new base special 17 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,

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NewBase 17 August 2014 Khaled Al Awadi

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

International renewable companies shortlisted for 2nd phase of Dubai solar park . The National + NewBase

Two dozen international renewable energy companies have been shortlisted for the second phase of a Dh12 billion solar park project in Dubai. The Dubai Electricity and Water Authority (Dewa)

said it had received 49 qualification documents for the Dh1bn, 100 mega watt Phase II of the Mohammed bin Rashid Al Maktoum Solar Park, Wam reported yesterday. The park is expected to produce 1,000MW by 2030.

The first phase of the project, which includes a Dh120 million, 13MW photovoltaic power plant at Seih Al Dahal, 30 kilometres south-east of the city, opened last year and has been connected

to the emirate’s power grid. The new 100MW plant will also rely on photovoltaic technology. Dewa is looking for a private partner who will own 49 per cent of the project. The qualification process began in May and is expected to close in October. Dewa did not disclose the names of the companies involved. However, Yingli, one of the world’s largest photovoltaic solar panel manufacturers, said in May that it would be bidding for work on the new plant. About 150 firms bid in the first phase.

“Through implementing the Dubai Integrated Energy Strategy 2030, Dewa is fulfilling the vision of our prudent leadership for the sustainable development of Dubai,” said Saeed Mohammed Al Tayer, the managing director and chief executive of Dewa. The Dubai Integrated Strategy 2030 aims to diversify the energy mix by 2030 to comprise 71 per cent from natural gas, 12 per cent from nuclear power, 12 per cent from clean coal and 5 per cent from solar power, Mr Al Tayer said.

Masdar, Abu Dhabi’s clean energy company, operates a 10MW photovoltaic plant at its headquarters and the 100MW Shams 1 plant near Madinat Zayed, which uses concentrated solar power to heat thermal fluid and produce energy through a steam turbine. The UAE is third globally, behind Spain and the United States, in terms of concentrated solar power investment and capacity,




KNPC to invest USD35bn in oil and gas projects Zawya + NewBase

A new five-year development plan, or Kuwait Development Plan (KDP) for 2015-2020 was announced earlier in August with a focus on economic reform and the implementation of several

long-stalled mega strategic projects, a senior government official said. The plan, which includes the establishment of joint Public Private Partnership (PPP) projects with capital exceeding KD 8bln, was debated and approved by the cabinet but, must still be approved by the parliament. The plan aims to address a range of challenges and imbalances facing the socio-economic development process, Hind Al-Subaih, Minister of Social Affairs and Labour and Minister of State for Development

and Planning Affairs. The plan has two objectives: 1. to address the imbalances in the economic reforms through giving a free rein to the private sector to play a bigger role in development; and 2. to realize the country's strategic vision through the implementation of mega projects, Al-Subaih explained. The country's last five-year development plan did not have a successful implementation rate as many of the previous plan's projects have been moved to the 2015-2020 plan. The plan has made only sluggish PROGRESS ; as of January 2014 the government had spent only 57% of the allocated budget. Some of the projects included in the plan are: * Construction of a metro project and KD 8bln rail project to link the five partners of the Gulf Cooperation Council; * A media city; * Privatisation of some public schools and cooperatives and university; * Further development of the Mubarak Al Kabeer Port on Boubiyan Island; * Al Zour 2 power generation project; * Al Zour refinery and the construction of a refinery and petrochemical complex in China as well as another petrochemicals complex in Vietnam; * Establishment of a joint stock low-cost housing company; * Madeenat Al Hareer (Silk City), a proposed 250-square-kilometer urban area in the northern Subiya REGION . It will feature the Burj Mubarak Al Kabir, a nature reserve, a duty free area, a nearby airport, a large business centre and other facilities; * Development of Failaka Island off Kuwait's eastern coast; * Expansion of the sewage network and plant in south Kuwait; * Solid waste treatment facility in Kabd in northwest Kuwait; * Construction of a new terminal at Kuwait airport.




