New base special 17 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 17 April 2014 Khaled Al Awadi

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

Abu Dhabi's TAQA begins gas storage at new Dutch facility By Reuters

Abu Dhabi energy company TAQA said on Wednesday it had started injecting natural gas into its partially built Bergermeer storage facility in The Netherlands. Europe is seeking to diversify its energy supplies away from Russia and boost its storage capacity to prepare for a potential disruption to its gas supplies.

Scheduled to be completed next April, Bergermeer will nearly double the Netherlands' gas storage capacity, said TAQA, which has invested in the project alongside Dutch energy company EBN.

Energy suppliers will be able to store natural gas underground in the depleted Bergermeer gas reservoir and draw it down when demand rises. TAQA said it had sold all of the facility's long-term capacity and plans to auction the remaining short-term capacity in September. Once complete, it will provide 46 terawatt hours or 4.1 billion cubic metres of gas storage capacity, equivalent to the average annual gas consumption of 2.5 million Dutch households. Companies that have booked capacity include Statoil , EDF, Vattenfall and Gazprom , the company said.

European underground gas storage (UGS) facilities




About the Bergermeer Gas Storage facility :

It is intended to be the largest accessible gas storage facility in Europe. Bergermeer Gas Storage will double the capacity in the Netherlands for seasonal storage and make an important contribution to the development of the Netherlands’ ambition to become the Northwest European gas hub. Natural gas is the cleanest of all the fossil energy fuels and is vital to future sustainability of the energy supply in the Netherlands.

TAQA and EBN will invest more than EUR 800 million in the drilling of 14 new wells, the construction of the gas treatment installation in Alkmaar and the intervening pipelines. Bergermeer Gas Storage will give the development of the energy industry in the vicinity of Alkmaar a significant boost. In total, the installation of the gas storage facility will provide 3,300 man-years of work, 2,650 in the Netherlands.

Situated near the Dutch city of Alkmaar, and located 2,500 metres underground, the Bergermeer gas reservoir once held 17 BCM of natural gas. In the last 40 years the gas was extracted to provide energy, power and heat for the Netherlands. The Bergermeer reservoir has the ideal geological characteristics for gas storage and is strategically positioned: well connected to the gas

transport network, close to major cities and industrial centres and only 20 km from the BBL pipeline transporting gas between the Netherlands and the United Kingdom.




QDB, Qatar Shell offer seven new business opportunities to SMEs

By Peter Alagos Gulf-Times/Business Reporter

Qatar Development Bank (QDB) and Qatar Shell have revealed seven new “business opportunities” for Small and Medium-sized Enterprises (SMEs) during the second instalment of the annual “SME Business Opportunity Workshop” held yesterday at the Sharq Village & Spa in Doha.

QDB chief executive officer Abdulaziz al-Khalifa said participants of the event were representatives of shortlisted SMEs that were offered business opportunities in the fields of manufacturing; maintenance, repair, and recertification; services and onsite technical support.Al-Khalifa said the specialised business opportunities aim to encourage Qatari enterprises to tender and become potential suppliers for the Pearl Gas to Liquids (GTL)

plant. According to al-Khalifa, SMEs can choose from the following business opportunities: manufacturing of large open head steel drums, manufacturing of low voltage cables, manufacturing of electrical cable trays, maintenance, repair and recertification of ATEX two-way radios, maintenance and servicing of offshore diesel generator sets, servicing of custody flow meters, and supply of welding inspectors for onsite technical support.

Al-Khalifa also said the new business opportunities “demonstrate the high regard we uphold in the capabilities and operating standards” of local enterprises to handle contracts for the Pearl GTL plant. Qatar Shell managing director and chairman Wael Sawan described SMEs “as the cornerstone for achieving a sustainable economy in Qatar and a key to facilitating a thriving private sector and diversified economy.”

“We are very happy to continue to join hands with QDB in awarding local businesses with new contracts that will enable them to develop world-class standards and compete on a level playing field globally,” Sawan said. He added: “At Qatar Shell, we have confidence in the quality and capabilities of local suppliers and trust in their ability to add value to our operations in Qatar. The new business opportunities we are offering to Qatari SMEs allow them to become the supplier of choice for the Pearl GTL plant.”

