New base special 14 october 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,

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NewBase 14 October 2014 Khaled Al Awadi

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Schwarzenegger partners with Dubai's World Green Economy Summit By Courtney Trenwith

Hollywood actor and former governor of California Arnold Schwarzenegger has signed a deal that will see his not-for-profit environmental organisation become an official partner of Dubai’s World Green Economy Summit (WGES) in 2015. Schwarzenegger’s World Climate Region Summit R20 (R20), which was founded in 2010 to support governments to implement environmental projects with low carbon emissions and achieve economic development by addressing climate change, becomes a founding partner of the WGES

The agreement was signed during the R20 summit in Paris on Monday. The Dubai summit, to be held April 22-23, aims to encourage a global green economy and promote Dubai as a capital of green economy and sustainable development. Dubai Electricity and Water Authority (DEWA) CEO and Dubai Supreme Council of Energy vice chairman Saeed Mohammed Al Tayer said Schwarzenegger had used his global image to support world efforts to reveal the effects of climate

change and praised the importance of the R20 summit in supporting the efforts made by both the public and private sectors to set strategies and solutions that promote progress towards a green and clean economy.

HE Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of

Energy, MD & CEO of Dubai Electricity and Water Authority (DEWA) and

Chairman of the World Green Economy Summit (WGES 2015) presents Governor

Schwarzenegger the book 'Flashes of Thought' by HH Sheikh Mohammed bin

Rashid Al Maktoum, in addition to the first edition of the Green Economy Report

2015




Saudi petrochemicals lose out after oil falls The National + NewBase

Saudi Arabia’s petrochemical companies are expected to disappoint in the third quarter after crude prices fell 15 per cent over the same period, analysts say.

“The only sector where we could have some negative surprises is petrochemicals, because they took a hit with the fall of oil prices in the quarter,” said Sebastien Henin, the head of asset management at The National Investor, an Abu Dhabi-based investment bank.

Petrochemical prices are closely linked to prevailing oil prices because naphtha, a common feedstock, closely tracks the price of crude. Saudi Arabia is the biggest producer in Opec and its petrochemicals sector has the biggest representation on the kingdom’s stock exchange. Energy firms are forecast to report 3 per cent growth in net

earnings, according to the regional brokerage house Mubasher. Brent has declined to US$94.67 from $112.29 in the three months ended September 30. The results should trigger profit- taking as companies such as Sabic, the world’s biggest petrochemicals maker by market value, have performed extremely well of late, Mr Henin said. Shares of Sabic rallied 17 per cent from July 21 to September 9, he added.

Weighed by petrochemicals, Saudi Arabia’s companies are expected to register 5 per cent growth in profits to 25.5 billion riyals (Dh24.97bn), Mubasher wrote yesterday. The financial and healthcare sectors are expected to register growth of 16 per cent, it added.

Saudi Arabia’s stocks tumbled 6.5 per cent on Sunday, tracking global markets, after the IMF projected slower growth next year and after Germany reported sluggish export data, sparking concerns over the euro-zone economy. Shares rebounded yesterday, with the Tadawul All Share Index closing 2.2 per cent higher at 10,377.94.

The kingdom’s equity benchmark has surged 21.5 per cent so far this year, hitting a high of 11,149.26 on September 9 after the country’s cabinet approved laws to allow foreign investors to buy stocks directly from the market. Currently, foreigners can only buy shares of Saudi companies through vanilla swaps or exchange traded funds.

But the latest data on foreign ownership signalled that investors were net sellers in Saudi Arabia, yet net buyers across the region’s other bourses. The Tadawul had net outflows of $109 million last month, compared with Abu Dhabi, Dubai, Egypt, Kuwait, Oman and Qatar, which enjoyed a combined net inflow of $570m.

The largest net buying by foreigners last month was in Abu Dhabi and Dubai, with 22 per cent and 46 per cent of cumulative net inflows, Mubasher said.




