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4 5 Contents Board of Directors 6 Refining 60 Message from the Chairman 8 QP Refinery 60 2012 Highlights 10 Laffan Refinery 62 Key Consolidated Financial Information 14 Oryx GTL 63 Administration Directorate 20 Pearl GTL 64 Human Resources Department 20 Petrochemical Industries 66 Corporate Training Department 21 Qatar Fertiliser Company (QAFCO) 66 Medical Services Department 22 Qatar Melamine Company 68 General Services Department 22 Qatar Petrochemical Company (QAPCO) 69 Organization & Systems Department 23 Qatar Fuel Additives Company (QAFAC) 71 Energy & Industry Sector’s Qatarization Unit 23 Qatar Vinyl Company (QVC) 72 HSE Regulations & Enforcement Directorate 24 Qatar Chemical Company (Q-Chem) 73 Information and Communication Technology 28 Ras Laffan Olefins Company Ltd. (RLOC) 74 Technical Directorate 32 Qatofin Company Limited 75 Crude Oil and Natural Gas 36 Seef Limited 75 Onshore Fields (Dukhan) 36 Industrial Cities 76 Offshore Fields 41 Mesaieed Industrial City 78 Exploration and PSA Oil Development Activities 43 Ras Laffan Industrial City 80 North Field 46 Other Industries and Supporting Services 82 Al-Khaleej Gas Project (AKG) 46 Gulf Helicopters Company 83 Barzan Gas Project 46 Qatar Steel Company 86 Dolphin Project 47 Qatar Plastic Products Company (QPPC) 87 Drilling Department 48 Qatar Aluminium (Qatalum) 89 Halul Island 49 Qatar Petroleum International Ltd. (QPI) 90 LNG 50 Gulf Drilling International Ltd. (GDI) 92 Qatargas Operating Company Ltd. 50 Financial Report 94 RasGas Company Limited 54 Qatar Petroleum Investment Portfolio 101 NGL and Local Gas 56 QP Gas Operations 56
6 7 Board of Directors HE Dr. MohammedBin Saleh Al-Sada Minister of Energy and Industry Nasser Khalil Al-Jaidah Saad Sherida Al-Kaabi CEO Director Qatar Petroleum Oil & Gas Ventures, International (QPI) Qatar Petroleum Member Member Chairman & Managing Director of Qatar Petroleum Hamad Rashid Al-Mohannadi Fahad Hamad Al-Mohannadi CEO, RasGas General Manager Qatar Electricity & Water Company (QEWC) Member Deputy Chairman Khalifa Abdulla Al-Sowaidi HE Essa Hilal Al-Kuwari Managing Director President Qatar Fertiliser Company Qatar General Electricity (QAFCO) & Water Corporation (Kahramaa) Member Member
8 9 Message from the Despite numerous challenges and global economic difficulties, Qatar Qatar is also reinforcing its position as the world’s largest In its constant efforts to fulfill the country’s development strategy Ensuring sustainability and establishing excellence take these Chairman is looking forward to increased LNG producer with its ability to for its industry and infrastructure, challenges to a new level, but we are development and higher prosperity engage in new long-term sales Qatar Petroleum has engaged in a quite confident that these building buoyed by the inspiration of its and purchase agreements with number of cooperation programs, blocks assembled year after year will leaders and the aspirations of its customers across the globe. organized several world scale contribute to a bright future for the people. events, and established research State of Qatar, and will ensure The year 2012 was significant and technology programs with a continued prosperity in the The year 2012 witnessed continued and marked the sale of the first number of countries and renowned years ahead. progress in a number of projects commercial shipment of normal international companies. These that were initiated in order to meet paraffin from Pearl GTL, the world’s efforts were aimed at developing Qatar’s future needs. Construction largest gas-to-liquids plant. This is the energy sector, improving the Dr. Mohammed Bin Saleh Al-Sada works for the Barzan Gas Project an important milestone and a major efficiency of its installations, and Minister of Energy and Industry started in November 2011 and step on the road to a diversified Qatar is entering a new phase optimizing the use of its natural Chairman & Managing Director 50% of the work was completed as Qatari industrial base. The year in its economic development resources. of Qatar Petroleum of December 2012. The plant will also witnessed the signing of a with great determination. Its provide natural gas to complement Memorandum of Understanding Achieving those goals goes hand hydrocarbons revenues have current and future infrastructural with Mowasalat to study the in hand with the development of maintained impressive growth developments such as power and feasibility of introducing compressed the main driver of this success –the rates while its sustainable desalination plants, and the new natural gas (CNG) as fuel for public Qatar Petroleum workforce. Both development efforts move Doha airport and seaport. Barzan transport vehicles in Qatar, which in Qatar’s and QP’s success would forward with great resolve will also secure efficient energy turn led to the inauguration of the not have been possible without and dedication. Revenues are supplies for the future as the country pilot compressed natural gas (CNG) the dedicated and sincere efforts being reinvested in strategic prepares itself to host the FIFA World fueling station in the New Industrial of our employees, partners and projects that help create a solid Cup in 2022 and aims to meet the Area. contractors, who are working hard foundation for greater economic National Development Strategy to make Qatar Petroleum a truly growth and expansion. The past year also saw the launch (2011-2016) requirements. international player in the oil and of the first Sustainable Development gas Industry. Industry Report (SDIR) of Qatar’s energy and industry sector. QP The journey to success and the also extended its partnership and prosperity of our nation is full of cooperation with the World Bank- challenges which we are ready to led Global Gas Flaring Reduction meet. Under the leadership of His (GGFR) initiative to reduce the Highness the Emir, Sheikh Tamim flaring of gas associated with oil Bin Hamad Al-Thani, we are already and gas production as a concrete building milestones on the way to contribution to improving energy achieving Qatar’s National vision efficiency and mitigating climate as articulated by His Highness the change. Father Emir, Sheikh Hamad Bin Khalifa Al-Thani.
