new base special 20 april 2014

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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 20 April 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Sabic and Shell to expand Saudi Arabia Al-Jubail Sadaf Complex Source Shell . The international oil company (IOC) Royal Dutch Shell (Shell) and the global petrochemical group Saudi Basic Industries Corporation (Sabic) have agreed to expand their joint venture Saudi Petrochemical Company (Sadaf) with the addition of world-scale polyolefins production units on their existing site in the Al-Jubail Industrial Zone in Saudi Arabia. In the chemical industry, Shell Chemicals ranks in the sixth position among the largest petrochemical companies in the world by revenues. On the upstream side Shell suffered these last years from the depressing prices of the natural gas, especially in North America. But these low gas prices provide all the petrochemical companies with a competitive advantage on the feedstock, especially in emerging markets where the demand is booming for petrochemical products. In parallel Sabic acquired DSM petrochemicals activities in Europe and GE Plastics in USA. Through these strategic moves, Sabic sent the signal to become a global player in the downstream sector and to increase its added value in the chemical products. Established in 198o in Saudi Arabia as a 50/50 joint venture, Sadaf appears as the best opportunity for both companies Shell and Sabic to meet their strategic goals through a significant expansion of the existing facilities in pricy chemical building blocks. Producing more than 4.7 million tonnes per year of ethanol, ethylene, ethylene dichloride (EDC), methyl tertiary butyl ether (MTBE), caustic soda and styrene monomer, Sadaf export most of its production in the Asia Pacific Region. From its competitive advantage on the supply side and its large market coverage in the most populated and fastest growing countries, Shell and Sabic are planning to take a leap with the Sadaf Polyurethane project in Al-Jubail.

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Page 1: New base special  20  april 2014

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 20 April 2014 Khaled Al Awadi

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

Sabic and Shell to expand Saudi Arabia Al-Jubail Sadaf Complex Source Shell .

The international oil company (IOC) Royal Dutch Shell (Shell) and the global petrochemical group Saudi Basic Industries Corporation (Sabic) have agreed to expand their joint venture Saudi Petrochemical Company (Sadaf) with the addition of world-scale polyolefins production units on their existing site in the Al-Jubail Industrial Zone in Saudi Arabia.

In the chemical industry, Shell Chemicals ranks in the sixth position among the largest petrochemical companies in the world by revenues. On the upstream side Shell suffered these last years from the depressing prices of the natural gas, especially in North America.

But these low gas prices provide all the petrochemical companies with a competitive advantage on the feedstock, especially in emerging markets where the demand is booming for petrochemical products. In parallel Sabic acquired DSM petrochemicals activities in Europe and GE Plastics in USA.

Through these strategic moves, Sabic sent the signal to become a global player in the downstream sector and to increase its added value in the chemical products.

Established in 198o in Saudi Arabia as a 50/50 joint venture, Sadaf appears as the best opportunity for both companies Shell and Sabic to meet their strategic goals through a significant expansion of the existing facilities in

pricy chemical building blocks. Producing more than 4.7 million tonnes per year of ethanol, ethylene, ethylene dichloride (EDC), methyl tertiary butyl ether (MTBE), caustic soda and styrene monomer, Sadaf export most of its production in the Asia Pacific Region.

From its competitive advantage on the supply side and its large market coverage in the most populated and fastest growing countries, Shell and Sabic are planning to take a leap with the Sadaf Polyurethane project in Al-Jubail.

Page 2: New base special  20  april 2014

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

KBR won FEED contract for Sadaf Polyurethane project

Since 2012, the Sadaf Expansion project has been in feasibility study with an estimated budget of $3 billion capital expenditure. These two years were necessary to optimize the combination of the multiple production units to be integrated in this Sadaf Polyurethane complex.

From this feasibility study, Shell and Sabic intent to produce:

- Methylene Diphenyl Diisocyanate (MDI) - Polyol - Polyurethane - Toluene Diisocyanate (TDI)

Because of its large size the Sadaf Polyurethane project should also include additional offsites and utilities.

With the production of polyurethane and derivates, Shell and Sabic are targeting the manufacturing industries for synthetic rubber, adhesives, performances plastics, fibers, insulation materials and seals, and automotive parts.

