new base special 10 august 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,

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 10 August 2014 Khaled Al Awadi

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

Iraq: Exxon and Chevron evacuate Iraqi Kurdistan as Islamic State advances Source: Reuters+ NewBase

Exxonmobil is evacuating staff from Iraq's autonomous Kurdistan region as the radical militants of the Islamic State advance towards its capital, an industry source said on Thursday, according to a Reuters report. Islamist militants have surged across northern Iraq and pushed to within little over 30 minutes drive of the Kurdish regional capital Arbil, sending tens of thousands of people fleeing. A spokesman for Exxon in Houston said the company does not comment on security matters.

Reuters also reports that Chevron is pulling staff from Iraqi Kurdistan as IS advances.Chevron said on Thursday it was evacuating staff from the Iraqi Kurdistan region as Islamic State militants pushed into the area. The company said it has pulled out some expatriate staff in Kurdistan after a safety review. It was not immediately clear if Chevron pulled its entire staff from the oil-rich region.




Taqa freezes Kurdish operations as violence grows Press Release + NewBase

The Abu Dhabi National Energy Company, known as Taqa, yesterday said that it had suspended operations at its oil development project in the autonomous Kurdistan region of Iraq, joining companies such as ExxonMobil and Canada’s Oryx Petroleum in halting or reducing work there as Islamic militants encroached on the region.

“As a result of recent developments and escalating instability around the Kurdistan Region of Iraq, Taqa has suspended operations at the Atrush Block and, as a precautionary measure, significantly reduced staffing levels,” the Abu Dhabi-based company said.

“Taqa continues to closely monitor the security situation with its Atrush partners and the Kurdistan Regional Government. The safety and security of the company’s staff and contractors are of paramount importance.”

US jets struck Islamic State positions in northern Iraq on Friday, a potential turning point in a two-month crisis that Washington said was threatening to result in genocide and to expose US assets. The air strikes, the first US military intervention in Iraq since the its withdrawal in 2011, were ordered by the president Barack Obama in response to massive gains by the extremist militants, Agence France-Presse reported.

The Kurdish natural resources ministry said that oil production had not been affected even as militants approached the region’s capital. The International Energy Agency estimates that oilfields in the region produced roughly 360,000 barrels per day in June.

Taqa last year posted its first annual loss following writedowns of US$884 million in Canada. Shortly after the announcement of the loss, the company’s chief executive, Carl Sheldon, who had held the role since 2011, stepped down, with his duties passing to Edward LaFehr.

Mr LaFehr said in April that the loss would not curtail the company’s plans to make future investments or service its debt. The company said it remains committed to the development of the Atrush Block and expects to start production next year




Iran to halt marine fuel exports for at least a month Reuters + NewBase

Exports of Iranian marine fuel oil have unexpectedly been halted for two weeks and will not resume for at least a month, a source at the National Iranian Oil Company (NIOC) said.

Trade sources said Iran could be stocking up on fuel oil for power generation in case of a shortfall in gas supplies. Growth in domestic demand for gas has outpaced local output, exacerbated by Western sanctions limiting Iran's ability to ramp up production from aging fields.

The halting in exports of Iran's cracked 380-centistoke - which makes up nearly a fifth of monthly sales at the bunkering hub of Fujairah in the United Arab Emirates - coincides with limited supplies into Asia, as high freight rates have hampered flows from the West and summer demand for the heavy distillate cut exports from the Middle East.

"NIOC International and National Iranian Oil Products Distribution Company (NIOPDC) stopped exports about two weeks ago," said the company source, who has direct knowledge of the move. It was not immediately clear when exports would resume.

"Nobody knows how long it would take but it is not less than one month," said the source, who asked not to be identified because of company policy on speaking to the media. Some traders estimated the halt in exports could last for up to three months.

"They (Iranians) are trying to stockpile some fuel oil cargos for October-November because there will normally be big shortages of gas so they have to burn a lot of fuel oil," said a Gulf-based trader. According to BP Statistical Review, Iran produced around 161 billion cubic meters (bcm) of gas in 2012, just three per cent higher than its consumption of 156 bcm.

