Sustainable Development through Partnership and Clean Technologies

Abu Dhabi National Oil Company (ADNOC) Sustainability Report 2013 | Executive Summary Message from the Director General

The Emirate of is entering Approximately 70,000 tonnes of in developing leading edge condolences to the workers’ families,

a new era of development with great carbon dioxide equivalent (CO2e) technologies to optimise CO2 friends and to their communities. resolve, dedication and determination. It is were avoided as a result of adopting management in Abu Dhabi. Our belief that work-related deaths moving ahead in its journey to success and this practice in our onshore activities and serious injuries and illnesses towards further prosperity and economic in 2013. Going forward, the challenge will are preventable will motivate us to development, driven by the inspiration be to make CCUS projects both reinforce our emphasis on safety of its leaders and the aspirations of its We were also proud to register commercially viable and attractive training about hazards on the job people. Under the wise leadership of our second Clean Development to invest in. To this end, the joint and the need for continual vigilance H.H. Sheikh Khalifa bin Zayed Al Nahyan Mechanism (CDM) project in 2013, venture between ADNOC and across our operations. and the oversight of H.H. General Sheikh undertaken by ADCO for flare gas Masdar is a pioneer that will create Mohamed bin Zayed Al Nahyan, Crown reduction at their Shah field. The a benchmark for the technical Supporting a knowledge-based Prince of Abu Dhabi and Deputy Supreme project will abate approximately and commercial delivery of these society

Commander of the UAE Armed Forces, we one million tonnes of CO2e over its projects region-wide. As we enter a new era in the oil and are already building milestones on the way crediting period of 10 years. Flaring gas industry, where the extraction to achieving the Abu Dhabi Economic Vision reduction continues to be one of our Energy integration of existing and new hydrocarbon 2030, the roadmap for the Emirate’s long- Group Companies’ major priorities. ADNOC’s long-term strategy is reserves becomes more complex term economic growth and progress. To date we have achieved a 76.4% to move towards greater energy and technically challenging, our reduction in flaring across our infrastructure integration in Abu requirements for technical experts ADNOC is proud to play a central role operations compared to our 1997 Dhabi and the wider UAE. We to support our growing operations in helping realise that vision; the role levels, despite undergoing significant are beginning to recognise the across the hydrocarbon value chain of providing a secure and reliable expansion in our production during value that energy integration becomes increasingly important. energy supply to support our nation’s this period. brings through our major projects development. To meet this commitment that include the Integrated Gas ADNOC places great emphasis on in a safe and environmentally responsible The year 2013 also marked our Development (IGD) project, which implementing a robust strategy manner, and at the scale that will be flagship partnership with Abu Dhabi was fully operational this year, and for recruitment, development and required, we will build on our strength Future Energy Company (Masdar) through our collaborations with retention of human capital. ADNOC is “The is a responsible in developing clean technologies and for carbon capture, usage and other domestic players including also committed to the development hydrocarbon producer. We are committed to techniques that will maximise our value, storage (CCUS). The application of Union Railway on the sulphur rail line of UAE nationals in alignment with while increasing the safety, efficiency CCUS clean technology provides between Shah, abd , the UAE Government’s plan to create finding and adopting real-world solutions that have and environmental performance of our two obvious advantages. Injecting and with International employment opportunities for economic and environmental returns.” operations. Forging strategic partnerships CO2 safely helps limit emissions in a Investment Company (IPIC) on the Emiratis, known as ‘Emiratization’. along the way will be integral to our region that has one of the world’s Habshan-Fujairah pipeline. Our current five year target is to success, as we seek to benefit from largest carbon footprints per capita. achieve 75% Emiratization across applied technologies and to share the In addition, CCUS enhances oil These projects provide strategic core company positions by the end H.E. Abdulla Nasser AlSuwaidi, expertise and know-how required to production through enhanced oil supply routes for our products to of 2017. ADNOC Director General manage the complexity of our challenging recovery (EOR), while liberating global markets, whilst also creating Keynote Address at Signing Ceremony for ADNOC-Masdar work environments. the much needed natural gas to economic benefits for the country With our highly motivated and Carbon Capture, Usage and Storage Joint Venture Agreement, the markets that would otherwise as a whole through employment determined manpower, we are 10 November 2013 Clean technologies and partnership be used for injection into oil fields opportunities and boosting the local confident that the building blocks The introduction and application of new to maintain production rates and and regional supply chain for goods assembled year after year will processes and technologies that can reservoir pressure. and services. contribute to a bright future for improve the long-term performance the UAE, and will ensure continued of our natural resources and assets, in The joint venture is the first phase Safe and responsible operation prosperity in the years ahead. parallel to delivering energy efficiencies of an industrial-scale CCUS network We have been in the oil and gas and emission reductions throughout our planned as part of Abu Dhabi’s business for over 40 years and our hydrocarbon value chain, is critical. Across commitment to decarbonize its priority is to always operate safely our operations, we are phasing out onsite economy and create a low-carbon and in an environmentally responsible power generation with more efficient power generation industry. It will way. Sadly however, eleven workers power imports from the national grid. also collaborate with ADNOC’s lost their lives while working for Petroleum Institute and Masdar’s ADNOC in 2013. I would like to Abdulla Nasser AlSuwaidi Institute of Science and Technology express my sympathy and extend our Director General ADNOC Group Companies

