new base 815 special 24 march 2016

19
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 24 March 2016 - Issue No. 815 Edited & Produced by: Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Saudi Aramco starts producing gas at offshore Hasbah field Ahead of peak summer demand in the world’s largest oil exporting country Reuters + Gulf News State oil company Saudi Aramco has started producing natural gas at the offshore Hasbah field, it said in its weekly magazine, The Arabian Sun, on Wednesday, ahead of peak summer demand in the world’s largest oil exporting country. From its seven single-well platforms about 150 kilometres northeast of Jubail in the Gulf, Hasbah will provide up to 1.3 billion standard cubic feet per day (scfd) of gas while the adjacent Arabiyah field will provide around 1.2 billion scfd. The gas will be handled by the Wasit processing plant, helping to meet domestic demand for power generation. The Hasbah field has much higher levels of hydrogen sulphide and carbon dioxide than Arabiyah, making it a technical challenge.

Upload: khaled-al-awadi

Post on 22-Feb-2017

180 views

Category:

Business


1 download

TRANSCRIPT

Page 1: New base 815 special 24 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. Page 1

NewBase 24 March 2016 - Issue No. 815 Edited & Produced by: Khaled Al Awadi

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

Saudi Aramco starts producing gas at offshore Hasbah field

Ahead of peak summer demand in the world’s largest oil exporting country Reuters + Gulf News

State oil company Saudi Aramco has started producing natural gas at the offshore Hasbah field, it said in its weekly magazine, The Arabian Sun, on Wednesday, ahead of peak summer demand in the world’s largest oil exporting country.

From its seven single-well platforms about 150 kilometres northeast of Jubail in the Gulf, Hasbah will provide up to 1.3 billion standard cubic feet per day (scfd) of gas while the adjacent Arabiyah field will provide around 1.2 billion scfd.

The gas will be handled by the Wasit processing plant, helping to meet domestic demand for power generation. The Hasbah field has much higher levels of hydrogen sulphide and carbon dioxide than Arabiyah, making it a technical challenge.

Page 2: New base 815 special 24 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. Page 2

UAE: Chemical engineer at P.I seeks to make the best of sulphur The National - Nick Leech

A chemical engineer may have found a way to make better use of the sulphur surpluses that arise from Abu Dhabi’s sour oil and gas reserves. Saeed Alhassan Alkhazraji is convinced that he has almost everything needed to start a revolution.

An assistant professor at Abu Dhabi’s Petroleum Institute and director of its Gas Research Centre, Mr Alkhazraji has spent the past five years researching processes that will enable him to transform an increasingly important sector in the economy (provided he can obtain a US patent).

The chemical engineer wants to find new uses and applications for the country’s fast-growing and costly stock of elemental sulphur, which is being produced in increasing quantities thanks to reserves of sour, or sulphur-rich, oil and gas.

He believes he has found an answer to increasing sulphur surplus in processes associated with making common plastics. At current levels, sulphur represents about 2 per cent of the volume of thermoplastic polymers, but he wants to increase this to about 50 per cent.

If he succeeds, Mr Alkhazraji will have found a new commercial application for sulphur that will push down the costs associated with sour gas processing and thermoplastic production. Sulphur plays a key role in plant nutrition and growth and is the basis for sulphuric acid, the world’s most widely used chemical.

Saeed Alhassan Alkhazraji, an assistant professor at Abu Dhabi’s Petroleum

Institute and director of its Gas Research Centre, believes he has found new

commercial applications for the by-product, sulphur, that is recovered from

Abu Dhabi’s reserves of sulphur-rich oil and gas

Page 3: New base 815 special 24 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. Page 3

Sulphur is also used in agricultural fertilisers and pesticides, pharmaceuticals and cosmetics, vulcanising synthetic rubber and the surface treatment of steel. “We’ve worked on 10 polymers so far, including polythene, polypropylene and nylon," he says of a team that has more than 20 senior, postgraduate and doctoral students.

