new base special 04 june 2014

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NewBase 04 June 2014 Khaled Al Awadi

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Bahrain:Key Tatweer Petroleum operations reviewed TradeArabia News Service

Tatweer Petroleum, the ambitious new oil venture of Bahrain, continues to progress in increasing oil and gas production in the Bahrain Field, the company's board was told yesterday.

Finance Minister and Minister in charge of Oil and Gas Affairs Shaikh Ahmed bin Mohammed Al Khalifa, who's also chairman of the company, presided over the board meeting held at the company's main office in Suefra.

The board reviewed operations and corporate matters.

The meeting was attended by UAE Energy Minister Suhail Al Mazroui, representing Mubadala Petroleum, and other representatives of Tatweer shareholders nogaholding and Occidental Petroleum.

In December 2009, Tatweer Petroleum assumed responsibility for the stewardship and redevelopment of the Bahrain Field.

The company's primary goals are to increase the production of oil and the availability of gas to meet Bahrain's future energy demands, in line with the Economic Vision 2030.

The Bahrain Redevelopment Project is a joint venture between nogaholding, the business and investment arm of the National Oil and Gas Authority, Occidental Petroleum Corporation and Mubadala Petroleum.-




NDC inaugurates its new jack-up rig, Marawwah, built in the U.A.E. Emirates News Agency, WAM

The National Drilling Company, NDC, has announced the inauguration of its new jack-up rig, Marawwah, at a ceremony held in Hamriyah Free Zone.

Marawwah is the fourth rig in a series of six similar drilling rigs being acquired by NDC and manufactured by Lamprell in the U.A.E..

Commenting on the inauguration, NDC Chief Executive Officer, Abdalla Saeed Al Suwaidi, said, "The inauguration of Marawwah represents a great addition to the NDC fleet of modern rigs, and will help the company maintain the highest levels of reliability and efficiency, thus ensuring complete preparedness to meet the clients present needs and future demands. We are proud that such an advanced rig, similar to the previous 3 rigs, is built to international standards in the U.A.E., for the U.A.E.." He expressed appreciation and gratitude to the Higher Management of ADNOC, NDC Board of Directors and the Board Advisory Committee for their guidance and continuous support.

Ali bin Harib Al Muhairy, Senior Vice President, Development, of ADMA-OPCO underscored that the company works determinedly and actively to support ADNOC s oil production expansion plans, therefore the expansion of NDC's offshore rig fleet will contribute significantly in

strengthening ADMA s role and efforts in realising the vision of Abu Dhabi to increase oil production. Mr. Al Muhairy expressed his appreciation of the strong partnership with NDC and congratulated the company for the inauguration of this new advanced rig.

Jim Moffat, Chief Executive Officer of Lamprell, said, "I am pleased to announce the completion and delivery of rig Marawwah to NDC, on time and within budget, to world class standards of safety and

quality, and it's a source of pride that Lamprell spent 40 million man working hours in building this modern rig without a single lost time incident." Mr. Moffat thanked NDC for their confidence and trust, and hoped that this successful partnership will lead to more fruitful cooperation in the future




IDB unveils $180 million Renewable Energy for Poverty Reduction plan Reuters

The Islamic Development Bank (IDB) has launched a program to release $180 million in financing to six African countries for renewable energy projects as part of a broad strategy to deepen its involvement in the region. Islamic finance is growing in Africa as governments seek to develop large-scale infrastructure projects. Last year Nigeria's Osun State began offering the country's first Islamic bond. Saudi Arabia-based IDB promotes economic development in its 56 countries through Shariah-compliant loans and grants. Nearly half of the bank's member countries are in Africa which is home to hundreds of millions of Muslims.

The new $180 million initiative, called Renewable Energy for Poverty Reduction, will target projects over the next three years to improve access to electricity in Africa's rural areas where about 70 percent of households lack power. "This is just seed money. The goal is to enlarge it and to build a pipeline of projects," Sidi Mohamned Ould Taleb, regional director for IDB, told Reuters on the sidelines of a conference in Dakar.

Around $125 million has been committed by the bank and initial talks with potential partners such as the OPEC Fund for International Development have started to secure the rest. "Other partners have expressed a readiness," said IDB Vice President Ahmet Tiktik.

The initiative will focus on West Africa and projects in Burkina Faso have already been approved. Projects such as mini-grids and rooftop solar systems for Mali, Senegal, Niger and Nigeria are likely to follow and a sixth African country not yet determined. The initiative follows the launch of a new IDB energy sector policy called "Energy for Prosperity" which seeks to support sustainable energy solutions for the poor.

