04

january 2014

perspectives on the energy industry

North star
big interview
Pete Jones on safety, risk and
exploration in the North Sea

Building bridges
strategic relations
Khaled Bader Al Sayari forges
relationships on the front line

Frontier spirit
people
Cowboy Jim Berry dispenses
wisdom from the rodeo

A brighter future
education
TAQA helps deaf children in
Ghana to fulfil their potential

Rising to meet the

growing global demand
for fresh water

in this issue
What you think

light show
big picture
As the sun fades behind Kurdistans rugged
mountain range, TAQAs Atrush rig lights up the
night sky. Located 85 kilometres from Erbil in
the Kurdistan region of Iraq, Atrush is initially
expected to produce 30,000 barrels of oil
per day when it comes online in 2015.
See TAQA News on page 6.

TAQAWORLD is the global magazine

from TAQA, the Abu Dhabi National
Energy Company, distributed to
our employees, partners and
friends in 11 countries. We aim to
provide insight into our industry
and open a window onto the people
who make things happen. We welcome
your comments on this issue, and your
suggestions for future articles.
Email: taqa.world@taqaglobal.com

04 to
letters
the editor

Readers comments on hot topics and

previous issues of the magazine

05today
taqa

A message from Carl Sheldon, Chief

Executive Officer

24 from
music
the heart

Music has always been a passion for our

Legal Counsel Elham Al-Marzouqi

TAQA is a global energy company

with its headquarters in Abu Dhabi
and a footprint spanning four
continents. Our name TAQA
means energy in Arabic.
At TAQA, we have a powerful sense
of purpose, a clear vision for the
future and a shared set of values.
These are the pillars of our business,
driving our strategy and the way we
interact among ourselves and with
all our stakeholders, whether they be
customers, investors, governments,
industry partners or the communities
touched by our activities.

06
our world

Corporate Communications
Abu Dhabi National Energy Company
PJSC TAQA
PO Box: 55224
Abu Dhabi, UAE
T: +971 2 691 4900
F: +971 2 691 4666
E: info@taqaglobal.com

The global water market is going through a

21st-century renaissance

Photography: Corbis, Getty Images

and TAQA.
TAQAWORLD is printed in the UAE
on paper sourced from sustainable
forests, and approved by the
Programme for the Endorsement of
Forest Certification (PEFC).

PEFC Certified
This product is
from sustainably
managed forests and
controlled sources

PEFC/01-31-83

www.pefc.org

A round-up of the latest developments

across the groups global operations

10 world
water

26revolution
gas

We talk to David Cook, TAQAs Head of Oil

& Gas, about how the shale gas boom is
transforming the energy industry

30 to success
passport
14cowboy way
the

Jim Berry explains the lure of the rodeo

and his role at TAQA

18 than life
larger

We train our lens on the Bergermeer plant,

Europes largest open-access gas facility

20 interview
the big

Pete Jones outlines the challenges he faces

as Managing Director of TAQA in the UK

Khaled Bader Al Sayari on why his role

as the groups point man is anything
but predictable

32 for life
lessons
How we help deaf
schoolchildren in Ghana
to reach their potential

were well placed

to be water
industry leaders

letters

We welcome your comments on this issue, and your suggestions

for future articles. Email us at taqa.world@taqaglobal.com

safety procedures saved my life

I enjoyed reading the article in your last issue about how TAQAs well-implemented safety
procedures prevented any damage being caused from gas leaks at the start of the year.
It served as a sharp reminder of how dangerous some of the work in the oil and gas
industry can be and its a point I wish to reiterate.
As a diver for Bibby Topaz, I frequently work on oil rig drills and regularly go through
strict safety measures to ensure a successful dive. But sometimes things can still go
wrong. Last year, a Dynamic Positioning System failure aboard the vessel I was working
from severed my umbilical cord and I slipped into unconsciousness without gas for nearly
25 minutes. By the time I was found, I was freezing and lifeless.
While the bravery, quick thinking and professionalism of all those aboard Bibby
Topaz played an invaluable role in my survival, there can be no doubt that the safety
controls, procedures and management structures in place were invaluable in effecting
a successful rescue.
It was a collection of actions that saved my life. Our offshore construction manager
followed protocol seamlessly. The bridge crew professionally followed procedures to
regain control of the ships Dynamic Positioning System. Our dive supervisor prepared
the team for the rescue of a seemingly dead diver with efficiency. The technicians had
meticulously serviced my dive helmet, which ensured it did not fail at the critical moment.
The rescue procedures were almost second nature to the dive team, thanks to years of
drills and safety training. All these factors came together to allow the team aboard the
ship to turn what seemed like a hopeless scenario into a success story.
Safety procedures and protocols can all too easily be dismissed as paperwork exercises
or lip service to an overbearing safety culture, but for us that night they were very real,
and very necessary. Without them I wouldnt be here today. Its as simple as that.
Chris Lemons
Saturation diver, DSV Bibby Topaz
decoupling water and power
Most Middle Eastern countries need to
produce drinking water using desalination
techniques. The most popular way of
producing drinking water is by the use of
cogeneration plants, which also produce
power. Such plants use the waste heat
from the generation cycle to heat water,
which is produced to World Health
Organization drinking water standards.
The cogeneration aspects of this
operation are generally at their most
efficient when the generation and water
plants are at their maximum output. This
cozy relationship is perfect if demands
are expanding at this optimum ratio.
However, typically, things are never
optimal. During the past few years,
Abu Dhabi has experienced a significant
increase in power demand that has not
been matched by the need for water.
This increase has culminated in the
building of four nuclear power plants.
Nuclear plants are immensely complex
and there is little engineering appetite for
the building of large cogeneration-type
04 issue 04

power stations. Some smaller ones are in

operation though. The Abu Dhabi sector
will need to adopt a different approach to
future water production, and this is one
of the key challenges for the sector going
forward. Such challenges will likely
require the sector to move towards
membrane technology, or reverse
osmosis (RO), rather than purely thermal.
RO installations are likely to become
more prevalent in the emirate, especially
along the Gulf coast. This is not without
its challenges, especially the high
temperatures and higher salt content by
volume compared to the east coast of
the UAE. However, the future is likely
to see a major expansion of RO standalone plants, using electricity as their
primary fuel and allowing a decoupling
between the production of electricity
and water. Consequently, the prospect
of independent water producers is now
a real possibility in the emirate.
Nick Carter
Director general, Regulation and
Supervision Bureau of Abu Dhabi, UAE

taqa today

Carl Sheldon

Chief Executive Officer

ghana still has a long way to go

I was interested to read the article in your
last issue about Ghanas status as a role
model for economic and political reform
in West Africa.
While there have been huge
improvements in the country, Ghana still
faces major challenges, many of which
are highlighted in the World Bank Ghana
Offices flagship energy report, published
in July 2013.
Many parts of the country still
experience electricity shortages and
rolling power blackouts, and this at a time
when Ghanas fast-growing economy is
becoming even more dependent on reliable
energy supplies.
If we are to reach our growth potential,
changes need to be made. Among them,
we must review existing power structures
to eliminate their dysfunction and improve
planning so that new generation projects
can be continually developed to keep up
with the growing demand. We must also
restructure key sector utilities for better
accountability, efficiency and effectiveness.
Finally, we must simplify processes and
speed up decisions to boost private sector
investment in power generation.
So while the tide is turning in Ghana,
integral changes still need to be made if
were to consolidate our middle-income
economy status. I believe this laudable goal
could be achieved by the end of the decade
if there is proactive decision-making across
the board (from the government to private
companies), along the lines that weve
recommended in our report.
To view the World Banks report
on Ghanas energy sector, visit
tinyurl.com/qylmtxh
Sunil Mathrani
Task team leader, World Bank Report, Ghana

TAQAWORLD is the global

magazine from TAQA,
distributed to our employees,
partners and friends across
11 countries.

