17
Copyright © 2015 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 01 October 2015 - Issue No. 698 Senior Editor Eng. Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE GCC industrial sector investments worth $380bn in 2014: GOIC Gulf Times The Gulf industrial sector witnessed accelerated growth in 2014 as investment capital jumped to $380bn from $222bn in 2010, the Gulf Organisation for Industrial Consulting (GOIC) said. According to GOIC, Qatar ranked second or 21.7% in terms of distribution of investments among GCC (Gulf Cooperation Council) manufacturing industries, trailing behind Saudi Arabia (55.3%). Qatar was followed by the UAE (9.1%), Oman (6.2%), Kuwait (5.1%), and Bahrain (2.7%). GOIC said growth in investment capital registered a five-year compound annual growth rate (CAGR) of 14.4% as $158bn was invested in industrial ventures over the last five years and in expansion projects of existing industries. GOIC also said the GCC industrial base has witnessed a major expansion over the last five years; the number of manufacturing factories increased by 3,257 new factories from 13,035 in 2010 to 16,292 in 2014 (5.7% CAGR). “Industrial development indicators in the GCC between 2010 and 2014 showed that GCC countries have focused on supporting and encouraging industrial development by all means. Thus, the Gulf industrial sector achieved a quantum leap, particularly in the number of factories, investments, and labour force,” GOIC said.

New base 698 special 01 october 2015

Embed Size (px)

Citation preview

Page 1: New base 698 special  01 october 2015

Copyright © 2015 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 01 October 2015 - Issue No. 698 Senior Editor Eng. Khaled Al Awadi

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

GCC industrial sector investments worth $380bn in 2014: GOIC Gulf Times

The Gulf industrial sector witnessed accelerated growth in 2014 as investment capital jumped to $380bn from $222bn in 2010, the Gulf Organisation for Industrial Consulting (GOIC) said. According to GOIC, Qatar ranked second or 21.7% in terms of distribution of investments among GCC (Gulf Cooperation Council) manufacturing industries, trailing behind Saudi Arabia (55.3%). Qatar was followed by the UAE (9.1%), Oman (6.2%), Kuwait (5.1%), and Bahrain (2.7%). GOIC said growth in investment capital registered a five-year compound annual growth rate (CAGR) of 14.4% as $158bn was invested in industrial ventures over the last five years and in expansion projects of existing industries.

GOIC also said the GCC industrial base has witnessed a major expansion over the last five years; the number of manufacturing factories increased by 3,257 new factories from 13,035 in 2010 to 16,292 in 2014 (5.7% CAGR).

“Industrial development indicators in the GCC between 2010 and 2014 showed that GCC countries have focused on supporting and encouraging industrial development by all means. Thus, the Gulf industrial sector achieved a quantum leap, particularly in the number of factories, investments, and labour force,” GOIC said.

Page 2: New base 698 special  01 october 2015

Copyright © 2015 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

GOIC said new factories have provided about 400,000 new job opportunities, increasing the labour force from 1.1mn in 2010 to 1.5mn in 2014 (8% CAGR).

IMI Plus data also revealed that the GCC manufacturing industries have witnessed an accelerated growth and several developments from the increase in the number of factories and size of investments to the growth of the industrial labour force.

Saudi Arabia ranked first in terms of number of factories (41.8%) followed by the UAE (34.5%), Oman (9.6%), Bahrain (4.8%), Qatar (4.7%) and Kuwait (4.6%).

In terms of labour force, GOIC said Saudi Arabia topped the list at 56%, followed by UAE (25%), Kuwait (5.3%), Oman and Qatar (4.9%). and Bahrain (3.9%).

These developments took place in various industrial activities shaping the manufacturing sector, notably hydrocarbon industries that include refining, petrochemicals, gas liquefaction, production of chemical fertilisers, iron and steel, and food industries among others.

“This was the direct result of GCC countries supporting this sector by providing necessary infrastructure, building industrial cities, creating industrial development funds, and offering a series of industrial incentives. In fact, manufacturing industries play a critical role in achieving strategic and economic objectives of these countries,” GOIC said.

