1

Committed to Excellence: From to the World 2

In the Name of Allah, the Most Gracious, the Most Merciful

Printed in October 2013 2

His Highness Sheikh Tamim Bin Hamad Al-Thani Emir of the State of Qatar 4 5

Contents

Board of Directors 6 Refining 60 Message from the Chairman 8 QP Refinery 60 2012 Highlights 10 Laffan Refinery 62 Key Consolidated Financial Information 14 Oryx GTL 63 Administration Directorate 20 Pearl GTL 64 Human Resources Department 20 Petrochemical Industries 66 Corporate Training Department 21 Qatar Fertiliser Company (QAFCO) 66 Medical Services Department 22 Qatar Melamine Company 68 General Services Department 22 Qatar Petrochemical Company (QAPCO) 69 Organization & Systems Department 23 Qatar Fuel Additives Company (QAFAC) 71 Energy & Industry Sector’s Qatarization Unit 23 Qatar Vinyl Company (QVC) 72 HSE Regulations & Enforcement Directorate 24 Qatar Chemical Company (Q-Chem) 73 Information and Communication Technology 28 Ras Laffan Olefins Company Ltd. (RLOC) 74 Technical Directorate 32 Qatofin Company Limited 75 Crude Oil and Natural Gas 36 Seef Limited 75 Onshore Fields () 36 Industrial Cities 76 Offshore Fields 41 Industrial City 78 Exploration and PSA Oil Development Activities 43 Ras Laffan Industrial City 80 North Field 46 Other Industries and Supporting Services 82 Al-Khaleej Gas Project (AKG) 46 Gulf Helicopters Company 83 Barzan Gas Project 46 Company 86 Dolphin Project 47 Qatar Plastic Products Company (QPPC) 87 Drilling Department 48 Qatar Aluminium (Qatalum) 89 Halul Island 49 International Ltd. (QPI) 90 LNG 50 Gulf Drilling International Ltd. (GDI) 92 Operating Company Ltd. 50 Financial Report 94 RasGas Company Limited 54 Qatar Petroleum Investment Portfolio 101 NGL and Local Gas 56 QP Gas Operations 56 6 7

Board of Directors

HE Dr. Mohammed Bin Saleh Al-Sada Minister of Energy and Industry Nasser Khalil Al-Jaidah Saad Sherida Al-Kaabi CEO Director Qatar Petroleum Oil & Gas Ventures, International (QPI) Qatar Petroleum Member Member

Chairman & Managing Director of Qatar Petroleum

Hamad Rashid Al-Mohannadi CEO, RasGas Fahad Hamad Al-Mohannadi General Manager Qatar Electricity & Water Company (QEWC) Member

Deputy Chairman

Khalifa Abdulla Al-Sowaidi HE Essa Hilal Al-Kuwari Managing Director President Qatar Fertiliser Company Qatar General Electricity (QAFCO) & Water Corporation (Kahramaa) Member Member 8 9

Despite numerous challenges and Qatar is also reinforcing its In its constant efforts to fulfill the Ensuring sustainability and Message from the global economic difficulties, Qatar position as the world’s largest country’s development strategy establishing excellence take these is looking forward to increased LNG producer with its ability to for its industry and infrastructure, challenges to a new level, but we are development and higher prosperity engage in new long-term sales Qatar Petroleum has engaged in a quite confident that these building buoyed by the inspiration of its and purchase agreements with number of cooperation programs, blocks assembled year after year will Chairman leaders and the aspirations of its customers across the globe. organized several world scale contribute to a bright future for the people. events, and established research State of Qatar, and will ensure The year 2012 was significant and technology programs with a continued prosperity in the The year 2012 witnessed continued and marked the sale of the first number of countries and renowned years ahead. progress in a number of projects commercial shipment of normal international companies. These that were initiated in order to meet paraffin from Pearl GTL, the world’s efforts were aimed at developing Qatar’s future needs. Construction largest gas-to-liquids plant. This is the energy sector, improving the Dr. Mohammed Bin Saleh Al-Sada works for the Barzan Gas Project an important milestone and a major efficiency of its installations, and Minister of Energy and Industry started in November 2011 and step on the road to a diversified optimizing the use of its natural Chairman & Managing Director Qatar is entering a new phase 50% of the work was completed as Qatari industrial base. The year resources. of Qatar Petroleum in its economic development of December 2012. The plant will also witnessed the signing of a with great determination. Its provide natural gas to complement Memorandum of Understanding Achieving those goals goes hand hydrocarbons revenues have current and future infrastructural with Mowasalat to study the in hand with the development of maintained impressive growth developments such as power and feasibility of introducing compressed the main driver of this success –the rates while its sustainable desalination plants, and the new natural gas (CNG) as fuel for public Qatar Petroleum workforce. Both development efforts move airport and seaport. Barzan transport vehicles in Qatar, which in Qatar’s and QP’s success would forward with great resolve will also secure efficient energy turn led to the inauguration of the not have been possible without and dedication. Revenues are supplies for the future as the country pilot compressed natural gas (CNG) the dedicated and sincere efforts being reinvested in strategic prepares itself to host the FIFA World fueling station in the New Industrial of our employees, partners and projects that help create a solid Cup in 2022 and aims to meet the Area. contractors, who are working hard foundation for greater economic National Development Strategy to make Qatar Petroleum a truly The past year also saw the launch growth and expansion. (2011-2016) requirements. international player in the oil and of the first Sustainable Development gas Industry. Industry Report (SDIR) of Qatar’s energy and industry sector. QP The journey to success and the also extended its partnership and prosperity of our nation is full of cooperation with the World Bank- challenges which we are ready to led Global Gas Flaring Reduction meet. Under the leadership of His (GGFR) initiative to reduce the Highness the Emir, Sheikh Tamim flaring of gas associated with oil Bin Hamad Al-Thani, we are already and gas production as a concrete building milestones on the way to contribution to improving energy achieving Qatar’s National vision efficiency and mitigating climate as articulated by His Highness the change. Father Emir, Sheikh Hamad Bin Khalifa Al-Thani. 10 11

2012 Highlights

January February March May 3 January - His Excellency Dr. Mohammed bin 9 February - H.E. Dr. Al-Sada and H.E. Mr. 22 March - QP and Shell announced the sale of the 7 May - QP and Total signed a research and Saleh Al-Sada, Minister of Energy and Industry and Sukwoo Hong, Minister of Knowledge Economy of first commercial shipment of normal paraffin from technology project agreement aimed at increasing Chairman & Managing Director of QP, launched the the Republic of Korea, signed a Memorandum of the Pearl GTL plant, the world’s largest gas-to-liquids hydrocarbons production in Qatar by significantly first ever Sustainable Development Industry Report Understanding (MOU) on cooperation between the facility. GTL normal paraffin is an alternative premium improving the efficiency of acid stimulation in (SDIR) of Qatar’s energy and industry sector. two countries on matters related to industry, energy feedstock for detergent production. carbonates oil and gas fields. and natural resources. 29 May - QP and signed a 13 February - QP and Qatar Petrochemical Memorandum of Understanding (MOU) covering the Company (QAPCO) signed a Heads of Agreement April general framework and governing principle of their (HOA) for the development of a new, large-scale continuous cooperation in various areas. petrochemical complex in Ras Laffan Industrial City. 14 April - H.E. Dr. Al-Sada inaugurated the sixth The project is scheduled for completion in 2018. edition of the annual QP Environment Fair, which showcased the environmental programs and initiatives of QP directorates and departments, the July corporation’s subsidiaries and joint ventures, as well as other industry stakeholders. 2 July - QP and Shell agreed to initiate the next project definition phase of Front End Engineering and 15 April - QP and Mowasalat signed a Design (FEED) for a large-scale petrochemicals project Memorandum of Understanding (MOU) to jointly in Ras Laffan Industrial City. study the feasibility of introducing compressed natural gas (CNG) as a fuel for public transport 25 July - QP, representing the Qatari government, vehicles in Qatar. signed an agreement authorizing PetroChina Investment to acquire 40% of the exploration and 12 January - H.E. Dr. Al-Sada signed the production rights from GDF Suez Exploration Qatar engineering, procurement and construction (EPC) under its Qatar’s Block 4 Exploration and Production contract with Samsung Engineering for the Diesel Sharing Agreement (EPSA). Hydrotreater (DHT) Project of the Qatargas-operated Laffan Refinery. 14 February - QP organized various sports activities in all its operational areas in line with the State of Qatar’s first-ever National Sports Day. 12 13

September December 3 September - H.E. Dr. Al-Sada awarded a total 24 November - H.E. Dr. Al-Sada inaugurated the 4 December - The Ministry of Energy and Industry, 12 December - H.E. Dr. Al-Sada signed a long- of seven companies from QP’s joint ventures and pilot compressed natural gas (CNG) fueling station in in partnership with the Qatar National Food Security term (LNG) Sales and Purchase contractors as winners of the second Qatar Oil & Gas the New . Program (QNFSP), signed a Letter of Interest (LOI) Agreement (SPA) between Qatar Liquefied Gas Industry Safety Excellence and Innovation Awards. signifying the State of Qatar’s participation in the Company Limited 3 and PTT Public Company Limited 26 September - H.E. Dr. Al-Sada signed a Global Atlas for Solar and Wind Energy project of the of Thailand. International Renewable Energy Agency (IRENA). new long-term Liquefied Natural Gas (LNG) Sale 17 December - Under the patronage of H.E. Dr. Al- Agreement between Qatargas Operating Company 4 December - QP and the World Bank-led Global Sada, QP’s Offshore Operations celebrated “Offshore Limited and Kansai Electric Power Company Gas Flaring Reduction (GGFR) partnership agreed Day 2012” in Halul Island to mark its 50 years of Incorporated (KEPCO) of Japan. to extend their cooperation in reducing the flaring success in operating, producing and exporting of gas associated with oil and gas production as a hydrocarbons from Qatar’s offshore fields. October concrete contribution to improving energy efficiency and mitigating climate change. 11 October - H.E. Dr Al-Sada signed a new long-term Liquefied Natural Gas (LNG) Sales and 11 December - His Highness Sheikh Tamim bin Purchase Agreement (SPA) between Qatar Liquefied Hamad Al-Thani, the Emir, officially inaugurated the Gas Company Limited (3) and Chubu Electric Power QAFCO 6 Project in Mesaieed Industrial City, thus Company Inc. of Japan. scaling up the total urea production output of Qatar Fertiliser Company (QAFCO) to 5.6 million tonnes per year. November 26 November - H.E. Dr. Al-Sada launched the 5 November - QP and the College of North Qatar Energy and Industry Sector Sustainability Report Atlantic-Qatar (CNA-Q) signed a Memorandum 2011 on the sidelines of the Qatar Sustainability Expo of Understanding (MOU) covering the general 2012. framework and governing principles of their cooperation related to the training and professional development of QP staff. 20 November - His Highness Sheikh Hamad bin Khalifa Al-Thani, the Father Emir, officially inaugurated Qatar Petrochemical Company’s (QAPCO) third low-density polyethylene plant (LDPE 3) at a ceremony in Mesaieed Industrial City. 14 15

Qatar Petroleum Key Consolidated Financial Information For the year ended 31 December 2012

Sales Revenue Five-year comparison - QR Millions Capital Expenditures Five-year comparison - QR Millions

330,329 36,791 35,350 289,179 32,854 26,390 188,015 24,455 168,488 118,141

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Net Income Five-year comparison - QR Millions Total Assets Five-year comparison - QR Millions 114,137 494,388 88,862 367,551 308,897 54,567 282,308 55,800 246,034 35,207

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

Net Cash Flow from Operations Five-year comparison - QR Millions QR Millions Dec. 2012 Dec. 2011 Dec. 2010 Dec. 2009 Dec. 2008 132,022 117,348 Sales Revenue 330,329 289,179 188,015 118,141 168,488

Net Income 114,137 88,862 54,567 35,207 55,800 58,560 58,517 40,864 Net Cash Flow from Operations 132,022 117,348 58,517 40,864 58,560 Capital Expenditures 26,390 32,854 24,455 35,350 36,791

2008 2009 2010 2011 2012 Total Assets 494,388 367,551 308,897 282,308 246,034 16 17

Country Effective Percentage Subsidiaries of QP Subsidiaries of Registration Holding 2012

Al Koot Insurance and Reinsurance Company SAQ Qatar 10.00% Qatar Petroleum (QP) is a state-owned public corporation established by Emiri Decree No. 10 in 1974. It is responsible for all phases of the oil and gas industry in the State of Qatar. Al Shaheen Energy Services Limited UK 100.00% The principal activities of QP, its subsidiaries and joint ventures are the exploration, production, local and international sale Al Shaheen Energy Services L.L.C. USA 100.00% of crude oil, natural gas and gas liquids, refined products, synthetic fuels, petrochemicals, fuel additives, fertilizers, liquefied natural gas (LNG), steel and aluminium. Al Shaheen Distribution Limited Q.S.C. Qatar 100.00% The operations and activities of QP and its affiliates are conducted at various onshore locations, including Doha, Dukhan and Gulf Helicopters Company Q.S.C. Qatar 10.00% the Mesaieed and Ras Laffan Industrial Cities, as well as offshore areas, including Halul Island, offshore production stations, drilling platforms and the North Field. Qatar Steel Company Limited Qatar 51.00% QP’s strategy of conducting hydrocarbon exploration and development are through Exploration and Production Sharing Qatar Petroleum LNG Services (QG II) Limited Qatar 100.00% Agreements (EPSA) and Development and Production Sharing Agreements (DPSA) concluded with major international oil and gas companies. Qatar Petroleum Gas Trading (QG II ) Limited Qatar 100.00% Thriving on a spirit of enterprise, each of our joint ventures is underpinned by transparency, innovation and high standards of Qatar Terminal Company Limited Qatar 100.00% quality and service. At Qatar Petroleum, we are committed to one thing above all: Excellence. Amwaj Catering Services Company Limited Qatar 10.00% QPI China Limited Cayman Islands 100.00% Country Effective Percentage Subsidiaries of Registration Holding 2012 QPI China (North) Limited Cayman Islands 100.00% QPI China (South) Limited Cayman Islands 100.00% Industries Qatar Q.S.C. Qatar 51.00% QPI China North East Limited Cayman Islands 100.00% Qatar Petroleum Qatar Gas 3 Limited Qatar 100.00% QPI Global Ventures Limited Cayman Islands 100.00% Qatar Holding Intermediate Industries Company Limited Qatar 100.00% QPI Mauritania Limited Cayman Islands 100.00% Qatar Petroleum International Limited Qatar 100.00% QPI Vietnam, Limited Cayman Islands 100.00% Al Shaheen Holding Q.S.C. Qatar 100.00% QPI Upstream Limited Cayman Islands 100.00% Qatar Petroleum Qatar Gas (4) Company Limited Qatar 100.00% QPI Management International Limited Cayman Islands 100.00% Gulf International Services Q.S.C. Qatar 10.00% QPI Egypt Limited Cayman Islands 100.00% QP Ras Gas (III) Limited Qatar 100.00% QPI Libya Limited Cayman Islands 100.00% QPI Congo Limited Cayman Islands 100.00% Country Effective Percentage Joint Ventures of Registration Holding 2012 QPI Limited Cayman Islands 100.00% QPI Philippines Limited Cayman Islands 100.00% Qatar Liquefied Gas Company Limited Q.S.C. Qatar 65.00% QPI Gabon Limited Cayman Islands 100.00% Ras Laffan Liquefied Natural Gas Company Limited Qatar 63.00% Ras Laffan Liquefied Natural Gas Company Limited (II) Qatar 67.05% Ras Gas Company Limited Qatar 70.00% Qatar Vinyl Company Limited Q.S.C. Qatar 68.22% Qatar Chemical Company Ltd. Q.S.C. Qatar 51.00% Qatex Limited Qatar 51.00% Oryx GTL Limited Qatar 51.00% Country Effective Percentage Qatargas Upstream Joint Venture (Unincorporated) Qatar 65.00% Joint Ventures of QP Subsidiaries of Registration Holding 2012 Qatar Liquefied Gas Company Limited (II) Q.S.C. Qatar 67.50% Al Shaheen GE Services Company Qatar 50.00% Qatar Gas Operating Company Limited Qatar 70.00% Al Shaheen Weatherford Q.S.C. Qatar 50.00% Astad Engineering Consulting and Project Management Q.S.C. Qatar 50.00% Gulf Drilling International Limited Qatar 7.00% Qatar Chemical Company Limited (II) Qatar 51.00% Qatar Fertiliser Company Q.S.C . Qatar 38.25% Ras Laffan Olefins Company Limited Q.S.C. Qatar 39.45% Qatar Fuel Additives Company Limited Qatar 25.50% Laffan Refinery Company Limited Qatar 51.00% Qatar Liquefied Gas Company Limited (3) Qatar 68.50% Qatofin Company Limited Q.S.C. Qatar 25.97% Qatar Liquefied Gas Company Limited (4) Qatar 70.00% Gasal Q.S.C. Qatar 30.50% Qatar Petrochemical Company Limited Qatar 40.80% Qatar Aluminium Company Limited Qatar 50.00% Ras Laffan Liquefied Natural Gas Company Limited (3) Qatar 70.00% Barzan Gas Company Limited Qatar 93.00% Seef Limited Qatar 80.00% 18 19

Country Effective Percentage Country Effective Percentage Other Investments of Registration Holding 2012 Joint Ventures of of Registration Holding 2012 AKG Holding Limited Bahamas 12.5% Arab Shipbuilding and Repair Yard Company Bahrain 18.80% QP Subsidiaries’ Subsidiaries South Hook Gas Company Limited UK 70.00% Arab Maritime Petroleum Transport Company Kuwait 14.80% South Hook LNG Terminal Company Ltd. UK 67.50% Arab Petroleum Investment Corporation Saudi Arabia 10.00% Adriatic LNG Terminal Limited Italy 22.05% Arab Petroleum Services Company Libya 10.00% Egypt Refining Company Egypt 27.95% Arab Petroleum Pipelines Company Egypt 5.00% Golden Pass LNG Terminal USA 70.00% Qatar Electricity & Water Company Qatar 11.20% Golden Pass Pipeline USA 70.00% Ras Laffan Power Company Qatar 10.00% Golden Pass Products LLC USA 70.00% Qatar Fuel QSC (Woqod) Qatar 40.00% Golden Pass LNG Marine Services USA 70.00% Nakilat Agency Company Qatar 5.00% Qatar Plastic Products Company WLL Qatar 13.59% Mesaieed Power Company Qatar 20.00% Qatar Melamine Company (S.A.Q) Qatar 62.95% Qatar Navigation QSC (Milaha) Qatar 9.20% Gulf Formaldehyde Company (Q.S.C.C.) Qatar 26.78% Ras Girtas Power Company Qatar 15.00% PII Group Limited (UK) UK 50.00% SOLB Steel Company (formerly South Steel Co) Saudi Arabia 15.80% PII North America LLC USA 50.00% Qatar Metals Coating Company Qatar 25.50% Total E&P Mauritania Cayman Islands 20.00% Gulf United Steel Holding Company Bahrain 12.80% Arab Refining Company Egypt 36.68% QPI & Shell Petrochemicals (Singapore) PTE Limited (“QSPS”) Singapore 49.00% Long Son Petrochemical Company Ltd. Vietnam 25.00% Others *

*These represent various investments mainly in Qatar Exchange and the effective QP interest is less than 5%.