10 11 2012 Highlights January February March May 3 January - His Excellency Dr. Mohammed bin 9 February - H.E. Dr. Al-Sada and H.E. Mr. 22 March - QP and Shell announced the sale of the 7 May - QP and Total signed a research and Saleh Al-Sada, Minister of Energy and Industry and Sukwoo Hong, Minister of Knowledge Economy of first commercial shipment of normal paraffin from technology project agreement aimed at increasing Chairman & Managing Director of QP, launched the the Republic of Korea, signed a Memorandum of the Pearl GTL plant, the world’s largest gas-to-liquids hydrocarbons production in Qatar by significantly first ever Sustainable Development Industry Report Understanding (MOU) on cooperation between the facility. GTL normal paraffin is an alternative premium improving the efficiency of acid stimulation in (SDIR) of Qatar’s energy and industry sector. two countries on matters related to industry, energy feedstock for detergent production. carbonates oil and gas fields. and natural resources. 29 May - QP and Qatar University signed a 13 February - QP and Qatar Petrochemical Memorandum of Understanding (MOU) covering the Company (QAPCO) signed a Heads of Agreement April general framework and governing principle of their (HOA) for the development of a new, large-scale continuous cooperation in various areas. petrochemical complex in Ras Laffan Industrial City. 14 April - H.E. Dr. Al-Sada inaugurated the sixth The project is scheduled for completion in 2018. edition of the annual QP Environment Fair, which showcased the environmental programs and initiatives of QP directorates and departments, the July corporation’s subsidiaries and joint ventures, as well as other industry stakeholders. 2 July - QP and Shell agreed to initiate the next project definition phase of Front End Engineering and 15 April - QP and Mowasalat signed a Design (FEED) for a large-scale petrochemicals project Memorandum of Understanding (MOU) to jointly in Ras Laffan Industrial City. study the feasibility of introducing compressed natural gas (CNG) as a fuel for public transport 25 July - QP, representing the Qatari government, vehicles in Qatar. signed an agreement authorizing PetroChina Investment to acquire 40% of the exploration and 12 January - H.E. Dr. Al-Sada signed the production rights from GDF Suez Exploration Qatar engineering, procurement and construction (EPC) under its Qatar’s Block 4 Exploration and Production contract with Samsung Engineering for the Diesel Sharing Agreement (EPSA). Hydrotreater (DHT) Project of the Qatargas-operated Laffan Refinery. 14 February - QP organized various sports activities in all its operational areas in line with the State of Qatar’s first-ever National Sports Day.
12 13 September December 3 September - H.E. Dr. Al-Sada awarded a total 24 November - H.E. Dr. Al-Sada inaugurated the 4 December - The Ministry of Energy and Industry, 12 December - H.E. Dr. Al-Sada signed a long- of seven companies from QP’s joint ventures and pilot compressed natural gas (CNG) fueling station in in partnership with the Qatar National Food Security term Liquefied Natural Gas (LNG) Sales and Purchase contractors as winners of the second Qatar Oil & Gas Program (QNFSP), signed a Letter of Interest (LOI) Agreement (SPA) between Qatar Liquefied Gas the New Industrial Area. Industry Safety Excellence and Innovation Awards. signifying the State of Qatar’s participation in the Company Limited 3 and PTT Public Company Limited 26 September - H.E. Dr. Al-Sada signed a Global Atlas for Solar and Wind Energy project of the of Thailand. new long-term Liquefied Natural Gas (LNG) Sale International Renewable Energy Agency (IRENA). 17 December - Under the patronage of H.E. Dr. Al- Agreement between Qatargas Operating Company 4 December - QP and the World Bank-led Global Sada, QP’s Offshore Operations celebrated “Offshore Limited and Kansai Electric Power Company Gas Flaring Reduction (GGFR) partnership agreed Day 2012” in Halul Island to mark its 50 years of Incorporated (KEPCO) of Japan. to extend their cooperation in reducing the flaring success in operating, producing and exporting of gas associated with oil and gas production as a hydrocarbons from Qatar’s offshore fields. October concrete contribution to improving energy efficiency and mitigating climate change. 11 October - H.E. Dr Al-Sada signed a new long-term Liquefied Natural Gas (LNG) Sales and 11 December - His Highness Sheikh Tamim bin Purchase Agreement (SPA) between Qatar Liquefied Hamad Al-Thani, the Emir, officially inaugurated the Gas Company Limited (3) and Chubu Electric Power QAFCO 6 Project in Mesaieed Industrial City, thus Company Inc. of Japan. scaling up the total urea production output of Qatar Fertiliser Company (QAFCO) to 5.6 million tonnes per year. November 26 November - H.E. Dr. Al-Sada launched the 5 November - QP and the College of North Qatar Energy and Industry Sector Sustainability Report Atlantic-Qatar (CNA-Q) signed a Memorandum 2011 on the sidelines of the Qatar Sustainability Expo of Understanding (MOU) covering the general 2012. framework and governing principles of their cooperation related to the training and professional development of QP staff. 20 November - His Highness Sheikh Hamad bin Khalifa Al-Thani, the Father Emir, officially inaugurated Qatar Petrochemical Company’s (QAPCO) third low-density polyethylene plant (LDPE 3) at a ceremony in Mesaieed Industrial City.
