New base special 16 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 16 April 2014 Khaled Al Awadi

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

Kuwait plans to award $4.3bn oil project deal By Reuters

Kuwait plans to award a KD1.2 billion ($4.3 billion) contract later this year for the first phase of a project to produce heavy oil at its northern Ratqa field, the head of state-owned Kuwait Oil

Company (KOC) said.

The project is part of efforts to meet Kuwait's target of producing 4 million barrels of oil per day (bpd) by 2020. The OPEC member currently produces around 3 million bpd and exports around two-thirds.The deadline for bids for the engineering, procurement and construction (EPC) contract is May 11, but this may be extended if companies continue to have queries, KOC Chief Executive Hashem Hashem told reporters on the sidelines of an oil conference on Tuesday.

"This is (for) facilities needed to develop heavy oil, to be able to produce up to 60,000 (bpd)," he said of the planned

first phase of the project at Kuwait's northern Ratqa field. "All the international EPC contractors showed interest, and they are actively participating in this bid," he said. KOC will spend about three months assessing the bids and award the contract by about October, he added.

The 60,000 bpd should be online by 2017 or 2018, he told the conference. By 2020, the production should be 120,000 bpd and KOC will evaluate whether it needs to raise this to 270,000 bpd beyond that date, he said. Kuwait's oil production comes mainly from a few mature fields, dominated by the huge Burgan field in the south of the country. Kuwait's current capacity is around 3.25 million bpd, with KOC's share at around 3 million bpd, Hashem said.

To bring the capacity up to 4 million bpd by 2020, KOC will contribute an extra 650,000 bpd, he said. The growth of production is going to come from north Kuwait," he said. Currently KOC is producing around 700,000 bpd there and will boost this by 300,000 bpd, he said.

Hashem expected that Kuwait's Jurassic gas field project, also in the north, would produce an associated 300,000-350,000 bpd of light oil. Asked whether Kuwait was looking at shale gas production, Hashem said there was potential for it but that such operations were low on KOC's priority list. "We have a huge bundle of reserves. The priority of shale gas ... is not that big."




BP awards $3b worth gas projects in Oman BYA E JAMES, Times of Oman

British oil giant BP has awarded projects worth $3 billion since February this year for developing the Khazzan tight gas field in north-central Oman. Oman government and BP have signed an agreement for the fullfield development of Block 61, with a total capital expenditure of $16 billion for drilling 300 wells, a gas-processing plant and related facilities

"We are in action…we have already started drilling our first development well, building roads and designing buildings," Dave Campbell, vice-president of operations, BP Oman, told journalists on the sidelines of the ninth annual asset integrity management summit jointly organised by IQPC and Global Exhibitions and Conferences.

He said the company has also started mobilising rigs. "We have two rigs (at the concession area) and three rigs are arriving later this year." Petrofac, an international oil and gas service provider, has been awarded a $1.2 billion-engineering, procurement and construction contract by BP for building the central processing facility (CPF) for the Khazzan gas project

The gas processing facility, which is part of an overall development plan of block 61, will have a capacity to process one billion cubic feet (bcf) of natural gas per day, which is the anticipated production from gas-rich Khazzan and Makarem fields in the first phase. The gas processing plant is expected to be completed in 2017, said Campbell

Jacobs Engineering Group Inc. bagged a contract from BP for process and infrastructure work on the green field Khazzan project. Referring to the in-country-value initiatives of BP, he said the company is working on a strategy to pass on the business opportunities to small and medium enterprises and local contractors. BP has already awarded a contract for designing and building a water pipeline network to an Omani company. The company has also started recruiting technicians for the project, who will be trained at BP's training facility.of $16 billion.




BP Unlocking potential in Oman. BP.com

Five years after BP drilled its first appraisal well in the Khazzan gas field, the company and the Sultanate of Oman

find themselves on the cusp of one of the largest new projects in the Middle East, with the potential to become a

major new source of gas for decades to come

Five years after BP drilled its first appraisal well to test the opportunity to produce a major new gas resource for Oman, the Sultanate now finds itself on the cusp of one of the biggest new projects in the Middle East. The Khazzan project involves investment of $16 billion over a period spanning more than 30 years to unlock around 7 trillion cubic feet of gas and deliver a volume equivalent to around a third of Oman’s current total daily domestic gas supply. More than that, it represents the first phase in the development of one of the Middle East region’s largest unconventional ‘tight gas’ accumulations, which has the potential to be a major new source of gas supply for Oman over many decades.