A study of the sectoral structure of GCC factories end of 2014 revealed that “structural metal products, transport and other industries” ranked first compared to other sectors in terms of number of factories (4,594 factories representing 28.2% of the total factories or a five-year CAGR of 6%).

The sectoral structure of the distribution of investments on factories operating in GCC countries end of 2014 revealed that the manufacture of chemical and petrochemical products ranked first in terms of investments, with about $220.2bn representing 57.9% of the total investments in operating factories (five-year CAGR of 14.8%).

The sectoral structure of labour distribution within factories operating in GCC countries end of 2014 revealed that the manufacture of structural metal products, transport, and other industries came in first in terms of labour force (409,000 workers representing 26.8% of the total labour force with a five-year CAGR of 8%).

Page 3: New base 698 special  01 october 2015

Copyright © 2015 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

Morocco: San Leon Energy announces results of the Laayoune-4 well Source: San Leon Energy

AIM-listed San Leon Energy has announced the results of the Laayoune-4 well on the Tarfaya conventional licence, onshore Morocco in the Sahara region. The well (formerly known as El Aaiun-4) was drilled with Entrepose Drilling's Cabot 750 rig, targeting Tertiary channel sandstones and with an expected total depth (TD) of around 2000 metres below rotary table (mBRT). Gas shows were encountered within the reservoir section, whose gross thickness of 23 metres of sandstone and conglomerate was around 10 metres more than prognosed. Reservoir interval porosity was up to 18, with some carbonate laminae. The reservoir was encountered some 100 metres more shallow to prognosis, and confirmed the geological concept of a thick sand channel system.

Elevated mud gas readings, including measurements up to C3 in the shallowest sands, coincided with the logged reservoir section. A gas and liquid kick was taken while drilling below the reservoir interval, leading to total depth being called early on the well at 1814 mBRT. The mud weight used was relatively heavy at 14 ppg (pounds per gallon), and no measurable mud losses were observed while drilling the target interval, providing good evidence for the over pressured nature of the formation.

The well was drilled on time, within budget and with no incidents.

Laayoune-4 has now been suspended, pending further studies and to allow future re-entry. ONHYM and San Leon intend jointly to apply for a new eight year exploration licence. San Leon intends, during the first period of the new licence, to acquire a 3D seismic survey across the multiple channels of the Tertiary play, one channel of which was drilled by the Laayoune-4 well. Based upon the results of the seismic, San Leon would consider the option of re-entering the Laayoune-4 well (including testing), drilling an additional well, or both.

Oisin Fanning, San Leon Executive Chairman, commented:

'We are very pleased with the results of the Laayoune-4 well. Confirming the presence of gas shows and good reservoir quality is encouraging for the potential of the block and leads naturally to applying for a new eight year licence in the area, which would allow for seismic acquisition to be performed over the full channel complex. It would also enable additional data to be acquired over the deeper Jurassic and Triassic prospects. We are grateful to the operational team and to the local workers who together ensured that the well was drilled efficiently and safely.'

Page 4: New base 698 special  01 october 2015

Copyright © 2015 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

Yemen: Petsec Energy completes acquisition of interest in Block 7, Al Barqa

Petsec Energy has completed the acquisition of both the Mitsui E&P Middle East (8.5%) and AWE Limited (21.25%) Participating Interests in the Block 7, Al Barqa Permit, in the Republic of Yemen – combined 29.75% Participating Interest in Block 7.

Block 7 is an onshore exploration permit covering an area of 5,000 sq kms (1,235,527 acres) located approx. 340km east of Sana’a, the capital of Yemen. The block contains the Al Meashar oil discovery as well as an inventory of leads and prospects defined by 2D and 3D seismic surveys, which hold significant oil potential.

