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NewBase Energy News 07 March 2018 - Issue No. 1149 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Middle East countries plan to add nuclear to their generation mix
U.S. E.I.A, International Energy Statistics, International Atomic Energy Agency, Reuters, and Bloomberg - contributor: Slade Johnson
Nuclear electricity generation capacity in the Middle East is expected to increase from 3.6
gigawatts (GW) in 2018 to 14.1 GW by 2028 because of new construction starts and recent
agreements between Middle East countries and nuclear vendors. The United Arab Emirates
(UAE) will lead near-term growth by installing 5.4 GW of nuclear capacity by 2020.
The growth in nuclear capacity in the Middle East is largely attributable to countries in the region
seeking to enhance energy security by reducing reliance on fossil fuel resources.
Fossil fuels accounted for 97% of electricity production in the Middle East in 2017, with natural gas
accounting for about 66% of electricity generation and oil for 31%. The remaining 3% of electricity
generation in Middle East countries comes from nuclear, hydroelectricity, and other renewables.
Middle East countries are also adopting nuclear generation to meet increasing electricity demand
resulting from population and economic growth. Regional electricity production was more than
1,000 billion kilowatt-hours (kWh) in 2017, and EIA expects electricity demand to increase 30% by
2028, based on projections in the latest International Energy Outlook.
This growth rate is higher than the average global growth rate of 18% over that same period, and
higher than the 24% expected growth in non-OECD (Organization for Economic Cooperation and
Development) countries.
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Developments in building nuclear capacity in the region include
Iran is building a two-unit nuclear plant, Bushehr-II, which is designed to add 1.8 GW of nuclear
capacity when completed in about 2026. Iran’s original Bushehr-I facility, which came online in
2011, was the first nuclear power plant in the Middle East. Bushehr-I has one 1.0 GW reactor unit
producing about 5.9 million kWh of electricity per year.
The UAE is currently constructing the four-unit Barakah nuclear power plant, which is expected to
be completed by the end of 2020. The 1.3 GW Barakah unit 1, which was started in 2012 and
completed in 2017, is expected to begin electricity production by mid-2018.
Turkey began construction of the Akkuyu nuclear power plant in late 2017. Akkuyu is a four-unit
facility designed to add 4.8 GW of nuclear capacity to Turkey’s generation mix. The first reactor
unit is scheduled to be completed by 2025.
Saudi Arabia is planning to build its first nuclear power plant and is expected to award a
construction contract for a 2.8 GW facility by the end of 2018. It has solicited bids from five
vendors from the United States, South Korea, France, Russia, and China to carry out the
engineering, procurement, and construction work on two nuclear reactors. Construction is
expected to begin in about 2021 at one of the two proposed sites—either Umm Huwayd or Khor
Duweihin.
Jordan plans to install a two-unit 2.0 GW nuclear plant and has been conducting nuclear feasibility
studies with Russia’s Rosatom since 2016. In early 2017, Jordan solicited bids for supplying
turbines and electrical systems, and construction is expected to begin in 2019 and to be
completed by 2024.
Source: U.S. Energy Information Administration, International Energy Outlook 2017, International Atomic Energy Agency, World Nuclear Association
More information about Middle East nuclear capacity projections is available in EIA’s International Energy Outlook 2017.
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OPEC to meet U.S Shale Producers to reduce Trade tensions
Reuters + NewBase
Policy tensions are curbing spirits that should be soaring in the U.S. energy sector. The
Organization of the Petroleum Exporting Countries will break bread with U.S. shale producers at
an industry confab in Houston, Texas, this week, a sign of American wildcatters’ influence on the
global market. But infrastructure bottlenecks and President Donald Trump’s new tariffs threaten to
prevent drillers from taking full advantage of their clout.
A year has gone by since global energy leaders last convened in the Lone Star State, and a few
things have become clearer. OPEC’s production cuts are chipping away at inventories and
sending oil prices higher.
That has helped U.S. shale drillers at least as much as the cartel, as they grow both market share
and profitability. The first supertanker shipped out of Louisiana at the end of February – a
milestone in U.S. exports. The International Energy Agency expects the United States to become
the world’s largest oil producer by 2019.
On Monday night OPEC leaders and shale producers will discuss over dinner how these factors
will affect global prices. Yet American industry executives note problems bubbling on their home
turf. Plains All American Pipeline Chief Executive Greg Armstrong said certain steel imports
should be exempted from tariffs proposed by Trump last week if the products aren’t made
domestically, which he said was the case for some steel pipe used by his company.
He cautioned, too, that renegotiating the North American Free Trade Agreement could have
negative consequences for companies that ship natural gas to and from Mexico. Senator Daniel
Sullivan of Alaska touted plans to open up federal lands in his state for drilling, but noted that it still
takes up to nine years to receive government approval to build a pipeline.
There are larger forces at play as well. Total CEO Patrick Pouyanné mentioned his ownership of
an electric car – noting its irony for an oil executive – when he explained how the French company
was shifting more toward natural gas than crude oil production for the long term because of its
growing use in generating electricity. American drillers focused on their own drive to become the
world’s most influential energy power might not want to lose sight of the bigger picture.
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Kenya: UAE solar start-up Pawame secures $2m in seed funding
Funding will help company expand further into Kenya and other African markets .The National - Alice Haine
UAE off-grid solar start-up Pawame has raised $2 million in seed funding from Gulf-
based investors to help grow its business in Kenya.
The social enterprise's funding round was led by CT Arabia, an investment firm created
by regional energy executives to invest in Pawame, with other inputs from senior
executives from Mena utility companies. These include Paddy Padmanathan, chief
executive of Acwa Power, who made a personal investment.
“With a vision to provide electricity to some of the remotest off grid households in sub-
Saharan Africa, Pawame offered me the ideal platform to do some good while
preserving some of my personal savings,” said Mr Padmantathan.
Abu Dhabi-based Pawame (pronounced “power me”) supplies affordable solar kits to
off-grid households in sub-Saharan Africa on a micro-finance basis.
