In the name of GOD

The Most Gracious, The Most Merciful

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 His Highness
Sheikh Hamad Bin Khalifa Al-Thani
The Emir of the State of Qatar

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 His Highness
Sheikh Tamim Bin Hamad Al-Thani
The Heir Apparent

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Contents

Qatar Petroleum 8

Board of Directors 10

Message from the Chairman 12

2011 Highlights 14

Key Consolidated Financial Information 16

17 Administration
Human Resources Services
Corporate Training Services
Medical Services
General Services
Qatarization

HSE Regulations & Enforcement Directorate 19

Information and Communication Technology 20

Technical Directorate 22

Crude Oil and Natural Gas 24

Dukhan Operations
Offshore Operations
EPSA/DPSA
North Field
Al-Khaleej Gas Project (AKG)
Barzan Gas Project
Drilling Department
Halul Island

LNG 34
Qatargas
RasGas

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Contents

Pipelines 38
Dolphin Project

NGL and Local Gas 39

QP Gas Operations

Refining 41
QP Refinery
Laffan Refinery
Oryx GTL
Pearl GTL

45 Petrochemical Industries
Qatar Fertiliser Company
Qatar Melamine Company
Qatar Petrochemical Company Ltd.
Qatar Fuel Additives Company
Qatar Vinyl Company
Qatar Chemical Company
Qatar Chemical Company II Ltd.
Ras Laffan Olefins Company
Qatofin Company Limited
Seef Limited

Industrial Cities 53
Mesaieed Industrial City
Ras Laffan Industrial City

59 Other Industries and Supporting Services

Gulf Helicopters Company
Qatar Steel Company (QSC)
Qatar Plastic Products Company (QPPC)
Qatar Aluminium (Qatalum)
Qatar Petroleum International (QPI)
Gulf Drilling International (GDI)

Financial Statements 67

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 Annual
Report Qatar Petroleum

Committed to Excellence

Q atar Petroleum (QP), formerly Qatar General

Petroleum Corporation, is a state-owned
public corporation established by Emiri Decree
QP’s strategy of conducting hydrocarbon
exploration and development are through
Exploration and Production Sharing Agreements
No 10 in 1974. It is responsible for all phases of (EPSA) and Development and Production Sharing
the oil and gas industry in Qatar. The principal Agreements (DPSA) concluded with major
activities of Qatar Petroleum, its subsidiaries and international oil and gas companies.
joint ventures are the exploration, production
and sale of crude oil, natural gas and gas The operations and activities of Qatar Petroleum
liquids and refined products, production and are conducted at various onshore locations,
sale of petrochemicals, fuel additives, fertilisers, including Doha, Dukhan and the Mesaieed and
liquefied natural gas (LNG), steel, aluminium, Ras Laffan Industrial Cities, as well as offshore
chartering of helicopters, underwriting insurance areas, including Halul Island, offshore production
and other services. The principal place of stations, drilling platforms and the North Field.
business of QP is the State of Qatar.
The following are QP’s subsidiaries, joint ventures and other investments:
A. Subsidiaries Country of Effective Percentage
Registration Holding in 2011
Al Shaheen Holding Q.S.C. Qatar 100.0%
Amwaj Catering Services Company Limited Qatar 100.0%
Gulf International Services Q.S.C. Qatar 30.0%
Industries Qatar Q.S.C. Qatar 70.0%
Qatar Holding Intermediate Industries Company Limited Qatar 100.0%
Qatar Petroleum International Limited Qatar 100.0%
Qatar Petroleum Qatar Gas (3) Limited Qatar 100.0%
Qatar Petroleum Qatar Gas (4) Company Limited Qatar 100.0%
Qatar Petroleum RasGas (3) Limited Qatar 100.0%

B. Joint Ventures
Astad Engineering Consulting and Project Management Q.S.C. Qatar 50.0%
(Previously Qatar Engineering Consultancy Company Limited)
Barzan Gas Company Limited Qatar 93.0%
Gasal Q.S.C. Qatar 30.5%
Laffan Refinery Company Limited Qatar 51.0%
Oryx GTL Limited Qatar 51.0%
Qatar Aluminium Company Limited Qatar 50.0%
Qatar Chemical Company Ltd. Q.S.C. Qatar 51.0%
Qatar Chemical Company Limited (II) Qatar 51.0%
Qatar Gas Operating Company Limited Qatar 70.0%
Qatar Liquefied Gas Company Limited (II) Q.S.C. Qatar 67.5%
Qatar Liquefied Gas Company Limited Q.S.C. Qatar 65.0%
Qatar Vinyl Company Limited Q.S.C. Qatar 73.0%
Qatargas Upstream Joint Venture (Unincorporated) Qatar 65.0%
Qatex Limited Qatar 51.0%
Qatofin Company Limited Q.S.C. Qatar 35.6%
Ras Laffan Liquefied Natural Gas Company Limited Qatar 63.0%
Ras Laffan Liquefied Natural Gas Company Limited (II) Qatar 67.1%
Ras Laffan Olefins Company Limited Q.S.C. Qatar 44.5%
RasGas Company Limited Qatar 70.0%

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C. Joint Ventures and Subsidiaries of QP Subsidiaries Country of Effective Percentage

Registration Holding in 2011
Subsidiaries of QP Subsidiaries
Al Koot Insurance and Reinsurance Company SAQ Qatar 30.0%
Al Shaheen Energy Services Limited UK 100.0%
Al Shaheen Energy Services L.L.C. USA 100.0%
Gulf Helicopters Company Q.S.C. Qatar 30.0%
Qatar Steel Company Limited Qatar 70.0%
Qatar Petroleum LNG Services (QG II) Limited Qatar 100.0%
Qatar Petroleum Gas Trading (QG II) Limited Qatar 100.0%
Qatar Terminal Company Limited Qatar 100.0%
Joint Ventures of QP Subsidiaries
Al Shaheen GE Services Company Qatar 50.0%
Al Shaheen Weatherford Q.S.C. (formerly Al Shaheen Well Services) Qatar 50.0%
Gulf Drilling International Limited Qatar 21.0%
Qatar Fertiliser Company SAQ Limited Qatar 52.5%
Qatar Fuel Additives Company Limited Qatar 35.0%
Qatar Liquefied Gas Company Limited (3) Qatar 68.5%
Qatar Liquefied Gas Company Limited (4) Qatar 70.0%
Qatar Petrochemical Company Limited Qatar 56.0%
Ras Laffan Liquefied Natural Gas Company Limited (3) Qatar 70.0%
Seef Limited Qatar 80.0%

D. Other Investments
Arab Maritime Petroleum Transport company Kuwait 14.8%
Arab Petroleum Investment Corporation Saudi Arabia 10.0%
Arab Petroleum Pipelines Company Egypt 5.0%
Arab Petroleum Services Company Libya 10.0%
Arab Shipbuilding and Repair Yard Company Bahrain 18.8%
Gulf United Steel Holding Company – Bahrain Bahrain 17.5%
Messaied Power Company – Qatar Qatar 20.0%
Nakilat Agency Company – Qatar Qatar 5.0%
Qatar Navigation QSC (Milaha) – Qatar Qatar 9.4%
Qatar Electricity & Water Company Qatar 11.4%
Qatar Fuel QSC (Woqod) - Qatar Qatar 40.0%
Qatar Gas Transportation Company Ltd. (Nakilat) - Qatar Qatar 10.0%
Qatar Metals Coating Company – Qatar Qatar 35.0%
QPI & Shell Petrochemicals (Singapore) PTE Limited (“QSPS”) Singapore 49.0%
Ras Girtas Power Company – Qatar Qatar 15.0%
Ras Laffan Power Company - Qatar Qatar 10.0%
South Steel Company - Saudi Arabia Saudi Arabia 20.8%
Sphere Minerals Limited – Australia Australia 5.4%
Taoudenni Blocks Mauritania Mauritania 20.0%
United Helicharters Private Limited – India India 10.8%
Others *

* These represent various investments mainly in the Qatar Exchange and the effective QP interest is less than 5%.

9
 Annual
Report QP Board of Directors

Chairman and Managing Director

HE Dr. Mohammed bin Saleh Al-Sada

Minister of Energy and Industry

Deputy Chairman Member

Hamad Rashid Al-Mohannadi Fahad Hamad Al-Mohannadi

Managing Director General Manager
RasGas Qatar Electricity & Water Company (QEWC)

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Member Member

Nasser Khalil Al-Jaidah Saad Sherida Al-Kaabi

CEO Director, Oil & Gas Ventures
Qatar Petroleum International (QPI) Qatar Petroleum

Member Member

Khalifa Abdulla Al-Sowaidi Essa Hilal Al-Kuwari

Managing Director President
Qatar Fertiliser Company (QAFCO) Qatar General Electricity & Water Corporation
(Kahramaa)

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Message from the Chairman

Q atar continued in 2011 to chart its path of enviable economic growth, unaffected
by post 2008 financial crisis and the weaknesses in major developed economies This
is reflected in Qatar’s major infrastructure and industrial development plans as envisioned
by His Highness Sheikh Hamad Bin Khalifa Al-Thani, The Emir, which includes construction of
mega projects in the transportation sector, development of new airport and seaport, rapid
expansion of health and education sectors, besides plans for construction of new facilities
for the FIFA World Cup in 2022.

These planned developments require additional power and desalinated water supplies.
Hence it has substantially increased the projected demand for energy in the State over the
next decade.

In line with its responsibility toward the national economy and to meet its customers’ needs
and contractual obligations, Qatar Petroleum has responded by developing robust plans
commensurate with these economic and political challenges to ensure the availability
of clean fuel and hydrocarbon products required by the various economic sectors in the
State of Qatar.

To meet the country’s future needs for the clean fuel for its power and water sectors and
to provide feedstock to the local petrochemical and refining industries, Qatar Petroleum
has commenced the construction of the strategic multi-faceted Barzan gas project. This
project, which is expected to be fully operational by 2014, is an essential building block for
Qatar›s future and will bring extensive benefits to many local industries.

In line with the development strategy of Qatar Petroleum, Ras Girtas Power Company
inaugurated Qatar’s largest power plant at Ras Laffan Industrial City. This plant has a design
capacity of 2730 MW of electric power and 63 million gallons of desalinated water daily.
With this capacity addition, Qatar’s power and drinking water capacities have risen to 9000
MW and 325 million gallons a day respectively.

Another development that symbolizes the commitment and ability of Qatar Petroleum
to live up to its responsibility towards national development is the plan to increase the
production of refined products through constructing the second Laffan condensate
refinery. The refinery will meet the projected demand for various petroleum products
required to sustain the high growth rate of the Qatar’s economy. The second Laffan
condensate refinery is at the engineering stage and is expected to be commissioned by
2016.

Qatar’s position as the world’s largest LNG produces was reinforced with the start-up of
the Qatargas seventh and final mega train, which has a production capacity of 7.8 million

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tons per annum. Being a main player LNG producer, we are attentive to our customers’
needs by maintaining supply and responding to any unforeseen demand from current or
prospective customers.

The industrial sector in Qatar celebrated another major milestone in 2011 with the
inauguration of world’s largest gas-to-liquids (GTL) plant, Pearl GTL, at Ras Laffan Industrial
City. A joint venture of Qatar Petroleum and Shell, Pearl GTL represents the world’s first
realization of GTL technology applied on a world-scale basis with the capacity to produce
140,000 barrels per day of GTL products.

The industrial diversification of the Qatar economy is further underpinned by the

inauguration of another addition to the petrochemical industry with the completion of the
QAFCO-5 project, which is the world’s largest single-site producer of ammonia and urea.

Besides being recognized as one of the leading oil and gas companies in the world, Qatar
Petroleum has proved its versatility by organizing world scale events. During 2011, Qatar
Petroleum organized the 20th world petroleum congress, a major industry event held for
the first time ever in the Middle East region. The five-day event was attended by a record
number of participants, consisting of top government officials, the senior management of oil
and gas companies and industry professionals from all over the world.

Similarly, Qatar Petroleum organized the first summit of the Gas Exporting Countries Forum
(GECF), an international organization whose members account for up to 70% of the world’s
proven gas reserves.

Through this journey of success and achievements, Qatar Petroleum has never
compromised the environment, safety and health of our society. Continuous and close
monitoring and control of emissions and pollution was one of the key factors of our success
as a major contributor to our economic and social development.

Achieving those goals would have never been possible without the continuous and faithful
efforts of our employees, partners and contractors, who are working hard to make Qatar
Petroleum a responsible and truly international player in the oil and gas Industry.

Surely there are upcoming challenges, but we are quite confident and optimistic about the
bright future of Qatar Petroleum as a key national organization that will continue to work
for the prosperity of our nation

Dr. Mohammed bin Saleh Al-Sada

Minister of Energy and Industry
Qatar Petroleum Chairman & Managing Director

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2011 Highlights
• 6th January
Qatar Petroleum and ExxonMobil signed
a Joint Venture Agreement (JVA) and a
Development and Fiscal Agreement (DFA) for
the Barzan Gas Project, which will supply about
1.4 billion cubic feet of gas per day, mainly to
power utilities and industrial plants.
• 18th January
His Highness Sheikh Hamad bin Khalifa
Al-Thani, Emir of the State of Qatar,
appointed His Excellency Dr. Mohammed
bin Saleh Al-Sada as the new Minister of
Energy and Industry, replacing His Excellency
Abdullah bin Hamad Al-Attiyah, who was
named Deputy Premier and Chairman of the
Emiri Diwan.
• 8th February
Qatargas became the world’s largest LNG
producer with the start-up in Ras Laffan of its
seventh and final train, which has a production
capacity of 7.8 million tons per annum. Train
7 forms part of Qatargas 4, which is jointly
owned by Qatar Petroleum (70%) and Shell
(30%).
• 7th April
His Excellency Sheikh Hamad bin Jassim bin
Jabor al Thani, Prime Minister of the State of
Qatar, inaugurated the Golden Pass LNG
Terminal, which is a joint venture between
Qatar Petroleum and ExxonMobil and
ConocoPhillips and allows Qatar a steady
access to the American gas market.
• 8th May
Qatar Petroleum signed an Exploration and
Production Sharing Agreement (EPSA) for
Offshore Block-A (pre-Khuff) with JX Nippon Oil
& Gas Exploration (Qatar) Ltd (NOEX) of Japan,
as the contractor and operator. Block-A
covers an area of 6,173 sq km and is located
northeast of Ras Laffan Industrial City.
• 29th May
Qatar Petroleum signed an agreement with
CNOOC Middle East and Total, under which
Total acquired a 25% interest in Qatar’s Block
BC (pre-Khuff) exploration license. CNOOC
Middle East (Qatar) Ltd. will continue to be the
operator of the block with a 75% interest.
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2011 Highlights

• 31st May • 15th November

His Highness Sheikh Hamad bin Khalifa
Al-Thani, Emir of the State of Qatar,
inaugurated the QR14- billion plant of Ras
Girtas Power Company at Ras Laffan Industrial
City. The plant has a design capacity of
2730 MW of electric power and 63 MIGD of
potable water.
• 10th October
His Highness Sheikh Tamim bin Hamad Al-Thani,
Heir Apparent of the State of Qatar, laid the
foundation stone for the New Doha Port at
Mesaieed Industrial City. The first phase of the
project is scheduled to be completed in 2016.
• 1st November
His Highness Sheikh Tamim bin Hamad Al-Thani,
Heir Apparent of the State of Qatar, presided
over the foundation stone laying ceremony
for the Barzan Gas Project, a joint venture
between Qatar Petroleum and ExxonMobil
which is expected to produce its first gas by
2014.
His Highness Sheikh Hamad bin Khalifa Al-Thani,
Emir of the State of Qatar, opened the First Gas
Summit of the Gas Exporting Countries Forum
(GECF), an international organization whose
members account for up to 70% of the world’s
proven gas reserves.
• 22nd November
His Highness Sheikh Hamad bin Khalifa Al-Thani,
Emir of the State of Qatar, inaugurated the
Pearl GTL in Ras Laffan Industrial City. A joint
venture of Qatar Petroleum and Shell, Pearl
GTL will have the capacity to produce 140,000
barrels per day of gas-to-liquids products
when it becomes fully operational in 2012.
• 20th December
His Highness Sheikh Tamim bin Hamad
Al-Thani, Heir Apparent of the State of Qatar,
inaugurated the Qafco-5 project, which
further boosted Qatar’s position as the world’s
largest single-site producer of ammonia and
urea.