At the first workshop held last year, Sawan said the contract for the manufacturing of personal protective equipment was awarded to Qatari Industrial Equipment while GEA Batignolles Technologies Thermiques Qatar received the heat exchanger re-tubing contract. The third contract for translation services, Sawan added, was awarded to Snow Comms Conceptual Communications and Events.

Qatar Shell media relations manager Ali Reyad al-Ansari gave Gulf Times an update of the status of the three contracts awarded last year: “There’s been great development and the companies have done well. They came in with a clear vision of wanting to support both the industry and Qatar Shell.” Al-Ansari said the translation services awarded to Snow Comms Conceptual Communications and Events “have been ongoing as early as last year” while the first batch of orders of personal protective equipment from Qatari Industrial Equipment will be arriving this month.

“The heat exchanger re-tubing contract received Qatar Shell’s full support to build their capacity to handle the contract, and starting June 1 of this year, they will start catering to our assignments. The company is doing well and is ahead of schedule,” al-Ansari said. Al-Ansari said interested companies who attended the workshop will be invited to register from April 17 to 24. Once shortlisted, they will be invited again to bid for tender by May 10. An awarding ceremony will be held by the end of the year to announce the winning contracts, al-Ansari added.

QDB chief executive officer Abdulaziz al-Khalifa

(right) and Qatar Shell chairman and managing director Wael Sawan




Iraq SOC Common Seawater Supply Project at bidding stage

The state-owned South Oil Company (SOC) is currently evaluating the offers for the giant Common Seawater Supply Project (CSSP) to be built in the south of Iraq to provide all the water required by the exploration and production of the oil and gas fields in the Basra Province.

The south of Iraq is well-known for its concentration of oil and gas fields classified among the largest in the world. Because of wars and ban these fields have remained underdeveloped during decades, but since the licences round organized in 2009 by Baghdad Government all these fields are subject to $ multi billion development programs let by major companies such as BP, Eni, ExxonMobil, Lukoil, Petronas, Shell, Total.

Until 2012 all these projects were moving slowly because of the poor commercial conditions of the Technical Services Contracts (TSC) signed with Baghdad and also because of the lack of infrastructures to support such massive capital expenditure programs.

But in 2013, the companies and Baghdad Authorities aligned on these issues and redefined more realistic targets for the plateau production to be reached in the respective fields. Since then all the projects are moving actively forward including the infrastructures projects driven by the Oil Ministry of Iraq through the national oil companies (NOCs) such as SOC.

Power generation, export pipelines and this Common Seawater Supply Project are on the top of the list as to enable the international oil companies (IOCs) to implement their own plans. To be developed in phases the CSSP is expected to provide the companies with the required water to boost the oil and gas production.

Using the enhanced oil recovery (EOR) techniques, the companies are targeting recovery rates above 50% from Iraq oil fields. These EOR techniques suppose to inject large quantities of water in the reservoirs in order to maintain the pressure and flush the crude oil from all the pockets.

South Oil awarded CSSP PMC contract to CH2M Hill

In 2012, South Oil awarded the project management consultancy (PMC) contract for the Common Seawater Supply Project to the US-based company CH2M Hill with the mission to prepare:

- Pre-front end engineering and design (pre-FEED)

- Environmental and safety assessment

- Front end engineering and design (FEED) contract

- Engineering, procurement and construction (EPC) contracts for the different packages of the project




From this preliminary work the Common Seawater Supply Project should include:

- Power generation

- Pumping stations

- Water treatment facilities

- Pipelines network

Designed to supply the giant fields of West Qurna-1, West Qurna-2, Zubair, Majoon, Missan, Rumaila, Halfaya, Gharraf and other normal fields of the south of Iraq, the CSSP should have a capacity of 12.5 million barrels of water per day.

Overall South Oil is planning to invest $10 billion capital expenditure in the Common Seawater Supply Project. Because of the progressive exploration – production of the oil and gas fields, SOC is planning to phase up the development of CSSP.

