new base special 20 march 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 20 March 2014 Khaled Al Awadi

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

Abu Dhabi sets nuclear standard /www.thenational.ae/business/energy

Abu Dhabi is building “gold-standard” safety procedures into its plan to develop four nuclear reactors, a foreign adviser to the government said. This country could even teach the Japanese a thing or two, experts say, after drawing lessons from Japan’s Fukushima nuclear disaster.

The UAE is investing in facilities for nuclear power, renewable energy and liquefied natural gas to cut its reliance on oil and will be the first Arab state in the GCC region to have a nuclear plant when the facility starts as scheduled in 2017.

Elsewhere in the Arabian Gulf, Iran generates atomic energy. “Safety culture has got to be first, and here they are doing that,” says Barbara Judge, a member of an international nuclear advisory council formed by the Abu Dhabi Government.

Tokyo Electric Power Company (Tepco), the Fukushima plant’s operator, “had moved to an efficiency culture” focused on profit over safety, Ms Judge said, speaking in Abu Dhabi last week on the third anniversary of the Japanese nuclear accident.

The Fukushima Dai-Ichi nuclear plant leaked radioactive material after a tsunami triggered by an earthquake struck the facility on March 11, 2011. Ms Judge, a former chairman of the UK Atomic Energy Authority, is the vice chairman of a committee advising Tepco on the decommissioning of the damaged Fukushima units.

She also serves on Abu Dhabi’s nuclear International Advisory Board, headed by Hans Blix, a former UN chief weapons inspector. “We respond sincerely” to Ms Judge’s assessment and “will steadily work to improve the safety culture in the company,” Mayumi Yoshida, a Tepco spokeswoman, says.

Emirates Nuclear Energy, the government-owned company building the Abu Dhabi plants, will be a benchmark for safety when the units are built, Ms Judge says. Officials seeking her views into what went wrong at Fukushima have created strong regulatory oversight for the Abu Dhabi project, something Japan lacked, she adds.

Authorities here are still working on a permanent plan for storing or disposing of nuclear waste, and the Government did not brief advisory board members last week on any new developments, Ms Judge says. The UAE plans to generate 25 per cent of its power from four nuclear plants by 2020, Suhail Mohammed Al Mazrouei, the energy minister, said in October.

The reactors will produce 5,400 megawatts when they are completed, Matar Hamed Al Neyadi, an energy ministry undersecretary, said at the time.




Inauguration of $1.7bn Sohar-2, Barka-3 power plants next week Oman Observerin Business

Al Batinah Power, owner of the Sohar 2 power plant, and Al Suwadi Power, owner of the Barka 3 power

plant, are celebrating the official opening and first successful year of their operations in Oman. The official

inaugurations of these large, state-of-the-art facilities have been proposed to be celebrated on March 24 and

26 at the respective plant locations.

The proposed inauguration ceremony at the Sohar 2 power plant will be graced by Mohammed bin Salim al

Tobi, Minister of Environment and Climate Affairs, and the inauguration ceremony at the Barka 3 power

plant by Ahmed bin Abdallah al Shuhi, Minister of Regional Municipalities and Water Resources.

They will be joined by Willem Van Twembeke, President and CEO of GDF SUEZ Energy International,

government officials from Oman, and senior management representatives of the anchor shareholders of both

the firms: GDF SUEZ of France; Suhail Bahwan Group and the Public Authority for Social Insurance

(PASI) of Oman, and Sojitz Corporation and Shikoku Electric Power Co, Inc of Japan. In a joint statement

revealing the plan for the inauguration ceremonies, Jurgen De Vyt, CEO of Al Batinah Power, and Przemek

Lupa, CEO of Al Suwadi Power, said: “This is an important milestone for both companies. It provides an

opportunity to celebrate our first year of successful operation and it signals the start of the committed

journey of our two organisations. As the largest power suppliers of Oman, our mission is to energize the

growth of this ambitious nation.”




“The IPO of both companies, slated to open in May 2014 subject to regulatory approvals, will provide the

citizens of Oman the opportunity to participate in this promising journey,” they added.

l Batinah Power (Sohar 2 power plant) and Al Suwadi Power (Barka 3 power plant) are together currently Oman’s largest operating power companies in terms of installed electrical capacity. As of 2013, the 1488 MW installed capacity of these plants (Al Batinah Power — 744 MW & Al Suwadi Power — 744 MW), represents approximately 27 per cent of Oman’s MIS total installed capacity of ca. 5589MW. The Sohar 2 and Barka 3 power plants were successfully completed and commenced full commercial operation on schedule in April 2013.

