international exhibitors include super majors Chevron, ExxonMobil, Shell and Total and service industry giants BGP, CGGVeritas, Halliburton, Occidental Petroleum Corporation, Schlumberger and Weatherford. A host of specialist suppliers and distributors, numerous new entries to the Middle East market and large national groups from North America and the UK complement this line up.




Oil rig builders face a lean outlook April Yee , http://www.thenational.ae/business/energy

Rig builders may be in for a tough few years as oil producers slow the growth of their offshore operations. Spending on offshore exploration and production by the majors grew by 10 per cent last year compared to 17 per cent in 2012, said DNB, a German transport finance bank. This year, growth is projected to slow to 4 per cent.

“It’s because the oil majors have a significantly reduced profitability for their business,” said Geir Sjurseth, the managing director and head of offshore finance at DVB Group Merchant Bank Asia, the bank’s Singapore-based unit. “They are reining in spending because the oil price is not high enough. They need the oil price to go to US$130 or $140.”

Global vessel suppliers have continued to expand their fleets faster than the growth of oil production, which will eventually lead to a glut of supply, said Mr. Sjurseth at a ship finance conference in Dubai yesterday. Since 2005, the world’s offshore rig fleet has grown by 53 per cent but offshore oil production has actually declined from 24 million barrels per day to 22.5 million today.

Although companies such as Lamprell can boast full order books, day rates are being pushed down and the next few years will bring a “massive oversupply in jackup rigs”, said Mr. Sjurseth. The rise of shale in the United States has also drawn resources from offshore to onshore exploration and taken away some of the lustre of technically challenging Arctic exploration.




Genel: Oil presence confirmed at Cap Juby well, offshore Morocco http://www.offshoreenergytoday.com/genel-oil-presence-confirmed-at-cap-juby-well-offshore-morocco/

Genel Energy has informed that the JM-1 well on the Cap Juby prospect offshore

Morocco has encountered oil shows.

The company said that the Cairn Energy-operated well has confirmed the presence of oil in the Upper

Jurassic, as originally tested by the

1968 MO-2 well, some 2km from

the JM-1 location. The well, located

in the Juby Maritime III block in

100m of water where the primary

objective is some 1,000m below the

1969 Cap Juby oil discovery in the

Upper Jurassic, continues to drill

ahead to the primary Middle

Jurassic target . The well is currently

at 3,100 metres, with 600 metres left to

drill to the prognosed Middle Jurassic

primary target.

Genel said that exploration wells are planned on both the Sidi Moussa and Mir Left licences during 2014 using the Noble Paul Romano semi-submersible rig. On the Sidi Moussa licence, the most likely target is the Nour prospect. On Mir Left, prospect maturation is currently ongoing.

Tony Hayward, Genel CEO said: “In Africa we have begun a high-impact exploration programme targeting

over 900 mmboe of prospective resource this year, with the first well underway in Morocco and a further

three to follow in Malta and Morocco. Each well has the potential to make a material impact on our already

significant reserve and resource base.”




ExxonMobil hires Welltec for well intervention in Angola

Welltec Corporation, a Danish based, oil and gas services company, has been awarded a

three year, direct contract from an ExxonMobil subsidiary in Angola.

Esso Exploration Angola (Block 15) Limited (Esso Angola), Operator of Angola Block 15, has hired Welltec

for the provision of conveyance and well intervention services including clean-out and mechanical

manipulation.

Welltec® technologies and services increase flexibility and reduce the mobilization time for key intervention operations compared to conventional intervention methods utilizing coiled tubing or jointed pipe. Other benefits include a reduction in the number of lifting operations, personnel and footprint, all contributing to improved risk management; particularly in environmentally sensitive environments.

Gbenga Onadeko, Welltec Senior Vice President, Africa explains that “Welltec®, a pioneer and market

leader of robotic conveyance and intervention technologies, is extremely pleased by this award from Esso

Angola. We have provided services to Esso Angola since 2005.”

Welltec® is the largest provider of tractor technology for conveyance solutions as well as the foremost provider of milling, clean-out and mechanical solutions globally. These technologies have been successfully developed and applied by Welltec® for nearly two decades.




Vallourec to deliver $100M worth of pipes to Total in Brunei

Vallourec, a provider of tubular solutions, has been awarded a $100 million contract for the supply of premium pipes with VAM® 21 connections for the offshore ML-South Project, operated by Total’s affiliate Total E&P Borneo in Brunei.

After a successful exploration campaign started in 2007, Total has a drilling program starting with 6 development wells from 2015. ML-South is located in Block B offshore Brunei and is an extension of the producing Maharaja Lela Jamalulalam field with water depth of approximately 65 meters, and is expected to hold important gas and condensate reserves.

