New base special 17 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

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

NewBase 17 March 2014 Khaled Al Awadi

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

McDermott’s DSV conducts emergency pipeline repair in UAE Source McDermott

McDermott International, Inc. announced that the Dive Support Vessel Thebaud Sea (“DSV”) was recently mobilized for an Emergency Pipeline Repair intervention offshore the United Arab Emirates.

This is the third time in recent months that the DSV has been fast-tracked to carry out an emergency response. This contract is included in McDermott’s first quarter 2014 backlog.

“Pipeline failures can often result in significant production loss, which is why reaction speed to these cases is

critical,” explained Scott Cummins, Executive Vice President, Offshore. “Although there is added pressure due to

the impact in oil revenues, Health, Safety and the Environment remains at the forefront for Emergency Pipeline

Repair Systems (“EPRS”). The pipeline must be safely isolated and then stabilized before any repairs can be

executed, to ensure the safety of the diver and the environment.”

With the support of in-house offshore resources, McDermott engineering teams have completed several EPRS studies on behalf of a number of clients. For each repair scenario, an individually tailored solution was delivered to cater to specific emergency responses to pipeline damage.

“Every case is unique, which is why the approach must be robust enough to handle any given situation,” commented

Cummins. “Our operational knowledge, experience and expertise defines our engineering deliverables as real

solutions, over theoretical studies. We are pleased that our clients have shown repeat confidence in our EPRS

capabilities,” he concluded.

HULL Dimensions:

LOA: 267 ft

LBP: 241 ft

Beam: 54 ft

Depth: 23 ft

Operating Draft: 19.03 ft

Gross Net: 2,859.4 ST / 867.6 ST

COMMUNICATION & NAVIGATION Communication: email / fax / VSAT /

F77

Radio: GMDSS, VHF, UHF, SSB

Radar: 2

Gyro Compass: 2

Echo Sounder: 1

ACCOMMODATION

Berths (air conditioned & H ): 49 Medical: clinic with one bed Other Facilities: mess room,

galley, lounge




Dutch firm Van Oord wins $695m Kuwait dredging deal By Daniel Shane , Arabian Business

The Netherlands’ Van Oord, which previously worked on the construction of the manmade Palm Jumeirah island, has won a $695m deal to provide land reclamation services in Kuwait.

The contract, which is with the Kuwait National Petroleum Company (KNPC), will see Van Oord dredge land in the Gulf state’s Al Zour area for the construction of a new refinery, which will produce 615,000 barrels per day.

The project is the first phase of KNPC’s $25bn investment in the new refinery. “The Middle East has been very important to Van Oord for decades, and we are pleased to continue working and strengthening our position in this area with this contract,” said Van Oord CEO Pieter Van Oord.

Van Oord said that the project will start immediately and be completed within 30 months. The company was previously contracted by Dubai’s Meraas Development to construct the Pearl Jumeirah island.

Van Oord has been working in Dubai since 2001. It has worked on projects such as the construction of the Palm Jumeirah, The World and Palm Deira, the harbour development in Mina Zeyahi, the land reclamation for Dubai Maritime City and the reclamation of various beaches were realised by Van Oord.




CC Energy’s output crosses 23,000bpd of crude oil in Oman BYTIMES NEWS SERVICE

CC Energy Development (CCED) has achieved over 23,000 barrels of crude oil production per

day from its two oil concession areas in Oman —

Block 3 and Block 4. "We have started crude

production in 2010 and it is a great success for a

small company like ours," said Shahrock Etebar,

chief executive officer of CE Energy Development.

He said the company has built 20km of pipeline to

transport oil to the facilities of Petroleum

Development Oman (PDO), besides setting up two

permanent facilities. CE Energy is the operator of

Block 3 and Block 4 and holds 50 per cent stake,

while Tethys Oil and Mitsui hold the remaining

ownership.

Etebar, who made a presentation on the company's

achievements recently, said that his company has produced

3.2 million barrels of oil in the first phase of its operation,

while in the second phase, it touched 875,000 barrels so far.

Omanisation

"When we started work at the beginning of 2010, we were

only 15 people. Today, we have 420 people and

Omanisation is 70 per cent," he said,

adding: "So far, we have hired 110

employees from the local

community."

One of the main strengths of CCED

is its ability to reduce the cycle time

from exploration to production by

parallel appraisal and development

programmes and utilisation of the

nearby infrastructure to bring the

exploration wells on stream

immediately after well completion.