IDB began a Special Program for the Development in Africa in 2008 and is active in financing projects for health, education and infrastructure. It committed around $5 billion in financing for sub-Saharan Africa between 2008-2012, or around 23 percent of its budget. Taleb said that IDB planned to increase that to around 33 percent or around $7 billion in the next five years.




Indonesia: Pertamina begins operating Siak Block Source: Pertamina

Pertamina (Persero), through its subsidiary Pertamina Hulu Energi, has officially begun operating the Siak

Block, located in Riau Province, following the expiration of the contract between the government and Chevron Siak Indonesia.

The change of the operator of the Siak Block was marked by the signing of a production sharing contract (PSC) between PHE Siak, represented by PHE Siak President Director Bambang Kardono, and SKK Migas, represented by SKK Migas chief Johannes Widjonarko, and was approved by Energy and Mineral Resources (ESDM) Minister Jero Wacik. Pertamina Upstream Director M. Husen and PHE President Director Ign. Tenny Wibowo also witnessed the signing on Monday (26/5).

PHE Siak officially begins operation after the handover of three fields which was done at 00.00 Western Indonesia Time (WIB) on Wednesday (28/5). The

handover was started by a 'ticker handover', key handover and SOP guideline as well as the opening of the new Lindai Collecter Station by PHE President Director.

'This is a very important moment. After being discussed for six months, finally, the Siak Block, located in Riau Province, has been officially taken over by PHE Siak. The production of the block currently reaches 1,800 BOPD. By owning 100% share in the block, which comprises Lindai field, Batang field and South

Menggala field, we hope that the block can contribute in our effort to increase Pertamina and PHE’s production,' said M. Husen on Monday (26/5).

Husen added, 'After the handover process, we will start working to understand the characteristic of the fields and then focus on increasing production.'

Currently, PHE oil production as operator reaches 116,000 bopd (with PHE’s portion of 68,000 bopd). With the entrance of the Siak Block, PHE is expected to boost production to 71,000 bopd.

M. Husen expressed his high appreciation to Chevron that had shown strong commitment in maintaining the operation and production in the six month transition period since 27 November 2013 to 27 May 2014. 'Within that period, we have also built good cooperation between PHE and Chevron so that the Siak Block handover process can be done smoothly.'

In the same occasion, Tenny Wibowo, PHE President director, said that his company was committed to increase production in the Siak Block. In the first year, he targeted that oil production could hit 2,000 bopd. 'We’re also optimistic that we’re able to increase production and committed to continue looking for new resources to support efforts to increase production,' he explained.




China-Russia gas deal likely to challenge Middle East’s grip over Beijing Tom Arnold The National

China’s recent deal to secure gas from Russia is the latest step in its effort to diversify its energy sources, a trend likely to challenge the Middle East’s dominance of the Chinese energy supply chain.

Qatar may be the most immediate loser after the US$400 billion deal inked last month that involves Russia’s energy giant Gazprom supplying China National Petroleum with 38 billion cubic metres of natural gas over 30 years.




Qatar has been increasingly redirecting LNG exports from Europe to Asia, partly to achieve a better price for its deliveries. An estimated 16.4 per cent of China’s gas came from Qatar in 2012, according to BP, the energy company. Barclays estimates about 10 per cent of Qatar’s gas is delivered to the world’s second biggest economy.

“With Russia’s aggressive stance to diversify markets, and Australian supply coming online, the question is whether Qatar will remain immune to the competition,” said Alia Moubayed, the director and head of research for Mena at Barclays. “We do not see any immediate risk as a large part of Qatar’s contracts are long term and oil-linked. But in the medium-term the changes in the global LNG markets could become a major challenge to Qatar.”

China secured the gas at $10 per British thermal unit, a standard industry measure, a 30 to 40 per cent discount on long-term LNG contracts. The rate will give China more power to bargain for lower prices in gas contracts with future suppliers.

Still, the deal leaves the door open for other global suppliers including Qatar and Yemen, another Middle East producer, which supplied 2 per cent of China’s gas in 2012, according to BP. By 2018 Qatar will still account for only about 10 per cent of China’s total gas consumption, estimates Gordon Kwan, the

head of regional oil and gas research at Nomura, the Japanese bank, in Hong Kong.