5 December
His Highness Sheikh Hamad
bin Khalifa Al-Thani,
Emir of the State of Qatar,
delivered the inaugural address
at the 20th World Petroleum
Congress (WPC), a major industry
event hosted by Qatar Petroleum
and held for the first time ever
in the Middle East region. The
five-day event was attended by
a record number of participants,
consisting of top government
officials, the senior management of
oil & gas companies, and industry
professionals from all over the
15 world.
 Annual
Report

Key Consolidated
Financial Information

289,179

168,488 188,015
117,430 118,141

117,348
55 800
55,800 54 567
54,567 88 862
88,862

46,328 40,864

35,049 58,560 58,517

35,207

32,854 282,308
47,
7,037
037 246
6,034 367,551
36,791 35,350 308,897

24,455 188,33
,336
6

Sales Revenue 289

89,1
179 188,015 118,141 168,488 117,430
Net Income 88,8
862 54,567 35,207 55,800 35,049
Net Cash Flow from Operations 117,348
117 58,517 40,864 58,560 46,328
Capital Expenditures 32,854 2 455
24, 35,350 36,791 47,037
Total assets 367,55
51 308
8,897 282,308 246,034 188,336

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Administration
T he Administration Directorate strives to provide
quality service to support QP’s operations in
the areas of: Human Resources, Qatarization,
Corporate Training, Medical Services, and
General Services. The directorate’s customers
include QP employees and departments;
QP-affiliated companies; and community
residents in remote locations.
Human Resources Department
The Human Resources Department continued
to place a high priority on valuing the
organization’s people and providing them with
a performance-driven culture excel. A new QP
Award System was introduced, which provides
three levels of award to recognize excellent
performance.
The medium- to long-term manpower planning
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Annual
Report
system was enhanced by directing the supply
of Qatari nationals to match the demand.
Impetus to manpower resourcing was provided
by exploring new markets in Eastern Europe,
faster interviewing using video conferencing,
pre-employment verification checks, and a
more stringent review of agencies’ performance.
Using the technology lever, a number of HR
processes were made available online, including
travel management, SAP time-based alerts,
passages payment, health card payment, family
passages verification, and final settlement. The
Electronic Document Management System
(EDMS) and Enterprise Content Management
(ECM) software were also implemented.
Qatari nationals accounted for 21% of
permanent positions in the workforce by the
end of 2011. The “Enhanced Approach to the
Development of Nationals” is a critical, ongoing
project involving a review of all aspects of the
development of Qatari nationals, right from
secondary school to sponsored higher education
and through to development and Qatarization.
Corporate Training Department
The Corporate Training Department continued
meeting the organization’s professional training
needs through short technical and management
courses in Doha and overseas. More than 60%
of these courses were held in Qatar. To support
QP’s Qatarization objectives, the development
of Qatari nationals is being accorded high
priority, as part of which a developee attends
an average of more than four courses a year as
compared to only one course on average per
employee.
The department enrolled 373 new university and
academic study students and continued with its
long-term vocational programs to prepare high
school graduates to meet the entry requirements
of skilled national workforce into the energy and
industry sector. While 291 new trainees were
enrolled in vocational programs, 524 trainees
under the Technician Preparation Program
(TPP) took up customized Technical and Further
Education (TAFE) certification programs at
various ‘offsite’ and ‘workplace learning’ phases
of the program cycle.
Additionally, employee English training was
adjusted in response to departmental requests
 Annual
Report
for greater flexibility and the alignment between
English competency and operational roles.
The department continued to focus on
developing its e-learning platform as well as
its alliance with ictQATAR. More than 4,500
candidates took the ‘Permit to Work’ session
electronically, while 2,589 courses were
completed via the ictQATAR portal.
Medical Services Department
The Medical Services Department continued
to provide primary care, occupational health,
and support medical services for over 185,000
beneficiaries served by QP’s healthcare clinics
in Doha, Ras Laffan, Mesaieed, Dukhan and
offshore. Keeping in view the needs of patients,
the provision of an additional Nakilat Clinic in
Ras Laffan and services such as the debit/credit
card payment facility for customers at the point
of sale were introduced.
The department has established preventive
measures for the following: chronic disease
management - diabetes, asthma, hypertension,
and dyslipidemia; employee fitness programs
- pre-employment, offshore and medical
surveillance; and Wellness Clinics - Well Baby,
Well Woman and Well Man. The department’s
goal to ensure that all healthcare professionals
are competent to practice to the highest clinical
standards was successfully achieved through
licensing and training.
The department actively participated in national
and international health events, and it also
introduced employee health promotion and
awareness programs, including those on heat
stress prevention, noise-induced hearing loss,
cancer, kidney disease, HIV and tuberculosis.
Enhanced social responsibility through projects
and promotions was also undertaken, in
particular the Disposal of Unwanted Medicines
Project (DUMP) which was successfully initiated
in Dukhan to safely dispose of unwanted
medication within the community.
General Services Department
The General Services Department is mandated
to manage and control the delivery of general
services to all areas under QP in Doha. These
include housing and facilities (office) services
and maintenance, transport services, recreation
services, and the retention of non-technical
records for all locations.
In 2011, a large number of offices had to be
moved within Doha due to the expansion/re-
organization of many directorates/departments,
and the demand for additional offices was also
met.
The Client Visit Program is one of the
department’s proactive initiatives, which was
successfully implemented from April 2011 to
October 2011. Visits were conducted to all QP
departments in Doha and their feedback was
documented.
Energy & Industry Sector Qatarization Unit
The Qatarization Unit of the energy and industry
sector provided counsel, advice and direction
to the sector companies, and to a number of
organizations outside of the sector, regarding
strategic matters related to Qatarization.
Formal meetings with respective companies
covered relevant topics to review their strategic
Qatarization plans, strategic manpower issues,
training strategy, company Qatarization websites,
and corporate social responsibility (CSR) initiatives
in line with the Qatar National Vision 2030 and
the current National Development Strategy.
The unit continued building relationships with
its partners, namely educational institutions
and government ministries, to further improve
Qatarization in the sector.
In May 2011, the Annual Qatarization Review
Meeting, chaired by His Excellency the Minister
of Energy & Industry, was held, during which
which an overview of Qatarization in the sector
was presented.
18

HSE Regulations & Enforcement
Directorate (DG)
T he HSE Regulations & Enforcement Directorate
(DG) was established to independently
analyze Occupational Health, Safety,
Environment & Sustainable Development
(OHSESD) activities while controlling risks via
robust regulations and supervision of the
petroleum sector.
Regulatory and legal activities were
focused on the following:
• Regulated the petroleum sector via the
issuance of a legal register which guided all
petroleum operators as to their legal duties in
the State of Qatar;
• Developed an “HSE Legal Framework for the
Oil & Gas Sector,” which was then released
to stakeholders following the approval of His
Excellency the Minister of Energy and Industry;
• Conducted a review and analysis of
protocols, treaties, and conventions based on
current status information and criteria;
• Drafted a proposed law on petroleum
facilities, including a memorandum of
understanding (MoU) with Qatar University on
research and development on the peaceful
use of nuclear energy.
Safety and health activities were focused
on the following:
• Implemented robust OHSE supervision of the
petroleum sector, including 91 supervision
visits, which led to a strong and enhanced
OHSE performance by the sector;
• Prepared an OHSE risk and gap analysis
report related to operators, developed
safety framework for regulating OHSE risks
on the oil and gas sector, emphasizing
the management of major hazards as the
cornerstone, and risk-based supervision plans;
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Annual
Report
• Inspected 47 health centres within the
concession areas for licensing protocols in
order to assure compliance with the legal/
regulations requirements.
Sustainable development and engagement
activities were focused on the following:
• Conducted workshops related to HSE and
sustainable development and published the
Sustainable Development Industry (SDI) Report
2010 in this regard (see www.hse-reg-dg.com);
• Launched the SDI
reporting system/
framework which
allowed petroleum
operators to report
about their safety,
occupational
health,
environment
and sustainable
development
performance;
• Carried out strong
engagement with
our fellow national
bodies (Ministry
of Environment,
Ministry of Labour, and the Supreme Council
of Health) and other government sectors to
ensure total alignment by petroleum operators
and compliance with the applicable national
legislation;
• Encouraged the implementation of Clean
Development Mechanism (CDM) projects
in line with the United Nations Framework
Convention on Climate Change (UNFCCC).
The directorate has, therefore, executed its
mandate of monitoring and controlling HSE risks
within the petroleum sector and will strive to
make continuous improvements.
 Annual
Report Information and Communication
Technology (ICT)
Q P effectively utilizes its information and
communication technology system and
services through the corporation’s business
value chains in the exploration, production,
transport, refining and marketing stages. The ICT
Department’s mission is to enable QP’s vision by
capitalizing on ICT capabilities and resources to
maximize business benefits and address future
opportunities and challenges.
The ICT Department has developed a strategy
for the next five years based on QP’s mission,
vision and business objectives. It aims to
maximize ICT benefits to business, to minimize
related risks and to quickly respond to business
requirements and challenges.
To better achieve its strategy and objectives, the
ICT Department in the past year has developed
an ICT governance roadmap by mapping ICT
processes, Key Performance Indicators (KPIs)
and controls based on the business-oriented ICT
strategy and industry best practices.
In addition, Project Management Office (PMO)
methodology framework, methodology and
processes have been developed to standardize
project management practices to unify ICT
project execution across ICT, thus maximizing
the benefits of ICT deliverables. Moreover,
the department implemented a service
change management process to respond
to the changing business requirements while
maximizing value and reducing disruption and
re-work. Policies, processes, forms, and Change
Assessment Panels (CAPs) were formed to
support this function to ensure that ICT changes
are recorded, assessed, authorized, prioritized,
planned, tested, implemented and documented
and reviewed in a controlled manner.
In addition and as part of the latest ICT
reorganization, the merger of Doha/Offshore
Telecom under the ICT Infrastructure department
was successful and will serve as the basis
for all future telecom areas mergers under
the ICT Department. The first output was
the development and implementation of
automated Qtel billing systems.
The ICT Department averaged 99.99999% in
network accessibility and availability, 99.7%
in datacenter connectivity, 98% in users’
satisfaction, and 98% in meeting users’ needs
with more than 80,000 requests and incidents
received per year over the five major locations
and buildings within the agreed Service Level
Agreements (SLAs).
The ICT Department’s activities can be
categorised into two broad areas: business
projects and technology initiatives.
20
 Annual
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Business Projects
• e-Ras Laffan Program
A program was initiated to provide a central
point of information and access for QP users,
external business partners and the general
public. In addition, it provides a number of
e-Services to Ras Laffan Industrial City (RLC)
and the various companies that do business
with RLC. More than 80+ companies have
already been registered in the related portal
and are/will be using various applications,
including the mission critical Permit to Work
System.

• Petrel Technology Upgrade

A significant technology upgrade has been
successfully deployed in QP’s Oil & Gas
Ventures Department, thus allowing users to
achieve major performance improvements
and giving them the ability to handle large
models with the reduced processing time
of from two hours to just minutes. This is
imperative for Petrel users to perform their
jobs efficiently.
• Implementation of DT Project Completion
Gate
With the implementation of the final gate
for the SAP Project Systems module, the
full end-to-end life cycle approval for all
engineering projects, from concept to
commissioning, is now automated through
the system which results in productivity and
efficiency improvement.
• Corporate HSE KPI Dashboard
A corporate dashboard was implemented
to visually illustrate Incident Management
Performance to enable the Corporate HSE
Department to monitor HSE performance
and instigate continuous improvement
across the corporation.
Technology Initiatives
• Pushmail
Like BlackBerry, PushMail is a service that
provides access to QP email, calendar, and
contacts through the Internet but without
the major costs associated with BlackBerry.
In addition, the ICT Department deployed
wireless access to Pushmail across the
entire regions covering Doha, Mesaieed,
Ras Laffan and Dukhan. A total of 364
access points have been installed.
• Internet for All
The ICT Department made the Internet
available for all QP staff, regardless of
grades or levels, in order to enhance staff
productivity and improve work practices.
• Optical Network Backbone Upgrade
In 2011, the optical network backbone
was upgraded from 2.5 Gbps to 10 Gbps.
This will enable QP to have complex data
centers set up between regions as well
as be ready for the huge bandwidth
demands of CCTV systems. It will also allow
for the easier implementation of future
sophisticated applications.
• Window 7 Deployment
The ICT Department started a
company-wide rollout of Windows 7 as
a replacement for the current standard,
Windows XP. The project went into a
complicated and long evaluation process
in order to ensure that Windows 7 is
fully compatible with QP’s hundreds of
applications.
In conclusion, with a solid, industry-standard
technology platform and strategic, business-
aligned IT-enabled solutions, the ICT Department
is fully capable of meeting QP’s rapidly
increasing information and communication
technology needs.

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Q P’s Technical Directorate has been at
the forefront of project activities in Qatar,
managing and implementing capital projects for
QP’s core business, major infrastructure projects
for joint venture developments, and infrastructure
projects for the State of Qatar. The directorate
continued to pursue its mission to provide
innovative solutions that consistently surpass
customer expectations, with special adherence
to safety, environment, health, quality, synergy
and human capital development. The main
objective remains to be the successful execution
of all capital projects in accordance with their
scope, schedule and agreed budget.
Over the last 20 years, there has been a gradual
change and growth in the value, type, numbers
and complexity of projects managed by the
directorate as well as a significant increase in
the number of its customers.
Key strategic projects managed and
implemented by the Technical Directorate during
the year 2011 are listed below:
Oil & Gas related Infrastructure Mega
Projects
Sulfur Recovery Upgrade (SRU) Project at
Mesaieed: Upgrading the existing Sulphur
Technical Directorate
Recovery Unit with the installation of a new Acid
Gas Enrichment Unit (AGEU), Tail Gas Treatment
Unit (TGTU) and associated utilities to achieve
sulphur recovery of 99.5%.
Acid Gas Recovery Project (AGRP) at Dukhan:
Acid Gas Recovery Project will treat 450
MMSCFD of Khuff gas to achieve an H2S
content of 4ppm and supply sweet fuel gas to
downstream industrial consumers. It includes
two 14.5-km 30-inch pipelines, a methyldieth-
anolamine (MDEA) Sweetening Unit, a triethylene
glycol (TEG)-based Dehydration Unit, an Acid
Gas Compression Unit, and associated utilities
and off-site facilities at the Arab-D plant in
Dukhan.
Ras Laffan Port Expansion Project: Significant
expansion of the existing Ras Laffan Port to
enable it to handle 77 million tons per annum of
LNG and other liquid products.
Ras Laffan Common Cooling Water Project
Phase-II:
Construction of a Centralized Common Cooling
Water System for key consumers within Ras
Laffan Industrial City. In Phase II, Category-1
and 2 have been commissioned; Phase III is in
progress
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• High voltage network upgrade at Dukhan

• Glycol regeneration units at Dukhan
• Strategic Gas Transmission Pipeline (SGTP
twin 36” pipeline)
• 18” multi-product pipeline from the QP
Refinery to the Doha depot (Abu-Hamour)
for multi-product transfer system
• Drainage system upgrade - QP Ref.
Mesaieed
• Replacement and construction of new
service berths at Ras Laffan
• West side roads, Khalifa Street Phase II and
security gate - West side support service
development at Ras Laffan
• New south side roads and grading of
corridors - Road network on south side of
Khalifa Street at Ras Laffan
• Replacement and construction of new
service berths

Upgrading of Crude Oil Import / Export Facilities

and Beach Landing Valves at Halul:
Completed the replacement of existing crude
oil loading pumps to increase the reliability of
the existing crude oil handling facilities and
upgraded the system for enhanced operational
flexibility.
Halul Power Supply through Submarine Cables
2x 3C;. 132kV, 100km sub-sea power cables
rated for 100 MW to Halul Island from Ras Laffan
National Security Shield: Sensor Tower Platform
and Forward Mounted Base Platform
The NSS system will provide a system for
observation, detection, decision making and
intervention action to enhance the security of
all vital offshore assets by installing eight new
Sensor Tower Platforms (STPs) and seven Forward
Mounted Base Platforms (FMBs).
Significant Achievements in 2011
Improved Tendering Process for Feasibility and
Concept Optimization
The use of the Umbrella Consultancy Contracts
has improved the efficiency of the tendering
process for Feasibility/Concept Optimization, and
several studies were successfully completed for
Dukhan, Mesaieed and offshore
Bentley 2011 Be Inspired award for Innovation
QP competed with over 350 entries from around
the globe and won Bentley’s 2011 Be Inspired
Award for Innovation in Process Manufacturing
at a ceremony held in Amsterdam, Netherlands.
The corporation was recognized for the
“Creation of Intelligent As-built Models of
Offshore Facilities Using a Combination of
Terrestrial Laser Scanning and Verified Existing
Engineering Drawings.”
Future QP Plans and investments in the
Petroleum and Infrastructures Sector
• Strategic Storage Tanks for State of Qatar
for 2030-2015
QP intends to establish petroleum product
storage facilities in the State of Qatar in
two phases to meet the demand during
certain disruptions in the normal supply of
petroleum products.
• Qatar Petroleum District
This is QP’s iconic project that will house the
business hub and central headquarters of
the corporation in West Bay.
• Grading of Plots & Corridors and
Construction of Associated Roads for Future
Downstream Venture Industries at RLC
This project is in accordance with RLC’s
Business Master Plan and is aimed at
providing the appropriate basic business
platform for future downstream industries at
RLC.

