New base special 10 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 . Page 1

NewBase 10 March 2014 Khaled Al Awadi

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

IPR Hits Hydrocarbons in Egypt’s Gulf of Suez http://www.bedigest.com/NEWS/98325.aspx

US independent oil and gas company Improved Petroleum Recovery - IPR hit hydrocarbons while drilling on the Southwest Gebel El Zeit concession in Egypt’s Gulf of Suez. The well, the SWGEZ-5, was drilled using the ADES’s jack up rig ADM-IV under the supervision of IPR’s operational teams and the JV operating company PetroHurghada.

The well took a total of 43 days to drill, test, and complete to a total depth of 8,020 ft in the basement of the Pre Cambrian age. The well encountered a total of 107 ft of net hydrocarbon pay in Late Cretaceous age Nubia and Matulla formations, as targeted prolific producers in the Gulf of Suez. SWGEZ-5 tested naturally flowing oil at rates of 3,611 bpd and 2.9 Mscf/d, of oil and gas respectively

The company has constructed a modern three-slot platform, a 9.5 km 8-1/2 inch pipeline from platform to shore, and state-of-the art surface facilities to receive future deliveries.

IPR’s COO, Sam Dabbous, stated: “We are very pleased with the results of this new discovery and the great efforts of our technical teams. We look to replicate this successful effort in our ambitious expansion plans in 2014 to exceed internal expectations and contribute to the fulfillment of the country’s mandate to increase production.”




As part of this aggressive investment plan, IPR remains on pace to invest in 57 wells to increase production and add new reserves in 2014 between its Western Desert and Gulf of Suez assets portfolio, having now drilled 11 wells in both hydrocarbon producing provinces.

About IPR , SW Gebel El Zeit

SOUTHWEST GEBEL EL-ZEIT CONCESSION, GULF OF SUEZ, EGYPT

IPR Energy Suez, Inc. (IPR-ES), the Operator, has 44.625% Working Interest (WI) in the Southwest Gebel El-

Zeit (SWGEZ) offshore field, which covers a 30 km2 area located at the extreme south of the Gulf of Suez

(GOS). Devon Energy, Egypt was the

previous operator before the acquisition

by IPR-ES in January 2007. The

Concession operates under Egypt’s

Production Sharing Agreement

(PSA). The SWGEZ-2 discovery well

tested a combined daily production of

6,800 BOPD from the Lower Cretaceous

Mutalla/Nubia sandstones. The field is

being operated under the Joint Venture

(JV) Operating Company, Hurgada

Petroleum Company (PetroHurgada),

which was formed in 2007. First oil

production commenced in the 3RD Q 09

with the completion and installation of a 3-slot platform, offshore & onshore facilities which have been

commissioned for start-up. Significant upside potential was discovered in the Lower Cretaceous Mutalla-Nubia

sandstones based on the most current 3-D seismic interpretation and SWGEZ-2 well. The Nubia sandstone is

the most prolific producing reservoir in the GOS and surrounding fields.

The Improved Petroleum Recovery Group of Companies (IPRGOC) constitutes a synergy of specialized oil and

gas operating companies with extensive experience and resources in exploration and production, reservoir

management, and field development, oilfield services and consulting services including training and technology

transfer. IPRGOC is

staffed with highly

experienced and

resourceful professionals

including geophysicists,

geologists, engineers,

certified public

accountants, systems

analysts, and financial

controllers. These

professional staffs have

worked in teams on

many projects worldwide.




Adnoc signs Dh120m rig deal with fleet size set to double www.thenational.ae/business/energy/adnoc

Abu Dhabi National Oil Company has signed a Dh120 million deal for a new rig as it doubles the size of its fleet. The rig, to be built in the UAE by the American company National Oilwell Varco, is to serve Adnoc’s main onshore operator, which is working to increase output to 1.8 million barrels per day (bpd) in 2017 from around 1.5 million bpd today.

Overall, the emirate is targeting a rise in pumping capacity to 3.5 million bpd from 3 million today, which would give the Opec member more leeway to maintain a cushion of spare capacity. To reach that target, Abu Dhabi needs to more than double its rig count to 88 from last year’s

40, say Adnoc officials.

