New base 03 january 2018 energy news issue 1122 by khaled al awadi

Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Energy News 03 January 2018 - Issue No. 1122 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Ras Al Khaimah opens first oil, gas licencing round
RAS AL KHAIMAH GAS + Business Arabia
UAE-based RAK Gas has launched the first round of its oil and gas licencing in both London (UK)
and the northern emirate of Ras Al Khaimah, said a report. The energy licencing round opened
yesterday (January 1) in London and Ras Al Khaimah, reported state news agency Wam citing the
website of government-owned RAK Gas.
The licencing round follows a review by
RAK Gas of onshore and offshore sub-
surface potential. A 3-D seismic
programme covering around 2,000 sq km
of the offshore area got under way early
last month and is due to continue until
early February, stated the report.
The data room will be open until early
July, following which there will be a 3-
month period during which interested
companies can submit bids for acreage.
Contract awards are expected in October,
it added.
According to RAK Gas, the emirate’s
complex geology creates diverse
exploration opportunities, with both
speculative prospects and proven
prospects analogous to the Cretaceous
Carbonates in the offshore Saleh field, operated by Norwegian firm DNO, controlled by RAK
Petroleum, and now coming to the end of its commercial life.
Bids for a licencing round for four blocks in Oman closed on December 31. Block 43B, covering
11,967 sq km in the coastal zone, north of the Hajar Mountains, was previously relinquished by
Hungarian oil group MOL, and is seen by Oman’s Ministry of Oil and Gas as a conventional gas
play.
Block 47, covering 8,524 sq. km. adjacent to the southern boundary of Block 43B, was
relinquished by Norway’s DNO, said the Wam report.
Four gas and gas/condensate prospects have been mapped. Block 51, covering 10,132 sq km, is
in interior Oman, and has previously been explored by a number of companies, with gas and
condensate shows, while the small Block 65, covering 1,230 sq km, formerly operated by Oman
Oil Company Exploration and Production, has produced oil and gas shows, it added.

UAE: Jafza Dubai welcomes first photovoltaic solar panel plant
Times News Service
Global trade enabler DP World’s Jebel Ali Free Zone (Jafza) has welcomed Maysun Solar, the
first photovoltaic panel producer to set up a manufacturing facility in the region’s leading free
zone.
Maysun Solar currently manufactures 5,000 solar panels per month with the capacity to generate
40 megawatts of electricity.
The establishment of the facility follows DP World's ongoing solar energy project in Jafza and the
Mina Rashid Port involving the installation of 88,000 roof-top solar panels as part of its efforts to
reduce carbon emissions.
“The history of the UAE has been shaped by the vision of its leaders. This project represents
another step towards transforming this vision into reality and integrating with the DP World Solar
Programme, the largest and most ambitious roof-top solar energy project in the Middle East,” said
Sultan Ahmed bin Sulayem, group chairman and CEO, DP World.
"DP World fully supports the Shams Dubai initiative to promote the use of clean and renewable
energy sources, and our Solar Programme is in line with the Dubai Integrated Energy 2030 and
Dubai Clean Energy 2050 initiatives, as well as with the UAE Vision 2021 and the Dubai 2021
Plan,” he added.
DP World is committed to supporting sustainable business activities and building a green
economy for future generations through such programmes and by providing an ideal investment
environment that encourages renewable energy companies to innovate, research and develop, he
further elaborated.
Maysun Solar plans to raise its production capacity to 200 megawatts over the next three years,
complementing DP World's efforts to support the Dubai government’s plan to make the emirate a
world leader in alternative energy sources.
"We intend to transfer all our operations and investments to Jafza over the coming years, raising
investment in Dubai from $5 million to $10 million, as we are currently running at full capacity and

