new base 803 special 08 march 2016

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.

NewBase 08 March 2016 - Issue No. 803 Edited & Produced by: Khaled Al Awadi

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

UAE-U.S. partnerships on energy & water sustainability on display during Vice President Joe Biden’s visit to Masdar City

(WAM) --- US Vice President Joseph R. Biden today visited Masdar City as part of his series of official engagements with senior UAE leaders.

The visit is the latest milestone in a bilateral relationship that has helped drive global efforts to foster the widespread adoption of renewable energy, the acceleration of clean technology innovation and research as well as the development of knowledge and human capital across a number of emerging industries.

Vice President Biden toured Masdar City in the company of Reem Ebrahim Al-Hashimi, Minister of State for International Cooperation, Dr Sultan Ahmed Al Jaber, UAE Minister of State and Chairman of Masdar, Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Dr Behjat Al Yousuf, Interim Provost of Masdar Institute of Science and Technology.




The delegation was introduced to various areas of collaboration demonstrating the critical innovative and commercial cooperation between the U.S. and the UAE on renewable energy and clean technology, which is anchored by the partnership between Massachusetts Institute of Technology and Masdar Institute. During the visit the delegation also met with U.S. companies Lockheed Martin and GE, both of which conduct important research and development in partnership with Masdar and Masdar Institute from their bases in Masdar City.

Welcoming the Vice President, Dr Sultan Al Jaber said: "Vice President Biden’s visit to the UAE is a testament to the strong bilateral ties between our two countries, one built on mutual trust, economic partnership and a vision to developing sustainable and knowledge-based economies."

Since the Obama Administration took office in 2009, Masdar has been at the forefront of the UAE’s efforts to cooperate with its U.S. counterparts in tackling energy and climate change challenges. Over the eight years of the Administration, these relationships have evolved from basic collaborations to ones of knowledge-exchange and shared innovation on issues critical to both nations.

An MoU signed in 2010 between Masdar and the U.S. Department of Energy laid the foundation for a number of joint partnerships with national laboratories in the U.S., including projects related to carbon capture, use and sequestration and renewables-powered desalination.

Meanwhile, the solar mapping work undertaken by Masdar Institute’s Research Center or Renewable Energy Mapping and Assessment (ReCREMA) supports the objectives of the Multilateral Solar and Wind Working Group of the Clean Energy Ministerial of which the U.S. and UAE are active members. ReCREMA is supporting the International Renewable Energy Agency (IRENA) in developing a publicly-accessible atlas of solar and wind resources, particularly for developing countries. IRENA Director General Adnan Amin briefed the delegation on ReCREMA’s latest research.

U.S. companies have been involved in various areas of collaborative research and technology development with Masdar, including next generation desalination technologies powered by renewables.

One of Masdar’s pilot renewable energy desalination plants in Ghantoot, Abu Dhabi, was developed in partnership with California start-up Trevi Systems and three other international clean technology companies. The technology could have a practical impact on municipalities in the state of California that are threatened by water shortages.

The US has one of the fastest growing commercial relationships with the UAE, with bilateral trade standing at over US 25 billion (AED 91.82 billion) in 2015.

Masdar is Abu Dhabi’s renewable energy company which works to advance the development, commercialization and deployment of clean energy technologies and solutions. The company serves as a link between today’s fossil fuel economy and the energy economy of the future. Wholly owned by the Mubadala Development Company PJSC, the strategic investment company of the Government of Abu Dhabi, Masdar is dedicated to the Emirates’ long-term vision for the future of energy and water.




Kuwait: Hyundai consortium wins $2.9bn Kuwait LNG project http://pmgulf.com/content/hyundai-consortium-wins-2-9bn-kuwait-lng-project-trade-arabia/

A consortium led by Korean group Hyundai Engineering has won a 3.6 trillion won ($2.93 billion)

contract from the state-owned Kuwait National Petroleum Company to build a liquefied natural gas

(LNG) import terminal at Al-Zour, 90 km south of Kuwait City, said a report.

As per the deal, the consortium, which also includes Hyundai E&C and the government-run Korea Gas Corporation, will construct a re-gasification facility, which can process three billion cu m of gas every day, and eight 225,000-cubic-meters LNG storage tanks along with docking facilities near Al-Zour area, reported the Korea Times.

Of the contract value, the Korean construction giant Hyundai Engineering & Construction (E&C) will account for 1.85 trillion won, while Hyundai Engineering and the Korea Gas takes share of 1.7 trillion won and 20 billion won, respectively, the report said citing a Hyundai E&C official.

