new base 518 special 14 january 2014

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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 . Page 1 NewBase 14 January 2015 - Issue No. 518 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE ADSW spurs UAE ‘Year of Innovation’ Saudi Gazette + NewBase ABU Dhabi Sustainability Week (ADSW) is the first major event of 2015 reinforcing the UAE’s ‘Year of Innovation’ – a federal initiative promoting innovation as a strategic pathway to strengthen the country’s economy and global competitiveness. The yearly platform, January 17-24, directly supports the federal innovation strategy by promoting technology and attracting investment in priority sectors, including renewable energy, transportation, water and education. “Abu Dhabi Sustainability Week kicks-off an important year, as our leadership embarks on an ambitious, strategic initiative to promote innovation and to stimulate economic growth,” said Dr. Sultan Ahmad Al Jaber, UAE minister of state and chairman of Masdar, Abu Dhabi’s renewable energy company. “Aimed at advancing technology, forging partnerships and driving investment, Abu Dhabi Sustainability Week complements the UAE’s efforts to embed innovation into our nation’s economy and social fabric.” ADSW unites the international players necessary to accelerate commercial solutions addressing the interconnected challenges of energy and water security, climate risk and sustainable development. “Promoting innovation – be it through novel ideas or new technology – is fundamental to preserving resources, diversifying sources of energy and mitigating climate change,” said Al Jaber. “This January, the global community will be in Abu Dhabi to forge viable, commercial solutions that enable sustainable development locally and globally.” The conference program is a fundamental factor to the event’s success. The program is designed

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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 . Page 1

NewBase 14 January 2015 - Issue No. 518 Khaled Al Awadi

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

ADSW spurs UAE ‘Year of Innovation’ Saudi Gazette + NewBase

ABU Dhabi Sustainability Week (ADSW) is the first major event of 2015 reinforcing the UAE’s ‘Year of Innovation’ – a federal initiative promoting innovation as a strategic pathway to strengthen the country’s economy and global competitiveness. The yearly platform, January 17-24, directly supports the federal innovation strategy by promoting technology and attracting investment in priority sectors, including renewable energy, transportation, water and education.

“Abu Dhabi Sustainability Week kicks-off an important year, as our leadership embarks on an ambitious, strategic initiative to promote innovation and to stimulate economic growth,” said Dr. Sultan Ahmad Al Jaber, UAE minister of state and chairman of Masdar, Abu Dhabi’s renewable energy company. “Aimed at advancing technology, forging partnerships and driving investment, Abu Dhabi Sustainability Week complements the UAE’s efforts to embed innovation into our nation’s economy and social fabric.” ADSW unites the international players necessary to accelerate commercial solutions addressing the interconnected challenges of energy and water security, climate risk and sustainable development. “Promoting innovation – be it through novel ideas or new technology – is fundamental to preserving resources, diversifying sources of energy and mitigating climate change,” said Al Jaber. “This January, the global community will be in Abu Dhabi to forge viable, commercial solutions that enable sustainable development locally and globally.” The conference program is a fundamental factor to the event’s success. The program is designed

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 . Page 2

to encourage innovative thinking, collaboration and action by focusing on timely, pressing issues affecting sustainable development. Some of the key issues highlighted this year include: the

power of partnership, technological innovation and innovative financing. The power of partnership – how working together can lead to innovative solutions – will be examined by highlighting key UAE-led projects. Two projects spotlighted include Al Reyadah – a cutting-edge carbon, capture, usage and storage (CCUS) joint partnership – and the Sustainable Bioenergy Research Consortium (SBRC), a ground-breaking bioenergy research program. Both Abu Dhabi-based projects would

not be possible without the union of cross-discipline partners. Al Reyadah combines Abu Dhabi National Oil Company’s (ADNOC) experience in the oil and gas sector with Masdar’s know-how in clean technology to deliver a commercially viable CCUS system. The program captures and sequesters industrial carbon, enhances oil recovery and delivers environmental benefits.

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 . Page 3

UAE: Nuclear Plant Reactor dome in place The National + NewBase

Construction of the UAE’s first nuclear energy plant passed a key milestone this week after workers completed building the reactor’s concrete dome. The dome is the final structural component of the 70-metre super-strong building housing the reactor, Emirates Nuclear Energy Corporation (Enec) said.

“We are proud to maintain our track record of achieving key construction milestones safely and on time,” said Mohamed Al Hammadi, the chief executive of Enec. “The RCB [reactor containment building] is a critical structure in the plant’s safety and security. The construction of this structure has involved thousands of people who have all shown their commitment to the highest standards of quality and safety at all times.”