Every major development faces technical challenges and risks, but these have been solved to a large extent through

an extensive and rigorous appraisal programme for Khazzan. Step one: complete BP’s largest-ever (at the time)

onshore 3D seismic survey, covering an area the size of Greater London. Step two: continually improve drilling

techniques using vertical and horizontal wells and hydraulic fracturing to unlock tight gas in hot, tight sandstone

reservoirs located almost five kilometres (three miles) below the Earth’s surface. Step three: prove the approach

works through an extended well test, exporting gas production from four wells to the national supply grid.

BP has accomplished all of these, giving the company and the Government of the Sultanate of Oman the confidence

to approve the project at the end of 2013.

The signing of the agreement in December was a significant milestone for BP. Dave Campbell, general manager and

vice president of operations for BP Oman, says: “We are getting into action on what we need to do in Muscat and in

the field. We are also mobilising people from other parts of the world to help us safely deliver the project, and we have

been working with the government and our partner, the Oman Oil Company for Exploration and Production, to place

major contracts for the project.”

We are getting into action on what we need to do in Muscat and in the field. We are also mobilising people from other

parts of the world to help us safely deliver the project - Dave Campbell, vice president of operations for BP Oman




Significant opportunities

According to Khalid Al Kindi, BP Oman deputy general manager and in-country value manager, the Khazzan project

provides three significant opportunities: “First is the energy required for economic development. The Sultanate of

Oman has ambitious plans to attract investment into refining and petrochemical investments, including at a new

industrial area in Duqm and at the established industrial hub of Sohar, where they will begin to produce more steel,

aluminum, and other resources. All these projects have one thing in common – the requirement of energy. The

second opportunity relates to what the Government of the Sultanate of Oman calls ‘in-country value’ (ICV) –

maximising the opportunities for local Omani companies in our supply chain. The third element is the development of

Omani capabilities through the various programmes to invest in the people of Oman.”

According to the United Nations Development Programme, the Sultanate of Oman is one of the most improved

countries in the world over the past 40 years in terms of education, healthcare and infrastructure. However, economic

activity tends to be concentrated in Muscat and the northeast Batinah region. Significant challenges lie ahead, with

rapid population growth creating a need to diversify the economy, grow the private sector, and create jobs for the

thousands of young people leaving school each year. The oil sector plays a dominant role in the economy.

As I get on the BP bus at dawn that will transport me to the Khazzan field (a safety measure brought in by BP to

reduce risks on the road), I have time to sit and reflect on these achievements from a nation that numbers just three

million. Six hours, in fact, because Khazzan is located around 350 kilometres (220 miles) into the interior of Oman, in

a concession area known as Block 61. To begin with, the journey takes you along perfect road from Muscat, past the

ancient trading city of Nizwa, away from the mountains and into the hot, dry and endlessly flat desert. Closer to the

block, we move onto graded gravel roads. The speed slows down and the temperature gradually rises, as we reach

our destination at noon.

The first thing I notice upon arrival is the spirit of the people and the buzz about the place. BP Oman’s people have

always been lively and busy, but you can feel a significant change in the atmosphere – a mood of confidence and

determination. The Khazzan project is now a definite part of the future, as an energy source for the country, helping to

drive industrial growth, business and job opportunities.

see a bright future for BP in Oman, where competent Omani leaders will help guide the company to success

- Abbas Al Lawati, drilling engineer Challenger in BP Oman

Development programmes

Some of that impact is direct and already visible. For example, through the hiring and development of national staff.

More than 70% of BP’s workforce is Omani and the company is aiming to increase the level of ‘Omanisation’ in the

coming years. To achieve this goal, BP has set up a series of development programmes.

In 2010, the company introduced its global graduate recruitment initiative, known as Challenge, which provides a

structured three-year programme that includes potential for overseas training and development.

“We have recruited more than 30 Omani graduates so far and we intend to build our local workforce through

continued recruitment over the coming years,” says Stuart Worker, BP’s head of human resources in Oman.

Raqiba Al Tobi, a geologist Challenger in the subsurface team in Oman, says of her experience: “As a female, I am

proud that I am here. I am the only female geologist in the team. It gives me a chance to test myself to the limit and

see what I’m capable of.”

Many of the graduates who have secured a place on the programme are looking forward to more challenges in their

careers. Abbas Al Lawati, a drilling engineer Challenger in BP Oman, says that there are many opportunities

available. “I chose to work with BP because it is an international company. I saw a big opportunity for me to move

around the world and experience how other operations work. Not many companies can provide these opportunities in

Oman. BP offers worldwide expertise because of the diversity that exists in the organisation. Omanis are the future for

BP Oman. BP has an excellent programme to develop our technical and leadership skills and to prepare us for




greater responsibilities in the future. I see a bright future for BP in Oman, where competent Omani leaders will help

guide the company to success.”

