new base special 04 february 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 04 February 2014 Khaled Al Awadi

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Rex International claims oil discovery in second exploration well in Masirah Oman

http://www.upstreamonline.com/epaper/article1351196.ece

Rex International Holding, one of the largest companies listed on the Catalist board, said that Masirah Oil today announced that hydrocarbons were discovered in several formations with good oil sample extracted in the second exploration well in Block 50 Oman to its final depth of more

than 3,000 metres into the Cambrian formation.

Rex International Holding holds an indirect 65% stake in Lime while Hibiscus Petroleum Berhad indirectly holds the remaining 35% stake. Lime holds a 64% stake in Masirah while PETROCI, the National Oil Company of the Ivory Coast, has a 36% participating interest in Masirah. Masirah holds 100% of the Block 50 Oman concession.

Dan Broström, Executive Chairman of Rex International Holding, said, “The oil discovery in the second exploration well is further testament to the accuracy of our proprietary

direct hydrocarbon indicator, Rex Virtual Drilling; this time in our very own concession. The recent entry of oil majors such as France’s Total S.A. to Oman’s offshore areas indicates their recognition of the potential of finding crude reserves in the region and gives a vote of confidence to the findings of Rex Virtual Drilling.

In late January 2014, we have been awarded stakes in five more concessions which we have




scanned using Rex Virtual Drilling in Norway. We will continue to actively build our portfolio in different geographies, leveraging on Rex Virtual Drilling’s technological efficacy and its time and cost efficiency.”

Hans Lidgren, Chairman of Masirah, said, “This discovery confirms the high quality and value of the Oman asset. We look forward to a continued fruitful co-operation with the Ministry of Oil and Gas in Oman for many more years to come, and we congratulate our shareholders Hibiscus Petroleum Berhad in Malaysia, responsible for the drilling campaign, PETROCI the National Oil Company of Côte D`Ivoire and Rex International Holding Ltd in Singapore, responsible for the use of Rex Virtual Drilling technology, to a successful venture.”

The prowess of Rex Virtual Drilling had previously been confirmed by many blind and live tests with an unprecedented success rate of more than 85%. The game-changing technology allows the company to identify liquids such as oil, condensate gas and water in the ground from analysis of seismic data. This approach is fundamentally different from the common industry practice of looking for geological structures from seismic data analysis and making probability estimates of finding oil. Based on its ability to directly locate hydrocarbons, Rex Virtual Drilling can achieve its unique success rate of more than 50% in exploratory drilling, compared to the global industry average chance of success of 10-15%.

Kuala Lumpur: Hibiscus Petroleum has begun drilling an exploration well in Masirah North North #1 (MNN#1), located

in the Block 50 Oman concession. This is part of a 2-well drilling programme in the concession.

The prospect MNN #1, which is about 1,000 m in depth, was selected for drilling after in-depth technical evaluation and

verification using the proprietary Rex Virtual Drilling technology, in addition to confirmations provided via

conventional methodologies.

The prospect is located in the northern area of the Block 50 concession which is about 17,000 sq km in size.

The well is being drilled using the independent leg cantilever jack-up drilling rig Aban VII.




Dubai launches the first ESCO's Regulatory Framework in the Middle East Emirates News Agency, WAM

Dubai today launched the regulatory framework of energy service companies - the first of its kind in the Middle East - by the Regulatory and Supervisory Bureau for Electricity and Water Sector.

Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of Energy (DSCE) and Managing Director and CEO of Dubai Electricity and Water Authority (DEWA), stated that due to the initiatives and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and in line with the strategies of the Government Of Dubai, we support partnerships and innovation in energy sector to reach the best global standards in terms of efficiency of use, demand side

management and diversification of energy resources, DEWA made several achievements that promote transformation to green economy in the Emirate of Dubai. These initiatives aimed to contribute achieving the objectives of the UAE Vision 2021 under the umbrella of the Dubai Supreme Council of Energy, chaired by HH Sheikh Ahmed bin Saeed Al Maktoum, to push forward the march of sustainable development and make Dubai a global model to follow in the fields of energy security and efficiency. He gave his speech on the occasion of launching the regulatory framework of energy service companies - the first of its kind in the Middle East - by the Regulatory and Supervisory Bureau for Electricity and Water Sector. –

About RSB : The RSB was established by Executive Council

Resolution Number 2 of 2010. The RSB’s vision

is to become a leading example of regulatory

practice in the Gulf region and beyond and

our mission is to support Dubai’s economic,

social and environmental objectives through

development of an effective, independent and

transparent regulatory regime.