Petsec Energy’s Chairman, Terry Fern, commented on the acquisition:

'We are pleased to have concluded both the acquisition of the Mitsui and the AWE interests in Block 7. The acquisition of these interests in combination with the anticipated conclusion of the acquisition by the Company of Oil Search (ROY) Limited, which holds a further 34% Participating Interest and is the designated operator of the block, will provide a significant exposure to high value oil assets within the MENA region that are highly prospective for oil.

Block 7 has the potential to add significant oil reserves to Petsec Energy’s resource base and substantial value to the Company’s shareholders. The Company intends to build upon this initial investment in the Republic of Yemen by seeking further reserve development acquisitions in the region'. The current interests held in Block 7 (Al Barqa) are as follows: Petsec Energy Yemen Ltd 29.75%; Oil Search (ROY) Limited (Operator) 34.00%; KUFPEC (Aden) Limited 21.25%;The Yemen General Corporation for Oil and Gas 15.00%.

Page 5: New base 698 special  01 october 2015

Copyright © 2015 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

India Cuts Domestic Gas Prices 18% Amid Global Energy Slump BloomBerg - Debjit Chakraborty

India reduced the price of locally produced natural gas by 18 percent for six months beginning Oct. 1, hurting producers including Oil & Natural Gas Corp., Oil India Ltd. and Reliance Industries Ltd.

The price will be cut to $3.82 per million British thermal units based on the gross heat value, according to the oil ministry’s Petroleum Planning and Analysis Cell. Rates were fixed at $4.66 per million Btu for the last six months. The price based on the net heat value will be $4.24, an oil ministry official, who asked not to be identified because of rules, told reporters on Wednesday in New Delhi.

The reduction will squeeze profit margins at explorers such as Reliance Industries and state-owned ONGC, while benefiting power producers and fertilizer makers. Low prices may deter exploration companies from investing and increasing output, essential for Prime Minister Narendra Modi’s target of cutting India’s dependence on imported energy to 50 percent by 2030 from 80 percent now.

“The gas prices may remain muted at these levels in the near future unless there are sharp changes in global benchmark prices,” Deepak Pareek, an analyst at Sunidhi Securities & Finance Ltd., said by phone in Mumbai. “The drop will benefit city gas distribution companies and also retail consumers, who may have to pay less. Lower prices were expected and factored into the stock prices of the biggest producers like ONGC.”

Shares of Indraprastha Gas Ltd., a city gas distributor, rose as much as 8.3 percent to 498.70 rupees, the most since July 1, and traded at 485.85 rupees as of 12:12 p.m. in Mumbai. Rival Gujarat State Petronet Ltd., which serves consumers in the western state of Gujarat, rose as much as 3.2 percent. Gas producers ONGC and Oil India fell as much as 1.9 percent and 3.6 percent respectively, while Reliance rose 1.2 percent.

In May 2010, India had set the price of gas produced from fields awarded to ONGC and state explorer Oil India Ltd. at $4.2 per million Btu, based on net calorific value, matching the rate fixed for Reliance’s fields in the Krishna-Godavari basin in September 2007.

India reviews the price of gas half-yearly, using a formula capturing international trends. The gas-price formula is

based on U.S., Canadian, U.K. and Russian rates. A shale production boom in the U.S., a slide in Russia’s ruble and a tumble in crude oil, a common index for gas rates, have depressed prices. Natural gas futures on the New York Mercantile Exchange have dropped about 37 percent in the past year.

Page 6: New base 698 special  01 october 2015

Copyright © 2015 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

India backs solar energy as Paris climate talks loom Oman Observer

After years of betting big on highly polluting coal, India is under huge pressure to commit to cutting carbon emissions ahead of the major meet aimed at forging a global climate pact. But the world’s third largest emitter argues the burden should lie with industrialised countries, which have been accused of hypocrisy in heaping demands on poorer nations.

Instead, Prime Minister Narendra Modi’s government is banking on increasing solar capacity five-fold to help cut crippling blackouts and bring power to 300 million Indians currently living without. The government is expected to hike its renewable energy targets again on Thursday night when it becomes the last major economy to release its pledges for the Paris talks.

