NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf

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NewBase Energy News 19 April 2024 No. 1717 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE Alterra and Climate finance body team up to scale
investment in emerging economies
The National + NewBase
The Global Climate Finance Centre (GCFC), a private-sector-focused think tank and research hub,
and Alterra, a $30 billion climate fund, have joined forces to scale up climate investment in emerging
and developing economies.
The partnership, which will leverage the combined strengths of both organisations, will focus on
investment opportunities, innovative finance approaches and knowledge sharing, they said in a
statement on Thursday.
“Financing the new climate economy will require unprecedented levels of collaboration, innovative
approaches and tools to unlock capital flows at scale into transformative solutions and into
developing countries,” said Majid Al Suwaidi, Cop28 director general and chief executive of Alterra.
“Our new partnership with GCFC is an important step towards easing the bottlenecks that impede
climate investments.”
ww.linkedin.com/in/khaled-al-awadi-80201019/
Collaboration between Global Climate Finance Centre and $30bn fund
expected to accelerate flow of financing to developing countries

Alterra, a private investment vehicle launched during Cop28, aims to raise $250 billion globally in
the next six years to create a fairer climate finance system.
In collaboration with BlackRock, Brookfield and TPG as inaugural launch partners, Alterra has
already committed $6.5 billion to climate-dedicated funds for worldwide investment, including in the
Global South, a Cop28 statement said in December.
The GCFC seeks to create an ecosystem that enables investment in low-carbon, sustainable and
resilient projects.
“The partnership … is a significant step forward in accelerating the flow of climate finance to
developing economies, where it’s urgently needed,” said Mercedes Vela Monserrate, chief
executive of the GCFC.
“By combining our expertise and resources, we can unlock new investment opportunities, drive
positive climate impact and contribute to a more sustainable future for all.”
Renewable energy players and governments have underscored the importance of private capital in
climate finance.
By 2030, emerging markets and developing economies will require $2.4 trillion every year to address
climate change, according to the Climate Policy Initiative.
Meanwhile, Deloitte has said investment of $5 trillion to $7 trillion a year is needed until 2050 in the
energy sector to drive the transition but less than $2 trillion is currently spent each year.
At Cop28, countries pledged to triple renewable energy capacity and double energy efficiency by
2030.
Fifty oil and gas companies, representing more than 40 per cent of global oil production, signed the
Oil and Gas Decarbonisation Charter, which calls for net-zero emissions by 2050 or before.

Azerbaijan: bp begins oil production from major new platform
Source BP
bp, as operator of the Azeri-Chirag-Gunashli (ACG) project, has announced the start-up of oil
production from the new Azeri Central East (ACE) platform as part of the ACG field development in
the Azerbaijan sector of the Caspian Sea.
bp’s strategy is to invest in the energy system of today – such as in the development of ACE – as
well as the energy system of the future.
The ACE platform is the seventh oil producing platform installed on the giant ACG field in the
Caspian Sea. ACG first began production in 1997 and has since produced over 4.3 billion barrels
of oil. The bp-operated Shah Deniz gas field has two further platforms in the Caspian.
The ACE platform and related facilities are designed to process up to 100,000 barrels of oil per day
(bpd) and the project is expected to produce up to 300 million barrels over its lifetime. Oil will pass
through the processing facilities on the platform and then be exported around 130 kilometres to the
onshore Sangachal terminal via a new in-field pipeline linked to an existing 30-inch subsea export
line.
Initial production from ACE comes from the first well that was initiated from the platform at the end
of last year. ACE production is expected to increase through 2024 to around 24,000bpd as two more
planned wells are drilled, completed and brought online.
Ewan Drummond, bp’s senior vice president, projects, said: 'I’m incredibly proud of the team at bp
for safely delivering the first bp-operated offshore platform fully controlled from onshore. This
 Azeri Central East (ACE) platform is technologically and digitally
the most advanced bp-operated offshore platform, the first
controlled from onshore.
 ACE is the seventh offshore platform installed on the giant ACG
field in the Caspian Sea.