23
 Annual
Report Crude Oil and Natural Gas

Onshore Fields
(Dukhan)

Main Activities of
Dukhan

T he Dukhan Field is a
large oil and gas field
extending over an area
of approximately 80 kms
by 8 kms and is located
about 80 kms to the
west of Doha. The field
is comprised of three
sectors from North to
South -- Khatiyah, Fahahil
and Jaleha/Diyab. Oil
and gas production is
separated in four main
degassing stations namely
Khatiyah North, Khatiyah
Main, Fahahil Main and
Jaleha, all of which are
continuously manned The unmanned satellite Dukhan operation has storage and export
stations are Fahahil North and Fahahil South, facilities at the Mesaieed Terminal. The Terminal
while Khatiyah South is now also a manned and Export Department receives stores,
station. The Diyab satellite station at the southern schedules and exports crude oil and naphtha.
end of the field has no process facilities and its
total oil production is sent to Jaleha station for The production support activities comprise
processing. Stabilized crude oil is transported facilities for potable water distribution, a power
through pipeline to Mesaieed port, which is station, workshop facilities and a communication
about 100 km east of Dukhan. network in the Dukhan Field.

The Dukhan oil field has the capacity to
produce up to 335,000 barrels per day (b/d).
However, actual annual production is based
on reservoir management requirements. Other
production facilities are related to associated
gas, non-associated gas, raw natural gas
liquids (NGL) production from associated gas,
Arab D Gas Cap NGL and Arab D condensate
production.
In addition to these, facilities for the injection
of North Field gas into the Khuff Reservoir, the
injection of lean gas into the Arab D Gas Cap
and water injection into the main oil reservoirs
of Arab C, Arab D and Uwainat for pressure
maintenance are also operated on a continuous
basis in Dukhan.
The Dukhan Field has a total of 185
oil-producing wells, 211 water-injection wells and
57 gas producers and injector wells. According
to the latest well status, the total number of wells
in Dukhan is 632, and this includes all production,
injection, observation, closed-in and abandoned
wells.
In addition to the above production/process
facilities, various housing and recreational
facilities are available in Dukhan and clubs,
catering and security services are also provided
to Dukhan residents.
Marketing and Development Plans
The main products for export from Dukhan oil
and gas fields are crude oil, condensate, NGL
and stripped associated gas (SAG).
The following projects are currently under
construction or in progress: an acid gas recovery
plant, produced water re-injection facilities, the
drilling of new wells, and abandonment of old
wells.
Major civil infrastructure development projects
are also being implemented in Dukhan. Some
of the major projects include the relocation
of industrial facilities outside of Dukhan, the
Dukhan-Umm Bab-Salwa road, a new sewage
treatment plant, Dukhan housing projects, and
other civil projects.

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 Annual
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Major Customers Also ongoing is the implementation of phase

The following products are sent to various
internal and external customers:
• Crude oil is exported through Mesaieed’s
Terminal Operations Department and
is also supplied to the QP Refinery in
Mesaieed.
• Condensates are delivered to the QP
Refinery in Mesaieed.
• Arab D NGL is sent to NGL-4 in Mesaieed.
• NGL is provided to NGL and NGL-2 in
Mesaieed.
• SAG is supplied to Qatar National Cement
Company (QNCC), QAPCO and QAFCO
via QP’s Gas Distribution System.
II of the Dukhan Physical Development Plan
(DPDP) projects comprising Phase IX and Phase
X, Dukhan Housing Projects, Civic Building and
supporting infrastructure, utilities and services
within the Dukhan township.
Now also being implemented are the DPDP
infrastructure, utilities and services projects in the
QP concession area.
In addition to this, a new Western district hospital
has been completed and inaugurated. The
new name of the hospital is the Cuban Hospital,
Zikreet.

Future Expansion Plans Another major project covering the full-field,

A major project on the setting up of an acid 3-D seismic survey of the Dukhan Field has been
gas removal plant , which would supply completed. The project report is expected to be
sweet gas to Dukhan consumers, is now under received by the end of 2012.
construction. It will be commissioned in Dukhan
by year 2013. The project has been awarded Historical Background on Dukhan Field
to Petrofac, which is based in Sharjah, UAE. Development
Detailed engineering and procurement are now The development of the Dukhan field has
in progress. taken place in various stages. The first well was
drilled in 1939-1940, confirming the presence
PWI Phase VII will increase the capacity of PWI of commercial quantities of oil in the area.
PS.3 and PS.6 to 120,000 b/d and 150,000 b/d, Further work was suspended due to World War
respectively. II. The development of the Khatiyah sector was
then started from 1947 onwards and the first
A sweet fuel gas project is currently being built oil was exported from the Mesaieed port on 31
to supply NF sweet gas as fuel to all Dukhan December 1949.
customers, including QP, QNCC, and Gulf
Cement Company (GCC). The development of
the two other sectors,
Fahahil and Jaleha/
Diyab, in Dukhan was
carried out in stages,
starting with Fahahil
in 1954 and then
Jaleha in 1955. The
Dukhan Power Station
was commissioned
in 1958. The Khuff
non-associated
gas reservoir was
discovered in 1959 at
an average depth of
10,000 feet. In 1974, the
Fahahil Stripping Plant
was also commissioned
to recover raw NGL
from associated
gas. In 1976, the first

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 Annual
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development well in the Khuff reservoir was
drilled and eight Khuff wellhead treatment plants
were subsequently commissioned in stages from
1978 to 1982.
Powered water injection to maintain the reservoir
pressure at both Arab C and Arab D reservoirs
was taken up in stages starting in 1989, with the
last phase eventually completed in 1998.
The pressurization of the Khuff reservoir with
surplus North Field gas was started in 1992 with
the commissioning of a compressor station in the
Fahahil area.
The Arab D gas cap recycling plant, which
processes 800 million standard cubic feet per
day (mmscfd) of Arab D Cap Gas and recovers
38,000 barrels per day of stabilized condensate
and 750 tonnes/day of NGL, was commissioned
in 1998. The residue gas is re-injected back into
the same reservoir. A major project to upgrade
the Arab D plant facilities to recover C2+ raw
NGL (about 5600 t/d of NGL) and supply to the
NGL-4 Project in Mesaieed has been completed
and the plant has been commissioned.
A major project for a gas lift system that would
artificially lift the oil to enhance production and
ultimately increase recovery from the field has
been implemented.

Major Achievements up to 2011

1 Drilling of the first well in Dukhan 1939/40

2 First shipment of crude oil from Dukhan 1949
3 Discovery of non-associated gas in the Khuff reservoir 1959/60
4 Commencement of power water injection in Dukhan reservoirs for pressure mainte- 1989
nance
5 Commissioning of the Arab D Gas Recycling plant to recover condensates and NGL 1998
from the Arab D Reservoir Gas Cap
6 Commissioning of NGL4/DKADU to recover 5600 t/d of NGL from the Arab D Gas Cap 2003
7 Commissioning of the gas lift project 2003
8 Attainment of ISO 9001:2000 Quality Certification for the entire Dukhan Operations 2004
9 Central Office Building for Dukhan Operations completed 2005
10 New department of Well Integrity established to ensure safe operation of oil and gas 2009
wells.
11 Installation of new dehydration units at FSP 2011
12 Mesaieed tank farm upgraded, with the rehabilitation of old tanks, the construction of 2011
new ones, increase in storage capacity and change in tank farm philosophy. Multi-
product berth is at final stage of completion.
13 Significant reduction in gas flaring achieved 2011
14 Two new fire stations constructed and commissioned at Fahahil and Umbab 2011

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Offshore Fields

Operations - Offshore Fields 4.1. Upgrading of crude oil import/export

Q P operates two offshore production stations,

PS-2 and PS-3, which can be found in the
northeast of Qatar’s territorial waters. These
4.2.
facilities
Major overhaul of one crude oil
storage tank
production stations are located in the Maydan
4.3. Construction of a new Central
Mahzam (MM) and Bul Hanine (BH) fields.
Maintenance Workshop
Both PS-2 and PS-3 platforms produce crude
oil, associated gas and condensate. Oil with 4.4. Installation of new fire water pumps
condensate is piped to Halul Island for storage 4.5. Construction of a new fire station
and export. On the other hand, the gas
4.6. Construction of a new clubhouse
produced is primarily used to assist in lifting the
oil from reservoirs, and it is also utilized as station
and Halul fuel gas as well as feedstock of NGL Future Expansion Plans
facilities in Mesaieed. Future expansion plans include the following
major projects:
Major Customers
MM and BH Fields:
QP’s major customers for crude oil, gas and
condensate include Mitsubishi Corporation, 1. BH field redevelopment concept
Exxon Mobil, Total, Cosmo, Marubeni, Itochu, and optimization and engineering studies are
others. expected to be completed by the first
quarter of 2012.
Major Achievements 2. On implementation of BH redevelopment,
field production is expected to increase in
1. Drilling of one new producing well with 2018.
a potential of 1,300 b/d. In addition,
three producing wells were worked-over/ 3. Studies of MM field reservoirs are expected
side-tracked with a potential of 3,300 b/d. to be completed within 2012.
2. Installation of remote control systems in 4. Upgrading of escape capsules at both PS-2
four well. and PS-3
3. Reduction in gas flaring by around 9% of 5. Preparation is ongoing for refurbishing the
gas flared in 2010 protective coatings on PS-2, PS-3 and
wellhead jackets structures.
4 Completion of the following projects in
Halul:

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 Annual
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Exploration and PSA Oil

Development Activities:

Exploration / Appraisal Activities

Q P continues to adopt the policy of increasing Qatar’s hydrocarbon resources by intensifying

the exploration and appraisal activities to cover most of Qatar’s areas through Exploration
and Production Sharing Agreements (EPSA) and Appraisal, Development and Production Sharing
Agreements (ADPSA) with major international oil and gas companies.

Exploration Activities in Blocks under EPSA and Open Areas

The following is a summary of exploration and appraisal activities and achievements in 2011:

EPSA Exploration Areas

Block Operator Activity
Block-3 Wintershall Consortium Prospectivity mapping 80% complete in 2011.
Effort to find 2 prospects to the obligatory wells is
ongoing.

Block-4 GDF SUEZ Qatar Block-4 Post-Khuff prospect mapping completed in

Company 2011. Pre-Khuff prospect mapping is ongoing.
Preparation for two wells is ongoing.

Block-4 North Wintershall Holding GmbH WQ4N-1 exploration well was drilled and post drill
studies and mapping completed during 2011.
Preparation for WQ4N-2 is ongoing

Block A JX Nippon Oil and Gas Explora- EPSA signed on 8 May 2011. Preparation to
tion Corp. acquire new seismic is ongoing. Preliminary G&G
studies are ongoing.

Block-BC CNOOC Middle East Qatar Ltd. Bathymetry survey and seismic reprocessing were
competed. G&G studies have been completed
partially. Preparations for seismic acquisition are
ongoing.

Block-D Qatar Shell Upstream Interna- Seismic acquisition is ongoing. G&G studies are
tional & PetroChina Investment also ongoing. Preparations for the first well, QS-1,
(Hong Kong) Limited are ongoing.

Exploration Open Areas: Blocks 2, 10, 13, 14 and E (Pre-Khuff) are under QP in-house studies. The
in-house studies for Blocks 1, 7 and 8 had been finalized. Also, the post-appraisal study for Block-11
to evaluate the exploration results and assess the remaining hydrocabon potential is being finalized.
The NN Structure potential appraisal and development scenarios are currently under evaluation.

Regional Qatar Mesozoic Exploration Study: A regional hydrocarbon study for the whole Qatar is
being conducted. The objective of the study is to map and assess the remaining potential Mesozoic
hydrocarbons.

Bunduq Deep Exploration Well: A deep exploration well to evaluate the Khuff and Pre-Khuff
hydrocarbon potential is currently planned to be drilled at Bunduq Field. The well is planned to be
spud in early 2013.

28
 Annual
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EPSA/DPSA Production Fields Activities

The following offshore fields under seven PSAs are currently in various stages of development by the
following operating companies:

Block Operator
Al Shaheen Maersk Oil Qatar
Al Rayyan Occidental Qatar Energy Company
Al Khalij Total E&P Qatar Ltd.
Idd El Shargi North Dome Occidental Petroleum of Qatar Ltd.
Idd El Shargi South Dome Occidental Petroleum of Qatar Ltd.
Al Karkara & A-Structures Qatar Petroleum Development Company
El Bunduq Bunduq Company Ltd.

Al Shaheen Field (Maersk Oil Qatar):
The implementation of the approved 2005 Field
Development Plan (FDP) continued throughout
2011. Some 16 wells were drilled during the year,
bringing the total number of wells drilled to 168
out of the planned 169 wells under FDP 2005.
The hook-up and commissioning of new facilities
and equipment were completed in 2011.
Some 110.6 million barrels of oil were produced
from the Al Shaheen Field in 2011, bringing the
total oil produced from the field to 1.163 billion
barrels as of the end of 2011.
Study work on the application of Enhanced
Oil Recovery (EOR) techniques continued in
2011. Pilot Low Pressure (LP) gas injection was
carried out in 15 wells in Kharaib and Shuaiba
reservoirs for pressure support and to determine
its effectiveness in increasing oil recovery.