NDC • Provides onshore and offshore drilling services to the ADNOC Group Companies • 2,085,831 feet drilled in 2013 Associated and Non-associated Gas Associated Gas • Operates: -- 13 offshore jack-up drilling rigs and 2 offshore island drilling rigs ADCO GASCO Al HOSn Gas ADMA-OPCO ZADCO -- 26 land drilling rigs • Operates 3 desert plants for gas • Operates the Shah Gas Field • Operates 2 offshore fields: • Operates 3 offshore fields: • Operates 7 major onshore fields: Asab, -- 5 water-well rigs (to survey the Sahil, Shah, Bab, Bu Hasa, Qusahwira, North processing and natural gas liquids (220 km south west of Abu -- Umm Shaif: 360km2 in size, located -- Upper Zakum (UZ): 1,269 km2 in size, quality, quantity and distribution East Bab fields (Al Dabbiya, Rumaitha and (NGL) extraction: Asab, Bu Hasa, Dhabi) 150km north-west of Abu Dhabi located 84 km north-west of Shanayel) and Habshan / Bab complex (Bab • Complete facilities expected to -- Zakum: 1,270km2 in size, located Abu Dhabi of groundwater in the Emirate of • The Bu Hasa field is one of the top twenty has additional sour gas treatment be operational by end of 2014, 65km north-west of Abu Dhabi -- Umm Al Dalkh (UA): 150 km2 in size, Abu Dhabi) fields in the world in terms of proven reserves facilities) with a sour gas production • The Zakum field is the second largest located 25 km north-west of -- 1 multi-purpose service vessel • Total concession area covers over • Operates an NGL Fractionation Plant capacity of 1,000 million offshore field in the Gulf and the fourth Abu Dhabi 2 in Ruwais Condensate standard cubic feet per day largest field in the world. It contains -- Satah (ST): 35 km2 in size, located 200 21,000 km & • 2 export terminals: Jebel Dhanna Terminal • Operates a pipeline distribution Natural Gas (MMSCFD) over the field’s lifetime five separate zones which make up km north of Abu Dhabi and Fujairah Terminal network to route natural gas to Liquids Lower Zakum and Upper Zakum. Field • Oil operation centres on Zirku Island (140 • Current oil production capacity of 1.5 million several industrial consumers development has been centred on the km north-west of Abu Dhabi) and Arzanah barrels of oil per day (bpd) with plans to • Overseeing several major expansion lower zones in view of their superior Island (180 km north-west of Abu Dhabi) ADNATCO & NGSCO increase to 1.8 million bpd by 2017, by projects, implementing new gas Sales Gas Sulphur productivity • Major expansion project underway at • Provides international marine initiating production from 3 new fields: processing facilities and revamping • 37 platforms Upper Zakum. This project, known as transportation of LNG, petroleum Qusahwira, Mender and Bida Al-Qemzan existing ones Sulphur • 408 oil and gas well heads (some of Upper Zakum 750 (UZ750) aims to products, bulk sulphur and which are shared with ZADCO) increase production from 600,000 bpd to polyethylene 750,000 bpd by 2017 • Operates a fleet of: Network & -- 8 LNG Carriers Crude Oil Industrial Ethane Consumers -- 9 Oil & Chemical Tankers Fujairah Condensate & -- 7 Bulk Carriers Export Natural Gas Sales Gas Integrated Gas Crude Oil Associated and Associated Gas Crude Oil -- 2 Container Vessels Terminal Liquids Development Non-associated Gas Project -- 1 LEG Carrier Jebel Dhanna Terminal Refined Products Ruwais (Export) Terminal

