NewBase 592 special 28 April 2015

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NewBase 28 April 2015 - Issue No. 592 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Inpex in 5% stake in ADCO concession
Reuters + NewBase
Japanese oil and gas developer Inpex Corp has completed the final adjustments to obtain a 5 per
cent stake in a new concession to help operate the United Arab Emirates' biggest oilfields for $1.1
billion, public broadcaster NHK said on Monday.
Inpex was one of 11 firms that bid for stakes in the concession covering Abu Dhabi's 15 principal
onshore fields that produce about 1.6 million barrels per day, NHK reported without citing sources.
An Inpex spokesman declined to comment on the report.
After its previous deal with oil majors expired last year, state-run Abu Dhabi National Oil Company
(Adnoc) took 100 per cent of the concession as political leaders in Abu Dhabi weighed up whether
to bring in Asian firms or stick with old partners, industry and diplomatic sources said.
In January, Total became the first company to renew its concession, with a 10 per cent stake,
putting peers like BP and Royal Dutch Shell under pressure to improve terms after the French oil
major submitted the best bid offer, according to industry sources.
Inpex did not have a previous stake in this concession, where production is expected to reach 1.8
million bpd from 2017. Senior Japanese government officials have been working to strengthen the
country's relationship with the United Arab Emirates in energy and other areas.
85%
10%
5%

Trade Minister Yoichi Miyazawa urged Adnoc's director general Abdullah Nasser al-Suwaidi to
renew oil concessions held by all Japanese companies during his January visit.
Inpex Corp of Japan joined Total in developing the main onshore oil deposits in the UAE as Abu
Dhabi calls on new partners for its $22bn effort to pump crude from its largest fields. Japan’s
state-backed energy explorer will take a 5% stake in the fields, Yoichi Miyazawa, the trade
minister, said at a press conference in Tokyo yesterday.
The concession will give Japan access to crude from the Abu Dhabi deposits for 40 years starting
January 1, 2015, Inpex and the emirate’s government-owned oil producer said in an e-mailed
statement.
“It makes sense for Abu Dhabi to name an Asian partner since more of their demand is coming
from there,” said Robin Mills, a Dubai-based analyst at Manaar Energy Consulting. “Inpex brings
quite a lot technically and they operate major projects.”
A Chinese company could be one of the next bidders awarded a stake, he said.
Abu Dhabi National Oil Co known as Adnoc picked Inpex from at least 10 bidders to join it and
Total in the venture. Inpex agreed to pay Adnoc a signing bonus of about $1.1bn, Japan’s public
broadcaster NHK reported yesterday, without saying where it got the information.
The project “is highly significant in terms of the company’s growth strategies, and also largely
contributes to the long-term, stable supply of energy to Japan,” Toshiaki Kitamura, Inpex chief
executive officer, said in the statement.
Abu Dhabi, the UAE’s largest emirate, holds about 6% of global oil reserves. The UAE capital
plans to boost crude production capacity to 3.5mn bpd in 2017, from about 3mn barrels a day
now. Output capacity from the onshore bloc in which Total and Inpex are partners will rise to
1.8mn bpd by then, from about 1.6mn barrels now, Adnoc and Inpex said.
Adnoc is spending about $22bn on projects to increase onshore oil and gas production and export
capacity, Omar Suwaina al-Suwaidi, the company’s deputy director for strategy, said at a
conference in Abu Dhabi on November 11. The concession encompasses the fields of Bab, Bu
Hasa, Sahil, Asab, Qusahwira, Mender, Al Dabb’iya, Rumaitha and Shanayel, Adnoc said
yesterday.
Total, along with BP, Exxon Mobil Corp, Royal Dutch Shell and Partex Oil & Gas, was a
shareholder in the Abu Dhabi onshore fields, under a 75-year concession agreement that expired
in January 2014. Total became the first company awarded a stake in January, getting 10% of the
holding. Inpex wasn’t involved in the onshore projects until now.
Adnoc, which plans to retain 60% of the partnership, asked the remaining bidders to match the
$2.2bn signing bonus Total agreed to pay for its 10% share in the fields, two people with
knowledge of the situation said February 12.