GCC petchem sector Support manpower by 595,600 jobs Source GPCA + NewBase

The petrochemical and chemical industry, along with its supporting sectors, in the Arabian Gulf region employed over half a million people thorough direct and indirect jobs in 2013, according to

new data released by the Gulf Petrochemicals and Chemicals Association (GPCA). The petrochemical and chemical industry in the Gulf region directly employed 148,900, according to the GPCA. An additional 446,700 direct and indirect jobs were created by supporting industries, bringing the total number of jobs that rely on the downstream hydrocarbon industry in the Gulf to 595,600 in 2013. Strengthened by a rapidly expanding petrochemical sector and multi-billion

dollar investments, Saudi Arabia’s petrochemical industry employed directly 83,700 people, accounting for over half of the Gulf’s petrochemical industry’s workforce. The UAE is the region’s second largest market in terms of people, employing for 38,100 professionals, just over 25 per cent of the region’s chemical employees. Employment statistics in the region show that for the GCC petrochemical industry, the multiplier effect is around 1:3, as every 10 jobs directly created by the sector leads to an additional 30 indirect employment opportunities in the chemicals supply chain. Dr Abdulwahab Al Sadoun, secretary general, GPCA, said: “In 2013, the development of petrochemicals created a ripple effect that was responsible for more than half a million jobs in the GCC, resulting in the manufacture of over $102 billion worth of products. Petrochemicals is evolving into an industry that touches nearly every sector of the GCC economy, from supply chain, equipment manufacturing, construction and agriculture to retail and trade.” The GCC’s petrochemical industry’s capacity has grown consistently at 9.5 per cent year- on- year since 2008 and currently produces 140.5 million tons of products. Similarly, employment in the sector has risen cumulatively by 12.2 per cent in the same period. Petrochemicals are now the region’s second largest manufacturing sector in terms of contribution to GDP and the largest manufacturing employer, after metals, minerals and the food industry. Furthermore, GCC nationals make up 56 per cent of the industry’s workforce. Bahrain accounts for the highest number of nationals working in the industry, with 83 per cent of the chemical workforce being Bahraini nationals, followed by Saudi Arabia, where 63 per cent of the industry’s employees are Saudi nationals. The people aspect of sustainability will be a key focus during the upcoming GPCA Sustainability Conference. Now in its second edition, the annual event will be held from October 21 to 23, in Dubai, UAE.




UAE:ENEC participates at global meeting of Nuclear Energy Leaders in France WAM/AAMIR

The Emirates Nuclear Energy Corporation (ENEC) is participating at the inaugural World Nuclear Exhibition (WNE) 2014 this week in Paris, an international trade event which brings together the key players and decision makers in the nuclear energy industry to share knowledge and discuss business on a global scale.

The event opened today and is set to welcome more than 7000 professionals from over 34 countries, including eminent speakers and nuclear experts from across the nuclear energy industry globally.

ENEC is represented at the exhibition by a delegation led by the organization’s Chief Operating Officer, Thomas Samson, who will participate in the event’s opening panel discussion alongside other key industry leaders from around the world.

The panel will discuss how nuclear energy plants are being deployed and upgraded in response to world energy and climate challenges, and the various models for ensuring competitiveness, safety, sustainability and security of supply. ENEC is also hosting potential suppliers and partners at its stand in Hall 1 of the Le Bourget exhibition space.

Commenting on ENEC’s participation at the event, Mohamed Al Hammadi, ENEC’s CEO, said: "ENEC is building a programme that sets a benchmark for safety, efficiency and operational excellence, and with this comes the need for a large and diverse team of nuclear energy professionals, as well as a vast supply chain to service this rapidly growing industry here in Abu Dhabi." "Developing a skilled local nuclear energy workforce and pool of specialized suppliers to contribute to the on-going success of the U.A.E.’s peaceful nuclear energy program is a top-priority for ENEC. To achieve this, we are drawing on the support and guidance of an extensive international network of experts in the nuclear energy field, and throughout the programme’s development, we have looked to learn from experienced nations such as France," Hammadi added.

ENEC’s presence at WNE 2014 provides the organization with a platform on which to strengthen existing industry relationships, build new connections, and discuss further collaboration with the key players from the nuclear energy sector across the globe. The organization is looking to partner with leading international companies to bring vital skills and experience to ENEC’s programme and help in the transfer of knowledge to the local industry.

ENEC is on track to deliver safe, peaceful and efficient nuclear energy to the U.A.E.’s national grid by 2017.




Eni Signs Two PSCs for Offshore Exploration in Vietnam Eni + NeewBase

Eni on Monday said it has signed two Production Sharing Contracts (PSCs) with PetroVietnam for the exploration of Blocks 116 and 124, located off the coast of Vietnam.

Block 116 covers an area of about 5,000 sq km in the Song Hong basin, in waters with a depth ranging from 10 to 120 meters. The PSC block, wholly owned by Eni, provides for an exploration period of seven years divided into 3 phases.

