New base special 02 april 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,

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NewBase 02 April 2014 Khaled Al Awadi

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

Drydocks World is new venue for ‘smart’ ABB Turbocharging Service Point Press Release – Drydocks World

Drydocks World, the international service provider to the maritime, oil & gas and energy sectors

announced today that ABB’s first-ever Middle Eastern Turbocharging Service Point is now in

operation inside its Dubai-based facility. The new Turbocharging Service Point will promote

sharing of mutual benefits to enhance business of both companies, ensure enhanced

turbocharger service to customers in the yard, and offer one-stop ABB turbocharger solutions at

Drydocks World and Maritime World. ABB’s large global Service Network will also support

Drydocks World. His Excellency Khamis Juma Buamim, Chairman of Drydocks World &

Maritime World said, “We are delighted to further

strengthen the relationship with ABB

Turbocharging. The Service Point would definitely

improve business volume from turbocharger

overhauling and offer enhanced new services and

is also part of our strategy of enhancing efficiency

and reducing fuel consumption, emissions and

building customer satisfaction levels. ABB can

utilize the services provided through our (GOS)

Global Offshore Services arm round the clock. The

OEM Service Point for ABB turbochargers is

located in the yard’s premises and provides an

international warrantee. This will be an added attraction to the owners as it improves the

convenience for them.”

“In the Middle East, we see the need to be even closer to our customers. We are grateful to Drydocks World for entering into this partnership which will further our plans for expansion in the Middle East, with this new station in Dubai. Thanks in part to the new Service Point at Drydocks World, we now offer the full scope of services needed to maintain ABB turbochargers quickly and professionally, including overhauls.

Drydocks World has been working with ABB Turbocharging, and now ABB engineers and equipment will be permanently based inside the Drydocks World’s new Service Center. ABB’s ‘smart’ turbocharger applications in the marine industry help reduce fuel consumption and emissions while increasing efficiency, reliability, service and support. In service, ABB’s turbocharging solutions enable customers to save significantly on service costs and spare parts and to extend the lifetime of their applications.




Qatari GIS Signs Share Purchase Agreement to Acquire all of JDC's 30% Shareholding in GDI Source : Zawya

Gulf International Services (GIS), the largest service group in Qatar, with interests in a broad cross-section

of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling,

accommodation barge, helicopter transportation, and catering services has signed a Share Purchase

Agreement ("SPA") with Japan Drilling Co. Ltd. ("JDC") to acquire all of JDC's 30% shareholding in Gulf

Drilling International Ltd. Q.S.C. ("GDI"). Pursuant to the terms of the SPA, GIS shall own all of JDC's

shares in GDI starting 1 May 2014, making GDI a wholly owned subsidiary of GIS .

The SPA was signed by H.E. Dr.

Mohamed Bin Saleh Al-Sada,

Minister of Energy and Industry

and Chairman and Managing

Director of the Board of GIS , Mr.

Saad Sherida AL-Kaabi, Director of

Oil & Gas Venture of QP and GDI

Chairman of the BOD and Mr.

Yuichiro Ichikawa, President of

JDC.

On this occasion, H.E. Dr.

Mohamed Bin Saleh Al-Sada

stated, "This was an opportune time for GIS to increase its stake in GDI. GDI is now established as a world-

class onshore and offshore drilling contractor." GDI has been growing rapidly in recent years after it

embarked on the most intensive capital investment plan in its history. Upon receiving the full share from

Japan Drilling Company, GDI will become a fully owned subsidiary of GIS . In turn, GIS will enjoy

substantially higher earnings from GDI."

Mr. Yuichiro Ichikawa stated that one of the primary objectives of the joint venture was to transfer drilling

rig technology and the capabilities of operating drilling rigs safely and efficiently from JDC to a Qatari

company on a structured and sustainable basis. We are proud of GDI's achievements over the past ten years

and the self-sufficiency that it has achieved across all aspects of the business.

GDI and JDC also signed a Letter of Intent that provides for the exchange of further technical cooperation

between the two companies and the promotion of mutually beneficial business opportunities. The Letter of

Intent was signed by GDI's CEO, Mr. Ibrahim J. Al-Othman and Mr. Ichikawa. Mr. Al-Othman expressed

his appreciation for the fine support that JDC had extended to GDI and said GDI was pleased to be able to

continue its association with JDC its former partner.