The dome, which measures 51.4 metres across, 24 metres tall and weighs about 9,000 tonnes, took five months to build. The UAE is building four units in an area west of Abu Dhabi to generate 25 per cent of its power from nuclear energy by 2020 as it aims to diversify its energy mix to lower dependence on fossil fuels.

Enec said that construction work on the reactor was now more than 60 per cent complete and that it was on track to commence commercial operations in 2017, pending further regulatory approvals.

A second reactor, known as Unit 2, is expected to begin operations in 2018. A third and fourth reactor are scheduled to power up in 2019 and 2020. In September, Enec started to pour the first safety concrete for Unit 3.

In 2009, the UAE awarded the state-run Korea Electric Power Corporation (Kepco) the US$20 billion construction contract to build the four nuclear units.

In 2012, Enec signed a $3bn fuel contract with six companies to source uranium for 15 years, starting in 2017. Companies that may provide the uranium include France’s Areva, Russia’s Tenex, Canada’s Uranium One, the United Kingdom’s Urenco and ConverDyn of the United States.

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 . Page 4

UAE seeks more LNG from Qatar via Dolphin pipeline Bloomberg + NewBase

The United Arab Emirates, which needs natural gas to meet surging domestic demand, wants to import more fuel from Qatar through the Dolphin pipeline, Energy Minister Suhail al-Mazrouei said. The UAE also will boost imports of liquefied natural gas and develop its own deposits of high-

sulfur, or sour, gas, he said at an industry presentation in Abu Dhabi yesterday. The country’s energy subsidies will become unsustainable because these sources of fuel are more expensive than gas produced from conventional fields, al-Mazrouei said.“We expect to see a significant shift in the supply dynamics of gas” within the next 10 years, he said. The UAE needs gas to generate electricity for a

growing population and expanding energy-intensive industries such as aluminium and steel. The country is the fifth-biggest producer in the Organisation of Petroleum Exporting Countries, according to data compiled by Bloomberg, and Abu Dhabi holds most of the nation’s oil.

Development of new fields in Qatar would make more gas available for the UAE to import, al-Mazrouei said. He didn’t say if the UAE has agreed to buy additional Qatari gas. Abu Dhabi National Oil Co, a government-run producer, is “on course” to maximise its use of gas and oil reserves in the country’s largest emirate, Adnoc’s general manager Abdullah Nasser al-Suwaidi said at the same event. Abu Dhabi’s Shah sour gas project was commissioned on January 10 and began producing about 100mn standard cubic feet a day, and Adnoc expects it to reach full capacity of 600mn by year-end, al-Suwaidi told reporters. The country is also developing sour gas at the Bab field, al-Mazrouei said. Dolphin Energy Ltd supplies gas to the UAE from Qatar through an undersea pipeline. The company, 51% owned by Abu Dhabi’s Mubadala Development Co, started bringing gas to the UAE in 2007 from Qatar’s North Field, the world’s largest known gas deposit.

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 . Page 5

Oman: Medco Energy (Indonesian) looking to Expand in Oman

Indonesia’s energy firm PT Medco Energi Internasional plans to acquire new oil and gas blocks in Oman, reported news portal Bisnis.com.

"There are some blocks that we are evaluating,” company secretary of Medco Energi Internasional Imron Ghazali told the website last week.

In November last year, the company bought a majority stake in Block Oman 56. The block is located in the prolific Oman Salt Basin and is spread over an area of 5,808 square kilometers.

MedcoEnergi has been in Oman since 2006 as operator of the Karim Small Fields (KSF) Service Contract. Oman 56 is located adjacent to KSF with similarities in geology and advantage in synergy of operations.

MedcoEnergi has transformed into an integrated energy

company with business involvement in oil and gas

exploration, development and production, methanol

production, lpg production, and power generation.

Looking a head, MedcoEnergi will remain as an

integrated energy company with primary focus on oil &

gas exploration, development and production. To meet

the world’s growing energy demand, we will also enter

into other energy industries and its related business,

including renewable energy, geothermal, and fuel

distribution

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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UK N.Sea:Catcher on track for 2017 production,FPSO construction starts Cairn Energy

Cairn Energy, an independent oil and gas company, has informed that first steel has been cut for the Premier-operated Catcher FPSO unit. Cairn owns a stake in the Catcher area, located in the

UK Central North Sea. Cairn did not specify the exact date of the Catcher FPSO steel cutting ceremony but only said it had been held in the first quarter of 2015, meaning in the last two weeks.