Adnoc was last week in advanced talks with two Asian bidders, while proposals “by international
oil companies failed to fulfil Adnoc’s requirements and conditions,” director general Abdullah
Nasser al-Suwaidi said, according to an April 20 statement from the company. China National
Petroleum Corp was among companies to bid for the concession, according to Energy Intelligence
Group. Three calls to CNPC’s Beijing-based spokesman Qu Guangxue weren’t returned.
“China’s where the action is in terms of demand growth,” Mills said. China could win a stake in the
concession if Adnoc wants a partner from the country with the prospect for the greatest future
demand and if Adnoc deems the technical aspects of CNPC’s bid strong enough, Mills said.
Adnoc is seeking to boost the amount of oil it can extract from its fields to 75% of reserves, double
the 35% of crude countries have historically been able to recover, Michael Townshend, regional
president of BP Middle East, said last week. That requires “near perfection” in reservoir
management, he said.
Murban grade crude pumped from Adnoc’s onshore fields can be exported from the Jebel Dhanna
port in the Gulf and from Fujairah, the UAE oil trading hub that sits beyond the shipping
chokepoint at the Strait of Hormuz. The Strait, separating the Gulf from the Indian Ocean, is the
world’s most important transit bottleneck for oil shipments, according to the Energy Information
Administration.
“This deal will contribute to Japan’s stable supply as exports from the block will bypass the Strait
of Hormuz,” Miyazawa said at the trade ministry press conference. The agreement will provide
Inpex about 90,000 barrels of oil a day, which is equal to the company’s equity stake in production
from the concession, Ryo Minami, head of the ministry’s oil and gas department, said at the press
conference.

Oman: Commissioning of Musandam Gas Plant in July
Oman Obvervor + NewBase
A major oil and gas processing plant under development at Tibat in Oman’s Musandam
Governorate is due to enter the commissioning phase in July ahead of commercial launch planned
later in the year.
The strategically important scheme is being implemented with an investment in excess of $600
million by Oman Oil Company Exploration and Production (OOCEP), the upstream energy
subsidiary of the wholly government owned investment vehicle Oman Oil Company. When fully
operational, the plant will provide natural gas as fuel for the governorate’s first ever gas-fired
Independent Power Project (IPP), ending an era of diesel-based electricity generation in this
northern enclave of the Sultanate.
According to OOCEP’s chief executive officer, Salim al Sibani, the plant will process well fluids
from the existing Bukha field offshore platforms in Block 8, as well as future flows from Blocks 17
and 40 operated by PetroTel offshore Musandam.
“The plant will cater to multiple scenarios coming out from the offshore blocks,” Al Sibani said.
“Currently, the fields are producing through RAK Petroleum, and with the completion of the project
by the middle of this year, we hope to see the plant commencing commercial production before
the end of the year,” he added in a recent presentation of OOCEP’s upstream operations.
Part of the project’s output of natural gas will be used as fuel for the proposed Musandam
Independent Power Project. Another offshore export pipeline will transport sales gas from
Musandam to Saqr Port in Ras Al Khaimah.
The launch of the gas plant, initially slated for Q4 2014, was delayed because of the challenges of

constructing the facility in a green-field and rugged part of Tibat. Additionally, the logistics and
formalities of hauling construction machinery and plant equipment across international borders
posed difficulties as well.
The scope of the processing
plant had to be revamped as
well to suit the nature of the
well fluids as well as to
support sustainable
operations. “We knew from
the outset that we had to deal
with massive quantities of
H2S, for example. Later, we
had to add an LPG extraction
(component), which wasn’t
there in the original scope.
Captive power had to be
added as well.”
Given the green-field and
mountainous nature of the
construction site, levelling
works took around 18
months. “Thus, from May
2011 when site activities
started, through to December
2014 when virtually 99 per
cent of the project had been
completed, the project had
gone through a massive
transformation to enhance its multiple processing capacities and capabilities in order to harness
the offshore resources of that area,” the CEO said. Also in place are the pipelines linking the
producing platforms to the gas plant, and the export pipeline from the plant to the UAE gas export
network. Commissioning activities are slated to commence by the end of July this year with the
start of commercial production planned around October-November, Al Sibani added.
Masandam
Gas Plant
Oman Oil Company Exploration and Production LLC (OOCEP), an upstream oil and gas
subsidiary of Oman Oil Co, has awarded a US$40mn engineering, procurement and
construction (EPC) contract to Abu Dhabi-based National Petroleum Construction Co
(NPCC) for installation of two offshore pipelines in the Musandam area, Emirates News
Agency (WAM) reported last week.
A new multiphase offshore pipeline will import well fluids from the Bukha field to the
Musandam Gas Plant for processing. An offshore export pipeline will also be installed to
transport gas from Musandam to Saqr Port in Ras al Khaimah, according to a press
release from NPCC. The two pipelines have a total length exceeding 30km and will be
laid underwater at a depth of up to 90m. The nearly US$40mn contract provides NPCC
an entry into the lucrative Omani market and is in line with its expansion strategy.