29
 Annual
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Al Rayyan Field (Occidental Qatar Energy
Company): In October 2007, Occidental Qatar
Energy Company (OQEC) acquired Anadarko’s
interest and became the operator of the Al
Rayyan Field. A new field development plan
(FDP) was submitted and approved in 2010. The
scope of the FDP entails drilling/re-drilling of 7
new wells with facility upgrades and capacity
expansion.
As of the end of 2011, the drilling of four wells
were completed, out of the seven planned in
the FDP. Facility capacity expansion activities
are ongoing. Field activities continue to focus
on monitoring and improving operational
efficiencies to sustain production through
maintenance and ESP change-out workovers.
Al Khalij Field (Total E&P Qatar Ltd.): During 2011,
some infill development wells were drilled in
addition to the workover of wells. In parallel to
this, various geo-science and reservoir studies
have been conducted and are ongoing. Also,
increasing water handling capacity through the
de-bottlenecking of the process platform, PP1,
was completed.
Some 9.8 million barrels of oil were produced
from Al Khalij in 2011, bringing the total oil
produced from this field to 166.6 million barrels at
the end of 2011.
Idd El Shargi North Dome (Occidental Petroleum
of Qatar Ltd.): The Phase IV FDP was approved
in the first quarter of 2011. The scope entails
drilling 30 new wells, 15 capital workovers, two
Minimum Facilities Platforms (MFPs), a fourth
The 2011 crude oil production contribution from the QP-Operated and
EPSA/DPSA fields is shown below:
2011 Total Oil Production By Operator
EPSA/ DPSA
Operated
60%
power generator and the de-bottlenecking of
the water handling/disposal systems at PS1 and
Halul Island.
As of the end of 2011, 27 wells were completed
out of the 45 planned in the Phase IV FDP.
Two MFP installations and two out of six ESP
conversions were also completed.
Idd El Shargi South Dome (Occidental Petroleum
of Qatar Ltd.): The new 12” pipeline to PS1 was
installed and commissioned in March 2011. The
old 18” pipeline will be abandoned in 2012.
A new Phased Full Field Development Plan
(PFFDP) was approved in the first quarter of 2011.
Phases 1 and 2 each consist of the installation
of a Minimum Facilities Platform (MFP) for the
drilling of four and five wells, respectively. The
remaining Phases 3-5 entail the installation
of two large wellhead jackets and their
implementation will be decided based on the
results of Phases 1 and 2.
The Phase 1 MFP installation was completed in
2011 and drilling will commence in mid-2012.
The fabrication of the second MFP is in progress.
Al Karkara & A-Structures (Qatar Petroleum
Development Company): All three stages of Al
Karkara and A-North Full Field Development Plan
have been completed.
The Full Field Development Plan for A-South
Structure was approved in 2007 and completed
in 2011. A-South drilling commenced in early
2010 and the field came on production in April
2011.
QP Operated
40%
30

North Field
D iscovered in 1971, the North Field lies off the
northeast shore of the Qatar peninsula and
covers an area of some 6,000 sq kms, which is
equivalent to about half the land area of the
State of Qatar.
The North Field is considered to be the largest
single non-associated gas reservoir in the world
with total proven reserves of 900 trillion standard
cubic feet (tscf). The development of this vast
natural resource is of great strategic significance
to Qatar’s overall economic development.
North Field Alpha (NFA)
The first commercial exploration of the North
Field gas resource started in late 1991 with initial
gas production from Phase I (Alpha Project).
The gas produced is mainly used to supply the
local market, while the condensate is sent for
refining or export. A portion of the gas produced
from this project is re-injected into the country’s
strategic contingency reserve in Dukhan.
In 2011, the average production at NFA was
805 mmscf/d of gas and 24,118 b/d of stabilized
condensate. Total production was 295 billion
standard cubic feet (bscf) of gas and 8.8 million
barrels of stabilized condensate.
The preliminary study for a long-term solution
to enhance the production plateau of NFA
continued in 2011.
Al-Khaleej Gas Project (AKG)
The project is designed to develop reserves
from the North Field to supply 2.0 bscf/d of
sales gas to domestic consumers, in addition
to condensate, LPG and sulfur for export and
ethane for the local petrochemicals industry.
RasGas is the operator of AKG facilities.
The AKG Development and Production Sharing
Agreement (DPSA) was signed with ExxonMobil
on 2nd May 2000. Phase-I (AKG-1) commenced
commercial gas deliveries on 2nd November
2005. This phase is supplying 744 mmscfd of
sales gas to Ras Laffan Power Company, Oryx
GTL, Q-Power, Laffan Refinery, Ras Laffan Olefins
Company,and to other industries in the Mesaieed
area.
Phase-II development (AKG-2) has a nominal
design capacity of 1,250 mmscfd for supplying
31
Annual
Report
gas to local industries and power generation
plants. AKG-2 started up during the third quarter
of 2009. In 2011, AKG average production was
1,681 mmscfd of sales gas. AKG also produced
about 26.1 million barrels total condensate and
1.022 million tons of LPG in 2011.
QP has installed a new 36-inch lean gas pipeline
with a design capacity of 1.0 bscf/d to supply
the Mesaieed industrial area.
Barzan Gas Project
The Barzan Project will produce and process gas
from Qatar’s North Field to supply sales gas to
power stations and industries in Qatar, ethane
to the country’s petrochemicals industry, and
associated liquid hydrocarbons for sale in local
and international markets. The Barzan Project
is expected to supply 1.4 bscf/d of gas, with
the first gas flow planned for 2014. The project
will be located in Ras Laffan Industrial City and
operated by RasGas Company Limited.
A Joint Venture Agreement and a Development
and Fiscal Agreement were signed on 6th
January 2011 with QP holding 93% interest and
ExxonMobil taking up the remaining 7%.
Appraisal drilling had been completed and
development drilling is currently taking place.
The offshore topside and pipeline FEED were
completed by McDermott in the first quarter
of 2009, while the three offshore jackets were
installed in the fourth quarter of that same year.
The onshore FEED was completed by Chiyoda
in the third quarter of 2010. Both offshore and
onshore EPC contracts were awarded to Hyundai
Heavy Industries (HHI) and JGC Corporation,
respectively, in early 2011. The start-up of Train-1
is targeted for the third quarter of 2014 and then
Train-2 by the second quarter of 2015.
 Annual
Report

Drilling Department

T he Drilling Operations for Offshore Fields

(Maydan Mahzam and Bul Hanine)
and Onshore Field (Dukhan) continued its
activities in drilling, workover and well services
operations in 2011 using best industry practices
in an economical, safe and environmentally
friendly manner. Drilling operations and
all related services were conducted in
accordance to ISO 9001: 2008, ISO 14001: 2004
and OHSAS 18001: 2007.

The rig count and major operational activities

were as follows:

Offshore Fields: (Maydan Mahzam and Bul

Hanine)
The offshore drilling rigs count was two until June
2011. Operations were then continued with just
one rig as rig Al-Doha underwent maintenance
Onshore Fields: (Dukhan)
till the end of the year.

The main activities were as follows:
• A total of six (6) development wells were
newly drilled and completed.
• Completed testing well BH-116 Khuff
Appraisal and commenced drilling of well
MM-93 Khuff Appraisal.
• A total of five old wells were worked over
and re-activated or abandoned.
• Routine maintenance was carried out on
offshore wells as per the yearly plan.
• The total footage drilled was 41,804’.
The land drilling rigs count remained at four in
2011 and the main activities were as follows
• A total of 24 development wells were
drilled and completed.
• A total of twenty one (21) old wells were
worked over and reactivated, including
four abandoned wells.
• Routine maintenance was carried out on
onshore wells as per the yearly plan.
• The total footage drilled was 245,256’.

32

Halul Island
H alul Island is located around 96 kilometers
northeast of Doha and has an area of 1.5
square kilometers. It is equipped with major oil
terminal facilities that meet all international
standards. It is the main storage and export
terminal for Qatar Marine Crude (QMC) oil.
The island is equipped with 11 large crude oil
storage tanks with a total capacity of 5 million
barrels, and it has tanker-loading capabilities
comprising two single mooring buoys
(SBM) that allow two tankers to be loaded
simultaneously. With its range of facilities, Halul
Island has a loading capacity of over 100,000
barrels per hour, and it has the capability to
export more than 2.5 million barrels of crude
oil in one day.
It also has facilities for power generation, water
desalination, a harbor for supply boats, a
heliport, waste management as well as suitable
staff accommodation and all related domestic
facilities including restaurants, a clubhouse and
recreational facilities.
33
Annual
Report
Qatar Marine Crude (QMC) oil exported from
Halul is a blend of oil produced from five oil
fields. Two of these are QP-operated fields (MM
and BH) and the three others are operated
by QP joint venture partners on a production
sharing arrangement. Crude oil from producers is
transported to Halul by sub-sea pipelines.
The three joint venture producers are Occidental
Petroleum of Qatar Ltd. (OPQL) operating
PS-1 (Idd El-Shargi field - North and South
Domes), TOTAL Exploration & Production Qatar
(TEPQ) operating the Al-Khalij field, and Qatar
Petroleum Development-Japan (QPD) operating
the Al-Karkara and A-Structure fields.
Halul Terminal complies with the International Ship
and Port Security Code (ISPS), and follows recom-
mendations set out by the International Safety
Guide for Oil Tankers and Terminals (ISGOTT).
Halul Island has been playing a central role in
Qatar’s economy and in serving the world’s
energy demand for decades.
 Annual
Report
Qatargas Operating Company Ltd.
(Qatargas)
Q atargas, which was established in 1984,
pioneered the liquefied natural gas (LNG)
industry in Qatar. In 2011, the company saw
a clear shift, as it entered a new phase with
the completion of all expansion projects, thus
becoming a full-fledged operations company. Its
operations include the development of Qatargas
2, Qatargas 3 and Qatargas 4 projects, Laffan
Refinery, a dedicated fleet of ships, and Europe’s
largest LNG receiving terminal.
Today, Qatargas -- under the guidance of His
Excellency Dr. Mohammed Bin Saleh Al-Sada,
Minister of Energy & Industry and Chairman of the
Board of Directors at Qatargas -- is the largest
LNG-producing company in the world, with an
annual LNG production capacity of 42 million tons
per annum (mta). It is realising its vision to deliver
LNG to its customers around the globe, from its
world-class facilities in Qatar.
Qatargas operates all its existing trains and facilities,
including offshore, as well as the Laffan Refinery,
the Common Sulphur facilities, the Common Lean
LNG (CLLNG), the Common LPG (CLPG) and the
Common Condensate Storage & Loading (CCSL)
projects on behalf of its shareholders in all of its
assets.
Its offshore operations are located approximately
80 kilometres northeast of Qatar’s mainland.
Commissioned in 1996, the North Field Bravo
offshore complex is the heart of the Qatargas
offshore operation. Meanwhile, the company’s
LNG
onshore operations occupy a site within Ras Laffan
industrial City on a plot of land extending 3.9
square kilometres in area. Qatargas has seven LNG
trains, four of which are the largest in the world –
known as mega trains – each with a production
capacity of 7.8 mta.
The Qatargas vision is, by 2015 to be the world’s
premier LNG company, known for its people,
innovation, operating excellence, environmental
responsibility and corporate social responsibility.
Through Qatargas’ commitment and drive,
the company continues to make a significant
contribution towards a stable and sustainable
income for the State of Qatar where, in 2011, its
revenues represented almost 20% of Qatar’s GDP.
Today, Qatargas’ customers are spread throughout
the four corners of the world in European, Asian,
Middle Eastern and North and South American
markets.
In 2011, Qatargas’ milestones were significant. Early
in the year, the company signed an LNG deal with
Centrica for the UK market, and this was followed
by the accomplishment of receiving the coveted
“Green Award” for four Qatargas LNG carriers.
In March, Qatargas demonstrated its commitment
to Japan with a strengthening of the relationship,
following a devastating tsunami in that country and
amid rising energy security fears.
Throughout the year, Qatargas saw the
commissioning of cargoes to PetroChina’s first LNG
receiving terminal at Rudong, Jiangsu Province,
and the Map Ta Phut LNG Terminal in Thailand.
The company also secured a 20-year deal to
supply five mta of LNG to Argentina, and it signed
a Heads of Agreement with Petronas to supply
1.5 mta of LNG to Malaysia for 20 years. The year
2011 for Qatargas also marked the delivery of
the first Qatari LNG cargo to the Gate Terminal
in the Netherlands and the arrival of first Q-Max
vessel at the Isle of Grain Terminal in the UK and
at a terminal in China. The awarding of Laffan
Refinery’s Front End Engineering Design (FEED)
contract to Technip also took place in 2011 for
the refinery’s Phase 2. In addition, an EPC contract
was awarded for the Diesel Hydrotreater (DHT)
project, which is expected to come on stream
in 2014, thus enabling the plant to produce
higher-value and more environmentally friendly
products.
For Qatargas, at the very heart of its priorities is
34

corporate social responsibility. Qatargas does not
operate in isolation; on the contrary, the company
is intrinsically linked with the communities and
environments in which it operates, wherever they
may be around the world. Through the company’s
commitment to Qatarization, it was honoured
with the coveted Qatarization Award in 2011,
the second consecutive year that it received
this award. In 2011, in support of the Ministry of
Interior’s Ramadan Road Safety Campaign, the
company ran a month-long program, aimed at
raising awareness on road accident prevention,
in a bid to significantly reduce the number of
accidents and casualties on Qatar’s roads.
Qatargas is a responsible energy operator and
is committed to improve and promote the
environmental performance of LNG and its other
production facilities. As a company, it upholds
the highest standard of energy use efficiency,
responsible energy management and energy
conservation, and is committed to the responsible
management of the environment in which it
operates. Qatargas has a forward-thinking
and strategically developed Greenhouse Gas
Management Strategy.
For now and well into the future, Qatargas will
continue to seek increased energy efficiency
across its facilities, for continual improvement, for
a better tomorrow. The company is proud to play
its part in preserving the environment, for future
generations to come.
35
Annual
Report
Current Operations
Qatargas 1
Qatargas 1 was established to develop and process
natural gas from Qatar’s North Field to produce
LNG for export. The first LNG delivery was made
in October 1996 to Japan. Qatargas 1 consists
of three LNG trains (Trains 1, 2, and 3) with a total
production of about 10 mta of LNG. For Qatargas 1,
22 production wells were drilled and completed to
supply 1,600 million standard cubic feet (45 million
cubic meters) of dry natural gas per day from the
field’s reservoir, underneath the seabed, to the
existing Qatargas 1 onshore trains. The shareholders
of Qatargas 1 are QP (65%), ExxonMobil (10%), Total
(10%), Mitsui (7.5%) and Marubeni (7.5%).
In 2011, Qatargas 1 produced 10.1 mta of LNG,
while the total condensate production was 20.84
million barrels. A total of 164 LNG cargoes were
delivered by Qatargas 1 in 2011.
Qatargas 2
The Qatargas 2 (QG2) project is the world’s first fully
integrated value chain LNG venture. It includes
two world-class LNG mega-trains (Trains 4 and 5),
each with a capacity of 7.8 (mta) of LNG and 0.85
mta liquefied petroleum gas (LPG), condensate
production of 90,000 bpd, a fleet of 14 Q-Flex and
Q-Max ships and Europe’s largest LNG receiving
terminal. The shareholders of Train 4 are QP
(70%) and ExxonMobil (30%), while for Train 5, Total
holds a 16.7% stake, in addition to QP’s 65% and
ExxonMobil’s 18.3%.
 Annual
Report
Qatargas 2 includes 30 offshore wells and three
platforms in Qatar’s North Field. The offshore
platforms are unmanned and produce 2.9 billion
cubic feet of gas per day. Total production is
piped to shore via two wet-gas pipelines. The LNG
is processed using Air Products’ proprietary APX
process technology. As part of the total expansion
of Ras Laffan’s capacity, Qatargas 2 constructed
facilities for expanded LNG storage and loading,
including five 145,000-cubic-metre tanks and
three LNG berths, a 12,000 tonne/day common
sulphur system serving all Ras Laffan ventures, and
an export pipeline and mooring buoy for loading
condensate ships some 55 kilometres offshore.
Once the gas is processed and turned into LNG, it is
loaded and shipped in a specially designed fleet of
ships to markets in the United Kingdom, United States,
Asia and Europe. Upon arrival in the UK, the LNG is
off-loaded into the purpose-built South Hook LNG
Terminal at Milford Haven, Wales. The terminal is the
largest LNG receiving terminal in Europe and is linked
to the UK’s national pipeline grid, serving approximately
20% of the current UK natural gas demand.
In 2011, Qatargas 2 produced 15.7 mta of LNG,
38.7 million barrels of condensate and 1.5 mmt of
LPG. It delivered a total of 162 LNG cargoes.
Qatargas 3
The Qatargas 3 (QG3) project involved the
construction of a new LNG mega-train (Train 6)
with a capacity of 7.8 (mta). Production from Train
6 started in November 2010. Qatargas 3 is a joint
venture of QP (68.5%), ConocoPhillips (30%) and
Mitsui & Co. Ltd. (1.5%). The LNG produced by
Qatargas 3 is transported to markets worldwide
on a fleet of ten ships, each with a capacity of
carrying approximately 210,000-266,000 cubic
metres of LNG.
The upstream platforms and infrastructure of
Qatargas 3 consist of three unmanned platforms,
33 wells and two subsea pipelines, all of which
are shared with the Qatargas 4 project and are
operated remotely from an onshore control room.
Qatargas 3 produces 1.4 billion standard cubic
feet of gas per day, delivering LNG and substantial
volumes of condensate and LPG.
Natural gas from offshore is transferred to shore
with the associated condensate via subsea
pipelines. Qatargas 3 utilises the same Air Products’
proprietary APX process technology as Qatargas
2. This helps to achieve economies of scale and
integration, which puts Qatargas ahead of its
competitors. The Qatargas 3 and Qatargas 4
projects were developed and executed by a joint
asset development team to capture synergies
between the two projects.
Train 6 was safely started up and the first LNG from
Qatargas 3 was produced in November 2010. The
LNG is shipped predominantly to markets in the United
States, Asia and Europe. At full operational capacity,
the train is capable of providing approximately one
billion cubic feet of gas per day for 25 years.
In 2011, Qatargas 3 produced 7.6 mta of LNG, 18.6
million barrels of condensate and 0.75 mmt of LPG.
It successfully delivered a total of 86 LNG cargoes.
Qatargas 4
Qatargas 4 (QG4), a joint venture between
QP (70%) and Royal Dutch Shell (30%), started
producing LNG in January 2011 and it completes
Qatargas’ planned LNG expansion projects. The
project involved the construction of a new LNG
mega-train (Train 7), similar to Qatargas 2 and
Qatargas 3, with a production capacity of 7.8 mta.
Its upstream platforms and infrastructure consist of
three unmanned platforms (each containing 11
wells) and two subsea pipelines, which are shared
with Qatargas 3. Qatargas 4 produces 1.4 billion
standard cubic feet of gas per day, delivering LNG
and substantial volumes of condensate and LPG,
as well as high purity grade sulphur.
Qatargas 4 utilises the same Air Products’
proprietary APX process technology as Qatargas
2 and Qatargas 3, thus helping to achieve
economies of scale and integration not previously
possible in the LNG industry. The Qatargas 3 and 4
projects were developed and executed by a joint
asset development team to capture synergies.
LNG from Qatargas 4 is transported to global
markets via a fleet of eight Q-Flex or Q-Max ships
(with approximately 210,000–266,000 cubic metres
capacity each), which were constructed in Korean
shipyards. Qatargas 4 predominantly supplies
markets in North America, the Middle East and Asia.
In 2011, Qatargas 4 produced 6.1 mta of LNG, 15.7
million barrels of condensate and 0.63 mmt of LPG.
It successfully delivered a total of 68 LNG cargoes.
36