The GIS Chief Coordinator, Mr. Ebrahim Al Mannai, stated that the fundamentals of the GIS investment to

increase its stake in GDI were favorable. It should also be noted that this transaction will be 100% financed

through an unsecured bilateral loan from local banks, obtained at competitive terms and conditions.

Mr. Ebrahim Al Mannai also stated that GIS ' shareholders will benefit from the substantial contributions

that GDI will be making going forward to GIS ' financial performance. GDI has entered into a new stage

and exciting phase of its journey, backed by world-class technical capabilities, impeccable HSSE track

record and long-terms contracts for its assets, and GIS is very pleased to have increased its stake in this

growing company.

From left: Al-Kaabi, HE Dr al-Sada and Ichikawa sign the share

purchase agreement




Mena oil exporters face deficits Tom Arnold , The National .

Five oil-exporting countries in the Middle East and North Africa are on track to run fiscal deficits this year, even as oil prices remain close to US$100 per barrel.

Iran, Iraq, Libya, Bahrain and Algeria are all estimated to have break-even oil prices in excess of that level, according to data highlighted last month by the Institute of International Finance (IIF).

Bahrain, is estimated to have a break-even of $120 per barrel, estimated Bank of America Merrill Lynch in a report released in February. Abu Dhabi remains in fiscal surplus for now, with a break even-price of $95 per barrel, the bank estimated.

The break-even price refers to the estimated level that oil prices need to be at in order for governments to balance their budgets.

“Ballooning government spending has entailed a steady upward pressure on fiscal break-even oil prices, exposing the fiscal outlook to some risks in case of a sustained slump in the oil market,” said George Abed, senior counselor and director, Africa and Middle East department at the IIF.

Prices of North Sea Brent crude are hovering above $100 per barrel, well above the average of $40 in the three decades up to this year. But elevated crude income levels have been more than offset by a rapid ramp-up in spending, which has shot up by an annual average of 11 per cent over the past decade, according to the IIF.




Governments are under increasing pressure to scale back their spending as longer-term oil markets are expected to be squeezed by alternative energy sources in the US and elsewhere coming online. The IMF has forecast that average spot oil prices could slip to $84.40 per barrel by 2019.

Most vulnerable to an oil price dip is Iran, with a break-even price of $145. Within the GCC, Bahrain is most vulnerable, as the IMF warned in a concluding statement last week following a mission to the country.

“Fiscal adjustment must be a priority,” said May Khamis, an IMF official. “The state budget deficit is expected to continue to rise in the medium term. Without additional fiscal measures, government debt is projected to increase and become an important source of vulnerability to the economy in the medium term.”

The IMF recommended a gradual retargeting of subsidies to the lower-income segments of the population, and controlling the growth of the public sector wage bill.

The UAE and Saudi Arabia are among governments at a more advanced stage of balancing their budgets. The UAE federal government and Abu Dhabi and Dubai began more tightly controlling their spending from 2012, after increases to public sector wages and subsidies as well as Abu Dhabi’s $20 billion support to Dubai after that emirate’s debt crisis.

As a result, Abu Dhabi’s break-even oil price had been pared down below $100 to around $95 per barrel this year, Bank of America Merrill Lynch estimated. The break-even price for the UAE as a




whole is lower because of the diversity in the rest of the country’s economy: the IMF estimated the figure at $74 per barrel in 2012.

Saudi Arabia hinted at a shift to a more prudent fiscal stance in its budget for this year, which slowed spending growth to 4.3 per cent from 20 per cent the previous year. But Bank of America Merrill Lynch has warned that the GCC’s largest oil producer might need to take further action if sanctions against Iran are eased sufficiently to allow it to step up oil output.

“The crawl higher in the breakeven oil price coupled with the potential return of Iranian oil suggests government spending growth needs to moderate going forward,” analysts at the bank wrote in a recent report. “Over the medium term, the arithmetic of the fiscal breakeven oil price is firmly against policymakers given revenues are constrained by production and limited non-oil revenues for now.”