Iran exports about 300,000-400,000 tonnes of bunker grade fuel oil a month. Most of this oil is sold from the port of Fujairah, a major bunkering hub in the Middle East with sales of up to two million tonnes per month, traders said.

"Bunker premiums are very very strong in Fujairah at the moment," said a Gulf-based marine fuel trader. Premiums of marine fuel sold in Fujairah over Singapore quotes shot up to nearly $30 a tonne at end-July, and have averaged around $10 above Singapore quotes - a level not seen since April, traders said.




Norway: Statoil awards integrated drilling service agreement to Schlumberger Source: Statoil + NewBase

Schlumberger Norway has been awarded a contract with Statoil to provide integrated drilling services for the Norwegian continental shelf licenses Gullfaks, Gullfaks Satellites, Snorre, Statfjord , Tordis/Vigdis, Visund. The agreement also covers exploration drilling on the Norwegian

continental shelf (NCS). Taking effect on 1 September 2014 the contract has a value of NOK 1.15 billion for an initial duration of two years. The contract also has three optional extensions, each for two years. The contract will provide jobs for some 350 people in Schlumberger Norway over the next two years.

Services under the agreement include the delivery of directional drilling, measurement while drilling (MWD), logging while drilling (LWD) and mud logging services. In addition, Schlumberger Norway will deliver RT data transfer, integrated operations/onshore support, drilling optimization and drilling equipment. Schlumberger Norway has been providing the services under this scope for the past years and holds extensive operational experience on the respective licenses and NCS exploration.

'The contract secures supply of services and competent personnel, which ensures cost efficient

operations through standardization and focus on the quality of tools and services. It contributes to Statoil’s focus area of safe and efficient drilling', says Geir Tungesvik, senior vice president, drilling and well in Statoil. The contract model ensures access to key drilling technologies as well as multidisciplinary work processes. Continuous collaboration between Statoil and Schlumberger Norway will be crucial in fully utilizing Schlumberger Norway’s technical and operational expertise. Schlumberger Norway has been awarded the contract as they have provided the best combined technical and commercial offer.

'Statoil is pleased to see that, with this agreement, Schlumberger Norway has responded positively to the industry’s need to increase efficiency and reduce costs', says Terje Rognan, vice president, drilling & well.




Shell gets nod to use ‘Transocean Barents’ at Ormen Lange Press Release,

A/S Norske Shell has received consent from the Petroleum Safety Authority Norway (PSA) to

use Transocean Barents to drill appraisal well 6305/8-2 at Ormen Lange field.

Ormen Lange is a gas field located in the Møre Basin in the southern section of the Norwegian Sea. The sea here varies from 800 metres to more than 1100 metres deep. This great water depth and the seabed conditions have made this a highly challenging development, requiring technological innovation.

Drilling is scheduled to start in August 2014.

Transocean Barents (formerly Aker Barents) is a 6th-generation semi-submersible drilling rig of the H-6e type. The rig was built at the Aker Stord yard in Norway and was completed in 2009.

Transocean Barents is owned and operated by Transocean Norway, from head offices in Stavanger.




Platts: European natural gas prices slide in July Press Release

Day-ahead natural gas and power prices in the U.K. and continental Europe continued to fall in July,

extending the bearish price trend seen in both markets since the beginning of 2014, according to data

released by Platts.

U.K. day-ahead natural gas prices declined 5% month over month and were down 43% year over year. Day-ahead natural gas prices on the Dutch TTF – continental Europe’s most liquid natural gas trading hub – also fell 5% month over month and 37% year over year. Daily average European natural gas demand fell 4% in July from the preceding month, dropping to 425 million cubic meters per day (cu m/day) from 441 million cu m/day in June. This was similar to the 6% decline in demand seen from June to July of 2013.

