Qatar - EnergyBoardroom · tors. Qatargas was established in 1984 and stands as a pioneer in the...

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QatarOil & Gas reportDecember 2012

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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

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

CopyrightAll 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.

contents

InteRVIeWs

5 Taking The susTainable lead

6 The new promised land

7 beTTer, fasTer, harder, sTronger

8 gas- To-liquids: The pioneer and The gianT

8 fasT, 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

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 OPEC20 inTerview wiTh

Khalid bin Khalifa Al-Thani, CEO of Qatargas22 inTerview wiTh

Wael Sawan - Executive Vice President Qatar Shell GTL Ltd24 inTerview wiTh

Adel Ahmed Albuainain - General Manager Dolphin Energy Qatar26 inTerview wiTh

Bart Cahir President and General Manager, ExxonMobil Qatar28 inTerview wiTh

Florence Verzelen, General Manager, GDF Suez Qatar30 inTerview wiTh

Lewis Affleck - Managing Director Maersk Oil Qatar32 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 Qatar36 inTerview wiTh

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

4

CarSas_OGFJ_1212 1 11/12/12 2:09 PM

This sponsored supplement was produced by Focus Reports. Project Director: Christophe Bonami. Editorial Coordinator & Journalist: Nala Nouraoui. Editor: Eric Watkins. Report Publisher: Diana Viola. For exclusive

interviews and more info, please log onto www.energy.focusreports.net or write to [email protected]

TAKING THE SUSTAINABLE LEAD

QATAR

Doha in summer. The mercury is flirting with 50 degrees Celsius, and sand dunes surround tall skyscrapers. When looking at the sparse vegetation 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.

Ras Laffan Industrial City, Courtesy of QATARGAS

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

advertisement

5

This sponsored supplement was produced by Focus Reports. Project Director: Christophe Bonami. Editorial Coordinator & Journalist: Nala Nouraoui. Editor: Eric Watkins. Report Publisher: Diana Viola. For exclusive

interviews and more info, please log onto www.energy.focusreports.net or write to [email protected]

TAKING THE SUSTAINABLE LEAD

QATAR

Doha in summer. The mercury is flirting with 50 degrees Celsius, and sand dunes surround tall skyscrapers. When looking at the sparse vegetation 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.



advertisement

6


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

But one wonders if Qatar will manage to plan

a sustainable and long-term growth without

being infatuated by its admirable success in the

field of energy. Qatar already is trying to miti-

gate the collateral risks of its booming natural

gas industry by implementing new measures

that are part of Qatar Vision 2030, a vast vision-

ary program imagined by the Emir of Qatar, His

Highness Sheikh Hamad bin Khalifa Al Thani.

Qatar Vision 2030 “envisages a vibrant and prosperous country in which

there is economic and social justice for all, and in which nature and man

are in harmony. We need to galvanize our collective energies and direct

them toward these aspirations.“ said the country’s ruler. The main pillars

directly related to the energy industry are managed growth and uncon-

trolled expansion; the size and the quality of the expatriate labor force; the

selected path of development; economic growth; social development;

and environmental management. Those measures will require substantial

change, and will shape the oil and gas industry of tomorrow in Qatar.

The new promised land The fast pace at which Qatar achieved its enviable performances and

stood out as a world class LNG producer is astounding. But that fast

pace is not a coincidence, according to His Excellency Dr. Moham-

med Bin Saleh Al-Sada, Minister of Energy and Industry, Chairman

and Acting Managing Director of Qatar Petroleum (QP). “Qatar’s

LNG journey to become the largest exporter of the product in the

world in a short span of time is a saga of transformation of a powerful

vision into reality,” he said.

According to the Minister, Qatar managed to utilize its bountiful

hydrocarbon resources through sustainable investment in the energy

sector and helped raise the global standards of

the liquefied natural gas (LNG) market. “Today,

we can say with confidence that we have taken

the LNG business to an entirely new level and

it is up to others to emulate our model,” Al-

Sada said. In 2000, the energy sector contrib-

uted $11 billion to Qatar’s GDP, while in 2010 Khalid bin Khalifa Al-Thani, CEO of QATARGAS

H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy & Industry of Qatar, Chairman and Act-ing Managing Director of Qatar Petroleum


it reached $100 billion, thanks to develop-

ment of the country’s world-class oil and

gas industry. State-owned QP, which holds

51% of every joint venture in the country, has

attracted the most prestigious international

oil companies (IOCs) as partners, enabling

the country to achieve the fastest success

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

the oil and gas economy but also for the

national knowledge economy,” said Paul

Navratil, Energy, Utilities and Mining Leader

for PricewaterhouseCoopers (PwC) Middle

East. Knowledge has certainly been the

driver of the world-class ambitions of the

country, as the technology existing in Qatar

is one of the most advanced in the world.

ExxonMobil, the country’s largest American

investor, has a privileged role with Qatar

Petroleum and the State of Qatar in the

fast growth of the country, participating

in 12 of Qatar’s 14 LNG trains. Qatargas

2, the largest integrated LNG project of

Qatar, in which ExxonMobil was the major

shareholder, required $12 billion in financ-

ing, 52 lenders and some 50,000 contrac-

tors. Qatargas was established in 1984 and

stands as a pioneer in the LNG industry in

Qatar. It is now the largest LNG producing

company on earth, supplying long-term cus-

tomers worldwide.

It is certainly a proud achievement for the

charismatic QatarGas CEO Khalid bin Khalifa Al-Thani. For him, what matters most is that,

“Qatargas becomes the world’s premier LNG Company by 2015, when we will be known

for our people, innovation, operating excellence, environmental responsibility and corporate

social citizenship.”

Qatar also owes its prosperity to the contribution of RasGas, another successful national

company. Established in 1993, RasGas has been supplying the local market with some 2 bil-

lion cubic feet per day of gas or about two-thirds of Qatar’s domestic demand. That figure

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CarErn_OGFJ_1212 1 11/9/12 2:40 PM

7



But one wonders if Qatar will manage to plan

a sustainable and long-term growth without

being infatuated by its admirable success in the

field of energy. Qatar already is trying to miti-

gate the collateral risks of its booming natural

gas industry by implementing new measures

that are part of Qatar Vision 2030, a vast vision-

ary program imagined by the Emir of Qatar, His

Highness Sheikh Hamad bin Khalifa Al Thani.

Qatar Vision 2030 “envisages a vibrant and prosperous country in which

there is economic and social justice for all, and in which nature and man

are in harmony. We need to galvanize our collective energies and direct

them toward these aspirations.“ said the country’s ruler. The main pillars

directly related to the energy industry are managed growth and uncon-

trolled expansion; the size and the quality of the expatriate labor force; the

selected path of development; economic growth; social development;

and environmental management. Those measures will require substantial

change, and will shape the oil and gas industry of tomorrow in Qatar.

The new promised land The fast pace at which Qatar achieved its enviable performances and

stood out as a world class LNG producer is astounding. But that fast

pace is not a coincidence, according to His Excellency Dr. Moham-

med Bin Saleh Al-Sada, Minister of Energy and Industry, Chairman

and Acting Managing Director of Qatar Petroleum (QP). “Qatar’s

LNG journey to become the largest exporter of the product in the

world in a short span of time is a saga of transformation of a powerful

vision into reality,” he said.

According to the Minister, Qatar managed to utilize its bountiful

hydrocarbon resources through sustainable investment in the energy

sector and helped raise the global standards of

the liquefied natural gas (LNG) market. “Today,

we can say with confidence that we have taken

the LNG business to an entirely new level and

it is up to others to emulate our model,” Al-

Sada said. In 2000, the energy sector contrib-

uted $11 billion to Qatar’s GDP, while in 2010 Khalid bin Khalifa Al-Thani, CEO of QATARGAS

H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy & Industry of Qatar, Chairman and Act-ing Managing Director of Qatar Petroleum


it reached $100 billion, thanks to develop-

ment of the country’s world-class oil and

gas industry. State-owned QP, which holds

51% of every joint venture in the country, has

attracted the most prestigious international

oil companies (IOCs) as partners, enabling

the country to achieve the fastest success

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

the oil and gas economy but also for the

national knowledge economy,” said Paul

Navratil, Energy, Utilities and Mining Leader

for PricewaterhouseCoopers (PwC) Middle

East. Knowledge has certainly been the

driver of the world-class ambitions of the

country, as the technology existing in Qatar

is one of the most advanced in the world.

ExxonMobil, the country’s largest American

investor, has a privileged role with Qatar

Petroleum and the State of Qatar in the

fast growth of the country, participating

in 12 of Qatar’s 14 LNG trains. Qatargas

2, the largest integrated LNG project of

Qatar, in which ExxonMobil was the major

shareholder, required $12 billion in financ-

ing, 52 lenders and some 50,000 contrac-

tors. Qatargas was established in 1984 and

stands as a pioneer in the LNG industry in

Qatar. It is now the largest LNG producing

company on earth, supplying long-term cus-

tomers worldwide.

It is certainly a proud achievement for the

charismatic QatarGas CEO Khalid bin Khalifa Al-Thani. For him, what matters most is that,

“Qatargas becomes the world’s premier LNG Company by 2015, when we will be known

for our people, innovation, operating excellence, environmental responsibility and corporate

social citizenship.”

Qatar also owes its prosperity to the contribution of RasGas, another successful national

company. Established in 1993, RasGas has been supplying the local market with some 2 bil-

lion cubic feet per day of gas or about two-thirds of Qatar’s domestic demand. That figure

��

��

��

��

��

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��

��

��

��

��

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CarErn_OGFJ_1212 1 11/9/12 2:40 PM

8

GAS-TO-LIQUIDS: THE PIONEER AND THE GIANTDriven by innovation. That’s how officials of South Africa’s cutting

edge Suid Afrikaanse Steenkool en Olie (Sasol) like to describe

their firm. That’s especially true of Marjo Louw, the President of

Sasol Qatar, which jointly owns ORYX GTL with Qatar Petroleum

(QP). Based in Qatar’s Ras Laffan Industrial City, ORYX GTL uses

Sasol’s innovative gas to liquids (GTL) technology to convert natu-

ral gas into liquid fuel products. Marjo Louw comments on the

success of Sasol’s operations:

OGFJ: QP and Sasol launched ORYX GTL, which is Qatar’s first-ever GTL project. What were your main challenges and successes in this project?

Louw: We faced many challenges and we

had to mobilize a large number of skilled

personnel. The plant has now been run-

ning for five years and there are up to 40

nationalities working there. The safety

record is absolutely world-class; for the

last few months it has been operating

with reportable case rates of 0.00, which

is world-class. The final results show that

everything has been well executed, and

much of our success is directly due to our good cooperation and

strong relations with QP.

OGJF: Given the success of ORYX GTL, do you see it as a model that you can apply to other GTL facilities abroad? Louw: We believe it is our global GTL flagship and we have

started developing a similar GTL plant in Nigeria with confidence.

We are working on a similar project in Uzbekistan and we are

looking at Canada and the USA. Our success in Qatar helps our

company with our future vision and with implementing strategies.

It acts as an ambassador of our vision and for what we can do

elsewhere.

OGJF: What’s the future of GTL in Qatar, and how is Sasol contributing to it?

Louw: The future for GTL is starting to shine. Sasol’s technology

was unique to Qatar and to the world. It was in some ways experi-

mental, but the strong vision and strategic foresight of H.H. the

Emir and H.E. Abdullah Bin Hamad Al Attiyah, former Minister of

Energy and Industry, and currently supported by H.E. Dr. Al-Sada,

Minister of Energy and Industry, established Qatar as the GTL

capital of the world with Oryx GTL.