Laffan Refinery 2 to enhance Qatar export capacity By Pratap John/Chief Business Reporter Gulf-Times

The new Laffan Refinery will provide value addition and economic opportunities by enhancing Qatar’s export capacity and fulfilling the long-term needs of international markets, said HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada.

At the foundation stone laying of Laffan Refinery 2 (LR2) al-Sada said the new refinery represents another step on the road to achieving the Qatar National Vision conceived by HH the Emir Sheikh Tamim bin Hamad al-Thani.

“This refinery is part of an integrated development programme being implemented by all active parties in the energy and industry sector in Qatar to enhance our capability to fulfil diverse energy needs,” he said.

He added that the new refinery will create added value and new economic opportunities by enhancing Qatar’s export capacity and fulfilling the long-term needs of international markets.

“We in the energy sector, Qatar Petroleum in particular, are fully committed to utilising our hydrocarbon resources and employing the huge potential of our petrochemical and manufacturing industries to achieve the growth and development that our beloved country and its wise leadership aspire to,” al-Sada said.

Qatargas CEO Sheikh Khalid bin Khalifa al-Thani said, “Qatargas is grateful for the confidence placed in us by the shareholders as we initiate the Laffan Refinery 2 project.

“Over the years, Qatargas has successfully delivered a series of world-class projects that uphold our commitment to technical and operational excellence while maintaining the highest environmental standards. Once again we bring together industry leading partners to stimulate further economic growth for the country and deliver increased value to our people and shareholders.”

Qatar Petroleum director (downstream ventures) Mohamed bin Nasser al-Hajri said, “As part of Qatar Petroleum’s vision and mission we are paying special attention to the development of the downstream petrochemical and refining sector with the clear objective of creating additional opportunities for the production of intermediate and derivative products to satisfy the increasing domestic demand and create new markets for the country.

“We value our partnership with Qatargas and the various stakeholders. We look forward to continuing our collaboration on joint projects which foster sustainable growth.”

HE Dr al-Sada speaking at the foundation stone

laying ceremony of the new Laffan Refinery yesterday.




Salman Ashkanani, Qatargas chief operating officer (refinery ventures, said, “With our track record of operating multiple projects safely, reliably and efficiently over the years, we are pleased to have been entrusted to deliver and operate LR2.

“Upon its completion, Qatar will have the capacity to process approximately 40% of the condensate from the North Field. This significant achievement will be a catalyst for further economic stability.”

The Laffan Refinery processes condensate, an associated product to natural gas production that is refined into a number of high-quality products, which can be used as lower emission fuels and feedstock for petrochemical production. All products will be hydro-treated to reduce the sulphur content, meeting the most stringent quality standards.

LR2 will process 146,000 barrels per stream day (BPSD) of condensate feedstock.Refined products will include 71,000 BPSD of naphtha, 60,800 BPSD of kerosene, 27,000 BPSD gasoil and 850 tonnes of LPG a day (butane and propane).




Qatar’s 2013 growth at 6.5% on non-hydrocarbons boost By Santhosh V Perumal/Business Reporter Gulf-Times

Qatar’s real economy is estimated to have expanded by 6.5% year-on-year in 2013, mainly aided by a double-digit

growth in the non-hydrocarbon sectors, according to latest official figures. The contribution the country’s non-

hydrocarbon sector to real gross domestic product (GDP) was higher than that of the hydrocarbon sector, indicating

the fruition of the diversification strategies.

The mining and quarrying sector, under which falls the hydrocarbon sector, is estimated to have grown by mere 0.1%

in 2013, while non-hydrocarbon sector grew by 10.4%, the Ministry of Development Planning and Statistics

(MDP&S) said.

The country’s real GDP (at constant prices) stood at QR340.91bn with the non-hydrocarbon sector constituting 57%

or QR193.19bn and hydrocarbon 43% or QR147.73bn.

The manufacturing sector is seen to have expanded by 5.6%; electricity and water (6.4%); construction (13.6%);

trade, hotels and restaurants (12.8%); transport and communication (9.7%); finance, insurance, real estate and

business services (14.3%) and government services (15.1%).

On nominal terms, the economy is estimated to have risen by 6.6% with the hydrocarbon sector growing by 2.2% and

non-hydrocarbons by 10.5% in 2013.

