new base special 18 may 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 18 May 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Abu Dhabi's TAQA eyes $2.15bn capex for 2014 By Reuters Abu Dhabi National Energy Company the state-owned oil explorer and power supplier, has forecast a capital expenditure (capex) of $2.15 billion for 2014, its chief financial officer said in a presentation on Wednesday. Of this figure, TAQA has spent $356 million in the first quarter, of which $290 million was for oil and gas schemes and $66 million for power and water projects, Stephen Kersley said in a presentation via conference call. The capex forecast for the year is lower than the $2.37 billion which the company spent in 2013. TAQA, 75 percent owned by the Abu Dhabi government, has total debt of $21.7 billion as of March 31, of which $11.7 billion is non-recourse project debt with scheduled repayment profile. The rest is bond and loan debt borrowed by the company, Kersley said. TAQA has AED14.9 billion ($4.06 billion) of liquidity available, of which AED4.2 billion is in cash and AED10.7 billion is unutilised bank loans, he added. On Wednesday, TAQA posted a 158 percent jump in first-quarter net profit as revenue from its oil and gas business soared.

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Page 1: New base special  18 may  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 18 May 2014 Khaled Al Awadi

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

Abu Dhabi's TAQA eyes $2.15bn capex for 2014 By Reuters

Abu Dhabi National Energy Company the state-owned oil explorer and power supplier, has forecast a capital expenditure (capex) of $2.15 billion for 2014, its chief financial officer said in a presentation on Wednesday.

Of this figure, TAQA has spent $356 million in the first quarter, of which $290 million was for oil and gas schemes and $66 million for power and water projects, Stephen Kersley said in a presentation via conference call.

The capex forecast for the year is lower than the $2.37 billion which the company spent in 2013.

TAQA, 75 percent owned by the Abu Dhabi government, has total debt of $21.7 billion as of March 31, of which $11.7 billion is non-recourse project debt with scheduled repayment profile. The rest is bond and loan debt borrowed by the company, Kersley said.

TAQA has AED14.9 billion ($4.06 billion) of liquidity available, of which AED4.2 billion is in cash and AED10.7 billion is unutilised bank loans, he added.

On Wednesday, TAQA posted a 158 percent jump in first-quarter net profit as revenue from its oil and gas business soared.

Page 2: New base special  18 may  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

http://www.taqaglobal.com/~/media/Files/T/Taqa-Corporate/presentations/Q1-2014-results-

Page 3: New base special  18 may  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

Russia's Lukoil to drill for gas in Saudi's 'Empty Quarter' By: Reuters

Russia's Lukoil is set to drill deep for unconventional gas in Saudi Arabia's challenging "Empty Quarter" desert region early next year after a decade-long hunt for conventional deposits that has proved futile.

The world's top oil exporting nation invited international oil companies (IOCs) - such as Lukoil, Royal Dutch Shelland Sinopec - to find and pump gas in its southeast Empty Quarter, known as Rub al Khali, more than 10 years ago.

Saudi wants natural gas to help it cover subsidised domestic power demand so it can save oil for more lucrative exports. The IOCs, which formed joint ventures with state oil firm Saudi Aramco, failed to find commercially viable deposits and while the others have abandoned the search, Lukoil has not.

It plans, with Saudi Aramco, to drill two, very deep evaluation wells at depths of up to 19,000 feet in the Mushaib tight gas field in the Empty Quarter, two industry sources said. A Lukoil Overseas official said the joint venture will drill the first well in the first quarter of 2015 and the second during the last six months. Saudi Aramco declined to comment.

"The cost will be very high compared to unconventional reservoirs in the United States," said one industry source. Tight gas is found in reservoirs formed by rocks of low permeability and low porosity typically at depths ranging between 8,000 to 10,000 feet and thus needs to be fracked. Another and more commonly known type of unconventional gas is shale, which is trapped within sedimentary rock.

"Drilling two wells shows that they are serious and positive about the region - and most importantly, that they are more committed than the other IOCs who already left," said Sadad al-Husseini, a former top executive at Saudi Aramco. "But they will have to find some Natural Gas Liquids and condensate to increase their profits and spread their costs."