CarChe_OGFJ_1212 1 11/9/12 2:25 PM


Qatar does hold the world’s third-largest gas reserves, but it is deter-

mined to use them reasonably. It wants to use them at a pace that

can be slowed down or put on hold, regardless of investments made

by IOCs at the time of gas discovery. The big question facing com-

panies that have already invested or those wanting to do so, is to

know whether the moratorium will be lifted in 2014 or extended by

will soon rise on completion of the giant Barzan project, which will

be devoted entirely to the domestic market.

After ORYX GTL’s bright success, the reputation of this new Eldo-

rado of GTL spread rapidly. Royal Dutch Shell, which already had

launched a GTL project at Bintulu in Malaysia in 1993, decided to

continue the GTL adventure with a giant step forward: the Pearl GTL

project. Inaugurated in late 2011, Pearl GTL makes Shell the single

largest foreign investor in Qatar, with up to $21 billion. “The signifi-

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

making it one of the highest value countries for the Shell group a

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

explains Qatar Shell Chairman Wael Sawan.

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

the outstanding production performances and the investment in

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

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

the country decided in 2005 to establish a moratorium on the North

Field, fearing that faster production could damage the reservoir.

Marjo Louw, President, Sasol Qatar

Offshore platform, courtesy of TOTAL E&P QATAR




























elsewhere.









CarChe_OGFJ_1212 1 11/9/12 2:25 PM




























CarChe_OGFJ_1212 1 11/9/12 2:25 PM

.

9




























elsewhere.









CarChe_OGFJ_1212 1 11/9/12 2:25 PM




























CarChe_OGFJ_1212 1 11/9/12 2:25 PM

10


the government, putting on hold all operations and future develop-

ments. The gas Eldorado is currently reduced to very few upstream

developments, allowing room for potential niches such as enhanced

oil recovery but leaving most companies disillusioned about the pos-

sibility of rapid development.

Some choose to listen to the voice of wisdom to grin and bear

it, such as Stéphane Michel, Managing Director of Total: “The mes-

sage about Qatar is to think long-term and not to take this transition

period as a slow-down, Qatar has the biggest gas field in the world

and when you are a contractor, it is during those phases of transition

that you build your future,” said Michel.

A knowledge-based economy Some oil and gas companies decide to make the best use of their

time left by the moratorium to heavily invest in research and devel-

opment (R&D). Carl Attalah, President of Chevron Qatar Ltd., says

his firm is, “taking the long view on Qatar, staying in the course for

potential future opportunities once the Moratorium is lifted.”

Chevron symbolizes the relationship companies are eager to have

with the state of Qatar, helping the country shape its future through

research on renewable energy. Chevron’s current main activity is

around energy efficiency and solar technology research. The com-

pany signed an agreement in 2009 to create the Center for Sustain-

able Energy Efficiency (CSEE) located at Qatar Science and Technol-

ogy Park, the country’s hub for research.

“Our solar and energy efficiency projects are part of a Corporate

Social Responsibility (CSR) project, aligned with His Highness the

Emir’s vision 2030. The Solar Test Facility aims to test different com-

mercially available photovoltaic technologies in the Qatar environ-

FROM GAS TO CROPSKhalifa Abdullah Al-Sowaidi, CEO of Qafco, Qatar’s leading player

in the fertilizer industry, tells Focus Reports about the opportuni-

ties for Qatar to diversify its economy.

FOCUS REPORTS: Qafco was the first joint venture in Qatar and acted as a pioneer for joint ventures. Can you tell us about the success story of a company that started as an SME?

Al-Sowaidi: After Qafco VI, our sixth urea

plant, we will have 5.6 million tons of urea

ready for export. That makes us the num-

ber one exporter in the world and will con-

tribute to 12.5% of the world-traded urea.

It also puts Qatar as the fourth country in

terms of production of urea, after China,

India, and Indonesia. It also makes Qafco

the largest single fertilizer producer in the

world.

FOCUS REPORTS: How do you assess your strengths com-pared to those of your competitors?

Al-Sowaidi: We are a large-scale company, operating a huge

plant with less manpower. With proximity to the sea, Qafco being

located just on the shore and having its dedicated jetties, we do

not do double handling of our products. So, it makes the quality

much higher than our competitors’.

FOCUS REPORTS: How would you define Qafco’s contribution in diversifying the economy of Qatar?

Al-Sowaidi: We do a lot of work that involves many local compa-

nies like mechanical SME’s. We contribute to the development

of the downstream sector and we help increase export earnings.

FOCUS REPORTS: How do you forecast the future of the fertil-izer industry?

Al-Sowaidi: The existence of mineral fertilizer today allows people

worldwide to be able to eat. Today, more than 60% of the total

food production depends on mineral fertilizers. Fertilizers have

created all this food for the last century and that has saved the

world from famine. A lot of people mistake us for a pesticide pro-

ducer. But we do not harm the planet. We feed the planet.

Khalifa Abdulla Al-SowaIdi, CEO, QAFCO

Nakilat flagship Mozah Courtesy of NAKILAT

CarKah_OGFJ_1212 1 11/12/12 1:50 PMwww.ogfj.com • Oil & Gas Financial Journal December 2012 energy.focusreports.net 51

ment. This information will help us select the

best technologies to use in this environment

going forward,” said Attalah. And Chevron

is being visionary, too. Qatar has natural gas,

but it also has another natural and unlimited

resource: the sun.

The CSEE at Qatar Science and Technol-

ogy Park will aim at educating people on

simple behavioral changes at home to cut

CO2 emissions, and it will research compo-

nents on efficient lighting technology.

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

Young Qatar, shared his expertise on Qatar’s

oil and gas Industry and on Qatar’s strate-

gic position, especially with Asia and Japan,

ensuring long-term growth. “With Qatar’s

reserves, Japan identified back in the 90s

the potential that Qatar had in being a

reliable supplier. It was easy to conclude

25-year contracts, knowing that it could eas-

ily be extended to a 200-year relationship.

The security of supply is amongst the key

attractions that Qatar holds in the eyes of

Japan and South Korea,” Sexton said.

Keiichi Yoneyama, General Manager of

Chubu Electric Power, said that Qatar and

Japan were like a married couple, always

together, for better or worse. Indeed, Qatar

has been present when Japan most needed

it. Qatar was among the first countries to

support Japan after the devastating 2011

earthquake, donating $100 million on behalf

of the government. As a sign of goodwill

among bilateral trade relations, Qatargas I

signed an agreement in June 2012 to deliver

one million tpa of LNG, under a long-term contract with Tokyo Elec-

tric Power Company (TEPCO). The agreement came as a response to

Japan’s need for LNG to compensate for the loss of the 50 or so nuclear

plants put on hold after the Fukushima Daiichi tragedy in March 2011.

In the context of economic uncertainty in Europe and the self-suffi-

ciency of North American markets due to shale gas, Asia appears as the

partner of choice for the future of Qatar. Still, according to Sexton, there

are a few concerns over competition with Australia, which “probably represents the biggest

Finbarr Sexton, Partner,Ernst & Young Qatar

11

CarKah_OGFJ_1212 1 11/12/12 1:50 PMwww.ogfj.com • Oil & Gas Financial Journal December 2012 energy.focusreports.net 51

ment. This information will help us select the

best technologies to use in this environment

going forward,” said Attalah. And Chevron

is being visionary, too. Qatar has natural gas,

but it also has another natural and unlimited

resource: the sun.

The CSEE at Qatar Science and Technol-

ogy Park will aim at educating people on

simple behavioral changes at home to cut

CO2 emissions, and it will research compo-

nents on efficient lighting technology.

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

Young Qatar, shared his expertise on Qatar’s

oil and gas Industry and on Qatar’s strate-

gic position, especially with Asia and Japan,

ensuring long-term growth. “With Qatar’s

reserves, Japan identified back in the 90s

the potential that Qatar had in being a

reliable supplier. It was easy to conclude

25-year contracts, knowing that it could eas-

ily be extended to a 200-year relationship.

The security of supply is amongst the key

attractions that Qatar holds in the eyes of

Japan and South Korea,” Sexton said.

Keiichi Yoneyama, General Manager of

Chubu Electric Power, said that Qatar and

Japan were like a married couple, always

together, for better or worse. Indeed, Qatar

has been present when Japan most needed

it. Qatar was among the first countries to

support Japan after the devastating 2011

earthquake, donating $100 million on behalf

of the government. As a sign of goodwill

among bilateral trade relations, Qatargas I

signed an agreement in June 2012 to deliver

one million tpa of LNG, under a long-term contract with Tokyo Elec-

tric Power Company (TEPCO). The agreement came as a response to

Japan’s need for LNG to compensate for the loss of the 50 or so nuclear

plants put on hold after the Fukushima Daiichi tragedy in March 2011.

In the context of economic uncertainty in Europe and the self-suffi-

ciency of North American markets due to shale gas, Asia appears as the

partner of choice for the future of Qatar. Still, according to Sexton, there

are a few concerns over competition with Australia, which “probably represents the biggest

Finbarr Sexton, Partner,Ernst & Young Qatar

12


their CO2 emissions, while production emissions are still registered

in Qatar.

Aware of the risks for the environment of such a fast-pace use of

natural resources, The Qatari state and many companies are taking

concrete measures to reduce their impact on the environment.

Although the bor-

der between envi-

ronmental CSR and

green-washing can

sometimes seem

unclear, the envi-

ronment appears to

be a true concern

for companies such

as Dolphin Energy,

the Emirati project

that produces and

processes natural

gas from Qatar's off-

shore North Field.

Dolphin plotted a

threat to the Qatari LNG industry, being much closer to the Far East

markets than Qatar. So there are inherent challenges with Australia

bringing on supply.”

There's time enough, but none to spare. If Qatar has built the backbone of its LNG industry with technology,

investment and research, the country must ready itself to exploit its

resources in the most sustainable way possible, taking into account

human and environmental factors that are under the risk of being

pushed aside in the face of such brisk growth. Qatar holds the first

place for three different rankings. One is outstanding: holding the

world’s highest GDP per capita. Two rankings are less glorious: the

highest pollution rate per capita and the second highest power

consumption rate in the region. In terms of actual volume of CO2

emission, Qatar contributed about 0.23% of global CO2 emissions

and ranked 47th among UN members. However, the ratio per capita

appears very high, given its small population of only 200,000 Qatari

nationals – out of 1.7 million inhabitants. The calculation also seems

to be unfair as Qatar produces natural gas and transforms it into

LNG, an industrial process that emits a lot of CO2. As natural gas is

the cleanest fossil fuel, its usage enables many countries to reduce

INTERCONNECTION POWEREssa Bin Hillal Al Kuwari, President of Qatar General Electricity

and Water Company (KAHRAMAA), gives his insight on energy

efficiency and regional integration.

OGFJ: What were the main difficulties inherent to Qatar’s fast growth that you had to face?

Al Kuwari: The booming growth of Qatar

over the last five years was a challenge for

us. All real estate or infrastructure projects

need electricity and water. Not a single

project can start without them. But we

succeeded.

OGFJ: What is KAHRAMAA doing at its operational level towards energy effi-ciency and reducing its impact on the environment?

Al Kuwari: We are trying with all our stakeholders to be a pioneer

in renewable energies, the most economic renewable source in

Qatar being solar. There is another initiative to cover one of our

mega reservoirs with photovoltaic panels to produce electricity.

OGFJ: What are you doing at your level to educate people on how to consume more responsibly?