In line with Dubai’s strategy of diversifying its electricity generation fuel mix, Law No 6 of 2011 establishes a framework for private sector participation in the water and electricity sector. Dubai has set ambitious targets to improve the efficiency of energy use in the emirate, aiming for a 30% improvement by 2030. ESCOs, or Energy Service Companies, are seen as a potentially valuable way of delivering energy savings. Dubai’s energy strategy aims to diversify the Emirate’s electricity generation mix to include 5% renewable energy by 2030 .




Chevron GE Technology Alliance Created http://www.offshoreenergytoday.com/

Chevron Energy Technology Company and GE Oil & Gas announced today the creation of the

Chevron GE Technology Alliance, which will develop and commercialize valuable technologies

to solve critical needs for the oil and gas industry.

The Alliance builds upon a current collaboration on flow analysis technology for oil and gas wells. It will leverage research and development from GE’s newest Global Research Center, the first dedicated to oil and gas technology.

“GE brings its leading manufacturing capabilities,

worldwide marketing, distribution, and extensive R&D

capabilities not only for oil and gas, but also other business sectors to this alliance,” said Paul Siegele, president of Chevron Energy Technology Company and chief technology officer. “Together, we hope to

bring impactful new technologies to the industry.”

“Chevron’s deep understanding of the oil and gas industry, combined with GE’s long tradition of

technology development and close collaboration with strategic partners, will uniquely position this new

alliance to address the industry’s technology needs,” said Lorenzo Simonelli, president and CEO, GE Oil & Gas. “The solutions developed by this alliance will take on even more industry significance given

Chevron’s proven leadership in being first to field-test and deploy new technology breakthroughs.”

This partnership builds upon an ongoing collaboration between Chevron and GE developing the GE Safire™ flow meter, now being tested and deployed on Chevron land-based well production lines in the western U.S. In addition to the flow metering collaboration, which is being conducted with the Measurement & Control business within GE Oil & Gas, the Alliance is also managing a coatings project and will be taking on additional high-value projects in the near future.

The Alliance provides a mechanism for commercializing early stage technologies from Chevron, GE or other technology partnerships. For example, GE flow meter products will be developed incorporating the Swept Frequency Acoustic Interferometry (SFAI) metering technology incubated in an alliance between Chevron and Los Alamos National Laboratory.

“Los Alamos develops unique technologies and these can have powerful applications for U.S. industry,” said Duncan McBranch, chief technology officer for Los Alamos National Laboratory. “Strategic

partnerships with industry allow us to accelerate breakthrough innovation in these areas. As the alliance

demonstrates, national laboratories can serve an important role in connecting different industry partners to

strengthen the U.S. innovation landscape.”




Billions needed to fund deforestation prevention plan -report By:Marcelo Teixeira; Editing by Eric Walsh (Reuters) –

Donor nations, rainforest-rich countries and multilateral institutions will have to spend tens of billions of dollars in the next few years to ensure that nations undergoing deforestation will have incentives to halt the practice, a report released on Monday said.

Without the money to buy forest-based emissions reductions, the mechanism known as REDD+ (Reducing Emissions from Deforestation and Degradation) will be largely undermined, restricting incentives to keep trees standing, it said. Deforestation is a major producer of heat-trapping gases in the world, accounting for around 15 percent of global emissions.

Brazil, Indonesia and Nigeria are among the largest emitters of carbon dioxide from deforestation. REDD is the main program to combat forest destruction. It is being evaluated at the United Nations convention on climate change and will be part of the next global deal on climate, due to be signed next year.