Furthermore, Kuwait has confirmed the network layout for its new $20bln metro with construction due to begin in 2017. The three-line system would include 61 stations and cover the entire capital. A 23.7-kilometre line would run from Salwa to Kuwait University, with 19 stations. A 21-kilometre line would run from Hawally, stopping at 27 stations to end in Kuwait City. A third line would stretch 24 kilometre from Kuwait International Airport to Abdullah Al Mubarak area, passing

through 15 stations. Furthermore, oil sector spending is expected to expand in the upcoming years. The Kuwait National Petroleum Company (KNPC) chief executive Mohammed Ghazi al Mutairi said earlier this year that KNPC would invest $35bln on expanding oil and gas projects over the next five years. Much of this will be spent on Kuwait's Clean Fuels Project (a major component of Kuwait's current development plans), which involves a series of refinery upgrades.

Such development projects will undoubtedly spur and stimulate the country's national economy to include wider aspects like housing, education, health, airports and harbors, in addition to oil and infrastructure projects. The targeted development projects are part of the State's drive to diversify national income sources by MEANS of promoting the private sector's investments and boosting the competitive edge of other sectors. If the government and National Assembly establish a better working relationship, major progress is expected on development projects.




Omani TMK GIPI to supply pipes for AbuDhabi Carbon Capture Project Oman Observer + NewBase The Sultanate’s leading pipe manufacturer, TMK Gulf International Pipe Industry (TMK GIPI) LLC, part of global pipe manufacturer TMK, has won a contract to supply 8” pipes with WT up to

14.4mm, API 5L X65 Sour with 3LPE coating for the Abu Dhabi Carbon Capture Project — a MASDAR/ADNOC joint venture project in the United Arab Emirates.

Manufacturing such a high wall thickness for 8” OD pipe is going an extra mile which TMK GIPI has achieved in the region, the company said in a press statement. 3LPE coating system is a multi-layer coating structure composed of three coating materials of fusion bonded epoxy (FBE), copolymer adhesive and PE or PP top coats

for steel pipe anti-corrosion. With years’ of experience and expertise in 3LPE pipes and anti-corrosion coating materials, TMK GIPI has established itself as a leading level technology player in the Sultanate and been well recognised for its remarkable performance in oil & gas pipeline corrosion-resistant field.

Vladimir I Shcherbatykh, CEO, TMK GIPI, said: “We are visualising a good traction and signs of improved demand for our pipes and coating services. The company shall continue to open newer avenues and deliver superior customer value and sustained leadership position locally, within GCC and in the world markets.”

TMK Gulf International Pipe Industry (TMK GIPI) was established as a Limited Liability Company in Sultanate of Oman in January 2007. TMK GIPI is the first manufacturer of High Pressure Steel Line Pipes and Casing Pipes in Oman and the first mill in MENA region and sub-continent of India to manufacture high pressure 24” Electric Resistance Welded (ERW) Steel Pipes.

Today, TMK GIPI is a part of TMK, which is a global steel pipe manufacturer with about 30 production sites in the United States, Russia, Canada, Romania, Oman, UAE and Kazakhstan and two R&D centres in Russia and the USA.




India's Chennai Petroleum Plans Iran Oil Imports After Two Years Bloomberg + NewBase

Chennai Petroleum Corp. (MRL), a unit of India’s largest refiner, plans to resume crude imports from Iran after a two-year gap as insurers return to the market.

“This year, we plan to restart Iran OIL purchases,” Managing Director S. Venkataramana said in a phone interview. “We are already talking to the re-insurers

for this, and we are getting POSITIVE responses so far.”

Chennai Petroleum, controlled by Indian Oil Corp. (IOCL), plans to import about 300,000 metric tons of oil from Iran for the year ending in March 2015, he said. Western sanction designed to stop Iran from developing nuclear weapons had hampered the company’s ability to benefit from 90-days CREDIT offered by the Persian Gulf producer, triple what others make available.

“As a result, the working capital requirement of the company has increased, resulting in higher interest expenses,” the refiner said in the annual report on its website.

Iran pledged to continue talks with six other nations after failing to clinch a long-term deal on its nuclear PROGRAM in Vienna last month. Iran agreed to scale back that program last year and in return was allowed to maintain crude exports at about 1.1 million barrels a day.

