New base 495 special 11 december 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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NewBase 11 December 2014 - Issue No. 495 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
UAE: Access to develop Uganda's first solar power plant
Press Release + NewBase
Access Power MEA ('Access'), a power project developer focused on the Middle East and Africa,
has been awarded the contract to develop Uganda's first solar power plant. Through its subsidiary
Access Uganda Solar Limited the company will build, own and operate the 10 MWp solar
photovoltaic ("PV") facility in Soroti, Northeastern Uganda.
Once complete, the plant will generate over 18 million KWh per year, providing sustainable
energy for more than 40,000 Ugandan households. Following a competitive bidding process
during which 7 offers were received, the project proposed by Access has been selected to benefit
from the GET FiT Solar Facility, a dedicated support scheme for solar PV developments managed
by KfW the German Development Bank on behalf of the Ugandan Government and funded by the
European Union Infrastructure Trust Fund.
Commenting on the project, Reda El Chaar, Chairman of Access Power MEA, said: "We are
delighted to have the opportunity to make a significant contribution to thousands of households in
Uganda. The GET FiT program is a fine practical example of additionality that accelerates private
investment into a sector with high developmental impact."
Stephane Bontemps, Managing Director of Access Power MEA said: "The US$17 million project
will be the largest solar Independent Power Project in Sub-Saharan Africa excluding South Africa.
The project is expected to reach financial close in June 2015 and commence commercial
operations by December 2015.

The tariff for the project over the period of 20 years will be US Cent16.38 per kWh. However, the
end users in Uganda will only pay US Cent 11 per kWh through the electricity tariff while the
remaining cost will be paid by the GET FiT Solar Facility."
About Access
Access Power MEA ('Access') was founded in 2012 with the aim of becoming a leading developer
of power assets in the Middle East and Africa. Access has assembled a development team with a
track record of financially closing
~30 GW of power projects across
the globe with a specific focus on
the MEA region.
Access is
developing a
portfolio of power
assets in Africa
through its
subsidiary Access
Infra Africa (AIA).
Today, AIA is
actively seeking
the development
of a portfolio of
renewable energy
projects in 15
Africa countries.
AIA is technology
agnostic and focuses on developing affordable and sustainable power assets.
For more information visit www.access-advisory.com
About ERA
The Electricity Regulatory Authority (ERA) is mandated by the Electricity Act,
1999 to regulate the generation, transmission, distribution, sale, export and
import of electrical energy in Uganda. ERA recognizes that the future of
Uganda's electricity sector lies in the integration of least-cost renewable energy
sources into the generation mix. The organisation is therefore committed to
continued collaboration with Development Partners and key Government institutions to promote
the development and uptake of renewable energy in Uganda.
About Get FiT Program Uganda
The main purpose of GET FiT Program Uganda (GET FiT) is to fast-track a
portfolio of up to 20 small-scale renewable energy generation projects (1 MW - 20
MW) promoted by private developers with a total installed capacity of roughly 170 -
180 MW/ 800 GWh per annum. So far, GET FiT has approved 14 projects (hydro,
biomass, bagasse, solar) with an accumulated 103 MW. With five projects
expecting financial close and ground-breaking in the first half of 2015 and another
15 projects in the pipeline, GET FiT has become a front-runner in Sub-Saharan
Africa for financial support of small-scale renewable energy projects and for
attraction of private finance into the domestic energy sector.

GCC to stress on diversification as oil revenues reduce
Gulf News + NewBase
A top government official spoke on Wednesday of the importance of diversifying the economy into
non-oil sectors to effectively balance public finances as oil revenues dwindle in the wake of fall in
prices.
Addressing a key meeting of the Organisation for Economic Cooperation and Development
(OECD) in Abu Dhabi on Wednesday, Hamad Al Hurr Suwaidi, Chairman of Department of
Finance, Abu Dhabi said diversification into non-oil sectors to reduce reliance on hydrocarbon
related revenues is a key priority of governments.
“Investments in infrastructure
projects are critical to fuel
expansions in vital sectors of
non-oil economy like
tourism, transport,
manufacturing, finance,
services and trade,” he said.
From $115 per barrel in June
oil prices have come down to
$66.05 on Wednesday.
Analysts have said the trend
will continue even next year
as global economies slow
down and oil production
increases
Al Suwaidi said addressing
social challenges of all forms
like the need to generate
employment, meet rising housing demand and dealing with food inflation is a key priority.
“Governments have to strike a fine balance between spending for economic growth, social
considerations and environmental concerns,” Al Suwaidi said.
“We need to have the best processes, methodologies, systems and models in place to achieve
this. I don’t think a ‘one size fits all’ model for the transformation of budgetary policy is available.
The specific measures depend on the political, social, economic and administrative complexities
of each country.”
A Moody’s report determined that most Gcc countries will be able to maintain spending despite
lower revenues. The report stated that, excluding Bahrain and Oman, other sovereign wealth
funds can cover government expenditures for multiple years.
Al Suwaidi added that good public financial management system helps to underpin sound
economic growth, sustainable social progress, good governance and higher living standards for
people. “The development of a good public financial system is one of the key imperatives for any
government. Abu Dhabi has been implementing the best technological solutions for the
management of public finances at the lowest possible cost.”
Sultan Bin Saeed Al Mansouri, the UAE Minister of Economy recently said non-oil
sectors now account for 69 per cent of the UAE’s GDP with oil accounting for the
remaining third as the government continues its efforts to diversify away from oil and
rely more on non-oil income.