“We believe there is plenty of room for China to secure other sources of gas through domestic shale gas production in addition to LNG imports from Middle East, Australia, Indonesia, Malaysia and recently Papua New Guinea,” he said.

The deal is regarded as important for Russia as it is for China. As relations have soured in recent months with Europe – its primary gas consumer market – Russia has redoubled efforts to send a third of its gas exports eastwards by 2035. But it also signals China’s eagerness to diversify its energy sources – both in terms of geography and commodity.

China’s rapid economic emergence in recent years has been largely fuelled by oil from the Middle East. According to a recent HSBC report, the Mena region delivered about half of China’s overall oil imports last year, up by 10 percentage points from 2006. Saudi Arabia alone supplies almost 20 per cent of the Asian powerhouse’s imported crude, the bank estimated.

But the rise in the proportion of China’s energy imports from the Middle East may slow as the country looks to providers elsewhere. That could cool the rapid growth in oil receipts trade with China has brought the GCC in recent years.

“As a consequence of this China-driven surge in oil receipts, the energy exporters of the Gulf have seen their aggregate GDP increase by $1 trillion in a decade to $1.7tn, lifting per capita GDP to an average of $35,000 and close to $100,000 in Qatar and Abu Dhabi,” wrote the HSBC economist Simon Williams in the bank’s recent report.




Kenya: Tower Resources completes farm-in to Block 2B Source: Tower Resources

Tower Resources, the AIM-listed Africa-focussed oil and gas exploration company, has announced the completion of its farm-in to Block 2B, onshore Kenya.

On 9 April 2014, the Company announced that Tower Resources (Kenya) Limited, a wholly owned subsidiary of Tower, had agreed to acquire a 15% interest in Block 2B, Kenya, from Lion Petroleum Corp., a wholly owned subsidiary of Taipan Resources Inc., which holds 45% of the licence. Completion was conditional on consent from Premier Oil group, which holds 55% of the licence, which was received last week and also subject to the payment of US$4.5 million cash and the admission on the AIM market of the first tranche of 4.5 million Ordinary Shares in Tower, both of which occurred on Monday 2 June 2014.

In total consideration for the farm-in, Lion Petroleum Corp. receive US$4.5 million cash and a total of 9.0 million Ordinary Shares in Tower, of which the second tranche, consisting of 4.5 million shares, will be received in three months' time. There is also a contingent payment of US$1 million cash on the spudding of a second well. In February 2014, Taipan announced a 51-101 compliant independent assessment of Block 2B, completed by Sproule International Limited, which estimated Block 2B, located in the Anza Basin, to hold gross mean unrisked prospective resources of 1,593mmboe, based on 19 exploration leads.

Activity in the Anza Basin has also increased recently. In Block 9, adjacent to Block 2B, Africa Oil Corp and its partner, Marathon Oil

Corp, are currently drilling the Sala-1 exploration well which will test a large prospect in the Cretaceous Anza rift system. The results of the Sala-1 well are expected this month and the well is targeting gross risked (best estimate) prospective resources of 402mmboe (Africa Oil Corp. Corporate Presentation, May 2014).

The recently acquired 2D seismic data across Block 2B is being used to determine the drilling location of the first potentially play-opening well, Badada-1, which is expected to spud at the end of 2014/early 2015 and will target gross mean unrisked prospective resources of 251mmboe (Sproule International Limited, February 2014).

Graeme Thomson, CEO, stated: 'We are extremely pleased to conclude this exciting farm-in to Kenya at a time when it is opening up as an oil province. The farm-in perfectly fits our strategy of securing material positions in very high upside exploration assets coupled with near-term drilling which offers the potential to materially add-value for shareholders. This licence is right at the forefront of new plays and we look forward to drilling in the coming months.'




Morocco: Tangiers Petroleum provides TAO-1 drilling update Source: Tangiers Petroleum

Tangiers Petroleum has provided an update related to progress of its Moroccan operations. Spudding of the TAO-1 well on the Tarfaya Block offshore Morocco is imminent.

Fully Funded for Drilling of TAO-1 (dry hole case, trouble free)

Tangiers is pleased to confirm that the dry hole cost for the drilling of TAO-1, on a trouble free basis, is ~US$73m and in line with the previous estimate released to market. On this basis, Tangiers is fully covered for the drilling by existing cash and receivables, including headroom for material cost overruns. Given the weather conditions, shallow water depth and well control in the region, the Company does not expect overruns but cannot guarantee that these will not occur and cautions investors that operational risk can never be fully mitigated.