The company was first launched in 2015 when chairman Alexandre Allegue, read a
statistic stating that electricity was still out of reach for over 700 million people in Africa.
He pledged to provide low-cost clean energy to 150 million low-income people living in
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remote areas, hiring his first employee in 2016 and selling the company's first solar
home system a few months later.
“The funding raised will allow us to further accelerate our current growth momentum by
expanding Pawame’s footprint in Kenya and other parts of Africa,” said Mr Allegue,
adding that the investment will also help the company finance its inventory and meets
its target to break even by the end of 2018.
“We have connected 4,000 homes to solar power in Kenya and have impacted more
than 20,000 lives. Using our pay-as-you-go financing, we provide not only solar
powered lights but also radio and TV.”
Philip Bahoshy, founder of the online start-up community Magnitt, said more start-ups
in the region are now tackling innovation challenges in the solar and renewable energy
space, with 30 listed on the Magnitt platform.
“This is the second largest investment in a solar focused startup in Mena with
Enerwhere, a start-up tackling transportable solar hybrid solutions for commercial/
industrial scale applications having previously raised $11m,” said Mr Bahoshy.
“Notably Pawame is another example of a UAE start-up benefitting from the growing
ecosystem and regional investors that is targeting the African market further cementing
the UAE as a hub for startups beyond just the Mena region.”
Customers using Pawame’s services in Africa pay an upfront fee of $30 to activate the
solar kit, followed by rent-to-own installments on a daily, weekly or basis for as little as
45 cents.
“This price is cheaper than their current alternative which is kerosene lighting and
mobile charging. The total cost is about $250 for the customer, with a three-year
warranty and a permanent customer service support,” said Mr Allegue, adding that
Pawame will soon launch a new funding round with strategic investors to accelerate its
growth.
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Congo (Brazzaville): Anglo African Oil & Gas awarded new
licence covering the Tilapia oil field ..Source: Anglo African Oil & Gas
Anglo African Oil & Gas has announced the following:
1. New 20-year licence
The Congolese state oil company, Société Nationale des Pétroles du Congo ('SNPC'), has
proposed and unconditionally recommended the award of a new licence covering the Tilapia oil
field in the Republic of the Congo. The Company has a 56 per cent interest in Tilapia, with SNPC
currently holding the other 44 per cent.
The 50 sq km Tilapia licence area is located in the prolific Lower Congo Basin and lies adjacent to
one billion-barrel fields producing from multiple pay zones.
The New Licence is proposed to have a 20-year term. Under the terms of the New Licence, the
Company's wholly owned subsidiary, Petro Kouilou ('PK'), will continue to hold a 56 per cent
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interest in and operatorship of Tilapia. It is not proposed that a signing bonus be paid, but the
Company has committed to drilling TLP-103, a new multi-horizon welltargeting:
• two million-barrels of proven reserves in the R1/R2 producing reservoirs;
• an 8.1-million-barrel gross contingent resource discovery in the Mengo interval; and
• a deeper prospect, which has been assigned 58.4 million-barrels of gross unrisked
prospective resources in the Djeno Sands.
• The Company will make a further announcement once the New Licence has formally been
ratified.
2. Drilling rig secured for TLP-103
Following the recommendation by SNPC that a New Licence be awarded, the Company has
entered into an agreement with Société de Maintenance Pétrolière ('SMP'), a French drilling
company with a depot in Gabon, for the supply of Rig-102 to drill TLP-103. Rig-102 was last used
to drill wells for TOTAL Gabon. Allowing for transportation into the Congo and recommissioning,
drilling operations will commence on or around 15 June 2018. Drilling is expected to take 64
days.
3. Site preparation for drilling of TLP-103
The Tilapia site has now been extensively renovated in preparation for drilling operations and the
anticipated significant increase in production. The scope of works includes resurfacing relevant
parts of the drill site, installation of a storage hangar, complete refurbishment of the storage tank
and a safety equipment upgrade.
4. Workover of TLP-102
The Company is entering into a significant turnkey contract with Schlumberger to carry out a an
intervention on the TLP-102 completion using coiled-tubing with a jetting tool attached with the
intention of removing any obstructions or clogging to the perforations. This work will occur during
April and May 2018 with a view to then bringing TLP-102 into production. This could result in
materially increased production. The Company will provide an update on the results of this work
once completed.
5. Workover of TLP-101
PK is due to start the dismantling and cleaning of flow lines on TLP-101 during the week
commencing 5 March. Once completed, there will be a series of tests and adjustments to ensure
that the well is producing at maximum levels.
Conclusion
The Company has now progressed all aspects of its planned works for the coming months: the
most important step towards the award of a new, 20-year licence over Tilapia has been achieved
and the Company now has operational certainty on the path to drilling TLP-103 and completing
the workovers of TLP-101 and TLP-102. The recommendation by SNPC that this 20-year licence
be awarded will dramatically improve the value of the Company.
David Sefton, Executive Chairman, commented:
'The recommendation by SNPC that the 20-year licence over Tilapia be awarded represents a major milestone for
AAOG. As previously announced, this is a critical first step before starting the drilling programme at Tilapia that will
scale up production and test the Djeno Sands, which have proved to be highly productive on adjacent fields.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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China's Energy Weapon Comes in One Color: Green
Investing in renewables helps blunt U.S. influence. By Liam Denning
The phrase "energy weapon" tends to conjure up grainy images of Americans sporting bad hair
and disco fashions waiting in line for gasoline. Might the 21st-century version involve solar panels
and electric cars instead?
Amy Myers Jaffe, a director at the Council on Foreign Relations, argues along these lines in a
recent essay for Foreign Affairs. China, having little to show for a $160 billion splurge of
acquisitions, loans and investments aimed partly at securing foreign supplies of fossil fuels,
is pivoting instead toward a greener form of energy geopolitics.
By investing in technologies such as solar power, batteries and electric vehicles, China is building
both a shield against extortion by fossil-fuel exporters and a means of reducing other countries'
dependence on fossil fuels in general. Both could help blunt the influence of its great rival
and aspiring energy dominatrix, the U.S.