“The decline in demand would have been even greater than 4%

this July if not for an increase in natural gas use by power generators, who took advantage of lower gas

prices and switched away from coal,” said Alex Froley, Platts energy analyst. A Platts survey sample of natural gas used in power stations in the U.K., Belgium, Italy, the Netherlands and France showed that consumption of the fuel grew 6% in July, partially offsetting a 10% reduction in household use and a 3% decline in commercial consumption. In the electricity markets, the Platts Continental Power Index* (CONTI) fell 7.6% in June to €29.41 per megawatt hour (/MWh). This compared to the June level of €31.82/MWh and was down more than 21% year over year. "The benchmark German day-ahead power price actually rose slightly in July as output from wind and solar declined, but strong nuclear and improving hydropower generation in France saw that market's day-ahead price plummet by 16% to €24.58/MWh," said Henry Edwardes-Evans, associate editorial director of Platts Power in Europe. "The Dutch equivalent was down some 7%

to €34.63/MWh."

Prices in the U.K. power market continued their decline in June, down 5% month over month and down 27% year over year. This was a seventh consecutive month of decline in the day-ahead average, which hit a new four-year low of £34/MWh on July 17.

"Despite tightness in generation margins due to ongoing maintenance at nuclear, coal and natural gas power plants in the U.K., reduced summer

demand coupled with increased output from wind, solar and biomass kept the market comfortably supplied," said Edwardes-Evans. "Bearish U.K. NBP** spot gas prices helped strengthen natural gas' position as the dominant energy source in the U.K., which accounted for more than 40% of the country's energy mix in July."

NOTE: All figures are monthly averages of daily day-ahead contract prices as assessed by Platts.

Platts Continental Europe and U.K. Day-Ahead

Monthly Averages

Jul-14 Jun-14 Jul-13

CONTI (€/MWh) 29.41 31.82 37.34

TTF (€/MWh) 16.44 17.35 26.05

U.K. Power (£/MWh) 35.01 36.68 48.14 U.K. Gas (pence/therm) 37.52 39.50 65.28




Rosneft, ExxonMobil launch joint seismic exploration of Arctic News Agencies + NewBase Russia's President Vladimir Putin launched a joint project of Russia's Rosneft and US ExxonMobil

at the Arctic West Alpha rig on Saturday. The companies will drill in the northernmost well called Universitetskaya-1 in the Kara Sea. Rosneft CEO Igor Sechin and the Chief of ExxonMobil Russia Glenn Waller attended the opening ceremony. Sechin said the companies had to fulfil a complex of tasks of exploration drilling to ensure the

West Siberian gas reserves continued in the Sea. "As a result of this work, we are hoping to open a new Kara Sea oil province, which according to experts' estimates, would overcome such oil and gas provinces as the Gulf of Mexico, the Brazilian, Alaskan and Canadian Shelves by the resource volume and would match the resource base of Saudi Arabia," Sechin said. Sechin also said Rosneft was also preparing for the

scheduled drilling in the Black Sea, Sea of Azov, Pechora and Barents Seas. Putin said the project would benefit Russia’s and US economies, as well as the global energy market. The project kicked off less than two months after Russia’s oil giant Rosneft and Texas-based ExxonMobil Corporation launched the Berkut oil and gas rig in the Sea of Okhotsk at the end of June. The project with ExxonMobil and Russia’s Arctic shelf exploration as a whole came under threat after the United States, along with the European Union and several other countries, imposed sanctions on Russia’s energy, financial and defense sectors last week over Russia’s alleged involvement in the Ukrainian crisis. The European Union banned its producers from exporting to Russia technologies and equipment linked to deep water and Arctic oil exploration and production, as well as to shale-oil projects. The United States also introduced sanctions banning future contracts on supplying Russia with technologies and equipment used for hydrocarbon development. Rosneft has proposed to the country’s government to amend its corporate purchases law or scrap import duties on drilling equipment in the wake of the recent Western sanctions. Moscow stressed that Russia was never involved in the Ukrainian conflict and retaliated with a blanket ban on food imports from the European Union, the United States, Australia, Canada, and Norway.




Myanmar: PTTEP signs PSC for Block MOGE 3, onshore Source: PTTEP + NewBAse

PTT Exploration and Production Public Company Limited (PTTEP) has announced that, on 8 August 2014, the consortium consisting of PTTEP South Asia Limited (PTTEP SA), a subsidiary of PTTEP, Palang

Sophon Offshore and Win Precious Resources Pte. Ltd. (WPR), signed a Production Sharing Contract (PSC) with Myanma Oil and Gas Enterprise (MOGE) for exploration and production rights of Block

MOGE 3, the Republic of the Union of Myanmar as a result from the Myanmar Onshore Blocks Bidding

Round 2013. The consortium consists of PTTEP SA (the Operator), Palang Sophon Offshore and WPR with participating interests of 85%, 10% and 5% respectively. Block MOGE 3 (Padaukpin-Natmi Area) is located onshore in the Central Myanmar Basin, with the approximate acreages of 1,217 sq kms.