Spud Date Imminent

The Company can confirm that the Ralph Coffman jack-up rig was successfully loaded onto the heavy lift vessel MV Transshelf on the 25th May 2014 and is on track to deliver the rig nearby to the spud location on or about the 4th June 2014. The rig will undergo final checks and kitting out before being towed to site, where drilling is scheduled to commence on or about the 15th of June, in line with previous guidance for a mid-late June spud.




The TAO-1 well is a potential company-maker for Tangiers with 190 million barrels of net best estimate unrisked prospective resource (gross unrisked best estimate 758 million barrels).

Tangiers has a 25 per cent participating interest in the Tarfaya Offshore Block, which is being operated by Galp Energia which has a 50 per cent interest. The remaining 25 per cent interest is held by ONHYM (Morocco's National Office of Hydrocarbons and Mines), who are carried through the exploration phase.

The TAO-1 well is located within a proven petroleum system, adjacent to the Cap Juby oil discovery, and is targeting three stacked objectives.

Release of Bank Guarantee and Past Cost Reimbursement

The Company would like to thank ONHYM and Galp for speedy release of the US$3m bank guarantee, which was secured against the work program but has been replaced by Galp. Tangiers can confirm that final preparations are underway for transfer of both the US$3m bank guarantee and US$7.5m in back costs that formed part of the farm-in deal executed with Galp in December 2012.

Tangiers' Managing Director Dave Wall said 'Tangiers would also like to thank investors for their support, through what has been a fast changing environment that has presented unique challenges, particularly in relation to funding. The Company is excited by the imminent drilling of the TAO-1 exploration prospect'.

Note: According to information on the Tangiers Petroleum web site, the TAO-1 exploration well will optimally test the Trident Prospect and tag the Assaka and TMA objectives within structural closure (see map).




Jordan: BAM Completes New Port in Aqaba Press Release, BAM International

BAM International, the operating company of Royal BAM Group active outside of Europe, and its

local partner MAG have successfully completed the construction of the new port in Aqaba, Jordan,

for Aqaba Development Corporation (ADC), a second port in line with the country’s economic master

plan.

Together with its Jordanian joint venture partner MAG, BAM was responsible for the design and construction of four new berths (in total approximately 800 metres quay wall), revetment works, a breakwater, marine services, pontoons and a slip way. Furthermore land reclamation and dredging works (800,000 m3) as well as the construction of two intake pipes and one outfall pipe was included in this €65 million contract.

Last year BAM completed the container terminal for ADC en APMT in Aqaba and the company is currently building the Aqaba New Liquefied Natural Gas (LNG) terminal, eighteen kilometres south of Aqaba for ADC. The LNG Terminal forms part of ADC’s plan for developing Aqaba’s Energy Ports. The Government has tasked ADC to develop Jordan’s energy intake capabilities to ensure a consistent supply of energy fuels such as oil, LNG and LPG.




Azerbaijan: Wood Group Kenny awarded major subsea contract for stage 2 of Shah Deniz development . Source: Wood Group

Wood Group Kenny (WGK) has been awarded a £36 million call-off contract, for

2014, with BP Azerbaijan under their 2007 Global Agreement. The contract will

cover engineering and project management services for the Shah Deniz 2 Subsea

Execute phase.

WGK has worked with BP on the Shah Deniz project since 2008 to provide engineering support through the Appraise, Select and Define phases of this major project. The award of this contract is in addition to the subsea engineering work currently being carried out under the BP Global Agreement covering engineering and project management services in the North Sea, Angola and Gulf of Mexico.

Wood Group Kenny CEO, Steve Wayman said: 'We have worked with BP Azerbaijan for a number of years and the award of this contract enables us to extend and reinforce that long-standing relationship. We are proud to continue our work with BP in this key region and look forward to using the knowledge we have built up in the previous project phases, and applying it to BP Azerbaijan’s benefit during the production phase'.




Wood Mackenzie: FPSO a cheaper solution for Johan Castberg Press Release, June 03, 2014 .

Wood Mackenzie’s latest analysis of the Johan Castberg area in the Barents Sea

considers the alternative development concepts under consideration by Statoil and

partners Eni SpA (ENI) and Petoro AS.

Wood Mackenzie says the Norwegian project could achieve an internal rate of return (IRR) of 15.9% and breakeven of less than US$60/barrel, by opting for a Floating Production, Storage and Offloading (FPSO) solution in favour of the proposed pipeline, and additionally by benefitting from Government tax-incentives. The estimated IRR of the original concept is 10.4% – which is considered marginal for the operators.

