ExxonMobil in Qatar: Citizenship Report
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ExxonMobil in Qatar:
Citizenship Report
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exxonmobil.com.qa
Table of Contents
1 Letter from the President and General Manager,
ExxonMobil Qatar Inc.
2 About ExxonMobil
6 The Outlook for Energy: A View to 2040
10 Governance
12 Safety, Health, and the Workplace
18 Environmental Performance
23 Managing Climate Change Risks
26 Industry Development
32 Community Engagement and Investment
40 Qatar – Present and Future
About This Report Additional information on ExxonMobil’s global
corporate citizenship performance is included in
ExxonMobil presents this Citizenship Report our annual Corporate Citizenship Report, which
as part of the State of Qatar’s Sustainable can be read at exxonmobil.com/citizenship.
Development Industry (SDI) Reporting Initiative
under the auspices of The Ministry of Energy ExxonMobil’s corporate citizenship reporting is
and Industry and the Qatar Petroleum HSE guided by the International Petroleum Industry
Regulations and Enforcement Directorate. Environmental Conservation Association/American
While ExxonMobil does not operate in Qatar, Petroleum Institute (IPIECA/API) Oil and Gas
we are participating in the SDI Reporting Initiative Industry Guidance on Voluntary Sustainability
through the submission of case studies relevant Reporting (2010) and cross-references the Global
to our activities in Qatar as well as information Reporting Initiative (GRI) G3.1 Sustainability
on ExxonMobil processes and procedures Reporting Guidelines.
that are applicable to our global activities.
Letter from the President and General Manager,
ExxonMobil Qatar Inc.
Through the vision of His Highness the Emir Sheikh
Hamad bin Khalifa Al Thani, Qatar aims to be an
advanced society capable of sustainable development
and providing a high standard of living for its people.
The National Vision defines the long-term With energy demand expected to
outcomes for the country and provides surge by around 30 percent and
a framework in which national strategies natural gas use by around 60 percent
and implementation plans can be by 2040, as outlined in our Energy
developed. As part of ExxonMobil’s Outlook, ExxonMobil is proud to support
commitment to Qatar, we are proud Qatar’s contribution to meeting these
to contribute to the National Vision global energy demands.
through the energy of our people,
our advanced technology and our This Citizenship Report explains how That respect is born of ExxonMobil’s
expertise in operational excellence. ExxonMobil is contributing to the State unyielding commitment to the
of Qatar’s growing energy industry in a fundamentals of safety, reliability, and
Our presence in Qatar dates back several safe and environmentally responsible operational excellence. Our annual
decades to when Mobil Oil, a predecessor manner with equal emphasis on Corporate Citizenship Report provides
of ExxonMobil, established an affiliation supporting the country’s way of life. further details on the means by which we
with the State of Qatar. We proudly The other elements of Qatar’s vision – meet this commitment each and every
maintain this long-term commitment, human, social, and environmental day, both here in Qatar and globally.
focused on the four pillars of development development – are addressed at every
put forth in the National Vision: economic, level of our activities, whether through The economic and social progress
environmental, human, and social. workforce development, community supported by His Highness the Emir and
initiatives, research programs, or espoused through the National Vision
ExxonMobil’s partnership with Qatar environmental management projects. are strongly supported by ExxonMobil.
Petroleum has yielded remarkable results. We look forward to continued
Our joint ventures, Qatargas and RasGas, ExxonMobil hosts educational and training contributions to Qatar as it supplies the
handle the operations of our business in programs such as seminars on the world with the secure, reliable, and
Qatar. Together, through the development fundamentals of carbonate stimulation, affordable energy that will be needed by
of new technologies and the well- contract planning courses specific to an increasing population seeking a better
considered use of Qatar’s natural major capital projects, and in-depth quality of life.
resources, we have developed an technical training courses that cover all
unrivaled liquefied natural gas (LNG) aspects of the LNG business. We also
supply chain and opened up new natural sponsor sporting events such as His
gas markets around the world. Highness the Heir Apparent Cup and the
Qatar ExxonMobil Open. These activities
demonstrate our respect and commitment Bart Cahir
to the State of Qatar and its people. President and General Manager
ExxonMobil Qatar Inc.
1
About ExxonMobil
Using innovation and technology, ExxonMobil delivers
energy and petrochemical products to meet the world’s
growing demand.
Our employees, operations integrity, In Qatar, ExxonMobil has partnered with With the belief that advancements
technical expertise, financial strength, Qatar Petroleum to develop the North in technology will play a critical role
and global reach provide a competitive Field, the world’s largest non-associated in meeting the energy demands and
advantage across the companies that natural gas field, through our RasGas challenges of the future, ExxonMobil
make up our Upstream, Downstream, and Qatargas joint ventures. Through Research Qatar was established as an
and Chemical business lines. Within these ventures, we have participated organization to conduct research in areas
these businesses, we operate facilities in 12 of the 14 LNG trains, 27 of the of common interest to the State of Qatar
or market products in nearly all of the world’s largest LNG ships, three and ExxonMobil. Currently, scientists and
world’s countries and explore for oil and receiving terminals in Europe and the researchers are progressing a number
gas on six continents. Our extensive United States, and Qatar’s largest of projects in the areas of environmental
research and development programs condensate refinery. Additionally, management, water reuse, LNG safety
support our operations, enable ExxonMobil is the only foreign participant and coastal geology.
continuous improvement in each of in two domestic gas projects – Al Khaleej
our business lines, and explore new Gas and Barzan Gas. ExxonMobil also
and emerging energy sources and provides technical and management
technologies. expertise to directly support Qatar
Petroleum and Qatar Gas Transport
Company Ltd. (Nakilat) through
secondments of ExxonMobil employees.
2 ExxonMobil in Qatar • Citizenship Report
Global Integrated Operations
Upstream Downstream Chemical
Our upstream asset base is geographically As the largest global refiner, ExxonMobil has ExxonMobil is a leader in the chemical
diverse with exploration and production interests in 36 refineries in 21 countries sup- industry with interests in 51 wholly
acreage in 36 countries, production sites plying fuels, lubricants, and other high-value owned and joint-venture manufacturing
in 23 countries, and sales of natural gas in products and feedstocks to our customers. locations worldwide.