Exploration investment in block MOGE 3 is in line with PTTEP’s key strategic objective in expanding investment in the Republic of the Union of Myanmar.




China finds shale gas challenging - halves 2020 output target Reuters + NewBase

China has halved the quantum of shale gas it expects to produce by 2020 after early exploration efforts to unlock the unconventional fuel proved challenging, according to an industry website and a government source.

China, believed to hold the world's largest technically recoverable shale resources, is hoping to replicate the shale boom that has transformed the energy landscape of the United States. About four years of early evaluations and drilling have so far yielded one large find - Fuling field - in the most prospective gas province of southwest Sichuan, but experts say the Fuling success is hard to repeat due to complex geology and high cost of production.

Citing Wu Xinxiong, the head of China's National Energy Administration, industry website www.cpnn.com.cn , reported that China aims to pump 30 billion cubic metres (bcm) of shale gas by 2020, versus an earlier goal of 60-80 bcm mapped out in 2012. 'The previous targets were more of a vague prospect, a hope. 30 bcm is a more realistic goal,' said a government source who was briefed on the new target.

The revision, which is pending government finalization, would be negative for oil service sector companies that were hoping to

cash in on the major drilling activity needed to reach the earlier target. 'This is clearly negative for sentiment for some of the China oil service sector firms such as Anton Oilfield ,' said Scott Darling, head of Asia Oil and Gas research of JPMorgan in Hong Kong. 'This admission on shale gas reflects the challenges facing China's natural gas market.' It also means China would continue to focus on tapping easier-to-unlock gas resources, such as tight gas, which the Chinese oil firms are more experienced in, to reach a government-set total gas supply target of up to 420 bcm by 2020.

China's tight gas output may hit 80 bcm by 2020, according to forecasts by the China Academy of Engineering, doubling its estimated output of 40 bcm in 2013. The new 30 bcm shale gas target would mostly be contributed by the country's top two state oil firms, PetroChina and Sinopec Corp, experts have said, as they hold the majority of the country's oil and gas blocks, as well as the expertise.

The government's efforts, led by the Ministry of Land and Resources, to open up the shale gas sector to independent players have had small success, as the blocks the ministry has to offer are of poorer quality and would entail hefty exploration costs. Attempts by international firms to participate in the shale gas development have not been wholly fruitful either, with Royal Dutch Shell and Hess Corp the only foreign firms that have landed production sharing contracts, while most of them, including Exxon Mobil and BP, have barely progressed beyond the preliminary stage of studying the blocks.




Kenya: ERHC Energy completes Block 11A 2D seismic survey

Source: ERHC

ERHC Energy has announced the successful completion of a major 2D seismic acquisition program of Block 11A in the Republic of Kenya. BGP acquired seismic data over approx. 1,000 line kms on behalf of ERHC and its operating partner, CEPSA Kenya (a wholly owned affiliate of Compañía Española de Petróleos, S.A.U. (CEPSA)), completing the work program requirements for the initial two-year exploration period under terms of the Block 11A Production Sharing Contract.

The seismic survey, paired with the structural mapping of prospective basins from a Full Tensor Gravity Gradiometry (FTG) survey completed last winter, will help to identify potential drilling targets in Block 11A. 'Interpretation of the seismic data is not yet complete, but we can say we are encouraged,' said Dr. Peter Thuo, General Manager of ERHC Kenya.

ERHC holds a 35 percent interest in Block 11A after farming out a 55 percent stake to CEPSA. The Block is situated in northwest Kenya, northwest of the significant Ekales-1, Agete-1, Etuko-1, Ngamia-1

and Twiga South-1 oil discoveries.