Hyundai Motor's another affiliate Hyundai Engineering is expected to be in charge of the construction of the re-gasification facility while Hyundai E&C will build the eight tanks and docking facilities, stated the report. Trial operation and education over the facilities will be led by the Korea Gas Corp, it stated. The construction period is expected to be 58 months and is likely to be completed by 2020, said the report.




China: BAIC Said to Seek $460 Million, Plan Electric-Car Unit IPO Bloomberg News + NewBase

BAIC Group is seeking to raise about 3 billion yuan ($460 million) in a financing round for its electric-car business, with plans to sell shares in the unit on Shanghai’s exchange for emerging companies, according to people familiar with the matter.

Beijing Electric Vehicle Co., which is 60 percent controlled by BAIC, has attracted investments from technology companies including Le Holdings (Beijing) Co., said the people, who asked not to

be identified because the information is confidential. BJEV, asthe unit is called, plans to use the funds from the initial public offering to cut debt, make investments and as working capital, according to the people.

China has made electric vehicles a strategic initiative as part of its push to lead in the automotive technology, curb pollution and cut dependence on imported oil. BAIC’s financing plan follows BYD Co.’s filing last year to sell additional shares and raise

funds for its new-energy vehicle business. Global automakers also plan to cash in on the rising demand, with Tesla Motors Inc. seeking a local partner to start production in China.

A charging station for electric cars in Beijing. China has

made EVs a strategic initiative as part of its push to lead

in the automotive technology, curb pollution and cut

dependence on imported oil.




“There shouldn’t be a lack of investor appetite to back China’s electric-car industry,” said Steve Man, a Hong Kong-based analyst covering the auto industry at Bloomberg Intelligence. “China is resolute in tackling the environmental calamity that it’s facing.”

Representatives for BAIC and Le Holdings declined to comment. BAIC Motor’s shares fell 4.4 percent to HK$6.08 as of 11:52 a.m. while the benchmark Hang Seng Index slid 0.9 percent. Leshi Internet’s stock has been halted from trading since December.

BJEV has three other founding shareholders besides BAIC, all of which are owned by the Beijing government. The automaker’s electric vehicle sales may more than double to 55,000 units this

year from 20,000 last year, and reach as many as 700,000 units annually by 2020, according to Chen Ping, chief engineer of Beijing Electric Vehicle Co., a majority-owned BAIC unit.

The company is developing its first plug-in hybrid model, which runs on a rechargeable battery backed up by a small

internal combustion engine, Chen said in a January interview. It’s working with China Petroleum & Chemical Corp., also known as Sinopec, to provide battery replacement for electric vehicles at its gas stations.

Le Holdings is teaming with Aston Martin Lagonda Ltd. to help bring its electric RapidEvehicle to market by 2018, providing the powertrain and battery pack. It also backs Faraday Future, the electric-vehicle startup planning to manufacture its first car in 2017 at a $1 billion factory near Las Vegas.

Sales of new-energy vehicles, which includes plug-in hybrids, surged 3.4 times to 331,092 units in 2015, outpacing the industry growth for passenger vehicles, according to data from the China Association of Automobile Manufacturers.

Retail auto deliveries rose 6.3 percent to 3.72 million units in the first two months of this year, according to data released by the China Passenger Car Association on Tuesday.




Denmark: Hansa Receives 2 Licenses in Danish North Sea Rig Zone + NewBase

Hansa Hydrocarbons Limited announced Monday that it has provisionally been awarded licenses 7/16 and 14/16 in the Danish sector of the North Sea, as part of the Danish 7th Licensing Round. Licence 7/16 covers an area of 306.4 km2 down to a depth limit of 1700m and is situated adjacent to the German median line to the south. The licence term is six years, with a drill or drop decision at the end of the third year, and the firm work program consists of reprocessing existing 3D seismic data. Partners on the license comprise Hansa (50 percent, operator), Edison International S.p.a. (30 percent) and Nordsøfonden (20 percent).