32 countries.
Crude Oil & Natural Gas
Feedstocks
Research &
Development
Production
Refining & Supply Products
Upstream Exploration Development Research & Lubricants & Fuels
Research Engineering Specialties Marketing
Natural Gas Customers Products Customers Products Customers
4.5 6.4 25
million oil-equivalent million barrels million metric tons
barrels of net oil and per day of petroleum of chemical prime
gas production per day product sales product sales
UPSTREAM
DOWNSTREAM
CHEMICAL
3
ExxonMobil Qatar Business Activities
Upstream
Joint Venture LNG Train Lean / Rich ExxonMobil1 Equity (%) Supply Rights Start-up
Ras Laffan I 1, 2 R 25% – 100% 6.6 mta June 1999
3 R 30% 4.8 mta February 2004
Ras Laffan II 4 L 34% 4.8 mta September 2005
5 L 28.5% – 30% 4.8 mta March 2007
6 L 30% 8.0 mta July 2009
Ras Laffan 3
7 L 30% 8.0 mta April 2010
DPSA Upstream
2
Qatargas 1 1, 2, 3 R 9.9 mta December 1996
10% in Downstream JV
4 L 30% 8.2 mta March 2009
Qatargas 2
5 L 18.3% 8.2 mta September 2009
DPSA
1 750 mcfd November 2005
100% Contractor Share
Al Kaleej Gas
DPSA
2 1250 mcfd December 2009
80% Contractor Share
Barzan Gas 1, 2 7% 1400 mcfd Estimated 2014
Downstream
Project Production Capacity ExxonMobil Equity
Laffan Refinery Diesel, Naptha, Kerojet, Gasoil 146,000 bpd feedstock 10%
700 mcfpa, Helium 1 Indirect interest through RasGas and
Ras Laffan Helium Helium
1330 mcfpa, Helium 2 Qatargas ventures
Ships (long-term charters)
Ship Type # of Ships Size Venture
Terminals
Conventional 25 138–151 km3 11 Qatargas 1, 14 Ras Laffan II Project Capacity ExxonMobil Equity
South Hook, UK 15.6 mta 24.15%
Q Flex 20 210–217 km3 8 Qatargas 2, 12 Ras Laffan 3
Adriatic, Italy 5.9 mta 71%
Q Max 7 263–266 km3 6 Qatargas 2, 1 Ras Laffan 3
Golden Pass, USA 15.6 mta 17.6%
Total 52
Footnotes Units
1
In this document for convenience and simplicity, “ExxonMobil” is used as an mta Million tonnes per annum
abbreviated reference to affiliates of Exxon Mobil Corporation. mcfd Million cubic feet per day
2
Development and Production Sharing Agreement. bpd Barrels per day
mcfpa Million cubic feet per annum
4 ExxonMobil in Qatar • Citizenship Report
ExxonMobil Processes and Management Systems
Across ExxonMobil’s global operations, we use consistent management standards
to help ensure operations integrity and support our decision-making. These systems
– a selection of which is highlighted below – set high expectations for operating
excellence at our sites.
Operations Integrity Best Practices in External Affairs Production Operations Energy
Management System (OIMS) Strategic planning and management Management System (POEMS)
Establishes common expectations for tool for practicing excellence in Incorporates a systematic approach to
addressing safety, security, health, community relationships at every level. energy management to improve energy
environmental, and social risks. OIMS efficiency in the Upstream business.
provides a systematic, structured, and National Content Development Guidelines
disciplined approach to measure progress Provide the key elements of a national Product Stewardship
and track accountability across business content strategy and plan, including Information Management System
lines, facilities, and projects. models and tools for the successful Applies common global processes to
development of national content. capture and communicate information
Standards of Business Conduct on the safe handling, transport, use,
Define the global ethical conduct of Environmental Management Standards and disposal of our products.
the Corporation and its majority-owned Establish a consistent approach to
subsidiaries. These Standards uphold environmental management for the Technology Management Systems
values related to human rights, labor, business lines and projects. Processes for technology investment
the environment, and anti-corruption. that follow a gated management
Environmental Business Plans system from early technical innovation
Controls Integrity Management System Corporate-wide framework for to final deployment.
Provides a structured approach to addressing environmental requirements
assessing and measuring financial control and expectations as part of the annual
risks, developing procedures for mitigating business cycle.
concerns, monitoring compliance with
standards, and reporting results. Global Energy
Management System (GEMS)
ExxonMobil Capital Projects A management system that systematically
Management System (EMCAPS) identifies and addresses operational
Framework to guide capital project energy efficiency opportunities for the
development and execution. Downstream and Chemical business lines.
5
The Outlook for Energy: A View to 2040
Each year, ExxonMobil takes a comprehensive look at long-term trends in energy
demand, supply, emissions, and technology to guide our own investment decisions.
In 2012, we extended our Outlook to the year 2040. The Outlook projects that global
energy demand in 2040 will be about 30 percent higher than in 2010, even with
significant gains in energy efficiency. It is clear that expanding prosperity across a world
with a growing population requires access to reliable and affordable energy supplies.
Population and Economic through 2040, as North America, Europe,
Growth Drive Demand and other regions gradually strengthen
Population growth is one reason why their economies. Non-OECD economies
ExxonMobil sees global energy demand will grow much faster: almost 4.5 percent
rising by about 30 percent from 2010 per year. Significant energy efficiency
to 2040. By 2040, there will be nearly gains across economies throughout
9 billion people on the planet, up from the world will keep the pace of demand
about 7 billion today. growth substantially lower than that of
economic growth. OECD energy demand
The world’s economies will continue will flatten through 2040, while non-OECD
to grow with varying rates. ExxonMobil demand will rise by 60 percent and
estimates OECD1 economies will expand represent the vast majority of the increase
about 2 percent per year on average in global energy use.