dear reader,
The water industry is coming of age. A commodity that was long taken for
granted is now increasingly valued as highly as other natural resources, especially
in the Arabian Gulf region. To illustrate this, in our cover story we explore an
industry that is expected to grow to a value worldwide of US$432 billion annually
within the next five years.
Of course, TAQA is already the worlds second largest desalination company
through its ownership of eight power and water desalination plants in the UAE.
But the country is moving towards more independent water projects, and away
from the traditional power and water model. This trend will only increase once
the countrys nuclear energy programme comes online in a few years time.
With the establishment of a dedicated water division, and the development of
the UAEs first reverse osmosis plant in the emirate of Fujairah, TAQA is well
placed to be a market leader in this area.
Our reputation revolves around acting as a responsible steward of strategic
natural resources, and operating to the highest international standards for
safety and the environment. Nowhere is this more important than in the North
Sea, where we operate five offshore oil and gas production platforms. Pete
Jones, the new Managing Director in the UK, is quick to underline this. In his first
major interview since moving to TAQA, he talks in-depth about the work the
company is doing to prolong the life of our North Sea assets and manage risk
in a late-life business.
As you will read in this issue, we are also active members of the communities
where we operate. We highlight this side of our business with a feature on
educational programmes in Ghana. Naturally, pursuing excellence is a guiding light
for all TAQA activities. And this is illustrated by the people who help make TAQA
tick, such as rodeo rider and field operator Jim Berry and Elham Al-Marzouqi,
Legal Counsel and concert cellist. They are just two more examples of the
diversity and talent of our staff. I am delighted to present the fourth edition of
our magazine and look forward to presenting more stimulating stories from our
global business in 2014.
Kind regards,

perspectives on the energy industry 05

taqa news

uae

A round-up of the latest developments

across TAQA's global operations

100,000
The eventual expected oil
production capacity, in
barrels per day, at the
Atrush Block development
in the Kurdistan region
of Iraq

canada

4,800

Power & Water

Oil & Gas

The total coal unloading

capacity, in tonnes per hour,
at TAQAs Jorf Lasfar plant
in Morocco, following the
acquisition of two new
unloading machines

Energy Solutions
* Pending final approval

Shuweihat S2 plant
powers 300,000 homes
in Abu Dhabi
A new US$2.7 billion power and water plant
in Abu Dhabis Western Region of Al Gharbia
is generating enough electricity and water
for more than 300,000 homes.
The facility has been officially
inaugurated by His Highness Sheikh
Hamdan bin Zayed Al Nahyan, the UAE
Rulers Representative in the Western
Region. He was joined by other senior
Government representatives and dignitaries
at the ceremony. [This] is a practical
translation of the interest of the state in
providing basic services and decent living
conditions to Emiratis in line with Abu Dhabi
Vision 2030, said Sheikh Hamdan.
Located 260 kilometres southwest of
Abu Dhabi, Shuweihat S2 (pictured below)
is the latest addition to the power and water
infrastructure network. It adds 1,510
megawatts to the emirates generation
capacity and produces up to 100 million
imperial gallons of potable water each day.
The late Sheikh Zayed bin Sultan Al
Nahyan told us that we must not rely on oil
alone as the main source of our national
income, advising that we must diversify the
sources of our revenue and construct
economic projects that will ensure a free,
stable and dignified life for the people, His
Excellency Abdulla Saif Al-Nuaimi, Director
General of the Abu Dhabi Water and

Electricity Authority (ADWEA) and ViceChairman of TAQA, said at the ceremony.

Shuweihat S2 cost US$2.7bn to build and
is majority owned by TAQA. The plant was
constructed to meet the challenge of
providing reliable energy and water to a
population in Abu Dhabi predicted to rise to
five million by 2030.
We are pleased to be part of this
partnership to create greater prosperity for
the communities of Al Gharbia through the
development of infrastructure and economic
growth, said Carl Sheldon, Chief Executive
Officer of TAQA. By investing in new power
and water desalination infrastructure we are
helping to ensure energy security and
resilience of one of the most important
engines of Abu Dhabi's growth.
Electricity and water supplied from
Shuweihat S2 will be transferred to
Abu Dhabi Water and Electricity
Company (ADWEC) under a 25-year
purchase agreement.
For more, see Water World on page 10.

iraq

Iraq block development

approved by authorities
TAQA has been given the go-ahead from
the Kurdistan Regional Government
(KRG) for the first phase in the Atrush
Block development.
Located 85 kilometres from Erbil in the
Kurdistan region of Iraq, Atrush is initially
expected to produce 30,000 barrels of oil
per day (bpd) when it comes online in 2015.
That is likely to increase to 100,000 bpd.
The Kurdistan region of Iraq is an
exciting exploration frontier and has
tremendous potential, said David Cook,
Executive Officer and Head of Oil & Gas at
TAQA. Through the Atrush development,
TAQA is delighted to be part of the
economic progress and growth in the region.
It is our ambition to build an
integrated business in the Kurdistan region
of Iraq, including potential power and
water projects in addition to oil and gas
infrastructure developments.
06 issue 04

TAQA plans to invest more than

US$300 million in phase one. This
involves drilling three production wells
and the construction of a central
processing facility.
Discovered in 2011, the Atrush field
is expected to provide long-term benefits
to the region and the community. The
agreement with the KRG will run for
25 years.
This opportunity allows us to utilise
our world-class expertise and capabilities
gained through the management of
complex projects around the globe, said
Leo Koot, TAQAs Managing Director in
Iraq. We are confident that progress
achieved in our Atrush operations will
provide a vital contribution to the future
economy of the Kurdistan region of Iraq.
We are delighted to be working
closely with our partners in the KRG,
he added.
The Atrush partners are looking at a
second development phase with another
30,000 bpd production facility.

25

The length, in years, of

TAQAs agreement with
the Kurdistan Regional
Government to develop
the Atrush Block in the
Kurdistan region of Iraq

300,000
The number of homes that
will receive electricity and
water from the Shuweihat
S2 power and water plant,
which is majority owned
by TAQA

north sea

TAQA hits UK
production record
Cormorant Alpha is back on stream and
helping TAQA break production records.
The North Sea oil production platform
handles 10,000 barrels per day (bpd) of
crude from TAQAs South Cormorant field,
and is also the conduit for the Brent System
Pipeline. This carries approximately 10% of
the UKs total oil production.
Since coming back online, TAQAs
production in the UK has hit a record 70,000
bpd. That Cormorant Alpha is back up and
running is a tribute to the expertise and
teamwork of our North Sea workforce, said
Pete Jones, who took over as Managing
Director of TAQAs UK business in July. The
way that the business handled the issues on
Cormorant Alpha earned it a great deal of
respect across the industry. It was extremely
open, honest and professional. Within the

industry and beyond, it was recognised

that this is the way we need to work.
TAQA acquired the Cormorant Alpha,
North Cormorant, Eider and Tern North
Sea platforms in 2008, and three years
later began a long-term inspection, repair
and maintenance programme. TAQA
has since invested more than 300 million
in maintenance and upgrades across
the platforms.
In January and March of 2013, there
were two hydrocarbon releases within a leg
of the Cormorant Alpha platform. There was
no leak into the environment, but TAQA
decided to close the platform while repairs
were carried out.
Cormorant Alpha had been identified as
a site for inspection before the incident, and
it happened while we were starting the
process, said Mr Jones. It is a critical piece
of infrastructure for UK energy supply and
this planned programme of work will help
extend its original design life.
See the Pete Jones interview on page 20.
perspectives on the energy industry 07

taqa news

84

One of the new coal unloaders

being unloaded at the Jorf
Lasfar port in Morocco
The number of gigawatts
Middle East countries will
generate from solar power
by 2017

US$747bn
The amount Norway
has amassed in its
sovereign wealth fund
from the proceeds of its
energy resources

morocco

Jaap Nauta named

GVP Assurance and
Internal Control

uae shining example of solar

energy growth
The UAE has emerged as one of the biggest
solar energy markets in the Middle East
after countries from the Gulf Cooperation
Council (GCC) pumped more than US$155
billion into the industry. Along with Saudi
Arabia, the UAE was singled out as one of
the major players in a region that will
generate 84 gigawatts by 2017 from
solar power.
Over the years, solar power has been
acknowledged as the most promising source
of renewable energy and GCC governments
have demonstrated their keenness to shift
from traditional energy sources to these
low-cost and abundant alternatives, said
Derek Burston, director of the UK-based
Bowmedia, the organisers of the Gulf Sol
2013 summit at the Dubai International
Exhibition Centre.
Direct radiation in many Middle Eastern
countries exceeds 6kWh per square metre

per day, making for excellent solar potential.