Al Kuwari: We have launched a campaign called Tarsheed, aiming

to reduce consumption of water and electricity. There are two

goals: reducing the consumption of electricity by 20% per capita

and water consumption by 35% per capita.

OGFJ: What is the role that KAHRAMAA plays in the coopera-tion with Gulf Countries Council (GCC) countries?

Al Kuwari: Interconnection in water and electricity is very impor-

tant and it will lead to something even bigger in terms of regional

integration. This is the beauty of it: we are now interconnected

with the five GCC countries and Oman will come soon. Such

interconnection has proved to be successful and all countries

have enjoyed the benefits of it.

Essa Bin Hillal Al Kuwari, President, KAHRAMAA

Engineers at work, Courtesy of KAHRAMAA

13


their CO2 emissions, while production emissions are still registered

in Qatar.

Aware of the risks for the environment of such a fast-pace use of

natural resources, The Qatari state and many companies are taking

concrete measures to reduce their impact on the environment.

Although the bor-

der between envi-

ronmental CSR and

green-washing can

sometimes seem

unclear, the envi-

ronment appears to

be a true concern

for companies such

as Dolphin Energy,

the Emirati project

that produces and

processes natural

gas from Qatar's off-

shore North Field.

Dolphin plotted a

threat to the Qatari LNG industry, being much closer to the Far East

markets than Qatar. So there are inherent challenges with Australia

bringing on supply.”

There's time enough, but none to spare. If Qatar has built the backbone of its LNG industry with technology,

investment and research, the country must ready itself to exploit its

resources in the most sustainable way possible, taking into account

human and environmental factors that are under the risk of being

pushed aside in the face of such brisk growth. Qatar holds the first

place for three different rankings. One is outstanding: holding the

world’s highest GDP per capita. Two rankings are less glorious: the

highest pollution rate per capita and the second highest power

consumption rate in the region. In terms of actual volume of CO2

emission, Qatar contributed about 0.23% of global CO2 emissions

and ranked 47th among UN members. However, the ratio per capita

appears very high, given its small population of only 200,000 Qatari

nationals – out of 1.7 million inhabitants. The calculation also seems

to be unfair as Qatar produces natural gas and transforms it into

LNG, an industrial process that emits a lot of CO2. As natural gas is

the cleanest fossil fuel, its usage enables many countries to reduce

INTERCONNECTION POWEREssa Bin Hillal Al Kuwari, President of Qatar General Electricity

and Water Company (KAHRAMAA), gives his insight on energy

efficiency and regional integration.

OGFJ: What were the main difficulties inherent to Qatar’s fast growth that you had to face?

Al Kuwari: The booming growth of Qatar

over the last five years was a challenge for

us. All real estate or infrastructure projects

need electricity and water. Not a single

project can start without them. But we

succeeded.

OGFJ: What is KAHRAMAA doing at its operational level towards energy effi-ciency and reducing its impact on the environment?

Al Kuwari: We are trying with all our stakeholders to be a pioneer

in renewable energies, the most economic renewable source in

Qatar being solar. There is another initiative to cover one of our

mega reservoirs with photovoltaic panels to produce electricity.

OGFJ: What are you doing at your level to educate people on how to consume more responsibly?

Al Kuwari: We have launched a campaign called Tarsheed, aiming

to reduce consumption of water and electricity. There are two

goals: reducing the consumption of electricity by 20% per capita

and water consumption by 35% per capita.

OGFJ: What is the role that KAHRAMAA plays in the coopera-tion with Gulf Countries Council (GCC) countries?

Al Kuwari: Interconnection in water and electricity is very impor-

tant and it will lead to something even bigger in terms of regional

integration. This is the beauty of it: we are now interconnected

with the five GCC countries and Oman will come soon. Such

interconnection has proved to be successful and all countries

have enjoyed the benefits of it.

Essa Bin Hillal Al Kuwari, President, KAHRAMAA

Engineers at work, Courtesy of KAHRAMAA

CarQaf_OGFJ_1212 1 11/13/12 10:00 AM

14


contributing substantially to this initiative due to the approaching

deadline of having half of their staff composed of nationals by 2030,

and they are willing to take action to solve the human resources chal-

lenge. But organic changes in human resources should always come

from the root: education. Qatar University and Texas A&M University

have been very dynamic implementing measures and training ses-

sions together with companies.

Not in the same basket Qatar seems always to want to take action at a speed that is often

noted: investing abroad through the acquisition of football clubs,

Italian luxury brands, historical buildings in London and Paris, or

international bids for sports. But if the country is so eager to expand

its presence abroad and strategically use its petrodollars, it is also

because the State of Qatar realizes the need to diversify its economy

away from reliance on the oil and gas industry. The rapidity with

which Qatar is investing is just a symbol of its immediate willing-

ness to continue its path to reach the leading position in global LNG

production and to plan its long-term future, by attracting the right

international partners and creating trade relationships with the most

reliable markets. Prudently fast. Eager, but patient.

subsea pipeline route to the United Arab Emirates and Oman that

avoided important turtle breeding grounds and protected marine

habitats. Dolphin also initiated a flare reduction program to help

reduce emissions.

Qatar is determined to show the world it is not a careless polluter

by actually positioning itself under the spotlight for environment-

related events. Qatar is hosting COP 18, the UN conference on cli-

mate change in December 2012. That decision is considered quite

ironic by green activists, who accuse Qatar of trying to buy its way to

environmental respectability . But the act is symbolic of the efforts

made by the government to improve the situation by taking action.

The major priority will then be to raise awareness among the local

population, especially regarding power consumption, as Florence

Verzelen, General Manager of GDF SUEZ Qatar explains. “Energy

efficiency is Qatar’s major issue,” said Verzelen. “Qatar has the sec-

ond highest power consumption rate in the region, mainly because

of cheap electricity. Reducing the consumption will require strong

political will to change local habits”.

Now hiring: skilled, smart and fast-learning manpower “Having a qualified, motivated, high performing workforce is per-

haps this industry’s biggest challenge. It’s a regional problem, which

Qatar is experiencing, given the scarcity of national resource,” said

Peter Gordon, Senior Manager at PwC, about the human resources

challenge. While technology and facilities can be implemented at a

fast pace, human resources are a much slower issue that Qatar had

left behind until Qatarization was included in Qatar Vision 2030, a

measure aimed at reaching a target of 50% of Qatari nationals work-

ing in the energy sector. As companies might be craving for exper-

tise to harmonize with the pace of the booming industry demanding

know-how, the gestation period between advertising for a position

to getting the right person can take up to a year, having an effect on

day-to-day operations, compelling companies to implement long-

term human resources planning ahead of time. As Saudi Arabia and

the United Arab Emirates are facing the same needs, Qatar needs

to imagine a strategy to raise awareness and empowerment among

their local population, to train them as fast as possible to turn them

into the next energy leaders of tomorrow. Oil and gas companies are

WE ARE THE CHAMPIONS In 2022, Qatar will once again be

under the spotlight, as it will be

hosting the 2022 Football World

Cup. Meanwhile, a colossal amount

of work needs to be done to meet

the deadlines and requirements for

construction of stadiums, hotels, and

railways. Qatar won the bid thanks

to its commitment to organize a

carbon neutral world cup. For Carl

Atallah of Chevron, it will be a good

opportunity to implement solar pan-

els, but he explains that “The World Cup is a summer event,

therefore, achieving a carbon neutral World Cup is a big chal-

lenge,” bearing in mind that the temperatures might be up to

50 degrees, requiring air-conditioning in the stadiums.

Essa Hilal Al-Kuwari of KAHRAAMA foresees the challenges

but is ready to cope with them: “ It is a huge and hot issue, if

not the hottest. We don’t foresee any problems on the genera-

tion and transmission side and we need to make sure that the

distribution network will be able to support such a big event.

We will be ready!”

Carl Atallah, President Chevron Qatar

15

For exclusive ITVs and more insights, log on to

energy.focusreports.net

16Interview with H.E. Dr. Mohammed bin Saleh Al-Sada:

IntervIew wIth:

h.e. dr. mohamed bin saleh al-sada, minister of energy & industry - state of qaTar, chairman & acting managing director of qatar petroleum

H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of energy & industry - state of Qatar, ChairMan & aCting Managing direCtor of Qatar PetroleuM

Focus Reports: What do you consider the most salient events since you were appointed Minister of Energy & Industry , and what are the strategic pillars that will define Qatar’s energy industry for the medium term?H.E. DR. MoHAMMED Bin SAlEH Al-SADA: The wheel of economic progress of Qatar has been in motion since the early 1930s but its global eco-nomic ascendency over the past two decades has been driven by the enlightened leadership of His Highness, the Emir of the State of Qatar, Sheikh Hamad bin Khalifa Al Thani. Qatar’s bountiful hydrocarbon resources have been utilized in a sustainable manner through judicious investment in the energy sector con-tributing to all-round progress and prosperity. This process is ongoing.

Some of the major projects that have been completed during my tenure as the Minister of Energy & Industry are the ‘Pearl’ Gas to Liquids (GTL) Project, the Ras Girtas Power Company, and the Qafco-5 fertilizer project. Besides these, QAFCO-6 is due for inaugura-tion by the end of this year. All these projects have redefined the Qatar energy industry in the short-to-medium term.

We are also continuing our efforts to explore and develop new oil and gas fields, whilst enhancing the productivity of the exist-ing oil fields. The energy industry led by QP will continue to meet the increasing demand for energy and ensure the availability of hydrocarbon products needed by the various

economic sectors in the State of Qatar, includ-ing gas for the power sector and the various downstream ventures.

Our medium-term energy horizon also includes exploration of investment opportuni-ties in strategically viable energy projects around the world through our international arm, Qatar Petroleum International.

FR: Following H.H. the Emir’s vision, in just 14 years, Qatar has reached an LNG output capabil-ity of 77 million tonnes annually, ahead of players like Algeria, Malaysia and Indonesia. What do you believe has been the impact in the world energy landscape of the rise of a “fast new player” such as Qatar? What do you feel are your responsibili-ties as such – especially regarding pricing and security of supply? H.E. DR. MoHAMMED Bin SAlEH Al-SADA: Qatar’s LNG journey to become the largest exporter of the product in the world in a short span of time is a saga of transformation of a powerful vision into reality. Adopting prudent business policies and welcoming foreign investment, Qatar’s wise leadership helped direct more than $120 billion to develop about five million barrels of oil equivalent per day of new energy supplies for the global market. The rest is his-tory. It catapulted Qatar ahead of others as the leading supplier of LNG to the world.

While the massive expansion of our LNG business was taking place, we were mindful of the emergence of the changing market dynam-

17

H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of energy & industry - state of Qatar, ChairMan & aCting Managing direCtor of Qatar PetroleuM

ics. It was important for us to enhance our capabilities to adequately respond to these changes and assure security of supplies to the buyers in the global market.

We achieved these utilizing innovative technologies to scale up the LNG trains and develop the world’s largest LNG carriers. We also developed a new LNG business model, which allowed Qatar to become a truly global player in the industry, by transacting business both on oil and gas market-based pricing. Pur-suing this model, QP could sell LNG in every region of the world, adjusting its sales mix in-line with the market requirements. Today, we can say with confidence that we have taken the LNG business to an entirely new level, and it is up to others to emulate our model.

FR: Qatar has heavily invested in added value cre-ation with QP’s affiliated petrochemical compa-nies (QAFCO, QAPCO, QAFAC, QChem) operat-ing in Mesaieed industrial City. What are the results so far?H.E. DR. MoHAMMED Bin SAlEH Al-SADA: Qatar’s industrial diversification program started way back in 1969 when it embarked on adding value to its natural gas resources with the establishment of QAFCO, the Qatar Fertilizer Company. It was also the advent of Qatar’s pet-rochemical industry.

