new base special 09 april 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 09 April 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE UAE will push for nuclear disarmament Caline Malek , The National As the UAE gears up for the eighth Non-Proliferation and Disarmament Initiative (NPDI) in Japan, experts said they hoped the event would mark a step forward in disarming nuclear weapons states The ministerial meeting will be attended by 12 countries, including Germany, Turkey, Mexico, Canada and the Netherlands, in Hiroshima on Friday and Saturday to lead the global discussion on reducing nuclear risks as a stepping stone to a world free of nuclear weapons. “Hiroshima is a historically significant place where the first atomic bomb was dropped,” said Hamad Al Kaabi, the UAE ambassador to the International Atomic Energy Agency. “The humanitarian consequences of using nuclear weapons will be highlighted at this meeting and NPDI ministers will issue a joint statement which will include reaffirmation of the group objectives in promoting non-proliferation and disarmament objectives. “The meeting will also discuss the NPDI contributions to the Non-Proliferation Treaty (NPT) review process and approve multiple working papers to be submitted to the next NPT prep-com in New York later this month.” Dr Sultan Al Jaber, chairman of Masdar and the Minister of State, will head the UAE delegation. “The UAE is an active, founding member of the NPDI and we continue to contribute to the NPT review process through ongoing areas,” Mr Al Kaabi said. He noted, however, the lack of progress with convening a conference two years ago, and several non-compliance issues that have yet to be resolved. He said the UAE was also working on an initiative to promote nuclear disarmament and non-proliferation education. “This group is unique because it represents countries that are active in the area of nuclear non- proliferation and disarmament and enjoys a good reputation in those areas,” he said. “For instance, all NPDI countries have signed the additional protocol to the safeguards agreement. This meeting geographically represents all regions of the world and NPDI states are like-minded in their beliefs and views in those areas, focusing on practical approaches. They can play an essential role in bridging gaps between nuclear states and non-nuclear states.” Deepti Choubey, senior director of nuclear and bio-security at the Nuclear Threat Initiative in Washington, said non-nuclear states were very active on disarmament. “They’ve put forward a proposition that the most effective way to achieving nuclear security is if we have lower numbers

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Page 1: New base special  09  april 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 . Page 1

NewBase 09 April 2014 Khaled Al Awadi

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

UAE will push for nuclear disarmament Caline Malek , The National

As the UAE gears up for the eighth Non-Proliferation and Disarmament Initiative (NPDI) in Japan, experts said they hoped the event would mark a step forward in disarming nuclear weapons states

The ministerial meeting will be attended by 12 countries, including Germany, Turkey, Mexico, Canada and the Netherlands, in Hiroshima on Friday and Saturday to lead the global discussion on reducing nuclear risks as a stepping stone to a world free of nuclear weapons.

“Hiroshima is a historically significant place where the first atomic bomb was dropped,” said Hamad Al Kaabi, the UAE ambassador to the International Atomic Energy Agency.

“The humanitarian consequences of using nuclear weapons will be highlighted at this meeting and NPDI ministers will issue a joint statement which will include reaffirmation of the group objectives in promoting non-proliferation and disarmament objectives.

“The meeting will also discuss the NPDI contributions to the Non-Proliferation Treaty (NPT) review process and approve multiple working papers to be submitted to the next NPT prep-com in New York later this month.” Dr Sultan Al Jaber, chairman of Masdar and the Minister of State, will head the UAE delegation.

“The UAE is an active, founding member of the NPDI and we continue to contribute to the NPT review process through ongoing areas,” Mr Al Kaabi said. He noted, however, the lack of progress with convening a conference two years ago, and several non-compliance issues that have yet to be resolved. He said the UAE was also working on an initiative to promote nuclear disarmament and non-proliferation education.

“This group is unique because it represents countries that are active in the area of nuclear non-proliferation and disarmament and enjoys a good reputation in those areas,” he said. “For instance, all NPDI countries have signed the additional protocol to the safeguards agreement. This meeting geographically represents all regions of the world and NPDI states are like-minded in their beliefs and views in those areas, focusing on practical approaches. They can play an essential role in bridging gaps between nuclear states and non-nuclear states.”