Cairn also said that development drilling at the project is expected to start in the second half or the year, following installation of the first phase of subsea drilling templates.

Japan’s IHI is responsible for the construction of the FPSO hull, while Singapore’s Dyna-Mac will

deliver 10 FPSO modules and a flare tower. BW

Offshore, which will own the FPSO and lease it to Premier Oil, has recently reported that the construction activities started on the FPSO turret mooring system.

Cairn, which owns a 20% share in the project following a 10% interest sale to Dyas, has said that the Catcher is progressing as planned with production expected in 2017.

The Catcher field, discovered in 2010, is expected to produce 96 million barrels of oil equivalent with a peak production rate of around 50,000 barrels of oil per day.

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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Philippines: Gas2Grid announces Malolos field technical programme - still seeking partner. Source: Gas2Grid

Gas2Grid has advised that following the award of a 2 Year Technical Moratorium by the Philippine Department of Energy, it has commenced the Malolos Oil Field technical program to establish the best completion technology to fully appraise and develop the oil field. The 2 Year Technical Moratorium provides security of tenure over Service Contract 44 until the 28th January, 2017 and within that time the Company aims to demonstrate the field commerciality and apply for a 25 year production term. In conjunction with the work program, the Company has already met with selected companies regarding farming into the Service Contract 44 by funding the oil field appraisal and development. Further meetings with additional companies are planned. 2 Year Technical Moratorium – Work Commitments The 2 Year Technical Moratorium has been granted by the Philippine Department of Energy with the work commitments outlined below. The Company aims to complete this program as early as possible to achieve field commerciality by bringing forward the Year 2 program, subject to funding. Year 1 (28th January, 2015 – 27th January, 2016) – US$100,000

• Research and design a mud/hydraulics program to minimize formation damage in open hole.

• Research possible alternatives to enhance current oil production from Malolos-1 well.

• Malolos-1: implement any enhancement program warranting application in cased hole.

• Malolos-1: continue to test produce.

• Conduct new petrophysical analysis on Nuevo Malolos-1, Malubog Formation core.

• Collect Malubog Formation outcrop samples and conduct petrophyiscal analysis.

• Commence research, in association with industry experts and service contractors, on best completion type for Malubog Formation sandstone reservoirs, incorporating all available petrophysical data.

• Map in detail the Malolos surface anticline.

Year 2 (28th January, 2016 – 27th January, 2018) – US$1 million • Complete research, in association with industry experts and service contractors, on

desired completion type for Malubog Formation sandstone reservoirs incorporating all available petrophysical data.

• Finalise the open hole well design and completion program, in association with industry experts and service contractors.

• Deepen Nuevo Malolos-1 to oil bearing reservoirs, core and record modern open hole electric logs (Option: drill a new Malolos well elsewhere in oil field).

• Complete well for oil production implementing new completion technology.

• Commence oil production test to establish field commerciality.

• Apply for a 25 year production term.

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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Farmout The Company’s preference is to fund the full appraisal and development of the Malolos Oil Field by securing a farmin partner. Farmout presentations commenced before Xmas, initially targeting oil companies located in South-East Asia. The farmout efforts will be expanded over the next few months.

The Malolos Oil Field still represents an attractive investment opportunity despite the recent oil price drop and the immediate effect that it has had on the oil industry Worldwide. The Malolos Oil Field has a 20.4 million barrel “Best Estimate (P50) Contingent Resource” of good quality, low sulphur crude oil that is located onshore close to transportation in a country with excellent fiscal terms. All that point to low development and operating costs which should leave a healthy profit margin, even at the current low oil price. In comparison the projects extracting oil (or gas) from onshore shale and offshore oil and gas developments (particularly deep-water discoveries) have high development and operating costs that could be too high for the current oil sale price and are therefore becoming uneconomic. In the near term, we may see a trend of energy investment funds being redirected to onshore oil and gas developments which will benefit our search for funds for the Service Contract 44 onshore project.

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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in this publication. However, no warranty is given to the accuracy of its content . Page 9

Indonesia: KrisEnergy completes Block A Aceh acquisition Source: KrisEnergy

KrisEnergy refers to the announcement dated 1 July 2014 in relation to the acquisition of Premier Oil Sumatra (North) (which holds 41.6666% working interest in the Block A Aceh production sharing contract ('PSC')) from Premier Oil Overseas, and announces the completion of the acquisition. Approval for the change of control has been received from the Government of Indonesia and the provincial government of Aceh.