“The goal is to then create as many applications as possible to help mitigate the issue of the sulphur price, but unlike carbon, which isn’t toxic and from which you can make a lot of applications, the chemistry of sulphur makes it more difficult.

“All of the molecules are either smelly or highly reactive, which means

that applications that might increase its price are limited." In 2011, the UAE produced 2.2 million tonnes of sulphur, but that figure is predicted to treble next year.

“Sulphur is a big issue for the UAE. When you produce oil and gas in the UAE, it contains high levels of hydrogen sulphide," Mr Alkhazraji says. “This is a toxic gas that can be harmful to humans and the environment and has to be converted to elemental sulphur, which isn’t."

Highly toxic, corrosive and flammable, hydrogen sulphide is present in sour oil and gas reserves at levels between 1 and 30 per cent, but is extracted to produce clean gas using the Claus Process, a method that converts hydrogen sulphide to granular, elemental sulphur.

When the UAE’s reserves of sour gas were first discovered, they were considered too remote and too difficult to process. The gas was simply flared, or burnt off. But thanks to advances in sulphur-processing technology and the UAE’s increasing thirst for clean gas, the processing of sour reserves, such as Abu Dhabi’s Shah field, is now technically and economically feasible.

The largest sour gas project in the world, the US$10 billion (Dh36.7bn) Shah field contains gas that includes 10 per cent carbon dioxide and 23 per cent hydrogen sulphide, both of which have to be removed before gas is considered clean.

At maximum capacity, the Claus Process unit at the Shah field can process about 1 billion standard cubic feet of sour gas a day (scfd), producing about 540 million scfd of gas that is fit for use, and up to 10,000 tonnes of elemental sulphur a day, or 3.65 million tonnes a year. As Mr Alkhazraji points out, this is more than the annual rate of elemental sulphur production for the whole of Japan.

“Right now, sulphur trades at just below US$100 a tonne, but when the UAE produces the -elemental sulphur from the Shah field, they will oversupply the market, so logically, the price of sulphur will go down," the engineer says.

“Lets just say that if you would like to develop another field, you will have to think seriously about it."

Page 4: New base 815 special 24 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. Page 4

Despite sulphur’s increasing global surplus, market analysts, such as the mining, metals, fertiliser specialists CRU Group in London, predict that rising stocks will not affect the UAE’s production of sour oil and gas.

“Because sulphur is a byproduct with no necessary correlation with demand, it will always tend towards a surplus on a global basis," says Peter Harrisson, the head of CRU’s sulphur and sulphuric acid team.

“From 1992 until 2002, the market was in surplus every single year, but in the early 2000s the market was in deficit and so the price of sulphur was relatively high in comparison. “But as of the end of last year and this year, our view is that the market has turned back into surplus and that the price that was nearly $200 a year ago is now below $100.

“Is it important or unimportant to continue the production of oil and gas? I’d say it’s not, but it obviously sits as a revenue stream on its own and many oil and gas producers, including Adnoc, have specific businesses associated with sulphur.

“For those, obviously, it is important that there has been this drop in price now." The UAE’s demand for natural gas and the consequent increase in sulphur production is driven, in part, by

the country’s increasing demand for electricity that is produced in gas-powered plants.

The UAE also uses natural gas in the enhanced oil recovery techniques that are being used to extend the lifespan of its oilfields. Sulphur is a naturally occurring, non-metallic element and the 13th most abundant element in the Earth’s crust. In 2012, only 1 per cent of

the world’s 31 million tonne sulphur trade came from mined, elemental sulphur while 97 per cent, known as brimstone, was recovered from sour oil, oil sands and gas of the type found in Abu Dhabi. But different forms of the element require careful monitoring.

Sulphur dioxide has long been identified as a major cause of acid rain and air pollution and, more recently, sulphur dioxide emissions have been recognised as contributing to the formation of aerosol gases, which can be harmful to the environment and human health.