The agreement was signed yesterday in Abu Dhabi by National Oilwell Varco and National Drilling Company (NDC), Adnoc’s rig subsidiary. “NDC is committed to

sustainable progress and continuous growth,” Abdalla Saeed Al Suwaidi, the chief executive, said in a press release published by the state news agency Wam.

He said that an earlier rig ordered from National Oilwell Varco, also built in the UAE, has already drilled its first well. On Friday, the most recent day for trading, shares of National Oilwell Varco rose 1 per cent to $79.06.

Last month, NDC took delivery of a jackup rig from the local producer Lamprell, one of six offshore rigs scheduled for delivery this year. Experts say the Middle East as a whole needs to double its rig fleet to meet its expansion targets.

Of the 88 rigs that Abu Dhabi hopes to have in service by 2018, more than half will be for onshore fields, where challenging techniques are required to maintain output at mature fields. Newcomers such as Korea National Oil Corporation and Wintershall are also exploring undeveloped sites.

Foreign companies are now awaiting the results of Adnoc’s auction of its prized onshore fields, which counted four legacy oil majors among its shareholders until January.




Masirah Oil strikes oil at second well BY BUSINESS REPORTER , TIMES OF OMAN

The second exploration well of Masirah Oil, an associate of Malaysia-based Hibiscus Petroleum, has achieved a light oil flow rate of up to 3,000 barrels per day in block 50 offshore concession

area east of Oman . Masirah Oil said that during a 48-hour test, hydrocarbons flowed up to the surface and the well achieved a light oil flow rate of up to 3,000 stock tank barrels per day with no water production. The test flow rates were "very encouraging" and that "this was the first offshore oil discovery in the east of Oman after more than 30 years of exploration activities," according to a company statement. "The second exploration well produced oil at high and stable rates and is currently under suspension. The successful testing will allow us to deepen our knowledge and understanding of the offshore geology in the east of Oman and assist in our decisions about further exploration, appraisal and development plans for this 17,000-sq-km block," said Masirah chairman Hans Lidgren.The objective behind the well, which was drilled to its final depth into the Cambrian formation, was to prove the presence of movable hydrocarbons and a working petroleum system within the block Several zones in the well showed evidence of hydrocarbon presence, the press statement added. "We are

excited to continue to collaborate closely with the Ministry of Oil and Gas in Oman and our ultimate shareholders, Rex International Holding Ltd, in Singapore, Hibiscus in Malaysia and Petroci Holding, the national oil company in Cote D'Ivoire," Lidgren added.

Masirah Oil also said that the Ministry of Oil and Gas has approved the company's entry into the second phase of the company's 'minimum work obligation' starting from March 23, 2014, with the fulfillment of the commitment specified in the exploration and production sharing agreement for this phase. "We acquired the concession in February 2011 and we have completed the obligations within the stipulated time-frame with positive results. "The data acquired from the drilling of the two initial exploration wells and the subsequent discovery of hydrocarbons have deepened our

understanding of the offshore geology east of Oman," Lidgren further added . Masirah Oil is 64 per cent and 36 per cent owned by Lime Petroleum Plc and Petroci Holding, respectively. A month ago, Hibiscus said the second exploration well found evidence of hydrocarbons, which had to be sent for testing.




GCC insurance growth tops other economies; focus on profit needed By Santhosh V Perumal/Gulf-Times Business Reporter

Growth in the Gulf Cooperation Council (GCC) insurance industry outpaces that of developed and other emerging economies, expanding as fast as Brazil and China but insurers ought to focus on

profits than top line, according to A M Best, an insurance rating entity.

Gross premiums written (GPW) in the GCC had a compound annual growth of 21% during 2002-12, the same as Brazil and China, while Russia was at 18% and India at 16%, A M Best said.

“A market that is growing at 21% enables companies to more easily sustain the shocks associated with emerging markets,” it said, adding for Far East and developed markets, the

growth was 14% and 4% respectively. “Growth in the GCC will remain higher than in developed markets but lower than in the recent past, with a big portion of the premiums still coming from motor and medical insurance,” it said, adding insurers will now have to focus on profitability rather than top-line growth.

Although relative to other emerging markets, the GCC markets are generating good profits, albeit on a small scale; they have been lagging in terms of life insurance profit owing to little business in the segment. Finding that the major drivers of profitability in the GCC market have historically been investment income and profits of non-life; the report said in the past five years, the aggressive investments by many regional insurers led to capital losses on their real estate and equity holdings.