Algeria:Petroceltic International awards rig contract for
the Ain Tsila project Source: Petroceltic International
AIM-listed Petroceltic International has announced the award of a contract for
the provision of a drilling rig between Groupement Isarene and SINOPEC for the
Ain Tsila gas and
condensate field.
Groupement Isarene, the
joint operating
organisation responsible
for executing the Ain Tsila
field development plan
established by Sonatrach,
Petroceltic and
Enel, successfully
completed the tendering
process resulting in the
award and signature of
the contract to SINOPEC.
The 1500 horse power rig,
which is now built and
ready to ship, will drill up
to 24 new development
wells. The first 12 drilling
locations, all in the
northern region of the
field, have already been
selected and approved.
The award of the rig
contract represents the
achievement of a further
milestone for the Ain Tsila
project and will enable
drilling to commence on
schedule in 2015.
The Front End Engineering and Design of the project which was awarded in
September 2014 to Chicago Bridge and Iron is also progressing well. The
Groupement has launched the process to identify suitable companies to perform the
Engineering, Procurement and Construction ('EPC') contract via publication of an
invitation to pre-qualify in the Algerian Bulletin of Public Tenders in the Energy and
Mine Sector.
The Groupement is in receipt of a number of submissions, and it is anticipated that a
shortlist of potential bidders who will be formally invited to tender for the EPC
contract will be established shortly.

Oman’s biggest Pilot Solar Project by Renaissance
commissioned in Fahud
Times of Oman
Pilot Solar Project at the Renaissance Permanent Accommodation for Contractors (PAC) in
Fahud was inaugurated on Monday by Salim bin Nasser Al Aufi, Undersecretary of Ministry of Oil
& Gas, accompanied by His Highness Sayyid Tarik bin Shabib bin Taimur Al Said.
The solar project will be largely considered to become the Sultanate's primary source of power
generation and will be add to the current power generation in Oman as it is a cheaper alternative
to gas, Al Aufi said. "I think these projects are more strategic than commercial. At some point in
time gas and fuel prices will rise while solar panel prices will fall. It won't take time to actually
have renewable energy as a primary source of power and hydrocarbon as a backup system in
case something does not go well," said Al Aufi.
"It (solar power) is definitely not going to phase out the oil and gas industry but will be an addition
to them. I don't personally see it as a threat; I think it is complimenting what we do and we need
to embrace it constantly," he added.
We definitely give top priority to develop alternative energy. Presently, Oman is using quite a lot
of gas to generate power and our consumption is going up by 10 per cent on an annual basis. So
we need to concentrate on renewable energy, not necessarily as a cost effective way of
generating power but as a strategic way to develop the technical know-how and further develop it
to make it more cost effective in the future, Al Aufi said.
The Renaissance Pilot Solar Project at Fahud is by far the biggest solar power project in Oman. I
hope Renaissance will continue to develop the project for everyone else to follow, he added.

The innovative project consists of 4,000 polycrystalline solar panels designed as 10,000 square
metres of shaded car parking. The novel concept saves additional design and structural costs,
while generating up to 2.2 million kWh ( 6.0 MWH )of renewable energy annually, meeting almost
all of the facility's daytime electricity needs. In addition to providing energy, it also saves about 25
barrels of oil a day.
The project's environmental benefit includes reduction
of 1,500MT carbon emissions annually, which is
equivalent to planting 580 acres of trees or not driving
4.5 million kilometres. The panels are not limited to
PACs but small and medium enterprises (SMEs) can
also pursue a sustainable source of power if they
wanted to, a Renaissance official said.
"We do a lot of research to find the panels that are
good for this climate and systems that are good for
maximising the potential of solar energy. We will be
able to implement such similar project for others if they are interested," he added. This is
Renaissance's first project in Oman to provide renewable and sustainable energy.
"At Renaissance we ensure we carry out our business in a responsible and sustainable manner
and this solar project is the latest and most important statement of our stewardship of the
environment. How we conduct our business is important to all of us. It matters to our customers,
our investors, the communities in which we serve, and it matters to all of us who work in the
company," said Ananda Fernando, MD, Renaissance Services.
"This initiative meets our long-term strategy to enhance energy efficiency at our PAC and reduce
our overall carbon footprint," he added. The potential for solar power is high in the Sultanate, with
its high ratio of 'sky clearness' and one of the highest solar energy densities in the world.
Moreover, His Majesty's Vision 2020 strategy envisions up to 10 per cent of Oman's total
electricity requirement to be met by renewable energy sources.