Page 5: New base 815 special 24 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. Page 5

Petrogas achieves production of 83,600 boepd in 2015 Oman observer - Conrad Prabhu

Oman-based Petrogas E&P LLC, the holding company of MB Holding Company’s exploration and production interests located in the Sultanate and overseas, has achieved a gross production of 83,618 barrels of oil equivalent per day (boepd) from its global portfolio of assets in 2015.

In the Sultanate, Petrogas’ interests include Block 7 (100 per cent interest), Block 5 (50 per cent) and Rima Satellite Cluster of Small Fields (75 per cent). The company also holds a 30 per cent interest in a service agreement in Egypt, and variable equity in a number of North Sea blocks offshore the Netherlands.

Pursuing an aggressive growth strategy, the company acquired three new exploration assets last year: Block 55 (100 per cent working interest) in the Sultanate of Oman, a farm-in into the DNO-operated Block SL018 offshore Somaliland (with a 40 per cent working interest), and a 40 per cent equity stake in an onshore Mozambique-A licence block operated by Sasol.

Gross production from the company’s Oman, Netherlands and Egypt assets totalled 83,618 boepd in 2015, with net productions averaging 41,694 boepd.

“Petrogas’ niche has been in taking on marginal assets and realising their potential through focused well and reservoir management, implementing waterfloods, further development drilling and producing stranded oil. The company is actively seeking new business opportunities in Oman, the MENA region, the North Sea, and other international regions,” the company stated in a report of its operational performance for the year.

Meanwhile, Petrogas subsidiary Daleel Petroleum LLC has boosted its output from Block 5 in the western part of the Sultanate, to 46,700 barrels of oil per day (bopd) in 2015, surpassing its target of 45,000 bopd for the year.

Daleel is a 50:50 joint venture between Mezoon Petrogas SAOC) and Mezoon Petrogas BVI. The company is engaged in the exploration, appraisal, development and production of hydrocarbon reserves in Block 5.

Page 6: New base 815 special 24 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. Page 6

Mideast crude exports projected to reach 24mn bpd by 2040: Official Gulf times - Santhosh V Perumal

Total crude exports from the Middle East are projected to reach 24mn barrels per day (bpd) by 2040, according to a top government official.

The medium term exports from the region are expected to be around 36mn bpd through to 2020, Dr Ali al-Amari, counsellor for Economics and Finance, Prime Minister Office, Qatar,

yesterday told the Middle East Economic Association (MEEA), organised by Doha Institute of Graduate Studies (DIGS).

The world oil demand grew by 1.54mn bpd in 2015 and anticipated to rise by 1.25mn bpd to average 94.23mn bpd in 2016 and that in the Middle East, it is projected to increase by 0.18mn bpd in 2016, he said.

For 2016, OECD (Organisation for Economic Cooperation and Development) Americas oil demand is projected to grow by 0.29mn bpd compared with the

previous year and Chinese oil demand in 2016 is projected to increase by 0.29mn bpd compare to 0.33mn bpd in 2015, according to him.

Total non-Opec (Organisation of the Petroleum Exporting Countries) oil supply in 2015 was revised to average 57.09mn bpd, he said, adding despite weaker oil prices, non-Opec supply in the first quarter of 2016 was a higher-than-expected by 0.41mn bpd to average 56.94mn bpd.

Middle East oil supply averaged 1.26m bpd in 2015. The total decline for 2016 is expected to be revised down due to ongoing geopolitical conflicts, he said, adding total oil supply is expected to fall to 1.22mn bpd in 2016.

Finding that the oil market has undergone some substantial changes since the last three years; he said diversification is required to enhance and create opportunities for private sector. Continues government infrastructure investment are driving the financial market growth, he said, adding there was a need to enhance capital markets and attract international inventors.

The MEEA conference comes in the backdrop of strong volatilities in oil prices that have considerable impacts on the macro economy of both developed and developing countries, depending on the extent and strength of the oil price-economic nexus of the country.

The Mena is particularly susceptible to those changes in the oil price because some member countries are major oil producers and exporters, while others are dependent on petroleum as consumers but may still benefit from the petrodollars saved by the major exporters, whether in terms of remittances, foreign aid or foreign direct investment, according to DIGS.