BP has also launched a technicians development programme – a structured five-year programme designed to take

diploma graduates from technical colleges from foundation level to world-class technicians over a five-year period.

The programme is expected to help more than 120 Omanis develop their skills.

Located in the industrial area of Muscat, the newly-established technicians’ centre is a hive of student activity. Its main

hall leads to the student-filled cafeteria, with more halls beyond that lined with classrooms, equipment and tools.

Abeer El-Beloushi, the first female to join the programme and only one of two women, says: “I am the only female

here, so, naturally, I face challenges. However, some of the activities that I used to find difficult are now easy and I do

them with efficiency. With teamwork and courage, I was able to get through all challenges. Nothing is impossible, you

can do whatever you set your mind to. Nothing is too difficult for a woman, and I encourage females to enroll in this

programme. Being the only female here makes you strong and confident, your personality stands out, and it enables

you to deal with any situation.” BP has hired 40 technicians on to the programme, so far, and has sent the first group

of technicians for an overseas training assignment at other BP locations in the US and the UK.

In training Abeer El-Beloushi was the first woman to join the

technicians’ development programme. She says:

“Nothing is impossible, you can do whatever you

set your mind to. Nothing is too difficult for a

woman, and I encourage females to enroll in this

programme. Being the only female here makes

you strong and confident, your personality stands

out, and it enables you to deal with any situation."

Invaluable information Back in the desert, there are more immediate priorities with work going on by BP to decommission the extended well

test (EWT) facility. This was designed to prove the deliverability of tight gas from the reservoirs within Block 61, as

well as providing surface facility design data. Four production wells were tied back to a processing facility, which

operated for more than two years. The project produced invaluable information that was a key factor in sanctioning

the full-field development of Khazzan.

Paul Johnston, BP Oman onshore site manager for operations, says: “We shut down the last of our wells in January,

and since then have been working to prepare for deconstruction activities. Our focus and priority will remain on

process and personal safety throughout the decommissioning and deconstruction phases.”

As one chapter of BP’s history in Oman ends, the next brings immediate, new challenges, with an rapid ramp-up in

the number of people onsite. One of the biggest tasks is to construct the camp facilities, including a new central

accommodation complex that will house around 4,000 to 5,000 workers at the site.

At the peak of construction, there will be 8,000 to 10,000 people working within Block 61. On any given day, there

may be hundreds of vehicle movements and people working over a wide geographically-dispersed area of

approximately 1,500 square kilometres (580 square miles). One of the biggest challenges is managing the safety of

so many over a large geographic area.

For Julian O’Connell, vice president of projects for BP Oman, the importance of safety is paramount. “Everyone who

comes into Block 61 will be given a common Block 61 induction. We’ll make sure that the contractors and their control

of work processes are compliant with BP’s procedures and are gap-assessed against the group designed practice for




the control of work. The contractors will be managing their activities within their own control of work framework. We’ll

also have a team of BP health and safety experts to make sure that the contractors are adhering to their own safety

working practices.”

Geographically dispersed

Another challenge in delivering such a large, geographically-dispersed project in a remote desert location is worker

welfare and ‘life support’. Water, for example, is a basic need – not only to hydraulically fracture and stimulate 300

tight gas wells and for construction work, but also for people to drink. One of the initial project activities is to drill water

wells into a brackish, salty aquifer within Block 61 and construct a temporary reverse osmosis plant to treat the water,

along with a pipeline that will deliver the water to where it is needed. A large workforce in a hot environment will need

a lot of water. People working for the project will also need decent accommodation and food, plus medical and

recreation facilities. And, every single vehicle movement in and out of the concession area will be controlled and

tracked.

The Khazzan field development plan will involve drilling around 300 wells, mostly horizontal, using eight drilling rigs

over 15 years. BP will aim to achieve production of around 1 billion cubic feet of gas per day.

“BP is applying innovative technology to unlock Khazzan’s potential,” explains new well delivery manager Steve

Rainey. “We are drilling horizontal wells and using hydraulic fracturing technologies to stimulate production. The rocks

we are drilling through are very hard, requiring

focus on advanced hard rock drilling technologies.

Through the application of advanced seismic

imaging techniques, we hope to ensure that we

drill our best wells first.”

Local team Young technicians at work at the technicians’

centre. BP has hired 40 technicians on to the

programme, so far, and has sent the first group of

technicians for an overseas training assignment

at other BP locations in the US and the UK.

Greater productivity

Although BP has overcome many of the challenges of unlocking this tight gas, there remain opportunities to better

understand the subsurface and the drilling solutions required in the hydraulic fracturing process to optimise the

Khazzan development. Paul Forman, vice president of wells for the Middle East region, says, “If we can drill and

stimulate these horizontal wells with the appropriate fracturing techniques, then we end up with greater well

productivity and a better cost per barrel situation than we would with a vertical well.”

