New base special 21 january 2014 khaled al awadi

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NewBase 21 January 2014 Khaled Al Awadi

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Mohamed bin Zayed opens World Future Energy Summit WAM ABU DHABI, 20th January, 2014 (WAM)

His Highness General Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy

Supreme Commander of the U.A.E. Armed Forces, attended the official opening ceremony of the 7th

edition of the World Future Energy Summit (WFES) being held at the Abu Dhabi National Exhibitions

Centre (ADNEC), as part of Abu Dhabi Sustainability Week.

The summit, held under the theme: "Powering the Future of Energy Innovation", saw the participation of a

number of heads of states and governments, representatives of international organisations, international

companies and experts.

Since its inception in 2008, WFES has grown to become the leading discussion platform for renewable

energy, clean technology and sustainability, and it is now considered the pre-eminent international event

for government and industry decision makers to find viable, sustainable solutions to the world’s growing

energy challenges.

Prior to the inauguration, Shaikh Mohammad met heads of state participating in the summit and lauded

their presence and valuable contribution to the event where participants will exchange ideas and views

about the most important steps to be taken in order to ensure the sustainability of energy for current and

future generations.

He said that the UAE welcomes the leaders and heads of state and special state guest experts from Africa

who came to Abu Dhabi to discuss ways to ensure security of energy and water and find optimal ways to

enable future generations to live in sustainable conditions. Shaikh Mohammad said that Africa has great

potential that needs the implementation of sustainable development to preserve biological resources not

only for Africans but also for the whole world.




“The UAE, under the leadership of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, pays great

attention to boosting efforts aiming at ensuring safe, clean and sustainable energy as a fundamental pillar

of stability and growth in the world,” Shaikh Mohammad said.

He added: “Energy is the backbone of all development activities as its importance increases in dry areas

that are in need of water and we cannot talk about sustainable development without ensuring the security

of essential resources, such as water and energy.”

Shaikh Mohammad underlined the immense efforts by the UAE in future planning and drawing up policies

aiming at securing these vital resources, indicating that the UAE would continue to pursue its approach to

unify global efforts in order to address and deal with these challenges.

He commended projects and initiatives undertaken by Masdar, which has succeeded in establishing the

UAE’s position on the world’s renewable energy map, and also referred to its ongoing efforts in the areas

of sustainable development and renewable energy. Shaikh Mohammad stressed that work would continue

to ensure energy security by diversifying its sources and supporting the growth of renewable energy

technology, which offers promising prospects.

Hologram prince hails new money for alternative energy http://www.theguardian.com/environment/2008/jan/21/energy.renewableenergy

Prince Charles upstaged the world's largest oil companies, politicians and presidents today by appearing out of the ether at an alternative energy summit, saying a few words and then vanishing back into thin air.

A holographic projection of Prince Charles giving an address is presented at the opening ceremony of the World

Future Energy Summit in Abu Dhabi, United Arab Emirates. Photograph: Kamran Jebreili/AP




The full-size, walking, talking, fiddling hologram of the prince appeared on the world stage to gasps from the 2,500 delegates to the World Future Energy summit. Most had flown thousands of miles to Abu Dhabi to discuss renewable energy and climate change and how to save emissions.

But Prince Charles also surprised many people by referring to a common "creator" figure. "Scientists are now saying that the problem of climate change is now so grave and so urgent that we have less than 10 years to slow, stop and reverse greenhouse gas emissions.

"Common actions are needed in every country to protect the common inheritance that has been given to us by our creator," said the prince. He welcomed an announcement by Abu Dhabi of an investment of $15bn of new money immediately, and far more later, into alternative energy projects including wind, solar, and carbon capture technologies.

The money will be channelled through the new Masdar initiative, which expects to raise more than $200bn for renewables in the next decade. Sheikh Mohamed bin Zayed Al Nahyan, the crown prince of Abu Dhabi, said the small emirate that controls 10% of the world's oil reserves intended to become the world's leading funder and researcher of renewable energy.