Chennai Petroleum operates two refineries in southern India with a combined capacity of 11.5 million tons a year. The bigger of the two refineries at Manali, with capacity to process 10.5 million ton of oil annually, was built 45 years ago to use crude from Iran.

Indian Oil had a 51.9 percent interest in Chennai Petroleum as on June 30, while Naftiran Inter Trade Co., the Swiss-based subsidiary of National Iranian Oil Co., held 15.4 percent, according to the Bombay Stock Exchange website.

“We can buy 1 million tons a year from Iran, but because we will start imports in the latter half of the year, it may be about 0.3 million tons this year,” Venkataramana said. The refiner last imported Iranian oil in the year ended in March 2012.




Attarat Power Company Awaits Jordanian Government's Nod for Oil Shale Power Project. Jordan Times + NewBase

The Attarat Power Company is awaiting Jordanian government’s response on SIGNING $2.4 billion oil shale-fuelled power plant project, according to a local newspaper.

"The government approved the deal... but it seems the National Electric Power [Company] is still waiting for official approval [over] parts of the AGREEMENT from the... concerned authorities before they can invite us to SIGN the documents," Andres Anijalg, chairman of the Attarat Power Company, said in an e-mail to The Jordan Times.

Anijalg said he hopes the power company WILL get the approvals from the concerned authorities shortly, ALLOWING the company to sign power purchase agreement with the government.

Anijalg noted that the Attarat Power Company has not received an official notification from the energy minister about signing the agreement. "As soon as the government of Jordan is ready to sign the agreement with Attarat Power Company, we can move forward with the necessary preparations to start the construction next year," he TOLD the newspaper.

The Jordanian cabinet approved the power project earlier this year. Attarat Power Company is a subsidiary of Eesti Energia and its partners in Jordan are YTL Power International Berhad, which owns 30% of the company, and Near East Investment, which owns 5%.

The project would require an estimated investment of $2.4 billion. It would be financed by $1.4 billion loan provided by the Bank of China and the INDUSTRIAL and Commercial Bank of China, and guaranteed by China Export and Credit Insurance Corporation.

The plant's 470-megawatt capacity will account for some 15 per cent of Jordan's current overall electricity capacity of 3,200 megawatts, said The Jordan Times.




Jordan to buy gas from Gaza starting 2017 – minister Jordan Times + NewBase

Jordan will import about one-third of its needs of natural gas from Gaza Strips' offshore gas fields

at the end of 2017, Minister of Energy and Mineral Resources Mohammad Hamed said Saturday. In October, the National Electric Power Company ( NEPCO ) will sign a letter of intent with British Gas Group, which has concession rights to explore for gas offshore Gaza Strip, to import natural gas, the minister told The Jordan Times in an interview. NEPCO will import 150-180 million cubic feet per day of natural gas from fields the company is developing offshore Gaza Strip, said the minister. "During the first quarter of 2015, NEPCO will sign the agreement to purchase gas from British Gas Group." Natural gas will be supplied to Jordan through the Arab Gas Pipeline, which is a natural gas pipeline that stretches from Egypt into Jordan and other neighbouring countries, Hamed noted. "The amount of gas NECPO will import will cover about 30 per cent of the country's daily needs of natural gas for power generation," he added.




Jordan consumes about 500 million cubic feet of natural gas per day for production of electricity, the minister said. "The agreement with British Gas will be the first in the region. It will greatly help reduce the losses of NEPCO amidst rising costs of energy production."

NEPCO was forced to purchase more expensive heavy fuel and diesel for power production following repeated cuts in natural gas supplies from Egypt blamed on terrorist attacks on the pipeline. The last cut in supplies was January this year, said the minister.

The company's losses reached JD1.085 billion to date and are expected to reach JD1.3 billion by the end of this year. "The agreement between NEPCO and British Gas Group is part of the government's efforts to diversify energy resources and reduce burden on the state budget," he said.

The government is also willing to look into requests by other companies to import gas from British Gas and will allow them to import gas from these fields, he added. "We are keen on reducing costs and are also going ahead with other projects such as the liquefied natural gas terminal to meet the energy challenge," said the minister.