Page 7: New base 815 special 24 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. Page 7

Thailand: Mubadala commences Manora development drilling Source: Tap Oil

JV partner Tap Oil has provided an update on the Manora Oil Development in the Northern Gulf of Thailand (TAP 30% interest). Mubadala Petroleum, Operator of the G1/48 concession containing the Manora Oil Development, has advised that at 11.15am on 22 March 2016 the Atwood Orca jackup drilling unit commenced drilling MNA-16 the first of two planned development wells.

Following the commencement of Manora production in November 2014, and following a review of results from the initial development drilling programme, the Manora joint venture partners agreed in April 2015 that two Manora producer wells would be deferred. The MNA-15 and MNA-16 wells have now been scheduled and will be drilled to final total depths of 2,571m and 2,824m (measured depth) respectively and will be completed with electric submersible pumps (ESPs). Drilling and completion is planned to take ~17 days for each well on a trouble free basis. The two development wells are expected to increase Manora production performance. Tap has 2P reserves of 4 mmbbls (13.2 mmbbls gross) as at 31 December 2015 booked for Manora (ASX release 26 February 2016). Tap will review these reserves and contingent resources following development drilling and production performance. The Operator is also intending to drill an exploration well in the G1/48 Concession immediately after the conclusion of the two development wells. Tap has not yet confirmed its participation in this well. Tap will make scheduled announcements upon commencement of drilling and completion of the development wells. Tap’s next expected announcement is at the completion of both MNA-15 and MNA-16 drilling.

Page 8: New base 815 special 24 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. Page 8

Indonesia rejects Inpex's mega floating LNG project Source: Reuters

Indonesia's president on Wednesday rejected Inpex Corp and Royal Dutch Shell's proposal to build the world's largest floating liquefied natural gas plant in the country's east, saying an onshore plant would benefit its economy more.

The announcement is a blow to the two energy firms, as well as to Indonesia's energy regulator (SKKMigas), which warned last week that rejecting the $15 billion plan to process gas from the Masela field offshore would lead to delays and job cuts.

Shell and Inpex declined to immediately comment on the matter as they said they had not received official notification on the decision. It is unclear whether the companies would be involved in the onshore project.

President Joko Widodo said he backed the onshore LNG plan because it would provide bigger economic payoffs to Indonesia's impoverished east than the 7.5 million-tonne-per-year floating LNG project.

'This is a long-term project that concerns hundreds of trillions of rupiah. From these calculations, we have decided to build it onshore,' Widodo said in a statement. 'Our considerations are first we

Page 9: New base 815 special 24 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. Page 9

want the regional economy as well as the national economy to benefit from the development of the Masela block.' Supporters say an onshore LNG export terminal would spur much needed development in the eastern province of Maluku, including the construction of petrochemical and fertilizer plants.

Inpex and Shell submitted their floating LNG proposal back in September, but the president's decision was delayed for months due to divisions within his administration over the issue.

SKKMigas has warned that shifting to an onshore project would increase costs and could push the completion date back by three years from around 2026. However, the maritime coordinating ministry, which oversees energy, has said an onshore plant would be cheaper than a floating LNG facility.

Energy Minister Sudirman Said, who initially advocated the plant be offshore, urged SKKMigas to quickly meet with Inpex and Shell on the president's decision to prevent a long delay. He did not think the two companies would exit the project.

'These two investors will continue to work together because they've been working for this for 16 years and they've spent on exploration costs,' Said said. 'We will give them a chance to reassess this, but we want all parties to have the optimal benefit.'

The Masela block, located in the Timor Sea near Indonesia's border with northern Australia, is 65 percent owned by Inpex and 35 percent by Shell. State-owned Pertamina has said it wants a stake of at least 10 percent in the Masela block.

The decision came as Woodside Petroleum and its partners shelved plans to build the $30 billion Browse floating LNG project off Australia in the face of global oversupply. The pace of development of giant gas export schemes has slowed globally as LNG prices have plummeted with oil prices, prompting many companies to delay funding decisions until business conditions brighten. In Asia, LNG prices have plunged by 80 percent over the past two years.

