1.
Copyright © 2022 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 endeavors 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 Energy News 04 February 2023 No. 1590 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Adnoc signs $4.63bn deals to boost manufacturing sector
Trade Arabia + NewBAse
Abu Dhabi National Oil Company (Adnoc) has announced that it has signed agreements with 23
UAE and international companies in bid to boost local manufacturing opportunities across a wide
range of critical industrial products worth AED17 billion ($4.63 billion).
These agreements outline the intention of the companies to manufacture the industrial products in
UAE, supporting the ‘Make it in the Emirates’ initiative and the ‘Abu Dhabi Industrial Strategy’, said
Adnoc in its statement.
ww.linkedin.com/in/khaled-al-awadi-80201019/

2.
Copyright © 2022 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 endeavors 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
The products are part of the AED70 billion ($19 billion) worth of products in Adnoc’s procurement
pipeline that the company identified for domestic manufacturing in July 2022, it stated.
Adnoc continues to encourage the private sector to capitalise on the commercial opportunities for
domestic manufacturing across its value chain through its In-Country Value (ICV) programme, as it
expands and decarbonises its operations, it added.
Adnoc Director (Commercial & In-Country Value Directorate) Dr Saleh Al Hashimi said the group is
creating long-term domestic manufacturing opportunities from its procurement pipeline to enhance
the UAE’s industrial base.
"We are also strengthening the resilience of the group's supply chains as we make today’s energy
cleaner and invest in the clean energies of the future."
These agreements reinforce our role as a critical engine for the UAE’s industrial growth, and they
offer significant potential to further increase our GDP contributions, stimulate economic
diversification and create more skilled job opportunities for UAE Nationals. We look forward to
working with these companies to deliver on these important agreements and drive more sustainable
value to the UAE.”
Last year, Adnoc signed agreements for local manufacturing commitments worth over AED25 billion
($6.8 billion) with UAE and international companies. The company continues to take a transparent
approach to showcasing its product outlook as part of its ICV programe.-TradeArabia News Service

3.
Copyright © 2022 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 endeavors 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
Iraq: TotalEnergies staff return to Iraq as dispute is resolved
The National + NewBase
The dispute between French energy major TotalEnergies and Iraq over $27 billion worth of projects
has been settled, with the company's staff returning back to Baghdad, reports say. TotalEnergies'
foreign staff have returned to Iraq and everything is back to normal, two ministry sources told
Reuters on Friday.
In 2021, Iraq signed an agreement with TotalEnergies to develop oil and gas and renewable energy
projects worth $27 billion. TotalEnergies said at the time that it would make an initial investment
of $10 billion in the country.
Iraq reportedly wanted to take a 40 per cent stake in the projects, as opposed to the 25 to 30 per
cent stake proposed by TotalEnergies. The French company had begun to withdraw staff from Iraq
due to the disagreement, Iraq Oil Report said this week.
However, a representative for the oil ministry told The National on Thursday that the government
supports the deal. “We have no problems with TotalEnergies and our relations are good and
growing,” the representative said.
“There are some differences including the shares in the project and time has been given to continue
the talks to reach a solution that is acceptable to concerned parties.
“Both sides are keen to move forward to reach [an] agreement in a way that benefits their interests,”
the representative added. Opec’s second-largest producer Iraq depends on oil revenue to meet 90
per cent of government expenditure.
The country exports about 3.3 million barrels of oil per day, while production in the semi-autonomous
Kurdish region amounts to more than 450,000 bpd.

4.
Copyright © 2022 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 endeavors 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
U.S. proved reserves of crude oil increased significantly
source: U.S. Energy Information Administration, Proved Reserves of Crude Oil and Natural Gas in the United States, Year-End 2021
In 2021, U.S. proved reserves of crude oil and lease condensate increased 16% from 2020, totaling
44.4 billion barrels, according to our recently released Proved Reserves of Crude Oil and Natural
Gas in the United States, Year-End 2021 report.
Proved reserves decreased 19% in 2020 because of pandemic-related constraints on crude oil
demand and production. In 2021, however, demand for petroleum and natural gas returned, prices
rose, and proved reserves increased.
In 2021, proved reserves of crude oil and lease condensate increased in each of the five states with
the most U.S. oil reserves. Two of these states, New Mexico and Alaska, set new state records for
proved reserves.
Proved reserves are operator estimates of the volumes of oil and natural gas that geological and
engineering data demonstrate, with reasonable certainty, to be recoverable in future years from
known reservoirs under existing economic and operating conditions.
Data source: U.S. Energy
Information
Administration, Proved
Reserves of Crude Oil and
Natural Gas in the United
States, Year-End 2021