Jaffe's aim is to warn the U.S. not to cede leadership in the new energy economy to its biggest
potential adversary. And there is something weird in 2018 about the U.S. touting its raw resources
while downplaying its tech edge (although tech plays a large and growing role in the shale boom).
Whether or not you think China can credibly mount a green counter-strategy, the important thing is
that it will almost certainly try.
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China attempting to seize leadership in developing alternative energy is, to use a technical term, a
no-brainer. And on several fronts:
• Pollution: The price of rapid industrialization has been the fouling of China's environment
(just as it was for the West last century). Only 2 percent of China's population breathes air
that meets the World Health Organization's air-quality guideline on particulates, according
to the International Energy Agency.
• Independence: While China is estimated to have substantial shale oil and (especially) gas
resources, don't expect an Asian version of the Permian basin to spring up anytime soon.
Chinese dependence on foreign fossil fuels is already higher than it ever was for Americans
-- and going higher. Depending on the U.S. Navy to keep vital sea lanes open to deliver
these cargoes is perhaps unwise.
• Capabilities: On the other hand, China does know a thing or two about manufacturing and
giving its domestic industries a nudge or two with favorable financing and political backing.
This offense launched from the factory floor is actually analogous to the U.S. one centered on
shale fields and export terminals in one key aspect.
The shale boom wasn't a Washington-led attempt to reshape energy geopolitics. Rather, it was a
product of raw competition in the U.S. exploration and production sector, fueled by high oil and
gas prices and an army of investors willing to fund it. Either way, it has reset the cost curve for oil
and gas lower, causing considerable discomfort for the likes of Saudi Arabia and Russia.
Even as that was going on, China was doing much the same to the solar-power market. As Varun
Sivaram details in "Taming the Sun," his new book on the future of solar power, Chinese
companies began capitalizing on existing expertise and technology in places like Australia and
Canada in the early 2000s to build a domestic industry. Then a combination of Chinese
government subsidies, including some for solar deployment in foreign export markets such as
Germany and Spain, turbocharged it:
Panel Beater
China dominates in the manufacturing of solar panels
Source: Bloomberg New Energy Finance
Note: Annual manufacturing capacity for crystalline silicon modules.
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Similar to shale's impact, China's rapid expansion of its solar-power supply chain also crammed
down the cost curve. The price per watt has dropped by 80 percent since 2010, causing many
manufacturers to go bankrupt and leading President Donald Trump to target solar modules for
tariffs (in vain, probably). On the other hand, it also spurred the rapid growth in solar-power
deployment across much of the world.
That could be a taste of what's to come.
China's pivot from simply sucking in fossil fuels for industrialization toward rising investment in
exportable new energy technologies represents a seismic shift in the global energy market
(see this). This is partly because China gets more leverage in its negotiations with all energy
suppliers as it expands its options (something that's happened already in oil and gas).
What makes this profound, though, is that China's investing in energies that aren't just different in
terms of degree but different in kind. As I wrote here, the expansion of manufactured energies and
electrification portends more fuel-on-fuel competition and deflation in the cost of raw energy. And
China is a highly motivated investor in that expansion.
Will China-sized investment in new energies predicated partly on externalities such as security
and pollution, and replete with subsidies, likely result in some bad bets and burned cash? Almost
certainly. Will it also cut the cost of these technologies and accelerate their spread? Quite
possibly.
The oft-forgotten lesson of the unsheathing of the oil weapon in the 1970s is that the resulting
backlash -- in the form of efficiency, diversification and the creation of futures markets -- ushered
in two decades of low prices.
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NewBase March 07 - 2018 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices fall as Trump adviser's exit stokes trade war fears
Reuters + NewBase
Oil prices fell on Wednesday, pulled down by declining stock markets after a key advocate for free
trade in the U.S. government resigned, stoking concerns Washington will go ahead with import
tariffs and risk a trade war.
Soaring U.S. crude oil production and rising inventories also dragged on crude prices, traders
said.
Gary Cohn, economic adviser to U.S. President Donald Trump, seen as a bulwark against
protectionist forces within the government, said on Tuesday he was resigning, triggering a more
than 1 percent fall in S&P 500 futures on Wednesday.
Crude oil followed suit, with Brent futures down 53 cents, or 0.8 percent, from their previous close
to $65.26 per barrel at 0747 GMT. U.S. West Texas Intermediate (WTI) crude futures were at
$62.14 a barrel, down 46 cents, or 0.7 percent.
Oil price special
coverage
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“The overhang from the Cohn resignation ... could see oil prices move lower during today’s
session,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in
Singapore.
A voice for Wall Street in the White House, Cohn’s move to resign came after he lost a fight over
Trump’s plans for hefty steel and aluminum import tariffs.
Major powers, including the European Union and China, have warned that such tariffs could lead
to retaliatory action and trigger a global trade war, which could grind to a halt economic growth
and, by extension, oil consumption.
Traders said oil prices were also weighed down by a reported rise in U.S. crude oil inventories.
Crude inventories rose by 5.661 million barrels last week to 426.880 million barrels, data from the
American Petroleum Institute showed on Tuesday.
“Oil prices applied brakes as market optimism reclines on bearish API weekly petroleum reports,”
brokerage Phillip Futures said in a note. Official data by the U.S. Energy Information
Administration (EIA) is due on Wednesday.
Overall, oil supplies are ample despite efforts led by the Organization of the Petroleum Exporting
Countries (OPEC) and Russia to withhold output in order to prop up prices. The EIA on Tuesday
made its latest in a series of upward revisions for U.S. crude oil production, which it now expects
to rise by more than 120,000 barrels per day (bpd) to 11.17 million bpd by the fourth quarter of
2018.
That would take the United States past Russia to become the world’s biggest oil producer. The
U.S. already passed top exporter Saudi Arabia late last year. For 2019, the EIA forecast a crude
production increase of 570,000 bpd to 11.27 million bpd.
