New base energy news 02 february 2021 issue no 1402 senior editor eng- khaled al awadi-compressed

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NewBase Energy News 02 February 2021 - Issue No. 1402 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Utico announces AED 3.0B IPO primary listing in 2021
TradeArabia + NewBase
Utico, the Middle East’s leading full service utility and the only private water and power company in
the UAE, today said it intends to list the company this year through an IPO. In a statement, Utico
said its advisors were in negotiations to list the company through an AED3 billion ($816.73 million)
valuation IPO in Dubai later this year.
“It is a coincidence that the government’s decree that all private joint stock companies and
international private companies which derive greater than 50% of their profits from the UAE to be
listed in the local securities exchanges, and our own intent to list in the UAE is pleasantly in line with
the vision of the country’s leadership," said Richard Menezes, CEO of Utico, ( pictured in frame).
Utico, being a large investor and service provider in the UAE, has a firm footing in the society, and
it now intends to build on this by improving its offerings and bringing more products and services to
the consumers and customers in line with its full spectrum circular economy sustainability business
model, the statement said, adding that Utico’s ESG metrics is one of the highest in the world in
many aspects.
Utico intends to list 20-30% of the company, Menezes said, and this will be of great value to the
public investors offering forward multiples in the range of about 11. Investors could expect a stable
incremental dividend increase by 8 to 10% thereafter, which with current outlook can beat forward
market metrics, he said. The shareholders of Utico will finalise the dilution after due consultation
with advisors and market regulators, he added.

Utico said it being the lowest cost reliable quality producer serving 5 of the 6 emirates in the UAE,
and having lately been awarded Dubai’s largest Hassyan IWP desalination project for 35 years
supply, as well as winning a water supply project in Oman with the lowest IWP tariff in the Sultanate,
makes it a desirable stock to own.
Utico currently serves a population of about 200,000 and holds a market share of 20% in the areas
it serves.
Utico hopes to improve its value proposition globally contributing to the drinking water and water
treatment solutions worldwide. Utico is also the Largest Private Full service Utility provider in the
region and has a current presence in 7 countries in the Middle East, the company said.
About UTICO:
Utico, the largest private Utility Provider in UAE, is one of the 27 companies forming part of the UAE based RMB Group, with a conglomerate turnover
exceeding AED 2 Billion. Utico is a reputed private utility Developer, Investor and Owner of Water & Power Plants, with Operations including
Generation, Transmission, Distribution, Billing, Collection & Customer Services.
Incorporated in 2005, Utico has grown into generating and meeting the needs of power and water to an area of 300 sq. km with a population of over
150,000.
Utico is also one of the leading green companies in the UAE, as the first company to have obtained ISO 50001 certification for Energy management
from Quality Austria in MENA region. We are also an ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 certified organization.
Core Sectors we engage in:
 Water Production
 Power Production
 Waste Water Treatment
 Solar Energy Solutions and EPC & Investment Projects
The company is investing over US$ 300 million to set up a 300MW coal based power plant with carbon capture – The First in Middle East.The six
core values of the company include total customer satisfaction, full service utility, being environmental friendly, team work, innovation and social
responsibility.
UTICO Commissions Largest Trans-Emirate Pipeline In The
UAE
$100 million pipeline has a 50 million gallons per day peak carrying
capacity
Dec 18, 2018

Saudi Chemical Giant Sabic Sees Vaccinations Boosting Income
Bloomberg - Paul Wallace , Reema Al Othman , and Matthew Martin
Chemicals maker Saudi Basic Industries Corp. expects sales and earnings to increase this year
after it beat analysts’ estimates by making a profit in 2020.
The Riyadh-based firm, controlled by Saudi Aramco, said it sees the global rollout of coronavirus
vaccines leading to a 2% to 5% gain in revenue this year. Pretax income will be “moderately higher”
than in 2020, while capital expenditure will be similar, Sabic said in a results statement on Sunday.
Sabic earned net income of 40 million riyals ($10.7 million) in 2020, down sharply from 5.2 billion
riyals in 2019. Still, analysts expected a loss of almost 300 million riyals, according to the
median estimate in a Bloomberg survey, after the pandemic caused demand for chemicals products
to sink.
Sabic’s net income between October and December was 2.2 billion riyals, more than double the
figure for the third quarter.
“The fourth quarter benefited from sustained economic recovery,” said Chief Executive Officer
Yousef Al-Benyan. “Distributing competitive dividends to our shareholders continues to be
paramount and this is supported by our firm commitment to maintaining capital discipline, as well
as our ability to uphold a strong balance sheet and credit rating.”
In December, the company’s board announced a dividend of 1.5 riyals per share for the second half
of 2020, unchanged from the first half. Sabic’s stock fell 1.8% to 100.80 riyals on Sunday, reversing
its gains this year. It’s still up 63% since its trough in March of 62 riyals.
The company is seeking to list its specialty unit through an initial public offering and has shortlisted
banks including Citigroup Inc. and Morgan Stanley for roles on the deal, Bloomberg reported this
month.
The unit generates about $2 billion of revenue annually. Its establishment as a standalone entity
last year was a “major milestone that should support the company’s ambitions to be a leader in the
specialty chemicals industry,” Sabic said.