14 15 Qatar Petroleum Key Consolidated Financial Information For the year ended 31 December 2012 Sales Revenue Five-year comparison - QR Millions Capital Expenditures Five-year comparison - QR Millions 330,329 36,791 35,350 289,179 32,854 26,390 188,015 24,455 168,488 118,141 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Net Income Five-year comparison - QR Millions Total Assets Five-year comparison - QR Millions 114,137 494,388 88,862 367,551 54,567 308,897 282,308 55,800 246,034 35,207 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Net Cash Flow from Operations Five-year comparison - QR Millions QR Millions Dec. 2012 Dec. 2011 Dec. 2010 Dec. 2009 Dec. 2008 132,022 117,348 Sales Revenue 330,329 289,179 188,015 118,141 168,488 Net Income 114,137 88,862 54,567 35,207 55,800 58,560 58,517 Net Cash Flow from Operations 132,022 117,348 58,517 40,864 58,560 40,864 Capital Expenditures 26,390 32,854 24,455 35,350 36,791 2008 2009 2010 2011 2012 Total Assets 494,388 367,551 308,897 282,308 246,034
16 17 Country Effective Percentage Subsidiaries of QP Subsidiaries of Registration Holding 2012 Al Koot Insurance and Reinsurance Company SAQ Qatar 10.00% Qatar Petroleum (QP) is a state-owned public corporation established by Emiri Decree No. 10 in 1974. It is responsible for all phases of the oil and gas industry in the State of Qatar. Al Shaheen Energy Services Limited UK 100.00% The principal activities of QP, its subsidiaries and joint ventures are the exploration, production, local and international sale Al Shaheen Energy Services L.L.C. USA 100.00% of crude oil, natural gas and gas liquids, refined products, synthetic fuels, petrochemicals, fuel additives, fertilizers, liquefied natural gas (LNG), steel and aluminium. Al Shaheen Distribution Limited Q.S.C. Qatar 100.00% The operations and activities of QP and its affiliates are conducted at various onshore locations, including Doha, Dukhan and Gulf Helicopters Company Q.S.C. Qatar 10.00% the Mesaieed and Ras Laffan Industrial Cities, as well as offshore areas, including Halul Island, offshore production stations, drilling platforms and the North Field. Qatar Steel Company Limited Qatar 51.00% QP’s strategy of conducting hydrocarbon exploration and development are through Exploration and Production Sharing Qatar Petroleum LNG Services (QG II) Limited Qatar 100.00% Agreements (EPSA) and Development and Production Sharing Agreements (DPSA) concluded with major international oil and gas companies. Qatar Petroleum Gas Trading (QG II ) Limited Qatar 100.00% Thriving on a spirit of enterprise, each of our joint ventures is underpinned by transparency, innovation and high standards of Qatar Terminal Company Limited Qatar 100.00% quality and service. At Qatar Petroleum, we are committed to one thing above all: Excellence. Amwaj Catering Services Company Limited Qatar 10.00% QPI China Limited Cayman Islands 100.00% Country Effective Percentage Subsidiaries of Registration Holding 2012 QPI China (North) Limited Cayman Islands 100.00% QPI China (South) Limited Cayman Islands 100.00% Industries Qatar Q.S.C. Qatar 51.00% QPI China North East Limited Cayman Islands 100.00% Qatar Petroleum Qatar Gas 3 Limited Qatar 100.00% QPI Global Ventures Limited Cayman Islands 100.00% Qatar Holding Intermediate Industries Company Limited Qatar 100.00% QPI Mauritania Limited Cayman Islands 100.00% Qatar Petroleum International Limited Qatar 100.00% QPI Vietnam, Limited Cayman Islands 100.00% Al Shaheen Holding Q.S.C. Qatar 100.00% QPI Upstream Limited Cayman Islands 100.00% Qatar Petroleum Qatar Gas (4) Company Limited Qatar 100.00% QPI Management International Limited Cayman Islands 100.00% Gulf International Services Q.S.C. Qatar 10.00% QPI Egypt Limited Cayman Islands 100.00% QP Ras Gas (III) Limited Qatar 100.00% QPI Libya Limited Cayman Islands 100.00% QPI Congo Limited Cayman Islands 100.00% Country Effective Percentage Joint Ventures of Registration Holding 2012 QPI India Limited Cayman Islands 100.00% Qatar Liquefied Gas Company Limited Q.S.C. Qatar 65.00% QPI Philippines Limited Cayman Islands 100.00% QPI Gabon Limited Cayman Islands 100.00% Ras Laffan Liquefied Natural Gas Company Limited Qatar 63.00% Ras Laffan Liquefied Natural Gas Company Limited (II) Qatar 67.05% Ras Gas Company Limited Qatar 70.00% Qatar Vinyl Company Limited Q.S.C. Qatar 68.22% Qatar Chemical Company Ltd. Q.S.C. Qatar 51.00% Qatex Limited Qatar 51.00% Oryx GTL Limited Qatar 51.00% Country Effective Percentage Qatargas Upstream Joint Venture (Unincorporated) Qatar 65.00% Joint Ventures of QP Subsidiaries of Registration Holding 2012 Qatar Liquefied Gas Company Limited (II) Q.S.C. Qatar 67.50% Al Shaheen GE Services Company Qatar 50.00% Qatar Gas Operating Company Limited Qatar 70.00% Al Shaheen Weatherford Q.S.C. Qatar 50.00% Astad Engineering Consulting and Project Management Q.S.C. Qatar 50.00% Gulf Drilling International Limited Qatar 7.00% Qatar Chemical Company Limited (II) Qatar 51.00% Qatar Fertiliser Company Q.S.C . Qatar 38.25% Ras Laffan Olefins Company Limited Q.S.C. Qatar 39.45% Qatar Fuel Additives Company Limited Qatar 25.50% Laffan Refinery Company Limited Qatar 51.00% Qatar Liquefied Gas Company Limited (3) Qatar 68.50% Qatofin Company Limited Q.S.C. Qatar 25.97% Qatar Liquefied Gas Company Limited (4) Qatar 70.00% Gasal Q.S.C. Qatar 30.50% Qatar Petrochemical Company Limited Qatar 40.80% Qatar Aluminium Company Limited Qatar 50.00% Ras Laffan Liquefied Natural Gas Company Limited (3) Qatar 70.00% Barzan Gas Company Limited Qatar 93.00% Seef Limited Qatar 80.00%
18 19 Country Effective Percentage Country Effective Percentage Other Investments of Registration Holding 2012 Joint Ventures of of Registration Holding 2012 Arab Shipbuilding and Repair Yard Company Bahrain 18.80% QPHolding AKG Subsidiaries’ Limited Subsidiaries Bahamas 12.5% South Hook Gas Company Limited UK 70.00% Arab Maritime Petroleum Transport Company Kuwait 14.80% South Hook LNG Terminal Company Ltd. UK 67.50% Arab Petroleum Investment Corporation Saudi Arabia 10.00% Adriatic LNG Terminal Limited Italy 22.05% Arab Petroleum Services Company Libya 10.00% Egypt Refining Company Egypt 27.95% Arab Petroleum Pipelines Company Egypt 5.00% Golden Pass LNG Terminal USA 70.00% Qatar Electricity & Water Company Qatar 11.20% Golden Pass Pipeline USA 70.00% Ras Laffan Power Company Qatar 10.00% Golden Pass Products LLC USA 70.00% Qatar Fuel QSC (Woqod) Qatar 40.00% Golden Pass LNG Marine Services USA 70.00% Nakilat Agency Company Qatar 5.00% Qatar Plastic Products Company WLL Qatar 13.59% Mesaieed Power Company Qatar 20.00% Qatar Melamine Company (S.A.Q) Qatar 62.95% Qatar Navigation QSC (Milaha) Qatar 9.20% Gulf Formaldehyde Company (Q.S.C.C.) Qatar 26.78% Ras Girtas Power Company Qatar 15.00% PII Group Limited (UK) UK 50.00% SOLB Steel Company (formerly South Steel Co) Saudi Arabia 15.80% PII North America LLC USA 50.00% Qatar Metals Coating Company Qatar 25.50% Total E&P Mauritania Cayman Islands 20.00% Gulf United Steel Holding Company Bahrain 12.80% Arab Refining Company Egypt 36.68% QPI & Shell Petrochemicals (Singapore) PTE Limited (“QSPS”) Singapore 49.00% Long Son Petrochemical Company Ltd. Vietnam 25.00% Others * *These represent various investments mainly in Qatar Exchange and the effective QP interest is less than 5%. Country Effective Percentage Subsidiaries of of Registration Holding 2012 QP Subsidiaries’ Subsidiaries QTL U.S. Holding Corporation, Inc. USA 100.00% QTL Hungary Financing KFT Hungary 100.00% QTL Italy Branch Italy 100.00% QTL U.S. Terminal L.L.C. USA 100.00% QTL U.S. Service Co. L.L.C. USA 100.00% Qatar Chemical Company Distribution Company Limited Q.S.C. Qatar 51.00% Qatar Chemical Company II Distribution Company Limited Q.S.C. Qatar 51.00% Qatar Steel Company FZE Dubai Dubai 51.00% Qatar Steel Industrial Investment Company S.P.C. Qatar 51.00% Qatar Steel Rebar Fabrication Facility S.P.C. Qatar 51.00% South Industries Company (KSA) Saudi Arabia 51.00%