By the end of 2014, there will be five rigs operating within the block, with large-scale construction work starting up for

the central processing facility (CPF), as well as the extensive work to build roads and well-pads, the central

contractors’ accommodation, plus a camp for the wells contractors.

BP has taken time to plan rigorously. “What we’ve been doing for the past two to three years is preparing and framing

the project for success,” says O’Connell. “That involves a lot of planning. Now, there’s a huge amount of activity to

bring the contractors onboard, mobilise the rig and the rig crews and to make sure that they’re doing it all safely,

helping them to understand our expectations in terms of how we operate safely and also guiding them in that process

to do it effectively. We’re also working to mobilise the contractors and bring them onboard. The time this is taking, the

rigour that’s gone into developing the best project for Oman – you can compare the process to preparing for any race.

You do a lot of training and preparation and now we’re out at the starting blocks, ready to move.”




GE, Aramco launch desal efficiency challenge TradeArabia News Service

GE ecomagination and Aramco Entrepreneurship today launched an open global technology challenge to accelerate the development of solutions focused on improving energy efficiency of seawater desalination. The $200,000 challenge will be awarded to four winners at a prize of $50,000 each, and further investments towards commercialisation of the best ideas amongst all submissions will be considered, said a statement. Current desalination techniques are typically very energy intensive: energy consumption can account for up to 70 per cent of the desalination costs. The global production of desalinated water uses approximately 75.2 terawatt-hours of electricity per year, enough to power nearly 7 million homes. The goal of this challenge is to identify novel ways to lower these costs around the world, either through technology advances, process improvements, or both, it said.

Nabil Al-Khowaiter, Aramco Entrepreneurship’s director of special projects, said: “Finding a more efficient method of desalinating seawater will be a game-changer in our collective pursuit of a more sustainable energy future across the globe. Due to increased water scarcity, countries around the world are poised to rely more and more heavily on desalination as a means to provide fresh water. With current techniques, this increased reliance could contribute dramatically to increased energy use. Aramco Entrepreneurship is partnering with GE not only to identify new solutions to lowering desalination costs, but also to invest in and attract new technologies and industries to Saudi Arabia.”

Deb Frodl, GE’s global executive director, ecomagination, said: “GE ecomagination is investing to speed up the development of more sustainable solutions for water desalination. Through this challenge, we hope to inspire scientists, engineers, entrepreneurs, and innovators around the world to bring their talents to this effort and help drive greater outcomes for customers.”

The open innovation challenge aims to identify new solutions to lower total desalination costs and emissions through: cleaner energy sources; incorporating advanced materials; and integrating processes better. olutions must be innovative, impactful, feasible and scalable across the globe. This technology challenge also received endorsement from the Saudi Arabian Saline Water Conversion Corporation (SWCC), which owns and operates around 25 per cent of the entire world’s desalination capacity.

The governor of SWCC, Dr Abdulrahman Al-Ibrahim, said the theme of this international open innovation competition is consistent with SWCC’s strategic objective of constantly working to bring down the cost of desalinated water in the

kingdom. Entries are being immediately accepted at www.ninesights.com/community/ecomagination. The deadline to submit entries is July 16 and winners will be announced in November 2014.

The challenge is the fifth ecomagination open innovation challenge since ecomagination launched in 2005. The first two challenges focused on smart grid technology. GE has a successful history with open innovation challenges; most recently launching an advanced manufacturing challenge to use 3D printing to improve the production of a GE aircraft engine bracket and two healthcare challenges to advance work in breast cancer and traumatic brain injury diagnosis.

Since its 2005 launch, ecomagination – the company’s commitment to technology solutions that save money and reduce environmental impact for its customers and GE’s own operations – has generated more than $160 billion in revenue, it said.




Africa and Brazil more attractive than Arctic in oil exploration Reuters/London

Africa and Brazil are more attractive areas for oil and gas exploration than the Arctic, where firms will need 15 to 20 years to tap reserves due to the harsh climate, the chief executive of Norway’s DNV GL said. DNV GL is one of the world’s largest certification, inspection, testing and advisory companies for the maritime, oil and gas and renewable power industries.

The Arctic is estimated to contain 20% of the world’s undiscovered hydrocarbon resources. Melting ice due to global warming has created opportunities there for oil and gas companies, but they still face high costs and risks at a time that most oil majors are cutting capital spending.