Both plants have a similar configuration and employ Combined Cycle Gas Turbine (CCGT) technology, which — for each plant — consists of two gas turbines, each combined with a heat recovery steam generator (HRSG), and one steam turbine. Thanks to this state-of-the-art technology, Sohar 2 and Barka 3 are the most energy efficient large-scale power plants in Oman. The EPC contractors for both projects were Siemens AG of Germany &GS Engineering and Construction Corporation of Korea.

About Oman Electricity

Oman's electricity sector relies heavily on the country's domestic natural gas resources. In

2013, natural gas accounted for more than 80% of the country's electricity generation.

Oman's electricity sector has two major networks, the Main Interconnected System (MIS) and the Salalah system. The larger of the two, the MIS, covers most of the northern area of Oman. The Salalah portion of Oman's grid covers areas in the south, while those areas outside of both networks get electricity from the Rural Areas Electricity Company, primarily through the use of diesel generators. According to IHS Global Insight, 97% of the country has access to electricity.

Oman's generating capacity more than doubled between 2000 and 2010, from 8.6 billion kilowatthours to approximately 18.6 billion kilowatthours. Electricity consumption over the same period grew at a similar rate, rising by roughly 8.6 billion kilowatthours. Oman produces electricity primarily from natural gas, although there is some diesel/distillate generation as well.

Oman is part of the Gulf Cooperation Council's grid interconnection system, which allows for electricity transfers between the six connected countries (Kuwait, Saudi Arabia, Qatar, Bahrain, the United Arab Emirates, and Oman). Oman and the United Arab Emirates established their connection in October 2011.

Oman has a nascent renewable energy sector, with several projects making progress in 2013. In its 2012 Annual Report, Oman's Rural Areas Electricity Company detailed five renewable electricity projects, of which three are solar and two are wind. The combined capacity of the five projects is over 6 megawatts, but none of the proposed facilities are ready to begin operations. While Oman does not currently have a nuclear energy program, the country joined the International Atomic Energy Agency in 2009. Currently, there are no plans to construct any nuclear generating facilities.




Cosco Delivers Newbuild Pipelay Heavy Lift Barge to SapuraKencana by Rigzone Staff

Cosco Corporation (Singapore) Limited reported Wednesday that Cosco (Nantong) Shipyard Co., Ltd , a unit of the firm's 51 percent owned Cosco Shipyard Group Co., Ltd, has delivered a pipelay heavy lift vessel, "SapuraKencana 1200", to Malaysia's SapuraKencana Petroleum Berhad.

The delivery documents for the pipelay heavy lift barge were signed by and between Cosco Nantong and the SapuraKencana recently. The vessel, classed by ABS, is equipped for multiple functions including oil piping processing, laying, installation and heavy lifting. SapuraKencana 1200 is capable of working in shallow water of up to 656 feet (200 meters) with a 10-point mooring system. The vessel also has a DP3 dynamic positioning system, which

enables it to carry out heavy-lifting installation of large-scale offshore structures such as platform blocks, modules and jackets, as well as S-type pipe laying operations in water depths of up to 4,921 feet (1,500 meters). SapuraKencana 1200 is approximately 504 feet (153.6 meters) in length, 115 feet (35 meters) in breadth, 55 feet (16.8 meters) in depth, with a design draft of 25 feet (7.5 meters) and a lifting capacity of 1,300 tons.

About : Malaysia's SapuraKencana Petroleum Berhad

is one of the world's largest integrated oil and gas services and solutions provider. The Group's principal business include providing end-to-end solutions and services to the upstream petroleum industry, and covers activities such as installation of offshore pipelines and structures, fabrication of offshore structures, accommodation and support vessels, drilling vessels, hook-up and commissioning, topside maintenance services, underwater services, offshore geotechnical and

geophysical services, project

management, diving services, offshore support services, infrastructure and specialised steel fabrication works. With a workforce of over 10,000 people, the Group's global presence can be seen in over 20 countries ranging from Malaysia and China to Australia, Middle East, America, Brazil and beyond.

L&T MFY to




deliver offshore oil platforms to Abu Dhabi http://www.zawya.com

Delivering on the vision of diversifying the local economy, and bringing employment opportunities

and benefits to the citizens of the Sultanate, the Sohar-based L&T Modular Fabrication Yard (MFY)

has placed a keen focus on developing In-Country Value. The objective closely aligns to the national

goal of growing the local manufacturing sector as a cornerstone for future economic development,

while delivering growth prospects for the same within Oman's oil and gas sector.