Trade, hotels and restaurants sector is estimated to have grown by 23.7%, followed by finance, insurance, real estate

and business services (22%); construction (16.7%), electricity and water (11.2%) transport and communication

(10.7%); while manufacturing witnessed 5.1% decline.

On a quarter-to-quarter basis, Qatar’s real economy (at constant prices) is up 5.6% and nominal economy (at current

prices) by 5.8%. The gross value addition (GVA) at constant prices in the hydrocarbon sector during the fourth

quarter (Q4) of 2013 fell 1.1% due to lower production of crude oil and closing down of few liquefied natural gas

trains for maintenance in the third quarter of 2013.

The high growth in GVA at constant prices in the non-hydrocarbon sector during Q4 2013 was owing to double-digit

rise seen mainly in construction, trading, hospitality and financial sectors, coupled with over 12% jump in the

country’s population, MDP&S said.

Quarterly GDP by economic activities, Q4 2013.




Liquefied gas terminal to boost energy sector © Jordan Times 2014 By Mohammad Ghazal

AMMAN -- The liquefied natural gas (LNG) terminal in Aqaba will give a boost to Jordan's

energy sector, a senior official said Monday.

Work on the $65 million terminal is going as planned, and it is expected to be ready during the first quarter of 2015, Energy Minister Mohammad Hamed said at a meeting held by the EDAMA Association under the theme "The Role of Gas in Securing a Sustainable Energy Mix for Jordan".

"The terminal will give independence to the Kingdom in the energy field," he added. The project will enable Jordan to meet its needs of natural gas for power generation after the halt in natural gas supplies from Egypt since July 2013 following a series of attacks against the Arab Gas Pipeline in Sinai, according to the minister.

"Although importing LNG is more expensive than the natural gas that we used to get from Egypt, LNG remains 30-35 per cent less expensive than diesel and heavy fuel, which we currently use for power generation after the cut in Egyptian gas," Hamed said.

The minister told The Jordan Times that

Shell won a tender to supply the terminal

with LNG. The Cabinet is expected to

approve the agreement with the company in a few days after which the ministry will sign the

agreement with Shell.

Describing the terminal as a strategic project, Mounir Bouaziz, Royal Dutch Shell VP for the commercial region of the Middle East and North Africa, said it will reduce the government's energy spending by about $500 million annually. "The terminal is a strategic infrastructure in the gas field," he said, noting that demand on gas is expected to double globally and it will also surge significantly in the Middle East.

By 2025, the Middle East is expected to be the second largest market for consumption of gas after Asia, Bouaziz added. Estimates by the International Energy Agency indicate that there is sufficient natural gas to meet the world's needs for the next 200 years, he noted.

In a speech at Monday's event, EDAMA Association CEO Hala Zawati highlighted several projects that Jordan is implementing in the field of renewable energy and gas. Noting that the Kingdom will be one of the first countries in the region to generate power from renewable energy, she said the country's grid is expected to be supplied with power generated from renewable energy plants in less than 18 months.

EDAMA -- Arabic for sustainability -- is a local business association that seeks "innovative solutions for energy and water independence and productivity", according to its website.




ROC farms in to Production Sharing Contract offshore Malaysia Source: Roc Oil

Roc Oil Company has announced the farm in to a Production Sharing Contract (PSC) which includes three

fields D35, D21 and J4 (Fields), located offshore Malaysia in water depths of approx. 50 metres. The Fields

are currently 100% owned and operated by PETRONAS Carigali and ROC has farmed into a 50%

participating interest. The Fields are in production with a combined daily oil rate of approx. 10,000 bopd

and gas sales of approx. 17 mmscf/d gross working interest. ROC’s economic interest (50%) of the 2P

reserves from the Fields is 8.7 mmboe.

ROC’s Chief Executive Officer Mr Alan Linn said: 'The farm in is an excellent fit for our business and in

line with our Asian development strategy, we expect the Fields to become cornerstone development assets

within our growing regional portfolio. The Fields, particularly D35, contain material in place oil and gas

volumes, and overall field recovery is expected to benefit significantly from the introduction of secondary

and tertiary recovery technologies. The fields provide a portfolio of immediately bookable reserves plus

contingent and prospective resources, which combined materially add to and extend the reserves and

resources life of ROC.




