Oil & Gas Report

Qatar Oil & Gas report December 2012 2

Acknowledgements

Special thanks to Florence Verzelen and Majda Soussi from GDF SUEZ for their information and contacts provided,

to Christopher Evans from Qatargas, Venus Mahmoud Khudir from Dolphin Energy, Mohamed Ahmed Mohamed Al-Rashid from Qatar Petroleum for their contribution,

and to all the companies supporting the production of this report. 3 contents 5 Taking the sustainable lead 6 The new promised land 7 better, faster, harder, stronger 8 G as- to-liquids: the pioneer and the giant 8 s fa t, not furious 10 From gas to crops 10 a knowledge-based economy 11 for better, for worse, for richer, for poorer, in sickness and in health 12 Interconnection power 12 There’s time enough, but none to spare 14 We are the champions 14 Now hiring, skilled, fast, and smart-learning manpower 14 Not in the same basket INTERVIEWS 16 Interview with H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy & Industry - State of QA- TAR, Chairman & Acting Managing Director of Qatar Petroleum 18 Interview with Mr. Issa Al-Ghanim Governor of Qatar for OPEC 20 Interview with Khalid bin Khalifa Al-Thani, CEO of Qatargas 22 Interview with Wael Sawan - Executive Vice President Qatar Shell GTL Ltd 24 Interview with Adel Ahmed Albuainain - General Manager Dolphin Energy Qatar 26 Interview with Bart Cahir President and General Manager, ExxonMobil Qatar 28 Interview with Florence Verzelen, General Manager, GDF Suez Qatar 30 Interview with Lewis Affleck - Managing Director Maersk Oil Qatar 32 Interview with Paul Navratil Energy, Utilities and Mining Leader, Peter Gordon, Senior Manager PwC Middle East 34 Interview with M. Finbarr Sexton Partner – Ernst & Young Qatar 36 Interview with Dr. Mazen O. Hasna - Dean College of Engineering at Qatar University

This report was prepared by Focus Reports Project Director: Christophe Bonami. Editorial Coordinator & Journalist: Nala Nouraoui. Chief Editor: Eric Watkins

Copyright All rights reserved. No part of this publication maybe reproduced in any form or by any means, whether electronic, mechanical or otherwise including photocopying, recording or any information storage or retrieval system without prior written consent of Focus Reports. While every attempt is made to ensure the accuracy of the information contained in this report, neither Focus Reports nor the authors accept any liabilities for errors and omissions. Opinions expressed in this report are not necessarily those of the authors. 4 advertisement

QATAR TAKING THE SUSTAINABLE LEAD

oha in summer. The mercury is flirting with 50 degrees Celsius, and sand dunes surround tall skyscrapers. When looking at the sparse Dvegetation of the peninsula, one can seriously wonder if Qatar is actually located on one of the Earth’s richest locations in terms of natural resources. Qatar was blessed by the discovery of abundant natural gas resources after its independence in 1971, and quickly switched from a pearl-fishing economy to being the rising star of the Gulf, soon becoming one of the smallest, but richest countries on earth. Located between Iran and Saudi Arabia, Qatar has managed to create one of the region’s most stable business environments, attracting the best partners. While some people will think the rise of this tiny state is presumptuous , Qatar boasts the world’s highest GDP per capita and has achieved the fastest economic growth worldwide.

This sponsored supplement was produced by Focus Reports. Project Director: Christophe Bonami. Editorial Ras Laffan Industrial City, Coordinator & Journalist: Nala Nouraoui. Editor: Eric Watkins. Report Publisher: Diana Viola. For exclusive Courtesy of QATARGAS interviews and more info, please log onto www.energy.focusreports.net or write to [email protected]

www.ogfj.com • Oil & Gas Financial Journal December 2012 energy.focusreports.net 45

CarSas_OGFJ_1212 1 11/12/12 2:09 PM 5 advertisement

QATAR TAKING THE SUSTAINABLE LEAD

www.ogfj.com • Oil & Gas Financial Journal December 2012 energy.focusreports.net 45 6

it reached $100 billion, thanks to develop- charismatic QatarGas CEO Khalid bin Khalifa Al-Thani. For him, what matters most is that,

ment of the country’s world-class oil and “Qatargas becomes the world’s premier LNG Company by 2015, when we will be known Ras Laffan Industrial City, Courtesy of QATARGAS gas industry. State-owned QP, which holds for our people, innovation, operating excellence, environmental responsibility and corporate

51% of every joint venture in the country, has social citizenship.”

attracted the most prestigious international Qatar also owes its prosperity to the contribution of RasGas, another successful national

oil companies (IOCs) as partners, enabling company. Established in 1993, RasGas has been supplying the local market with some 2 bil-

the country to achieve the fastest success lion cubic feet per day of gas or about two-thirds of Qatar’s domestic demand. That figure

story in the history of natural gas production

and become the world’s leading exporter of

natural gas with 77 million tonnes per annum

(tpa) in 2011.

Better, Faster, Harder, Stronger “In the Gulf, economic growth and change have always come from the oil and gas industry. It is the incubator, not only for '&@1"201 2!16'2) the oil and gas economy but also for the ()')%& national knowledge economy,” said Paul 2!1'2)0 1'' Navratil, Energy, Utilities and Mining Leader for PricewaterhouseCoopers (PwC) Middle

East. Knowledge has certainly been the But one wonders if Qatar will manage to plan The new promised land driver of the world-class ambitions of the a sustainable and long-term growth without The fast pace at which Qatar achieved its enviable performances and country, as the technology existing in Qatar being infatuated by its admirable success in the stood out as a world class LNG producer is astounding. But that fast is one of the most advanced in the world. field of energy. Qatar already is trying to miti- pace is not a coincidence, according to His Excellency Dr. Moham- ExxonMobil, the country’s largest American gate the collateral risks of its booming natural med Bin Saleh Al-Sada, Minister of Energy and Industry, Chairman investor, has a privileged role with Qatar gas industry by implementing new measures and Acting Managing Director of Qatar Petroleum (QP). “Qatar’s Petroleum and the State of Qatar in the H.E. Dr. Mohamed Bin that are part of Qatar Vision 2030, a vast vision- Saleh Al-Sada, Minister LNG journey to become the largest exporter of the product in the fast growth of the country, participating of Energy & Industry of ary program imagined by the Emir of Qatar, His Qatar, Chairman and Act- world in a short span of time is a saga of transformation of a powerful in 12 of Qatar’s 14 LNG trains. Qatargas ing Managing Director of Highness Sheikh Hamad bin Khalifa Al Thani. Qatar Petroleum vision into reality,” he said. 2, the largest integrated LNG project of

Qatar Vision 2030 “envisages a vibrant and prosperous country in which According to the Minister, Qatar managed to utilize its bountiful Qatar, in which ExxonMobil was the major there is economic and social justice for all, and in which nature and man hydrocarbon resources through sustainable investment in the energy shareholder, required $12 billion in financ- are in harmony. We need to galvanize our collective energies and direct sector and helped raise the global standards of ing, 52 lenders and some 50,000 contrac- them toward these aspirations.“ said the country’s ruler. The main pillars the liquefied natural gas (LNG) market. “Today, tors. Qatargas was established in 1984 and directly related to the energy industry are managed growth and uncon- we can say with confidence that we have taken stands as a pioneer in the LNG industry in trolled expansion; the size and the quality of the expatriate labor force; the the LNG business to an entirely new level and Qatar. It is now the largest LNG producing selected path of development; economic growth; social development; it is up to others to emulate our model,” Al- company on earth, supplying long-term cus- and environmental management. Those measures will require substantial Sada said. In 2000, the energy sector contrib- tomers worldwide. Khalid bin Khalifa Al-Thani, change, and will shape the oil and gas industry of tomorrow in Qatar. uted $11 billion to Qatar’s GDP, while in 2010 CEO of QATARGAS It is certainly a proud achievement for the

CarErn_OGFJ_1212 1 11/9/12 2:40 PM 46 energy.focusreports.net December 2012 Oil & Gas Financial Journal • www.ogfj.com www.ogfj.com • Oil & Gas Financial Journal December 2012 energy.focusreports.net 47 7

it reached $100 billion, thanks to develop- charismatic QatarGas CEO Khalid bin Khalifa Al-Thani. For him, what matters most is that,

51% of every joint venture in the country, has social citizenship.”

attracted the most prestigious international Qatar also owes its prosperity to the contribution of RasGas, another successful national

oil companies (IOCs) as partners, enabling company. Established in 1993, RasGas has been supplying the local market with some 2 bil-

the country to achieve the fastest success lion cubic feet per day of gas or about two-thirds of Qatar’s domestic demand. That figure

story in the history of natural gas production

and become the world’s leading exporter of

natural gas with 77 million tonnes per annum

(tpa) in 2011.

GAS-TO-LIQUIDS: THE PIONEER AND THE GIANT Driven by innovation. That’s how officials of South Africa’s cutting much of our success is directly due to our good cooperation and edge Suid Afrikaanse Steenkool en Olie (Sasol) like to describe strong relations with QP. their firm. That’s especially true of Marjo Louw, the President of Sasol Qatar, which jointly owns ORYX GTL with Qatar Petroleum OGJF: Given the success of ORYX GTL, do you see it as a (QP). Based in Qatar’s Ras Laffan Industrial City, ORYX GTL uses model that you can apply to other GTL facilities abroad? Sasol’s innovative gas to liquids (GTL) technology to convert natu- Louw: We believe it is our global GTL flagship and we have ral gas into liquid fuel products. Marjo Louw comments on the started developing a similar GTL plant in Nigeria with confidence. success of Sasol’s operations: We are working on a similar project in Uzbekistan and we are looking at Canada and the USA. Our success in Qatar helps our OGFJ: QP and Sasol launched ORYX GTL, which is Qatar’s company with our future vision and with implementing strategies. first-ever GTL project. What were your main challenges and It acts as an ambassador of our vision and for what we can do successes in this project? elsewhere.