The Emirates Solar Industry Association
(ESIA) has predicted that the key markets in
the Middle East will be Saudi Arabia, Jordan
and the UAE.
The economics of switching to solar
energy in the Middle East is more compelling
with oil prices increasing and solar
technology costs plummeting, said Marc
Norman, marketing and communications
director of ESIA.

china to fuel growth in global

demand for oil
Global demand for oil will have risen by
1.1% in 2013 to 90.26 million barrels per
day (bpd), according to a US government
department. The Energy Information
Administration (EIA) expects the trend to
continue in 2014 with developing nations
fuelling a 1.3% increase to 91.43m bpd.
The EIA has also forecast that demand
for oil from nations outside of the
Organisation for Economic Cooperation and
Development will lead the consumption
boom. Demand is likely to slip in Europe and
Japan and post slim gains in the US.
China, the worlds second-biggest oil
consumer after the US, is expected to
account for about 40% of global growth.
Oil demand in the country was expected to
rise by 4%, or 410,000 bpd, in 2013 to
10.69m bpd. An expected 4.1% rise in 2014
will boost demand by 440,000 bpd to
11.13m bpd.

canadas new gas boom

Canada is expected to go
through a new energy
boom. High-tech drilling
techniques to extract
natural gas and oil from
underground shale
formations in North America
are changing the industry.
The Vancouver Sun has
reported that new gas
resources in places such as
British Columbia are
expected to create jobs
and revenue through the
export of liquefied natural
gas to Asia. Across Canada,
annual gas production is
expected to double by
2035 and contribute
US$940 billion to the
countrys GDP during that
period. Export facilities
have already been
earmarked along the British
Columbia coastline.
There is literally shale
gas everywhere in North
America, said Geoff
Morrison, British Columbia
operations manager for the
Canadian Association of
Petroleum Producers.
See Gas Revolution on
page 26.

petronas plans us$35bn shale

investment in canada
Petronas plans to invest US$35 billion to
develop shale gas assets in Canada. The
Malaysian state oil company is also looking
to build a liquefied natural gas (LNG) export
terminal linking the country to energythirsty Asian markets.
Najib Razak, the Malaysian Prime
Minister, was quoted in the media saying
that the project, announced last year after
Petronas bought Progress Energy, would
make the Southeast Asian country the
biggest foreign investor in Canada.
There is a 30-year timeline for the
US$35bn investment, Mr Najib said after
holding bilateral meetings with the Canadian
Prime Minister Stephen Harper.
Petronas had previously announced that
it would spend US$20bn to build two LNG
trains on the west coast, according to the
Reuters news agency. This includes a pipeline
to be built by TransCanada from the fields in
the shale-rich Montney region.

uae

Coal unloaders lift

Jorf Lasfar capacity

industry news

Two new coal unloading machines have

arrived at the Jorf Lasfar port in Morocco,
marking a milestone in the expansion of the
kingdoms largest power plant.
The two unloaders, which take coal from
ocean-going bulk carriers and transfer it to
the conveyor belt to the plant, will increase
the unloading capacity from 2,400 tonnes
per hour to 4,800 tonnes per hour. It has
been quite a complex operation because we
had to build a new quay to support the
unloaders, said Majid Iraqui, Managing
Director of TAQAs Moroccan business.
The new unloaders will be supplying extra
coal to enable the Jorf Lasfar plant to raise
its production capacity by 50% to 2,000
megawatts. This facility already supplies
about 40% of all the electricity in Morocco,
a nation of 32.6 million people.
TAQA is investing approximately US$1.6
billion in the expansion, with two new units
due to be commissioned in 2014.
The unloaders, worth an estimated
US$40 million, were supplied by Cargotec of
Sweden under an engineering procurement
and supply contract signed in 2011. They
were installed at the end of June 2013.
08 issue 04

Jaap Nauta has been appointed Group Vice

President of Assurance and Internal Control
at TAQA. Mr Nauta will join the company
from PricewaterhouseCoopers (PwC) in Abu
Dhabi where he has been the oil and gas
expert since 2011.
Reporting to His Excellency Salem Sultan
Al-Dhaheri, Chairman of the Audit
Committee, and Carl Sheldon, the Chief
Executive Officer, Mr Nauta will have overall
accountability for risk management across
the business. He will also lead TAQAs internal
audit and oversee the activity of the other
group-wide assurance functions.
find us at:
taqaglobal.com
twitter.com/taqaglobal
flickr.com/photos/taqaglobal
linkedin.com/company/taqa
vimeo.com/channels/taqa

2035
The year by which Canadas
annual gas production is
expected to double

US$35bn
The amount Malaysian state
oil company Petronas plans
to invest in developing its
shale gas business in Canada

40%

The percentage of global

growth in oil demand in
2013 that was predicted to
be accounted for by China,
the worlds second-biggest
oil consumer after the US

norways lesson in economic prudence

Jens Stoltenberg (above), the outgoing Norwegian Prime
Minister, has told spendthrift resource-rich nations that
they could learn from his countrys hard-headed approach to
oil wealth. In a speech at Harvard University, Mr Stoltenberg
said indebted European nations should look to Norway when
it comes to economic prudence after amassing a US$747
billion sovereign wealth fund (SWF) from its energy riches.
That way the fund lasts forever, he said. The problem in
Europe with the deficits and the debt crisis is that many
European countries have spent money they dont have.
Norways SWF is the biggest in the world, and generates
money from its ownership of petroleum fields and taxes on
oil and gas. The country is the worlds second-largest gas
exporter and the seventh-largest oil exporter.
There are many, many other countries in the world that
are facing the same kinds of challenges that we are facing:
huge temporary income from natural resources, said Mr
Stoltenberg. So, if there is a danger of an oil curse, Norway
is really exposed to that danger. But we have managed to
avoid it.
Countries such as the UAE and Qatar have taken a similar
approach and set up substantial SWFs.

perspectives on the energy industry 09

power and water

Some have too little, others too much. But no one

can live without water. Ahmed Bin Abbood Al Adawi,
the new head of TAQAs global water operation, talks
about the future of the industry

01 Ahmed Bin Abbood Al Adawi



evenues from the global

water industry are
predicted to hit nearly
half a trillion dollars by
2017, and power and utility
companies are jostling for
a bigger slice of the cake.
TAQA is already one of the largest
desalination companies in the world, says
Ahmed Bin Abbood Al Adawi, the new head
of TAQAs global water operation. So we
thought why dont we expand and capture
more of the market.
International research shows the
opportunities are there. According to
Lucintel, a leading global management
consulting and market research firm,
improvements in global economic
conditions, especially in emerging
economies, [will] drive growth in waste
water and sewage treatment markets
across the globe.

10 issue 04

01

Lucintels research paper, Global Water

Utilities Industry 2012-2017: Trend, Profit,
and Forecast Analysis, predicts that growth
will reach an estimated US$432 billion within
five years. But it notes that, the market is
highly fragmented with a few major players,
and only the companies best placed to react
to the increasing investment in water
infrastructure and sewage removal facilities
will cash in.
Just how TAQA has emerged as one of
those best placed companies lies in its links
to Abu Dhabi Water & Electricity Authority
(ADWEA) and the UAE Government, says
Mr Al Adawi.
Here, historically, all power and water
projects were planned through ADWEA, he
explains. But in 2011 TAQA was asked to
look at its water projects and assess how
they would perform as an independent
business stream. We were seeing US$800
million a year in revenue coming from our

water business, which represented 43% of

our total power and water revenue. So we
had to ask: what do we think about water as
an independent activity?
a changing industry
Since the 1980s, producing fresh water for
Abu Dhabi has been about desalination.
These plants were built alongside power
stations because generating electricity also
generates heat. This heat then powered
technology known as Multi Stage Flash
(MSF), turning seawater into tap water.
Today, Abu Dhabi produces about 98% of its
880 million imperial gallons per day (MIGD)
by using mainly MSF and Multiple Effect
Distillation (MED).
But the industry is changing, and it is Mr
Al Adawis job to ensure TAQA is capable of
meeting the many challenges coming down
the pipe. Increasing urbanisation and the
rapid industrial expansion outlined in the

Abu Dhabi Economic Vision 2030 will also

see water demand rise. The emirate alone
will require 1,150 MIGD by 2021.
By then, Abu Dhabi will also need
20-plus gigawatts (GW) of electricity
capacity during the summer. But in
the winter that demand is predicted to
fall to one third of summer peak. A
sensible response would be to reduce
electricity capacity in the low season, but
Abu Dhabi will still require the 1,150 MIGD
of water. And since the desalination plants
run off the power stations, where does
the water come from if almost three
quarters of the power needed to produce
it suddenly isnt there?
Added to that is the UAEs nuclear
energy programme, which will see four
reactors coming online between 2018 and
2022. Together, all these developments are
forcing the emirate to move towards
independent water projects.
There is a local and regional market

shift to independent water projects

a decoupling from power generation,
explains Mr Al Adawi. Most countries in
the region, like the UAE, have a huge power
capacity, but it serves a highly seasonal
demand. And that makes it expensive and
wasteful to ensure steady water production
using power plant-based thermal
technology. We need a way to ensure
steady water production without having to
generate unwanted electricity.
new technology
New technology, it appears, is available
to provide the answer. Improvements in
reverse osmosis (RO) technology an
alternative desalination technique that
uses specially sensitive membranes to
filter seawater have now made it a
cheaper alternative.
RO can now desalinate greater
quantities of seawater at much cheaper

Water is
easy: to move
it you just build
a pipeline.

