Post on 16-Jul-2015
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 1
NewBase 28 May 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Leading solar panel maker Yingli to bid on Dubai project TheNational
Yingli, the world’s largest photovoltaic solar panel manufacturer, announced yesterday that it will be bidding for work on Dubai’s 100 megawatt solar park project as one of its first forays into the
region. “We see the move towards solar power in the region and we want to be part of it,” said Dimitirios Bachadakis, the managing director of Yingli Green Energy. “We will be bidding on Dubai’s IPP [independent power plant] project. There is a huge move towards solar energy in Saudi Arabia, Oman and the UAE to name just a few. The conditions are perfect here and, as we have shown supplying 9GW of clean energy worldwide, it is now becoming an energy which can be easily harnessed and managed without the complications of previous years.”
Solar companies around the world are slowly recovering from a deep sector crisis, caused by a glut of equipment that led to a pricing slump over the past five years.
Yingli supplies 9 per cent of the globe’s solar panels, manufactured mainly in China. Its panels have been installed in Brazil’s football stadiums for next month’s Fifa World Cup and it is looking to expand in the region, including in the UAE.
The renewable energy grid connectivity regulations are now in place in the UAE and the Middle East and North Africa will need more than US$50 billion in investments by the end of the decade to add as much as 15,000MW of solar-generating capacity, according to the Middle East Solar Industry Association and Meed Insight.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 2
Analysts say Dubai needs to install $100 million worth of solar panels to meet its renewable energy target for Expo 2020, and this target means that it will need to install more than 10 times the capacity of Shanghai’s 4.7MW solar array. International competition to build that solar capacity will be intense; about 150 companies vied for contracts at Dubai’s first solar park, a relatively small 13MW plant.
The Dubai Electricity and Water Authority (Dewa) last month issued a tender for the 100MW solar park, part of the Dh1bn 1,000MW Mohammad bin Rashid Al Maktoum Solar Park project.
“By the end of the year it will be possible for domestic users to buy solar panels from hardware stores and hook them up to the grid,” said Ivano Iannelli, chief executive, Dubai Carbon Centre of Excellence. “Dewa will help you now, regardless of the regulations, off the grid. The entrance of this very large tier 1 manufacturer has to be celebrated, it means the legislative and economic moves of the UAE has incentivised corporations to relocate. With the IPP, 100MW is a very large plant for a single installation. It makes sense for Yingli to be a partner in the venture as it is one of the companies that is focused on research and development and keeps pushing back the boundaries.”
Yingli has set up offices in Abu Dhabi and Dubai to promote to public and private entities the possibilities of solar energy.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 3
Expro wins Iraq oil well testing contract Press release - Expro
Leading international oil field services company, Expro, has clinched a multi-year contract with a leading international oil company for multiphase production testing in Iraq.
As per the contract, Expro will provide non-intrusive multiphase production testing of oil wells in this on shore field, said a senior official. "This contract award highlights an innovative element of the broad product and service portfolio we offer throughout the region and across the lifecycle of the well,” remarked Selim
Djandji, the region director for Mena. "Expro is committed to the local communities where we work, including recruitment and training of indigenous work-force - delivering new technology to the Iraq oil and gas industry," he added.
Expro said it will be utilising its Sonar metering technology to measure production from the wells. SonarTest leverages Expro’s clamp-on Sonar technology, which enables non-intrusive well production surveillance.
It is well suited for high-frequency testing in challenging environments and importantly, significantly reduces potential environmental and safety risks. Patrick Curry, the general manager at Expro Meters, said: "Our small footprint, non-intrusive Sonar technology enables high-frequency, safe, flareless production testing, which is important to the redevelopment of these
fields." Expro's Sonar meters are manufactured in Wallingford, Connecticut and are deployed by Expro crews based in the respective local markets. Expro began production testing operations in Middle East in 2012. Since then, the company has tested over 500 wells in Iraq and over 1,000 wells worldwide with SonarTest.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 4
Successful start-up for Laffan Refinery DHT project
The Laffan Refinery venture has celebrated the successful start-up of its new Diesel Hydrotreater (DHT) Project, a first of its kind in Qatar.
The new facility was completed without a Lost Time Incident (LTI) and brought in ahead of schedule and under budget cementing the refinery’s reputation for world class execution of
hydrocarbon projects, Qatargas said in a release. The start-up was declared three weeks early on April 10 and this was followed by the catalyst activation on April 26.