Location of Block 11A (Source: ERHC)




Congo (DRC): Fleurette completes seismic interpretation of DRC Blocks I &

II - seismic indicates c. 3 billion barrels of oil in place . Source: Fleurette Group

• Oil of DRCongo completes analysis of first and second phase seismic campaign

• Total investment in project of $75 million

• Seismic results indicate c. 3 billion barrels of oil in place

Oil of DRCongo, the Fleurette Group's oil exploration subsidiary, has announced an update of the interpretation of the recently processed 3D seismic surveys acquired in 2013-14 over its prospects in Blocks

I and II in Lake Albert in the Democratic Republic of Congo.

The seismic campaign (1st and 2nd phases) has covered approx. 700km offshore and 150km onshore. Oil of DRCongo has invested in excess of $75 million in the exploration works of the Blocks I & II so far including above $20 million on the seismic investigations. The seismic data acquisition itself was carried out by TESLA (UK). Oil of DRCongo employed 250 people based in Kasenyi, out of which 204 were Democratic Republic of the Congo (DRC) locals, for the seismic works.

Oil of DRCongo has now completed the interpretation of the seismic data. The analysis was undertaken by the UK's GeoTrace and Italy's Ecopetrol in conjunction with Sproule International. The analysis indicates around 3 billion barrels of oil in place (STOOIP). As anticipated from early stage seismic results, the oil in place on the DRC side of Lake Albert mirrors that of the Ugandan side. Therefore, the results show a potential significant resource which has the ability to fundamentally rescale the GDP of the DRC if it can be




safely and economically extracted and exported. As Oil of DRCongo has previously indicated, a production from Lake Albert of c. 50,000boe/day will increase the present GDP of the DRC by 25%.

Oil of DRCongo's next priority is the establishment of two exploratory wells plus a 3D seismic campaign acquisition focused on the most complex structures identified. Oil of DRCongo is presently carrying out a Feasibility Study aimed at evaluating the entire drilling exercise with particular reference to the two wells to be made on the identified prospects.

The preparation phase of the drilling includes relocation of some local communities, transport to the site of the drilling equipment, installation of a base camp for staff, new supply roads, a new dock on Lake Albert and a landing strip for moving personnel and equipment. The Tender Documents for the drilling works expect to be launched by the end of October 2014.

Oil of DRCongo has also made further progress on a number of important social commitments. Oil of DRCongo is proud that it, in its capacity as operator of Bocks I and II on the Albertine Graben, it has far exceeded the licencee's obligations to the DRC with regards to providing local community support.

Work has been completed on the refurbishment of the most critical sections of the Bunia-Kasenyi Road (14km over a total of 40km) into which Oil of DRCongo invested USD $700,000 jointly with the Government of the Oriental Province. The road is a vital artery linking the towns of Bunia and Kasenyi. Oil of DRCongo has invested over $4 million in other local projects including assistance to the medical/maternity centre in Kasenyi, staffed by two full time doctors and eight nurses. Oil of DRCongo was also proud to host the inauguration of the school in Jiba (North-West Tchomia-Block I area) for 400 students, which was also attended by the Governor of the Oriental Province H. E. Jean Bamanisa. A new school for up to 400 students will be built in the coastal village of Roo-Voo that will host the rig for the first of the two scheduled wells. The construction of 25 houses to relocate part of the local Community has been scheduled and is presently under a Tender Process.

Giuseppe Ciccarelli, CEO of Oil of DRCongo commented:

'These are very positive results from our extensive seismic campaign. We continue to believe the project has the potential to provide significant revenues and multiple other benefits to the people of the DRC, generating jobs, fuelling development and prosperity and contributing to social progress. We remain committed to making the investment necessary to progress the project, which has the potential to transform the DRC.'

