new base special 10 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,

redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained

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

NewBase 10 February 2014 Khaled Al Awadi

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

Korea Gas eyes stake sale in Iraq's Akkas gas field after 2015: source Seoul (Platts)--7Feb2014/431 am EST/931 GMT

South Korea's state-owned Korea Gas Corp. plans to sell part its 100% stake at the Akkas gas field in Iraq

after commercial production begins in 2015, a company official said Friday.

"The company submitted to the [South Korean] government last month a plan to sell part

of its stake at the Akkas gas field after 2015. But details have not been decided yet," he

said. The official declined to reveal the size of the stake Kogas plans to sell, adding that it

would ultimately be determined by the South Korean government.

But a finance ministry source told Platts Friday

Kogas will sell less than 49% so that it can retain

operatorship at the field. Major decisions at

Kogas, such as stake purchases or sales, are

finalized by the government, which holds a

nearly 60% stake at the state utility.

The Akkas field, the first non-associated gas field

to be developed in Iraq, is on track to start

commercial production in September 2015, said

the Kogas official. Kogas plans to produce about

400,000 Mcf/day for more than 13 years, he said.

Kogas signed a deal in 2011 to develop the

Akkas gas field in the western province of Anbar,

Iraq's largest, which has estimated reserves of 5.6

Tcf. Kogas received approval from the Iraqi

government for the Akkas field development plan

in September 2012 and completed pre-front end

engineering and design in November 2012.

The company is involved in three other fields in

Iraq. It has a 20% interest in the Mansuriya gas

field in northern Iraq, a 30% stake in the Badra

oil/gas field in western Iraq and a 25% interest in

the Zubair oil/gas field in the south. NO PLANS

TO SELL MOZAMBIQUE STAKE

Meanwhile, the Kogas official also said the

company has no plans to sell its 10% stake in a

gas field in Mozambique, denying a January 28

report by The Korea Economic Daily. "The




report is wrong. We don't have such plan," the official told Platts. Kogas holds a 10% stake in the Area 4

gas block in Mozambique.

The South Korean utility has been looking to sell part of its overseas assets to improve its finances. KOGAS

CEO Jang Seok-Hyo told Platts in October last year that the company would sell some or all of its 15%

stake at Australia's Gladstone LNG project, and was also considering selling part of its 20% stake at Shell-

led LNG Canada, among others.

Kogas is under pressure from the government to reduce its debt, which has grown due to massive overseas

projects in the past few years. The government has called for Kogas to lower its debt-to-equity ratio to

274% by 2017, from 438% at the end of 2012. Kogas is owned 26.86% by South Korea's finance ministry,

24.46% by state power monopoly Korea Electric Power Corp. and 6.56% by the country's state-run National

Pension Service. The rest of Kogas is held by individual investors.

Addition – By NewBase :- The Akkas gas field is a Iraqi natural gas field that was discovered in 1992. It began production in

1993 and produces natural gas and condensates. The total proven reserves of the Akkas gas field

are around 5.6 trillion cubic feet (160×109m³) and production is slated to be around 400 million

cubic feet/day (11.4×106m³) . Any future The investments of Akkas gas field by a GTL project will

be highly profitable

to Iraqi oil & gas

It will be possible to export some of the produced petroleum productseither by using the old Iraqi-Syrian oil pipeline after rehabilitating it,or by building a new pipeline. This action will provide Iraq with much-needed extra income to fund the reconstruction projects. In case of applying the federal governing system in Iraq, a GTLproject could be the base of establishing a petroleum and natural gasindustry in the north-western region, which might

form a federationgovernment. It will provide the local governorates of this federationwith their needs of petroleum products, as well as employing theworkers of the region. Such a policy will bring, from the political &economic points of view, some stability for this kind of governingsystem.




Phase one of oil refinery in Kuwaiti city to cost US$5 million http://www.oilreviewmiddleeast.com + Kuna

Kuwait has announced that the phase one of the joint heavy oil refinery project with Saudi Arabia in Wafra will cost US$5bn .

Ali Al-Shemmeri, CEO of Kuwait Gulf Oil Company (KGOC), said that when completed the project is expected to produce around 80,000 bpd.

The phase includes 288 producing wells — 133 injection wells, 67 observation wells and five storm water injection wells — and would require 100MW of electricity used in operating steam turbines, KUNA news agency reported .

