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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, 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 05 May 2015 - Issue No. 597 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Saudi SABIC sustainable practices advance Saudi Gazette + NewBase SABIC 2014 Sustainability Report, entitled “Foundation for the Future” reflects the progress made by the company in integrating sustainable practices into its global business operations. The report outlined the latest information on the company’s progress on various dimensions of sustainability value creation. It highlighted performance in integrating the environmental, social and economic dimensions of sustainability into the company’s core business approach. Yousef Al-Benyan, SABIC acting Vice Chairman and CEO, said “This is our fourth report. It reflects our ongoing journey toward achieving the highest level of performance possible in sustainability, which is fundamental to our business strategy. We are continually looking for new ways to integrate it into our business, allowing us to improve, grow, innovate and transform to achieve our goals.” Commenting on what steps SABIC is taking to drive sustainable innovation, Al-Benyan said “we have invested in relationships with multiple globally acclaimed universities and are expanding our internal innovation resources – both by building and expanding technology centers and by attracting and growing talented scientists. In addition, we have embedded sustainability assessments into our research and development process to grow our portfolio of more sustainable products.” Atieh Abu Raqabah, General Manager, SABIC Corporate Sustainability, said “sustainability is an endless journey for SABIC that brings improvement to the business and value to its stakeholders, as reflected in the 2014 report. Innovation, creating sustainability solutions, and engaging its stakeholders more completely in its sustainability journey remain high priorities for SABIC.” https://www.sabic.com/corporate/en/images/sustainability_Report_2014_tcm12-15473.PDF
Transcript

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,

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 05 May 2015 - Issue No. 597 Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE

Saudi SABIC sustainable practices advance Saudi Gazette + NewBase

SABIC 2014 Sustainability Report, entitled “Foundation for the Future” reflects the progress made by the company in integrating sustainable practices into its global business operations. The report outlined the latest information on the company’s progress on various dimensions of sustainability value creation. It highlighted performance in integrating the environmental, social

and economic dimensions of sustainability into the company’s core business approach. Yousef Al-Benyan, SABIC acting Vice Chairman and CEO, said “This is our fourth report. It reflects our ongoing journey toward achieving the highest level of performance possible in sustainability, which is fundamental to our business strategy. We are continually looking for new ways to integrate it into our business, allowing us to improve, grow, innovate and transform to achieve our goals.” Commenting on what steps SABIC is taking to drive sustainable innovation, Al-Benyan said “we have invested in relationships with multiple globally acclaimed universities and are expanding our internal innovation resources – both by building and expanding technology centers and by attracting and growing talented

scientists. In addition, we have embedded sustainability assessments into our research and development process to grow our portfolio of more sustainable products.” Atieh Abu Raqabah, General Manager, SABIC Corporate Sustainability, said “sustainability is an endless journey for SABIC that brings improvement to the business and value to its stakeholders, as reflected in the 2014 report. Innovation, creating sustainability solutions, and engaging its stakeholders more completely in its sustainability journey remain high priorities for SABIC.”

https://www.sabic.com/corporate/en/images/sustainability_Report_2014_tcm12-15473.PDF

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,

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

Duqm Development awards design consultancy contract BYTIMES NEWS SERVICE + NewBase

The Duqm Development Company (DDC) has awarded a contract to AECOM, a leading professional and

technical services consultant, to develop the feasibility study, master plan and detailed design for Phase II of

the Duqm Frontier Town, Oman.

"To deliver this modern residential community, we have partnered with a consultant that ranks among the

top design consultants in the world," said Sheikh Ibrahim Sultan Alhosni, chief executive officer of DDC.

"AECOM will work in conjunction with DDC to develop a dynamic and economically viable master plan

that will bring our vision for the Duqm Frontier Town to life," he added.

The first stage of the contract includes a feasibility study and multiple concept master plans. Thereafter

AECOM will be responsible for the detailed master plan, detailed design, preparation of the tenders, and

supervision of construction contracts.