Today, Qatar produces about 10 million tons per year of different petrochemicals. Our petrochemical industry is on the threshold of further unprecedented growth. The signifi-cant increase in petrochemical exports from Qatar has enabled this vital sector to play a very active role in advancing and diversifying Qatar’s economy. It is our aim to consolidate Qatar’s position as one of the major interna-tional hubs for the petrochemical industry based on gas feedstock.

FR: How do you foresee the future of Qatar’s sta-bility and financial outlook?H.E. DR. MoHAMMED Bin SAlEH Al-SADA: There are several factors that lead to the economic, social and political stability of a nation or a

region and its financial well-being. In the case of Qatar, which has prospered by utilizing its hydrocarbon resources, the challenge is to sus-tain its prosperity over the long term by wise management of exhaustible resources to ensure optimum utilization of these resources and to create a balance between reserves and production, between economic diversification and the depletion of non-renewable hydrocar-bon resources. These resources can be lever-aged to make sustainable development a real-ity for its people. Converting these natural assets into financial wealth provides the means to invest in world-class infrastructure, to build efficient delivery mechanisms for pub-lic services, to create a highly skilled and pro-ductive labor force, and to support the devel-opment of entrepreneurship and innovation capabilities. These achievements would in turn provide a broader platform for the diversifica-tion of Qatar’s economy and its positioning as a regional hub for knowledge and for high-value industrial and service activities.

We are embarking on an economic diversi-fication in line with Qatar National Vision 2030 – a diversified economy that gradually reduces its dependence on the hydrocarbons industries, enhances the role of the private sector and maintains its competitiveness through expansion of industries and services with competitive advantages derived from hydrocarbon industries.

This leads to the development of human resources and economic capacities throughout Qatar in an environmentally sustainable man-ner, enabling the private sector to play an essential role in achieving sustainable devel-opment.

Last but not least, I must mention that we are striving to develop a knowledge-based economy characterized by innovation, entre-preneurship, excellence in education, a world-class infrastructural backbone, the efficient delivery of public services, and transparent and – above all – accountable governance.

18Interview with H.E. Dr. Mohammed bin Saleh Al-Sada

IntervIew wIth:

mr. issa al-ghanim – governor of qatar for opec

Mr. issa Al-Ghanim Governor of Qatar for OPEC

Focus Reports: How would you assess the current performances of the energy sector in Qatar?MR. iSSA Al-GHAniM: Qatar has achieved an incredible expansion in its LNG industry and more widely of its energy related businesses.

In 2000, Qatar’s GDP originating from the energy sector represented QR 39 billion ($ 11 billion). In 2011, it reached QR364 billion ($100 billion). It represents over 200% increase in real terms. Part of this growth is due to the oil price increase but most of it comes from the development of a world class gas industry in Qatar.

In 2011 Qatar LNG production reached a capacity of 77 million ton per annum (Mtpa) which represents 25% of the global LNG trade. Qatar built a completely new LNG business model, which allowed us to become a truly global player. Qatar can sell LNG in every region of the world, and can adjust its sales’ portfolio on a continuous basis to match mar-ket requirements. The Gas to Liquids (GTL) industry with the ORYX and the Pearl GTL project has created the capacity to produce from natural gas over 260 000 barrels/day of clean transportation fuels and different liquid petroleum products. Technology and business innovation has allowed us to build again a unique world class industry.

Further expansion of our Oil & Gas industry will focus on the downstream sector and espe-cially the petrochemical industry. These invest-ments target to add value to the condensates and natural gas liquids that are associated with the LNG production. As a whole, Qatar contin-ues to look at expanding its presence along the value chain of the global hydrocarbon industry.

FR: For the first time in more than 60 years, the

USA are exporting more petroleum products than they import. What are the consequences for the global and the regional Middle-East oil & gas indus-try?MR. iSSA Al-GHAniM: The United States are reduc-ing their dependence on oil import through the development of local resources in shale gas and tight oil. This evolution in the oil and gas indus-try raises many different issues in the down-stream and upstream areas as well as in the geopolitical domain.

First, less import in the US means more oil available to the rest of the world. Like in the case of LNG industry evolution, some of this supply will be redirected to the emerging coun-tries. The global oil industry growth will be led by Asia demand growth. According to the OPEC long term outlook, by 2035, 92% of the oil demand growth will come from the emerging countries.

Second, as new supplies enter the oil mar-ket, OPEC’s role to manage the volumes accord-ing to demand is challenged. OPEC production may have to be adjusted to this new situation.

Third, this past decade, the refining indus-try has evolved to transform heavier crudes, especially in the US. With this coming abun-dance of light oil and natural gas liquids from the US, the refining industry may have to read-just what should be the optimal product mix and the location of new refineries. As well, the actual renaissance of the petrochemical indus-try in the US will challenge the current cycle and impose some drastic geographic realloca-tion of market shares.

Last, the energy independent US may drive some change in their foreign policy towards the Middle-East and North African (MENA) region.

Altogether, it creates uncertainties over the

19

oil market future and over the kind of invest-ments levels and patterns in downstream as well as in upstream. Such uncertainties may delay investment decisions and as you know, the investment of today is the production of tomorrow.

FR: What new policies have been introduced to restrain the impact of the oil & gas sector’s activi-ties on the environment and how is OPEC pushing for the best environmental practices?MR. iSSA Al-GHAniM: In terms of actual volume of CO2 emission, the State of Qatar contrib-uted at about 0.23% of global CO2 emission and ranked 47th among UN members. Given its small population (1.7 million inhabitants) the ratio per capita appears very high.

The real issue is somewhere else: Qatar pro-duces natural gas and transforms it into LNG to transport it to market. Such an industrial process emits a lot of CO2. No LNG is con-sumed locally but the emissions to process it are accounted in Qatar. As the natural gas is the cleanest fossil fuel, its usage enables many countries to reduce their CO2 emissions. All together, it has a positive effect on the global balance of Green House Gas (GHG) emissions. The same reasoning over pollutants could apply to clean fuel products issued from the Qatari GTL plants.

The environmental sustainability issue is a very important subject. Qatar has launched many initiatives towards sustainable develop-ment. Some are to host conferences like the 13th UNECTAD last April 2012 on the sustain-able economic development or the next United Nation Climate Change conference, COP 18, in Doha in December 2012. Some are practical implementations like one of Qatar Petroleum’s recent achievements such as Al-Shaheen Gas Flare Recovery.

Further than its individual commitment, Qatar is associated with the other OPEC coun-tries to advocate responsible stewardship of the environment. OPEC supports comprehen-sive, fair and realistic efforts to reduce the environmental impacts of global energy use.

Like Qatar as hydrocarbons producers, OPEC supports the use of resources and technology to reduce gas flaring. In this area, OPEC Mem-bers have actively participated in the World Bank—Global Gas Flaring Reduction Partner-ship (GGFR).

FR: Qatar has embarked on an ambitious interna-tional expansion program, how do you think this strategy will strengthen Qatar’s global leadership?MR. iSSA Al-GHAniM: Since 2005, the country invests as an equity investor in different com-panies and international assets. It has a finan-cial approach to investment and looks world-wide at the potential investment opportunities.

On the other hand, Qatar Petroleum as well as other Qatari companies develop interna-tionally through organic growth, acquisition and Joint Ventures. Their approach is indus-trial to optimize their operations and to increase their value. In the oil & gas industry, Qatar Petroleum International (QPI) has been designated to run the international invest-ment. For instance, one of the recent projects is the co-investment in Singapore’s petrochem-ical activities with Shell.

As Qatar is extracting most of its revenue from exports, we are willing to make some investments with our commercial partners and invest in their economies. I think it is quite logical after having built up a major oil and gas business in Qatar that we should look at lever-aging that position by moving along the indus-try value chain, and entering similar busi-nesses in other countries.

As a country, we are looking not just to diversify into other parts of the hydrocarbons business but into new business areas as well. The revenue extracted from the production of hydrocarbons in Qatar is sufficient to cover the need of the current generation. But we need to avoid complacency and we must prepare for the next generations of Qataris.

20Khalid bin Khalifa Al-Thani, CEO of Qatargas

IntervIew wIth:

khalid bin khalifa al-Thani – ceo of qatargas

Khalid bin Khalifa Al-Thani, Ceo of Qatargas

Focus Reports: What were the key factors of suc-cess that allowed Qatargas to stand as the world’s largest producer of LNG in such a short period of time?KHAliD Bin KHAliFA Al-THAni: Qatargas was established in 1984 and pioneered the LNG industry in Qatar. Today, it is the largest LNG producing company in the world supplying customers in all four corners of the world from our first class facilities in Qatar.

We have quadrupled our energy exports with the completion of our expansion projects making Qatargas the biggest exporter of LNG, all within 15 years of our original train com-mencing production. Fast pace

We have during this time invested heavily to ensure not only our ability to meet the needs of our customers, but also proactively worked with the government of Qatar to ensure the responsible development of the North Field so we can contribute to the shared vision of meeting secure long-term energy demands.

Our growth to date has revolved around the vision of many people within Qatargas and the partnerships we have undertaken to give us the experience to implement our vision. We continue to use all available in our commit-ment to becoming the premier LNG company in the world.

Qatargas announced that it would be send-ing 11 million more tones of LNG to Japan in addition to the 9 million tones already agreed on last fall after the Great East Japan Earth-quake. How would you define the relationship between Qatar and Japan and how do you assess the opportunities of such a long-term partnership?

Japan is our foundation customer. We com-

menced long-term deliveries of LNG to Japan in 1996 and are now uniquely placed to help them. We opened our Japan Liaison Office in August 1996 in Nagoya for the purpose of facilitating good customer relations and liai-son with various Government authorities and organizations.

Qatargas currently supplies its consortium of 8 Japanese buyers with six million tonnes per annum of LNG on a long-term basis. Fur-thermore, following the tragic events of March 2011, we committed to supply around an addi-tional 10 million tonnes of LNG on a short-term basis to our Japanese customers, which is a clear indication of our ability, flexibility and reliability to be able to deliver LNG to wherever it is needed most.

Japan, its people and our customers are very important to us and we are doing all we can to support Japan’s requirement for stable supplies of energy.

FR: If Qatar is under such a rapid growth and pros-perity nowadays, it is mainly thanks to what has been achieved in the LNG industry, impacting on the society’s well being. At Qatargas, what are you doing to bring further support to the community?KHAliD Bin KHAliFA Al-THAni: Qatargas has introduced a high quality national develop-ment programme in order to meet its business objectives in this area and proactively support the Qatar National Vision (QNV) 2030 devel-opment goals.

For the second year running we have won the prestigious Qatarization Award for our contribution towards support for training and development as part of the QNV 2030. This recognition made us very proud. It under-scores once again the success of our Qatariza-

21

tion policy which focuses on ensuring Qatari participation in all fields of the company’s operations.

We have recently become the first company in Qatar to secure accreditation from the UK-based Institution of Engineering and Technol-ogy (IET) and the Institution of Chemical Engineers (IChemE) for successfully imple-menting a development programme for Qatari engineers and graduates.