“There appears to be nothing in the (API and EIA) data to push oil prices upwards for now,” said
Sukrit Vijayakar, director of energy consultancy Trifecta.
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NewBase Special Coverage
News Agencies News Release March 07-2018
Exxon CEO struggles to reverse Tillerson's legacy of failed bets
Reuters - Ernest Scheyder
Exxon Mobil Corp’s (XOM.N) $200 million write-down last month on abandoned ventures in
Russia - once its next big frontier - points to challenges facing Chief Executive Darren Woods in
his second year leading the world’s largest publicly
traded oil producer.
Some of the biggest bets taken by his predecessor Rex
Tillerson, now the U.S. secretary of state, have resulted
in billions of dollars in write-downs amid falling production
and a stock price that has long lagged peers.
That leaves Woods facing the prospect of slow growth
and billions of dollars in new spending that could weigh
on results for years. In 2018, the company plans capital
spending of about $24 billion - up about a quarter since
2016 - suggesting return on capital will get worse before
it gets better as the firm waits for a payoff from new exploration under Woods.
Graphic on Exxon's Quarterly Earnings:-
Rivals including Royal Dutch Shell (RDSa.L) and Chevron (CVX.N), by contrast, have capped or
cut their spending after finishing expansion projects. Exxon shares are down 18 percent since
Woods took over in January 2017. Shell is up 2 percent and Chevron is down about 3 percent
during the same period.
Woods is feeling the heat from investors who could have made more if they held shares in
Exxon’s rivals, as well as activist investors who want to see the company take renewable energy
more seriously. Analysts are pushing for more transparency on operations, and some have called
for Woods to sell assets.
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Graphic on Exxon's Cash Stumble:
Exxon declined to comment. A State Department spokesperson said Tillerson would have no
comment on Exxon matters and referred questions to the company.
Exxon is set to host its annual analyst meeting in New York on Wednesday.
The firm took the $200 million after-tax charge to walk away from its Russia Kara and Black sea
ventures with Rosneft (ROSN.MM). Five years ago, Exxon touted plans to spend more than $3
billion in Russia, but the firm halted operations in late 2014 when the U.S. sanctioned the country
over its military operations in Ukraine.
Exxon also took $1.3 billion in charges against Tillerson’s bets on natural gas in Mexico and
Canada this year. Last year, it took a $2.13 billion write-down a year earlier - mostly on Rocky
Mountain properties tied to Tillerson’s 2010 purchase of natural gas producer XTO Energy Inc. -
and disclosed it had reduced estimates of Canadian oil reserves by 3.5 billion barrels.
“There’s no question that, over the past handful of years, Exxon has been a relative
underperformer,” said Hank Smith, co-chief investment officer of the Haverford Trust, which has
held Exxon’s shares for two decades and recently added Royal Dutch Shell to its portfolio. “It’s
been frustrating.”
‘EPIC FAIL’
Weak results from production have this year cost Exxon its standing as the oil major generating
the most cash, a distinction that now goes to Shell. Now, Exxon is spending more cash on
projects that will take time to produce.
In Guyana, where the company is leading development of an offshore field estimated to hold at
least 3.2 billion barrels of oil, Exxon and partners have said they must spend more than $4 billion
on developing a project not expected to deliver oil until at least late 2019.
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More spending awaits Exxon in Qatar, Mozambique and Papua New Guinea for liquefied natural
gas projects, and for oil developments in Brazil, Ghana and Mauritania, the company has said.
Exxon paid more than $6 billion last year to double its acreage in the Permian Basin of Texas and
New Mexico, the largest U.S. oilfield. Exxon’s production there so far is relatively low compared to
peers, about 200,000 barrels of oil equivalent per day. Exxon says it plans to triple output there
through 2025.
Exxon Mobil Corp76.18
XOM.NNEW YORK STOCK EXCHANGE --- -0.09(-0.12%)
With all Woods’ development
plans, it seems unlikely
Exxon’s capital spending will
decline after this year, said
Simmons & Co analyst Guy
Baber.
The company did reverse
some of the write-downs it
took on reserves as oil prices
rose. But the company’s
inability to translate those
gains into robust profits in the
final quarter of 2017 was an
“epic fail,” said Raymond
James oil analyst Pavel
Molchanov.
LITTLE DATA FOR INVESTORS
Some investors say it’s too soon to evaluate Woods’ tenure despite Exxon’s lagging returns.
“There are few decisions that any one person, let alone Woods, could make in the first 12 to 13
months that would be able to really affect the company,” said Mark Stoeckle, portfolio manager of
Adams Natural Resources Fund Inc (PEO.N), which holds Exxon’s shares.
Exxon retains supporters on Wall Street. Its shares are recommended for purchase by 29 percent
of the 24 analysts that cover the company, according to Thomson Reuters data. Half rate the
shares as a “hold” and five advise “sell.”
Analysts recommending the stock cite the strength of Exxon’s assets.
Others, however, want more information on Exxon’s operations. Of the world’s five largest publicly
traded oil producers, Exxon ranks last for providing detailed data to investors, while BP Plc (BP.L)
is the best, according to an analysis of quarterly earnings regulatory filings by investment
researcher Redburn Ltd.