For CSSP Phase-1, South Oil is targeting to treat, transport and distribute 5.2 million barrels per day of seawater for an estimated $3.5 billion capital expenditure.

South Oil qualified five engineering companies. The technical offers were submitted in February 2014 and the commercial offers are expected on second quarter.

Even if CSSP suffered from delays, South Oil is targeting to award the FEED contract in 2014 in order to sanction the different EPC packages in 2015 for the first operations of the Common Seawater Supply Project Phase-1 by 2017.




Iraq: ShaMaran announces Atrush-4 well test results Source: ShaMaran Petroleum

JV partner ShaMaran Petroleum has reported the results of the Atrush-4 appraisal/development

well ('AT-4') drilled in the Kurdistan Region of Iraq. The AT-4 well was spudded on October 20,

2013 using the DQE31 drilling rig and reached Total Depth of 2916m MD on January 23, 2014.

The well was deviated well from the AT-1 well pad with the bottomhole location approx. 2.2 km SE

of the surface location.

Three separate cased hole drill stem tests were conducted in the Jurassic reservoir with maximum rates totalling 9059 bopd of 27-28 API from two of the tests. None of the tests produced formation water. Downhole samples for PVT analysis and surface samples for oil assay studies were taken. Well testing operations were completed on April 7, 2014. AT-4 has been suspended as a Phase 1 producer. The drilling rig is now moving to drill the Chiya Khere-5 development well ('CK-5'; 2014 revised well nomenclature) which is expected to spud in May 2014.

The Atrush Block is operated by TAQA

Atrush, a subsidiary of Abu Dhabi National

Energy Company which holds a 39.9% working interest in the Block. ShaMaran

Petroleum holds a 20.1% working interest through its wholly owned subsidiary, ShaMaran Ventures (100% owner of General Exploration Partners). Marathon Oil KDV, a wholly owned subsidiary of Marathon Oil Corp, holds a 15% working interest in the block. Subsequent to their back-in the Government of the Kurdistan Region of Iraq holds a 25% working interest.

TAQA has secured oil and gas exploration rights in the new Atrush field in the Kurdistan region of Iraq. The TAQA-operated Atrush Block, located 85 km northwest of Erbil, is expected to initially produce approximately 30,000 barrels of oil per day (bpd) with first oil expected by early 2015.

The company plans to invest more than $300 million in Phase I in drilling three production wells and the construction of a central processing facility. TAQA and its partners, Kurdistan Regional Government’s (KRG) Ministry of Natural Resources, ShaMaran, and Marathon, have an active drilling programme on the Atrush Block and are continuing to appraise the area for further development.

Discovered in 2011, the Atrush field is expected to provide long-term benefits to the region and the community. The approval of the Field Development Plan by the KRG provides for a 25-year period during which TAQA and its partners expect to maximise recovery of the oil resources.

Subject to approval, the Phase 2 development is expected to include another 30,000 bpd production facility. TAQA and its partners will also evaluate the feasibility of producing associated natural gas for delivery to the domestic market. TAQA estimates the field’s peak production to reach 100,000 bpd.




Daewoo E & C wins GOSP contract for Iraq’s Zubair oilfield http://www.oilreviewmiddleeast.com

South Korea’s Daewoo Engineering & Construction has won approval from Iraq to build a US$588.8mn gas and oil separation plant (GOSP) at the Zubair oilfield

The South Korean company will carry out engineering, procurement and construction (EPC) work on the plant, which will situated in the south of the oilfield. The plant’s output is forecasted to reach 850,000 bpd in 2017, according to Italian operator Eni.

The development of the Zubair oilfield is led by Eni with 32.8 per cent, Occidental Petroleum Corporation with 23.4 per cent holding, Korea Gas Corporation (KOGAS) holding 18.8 per cent stake and Iraq’s state-run Missan Oil Company with 25 per cent stake.

Eni, Occidental Petroleum Corporation and KOGAS had signed a 20-year deal with Iraq in 2010 to develop Zubair, whose production is currently at 320,000 bpd.