Louw: We faced many challenges and we OGJF: What’s the future of GTL in Qatar, and how is Sasol had to mobilize a large number of skilled contributing to it? personnel. The plant has now been running for five years and there are up to 40 Louw: The future for GTL is starting to shine. Sasol’s technology nationalities working there. The safety GAS-TO-LIQUIDS:was uniqueTHE toPIONEER Qatar and to theAND world. THE It was inGIANT some ways experi- record is absolutely world-class; for the Driven by innovation. That’smental, how butofficials the strong of South vision Africa’s and strategiccutting muchforesight of our of H.H.success the is directly due to our good cooperation and last few months it has been operating edge Suid Afrikaanse SteenkoolEmir and enH.E. Olie Abdullah (Sasol) Binlike Hamad to describe Al Attiyah, strong former relations Minister with of QP. with reportable case rates of 0.00, which their firm. That’s especiallyEnergy true and of Industry,Marjo Louw, and thecurrently President supported of by H.E. Dr. Al-Sada, Marjo Louw, President, is world-class. The final results show that Sasol Qatar, which jointlyMinister owns ORYX of Energy GTL with and Qatar Industry, Petroleum established OGJF: Qatar Given as the the GTL success of ORYX GTL, do you see it as a Sasol Qatar everything has been well executed, and (QP). Based in Qatar’s Rascapital Laffan of Industrialthe world City,with ORYXOryx GTL. GTL .uses model that you can apply to other GTL facilities abroad? Sasol’s innovative gas to liquids (GTL) technology to convert natu- Louw: We believe it is our global GTL flagship and we have ral gas into liquid fuel products. Marjo Louw comments on the started developing a similar GTL plant in Nigeria with confidence. success of Sasol’s operations: We are working on a similar project in Uzbekistan and we are will soon rise on completion of the giant Barzan project, which will Qatar does hold the world’s third-largest gas reserves, but it is deter- looking at Canada and the USA. Our success in Qatar helps our be devoted entirely to the domestic market. OGFJ: QP and Sasol launchedmined to ORYXuse them GTL, reasonably. which is ItQatar’s wants to usecompany them withat a paceour future that vision and with implementing strategies. After ORYX GTL’s bright success, the reputationfirst-ever of this newGTL Eldoproject.- can What be slowedwere yourdown mainor put challenges on hold, regardless and It acts of investments as an ambassador made of our vision and for what we can do successes in this project? elsewhere. rado of GTL spread rapidly. Royal Dutch Shell, which already had by IOCs at the time of gas discovery. The big question facing com-

launched a GTL project at Bintulu in Malaysia Louw:in 1993, We decided faced many to challengespanies that and have we already invested or those OGJF:wanting What’s to do so,the isfuture to of GTL in Qatar, and how is Sasol had to mobilize a large number of skilled contributing to it? continue the GTL adventure with a giant step forward: the Pearl GTL know whether the moratorium will be lifted in 2014 or extended by personnel. The plant has now been run- project. Inaugurated in late 2011, Pearl GTL makesning forShell five the years single and there are up to 40 Louw: The future for GTL is starting to shine. Sasol’s technology largest foreign investor in Qatar, with up to $21nationalities billion. “The working signifi- there. The safety was unique to Qatar and to the world. It was in some ways experi- record is absolutely world-class; for the mental, but the strong vision and strategic foresight of H.H. the cance of Qatar for us is the evolution from no operationslast few months in 2002 itto has been operating Emir and H.E. Abdullah Bin Hamad Al Attiyah, former Minister of making it one of the highest value countries forwith the reportable Shell group case a rates of 0.00, which Energy and Industry, and currently supported by H.E. Dr. Al-Sada, Marjo Louw, President, is world-class. The final results show that Minister of Energy and Industry, established Qatar as the GTL decade later, with roughly 10% of the overall value for the group,” Sasol Qatar everything has been well executed, and capital of the world with Oryx GTL. explains Qatar Shell Chairman Wael Sawan.

Fast, not furious will soon rise on completion of the giant Barzan project, which will Qatar does hold the world’s third-largest gas reserves, but it is deter- be devoted entirely to the domestic market. mined to use them reasonably. It wants to use them at a pace that While many countries could be dazed by the abundance of resources, After ORYX GTL’s bright success, the reputation of this new Eldo- can be slowed down or put on hold, regardless of investments made the outstanding production performances and the investment in rado of GTL spread rapidly. Royal Dutch Shell, which already had by IOCs at the time of gas discovery. The big question facing com- cutting-edge technology, and feel the urge to utilize the resources launched a GTL project at Bintulu in Malaysia in 1993, decided to panies that have already invested or those wanting to do so, is to as fast as possible, Qatar chose a more prudent approach. Indeed, continue the GTL adventure with a giant step forward: the Pearl GTL know whether the moratorium will be lifted in 2014 or extended by the country decided in 2005 to establish a moratorium on the North Offshore platform, courtesy of TOTAL E&P QATAR project. Inaugurated in late 2011, Pearl GTL makes Shell the single Field, fearing that faster production could damage the reservoir. largest foreign investor in Qatar, with up to $21 billion. “The signifi-

cance of Qatar for us is the evolution from no operations in 2002 to

48 energy.focusreports.netmaking it one of theDecember highest value 2012 countries Oil & for Gas the FinancialShell group Journal a • www.ogfj.com

decade later, with roughly 10% of the overall value for the group,”

explains Qatar Shell Chairman Wael Sawan. CarChe_OGFJ_1212 1 11/9/1211/9/12 2:252:25 PMPM

Fast, not furious While many countries could be dazed by the abundance of resources,

the outstanding production performances and the investment in

cutting-edge technology, and feel the urge to utilize the resources

as fast as possible, Qatar chose a more prudent approach. Indeed,

the country decided in 2005 to establish a moratorium on the North Offshore platform, courtesy of TOTAL E&P QATAR Field, fearing that faster production could damage the reservoir.

48 energy.focusreports.net December 2012 Oil & Gas Financial Journal • www.ogfj.com

CarChe_OGFJ_1212 1 11/9/12 2:25 PM 9

will soon rise on completion of the giant Barzan project, which will Qatar does hold the world’s third-largest gas reserves, but it is deter- be devoted entirely to the domestic market. mined to use them reasonably. It wants to use them at a pace that

After ORYX GTL’s bright success, the reputation of this new Eldo- can be slowed down or put on hold, regardless of investments made rado of GTL spread rapidly. Royal Dutch Shell, which already had by IOCs at the time of gas discovery. The big question facing com- launched a GTL project at Bintulu in Malaysia in 1993, decided to panies that have already invested or those wanting to do so, is to continue the GTL adventure with a giant step forward: the Pearl GTL know whether the moratorium will be lifted in 2014 or extended by project. Inaugurated in late 2011, Pearl GTL makes Shell the single largest foreign investor in Qatar, with up to $21 billion. “The significance of Qatar for us is the evolution from no operations in 2002 to making it one of the highest value countries for the Shell group a decade later, with roughly 10% of the overall value for the group,” explains Qatar Shell Chairman Wael Sawan.

Fast, not furious While many countries could be dazed by the abundance of resources, the outstanding production performances and the investment in cutting-edge technology, and feel the urge to utilize the resources as fast as possible, Qatar chose a more prudent approach. Indeed, the country decided in 2005 to establish a moratorium on the North Offshore platform, courtesy of TOTAL E&P QATAR Field, fearing that faster production could damage the reservoir.

48 energy.focusreports.net December 2012 Oil & Gas Financial Journal • www.ogfj.com

CarChe_OGFJ_1212 1 11/9/1211/9/12 2:252:25 PMPM 10

FROM GAS TO CROPS ment. This information will help us select the one million tpa of LNG, under a long-term contract with Tokyo Elec- Khalifa Abdullah Al-Sowaidi, CEO of Qafco, Qatar’s leading player Al-Sowaidi: We are a large-scale company, operating a huge best technologies to use in this environment tric Power Company (TEPCO). The agreement came as a response to in the fertilizer industry, tells Focus Reports about the opportuni- plant with less manpower. With proximity to the sea, Qafco being going forward,” said Attalah. And Chevron Japan’s need for LNG to compensate for the loss of the 50 or so nuclear ties for Qatar to diversify its economy. located just on the shore and having its dedicated jetties, we do not do double handling of our products. So, it makes the quality is being visionary, too. Qatar has natural gas, plants put on hold after the Fukushima Daiichi tragedy in March 2011. FOCUS REPORTS: Qafco was the first joint venture in Qatar much higher than our competitors’. but it also has another natural and unlimited In the context of economic uncertainty in Europe and the self-suffi- and acted as a pioneer for joint ventures. Can you tell us about resource: the sun. ciency of North American markets due to shale gas, Asia appears as the the success story of a company that started as an SME? FOCUS REPORTS: How would you define Qafco’s contribution Finbarr Sexton, Partner, in diversifying the economy of Qatar? The CSEE at Qatar Science and Technol- partner of choice for the future of Qatar. Still, according to Sexton, there Ernst & Young Qatar Al-Sowaidi: After Qafco VI, our sixth urea plant, we will have 5.6 million tons of urea Al-Sowaidi: We do a lot of work that involves many local compa- ogy Park will aim at educating people on are a few concerns over competition with Australia, which “probably represents the biggest ready for export. That makes us the num- nies like mechanical SME’s. We contribute to the development simple behavioral changes at home to cut ber one exporter in the world and will con- of the downstream sector and we help increase export earnings. CO2 emissions, and it will research compo- tribute to 12.5% of the world-traded urea. It also puts Qatar as the fourth country in FOCUS REPORTS: How do you forecast the future of the fertil- nents on efficient lighting technology. terms of production of urea, after China, izer industry?

India, and Indonesia. It also makes Qafco Khalifa Abdulla Al- the largest single fertilizer producer in the SowaIdi, CEO, QAFCO Al-Sowaidi: The existence of mineral fertilizer today allows people For better, for worse, world. worldwide to be able to eat. Today, more than 60% of the total for richer, for poorer, in food production depends on mineral fertilizers. Fertilizers have FOCUS REPORTS: How do you assess your strengths com- created all this food for the last century and that has saved the sickness and in health pared to those of your competitors? world from famine. A lot of people mistake us for a pesticide pro- Finbarr Sexton, Energy Partner at Ernst & ducer. But we do not harm the planet. We feed the planet. Young Qatar, shared his expertise on Qatar’s

oil and gas Industry and on Qatar’s strate-

gic position, especially with Asia and Japan, the government, putting on hold all operations and future develop- ensuring long-term growth. “With Qatar’s ments. The gas Eldorado is currently reduced to very few upstream reserves, Japan identified back in the 90s developments, allowing room for potential niches such as enhanced the potential that Qatar had in being a oil recovery but leaving most companies disillusioned about the pos- reliable supplier. It was easy to conclude sibility of rapid development. 25-year contracts, knowing that it could eas-

Some choose to listen to the voice of wisdom to grin and bear ily be extended to a 200-year relationship. it, such as Stéphane Michel, Managing Director of Total: “The mes- The security of supply is amongst the key sage about Qatar is to think long-term and not to take this transition attractions that Qatar holds in the eyes of period as a slow-down, Qatar has the biggest gas field in the world Japan and South Korea,” Sexton said. and when you are a contractor, it is during those phases of transition Keiichi Yoneyama, General Manager of Nakilat flagship Mozah Courtesy of NAKILAT that you build your future,” said Michel. Chubu Electric Power, said that Qatar and

research on renewable energy. Chevron’s current main activity is Japan were like a married couple, always A knowledge-based economy around energy efficiency and solar technology research. The com- together, for better or worse. Indeed, Qatar Some oil and gas companies decide to make the best use of their pany signed an agreement in 2009 to create the Center for Sustain- has been present when Japan most needed time left by the moratorium to heavily invest in research and devel- able Energy Efficiency (CSEE) located at Qatar Science and Technol- it. Qatar was among the first countries to opment (R&D). Carl Attalah, President of Chevron Qatar Ltd., says ogy Park, the country’s hub for research. support Japan after the devastating 2011 his firm is, “taking the long view on Qatar, staying in the course for “Our solar and energy efficiency projects are part of a Corporate earthquake, donating $100 million on behalf potential future opportunities once the Moratorium is lifted.” Social Responsibility (CSR) project, aligned with His Highness the of the government. As a sign of goodwill

Chevron symbolizes the relationship companies are eager to have Emir’s vision 2030. The Solar Test Facility aims to test different com- among bilateral trade relations, Qatargas I with the state of Qatar, helping the country shape its future through mercially available photovoltaic technologies in the Qatar environ- signed an agreement in June 2012 to deliver

50 energy.focusreports.net December 2012 Oil & Gas Financial Journal • www.ogfj.com www.ogfj.com • Oil & Gas Financial JournalCarKah_OGFJ_1212 December 1 2012 energy.focusreports.net 11/12/12 1:5051 PM 11 ment. This information will help us select the one million tpa of LNG, under a long-term contract with Tokyo Elec- best technologies to use in this environment tric Power Company (TEPCO). The agreement came as a response to going forward,” said Attalah. And Chevron Japan’s need for LNG to compensate for the loss of the 50 or so nuclear is being visionary, too. Qatar has natural gas, plants put on hold after the Fukushima Daiichi tragedy in March 2011. but it also has another natural and unlimited In the context of economic uncertainty in Europe and the self-suffi- resource: the sun. ciency of North American markets due to shale gas, Asia appears as the Finbarr Sexton, Partner, The CSEE at Qatar Science and Technol- partner of choice for the future of Qatar. Still, according to Sexton, there Ernst & Young Qatar ogy Park will aim at educating people on are a few concerns over competition with Australia, which “probably represents the biggest simple behavioral changes at home to cut

CO2 emissions, and it will research compo- nents on efficient lighting technology.

