NewBase Special 25 November 2015 Greetings, Attached FYI ( NewBase Special 25 November 2015 ) , from Hawk Energy Services Dubai . Daily energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:- • UAE: Borouge set to double output in petrochemicals • Oman: CB&I/CTCI Corp JV wins $2.8 bn Liwa Plastics project • Indonesia: CITIC spuds sixth well in Phase 3 development • S.Africa: From dung to Gas to power at green energy plant • U.S. energy-related CO2 emissions up 1% in 2014 as buildings, • Oil edges up further after big rally on increased Mideast risk • Carbon limits to put $2 trillion of coal, oil, gas projects at risk • The Upstream Investment Outlook of European Oil, Gas Firms we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :- khdmohd@hotmail.com or khdmohd@hawkenergy.net Best Regards. Khaled Al Awadi Energy Consultant & NewBase Chairman - Senior Chief Editor MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME meme since 1995 Hawk Energy since 2010

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NewBase 25 November 2015 - Issue No. 736 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Borouge set to double output in petrochemicals
The National + NewBase
Borouge, the UAE petrochemicals firm, is on track to double output over the next year amid a
challenging outlook for the industry worldwide on lower oil prices.
Wim Roels, the head of Borouge’s marketing arm, said yesterday at a launch in Abu Dhabi of the
plastics maker’s new innovation centre, that the company’s output would double compared with
last year. He said to expand, Borouge needed to invest while “managing costs carefully”.
“We are spending more than last year because we’re a growing company,” he said. “We cannot
give details, but the oil price is what it is today – around US$50 a barrel – so of course we’re
realistic. We’ll see how it develops.”
Total production capacity was expanded to 4.5 million tonnes per year from 2 million tonnes,
which Borouge said makes it “the largest integrated, single-sited polyolefins complex in the world”.
In January, Borouge said it would be able to reach maximum production capacity in phases by
2016.
The impact from the slump in crude prices began to be felt in the petrochemicals sector this year
as regional producers, including Sabic, joined oil majors in reporting diminished profits and
implementing cost-saving solutions.
However, Mr Roels said that polymer prices were not directly linked to the price of oil, although it
has added pressure. “Polymer prices have been very volatile over the past year,” he said. “Of

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course, a turbulent environment like this is always the challenge because prices are changing very
rapidly and significantly.” Borouge is a joint venture between Adnoc and Austria’s Borealis, which
is 64 per cent owned by Abu Dhabi’s Ipic.
Mark Garrett, the Borealis chief
executive, said that lower oil
prices improved its situation
because it lowered feedstock
costs. “Right now supply and
demand for polymers is
relatively balanced, but the
Americans are building a lot of
new capacity that will start up
in 2018,” he said, adding that production would not ramp up until 2019.
Mr Garrett said that the US would be forced to export its product to Latin America, Asia and
Europe, which would take away from Borouge’s customer base. Yet Borealis plans to invest more
into its UAE company to add a polymer plant with a capacity of “700 kilo tonnes”, he said.
Borouge inaugurates $70 million Innovation Centre in Abu Dhabi
Borouge inaugurated its Innovation Centre in Abu Dhabi yesterday to help to expand research and
innovation in the field of polymer development.
Abdulaziz Alhajri, the petrochemicals company’s chief executive, detailed how important the
centre was for the company and the UAE. “As manufacturers are investing in improving their
products while adhering to consumer tastes and new regulations, we must [also] be at the cutting
edge of innovation and work together with our partners to find solutions to market needs,” he said.
Borouge is a joint venture between Adnoc and Austria’s Borealis. The material developed at the
US$70 million facility can be used in a wide array of applications from plastic bags to the
automotive products. The Innovation Centre, which works in collaboration with other Borealis
centres in Europe, includes 16 plastics research labs as well as more than 230 pieces of
advanced testing
equipment.
Currently about 15 per
cent of sales come from
new products developed
at the centre, but the
company expects that
number to increase over
the next five years. By
that time, the centre
expects to have filed
about 750 patents, with
new products
accounting for about 1
million tonnes, or 25 per
cent of annual sales. The Innovation Centre employs approximately 70 people, with UAE
nationals making up one-third of that number.