"AECOM is delighted and honoured to have been awarded the project to provide consultancy services for

Phase II of the Duqm Frontier Town," said Riad Nashif, executive vice president, Middle East and

managing director, United Arab Emirates (UAE) and Oman.

Strategic significance

"This confidence in AECOM is a testament of our long history in Oman and our commitment to actively

participate in the country's development. Given the strategic significance of the development of Duqm to

Oman, we have actively sought out such exciting opportunities there, and with DDC in particular, to support

its development utilising our full, and best in class, range of services." Phase II will cover an area of 29.2

hectares and will include residential units and an international school.

Duqm Refinery awards Galfar major tender

Duqm Refinery announced that Galfar Engineering and Contracting has been awarded the tender for site

preparation work for its upcoming refinery at the Special Economic Zone in Duqm.

Site preparation work is expected to start in the second quarter of 2015 and complete during the second

quarter of 2016. The site preparation work comprises the excavation and compaction of more than 12

million m3 of soil, and will lay the groundwork to commence refinery construction in 2016. Once the

refinery is completed, it will have the capacity to process around 230,000 barrels of crude oil per day.

Diesel, jet fuel, naphtha and LPG are to be its primary products.

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,

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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Jacobus Nieuwenhuijze, Project Director of Duqm Refinery said, "The site preparation work will be the first

activity on the refinery site and this is an exciting milestone for the project. This ensures that the site will be

ready for major construction of the refinery."

"We are delighted that many Omani contractors had expressed interest in tendering for the contract and this

award will directly benefit the local community of Duqm and Al Wusta region," he further added.

Duqm Refinery will be one of the growth engines for the special economic zone. It will provide

development opportunities for new projects that will directly and indirectly interface with the refinery.

These projects will look to benefit from the refinery's products as well as provide different logistic services

to the refinery.

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,

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

Kuwait/Saudia : McDermott nets more work on Hout field platform

McDermott International, Inc. has received a large contract amendment from Al-Khafji Joint Operations (KJO) for a platform in the Hout field, located 26 miles east of Al-Khafji in the divided zone between Kuwait and the Kingdom of Saudi Arabia.

According to the press release, the work on the brownfield project is expected to be executed through the second quarter of 2017 and is included in McDermott’s first quarter 2015 backlog.

The large contract amendment is an addition to the initial scope for KJO’s Hout project awarded to McDermott in March 2012. The original scope was for an engineering, procurement, construction and installation (EPCI) project for structures including a tripod jacket, deck and flare tower and some 26 miles of 24-inch subsea pipeline.

Additionally, McDermott was to carry out modifications to a number of existing platforms in the Hout field through its dedicated brownfield division in Jebel Ali.

“This award is a customer relationship success story,” said Tom Mackie, McDermott’s Vice President, Middle East. “We have always strived to deliver the best production solution to KJO and today’s award demonstrates continued confidence in McDermott’s capabilities.

“McDermott wins on our ability to deliver a differentiated, full scope EPCI solution for brownfield or greenfield projects to enhance the safety, operability and maintainability of our customer’s facilities. These unique capabilities set us apart for the large contract amendment at KJO’s Hout brownfield production facility.”

The scope includes EPCI for one new platform and two bridges with a total weight of approximately 3,300 tons, including significant modifications at the existing complex.

The company says that the engineering is expected to be carried out by its detailed engineering teams. Structures are scheduled to be fabricated at the company’s Dubai-based fabrication facility. Vessels from the McDermott global fleet are scheduled to undertake the installation work.

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,

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

Tunisia: Mazarine Energy & ETAP discover oil in Chouchet El Atrous-1 (Cat-1) well

in the Zaafrane permit, central Tunisia

Mazarine Energy, a private international upstream oil and gas exploration and production company, has announced that its subsidiary, Mazarine Energy Tunisia, and partner ETAP (Entreprise Tunisienne d’Activités Pétrolières) have discovered 38m of net oil-bearing reservoir in well Cat-1 in the Zaafrane permit in central Tunisia.