Qatargas Chief Executive Officer Sheikh Khalid bin Khalifa al-Thani said; “I am extremely happy to welcome this new asset into the Qatargas family. The introduction of ultra-low sulphur diesel to our economy is a major step forward in terms of our commitment to responsible environmental management and is a critical component of Qatar’s 2030 vision.”
“In particular I would like to recognise the efforts of our people who have demonstrated exemplary teamwork in ortder to complete this project safely within the schedule and budget. Perhaps most pleasing of all is the safety record delivered by the team by completing the work without a Lost Time Incident in 6mn man-hours worked.
These excellent standards for safety are achieved only with the commitment and professionalism of everyone involved in the work. I offer my congratulations to the Project Management Team, our Operations Development and Asset staff as well as our contractors and sub-contractors.”
“The achievement of the start-up in April marks the successful execution of a 32 month schedule,” Qatargas said.
Detailed engineering design for the project began in September 2011 with Samsung Engineering and Construction Ltd (SECL) as the main contractor. The permanent works construction phase commenced in July 2012.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 5
As it enters its operational phase, the DHT unit will produce diesel with less than 10 parts per million of sulphur, which will exceed the “best in class” Euro 5 Specification. This will make a major contribution towards the State of Qatar’s drive for world class environmental standards.
At first it will operate at 50% capacity receiving feedstock from Laffan Refinery 1 and then later at 100% capacity when Laffan Refinery 2 comes on stream. Then, the DHT unit will process 54,000 barrels per stream day of straight run light gas oil feedstock.
On January 8, the DHT Project started receiving permanent 20 kV Power from the Laffan Refinery electricity network. Energisation of the DHT electrical sub-station marked an important milestone in the DHT Project progress as it preceded another busy period of work packages within the LR1 shutdown.
Speaking about a second successfully delivered project, Salman Ashkanani, Chief Operating Officer (Refinery Ventures), said;
“Our team has worked very hard to deliver efficiencies and exploit synergies and opportunities within the scope of work. The success of the DHT Project builds on the reputation established previously by the same project team on the Receiving and Loading Facilities (RALF) Project which was also delivered within cost and schedule and also completed with an impeccable safety record.
We use proven Qatargas methodologies such as IiPMS (Integrated Project Management Solutions) as well as established company procedures and processes. Execution plans are diligently prepared and then we try very hard to let the plans drive the work. Of course teamwork has played a huge part in the success of the project but I would also attribute the depth of experience within the team as a major factor in our success. We are all very proud of our safety achievement by completing 6mn LTI-free man-hours and 6,000 safety observation cards.”
About The Laffan Refinery :-
Laffan Refinery, Qatar’s first condensate refinery started
production in September 2009. It is designed to be one of the
largest condensate refineries in the world.
The refinery has started with a processing capacity of 146,000 barrels
per stream day (BPSD) and currently utilises the field condensate
produced from the Qatargas and RasGas facilities. The Laffan Refinery
has a production capacity of 61,000 bpsd of naphtha, 52,000 bpsd of
kerojet, 24,000 bpsd of gasoil, and 9,000 bpsd of LPG. Laffan Refinery
Venture activities continue with plans to expand condensate refining
capacity, supplying more products from a second refinery expected in
2016, this is known as Laffan Refinery 2 (LR-2). Laffan Refinery 2 is expected to be fully operational by early 2016.
This facility will be able to process an additional 146,000 barrels per stream day (BPSD), therefore in total the
processing capacity that will be available to Laffan Refinery will be 292,000 bbl/d.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 6
Gas volumes pledged for new industrial hubs (OEPPA Business Development Dept)
Natural gas output from energy major BP’s tight gas fields in Block 61 will not only support the
energy and feedstock requirements of the Duqm Special Economic Zone (SEZ), but also several
new industrial hubs planned by the government in different parts of Oman, according to Dr
Mohammed bin Hamed al Rumhy (pictured), Minister of Oil and Gas.
He said future gas
volumes that are not
already committed to
the power generation,
water desalination,
and industrial and
petrochemical sectors,
will help drive the
growth of new
industrial zones
envisaged around the
Sultanate.
“A big chunk of (BP) gas will be pumped to Duqm because the SEZ there is set to become a
major new consumer of natural gas,” said Dr Al Rumhy. “But we are not just looking at Duqm,
Sohar and Salalah as users. The government intends to create industrial centres all over the
country. They may not be as large as Duqm. Meeting their (energy) requirements is part of the
government’s and MOG’s plans for future gas users,” he added.
The Minister made the comments to journalists after presiding at a ceremony at which 49 scholars
of Petroleum Development Oman (PDO) received their doctoral, postgraduate, graduate and
distance learning degrees.