Country Effective Percentage Subsidiaries of of Registration Holding 2012 QP Subsidiaries’ Subsidiaries QTL U.S. Holding Corporation, Inc. USA 100.00% QTL Hungary Financing KFT Hungary 100.00% QTL Italy Branch Italy 100.00% QTL U.S. Terminal L.L.C. USA 100.00% QTL U.S. Service Co. L.L.C. USA 100.00% Qatar Chemical Company Distribution Company Limited Q.S.C. Qatar 51.00% Qatar Chemical Company II Distribution Company Limited Q.S.C. Qatar 51.00% Qatar Steel Company FZE Dubai Dubai 51.00% Qatar Steel Industrial Investment Company S.P.C. Qatar 51.00% Qatar Steel Rebar Fabrication Facility S.P.C. Qatar 51.00% South Industries Company (KSA) Saudi Arabia 51.00% 20 21

Corporate Training Administration Department The Corporate Training Department of QP’s technical departments. Of continued to meet the higher the remaining 239 trainees, 204 education needs in the energy are enrolled in the Tailor Made and industry sector through the Program (TMP) and 35 in the Clerical Directorate sponsorship of nationals studying at Preparation Program (CPP). local and overseas universities. Out QP employees continued to enhance of 401 active students taking up The Administration Directorate strives to provide quality their competencies through the courses mainly in the engineering professional training programs service to support QP’s operations in the areas of Human discipline, 141 university graduates conducted in-house, within Qatar joined various QP departments Resources, Qatarization, Corporate Training, Medical or overseas. A total of 17,361 during the year. The programs training needs were met in 2012. being studied include engineering, Services, General Services and Organization and Systems. Additionally, QP employees also petroleum engineering, and completed 2,269 e-learning courses The directorate’s customers include QP employees and geology, sciences, business and a during the year. departments, QP-affiliated companies, and community range of other specialist fields. As part of QP’s strategy to increase The department continued to support to academic institutes residents in remote locations. review and improve its vocational in Qatar and to utilize the best Qatar Career Fair 2012 training programs to meet the educational resources within the industry’s requirements. The country in line with QP’s training overall duration of the Technician needs, the department signed Human Resources Preparation Program (TPP) was memorandums of understanding reduced without affecting the (MOUs) with Qatar Foundation, quality of training. Out of a total Department Qatar University and the College of The Human Resources (HR) The automation of HR e-services of 846 vocational trainees, 607 are North Atlantic-Qatar (CNA-Q). Department assisted and enabled continued with 20 more services taking up the TPP, which is geared QP operations to implement the computerized to provide a faster, to meet the Qatarization needs The department also expanded 12-hour shift under the 4 x 4 work more efficient service for employees. its training infrastructure by cycle for onshore operational staff, Various HR awareness workshops commissioning and operating in addition to the existing 8-hour were also conducted for all line the Dukhan Learning Center and shift under the 5/2 work cycle. departments to enhance the it enhanced its training delivery The new cycle is expected to have efficiency of HR processes. The areas through advanced workshops and a positive impact on employee covered in these workshops included featured classrooms, enabling the productivity, reduced commuting employee relations, professional delivery of Technical and Further time and safety. development, manpower supply and Education (TAFE) Certification demand planning, and performance programs and professional training Talent management was further appraisals. courses in line with international enhanced through a reduction in standards. the recruitment cycle time and an improved induction program. This program puts increased focus on HSE (Health, Safety and Environment). A new employee “on boarding” web page is also under development. 22 23

Medical Services Organization & Systems Department Department The Medical Services Department highest clinical standards, and it also The Organization & Systems the Strategic Planning & Policy continued to provide primary care, embarked on a primary healthcare Department is mandated to Directorate. It also finalized the occupational health, emergency accreditation process as part of handle the management of scope of work (SoW) for a call-off and support services for over improving quality and enhancing organizational structure changes, contract for fire fighting operations, 164,000 beneficiaries served by safety. assessment of manpower contracts, and it facilitated the transfer of QP’s healthcare clinics in Doha, implementation of business process the Oil Spill Department from The department successfully held Ras Laffan, Mesaieed, Dukhan and management, development of the Corporate Health, Safety and the first QP Occupational Health offshore. Additionally, healthcare inter-departmental procedures, Environment Department (SQ) to the Conference in March 2012, and services were established in Ras development of terms of reference Marine Department (MR). it introduced employee health Laffan and Mesaieed Ports to for corporate committees, promotion and awareness programs, In addition, the department finalized control points of entry into Qatar in development and maintenance of including those on mental health, the merger of telecommunication compliance with regulations of the directorate/department mandates, weight loss and diet control. units in Mesaieed Industrial City World Health Organization (WHO). development and review of job and Refining Directorate with the The provision of dental services in As part of its corporate social descriptions, and the establishment Information and Communication Ras Laffan and the formation of responsibility (CSR) initiatives, of enterprise frameworks for Technology (ICT) Department as a Medevac team to provide cover the department launched organizational excellence and well as the merger of Offshore and for all offshore locations were also several projects, including the change management. Dukhan Production laboratories. The introduced. Disposal of Unwanted Medicines In 2012, the department completed Organization & Systems Department Properly (DUMP) in Mesaieed. The Medical Services Department the merger of two industrial also introduced scheduled cyclical Furthermore, training was provided continued with its emphasis cities under one directorate, and reviews of mandates, terms of to undergraduate and Pharm-D on preventive healthcare and it also handed over its Enterprise reference and inter-departmental students from the College of established preventative measures Risk Management function to procedures. Pharmacy of Qatar University and for chronic disease management. Arab Board students from the It achieved its goal to ensure Supreme Council of Health. that all healthcare professionals are competent to practice to the Energy & Industry Sector’s Qatarization Unit The energy and industry sector’s In May, the Annual Qatarization General Services Qatarization Unit held formal Review Meeting, which is chaired by meetings with sector companies His Excellency Dr. Mohammed Bin Department and reviewed their Qatarization Saleh Al-Sada, Minister of Energy The General Services Department is built-up space is being developed plans, strategic human capital and Industry, provided an overview mandated to manage and control for QP’s Corporate Headquarters. issues, training strategy, of Qatarization in the sector. In the delivery of general services to All departments will be located Qatarization websites and CSR attendance were the chief executives all areas and locations under the within nine towers. It is estimated initiatives in line with the Qatar and senior administration and control of QP in Doha. Among the that the completion of the interior National Vision 2030 and the human resources managers of each department’s responsibilities are the construction and moving-in date will National Development Strategy. participating company, education provision of housing and facilities be by 2017. and government partners, and (office) services and maintenance, The unit also continued building Six cafes were established in 2012 selected guests. A special theme of transport services, recreation strong relationships with its by the department to provide the meeting covered “Implementing services, and retention of non- education partners. In addition, light snacks and beverages to QP the National Development Strategy” technical records for all areas. it successfully held five strategic employees at their workplace. and four senior executives from human capital planning workshops Currently, QP departments and Qatar-based organizations shared that were custom designed and facilities are distributed across their experiences in this regard. The conducted by the Chartered different locations in Doha. The fourth Annual Qatarization Award Institute of Personnel and General Services Department is the recipients were RasGas, QAPCO, Development (CIPD) from the UK. custodian for 13 office buildings Kahramaa, Qatargas, ExxonMobil, Initiated and organized by the at various locations in Doha and is and Dolphin Energy. Qatarization Unit and sponsored effectively managing these facilities. by Qatar Petrochemical Company In order to relocate all office-based (QAPCO), this was a first for the Doha staff to a common location, energy and industry sector. approximately 629,000 m² of 24 25

Our Mission HSE Regulations “To ensure health, safety and environmental risks are appropriately regulated and assure compliance with said regulations to minimize HSE & Enforcement risk exposure to people, environment and the industry.” Key Objectives • To ensure that all operators within the sector are in compliance with Directorate the laws of Qatar and abiding by their obligations; • To improve sustainable development (SD) performance via the Sustainable Development Industry Reporting and Award scheme; The HSE Regulations & Enforcement Directorate (DG) • To foster a culture of HSE and SD excellence across the oil and gas sector; was established to undertake the tasks entrusted • To introduce best international HSE regulatory practices and to Qatar Petroleum under the provisions of Decree framework; Law No. 4 of 1977 to follow up the implementation • To assist national bodies in formulating sound HSE and SD regulatory policies and improve monitoring on a national basis. of Law No. 8 of 2004 and to undertake the tasks, Launching ceremony of Qatar’s Energy and Industry Sector Sustainability Report functions and responsibilities assigned to Qatar Major Regulatory/ Petroleum and the Ministry of Energy and Industry Legal Activities during 2012 as executive bodies in implementing the provisions • Signed a Memorandum of Understanding (MoU) with Qatar of the Environment Protection Law promulgated by University; Decree Law No. 30 of 2002. The directorate is also • Prepared 24 Periodic Review Reports related to HSE treaties, protocols and conventions and guidelines for industry guidance and mandated to control the implementation of, and compliance; compliance with, the laws relating to health, safety • Conducted legal review of HSE guidelines for industry and general advice. and environment as regards petroleum operations and to prepare for emergency situations and Major HSE Activities evaluate studies on the environmental impact of • Drafted the HSE Technical framework and its associated regimes and existing petroleum operations. circulated them to shortlisted stakeholders for consultation with the idea of application across the sector in the very near future; • Conducted inspection visits to 29 industrial sites to ensure that process safety was in line with the HSE requirements of national legislation and best industry practices; • Developed a heat stress database and collected statistics and found 47 cases of heat stress during the year and developed ways to reduce such incidents; • Developed Occupational Health Strategies with various operators and carried out assessments across the sector’s medical facilities with a focus to improve their performance; • Prepared Emergency Response Preparedness (ERP), Ballast Water Management Guidelines and Mutual Aid & Emergency Drill Guidelines and issued these to industry for implementation; and • Conducted compliance assessment of MIC operators. 26 27

H. E. Dr. Al-Sada presenting the first copy of Qatar Energy and Industry Sector Sustainability Report to H. E. Abdulla bin Hamad Al-Attiyah Sustainability Development Industry Reporting (SDIR) Awards presentation ceremony President of the Administrative Control & Transparency Authority Major Sustainable Development Future Plans & Stakeholder Engagement The HSE Regulations & Enforcement Directorate will continue to: • Completed the 2011 Qatar Energy & Industry Sector • Carry out industry supervision in order to minimize HSE risks, produce Sustainability Industry Report, which showcased the sector’s the Sustainable Development Industry Report annually, recognize contribution toward climate change challenges, and organized operators’ performance via the award scheme on the basis of their its launching ceremony at the Qatar Sustainability Expo ahead of sustainable development reporting, and implement programs that UNFCC COP 18; address the Qatar National Vision 2030 and the NDS 2011-2016; • Launched a video representing the energy and industry sector’s • Issue technical regulations relating to safety in the oil and gas sector; initiatives on climate change and GHG emissions reduction at and COP 18 and the Qatar Sustainability Expo. and received wide • Contribute to plans of action to raise the level of performance in the acclaim nationally, regionally and internationally for the video; areas of health, safety and environment in the sector, including the • Represented the energy and industry sector at the Qatar assurance to investors and related entities involved in the financial, Sustainability Expo and organised presentations on climate human and economic domain in the oil and gas sector that their change by experts from academia and industry; resources are properly and safely monitored to a high level of professionalism. • Provided inputs during the COP 18 negotiations based on the National Development Strategy (NDS) 2011-2016 and UNFCCC- COP17 decisions; • Provided technical support to Qatar Petroleum in extending the partnership with the World Bank on the Global Gas Flaring Reduction Partnership (GGFR) and engaged with operators on capacity building to explore new avenues to reduce flaring across the industry; • Completed the requirements of the first monitoring period for the Al-Shaheen CDM Project and submitted its related reports for the second and third monitoring periods; and • Conducted workshops and industry events to improve the HSE and sustainable development capacity and knowledge sharing within the sector. 28 29

As part of the ICT Department’s evident in the absence of attack on strategic objective to optimize QP. The department engages with Information and ICT processes and ensure ICT users to bring about a heightened service availability and continuity, sense of user awareness of IT and the department has issued the information security incidents, and Communication release and deployment process, the department is receiving and which is integrated with the acting on valuable feedback. project management and change The ICT Department has been fully management processes. The Technology (ICT) engaged with ictQATAR to ensure purpose of the process is to a roadmap to compliance with a coordinate releases with different law that will soon be introduced, scopes, complexities and degrees such as the Critical Information of risk. This ensures that all releases Infrastructure Protection (CIIP). As are effectively deployed into a live the underlying policies, manuals QP effectively utilizes its information and environment so that reliability of and standards from ictQATAR are hardware, software and service communication technology system and services aligned with industry best practices, components is maintained. through the corporation’s business value chains in the department will continue on its In 2012, regional oil and gas journey of improvement to ensure the exploration, production, transport, refining and companies including those in Qatar full compliance. were targeted by cyber security After extensive analysis and audit, marketing stages. The ICT Department’s mission is to attacks. The motivation was the SAP AG Company has certified unknown but critical operations enable QP’s vision by capitalizing on ICT capabilities QP ICT SAP Support Competency were crippled and the business Centre as a SAP-certified Customer outage period was relatively long and resources to maximize business benefits and Center of Expertise (CCOE). QP has compared to regular attacks. The achieved scores within the best 25% address future opportunities and challenges. ICT Department has been working CCOE’s around the world. Also, proactively to ensure that the IT according to the report, QP ICT environment is best protected from scored 93% on Quality, with 95% as these types of attacks and this was its total score. The ICT Department’s activities can be categorised into two broad areas: business projects and technology initiatives. 30 31

Business Projects Technology Initiatives Vendor Portal & Round the Clock Self Service e-Registration Multimedia Service To reduce dependency on ICT resources and to ensure compliance To cater to different operational Phase II Program with ICT standard software lists, and business requirements, the Vendor e-Registration – The Phase This program is responsible for the the ICT Department has introduced ICT Department has extended its II System is currently used by direction, vision, and prioritization a self-service application that service desk operations from normal more than 2,000 companies. This of portal and multimedia initiatives allows users to install their required office hours to 24x7 operations. solution is designed to facilitate and projects related to the intranet software and applications remotely This was introduced to be in line the participation of all prospective and internet. In its continuous or to run the installation in the back with QP’s business operation vendors in QP tenders or to make efforts to develop the portal as the end without disturbing user activity hours and to support QP users them eligible to receive Requests ultimate one-stop shop that enables and without the need to raise who are on business trips across for Quotations as they register and information management, web requests to the ICT Department. This various time zones. Moreover, it obtain a QP SAP Vendor Code, a content management, collaboration has resulted in faster and when- allows continuous monitoring of mandatory requirement for the and transparency among all QP needed delivery of software with live systems to ensure minimum issuance of Requests for Quotations employees and stakeholders, minimum dependency on ICT staff. downtime and increase customer or Tender Documents by QP. the portal team implemented 19 satisfaction. department intranet websites. To By using this system, vendors measure the level of satisfaction of can keep their company’s details, users from different QP business including commercial registration, units, 20 online surveys have been Citrix updated as and when required to developed and published on the To increase productivity and avoid delays in the processing of QPNet portal. In the same direction, the availability of systems, the tenders, contracts, purchase orders the video streaming service has ICT Department uses desktop and payment-related matters. The been provided to make corporate virtualization solution (Citrix) implementation of this system has videos accessible as needed to save that transforms desktops and significantly reduced paper work time, increase productivity, promote applications into a secure on- and registration processing time. It knowledge sharing and effectively demand service available to any provides QP users with easy access improve communication among QP user, anywhere, on any device. to vendors’ data including the departments. nature of their business. The system also produces management reports regarding the registration status of new vendors. Port Management Information System The Port Management Information System (PMIS) offers significant benefits for the operations of the Mesaieed Port. These include enhancing the safety of vessel traffic at the port, maximizing product export and import capability and capacity, maximizing port revenue by optimizing the use of all port resources and facilities, improving business processes, and reducing and minimizing paperwork and manual processes. The system also reduces delays and waiting times at different operational steps such as vessel nomination, scheduling, pre-arrival activities, service requests, pilotage, berthing, shifting, cargo operations and inspections, through effective resource planning, scheduling, information sharing and others. 32 33