1
Refer to the Organization for Economic Cooperation and Development (OECD) website for a listing of its members, oecd.org.
6 ExxonMobil in Qatar • Citizenship Report
Evolving Supply of Energy Global demand for less carbon-intensive
Sources to Meet Demand fuels – natural gas, nuclear, and
Demand for all forms of energy is projected renewables – will rise at a faster-than-
to rise at an average annual rate of 0.9 average rate. For example, nuclear power
percent from 2010 to 2040. Oil and other will grow about 2.2 percent per year –
liquid fuels will remain the world’s largest a substantial increase, but lower than
energy source in 2040, meeting about projections made before the 2011
one-third of the demand. Substantial supply tsunami damage to the Fukushima
increases will come from sources such as nuclear plant in Japan.
global deepwater and oil sands production.
Wind, solar, and biofuels also will see strong
The fastest-growing major energy source growth. By 2040, they will account for
will be natural gas, with global demand about 4 percent of global demand. Wind
rising by about 60 percent from 2010 is the fastest-growing energy source as
to 2040. By 2025, natural gas – which projected in the Outlook, rising at about 8
emits up to 60 percent less carbon dioxide percent per year on average through 2040.
(CO2) than coal when used for electricity
generation – will have overtaken coal as the
second most utilized fuel source after oil.
7
Meeting Global Transportation compared to 95 percent today. This high
Needs through Liquid Fuels percentage is driven by the fact that liquid
One of the most profound shifts in energy fuels contain more energy per volume
use through 2040 will come from the compared to other sources of energy
transportation sector. The proliferation used in vehicles.
of more efficient vehicles will result in
flattening energy demand for personal Global Demand for Electricity Surges
transportation, even as the number of Utilities and other electricity producers
personal vehicles in the world doubles transform different types of primary
to 1.6 billion, mostly from growth in energy – everything from natural gas
China and other non-OECD countries. to coal to wind – into electricity used in
homes and businesses. Global demand
In spite of this shift, economic growth will for electricity will rise by 80 percent from
increase demand for trucks and heavy- 2010 to 2040. As a result of greater
duty vehicles. As a result, starting in 2030, efficiencies in power plants, demand
these vehicles will use more fuel than all for fuels to make that electricity will rise
personal vehicles combined. by only about 45 percent, mostly in
China and other non-OECD countries.
Overall, global energy demand for Natural gas, nuclear, and renewables
transportation will rise by nearly 45 will see strong growth through 2040
percent from 2010 to 2040. In 2040, as generators shift to lower carbon
90 percent of global transportation will fuel sources globally.
run on liquid petroleum based fuels,
8 ExxonMobil in Qatar • Citizenship ReportEfficiency Gains Slow the Growth Providing Solutions to Advance “If we meet our roles and
of Energy-related CO2 Emissions Human Progress responsibilities together, government
ExxonMobil expects global energy-related During the past 100 years, we have and the energy industry – along
emissions to level off by 2030, even as seen a dramatic change in the amount with citizens and consumers at
overall energy use continues to increase. and nature of global energy use. large – can lay the foundation for
This trend is the result of significant Advances in technology have played sustained economic growth by
improvements in energy efficiency, plus a huge role in shaping the demand for providing reliable, affordable
shifts toward natural gas and other less energy, and the types of supplies used energy in a safe, secure and
carbon-intensive fuels, as efforts continue to meet that demand. To help people environmentally responsible way.”
to manage the risks posed by rising prosper in the decades ahead, the world
greenhouse gas emissions. By 2040, will need to expand supplies of reliable, Rex W. Tillerson,
OECD emissions of CO2 will be 20 percent affordable energy, while ensuring these Chairman and CEO,
lower than in 2010, while non-OECD supplies are provided in a safe, secure, Exxon Mobil Corporation
countries will account for more than and environmentally responsible manner.
70 percent of global CO2 emissions, The scale of this challenge is enormous, Keynote Address
compared to 60 percent in 2010. and we remain dedicated to finding at 20th World Petroleum Congress,
practical, broad-based solutions. Doha, Qatar, December 6, 2011
Explore enhanced web content at
exxonmobil.com/citizenship
9Governance
Sound corporate governance requires clear expectations of high ethical
standards and integrity in all business activities and investment decisions.
ExxonMobil’s ethics and high standards of business conduct allow us to
operate in an economic climate where large-scale investments support our
long-term business and contribute to the communities where we operate.
Ethics Standards of Business Conduct Bribery and Corruption
High standards of business conduct are Our Standards of Business Conduct Anti-corruption practices are an essential
a key competitive strength – critical to define the global ethical conduct of the component of our compliance program,
maintaining our global license to operate. Corporation and its majority-owned given that we operate globally and in
Our presence in nearly every country of subsidiaries. These Standards uphold many challenging environments.
the world requires training on international the values of human rights, labor, The Anti-Corruption Legal Compliance
trade laws, including the U.S. anti- the environment, and anti-corruption. Summary outlines ExxonMobil’s
corruption and antitrust laws, as well as The Board of Directors has adopted commitment to comply with the U.S.
those in other countries where we do and oversees the administration of the Foreign Corrupt Practices Act (FCPA),
business. All employees are expected to Standards. No one has authority to make the United Kingdom Bribery Act, and
uphold the highest ethical standards of exceptions or grant waivers to the global anti-corruption standards in all
business integrity. They must comply with Standards. Disciplinary action is taken business relationships. ExxonMobil
all applicable laws and accurately record against any employee who violates these employees and contractors are prohibited
and track all business transactions. Standards. Employees are expected from making payments to, or engaging
Employees are subject to disciplinary to review the Standards each year. in transactions with, government officials
action, including termination, for violations While ExxonMobil is not a formal signatory to improperly influence the performance
of our policies. Employees receive training of the United Nations Global Compact, of their official duties. Maintaining internal
on our ethics policy every four years its values represent key elements controls and keeping accurate and
through Business Practices Reviews, of our Standards. complete transaction records are
including a detailed review of our required. Our standard language for
Standards of Business Conduct; Internal Audits procurement contracts includes a
implementation guidelines and Regular internal audits and self- requirement to comply with all laws
procedures; and a review of antitrust, assessments help ensure the rigorous and keep accurate books and records,
competition, and anti-corruption laws. implementation of our control systems and where appropriate, contains specific
These general training sessions, and Standards. ExxonMobil’s internal anti-bribery commitments.