Takreer Borouge FERTIL Zirku Island Hydrogen • Operates two oil refineries: • Operates the Borouge 1 and 2 • Operates two Ammonia Plants -- Abu Dhabi Refinery: located in petrochemical plants in Ruwais, UAE and two Urea Plants in the Ruwais ESNAAD Umm Al Nar, capacity of 85,000 • The Borouge 3 expansion project will Industrial Complex: LNG, LPG, • Provides a range of facilities, services barrels of oil per day increase the annual capacity of ethylene -- Ammonia: total capacity of 3,300 Paraffinic ADGAS and supplies to the oil and gas sector, Naphtha and • Operates a (LNG) -- Ruwais Refinery: capacity of from 2.1 to 3.6 million tonnes and metric tonnes per day including: Sulphur Plant on Das Island (180 km north-west 420,000 barrels of oil per day polyolefins from 2 to 4.5 million tonnes -- Urea: total capacity of 5,800 of Abu Dhabi) -- Offshore marine support services • Capacity at the Ruwais refinery due to in 2014. metric tonnes per day • The LNG Plant is unique worldwide in its (ESNAAD operates a fleet of 53 increase from 420,000 bpd to 837,000 • Operates a compounding manufacturing • FERTIL’s expansion project, FERTIL-2, ability to process both associated gas, vessels) bpd by Q4 2014, upon completion of plant in Shanghai, China, with an annual came on stream in July 2013 which is a by-product of oil extraction the Ruwais Refinery Expansion (RRE) Nitrogen capacity of 50,000 tonnes (to be -- Berthing, bunkering and bulk processes, and natural gas extracted as a Project (Gaseous / increased to 90,000 tonnes by 2015) supply Liquefied) free product from gas reservoirs -- Port services • Average annual production: 8 million -- Well services tonnes of Liquefied Natural Gas (LNG), -- Drilling fluids services Ethylene, Polyethylene, Urea and Liquid Liquefied Petroleum Gas (LPG), paraffinic Refined Products Ammonia Polypropylene naphtha and liquid sulphur -- Specialised production chemicals • Operates a Grinding Plant, Blending Plant and Brine Plant in the Refined Products (Local Sales) End Users Offshore Supply Base

ADNOC Distribution ELIXIER • Operates 224 motor vehicle service stations • Operates two facilities: IRSHAD across the UAE -- Ruwais Air Separation Plant: provides • Provides marine services to the petroleum • Provides a range of services: gaseous and liquefied nitrogen to -- Storage and distribution of liquid fuels Borouge via pipeline; liquefied nitrogen ports of Abu Dhabi (Ruwais, Jebel Dhanna, and LPG to ADNOC subsidiaries via tanker; and Das Island, Zirku Island, Zakum Field and -- Lube oil and grease production and liquid oxygen to end users in the UAE KEY Mubarraz) and Fujairah Port marketing -- Mirfa Nitrogen Plant: consists of • Services include: -- Bunkering (marine) and aviation fuelling two identical air separation trains to -- Pilotage, berthing / unberthing of O&G provide nitrogen (capacity of 670,000 -- Allied services (vehicles inspection/ Flow of existing products Flow of future products tankers and the loading of oil products Nm3/h) for injection into gas reservoirs testing & service, car wash, lube -- Offshore terminal maintenance, Change, convenience stores) located at Habshan inspection and associated diving -- Natural gas distribution for domestic use operations and vehicles Industrial terminal for processing, Major projects storage and export of products -- Operational and technical management of a fleet of 50 vessels of which 10 ASD Tugs, 4 tail back boats and 4 pilot boats are ADNOC owned