About Fleurette Group The Fleurette Group of Companies is a Dutch entrepreneurial business with significant investment in diverse sectors, including natural resources, infrastructure, agriculture and technology. Fleurette has substantial investments and operations in the Democratic Republic of Congo (DRC). About Oil of DRCongo On 5th May 2010, Fleurette, through Caprikat and Foxwhelp, two entities created for the Project, entered into a PSC with the DRC Government relating to the oil exploration and production of the Blocks I&II on the Albertine Graben. Presidential Approval was granted on June, 18th, 2010. The Blocks cover an area of over 7000 km2, including onshore and offshore acreage. Caprikat and Foxwhelp Ltd, through Caprikat and Foxwhelp SARL (DRC), hold a 85% interest in the Blocks, while the remaining 15% is held by the DRC Government. Oil of DRCongo was established by Caprikat and Foxwhelp Ltd in the last Quarter of 2010 as Operator. It is responsible, on behalf of the interest holders, for the management and performance of all the activities envisaged by the PSC for the Blocks' development.




Mexico: Energy reform approved to speed up deals with Big Oil Source: Reuters + NewBase

After a months-long delay in passage of a landmark overhaul of Mexico's state-run energy sector, the government now plans to accelerate the timetable for inking joint ventures with private oil firms to reverse a slump in oil output, a senior government official said. Mexico's Congress put the finishing touches on an energy-policy revamp on Wednesday night, approving bills that implement a reform that ends the decades-old monopolies of state-owned oil company PEMEX and national power company CFE and aims to lure billions of dollars in investment.

The energy ministry will now announce a month ahead of schedule which oil and gas fields PEMEX will keep, following the reform in a so-called 'Round Zero' allocation. That in turn brings forward the timeline for tie-ups between PEMEX and major oil companies, which will also later be able to operate alone, part of a wider economic reform drive spanning telecoms to taxes that aims to boost Mexico's economic growth. 'Round Zero will be announced next week,' a senior government official told Reuters on condition of anonymity.

Oil majors like Chevron and Royal Dutch Shell have said they are eyeing new opportunities closely.

The cornerstone of the energy reform, a new hydrocarbons law, sets out a new contractual framework that offers private companies a cut of profits or production. But all-important commercial terms will not be known until the finance ministry sets them for upcoming public tenders. 'I think companies will be more convinced and satisfied once they have contracts in their hands,' said Miriam Grunstein, an energy specialist with Mexico City's CIDE research institute. 'Right now, they have nothing.'

The newly empowered hydrocarbons commission will regulate the sector, supervise contracts, manage bid rounds, and sanction violations including the power to rescind contracts. Grunstein added that the hydrocarbons law forbids companies from appealing the termination of contacts via international arbitration, a departure from international best practices. 'That's a pretty deadly provision for any company,' she said.

The final package of bills approved on Wednesday allow the government to absorb a portion of the massive pension liabilities shouldered by PEMEX and CFE so long as both can negotiate a leaner pension scheme with their respective unions. Shifting a chunk of pension debt to the government was pitched as way to prepare both for competition.

The energy ministry will determine which oil and

gas fields will be put up for bid starting next year.

'We are very encouraged,' Jeff Miller, president of North America's top oilfield services provider Halliburton, said in an emailed statement to Reuters. While reforms to the oil sector garnered most of the attention during the debate, a complete opening of the power sector will likely see the first investments. The reform creates an independent grid operator as well as Mexico's first-ever wholesale electricity market, long the sole domain of CFE.




August differentials offer insight into Aramco’s oil pricing Source: U.S. Energy Information Administration

Saudi Arabia produces and sells its crude oil via Saudi Aramco, its state-owned oil company. Like many such companies, Saudi Aramco sells its oil to long-term customers at an official selling price (OSP). Saudi Aramco adjusts the OSP monthly based on specific conditions in different regions of the world.

For example, refiners in the United States that import Arab Light crude oil this month will expect to pay the Argus Sour Crude Index (ASCI) price plus a differential of +$3.65/barrel. While differentials to the United States have not changed from July to August, Aramco has reduced its differentials for other destinations, especially Europe. According to Arab Oil & Gas, these reductions reflect the anticipated reopening of the Ras Lanuf and Es Sider terminals in Libya, which could increase that country's crude oil exports by 500,000 barrels per day. They also reflect the intention for Saudi oil to remain competitive in southern European markets.

Note: OSP is Official Selling Price; ASCI is Argus Sour Crude Index; and BWAVE is Brent Weighted Average. The differential charged to each region is based on a different crude oil price benchmark: ASCI for the United States,

BWAVE for Europe, and Oman/Dubai for Asia.