"The evidence is now overwhelming that our responsibility must be balanced by a duty to find mew sources of energy and protect the world," said the prince. In a series of announcements, he said that Abu Dhabi would join the Massachusetts Institute of Technology in the US to set up an alternative energy university and would build the world's largest solar power station.

At 500MW, this could be as large as many nuclear and coal-fired power stations and provide 5-10% of the country's electricity. US secretary of energy, Samuel Bodman, said that more than $22tn of new investment was needed to meet extra global demand for energy within 22 years. "We cannot depend on hydro-carbons [like oil and gas]. The world needs safe, reliable, clean affordable energy in considerably greater numbers than it now has.

"We require massive global investments. Moving towards alternative energy should not be viewed as a threat to any oil producing nation," he said. But he acknowledged that the recent US switch to homegrown biofuels, made mostly from maize, was leading to the escalation of food prices around the world. "It is a matter of concern, but it is not devastating," he said.

Jonathon Porritt, the UK government's adviser on sustainable development, admonished the UN and energy companies for insisting that oil and gas could be part of the energy mix for a century. "Renewables are the only solution. The International Energy Agency's projections [that oil and gas can be used for a century] are biased and inadequate. "Governments and companies have all signed up to fight climate change but the world is asking where are the actions to match the words? The challenge we face demands the complete transformation of economies. People do not understand the scale and speed of what is going to have to happen," he said.

"There is a growing momentum for change. Renewables are growing very fast. Wind grew 30% last year, biofuel 20% and photovoltaics by 40%. More than $100bn was invested in sustainable energy last year", said Vivienne Cox, the chief executive of BP Alternative energy. "Now is the time the time to build a sustainable energy industry alongside traditional oil and gas," she said. Conventional supplies of energy cannot keep up with rapidly increasing global demand for oil and gas, said Graeme Sweeney of Shell International. He called on governments and companies to make renewables cheap and to reduce energy demand urgently. "We need twice as much energy within 50 years but …. we need to reduce carbon intensity by 75%. We urgently need new cheap clean energy sources."




$50bn solar bill for Middle East April Yee , http://www.thenational.ae/busines

The Middle East could spend as much as US$50 billion in the next seven years on solar power. The prediction from

the Dubai-based Middle East Solar Industry Association (Mesia) emerged as hundreds of delegates

converged on the World Future Energy Summit that began in Abu Dhabi yesterday.

The solar body estimates the region will install 12,000 to 15,000 megawatts of solar by 2020, plus an

additional 22,000 to 25,000 gigawatts of other renewables such as wind and hydropower. Today the

region has just 271MW of installed solar power, including Abu Dhabi’s 100MW Shams 1 solar array in the

Western Region.

The study, which spans 14 countries, was published jointly by Mesia and the market researcher Meed

Insight. It covers renewable energy targets ranging from Dubai’s modest 1 per cent to Morocco’s

ambitious 42 per cent by 2020.

The region is at a turning point in executing its solar plans, said industry executives, with projects being

awarded recently in Algeria, tenders announced in Jordan and bids expected soon in Saudi Arabia. Five

years ago, only about one in two countries in the region had renewable energy targets.

“We’re seeing a move from the announcements to the mechanisms,” said Erik Voldner, the executive

director of operations at Enviromena, an Abu Dhabi-based solar installation company. “A lack of visibility

doesn’t mean there’s no movement on the programme.”

The study relies on an estimate that each megawatt of concentrated solar power (CSP), which relies on

mirrors to produce heat that can then be used to generate electricity, costs about US$7 million and each

megawatt of photovoltaic, which uses cells to directly produce electricity, will cost $2m.

Industry insiders expect the coming years to present an opportunity for CSP producers to narrow the price

gap as a 25MW target in Saudi Arabia incentivises the growth of the industry. In the past five years,

subsidy-driven demand in Europe and the rapid expansion of China’s solar panel production sector has

driven down PV prices by 80 per cent. But the decline in PV prices is slowing, with costs this year expected

to fall just 6 per cent.