The main objective of well Cat-1 was to test the hydrocarbon potential of the Ordovician El Hamra and El Atchane Formations. Extensive logging and sampling proved the El Hamra and El Atchane sands to contain 19m and 19m of net pay respectively. During a production test, the Cat-1 well flowed, constrained by surface facilities, at a rate of 4,300 barrels of oil per day and 395,000 cubic meters of natural gas per day.

Mazarine discovers oil in the Cat-1 well in Central Tunisia

The Cat-1 well is the first well in a two-well drilling campaign. The Zaafrane permit spans an area of 5,168 square kilometres within a historically prolific oil- and gas producing region. Mazarine Energy is the operator of the Zaafrane permit, with ETAP and MEDEX as partners. The well was drilled by CTF (Compagnie Tunisienne de Forage) to a total depth of 3,950m.

“We are delighted to announce the first discovery in the Zaafrane permit. The Cat-1 well is not only a success in its own right; it also upgrades the resource potential of a string of prospects in this large permit, notably DGH-1, our next well in the sequence,” said Mazarine Energy Executive Chairman Edward van Kersbergen. “We look forward to the fast-track development of this discovery.”

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,

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

Philippines: Otto Energy contracts Maersk Venturer drill ship for

the Hawkeye-1 exploration well Source: Otto Energy + NewBase

Otto Energy has executed a binding contract with Maersk Drilling to secure the Maersk Venturer ultra-deep water drill ship for the Hawkeye-1 exploration well. The Gross Prospective Resource Best Estimate for the Hawkeye Prospect is 112mmbo (74mmbo net to Otto). Success at Hawkeye will unlock a significant new hydrocarbon play in the deep water Southern Palawan region with material follow up potential already mapped on 3D seismic.

The Maersk Venturer is one of the most modern and advanced drill ships in the world and Otto is pleased to have secured a rig of this capability to drill the Hawkeye-1 exploration well. The window for commencement of mobilisation to the Hawkeye-1 drilling location will be between 17 July and 15 August 2015. Key services and equipment will continue to be mobilised and secured by Otto in the period leading up to this date. The well is expected to take around 23 days to drill from rig arrival until release. The majority of services have been contracted and total expected cost remains within guidance of US$30 to $35 million (dryhole well cost estimate). Should the well encounter hydrocarbons, more detailed evaluation, including well logging, will be undertaken and which would increase the overall cost by around US$2-3 million. Otto is fully funded for such a circumstance. As a result of the US$24.5 million committed by BHP Billiton and the farm-down to Red Emperor Resources, Otto will be free-carried for the drilling of Hawkeye-1 whilst retaining a significant 78.18% working interest. Further, Otto has received an expression of interest from the Philippine National Oil Company – Exploration Company to farm-in for a 15% interest and the parties are currently awaiting required approvals from the Office of the President in order to close this transaction. Matthew Allen, Otto’s CEO said: 'Final preparations for the drilling of the Hawkeye-1 exploration well are considerably advanced. This is a very exciting time for Otto as we undertake this important and potentially high impact, drilling event on behalf of the Philippines Department of Energy and our joint venture partners. With a significant free carried interest, Hawkeye-1’s success would be transformational for Otto'.

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,

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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Nigeria: Erin Energy commences Oyo field production, offshore

Source: Erin Energy

Erin Energy has commenced production from the Oyo-8 well located in OML 120 offshore Nigeria. Erin Energy is the operator of the Oyo field and has a 100% interest in the block.

Production Commences for Oyo-8 (Photo: Business Wire)

Oyo-8, which was drilled in the third quarter of 2014 to a total depth of approx. 6,100 feet (1,850 meters), was successfully completed horizontally in the Pliocene formation. Oyo-8 is located in approx. 1,000 feet (300 meters) of water and is producing into the Floating Production Storage and Offloading vessel, Armada Perdana. The well is expected to produce approx. 7,000 barrels of oil per day following cleanup and optimization of choke size.