However, Wood Mackenzie believes the Norwegian Government is likely to favour the construction of the pipeline to create much needed infrastructure and unlock the development of smaller fields in the Barents Sea.

Wood Mackenzie’s latest upstream analysis considers alternative development concepts and potential tax-incentives that could help boost economics and increase the probability of the Johan Castberg project being sanctioned.

Ross Cassidy, Head of North West Europe Upstream research for Wood Mackenzie asserts: “We have modelled three scenarios for the development of the Johan

Castberg area, the original concept announced in early 2014; a reduced cost concept; and an FPSO solution with no pipeline or terminal. The analysis shows that the Johan Castberg area could achieve a post-tax IRR of 15% and breakeven of US$60/barrel, by discarding the 280km pipeline and onshore terminal, in favour of an FPSO development. In addition we found applying the same tax-incentive introduced for the Barents’ Snohvit LNG project further increases the project’s IRR to 15.9%”

Related: Statoil: Johan Castberg Development Put Off

Cassidy explains: “The original development concept is under review following poor exploration results from the latest drilling campaign, an increase in tax, and rising costs. As it stands the estimated IRR of the original concept – the construction of a pipeline and onshore terminal – is 10.4% which is considered extremely marginal for the operator, with 15% considered the standard industry benchmark for a robust project.”

“Exploration activity has been increasing in the frontier Barents Sea in recent years, but an inability to commercialise Johan Castberg’s estimated 580 million barrels of oil could be detrimental to future activity. This is why we believe the Norwegian Government – Statoil’s largest shareholder – is likely to favour the




construction of a pipeline as it is expected to create much needed infrastructure and could be instrumental in enabling the development of smaller fields in the area,” Cassidy adds.

Wood Mackenzie says while the development will provide both Statoil and Eni with a strategic hub for future exploration in the prospective acreage, it comes at a higher cost and tax breaks will need to be introduced to incentivise the operators to select this concept over an FPSO.

James Webb, North West Europe Upstream Analyst for Wood Mackenzie explains: “We estimate the cost of the pipeline to shore and onshore terminal at over NOK 12.5 Billion (US$2.1 Billion), so the FPSO option coupled with government tax incentives really is the best case scenario in terms of reducing overall costs. However, even at 15.9% the project would still remain below average in terms of IRR for both Statoil and Eni – who typically average a rate of 17% and 16% for probable developments respectively. As a result tax-incentives, beyond those received by the Snøhvit development, could be required to incentivise the field partners to select a development concept incorporating the pipeline and terminal. We believe the current project economics could cause the field partners to consider farming down to reduce exposure.”

The Johan Castberg area is widely regarded as the next major development in the Norwegian Barents sea, although so far, marginal economics have stalled project sanction – which was due mid-2014. Statoil is due to announce the

preferred development

concept in June 2014 and Wood Mackenzie asserts that key discussions

between stakeholders are crucial to attain a desirable outcome for all parties.

Johan Castberg (PL 532) is located 240 kilometres north-west of Hammerfest

in Norway. The field consists of the Skrugard discovery from 2011 and Havis, which was discovered in 2012.




MidEast oil investment shortfall could push up prices By Reuters

A potential shortfall in investment in production in the Middle East could create a $15 spike in the oil price by 2025, the energy arm of the Organisation for Economic Co-operation and Development (OECD) said.

The world will need to invest $40 trillion in energy supply and $8 trillion on energy efficiency by 2035 to meet growing demand and falling output from mature sources of energy, the International Energy Agency (IEA) said in a report.

A large proportion of this will need to come from the Middle East, as a rise in non-OPEC production such as US shale oil starts to lose steam in the mid 2020s. But the IEA was wary on prospects for a large enough increase in investment from the region.

"The prospects for a timely increase in oil investment in the Middle East are uncertain: there are competing government priorities for spending, as well as political, security and logistical hurdles that could constrain production," the report said.

If production does not increase as needed, it will raise oil prices, the report said. "If investment fails to pick up in time, the resulting shortfall in supply

would create tighter and more volatile oil markets, with prices that are $15 per barrel higher on average in 2025."

Brent crude oil is currently trading at around $109 per barrel, and has been in a relatively tight range since November. It reached as high as $117 per barrel in 2013 and $128 per barrel in 2012. The IEA said that investment in energy production was over $1.6 trillion in 2013, more than double in real terms than 2000, and that $130 billion was spent to improve energy efficiency.