General economic growth and public spending in the GCC are likely to increase in the short to medium term, providing further impetus for the GCC insurers. But much of their recent growth has come from compulsory covers. Observing that premium volumes in the GCC are heavily skewed to non-life, the report said the sector had an 86% market share, most of which came from medical and motor, the lines that saw the greatest impact from the compulsory coverage in the region.

“Although it is a significant part of the overall non-life market, the contribution of motor insurance to total premium is smaller in the GCC than in developed or other emerging markets. That tends to point toward significant underinsurance and lower rates in some of the GCC markets,” it said, highlighting that medical and motor lines account for about 59% of GCC non-life premium.

The importance of motor insurance will increase, especially as several GCC markets go through a period of re-pricing and as more uninsured vehicles join the insured population. The importance of medical insurance is higher in the GCC than in other markets, comprising 34% of non-life premiums, far greater than the 7% level in developed markets.

However, the A M Best report said retention levels are likely to edge upward as companies find it increasingly difficult to cede business on some of their less profitable lines, even as the management expense ratio improved but remains relatively high, due to the lack of economies of scale.




Drydocks World delivers second Modular Capture Vessel – Eagle Louisiana http://www.drydocks.gov.ae/en/news/eagle.louisiana.aspx

Drydocks World, the leading provider of maritime and offshore services to the shipping, oil, gas and energy

sectors, announced the completion and delivery of Eagle Louisiana, the second of two Modular Capture

Vessels (MCV). The first MCV, Eagle

Texas, sailed away from Drydocks

World’s yard recently. The vessels

are the world’s first MCVs. Drydocks

World converted the AFRAmax tanker

for Singapore-based AET, a global

leader in petroleum shipping, which

has a 20-year agreement with Marine

Well Containment Company (MWCC)

for the operation of the MCVs. Ten

world-renowned companies form

MWCC: Anadarko, Apache, BHP

Billiton, BP, Chevron, ConocoPhillips,

ExxonMobil, Hess, Shell and Statoil -

all committed to safe deepwater

drilling in the U.S. Gulf of Mexico. The

MCVs will operate as normal tankers in the U.S. Gulf of Mexico and will be outfitted and deployed for

containment services in the event of a deepwater well control incident in the region.

“We have proven once again our exemplary project management capabilities, engineering solutions, commitment to the industry and the drive to face challenges in delivering pioneering projects with world leaders like AET and MWCC,” said H.E. Khamis Juma Buamim, chairman of Drydocks World & Maritime World. “This is a pioneering project. A newly-fabricated subsea containment assembly will attach to risers and other containment equipment to direct the flow of fluids to the MCVs for processing and storage. We are delighted to have been associated with this ground-breaking project. This accomplishment also represents two million man-hours without a single Lost Time Injury, which together with the four million man-hours on Eagle Texas is quite an outstanding achievement.”

The work scope of the shipyard included installing components such as four retractable azimuth thrusters, one tunnel bow thruster, new machinery spaces, diesel generator sets and associated tanks, auxiliaries, switchboards, and electrical distribution equipment. The main engine was modified for Controllable Pitch Propeller (CPP) operation and a control system was added for dynamic positioning, power management and equipment monitoring. Structural support stools and foundations were added for the future installation of topsides processing modules, a turret, flare tower, communications equipment, control facilities and other miscellaneous equipment.

The amount of steel used for the Eagle Louisiana project is 2530 tonnes with 19.68 km of pipes and electrical cables of 292 km also utilized. The MCVs will individually have 700,000 barrels of liquid storage capacity, and can process, store and offload the liquids to shuttle tankers. The process equipment will separate the liquids from gas, safely store the liquids and flare the gas. Then the liquids will be offloaded to shuttle tankers which will transport the liquids to shore. With the delivery of the MCVs, Drydocks World has created a name for itself in sophisticated vessel conversions.




Swala secures partner By: Bianca Bartucciotto , http://www.upstreamonline.com/live/article1354672.ece

Perth-based Swala Energy has signed a binding farm-out agreement with an unnamed

international integrated oil and gas company. The farminee will take a 25% working interest in

Block 12B in Kenya, which will see Swala free-carried through two exploration wells.

