New base special 16 october 2014

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NewBase 16 October 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oman’s projects opportunities at $26bn by 2015
Saudi Gazette + NewBase
Oman’s projects market is set to receive a massive boost as the Sultanate ramps up its
investment in turnkey projects over the next few years with 2015 witnessing an influx of up to $26
billion in capital expenditure and pipeline opportunities including the latest Duqm developments
valued at $12.5 billion and fisheries harbors valued at $13.6 billion respectively.
As much as $145 billion worth of projects are currently under way or will be awarded in Oman,
according to MEED projects, the region’s leading projects tracker. Among the projects at the
forefront of Oman’s aggressive expansion program are $26 billion Khazzan & Makarem Fields
projects, Oman’s Suwaiq IWPP and Haima Solar Thermal Hybrid Power Plan.
Furthermore, $13 billion are to be invested in the Takamul downstream project and ORPIC’s Liwa
Plastic Project Initiative with another $12 billion dedicated solely to the development of Duqm as
the new energy, industrial, residential and tourism and leisure hub in Oman.
As such, these and other project opportunities will be the focus of the upcoming MEED Oman
Projects Forum 2014, which is held with the support of the Ministry of Commerce and Industry and
puts an emphasis on In-Country Value initiatives and the associated requirements for those
wishing to capture a share of what is quickly becoming a lucrative and astounding positive
economic movement within the Sultanate of Oman.
The Forum, to be held on Oct. 27-29, 2014 at the Al Bustan Palace Muscat, is designed to

provide attendees with exclusive and valuable insights on how to capture a share of Oman’s mega
projects by adhering to in-country value requirements.
Dr Ali Al Sunaidy, Minister of Commerce and Industry, Oman will deliver the keynote address
highlighting the milestones of the country’s economic progress and identifying the priority sectors
for investment in the next few years. In addition his address will outline the key initiatives to
promote In-Country Value across Oman’s sectors as well as spending forecasted for 2015 and
associated priority areas.
Key government agencies will present a snapshot of opportunities across Oman’s high growth
sectors as well as the strategic roadmaps for the development of each sector. The first day of the
Forum will dedicate considerable focus during the morning to analyzing the macroeconomic
trends and the drivers of the Omani economy as well as a thorough review of the expected
outlook for Oman’s economy. Over 50 speakers including government representatives, project
owners, engineering consultants, contractors, and financiers will give insight on the latest project
opportunities across Oman’s infrastructure, transport, oil, gas, power, water and heavy industry
sectors, and the critical procurement models to win these.
“MEED’s Oman Projects Forum 2014 presents a detailed overview of the sultanate’s economy,
the priority sectors and budget for the coming years. More importantly, it provides an insight into
the Omani planned budget and a sector-by-sector analysis by value, stages and timelines. As
such it is an important meeting for those interested in gaining a foothold in or winning a bigger
share of Oman’s projects,” said Edmund O’ Sullivan, Chairman, MEED Events, organizers of the
forum.
Projects valued $500m andmore under execution or planned in Oman to 2022 ($m) Project Budget ($m)
1 Duqm new town 20,000
2 Oman national railway 15,600
3 Duqm refinery & petrochemical complex 15,000
4 Khazzan & Makarem fields 15,000
5 Muscat & Salalah international airport expansion 5,200
6 Gas-based steel plant 3,000
7 The Wave development 3,000
8 Batinah expressway 2,600
9 Sohar Aluminium smelter expansion 2,400
10 Sohar refinery expansion project 2,300
11 Duqm IWPP 2,000
12 Haima Solar thermal hybrid power plant 2,000
13 Oman convention and exhibition centre 1,800
14 Masirah island causeway 1,500
15Sur IPP 1,500
16 Sultan Qaboos medical city complex 1,480
17 Batinah coastal road project 1,312
18 Bidbid to Sur dual carriageway 1,156
19 Yibal Khuff sour development project 1,050
20 Development of Block 60 (Abu Butabul) 1,000
Source: MEED Projects, October 2013

UAE asks oilfield bidders for two-month offer extension
Reuters + NewBase
The UAE has asked bidders for its biggest onshore oilfields to extend their offers by two months
until December 31, sources familiar with the matter said, as the country considers bringing in
Asian firms after decades-long partnerships with western majors.
Nine Asian and western firms have bid for stakes in the Abu Dhabi Company for Onshore Oil
Operations (Adco) concession after a deal with western oil majors that dates back to the 1970s
expired in January.
State-run Abu Dhabi National Oil Company (Adnoc) has asked the nine bidding companies to
extend offers that were due to expire around October 22 until December 21, three sources said.
Industry observers say any changes in the concessions would be made at the highest decision-
making body for the oil and gas industry, the Supreme Petroleum Council. They say there is a
difference in opinion inside the SPC over whether to stick with western companies, or make room
for newcomers from Asia, while some would like to see Adnoc operating the fields alone.