The development wells will be producing at depth greater than 5,000m, in a highly corrosive environment and sustaining High Pressure/ High Temperature (HP/HT). These conditions position the project at a new field development frontier. It highlights Total’s expertise in operating in very complex environments and consolidates Vallourec’s leadership position in supplying premium OCTG (Oil Country Tubular Goods) solutions to the oil & gas industry.

Vallourec is a major player in the profitable oil and gas market, which requires highly reliable products, Vallourec offers cutting-edge technology for finding and exploiting new hydrocarbon reserves. The Group is world-renowned for its expertise in designing and developing products adapted to the most extreme conditions, be it offshore drilling, deep wells, corrosive environments, deviated or horizontal wells, or High Pressure/High Temperature (HP/HT). The deposits which are currently being exploited by oil companies are increasingly difficult to access and therefore require increasingly sophisticated tubular solutions.

2. Features of VAM®21

(1) VAM®21 threaded connections have an unprecedented high sealing performance. VAM®21 features an extended lip called

VAM Stabilizer™ at the tip of the seal face, an area to prevent leakage by firmly attaching an internal thread with an external

thread at the edge of the OCTG.




Heerema starts construction of Marathon Oil’s Alba Platform Press release

Today the ceremonial first cut of steel for the Alba field B3 compression platform project was

celebrated by operator Marathon E.G. Production Limited (MEGPL), a wholly-owned subsidiary

of Marathon Oil Corporation and Heerema Fabrication Group (HFG) together with its project

partner Iv-Oil & Gas (Iv) at HFG’s Poland fabrication facility in Opole.

HFG performed the first cut of the steel, which will be used to build the 4,500 ton Alba B3 compression topside destined for the Alba gas and condensate field. The Alba field is located approximately 20 miles offshore north of Bioko Island in Equatorial Guinea.

HFG as main contractor will manage the overall project and jointly execute the EPC scope from Iv-AGA’s (a subsidiary of Iv-Groep) offices in Houston, United States. Immediately after the project was awarded in April 2013, the design and engineering started. The T&I of the platform has been subcontracted to HFG’s sister division Heerema Marine Contractors in Leiden, the Netherlands.The Alba B3 compression platform will consist of a 4,500 ton topside

and a 4-legged 2,000 ton jacket which will be fabricated at the Heerema Zwijndrecht and Heerema Vlissingen yard, respectively. At HFG Polska, one of the HFG fabrication yards and specialised in fabrication of complex small steel structures, the nodes and plate girders of the Alba B3 compression topside will be fabricated. The nodes and plate girders will be delivered to Heerema Zwijndrecht where they

will be fitted in the topside. Koos-Jan van Brouwershaven, CEO of Heerema Fabrication Group said:

“The first cut of steel today at our brand

new facility in Poland, HFG Polska,

represents an important milestone in the

fabrication process of the Alba B3

compression platform, where we physically

commence construction of the topside. By

using our own facility in Poland we are able

to offer our client, MEGPL, delivery of the

same high-quality and safety standards as

clients are used to expect from a Heerema

company.”




About Equatorial Guinea Oil & Gas http://www.eia.gov/countries/cab.cfm?fips=ek

Equatorial Guinea became a significant oil and natural gas exporter with the discovery and

development of large offshore oil reserves in the

1990s. As production increased, the country grew

by an average real annual growth rate of 26.2

percent from 2001 to 2005, according to the

World Bank. Hydrocarbon production is the basis

of the country's economy and consists of crude

oil, condensate, natural gas plant liquids (NGPLs),

and dry natural gas. According to the International

Monetary Fund's latest data, the hydrocarbon

sector represented over 90 percent of government

revenue and about 98 percent of export earnings.

Equatorial Guinea's hydrocarbon production is

concentrated offshore its main island of Bioko,

which is also home to the capital city, Malabo.

Hydrocarbon production also occurs offshore the

country's mainland, Rio Muni, which is nestled

between Cameroon and Gabon. Production of the country's dominant hydrocarbon, crude oil, has

been declining as a result of maturing oil fields. However, the recent start-up of the Aseng oil and

gas-condensate field and the anticipated start-up

of the Alen gas-condensate field in late-2013 are

projected to revive liquids production in the near

term.

Oil Sector :

According to the Oil & Gas Journal, Equatorial

Guinea had proved oil reserves of 1.1 billion

barrels as of January 2012. Latest EIA estimates

show that Equatorial Guinea's total liquids

supply was about 320,000 barrels per day (bbl/d) in 2011. Equatoguinean oil production originates

almost entirely from the Zafiro, Ceiba, and Okume fields, while condensate production comes from

the Alba field. A detailed map of oil and gas licenses and activities is available through the Ministry

of Mines and Energy Website.