A cornerstone of its climate change policy, the solar plans come even as India boosts coal production to meet its growing needs, ignoring calls to slash its dependence on fossil fuels. With its year-round sunshine, barren plains and low-cost labour, the northern desert state of Rajasthan lies at the heart of Modi’s renewable energy ambitions.

“Solar gives you a steady income, steady return. Here the main raw material is the sun,” Ramakant Tibrewala, chairman of Roha Dyechem, a local company making food colours which has jumped on the solar bandwagon.

After investing Rs 800 million ($12 million), Tibrewala has built 67 glistening rows of panels in a Rajasthan solar park, shared with four other local companies and spread over 10,000 hectares (25,000 acres). Tibrewala said he expects to be connected to India’s main grid in the coming weeks, producing 25 megawatts of power, and hopes to see a return in several years.

Under a blistering sun, workers install a sea of solar panels in a north Indian desert as part of the

government’s clean energy push — and its trump card at upcoming climate change talks in Paris.

Page 7: New base 698 special  01 october 2015

Copyright © 2015 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

$100 billion needed: With the cost of manufacturing panels falling and consumer demand rising, foreign firms are also turning to India. Japan’s SoftBank, US-based SunEdison and China giant Trina Solar have all pledged investments in recent months

But much more money is needed to reach the government’s current goal of 100,000 megawatts of solar power by 2022, up from 20,000 at the moment. Modi, a green energy enthusiast who helped create solar parks in his home state of Gujarat, has called for $100 billion in investment.

His government has pledged to smooth the path in a country known for its infuriating levels of red tape, as well as providing tax breaks and other incentives for interested companies. “We do need money,” Upendra Tripathy, the top official in the new and renewable energy ministry, said.

Tripathy denied the government was under international pressure to transform its energy sector, saying instead the “whole world” was impressed by India’s ambitions. “On its own, it (the government) thinks it is good for the globe. And it thinks it is good for the country,” he said.

‘Catastrophic’ coal: But even as India hikes up solar power, the government has vowed to double coal production by 2020 to one billion tonnes to meet the needs of its burgeoning economy, which grew by seven per cent in the first quarter, matching China.

India, which sits on the world’s fifth largest coal reserves, already relies on coal-fired power stations for 60 per cent of its electricity. After storming to victory at elections last May, Modi pledged to bring electricity to the millions of poor who are not connected to the country’s over-stretched power grid.

Experts warn India’s continuing dependence on coal will be environmentally devastating, and call for a cap on emissions which are blamed for climate change.

“For a growing country like India, which will be requiring enormous amounts of energy in the coming years… to base its primary resource on coal is going to be catastrophic, not only for India but also for the world,” said Krishnan Pallassana, India Director of the nonprofit Climate Group.

Modi came under pressure over the issue during his trip to the US for the ongoing UN General Assembly. But the premier told a forum that the focus should be “climate justice” rather than climate action, saying rich countries should help poorer ones which suffer the most from rising sea levels and droughts blamed on global warming.

US President Barack Obama, who piled pressure on Modi during his visit to New Delhi in January, urged world leaders on Sunday to step up efforts for a “strong” climate agreement at the year-end talks.

But Modi has said India will not be forced into committing to a timeline on curbing emissions. “Developed countries must share clean technology, provide financial assistance to the developing world to combat climate change,” Modi said at a September meeting of developing countries in Delhi.

Page 8: New base 698 special  01 october 2015

Copyright © 2015 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

Cameroon: Golar FLNG Project Get Final Approval

Golar LNG has announced that its Cameroon floating liquefied natural gas (FLNG) project has reached a major milestone with the final approval by all parties of the Gas Convention for the project.

The FLNG is expected to be commissioned in second quarter, 2017 and would be installated and operated in Cameroon waters offshore of Kribi.

The final investment decision was signed Wednesday between Cameroon's state owned oil and gas company Société Nationale des Hydrocarbures (SNH), Golar LNG, and Perenco.

The binding tolling agreement having already been agreed between Golar and Perenco, is expected to be formally approved by the 25% upstream partner SNH imminently, Golar said. This agreement establishes the terms under which Golar shall provide liquefaction, storage, and off-loading services to SNH and Perenco as upstream joint venture partners.