5.
Copyright © 2022 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 endeavors 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
Texas is the state with the largest volume of proved reserves of crude oil and lease condensate,
and in 2021 it had the largest net increase in proved reserves in the United States.
Proved reserves of crude oil and lease condensate increased 12%, or 1.9 billion barrels, in Texas
during 2021 and reached 18.6 billion
barrels, which was slightly less than
the state's 2019 record high. Proved
reserves in New Mexico increased
39%, or 1.4 billion barrels, which
was the second-largest increase on
record for any state.
The Wolfcamp/Bone Spring
shale play in the Permian Basin
remains the largest oil-producing
shale play in the United States, and
it sits on the border of Texas and
New Mexico. To learn more about
production areas, see our series of
maps of major U.S. shale plays.

6.
Copyright © 2022 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 endeavors 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
Saudi, France to boost co-operation in nuclear energy sector
Trade Arabia + NewBase
Saudi Arabia has announced the signing of an agreement with French authorities on the peaceful
use of nuclear energy and future opportunities in various energy fields, including renewable energy,
clean hydrogen and electricity interconnection.
The pact was signed by Prince Abdulaziz Bin Salman, Minister of Energy, with the visiting French
Minister of Foreign Affairs Catherine Colonna at a special ceremony held in capital Riyadh,
reported SPA.
The two leaders agreed to work for the establishment of a framework for collaboration in the energy
sector.
The MoU encourages co-operation between the two countries in the fields of electricity, renewable
energy, energy efficiency, energy storage, smart grids, oil and gas and their derivatives, refining,
petrochemicals, and the distribution and marketing sectors.
This will further the collaboration in technologies, with an aim to mitigate the effects of climate
change, such as carbon capture, utilization and storage (CCUS) in hard-to-abate sectors, and the
production of hydrogen, as well as other technological innovations, reported SPA.
The MoU also promotes cooperation in digital transformation, localization of materials, products and
services in the energy supply chain, collaboration between companies in the energy sector, joint
research in universities, research centers and other forums, as well as building human capacity
through training and exchanging of experience in the energy sector.

7.
Copyright © 2022 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 endeavors 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
NewBase February 04 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil falls about 3% as strong U.S. jobs data prompt interest rate concerns
Reuters + NewBase
Oil prices fell to over three-week lows on Friday in a volatile session, after strong U.S. jobs data
raised concerns about higher interest rates and as investors sought more clarity on the imminent
EU embargo on Russian refined products.
Brent crude futures fell $2.23, or 2.7%, to $79.94 a barrel, after rising to a session high of $84.20.
It hit a session low of $79.72, its lowest since Jan. 11. U.S. West Texas Intermediate crude (WTI)
ended down $2.49, or 3.3%, at $73.39, after trading between $78.00 and $73.13, its lowest since
Jan. 5.
Brent registered a 7.8% decline this week while WTI dropped 7.9%.
U.S. job growth accelerated sharply in January amid a persistently resilient labour market, but a
further moderation in wage gains should give the Federal Reserve some comfort in its fight against
inflation.
Oil price special
coverage
• Brent and WTI post weekly declines of nearly 8%
• U.S. reports blowout job growth
• EU agrees on price caps on Russian refined oil products
• Russia says EU oil products ban will unbalance markets