BP to invest $12bn in Egypt over five years
Reuters + NewBase
British oil major BP plans to invest more than $12bn in Egypt over the next five years, and to
double its gas supplies to the local market in the next decade, the country manager of BP Egypt
said yesterday.
“BP is committed to
unlock Egypt’s oil
and gas potential
and gradually
double its gas
supply during this
decade. This will
be achieved by
injecting more than
$12bn in the next
five years, Hesham
Mekawi told an
energy conference
in Alexandria,
referring to a
project to develop
the West Nile
Delta.
BP is one of the largest foreign investors in Egypt, which wants foreign companies to help ease
one of its worst energy crises in decades. Most international energy firms entered Egypt to
develop energy for export, but as consumption has increased and production decreased, the
government has diverted energy supplies to the domestic market, hurting companies’ profits.
Egypt plans to repay all its $4.9bn debt to foreign oil and gas companies within six months, the oil
ministry said last month, a move it hopes will prompt them to boost exploration and ease the worst
energy crunch in decades.
The country has delayed payments to oil and gas firms as its economy has been hammered by
almost three years of instability since a popular uprising ousted Hosni Mubarak in 2011.
Arrears began to accumulate before the revolt, but worsening state finances saw the debts mount
to billions of dollars while the government diverted gas earmarked for export to meet domestic
demand.
Egypt to tender for LNG import terminal
CAIRO: Egypt will launch a tender for a second LNG import terminal in the coming weeks, which
could help address the country’s ongoing energy crisis, a source at the state gas board said.
High consumption, along with foreign firms’ reluctance to invest in the sector until the government
pays billions of dollars it owes, have turned the country from a net energy exporter into a net
importer over the last few years.

Kuwaiti KUFPEC signs three Production Sharing Contracts
(WAM)+ NewBase
Kuwait Foreign Petroleum Exploration Company, KUFPEC, announced Wednesday that its
subsidiary, KUFPEC China, has signed three Production Sharing Contracts (PSCs) covering three
new exploration blocks located in the South China Sea adjacent to the Yacheng pipeline.
In an exclusive statement to Kuwait News
Agency, KUNA, KUFPEC pointed out that in
the event of a commercial discovery in any
of the new exploration blocks, KUFPEC
China will have a 30 percent working
interest in the development of such a
discovery.
The remaining working interest will be held
by the operator, a subsidiary of China
National Offshore Oil Corporation, CNOOC.
The statement noted that these new
exploration activities in the People's
Republic of China are further steps taken by
KUFPEC as part of its strategy to expand its
oil and gas exploration and production
operations worldwide.
"Our new exploration licenses allow us continue to work with CNOOC to take full advantage of our
excellent working relationship in the Yacheng Field in the South China Sea, where KUFPEC
China holds a 30 percent working interest," KUFPEC Chief Executive Officer, Sheikh Nawaf S. Al-
Sabah, said in the statement.
Production from the Yacheng offshore gas field has been supplying natural gas for power
generation to Hong Kong via a 780 km pipeline since 1996. Additional natural gas, condensate
and LPG are sold to customers on Hainan Island.