Mauritania: Kosmos Energy makes significant gas
discovery offshore
Source: Kosmos Energy
Kosmos Energy announced Monday that the Tortue-1 exploration well, drilled to test
the Tortue West Prospect, which forms part of the Greater Tortue Complex, in Block C-
8 offshore Mauritania has made a significant, play-opening gas discovery.
Based on the preliminary analysis of drilling results and intermediate logging to a depth of 4,630
meters, Tortue-1 has intersected 107 meters (351 feet) of net hydrocarbon pay. A single gas pool
was encountered in the primary Lower Cenomanian objective.
The Lower Cenomanian is comprised of three excellent quality multi-Darcy reservoirs totaling 88
meters (288 feet) in thickness over a gross hydrocarbon bearing interval of 160 meters (528
feet). A fourth zone 19 meters (62 feet) thick was penetrated within the secondary Upper
Cenomanian target over a gross hydrocarbon bearing interval of 150 meters (492 feet).

Andrew G. Inglis, chairman and chief executive officer, said:
'Volumetrically, the Tortue-1 well has far exceeded our pre-drill expectations and has discovered
a large scale gas resource. Our seismic imaging indicates the areal extent of Tortue West could
cover approx. 90 sq kms that will be better defined with appraisal drilling.
Importantly, given the results and excellent well-to-seismic calibration, the Tortue-1 well has
significantly de-risked our large and under-explored 27,000 sq km deepwater position in
Mauritania. Our acreage offers substantial follow-on prospectivity including a diverse range of
Cenomanian as well as deeper Cretaceous plays and fairways with strong dependency.'
An appraisal program is being planned to delineate the Tortue West discovery. In addition,
the Marsouin-1 exploration well, located in the central part of Block C-8, is expected to spud
in the third quarter of 2015.
An exploration program is also being formulated to test the other prospects in the Greater
Tortue Complex, which extends into the St. Louis Offshore Profond Block in Senegal,
including the Tortue East andTortue North prospects. In support of this program, a 3D seismic
survey acquired over our Senegal blocks in 2014 is currently being processed and interpreted.
Brian F. Maxted, chief exploration officer, said:
'This significant play-opening discovery validates our frontier exploration strategy where we are
now one in three in our ‘Second Inning’ campaign. Our results demonstrate that our organic
deepwater exploration business model, which targets early access to build large acreage
positions with significant follow-on dependent prospectivity, can deliver significant value for our
shareholders.'
Located approx. 285 kms southwest of Nouakchott in 2,700 meters of water, and drilled with the
Atwood Achiever drillship, the Tortue-1 well is now drilling to the planned total depth of approx.
5,250 meters.
Kosmos currently owns a 90 percent interest in the Tortue Prospect, along with Société
Mauritanienne Des Hydrocarbures et de Patrimoine Minier (SMHPM) at 10 percent. Since
2012, Kosmos has held rights to conduct exploration in the C-8, C-12 and C-13 contract
areas under production sharing contracts with the Government of Mauritania.
In March 2015, Chevron Mauritania
Exploration, a wholly owned subsidiary
of Chevron Corp, acquired a 30% non-
operated interest in the C-8, C-12 and
C-13 contract areas under production
sharing contracts. Chevron has an
option to elect to participate at a 30%
interest in theTortue Prospect,
subject to Chevron paying a
disproportionate share of their costs
related to the Tortue-1 exploration well.
The blocks are contiguous, range in
water depth between 1,000 and 3,000
meters, and have combined acreage of
approx. 27,000 sq kms.