ONSHORE OFFSHORE the major oil fields that constitute (MRC) to effectively develop the the number of new wells required. ADNOC Major Projects ADCO’s South East Asset. Covering entire field. ERD technology enables The first of the four artificial islands an extensive area of 7,525 km2, the wells to be initially drilled vertically that constitute the UZ 750 Project, the The world will require all forms of energy to meet South East asset also includes the following which they can be drilled South Island (shown in picture below), oil fields Qusahwira and Mender. horizontally to target reservoirs up was fully completed in 2012. The the increase in demand that will be driven by Collectively, the asset contributes to to several miles away; the innovative North Island was completed in 2013; population growth, improved living standards and almost one-third of the company’s MRC technology unlocks tighter the Central and West Islands are due expanded urbanisation. daily production. areas in the reservoir and reduces for completion in early 2014.

The Qusahwira oil field was commissioned in Q4 2013 with an initial production capacity of 30,000 bpd, increasing to 53,000 bpd by ADNOC-Masdar Carbon Capture, Usage and 2017. Production from Mender is Storage Joint Venture targeted in 2017. In 2013, ADNOC established a joint venture with Abu Dhabi Future Energy Upper Zakum Full Field Company (Masdar), the ’s first project focused on exploring Development Project and developing commercial-scale projects for carbon capture, usage The Upper Zakum Full Field and storage (CCUS). The project consists of three core components.

