New base 715 special 27 october 2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase 27 October 2015 - Issue No. 715 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
GCC to increase desalination capacity 40% by 2020: IWS
IWS + Saudi Gazette + NewBase
The GCC will increase its total seawater desalination capacity by nearly 40 percent by 2020 in an
effort to meet the rapidly increasing demand for potable water in the region, according to new
figures revealed by the International Water Summit in collaboration with MEED Projects.
Data produced by MEED Projects revealed that the GCC’s current seawater desalination capacity
of approximately 4,000 million imperial gallons a day (MIGD) is set to increase to more than
5,500MIGD – nearly 40 percent – over the next 5 years as the GCC states invest heavily in
increasing potable water supply.
Desalination is becoming an increasingly important matter for countries like the UAE and Qatar
which have experienced rapid rises in demand for water on the back of strong economic and
population growth, and Saudi Arabia where groundwater supplies are depleting. As a result, there
is a growing need for new water resources, said Ed James, Director of Content & Analysis at
MEED Projects, the region’s leading online projects tracking service.
Currently, demand for potable water in the region is about 3,300MIGD, and is expected to grow to
about 5,200MIGD by 2020. While current reserve margins between supply and demand appear to
be at comfortable levels, at country and local network levels the supply-demand gaps are much

smaller. For example, while Qatar and the UAE have enjoyed comfortable reserve margins in
recent years, Saudi Arabia, Oman and Kuwait have faced real challenges meeting demand,
especially during the summer months. Ageing plants also do not always operate at full design
capacity, further reducing the theoretical total output.
“As oil revenues decrease and the issue of water has risen up the political agenda, governments
have acted to try and dampen demand and reduce capital and operational expenditure. For
example, earlier this year Abu Dhabi imposed water tariffs for the first time for UAE nationals while
increasing existing prices for expatriate users as a means of decreasing subsidies and lowering
demand. The move emulated Dubai’s decision in 2010 to raise water tariffs with the result that
annual demand growth slowed from 10 percent to just 4 percent in the emirate,” James says.
“Our data shows that over the last 10 years, the region has invested USD 76 billion in standalone
water projects. If we add the power component investment of these desalination facilities, that
figure exceeds well over USD 100 billion. Going forward, we expect the largest investments to be
made in Saudi Arabia, Abu Dhabi, Oman and Kuwait, which have the steepest short-term demand
projections. The addition of more than 1,500MIGD of new capacity will likely require a similarly
large amount of investment.
A major driver of these investments will go towards developing less energy-intensive methods of
desalinating water, added James. Traditionally dominant forms of thermal distillation in the region,
such as multi-stage flash (MSF) or multiple-effect distillation (MED), require large amounts of
energy, and have become less attractive as GCC states find themselves burning increasing
amounts of hydrocarbons that could instead be conserved, exported or exploited to develop heavy
industry.
“Reverse osmosis (RO) membrane technology is becoming increasingly prevalent in the region
because it relies on a chemical rather than thermal solution to desalinating seawater. Not only
does the technology save on power, but it means countries can also lower their potential carbon
emissions,” says James.
In 2013, the UAE clean energy company Masdar launched a pilot program to test and develop
advanced energy-efficient seawater desalination technologies, such as reverse and forward
osmosis, suitable to be powered by renewable energy. The long-term goal of the program is to
implement renewable energy-powered desalination plants in the UAE and to have a facility at
commercial scale by 2020.
Four international water technology companies have been selected to construct small-scale
desalination plants along the Abu Dhabi-Dubai border in this phase of the pilot project that will run
until 2016. Water efficiency and sustainability form the core of the 2016 International Water
Summit, which brings together world leaders, field experts, academia luminaries, and business
innovators to accelerate the development of sustainable strategies and technologies.
“With growing demand and the large investments being made towards desalination projects in the
region, greater awareness and discussion is needed more than ever before around sustainable
practice,” James said. “Events like IWS allow industry professionals from around the world to
share their knowledge and expertise with decision makers and stakeholders who are increasingly
looking for the most energy efficient ways of producing consumable water.”
The International Water Summit, part of Abu Dhabi Sustainability Week, is slated on Jan. 18-21,
2016 at the Abu Dhabi National Exhibition Centre.