have orders in hand for production up to November this year,” said Sai Xuezhao, general manager
of Maysun Solar.
Maysun Solar manufactures and exports its solar panels to the world under the "Made in UAE"
label, with 30 per cent of its orders coming from the European markets, especially Germany and
Poland, and 10 per cent from the Saudi market.
The company wants to expand its sales in the local market and has already obtained accreditation
from the Dubai Water and Electricity Authority to become a certified supplier of solar panels.
Xuezhao noted that the permission given to individuals and companies in Dubai to produce their
own energy and to cut down on electricity bills by installing solar panels on buildings has given a
strong boost to the solar panel industry in Dubai. “The move will stimulate cities and countries
within the region to follow the example of Dubai in the exploitation of solar energy,” he
emphasised.
Maysun Solar has received a number of international quality certificates, including the ISO
certification in quality management system and the certificate of application of European
specifications in the solar panel industry.

Saudi Sabic launches new initiative to boost local content
Sabic + NewBase
Saudi Basic Industries Corporation (Sabic) has launched a new initiative called Nusaned to
promote investments in small and medium enterprises and support the development of local
content.
Nusaned is the first initiative launched
by Sabic's Local Content and Business
Development Unit (LCBDU) formed in
early 2017, said a Saudi Gazette report.
The unit aims to facilitate Sabic become
a key enabler in the achievement of
Saudi Vision 2030. It seeks to provide
opportunities for investors, especially
young people and entrepreneurs, who
wish to develop their businesses in
innovative and leading industrial sectors.
It further aims at raising the level of
localization of industrial technologies,
creating new jobs and increasing the
volume of Saudi exports, said the report.
Sabic Chairman Dr Abdulaziz Bin Saleh Aljarbou said: "The Nusaned initiative, launched today, is
part of the efforts exerted by us to implement Saudi Vision 2030 by supporting the national
industrial sector and developing local content, allowing the national companies to become global.”
Yousuf Al-Benyan, Sabic Vice Chairman and CEO, highlighted Sabic's strategy of developing
local content, stressing the pivotal role played by the company as a global supplier of innovative
products used in many industries.
"Our global partnerships and our presence in more than 50 countries around the world help us
attract investments and bring in international expertise. This contributes to enhancing the
capabilities of local industries to compete and grow globally. Sabic also helps raise the level of
exports, achieve trade balance, and drive GDP growth," he said.
Al-Benyan added that by supporting small and medium enterprises, Sabic helps them become
competitive and break any barriers to growth, mainly in the area of exports. Sabic helps create a
local and global market for these enterprises with the aim of achieving the goals of Saudi Vision
2030, he said.
About NUSANED
In order to achieve SABIC’s localization agenda and local industry development, SABIC is initiating “Nusaned”
– its first integrated Localization Engine Nusaned (‫,)نساند‬ in Arabic, means support. Rightly so, it aims to support
investors in areas related:
SABIC opportunities available to drive investment and create local demand through
• procurement spends
• product conversion to develop downstream industry
• commercialization of SABIC patents / technologies /applications

OPEC Deal Doesn't Stop Russia From Record Oil Output in 2017
Bloomberg - Jake Rudnitsky
Russia’s oil industry continued its long-term expansion last year, with production hitting a record
even as President Vladimir Putin joined forces with OPEC to clear a global glut and lift prices.
The nation’s oil output increased to an average 10.98 million barrels a day in 2017, up 0.1 percent
from the previous year, according to data published Tuesday by the Energy Ministry’s CDU-TEK
statistics unit. That’s the ninth consecutive annual increase to the highest level since the collapse
of the Soviet Union in 1991.
Russian output has soared under Putin’s leadership, nearly doubling from 6.1 million barrels a day
in 1999. The industry’s long expansion could pause in 2018 because Russia has agreed to
another year of cuts with the Organization of Petroleum Exporting Countries. The unprecedented
period of cooperation depleted bloated fuel stockpiles and boosted prices last year, re-shaping the
global oil market and energy geopolitics.
Russia’s Agreement
Despite the cuts, Russia achieved a record because it ramped up production so rapidly the year
before. Output reached 11.23 million barrels a day in October 2016, a month before the accord
with OPEC was announced. Russia implemented its pledged 300,000 barrel-a-day supply cut
gradually, meaning output remained above 11 million barrels a day for several months in early
2017.
Russia’s allies in OPEC aren’t complaining. Brent prices climbed 18 percent last year and global
inventories have fallen. Brent rose 0.2 percent to $67 a barrel on the London-based ICE Futures Europe
exchange at 8:40 a.m. local time.
Following the November decision to extend the pact through 2018, Saudi Arabia’s Energy Minister Khalid
Al-Falih, sitting next to his Russian counterpart Alexander Novak at a press conference, said “we are
completely aligned.” Oil output in December was 10.95 million barrels a day, up 0.1 percent from November, while
exports dropped 5.3 percent to 5.24 million barrels a day, according to CDU-TEK.

