Microsoft word new base 662 special 11 august 2015

Copyright © 2015 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 11 August 2015 - Issue No. 662 Senior Editor Eng. Khaled Al Awadi

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

Oman moots research on renewables for energy Written by Conrad Prabhu Oman Observer

The Research Council (TRC), has challenged the nation’s scientific community to research novel and sustainable technologies for generating, as well as storing electricity, in an effort to wean the Sultanate from an overly dependence on conventional energy sources for its power requirements.

The apex research institution has pledged support for initiatives that aim to harness the potential of renewable and alternative energy resources, including biomass, wave and tidal energy, and geothermal energy, in electricity generation and storage.

In its latest push to stimulate research in renewables, the Council has identified a number of research topics that, it says, could potentially hold the key to mitigating the nation’s increasingly untenable fossil fuel-based energy demand outlook.

Possible themes that could attract funding support from the Council include, among other subjects, research that aims to harness bio-energy and bio-fertiliser from municipal solid waste, as well as explore the potential for converting ocean thermal energy into electricity. Also of keen interest to the Council are initiatives that will result in the establishment of Solar Community and

Concerted push: Any technological breakthrough in energy storage will be a game-changer for renewable energy development




Charging Centres around Oman, as well as study the potential for Hybrid Power Generation (Micro-grids) in the Sultanate.

Importantly, innovations in energy storage are as much an objective of these research initiatives as electricity generation from renewables. Any technological breakthrough in electricity storage promises to be a game-changer for large-scale renewable energy development, not only in Oman, but globally, it is stressed.

According to a senior official, the quest for commercially viable alternatives to conventional power generation is both imperative and urgent in light of the spiralling demand for energy in the Sultanate.

“Electricity demand has increased from 2773 MW in 2007 to 5691 MW in 2014, having recorded an annual rate of 17.8 per cent in 2010,” said Dr Ahmed Said al Busaidi, Programme Manager — Renewable Energy Research, The Research Council. “Peak demand is envisaged to continue increasing due to accelerated population and industrial growth in Oman. The forecasted peak power demand in 2018 will be 6600 MW, and shortages in electric energy are expected to occur in the near future if current trends continue. This situation warrants that quick action must be taken to cover the expected increase in energy demand,” Dr Al Busaidi stressed.

According to the official, studies have demonstrably proven that renewable energy can play a major role in electric energy production and storage in Oman.

“To achieve these objectives, research studies and applied experimental research projects must be executed to explore energy generation and storage using solar energy, wind energy, biomass, wave and tidal energy and geothermal energy,” he noted.




Libya's El Feel and El Sharara oilfields remain closed Source: Reuters

Libya's El Sharara and El Feel oilfields remain closed due to protests and a pipeline blockage, oil officials

said on Monday.

Tribal elders have been trying for months to resume work at both fields, which could add some 400,000

barrels per day (bpd) of crude, doubling Libya's current output. Unconfirmed postings on social media

suggested there had been progress in the talks but Mohamed El Harari, spokesman for state oil firm NOC,

said the fields were still closed.

An oil source at the western Zawiya port linked to the El Sharara oilfield said there were efforts to reopen

the 340,000-bpd field but so far there was no breakthrough. An engineer at El Feel also said there was no

sign of output resuming.

The two oilfields have been shuttered by salary demands from security guards and the country's conflict

between the two rival governments vying for control of the north African OPEC state. Libya has two

governments, with the official premier working out of the east of the country after losing control of Tripoli a

year ago to a rival administration, part of a wider struggle four years after the ousting of Muammar Gaddafi.

The El Sharara field, co-run by NOC and Spain's Repsol, has been closed since November after a

community in Zintan, west of Tripoli, closed the pipeline. The Zintanis, who oppose the rival government in

Tripoli, have demanded that forces loyal to Tripoli leave the field. The Zintanis have also blocked a pipeline

from the southern El Feel oilfield, co-run by NOC and Italy's ENI.

Libya's oil production has fallen to less than 400,000 bpd, a quarter of what the North African OPEC

member pumped before an uprising toppled Gaddafi in 2011 and sent the country and its oil industry into

turmoil.