UK: Remote, oil-rich Shetland elbows way into Scotland's independence vote Source: Reuters

Twelve hours by ferry from the Scottish mainland, hundreds of miles from Edinburgh and closer to Oslo than London, the windswept Shetland islands have their own aspirations about Scottish independence. Some of the 23,000 inhabitants even want their own. Many Shetlanders see the Sept. 18 vote on whether Scotland should end the 307-year-old union with England as an opportunity to gain control over local services and a share of revenues from the oil pumped from the North Sea.

'The oil belongs to us. We don't have to argue about that. It is ours,' said Shetlander Hazel Mackenzie, 43, who works in the livestock auction house in Shetland's main town of Lerwick. 'If we could have all the revenue from all the oil then we could probably be very self-sufficient.'

One example: Over the last four decades, Britain's oil fields have pumped out 42 billion barrels of oil equivalent; about 20 percent of it has flowed through Shetland, piped in to BP's Sullom Voe, one of Europe's biggest oil terminals. Another is that about a fifth of the oil and gas thought still to be found off Britain's coast is believed to lie to the west of Shetland.

As the Scottish independence vote nears, Shetland's council has joined forces with two other island councils, Orkney and the Western Isles, to ask for greater control of local services and new fiscal arrangements to enable them to benefit from the oil, fisheries and renewable energy resources surrounding them. At stake for the Scottish government could be its share of the 7 billion pounds or so of annual oil production taxes which Edinburgh wants in the event of a 'Yes' vote for independence.

Petrofac is lead contractor on a £500m onshore gas

plant for Total E & P UK Ltd and Dong E&P (UK) Ltd in

the Shetland Islands.




Netherlands-Germany crude oil pipeline shut down after spill Reuters - UK Focus

LONDON, April 16 (Reuters) - A 320,000 barrel-per-day crude oil pipeline between Rotterdam and

the BP and Shell refineries in the Ruhr area in Germany was shut down on Wednesday after a

minor spill, its operator said.

The spill on the Rotterdam-Rijn Pijpleiding (RRP) pipeline occurred during work on a section near Venlo on the border between the Netherlands and Germany. The pipeline delivers crude oil from Rotterdam to Shell's 195,000 bpd Godorf refinery and BP's 266,000 bpd Gelsenkirchen refinery. It is owned by the two oil majors. "During works on the pipeline a leak occurred on the line. The crude pipeline has been shut down until it is repaired," a company official said.

The spill did not cause any injuries or fire, he added.

BP's 266,000 bpd Gelsenkirchen refinery




Bilfinger to Deliver New Systems for Emden Gas Terminal in Germany Press Release, April 16, 2014;

Bilfinger has received an order from Linde for the manufacture and installation of system modules

and piping technology for the new natural gas terminal in Emden.

The order is valued at about €30 million. The natural gas terminal in Emden is a key distribution station for gas that is imported from the Norwegian energy company Gassco to Germany. A quarter of the natural gas consumed in Germany will be handled by the plant.

The Group company Bilfinger VAM Anlagetechnik will pre-fabricate and subsequently install around 150 plant modules as well as piping components and steel parts on the grounds of the natural gas terminal. Some of the plant components weigh up to 100 tons. In addition, Bilfinger VAM will also deliver corrosion protection and insulation. Work is scheduled for completion in mid 2015.

Emden Gas Terminal in Germany




Hallin Supports Subsea 7 in Offshore Installation Work in Bay of Bengal Hallin Marine - Press Release

Hallin Marine, a Superior Energy Services company, reported Wednesday the start of a new subsea field development project for Oil and Natural Gas Corporation Ltd. (ONGC) in the Bay of Bengal offshore India working in support of Subsea 7. The project began in March and is expected to take three months. It is located in the G1 deepwater region of the highly productive G1-GS15 offshore production field.

India has, after China, the second-largest proven oil reserves in the Asia-Pacific region. Most of India’s crude oil reserves are located around the western coast and in the northeastern parts of the country. Considerable reserves are located in the offshore Bay of Bengal and these are now being developed.