“Any significant production will be 15 to 20 years away except for the Yamal (peninsula), but that is onshore,” Henrik Madsen, DNV GL Group’s president and chief executive, said in an interview. “I think there are more attractive areas in the world like Africa and maybe Brazil. There is also lots of shale oil around,” he added.

On the Yamal Peninsula in the Western Siberian Arctic, Russian gas producer Novatek is developing a $27bn liquefied natural gas (LNG) project together with French energy group Total and China National Petroleum Corp. In Africa, meanwhile, improved seismic

techniques and the opening up of more countries to international companies have increased the areas that are on the verge of oil production. Uganda, Kenya, Ghana and Niger are among countries with new oil fields that could produce over 100,000 barrels per day by the end of the decade, while Mozambique and Tanzania are locked in a race to be the first to export gas from East Africa, Madsen said.

Brazil’s oil production prospects have risen since deepwater “subsalt” reserves were found in 2007, which are estimated to contain 35bn barrels of recoverable oil equivalent, more than double Brazil’s existing reserves.

Since the middle of last year, most major integrated oil and gas producers have announced reductions in their capital expenditure programmes. “All the big oil companies are now a bit more cautious about capital-intensive projects

Yamal LNG




in difficult areas, the Arctic being one of them,” Madsen said. “In terms of risks, you definitely can do it in a safe and sustainable manner, but you have to do it one step at a time.” Gazprom has put the development of Russia’s Shtokman gas field in the Barents Sea on hold due to costs, while Royal Dutch Shell has suspended its Arctic drilling programme as part of a wider drive to cut spending.

One third of the Arctic is covered by land; another third consists of the offshore continental shelf with waters mostly less than 500 metres deep, and the rest is made up of ocean waters deeper than 500 metres.

Arctic oil and gas exploration is expected to start in the Norwegian part of the Barents Sea, an area with a maximum depth of 450 metres that is technically easier to develop because waves are less strong than in other areas and warmth from the Gulf Stream keeps it free of ice. Several firms are already focussed on that area, including Austrian firm OMV, which last year found reserves of up to 164mn barrels of oil.

Other areas could are more difficult.

“The shelf is not explored. It is a big job to do

exploration drilling there and also shooting seismic (surveys)... There is not much new going on in Alaska. Around Greenland it is very early days, and I am not sure that will ever be developed,” Madsen said. Shipping activity in Arctic areas is also likely to rise in coming years, but the risks will need to be managed, he said.

DNV GL has estimated that the risks are nearly 30% higher for a cruise ship in Arctic waters than on conventional routes due to survival challenges for the people on board. For bulk carriers, the danger is estimated to be 15% higher because of the risk of colliding with ice.

The Northern Sea Route from the Atlantic Ocean to the Pacific Ocean runs along the Russian Arctic coast to the Bering Strait and Far East. The entire route is in Arctic waters, parts of which have a surface layer of ice for around 10 months of the year. “What we fear most is if we get some cowboys up there. It is not easy to navigate, it is quite shallow water, quite narrow straits and there is ice, so you need to have really good captains,” Madsen said.




Ensco orders two jack-ups for Middle East needs Press Release, Ensco

Ensco plc has ordered two high-specification jack-ups, ENSCO 140 and ENSCO 141 in order to

fulfill customer demand for the Company’s differentiated rig technology and contract drilling

services in the Middle East.

Both rigs, which will incorporate Ensco’s patented Canti-Leverage AdvantageSM technology, are significantly enhanced versions of the LeTourneau Super 116E jack-up design. The new jack-ups will include design specifications necessary to fully comply with the vast majority of regulatory and customer requirements in the Middle East, the primary target market for ENSCO 140 and ENSCO 141. The rigs are scheduled for delivery in mid-2016 from Lamprell’s newest shipyard located in the United Arab Emirates. The rigs are also suitable for most of the markets around the world outside of the Middle East. This new rig order reinforces Ensco’s

standardization strategy since the equipment package matches much of the proven technology used across the Company’s premium jack-up fleet – the largest in the world.

ENSCO 140 and ENSCO 141 will be constructed under a fixed-price contract. Including commissioning, systems integration testing and project management, the total construction cost is estimated to be $430 million, or $215 million per rig. The contract with Lamprell includes options for two additional rigs of similar design.

“Over the past three years, we have successfully contracted our ENSCO 120 Series newbuild jack-up rigs

well ahead of delivery based on the advantages of our proprietary technology,” said Dan Rabun, Chairman, President and CEO. “While we recognize that many newbuild rigs are entering the market, we

believe our new ENSCO 140 and ENSCO 141 jack-ups will attract significant customer interest based on

their unique design, which is predicated on detailed market analysis of customer preferences.”