Denmark: Maersk spuds Xana exploration well offshore
Source: Noreco
JV partner Noreco has reported that drilling of the Maersk-operated Xana exploration well in
licence 9/95 on the Danish continental shelf has started. Norwegian Energy Company (Noreco)
is partner in the licence with an ownership of 20.1 per cent. The licence is located close to the
gas discovery Svane.
The well is being drilled by the
jackup drilling unit Noble Sam
Turner. The main target is upper
Jurassic sandstones, ca 4 600
metres below the seabed. Drilling
time to target depth is estimated to
approx. 140 days.
'While some have had their attention on the company’s financial challenges recently, our
exploration and operations experts have focused on ongoing business and concentrated on
preparations for this exploration well. They have done a good job,' says Tommy Sundt, CEO of
Noreco.
Noreco estimates that chance of success of the Xana well is 27 per cent and that the prospect
contains between 130 and 235 million barrels of oil
equivalents gross, most of it gas. This would
correspond to approx. 35 million barrels of oil
equivalents net P50 to Noreco.
Maersk Oil is the operator for the licence with an
ownership of 42.6 per cent. Noreco owns 20.1 per
cent through the Danish subsidiary Noreco Oil
Denmark, DONG E&P owns 27.3 per cent
while Danoil Exploration owns the remaining 10.0
per cent.
DK 09/95 – Xana: Upper Jurassic target in close
vicinity (up-dip) to the Svane gas discovery and south
of Gita discovery. CoS: 27% – Primary risk element:
Trap. 131– 235 mmboe gross (gas), 35 mmboe net
P50 (Source: Noreco)

Romania: Serinus Energy's Moftinu-1001 encounters multiple gas zones
Source: Serinus Energy
Serinus Energyhas reported preliminary log results from the Moftinu-1001 exploration well in
Romania. Serinus Energy operates in Romania through its wholly owned subsidiary Winstar
Satu Mare.
The Moftinu 1001 well, has been drilled within the 765,000 acre exploration block known as
theSatu Mare Concession, in north-western Romania. The Satu Mare Concession is 60% owned
and operated by Winstar Satu Mare and 40% owned by a subsidiary of KMG International, a
company with a wide
variety of interests in
the Romanian energy
sector.
Moftinu-1001 reached
a total depth of
1,463 metres on
November 28, 2014,
after penetrating the
entire Miocene and
Pliocene sandstone
section. These are the
equivalents of the
zones encountered in
the Moftinu-1000 well drilled by Winstar Resources in 2012, which tested in aggregate 1.6 million
cubic feet per day from two sands. The original planned total depth for Moftinu-1001 was
1,900 metres, intended to test the possibility of gas in pre Miocene (Eocene & Basement)
structures, but mechanical difficulties encountered at 1,463 meters made drilling deeper not a
viable option.
Logs indicate three Pliocene/Miocene aged zones with aggregate potential net pay of 17 metres
at depths ranging from approx. 730 to 900 metres. These sands show excellent porosity, ranging
between 24% and 36%. The well also encountered three additional zones at depths between 500
and 600 metres with aggregate sand thickness of 23 metres. These zones exhibit good reservoir
properties, although the preliminary data is not conclusive as to the existence of hydrocarbons
therein, and further evaluation will be required to confirm their commerciality.
Moftinu-1001 has been cased, and completion and testing will commence in early February.
Serinus will file a completion and testing program with the Romanian regulators, and that
approval is expected to be granted in January.
The drilling rig is now moving to the Moftinu-1002bis location, which is anticipated to be drilled
and cased by the end of this month. Pending success, Moftinu-1002bis will be completed and
tested immediately after Moftinu-1001.
These two wells, along with the recently acquired 180 sq km 3D seismic program in the Santau
area (including associated filings to the Government), will fulfil both the Government and partner
( Phase 2) minimum work commitment for Satu Mare Concession.

Cameroon oil output up 15 percent this year - may double
Source: Reuters + NewBase
Oil production in Cameroon rose 15 percent year-on-year to 22.69 million barrels by the end of
October, according to the state oil firm, but output may double within the next two years as new
fields come on line.
Cameroon became a modest oil producer in 1977, with output hitting a record of 185,000 barrels
per day (bpd) in 1986 before dropping steadily to 63,000 bpd in 2011 due to maturing fields.
However, new finds and new techniques to tap more oil from matured wells have seen volumes
rising again. 'This increase results particularly from the Dissoni field production, as well as the
commissioning of three new fields:Padouk, Inter Inoua-Barombi and Barombi," Cameroon's
National Hydrocarbons Corporation (SNH) said in a statement on the output for the year to
October.
The Dissoni oil field is operated by French oil firm Perenco in partnership with the state oil
company . Perenco is also the operator in theInter Inoua-Barombi and Barombi blocks. Addax
Petroleum, a subsidiary of Sinopec Group, operates Padouk.
Some at the state company are even more optimistic. 'Crude production could double within two
years thanks to the exploitation of new deposits. It could hit 57 million barrels in 2016,' the SNH
official said, requesting anonymity. The state oil firm said in the statement that gas production
jumped 123.9 percent to 9,160 million cubic feet compared with the same period last year.