BP is already making headway in the development of its massive Khazzan-Makarem tight gas
field in Block 61. The company plans to drill around 300
wells over 15 years to deliver plateau production of one
billion cubic feet (28.3 million cubic metres) of gas per
day and 25,000 barrels per day of gas condensate.
First gas is slated during 2017 when Oman Gas
Company also plans to bring into operation a gas
pipeline serving the Duqm SEZ.
Future allocations of BP and other uncommitted
volumes of natural gas will be earmarked only to industries that offer “maximum returns” in
socioeconomic value, said Dr Al Rumhy.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 7
Consequently, existing industries looking for additional volumes to achieve their expansion plans
must prove they will meet this fundamental prerequisite before receiving any new commitments,
he noted. “Unfortunately, we’re in a situation where we cannot supply everybody that wants gas.
Thus, in selecting those who will receive gas, we will look at the projects that give us maximum
value. So if maximum value is assured by a project through expansion, then we will give them
gas,” he stated.
Commenting on offshore exploration
prospects, Dr Rumhy underlined the
need for studies to be completed before
the hydrocarbon potential of Oman’s
largely unexplored offshore blocks is
known. “We are still waiting for work to
progress. Masirah is a good prospect.
We are excited about it. There is a
prospect in Block 41 that Total is
studying. But these things take time.
When we get results, we will share that
information to all,” he added.
In March, Masirah Oil Limited reported successful flows during exploratory tests in its 17,000 sq
km Block 50 license off Oman’s eastern seaboard. Earlier in December, energy giant Total signed
an Exploration and Production Sharing Agreement (PSA) for offshore Block 41 northwest of
Muscat. The block covers a large unexplored area of almost 24,000 square kilometres, in water
depths ranging from 30 to more than 3,000 metres.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 8
Socar and BP kick off Trans Anatolian Natural Gas Pipeline construction
The State Oil Company of Azerbaijan (Socar), and its partners, BP from UK, the Turkish State-owned company Boru Hatlari Ile Petrol Tasima Anonim Sirketi (Botas), awarded the engineering, procurement and construction management (EPCM) five years contract to the Australian-based engineering company WorleyParsons for the construction of the Trans Anatolian Natural Gas Pipeline (TANAP) project, the master piece of the Southern Corridor Pipeline giant project to connect the gas reserves of the Caspian Sea to Europe.
This TANAP EPCM contract covers the pipeline lay out and the construction of the gas compression stations. WorleyParsons will provide Socar and its partners with project management services including the design, engineering, construction, procurement and contracting operations. Crossing Turkey from east to west, the TANAP project has been announced in November 2011.
Since BP and its partners Socar, Total and Statoil made the final investment decision to proceed with the Azerbaijan Shah Deniz Full Field Development, all these stakeholders had move forward on the transportation scheme.
With 1,841 kilometers, TANAP will received the natural gas from the South Caucasus Pipeline (SCP) Expansion currently in construction in Azerbaijan and will connect in Greece with the Trans-Adriatic Pipeline (TAP) project planned to join the southern Europe pipeline system in Italy.
In December 2011, Turkey and Azerbaijan signed a memorandum of understanding (MOU) to establish the TANAP joint venture with the contribution of their respective national oil companies, Botas, TPAO and Socar.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 9
When BP and its partners Total and Statoil made the final investment decision (FID) on the Shah Deniz Full Field Development on December 2013, they had the opportunity to exercise their right to take stakes in the strategic TANAP project.
BP joined Socar and Botas in TANAP joint venture
In December 2013, only BP decided to take this opportunity as the operator in Shah Deniz while Total and Statoil preferred to stand away in respect with the low financial return of TANAP investment.
Originally budgeted to $4 to $5 billion capital expenditure, TANAP last estimations have spiraled up to $12 billion.
In the same time the fees required by the Turkish Authorities to cross the country did not help the financial balance.
As a result TANAP working interests are shared between:
- Socar 68% is the operator
- Botas 20%
- BP 12%
Designed by the US engineering company Bechtel, TANAP will have the capacity to transport 16 billion cubic meters (bcm) of natural gas per year.
From these 16 bcm of natural gas shipped from Azerbaijan, 10 bcm should transit to Europe through the Trans-Adriatic Pipeline and 6 bcm will be distributed in Turkey for the local consumption.
In a second phase, TANAP could be doubled to reach 32 bcm.