Kenya, Uganda settle on crude pipeline route Reuters+NewBase

Kenya and Uganda have reached a final decision on the route for a crude pipeline linking their newly found oilfields to the Kenyan coast, an important step for oil firms to make a final investment decision, the countries' presidents said on Monday.

Oil executives have previously said they cannot make progress with their final investment decision on developing discoveries in Uganda and Kenya until the pipeline route and related costs were clear.

Uganda has an estimated 6.5 billion barrels of crude reserves in its fields in the country's west near the border with the Democratic Republic of Congo while Kenya estimates its recoverable reserves at about 1 billion barrels.




A statement issued after Kenyan President, Uhuru Kenyatta's visit to his Ugandan counterpart, Yoweri Museveni, said: "The two heads of state agreed on the use of the northern route, that is Hoima - Lokichar - Lamu for the development of the crude oil pipeline."

The statement said the implementation of the pipeline route would be subject to Kenya guaranteeing the security on its side of the pipeline, the financing of the project, and a transit fee not higher than would be payable on any other alternative route.

"The presidents agreed ... implementation of the project without further delay," the statement said. Two possible routes had been proposed, with the second one following the route of an existing

products pipeline further south running to the port of Mombasa.

Alongside the pipeline on the corridor of land in the north of the country to Lamu, Kenya wants to build a new port to serve the region. It says work on Lamu port has begun, but experts say a spate of militant attacks in the region that borders Somalia have raised concerns about security of the pipeline along that route.

A fall in oil prices in the past year has knocked other oil projects off the agenda, but analysts say the Kenyan and Ugandan plans are unlikely to be shelved because they are relatively easy and cheap to access compared with offshore finds.

Joseph Njoroge, Kenya's petroleum and energy ministry, said in June that once a decision on the route was made, the pipeline's construction could be completed by about 2018 or 2019.

A spokesman for Britain's Tullow Oil , with stakes in Uganda and Kenya, said in June Tullow expected to decide on whether to proceed with investment in late 2016. France's Total and China's CNOOC are also investing in Uganda, while Tullow's partner in Kenya is Africa Oil




Philippines: Red Emperor Resources provides update on Hawkeye-1 well, offshore Philippines. Source: Red Emperor Resources

Red Emperor Resources has provided an update with respect to the drilling of the Otto Energy-operated Hawkeye-1 exploration well, offshore Palawan Basin in the Philippines.

The Hawkeye-1 exploration well was spud on 31 July 2015 and since then operations have run smoothly with the Joint Venture experiencing excellent performance from both the rig and service companies. After the installation of the 36” conductor at 1,906m the well was drilled (26”) and cased (20”) to 2,449m. Installation and testing of the blow-out preventer (BOP) has been completed, along with the 17 ½” hole to 2,664m. Current operations involve the setting of 13 3/8” casing in anticipation for drilling the 12 ?” hole to the primary target reservoir.

Red Emperor will continue to update the market with respect to the drilling operations in conjunction with the JV after target depth has been reached.

SC55 is located in the southwest Palawan Basin and covers an area of 9,880km2. It is a deep-water block in the middle of a proven regional oil and gas fairway that extends from the productive offshore Borneo region in the southwest to the offshore Philippine production assets northwest of Palawan.

The Hawkeye Prospect was identified on 2D seismic in 2007 and further defined with a 600km2 3D seismic acquisition in late 2009. Hawkeye contains a 'Best Estimate' STOIIP of ~480 MMbbls of oil and a 'Best Estimate' Gross Prospective Resource of 112 MMbbls (RMP net 14.3 MMbbls) (refer to the Company's announcement dated 2 March 2015).




Italy: Rockhopper Exploration provides update on Ombrina Mare Source: Rockhopper Exploration

AIM-listed Rockhopper Exploration, the oil and gas exploration and production company with interests in

the North Falkland Basin and the Greater Mediterranean region, has provided an update on the status of the

Ombrina Mare project in Italy.