20 21 Corporate Training Administration Department The Corporate Training Department of QP’s technical departments. Of Directorate continued to meet the higher the remaining 239 trainees, 204 education needs in the energy are enrolled in the Tailor Made and industry sector through the Program (TMP) and 35 in the Clerical sponsorship of nationals studying at Preparation Program (CPP). local and overseas universities. Out QP employees continued to enhance The Administration Directorate strives to provide quality of 401 active students taking up their competencies through the courses mainly in the engineering service to support QP’s operations in the areas of Human professional training programs discipline, 141 university graduates conducted in-house, within Qatar joined various QP departments Resources, Qatarization, Corporate Training, Medical or overseas. A total of 17,361 during the year. The programs training needs were met in 2012. Services, General Services and Organization and Systems. being studied include engineering, Additionally, QP employees also petroleum engineering, and The directorate’s customers include QP employees and completed 2,269 e-learning courses geology, sciences, business and a during the year. range of other specialist fields. departments, QP-affiliated companies, and community As part of QP’s strategy to increase The department continued to residents in remote locations. review and improve its vocational support to academic institutes Qatar Career Fair 2012 in Qatar and to utilize the best training programs to meet the educational resources within the industry’s requirements. The country in line with QP’s training Human Resources overall duration of the Technician Preparation Program (TPP) was needs, the department signed memorandums of understanding Department reduced without affecting the quality of training. Out of a total (MOUs) with Qatar Foundation, Qatar University and the College of The Human Resources (HR) The automation of HR e-services of 846 vocational trainees, 607 are continued with 20 more services North Atlantic-Qatar (CNA-Q). Department assisted and enabled taking up the TPP, which is geared QP operations to implement the computerized to provide a faster, to meet the Qatarization needs The department also expanded 12-hour shift under the 4 x 4 work more efficient service for employees. its training infrastructure by cycle for onshore operational staff, Various HR awareness workshops commissioning and operating in addition to the existing 8-hour were also conducted for all line the Dukhan Learning Center and shift under the 5/2 work cycle. departments to enhance the it enhanced its training delivery The new cycle is expected to have efficiency of HR processes. The areas through advanced workshops and a positive impact on employee covered in these workshops included featured classrooms, enabling the productivity, reduced commuting employee relations, professional delivery of Technical and Further time and safety. development, manpower supply and Education (TAFE) Certification demand planning, and performance programs and professional training Talent management was further appraisals. courses in line with international enhanced through a reduction in standards. the recruitment cycle time and an improved induction program. This program puts increased focus on HSE (Health, Safety and Environment). A new employee “on boarding” web page is also under development.
22 23 Medical Services Organization & Systems Department The Medical Services Department highest clinical standards, and it also Department The Organization & Systems the Strategic Planning & Policy continued to provide primary care, embarked on a primary healthcare Department is mandated to Directorate. It also finalized the occupational health, emergency accreditation process as part of handle the management of scope of work (SoW) for a call-off and support services for over improving quality and enhancing organizational structure changes, contract for fire fighting operations, 164,000 beneficiaries served by safety. assessment of manpower contracts, and it facilitated the transfer of QP’s healthcare clinics in Doha, implementation of business process the Oil Spill Department from The department successfully held Ras Laffan, Mesaieed, Dukhan and management, development of the Corporate Health, Safety and the first QP Occupational Health offshore. Additionally, healthcare inter-departmental procedures, Environment Department (SQ) to the Conference in March 2012, and services were established in Ras development of terms of reference Marine Department (MR). it introduced employee health Laffan and Mesaieed Ports to for corporate committees, promotion and awareness programs, In addition, the department finalized control points of entry into Qatar in development and maintenance of including those on mental health, the merger of telecommunication compliance with regulations of the directorate/department mandates, weight loss and diet control. units in Mesaieed Industrial City World Health Organization (WHO). development and review of job and Refining Directorate with the The provision of dental services in As part of its corporate social descriptions, and the establishment Information and Communication Ras Laffan and the formation of responsibility (CSR) initiatives, of enterprise frameworks for Technology (ICT) Department as a Medevac team to provide cover the department launched organizational excellence and well as the merger of Offshore and for all offshore locations were also several projects, including the change management. Dukhan Production laboratories. The introduced. Disposal of Unwanted Medicines In 2012, the department completed Organization & Systems Department Properly (DUMP) in Mesaieed. The Medical Services Department the merger of two industrial also introduced scheduled cyclical Furthermore, training was provided continued with its emphasis cities under one directorate, and reviews of mandates, terms of to undergraduate and Pharm-D on preventive healthcare and it also handed over its Enterprise reference and inter-departmental students from the College of established preventative measures Risk Management function to procedures. Pharmacy of Qatar University and for chronic disease management. Arab Board students from the It achieved its goal to ensure Supreme Council of Health. that all healthcare professionals are competent to practice to the Energy & Industry Sector’s Qatarization Unit General Services The energy and industry sector’s Qatarization Unit held formal In May, the Annual Qatarization Review Meeting, which is chaired by Department The General Services Department is built-up space is being developed meetings with sector companies and reviewed their Qatarization His Excellency Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy plans, strategic human capital and Industry, provided an overview mandated to manage and control for QP’s Corporate Headquarters. issues, training