The drive by L&T towards championing In-Country-Value is demonstrated by the forthcoming delivery of five gigantic offshore oil platforms destined for the Umm Lulu and Nasr Oilfields in Abu Dhabi. Scheduled to commence their journey early next week, the offshore platforms produced at L&T MFY in Sohar provide a vivid illustration of how the high-tech fabrication of engineering projects and equipment in Oman can significantly contribute to the local economy in a meaningful and sustained manner, and add to the economic development goals of the Sultanate.

The five offshore oil platforms produced at the Yard each weigh over 3,000 Metric Tonnes and will begin their journey next week from the water-front manufacturing complex, bound for the Umm Lulu & Nasr fields of Abu Dhabi's ADMA OPCO.

Further highlighting the commitment to skills development in the community, L&T is one of the few companies in the region to have set up a fully-fledged 'Training Centre' campus in Sohar. The Centre provides an induction programme for Omani youth in batches of 40 individuals and conducts ongoing technical training on specialised fabrication techniques, including the welding processes -- SAW, SMA and FCA, thus equipping them with the skills and experience to work as qualified welders in the sector. A significant proportion of the trainees gain full-time employment within the L&T operation, while the in-house training programme allows for non-specialised individuals to enrol for technical training and emerge with more employable skills.




Circle Oil: Mahdia drilling imminent (Tunisia) http://www.offshoreenergytoday.com/circle-oil-mahdia-drilling-imminent-tunisia/

Circle Oil Plc, the international oil and gas exploration, development and production

company, has announced the operational update on Mahdia Block, offshore Tunisia.

Plans are well advanced for the drilling of the Mahdia commitment well with long lead items prepared for shipment, main and sub contractor tenders issued with some awarded and others under commercial evaluation or awaiting ETAP approvals. Subject to final negotiation and Tunisian authorities’ approvals the drilling unit has been selected. A farm-out exercise is also underway with a number of companies signed-up to attend the data room this month with further promotion underway.

The licence is within the vicinity of many producing fields, including the Tazerka, Birsa, Oudna, and Halk El Menzel oil fields, and the Maamoura gas field. The most recent discovery, the Mahdia-2 well, located approximately 20 kilometres west of the Block, tested approximately

2,700 bopd from the Serdj carbonate reservoir. This is one of the several possible reservoir horizons proven by producing plays in the region.

The Mahdia exploration well provisionally designated El Medouini-1 is planned to test the stacked play potential of the El Mediouni prospect, including both the primary Birsa Sands target and the secondary fractured carbonates of the Ketatna and Abiod formations as well as the deeper Serdj carbonates. The Birsa Sands alone have an estimated pre-drill P50 case of 185 MMbbls STOOIP.(2) The El Mediouni-1 well will be drilled to a depth of up to 2,300 metres, targeting the stacked primary and secondary reservoir horizons between 1,000 metres and 2,100 metres in subsea depth. The recoverable prospective resources estimate for the El Medouini prospect is 46 MMbbls (2) for the Birsa objective alone, substantially larger than the recoverable commercial threshold for the area which sits at approximately 10 MMbo.

Prof. Chris Green, CEO, said:“Circle is now entering an exciting and busy operational period in all of its

geographies. Drilling operations offshore Tunisia and onshore Oman approach and we await the end of our

frustrating delays in Morocco and being able to start our multi-well drilling campaign.”




Tunisian Oil and Gas Source: GlobalData

The Tunisian Republic is located in the northernmost part of Africa bordering the Mediterranean Sea between Algeria and Libya. It is bordered by Algeria to the west and Libya to the southeast. The upstream oil industry in Tunisia is still modest and upcoming as compared to its neighbouring countries.

Oil and Gas are the two major sources of energy requirements in the country accounting for 48.30% and 39% respectively in 2008. The country produced about 81,000 barrels per day of crude oil in 2009. Crude oil production has declined marginally in the past decade. However, domestic consumption has increased from 83,000 barrels per day in 1999 to about 107,600 barrels per day in 2009. The country no longer exports crude oil as domestic consumption has risen considerably in recent years. The country’s low refining capacity has led the country to import refined petroleum products to meet its demands.

Crude oil reserves in Tunisia increased from 300m barrels in 2000 to 388m barrels in 2008. El Borma, Ashtart and Sidi el Kilani are Tunisia’s main oil producing fields. Tunisia had around 1.80 trillion cubic feet of proven natural gas reserves in 2008, with about two-thirds located offshore. Natural Gas production in Tunisia has increased from 81.70 bn cu ft in 2000 to 91.30 bn cu ft in 2009. Consumption, on the other hand, increased from 83 bn cu ft in 2000 to 112.60 bn cu ft in 2009. Tunisia does not export natural gas. Miskar and Franig are the two major gas fields in the country.