Deepti Choubey, senior director of nuclear and bio-security at the Nuclear Threat Initiative in Washington, said non-nuclear states were very active on disarmament. “They’ve put forward a proposition that the most effective way to achieving nuclear security is if we have lower numbers

Page 2: New base special  09  april 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 . Page 2

of nuclear weapons,” she said. “And the challenge with that concept is, as we start dismantling, when you talk about that weapons-usable material coming out of these warheads, the material security mission becomes all the more important because we want to make sure that material is secure.

“So the issue with those materials will not just be about making sure that nuclear armed states aren’t cheating and secretly reconstructing a nuclear weapons programme, but we need to make sure that a non-state actor, a terrorist, a criminal, an insider, is not having access to it for other malicious intent and that’s the nuclear security mission.”

She said nuclear security was not an “either-or” proposition with disarmament. “It’s something that’s going to accelerate anybody’s goals for disarmament or for non-proliferation or for access to nuclear energy because, to do any of those things responsibly or sustainably, you’re going to need that material security to be in place,” Ms Choubey said. “Non-nuclear weapons states have a very important role to play as they can build the capability and the capacities to be a part of that process.”

She said the UAE held an important leadership position across a variety of nuclear issues.

“For the plans the UAE has for building different power plants and facilities, nuclear security has to be integral to it,” she said. “They’ve already merged non-proliferation with peaceful uses of nuclear energy and it’s been great to have that representation.”

UAE to start on 2014 with 1400MW each x 4

Page 3: New base special  09  april 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 . Page 3

Kuwait signs oil and diesel supply deals with Egypt By Reuters

Kuwait's national oil group will provide Egypt with 85,000 barrels of crude oil per day under a new contract which boosts supply from the Gulf Arab state by 31 percent, state news agency KUNA reported on Tuesday.

Kuwait Petroleum Corporation (KPC) will also increase its supply of diesel and jet fuel to 1.5 million tonnes per year, up from 860,000 tonnes previously, KUNA said. Egypt has been relying on crude deliveries from the Kuwaiti government at favourable terms as well as on donations of gasoline and diesel from Gulf Arab states to help reduce the drain on its foreign exchange reserves and the heavy costs of government fuel subsidies.

The new contracts, signed with Egypt's General Petroleum Corporation on Monday, are valid until the end of 2016 and based on global market prices, KPC official Nasser al-Mudaf told KUNA. The previous KPC oil supply contract was for 65,000 barrels of crude per day.

Mudaf, who runs KPC's global marketing business, added that KPC was willing to sign additional contracts with Egypt to supply cooking gas and fuel oil within the next two months and that these would also be based on international prices. Kuwait is also considering using Egyptian refineries to process Kuwaiti oil as well as using shipping facilities in the country, Mudaf said.

Egyptian Oil Minister Sherif Ismail told Reuters in February that Egypt would need to import an additional $1 billion worth of petroleum products and secure significant natural gas supplies to meet energy needs for the summer. The Gulf Arab states of Saudi Arabia, United Arab Emirates and Kuwait, wary of Egypt's Muslim Brotherhood, gave Egypt billions of dollars in aid, including oil, after the ousting of Islamist president Mohamed Mursi.

In July last year Kuwait pledged $4 billion to Egypt, with a $2 billion central bank deposit, a $1 billion grant and $1 billion in oil products. This was separate from an oil supply contracts which Kuwait has had with Egypt for years and which was due for renewal.

Page 4: New base special  09  april 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 . Page 4

Siemens wins Saudi power plant components order TradeArabia News Service

Siemens Energy has won a $590 million deal to supply six gas turbines, three steam turbines and

nine generators for Rabigh 2 IPP combined-cycle power plant in Saudi Arabia. Korean

construction company Samsung C&T awarded the order for the facility it is erecting for Al-Mourjan

Project Company, a consortium under the direction of the independent power producer ACWA

Power.

