1 Qatar Oil & Gas report December 2012 2 Acknowledgements Special thanks to Florence Verzelen and Majda Soussi from GDF SUEZ for their information and contacts provided, to Christopher Evans from Qatargas, Venus Mahmoud Khudir from Dolphin Energy, Mohamed Ahmed Mohamed Al-Rashid from Qatar Petroleum for their contribution, and to all the companies supporting the production of this report. 3 CONTENTS 5 TAKING THE SUSTAINABLE LEAD 6 THE NEW PROMISED LAND 7 BETTER, FASTER, HARDER, STRONGER 8 G AS- TO-LIQUIDS: THE PIONEER AND THE GIANT 8 S FA T, NOT FURIOUS 10 FROM GAS TO CROPS 10 A KNOWLEDGE-BASED ECONOMY 11 FOR BETTER, FOR WORSE, FOR RICHER, FOR POORER, IN SICKNESS AND IN HEALTH 12 INTERCONNECTION POWER 12 There’s TIME ENOUGH, BUT NONE TO SPARE 14 WE ARE THE CHAMPIONS 14 NOW HIRING, SKILLED, FAST, AND SMART-LEARNING MANPOWER 14 NOT IN THE SAME BASKET INTERVIEWS 16 INTERVIEW WITH H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy & Industry - State of QA- TAR, Chairman & Acting Managing Director of Qatar Petroleum 18 INTERVIEW WITH Mr. Issa Al-Ghanim Governor of Qatar for OPEC 20 INTERVIEW WITH Khalid bin Khalifa Al-Thani, CEO of Qatargas 22 INTERVIEW WITH Wael Sawan - Executive Vice President Qatar Shell GTL Ltd 24 INTERVIEW WITH Adel Ahmed Albuainain - General Manager Dolphin Energy Qatar 26 INTERVIEW WITH Bart Cahir President and General Manager, ExxonMobil Qatar 28 INTERVIEW WITH Florence Verzelen, General Manager, GDF Suez Qatar 30 INTERVIEW WITH Lewis Affleck - Managing Director Maersk Oil Qatar 32 INTERVIEW WITH Paul Navratil Energy, Utilities and Mining Leader, Peter Gordon, Senior Manager PwC Middle East 34 INTERVIEW WITH M. Finbarr Sexton Partner – Ernst & Young Qatar 36 INTERVIEW WITH Dr. Mazen O. Hasna - Dean College of Engineering at Qatar University This report was prepared by Focus Reports Project Director: Christophe Bonami. Editorial Coordinator & Journalist: Nala Nouraoui. Chief Editor: Eric Watkins Copyright All rights reserved. No part of this publication maybe reproduced in any form or by any means, whether electronic, mechanical or otherwise including photocopying, recording or any information storage or retrieval system without prior written consent of Focus Reports. While every attempt is made to ensure the accuracy of the information contained in this report, neither Focus Reports nor the authors accept any liabilities for errors and omissions. Opinions expressed in this report are not necessarily those of the authors. 4 advertisement QATAR TAKING THE SUSTAINABLE LEAD oha in summer. The mercury is flirting with 50 degrees Celsius, and sand dunes surround tall skyscrapers. When looking at the sparse Dvegetation of the peninsula, one can seriously wonder if Qatar is actually located on one of the Earth’s richest locations in terms of natu- ral resources. Qatar was blessed by the discovery of abundant natural gas resources after its independence in 1971, and quickly switched from a pearl-fishing economy to being the rising star of the Gulf, soon becoming one of the smallest, but richest countries on earth. Located between Iran and Saudi Arabia, Qatar has managed to create one of the region’s most stable business environments, attracting the best partners. While some people will think the rise of this tiny state is presumptuous , Qatar boasts the world’s highest GDP per capita and has achieved the fastest economic growth worldwide. This sponsored supplement was produced by Focus Reports. Project Director: Christophe Bonami. Editorial Ras Laffan Industrial City, Coordinator & Journalist: Nala Nouraoui. Editor: Eric Watkins. Report Publisher: Diana Viola. For exclusive Courtesy of QATARGAS interviews and more info, please log onto www.energy.focusreports.net or write to [email protected] www.ogfj.com • Oil & Gas Financial Journal December 2012 energy.focusreports.net 45 CarSas_OGFJ_1212 1 11/12/12 2:09 PM 5 advertisement QATAR TAKING THE SUSTAINABLE LEAD oha in summer. The mercury is flirting with 50 degrees Celsius, and sand dunes surround tall skyscrapers. When looking at the sparse Dvegetation of the peninsula, one can seriously wonder if Qatar is actually located on one of the Earth’s richest locations in terms of natu- ral resources. Qatar was blessed by the discovery of abundant natural gas resources after its independence in 1971, and quickly switched from a pearl-fishing economy to being the rising star of the Gulf, soon becoming one of the smallest, but richest countries on earth. Located between Iran and Saudi Arabia, Qatar has managed to create one of the region’s most stable business environments, attracting the best partners. While some people will think the rise of this tiny state is presumptuous , Qatar boasts the world’s highest GDP per capita and has achieved the fastest economic growth worldwide. This sponsored supplement was produced by Focus Reports. Project Director: Christophe Bonami. Editorial Ras Laffan Industrial City, Coordinator & Journalist: Nala Nouraoui. Editor: Eric Watkins. Report Publisher: Diana Viola. For exclusive Courtesy of QATARGAS interviews and more info, please log onto www.energy.focusreports.net or write to [email protected] www.ogfj.com • Oil & Gas Financial Journal December 2012 energy.focusreports.net 45 6 it reached $100 billion, thanks to develop- charismatic QatarGas CEO Khalid bin Khalifa Al-Thani. For him, what matters most is that, ment of the country’s world-class oil and “Qatargas becomes the world’s premier LNG Company by 2015, when we will be known Ras Laffan Industrial City, Courtesy of QATARGAS gas industry. State-owned QP, which holds for our people, innovation, operating excellence, environmental responsibility and corporate 51% of every joint venture in the country, has social citizenship.” attracted the most prestigious international Qatar also owes its prosperity to the contribution of RasGas, another successful national oil companies (IOCs) as partners, enabling company. Established in 1993, RasGas has been supplying the local market with some 2 bil- the country to achieve the fastest success lion cubic feet per day of gas or about two-thirds of Qatar’s domestic demand. That figure story in the history of natural gas production and become the world’s leading exporter of natural gas with 77 million tonnes per annum (tpa) in 2011. Better, Faster, Harder, Stronger “In the Gulf, economic growth and change have always come from the oil and gas industry. It is the incubator, not only for '&@1"201 2!16'2) the oil and gas economy but also for the ()')%& national knowledge economy,” said Paul 2!1'2)0 1'' Navratil, Energy, Utilities and Mining Leader for PricewaterhouseCoopers (PwC) Middle East. Knowledge has certainly been the But one wonders if Qatar will manage to plan The new promised land driver of the world-class ambitions of the a sustainable and long-term growth without The fast pace at which Qatar achieved its enviable performances and country, as the technology existing in Qatar being infatuated by its admirable success in the stood out as a world class LNG producer is astounding. But that fast is one of the most advanced in the world. field of energy. Qatar already is trying to miti- pace is not a coincidence, according to His Excellency Dr. Moham- ExxonMobil, the country’s largest American gate the collateral risks of its booming natural med Bin Saleh Al-Sada, Minister of Energy and Industry, Chairman investor, has a privileged role with Qatar gas industry by implementing new measures and Acting Managing Director of Qatar Petroleum (QP). “Qatar’s Petroleum and the State of Qatar in the H.E. Dr. Mohamed Bin that are part of Qatar Vision 2030, a vast vision- Saleh Al-Sada, Minister LNG journey to become the largest exporter of the product in the fast growth of the country, participating of Energy & Industry of ary program imagined by the Emir of Qatar, His Qatar, Chairman and Act- world in a short span of time is a saga of transformation of a powerful in 12 of Qatar’s 14 LNG trains. Qatargas ing Managing Director of Highness Sheikh Hamad bin Khalifa Al Thani. Qatar Petroleum vision into reality,” he said. 2, the largest integrated LNG project of Qatar Vision 2030 “envisages a vibrant and prosperous country in which According to the Minister, Qatar managed to utilize its bountiful Qatar, in which ExxonMobil was the major there is economic and social justice for all, and in which nature and man hydrocarbon resources through sustainable investment in the energy shareholder, required $12 billion in financ- are in harmony. We need to galvanize our collective energies and direct sector and helped raise the global standards of ing, 52 lenders and some 50,000 contrac- them toward these aspirations.“ said the country’s ruler. The main pillars the liquefied natural gas (LNG) market. “Today, tors. Qatargas was established in 1984 and directly related to the energy industry are managed growth and uncon- we can say with confidence that we have taken stands as a pioneer in the LNG industry in trolled expansion; the size and the quality of the expatriate labor force; the the LNG business to an entirely new level and Qatar. It is now the largest LNG producing selected path of development; economic growth; social development; it is up to others to emulate our model,” Al- company on earth, supplying long-term cus- and environmental management. Those measures will require substantial Sada said. In 2000, the energy sector contrib- tomers worldwide. Khalid bin Khalifa Al-Thani, change, and will shape the oil and gas industry of tomorrow in Qatar. uted $11 billion to Qatar’s GDP, while in 2010 CEO of QATARGAS It is certainly a proud achievement for the CarErn_OGFJ_1212 1 11/9/12 2:40 PM 46 energy.focusreports.net December 2012 Oil & Gas Financial Journal • www.ogfj.com www.ogfj.com • Oil & Gas Financial Journal December 2012 energy.focusreports.net 47 7 it reached $100 billion, thanks to develop- charismatic QatarGas CEO Khalid bin Khalifa Al-Thani.