Inspired by a shale gas surge in the United States, which has transformed it from the world's largest gas importer to an exporter, the Kingdom has begun investigating its large unconventional deposits and their potential for fuelling long-term growth for its booming population.

Aramco's CEO Khalid al-Falih has said Riyadh will spend $3 billion on shale gas development in the Kingdom, but has given no details on the investment. The biggest obstacle for Saudi Arabia is probably the

Ali Al Naimi: Oil Minister, Saudi Arabia

Page 4: New base special  18 may  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

lack of water, because fracking entails pumping huge amounts of fresh water to pressure gas out of rock, shale or compacted sands.

Saudi Aramco said in its 2013 annual review released on Thursday that it was developing new hydraulicfracturing technologies to increase recovery rates and improve cost efficiency. It cited "a CO2-based fracturingfluid as one of the techniques that may meet the water supply challenge."

"Aramco is in the evaluation phase of shale gas and it's an evaluation that requires large capital spending. Further development will happen based on results," said Husseini. "It seems that Lukoil wants to be a partner in the evaluation process."

For now, the most concrete initiative by Aramco is a plan to produce 200 million cubic feet per day (cfd) of unconventional natural gas by 2018 to supply a new phosphate project and power plant in the north of the country. Aramco is also drilling offshore in the Red Sea and has made gas discoveries there.

Oilfield service companies such as Baker Hughes, Schlumberger, Weatherford and Halliburton have all set up operations and bases in Saudi Arabia to help Aramco develop technology for unconventional gas. Falih told Reuters the service companies could help Aramco in its challenge to deliver shale gas economically to the remote far north as well as linking it to the Kingdom's master gas system that runs from east to west.

"Aramco knows its reservoirs very well ... in Saudi it (shale gas) will be more expensive than the U.S.," Baker Hughes' Chief Technology Officer Mario Ruscev told Reuters. "It will be much more data driven and people will spend much more time in understanding exactly what they do before they spend a lot of money."

Page 5: New base special  18 may  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

Petrofac wins $970 million Algerian contract Press Release

UK-based oil and gas services group Petrofac, which slashed its 2014 profit forecast by 11 percent this month, said on Friday it was awarded a contract worth $970 million in Algeria.

Petrofac said the contract was for gas gathering, treatment and development of an export pipeline at the Reggane North Development project in the Reggane basin of the Sahara desert, 1,500 km (930 miles) southwest of Algiers.

The company said the contract was awarded by Groupement Reggane, a partnership between Algerian state-owned company Sonatrach, with a 40 percent stake; Spain's Repsol SA, with 29.25 percent; Germany's RWE Dea AG, with 19.5 percent; and Edison of Italy, with 11.25 percent.

The project will bring on stream 26 wells from four fields in the Reggane basin, the company said. –

Page 6: New base special  18 may  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

GDI places its 3rd rig into service for Oxy Qatar http://www.gulf-times.com/

The jack-up drilling rig ‘Msheireb’, which was acquired by Gulf Drilling International (GDI) earlier this year and refurbished, has been accepted by Occidental Petroleum of Qatar (Oxy) for drilling operations that are set to commence this week. This was jointly announced by GDI, a Gulf International Services (GIS) subsidiary, and Oxy in Doha yesterday.

Jack-up drilling rig Msheireb. Al-Othman (middle) and Kelly: Fine working relationship.

‘Msheireb’ will be the 3rd GDI rig currently in service for Oxy with the rigs ‘Al Rayyan’ and ‘Al Wajba’ already under contract. Msheireb, GDI said, is a “very capable” rig. It has a 60ft cantilever outreach; can drill to a depth of 25,000ft; operate in a water depth of 300ft; and accommodate 116 persons.

Oxy’s president and general manager Steve Kelly said, “We are pleased to mobilise our third drilling rig provided by GDI to support Oxy’s active development programme”.