Swala’s costs will be covered through a farm-in agreement, which will cover $2.7 million of a 2D seismic

survey and $7.5 million for a first exploration well. The farminee will pay all costs associated with the drilling

of a second exploration well of a cap of up to $7.5 million subject to positive results from the first well.

A number of conditions will have to be met for the completion of the farm-in agreement, including

approval from the Kenyan government. Once the agreement has closed, Swala retain a 25% net

working interest in Block 12B, while the farminee held 25% and Tullow Oil held a 50% net working

interest and will retain operatorship.

Swala chief executive David Ridge said the farm-out was the most cost-effective method of adding value to the company’s balance sheet. “This will allow the Company to focus its energies and resources on existing operated assets and the continued growth of the company’s portfolio.”

About Sawala Assets Block 12B, Kenya :- Block 12B is located on the Nyanza Rift, a part of the East African Rift System (EARS). The block is about 300km south of the recent Ngamia oil discovery in the Lokichar basin. The Nyanza Rift is an offshoot from the main eastern branch of the EARS. In Oct/Nov 2012 the company, with its Joint Venture partner, carried out an airborne gravity-magnetic survey over Block 12B. The new gravity data confirms an area of pronounced gravity low over the Nyanza rift. Preliminary computer modelling and interpretation of the gravity and magnetic data support the view that the Nyanza Rift is underlain by a sedimentary basin of up to two to three kilometres thick.

The results of the work carried out by the Joint Venture during Year 1 of the work programme allowed the partners to decide to proceed into Year 2 and to acquire seismic data over the area in conjunction with a magnetic-tellurics (MT) survey that is expected to commence during August. The seismic programme is expected to be carried out during 4th Quarter 2013. The seismic data will be used to identify structures for future drilling.




Indonesia: Pertamina to spend US$400 million on drilling activities in 2014 Source: Jakarta Post

Pertamina EP, the upstream subsidiary of state-owned oil and gas giant PT Pertamina, will allocate US$400 million to drilling activities this year to seek new sources to maintain production. Pertamina’s other subsidiary, PT Pertamina Geothermal Energy (PGE), allocated US$250 million in capital expenditure (capex) this year to finance eight projects related to the development of geothermal resources.

Pertamina EP operation and production director Satoto Agustono said the allocated funds would be used to finance drilling at up to 87 development wells nationwide. 'Most of the wells are located in the eastern part of Indonesia,' he said, adding that the firm had spent about $460 million on drilling 111 wells last year. Satoto said the company was also planning to work on around 12 to 14 exploration wells, with each well roughly costing up to $15 million.

Pertamia EP’s working areas, which span up to 113,613 sq kms, are divided into five assets. The first asset consists of Rantau, Pangkalan Susu, Lirik, Jambi and Ramba; the second asset Prabumulih, Pendopo, Limau and Adera; the third asset Subang, Jatibarang and Tambun; the fourth asset Cepu; and the fifth asset Sangatta, Bunyu, Tanjung, Sanga-sanga, Tarakan and Papua.

The company, whose oil production is around 119,000 barrels per day, is targeting to produce 128,000 barrels of oil per day (bopd) this year and 1,071 million standard cubic feet of gas per day. The company’s oil production was 120,600 bopd last year, lower than its target of 123,600 bopd. 'For gas, we are currently almost at 100 percent of the target,' Satoto said, adding that the firm might change its target pending the production level in the first half.

In the state budget, national oil production is targeted to reach 870,000 barrels per day. But contractors could only propose a combined production of 804,000 bopd, according to figures from Upstream Oil and Gas Regulatory Task Force (SKKMigas), prompting the government to consider a revision to 820,000 bopd.

Meanwhile, Pertamina Geothermal Energy president director Rony Gunawan said the eight geothermal power plant projects, which included drilling activities and infrastructure development, were located in Kamojang and Kraha in West Java; Ulubelu in Lampung; Sibayak in Brastagi, North Sumatra; Lumut Balai in Muara Enim, South Sumatra; Hulu Lais in Bengkulu; Kotamobagu in North Sulawesi; and Sungai Penuh in Jambi.