8.
Copyright © 2022 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 endeavors 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
"The market can't decide whether it should be nervous about a recession or more worried about the
Federal Reserve being aggressive with interest rates," said Phil Flynn, analyst at Price Futures
Group.
The U.S. central bank on Wednesday scaled back to a milder rate increase than those over the past
year, but policymakers also projected that "ongoing increases" in borrowing costs would be needed.
Increases in interest rates in 2023 are likely to weigh on the U.S. and European economies, boosting
fears of an economic slowdown that is highly likely to dent global crude oil demand, said Priyanka
Sachdeva, market analyst at Phillip Nova.
European Union countries agreed to set price caps on Russian refined oil products to limit Moscow's
funds for its invasion of Ukraine, the Swedish presidency of the EU said on Friday. read more
EU diplomats said the price caps are $100 per barrel on products that trade at a premium to crude,
principally diesel, and $45 per barrel for products that trade at a discount, such as fuel oil and
naphtha.
The Kremlin said the EU embargo on Russia's refined oil products would lead to further imbalance
in global energy markets.
Meanwhile, ANZ analysts noted a sharp jump in traffic in China's 15 largest cities after the Lunar
New Year holiday but said that Chinese traders had been "relatively absent."
In U.S. supply, energy firms this week cut the number of oil and natural gas rigs by the most since
June 2020, energy services firm Baker Hughes Co (BKR.O) said. U.S. oil rigs fell 10 to 599 this
week, their lowest since September, while gas rigs dropped by two to 158.
The U.S. Commodity Futures Trading Commission said on Thursday that as a result of the
ransomware attack on ION Trading UK, the CFTC's weekly Commitments of Traders report will be
delayed until all trades can be reported. CFTC reports provide a snapshot of investor positioning on
various assets, including oil.
Stocks tumble, U.S. bond yields rise on strong jobs report
Reuters
A gauge of global stocks dropped more than 1%, while U.S. Treasury yields and the dollar rose on
Friday after a shockingly strong U.S. jobs report renewed concerns the Federal Reserve may remain
aggressive in its path of interest rate hikes as it tries to tame inflation.
The report from the Labor Department showed nonfarm payrolls surged by 517,000
jobs in January, well above the 185,000 estimate of economists polled by Reuters,
with data for December also being revised higher. Average hourly earnings increased
0.3%, as expected, down from the 0.4% in the prior month, while the unemployment
rate of 3.4% was the lowest since 1969.

9.
Copyright © 2022 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 endeavors 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
Equities have rallied to start the year on expectations the Fed may be forced to pause or even pivot
from its rate hikes in the back half of the year, growing more confident after comments from Fed
Chair Powell on Wednesday that acknowledged the "disinflationary" process may have begun.
Additional fuel was added after policy announcements by the European Central Bank (ECB) and
Bank of England (BoE) on Thursday.
"While it is very helpful to see the jobs increasing, it is really a horse race between that ongoing
income and how quickly inflation comes down," said Lisa Erickson, head of public markets group at
U.S. Bank Wealth Management in Minneapolis, Minnesota.
"The Fed really is in a tough place trying to navigate between keeping those price pressures down
and not causing too much economic pain."
Interest rate futures now indicate the Fed is likely to deliver at least two more rate hikes, taking the
benchmark rate to above 5%.
U.S. stocks closed lower, with additional downward pressure being supplied by a 2.75% decline
in Google parent Alphabet (GOOGL.O) and an 8.43% drop in Amazon (AMZN.O) after their
quarterly results.
Apple (AAPL.O), however, helped prevent further declines, as the stock erased losses in premarket
trading to close 2.44% higher following its quarterly earnings.
Earnings are now expected to decline 2.7% for the quarter from the year-ago period, according to
Refinitiv data, down from the 1.6% fall expected at the start of the year.

10.
Copyright © 2022 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 endeavors 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
Other data showed the U.S. services industry rebounded strongly in January, according to the
Institute for Supply Management (ISM).
The Dow Jones Industrial Average (.DJI) fell 127.93 points, or 0.38%, to 33,926.01; the S&P
500 (.SPX) lost 43.28 points, or 1.04%, to 4,136.48; and the Nasdaq Composite (.IXIC) dropped
193.86 points, or 1.59%, to 12,006.96.
Even with Friday's declines, both the S&P 500 and Nasdaq notched weekly gains, with the Nasdaq
securing a fifth straight week of gains, its longest since October-November 2021.
European stocks closed modestly higher, erasing earlier declines on optimism over the region's
economy. The pan-European STOXX 600 index (.STOXX) rose 0.34%, but MSCI's gauge of stocks
across the globe (.MIWD00000PUS) shed 1.08%. The STOXX index closed with a 1.23% gain on
the week, its highest closing level since April 21. MSCI's index was on track for a second straight
weekly advance even with Friday's tumble.
U.S. Treasury yields climbed after the payrolls report, with those on the benchmark 10-year note up
13 basis points to 3.528%, from 3.398% late on Thursday, poised for their biggest one-day jump
since Oct. 19.
The greenback strengthened in the wake of the data, climbing off a nine-month on Thursday to hit
103.01, its highest since Jan. 12, as the dollar index rose 1.149% and the euro was down 1.02% to
$1.0799.
The Japanese yen weakened 1.90% to 131.18 per dollar, while Sterling was last trading at $1.2053,
down 1.39% on the day. Crude prices turned lower in part due to strength in the dollar and concerns
about higher interest rates, with Brent and WTI both dropping nearly 8% on the week.
U.S. crude settled down 3.28% at $73.39 per barrel and Brent settled at $79.94, down 2.71% on
the day.