establishes a new benchmark for innovative engineering and competitive project delivery for our
company and the wider industry.'
The ACE platform is technologically and digitally the most advanced bp-operated platform in the
world. Its innovative engineering allows automation of labour-intensive processes, enabling safer
and more efficient operations. The platform has a state-of-the-art fully automated drilling rig. The
use of modern technology and new processes also helps lower operational emissions.
Gary Jones, bp’s regional president for Azerbaijan, Georgia and Turkiye, said: 'This successful start-
up is testament to the ongoing close collaboration between bp, SOCAR and the Government of
Azerbaijan, together with the support of our partners. First oil from ACE – in the year of the thirtieth
anniversary of the agreement to develop ACG – marks the beginning of this world-class field’s next
development phase.'
'This is the ninth world-class production platform that we have built, installed, and are operating
offshore Azerbaijan. ACE really stands out with its engineering creativity, advanced digital
technology, and automation. We are proud to have delivered what we believe is the ‘platform of the
future’.'
The safe start-up of ACE delivers on the first major investment decision made by the ACG
partnership since the signing of the extended ACG production sharing agreement in 2017.
ACG participating interests are: bp (30.37%), SOCAR (25.0%), MOL (9.57%), INPEX (9.31%),
Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGCVidesh (2.31%).

Background
 The $6 billion ACE project is the next stage of development of the giant ACG field in the Caspian
Sea. Its development was sanctioned in April 2019. It is the seventh platform in the ACG development
and the first new production since the West Chirag platform started up in 2014.
 ACE is a 48-slot production, drilling and quarters platform located midway between the existing
Central Azeri and East Azeri platforms in a water depth of 137 metres. The project also includes new
infield pipelines to transfer oil and gas from the ACE platform to the existing ACG Phase 2 oil and
gas export pipelines for transportation to the onshore Sangachal terminal.
 The ACE platform jacket weighs 16,000 tonnes and stands 153 metres high. It contains three
production risers - one water injection, one oil export and one gas export. It was built at the Heydar
Aliyev Baku Deepwater Jackets Factory and sailed away to its permanent location in early 2023.
 The 19,600-tonne ACE topsides unit was constructed at the Bayil fabrication yard near Baku. It sailed
away for offshore installation in August 2023.
 At peak, over 8,500 people were involved in the ACE project construction works in Azerbaijan.
 A water injection pipeline between the East Azeri and ACE platforms supplies injection water from
the Central Azeri compression and water injection platform to the ACE facilities. In addition, ACE’s
design allows gas and water injection into the reservoir to support other platforms.
 The first production well was spudded from the ACE platform in December 2023 and was drilled to
total depth of 3,150 metres.
 To date the ACG field has produced over 4.3 billion barrels of oil. With future continual major
investments in new technologies and facilities, and other efforts to maximise field recovery, it is
expected to continue to produce as a world-class reservoir for many decades.

Russia Builds New Asia Trade Routes to Weaken Sanctions Over War
Bloomberg + NewBase
Russia is pressing ahead with construction of two new transport corridors linking Asia and Europe,
seeking to weaken sanctions over its war in Ukraine at the same time as Middle East turmoil is
disrupting global trade.
The shipping and rail networks via Iran and an Arctic sea passage could strengthen Moscow’s pivot
toward Asian powerhouses China and India and away from Europe. They have potential to embed
Russia at the heart of much of international trade even as the US and its allies are trying to isolate
President Vladimir Putin over the war.
The routes could cut 30%-50% off
transit times compared to the Suez
Canal and avoid security problems
plaguing the Red Sea as Houthi rebels
attack international shipping over
Israel’s war against Hamas in Gaza.
Iran’s missile and drone strikes aimed
at Israel have added to the regional
turbulence.
While the US and its Western allies are
shunning the Russia-backed routes
despite potential cost savings, major
Asian and Gulf economies have shown
interest.
Still, significant hurdles remain.
Outdated Iranian infrastructure is
holding up development of the
International North South
Transportation Corridor connecting
India to the European part of Russia.
And even as accelerating climate
change melts Arctic ice to make the
Northern Sea Route, or NSR, a more
viable option, formidable logistical
challenges remain along Russia’s remote coastline.
Russia is preparing to invest more than $25 billion to upgrade the route via Iran and improve facilities
along the Russian Arctic shoreline, including a fleet of domestically manufactured ice-breakers. It
also plans to patrol the NSR route with a network of drone bases, Izvestia newspaper reported,
citing an unidentified Defense Ministry official.
Russia issued a 1.3 billion euro ($1.4 billion) loan to Iran last May to build a vital missing rail link
that will stretch 162 kilometers (101 miles) to connect the city of Rasht along the Caspian Sea coast
to Astara on the border with Azerbaijan. Once completed, the railway will allow cargo supplies from
St. Petersburg to Bandar Abbas, Iran’s main export port on the Persian Gulf.
“Its construction will allow us to create direct and uninterrupted railway transportation along the
entire length of the North-South route,” Putin said during a videoconference with Iranian counterpart
Ebrahim Raisi. “This will help considerably diversify global transport flows.”