Indonesia:Cooper Energy's Bunian-3 development well flows oil
Source: Cooper Energy
Cooper Energy reports that the testing of the Bunian-3ST2 development well foreshadowed in
the Update dated 21 April has begun successfully with oil flows from the primary targetTRM3
sand.
Following an initial
cleanup period, the
TRM3 sand flowed
for 2 hours at a
stabilised flow rate
equivalent to 1,742
barrels per day of oil
through a ¼ inch
choke, with a flowing
tubing head pressure
of 500 psi. The flow
consisted of oil and
gas with no water.
Measurements to
quantify the gas rate
are ongoing. The
flow rate achieved
was limited by the
capacity of available
surface facilities. Oil
flows are being
directed to a
temporary production
facility and produced
oil is being trucked directly to market. Further flow testing of the TRM3 sand is being conducted
to gather additional data. On completion of the initial evaluation of the TRM3 sand, flow testing
of the K1 sand will be conducted. Analysis of the increase in reserves will be completed after the
completion of the production tests.
Cooper Energy Managing Director David Maxwell said 'these encouraging initial results are
consistent with post drill expectations and will assist with the identification of additional reserves
in this reservoir'.
The drilling rig was released on 23 April and has been moved off site while maintenance work is
carried out prior to commencing the drilling of Tangai-5. Joint Venture participants in the KSO
Tangai-Sukananti Block are Cooper Energy Ltd (Operator 55%) and Mega Adhyaksa Pratama
Sukananti Ltd (45%).
Background
Bunian-3 ST2 is an onshore well in the Sukananti KSO, South Sumatra, Indonesia. The Bunian
structure is a four-way, fault bounded anticline defined by the 2011 Sukananti 3D seismic
survey. Bunian-3 is located 730 metres southwest of Bunian-1 and the primary target is the
Talang Akar Formation TRM3 Sand. Bunian-1 was drilled in 1998 and initially tested at 1,585
barrels of oil per day. Bunian-1 has produced 993,000 barrels of oil from the TRM3 sand and is
currently producing at approx. 200 barrels of oil per day.

Kazakhstan: Condor Petroleum receives Zharkamys
contract extension Source: Condor Petroleum
Condor Petroleum has announced that the Government of Kazakhstan has approved an
extension to theZharkamys West 1 exploration contract for ten months until December 14,
2016. The Zharkamys exploration contract will be amended in due course.
Drilling Update: A drilling contractor has been selected to drill the KN-501 Primary Basin well.
The well location will be constructed in May and drilling is expected to commence in June. The
KN-501 well offsets the Company's play opening KN-E Primary Basin discovery by 8 kms and is
located under the same salt dome. The well is planned to reach 4,250 meters and is targeting 67
MMboe unrisked mean prospective resources (internal Company estimate).
Working Capital: The Company's current working capital is CA$55 million and the Company has
no debt. About Condor: Condor is a Canadian based oil and gas company with a 100% interest
in the exploration rights to the 3,777 sq km Zharkamys West 1 Territory located in Kazakhstan's
Pre-Caspian basin. The Company is listed on the TSX under the symbol 'CPI'.

Madagascar: Sterling Energy acquiring 3D seismic over the
Ambilobe Block. Source: Sterling Energy
AIM-listed Sterling Energy has provided an update on activities in the Ambilobe
Block, located offshore Madagascar.
Sterling has commenced its planned 3D seismic survey of 1,250 km² over a high-
graded portion of the Ambilobe Block. The acquisition is being undertaken by CGG
Services, on behalf of the Joint Venture Partners, and completion is expected within
45-50 days. A further announcement regarding this survey will be made once
acquisition is completed.
The Ambilobe PSC, awarded in 2004, is in Phase 2 of the Exploration Period
with all minimum work commitments for the current phase completed. In December
2013, Sterling completed a farm-out agreement with Pura Vida under which all
costs associated with the acquisition of the discretionary 3D seismic programme, up
to a maximum of US$15 million, are carried by Pura Vida. Sterling expects that the
carry will cover all the costs of the 3D seismic survey. Sterling and Pura Vida each
hold a 50% interest in the Ambilobe Block with Sterling as operator.
Details of the Ambilobe PSC can be found in Sterling's Investor Presentation which
can be viewed on the Company's website.
The Company's Chief Executive Officer, Eskil Jersing said:
'We are looking forward to safely and efficiently acquiring the first 3D seismic survey
on the Ambilobe Block; providing valuable new data which will be used to identify
potential drillable prospects.'

