QATAR SHELL: EIGHT YEARS AND GO­ING STRONG

Qatar Today - - COUNTRY REPORT THE NETHERLANDS -

THE NETHER­LANDS-BASED EN­ERGY MA­JOR, QATAR SHELL, THE LARGEST IN­VESTOR IN QATAR, HAS IN­VESTED AL­MOST QR76.44 BIL­LION ($ 21 BIL­LION) IN THE LAST EIGHT YEARS WHICH IN­CLUDES A HUGE GTL FA­CIL­ITY THAT WILL BE DE­LIV­ER­ING VALUE TO QATAR AND SHELL'S SHARE­HOLD­ERS FOR DECADES TO COME.

The two projects (The Pearl GTL and Qatar­gas-4 started up in early 2011 will gen­er­ate QR14.56 bil­lion ($4 bil­lion) rev­enues per an­num for Shell at QR254.5 per bar­rel. Qatar Shell looks for­ward to more growth op­por­tu­ni­ties in the fu­ture as Qatar's en­ergy out­put will rise just like it has over the last few years when hy­dro­car­bon pro­duc­tion went from ap­prox­i­mately 2 mil­lion boe ( bar­rel of oil) per day in 2006 to 5 mil­lion boe per day by 2012.

In 2011, Pearl GTL and Qatar­gas 4 went on stream and these projects rep­re­sent over 10% of Qatar Shell, in terms of pro­duc­tion, cap­i­tal em­ployed and cash flow.

Pearl Gas to Liq­uids (GTL)

The Pearl GTL is the largest in­te­grated Gas to Liq­uids (GTL) project in the world and the largest en­ergy project ever launched within the bor­ders of Qatar. It is also the largest sin­gle con­struc­tion site in the oil and gas busi­ness in the world. With an in­vest­ment of QR65-69 bil­lion ($18-$19 bil­lion), Pearl GTL is Qatar Shell's big­gest sin­gle in­vest­ment, and also the largest sin­gle FTSE 100 project in­vest­ment in the world.

The in­te­grated project pro­duces 1.6 bil­lion cu­bic feet of well­head gas per day from the North Field which is con­verted on­shore into 140kb per day of GTL prod­ucts that com­prise prin­ci­pally – GTL Gasoil (clear, odour­less and low emis­sion

– used in mod­ern diesel en­gines), naph­tha, kerosene (for avi­a­tion), nor­mal paraf­fins and high qual­ity base oils for lu­bri­cants. In ad­di­tion, Pearl GTL will pro­duce 120kboe/d of up­stream prod­ucts (eth­ane, sul­phur, LPG and con­den­sates). The on­shore por­tion of the project is ar­guably the most com­plex project un­der con­struc­tion in the en­ergy busi­ness to­day.

At peak, over 52,000 peo­ple were work­ing on the con­struc­tion site. Qatar Shell placed spe­cific fo­cus on worker wel­fare and safety. The Pearl Vil­lage was de­signed to ac­com­mo­date the work­force and set a new bench­mark in the Mid­dle East for the stan­dards of recre­ation, com­mu­ni­ca­tion, train­ing fa­cil­i­ties and health sup­port.

Qatar­gas 4 (QG-4)

The Qatar­gas 4 project is an in­te­grated LNG project com­prises up­stream gas pro­duc­tion fa­cil­i­ties to pro­duce ap­prox­i­mately 1.4 bil­lion cu­bic feet per day of nat­u­ral gas, pro­cessed into 7.8 mil­lion tonnes per year LNG and an av­er­age of ap­prox­i­mately 24,000 bbl per day LPG and 46,000 bbl per day of con­den­sate from Qatar's North Field over the 25-year life of the project. Shell is a 30% share­holder, whilst Qatar Petroleum (QP) holds 70%. The LNG is des­tined for mar­kets in the US, Dubai and China. The fi­nanc­ing for the project was han­dled in Lon­don by ar­rangers and ad­vi­sors in­clud­ing the UK banks. The gas wells off­shore will be opened soon.

Al Karaana

In De­cem­ber 2010, Shell reached agree­ment with QP to jointly de­velop a world class petro­chem­i­cal plant in Qatar. Al Karaana Project will fea­ture the largest Mono Eth­yl­ene Gly­col plant ever built. The in­te­grated lump sum FEED con­tract was awarded to Fluor, be­ing the low­est com­pli­ant bid­der. The sign­ing event which took place on Fe­bru­ary 28, 2013 was wit­nessed by H E Dr Al Sada, Min­is­ter of En­ergy & In­dus­try. Dur­ing the same event, the logo of the project was also un­veiled. For Shell, the significance of the FEED award is that it is a sin­gle lump sum for a FEED of such size and com­plex­ity.