Block A Aceh is located onshore Sumatra in the semi-autonomous region of Aceh and covers an area of 1,803 sq km. It contains several gas condensate discoveries including the Alur Rambong, Alur Siwah and Julu Rayeu fields, which were approved for development in 2007. These gas condensate discoveries are expected to go into development with first gas from Alur Rambong anticipated in 2017. The block also contains the Matang gas discovery, which requires further appraisal prior to being developed via tie-back to the initial facilities, and the high-CO2 Kuala Langsa gas discovery. Richard Lorentz, Executive Director and Director Business Development, said: 'With all approvals now in place for our transaction, we are very excited to be able to progress commercialisation of Block A Aceh with our joint-venture partners. We aim for a 50:50 mix of oil to gas production in our portfolio and Block A Aceh will maintain that balance following our two oil developments in the Gulf of Thailand due on stream in 2015 and the Lengo gas field offshore East Java thereafter.' PT Medco E&P Malaka is the operator of the Block A Aceh PSC with a 41.6667% working interest and Japex Block A Ltd. holds the remaining 16.6667%.

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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Croatia LNG terminal on track after South Stream project cancelation http://www.lng.hr/en/

The Zagreb-registered company LNG Croatia LLC (LNG Croatia) is planning to build the first liquefied natural gas (LNG) import terminal in Croatia to become a strategic hub on the north of Adriatic Sea to supply the Balkans region and Eastern Europe countries up to Poland.

When President Vladimir Putin made the decision to cancel the $45 billion South Stream project to supply Russian gas to the southern Europe, he opened a giant opportunity for Croatia to trigger studies for a regional hub to import LNG and distribute it to neighboring countries.

Most of Eastern Europe countries and Balkans still depend on Russia for their gas supply, before the construction of a LNG Import Terminal on the Adriatic Sea takes a strategic dimension. In November 2014, the European Commission selected LNG Croatia Import Terminal project to be included in the list of Connecting Europe Facility (CEF) Energy 2014 program.

By this decision the EU will finance 50% of the total costs for the LNG Croatia Import Terminal projectf easibility

study.

In December 2014, LNG Croatia called for bid (CFB) potential LNG suppliers for an open season to last until May 2015.

The purpose is to pre-qualify companies interested in supplying Croatia LNG terminal with LNG up to filling up its total capacity.

LNG Croatia selected the Omisalj county in the Krk Island in the North Adriatic Sea to build its LNG import terminal.

This Krk Island location will facilitate LNG Croatia construction of the deep water harbor to receive the LNG carriers as well as the deployment of a pipeline distribution system into the Balkans along the Adriatic coast and inland.

Krk Island LNG Terminal to feed North-South Corridor and eestimated to cost $1.3 billion capital expenditure the Croatia LNG Import Terminal project should include:

- Berths for LNG carriers up to 265,000 cubic meters - Two LNG storage tanks of 180,000 cubic meters capacity each - Regasification facility with a capacity of 1 million cubic meters per hour (cm/h) of gas

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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Overall, LNG Croatia Import Terminal project should have a capacity to download and pipe in up to 6 billion cubic meter per year (bcm/y) of natural gas.

From the Krk Island, the Croatia LNG Import Terminal project will be able to distribute natural gas into the neighboring Bosnia-Herzegovina, through three gas connections, and to Bulgaria and Ukraine.

In parallel, discussions are on going between Croatia and Poland to connect the future Krk Island LNG Terminal to the Swinoujscie LNG Terminal under construction in Poland through a $1.3 billion North-South gas pipeline corridor.

Poland is depending on the Russian gas for 60% representing 10 bcm/y. On its side Croatia is consuming only 3 bcm/y out of which 2 bcm are already produced locally.

It means that the LNG Croatia Terminal could provide Poland easily with some 3 bcm/y of gas representing 30% of its Russian gas import.

In starting the front end engineering and design (FEED) in 2016, LNG Croatia may expect to start commercial operations at the Krk Island LNG Import Terminal by 2019 and supply Poland through the North-South Corridor by 2020.

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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in this publication. However, no warranty is given to the accuracy of its content . Page 12

Oil Price Drop Special Coverage

UAE E.M says oil price slump will drive out high-cost production The UAE Energy Minister Suhail Al Mazrouei said yesterday shale oil producers could not sustain output as crude dipped below $45.