strategy, of Qatarization in the sector. In the delivery of general services to All departments will be located Qatarization websites and CSR attendance were the chief executives all areas and locations under the within nine towers. It is estimated initiatives in line with the Qatar and senior administration and control of QP in Doha. Among the that the completion of the interior National Vision 2030 and the human resources managers of each department’s responsibilities are the construction and moving-in date will National Development Strategy. participating company, education provision of housing and facilities be by 2017. and government partners, and (office) services and maintenance, The unit also continued building Six cafes were established in 2012 selected guests. A special theme of transport services, recreation strong relationships with its by the department to provide the meeting covered “Implementing services, and retention of non- education partners. In addition, light snacks and beverages to QP the National Development Strategy” technical records for all areas. it successfully held five strategic employees at their workplace. and four senior executives from human capital planning workshops Currently, QP departments and Qatar-based organizations shared that were custom designed and facilities are distributed across their experiences in this regard. The conducted by the Chartered different locations in Doha. The fourth Annual Qatarization Award Institute of Personnel and General Services Department is the recipients were RasGas, QAPCO, Development (CIPD) from the UK. custodian for 13 office buildings Kahramaa, Qatargas, ExxonMobil, Initiated and organized by the at various locations in Doha and is and Dolphin Energy. Qatarization Unit and sponsored effectively managing these facilities. by Qatar Petrochemical Company In order to relocate all office-based (QAPCO), this was a first for the Doha staff to a common location, energy and industry sector. approximately 629,000 m² of
24 25 HSE Regulations Our Mission “To ensure health, safety and environmental risks are appropriately regulated and assure compliance with said regulations to minimize HSE & Enforcement risk exposure to people, environment and the industry.” Key Objectives Directorate • • To ensure that all operators within the sector are in compliance with the laws of Qatar and abiding by their obligations; To improve sustainable development (SD) performance via the Sustainable Development Industry Reporting and Award scheme; The HSE Regulations & Enforcement Directorate (DG) • To foster a culture of HSE and SD excellence across the oil and gas sector; was established to undertake the tasks entrusted • To introduce best international HSE regulatory practices and to Qatar Petroleum under the provisions of Decree framework; Law No. 4 of 1977 to follow up the implementation • To assist national bodies in formulating sound HSE and SD regulatory policies and improve monitoring on a national basis. of Law No. 8 of 2004 and to undertake the tasks, Launching ceremony of Qatar’s Energy and Industry Sector Sustainability Report functions and responsibilities assigned to Qatar Major Regulatory/ Petroleum and the Ministry of Energy and Industry Legal Activities during 2012 as executive bodies in implementing the provisions • Signed a Memorandum of Understanding (MoU) with Qatar of the Environment Protection Law promulgated by University; Decree Law No. 30 of 2002. The directorate is also • Prepared 24 Periodic Review Reports related to HSE treaties, protocols and conventions and guidelines for industry guidance and mandated to control the implementation of, and compliance; compliance with, the laws relating to health, safety • Conducted legal review of HSE guidelines for industry and general advice. and environment as regards petroleum operations and to prepare for emergency situations and Major HSE Activities evaluate studies on the environmental impact of • Drafted the HSE Technical framework and its associated regimes and existing petroleum operations. circulated them to shortlisted stakeholders for consultation with the idea of application across the sector in the very near future; • Conducted inspection visits to 29 industrial sites to ensure that process safety was in line with the HSE requirements of national legislation and best industry practices; • Developed a heat stress database and collected statistics and found 47 cases of heat stress during the year and developed ways to reduce such incidents; • Developed Occupational Health Strategies with various operators and carried out assessments across the sector’s medical facilities with a focus to improve their performance; • Prepared Emergency Response Preparedness (ERP), Ballast Water Management Guidelines and Mutual Aid & Emergency Drill Guidelines and issued these to industry for implementation; and • Conducted compliance assessment of MIC operators.
26 27 H. E. Dr. Al-Sada presenting the first copy of Qatar Energy and Industry Sector Sustainability Report to H. E. Abdulla bin Hamad Al-Attiyah Sustainability Development Industry Reporting (SDIR) Awards presentation ceremony President of the Administrative Control & Transparency Authority Major Sustainable Development Future Plans & Stakeholder Engagement The HSE Regulations & Enforcement Directorate will continue to: • Completed the 2011 Qatar Energy & Industry Sector • Carry out industry supervision in order to minimize HSE risks, produce Sustainability Industry Report, which showcased the sector’s the Sustainable Development Industry Report annually, recognize contribution toward climate change challenges, and organized operators’ performance via the award scheme on the basis of their its launching ceremony at the Qatar Sustainability Expo ahead of sustainable development reporting, and implement programs that UNFCC COP 18; address the Qatar National Vision 2030 and the NDS 2011-2016; • Launched a video representing the energy and industry sector’s • Issue technical regulations relating to safety in the oil and gas sector; initiatives on climate change and GHG emissions reduction at and COP 18 and the Qatar Sustainability Expo. and received wide • Contribute to plans of action to raise the level of performance in the acclaim nationally, regionally and internationally for the video; areas of health, safety and environment in the sector, including the • Represented the energy and industry sector at the Qatar assurance to investors and related entities involved in the financial, Sustainability Expo and organised presentations on climate human and economic domain in the oil and gas sector that their change by experts from academia and industry; resources are properly and safely monitored to a high level of professionalism. • Provided inputs during the COP 18 negotiations based on the National Development Strategy (NDS) 2011-2016 and UNFCCC- COP17 decisions; • Provided technical support to Qatar Petroleum in extending the partnership with the World Bank on the Global Gas Flaring Reduction Partnership (GGFR) and engaged with operators on capacity building to explore new avenues to reduce flaring across the industry; • Completed the requirements of the first monitoring period for the Al-Shaheen CDM Project and submitted its related reports for the second and third monitoring periods; and • Conducted workshops and industry events to improve the HSE and sustainable development capacity and knowledge sharing within the sector.
