New base 727 special 12 november 2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 1

NewBase 12 November 2015 - Issue No. 727 Edited & Produced by: Khaled Al Awadi

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

ADIPEC: 2015 AWARDS CELEBRATE EXCELLENCE, BEST PRACTICE AND INNOVATION IN ENERGY

By PennEnergy Editorial Staff

The distinguished Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) Awards yesterday announced the 11 winners of its 2015 edition. Celebrating innovation and commitment to excellence in the energy sector, the prestigious awards were presented to eight category winners during the ADIPEC Awards Gala Dinner at the Emirates Palace.

Hosted by the Abu Dhabi National Oil Company (ADNOC), the event concluded the opening day of ADIPEC 2015, one of the world’s largest oil and gas events and a global meeting point for professionals in the energy sector.

Winning entries represented individuals, companies, and projects that demonstrated qualities of merit, including ethical oversight, sustainability, and benefit to the community – setting benchmarks for best practice in the region and worldwide.

Continuing their record-breaking streak, the awards this year attracted wide international attention, receiving 501 submissions from more than 247 organisations in 32 countries. Posting continuous growth since their launch in 2010, the awards received 105 more submissions than last year, representing six more countries, and with the participation of a remarkable 147 more organisations compared with 2014.

The distinguished Abu Dhabi International Petroleum Exhibition and Conference

(ADIPEC) Awards yesterday announced the 11 winners of its 2015 edition.




Thirty-three nominees were shortlisted after the opening round of assessment by the Regional Select Jury, a panel of 28 industry experts from the region’s leading energy companies, academic institutions, and professional associations. Each shortlisted entry was thoroughly screened by members of the Regional Select Jury (RSJ) at the RSJ Meeting, with the winners selected on the basis of a meticulous evaluation process.

Abdul Munim Saif Al Kindy, Chief Executive Officer of the Abu Dhabi Company for Onshore Oil Operations Ltd., (ADCO), and Chairman of the ADIPEC Awards, said, “The ADIPEC Awards were established to highlight the exceptional efforts and work observed at local, regional, and international levels. We have witnessed the development of the sector in the region through increasingly remarkable submissions year on year. In recognising these high levels of commitment and dedication, we hope to set new standards in the energy industry each year.”

New to the awards this year is the 'Best Dissertation of the Year' Award, which recognises exceptional academic efforts displayed by PhD students from disciplines that lend themselves to the development of the energy sector, as well as the ‘Best Practice’ Award, which identifies initiatives or programmes that have proven to enhance internal business processes, structures, or cultures.

Members of the RSJ said the exceptional quality of submissions made by the participants this year presented them with a challenge when selecting the winners.

“In addition to encouraging innovation in the oil and gas industry, the ADIPEC Awards provide visibility for the top performers,” said Dr. Thomas Steuber, Professor of Geology and Chairman of Petroleum Geosciences at The Petroleum Institute, and a member of the RSJ.

“As a juror for the ‘Best Dissertation’ category, I was truly impressed by both the quality and the geographic scale of submissions – many entries came from not only the region, but around the world. I truly believe that by acknowledging best practice, we can inspire excellence.”

Winning two awards this year, the Petroleum Development Oman has reaffirmed its commitment to achieving sustainability through innovation. Receiving ‘Best Oil and Gas Mega Project’ Award for the world’s first and largest miscible sour gas injection project, and the ‘Best Oil and Gas Innovation or Technology (Surface)’ Award for using solar steam generation to enhance oil recovery, the company continues to demonstrate its relentless efforts to advancing the oil and gas industry.

“We are truly pleased and honoured to have receive these awards, and we hope others will benefit from what we have learned,” said Amran Al Marhubi, Technical Director at the Petroleum Development Oman. “Both projects are genuine examples of innovation – in the second winning project, for example, we use solar energy to generate steam that we can then inject into the wells to enhance oil recovery, saving energy and therefore reducing CO2 levels. I like to think of it as ‘injecting sunshine’ into the oil and gas industry to make it more sustainable.”