RasGas Company Limited
R asGas Company Limited (RasGas) is
the operator of all RasGas projects
and is owned by Qatar Petroleum and
ExxonMobil RasGas Inc. (with 70% and 30%
shareholdings, respectively). RasGas is a
leading player in the global natural gas
industry, supplying and delivering liquefied
natural gas (LNG) to an international
portfolio of customers with a fleet of
long-term chartered LNG vessels. RasGas
also supplies natural gas and ethane to the
domestic market in Qatar.
RasGas oversees and manages all the
operations associated with its seven LNG
trains that have a total production capacity
of around 37 million tonnes per annum (mta),
its two sales gas production facilities, helium
production facilities, as well as major shipping
contracts and global commercial partnerships.
The company has developed world-class
offshore and onshore facilities for the
extraction, processing, storage and export of
gas from Qatar’s North Field.
RasGas is currently executing two projects on
behalf of Ras Laffan Helium 2 and Barzan Gas
Company Limited, both of which will add to its
production capacity.
RasGas Company Limited is the operating and
project development company for and on
behalf of the following:
37
Annual
Report
1. Ras Laffan Liquefied Natural Gas
Company Limited — RL
RL was established in 1993 to produce LNG and
related products from two trains, Trains 1 and 2, which
each have a production capacity of 3.3 mta of LNG.
2. Ras Laffan Liquefied Natural Gas
Company Limited (II) — RL (II)
RL (II) was established in 2001 to produce LNG
and related products from three trains, Trains 3, 4
and 5, which each have a production capacity
of 4.7 mta of LNG.
3. Ras Laffan Liquefied Natural Gas
Company Limited (3) — RL (3)
RL (3) was established in 2005 to produce LNG
and related products from two trains, Trains 6
and 7, which each have a production capacity
of 7.8 mta of LNG.
4. Ras Laffan Helium
Ras Laffan Helium was established in 2003 to
extract, purify and liquefy helium from the North
Field. The first Ras Laffan Helium plant has a
production capacity of approximately 9 tonnes
per day of pure helium. It started production in
August 2005 and develops resources on behalf
of the co-owners: RL, RL (II), and Qatargas 1. Ras
Laffan Helium 2 is scheduled to start-up in 2013
with a production capacity of approximately 17
tonnes per day of pure helium. Ras Laffan Helium
2 will be the world’s largest single helium refinery.
 Annual
Report Pipelines

Dolphin Project

T he Dolphin Project entails the development

of reserves from the North Field for the
production of wellhead gas sufficient to export
2.0 bcsfd of sales gas to the United Arab
Emirates. The project processes gas at Ras
Laffan, where condensate, ethane, LPG and
sulfur are stripped out and sweet lean gas is
then delivered to the UAE through a sub-sea
pipeline.

The Development and Production Sharing

Agreement (DPSA) was signed on 23rd
December 2001 between QP and the
contractor (comprising Dolphin Investment
Company with 51% interest and Total of France
and Occidental Petroleum of the USA with
24.5% interest each). The delivery of export gas
from the first stream commenced in the third
quarter of 2007. The second stream began in
February 2008 and full lean gas export to the
UAE has been continuing steadily since then.

In 2011, average sales gas production from the

Dolphin Project was 2,000 mmscfd, 1.294 million
tons of LPG and 34.5 million barrels of total
condensate.

38

NGL and Local Gas
QP GAS OPERATIONS
Q P Gas Operations under the Operations
Directorate is responsible for managing
the complete value chain for non-associated
gas production, associated gas and NGL liquids
processing, local transmission and distribution
and export of liquefied petroleum gas (LPG) and
condensates.
Key Operational Objectives of Gas
Operations
• Operate the plants with the highest possible
levels of personnel and plant safety while
meeting all QP and State HSE regulations
and guidelines;
• Optimize processing of various feed
streams to maximize plant utilization and
consequently maximize State revenues and
income;
• Meet fuel gas demands of State power
plants and fuel gas/feedstock requirements
for local Industry;
• Meet export targets for LPG and NGL
condensate.
Gas Operations acts as the integrated shutdown
coordinator for all the hydrocarbon industries
operating in Qatar in order to minimize the
aggregate downtime and consequent
production losses. It also acts as the coordinator
and facilitator for all pipeline road crossings and
construction road openings throughout the State
of Qatar.
39
Annual
Report
Assets under Gas Operations
• North Field Alpha – Offshore gas production
in Qatar’s North Field
• Khuff Facilities – Onshore gas production in
Dukhan
• North Field Injection Station (NFIS) – Gas
reinjection facilities at Fahahil in Dukhan
• NGL Complex – Gas processing plants in
Mesaieed
• LPG and condensate storage tanks in
Mesaieed
• NGL Jetty in Mesaieed – For exporting LPG
and condensates
• Transmission and Distribution Pipelines
Network – For distributing various
hydrocarbon gases and liquids within the
State of Qatar
NGL Complex, LPG and Condensate
Storage Tanks, and NGL Jetty
The NGL complex in Mesaieed is made up of the
following major plants and facilities for gas and
NGL processing, treatment, storage and exports:
• NGL-3 gas plant and gas sweetening unit
(AGR/SRU)
• NGL-3 condensate plant
• NGL-2 stripping plant
• NGL-1, NGL-2, NGL-4 Trains 1 and 2
fractionation plants
• Tank Farm for the storage of LPG and
condensates
• NGL jetty for the export of LPG and
condensates
 Annual
Report

The NGL Complex products and their distribution during 2011 were as follows :

QP Gas Operations 2011 Production and Distribution Highlights

Year 2011
Product Product Distribution
Production
NF Lean Gas 791 mmscfd Supplied to State power plants and industries across Qatar
as fuel and feedstock
Offshore Stripped As- 70 mmscfd Supplied as feedstock to QAPCO’s Ethane Recovery Unit
sociated Gas (OFF- (ERU) in Mesaieed
SAG)
Ethane Rich Gas (ERG) 4,794 mtd Supplied as feedstock to the petrochemical complexes of
QAPCO and Q-Chem in Mesaieed
Propane 4,014 mtd Exported through the NGL jetty in Mesaieed.
Butane 2,899 mtd Supplied as feedstock to QAFAC’s MTBE plant in Mesaieed;
balance exported through the NGL jetty in Mesaieed
NGL Condensate 1,413 mtd Exported through the NGL jetty in Mesaieed
North Field Stabilized 24.2 mbd Supplied as feedstock to the QP Refinery’s NFC Unit in
Condensate (NFC) Mesaieed.
Liquid Sulfur 207 mtd Exported via QAPCO’s facilities in Mesaieed
Units: mmscfd – million standard cubic feet per day, mtd – metric tons per day, mbd – thousand barrels per day

Transmission and Distribution Pipelines In addition, 167 mmscfd of stripped associated

Network
The Transmission and Distribution Pipelines
Network comprises an interconnected
hydrocarbon pipeline network – the GDS (Gas
Distribution System) – of over 3,100 kilometres
of pipelines, associated manifolds and 52
distribution stations located throughout the State
of Qatar.
The GDS receives fuel gas (C1) primarily from
QP’s NGL Complex in Mesaieed as well as from
the Al-Khaleej Gas plants (AKG-1 and 2) in Ras
Laffan, while ethane gas (C2) is received from
AKG-1 and 2 and Dolphin Energy’s plants in Ras
Laffan.
The GDS caters to the fuel/feedstock
requirements of power plants and industries within
Qatar, viz. Q-Chem, QAPCO, QVC, QAFCO,
QAFAC, QASCO, QP Refinery, Qatalum, MPCL,
QNCC, GCC, DEL, RLOC, Ras Girtas Power
Company, etc.
In 2011, a total of 837 mmscfd of gas was
supplied to power plants, while 1,013 mmscd of
gas was supplied to various industries in Qatar.
gas (SAG) and 129 mmscfd of ethane gas was
supplied as petrochemical feedstock to QAPCO
and Q-Chem plants in Qatar.
2011 Highlights for Gas Operations
• ISO 14001 Certification for Environment
Management System obtained;
• Re-certification obtained to ISO 9001 for
Quality Management System;
• Sustained production rate achieved at
the NFA through the control of down-hole
scales as well as choke valves trim
replacement;
• De-bottlenecking achieved in NGL-3
extraction plant through process
optimization;
• Raw NGL yield improvement obtained in
NGL-2 stripping plant through gasoline
injection;
• Third-party pipeline operation agreements
operationalised with RLOC, QATOFIN,
Q-Chem and QATEX;
• Redundant pipelines removal and corridor
restoration on-going to facilitate release of
valuable land for future development.

40
 Annual
Refining Report

Refining

T he QP Refinery started as a small topping plant

in 1958 and has grown over the years into a
giant refinery organization, successfully making
the State of Qatar self-sufficient and export-
oriented in refined oil and petroleum products. It
has provided added value to the country’s natural
wealth, improved the refining economics in the
State, and provided citizens with the necessary
expertise in the areas of management, operations,
engineering, maintenance and marketing.

Year 2011 Overview

The main activity of the refinery is to process crude
oil and condensate into various finished products,
which are intended to meet both domestic
(totally/partially) and export demands. The main
finished products are liquefied petroleum gas
(LPG), petrochemical naphtha, premium gasoline,
super gasoline, jet fuel, diesel, decant oil and fuel
oil.

The planned intakes and processing capacities for 2011, in barrels per stream day (bps/d), were as follows:

Feed Design Plan

Crude 80,000 81,250
*NFC 26,000 22,300 (based on feedstock availability)

**DSC 31,000 23,800 (based on feedstock availability)

Total 137,000 127,350

* NFC — North Field Stabilized Condensate

** DSC — Dukhan Stabilized Condensate

Refined Products Export 2011

The total refined products exported during the Mogas 90R
213,959 MT
year amounted to 1,789,571 metric tons against
the planned export volume of 1,711,000 metric
tons. The refinery imported 352,839 metric tons of Naphtha Mogas 97
834,545 MT 509,438 M
light gas oil (LGO) and 398,523 metric tons of Jet
A-1 to meet the high increase in local demand.

Marketing of Refinery Products

The marketing and other commercial aspects
of refinery products sales are being undertaken FO 180 CST
DCO
by Qatar International Petroleum Marketing 15,350 MT
216,279 MT
Company Ltd. (Tasweeq), working in close
coordination with the Production Planning, Major Customers and Destinations
Scheduling and Export Division. The division is
The major international customers for the
responsible for working out the annual, quarterly
company’s products are Glencore, Gunvor
and monthly planning and products export
International, Litasco, Vitol, FAL Oil, Bakri Trading
schedule.

41
 Annual
Report

Company, and Marubeni. Products Destination 2011

The QP Refinery also supplies Singapore
refined products locally to 40,200 MT / 2%

WOQOD, SEEF, QAFAC, QAPCO UAE

and QP‘s NGL Complex in Japan 711,222 MT / 40%
Mesaieed. 834,545 MT / 47%

In 2011, countries in the

Arabian Gulf were the major
destinations for gasoline,
diluted crude oil (DCO) and Iraq
straight run fuel oil (SRFO), while 29,999 MT / 2%

naphtha was exported to

petrochemical plants in Japan. Kuwait
Oman 28,549 MT / 1%
145,057 MT / 8%

Laffan Refinery

L affan Refinery, Qatar’s first condensate refinery,

started production in September 2009. It is
designed to be one of the largest condensate
refineries in the world. The shareholders of the Laffan
Refinery are Qatar Petroleum (51%), ExxonMobil (10%),
Total (10%), Idemitsu (10%), Cosmo (10%), Mitsui (4.5%)
and Marubeni (4.5%).
The refinery started with a processing capacity
of 146,000 barrels per stream day (bpsd) and
currently utilises the field condensate produced
from Qatargas’ and RasGas’ facilities. The Laffan
Refinery has a production capacity of 61,000 bpsd
of naphtha, 52,000 bpsd of kerojet, 24,000 bpsd of
gasoil, and 9,000 bpsd of LPG.
Laffan Refinery’s venture activities
continue with plans to expand
condensate refining capacity to
supply more products from a second
refinery, which will be known as the
Laffan Refinery 2 (LR-2). Expected to
be fully operational by early 2016, this
facility will be able to process an additional 146,000
bpsd, thus boosting Laffan Refinery’s processing
capacity to a total of 292,000 bbl/d.
The Laffan Refinery helps to capture synergies and
opportunities from the development of the North
Field, Qatargas, RasGas and other ventures at Ras
Laffan Industrial City. It consists of process units
including utility systems, distillation units, naphtha
and kerosene hydrotreaters, a hydrogen unit, and
a saturated gas plant producing naphtha, kerojet,
gasoil and liquefied petroleum gas (LPG). Meanwhile
and in addition to this, some debottlenecking will be
conducted and a new gasoil hydrotreater is to be
built in the first refinery, LR-1.The Diesel Hydrotreater
Unit (DHT) is expected to come on stream by the
second quarter of 2014.

It is anticipated that from 2014, most of the gasoil

produced will be converted to diesel (less than 10
ppmS). Together with the arrival of a new receiving
and loading facility, this will result in an improved,
environment-friendly, road fuel distribution network
across the State of Qatar.

In 2011, the Laffan Refinery produced 53.3 million

barrels of refined products at an average of 146,000
barrels per day.

42
 Annual
Report

Oryx GTL

O RYX GTL Limited is a large scale gas-to-liquids

(GTL) plant, converting natural gas into
high-quality GTL products, such as GTL diesel and
GTL naphtha. The plant has been in operation since
2006 with a design capacity of 34,000 b/d, and the
business has met or exceeded targets in the areas
of safety, environmental compliance, employee
turnover, production volumes, operating cost and
net profit during 2011. The shareholders, Qatar
Petroleum (51%) and Sasol (49%), were rewarded with
significant cash payments during the year.

Marketing and Customers

ORYX GTL has sold 4.1 million tons or 34.9 million
barrels of premium GTL products to the market and
the feedback from customers has been very positive.
The premium GTL diesel (with its low sulfur, low
aromatics and high cetane number) is used as diesel
blending stock to improve the density characteristics
of marginal barrels and produce low-sulfur diesel,
mainly in Western Europe. GTL naphtha, on the other
hand, is used for the production of ethylene East of
Suez. The company’s customers include oil majors,
steam cracker owners,and traders of these products.

