New base special 23 march 2014

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NewBase 20 March 2014 Khaled Al Awadi

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Dolphin Energy sets new environment and safety milestone www. Gulftimes.com

Dolphin Energy has set new milestones in safety requirements and environmental standards after reaching 40mn man-hours without any lost time injury from February 2009 to December 2013, a company official announced yesterday.

The company’s upstream and projects division has registered a 352% reduction in the lost time incident rate, an inventory of incidents on lost time due to injury or illness per million hours worked since operations began, said Dolphin Energy general manager Adel Ahmed al-Buainain. He also said Dolphin Energy was able to maintain its compliance record on environmental regulations and requirements “and achieved a flaring rate lower than the target set by

Qatar’s Ministry of Environment”. “We continue to implement best-in-class HSE (health, safety and environment) management systems and operational safety practices, and reaching these milestones is a great achievement for the organisation,” he added.

Al-Buainain said Dolphin Energy reduced greenhouse gas emissions by 13% from 2010 to 2013. In the same period, it also registered a 44% reduction in flaring due to initiatives like the installation of infrared cameras, which has helped improve the accuracy of flare flame monitoring.

“We have a robust safety culture and an unstinting commitment to minimising the environmental impacts as observed and practised by our employees and contractors at all times,” said al-Buainain, who congratulated the employees and contractors involved in the recent achievements.

He stressed that “achieving excellence across health, safety and the environment is a key operational objective for Dolphin Energy. The company has developed a set of key performance indicators to measure the continuous effort to safeguard people, minimise any impacts on the environment as well as the protection of its assets”.

Al-Buainain noted that the company created safety passports for employees at Dolphin Energy’s gas processing plant in Ras Laffan as part of a campaign to encourage all employees to “stop and think” before working.




Mexican state oil producer Pemex seeks Arabian Gulf partners April Yee , www.thenational.ae/

Mexico’s Pemex is courting potential partners in the Arabian Gulf as the nation’s oil industry opens up to private investment for the first time in 75 years.

Officials from the state oil company travelled to the capital this week to meet Abu Dhabi’s Mubadala and International Petroleum Investment Company (Ipic) as they seek joint venture partners to upgrade outdated petrochemical plants and explore challenging shale and deepwater fields. As much as 115 billion barrels of oil are estimated to remain for the tapping – more than twice the volume Mexico has pumped in a century.

“We have plenty of resources in Mexico,” said Mario Beauregard, the chief financial officer. “Pemex has always been talking with international oil companies, but now it’s completely different – now we are able to attract oil companies to exploit these resources.”

Service contracts that pay a per barrel fee were allowed under the nationalised structure. But the absence of production-sharing contracts – which allows companies to book reserves – has handicapped the development of Mexico’s side of the Gulf of Mexico and shale formations that are believed to extend in a continuous line from Texas’s Eagle Ford.

Should Mexico’s reform succeed, it could not only unlock some of the world’s largest untapped hydrocarbon resources but also boost the entire economy by making more fuel available to domestic industry. Today the world’s tenth top oil producer imports a third of its petrol because of limited refining capacity. Pemex hopes it can tap Nova Chemicals or Cepsa, both owned by Ipic, to help revitalise the downstream sector.

The reform is expected to double annual investment in the nation’s oil sector to US$60 billion a year, from the $27.7bn today that is exclusively invested by Pemex. Its five-year target is to raise output by 500,000 barrels per day to 3 million; private investment would help raise that figure to 3.5 million, said Mr Beauregard. The company also plans to tap sukuk markets for the first time in the range of $500 million to $1bn.




The oil and gas reform is a historic moment for a nation that was ranked the world’s second top oil producer a decade before oil was discovered in the Arabian Gulf. Foreign companies controlled 90 per cent of the industry before Mexico banned private investment in the oil sector in 1938. It created Petroleos Mexicanos soon after.

Change has been swift under the current president Enrique Pena Nieto. In December lawmakers lifted the ban from the constitution, and next month they are expected to pass a set of laws governing investment. A sovereign wealth fund and an environmental agency are also due to be launched.