Socar and its partners, BP and Botas have
selected WorleyParsons for TANAP EPCM contract in expecting the completion of the Trans Anatolian Natural Gas Pipeline by 2018.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 10
Kazakhstan: Max Petroleum announces disappointing appraisal
well result at the East Kyzylzhar I field … Source: Max Petroleum
Max Petroleum, an oil and gas company focused on Kazakhstan, has announced that it has completed drilling the KZIE-3 appraisal well in the East Kyzylzhar I field to a vertical depth of 1,315 metres without encountering sufficient hydrocarbons to be commercial and it will be plugged and abandoned. The Zhanros ZJ-30 rig will next move to the Zhana Makat field to drill the ZMA-E7 development well.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 11
Kazakhstan: MOL announces a new discovery in the Fedorovsky
Block, Kazakhstan .. Source: MOL
MOL has announced a new discovery in the Bashkirian tier’s sediments of the Carboniferous period in the Rozhkovskoye field in the Fedorovsky Block, Kazahstan. Specifically, inflow of high quality light crude oil and gas with maximum flow rates of 1.9 mbbl/day and 6 million cubic feet/day (1 mboe/day) was recorded, respectively.
This flow rate was on a relatively small choke (24/64’’ or 95 mm), and was produced while testing of the Bashkirian reservoirs. Previous exploration had targeted the Bobrikovskiy and Tournaisian horizons, thus the discovery of oil reserves in the Bashkirian had not been included in the previous resource and reserves assessment.
Therefore the positive test results from the new Bashkirian discovery will significantly increase the field’s reserve prospects. Quantitative evaluation of reserve is underway and MOL expects further increase following the results of further exploration and appraisal of the Fedorovsky Block.
MOL has a 27.5% working interest in the Fedorovsky block in Kazakhstan. MOL's partners in the Block are KazMunaiGas E&P (50%) and FIOC (22.5%).
The oil discovery is definitely positive
news since Exploration & Production is
a large-weight segment at MOL and it
could be the engine of future growth.
MOL did not have oil production in
Kazakhstan in 2013 and the daily flow
at the current discovery is not
substantial therefore a turnaround will not be achieved by it. It could, however, help MOL achieve its
goal of 91,000-96,000 bbl/day production this year and to finally put a stop to the contraction of
hydrocarbon production volumes by the end of 2014.
The latest E&P report
of MOL showed a
major contraction in
MOL’s 2p reserves,
but Kazakhstan’s
share in total is
negligible (only 35
mmboe of the total of
nearly 600 mmboe),
but after the current
discovery the
estimated level of
reserves could rise.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 12
ONGC Spuds First Exploration Well in India's Palar Basin by Oil and Natural Gas Corporation Ltd. Press Release
Oil and Natural Gas Corporation Ltd. (ONGC) reported Tuesday that the company has commenced drilling the first exploration well in Palar Basin, located some 34.2 miles (55 kilometers) from Chennai, India May 25. The Basin is sandwiched between two major prolific basins of the South – KG in the north and Cauvery in the South.
ONGC won the block PR-ONN-2005/1 spread over around 695 square miles (1,800 square kilometers) jointly with Tata Petrodyne Ltd (20 percent stake) in the seventh round of NELP bidding. It was granted an extension in the drilling of two wells under the Minimum Work Program (MWP). The second well planned is around 4.3 miles (7 kilometers) from the current site and will be drilled well within the time frame stipulated in the MWP.
Speaking at the spudding ceremony Narendra K Verma, director (Exploration) said that the well NAAA reminded him of the iconic wells like Lunej-1, Disangmukh-1, Narsapur-1, PY-1 which opened up new basins in the country. “Palar will not be an exception and you are on the threshold of creating history. The sediment type and basinal settings give us this hope”, he remarked.
The Director assured of a massive upgradation of all hardware including rigs, vessels, floaters etc. to achieve the mission objective. He also hoped that the subsidy burden on ONGC would gradually reduce, giving it enough resources to venture into ambitious projects in India and abroad.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 13
Norway: Faroe Petroleum announces successful side-track
appraisal of the Pil oil discovery . Source: Faroe Petroleum
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway, the Atlantic margin and the North Sea, has announced the completion of a successful initial side-track appraisal well on the Pil oil and gas discovery (Faroe 25%) in the Norwegian Sea.