Block 124 covers an area of 6,000 sq km in the Phu Khanhbasin, in waters that have a depth ranging from 50 to 2,600 meters. The PSC provides for an exploration period of seven years divided into 2 phases. This block is held by Eni, which is the operator with a 60% stake, and by Santos Vietnam with a 40% stake.

“The participation in these two new high-potential blocks will consolidate our presence in the area and support our growth in the Pacific basin. The proximity of these blocks to those which we already operate will enable us to exploit at best the logistical and operational synergies, with considerable savings in terms of time and costs,” said Eni' s CEO, Claudio Descalzi.




Gabon: Panoro Energy Development and Production Plan for Ruche,

Source: Panoro Energy

JV partner Panoro Energy has announced that the Direction Général de Hydrocarbures (DGH) has approved

the Development and Production Plan (FDP) for the Harvest-operated Ruche, which includes the Ruche

A (formally Ruche), Ruche B (Tortue), Ruche C (Moubenga) and Ruche D (Walt Whitman) discoveries.

The FDP is based on a centrally located Floating Production, Storage and Offloading vessel (FPSO) with

sub-sea wells tied back from each of these discoveries.

Front End Engineering Design (FEED) studies are already underway, and once completed a Final

Investment Decision (FID) will be taken by the Dussafu partners. FID is scheduled to be made in early Q1-

15 and based on the project schedule, production is expected to start in Q4-16.

The FDP approval by the DGH is an important milestone for the development of Ruche. Panoro look

forward to continuing working together with our partner Harvest (Operator) and the Gabonese ministry to

move forward with the development of these discoveries and to further unlock the significant pre-salt

exploration potential within the Dussafu license.

Panoro Energy holds a 33.33% stake in the Dussafu Marin permit. The permit is operated by Harvest

Dussafu, an affiliate of Harvest Natural Resources.




Azerbaijan: Statoil sells 15.5% share in Shah Deniz to PETRONAS for US$2.2B Source: Statoil

Statoil has sold its 15.5% participating interest in the Shah Deniz production sharing agreement, 15.5%

share in the South Caucasus Pipeline Company (SCPC), 15.5% share in the SCPC holding company, and

12.4% share in the Azerbaijan Gas Supply Company (AGSC) to the Malaysian oil and gas company

PETRONAS. The transaction value is USD 2.25 billion.

'Statoil has created significant value by participating in

the development of this asset over the years and we are

pleased to announce this deal with PETRONAS. The

divestment optimises our portfolio and strengthens our

financial flexibility to prioritise industrial development

and high-value growth,' says Lars Christian Bacher,

executive vice president for Development and

Production International in Statoil.

In recent years Statoil has strengthened its resource base

and industrial opportunity set. To prioritise high

potential future developments, Statoil has realised

substantial value from transactions on the Norwegian

continental shelf and internationally. This portfolio

optimisation continues to increase financial strength and

flexibility to deliver on our strategy for high-value growth. Statoil’s 2014 second quarter production from

the Shah Deniz field was 38,000 barrels of oil equivalent per day.

Statoil’s 2014 second quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent per

day.

Following the divestment, Bacher says, 'We remain committed to our business in Azerbaijan, which

continues to play an important role in Statoil’s international portfolio.' The effective date is 1 January 2014.

The transaction is expected to be closed early 2015, subject to approval from the relevant authorities.

Shah Deniz

The Shah Deniz field was

discovered in 1999. It is located on

the deep water shelf of the Caspian

Sea, 70 kms south-east of Baku, in

water depths ranging from 50 to

500 metres. Shah Deniz Stage 1

began operations in 2006. The

Shah Deniz partners are currently

producing approx. 26 million

cubic meters of gas and 53,000

barrels of condensate per day,

approx. equivalent to 225,000

barrels of oil equivalent per day.

The Shah Deniz field is operated

by BP (28.8%) and the other partners are TPAO (19%), SOCAR (16.7%), Lukoil (10%), Nico (10%).




Horizon Oil strikes again in Beibu Gulf (China) Source Horizon Oil

Horizon Oil has completed the drilling of the second of a two exploration well program in the Beibu

Gulf Block 22/12, offshore China.

The WZ 12-10-2 well is located is located in 36 m of water 1.6 km east northeast of the existing WZ 12-8W platform and about 3.2 km west southwest of the recently drilled WZ 12-10-1 oil discovery.

The well spudded at 2300 hrs China Standard Time on 3 October 2014 with the COSL Rig HYSY 935. The current exploration well, WZ 12-10-2, discovered high porosity net oil pay of ~11 m true vertical depth in the Jiaowei T42 formation.