28 29 Information and As part of the ICT Department’s evident in the absence of attack on strategic objective to optimize QP. The department engages with ICT processes and ensure ICT users to bring about a heightened service availability and continuity, sense of user awareness of IT and Communication the department has issued the release and deployment process, which is integrated with the information security incidents, and the department is receiving and acting on valuable feedback. Technology (ICT) project management and change management processes. The purpose of the process is to The ICT Department has been fully engaged with ictQATAR to ensure a roadmap to compliance with a coordinate releases with different law that will soon be introduced, scopes, complexities and degrees such as the Critical Information of risk. This ensures that all releases Infrastructure Protection (CIIP). As are effectively deployed into a live QP effectively utilizes its information and environment so that reliability of the underlying policies, manuals and standards from ictQATAR are communication technology system and services hardware, software and service aligned with industry best practices, components is maintained. the department will continue on its through the corporation’s business value chains in In 2012, regional oil and gas journey of improvement to ensure the exploration, production, transport, refining and companies including those in Qatar full compliance. were targeted by cyber security marketing stages. The ICT Department’s mission is to After extensive analysis and audit, attacks. The motivation was the SAP AG Company has certified unknown but critical operations enable QP’s vision by capitalizing on ICT capabilities were crippled and the business QP ICT SAP Support Competency Centre as a SAP-certified Customer and resources to maximize business benefits and outage period was relatively long Center of Expertise (CCOE). QP has compared to regular attacks. The address future opportunities and challenges. achieved scores within the best 25% ICT Department has been working CCOE’s around the world. Also, proactively to ensure that the IT according to the report, QP ICT environment is best protected from scored 93% on Quality, with 95% as these types of attacks and this was its total score. The ICT Department’s activities can be categorised into two broad areas: business projects and technology initiatives.
30 31 Business Projects Technology Initiatives Vendor Portal & Round the Clock Self Service e-Registration Multimedia Service To reduce dependency on ICT Phase II Program To cater to different operational resources and to ensure compliance with ICT standard software lists, and business requirements, the Vendor e-Registration – The Phase This program is responsible for the the ICT Department has introduced ICT Department has extended its II System is currently used by direction, vision, and prioritization a self-service application that service desk operations from normal more than 2,000 companies. This of portal and multimedia initiatives allows users to install their required office hours to 24x7 operations. solution is designed to facilitate and projects related to the intranet software and applications remotely This was introduced to be in line the participation of all prospective and internet. In its continuous or to run the installation in the back with QP’s business operation vendors in QP tenders or to make efforts to develop the portal as the end without disturbing user activity hours and to support QP users them eligible to receive Requests ultimate one-stop shop that enables and without the need to raise who are on business trips across for Quotations as they register and information management, web requests to the ICT Department. This various time zones. Moreover, it obtain a QP SAP Vendor Code, a content management, collaboration has resulted in faster and when- allows continuous monitoring of mandatory requirement for the and transparency among all QP needed delivery of software with live systems to ensure minimum issuance of Requests for Quotations employees and stakeholders, minimum dependency on ICT staff. downtime and increase customer or Tender Documents by QP. the portal team implemented 19 satisfaction. department intranet websites. To By using this system, vendors measure the level of satisfaction of can keep their company’s details, including commercial registration, users from different QP business units, 20 online surveys have been Citrix updated as and when required to developed and published on the To increase productivity and avoid delays in the processing of QPNet portal. In the same direction, the availability of systems, the tenders, contracts, purchase orders the video streaming service has ICT Department uses desktop and payment-related matters. The been provided to make corporate virtualization solution (Citrix) implementation of this system has videos accessible as needed to save that transforms desktops and significantly reduced paper work time, increase productivity, promote applications into a secure on- and registration processing time. It knowledge sharing and effectively demand service available to any provides QP users with easy access improve communication among QP user, anywhere, on any device. to vendors’ data including the departments. nature of their business. The system also produces management reports regarding the registration status of new vendors. Port Management Information System The Port Management Information System (PMIS) offers significant benefits for the operations of the Mesaieed Port. These include enhancing the safety of vessel traffic at the port, maximizing product export and import capability and capacity, maximizing port revenue by optimizing the use of all port resources and facilities, improving business processes, and reducing and minimizing paperwork and manual processes. The system also reduces delays and waiting times at different operational steps such as vessel nomination, scheduling, pre-arrival activities, service requests, pilotage, berthing, shifting, cargo operations and inspections, through effective resource planning, scheduling, information sharing and others.
32 33 Over the last 20 years, there has Oil & Gas- Technical been a gradual change and growth in the value, type, numbers and Related Mega complexity of projects managed by the directorate as well as a Infrastructure Projects Directorate significant increase in the number of its customers. • Sulfur Recovery Upgrade (SRU) The key strategic projects managed Project at Mesaieed – Upgrade and implemented by the Technical the existing Sulfur Recovery Directorate in 2012 are as follows: Unit with the installation of a QP’s Technical Directorate has been at the new Acid Gas Enrichment Unit forefront of project activities in Qatar, managing (AGEU) and Tail Gas Treatment Unit (TGTU) as well as to and implementing capital projects for QP’s core upgrade the utilities to achieve 99.5% of sulfur recovery. business, major infrastructure projects for joint • Acid Gas Recovery Project (AGRP) venture developments, and infrastructure projects at Dukhan – Build two 14.5-km, for the State of Qatar. The directorate continues 30-inch pipelines and an Acid Gas Compression Unit with to pursue its mission to provide appropriate associated utilities to include off- site facilities at the Arab-D plant solutions and execute projects with special in Dukhan. adherence to safety, environment, health, quality, • Ras Laffan Port Expansion Project – Expand the existing Ras Laffan synergy and human capital development. Its Port to handle 77 million tonnes main objective is the successful execution of all per annum of LNG and other liquid products. capital projects in accordance with their scope of • Ras Laffan Common Cooling work, schedule and the agreed budget. Water Project Phase-II – Construct a centralized Common Cooling Water System for key consumers within Ras Laffan Industrial City. In Phase II, Category 1 and 2 have been commissioned, while Phase III is in progress.