For better, for worse, for richer, for poorer, in sickness and in health Finbarr Sexton, Energy Partner at Ernst &

Young Qatar, shared his expertise on Qatar’s oil and gas Industry and on Qatar’s strategic position, especially with Asia and Japan, ensuring long-term growth. “With Qatar’s reserves, Japan identified back in the 90s the potential that Qatar had in being a reliable supplier. It was easy to conclude

25-year contracts, knowing that it could easily be extended to a 200-year relationship.

The security of supply is amongst the key attractions that Qatar holds in the eyes of

Japan and South Korea,” Sexton said.

Keiichi Yoneyama, General Manager of

Chubu Electric Power, said that Qatar and

Japan were like a married couple, always together, for better or worse. Indeed, Qatar has been present when Japan most needed it. Qatar was among the first countries to support Japan after the devastating 2011 earthquake, donating $100 million on behalf of the government. As a sign of goodwill among bilateral trade relations, Qatargas I signed an agreement in June 2012 to deliver

www.ogfj.com • Oil & Gas Financial JournalCarKah_OGFJ_1212 December 1 2012 energy.focusreports.net 11/12/12 1:5051 PM 12

INTERCONNECTION POWER Essa Bin Hillal Al Kuwari, President of Qatar General Electricity Qatar being solar. There is another initiative to cover one of our and Water Company (KAHRAMAA), gives his insight on energy mega reservoirs with photovoltaic panels to produce electricity. efficiency and regional integration. OGFJ: What are you doing at your level to educate people on OGFJ: What were the main difficulties inherent to Qatar’s fast how to consume more responsibly? growth that you had to face? Al Kuwari: We have launched a campaign called Tarsheed, aiming Al Kuwari: The booming growth of Qatar to reduce consumption of water and electricity. There are two over the last five years was a challenge for goals: reducing the consumption of electricity by 20% per capita us. All real estate or infrastructure projects and water consumption by 35% per capita. need electricity and water. Not a single project can start without them. But we OGFJ: What is the role that KAHRAMAA plays in the coopera- succeeded. tion with Gulf Countries Council (GCC) countries?

OGFJ: What is KAHRAMAA doing at its Essa Bin Hillal Al Al Kuwari: Interconnection in water and electricity is very impor- operational level towards energy effi- Kuwari, President, tant and it will lead to something even bigger in terms of regional ciency and reducing its impact on the KAHRAMAA integration. This is the beauty of it: we are now interconnected environment? with the five GCC countries and Oman will come soon. Such interconnection has proved to be successful and all countries Al Kuwari: We are trying with all our stakeholders to be a pioneer have enjoyed the benefits of it. in renewable energies, the most economic renewable source in

natural resources, The Qatari state and many companies are taking There's time enough, but none to spare. concrete measures to reduce their impact on the environment. If Qatar has built the backbone of its LNG industry with technology, Although the bor- investment and research, the country must ready itself to exploit its der between envi- resources in the most sustainable way possible, taking into account ronmental CSR and human and environmental factors that are under the risk of being green-washing can pushed aside in the face of such brisk growth. Qatar holds the first sometimes seem place for three different rankings. One is outstanding: holding the unclear, the envi- world’s highest GDP per capita. Two rankings are less glorious: the ronment appears to highest pollution rate per capita and the second highest power be a true concern consumption rate in the region. In terms of actual volume of CO2 for companies such emission, Qatar contributed about 0.23% of global CO2 emissions as Dolphin Energy, and ranked 47th among UN members. However, the ratio per capita the Emirati project appears very high, given its small population of only 200,000 Qatari that produces and nationals – out of 1.7 million inhabitants. The calculation also seems processes natural to be unfair as Qatar produces natural gas and transforms it into gas from Qatar's off-

LNG, an industrial process that emits a lot of CO2. As natural gas is shore North Field. the cleanest fossil fuel, its usage enables many countries to reduce Dolphin plotted a Engineers at work, Courtesy of KAHRAMAA

52 energy.focusreports.net December 2012 Oil & Gas Financial Journal • www.ogfj.com 13

threat to the Qatari LNG industry, being much closer to the Far East their CO2 emissions, while production emissions are still registered markets than Qatar. So there are inherent challenges with Australia in Qatar. bringing on supply.” Aware of the risks for the environment of such a fast-pace use of natural resources, The Qatari state and many companies are taking There's time enough, but none to spare. concrete measures to reduce their impact on the environment. If Qatar has built the backbone of its LNG industry with technology, Although the bor- investment and research, the country must ready itself to exploit its der between envi- resources in the most sustainable way possible, taking into account ronmental CSR and human and environmental factors that are under the risk of being green-washing can pushed aside in the face of such brisk growth. Qatar holds the first sometimes seem place for three different rankings. One is outstanding: holding the unclear, the envi- world’s highest GDP per capita. Two rankings are less glorious: the ronment appears to highest pollution rate per capita and the second highest power be a true concern consumption rate in the region. In terms of actual volume of CO2 for companies such emission, Qatar contributed about 0.23% of global CO2 emissions as Dolphin Energy, and ranked 47th among UN members. However, the ratio per capita the Emirati project appears very high, given its small population of only 200,000 Qatari that produces and nationals – out of 1.7 million inhabitants. The calculation also seems processes natural to be unfair as Qatar produces natural gas and transforms it into gas from Qatar's off-

52 energy.focusreports.net December 2012 Oil & Gas Financial Journal • www.ogfj.com

CarQaf_OGFJ_1212 1 11/13/12 10:00 AM 14 subsea pipeline route to the United Arab Emirates and Oman that avoided important turtle breeding grounds and protected marine WE ARE THE CHAMPIONS In 2022, Qatar will once again be habitats. Dolphin also initiated a flare reduction program to help under the spotlight, as it will be reduce emissions. hosting the 2022 Football World Cup. Meanwhile, a colossal amount Qatar is determined to show the world it is not a careless polluter of work needs to be done to meet by actually positioning itself under the spotlight for environment- the deadlines and requirements for construction of stadiums, hotels, and related events. Qatar is hosting COP 18, the UN conference on cli- railways. Qatar won the bid thanks mate change in December 2012. That decision is considered quite to its commitment to organize a carbon neutral world cup. For Carl Carl Atallah, President ironic by green activists, who accuse Qatar of trying to buy its way to Chevron Qatar Atallah of Chevron, it will be a good environmental respectability . But the act is symbolic of the efforts opportunity to implement solar pan- made by the government to improve the situation by taking action. els, but he explains that “The World Cup is a summer event, therefore, achieving a carbon neutral World Cup is a big chal- The major priority will then be to raise awareness among the local lenge,” bearing in mind that the temperatures might be up to population, especially regarding power consumption, as Florence 50 degrees, requiring air-conditioning in the stadiums. Essa Hilal Al-Kuwari of KAHRAAMA foresees the challenges Verzelen, General Manager of GDF SUEZ Qatar explains. “Energy but is ready to cope with them: “ It is a huge and hot issue, if efficiency is Qatar’s major issue,” said Verzelen. “Qatar has the sec- not the hottest. We don’t foresee any problems on the genera- ond highest power consumption rate in the region, mainly because tion and transmission side and we need to make sure that the distribution network will be able to support such a big event. of cheap electricity. Reducing the consumption will require strong We will be ready!” political will to change local habits”.

contributing substantially to this initiative due to the approaching Now hiring: skilled, smart and deadline of having half of their staff composed of nationals by 2030, fast-learning manpower and they are willing to take action to solve the human resources chal- “Having a qualified, motivated, high performing workforce is per- lenge. But organic changes in human resources should always come haps this industry’s biggest challenge. It’s a regional problem, which from the root: education. Qatar University and Texas A&M University

Qatar is experiencing, given the scarcity of national resource,” said have been very dynamic implementing measures and training ses-

Peter Gordon, Senior Manager at PwC, about the human resources sions together with companies. challenge. While technology and facilities can be implemented at a fast pace, human resources are a much slower issue that Qatar had Not in the same basket left behind until Qatarization was included in Qatar Vision 2030, a Qatar seems always to want to take action at a speed that is often measure aimed at reaching a target of 50% of Qatari nationals work- noted: investing abroad through the acquisition of football clubs, ing in the energy sector. As companies might be craving for exper- Italian luxury brands, historical buildings in London and Paris, or tise to harmonize with the pace of the booming industry demanding international bids for sports. But if the country is so eager to expand know-how, the gestation period between advertising for a position its presence abroad and strategically use its petrodollars, it is also to getting the right person can take up to a year, having an effect on because the State of Qatar realizes the need to diversify its economy day-to-day operations, compelling companies to implement long- away from reliance on the oil and gas industry. The rapidity with term human resources planning ahead of time. As Saudi Arabia and which Qatar is investing is just a symbol of its immediate willing- the United Arab Emirates are facing the same needs, Qatar needs ness to continue its path to reach the leading position in global LNG to imagine a strategy to raise awareness and empowerment among production and to plan its long-term future, by attracting the right their local population, to train them as fast as possible to turn them international partners and creating trade relationships with the most into the next energy leaders of tomorrow. Oil and gas companies are reliable markets. Prudently fast. Eager, but patient.

54 energy.focusreports.net December 2012 Oil & Gas Financial Journal • www.ogfj.com 15

For exclusive ITVs and more insights, log on to energy.focusreports.net 16 Interview with H.E. Dr. Mohammed bin Saleh Al-Sada:

Interview with: H .E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy & Industry - State of QATAR, Chairman & Acting Managing Director of Qatar Petroleum

Focus Reports: What do you consider the most economic sectors in the State of Qatar, includ- salient events since you were appointed Minister ing gas for the power sector and the various of Energy & Industry , and what are the strategic downstream ventures. pillars that will define Qatar’s energy industry for Our medium-term energy horizon also the medium term? includes exploration of investment opportuni- H.E. Dr. Mohammed bin Saleh Al-Sada: The wheel ties in strategically viable energy projects of economic progress of Qatar has been in around the world through our international motion since the early 1930s but its global eco- arm, Qatar Petroleum International. nomic ascendency over the past two decades has been driven by the enlightened leadership FR: Following H.H. the Emir’s vision, in just 14 of His Highness, the Emir of the State of years, Qatar has reached an LNG output capabil- Qatar, Sheikh Hamad bin Khalifa Al Thani. ity of 77 million tonnes annually, ahead of players Qatar’s bountiful hydrocarbon resources have like Algeria, Malaysia and Indonesia. What do you been utilized in a sustainable manner through believe has been the impact in the world energy judicious investment in the energy sector con- landscape of the rise of a “fast new player” such tributing to all-round progress and prosperity. as Qatar? What do you feel are your responsibili- This process is ongoing. ties as such – especially regarding pricing and Some of the major projects that have been security of supply? completed during my tenure as the Minister H.E. Dr. Mohammed bin Saleh Al-Sada: Qatar’s of Energy & Industry are the ‘Pearl’ Gas to LNG journey to become the largest exporter Liquids (GTL) Project, the Ras Girtas Power of the product in the world in a short span of Company, and the Qafco-5 fertilizer project. time is a saga of transformation of a powerful Besides these, QAFCO-6 is due for inaugura- vision into reality. Adopting prudent business tion by the end of this year. All these projects policies and welcoming foreign investment, have redefined the Qatar energy industry in Qatar’s wise leadership helped direct more the short-to-medium term. than $120 billion to develop about five million We are also continuing our efforts to barrels of oil equivalent per day of new energy explore and develop new oil and gas fields, supplies for the global market. The rest is his- whilst enhancing the productivity of the exist- tory. It catapulted Qatar ahead of others as the ing oil fields. The energy industry led by QP leading supplier of LNG to the world. will continue to meet the increasing demand While the massive expansion of our LNG for energy and ensure the availability of business was taking place, we were mindful of hydrocarbon products needed by the various the emergence of the changing market dynam-