The expected growth also presents fresh opportunities for research and development to adapt panels and

mirrors to the region’s environmental conditions. Abu Dhabi would need 1.5 to 2GW of renewables to

meet its 7 per cent target, said Steve Griffiths,the executive director of institute initiatives at the Masdar

Institute. “If you look at anything that’s done in other countries, you don’t have this dust, you don’t have

this humidity,” said Mr Griffiths.




UAE’s Shah gas project completion still a year away Dania Saadi , http://www.thenational.ae/business

But two units of Abu Dhabi National Oil Company (Adnoc) are on target to boost output as part of plans to

reach an oil production capacity of 3.5 million barrels per day (bpd) by 2017.

“Shah, it will be delivered beginning of 2015. There was some delay but normal project management

schedule is not guaranteed to go on target 100 percent ,”said Ali Al Jarwan, the chief executive of Abu

Dhabi Marine Operating Company, better known as Adma-Opco, which produces offshore oil and gas.

He was speaking at the World Future Energy Summit in Abu Dhabi. The joint venture between California’s

Occidental and Adnoc will process 1 billion cubic feet a day of sour gas into 500 million cubic feet of gas

after stripping it from sulphur. Occidental holds a 40 per cent stake in a 30-year contract to develop the

technologically challenging field.

Willie Chiang, the executive vice president of operations at Occidental Petroleum, said in November the

project was 90 per cent complete and was expected to start by the end of this year. The Government is

taking on expensive gas projects to feed rising power demand and industries as part of the efforts to free

up oil for export and build a gas-fed manufacturing base that diversifies income away from oil. Gas is also

re-injected into oilfields to maintain oil well pressure.

In 2012, the Government awarded Royal Dutch Shell a 40 per cent stake in the “ultra-sour” Bab gas project

that is forecast to produce 520 million cubic feet per day of network gas by 2020, after impurities have

been stripped. Separately, Adma-Opco is on target to boost oil output from the current 620,000 bpd to

750,000-800,000 bpd by 2017 and 1 million bpd by 2020, Mr Al Jarwan said.

“The majority [of the increment] will happen by 2017. By 2017, 750,000 to 800,000 is the target,’’ he said,

adding the project will cost “billions”. As part of boosting oil output, Adma-Opco is doubling its rig count to

drill more wells and is using enhanced oil recovery techniques.

“We are increasing our rig fleet altogether in Adnoc from currently 45 to 88 rigs to really follow the

projects. In addition, Adnoc and its partners at the Zakum Development Company [Zadco] is on target to

boost production to 750,000 bpd by 2017 and 1 million bpd by 2024,” said Ali Hassan Al Marzooqi, Zadco’s

senior vice president. He declined to say what current production was, but in November he said at at the

Adipec oil conference that current production was 585,000 bpd.

“We are targeting 750,000 [bpd] by 2017 and 1 million by 2024. The field itself has higher potential than

even 1 million,’’ said Mr Al Marzooqi. The country’s largest field has oil reserves estimated at 50 billion

barrels. Adnoc has a 60 per cent stake in Zadco, and the rest is held by ExxonMobil and Japan Oil

Development, two partners that will contribute to the investments in the Upper Zakum field to reach the

750,000 bpd target by 2017. The partners have yet to sign up to plans to boost production to 1 million bpd

by 2024, a deal that will have to be agreed by the Supreme Petroleum Council of Abu Dhabi.

Shah Gas Development Project - Package 2 & 3 Civil and Building




Abu Dhabi's TAQA to invest $1.2bn in Kurdistan oil field By Reuters

Abu Dhabi National Energy Company (Taqa) plans to invest about $1.2 billion developing the Atrush oil and gas block in the autonomous Kurdistan region, the head of Taqa's Iraq operations said on Monday.

Taqa, which is majority owned by the government of Abu Dhabi, won approval from the Kurdistan Regional Government (KRG) to develop the block in late 2013. It expects to invest more than $300 million in the first phase of the project, with first oil from the 30,000 barrel per day (bpd) first phase expected in early 2015.