Aramco bought 70% of Sabic last year from the Saudi sovereign wealth fund for $69 billion. The
takeover should create total synergies of about $3 to $4 billion, with Sabic’s portion being $1.5 to
1.8 billion of that, Al-Benyan said in a press conference.
“At this point, we don’t have any plans to issue any bonds or tap the debt market,” he said, adding
that Sabic will continue trying to grow in Asia and the U.S.
NOTE: the company is involved in Aramco’s efforts to produce blue hydrogen, which is often
transported as ammonia. Blue hydrogen is made from natural gas in a process that captures the
carbon emissions, Sabic aims to run more plants fully on renewable energy

Oman:BP sells 20% stake in oil Block 61 to Thailand's PTTEP
Reuters + NewBase
Oil major BP Plc agreed on Monday to sell a 20% stake in Oman’s Block 61 to Thailand’s PTT
Exploration and Production for $2.6 billion. The London-listed firm said it would continue as an
operator of the block, which contains a large tight -gas development in the Middle East, with a 40%
interest.
“We are committed to BP’s business in Oman – this agreement allows us to remain at the heart of
this world-class development while also making important progress in our global divestment
programme,” said BP’s Chief Executive Bernard Looney.
Block 61 already had two phases of development - Khazzan tight gas project, one of the largest
upstream projects in the small Gulf state, and Ghazeer project which began production in October,
BP said.
Timeline:
 2007: production sharing agreement for Block 61 Khazzan field signed.
 2007-2013: appraisal confirmed existence of significant tight gas resources.
 2013: first phase of field development, Khazzan, sanctioned.
 2016: bp signed an agreement with the Government of the Sultanate of Oman to amend the
Block 61 Exploration and Production Sharing Agreement (EPSA). This added a further

1,150km2 to the south and west of the original 2,800km2 Block 61 development, allowing a
second phase of development, Ghazeer.
 September 2017: first gas from Block 61 Phase 1 Khazzan project delivered ahead of
schedule.
 April 2018: second phase of field development, Ghazeer, sanctioned.
 January 2019: bp and ENI sign heads of agreement with the Government of the Sultanate of
Oman to work jointly towards a significant exploration opportunity in Block 77. Six months
later an EPSA was signed.
 March 2020: royal decree permits exploration activities in Block 77 to progress, including
seismic data processing and the drilling of one exploration well within the next three years.
 October 2020: first gas from Ghazeer delivered ahead of schedule.

Oman: 2nd well starts production in Oman’s Masirah Oil Block
Oman Observer - Conrad Prabhu
Drilling uptick: Third development well spudded on Yumna field in Block 50
Ramping up efforts to unlock the hydrocarbon potential of Block 50 — the first producing block off
Oman’s east coast, Masirah Oil Limited (MOL) brought a second development well targeting the
Yumna Field into production, the latter announced on Monday.
Yumna-2 began producing on January 23, less than six weeks after it was spudded by Shelf
Drilling’s Tenacious jack-up rig last December. Output from the development well averages 9,000
barrels/day of dry oil, supplementing flows from Yumna-1 which was producing at the rate 8,000
bpd (as reported by the company last July).
The uptick in drilling activity follows a decision by Oman’s Ministry of Energy and Minerals last July
to approve MOL’s Field Development Plan for the Yumna Field. On its heels came MOL’s
Declaration of Commerciality, signalling its intent to fully develop the Yumna reservoir, as well as
explore for hydrocarbons elsewhere in the Block.
Meanwhile, MOL, which has a 100 per cent interest in Block 50 and is the operator as well, continues
to make headway in the drilling of a third production well. Yumna-3 was spudded last month by the
Tenacious jack-up rig.
Upon completion of the drilling of the well, the jack-up rig will be relocated to the site of a new
prospect, dubbed ‘Zakhera’, where an exploration well will be drilled targeting a structure deemed
similar to the Yumna Field.
At the same time, to cater to the new crude oil volumes flowing from the Yumna reservoir,
MOL has begun upgrading the production facilities of its Mobile Offshore Production Unit (MOPU)
deployed at site. The processing capacity of the unit is being doubled to handle the additional
volumes anticipated from all three Yumna production wells.
The upgrade, targeted for completion before the end of Q1 2021, will boost the mobile production
unit’s processing capacity to 30,000 bpd, according to a top official of Rex International, which owns
a majority stake in MOL.