After developing its downstream sector, the Saudi Arabia is favoring the local implantation of manufacturing industries, first because the Kingdom is the largest populated country in the region, second as it is the only way to create enough employment for this young population. In awarding the front end engineering and design (FEED) contract for the Polyurethane project to KBR, Shell and Sabic expect this design phase to be completed in 2015, so that first production in Al-Jubail could start before 2020.

KBR is headquartered in Houston, Texas, also known as the energy capital of the

world. We employ approximately 27,000 people worldwide in regions that include the

Americas, Africa, Asia-Pacific, Australia, Europe and the Middle East. A technology-

driven engineering, procurement and construction company, KBR delivers a wide

range of services through these business units: Oil & Gas; Downstream; Technology;

Infrastructure, Government and Power (IGP) Americas; IGP Europe, Middle East and

Africa; IGP Asia Pacific; IGP North American Government and Logistics; Canada

Operations; U.S. Construction; Building Group; Industrial Services; and Ventures.

Page 3: New base special  20  april 2014

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

US delays Keystone XL pipeline Written by Oman Observer

The Obama administration further delayed its decision on the controversial Keystone XL pipeline

project, with no conclusion now likely until after the US mid-term elections in November. President

Barack Obama has said he will have the final say on whether to allow the pipeline connecting

Canada’s oil sands region to Texas refiners, and several government agencies had been given

until May to weigh in.

This had raised expectations of a final decision by mid-year. But the State Department said on

Friday it was extending that agency comment period, citing a need to wait until the Nebraska

Supreme Court settles a dispute over what path the $5.4 billion TransCanada Corp project should

take. “That pipeline route is central to the environmental analysis for the project and if there are

changes to the route it could have implications,” a senior State Department official told reporters.

The legal process will likely continue past November and might stretch into next year, meaning

more delays for the politically-charged issue that has been on the drawing board for more than

five years. By linking Canadian fields to refiners in the Gulf Coast, the 1,200-mile (1,900-km)

pipeline would lift an energy patch where heavy oil is abundant but that is reached only by burning

vast amounts of fossil fuels.

Page 4: New base special  20  april 2014

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

The oil industry agues projects like Keystone can reduce the United States’ reliance on Middle

East oil while partnering with one of the country’s closest political allies, Canada. Delaying

Keystone means “the United States will continue to rely on suspect and aggressive foreign

leaders for the eight to nine million barrels of oil that is imported every day,” TransCanada Corp

Chief Executive Russ Girling said.

What is the Pipeline exactly?

The Keystone Pipeline already exists. What doesn’t is its proposed expansion, the Keystone XL Pipeline. The existing one runs from oil sand fields in Alberta, Canada into the U.S., ending in Cushing, Oklahoma.

The 1,700 new miles of pipeline would offer two sections of expansion. First, it would connect Cushing, Oklahoma, where there is a current bottleneck of oil, with the Gulf Coast of Texas, where oil refineries abound. Second, it would include a new section from Alberta to Kansas. It would pass through Bakken Shale region of eastern Montana and western North Dakota. Here, it will pass through a region where oil extraction is currently booming and take on some of this crude for transport.

The southern leg of the Keystone XL, which went into normal operation in January 2014, ties into the existing Keystone pipeline that already runs to Canada, bringing up to 700,000 barrels of oil a day to refineries in Texas. At peak capacity, the pipeline will deliver 830,000 barrels of oil per day. While the pipeline is initially carrying U.S. light crude, it is expected to carry more heavy Canadian oil harvested from tar sands over the next year.

TransCanada has been attempting to get a permit for the pipeline project for more than five years. Since the northern leg of the pipeline crosses international borders, TransCanada needs to obtain a Presidential Permit through the State Department for construction of the portion of the pipeline that goes from Canada to

the U.S. “Quite frankly, we need a Presidential Permit for about 50 feet of pipe. If we weren’t crossing that border then we wouldn’t be having this conversation,” TransCanada representative Jim Prescott told StateImpact Texas in 2012. The northern segment, from Alberta to Texas, has been re-submitted for approval at the federal level. While the northern leg stalled, TransCanada went ahead on the southern leg.