Page 10: New base 815 special 24 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. Page 10

NewBase 24 March 2016 Khaled Al Awadi

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

US oil falls after big jump in stockpiles Reuters + NewBase

U.S. oil prices fell in Asian trading on Thursday, adding to a slump in the previous session, after stockpiles rose for the sixth week to another record, sapping the strength of a two-month rally in prices.

U.S. crude futures were down 10 cents at $39.69 a barrel at 0302 GMT, trading further below the important $40 level. It closed down $1.66, or 4 percent, at $39.79 a barrel on Wednesday. That marked the sharpest one-day drop for the front-month contract in U.S. crude since Feb. 11.

Brent crude futures were up 7 cents at $40.54 a barrel, after trading lower earlier in the session. They finished the last session down $1.32, or 3.2 percent, at $40.47 a barrel. Earlier this week, both benchmarks had risen by more than 50 percent from multi-year lows that hit in January.

The U.S. government's Energy Information Administration (EIA) said crude stockpiles climbed by 9.4 million barrels last week - three times the 3.1 million barrels build forecast by analysts in a Reuters poll. The continued rise in stockpiles is grinding away at the gains in prices that were largely driven by plans of major producers, including Saudi Arabia and Russia, to freeze production. "OPEC production is still high and Iran is expected to continue to ramp up," said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo

"I expect crude to come back down again and test the $35 level again if we continue to get builds," he said. The market was also supported by a release showing crude stockpiles at the Cushing, Oklahoma, delivery hub - an important data point - fell for the first time in seven weeks.

Things could get worse for oil bulls, with trading houses betting on oil markets being over supplied for at least two more years and looking to extend or lock in new leases on storage tanks.

Oil price special

coverage

Page 11: New base 815 special 24 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. Page 11

Warning that oil will stay low for two years Times of Oman + NewBase A warning that oil prices will stay low for 'next year or two' has been issued by the chief economist of a global investment house while in Oman.

With oil prices plummeting globally over the past year the Sultanate's finances have taken a hammering, forcing the government to embrace austerity measures such as freezing some employee benefits in state-run companies and increasing fuel prices. Fees for government services have increased, and more increases are likely,

while Income Tax for companies based in Oman is to be raised, and the Sultanate is moving towards introducing Value Added Tax (VAT) on goods for sale, along with other Gulf countries, in 2018 or 2019. Earlier this week Oman's Minister of Oil and Gas Dr Mohammed bin Hamad Al Rumhy said he hoped crude oil prices could recover by the end of this year if a meeting of Opec and non-Opec members scheduled to take place in Qatari capital Doha next month decides to freeze output. However, speaking on the sidelines of the Co-investment Roundtable of Sovereign and Pension Funds (CROSAPF) Working Committee here in Oman on Tuesday, John Greenwood, chief economist of Invesco, which represents hundreds of clients in 20 countries around the globe, said: "It is very hard to see the oil price picking up in the next year or two; it will take longer than we thought." "Excess supply and weak demand is the current issue faced by the global market," he added. He pointed out that there are four methods to cope with the current issues in the market. "The main thing is to cut the expenditure and it will help us to save a lot; it may include some projects as well," Greenwood said. The second method is to raise the revenues of the government. "It is not necessary to raise the taxes but the government can increase the rates of electricity, water and gasoline," Greenwood said. "Other methods to overcome this crisis are to sell assets and borrowing," he added. He said that all the Gulf states were moving to adopt many of these methods over the next two years to overcome this crisis period. The economist presented a topic on the outline of the major economic drivers and risk factors that the investors should be aware of and the investment opportunities.

Page 12: New base 815 special 24 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. Page 12

CROSAPF members are sovereign wealth and pension funds from around the world. It brings together investment professionals of public funds for presentations and in-depth discussions on global trends and recent issues related to investing. Participants of the two-day conference were welcomed by His Highness Sayyid Kamil bin Fahad Al Said, assistant secretary general of the Deputy Prime Minister's Office for Cabinet.