“We are very pleased that the Yumna 2 well was developed successfully and is now already
producing 9,000 bpd’’, said Dan Broström, Executive Chairman of Rex International, a Singapore-
based oilfield technology services firm.
“When Yumna 1 resumes production and the new Yumna 3 is completed, we are looking forward
to steady production from the three Yumna wells. We are therefore in the process of upgrading the
present maximum liquid processing capacity to handle up to 30,000 bpd. We will keep the market
updated as soon as we have the results from Yumna 3 and the Zakhera exploration well’’, he added
in a statement.
Masirah Oil Limited is majority owned by Rex’s local subsidiary Rex Oman Ltd (86.37 per cent) with
minority stakes also held by Petroci, the National Oil Company of the Ivory Coast and Schroder &
Co Banque SA.
ABOUT & Overview
Masirah Oil Ltd (“MOL”) holds 100 per cent of the Block 50 Oman, an approximately 17,000 sq km
offshore concession located in Gulf of Masirah, east of Oman. First oil was achieved in Block 50 in
February 2020 and the approval of Field Development Plan for the Yumna Field and the award of
Declaration of Commerciality ("DOC") were obtained on 12 July 2020. The DOC will enable MOL
to fully develop the Yumna Field while continuing to explore the rest of Block 50 Oman.
MOL is a subsidiary of Rex International Holding Ltd (“Rex”), which holds an effective interest of
86.37 per cent through its indirect wholly-owned subsidiary Rex Oman Ltd. Other shareholders of
MOL include Schroder & Co Banque S.A. at 8.82 per cent and PETROCI, the national oil
company of Cote D’Ivoire, at 1.83 percent.
About Rex
Rex is an oil exploration and production company listed on Singapore
Exchange Securities Trading Limited’s Catalist Board. The Company de-risks
its portfolio of exploration and development assets using its proprietary liquid
hydrocarbon indicator Rex Virtual Drilling technology. Rex is active in Oman and Norway through
its subsidiaries Masirah Oil Ltd and Lime Petroleum AS respectively.
All percentages represent effective equity interest in significant and core entities held by the Group as at 9 October 2020.

Iraq Exports Signal That It Missed Target to Lower Oil Output
Bloomberg
Iraq’s crude oil exports were nearly unchanged in January, meaning the nation may have failed to
meet its pledge to cut overall output to the lowest level in six years.
OPEC’s biggest producer after Saudi Arabia exported 3.24 million barrels a day in January, which
compares with December’s figure of 3.27 million, according to Bloomberg tanker tracking data. That
would have left the Arab nation little room to meet its output target of just 3.6 million barrels.
Iraq can consume as much as 650,000 barrels each day in its refineries and often uses oil to run
power plants too. Last month, its total daily production came to 3.88 million barrels. Iraq pledges to
cut output to 3.6m b/d to compensate for past OPEC breach
The Organization of Petroleum Exporting Countries and its partners such as Russia -- an alliance
known as OPEC+ -- have slashed production since last May in a bid to prop up oil prices in the face
of the coronavirus pandemic.
Saudi Arabia criticized Iraq and other members including Nigeria for pumping above their caps and
called on them to make amends. Baghdad said the cut to 3.6 million barrels daily, the lowest level
since early 2015, would compensate OPEC+ for when it pumped too much.
Riyadh bolstered prices in early January when it announced a unilateral cut of 1 million barrels a
day for February and March. OPEC+’s Joint Ministerial Monitoring Committee will meet on
Wednesday to review production levels and discuss the group’s strategy. It’s unlikely to recommend
any policy changes ahead of next month’s full OPEC+ meeting.
Crude sales are vital to support government spending in cash-strapped OPEC members such as
Iraq. That need to export and raise revenue is often an obstacle to getting the them to abide by their
quotas.
Iraq’s state oil marketer SOMO on Monday said it had exported 2.87 million barrels daily last month
from fields under its control, which tallies with Bloomberg data. The figure excludes shipments from
the semi-autonomous Kurdish region in the country’s north.