Russia's Oil Friendship With China Makes Crude Costly for Europe
Europe’s set to be stuck with a higher oil bill as Russia shifts more of its supply to the Chinese oil
market.
As the world’s second-biggest economy buys more, crude shipments from Primorsk port in the
Baltic region will be cut, according to industry consultant FGE. The reduction will push up the price
of varieties available for sale to Europe. Russia is already the biggest supplier to the China, and
will probably boost exports to the country by 200,000 barrels a day in 2018 from a year earlier,
FGE said.
After a glut sparked the biggest price crash in a generation and starved Russia of oil revenues, the
nation sought to boost market share in the world’s top importer. It’s now supplanted Saudi Arabia
as the top exporter to China, even as the two producers lead efforts to shrink the global
oversupply by curbing output. A pipeline that transports crude from the East Siberia-Pacific Ocean
system has helped its mission to increase volumes.
“Russia is starting in effect immediately to shift crude exports away from Europe to China,” FGE
said in a Dec. 29 note. “While we see overall crude exports from Russia flat year-over-year in
2018, this is bullish news for the Urals price due to its lower availability, in particular from the port
of Primorsk.”
This increase in China-bound deliveries is expected to cut exports from Primorsk in January and
February, and reduce pipeline flows to Eastern Europe in March, according to FGE. Shipments of
the Urals grade from the port in January will likely fall by 160,000 barrels per day, compared with a
year ago, while supplies from Novorossiysk in the Black Sea could remain largely flat, with some
possible upside, according to the note.
The diversions have made Urals prices stronger at the end of December, compared with a month
before, according to FGE. The grade turned about 60 cents a barrel costlier relative to London’s
Brent crude, the benchmark for sales of the variety, the industry consultant said.

Oil Pipeline Flows to China
China imports the bulk of Russian oil via inland pipes and seaborne shipments from the eastern
ports of Kozmino, De-Kastri and Prigorodnoye. A second conduit between the two countries
began operations on New Year’s Day, doubling China’s ESPO crude import capacity to 30 million
tons annually, or about 600,000 barrels a day. The two lines run parallel to each other between
Mohe at the border and Daqing in northeast Heilongjiang Province.
The Asian nation has also sought to expand its energy relationship with Russia. CEFC China
Energy Co., a firm that’s grown from a small local trader to a global deal-making juggernaut, in
November sold its first cargo of Russian crude after buying a $9 billion stake in Rosneft Oil Co.
last year. The Russian energy giant will supply the Shanghai-based company with as much as
60.8 million tons, including the Urals, ESPO and Sokol grades, over five years.
Russia supplied 5.12 million tons of crude to China in November, official customs data show, the
equivalent of about 1.3 million barrels per day. It also aims to start natural gas sales via the Power
of Siberia pipeline by December 2019.

