New base special 15 july 2014

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NewBase 15 July 2014 Khaled Al Awadi

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

South Korea’s Hyundai wins $1.94 billion Abu Dhabi offshore oil and gas contract The National + NewBase Hyundai Heavy Industries has won a US$1.94 billion contract from Abu Dhabi Marine Operating Company (Adma-Opco) to build an offshore oil and gas platform in Abu Dhabi. The South Korean

company will complete engineering, procurement, construction, installation and commissioning work for the Nasr oilfield, 130 kilometres off the coast of Abu Dhabi, close to the limit of the UAE’s territorial waters.

Scheduled to complete in the second half of 2019, the facility will raise the daily production capacity of the offshore field to 65,000 barrels per day from the current 22,000 bpd. Adma-Opco is seeking to add 300,000 bpd to total production from new fields including Umm Lulu and

Nasr as part of its broader objective to ramp up output to 1 million bpd by the end of the decade. Offshore oil is key to Abu Dhabi’s target to raise output capacity to 3.5 million bpd by 2017. Current capacity stands at 2.7 million bpd. Abu Dhabi Marine Operating Company contributes 600,000 bpd of that amount, according to the company last year.

Hyundai’s contract also includes laying 144km of underwater power and 55km of infield cables, as well as modifying an existing manifold tower and two wellhead towers in the Nasr oilfield.It is not the first time Adma-Opco has partnered with Hyundai. In 2006, Hyundai Heavy Industries constructed three new gas injection facilities for the Umm Shaif project. In April, the company said it had awarded a US$1.89 billion to contract to Hyundai Engineering & Construction to develop the Satah Al Rasboot oilfield.

More recently Adma-Opco has been actively seeking to expand its other offshore fields. National Petroleum Construction Company of tyhe UAE last year won a Dh2.8bn contract to develop the Umm Lulu offshore oilfield. Together with the Satah Al Rasboot and the Nasr fields, it is expected to raise the company’s output sufficiently to meet its 2020 output target.

Adma-Opco is 60 per cent owned by Abu Dhabi National Oil Company, with shares also held by UK-based BP (14 per cent), France’s Total (13 per cent) and Japan’s Jodco (12 per cent).




Musandam Gas Plant to be operational by Q4 OEPPA Business

Development Dept Oman Oil Company Exploration and Production LLC (OOCEP), the upstream subsidiary of Oman Oil Company SAOC, hopes to launch its Musandam Gas Plant — a key investment that promises to fuel the long-term economic development of the Sultanate’s northernmost governorate — before the end of this year.

The project, the largest of its kind in this strategically important enclave, is being developed with an investment of around $600 million at a waterfront location in Tibat in Wilayat Bukha. Designed as an integrated processing plant, the facility will process well fluids from the existing Bukha field offshore platforms.

The well fluids will be transported from the platform to the Musandam Gas Plant (MGP) through a newly installed subsea pipeline where they will be processed to produce sales quality gas, oil, LPG and sulphur, according to OOCEP.At full capacity, the plant will process 45 million standard cubic feet per barrels per day of crude oil.

Part of the project’s output of natural gas will be used as fuel for the governorate’s first ever gas-based power plant planned for implementation next door. Another offshore export pipeline will transport sales gas from Musandam to Saqr Port in Ras Al Khaimah.Gas-powered electrification,




along with an array of notable infrastructure initiatives planned by the government, will usher in a vigorous phase of economic development in this rugged part of the Sultanate.

Projects worth in excess of RO 500 million have been earmarked for implementation across the governorate during the current 8th Five-Year Plan. Key among the schemes lined up for execution is the massive Khasab — Lima — Diba road project, which will open up Musandam to tourism and commercial investment.“The (Musandam Gas Plant) construction phase is nearing completion and is expected to be fully operational by Q4 2014.

The gas will be supplied to the Musandam Power Plant currently under construction, with excess gas being exported,” OOCEP stated in a report.

Significantly, the gas plant’s imminent completion comes against a gauntlet of challenges that Korean engineering and construction giant Hyundai, the project’s EPC contractor, had to face during the execution of the venture.As a green-field project, being implemented in an extremely rugged and remote part of the governorate, all of the goods, equipment and personnel had to be mobilised elsewhere and shipped to site. Furthermore, transportation of goods involved multiple international border clearances and other challenging logistics.