Libya Oil Guards Set New Salary Deadline as Exports Risk Lingers
Bloomberg + NewBase
Guards protecting Libya’s oil installations gave the country’s government a new deadline to pay
overdue salaries at two of the nation’s main crude-export terminals, maintaining a lingering threat
to the conflict-ridden country’s shipments just months after they revived.
Guards on strike at Ras Lanuf and Es Sider, the country’s largest and third-largest oil ports, gave
the government 10 days from Thursday to pay the salaries, Mansour Latoush, the head of the
protection unit of the Petroleum Facilities Guard at the two ports, said. The previous deadline was
Jan. 24.
“The operations at the port were going as normal since the guards announced the strike,” Latoush
said, adding that recent disruptions have been weather-related.
The PFG will allow shipments from both facilities to continue until the deadline passes, but Latoush
didn’t elaborate on what might happen if payments aren’t made by then. Tankers should load at
both ports on Friday.
The north African country’s production and exports surged late last year as a fragile peace broke
out in a nation that’s been riven by conflict for extended periods of time since the ouster of Muammar
Qaddafi.
The guards, who are meant to be neutral in the tensions, have occasionally disrupted exports
before. Libya’s output rebounded to 1.3 million barrels a day this week after a major pipeline was
fixed.
Libya’s resurgent production posed a dilemma for other oil producing nations who are participating
in a pact to curb crude supplies because of a demand slump caused by Covid-19.

NewBase February 02-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Flirts With Brent $57 Aided by Drop in Dollar Amid Demand Optimism
NewBase + Bloomberg
Oil prices rose around 1% on Tuesday after major producers showed they were cutting crude output
in line with their commitments on restraint, supporting a market thrown out of kilter by weak demand
during the coronavirus pandemic.
Brent crude was up 62 cents, or 1.1%, at $56.97 a barrel by 7.54 GMT, while U.S. oil gained 62
cents, or 1.16%, to $54.17 a barrel. Both contracts rose more than 2% in the previous session.
WTI Oil rose past $54 a barrel with help from a falling dollar after jumping the most in three weeks
on optimism over the demand outlook.
Oil price special
coverage

Futures in New York headed for the highest close in almost a year after being swept up with a rally in
U.S. stocks to rise 2.6% Monday. Saudi Aramco said it sees demand returning to pre-virus levels
later this year. Royal Dutch Shell Plc raided the North Sea market, buying the most benchmark-
grade cargoes in a single day in 10 years in the S&P Global Platts pricing window. A weakening
dollar boosts the appeal of commodities that are priced in the currency.
Crude’s futures curve kept strengthening, suggesting the large stockpiles built up last year are
shrinking fast and will continue to do so. Brent’s prompt timespread is 27 cents a barrel in
backwardation, a bullish market structure where near-dated prices are more expensive than later-
dated ones.
Oil still faces a challenging short-term demand environment amid concern Covid-19’s new variants
will lead to more lockdowns and as vaccine rollouts don’t go as smoothly as anticipated in some
countries. A recent resurgence of the virus in Asia is setting back a fragile recovery in transport
fuels.
“Demand sentiment appears to have almost done a U-turn, no doubt helped in large part by a
sustained drop in Covid-19 cases as well as deaths in the U.S.,” said Vandana Hari, founder of
consultancy Vanda Insights in Singapore. “That has eclipsed last week’s bearishness over the EU’s
vaccine troubles.”
There could be some relief for Asian fuel demand, however. Japan should look to reinstate a
domestic travel incentive program as soon as March, according to a senior official from the ruling
Liberal Democratic Party.
OPEC may also be adding less supply into the market than expected. While the group raised crude
production as planned last month, the monthly change was barely two-thirds of the scheduled
amount as increases by OPEC’s Persian Gulf exporters were offset by disruptions in Nigeria and
Libya.