Over the last 20 years, there has been a gradual change and growth Oil & Gas- in the value, type, numbers and Related Mega Technical complexity of projects managed Infrastructure by the directorate as well as a significant increase in the number Projects of its customers. • Sulfur Recovery Upgrade (SRU) Directorate The key strategic projects managed Project at Mesaieed – Upgrade and implemented by the Technical the existing Sulfur Recovery Directorate in 2012 are as follows: QP’s Technical Directorate has been at the Unit with the installation of a new Acid Gas Enrichment Unit forefront of project activities in Qatar, managing (AGEU) and Tail Gas Treatment Unit (TGTU) as well as to and implementing capital projects for QP’s core upgrade the utilities to achieve business, major infrastructure projects for joint 99.5% of sulfur recovery. • Acid Gas Recovery Project (AGRP) venture developments, and infrastructure projects at Dukhan – Build two 14.5-km, for the State of Qatar. The directorate continues 30-inch pipelines and an Acid Gas Compression Unit with to pursue its mission to provide appropriate associated utilities to include off- site facilities at the Arab-D plant solutions and execute projects with special in Dukhan. adherence to safety, environment, health, quality, • Ras Laffan Port Expansion Project synergy and human capital development. Its – Expand the existing Ras Laffan Port to handle 77 million tonnes main objective is the successful execution of all per annum of LNG and other liquid products. capital projects in accordance with their scope of • Ras Laffan Common Cooling work, schedule and the agreed budget. Water Project Phase-II – Construct a centralized Common Cooling Water System for key consumers within Ras Laffan Industrial City. In Phase II, Category 1 and 2 have been commissioned, while Phase III is in progress. 34 35

• Qatar Petroleum District – This is

Onshore Projects Offshore Projects Significant QP’s iconic project that will house • High voltage network upgrade • National Security Shield (NSS) – Achievements/ the business hub and central at Dukhan; Provide a system for observation, headquarters of the corporation detection, decision making and Initiatives in 2012 in . • Glycol regeneration units at intervention to enhance the Dukhan; • Crude Oil Import / Export • Grading of Plots and Corridors security of all vital offshore assets Facilities and Beach Landing and the Construction of • Strategic Gas Transmission by installing eight new Sensor Valves at Halul – Upgraded the Associated Roads for Future Pipeline (SGTP twin 36” Tower Platforms (STPs) and system for enhanced operational Downstream Venture Industries pipeline); Forward Mounted Base Platforms flexibility; at Ras Laffan City – This project (FMBs). • 18” multi-product pipeline from • QP won the 2012 Geospatial is in accordance with RLC’s the QP Refinery to the Doha • Halul Island: World Forum Excellence Business Master Plan which depot (Abu-Hamour) for a multi- aims to provide an appropriate • Installation of new Internet Award in recognition of its product transfer system; foundation for the expanding Protocol (IP) based PA / GA, implementation of a geographic information system (GIS) project downstream industries at RLC. • Drainage system upgrade – QP CCTV and access control at QP Refinery in Mesaieed. Refinery; system for security and • Re-development of Bul Hanine operational requirements; fields and development of new • Replacement and construction onshore gas processing facilities • Integrated chiller, freezer, of new service berths at Ras Future QP Plans at Mesaieed – Total project is in laundry, dining and Laffan; a pre-FEED stage and is planned accommodation facilities; and Investments • Various infrastructure projects to be completed in December at Ras Laffan: West side roads, • Centralized industrial area, in the Petroleum 2022. Khalifa Street Phase II and new telecom building, and Infrastructure security gate, west side support security building and ring road service development, new extension, additional helipad Sector south side roads and grading of and landing strip at muster • Strategic Storage Tanks for corridors. point; the State of Qatar for 2015- • Desalination plant and potable 2030 – QP intends to establish water storage tanks; petroleum products storage facilities in the State of Qatar in • Power supply through 2 x 3 two phases to meet the demand Core, 132kV, submarine sub- during certain disruptions in sea power cables rated for 100 the normal supply of petroleum MW, 100 km each to Halul products. Island from Ras Laffan. 36 37

facilities for injection of North Field The production support activities gas into the Khuff Reservoir and comprise facilities for power water injection into the main oil receipt and distribution, potable Crude Oil and reservoirs of Arab C and Arab D and water distribution, a power Uwainat for pressure maintenance Station, workshop facilities and are also operated on a continuous a communication network in the basis in Dukhan. Dukhan Field. Natural Gas The Dukhan Field has about 330 In addition to the above production/ oil-producing wells, 220 water process facilities, various housing injection wells and 57 gas producers and recreational facilities are and injectors wells. According to the available in Dukhan and clubs, latest well status, the total number catering and security services are of wells in Dukhan is 753, and this also provided to Dukhan residents. includes all production, injection, observation, closed-in, top holes and abandoned wells. Dukhan Operations has storage Onshore Fields and export facilities at Mesaieed Terminal. The Terminal and Export Department receives stores, (Dukhan) schedules and exports crude oil and Fahahil North and Fahahil South. naphtha. Main Activities Khatiyah South is now a manned of Dukhan station. The Diyab manifold at the southern end of the field has no Operations process facilities and its total oil Dukhan is a large oil and gas production is sent to Jaleha station field extending over an area of for processing. Stabilized crude oil is approximately 80 kms by 8 kms and then transported through pipeline to is located about 80 kms to the west Mesaieed Port, which is about 100 of Doha. The Dukhan Field consists km east of Dukhan. of three sectors from north to south The actual annual production of the – Khatiyah, Fahahil, and Jaleha/ Dukhan Field is based on reservoir Diyab. The oil and gas produced management requirements. Other from the field are separated in four production facilities are related main degassing stations, namely to associated gas, non associated Khatiyah North, Khatiyah Main, gas, raw NGL production from Fahahil Main and Jaleha, all of associated gas, Arab D gas cap, and which are continuously manned. recycling plant to produce NGL and The unmanned satellite stations are condensate. In addition to these, 38 39

• The attainment of an integrated The development of the other two Marketing and Future Expansion management systems sectors, Fahahil and Jaleha/Diyab in Development Plans certification for the entire Dukhan, was carried out in stages, Dukhan Operations is scheduled starting with Fahahil in 1954 and Plans • A major project on the in 2013. It has coordinated then Jaleha in 1955. The Dukhan construction of an acid gas The main products for export from with Corporate Quality Power Station was commissioned in removal plant, which would the Dukhan Field are crude oil, and Management Systems 1958, and the Khuff non-associated supply sweet gas to Dukhan condensate, natural gas liquids Department in implementing gas reservoir was discovered in 1959 customers, is currently under (NGL) and stripped associated gas the following integrated at an average depth of 10,000 feet. construction and will be (SAG). management systems: In 1974, the Fahahil Stripping Plant commissioned in 2013. The was also commissioned to recover • Quality Management System The following projects are currently project has been awarded raw NGL from associated gas. In (QMS) – ISO 9001:2008, under construction or in progress to Petrofac, which is based 1976, the first development well in in Sharjah, UAE. Detailed in the area: an acid gas recovery • Environmental Management the Khuff reservoir was drilled and engineering and procurements plant, produced water re-injection System (EMS) – ISO eight Khuff wellhead treatment have been completed, and facilities, the Sweet Fuel Gas 14001:2004 plants were commissioned in stages Project, drilling of new wells and construction is now in progress. from 1978 to 1982. abandonment of unsafe wells. • Occupational Health & Safety • Powered Water Injection Phase Management System (OHSAS) To maintain reservoir pressure at VII will increase the capacity of Major civil infrastructure – BS OHSAS 18001:2007. both Arab C and Arab D reservoirs, development projects are also PS.1, PS.3 and PS.6 to 120,000 powered water injection was • QP has awarded the Dukhan presently being implemented in b/d, 120,000 b/d and 150,000 implemented in stages starting from Field Integrated Study (DFIS) Dukhan. Some of these projects b/d, respectively. 1989, with the last phase completed include the relocation of industrial to ExxonMobil to review the • The Sweet Fuel Gas Project, in 1998. Powered water injection at facilities outside of Dukhan, a various options for enhancing which is currently in construction the Uwainat reservoir was started in hazardous waste storage facility, an production of the remaining in- phase, will supply NF sweet gas 2009. extension building for the Dukhan place oil. The study is looking at as fuel to all Dukhan customers Management Building, the Dukhan the following options: The pressurization of the Khuff namely QP, QNCC, and Gulf Community College, Phases IX reservoir with the surplus North Field Cement Company (GCC). • Carbon Dioxide Injection and X of the housing projects, gas was started from 1992 with landscaping and beautification • The implementation of Phase • Pattern Flooding the commissioning of a compressor projects as well as other civic and II of the Dukhan Physical station in Fahahil area. • Water Alternating Gas recreational projects. Development Plan (DPDP) Injection (WAG) The Arab D Gas Cap Recycling comprises Phase IX and Phase X Plant, which processes 800 mmscfd of the Dukhan Housing Project, The final Enhanced Oil Recovery of Arab D Cap Gas and recovers Major Customers as well as the construction of (EOR) model will be selected 38,000 b/d of stabilized condensate the civic building and supporting after a pilot scale trial of each The following products from and 750 b/d of NGL, was infrastructure, utilities and option. commissioned in 1998. The residue Dukhan are distributed to various services within the Dukhan internal and external customers: gas is re-injected back into the same township. Also included in reservoir. A major project to upgrade • Crude oil is exported through the DPDP is the construction Historical the Arab D plant facilities to recover Mesaieed’s Terminal Operations of infrastructure, utilities and Background on C2+ Raw NGL (about 5600 t/d of Department and also supplied to services projects in the QP NGL) and supply to NGL-4 Project in the QP Refinery in Mesaieed. concession area. Dukhan Field Mesaieed was completed in 2003. • Condensates are sent to the QP • In addition to these, a new Development A major project for a gas lift Refinery in Mesaieed. Western District Hospital, which system to artificially raise the oil for The development of the Dukhan has been renamed as the Cuban enhancing production and increasing • Arab D NGL is supplied to NGL- Field has taken place in various Hospital, Zikreet, has been ultimate recovery from the field was 4 in Mesaieed. stages. The first well was drilled completed and inaugurated. The commissioned in 2003. • FSP Raw NGL is sent to NGL and administration of the hospital in 1939-1940, confirming the NGL 2 in Mesaieed. is provided by Hamad Medical presence of commercial quantities Corporation, and the hospital’s of oil in the area. Further work was • SAG is supplied to the Dukhan technical employees are from suspended due to World War II. Desalination Plant, Qatar Cuba. It has all departments, The development of the Khatiyah National Cement Company specialists and an Emergency sector was then started from 1947 (QNCC), QAPCO and QAFCO via Center, except a primary public onwards and the first oil was QP’s Gas Distribution System. health clinic. exported from the Mesaieed Port on 31 December 1949. 40 41

Major Achievements up to 2012 Offshore Fields

1 Drilling of the first well in Dukhan 1939/40 2 Shipment of the first crude oil from Dukhan 1949 Operations - Major 3 Discovery of non-associated gas in the Khuff reservoir 1959/60 Offshore Fields Achievements 4 Commencement of power water injection in Dukhan reservoirs for pressure maintenance 1989 QP operates two offshore 1. Achieved the lowest safety 5 Commissioning of the Arab D Gas Recycling plant to recover condensate and production stations, PS-2 and PS-3, incident frequency in the last six NGL from Arab D Reservoir Gas Cap 1998 which are located in the northeast years. Also, the result is in the of Qatar’s territorial waters. These top quartile of more than 40 6 Commissioning of NGL4/DKADU to recover 5600 t/d of NGL from Arab D Cap Gas 2003 production stations are located in benchmarked companies in the 7 Commissioning of the gas lift project 2003 the Maydan Mahzam (MM) and Bul oil and gas industry; Hanine (BH) fields. 8 Attainment of ISO 9001:2000 Quality Certification for the entire Dukhan Operations 2004 2. Held the 3rd Offshore Day in Both PS-2 and PS-3 platforms Halul in commemoration of 9 Central Office Building for Dukhan Operations completed 2005 produce crude oil, associated 50 years of Qatar’s offshore 10 Well Integrity Department established to ensure the safe operation of oil and gas wells 2009 gas and condensate. Oil with operations; condensate is piped to Halul Island 3. Three new producing wells 11 Completion of a new sewage treatment plant 2009 for storage and export. On the drilled with a potential of 1,300 other hand, the gas produced is 12 Completion of the Dukhan – Salwa Road 2010 b/d. In addition, seven producing primarily used to assist in lifting the wells were worked-over/side- 13 Installation of new dehydration units at FSP 2011 oil from the reservoirs, and it is also tracked with a potential of 8,000 utilized not only as station and Halul 14 Mesaieed tank farm upgraded, with the rehabilitation of tanks, construction of new tanks, b/d. Three appraisal wells for fuel gas but also as feedstock to increase in storage capacity and change in tank farm philosophy; multi-product berth in final Khuff, Arab C and Arab D were Mesaieed’s NGL facilities. stage of completion 2011 also drilled during the year; 15 Significant reduction in gas flaring achieved 2011 Major Customers 4. Commenced trial/evaluation of the FieldWare system for gas lift 16 Two new fire stations constructed and commissioned at Fahahil and Umm Bab 2011 QP’s major customers for the and production optimization on purchase of crude oil, gas and 17 Completion of the Cuban Hospital in Dukhan 2011 two wellhead jackets; condensate include Mitsubishi 18 Completion of additional offices, warehouses and laboratories 2011 Corporation, ExxonMobil, Total, 5. Four wells with high-risk 19 Commissioning of fiscal meter and meter prover for crude oil, NGL and condensates 2012 Cosmo, Marubeni, Itochu, and compromised integrity were others. restored as part of the above work-over programs; 42 43

Exploration and PSA Oil Development Activities 6. One wellhead jacket structure with well integrity issues Future Expansion Exploration/Appraisal Activities successfully decommissioned Plans QP seeks to increase the Production Sharing Agreements and demolished; hydrocarbon resources and reserves (EPSA) and Appraisal, Development MM and BH Fields: of Qatar through aggressive and Production Sharing Agreements 7. Upgrading of escape capsules at exploration and appraisal activity. (DPSA) with major international oil both PS-2 and PS-3 completed; 1. BH field redevelopment concept selection completed. Pre-FEED This is accomplished through and gas companies. 8. Gas flared in 2012 reduced by studies ongoing; the signing of Exploration and around 45% compared to gas flared in 2011; 2. With the implementation of the BH field redevelopment project, 9. Completed salvage operation field production is expected to Exploration Activities in Blocks Under for two sunken ships near Halul; increase in 2020; EPSA and Open Areas 10. Ministry of Environment carried 3. Studies of MM field reservoirs are The following is a summary of out seabed cleaning campaign expected to be completed and exploration and appraisal activities near Halul Island with the redevelopment plan announced and achievements in 2012: participation of QP and Gas within 2013 (via the Oil & Gas Operations diving clubs; Ventures Directorate); 11. Introduced and commenced 4. Seismic survey for Pre Khuff EPSA Exploration Areas operations of Helicopter for Block “BC” ongoing at MM and Emergency and Medical Services BH fields; Block Operator Activity (HEMS); 5. Refurbishment of the protective Block-3 Wintershall Consortium A complete technical evaluation has been performed. 12. Completed the following coatings on PS-2, PS-3 and No drilling is planned. projects in Halul: wellhead jackets structures Block-4 GDF SUEZ Consortium The post-Khuff well has been completed and the pre- ongoing; • Commissioned the Public Khuff well is scheduled to be completed in the third Address /General Alarm 6. Installation of upgraded quarter of 2013. (PAGA) and CCTV systems; telemetry Instrument Air Block-4 North Wintershall Consortium Both Khuff exploration wells have been successfully Compressors in PS-2 and • Major overhaul of one crude completed. Final evaluation of the block is ongoing. PS-3 ongoing. Expected to be oil storage tank at final stage completed in 2013. of completion (95%); Block-A JX Nippon Preliminary technical studies are near completion and 3D seismic data are being processed. The first well is • Replacement of SBM-1 for scheduled to be spudded in January 2014. tanker loading; Block-BC CNOOC Consortium Preliminary technical studies are complete and • Refurbishment of Halul acquired seismic data are being processed. The first incinerators. well is scheduled to be spudded in September 2013. Block-D Shell Consortium Preliminary technical studies are complete and seismic acquisition and processing are ongoing. The first well is scheduled to be spudded in May 2013.

