new base special 28 july 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 28 July 2014 Khaled Al Awadi

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




Just 140 tonnes of helium-3 could power the world for a year The National + NewBase

“There is no place on earth as desolate as what I was viewing in those first moments on the Lunar Surface,” said Buzz Aldrin, the second man to set foot on the Moon. By comparison, Mars with its thin atmosphere, polar ice caps and red soil, seems almost inviting. Yet it is still far more alien and hostile than anywhere in the deserts of the Empty Quarter or the Sahara.

On July 16, the UAE announced its ambition of launching a mission to Mars by 2021, and setting up the national space agency. Coming amid renewed global interest in space exploration, this programme will hopefully inspire a new generation of Emirati scientists and engineers.

These goals contrast with grander plans elsewhere. At a time of hyperbole over energy and resources shortages on Earth, people are inspired to scan the infinity of space for solutions.

One concept is to mine the Moon for helium-3, which is gradually deposited in lunar soil by the solar wind. This isotope could be used in fusion reactors to generate zero-carbon energy with almost no nuclear waste - just 140 tonnes of helium-3 could power the world for a year, the equivalent of 13 billion tonnes of oil.

But the Moon’s helium-3 is present only in tiny quantities, which would require mining almost 3 billion tonnes of lunar rock per year – the size of the entire Chinese coal industry. The world’s most advanced fusion reactor pilot, ITER in France, is not expected to start operations until 2027, and it runs not on helium-3, but on isotopes of hydrogen easily extracted from seawater.

Space-based solar power has also attracted attention. Orbiting solar panels, transmitting power to receiving stations on Earth via microwave beams, would receive much higher light intensity, not filtered by the Earth’s atmosphere, and they could be in daylight 99 per cent of the time.

Such solar systems suffer, though, from problems of maintenance, and the impact of space junk and micro-meteorites. Most seriously, putting their components in orbit costs $10,000 or more per kilogramme – making them enormously expensive unless launch costs come down.




This suggests a third idea – mining asteroids for materials and rare elements, and perhaps building systems in space itself. In April 2012 – backed by the Google chief executive Larry Page and executive chairman Eric Schmidt; the Aliens director James Cameron; and the British entrepreneur Richard Branson – Planetary Resources launched, metaphorically if not literally. The venture planned to use low-cost robotic spacecraft to harvest asteroids for platinum, gold, nickel, iron and other metals, as well as water for future space expeditions and for fuelling satellites.

Space mining faces the challenges of costs. It is difficult enough to run a mine reliably in the Australian outback, let alone the interplanetary vacuum. The world is not short of base metals such as iron and cobalt, even if new deposits are remote, low-grade or deep.

A large new source of a precious metal such as platinum or palladium would unlock many uses, for example in fuel cells and catalysts. But then it would have to be cheap – undercutting the economics of the asteroid mining venture.

These dreams of space cornucopia may one day be attainable – but they appear far-off. By challenging our ingenuity, though, we can give science back the thrill and glamour it had during the Apollo missions in the 1960s. The students fixing their eyes on the stars today are the scientists who tomorrow will create breakthroughs in solar power, nuclear energy, minerals, ultralight materials and robotics.

The desolation of the Moon or Mars contrasts with the natural and human riches of the Earth. Maybe the space programme’s true impact is not the resources it may find in outer space, but the innovation it can inspire on the ground.




GCC projects underpin sustainable development Gulf Time - Qatar

Driven by higher capital expenditure, GCC countries will see projects underpin their sustainable development and diversification, a new report has shown. According to QNB, GCC countries have grown strongly in recent years. High hydrocarbon prices and increased oil and gas production in some countries have boosted national incomes and provided governments with large surpluses.“But there has been a recognition in these countries that to support the growth momentum and create sustainable development, they need to diversify their sources of income beyond hydrocarbons,” QNB said in a report.

They have therefore used their sizeable surpluses to finance large projects with the aim of diversifying their economies and creating additional pockets of growth. As a result, the




contribution of the non-hydrocarbon sector to growth has increased in recent years, and is currently the main driver of growth in most of these countries.