The well was drilled to a total measured depth of 1,590 m (1,382 m TVDSS), where granite basement was intersected, as prognosed. Wireline evaluation logging programs, including pressure measurements, fluid sampling, formation imaging and sidewall coring, have been run and confirmed the oil pay in the Jiaowei T42 reservoir has favourable reservoir porosities of about 31% and oil gravity of approximately 29 deg API.

The well has been plugged and abandoned and the rig will be released shortly.

According to Horizon Oil, the 2014 Beibu exploration drilling program has been successfully completed with no safety or environmental incidents. Further work will now be undertaken to evaluate both the extent of the structure and reserves, and assess the most effective route for integrating these additional oil resources into the existing Beibu project.

Horizon Oil’s Chief Executive Officer, Brent Emmett, commented: “This is a very pleasing result, being the second discovery in a two well exploration campaign. Horizon Oil’s view is that it is likely that the WZ 12-10-2 oil accumulation will be able to be developed from the WZ 12-8W platform development facilities, thereby taking advantage of the existing development facilities. In the same way, the WZ 12-10-1 discovery will support the future integration of the proposed WZ 12-8-E development. As a result, we expect the new discoveries to deliver favourable economics and to extend the life of the Beibu Gulf project. Horizon Oil would like to acknowledge that these discoveries are the result of very productive collaboration and cooperation between our joint venture and CNOOC-Zhanjiang (CLZ). The positive results we have been able to report during this program are a direct result of that successful team work.”

Participating interests in the Beibu Gulf Project are: CNOOC Limited (Exploration 0%, Production and Development 51.0%); Roc Oil (China) Company (40%; 19.6%); Horizon Oil (Beibu) Ltd and Petsec Petroleum LLC (55%; 26.95%); Oil Australia Pty Ltd (Majuko Corp) (5%; 2.45%).




Gas Natural Fenosa to buy CGE, eyes LNG expansion LNG World News Staff, October 13, 2014; Image: GNL Quintero

Gas Natural Fenosa plans to buy 100 percent of CGE’s stock, taking a minimum initial stake of 54,19 percent, according to a statement by GNF.

CGE, an electricity distribution company and a natural gas distributor, is also involved in the LNG business through its participation in the Quintero import terminal.

LNG player Gas Natural Fenosa of Spain said it has signed a deal to acquire Chile’s Compañia General de Electricidad (CGE) for EUR 2.6 billion.

“Chile is expected to become one of the main LNG import markets ruled by international pricing mechanisms in which GNF could leverage the potential of its LNG platform,” GNF said.

GNF operates nine LNG tankers and has stakes in liquefaction plants in Damietta and Qalhat, and in regasification plants: Sagunto, Reganosa and Ecoeléctrica.




Oil prices at 4-year lows, yet will halt slump in the long run NewBase Update

Brent oil prices fell more than $2 a barrel to less than $88 on Monday in New York, its lowest since 2010, after key Middle East producers signaled they would keep output high even if that meant lower prices.

Early on Monday, Brent crude touched its lowest since December 2010 at $87.74. But Brent pared losses, trading down $2.04 on the day at $88.17 by 11:12 ET (1512 GMT). US crude was down $1.12 at $84.70. Brent oil prices have tanked by nearly 25 percent since June as ample supply coincided with weak demand, raising the possibility that the Organization of the Petroleum Exporting countries could cut output. OPEC is due to discuss output at its next meeting Nov. 27. The outlook in Europe remained gloomy as rating agency Standard and Poor’s lowered its outlook on France to negative from stable on Friday. European stocks fell in early trading on Monday. According to chart analysts, oil prices could be on the brink of sliding another $10 or more. They say a drop of over 20 percent since June has wiped out key support levels and left behind a “technical graveyard”. “If Brent closes below $88.49, I’m pretty certain that further downward pressure can be expected until the next significant level at $82.35,” said Tamas Varga, an analyst at brokerage PVM Oil Associates in London. Saudi Arabia reported September production of 9.704 million barrels per day (bpd), up from 9.597 million in August, according to a monthly OPEC report issued on Friday. Kuwait’s Oil Minister Ali Al-Omair, was quoted as saying by state news agency KUNA on Sunday that $76 to $77 a barrel might be the level that would end the oil price slide, since that was the cost of oil production in the United States and Russia.