This completion is only achievable by

utilising highly experienced and

empowered team, proper planning,

leadership, communication and a good relationship with the stakeholders.




Shell hits oil off Malaysia http://www.upstreamonline.com/live/article1355387.ece

Anglo-Dutch supermajor Shell has made an oil discovery with an appraisal well at the Limbayong gas field

off the coast of Sabah, Malaysia.

State-run Petronas, which holds a stake in the well, revealed on Monday the Limbayong-2 well had

intersected 136 metres of oil bearing sands and added more work would be carried out on the discovery to

determine its recoverable volume.

“We are indeed pleased with the discovery which affirms the hydrocarbon prospects of Malaysia’s deep-

water areas,” Petronas executive vice president of exploration and production, Dato’ Wee Yiaw Hin said.

The Limbayong discovery lies in 1000 metres of water on Block J, which also hosts the Gumusut oilfield,

and is understood to have been made in the early 2000s and contains about 800 billion cubic feet of gas

reserves. The drilling of Limbayong-2 was carried out by a consortium which includes Shell (35%),

ConocoPhillips (35%) and Petronas (30%).




Morocco: Cairn Energy and Genel Energy encounter heavy oil in Tarfaya offshore Source: Reuters / energy-pedia

Moroccan Office of Hydrocarbons and Mining (ONHYM) said Tarfaya offshore block drilling by Cairn

Energy and Genel Energy, with a depth of 2,112 meters, has faced a column of heavy-oil more complex to exploit. Cairn and Genel started the drilling on Jan. 8 at Juby Maritime-1, the field based 38 kms off the costs of the southern town of Tarfaya, and reached the final depth of 3,835 meters on March 9. 'However, the target has not shown a reservoir of good quality,' the statement, carried by the state news agency, said.

The Juby Maritime Block covers an area of 4,481 sq km and the two companies started the drilling after encouraging

3D seismic surveys. Equity interests in the Cap Juby Maritime blocks I-III licence are: Cairn 37.5% (operator); Genel Energy 37.5%; ONHYM 25% (carried through exploration).

Oil companies are stepping up exploration in Morocco, attracted by its stability relative to other parts of North Africa and encouraged by advances in geology and technology that indicate its potential for reserves offshore.

According to information on Genel Energy's web site: In January 2014, the partners on the Juby Maritime

licence spudded the JM-1 well, which is targeting the Cap Juby Prospect. The primary target of the well is a Middle Jurassic carbonate play, where prior drilling has indicated the presence of a working hydrocarbon system. The secondary target is appraisal of the existing Upper Jurassic heavy oil discovery. Drilling results are expected in the second quarter of 2014.




Caracal Energy and TransGlobe Energy announce proposed business combination Source: Transglobe Energy

Caracal Energy and TransGlobe Energy have entered into an agreement to merge the two companies by way of an exchange of shares pursuant to a plan of arrangement under the Business Corporations Act (Alberta).

Rationale for the Proposed Business Combination

The Arrangement would create one of the largest independent Africa focused oil producers, poised for strong growth in oil production and reserves from development and high impact exploration in Chad and Egypt. Based on March 14, 2014 closing prices, the merged company would have a combined market capitalization of approx. US$1.8 billion and:

• Material Onshore Oil Production - Pro forma current oil production of 25,100 bbl/d (company working

interest) and 2P reserve base of 135 MMbbl (company working interest) from majority operated assets in

Chad and Egypt and additional non-operated interests in Yemen

• Near Term Production Growth - Average 2014E production target of 31,000-34,000 bbl/d (company working

interest); ongoing appraisal and development program

• Catalyst Rich Exploration Program - Campaign of 30-42 high impact exploration wells in Chad by 2016,

targeting 70+ per cent of a total 833 MMbbl of gross risked mean prospective resources and low risk step

out exploration in the Egyptian Eastern Desert

• Strong Regional Position - Enhanced scale provides a platform for future organic and acquisition growth in

Africa, building on core operated positions in Chad and Egypt, with ready access to key infrastructure and

export markets

• Improved Financial Position - Combined business plan remains fully funded, with a pro forma cash position

of US$302 million and no net debt as at December 31, 2013, and a growing cash flow profile

'This transaction will clearly benefit both companies and their shareholders, as the enhanced scale will expedite production growth and increase cash flow,' said Gary Guidry, Caracal's President & Chief Executive Officer. 'At its core, this transaction is about greater value creation for all shareholders of the merged company. Through the combination of complementary asset bases, we will create a solid regional

platform for compounding reserves and production growth.'