Achievements in 2011
ORYX GTL achieved a world-class safety
performance with a recorded injury rate of only 0.17
for the year. In 2011, the company was granted
ISO 27001 certification in Information Security
Management, and BS 25999 certification in Business
Continuity. A significant improvement in the volume
of final saleable products was also achieved in
2011, with the final average daily production for the
year more than 13% higher compared to 2010. The
plant achieved a 90-day maximum proven rate
of 33,175 b/d. Among the main factors for these
achievements were the additional oxygen supply
from Gasal and an increased focus on optimizing
operations. Positive progress was likewise made to
improve plant reliability, which will deliver further
benefits to the company in the years to come.

Future Expansion Plans

The focus for 2012 will be to continue to improve
the reliability of the plant and, as such, continue
to increase the average production volumes while
controlling and reducing the unit cost. ORYX GTL
will take the opportunity of a major turnaround
in November to complete several technical
improvements to the plant. The company will also
strive to study business opportunities that shall add
value to its shareholders. .

43
 Annual
Report
PEARL GTL
I n July 2004, a Development & Production
Sharing Agreement (DPSA) was signed between
QP and Qatar Shell GTL to develop the Pearl
GTL project in two phases, Pearl-1 and Pearl-2.
This integrated project aims to develop about
1,600 MMSCFD of North Field gas to produce
approximately 140,000 b/d of synthetic fuels
including base oils for manufacturing lubricating
oils.
Drilling and completion activities on Pearl-1 and
Pearl-2 were completed in the third quarter
of 2009 and March 2010, respectively. First gas
from offshore Pearl-1 and Pearl-2 was realized
on 23rd March 2011 and 4th November 2011,
respectively.
Pearl GTL Phase 1 achieved its first wax
production on 14th May 2011 and the first GTL
gasoil was produced on 29th May 2011. The first
commercial shipment of GTL gasoil departed
Ras Laffan on 13th June 2011 and the first
GTL base oil shipment was made in October
2011. His Highness Sheik Hamad Bin Khalifa
Al-Thani, the Emir of the State of Qatar, officially
inaugurated Pearl GTL on 22nd November 2011.
Pearl GTL Phase 2 achieved its first wax
production on 1st December 2011. As of the
end of December 2011, 18 shipments of GTL
products had been made. In 2011, Pearl GTL
produced 133,815 mmscf of gas and 5.9 million
barrels of condensate.
44
 Annual
Petrochemical Industries Report

Qatar Fertiliser Company

(QAFCO)

F ounded in 1969, Qatar Fertiliser Company

(QAFCO) is now owned by Industries Qatar
(IQ) as 75% shareholder and Yara Nederland B.V.
as 25% shareholder.

Since its inception, QAFCO has steered its

way successfully by responding adequately to
the rising global market demand for fertilizers.
Through scientific strategic plans and the
integration of the latest technologies that have
been steadily developed over the years, the
company has raised its production capacity
to 2 mmt/a of ammonia and 3 mmt/a of urea.
Accordingly, QAFCO has become one of the
main producers and exporters of ammonia and
urea in the whole world.

QAFCO’s Performance in 2011

In 2011, QAFCO posted record figures in the
areas of production, sales and profits.

2011 Production & Exports

Production in Exports in Metric

Product
Metric Tons Tons

Ammonia 2,298,260 540,447

Urea 3,217,025 2,910,417

Ammonia markets: India was the main market

with a 47% share, followed by South Korea (20%),
South Africa (16%), Jordan (11%), Taiwan (3%),
Japan (2%), Vietnam (1%) and China (0.5%)

Urea markets: Australia served as the primary

market with a 21% share, followed by Thailand
(13%), Bangladesh, South Korea and the USA
(10% each), South Africa (8%), the Philippines (7%),
India and New Zealand (6% each), Sudan (3%),
Pakistan(2%), and the remaining quantities were
delivered to different destinations.

Marketing
Some of the factors that have propelled QAFCO
to its current leading position in the international
fertilizer market include high-quality products, a
strategic geographic location, efficient logistic
facilities, and reliability in supply.
Deliveries have been made throughout the
world, with India, Jordan, and South Africa of
particular major importance in terms of QAFCO’s
ammonia exports, while Australia, Thailand, the
USA, Bangladesh, South Africa and the Far East
dominate the company’s urea exports.

45
 Annual
Report

Expansions The QAFCO-5 expansion project was

QAFCO-5 and QAFCO-6 Projects
Building on its successful business experience
over the last four decades and encouraged by
the State of Qatar’s vast reserves of natural gas,
QAFCO has taken upon itself the task of drawing
up an ambitious future vision to ensure the
continued development of the company.
In this context, QAFCO started in 2007 the
practical steps in executing the QAFCO-5
expansion project, which came on stream in late
2011, and in 2009, it also started the construction
of the QAFCO-6 expansion project.
inaugurated by His Highness Sheikh Tamim
Bin Hamad Al-Thani, the Heir Apparent, in
December 2011. The project has increased the
company’s annual production capacity to 3.8
mmt/a of ammonia and 4.3 mmt/a of urea,
making QAFCO the world’s largest single-site
producer of both ammonia and urea.
With the QAFCO-6 project expected to be
online by the end of 2012, the company will
further increase its annual production capacity
of urea to 5.6 mmt/a. Consequently, the project
will further strengthen the company’s position as
a key player in the global fertilizer market.

Qatar Melamine Company

W ith a production capacity of 60,000 t/a, the QMC plant was inaugurated by His Highness Sheikh
Hamad Bin Khalifa Al-Thani, the Emir of the State of Qatar, on 12th October 2010. The plant is
the largest melamine plant in the Middle East and one of the largest melamine plants in the world.
The plant will add extra value for the urea produced by QAFCO and boost QAFCO’s profitability.

46
 Annual
Report

Qatar Petrochemical Company Ltd.

(QAPCO)

Q APCO has today grown to be recognized

as one of the largest producers of low
density polyethylene (LDPE) in the Middle East.
The marketing network consists of QAPCO’s
Commercial and Marketing Group, Representative
and Liaison Overseas Offices, QAPCO agents, and
The company produces a wide range of LDPE QAPCO regional and bonded warehouses.
grades suitable to all thermoplastics processing
techniques with various applications, such as In this ever-increasing competitive market, where
packaging films, agricultural films, extrusion and the GCC is evolving to become the global
coating lamination films, high-clarity films, injection petrochemical production hub, the need is greater
molding, foamed and other products that are than ever for suppliers who wish to succeed
widely used all over the world. QAPCO’s LDPE is and accelerate to establish a global marketing
marketed under the trademark Lotrène ®. positioning that delivers excellence in efficiency and
customer service. QAPCO prides itself on establishing
QAPCO was established in 1974 as a joint a global marketing network that leverages our
multinational venture to utilize the associated market positioning versus its competitors. It is very
and non-associated ethane gases from important to realize that the contribution and
petroleum production in line with the industriali- performance of QAPCO’s global marketing network
zation plan of the State of Qatar. are essential and crucial the company’s success;
hence, the utmost level of cooperation and support
QAPCO is jointly owned by Industries Qatar (IQ) is being provided to this network.
with 80% share and Total Petrochemicals of
France with 20% share. QAPCO has already established 30 offices thus
far, and its intention to expand and conquer other
QAPCO’s Plants and Products markets is very solid.
QAPCO’s manufacturing facilities mainly consist
of an ethylene plant with a capacity of 800
kilo ton per annum (KTPA) after the expansion
of the ethylene plant (EP2) in August 2007, two
LDPE plants with a total annual capacity of 400
KTPA, and a sulphur plant with an annual rated
capacity of 70 KTPA. In addition, it has self-suffi-
cient utilities plants and other offsite and auxiliary
facilities such as those for the production
and supply of raw pyrolysis gasoline for SEEF
Ltd. and for the manufacture of linear alkyl
benzene. QAPCO also has facilities to process
the C4+ stream from Q-Chem to convert it into
high-value LPG, which is then supplied to QP.

Different LDPE grades are available from QAPCO

to satisfy the requirements of most thermoplastics
processing techniques, and these are suitable
for applications such as films, pipes, cables and
wires, and other major moulded products having
wide usage all over the world and touching
everyone’s daily life.

Global Marketing Network

QAPCO’s products are currently marketed to
8,000 customers in over 145 countries through
the company’s liaison offices, direct indent sales
agents, and preferred distributors, which represent
the heart and soul of QAPCO’s global marketing
network.

47
 Annual
Report
Qatar Fuel Additives Company (QAFAC)
Q atar Fuel Additives Company (QAFAC) is
a Qatari joint stock company involving
Industries Qatar (50%), OPIC Middle East
Corporation (20%), LCY Middle East Corp. (15%)
and International Octane L.L.C. (15%).
QAFAC was established to build, own and
operate facilities at Mesaieed Industrial City
for the production of methanol and methyl
tertiary butyl ether (MTBE) for sale to customers
worldwide. The QAFAC plant produces 983,330
TPA of methanol and 610,000 TPA of MTBE.
QAFAC’s mission is to be a world-class operation
in the production of methanol and MTBE with a
strong commitment to excellence of quality, cost
competitiveness, environmental protection and
safety.
Production
MTBE
QAFAC’s MTBE plant produces around 1,830
metric tons per day by processing butane and
methanol. The methanol is provided by the
on-site methanol plant and QP provides the field
butane.
MTBE is a colorless, flammable liquid with
a characteristic odor and has an average
octane number of 108. Therefore, it is used as
a gasoline additive that provides clean-burning
fuel to reduce the tailpipe pollution generated
by motor vehicles. At the same time, it also
eliminates the need for blending tetraethyl lead
in gasoline.
METHANOL
Methanol was first produced by wood distillation
in the 1900s and commercial production started
in the 1920s from coal. From the 1960s up to
now, it has been manufactured from petroleum,
naphtha and natural gas.
QAFAC’s methanol is produced from natural
gas provided by QP, via steam reforming and
methanol synthesis. The company’s methanol
plant can produce 2,950 metric tons per day of
US Federal Grade AA methanol.
Methyl alcohol, wood spirit, wood alcohol,
carbinol, and Colombian spirit are other names
for methanol.
Methanol is a clear, colorless, flammable liquid
with a characteristic odor. It is a clean energy
source, as well as a raw material for some of
the everyday items that we use. Within the
petrochemical industry, it is used as a raw
material for the manufacturing of solvents,
formaldehyde, methyl halide, methyl amine,
acetic acid, ethyl alcohol, acetic anhydride,
dimethyl ether (DME) and MTBE.
48

Qatar Vinyl Company (QVC)
Q atar Vinyl Company (QVC) was established
in 1997 as a limited Qatari shareholding
company. The company was inaugurated on
21st June 2001 by His Highness the Emir Sheikh
Hamad Bin Khalifa Al-Thani. The company’s
shareholders are QP (55.2%), QAPCO (31.9%) and
Arkema (12.9%).
Production (in metric tons):
• ethylene dichloride (EDC) 184,800
• vinyl chloride monomer (VCM) 352,600
• caustic soda (CS) 370,700
Operations Highlights
QVC’s production of both VCM and caustic
soda reached one of its highest-ever levels in
2011. The company’s chloralkali plant has been
operated at 28% above its initial capacity, while
49
Annual
Report
60% above the designed production capacity
was reached for the VCM plant.
Marketing
QVC continues to pursue its marketing
strategy, which is to sell most of its products
on a long-term contract basis. Close to 90% of
EDC and caustic soda sales are made on a
long-term contract basis and more than 95% of
VCM is sold on a similar arrangement.
In 2011, QVC products were shipped worldwide
in around 160 vessels. The main destinations
included Australia, South Africa, Southeast Asia
and India for caustic soda, India and Southeast
Asia for EDC, and Pakistan, India and Australia
for VCM.
 Annual
Report
Qatar Chemical Company Ltd.
(Q-Chem)
Q atar Chemical Company Ltd. (Q-Chem)
is a Qatari company owned by Qatar
Petroleum (QP) with 51% interest and Chevron
Phillips Chemical International Qatar Holdings
LLC (CPCIQ) with 49% interest
The Q-Chem facility is a world-class integrated
petrochemical plant capable of producing
high density and medium density polyethylene
(HDPE and MDPE), 1-hexene and other products,
using state-of-the-art technology provided by
Chevron Phillips Chemical, a major integrated
producer of chemicals and plastics. The
Q-Chem facility began operations in 2003.
The Q-Chem complex in Mesaieed Industrial
City is comprised of an ethylene unit capable
of producing 500,000 metric tons per annum
(mtpa), a polyethylene facility capable of
453,000 mtpa, and a 1-hexene unit capable
of 47,000 mtpa. Q-Chem’s assets also include
an acid gas recovery unit, a sulfur recovery
and solidification unit, a bagging and storage
warehouse, and dock facilities.
Qatar Chemical Company II Ltd
(Q-Chem II)
Q- Chem II is a joint venture between Qatar
Petroleum (51%) and Chevron Phillips
Chemical International Qatar Holdings LLC (49%).
The facility has established a world-class high
density and medium density polyethylene (HDPE
and MDPE) and normal alpha olefins (NAO)
plant adjacent to the original Q-Chem plant in
Mesaieed.
The Q-Chem II PE and NAO plants each have a
production capacity of 350,000 mtpa. The plants
utilize Chevron Phillips’ proprietary technology.
The NAO plant produces the full range of
alpha olefins including butene, hexene, octene,
decene and higher molecular weight olefins.
The facility includes a new bagging and storage
warehouse. The Q-Chem II plant started up in
late 2010.
Products
Q-Chem’s polyethylene products are used to
manufacture plastic pipes, rigid and flexible
packaging products, household industrial
chemical/detergent/liquid food bottles, drums
and geosynthetic liners. NAO products, on
the other hand, are widely used as plastic
co-monomers, detergents, synthetic motor oil
and lubricants, fuel additives, functional drilling
fluids, plasticizers and specialty waxes.
Marketing and Distribution
Q-Chem and Q-Chem II are the primary
suppliers of HDPE/MDPE resins from the Middle
East. Marketed under the Marlex® trade name
licensed by Chevron Phillips Chemical Company,
Q-Chem and Q-Chem II are the preferred
suppliers to many customers in China, the
Asia Pacific, Middle East, Europe and Africa.
While many customers are supplied directly
from Qatar, Q-Chem and Q-Chem II have
also established regional warehouses in
China, Singapore, Belgium, Italy, and Spain.
Q-Chem’s 1-hexene and Q-Chem II’s
NAO fractions are marketed under the
AlphaPlus® trade name licensed by
Chevron Phillips Chemical Company.
The primary distribution channel for these
products is via marine chemical tankers
sailing directly from Qatar. Regional tank
farms have been established in Singapore
and Belgium to support the local markets
there. Produced since the first quarter of
2010, AlphaPlus® normal alpha olefins are
quickly becoming the preferred products in
many of their respective market segments.
50
 Annual
Report

Ras Laffan Olefins Company Ltd.

(RLOC)

R as Laffan Olefins Company Ltd (RLOC) is a

Qatari company that is owned by Q-Chem
II (53.31%), Qatofin (45.69%) and Qatar Petroleum
(1%). RLOC has constructed a world-class 1.3
million mtpa ethylene cracker, which is operated
by Q-Chem II on behalf of all RLOC partners. The
ethylene produced by RLOC is transported from
Ras Laffan to Q-Chem II and Qatofin derivatives
units in Mesaieed via a 135-km pipeline. In
Mesaieed, 700,000 mtpa of ethylene is allocated
to Q-Chem with the reminder going to Qatofin.
RLOC began operations in the first half of 2010.

Qatofin Company Limited

Q atofin is a joint venture involving Qapco

(63%), Total Petrochemicals of France (36%)
and QP (1%). Qatofin is designed to produce
520,000 metric tons of linear low density
polyethylene (LLDPE) per year. The ethylene
feedstock required for the LLDPE unit is supplied
by Ras Laffan Olefins Company (RLOC), a joint
venture of Qatofin, Q-Chem II and QP. The
produced ethylene is sent through a pipeline
from RLOC to Qatofin and QChem II.
The Qatofin plant was inaugurated by His
Highness the Emir Sheikh Hamad bin Khalifa
Al-Thani on 24th November 2009. Commercial
operation and export of LLDPE subsequently
started in May 2010. Qatofin’s LLDPE products
are marketed worldwide under the “Lotrene”
brand name, using the strong marketing network
of the company’s shareholders.