Adnoc could not be reached for comment and none of the nine companies would comment. One
source said however that it was unlikely any company would refuse Adco's request. "Is any
company going to say 'no our bids have expired'? The answer is no. No company is going to go
through this effort and then say our offers are not valid anymore," the source said.
ExxonMobil, Royal Dutch Shell, Total and BP – have each held 9.5 per cent equity stakes in the
Adco concession since the 1970s. Portugal's Partex had a 2 per cent stake, and the rest was held
by Adnoc.
After the deal expired in January, Adnoc took 100 per cent of the concession. Shell, Total and BP
have made their new bids, which are being evaluated by the government of Abu Dhabi, the capital
of the UAE, while Exxon has decided against bidding, sources have told Reuters.
US firm Occidental Petroleum, Italy's Eni, China National Petroleum Corp (CNPC), Norway's
Statoil, Japan's Inpex and Korea National Oil Corp have also bid for the new deal. Each company
submitted two proposals last year - one for a 5 per cent stake and another for a 10 per cent stake,
with a one year validity, the first source said.
Oil production facilities – Bu Hasa , Total

Solo Oil Acquires Interest in Kiliwani Gas Field in Tanzania
Solo Oil + NewBase
Solo Oil on Tuesday announced that it has signed an agreement to acquire an initial 6.5% interest
in Kiliwani North Development License in Tanzania from Ndovu Resources, a wholly-owned
subsidiary of Aminex, for
$3.5 million.
The UK based company
also has a 45 day option
to increase its interest in
the license by a further
6.5 percent to 13 percent.
The license contains
Kiliwani North 1
well which is expected to
produce at an
approximate rate of 20
million cubic feet per day
(mmscfd) in first half
2015.
“This agreement, when
closed, will represent a
major landmark for Solo
as it will give the
company its first revenue
from Tanzania,” Solo
said. According to Solo,
independently verified
gross in-place unrisked
mean gas resources of
the well, computed by
Isis Petroleum
Consultants, are
estimated as 45 billion
cubic feet (bcf).
Construction of the 2 km long pipeline from KN1 to the new Songo Songo gas processing plant
has now commenced and is expected to be completed in early 2015.
The Songo Songo gas processing plant is connected with the newly constructed 36-inch gas
pipeline from Mtwara in the south of Tanzania to Dar es Salaam, the national capital, in the north,
and this provides an immediate route to monetise the Kiliwani North gas production.
Ndovu is in advanced negotiations for a gas sales agreement with the Tanzanian authorities and
these negotiations are expected to be satisfactorily concluded in the near future, Solo stated.
Solo and Aminex are already partners in the Ruvuma Production Sharing Contract in southern
Tanzania, with respectively 25 percent and 75 percent working interests.

Senegal to award two offshore oil licences by year-end
Reuters + NewBase
Senegal will award exploration licences for two offshore oil blocks by the end of the year, the
head of state-run hydrocarbons corporation Petrosen said on Wednesday.
The announcement comes days after Cairn Energy announced it had made an offshore oil
discovery that Petrosen said was one of the biggest in Senegal's history. 'We already have
proposals.
We are evaluating the best for the state of Senegal,' Petrosen Director General Mamadou Faye
said of the two new northern offshore blocks. Faye would not give the names of the firms who
had shown interest in the new licences. He said Petrosen will look for funds to explore a third
block for itself.
Firms have explored for oil offshore and onshore in Senegal for decades but none of the finds
have been commercially viable. Last week, Petrosen signed a $400 million 'farm-in' agreement
with Kosmos Energy for a 60 percent stake in the Cayar and St. Louis offshore blocks.
See: Kosmos to buy into Senegal offshore blocks for $400 million

Cairn owns a 40 percent interest in three-block joint venture in which ConocoPhillips has 35
percent, FAR Ltd 15 percent and Petrosen 10 percent. Speaking of Cairn's announcement last
week, Faye said.
'This is a real discovery. It is not fiction. It is one of the biggest oil finds ever in Senegal.' Cairn
and Petrosen estimate the deep Sangomar offshore holds 250 million proven barrels and 2.5
billion probable barrels. 'Evaluations of the discovery are ongoing with the objective of etermining
the extent of deposit and elaborating a development plan for production,' Faye said.
Senegal: stable & democratic
Senegal is considered one of Africa’s most politically and
economically stable countries and hosts some of the best
transportation, telecommunications and communication
infrastructure in West Africa. It has been a functioning
democracy since independence from France in 1960 and
enjoys free and fair elections. Contract terms for oil and gas
exploration and production are among the best in the world.