The Pil side-track well
(6406/12-3 B), to appraise for additional hydrocarbons along the Pil structure and down-dip from the initial discovery well, has reached a total depth of 3,996 metres below sea level. Results based on extensive coring, wireline logs and pressure data show that the well has encountered oil in reservoir sands with a very high net to gross ratio. Preliminary data indicate a gross hydrocarbon-bearing
reservoir section with approx. 80 metres of oil in the Upper Jurassic reservoir of the Rogn Formation. The oil-bearing interval in the side-track well was found to be at a similar pressure level to the oil bearing interval in the initial discovery well.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 14
As announced on 6 March 2014, the Pil discovery well (6406/12-3S) encountered a gross hydrocarbon-bearing reservoir section with approx. 135 metres of oil and 91 metres of gas in the Upper Jurassic reservoir of the of the Rogn Formation. A subsequent drill stem test generated a stable flow rate of 6,710 bopd of 37° API oil from a 56/64” choke, providing clear evidence of a prolific reservoir.
A second side-track well is planned to commence in the coming days to test the separate Bue Prospect, which has the potential to add further volumes to the Pil discovery.
The Pil discovery is located within tie-back distance some 33 kms to the south east of the Njord platform in which the Company holds a 7.5% working interest. The vertical depth of the well is currently at 3,605 metres. The Pil licence drilling operations are operated by VNG Norge (30%) using the Transocean Arctic drilling rig, with partners Spike Exploration Holdings (30%) and Rocksource Exploration Norway (15%).
Graham Stewart, Chief Executive of Faroe Petroleum, commented:
'We are very pleased to announce the results of this successful side-track appraisal well on the Pil discovery, which proves further resource potential in this already significant discovery. The successful well result on this Pil appraisal side-track adds further value to Faroe’s already substantial position in this prolific part of the Norwegian Sea, and we aim to unlock further potential in this exciting core area. In the near term we look forward to reporting results from exploration drilling on both the nearby Bue prospect (Faroe 25%) and the Butch South West prospect (Faroe 15%) in the Norwegian North Sea.'
Mexico’s energy reform seeks to reverse decline in oil production Source: U.S. Energy Information Administration
In late 2013, Mexico's congress approved historic legislation that altered the 1938 ban on private sector participation in the Mexican energy sector. These reforms, that end the 75-year monopoly of Petroleos Mexicanos (Pemex) and allow for greater foreign investment, are the first to include constitutional change, and promise to address many of the challenges that have resulted in a decade-long decline in Mexico's oil production.
Last year, Mexico produced 2.90 million barrels per day (bbl/d) of total liquids, continuing the decline from its peak of 3.85 million bbl/d in 2004. Crude oil is the most significant component of Mexico's liquid fuels production, accounting for at least 85% of production in the past two decades. Preliminary estimates
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 15
indicate April 2014 production of crude oil was about 2.5 million bbl/d, the lowest monthly average since 1995.
The new reforms include the following:
• Create four oil and gas exploration and production contract models, including service contracts,
production-sharing, profit-sharing, and licenses.
• Give Pemex first refusal on developing Mexican resources before private companies begin bidding
rounds (round zero), in which Pemex can provide financial and technical plans to develop the
resources within three years.
• Give regulatory authority over the oil and gas sectors to the Energy Regulatory Commission, the
Secretary of Energy, and the National Hydrocarbon Commission, and create the new National
Agency of Industrial Safety and Environmental Protection.
• Keep Pemex as state-owned but with more administrative and budgetary autonomy, and allow the
company to compete for bids with other firms on new projects.
• Establish the Mexican Petroleum Fund to manage contract payments and oil revenue.
Before the reforms can take effect, Mexico's legislature must finalize the secondary laws detailing the fiscal regime, including the contract terms for the exploration and production models and local content requirements. It is expected that Mexico will finalize the secondary legislation by early August.
Unlike the contract terms and local content requirements, which require legislative action to implement, Pemex is already moving forward with its proposal to retain oil and gas assets in the deepwater oil fields in the Perdido Fold Belt and offshore gas fields in Lakach. These proposals have been submitted to the energy ministry. A final decision will be announced in September.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 16
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Services
Khaled Malallah Al Awadi, MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990
Energy Services & Consultants Mobile : +97150-4822502
khalid_malallah@emarat.ae khdmohd@hotmail.com
Khaled AlKhaled AlKhaled AlKhaled Al Awadi is a UAE National with a total of 24 yearsAwadi is a UAE National with a total of 24 yearsAwadi is a UAE National with a total of 24 yearsAwadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & 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 Hthe GCC area via Hthe GCC area via Hthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations awk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations awk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations awk 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 , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed has developed has developed has developed
great expegreat expegreat expegreat experiences in the designing & constructingriences in the designing & constructingriences in the designing & constructingriences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply 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 Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs OUs OUs OUs for for for for
the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted Energy program broadcasted Energy program broadcasted Energy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 28 May 2014 K. Al Awadi