Added Ross Clarkson, TransGlobe's President & Chief Executive Officer, 'Consistent with our onshore, operated, oil strategy, the combination will provide shareholders with significant organic production and reserves




growth, while providing increased country diversification. Specifically, we're pursuing additional upside of over four billion barrels of gross mean unrisked prospective resource, aggressively targeted with a fully funded drilling program. And as one of the largest independent oil producers in Africa, we will be well positioned for future value-enhancing growth.'

The merged company will benefit from an experienced Board of Directors, with Robert Hodgins as independent non-executive Chairman. Other independent board members include Carol Bell, John Bentley, Peter Dey, Ronald Royal, and Brooke Wade. It is proposed that two directors from TransGlobe, Ross Clarkson and Lloyd Herrick, will join the Caracal Board.

After completion of the transaction the combined assets and employees will operate under the Caracal name and will be led by Caracal's CEO Gary Guidry and a combination of Caracal's and TransGlobe's current executive teams. In connection with the Arrangement, Caracal is required to seek a listing for the merged company on the Toronto Stock Exchange ('TSX').

NewBase Comments :-

• Chad ranks as the tenth-largest oil reserve holder among African countries, with 1.5 billion barrels

of proven reserves as of January 1, 2013, according to the Oil and Gas Journal.

• Crude oil production in Chad was an estimated 115,000 barrels per day (bbl/d) in 2011 and 105,000

bbl/d in 2012. Almost all of this was exported via the Chad-Cameroon Pipeline.

• The China National Petroleum Corporation (CNPC) and the Chadian government jointly constructed

the 20,000 bbl/d N'Djamena refinery, and it began supplying the local market with petroleum

products in 2011. However, operations have occasionally been temporarily suspended in the past

due to price disputes and operational

issues.

• Petroleum is the only hydrocarbon

that Chad consumes. Traditional wood fuel

is the primary source of total energy

consumption in the country.

• Very few households in Chad have

access to electricity. The country has

installed electric generation capacity of 31

megawatts that is thermal-powered using

refined oil products.




Europe to find it difficult to wean itself off Russian gas Source : AFP

Europe will have trouble weaning itself off Russian natural gas, analysts say, as its faces declining

production at home and Asian competition for supplies.

Even before the current flare up of tensions with Russia over its de

facto occupation and possible annexation of Ukraine’s Crimea

peninsula, Europe has been trying to reduce its dependence on

Russian supplies.

The diversification effort has been bearing fruit: imports of Russian natural gas fell from 45.1 percent of the EU’s total to 31.9 per cent over a decade to 2012, according to data from the EU’s statistics agency, Eurostat. Europe has reduced somewhat its dependence on Russian gas, even if Gazprom remains a key actor in Europe,” said Pascale Jean, a natural gas specialist at PriceWaterhouseCoopers.

However the Russian gas giant Gazprom has made no secret it aims to claw back its market share, having built a new pipeline to Germany and a second one under construction to southern Europe. The share of Russian gas in European imports climbed last year, and its share in total consumption has remained relatively stable over the past decade at just under a quarter.

However, EU production which currently covers a third of consumption, is expected to fall by up to 20 per cent by 2020 and up to 30 per cent by 2030. “It is likely that the share of Russian natural gas in Europe will increase further in the coming years, whether we like it, or not,” said Tim Boersna, an energy specialist and Brookings Institute in Washington. British North Sea output has already begun to fall and that of the

Netherland’s is also expected to do so soon. Production in nearby suppliers like Algeria is also on the decline. Boersna said “the market will increasingly dictate that Russian natural gas supplies will fill this supply gap.”

The European gas market finds itself today at a crossroads following two unexpected events which have shaken up the energy market: the US shale gas boom and the Fukushima nuclear disaster. With Japan shutting down all its nuclear reactors, Asia’s already rising demand for natural gas has jumped, particularly for liquefied natural gas (LNG).

This has caught the attention of gas producers, in particular the Qataris, who have shifted attention from Europe to a fast-growing and more




lucrative Asian market. The terrorist attack on an Algerian gas plant last year and frequent stops in shipments via the Libyan-Italy pipeline has cast a shadow over North African supplies.