Subject to KRG approval and further field appraisals, a second phase could add 30,000 bpd of oil production, along with some associated gas for the domestic market. "Iraq is very much core to Taqa," Leo Koot told Reuters in an interview on the sidelines of a conference in Abu Dhabi. "The investment in the next three phases will be similar to the first phase and production should be around 100,000 to 120,000 bpd of oil in four years," he said.

Deals between foreign investors and the KRG to develop oilfields have angered the federal government in Baghdad, which rejects them as illegal. Abu Dhabi's former state utility is expanding a power plant in Kurdistan, which should be completed in mid-2015, but it also hopes to build gas-fired power plants in southern Iraq to help Baghdad to overcome power shortages. "We've had good discussions with the Iraqi government," Koot said, declining to go into details about the plant talks.

The Atrush 1 exploration well in the Atrush Block and

Gas Exploration Area




Oman plans to award two oil blocks for exploration this year BYA E JAMES HTTP://WWW.TIMESOFOMAN.COM/NEWS/ARTICLE-28505.ASPX

Oman government plans to award two oil blocks to international firms for exploration in Southern Oman this year,

which is part of five blocks tendered last year. The Ministry of Oil and Gas is on the verge of finalising negotiations

with foreign companies, said a senior official of the Ministry of Oil and Gas, on the sidelines of the International

Unconventional Gas Conference and Exhibition here yesterday.

"We continuously offer open blocks to the market," said Salim bin

Nasser Al Aufi, Undersecretary at the Ministry of Oil and Gas. "We

have already finished negotiations for five oil blocks," added Dr

Saleh A Al Anboori, Director General of Management of Petroleum

Investment at the Ministry of Oil and Gas.

Oman government last month signed one each production sharing

agreement with Total Exploration and Production Oman

Petroleum B V and Petrogas Kahil for developing an offshore oil

block in northern coast and an onshore block in Al Wusta region,

respectively. The first agreement with Total was for developing offshore block 41 spread in a large 23,850 square

kilometre area off northern coast, while pact with Petrogas was for onshore block 55, spread in an area of 7,564

square kilometres.

As many as twenty-two multinational firms are currently

exploring for — and in some cases producing – oil in almost 25

concession blocks in the Sultanate under production sharing

agreements. Presently, multinational oil companies contribute

30 per cent of total crude production, while PDO constitutes

the remaining 70 per cent oil output. As huge investment is

required for bringing oil above the ground in view of the

peculiar nature of reservoirs in Oman, the government has

been encouraging multinational firms to undertake exploration

on production sharing basis.

Meanwhile, David Dalton, Middle East Regional President of

BP, said that the British oil company has already started

procurement for developing the Khazzan tight gas field in

north-central Oman with an envisaged investment of $16

billion. Oman government and the British company signed a

gas sales and production sharing agreement last month.

Well drilling programme

Dalton said that the full-field well drilling programme has

already been started. "We have one rig operating in the area

now and we are bringing two more rigs. As and when they are

operational, BP will be adding more wells," said Dalton, adding; "We hope to have around 50 wells completed by the

time we commission the project in 2017." The full field development will involve a drilling programme of around 300

wells over 15 years to deliver plateau production of one billion cubic feet of gas per day and 25,000 barrels per day of

gas condensate.

BP is signing agreements with key contractors for ramping up field development programme over the next few

months. BP has 60 per cent stake in block 61 and Oman Oil holds the rest 40 per cent.




Abu Dhabi Government Extends Inpex Upper Zakum Concession by 15 Years http://www.rigzone.com/news/oil_gas/a

Japan's Inpex Corporation (Inpex) announced Tuesday that the Government of Abu Dhabi has decided on

the extension of the Concession for the Upper Zakum Oil Field, offshore Abu Dhabi, United Arab Emirates (UAE).