The project is expected to be completed in mid-2017, following which Rabigh 2 IPP will have an installed electrical generating capacity of 2,060 megawatt to supply Makkah Province with electric power, said a statement. It is located at Rabigh western Saudi Arabia on the Red Sea, about 150 km north of the port city of Jeddah. Rabigh 2 IPP combined-cycle power plant will comprise three power plant units. For each of these units, Siemens is delivering two model SGT6-5000F gas turbines, one model SST6-5000 HI-L steam turbine, and three SGen6-1000A-series electrical generators. Siemens will also provide support services for erection and commissioning of the power plant and a long-term service agreement, which was also concluded for upkeep and maintenance of the gas turbines. All three power plant units are designed as multi-shaft configurations in which the each gas turbine and steam turbine drives its own dedicated generator. In addition to natural gas, these units can also be fired with petroleum. Thierry Toupin, CEO of Business Unit Gas Turbines and Generators at Siemens’ Energy Sector, said: "This order is yet another indicator of the large demand in Saudi Arabia for efficient power generation solutions. Our high-efficiency F-class gas turbine is a perfect fit for the Saudi market.” -.

SST6-5000 HI-L steam turbine

Page 5: New base special  09  april 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 . Page 5

Austria: OMV invests EUR 400 mn in Lower Austria Press Release by : OMV

OMV, the integrated, international oil and gas company, is consolidating its commitment to oil and gas production in Lower Austria. The Weinviertel region is the third most important production site in the company’s global portfolio after the exploration and production areas in Romania and Norway. In line with the corporate strategy, OMV has invested heavily in exploration and production in Lower Austria. Investment in Lower Austria is set to rise to around EUR 400 mn in the next two years.

Until 2016 around 80 percent of OMV’s total investment of around EUR 3.9 bn worldwide will go on exploration and production. OMV CEO Gerhard Roiss: 'Anyone striving for international growth needs to have a strong foundation. For us this foundation is Lower Austria. This investment in exploration and production underlines the importance of this region in the OMV portfolio.'

The entire region benefits from OMV´s strong position as an employer and reliable partner in Lower Austria with its production of oil and gas and the Schwechat refinery. This was confirmed by a study by the research institute 'Economica Institut für Wirtschaftsforschung', headed by Christian Helmenstein. Over 13,000 jobs are secured as a direct and indirect result of OMV’s activities in Lower Austria and OMV contributes 4.7 percent to the province’s GDP, the same level as the tourism industry.

'We took the decision on these investments in Lower Austria last year. Resources are needed in order to counter the natural depletion and stabilize production in what are mostly mature fields. Without these investments it wouldn’t be possible for us to maintain production levels', said OMV CEO Gerhard Roiss.

Last year the region produced 35,000 boe/d (1 barrel = 159 liters). Despite the natural depletion of resources, this level should remain stable in 2014 as the investment is set to balance out the natural depletion of ten percent per year. Drilling additional wells in Lower Austria is the key to securing and increasing production. Up to 24 drillings will be realized in Weinviertel in 2014, with 20 more planned for 2015 and 2016 respectively. 14 projects involve exploration wells with additional production potential.

Page 6: New base special  09  april 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 . Page 6

Ghana oil output to hit up to 110,000 bpd in 2014 Source: Reuters via Yahoo! Finance

Output from Ghana's offshore Jubilee oilfield will hit between 105,000 and 110,000 barrels per day (bpd) in 2014 versus a budgeted 110,000 bpd, the chief executive of Ghana National Petroleum Corporation said on Tuesday.

'It is expected that the field could produce an average of 100,000 barrels, which is budgeted for, but I am sure we will hit about 105,000 to 110,000 barrels in 2014,' CEO Alex Mould told an investment conference in the Ghanaian capital. 'The average oil production as of March 25 was about 104,000 barrels. We're currently (at) about 109,000 barrels,' he said.

Ghana discovered oil in 2007 and began producing in 2010, adding to confidence over its economy whose GDP growth rose to 11.8 percent the following year. Production has been hampered in recent months, in part because of delays in the construction of a pipeline to bring gas onshore, which has in turn raised the issue of whether the country should flare gas.

Ghana has lifted approx. 20 percent of the crude produced from the time Jubilee started in Dec 2010 to this March, Mould said.

Tullow, listed on the Ghana Stock Exchange, holds a 35.5 percent stake in Jubilee. Other stakeholders are Ghana's state-run GNPC with 13.6 percent, investment group Kosmos Energy, Anadarko Petroleum Corp and Sabre/PetroSA.

Page 7: New base special  09  april 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 . Page 7

UK: Britain warns Scots that independence would hurt energy industry Source: Reuters

Britain on Tuesday warned Scots that voting for independence would put jobs and investment in the Scottish energy industry at risk, threatening the commercial viability of North Sea oil and gas fields and renewable energy projects.