Kelly commended GDI for the excellent performance of its rigs and looked forward to continuing to enhance the mutually beneficial relationship between Oxy Qatar and GDI. He also emphasised the importance of safe operations and expressed confidence that GDI would continue to work with Oxy Qatar to maintain and enhance the safety performance as the rig fleet expands.

GDI’s chief executive officer Ibrahim J al-Othman said: “I am pleased to have attained Oxy’s contractual acceptance of the rig and note with pride that Msheireb would be GDI’s 8th jack-up rig to go into service.”

He added that with three of its eight jack-up rigs now working for Oxy, a fine working relationship has developed with Oxy, as evidenced by the Performance Recognition Award that Oxy gave GDI signifying that GDI’s safety, operational performance and equipment reliability was amongst the best of all rigs working for Oxy worldwide.

Al Othman said, “The refurbishment work has been completed and the rig will mobilise on schedule. The successful on-time commencement of this five year contract, valued at approximately QR865mn, is also very welcome.”

Page 7: New base special  18 may  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

Oman: Frontier Resources completes seismic interpretation of

Block 38 in southwest Oman ..Source: Frontier Resources

AIM-listed Frontier Resources International has issued an operational update on its

activities in the Sultanate of Oman. Frontier's 100% owned Block 38 is located in the Rub

Al Khali Basin in southwest Oman and covers a surface area of approx. 17,425 sq kms. An

Exploration and Production Sharing Agreement (EPSA) was signed on 25 November

2012. Frontier is the operator.

The Company has now completed the initial interpretation of available legacy 2D seismic data, both original and those data re-processed during 2013 by BGP in Houston. These reprocessed data have enabled Frontier to identify geologic horizons previously unseen on the original seismic.

Frontier is pleased to announce that it has identified a number of potentially attractive exploration targets. These targets, or their stratigraphic equivalents, include formations within Precambrian - Cambrian units, many of which contain hydrocarbons at the analog Khazzan - Makarem Field in central Oman currently under development by BP as presented at the Gas Arabia Summit, December 2011.

In addition to the above formations there is also the potential presence of an Ara formation intra- salt play on the Block as seen after recent reprocessing of a test line. Based on this encouraging information, Frontier has decided to reprocess up to an additional 400 kilometers of legacy 2D seismic data over the area where this lead was identified. There is a plan to acquire new seismic data to mature the identified leads to prospect level and accordingly the company is hi-grading the portfolio to determine the optimal location for a 3D seismic survey. This update has been reviewed and approved for release by the Ministry of Oil and Gas of the Sultanate of Oman.

Page 8: New base special  18 may  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

Senegal: Cairn Energy drilling FAN-1 well, offshore Senegal .. Source: FAR

FAR reports reports that Cairn Energy, the operator of FAR’s two well drilling campaign offshore Senegal has released the following statement to the media in conjunction with their annual reporting to shareholders.

'Cairn’s planned two well exploration programme offshore Senegal began in April using the ‘Cajun Express,’ a 5th generation semi-submersible drilling unit. Operations continue on the FAN-

1 well, located on the North Fan

Prospect in 1,427m water depth in the Sangomar Deep block approx. 100km offshore Senegal. This well is targeting multiple stacked deepwater fans interpreted as potentially thick, high quality clastic reservoirs. In

light of required rig maintenance and to optimise the rig schedule, the top hole section has also been drilled on the second exploration well SNE-1, located on the Shelf Edge Prospect in 1,100m of water. The rig has returned to FAN-1 to continue drilling the deeper sections.

After drilling operations on FAN-1 are complete the rig will then return to the SNE-1 location. This dual objective prospect targets stacked Cretaceous clastics and a deeper target of karstified and fractured Lower Cretaceous shelf carbonates. There are several other shelf edge anomalies that provide follow-up potential in the success case.