When asked about the price of Gazan gas, Hamed said: "The price of the gas will be similar to the price of gas the Arab Potash Company will buy from Israel under a deal it signed earlier this year."

In February, the Arab Potash Company signed a $771 million agreement with US-based Noble Energy under which the latter will provide the company with 66 billion cubic metres of natural gas over a period of 15 years. The Financial Times reported that Noble Energy will sell the gas based on a price of at least $6.5 per thousand cubic feet, with upside linked to Brent crude oil prices.

British Gas Group and its partner, the Athens-based Consolidated Contractors International Company, owned by Lebanon's Sabbagh and Khoury families, were granted oil and gas exploration rights in a 25-year agreement signed in November 1999 with the Palestinian Authority.

Jordan imports about 96 per cent of its annual energy needs at a total cost of 20 per cent of the gross domestic product.




Iran to outstrip Qatar in South Pars field gas extraction Bloomberg + Zawya + NewBase

Iran will complete development of the South Pars Gas Field within the next three years, deputy managing director of National Iranian Oil Company said. Ali Kardour added that Iran's gas extraction from the offshore field will exceed that of Qatar, which also shares the large gas reservoir. "In three years, we'd have completed South Pars," he told Bloomberg. "We will have seen full production from South Pars, and we think we'll be ahead of Qatar. The official noted that Iran plans to finish the gas field's development, regardless of the sanctions imposed by foreign countries. Iran must develop shared fields "with or without sanctions", Kardour said. South Pars Gas Gield is one of the largest independent gas reservoirs in the world lying on the territorial border between Iran and the Persian Gulf state of Qatar. It is one of the country's main energy resources. This gas field covers an area of 9,700 square kilometers, of which 3,700 square kilometers belong to Iran. Kardour announced that Iran is rescheduling a plan to attract US and European oil investments. Iran was planning to introduce what it describes as a flexible and attractive oil contract at an event in London on November 3-5. It has pushed back the date until later that month since the nuclear talks between Tehran and the six world powers were extended. The contracts are "somewhere between a buyback model and a production sharing agreement"

and are designed to encourage long-term investors, he explained. Companies will not be allowed to take ownership of reserves, though they will be able to set up joint operating companies with local partners to manage fields, he added. "We'll get access to technology and foreign investment," Kardour said. "They'll be able to stay in the longer term, and access to oil will be provided to them." Iran possesses the world's largest natural gas reserves. It has an

estimated 1,193 trillion cubic feet of gas reserves and the world's fourth-biggest oil deposits of 157 billion barrels, according to BP's Statistical Review published in June 2014.




Prelude FLNG’s largest turret piece leaves Dubai WAM + NewBase

Drydocks World, the international service provider to the shipping, maritime, offshore, oil, gas and energy sectors, has successfully completed Turret modules 1& 2 to ‘sail away' for the world's

largest floating liquefied natural gas (FLNG) facility. This innovative FLNG facility will be stationed by Shell at its Prelude gas field off the northwest coast of Australia, unlocking new essential energy resources offshore to meet growing demand.

Once all six Turret modules are integrated in Korea and transported to Australia, they will comprise the largest Turret Mooring System in the world, weighing over 11,000 tons. For the first time at Drydocks World- Dubai, 8 lines

of 2×22 axle Self Propelled Modular Trailers (SPMT) were used to load out Turret modules 1 & 2 onto the ‘KOREX' shipping vessel sailing for Korea. As one of the most powerful heavy-duty transport systems worldwide, the SPMT equipment was used to load the heavy Turret components from the quay onto the barge.

Due to the weight of the Turret structures, Drydocks World's quay strength was challenged and determined strong enough to sustain the loads of Turret Modules 1 & 2. In conjunction with the advanced SPMT technology, the Mediterranean mooring manoeuvre was used with additional load out plates, in order to balance the immense operation. With the extreme size and weight to transport, Drydocks equipment and workforce maintained a safe and secure environment, successfully delivering the pioneering Turret Modules load out.