U.S. natural gas trade will continue to grow with the startup of
new LNG export projects
source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO)
In our recently released Short-Term Energy Outlook (STEO), we forecast that U.S. liquefied natural
gas (LNG) exports will continue to lead growth in U.S. natural gas trade as three LNG export projects
currently under construction start operations and ramp up to full production by the end of 2025.
We also forecast increased natural gas exports by pipeline, mainly to Mexico. In our STEO forecast,
net exports of U.S. natural gas (exports minus imports) grow 6% to 13.6 billion cubic feet per day
(Bcf/d) in 2024 compared with 2023. In 2025, net exports increase another 20% to 16.4 Bcf/d.
We forecast that U.S. LNG exports increase 2% in 2024 to average 12.2 Bcf/d. In 2025, we forecast
that LNG exports grow by an additional 18% (2.1 Bcf/d). We forecast U.S. natural gas exports by
pipeline to grow by 3% (0.3 Bcf/d) in 2024 and by 4% in 2025. We expect pipeline imports to decline
by 0.4 Bcf/d in 2024 and then increase slightly (0.1 Bcf/d) in 2025.
In 2024–25, we forecast that existing U.S. LNG export facilities will run at similar utilization rates as
in 2023. Annual maintenance typically occurs in the spring and fall, when global LNG demand is
lower and temperatures are mild.
In April and May 2024, we expect LNG exports to decline while two of the three trains at the Freeport
LNG export facility undergo annual maintenance. Later in 2024, we expect that Plaquemines LNG
Phase I and Corpus Christi Stage 3 will begin LNG production and load first cargoes by the end of
the year. In 2025, the developers of Golden Pass LNG plan to place in service the first two trains of
this new three-train LNG export facility.

We forecast an increase in U.S. natural gas pipeline exports to Mexico as several pipelines in
Mexico—Tula-Villa de Reyes, Tuxpan-Tula, and Cuxtal Phase II connecting to the Energía Mayakan
pipeline on the Yucatán Peninsula—become fully operational in 2024–25. These pipelines started
partial service in 2022–23 but have not been operating at full capacity. Also, flows via the Sur de
Texas-Tuxpan underwater pipeline are likely to increase slightly in 2024 when it begins delivering
natural gas from the United States to Mexico’s first LNG export project, Fast LNG Altamira.
U.S. natural gas pipeline imports from Canada remained relatively unchanged over the last two
years (2022–23), averaging 8.1 Bcf/d. We expect pipeline imports from Canada to remain a key
supply source, particularly for the U.S. Midwest region during winter months.
U.S. LNG imports, which primarily serve New England and generally peak in winter
months, declined slightly in 2023, mainly because of record-warm winter weather. We expect LNG
imports to average about 0.1 Bcf/d in 2024–25 and continue to serve as a marginal supply source
during periods of high demand, particularly in the winter months

NewBase April 19 -2024 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil slips despite reported Middle East Tension escalation
Reuters + NewBase
Oil slipped on Friday after prices spiked earlier on reports that Israel had attacked Iran as market
fears of a major escalation to hostilities in the Mideast appeared to ease.
After the benchmark contracts jumped more than $3 in the session, Brent futures were down 46
cents, or 0.5%, at $86.65 a barrel by 1015 GMT. The most active U.S. West Texas Intermediate
contract was down 34 cents, or 0.4%, to $82.39.
Israel launched an attack on Iranian soil on Friday, sources told Reuters. Iranian media reported
explosions, but an Iranian official told Reuters those were caused by air defence systems. State
media said three drones over the central city of Isfahan had been shot down.
Tehran played down the incident and indicated it had no plans for retaliation - a response that
appeared gauged towards averting region-wide war.
Oil price special
coverage

"Whilst the initial spike in oil may have highlighted the initial fear of further escalation, we have seen
both equities and crude reverse some of those preliminary moves," said Joshua Mahony, chief
market analyst at Scope Markets.
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S.,
November 22, 2019. REUTERS/Angus Mordant/File Photo Purchase Licensing Rights, opens new
tab
"Events of the past week appear to be more about showing their willingness to act rather than
actually seeking to incite a war ...For markets this is a best case scenario".
Last weekend Iran launched hundreds of drones and missiles in a retaliatory strike after a suspected
Israeli attack on its embassy compound in Syria.
Most of the drones and missiles were downed before reaching Israeli territory, with minimal damage
and casualties.
Investors have been closely monitoring Israel's reaction to the April 13 Iranian drone attacks. The
geopolitical risk premium in oil prices had been unwinding this week on the perception that any
Israeli retaliation to Iran's attack would be moderated by international pressure.
The U.S. also announced sanctions on Iran, an OPEC member, targeting its unmanned aerial
vehicle production after the country's attack on Israel. The sanctions on Iran, however, exclude its
oil industry
 Hawk Energy Sees Oil at $85-$100 This Year With Strong Demand Growth
 That’s a ‘ foreseeable & sensible range,’ Hawk Energy CEO M. Al Shihabi says
 Demand set to grow to 104 MBD up by 2.0 MBD, in 2024: Al Awadhi says