The farm in agreement includes amendments to the existing PSC effective from 1 January 2014 until

December 2034. The PSC terms are designed for field redevelopment and enhanced oil recovery (EOR) to

commercially encourage progressive incremental oil development over the full life of the PSC.

ROC’s experience in the redevelopment of the Zhao Dong fields, offshore Bohai Bay, China, is a good

analogy for the redevelopment potential of the Fields. Since 2006, ROC has doubled the recoverable

reserves in Zhao Dong with a combination of reservoir development optimisation; facilities debottlenecking;

capacity enhancement and the introduction of low cost drilling for production and injection wells designed

to maximise recovery from compartmentalised reservoirs. PETRONAS Carigali and ROC will work

together to unlock the Fields’ redevelopment potential and our track record has been key in bringing this

significant redevelopment opportunity to ROC.”

Farm In Terms

Key terms in the agreements are summarised below:

• US$25 million plus a carry with a 50% participating interest of US$80 million for the project spread over

Phases 1 and 2.

• The project will be delivered by an Integrated Project Team comprising personnel from ROC and PETRONAS

Carigali. PETRONAS Carigali will continue to be the Operator of the PSC and retains responsibility for

operations and maintenance of the Facilities. PCSB has appointed ROC as the Project Development

Manager, responsible for subsurface management, well engineering, new facilities projects and project

execution.

About the Project

The Fields are located offshore Malaysia. D35 is the largest of the three fields with the longest production

history and represents a significant brownfield redevelopment project. Within the D35 field boundary there

is evidence of significant appraisal and near field exploration potential. J4 and D21 are satellite producing

assets with similar potential and together they comprise the D35, J4 and D21 PSC.

The proposed redevelopment project consists of distinct phases:

1. Phase 1 Redevelopment – commencing in early 2014 is designed to increase oil production rate and

enhance the Fields production potential through a series of intervention activities and facility

debottlenecking projects. The Phase 1 activities include an agreed work scope and are expected to

contribute approximately 17.4 mmboe of 2P gross economic entitlement (ROC net 50%: 8.7 mmboe) from 1

January 2014. Phase 1 has a minimum work commitment of US$70 million gross and an estimated total

capital investment requirement of up to US$250 million gross, operating costs associated with Phase 1 are

expected to be approximately US$22/boe.

2. The Phase 2 EOR Project is expected to significantly expand the production and overall recovery potential

from the Fields by accessing 2C Contingent Resources of 79.6 mmboe gross economic entitlement reserves

(ROC net 50%: 39.8 mmboe). The Phase 2 project is subject to a Field Development Plan (“FDP”) decision,

following completion of a series of studies designed to prove the reservoirs’ responses to re-pressurisation

and tertiary recovery. Completion of the study work and the subsequent FDP approval process is planned

during 2015. Phase 2 has a minimum work commitment of US$50 million gross and full phase 2

redevelopment cost estimates will be refined during the study period.

In addition, the project also offers exploration opportunities, initial assessment of the Best Estimated

Prospective Risked Resources associated with these fields is approximately 12mmboei (ROC net 50%) and

requires further evaluation, however, one well is already under consideration for drilling in 2015.




Petronas to re-design Angsi Chemical Enhanced Oil Recovery project http://www.2b1stconsulting.com/petronas-to-re-design-angsi-chemical-enhanced-oil-recovery-project/

Petronas, the Malaysia national oil company (NOC) and the super major ExxonMobil are considering to re-design the Angsi Chemical Enhanced Oil Recovery project from the original CEOR vessel concept into an onshore treatment plant at Terengganu on the East Coast of Malaysia Peninsula.

Since 2012, Petronas and ExxonMobil are investigating solutions to maintain the plateau production and expand the lifespan of the Angsi oil and gas field in the South China Sea. Located 160 kilometers offshore Terengganu on the East Coast of the peninsula, Angsi is a strategic field for Petronas since the first production in 2001.