But since that agreement take effect only in 2020, demand for forest-based emissions reductions would for a while be limited to companies looking to neutralize their emissions and a few carbon funds. Compliance markets, such as the EU's Emissions Trading System, do not accept forest-based offsets.

See this & see that

See this & see that




"There is currently no source of demand that will pay for medium to long-term emission reductions from REDD+ in the period between 2015 and 2020," says the report produced by the Global Canopy Programme, the Amazon Environmental Research Institute, Fauna & Flora International, and the United Nations Environment Program.

"This problem seriously threatens the successful implementation of REDD+, because without interim demand there will be little or no incentive for forest countries to participate and redirect resources towards REDD+, or for the private sector to invest," it said.

EXCESS SUPPLY

The authors of the study ran some calculations using a European Union proposal for a 50 percent cut in global deforestation by 2020. Hypothetically, if that target were to be achieved, the market for emissions reductions from avoided deforestation would become heavily oversupplied.

The report estimates, assuming acceptance of the 50 percent target, that supply of forest-based emissions reductions could be up to 39 times greater than demand in the 2015-2020 period. That would be equivalent to a shortfall of up to 48 billion in transaction volumes, assuming a carbon price of $5 per tonne of CO2.

The report says the intervention would use donor country government capital to purchase REDD emissions reductions. It would also set a floor price for REDD credits to reduce market uncertainty and help lure the private sector to invest in the mechanism.

It cites initiatives in other sectors that were successful, such as policies to stimulate renewable energy when a price for the energy was guaranteed by a government at a certain level, providing predictability for investment.




Russia's Gazprom eyes expansion from Eurasia to Tanzania http://voiceofrussia.com/news/

Gazprom is expanding the geography of its projects abroad. The Russian gas giant reports that they are currently evaluatin the prospects of work in Tanzania. If a positive decision is made, this will be Gazprom’s first project in East Africa.

The Tanzanian gas industry began its active development only recently. Nevertheless, the country has already opened its doors to such leaders of the world oil and gas sector as Exxon Mobil, Statoil, Shell and Petrobras. Tanzania’s prospective gas resources are about 2trln cubic metres. Western companies are planning to build a plant manufacturing liquefied natural gas with a capacity of 10mln tons a year. Tanzania has a really large export potential due to both its great gas

resources and a favourable geographic position. Leading analyst of the Institute of Energy and Finances Ivan Bagramov comments: “Most likely, one or even a few plants manufacturing liquefied gas will be built in Tanzania. The current orientation is towards the Asian market, so Gazprom will become very close to the Indian market which is potentially very capacious.” In addition, the Tanzanian market itself is of great interest. The main source of energy in the country is wood and practically all oil is imported. Nevertheless, considering Tanzania’s potential oil and gas resources, its government intends to build a new gas-based economy with the help of attracting foreign investment. Even though the extraction industry is only beginning to develop in the country, international investors have already appreciated the potential. Thus, China alone intends to invest up to $10bln in the Tanzanian economy in the next few years. One of the projects involves building a gas pipeline worth $1bln 200mln. This pipeline is to connect gas fields in the south of the country with the port of Tanzania’s largest city of Dar es Salaam. On the other hand, if Gazprom finally decides to secure a footing in Tanzania, it can also make a significant investment, in the opinion of the chief of the Analytical Research Department of the University Capital investment group Dmitry Alexandrov. “The minimum that we can rely on is between $1bln and $1,5bln but in the case of Gazprom participating in the construction of a liquefied gas terminal the cost of the project may grow to $10bln. Naturally, the investment will be extended over a long period of time. Large investments are not likely to begin before 2016- 2017.” Gazprom is first of all interested in gas fields in Tanzania’s shelf. The country’s government has put out to tender licenses for 7 blocks in the deep-water shelf. The application period expires in the middle of May. Follow up to East Africa Oil & Gas :- ( Good move from Russia , being late is better than never ) By NewBase auditorial :- Refence from www.eia.gov

Emerging East Africa Energy

Although oil and natural gas exploration has been going on for decades in various East African countries, there has been limited success until recently. In the past there were doubts about the amount of recoverable resources in the region, along with regional and civil conflicts that presented challenges and risks to foreign companies. Consequently, exploration activities in East Africa have evolved at a much slower pace relative to other African regions. However, the pace of exploration




activity has recently picked up after foreign oil and gas companies made a series of sizable discoveries in several East African countries.