Oil futures fell again in London and New York despite record Chinese oil imports, as the supply glut and bearish trader sentiment sent prices near six-year lows.

Brent slid 48 per cent last year to end at about $57 a barrel, the steepest decline since the 2008 financial crisis, because of an oil supply glut spurred by the shale oil boom in the United States, weaker demand in Asia and Europe and a strong dollar. Brent this year has fallen 22 per cent and it is down 60 per cent since last year’s peak of $115 a barrel reached in June.

Brent was trading at about $46.12 yesterday afternoon, while West Texas Intermediate fell to $44.75. The price slide is unlikely to end soon and will drive out high-cost production such as shale oil, Mr Al Mazrouei said yesterday at a forum organised by Dubai-based consultancy Gulf Intelligence.

“It’s unlikely that we’ll see a sudden rise [in oil prices], it will take some time. Is it going to be a year or a couple? I think that will depend on what we see in the next two quarters,” said the minister. “The current prices are not sustainable – not for us, but for the other producers.

UAE Energy Minister Suhail Al Mazrouei talks during the 6th Gulf Intelligence UAE

Energy Forum in Abu Dhabi on Tuesday, January 13, 2015. Kamran Jebreili / AP Photo

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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“Everyone needs to take measures, but those who are producing the most expensive oil – the rationale and the rules of the market say that they should be the first to pull or reduce their production. If the price is right for them to produce, then fine, let them produce. If the price is not

right, then they will reduce.”

He said shale oil production cannot be sustained at the current prices. The US, the world’s No 1 oil consumer, is pumping oil at a near three-decade high exceeding 9 million barrels of oil per day primarily thanks to an increase in shale production.

“Shale producers are hurting already, depending on where they produce. The producers with the best acreage can break even at $30 [a barrel] but many don’t do so

at even $100. On average, they need $76 to continue producing and investing,” said Amrita Sen, the chief analyst at London-based consultancy Energy Aspects.

Goldman Sachs said this week that $40 a barrel oil for a six-month period is needed to slow down US oil production. The oil rout continued yesterday even as China, the world’s second biggest oil consumer, reported record crude imports of 7 million bpd in December.

“In the near term, prices can continue falling as bearish sentiment is coinciding with a seasonal drop in crude demand,” said Ms Sen. “We don’t think current prices are fundamentally justified, and think they will rise towards $60.”

The oil price slide accelerated last year after Opec, the 12-member organisation that pumps more than

a third of the world’s oil, decided to roll over production at 30 million bpd despite overproduction and weaker demand in major oil importers.

Mr Al Mazrouei defended Opec’s decision, saying it was the right one to take. Meanwhile, the UAE is carrying on with projects to boost oil production capacity to 3.5 million bpd by 2017 from about 3 million bpd now. The UAE currently produces about 2.7 million bpd.

“The contracts are already completed. We cannot as a responsible oil producer and reliable supplier in the market adjust our plans every time there’s volatility in the market,” the minister said. “For us, we aspire to keep our role as a reliable supplier and will continue investing. We’ve passed through more difficult times.”

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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The oil price slump is unlikely to affect the UAE’s plans to award concessions to international oil companies to run its onshore oil fields operated by Abu Dhabi Company for Onshore Oil Operations (Adco).

Abu Dhabi National Oil Company (Adnoc), Adco’s parent company, took 100 per cent ownership of the onshore fields when the concessions expired in January last year after 75 years. Currently Adnoc and the Supreme Petroleum Council are evaluating bids from international companies.

These companies are unlikely to lose interest in the concessions because of the low oil prices, the minister said. “All of those bidding are on a long-term relationship that will last 30 years or more. They’re not going to change their mind every time we have a glut in the market,” the minister said. “I don’t think it’s going to impact it in any shape or form.”

Oil heads to a 6-year low, China’s economic data pares stock losses Oman Observer + AFP+NewBase

Energy stocks took a hit in Asian trade yesterday as oil prices fell towards six-year lows, with warnings of further volatility ahead, but some rare upbeat Chinese trade data boosted Hong Kong and Shanghai.