11.
Copyright © 2022 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 endeavors 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
NewBase Specual Coverage
The Energy world –February -01 -2023
CLEAN ENERGY
GCC Oil Refiners Struggle to Be Ready as EU Bans Russian Fuels
 Saudi Arabia, Kuwait and Oman are each finishing refineries
 The UAE is aiming to boost diesel supplies to France, Germany
Bloomberg - Anthony Di Paola + NewBase
Europe’s looming ban on almost all Russian fuel is sparking a scramble for alternatives, not least
from Middle Eastern petrostates.
Yet three new refineries in Saudi Arabia, Kuwait and Oman that could go a long way to helping
Europe replace 600,000 barrels a day of Russian diesel have faced numerous delays. None of them
is yet at full capacity and there could be even more hold ups.
“Middle East refining projects are subject to commissioning delays,” said Ahmed Mehdi, a
commodities analyst in London with Renaissance Energy Advisors. “Europe won’t benefit from the
additional barrels until late 2023.”

12.
Copyright © 2022 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 endeavors 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
The European Union is set to ban all seaborne imports of refined fuels from Russia, by far its biggest
supplier, on Sunday. That covers products from jet fuel to gasoline and diesel.
New Refineries in Saudi Arabia, Kuwait and Oman Have Faced Delays
Here’s a summary of the Middle Eastern refineries Europe that could eventually help Europe make
up for lost Russian supplies.
Kuwait — Al Zour
Kuwait plans to boost diesel flows to Europe fivefold this year to 50,000 barrels a day and double
shipments of jet fuel. It will manage that by increasing output at its massive 615,000 barrel-a-day Al
Zour refinery.
Kuwait to Send Europe Five Times More Diesel as Russia Ban Looms
Once the plant is operating at full capacity, it should be able to produce about 145,000 barrels of
low-sulfur diesel a day, according to consultancy FGE.
The plant has cost more than $15 billion and has a tortured history. The original plans were
scrapped more than a decade ago. It eventually started last year, around two years late. The state
energy company expects to start the second of three lines this month and the final one in April.
Saudi Arabia — Jazan
Saudi Aramco’s Jazan refinery in the southwest of the kingdom is designed to process 400,000
barrels of crude each day and produce fuels meeting stringent European emissions specifications.
The facility is still being ramped up and, while it’s exported some products, it’s yet to send any diesel
that meets those requirements to Europe, according to Vortexa Ltd., an energy consultancy.
Aramco initially planned to start it in 2017, before later saying it would be at full capacity in the
second half of 2020.