“Extensive mountain cuttings and coastal reclamation was performed for preparation of the plant site. The plant is located adjacent to the main highway and near the border, requiring additional efforts: ROP liaison, site and public traffic management and dust control,” the upstream operator noted.

Nevertheless, the project achieved over 10 million man-hours without any lost time on injuries, it said.Operation and maintenance of the gas plant has been entrusted to Petrofac, the British-headquartered international oil and gas services contractor, under a three-year contract signed

last year. Petrofac will manage the initial transition from the commissioning to full operating phase, with an operations and maintenance team to be deployed at site.

India disallows Reliance from oil cost




Morocco Tangiers: TAO-1 drilling going as planned Press Release,

Tangiers Petroleum Limited has provided an update on the drilling of the TAO-1

exploration well,located offshore Morocco.

No major operational issues have occurred to date and the well is expected to intersect the Assaka and

Trident objectives within 60 days from spud, as previously announced.

As the well has been designated as “tight”, no information related to depth or formation will be provided

during the drilling, beyond what is required by the ASX and AIM continuous disclosure obligations.

About Tangiers Petroleum:

Tangiers Petroleum is an Australian-based oil explorer with assets offshore Morocco in shallow water. Tangiers has a 25 per cent participating interest in the Tarfaya Offshore Block, which is being operated by Galp Energia with a 50 per cent interest.

The remaining 25 percent interest is held by ONHYM (Morocco's National Office of Hydrocarbons and Mines), which is carried through the exploration phase. The high impact TAO-1 exploration well spud on the 26th June 2014 and is expected to intersect two of three possible objectives within 60 days from spud.




India disallows Reliance from oil cost recovery of $2.4bn Reuters + NewBase

India has disallowed Reliance Industries Ltd from recovering $2.4bn invested to develop offshore gas fields in the D6 block on the country’s east coast as output has fallen drastically and is way below the promised volumes, the oil minister said. Under India’s exploration policy, the government allows companies to first recover their costs from oil and gas revenue, and subsequently share profits with the government.Reliance had set up facilities to produce 80 million cubic metres a day (mmscmd), but actual gas production has been much lower, resulting in underutilisation and creation of surplus inventories, Dharmendra Pradhan told lawmakers in a written reply. said notices have been issued to Reliance, which is the block operator, for disallowance of cost recovery. The D1 and D3 gas fields in the block were to produce at a peak rate of 80 mmscmd in 2012-13 but actual production never reached that level. In April-June this year, production from the two fields averaged just 8.05 mmscmd. The government disallowed Reliance to recover $1.797bn as on March 2013, which had risen to $2.376bn by March 2014, Pradhan said. Because of disallowance of cost recovery to Reliance and its partners BP and Niko Resources, the government has raised an additional claim of $195m as profit petroleum for a period up to March 31, 2014, Pradhan said. Reliance had said earlier that unexpected geology caused the decline in output and drilling more wells would not help, but this has been rejected by the oil ministry, which believes output has fallen due to non-drilling of the promised number of wells.“The issue is currently under arbitration,” he said.




PNG: InterOil suspends Wahoo-1 well due to higher-than-expected pressures Source: InterOil

InterOil Corp has suspended the Wahoo-1 well in PPL474 in Papua New Guinea after intersecting gas and

higher-than-expected pressures that could compromise rig safety.

Significant concentrations of methane, ethane, propane and butane have been recorded and are believed to

be entering the well bore from permeable zones above the predicted reservoir zone, which is yet to be

penetrated. The gas is characteristic of thermogenic hydrocarbons, which are indicative of an active

hydrocarbon-generating source rock.

The Wahoo-1 well was designed for high pressures based on data from other wells in the region but the

pressures have exceeded by nearly 50% even those of InterOil’s Antelope discovery, 170km to the north-

west.

After a review by drilling and engineering teams and expert advisers, InterOil has concluded that drilling

ahead would pose an unacceptable safety risk to people and the rig. The company has received approval

from the PNG Department of Petroleum and Energy to suspend the well.