ExxonMobil:Energy demand to increase on growing middle class
Source: ExxonMobil
Significant growth in the global middle class, expansion of emerging economies and an additional
2 billion people in the world will contribute to a 35 percent increase in
energy demand by 2040, according to a new report released yesterday by
ExxonMobil.
As demand increases, the world will continue to become more efficient in
its energy use, according to the 2015 Outlook for Energy: A View to 2040.
Without efficiency gains across economies worldwide, energy demand from
2010 to 2040 would be headed toward a 140 percent increase instead of the 35 percent forecast
in the report.
“Carbon-based fuels will continue to meet about three quarters of global energy needs through
2040″
ExxonMobil’s Outlook for Energy projects
that carbon-based fuels will continue to
meet about three quarters of global energy
needs through 2040, which is consistent
with all credible projections, including those
made by the International Energy Agency.
The outlook shows a shift toward lower-
carbon fuels in the coming decades that, in
combination with efficiency gains, will lead
to a gradual decline in energy-related
carbon dioxide emissions.
Wind, solar and biofuels are expected to be
the fastest-growing energy sources,
increasing about 6 percent a year on
average through 2040, when they will be
approaching 4 percent of global energy
demand. Renewables in total will account
for about 15 percent of energy demand in
2040. Nuclear energy, one of the fastest-
growing energy sources, is expected to
nearly double from 2010 to 2040, with growth in the Asia Pacific region, led by China, accounting
for about 75 percent of the increase.
“This research offers important perspective about the factors that will drive the world’s energy
needs in the coming decades,” said Rex W. Tillerson, chairman and chief executive officer of
Exxon Mobil Corporation. “Helping individuals, businesses and governments to better understand
the elements that shape future energy supply and demand around the world is essential to aid
investments and create effective energy policy.”
“Wind, solar and biofuels are expected to be the fastest-growing energy sources, increasing about
6 percent a year on average through 2040″
The Outlook for Energy provides ExxonMobil’s long-term view of global energy demand and
supply. Its findings, ExxonMobil says, help guide the company’s investments, which support its
business strategy. The outlook is developed by examining energy supply and demand trends in

100 countries, 15 demand sectors covering all manner of personal and business needs and 20
different energy types.
The global middle class is expected to climb from about 2 billion in 2010 to almost 5 billion people
by 2030, representing more than half of the world’s population, according to the Brookings
Institution. As projected, that middle class expansion – largely in India and China – will be the
largest in history and will have a profound impact on energy demand. Along with income gains,
on-going societal changes such as expanded infrastructure, electrification and urbanization will
contribute to greater energy use.
“The global middle class is expected to climb from about 2 billion in 2010 to almost 5 billion people
by 2030″
The Outlook for Energy identifies a significant
evolution in the trade of oil and other liquids. A
major shift is seen as North America will likely
become a net exporter of liquids by 2020 as
supplies of so-called tight oil, natural gas
liquids and bitumen from oil sands increase.
This is expected to open new trading
opportunities as Asia Pacific’s net imports are
projected to rise by nearly 80 percent by 2040.
Africa’s liquids exports are expected to decline
as local demand more than doubles. In Latin
America, growth in supplies is anticipated to
outpace demand as supplies of deepwater and
unconventional liquids expand.
“North America will likely become a net
exporter of liquids by 2020″
North America unconventional gas production
will nearly triple by 2040 and the region is

expected to surpass the combined output of Russia and the Caspian region as the largest gas-
producing area. In Asia Pacific, gas production is seen doubling by 2040, driven partly by
unconventional production technologies. Demand in the region is expected to climb by about 170
percent, according to the outlook, and as a result, Asia Pacific will likely overtake Europe as the
world’s largest gas importer.
“Natural gas is expected to be the fastest-growing major fuel source”
Natural gas is expected to be the fastest-growing major fuel source during the outlook period as
demand increases by about 65 percent. Half of that increase will come from the Asia Pacific
region, led by China. Utilities and industrial operations are expected to account for about 80
percent of the demand increase worldwide, as operators increasingly choose natural gas because
of its lower emissions and versatility as a fuel and feedstock. By 2040, natural gas is expected to
account for more than a quarter of global energy use, surpassing coal in the overall mix.
Demand for coal is expected to rise through 2025 and then decline as China’s economic growth
gradually slows and it follows the shift seen in Organisation for Economic Co-operation and
Development (OECD) countries toward cleaner fuels. Still, over time, global coal demand is
expected to remain most prominent in Asia Pacific, primarily to support growing power-generation
requirements.