34 35 Onshore Projects Offshore Projects Significant • Qatar Petroleum District – This is QP’s iconic project that will house • High voltage network upgrade • National Security Shield (NSS) – Achievements/ the business hub and central headquarters of the corporation at Dukhan; Provide a system for observation, detection, decision making and Initiatives in 2012 in West Bay. • Glycol regeneration units at intervention to enhance the • Crude Oil Import / Export Dukhan; • Grading of Plots and Corridors security of all vital offshore assets Facilities and Beach Landing and the Construction of • Strategic Gas Transmission by installing eight new Sensor Valves at Halul – Upgraded the Associated Roads for Future Pipeline (SGTP twin 36” Tower Platforms (STPs) and system for enhanced operational Downstream Venture Industries pipeline); Forward Mounted Base Platforms flexibility; at Ras Laffan City – This project (FMBs). • 18” multi-product pipeline from • QP won the 2012 Geospatial is in accordance with RLC’s the QP Refinery to the Doha • Halul Island: World Forum Excellence Business Master Plan which depot (Abu-Hamour) for a multi- Award in recognition of its aims to provide an appropriate • Installation of new Internet product transfer system; implementation of a geographic foundation for the expanding Protocol (IP) based PA / GA, information system (GIS) project downstream industries at RLC. • Drainage system upgrade – QP CCTV and access control system for security and at QP Refinery in Mesaieed. • Re-development of Bul Hanine Refinery; operational requirements; fields and development of new • Replacement and construction onshore gas processing facilities of new service berths at Ras • Integrated chiller, freezer, Future QP Plans at Mesaieed – Total project is in Laffan; laundry, dining and accommodation facilities; and Investments a pre-FEED stage and is planned to be completed in December • Various infrastructure projects at Ras Laffan: West side roads, • Centralized industrial area, in the Petroleum 2022. Khalifa Street Phase II and security gate, west side support new telecom building, security building and ring road and Infrastructure service development, new extension, additional helipad Sector south side roads and grading of and landing strip at muster • Strategic Storage Tanks for corridors. point; the State of Qatar for 2015- • Desalination plant and potable 2030 – QP intends to establish water storage tanks; petroleum products storage facilities in the State of Qatar in • Power supply through 2 x 3 two phases to meet the demand Core, 132kV, submarine sub- during certain disruptions in sea power cables rated for 100 the normal supply of petroleum MW, 100 km each to Halul products. Island from Ras Laffan.
36 37 facilities for injection of North Field The production support activities Crude Oil and gas into the Khuff Reservoir and comprise facilities for power water injection into the main oil receipt and distribution, potable reservoirs of Arab C and Arab D and water distribution, a power Uwainat for pressure maintenance Station, workshop facilities and Natural Gas are also operated on a continuous a communication network in the basis in Dukhan. Dukhan Field. The Dukhan Field has about 330 In addition to the above production/ oil-producing wells, 220 water process facilities, various housing injection wells and 57 gas producers and recreational facilities are and injectors wells. According to the available in Dukhan and clubs, latest well status, the total number catering and security services are of wells in Dukhan is 753, and this also provided to Dukhan residents. includes all production, injection, observation, closed-in, top holes and abandoned wells. Dukhan Operations has storage Onshore Fields and export facilities at Mesaieed Terminal. The Terminal and Export (Dukhan) Department receives stores, schedules and exports crude oil and Main Activities Fahahil North and Fahahil South. Khatiyah South is now a manned naphtha. of Dukhan station. The Diyab manifold at the southern end of the field has no Operations process facilities and its total oil Dukhan is a large oil and gas production is sent to Jaleha station field extending over an area of for processing. Stabilized crude oil is approximately 80 kms by 8 kms and then transported through pipeline to is located about 80 kms to the west Mesaieed Port, which is about 100 of Doha. The Dukhan Field consists km east of Dukhan. of three sectors from north to south The actual annual production of the – Khatiyah, Fahahil, and Jaleha/ Dukhan Field is based on reservoir Diyab. The oil and gas produced management requirements. Other from the field are separated in four production facilities are related main degassing stations, namely to associated gas, non associated Khatiyah North, Khatiyah Main, gas, raw NGL production from Fahahil Main and Jaleha, all of associated gas, Arab D gas cap, and which are continuously manned. recycling plant to produce NGL and The unmanned satellite stations are condensate. In addition to these,
38 39 Marketing and Future Expansion • The attainment of an integrated management systems The development of the other two sectors, Fahahil and Jaleha/Diyab in Development Plans certification for the entire Dukhan, was carried out in stages, Dukhan Operations is scheduled starting with Fahahil in 1954 and Plans • A major project on the in 2013. It has coordinated then Jaleha in 1955. The Dukhan construction of an acid gas with Corporate Quality Power Station was commissioned in The main products for export from removal plant, which would and Management Systems 1958, and the Khuff non-associated the Dukhan Field are crude oil, supply sweet gas to Dukhan Department in implementing gas reservoir was discovered in 1959 condensate, natural gas liquids customers, is currently under the following integrated at an average depth of 10,000 feet. (NGL) and stripped associated gas construction and will be management systems: In 1974, the Fahahil Stripping Plant (SAG). commissioned in 2013. The was also commissioned to recover The following projects are currently project has been awarded • Quality Management System raw NGL from associated gas. In under construction or in progress to Petrofac, which is based (QMS) – ISO 9001:2008, 1976, the first development well in in the area: an acid gas recovery in Sharjah, UAE. Detailed the Khuff reservoir was drilled and • Environmental Management plant, produced water re-injection engineering and procurements eight Khuff wellhead treatment System (EMS) – ISO facilities, the Sweet Fuel Gas have been completed, and plants were commissioned in stages 14001:2004 Project, drilling of new wells and construction is now in progress. from 1978 to 1982. abandonment of unsafe wells. • Occupational Health & Safety • Powered Water Injection Phase To maintain reservoir pressure at Management System (OHSAS) Major civil infrastructure