Segun Omidele, Senior Vice-President of Exploration and Production commented:

'We are quite pleased with the initial well performance and will be working over the next few days to optimize the flow rate. Brin ging this well on production is a milestone achievement for our organization and was made possible through the hard work and dedication of our entire team and our service providers.

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,

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

US:Shale Extraction chemicals contaminated ground water proved

Bloomberg: Chemical compounds used to extract natural gas were found in three water samples from Pennsylvania’s Marcellus Shale region, according to a study published Monday in the Proceedings of the National Academy of Sciences.

The contamination occurred at three Bradford County households whose owners settled a lawsuit with Chesapeake Energy Corp. in 2012 after natural gas polluted their well water. The additional chemicals may have mixed with groundwater after a pit leak from a conventional well or when nearby drilling drove them toward the aquifer, according to the study.

“We’re not claiming that it’s from hydraulic fracturing,” Garth Llewellyn, a hydrogeologist at Appalachia Hydrogeologic & Environmental Consulting LLC, and the study’s lead author, said in a telephone interview Monday. “We’re not trying to make assertions where we shouldn’t be. We’re looking at all the possibilities.”

In hydraulic fracturing, water and chemicals are blasted into rock formations to extract oil and gas. Drillers, which last month decried the first U.S. regulations for fracking on federal land, have argued the practice is safe and, along with conventional gas extraction, doesn’t jeopardize groundwater supplies.

The contaminants in the water samples, including the chemical compound 2-Butoxyethanol, or 2-BE, were found in quantities that didn’t pose immediate health risks, Llewellyn said. Additional research is needed to determine exactly which chemicals were present and in what quantities they’re harmful.

“I really don’t care if it’s fracking or if it’s just drilling fluid -- if it’s hazardous, it’s hazardous to your health,” Llewellyn said. “That’s really what we’re trying to emphasize and make sure the general public understands -- to stop thinking just about hydraulic fracturing and more about the overall process of oil and gas development.”

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,

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

Special Report : World’s ocean valued at $24 trillion

The value of the ocean’s riches rivals the size of the world’s leading economies, but its resources are

rapidly eroding, according to a report released by WWF on Monday. The report titled “Reviving the Ocean

Economy: The case for action 2015” analyzes the ocean’s role as an economic powerhouse and outlines

the threats that are moving it toward collapse. The value of key ocean assets is conservatively estimated in

the report to be at least $24 trillion – over 15 times the asset size of The Abu Dhabi Investment Authority

(ADIA) and the Saudi Arabian Monetary Agency (SAMA) combined.

The ADIA has $773 billion of assets, while the SAMA’s assets are valued at $757 billion. If compared to the world’s top 10 economies, the ocean would rank seventh with an annual value of goods and services of $2.5 trillion.

The report, produced in association with The Global Change Institute at the University of Queensland and The Boston Consulting Group (BCG), a global management consulting firm and the world’s leading advisor on business strategy, is the most focused review yet of the ocean’s asset base. Reviving the Ocean Economy reveals the sea’s enormous wealth through assessments of goods and services ranging from fisheries to coastal storm protection, but the

report also describes an unrelenting assault on ocean resources through over-exploitation, misuse and climate change. “The ocean rivals the wealth of the world’s richest countries, but it is being allowed to sink to the depths of a failed economy,” said Marco Lambertini, Director General of WWF International. “As responsible shareholders, we cannot seriously expect to keep recklessly extracting the ocean’s valuable assets without investing in its future.” The report said more than two-thirds of the annual value of the ocean relies on healthy conditions to maintain its annual economic output. Collapsing fisheries, mangrove deforestation as well as disappearing corals and seagrass are threatening the marine economic engine that secures lives and livelihoods around the world. “Being able to quantify both the annual and asset value of the world’s oceans shows us what’s at stake in hard numbers; economically and environmentally. We hope this serves as a call for

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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business leaders and policymakers to make wiser, more calculated decisions when it comes to shaping the future of our collective ocean economy,” said Douglas Beal, Partner and Managing Director at BCG Middle East. Research presented in the report demonstrates that the ocean is changing more rapidly than at any other point in millions of years. At the same time, growth in human population and reliance on the sea makes restoring the ocean economy and its core assets a matter of global urgency.