Since the 1995 discovery of the Zafiro field, Equatorial Guinea's oil supply increased dramatically,

peaking at 376,000 bbl/d in 2005. At peak, roughly 65 percent of total output came from the Zafiro

field. However, over the last decade, the Zafiro field has gradually matured and output at the field

has nearly halved. In turn, liquids production in Equatorial Guinea has steadily declined for the last

few years.




Production Equatorial Guinea's declining output is expected to reverse in 2012, driven by new production from the Aseng field that came on-stream November 2011. Shortly after its start, the field reached around 50,000 bbl/d as four subsea wells were brought online. According to the country's Ministry of Mines, Industry and

Energy, production at Aseng, situated in Block 1 offshore Bioko Island, started seven months ahead of schedule and was 13 percent under budget. U.S.-based Noble Energy is the field's main operator and estimates a recovery of about 120 million barrels of liquids over the project's lifespan. New production is also

expected in late-2013

from the Alen gas-

condensate field, with an

initial output of about 37,000 bbl/d. Alen is

located in the Douala Basin and extends from Block O (95 percent) to the northern part of Block I (5 percent). The new projects are expected to offset dwindling oil production from existing fields: Zafiro, Ceiba, Okume, and Alba. Natural Gas :

According to the Oil & Gas Journal, Equatorial Guinea had 1.3 trillion cubic feet (Tcf) of proven natural gas reserves as of January 1, 2012. The majority of the reserves are located offshore Bioko Island, primarily in the Alba and Zafiro associated natural gas fields. From 2001-2010, Equatoguinean natural gas production increased rapidly from 1 billion cubic feet (Bcf) to 238 Bcf as new projects came online. Domestic consumption over the same period went from 1 to 56 Bcf and was

increasing alongside of production until 2007, when the completion of the Punta Europa liquefied natural gas (LNG) facility on Bioko Island allowed for greater exports.




Liquefied Natural Gas (LNG) :

Most of Equatorial Guinea's natural gas production is exported in the form of LNG. Marathon Oil Corporation and its partners completed Train 1 of the $1.4 billion Punta Europa LNG facility on Bioko Island in May 2007. Train 1 has a capacity of 3.7 million tons of LNG per annum and processes dry gas from the Alba Field.

The Equatoguinean government signed an agreement on January 17, 2012 to develop a second LNG Train at a cost of $4 billion to double LNG output. The agreement was signed by the Ministry of Mines, Industry and Energy and state-owned companies (Sonagas and GEPetrol), along with a consortium of international companies that are invested in Blocks I, O, and R along with those involved in the first LNG train. The next phase for the LNG Train II Integrate Project is to define project scope and timing; signatories anticipate Train II to start operation in 2016. Feedstock is expected to come from associated gas from Blocks I, O, and R. Exports In 2010, Equatorial Guinea exported approximately 179 Bcf of LNG, of which nearly two-thirds went to Asia, namely Korea (33 percent) and Japan (15 percent), while most of the remainder went to Chile (30 percent). Equatorial Guinea's LNG exports to Japan reportedly increased in 2011 after the earthquake hit Japan in March 2011 and left much of the country's nuclear power offline, prompting Japan to increase LNG imports from suppliers further afield.




India: Oilex spuds Cambay-77H horizontal production well Source: Oilex

Oilex has announced that Cambay-77H horizontal production well drilling operations commenced on 07 March 2014 with the successful completion of a six (6) hour commissioning period at 1230 hours IST. The rig is currently drilling ahead at 76m Measured Depth (MD). Refer to the attached figures.

Cambay-77H is located adjacent to the Cambay-76H horizontal well that underwent a successful multiple staged fracture stimulation programme along its 633m lateral section in 2012 but was suspended prior to testing due to downhole mechanical problems. The Cambay-77H well design incorporates all of the key operational and technical learnings that have arisen from a forensic engineering analysis of Cambay-76H by multiple expert parties.

A shorter lateral section (350m) coupled with a conventional 'plug and perf' method for fracture stimulation is expected to facilitate the primary goal of the well - recording hydrocarbon flow information at surface during a production test. Oilex intends to inform the market about progress during drilling operations on a milestone basis as indicated below.

• Setting and cementing of the 13 3/8" casing at approximately 615mMD

• Setting and cementing of the 9 5/8" casing at approximately 1,650mMD

• Completion of drilling operations at well TD, approximately 2,357mMD

• Setting and cementing of the 4 ½ " production casing

• Completion of mobilisation of the fracture stimulation spread to site

• Completion of the fracture stimulation programme

• An announcement in relation to flow back and production testing will be dictated by the well response to

the stimulation programme

A time gap between setting and cementing the 4 ½ inch production casing and completion of mobilisation of the fracture stimulation spread is anticipated to minimise potential standby charges associated with demobilisation of the drill rig from site.