Oil Price Drop Special Coverage
OPEC cuts 2015 demand for its oil
Reuters + NewBase
Global demand for OPEC crude in 2015 will be less than expected and far below its current output, the
group said on Wednesday, pointing to a hefty supply surplus without OPEC output cuts or a slowdown in
the US shale boom.
In a monthly report, the Organization of the Petroleum Exporting Countries (OPEC) forecast demand for
the group's oil will drop to 28.92 million barrels per day (bpd) in 2015, down 280,000 bpd from its previous
expectation and over 1 million bpd less than it is currently producing.
OPEC's Nov. 27 decision to retain its output target of 30 million bpd sent prices plunging. Brent crude on
Wednesday was trading below $66 a barrel, close to a five-year low and down more than 40 percent since
June.
The report cut its forecast for growth in global demand in 2015 due to a weaker outlook for Europe and
Asia, and predicted higher supply growth from shale and other non-OPEC sources, although it said this
may be slowed if prices stay weak.
"Should the current fall in crude prices continue over a longer period, it will impact the non-OPEC supply
forecast for 2015, especially anticipated growth in tight crude," OPEC's report said, using another term for
shale oil.
For now though, OPEC's report indicates that, with OPEC pumping 30.05 million bpd in November
according to secondary sources cited by the report, there will be a surplus of 1.13 million bpd in 2015, and
1.83 million bpd in the first half.

According to the secondary-source figures, OPEC output fell by 390,000 bpd from October, largely
because of unrest in Libya and smaller reductions in Saudi Arabia and Kuwait.
BP to spend $1bn on thousands of job cuts
AFP + NewBase
BP will cut thousands of jobs cut across its global oil and gas business by the end of next year in a
$1bn restructuring programme announced yesterday following steep falls in oil prices. The British
oil major said it was also considering deeper cuts to its 2015 budget beyond the $1-$2bn
reduction already announced in October, as a result of the oil slump.
“Given the recent position taken by Opec and with oil prices where they are today, we will
continue to review this further,” BP head of upstream Lamar McKay said in a presentation during
an investor day in London.
The bulk of the restructuring costs will go towards staff redundancies in all segments, including oil
exploration and production, refining and trading and administration, a company spokesman said.
BP said a first charge will be taken in the fourth quarter of 2014 as it implements a plan drawn up
over the past 18 months to increase efficiency. “We expect the group to incur about $1bn of non-
operating restructuring charges over the next five quarters, including the current quarter,” the
company said.

Thousands of BP’s global work force of around 84,000 are expected to lose their jobs, sources
said. BP is in the midst of a cost cutting drive that saw it sell over $43bn worth of assets to cover
the expense of the 2010 Gulf of Mexico oil spill and the oil sector’s rising costs.
The sharp drop in oil prices, which fell from around $115 a barrel to around $65 a barrel since
June, has piled further pressure on BP and its peers as revenues tumble. By 1306 GMT, BP
shares were down 0.32% at 404.65 pence per share, compared to a 0.06% decline in the Stoxx
600 oil & gas index.
McKay did not give any details on possible project delays or cancellations, saying new oil projects
were sanctioned at $80 a barrel, but were also tested at $60 a barrel. Global oil and gas
exploration projects worth more than $150bn are likely to be put on hold next year as plunging oil
prices render them uneconomic, data shows.
Deutsche Bank yesterday upgraded BP shares to buy, quoting “positive change in perception”
over the impact of Russian sanctions and the Gulf of Mexico spill. “The simplification work we
have already done is serving us well as we face the tougher external environment,” chief
executive Officer Bob Dudley said in a statement before briefing analysts on exploration and
production plans, adds Bloomberg.
“We continue to seek opportunities to eliminate duplication and stop unnecessary activity that is
not fully aligned with the group’s strategy.” BP has completed about $43bn of asset sales since
the 2010 oil spill in the Gulf of Mexico that was the largest in US history.
The offshore disaster has cost London-based BP more than $28bn in clean-up costs and
damages, and the company is still fighting battles on multiple fronts. BP expects to add 900,000
barrels of oil equivalent a day by 2020 through major new projects and raise gas production and
resources from about half of the total now, it said.

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Khaled Malallah Al Awadi,
Energy Consultant
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
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 11 December 2014 K. Al Awadi

New base 495 special 11 december 2014

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