South Africa's Zuma outlines ambitious oil exploration plans
Source: Reuters+ NewBase
South African President Jacob Zuma outlined ambitious plans on Wednesday for oil and gas
exploration in coastal waters that he said could contain as much as 9 billion barrels of crude and
vast quantities of natural gas.
In a speech to senior South African and Malaysian officials in the port city of Durban, Zuma said
the government wanted to drill 30 exploration wells over the next 10 years. 'Over the next 20
years, this could lead to the production of 300,000 barrels of oil and gas per day,' Zuma said. He
did however stress that there was
'significant uncertainty' about the extent of
South Africa's hydrocarbon resources.
Although blessed with an abundance of
minerals such as gold, platinum and coal,
Africa's most advanced economy has
always been a major oil importer. Zuma
said 9 billion barrels of crude was
equivalent to 40 years of South African oil
consumption, while gas deposits could
amount to as much as 11 billion barrels of
oil equivalent, equal to 375 years of
consumption.

Heerema to build Culzean jacket .Press Release
Maersk Oil North Sea UK Limited, operator of the Culzean development in the North Sea, has awarded a
contract for the engineering, procurement and construction (EPC) of the project’s well head platform
(WHP) jacket to Heerema Hartlepool Limited.
Heerema will build the WHP jacket and piles, the well head access deck and access ways. It’s expected that
the well head access deck
and access ways will be
fabricated in Hartlepool,
with the WHP jacket being
built in Vlissingen in the
Netherlands. The contract
is expected to be ready for
‘sail away’ ahead of the
drilling startup on the
project in Q2 2016, subject
to a final investment
decision in 2015.
The award comes
as Hercules Offshore Inc,
the provider of the
newbuild jack-up rig for
the Culzean development, begins a recruitment drive in Aberdeen as it establishes a permanent UK presence
to support the Culzean project and pursue other market opportunities. This inward investment is expected to
create up to 100 offshore and 20 onshore jobs.
Project on track
Welcoming the WHP jacket award, Maersk Oil UK Managing Director, Martin Rune Pedersen said,“The
Culzean project continues to progress well. This award has been made on schedule and three weeks after
steel cutting began on the heavy duty jack-up rig which will commence drilling in Q2 2016, subject to final
approvals.”
Commenting on the announcement, Exchequer Secretary to the Treasury, Priti Patel MP said, “The
Culzean project has the potential to meet around 5% of UK gas demand in 2020/21, and would not be
possible without the Government’s ultra high pressure, high temperature cluster area allowance. The new
allowance builds on the existing work that the Government has done with industry through field allowances,
which has helped create new jobs through record levels of investment. Oil & Gas UK estimates the
Government’s allowances directly incentivised £7bn of investment last year.”
Key facts on Culzean:
– Culzean is a uHP/HT field. Maersk Oil UK (49.99%) is the operator, with JX Nippon (34.01%) and Britoil
(BP) (16%) its co-venturers.
– Forecast plateau production is in a range of 400-500 million standard cubic feet per day (this represents
Maersk Oil equity production of 30-45,000 boepd).
– The accommodation platform will have the capacity for over 100 people.
– The water depth is approximately 88 metres and the reservoir is located around 4300 metres below sea level.

Report: Benefits of Cygnus project felt accross UK
A new report published 15 October has revealed the full extent of the economic benefits being generated by
the Cygnus gas project – the UK’s largest Southern Gas field discovery in the past 25 years.
The report by leading economics consultancy Oxford Economics has highlighted how the project will add
£1.29 billion to the UK economy and support more than 4,820 skilled jobs during its five-year construction
period.
It comes as drilling begins at the Cygnus field, following a
successful installation campaign which has seen one
platform and the jackets for a further two platforms safely
in place.
Economic benefits will be felt across the UK, in particular
throughout Scotland and the North East of England, where
19,000 tonnes of offshore infrastructure is being built at
yards in Hartlepool, Fife and the Highlands.
Most cash spent in UK
The budget for the overall project is in the region of £1.4
billion. Of this, just over £250 million will be spent on contractors and suppliers based overseas, leaving
almost £1.15 billion to be spent within the UK.
According to the report, in Scotland, where one platform and the bases for all four platforms are being built,
£323 million will be generated in the economy, securing 1,450 jobs including 15 apprenticeships at yards in
Fife.
Across the North East coast, it will bring nearly £90 million to the local economy and secure over 400 jobs,
including in Hartlepool. Three platforms for Cygnus are being built in the town, making it the third
consecutive offshore project by Centrica Energy to involve major construction work in Hartlepool.
“The total contribution of the Cygnus project to UK GDP is expected to be £1.29 billion over a near-five-
year period, sufficient to support an average of 4,820 jobs over that time.”
The investment in offshore operations, including transporting and installing the infrastructure for the
Cygnus field and bringing the field into production, will bring nearly £225 million for the UK economy and
support nearly 300 jobs.
Across the rest of the UK, the spending of people employed by the Cygnus partners and contractors will
support 1,540 jobs, adding £315.8 million to the nation’s economy.
At peak the Cygnus project, which was sanctioned in 2012, will produce enough gas to meet the demand of
1.5 million UK homes.
“The Cygnus North Sea project is already supporting valuable income and employment opportunities in the
North East, in Scotland and throughout the UK”
Adrian Cooper, CEO of Oxford Economics, said: “The Cygnus North Sea project is already supporting
valuable income and employment opportunities in the North East, in Scotland and throughout the UK, even