Drydocks World Dubai is privileged to be working with SBM Offshore, Technip and Shell on such a vital element of the Prelude FLNG project. The Turret Mooring System developed by Drydocks World is pivotal to the project for its ability to anchor the FLNG facility, securing the vessel at location for the duration of production operations. The Turret design will enable the FLNG facility to weather vane freely and remain stable against harsh weather conditions, including high velocity tropical cyclones. At nearly 100-metres, the Turret will be taller than the ‘Big Ben' clock tower in London, making it the largest Turret ever completed.

The Shell Prelude FLNG will bring new energy sources to the market that would alternatively be difficult to develop and not economically viable. As the largest structure ever sent to sea, displacing as much water as a fleet of six aircraft carriers, the Prelude FLNG will produce at least 3.6 million tons of liquefied natural gas per year, delivering an essential energy resource. Khamis Juma Buamim, Chairman of Drydocks World and Maritime World, stated, "Drydocks World Dubai is proud to be part of this important milestone in offshore gas liquefaction and to be involved in such a prestigious, record-breaking project. In constructing the world's largest Turret for the global gas industry,




Petronas pens PSC for block offshore Gabon Press Release

Malaysia’s Petronas, through its subsidiary PETRONAS Carigali International E&P B.V.,

has signed a Production Sharing Contract (PSC) for Block F14 with the Republic of

Gabon.

The offshore block is located in southern Gabon and measures an approximate 2,500 square kilometres surface area in water depth ranging from 2,000 metres to 3,000 metres.

Petronas will operate the block with an 80 per cent interest, while the Government of Gabon owns the remaining 20 per cent interest. The signing of the PSC took place at the Arambo Building, Libreville. Petronas was represented by its Vice President of Exploration International, Effendy Cheng Abdullah. The

Republic of Gabon was represented by H.E. Mr Etienne Dieudonné Ngoubou from the Ministry of Petroleum and Hydrocarbons and H.E. Christophe AKAGHA MBA from the Ministry of Economy and Prospective.

Speaking at the event, Effendy Cheng said, “The signing

marked an important milestone

as PETRONAS is re-entering the

Republic of Gabon, now focusing

on the deep water pre-salt play.”




India is increasingly dependent on imported fossil fuels as

demand continues to rise Source: U.S. Energy Information Administration

India's dependence on imported fossil fuels rose to 38% in 2012, despite the country having significant domestic fossil fuel resources. India ranked as the fourth-largest energy consumer in the world in 2011, following China, the United States, and Russia. The country's energy demand continues to climb as a result of its dynamic economic growth and modernization. India is the third-largest economy on a purchasing power parity basis and has the world's second-largest population, according to World Bank data.

As India modernizes and the population moves to urban areas, the country has shifted from using traditional biomass and waste to relying on other energy sources, including fossil fuels. India's newly elected government, with the Bharatiya Janat Party as the majority party, faces challenges to meet the country's growing energy demand, to secure affordable energy supplies, and to attract investment for domestic hydrocarbon production and infrastructure development.

Petroleum and other liquids. In 2013, India was the fourth-largest consumer and net importer of crude oil and petroleum products in the world after the United States, China, and Japan. India's petroleum product demand reached nearly 3.7 million barrels per day (bbl/d), far above the country's roughly 1 million bbl/d of total liquids production. Most of India's demand is for motor gasoline and gasoil, fuels used mainly in the transportation and industrial sectors, and for kerosene and LPG in the residential and commercial sectors. Consumers receive large subsidies for retail purchases of diesel, LPG, and kerosene, placing upward pressure on overall oil demand. Insufficient investment in developing more crude oil and liquids production has caused production to grow at a slower rate than oil demand.

Net oil import dependency rose from 43% in 1990 to an estimated 71% in 2012. The Middle East was the major source of crude oil supply to India in 2013, followed by countries in the Americas (mostly Venezuela) and Africa. Despite being a net importer of crude oil, India has become a net exporter of petroleum products after investing in new refinery capacity.