H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy & Industry - State of QATAR, Chairman & Acting Managing Director of Qatar Petroleum 17

ics. It was important for us to enhance our region and its financial well-being. In the case capabilities to adequately respond to these of Qatar, which has prospered by utilizing its changes and assure security of supplies to the hydrocarbon resources, the challenge is to sus- buyers in the global market. tain its prosperity over the long term by wise We achieved these utilizing innovative management of exhaustible resources to technologies to scale up the LNG trains and ensure optimum utilization of these resources develop the world’s largest LNG carriers. We and to create a balance between reserves and also developed a new LNG business model, production, between economic diversification which allowed Qatar to become a truly global and the depletion of non-renewable hydrocar- player in the industry, by transacting business bon resources. These resources can be lever- both on oil and gas market-based pricing. Pur- aged to make sustainable development a real- suing this model, QP could sell LNG in every ity for its people. Converting these natural region of the world, adjusting its sales mix in- assets into financial wealth provides the line with the market requirements. Today, we means to invest in world-class infrastructure, can say with confidence that we have taken the LNG business to an entirely new level, and to build efficient delivery mechanisms for pub- it is up to others to emulate our model. lic services, to create a highly skilled and productive labor force, and to support the devel- FR: Qatar has heavily invested in added value cre- opment of entrepreneurship and innovation ation with QP’s affiliated petrochemical compa- capabilities. These achievements would in turn nies (QAFCO, QAPCO, QAFAC, QChem) operat- provide a broader platform for the diversifica- ing in Mesaieed industrial City. What are the tion of Qatar’s economy and its positioning as results so far? a regional hub for knowledge and for high- H.E. Dr. Mohammed bin Saleh Al-Sada: Qatar’s value industrial and service activities. industrial diversification program started way We are embarking on an economic diversi- back in 1969 when it embarked on adding fication in line with Qatar National Vision value to its natural gas resources with the 2030 – a diversified economy that gradually establishment of QAFCO, the Qatar Fertilizer reduces its dependence on the hydrocarbons Company. It was also the advent of Qatar’s pet- industries, enhances the role of the private rochemical industry. sector and maintains its competitiveness Today, Qatar produces about 10 million through expansion of industries and services tons per year of different petrochemicals. Our with competitive advantages derived from petrochemical industry is on the threshold of hydrocarbon industries. further unprecedented growth. The signifi- This leads to the development of human cant increase in petrochemical exports from resources and economic capacities throughout Qatar has enabled this vital sector to play a Qatar in an environmentally sustainable man- very active role in advancing and diversifying ner, enabling the private sector to play an Qatar’s economy. It is our aim to consolidate Qatar’s position as one of the major interna- essential role in achieving sustainable devel- tional hubs for the petrochemical industry opment. based on gas feedstock. Last but not least, I must mention that we are striving to develop a knowledge-based FR: How do you foresee the future of Qatar’s sta- economy characterized by innovation, entre- bility and financial outlook? preneurship, excellence in education, a world- H.E. Dr. Mohammed bin Saleh Al-Sada: There are class infrastructural backbone, the efficient several factors that lead to the economic, delivery of public services, and transparent social and political stability of a nation or a and – above all – accountable governance.

H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy & Industry - State of QATAR, Chairman & Acting Managing Director of Qatar Petroleum 18 Interview with H.E. Dr. Mohammed bin Saleh Al-Sada

Interview with: M - r. Issa Al Ghanim – Governor of Qatar for OPEC

Focus Reports: How would you assess the current USA are exporting more petroleum products than performances of the energy sector in Qatar? they import. What are the consequences for the Mr. Issa Al-Ghanim: Qatar has achieved an global and the regional Middle-East oil & gas indus- incredible expansion in its LNG industry and try? more widely of its energy related businesses. Mr. Issa Al-Ghanim: The United States are reduc- In 2000, Qatar’s GDP originating from the ing their dependence on oil import through the energy sector represented QR 39 billion ($ 11 development of local resources in shale gas and billion). In 2011, it reached QR364 billion tight oil. This evolution in the oil and gas indus- ($100 billion). It represents over 200% try raises many different issues in the down- increase in real terms. Part of this growth is stream and upstream areas as well as in the due to the oil price increase but most of it geopolitical domain. comes from the development of a world class First, less import in the US means more oil gas industry in Qatar. available to the rest of the world. Like in the In 2011 Qatar LNG production reached a case of LNG industry evolution, some of this capacity of 77 million ton per annum (Mtpa) supply will be redirected to the emerging coun- which represents 25% of the global LNG trade. tries. The global oil industry growth will be led Qatar built a completely new LNG business by Asia demand growth. According to the OPEC model, which allowed us to become a truly long term outlook, by 2035, 92% of the oil global player. Qatar can sell LNG in every demand growth will come from the emerging region of the world, and can adjust its sales’ countries. portfolio on a continuous basis to match mar- Second, as new supplies enter the oil market requirements. The Gas to Liquids (GTL) ket, OPEC’s role to manage the volumes accord- industry with the ORYX and the Pearl GTL ing to demand is challenged. OPEC production project has created the capacity to produce may have to be adjusted to this new situation. from natural gas over 260 000 barrels/day of Third, this past decade, the refining indus- clean transportation fuels and different liquid try has evolved to transform heavier crudes, petroleum products. Technology and business especially in the US. With this coming abun- innovation has allowed us to build again a dance of light oil and natural gas liquids from unique world class industry. the US, the refining industry may have to read- Further expansion of our Oil & Gas industry just what should be the optimal product mix will focus on the downstream sector and espe- and the location of new refineries. As well, the cially the petrochemical industry. These invest- actual renaissance of the petrochemical indus- ments target to add value to the condensates try in the US will challenge the current cycle and natural gas liquids that are associated with and impose some drastic geographic realloca- the LNG production. As a whole, Qatar contin- tion of market shares. ues to look at expanding its presence along the Last, the energy independent US may drive value chain of the global hydrocarbon industry. some change in their foreign policy towards the Middle-East and North African (MENA) region. FR: For the first time in more than 60 years, the Altogether, it creates uncertainties over the

Mr. Issa Al-Ghanim Governor of Qatar for OPEC 19

oil market future and over the kind of invest- Like Qatar as hydrocarbons producers, OPEC ments levels and patterns in downstream as supports the use of resources and technology well as in upstream. Such uncertainties may to reduce gas flaring. In this area, OPEC Mem- delay investment decisions and as you know, bers have actively participated in the World the investment of today is the production of Bank—Global Gas Flaring Reduction Partner- tomorrow. ship (GGFR). FR: What new policies have been introduced to FR: restrain the impact of the oil & gas sector’s activi- Qatar has embarked on an ambitious interna- ties on the environment and how is OPEC pushing tional expansion program, how do you think this for the best environmental practices? strategy will strengthen Qatar’s global leadership? Mr. Issa Al-Ghanim: In terms of actual volume Mr. Issa Al-Ghanim: Since 2005, the country of CO2 emission, the State of Qatar contrib- invests as an equity investor in different com- uted at about 0.23% of global CO2 emission panies and international assets. It has a finan- and ranked 47th among UN members. Given cial approach to investment and looks world- its small population (1.7 million inhabitants) wide at the potential investment opportunities. the ratio per capita appears very high. On the other hand, Qatar Petroleum as well The real issue is somewhere else: Qatar pro- as other Qatari companies develop interna- duces natural gas and transforms it into LNG tionally through organic growth, acquisition to transport it to market. Such an industrial process emits a lot of CO2. No LNG is con- and Joint Ventures. Their approach is indus- sumed locally but the emissions to process it trial to optimize their operations and to are accounted in Qatar. As the natural gas is increase their value. In the oil & gas industry, the cleanest fossil fuel, its usage enables many Qatar Petroleum International (QPI) has been countries to reduce their CO2 emissions. All designated to run the international invest- together, it has a positive effect on the global ment. For instance, one of the recent projects balance of Green House Gas (GHG) emissions. is the co-investment in Singapore’s petrochem- The same reasoning over pollutants could apply ical activities with Shell. to clean fuel products issued from the Qatari As Qatar is extracting most of its revenue GTL plants. from exports, we are willing to make some The environmental sustainability issue is a very important subject. Qatar has launched investments with our commercial partners and many initiatives towards sustainable develop- invest in their economies. I think it is quite ment. Some are to host conferences like the logical after having built up a major oil and gas 13th UNECTAD last April 2012 on the sustain- business in Qatar that we should look at lever- able economic development or the next United aging that position by moving along the indus- Nation Climate Change conference, COP 18, try value chain, and entering similar busi- in Doha in December 2012. Some are practical nesses in other countries. implementations like one of Qatar Petroleum’s As a country, we are looking not just to recent achievements such as Al-Shaheen Gas diversify into other parts of the hydrocarbons Flare Recovery. business but into new business areas as well. Further than its individual commitment, Qatar is associated with the other OPEC coun- The revenue extracted from the production of tries to advocate responsible stewardship of hydrocarbons in Qatar is sufficient to cover the the environment. OPEC supports comprehen- need of the current generation. But we need to sive, fair and realistic efforts to reduce the avoid complacency and we must prepare for environmental impacts of global energy use. the next generations of Qataris. 20 Khalid bin Khalifa Al-Thani, CEO of Qatargas

Interview with: K halid bin Khalifa Al-Thani – CEO of Qatargas

Focus Reports: What were the key factors of suc- menced long-term deliveries of LNG to Japan cess that allowed Qatargas to stand as the world’s in 1996 and are now uniquely placed to help largest producer of LNG in such a short period of them. We opened our Japan Liaison Office in time? August 1996 in Nagoya for the purpose of Khalid bin Khalifa Al-Thani: Qatargas was facilitating good customer relations and liai- established in 1984 and pioneered the LNG son with various Government authorities and industry in Qatar. Today, it is the largest LNG organizations. producing company in the world supplying Qatargas currently supplies its consortium customers in all four corners of the world from of 8 Japanese buyers with six million tonnes our first class facilities in Qatar. per annum of LNG on a long-term basis. Fur- We have quadrupled our energy exports thermore, following the tragic events of March with the completion of our expansion projects 2011, we committed to supply around an addi- making Qatargas the biggest exporter of LNG, tional 10 million tonnes of LNG on a short- all within 15 years of our original train com- term basis to our Japanese customers, which mencing production. Fast pace is a clear indication of our ability, flexibility We have during this time invested heavily and reliability to be able to deliver LNG to to ensure not only our ability to meet the wherever it is needed most. needs of our customers, but also proactively Japan, its people and our customers are worked with the government of Qatar to very important to us and we are doing all we ensure the responsible development of the can to support Japan’s requirement for stable North Field so we can contribute to the shared supplies of energy. vision of meeting secure long-term energy demands. FR: If Qatar is under such a rapid growth and pros- Our growth to date has revolved around perity nowadays, it is mainly thanks to what has the vision of many people within Qatargas and been achieved in the LNG industry, impacting on the partnerships we have undertaken to give the society’s well being. At Qatargas, what are you us the experience to implement our vision. We doing to bring further support to the community? continue to use all available in our commit- Khalid bin Khalifa Al-Thani: Qatargas has ment to becoming the premier LNG company introduced a high quality national develop- in the world. ment programme in order to meet its business Qatargas announced that it would be send- objectives in this area and proactively support ing 11 million more tones of LNG to Japan in the Qatar National Vision (QNV) 2030 devel- addition to the 9 million tones already agreed opment goals. on last fall after the Great East Japan Earth- For the second year running we have won quake. How would you define the relationship the prestigious Qatarization Award for our between Qatar and Japan and how do you contribution towards support for training and assess the opportunities of such a long-term development as part of the QNV 2030. This partnership? recognition made us very proud. It under- Japan is our foundation customer. We com- scores once again the success of our Qatariza-

