In the name of GOD The Most Gracious, The Most Merciful 1 2 His Highness Sheikh Hamad Bin Khalifa Al-Thani The Emir of the State of Qatar 3 4 His Highness Sheikh Tamim Bin Hamad Al-Thani The Heir Apparent 5 Annual Report ContentsContents Qatar Petroleum 8 Board of Directors 10 Message from the Chairman 12 2011 Highlights 14 Key Consolidated Financial Information 16 17 Administration Human Resources Services Corporate Training Services Medical Services General Services Qatarization HSE Regulations & Enforcement Directorate 19 Information and Communication Technology 20 Technical Directorate 22 Crude Oil and Natural Gas 24 Dukhan Operations Offshore Operations EPSA/DPSA North Field Al-Khaleej Gas Project (AKG) Barzan Gas Project Drilling Department Halul Island LNG 34 Qatargas RasGas 6 Annual Report ContentsContents Pipelines 38 Dolphin Project NGL and Local Gas 39 QP Gas Operations Refining 41 QP Refinery Laffan Refinery Oryx GTL Pearl GTL 45 Petrochemical Industries Qatar Fertiliser Company Qatar Melamine Company Qatar Petrochemical Company Ltd. Qatar Fuel Additives Company Qatar Vinyl Company Qatar Chemical Company Qatar Chemical Company II Ltd. Ras Laffan Olefins Company Qatofin Company Limited Seef Limited Industrial Cities 53 Mesaieed Industrial City Ras Laffan Industrial City 59 Other Industries and Supporting Services Gulf Helicopters Company Qatar Steel Company (QSC) Qatar Plastic Products Company (QPPC) Qatar Aluminium (Qatalum) Qatar Petroleum International (QPI) Gulf Drilling International (GDI) Financial Statements 67 7 Annual Report Qatar Petroleum CommittedCommitted toto ExcellenceExcellence atar Petroleum (QP), formerly Qatar General QP’s strategy of conducting hydrocarbon Petroleum Corporation, is a state-owned exploration and development are through publicQ corporation established by Emiri Decree Exploration and Production Sharing Agreements No 10 in 1974. It is responsible for all phases of (EPSA) and Development and Production Sharing the oil and gas industry in Qatar. The principal Agreements (DPSA) concluded with major activities of Qatar Petroleum, its subsidiaries and international oil and gas companies. joint ventures are the exploration, production and sale of crude oil, natural gas and gas The operations and activities of Qatar Petroleum liquids and refined products, production and are conducted at various onshore locations, sale of petrochemicals, fuel additives, fertilisers, including Doha, Dukhan and the Mesaieed and liquefied natural gas (LNG), steel, aluminium, Ras Laffan Industrial Cities, as well as offshore chartering of helicopters, underwriting insurance areas, including Halul Island, offshore production and other services. The principal place of stations, drilling platforms and the North Field. business of QP is the State of Qatar. The following are QP’s subsidiaries, joint ventures and other investments: A. Subsidiaries Country of Effective Percentage Registration Holding in 2011 Al Shaheen Holding Q.S.C. Qatar 100.0% Amwaj Catering Services Company Limited Qatar 100.0% Gulf International Services Q.S.C. Qatar 30.0% Industries Qatar Q.S.C. Qatar 70.0% Qatar Holding Intermediate Industries Company Limited Qatar 100.0% Qatar Petroleum International Limited Qatar 100.0% Qatar Petroleum Qatar Gas (3) Limited Qatar 100.0% Qatar Petroleum Qatar Gas (4) Company Limited Qatar 100.0% Qatar Petroleum RasGas (3) Limited Qatar 100.0% B. Joint Ventures Astad Engineering Consulting and Project Management Q.S.C. Qatar 50.0% (Previously Qatar Engineering Consultancy Company Limited) Barzan Gas Company Limited Qatar 93.0% Gasal Q.S.C. Qatar 30.5% Laffan Refinery Company Limited Qatar 51.0% Oryx GTL Limited Qatar 51.0% Qatar Aluminium Company Limited Qatar 50.0% Qatar Chemical Company Ltd. Q.S.C. Qatar 51.0% Qatar Chemical Company Limited (II) Qatar 51.0% Qatar Gas Operating Company Limited Qatar 70.0% Qatar Liquefied Gas Company Limited (II) Q.S.C. Qatar 67.5% Qatar Liquefied Gas Company Limited Q.S.C. Qatar 65.0% Qatar Vinyl Company Limited Q.S.C. Qatar 73.0% Qatargas Upstream Joint Venture (Unincorporated) Qatar 65.0% Qatex Limited Qatar 51.0% Qatofin Company Limited Q.S.C. Qatar 35.6% Ras Laffan Liquefied Natural Gas Company Limited Qatar 63.0% Ras Laffan Liquefied Natural Gas Company Limited (II) Qatar 67.1% Ras Laffan Olefins Company Limited Q.S.C. Qatar 44.5% RasGas Company Limited Qatar 70.0% 8 Annual Report C. Joint Ventures and Subsidiaries of QP Subsidiaries Country of Effective Percentage Registration Holding in 2011 Subsidiaries of QP Subsidiaries Al Koot Insurance and Reinsurance Company SAQ Qatar 30.0% Al Shaheen Energy Services Limited UK 100.0% Al Shaheen Energy Services L.L.C. USA 100.0% Gulf Helicopters Company Q.S.C. Qatar 30.0% Qatar Steel Company Limited Qatar 70.0% Qatar