ENSCO 140 and ENSCO 141 will deliver proven drilling technology, as well as cost advantages for customers and Ensco. Enhanced crane capacity, liquid mud storage and living quarters with 140 beds will translate into significant logistical efficiencies and cost savings for customers. The patented Canti-Leverage AdvantageSM technology, first used on ENSCO 120 Series rigs, also provides cost advantages for customers by allowing them to drill more wells from one location when utilizing the enhanced hoisting capacity at the farthest reach of the cantilever. Other key features of the rig design include a dual-drilling fluid system, a 1.5 million-pound derrick, TDS-8 top drive and a 15k BOP. The rigs will initially be outfitted to work in water depths up to 340 feet and may be upgraded to operate in up to 400 feet of water. They will be capable of drilling to a maximum total depth of 30,000 feet.

With this new order, Ensco now has eight newbuild rigs under construction: five premium jack-ups and three ultra-deepwater drillships. Since the beginning of 2010, Ensco has taken delivery of 12 high-performance rigs, including two ENSCO 120 Series ultra-premium harsh environment jack-ups, five Samsung DP3 ultra-deepwater drillships and five ENSCO 8500 Series® ultra-deepwater semisubmersibles. During this same period, Ensco has divested 13 less capable rigs as part of its continuous high-grading strategy. Proceeds from these sales have been used to fund newbuild orders.




Petrofac wins German North Sea wind contract Reuters

Oil and gas services provider Petrofac has won a major contract for offshore wind farm grid connection in the German North Sea.

In consortium with Siemens, Petrofac won the contract from TenneT, the German-Dutch transmission grid operator, for its BorWin3 offshore wind farm which begins commercial operation in 2019, but did not elucidate on the monetary size of the deal.

Petrofac will be responsible for the construction and offshore installation of the BorWin3 platform, which will house a Siemens high voltage direct current (HVDC) station that converts power produced by the wind turbines so it can be transmitted onshore to the German national grid.

The FTSE 100 company said the HVDC station will be one of the biggest of its kind, with a transmission capacity of 900 megawatts (MW).

Marwan Chedid, Chief Executive of Petrofac's Engineering, Construction, Operations and Maintenance (ECOM (Stockholm: ECOM.ST - news) ) business, noted that Petrofac was involved in a number of projects with TenneT in the German North Sea and, since January 2009, has been providing people, maintenance and support services to the adjacent Borwin alpha platform. "We are delighted to be partnering with Siemens on this significant contract, which deepens a relationship with an important customer and allows us to utilise our vast experience of operating in the North Sea and delivering large scale, complex projects," he said. Shares in Petrofac spiked higher on the announcement but then resumed their downward on the day, falling 1.2% to 1,396p by 10:45 on Tuesday.




US to hold western Gulf of Mexico lease sale in August Washington (Platts)

The Obama administration said on Tuesday it will put more than 21 million acres in the western Gulf of Mexico up for auction in a lease sale planned for August.

The proposed Lease Sale 238, which is scheduled to take place in New Orleans, will include 3,992 blocks covering 21.4 million acres from nine to 250 miles offshore Texas in water from 16 feet to nearly 11,000 feet deep, the Bureau of Ocean Energy Management said.

Three blocks will be located, or partially located, within the boundary area subject to the US-Mexico Transboundary Hydrocarbon Agreement. The Bureau of Ocean Energy Management (BOEM) estimates the lease sale could result in the production of 116 million-200 million barrels of oil and 538-938 Bcf of natural gas.

The proposed terms of the sale include environmental protection stipulations, but the final terms and conditions of the sale are not final, BOEM said. The lease sale will be the sixth offshore sale under the administration's ongoing five-year outer continental shelf oil and gas leasing program, which runs through 2017. The first five sales have included 60 million acres and netted about $2.3 billion.




Angola: Technip Heerema Alliance wins major Kaombo subsea contract Source: Technip

The consortium, comprising Technip and Heerema Marine Contractors (Heerema), has been

awarded a major lump-sum contract by Total E&P Angola for the engineering, procurement,

construction, installation (EPCI) and pre-

commissioning for the SURF (subsea

umbilicals, risers and flowlines) part of the

Kaombo project, located in Block 32

offshore Angola in water depths up to 2,000

meters. The contract is valued at approx.

USD 3.5 billion with a Technip share of

around 55% and a Heerema share of around

45%.

This project falls within the Technip Heerema strategic alliance formed 15 months ago that offers comprehensive subsea solutions through a unique combination of complementary assets, technologies and capabilities. It provides the industry with a strong and experienced contractor to address the ultra-deepwater market.