This new regional analysis covers emerging developments in the oil and gas sectors in five East African countries: Mozambique, Tanzania, Uganda, Kenya, and Madagascar. The larger area that EIA considers as East Africa (see Africa by region map) includes 21 countries. In this region, almost all of the oil production comes from Sudan and South Sudan, which are not covered in this report because they are mature oil producers.

Among the countries with emerging oil and gas developments, Mozambique, Tanzania, Uganda, and Madagascar have shown the most progress toward commercial development of newly discovered resources

in recent years. Uganda and Madagascar will most likely be the next new oil producers on the continent. Mozambique will probably be the first country in East Africa to develop the capability to export liquefied natural gas (LNG), possibly followed by Tanzania.

Although progress toward commercial development of hydrocarbon resources in Kenya has been modest, the country plays a vital role in the region as an oil transit hub, particularly for oil products coming into the region. Kenya is planning to expand its role by embarking on a multi-million dollar investment to increase its midstream and downstream capacity.

Currently, oil and gas production and proved reserves are limited in East Africa. In comparison to other regions on the continent, East Africa produced the least amount of oil in 2012, was the second smallest gas producer in 2011, held the second lowest level of proved oil and gas reserves as of January 1, 2013, and had the second lowest crude oil refinery capacity in 2012, given the latest available estimates.

Almost all of East Africa's oil production derives from Sudan and South Sudan, which was substantially curtailed in 2012 because South Sudan shut in all of its production for almost the entire year. Although Sudan and South Sudan are important energy producers in the region, they are not covered in this report because they are mature oil producers, rather than emerging exploration and development areas.

In 2012, total oil production in East Africa, other than Sudan and South Sudan, was less than 1,000 barrels per day (bbl/d), all of which was biofuels production from various countries. Also, with the exception of Sudan and South Sudan, there are no crude oil producers in the region, and only two countries held proved oil reserves as of January 1, 2013: Uganda (2.5 billion barrels) and Ethiopia (430 million barrels). East Africa holds 8 percent of the continent's total crude oil refinery capacity, which is located in Sudan, Kenya,




Zambia, Tanzania, and Eritrea. Mozambique and Tanzania are the only natural gas producers, with an output of 135 billion cubic feet (Bcf) and 30 Bcf of dry natural gas in 2011, respectively. Proved natural gas reserves are held in Mozambique, Sudan and South Sudan, Tanzania, Rwanda, Ethiopia, Uganda, and Somalia.

Further details will contenue in tomorrow issue :

Happy reading of today’s issue ……

Please join me on 4th of March in this event :-




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 TOil & Gas sector. Currently working as TOil & Gas sector. Currently working as TOil & Gas sector. Currently working as Technical Affairs echnical Affairs echnical Affairs echnical Affairs

Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy awk Energy awk Energy awk Energy

Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas in Emarat , responsible for Emarat Gas in Emarat , responsible for Emarat Gas in Emarat , responsible for Emarat Gas

Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designinPipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designinPipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designinPipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designing & constructingg & constructingg & constructingg & constructing of gas pipelines, of gas pipelines, of gas pipelines, of gas pipelines,

gas metering & regulating stations and in the engineerigas metering & regulating stations and in the engineerigas metering & regulating stations and in the engineerigas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & ng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & ng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & ng 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 Cmaintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Cmaintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Cmaintenance 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 onferences held in the UAE onferences held in the UAE onferences held in the UAE

andandandand EEEEnergy program broadcasted internationally , via GCC leading satellitenergy program broadcasted internationally , via GCC leading satellitenergy program broadcasted internationally , via GCC leading satellitenergy program broadcasted internationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

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

NewBase 04 February 2014 K. Al Awadi

new base special 04 february 2014

Economy & Finance