UAE: Petrofac Celebrates Sail-Away of First Modules to ZADCO's Upper Zakum
by Petrofac Ltd.
Petrofac Ltd. announced Monday that Petrofac Emirates, its Joint Venture with Nama Project
Services, in consortium with Daewoo Shipbuilding & Marine Engineering (DSME) has celebrated
the safe and successful sail-away of the first two modules for ZADCO’s Upper Zakum, UZ750 field
development which is located offshore Abu Dhabi, United Arab Emirates.
Gulf Piping Company W.L.L.
fabricated the two piperacks as
part of a wider scope of work,
which sailed from their yard in
Mussafah on a 50 mile (80
kilometer) sea journey to the
project’s south island. This
represented a combined
weight of more than 800 tons
with the largest module
approximately 197 feet (60
meters) long.
George Salibi, project director,
said: “This is a landmark
achievement for everyone
involved in the project. These
are the first two modular items that we’ve sailed and the success of the operation is testimony to
the dedication, efforts and teamwork of everyone involved.”

Mozambique Gas Projects Raise Risk Of Resource 'Curse'
Reuters + NewBase
Carlos Candido has been fishing in Mozambican waters for three decades, unaware until recently
of huge gas deposits beneath the ocean floor. Now the gas wealth is about to be released,
Candido wishes it had never been found.
Up the coast from where he lives in northern Mozambique, thousands of people face resettlement
to make way for planned gas projects in an area where money is already starting to flow, bringing
unwanted consequences such as a rise in prostitution.
Mozambique, one of the world's poorest countries, discovered the reserves off its coast between
2010-2013, offering an opportunity to transform the former Portuguese colony which was ravaged
by a 16-year civil war that ended in 1992.
Last week the government said U.S. energy company Anadarko and Italy's Eni would make final
investment decisions on planned liquefied natural gas (LNG) developments in the first quarter of
next year. This would launch projects that could bring more than $30 billion in investment and
make Mozambique one of the world's top three LNG exporters.
Yet recent signs of reckless government spending and an uptick in political violence have raised
concerns that Mozambique could be the latest African country to suffer the resource "curse", in
which an influx of petro-dollars suffocates the rest of the economy, encourages corruption and
stirs unrest.
Candido is unlikely himself to be resettled but doubts his community will benefit.
"We know change is coming," the 62-year-old told Reuters as he dragged his catch up a palm-
fringed beach in Pemba, a small fishing town where clusters of bamboo huts have been dwarfed
by gas company offices and new hotels. "But I don't see it getting better for us. The government
made big promises but all I see is rich foreigners and happy politicians."

President Filipe Nyusi won an election last year on promises to use money collected from energy
and mining to diversify the economy and provide work for the poor. The LNG projects themselves
will create 15,000 jobs plus another 200,000 indirectly, Standard Bank forecasts.
But with many of these short-term positions and 350,000 Mozambicans joining the job market
every year, they won't solve mass poverty.
Inequality And Conflict
Further up the coast from Pemba, there are plans for a vast 180-square km development around
Anadarko's LNG plant, including an airstrip, golf-course and shopping malls. Thousands of mostly
farmers and fishermen will be resettled. Civil society groups are concerned about people being
forcibly removed from their homes and losing livelihoods.
People in African countries rich in resources tend to be less literate, have shorter life
expectancies, higher rates of malnutrition and suffer more from domestic violence than those in
states without resources, a World Bank report said this month.
In countries such as Angola and Nigeria,
decades of oil and gas wealth have
enriched a local elite and given foreign
energy firms bumper profits but have
done little for millions of poor people,
stoking deadly periods of civil unrest.
"There is a good chance the gas will
increase inequality and, even more
seriously, it could raise the potential for
conflict," Titus Gwemende, Oxfam's extractive industry adviser in Mozambique, told Reuters.
There are already signs of political upheaval that could intensify when gas spoils increase.
Though Mozambique has been relatively stable since the end of the war there have been periods
of violence between Nyusi's ruling Frelimo party and its civil war opponent Renamo.
Last month there were two ambushes on the convoys of Renamo leader Afonso Dhlakama,
including one on Sept. 25 that killed up to 40 people. Dhlakama says Frelimo's leaders are trying
to kill him because he wants more power sharing but the ruling party says Renamo provoked the
attack by firing on a civilian minibus.
"Part of what Renamo is fighting for is a greater share of resources," said Barnaby Fletcher,
analyst at Control Risks. "The bigger those resources are, the higher the stakes."
"Warning Siren"
Once gas starts being exported, estimated in 2020, the government is expected to earn around
$20 billion a year from the developments, triple Mozambique's current annual budget. Foreign
donors are concerned about the government's ability to handle such sums of money given
relatively underdeveloped institutions to ensure transparency and accountability.