The project’s scope of work consists of the engineering, procurement, fabrication, transport and installation of:

• 18 rigid risers, of the Single Top Tension Riser (STTR) type, including large buoyancy tanks (~40m high, ~6m

diameter), flexible top riser jumpers and riser base spools,

• approx. 300 kms of rigid pipe-in-pipe production and single pipe injection pipelines,

• a large number of subsea structures, piles and steel jumpers.

Besides, it covers the transport and installation of approximately 115km of client-supplied umbilicals, manifolds, well jumpers and flying leads.

The partners will leverage the complementarity of their respective field-proven technologies, thus optimizing the project execution:

• Heerema’s scope will cover the riser systems, as well as the deeper and heavier pipe-in-pipe (18”/12”)

production pipelines,

• Technip’s scope will include flowlines, flexible pipe manufacturing and installation, umbilical installation,

hook-up and pre-commissioning activities

The engineering work will start immediately in the Paris (France), Leiden (the Netherlands) and Luanda (Angola) centers with most of the offshore installation activities being scheduled for 2016 and 2017.

National content is of strategic importance to Technip and Heerema and their Angolan subsidiaries will bring their competencies and expertise to the project. Technip Angola Engenharia will provide engineering and project management services, while Angoflex will fabricate pipeline stalks and execute spooling services to the installation vessel. Heerema Porto Amboim will provide fabrication services for the subsea




structures as well as double jointing of line pipe sections that later will be installed by the Deep Water Construction vessel Balder.

The flexible pipes will be manufactured at Technip's FlexiFrance facility in Le Trait (France). The fabrication of the rigid flowlines for reel lay will take place at Angoflex’s spoolbase in Barra do Dande (Angola).

Heerema intends to mobilize its Deep Water Construction vessel, the Balder, to install all STTRs and the pipe-in-pipe (18”/12”) production pipelines. Technip’s vessel, the Deep Blue, will install all the remaining pipelines. Other vessels from Technip's fleet will install the flexibles and umbilicals and provide construction work support.

The project is scheduled for completion in the first half of 2018.

Thierry Pilenko, Chairman and Chief Executive Officer of Technip, declared: 'This project is the largest subsea contract ever awarded to Technip and strengthens our position in the ultra-deepwater market. This award further reflects the confidence of major industry players, such as Total, in the Technip Heerema Alliance to address the significant challenges of ultra-deepwater projects. We are proud to bring an unrivaled complementarity of capabilities, while leveraging leading-edge technologies, R&D and assets. Furthermore, we are delighted to see that this award validates both companies’ commitment to developing facilities and workforce locally for the benefit of the Angolan energy infrastructure.'

Pieter Heerema, Chairman and Owner of Heerema Marine Contractors, declared: 'To be awarded the largest SURF project in the industry to date as the first project for the Technip Heerema Alliance is a fantastic success. This award is a recognition that our clients appreciate the value of the Alliance in delivering safe, robust, competitive and unrivalled solutions for large and complex ultra-deepwater projects. Building on our reputations, we are convinced that we will bring this prestigious project to a successful end. Finally, we are very pleased that the award of the Kaombo project allows us to bring substantial work volumes to our Angolan fabrication and marine transportation companies.'

Fast Facts

About subsea products

• Riser: a pipe or assembly of pipes used to transfer produced fluids and or products from the seabed to

surface facilities, and transfer injection or control fluids from the surface facilities to the seabed.

• Spool: short length pipe connecting a subsea pipeline and a riser, or a pipe and a subsea structure.

• Flowline: a flexible or rigid pipe, laid on the seabed, which allows the transportation of oil/gas production or

injection of fluids. Its length can vary from a few hundred meters to several kilometers.

• Umbilical: an assembly of steel tubes and/or thermoplastic hoses which can also include electrical cables or

optic fibers used to control subsea structures from a platform or a vessel.

• Jumper: a short section of pipe for the connection of two subsea structures.

About the Technip Heerema Alliance




Formed in October 2012, the five-year alliance agreement makes available the complementary assets of the two companies for ultra-deepwater EPCI projects, requiring substantial tensioning capability. It brings:

• strong project management capabilities and experience in very complex subsea projects,

• leading edge technologies,

• international network of engineering centers,

• unmatched network of logistic bases and manufacturing plants,

• high tension J-Lay vessels, provided by Heerema through their installation vessels Aegir and Balder,

• S-Lay and Reel-Lay assets of both companies, as needed.

About Technip in Angola

As a local partner focused on onshore, offshore and subsea engineering solutions, Technip’s activities in Angola include:

• engineering services through Technip Angola Engenharia Limitada, the first engineering company in Angola,

a joint venture between Sonangol (40%) and Technip (60%),

• umbilical manufacturing with Angoflex Limitada, created in 2002, through an association between Sonangol

(30%) and Technip (70%),

• a reeled steel pipe spoolbase with Angoflex Limitada, inaugurated in 2006 and located in Barra do Dande,

North of Luanda.