The Concession has now been extended to Dec. 31, 2041 by adding more than 15 years to the previous

term. The Upper Zakum is being jointly developed by Abu Dhabi National Oil Company (ADNOC), Exxon

Mobil (EM) and an Inpex subsidiary Japan Oil Development Co., Ltd. (JODCO). In addition, the fiscal terms

and conditions on the Concession for the Upper Zakum Oil Field have been revised. The Upper Zakum Oil

Field, one of the largest oil fields in the world, is located approximately 50 miles (80 kilometers) offshore,

northwest of Abu Dhabi City and has an area of 444 square miles (1,150 square kilometers).

ADNOC and JODCO jointly started the development work in the Field in 1978 with the production started

in 1982 (at that time the interest ownership was: ADNOC 88 percent, JODCO 12 percent). In March 2006,

ADNOC transferred a part of its interest to EM: the current interest ownership is: ADNOC 60 percent, EM

28 percent, JODCO 12 percent). The production capacity has continually been increased and has now

become one of the core oil fields in Abu Dhabi.

Currently, the development work is carried out using the artificial islands whilst the production capacity is

targeted at 750,000 barrels per day. Furthermore, ADNOC, EM and JODCO are going to conduct a study to

raise the production capacity to 1 million barrels per day. Inpex believes that JODCO’s business history in

Abu Dhabi and its technical contribution fully aligned with ADNOC and EM is one of the major reasons for

awarding the decision. INPEX also recognizes that the Japanese government always stood by the efforts of

JODCO and Inpex.

The extension of the Concession for the Upper Zakum Oil Field should contribute to the long term stable

supply of energy to Japan and is one of the goals in our Medium- to Long term Vision. During the past 40

years, JODCO has assiduously worked in the oil development business in Abu Dhabi, and is committed to

further strengthening its business activities in Abu Dhabi as well as contributing to deepening the already

excellent bilateral relationship between Abu Dhabi and Japan for many more years to come.




QP targets $7bn oil, gas spend http://www.upstreamonline.com/live/americas/article1349607.ece

State-run Qatar Petroleum (QP) plans to spend around $7 billion over the next seven years to boost crude

oil and gas condensate production from its Bul Hanine offshore field, according to a report.

The field off Qatar's east coast

produces around 40,000

barrels per day of crude oil and

QP hopes to more than double

output to 90,000 bpd by 2020,

two sources told Reuters. The

volume of condensate, a light

oil, and associated gas that will

be produced is unclear, but the

high investment cost should

easily be recovered over time,

they said according to the

news wire.

While the cost of boosting

crude production and

capturing the condensate is

expected to be around $7

billion, the total cost of the

wider project, including

refinery expansion work, could

reach $12 billion, three sources said. QP's communications department did not respond to a request for

comment from the news wire.

Over the past few years QP had been receiving technical advice from French energy firm Total on how to

get more out of the ageing Bul Hanine field, which began production in 1972. "Total has been undergoing

a feasibility study on the field and that should be finalised in the coming month," one source familiar with

the matter said.

QP is now ready to move forward with the project and may invite several foreign companies to complete

different phases. As part of the project, a QP-owned gas processing plant at Mesaieed will be expanded to

help collect the condensate, which can be used to make jet and vehicle fuels.The dry gas will then be

pumped back under the Gulf to boost field recovery rates.

"The natural gas and condensate will be separated at the facility, then the gas will be reinjected into

offshore fields to maintain pressure and the condensate will be sent to the Doha refinery," one source

said. It is unclear what will be the capacity of the separation facility, but the sources said it would be the

largest of its kind in the world.




Saudi Aramco cuts Feb crude supply due to field maintenance -sources (Reuters) - KHOBAR, Saudi Arabia/SINGAPORE

Saudi state oil company Saudi Aramco has informed at least two term buyers that it will supply less Arab Extra Light crude in February due to maintenance at one of its biggest oilfields, industry sources said on Monday.