FR: As producer of a clean energy, what are you doing to reduce your impact on the environment? KHAliD Bin KHAliFA Al-THAni: he LNG industry can help the world meet its energy needs by providing a clean, safe and reliable source of fuel. Qatar LNG will bring the benefits of energy diversity to our customers by giving them a clean burning, reliable fuel that can be used efficiently in power generation and by industrial, commercial and domestic con-sumer. In 2011, Qatargas received the first ever ‘Green Award’ for its fleet of LNG carriers for its reduction in emissions from Q-Max/Q-Flex fleet of vessels where significant reductions in emissions are obtained for each molecule of LNG transported when compared to conven-tional LNG vessels. The emission reductions are possible through the introduction of pio-neering onboard boil off gas recovery systems.

We are also currently undertaking the Jetty Boil-Off Gas Recovery Project (JBOG) which will minimize LNG boil-off gas flaring at LNG berths by making productive use of the gas that boils off during loading of LNG carriers at the Ras Laffan Port. This will reduce loading emissions by 90%. Indeed, this project has, in the last few days, been announced as a winning entry in the 2012 Excellence in Flar-ing Reduction GGFR Awards. It will be pre-sented at the World Bank-led Global Forum on Scaling Up Flaring and Gas Utilization for Development Gala Dinner in London at the end of October.

Qatargas 1 operations has also completed a suite of significant NOx reduction projects

with direct benefits to air quality in the region and the new mega-trains have been designed with highly sophisticated NOx mitigation equipment, which easily meet the strict Min-istry of Environment (MoE) NOx emission limits. Furthermore the mega-train design and operating philosophy allows for substan-tial reduction in CO2 emissions per tonne of LNG produced versus conventional LNG train technology.

FR: You are now the leading LNG producing com-pany in the world, if we come back to visit Qatar-gas in 5 years, will you still be a leader? What will the company look like?KHAliD Bin KHAliFA Al-THAni: For Qatargas, our focus now is to be the world’s premier LNG Company by 2015, where we will be known for our people, innovation, operating excellence, environmental responsibility and corporate social citizenship.

We continue to demonstrate our ability as a reliable and safe global supplier of LNG and will add to the energy diversity of countries in Asia, Europe and the Americas. We are com-mitted to helping these countries improve their energy security by diversifying the long-term mix of their energy supplies.

Improving our operations to minimize our environmental footprint remains a top prior-ity. Therefore, we are committed to meet or exceed the most stringent government regula-tory standards and promote environmentally-friendly practices. We believe that sustaining our environment is an obligation we owe to our future generations.

For Qatargas, our focus now is to be the world’s premier LNG Company by 2015, where we will be known for our people, innovation, operating excellence, environmental responsibility and corporate social citizenship.

22Wael Sawan - Executive Vice President Qatar SHELL GTL Ltd

IntervIew wIth:

wael sawan – executive vice president, qatar shell gTl ltd

Wael Sawan Executive Vice President Qatar SHELL GTL Ltd

Focus Reports: With more than $20 billion invested here, what is the significance of Qatar for the Shell Group?WAEl SAWAn: This $20 – 21 billion investment is actually just for Pearl Gas to Liquids (GTL) and Qatargas 4 as we may well invest more on other new projects. The significance of Qatar for us is the evolution from no operations in 2002 to making it one of highest value coun-tries for the Shell group a decade later, with roughly 10% of the overall value for the group. Qatar represents a significant part of our over-all production and a significant part of our reserves and cash flow generation. It also becomes the best demonstration of what Shell can do in partnership with the major resource holder here, QP, and it allowed us to build an integrated gas platform across the entire value chain.

FR: A word about the biggest energy project in Qatar, Pearl GTL; what have been the financial risks and the operational challenges of the project? WAEl SAWAn: From a financial risk perspective, we take on the entire capital investment of this project because of the nature of the pro-duction-sharing contract, where the investor bears the entire responsibility. Of course given that this was going to be the first world scale GTL plant, there is an inherent risk involved. The technology has been evolving over the last 40 years during which we filed up to 3500 pat-ents in all aspects of this technology. We had experienced and harnessed the GTL technol-ogy in our Bintulu project in Malaysia in 1993 but Pearl GTL was a big step forward and

thankfully we have been able to demonstrate the technology performing at its best across the entire plant.

From an operational perspective, we have been very pleased with the progress of the plant ramp-up. The technology is working right, our operators who have been on the plant for an excess of 3 years up to 5 years, prepared meticulously from the early days for the start up. It has been good so far.

FR: What do you think have been the key factors of success and what are the lessons learnt on a project management side? WAEl SAWAn: Undoubtedly, the one thing I would emphasize is absolute focus on people. Our worker welfare program, within Shell and within the region has been world-class, earn-ing us many awards. This is very much built on the notion that if we focus on the welfare of our people and take care of them, then we will see them boost their productivity and deliver the safety and quality performance that we aspire to.

That has been what allowed us to achieve a great record for Shell and Qatar, 77 million hours without a lost time injury (LTI), and that makes us enormously proud as an organiza-tion.

The second key lesson is meticulous prepa-ration ahead of startup; there is pre-invest-ment in the ultimate operation of the plant, bringing operators in, going through system-by-system from all our learning of past proj-ects in Shell. The goal is to know exactly what the potential traps are, overcoming them, mit-igating them, planning for them, and there-

23

fore when you do start up you are in a position to be able to do so with minimal issues.

FR: Qatar Shell established a Research & Technol-ogy Centre at QSTP with a commitment to invest $100 million on research programs over 10 years, can you tell us more about this research center and why did Shell choose to commit so highly to research in Qatar?WAEl SAWAn: We started as the anchor tenant, the first of all companies to open a research center in QSTP.

We did so because of the belief that this was going to be a place that was going to support Qatar in its vision, and support our own activ-ities here in Qatar given the fact that we had Pearl GTL and other activities coming through.

It was an opportunity to enhance our pres-ence and deliver value to the country. We dif-ferentiate ourselves from other research cen-ters because we identify and focus on our key strengths where we will really invest our resources in.

We have a commitment of $100 million to support our research programs; there is a whole range of activities. One that I am par-ticularly proud of is a partnership with QP and Imperial College in the London to spend $70 million, one of the largest R&D efforts between government, academia and corporate in what we call carbonate reservoir research and spe-cifically around carbon capture and sequestra-tion into those reservoirs.

How does Shell’s commitment to the community strengthen the relationship with Qatar?WAEl SAWAn: It is all related to the Qatar National Vision 2030; we began to build our own program on that national vision.

One of the big initiatives we have is road safety. We work very closely with the ministry of interior, we take expertise from other road safety initiatives we have around the world, such as Oman, Malaysia and Brunei, and we have developed something we bring to the table through that experience. We work towards safety along with the Ministry of Inte-

rior; we do some surveys to understand the behaviors of drivers on the road, looking at developing publications, leaflets, information, going out to the media, and trying to work with schools for inclusion in their curricula. .

We have also looked at universities. Last year we started helping Qatari teams join Shell Eco-marathon, which is a global activity that Shell sponsors with 3 races each year in the Americas, Europe and Asia.

There is quite a raft of initiatives and we feel that we have a significant responsibility in that area given that we are the largest foreign inves-tor but also because we have some specific capabilities that we can bring to the table.

On Qatarization, we have taken it very seri-ously since the first day we came into Qatar and that is something we are proud of. We have 250 Qataris in the organization today, and we are proud of the fact that we were the only IOC to have won his Excellency The Minister of Energy and Industry’s annual Qatarization award 3 years in a row.

FR: Where do you see Shell Qatar in the next 3 to 4 years? WAEl SAWAn: In the exploration sector, Qatar has opened the Pre-Khuff horizons, and Shell has been lucky along with our partner CNPC to be awarded block D on that project. In pet-rochemicals: we have been awarded the first Greenfield petrochemical project that has come up, so we will be part of that growth area as well, and the third element of it is QPI, which purchased some Shell assets in Singapore in 2009. We are also involved in a refinery, pet-rochemical and retail station in China; it is a multibillion dollar development, which we will progress together with QPI and CNPC, so that is the growth agenda.

I would like to recognize the role that Qatar has played in these achievements, in that it is one of the unique locations in the world where the government and the oil and gas sector really value what the IOCs bring.

24Adel Ahmed Albuainain - General Manager Dolphin Energy Qatar

IntervIew wIth:

adel ahmed albuainain – general manager, dolphin energy qatar

Adel Ahmed Albuainain General Manager DOLPHIN ENERGY Qatar

Focus Reports: The Dolphin Gas Project is now complete. What have been the most significant milestones and achievements?ADEl AHMED AlBuAinAin: Dolphin Energy first delivered gas in 2007, marking the arrival of Qatari gas to the UAE. This was followed by two major events in 2008 when the company achieved full throughput of 2 billion stan-dard cubic feet of natural gas per day and first supplies reaching Oman in October of the same year.

The main activities at that time were focused on shifting from project mode to being operational; as we needed to optimize and make sure that we had sustainable pro-duction. Ensuring we met customer require-ments was also a priority as gas demand is really high in the UAE and Oman. Dolphin Energy gas accounts for 30% of the UAE’s energy requirements, helping fuel economic growth and diversification and supporting the requirements associated with population growth.

Since operations began, Dolphin Energy has supplied more than 3 trillion standard cubic feet and a unique facet of the project is that Dolphin Energy is involved in the three stages of the value chain - upstream, mid-stream and downstream.

It is rare to find this level of involvement in the value chain in the oil and gas sector.

Another important achievement is in the area of Qatarization. Dolphin Energy is actively recruiting Qatari Nationals - cur-rently, 33% of the workforce is Qatari. Around 50% of the senior management team is Qatari, which is an excellent achievement. In May 2012, we received the Certification of Appreciation at the 12th Qatarization

Forum: an annual event chaired by H. E. Mohamed Saleh Al Sadah, Minister of Energy & Industry and Chairman of Qatar Petro-leum Company.

FR: How is Dolphin Energy a ref lection of regional energy cooperation? ADEl AHMED AlBuAinAin: The Dolphin Gas Proj-ect is the first of its kind for this region. It is a symbol of regional energy cooperation and a 21st century vision of international trade. It is the only energy initiative to link three countries and illustrates the support of the governments of Qatar, the UAE and Oman and the unerring commitment to ensure the project’s success.

To this day, the input and support of our shareholders, Mubadala Development Com-pany, Total and Oxy, and our strategic part-ner, Qatar Petroleum, can be seen in our senior management structure and the num-ber of secondees placed in the company.

The Dolphin Gas Project sends a clear mes-sage about the benefits of energy cooperation for the wider region and is a shining example of what can be achieved.

It is also about bringing people together and opening up opportunities for the citizens of the three countries: we have Emiratis working in Qatar, Qataris working in UAE; we travel a lot between Abu Dhabi and Doha.

FR: When the Dolphin Gas Project was designed, the pipeline route was plotted to preserve impor-tant marine habitats and corals. What were the main obstacles in terms of developing the project while preserving the environment? ADEl AHMED AlBuAinAin: We have made a major contribution to the protection of the environ-

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ment. Our commitment started at the design phase and we needed to ensure that whatever we decided to enact from production to dis-tribution, the value chain was safe and envi-ronmentally friendly.

One of Dolphin Energy’s earliest decisions was to rank QHSE (quality, health, safety and environment) excellence with other primary business objectives. This set the tone for the company’s development in its project phase and received endorsements from our share-holders and the surrounding communities.

So, from these early beginnings, Dolphin Energy was committed to business processes that focused on efficiency, investment in peo-ple, correct ethical conduct, social responsi-bility, profit and growth.

Dolphin Energy support many environ-mental programs and take important steps to ensure the production and processing of natural gas has minimal environmental impacts - from plotting a subsea pipeline route that avoided important turtle breeding grounds and protected marine habitats to initiating a flare reduction program to help reduce emissions.