Tunisian Governing Law

The Hydrocarbon Law of 1999 governs Tunisia exploration and production activities. Key elements of the law include the establishment of a framework for production sharing contracts. The Minister in charge of Hydrocarbons grants licences to the oil and gas companies. Two types of contracts are awarded in Tunisia; Production Sharing Agreement (PSA) and Joint Venture. The exploration for hydrocarbons may be undertaken by virtue of a prospecting authorisation, a prospecting permit and/or an exploration permit.

The National Oil Company

The L’Entreprise Tunisienne d’Activités Pétrolières (ETAP) is the state-owned industrial and commercial company, created by the law (N°72-22) of 1972. ETAP is responsible for the management of oil and gas exploration and production activities on behalf of the State. ETAP participates in exploitation concession at a rate which it decides on its own, within the limits of the maximum rate agreed upon in the Special Convention.

The Tunisian Fiscal System

The total Government take in the Tunisia region is estimated to be around 75.95%. Revenues to the government are primarily driven by Royalty, Profit Oil and Income Tax.

Tunisian pipelines

The total length of crude oil, petroleum and natural gas pipeline network in Tunisia in 2008 was 3,291.2 km. Tunisia’s contribution to Middle East and Africa’s total pipeline length is 2.3%. Major pipelines in the country include the Trans-mediterranean Pipeline, the Transmed Pipeline (Tunisia Section) and the Gabes-Tunis Pipeline. These pipelines have lengths of 775.00km, 740.00km and 319.50km respectively. The top three pipeline companies operating in Tunisia are ENI S.p.A., Sonatrach and Enterprise Tunisienne d’Activites Petrolieres.




Oil and Gas Production

At the end of 2009, there were 20 oil and gas companies producing oil and gas in Tunisia. In total the country produced 46.74 million BOE of equity-weighted crude oil and natural gas in the year to 31 December 2009. The principal producing companies, by annual BOE, were:

Additional international companies producing in Tunisia in 2009 include: China National Petroleum Corporation, Kuwait Foreign Petroleum Exploration Co, SOCO Ltd and Petrofac.

Hydrocarbons Exploration

Oil and gas exploration in Tunisia has been increasingly targeted by leading oil and gas companies in the global search for increasing energy supplies. The number of blocks being explored has increased every year for the last six years and has more than doubled in that period:

2004 2005 2006 2007 2008 2009

Blocks being explored 50 65 71 84 104 105

At the end of 2009, over 40 companies held an interest in at least one exploration block in Tunisia. In addition to Dominion Energy’s subsidiary FAPCO, leading oil and gas companies exploring in the country include (with the number of blocks being pursued at the end of 2009 in brackets):

ETAP (18), Pioneer Natural Resources (6), PA Resources (4), Storm Ventures International (5), Al Thani Emirates Petroleum Corporation (2), Circle Oil Plc (3), Rigo Oil Company Ltd (3), AuDAX Resources Ltd (2), Cooper Energy Ltd (2), ENI S.p.A. (2), EXXOIL Tunisia (2), Oil Search Ltd (2), Vietnam Oil and Gas Corporation (1), Vietsovpetro (1), GB Petroleum Plc, Petroceltic International Plc (1), Mediterranean Oil and Gas Plc (1), Mitsubishi Corporation (1), Range Petroleum Ltd (1), BG Group Plc (1) and Royal Dutch Shell (1).

Tunisia ranks alongside Algeria and Libya in its level of new exploration activity:




Azerbaijan: Shah Deniz awards further key Stage 2 contracts Source: BP

The Shah Deniz and South Caucasus Pipeline consortia have announced that they are moving forward at pace with the awards of key contracts for the development of the Shah Deniz Stage 2 and South

Caucasus Pipeline Expansion (SCPX) projects. The contracts, covering both project management services and construction, follow the final investment decisions announced on 17 December 2013. The contract awards underpin the schedule for project delivery and complement the progress being made across multiple areas of this major development.

Since the beginning of 2014 a number of key Stage 2 contracts have been awarded following on from three major contracts which were announced in December 2013:

• The $528 million contract for the construction and commissioning support of the SCPX project facilities in

Georgia has been awarded to the Bechtel Enka joint venture which is comprised of Bechtel International Inc.

and ENKA Insaat ve Sanayi A.S.. The scope of work under this contract includes construction of a 16km

access road, two 120 megawatt compressor stations and a pressure reduction and metering station.