Petroleum LNG Services (QG II) Limited Qatar 100.0% Qatar Petroleum Gas Trading (QG II) Limited Qatar 100.0% Qatar Terminal Company Limited Qatar 100.0% Joint Ventures of QP Subsidiaries Al Shaheen GE Services Company Qatar 50.0% Al Shaheen Weatherford Q.S.C. (formerly Al Shaheen Well Services) Qatar 50.0% Gulf Drilling International Limited Qatar 21.0% Qatar Fertiliser Company SAQ Limited Qatar 52.5% Qatar Fuel Additives Company Limited Qatar 35.0% Qatar Liquefied Gas Company Limited (3) Qatar 68.5% Qatar Liquefied Gas Company Limited (4) Qatar 70.0% Qatar Petrochemical Company Limited Qatar 56.0% Ras Laffan Liquefied Natural Gas Company Limited (3) Qatar 70.0% Seef Limited Qatar 80.0% D. Other Investments Arab Maritime Petroleum Transport company Kuwait 14.8% Arab Petroleum Investment Corporation Saudi Arabia 10.0% Arab Petroleum Pipelines Company Egypt 5.0% Arab Petroleum Services Company Libya 10.0% Arab Shipbuilding and Repair Yard Company Bahrain 18.8% Gulf United Steel Holding Company – Bahrain Bahrain 17.5% Messaied Power Company – Qatar Qatar 20.0% Nakilat Agency Company – Qatar Qatar 5.0% Qatar Navigation QSC (Milaha) – Qatar Qatar 9.4% Qatar Electricity & Water Company Qatar 11.4% Qatar Fuel QSC (Woqod) - Qatar Qatar 40.0% Qatar Gas Transportation Company Ltd. (Nakilat) - Qatar Qatar 10.0% Qatar Metals Coating Company – Qatar Qatar 35.0% QPI & Shell Petrochemicals (Singapore) PTE Limited (“QSPS”) Singapore 49.0% Ras Girtas Power Company – Qatar Qatar 15.0% Ras Laffan Power Company - Qatar Qatar 10.0% South Steel Company - Saudi Arabia Saudi Arabia 20.8% Sphere Minerals Limited – Australia Australia 5.4% Taoudenni Blocks Mauritania Mauritania 20.0% United Helicharters Private Limited – India India 10.8% Others * * These represent various investments mainly in the Qatar Exchange and the effective QP interest is less than 5%. 9 Annual Report QP Board of Directors Chairman and Managing Director HE Dr. Mohammed bin Saleh Al-Sada Minister of Energy and Industry Deputy Chairman Member Hamad Rashid Al-Mohannadi Fahad Hamad Al-Mohannadi Managing Director General Manager RasGas Qatar Electricity & Water Company (QEWC) 1100 Annual Report Member Member Nasser Khalil Al-Jaidah Saad Sherida Al-Kaabi CEO Director, Oil & Gas Ventures Qatar Petroleum International (QPI) Qatar Petroleum Member Member Khalifa Abdulla Al-Sowaidi Essa Hilal Al-Kuwari Managing Director President Qatar Fertiliser Company (QAFCO) Qatar General Electricity & Water Corporation (Kahramaa) 1111 Annual Report MessageMessage fromfrom thethe ChairmanChairman atar continued in 2011 to chart its path of enviable economic growth, unaffected by post 2008 financial crisis and the weaknesses in major developed economies This isQ reflected in Qatar’s major infrastructure and industrial development plans as envisioned by His Highness Sheikh Hamad Bin Khalifa Al-Thani, The Emir, which includes construction of mega projects in the transportation sector, development of new airport and seaport, rapid expansion of health and education sectors, besides plans for construction of new facilities for the FIFA World Cup in 2022. These planned developments require additional power and desalinated water supplies. Hence it has substantially increased the projected demand for energy in the State over the next decade. In line with its responsibility toward the national economy and to meet its customers’ needs and contractual obligations, Qatar Petroleum has responded by developing robust plans commensurate with these economic and political challenges to ensure the availability of clean fuel and hydrocarbon products required by the various economic sectors in the State of Qatar. To meet the country’s future needs for the clean fuel for its power and water sectors and to provide feedstock to the local petrochemical and refining industries, Qatar Petroleum has commenced the construction of the strategic multi-faceted Barzan gas project. This project, which is expected to be fully operational by 2014, is an essential building block for Qatar›s future and will bring extensive benefits to many local industries. In line with the development strategy of Qatar Petroleum, Ras Girtas Power Company inaugurated Qatar’s largest power plant at Ras Laffan Industrial City. This plant has a design capacity of 2730 MW of electric power and 63 million gallons of desalinated water daily. With this capacity addition, Qatar’s power and drinking water capacities have risen to 9000 MW and 325 million gallons a day respectively. Another development that symbolizes the commitment and ability of Qatar Petroleum to live up to its responsibility towards national development is the plan to increase the production of refined products through constructing the second Laffan condensate refinery. The refinery