In this Angsi oil and gas field the working interests are shared 50/50 between Petronas and ExxonMobil, with Petronas acting as the operator. Malaysia the recovery rate of the the crude oil from the in-place reserves is ranging between 30% and 40%. Therefore Petronas is now targeting a 50% average recovery rate aligned with other companies. Through the Angsi full field development project, Petronas and ExxonMobil are expecting to recover:




- 1.4 trillion cubic feet (tcf) of natural gas - 160 million barrels of crude oil. To boost the recovery rate, Petronas is willing to deploy the chemical enhanced oil recovery techniques to all the maturing fields such as Angsi. This technology relies on a smart mixture of alkali-surfactants-polymers (ASP) diluted in soft water.

In this process, the alkali-surfactants-polymers mixture as well as the soft water require a sophisticated chemical and desalination treatment. The performances of the CEOR depends directly from the quality of chemical mixture and water treatment process. Because of the distance from shore, Petronas and ExxonMobil completed a front end engineering and design (FEED) work to operate this chemical and water treatment process offshore with a purposely converted CEOR vessel.

Petronas to award Angsi CEOR new FEED soon

MMC Oil & Gas Engineering and Water Standard completed this FEED work for the topsides in 2012. At the end of this Angsi CEOR vessel FEED work the topsides required for the chemical and water treatment ended up at 7,000 tonnes instead of the originally estimated 4,000 tonnes.

This significant weight different impacted directly the size of the carrier to be converted into CEOR vessel, thus on its cost and the cost of the entire Angsi CEOR project. With a 15 days storage capacity of the ASP additives and 150,000 barrels per day (b/d) of water injection the Angsi CEOR project jumped significantly above the first estimated $1 billion capital expenditure.

Even though this Angsi CEOR vessel was due to run four years in Angsi before being transferred to the Shell and Petronas St Joseph oil and gas field offshore the Sarawak Province, the additional costs are compromising the value of the project. In addition the Shell St Joseph CEOR vessel does not need the Angsi CEOR oversize.

As a first conclusion Shell decided to go on its own with a fit for purpose St Joseph

CEOR vessel. In this context, Petronas and ExxonMobil have decided to rethink the conceptual design of this Angsi CEOR project around onshore facilities to be located in Perengganu.

This onshore solution offers more flexibility to install the ASP additives preparation and water desalination units but it requires to transport the chemical mixture from Perengganu to the Angsi oil and gas field through a subsea 130 kilometers pipeline. Anyway since the performance of the recovery rate is depending on the quality of the chemical and water mixture, this onshore solution rises some questions about the stability of this mixture after 130 kilometers pipelines transportation.

With such critical questions, Petronas and ExxonMobil are evaluating new FEED offers for this onshore Angsi CEOR project to be awarded on this second quarter 2014. The FEED work on this Angsi full field development alternative solution should take six months, postponing the final investment decision (FID) for Petronas and ExxonMobil to the end of 2014 for first operations of the onshore Angsi CEOR project in 2016.




Five states and the Gulf of Mexico produce more than 80% of U.S. crude oil http://www.eia.gov/todayinenergy/detail.cfm?id=15631

Five states and the Gulf of Mexico supplied more than 80%, or 6 million barrels per day, of the crude oil (including

lease condensate) produced in the United States in 2013. Texas alone provided almost 35%, according to preliminary

2013 data released in EIA's March Petroleum Supply Monthly. The second-largest state producer was North Dakota

with 12% of U.S. crude oil production, followed by California and Alaska at close to 7% each and Oklahoma at 4%.

The federal offshore Gulf of Mexico produced 17%.

Total U.S. crude oil production grew 15% in 2013 to 7.4 million barrels per day. Texas and North Dakota

led that growth, with their crude oil outputs each increasing 29% from 2012. Production gains in both states

came largely from shales, especially the Eagle Ford in Texas and the Bakken in North Dakota. In the three

years since 2010, North Dakota's crude oil output has grown 177% and Texas's output 119%, the fastest in

the nation.

Three other states that were among the top 10 U.S. producers in 2013 also experienced production growth

rates above 20% during the past three years. Colorado, which overlies part of the Niobrara Shale, had 93%

growth in production from 2010 to 2013; Oklahoma, with the Woodford Shale, had 62% growth; and New

Mexico, which shares the Permian Basin with Texas, had 51% growth.