Ahmed Bin Abbood Al Adawi,

Head of Water, TAQA

rates, without affecting efficiency or

quality, and without the need for huge
amounts of energy. Also, once freed from
being linked to power stations, independent
desalination plants can be sited anywhere
along a countrys coast. The UAE is already
looking at potential sites in Fujairah and in
the Western Region.
GCC and MENA [Middle East and North
Africa] countries worry about water
security, so there is a clear need for diverse
locations. RO plants are simpler and easier
to build and you can site them close to their
end users, whereas power plants are hugely
expensive. They must serve huge areas and
so require a vast infrastructure of
transmission lines, substations and power
networks. Water is easy: to move it you just
build a pipeline, says Mr Al Adawi.
Also the water market itself is changing
shape, with a new emphasis on wastewater treatment. In the past, countries did
not see the need to treat waste water. It
ended up being stored in septic tanks or
pumped, untreated, directly into the sea.
But that approach has had consequences.
Across the region, the volume of waste to
be stored is becoming huge, and in many
sites it is leaking into the groundwater and
polluting it. Pumping waste water directly
into the sea is also causing huge
environmental problems for coastal waters.
As a result, lots of governments across
the region are now looking to waste-water
companies to eliminate their environmental

perspectives on the energy industry 11

top 10 desalination
markets 2011-2018
2018

2013

2016

2012

2015

pre-treatment

2014

2017

2011

US$m
9,000

how
desalination
works

12 issue 04

We need new
capacity to meet
projected growth
in demand.

Source: ADDC/AADC, 2009

Source: ADDC/AADC, 2009

power-plant blueprint
The operational model for the
independent water business will follow
the power-plant blueprint. This involves
TAQA owning a majority shareholding
while private investors are invited in to
run specific parts of any project,
such as undertaking local
maintenance.

7,000
6,000
5,000
4,000
3,000
2,000

Industrial: 1%

water
consumption
Industrial: 1%
(2009)

1,000

Government: 29%

Government: 29%

Commercial: 11%

Chile

Commercial: 11%

Israel

Agricultural: 3%

Australia

Agricultural: 3%

Libya

Residental: 56%

India

Residential: 56%

China

potable water
consumption by sector:
abu dhabi, 2009

UAE

debrine

Kuwait

water
consumption
(2009)

fresh
water

different markets, to build the operations

business, and to build the TAQA brand.
The emphasis will also be on establishing the
UAE as a global centre for water industry
technology. As TAQAs presence in the
sector grows, the skills and technical
know-how it acquires will boost the
companys reputation as a market leader in
the industry. This will help expand the
countrys industrial base, fulfilling the
Economic Vision 2030.
Abu Dhabi will be our focus for the first
two to three years, says Mr Al Adawi. At
present, our capacity is sufficient. We are
meeting the demand. We have capacity of
900 MIGD and demand is 880 MIGD. But
we need new capacity to meet projected
growth in demand. By 2016-17 we need
new desalination capacity equal to 160
MIGD. And for replacement of old capacity
to 2030, that will require a further 800
MIGD and will cost over US$5bn. So we
need to start now to expand our
independent water project. There is an
urgency about it.

Saudi Arabia

separate water business

The next step has been to look at the value
chains of the business and ask, where do we
want to be? And then to lay down a
roadmap of how to get there. The strategy
that TAQA has decided on is to establish a
separate water business, with a geographic
reach across MENA as well as India.
The aim will be to build the business
organically and through external growth.
Organic growth will come through equity
stakes in future ADWEA projects locally, and
in the MENA region by tendering for owner/
operator projects.
External growth will be achieved through
acquiring existing plants both desalination
and waste water and through the
acquisition of existing companies if or when
they become available.
TAQA would like to fast-track its
presence as a water player, says Mr Al
Adawi. One way would be to capture
market assets. We have a plant-focused
strategy, and we want to be developer,
owner and operator of desalination and
waste-water assets, so we will be looking at
opportunities in the region to acquire those
assets. The idea is to become present in

reverse
osmosis

US

problems. They are also interested in

waste-water management because proper
water treatment provides useful water
for irrigation.
So that is how improving technology and
the changing shape of demand have now
made an independent water business viable
for TAQA, adds Mr Al Adawi. We looked at
the industry, and found there is a business
model there.

01 & 02 Inside the Fujairah 2 water and


power plant in the UAE

8,000

01

Source: Global Water Market 2014

02
The mix of TAQA ownership and private
investment already operates in eight
independent power and water projects in
the UAE. In terms of waste-water projects,
Abu Dhabi has two major companies
treating 860,000 cubic metres a day of
waste water, ISTP 1 and 2. ADWEA owns
60% of the plants and foreign investors
40%. But more treatment capacity is
required as Abu Dhabi continues to grow.
This is an amazing programme that
allows us to attract foreign money to our
country for investment, says Mr Al Adawi.
We are discussing how to transfer the
waste-water assets from ADWEA to
TAQA; it has been one of the major
activities in 2013. The goal is to establish
an independent Abu Dhabi-based water
company with an in-house development
and design capacity to service our
growing needs, and to provide security
of supply.

Ahmed Bin Abbood Al Adawi,

Head of Water, TAQA

perspectives on the energy industry 13

people

Jim Berry was riding horses at about the same time he

was walking. Now the TAQA field operator is part of
North Americas colourful rodeo scene

im Berry, a 31-year-old
cowboy from Alberta, Canada,
has no car, no watch and
doesnt like travelling for
holidays. Unless, that is,
there is a rodeo on.
And there were a lot of rodeos on this
season. I travelled halfway across America
in the last two weeks, he says, relaxing at
an outdoor caf after riding a bronco at the
Calgary Stampede, where he picked up fifth
place and US$1,500 prize money on the
first day.
Mr Berry might like to be a professional
cowboy, but he has a young family to
support, so there is his day job as a field

operator for TAQA, based at Rocky

Mountain House in Alberta.
It keeps him in the saddle at an age
when many professional riders would have
retired, he says. After all, he has a tradition
to live up to.
in the family
His father was a wild horse racer and his
grandfather drove chuck wagons at the
Calgary Stampede. Mr Berry grew up on a
ranch and rode a sheep when he was just
three years old. He began riding broncs at
the age of 17. A year later, he was riding
Novice Saddle Bronc at the Stampede,
winning his first rodeo at the age of 20.
I grew up around rodeo, says Mr Berry.
My earliest memories are going to rodeos
with my dad. I have pictures of me on
horseback still in my diapers, and falling off
was just part of growing up. You got up
again, dusted yourself off and got back on.
A few bruises yeah, but nothing Mother
Nature cant clear up. I love the competition,
the money and the freedom of rodeo,
he says.
14 issue 04

perspectives on the energy industry 15

When he is not on the road, he spends

time with his two young children at a ranch
located two hours northwest of Calgary. His
ranch-in-progress, as he describes it, is
nestled in a grove of trees and surrounded
by a barn and corrals he built himself. It gives
him and his wife a view of the Rocky
Mountains in the morning, and a whole
world for his children to play in.
My boy, Coy, is four and my little girl,
Quin, 20 months, he says. They both ride
already, and Quin is definitely the more
adventurous. She would be out there in the
corral right now. Its too early to say whether
they will follow me into rodeo. I dont really
mind if they do or dont, as long as theyre

dedication to rodeo won Mr Berry a rare

honour at the 2013 Stampede, when he
picked up the Guy Weadick Award. Named
after the founder of the Stampede, it goes
to the competitor who best embodies what
the cowboy stands for.
And fitting too, for Mr Berry, as TAQA is
heavily involved in backing the Calgary
Stampede. The company is the main rodeo
sponsor and backer of the Light Horse event,
as well as the Cowboy Up Challenge, one of
the Stampedes showcase events.
The Guy Weadick Award is a symbol
of the ultimate sportsmanship: showing
respect to your fellow competitors, gaining
trust and always pushing towards
excellence, explains Ed LaFehr, President of
TAQAs North American business.
To win, a cowboy must convince the
judges through his ability, appearance,
showmanship, character and sportsmanship
that he, above all others, best captures the
spirit of the Stampede.
Asked to define a cowboy, Mr Berry takes
a deep breath. He has to have a lot of heart
and a lot of try, he says. Because he has to
deal with the elements of Mother Nature
and things in the world that are not as fair as
what civilised people deal with.