Licence 14/16 covers an area of 284.9 km2 and is located on the northernmost margin of the Southern Permian Basin, on the western limit of the Danish offshore. The license term is six years with a decision at the end of the second year to either acquire a new 3D seismic survey or to drill an exploration well. The firm work program of this license also includes the reprocessing of existing 3D seismic data. Partners on this license will be Hansa (32 percent), Edison International S.p.a. (48 percent, operator) and Nordsøfonden (20 percent). The awards remain subject to ratification by the Danish parliament. John Martin, Hansa Hydrocarbon’s CEO, said in a company statement: “At a time of a major industry downturn, these awards represent a great opportunity for Hansa to build out its exploration portfolio with high quality, high impact acreage in a new core area. We have recognized for some time that offshore Denmark is relatively lightly explored compared to other North Sea sectors, especially given the multiple play types present and the infrequent licensing rounds. The awards are the result of some considerable effort in regional work and once again demonstrate how a small technically focused company can be successful in leveraging knowledge across borders.




US: Second-biggest U.S. shale output drop seen for April – EIA Source: Reuters

U.S. shale oil production in April is expected to chalk up the second-largest monthly decline on record, and the sixth straight monthly decrease, a U.S. government forecast released on Monday showed.

Total output is expected to fall by 106,000 barrels per day to 4.87 million bpd, according to the U.S. Energy Information Administration's (EIA) drilling productivity report. That would be the second largest monthly drop after a record 121,000 bpd-decline in January 2015, based on data dating back to 2007.

Production from the Bakken Formation in North Dakota is expected to fall 28,000 bpd, the fifth consecutive monthly drop, while output from the Eagle Ford Formation is forecast to drop 58,000 bpd, the ninth consecutive monthly slide, the EIA said. Production from the Permian Basin in West Texas is expected to fall 4,000 bpd, the first decline since June, it added.

Global oil prices have slumped more than 70 percent in the past 19 months, causing producers to hold back on capital spending and focus on drilling in more cost-effective areas. Oil production per rig rose to new records across the shale plays, jumping 6 bpd in the Bakken, 10 bpd in the Eagle Ford and 6 bpd in the Permian.

Total natural gas output is expected to decline for a fifth consecutive month in April to 46.3 billion cubic feet per day (bcfd), the lowest since July 2015, the EIA said. That would be down almost 0.5 bcfd from March, making it the biggest monthly decline since March 2013, it noted.

The biggest regional decline was expected to be in Eagle Ford, down 0.2 bcfd from March to 6.3 bcfd in April, the lowest level of output in the basin since April 2014, the EIA said. In the Marcellus Formation, the biggest U.S. shale gas field, in Pennsylvania and West Virginia, April output was expected to decline by 0.1 bcfd from March to 17.3 bcfd. That would be the second monthly decline in a row and the biggest decline since July 2013.




U.S. coal exports declined 23% in 2015, as coal imports remained steady Source: U.S. Energy Information Administration, based on U.S. Census Bureau data

The United States remains a net exporter of coal, exporting 74.0 million short tons (MMst) and importing 11 MMst in 2015. Coal exports fell for the third consecutive year in 2015, ending the year 23 MMst lower than in 2014 and more than 50 MMst less than the record volume of coal exported in 2012.

Slower growth in world coal demand, lower international coal prices, and higher coal output in other coal-exporting countries contributed to the decline in U.S. coal exports. Lower mining costs, cheaper transportation costs, and favorable exchange rates (compared to the U.S. dollar) continue to provide an advantage to producers in other major coal-exporting countries such as Australia, Indonesia, Colombia, Russia, and South Africa.

One of the only increases in U.S. coal exports in 2015 was for exports to India, which increased by almost 2 MMst, bringing its share of U.S. coal exports to 9%, up from 5% in 2014. Coal exports to the rest of Asia fell. Europe has traditionally been a leading destination for coal exports, but exports were down 14.6 MMst (28%) in 2015.

U.S. coal exports are mainly shipped from six customs districts that together accounted for 90% of U.S. exports in 2015. Norfolk, Virginia, the largest coal port, shipped 26.2 MMst of coal, accounting for 35% of total U.S. exports. Baltimore, Maryland, was the only major customs district (districts that generally export more than 1 MMst of coal annually) to increase exports in 2015, largely driven by increased exports to India.

U.S. coal imports totaled 11.3 MMst in 2015, the same as in 2014, with 85% of imports being steam coal that is primarily used to generate electricity. Although the amount of imports did not change in 2015, the source and point of entry of these imports changed from 2014.




The biggest changes in the origin of U.S. imports involved imports from Colombia and Indonesia, which increased by 8% and decreased by 42%, respectively. Colombian coal is highly competitive with domestic coal at power generators located along the Gulf of Mexico and southern Atlantic coasts. Metallurgical coal, which is used in the steelmaking process, was primarily imported from Canada.