Crude oil is produced in 31 states and two offshore federal regions—the Gulf of Mexico and the Pacific

Coast. Of those 33 producing areas, 10 supply more than 90% of U.S. output. While 9 of those top 10 areas

were also among the top 10 producers five years ago, their relative contributions have changed.

North Dakota has risen from the seventh largest oil producer to the third. The Gulf of Mexico, Alaska, and

California, which together in 2008 supplied nearly half of U.S. crude production mainly from conventional

oil reservoirs, provided less than one-third of national output in 2013. Output in those areas has declined at

the same time that overall national production has expanded.




Japan’s Nippon ( LNG shipper ) Plans Huge LNG Investment LNG World News Staff, April 1, 2014; Image: NYK

Japan’s Nippon Yusen Kaisha (NYK), one of the largest shipping companies in the world, said it aims to invest JPY530bn (approximately $5.13bn) in LNG and the offshore business over the next five years.

NYK said in the company’s new medium-term management plan that it “realizes strong business portfolio

against changing market conditions by utilizing business chances such as LNG (liquefied natural gas)

transportation and offshore business, and strengthens financial ground which enables large-scale

investment, and sets out NYK Group’s sustainable growth.”

The company plans to expand its fleet of

LNG tankers from 67 at present, including

jointly owned vessels, to 100 by 2019.

NYK is also looking to develop a new

business related to LNG as a fuel for ships.

Yasumi Kudo, president NYK .

Setting out its mid-term management plan

NYK, much like compatriot Mitsui OSK

Lines (MOL), said it would be focusing on

LNG and offshore. Setting out total

investments of JPY790bn over the next five

years the shipowner said: “NYK realises

strong business portfolio against changing

market conditions by utilising business

chances such as LNG transportation and offshore business, and strengthens financial ground which enables

large-scale investment, and sets out NYK group’s sustainable growth.” Looking at the LNG sector NYK

noted the growing demand from Japan and developing countries and the removal of the shale gas export ban

by the US.

The company said it planned to expand its fleet of LNG carriers from 67 at present, including jointly owned

vessels, to over 100 by 2019. Noting shortage of highly skilled seafarers for LNG vessels it plans to develop

its training at its inhouse academy in the Philippines and other institutions. It is a looking to develop a new

business around LNG as a fuel for ships.

In the offshore sector NYK plans to expand its presence in the floating production market, with FPSOs,

FSRUs and FLNG to provide long term stable revenues. It also plans to expand it shuttle tanker fleet

through Knutsen NYK Offshore Tankers (KNOT) by seven vessels to 34.

Looking at containerships and dry bulk NYK said it plans to reinforce an asset light strategy. It aims to

reduce its containership fleet by 14 to 85 vessels over the next five years. Its owned and long term chartered

fleet will be reduced from 74 to 65 by 2019.

In the bulk shipping sector it is looking reduce its exposure in large sized vessels. The plan is to downsize

its capesize fleet 126 vessels to 100 by 2019 and post-panamax and panamax bulkers from 97 to 85.




USA: Explosion Causes Fire at Plymouth LNG Facility LNG World News Staff,+ http://earthfix.kcts9.org/energy

Williams Partners said that an explosion and fire occurred on Monday at the company’s liquefied natural gas (LNG) facility in Plymouth, Washington. The facility is owned by Williams Partners’ subsidiary Northwest Pipeline.

The facility was shut down yesterday morning. One employee was injured and four others were assessed by

medical personnel and then released, the company said in a statement.

Company officials’ initial assessment of the incident determined this was not a natural gas pipeline rupture;

rather, it occurred within the LNG storage facility. The tanks involved were about one-third full of liquefied

natural gas.

“Company officials and emergency responders late Monday were conducting a visual inspection of the

facility using remotely operated devices and are developing a plan for returning to the facility. Once it is

safe to return to the plant, we will begin a thorough investigation into the cause of the incident. Williams’

officials are working in close coordination with local emergency personnel in response to the incident and

we regret the inconvenience this has caused to our neighbors in Plymouth,” the company added.




Oil & Gas UK awards first phase of project to boost UKCS exploration to SLR Consulting Source: Oil & Gas UK

Oil & Gas UK has launched the first phase of a project to stimulate more exploration by promoting new and existing plays on the UK Continental Shelf (UKCS). SLR Consulting has been commissioned to complete a three-month preliminary study to investigate the way forward for a 21st century exploration road map – a digital perspective of petroleum geology.

