QATAR SHELL: EIGHT YEARS AND GOING STRONG
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.
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