The company also took steps to partner with government institutions and leading organizations in the field of protection and conservation. This has seen the implementa-tion of many initiatives such as the Coral Project and Beati Watani, an online environ-mental education program.

FR: This is a project that has a strong number of initiatives to support the population. Can you tell us more about the most significant commu-nity support initiatives you are undertaking?ADEl AHMED AlBuAinAin: We have joined forces with other companies in Ras Laffan and have created a “Community Outreach Program”. We are members along with Rasgas, Qatar-gas, Oryx and Qatar Petroleum. We are involved in this because our operations are in Ras Laffan and there are communities liv-ing nearby such as in Al Khor that need our support.

These communities are concerned about the impact the companies operations will have on their lives. So we conduct a lot of education in that regard, we host training workshops and talk to the communities to understand what their needs are and outline the opportunities on offer to them. We encourage them to work with us because there are many benefits to living close to where you work.

In addition to participating in the Com-munity Outreach Program, we also run a number of initiatives that touch upon culture and the arts, education, sport and charity.

We have a strong link with Qatar Univer-sity and have formed a strategic partnership with them. We support all their initiatives and opportunities and are attracting more graduates to the company as a result.

We also have a program with Texas A&M, which is more focused on engineering.

Our role is to support not only higher edu-cation but also schools. We hold sessions to explain our project so that we can attract Nationals.

That has had a positive effect because we now have employees who were keen to join Dolphin Energy since they were in High School. We also have some situations where some employees decided to leave Dolphin Energy but then want to come back two months later!

FR: What are Dolphin Energy s most significant goals for the future ?ADEl AHMED AlBuAinAin: Our focus is on ensur-ing we send natural gas to our customers in UAE and Oman without interruption and in full observance of our obligations to mini-mize any environmental impact.

We are also keen to build on our ability to attract and retain talent, focusing on the need to keep our employees motivated so that they build successful careers in the long term.

26 Interview with: Bart Cahir President and General Manager, ExxonMobil Qatar

IntervIew wIth:

bart cahir – president and general manager, exxonmobil qatar

Bart Cahir President and General Manager, ExxonMobil Qatar

Focus Reports: Can you give our readers a his-torical overview of ExxonMobil since its estab-lishment in Qatar?BART CAHiR: ExxonMobil’s partnership with Qatar Petroleum (QP) and the State of Qatar is in many ways a historic partnership. We have participated in 12 of 14 LNG trains, and we are the only international oil com-pany that participates in the domestic gas business, through Al Khaleej Gas and the Barzan Gas project, which is forthcoming. These are very important set of assets for both ExxonMobil and for QP.

It started with the vision of His Highness the Emir, and was also underpinned by strong governance in the State of Qatar. One of the great success stories about Qatar that needs to be told is the transparency in the industry – the business ethic that they have been able to drive through the oil and gas sector.

Secondly, as ExxonMobil and QP began to carry out these developments together, it was really a partnership grounded in tech-nology. The North Field was, in many ways, viewed as a stranded gas resource because it was too far from the traditional LNG buy-ers. We needed technology that could bring the costs of supply down and make it viable to get to those markets.

77 million tons are sufficient to power 70 million homes annually. When thinking about the role energy plays in creating eco-nomic prosperity and lifting people out of poverty, the historic nature of ExxonMo-bil’s relationship with QP is that it has been an enabler, not only for prosperity here but

also in places like India that had previously not been an LNG buyer but has grown to be one of Qatar’s biggest buyers.

In many ways, the globalizing of the LNG business is due to the vision of His Highness the Emir and underpinned by the partner-ship that ExxonMobil and QP have formed.

FR: As Australia and the United States are becoming significant players in the gas market, what is your insight on Qatar’s place in this global context?BART CAHiR: There are going to be more global players in the LNG business, and I think if you take the long view of the LNG business, then that’s healthy. I think it creates a greater acceptance of gas as a fuel. Ulti-mately, as populations grow they will need more energy to power their economy. And we know that populations are going to con-tinue to grow and that diversity of supply,

One of the great success stories about Qatar that needs to be told is the transparency in the industry – the business ethic that they have been able to drive through the oil and gas sector.

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and having reliable input from multiple locations only makes gas more attractive as a fuel.

If you couple that with Qatar’s reputation for reliability, and being a good supplier, there is going to be plenty of room for Qatar LNG in that sphere because more and more people are going to want gas. So in the long term, I think it is healthy for Qatar.

FR: What are the main projects and activities that are on your core agenda today for Exxon-Mobil Qatar?BART CAHiR: We have gone through a pretty rapid expansion in the LNG business over the past few years. The focus today is on ensuring that we have the right operational and human resource development processes in place to ensure safety and reliability.

In the domestic gas business, we are of course focused on these things, while also still under an expansion phase. Qatar’s economy is continuing to grow and signifi-cant infrastructure investments are being made.

The Barzan Gas project is the next step for us. We expect to bring the first train on in 2014 with the second train in 2015, cumulatively that will provide another 1.4 billion cubic feet a day of natural gas into the domestic market. Domestic gas is impor-tant for the large amount of infrastructure build-out that is ongoing, including rail projects, additional hospitals, and all related activity in the run-up to the 2022 World Cup. All these projects are going to require a reliable supply of energy and we are pleased to be a part of that.

FR: What are the main initiatives towards research in Qatar, especially through the com-mitment of ExxonMobil at Qatar Science and Technology Park?BART CAHiR: ExxonMobil Research Qatar (EMRQ) is our entity that operates at Qatar Science and Technology Park.

EMRQ is focused on a range of research

projects. Technology always underpins what we do, and we have focused our research at QSTP on a couple of areas that we think are important in Qatar.

One of these programs is on water reuse. Water resources are pretty scarce in this part of the world, so we are working hard to find ways to take some of the industrial effluent and put it to good use in a clean, safe, and environmental friendly manner. We’re undertaking significant research into ways that you can bio-remediate the water and ultimately use it in a productive capac-ity.

Another area of focus in our research is safety in our gas and LNG processing oper-ations. We have undertaken significant efforts focused on LNG safety in two areas. One area involves the design and installa-tion of a 3-dimensional virtual training simulator, where you essentially construct an entire plant environment and bring peo-ple in to train them. It gets back to the Human Resource challenge - how do we build more competencies in people onsite.

FR: Where do you pinpoint the future opportu-nities of the energy industry in Qatar in the next years to come?BART CAHiR: Within the portfolio of the LNG business, there are still opportunities to optimize the existing infrastructure. We want to make sure that the trains are per-forming with maximum efficiency. For example, we want to be able to produce the 77 million tonnes as an industry from as little inlet gas as possible. Efficiency is very important, and can be achieved in a variety of ways. That is the opportunity for today.

If we look on the longer term, I think the State of Qatar has managed its resources effectively and efficiently. If a time comes that they decide to lift the moratorium, hopefully we will be a part of that, but today we are quite happy with the business that we have and ensuring that business gets to its full potential

28 Florence Verzelen, General Manager, GDF SUEZ QATAR

IntervIew wIth:

florence verzelen – general manager, gdf suez qatar

Florence Verzelen, general Manager, gdf sueZ Qatar

Focus Reports: How significant is Qatar among the global GDF SUEZ group ?FloREnCE VERzElEn: GDF SUEZ activities in the country target electricity, gas, energy services and environment. GDF SUEZ is for instance Qatar’s largest Independent Water & Power Producer, with its 40% share in Ras Laffan B and its 20% stake in Ras Laf-fan C (Ras Girtas). The Group is now work-ing on the latter’s extension. In the gas sec-tor, GDF SUEZ, as one of the country’s 9 operators, is currently preparing the explo-ration campaign of Block 4, located in the northern sector offshore Qatar. GDF SUEZ will be the first operator to drill the Pre-Khuff formation, which represents a prom-ising target for Qatar. The drilling period should start at the end of 2012 and lasts for one year. In environment, GDF SUEZ is operating 3 wastewater treatment plants, respectively located in Barwa City, Doha West and Lusail.

Qatar’s economic potential, as well as its huge amount of incoming infrastructure investments, constitutes a strategic oppor-tunity for GDF SUEZ. The country has the world’s fastest economic growth, with 19% in 2011. 2012 forecasts follow this trend. Similarly, it will invest around 150 billion USD to host the FIFA World Cup in 2022 and a similar amount to implement its National Vision 2030.

GDF SUEZ is ready to use its expertise to serve Qatar’s sustainable growth. Thanks to its presence on both the energy & envi-ronment value chain, the Group can provide innovative solutions in various sectors, such as power & water production, water

desalination, water & waste treatment, renewable energy and energy efficiency. GDF SUEZ is willing to develop its busi-nesses in Qatar on the long term view.

FR: What are the main challenges in meeting the increasing demand of water and energy in Qatar? FloREnCE VERzElEn: Water scarcity is Qatar’s major issue. For the time being, the country only has two days of water reserves. The government forecasts water shortage by 2014 and need to double its supply to meet the increasing demand, which is estimated by Kahramaa at 100 million gallons/day by 2016. The country will increase the capacity of its existing IWPPs to meet this demand. For the time being, Qatar has four major

Water scarcity is Qatar’s major issue. For the time being, the country only has two days of water reserves. The government forecasts water shortage by 2014 and need to double its supply to meet the increasing demand.

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power plants which secure an adequate power supply within the country. Qatar has the second highest consumption rate in the region, which is likely to increase due to the infrastructure development plans related to World Cup 2022.

We are working towards more water reserves with Ras Laffan C, which is Qatar’s largest IWPP. It has a production capacity of 2.730 MW of power and 286 000 m3 of desalinated water. This project, of which construction work has lasted for three years, is a major success for the Group. The opportunity of its extension, ordered by Kahramaa, is a new challenge for GDF SUEZ, and one that the Group is keen to achieve.

FR: How would you assess your competitive advantage, given the fact that GDF SUEZ was appointed as the preferred bidder and partner of choice for huge projects such as Ras Laffan C ? FloREnCE VERzElEn: As the world’s first util-ity provider, GDF SUEZ has been able to build significant experience as well as a strong reputation over the years. The Group’s market knowledge and its ability to bid on time and without incidents were key elements to become a reliable partner of Qatari authorities.

GDF SUEZ is also the first independent power producer within the region, which can also explain why it has been appointed as a preferred bidder.

In addition, GDF SUEZ has built good relations with Qatar Petroleum and Qatar Electricity and Water Company. The Group is able to understand their needs and to meet them with tailored solutions.

To strengthen these relations, GDF SUEZ and QP have signed a Memorandum of Understanding to explore project oppor-tunities outside Qatar. The Group is willing to sign a similar partnership with QEWC.

FR: Qatar has the fastest growth in the world, therefore demanding a lot of energy for its rap-

idly changing infrastructures. What will be the biggest obstacles that the country might face in the near future?FloREnCE VERzElEn: Energy efficiency is undoubtedly Qatar’s major issue. Signifi-cant improvement in the construction sec-tor for example will be necessary to reach the government’s goal of a sustainable growth, as written in the National Vision 2030 or the goal of zero carbon emission set for the World Cup.

Qatar has the second highest power con-sumption rate in the region. This is mainly due to cheap electricity. Therefore, reducing the consumption will require strong politi-cal will and awareness campaigns to change local habits, especially towards young pub-lic.

However, with 1/3 of the world’s gas reserves and major incoming events such as the FIFA World Cup 2022, Qatar repre-sents a country of opportunities. Lots of projects will be developed here and will require expertise and competencies in var-ious fields. In this regard, if a company would like to expand its activities abroad, Qatar should definitely be on their radar.