A controversial $850 million bond launched in 2012 to start state tuna-fishing company Ematum
has intensified fears that the government is not ready to handle windfalls. Around $500 million of
the proceeds turned out to be for defence spending and, so far, no details have been provided on
where exactly the money went.
Standard & Poor's downgraded Mozambique's credit rating in July, largely due to the Ematum
bond issue and rising debt levels. Mozambique's total debt has risen to 58 percent of its annual
economic output from 37 percent three years ago.
Finance Minister Adriano Maleiane, an economist who was not in charge when the bond was
launched, has promised to restructure Ematum's debt and improve transparency. "Ematum set a
warning siren off," one Maputo-based Western diplomat told Reuters. "They are spending money
before it has arrived."
Unless sharp improvements are made to reduce unemployment and improve education and social
welfare, poor Mozambicans are still likely to seek out whatever petro-dollars they can get.
"Some of my friends, they don't go to school. They work at night here," said 14-year-old Ijaia
Fargie, referring to the increase in prostitution in Pemba since gas developments began. "They
make a lot of money, sometimes 500 meticals ($10)."

China: policies aim to increase energy efficiency in buildings
Source: U.S. Energy Information Administration, International Energy Statistics
From 1998 to 2012, the energy consumption of buildings in China grew by about 7.7% per year,
much faster than China's average annual population increase, which was less than 1% per year.
This consumption growth was driven by growing incomes and modernization that significantly
increased the use of electricity and other forms of energy.
In an effort to reduce energy consumption in residential and commercial buildings, China has
implemented various energy efficiency policies and programs, including building energy codes,
green building ratings, minimum energy performance standards, voluntary ratings programs, and
energy-efficiency retrofits in existing buildings.
Building energy codes. China issued the first building energy code in 1986 for residential
buildings in the northern part of the country where space heating demand is highest. These codes
required a 30% reduction in space heating energy consumption compared with reference
buildings from 1980. The stringency of these codes has increased over time. There are currently
three energy codes for residential buildings in four climate zones (severe cold climate or cold
climate, hot summer/cold winter, and hot summer/warm winter) as well as one code for
commercial buildings. Urban residential and commercial codes are mandatory, while rural
residential energy codes are voluntary.
Green building ratings. China launched a green building
labeling system referred to as the Three-Star Rating Building
System in 2006. Under this program, buildings are rated from
one to three stars according to criteria that include use of
land, energy, and water, in addition to material efficiency,
indoor environmental quality, and operational management. In
addition to building design, the Three-Star Rating Building
System measures a building's performance and awards a

rating after one year of building operation.
Minimum energy performance standards. China adopted the first minimum energy
performance standards in 1989 for products such as refrigerators, room air conditioners, clothes
washers, and televisions. Since then, China has implemented additional minimum energy
performance standards for other major appliances, lighting, and cooling and heating equipment.
Energy efficiency labeling program. In 1998 China established a voluntary energy efficiency
labeling program, similar to the U.S. ENERGY STAR® program. In 2005, the Chinese government
introduced a mandatory energy information label, similar to the European Union categorical
energy label. Under this program, appliances are categorized based on their level of energy
efficiency performance.
Energy-efficiency retrofits of existing buildings. The Chinese government has paid particular
attention to retrofits and renovation of existing buildings. The purpose of this program is to bring
existing buildings to the level of code required for new construction. In 2011, the government
strengthened its obligation by requiring a 10% reduction in energy consumption per square meter
for commercial buildings and a 15% reduction for large commercial buildings with more than
20,000 square meters of floor area by the end of 2015. Under the Green Building Action Plan of
2013, more than 400 million square feet in residential homes and all eligible commercial buildings
in the northern heating zone are anticipated to be retrofitted by the end of 2015 and 2020,
respectively.
Energy demand in Chinese buildings is expected to continue to grow as a result of urbanization,
further increases in per capita disposable income, and demand for more comforts and services.
Upgrades of building energy efficiency performance standards, new technology development,
education and awareness programs, enforcement of energy efficiency policies, and improved
compliance could each play a role in reducing the future rate of consumption growth.