Tampa, Florida, overtook Mobile, Alabama, to become the largest recipient of coal imports in 2015. The closure of coal-fired electricity generators in New England led to a 41% (0.5 MMst) decrease in imports into the Boston, Massachusetts, customs district. Increased Canadian imports drove the increase of imports (0.1 MMst, 55%) into the Portland, Maine, custom district. Imports into the Honolulu, Hawaii, custom district remained nearly unchanged as declines in Indonesian imports were offset by imports from Canada and Australia.

Detailed export and import data by year, country, coal type, and customs district is available through EIA's Coal Data Browser.




NewBase 08 March 2016 Khaled Al Awadi

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

Brent holds above $40 as investors call bottom on commodity rout Reuters + NewBase

Brent crude oil prices remained over $40 a barrel in early trade on Tuesday, after jumping to a 2016-high the previous session as more producers announced talks to support the market and investors opened new bets on further price rises.

International benchmark Brent crude futures managed to defend $40 per barrel in early trading on Tuesday, standing at $40.70 at 0106 GMT. On Monday, the contract had surged over 5.5 percent in intra-day trading and remains 50 percent above 2016 lows from Jan. 20.

U.S. West Texas Intermediate (WTI) crude futures also remained stable after Monday's jump, trading at $37.84 a barrel at 0108 GMT, only slightly down from their last close but over 45 percent up from their 2016 low in February.

"Sentiment continues to improve as discussion about a production freeze linger," ANZ bank said on Tuesday.

Oil markets first gained traction last Friday after Russia's energy minister said that a meeting between the OPEC group and other leading oil producers about freezing output could take place between March 20 and April.

Oil price special

coverage




INTERVIEW-Oil rout over, OPEC aims for $50 anchor, says PIRA's Ross Reuters

Major OPEC producers are privately starting to talk about a new oil price equilibrium of $50 a barrel, adding to signs that the market's long, deep rout is officially over, says one of the industry's leading prognosticators.

Gary Ross, the founder, executive chairman and chief oil soothsayer at New York-based consultancy PIRA, told clients 2-1/2 weeks ago that he reckoned the "lows are in" for crude, which was then about $30 a barrel. U.S. futures have rallied since then to close at nearly $36 on Friday, with a handful of analysts also cautiously calling a bottom.

In an interview with Reuters , Ross said oil should recover to $50 a barrel by the end of the year, potentially aided by

eventual supply cuts from leading producers among the Organization of the Petroleum Exporting Countries (OPEC).

"They want $50 oil, this is going to become the new anchor for global oil prices," said Ross, one of the industry's most respected forecasters for his bold price predictions and decades-long history of consulting with OPEC members.

"While it may not be an official target price, you'll hear them saying it. They're trying to give the market an anchor."

If Saudi Arabia and other powerful Gulf OPEC members begin invoking $50 as "fair price for producers and consumers" - a once-favored phrase that has been absent for several years - it may could signal the end of an unusual and extended period in which the group abandoned efforts to manage the market.

After years of signaling satisfaction with prices hovering at around $100 a barrel, top exporter Saudi Arabia in late 2014 led OPEC in its most dramatic policy shift in decades. No longer would the world's top oil exporter, or its OPEC allies, agree to cut their own production to support such high prices, which they feared would erode their share of the world market.

Instead, they would keep pumping and allow prices to fall. While they did not anticipate the longest and deepest oil price rout since the mid-1980s, the effort has at last begun to curb the rise of rival higher-cost producers such as U.S. shale drillers, another sign that prices may have found a bottom.

In his note to clients, Ross also pointed to the recent agreement between major OPEC members and leading non-OPEC producer Russia to "freeze" production at January levels as a factor boosting market sentiment after a brutal period when the only safe trade seemed to be sell.

The pact will do little to curb immediate oversupply, especially with Iran exports still swelling after the end of sanctions. Still, working together on "verbal intervention" was a positive start that "could lead to eventual cuts" after a period in which Saudi Arabia and Russia made little effort toward any kind of cooperation, he said.




"Russian production is going down anyway, why not agree to a freeze and then cuts?" Ross told Reuters . The $50 figure was in line with analysts' consensus for 2017 U.S. prices, according to the last Reuters poll, although much higher than the $38 a barrel median for this year.

Ross, whose forecasts are not normally made public, was among the few analysts to anticipate OPEC's decision to let prices fall in 2014.