In September Scotland will hold an referendum on whether to sever its 307-year tie with England, with Scottish nationalists arguing that a split would give them greater economic freedom. The British government wants to keep the union intact and has produced a series of analysis papers arguing its case on issues such as the currency, security and finance. The latest paper, due to be released on Wednesday, will say that independence would deter investment in low-carbon renewable energy and make it unprofitable for firms to extract increasingly hard-to-reach oil and gas in the seas off Scotland.

'I fear the economic and energy progress will be seriously affected by the uncertainty and disruption of independence, as investors will hold onto their cash rather than risk it,' Energy Secretary Ed Davey said ahead of the report's release.

A government briefing note said that Britain's wide tax base meant it could afford to offer incentives which made it profitable for firms to tap into dwindling oil and gas reserves, generating investment and creating thousands of jobs. It also said Scotland accounted for 10 percent of electricity sales in Britain, but received 28 percent of consumer-funded subsidies that support renewable energy. 'The reality of independence is that Scottish low carbon energy is unlikely to be able to rely on the current levels of financial support provided by all UK energy bill payers,' the briefing note said.

The government also warned that an independent Scotland would have to compete with other countries to sell electricity into England and Wales.

Speaking earlier on Tuesday Alex Salmond, the pro-independence leader of

the Scottish National Party, said Scotland was the most energy-rich nation in the European Union on a per-head basis. 'Independence would give responsibility for Scotland's natural resources to the people who are most likely to harness them wisely - the people who live and work in Scotland,' he said. 'It would allow us to adopt policies which meet our priorities and specialisms. That would benefit Scotland, and it would also benefit our energy industry.'

Page 8: New base special  09  april 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 . Page 8

Germany ushers in renewable energy reform Source: Reuters

Chancellor Angela Merkel's cabinet approved on Tuesday a reform of Germany's renewable energy law designed to curb a rise in the cost of electricity in Europe's biggest economy driven by the rapid expansion of green power. The reform will slow the growth of green energy, which accounts for 25 percent of Germany's electricity, and force new investors in green power to take some risk.

Although some industrial companies will have to pay more for power in future, the sector has managed to hang on to many of the benefits it says it needs to stay competitive. Household consumers, who have among the highest electricity bills in Europe, are likely to see power bills rise at a slower pace. The blueprint is a victory for Economy and Energy Minister Sigmar Gabriel. The Social Democrat (SPD) leader has had to balance maintaining growth in renewables with the requirement to keep heavy industry happy with affordable power.

'Some 100 days after the start of the new government we have given the energy shift a new start,' Gabriel told reporters. He stressed that he had seen it as his task to make sure Germany protected jobs by preserving its industrial base. Although Berlin is reducing exemptions from a surcharge which finances green subsidies and are granted to industry, the sector's contribution will stay roughly the same, he said.

Gabriel has also had to accommodate the interests of the European Commission and Germany's 16 states, which have differing energy priorities. Germany's shift to green energy and away from nuclear power and fossil fuels is one of conservative Merkel's flagship policies but the cost of ballooning subsidies has threatened to undermine it. The reform is a centrepiece of her four-month-old 'grand coalition' with the SPD.

Under the draft law, the government plans to increase the share of renewable sources to 40-45 percent of total electricity production by 2025 and to 55-60 percent by 2035. This is needed to offset the elimination of nuclear power by 2022. It will scale back green subsidies and upper limits will be placed on onshore wind power expansion (at 2.5 gigawatts in capacity per year), photovoltaic (2.5 GW per year) and offshore wind plants (6.5 GW to 2020). From 2017 green energy producers will have to compete more on the market with conventional power generators. The draft is due to become law in August.

An original law on renewable energy was brought in by an SPD-Greens government in 2000, and was designed to support new, green technologies but the subsidies were so generous that the cost of Germany's renewable energy boom has become unsustainable. Since Merkel decided to speed up Germany's nuclear exit after Japan's 2011 Fukushima disaster, the energy shift has taken on a new importance. Environmental group BUND criticised the plans, saying they would slow the 'green revolution' and they favoured industry. 'Merkel and Gabriel are handing out gifts to companies at the cost of ordinary citizens,' it said in a statement.