The world's top oil exporting nation and OPEC producer will carry out maintenance at the Shaybah oilfield in February that could last up to two months, two sources with knowledge of the matter said. A company spokesman said he could not immediately comment. Shaybah has a capacity of 750,000 barrels per day (bpd), expected to rise to 1 million bpd by end-2016 or early 2017.

The reduction in Arab Extra Light supply has helped bolster premiums for March-loading light grades from other Middle East producers and Russia. The value of competing Murban crude from Abu Dhabi rose to a premium of more than 10 cents a barrel to its official selling price (OSP) late last week, up from earlier trades at about 5 cents, trade sources said.

The premium on Russian Sokol held firm at just above $9 a barrel to Dubai quotes, while the premium for Russian Vityaz was up nearly $1 for cargoes loading in March and April from February.

Shaybah from an apparent height of about 2 Miles




Transforming Oman’s economy with solar powered oil production By Rod MacGregor Oman Observer .com

Using solar power to support oil production will contribute to Oman’s Vision 20-20 plans for economic

diversification. Using solar at the oilfield can divert natural gas from oil production to private industry and

establish a new high-technology export industry within the Sultanate. Oman is widely recognised as the

technology leader in Enhanced Oil Recovery (EOR) within the region. Since 2007, Oman has steadily

increased its oil production by injecting high-pressure steam into oil-bearing formations. The steam is

produced by burning large amounts of natural gas and then pumped into the reservoir to heat the oil making

it easier to extract. Now, the Sultanate is poised to take technology to the next level by generating the steam

required for oil production using solar power instead of by burning natural gas.

A new report published this week by Ernst & Young (EY) describes how wide scale adoption of solar

enhanced oil recovery can have a transformative effect on the Oman economy. The report concluded that

full-scale deployment by the end of 2023 could create up to 212,400 permanent jobs, release more than half

a billion cubic feet of gas per day, and contribute more than $12 billion to Omani GDP over the next

decade. According to the National Centre for Information and Statistics, almost one quarter of Oman’s gas

is used to support oil production, and this volume is growing rapidly. EY estimate that if solar power were

to replace 80 per cent of the gas used in oil production, then up to half a billion cubic feet of gas per day

could be diverted to the local economy, creating 51,600 new jobs in the Sultanate.

The large amount of gas diverted from oil production can be used for higher value applications such as

export as LNG, power generation, and feedstock for new industries ranging from petrochemicals to building

materials. If more gas were available then more new industries would be created. Each new factory would

have its own direct employees and its own supply chain, which would in turn generate employment and

increased activity diversifying the local economy. Using solar power to generate steam for enhanced oil

recovery is quite different from using solar power to generating electricity. In a solar enhanced oil recovery

system there are no solar panels. Instead, large mirrors focus sunlight directly onto pipes containing water.




The sunlight heats the water to produce the same type of steam produced from burning natural gas. This

direct conversion of sunlight into steam is much more efficient than indirectly using solar panels to create

electricity that can then be used to boil water. To replace even a modest percentage of the gas used in oil

production, Oman will become a very large consumer of solar steam generators, creating ideal conditions

for the establishment of a local solar manufacturing industry. EY estimate that localisation of the solar

supply chain to support full-scale deployment could create as many as 160,700 permanent jobs in Oman,

and an additional 90,000 jobs for project construction.

In addition, solar enhanced oil recovery systems are made of raw materials readily available within the

Sultanate, including aluminium sheets and extrusions, and galvanised steel posts and trusses. This allows

for almost 80 per cent of the supply chain to be sourced locally within the Sultanate. As oilfields within the

region age, they too will require enhanced oil recovery techniques to support production. Kuwait, Saudi

Arabia and Bahrain are all following in Oman’s footsteps and have established pilot projects to inject steam

into their oil reservoirs to boost production. Burning natural gas for oil production is very wasteful,

especially in these countries where gas is valuable and scarce. Solar powered oil production offers a

compelling economic solution to any country producing heavy oil that has limited natural gas resources but

enjoys abundant sunshine.