Winner of the ‘Oil & Gas Woman of the Year’ Award, Hosnia Hashim, Vice President – Operations at the Kuwait Foreign Petroleum Exploration Co. (KUFPEC), said, “It is an honour to receive this prestigious award, and I believe that such recognition reinforces the message to all women that there is room for them to achieve success in the oil and gas industry.”

“The support of my colleagues in the oil and gas community played a valuable role in my career growth, and I now want to pass this on to aspiring women professionals. Female role models are




very important, and the ‘Oil and Gas Woman of the Year’ Award demonstrates to the younger generation of women the many exciting opportunities that await them in the energy sector,” added Hashem, who was also named one of Forbes Most Powerful Arab Women in 2014.

Jean-Philippe Cossé, ADIPEC 2015 Event Director at dmg events, said, “The annual ADIPEC Awards ceremony is an important event in the energy sector, serving as an idea bank that inspires innovation and drives the exchange of best practice among industry professionals. With increased international recognition and higher enthusiasm levels from local, regional, and global companies, the ADIPEC Awards will continue to help shape the future of the oil and gas industry.”

The winners of the ADIPEC 2015 Awards are as follows:

Category 2 - Best Oil & Gas Innovation or Technology

(Surface or Sub-Surface)

Surface: Petroleum Development Oman, GlassPoint Solar - Solar Steam Generation for Enhanced Oil Recovery

Category 3 - Best Oil & Gas CSR/HSE Project or Initiative ADCO - Achieving Sustainable Zero Flaring through Spiking Gas Compressor at ADCO Shah Field

Category 5 – Best Oilfield Services Company (Local, Regional, or International) Local: EMDAD LLC - EMDAD LLC Integrated Service Company

Regional: Zamil Offshore Services Company - Offshore Fleet, Services Expansion & Quality Enhancement

International: Weatherford Manufacturing and Services - Ahead of the Curve, Proudly Made in the UAE

Category 6 - Young ADIPEC Engineer Abubaker Saeed, Saudi Aramco

Category 7 - Best Dissertation of the Year Saif Al-Ghafri, Imperial College London - Phase Behaviour and Physical Properties of Reservoir Fluids

Under Addition of Carbon Dioxide

Category 8 - Best Practice Award ADMA-OPCO, NDC, Nobel-Denton, LOC - New Rig Pre-loading Procedure on Difficult Location




Iraq: Occidental to sell Zubair stake to Iraq's South Oil -officials Reuters + NewBase+ Zawya

Occidental Petroleum Corp, the fourth-largest U.S. oil producer, will sell its stake in the 4-billion-barrel Zubair oilfield to Iraq's state-run South Oil Company (SOC), Iraqi oil officials said on Wednesday. "Occidental asked the ministry for permission to sell its stake in Zubair field and the ministry is in the process of approving the request. South Oil Company will acquire Occidental's stake," ministry spokesman Asim Jihad said.

Occidental sought permission in mid-October, two SOC officials said. Reuters could not immediately reach officials at Occidental for comment. Senior Occidental executive Vicki Hollub said last month the company was interested in selling non-core assets in the Middle East. Occidental holds 29.69 percent of the field in southern Iraq. Italy's Eni operates the field and holds 41.56 percent, while South Korea's KOGAS has 23.75 percent and Iraq's state-run Missan Oil Company owns 5 percent. Eni, U.S. Occidental Petroleum Corp and KOGAS signed a 20-year deal with Iraq in 2010 to develop Zubair. The oilfield is pumping around 352,000 barrels per day, the SOC officials said.