According to majority of the officials and participants, it is a good platform to get in touch with more than 100 investment specialist from all over the world and to exchange ideas. "It is an opportunity to exchange knowledge and introduce the investment opportunities in their respective countries to co invest," a participant said. Many other participants said the conference helps the Sultanate to showcase and invite the global investors to participate in its upcoming development projects. In the meeting, the sovereign and investment funds discussed a range of issues and the factors that may play a role in making investment decisions, including global trends and socio-economic variables that affect the investments in short- and long-term strategies. First day of the conference discussed topics like Next Generation Investor, Co investment collaboration platforms, and Venture Capital: inventing in Innovation. Mohammed Al Ardhi, the executive chairman of Investcorp and chairman of the National Bank of Oman, said the Sultanate has a lot of opportunities in investment. "Government is diversifying its activities to different sectors like tourism, logistics, port operations, etc and government is focusing more on the future," Al Ardhi said. The CROSAPF Working Committee meeting concluded on Tuesday and the delegates will take part in the Oman Economic Forum, which begins on Wednesday at the Shangri-La Barr al Jissah Resort and Spa in Muscat.

Page 13: New base 815 special 24 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. Page 13

NewBase Special Coverage

News Agencies News Release 24 March 2016

How can the oil and gas industry be more environmentally friendly? Silicone Engineering - Graeme Parton

Energy - and more specifically the oil and gas sector - has long played a fundamental part in the global economy. It fuelled the industrial revolution, and continues to keep the world moving now.

For all of its contribution, however, the industry is the subject of regular and growing criticism - much of it just. According to a Populus survey carried out in 2013, only tobacco companies are disliked more than energy firms by the UK public, while further research highlighted Shell and BP as the world's most hated brands.

This undebatable negative sentiment can be put down to two main things. The first is something that affects most industries: product pricing. The biggest problem, however, is sustainability-related; the pressure on these companies to minimise their impact on the environment is immense and growing as governments and their people become increasingly eco-conscious.

Recent cases in point

News in the US industry has, in recent months, been dominated by last year's major event involving the Southern California Gas Company (SoCal Gas). Back in October 2015, a significant leak was discovered at the Aliso Canyon natural gas storage facility. It continued for almost four months, until engineers managed to plug the opening permanently.

In that time, however, it's estimated that more than 104,000 tonnes of methane and ethane was released into the air, making it the single worst natural gas leak in American history in terms of environmental impact.

The negative effects were far from invisible as well. Thousands of local residents were impacted, with reports of nausea, headaches and nosebleeds. Households and schools have also been relocated as a result.Before that, we had the 2010 BP oil spill, which had a devastating effect on marine life in the Gulf of Mexico. It's also estimated to have cost the British firm approximately $42 billion. For public opinion to change, these events must be stopped. Companies across the sector need be seen taking action. Fortunately changes are afoot, and there are plenty of opportunities to improve. An increasing reliance on technology

As is the case in most industries, technology is having a significant influence on the way in which oil and gas companies work. In fact, it could be considered the key to improving sustainability in the field - for a number of reasons.

The main area in which it's helping is oil discovery. Seismic wave techniques - using energy movement to identify drilling opportunities - have been part of the industry's arsenal for decades

Page 14: New base 815 special 24 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. Page 14

already, helping companies to identify fruitful drilling opportunities without actually having to physically investigate. Recent technological advancements, however, mean that these tactics have become even more effective.

Firstly, we've seen major developments in 3D imaging technology. This sophisticated equipment is allowing geologists access to high-definition images of huge spaces beneath the earth, with ever-improving software giving them the power to promptly and thoroughly analyse what they see before any action is taken. By capturing multiple 3D surveys at different times, it's even now feasible to produce time lapses - video-like images of reservoir movement - to provide even more insight. The silicone effect

The extraction and processing of oil and gas is a major undertaking for any company. It involves a diverse range of machinery and equipment, the make-up of which can have a significant impact on efficiency and sustainability. Companies also demand reliability and durability, if they're to minimise the risk of devastating leaks like the one seen in Southern California.