After months of wrangling, Gabriel has also agreed with Brussels to continue some exemptions that protect some heavy industrial users of power from a renewable energy surcharge, worth about 5.1 billion euros ($7 billion) a year but which adds 6.3 cents per kilowatt-hour to the power bills of ordinary consumers. The European Commission - the EU's executive arm - was looking into whether such discounts on surcharges

Page 9: New base special  09  april 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 . Page 9

were giving Germany's industry an unfair advantage over rival companies in other countries within the bloc. The deal will be passed by the cabinet in May.

The powerful industrial sector, which accounts for more than a quarter of the German economy, has warned that some 800,000 jobs would be at risk if companies had to pay the surcharge. 'If we don't want to lose jobs, we have to make sure that our companies remain competitive .. And we have to ensure energy and raw materials are affordable,' said Gabriel. 'This is about hundreds of thousands of jobs.'

He said households pay some 8 billion euros towards the green surcharge and industry about 7.4 billion euros. 'In future it will remain roughly that size,' said Gabriel, even though about 400 of the 2,100 firms that enjoy the exemption will have to relinquish it.

Germany's powerful chemical branch said it was relieved at the plans for exemptions. 'Many jobs in the third-biggest industrial sector have been secured, as extremely high additional costs have been avoided,' said Utz Tillmann of chemical industry lobby VCI. The BDI industry association and German Steel Federation echoed those comments.

Germany's wholesale electricity prices are among the lowest in Europe thanks in part to a surge in wind, solar and biofuel capacity in recent years. The boom in renewables also helped drive down wholesale prices in Europe as Germany has become a major exporter of green electricity.

Page 10: New base special  09  april 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 . Page 10

ExxonMobil Sees PNG LNG Exports Starting Mid-Year, Below $19B Budget by Reuters,Sonali Paul

ExxonMobil Corp is on track to start exporting liquefied natural gas from Papua New Guinea by mid-year, ahead of schedule and below its $19 billion budget, the manager of the PNG LNG project said on Wednesday.

The project has started commissioning a gas conditioning plant in PNG's highlands, where the gas is drilled, a 292 kms (180 miles) onshore pipeline has been completed and the first of two units at the LNG plant is ready, project manager Decie Autin said.

First cargoes are expected mid-year, she said, declining to confirm reports that exports would start in July. "It was going to be October. Now we think we've been able to move it up to the middle of the year," Autin told reporters on the sidelines of the Australian Petroleum Production and Exploration Association conference in Perth.

"By the end of the year I'm comfortable we'll be fully ramped up." The project, under construction over the past five years, ran into record wet weather, steep terrain and community issues that slowed work and resulted in costs blowing out by about 25 percent from its original budget of $15 billion.

"The toughest part of the project I would tell you was the onshore pipeline," Autin said. "We had to go from 9,000 feet, up and down a tortuous path down to the shore." The pipeline was built above ground then had to be covered with 1 metre (3 feet) of dirt to bury it for safety and security.

"This is high pressure gas pipe. You don't want anyone messing with it, because it would be dangerous," Autin said. The first shipment is likely to be a spot cargo, rather than going to one of PNG LNG's Japanese, Chinese or Taiwanese customers, who have contracted to take 95 percent of the LNG plant's 6.9 million tonnes a year of gas.

ExxonMobil and its partners, Oil Search Ltd, Santos Ltd, Japan's Nippon Oil Corp, the PNG government and local landowners, are looking to expand the plant, but have yet to decide where to source the additional gas supply from.

Ideally they want gas from PNG's biggest undeveloped fields, Elk and Antelope, controlled by another PNG company, InterOil Corp and France's Total SA, which recently bought into the fields in a deal contested by Oil Search. "We've been in discussions with them (InterOil) directly," Autin said, declining to comment on whether ExxonMobil still wants a direct stake in the Elk and Antelope fields.

Page 11: New base special  09  april 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 . Page 11

About PNG LNG

The PNG LNG Project is an integrated development that includes gas production and processing facilities in the Southern Highlands, Hela, Western, Gulf and Central Provinces of Papua New Guinea. There are over 700 kilometres of pipelines connecting the facilities, which includes a gas conditioning plant in Hides and liquefaction and storage facilities with capacity of 6.9 million tonnes per year.