'The 35-megawatt [MW] Kamojang Power Plant Unit V is still under construction, while the Ulubelu and Kraha power plants are expected to be operational in 2016,' Rony said in Bandung on Wednesday, adding his firm targeted to produce 80 MW of electricity by 2018. The company spent $150 million in capex in 2012, while it faced a hurdle last year in its project in Bolang Mongondow, North Sulawesi, because of its proximity to a protected forest, resulting in an extra mile between the project site and the geothermal source, said Rony. The Geothermal Law classifies geothermal field developments as mining activities, meaning development of geothermal fields in forest conservation areas violates the Forestry Law.




Otto Energy Updates on Galoc Oil Field Reserves offshore the Philippines by Otto Energy Ltd.Press Release

Otto Energy Ltd (Otto) provided Monday an update on the Galoc oil field reserves in Service Contract SC14-C, approximately 40 miles (65 kilometers) north west of Palawan Island, offshore the Philippines as at Jan. 1. The operator of the Galoc oil field, Galoc Production Company WLL, a wholly owned subsidiary of Otto, has commissioned an annual review of remaining oil reserves from RISC, an independent consulting firm.

The annual review has resulted in an adjustment of 2P Reserves of less than 1 percent caused by a mixture of technical and economic factors (including oil prices). A detailed breakdown of Reserves is shown in Appendix A.

Since the completion of the Phase II development in December 2013, production has performed in line with expectations - this performance is expected to continue. Three cargoes have been lifted from the field since December 2013 with a further lifting scheduled around the end of the March 2014 quarter. The Galoc oil field is expected to remain in production beyond 2020 based on the Galoc Phase I and Phase II well configuration.

Otto's CEO Matthew Allen said "Galoc is a key asset for Otto, delivering valuable cashflow to fund future growth opportunities. Otto's investment in Galoc Phase II in 2013 has delivered a substantial increase in production, with current production rates around 9,700 barrels of oil per day (bopd), or 3,200 bopd net to Otto, and Otto's operatorship of this successful development demonstrated the organisations strong project execution capabilities. We continue to seek additional opportunities to expand the Galoc oil field with further infill drilling.”

Appendix A: Galoc Oil Field Reserves Update

Estimated Ultimate Recovery (EUR) and Reserves

• EUR at Jan. 1, 2013: 21.70 MMBbl* (1P); 25.40 MMbbl (2P) • EUR at Jan. 1, 2014: 21.51 MMbbl (1P); 25.06 MMbbl (2P) • Changes in EUR: -1 percent (1P); -1 percent (2P) • Cumulative Production to Jan. 1, 2014: 11.66 MMbbl (1P); 11.66 MMbbl (2P) • Gross Field Reserves at Jan. 1, 2014: 9.85 MMbbl (1P); 13.40 MMbbl (2P) • PSC Contractor Entitlement Reserves at Jan. 1, 2014: 8.34 MMbbl (1P); 11.42 MMbbl (2P) • Otto Net Entitlement Reserves at Jan. 1, 2014: 2.75 MMbbl (1P); 3.77 MMBbl (2P)

PSC Entitlement Reserves (ER)

• ER Jan. 1, 2013: 1P - 10.20 MMbbl (Gross), 3.37 MMbbl (Net); 2P - 13.10 MMbbl (Gross), 4.32 MMbbl (Net)

• Entitlement Production: 1P - minus 1.47 MMbbl (Gross), minus 0.48 MMbbl (Net); 2P - minus 1.47 MMbbl (Gross), minus 0.48 MMbbl (Net)

• Additions/Substractions: 1P - minus 0.39 MMbbl (Gross), minus 0.13 MMbbl (Net); 2P - minus 0.21 MMbbl (Gross), minus 0.07 (Net)

• ER Jan. 1, 2014: 1P - 8.34 MMbbl (Gross), 2.75 MMbbl (Net); 2P - 11.42 Mmbbl (Gross), 3.77 MMbbl (Net)

* MMbbl: million barrels --- 1P: Proved Reserves --- 2P: Proved and Probable Reserves




India's IOC to Acquire 10% Stake in Petronas' Canadian LNG

Export Project , by Petroliam Nasional Berhad Press Release

Petroliam Nasional Berhad (Petronas) reported Friday that the company, Progress Energy Canada Ltd. (Progress Energy) and Pacific NorthWest LNG Ltd. (PNW LNG) have signed transaction agreements whereby Indian Oil Corporation Ltd., through its affiliates, will acquire a 10 percent interest in Progress Energy’s LNG-destined natural gas reserves in northeast British Columbia and in the proposed PNW LNG export facility on Canada’s West Coast. As part of the transaction, Indian Oil Corporation Ltd. has also agreed to offtake 1.2 million tons of liquefied natural gas (LNG) per annum, which represents 10 percent of the LNG facility’s production, for a minimum period of 20 years.