These countries are potential customers of Oman’s solar industry, creating the opportunity for Oman to

become a solar manufacturing hub for the entire region. Petroleum Development Oman (PDO) has long

recognised the potential for solar power, and was the first producer in the region to implement solar

enhanced oil recovery into their operations. It established a 7MWt pilot project at its Amal oilfield with

GlassPoint Solar. The project produced its first steam on-time and on-budget on December 12, 2012 and

has been operating successfully since that date. During 2014, PDO will have recorded enough data on the

performance of the GlassPoint system in real-world conditions to determine whether to expand the

technology within Oman. By deciding to invest in solar enhanced oil recovery, Oman has the opportunity to

build a world-class solar power industry alongside its world-class oil and gas industry.

Rod MacGregor, President & Chief Executive Officer - GlassPoint

Rod is a global chief executive officer and serial entrepreneur with twenty years of experience operating companies in China, Europe and the USA. Leading venture capitalists and corporate investors including AT&T, Intel, DaimlerChrysler and Volkswagen have shared his vision and invested over $100M in his companies. His first company, Insignia Solutions Ltd., received the Queen of England’s award for technical achievement, the Queen’s award for export achievement, and subsequently went public on NASDAQ.




Shell exits Wheatstone project LONDON, Jan 20 (Reuters) –

Oil major Royal Dutch Shell said on Monday it had agreed to sell small stakes in a liquefied natural gas project and

related joint venture in Australia for $1.14 billion to Kuwait's Foreign Petroleum Exploration Company.

"Shell (LSE: RDSB.L - news) will remain a major player in Australia's energy industry. However, we are refocusing our investment to where we can add the most value with Shell's capital and technology," Shell's chief executive Ben van Beurden said in a statement.

Shell said it was divesting an 8 percent stake in the Wheatstone-Iago joint venture and a 6.4 percent interest in the Wheatstone liquefied natural gas project in Western Australia.

Wheatstone LNG is a liquefied natural gas plant under construction in the Ashburton North Strategic Industrial Area, which is located 12 kilometres (7.5 mi) west of Onslow, Western Australia. The project is being developed and will be operated by Chevron Australia Pty. Ltd.

The project is expected to cost A$29 billion (US$29.7 billion). The LNG liquefaction and export plant will have an annual capacity of 15 million tonnes of LNG. In the first stage, the plant will have a gas plant, and two LNG trains with a capacity of 4.3 million tonnes per year each. It will be supplied from the Wheatstone, Iago, Julimar and Brunello offshore gas fields.

Front-end engineering and design works of the project are being performed by three companies. Bechtel Oil & Gas Chemicals Inc. is undertaking the design of the onshore gas plant. Intecsea Pty. Ltd., a subsidiary of The WorleyParsons Group, is designing the subsea infrastructure and trunkline. And Technip Pty. Ltd. is designing the offshore processing platform.Geotechnical consultation for the design and construction of the LNG plant and associated infrastructure will be provided by Golder Associates. Liquefied natural gas storage and condensate tanks to be built by a joint venture between Thiess and EV LNG Australia, a subsidiary of ENTREPOSE Contracting (itself a subsidiary of VINCI) and VINCI Construction Grands Projets.

Ready-for-startup operations support services will be provided by ODL, a subsidiary of Wood Group. The operability, reliability and maintainability contract was awarded to Clough AMEC. Chevron Australia Pty. Ltd. owns 72 percent of the project. Royal Dutch Shell owns 6.4 percent of the project; Apache Julimar Pty Ltd, a subsidiary of Apache Corp., owns 13 percent, KUFPEC Australia (Julimar) Pty. Ltd., a subsidiary of the Kuwait Foreign Petroleum Exploration Co., owns 7 percent; and Kyushu Electric Power Co. owns 1.6 percent of the project.

3.1 million tonnes of LNG per year will be exported to Tokyo Electric. Korea Gas Corp. (KOGAS) will buy 1.5 million tonnes per year . Tohoku Electric and Chubu Electric will each buy 1 million tons per year. 300,000 tonnes per year will be exported to Kyushu Electric .