“Return business is always a great vote of confidence for any service-provider, particularly in the oil and gas sector where the ability to work safely and efficiently in unpredictable operating conditions is essential,” says Phil Chamberlain, Hallin‘s director – Service Delivery. “Having completed Campaign 2 in 2013 successfully, on time and within budget, we are naturally very pleased to have been selected by Subsea 7 to support Campaign 3.”

Hallin will be providing the subsea operations vessel Ullswater with survey, air diving, and marine crews with Subsea 7 providing flexible and umbilical laying equipment and construction crew.

Fully equipped for wellhead servicing, inspection and construction diving as well as for installation support, the 256-foot (78-meter) long by 67-foot (20.4-meter) wide SOV Ullswater incorporates a 15-man saturation diving system capable of operating at 656 feet (200 meters) depth plus a three-man moonpool-launched diving bell. An integral 72-foot (22-meter) diameter helideck enables fast transfer of crew and operating staff. Up to 120 personnel can be accommodated on board.

“It is a pleasure to be working with Hallin Marine again,” says Jean Legrux, vice president Projects & Operations, Asia Pacific & Middle East at Subsea 7. “This is repeat business for Subsea 7 and Hallin which reflects the trust afforded by Subsea 7 as a result of our successful operation and cooperation on ONGC’s behalf during 2013. We look forward to a safe and successful completion of Campaign 3.”

Hallin Marine, Subsea 7 hired by ONGC for Bay of Bengal work




Petronas plans Malaysia Block SK 316 second platform

The Malaysia national oil company (NOC) Petronas is qualifying the engineering companies and contractors to be invited to bid (ITB) for a second platform to be installed on the Block SK 316 to develop the Kasawari gas field offshore the Sarawak Province in Malaysia.

Since 2011, Petronas accumulated discoveries in the natural gas and condensate prolific Block SK 316. Located 180 kilometers north of Bintulu in the Sarawak province by 100 meters of shallow water depth in the South China Sea, the Block SK 316 belongs to the Central Luconia Province as

part of the Sarawak Basin.The exploration in the Block SK 316 started with the NC3 and the NC8SW-1 discovery wells, then with the Kasawari-1 successful drilling estimated respectively to 2.6 trillion cubic feet (tcf), 450 billion cubic feet (bcf) and 5 tcf reserves of gas.

With 5 tcf in-place reserves out of which Petronas expects to recover 3 tcf as 2P reserves, Kasawari pops up among the largest discoveries of non-associated gas in Malaysia contributing for 4% of the current natural gas reserves of 14.8 million barrels of oil equivalent (boe) in the country .

Considering that 1 tcf of natural gas reserves is necessary to run 1 million tonne per year (t/y) liquefied natural gas (LNG) train, the Block SK 316 fits perfectly to add the required reserves of

natural gas to supply the ninth LNG Train under construction in Bintulu.

Because of the structure of the different fields, Petronas is planning to develop the Block SK 316 in phases.

Petronas to organize competitive FEED for Kasawari-2

In September 2013, Petronas awarded the Kasawari phase-1 project to the consortium made of the French engineering company Technip, together with the local contractor Malaysia Marine and Heavy Engineering Sdn (MMHE) and is now working on the qualification of the bidders for the Kasawari Phase-2.

Previously Technip had carried out the conceptual study for the development of Kasawari.

In order to synchronize the offshore part of the Ninth Bintulu LNG Train project to secure the natural gas supply, Petronas has decided to proceed by competitive front end engineering and design (FEED) for the Kasawari Phase-2 project.

In practice the competitive FEED means that the winner of the FEED contract should be awarded the EPC contract in following since he proposed the lowest price based on its own FEED costs estimate.




From Technip conceptual study, this Kasawari phase-2 project should include:

- Central processing platform (CPP) - Nine slots wellhead platform - Linked-bridge central gathering and flare tower platform

Designed with eight legs the Kasawari-2 central processing platform should weight 37,000 tonnes (t) including 19,000 t topsides. As Petronas is willing to develop Kasawari phase-2 on fast track, it should make a decision for the competitive FEED on the second quarter

2014 in order to start construction in 2015 with first production expected in 2017.