This transaction builds upon the two previously announced transactions in 2013that saw JAPEX Montney Ltd. acquire 10 percent and PetroleumBRUNEI acquire three percent. Following the closing of the Indian Oil Corporation Ltd. acquisition, Petronas will hold 77 percent of the integrated project and will continue to work with potential customers and partners to secure markets for LNG.

“Each of these major investments in British Columbia underscores the globally attractive and competitive opportunities for Canadian natural gas in the Pacific Rim,” said Michael Culbert, president & CEO of Progress Energy, of Calgary. “We are assembling an industry-leading project and our growing partner list adds momentum to

building an exciting new energy export sector for Canada,” added Greg Kist, president of Pacific NorthWest LNG, of Vancouver.

Progress Energy Canada – Building a World-Class Inventory of Natural Gas Resources

Over the past year, Progress Energy and its North Montney Joint Venture (NMJV) partners have more than tripled their natural gas reserves to support LNG exports from northeast British Columbia. An independent 2013 year-end evaluation has estimated the NMJV total proven and probable reserve (2P) additions in 2013 to be 0.96 billion barrels of oil equivalent (boe) or 5.76 trillion cubic feet of equivalent natural gas (Tcfe), a 211 percent increase from the 2012 year-end balance of 0.45 billion boe or 2.68 Tcfe. This results in total 2P reserves at year-end 2013 of 1.39 billion boe or 8.35 Tcfe. In addition, a contingent resource assessment was also completed resulting in a best case contingent resource of 24.7 Tcf with approximately 65 percent of the NMJV land delineated to date.

“This is tremendous accomplishment. In one short year, delineation drilling has established more than half of the 15 Tcf of proven and probable reserves inventory that we plan to have confirmed in order to supply the first 20 years of LNG exports from Pacific NorthWest LNG,” Culbert said.

As the most active driller in British Columbia, Progress plans to continue with its ambitious capital investment in 2014, operating an average of 25 rigs to drill an estimated 170 wells. This activity level and investment has resulted in an estimated 2,500 to 3,000 direct and indirect jobs supporting an LNG export sector in British Columbia.

“Our employees and contractors executed a very safe and effective program that marked important




milestones in 2013. We are on track to substantiate the natural gas reserves that will support developing our planned multi-billion dollar, long-term development exporting LNG to Asian customers. As we strive to build the natural gas resource base necessary to supply the proposed PNW LNG project, we will work tirelessly to ensure safe and environmentally sound operations at every step,” Culbert said.

Pacific NorthWest LNG – Securing Regulatory Approvals in 2014

The development of PNW LNG's facility is progressing steadily with plans to reach a final investment decision by the end of 2014 and targeting first LNG exports in late 2018. The competitive front-end engineering and design (FEED) phase, involving three major engineering and construction consortia, is well advanced and PNW LNG is targeting the third quarter of 2014 for the receipt and evaluation of the engineering, procurement, construction and commissioning (EPCC) bids. The design is for two trains of approximately 6 million tonnes per annum each with the option for a third train of the same size.

This year, the LNG facility planned near Prince Rupert, B.C. will undergo a thorough environmental review by the Canadian Environmental Assessment Agency and the B.C. Environmental Assessment Office. This review includes ongoing consultation with stakeholders and First Nations. PNW LNG has held numerous open houses where local residents and affected stakeholders have had the opportunity to learn about the LNG project benefits and voice concerns.

“We are pleased to have received our export license from Canada’s National Energy Board in December 2013 and we continue to work to complete a robust environmental review,” Kist said.

“With a new office in Vancouver and the December opening of our community office in Prince Rupert, we are hiring staff and keeping our communities informed with project updates as our plans unfold.”