Khalid bin Khalifa Al-Thani, OCE of QAtargas 21 tion policy which focuses on ensuring Qatari For Qatargas, our focus now is to be the participation in all fields of the company’s operations. world’s premier LNG Company by 2015, We have recently become the first company in Qatar to secure accreditation from the UK- where we will be known for our people, based Institution of Engineering and Technol- ogy (IET) and the Institution of Chemical innovation, operating excellence, Engineers (IChemE) for successfully imple- environmental responsibility and menting a development programme for Qatari engineers and graduates. corporate social citizenship. FR: As producer of a clean energy, what are you with direct benefits to air quality in the region doing to reduce your impact on the environment? and the new mega-trains have been designed Khalid bin Khalifa Al-Thani: he LNG industry with highly sophisticated NOx mitigation can help the world meet its energy needs by equipment, which easily meet the strict Min- providing a clean, safe and reliable source of istry of Environment (MoE) NOx emission fuel. Qatar LNG will bring the benefits of limits. Furthermore the mega-train design energy diversity to our customers by giving and operating philosophy allows for substan- them a clean burning, reliable fuel that can be tial reduction in CO2 emissions per tonne of used efficiently in power generation and by LNG produced versus conventional LNG train industrial, commercial and domestic con- technology. sumer. In 2011, Qatargas received the first ever FR: You are now the leading LNG producing com- ‘Green Award’ for its fleet of LNG carriers for pany in the world, if we come back to visit Qatar- its reduction in emissions from Q-Max/Q-Flex gas in 5 years, will you still be a leader? What will fleet of vessels where significant reductions in the company look like? emissions are obtained for each molecule of Khalid bin Khalifa Al-Thani: For Qatargas, our LNG transported when compared to conven- focus now is to be the world’s premier LNG tional LNG vessels. The emission reductions Company by 2015, where we will be known for are possible through the introduction of pio- our people, innovation, operating excellence, neering onboard boil off gas recovery systems. environmental responsibility and corporate We are also currently undertaking the social citizenship. Jetty Boil-Off Gas Recovery Project (JBOG) We continue to demonstrate our ability as which will minimize LNG boil-off gas flaring a reliable and safe global supplier of LNG and at LNG berths by making productive use of will add to the energy diversity of countries in the gas that boils off during loading of LNG Asia, Europe and the Americas. We are com- carriers at the Ras Laffan Port. This will reduce mitted to helping these countries improve loading emissions by 90%. Indeed, this project their energy security by diversifying the long- has, in the last few days, been announced as term mix of their energy supplies. a winning entry in the 2012 Excellence in Flar- Improving our operations to minimize our ing Reduction GGFR Awards. It will be pre- environmental footprint remains a top prior- sented at the World Bank-led Global Forum ity. Therefore, we are committed to meet or on Scaling Up Flaring and Gas Utilization for exceed the most stringent government regula- Development Gala Dinner in London at the tory standards and promote environmentally- end of October. friendly practices. We believe that sustaining Qatargas 1 operations has also completed our environment is an obligation we owe to a suite of significant NOx reduction projects our future generations. 22 Wael Sawan - Executive Vice President Qatar SHELL GTL Ltd

Interview with: W ael Sawan – Executive Vice President, Qatar Shell GTL Ltd

Focus Reports: With more than $20 billion invested thankfully we have been able to demonstrate here, what is the significance of Qatar for the Shell the technology performing at its best across Group? the entire plant. Wael Sawan: This $20 – 21 billion investment From an operational perspective, we have is actually just for Pearl Gas to Liquids (GTL) been very pleased with the progress of the and Qatargas 4 as we may well invest more on plant ramp-up. The technology is working other new projects. The significance of Qatar right, our operators who have been on the for us is the evolution from no operations in plant for an excess of 3 years up to 5 years, 2002 to making it one of highest value coun- prepared meticulously from the early days for tries for the Shell group a decade later, with the start up. It has been good so far. roughly 10% of the overall value for the group. FR: What do you think have been the key factors Qatar represents a significant part of our over- of success and what are the lessons learnt on a all production and a significant part of our project management side? reserves and cash flow generation. It also Wael Sawan: Undoubtedly, the one thing I becomes the best demonstration of what Shell would emphasize is absolute focus on people. can do in partnership with the major resource Our worker welfare program, within Shell and holder here, QP, and it allowed us to build an within the region has been world-class, earn- integrated gas platform across the entire value ing us many awards. This is very much built chain. on the notion that if we focus on the welfare of our people and take care of them, then we FR: A word about the biggest energy project in will see them boost their productivity and Qatar, Pearl GTL; what have been the financial deliver the safety and quality performance risks and the operational challenges of the project? that we aspire to. Wael Sawan: From a financial risk perspective, That has been what allowed us to achieve we take on the entire capital investment of a great record for Shell and Qatar, 77 million this project because of the nature of the pro- hours without a lost time injury (LTI), and that duction-sharing contract, where the investor makes us enormously proud as an organiza- bears the entire responsibility. Of course given tion. that this was going to be the first world scale The second key lesson is meticulous prepa- GTL plant, there is an inherent risk involved. ration ahead of startup; there is pre-invest- The technology has been evolving over the last ment in the ultimate operation of the plant, 40 years during which we filed up to 3500 pat- bringing operators in, going through system- ents in all aspects of this technology. We had by-system from all our learning of past proj- experienced and harnessed the GTL technol- ects in Shell. The goal is to know exactly what ogy in our Bintulu project in Malaysia in 1993 the potential traps are, overcoming them, mit- but Pearl GTL was a big step forward and igating them, planning for them, and there-

Wael Sawan Executive Vice President Qatar SHELL GTL Ltd 23

fore when you do start up you are in a position rior; we do some surveys to understand the to be able to do so with minimal issues. behaviors of drivers on the road, looking at developing publications, leaflets, information, FR: Qatar Shell established a Research & Technol- going out to the media, and trying to work with ogy Centre at QSTP with a commitment to invest schools for inclusion in their curricula. . $100 million on research programs over 10 years, We have also looked at universities. Last can you tell us more about this research center and year we started helping Qatari teams join Shell why did Shell choose to commit so highly to research Eco-marathon, which is a global activity that in Qatar? Shell sponsors with 3 races each year in the Wael Sawan: We started as the anchor tenant, Americas, Europe and Asia. the first of all companies to open a research There is quite a raft of initiatives and we feel center in QSTP. that we have a significant responsibility in that We did so because of the belief that this was going to be a place that was going to support area given that we are the largest foreign inves- Qatar in its vision, and support our own activ- tor but also because we have some specific ities here in Qatar given the fact that we had capabilities that we can bring to the table. Pearl GTL and other activities coming through. On Qatarization, we have taken it very seri- It was an opportunity to enhance our pres- ously since the first day we came into Qatar ence and deliver value to the country. We dif- and that is something we are proud of. We have ferentiate ourselves from other research cen- 250 Qataris in the organization today, and we ters because we identify and focus on our key are proud of the fact that we were the only IOC strengths where we will really invest our to have won his Excellency The Minister of resources in. Energy and Industry’s annual Qatarization We have a commitment of $100 million to award 3 years in a row. support our research programs; there is a whole range of activities. One that I am par- FR: Where do you see Shell Qatar in the next 3 to ticularly proud of is a partnership with QP and 4 years? Imperial College in the London to spend $70 Wael Sawan: In the exploration sector, Qatar million, one of the largest R&D efforts between has opened the Pre-Khuff horizons, and Shell government, academia and corporate in what has been lucky along with our partner CNPC we call carbonate reservoir research and spe- to be awarded block D on that project. In pet- cifically around carbon capture and sequestra- rochemicals: we have been awarded the first tion into those reservoirs. Greenfield petrochemical project that has come up, so we will be part of that growth area as How does Shell’s commitment to the community strengthen the relationship with Qatar? well, and the third element of it is QPI, which purchased some Shell assets in Singapore in Wael Sawan: It is all related to the Qatar National Vision 2030; we began to build our 2009. We are also involved in a refinery, pet- own program on that national vision. rochemical and retail station in China; it is a One of the big initiatives we have is road multibillion dollar development, which we will safety. We work very closely with the ministry progress together with QPI and CNPC, so that of interior, we take expertise from other road is the growth agenda. safety initiatives we have around the world, I would like to recognize the role that Qatar such as Oman, Malaysia and Brunei, and we has played in these achievements, in that it is have developed something we bring to the one of the unique locations in the world where table through that experience. We work the government and the oil and gas sector towards safety along with the Ministry of Inte- really value what the IOCs bring. 24 Adel Ahmed Albuainain - General Manager Dolphin Energy Qatar

Interview with: A del Ahmed Albuainain – General Manager, Dolphin Energy Qatar

Focus Reports: The Dolphin Gas Project is now Forum: an annual event chaired by H. E. complete. What have been the most significant Mohamed Saleh Al Sadah, Minister of Energy milestones and achievements? & Industry and Chairman of Qatar Petro- Adel Ahmed Albuainain: Dolphin Energy first leum Company. delivered gas in 2007, marking the arrival of Qatari gas to the UAE. This was followed by FR: How is Dolphin Energy a reflection of two major events in 2008 when the company regional energy cooperation? achieved full throughput of 2 billion stan- Adel Ahmed Albuainain: The Dolphin Gas Proj- dard cubic feet of natural gas per day and first ect is the first of its kind for this region. It is supplies reaching Oman in October of the a symbol of regional energy cooperation and same year. a 21st century vision of international trade. The main activities at that time were It is the only energy initiative to link three focused on shifting from project mode to countries and illustrates the support of the being operational; as we needed to optimize governments of Qatar, the UAE and Oman and make sure that we had sustainable pro- and the unerring commitment to ensure the duction. Ensuring we met customer require- project’s success. ments was also a priority as gas demand is To this day, the input and support of our really high in the UAE and Oman. Dolphin shareholders, Mubadala Development Com- Energy gas accounts for 30% of the UAE’s pany, Total and Oxy, and our strategic part- energy requirements, helping fuel economic ner, Qatar Petroleum, can be seen in our growth and diversification and supporting senior management structure and the num- the requirements associated with population ber of secondees placed in the company. growth. The Dolphin Gas Project sends a clear mes- Since operations began, Dolphin Energy sage about the benefits of energy cooperation has supplied more than 3 trillion standard for the wider region and is a shining example cubic feet and a unique facet of the project is of what can be achieved. that Dolphin Energy is involved in the three It is also about bringing people together stages of the value chain - upstream, mid- and opening up opportunities for the citizens stream and downstream. of the three countries: we have Emiratis It is rare to find this level of involvement working in Qatar, Qataris working in UAE; in the value chain in the oil and gas sector. we travel a lot between Abu Dhabi and Doha. Another important achievement is in the area of Qatarization. Dolphin Energy is FR: When the Dolphin Gas Project was designed, actively recruiting Qatari Nationals - cur- the pipeline route was plotted to preserve impor- rently, 33% of the workforce is Qatari. tant marine habitats and corals. What were the Around 50% of the senior management team main obstacles in terms of developing the project is Qatari, which is an excellent achievement. while preserving the environment? In May 2012, we received the Certification of Adel Ahmed Albuainain: We have made a major Appreciation at the 12th Qatarization contribution to the protection of the environ-