Development Project, implemented First, CO2 will be captured onsite at Emirates Steel Industries (ESI), the by ZADCO, is a mega offshore UAE’s largest steelmaker facility. Second, the CO will be compressed and To help meet the rising global energy Abu Dhabi and the wider UAE. provide up to 800 million standard 2 project that is central to meeting transported along a 50 km pipeline to ADCO’s onshore oil fields. Third, demand and secure the gas supplies We are beginning to recognise cubic feet per day (MMSCFD) of gas the company’s strategic target of the CO will be injected into the oil fields for enhanced oil recovery (EOR), required to fuel the development the value that energy integration for domestic supply. 2 increasing production capacity which liberates the much needed natural gas to the markets - that would of our local economy, ADNOC is brings through our major projects from the Upper Zakum oil field to otherwise be used for injection into oil fields to maintain production rates collaborating with local oil and gas that include the Integrated Gas Shah Gas Development Project 750 thousand barrels of oil per and reservoir pressure. With demand for electricity on the rise due to partners including Dolphin Energy, Development (IGD) project, and The Shah Gas Development (SGD) day by 2017, sustainable for 25 industrial development, the CCUS project will allow the UAE to preserve Emirates LNG, and Abu Dhabi Future through our collaborations with Project, implemented by Al Hosn years. The project, also known as its hydrocarbon gas for domestic power generation as gas is used as a Energy Company (Masdar). ADNOC is other domestic players including Gas, is a technically-challenging Upper Zakum 750 (UZ 750), is feedstock in all of the Abu Dhabi Emirate’s power plants. also engaged in a series of strategic Union Railway on the sulphur rail project that aims to extract and unique in its application of artificial projects that will drive production line to move granulated sulphur process approximately 1,000 islands as drilling and production The joint venture is the first phase of an industrial-scale CCUS network growth by exploring and developing from our sour gas fields in Shah MMSCFD of wet gas from the Shah centres (instead of conventional planned as part of Abu Dhabi’s commitment to decarbonize its economy new hydrocarbon resources, as and Habshan to Ruwais, and with Arab field sour gas reservoir – located well head platform towers), and and create a low-carbon power generation industry. The project will well as improving the long-term International Petroleum Investment 210 km southwest of Abu Dhabi its utilisation of new technologies sequester up to 800,000 tonnes of CO annually. Project completion is performance of our existing fields. Company (IPIC) on the Habshan- city. From this sour feed gas stream 2 in Extended Reach Drilling (ERD) set for early 2016. Fujairah pipeline. These projects (which contains as much as 23% and Maximum Reservoir Contact In recent years, our production provide strategic supply routes for hydrogen sulphide), the project growth has emphasised natural our products to global markets, will provide 500 MMSCFD of clean gas production, where natural gas whilst also creating economic natural gas for the Abu Dhabi market, is seen as a cleaner fuel amidst benefits for the country as a whole making it one of the most critical rising global concerns surrounding through employment opportunities energy infrastructure projects for the climate change and oil dependency. and boosting the local and regional . However we recognise that without supply chain for goods and services. gains in efficiency throughout the The SGD Project facilities are energy value chain, production Integrated Gas Development targeting production growth cannot sustainably curb the Project commencement in Q4 2014. upward-sloping energy demand The Integrated Gas Development curve we are challenged with today. (IGD) Project, implemented by Sahil-Asab-Shah Full Field ADGAS, ADMA-OPCO and GASCO, Development Project ADNOC’s strategy therefore places is a mega onshore-offshore project The Sahil-Asab-Shah (SAS) Full Field emphasis on integrating clean that saw full completion in Q3 Development Project, implemented technologies with our operations, of 2013. As part of this undertaking, by ADCO, is one of the company’s which notably include our on-going additional gas wells were drilled at major projects in ADCO’s strategy Clean Development Mechanism ADMA-OPCO’s offshore Umm Shaif to increase onshore oil production (CDM) projects and our flagship field for gas transfer to ADGAS’s new to 1.8 million barrels of oil per day partnership with Abu Dhabi Future facilities on Das Island and then via a (bpd) by 2017. The project involves Energy Company (Masdar) for carbon 200 kilometres pipeline to GASCO’s major installations and modifications capture, usage and storage (CCUS), Habshan plant for further processing. to surface handling facilities, aimed as well as moving towards greater at increasing the production capacity energy infrastructure integration in The IGD project will ultimately at Sahil, Asab and Shah – three of ADNOC Products and Markets Asia

Crude oil and condensate exported (‘000 bbl) Total* 527,041

Petroleum products exported (‘000 tonnes) Naphtha 4,833 Europe Jet oil / Kerosene 7 Gas oil 553 Fuel oil 417 Crude oil and condensate exported (‘000 bbl) Gas and sulphur exported Total* 2,577 (‘000 tonnes) Sulphur 1.109 S LPG 7,007 Petroleum products exported Paraffinic naphtha 2,142 (‘000 tonnes) Jet oil / Kerosene 3,533 Gas oil 83

Gas exported (‘000 tonnes) LPG 39 Australia and New Zealand

Crude oil and condensate exported (‘000 bbl) North and Total* 239 South America

Petroleum products exported (‘000 tonnes) Africa Jet oil / Kerosene 214 Gas oil 113 Petroleum products exported (‘000 tonnes) Sulphur exported (‘000 tonnes) S Jet oil / Kerosene 35 Sulphur 71 Gas oil 215