A significant part of investments are going into infrastructure projects such as the building of new cities, roads, transport networks, real estate and power and water stations. This is partially to accommodate the region’s growing populations but mainly to create infrastructure that enables the private sector to play a bigger role in the economy.

In the long run, the dynamism and innovation of the private sector is expected to drive growth and development with the government focusing on creating the right physical and legal environment to encourage that process.

While this “horizontal diversification” away from hydrocarbons is the main common theme behind the large capital spending in GCC countries, there is also “vertical diversification” taking place. This represents investments in petrochemicals and other industries to move up the hydrocarbon value chain.

“Notwithstanding the diversification aim common across all GCC countries, there are important differences in the vision of each country and how they go about executing their visions,” QNB said.

Saudi Arabia’s ninth development plan for 2010-14 aimed to diversify the economy away from dependence on hydrocarbons and create jobs for the large and growing population. The kingdom’s development strategy is built around the creation of four new economic cities, each with its own strategic focus, such as knowledge-based industries and services, metals and food production, automotive products, logistics and agribusiness.

To encourage the development of the private sector, the government has given private companies the leading role as the master developers for the economic cities.




The largest economic city is the $93bn King Abdullah Economic City (KAEC) being developed by Emaar. KAEC plans for 2mn inhabitants by 2025 and includes the largest port in the Red Sea

region and a logistics and industrial area. It intends to leverage large-scale industrial complexes nearby to target industries such as petrochemicals, pharmaceuticals and automotive.

KAEC also aims to provide high quality living conditions near the recently completed King Abdullah University for Science and Technology, supporting the kingdom’s development of human capital.

In Qatar, the National Vision 2030 focuses on diversifying the economy away from hydrocarbons by building a knowledge-based economy through investing in human development and education. For example, the $7.5bn Education City project aims to create a regional educational centre of excellence by

building schools and attracting branch campuses of renowned global universities. It also hosts Qatar Science and Technology Park, which commissions applied scientific research and turns them into commercialised products. Similarly, Abu Dhabi’s Economic Vision 2030 also foresees diversifying away from hydrocarbons by building a knowledge-based economy through investment in education. For example, Abu Dhabi has established a number of branches of leading universities, such as New York University Abu Dhabi and INSEAD Abu Dhabi.

Meanwhile, with limited hydrocarbon resources, Dubai has diversified its economy into services sectors, such as retail, tourism, exhibitions, events, re-export and finance. It has invested heavily in infrastructure and logistics, such as large port and warehousing facilities and a range of free trade zones with minimal regulation and taxes.

This has helped to create regional business hubs in different industries, such as in manufacturing and services. Dubai continues to invest heavily in making the emirate an attractive destination for visitors, retail and to live. For example, the $147bn Dubai Land project, a tourism, leisure and residential development, is the largest real estate development in the GCC.

In Kuwait, the Kuwait Development Plan is a series of five-year plans starting in 2010 and stretching to 2035. The aim is to modernize and expand the country’s dated infrastructure with the strategic goal of turning Kuwait into a financial and trade hub.

A few priority projects such as Az-zour power station, water waste management projects and the building of schools and hospitals are already underway. The development of Boubyan Island Port is central towards transforming Kuwait into a regional commercial and trade hub.

“Overall, capital expenditure will continue to gather momentum throughout the GCC. This should underpin the process of diversification and moving towards a sustainable growth model in accordance with the national visions of each respective country,” QNB said.




Investments in power, energy to help industries in Oman BY TIMES NEWS SERVICE + NEWBASE

Planned investments in power generation and distribution as well as upstream oil and gas along

with its emphasis on increasing 'In-Country Value' (ICV) will see further development of ancillary

industries and more private sector participation in manufacturing activities in Oman.