NewBase January 03 - 2018 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil Trades Near Two-Year High as U.S. Stockpiles Seen Dropping
Bloomberg + NewBase + Reuters
Oil prices were stable on Wednesday, not far off mid-2015 highs reached the previous session, as
strong demand and ongoing efforts led by OPEC and Russia to curb production tightened the
market.
U.S. West Texas Intermediate (WTI) crude futures were at $60.40 a barrel at 0141 GMT, up 3
cents from their last close, and not far off the $60.74 June 2015 high reached the previous day.
Brent crude futures - the international benchmark for oil prices - were at $66.55 a barrel, down 2
cents but still not far off the $67.29 May 2015 high from the previous day.
WTI Oil traded near the highest close in more than two years before U.S. government data
forecast to show stockpiles extended declines for a seventh week and as unrest continued in
OPEC’s third-biggest producer.
Oil price special
coverage

Futures were little changed in New York WTI near $60 a barrel after easing 5 cents on Tuesday.
Inventories probably fell by 5 million barrels last week, according to a survey before an Energy
Information Administration report on Thursday. Crude and condensate exports from Iran
remain unaffected by the turmoil that has spread across the country, Bloomberg tanker tracking
shows.
Oil last year capped a second annual advance as the Organization of Petroleum Exporting
Countries and its allies trim supply to reduce a global glut. Prices will probably trade between $40
and $60 a barrel this year, penned in by rising U.S. shale production, declining but still hearty
worldwide supplies and eroding OPEC compliance, according to Moody’s Investors Service.
“There’s still upside to the price,” said Daniel Hynes, an analyst at Australia & New Zealand
Banking Group Ltd. in Sydney. “The market is definitely getting a little more positive about supply
and demand dynamics. It’s highly unlikely we’ll see any impact on output from the Iranian protests
but it does raise market awareness of rising geopolitical risks.”
West Texas Intermediate for February delivery was at $60.34 a barrel on the New York Mercantile
Exchange, down 3 cents, at 7:40 a.m. in London. Total volume traded was about 45 percent
below the 100-day average. Prices closed at $60.42 on Friday, the highest level since June 2015.
Brent for March settlement slid 9 cents to $66.48 a barrel on the London-based ICE Futures
Europe exchange after losing 30 cents on Tuesday. The global benchmark crude traded at a
premium of $6.16 to March WTI.
Unrest in Iran began Dec. 28 with a rally against rising prices and the government’s handling of
the economy, before turning into a wider protest against the political establishment. The OPEC
member pumped 3.82 million barrels a day in November, according to data compiled by
Bloomberg.

WTI Rises Toward $61 After Yearly Gains as U.S. Drillers Pause
After capping its second annual gain, oil started 2018 by advancing toward $61 as U.S. drilling
activity remained at a standstill following a slip in production and as protests continued in Iran.
Futures climbed 0.4 percent in New York after a 3.3 percent increase last week. U.S. drillers
targeting crude kept the rig count unchanged for a second week at 747, Baker Hughes said
Friday. The death toll during the unrest in Iran, OPEC’s third-largest producer, rose as security
forces clashed with demonstrators rallying in a rare show of displeasure with the country’s
leaders.
Oil in 2017 extended its recovery from a low point nearly two years ago as the Organization of
Petroleum Exporting Countries and its allies trimmed supply to reduce a global glut. U.S. crude
output fell through Dec. 22 for the first time since mid-October, slipping from a weekly record after
a nine-week expansion.
“There is some momentum for oil at the moment and that could continue,” said Ric Spooner, a
Sydney-based analyst at CMC Markets. “There appears to be a developing consensus that the
increase in U.S. shale production this year may not be as significant as many had forecast.”
West Texas Intermediate for February delivery was at $60.63 a barrel on the New York Mercantile
Exchange, up 21 cents, at 7:40 a.m. in London. Total volume traded was about 17 percent above
the 100-day average. Prices added 58 cents to $60.42 on Friday, ending the year up more than
12 percent.
Brent for March settlement gained 31 cents, or 0.5 percent, to $67.18 a barrel on the London-
based ICE Futures Europe exchange. Front-month prices rose about 18 percent last year for a
second annual increase. The global benchmark crude traded at a premium of $6.52 to March WTI.
Though the Iranian unrest that began Thursday in the northeastern city of Mashhad initially targeted the
government’s handling of the economy, the focus expanded within a day to the religious establishment and
state security forces. Accounts varied, but as many as a dozen people may have died.