Page 5: New base special  20  april 2014

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

Libya's Zawiya refinery ramps up output Reuters

Libya's Zawiya refinery has returned to pre-shutdown output levels at around 60 percent of capacity and is running Brega crude oil, a senior Libyan oil official said. The 120,000 barrels-per-day (bpd) refinery and port re-opened at the weekend after being shut down by opponents of the General National Council (assembly) for a few days.

The refinery, which supplies the capital and western Libya with petrol, cannot run at full capacity, because the El Sharara oilfield, which feeds it, has been closed since March by various local tribes. Negotiations are continuing between Tripoli and a federalist rebel group that has blocked Libya's two largest oil ports for the past nine months.

The Opec member's interim oil minister was optimistic about the first phase of a deal to reopen two ports and expected a return to Libya's normal pre-blockade output level if no new disruptions pop up. "The oil sector can reach goals of 1.4 million bpd on average in normal operating conditions if there are no (other)strikes that would lead to obstructions at fields and ports by strikers outside the oil sector," acting Oil Minister Omar Shakmak told Reuters.

He added that he could not give a timetable for the resumption as the oil ministry was not involved in the negotiations with Ibrahim al-Jathran, the leader of the federalist group blocking the ports. "The oil and gas ministry is not involved in this," he said, clarifying comments from an interview on Wednesday that he could not discuss politics.

He said the state oil protection force had so far given clearance only to restart exports at the Hariga port. The Zueitina oil port was still closed on Thursday despite the deal to reopen it along with Hariga, several Libyan oil officials said, as a separate group of citizens was also trying to negotiate new jobs

El Sharara

Page 6: New base special  20  april 2014

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

IEA slashes global oil demand growth forecast Source iea.org

The International Energy Agency (IEA) has revised upwards its forecast for global oil demand growth in 2014 to a modest 1.5 per cent on the back of a more robust outlook for global economic growth, a report said. The IEA now sees demand rising by 1.4 mbpd (or 1.5 per cent) this year to approximately 92.7 mbpd, from 1.3 mbpd (1.4 per cent) last month, said the latest NBK Economic Update.

This represents a modest acceleration on last year, as global oil demand is estimated to have grown by 1.3 mbpd in 2013. All demand growth is projected to come from emerging economies, with non-OECD Asia accounting for almost half of the global increase. Meanwhile, total Opec production (including Iraq) increased to above 31 mbpd for the first time in five months on the back of surging Iraqi output. Production in Iraq was boosted by a whopping 0.6 mbpd in February, lifting output to a modern-day high of 3.4 mbpd, thanks largely to the expansion of offshore export capacity. Previously, major bottlenecks at Iraq’s southern export terminals had limited the flow of Iraqi crude exports, said the NBK report. Moreover, the potential start-up of production from several major fields this year, including the West Qurna-2 field, which is expected to add an extra 120 kbpd initially to total production, should provide a sizeable boost to Iraq’s oil output in 2014. Non-Opec oil supplies are projected to increase by a significant 1.9 mbpd in 2014, following an estimated 1.4 mbpd last year. Around 200 kbpd is expected to come from Opec natural gas liquids (not subject to quotas).

This should come mainly from large increases in production from the US and Canada, which are expected to rise by a combined 1.2 mbpd in 2014, according to the NBK report.

Latest Highlights Crude oil prices were range-bound in March, with supply outages in the MENA and Russia-Ukraine tensions countering seasonally weaker demand. By early April, market expectations of an imminent restart of Libyan exports pressured Brent prices lower. Brent last traded at $107.75/bbl.

• The forecast of global demand growth has been marginally trimmed to 1.3 mb/d for 2014,

reflecting downward adjustments to the projection of Russian demand. The absolute demand estimate remains roughly unchanged, as upward revisions to baseline non-OECD Asian demand counterbalance

lower Russian growth.

• Global supplies plunged by 1.2 mb/d to 91.75 mb/d in March, led by steeply lower OPEC

output, but remained up by 1.1 mb/d year-on-year, as non‐OPEC growth of 1.98 mb/d more than offset

a near-1-mb/d drop in OPEC crude. Reduced FSU supply expectations helped cut the non-OPEC supply growth forecast by 250 kb/d, to 1.5 mb/d.