Other Field and Areas Under EPSA and Open Areas

• Bunduq Deep Exploration 1, 2, 7, 8, 10, 11, 13 and 14 are Well – This field is operated in being studied in-house by QP for conjunction with the Abu Dhabi post-Khuff potential, following National Oil Company (ADNOC). the recent completion of the A deep exploration well to regional Mesozoic study. Block-E evaluate the Khuff and pre- is being studied in conjunction Khuff hydrocarbon potential is with a regional pre-Khuff study. planned to be spudded in 2014. • Exploration Open Areas – Blocks 44 45

Al Khalij Field (Total E&P Qatar capital workovers, two Minimum EPSA/DPSA Production Fields Activities Ltd.): Facilities Platforms (MFPs), a fourth The following offshore fields under seven PSAs are currently in various stages The main operational activities in power generator and the de- of development by the following operating companies: 2012 included workovers aimed at bottlenecking of the water handling/ optimizing the existing production disposal systems at PS1 and Halul Field Operator level and the drilling of an infill Island. multi-lateral fishbone well (ALK- As of the end of 2012, 39 wells Al Shaheen Maersk Oil Qatar 114) with four laterals in Al Khalij were completed out of the 45 field. One water injector well was Occidental Qatar Energy Company planned in the Phase IV. Two MFP converted into a controlled dump- installations and two out of six ESP Al Khalij Total E&P Qatar Ltd. flood from UER aquifer using an conversions were also completed. ESP and one producer converted to Idd El Shargi North Dome Occidental Petroleum of Qatar Ltd. injector. Idd El Shargi South Dome Idd El Shargi South Dome Occidental Petroleum of Qatar Ltd. (Occidental Petroleum of Qatar The conceptual study for Ltd.): Al Karkara & A-Structures Qatar Petroleum Development Company replacing 10” water injection The new 12” pipeline to PS1 was pipeline between DP2 to WP3 El Bunduq Bunduq Company Ltd. installed and commissioned in March was completed. Preparations are 2011. Abandonment of the old 18” ongoing for the construction of pipeline is in progress. Al Shaheen Field (Maersk Oil In November 2012, QP approved produced water treatment and Qatar): the Field Development Plan (FDP) crude oil desalting plants at Halul A new Phased Full Field The implementation of the 2012, which comprises of facility Island. This will enhance water Development Plan (PFFDP) was approved 2005 Field Development debottlenecking and drilling of 51 handling capacity for ALK up to approved in the first quarter of Plan (FDP) was completed in the wells (27 development infill wells, 45,000 BWPD. 2011. Phases 1 and 2 each consist first quarter of 2012. A total of 169 15 production appraisal wells, eight of the installation of a Minimum FDP 2005 wells have been drilled standalone appraisal wells and one Geo-science and reservoir studies Facilities Platform (MFP) for the since 2006. water disposal well). The drilling continued throughout the year drilling of four and five wells, campaign for FDP 2012 is expected 2012 and these studies are Some 110.6 million barrels (bbls) of respectively. The remaining Phases to commence in the third quarter of expected to be concluded towards oil were produced from Al Shaheen 3-5 entail the installation of two 2013. the end of 2013. Some 56 square large wellhead jackets and its in 2012, bringing the total oil km of 4D seismic data was also implementation will be decided produced from the field to 1,273 Al Rayyan Field (Occidental Qatar acquired during the year. million barrels (bbls) at the end of Energy Company): based on the results of Phases 1 and 2012. In October 2007, Occidental Qatar In November 2012, QP and TEPQ 2. Energy Company (OQEC) acquired executed a Heads of Agreement Study work on the application The installation of the two MFP’s Anadarko’s interest and became the (HOA) for further development of Enhanced Oil Recovery (EOR) of Phases 1 and 2 was completed operator of the Al Rayyan field. A and operation of the field after the techniques continued in 2012. The in 2011 and 2012. As of the end new field development plan (FDP) expiration of the current PSA pilot low pressure (LP) gas injection of 2012, six producing wells were was submitted and approved in in 2014. that was carried out in 15 wells in completed out of the nine well 2010. The scope of the FDP entails Kharaib and Shuaiba reservoirs has Idd El Shargi North Dome projects planned for Phases 1 and 2. the drilling/re-drilling of seven new been completed and high pressure (Occidental Petroleum of The three remaining water injection wells with facility upgrades and (HP) gas injection pilot in seven Qatar Ltd.): wells are planned for 2013. capacity expansion. wells started in September 2012. The Phase IV FDP was approved in Al Karkara & A-Structures As of the end of 2012, six wells the first quarter of 2011. The scope (Qatar Petroleum Development were completed out of the seven 2012 Total Oil entails the drilling 30 new wells, 15 Company): planned in the FDP. Facility capacity Production by All three stages of Al Karkara and expansion activities to increase liquid A-North Full Field Development Plan handling capacity from 180,000 Operator have been completed. bl/d to 220,000 bl/d were almost completed. Replacement of the The Full Field Development Plan for CALM buoy and the installation of QP A-South Structure was approved in export pipeline were also completed Operated 2007. A-South drilling commenced in 2012, and these will improve in early 2010 and the field came the reliability of the fluid handling 39% ESPA/DPSA on production in April 2011 with a system and mitigate the long- Operated dual producer from Arab C/D and a term downtime risk. Field activities 61% selective injector. continue to focus on monitoring and The 2012 crude oil production improving operational efficiencies contribution from the QP-operated to sustain production through and EPSA / DPSA fields is shown maintenance and ESP change-out below: workovers. 46 47

North Field

Discovered in 1971, the North Field 2005. This phase is supplying 744 of Train-1 is targeted in the third Petroleum of the USA with 24.5% lies off the northeast shore of the mmscf/d of sales gas to Ras Laffan quarter of 2014 and Train-2 in the interest each). The delivery of Qatar peninsula and covers an area Power Company Limited, Oryx GTL, second quarter of 2015. The project export gas from the first stream of some 6,000 square kilometers. Q-Power, Laffan Refinery, Ras Laffan is progressing on schedule; subsea commenced in the third quarter of Olefins Company Ltd and other pipeline installation is ongoing; 2007; the second stream began in The North Field is considered to be industries in the Mesaieed area. offshore platforms are being February 2008; and full lean gas the largest single non-associated fabricated in Korea; and onshore for export to the UAE presently gas reservoir in the world with Phase-II development (AKG-2) has EPC is progressing with expected continues steadily. total proven reserves of 900 trillion a nominal design capacity of 1,250 mechanical completion as planned. standard cubic feet (tscf). The mmscf/d for supplying gas to local In 2012, average sales gas development of this vast natural industries and power generation production was 2,000 mmscfd, in resource is of great strategic plants. AKG-2 started up in the third Dolphin Project addition to 1.318 million tonnes significance to Qatar’s overall quarter of 2009. The Dolphin project entails the of LPG and 33.95 million barrels economic development. development of reserves from the (bbls) of total condensate. QP also During 2012, AKG’s average North Field for the production of exported an average of 278 mmscfd production was 1,800 mmscf/d wellhead gas sufficient to export of lean gas to Dolphin. North Field Alpha of sales gas. AKG also produced 2.0 bcsfd of sales gas to the The first commercial exploration about 27.9 million barrels (bbls) of The EPC of the Export Gas United Arab Emirates. The project of the North Field gas resource condensate and 1.149 million tonnes Compression and Flare System processes gas at Ras Laffan, where started in late 1991 with initial gas of LPG in 2012. Upgrade projects is progressing well, condensate, ethane, LPG and sulfur production from Phase I (Alpha with expected “Ready for Startup” QP has installed a new 36-inch lean are stripped out and sweet lean Project). The gas is mainly used for (RFSU) by the first quarter of 2015. gas pipeline with a design capacity gas is then delivered to the UAE supply to the local market, while of 1.0 bscf/d to supply the Mesaieed through a sub-sea pipeline. The new Third Party Gas Pipeline the condensate is used for refining industrial area. Project FEED is nearing completion. or export. A portion of the gas The Development and Production The scope of the project is to provide produced from this project is re- Sharing Agreement (DPSA) was interconnecting pipeline and related injected into the country’s strategic Barzan Gas Project signed on 23rd December 2001 measurement and control facilities contingency reserve in Dukhan. between QP and the contractor The Barzan Gas Project will produce with a capacity of 1,000 mmscfd and process gas from Qatar’s North (comprising Dolphin Investment During 2012, average production from the QP station A4 to the Field to supply sales gas to power Company with 51% interest and was 838 million standard cubic Dolphin plant. stations and industries in Qatar, Total of France and Occidental feet per day (mmscf/d) of gas ethane to the local petrochemicals and 23,088 barrels per day (b/d) industry, and associated liquid of stabilized condensate. Total hydrocarbons for sale in local and production was 305 billion standard international markets. The Barzan cubic feet (bscf/d) and 8.40 Gas Project is expected to supply million barrels (bbls) of stabilized 1.4 bscfd of gas, with first gas flow condensate. planned for 2014. The project is located in Ras Laffan Industrial City Al-Khaleej Gas and will be operated by RasGas Project (AKG) Company Limited. The project is designed to develop A Joint Venture Agreement and a reserves from the North Field to Development and Fiscal Agreement supply 2.0 bscf/d of sales gas to were signed on 6th January 2011, domestic consumers in addition with QP holding 93% interest and to condensate, LPG and sulfur for ExxonMobil holding 7%. export, and ethane for the local Appraisal drilling has been petrochemicals industry. RasGas is completed and development drilling the operator of the AKG facilities. is now taking place. The three The AKG Development and offshore jackets were installed in Production Sharing Agreement the fourth quarter of 2009. Both (DPSA) was signed with ExxonMobil offshore and onshore EPC contracts on 2nd May 2000. Phase-I (AKG- were awarded in early 2011 to 1) commenced commercial gas Hyundai Heavy Industries (HHI) deliveries on 2nd November and JGC, respectively. The start-up 48 49

Drilling Department Halul Island

The Drilling Operations for offshore • Successfully killed BH-03L Halul Island is located around 96 field - North and South Domes), fields (Maydan Mahzam and riglessly by using through tubing kilometres northeast of Doha and has Total Exploration & Production Qatar Bul Hanine) and onshore field inflatable bridge plug and an area of 1.5 square kilometres. It (TEPQ) operating the Al-Khalij field, (Dukhan) continued its activities in dumped cement above bridge is equipped with major oil terminal and Qatar Petroleum Development drilling and work over operations for the first time in an offshore facilities that meet all international Company of Japan (QPD) operating in 2012 using best industry field; standards. It is the main storage and the Al-Karkara and A-Structure fields. practices in an economical, safe export terminal for Qatar Marine • Successfully continued running Halul Terminal complies with the Ship and environmentally friendly Crude (QMC) oil. Rotary Steerable System (RSS) in and Port Security Code (ISPS) and manner. Drilling operations and all highly deviated wells, thus saving The island is equipped with 11 large follows recommendations set out by related services were conducted +/- QAR2 million per well. crude oil storage tanks with a total the International Safety Guide for Oil in accordance with ISO 9001, ISO capacity of 5 million barrels (bbls), Tankers and Terminals (ISGOTT). 14001 and OHSAS 18001. and it has tanker-loading capabilities Onshore Fields Halul Island has been playing a central (Dukhan) comprising two single mooring buoys role in Qatar’s economy and the Offshore Fields (SMB) that allow two tankers to (Maydan Mahzam and Bul world’s energy demand for decades. There were six land rigs in operation be loaded simultaneously. With its Hanine) including two at the end of 2012. range of facilities, Halul Island has a The offshore drilling rigs count is Major Achievements/Highlights loading capacity of over 100,000 bbls Future two. per hour, and it has the capability Expansion Plans • Successfully drilled 24 wells in to export more than 2.5 million bbls Major Achievements/Highlights Dukhan fields; of crude oil in one day. It also has 1. Construction of four freshwater desalination units with a total • Successfully drilled six wells in • Successfully worked over/ facilities for power generation, water capacity of 2,400 m3 per day – Maydan Mahzam (MM) and Bul abandoned and recompleted 20 desalination, harbor for supply boats, This project is currently at final Hanine (BH) Fields, including wells; heliport, waste management as well stage of completion and it is one Khuff explorer well, as suitable staff accommodation • Successfully carried out 412 expected to be completed in the (MM-93); and all related domestic facilities bottom hole pressure surveys; including restaurants, a clubhouse first half of 2013. • Successfully worked over/ • Successfully completed wells and recreational facilities. 2. Project for providing Halul Island abandoned five wells; logging campaign in 89 wells; Qatar Marine Crude (QMC) oil with 100 MW of power supply • Successfully carried out 158 from Ras Laffan through sub-sea • Successfully acidized and exported from Halul is a blend of oil bottom hole pressure surveys; cables – HE Dr. Mohammed bin production tested 27 wells; produced from five oil fields. Two of Saleh Al-Sada, Minister of Energy • Successfully conducted logging these are QP-operated fields (MM • Successfully carried out and Industry, laid the foundation campaign for 11 wells in BH and and BH) and the three others are production testing of 111 wells stone for this project in December MM fields; operated by QP joint venture partners with Mobile Test Separator and on a production sharing arrangement. 2012. The engineering work for • Successfully continued recording Multi Phase Flow Meter; Crude oil from producers is this project has commenced. LWC procedure at wire line • Successfully carried out transported to Halul by sub-sea 3. Construction of integrated boats, Halul and Ras Laffan perforation riglessly in eight pipelines. chiller, freezer, laundry, dining drilling workshop; wells; The three joint venture producers are and accommodation facilities • Successfully recovered and – The project is expected to be • Successfully carried out killing Occidental Petroleum of Qatar Ltd. repaired damaged/subsided 13 completed by 2015. and plugging of 23 wells; (OPQL) operating PS-1 (Idd El-Shargi 3/8” casing on MM-43A and 4. Construction of a centralized nine 5/8” casing on BH-116A • Successfully restored the integrity sewage treatment plant – This well; of 12 wells as per the planned project is also expected to be program; • Successfully squeezed off cross completed by 2015. flow behind casing between • Successfully ran six 3/4” RSS 5. Construction of a centralized Arab “C” and “D” formation on utilization in DK-736 and industrial area - The project is BH-14 well and re-established managed to complete the build expected to be completed by well integrity; and turn within 3.9 days; 2013. • Successfully ran and installed • Successfully acidized longest 6. Construction of additional crude Permanent Down Hole Gauge horizontal section in well oil storage tank – FEED is ongoing. (PDHG) in MM-97 for the first DK- 693, (5234’ length, TD @ well in an offshore field; 12,859’). 7. Construction in Halul Island of additional facilities by Occidental Petroleum Qatar Limited (OPQL) for IS-ND Phase-5 development. 50 51

Qatargas’ customers are spread throughout the world in European, Current Asian, Middle Eastern as well as LNG North and South American markets. Operations For Qatargas, at the very heart of its priorities is corporate social Qatargas 1 responsibility. Qatargas does not operate in isolation; on the Qatargas 1 (QG1) was established contrary, the company is intrinsically to develop and process natural linked with the communities and gas from Qatar’s North Field to environments in which it operates, produce LNG for export. The first wherever they may be around the LNG delivery was made in October world. 1996 to Japan. Qatargas 1 consists of three LNG trains (Trains 1, 2, and Qatargas is a responsible energy 3) with a total production of about operator and is committed 10 mta of LNG. For Qatargas 1, 22 to improve and promote the production wells were drilled and environmental performance of completed to supply 1,600 million Qatargas Operating LNG and its other production standard cubic feet (mmscf/d)(45 Qatargas operates all its existing trains and facilities, facilities. As a company, it upholds million cubic metres) of dry natural Company Ltd. including offshore, as well as the Laffan Refinery, the the highest standard in energy gas per day from the field’s reservoir, Common Sulfur facilities, the Common Lean LNG use efficiency, responsible energy underneath the seabed, to the (Qatargas) (CLLNG), the Common LPG (CLPG) and the Common management and conservation, existing Qatargas 1 onshore trains. Condensate Storage & Loading (CCSL) projects on and is committed to the responsible The shareholders of Qatargas 1 are behalf of its shareholders in all of its assets. management of the environment QP (65%), ExxonMobil (10%), Total Qatargas, established in 1984, pioneered the in which it operates. Qatargas has (10%), Mitsui (7.5%) and Marubeni Its offshore operations are located approximately a forward-thinking and strategically (7.5%). liquefied natural gas (LNG) industry in Qatar. 80 kilometres northeast of Qatar’s mainland. developed Greenhouse Gas Commissioned in 1996, the North Field Bravo Management Strategy.

offshore complex is the heart of the Qatargas Qatargas 2 For now and well into the future, Today, Qatargas – under the guidance of His offshore operations. Meanwhile, the company’s The Qatargas 2 (QG2) project is the Qatargas will continue to seek onshore operations occupy a site within Ras Laffan world’s first fully integrated value increased energy efficiency Excellency Dr. Mohammed Bin Saleh Al-Sada, Industrial City on a plot of land extending 3.9 square chain LNG venture. It includes two across its facilities, for continual kilometres in area. Qatargas has seven LNG trains, world-class LNG mega-trains (Trains Minister of Energy and Industry and Chairman improvement, for a better four of which – known as megatrains – are the 4 and 5), each with a capacity of 7.8 tomorrow. The company is proud of the Board of Directors at Qatargas – is the largest in the world, each with a production capacity (mta) of LNG and 0.85 mta liquefied to play its part in preserving the of 7.8 mta. petroleum gas (LPG), condensate environment, for future generations largest LNG-producing company in the world, production of 90,000 bpd, a fleet to come. with an annual LNG production capacity of 42 of 14 Q-Flex and Q-Max ships and Europe’s largest LNG receiving million tonnes per annum (mta). It is realising terminal. The shareholders of Train 4 are QP (70%) and ExxonMobil its vision to become the world’s premier LNG (30%), while for Train 5, Total holds company. a 16.7% stake, in addition to QP’s 65% and ExxonMobil’s 18.3%. Qatargas 2 includes 30 offshore wells and three platforms in Qatar’s North Field. The offshore platforms are unmanned and produce 2.9 billion cubic feet of gas per day. Total production is piped to shore via two wet-gas pipelines. The LNG is processed using Air Products’ proprietary APX process technology. 52 53