Adel Ahmed Albuainain General Manager DOLPHIN ENERGY Qatar 25

ment. Our commitment started at the design These communities are concerned about phase and we needed to ensure that whatever the impact the companies operations will we decided to enact from production to dis- have on their lives. So we conduct a lot of tribution, the value chain was safe and envi- education in that regard, we host training ronmentally friendly. workshops and talk to the communities to One of Dolphin Energy’s earliest decisions understand what their needs are and outline was to rank QHSE (quality, health, safety and the opportunities on offer to them. We environment) excellence with other primary encourage them to work with us because business objectives. This set the tone for the there are many benefits to living close to company’s development in its project phase and received endorsements from our share- where you work. holders and the surrounding communities. In addition to participating in the Com- So, from these early beginnings, Dolphin munity Outreach Program, we also run a Energy was committed to business processes number of initiatives that touch upon culture that focused on efficiency, investment in peo- and the arts, education, sport and charity. ple, correct ethical conduct, social responsi- We have a strong link with Qatar Univer- bility, profit and growth. sity and have formed a strategic partnership Dolphin Energy support many environ- with them. We support all their initiatives mental programs and take important steps and opportunities and are attracting more to ensure the production and processing of graduates to the company as a result. natural gas has minimal environmental We also have a program with Texas A&M, impacts - from plotting a subsea pipeline which is more focused on engineering. route that avoided important turtle breeding Our role is to support not only higher edu- grounds and protected marine habitats to cation but also schools. We hold sessions to initiating a flare reduction program to help reduce emissions. explain our project so that we can attract The company also took steps to partner Nationals. with government institutions and leading That has had a positive effect because we organizations in the field of protection and now have employees who were keen to join conservation. This has seen the implementa- Dolphin Energy since they were in High tion of many initiatives such as the Coral School. We also have some situations where Project and Beati Watani, an online environ- some employees decided to leave Dolphin mental education program. Energy but then want to come back two months later! FR: This is a project that has a strong number of initiatives to support the population. Can you FR: What are Dolphin Energy´s most significant tell us more about the most significant commu- goals for the future ? nity support initiatives you are undertaking? Adel Ahmed Albuainain: Our focus is on ensur- Adel Ahmed Albuainain: We have joined forces ing we send natural gas to our customers in with other companies in Ras Laffan and have UAE and Oman without interruption and in created a “Community Outreach Program”. We are members along with Rasgas, Qatar- full observance of our obligations to mini- gas, Oryx and Qatar Petroleum. We are mize any environmental impact. involved in this because our operations are We are also keen to build on our ability to in Ras Laffan and there are communities liv- attract and retain talent, focusing on the ing nearby such as in Al Khor that need our need to keep our employees motivated so that support. they build successful careers in the long term. 26 Interview with: Bart Cahir President and General Manager, ExxonMobil Qatar

Interview with: B art Cahir – President and General Manager, ExxonMobil Qatar

Focus Reports: Can you give our readers a his- also in places like India that had previously torical overview of ExxonMobil since its estab- not been an LNG buyer but has grown to be lishment in Qatar? one of Qatar’s biggest buyers. Bart Cahir: ExxonMobil’s partnership with In many ways, the globalizing of the LNG Qatar Petroleum (QP) and the State of Qatar business is due to the vision of His Highness is in many ways a historic partnership. We the Emir and underpinned by the partner- have participated in 12 of 14 LNG trains, ship that ExxonMobil and QP have formed. and we are the only international oil company that participates in the domestic gas FR: As Australia and the United States are business, through Al Khaleej Gas and the becoming significant players in the gas market, Barzan Gas project, which is forthcoming. what is your insight on Qatar’s place in this These are very important set of assets for global context? both ExxonMobil and for QP. Bart Cahir: There are going to be more global It started with the vision of His Highness players in the LNG business, and I think if the Emir, and was also underpinned by you take the long view of the LNG business, strong governance in the State of Qatar. then that’s healthy. I think it creates a One of the great success stories about Qatar greater acceptance of gas as a fuel. Ulti- that needs to be told is the transparency in mately, as populations grow they will need the industry – the business ethic that they more energy to power their economy. And have been able to drive through the oil and we know that populations are going to con- gas sector. tinue to grow and that diversity of supply, Secondly, as ExxonMobil and QP began to carry out these developments together, it was really a partnership grounded in technology. The North Field was, in many ways, One of the great success viewed as a stranded gas resource because it was too far from the traditional LNG buy- stories about Qatar that ers. We needed technology that could bring needs to be told is the the costs of supply down and make it viable to get to those markets. transparency in the 77 million tons are sufficient to power 70 million homes annually. When thinking industry – the business about the role energy plays in creating economic prosperity and lifting people out of ethic that they have been poverty, the historic nature of ExxonMo- able to drive through the bil’s relationship with QP is that it has been an enabler, not only for prosperity here but oil and gas sector.

Bart Cahir President and General Manager, ExxonMobil Qatar 27

and having reliable input from multiple projects. Technology always underpins what locations only makes gas more attractive as we do, and we have focused our research at a fuel. QSTP on a couple of areas that we think are If you couple that with Qatar’s reputation important in Qatar. for reliability, and being a good supplier, One of these programs is on water reuse. there is going to be plenty of room for Qatar Water resources are pretty scarce in this LNG in that sphere because more and more part of the world, so we are working hard to people are going to want gas. So in the long find ways to take some of the industrial term, I think it is healthy for Qatar. effluent and put it to good use in a clean, safe, and environmental friendly manner. FR: What are the main projects and activities We’re undertaking significant research into that are on your core agenda today for Exxon- ways that you can bio-remediate the water Mobil Qatar? and ultimately use it in a productive capac- Bart Cahir: We have gone through a pretty ity. rapid expansion in the LNG business over Another area of focus in our research is the past few years. The focus today is on safety in our gas and LNG processing oper- ensuring that we have the right operational ations. We have undertaken significant and human resource development processes efforts focused on LNG safety in two areas. in place to ensure safety and reliability. One area involves the design and installa- In the domestic gas business, we are of tion of a 3-dimensional virtual training course focused on these things, while also simulator, where you essentially construct still under an expansion phase. Qatar’s an entire plant environment and bring peo- economy is continuing to grow and signifi- ple in to train them. It gets back to the cant infrastructure investments are being Human Resource challenge - how do we made. build more competencies in people onsite. The Barzan Gas project is the next step for us. We expect to bring the first train on FR: Where do you pinpoint the future opportu- in 2014 with the second train in 2015, nities of the energy industry in Qatar in the cumulatively that will provide another 1.4 next years to come? billion cubic feet a day of natural gas into Bart Cahir: Within the portfolio of the LNG the domestic market. Domestic gas is impor- business, there are still opportunities to tant for the large amount of infrastructure optimize the existing infrastructure. We build-out that is ongoing, including rail want to make sure that the trains are per- projects, additional hospitals, and all related forming with maximum efficiency. For activity in the run-up to the 2022 World example, we want to be able to produce the Cup. All these projects are going to require 77 million tonnes as an industry from as a reliable supply of energy and we are little inlet gas as possible. Efficiency is very pleased to be a part of that. important, and can be achieved in a variety of ways. That is the opportunity for today. FR: What are the main initiatives towards If we look on the longer term, I think the research in Qatar, especially through the com- State of Qatar has managed its resources mitment of ExxonMobil at Qatar Science and effectively and efficiently. If a time comes Technology Park? that they decide to lift the moratorium, Bart Cahir: ExxonMobil Research Qatar hopefully we will be a part of that, but today (EMRQ) is our entity that operates at Qatar we are quite happy with the business that Science and Technology Park. we have and ensuring that business gets to EMRQ is focused on a range of research its full potential 28 Florence Verzelen, General Manager, GDF SUEZ QATAR

Interview with: F lorence Verzelen – General Manager, GDF Suez Qatar

Focus Reports: How significant is Qatar among desalination, water & waste treatment, the global GDF SUEZ group ? renewable energy and energy efficiency. Florence Verzelen: GDF SUEZ activities in GDF SUEZ is willing to develop its busi- the country target electricity, gas, energy nesses in Qatar on the long term view. services and environment. GDF SUEZ is for instance Qatar’s largest Independent Water FR: What are the main challenges in meeting & Power Producer, with its 40% share in the increasing demand of water and energy in Ras Laffan B and its 20% stake in Ras Laf- Qatar? fan C (Ras Girtas). The Group is now work- Florence Verzelen: Water scarcity is Qatar’s ing on the latter’s extension. In the gas sec- major issue. For the time being, the country tor, GDF SUEZ, as one of the country’s 9 only has two days of water reserves. The operators, is currently preparing the explo- government forecasts water shortage by ration campaign of Block 4, located in the 2014 and need to double its supply to meet northern sector offshore Qatar. GDF SUEZ the increasing demand, which is estimated will be the first operator to drill the Pre- by Kahramaa at 100 million gallons/day by Khuff formation, which represents a prom- 2016. The country will increase the capacity ising target for Qatar. The drilling period of its existing IWPPs to meet this demand. should start at the end of 2012 and lasts for For the time being, Qatar has four major one year. In environment, GDF SUEZ is operating 3 wastewater treatment plants, respectively located in Barwa City, Doha West and Lusail. Water scarcity is Qatar’s Qatar’s economic potential, as well as its huge amount of incoming infrastructure major issue. For the time investments, constitutes a strategic oppor- being, the country only has tunity for GDF SUEZ. The country has the world’s fastest economic growth, with 19% two days of water reserves. in 2011. 2012 forecasts follow this trend. Similarly, it will invest around 150 billion The government forecasts USD to host the FIFA World Cup in 2022 and a similar amount to implement its water shortage by 2014 National Vision 2030. and need to double its GDF SUEZ is ready to use its expertise to serve Qatar’s sustainable growth. Thanks supply to meet the to its presence on both the energy & environment value chain, the Group can provide increasing demand. innovative solutions in various sectors, such as power & water production, water

Florence Verzelen, General Manager, GDF SUEZ QATAR 29

power plants which secure an adequate power supply within the country. Qatar has the second highest consumption rate in the As the world’s first utility provider, region, which is likely to increase due to the infrastructure development plans related GDF SUEZ has been able to build to World Cup 2022. We are working towards more water significant experience as well as a reserves with Ras Laffan C, which is Qatar’s largest IWPP. It has a production capacity strong reputation over the years. The of 2.730 MW of power and 286 000 m3 of Group’s market knowledge and its desalinated water. This project, of which construction work has lasted for three ability to bid on time and without years, is a major success for the Group. The opportunity of its extension, ordered by incidents were key elements to become Kahramaa, is a new challenge for GDF SUEZ, and one that the Group is keen to a reliable partner of Qatari authorities. achieve.