Further to the Company's

announcement on 19 May

2015, the Italian Government

has announced that the

Environmental Impact

Assessment ('EIA') for the

Ombrina Mare field

development project ('FDP')

has now been approved by

the Minister for the

Environment and

countersigned by the Ministry

of Cultural Heritage. The

decree includes the

'Autorizzazione Integrata

Ambientale' (Integrated

Environmental Authorisation)

('AIA').

The decree will now be passed to

the Ministry of Economic

Development in order to

complete the process to award the

Ombrina Mare Production concession.

Sam Moody, CEO, commented:

'We are delighted to report progress on the Ombrina Mare project. While additional approvals are still

required before we move into the Production Concession, we consider this to be a significant milestone

towards unlocking the project.'

Ombrina Mare (Rockhopper 100%)

Operated by Rockhopper, the Ombrina Mare discovery is an appraisal / development project located off

the Abruzzo region in the shallow waters of the Central Adriatic. Subject to necessary approvals,

Rockhopper plans to drill and test an appraisal well to extend existing resource estimates and to optimise

plans for the development of the asset prior to project sanction.




Japan set to return to nuclear power Written by Oman Observer + AFP

Japan will on Tuesday begin restarting its nuclear power programme, officials said, after a two-year shutdown sparked by public fears following the Fukushima crisis. The restart comes more than four years after a quake-sparked tsunami triggered meltdowns at the Fukushima plant, prompting the shutdown of Japan’s stable of reactors in the world’s worst atomic crisis in a generation.

Resource-poor Japan, which once relied on nuclear power for a quarter of its electricity, restarted two reactors temporarily to feed its needs. But they both went offline by September 2013, making it completely nuclear-free for about two years.

Japan has ushered in tougher safety rules to avoid a repeat of Fukushima, including more backup prevention measures and higher tsunami-blocking walls in areas most susceptible to them.

The government of Prime Minister Shinzo Abe is keen to get some of about four dozen reactors backup and running. So are the power companies that own them, fed up with having to make up lost generating capacity with pricey fossil fuels.

“It is important for the country’s energy policy that the government go ahead with reactor restarts once they are confirmed as safe,” top government spokesman Yoshihide Suga told reporters. “The biggest priority is safety.”

The reactor No 1 at the Sendai nuclear plant, nearly 1,000 kilometres (620 miles) southwest of Tokyo, has been loaded with atomic fuel. Its operator announced on Monday the reactor would be switched on by 10:30 am (0130 GMT) today.

The 31-year-old reactor was expected to reach full capacity by “around 11:00 pm” on Tuesday

and would start generating power by Friday.




US: Sewage flow becomes Williston’s oil bust indicator Reuters + NewBase The population of a US oil boomtown that became a symbol of the fracking revolution is dropping fast because of the collapse in crude oil prices, according to an unusual metric: the amount of sewage produced.

Williston, North Dakota, has seen its population drop about 6% since last summer, according to wastewater data relied upon heavily by city planning officials.

They turned to measuring effluent because it was a much faster and more accurate way to track population than alternatives such as construction permits, school enrolment, tax receipts or airport boardings.

US Census Bureau figures are usually too old as a full-fledged population count only happens once a decade, with sporadic updates in between. That’s not going to catch any swift changes in the population of cities like Williston.

“Here in Williston, the growth rate is not predictable,” said David Tuan, director of the city’s public works department. “Measuring wastewater flow tends to be the most-efficient way to track population.”

The recent high-water mark for Williston’s population was 33,866 in August of last year, just before the oil price collapse. Crude oil has fallen more than 50% in the past year and hurt many companies’ finances, leading to massive cost cutting, including the cancellation of projects and layoffs.

By June of this year, the town had shrunk to 31,800 people, according to the sewage data. “I attribute that to the slowdown in oil prices,” said Tuan. Among the companies who have made big job cuts here are Halliburton Co and Schlumberger, alongside many smaller peers.

An apartment construction site in Williston, North Dakota. The population of Williston, a US oil

boom-town that became a symbol of the fracking revolution, is now sliding because of the collapse in

crude oil prices, according to an unusual metric — sewage flow.




Williston’s restaurants and retailers still bustle with activity most days, but many newly built apartment complexes are less than 80% full, according to real estate experts as supply overtakes demand.