Major Achievements

As part of the total expansion of (30%) and Mitsui & Co. Ltd. (1.5%). Ras Laffan’s capacity, Qatargas 2 The LNG produced by Qatargas 3 is February September constructed facilities for expanded transported to markets worldwide • Qatargas became the first • Qatargas delivered the first LNG storage and loading, including on a fleet of ten ships, each with a company in Qatar to achieve cargo of LNG to China National five 145,000-cubic-metre tanks and carrying capacity of approximately accreditation for its professional Oil Corporation’s (CNOOC) three LNG berths, a 12,000 tonne/ 210,000-266,000 cubic metres of engineers development Zhejiang LNG Terminal. The day common sulfur system serving LNG. programme, from the Institution cargo delivered by Qatargas’ all Ras Laffan ventures, and an of Chemical Engineers (IChemE) Q-Max LNG vessel ZARGA was The upstream platforms and export pipeline and mooring buoy and Institution of Engineering used to commission the newly infrastructure of Qatargas 3 consist for loading condensate ships some Technology (IET) constructed LNG terminal. of three unmanned platforms, 33 55 kilometres offshore. wells and two subsea pipelines, • Qatargas signed a long term LNG Once the gas is processed and all of which are shared with the April Sales and Purchase Agreement turned into LNG, it is loaded and Qatargas 4 project and are operated (SPA) with Kansai Electric Power shipped in a specially designed fleet remotely from an onshore control • Qatargas completed ten years Company of Japan. Under of ships to markets in the United room. Qatargas 3 produces 1.4 of operations on its offshore the terms of the agreement, Kingdom, United States, Asia and billion standard cubic feet of gas per facilities without a Lost Time Qatargas will deliver 0.5 mta Europe. Upon arrival in the UK, the day, delivering LNG and substantial Incident (LTI) – a significant of LNG for a period of 15 years LNG is off-loaded into the purpose- volumes of condensate and LPG. milestone demonstrating the starting from 2013. built South Hook LNG Terminal at company’s outstanding safety The LNG produced from Qatargas 3 is Milford Haven, Wales. The terminal performance. shipped predominantly to markets in is the largest LNG receiving terminal October the United States, Asia and Europe. in Europe and is linked to the UK’s • Qatargas signed a long term LNG national pipeline grid, serving June Sales and Purchase Agreement approximately 20% of the current Qatargas 4 • Qatargas signed a long term (SPA) with Chubu Electric of UK natural gas demand Qatargas 4 (QG4), a joint venture LNG Sales and Purchase Japan. Under the terms of the between QP (70%) and Royal Dutch Agreement (SPA) with the agreement, Qatargas will deliver Qatargas 3 Shell (30%), started producing LNG largest Japanese LNG buyer, up to 1 mta of LNG for a period in January 2011 and it completes The Qatargas 3 (QG3) project Tokyo Electric Power Company, of 15 years starting from 2013. Qatargas’ planned LNG expansion involved the construction of a new Incorporated (TEPCO). Under projects. The project involved the • Qatargas was awarded LNG mega-train (Train 6) with a the terms of the agreement, construction of a new LNG mega- the prestigious “Award for capacity of 7.8 mta. Production Qatargas 1 will deliver 1 mta train (Train 7), similar to Qatargas 2 Excellence in Flaring Reduction” from Train 6 started in November of LNG on a long-term basis and Qatargas 3, with a production by the World Bank led 2010. Qatargas 3 is a joint venture starting from 2012. capacity of 7.8 mta. Its upstream Global Gas Flaring Reduction of QP (68.5%), ConocoPhillips platforms and infrastructure consist Partnership (GGFR). of three unmanned platforms (each containing 11 wells) and two subsea pipelines, which are shared with December Qatargas 3. Qatargas 4 produces 1.4 • Qatargas signed a long term LNG billion standard cubic feet of gas per Sales and Purchase Agreement day, delivering LNG and substantial (SPA) with PTT Public Company volumes of condensate and LPG, as Limited of Thailand. Under well as high purity grade sulfur. the terms of the agreement, The Qatargas 3 and 4 projects were Qatargas will deliver 2 mta of developed and executed by a joint LNG for a period of 20 years asset development team to capture beginning from 2015. synergies. LNG from Qatargas 4 is transported to global markets via a fleet of eight Q-Flex or Q-Max ships (with approximately 210,000–266,000 cubic metres capacity each), which were constructed in Korean shipyards. Qatargas 4 predominantly supplies markets in North America, the Middle East and Asia. 54 55

RasGas Company Limited (RasGas)

RasGas Company Limited (RasGas) RasGas, on behalf of the Project 3. Ras Laffan Liquefied Natural Laffan Helium plant started is a Qatari joint stock company Owners, exports to countries across Gas Company Limited (3) – production in August 2005 and established in 2001 by Qatar Asia, Europe and the Americas with ‘RL (3)’ develops resources on behalf of Petroleum and ExxonMobil RasGas a total LNG production capacity of RL (3) was established in 2005 the co-owners: RL, RL (II), and Inc. RasGas acts as the operating approximately 37 million tonnes per to produce LNG and related Qatargas 1. Ras Laffan Helium 2 company for and on behalf of the annum (mmt/a). products from two trains, Trains is scheduled to start-up in 2013 owners of the liquefied natural gas 6 and 7, which each have a with an estimated production For pipeline sales gas to the (LNG) projects RL, RL (II) and RL3 production capacity of 7.8 mta capacity of approximately 17 domestic market, RasGas also (Project Owners). With operations of LNG. tonnes per day of liquid helium. operates the Al Khaleej Gas Projects, facilities based in Ras Laffan Ras Laffan Helium 2 will be the AKG-1 and AKG-2, supplying 4. Ras Laffan Helium Industrial City, RasGas’ principal world’s largest single helium approximately 2.0 billion standard Ras Laffan Helium was activities are to extract, process, refinery. cubic feet (bscf) per day. RasGas is established in 2003 to extract, liquefy, store and export LNG and its currently adding production capacity purify and liquefy helium derivatives from Qatar’s North Field. by building the Barzan Gas Project from the North Field. The which, when fully operational first Ras Laffan Helium plant in 2015, is expected to supply has a production capacity of approximately 1.4 bscf of sales gas approximately nine tonnes per per day to the Qatari market to day of liquid helium. The Ras meet growing demand for energy at power stations and downstream industries. RasGas also operates the Ras Laffan Helium Plant, which was established in 2003 and came on stream in 2005. The plant extracts, purifies and liquefies helium from the North Field. The second helium plant is expected to enter production in 2013, bringing the total liquid Helium production capacity to 1.96 bscf per year. RasGas Company Limited is the operating and project development company for and on behalf of the following: 1. Ras Laffan Liquefied Natural Gas Company Limited – ‘RL’ RL was established in 1993 to produce LNG and related products from two trains, Trains 1 and 2, which each have a production capacity of 3.3 mta of LNG. 2. Ras Laffan Liquefied Natural Gas Company Limited (II) – ‘RL (II)’ RL (II) was established in 2001 to produce LNG and related products from three trains, Trains 3, 4 and 5, which each have a production capacity of 4.7 mta of LNG. 56 57

Key Operational Assets under Gas NGL and Objectives of Gas Operations Operations • North Field Alpha – Offshore gas production in Qatar’s North Field • Operate the plants with the Local Gas highest possible levels of • Khuff Facilities – Onshore gas personnel and plant safety while production in Dukhan complying with all QP and State • North Field Injection Station HSE regulations and guidelines; (NFIS) – Gas reinjection facilities • Optimize the processing of at Fahahil in Dukhan various feed streams in a cost- • NGL Complex – Gas processing effective manner to maximize plants in Mesaieed the State of Qatar’s revenues; • LPG and condensate storage • Meet the fuel/feedstock tanks in Mesaieed requirements of Qatar’s power plants and local industries; • NGL Jetty in Mesaieed – For QP Gas Operations exporting LPG and condensates • Meet export targets for LPG and NGL condensate. • Transmission and Distribution QP Gas Operations under the Operations Pipelines Network – For Gas Operations acts as the distributing various hydrocarbon Directorate is responsible for managing the integrated shutdown coordinator gases and liquids within the State for all hydrocarbon industries complete value chain for non-associated gas of Qatar operating in Qatar in order to production, associated gas and natural gas minimize the aggregate downtime and consequent production losses. liquids (NGL) processing, local transmission and It also acts as the coordinator and distribution and export of liquefied petroleum facilitator for all pipeline road crossings and construction road gas (LPG) and condensates. openings throughout the State of Qatar. 58 59

Khuff Facilities NGL Complex, LPG Transmission 2012 Highlights Khuff Gas (KG) is a non-associated and Condensate and Distribution for Gas Operations gas produced from onshore Khuff • Received certification to reservoirs in the Dukhan area. There Storage Tanks, and Pipelines Network OHSAS-18001 (Occupational are eight Wellhead Treatment Plants The Transmission and Distribution NGL Jetty Health and Safety Management with a total production capacity Pipelines Network comprises The NGL Complex in Mesaieed is System) and obtained of 600 mmscfd. Khuff facilities are an interconnected hydrocarbon made up of the following major recertification to ISO-9001 operated mainly as back-up during pipeline network – the Gas plants and facilities for gas and NGL (Quality Management System) gas supply shortages. A total of 58 Distribution System (GDS) – of processing, treatment, storage and and ISO-14001 (Environmental mmscfd of Khuff gas was produced over 3,100 kilometres of pipelines, exports: Management System). in 2012. associated manifolds and more • NGL-3 gas plant and gas than 70 distribution stations located • The first registered Clean North Field sweetening unit (AGR/SRU) throughout the State of Qatar. Development Mechanism (CDM) project in Qatar is with the Gas GDS receives fuel gas (methane, C1) Injection Station • NGL-3 condensate stabilisation Operations. On 29 November primarily from QP’s NGL Complex plant 2012, the United Nations (NFIS) in Mesaieed and Al-Khaleej Gas awarded 3.178 million CERs • NGL-2 stripping plant plants (AKG-1/2) in Ras Laffan, NFIS facilities at Fahahil consist of (Certified Emission Reduction) while ethane gas (C2) is received two compressor trains to boost up • NGL-1, NGL-2, NGL-4 Trains 1 for the period up to the end of from AKG-1/2 and Dolphin Energy’s the feed gas pressure from 90 to and 2 fractionation plants 2008. 300 barg. The surplus NF lean gas plants in Ras Laffan. • Tank farm for LPG and from the NGL Complex in Mesaieed • Liquid burning eliminated at NGL condensates storage GDS caters to the fuel/feedstock is routed to NFIS for injection into Complex and NFA. Significant requirements of power plants the Khuff and Arab “D” reservoirs. reduction in flaring achieved • NGL jetty for LPG and and industries within Qatar, viz. A total of 81 mmscfd gas was between 2008 and 2012. condensates export Q-Chem, QAPCO, QVC, QAFCO, reinjected in 2012. The NGL Complex’s products and QAFAC, Qatar Steel, QP Refinery, • Sustained improvement in raw their distribution in 2012 were as Qatalum, MPCL, QNCC, GCC, DEL, NGL yield obtained at NGL-3 follows: RLOC, Ras Girtas Power Company, extraction and NGL-2 stripping WOQOD, etc. plants through process changes and control optimization. In 2012, a daily average of more Major turnaround successfully Gas Operations Product Year 2012 Production Product Distribution than 2,150 mmscfd gas was completed at NGL-4 plant trains supplied to various power plants 1/2 during February-March 2012. NF Lean Gas 787 mmscfd Supplied to state power plants and industries across and industries in Qatar as fuel Qatar as fuel and feedstock and feedstock. This included 224 • GDS capacities enhanced Offshore Stripped Supplied as feedstock to QAPCO’s Ethane Recovery mmscfd of Stripped Associated Gas through successful Associated Gas (OFFSAG) 77 mmscfd Unit (ERU) in Mesaieed (SAG). In addition, 162 mmscfd commissioning of SGTP Phase of ethane gas was supplied as 1 and 2, GSUD and GSMC Ethane Rich Gas (ERG) 4,033 mtd Supplied as feedstock to the petrochemical petrochemical feedstock to QAPCO projects pipeline projects. Fuel complexes of QAPCO and Q-Chem in Mesaieed and RLOC plants in Qatar. gas supplies commenced to Propane 3,519 mtd Exported through the NGL jetty in Mesaieed small and medium industries. GDS SCADA Upgrade project Butane 2,690 mtd Supplied as feedstock to QAFAC’s MTBE plant in initiated to improve availability Mesaieed; balance exported through the NGL jetty in and reliability of the GDS system. Mesaieed Redundant pipelines removal NGL Condensate 1,322 mtd Exported through the NGL jetty in Mesaieed and corridor restoration are ongoing to facilitate the release North Field Stabilized Supplied as feedstock to the QP Refinery’s NFC Unit of valuable land for future Condensate (NFC) 23.2 mbd in Mesaieed development. Liquid Sulfur 182 mtd Exported via QAPCO’s facilities in Mesaieed 60 61

Year 2012 Overview The main activity of the refinery is to process crude oil and condensate into Refining various finished products, which are intended to meet both domestic (totally/ partially) and export demands. The main finished products are liquefied petroleum gas (LPG), petrochemical naphtha, premium gasoline, super gasoline, jet fuel, diesel, decant oil and fuel oil. The planned intakes and processing capacities for 2012, in barrels per stream day (b/sd), were as follows:

Feed Design Plan

Crude 80,000 80,847 *NFC 27,000 24,000 (based on feedstock availability) **DSC 30,000 20,336 (based on feedstock availability) QP Refinery Total 137,000 125,183

The QP Refinery started as a small topping The total refined products exported during the year amounted to 1,519,513 metric tonnes against the planned export volume of 1,504,000 metric tonnes. plant in 1958 and has grown over the years The refinery imported 114,922 metric tonnes of light gas oil (LGO) and 513,719 metric tonnes of Jet A-1 to meet the high increase in local demand. into a giant refinery organization, successfully making the State of Qatar self-sufficient and export-oriented in refined oil and petroleum Marketing of Major Customers Refinery Products and Destinations products. It has provided added value to the The marketing and other The major international customers country’s natural wealth, improved the refining commercial aspects of refinery for the company’s products are economics in the State, and provided citizens products sales are being undertaken Trafigura, Vitol, Glencore, Totsa, by Qatar International Petroleum Ginvor, Bakri, Arcadia, Phillips, Shell with the necessary expertise in the areas Marketing Company Ltd. (Tasweeq), and Marubeni. The QP Refinery also working in close coordination with supplies refined products locally to of management, operations, engineering, the Production Planning, Scheduling WOQOD, SEEF, QAFAC, QAPCO and maintenance and marketing. and Export Division. This division QP’s NGL Complex in Mesaieed. is responsible for working out the In 2012, countries in the Arabian annual, quarterly and monthly Gulf were the major destinations planning and products export for gasoline, diluted crude oil (DCO) schedule. and straight run fuel oil (SRFO), while naphtha was exported to petrochemical plants in Japan. 62 63

Laffan Refinery Oryx GTL

Laffan Refinery 1, Qatar’s first The Laffan Refinery helps to capture Oryx GTL Limited has been in condensate refinery, started synergies and opportunities from operation since 2006 as the world’s Achievements in production in September 2009. the development of the North first large-scale gas-to-liquids (GTL) 2012 It is designed to be one of the Field, Qatargas, RasGas and other plant using low temperature slurry largest condensate refineries in ventures in Ras Laffan Industrial City. bed Fischer Tropsch technology. Oryx GTL exceeded most of its the world. The refinery started It consists of process units including The plant has a design capacity business targets set for 2012 in with a processing capacity of utility systems, distillation units, of 32,441 b/d and is located in the areas of safety, environmental 146,000 barrels per stream day (b/ naphtha and kerosene hydrotreaters, Ras Laffan Industrial City, where compliance, employee turnover, sd) and currently utilises the field a hydrogen unit and a saturated gas it converts natural gas into high production volumes, operating cost condensate produced from the plant producing naphtha, kerojet, quality GTL products, predominantly and net profit due to its strategic Qatargas and RasGas facilities. The gasoil and LPG. GTL diesel and GTL naphtha. The focus on stability and unit cost Laffan Refinery has a production shareholders of Oryx GTL are Qatar optimization. This was achieved by capacity of 61,000 b/sd of naphtha, Meanwhile and in addition to this, Petroleum (51%) and Sasol (49%). a dedicated workforce, comprising 52,000 b/sd of kerojet, 24,000 b/ some debottlenecking is currently of around 600 permanent staff from sd of gasoil, and 9,000 b/sd of in progress at LR1 and a new Diesel more than 37 nationalities. Oryx liquefied petroleum gas (LPG). Hydrotreater Unit (DHT) is being Marketing and GTL achieved a world-class safety built to process gasoil from both performance through its Road to The Laffan Refinery’s venture refineries. The DHT is expected to Customers Zero Harm campaign to end the year with a recorded injury rate activities continue with plans be on stream by the second quarter Oryx GTL has sold more than 34 to expand condensate refining of 2014. The shareholders of LR1 of 0.00 and more than 10 million million barrels (116 shipments) of hours worked without Lost Time capacity, supplying more products are QP (51%), ExxonMobil (10%), low sulfur, low aromatics and high from a second refinery, which will Total (10%), Idemitsu (10%), Cosmo Injury (LTI). The plant continued cetane GTL diesel to the market. to produce at 105% of design be known as the Laffan Refinery (10%), Mitsui (4.5%) and Marubeni The GTL diesel is marketed by 2 (LR-2). Expected to be fully (4.5%). It is anticipated that from capacity to achieve a significant Sasol as the marketing agent and improvement in the volume of final operational by the third quarter of 2014, all of the gasoil produced supplied mainly to the Arabian Gulf 2016, this facility will be able to will be converted to diesel (less saleable products, with the final total and northwest Europe for use as a production for the year 6.3% higher process an additional 146,000 b/sd, than 10ppmS, Euro V specification). blending component with suitable thus increasing the Laffan Refinery’s Together with the new receiving and compared to 2011. The strategic partners to meet the European focus on stability resulted in a total processing capacity to 292,000 loading facility (gantry) which was diesel specification. b/ld. The shareholders of LR-2 are built in Ras Laffan in 2011, there mechanical availability of 100% for QP (84%), Total (10%), Idemitsu will eventually be an environment- 10 consecutive months to December Oryx GTL has also sold 1.18 2012. Oryx GTL also celebrated the (2.0%), Cosmo (2.0%), Mitsui friendly road fuel distribution million metric tonnes (mmt/a) (42 (1.0%) and Marubeni (1.0%) network across Qatar. achievement of 40% Qatarization shipments) of low sulfur, aromatic- during 2012. free, highly paraffinic GTL naphtha to the market. The GTL naphtha is marketed by Tasweeq and supplied to the Asian market as feedstock to Future Strategic steam crackers to produce ethylene. Focus The focus for 2013 will be to continue to improve the stability of the plant and, as such, continue to increase the average production volumes while controlling and reducing the unit cost. Oryx GTL will take the opportunity of a major planned turnaround starting in February 2013 to complete several technical improvements to the plant. The company continues to study and implement business opportunities to add value to its shareholders and contribute towards the strategic objectives of the State of Qatar, as set out in the Qatar National Vision 2030. 64 65

Pearl GTL

In July 2004, a Development & produced on 29 May 2011. The Production Sharing Agreement first commercial shipment of GTL (DPSA) was signed between QP gasoil departed Ras Laffan on 13 and Qatar Shell GTL to develop the June 2011 and the first GTL base Pearl GTL project in two phases, oil shipment was made in October Pearl-1 and Pearl-2. This integrated 2011. His Highness Sheikh Hamad project aimed to develop about Bin Khalifa Al-Thani, the Father Emir, 1,600 mmscfd of North Field gas to officially inaugurated Pearl GTL on produce approximately 140,000 b/d 22 November 2011. of synthetic fuels including base oils for manufacturing lubricating oils. Pearl GTL Phase 2 achieved its first wax production on 1 December Drilling and completion activities on 2011. Pearl-1 and Pearl-2 were completed in the third quarter of 2009 and In 2012, Pearl GTL produced a total March 2010, respectively. First gas of 15.3 million barrels (bbls) of from offshore Pearl-1 and Pearl-2 condensate and 28.6 million barrels was realized on 23 March 2011 and (bbls) of GTL products. 04 November 2011, respectively.