Pemex said it would structure joint ventures on a case-by-case basis, but would probably maintain a higher stake in the easy-to-drill shallow water, where it costs about $20 to produce a barrel of oil, than in the more challenging and costly deepwater and shale. Mexican companies that have operated on Texan shale are ready to bring their skills to Mexico, said Mr Beauregard.

NewBase comments/ research :

Carlos Sole, Baker Botts partner and co-chair of the law firm’s Latin America practice, discussed how the reform will

allow companies outside Pemex to book reserves for the value of the contracts for accounting purposes. In addition,

outside companies are to be allowed to enter into contracts and to get paid in actual production of oil and gas.

“This is important because you can take that production and you can trade it, you can sell it and you control its ultimate destination and the ultimate price vs. having the production and worrying about the price Pemex is going to pay you,” Sole said. Three distinct Mexican agencies must coordinate efforts for the reform implement, he said. “The Ministry of Financial will be responsible for economic terms while the National Hydrocarbon Agency will be responsible for the actual bidding processes,” Sole said. “The Ministry of Energy is the entity that will provide the technical support.”

The reform calls for a “Round Zero” in which Pemex will be allowed to choose initial fields in which it desires to maintain existing interests or develop in the future. The constitutional amendments also call for creation of a new regulatory agency, the National Center of Natural Gas Control, to supervise operation of the national pipeline network currently operated by Pemex. In addition, the reform calls for the creation of a wholesale power generation market with the National Energy Control Center acting as the system operator independently of the CFE and for creation of a new regulatory agency, the National Agency for Industrial Safety and Environmental Protection, which will be independent of the Ministry of Environment and Natural Resources.

The Mexican Congress has 12 months to develop energy-related environmental regulations and to establish the National Center of Natural Gas Control and the National Energy Control Center. Regarding downstream, the Ministry of Energy will issue permits for processing and refining. The reform calls for a public trust, the Mexican Petroleum Fund for Stabilization and Development, to be administered by Mexico’s central bank, subject to transparency rules to be developed in secondary legislation. The fund is to administer, invest, and distribute oil revenues effective in 2015.




Mexico oil laws may be delayed beyond April, PAN senator says ERIC MARTIN , http://www.worldoil.com

MEXICO CITY (Bloomberg) -- Approval of bills to implement Mexico’s constitutional oil changes may be delayed beyond the current congressional session that ends April 30, according to a National Action Party senator on the energy committee.

Mexican lawmakers may need extra weeks to pass the so-called secondary laws, which have yet to be presented, Senator Jorge Luis Lavalle said in a phone interview. An extra session in May would be one option for achieving passage, he said.

“There’s a possibility that the time period gets lengthened,” Lavalle said. “What we want is quality, and if this requires more time, it’s worth waiting a few more weeks to have the details right.”

Lavalle’s party, known as PAN, is the second-largest in each house of Mexico’s congress. Its members voted last year with President Enrique Pena Nieto’s Institutional Revolutionary Party, or PRI, to open Mexico’s state-controlled oil industry to private drilling for the first time since 1938.

Lavalle said PAN senators and lower house representatives are working on proposals for secondary laws. While he doesn’t expect the energy bills to be presented next week, he said he still hopes lawmakers can approve the legislation in the session’s six remaining weeks.

Debate on telecommunications secondary legislation may come sooner. Lavalle, who’s also a member of the Senate communications and transportation committee, said he expects the Pena Nieto administration to present those bills early next week. Lawmakers already missed a December deadline and a February goal to approve the rules.

Lavalle said the Senate is also likely on March 25 to name members for a special committee to investigate Oceanografia SA. Mexico took control of the oil services provider on Feb. 28 after Citigroup Inc. alleged a $400 million loan fraud.

About Mexico Oil : EIA - says :

EIA expects Mexican oil production to continue declining over the next decade, assuming no dramatic changes in policy or technology. Recent editions of the Short-Term Energy Outlook forecast that Mexican oil production will decrease by 50,000-100,000 bbl/d between 2012 and 2013, a slightly steeper rate of decline than that experienced for most of 2012.