51
 Annual
Report
SEEF Limited
S EEF Limited is a semi-government
petrochemical company located adjacent
to the QP Refinery in the industrial area of
Mesaieed. This location has been selected for its
proximity to the source of feedstock and to the
various utilities that the plant uses in common
with the refinery. The complex started production
in March 2006. SEEF is a Joint Venture between
QP and UDC with 80% shareholding by QP and
20% by UDC, a local Qatari company.
Products
The main product of SEEF Limited is linear alkyl
benzene (LAB), which is an important ingredient
in the manufacturing of environment-friendly
detergents. The plant is designed to produce
100,000 metric tons per annum of LAB, with
3,600 mtpa of heavy alkyl benzene (HAB) also
produced as a by-product in addition to normal
paraffin and benzene.
Marketing
SEEF Limited has consolidated its position across
the world through a marketing strategy that is
based on short- and long-term contracts as
per the requirements of its clients. Its current
customers are spread across Southeast Asia,
the Far East, all over the GCC, South Africa,
the Mediterranean, Europe and Mexico. The
company continues to strategically explore new
geographical areas as well as other end-use
segments. This has been facilitated by the
superior quality of its product, which has been
accepted and appreciated by many leading
detergent producers worldwide.
Major Highlights in 2011
SEEF Limited has managed to achieve important
milestones in 2011, including the following:
1) Higher production than planned;
2) Ignificant increase in the company’s
revenue due to excellence in the
marketing of its products and proper
cost management;
3) Remarkable reduction in the quantity
of imported raw materials by maximum
utilization of the available feedstock;
4) 3 million safe man-hours without
lost time injury since the plant start-up
in 2006. The monitoring of the
environmental impact of its industrial
operations is also a priority that the
company undertakes with due care
and respect to the natural ecosystem.
5) Accomplishment of QP-targeted
strategic Qatarization Plan and
achievement of much higher
percentage than planned.
6) Upgrading of SAP system from
version 4.7 to ECC 6 for better work flow
and transparency.
52
 Annual
Industrial Cities Report

Mesaieed Industrial City (MIC)

M esaieed Industrial City (MIC) is located MIC’s Mission is to:

approximately 40 kilometres south of Doha.
• Promote Mesaieed both locally and
In 1996, the MIC Directorate was established
internationally as a preferred investment
as a single-point authority to provide one-stop
location;
services to all businesses and industries
located in Mesaieed, create a strategic land • Modernize and develop utilities, services
development plan for the Mesaieed region, and infrastructure;
and provide common port, marine, industrial,
• Manage the municipal role in Mesaieed
community and infrastructure facilities for
to ensure clean, orderly, and hygienic
the city. MIC is also dedicated to attracting
public facilities, including restaurants, parks,
heavier, medium, light and support industries to
recreation facilities, commercial districts,
complement the existing larger businesses and
etc.
primary petrochemical industries.
• Develop a cohesive multinational
MIC is the leading integrated industrial city in community in Mesaieed;
the State of Qatar, where the major focus is on
the development of industrial projects in the • Cooperate with local industries and businesses
fields of petrochemicals, chemical fertilizers, oil to plan, develop and upgrade the heeavy
refining, natural gas derivatives and metallurgical industries area as well as the adjacent town
industries, as well as supporting numerous small area
and medium-sized industries. MIC is a major
economic centre and a major contributor to
the economy of Qatar, with over 60% of the
country’s GDP flowing through its port.

MIC is home to much of Qatar’s basic building

and construction materials industry. The
relocation of these industries to MIC is well
established and businesses related to this industry
are being accommodated in a new light/
support industrial area within the Mesaieed city
and are serviced with common facilities and
infrastructure.

The city provides a healthy, clean and safe

environment. Professional systems and staff
ensure the safety, security and availability of
integrated social services for residents and
workers, making MIC highly attractive to its
residents and investors.

MIC’s Vision is to: MIC Strategic Master Plan

• Be a world-class industrial city with a focus
on hydrocarbon industrial development in
southern Qatar;
• Be a self-sufficient city providing a high
quality of life for all its residents and workers
by providing modern facilities, a full range
of services, and well-maintained, modern
infrastructure;
• Provide a vibrant, healthy, clean and safe
environment in which to live and work.
MIC has developed a strategic master plan
to guide Mesaieed’s industrial, town, and port
development over the next 25 years. It provides
guidelines for the development of these areas
based on up-to-date market studies to maximize
the utilization of Qatar’s natural resources, land
and interfaces between industries.
Major Achievements in 2011
• Expansion of permanent labor
accommodation and related recreation
facilitiesl;

53
 Annual
Report
• Completion of Phase One of the MIC
housing project (over 1,500 accommodation
units);
• Completion of the construction of two MIC
international school buildings;
• Maximum utilization of the hazardous waste
and domestic waste treatment centers to
serve MIC QP and the light industrial areas
of the country;
• Allocation of land for numerous new light
industrial projects in the metals, engineering,
plastics, chemicals and construction
materials sectors within the light/support
area;
• Completion of the QP Central Office
complex in MIC;
• Construction of a third Gabbro berth and as
well as two container berths;
• Completion of the MIC Multi-Sport Complex.
Major Customers
A wide range of products are produced within
MIC including base gas and petrochemicals,
plastic resins, refined petroleum products,
aluminum and steel, as well as finished
manufactured products. These are supplied to
the local, regional and international markets.
Reasons to Invest in Mesaieed
• Well developed infrastructure and facilities;
• Large, modern and well established 24-hour
serviced port;
• Proximity to Asian and European markets;
• Abundance of energy resources at
competitive prices;
• Open exchange regulations;
• Private and joint venture initiatives with
competitive land lease rates.
Marketing and Development Plans
• Development of the light industries area
for downstream manufacturing and
construction material in line with the
development of the adjacent new port
54

project of the State and Qatar Economic
Zone 3;
• Expansion and development of the
northern, central and southern areas of MIC
port;
• Upgrading the town road networks.
Future Development Plans
MIC is continuously considering expansion plans
to meet the rapid growth and development
of its town, industrial and port areas. Major
infrastructure projects are under design and
construction to upgrade the roads, port, and
other infrastructure within the town, heavy
industries and light industrial areas:
• Roads and infrastructure upgrades and
expansion throughout the town;
• Completion of road and infrastructure
development and upgrades in the industrial
area;
• Beautification and infrastructure upgrades
of all residential area roads;
55
Annual
Report
• Creation of an Ecological Park as an
environmental project;
• Construction of additional labor
accommodation to support the new light
industries expansion;
• Allocation of land for new industrial projects
in the metallurgical, engineering, plastics,
chemicals and construction materials
sectors;
• Development of additional commercial,
residential, office and recreational facilities
to serve the growing town population;
• Upgrading of the existing Sealine Road and
the construction of a new Sealine highway;
• Construction of exhibition and recreation
facility;
• Construction of fire fighting and training
facilities;
• Establishment of an Emergency Command
Centre;
• Establishment of an automotive zone for
heavy vehicle service.
 Annual
Report
Ras Laffan Industrial City
(RLC)
R as Laffan Industrial City (RLC), which is located
80 kilometers northeast of Doha, is developed
by QP as the base for all onshore operations
to support the development and utilization
of the State of Qatar’s North Field gas assets.
It commenced operations in 1996 by initially
providing land, infrastructure and port facilities to
Qatargas 1 (Trains 1, 2, and 3). Since then, RLIC
has evolved into a world-class industrial city,
facilitating the needs of the most technologically
sophisticated natural gas-based industries.
RLC has now achieved its vision of being the
global hub for the supply of clean energy
following the completion of Qatargas’ and
RasGas’ LNG expansion projects, culminating
in the world-scale production capacity of 77
million tons per annum. Other industrial projects
recently completed and which augment RLC’s
industrial base include the Pearl GTL project.
In addition, RLC is now the center of Qatar’s
power generation industry following the recent
commissioning of the Ras Girtas integrated water
and power plant, which is the largest of its kind in
the Middle East.
Main Activities
RLC’s mandate from QP has three core elements,
viz. the planning and provision of infrastructure;
provision of logistics, utilities, facilities and services;
and as a regulator of developments and health,
safety and environment in the city.
In the area of infrastructure, RLC provides
industries with land, roads and common corridors
for pipelines and other utilities’ structures. The Port
of Ras Laffan, which is the largest LNG export
facility in the world, facilitates the marine export
of all the hydrocarbons and sulfur produced
by industries, the import of general cargo and
the support of offshore production operations
in the North Field. RLC also provides various
utilities to industries including desalinated water,
potable water, power, telecoms, seawater
through the Common Seawater Facility, as well
as municipal waste treatment and disposal.
Other services provided include emergency
response coordination, environmental monitoring,
fire-fighting, medical, security and camp
accommodation for designated categories of
the workforce.
56

The Ras Laffan Support Services Area (RSSA),
which covers 3 million square meters in area
and located in the west side of RLC, has been
developed for industries that provide support
services for the oil, gas and petrochemical
industries in Qatar and the region. This area is
being actively marketed by RLC internation-
ally and is being gradually taken up by leading
companies.
RLC is also implementing the Ras Laffan
Emergency and Safety College project in
conjunction with the Ministry of Interior, and
this will be operational in late 2012. This
world-class international college will provide
emergency and safety training to the oil, gas
and petrochemicals industry as well as to civil
defense, aviation and the military in Qatar and
the region.
As a regulator, RLC develops and implements
relevant regulations to ensure that industrial
development activities and industrial operations
are conducted in a manner that safeguards
the health and safety of people and assets and
57
Annual
Report
minimizes impacts on the environment and the
northern community. These regulatory functions
are executed through the provisions of the
land-lease agreement and other State policies
that QP is required to implement in Ras Laffan.
Major Customers
Most of the industrial developments targeted by
QP to utilize the North Field’s current planned
production capacity of 25 billion cubic feet of
gas per day are now complete and include the
following:
a) Qatargas 1, 2, 3 and 4 and RasGas 1, 2,
and 3 which consist of seven production
trains each for a total LNG production
capacity of 77 million tons per annum;
b) Pearl GTL and Oryx GTL with a production
capacity of 140,000 and 34,000 barrels per
day, respectively;
c) Al-Khaleej Gas 1 and 2 with a lean gas
production capacity of 750 million standard
cubic feet per day (mmscfd) and 1,250
mmscfd, respectively;
 Annual
Report

d) Dolphin Energy Limited with a lean gas d) Common Seawater Facility

production capacity of
2000 mmscfd;
e) Laffan Refinery 1 with a refined products
production capacity of 146,000 barrels per
day;
f) Ras Laffan Olefins Company with an
ethylene production capacity of 1.3 million
tons per year;
g) Ras Laffan Helium with a production
capacity of 600 million cubic feet per annum
(mcfpa);
h) Qatar Power, Ras Girtas Power and Ras
Laffan Power with a power generation
capacity of 1025 megawatts (MW), 2730
MW and 750 MW, respectively;
(CSF) phase II category 2
e) Ras Laffan Support Services Area land
development phases 1 and 2
Further Developments Planned
Ongoing
The following major projects are currently
being executed in RLC:
a) Ras Laffan Emergency and Safety College
b) Common Seawater Facility phase III
c) Ras Laffan Port expansion phase 2
d) Jetty boil-off gas recovery facility
e) Marine waste reception and treatment
facility

i) Erhama Bin Jaber Al Jalahma Shipyard, f) RLC multipurpose complex

which is a 1100acre shipyard providing g) Ras Laffan Support Services Area utilities
shipbuilding, repair and maintenance
services. h) Various road network projects

The remaining major projects, which i) New environmental laboratory

are in various stages of implementation, j) New port control tower
include the following:
k) Government and joint forces service buildings
a) Barzan Gas with a lean gas production
l) New RLC southern industrial fence
capacity of 1400 mmscfd;
m) Fire station number 6
b) Laffan Refinery Phase 2 with a refined
products production capacity of Under Development
146,000 barrels per day;
a) Utilization of surplus treated industrial water
c) Two petrochemicals projects involving QP
joint ventures with Shell and QAPCO, b) Hazardous waste facility
respectively; c) Common off-plot facilities/utilities for
d) Qatar Solar Technologies Polysilicon petrochemicals projects
plant;
e) Qatar Helium 2 with a production
capacity of 1300 mcfpa;
f) Ship repair yard (phases 5-6).

Major Achievements in 2011

Projects
The following projects were successfully
implemented in 2011:
a) Phase 1 of the Ras Laffan Port
expansion
b) LNG berth 6
c) Volatile organic compounds
(VOC) recovery facility

58
 Annual
Other Industries and Report
Supporting Services
Gulf Helicopters Company (GHC)

G ulf Helicopters
Company (GHC)
is 100% owned by Gulf
International Services
(GIS), a Qatari joint
stock company in
which QP is the largest
shareholder.

Incorporated in 1970,
GHC has grown
tremendously since its
acquisition by QP in
1998 and it is currently
one of the leading
helicopter operators in
the Middle East region
with its operations
extending to India,
Yemen and Libya. In
2010, the company
also operated in the
Sultanate of Oman
and East Timor on
short-term contracts.

GHC operates under

QCAR Ops 3 and
QCAA Part 145
regulations, and is
approved and fully
aligned with the
requirements of the
European Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA) of the US.
GHC is also an ISO 9001: 2008 certified company.

Company History
The following chronological summary enumerates the history of the company since its inception:

Timeline Development
July 1970 Established and incorporated in the U.K.
(Gulf Aviation 51%; BOAC 32%; BEA 15%)
March 1977 Gulf Air 100%

June 1993 De-registered in the U.K. (Division of Gulf Air)

June 1998 Taken over by QP 100%; purchase of assets/business

December 1998 Issuance of Emiri Decree establishing Gulf Helicopters

January 1999 Incorporated as a Qatari company

February 2008 Taken over by Gulf International Services (GIS) 100%

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The business growth of the company is as follows:

Timeline Development
1970 to date Providing helicopter services in Qatar for offshore operations of all petroleum
companies including QP, RasGas, Oxy, Qatar Gas, Total, Maersk, Dolphin, Anadarko,
Shell, QPD, Wintershall and Talisman
1987 to 1999 Operated in Oman

1989 Operations commenced in Yemen.

1994 (Sept.) Operations commenced in India.

1998 to 2006 Operated in Iran

2000 to 2006 Operated in Sudan

2007 Operations commenced in Libya

2007 Introduced Helicopters Emergency Medical Services (HEMS) in Qatar for the first time
in collaboration with the National Health Authority and Hamad Medical Corporation
Added one AW 139 to the fleet
2008 Added 3 more AW 139s to the fleet

2009 Added 3 more AW 139s to the fleet

2010 Added 5 more AW 139s to the fleet

2011 Added 1 more AW 139 to the fleet

2011 Started operating AW 139 full motion flight simulator, making it the 1st company in the
world to own and operate such simulator.

Company Operations Future Plans

GHC has a fleet of 38 helicopters, consisting of
two S-92, 13 AW 139, 17 Bell 412s, five Bell 212s,
and one Bell 206. The company offers services
such as VVIP transport, offshore support, onshore
transport, seismic support, VFR & IFR, load lifting,
photo flights, helicopter emergency medical
services and aircraft management.
GHC’s operations continue to expand as the
company reaches out to new geographical
areas and as it increases its scope of services.
The company is targeting new markets including
Australia, Brazil and Europe as well as new
growth areas in the State of Qatar in line with
the country’s growing exposure to major cultural,
sports and international events, including the
FIFA World Cup – Qatar 2022.

GHC strives to keep up with the modernization

of its fleet in order to bring in the latest
technologies available in the market. In addition,
it is pursuing other related business opportunities
consistent with its growth plan.

GHC strives to keep up the modernization of its

fleet in order to bring in the latest technologies
available in the market. In addition, it is pursuing
other related business opportunities consistent
with its growth plan.