Pearl GTL Phase 1 achieved first wax production on 14 May 2011 and the first GTL gasoil was 66 67

QAFCO’s Performance in 2012 In 2012, QAFCO posted record figures in the areas of production, Petrochemical sales and profits. 2012 Production and Exports Industries Product Production in Metric Tonnes Exports in Metric Tonnes Ammonia 3,210,561 683,194 Urea 4,554,766 4,215,635

Marketing Some of the factors that have Ammonia markets: India was the propelled QAFCO to its current main market with a 61% share, leading position in the international followed by South Africa (21%), fertilizer market include high-quality Jordan (12.5%), products, a strategic geographic (3.5%), Madagascar and Taiwan location, efficient logistic facilities, (0.75% each), and Thailand (0.5%). Qatar Fertiliser and reliability in supply. Urea markets: Australia served Company (QAFCO) Deliveries have been made as the primary market with a 16% throughout the world, with share, followed by Thailand and the India, Jordan and South Africa of USA (13%), Brazil (12%), Pakistan Founded in 1969, Qatar Fertiliser Company (QAFCO) is particular major importance in terms and South Africa (7%), Bangladesh of QAFCO’s ammonia exports, (6%), South Korea and the owned by Industries Qatar (IQ) as a 75% shareholder and while Australia, Thailand, the USA, Philippines (5%), India (4%), New Yara Nederland B.V. as a 25% shareholder. Bangladesh, South Africa and the Zealand (3%), and Sudan (2%), with Far East dominate the company’s the remaining quantities delivered to urea exports. different destinations. Since its inception, QAFCO has steered its way successfully by responding adequately to the rising global market demand for fertilizers. Through scientific strategic plans and the integration of the latest technologies that have been steadily developed over the years, the company has raised its production capacity to 3.8 mmt/a of ammonia and 5.6 mmt/a of urea. With the completion of QAFCO-5 and QAFCO-6, Qatar has become the world’s fourth largest producer of urea. 68 69

Expansions The year 2012 was a significant year QAFCO’s initial idea of expansion Qatar Petrochemical for QAFCO. The year witnessed His through QAFCO-5 and 6 was based Highness Sheikh Tamim bin Khalifa upon the company’s successful Al-Thani, the Emir, inaugurating the business experience over the last Company (QAPCO) QAFCO-6 plant on 11th December four decades and the extensive 2012. The inauguration of the plant national reserves of natural gas. This QAPCO has grown over the years QAPCO’s Plants propelled Qatar to be the fourth potential encouraged QAFCO to to be recognized as one of the largest producer of urea and the take upon itself the task of drawing largest producers of low density and Products up an ambitious future vision to polyethylene (LDPE) in the Middle largest exporter in the world. This is Located in Mesaieed Industrial City, ensure further development of the East. The company produces a a big stride towards the realization QAPCO’s manufacturing facilities of QAFCO’s ambition to become the company. wide range of LDPE grades that are suitable in all thermoplastics consist of an 800 kiloton per annum largest producer of ammonia and (ktpa) ethylene plant, a 70 ktpa urea in the world. processing techniques with various applications. These include sulfur processing plant, and three packaging films, agricultural films, LDPE plants with a total capacity of extrusion and coating lamination over 700 ktpa, in addition to the films, high-clarity films, injection self-sufficient utilities plants and moulding, cables, wires, foam and other offsite and auxiliary facilities. other products that are widely used QAPCO’s LDPE capacity increased all over the world and touching to 700 ktpa in the middle of 2012, everyone’s daily life. after the successful start-up of the Qatar Melamine QAPCO was established in 1974 third LDPE plant, which added an as a joint multinational venture to extra capacity of 300 ktpa, thereby Company utilize the associated and non- making QAPCO one of the world’s associated ethane gases from leading LDPE producers. QAFCO has utilized its expertise in fertilizer plant operations to operate and petroleum production in line with QAPCO’s facilities also include C3/ manage a production plant of premium grade melamine. The plant is based the industrialization plan of the C4 and pygasoline hydrogenation on the Eurotechnica HP process and it is being operated by QAFCO on behalf State of Qatar. QAPCO commenced units, which are integrated with of the Qatar Melamine Company. The plant performed extremely well in the commercial production in 1981 and Q-Chem’s stream. Whereas the C3/ year under review, producing 53,322 mt of melamine. soon became well established in the C4 is supplied to QP to be converted QATAR MELAMINE CO. global market and is widely known into high-value LPG, the pygasoline for its commitment to quality and is supplied to SEEF Company for the Gulf Formaldehyde Company (GFC) its reliability. manufacture of linear alkyl benzene. The Gulf Formaldehyde Company (GFC) was created in 2003 and began QAPCO is jointly owned by QAPCO’s plants are located on operations in 2004. The GFC plants A and B are designed to produce 82 Industries Qatar (IQ) with 80% the seacoast, equipped with jetty tonnes per day of urea formaldehyde (UFC-85), a viscous liquid with 60 share and Total Petrochemicals of facilities and well connected to the percent formaldehyde, 25 percent urea and 15 percent water. Eighty percent France with 20% share. road transport network, thereby of the UFC-85 produced is consumed by QAFCO and is used as an anti-caking enabling QAPCO to export its entire agent in the production of urea. range of products worldwide. In 2012, GFC produced a total of 44,491 MT of UFC-85, the highest ever in it production history. Of this, 31,011 was produced in UFC plant A and the Projects and remaining 13,480 was produced in the newly commissioned UFC plant B. Of Ventures the total production output, 35, 027 MT was used within QAFCO and the rest was exported. In a quest to integrate and expand its downstream industrial base and diversify its income resources, QAPCO is involved in a number of joint ventures that include QVC, QATOFIN, QPPC and RLOC, making it a regional petrochemical powerhouse. 70 71

Qatar Fuel Additives Company (QAFAC)

In addition, in February 2012, polyethylene (HDPE), polypropylene Qatar Fuel Additives Company QP and QAPCO signed a Heads and linear low-density polyethylene (QAFAC) is a Qatari joint stock Production of Agreement (HOA) for the (LLDPE). company involving Industries development of a new, mega- Qatar (50%), OPIC Middle East MTBE The project is scheduled for petrochemical complex in Ras Laffan Corporation (20%), LCY Middle completion in 2018. It is an QAFAC’s MTBE plant produces Industrial City. The complex will East Corp. (15%) and International important milestone in the industrial around 1,830 mt/d by processing include a world-scale steam cracker, Octane LLC (15%). development of the State of Qatar, butane and methanol. The methanol based on the mixed feedstock of especially for the integration of its QAFAC was established to build, is provided by the on-site methanol ethane, butane and GTL naphtha, petrochemical industry. own and operate facilities at plant and QP provides the field and will produce ethylene and Mesaieed Industrial City for the butane. propylene, as well as butadiene and Qatar Petroleum has an 80% equity production of methanol and methyl pygas. The ethylene and propylene MTBE is a colorless, flammable liquid interest in the project, with QAPCO tertiary butyl ether (MTBE) for feed will be utilized in downstream with a characteristic odor and has taking up the remaining 20% stake. sale to customers worldwide. The units to produce petrochemical an average octane number of 108. QP and QAPCO will jointly develop QAFAC plant produces 983,330 products, including high-density the petrochemical complex. Therefore, it is used as a gasoline t/a of methanol and 610,000 t/a of additive that provides clean-burning MTBE. fuel to reduce the tailpipe pollution QAFAC’s mission is to be a world- generated by motor vehicles. At the class operation in the production of same time, it also eliminates the methanol and MTBE with a strong need for blending tetraethyl lead in commitment to excellence in quality, gasoline. cost competitiveness, environmental protection and safety. Methanol Methanol was first produced by wood distillation in the 1900s, and commercial production started in the 1920s from coal. From the 1960s up to now, it has been manufactured from petroleum, naphtha and natural gas. QAFAC’s methanol is produced from natural gas provided by QP, via steam reforming and methanol synthesis. The company’s methanol plant can produce 2,950 mt/d of US Federal Grade AA methanol. Methyl alcohol, wood spirit, wood alcohol, carbinol, and Colombian spirit are other names for methanol. Methanol is a clear, colorless, flammable liquid with a characteristic odor. It is a clean energy source, as well as a raw material for some of the everyday items that we use. Within the petrochemical industry, it is used as a raw material for the manufacturing of solvents, formaldehyde, methyl halide, methyl amine, acetic acid, ethyl alcohol, acetic anhydride, dimethyl ether (DME) and MTBE. 72 73

Qatar Vinyl Qatar Chemical Company (QVC) Company Ltd. (Q-Chem)

Qatar Vinyl Company (QVC) was Qatar Chemical Company Ltd. established in 1997 as a limited Marketing (Q-Chem) is a Qatari company Qatar Chemical Qatari shareholding company. The QVC continues to pursue its owned by Qatar Petroleum (QP) Company II Ltd. company was inaugurated on 21st marketing strategy, which is to sell and Chevron Phillips Chemical June 2001 by His Highness the most of its products on a long-term International Qatar Holdings LLC (Q-Chem II) Father Emir, Sheikh Hamad Bin contract basis. Close to 85% of EDC (CPCIQ). Q-Chem II is also a joint venture Khalifa Al-Thani. The company’s and caustic soda sales are made QP owns 51% of Q-Chem and between QP (51%) and CPCIQ shareholders are QP (55.2%), on a long-term contract basis and OBJECT PANTONE CMYK CPCIQ owns 49%. The Q-Chem (49%). The company has established C: 00 QAPCO (31.9%) and Arkema more than 95% of VCM is sold on a PANTONE M: 91 a world-class high density and 208CVC facility is a world-class integrated (12.9%). similar arrangement. Y: 34 K: 38 petrochemical plant capable medium density polyethylene (HDPE of producing high density and and MDPE) plant and normal alpha In 2012, QVC products were shipped C: 100 Production PANTONE M: 54 olefins (NAO) plant adjacent to the worldwide in around 140 vessels. REFLEX BLUE CVC Y: 00 medium density polyethylene (in metric tonnes) K: 00 The main destinations included (HDPE and MDPE), 1-hexene and original Q-Chem plant in Mesaieed.

• Ethylene dichloride (EDC) Australia, South Africa, Southeast C: 00 other products, using state-of- The Q-Chem II PE and NAO plants PANTONE M: 00 COOL GRAY 7CC Asia and India for caustic soda, while Y: 00 the-art technology provided by 176,600 FX: RADIAL GRADIENT each have a production capacity K: 47 India and Southeast Asia were the Chevron Phillips Chemical, a major of 350,000 mt/a. The plants utilize • Vinyl chloride monomer (VCM) main markets for EDC, and India, integrated producer of chemicals Chevron Phillips’ proprietary 332,400 Pakistan and Australia for VCM. and plastics. The Q-Chem facility technology. The NAO plant produces • Caustic soda (CS) began operations in 2003. the full range of alpha olefins, 352,600 Health, Safety and The Q-Chem complex in Mesaieed including butene, hexene, octene, Environment Industrial City is comprised of an decene and higher molecular weight Operations ethylene unit capable of producing olefins. The facility includes a new Highlights QVC’s operations have passed over 500,000 mt/a, a polyethylene bagging and storage warehouse. 5.6 million safe LTI-free man-hours facility with a capacity of 453,000 The Q-Chem II plant started up in QVC’s production of both VCM and since start up and have continued mt/a, and a 1-hexene unit with late 2010. caustic soda was in line with the with no lost time injuries and no a production capacity of 47,000 2012 budget plan. The company’s occupational illness. QVC is meeting mt/a. Q-Chem’s assets also include Products chloralkali plant was operated the standards as defined in the an acid gas recovery unit, a sulfur Q-Chem’s polyethylene products at 24% above its initial capacity, Environmental Protection Law and recovery and solidification unit, a are used to manufacture plastic while 50% above the designed the Consent to Operate issued by bagging and storage warehouse, pipe, rigid and flexible packaging, production capacity was reached for the Ministry of Environment of the and dock facilities. household industrial chemical/ the VCM plant. State of Qatar. detergent/liquid food bottles, drums and geosynthetic liners. NAO products, on the other hand, are 74 75

widely used as plastic co-monomers, Qatofin Company detergents, synthetic motor oil and Operational lubricants, fuel additives, functional Excellence drilling fluids, plasticizers and Limited Qatofin Company Limited is a joint II and QP. The produced ethylene is specialty waxes. Q-Chem operates its assets under venture company involving QAPCO sent through a pipeline from RLOC the principles of operational (63%), Total Petrochemicals of to Qatofin and Q-Chem II. Marketing and excellence, which is a system to France (36%) and QP (1%). Qatofin achieve world-class performance for is designed to produce 450,000 The Qatofin plant was inaugurated Distribution safety, environmental stewardship, metric tonnes of linear low density by the His Highness the Father Emir, quality and reliability. Additionally, polyethylene (LLDPE) per year. The Sheikh Hamad bin Khalifa Al-Thani Q-Chem and Q-Chem II are the Q-Chem is committed to similar ethylene feedstock required for the on the 24th of November 2009. primary suppliers of HDPE/MDPE standards and principles through LLDPE unit is supplied by Ras Laffan Commercial operation and export resins from the Middle East. Responsible Care as a member Olefins Company (RLOC), a joint of LLDPE subsequently started in Marketed under the Marlex® trade of the Gulf Petrochemicals & venture between Qatofin, Q-Chem May 2010. name licensed by Chevron Phillips Chemicals Association. Continuous Chemical Company, Q-Chem improvement for both initiatives is and Q-Chem II are the preferred verified through regular audits. An suppliers to many customers in example of performance in 2011 SEEF Limited China, the Asia Pacific, Middle was Q-Chem’s winning of QP’s East, Europe and African markets. Silver Award for safety excellence, SEEF Limited is a semi-government, other end-use segments. This has While many customers are supplied and in January 2012 the company joint venture petrochemical been facilitated by the superior directly from Qatar, Q-Chem and received another recognition from company, with 80% of the shares quality of its product, which has Q-Chem II have also established QP for its Sustainable Development held by Qatar Holding and the been accepted and appreciated by regional warehouses in China, Reporting Initiative. Q-Chem is an remaining 20% held by United many leading detergent producers Singapore, Belgium, Italy and Spain. ISO 9001:2008 certified company. Development Company (UDC). worldwide. Q-Chem’s 1-hexene and Q-Chem II’s The plant is located adjacent to NAO fractions are marketed under the QP Refinery in the industrial Major Highlights the AlphaPlus® trade name licensed area of Mesaieed. This location has in 2012 by Chevron Phillips Chemical been selected for its proximity to Company. The primary distribution the source of feedstock and to the SEEF Limited managed to achieve channel for these products is via various utilities that the plant uses important milestones in 2012, marine chemical tankers directly in common with the refinery. The including the following: complex started production in March from Qatar. Regional tank farms 1. Higher production than planned; have also been established in 2006. Singapore and Belgium to support 2. Significant increase in the the local markets in these countries. Products company’s net profit due to excellence in the marketing of Produced since the first quarter of The main product of SEEF Limited 2010, AlphaPlus® normal alpha its products and proper cost is linear alkyl benzene (LAB), which management; olefins are quickly becoming the is an important ingredient in the preferred products in many of their manufacturing of environment- 3. Remarkable reduction in the respective market segments. friendly detergents. The plant is quantity of imported raw designed to produce 100,000 mt/a materials by maximum utilization of LAB, with 3,600 mt/a of heavy of the available feedstock; alkyl benzene (HAB) also produced 4. Achievement of 3,650,000 safe as a by-product in addition to man-hours as of 31 December Ras Laffan Olefins normal paraffin and benzene. 2012 without lost time injury since the plant’s start-up in Company Ltd. (RLOC) Marketing 2006. The monitoring of the environmental impact of its SEEF Limited has consolidated its Ras Laffan Olefins Company Ltd. Ethylene produced by RLOC is industrial operations is also position across the world through (RLOC) is a Qatari company that transported from Ras Laffan to a priority that the company a marketing strategy that is based is owned by Q-Chem II (53.31%), Q-Chem II and Qatofin derivatives undertakes with due care on short- and long-term contracts, Qatofin Company Limited (45.69%) units in Mesaieed via a 135-km and respect for the natural as per the requirements of its and Qatar Petroleum (1%). RLOC pipeline. In Mesaieed, a total ecosystem; clients. Its current customers are has constructed a world-class 1.3 of 700,000 mt/a of ethylene is 5. Accomplishment of QP-targeted spread across Southeast Asia, million mtpa ethylene cracker, which allocated to Q-Chem, with the strategic Qatarization plan the Far East, all over the GCC, is operated by Q-Chem II on behalf remainder supplied to Qatofin. RLOC and achievement of the target South Africa, the Mediterranean, of all RLOC partners. began operations in the first half of percentage; Europe and Mexico. The company 2010. continues to strategically explore 6. Launching of the company’s new new geographical areas as well as website with added features (www.seef.com.qa). 76 77

Vision, Mission Industrial and Strategic Objectives Vision Cities To be world-leading industrial cities, valued by business partners and society for their commitment to excellence and socio-economic The managements of Ras Laffan Industrial City sustainability. and Mesaieed Industrial City were merged Mission under a single directorate in September 2012. Guided by the Qatar National Vision 2030 and in compliance with The objective of the merger is to improve corporate, state, and international governance, the industrial cities are performance and operating efficiency by committed to: • Achieving the highest level of health, safety, security, environmental capitalizing on synergies, best practices and protection and socio-economic sustainability; standardization of business processes across • Protecting the interests of the State, Qatar Petroleum and our the two industrial cities. business partners; • Operating highly reliable facilities and providing responsive services to our business partners; • Developing, optimizing, and sustaining world-class infrastructure and facilities; • Enhancing the talent and expertise of our people to achieve operational excellence; • Developing local talent and acting as a leader in corporate citizenship.