BP and Shell, for example, offer more than twice as much data as Exxon on each segment of
operations, Redburn found. “Exxon Mobil’s greatest challenge for 2018 might not its valuation,
assets or growth, but opening up to investors,” said Redburn oil and gas analyst Rob West.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
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NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
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 28 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 March 2018 K. Al Awadi
Copyright © 2018 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 endeavours 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
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Copyright © 2018 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 endeavours 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
Your Energy Consultant for the GCC area
Khaled Al Awadi
Copyright © 2018 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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Ne base 07 march 2018 energy news issue 1148 by khaled al awadi

  • 1. Copyright © 2018 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 endeavours 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 07 March 2018 - Issue No. 1149 Senior Editor Eng. Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Middle East countries plan to add nuclear to their generation mix U.S. E.I.A, International Energy Statistics, International Atomic Energy Agency, Reuters, and Bloomberg - contributor: Slade Johnson Nuclear electricity generation capacity in the Middle East is expected to increase from 3.6 gigawatts (GW) in 2018 to 14.1 GW by 2028 because of new construction starts and recent agreements between Middle East countries and nuclear vendors. The United Arab Emirates (UAE) will lead near-term growth by installing 5.4 GW of nuclear capacity by 2020. The growth in nuclear capacity in the Middle East is largely attributable to countries in the region seeking to enhance energy security by reducing reliance on fossil fuel resources. Fossil fuels accounted for 97% of electricity production in the Middle East in 2017, with natural gas accounting for about 66% of electricity generation and oil for 31%. The remaining 3% of electricity generation in Middle East countries comes from nuclear, hydroelectricity, and other renewables. Middle East countries are also adopting nuclear generation to meet increasing electricity demand resulting from population and economic growth. Regional electricity production was more than 1,000 billion kilowatt-hours (kWh) in 2017, and EIA expects electricity demand to increase 30% by 2028, based on projections in the latest International Energy Outlook. This growth rate is higher than the average global growth rate of 18% over that same period, and higher than the 24% expected growth in non-OECD (Organization for Economic Cooperation and Development) countries.
  • 2. Copyright © 2018 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 endeavours 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 Developments in building nuclear capacity in the region include Iran is building a two-unit nuclear plant, Bushehr-II, which is designed to add 1.8 GW of nuclear capacity when completed in about 2026. Iran’s original Bushehr-I facility, which came online in 2011, was the first nuclear power plant in the Middle East. Bushehr-I has one 1.0 GW reactor unit producing about 5.9 million kWh of electricity per year. The UAE is currently constructing the four-unit Barakah nuclear power plant, which is expected to be completed by the end of 2020. The 1.3 GW Barakah unit 1, which was started in 2012 and completed in 2017, is expected to begin electricity production by mid-2018. Turkey began construction of the Akkuyu nuclear power plant in late 2017. Akkuyu is a four-unit facility designed to add 4.8 GW of nuclear capacity to Turkey’s generation mix. The first reactor unit is scheduled to be completed by 2025. Saudi Arabia is planning to build its first nuclear power plant and is expected to award a construction contract for a 2.8 GW facility by the end of 2018. It has solicited bids from five vendors from the United States, South Korea, France, Russia, and China to carry out the engineering, procurement, and construction work on two nuclear reactors. Construction is expected to begin in about 2021 at one of the two proposed sites—either Umm Huwayd or Khor Duweihin. Jordan plans to install a two-unit 2.0 GW nuclear plant and has been conducting nuclear feasibility studies with Russia’s Rosatom since 2016. In early 2017, Jordan solicited bids for supplying turbines and electrical systems, and construction is expected to begin in 2019 and to be completed by 2024. Source: U.S. Energy Information Administration, International Energy Outlook 2017, International Atomic Energy Agency, World Nuclear Association More information about Middle East nuclear capacity projections is available in EIA’s International Energy Outlook 2017.
  • 3. Copyright © 2018 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 endeavours 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 OPEC to meet U.S Shale Producers to reduce Trade tensions Reuters + NewBase Policy tensions are curbing spirits that should be soaring in the U.S. energy sector. The Organization of the Petroleum Exporting Countries will break bread with U.S. shale producers at an industry confab in Houston, Texas, this week, a sign of American wildcatters’ influence on the global market. But infrastructure bottlenecks and President Donald Trump’s new tariffs threaten to prevent drillers from taking full advantage of their clout. A year has gone by since global energy leaders last convened in the Lone Star State, and a few things have become clearer. OPEC’s production cuts are chipping away at inventories and sending oil prices higher. That has helped U.S. shale drillers at least as much as the cartel, as they grow both market share and profitability. The first supertanker shipped out of Louisiana at the end of February – a milestone in U.S. exports. The International Energy Agency expects the United States to become the world’s largest oil producer by 2019. On Monday night OPEC leaders and shale producers will discuss over dinner how these factors will affect global prices. Yet American industry executives note problems bubbling on their home turf. Plains All American Pipeline Chief Executive Greg Armstrong said certain steel imports should be exempted from tariffs proposed by Trump last week if the products aren’t made domestically, which he said was the case for some steel pipe used by his company. He cautioned, too, that renegotiating the North American Free Trade Agreement could have negative consequences for companies that ship natural gas to and from Mexico. Senator Daniel Sullivan of Alaska touted plans to open up federal lands in his state for drilling, but noted that it still takes up to nine years to receive government approval to build a pipeline. There are larger forces at play as well. Total CEO Patrick Pouyanné mentioned his ownership of an electric car – noting its irony for an oil executive – when he explained how the French company was shifting more toward natural gas than crude oil production for the long term because of its growing use in generating electricity. American drillers focused on their own drive to become the world’s most influential energy power might not want to lose sight of the bigger picture.