NewBase 27 October - 2015 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices extend losses as glut worries persist
Reuters + NewBase
Oil prices fell on Tuesday, on course for a third week of losses as U.S. inventory data is expected
to show another increase in crude stocks. Brent for December delivery had fallen 38 cents to
$47.16 a barrel by 0225 GMT, after settling the previous session down 45 cents, or almost 1
percent.
U.S. crude for December delivery dropped 51 cents to $43.47 a barrel, having ended the day
before down 62 cents, or 1.4 percent. The fall in U.S. crude pushed it below technical support
levels, said Ric Spooner, chief market analyst at Sydney's CMC Markets.
"While you can never be certain, (charts) suggests this is not going to be a false break. The latest
breakdown follows failure at the 200-day moving average a couple of weeks ago," he said in a
blog post.
U.S. commercial crude oil stockpiles likely rose for a fifth straight week, by an average of 3 million
barrels to 479.6 million, in the week ended Oct. 23, a preliminary Reuters survey taken ahead of
industry and official inventory data, showed on Monday.
While stocks of distillates, which include diesel and jet fuel, were seen falling 2 million barrels,
storage utilisation for distillates in the U.S. and Europe is nearing historic highs, according to a
report on Monday by Goldman Sachs.
Investors are also waiting for the outcomes of key policy meetings this week to give some
direction to the market, Le Brun said.
Oil price special
coverage

Iranian oil & gas production boost could wait some more
Douglas-Westwood + NewBase
The recent JCPOA agreement reached between Iran and the P5 +1, and approval by the
Iranian Parliament, is a big step forward in normalising Iran’s relations with the
international community, Douglas-Westwood, an energy intelligence group, said in its DW
Monday report.
DW said that, in anticipation of the removal of the economic sanctions, Iran has produced a list of
fifty oil & gas projects worth an estimated $185 billion that it intends to develop. These projects will
be presented at a post-sanctions summit in London planned for February 2016, and auctioned to
secure much-needed foreign investment in Iran’s oil & gas sector. A number of IOCs, including
BP, Shell and ENI, have expressed interest in re-entering the Iranian market, DW added.
Despite these positive developments, DW says, it takes a conservative view with regards to
Iranian hydrocarbons production. Total onshore production post-2015 is expected to rise steadily
at a 2% CAGR through to 2021, with additional output coming predominantly from projects in the
Khuzestan region, including the North & South Azadegan field developments.
Several phases of the giant offshore South Pars gas and condensate field development are
expected to come onstream within the next few years, contributing to a significant rise in offshore
hydrocarbons production to over 5 mboe/d in 2019. However, DW does not expect Iran to reach
its 2016 target of raising total oil production to over 4 mb/d until 2018.
DW says that there is significant upside potential for this forecast, with projects such as the North
Pars, Golshan and Ferdowsi field developments listed amongst those Iran plans to auction for
foreign investment. However, Iran’s ability to secure the necessary investment is dependent upon
its compliance with the terms of the JCPOA, some of which could take several months to
implement, the intelligence group explained.
Smooth implementation of the JCPOA will also depend on a continued dialogue between Iran and
International Atomic Energy Agency. It is therefore unlikely that Iran will be able to fulfil the
commitments needed to lift the sanctions before the end of 2015 or early 2016, DW says. DW
adds that uncertainty also remains surrounding the structure of the new Iranian Petroleum
Contract, due to be introduced at the London summit. Therefore, DW concludes, despite the
positive outlook for hydrocarbons production, limitations to growth in the short-to-medium term
remain.