13.
Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 13
Saudi, Kuwait Oil Refinery Expansions Set to Ease Diesel Crisis
Jazan is located far from Saudi Arabia’s vast oil fields in the east, and has to be supplied with crude
via tankers instead of a pipeline. It’s also close to the border of war-torn Yemen, leaving it “especially
vulnerable” to drone strikes should Iran-backed Houthis decide to target the kingdom again,
according to investor-advisory firm Greenmantle.
Oman — Duqm
Oman and Kuwait are building a 230,000 barrel-a-day refinery at Duqm on the former’s Indian
Ocean coast. They initially targeted a 2020 start, but that’s been delayed until later this year. Most
oil traders covering the Middle East don’t expect the first shipments until at least the end of 2023.
UAE — Ruwais
The UAE, OPEC’s biggest oil producer after Saudi Arabia and Iraq, is trying to raise diesel volumes
bound for France and Germany by about 100,000 barrels a day in 2023. It will use its existing
refinery at Ruwais for that.
Abu Dhabi National Oil Co. increased capacity at the facility on the Persian Gulf coast to more than
900,000 barrels a day last year.
“To replace Russian supplies, Europe is increasingly turning to producers in the Middle East,”
analysts at JPMorgan Chase & Co., including Natasha Kaneva, said in a note to clients.
Gulf Refiners Eye Record 2021 Capacity Boost With Completion Of Delayed Mega-Projects
2021 is set to see a record 1.4mn b/d boost to Gulf refining capacity as eight new projects, some
heavily delayed, come onstream. Kuwait and Saudi lead the gains.
Gulf refiners are undertaking 12 new
projects and upgrades with a combined
capacity of just shy of 4mn b/d. These
include a refinery with the region’s largest
crude distillation unit (CDU), expansions
and upgrades to improve produced fuel
quality, and an innovative project to convert
crude directly into chemicals.
The projects will increase the region’s
crude and condensate processing capacity
by 2.71mn b/d in total, since four include
renovation of existing plants. After
extensive delays, up to eight projects are to reach commercial operation in 2021 adding
a total of 2.19mn b/d of new and upgraded primarily distillation capacity, a record 1.39mn
b/d of net additions (see table).
Though the two largest elements of these additions have been heavily delayed –
Kuwait’s new Al Zour refinery and the separate Clean Fuels Project upgrade to existing
plants, and Saudi Arabia’s new Jazan refinery on the Red Sea coast – both are now set
to see full start-up in 2021. All told this should boost the region’s primary distillation
capacity from 9mn b/d now to almost 10.4mn b/d by the end of 2021 (see chart).

14.
Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 14
ALL FIGURES ARE END-YEAR AND RELATE TO PRIMARY DISTILLATION CAPACITY
(CRUDE PLUS CONDENSATE).
Kuwait’s $12bn clean fuels project (CFP) upgrade of the Mina al-Ahmadi (MAA) and Mina
Abdullah (MAB) refineries will raise their combined CDU capacity from 736,000 b/d to
801,000 b/d and enable production of fuels to Euro 5 specifications.

15.
Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 15
State refiner KNPC started up the last two units at 347,000 b/d MAA in April. It started
up the second of two CDUs at 454,000 b/d MAB in November, but is working on
upgrading units into 2021.
2021 is also likely to see start-up of the $13bn newbuild 615,000 b/d CDU refinery at Al
Zour. Fellow state firm Kipic took delivery of a first shipment of crude in December in
preparation for Al-Zour commissioning. While the refinery could be largely operational by
the end of 2021, a decision to expand its planned residue fluid catalytic cracker after
project construction was under way may delay full operation .
Multi-year delays at both Al Zour and the various CFP elements are symbolic of Kuwait’s
chronically poor governance and project delivery record. Will the start ups together with
the emirate’s new leadership be able to usher in a new chapter in 2021?
The other key (delayed) start-up now slated for 2021 is the 400,000 b/d refinery and
4GW integrated gasification combined cycle (IGCC) power plant Saudi Aramco has built
at Jazan on the Red Sea coast.
Construction work is now complete but the start-up date remains uncertain – Aramco
says the plant “is expected to be ready for full operations in the first half of 2021”
A recent extensively-researched Financial Times report detailing cost-cutting and alleged
substandard quality control at Jazan tallies with comments made by chief EPC contractor Técnicas

16.
Copyright © 2022 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 endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 16
Reunidas earlier this year. “[If] we had to do it again. We would have done it differently with
contractors, suppliers, subcontractors. I think everybody has made a lot of mistakes in this job,”
CEO Juan Lladó told a 30 July earnings call, adding that “Jazan has been… a nightmare for the last
8 years” .
Jazan development has been complicated by its geographical isolation, far from Saudi Arabia’s oil
heartland in the Eastern Province – crude deliveries to the plant will have to be made by sea via
both the Straight of Hormuz and Bab al Mandal chokepoints (see map). This, as well as the fact the
plant itself is just 50km from the Yemen border, leaves the plant highly exposed to attacks from
Yemen’s Iran-backed Houthi rebels
The Jazan facilities’ isolation also in part led to a sophisticated design whereby the refinery itself is
integrated with a $11.5bn, 4GW integrated gasification combined cycle (IGCC) power plant and
associated air separation unit. A planned joint venture between Aramco, US gases firm Air Products
and Saudi private firm Acwa Power to run the IGCC plant is still negotiating over project financing.
IRAQ: FINGERS CROSSED
Less technically sophisticated, but even more exposed to geopolitical headwinds, is the long-
planned expansion of Iraq’s refining capacity. Iraq’s refining capacity is about 750,000 b/d, with
expansion work and war damage repairs being slowed by a lack of funds available to pay
contractors.
The Ministry of Oil recently said that Hyundai’s 140,000 b/d greenfield Karbala refinery is in “very
advanced stages of competition” suggesting it could hit its end-2021 completion target). The ministry
is also awaiting completion of a 70,000 b/d new CDU at Basra by Czech contractor TechnoExport
(: whilst MEES has included this in the figures for possible 2021 expansions, this may well prove
generous.
Certainly expecting all three of Karbala, the Basra CDU and the ongoing rebuild of one of the two
70,000 b/d Salahuddin units at the Baiji refinery in the north of the country, to come online in 2021
is highly improbable. Indeed, with IS launching renewed attacks in the vicinity of Baiji – including on
the nearby Sininya topping refinery changes to Iraq’s effective refining capacity could be down as
well as up in 2021.
Looking further forward, Iraq’s oil ministry has awarded Japan’s JGC a $4bn project to revamp the
existing 210,000 b/d Basra refinery for 2024 start-up Oil RefineriesIRAH