NewBase Specual Coverage
The Energy world –April 19 -2024
CLEAN ENERGY
Kazakhstan’s Compensation Claims Against Kashagan
Oil Firms Jump to $150 billion
Government adds demand for compensation for lost revenue
Kashagan oil project has seen many delays and cost overruns
Bloomberg - Nariman Gizitdinov
Kazakhstan has increased its arbitration claims against international oil companies that developed
the Kashagan oil field to more than $150 billion, demanding compensation for lost revenue in
addition to a dispute over costs, according to people familiar with the matter.
Kazakhstan’s government was already involved in a $15 billion arbitration over production costs at
the giant field, which has been beset by delays, technical difficulties and cost overruns since
development began more than 20 years ago.
The additional claim is for as much as $138 billion in lost revenue, reflecting the calculation of the
value of oil production that was promised to the government but not delivered by the field
developers, the people said, asking not to be identified because the information isn’t public.
There is a further compensation claim related to contracts in the Kashagan development that were
allegedly tainted by corruption, the people said.
The row underscores the difficulty of operating in Central Asia’s largest oil-producing nation, where
major international companies face challenging environmental and geological conditions, plus a
government that takes a robust approach to maximizing value from its production-sharing
agreements.

Still, in earlier disputes with oil majors the government of Kazakhstan has demonstrated a certain
degree of flexibility, on occasion settling for less than was initially claimed. Last year, the nation
signaled it could consider resolving its disputes with the Kashagan partners through direct talks.
Companies including Eni SpA, Shell Plc, Exxon Mobil Corp. and TotalEnergies SE invested about
$55 billion to develop Kashagan, which currently produces just under 400,000 barrels a day of oil.
While the field was one of the biggest discoveries in decades, it also brought numerous technical
challenges, from a sea that was frozen for almost half the year to a reservoir that contained high
concentrations of poisonous gas.
Kashagan pumped its first oil in September 2013 — eight years later than targeted and $45 billion
over its initial budget — only to shut down a month later after leaks were detected in a pipeline.
Production resumed in 2016 and the field gradually reached output of much as 270,000 barrels a
day in 2017. Eni, the lead developer in the project’s early stages, had estimated that Kashagan
would reach a plateau in production of at least 1.5 million barrels of oil a day.

The North Caspian Operating Co., the joint venture that runs the project, said in a statement that it
has as number of disputes concerning the application of certain provisions of the Kashagan
production sharing agreement that are subject to arbitration.
“The contracting companies consider that they have acted in accordance with” that contract,
according to the statement. NCOC declined to comment further due to the confidential nature of the
proceedings.
Kazakhstan’s Energy Ministry declined to disclose any details of the disputes, saying that “this is a
purely commercial dispute which the parties intend to resolve through arbitration procedures.”
“Eni confirms that an arbitration procedure has been commenced by the Kazakh authorities,” the
company said in a statement. The Italian oil firm declined to comment on specific terms of the
process, but said in general that it does not believe, “the basis for the claims or the specific amounts
of compensation requested to be reasonably substantiated or credible.”
Shell declined to comment. Exxon referred questions to NCOC. TotalEnergies didn’t immediately
respond to requests for comment.
Compensation Claims
Prior to the latest increase in claims, Kazakhstan was already alleging that the Kashagan partners
should not have deducted $13 billion of costs from the revenue received by the government. That
amount has now increased to $15 billion, the people said.
The companies are also facing a separate $5.1 billion fine for allegedly breaking environmental
rules, after Kazakhstan’s court of appeal upheld government claims over sulfur storage.

The operator of the field has denied being at fault in the cases related to the environmental and cost
claims.
Kazakhstan has been successful before in challenging the international majors for alleged failures
at the country’s two largest oil developments. In 2020, Shell, Eni and their partners in the
Karachaganak oil and gas venture paid $1.3 billion to settle a long-running dispute with the state
over revenue sharing. In 2008, the Kashagan partners agreed to pay $5 billion to Kazakhstan and
sell a larger stake in the venture to state-run KazMunayGas to settle a dispute over delays and cost
overruns.

NewBase Energy News 19- April - Issue No. 1717 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf

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