Oonagh Werngren, Oil & Gas UK’s operations director, explains: 'The aim of the 21st Century Exploration Road Map is to contribute to improving exploration success and address the 50 per cent decrease in the number of wells drilled. The outcome of the study will provide industry with the specifications for a subsequent implementation project to deliver an on-line, more dynamic source of digital geological maps summarising current subsurface understanding and the hydrocarbon resources potential within key areas of the UKCS.

'The project is one of several being driven by the PILOT Exploration Task Force, which works together with the Department of Energy and Climate Change (DECC), to revitalise exploration and ensure the economic recovery of oil and gas resources from the UKCS. It aligns with the recommendations put forward by the recent Wood Report, which identifies the urgent need to evaluate new and unexplored reserves and create an up-to-date perspective of the geology of the UKCS together with tools to ensure more effective sharing of data across the industry.'

Oil & Gas UK’s fellow stakeholders supporting the initiative include DECC, the British Geological Survey (BGS), The Natural Environment Research Council (NERC), Common Data Access (CDA), exploration companies, operators and firms providing offshore services.

Hamish Wilson, SLR Consulting’s technical director, explains: 'SLR Consulting will be engaging with individuals and organisations with expertise in UKCS exploration to establish recommendations for both the geological and geographical scope and key priorities of the 21st Century Exploration Road Map. This process will enable us to define the prospective content, timing and phasing of the project which is scheduled for delivery by the end of 2015.'




BP to close Australian refinery as mega-plant competition mounts Reuters - UK Focus – (Reuters)

BP is ceasing production at its Bulwer Island refinery in Brisbane, Australia by mid 2015, blaming

competition from new mega-refineries in Asia that are cheaper to operate.

Australia's refineries, owned by BP, Royal Dutch Shell, ExxonMobil and Caltex, have mostly booked losses over several years as a higher local dollar, tighter fuel quality standards and the introduction of super-sized refineries in Asia have made them uncompetitive.

Rather than spend money on upgrading plants, BP and other majors have been looking to sell them or turn them into fuel import depots. "Market reality global refining capacity is shifting to service the energy growth areas of the globe and is doing so with very large port-based refineries," Andy Holmes, president of BP Australasia, said in a media conference.

BP said it was considering converting the Bulwer Island refinery, which dates back to the 1960s and has a capacity to produce 102,000 barrels of fuel per day, into a multi-product import terminal.

"We have concluded that the best option for strengthening BP's long-term supply position in the east coast retail and commercial fuels markets is to purchase product from other refineries," Holmes said. The shift away from refining in Australia follows reductions in refining in countries including Germany, France and Britain, where growth in energy consumption is slowing.

"If you look at the players in Australia, there are BP, Chevron and Shell and they do have refineries elsewhere in Asia outside of Australia," said Suresh Sivanandam, short-term downstream oil analyst at Wood Mackenzie

"For example, Chevron has refineries in South Korea and Thailand and Shell has Malaysia, Singapore and also Japan. They can easily meet Australia's deficit from these markets," Sivanandam said. BP employs 380 staff and 300 contractors at Bulwer. The refinery has a capacity of around 102,000 barrels per day and produces petrol, diesel, kerosene, aviation fuel, heating oil and LPG.

Asian mega refineries generally produce petrol as a by product, given the primary demand for transport fuel in the region is diesel. Shell earlier this year said it was exiting refining and marketing in Australia, selling the business for around $2.6 billion to global oil trader Vitol SA. Shell has already closed its Sydney refinery, while Caltex is due to convert its Sydney refinery to an import terminal this year.

BP's 146,000 barrel-per-day Kwinana refinery on the western coast remained a "big part" of the company's growth strategy in the Australian states of Western Australia, South Australia and Tasmania, a BP spokesman said. (Reporting by James Regan, Jane Wardell in Sydney and Florence




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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 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

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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

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spent as the Gas Operations Manager in Emarat , responsible for spent as the Gas Operations Manager in Emarat , responsible for spent as the Gas Operations Manager in Emarat , responsible for spent as the Gas Operations Manager in Emarat , responsible for

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