17.
Copyright © 2022 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 endeavors 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 17
The region’s other planned 2021 expansions are in the UAE. Dubai’s Enoc is nearing completion of
a $1bn third 70,000 b/d condensate splitter at Jebel Ali. EPC contractor France’s TechnipFMC
completed final testing in April, but no start-up announcement has followed, suggesting delays. At
contract award in 2016 Enoc was anticipating start-up in 4Q19.
In Fujairah, meanwhile, the focus has been on small modular refineries. Local firm Ecomar started
up one such plant earlier this year, whilst Brooge Energy plans a similar 25,000 b/d plant in the
second half of next year.
9 new refinery projects to come online before end of 2023 in Asia and Middle East; 2.9 MMb/d
In Asia and the Middle East, at least nine refinery projects are beginning operations or are scheduled
to come online before the end of 2023, according to the US Energy Information Administration (EIA).
At their current planned capacities, they will add 2.9 million barrels per day (MMb/d) of global refinery
capacity once fully operational.
In the International Energy Agency’s (IEA) June 2022 Oil Market Report, the IEA expects net global
refining capacity to expand by 1.0 million b/d in 2022 and by an additional 1.6 million b/d in 2023.
Net capacity additions reflect total new capacity minus capacity that has closed.
The scheduled expansions follow a period of reduced global refining capacity. Net global capacity
declined in 2021 for the first time in 30 years, according to the IEA. The new refinery projects would
increase production of refined products, such as gasoline and diesel, and in turn, they might reduce
the current high prices for these products.
China’s refinery capacity is scheduled to increase significantly this year. The Shenghong
Petrochemical facility in Lianyungang has an estimated capacity of 320,000 b/d, and they report
that trial crude oil-processing operations began in May 2022.
In addition, PetroChina’s 400,000 b/d Jieyang refinery is expected to come online in the third quarter
of 2022. A planned 400,000 b/d Phase II capacity expansion also began operations earlier this year
at Zhejiang Petrochemical Corporation’s (ZPC) Rongsheng facility.

18.
Copyright © 2022 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 endeavors 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 18
Outside of China, the 300,000 b/d Malaysian Pengerang refinery (also known as the RAPID refinery)
restarted in May 2022 after a fire forced the refinery to shut down in March 2020. In India, the
Visakha Refinery is undergoing a major expansion, scheduled to add 135,000 b/d by 2023.
New projects in the Middle East are also likely to be an important source of new refining capacity.
The 400,000 b/d Jizan refinery in Saudi Arabia reportedly came online in late 2021 and began
exporting petroleum products earlier this year. More recently, the 615,000 b/d Al Zour refinery in
Kuwait—the largest in the country when it becomes fully operational—began initial operations
earlier this year.
A new 140,000 b/d refinery is scheduled to come online in Karbala, Iraq, this September, targeting
fully operational status by 2023. A new 230,000 b/d refinery is set to come online in Duqm, Oman,
likely in early 2023.
U

19.
Copyright © 2022 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 endeavors 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 19
NewBase Energy News 04 February 2023 - Issue No. 1590 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

20.
Copyright © 2022 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 endeavors 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 20

21.
Copyright © 2022 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 endeavors 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 21

22.
Copyright © 2022 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 endeavors 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 22