While he was wrong-footed in the first part of last year, when crude's rebound to around $60 a barrel proved temporary, he joined others such as Goldman Sachs in taking a much more bearish view in more recent months, predicting in December that U.S. crude would drop below $30 a barrel in February.

Ever since the market detached from the $100 a barrel figure that anchored it from 2010 to 2014, analysts, traders and executives have struggled to pinpoint where it might ultimately settle, agreeing only that it would be a period of extraordinary volatility in the absence of any overt OPEC guidance.

Officials from less influential members such as Venezuela or Angola have occasionally referenced specific prices, generally in the vicinity of $70 to $80, but the bigger Gulf producers have largely avoided any public mention of a new reference point, leaving the market adrift. (Reporting by Jonathan Leff; Editing by David Gregorio)




NewBase Special Coverage

News Agencies News Release 08 March 2016

Japan: 5 years after Fukushima , there's no need for nuclear power, says former Japan PM Naoto Kan CNBC - Leslie Shaffer

As the fifth anniversary of Japan's massive earthquake and nuclear disaster approaches, the country's former prime minister said it was time to do without nuclear power.

"If you look at the reality of these last five years, Japan spent two years without a single nuclear plant on line. There are now a few active reactors, but still, that's only a handful," Naoto Kan, who was prime minister when the Great East Japan Earthquake struck, told CNBC. His comments were translated from Japanese.

"These five years have demonstrated that we can secure enough power without nuclear plants. That's why I believe we should stay away from the large risk posed by nuclear plants and focus instead on renewable energy by changing our sources of power," Kan added.

Kan isn't alone in his opposition to nuclear power; opinion polls have showed that a

majority of Japanese people agree. But he blamed the current ruling party, the Liberal Democratic Party the recent restart of four reactors, which had been shuttered in aftermath of the disaster. Kan is a member of the Democratic Party of Japan.

"The Liberal Democratic Party, which ran on a platform of returning to nuclear power, won all the major elections," Kan said. "The main reason is the [Shinzo] Abe administration focused the elections on economic policy. Now these economic policies are at a dead end, while the people's anti-nuclear sentiment remains strong." Kan was referring to Abe's economic stimulus program, known as Abenomics, which has a mixed track record in its aim to kick start the long-moribund economy out of deflation.

On March 11, 2011, a magnitude 9.0 earthquake struck Northeast Japan. It was one of the most powerful quakes on record, unleashing a tsunami along 700 kilometers (435 miles) of coastline.

The earthquake and tsunami triggered a meltdown at the Fukushima Daiichi nuclear plant, which contaminated nearby towns in what was the world's worst nuclear disaster since Chernobyl in 1986.

According to the latest estimate, 15,894 people were killed in the combined disasters; an additional 2,562 others are still listed as missing, and more than 450,000 people were forced from their homes.




Five years on, the decommissioning effort at Fukushima Daiichi is still in its early stages, and is expected to take 30 to 40 years. Just last month, three former executives from Tokyo Electric Power (Tepco), the company that operated Fukushima Daiichi, were indicted for failing to take safety measures to prevent a nuclear disaster. They are the first Tepco officials to charged over the meltdown.

The government's immediate response to the disasters was "very complicated," Kan told CNBC."The natural disaster and the nuclear accident occurred and unfolded at the same time. That was the most difficult aspect," he said.

"If it had only been the earthquake and tsunami, the first stages would have been difficult. There were lots of victims, but there were previous examples of how to respond," he said. "In the case of the nuclear crisis, we didn't know how serious it would become. The situation kept escalating."

Kan cautioned that the nuclear disaster was not yet over.

"There is still contaminated water coming out of the buildings of reactor one to four. Tepco says it is storing it in tanks, but part of it is leaking out into the ocean," he said, adding that radioactive particles were also still leaking, while nuclear debris remained in the reactors that melted down.

Additionally, the human cost of the disaster was ongoing, he noted.

"There are still more than 100,000 evacuees from Fukushima who are unable to return home.

Even if the government and Fukushima prefecture say they will, there are still many women with young children who have decided to leave the area," he said.




Considering Alternatives to Layoffs for Future Downturns O&G by Valerie Jones|Rigzone Staff

While 2016 began with a bit of uncertainty for the oil and gas industry, in the first couple of months, we’ve seen companies continue to announce more layoffs, and reorganizations of senior executives at oil supermajors. The industry is still feeling the repercussions of the overabundance of crude oil, which caused the prices to plummet more than a year ago.