Oil Price Drop Special Coverage
Oil falls more than 1 percent as U.S. crude stockpiles expected to hit high
(Reuters + NewBase
Oil fell more than 1 percent today Tuesday , 28 April 2015 , ahead of weekly U.S. crude inventory
data that is expected to hit another high and as Saudi Arabia pledged to supply more oil to
China if needed.
U.S. commercial crude stockpiles were expected to have risen for a 16th straight week last week,
up from a record 489 million barrels even as drilling activity fell, a preliminary survey by Reuters
showed on Monday.
Comments made by top Saudi oil officials on Monday reiterated the country's position of keeping
production high to meet demand as it maintains its market share. Brent June crude futures had
dropped 83 cents to $64.00 a barrel by 0152 GMT. U.S. June crude had declined 85 cents to
$56.14 a barrel.
The fall in prices "reflects the major gains that have been made in the last few weeks and a little
bit of concern over what the inventory numbers in the U.S. might show," said Michael McCarthy,
chief strategist at CMC Markets in Sydney.
Brent crude hit 4-1/2 month high last week, while West Texas Intermediate (WTI) has risen for six
consecutive weeks, underpinned by net long positions on both contracts as speculators bet on a
decline in U.S. shale output.

The number of active U.S. rigs drilling for oil has fallen to the lowest since 2010 and the U.S.
Energy Information Administration expects to see a drop in oil output in May from April, the first
monthly decline in four years.
"It's pretty clear production is being pulled back and finally we're seeing the impact of lower rig
counts," McCarthy said.
"There is potential for a bounce back in inventories if that was only a temporary aberration, but, of
course, if the recent trend continues, we should see some support."
The two oil benchmarks are sitting above key technical levels, with Brent above $64-$64.50 and
WTI above $56, he said.

Traders Seen Mispricing Oil as Spending Slump Signals Crunch
by Bill Lehane
Oil traders are mispricing crude futures for later this decade because they’re underestimating how
a collapse in spending will affect supplies, according to consultants who advise energy producers
and analysts.
Prices could rise to about $100 a barrel by 2019, about 34 percent above where Brent crude oil
futures for that year are trading, says JBC Energy GmbH, a Vienna-based company that’s
followed oil markets for more than two decades. Energy suppliers cut about $126 billion of
expenditure following last year’s price drop of almost 50 percent, estimates Wood Mackenzie Ltd.,
an Edinburgh-based consultant.
Oil plunged as OPEC responded to a global glut by insisting that suppliers outside the 12-nation
group join in any effort to eliminate the surplus, keeping its own output unchanged at 30 million
barrels a day. The investment decline is at odds with how future oil prices traded this year:
immediate ones have started to recover from the crash, while those for the end of decade have
continued their slump, as this graphic shows.
“The longer and the lower the current oil price slump goes on, the faster and higher the
bounceback in the oil price will be further down the line,” Luke Parker, director of corporate
research at Wood Mackenzie, said by phone April 24. “There have been volumes taken out of
future production growth.”
While the most-traded front-month contract for Brent rallied 14 percent to about $65 a barrel this
year, it remains 43 percent below where it was in June. Later-year futures may have dropped as a
result of producers using the contracts to hedge future sales prices, says JBC Energy.
$90 a Barrel
Royal Dutch Shell Plc, Europe’s largest oil company, assumed oil prices will average $90 a barrel
from 2018 to 2020 when it said it intended to acquire BG Group.
Pipelines run toward oil storage tanks stand at the Enbridge Inc. Cushing
storage terminal in Cushing, Oklahoma. Energy suppliers cut about $126
billion of expenditure following last year’s price drop of almost 50
percent, estimates Wood Mackenzie Ltd.,

December 2020 Brent futures dropped about 5 percent this year to $75 a barrel and by 24 percent
since July. Prices will probably rise above that level by the end of the decade, according to Parker.
“Our view is that we will see another spike in oil prices in 2019 above $100 per barrel for Brent,”
said David Wech, managing director of JBC. “Globally, every year we have to replace about 3 to
3.5 million barrels per day of natural decline and that will be a challenge for the global upstream
industry and the U.S. shale industry alone cannot counter balance that.”
The industry has cut its per-barrel costs for extracting oil by about $18 to $72 a barrel for 50 of the
world’s biggest producers, Wood Mackenzie estimates. Still, reduced investment will have more
influence on long-term prices than any savings that can be made, said Paul Horsnell, a London-
based analyst at Standard Chartered Bank Plc.
“We find it inconsistent that prices could possibly stay low for an extended period given the degree
of supply-side damage that’s been done,” Horsnell said.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
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For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
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 28 April 2015 K. Al Awadi

NewBase 592 special 28 April 2015

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