When it comes to the economic and

business growth in the Gulf

Cooperation Council (GCC) and

Oman in particular for the second

half of 2014, the government

spending in large infrastructure

projects will continue to feed the

economy, says Rohit Walia,

executive chairman of Alpen Capital

— a leading investment banking

services provider in the region

"With the oil prices expected to rule

firm, the government will have the

necessary fiscal fire power to

continue with its investment

programme within the country," he

said

Speaking about the industry sectors

in Oman, Walia said that the

country offers important benefits to

manufacturers. Attractive power

tariffs and availability of land in

industrial estates and free zones

across the country along with world

class infrastructure facilities

(modern ports and road network)

and fiscal benefits completes the

entire envelop of facilities that new

projects look for. This, together with

a well-developed banking sector

and the country's strategic location

presenting access to Middle East

and North African (Mena) region, African, and European markets are all factors that can make

Oman a manufacturing hub for exports to these markets




Manufacturing activity

"Oman can certainly be an attractive destination for power intensive industries and also for those

projects where raw material or feedstock are available locally such as downstream petrochemicals

or metal processing and mining projects, to name a few. The government's ICV initiative will

encourage new manufacturing activity targeting the oil and gas equipment space and the railway

project amongst others. Oman's Free Trade Agreement with United States is another important

advantage which presents exciting opportunities to manufacturers which we think has still not

been fully exploited," he elaborated

"Besides manufacturing, Oman is also an attractive market for the services sector. Oman's

growing population and increasing middle class with higher disposable income presents

opportunities in sectors such as retail, hospitality, healthcare and education. We expect to see

steady flow of investments into these areas. We are seeing good interest from established Indian

companies who are willing to bring in their expertise and skills to participate in these sectors along

with local partners," Walia said

Alpen business strategy

About Alpen Capital's business strategy for Oman, he says that Oman is a very important market

for the company. "It was one of the first markets we established a presence outside Dubai as early

as 2008. We primarily work with large institutional clients in Oman to meet their investment

banking requirements. We are also looking at several transactions where in Indian companies are

looking at setting up a base in Oman and vice versa and we see this as a unique opportunity

given our wide expertise in the area.

Alpen Capital is currently working on at least five

potential projects in Oman which involve reputed

Indian companies seeking to set up manufacturing

facilities. The developments are going on. In certain

cases, MoUs have been signed with local investors

and project feasibilities are underway.

"The year 2014 has started out well for us and we

have advised on some interesting transactions

across locations including the launch of the first

sukuk in the region for this year for Dubai

Investments Park. In addition, we have worked on

several mergers and acquisitions and debt

transactions in sectors such as education, retail and

media," Walia said

"We are also quite active in the GCC-India corridor promoting cross border opportunities and have

staff working together to execute these transactions. We have published three research reports

this year," he added




Phillipines: Peak Oil & Gas reaches conditional settlement with Cadco

regarding SC 6 Cadlao Redevelopment Project. Source: Peak Oil & Gas

Peak Oil & Gas holds interests in Service Contract SC6 Cadlao (SC6 Cadlao) in the Philippines which contains the Cadlao Redevelopment Project. The Operator under SC6 Cadlao is Cadlao Development

Company (Cadco) formerly Blade Petroleum.

Peak’s interests are:

1. A prospective interest of 25% in SC6 Cadlao pursuant to the Cadlao Farmin Agreement (Cadlao FIA) and the

right to earn a further 25% interest in SC6 Cadlao or, alternatively, to receive a cash payment of approx. $6.7

million, pursuant to the Cadlao FIA; and

2. the right to acquire an aggregate 16.25% economic interest in SC6 Cadlao through its partial ownership of

VenturOil Philippines Inc and the related Shareholder Agreement (VO Interest).

As previously announced, Peak recommenced its arbitration process in respect to its dispute with Cadco regarding the Cadlao FIA. The Arbitration has been temporarily suspended at the mutual agreement of both parties following the execution of a conditional settlement deed. The Deed requires Peak, inter alia, to:

1. transfer its interests in Peak Royalties Limited which holds certain overriding royalty rights pertaining to SC6

Cadlao;

2. terminate the Cadlao FIA between Peak and Cadco which effectively releases any claim Peak has to direct

working interests in SC6 Cadlao (not including the VO Interest); and

3. terminate the Arbitration .