Sulphur exported (‘000 tonnes) S Sulphur 1,005

* ADNOC share of products exported in 2013

Crude oil and condensate introduced based on market demand The new mixture will also save a Petroleum products developed by Al Hosn Gas. ADNOC 4.5 million tonnes by 2014 upon The main onshore grade for our and in view of ADMA-OPCO’s considerable fraction of the loading ADNOC’s refined products are also markets its share of Liquefied completion of the Borouge-3 crude oil is Murban. Our offshore growing oil production. time needed compared to pumping produced by TAKREER and are Petroleum Gas (LPG) and paraffinic project). Borouge’s plastics are sold grades include Umm Shaif, Lower two different grades into oil tanks. sold domestically by ADNOC naphtha, produced by GASCO and in over 50 countries worldwide, for Zakum and Upper Zakum. ADNOC Currently, crude from the Umm Shaif This will ensure better shipment DISTRIBUTION. Our refined products ADGAS. various applications that include also produces two grades of and Lower Zakum fields is transferred programming and flexibility, as are also exported to international the infrastructure, automotive and condensate; Uweinat and Thamama. to Das Island for processing, storage keeping oil tankers beyond the markets. Petrochemicals advanced packaging industries. and export. Mixing the two crudes timeframe allowed for loading is ADNOC petrochemicals are produced ADNOC has plans to blend crude and consequently storing it in unified avoided. Sulphur and gas by BOROUGE and FERTIL. Borouge is a FERTIL manufactures fertilizers from the Umm Shaif and Lower tanks will free up two storage tanks Sulphur is a valuable by-product of leading provider of innovative, value for domestic and international Zakum oilfields into a new blend, Das on a busy island and secure the our operations. Sulphur production creating plastics and has a polyolefins consumption. In 2013, FERTIL Crude, which will replace the existing space required for accommodating is set to increase significantly when (polyethylene and polypropylene) produced 802,561 tonnes of Umm Shaif and Lower Zakum grades ADMA-OPCO’s additional production. production commences from the manufacturing capacity of 2 million ammonia and over 1.34 million by Q3 2014. The new blend will be sour Shah Arab field, currently being tonnes per year (increasing to tonnes of urea. Sustainability Performance Summary How we operate Data on our sustainability performance from 2009 to 2013 is presented below.

PEOPLE 2009 2010 2011 2012 2013 Our approach LTIF - Exposure hours FAR - Exposure hours UAE females across ADNOC positions Employees – ADNOC Group >22,000 >32,000 >33,000 >37,000 >50,000 Having our people return home safe and well at the end of every work day and enabling People Women in workforce (%) 6 6 8.5 8.7 8.3 0.25 2500 2.5 25 2000 them to end their working life fit and healthy is central to everything we do. Regardless of where our people are located or the type of work they undertake, we strive to create Employee training (thousand man-hours) 705 775 >939.5 1,160 1,900 0.2 2000 2 20 1500 a working environment that is free from occupational illness or injury. This is reflected Employee training (AED million) - 47.5 78.5 229.5 306 in the processes and controls we have in place throughout our organisation. Our 0.15 1500 1.5 15 Fatalities – employees 1 2 1 0 2 principles and requirements for safe, reliable and compliant operations are part of our FAR LTIF 1000

Fatalities – contractors 6 2 12 12 9 0.1 1000 1 10 Fatalities Health, Safety and Environment Management System (HSEMS) against which all ADNOC Hours worked (million hours) 313 355 589 865 710 operations are required to align with. Collectively, these requirements are designed to 500 0.05 500 0.5 5 enable our operations to safely return to full function as soon as possible. Fatal accident rate (FAR) - per 100 million hours 2.23 1.13 2.21 1.39 1.55 Exposure hours (million hours) Lost time injury frequency (LTIF) - per million hours worked 0.24 0.19 0.14 0.1 0.09 0 0 0 0 0 Employing and developing talented and motivated people who share our values is a Tier 1 process safety events - 25 11 5 28 critical to our long-term success. We are committed to providing a work environment Tier 2 process safety eventsa - 55 19 9 38 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 in which everyone is treated fairly and with respect and has the opportunity to a Exposure hours LTIF Fatalities FAR Non-technical positions Tier 1 and Tier 2 process safety events are reported as per the American Petroleum Institute Recommended Practice 754 (API RP 754) guidelines. (million hours) maximise their potential. Technical positions