Crude was dealt another blow yesterday when key Opec member the United Arab Emirates said the cartel could not stop world prices plunging and called for a cut in US shale oil output. Tokyo fell 0.64 per cent, or 110.02 points, to finish at 17,087.71, although it pared initial losses as the yen weakened in afternoon trade. Sydney fell 0.33 per cent, or 18.01 points, to 5,404.7 and Seoul closed 0.20 per cent lower, giving back 3.81 points to 1,917.14. However, Hong Kong added 0.79 per cent, or 189.51 points, to 24,215.97 and Shanghai rose 0.19 per cent, or 5.98 points, to 3,235.30. Crude sank again on Monday after Wall Street investment titan Goldman Sachs slashed its price outlook for the commodity, adding to anxiety about a global oversupply, weak demand and soft

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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growth in the key Chinese and European markets.The warning sent US shares tumbling, with the Dow down 0.54 per cent, the S&P 500 off 0.81 per cent and the Nasdaq tumbling 0.84 per cent. “There is no escaping crude’s effect on global markets,” Evan Lucas, a markets strategist in Melbourne at IG Ltd, said, according to Bloomberg News. “This will see first-half volatility ramping up throughout the globe.” Prices continued their descent on Tuesday, after a mauling in the previous session. Brent crude for February delivery fell $1.93 to $45.50 a barrel — around its lowest point since April 2009. On Monday it had plunged more than five per cent to end below $50. US benchmark West Texas Intermediate shed $1.55 cents to $44.52 — its weakest levels since March 2009 — a day after losing 4.7 per cent. Selling pressure increased when UAE Energy Minister Suhail al Mazrouei the Gulf Intelligence UAE Energy Forum in Abu Dhabi: “We cannot continue to be protecting a certain price. “We have seen the oversupply, coming primarily from shale oil, and that needed to be corrected.” Prices have been falling since June but the pace of the slide accelerated in November when the Organisation of the Petroleum Exporting Countries (Opec) decided to maintain its output.

That came as a huge supply of newly tapped oil from the US has come online. The weakness filtered through to Asian energy companies. In Sydney BHP Billiton ended down 1.89 per cent and Woodside Petroleum fell 1.73 per cent by the close, while CNOOC in Hong Kong was 1.69 per cent lower. Tokyo-listed Inpex shed

2.59 per cent and Showa Shell gave up 2.76 per cent. Shanghai and Hong Kong reversed initial losses following the release of Chinese trade figures. The General Administration of Customs said exports rose 9.7 per cent year-on-year in December, while imports fell 2.4 per cent. That resulted in an almost doubling of the country’s trade surplus during the month. The export figure exceeded the median forecast of six per cent by 40 economists in a Bloomberg survey, while the fall in imports was less severe than their prediction of a 6.2 per cent decline. On currency markets the yen eased against the euro and dollar after a morning rally dissipated. The dollar fetched 118.33 yen compared to 118.27 yen in New York, while the euro was at 140.05 yen against 139.98 yen. The single currency also bought $1.1836, compared with $1.1834 in US trade. Gold was $1,241.54 an ounce, compared with $1,222.03 on Friday.

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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in this publication. However, no warranty is given to the accuracy of its content . Page 16

Saudi Oil Minister Holds Talks With US Energy Deputy By Reuters+ NewBae

They discussed global oil markets and cooperation on energy a nd environmental issues,

climate change and solar energy use.

Saudi Oil Minister Ali al-Naimi met U.S. Deputy Energy Secretary Elizabeth Sherwood-Randall on Tuesday in Riyadh where they discussed oil markets, the official Saudi Press Agency (SPA) reported.

SPA gave no specific details about the meeting in a brief statement but said the officials looked into cooperation on energy and environmental issues, climate change, solar energy use and mutual investments.

A U.S. energy department spokesman said in addition to those areas, the two officials discussed global oil markets. The trip was Sherwood-Randall’s first as deputy energy secretary.

“She chose to make her first visit to Saudi Arabia given our strategic partnership and our shared interest in continuing the close cooperation between our two governments on a range of energy issues,” the energy department spokesperson said.

U.S. crude hit a near six-year low of $44.20 on Tuesday.

Venezuela’s President Nicolas Maduro is in Algeria on a diplomatic push to persuade reluctant fellow members of OPEC to prop up a sinking market by cutting output.

Saudi Arabia, OPEC’s dominant member state and the world’s biggest oil exporter, has repeatedly said the group will not cut production.

On Tuesday, United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui stood by OPEC’s decision to keep production unchanged.

Mazroui showed no sign of backing down from OPEC’s insistence that other producers, particularly the U.S. shale oil drillers which it blames for oversupplying the market, reduce their output.

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Khaled Al Awadi is a UAE National with a total of 25 years of experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designing & constructing of gas pipelines, gas metering &

regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels.

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