About Malaysia’s Energy :-

• Malaysia is the second largest oil and natural gas producer in Southeast Asia, the second largest exporter of liquefied natural gas globally, and is strategically located amid important routes for seaborne energy trade.

• Malaysia's oil reserves are the fifth highest in Asia-Pacific and one of the top 30 highest reserves in the world. • Declines in production at Malaysia's major producing oil fields in the past decade have led government efforts

to encourage investment in enhanced oil recovery and development of smaller, marginal, and deep water fields.

• As a result of rising regional and domestic demand for crude oil and oil products, Malaysia plans to become a regional oil trading and storage hub by increasing the country's refining and storage capacity.

• Malaysia was the world's second largest exporter of liquefied natural gas after Qatar in 2012. • Malaysia's natural gas production has risen over the past two decades to serve the growing domestic demand

and export contracts. Recent foreign investment in deep water and technically challenging fields primarily in the Sarawak and Sabah states provides impetus to maintain natural gas production levels over the next few years.

• Malaysia has an extensive gas pipeline network running through Peninsular Malaysia and pipelines that connect offshore fields in all three states to key infrastructure onshore.

• Malaysia remains a key exporter of LNG, second largest in the world after Qatar in 2012; however, the limited natural gas supplies and rising demand in the western part of the country triggered investment in regasification terminals, the first which commenced in 2013.

• Malaysia's electricity demand, mostly met by natural gas and to a lesser extent coal, continues to expand rapidly; therefore, the country is seeking to add capacity to avoid future power shortages.

• A majority of Malaysia's electricity generation capacity is natural gas-fired, although gas shortages in Peninsular Malaysia and growing electricity demand in recent years have spurred the use of other fuels such as coal, diesel, and hydroelectricity.




LNG Will Be Key to Decarbonize Economy and Improve Energy Security, Study Says Source: UNECE, April 16, 2014

Liquefied Natural Gas (LNG) has the potential to turn the natural gas market into a truly global one,

thus allowing natural gas to play a full role in transforming the energy system to underpin a

sustainable future, the United Nations Economic Commission for Europe (UNECE) said in a

statement.

In addition, in view of the uncertainties caused by recent geopolitical developments in Europe and the Mediterranean basin, LNG can improve regional and global energy security. These objectives can only be met if governments implement enabling policies that are clear, transparent and stable over the long-term.

These are the main findings of the study on the Current status and perspectives for LNG, completed by a team of international experts working under the auspices of UNECE, released on Tuesday in Geneva.

The study finds that:

• LNG represents 10% of global natural gas demand (estimated in 2012 at 3,300 bcm) and 32% of global gas

trade, and is growing faster than overall gas demand.

• Because of the flexibility it offers in the delivery of gas, offering the possibility to divert flows or re-export as

market conditions change, LNG is a key feature in the globalization of the gas market, especially if a global

LNG pricing pattern emerges.

• LNG gives buyers many options to secure gas supply without necessarily having to commit to long term/high

volume gas contracts with a specific producer.

• Spot/short-term transactions represent 30% of total LNG trade today and prospects are that the LNG market

will enjoy a fair degree of liquidity by 2020.

• The current LNG price at Henry Hub (Louisiana) is less than half the price at European hubs and less than

one-fourth the average price paid in Asian markets. LNG transport costs alone do not justify such

differences.

• Since access to gas is not constrained by pipeline capacity availability or gas transit disputes, LNG can

improve the security and diversification of supply.

• Given the size and cost of its infrastructure, LNG is ideal for small, isolated markets or markets that require

negotiating leverage with a supplier.

• LNG has underpinned strong growth in gas-fired power generation in countries that changed their nuclear

policies following the Fukushima accident.