ENVIRONMENT 2009 2010 2011 2012 2013 Flaring trend Greenhouse gas emissions Our approach Flaring (MMSCFD)a 65 53 63 60 62 2 While pursuing our goal to be a global leader in the oil and gas industry, ADNOC has Environment b 70 25 an overriding commitment towards environmental protection and stewardship. This GHG emissions (million tonnes) 19 19.8 21.4 23.2 24.7 Clean Development Mechanism 60 commitment is anchored in our HSE policy and will continue to be one of our foremost Direct energy consumption (million GJ) - 279.5 450 527 912.6 20 (CDM) projects registered with the 50 UNFCCC to date priorities. We operate our facilities with integrity and with the goal of preventing Indirect energy consumption (million GJ) - 21 18 21.2 18.6 40 15 environmental incidents. The principle of Pollution Prevention and Control (PPC) is central Energy savings (million GJ) - 13 14 17.9 16.9 30

MMSCFD to how we operate, and we concentrate our efforts on taking a proactive approach c 20 Oil spill incidents – to land and water (number) - - - 25 38 Million tonnes 10 76.4% towards environmental protection rather than one that focuses on remedial efforts alone. 10 Volume of oil released (boe) - - - 1,125.3 3,715.1 0 5 Reduction in flaring compared to Our operations are required to assess the environmental risks and impacts of new Volume of oil recovered (as a % of the volume of oil released) - - - 77 99.7 1995 levels

2009 2010 2011 2012 2013 0 projects and substantially altered existing projects, and ensue our risks are managed Environmental expenditure (AED million) >500 1.7 602 387.5 584 to an acceptable level and do not result in unacceptable consequences to our people, Upstream Gas processing a 2009 2010 2011 2012 2013 16.9 million GJ Minor amendments have been made to ADNOC’s 2012 flaring data. Refining Petrochemicals environment, assets and our reputation. This is supplemented with continuous b GHG emission values are based on equity share approach and derived using the Intergovernmental Panel for Climate Change (IPCC) 100-year Global environmental monitoring during the development and active phases of our projects Total GHG emissions Energy savings in 2013 Warming Potentials (GWP). across ADNOC operations and through to decommissioning. c Oil spill incidents reported are those that exceed one barrel of oil equivalent (boe).

SOCIETY 2009 2010 2011 2012 2013 Petroleum Institute (PI) Active scholarships sponsored Our approach graduates by ADNOC Active scholarships (number)a 833 964 1,236 1,497 3,289 3 As the national oil company of Abu Dhabi, ADNOC has an important role to play Society b in driving the creation of in-country value. We accomplish this in several ways that Petroleum Institute graduates 31 39 47 71 121 150 4,000 Academic institutes dedicated to include the transfer of knowledge and technology, investing in education and Petroleum Institute graduates – Emiratis (%) - - >67 66 43.8 providing world-class education research, job creation and development of local talent and the local supply chain, Emiratis in executive and senior 3,000 and research facilities 71 84 66.5 65 74 developing critical infrastructure to support our economy’s growth and development, management positions (%) 100 and the establishment of best practices across the oil and gas industry. Community investmentsc (AED million) ~ 4.7 19.2 25 106.4 137 2,000 Procurement budget spent on local suppliersd (%) - >75 >77 70 89 50 The broad and long-lasting socio-economic benefits generated by our operations 1,000 a Scholarships are awarded under ADNOC’s Scholarship Programme, which sponsors talented UAE nationals to pursue their post-secondary education in AED 137 million are never delivered at the expense of our commitment towards being a responsible reputable academic institutions in the UAE and abroad, and to specialise in the various technical disciplines essential to the oil and gas industry. corporate citizen. We strive to demonstrate this commitment through practical b The Petroleum Institute (PI) is one of ADNOC’s three academic institutes that offers bachelor and master degrees in several engineering disciplines of Community investments within the 0 actions undertaken in partnership with our stakeholders to ensure that our operations relevance to the oil and gas sector. 0 Emirate of Abu Dhabi in 2013 c Data excludes ADNOC’s broad infrastructure investments which are difficult to quantify because of their wide-ranging scale and diversity. are aligned with their interests and that we continue to build mutually beneficial d ADNOC defines local supplier as a provider of materials, products and services that is based in the UAE or has a local sponsor in the UAE. The sponsorship relationships. Our aim is to create opportunities that positively enhance the lives of 2009 2010 2011 2012 2013