• OPEC crude oil supplies plummeted by 890 kb/d, to 29.62 mb/d, in March, on lower supplies from Iraq, Saudi Arabia and Libya. The ‘call on OPEC crude and stock change’ for the remainder of the year was raised by 300 kb/d to average 30.2 mb/d, reflecting a reduced forecast of non-OPEC supplies.

• Total OECD commercial oil inventories inched down by 6.5 mb in February, to 2 567 mb,

narrowing the deficit to their five-year average to 115 mb. Total industry stocks covered 29.4 days of demand at end-month. Preliminary data suggest that Japanese destocking helped slash OECD stocks

counter-seasonally by 31.1 mb/d in March.

• Global refinery crude demand is set to drop by 2.0 mb/d from February through April on planned maintenance in the Atlantic basin and the Pacific. Throughputs are set to average 75.9 mb/d in 2Q14, down from 76.4 mb/d in 1Q14, but up 0.9 mb/d on the year on higher runs in the US, Russia and

the Middle East.

Page 7: New base special  20  april 2014

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

Clog in global oil demand and supply equation http://www.saudigazette.com.sa-Economy

Interesting new developments are clogging the global energy demand-supply equation, impacting the overall scenario. Global oil demand is now projected to rise less in 2014 than previously thought, the International Energy Agency said last week. Demand growth will average 1.29 million barrels per day (bpd) in 2014, 60,000 bpd lower than its previous forecast, the IEA said in its latest monthly Oil Market Report.

“Downward adjustments to the forecast of Russian oil demand for 2014 helped trim the global demand growth estimate,” the report said. “Developments in Crimea have weakened Russia’s macroeconomic outlook.” And in the meantime, the implied oil demand of China, the emerging global energy heavy weight, fell 0.6 percent in the first quarter of the year, as a slowing economy dampened its energy use.

The demand growth in China is getting sluggish. "A slowdown in Chinese oil demand growth, that emerged mid-2013, has continued in line with the underlying macroeconomic trend. Demand for industrial fuels has been particularly soft," IEA said in its April report.

China's economy grew at its slowest pace in 18 months in the first quarter of 2014, official data revealed. China consumed roughly 9.79 million barrels per day (bpd) of oil last month, up just 0.7 percent from 9.72 million bpd a year earlier, calculations made by Reuters' based on preliminary government data

revealed. And for the first quarter of this year, oil demand fell from a year earlier to 9.96 million bpd, calculations revealed.

And while the issue of slowing demand growth is under spotlight, most seem to agree that output is on rise — virtually all around. The International Monetary Fund (IMF) is also pointing to a supply surge in North America. Combined, North American production growth is around 1.2 million barrels per day, from US shale oil and Canadian oil sands, the IMF said, asserting this growth was spilling over to the global marketplace.

A US Energy Information Administration reports says US oil production was anticipated to average 8.4 million bpd in 2014, a 14-percent increase from last year. And by next year, the US oil production is now being projected to touch a even higher 9.1 million bpd. Long-term, EIA says, US oil imports should continue to decline through 2036 and approach near zero through 2040.

Page 8: New base special  20  april 2014

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

US proven reserves of crude oil at year end 2012 were also estimated at 33.4 billion barrels, up 15.4% from 2011 and the highest since 1976, a report released on April 10 by the US Energy Information Administration said.

On the other hand, Canada's total crude oil output is also now expected to touch 3.9 million bpd in 2015, some 500,000 bpd more than the current output, driven primarily by small in-situ oil sands developments, each typically 35,000-40,000 bpd, Platts said quoting industry sources.

Oil sands output in Alberta is to account for 2.3 million bpd of the new barrels to be produced next year, followed by conventional light output in primarily Alberta and Saskatchewan at 1.4 million bpd and 200,000 bpd from eastern Canada, Beth Lau, manager of oil supply and markets with the Canadian Association of Petroleum Producers (CAPP) underlined at the CERI 2014 Oil Conference in Calgary.

Peter Howard, director of the Canadian Energy Research Institute was of the view that although a projected crude oil output of 3.9 million bpd next year is "certainly doable," 2015 will be a "critical" year as new pipelines that will assist in increasing the takeaway capacity of the heavy and light barrels of western Canadian crude are unlikely to be built by then, Platts reported.