Operations to resume as soon as practicable

InterOil intends to resume operations as soon as practicable following a detailed review of well engineering,

equipment and options, when the company is satisfied it is safe to proceed, and after the regulator has

approved the company’s plans. An option includes testing of the gas-bearing permeable zones encountered

in the Orubadi mudstone. Progress on Wahoo-1 has confirmed an effective seal in the Orubadi mudstone, as

well as the presence of thermogenic hydrocarbons, both of which are key components to a working

petroleum system.

Further drilling is

required to

confirm the

presence of a

reservoir below

the current total

depth of the well

before Wahoo can

be considered a

discovery.




UK: Centrica commences drilling 43/13b-7 Pegasus West well on UK

Licence P1724. Source: Atlantic Petroleum

JV partner Atlantic Petroleum has announced that drilling of the Pegasus West well 43/13b-7 has

commenced on P1724 in the UKCS.

The well is being drilled with the Noble Julie Robertson jackup rig in a water depth of about 95 feet.

Pegasus West is being drilled approx. 7 km WSW of the 43/13b-6Z Pegasus North discovery well. This

well was drilled in 2010 by Centrica Energy and Volantis Exploration, now a subsidiary of Atlantic

Petroleum, and was plugged and abandoned in January 2011 having encountered gas in the Carboniferous.

The Pegasus West Prospect lies in the Southern North Sea, close to the producing Cavendish Field, and has

a Carboniferous gas target. The rig is expected to be on location for over two months.

The well is operated by Centrica Energy which holds a 55% interest in the licence. Atlantic Petroleum

holds 10% equity and the remaining equity 35% is held by Third Energy Offshore.

Ben Arabo, CEO, stated:

'We are very pleased to announce the spud of the Pegasus West well. The well is designed to delineate the

extent of the Pegasus Field, and if successful help to de-risk any future Pegasus development. This is

Atlantic Petroleum’s third of four exploration wells in our planned 2014 drilling programme'.




PSA audits barrier management on Johan Sverdrup Press Release,

On 20 and 21 May 2014, the Petroleum Safety Authority Norway (PSA) carried out an

audit of Statoil’s barrier management in the early phase of the Johan Sverdrup project

prior to the plan for development and operation (PDO).

The objective of a pre-PDO audit is to monitor that the operator’s plans and decisions in the

early phase of the project have been adequately clarified. And furthermore to verify that the

operator has established and is monitoring processes to ensure that the selected solutions are

assessed in relation to regulatory requirements, including the requirements for prudent

activities and continuous improvement.

The PDO for Johan Sverdrup is scheduled to be submitted to the authorities on 13 February

2015 and to be debated during the Norwegian Parliament’s spring session in 2015.

Six observations were identified in connection with: Ignition source control; Emergency

power supply; Risk management; Transfer of experience; Barrier management;

Transformers.




Ethiopia: Tullow Oil's Gardim-1 exploration well disappoints Source: Tullow Oil

Tullow Oil has announced that the Gardim-1 exploration well, drilled on the eastern flank of the Chew

Bahir Basin in the South Omo licence, onshore Ethiopia, has reached a total depth of 2,468 metres in

basement, without encountering commercial oil. The well intersected lacustrine and volcanic formations,

similar to those

found in the

Shimela-1 well on

the north-western

flank of the basin.

Minor intervals

with thermogenic

gas shows were

intersected just

above basement.

The well will be

plugged and

abandoned and

drilling operations

will now be

demobilised whilst

these results are

integrated into the

regional basin

model.

Meanwhile seismic

interpretation

continues on

independent

prospectivity

elsewhere in the

licence and the next

phase of our

Ethiopia

exploration

campaign will

target these

prospects.

Angus McCoss,

Exploration

Director, Tullow

Oil plc commented

today, 'We have

now drilled two independent wildcat wells in the Chew Bahir Basin, neither of which encountered

commercial oil. Whilst our analysis continues, initial indications suggest that the targeted seismic anomalies

related to lavas that flowed into a lake basin. Having gained valuable data, including evidence of

thermogenic gas, we look forward to the next phase of our exploration campaign in Ethiopia.'