NewBase Special Coverage
News Agencies News Release 27 Oct.. 2015
As oil industry bleeds jobs, Asia’s green energy drive offers bright spot
Reuters
Renewables are powering a rare bright spot in the energy industry, with record job hiring in solar,
wind and hydro partly offsetting the biggest round of job losses in the oil and gas sector in almost
two decades.
The boom in new green jobs is being led by Asia where governments in countries such as China
and India are embarking on massive programmes to use more renewable energy.
The fresh opportunities come as the oil sector is suffering its worst downturn since the late 1990s,
encouraging engineering students to rethink their options and even mid-career switches for some
who have spent more than a decade in the oil
sector.
“It’s a matter of time for me personally before I make the move,” said a Singapore-based project
manager for offshore construction at an oil and gas firm, who is considering shifting into solar after
15 years in the oil sector.

“For me, it’s not a question about running out of oil, but that the industry is losing popularity on the
consumer end,” said the manager, declining to be named due to his current employment status.
Direct and indirect employment in renewable energy jumped 18%, or by about 1.2mn, last year to
7.7mn globally, with most of the new jobs being created in Asia, according to the International
Renewable Energy Agency (IRENA).
Some of the biggest gains have come in countries such as China, India, Indonesia, Japan and
Bangladesh and the overall figure could top 16mn globally by 2030, IRENA said.
That stands in contrast to oil and gas, where more than 200,000 jobs have been cut worldwide
since oil prices collapsed last year, according to recruiter Swift Worldwide Resources.
The petroleum sector employs nearly 6mn, with more than ten times that number indirectly
employed, according to International Labour Organisation estimates. The latest job losses mark
the biggest drop since the last big oil price slump of 1997-98.
“The employment situation is a complete disaster,” said Didier Le Hech, who until recently headed
operations in Gabon, West Africa, for Weatherford International.
Le Hech, who was one of 11,000 staff laid off at the oil field service provider this year, said he was
looking for work in Southeast Asia, but given the tough market was prepared to cast his net
widely.

The layoffs are being nervously watched on campuses around the world by trainees in the oil and
gas industry.
“We’re keeping our options open,” said Faizzin Khafidz, a mechanical engineering student at the
National University of Singapore, who is doing an internship at Keppel Corp, one of the world’s
largest offshore rig builders.
“Personally I am open to opportunities to join the renewables sector especially if it is going to grow
as it should,” he added. Singapore is a major oil trading hub and servicing port, but the pain of the
downturn is being felt with many oil servicing ships and drilling platforms idled off the island city-
state.
Interest in green energy jobs is playing out at colleges.
New Delhi’s Teri University has 139 students enrolled in its renewable energy programmes this
year, up from 97 in 2014 and 69 in 2013.
“There are
huge
amounts of
western
money
flowing into
renewable
energy in
Asia,” says
David
Russell, chief
executive of
Equis Funds
Group, which
has invested
$2.4bn in
Asian
projects over
the last two years.
In order to keep up with demand for green jobs, recruiters have been forced to develop placement
expertise in renewables. “Because the oil and gas sector has been so hard hit, we’ve seen lots of
people attempting to transfer their skills across to renewable energy,” said Adam Carabetta, a
recruiter at Drake in Singapore.
The shift comes as many governments have vowed to curb carbon emissions by using more
renewables. China, the world’s largest greenhouse gas emitter, already employs 3.4mn people in
renewable energy and this raised its solar installation target for 2015 by 30%.
In India, IRENA expects 1mn new jobs to be created after the government pledged to triple
installed wind capacity and raise solar power capacity 33 fold by 2022.
This leaves some embarking on oil sector careers worried. “Most of my classmates picked
petroleum engineering because of the pay. But now we can’t even get a job,” said Michelle
Robinson, a third-year petroleum engineering undergraduate at Australia’s University of Adelaide.
“I sure hope prices recover before I graduate.”

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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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 27 Octopber 2015 K. Al Awadi

New base 715 special 27 october 2015

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