Regional trends

• Asia represents 60% of global LNG supply and its share is expected to grow in view of rising demand from

emerging economies and attractive prices for LNG. In Japan, LNG demand for power generation increased by

around 30% in fiscal year 2011 after the Fukushima nuclear accident. China and India will be especially

important in future LNG market dynamics

• In Europe, decreasing domestic gas production and efforts to diversify supply sources are drivers for LNG

growth. LNG’s market share is forecast to move up from 15% in 2010 to 24% in 2020 according to the BP

Outlook

• US shale gas deliveries grew from about 20 bcm in 2005 to an estimated 280 bcm in 2013, 40% of total US

gas production. The US Department of Energy has authorized exports of 35 bcm of surplus natural gas in the




form of LNG in 2016, and further projects have been submitted for approval. Overall US exports could reach

around 70 bcm by the mid-2020s. LNG exports from U.S. and Canadian terminals are economically

competitive in all major markets, including Europe and Asia Pacific, based on forward gas price differentials.

The study also identifies a series of challenges:

• LNG markets today remain regional because the availability of shipping does not match the fast

growing LNG trade and because a fairly limited number of global operators control a substantial

share of “free” LNG.

• An integrated LNG project typically takes about a decade to put into place and requires high

upfront capital investment. This calls for strong commitments among partners, including financial

participants and clear long-term policies.

• Is it possible to find business models suited to attract investment that are compatible with

competition-seeking rules such as unbundling commercial activities from infrastructure

management, or with the skepticism of authorities about long-term contracts.

• Full harmonization of traded LNG quality is unlikely, but some degree of harmonization of LNG

specifications is needed to ensure it is acceptable at all LNG terminals and by a majority of end

users (especially for combined cycle gas turbines).

There is a huge body of knowledge on operational issues regarding LNG that must be normalised and disseminated if LNG is to become a truly global industry. Players throughout the LNG chain, including regulators, should be encouraged to standardize and exchange information. Such efforts would improve compatibility and efficiencies and maintain safety levels throughout the industry.




Indonesia: Peak Oil and Gas completes seismic survey over North Sumatra Source : Peak Oil & Gas - News

Peak Oil and Gas majority controlled company, Renco Elang Energy Pte Ltd (REE), is Operator of the South

Block A (SBA) Production Sharing Contract (PSC) with a 51% working interest (Peak earning net 38.25%).

Peak, through REE, together with

seismic contractor, Quest

Geophysical Company, and with the

assistance of Joint Venture Partner

KRX (a wholly owned subsidiary of

Lion Energy), has completed seismic

recording operations acquiring 183

km of 2D seismic. During the survey

an extra three lines were acquired

over the shallow Paya Bili lead due

to positive results from the initial

seismic. In completing the seismic

survey Peak logged around 1.2

million man hours incurring only

one, relatively minor, Lost Time

Injury (LTI). Data on field and brute stacks is of good quality and processing is proceeding at 'Mega Energy

Processindo' (MEP), an experienced processing company based in Jakarta.

Drilling prospects will be matured following receipt of final processed data,

with a drilling location to be selected in the near term to target an attractive

shallow oil prospect for drilling later this year, to be followed in 2015 by a

deeper, wet gas, drill target. Early planning for 2014 drilling is underway and

an operational schedule will be finalised over the next few months.

High quality live oil encountered in hand drilled shallow wells on flank of Simpang Lead

During seismic line clearing operations over the Simpang lead, high quality, live oil was sampled from shallow wells, hand drilled by locals and producing around 100L (3-4 Jerry Cans) per day. A similar occurrence was also ncountered at Alur Sentang, to the north of the Paya-Bili lead (as indicated on above map). Samples of the oil being produced were obtained and analysed indicating very high quality oil (results below). The Simpang oil sample is described as low viscosity, brownish black liquid, smelling like a mixture of diesel and petrol. The gas chromatography (GC) profile is characterized by suites of normal paraffin’s ranging from nC5 to nC25+. There is a relatively low abundance of waxy components (>nC25) and no evidence of biodegradation. The GC fingerprint profile is consistent with the existence of light oil, confirmed by analysis as a 50° API light, high quality oil. These shallow oil shows validate the presence of a very active petroleum system in the immediate locality, close to SBA Leads, and supports the oil potential in the block.