in addition to more comprehensive audit team of more than 200 well-trained
training given to relevant functions auditors annually audit about one-third of
on a more frequent basis, are a condition ExxonMobil’s operations, conducting
of employment at ExxonMobil. detailed assessments of facilities,
business units, personnel, and records,
and thoroughly investigating
noncompliance with the Standards. These
audits are conducted across all functions
of the Corporation.
10 ExxonMobil in Qatar • Citizenship ReportSystems and Practices Global Management Standards Control Systems
for Reporting Violations and Approaches ExxonMobil’s System of Management
We reinforce our commitment to ethics Our internal management systems help Control Basic Standards defines essential
and high standards of business conduct identify, track, and report the metrics principles and concepts that drive our
with the expectation for all employees that demonstrate and guide our business controls. Our Controls Integrity
to report suspected violations of laws performance. These systems enable Management System is designed to
and company policies. The Corporation us to comply with new regulations; assess and measure financial control
provides several confidential mechanisms where laws and regulations do not risks, including procedures for mitigating
for reporting, including a 24-hour phone exist, they provide a framework for concerns, monitoring compliance with
number and mailing address. Employees maintaining our high standards. standards, and reporting results to the
can also report violations as a part of appropriate operations and management
supervisory reviews. Confidentiality is Operations Integrity Management groups within ExxonMobil. These
respected throughout the investigation System company-wide financial controls meet or
process, subject to legal requirements; The Operations Integrity Management exceed the requirements of the Sarbanes-
penalizing or threatening an employee System (OIMS) establishes common Oxley Act and NYSE listing standards.
for filing a report is prohibited. A Hotline expectations for addressing safety, PricewaterhouseCoopers LLP conducted
Steering Committee comprising security, security, health, environmental, and an independent assessment that
audit, law, and human resources social risks. OIMS provides a determined our internal controls system
personnel reviews all reports of suspected systematic, structured, and disciplined is effective for financial reporting. Regular
violations. The Committee provides a approach to measure progress and self-assessments and audits help ensure
quarterly report to the Audit Committee, track accountability across business that every operating unit consistently
including any violations or major issues. lines, facilities, and projects. implements our controls and standards.
Violations lead to disciplinary actions, We evaluate opportunities to improve
including dismissal. the OIMS Framework every five years
and make regular upgrades and
adjustments. In 2011, Lloyd’s Register
Quality Assurance, Inc., reviewed our
ongoing performance and attested that
OIMS is consistent with the standard
on environmental management
systems of the International
Organization for Standardization (ISO
14001:2004) and the Occupational
Health and Safety Assessment Series
for health and safety management
systems (OHSAS 18001:2007).
11Safety, Health, and the Workplace
Qatar places the safety and health of its people at the forefront.
Similarly, ExxonMobil considers the safety and health of our employees,
contractors, and the community-at-large a foundation of our business.
We hold our commitment to excellence in safety and health as a core
value – one that shapes the decisions we make at every level.
Accordingly, we continuously assess ExxonMobil’s Human Factors Technology All of ExxonMobil’s safety, security, health,
our systems, programs, and practices to Center of Excellence works to incorporate environmental, and product safety policies
enhance safety, health, and environmental the often overlooked human factors are put into practice through a disciplined
performance. Experience has demonstrated such as worker fatigue, ergonomic risk management framework called the
that each enhancement can lead to considerations, and physical and mental Operations Integrity Management System
a period of significant improvement, demands into engineering design and (OIMS). Starting with Management
often followed by a plateau in safety construction, workplace layout, safety Leadership, Commitment, and
performance at an improved incident systems and practices, and Accountability and concluding with
rate. Recognizing this, ExxonMobil behavior-based systems. Operations Integrity Assessment and
conducted a personnel safety study Improvement, this 11-element framework
to identify new strategies to further In 2011, ExxonMobil Development provides a systematic and structured
improve our safety performance. Company conducted a series of global methodology by which to measure
Over the course of the study, contractor safety forums for approximately progress and track accountability across
the team identified two principal themes: 4,800 attendees in 33 countries. business lines, facilities, and projects.
the importance of leadership behavior Concurrently, we began to apply learnings The BP Deepwater Horizon incident in
and the role of performance metrics. from cross-industry research efforts to 2010 reaffirmed the importance of
study improved approaches for the continually developing and improving
A philosophy of Actively Caring, prevention of serious injuries and fatalities. risk management and operations integrity
implemented as a result of that study, ExxonMobil Development Company systems. We evaluate opportunities to
has helped foster an environment in which applies these learnings in the project improve the OIMS Framework every five
workers are empowered to approach management support provided to our years and make regular enhancements
each other when they see potential joint venture partners in Qatar. as we learn from incidents and
hazards or unsafe behaviors, regardless experiences globally.
of whether the worker is a supervisor,
experienced employee, or contractor.
In addition, we are emphasizing safety
leadership behaviors relevant to roles,
workplaces, and organizations in
training and coaching sessions.
The “Actively Caring and
Approaching Others” focus stems
from ExxonMobil’s desire to
eliminate all incidents and ensure
Nobody Gets Hurt.
12 ExxonMobil in Qatar • Citizenship ReportExxonMobil presents RasGas with its prestigious ExxonMobil Development Company President’s Safety Award in recognition of the RasGas Subsurface Group’s
world-class safety, health, and environmental performance in 2011.