The FLNG project is based on the allocation of 500 Bcf of natural gas reserves from offshore Kribi fields, which will be exported to global markets via the GoFLNG facility Hilli, now under construction at Keppel Shipyard in Singapore.

Golar will provide the liquefaction facilities and services under a tolling agreement to SNH and Perenco as parties of the upstream joint venture. It is anticipated that the allocated reserves will be produced at a rate of 1.2 million tons of LNG per annum, representing approx. 50% of the vessel's nameplate production capacity, over an approximate eight year period.

Page 9: New base 698 special  01 october 2015

Copyright © 2015 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

China: Shale gas development in China aided by government investment and decreasing well cost

Source: U.S. Energy Information Administration; Faouzi Aloulou

Decreases in the cost to drill shale gas wells and continued investment into domestic production have allowed China to increase its development of shale gas. Although reliance on natural gas imports has increased in the Chinese energy market, future shale gas production in China would help to meet natural gas demand as the country faces difficulties in developing other natural gas resources, including coalbed methane (CBM).

Over the past 25 years, China has attempted to develop its substantial CBM resources, estimated by China's Ministry of Land and Resources (MLR) at more than 1,000 trillion cubic feet (Tcf). Currently, there are more than 20,000 wells producing a total of 0.36 billion cubic feet per day (Bcf/d) of CBM in China.

However, CBM well productivity in China is significantly lower than in countries such as Australia and the United States. CBM development in China has focused on the Ordos and Qinshui Basins of Shanxi Province. Although these two basins are considered to have China's best geologic conditions, they still face significant geologic challenges (low permeability, under-saturation) that reduce well productivity.

The difficulties faced in increasing CBM output have led China to increase its development of shale gas resources, taking a similar path toward shale development as it did with CBM. China's technically recoverable shale gas resources are estimated at 1,115 Tcf.

The part of these resources that become economically recoverable resources will depend on the market price of natural gas from foreign sources, including both pipeline gas and liquefied natural gas, as well as the capital and operating costs and productivity of shale gas production within China. In the past four years there have been more than 700 shale gas wells drilled in China, reaching production levels of 0.38 Bcf/d.

Page 10: New base 698 special  01 october 2015

Copyright © 2015 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

As Chinese companies gain experience producing from shale, the cost of shale gas drilling has declined. By mid-2015, the cost of drilling a horizontal well in shale formations in the Sichuan Basin was between $11.3 million and $12.9 million per well, according to China National Petroleum Corporation's Economics and Technology Research Institute. This range was a 23% reduction in the cost of a shale gas well compared with the level in 2013 reports from Sinopec, one of China's national oil companies.

China has invested heavily in joint ventures in U.S. shale plays—China's financial involvement represents 20% of total foreign investment in U.S. shale plays. This investment likely has provided China with valuable expertise that can be applied to its own domestic production, helping to lower well development costs.

Decreasing well costs and increasing experience in developing shale gas have been supplemented with continued government investment in the development of shale gas. In 2012, to encourage the exploration of shale gas, the Chinese government established a four-year, $1.80 per million British thermal units subsidies program for any Chinese company reaching commercial production of shale gas. In mid-2015, these subsidies were extended to 2020, but at a lower rate.

While several international companies are actively working to develop shale gas in China, much of the effort has been led by Sinopec and PetroChina, two of China's national oil companies. Initial shale gas development has been focused on the Longmaxi formation in the Sichuan Basin, which is estimated to hold technically recoverable volumes of 287 Tcf.

According to MLR, Sinopec and PetroChina are on schedule to reach 0.6 Bcf/d of shale gas production by the end of 2015. Although still a small fraction of China's overall production, estimated at 13.0 Bcf/d in 2014, increasing shale gas output could eventually help to meet growing demand for natural gas in China and to limit growth in the country's natural gas imports.