In the meantime, Libyan crude is also slowly and gradually creeping back into the global markets. Agreement between the rebels and the central government in Tripoli has resulted in some oil export related activity at the export terminals in eastern part of the country. Libya's National Oil Co. lifted its force majeure notice from its Al-Hariga oil terminal, signaling a resumption of exports from the terminal.

And courtesy the opening of the giant, untapped, West Qurna-2 field in Iraq, the OPEC's second biggest producer after Saudi Arabia, has now been pumping crude at a 35-year high level of 3.4 million barrels a day, data compiled by Bloomberg said. The West Qurna-2 field, Iraq's second-biggest, brought online in collaboration with Russian Lukoil, is to produce 120,000 barrels per day of crude oil. The field in Southern Iraq near

Basra will eventually pump out 1.2 million bpd of oil. Courtesy the development, Iraq is now targeting to pump 4 million bpd by the end of the year. And in the backdrop of the ongoing nuclear negotiation with the US and its allies, Iran too raised its crude output last month to 2.9 million barrels a day, an increase of 65,000 barrels from February, data showed.

Beijing on the other hand, is signaling a renewed emphasis on finding and developing domestic energy resources. China's proven crude oil reserves finds in 2013 is reported to be touching 1.08

Page 9: New base special  20  april 2014

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

billion tons, exceeding the 1 billion ton mark for seven consecutive years, the Chinese Ministry of Land and Resources said earlier this year. Of the 2013 crude discovery, 202 million tons were technically recoverable crude, the ministry added.

Natural gas deposits also rose sharply, with new proven reserves totaling 616.4 billion cubic meters in 2013. The major contributor was PetroChina Co’s Anyue field in Sichuan Province, where over 400 billion cubic meters of new reserves were newly discovered. Of the new gas reserves, 381.9 billion cubic meters were technically recoverable.

New technology on horizon is also going to impact the global crude consumption. After decades of experiments, US Navy scientists are reporting to have solved one of the world's great challenges: how to turn seawater into fuel.The breakthrough came after scientists developed a way to extract carbon dioxide and hydrogen gas from seawater. The gasses are then turned into a fuel by a gas-to-liquids process with the help of catalytic converters.

The new fuel is initially expected to cost around $3 to $6 per gallon, according to the US Naval Research Laboratory, which has already flown a model aircraft on it. The development of a liquid hydrocarbon fuel could one day relieve the military's dependence on oil-based fuels and is being heralded as a "game changer" because it could allow military ships to develop their own fuel and stay operational 100 percent of the time, rather than having to refuel at sea.

US Energy Secretary Ernest Moniz in a 32-page report on the department's strategic plan is underlining the US economy needs a break from oil. "Although domestic oil production has increased to the extent that in 2012 net imports of petroleum fell to their lowest level in nearly 20 years, we must continue our efforts to develop alternative fuels and vehicles; as we are far from decoupling our economy from the global oil market," he said.

Moniz emphasized that a diverse energy mix may be one of the better ways to advance energy security in a way that keeps environmental issues at bay. The overall picture is not too rosy but rather confusing — from a producers' view — one can't help underlining!

Page 10: New base special  20  april 2014

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

Malaysia: Shell announces Malaysia deep-water gas discovery Source: Shell

Shell has announced an exploration discovery offshore Malaysia. The successful Rosmari-1 well is located 135 kms offshore in Block SK318, and was drilled to a total depth of 2,123 metres. The well encountered more than 450 metres of gas column. With further exploration planned, the finding is a positive indicator of the gas potential in an area of strategic interest for Shell.

'Rosmari-1 is a testament to our ability to successfully drill and build understanding of new geology within our existing exploration heartlands, adding value to our existing assets in Malaysia,' said Andy Brown, Director Shell Upstream International. 'We are expanding and rejuvenating heartlands across our exploration portfolio, including in Brunei, Australia and the Gulf of Mexico.'

'This adds to Shell’s sequence of recent exploration successes in Malaysia, with these discoveries expanding the company’s heartlands positions,' said Iain Lo, Chairman Shell Malaysia.