  • 4. Copyright © 2018 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 endeavours 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 Kenya: UAE solar start-up Pawame secures $2m in seed funding Funding will help company expand further into Kenya and other African markets .The National - Alice Haine UAE off-grid solar start-up Pawame has raised $2 million in seed funding from Gulf- based investors to help grow its business in Kenya. The social enterprise's funding round was led by CT Arabia, an investment firm created by regional energy executives to invest in Pawame, with other inputs from senior executives from Mena utility companies. These include Paddy Padmanathan, chief executive of Acwa Power, who made a personal investment. “With a vision to provide electricity to some of the remotest off grid households in sub- Saharan Africa, Pawame offered me the ideal platform to do some good while preserving some of my personal savings,” said Mr Padmantathan. Abu Dhabi-based Pawame (pronounced “power me”) supplies affordable solar kits to off-grid households in sub-Saharan Africa on a micro-finance basis. The company was first launched in 2015 when chairman Alexandre Allegue, read a statistic stating that electricity was still out of reach for over 700 million people in Africa. He pledged to provide low-cost clean energy to 150 million low-income people living in
  • 5. Copyright © 2018 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 endeavours 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 remote areas, hiring his first employee in 2016 and selling the company's first solar home system a few months later. “The funding raised will allow us to further accelerate our current growth momentum by expanding Pawame’s footprint in Kenya and other parts of Africa,” said Mr Allegue, adding that the investment will also help the company finance its inventory and meets its target to break even by the end of 2018. “We have connected 4,000 homes to solar power in Kenya and have impacted more than 20,000 lives. Using our pay-as-you-go financing, we provide not only solar powered lights but also radio and TV.” Philip Bahoshy, founder of the online start-up community Magnitt, said more start-ups in the region are now tackling innovation challenges in the solar and renewable energy space, with 30 listed on the Magnitt platform. “This is the second largest investment in a solar focused startup in Mena with Enerwhere, a start-up tackling transportable solar hybrid solutions for commercial/ industrial scale applications having previously raised $11m,” said Mr Bahoshy. “Notably Pawame is another example of a UAE start-up benefitting from the growing ecosystem and regional investors that is targeting the African market further cementing the UAE as a hub for startups beyond just the Mena region.” Customers using Pawame’s services in Africa pay an upfront fee of $30 to activate the solar kit, followed by rent-to-own installments on a daily, weekly or basis for as little as 45 cents. “This price is cheaper than their current alternative which is kerosene lighting and mobile charging. The total cost is about $250 for the customer, with a three-year warranty and a permanent customer service support,” said Mr Allegue, adding that Pawame will soon launch a new funding round with strategic investors to accelerate its growth.
  • 6. Copyright © 2018 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 endeavours 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 Congo (Brazzaville): Anglo African Oil & Gas awarded new licence covering the Tilapia oil field ..Source: Anglo African Oil & Gas Anglo African Oil & Gas has announced the following: 1. New 20-year licence The Congolese state oil company, Société Nationale des Pétroles du Congo ('SNPC'), has proposed and unconditionally recommended the award of a new licence covering the Tilapia oil field in the Republic of the Congo. The Company has a 56 per cent interest in Tilapia, with SNPC currently holding the other 44 per cent. The 50 sq km Tilapia licence area is located in the prolific Lower Congo Basin and lies adjacent to one billion-barrel fields producing from multiple pay zones. The New Licence is proposed to have a 20-year term. Under the terms of the New Licence, the Company's wholly owned subsidiary, Petro Kouilou ('PK'), will continue to hold a 56 per cent
  • 7. Copyright © 2018 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 endeavours 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 interest in and operatorship of Tilapia. It is not proposed that a signing bonus be paid, but the Company has committed to drilling TLP-103, a new multi-horizon welltargeting: • two million-barrels of proven reserves in the R1/R2 producing reservoirs; • an 8.1-million-barrel gross contingent resource discovery in the Mengo interval; and • a deeper prospect, which has been assigned 58.4 million-barrels of gross unrisked prospective resources in the Djeno Sands. • The Company will make a further announcement once the New Licence has formally been ratified. 2. Drilling rig secured for TLP-103 Following the recommendation by SNPC that a New Licence be awarded, the Company has entered into an agreement with Société de Maintenance Pétrolière ('SMP'), a French drilling company with a depot in Gabon, for the supply of Rig-102 to drill TLP-103. Rig-102 was last used to drill wells for TOTAL Gabon. Allowing for transportation into the Congo and recommissioning, drilling operations will commence on or around 15 June 2018. Drilling is expected to take 64 days. 3. Site preparation for drilling of TLP-103 The Tilapia site has now been extensively renovated in preparation for drilling operations and the anticipated significant increase in production. The scope of works includes resurfacing relevant parts of the drill site, installation of a storage hangar, complete refurbishment of the storage tank and a safety equipment upgrade. 4. Workover of TLP-102 The Company is entering into a significant turnkey contract with Schlumberger to carry out a an intervention on the TLP-102 completion using coiled-tubing with a jetting tool attached with the intention of removing any obstructions or clogging to the perforations. This work will occur during April and May 2018 with a view to then bringing TLP-102 into production. This could result in materially increased production. The Company will provide an update on the results of this work once completed. 5. Workover of TLP-101 PK is due to start the dismantling and cleaning of flow lines on TLP-101 during the week commencing 5 March. Once completed, there will be a series of tests and adjustments to ensure that the well is producing at maximum levels. Conclusion The Company has now progressed all aspects of its planned works for the coming months: the most important step towards the award of a new, 20-year licence over Tilapia has been achieved and the Company now has operational certainty on the path to drilling TLP-103 and completing the workovers of TLP-101 and TLP-102. The recommendation by SNPC that this 20-year licence be awarded will dramatically improve the value of the Company. David Sefton, Executive Chairman, commented: 'The recommendation by SNPC that the 20-year licence over Tilapia be awarded represents a major milestone for AAOG. As previously announced, this is a critical first step before starting the drilling programme at Tilapia that will scale up production and test the Djeno Sands, which have proved to be highly productive on adjacent fields.
  • 8. Copyright © 2018 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 endeavours 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 China's Energy Weapon Comes in One Color: Green Investing in renewables helps blunt U.S. influence. By Liam Denning The phrase "energy weapon" tends to conjure up grainy images of Americans sporting bad hair and disco fashions waiting in line for gasoline. Might the 21st-century version involve solar panels and electric cars instead? Amy Myers Jaffe, a director at the Council on Foreign Relations, argues along these lines in a recent essay for Foreign Affairs. China, having little to show for a $160 billion splurge of acquisitions, loans and investments aimed partly at securing foreign supplies of fossil fuels, is pivoting instead toward a greener form of energy geopolitics. By investing in technologies such as solar power, batteries and electric vehicles, China is building both a shield against extortion by fossil-fuel exporters and a means of reducing other countries' dependence on fossil fuels in general. Both could help blunt the influence of its great rival and aspiring energy dominatrix, the U.S. Jaffe's aim is to warn the U.S. not to cede leadership in the new energy economy to its biggest potential adversary. And there is something weird in 2018 about the U.S. touting its raw resources while downplaying its tech edge (although tech plays a large and growing role in the shale boom). Whether or not you think China can credibly mount a green counter-strategy, the important thing is that it will almost certainly try.