New gas pipeline infrastructure under construction through SBA

SBA is prospective for both oil and gas exploration with both commodities in strong demand within Sumatra. A new gas pipeline is under construction between Arun and Medan, the largest city in Sumatra and the fourth largest city in Indonesia. The pipeline passes through SBA (above map) and is reported to have a capacity of 400 MMSCFGD and will transport gas from the Arun gas facilities (including an LNG receival terminal currently being built). Peak understands it will be an open access pipeline with around 200 MMSCFGD forecast spare capacity. The pipeline is located close to key prospects, it represents a potentially attractive gas transportation option and could assist in commercialising any gas discovery Peak should make through its drilling program




New seismic now being processed and interpreted to mature best prospect for drilling around the end of

this year

The successfully acquired seismic data was located to mature and prioritise five oil and gas leads (shown

on the above map) to prospect status, one of which will be selected for drilling later in the current year.

On an aggregate basis, as previously reported, the five oil and gas leads provided an Unrisked P50

Prospective Resource1 of 439 BCF of gas and 47 MMBBLS of oil and condensate. The largest of the gas

leads has been mapped to have the potential to contain an Unrisked P50 Prospective Resource1 of 285

BCF recoverable gas and 16 MMBBLS condensate. The shallow oil leads targeted have P50 Prospective

Resources1 ranging in size from 4 to 8 MMBBLS and represent attractive near term commercialisation

opportunities.

SBA providing a new value proposition for the company

Located in a highly regarded area of the prolific North Sumatra Basin, in close proximity to established

pipelines and facilities, containing proven hydrocarbons with gas and oil flows from old wells and

scheduled for new drilling around the end of 2014, SBA is maturing as a new value proposition for the

company. The new phase of exploration is targeting overlooked high quality, shallow oil and large scale

wet gas, underpinned by growing energy demand leading to attractive gas prices in the rapidly expanding

economy of the region. The successful completion of the SBA Seismic Survey, contemporaneously with the

presence of oil in hand drilled shallow wells on the flank of one our major leads, is highly positive for the

potential of the planned drilling of an attractive shallow oil target later this year (2014).

The construction of new gas pipeline infrastructure through SBA provides a new incentive to gas

exploration in the block as a potential contribution to the increasing energy demand required to underpin

the continuation of strong economic growth in the province. Peak is excited by the potential for material

gas-condensate discoveries in the block to help meet the region’s growing gas demand. We anticipate the

completed seismic program

will also mature an attractive

gas-condensate prospect for

drilling in 2015.




Eni lines up FLNG unit for Mozambique gas Offshore Energy Today

Italy’s oil and gas company Eni is thinking of developing its offshore gas field in Mozambique

using a floating LNG unit, Bernama has reported.

Bernama further says that ENI on Tuesday published a “Public Announcement for Expression of Interest” for an FLNG facility, through the Mozambican media, calling companies to express their interest, after which they will receive a potential “Invitation to Tender” package from ENI. This could be the first of three FLNG units Eni has planned to use for development of its gas rich offshore fields in the Eastern African country.

The company in February said that in order to develop Mamba discovery resources in Area 4, one initial onshore LNG train is planned, plus two FLNG units, with a total capacity of 10 million TPA and an option for a further onshore LNG train. Eni also said it was ready to launch the development of the resources at its Coral gas discovery through a floating LNG.




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

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Khaled Al Awadi is a UAE National with a total of 24 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

TechnTechnTechnTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for ical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for ical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for ical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for

the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations 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 EManager in EManager in EManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed ed ed ed

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 oof gas pipelines, gas metering & regulating stations and in the engineering oof gas pipelines, gas metering & regulating stations and in the engineering oof gas pipelines, gas metering & regulating stations and in the engineering of supply f supply f supply f supply

routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for OUs for OUs for OUs 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 EnergEnergEnergEnergy program broadcasted y program broadcasted y program broadcasted y program broadcasted

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

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NewBase 17 April 2014 K. Al Awadi

Economy & Finance

New base special 17 april 2014