Cairn (Operator) has a 40% WI in the three blocks offshore Senegal (Sangomar Deep, Sangomar Offshore, Rufisque Offshore) and is working with JV partners: ConocoPhillips 35% WI; FAR Ltd 15% WI and Petrosen, the Senegal National Oil Company, retaining a 10% WI in the exploration phase. In the event of a commercial success, ConocoPhillips will have the option to operate the future development of the resource.' 'FAR is in an enviable position as we continue our drilling program in Senegal. The company has two strong partners, retains a high equity in any discovery made and is well funded to meet its commitments in these wells. Success in either of these two wells offshore Senegal will be significant and open the door to a large inventory of follow on drill targets creating sizeable upside for the company and its partners. It is a fantastic milestone for the company and one that we aim to reproduce in Kenya where we are currently progressing a farm-out initiative. We expect that the success of the recent Sunbird-1 well will change the exploration landscape offshore Kenya where FAR is well positioned with a strong acreage position. It is wonderful that FAR has a deep African portfolio of opportunities for our shareholders,' said Cath Norman, FAR Managing Director

The FAN–1 well will test a structure with the potential to contain approximately 900 million barrels of oil (mmbbls)* with approximately 135mmbbls net to FAR (reference: FAR ASX release of 27/2/2013). FAN-1 will be immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water and together the two exploration wells will test combined, unrisked, prospective resources of approximately 1.5 billion barrels (225 mmbbls net to FAR) with FAR retaining a 15% working interest in the blocks (reference: FAR ASX release of 27/2/2013). Drilling FAN-1 is expected to be completed mid to late June.

Page 9: New base special  18 may  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

South Stream offshore project progressing well Press Release

The Supervisory Board of Directors of South Stream Transport B.V. met today at the

Company’s headquarters in Amsterdam. During the meeting, the four Shareholders

noted that the offshore Project is on track.

Dr. Henning Voscherau, Chairman of the Supervisory Board: “The progress of the Offshore Project is testimony to the good cooperation between our European and Russian Shareholders. Likewise, I believe South Stream can also serve to foster cooperation on a bigger scale, as the pipeline will create mutual benefits and provide secure energy supplies to Bulgaria and Europe as a whole.“

During the meeting, it was noted that all arrangements for the first two offshore pipelines are in place. In the first quarter of 2014, South

Stream Transport placed orders for the supply of more than 150,000 pipes for the first two pipelines. In addition, Saipem and Allseas were contracted for construction and offshore pipe laying services. Since January 2014, the Company has also signed agreements with two Bulgarian ports for pipe storage, with Siemens for the supply of equipment for control of pipeline operations and with DNV-GL for the certification of the pipeline. This week, South Stream Transport also awarded a contract to the German firm RMG Messtechnik for the supply of metering equipment for the landfall facilities in Russia and Bulgaria. Therefore, all contracts are in place to start offshore construction of the first line this autumn.

The South Stream Offshore Pipeline through the Black Sea is the offshore component of the South Stream Pipeline System which will increase the security of supply of natural gas from Russia to Central and South-Eastern Europe as it creates a new supply route and provides additional transport capacity. The Project will contribute to European energy security in a safe, reliable and environmentally responsible way and will help EU member states meet their CO2 reduction targets.

The South Stream Offshore Pipeline will have a length of 931 km. It will connect the world’s largest natural gas reserves in Russia with consumers in the European Union. The South Stream Offshore Pipeline will originate on the Russian Black Sea shore in the area of Anapa, cross the Turkish Exclusive Economic Zone in the Black Sea and land on the Bulgarian coast near Varna. Commercial operations are scheduled to start by the end of 2015. When fully operational, the South Stream Offshore Pipeline will consist of four pipeline strings, reaching an annual capacity of 63 billion cubic metres.

South Stream Transport B.V. is an international joint venture established for the planning, construction and subsequent operation of the offshore gas pipeline through the Black Sea. The Russian company Gazprom holds a 50% stake in the joint venture. The Italian company Eni has a 20% stake. The French energy company EDF and the German company Wintershall each hold 15%.

Page 10: New base special  18 may  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

US entering oil export market may faze supply http://www.saudigazette.com.sa

Signals from Washington are getting clear. A new variable - the US crude - may soon be entering and indeed impacting the global crude markets. The US government is reportedly considering doing away with a four-decade-old law that bans the sale and export of American oil abroad. The ban was put in place in reaction to the Arab Oil Embargo of 1973.