“The ocean is at greater risk now than at any other time in recorded history. We are pulling out too many fish, dumping in too many pollutants, and warming and acidifying the ocean to a point that essential natural systems will simply stop functioning,” added Ove Hoegh-Guldberg, the report’s lead author and Director of the Global Change Institute in Australia’s University of Queensland. Climate change is a leading cause of the ocean’s failing health. Research included in the report shows that at the current rate of warming, coral reefs that provide food, jobs and storm protection to several hundred million people will disappear completely by 2050. More than just warming waters, climate change is inducing increased ocean acidity that will take hundreds of human generations for the ocean to repair. Overexploitation is another major cause for the ocean’s decline, with 90 percent

of global fish stocks either over-exploited or fully exploited. The Pacific bluefin tuna population alone has dropped by 96 percent from unfished levels. It is not too late to reverse the troubling trends and ensure a healthy ocean that benefits people, business and nature. Reviving the Ocean Economy presents an eight-point action plan that would restore ocean resources to their full potential. Among the most time-critical solutions presented in the report are embedding ocean recovery throughout the UN’s Sustainable Development Goals, taking global action on climate change and making good on strong commitments to protect coastal and marine areas. “The ocean feeds us, employs us, and supports our health and well-being, yet we are allowing it to collapse before our eyes. If everyday stories of the ocean’s failing health don’t inspire our leaders, perhaps a hard economic analysis will. We have serious work to do to protect the ocean starting with real global commitments on climate and sustainable development,” said Lambertini. WWF’s global ocean campaign, Sustain Our Seas, builds on decades of work by the organization and its partners on marine conservation. WWF is working with governments, businesses and communities to encourage leaders to take urgent measures to revive the ocean economy and protect the lives and livelihoods of billions of people around the world

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,

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

Oil Price Drop Special Coverage

Brent crude slips towards $66 on Saudi plan to halt Yemen bombing Reuters + NewBase

Brent crude oil futures slipped towards $66 a barrel on Tuesday, falling from a 2015 high, as Saudi Arabia considered halting bombing in Yemen to allow the delivery of aid, which eased concerns about oil supply from the Middle East.

A stronger U.S. dollar also weighed on the dollar-denominated commodity, while investors waited for data on U.S. commercial crude oil inventories later this week for more direction.

Brent crude oil futures were down 5 cents at $66.40 a barrel at 0357 GMT, after touching a 2015 high of $67.10 on Monday. U.S. crude oil futures fell by 6 cents to $58.87 a barrel.

"The stronger U.S. dollar and also news out of Saudi Arabia that they are halting the bombings in Yemen are two push-pull factors affecting the oil

prices at the moment," said Ben Le Brun, a market analyst at OptionsXpress in Sydney.

The Saudi foreign minister said on Monday the Saudi-led Arab alliance conducting air strikes against Houthi fighters in Yemen was considering calling a truce in specific areas to allow humanitarian supplies to reach the country.

Phillip Futures Energy analysts do not expect prices to change by more than 1 percent on Tuesday as long as geopolitical tensions remain the same.

Investors are also waiting for inventory data out of the United States later this week, Le Brun said. "Obviously if we see a further tightening in supplies in the U.S., then that might be a catalyst to drive prices higher."

A Reuters poll on Monday suggested commercial crude stockpiles had risen nearly 2 million barrels last week, building for a record 17th straight week. Industry group the American Petroleum Institute will issue its own expectations for last week's stockpiles on Tuesday, before official data from the government's Energy Information Administration on Wednesday.