Safety in the Workplace As always, our goal is to provide and Recognizing Safety
Excellence in safety, security, and maintain a workplace where Nobody Recognizing adherence to safety practices
health in the workplace is a core value Gets Hurt. Our Site Safety Leadership is an important component of ExxonMobil’s
for our company. We manage the risks Team, chaired by the President and comprehensive safety strategy.
associated with our operations through General Manager of ExxonMobil Qatar,
the implementation of OIMS. Every helps guide our safety program to In 2011, RasGas Company Limited
ExxonMobil employee and contractor confirm every effort is made toward was recognized with the prestigious
accepts safety as a job requirement, achieving that goal. ExxonMobil Development Company
whether working at a desk or in an (EMDC) President’s Safety Award for
operating facility. Additionally, we steward the safety its outstanding safety performance.
performance of ExxonMobil employees The EMDC President’s Safety, Health
As ExxonMobil is not an operator in who are assigned as secondees to and Environment Award recognizes efforts
Qatar, our safety program focuses Qatargas, RasGas, Qatar Petroleum, to reduce risks and prevent SHE incidents
on our employees and contractors and Qatar Gas Trading Company. through management leadership,
associated with our office work This is consistent with our view that employee participation, and the use of
environment. In 2011, we experienced safety is a core value for which we take state-of-the-art management systems.
one minor injury during the nearly responsibility, even where we don’t This award was the third for RasGas
1 million hours worked by our employees provide daily overview and supervision. and the second such recognition
and contractors. for RasGas’ Subsurface Group.
13Process Safety As part of our efforts to enhance ExxonMobil Research Qatar is also
Our focus on process safety is an active process safety, ExxonMobil Research conducting research on a remote gas
endeavor. This is reflected in our ongoing Qatar is conducting research on an detection system that pairs infrared
commitment to invest in technology that advanced, immersive, 3D training tool at camera technology with a sophisticated
enables us to develop innovative solutions our facility located at the Qatar Science computer algorithm that autonomously
to improve safety, minimize environmental & Technology Park. Through use of a 3D identifies hydrocarbon emissions. When
impact, and maximize resource value. visualization training platform and realistic deployed, the remote gas detection can
We have invested approximately $8 billion models of actual facilities such as LNG improve process safety and reduce
worldwide in research and development ships or processing plants, individuals and hydrocarbon emissions by continuously
during the past decade, and almost teams working in the oil and gas industry scanning for leaks and notifying operators
$2 billion on technologies related to will be able to train on work practices of potential problems quickly and
safety and the environment. Globally, ranging from routine maintenance to automatically. This early detection can
ExxonMobil subscribes to industry emergency response scenarios. The help avert potential safety hazards and
standards – the American Petroleum element of realism being developed in reduce emissions to the environment.
Institute’s Recommended Practice 754 this program will allow for more effective
and International Association of Oil & Gas training and will ideally enable workers Safety, reliability, operations integrity,
Producers No. 456 – which defines to perform their jobs more safely. and efficiency all hinge on effective risk
process safety events and uses a tiered management. ExxonMobil believes that
system to measure leading and lagging A unique aspect of this training tool will effective risk management is essential to
indicators of performance. enable multiple 3D platforms and control deliver results that the host governments,
panel simulators to be connected allowing our partners and society overall expects
teams to train simultaneously on the same from us and that we demand from
scenario. In this case, field operators and ourselves.
control room operators can interact in
real time simulations similar to how they
would interact in a field environment.
Infrared camera technology enhanced
with a sophisticated software algorithm
selectively identifies hydrocarbons, allowing
for earlier identification of gas emissions.
14 ExxonMobil in Qatar • Citizenship ReportRich Kruger, President of ExxonMobil
Production Company, at the SPE
International Production and Operations
Conference in Doha.
ExxonMobil Speaks on Operational Integrity
Rich Kruger, President of ExxonMobil At ExxonMobil, this concept of managing What I’ve learned throughout my career is
Production Company, spoke at the SPE risks while maximizing value involves that integrity – be it technical, operational
International Production and Operations ‘focusing on the fundamentals’ – the or personal – must serve as the core of
Conference in Doha on the energy fundamentals of safety, reliability, how we go about our business.
challenge that lies ahead. But not from operational integrity, and efficiency.
the standpoint of “what” is needed to As it relates to oil and gas production
tackle the challenge, but rather from the Safety, reliability, operations integrity, operations, I believe the way we underpin
standpoint of “how,” as an industry, we and efficiency all hinge on effective risk integrity is through having the right
must deliver results – the type of results management. We believe that effective risk equipment, the right processes, and the
that are required to meet growing global management is essential to deliver results right people in place. At ExxonMobil,
energy demand. that the host governments, our partners, we call this operational integrity.”
and society overall expects from us.
“Producing oil and gas in a safe, reliable,
and environmentally responsible way, When we manage risks properly, we
each and every day, takes unwavering reduce the potential for higher severity
commitment, focus, and a tremendous incidents. When our operations integrity
effort by all involved. Producers must systems are working well, we mitigate
understand and manage operating risks unscheduled downtime. When we
while striving to maximize the value of understand technical and operational risks,
the resources. we better leverage technology to support
our efforts. And, when we apply sound risk
management, we confidently pursue the
efficiencies that truly maximize value.
15Participants of the ExxonMobil Health Fair receive free health checks and information on healthy lifestyle habits.
Promoting Health ExxonMobil is further promoting the Workplace Security
Building on the efforts of Qatar’s leaders to importance of healthy lifestyles in Qatar Protecting worker and community
promote healthy and active lifestyles through its support of the “Your Health safety also means ensuring security and
among its people, ExxonMobil organizes First” initiative. This nationwide program protection of information. Our security
annual health fairs for its employees from the Supreme Council of Health in programs are designed to meet the
and their families in Qatar. Through a Qatar and Weill Cornell Medical College challenges of the diverse locations
partnership with Hamad Medical in Qatar aims to increase the public’s where we operate. At ExxonMobil,
Corporation and the Traffic Department, awareness of critical health issues and Security is Everybody’s Business.
attendees received free health checks educate the local community about In 2011, we focused on enhanced
and attended a series of informative preventive measures, including lifestyle security countermeasures for people,
workshops on topics such as first aid, changes. Recognizing the critical nature assets, and information in higher-threat
CPR, healthy lifestyle habits, nutrition, of programs such as this, ExxonMobil and locations where ExxonMobil operates.
diabetes, and early cancer screening. Qatar Petroleum, among others, recently We also continued implementation
joined the initiative as strategic partners. of risk assessment processes to identify
An emphasis on health is particularly and implement asset specific security
relevant in view of the successful inaugural ExxonMobil also encourages its enhancements.