Strategic Objectives The strategic objectives of the industrial cities are as follows: • To manage infrastructure development, land use and capture industrial synergies; • To deliver and maintain highly reliable logistics, utilities, facilities and services; • To improve health, safety and environment standards; • To foster positive relationships with business partners and society; • To improve organizational effectiveness and the capacity of human resources; • To deliver superior financial performance. 78 79

Mesaieed Industrial City (MIC)

A wide range of shopping facilities • Qatar Steel is a regional leader Background are available in the town centre and in the steel industry. Future Mesaieed Industrial City (MIC) is these include indoor and outdoor • Qatar Aluminium Company Development located approximately 40 kilometres malls. The city also offers a variety (Qatalum) has a fully-integrated south of Doha and is currently the of sports and recreational facilities, Plans aluminium plant which produces hub for petrochemicals, chemical including a desert golf club, a PANTONE 124 CVC PANTONE 229 CVC high-quality primary aluminium • Upgrades to the hazardous PANTONE 128 CVC PANTONE 293 CVC fertilizers, oil refining, metallurgical multipurpose recreation complex and products. waste treatment centre; PANTONE 355 CVC PANTONE 228 CVC and primary building materials a number of social and recreational industries in Qatar. In addition, clubs. • Qatar Vinyl Company (QVC) • Expansion of domestic MIC hosts numerous small and produces high-quality vinyl wastewater treatment plant A modern, permanent, fully serviced medium-sized industries as well products. and its integration with the new accommodation for contract workers as a well-planned, self-contained, south Doha sewage treatment residing in Mesaieed is available. • Qatar Fuel Additives Company sustainable, modern township plant; (QAFAC) produces methanol with fully-serviced infrastructure and methyl tertiary butyl ether • Expansion of the nautical providing a high quality of life for Major Industries (MTBE). channel at Mesaieed Port; its residents. Operating in MIC • Construction of fire stations, Facilities and A wide range of products are Major Projects Ministry of Interior (MOI) produced in MIC. These include complex, business, residential Services natural gas, petrochemicals, plastic Completed in and recreational facilities, and resins, refined petroleum products, new mosques; MIC provides industries with land, 2012 aluminium, steel, etc., which are roads and self-contained residential • Development of an Ecological supplied to the local, regional and • Rehabilitation and construction facilities to accommodate the Park; international markets. The major of roads and infrastructure in resident workforce. Other the Mesaieed Community Area; industries operating in MIC are as • Upgrading of existing roads and services provided include follows: construction of the new Sealine emergency response coordination, • Safety improvements to the Highway; environmental monitoring, fire- • The QP Gas Operations complex existing Sealine Road; fighting, medical and security. in Mesaieed manages the on- • Major electrical upgrading at • Construction of additional shore processing, distribution infrastructure, utilities and labour The Port of Mesaieed handles Mesaieed Port; and export of products derived accommodation for Light and the export of hydrocarbons, from non-associated gas. • Extensive landscaping of the General Industrial Zones. petrochemicals and aluminium industrial area roads and produced by industries in the area. • The QP Refinery processes crude residential areas. In addition, the MIC port handles oil and condensate into a variety all the imports of primary building of finished products, including materials, such as steel and Gabbro, naphtha, gasoline, jet fuel, diesel into Qatar. The port includes the and fuel oil. largest container terminal in the • Qatar Petrochemical Company country. (QAPCO) is one of the leading The Mesaieed Light Industrial Area producers of ethylene and low- covers over 3 million square metres density polyethylene (LDPE) in and caters to small and medium the Middle East region. enterprises (SMEs) supporting • Qatar Fertilizer Company primary industries in Mesaieed. (QAFCO) is a leading, world- The hazardous waste treatment class fertilizer producer and is facility is the only facility of its kind the world’s largest single-site in Qatar and provides services for producer of ammonia and urea. industries in and around Mesaieed. • Qatar Chemical Company The city also hosts a number of (Q-Chem) is a world-class community and government integrated petrochemical plant schools as well as a modern producing high-density and international school with 1,700 medium-density polyethylene students from kindergarten to and other products. secondary. 80 81

Ras Laffan Industrial City (RLC)

RLC also provides industries with As a regulator, RLC develops and The remaining major industrial Background various utilities including desalinated implements relevant regulations to developments in progress include the Ras Laffan Industrial City (RLC), water, potable water, power, ensure that industrial development following: which is located 80 kilometres telecommunications, seawater activities and industrial operations • Barzan Gas Project; northeast of Doha, is the base for through the Common Seawater are conducted in a manner that all onshore operations to support Facility, as well as municipal safeguards the health and safety of • Laffan Refinery 2 Project; the development and utilization waste treatment and disposal. people and assets and minimizes • Qatar Solar Technologies polysilicon of Qatar’s North Field gas assets. Other services provided include impacts on the environment and the plant; C 100 M 40 Y 15 K 0 It commenced operations in emergency response coordination, local community. 1996 by initially providing land, environmental monitoring, fire- • Qatar Helium 2; infrastructure and port facilities fighting, medical, security and camp Major Industries to Qatargas. Since then, RLC has accommodation for designated • Ship repair yard (phases 5-6); evolved into a world-class industrial categories of the workforce. Operating in RLC • Al-Karaana Petrochemicals city, facilitating the needs of the The Ras Laffan Support Services Most of the industrial developments Complex, a QP joint venture with most technologically sophisticated Area (RSSA), which covers 3 million targeted by QP to utilize the North Shell; natural gas-based industries. Field’s current planned production square metres and is located on • Al Sejeel Petrochemical Project, a QP capacity of 25 billion cubic feet of the west side of RLC, has been joint venture with QAPCO; Facilities and developed for industries that provide gas per day are now complete and Services support services for the oil, gas and include the following: • Qatar’s strategic oil storage facility. petrochemical industries in Qatar • Qatargas and RasGas – The RLC provides industries with land, and the region. largest LNG producers in the Major Projects roads and common corridors world; for pipelines, and other utilities’ RLC is also home to the Ras Completed in 2012 structures. The Port of Ras Laffan, Laffan Emergency and Safety • Pearl GTL and Oryx GTL – The • Seamen’s club in Ras Laffan Port; which is the largest LNG export College (RLESC). This world-class major producers of GTL in the facility in the world, facilitates international college, an initiative world; • New environmental laboratory. the marine export of all the between QP and the Ministry of • Al-Khaleej Gas produces lean hydrocarbons and sulfur produced Interior, will be operational in 2013 Future natural gas for the Qatar by industries, the import of general and will provide emergency and market; Development Plans cargo, and the support of offshore safety training to the oil, gas and production operations in the North petrochemicals industry as well as • Dolphin Energy Limited The projects that are currently in various Field. to civil defence, aviation and the produces lean natural gas for stages of implementation include the military in Qatar and the region. export by pipeline; following: • Laffan Refinery produces refined • Ras Laffan Emergency and Safety petroleum products; College; • Ras Laffan Olefins Company • Common Seawater Facility phase 3; produces ethylene for • Ras Laffan Port expansion phase 3; petrochemical products; • MARPOL-compliant marine waste • Ras Laffan Helium; reception facility; • Qatar Power, Ras Girtas Power • Ras Laffan Support Services Area and Ras Laffan Power produce phase 2; electricity for Qatar and for export to the GCC market; • New power substations for future petrochemical industries. • Erhama Bin Jaber Al Jalahma Shipyard provides ship building, repair and maintenance services. 82 83

Gulf Helicopters Company Other Industries (GHC) Gulf Helicopters Company (GHC) is GHC operates under QCAR Ops 3 100% owned by Gulf International and QCAA Part 145 regulations, and and Supporting Services (GIS), a Qatari joint stock is approved and fully aligned with company in which QP is the largest the requirements of the European shareholder. Aviation Safety Agency (EASA) and the Federal Aviation Administration Incorporated in 1970, GHC has (FAA) of the US. GHC is also an ISO Services grown tremendously since its 9001: 2008 certified company. acquisition by QP in 1998 and it is currently one of the leading helicopter operators in the Middle East region with its operations extending to India, Yemen and Libya. In 2010, the company also operated in the Sultanate of Oman and East Timor on short-term contracts. 84 85

Company History The following chronological summary outlines the history of the company since its inception:

Timeline Development July 1970 Established and incorporated in the U.K. (Gulf Aviation 51%, BOAC 32%, BEA 15%) March 1977 Gulf Air 100% June 1993 De-registered in the U.K. (A division of Gulf Air) June 1998 Taken over by QP 100%; purchase of assets/business December 1998 Issuance of Emiri Decree establishing Gulf Helicopters January 1999 Incorporated as a Qatari company February 2008 Taken over by Gulf International Services (GIS) 100%

The business growth of the company is as follows:

Timeline Development 1970 to date Provides helicopter services in Qatar for the offshore operations of all oil and gas companies including QP, RasGas, Oxy, Qatargas, Total, Maersk Oil, Dolphin Energy, Anadarko, Shell, QPD, Wintershall and Talisman 1987 to 1999 Operated in Oman 1989 Operations commenced in Yemen Company Future Plans GHC’s operations continue to 1994 (Sept.) Operations commenced in India Operations expand as the company reaches GHC has a fleet of 39 helicopters, 1998 to 2006 Operated in out to new geographical areas and consisting of two S-92, 14 AW as it plans to increase its scope of 2000 to 2006 Operated in Sudan 139s, 17 Bell 412s, five Bell 212s, services. The company is targeting and one Bell 206. In addition to 2007 Operations commenced in Libya new markets including Australia, managing and operating three Brazil , Europe and Egypt as well other helicopters (two MD 902 and 2007 Introduced Helicopters Emergency Medical Services as new growth areas in the State one EC 155), the company offers (HEMS) in Qatar for the first time in collaboration with of Qatar in line with the country’s services such as VVIP transport, the National Health Authority and Hamad Medical growing exposure to major cultural, offshore support, onshore transport, Corporation. Added one AW 139 to the fleet sports and international events, seismic support, VFR & IFR, load 2008 Added 3 more AW 139s to the fleet including the 22nd FIFA World Cup – lifting, photo flights, helicopter Qatar 2022. 2009 Added 3 more AW 139s to the fleet emergency medical services and aircraft management. GHC strives to keep up with the 2010 Added 5 more AW 139s to the fleet modernization of its fleet in order 2011 Added 1 more AW 139 to the fleet to bring in the latest technologies available in the market. In addition, 2011 Started operating the AW 139 full-motion flight it is pursuing other related business simulator, making it the first company in the world to opportunities consistent with its own and operate such simulator. growth plan. 2012 Added 1 more AW 139 to the fleet 86 87

Qatar Qatar Plastic Products Steel Company Company (QPPC)

The year 2012 was an excellent year • The company’s steelmaking Qatar Plastic Products Company 6-colours, thus ensuring excellent in the history of Qatar Steel in terms plant was ranked No.1 in “Best (QPPC) was established on 19th quality of printing. of operational and financial results. Operational Overall Equipment September 1998. Commercial The products are tested by QPPC’s This is very significant considering Effectiveness (OEE) and production commenced in August quality control department. An that the global apparent steel Maintenance Cost Index” in the 2000, and the plant was officially analysis certificate detailing the consumption had trended down World Steel Association’s survey inaugurated on 21st November composition, dimension and from a year-on-year (YOY) growth for 2010. 2000 by His Excellency Mr. Abdullah mechanical properties of the product rate of 6.2% in 2011 to 2.1% Bin Hamad Al Attiyah, who was • Through research and is provided with every delivery. in 2012 and the earnings before then the Minister of Energy and development, the company had Safety data sheets and Certificate of interest, taxes, depreciation, and Industry. The company is equally launched recycling programs Conformity are also supplied upon amortization of the top 70 publicly owned by Qatar Petrochemical for by-products and it is also request. listed companies across the globe Company (QAPCO), Qatar Industrial collaborating with Qatalum for had dropped by around 30% in Manufacturing Company (QIMCO) Certified under ISO 9001:2008 the recycling of their carbon 2012. and FEBO s.p.a. of Italy. Quality Management System, QPPC’s waste. products are extruded in modern The production volumes from all Around 90% of the company’s • Qatar Steel was the first Qatari blow film lines. Qatar Steel units recorded 8.4 production is sold to the local company and the first steel million tonnes with a YOY increase market, while the balance is company in the region to of 7% over 2011. marketed in other Gulf countries Products be inducted into Palladium’s and in Europe. The company’s In the domestic market, Qatar Balanced Scorecard Hall of Fame QPPC produces the following range production facility is located in Steel achieved re-bar sales of 0.985 for Strategy Execution. of products: Mesaieed Industrial City, which is million tonnes and registered a • FFS (form, fill and seal) film Qatar Steel addressed its expansion about 40 kilometres south of Doha. 19% increase in re-bar export sales plans and growth strategies through • shrinkable hood 0.715 million tonnes as against its latest Consolidated Business Plan • shrinkable film 0.602 million tonnes of actual sales Main Activities 2013-2017 submitted to its parent • construction foil (polythene in 2011. QPPC produces plastic film for company IQ. sheet) industrial packaging using the blow During the year, Qatar Steel • The ongoing SMS Greenfield extrusion process. All operations • polyethylene sleeve received a number of awards Project [EF5] is 78.42% are controlled by a sophisticated and accreditations related to its • greenhouse and agricultural film completed and expected to be computerized system that operations and business practices: • top open bags operational in July 2013. automatically checks the quality • The company released its First of the film. The products can be • general purpose film • Qatar Steel has increased its Sustainability Report in 2012, produced from different kinds of • heavy duty trash bags stake in Solb Steel of Saudi highlighting its commitment polymers to satisfy customers’ Arabia (formerly South Steel • EcoDeck (wood-plastic to sustainability approach and requirements. Printing is done using Company) from 29.74% to composite) performances during 2009- Flexographic printing lines up to 31.03% and the company has 2011. already commenced its trial production of Billets and Bars. • A Joint Venture Agreement was signed between Qatar Steel (35%) and other partners for establishing and constructing a ferro alloys plant in Mesaieed. 88 89

QPPC News Environment Qatar Aluminium With the guidance of the QPPC The preservation of the natural Board of Directors along with environment is one of QPPC’s (Qatalum) the leadership of the QPPC highest priorities, and the company Management, the company genuinely understands the fact that Qatar Aluminium (Qatalum) is Qatalum’s first electrolysis cell started achieved the following major our environment is an irreplaceable pursuing industrial diversity for production of liquid aluminium accomplishments in 2012: asset. Qatar and its people by actively metal. This marked the historic creating a future of environmental beginning of aluminium production • QPPC produced 11,600 metric Since the establishment of the sustainability and economic and exports from the State of Qatar, tonnes of plastic film in 2012, company, a plastic waste recycling opportunities while simultaneously confirming Qatalum’s ability to making it another record- unit has been installed to cater to building the foundation for a deliver its product within budget breaking year in terms of the waste polyethylene and other sustainable, knowledge-based and with an excellent environmental quantity produced since the plastic films that are being produced industry. and safety standard. Full production inception of the company. as by-products. The recycling unit capability was reached on transforms these production wastes • Extrusion Lines Upgrade – Two September 21st, 2011. into a usable raw material that is The Smelter co-extrusion lines for producing later used to produce trash bags and Qatalum currently produces over In July 2010, Qatalum was awarded FFS films were modified, and other products. 600,000 tonnes of premium-quality certification to ISO 9001:2008, and one new co-extrusion line for aluminium per annum. The smelter this was followed by certification producing shrink hoods was QPPC is fully compliant with facility includes a carbon plant to ISO/TS 16949:2009 in 2012, the installed to replace the old line. all applicable international and a state-of-the-art product prescribed standard of excellence These modifications contributed environmental laws as well as casthouse, producing value-added for the automotive industry supply to the increase in the output of the environmental regulations premium aluminium such as chain. the lines by around 25%. These implemented by the State of Qatar extrusion ingots, foundry alloys and upgrades were vital in meeting to protect the country’s natural standard ingots that meet the most higher production demands in resources. Qatalum stringent quality standards of the the region. company’s global client base. Production System • EcoDeck, a wood-plastic QWPC News The Qatalum Production System Qatalum includes an inbound composite that is made In line with the shareholders’ vision (QPS) affects the entire Qatalum berth at the MIC port with storage with two components of for economic diversification along organization, including operating facilities to handle the raw material polyethylene and wood powder, with the government’s strong units, support functions and imports of alumina, coke and pitch. will soon be produced in support for the development of small management, and enables its staff The smelter is also equipped with a the QPPC plant. This project and medium enterprises (SMEs), to drive for operational excellence. captive power plant with a capacity expansion aims to produce the QPPC management looked into Qatalum has a dynamic and of 1,350 megawatts to supply all its 65,000 m2 per year of EcoDeck different options for diversification diversified workforce, representing electricity needs. Qatar Petroleum materials. The most common and stability. Subsequently, over 34 nationalities. By using delivers approximately 200 million application of EcoDeck is in management proposed to build in reliable technology and processes, standard cubic feet of natural gas outdoor decking for swimming Mesaieed a modern plant named performance is improved through per day to Qatalum’s power plant. pool areas, marinas, public Qatar Wooden Products Co (QWPC), the continuous improvement of cost, areas, etc. and this has been approved by QPPC quality, volume and HSE. shareholders. Milestones On 4th December 2009, Qatalum The QWPC would house a fully Environment cast its first batch of foundry alloy automatic wooden pallet production Qatalum’s highly efficient technology ingots from re-melt followed by line along with a heat treatment for aluminium reduction boosts the first foundry alloy customer facility, and it will have the capacity productivity and sets new standards shipment on18th December 2009, to produce up to 1.6 million units in environmental performance by Qatar’s National Day. Two days later, of wooden pallets per year. QWPC’s reducing the company’s carbon production would serve the wooden footprint and spotlighting waste pallet requirements of QAPCO, management and emission Q-Chem I and II, QATOFIN and the reduction. Process gases from soon-to-be-built Qatar petrochemical the reduction process go through complex. Equity sharing for the dry and wet scrubbing in fume QWPC stands at equal percentage treatment plants to ensure that of 33.3% among the three QPPC emissions meet international air shareholders: QAPCO, QIMCO and quality standards, making Qatalum FEBO. The QWPC is expected to one of the most environmentally commence production in the second advanced primary aluminium quarter of 2013. smelters in the world. 90 91