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Oman: CB&I/CTCI Corp JV wins $2.8 bn Liwa Plastics project
Oman Observer + NewBase
A joint venture of US-based global energy infrastructure services giant CB&I and CTCI
Corporation, Taiwan, has received a notice of intention of award valued at approximately $2.8
billion from Oman Oil Refineries and Petroleum Industries Company (Orpic) to provide
engineering, procurement and construction for cracker Package 1, which includes the steam
cracker and associated utilities for the Liwa Plastics Industrial Complex Project in Sohar.
The scope of work includes EPC for a grassroots 880-ktpa ethylene plant, pygas unit and MTBE
unit, as well as all the related off-sites and utilities. CB&I’s scope of work also includes the
construction of cryogenic and atmospheric storage tanks and pipe spool fabrication.
The $5.2 billion Liwa Plastics venture will transform Oman’s presence in the international
petrochemicals marketplace as well as support the development of a downstream plastics industry
in the Sultanate. It will also create new business opportunities, and generate significant
employment opportunities.
Last month, Orpic had named Tecnimont, JV GS Engineering & Construction Corp / Mitsui & Co
Ltd and Punj Loyd as the preferred bidders for three of four packages for its Liwa Plastics
Industries Complex (LPIC) project.
The three packages include the Natural Gas Extraction Unit in Fahud, the NGL pipeline between
Fahud and Sohar and the three plastics plants in Sohar. Orpic said it intends to sign the final
Engineering Procurement & Construction “EPC” contracts after finalizing the agreements and
receiving Final Investment Decision on the project but before year-end.
Eleven strong bidders submitted financial tenders for the 3 considered packages and after a
thorough evaluation process the preferred bidders were presented to Orpic’s Major Tender Board.
The Tender Board studied the detailed bids and subsequently approved the names of preferred

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bidders. Detailed discussions are being held with the preferred bidders in order to finalize the
contracts.
As previously announced, the cracker will employ CB&I’s latest, proven ethylene technology,
including highly selective SRT cracking heaters, and its innovative recovery section design,
featuring low-pressure separation and mixed refrigeration.
“CB&I is pleased to have been selected for this significant project following the successful
completion of the front end engineering and design of the Liwa Plastics Project for Orpic,” said
Philip K Asherman, CB&I’s President and Chief Executive Officer. “This new award builds upon
the successful relationship between Orpic and CB&I and is a testament of our customer’s
confidence in our experience and world-class project execution capabilities.”
CB&I is an end-to-end energy infrastructure-focused company with 125 years of experience and
the expertise of approximately 54,000 employees.
CTCI Corporation, founded in 1979 with headquarters in Taipei, is the largest engineering,
procurement and construction firm in Taiwan. The service portfolio of CTCI includes engineering
design, procurement, fabrication, construction, supervision, project management, test and
commissioning.
Following commissioning of the overall project, plastics production is forecast to have increased
by more than 1m tonnes; giving Orpic a total of 1.4m tonnes of polyethylene and polypropylene
production. The operation will be one of the best integrated refinery and petrochemical facility
combinations in the world and will be able to achieve the maximum value add for Oman’s
hydrocarbon molecule.”
All relevant environmental permits have been obtained from the Ministry of Environment and
Climate Affairs, and all technical and commercial terms & conditions for supply of utilities, such as
electricity and cool water, have been finalized with Majees and Majan. Gas Supply Agreements,
are being finalized with the Ministry of Finance and Oil and Gas.