VII will increase the capacity of both Arab C and Arab D reservoirs, – BS OHSAS 18001:2007. development projects are also PS.1, PS.3 and PS.6 to 120,000 powered water injection was presently being implemented in b/d, 120,000 b/d and 150,000 • QP has awarded the Dukhan implemented in stages starting from Dukhan. Some of these projects b/d, respectively. Field Integrated Study (DFIS) 1989, with the last phase completed include the relocation of industrial to ExxonMobil to review the • The Sweet Fuel Gas Project, in 1998. Powered water injection at facilities outside of Dukhan, a various options for enhancing which is currently in construction the Uwainat reservoir was started in hazardous waste storage facility, an production of the remaining in- phase, will supply NF sweet gas 2009. extension building for the Dukhan place oil. The study is looking at as fuel to all Dukhan customers The pressurization of the Khuff Management Building, the Dukhan the following options: namely QP, QNCC, and Gulf reservoir with the surplus North Field Community College, Phases IX • Carbon Dioxide Injection Cement Company (GCC). gas was started from 1992 with and X of the housing projects, landscaping and beautification • The implementation of Phase • Pattern Flooding the commissioning of a compressor projects as well as other civic and II of the Dukhan Physical station in Fahahil area. • Water Alternating Gas recreational projects. Development Plan (DPDP) The Arab D Gas Cap Recycling Injection (WAG) comprises Phase IX and Phase X Plant, which processes 800 mmscfd of the Dukhan Housing Project, The final Enhanced Oil Recovery of Arab D Cap Gas and recovers Major Customers as well as the construction of (EOR) model will be selected 38,000 b/d of stabilized condensate the civic building and supporting after a pilot scale trial of each and 750 b/d of NGL, was The following products from infrastructure, utilities and option. Dukhan are distributed to various commissioned in 1998. The residue services within the Dukhan gas is re-injected back into the same internal and external customers: township. Also included in reservoir. A major project to upgrade • Crude oil is exported through the DPDP is the construction Historical the Arab D plant facilities to recover of infrastructure, utilities and Mesaieed’s Terminal Operations Department and also supplied to services projects in the QP Background on C2+ Raw NGL (about 5600 t/d of NGL) and supply to NGL-4 Project in the QP Refinery in Mesaieed. concession area. Dukhan Field Mesaieed was completed in 2003. • Condensates are sent to the QP • In addition to these, a new Western District Hospital, which Development A major project for a gas lift Refinery in Mesaieed. system to artificially raise the oil for has been renamed as the Cuban The development of the Dukhan • Arab D NGL is supplied to NGL- enhancing production and increasing Hospital, Zikreet, has been Field has taken place in various 4 in Mesaieed. ultimate recovery from the field was completed and inaugurated. The stages. The first well was drilled commissioned in 2003. • FSP Raw NGL is sent to NGL and administration of the hospital in 1939-1940, confirming the NGL 2 in Mesaieed. is provided by Hamad Medical presence of commercial quantities Corporation, and the hospital’s of oil in the area. Further work was • SAG is supplied to the Dukhan technical employees are from suspended due to World War II. Desalination Plant, Qatar Cuba. It has all departments, The development of the Khatiyah National Cement Company specialists and an Emergency sector was then started from 1947 (QNCC), QAPCO and QAFCO via Center, except a primary public onwards and the first oil was QP’s Gas Distribution System. health clinic. exported from the Mesaieed Port on 31 December 1949.
40 41 Major Achievements up to 2012 Offshore Fields 1 Drilling of the first well in Dukhan 1939/40 2 Shipment of the first crude oil from Dukhan 1949 Operations - Major 3 Discovery of non-associated gas in the Khuff reservoir 1959/60 Offshore Fields Achievements 4 Commencement of power water injection in Dukhan reservoirs for pressure maintenance 1989 QP operates two offshore 1. Achieved the lowest safety 5 Commissioning of the Arab D Gas Recycling plant to recover condensate and production stations, PS-2 and PS-3, incident frequency in the last six NGL from Arab D Reservoir Gas Cap 1998 which are located in the northeast years. Also, the result is in the of Qatar’s territorial waters. These top quartile of more than 40 6 Commissioning of NGL4/DKADU to recover 5600 t/d of NGL from Arab D Cap Gas 2003 production stations are located in benchmarked companies in the 7 Commissioning of the gas lift project 2003 the Maydan Mahzam (MM) and Bul oil and gas industry; Hanine (BH) fields. 8 Attainment of ISO 9001:2000 Quality Certification for the entire Dukhan Operations 2004 2. Held the 3rd Offshore Day in Both PS-2 and PS-3 platforms Halul in commemoration of 9 Central Office Building for Dukhan Operations completed 2005 produce crude oil, associated 50 years of Qatar’s offshore 10 Well Integrity Department established to ensure the safe operation of oil and gas wells 2009 gas and condensate. Oil with operations; condensate is piped to Halul Island 11 Completion of a new sewage treatment plant 2009 3. Three new producing wells for storage and export. On the drilled with a potential of 1,300 12 Completion of the Dukhan Umm Bab – Salwa Road 2010 other hand, the gas produced is b/d. In addition, seven producing primarily used to assist in lifting the 13 Installation of new dehydration units at FSP 2011 wells were worked-over/side- oil from the reservoirs, and it is also tracked with a potential of 8,000 14 Mesaieed tank farm upgraded, with the rehabilitation of tanks, construction of new tanks, utilized not only as station and Halul b/d. Three appraisal wells for increase in storage capacity and change in tank farm philosophy; multi-product berth in final fuel gas but also as feedstock to Khuff, Arab C and Arab D were stage of completion 2011 Mesaieed’s NGL facilities. also drilled during the year; 15 Significant reduction in gas flaring achieved 2011 Major Customers 4. Commenced trial/evaluation of 16 Two new fire stations constructed and commissioned at Fahahil and Umm Bab 2011 the FieldWare system for gas lift QP’s major customers for the and production optimization on 17 Completion of the Cuban Hospital in Dukhan 2011 purchase of crude oil, gas and two wellhead jackets; condensate include Mitsubishi 18 Completion of additional offices, warehouses and laboratories 2011 Corporation, ExxonMobil, Total, 5. Four wells with high-risk 19 Commissioning of fiscal meter and meter prover for crude oil, NGL and condensates 2012 Cosmo, Marubeni, Itochu, and compromised integrity were others. restored as part of the above work-over programs;
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