As the world’s first utility provider, GDF SUEZ has been able to build significant experience as well as a strong reputation over the years. The Group’s market knowledge and its ability to bid on time and without incidents were key elements to become a reliable partner of Qatari authorities.

30Lewis Affleck Managing Director Maersk Oil Qatar

IntervIew wIth:

lewis affleck - managing director, maersk oil qatar

lewis Affleck Managing Director Maersk Oil Qatar

Focus Reports: What where the main milestones and achievements since Maersk Oil settled in Qatar? lEWiS AFFlECK: It is a good time for you to visit as we are getting very close to Maersk 20th anniversary of being in Qatar, on the 22 June 2012.

How it started is quite simple: we took a field in 1992 that others thought was uneco-nomic, and that was not particularly produc-tive. Today, after 20 years we have produced around 1.2 billion barrels of oil from that field, whereas others thought it was not economi-cally viable. We have come to produce 300,000 barrels of oil per day so it is quite a massive achievement for us, as it is the largest oil-pro-ducing field offshore Qatar.

Maersk Oil took over the operations of the Al-Shaheen field in 1992 when very few com-panies believed in its economical viability. Maersk has been visionary and has succeeded in operating this huge project, which now accounts for around one third of Qatar’s oil production.

FR: What were the main challenges that you had to overcome and what were your key factors of suc-cess?It is a carbonate reservoir and its particularity is that the reservoir is very thin but extends over a large area. Many companies thought it was not producible.

What Maersk did is that we brought tech-nology that we used in the North Sea where we drill extensive horizontal wells, to have a much larger exposure to the reservoir. We brought in that technology and it has been very successful.

In addition to that we are running a recov-ery technique called waterflooding; we are

injecting water into the reservoir to help flush the oil out and enhance the recovery.

We have one of the largest offshore water-floods operations in the world. In total we have drilled 300 wells, including 169 wells in our last development program, which we just com-pleted.

Maersk Oil holds more than 35 oilfield technology patents, and is establishing the Maersk Oil Research and Technology Centre (MO-RTC) at Qatar Science & Technology Park (QSTP).

FR: How significant is R&D for Maersk and how does it account in your unique technological lead?lEWiS AFFlECK: We believe we are a technical-led company. If you look at the overall vision we have, “navigating complexity, unlocking potential”: we actually unlock it through tech-nological solutions in complex reservoirs.

We have done it in Denmark and we have done it here in Qatar, as well as in other coun-tries, making us experts on this niche. We are only upstream, unlike other companies. We partner with the NOC’s like QP here to unlock the potential of these fields.

About R&D, Maersk Oil Research and Tech-nology Center is our only Research Center in the world, so it is THE Research Center, it is not something we are just doing because Qatar would like us to do it. It is something very important to us.

We have committed to spend 100 million dollars over a 10-year period and we inaugu-rated it last year. We have got some very good projects going on, which have been very well received.

When you go into such a field, the first stage is primary production, where you drill the wells, you get the oil recovery that natural

31

energy will produce, you then go into second recovery which is waterflood by swiping more oil to the wells and you finally go to enhanced recovery which makes the oil in place more mobile.

We are currently running a pilot which will be starting next month on the enhanced oil recovery, it is called a WAG: water-alternating-gas injection. We believe that there is tremen-dous potential.

Maersk Oil is a company that sets Safety as one of the most important value: we know that everyday Maersk Oil Qatar is performing quite challenging tasks where safety is key. The CEO Jakob Thomasen visited Qatar in February to see how « incident-free » is being implemented in Qatar and he set safety as the main priority for 2012.

FR: Maersk is involved in a project on gas recovery with QP that was approved by the United Nations in 2007 as a Clean Development Mechanism (CDM) under the Kyoto Protocol, which will aim at reducing CO2 emissions in Qatar by 17.5 mil-lion tones over 7 years. As a company deeply involved in environmental concerns, what strate-gic role is Maersk willing to play in the green growth trend that is currently taking place in Qatar? lEWiS AFFlECK: The project you mentioned is a fantastic project. In many of the areas of the Middle East, flaring is done extensively to cre-ate production, and what we can see now in Al-Shaheen is that we have reduced production flaring to an absolute minimum. It is an amaz-ing achievement when you consider that we produce 300,000 barrels of oil a day.

Together, Qatar Petroleum (QP) and Maersk Oil have successfully reduced gas flaring from the Al-Shaheen field to an absolute minimum - a rare accomplishment in the industry. A 90% reduction (2007 - 2011) in greenhouse gas emissions has been achieved by capturing pre-viously flared gas and turning it into clean electricity, thereby increasing the national electricity supply, providing employment and transferring technical knowledge to local

industry. As a result of its approach to envi-ronmental management, the project’s gas gathering system was recognised as the world’s largest Clean Development Mechanism (CDM) project by the UNFCC, as part of the Kyoto Protocol.

FR: Where do you see Maersk Oil in the next 2 to 3 years?lEWiS AFFlECK: The great thing about this field, although we have already produced around 1.2 billion barrels and drilled 300 wells, spent over 8 billion dollars developing it; is that today there is still enormous potential.

Within the next month we expect to get the next stage of development approved, which will be another 50 well development. We believe that this is a field that will still be producing in 70 to 80 years time.

We are looking forward to making further technical achievements and improving recov-ery.

The focus at this moment is maintaining the plateau, 300,000 barrels a day for a long period of time. The work that we have done has identified a number of projects which would allow us to do this for many years ahead.

We truly think there is enormous future yet to be unlocked with this reservoir alone.

I have worked in many areas of the world, and I can say that Qatar is an excellent place to do business. The Qataris have an encourag-ing environment, and this is why we are com-mitted to the long time.

I have worked in many areas of the world, and I can say that Qatar is an excellent place to do business. The Qataris have an encouraging environment, and this is why we are committed to the long time.

32 Paul Navratil Energy, Utilities and Mining Leader, Peter Gordon, Senior Manager PwC Middle East

IntervIew wIth:

paul navratil energy – utilities and mining leader, peter gordon – senior manager, pwc middle east

Paul Navratil ENERGY, utilities and Mining leader, PwC Middle east

Focus Reports: What is PwC’s history in Qatar?PAul nAVRATil, PETER GoRDon: PwC has been in Qatar since 1982, providing a wide range of services stretching from assurance, tax, finan-cial advisory and management consulting ser-vices. Within those different lines of services we bring deep functional and industry -rele-vant experience to our entire client base. PwC Middle East covers a wide territory, from Libya to Oman, present in every country with the exception of Iran and Yemen. PwC is the number one professional services firm in many of those markets, and has the clear ambition to be so in all the territories we are in.

That is really the part we like to speak of as a differentiator, because we are doing some-thing fundamentally different than the rest of the professional services firms, by focusing very much on the operations & revenue sides of the business. In particular, the National Oil Companies in the region have a tremendous challenge. Given the new fields that they will have to develop, new technologies they will have to deploy, the workforce gaps which will need to be overcome, and the responsibility that they have towards the state, NOCs are now required to be world-class operators, not the old-style administrators.

So our very simple tactic is to focus on helping those companies and their venture partners to achieve world-class operations here in the region.

When you look at the various projects that we are doing here in Qatar, as well as across the Middle East region, they are very much focused on helping our energy companies to

improve their core operational processes: from exploration to production, production efficiency, well delivery, supply chain manage-ment & logistics, refining efficiency, and mar-keting. Additionally, we have assisted several of our key clients on to how to most effectively deliver their new mega projects, focusing on the management of risk, people, discipline interdependencies, and bringing these capital projects in on time and on budget. All those factors have material impact on the way that the company is able to generate efficient and productive revenue. These should be the goals of most in this industry, especially the national oil companies, given that they are the main contributors to the state economy,

FR: What are the main challenges of Qatar’s strat-egy between maintaining its leading position in the Oil and Gas industry versus high efforts to diversify its economy?PAul nAVRATil, PETER GoRDon: Having a quali-fied, motivated, high performing workforce is perhaps this industry’s biggest challenge. That is a regional problem, which Qatar is experiencing the full brunt of, given the scar-city of national resource.

To address that human capital gap, one of the initiatives that we run at PwC is an inten-sive management development program that is aimed at high potential Qataris working in the oil & gas sector. It is a 5 week program, which is run in it conjunction with the QFBA, with its overall aim to bring high potential Qataris to a level that would truly add value to their businesses. It involves a mix of class-room based learning, case studies, and site

Peter Gordon, Senior Manager, PwC Middle eaSt

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field trips where participants can witness the “industry at work”.

FR: What is your insight on Qatarization among the different targets of Qatar Vision 2030? Do you think the target to reach 50% of Qatari work-force in the energy sector is feasible? PAul nAVRATil, PETER GoRDon: It is a challenge in the energy sector because attracting people to jobs in this intensive industry with this very small workforce is difficult.

The value proposition is not very well artic-ulated to Qataris and it could be made better in order to attract more into the industry. Energy companies have struggled to go fur-ther to development, motivation, empower-ment etc. The approach to such areas clearly needs to be thought of in a different way.

Because of the lack of Qatari skills, the international oil companies (IOCs) know that Qatar needs to form partnerships, and so they come into the game with a more open mind in forming such joint ventures and partner-ships. The deal terms entered into in Qatar are typically much better than what the IOCs get in Iraq, Saudi, and UAE etc. It goes both ways, it has created an environment where they have been able to excel because they have thought of partnerships in a constructive way. In this regard, Qatar has been extremely suc-cessful. You see a number of countries region-ally struggling to get joint ventures and last-ing relationships because there always is a tension around the motivation of the various parties involved, whereas in Qatar the clear dependency is there. So we acknowledge that dependency and use it to everyone’s advan-tage.

FR: Qatar Petroleum International has estab-lished some partnerships with Total in Maurita-nia, with Shell in Singapore, how do you feel this internationalization process of QPI will move for-ward? PAul nAVRATil, PETER GoRDon: QPI needs to find its space, and be clear about the reason they are going international. It would allow them

to establish a larger strategy, which is not properly articulated yet.

QPI is not going to be a material E&P player globally. And why would they want to become so anyway? They could become the natural downstream outlet for a lot of export Qatar production. But internationalization of national oil companies should be done for some very precise goals: the first one should be to source technology, gain international experience in technology and find out how it could be used back home to develop & produce the next frontier of hydrocarbons. The second goal would be for Qataris to be able to go into international ventures so that they can learn about effective operations, new fields, and new applications of technology, and bring that knowledge & experience back home. Achiev-ing such objectives would constitute success and would certainly bring added value to the core business in Qatar.

FR: How do you foresee the role of the oil and gas industry for Qatar in the next years to come?PAul nAVRATil, PETER GoRDon: In the Gulf, eco-nomic growth & change have always come from the oil and gas industry. The oil and gas industry is the incubator, not only of the oil and gas economy but also of the national knowledge economy. It is in helping the energy industry truly deliver its maximum potential value to the nation where PwC & Qatar can work together to achieve success.

In the Gulf, economic growth & change have always come from the oil and gas industry. The oil and gas industry is the incubator, not only of the oil and gas economy but also of the national knowledge economy.