A total workforce of 590 people is working for Technip in Angola. Among the staff on the payroll, 90% are Angolan nationals.

More information on: http://www.technip.com/en/entities/angola/profile

About Heerema in Angola

Established in 2010, Heerema operates two joint venture companies together with a local partner in Porto Amboim, Angola serving the Angolan offshore oil & gas industry. The activities include:

• Fabrication of subsea structures, multi-jointing of linepipe, as well as logistical and marshalling services

through Heerema Porto Amboim (HPA) Limitada;

• Marine transportation services for the offshore oil & gas industry through Heerema Marine Angola -

Sociedade Angolana de Transportes Limitada.

Both joint ventures currently employ over 325 employees, of which more than 90% are Angolan Nationals.




India: Oilex's Cambay-77H well reaches TD Source: Oilex

Oilex has announced that Cambay-77H has reached TD at 2370m MD. The primary reservoir target (Y Zone) has been intersected on prognosis and increased gas readings similar to Cambay-76H indicate the reservoir is hydrocarbon bearing. A full suite of logs will be acquired subsequent to conditioning the wellbore, after which, the 4½ inch production casing will be set and cemented in preparation for a fracture stimulation programme.

In addition to drilling to TD, subsequent to the announcement on 8th April 2014, drilling operations have:

• Modified and tested the BOP for the 8 ½ inch hole

• Changed the drilling assembly to suit the 8 ½ inch hole size

• Weighted up the mud system for anticipated over-pressure in the reservoir

• Drilled out excess cement and retrieved some debris

• Drilled out of the 9 5/8 inch casing and conducted a formation integrity test (FIT)

• Directionally drilled into the Y zone reservoir section

Cambay-77H is offset 300m from the Cambay-76H horizontal well that underwent a successful multiple staged fracture stimulation programme along its 633m lateral section in 2012. However, it was suspended before testing due to downhole mechanical problems. Prior to suspending the well, gas and condensate flowed to surface during well control operations.




India Gets LNG Cargo from Qatar LNG World News Staff, April 14, 2014; Image: Petronet

Petronet’s Dahej LNG terminal on India’s west coast received a cargo of LNG onboard the 138,097

cbm Disha from Qatar in Sunday, according to shipping data.

Petronet has this year received environmental clearance from India’s Ministry of Environment & Forests for doubling the capacity of the Dahej LNG import terminal. The company plans to increase the capacity of the LNG terminal to 20 mtpa from 10 mtpa at present.

Petronet LNG is looking to expand its 10 million tonnes a year (t/y) Dahej import terminal by 50%, and also plans to open the 5 million t/y Kochi terminal in the second quarter of next year. India could triple LNG import capacity to 47.5 million t/y by 2015-16, if all its proposed terminals are completed, rising to 62.50 million t/y by 2019-20 And suppliers are already eyeing the Indian market. GDF Suez recently signed a 600,000 t/y supply deal with Petronet LNG, to next year; while, Russia's Gazprom has signed four 2.5 million t/y memoranda of understanding with Indian energy companies Gail, Gujarat State Petroleum, Petronet LNG and Indian Oil for long-term deals for up to 25 years.

Gail imported five spot LNG cargoes in the first half of 2011 and also has a 500,000 t/y supply deal with Japan's Marubeni. The company sold around 51% of the gas in India's 62 billion cm/y market and is opening an LNG-trading desk in Singapore to cope with future imports.




RWE Starts Gas Deliveries to Ukraine Press Release, April 15, 2014

RWE AG, via its trading and gas midstream arm RWE Supply & Trading, is the first European

supplier to commence gas deliveries to the Ukraine in 2014. Today, RWE re-starts deliveries to the

state-owned company “Naftogaz of Ukraine” with gas from its pan-European portfolio.

The gas flows via Poland to Ukraine. These supplies are governed by the existing 5 year framework agreement between Naftogaz and RWE Supply & Trading signed in May 2012, which foresees deliveries of up to 10 billion cubic meter (bcm) of natural gas per year subject to individually agreed contracts.

In 2013, RWE Supply & Trading has already delivered about 1 bcm to Naftogaz. RWE’s deliveries to the Ukraine are based on European wholesale price levels including delivery costs to the Ukraine. RWE believes that further significant volumes could be delivered to Ukraine if various transport restrictions at the Slovakian/Ukrainian border are politically and technically resolved within the next weeks or months.




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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]

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the local authe local authe local authe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthorities. 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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