Stasco / Nak­i­lat

In late 2006, Qatar­gas Trans­port Com­pany Ltd (Nak­i­lat) ap­pointed Shell as the ship­ping and mar­itime ser­vices provider for Nak­i­lat's fleet of some 25 new­build liq­ue­fied nat­u­ral gas (LNG) car­ri­ers, in­clud­ing those de­liv­er­ing LNG to the UK. These ships are the largest LNG car­ri­ers ever built, equiv­a­lent in size to the large US air­craft car­ri­ers. Shell is pro­vid­ing a full range of ship­ping ser­vices for Nak­i­lat, in­clud­ing staff re­cruit­ment, train­ing and op­er­a­tional man­age­ment of the ves­sels. Shell Ship­ping's global head­quar­ters is based in Lon­don and a large part of the re­cruit­ment, train­ing and devel­op­ment of 1200 of­fi­cers and crew took place in the UK.

Qatar Shell Re­search & Tech­nol­ogy Cen­tre

Shell is an an­chor ten­ant of Qatar Foun­da­tion's Sci­ence and Tech­nol­ogy Park, lo­cated within Ed­u­ca­tion City, hav­ing signed an agree­ment in 2005. Shell's state of the art re­search and tech­nol­ogy cen­tre was opened in 2008, mak­ing Shell the first ten­ant to move into the per­ma­nent Qatar Sci­ence and Tech­nol­ogy Park build­ing. Shell plans sub­stan­tial ex­pen­di­ture of up to QR364 mil­lion ($100 mil­lion) over a 10-year pe­riod on a tech­nol­ogy pro­gramme, ini­tially fo­cus­ing on up­stream and GTL tech­nolo­gies, by-prod­uct man­age­ment (sul­phur, water and CO ), and a re­lated train­ing cen­tre.

In June 2008 QP, the Qatar Sci­ence and Tech­nol­ogy Park and Shell signed an agree­ment to jointly fund a QR254.8 mil­lion ($70 mil­lion) pro­gramme to study CO stor­age in sub­sur­face car­bon­ate reser­voirs with Im­pe­rial Col­lege Lon­don, one of the largest such re­search grants ever placed. The aim will be to utilise the re­sults of this re­search work in an ac­tual Car­bon Cap­ture and Stor­age project in Qatar.

Cor­po­rate So­cial Re­spon­si­bil­ity (CSR) and Qatari­sa­tion

Qatar Shell has been wholly com­mit­ted to sup­port­ing HH The Emir Sheikh Tamim bin Ha­mad Al Thani's Qatar Na­tional Vi­sion 2030. In ad­di­tion to its sig­nif­i­cant con­tri­bu­tion to the Vi­sion's Eco­nomic Pil­lar, it has a broad CSR pro­gramme con­tribut­ing to the So­cial and Hu­man Pil­lars. The four fo­cus themes are: Tech­ni­cal ca­pa­bil­ity devel­op­ment (in­clud­ing univer­sity outreach and TAFAWOQ, a Project Man­age­ment cen­tre of ex­cel­lence in part­ner­ship with QP and Qatar Foun­da­tion's Ha­mad bin Khal­ifa Univer­sity); En­ter­prise devel­op­ment sup­port (rang­ing from en­cour­ag­ing en­trepreneur­ship among school and univer­sity stu­dents, through to award­ing Pearl GTL sup­ply con­tracts to lo­cal com­pa­nies); Road safety (in­clud­ing cur­ricu­lum and teacher sup­port for class­room pro­grammes with the Supreme Ed­u­ca­tion Coun­cil); and Healthy life­styles through foot­ball (ad­dress­ing obe­sity through a pro­gramme with the Qatar Foot­ball As­so­ci­a­tion).

How­ever Qatar Shell's great­est con­tri­bu­tion to the so­cial and hu­man agenda of the QNV 2030 is em­ploy­ment of Qataris, en­sur­ing that they are fully sup­ported with the devel­op­ment they need to reach their full po­ten­tial, at all lev­els of the or­gan­i­sa­tion and across all func­tions

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