“Given the absence of a significant build-up of North African gas exports and the late emergence of additional exports from Azerbaijan, it comes down to a competition between Russia and LNG producers,” the International Energy Agency said in its latest report on the medium-term outlook for gas markets.

“Luckily for Russia, the thirst for LNG in Asia means that additional LNG supply is largely absorbed by the Pacific basin, leaving little incremental LNG supply available to Europe.” The EU has long looked to tap into Caspian Sea gas supplies, but progress has been slow.

The construction of a “southern corridor” pipeline that skirts around Russia was a major EU policy initiative, and while the project is advancing, Gazprom will beat it with the South Stream competing pipeline that is due to come online next year.

Norway, which hopes to stem or maybe even temporarily reverse its slide in production, could benefit from renewed EU efforts to diversify supplies. Having briefly become the EU’s top gas supplier in 2012, analysts say Norway could expand its market share by several points.

Recent discoveries of gas supplies in the eastern Mediterranean off Cyprus and Israel have also fuelled European diversification hopes. Such hopes are increasingly turning to the other side of the Atlantic, where the shale gas boom has turned the United States into the world’s number one producer.

Many European countries have refused to allow shale gas exploration or production due to environmental concerns over the “fracking” techniques used to recover deposits. Others have failed to find commercially exploitable deposits. However plans to export US shale gas are multiplying, even if only one LNG facility is

currently under construction. Four others are in a relatively advanced state in the permit process.

“US LNG is set to become the world’s primary swing and emergency supplier in times of crisis, which will be particularly helpful for European buyers,” said Eurasia analyst Will Pearson. The first US LNG supplies won’t arrive until 2016 at the earliest, however, and Asia will undoubtedly buy up a significant portion.

“Another point to keep in mind is that the ramp-up of US LNG exports will be slow and incremental,” he said. Europe has already been benefitting from cheap US coal, however. Cut rate gas prices in the US has displaced coal, but shipped

to Europe, the coal is still cheaper than natural gas for electricity generators.




For details contact :-

Mike Prasad

Project Manager

Hydrocarbon Information xchange

Mobile: +97150- 548 3227

Office:+97150-708 0937

Special Training Customized For Your Engineers by HCIEX

During the 14th - 16th of April Abu Dhabi will be the venue for series of technical events organized by HCIEX , said Mike Prasad , Project Manager of Hydrocarbon Information Exchange . Recent high profile pipeline leaks and ruptures have reiterated the need for establishing the integrity of the pipelines transporting natural gas, crude oil and petroleum products. With regulatory authorities issuing strict measures requiring operators to carry out risk analysis and maintain pipeline integrity especially in high consequence areas within a set time, the issue calls for strategic and immediate measures. The Reliable Pipes 2014 aims to provide operators with a strong understanding of root causes of pipe-line failure and practical methods to avoid such occurrences. The workshop probes in-depth into the different aspects of design and construction and the various phases of Pipeline Risk Management - problem detection, identification and management, and also analyses several Pipeline Integrity Manage-ment Systems, its effectiveness and application. The Reliable Pipes 2014 sets the pace for Pipeline Experts, Industry Practitioners, Solution Providers and Academia to share their cases, discuss, and bring in different perspectives to find practical solutions to the challenges at hand. The event conducts highly interactive master classes, technical presentations, case studies and group discussions to achieve this objective. Some of the topics to be discussed include: � Pipeline Integrity Management Systems � Design and Construction � Strain Based Design for HP/HT and Subsea Pipelines

� Pipeline Integrated Quality Management � Defect Assessment � Inspection - Intelligent Pigging and Data Analysis

� Corrosion Control and Management � Lifetime Extension of Ageing Pipelines � Risk Management

� Pipeline Rehabilitation




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 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 for Emarat Gas Pipeline Network Facility & gas compressor stations . ThrougManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThrougManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThrougManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed h the years , he has developed h the years , he has developed h 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. Many years were spent drafting, & compiling gas transportation , operation & mairoutes. Many years were spent drafting, & compiling gas transportation , operation & mairoutes. Many years were spent drafting, & compiling gas transportation , operation & mairoutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for ntenance agreements along with many MOUs for ntenance agreements along with many MOUs for ntenance 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 broadcasted Energy program broadcasted Energy program broadcasted Energy program broadcasted

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 17 March 2014 K. Al Awadi

New base special 17 march 2014

Economy & Finance

Transcript of New base special 17 march 2014