the thoughts of
bronco berry
On what a cowboy is
He has to have a lot of
heart and a lot of try
On his children
My boy, Coy, is four and my
little girl, Quin, 20 months.
They both ride already, and
Quin is definitely the more
adventurous
On lucky charms
I never did take to wearing
lucky hats or spurs. Some
people are superstitious like
that but the only thing Ive
ever done was to grab a
piece of mane from the
special horses I rode
On travelling
I travelled halfway
across America in the
last two weeks

my earliest memories are going to

rodeos with my dad. i have pictures of me
on horseback still in my diapers, and
falling off was just part of growing up.
Jim Berry, Field Operator, TAQA

happy. But theyve certainly got used to

being in the saddle.
Even after his riding days are over, Mr
Berry is planning all sorts of new roles in the
rodeo, as pickup man or team rope, he
says. It is too early for him to be thinking
about retiring to his trophy room. He is not
that kind of cowboy, with a flashy Stetson or
silver spurs.
I never did take to wearing lucky hats or
spurs. Some people are superstitious like
that but the only thing Ive ever done was to
grab a piece of mane from the special horses
I rode, he says. The ones you remember.
Must have 15 to 20 pieces of mane now.
Each one a memory. Some of them were real
special. I still remember Zappy Delivery and
Cool Alley. I only rode her once in my career.
She was a famous lady. She really did
everything special; she had a lot of flair, a real
high kicker.
rare honour
In his speech, and his way of looking at the
world, he really lives the cowboy life. And the
way he lives it has not gone unnoticed. His
16 issue 04

01

KEEP
CONNECTED
Strong relationships underpin successful companies.
And open communication is the best foundation
for any relationship. Thats why we launched
TAQAWORLD, which is distributed to our employees,
partners and friends in 11 countries. In these pages,
find out how we generate energy and growth for
the communities in which we operate.

02

Relationships are a two-way

street. Tell us whats on your
mind and what you want to
read about as well as any
other feedback.
Email:
taqa.world@taqaglobal.com

01  im Berry with his wife

J
and two children
02  r Berry in action at
M
the Calgary Stampede
03  eceiving the Guy
R
Weadick Award

03

Larger

big picture

The massive scale of the Bergermeer plant in

the Netherlands is brought into sharp focus.
From a super-sized Slugcatcher to endless webs
of cabling and pipes, Europes largest openaccess gas facility is a construction colossus.
When it is fully operational in 2015, its capacity
will run to 4.1 billion cubic metres of gas

01

02

05

06

than
18 issue 04

04

Life

03

01 The Slugcatcher arrives


in Alkmaar, where it
was transported to
Bergermeer. This monster
of the deep is 58 metres
long, 17 metres wide
and eight metres tall. It
weighs a whopping 550
tonnes. The Slugcatcher
is the first step in the
cleaning and drying
process of natural gas

07

02 These mega pipes


connect the gas
treatment facility in
Boekelermeer with
the gas wells eight
kilometres away. The
pipes run under the A9
motorway and through
the Heiloo forest before
zigzagging through the
countryside
03 Wall of sound. A
10-metre high sound

wall, which cuts down

the noise from drilling,
is dismantled then moved
to a new well location
04  steamroller waits
A
for workers to finish a
section of tarmac at
the plant before moving
in a drilling rig and
other equipment
05 Concentration is

etched on the faces of
workers involved in a
drilling operation
06  orkers stand clear as
W
the gigantic T45 drilling
rig, nearly 55 metres high
and 875 tonnes in weight,
is loaded into place
07 Almost 750 kilometres

of wiring has been
laid at Gas Storage
Bergermeer

perspectives on the energy industry 19

02

01 Pete Jones took over


TAQAs UK operations
in July 2013
02  AQA is in the process
T
of modernising its North
Sea operations

Make it

safe,
make it
work,
make it
grow
20 issue 04

I have discovered
were a very
face-to-face
company and we
work hard on
being inclusive.
Pete Jones, Managing
Director, UK, TAQA

big interview

Pete Jones, the new Managing Director of TAQAs UK arm,

talks about his philosophy and the challenges he faces
overseeing the companys North Sea operation

n the face of it, you

might not think running
an oil company and
paddling a canoe over
a waterfall have much
in common.
Pete Jones sees it differently. White
water kayaking is his way of, getting things
in perspective, he says. Its a powerful
analogue of risk and safety at work.
And when, like Mr Jones, you run an
oil company, managing risk and working
safely are paramount. Especially when the
energy company is TAQAs UK arm, and the
oil you are dealing with is in the North Sea.
Because anyone in the industry will tell
you: it is easily one of the most challenging
environments in the world. On July 1, Mr
Jones took over TAQAs Aberdeen operation
from Leo Koot, who now runs the Abu

01

Dhabi-based energy groups business in the

Kurdistan region of Iraq.
new challenge
Make it safe, make it work, make it grow.
Thats the challenge TAQAs set me, says
Mr Jones.
What that means specifically is not only
working to sustain existing oil reservoirs and
maximise their production, but also to
extend the life of the assets primarily the
platforms. The aim is to breathe new life
into them, and use them as hubs to establish
new sub-sea developments and identify new
exploration possibilities, says Mr Jones.
TAQA acquired its main North Sea assets
Cormorant Alpha, North Cormorant, Eider
and Tern in 2008, and three years later
began a long-term inspection, repair and
maintenance programme.
perspectives on the energy industry 21

01 TAQA is working to

extend the life of its
assets especially
the platforms
02  orking together is a
W
core value at TAQA
03  he planned cessation
T
of production date in
the Northern North
Sea is 2022

before taqa
It is a culture he admires. Before joining
TAQA, Mr Jones spent 16 years with the US
oil company Marathon in a number of roles
that took him from London to Houston;
Libya and Angola to Wyoming. I was
22 issue 04

Pete Jones, Managing Director, UK, TAQA

stopped being MD, Marathon UK, and

became regional vice president, Wyoming.

It was while that was under way that an

event occurred which underlined the scale
of Mr Jones challenge in the make it safe,
make it work, make it grow strategy.
safety incidents
In January and March of 2013, there were
two hydrocarbon releases within a leg of the
Cormorant Alpha platform. There was no
release into the environment but the
incident forced the platform to close while
repairs were carried out.
As well as handling 10,000 barrels per
day (bpd) of production from the South
Cormorant field, the Cormorant Alpha
platform is the conduit for the Brent
System Pipeline. This carries approximately
90,000 bpd of oil, or about 10% of the
UKs crude oil production, so what happened
was significant.
Since coming back online, TAQAs
production in the UK has hit a record
70,000 bpd. That Cormorant Alpha is back
up and running is a tribute to the expertise
and teamwork of our North Sea workforce,
says Mr Jones.
The way the business handled the issues
on Cormorant Alpha earned it a great deal of
respect across the industry. It was extremely
open, honest and professional. Within the
industry and beyond, it was recognised that
this is the way we need to work.
And when I started looking through the
companys values, I realised I could identify
with all of it. Stronger together I couldnt
have put it better. Thats the way you make
the whole bigger than the sum of its parts.
I saw an organisation that treats its
people as people, not as numbers. It is a very
personal culture. It was another of the key
things that made me want to be a part of it
all, he adds. It was also for the technical
discipline, and its peoples attitude. I have
discovered were a very face-to-face
company and we work hard on being
inclusive. You know if you present a good
opportunity, its going to be given
consideration and acted upon.