City officials began studying sewage data after struggling to know how many people were pouring into their city during the boom. The latest Census estimate, from July 2014, shows just 24,562 residents in Williston.

Local officials now estimate the population by dividing daily effluent flow by 75, the number of gallons of wastewater each resident is estimated to produce each day. Weather and construction can affect the flows.

When figuring out how large to make a sewage

treatment plant, engineers have long multiplied the number of residents by the 75 gallon rule of thumb. Williston simply inverts this formula, a method academics have touted for its accuracy in measuring population.

In contrast, authorities in some cities — such as New York — track housing supply and usage to estimate population. Other data points show a contracting economy: Williston’s taxable sales fell 8.5% in the first quarter to $601.9mn, according to state data.

The contractions could portend an ominous turn for Williston, ranked as the fastest-growing small city in America for the past three years.

Many locals painfully recall two previous oil booms and busts in the 1950s and 1980s, when the local newspaper was filled with home foreclosure notices and the city government was left deep in debt.

Nor is the pain relegated to Williston. Midland, a key oil hub city in west Texas, saw a planned 58-story skyscraper canceled last year as the oil price slid. Williston is betting the growth will return, though some analysts are predicting oil prices will stay around $50 per barrel for some time.

That may mean the city’s population won’t double to 60,000 by 2020, as demographers have forecast. A new sewage plant — which is currently under construction and due to open in two years — was designed to handle that population spurt.

An oil derrick is seen at a fracking site for extracting oil outside

of Williston




Oil Price Drop Special Coverage

Oil prices fall after China devalues yuan Reuters + NewBase

Oil prices slumped on Tuesday following a jump in the previous session, as China devalued its yuan currency following a run of poor economic data that underscored the market view that fundamentals are too weak to warrant higher oil prices.

Crude oil futures jumped almost 4 percent on Monday, moving away from January lows, as speculative traders increased their net-long positions, but prices slumped again on Tuesday morning and remain over a quarter below their most recent peaks in May.

China devalued the yuan on Tuesday in what its central bank called a "one-off depreciation" of nearly 2 percent as its economy grows at its slowest pace in decades, guiding the currency to its lowest point in almost three years.

As a result, front-month Brent futures were at $50.02 a barrel at 0308 GMT, down 39 cents from their last close. U.S. crude fell 42 cents to $44.54.

"Prices are still facing heavy bearish pressures. This could mean that prices could reach 2015 lows," Singapore-based Phillip Futures said, although the brokerage added that it does not expect oil prices to fall below this year's lowest point reached in January. The overall low prices come on the back of weak supply and demand fundamentals, with output from key producers like the Organization of the Petroleum Exporting Countries (OPEC), Russia and the United States near record highs just as demand growth slows.

In China, the world's No.2 economy and oil consumer, exports tumbled 8.3 percent in July in their biggest fall in four months, threatening the government's 7 percent economic growth target for this year, already the lowest in decades.




Opec said to have no plans for an emergency meeting amid price drop Bloomberg + NewBase

Opec has no plans for an emergency meeting to respond to the slump in prices, according to delegates from the group, while members have discussed the possibility amid a persistent oversupply of crude.

Four delegates from the Organisation of

Petroleum Exporting

Countries, which controls about 40% of world oil

supplies, said they were not aware of any plan for an emergency meeting, asking not to be identified because discussions are private. Some members have discussed holding a meeting before the scheduled December 4 gathering, the Algerian official news agency reported citing Energy Minister Salah Khebri.

“Gulf Arab countries are likely to continue to veto such a meeting,” Amrita Sen, chief oil market analyst at Energy Aspects, said by e-mail from London.

Oil has slumped more than 25% since this year’s peak in June amid signs the global surplus will be prolonged. US inventories remain more than 90mn barrels above the five- year seasonal average. Societe Generale and JPMorgan Chase & Co cut their price forecasts on weaker demand growth and oversupply.

“We support an emergency meeting of the Organisation of Petroleum Exporting Countries,” Nagi Elmagrabi, chairman of Libya’s state-run National Oil Corp, said by phone yesterday. “Global supply should be reduced in order to lift prices.”