The investment for the initial phase of the Project, excluding shipping costs, is estimated at US$19 billion. Over the life of the Project it is expected that over nine trillion cubic feet of gas will be produced and sold.

PNG LNG will provide a long-term supply of liquefied natural gas (LNG) to four major customers in the Asia region including:

• China Petroleum and Chemical Corporation (Sinopec) • Osaka Gas Company Limited • The Tokyo Electric Power Company Inc. • CPC Corporation

The Project will progress in a series of development phases with the first LNG deliveries scheduled to begin in 2014.

Major Engineering, Procurement and Construction (EPC) contractors include:

• Clough Curtain Brothers Joint Venture - Upstream Infrastructure - Completed • Saipem - Offshore Pipeline - Completed • Chiyoda and JGC - LNG Plant and Marine Facilities • CBI Clough Joint Venture - Hides Gas Conditioning Plant and Hides Wellpads • SpieCapag - Onshore Pipeline - Completed • McConnell Dowell and Consolidated Contractor Group - Komo Airfield - Completed • Nabors Drilling - Drilling

Construction has finished on the onshore pipeline for the Papua New Guinea

Liquefied Natural Gas (PNG LNG) as the project moves towards completion.

Page 12: New base special  09  april 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 . Page 12

Dragon Oil provides update on its drilling activity in the Cheleken Contract Area offshore Turkmenistan, Source: Dragon Oil

Dragon Oil has published a quarterly update on the drilling activity in the Cheleken Contract Area and its exploration assets in the first quarter of 2014.

In the Cheleken Contract Area, the Dzheitune (Lam) B/155A sidetrack was completed by the jack-up rig Elima as a single producer to a depth of 2,447 metres and tested in February 2014 at an initial production rate of 1,027 barrels of oil per day. Currently, the well is producing 1,175 barrels of oil per day. The jack-up rig has been mobilised to the Dzheitune (Lam) 4 platform and is drilling the Dzheitune (Lam) 4/187B well

to appraise a location for a future platform: the current depth is 2,550 metres with a high angle inclination.

In March 2014, the Neptune rig spudded the Dzhygalybeg (Zhdanov) 21/101 development well. Land Rig 1 is currently drilling the Dzheitune (Lam) 22/188 well. Work is ongoing on the Dzhygalybeg (Zhdanov) A

platform to accept Land Rig 2, which is expected to spud the Dzhygalybeg (Zhdanov) A/102 well in 2Q 2014.

There are three drilling rigs currently operating in the Cheleken Contract Area. We anticipate Land Rig 2, currently being mobilised offshore, to commence drilling later this quarter and the arrival of the Caspian

Driller in 2H 2014.The average field production in the Cheleken Contract Area for 1Q 2014 was 72,300 bopd (1Q 2013: 71,800 bopd). The average production for March 2014 was 73,400 (March 2013: 74,000 bopd) with the quarter's exit rate just above 73,000 bopd. The final production figures for the quarter will be published in the Interim Management Statement due to be released on 22 April 2014.

Due to the delayed start or anticipated later start of drilling by the rigs on site or arriving to the Cheleken Contract Area later this year, we now anticipate that the production growth in 2014 will be around 10% on the

basis of 14-16 wells being completed during the year. The drilling programme is now expected to be weighed more towards the second half of the year.

In Iraq, the consortium of Dragon Oil (30%) and Kuwait Energy Corporation (70% and operator) spudded an exploration well using a drilling rig from the Iraqi Drilling Company on the 25th March 2014. The well is targeting two prospective reservoirs; testing is expected to take place in 2H 2014.

Page 13: New base special  09  april 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 . Page 13

Age of Gas Seen as Sideshow to U.S. Producers Prizing Oil Source eia

The “golden age of gas” that the International Energy Agency foresees as a result of the U.S. energy boom is hardly the future being embraced by industry executives.

At least based on comments from company officials presenting at the Independent Petroleum Association of America’s conference in New York yesterday. For them, oil is still the prize. Gas is almost an afterthought.