If we achieve that competitive edge,

it will allow us to look at other
acquisitions in the North Sea.

getting to know you

Since returning, he has spent a lot of time on
the move. The first thing was to get a sense
of the culture and people, he says. Getting
round the different business sectors, getting
offshore, seeing the people and the condition
of the assets. It takes a lot of discipline to
make Oil & Gas work, and what I have seen is
a very positive and motivated workforce.
In the Northern North Sea we have a

current cessation of production date of

2022, but I am confident that will push out
beyond 2025. We have established
ourselves as one of the most capable
operators in the North Sea, and in the next
year to 18 months we are looking to be the
leading operator in terms of safety record,
costs, drilling, says Mr Jones.
If we achieve that, we will have added
significant value to TAQA to sustain our
operation past 2025. If we achieve that
competitive edge, it will allow us to look at
other acquisitions in the North Sea.
03

01
02

managing director of Marathon in the UK for

three years, he says. It was a mid-sized
operation, fairly active, but very much
US-focused.
His last year with Marathon, before
joining TAQA, was spent running the Oil &
Gas business in Wyoming a job that gave
invaluable onshore experience. The
business covered the north west of the
state and a bit of Colorado, so I had to do a
lot of driving, he recalls. The fields
produced 35,000 to 40,000 barrels a
day . . . like our Canadian operation, but
smaller. A whole new set of challenges, so I
have a huge respect for what TAQA has
achieved there.
The posting also suited his family wife

Isla and children Rose, nine, Theo, six, and

Axel, three. It was a very outdoor lifestyle,
camping, skiing, bears but only from a
distance thankfully! he says.
But moving to his new job has not been a
wrench. More like coming home, as Mr
Jones is a Scot. He was born in the
Highlands, in Inverness, and raised on the
west coast in Fort William. After graduating
with a Masters degree in Operations
Research (Eng.) from the University of
Birmingham, he moved back North to do
research work for one of the oil industrys
gurus, Professor Alex Kemp, at the
University of Aberdeen.
As for the children, they have gone back
to the same school they left when Mr Jones
perspectives on the energy industry 23

people

Elham Al-Marzouqi has a passion for music after learning the piano
as a child. Now, TAQAs Legal Counsel plays the cello for the Dubai
Chamber Orchestra

tring sonatas and

Rachmaninoff recitals
embrace in a musical ritual
in Elham Al-Marzouqis
world. Ever since she was a
young girl, notes leapt off
the page and bombarded her senses in
a salvo of sound.
When Mrs Al-Marzouqi was just seven
years old, she started learning the piano.
More than 25 years later she is a respected
member of the Dubai Chamber Orchestra as
a cellist.
My mother, Shahnaz Hashimi, owned
and directed the Abu Dhabi Music Institute,
which was the first of its kind and was
recognised by the Ministry of Education in
Abu Dhabi back in the 1980s and 1990s,
recalls Mrs Al-Marzouqi, 35, an Emirati who
works at TAQAs headquarters in Abu Dhabi
as Legal Counsel. It was then when I started
learning the piano at a very young age.
After graduating from the International
School of Choueifat in Abu Dhabi, she
studied English literature and French
language and literature at the University of
Warwick in the UK. She later did a Master of
Arts in Legal Studies and then a Masters
degree in International Law at the University
of Bristol.
In 2004, Mrs Al-Marzouqi did a Legal
Practice Course at the University of the
West of England before embarking on a
two-year training contract at a law firm in
London. She qualified as an English solicitor
in 2006.
playing for pleasure
During this period, her involvement in music
was confined to the living room. I was
mainly playing for pleasure, says Mrs
Al-Marzouqi, whose husband, Anthony,
is a British national.
But in 2009 her musical passion took
a new direction when she decided to take
up the cello to fulfil a cherished ambition.

24 issue 04

I wanted to be part of an orchestra and

I loved the sound of the cello, she says.
I started taking cello lessons when I was
living in Bahrain while working for Norton
Rose and then later with Bahraini law firm
Hatim S. Zubi & Partners. String instruments
are not easy as you have to deal with issues
of intonation as well as musicality, she adds.
To turn her dream into reality, Mrs
Al-Marzouqi studied the cello under the
Russian violinist and cellist Elena Cherny
when she moved back to the UAE in
2010 before auditioning with the Dubai
Chamber Orchestra.
Elena told me about the orchestra and
I decided to try it out. I was apprehensive as
many musicians were of a professional level
but everyone is so down to earth and made
me feel very welcome, she says. I definitely
feel I have improved since playing with the

I started learning
the piano at a
very young age.
Elham Al-Marzouqi,
Legal Counsel, TAQA

orchestra. Counting beats in music has never

been so important. You realise that
intonation plays a huge part and you are
forced to listen out for the other players.
Concentration is vital, along with a
rigorous practice routine. During the year,
the Dubai Chamber Orchestra performs
three to four concerts, which are usually
recorded and shown on YouTube. The
orchestra mainly plays in Dubai and the
concerts are usually free, says Mrs
Al-Marzouqi. Its very enjoyable.
Inspiration is never far away. She admires
musicians such as the Russian classical
pianist Evgeny Kissin, who became an
international sensation as a child prodigy.
He is now widely acclaimed for his moving
interpretation of the works of the Romantic
repertoire, particularly Frdric Chopin,
Sergei Rachmaninoff and Franz Liszt.
I was fortunate enough to hear Evgeny
Kissin perform several times in Britain and

he is a prolific pianist. His rendition of

Rachmaninoffs Piano Concerto No 3 is
wonderful, she says.
influential cellists
Yo-Yo Ma, the famed American cellist born
in Paris to Chinese parents, and the great
Russian cellist Mstislav Rostropovich have
also influenced her. Mas performances have
enthralled concert audiences around the
world as well as in Hollywood. His distinctive
cello style has featured on the movie
soundtracks of Seven Years in Tibet,
Crouching Tiger, Hidden Dragon, Master
and Commander and Memoirs of a Geisha.
With respect to cellists, I admire Yo-Yo
Ma and was lucky enough to hear him
perform in Abu Dhabi, she says. The
late Rostropovich is another cellist who
is a heavyweight giant. Not only was he a
great performer, he also had the ability to
impart his knowledge to other cellists in
order to enhance their performance via
his masterclasses.
Naturally, classical composers have
shaped Mrs Al-Marzouqis musical outlook.
The European greats such as Rachmaninoff,
Bach, Beethoven and Mozart roll off her
tongue with the rhythmic melody of a
Brahms piano concerto in D minor.
In terms of composers, Rachmaninoff
is one of my favourites, she says. His
pieces, especially his piano concertos, are
beautiful but technically very difficult.
I was fortunate enough to play his pieces
when I studied the piano and Im planning
to master his Cello Sonata in G Minor for
the advanced certificate.
There are many other composers,
including Bach, who was a genius, Mozart
for his operas and symphonies, and
Beethoven for his symphonies, she adds.
With music being such an important part
of her life, it is remarkable that Mrs
Al-Marzouqi decided to spend her working
life in an office instead of a concert hall.
I played around with the idea of being
a professional musician, she says. But that
would entail intense study and training,
either via professional diplomas or going to
a music conservatory. I am already training
for advanced certificates in cello, which
will ultimately pave the way towards
the professional diplomas. But that is in
the future.
perspectives on the energy industry 25

oil & gas

As the shale gas trend gathers pace, David Cook,

Executive Officer and Head of Oil & Gas at TAQA,
looks at what it means for the energy industry

he shale gas revolution

is changing the energy
industry landscape. Major
drilling operations in
North America, and
particularly the US, have
triggered an increase in production
and a fall in domestic gas prices.
Already countries in Europe, Asia and
South America are closely watching the
US situation as they consider exploration
of their shale gas reserves.
China has the largest estimated
reserves of shale gas at 36.1 trillion cubic
metres (TCM), according to the Energy
Information Administration agency of the
US Department of Energy. The US comes
next at 24.4 TCM, followed by Argentina
(21.9 TCM), Mexico (19.3 TCM), South
Africa (13.7 TCM), Australia (11.2 TCM)
and Canada (11 TCM). As the shale gas
trend gathers pace, David Cook, Executive
Officer and Head of Oil & Gas at TAQA
(pictured), looks at what it means for the
energy industry. He also talks about the
role of gas in the energy mix and TAQAs
North American operations.
Can you describe how the shale gas
revolution has changed the energy
industry globally?

Global shale
gas basins
Top reserve holders
in trillion cubic metres
Assessed basins
With resource estimate
Without resource estimate

Revolution is the word that has been

used for the new development of shale
gas, as well as other unconventional
resources. Less than 20 years ago,
deepwater exploration and production
was considered unconventional. But one
of the amazing things about the energy
industry is that it tends to respond to
opportunities. We are constantly opening
up new technical and commercial
frontiers that allow us to meet new
challenges and demand. In the case of
shale gas and shale oil, technology has
allowed us to again step up to the
challenge. The timing of the shale gas
revolution has been crucial. It has
coincided with significant global events,
and this has made it a focus of
conversations for governments, investors,
environmentalists and consumers. Shale
gas has shifted North America towards
energy self-sufficiency. But I believe we

With the North American reserves of

shale gas apparently delivering such
cheap energy domestically, do you
see a two-tier market developing?
We are seeing some of the lowest gas
prices in North America on the back of
growing shale production. Yet in light of a
number of global events such as the
Fukushima nuclear disaster in Japan and
rising global demand, gas prices are high
in the Asian and European markets. As
advanced as we are, the world
is still a big place and it is impossible to
instantly transport a molecule of gas from
North America to Japan. There is no Star
Trek teleportation technology out there.