FR: How would you assess your competitive idly changing infrastructures. What will be advantage, given the fact that GDF SUEZ was the biggest obstacles that the country might appointed as the preferred bidder and partner face in the near future? of choice for huge projects such as Ras Laffan C ? Florence Verzelen: Energy efficiency is Florence Verzelen: As the world’s first util- undoubtedly Qatar’s major issue. Signifi- ity provider, GDF SUEZ has been able to cant improvement in the construction sec- build significant experience as well as a tor for example will be necessary to reach strong reputation over the years. The the government’s goal of a sustainable Group’s market knowledge and its ability to growth, as written in the National Vision bid on time and without incidents were key 2030 or the goal of zero carbon emission elements to become a reliable partner of set for the World Cup. Qatari authorities. Qatar has the second highest power con- GDF SUEZ is also the first independent sumption rate in the region. This is mainly power producer within the region, which can also explain why it has been appointed due to cheap electricity. Therefore, reducing as a preferred bidder. the consumption will require strong politi- In addition, GDF SUEZ has built good cal will and awareness campaigns to change relations with Qatar Petroleum and Qatar local habits, especially towards young pub- Electricity and Water Company. The Group lic. is able to understand their needs and to However, with 1/3 of the world’s gas meet them with tailored solutions. reserves and major incoming events such To strengthen these relations, GDF as the FIFA World Cup 2022, Qatar repre- SUEZ and QP have signed a Memorandum sents a country of opportunities. Lots of of Understanding to explore project oppor- projects will be developed here and will tunities outside Qatar. The Group is willing require expertise and competencies in var- to sign a similar partnership with QEWC. ious fields. In this regard, if a company FR: Qatar has the fastest growth in the world, would like to expand its activities abroad, therefore demanding a lot of energy for its rap- Qatar should definitely be on their radar. 30 Lewis Affleck Managing Director Maersk Oil Qatar

Interview with: L ewis Affleck - Managing Director, Maersk Oil Qatar

Focus Reports: What where the main milestones injecting water into the reservoir to help flush and achievements since Maersk Oil settled in the oil out and enhance the recovery. Qatar? We have one of the largest offshore water- Lewis Affleck: It is a good time for you to visit floods operations in the world. In total we have as we are getting very close to Maersk 20th drilled 300 wells, including 169 wells in our anniversary of being in Qatar, on the 22 June last development program, which we just com- 2012. pleted. How it started is quite simple: we took a Maersk Oil holds more than 35 oilfield field in 1992 that others thought was uneco- technology patents, and is establishing the nomic, and that was not particularly produc- Maersk Oil Research and Technology Centre tive. Today, after 20 years we have produced (MO-RTC) at Qatar Science & Technology Park around 1.2 billion barrels of oil from that field, (QSTP). whereas others thought it was not economi- cally viable. We have come to produce 300,000 FR: How significant is R&D for Maersk and how barrels of oil per day so it is quite a massive does it account in your unique technological lead? achievement for us, as it is the largest oil-pro- Lewis Affleck: We believe we are a technical- ducing field offshore Qatar. led company. If you look at the overall vision Maersk Oil took over the operations of the we have, “navigating complexity, unlocking Al-Shaheen field in 1992 when very few com- potential”: we actually unlock it through tech- panies believed in its economical viability. nological solutions in complex reservoirs. Maersk has been visionary and has succeeded We have done it in Denmark and we have in operating this huge project, which now done it here in Qatar, as well as in other coun- accounts for around one third of Qatar’s oil tries, making us experts on this niche. We are production. only upstream, unlike other companies. We partner with the NOC’s like QP here to unlock FR: What were the main challenges that you had the potential of these fields. to overcome and what were your key factors of suc- About R&D, Maersk Oil Research and Tech- cess? nology Center is our only Research Center in It is a carbonate reservoir and its particularity the world, so it is THE Research Center, it is is that the reservoir is very thin but extends not something we are just doing because Qatar over a large area. Many companies thought it would like us to do it. It is something very was not producible. important to us. What Maersk did is that we brought tech- We have committed to spend 100 million nology that we used in the North Sea where dollars over a 10-year period and we inaugu- we drill extensive horizontal wells, to have a rated it last year. We have got some very good much larger exposure to the reservoir. We projects going on, which have been very well brought in that technology and it has been received. very successful. When you go into such a field, the first In addition to that we are running a recov- stage is primary production, where you drill ery technique called waterflooding; we are the wells, you get the oil recovery that natural

L ewis Affleck Managing Director Maersk Oil Qatar 31 energy will produce, you then go into second I have worked in many areas of the recovery which is waterflood by swiping more oil to the wells and you finally go to enhanced world, and I can say that Qatar is an recovery which makes the oil in place more mobile. excellent place to do business. The We are currently running a pilot which will be starting next month on the enhanced oil Qataris have an encouraging recovery, it is called a WAG: water-alternating- environment, and this is why we are gas injection. We believe that there is tremendous potential. committed to the long time. Maersk Oil is a company that sets Safety as one of the most important value: we know that everyday Maersk Oil Qatar is performing quite industry. As a result of its approach to envi- challenging tasks where safety is key. The CEO ronmental management, the project’s gas Jakob Thomasen visited Qatar in February to gathering system was recognised as the world’s see how « incident-free » is being implemented largest Clean Development Mechanism (CDM) in Qatar and he set safety as the main priority project by the UNFCC, as part of the Kyoto for 2012. Protocol.

FR: Maersk is involved in a project on gas recovery FR: Where do you see Maersk Oil in the next 2 to with QP that was approved by the United Nations 3 years? in 2007 as a Clean Development Mechanism Lewis Affleck: The great thing about this field, (CDM) under the Kyoto Protocol, which will aim although we have already produced around 1.2 at reducing CO2 emissions in Qatar by 17.5 mil- billion barrels and drilled 300 wells, spent over lion tones over 7 years. As a company deeply 8 billion dollars developing it; is that today involved in environmental concerns, what strate- there is still enormous potential. gic role is Maersk willing to play in the green Within the next month we expect to get growth trend that is currently taking place in the next stage of development approved, Qatar? which will be another 50 well development. Lewis Affleck: The project you mentioned is a We believe that this is a field that will still be fantastic project. In many of the areas of the producing in 70 to 80 years time. Middle East, flaring is done extensively to cre- We are looking forward to making further ate production, and what we can see now in technical achievements and improving recov- Al-Shaheen is that we have reduced production ery. flaring to an absolute minimum. It is an amaz- ing achievement when you consider that we The focus at this moment is maintaining produce 300,000 barrels of oil a day. the plateau, 300,000 barrels a day for a long Together, Qatar Petroleum (QP) and Maersk period of time. The work that we have done Oil have successfully reduced gas flaring from has identified a number of projects which the Al-Shaheen field to an absolute minimum would allow us to do this for many years ahead. - a rare accomplishment in the industry. A 90% We truly think there is enormous future reduction (2007 - 2011) in greenhouse gas yet to be unlocked with this reservoir alone. emissions has been achieved by capturing pre- I have worked in many areas of the world, viously flared gas and turning it into clean and I can say that Qatar is an excellent place electricity, thereby increasing the national to do business. The Qataris have an encourag- electricity supply, providing employment and ing environment, and this is why we are com- transferring technical knowledge to local mitted to the long time. 32 Paul Navratil Energy, Utilities and Mining Leader, Peter Gordon, Senior Manager PwC Middle East

Interview with: P aul Navratil Energy – Utilities and Mining Leader, Peter Gordon – Senior Manager, PwC Middle East

Focus Reports: What is PwC’s history in Qatar? improve their core operational processes: Paul Navratil, Peter Gordon: PwC has been in from exploration to production, production Qatar since 1982, providing a wide range of efficiency, well delivery, supply chain manage- services stretching from assurance, tax, finan- ment & logistics, refining efficiency, and mar- cial advisory and management consulting ser- keting. Additionally, we have assisted several vices. Within those different lines of services of our key clients on to how to most effectively we bring deep functional and industry -rele- deliver their new mega projects, focusing on vant experience to our entire client base. PwC the management of risk, people, discipline Middle East covers a wide territory, from interdependencies, and bringing these capital Libya to Oman, present in every country with projects in on time and on budget. All those the exception of Iran and Yemen. PwC is the factors have material impact on the way that number one professional services firm in the company is able to generate efficient and many of those markets, and has the clear productive revenue. These should be the goals ambition to be so in all the territories we are of most in this industry, especially the in. national oil companies, given that they are That is really the part we like to speak of the main contributors to the state economy, as a differentiator, because we are doing something fundamentally different than the rest FR: What are the main challenges of Qatar’s strat- of the professional services firms, by focusing egy between maintaining its leading position in very much on the operations & revenue sides the Oil and Gas industry versus high efforts to of the business. In particular, the National Oil diversify its economy? Companies in the region have a tremendous Paul Navratil, Peter Gordon: Having a quali- challenge. Given the new fields that they will fied, motivated, high performing workforce Peter Gordon, have to develop, new technologies they will is perhaps this industry’s biggest challenge. Senior Manager, have to deploy, the workforce gaps which will That is a regional problem, which Qatar is PwC Middle East need to be overcome, and the responsibility experiencing the full brunt of, given the scar- that they have towards the state, NOCs are city of national resource. now required to be world-class operators, not To address that human capital gap, one of the old-style administrators. the initiatives that we run at PwC is an inten- So our very simple tactic is to focus on sive management development program that helping those companies and their venture is aimed at high potential Qataris working in partners to achieve world-class operations the oil & gas sector. It is a 5 week program, here in the region. which is run in it conjunction with the QFBA, When you look at the various projects that with its overall aim to bring high potential we are doing here in Qatar, as well as across Qataris to a level that would truly add value the Middle East region, they are very much to their businesses. It involves a mix of class- focused on helping our energy companies to room based learning, case studies, and site

Paul Navratil E neRGY, Utilities and Mining Leader, PwC Middle East 33

field trips where participants can witness the “industry at work”. In the Gulf, economic growth & change FR: What is your insight on Qatarization among the different targets of Qatar Vision 2030? Do have always come from the oil and gas you think the target to reach 50% of Qatari workforce in the energy sector is feasible? industry. The oil and gas industry is the Paul Navratil, Peter Gordon: It is a challenge incubator, not only of the oil and gas in the energy sector because attracting people to jobs in this intensive industry with this economy but also of the national very small workforce is difficult. The value proposition is not very well artic- knowledge economy. ulated to Qataris and it could be made better in order to attract more into the industry. to establish a larger strategy, which is not Energy companies have struggled to go fur- properly articulated yet. ther to development, motivation, empower- QPI is not going to be a material E&P ment etc. The approach to such areas clearly player globally. And why would they want to needs to be thought of in a different way. become so anyway? They could become the Because of the lack of Qatari skills, the natural downstream outlet for a lot of export international oil companies (IOCs) know that Qatar production. But internationalization of Qatar needs to form partnerships, and so they national oil companies should be done for come into the game with a more open mind some very precise goals: the first one should in forming such joint ventures and partnerships. The deal terms entered into in Qatar be to source technology, gain international are typically much better than what the IOCs experience in technology and find out how it get in Iraq, Saudi, and UAE etc. It goes both could be used back home to develop & produce ways, it has created an environment where the next frontier of hydrocarbons. The second they have been able to excel because they have goal would be for Qataris to be able to go into thought of partnerships in a constructive way. international ventures so that they can learn In this regard, Qatar has been extremely suc- about effective operations, new fields, and cessful. You see a number of countries region- new applications of technology, and bring that ally struggling to get joint ventures and last- knowledge & experience back home. Achiev- ing relationships because there always is a ing such objectives would constitute success tension around the motivation of the various and would certainly bring added value to the parties involved, whereas in Qatar the clear core business in Qatar. dependency is there. So we acknowledge that dependency and use it to everyone’s advan- FR: How do you foresee the role of the oil and gas tage. industry for Qatar in the next years to come? Paul Navratil, Peter Gordon: In the Gulf, eco- FR: Qatar Petroleum International has estab- nomic growth & change have always come lished some partnerships with Total in Maurita- from the oil and gas industry. The oil and gas nia, with Shell in Singapore, how do you feel this industry is the incubator, not only of the oil internationalization process of QPI will move for- and gas economy but also of the national ward? knowledge economy. It is in helping the Paul Navratil, Peter Gordon: QPI needs to find energy industry truly deliver its maximum its space, and be clear about the reason they potential value to the nation where PwC & are going international. It would allow them Qatar can work together to achieve success. 34 M. Finbarr Sexton Partner – Ernst & Young Qatar