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Indonesia: CITIC spuds sixth well in Phase 3 development of the Oseil field in the Seram
Source: Lion Energy
JV partner Lion Energy has advised that the Oseil-22 development well has spudded and is
drilling ahead in 26 inch hole at a current depth of 100m MD. The Oseil-22 well is a development
well, targeting the Manusela limestone reservoir and intended to drain the northeast flank of the 4-
way dip closure of the Oseil-2 fault block with estimated recoverable oil reserves of 590,000 bbl.
The well will be the 24th drilled in the Oseil oilfield and the 12th in the Oseil-2 fault block. It will be
the 6th well drilled in the phase 3 Plan of Further Development (POFD), formally approved by the
Indonesian regulatory body, SKK Migas, on 5 May 2015. The POFD has thus far been very
successful, with 4 of 5 wells completed to date accounting for approx. 70% of the current daily
production rate of approx. 4100 bopd. The most recent well Oseil-28 is currently producing at
approx 830 bopd.
The Oseil-22 well is projected to add around 500 bopd of production. Following this well, the rig is
planned to drill the Oseil-23 location targeting an undrilled fault compartment in the west of the
overall Oseil-2 structure.
Lion has a 2.5% interest in the Seram (Non Bula) PSC, which is operated by CITIC Resources.
Commenting on the outcome of the POFD program to date and the prospect of the remaining 5
wells to be drilled in the program, including Oseil-22, Lion CEO Kim Morrison commented: 'The
Oseil oilfield production has been significantly enhanced by the POFD drilling to date and we look
forward to continuing success during the remainder of the program. Oseil-22 will be the last well in
2015 calendar year, with the remaining 4 development wells scheduled for the first half 2016.'
Crude oil lifting schedule
A crude oil lifting of
400,119 bbl was
completed on 8
September 2015 (Lion
share 10,003 bbl). Lion’s
share of revenue of
US$332,609 (before
First Tranch Petroleum)
was received on 30
October 2015. A final
lifting for the year in
excess of 400,000bbl is
expected to occur in
December 2015, with
receipt of funds net to
Lion approximately 35
days thereafter.
The Seram (Non Bula)
PSC, located Seram Island in eastern Indonesia, is operated by CITIC Seram Energy (51%) with
other co-venturers being KUFPEC (Indonesia) (30%) and Gulf Petroleum Investment
Company (16.5%). Lion has a 2.5% interest in the PSC.
• Oseil-22 development well spudded on 18
November 2015
• Oseil production was in excess of 4000 bopd during
November (~100bopd net to Lion)
• Revenue of US$332,609 from September oil lifting
received by Lion

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S.Africa: From dung to Gas to power at green energy plant
AFP + NewBase
Bronkhorstspruit, South Africa: Forty minutes east of South Africa’s capital Pretoria, amid the
lowing of thousands of cows and the strong stink of dung, a small factory has taken on the
challenge of turning manure into energy.
“Every day, 120 tonnes of manure and 66 tonnes of recycled paper are mixed in one of these
tanks,” Bio2Watt Project Manager Steven Roux said in the shadow of a looming 9,000 CM vat.
Also in the tank alongside the bacteria-rich dung is a steaming mix of old yoghurt, fruit juice and
abattoir waste, which bubbles away at 52 degrees Celsius for 22 days.
“It’s basically a huge living organism,” explained project creator Sean Thomas. “While the bacteria
is breaking down the waste, it’s producing methane gas, which is our primary fuel for our
combustion engine — similar to that of a car.”
The engine, in turn, is connected to an alternator. The result: 4.4 megawatts (MW) of electricity,
enough to power a village of about 1,500 people, said Thomas. A Briton now settled in South
Africa, it took Thomas eight years to go from bright idea to power production, which the factory
achieved in mid-October.

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On the farm next door, 40,000 cattle roamed about, chewing the cud that would become Thomas’
brown gold. The dung contributes only about a quarter of Bio2Watt’s output.
But in volume, it makes up 60 per cent of the potent sludge ripening in the hot tanks, containing
the vital bacteria needed to break the waste down into methane gas — the first project of its kind
in South Africa.
“There are other projects like this coming up now, but I think we created a precedent,” said
Thomas.
Bio2Watt’s 4.4 MW is a mere blip compared to the 40,000 MW of the national power provider
Eskom — but it does offer a decentralised solution in a country where 85 per cent of electricity
comes from ageing and failing centralised coal-fired power stations.
South Africa suffered frequent blackouts earlier this year as Eskom struggled to meet demand in
the cold winter months. And while the cow farmer next door didn’t have enough power to expand
his operation, he’s now able to tap into Bio2Watt’s supply. But the company’s primary client is a
plant belonging to German car manufacturer BMW in Pretoria.
“At present, (the plant) consumes around 12 megawatts per hour and about 30 per cent of that (3-
4 megawatts) per hour is generated by Bio2Watt — that is 30 per cent of green electricity,” said
Edward Makwana, Director of Communications for BMW South Africa.
Along with a 97 million rand ($6.79 million) injection from the French Development Agency, the
project also received a helping hand from a law enacted last year banning organic waste from
dump sites.
But Bio2Watt’s electricity comes at a higher price than Eskom’s.
While Thomas wouldn’t name an exact price, he insisted that in about three years it would be
competitive with the national provider, which has made repeated applications in recent years to
raise tariffs.
Even the leftover sludge is put to good use.
“Once the waste has gone through the process, the liquid is used to irrigate the surrounding
farming land and the solid is sold back to the farmers as a high quality fertiliser,” said Thomas. “It’s
a win-win situation.”