The Az Zubair Field, also known as Az-Zubayr, is an oil field located in southern Iraq, west of Basrah. It is one of the largest fields in the world and was discovered by the Basrah Petroleum Company, an associate of the Iraq Petroleum Company, in 1949. It has 4.5 billion barrels (~6.1×108 t) of proven reserves and currently produces 195 thousand barrels per day (31.0×103 m3/d) but in the next years, under the field's expansion programme, production is expected to reach a plateau level of 1.125 million barrels per day (178.9×103 m3/d). The development contract has been awarded to a consortium led by Eni (32.81%) with Occidental Petroleum Corporation (23.44%), Korea Gas Corporation (18.75%) and Iraq's state-run Missan Oil Company (25%).




Cameroon: Bowleven commences extended well test at the Moambe well onshore Source: Bowleven

Bowleven, the Africa focused oil and gas exploration group traded on AIM, announced Wednesday that, following the installation of testing equipment, the Moambe well in the onshore Bomono Permit has now commenced flowing hydrocarbons. The extended well testing programme at Moambe is planned to determine the productivity and connectivity of the shallower reservoir units. It is intended that these reservoir units will provide the basis for the initial supply of gas for power generation under a development scheme formulated with Actis and Eneo in Cameroon. Further update announcements will be made in due course, as appropriate.




Kenya/Ethiopia: Africa Oil provides update on operations in Kenya and Ethiopia Source: Africa Oil Corp

Africa Oil Corp has announced an update on its operations in Kenya and Ethiopia. Following the drilling of the successful Amosing-5A and Twiga-3 appraisal wells in Kenya, Africa Oil has spudded the Emesek-1 basin opening well in the undrilled North Lokichar Basin.

Kenya In the third quarter of 2015, the Amosing-5A exploratory appraisal well in Block 10BB was drilled as a test of an undrilled fault block. The well encountered an estimated 15 to 28 metres of net oil pay in a downflank position and successfully proved a northern extension to the Amosing field.

The Twiga-3 exploratory appraisal well in Block 13T encountered sands within the Lokone Shale sequence that are interpreted as good quality oil bearing reservoir over a gross interval of 120 metres. This result will be assessed in future exploration and appraisal activities, stepping out into the South Lokichar basin to further define this encouraging additional oil potential.

Following completion of appraisal activities, the Marriot 46 is now drilling the Emesek-1 basin opening well, which will test the undrilled North Lokichar basin. The well was spudded on 15 October and drilling is ongoing. Following Emesek-1, the Marriot 46 will move to drill the Etom-2




well in an undrilled fault block adjacent to the Etom oil discovery. The rig will then move to drill the Cheptuket-1 exploration well in Block 12A and will test a basin bounding structural closure in the undrilled Kerio Valley Basin, in a similar structural setting to the successful Ngamia and Amosing discoveries.

The production phase of the Extended Well Testing (EWT) programme has been completed at the Amosing field and is ongoing at the Ngamia field. Pressure communication was observed during the Amosing EWT in all five reservoir zones tested over distances of approximately 330 to 450 metres. These results prove reservoir communication over distances suitable for field development. The production phase of the Ngamia field EWT commenced in September. Results to date indicate well productivity in line with expectations and proven communication in one zone to date.

East Africa Development

Discussions with the Government regarding the draft field development plan for the discoveries in the South Lokichar Basin continue positively, with targeted submission by year-end 2015. Preparation for FEED is also under way, and is expected to commence in 2016.

In August 2015, a bilateral agreement was reached between the Presidents of Uganda and Kenya adopting the Northern Kenya route for the regional crude oil pipeline, subject to certain conditions. Africa Oil continues to support both countries in moving this project forward as quickly and efficiently as possible taking into account the needs of all stakeholders.

Ethiopia

Seismic activities have been completed on the Rift Valley Block and the contractor has demobilized.




NewBase 12 November - 2015 Khaled Al Awadi

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

US oil prices struggle to break away from 2-month low Reuters + NewBase

U.S. crude oil prices held near more than two-month lows in early Thursday trading, after a sharp slide on concerns the market will take much longer than many anticipated to rebalance as supplies far outstrip demand.