EnBW files complaint against order to keep power plants open

(Reuters) FRANKFURT

German utility EnBW has taken legal action against a decision by the country's energy regulator

that forces it to keep open four power generating units it intended to close.

Germany's third-biggest utility said on Monday it had filed a complaint with the Higher Regional Court in Duesseldorf against the decision by regulator Bundesnetzagentur (BnetzA). Earlier this month, the regulator rejected an application by EnBW to close down the plants, saying they were considered crucial for safe supply in the south-western region.

The four units are oil-, gas- and coal-fired at EnBW's Marbach and Walheim sites, with a capacity of 668 megawatts (MW). German utilities need approval from the regulator to shut plants and are landed with the cost of maintaining unprofitable operations when it blocks their closure.

"In a market economy, individual companies should not be forced to offer a service for free. Otherwise, our business is threatened by grave competitive disadvantages and losses, putting jobs at risk. We cannot accept this," EnBW's Chief Executive Frank Mastiaux told German newspaper Die Welt in an interview published on Monday.

Green power supply takes precedence on transmission grids in Germany. This cuts minimum running hours needed for some conventional power stations conceived to run 24 hours a day. EnBW's peers E.ON and RWE are also either shutting down or mothballing plants as a result. The regulator oversees a list of applications for closures which currently amounts to 41 power generation units .




Brent slips towards $106, Iran deal eases supply disruption fears By Manash Goswami - (Reuters)

Brent futures eased towards $106 a barrel on Tuesday as world powers and Iran took a step forward in ending a decade-long dispute over Tehran's nuclear programme, but worries of prolonged outages at other exporters supported prices.

While chances of a potential conflict diminished after Iran halted its most sensitive nuclear operations under a preliminary deal, prospects of the OPEC member pumping more supplies still remain far away. That kept investors focused on immediate supply worries stemming from unrest in Iraq and Africa.

Brent crude fell 4 cents to $106.31 a barrel by 0340 GMT, after dropping to a low of $105.81 in the previous session. U.S. oil futures slipped 48 cents to $93.89. Floor trading was shut, and there will be no settlement on the New York Mercantile Exchange due to the Martin Luther King Jr. Day U.S. holiday.

"Short-term supply related issues will continue to prop up oil prices," said Victor Shum, vice-president of energy consultancy IHS Energy Insight. "The Iran situation appears to be making progress and that is some of the geopolitical tension off, but lifting oil sanctions will be the last to happen."

The United States followed through on promised sanctions relief as part of a nuclear agreement that began taking effect on Monday, in exchange for steps that Tehran had taken. Since Iran had fulfilled its initial nuclear commitments under the deal, the United States will allow the six current customers of Iranian oil to maintain their purchases at current reduced levels for the six-month duration of an interim nuclear deal between Iran and world powers. A U.S. official said Iran was currently exporting about 60 percent less oil than it was two years ago and would be held to those reduced levels.

STEMMING LOSSES

Yet further declines in oil were capped by worries of prolonged disruptions from South Sudan and OPEC

member Libya. South Sudan's president said his soldiers had seized the regional capital Malakal back from

rebels, a report dismissed by insurgents battling the government.Libya plans to remove protesters who

have seized eastern ports vital for lucrative oil exports within the next few days, Prime Minister Ali Zeidan

said on Sunday.

Since the summer, a group of heavily-armed demonstrators has occupied three eastern oil ports which

together accounted for 600,000 barrels per day of exports, to force the Tripoli government to give it

political autonomy."While Libya seems to be making progress in raising exports, there are concerns out

there of protests returning and hurting oil output," said Shum. "You have South Sudan in conflict and

growing unrest in Iraq.

The March Brent contract looks neutral, as it is moving sideways in a rising wedge, while U.S. oil is

expected to test a support of $93.48 per barrel, with a good chance of breaking below it and falling further

to $92.65, according to Reuters technical analyst Wang Tao.




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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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