Libyan oil production has fallen to less than 500,000 barrels a day, a third of what it used to pump in 2010. A U.S. delegation will visit Iran this week to review energy investment opportunities as Tehran negotiates a final deal with world powers on its nuclear programme.

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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Almost 100.000 oil workers out of work due to oil price plunge Source: Douglas-Westwood

The oil & gas industry currently suffers a shortage of mid-career professionals primed for leadership & supervisory roles, the legacy of the last oil price downturn in the 1980s to mid-90s, Douglas Westwood, an energy industry intellignce group, writes in its DW Monday report.

At that time the industry endured significant job losses, and hiring came to a standstill. As a result of the limited talent added, the group of individuals advancing into supervisory or eventual leadership positions in the oil and gas industry is notably small.

Since oil price started declining late last summer, layoffs in today’s industry are nearing 100,000 worldwide. Oilfield service companies Schlumberger, Baker Hughes, and Halliburton announced layoffs of around 20,000, 10,500, and 9,000 employees respectively, while E&Ps BP and Chevron each announced layoffs approaching 10,000 of their employees.

According to a survey completed in January 2015 by Rigzone, 44% of the surveyed companies indicated that they plan to hire fewer workers over the next six months while 5% indicated they plan to completely halt hiring efforts.

Although the oil & gas industry employs numbers of low-skilled workers, the lifeblood of the industry is the variety of specialised engineers, technicians and rig crews who boast years of involvement in the field along with formal training or university degrees.

Continuing widespread layoffs, frozen or reduced pay checks and the effects a lengthy downturn will have on the industry can dissuade such individuals from pursuing careers in oil & gas and encourage college graduates to move into more stable industries.

Just as the legacy of the 1980s-90s created a shortage of experienced workers – contributing to rising costs, execution challenges, and safety concerns – the numbers of lost personnel, both current and future, threatens the long-term capacity of the industry. To many in the business it feels like history is repeating itself.

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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Norway: What happens to a wealthy, oil-reliant nation when crude prices collapse? bloomberg

Yngve Slyngstad, who manages Norway's $900 billion wealth fund, has said many times in the past year that in a low-and even negative-interest rate world the fund will not be able to hit its expected 4 percent real return.

The real world impact is that fiscal spending will need to be checked.

The Norwegian government has a self-imposed rule capping use of the fund's money in its budget to the expected return. That has meant increased spending each year, in krone-terms, as the fund has ballooned in size. The current minority coalition said in October it will use a record 164 billion kroner ($21.8 billion) in 2015, or about 3 percent of the fund. Slyngstad revealed Wednesday that in the first quarter the fund received the lowest amount of new capital in 16 years. The Finance Ministry transferred a mere 5 billion kroner ($662.5 million), a far cry from the 128 billion kroner in the third quarter of 2008 after crude prices peaked at about $147. Inflows are generated from taxes on oil and gas, petroleum field ownership and dividends from its majority stake in Statoil ASA, its biggest crude producer. Oil is not far from the $60 threshold that central bank Governor Oeystein Olsen in February warned would mean that transfers to the fund ``may come to a halt.'' Norway's vast petroleum reserves in the North Sea and all the way up to the Arctic has made it very wealthy. The fund was designed to safeguard income for future generations when the oil industry is no longer the main growth engine. For now, letting oil and gas makeup almost a quarter of its gross domestic product has helped it keep ubiquitous threats such as joblessness and a shrinking economy at bay (that giant oil fund has done its part here, too).

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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With the government preparing to unveil a revised budget due May 12, it faces pressure from all sides. Survey unemployment reached 4.1 percent in February, the highest since at least 2006, so there are expectations the budget will provide some relief.

But lawmakers today risk spending money they say is for their great-great-grandchildren -- all on an economy that, compared to its neighbors, is doing pretty well.

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 For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE

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NewBase energy news is produced daily (Sunday to Thursday) and

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For additional free subscription emails please contact Hawk Energy

Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010

Mobile: +97150-4822502 [email protected] [email protected]

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 05 May 2015 K. Al Awadi

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,

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


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