Benchmark U.S. crude futures were at $43.15 a barrel at 0033 GMT, up 22 cents on Wednesday when prices tumbled 3 percent on the back of high production, rising U.S. stocks and an economic slowdown in Asia.

"Rising U.S. inventories continue to remain a major theme driving crude oil prices ... Iraq is also increasing pressure on U.S. shale producers. Iraq has loaded around 10 tankers in recent weeks to deliver crude to U.S. ports in November," ANZ bank said on Thursday. In Asia, sentiment was hit by a growing sense that the region's two biggest economies were slowing sharply after China's factory output reportedly slowed further and fears emerged that Japan's economy may have fallen into recession added to demand woes.

At the same time, emerging markets across the world are struggling with a soaring debt mountain that threatens growth.

Oil price special

coverage




Russia's Oil Rivalry With Saudis Masks the Bigger Iranian Threat Bloomberg - Dina Khrennikova

Competition is growing in Russia’s biggest oil market. While Saudi Arabia’s encroachment in Europe is getting all the attention, the biggest threat comes from another part of the Middle East -- Iran.

The world’s largest oil exporter has started shipping crude to traditional Russian markets like Poland and Sweden, but Saudi supplies to Europe won’t increase by enough to reduce prices, said Texas-based consultant Stratfor. In contrast, a surge in Iranian exports after the lifting of sanctions could erode the value of Russian shipments to the region as soon as next year, according to KBC Advanced Technologies.

Tougher competition in Europe, the destination for almost 70 percent of Russia’s oil exports, comes as the country is already battling recession. Oil and gas sales account for about half of government revenues and the commodity-price slump has amplified the economic blow from international sanctions over Ukraine. An increase in Iranian exports following a nuclear deal with world powers could make matters worse.

“Eastern European refineries are geared to process Russian crude, the Urals blend, and the closest sort to it would be Iranian oil,” Michael Nayebi-Oskoui, senior energy analyst for Middle East and South Asia at Stratfor, said by phone. For Saudi shipments to push prices down “they would have to be significantly rerouted from Asia towards Europe, and we don’t see that happening,” he said.

Before Sanctions

Iranian shipments to Europe came to around 600,000 barrels a day, or 17 percent of its production, before sanctions blocked imports in 2012. Once restrictions are lifted, Oil Minister Bijan Namdar Zanganeh has said the National Iranian Oil Co.’s priority will be to regain its “lost share” of the market, regardless of the impact on crude prices.




“Iran is going to be looking at marketing fairly aggressively”, David Fyfe, head of market research and analysis at oil trader Gunvor Group Ltd., said by phone from Geneva. “They want to reclaim the foothold they previously had.”

Former customers in southern Europe already have shown an interest in resuming purchases of Iranian oil. Hellenic Petroleum SA is “in the process of initiating a dialogue” with Iran’s national oil company, as are “most western companies,” Vasilis Tsaitas, a company spokesman, said by e-mail. Hellenic operates three of the five refineries in Greece with total capacity of 341,000 barrels a day, according to its website.

Iranian Alternative

“Iranian crudes will definitively be again another alternative to consider” if sanctions are lifted, Ignacio Rodriguez-Solano, a spokesman for Compania Espanola de Petroleos SAU, said by e-mail. The company runs three Spanish refineries with a total capacity of around 520,000 barrels a day.

Shipments from Iran used to account for as much as 30 percent of Hellenic’s crude needs and as much as 15 percent at CEPSA and were partly replaced by Russian exports after sanctions were imposed, according to the companies.

The restoration of Iran’s supplies to Europe would pressure the price of Urals crude, Russia’s main export grade, said Ehsan Ul-Haq, a senior analyst at consultant KBC. In the Mediterranean, the discount of Urals to regional benchmark Dated Brent could drop to $1.50 a barrel next year from an average of $0.80 so far in 2015, costing Russia about $420,000 a day in lost earnings, he said.