arrangement often requires the sponsor to share a percentage of the contract with their sponsor, ensuring that a portion of the contract value is realised locally. 2009 2010 2011 2012 2013 Cautionary statement: Where ‘-’ is stated, the data is either not available for the reporting year or has been disclosed in the respective ADNOC sustainability people who work for us and live near our operations, as well as the society overall. report in a manner that is not consistent with collection and reporting methodologies that have taken effect after the data’s disclosure. In the latter case, the Number of PI graduates Number of active scholarships data has been omitted from this publication as it is not comparable with data reported for later years under revised reporting protocols. About ADNOC

Abu Dhabi National Oil Company and joint venture companies, marketing, maritime services and the (ADNOC) was established in 1971 collectively known as the ADNOC manufacture of petrochemicals. to pioneer the petroleum industry Group Companies. in the Emirate of Abu Dhabi, and ADNOC’s headquarters are located to develop the in-country value Thriving on a spirit of enterprise and in Abu Dhabi, UAE. Our major of the United Arab Emirates (UAE) a commitment to safely and reliably operations are based in the UAE, as a whole. Today, ADNOC is one deliver energy to our domestic although some of the ADNOC of the world’s leading oil and and global consumers, our Group Group Companies have offices in gas companies, with an annual Companies’ operations cover all other countries, such as Borouge, production of over 2.7 million aspects of the hydrocarbon value which has marketing operations barrels per day (bpd) and an chain, including crude oil and and representative offices in various integrated energy infrastructure natural gas exploration, production, countries worldwide. comprised of 15 specialist subsidiary refining, processing, global

Our leadership The SPC functions as ADNOC’s ADNOC reprts directly to the The Supreme Petroleum Council governing board and oversight SPC on matters of its financial (SPC) was established under law committee. H.H. Sheikh Khalifa Bin performance, which are regarded No. 1 of 1988, which stipulates that Zayed Al Nahyan, the president of as highly confidential under both the Council is the superior authority the UAE and Ruler of Abu Dhabi, is ADNOC and Abu Dhabi protocols. responsible for the petroleum the Chairman of the SPC. An external audit committee, chaired industry in the Emirate of Abu Dhabi. by a member of the SPC, provides Under H.H. Chairmanship, the independent assurance over The Council formulates Abu Dhabi’s Emiri decree on 25 June 2011 ADNOC’s financial performance and petroleum policy and follows up its was issued restructuring the SPC reports directly to the SPC. implementation across all areas of with membership from the ADNOC the petroleum industry to ensure Director General and a further 8 that the set goals are accomplished. independent members.

15 Group Companies About this publication: This is the fifth year that ADNOC has reported on its sustainability efforts. This publication provides that cover all aspects of the upstream and an executive summary of ADNOC’s 2013 operations in the downstream petroleum industry United Arab Emirates and ADNOC’s sustainability performance for the five year period starting from 1 January 2009 to 31 December 2013. To view our full ADNOC 2013 Sustainability Report, which has been prepared in accordance with the Global Reporting Initiative (GRI) Generation 3.1 (G3.1) Sustainability Reporting Guidelines (including the Oil and Gas Sector >2.7 million Supplement), please visit www.adnoc.ae/sustainability. barrels of oil production per day (bpd)

Please direct any questions regarding this publication or the full ADNOC 2013 Sustainability Report to:

Health, Safety and Environment Division Abu Dhabi National Oil Company >4.2 billion P.O. Box 898 Abu Dhabi, UAE standard cubic feet per day of net gas production Tel: +971 (0)2 6024740 Fax: +971 (0)2 6668089 [email protected]

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