Natural gas. India did not import any natural gas until 2004, when it began to import liquefied natural gas (LNG). Because India has not been able to produce an adequate supply of domestic natural gas and has been




unable to create sufficient natural gas pipeline infrastructure on a national level, it increasingly relies on imported LNG to meet domestic demand. India ranked as the fourth-largest LNG importer following Japan, South Korea, and China in 2013, and it accounted for nearly 6% of the global market, according to data from IHS Energy. In 2012, LNG imports, mostly from long-term contracts with Qatar, accounted for about 29% of India's 2.1 trillion cubic feet (Tcf) of consumption. Natural gas mainly serves as a substitute for coal in electricity generation and as an alternative for liquefied petroleum gas and other petroleum products in fertilizer production and other sectors in India.

Coal. Coal is India's primary source of energy (equaling 44% of total energy consumption), and the country ranked as the third-largest global coal producer, consumer, and importer of coal in 2012. Despite its significant coal reserves, India has experienced increasing supply shortages as a result of a lack of competition among producers, insufficient investment, and systemic problems with its mining industry. Although production has increased by about 4% per year since 2007, producers have failed to reach the

government's production targets. Meanwhile, demand grew more than 7% annually over the past five years with the rise of electricity demand and lower power generation from natural gas and hydroelectricity as a result of recent supply disruptions. Because power plants rely so heavily on coal, shortages are a major contributor to shortfalls in electricity generation and consequent blackouts throughout the country.

Because coal production cannot keep pace with demand, India has met more of its coal needs with imports. Net coal import dependency has risen from practically nothing in 1990 to nearly 23% in 2012. India imports thermal coal for power generation from Indonesia and South Africa. The steel and cement industries are also significant coal consumers. India has limited reserves of coking coal, used for steel

production, and imports large quantities of coking coal from Australia.




Reasons for projected natural gas-fired generation

growth vary by region. Source: U.S. Energy Information Administration,

EIA projects that natural gas-fired electric power sector generation in the contiguous United States will increase to 1,600 million megawatthours (MWh) by 2040, a 1.3% average annual increase. This growth is spread throughout the Lower 48 states, and the reasons for the growth vary by region.

For the United States, increasing natural gas supply results in unexpected future growth in natural gas-fired electric generation, particularly after 2020. Total U.S. natural gas production increases 56% from 2012 to 2040, largely because of the development of shale gas, tight gas, and offshore natural gas resources.

The three regions with the highest growth in natural gas-fired generation, SERC, RFC, and WECC, also have the highest overall amounts of coal-fired generation. Coal-fired generation still grows significantly in SERC Reliability Corporation (SERC) and ReliabilityFirst Corporation (RFC), despite significant retirements of coal-fired capacity, and the increased cost of building new coal-fired facilities. In the Western Electricity Coordinating Council (WECC), natural gas-fired power competes with renewable sources for future electric power demand, while in the Texas Reliability Entity (TRE) region, natural gas accounts for almost all the growth in new generation.




The SERC and RFC regions cover many of the states in the Southeast, Mid-Atlantic, and Midwest. The

RFC contains the Appalachian Basin's Marcellus Shale play, the country's largest and fastest-growing

natural gas production basin. Both SERC and RFC contain portions of the Central Appalachian (CAPP) coal

production basin, and RFC contains the Illinois Basin, where coal production has expanded rapidly.

In both regions, natural gas-fired generation competes with coal-fired generation for existing power demand in the near term, but in the medium- to long-term, natural gas generation is driven by growth in overall power demand. Natural gas-fired generation in the RFC benefits from more retired coal capacity, but overall coal-fired generation still grows in the region, which has relatively more access than SERC to inexpensive coal from the Illinois Basin and western United States. Gas-fired generation in SERC benefits more from higher growth in overall electric power consumption (1.0% annual average growth in SERC, versus 0.6% in RFC). Only WECC and Florida experience more rapid growth in overall electric power consumption than SERC through 2040, but natural gas accounts for the largest share of this growth in SERC, versus renewables in WECC, and nuclear power in Florida.

• 2012-40. Natural gas-fired generation in the power sector in SERC rises by 109 million MWh, the largest

increase in the United States, while in RFC, it rises by 103 million MWh, the third-largest increase in the

United States. Coal-fired power remains the largest generation source in both regions through 2040.