Brent traded at $47.44 a barrel in London Tuesday after a decline of almost 60 percent since June 2014.

Wider Impact

While the loss of earnings in southern Europe would reach only around $153 million, or about 0.4 percent of Russia’s projected oil and gas export revenues for the year, the price impact could eventually spread to other markets including northwest Europe, meaning final losses “could be much more,” Ul-Haq said.

Following Saudi Arabia’s entry into and Poland, Igor Sechin, chief executive officer of Russia’s largest oil producer Rosneft OAO, accused it at a conference in Moscow last month of “actively dumping” crude in traditional Russian markets. While the Middle East’s largest producer may be preparing for greater competition in Europe, it shows few signs of planning a major expansion.

Shipments of the kingdom’s medium, light and extra-light crude grades to Europe totaled 780,000 barrels a day in July, little changed from the second-quarter average, according to data from the International Energy Agency. Russia shipped more than twice as much Urals to the region that month, the data show.

Saudi Arabia’s interest in expanding in Europe will probably remain limited because Asia still offers better prices and easier shipping, said Ul-Haq.

Iran’s plan to increase production to the pre-sanctions levels means “it will have to seek additional markets, including those traditionally supplied by Russia,” Mehdi Varzi, a former Iranian diplomat and director of Varzi Energy Ltd. consultancy, said by e-mail.




NewBase Special Coverage

News Agencies News Release 12 Nov.. 2015

Back to the 1970s: four charts that showing where the oil market is heading

From over-reliance on a fragile Middle East, to the death of coal, here's what's happening in the world's energy market, according to the International Energy Agency

Opec exporters will earn on average $550bn per year up to 2020 By Telegraph uk - Mehreen Khan

1- Lurching back to the 1970s

A key theme in this year's World Energy Outlook from the IEA, was the threat of a lurch back to the 1970s, when a handful of major oil producers monopolised the energy market. Should the environment of low oil prices persist, the IEA pointed out that it will be the traditional low-cost producers in the Middle East who stand to benefit. When demand for energy eventually begins to rise over the coming years, the likes of Opec - the cartel that has long dominated the market - will "push out higher-cost sources of supply", said the report.




Back in the 1970s, Opec accounted for more than 50pc of all new oil produced. With prices having fallen so dramatically, we could now return to the same situation between 2020-2025, as shown by the yellow bar in the chart below.

If low oil prices are here to stay, it is Opec who will win out Photo: IEA

But this "fast-growing rise in dependence on supply from the Middle East may raise concerns over oil security", noted the IEA. The fragility of the region - which is grappling with the threat of Islamic State, a Saudi war in Jordan and fleeing refugees - means policymakers should be vigilant about the geostrategic risk of being overly reliant on that area.

In particular, the IEA highlights Iraq as a being plagued by persistent security concerns and fragile national institutions, crimping future production.

2- Self-defeating Opec will have to relent

Since November last year, Opec - led by its de facto leader Saudi Arabia - decided to maintain production in the face of low demand, in a smash-and-grab attempt to steal market share from its rivals.

The price of Brent crude has since fallen by more than 40pc over the past year. But the intransigent Saudis have vowed to stick to their guns in the face of pressure from non-Opec producers to adjust to the new oil price world.

However, it is a tactic which will ultimately prove self-defeating, the IEA warned.

"Opec countries lose more from lower prices than they gain from higher volumes over the longer term," noted the report.

The IEA calculated that in its "Low Oil Price Scenario", Opec exporters will earn on average $550bn per year up to 2020. This compares with $660bn should oil prices rebound to around $80-a-barrel under its most optimistic forecast for 2020.




The difference between a low and high oil price world . By comparison, the 12 Opec members earned $1 trillion on average during the oil boom years of 2010-2014. It is this fiscal crunch that makes the IEA pretty bullish on prices staging a comeback.