  • 9. Copyright © 2018 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 endeavours 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 China attempting to seize leadership in developing alternative energy is, to use a technical term, a no-brainer. And on several fronts: • Pollution: The price of rapid industrialization has been the fouling of China's environment (just as it was for the West last century). Only 2 percent of China's population breathes air that meets the World Health Organization's air-quality guideline on particulates, according to the International Energy Agency. • Independence: While China is estimated to have substantial shale oil and (especially) gas resources, don't expect an Asian version of the Permian basin to spring up anytime soon. Chinese dependence on foreign fossil fuels is already higher than it ever was for Americans -- and going higher. Depending on the U.S. Navy to keep vital sea lanes open to deliver these cargoes is perhaps unwise. • Capabilities: On the other hand, China does know a thing or two about manufacturing and giving its domestic industries a nudge or two with favorable financing and political backing. This offense launched from the factory floor is actually analogous to the U.S. one centered on shale fields and export terminals in one key aspect. The shale boom wasn't a Washington-led attempt to reshape energy geopolitics. Rather, it was a product of raw competition in the U.S. exploration and production sector, fueled by high oil and gas prices and an army of investors willing to fund it. Either way, it has reset the cost curve for oil and gas lower, causing considerable discomfort for the likes of Saudi Arabia and Russia. Even as that was going on, China was doing much the same to the solar-power market. As Varun Sivaram details in "Taming the Sun," his new book on the future of solar power, Chinese companies began capitalizing on existing expertise and technology in places like Australia and Canada in the early 2000s to build a domestic industry. Then a combination of Chinese government subsidies, including some for solar deployment in foreign export markets such as Germany and Spain, turbocharged it: Panel Beater China dominates in the manufacturing of solar panels Source: Bloomberg New Energy Finance Note: Annual manufacturing capacity for crystalline silicon modules.
  • 10. Copyright © 2018 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 endeavours 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 Similar to shale's impact, China's rapid expansion of its solar-power supply chain also crammed down the cost curve. The price per watt has dropped by 80 percent since 2010, causing many manufacturers to go bankrupt and leading President Donald Trump to target solar modules for tariffs (in vain, probably). On the other hand, it also spurred the rapid growth in solar-power deployment across much of the world. That could be a taste of what's to come. China's pivot from simply sucking in fossil fuels for industrialization toward rising investment in exportable new energy technologies represents a seismic shift in the global energy market (see this). This is partly because China gets more leverage in its negotiations with all energy suppliers as it expands its options (something that's happened already in oil and gas). What makes this profound, though, is that China's investing in energies that aren't just different in terms of degree but different in kind. As I wrote here, the expansion of manufactured energies and electrification portends more fuel-on-fuel competition and deflation in the cost of raw energy. And China is a highly motivated investor in that expansion. Will China-sized investment in new energies predicated partly on externalities such as security and pollution, and replete with subsidies, likely result in some bad bets and burned cash? Almost certainly. Will it also cut the cost of these technologies and accelerate their spread? Quite possibly. The oft-forgotten lesson of the unsheathing of the oil weapon in the 1970s is that the resulting backlash -- in the form of efficiency, diversification and the creation of futures markets -- ushered in two decades of low prices.
  • 11. Copyright © 2018 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 endeavours 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 March 07 - 2018 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Oil prices fall as Trump adviser's exit stokes trade war fears Reuters + NewBase Oil prices fell on Wednesday, pulled down by declining stock markets after a key advocate for free trade in the U.S. government resigned, stoking concerns Washington will go ahead with import tariffs and risk a trade war. Soaring U.S. crude oil production and rising inventories also dragged on crude prices, traders said. Gary Cohn, economic adviser to U.S. President Donald Trump, seen as a bulwark against protectionist forces within the government, said on Tuesday he was resigning, triggering a more than 1 percent fall in S&P 500 futures on Wednesday. Crude oil followed suit, with Brent futures down 53 cents, or 0.8 percent, from their previous close to $65.26 per barrel at 0747 GMT. U.S. West Texas Intermediate (WTI) crude futures were at $62.14 a barrel, down 46 cents, or 0.7 percent. Oil price special coverage
  • 12. Copyright © 2018 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 endeavours 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 overhang from the Cohn resignation ... could see oil prices move lower during today’s session,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore. A voice for Wall Street in the White House, Cohn’s move to resign came after he lost a fight over Trump’s plans for hefty steel and aluminum import tariffs. Major powers, including the European Union and China, have warned that such tariffs could lead to retaliatory action and trigger a global trade war, which could grind to a halt economic growth and, by extension, oil consumption. Traders said oil prices were also weighed down by a reported rise in U.S. crude oil inventories. Crude inventories rose by 5.661 million barrels last week to 426.880 million barrels, data from the American Petroleum Institute showed on Tuesday. “Oil prices applied brakes as market optimism reclines on bearish API weekly petroleum reports,” brokerage Phillip Futures said in a note. Official data by the U.S. Energy Information Administration (EIA) is due on Wednesday. Overall, oil supplies are ample despite efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to withhold output in order to prop up prices. The EIA on Tuesday made its latest in a series of upward revisions for U.S. crude oil production, which it now expects to rise by more than 120,000 barrels per day (bpd) to 11.17 million bpd by the fourth quarter of 2018. That would take the United States past Russia to become the world’s biggest oil producer. The U.S. already passed top exporter Saudi Arabia late last year. For 2019, the EIA forecast a crude production increase of 570,000 bpd to 11.27 million bpd. “There appears to be nothing in the (API and EIA) data to push oil prices upwards for now,” said Sukrit Vijayakar, director of energy consultancy Trifecta.