Today the US is producing 10 percent of global crude oil supply, but exports precisely zero barrels because of the ban. Things have definitely changed. Net oil imports have already fallen to about 5 million barrels a day from a peak of almost 13 million barrels in 2006. Some say, the US may altogether stop importing oil by 2037 as abundant domestic crude supplies, including North Dakota’s Bakken field and Texas’ Eagle Ford formation, may push production to the level of consumption, according to the US government. The US Energy Information Administration (EIA) says that within 23 years the world's largest economy may become energy independent, while demand for crude is expected to be modest.

“This is the first time the Annual Energy Outlook has projected that net imports’ share of liquid fuels consumption could reach zero,” Bloomberg quotes John Krohn, a spokesman for the EIA. The Paris-based International Energy Agency too predicts the US will become the world’s largest oil producer by 2020, and could be energy-independent by 2037.

The change in scenario is forcing Washington to waver somewhat on its stance on the issue. After staying on the sidelines for some time now, the Obama administration seems finally warning up to the idea of permitting American oil abroad,. The administration is seriously considering changing

Page 11: New base special  18 may  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

federal laws to let oil flow abroad, the US Energy Department Secretary Ernest Moniz said in Seoul last week.

“The issue of crude oil exports is under consideration…a driver for this consideration is that the nature of the oil we're producing may not be well matched to our current refinery capacity." Moniz said at the end of an energy conference in Seoul, as reported by the Wall Street Journal. The statements, paired with similar comments by senior Obama counselor John Podesta, mark a notable policy shift inside the administration over the past six months.

"We're taking an active look at what the production looks like, particularly in the Eagle Ford in Texas, and whether the current refinery capacity in the US can absorb the capacity increase to refine the product that's being produced," Podesta told a crowd at the Columbia University's Center on Global Energy Policy a week earlier.The current scenario is a lot different from the position the administration had taken until a few months back.

Obama administration has so far been reticent on the issue of the export ban. The Department of Commerce, which administers export licenses for crude oil, has given no indication of any policy changes. At an energy conference in December sponsored by Platts, Moniz responded only broadly to a question about relaxing or lifting the oil-export ban: "There are a lot of issues in the energy space that deserve some new analysis and examination in the context of what is now an energy world that is no longer like the 1970s."

The idea of exporting crude has long been contentious in Washington, largely based on the perception that exporting oil would cause domestic gasoline prices to soar. Many Democrats in Congress oppose the idea, as lawmakers believe newfound oil wealth should be kept inside the US to keep domestic energy prices low.

Some US lawmakers have not been enthusiastic about oil exports, underlining what it could do to domestic energy prices. "Strife in Ukraine and the Middle East show the continued importance of reducing our reliance on unstable regions for oil," WSJ quoted Sen. Edward Markey as saying.

Page 12: New base special  18 may  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

Similar worry has in recent years also clouded the debate over natural-gas exports too. The recent boom in American gas markets have resulted in the return of petrochemical and chemical industries back in the country in big numbers. The US chemical industry is once again competitive and in the aftermath of the availability of cheap gas, world players, including SABIC, are now looking into the US markets for putting up production units into the industry. The talks of exporting America's now plentiful gas is putting them at unease. This could jack up domestic prices, they feel and hence oppose the very idea.

Proponents of the idea seems ecstatic. "The comments from Podesta and Moniz are encouraging," said Robert Dillon, spokesman for Sen. Lisa Murkowski (R., Alaska), who has loudly called for lifting the oil-export ban. "It's an acknowledgment that they have recognized the potential and are evaluating it. That's certainly a big improvement and moves the needle from what we saw six months ago," WSJ reported.

And as soon as the possibility of US lifting oil export ban became apparent, oil markets reacted. Immediately after Secretary Moniz's statement of the possibility, oil prices rose last Tuesday. The New York benchmark West Texas Intermediate for June delivery rose $1.11 to $101.70 a barrel. In London Brent oil for June delivery advanced 83 cents to $109.24 a barrel in London. And there were reasons for this euphoria. "That's the first time that somebody at that level ... has said anything in regards to it specifically," said Carl Larry, analyst at Oil Outlooks and Opinion told news agencies." We've never been at this point before in our history."