though the gas production process itself has yet to start. The benefits are being felt not just by those directly
involved in the design and build of the required infrastructure, but also by suppliers of goods and services
of all kinds to those contractors in turn.”
Colette Cohen, Senior Vice-President for the UK and the Netherlands at Centrica Energy, said: “This
report underlines how significant an impact the Cygnus project is having across the UK both in terms of
investment and jobs, as well as strengthening our security of gas supply. This is a great example of what can
be achieved when we invest in skilled people across the UK, creating thriving energy coasts and securing
gas for the UK.”
Read the full Oxford Economics – Economic Impact of Cygnus Project
http://library.the-group.net/centrica/client_upload/file/Oxford_Economics_report_Economic_Impact_of_Cygnus_Project.pdf
The Cygnus project is operated by GDF SUEZ E&P UK with a 38.75% interest, with partners Centrica
Energy (48.75%) and Bayerngas (12.5%).
The development was sanctioned in 2012
following the UK Government’s decision to
introduce a field allowance for new large gas
fields in shallow water, which provided GDF
and the project partners with the certainty
needed to go ahead. First gas at the field,
150km off the coast of Lincolnshire, is
targeted for the end of 2015.

Oil continue to fall, below $84 after hitting 4-year low
Reuters+ NewBase
Brent crude hit a new four-year low on Wednesday before recovering to just under $84 a barrel,
as faltering global growth curbed demand for fuel at a time of heavy oversupply.
Oil saw its biggest daily fall in more than three years on Tuesday after the West’s energy
watchdog slashed its forecasts for world oil demand for this year and 2015.
Brent for November delivery touched a fresh post-2010 low of $83.37, down $1.67, before
recovering to around $84.80 by 1330 GMT. Brent has now fallen more than 25 per cent from the
year’s mid-June peak.
US crude fell 24 cents a barrel to $80.61 after hitting a new 27-month low of $80.01 on
Wednesday. On Tuesday, the contract posted its largest fall in a single session in nearly two
years.
Traders said prices had rebounded slightly after US crude held above $80 a barrel, a symbolically
important level in a market that has crashed through most lines of major support.
But prices remain under pressure as core members of the Organisation of the Petroleum
Exporting Countries appear to be focused on fighting for market share rather than on cutting
production to shore up prices.
Weak European markets and slowing Chinese inflation added to concerns about global growth,
which have helped extend the rout.
US shale oil production is set to grow by around 106,000 barrels per day in November from
October, the US Energy Information Administration said.
On Tuesday, Iran said it could live with lower oil prices, joining the chorus of similar signals from
core Opec members Saudi Arabia and Kuwait.
US commercial crude oil inventories were forecast to have increased in the week ended October
10, while refined products likely fell, according to a Reuters poll of analysts.
Industry group the American Petroleum Institute (API) will issue its report later on Wednesday,
and the EIA will follow with its weekly data on Thursday. The reports have been delayed a day
due to Monday’s Columbus Day holiday.

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,
Energy Consultant
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Mobile : +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a totalKhaled Al Awadi is a UAE National with a total
of 24 yearsof 24 yearsof 24 yearsof 24 years of experience in theof experience in theof experience in theof experience in the Oil & GasOil & GasOil & GasOil & Gas
sector. Currently working as Tsector. Currently working as Tsector. Currently working as Tsector. Currently working as Technical Affairs Specialist forechnical Affairs Specialist forechnical Affairs Specialist forechnical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with externalEmirates General Petroleum Corp. “Emarat“ with external
voluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawkvoluntary Energy consultation for the GCC area via Hawk
Energy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of theEnergy Service as a UAE operations base , Most of the
experience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Managerexperience were spent as the Gas Operations Manager inininin
Emarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network FacilityEmarat , responsible for Emarat Gas Pipeline Network Facility
& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has& gas compressor stations . Through the years , he has
developed great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructingdeveloped great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in theof gas pipelines, gas metering & regulating stations and in the
engineeriengineeriengineeriengineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenanceng 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 & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gasagreements along with many MOUs for the local authorities. 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 EEEEnergy program broadcasted internationally , via GCC leading satellite Channels .nergy program broadcasted internationally , via GCC leading satellite Channels .nergy program broadcasted internationally , via GCC leading satellite Channels .nergy 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 16 October 2014 K. Al Awadi

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New base special 16 october 2014