Interview with: M . Finbarr Sexton – Partner, Ernst & Young Qatar

Focus Reports: What brought Ernst & Young instance identified very early on, back in in Qatar in the first place? the early 90s, the potential that Qatar had M. Finbarr Sexton: Ernst & Young was actu- and still has in being a very reliable sup- ally the first amongst the big four firms to plier. At that point of time, it was easy to set up operations in Qatar. We arrived in conclude 25-year contracts, knowing that the 1950s; effectively at that point of time it is not going to be a 25-year relationship, in Qatar there were no other of the big four but it could easily be extended to a 200- firms active in the country. In 1952, the year relationship. The reliability and the backbone of our clientele was BP and Shell security of supply were amongst the key in terms of the developments in which they attractions that Qatar held - and still holds were involved in the Dukhan field. Indeed, - in the eyes of Japan and South Korea. the backbone has always been the oil & gas Qatar actually holds a unique geographical industry. Ernst & Young has grown in position, being able to supply Asian as well Qatar from then on to a fairly sizeable com- as European markets. It can easily divert pany. Obviously, we have emerged as a very its exports to different countries depend- important player in the Middle East region. ing on market demands. But certainly Today, we have about 350 staff in Qatar Qatar and Japan have a very strong trading alone, and quite a lot of those are serving relationship. On the one hand, Qatar is the oil and gas industry in one role or selling gas to Asian markets; on the other another. We have a long-standing relation- hand, Qatar is buying engineering and EPC ship with most of the oil and gas compa- expertise from those markets. This is a nies, the IOCs that have come here to set strong and healthy relationship. up. FR: What is your view concerning the impact FR: Asia is the main destination for the export that the Eurozone crisis and the regional polit- of LNG. How would you assess the importance ical instability related to the Arab spring may of Qatar’s multilateral relations with Asian have had on the global LNG market and how economies, notably with Japan, South Korea can Ernst & Young be an advisory to compa- and India? nies that feel the repercussions in relation to M. Finbarr Sexton: Japan does not plan those events? things one year ahead. Japan tends to plan M. Finbarr Sexton: The Eurozone crisis has 10 to 20 years ahead. Asia as a whole has obviously dampened the economies of most always been looking for reliable suppliers developed countries and consequently less that could actually supply markets not for performing economies. Industrial produc- a five-year period but rather a 25-year tion is going down. Oil and gas are essen- period and even beyond that. With Qatar’s tial elements in driving industries. So, if oil and gas reserves and the reserves that demand is down, it obviously impacts on are contained in the North field, Japan for the ability of suppliers to supply to those

M. Finbarr Sexton Partner – Ernst & Young Qatar 35

markets. The crude oil market and the gas market are going through interesting times at present. Prices continue to be high, even though they are dropping at the moment. Relationships are very important for From a Qatar perspective, the Eurozone both contractors and IOCs. You need to crisis is unfavorable and the uncertainty in the region as a whole is a cause for seri- come here, set up a representative ous concerns. office, spend some money and put good FR: What would be the main obstacles to Qatar’s global leadership in the gas industry? relationships people on the ground. M. Finbarr Sexton: Australia probably represents the biggest threat to the Qatari LNG industry, being much closer to the Far the long run, you have to answer those East markets than Qatar. So there are questions. Should you need at some stage inherent challenges with Australia bring- to bring in internally the maintenance, you ing on supply. The US is also likely to may have difficulties doing it yourself. So, become a gas exporter with very substan- that is one of the risks that we see. tial quantities in the future. It is therefore likely that prices will come under a lot more FR: Qatar is the new Promised Land and inves- pressure in due course. These will be the tors tend to be very attracted to settle down main issues for Middle East suppliers. in the country. How do you guide them through Demand may fall and prices may come this challenging market? under severe pressure because of cheaper M. Finbarr Sexton: supplies coming from other producers. Entering this market Qatar is a market that went through may be difficult, a contractor or an IOC rapid development over the last 15 years. cannot expect to win a project within just There were a lot of opportunities in terms one year. You have to develop relationships of project works. The facilities were being and trust with the NOC. Relationships are built, so we did a lot of work with doing cost very important for both contractors and reviews on the EPC projects, helping with IOCs. You need to come here, set up a rep- internal audits, processes of the various resentative office, spend some money and companies. This market has now changed put good relationships people on the from a project market to operation and ground. And after two to three years, you maintenance. What most companies are may see the benefits. It is definitely a trying to achieve now is to reach efficiency three-to-five-year strategy. in terms of their operational and mainte- We frequently see new companies com- nance costs. We see a lot of facility main- ing in. We provide them with market intel- tenance companies coming in. QP and the ligence. We advise them in terms of who LNG projects are outsourcing their O&M are reliable partners. We help them identify functions to the facility maintenance com- where the opportunities exist. We place a panies. But how much can you afford to lot of emphasis on attracting people to outsource, how much can one afford to let Qatar to look at the market. We are very go? You may lose your expertise; you may active in organizing special receptions and lose your maintenance history of assets. events. Every company that comes to our We assess this as a risk they are taking. doorstep is a potential client, so we invest Obviously, it is very cost-effective. But in in that relationship. 36 Dr. Mazen O. Hasna - Dean College of Engineering at Qatar University

Interview with: D r. Mazen O. Hasna – Dean, College of Engineering at Qatar University

Focus Reports: What was the vision behind the ing leadership among future Qatari engineers? creation of the college of engineering back in Dr. Mazen O. Hasna: The College has for many 1980? years placed outreach to high school stu- Dr. Mazen O. Hasna: Qatar is a country with dents as one of its top priorities. Through an economy that is mainly based on hydro- several initiatives, we have raised interest carbon. Engineers are known to be the main in the science and engineering field among players in this industry. It was very natural high school students in Qatar. Our Life is that a college of engineering should exist Engineering Program (LIEP) is one such ini- and that engineering education should start tiative that makes science and engineering in Qatar. The main vision in establishing the more interesting to Qatari youth and college was to support the economy and encourages their awareness of their role in main industry in Qatar. contributing to the country’s development. We partner with leading industrial compa- FR: What is the portfolio of academic programs nies in Qatar for their input and expertise that you have at the college of engineering, and to pass on to the students and provide tell us how significant is the college of engineer- hands-on experience to build their skills. ing among the Qatar University? Internships and on-site training is a very Dr. Mazen O. Hasna: It started in 1980 with important part of our programs - not only 4 programs, available only to male students do the students learn more about the area -- electrical engineering, mechanical engi- of the industry where they are interning but neering, civil engineering and chemical they also learn other important life and engineering. In 2003 it was opened to work skills such as leadership, organization, female students to pursue programs in sys- interpersonal communication, networking, tems engineering and computer engineer- and teamwork. ing. Today we offer eight undergraduate pro- We are not only growing skilled engi- grams, seven Master’s and twelve. In terms neers but responsible and resourceful indi- of numbers, the college of engineering is viduals who will lead Qatar’s future. Our ranked either 2nd or 3rd among the whole intake has increased as a result of the pro- university, with the College of Arts & Sci- grams we have been running. I can claim ences having the largest student population; that we were successful in raising the num- in terms of visibility, research, funding, ber of students enrolled in our engineering attraction, we are extremely strong and programs over the past few years. Engineer- leading within QU. ing is often viewed as a challenging discipline -- students tend to lean more towards FR: The main current issue in the industry is the business and arts disciplines. shortage of skilled people in the petroleum field. How is Qatar University willing to address this FR: How significant is research among Qatar issue in terms of training and how are you rais- University and how are you willing to contrib-

Dr. Mazen O. Hasna Dean College of Engineering at Qatar University 37

ute to the development of the oil and gas sector in the country through the research aspect? Dr. Mazen O. Hasna: Research is hugely impor- Our strength is that we are part of the tant to the academic environment of the college which is in line with the objectives of country’s first and only national the overall QU Strategic Plan. The College is university and stand at the heart of the committed to developing a strong research culture. We ensure that our programs country’s national identity. We are the engender research that seeks solutions to the needs and concerns of the wider com- main providers of engineers to the munity. This is very important because we are aware of our role in contributing to the Qatar labor market. social and economic development of Qatar. Our commitment is further reflected in are part of the country’s first and only the successes we have enjoyed in award national university and stand at the heart grants from Qatar University and Qatar of the country’s national identity. We are National Research Fund, and the oil and gas the main providers of engineers to the industry for our research initiatives. Cur- Qatar labor market. Our graduates are rently we are managing more than 100 mil- sought-after by the leading companies in lion dollars for QNRF-awarded projects. Qatar and some are returning to the college Based on our current capacity and the needs as faculty to reenergise its culture of quality of the country, there are two areas that we and excellence. We do not view Texas A&M identified in terms of growth and potential: as a competitor; collaboration is important renewable energy, and alternative sources to us as it is added value to what we do. We of energy. At the college, we set up a lab for renewable energies because we saw that it have several collaborative research and aca- is an area of high potential in Qatar and demic projects with Texas A&M and envis- worldwide. age that we will continue these collabora- Today, we house Chairs sponsored by QP, tions. Rasgas, Qatar Gas, Maersk Oil, Oryx GTL, We are very confident that we are doing and Kahramaa-Siemens. This has been a well from an academic point of view. We are very good scheme and we expect to add also very proud of the international accred- more Chairs to our portfolio in the near itation awarded the college by ABET future. FR: What is your assessment for the future of For the long-term, we will review our programs and hone our research targets to education in Qatar? reflect those expressed in the national Dr. Mazen O. Hasna: We are guided by the vision 2030. We are seeing a number of University’s Strategic Plan which is aligned areas such as the fertilizer and petrochem- to the National Vision 2030 and the National ical industry where research and knowledge Development Strategy 2011-2016. The coun- can be created and we can contribute to this. try’s development continues on a fast track and the World Cup 2022 is also driving the FR: What would you define as the college of engi- momentum. As the college of the first and neering strengths? Your main competitor is only national university, we will continue Texas A&M : do you compete or complete each to be among the leading contributors and other? participants to where the country is head- Dr. Mazen O. Hasna: Our strength is that we ing. 38

PAst reports 39 Company index

Chevron:...... 10, 11, 14 QAFCO: ...... 10, 16, 17

Chubu Electric Power:...... 11 Qatar Petroleum: Dolphin:...... 12, 14, 24, 25 ...... 6, 7, 8, 16, 19, 24, 26, 29, 31, 33

Ernst & Young:...... 11, 34 Qatar University:...... 14, 25, 36, 37

ExxonMobil:...... 7, 26, 27 Qatargas:...... 6, 7, 11, 20, 21, 22, 25

GDF:...... 14, 28, 29 RasGas:...... 7, 25, 37 Kahraama:...... 12, 14, 28, 29, 37 Sasol:...... 8 Minister of Energy and Industry: ...... 6, 16, 17, 24 Shell:...... 8, 19, 22, 23, 33, 34

ORYX GTL: ...... 8, 18, 25, 37 Texas A&M:...... 14, 25, 37

PwC: ...... 7, 14, 32, 33 Total:...... 10, 24