Managing Director of Oilex, Ron Miller, said:

'Drilling operations have commenced within the anticipated window and I have the utmost confidence in the Oilex Well Construction Team in India. All procedures and techniques to minimise operational risks for the drilling and completion of Cambay-77H have been reviewed and implemented, although drilling operations are never without risk. We look forward to measuring a sustained hydrocarbon flow test from this well and validating not only our own expectations of this reservoir but numerous third party analyses for the potential resource base of our Cambay asset.'




Libya: BP shelves onshore exploration in Libya as instability grows Source: Reuters

Oil and gas major BP said it had mothballed plans to explore in Libya's Ghadames basin because of security concerns, the latest in a series of companies to rethink their projects amid growing instability. Three years of turmoil since the Arab Spring and tough contract terms have prompted oil firms to reassess their role in Libya, and several have said they would postpone their plans or scrap them altogether.

BP's exploration and production sharing agreement with Libya covers onshore acreage in Ghadames, near the border between Libya, Algeria and Tunisia, and offshore acreage in the central Sirte basin. 'With respect to the onshore exploration drilling programme, a security review in June concluded that this could not be safely and securely delivered by BP at this time. Alternative approaches are being considered,' BP said on Thursday in its annual report.

The British company was continuing with its offshore plans, where safety risks are much lower. 'Preparation work towards our offshore exploration drilling programme is continuing,' it said.

BP signed the agreement with Libya in 2007, when it was seen as a landmark deal that sealed former dictator Muammar Gaddafi's return to the international fold after years of sanctions. BP is still at the exploration stage and does not produce oil in Libya. Its assets there were worth $472 million at the end of 2013, according to its annual report.

Since Gaddafi's overthrow in 2011, instability in Libya has been rising, with attacks on foreigners becoming increasingly frequent. A mix of disgruntled workers, separatists and militias have blocked much of its oil exports for months at a time. In September, Exxon Mobil, the world's largest publicly traded energy firm, said it would cut its staff and operations in Libya due to growing insecurity. Royal Dutch Shell abandoned exploration on two blocks in 2012 due to disappointing results. Last year Marathon Oil attempted to sell its stake in one of Libya's top oil ventures, but Libya blocked the deal.

BP was one of several oil companies that scrambled to return to Libya after 2003. In bidding rounds opening up territory that had been off limits for years, companies accepted some of the industry's tightest exploration and production terms.




Bahrain 'producing 850MW of surplus power' TradeArabia News Service

Bahrain is now producing 850MW of surplus power, according to a top government official.

Minister of State for Electricity and Water Affairs Dr Abdulhussain Mirza ( photo in image )

said it is sufficient to take care of the kingdom’s needs, taking into consideration a five per cent

annual increase in power consumption, reported the Gulf Daily News (GDN), our sister

publication.

Total power generation is expected to reach 3,923MW this summer, he told our sister paper

Akhbar Al Khaleej , adding that the Electricity and Water Authority may resort to GCC Power Grid,

if required. Meanwhile, consumption this summer is expected to reach 3,080MW and the 850MW

surplus will ensure a safe network performance, Dr Mirza said. –

Al Hidd (Bahrain) KA13E2 combined cycle power plant




Qatar LPG exports will stay unchanged till 2018 . - Reuters

Qatar is expected to export around 10 to 11 million tonnes per year of liquefied petroleum gas (LPG) between 2014 and 2017 before domestic petrochemical consumption reduces exports in 2018, state marketer Tasweeq said on Thursday.

"We are now consistently exporting almost around 11 million tonnes per annum," Tasweeq's CEO Saad Al Kuwari told the International LP Gas Seminar in Tokyo. Proposed domestic petrochemical projects such as Al Sejeel, Al Karaana, and Qapco project expansion will consume some Qatari LPG volumes, hurting its exports, he said.

LPG exports are projected to drop to around 8 to 9 million tonnes per year in 2018, Tasweeq's presentation material indicated. Qatar, the world's biggest LPG exporter, has more than doubled its LPG exports to Asia in 2013 from 2008 levels, the CEO added.

Saudi Arabia's state-run Saudi Aramco, meanwhile, has been exporting a little below 8 million tonnes per year of LPG and the exports would continue around the level for the future, a Saudi Aramco official also told the seminar .

By 2020, if we look at the Middle East’s export availability taking away domestic demand

compared to the import requirement from Asia-Pac, we see that there is an excess of ~21

MTPA of LPG coming out of the Middle East that can be further utilized for other purposes.




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

Your partner in Energy Services

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

Energy Services & Consultants Mobile : +97150-4822502

[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

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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 broEnergy program broEnergy program broEnergy program broadcasted adcasted adcasted adcasted

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NewBase 09 March 2014 K. Al Awadi

New base special 09 march 2014

Economy & Finance

Transcript of New base special 09 march 2014