• Near-term growth. In both SERC and RFC, natural gas-fired generation falls through 2014 in response to

higher gas prices, and then regains its market share in 2015 and 2016, in response to coal-fired plant

capacity retirements. Cumulative coal plant retirements through 2016 are greater in RFC (20 gigawatts) than

in SERC (12 gigawatts).

• Medium- to long-term growth. Increased natural gas prices cause natural gas-fired generation in SERC to

decline through 2019, with coal-fired generation increasing, while gas-fired generation increases in RFC.

Natural gas-fired generation rises in response to higher production in both of these regions after 2020,

surpassing nuclear generation by 2035.




Oil Prices keeps going down ,,,,,,,,,,




Shell sells American Gas Assets Pinedale and Haynesville Press Release,

Royal Dutch Shell made two separate transactions whereby the company will exit its Pinedale and Haynesville onshore gas assets in exchange for approximately $2.1 billion of cash, plus additional acreage in the Marcellus and Utica Shale areas in Pennsylvania.

In one agreement with Ultra Petroleum, Shell will acquire 155,000 net acres in the Marcellus and Utica Shale areas in Pennsylvania and receive a cash payment of $0.925 billion from Ultra in exchange for 100 percent of Shell’s Pinedale asset in Wyoming, including associated gathering and processing contracts, subject to closing.

In a separate agreement with Vine Oil & Gas LP and its partner Blackstone, Shell has agreed to sell 100 percent of its Haynesville asset in Louisiana, including associated field facilities and infrastructure for $1.2 billion in cash, subject to closing.

“We continue to restructure and focus our North America shale oil and gas portfolio to deliver the most

value in the longer term. With this announcement we are adding highly attractive exploration acreage,

where we have impressive well results in the Utica, and divesting our more mature, Pinedale and

Haynesville dry gas positions,” said Marvin Odum, Shell’s Upstream Americas Director.

The Shell net production from Pinedale in the second quarter 2014 was 190 million standard cubic feet per day (mmscf/d) of dry gas (32 thousand barrels of oil equivalent per day (kboe/d)). During the first half of 2014, Ultra’s net production from the assets Shell is acquiring in Pennsylvania averaged 109 mmscf/d (19 kboe/d).

“We first entered the Pinedale Anticline in 2001, and I am proud of our operational excellence, community

engagement, and leadership in responsible energy development over that time,” said Odum.

Shell’s Pinedale asset (which includes 19,000 net acres of leasehold interest, 1,108 gross wells and associated facilities, and an average of 0.7 percent overriding royalty interest in 11,500 acres) will be exchanged for cash and Ultra’s 100 percent interest in the Marshlands area (63,000 net acres) as well as its entire interest (92,000 net acres) in the Tioga Area of Mutual Interest (AMI), an unincorporated joint venture with Shell. After completion of this transaction, Shell will have a 100 percent interest in the Tioga AMI. The agreement is effective 1 April 2014, and is expected to close this year.

Shell’s Haynesville asset includes 107,000 net acres in in north Louisiana. The transaction includes 418 producing wells, 193 of them operated by Shell. As of 1 July 2014, the gross production from the Haynesville asset was approximately 700 mmscf/d of dry gas, with Shell’s net working interest share at approximately 250 mmscf/d (43 kboe/d). The agreement is effective 1 July 2014, and is expected to close in the fourth quarter of this year.




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]

Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of eof eof eof experience in thexperience in thexperience in thexperience in the Oil & Gas sector. Currently working as Technical Affairs Oil & Gas sector. Currently working as Technical Affairs Oil & Gas sector. Currently working as Technical Affairs 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 HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via HSpecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy awk Energy awk Energy awk Energy

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Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designinPipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designinPipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designinPipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designing & constructingg & constructingg & constructingg & constructing

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transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a referenctransportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a referenctransportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a referenctransportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference fe fe fe for many or many or many or many

of the Oil & Gas Conferences held in the UAE andof the Oil & Gas Conferences held in the UAE andof the Oil & Gas Conferences held in the UAE andof the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels . Energy program broadcasted internationally , via GCC leading satellite Channels . Energy program broadcasted internationally , via GCC leading satellite Channels . 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 17 August 2014 K. Al Awadi

new base special 17 august 2014

Economy & Finance