Political strife cut Libya’s output to about 400,000 bpd, compared with 1.6mn bpd before the 2011 rebellion that ended Muammar Gaddafi’s 42-year rule, according to data compiled by Bloomberg. Algeria produces 1.1mn bpd.

The oil price slump is due to “oversupply, declining demand in China and the agreement on the Iranian nuclear which affected the market,” Khebri said. Iran plans to boost crude production after a deal last month with world powers that will lift sanctions in exchange for curbs on the country’s nuclear programme.

“It doesn’t look right now as if there would be enough of a consensus” to hold an emergency Opec meeting, Paul Horsnell, head of commodities research at Standard Chartered said by e-mail from London.

Opec decided at its last meeting on June 5 to keep its production target of 30mn bpd unchanged to defend market share amid rising output from higher-cost producers such as US shale companies. The policy has been led since last year by Saudi Arabia, the group’s largest producer with an output of about 10.6mn bpd.




Opec has exceeded its production target every month since May 2014, according to data compiled by Bloomberg. Middle Eastern producers are competing increasingly with cargoes from Latin America, North Africa and Russia for buyers in Asia.

“Libya and Algeria are just signalling their desperation by calling for such a meeting,” Robin Mills, a Dubai-based analyst at Manaar Energy Consulting, said by e-mail. “Libya, in its current situation, can’t carry much weight or credibility within Opec.”




ENTRY OF IRANIAN OIL POSE THREAT TO RECOVERY OF OIL PRICES By Fareed Rahman, Senior Business Reporter , Gulf News ,,, UAE

As oil continues to slump due to oversupply and weak demand, the entry of Iranian oil into the market is likely to pose another big threat to recovery of prices. Oil prices have plunged by more than 50 per cent in the last one year as the US pumped record volumes of shale, and demand slackened across the globe.

From a peak of $115 (Dh422) in June last year, oil prices have dropped to less than $50 (Dh183) this week. Ole Hansen, head of commodity strategy at Saxo Bank said the increased supplies from Iran present another obstacle for the recovery of oil prices, even though it is uncertain when the Iranian oil will enter the market.

“Before Iranian oil exports pick up we still need to see compliance being verified, before sanctions are lifted. This process will most likely prevent Iran from increasing exports for at least another six months and, even then, the impact on the market will depend on the price level at that time.”

“The renewed slump during July and August back towards the lows witnessed earlier this year will, if maintained, have a negative impact on non-Opec production levels, not least from US shale formations.”

An important member of the Organisation of the Petroleum Exporting Counties (Opec), Iran has the world’s fourth largest proven oil reserves after Saudi Arabia, Venezuela and Canada. The country’s annual production is estimated to be about 2.8 million barrels per day (bpd). Exports stand at about 1.1 million bpd, half their pre-sanctions level, according to data from the US energy department.

Iran last week said it can increase production by 500,000 barrels per day within a week of sanctions ending, and by a million barrels per day within a month. The country reached a historic agreement with P5+1 group of countries in July that would pave way for the removal of sanctions on the Islamic republic.

Daniel Ang, an Investment Analyst from Singapore-based Phillip Futures said the real issue would be about how much demand can increase before Iranian crude would be introduced. “We are seeing slightly higher crude imports from China and would think that this is a healthy sign. On top of this, the supply side is currently being eased with some cuts in US crude production underway.”




“We have been expecting this correction to happen for the US, and depending on how much US production can drop, this could help support the market when Iranian crude comes into the picture.

Meanwhile, oil traded lower during the Asian session on Monday before paring some of the losses. International benchmark brent was trading at $48.91 per barrel on Monday at 3.37pm UAE time, up 0.62 per cent. West Texas Intermediate (WTI) was placed at $43.90 per barrel, an increase of 0.07 per cent.




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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 [email protected] [email protected]

Khaled Al Awadi is a UAE National with a total of 25 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 11 August 2015 K. Al Awadi

Microsoft word new base 662 special 11 august 2015

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Transcript of Microsoft word new base 662 special 11 august 2015