Oman Energy Forum to discuss challenges facing O&G sector BYTIMES NEWS

Local and international oil and gas experts will debate the challenges facing this industry in Omanat an energy forum due to be held in Muscat on October 21 . The second Gulf Intelligence OmanEnergy Forum will be held under the theme 'Oman 2014: global ambitions, critical localchallenges'

Oman's oil and gas sector will have to play an increasingly prominent role in addressing some ofthe Sultanate's most pressing challenges including creating greater in-country value (ICV),supporting the development of small and medium enterprises (SME), and fostering innovation andhuman development as part of a broader strategy to transform the country from a hydrocarbon-based economy into a sustainable, knowledge-based one

With oil and gas production accounting for about half of Oman's gross domestic product (GDP),the energy sector plays a crucial role in the Sultanate, not only as a source of governmentrevenues but also as an employer of Omanis and a provider of knowhow and technology "Given the oil and gas sector's size and weight in the local economy, it will have to be at theforefront of tackling the challenges we are facing today, and we're proud to be the Title Partner atthe second Gulf Intelligence Oman Energy Forum," said Eng. Isam Al Zadjali, chief executiveofficer of Oman Oil Company . "It is critical to address the issues of In Country Value (ICV),human capital, innovation and SME with a sense of urgency as the country moves ahead with theimplementation of its development plans," he added

Oman's strategy for the oil and gas sector aims at empowering all aspects of the domestic oil andgas supply chain, ranging from providing technical assistance and expertise to small-scale localmanufacturers to training people for jobs in the energy sector, while also ensuring that operatorsgive back to the community

At the same time, Oman will have to reassess future allocations of its domestic hydrocarbonresources. The Sultanate will have to more than double domestic power generation capacity by2020 if electricity demand continues to grow at the existing rate of about 10 per cent annually,adding significant pressure on the sultanate's already tight natural gas resources used to fire localpower stations and feed domestic industries such as petrochemicals

Rising energy demand presents Oman with a string of challenges. The Sultanate will have to devise a long-

term strategy to diversify its energy mix and add alternative power generation sources. In addition, it must

continue exploring options to secure reliable gas import channels, while also having to decide on whether or

not to let its liquefied natural gas (LNG) export commitments expire in the next decade and forego on much

needed revenues to save gas for domestic power generation.




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

Your partner in Energy Services

Khaled Malallah Al Awadi, Energy Consultant

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

Mobile : +97150-4822502 [email protected] [email protected]

Khaled Al Awadi is a UAE National with a total Khaled Al Awadi is a UAE National with a total Khaled Al Awadi is a UAE National with a total Khaled Al Awadi is a UAE National with a total

of 24 yearsof 24 yearsof 24 yearsof 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas Oil & Gas Oil & Gas Oil & Gas

sector. Currently working as Technical Affairs Specialist for sector. Currently working as Technical Affairs Specialist for sector. Currently working as Technical Affairs Specialist for sector. Currently working as Technical Affairs Specialist for

Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external

voluvoluvoluvoluntary Energy consultation for the GCC area via Hawk ntary Energy consultation for the GCC area via Hawk ntary Energy consultation for the GCC area via Hawk ntary Energy consultation for the GCC area via Hawk

Energy Service as a UAE operations base , Most of the Energy Service as a UAE operations base , Most of the Energy Service as a UAE operations base , Most of the Energy Service as a UAE operations base , Most of the

experience were spent as the Gas Operations Manager in experience were spent as the Gas Operations Manager in experience were spent as the Gas Operations Manager in experience were spent as the Gas Operations Manager in

Emarat , responsible for Emarat Gas Pipeline Network Facility Emarat , responsible for Emarat Gas Pipeline Network Facility Emarat , responsible for Emarat Gas Pipeline Network Facility Emarat , responsible for Emarat Gas Pipeline Network Facility

& gas compressor stations & gas compressor stations & gas compressor stations & gas compressor stations . Through the years , he has . Through the years , he has . Through the years , he has . Through the years , he has

developed great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the of gas pipelines, gas metering & regulating stations and in the of gas pipelines, gas metering & regulating stations and in the of gas pipelines, gas metering & regulating stations and in the

engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operatiengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operatiengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operatiengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance on & maintenance on & maintenance on & maintenance

agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas 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 andConferences held in the UAE andConferences held in the UAE andConferences held in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels . Energy program broadcasted internationally , via GCC leading satellite Channels . Energy program broadcasted internationally , via GCC leading satellite Channels . 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 14 October 2014 K. Al Awadi

New base special 14 october 2014

Economy & Finance

Transcript of New base special 14 october 2014