Prince Rupert Gas Transmission – Pipeline Infrastructure Advances

To connect the partners’ natural gas reserves in northeast British Columbia with the LNG plant on the West Coast, TransCanada Corporation is advancing plans to build two pipelines – the North Montney Mainline project into the natural gas fields as well as the Prince Rupert Gas Transmission (PRGT) pipeline to the coast. The 89-mile (305-kilometer) North Montney Mainline application has been made to the NEB. This regional pipeline would run from the Groundbirch area, about 21 miles (35 kilometers) southwest of Fort St. John, B.C., north to gather natural gas through the NMJV operations along the Alaska Highway. PRGT would then transport the natural gas to the Prince Rupert area along a 559-mile (900-kilometer) route that is under consideration and selection with input from First Nations and community stakeholders.

About Progress Energy Canada

Progress Energy Canada, a leader in Canadian natural gas development, is building upon its history of performance excellence in North America to pioneer new infrastructure for delivering LNG to Pacific Rim markets. Producing more than 400 million cubic feet equivalent of natural gas per day in northeast British Columbia and northwest Alberta, Progress Energy is serving Canadian markets and ambitiously expanding productive capacity on its extensive Montney land holdings in preparation for the opening of new LNG markets in Asia. Progress Energy is wholly owned by Petronas of Malaysia, a global leader in LNG and the majority owner of Vancouver-based Pacific NorthWest LNG Ltd. Progress and Pacific NorthWest LNG are helping craft a bright new future for Canada’s energy exports.




About Pacific NorthWest LNG

Pacific NorthWest LNG is planning to build a world-scale LNG export facility on Canada’s West Coast at Lelu Island near Prince Rupert, British Columbia. The proposed facility will comprise an initial development of two LNG trains of approximately 6 million tonnes per annum (MTPA) each and a subsequent development of a third train of approximately 6 MTPA. The proposed facility would liquefy and export natural gas produced by Progress Energy Canada in northeastern British Columbia. Pacific NorthWest LNG is committed to generating new economic and social benefits for the local community and First Nations, British Columbia and Canada in an environmentally safe and sustainable manner. Petronas of Malaysia is the majority owner of Pacific NorthWest LNG.

Despite holding a relatively small share of the world's proven natural gas reserves, Canada ranks third in dry natural gas production. It is the fourth-largest exporter of natural gas, behind Russia, Norway, and Qatar. Though Canada has plans to export liquefied natural gas (LNG), all of Canada's current natural gas exports are sent to U.S. markets via pipeline. The proportion of Canada's natural gas production that is devoted to meeting domestic requirements has risen in recent years, while net exports to the United States have fallen.




Shell and SSE go on world-scale UK Carbone Capture and Storage project http://www.2b1stconsulting.com

The Royal Dutch Shell (Shell) and the Scottish utility company SSE Generation Ltd (SSE) have selected the french engineering company Technip to provide the front end engineering and design (FEED) work for the construction of the world-scale fully integrated carbon capture and storage (CCS) project to be developed at the gas-fired Peterhead Power Station in conjunction with the Goldeneye field in Scotland, UK.

SSE is one of the largest utility company in the UK and Ireland operating power generation facilities and large network of distribution for electricity and gas across both countries. Located approximately 50 kilometers north of Aberdeen, along the northeast coast of Scotland, Peterhead is ideally posted at the crossroad of multiple pipelines system to receive the gas to power the generation of electricity and to export the emitted carbon dioxide (CO²) back to the available reservoir in the North Sea offshore UK.

For this reason, the UK Government had selected in May 2011 the Peterhead Power Station as a

potential candidate for a pilot project of carbon capture and storage in the UK to be supported by the European Investment Bank to reduce carbon dioxide emissions in Europe.

In November 2012, the UK Government and the local Industry CCS Cost Reduction Task Force published their recommendations to turn the CCS solution financially viable for the gas-fired and coal-fired power plants in the country considering all the new technologies to be developed in that purpose.

On its side Shell has accumulated a unique expertise in capture, transport and storage of CO² with projects in Mongstad, Norway, Quest in Canada, or Gorgon in Australia.




With Peterhead CCS, Shell and SSE will take a leap as this project will be the first world-scale carbon capture and storage fully integrated solution to run commercially.