National Sports Day decreed by His employees to participate in events that
Highness the Heir Apparent Sheikh Tamim promote healthy lifestyles. ExxonMobil Employment Policies and Practices
bin Hamad Al Thani. Qatar Petroleum and employees in Qatar joined the Woman ExxonMobil focuses on developing
ExxonMobil joined efforts to celebrate Today Mini Marathon, which encourages a a diverse workforce of highly talented
Qatar’s first National Sports Day by healthy, active lifestyle among women and individuals to help our business thrive.
providing employees and their families the promotes the benefits of running. We use a long-term, career-oriented
opportunity to interact with each other and Employees have also taken part in the approach that begins with global
enjoy a variety of sporting activities at QP’s “Walk For Life” organized by Think Pink recruitment of outstanding talent
athletic clubs. In addition, a golf tournament Qatar, an association dedicated to and continues with development
was co-hosted by QP and ExxonMobil to raising awareness of breast cancer from within through a wide range
include employees of RasGas, Qatargas, in the local community. of assignments and experiences.
and other QP subsidiaries.
16 ExxonMobil in Qatar • Citizenship ReportDiversity ExxonMobil is committed to promoting Employee Benefits and Programs
ExxonMobil conducts business in almost leadership opportunities for women Exxon Mobil Corporation is committed to
every part of the world. The diversity of globally and improving the gender balance being the world’s premier petroleum and
ideas, perspectives, skills, knowledge, within our company. Currently, women petrochemical company. Our benefits
and cultures across our company account for about 26 percent of our programs are part of a total employment
facilitates innovation and is a key worldwide workforce, excluding package and are designed to support our
competitive advantage. Through a range company-operated retail stores. business objectives and be responsive to
of programs, activities, and investments, In 2011, 44 percent of management the needs of employees throughout a
we strive to create and maintain a diverse and professional new hires were women, career into retirement. They also support
workforce, representative of the many significantly higher than the percentage ExxonMobil in attracting and retaining the
geographies where we do business. We of women in our broader employee most qualified employees.
developed our Global Workforce Diversity population. Approximately 14 percent
Framework to attract, grow, and retain a of executive employees worldwide are Flexible Work Environment
premier workforce. A series of web-based women. Our commitment to gender Our workplace flexibility programs help us
trainings and tools help our employees equality extends to all aspects of the attract and retain talent, address individual
understand effective cross-cultural employment relationship, including employee needs, and maximize employee
communication and cultural sensitivities. recruitment, hiring, promotion, transfer, productivity. Each country’s workplace
termination, wage and salary flexibility programs differ based on legal
We support local employee networks administration, and selection for training. requirements, infrastructure, and culture.
around the world to foster a work Examples of employee programs
environment committed to diversity Policies Against Discrimination providing flexibility include an adaptable
and inclusion. We believe these strategic and Harassment workplace, modified work weeks,
investments in education will help build a Our Standards of Business Conduct part-time regular employment, extended
global pool of talent in science, govern our employment practices. These part-time employment, and adjustable
technology, engineering, and mathematics standards support our commitment to work hours.
(STEM) fields to support the further equal employment opportunities, prohibit
development of the oil and gas industry. harassment and discrimination in the Performance Review Process
Without education today, we cannot workplace, and align with applicable laws During the annual performance
advance technological innovation to help and regulations in the countries where we assessment and development process,
meet our future energy needs. operate. Any form of discrimination by or all employees have a structured,
toward employees, contractors, suppliers, documented discussion with their
At the end of 2011, about 39 percent and customers in any ExxonMobil supervisors about work goals, training
of our employees were located within workplace is strictly prohibited. objectives, and development needs.
the United States and 61 percent Harassment, even in its most subtle This process provides the basis for
internationally. In 2011, approximately forms, directly conflicts with company ongoing employee coaching and
34 percent of our executives were policy and will not be tolerated. continuous performance improvement.
non-U.S. employees. We hired more than All employees are subject to disciplinary Employees are actively developed
2100 management and professional action, including termination, for any throughout the course of their careers
employees worldwide, about 79 percent act of harassment. We employ a with training, mentoring, and opportunities
of whom were outside the United States. comprehensive education, training, and to join professional networks.
stewardship program to ensure this policy
is understood, implemented, and followed Employee Engagement
by our employees throughout our ExxonMobil strives to communicate
worldwide operations. Each affiliate has openly with our more than 82,000
adopted ExxonMobil’s global standards employees. In 2011, presidents
with modifications only as needed to of the functional companies held
comply with country laws. more than 19 town-hall-style forums
and numerous meetings with
employees, addressing topics ranging
from safety performance to long-term
planning. We hold these forums
across our operations. Employees
have the opportunity to ask senior
management questions on any topic
during these sessions.
17Environmental Performance
The State of Qatar aims to preserve the environment by seeking a balance between
development needs and environmental protection. ExxonMobil is committed to
addressing the challenge of sustainability – balancing economic growth, social
development, and environmental protection so that future generations are not
compromised by actions taken today.