Canada
11
Poland
5.3
US
24.4

Algeria
6.5

Mexico
19.3
Brazil
6.4

Source: EIA based on Advanced Resources International Inc data, BP

Argentina

21.9

26 issue 04
20

are in the early cusp of the curve. While

we see huge numbers being used to
describe the shale resource, it remains
to be seen how these numbers will play
out against demand growth, economic
viability and the perceived or real
effects on the environment. On the
environmental point, its important to
stress that the industry tends to address
these issues as part of the development
of all new technologies. Its hydrocarbons
we produce, and its not the perfect
energy source, but we will strive to make
it as safe and clean as possible.

Libya
8.2

China
36.1

SA
13.7
Australia

11.2

perspectives on the energy industry 27

31
31
32

33

32

2
4
27 26
28
1
23 22
29
30
28 27
29 21
4
24
20
24 23

26

8
8

25

19

22 21
18

20

17
14
16 15 13
16
18

14

United States

1. Mowry (Wyoming)
Cretaceous
2. Gammon (Montana)
Late Cretaceous
3. Bakken (North Dakota,
Montana)
Upper Devonian
4. Excello/Mulky (Nebraska)
Pennsylvanian
5. New Albany (Illinois/
Indiana)
Devonian-Mississippian
6. Antrim (Michigan)
Late Devonian
7. Utica (New York)
Ordovician
8. Marcellus (New York,
Ohio, Pennsylvania, West
Virginia)
Devonian
9. Huron (Kentucky, Virginia,
West Virginia)
Devonian
10. Chattanooga (Alabama,
Kentucky, Tennessee)
Late Devonian

11. Floyd and Conasauga/

Neal (Alabama, Mississippi)
Late Mississippian
12. Fayetteville (Arkansas)
Mississippian
13. Caney and Woodford
(Oklahoma, Arkansas)
Mississippian/Late DevonianEarly Mississippian
14. Haynesville/Bossier
(Louisiana, Texas)
Late Jurassic
15. Woodford (Oklahoma)
Late Devonian-Early
Mississippian
16. Pearsall (Texas)
Cretaceous
17. Barnett (Texas)
Mississippian
18. Barnett and Woodford
(Texas)
Mississippian/Late DevonianEarly Mississippian
19. Palo Duro (Texas)
Lower Pennsylvanian

Sources: Ziff Energy Group; Natural Gas Resource Center

28 issue 04

20. Pierre (Colorado,

New Mexico)
Cretaceous
21. Lewis and Mancos
(Colorado, New Mexico)
Late Cretaceous/Cretaceous
22. Hovenweep (Colorado,
Utah)
Pennsylvanian
23. Cane Creek (Utah)
Pennsylvanian
24. McClure (California)
Miocene
25. Monterey (California)
Miocene
26. Mancos (Utah)
Cretaceous
27. Baxter (Colorado, Utah)
Late Cretaceous
28. Green River (Colorado,
Wyoming)
Eocene
29. Niobrara (Colorado)
Late Cretaceous

8
8

10

9
9

46
10
5

9
9

16

6
10

11 10
11

2
5

7
7

14
12
11 3 12

11

12
12

14
13

13
16

12

Geology of shale gas

basins in the US, Canada and17
Europe
19

9 8

15 13 12 5

Europe

3
6

25

30

33
2

1. Sweden
Alum Shales (Cambrian)
2. Denmark
Alum Shales (Cambrian)
3. Poland
Paleozoic Shales
4. North Germany
Mesozoic Shales, Lower
Saxony Basin
5. Central Germany
Namurian Shales
6. South Germany
Permocarboniferous Shales,
Bodensee-Trough
7. South England
Weald Basin
15
8. North England
Namurian Shales, West
Lancashire Sub-Basin

15

9. France
Mesozoic Shales,
Southeast Basin
10. Switzerland
Lower Jurassic Shales,
Fribourg, Vaud
11. Austria
Upper Jurassic Shales,
Vienna Basin
12. Hungary
Cenozoic Shales, Mako Trough
13. Bulgaria
Mesozoic Shales, NE Bulgaria
14. Ukraine
Lower Carboniferous Shales,
Dniepr-Donets Basin
15. Turkey
Silurian Shales, Dades Fm,
SE Turkey
16. Spain
Lower Jurassic Shales,
Basque-Cantabrian Basin

Source: GFZ German Research Centre for Geosciences

Canada

30. Horton Bluff (Nova

Scotia)
Early Mississippian
31. Horn River (Northeast
British Columbia)
Middle Devonian
32. Duvernay (West Central
Alberta)
Late Devonian
33. Colorado
(Saskatchewan)
Cretaceous

The development of shale gas, and the

infrastructure needed to process it and
then transport it, will take time. While this
price arbitrage will eventually narrow,
there will always be variations across the
global markets. So the question becomes
one of how rapidly the market price
differences will shift. The timing will
depend on the pace of further shale
development, and transportation options,
in North America and the rest of the world.
TAQA has a major presence in North
America. Can you tell us about the
companys strategy there and if you
hope to develop it on the back of the
shale gas boom?
There are several strong reasons for
TAQAs involvement in North America
independent of the shale revolution. We
have talked about having a diversified
portfolio, so we are not just involved in
one market or a single product. This
provides balance and protection as prices
and demands in various markets change.
Being in the North American market with

a long-term view is a great opportunity

although, right now with the low prices, it
is a challenging time to be there. We have
seen many companies suffer because of
the depressed market price of gas. This is
a market that requires a long-term
strategy and the stamina to stay in the
game. We achieve this through our
intelligent growth approach as well as
smart cost controls. Part of intelligent
growth for our North American business,
with three million net acres of land and
nearly 500 million barrels of oil
equivalent (mmboe) reserves, is applying
unconventional, horizontal multi-stage
frac technology. This is an essential
ingredient for the shale gas revolution.
But it is also worth remembering that
operating costs for traditional gas
producers are lower than for shale gas
operators. This will obviously have a
beneficial impact on our business in the
long term as North America moves into
the liquefied natural gas (LNG) export
market. To illustrate this, a number of
major projects are in the works to

develop LNG in Western Canada and ship

it across the Pacific to energy-thirsty
countries such as China, Japan and South
Korea. In the long term, this will help
rejuvenate the domestic gas market in
North America.
How does the North American
strategy fit in with TAQAs
global plan?
Aside from being involved in a prolific
market, our North American business
also works across tremendous technical
diversity. This helps us build our skills base,
for example in subsurface expertise and
new drilling technologies. Connecting
these skills across the organisation helps
us succeed in other operations around the
world. Obviously, we would not use North
America just as a training ground; we are
there because its a smart piece of
business. But our North American
operation has let us tap into vital skills. For
example, our Canadian experience has
been critical to our access and appraisal in
the Kurdistan region of Iraq.
perspectives on the energy industry 29

these contracts can run for 25 years or

more, so it is all about relationships, about
working in partnership.

Khaled Bader Al Sayari,

TAQAs point man
direction to our countrys political direction;
to match that relationship, says Mr Al Sayari.
And while we were talking, there was still
the sound of gunfire from the streets.

strategic relations

When TAQA needs a point

man to help clinch a deal,
Khaled Bader Al Sayari is the
man it calls. The only certainty
about his job is that when the
opportunities arise, they are
never niche

30 issue 04

t is not TAQA policy for employees

to turn up for meetings when there
is still gunfire on the streets or to
have rifles pointed at them by
nervous soldiers when they stop
to buy petrol.
But when yours are the first boots on the
ground, sometimes it cant be helped.
Khaled Bader Al Sayaris role as Executive
Vice President of Strategic Relationships
and Public Affairs means he walks point
for TAQA.
Not the dealmaker, but the man who
makes the deals possible. And because, in

the global energy industry, opportunities can

occur anywhere in the world, he has to move
fast to places where the environment is not
always stable.
We are right at the cutting edge, says
Mr Al Sayari. Everything we do is about
establishing relationships and then building
on them.
To underline that point he was in Tripoli
one month after the Libyan revolution in
2011. The UAE Government wanted to
show support to the new Libyan
administration and Tripoli wanted to talk
energy. We were there to add economic

business and diplomacy

The only certainty about his job is that when
the opportunities arise, they are never niche,
and the players are always big. Which is why,
when Mr Al Sayari goes forth, his brief is not
just to talk business, but also diplomacy.
Most of TAQAs business is global
and that means that most of the time
Strategic Relationships and Public Affairs is
dealing with governments and entities
representing governments.
Our existing portfolios in the countries
where we are already established nearly all
involve major infrastructure projects, so
they are of particular interest to our host
governments, says Mr Al Sayari. So we
keep open contacts at all the levels, between
the host government and TAQA and with the
Government of the UAE. We make sure
everyone knows what everyone else is
thinking and what they are doing.
These relationships are for the full
duration of the contracts, and it is only by
maintaining them, by keeping the host
government close, that we can assure
them that we are there to stay, and not
just to take the money and run. Some of