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U.S. energy-related CO2 emissions up 1% in 2014 as
buildings, transport energy use rises
Source: U.S. Energy Information Administration
U.S. energy-related carbon dioxide (CO2) emissions were 5,406 million metric tons (MMmt) in
2014, 1% (51 MMmt) above their 2013 level. Energy-related emissions also increased in 2013, but
because of declines in earlier years, the 2014 emissions were still roughly 10% below their 2005
level.
One approach to assessing emissions trends considers changes in demographic and economic
drivers, together with changes in the relationship between economic activity and energy use and
the carbon content of energy. Increases in economic activity, reflecting changes in population and
per capita output, tend to increase emissions.
Reductions in energy consumed per unit of economic activity or emissions generated per unit of
energy tend to reduce emissions. In 2014, U.S. gross domestic product (GDP) grew 2.4%, while
energy use per GDP and carbon per unit energy declined 1.2% and 0.3%, respectively.
Changes in energy-related emissions can also be analyzed by consuming sector. Emissions
attributed to energy use in the residential, commercial, industrial, and transportation sectors
tracked in EIA's data are measured by each sector's consumption of various fuels. In this
accounting, emissions associated with the generation of electricity are apportioned based on the
electricity consumption in each sector.
In 2014, energy-related CO2 emissions in the transportation sector were 24 MMmt higher than the
2013 level. Transportation fuel prices declined between 2013 and 2014. Lower prices, along with
continued economic recovery, led to higher gasoline consumption, along with higher consumption
of other fuels. The growth in energy consumption more than offset improvements in the fuel
economy of the vehicle fleet.

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Commercial sector CO2 emissions rose by 19 MMmt, while residential sector emissions increased
by 18 MMmt. Although residential sector energy use is mainly influenced by weather on a year-to-
year basis, commercial sector energy use reflects both weather and economic activity. Most of the
increase in energy use in the residential sector came in the first quarter of 2014, when heating
degree days (a temperature-based measure of expected heating demand) were 10% higher than
in 2013.
The industrial sector experienced an overall decline in energy-related CO2 emissions of 11 MMmt
in 2014 despite a 13 MMmt increase in natural gas emissions. Because natural gas has the lowest
carbon intensity of the fossil fuels, higher use of natural gas meant that more energy was being
delivered with fewer overall emissions compared to coal and petroleum liquids, the fuels it likely
replaced.
Source: U.S. Energy Information Administration, Annual CO2 Analysis

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NewBase 25 November - 2015 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil edges up further after big rally on increased Mideast risk
REUTERS + NEWBASE
Crude oil futures extended gains on Wednesday after prices hit two-week highs in the previous
session as tension mounted in the Middle East following Turkey's downing of a Russian warplane.
Brent LCOc1 extended its gains by 14 cents to $46.26 a barrel by 0443 GMT (1143 ET), reversing
an earlier fall on profit-taking. The benchmark had settled up $1.29 at $46.12 on Tuesday, after
hitting its highest since Nov. 11 at $46.50.
U.S. West Texas Intermediate (WTI)
futures CLc1 rose 4 cents to $42.91
a barrel. WTI finished up $1.12 on
Tuesday at $42.87, having touched
$43.46 during the session, also its
highest since Nov.11.
"In Asian hours you are seeing some
profit-taking ... but bullish sentiment
is continuing," said Daniel Ang, an
investment analyst at Phillip Futures
said, referring to the increased
geopolitical risk in the oil-producing Middle East.
"We expect economic data to further support this momentum," Ang said separately in a
Wednesday note.
Phillip Futures sees strong resistance for January Brent and WTI at $46.49 and $43.49,
respectively, which would likely be broken in the "most bullish scenario", the note also said.
Turkey shot down a Russian warplane near the Syrian border on Tuesday, saying the jet had
violated its air space. Russian President Vladimir Putin said the plane had been attacked inside
Syria and warned of "serious consequences" for what he termed a stab in the back administered
by "the accomplices of terrorists".
U.S. President Barack Obama and French President Francois Hollande, meeting in Washington,
urged against an escalation, while NATO Secretary-General Jens Stoltenberg said the military
alliance stood in solidarity with Turkey.
Obama and Hollande also pressed Russia on Tuesday to focus its attacks in Syria on Islamic
State (IS) militants.
Oil price special
coverage