Page 11: New base 698 special  01 october 2015

Copyright © 2015 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

NewBase 01 October - 2015 Khaled Al Awadi

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

Oil edges up on estimate of strong demand, Syria risks Reuters + NewBase

Crude oil prices edged up in early Asian trading on Thursday as demand was estimated to have remained strong despite slowing economic growth in Asia, and as Russian and western air campaigns in Syria worried markets.

Traders said that a political risk premium has re-entered oil markets over Syria, where Russia and the United States are both carrying on bombing campaigns without coordination, triggering fears of unintentional clashes.

"U.S. markets are also seeing a first impact of that hurricane heading America's way and we've seen some speculative buying of WTI to prepare for the case it impacts Gulf (of Mexico) production," one broker said.

Hurricane Joaquin strengthened in the Atlantic on Wednesday and could become a major storm, the U.S. National Hurricane Center said, although forecast models did not agree on whether it would make landfall in the United States.

U.S. West Texas Intermediate (WTI) futures were at $45.64 a barrel at 0201 GMT, up 55 cents from their last settlement. Brent crude futures were at $48.71 per barrel, up 34 cents.

World oil demand surged in the first six months of 2015 compared with the same period in 2014, responding to a halving in the price of crude and significant declines in the price of most fuels in most consuming countries, according to national estimates submitted to the Joint Oil Data Initiative (JODI). JODI reported consumption averaged 71.4 million barrels per day (bpd) in the first six months of 2015, up from 69.1 million bpd in the prior-year period, an increase of 2.3 million bpd or 3.3 percent.

Oil price special

coverage

Page 12: New base 698 special  01 october 2015

Copyright © 2015 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

Opec oil output rises in September, survey shows Reuters + NewBase

Opec oil output has risen in September from the month before, a Reuters survey found on Wednesday, as Iraq's northern exports recovered from disruption that had halted supply growth from the group's second-largest producer.

Saudi Arabia and other Gulf members of the Organisation of the Petroleum Exporting Countries have kept output mostly steady, a further sign they are sticking to their focus on defending market share instead of prices.

Opec supply has increased in September to 31.68mn barrels per day (bpd) from a revised 31.57mn in August, according to the survey, based on shipping data and information from sources at oil companies, Opec and consultants.

With the increase in supply this month, Opec has boosted production by almost 1.5mn bpd since it switched in November 2014 to defending market share from its previous policy of cutting output to prop up prices.

Oil prices have almost halved in the past year to $48 a barrel because of excess supply, although analysts see signs that Opec's strategy to curb growth in higher-cost production by letting prices fall is starting to deliver.

"The oversupply is still considerable, but I think it will be less next year as non-Opec supply is likely to shrink," said Carsten Fritsch, analyst at Commerzbank in Frankfurt. The Opec supply boost in September has come from Iraq and a few smaller producers.

Shipments from Iraq's north via Ceyhan in Turkey by Iraq's State Oil Marketing Organisation and the Kurdistan Regional Government have increased from August, when halts in the flow along the pipeline from Iraq slowed exports.

Page 13: New base 698 special  01 october 2015

Copyright © 2015 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

Exports from Iraq's main outlet to world markets, its southern terminals, changed little from August's rate, according to shipping data and industry sources.

Smaller increases have come from Opec's two west African producers, Nigeria and Angola, both of which have slightly boosted exports, according to loading schedules. Nigerian exports are set for further growth in October.

Output in Iran, eager to reclaim its spot as Opec's second-largest producer if and when sanctions are lifted, is edging up, the survey found, and Qatar posted a small supply rise after an accident involving an offshore rig in July that an industry source said slowed output.

Kuwait's output was stable although the United Arab Emirates is pumping more crude due to increasing supplies from its Upper Zakum field, sources in the survey said.

Top exporter Saudi Arabia kept output steady in September as reduced use of crude in domestic power plants was offset by a gentle uptick in exports towards the latter part of the month.