Investment in renewable sources of energy rose to a peak of $300 billion in 2011 from $60 billion in 2000, but has since fallen to $250 billion for 2013. More than four times this, $1.1 trillion per year was spent on the extraction and transport of fossil fuels, oil refining and the construction of fossil fuel-fired power stations, the report said.




Of the $40 trillion that will need to be spent by 2035, less than half will be spent on meeting growth in demand. "The larger share is required to offset declining production from existing oil and gas fields and to replace power plants and other assets that reach the end of their productive life," the report said.

Of the total investment in upstream oil and gas spending of more than $850 billion per year by 2035, gas will account for most of the increase. Over $700 billion is expected to be invested in the liquefied natural gas (LNG) sector alone during this period. The IEA warned that more gas might not lead to much lower prices.

"The expectation that a surge in new LNG supplies will totally transform gas markets needs to be tempered by recognition of the high capital cost of LNG infrastructure, with transportation typically accounting for at least half of the cost of gas delivered over long distances," the report said. For Europe's power markets, the IEA warned that a shortfall of investment could threaten reliability of electricity supplies.

"The investment required to maintain the reliability of Europe's electricity system is unlikely to materialise with the current design of power markets," the report said, adding that wholesale prices were around 20 percent too low to make investment attractive.

"Europe requires more than $2 trillion in power sector investment to 2035... If this situation persists, the reliability of European electricity supply will be put at risk," the IEA said.

Spending on renewable sources of energy and energy efficiency will not be enough to meet targets on climate change stabilisation goals, the report said.




"Today's policies and market signals are not strong enough to switch investment to low-carbon sources and energy efficiency at the necessary scale and speed," the report said.

Energy Supply Requires $40 Trillion Investment to 2035, IEA Says

Spending on extracting oil and gas worldwide will climb by 25 percent to $850 billion a year by 2035, with most of this concentrated in natural gas, according to the report.

Meeting the world’s energy supply needs by 2035 will require $40 trillion of investment, as demand grows and production and processing facilities have to be replaced, the International Energy Agency said.




More than half of that amount will be needed to compensate for declining output at mature oil and gas fields, and the remainder on finding new supplies to meet rising demand, the Paris-based agency said in a report today. The world will increasingly rely on countries that restrict foreign companies’ access to their oil reserves, as North American shale output tails off from the middle of next decade, it predicted.

“Declines and retirements set a major reinvestment challenge for policy makers and the industry,” said the IEA, which advises 29 of the most industrialized nations on energy policy. “In the case of oil, the focus for meeting incremental demand shifts towards the main conventional resource-holders in the Middle East as the rise in non-OPEC supply starts to run out of steam in the 2020s.”

While a boom in shale oil is pushing U.S. production to its highest level in almost 30 years, diminishing the biggest crude consumer’s reliance on imports, this output surge is forecast to fade,

Worldwide




restoring the importance of supplies from the Middle East and the Organization of Petroleum Exporting Countries.

Upstream Spending

Spending on extracting oil and gas worldwide will climb by 25 percent to $850 billion a year by 2035, with most of this concentrated in natural gas, according to the report. Global markets will tighten if investments in the resource-rich Middle East are too slow, pushing oil prices $15 a barrel higher on average in 2025, it warned. Brent futures averaged $108.70 a barrel last year.

“The prospects for a timely increase in oil investment in the Middle East are uncertain,” according to the agency, which estimates that more than 70 percent of global oil and gas reserves are under the ownership of state-controlled entities. OPEC, whose largest producer is Saudi Arabia, currently accounts for 40 percent of global oil supplies.

“Decisions to commit capital to the energy sector are increasingly shaped by government policy measures and incentives, rather than by signals coming from competitive markets,” according to the IEA.

About half of the $40 trillion spent on energy through to 2035 will be on extraction, refining and transporting fossil fuels, the report indicated. Two-thirds of the total will be spent in emerging economies, according to the agency. Investment needed in renewable energy will total $6 trillion, with another $1 trillion in nuclear power.

Annual spending on satisfying global energy requirements will increase to $2 trillion by 2035, up from $1.6 trillion last year, the agency projected.

Spending on energy efficiency through 2035 pushes the total required investment to $48 trillion, according to the IEA.




Middle East




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Your partner in Energy Services

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

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

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NewBase 04 June 2014 K. Al Awadi

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