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NewBase Special Coverage
News Agencies News Release 25 Nov.. 2015
Carbon limits to put $2 trillion of coal, oil, gas projects at risk
Reuters/Bret Hartman
Up to $2 trillion in petroleum and coal projects will not be needed if the world takes action to limit
warming of the planet to 2 degrees Celsius, according to a report released this week ahead of a
global climate summit in Paris.
The report adds to a string of studies warning investors that measures to curb carbon emissions
will hit earnings at coal, oil and gas companies as the world shifts to cleaner energy.
Europe's largest insurer, Allianz SE, this week joined a growing number of institutional investors
like California's pension funds and Norway's sovereign wealth fund, to sell off coal investments.
Analyzing industry databases, environmental think tank Carbon Tracker Initiative (CTI) found the
three biggest losers would be Mexico's Petroleos Mexicanos (PEMEX) [PEMX.UL], with $77 billion
in unneeded projects, Royal Dutch Shell, with nearly the same, and ExxonMobil with $73 billion in
potentially stranded projects.
Petroleum companies are worse off than coal companies as their projects are typically much more
expensive, it said.
Shell and ExxonMobil said they could not comment on the report as they had not seen it, but both
said the world will need oil and gas to help meet growing energy demand.
"All of ExxonMobil's current hydrocarbon reserves will be needed, along with substantial future
industry investments," spokesman Alan Jeffers said.
Shell, critical of previous Carbon Tracker reports, said investment is needed just to replace natural
decline in existing oil and gas fields. Pemex was not immediately available for comment.

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From the point of view of cutting carbon emissions, coal producers are much more vulnerable as
the carbon saved by not developing their projects is much greater, Carbon Tracker said.
However, from an investor viewpoint, oil companies faced a higher risk given the greater cost of
their projects, said Mark Fulton, a former investment banker who worked with CTI on the research.
He pinpointed two "carbon basins" - oil sands in Canada and the Galilee Basin in Australia, where
two Indian conglomerates are looking to dig mines - as regions whose assets will not be needed.
In a separate report released on Monday, another non-profit think tank, CDP, ranked Glencore Plc
as the worst prepared for a low carbon economy among 11 major listed miners, based on
measures including energy efficiency, resilience to water shortages, exposure to coal and carbon
price exposure.
Glencore said it was disappointed with the findings and said its climate change scores from CDP
had improved over a number of years, beating the industry average in an earlier CDP report.

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The Upstream Investment Outlook of European Oil, Gas Firms
by Rigzone - Andreas Exarheas
Following a continued low oil price that has seen the value of Brent hover at around $50 per barrel
in recent months, compared to figures of more than $100 per barrel in 2014, a range of European
oil and gas firms have reacted by decreasing their upstream investment.
French oil and gas company Total S.A. announced a significant reduction in upstream spend
Sept. 23, when it revealed its plan to slash its capital and operating expenditure by billions of
dollars within the next two years.
The energy major, whose capital expenditures (CAPEX) hit a peak of $28 billion in 2013, is
currently working on reducing its CAPEX to $23/24 billion in 2015 and intends to further reduce
investment down to $20/21 billion in 2016, before “returning to a sustainable level of $17-19 billion
from 2017 onwards”, according to a company statement. Total’s operating expenditure reduction
target increased by 50 percent, from $2 billion to $3 billion by 2017, after the company managed
to achieve 66 percent of the initial annual $1.2 billion savings target at the end of the first half of
this year.
Total also outlined its ambition to grow organically at 1 to 2 percent per annum post 2020,
although analysts at Tudor, Pickering, Holt & Co International believed this aim was “questionable
on the lower CAPEX target”.
Spanish oil giant Repsol S.A. followed in Total’s footsteps and stated in its 2016-2020 Strategic
Plan Oct. 15 that it would be scaling back its upstream investment over the next five years. The
company announced that its exploration and production unit will focus on just three core regions
over the next half decade – North America, Latin America and South East Asia – and revealed
that upstream capital expenditure will be cut by around 40 percent compared to 2014 levels.
Repsol will also aim to sell off more than $7 billion worth of non-strategic upstream and
downstream assets by 2020. In the company's previous Strategic Plan, which covered 2012 to
2016, Repsol targeted upstream activity in additional regions, including Europe and Africa, and
aimed to inject around $3.6 billion into its upstream unit per year. Investment bank Jefferies said it
saw Repsol’s latest plan as "positive" and noted that the firm's "ambitious strategy" should bring
its debt down to levels that are more in line with its peers by 2017/2018.
British oil and gas firm BP plc followed the trend of reducing future capital expenditure by
lowering its CAPEX to between $17-19 billion a year through to 2017. The group’s 2015 CAPEX is
expected to come in at $19 billion, despite predictions in the region of $24-26 billion a year ago.
Total divestments since October 2013 are anticipated to hit the $10 billion mark by the end of
2015 and BP expects to agree a further $3-5 billion worth of divestments next year, before
returning to a rate of around $2-3 billion a year thereafter. BP stated in its 3Q results that
proceeds from these divestments will help it manage “continuing oil price volatility”.