Permanently depressed oil prices rely "on the active consent of the countries that are worst affected by the outcome", the IEA said. The assumed Opec strategy of pursuing market share is effective, but ultimately also costly to the producers themselves.

This discussion is set to come to the fore when Opec meets for its latest annual meeting next month.

3- The death of coal

Coal is set to be the biggest loser in a world of low energy prices, having held the title of the world's superstar commodity over the past decade, according to the IEA's forecasts.

China's marked slowdown in industry heavy, export-led growth has had a seismic impact on global coal demand, which peaked among the developing world economies around 2007.




Coal prices have fallen to an eight-year low, burning mining giants such as Glencore in the process. The IEA now predicts the coal industry could be heading for the "doldrums", should a combination of slower Chinese demand, wavering appetite in India and climate and pollution policies create a perfect storm.

"Chinese demand could go into decline instead of levelling off, or an Indian push for self-sufficiency could back out coal imports", the IEA warned. "Any of these has the potential to leave the world coal market in the doldrums for a long time."

4- India will be guzzling up the world's energy

India's energy consumption is expected to double by 2040, and will overtake China as the largest source of consumption growth in the world.

The IEA expects the Indian economy will grow to more than five times its current size over the next quarter of a decade at an average rate of 6.5pc. This will propel it to become the world leader in global demand for oil, gas, coal, renewables and nuclear.

By 2040, India’s net import needs will "easily exceed those of the European Union", noted the report.




Major Oil Companies Have Half-Trillion $ to Fund Takeovers Bloomberg - Joe Carroll

The world’s six largest publicly traded oil producers have more than a half-trillion dollars in stock and cash to snap up rival explorers.

Exxon Mobil Corp. tops the list with a total of $320 billion for potential acquisitions. Chevron is next with $65 billion in cash and its own shares tucked away, followed by BP Plc with $53 billion, according to data from corporate filings compiled by Bloomberg.

Merger speculation was running high after Anadarko Petroleum Corp. said Wednesday it withdrew an offer to buy Apache Corp. for an undisclosed amount. Apache rebuffed the unsolicited offer and wouldn’t provide access to internal financial data, Anadarko said. Both companies are now takeover targets, John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by phone.

Royal Dutch Shell Plc has $32.4 billion available, almost all of it in cash. That said, The Hague-based company is unlikely to go hunting for large prey given plans announced in April to take over BG Group Plc for $69 billion in cash and stock.

At the bottom of the pack are ConocoPhillips with $31.5 billion and Total SA with $30.5 billion. More than 90 percent of ConocoPhillips’ stockpile is in the form of shares held in its treasury. Total’s arsenal is 85 percent cash.

Chevron spokesman Kurt Glaubitz declined to comment on the company’s mergers and acquisitions strategy. Shell spokeswoman Natalie Mazey also declined to comment. Voice messages left for Exxon, BP, ConocoPhillips and Total weren’t immediately returned.

Even with its lowest cash balance in at least a decade, Exxon still wields a mighty financial stick. The Irving, Texas-based company has $316 billion of its own shares stockpiled in the company treasury that it could use for an all-stock takeover. The world’s biggest oil company by market value made its two largest acquisitions of the last 20 years with stock -- the $88 billion Mobil deal in 1999 and the $35 billion XTO transaction in 2010.




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

Your partner in Energy Services

NewBase energy news is produced daily (Sunday to Thursday) and

sponsored by Hawk Energy Service – Dubai, UAE.

For additional free subscription emails please contact Hawk Energy

Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010

Mobile: +97150-4822502 [email protected] [email protected]

Khaled Al Awadi is a UAE National with a total of 25 years of experience in the Oil & Gas sector. Currently working as Technical 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 Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great experiences in the designing & constructing of gas pipelines, gas metering &

regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation, operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.

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

NewBase 12 November 2015 K. Al Awadi




New base 727 special 12 november 2015

Business