The Protect Tomorrow. Today. initiative For example, a 3-year, QR 7 million EMRQ is also conducting research that
outlines ExxonMobil’s expectations study was undertaken by ExxonMobil to will provide improved understanding of
for each of its businesses to deliver assess the levels of residual chlorine and coral reefs, one of the most diverse
superior environmental performance, chlorination by-products in the Gulf near ecosystems on earth and an important
drive environmental incidents to zero, Ras Laffan as a result of cooling water part of Qatar’s marine environment.
and achieve industry-leading performance. discharges from industrial facilities. The Unfortunately, it can be difficult to identify
Through the Environmental Business study found that the levels of chlorination at early stages when environmental
Planning process, our management by-products associated with Ras Laffan conditions are affecting the health of
drives environmental performance cooling water discharges were well below coral. EMRQ is conducting research
considerations into the full life cycle known concentrations that result in to advance a cutting-edge technology –
of our operations, from initial impact biological effects and, as such, do not Pulse Amplitude Modulation fluorometry
assessments to facility design and pose a significant environmental risk. (PAM) – for use in the Qatar marine
construction and through environment. This technology can assess
the operations phase. This research study, presented to the the health of coral by analyzing the
Ministry of Environment, provides a photosynthetic efficiency of algae that
Environmental Management sound scientific basis to help assess live within the coral. By using PAM’s
Necessary to protecting any environment the potential environmental risk to the unobtrusive testing devices and
is a thorough understanding of it and Gulf environment resulting from industrial fluorescence data, scientists will be
its surroundings. ExxonMobil Research activity. Such sound integrated scientific able to identify potential coral stresses
Qatar launched its first research program studies are essential to developing earlier and more efficiently.
focused on the marine environment of regulations and stewarding an effective
the Qatari coastline. The location of many environmental protection and ExxonMobil’s strong relationship with
industries along the coastline results in management strategy in a manner that Qatar University, solidified by a 2009
continuous interaction between industrial protects the environment and helps Qatar Memorandum of Understanding, is
activities, the Gulf waters, and the and its people realize the Environmental realized in large part through several
organisms supported by the Gulf. Pillar of the Qatar National Vision 2030. collaborative research efforts as well as
Increasing our understanding of this supporting Qatar University and the Qatar
environment is essential to Qatar and University Gas Processing Center via
to ExxonMobil. ExxonMobil’s participation in symposiums
and guest lecturing, providing internships
to qualified candidates, recruiting
graduates, and serving on technical
and advisory committees.
18 ExxonMobil in Qatar • Citizenship ReportThe agreement demonstrates the
collective commitment of ExxonMobil
and Qatar University to raise the abilities
of people and the quality of human life
through the support of academic
excellence and by investing in human
capital, innovative technology and
state-of-the-art facilities in Qatar.
One example of collaborative research
was QR 1 million in funding for Qatar
University to undertake an environmental
baseline survey of an ecologically rich
and biologically productive area along
the northern Qatari coastline that has
not been significantly impacted by
human activities. This baseline survey EMRQ is conducting a study to evaluate the effectiveness of a cutting-edge technology – Pulse Amplitude
is a necessary prerequisite for long-term Modulation fluorometry (PAM) – that can help identify potential coral stresses more efficiently and earlier.
monitoring of the ecosystem. Data from
this study, coupled with data obtained
in follow-up monitoring surveys can be Managing Water Resources from industrial facilities. The goal of
used to formulate scientifically sound, EMRQ has committed to the expansion the water reuse program is to develop
risk-based management strategies to of its work at the Qatar Science & technologies that will utilize industrial
protect the environment. Technology Park (QSTP) with a total water in ways that are beneficial to
investment of more than QR 218 million Qatar. These technologies are especially
through 2014. This investment has important to the State of Qatar and
yielded an additional research program industries operating in the country, as
focused on water reuse. water is a scarce and precious resource
for the region.
The Water Reuse research program is
investigating water treatment technology ExxonMobil is also proud to support the
to allow for the beneficial reuse of treated development of the National Water Law
industrial wastewater with an initial focus through industry consultation under
on engineered wetlands technology using the leadership of Qatar Petroleum HSE
native plant life to naturally clean water Regulations and Enforcement Directorate.
19Environmental, Socioeconomic, and impartial perspective and helps foster determinations. The results of an ESHIA
Health Impact Assessments (ESHIAs) credible and productive relationships with inform our project-based decision-
At ExxonMobil, risk management shapes external stakeholders. making, allowing us to develop execution
our business and investment decisions. plans to better manage key environmental,
This includes evaluating and managing A key aspect of conducting an ESHIA socioeconomic, and health risks.
the risks and opportunities related to involves engaging directly with affected We document, monitor, evaluate, and
social, health, environmental, economic, communities, relevant governmental plan implementation through the life
and cultural matters. When starting major agencies, international organizations, cycle of a project to determine the
upstream projects, we conduct an ESHIA and local NGOs in order to solicit effectiveness of risk management
to identify key risks that could be feedback on a project and gain approaches coupled with continuous
encountered throughout the asset life information that can be used to improve improvement feedback loops.
cycle and develop strategies to the project or its execution. As part of
appropriately manage these risks. ESHIAs the process, stakeholders are given the We apply an “avoid, mitigate, compensate”
are on the critical path of most project opportunity to review and comment on strategy to address potential risks identified
schedules since their submission and ESHIA drafts. Detailed literature through an ESHIA. Our goal is to manage
approval are often tied to the issuance of surveys, scientific studies, technical risks to a level as low as practicable.
major permits or approvals. ESHIAs are evaluations, and socioeconomic This hierarchical approach ensures that
an extensive analysis and require analyses are key activities that require we first consider modifying aspects of the
thorough observation of natural and social significant field time. project design or execution plan to avoid
environments, often over many seasons. an impact. Examples of mitigation include
Socioeconomic analyses include instituting erosion control measures on
We typically contract independent indigenous peoples considerations pipeline easements, employing prudent
consulting firms to conduct ESHIAs on (if applicable), demographic evaluations, waste management procedures, instituting
our behalf, which provides an important way of life analyses, and cultural heritage a “no hiring at the gate” policy to inhibit
Environmental and Social Management Process
When beginning major projects,
RISK WARRANTS ATTENTION
we undertake an ESHIA, starting
with identifying aspects – such
Identify Evaluate Conduct
as roads, pipelines, or equipment Environmental and the Environmental, an Environmental and
– that could interact with the Social Aspects Social, and Regulatory Social Risk
natural and social environment, Setting Assessment
conducting a risk assessment,
and developing strategies to
avoid or manage those risks.