  • 13. Copyright © 2018 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 endeavours 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 NewBase Special Coverage News Agencies News Release March 07-2018 Exxon CEO struggles to reverse Tillerson's legacy of failed bets Reuters - Ernest Scheyder Exxon Mobil Corp’s (XOM.N) $200 million write-down last month on abandoned ventures in Russia - once its next big frontier - points to challenges facing Chief Executive Darren Woods in his second year leading the world’s largest publicly traded oil producer. Some of the biggest bets taken by his predecessor Rex Tillerson, now the U.S. secretary of state, have resulted in billions of dollars in write-downs amid falling production and a stock price that has long lagged peers. That leaves Woods facing the prospect of slow growth and billions of dollars in new spending that could weigh on results for years. In 2018, the company plans capital spending of about $24 billion - up about a quarter since 2016 - suggesting return on capital will get worse before it gets better as the firm waits for a payoff from new exploration under Woods. Graphic on Exxon's Quarterly Earnings:- Rivals including Royal Dutch Shell (RDSa.L) and Chevron (CVX.N), by contrast, have capped or cut their spending after finishing expansion projects. Exxon shares are down 18 percent since Woods took over in January 2017. Shell is up 2 percent and Chevron is down about 3 percent during the same period. Woods is feeling the heat from investors who could have made more if they held shares in Exxon’s rivals, as well as activist investors who want to see the company take renewable energy more seriously. Analysts are pushing for more transparency on operations, and some have called for Woods to sell assets.
  • 14. Copyright © 2018 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 endeavours 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 Graphic on Exxon's Cash Stumble: Exxon declined to comment. A State Department spokesperson said Tillerson would have no comment on Exxon matters and referred questions to the company. Exxon is set to host its annual analyst meeting in New York on Wednesday. The firm took the $200 million after-tax charge to walk away from its Russia Kara and Black sea ventures with Rosneft (ROSN.MM). Five years ago, Exxon touted plans to spend more than $3 billion in Russia, but the firm halted operations in late 2014 when the U.S. sanctioned the country over its military operations in Ukraine. Exxon also took $1.3 billion in charges against Tillerson’s bets on natural gas in Mexico and Canada this year. Last year, it took a $2.13 billion write-down a year earlier - mostly on Rocky Mountain properties tied to Tillerson’s 2010 purchase of natural gas producer XTO Energy Inc. - and disclosed it had reduced estimates of Canadian oil reserves by 3.5 billion barrels. “There’s no question that, over the past handful of years, Exxon has been a relative underperformer,” said Hank Smith, co-chief investment officer of the Haverford Trust, which has held Exxon’s shares for two decades and recently added Royal Dutch Shell to its portfolio. “It’s been frustrating.” ‘EPIC FAIL’ Weak results from production have this year cost Exxon its standing as the oil major generating the most cash, a distinction that now goes to Shell. Now, Exxon is spending more cash on projects that will take time to produce. In Guyana, where the company is leading development of an offshore field estimated to hold at least 3.2 billion barrels of oil, Exxon and partners have said they must spend more than $4 billion on developing a project not expected to deliver oil until at least late 2019.
  • 15. Copyright © 2018 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 endeavours 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 More spending awaits Exxon in Qatar, Mozambique and Papua New Guinea for liquefied natural gas projects, and for oil developments in Brazil, Ghana and Mauritania, the company has said. Exxon paid more than $6 billion last year to double its acreage in the Permian Basin of Texas and New Mexico, the largest U.S. oilfield. Exxon’s production there so far is relatively low compared to peers, about 200,000 barrels of oil equivalent per day. Exxon says it plans to triple output there through 2025. Exxon Mobil Corp76.18 XOM.NNEW YORK STOCK EXCHANGE --- -0.09(-0.12%) With all Woods’ development plans, it seems unlikely Exxon’s capital spending will decline after this year, said Simmons & Co analyst Guy Baber. The company did reverse some of the write-downs it took on reserves as oil prices rose. But the company’s inability to translate those gains into robust profits in the final quarter of 2017 was an “epic fail,” said Raymond James oil analyst Pavel Molchanov. LITTLE DATA FOR INVESTORS Some investors say it’s too soon to evaluate Woods’ tenure despite Exxon’s lagging returns. “There are few decisions that any one person, let alone Woods, could make in the first 12 to 13 months that would be able to really affect the company,” said Mark Stoeckle, portfolio manager of Adams Natural Resources Fund Inc (PEO.N), which holds Exxon’s shares. Exxon retains supporters on Wall Street. Its shares are recommended for purchase by 29 percent of the 24 analysts that cover the company, according to Thomson Reuters data. Half rate the shares as a “hold” and five advise “sell.” Analysts recommending the stock cite the strength of Exxon’s assets. Others, however, want more information on Exxon’s operations. Of the world’s five largest publicly traded oil producers, Exxon ranks last for providing detailed data to investors, while BP Plc (BP.L) is the best, according to an analysis of quarterly earnings regulatory filings by investment researcher Redburn Ltd. BP and Shell, for example, offer more than twice as much data as Exxon on each segment of operations, Redburn found. “Exxon Mobil’s greatest challenge for 2018 might not its valuation, assets or growth, but opening up to investors,” said Redburn oil and gas analyst Rob West.
  • 16. Copyright © 2018 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 endeavours 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 NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE The Editor :”Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced daily (Sunday to Thursday) and sponsored by Hawk Energy Service – Dubai, UAE. 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 [email protected] [email protected] Khaled Al Awadi is a UAE National with a total of 28 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 March 2018 K. Al Awadi
  • 17. Copyright © 2018 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 endeavours 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 Thank you for sharing with us your comments and thoughts on the above issue, similarly we would like to share with our daily publications on Energy news via own NewBase Energy News - call us for details [email protected]
  • 18. Copyright © 2018 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 endeavours 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 Your Energy Consultant for the GCC area Khaled Al Awadi
  • 19. Copyright © 2018 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 endeavours 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 For Your Recruitments needs and Top Talents, please seek our approved agents below