Iraq’s crude oil exports, meanwhile, were nearly unchanged in January, meaning the nation may
have failed to meet its pledge to cut overall output to the lowest level in six years.
OTHER OIL-MARKET NEWS:
OPEC and its allies can celebrate their success in steadying world oil markets when they
gather this week. But the coalition will soon be faced with some tough choices.
Exxon Mobil Corp. pledged to spend $3 billion on low-emission technologies through 2025
to address investor concerns over its environmental record. The trouble is, its latest plan
offers little in the way of anything new.
BP Plc will sell a stake in an Omani gas block to Thailand’s national energy firm for $2.6
billion, part of a push to divest billions of dollars of assets and focus more on renewable
energy.
BP reports full-year net loss of $5.7 billion after ‘brutal’ year, BP also posted fourth-
quarter net profit of $115 million, missing analyst expectations of $285.5 million.

NewBase Special Coverage
The Energy world – Feb-02 -2021
Saudi Arabia's Oil Fears Look Well Founded
By: Julian Lee
It’s starting to look like Saudi Arabia’s concerns over the oil demand recovery were well
founded.
At the start of the month, the joint leader of the OPEC+ group of oil-producing countries
announced a surprise output cut of 1 million barrels a day for February and March. Its co-
chair, Russia, pushing for restraints to be eased, was granted a small output increase in each
of those two months.
When Saudi Energy Minister Prince Abdulaziz Bin Salman made the unilateral decision to
cut output — keeping the idea from fellow OPEC+ members to prevent leaks — he pinned
it on fears that the recovery in oil demand was not as strong as it appeared. That appears to
have been wise.
Although cold weather across northern Asia has boosted demand for heating fuels, there
are worrying signs that the recovery in transport fuel has not only ground to a halt, but has
actually gone into reverse in some key areas.
Grounded
Commercial flights are running at less than 60% of comparable 2019 levels
Rising Covid-19 cases in northern China have led to the imposition of restrictions to
discourage travel for the week-long Spring Festival holiday. All travelers are now required
to present a negative Covid-19 test result and holders of air tickets can get refunded or
reschedule their flights for free.

In the last week of January, flight departures from Chinese airports were about half what
they were on average in December, according to data collated by my colleagues at
Bloomberg NEF.
And this is having an impact on global flight numbers. Worldwide commercial flights have
fallen back to less than 60% of comparable 2019 levels, driven not just by the Chinese
restrictions, but also by tougher measures introduced by the U.K. and lockdowns elsewhere
in Europe.
It’s not just air travel that’s being hit either. Private car use is also falling again in some of
the major cities that were proving bright spots for recovery.
Traffic delays on Beijing streets have fallen in recent weeks, dropping from elevated post-
lockdown highs to below average 2019 levels. They’re unlikely to fall as low as they did back
in Feb. 2020, when the first lockdowns were put in place, but delays during peak hours are
down by about a third from the highs they reached in September, while those during off-
peak hours have fallen by two-thirds.
Beijing Gets Quieter
Traffic queues in Beijing have eased amid new virus cases, but they're nowhere near lockdown levels

The morning rush in Beijing usually reaches its peak around 8 a.m. and delays at that time
of day are now their shortest since June, excluding public holidays.
Quick Commute
Peak morning traffic in Beijing is the lightest it's been since June
Source: TomTom Traffic Index
Note: Additional time taken for a journey that would last an hour in uncongested conditions.
That may be good news for drivers but these are unwelcome developments for a recovery
in oil demand, which still requires the mass inoculation of people around the world. That
will eventually come, but it’s not here yet.
Oil markets enjoyed a rush of exuberance when the first successful drug trials were reported
late last year and have received a further boost from expectations of a big U.S. stimulus
package from President Joe Biden. But physical markets, where oil is traded for immediate
delivery, have lagged behind those for future delivery, which are already looking forward to
a resumption of mass travel.
Saudi Arabia’s eyes were firmly on the here and now when it decided to slash its production for
two months. But the cost of the kingdom’s “gift” is much smaller than you might think and, as Prince
Abdulaziz noted, even if demand turns out stronger than expected, it will simply hasten the
draining of excess stockpiles. Whatever happens, it’ll be a win for the kingdom.
Julian Lee is an oil strategist for Bloomberg First Word. Previously he worked as a senior analyst at the Centre for Global Energy Studies.

NewBase Energy News 02 February 2021 - Issue No. 1402 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. 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 the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
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for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2021 K. Al Awadi

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New base energy news 02 february 2021 issue no 1402 senior editor eng- khaled al awadi-compressed