In return, Cadco will pay

Peak an amount of

c.$6.7m

The parties have agreed that settlement will take place on 6 August 2014, failing which the parties, unless otherwise agreed, will resume their original commercial and legal positions and the Arbitration will be

immediately recommenced. Peak will continue to retain its VO Interest regardless of the outcome of the settlement with Cadco.




Morocco: Tangiers Petroleum provides update on the Galp-

operated TAO-1 well offshore Morocco. Source: Tangiers Petroleum

Tangiers Petroleum has provided an update on the Galp Energia-operated TAO-1 exploration well located in the Tarfaya Offshore Block, Morocco.

The TAO-1 exploration well has intersected the shallowest and secondary objective, Assaka. Based on currently available information, no hydrocarbon shows have been encountered. A full petrophysical evaluation of the Assaka objective will be carried out at section TD. Drilling operations continue as planned towards the primary and largest objective, Trident. The TAO-1 exploration well has been designed to test Trident at its optimal location. Tangiers' interpret that success at Trident is not co-dependent on the results from Assaka.

The Company will provide additional updates as appropriate.

Tangiers Petroleum has a 25 per cent participating interest in the Tarfaya Offshore Block, which is being operated by Galp Energia with a 50 per cent interest. The remaining 25 percent interest is held by ONHYM (Morocco's National Office of Hydrocarbons and Mines), which is carried through the exploration phase. The high impact TAO-1 exploration well spud on the 26th June 2014 and is expected to intersect two of three possible objectives within 60 days from spud.




Russia: Hague court to order Russia to pay $50 billion in Yukos case Source: Reuters

Shareholders in defunct oil giant Yukos won a court battle against Russia in one of the largest-ever commercial legal cases, in which Moscow must pay $50 billion for expropriating the assets, Kommersant daily said, citing unnamed sources. It said the Permanent Court of Arbitration in the Hague would announce later on Monday that Russia must pay the compensation - half of the original $100 billion claim - to former shareholders in the company, once Russia's largest oil producer.

The verdict on the case, which has lasted for almost a decade, is due to be announced against the background of the deepest West-East rift since the end of the Cold War, over Moscow's role in turmoil in Ukraine. The newspaper said Russia was expected to appeal against the ruling.

The claim in the Hague was made by subsidiaries of Gibraltar-based Group Menatep, a company through which Mikhail Khodorkovsky, once Russia's richest man, controlled Yukos. Group Menatep now exists as holding company GML and Khodorkovsky is no longer a shareholder in GML or Yukos. Khodorkovsky, who is not fighting the action, was arrested at gunpoint in 2003 and convicted of theft and tax evasion in 2005. His company, once worth $40 billion, was broken up and nationalised, with most assets handed to Rosneft, a company run by Igor Sechin, a close ally of President Vladimir Putin.

In a case which Kremlin critics said offered a stark example of Putin's increasingly autocratic rule, Khodorkovsky was arrested at gunpoint in 2003 and convicted of theft and tax evasion in 2005. Putin justified the move by saying: 'A thief must be in jail,' quoting a popular Soviet blockbuster.

The newspaper said the court ruled that Russia had infringed an international energy charter, adopted in 1991, that envisaged legal issues for investments in energy sectors. The court also ruled, according to the newspaper, that Russia had to start paying the compensation by Jan. 2 next year, or face growing interest on the fine.

Rosneft and Yukos shareholders were not immediately available for comment in early business hours on Monday. Kommersant said the parties had declined to comment on the outcome, but it cites GML director Tim Osborne as saying GML will force Russia to pay out the compensation 'if it wouldn't make payments within the court-defined timeframe'.




The Russian leader pardoned Khodorkovsky in December after he had spent 10 years in jail. Khodorkovsky is no longer a shareholder in Yukos. Any funds won will be shared amongst the shareholders. The biggest ultimate beneficial owner is Russian-born Leonid Nevzlin, a business partner who had fled to Israel to avoid prosecution, who has a stake of around 70 percent. The other four ultimate beneficial owners, each of whom owns an equal stake, are Platon Lebedev, Mikhail Brudno, Vladimir Dubov and Vasilly Shaknovski.