Saudi output remains close to the record high of 10.56mn bpd it pumped in June, as it focuses on market share. Riyadh has regained some market share in 2015, according to a Reuters analysis published on Wednesday. Libyan supply edged lower in September. Output remains disrupted by unrest, and negotiations to reopen closed oil facilities have yet to succeed.

Page 14: New base 698 special  01 october 2015

Copyright © 2015 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 14

NewBase Special Coverage

News Agencies News Release 01 Oct. 2015

Offshore Energy: Decommissioning is becoming a reality

The decommissioning of offshore installations is both a cost burden (to operators) and a potential job and profit machine (to contractors and service providers).

The Technical Session Decommissioning at Offshore Energy Exhibition & Conference 2015 in Amsterdam, presents the latest decommissioning figures and recent experiences in oil and

decommissioning projects. This session is organized in cooperation with the Association of Dutch Suppliers in the Oil and Gas Industry (IRO).

The moderator of this session will be Eric van Ewijk, Asset Manager with EBN BV. Van Ewijk started his career in 1984 with Conoco and held various technical positions within Conoco and EBN, both in the Netherlands, USA and UK.

The presentation contributions to the Decommissioning session come from Peter Valkenier, Engineering and Construction Manager at Wintershall, Simon Axon, Decommissioning Consultant at Centrica Energy E&P, Aart Geurtsen, Project Coordinator at GDF SUEZ E&P Nederland B.V. and Paul Yeats, General Manager at Eastern Hemisphere, Deepwater Technical Solutions, Oceaneering International Services LTD.

Peter Valkenier has been working in the offshore industry for more than 20 years. In 2007 he joined Wintershall Noordzee B.V. as Project Manager for a compression project and for the

abandonment of a satellite platform project. Wintershall has a track record with decommissioning on the North Sea – the first platform that was removed from the Dutch sector – in 1988 – was a satellite from Wintershall in 26 metres water depth.

Simon Axon has been involved in elements of decommissioning since 1986, when he examined decommissioning concepts for the West Sole platforms in the southern North Sea. He will discuss

the preparatory works leading up to submission and approval of regulatory documentation. He will explain his experience in terms of the time required, and explores some of the issues that can arise during the process.

Page 15: New base 698 special  01 october 2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

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

publication. However, no warranty is given to the accuracy of its content. Page 15

In his presentation, Aart Geurtsen will discuss how to deal with upcoming abandonment obligations. Decommissioning is an expensive and challenging activity that operators have successfully managed to push into the future for many years.

However, for a large part of the ageing offshore infrastructure in the mature southern North Sea there is no escape anymore and decommissioning is now truly becoming a reality. Geurtsen started his career in 2008 as a project engineer for Subsea 7.

In 2010 he joined GDF SUEZ E&P Nederland B.V., where he has worked as a Construction Supervisor on various new development projects and modification projects on existing offshore facilities.

Paul Yeates has worked in the Oil & Gas industry in Operations for 23 years for several of the largest service companies in the world. He has been at Oceaneering for the past 9 years and is in charge of all Eastern Hemisphere Decommissioning Operations.

In his presentation the focus will be on how Oceaneering completed a successful wellhead removal campaign; 5 challenging subsea wells severed & recovered on time, within budget and no safety incidents.

The technical session: Decommissioning takes place Wednesday the 14th of October between 15.15 and 17.15 o’clock. Check the full Conference Program (http://offshore-energy.biz/conference/conference-program-1) at Offshore Energy 2015.

Page 16: New base 698 special  01 october 2015

Copyright © 2015 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 16

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

Your partner in Energy Services

NewBase energy news is produced daily (Sunday to Thursday) and

sponsored by Hawk Energy Service – Dubai, UAE.

For additional free subscription emails please contact Hawk Energy

Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010

Mobile: +97150-4822502 [email protected] [email protected]

Khaled Al Awadi is a UAE National with a total of 25 years of experience in the Oil & Gas sector. Currently working as 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 Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great

experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation, operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.

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

NewBase 01 October 2015 K. Al Awadi

Page 17: New base 698 special  01 october 2015

Copyright © 2015 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 17

6th

– 8th

Oct.