SSE Peterhead to store CO2 in Shell Goldeneye field

From the feasibility study made by Shell, this Peterhead CCS project should include:

- Capture of CO² at the post-combustion level of a 385MW gas turbine unit in Peterhead Power Station . - 25 kilometers export CO² pipeline from Peterhead to an existing offshore pipeline in the North Sea . -Compression unit to push CO² to Shell Goldeneye offshore plaform 100 kilometers away. -Gas Injection units to store the CO² in the Goldeneye gas depleted reservoirs 2.5 kilometers beneath the seabed.

- Modification of the existing facilities. - Offsites and utilities

Peterhead CCS is one of the two projects finally selected by the UK Government to demonstrate the technical and commercial viability of the carbon capture and storage solution to reduce CO² emissions. With Peterhead CCS Project, Shell and SSE expect to reduce the power station emissions by 90%, representing 10 million tonnes of CO² saved from the atmosphere. In awarding the FEED contract to Technip, Shell and SSE are planning to start engineering, procurement and construction (EPC) in 2016 for commercial operations targeted in 2020.

NewBase Comments / research :-

SaskPower is leading the development of the world’s first and largest integrated carbon capture and storage (CCS) project at the Boundary Dam Power Station in Estevan, Saskatchewan, Canada.

The Boundary Dam Integrated Carbon

Capture and Storage Project is

SaskPower’s flagship CCS initiative. Through the development of the

world’s first and largest commercial-scale CCS project of its kind,

SaskPower is making a viable technical, environmental and

economic case for the continued use of coal.The $1.35 billion Boundary

Dam Project will see the integration of a rebuilt coal-fired generation unit with carbon capture technology, resulting in low-

emission power generation. The facility will be fully commercial in summer of 2014




with performance testing commencing in October 2013. This will become the World's First Post-Combustion Coal-Fired CCS project.

This project will transform the aging Unit #3 at Boundary Dam Power Station near

Estevan, Saskatchewan into a reliable, long-term producer of 110 megawatts (MW) of base-load electricity and reduce greenhouse gas emissions by one million tonnes of

carbon dioxide (CO2) each year. That’s equivalent to taking more than 250,000 cars off Saskatchewan roads annually.

The captured CO2 will be transported by pipeline to

nearby oil fields in southern Saskatchewan where it will

be used for enhanced oil recovery. CO2 not used for

enhanced oil recovery will be stored in the Aquistore

project. In addition to CO2, there will be opportunities for

the sale of other byproducts from the Project. Sulphur

dioxide (SO2) will be captured, converted to

sulphuric acid and sold for

industrial use. Fly ash, a byproduct of coal combustion, will also be sold for use in ready-mix concrete, pre-

cast structures and concrete products.

Project Goals

• Demonstrate the economic, technical and environmental feasibility for coal-fired power generation with CCS.

• Reduce greenhouse gas emissions by approximately one million tonnes per year.

• Support the development of industry-wide CCS regulations and policies.

Why carbon capture and storage on coal?

Natural gas prices rise and fall unpredictably, while coal is abundant and affordable in

Saskatchewan. Government regulations and the need to reduce greenhouse gas emissions around the world means we need to find a way to keep producing

affordable power, but in a way that reduces our impact on the environment.

As SaskPower works on renovating and growing our aging power infrastructure, coal

remains the most affordable power source for customers and CCS will make that coal sustainable for our environment. With the Boundary Dam project and research done

at our second venture into CCS, the Shand Carbon Capture Test Facility, Saskatchewan will add to worldwide research also being conducted elsewhere in

Canada, the United States, Europe, Australia, China and Japan. The Boundary Dam CCS Project will make Canada a global leader in carbon capture and storage.




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 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as

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

the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations

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

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

routes. Many years were spent drafting, & compiling gas transportation , operation & mainroutes. Many years were spent drafting, & compiling gas transportation , operation & mainroutes. Many years were spent drafting, & compiling gas transportation , operation & mainroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for tenance agreements along with many MOUs for tenance agreements along with many MOUs for tenance 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 andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted Energy program broadcasted Energy program broadcasted Energy program broadcasted

internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

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

NewBase 10 March 2014 K. Al Awadi

Economy & Finance

New base special 10 march 2014