Wafra Joint Operations (WJO)

The Field Development and Exploration Group of Kuwait Gulf Oil Company (KGOC) administer the non-operatorship rights and

obligations for the State of Kuwait in the Onshore Divided Zone, an area of some 5000 square

kilometers. The operator of this area is known as the Wafra Joint Operations, WJO.

The facilities of Wafra Joint Operations are located in divided zone (DZ) they include Light & Heavy Oil

production, processing, storage & shipping facilities. Oil is gathered through flow lines in Sub-

Centers (SC) then processed in Main Gathering Centre (MGC). MGC has Ratawi/Burgan processing

plant and Eocene processing plant.




Oman Oil Opens its first overseas office in Tanzania By : Times of Oman

As part of its broad investment programme to increase footprint in key growth markets, Oman Oil Company

(OOC) has opened its first representative overseas office in Dar-

es-Salaam, Tanzania.

Operating under the name Oman Energy Limited (OEL), Oman

Oil Company will work alongside its majority-owned Oman Trading International (OTI) — petroleum

products, crude oil, petrochemicals, and carbon emissions trading company — to support activities and

pursue investment opportunities.

"Commencing operations in Tanzania is an important milestone as we expand our presence throughout the

African continent. The representative office will act as a focal point to explore and develop investments in

Tanzania's petroleum and energy sectors," said Nasser bin Khamis Al Jashmi, undersecretary at the Ministry

of Finance and chairman of Oman Oil Company.

Fertiliser sector "With the accelerated agricultural growth in Tanzania, Oman Oil Company is considering

potential investments in the fertiliser sector, as well as the supply and marketing of petroleum products. In

addition, development of energy infrastructure and coal mining are other opportunities being considered

as part of our investment roadmap in the country.

OOC is a company wholly-

owned by the Government

of the Sultanate of Oman.

The company was

established in 1996 to give

the government a vehicle for

pursuing

investmentopportunities in

the energy sector both

inside and outside the

Sultanate of Oman.

NewsBase , research :- Tanzania does not produce or have any proven crude oil reserves, but the country

contains 230 billion cubic feet (Bcf) of proven natural gas reserves, according to the Oil and Gas Journal.

• The country expects to increase natural gas production in the next coming years from the Mnazi Bay

Concession, located in southeast Tanzania in the Rovuma Basin. Currently, a gas pipeline is being

constructed to transport the natural gas from Mnazi Bay to Tanzania's capitol city, Dar es Salaam.

• The BG Group, in partnership with Ophir Energy, and Statoil, in partnership with ExxonMobil, are leading

exploration activities in offshore Tanzania. To-date, BG and Ophir have made seven discoveries amounting

to more than 10 trillion cubic feet (Tcf) of recoverable natural gas resources. Statoil and ExxonMobil have

made four discoveries amounting to 10 to 13 Tcf of recoverable natural gas resources.

• Along with natural gas, Tanzania also produces coal. The country produced 105 thousand short tons of coal

in 2011, all of which was locally consumed. Tanzania also imports small amounts of coal (4 thousand short

tons in 2011) to supplement domestic demand.




Jizan plant: Aramco asks firm to re-bid - Reuters

Saudi Aramco has asked interested companies to submit cheaper offers to build parts of a complex to supply

energy to an oil refinery at Jizan, industry sources said.

A total of 14 companies bid in October for four packages to build elements of a 2,400 megawatt (MW)

integrated gasification combined cycle (IGCC) plant at the refinery. The bids were higher than the state-run

oil giant had hoped for, so it is now inviting lower-cost bids for three of the four packages, one source said.

"The original bid price exceeded the budget so they are trying to find ways to shrink the cost," said a second

source familiar with the matter.

Saudi Aramco declined to comment.

Aramco has re-tendered three of the four

construction packages, as it is in talks

with China's Sepco III over the power

plant package, sources said. The plant will

supply the 400,000 barrel per day oil

refinery and other consumers around the

industrial port on the Red Sea coast.

Construction of the refinery has not

started. It will be the last of a trio of new

400,000 bpd refineries in Saudi Arabia

between 2013 and 2018. The refinery will

process heavy and medium crude oil into

around 75,000 bpd of gasoline and

250,000 bpd of ultra-low-sulphur diesel.