Abraxas Petroleum (AXAS) Corp. Chief Executive Officer Bob Watson boasted about how much of his company’s proved reserves are oil and liquids rather than gas (74 percent). PDC Energy (PDCE) Inc. said it’s sitting on huge leases in gas fields that aren’t worth drilling. Whiting Petroleum Corp. (WLL) Chairman and CEO James Volker explained why: oil sells for three times as much as the equivalent amount of natural gas.

That’s no knock against the producers for chasing oil - the commodity that makes the best return for their shareholders. Still, at a time when President Barack Obama is saying natural gas will be a bridge for the U.S. economy from fossil fuels to clean energy, the industry’s views put some

realism into the discussion about what energy resources get unlocked by fracking shale rocks. Tumbling Gas.

U.S. natural gas futures have plunged 72 percent from their 2005 peak to $4.476 as supply expanded to a record. Even after the coldest winter in decades drained stockpiles, the fuel costs about half as much as in Europe. Crude oil, by contrast, is stuck at around $100 a barrel. Even as the

growth of U.S. oil supplies has brought the domestic price below the international benchmark, it’s still 7.6 percent higher than a year ago.

The U.S. is still very much addicted to oil. Consumption will inch up to 19 million barrels a day this year, more than Europe and China combined, the IEA estimates. Even as expanding domestic supplies reduce imports, they haven’t curbed reliance on oil outright. If natural gas is to be a bridge fuel, the transition can’t depend on supply alone. Now that natural gas is so abundant, it needs more uses. While power plants are switching to gas, the U.S. still gets more electricity from coal.

Billionaire Pickens

Billionaire T. Boone Pickens wants trucks and buses to run on natural gas. The chemical industry is investing more than $100 billion in expansion projects spurred by cheap shale gas, according to the American Chemistry Council in Washington. And the Energy Department has approved seven projects to export about 9.3 billion cubic feet a day of natural gas in liquid form.

In the time it takes for those new demand sources to develop, making natural gas more valuable in its own right, its role as a byproduct of oil drilling is contributing to more pollution. In North Dakota, drillers pumping oil in the Bakken shale formation are burning off about $1.4 million worth of natural gas every day. While politicians and industry may pay lip service to natural gas as the

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in this publication. However, no warranty is given to the accuracy of its content . Page 14

clean fuel of the future, the companies out exploiting America’s oil fields leave no doubt that they’re interested in the same fuel as 100 years ago.

Bosch Engineering to unveil FCCU technology for zero-emission vehicles ABR Staff Writer Published 08 April 2014

German auto-parts maker Bosch Engineering is set to unveil its fuel cell control unit (FCCU) for zero-emission vehicles at the 2014MobiliTec specialist trade show in Hannover, Germany.

The FCCU, which is developed for zero-emission off-

highway applications, is based on the company's

automotive large-scale series production hardware.

The new software features integrated hydrogen, air, and coolant control to increase energy efficiency and reduce consumption. It supports a range of system configurations and can be used in several mobile and stationary applications.

Bosch will initially apply its FCCU technology in a project, Innovative On-Board Energiewandler

(InnoROBE), funded by the German Federal Ministry of Education and Research.

Under this project, Bosch is offering a central control unit for a fuel cell system to provide energy for an electrically powered baggage towing truck. The aim of this project is to increase zero-emission range of the company.

Bosch Engineering offers engineering services for automotive, railway and commercial vehicles, off-highway applications, and power sports.

The control unit for fuel cell system for off-

highway vehicles. Photo: Courtesy of Robert

Bosch GmbH

Page 15: New base special  09  april 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 . Page 15

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

Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary EnergTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary EnergTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary EnergTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for y consultation for y consultation for y consultation for

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 Manager in Manager in Manager in

Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through tEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through tEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through tEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great he years , he has developed great he years , he has developed great he years , he has developed great

experiences in the designing & constructingexperiences in the designing & constructingexperiences in the designing & constructingexperiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. of gas pipelines, gas metering & regulating stations and in the engineering of supply routes.

Many years were spent drafting, & compiling gas transportation , operation & mainteMany years were spent drafting, & compiling gas transportation , operation & mainteMany years were spent drafting, & compiling gas transportation , operation & mainteMany years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local nance agreements along with many MOUs for the local nance agreements along with many MOUs for the local nance 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 andauthorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andauthorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andauthorities. 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 09 April 2014 K. Al Awadi

M.D Zaidi

SQ International

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