Block SK318 is Shell operated with an 85% interest, with the remaining 15% held by PETRONAS.

Page 11: New base special  20  april 2014

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

Total discovers oil in deep offshore Ivory Coast Source: Total

The Total-operated Saphir-1XB exploration well on Block CI-514 proved the presence of liquid hydrocarbons in the deep offshore west of Ivory Coast.

'Drilled in an abrupt margin play, this first well is the first discovery in the San Pedro Basin, a frontier exploration area in Ivory Coast,' commented Marc Blaizot, Senior Vice President, Exploration at Total. 'Having confirmed the presence of a petroleum system containing light oil, we will next evaluate this very promising find and focus on its extension to the north and east.'

Lying in 2,300 meters of water, Saphir-1XB is the first well in Block CI-514. It was drilled to a total depth of 4,655 meters, encountering around 40 meters of net pay containing light 34° API oil, in a series of 350 meters of reservoirs.

The data acquired during drilling are being analyzed and will be used to determine the area’s potential and design the delineation program. Total is pursuing its intensive exploration program in the area, with plans to drill two wells in Blocks CI-515 and CI-516 by year-end. Total E&P Côte d’Ivoire operates Block CI-514 with a 54% interest, alongside CNR International (36%) and PETROCI Holding (10%).

Page 12: New base special  20  april 2014

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

Oando pays increased deposit for ConocoPhillips deal offshoreenergytoday.com

Oando Energy Resources Inc. , a company focused on oil and gas exploration and production in Nigeria, has paid a previously agreed upon deposit of $25 million for the extension of the outside completion date for the acquisition of the Nigerian Upstream Oil and Gas Business of ConocoPhillips.

The $25 million deposit was required to be paid following the inability of the parties to obtain the consent of the Honourable Minister of Petroleum Resources in Nigeria prior to April 11, 2014.

Pursuant to an amendment agreement executed on March 27 2014, Oando Energy Resources and ConocoPhillips had agreed to extend the outside date for completion of the ConocoPhillips Acquisition from March 31, 2014 to April 30, 2014 to enable the companies to satisfy all closing conditions including the anticipated consent of the Honourable Minister of Petroleum Resources in Nigeria.

In consideration of this extension Oandp agreed to increase its deposit by $25 million on April 17, 2014, if the consent of the Honourable Minister of Petroleum Resources is not received on or before April 11, 2014.

About Oando :

Oando holds interests (directly and indirectly) in 15 licenses for the exploration, development and production of oil and gas assets located onshore, swamp, and offshore, our primary task is to harness optimally the potentials of our existing portfolio: Oando has prolific 2P reserves and 2C resources from a portfolio of Producing, development and exploration assets. DIRECTLY

Oando Plc holds interests in 3 licenses. It has a 60% and 95% Working interest in OPLs 278 and 236 respectively. The company is also a Nigerian Content Partner with AGIP Oil on OPL 282. INDIRECTLY

Following the Reverse Takeover of Exile Resources, Oando Plc holds 94.6% in Oando Energy Resources that is listed on the Toronto Stock Exchange. Oando Energy Resources holds interests in 11 licenses.

For full details on Oando Energy Resources, please go to www.oandoenegyresources.com

Our mission is to deliver sustainable value to stakeholders by continually growing reserves through the exploration, development and acquisition of Oil and Gas resources. Our growth has continued unabated throughout the global financial crisis due to the successful management and production of oil and gas reserves.

Page 13: New base special  20  april 2014

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in this publication. However, no warranty is given to the accuracy of its content . Page 13

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

[email protected] [email protected]

Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil &Oil &Oil &Oil & Gas sector. Currently working as Gas sector. Currently working as Gas sector. Currently working as 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 Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations pent as the Gas Operations pent as the Gas Operations pent 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 experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulating stations and in the engineering of supply ating stations and in the engineering of supply ating stations and in the engineering of supply ating 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 for OUs for OUs for OUs for

the local authorities. He has become a reference for many of the Oil & Gasthe local authorities. He has become a reference for many of the Oil & Gasthe local authorities. He has become a reference for many of the Oil & Gasthe 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 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 . . . .

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NewBase 20 April 2014 K. Al Awadi