To this end, companies across the sector have an opportunity to enhance their operations by embracing materials like silicone rubber. Known for its strength and temperature resistance, silicone is ideal for use in oil and gas pipeline construction, particularly in places with challenging climates - like Russia, where it can be extremely cold, or the Middle East, where the opposite problem exists.

Silicone presents similarly exciting opportunities to the renewable energy sector, where its durability benefits the creation of energy-creating equipment such as solar panels and wind turbine rotor blades. It serves as a handy alternative to the traditional use of petroleum-based organic products, which have a tendency to produce and leave behind a lot of damaging pollutants. The industry must keep learning

The key to achieving better sustainability and environmental friendliness in the oil and gas sector - as the above topics suggest - is research. Companies must keep contributing to the sector's efforts to discover and develop better processes and the tools needed to carry them out with maximum safety and efficiency. The frequency of leaks and spills has certainly decreased over time, but the drive to improve needs to continue if the sector is ever to shake off its negative reputation.

Page 15: New base 815 special 24 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. Page 15

Decoupling of global emissions and economic growth confirmed

IEA analysis shows energy-related emissions of CO2 stalled for the second year in a row as renewable energy surged

Global energy-related carbon dioxide emissions (CO2) – the largest source of man-made greenhouse gas emissions – stayed flat for the second year in a row, according to analysis of preliminary data for 2015 released today by the International Energy Agency (IEA).

“The new figures confirm last year’s surprising but welcome news: we now have seen two straight years of greenhouse gas emissions decoupling from economic growth,” said IEA Executive Director Fatih Birol. “Coming just a few months after the landmark COP21 agreement in Paris, this is yet another boost to the global fight against climate change.”

Global emissions of carbon dioxide stood at 32.1 billion tonnes in 2015, having remained essentially flat since 2013. The IEA preliminary data suggest that electricity generated by renewables played a critical role, having accounted for around 90% of new electricity generation in 2015; wind alone produced more than half of new electricity generation. In parallel, the global economy continued to grow by more than 3%, offering further evidence that the link between economic growth and emissions growth is weakening.

In the more than 40 years in which the IEA has been providing information on CO2emissions, there have been only four periods in which emissions stood still or fell compared to the previous year. Three of those – the early 1980s, 1992 and 2009 – were associated with global economic weakness. But the recent stall in emissions comes amid economic expansion: according to the International Monetary Fund, global GDP grew by 3.4% in 2014 and 3.1% in 2015.

Page 16: New base 815 special 24 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. Page 16

The two largest emitters, China and the United States, both registered a decline in energy-related CO2 in 2015. In China, emissions declined by 1.5%, as coal use dropped for the second year in a row.

The economic restructuring towards less energy-intensive industries and the government’s efforts to decarbonise electricity generation pushed coal use down. In 2015, coal generated less than 70% of Chinese electricity, ten percentage points less than four years ago (in 2011).

Over the same period low-carbon sources jumped from 19% to 28%, with hydro and wind accounting for most of the increase. In the United States, emissions declined by 2%, as a large switch from coal to natural gas use in electricity generation took place.

The decline observed in the two major emitters was offset by increasing emissions in most other Asian developing economies and the Middle East, and also a moderate increase in Europe.

More details on the data and analysis will be included in a World Energy Outlookspecial report on energy and air quality that will be released at the end of June. The report will go beyond CO2 emissions and will provide a first in-depth analysis of the role the energy sector plays in air pollution, a crucial policy issue that today results in 7 million premature deaths a year.

The report will provide the outlook for emissions and their impact on health, and provide policy makers with strategies to mitigate energy-related air pollution in the short and long term.

Page 17: New base 815 special 24 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. Page 17

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 24 March 2016 K. Al Awadi

Page 18: New base 815 special 24 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. Page 18

Page 19: New base 815 special 24 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. Page 19