Russia’s Rosneft has reportedly offered 10 offshore blocks to India’s ONGC Videsh (OVL). http://www.offshoreenergytoday.com

According to The Economic Times, OVL , the wholly owned subsidiary

and overseas arm of Oil and Natural Gas Corporation Limited (ONGC), will

evaluate data provided by Rosneft before deciding on the final agreement.

The offer covers nine oil blocks in the Barents Sea, and one in the Black

Sea. OVL, according to information on their website, currently owns a stake in two oil and gas projects in

Russia. Rosneft did not respond to an e-mail seeking comment, sent by Offshore Energy Today.

Videocon looking to sell

While one Indian oil company is looking to

acquire assets, another one is eyeing

divestment opportunities.Business Line

reports that Videocon is looking for a

customer which would pay a good price for its

stake in an offshore oil field in Indonesia. The

company is awaiting the drilling results from

the Nunukan block, due February 18, and

then, if the price is right, it will sell its 12.5

per cent in the area offshore East Kalimantan.

“Our expertise is to take a block, drill, see

that there are reserves and then

sell,” Rajkumar Dhoot, Managing Director,

explained Videocon’s strategy to Business

Line.

Addition :

In the South Russky block of the Barents Sea

lies the North Gulyaev deposit, which contains

13 million tons of C1+C2 oil and 52 billion

cubic meters of gas. Rosneft experts have

conducted comprehensive geological and

geophysical surveys on the South Russky block

to evaluate hydrocarbon resources and

geological risks. They have graded the most

promising sites and identified key exploration

areas.The work carried out by company

experts has helped develop an understanding

of the field's key forecast oil-and-gas-bearing

zones and formulate an exploration plan for 2012 in order to gain a deeper understanding and more detailed

knowledge of prime sites and prepare them for test drilling in the coming years.




Iran drawing up new deals to lure oil majors www.Tradearabia.com

Iran’s oil ministry said yesterday it is preparing a new type of contract that would be more attractive to major oil companies in case of the lifting of international sanctions. A committee formed at the oil ministry to iron out the new type of contracts is expected to finish its work by May or June, ministry official Mehdi Hosseini who heads the team, told reporters.

The new contracts would replace buyback types under which contractors funded projects and got paid in the form of an allocated production share—a system applied for more than 20 years in Iran. “The reality is that these contracts were one-sided and only beneficial to Iran. Foreign companies were complaining,” Hosseini said.

NewBase ,,, issue research :-

If Western oil companies are to return to Iran, the prerequisite will be a relaxation of many of the US and

EU sanctions on oil trade, investments in the energy sector and financial transactions. The Europeans, to

make large investments, these companies would have to be confident that harsh sanctions would be unlikely

to return. Just as importantly, IOCs would have to be confident that contractual terms will be reasonably

attractive and balanced. They

will want to negotiate contracts

within reasonable time frames.

The competitive landscape for

Iran is much tougher than during

its last opening. Lucrative

investment opportunities have

sprung up in North American

shale oil and gas. Next-door Iraq

also offers access to giant, low-

cost fields — though on tough

terms and with serious political

and security risks. The sector of

the Kurdistan region of Iraq

shows just how successful

modern exploration techniques




can be. And the gas market is much more crowded, with the US, East Africa and Australia all seeking to

rival Qatar as global LNG giants.

More feasible would be a contractual form that mimics the financial returns from a PSC while honouring

nationalist sensitivities. IOCs would like to be able to book reserves but can manage without this if profits

are sufficient. The key is to give international companies a long-term stake in fields that encourages them to

bring their best technology, maximise recovery in Iran’s mature oil-fields and explore new prospects. In gas,

Iran can use the commercial skills of IOCs to develop exports to its neighbours, which will re-integrate it

into the regional and global economy.

If the return of Western IOCs to Iran can bring benefits to Iran and to the global economy, the realities

may mean it’s a long time before ExxonMobil and Chevron are drilling just over the border from their Iraqi

operations.

Any visitor to Asaluyeh will immediately notice the series of Gas and Petrochemical complexes running along the

coast, one of the largest collection of such facilities in the world. The various plants and complexes currently run

for some 12 km, and more are being constructed. A series of gas flares which line the facility are immediately

obvious, including one enormous flare in particular, with flames of almost 100 m in height. This flare is visible far

out to sea. The area also hosts the world's largest aromatic production plant, Noori Petrochemical Complex, with

an annual capacity of 4.2 million tons. Once completed, South Pars development revenue will exceed current oil

exports incomes.