Qatar Petroleum International Ltd. (QPI)

As QP’s international investment and exploration assets in Africa, downstream portfolio represents arm, QPI continued to pursue its North America, and other parts an important addition to QP’s Future Plans strategy of seizing opportunities for of the world. worldwide position in the global As part of its ongoing growth global value creation and optimal . strategy, QPI will continue to: • QPI Upstream has farmed-in risk adjusted returns in 2012. to two onshore exploration • QPI has built on its existing • Build a balanced upstream During the year, its partnerships blocks in Mauritania (Blocks Ta7 downstream investments portfolio of exploration, with IOCs and NOCs advanced and Ta8). TOTAL, with a 60% by advancing a number of development and production to the stage where specific interest, is the operator of the downstream opportunities in assets by advancing its existing opportunities were identified to blocks, while QPI and Sonatrach China, Asia and Africa. portfolio of opportunities with increase focus on upstream, gas each hold a 20% interest. In IOC partners and others; and power business prospects. 2012, the TOTAL Mauritania • QPI’s Gas and Power Group It also continued to manage its joint venture continued activities (G&P) focuses on managing the • Monetize future Qatari LNG and terminal assets for value creation related to its second exploration three LNG regasification plants gas and build value through and to build other investment well, which is scheduled for of QP (South Hook in the UK, investments in power generation opportunities, and its Downstream drilling in 2013. Golden Pass in the USA, and and other midstream assets; and unit closed two significant large- Adriatic in Italy, all of which • Execute on its existing scale investments. In all, the • During 2012, QPI closed are collectively known as the investments and advance activities in 2012 positioned QPI two strategic investments in “Terminals”). G&P is stewarding its opportunity portfolio in with a very strong, multi-billion Downstream. QPI entered these assets to achieve QPI’s petrochemicals, refining and dollar portfolio of investments the US$3.7 billion ERC Egypt strategic goals and to realize related downstream sectors and opportunities to extend QP’s Refinery Project in Mostorod, optimal returns to QP and the in order to monetize available international accomplishments. Egypt, with a 28% share and State of Qatar. G&P will affect crude oil, condensate and LPG work has been started on the this by continuing to handle the production and build on QP’s construction and engineering duty and maintain the country’s 2012 Activities global position. aspects of the ERC project interests as Qatari shareholders • The year 2012 represented during the year. The Longan in the Terminals in all business QPI’s focus in 2013 will be on an important year for QPI Vietnam petrochemical joint aspects. The South Hook completing the acquisition phase Upstream, with the MOUs venture work, on the other cogeneration power project (SH of its multi-billion dollar upstream entered into with IOC partners hand, is in progress and it is CHP) advanced significantly in portfolio to secure access to and others in prior years anticipated that a decision 2012 and is expected to reach production and build additional resulting in specific ventures will be taken in mid-2014 early design stage during 2013. development and exploration being identified and advanced. regarding this project. When opportunities worldwide. In addition, These QPI opportunities provide • In addition to SH CHP, G&P combined with the existing the Upstream group will continue to QP with potential access to a advanced a number of its QSPS Singapore petrochemical actively pursue new opportunities multi-billion dollar cross section portfolio of gas and power joint venture with QPI, Shell and that are strategically aligned with of producing, development opportunities through Sumitomo Companies, QPI’s QP’s global activities. In Gas & preliminary assessment, Power, QPI will continue to steward negotiation and due diligence its Terminal assets and advance in 2012. Within this portfolio opportunities related to these assets of new opportunities, G&P is to further build value for QP in the now positioned to enter into global LNG and gas market. In 2013, specific investments in 2013, QPIs Downstream focus will be on mainly acquisitions of equity advancing the existing and new shares in existing/operational opportunities in its portfolio and LNG terminals and combined- managing its existing petrochemical cycle gas-fired power plants in assets in current operations to create Eastern Europe and Southern a material addition to QP’s premier Asia. global downstream business. 92 93

Gulf Drilling International Ltd. (GDI) Gulf Drilling International Ltd. GDI’s GDI has also successfully made (Q.S.C.) (GDI) is a world-class GDI’s Future the first steps into its ambitious provider of safe and innovative Achievements in GDI has a bright and exciting diversification plan. It acquired drilling services. GDI was established future ahead, having laid a solid “Zikreet,” a drilling rig that was in May 2004 and specializes in the 2012 foundation for continued growth, converted for accommodation provision of onshore and offshore GDI enjoyed a very strong year expansion and profitability. The duty and put to work in 2012. The drilling services to major oil and gas in 2012 and achieved several company has embarked on a company has further plans to build companies in Qatar. significant milestones and US$875-million expansion plan. on this success and aims to pursue accomplishments in the following According to the expansion plan, other opportunities GDI started as a joint venture areas: three hi-spec premium jack-up rigs between Qatar Petroleum (QP), GDI has recently signed up to are currently being constructed in ONLY FOR STICHING OR SILK SCREEN PRINTING LESS THEN 2 CM and Japan Drilling Co. Ltd. (JDC), provide lift boat services to a • Ended 2012 with its best safety PPL and Keppel FELS’ shipyards, In 2008, the shares of QP were major client in Qatar and hopes record ever, a combined Total both in Singapore. The fleet transferred to Gulf International that this success will encourage Recordable Incidents Rate (TRIR) expansion will allow it to continue Services (GIS), which owns 100% other potential lift boat users to of 0.50 compared to the IADC to grow its market share in Qatar shares of Gulf Helicopters, Amwaj see its immense benefits. GDI sees Middle East’s combined average and decrease the average age of its Catering Services and Al Koot great potential in the growth of of 0.66; rig fleet. Insurance Company. lift boat operations in Qatar and • Achieved its lowest ever intends to be the leading jack- GDI is a growth-oriented company. operational downtime results of up accommodation and lift boat In just nine years from 2004 to 0.67%; services provider. 2012, GDI’s rig fleet has grown to 12 rigs and its workforce has • Exceeded its corporate KPI target With GDI’s fleet currently working increased from 100 to 1,080 of net profit; at 100% utilization and with the employees, including 85 Qatari • Signed the following contracts recent upward turn in day rates, nationals. GDI’s current rig fleet and extensions: the next few years are set to be consists of five offshore jack-up very promising for the company. drilling rigs, six land rigs, one • New contract with QP and When the new drilling rigs enter accommodation jack-up barge delivered two new onshore into service in 2013 and 2014, GDI’s and one lift boat operated by GDI. work-over rigs, GDI-5 and market share is set to rise to over GDI has placed an order to build GDI-6; 50% with five state-of-the-art cyber three new jack-up drilling rigs in • Extended the Al-Zubarah rigs in operation. GDI will be able to Singapore, and these will be put contract for 12 months with offer to drill the most complex wells into operation by early June 2013, QP; on any location in Qatar. the fourth quarter of 2013 and the fourth quarter of 2014, respectively. • Signed new contracts with Shell for two firm wells to be GDI held 45% of the offshore rig drilled by Al-Khor; market and 85% of the onshore rig market share in the State of • Signed a two-year contract Qatar as of the end of 2012. extension with Oxy for Al- The company has diversified Wajba. into other growth areas, such as • Participated in, hosted and accommodation jack-ups and lift sponsored several events boat services to complement its with major clients and related existing operations. professional associations 94 95

Financial Report 96 97 Qatar Petroleum Qatar Petroleum Consolidated Consolidated Income Statement Balance Sheet For The Year Ended 31 December 2012 At 31 December 2012

2012 2011 2012 2011 QR ’000 QR ’000 QR ’000 QR ’000 OPERATING REVENUE ASSETS Sales 330,328,819 289,179,187 Non-current assets Other operating income 30,531,032 14,307,275 Property, plant and equipment 259,255,604 251,432,753 Deferred expenditure 2,888,494 1,456,009 Total operating revenue 360,859,851 303,486,462 Investments 6,444,858 5,954,372 Other long term assets 2,267,318 1,818,910 OPERATING EXPENSES Investment properties 148,033 133,230 Operating, selling and administrative expenses (42,317,703) (36,624,404) Depreciation and amortisation (12,977,185) (11,943,245) 271,004,307 260,795,274 Total operating expenses (55,294,888) (48,567,649) Current assets Cash and cash equivalents 43,702,383 49,009,188 NET OPERATING INCOME 305,564,963 254,918,813 Debtors and prepayments 28,452,118 22,073,950 Dividend and interest income 1,245,737 682,692 Inventories 11,832,459 11,382,057 Finance charges (5,778,947) (5,911,405) Amounts due from Ministry of Finance 139,396,737 24,290,980 INCOME BEFORE ROYALTIES, TAXES AND MINORITY INTEREST 301,031,753 249,690,100 223,383,697 106,756,175 Royalties (74,022,229) (62,075,002) TOTAL ASSETS 494,388,004 367,551,449 Taxes (109,470,887) (96,432,312) INCOME BEFORE MINORITY INTEREST 117,538,637 91,182,786 EQUITY AND LIABILITIES Capital and reserves Minority interest (3,401,471) (2,320,551) Contributed capital 100,000,000 100,000,000 NET INCOME FOR THE YEAR 114,137,166 88,862,235 Retained earnings 122,742,936 17,115,711 Other reserves 99,780,948 91,901,442 322,523,884 209,017,153 Minority interest 15,577,934 9,291,692 Total equity 338,101,818 218,308,845 Non-current liabilities Dr. Mohammed Bin Saleh Al-Sada Hamad Rashid Al-Muhannadi Loans 77,379,560 73,892,979 Minister of Energy and Industry Vice Chairman Obligations under finance lease 35,224,177 36,690,424 Chairman and Managing Director Provision for employees’ end of service benefits 1,358,663 1,232,627 Deferred income taxes 4,615,271 3,653,316 Other liabilities 1,641,289 1,767,891 120,218,960 117,237,237 Current liabilities Creditors and accruals 29,184,033 24,599,653 Loans 6,883,193 7,405,714 36,067,226 32,005,367 Total liabilities 156,286,186 149,242,604 TOTAL EQUITY AND LIABILITIES 494,388,004 367,551,449

Dr. Mohammed Bin Saleh Al-Sada Hamad Rashid Al-Muhannadi Minister of Energy and Industry Vice Chairman Chairman and Managing Director

The attached notes 1 and 2 form part of these consolidated financial statements. The attached notes 1 and 2 form part of these consolidated financial statements. 98 99 Qatar Petroleum Consolidated Cash Flow Statement For the year ended 31 December 2012 – 2012 2011 – QR ’000 QR ’000 Cash flows from operating activities (291,833) (549,974) (203,563) 2,999,731 50,000,000 Net income for the year before minority interest 117,538,637 91,182,786 91,182,786 119,974,216 (41,802,787) 218,308,845 338,101,818 – – – – – – – Adjustments to reconcile net income before minority interest – (520,525) to net cash provided from operating activities: – Depreciation and amortisation 12,977,185 11,943,245 QR’000 (63,898) Minority (549,974) – Provision for employees’ end of service benefits 334,950 294,570 (114,960) (224,870) interests Total 2,320,551 3,401,471 117,538,637 2,999,731 9,291,692 7,585,013 – Deferred income taxes 892,027 1,201,672 15,577,934 – – Impairment of assets – 922,674 – – Adjustment / net loss on sale/transfer of fixed assets 3,982,667 5,685,771 (291,833) 135,725,466 111,230,718 (139,665) 50,000,000 88,862,235 112,389,203 (41,802,787) 209,017,153 Net (increase) decrease in operating assets and liabilities (3,494,652) 6,299,434 322,523,884 – – – – – – – – – (109,910) – Cash flow from operations 132,230,814 117,530,152 – (520,525) – 114,137,166

Payments and advances against employees’ end of service benefits (208,914) (182,212) Legal reserve Total QR’000 963,795 152,275 122,817 – 1,116,070 Net cash from operating activities 132,021,900 117,347,940 1,238,887 – – – – – – – – – – Cash flows from investing activities – – Payments for property, plant and equipment, deferred expenditure and other assets (26,389,845) (32,853,510)

Proceeds from disposal of property, plant and equipment 185,101 417,842 reserve QR’000 General

Movement in deposits maturing after 90 days (60,771) (456,619) 8,277,214 50,243,655 41,802,786 92,046,441

Purchase of investments (490,486) (841,106) 100,323,655 – – – – – – – – – – – – Net cash used in investing activities (26,756,001) (33,733,393) Other reserves 89,946

Cash flows from financing activities QR’000 113,620 currency (491,022) (401,076) Proceeds from borrowings 17,757,696 7,420,318 (287,456) Repayment of loans and obligations under finance leases (16,170,185) (7,109,699) translation – – – – – – – – – – – – Net movement in minority interest 2,884,771 (613,872) Net change in account with Ministry of Finance (115,105,757) (63,923,281) QR’000 reserve Hedging (478,214) (381,779) (634,145) Net cash used in financing activities (110,633,475) (64,226,534) (859,993) (1,494,138) – – Net (decrease) increase in cash and cash equivalents (5,367,576) 19,388,013 – Cash and cash equivalents at the beginning of the year 48,189,675 28,801,662 Cash and cash equivalents at the end of the year 42,822,099 48,189,675 earnings Retained (152,275) (139,665) (122,817) 12,150,989 88,862,235 17,115,711 (8,277,214) (41,802,786) (41,802,787) 122,742,936 Foreign – – – – – – – – – – (109,910) – – – 114,137,166 capital QR’000 50,000,000 50,000,000 100,000,000 100,000,000 Contributed profit for the year for the support of sports, cultural and charitable activities. In accordance with the clarifications issued, such appropriations are to be with the clarifications issued, such appropriations for the year support of sports, cultural and charitable activities. In accordance profit to of such contribution relating share Corporation’s in the statement of changes equity as a distribution income. The above represents recognized its listed subsidiaries. movements a.) In accordance with Law No. 13 of 2008, companies’ listed in Qatar Exchange are required to appropriate an amount equivalent to 2.5% of the net to appropriate required with Law No. 13 of 2008, companies’ listed in Qatar Exchange are a.) In accordance Consolidated Statement of Changes in Equity For the year ended 31 December 2012 Note: part financial statements. 1 and 2 form notes attached of these consolidated The Qatar Petroleum Balance at 1 January 2011 Capital contribution Net movement in other reserves Net income for the year to general reserve Transfer to legal reserve Transfer Transfer to current account to current Transfer with Ministry of Finance Transfer to social fund (Note (a) Transfer Balance at 31 December 2011 Net to general reserve Transfer to legal reserve Transfer to social fund (Note (a)) Transfer Net movements Balance at 31 December 2012 Net movement in other reserves Net income for the year

The attached notes 1 and 2 form part of these consolidated financial statements. 100 Qatar Petroleum Notes to the Consolidated Financial Statements At 31 December 2012

1. LEGAL STATUS AND ACTIVITIES Qatar Petroleum (“QP” or the “Corporation”) is a state-owned public corporation, established in the State of Qatar by Emiri Decree Number 10 of 1974. The principal activities of QP, its joint ventures and subsidiaries (collectively referred to as the “Group”) are the exploration, production and sale of crude oil, natural gas and gas liquids and refined products, production and sale of petrochemicals, fuel additives, fertilisers, liquefied natural gas (“LNG”), steel, chartering of helicopters, underwriting insurance and other services. The principal place of business of QP is the State of Qatar. Pursuant to Law No. 5 of 2012, which was issued on 7 August 2012, by the state of Qatar amending certain provisions of the Decree No. 10 of 1974 and transferring ownership in QP from Ministry of Economy of Finance to Supreme Council for Economic Affairs and Investment effective 1 January 2012.

2. BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION These consolidated financial statements have been prepared under the historical cost convention, except for investment properties and derivative financial instruments which are measured at fair value. The consolidated financial statements are presented in Qatar Riyals (QR) and all values are rounded to the nearest thousand. The consolidated financial statements of the Group have been prepared in accordance with the requirements of Emiri Decree No. 10 of 1974, concerning the establishment of the Corporation, the Council of Ministers’ Decision Number 6 of 1976, (as amended) and the accounting policies set out below: Basis of consolidation These summary consolidated financial statements have been derived from the consolidated financial statements of Qatar Petroleum for the year ended 31 December 2012. These summary financial statements do not contain all information and disclosures applied in the preparation of the 2012 audited consolidated financial statements of Qatar Petroleum and should be read in conjunction with those consolidated financial statements and the notes attached thereto. The consolidated financial statements have been prepared under the historical cost convention, except for investment property and derivative financial instruments which are measured at fair value. The carrying values of recognised assets and liabilities that are hedged items in fair value hedges that would otherwise be carried at cost are adjusted to record changes in the fair values attributable to the risks that are being hedged. The summary consolidated financial statements are presented in Qatar Riyals (QR) and all values are rounded to the nearest thousand. The consolidated financial statements of the Group have been prepared in accordance with the requirements of Emiri Decree No. 10 of 1974, concerning the establishment of the Corporation, the Council of Ministers’ Decision Number 6 of 1976, (as amended) and the accounting policies set out in Note 2 to the consolidated financial statements.