Companies are being forced to make tough decisions in regards to their workforce. In September, Rigzone explored the idea of part-time work as an alternative to further workforce reductions. While some agreed it was a good idea, its feasibility to implement and getting the industry to support it presented some roadblocks. Paula Waggoner–AguilarPaula Waggoner-Aguilar, President, The Energy CFOPresident, The Energy CFO Rigzone spoke with Paula Waggoner-Aguilar, president of The Energy CFO, a firm that provides CFO and other finance leadership services to private energy business owners in Texas, about other possible alternatives to layoffs.

A Focus on Efficiency In the wake of the oil and gas industry downturn, several companies have adopted the “do more with less approach” in order to be more efficient with a smaller headcount. Waggoner-Aguilar said assuming companies are still operable and revenues are coming in, they should look at more efficient means of operations. “They should be looking at ways to streamline, simplify and automate operations such as leveraging new mobile technologies to cut their operating costs,” said Waggoner-Aguilar, who has more than 20 years of experience in the energy industry. “One small change in your operating costs can compound over time. When you [reduce headcount], it’s typically a one-time cut, whereas trimming operating expenses is something you can do over and over.” Something else Waggoner-Aguilar encourages her clients to consider: offering their services to another sector in the energy value chain, if possible. For example, companies in engineering services may be able to make the change and provide services to downstream companies, many that are faring better than upstream companies during the downturn. While this isn’t the industry’s first downturn – and presumably will not be the last – it seems fitting that companies should develop a more proactive, rather than reactive approach to the downturn. “Honestly, I don’t really know if people plan for a downturn. With risk management, we should,” Waggoner-Aguilar said. “Before the downturn, I know a lot of companies who planned for long-term equilibrium prices, say, $60 oil for 10 years or longer and planned their staffing around that.” But many industry vets who are experiencing their third, fourth or even fifth downturn may be able to use their experience to better weather future storms.




“For those who have been in the industry for 20 years or more, it seems like there is a common playbook for downturns,” she said. “Why not ask if there’s a better way to go about [cost reductions]? It’s going to take a commitment and uncomfortable conversations need to happen at all levels.” A Little Imagination When it comes to finding alternatives to mass layoffs, some of the thinking must be out-the-box. “I’ve seen where companies changed their bonus incentive to encourage employees to find new ways to cut operating costs. That’s how they earned their bonuses,” she said. “There was an immediate display of entrepreneurial spirit by changing the bonus to an operational excellence target and empowering employees to come up with solutions while honoring safety objectives.” Waggoner-Aguilar also mentioned other methods, including deploying workers to other departments, cutting costs through virtual offices, offering unpaid leave and furloughs and offering part-time work. “I think flexible work arrangements like three-fourths or part-time work should be explored more. Talent management, historically, was geared towards managing and incentivizing full-time staff,” she said. “Workers have the fear that once they go part time, they will not be considered for future opportunities or tagged as the next to go. In the future, we have to think about things differently. From a talent management perspective, how do we measure performance and incentivize outsourced, contract or part-time workers?” Recently, Norway’s Aker Solutions ASA announced it would implement temporary salary reductions for its maintenance, moderations and operations employees – a move Waggoner-Aguilar described as “progressive.” And Wood Group PSN plans to reduce pay to one-third of its UK contractor workforce by an average of nine percent. “Why doesn’t the government find ways to help incentivize companies to implement pay cuts instead of mass layoffs in a downturn? I know of people who are working for half of what they made before the downturn,” she said. “Most people, if faced with a pay cut vs. long-term unemployment, would take the pay cut. Obviously, companies are afraid that some people will leave the industry, and some will. There will be some people who are unhappy with it, but there’s never a way to keep everybody happy.” Waggoner-Aguilar suggested companies put some imagination into alternative solutions to layoffs. “Something I’ve always wondered, and it won’t work for all oil and gas jobs – especially field jobs – is cutting down the work week by a day,” she said. “Some business owners have suggested why aren’t companies loaning their employees to other companies, similar to secondment that we see in larger companies with joint ventures and operatorship?” While some of the ideas may seem difficult to implement, Waggoner-Aguilar feels it’s important to spur the discussion and change the way of thinking. “As people, we have a natural strategic planning bias where we think [the downturn] will not happen,” she said. But as history and the present has showed us, that’s not the case. It will serve the industry well to not only prepare for future downturns, but to look into some of the aforementioned layoff alternatives.




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 07 March 2016 K. Al Awadi

new base 803 special 08 march 2016

Business