Cote d'Ivoire: African Petroleum farms out Block CI-509 interest to Buried Hill Source: African Petroleum

African Petroleum Corp has entered into an agreement with Buried Hill Africa to farm-out a 10% interest

in Block CI-509 offshore Côte d’Ivoire in return for Buried Hill funding 21.1% of the cost of the next

exploration well to be drilled on Block CI-509 and an additional cash payment to African Petroleum

representing 10% of past costs incurred. Under the terms of the Farm-out Agreement, African Petroleum

shall continue as Operator on the licence.

Completion of the Farm-out Agreement is subject to the satisfaction or waiving of certain conditions

precedent, which, apart from one pertaining to government approval of the transfer, must be satisfied or

waived no later than 1 November 2014 (unless extended in accordance with the Farm-out Agreement).

African Petroleum Corporation operates eight licences located in fast-emerging hydrocarbon basins offshore

West Africa. The Company is actively seeking partners to share risk and reward across all assets. In line

with this clearly communicated strategy, dialogue will continue with other potentially interested parties with

a view of securing an additional farm-in partner for Block CI-509.

African Petroleum Corporation’s Chief Executive Officer, Dr Stuart Lake commented: 'We are very pleased

to have secured an initial farm-in on Block CI-509. Alongside the adjacent Block CI-513, Block CI-509

forms part of our highly prospective acreage position offshore Côte d’Ivoire, and we look forward to

announcing further farm-in deals on our West African offshore acreage in due course.'




Tanzania: Woodside farms into Beach Energy's Lake Tanganyika South Block Source: Woodside

Woodside has finalised an agreement to farm-in to the prospective basin of Lake Tanganyika in

western Tanzania. Beach Energy has accepted Woodside’s offer to acquire a 70% participating

interest in the Lake Tanganyika South Block and the respective Production Sharing Agreement.

Woodside CEO Peter Coleman said the farm-in provided an opportunity to secure a large acreage

footprint in an exciting and underexplored oil prone frontier basin. 'Securing this highly prospective

acreage represents another step forward in building Woodside’s global exploration portfolio' Mr

Coleman said.

The proposed work program includes seismic studies, with an option for future drilling and

operatorship. The agreement is subject to required government and regulatory approvals.




Flickr & Google pages and other tools make EIA data more accessible Source: U.S. Energy Information Administration

EIA's recently launched Flickr page provides users with another avenue to view graphs, charts,

maps, and other images produced using EIA's data and analysis.

The images stored on EIA's Flickr page are categorized by state. This allows the public and EIA's state,

tribal, county, and local stakeholders to quickly find information relating directly to their state's energy

production, consumption, prices, and other energy topics covered by EIA's reports.

There are more than 240 images on the Flickr page, including many graphs and maps from Today in Energy

articles. The Flickr page includes graphs and maps that illustrate dozens of important energy trends,

including:

• Rising crude oil and natural gas production

• Growth in electricity generation by wind, solar, and other renewables

• Transportation bottlenecks for moving energy supplies and commodities

• Changes in energy prices

EIA's Flickr page also contains materials designed specifically for individual states, including Web banners

that state agencies can use to link to their EIA state profile.

Over the past year, EIA released many tools designed to make energy information more accessible. These

tools include EIA's coal data browser, electricity data browser, and application programming interface

(API), to name a few.

These resources and others will be highlighted during EIA's 2014 Energy Conference. The event is being

held today and tomorrow at the J.W. Marriott in Washington, DC. Readers can learn more about these

resources by attending EIA's 2014 Energy Conference or reading the proceedings that will be posted after

the conference.




Major Oil & Gas Events & Exhibitions NewBase - Special




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Your partner in Energy Services

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

Energy Services & Consultants Mobile : +97150-4822502

[email protected] [email protected]

Khaled Al AKhaled Al AKhaled Al AKhaled Al Awadi is a UAE National with a total of 24 yearswadi is a UAE National with a total of 24 yearswadi is a UAE National with a total of 24 yearswadi 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 Energy consultation for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for

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

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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

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New base special 15 july 2014