Although the shortage of investment in Mexico is expected to

lead to a mid-term decline, Mexico has the potential

resources to support a long-term recovery in total production,

primarily in the Gulf of Mexico. The reference case of EIA's

2011 edition of the International Energy Outlook projected

that total Mexican liquid fuels would sink to approximately 1.4

million bbl/d in 2025, before increasing slowly to 1.7 million

bbl/d. The production rebound depends entirely on the

development of resources in the deepwater Gulf of Mexico

and the extent and timing of a recovery will depend in part on

the level of economic access granted to foreign investors and

operators. PEMEX does not currently have the technical

capability or financial means to develop potential deepwater

projects in the Gulf of Mexico or shale oil deposits in the

north.




Shell and South Gas at design phase on first Iraq LNG Plant http://www.2b1stconsulting.com/shell-and-south-gas-at-design-phase-on-first-iraq-lng-plant/

Basra Gas Company (BGC), the joint venture between the local South Gas Company (South Gas), Royal Dutch Shell (Shell) from The Netherlands and Mitsubishi Corporation (Mitsubishi) from Japan, awarded the front end engineering and design (FEED) contract to the Italian engineering company, Saipem for the construction of the first liquefied natural gas (LNG) export terminal to be located in the south of Iraq.

In May 2013, Iraq Government finally approved the creation of BGC joint venture to support the world largest program to reduce flared gas. Iraq counts the 10th largest reserves of conventional gas in the world.

From historical reasons, all the gas produced in Iraq is associated to the crude oil production and because of the lack of infrastructures after the two consecutive wars, a significant part of this associated gas is just flared as to facilitate the vital crude oil production. Only the Basra region is producing 1 billion cubic feet per day (cf/d) of associated gas out of which 70% are just flared.

The consequences of such quantities of flared gas on the environment and the Iraq economy is no longer affordable while this country is currently importing liquefied petroleum gas (LPG). With a $17 billion capital expenditure program initiated in 2012, South Gas, Shell and Mitsubishi have launched series of projects to revamp existing infrastructures, gather the associated gas flared in oil production fields.

To export LNG to stop flaring gas

In priority BGC is targeting three giant fields in the south of Iraq, Rumaila, West Qurna-1 and Zubair. These fields on their own generate 700 million cf/d of gas being flared. In this context South Gas, Shell and Mitsubishi are planning series of central processing facilities (CPF) that should have a capacity of 2 billion cf/d of gas.

These gas plants will produce natural gas and condensate in quantity enough to meet the demand on the domestic market and to export. Of course the Iraq Authorities intend to give priority to the local market in order to develop the local economy through power generation and petrochemical industries.

But these downstream activities may take time to be developed as depending on number of other parameters than just capital expenditure. Therefore the export of any available gas through an LNG terminal would provide Iraq with net resources while its saves gas flaring practices in the meantime the downstream sector should be ramped up.

At this stage, BGC is considering the Basra Gas LNG project to have a capacity at least of 4.5 million tonne per year (t/y) of LNG. In this context, Shell, Mitsubishi and South Gas are moving ahead through their joint venture Basra Gas in awarding the FEED contract to Saipem for this first Iraq LNG plant in order BGC to stop flaring associated gas in the Basra region by 2017.




Saudi Electricity Co gets $13.2bn gov't loan By Reuters

State-owned power utility Saudi Electricity Co has been granted an interest-free loan of SR49.4 billion ($13.2 billion) from the government to help fund its power generation projects, the company has said.

The company said the loan, granted by a royal decree that was received on Thursday, would be disbursed after talks with the finance ministry. It did not provide further details.

SEC head Ziyad Alshiha said on Tuesday, in a speech reported by state media, that his company planned to spend SR622 billion between now and 2023, adding 40,000 megawatts of installed generating capacity and expanding transmission and distribution networks.

He added that power usage in Saudi Arabia had risen by around 7 to 8 percent a year over the last decade and would continue to rise. While growing rapidly on an annual basis, power demand fluctuates wildly throughout the year, with demand in the summer - when air conditioning is extensively used to combat the intense heat - much higher than in the cooler, winter months.