After he was jailed, Khodorkovsky ceded his controlling interest in Menatep, which owned 60 to 70 percent of Yukos, to Nevzlin. Other shareholders have been pursuing separate actions. A case is being brought by former Yukos managers at the European Court of Human Rights in Strasbourg. An interim ruling by the ECHR in

2011 found partly in favour of the Russian Federation. GML shareholders are not expecting to claim twice, so if they receive monies pursuant to one case it would reduce their claim under the other, Osborne has previously told Reuters.




Senegal: Cairn Energy resumes drilling at the FAN-1 well offshore Senegal Source: FAR

JV partner FAR has advised that Operator Cairn Energy has resumed drilling at the FAN-1 well offshore Senegal. FAR had previously announced a modification to the Senegal drilling programme in order to incorporate essential maintenance. FAR holds 15% and is in a Joint Venture with Cairn (40%) and Operator, ConocoPhillips (35%) and Petrosen (10%). Drilling to date on FAN-1 has reached a depth of approx. 3,000 metres. The well is planned to be drilled to a depth of approx. 5,300 metres. The second Senegal well, SNE-1 is currently suspended and drilling will resume on completion of the FAN-1 well. SNE -1 has been drilled to a depth of approx. 1,900 metres and will be drilled to a total depth of approx. 3,300 metres.

FAR managing director, Cath Norman, said, 'These two wells offshore Senegal have the potential to radically alter the prevailing international view of the hydrocarbon potential of Senegal where no offshore wells have been drilled for more than 20 years. The two well program in the Atlantic margin is being closely monitored by many international oil and gas players because of the large prospect sizes being drilled and the potential for numerous nearby follow up targets in the event of success.

The FAN-1 well will test a stacked fan structure with the potential to contain approx. 900 million barrels of oil (mmbbls) with approx. 135mmbbls net to FAR which owns a 15% working interest. FAN-1 will be followed immediately by the SNE-1 well to be drilled on the shelf targeting approx. 600mmbbls of oil with approx. 75mmbbls net to FAR (reference: FAR ASX release of 27 February 2013)

As previously announced, the drilling program has been designated as 'tight' by the Operator and hence no information related to depth or formation will be provided during the drilling beyond what is required to meet ASX continuous disclosure obligations.

About the drilling offshore Senegal

FAN-1 is the first exploration well in a two well program, offshore Senegal with the wells to be drilled back




to back. The first well will be located on the North Fan prospect in 1,500m water depth. This well will be immediately followed by a second exploration well targeting a shelf edge prospect in 1,100m of water (See figures 2 and 3)

These will be the first deep water (>1,000m) wells drilled in Senegalese waters and the first offshore wells to be drilled for over 20 years. The two exploration wells will test combined prospective resources of approx. 1.5 billion barrels of unrisked prospective resources (225mmbbls net to FAR) and FAR retains a 15% working interest in the blocks. (Reference: FAR ASX release of 27 February 2013)

The FAN-1 well is a pure exploration well and, even if successful, will not be completed as a commercial production well. In the event of a success, the Joint Venture may decide to conduct further drilling and evaluation activities.


Your partner in Energy Services





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 of of of

experience in theexperience in theexperience in theexperience in the Oil &Oil &Oil &Oil & Gas sector. Currently working as Gas sector. Currently working as Gas sector. Currently working as Gas sector. Currently working as

Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for 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 sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations Manager in pent as the Gas Operations Manager in pent as the Gas Operations Manager in pent as the Gas Operations Manager in

Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has develoEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has develoEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has develoEmarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great ped great ped great ped great

experiences in the designing & constructingexperiences in the designing & constructingexperiences in the designing & constructingexperiences in the designing & constructing of gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulating stations and in the engineering of supply routes. ating stations and in the engineering of supply routes. ating stations and in the engineering of supply routes. ating stations and in the engineering of supply routes.

Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local the local the local the local

authorities. He has become a reference for many of the Oil & Gasauthorities. He has become a reference for many of the Oil & Gasauthorities. He has become a reference for many of the Oil & Gasauthorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andConferences held in the UAE andConferences held in the UAE andConferences held in the 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 .

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

NewBase 28 July 2014 K. Al Awadi

new base special 28 july 2014

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