Saudi Aramco's OSP is calculated on a differential to a crude benchmark based on destination and crude quality, taking into account product yields and local market conditions. Each month, Saudi Aramco publishes these differentials, which determine the OSP for the following month.

• Asia. For crude oil exported to Asia, the OSP is a differential to the average of Dubai and Oman crude prices

published by the pricing agency Platts.

• Europe. Crude oil exported to Europe and the Mediterranean has an OSP based on the Brent Weighted

Average (BWAVE) published by IntercontinentalExchange.




• United States. Crude oil exported to the United States has an OSP based on the Argus Sour Crude Index

(ASCI), which is a price index based on crude oil produced from oil fields (Mars, Southern Green Canyon, and

Poseidon) in the U.S. Gulf Coast.

In 2013, Saudi Arabia produced 9.7 million barrels of crude oil per day with a total liquid fuels production of 11.6 million barrels per day, ranking it the second-largest producer in the world after the United States. Saudi Arabia exported more than 1.3 million barrels of oil per day to the United States in 2013, which represented 17% of total U.S. crude oil imports.

Source: U.S. Energy Information Administration, based on data from Bloomberg

Note: API is a measure of crude quality that reflects how heavy or light a petroleum liquid is compared to water.

US




Power-Gen & Water World Conference part of ADNEC this October

Delegates from over 65 countries are likely to attend the upcoming Power-Gen Middle East (PGME) and WaterWorld Middle East (WWME) Conferences and Exhibition to be held in Abu Dhabi. The two events will be held from October 12 to 14 at the Abu Dhabi National Exhibition Centre (Adnec). “Global interest in the Mena region is being driven by an estimated future growth in electricity

demand of, on average, seven per cent per year, which is likely to require an investment of as much as $283 billion within the region’s overall power sector, between 2014 and 2018," said Nigel Blackaby, event director of PGME. Dr Hisham Khatib, honorary vice chairman, World Energy Council, Jordan, and former Jordanian Minister of Energy, will be the keynote speaker alongside other prestigious speakers including Alan Thomson, managing director, Abu Dhabi Sewerage Services Company (ADSSC). “The Middle East offers exciting business opportunities for the global water industry,” said Alan Thomson. “Spurred on by a buoyant economy and population growth, the GCC countries are looking to invest $130 billion over the next decade to meet future water demand and introduce new measures to achieve long-term sustainable water and energy supplies. It is the goal of WaterWorld Middle East to connect investors with innovators to create a more sustainable path forward for water conservation and management, and ADSSC looks forward to learning more about best practices from international leaders in order to best protect this at-risk resource.” A first for region, the Ministry of Energy of the Russian Federation will also be hosting a forum during the conferences, endorsed by the Russian Energy Minister, as part of the Russian government’s commitment to providing global energy security, developing international energy cooperation and ensuring sustainable economic development of the MENA region. This full-day event is expected to attract additional delegates from around the globe interested in learning more about Russia’s 2030 Energy Strategy and investment opportunities in the energy sector. For the third occasion, WaterWorld Middle East will be held as a co-located event with Power-Gen Middle East, establishing itself as an important regional event dedicated to strategic and technical issues in the water and wastewater industry.

12-14 October 2014 at Abu Dhabi

National Exhibition Centre

(ADNEC), Abu Dhabi, U.A.E.




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

Your partner in Energy Services

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

Energy Services & Consultants Mobile : +97150-4822502

[email protected] [email protected]

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

the local authorities. He has become a reference for many of the Oil & Gas Conferences held in ththe local authorities. He has become a reference for many of the Oil & Gas Conferences held in ththe local authorities. He has become a reference for many of the Oil & Gas Conferences held in ththe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE ande UAE ande UAE ande UAE and Energy program broadcasted Energy program broadcasted Energy program broadcasted Energy program broadcasted

internationally , via GCC leading satellite Channels . internationally , via GCC leading satellite Channels . internationally , via GCC leading satellite Channels . internationally , via GCC leading satellite Channels .

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NewBase 10 August 2014 K. Al Awadi

new base special 10 august 2014

Economy & Finance