Conducting an ESHIA is one key
activity in this iterative process,
which continues throughout the
life cycle of an asset.
Apply Monitor/Evaluate Manage Risks
Adaptive Management
Continuous Avoid
improvement
and evaluation Mitigate
of changes
Compensate
LOWER RISK
20 ExxonMobil in Qatar • Citizenship Reportin-migration in the vicinity of worksites and Qatar Petroleum Environment Fair ExxonMobil is committed to conducting
facilities, and breaking apart large goods For the third consecutive year, business in a manner that protects
and services procurement contracts so that ExxonMobil sponsored the Qatar the environment. Through the Qatar
local suppliers are better able to compete. Petroleum Environment Fair. Held under Petroleum Environment Fair, ExxonMobil
the patronage of His Excellency Dr. is able to share this critical aspect
In some situations, compensation may Mohammed bin Saleh Al Sada, Minister of our business with the broader
be the most practical solution. We offer of Energy and Industry, the fair welcomed community and help young people
monetary and other types of compensation the general public, with special emphasis think about their own interactions with
to account for the project-related loss on Qatar’s youth, to embrace the notion the environment.
of a resource, attribute, or possession. that the “Environment is Everyone’s
Since 2007, ExxonMobil has undertaken Responsibility.”
or participated in nearly 100 ESHIAs for
projects and activities around the world, All schools in Qatar were invited to the
ranging from single well exploration drilling event, which offered fun-filled zones
programs and new technology evaluation focused on a variety of environments,
pilots to large development mega-projects. such as deserts, oceans, plantations
Conducting ESHIAs is integral to and rain forests.
successful project execution and to
developing long-term, positive relationships
in the communities where we operate.
ExxonMobil’s mascot Kaddour gets kids excited His Excellency Minister Al Sada inaugurates the ExxonMobil exhibit
about protecting their environment. at the Qatar Petroleum Environment Fair with words of appreciation.
21Doha Carbon and Energy Forum
Approximately 150 experts from
internationally renowned academic,
industrial, and governmental institutions
convened at the Doha Carbon and
Energy Forum in Qatar to discuss
the challenge of increased energy use,
finite energy reserves, and the impact
of greenhouse gas emissions. The event
was organized by the Qatar Foundation
for Education, Science, and Community
Development, Qatar Petroleum, and
ExxonMobil. The forum reviewed
recommendations on current, emerging,
and innovative technologies relevant to
Qatar and the Gulf region.
Mark Albers, Exxon Mobil Corporation Senior Vice President, speaks at the Doha Carbon and Energy Forum
about achieving progress and prosperity in a way that protects future generations.
This inaugural event not only
demonstrated how national vision, a
commitment to technology, and wise
policy can overcome challenges and
open opportunities in the energy sector;
it also served as the impetus for similar
knowledge-sharing events.
Natural Gas
The world faces multiple energy and overtaking coal as the second most and virtually eliminate mercury emissions,
environmental challenges. We must popular fuel, after oil, by 2025. while also having low emissions of
provide safe, reliable, affordable, nitrogen oxides and sulphur dioxide.
and environmentally responsible supplies A major use of natural gas is as a fuel
of energy in order to sustain and improve to produce electricity. Increasing natural Another benefit of natural gas-fired power
living standards for people worldwide. gas use in power generation presents generation is that it is competitive without
Given its abundance, affordability, and a very cost-effective and large-scale subsidies or mandates. Moreover, where
lower carbon profile, natural gas is already option currently available to reduce governments adopt policies that make
helping us to address these challenges. greenhouse gas emissions. Compared CO2 and other emissions more costly,
with coal-fired plants, natural gas-fired natural gas will be even more competitive
As stated in our Outlook for Energy power plants can cut carbon dioxide in the power generation sector, as
we expect natural gas to be the fastest- (CO2) emissions by up to 60 percent. compared with coal.
growing major fuel to 2040, with demand In addition, gas-fired plants significantly
rising by more than 60 percent, ultimately reduce particulate and waste generation,
Explore enhanced web content at
exxonmobil.com/citizenship
22 ExxonMobil in Qatar • Citizenship ReportManaging Climate Change Risks
Global climate change remains an extraordinarily complex issue. Scientific evidence
points to the fact that rising greenhouse gas (GHG) emissions present risks to society
and ecosystems – and that these risks warrant action by governments, companies,
and citizens. Reducing GHG emissions while expanding energy supply is one of the
greatest challenges facing our industry and modern society.
At ExxonMobil, our climate change risk Mitigating GHG Emissions While ExxonMobil does not operate
management strategy includes four in Our Operations assets in Qatar, we are committed to
primary elements: mitigating GHG Technological innovation underpins supporting RasGas and Qatargas in their
emissions in our operations, encouraging ExxonMobil’s approach to reducing GHG efforts to reduce emissions through flare
the responsible use of our products, emissions. In particular, we focus on reduction and increased energy efficiency.
developing cutting-edge technology, increasing energy efficiency in the short
and engaging in dialogue to promote term; implementing emission-reducing ExxonMobil is also providing expertise
effective public policy. technologies in the near and medium to progress the engineering phase of a
term; and developing breakthrough combined heat and power project that
technologies for the long term. could be integrated with the South Hook
We are committed to flare reduction, LNG Terminal (a joint venture company
energy efficiency, cogeneration of power with Qatar Petroleum International).
and steam, and production efficiency
improvements to reduce GHG emissions. The South Hook Terminal receives Qatari
LNG cargoes for supply of around 20
percent of the UK natural gas market.
A successful combined heat and power
project would enable reductions in GHG
emissions through improved energy
efficiency of the South Hook Terminal.
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