Continued strong wealth growth in the GCC: Report Written by Oman Observer ,in Business

Assets under management have seen a significant upswing around the world but these gains have not

translated into the top-and-bottom-line growth that wealth managers would expect based on past recoveries,

according to a global survey conducted by Booz & Company. The results of the extensive global survey —

conducted from interviews with over 150 wealth management executives, senior financial advisers, and

regulators from more than 15 international markets — reveal that a number of issues are affecting the speed

of recovery, the global management consulting firm said in its report. Key findings from the survey

highlight that new global regulations, reduced revenue pools, new competition and changing customer

behaviour represent major challenges for wealth firms. The survey reveals that not all wealth managers are

equipped to benefit from the expected upturn. Still, the prognosis varies by region. “In the GCC, for

example, the overall macroeconomics outlook remains positive, having maintained solid growth over the

years”, said Dr Daniel Diemers, Principal with Booz & Company. “The truth is, the region — and the UAE

in particular — has benefited considerably from new cash flows as a result of the Arab Spring.”

With assets under

management rising in the

GCC, High Net Worth

(HNW) clients from

nations such as Syria,

Egypt and Libya are —

now more than ever —

looking to invest their

wealth and diversify their

investment portfolios

across the US, Europe and

Asia. As a result, local

GCC players are

progressively entering the

competitive Prime

Brokerage market. “In addition, mid-sized offshore private banks are losing traction — forcing some of

them to reduce their footprint in the GCC or even close shop. At the same time new US and European

players are looking to tap into these new-found opportunities — especially in cities such as Dubai”, added

Diemers. At the structural level, there are significant changes currently occurring in the GCC. Local

regulators are continuing to issue a series of new banking rules and regulations. Naturally, the Foreign

Account Tax Compliance Act (FATCA), Automated Exchange of Information (AEI) and other regulatory

bodies are also urging local private banks to improve their reporting capabilities and management

transparency.

Very recently, digital has emerged as a key topic for wealth management around the globe. And, while

banks in the Middle East are yet to spearhead digital innovations, there certainly seems to be a growing

appetite for it from the client side. The report also highlights that Europe continues to lag behind other

regions, and, accordingly, it is the European banks that have had to take the biggest hit in terms of




profitability. Despite substantial cost reductions at many banks, the average cost/income ratio for European

wealth managers rose from 60 per cent in 2007 to 78 per cent in 2012, and around 20 per cent of European

wealth managers are struggling to turn a profit. In North America, assets under management recently re-

passed the pre-crisis level. To equip themselves to respond to the new market conditions, wealth managers

must:

■ apply a “capabilities lens” to ensure they focus on markets where they can compete and differentiate

themselves effectively;

■ rethink their value proposition with tiered offerings ensuring transparency and customer suitability;

■ go digital to enhance the customer experience and reduce the cost to serve;

■ and adapt their operating model and cost structure to the new revenue realities.

Alan Gemes, co-author and a Senior Partner with Booz & Company noted that: “Wealth managers looking

to play a leading role will need to fundamentally adapt their value proposition and operating model if they

are to capitalise on the continued economic recovery in 2014 and 2015.” (OEPPA Business Development

Dept) .




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 Technical Affairs Oil & Gas sector. Currently working as Technical Affairs Oil & Gas sector. Currently working as Technical Affairs Oil & Gas sector. Currently working as Technical Affairs

Specialist for Emirates General Petroleum Corp. “Emarat“ with external volSpecialist for Emirates General Petroleum Corp. “Emarat“ with external volSpecialist for Emirates General Petroleum Corp. “Emarat“ with external volSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy untary Energy consultation for the GCC area via Hawk Energy untary Energy consultation for the GCC area via Hawk Energy untary 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 , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsibleService as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas for Emarat Gas for Emarat Gas for Emarat Gas

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

gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas tgas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operatransportation , operatransportation , operatransportation , operation & ion & ion & ion &

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 Energy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy 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 10 February 2014 K. Al Awadi

new base special 10 february 2014

Economy & Finance

stake kogas

mansuriya gas field

iraqs akkas gas field

kogas official

mozambique stake

nonassociated gas field

gas block

akkas field development