It is not the first time that the government has allocated a huge sum to SEC to help fund its expansion needs; in June 2011, Saudi Arabia's cabinet approved a 25-year, interest-free loan to the company of SR51.1 billion.




Morocco: Longreach Oil and Gas commences drilling on Kamar-1 well Source: Longreach Oil and Gas

Longreach Oil and Gas, an independent oil and gas company focused on Morocco, has announced that the onshore drilling of the Kamar-1 well on the Company's operated Sidi Moktar exploration licence area in Morocco has now commenced, using the Saipem Drillmec Mas 7000 rig.

.

The Kamar-1 well has a planned Total Depth of 3,500m and operations are anticipated to take approx. 70

days. The Kamar Prospect is targeting a Lower Liassic reservoir and Triassic clastic reservoirs. Longreach is

the operator with a 50% interest in the exploration license at the Sidi Moktar onshore license area,

alongside its partners ONHYM and MPE, each with a 25% carried interest




Pakistan: Jura Energy's Haleema-1 well disappoints Source: Jura Energy

Jura Energy has announced that the Haleema-1 well in the Badin IV South block was drilled to the total depth of 1,849 meters. The target sands within the Lower Goru were encountered close to prognosis. The open hole wireline logging of the well was completed on March 18, 2014 and based on the interpretation of logs, the formations were found to be water bearing. Consequently, the well will be plugged and abandoned without testing.

The drilling rig will be released on March 21, 2014.

Jura holds a 27.5% working interest in the Badin IV South block, which is operated by Petroleum Exploration (Private) Limited.

Jura holds interests in nine concessions onshore Pakistan - including Badin IV South




Oman Oil owned Oxea Expand Texas plant Written by Oman Observer in Business

In a move to better serve its customers in North and Latin America, the global chemical company Oxea

(wholly owned by Oman Oil Company SAOC) has started basic engineering for a 2-Ethylhexanol (2-EH)

and a Propanol unit at its world-scale production plant at Bay City, Texas. Both units are scheduled to come

on stream in late 2016. Key elements of the basic engineering work will also be utilised for the construction

of Oxea’s future Asian Oxo chemicals platform in Duqm, Oman. 2-EH is used in the production of

acrylates, nitrates, acids and plasticizers, and serves, among others, as a solvent in the paint and coatings

industries. Propanol is used to manufacture products such as cosmetics and pharmaceuticals, printing inks,

coatings and adhesives.

The new units will further add to Oxea’s most recent capacity expansion of the Bay City plant, which will

increase current output of Butanol and Propanol by 25 per cent. This additional volume is planned to come

on line in the second half of 2014. “Oxea is a leading merchant supplier of Oxo products such as alcohols,

aldehydes, and acids. We continue to significantly invest into our production platforms to support the

growth of our customers and meet the rising demands of the markets. Once online, our customers of 2-EH in

the Americas will be able to benefit from our enhanced delivery capability for this important chemical,” said

Miguel Mantas, Member of Oxea’s Executive Board and responsible for Marketing and Sales. “We also

continue to invest in Propanol to support our customers’ growth,” he added.

“The new facilities for 2-EH and Propanol in North America not only support our strategy of growing the

business and enhancing the efficiency of our operations. It also emphasises our confidence in the

competitiveness of the US petrochemical industry and reinforces our commitment to the North and Latin

American markets,” commented Dr Martina Flöel, spokesperson for the Oxea Executive Board, who is also

responsible for Production and Technology. Oxea is a global manufacturer of oxo intermediates and oxo

derivatives, such as alcohols, polyols, carboxylic acids, specialty esters and amines.




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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 Khaled Al Awadi is a UAE National with a total of 24 Khaled Al Awadi is a UAE National with a total of 24 Khaled Al Awadi is a UAE National with a total of 24

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NewBase 20 March 2014 K. Al Awadi

New base special 23 march 2014

Economy & Finance

Transcript of New base special 23 march 2014