34M. Finbarr Sexton Partner – Ernst & Young Qatar

IntervIew wIth:

m. finbarr sexton – partner, ernst & young qatar

M. Finbarr Sexton Partner – Ernst & Young Qatar

Focus Reports: What brought Ernst & Young in Qatar in the first place? M. FinBARR SExTon: Ernst & Young was actu-ally the first amongst the big four firms to set up operations in Qatar. We arrived in the 1950s; effectively at that point of time in Qatar there were no other of the big four firms active in the country. In 1952, the backbone of our clientele was BP and Shell in terms of the developments in which they were involved in the Dukhan field. Indeed, the backbone has always been the oil & gas industry. Ernst & Young has grown in Qatar from then on to a fairly sizeable com-pany. Obviously, we have emerged as a very important player in the Middle East region. Today, we have about 350 staff in Qatar alone, and quite a lot of those are serving the oil and gas industry in one role or another. We have a long-standing relation-ship with most of the oil and gas compa-nies, the IOCs that have come here to set up.

FR: Asia is the main destination for the export of LNG. How would you assess the importance of Qatar’s multilateral relations with Asian economies, notably with Japan, South Korea and India? M. FinBARR SExTon: Japan does not plan things one year ahead. Japan tends to plan 10 to 20 years ahead. Asia as a whole has always been looking for reliable suppliers that could actually supply markets not for a five-year period but rather a 25-year period and even beyond that. With Qatar’s oil and gas reserves and the reserves that are contained in the North field, Japan for

instance identified very early on, back in the early 90s, the potential that Qatar had and still has in being a very reliable sup-plier. At that point of time, it was easy to conclude 25-year contracts, knowing that it is not going to be a 25-year relationship, but it could easily be extended to a 200-year relationship. The reliability and the security of supply were amongst the key attractions that Qatar held - and still holds - in the eyes of Japan and South Korea. Qatar actually holds a unique geographical position, being able to supply Asian as well as European markets. It can easily divert its exports to different countries depend-ing on market demands. But certainly Qatar and Japan have a very strong trading relationship. On the one hand, Qatar is selling gas to Asian markets; on the other hand, Qatar is buying engineering and EPC expertise from those markets. This is a strong and healthy relationship.

FR: What is your view concerning the impact that the Eurozone crisis and the regional polit-ical instability related to the Arab spring may have had on the global LNG market and how can Ernst & Young be an advisory to compa-nies that feel the repercussions in relation to those events? M. FinBARR SExTon: The Eurozone crisis has obviously dampened the economies of most developed countries and consequently less performing economies. Industrial produc-tion is going down. Oil and gas are essen-tial elements in driving industries. So, if demand is down, it obviously impacts on the ability of suppliers to supply to those

35

markets. The crude oil market and the gas market are going through interesting times at present. Prices continue to be high, even though they are dropping at the moment. From a Qatar perspective, the Eurozone crisis is unfavorable and the uncertainty in the region as a whole is a cause for seri-ous concerns.

FR: What would be the main obstacles to Qatar’s global leadership in the gas industry?M. FinBARR SExTon: Australia probably rep-resents the biggest threat to the Qatari LNG industry, being much closer to the Far East markets than Qatar. So there are inherent challenges with Australia bring-ing on supply. The US is also likely to become a gas exporter with very substan-tial quantities in the future. It is therefore likely that prices will come under a lot more pressure in due course. These will be the main issues for Middle East suppliers. Demand may fall and prices may come under severe pressure because of cheaper supplies coming from other producers.

Qatar is a market that went through rapid development over the last 15 years. There were a lot of opportunities in terms of project works. The facilities were being built, so we did a lot of work with doing cost reviews on the EPC projects, helping with internal audits, processes of the various companies. This market has now changed from a project market to operation and maintenance. What most companies are trying to achieve now is to reach efficiency in terms of their operational and mainte-nance costs. We see a lot of facility main-tenance companies coming in. QP and the LNG projects are outsourcing their O&M functions to the facility maintenance com-panies. But how much can you afford to outsource, how much can one afford to let go? You may lose your expertise; you may lose your maintenance history of assets. We assess this as a risk they are taking. Obviously, it is very cost-effective. But in

the long run, you have to answer those questions. Should you need at some stage to bring in internally the maintenance, you may have difficulties doing it yourself. So, that is one of the risks that we see.

FR: Qatar is the new Promised Land and inves-tors tend to be very attracted to settle down in the country. How do you guide them through this challenging market? M. FinBARR SExTon: Entering this market may be difficult, a contractor or an IOC cannot expect to win a project within just one year. You have to develop relationships and trust with the NOC. Relationships are very important for both contractors and IOCs. You need to come here, set up a rep-resentative office, spend some money and put good relationships people on the ground. And after two to three years, you may see the benefits. It is definitely a three-to-five-year strategy.

We frequently see new companies com-ing in. We provide them with market intel-ligence. We advise them in terms of who are reliable partners. We help them identify where the opportunities exist. We place a lot of emphasis on attracting people to Qatar to look at the market. We are very active in organizing special receptions and events. Every company that comes to our doorstep is a potential client, so we invest in that relationship.

Relationships are very important for both contractors and IOCs. You need to come here, set up a representative office, spend some money and put good relationships people on the ground.

36Dr. Mazen O. Hasna - Dean College of Engineering at Qatar University

IntervIew wIth:

dr. mazen o. hasna – dean, college of engineering at qatar university

Dr. Mazen o. Hasna Dean College of Engineering at Qatar University

Focus Reports: What was the vision behind the creation of the college of engineering back in 1980?DR. MAzEn o. HASnA: Qatar is a country with an economy that is mainly based on hydro-carbon. Engineers are known to be the main players in this industry. It was very natural that a college of engineering should exist and that engineering education should start in Qatar. The main vision in establishing the college was to support the economy and main industry in Qatar.

FR: What is the portfolio of academic programs that you have at the college of engineering, and tell us how significant is the college of engineer-ing among the Qatar University?DR. MAzEn o. HASnA: It started in 1980 with 4 programs, available only to male students -- electrical engineering, mechanical engi-neering, civil engineering and chemical engineering. In 2003 it was opened to female students to pursue programs in sys-tems engineering and computer engineer-ing. Today we offer eight undergraduate pro-grams, seven Master’s and twelve. In terms of numbers, the college of engineering is ranked either 2nd or 3rd among the whole university, with the College of Arts & Sci-ences having the largest student population; in terms of visibility, research, funding, attraction, we are extremely strong and leading within QU.

FR: The main current issue in the industry is the shortage of skilled people in the petroleum field. How is Qatar University willing to address this issue in terms of training and how are you rais-

ing leadership among future Qatari engineers?DR. MAzEn o. HASnA: The College has for many years placed outreach to high school stu-dents as one of its top priorities. Through several initiatives, we have raised interest in the science and engineering field among high school students in Qatar. Our Life is Engineering Program (LIEP) is one such ini-tiative that makes science and engineering more interesting to Qatari youth and encourages their awareness of their role in contributing to the country’s development. We partner with leading industrial compa-nies in Qatar for their input and expertise to pass on to the students and provide hands-on experience to build their skills. Internships and on-site training is a very important part of our programs - not only do the students learn more about the area of the industry where they are interning but they also learn other important life and work skills such as leadership, organization, interpersonal communication, networking, and teamwork.

We are not only growing skilled engi-neers but responsible and resourceful indi-viduals who will lead Qatar’s future. Our intake has increased as a result of the pro-grams we have been running. I can claim that we were successful in raising the num-ber of students enrolled in our engineering programs over the past few years. Engineer-ing is often viewed as a challenging disci-pline -- students tend to lean more towards business and arts disciplines.

FR: How significant is research among Qatar University and how are you willing to contrib-

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ute to the development of the oil and gas sector in the country through the research aspect?DR. MAzEn o. HASnA: Research is hugely impor-tant to the academic environment of the col-lege which is in line with the objectives of the overall QU Strategic Plan. The College is committed to developing a strong research culture. We ensure that our programs engender research that seeks solutions to the needs and concerns of the wider com-munity. This is very important because we are aware of our role in contributing to the social and economic development of Qatar.

Our commitment is further reflected in the successes we have enjoyed in award grants from Qatar University and Qatar National Research Fund, and the oil and gas industry for our research initiatives. Cur-rently we are managing more than 100 mil-lion dollars for QNRF-awarded projects. Based on our current capacity and the needs of the country, there are two areas that we identified in terms of growth and potential: renewable energy, and alternative sources of energy. At the college, we set up a lab for renewable energies because we saw that it is an area of high potential in Qatar and worldwide.

Today, we house Chairs sponsored by QP, Rasgas, Qatar Gas, Maersk Oil, Oryx GTL, and Kahramaa-Siemens. This has been a very good scheme and we expect to add more Chairs to our portfolio in the near future.

For the long-term, we will review our programs and hone our research targets to ref lect those expressed in the national vision 2030. We are seeing a number of areas such as the fertilizer and petrochem-ical industry where research and knowledge can be created and we can contribute to this.

FR: What would you define as the college of engi-neering strengths? Your main competitor is Texas A&M : do you compete or complete each other? DR. MAzEn o. HASnA: Our strength is that we

are part of the country’s first and only national university and stand at the heart of the country’s national identity. We are the main providers of engineers to the Qatar labor market. Our graduates are sought-after by the leading companies in Qatar and some are returning to the college as faculty to reenergise its culture of quality and excellence. We do not view Texas A&M as a competitor; collaboration is important to us as it is added value to what we do. We have several collaborative research and aca-demic projects with Texas A&M and envis-age that we will continue these collabora-tions.

We are very confident that we are doing well from an academic point of view. We are also very proud of the international accred-itation awarded the college by ABET

FR: What is your assessment for the future of education in Qatar?DR. MAzEn o. HASnA: We are guided by the University’s Strategic Plan which is aligned to the National Vision 2030 and the National Development Strategy 2011-2016. The coun-try’s development continues on a fast track and the World Cup 2022 is also driving the momentum. As the college of the first and only national university, we will continue to be among the leading contributors and participants to where the country is head-ing.

Our strength is that we are part of the country’s first and only national university and stand at the heart of the country’s national identity. We are the main providers of engineers to the Qatar labor market.

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PAst rePOrts

http://issuu.com/focusreports/docs/south_afirica_oil_gas_report_august_2012

http://issuu.com/focusreports/docs/china_oil_gas_report_july_2012

http://issuu.com/focusreports/docs/russia_oil_gas_report_march_2012

http://issuu.com/focusreports/docs/mexico_ogfj_2012

http://issuu.com/focusreports/docs/india_new_

http://issuu.com/focusreports/docs/oil_gas_peru_2011

http://issuu.com/focusreports/docs/oil_gas_australia_2011

http://issuu.com/focusreports/docs/oil_gas_singapore_2010

http://issuu.com/focusreports/docs/indonesia_oil___gas_report_october_2012/1

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Company index

Chevron: ............................... 10, 11, 14

Chubu Electric Power: .....................11

Dolphin: ..........................12, 14, 24, 25

Ernst & Young: ............................11, 34

ExxonMobil: ........................... 7, 26, 27

GDF: ......................................14, 28, 29

Kahraama: ................12, 14, 28, 29, 37

Minister of Energy and Industry: ........................................... 6, 16, 17, 24

ORYX GTL: .......................8, 18, 25, 37

PwC: ................................. 7, 14, 32, 33

QAFCO: ................................ 10, 16, 17

Qatar Petroleum:

............6, 7, 8, 16, 19, 24, 26, 29, 31, 33

Qatar University:............14, 25, 36, 37

Qatargas: ...........6, 7, 11, 20, 21, 22, 25

RasGas: ................................... 7, 25, 37

Sasol: ................................................. 8

Shell: ..................... 8, 19, 22, 23, 33, 34

Texas A&M: ...........................14, 25, 37

Total: ...........................................10, 24

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