What is pushing Washington to open its taps to the world? That remains a big if. Though it is interesting to note that the policy shift comes on the heels of the crisis in Ukraine, as the US may be taking advantage of an opportunity to disrupt Russian oil exports to Europe. Already the US Energy Information Administration predicts that the spot price of Brent crude oil will decline throughout 2014, dropping from the current barrel price of $108/109 to $103 by the fourth quarter.

And what if that is coupled with opening of the SPR taps and that of other OPEC countries and the return of Iran into the crude markets? Is it a far-fetched idea. Who knows?

Page 13: New base special  18 may  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

Norway supplies more than 20% of Europe’s natural gas needs Source : eia.gov

Norway is the world's third-largest natural gas exporter, after Russia and Qatar. In 2013, Norway

supplied 21% of total European natural gas needs. Norway's natural gas reaches the Continent

mainly via its extensive export pipeline infrastructure (see map below), while a small fraction is

exported as liquefied natural gas (LNG) by tanker. The largest recipients of Norway's natural gas

exports in 2013 were the United Kingdom, Germany, France, the Netherlands, and Belgium.

Source: U.S. Energy Information Administration, with permission from the Norwegian Petroleum Directorate

EIA estimates that Norway produced 3.97 trillion cubic feet (Tcf) of dry natural gas in 2013, a decline of 0.18 Tcf from 2012. EIA also estimates that Norway's net exports for 2013 were 3.8 Tcf of natural gas, which, because of its modest domestic demand, was 96% of its production.

Norway's single largest natural gas field is Troll, which, according to estimates from the Norwegian Petroleum Directorate, produced 1.0 Tcf in 2013, representing 27% of Norway's total natural gas production that year. Three other major producing fields in 2013 were Ormen Lange (0.76 Tcf), Asgard (0.34 Tcf), and Kvitebjorn (0.24 Tcf). These four fields accounted for just over 60% of Norway's total dry natural gas production in 2013.

Additional Info ( NewBae + eia.gov ) :-

Norway operates several important natural gas pipelines that connect directly with other European countries, specifically France, the United Kingdom, Belgium, and Germany.

• Franpipe, with a capacity of 709 Bcf/y, exports gas to Dunkirk, France. • Zeepipe I, IIA, and IIB have a total capacity of 2,435 Bcf/y and transport gas to Zeebrugge,

Belgium. • Europipe I and II, with a total capacity of 1,507 Bcf/y, export to Dornum, Germany.

Page 14: New base special  18 may  2014

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

• Norpipe, with a total capacity of 412 Bcf/y, runs to Emden, Germany. • Vesterled, capacity 502 Bcf/y, links to St. Fergus, Scotland. • Langeled, capacity 928 Bcf/y, links to Easington on the east coast of England.

These pipelines are all operated by Gassco. Some pipelines run directly from Norway's major North Sea production facilities to Gassco-owned processing facilities in the receiving country. Other pipelines connect Norway's onshore processing facilities to other European markets.

Page 15: New base special  18 may  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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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

Page 16: New base special  18 may  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

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

Your partner in Energy Services

Hawk Energy , Dubai UAE

Khaled Malallah Al Awadi, MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990

Energy Services & Consultants Mobile : +97150-4822502

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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 workinOil & Gas sector. Currently workinOil & Gas sector. Currently workinOil & Gas sector. Currently working as g as g as g as

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

MaMaMaManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he hnager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he hnager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he hnager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed as developed as developed as developed

great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engof gas pipelines, gas metering & regulating stations and in the engof gas pipelines, gas metering & regulating stations and in the engof gas pipelines, gas metering & regulating stations and in the engineering of supply ineering of supply ineering of supply ineering of supply

routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for OUs for OUs for OUs for

the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andandandand 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 . . . .

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NewBase 18 May 2014 K. Al Awadi