dedicated department
The job of maintaining this network began
with the Abu Dhabi Water & Electricity
Authoritys Special Projects (Technical)
department. Then in 2011, as TAQA
embarked on a new strategy, it was decided
a new, dedicated department was necessary
to manage the existing portfolio and to work
hand in hand with the Ministry of Foreign
Affairs to seek out new opportunities.
Today, we go where our UAE passport
can open investment doors for us, says
Mr Al Sayari. From that relationship with
the UAE Government there are many
opportunities arising. The role is crucial. We
do our homework before we go anywhere.
We evaluate a country, its tax regime,
political stability and relations with the UAE.
Country risk is one of the most important
factors in our investment criteria.
This work is then fed back into strategy
session meetings at the top in TAQA, where
the future direction of the company is
thrashed out.
If the board sees potential, then the next
step is, we visit. But first of all we start with
a protocol briefing, because it can be very
embarrassing if you make a gaffe in your
first meeting, says Mr Al Sayari. We visit
the ministers of the foreign government,
then all the local companies that represent
the sectors we are in.
But even if we see economic value and it
fits our overall strategy, and we get UAE and
foreign government support, its not over.

We arrange further meetings between

our teams and those of the other country,
always digging deeper. Last year, we visited
15 countries, covering Asia, Europe, Africa
and North America, always looking for the
next opportunity, he adds.
another level
This job has certainly proved an opportunity
for Mr Al Sayari, a BSc graduate from the
UAE University, who never dreamed he
would one day add government and
boardroom-level relations to his technical
skills. I started out as an electrical engineer
and now my job is more like a diplomat, he
says. But that is working for TAQA you
are always being taken to another level.
The downside is that his wife and three
daughters do not see enough of him. Youre
not flying again? Thats what my oldest
daughter, Shaikha, is always saying, says Mr
Al Sayari. She is six and, like the other two,
doesnt see enough of me. And I certainly
miss them. But it means they get lots of
presents, lots of chocolate. They like that.
Currently, the Ministry of Foreign Affairs
believes there is great potential in Africa.
In Kenya, just after a terrorist attack, people
were nervous, Mr Al Sayari recalls. There
were soldiers everywhere, and once when
we stopped at a petrol station for our driver
to fill the car, we must have attracted
suspicion, because the next thing we knew
there were guns being pointed at us.
But it is what we must do if we are to
continue to keep opening the doors for
TAQA. It is all about opening new doors with
new countries, working hard to get the trust
of the new governments.

Everything we do is about
establishing relationships and
then building on them.

Khaled Bader Al Sayari, Executive Vice President of

Strategic Relationships and Public Affairs, TAQA

perspectives on the energy industry 31

community

Education is not a luxury, it is a birthright. But what

happens when your child is deaf? In Ghana, TAQA
has helped financially support the Sekondi School for
the Deaf. And put a few smiles on the faces of some
extraordinary pupils

h
 ey sit around wooden
desks watching teacher
Joanna Affels every
gesture. Children of all
ages smile when she pushes
two fingers of her right
hand on to the palm of her
left one. Standing up the girl is
standing up, Ms Affel says as she
turns her words into hand signs.
At the Sekondi School for the Deaf,
silence is interspersed with laughter. They
are happy to be in school, says Ms Affel.
You see them smiling and laughing when
I enter the room. They want to be here
they want to learn.
Just 10 minutes drive from TAQAs
Takoradi 2 Power Plant on the Southwest
coast of Ghana, the school nestles down
a leafy side road, protected from the
outside world by rows of palm and
evergreen trees.
Inside the gates, brightly coloured sign
language is daubed on the walls to remind
the students that help is never far away.
Its difficult for deaf children to get basic
education, says Benjamin Abeku ArkorfulOtoo, Head of Human Resources at TAQAs
Ghana operation.
32 issue 04

Benjamin Abeku ArkorfulOtoo, Head of Human

Resources, TAQA, Ghana

They think they will never amount

to anything and this issue is compounded
by poverty. That is why TAQA puts in the
resources to help these children to do
well, he adds, pointing out that the
company has helped financially support
the Sekondi School for the past five years.
But while dollars and cents are
important, the main currency here is love
and compassion. Making the pupils feel
they have a future and a place in society is
just as crucial as the school curriculum.
These children need a lot of care a lot
of love, so they can feel accepted, says
Mr Arkorful-Otoo.
If they feel accepted, they can start
to lead a normal life. If the teachers
cannot show that care and love, the
children can never feel accepted. I think
the teachers are doing very well, as when
you go to the school, you can always see
the children smiling.
At the last count, there were 293
pupils aged between four and 16 with
a teaching staff of 25. On average, there
are around 15 to 20 students to each
class with the focus being on traditional
subjects such as arithmetic and English.
Before children are admitted for the
perspectives on the energy industry 33

01

year, we assess their hearing levels and

we put them on a pre-school programme,
says Francis Harry Dzadze, headmaster at
Sekondi School. We teach them the basic
things they will need. For instance, since
they cannot pronounce their ABCs orally,
we teach them sign language. We use
our fingers.
But the fact that the pupils are deaf
should not act as a barrier to education.
Capturing their imaginations by helping
them reach their potential appears
engrained in the teaching philosophy at
the school. Obviously, there are
challenges, as Ms Affel is quick to explain.
When I first started at Sekondi, there
were different priorities to help educate
the children. Making sure they understood
the lessons was vital, she says. But after
three weeks, I realised the students were
enjoying the experience and making
progress. I was so happy.
Happiness, harmony and an
overwhelming sense of achievement
are evident at the school.

TAQA is not just playing a key role in

powering Ghanas booming economy. It is
also helping to educate the next generation
with a scholarship programme.
This is all part of our commitment to the
local community, says Thomas Donkor, the
Administration Services Manager at TAQAs
Takoradi 2 power plant.
For more than a decade now, the
scholarship programme has helped students
fulfil their dreams. Here, Mr Donkor talks
about the early days, the selection process
and future plans for the scholarship scheme.
when did the programme start?
It was started back in 2000 when the plant
was run by the Swiss company ABB and
the US-based CMS Energy. When TAQA
took over the plant, we felt the scholarship
programme was a way of helping the
community in which we operate. Education
is one of the building blocks of society.
A well-educated workforce will help drive
34 issue 04

02

big picture

03

You can see that the children are

happy and content here, adds Ms
Affel as she looks out across the
playground at the end of another day.
We are here to give them hope and
a better future.

01  pupil signing at Sekondi School

A

growth in the country. As the largest UAE

company in Ghana, TAQA is committed to
helping future generations here.

Shama District. The scheme is for poor but

brilliant students. We then conduct a series
of interviews to select the right candidates.
The interviews involve representatives from
the Ghana Education Authority.

02 A happy atmosphere prevails

03  ign language is part of daily life
S

how many pupils were involved?

There were just 10 students when the
programme was launched. Since then it has
grown considerably. By 2007, more than
2,000 pupils had been involved in the
scheme. We have three categories which are
Junior High School, Senior High School, and
Polytechnics or Universities. Students have
to submit their grades and an application
letter before being accepted for the
interview stage. We take care of a third of
the costs, which run to US$140 per student.
This year around 300 pupils, aged between
six and 24, will take part in the programme.

what happens after the candidates

have been selected?
We work across a broad range of age
groups, so this depends on individual
students. For the younger candidates,
this means they will receive financial
assistance to buy books and items
of stationery. For the older students,
the programme will help them find jobs
as teachers, chemists and chartered
accountants after finishing their
university studies.

can you explain how the scholarship

programme works?
We advertise the programme on radio for
qualified students to apply from the nearby

what is the programmes future?

This scholarship scheme will continue to
help support brilliant students to achieve
their educational goals.

The story is in the panels after

TAQA invested in Chromasun,
a US-based company, which
develops thermal airconditioning technology.
Chromasun Micro-Concentrator
solar panels have been installed
at the Abu Dhabi Transmission
& Despatch Company for a trial
period. The dust-resistant
panels, which are ideal for the
Middle Easts weather
conditions, will provide clean,
renewable solar energy to the
buildings air-conditioning units.

One click
click
away

Stay connected with TAQA

T Website
taqaglobal.com
Twitter
@taqaglobal
Vimeo
vimeo.com/channels/taqa
Flickr
ickr.com/taqaglobal
flickr.com/taqaglobal
Linkedin
linkedin.com/company/taqa