NewBase Special Coverage
News Agencies News Release January 03-2017
Oil's Dream to Expand in Plastics Dims as Coke Turns to Plants
Bloomberg
Use of bioplastics made from sugar cane, wood and corn will grow at least 50 percent in the next
five years, according to the European Bioplastics Association in Berlin, whose members
include Cargill Inc. and Mitsubishi Chemical Holdings Corp.
German chemical giant BASF SE and the Finnish paper maker Stora Enso Oyj have stepped into
the business to meet demand from the likes of Coca-Cola Co. to Lego A/S.
“Biochemicals and bioplastics could erode a portion of oil demand, much like recycling can erode
overall virgin plastics demand,” said Pieterjan Van Uytvanck, a senior consultant at Wood
Mackenzie, a research group focused on the oil industry. “It will become a larger portion of the
supply.”
Moviegoers famously learned in the 1967 film “The Graduate” that “there’s a great future in
plastics.” Oil companies make ethylene and other basic building blocks for plastic. They’ve been
eyeing that market for growth as electric cars threaten to trim demand for gasoline.
Plastic material’s ubiquity in packaging has left the world literally swimming in disused bottles,
bags and wraps. That’s starting to worry both environmentalists and the companies that use it the
most. There’ll be more plastic than fish in the world’s oceans by 2050, according to the Ellen
MacArthur Foundation, and those materials are finding their way into the food chain.
Bioplastics currently make up about 1 percent of the plastics market, according the industry’s
organization in Europe. Top producers include Sao Paulo-based Braskem SA, NatureWorks
LLC in the U.S. and Novamont SpA of Italy.

“Attitudes are evolving,” said David Eyton, the head of technology at BP Plc. “The question that
faces the petrochemicals industry that has yet to really be answered is, ‘How are people going to
deal with some of the environmental impacts of petrochemicals? Particularly plastics, which are a
growing concern.’”
The International Energy Agency forecasts that growth in the plastics market should boost
petroleum demand. It takes about 8.5 barrels of oil-derived naphtha to produce the a ton of
ethylene needed to manufacture 160,000 plastic bags, according to Bloomberg Intelligence
calculations.
“Petrochemicals will take center stage in driving oil demand,” said IEA analyst Tae-Yoon Kim.
“This is why oil majors are very much focusing on petrochemicals.”
Saudi Arabian Oil Co., Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA are expanding their
plastic footprints, according to the IEA.
“We’re expecting petrochemicals to grow 4 percent per year,” said Ahmad Al Khowaiter, chief
technology officer at Saudi Aramco. “That’s an opportunity we’re really trying to leverage.”
Alternatives to traditional plastics are appearing:

The new technology will have to compete against massive refineries that convert hundreds of
thousands of barrels of every day into plastics.
“Alternative raw materials must be competitive,” Stora Enso’s Chief Financial Officer Seppo Parvi
said in an interview in London, anticipating eventual price parity with crude plastics. “I’m confident
we’ll be able to do it.”
Demand for bioplastics also needs to grow among retailers and consumers, according to Coke.
“It won’t ever work if there’s just one big consumer company like a Coca-Cola trying to drive
suppliers,” said Ben Jordan, head of environmental policy at Coca-Cola. “You need more demand
out there in industry.”

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 28 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation, operation & maintenance agreements along with many MOUs for the
local authorities. He has become a reference for many of the Oil & Gas Conferences held in the
UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase January 2018 K. Al Awadi

New base 03 january 2018 energy news issue 1122 by khaled al awadi

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New base 03 january 2018 energy news issue 1122 by khaled al awadi