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Norway’s largest oil company, Statoil ASA, has scrapped four years’ worth of drilling in less
than 18 months by cancelling or suspending rig contracts, according to Bloomberg calculations
based on Statoil statements, and the energy firm has delayed the production start-up of the Aasta
Hansteen and Mariner fields from 2017 to the second half of 2018. In its 3Q results released Oct.
28, which were described as “weak” by analysts at Jefferies, Statoil said that it was cutting its
capital expenditure by $1 billion to $16.5 billion in 2015 and confirmed that it will be delivering
efficiency improvements with pre-tax cash flow effects of around $1.7 billion from 2016. In June of
this year, the company also revealed that up to 1,500 employees and more than 500 consultants
could be let go by the end of next year.
In another show of decreased upstream investment among European oil and gas firms, Eni’s
exploration and production segment reduced its capital expenditure by 19 percent year on year in
the third quarter of 2015 to $2.34 billion, compared to 2.91 billion in 3Q 2014.
Announcing its intentions for upstream spend in the future, the Italian major stated in its 3Q
results Oct. 29 that it will carry out “efficiency initiatives”, relating to operating costs, and aim to
“optimize investments” in order to cope with the negative impact of a lower oil price environment.
British oil and gas company, BG Group, announced in its 3Q results Oct. 30 that its cash capital
expenditure in 2015 is expected to be around $6.5 billion, which is roughly 30 percent lower than
2014, due to the lower oil price and the energy firm also revealed that its 2015 cost and efficiency
program is on track to deliver “at least” $300 million in savings this year.
Anglo-Dutch major Royal Dutch Shell plc, which expects to finalize a deal to acquire BG Group
in early 2016, followed the declining upstream spend trend and stated Nov. 3 that it was “pulling
all levers to manage through the current oil price downturn” including a 10 percent reduction in
operating costs and a 20 percent reduction in capital spending in 2015, totalling $11 billion.
The firm has also cut its workforce by more than 7,000 people so far in 2015 and identified a
further $1 billion of pre-tax synergies to bring cost savings from combining its business with BG to
a total of $3.5 billion by 2018. Shell also announced Oct. 27 that it would shelf an oil sands project
in Alberta, which it had already invested billions of dollars in, and decided in late September to
cease exploration activity offshore Alaska, taking a large financial hit in the process.
Austrian oil and gas firm OMV’s upstream capital expenditure reduced 39 percent year on year
to $538 million in the third quarter of 2015, from $884 million in 2014, with the group’s total
exploration expenditure decreasing to $153 million in 3Q 2015. OMV’s exploration spend was 37
percent lower than last year’s figure during the same period, mainly due to the company’s lower
activity levels in New Zealand and Norway.
In addition to announcing in October that the company will reduce its overall global workforce by
10-12 percent, Danish oil and gas firm Maersk Oil revealed Nov. 6 that it expects its exploration
costs in 2015 to be almost $300 million lower than last year, due to a reduction in exploration
activity.
The company anticipates that its exploration spend in 2015 will come in at around $500 million,
which marks a significant decrease from the $765 million the company spent last year on
exploration, and stated that its exploration activities have been reduced “in light of the oil price
expectations” and the firm’s “disappointing” exploration results over the past couple of years.

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Going against the trend of shrinking upstream expenditure, Russia’s Gazprom revealed Oct. 20
that it will increase its investment spend in 2015 by $3.70 billion. Despite this increase however,
Gazprom is also implementing a cost optimization program for 2015 with expected cumulative
savings of $270 million.
Hungarian oil and gas company MOL Group’s upstream segment also decided to go against the
tide by increasing its CAPEX and investments by 31 percent year on year to $263.43 million in 3Q
2015, up from $198.61 million the year before, although the business did post a 99 percent
reduction in operating profit, year on year.
Upstream investment among European oil and gas firms certainly appears to be declining in the
face of a continued low oil price, despite certain energy firms trying to buck this trend. It’s difficult
to predict the direction of prices in the near future, but if they continue to go down, the industry
could see an even greater reduction in upstream spending.

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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
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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 25 November 2015 K. Al Awadi

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