From Qatar to the World - Committed to Excellence

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From Qatar to the World - Committed to Excellence
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Committed to Excellence:
From Qatar to the World
From Qatar to the World - Committed to Excellence
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                                     In the Name of Allah,
                              the Most Gracious, the Most Merciful

    Printed in October 2013
From Qatar to the World - Committed to Excellence
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                His Highness
    Sheikh Tamim Bin Hamad Al-Thani
          Emir of the State of Qatar
From Qatar to the World - Committed to Excellence
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    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
From Qatar to the World - Committed to Excellence
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    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
From Qatar to the World - Committed to Excellence
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    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.
From Qatar to the World - Committed to Excellence
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     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.
From Qatar to the World - Committed to Excellence
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     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.
From Qatar to the World - Committed to Excellence
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     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
From Qatar to the World - Committed to Excellence
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                                                                                                                                                                                                      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%
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                                                                                              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%
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                                                                                                                     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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