Completion is expected in 2018.

• The contract for pipeline and facilities engineering and project management services for the SCPX project

has been awarded to Chicago Bridge & Iron UK Limited (CB&I). The value of this contract is $174 million and

completion expected in 2018.

• The contract for the initial phase of the subsea and pipeline engineering and project management services,

amounting to $57 million, has been awarded to Wood Group Kenny Limited (WGK).




• The contract for engineering, procurement and construction of the offshore platform living quarters has

been awarded to Apply Emtunga. The $32 million contract should be completed in 2017. Assembly and

commissioning of the living quarters will be carried out at the ATA fabrication yard in Bibi-Heybat near Baku

where topsides units of the platforms will be constructed using local resources.

• The $26 million contract for horizontal directional drilling and line pipe installation for five river crossings of

the SCPX project has been awarded to DrillTec GmbH. Completion is expected in 2016.

• The contract for shaft and tunnel construction and line pipe installation for the two river crossings of the

SCPX project (one in Azerbaijan and one in Georgia) has been awarded to CSM Bessac. This $24 million

contract is expected to complete in 2017.

'We are very pleased to announce these contracts', said Gordon Birrell, Regional President for Azerbaijan, Georgia and Turkey of BP, the operator of the Shah Deniz project. 'They underpin the tremendous progress that has been made since our final investment decision was taken in December. The timely award of the contracts, and the quality of the companies that will be working with us on Shah Deniz and SCP, give us confidence that these important projects can be delivered on time and on budget, allowing first gas in late 2018. Developments of this scale require close partnerships between multiple companies, and we look forward to working closely with all these companies over the next few years.'

These contract awards complement progress across the Southern Corridor projects. Offshore, the Istiglal drilling rig has completed drilling the latest well in the northern part of the field, meaning that five production wells have now been drilled. An upgrade and recertification programme has been successfully completed on the Heydar Aliyev rig, which has now returned to drilling activities in the western part of the field. These two rigs will remain working on the Shah Deniz field to deliver all the wells required to ramp production up to the planned plateau level of 16 billion cubic metres per year.

Additionally, the first consignments of steel for fabrication of the platform jackets arrived in Baku in December 2013, and on 22 February 2014 the first steel for fabrication of the platform decks arrived at the ATA fabrication yard in Bibi-Heybat near Baku. The $974 million contract for fabrication, load out and offshore hook-up and commissioning of the topsides units of the two Stage 2

platforms is being undertaken by the AMEC-Tekfen-Azfen (ATA) consortium which is comprised of AMEC MMC, Tekfen Insaat ve Tesisat A.S. and Azfen joint venture.




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 Khaled Al Awadi is a UAE National with a total of 24 Khaled Al Awadi is a UAE National with a total of 24 Khaled Al Awadi is a UAE National with a total of 24

yearsyearsyearsyears of experience in theof experience in theof experience in theof experience in the Oil &Oil &Oil &Oil & Gas sector. Gas sector. Gas sector. Gas sector.

Currently working as Technical Affairs Specialist for Currently working as Technical Affairs Specialist for Currently working as Technical Affairs Specialist for Currently working as Technical Affairs Specialist for

Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external Emirates General Petroleum Corp. “Emarat“ with external

voluntary Energy consultation for the GCC area via Hawk Energy voluntary Energy consultation for the GCC area via Hawk Energy voluntary Energy consultation for the GCC area via Hawk Energy voluntary Energy consultation for the GCC area via Hawk Energy

Service as a UAE operations base , Most of the experience were Service as a UAE operations base , Most of the experience were Service as a UAE operations base , Most of the experience were Service as a UAE operations base , Most of the experience were

sssspent as the Gas Operations Manager in Emarat , responsible for pent as the Gas Operations Manager in Emarat , responsible for pent as the Gas Operations Manager in Emarat , responsible for pent as the Gas Operations Manager in Emarat , responsible for

Emarat Gas Pipeline Network Facility & gas compressor stations . Emarat Gas Pipeline Network Facility & gas compressor stations . Emarat Gas Pipeline Network Facility & gas compressor stations . Emarat Gas Pipeline Network Facility & gas compressor stations .

Through the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructingThrough the years , he has developed great experiences in the designing & constructing of gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulating stations ating stations ating stations ating stations

and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenand in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenand in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenand in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance ance ance ance

agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the Conferences held in the Conferences held in the Conferences held in the

UAE andUAE andUAE andUAE and 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 20 March 2014 K. Al Awadi

new base special 20 march 2014

Economy & Finance