60

Qatar Steel Company (QSC)
Q atar Steel’s performance in 2011 continued
to be excellent, following its great
performances in the preceding years. Total
production reached 2,213 thousand metric
tonnes (KMT) of DRI/HBI, 2,038 KMT of molten
steel, 2,005 KMT of billets, 1,819 KMT of bars and
126 KMT of coils. Total shipments during the year
were 76 KMT of billets, 186 KMT DRI/HBI, 1,827
KMT of reinforcing steel bars and 134 KMT of
coils.
Qatar Steel’s consolidated net income was QR
1,625 million in 2011 vs. QR 1,374 million in 2010.
Qatar Steel is totally committed in implementing
the projects incorporated in its growth plan.
The plan includes increasing production
capacity by enhancing backward integration
through overseas joint venture projects in iron
ore mining and pelletising to ensure a steady
supply of the raw materials needed for higher
volumes of finished products. The Calcined Lime
Project was completed and commissioned
on 26th December 2011. The construction of
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Annual
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the new Green Field Steel Melt Shop Project
(EF 5), which is designed to produce 1.1 MTPA
of billets, is progressing well and on schedule,
with commercial production planned in the first
quarter of 2013. The required financing for the EF
5 Project was secured on a subordinated term
basis from a consortium of local and regional
banks.
An affiliate of Qatar Steel — Foulath and its
associated companies in Bahrain — faced
operational difficulties as a result of an adverse
market and a shortage in the required iron ore.
South Steel Company, which is another affiliate
of Qatar Steel and is based in Saudi Arabia,
is winding up its construction activities and
planning to start its commercial production in
the second quarter of 2012.
A joint venture agreement was signed by
Qatar Steel and Qatar Mining Company for the
purpose of developing integrated steel plants in
association with the Government of Algeria.
 Annual
Report
Qatar Plastic Products Company
(QPPC)
Q atar Plastic Products Company (QPPC)
was established on 19th September 1998.
Commercial production commenced in August
2000, and the plant was officially inaugurated
on 21st November 2000 by His Excellency Mr.
Abdullah Bin Hamad Al Attiyah, who was then
the Minister of Energy and Industry. The company
is equally owned by Qatar Petrochemical
Company (QAPCO), Qatar Industrial
Manufacturing Company (QIMCO) and FEBO
s.p.a. of Italy.
Around 90% of the company’s production is
sold to the local market, while the balance is
marketed in other Gulf countries and in Europe.
The production facility is located in Mesaieed
Industrial City, which is about 40 kilometres south
of Doha.
Main Activities
QPPC produces plastic film for industrial
packaging using the blow extrusion process. All
operations are controlled by a sophisticated
computerized system that automatically checks
the quality of the film. The products can be
produced from different kinds of polymers to
satisfy customers’ requirements. Printing is done
using Flexographic printing lines up to 6-colours,
thus ensuring excellent quality of printing.
The products are tested by QPPC’s quality
control department. An analysis certificate
detailing the composition, dimension and
mechanical properties of the product is
provided with every delivery.
Safety data sheets and Certificate of Conformity
are supplied upon request.
Certified under ISO 9001:2008 Quality
Management System, QPPC’s products are
extruded in modern blow film lines.
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Products Directors along with the leadership of the QPPC

The company produces the following products:
• FFS (form, fill and seal) film
• Shrinkable hood
• Shrinkable film
• Construction foil (polythene sheet)
• Polyethylene sleeving
• Greenhouse and agricultural film
• Top open bags
• General purpose film
• Heavy duty trash bags
Environment
The preservation of the natural environment
is one of QPPC’s highest priorities, and the
company genuinely understands the fact that
our environment is an irreplaceable asset.
Management, the company achieved major
accomplishments in 2011:
• QPPC had exceeded 10, 000 metric
tons in production for the first time
since its inception. It recorded a total
production output of 10,400 metric tons
in 2011, resulting in record-breaking sales
compared to previous years.
• Printing Line Upgrade: The old printing line
was dismantled during the first week of May
2011 and was replaced by a new 6-colour
printing line, in order to serve the growing
demand for FFS Film in the region.

Since the establishment of QPPC, a plastic waste

recycling unit has been installed to cater to the
waste polyethylene and other plastic films being
produced. The recycling unit transforms these
production wastes into a usable raw material
and later being used to produce trash bags and
other products.

QPPC is fully compliant with all applicable

international environmental laws and Qatari
environmental measures in protecting natural
resources.

QPPC News:
With the guidance of the QPPC Board of

Qatar WOODEN Products Company

(QWPC)

I n line with the shareholders’ vision for economic diversification along with the government’s strong
support for the development of small and medium enterprises (SMEs), the QPPC management
looked into different options for diversification and stability. Subsequently, management proposed
to build in Mesaieed a modern plant named Qatar Wooden Products Co (QWPC) and this was
approved by QPPC shareholders.

The QWPC would house a fully automatic wooden pallet production line along with a heat treatment
facility, and it will have the capacity to produce up to 1.6 million units of wooden pallets per year.
QWPC’s production would serve the wooden pallet requirements of QAPCO, Q-Chem I and II,
QATOFIN and the soon-to-be-built Qatar petrochemical complex. Equity sharing for the QWPC stands
at equal percentage of 33.3% among the three QPPC shareholders: QAPCO, QIMCO and FEBO.. The
QWPC is expected to commence production in August 2012.

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Qatar Aluminium (Qatalum)

Q atar Aluminium (Qatalum) is pursuing

industrial diversity for Qatar and its people
by actively creating a future of environmental
sustainability and economic opportunities, while
simultaneously building the foundation for a
sustainable, knowledge-based industry.
products reach the entire global community.
In July 2010, Qatalum was awarded with an ISO
9001:2008 certificate and it is currently working
towards certification to ISO/TS 16949:2009, the
prescribed standard for the automotive industry
supply chain.

The Smelter Environment

Qatalum produces 585,000 tons of premium- Qatalum’s highly efficient technology for
quality aluminium per annum. The smelter facility aluminium reduction boosts productivity and sets
includes a carbon plant and a state-of-the-art new standards in environmental performance by
product casthouse, producing value-added reducing the company’s carbon footprint and
premium aluminium products such as extrusion spotlighting waste management and emission
ingots, foundry alloys and standard ingots that reduction. Process gases from the reduction
meet the most stringent quality standards of its process go through dry and wet scrubbing in
global client base. fume treatment plants to ensure that emissions
meet international air quality standards, making
The company’s infrastructure includes an Qatalum one of the most environmentally
inbound berth at the MIC port with storage advanced primary aluminium smelters in the
facilities to handle the raw material imports of world.
alumina, coke and pitch. The Qatalum smelter
is also equipped with a captive power plant Qatalum Production System
with a capacity of 1,350 megawatts to supply The Qatalum Production System (QPS) is
all its electricity needs. Qatar Petroleum delivers implimented throughout the entire Qatalum
approximately 200 million standard cubic feet of organization including operating units, support
natural gas per day to Qatalum’s power plant. functions and management and enables its
people to drive for operational excellence.
Milestones Qatalum has a dynamic and diversified
On 4th December 2009, Qatalum cast its first workforce, representing over 37 nationalities.
batch of foundry alloy ingots from re-melt By using reliable technology and processes,
and this was followed by the first foundry alloy performance is improved through the continuous
customer shipment on the 18th of December improvement of cost, quality, volume and HSE.
2009, Qatar’s National Day.
Two days later, Qatalum’s
first electrolysis cell started
production of liquid
aluminium metal. This marked
the historic beginning of
aluminium production and
exports from the State of
Qatar, confirming Qatalum’s
ability to deliver its product
within budget and with an
excellent environmental
and safety standard. Full
production capability was
reached in September 2011.

Used in a variety of industries

including automotive,
construction, engineering
and manufacturing,
Qatalum’s aluminium

64

Qatar Petroleum International Ltd. (QPI)
Q PI’s strategy for growth is focused on
businesses which have a strong fit with
QPI’s objectives of value creation and optimal
risk-adjusted returns, and 2011 was an important
year in pursuing these objectives.
2011 Activities
• For the Longan Vietnam project, QPI has
planned the signing of the Investment
Agreement in early January 2012 to be
followed by the signing of a feedstock
supply agreement with Tas weeq and a joint
venture agreement with SCG/Petro Vietnam
in February 2012.
• QPI continues to develop other downstream
projects in China, which are in different
stages of the feasibility study. The site
selection issue has already been resolved
for its refining and petro chemical project in
China.
• QPI’s Downstream Directorate continues to
explore other downstream opportunities in
Asia and Africa.
• QPI Upstream has farmed-in two onshore
exploration blocks in Mauritania (Blocks
Ta7 and Ta8). Total, with a 60% interest, is
the operator of the blocks, with QPI and
Sonatrach each holding a 20% interest.
In 2010, the Total Mauritania joint venture
drilled one exploration well, with the results
still currently under assessment. Technical
preparations are underway for an other
exploration well in 2012.
• As part of achieving QPI’s upstream strategy,
various Memoranda of Understanding have
been signed around the globe particularly
with international and national oil
companies and governments to ensure
the development of potential investment
opportunities.
• QPI’s Gas and Power Group (G&P) focuses
on managing the three LNG regasification
plants of QP (South Hook in the UK, Golden
Pass in the USA, and Adriatic in Italy, all
of which are collectively known as the
“Terminals”). G&P is stewarding these assets
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Annual
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to achieve QPI’s strategic goals and to
realize optimal returns to QP and the State
of Qatar. G&P will affect this by continuing
to handle the duty and maintain the
country’s interests as Qatari shareholders
in the Terminals in all business aspects. An
example of this is the possible South Hook
power co-generation project currently
under discussion.
• In addition to potential GCC power
generation projects, G&P is actively pursuing
investments in other related opportunities,
especially those that enhance the value of
Qatari LNG.
• QPI had signed an MoU agreement with
Centrica plc to actively pursue energy
related invest ments together.
Future Plans
As part of its ongoing growth strategy, QPI will
continue to:
• Build a balanced upstream portfolio of
exploration, development and production
assets;
• Monetize future Qatari LNG and gas
through investments in power generation
and other midstream assets;
• Investigate opportunities to monetize
available crude oil, condensate and
LPG production through investments in
world-class petrochemical/refinery facilities
abroad.
QPI’s focus in 2012 will be on building its
upstream portfolio through the acquisition of
production and development-oriented assets,
and QPI Upstream is actively pursuing these
investments.
 Annual
Report
Gulf Drilling International Ltd. (GDI)
G ulf Drilling International Ltd. (Q.S.C.) (GDI) is a
world-class provider of safe and innovative
drilling services. GDI was established in May 2004
and specializes in the provision of onshore and
offshore drilling services to major oil and gas
companies in Qatar.
GDI started as a joint venture between Qatar
Petroleum (QP), and Japan Drilling Co. Ltd.
(JDC), a Japanese drilling company with more
than 40 years of offshore experience, with a
paid-up capital of US$103.2 million. In July 2007,
QP acquired a further 25% of JDC’s shares,
raising its ownership in GDI to 70%. In February
2008, the shares of QP were transferred to Gulf
International Services (GIS), which owns 100% of
shares in Gulf Helicopters and Al Koot Insurance
Company, in addition to GDI.
GDI is a growth-oriented company.
In just eight years (from 2004 to
2012), GDI’s rig fleet has grown to
ten and its workforce has increased
from 100 to 890 employees,
including 84 Qatari nationals,
equivalent to 10% of the total
workforce. Its current operating
rig fleet consists of five offshore
jack-up drilling rigs, four land rigs
and one accommodation jack-up
rig. GDI has placed an order to
build two new jack-up drilling rigs
in Singapore, and these will be put
into operations by early 2014 and
2015, respectively. In addition, two
new land rigs are currently being
constructed in the U.S. and are due
for delivery in September 2012 and
December 2012, respectively, in
Doha.
GDI currently holds 45% of the offshore rig
market and 100% of the onshore rig market
share in the State of Qatar. The company has
also diversified into other growth areas, such as
accommodation services, and it is also pursuing
the provision of lift boat services to complement
its existing operations.
GDI’s Achievements in 2011
GDI enjoyed a very strong year in 2011 and
achieved several significant milestones and ac-
complishments in the following areas:
• GDI finished 2011 with its best safety record
ever with a combined Total Recordable
•
Incidents Rate (TRIR) of 0.51 compared to
the IADC average of 0.70.
GDI achieved its lowest ever recordable
downtime results.
• GDI signed a one-year contract extension
with QP for Al-Zubarah.
• GDI received the most improved rig award
for Al-Khor from Shell in their Global Rig
ranking scheme, placing the company in
the upper quartile of Shell’s global rig fleet.
• GDI added a new accommodation
rig, “Zikreet,” to its fleet, and it signed a
long-term contract with RasGas.
• It completed life extension refurbishment
work for Al-Doha.
• GDI reached its best ever Qatarisation
results with over 10% of the current
workforce comprising of Qatari nationals.
• GDI participated in the 20th World
Petroleum Congress (WPC) exhibition, the
first ever to be held in the Middle East.
GDI’s Future
GDI has a bright and exciting future ahead,
having laid a solid foundation for continued
growth, expansion and profitability. The
company is embarking on a USD$0.5-billion
expansion plan. It has begun construction on
two hi-spec premium jack-up rigs, which are
currently being constructed by Keppel FELS. GDI
has also firmly placed an order with LANCO
in the U.S for the construction of two 1,000HP
work-over land rigs, which once completed will
start work for QP later this year. The expansion
of the GDI fleet will allow it to continue to grow
its market share in Qatar and decrease the
average age of its rig fleet.
GDI has also successfully made its first steps
into its ambitious diversification plan. It has
recently acquired “Zikreet,” a drilling rig that
has been converted for accommodation duty.
The company has further plans to build on the
success of Zikreet and it plans to pursue other
opportunities with the intent of becoming a
leading jack-up accommodation services
provider in Qatar.
With GDI’s fleet currently working at 100%
utilization and with the recent upward turn in
day rates, the next few years are set to be very
promising for the company. When the new
drilling rigs enter its fleet in 2014, GDI’s market
share is set to rise to over 50% with five state-of-
the-art cyber rigs, which will be able to drill the
most complex wells in Qatar.
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 QATAR PETROLEUM INVESTMENT PORTFOLIO
70%
RASGAS 3
RLOC
52.5% 70%
100%
44.5% QAFCO SOUTH HOOK
QP RASGAS 3 GAS
67.1% 67.5%

35.6% RASGAS 2 SOUTH HOOK

51% 51% 70% LNG TERMINAL
QATOFIN
70% 63%
70%
QCHEM 2
QCHEM 1 RASGAS
RASGAS
COMPANY
100% 100%
INDUSTRIES
QATAR RASGAS 1 GROUP OF GOLDEN
QP GAS QP LNG
PETROCHEMICALS COMPANIES TRADING SERVICES
PASS LNG
TERMINAL
QG II QG II

100%
56%
FERTILIZERS
70% 93% 100% QPI
QATAR US
TERMINAL
70%
QAPCO

INDUSTRIES BARZAN GAS GOLDEN

QATAR COMPANY LNG 100% PASS LNG
73% TERMINALS PIPELINE

QTL US

35% QATAR VINYL

COMPANY
HOLDING
100%
LIQUEFIED 100%
QAFAC
NATURAL GAS QTL US
QATAR SERVICE
TERMINAL COMPANY
COMPANY

50%
22%
ASTAD
51% 70%
ADRIATIC
TERMINAL
51% QATAR GAS
OPERATING
QATEX

51% ORYX GTL

67.5%
30.5%
OTHER LAFFAN
REFINERY
65%
INVESTMENTS GASAL QATAR GAS
QATAR GAS 2

QATAR GAS
UPSTREAM
GROUP OF COMPANIES
100%
GULF
50% 100%
INTERNATIONAL
AMWAJ METALS
30% SERVICES
QP QATAR GAS (3)
AL SHAHEEN 68.5%
WEATHERFORD
AL KOOT 30% 65%
QATAR HOLDING
AL SHAHEEN 100% QATAR GAS 3
100% INTERMEDIATE
INDUSTRIES 100% HOLDING 70% INDUSTRIES
QATAR QATAR GAS QP QATAR GAS (4)
DOWNSTREAM
50%

21% 30% QATALUM

50% 70% SUBSIDIARIES

GULF DRILLING
INTERNATIONAL
GULF
HELICOPTERS 70%
ALSHAHEEN GE QATAR GAS 4 JOINT VENTURES
SERVICES
COMPANY QASCO
80% 100% 100% SUBSIDIARIES OF QP SUBSIDIARIES

SEEF AL SHAHEEN AL SHAHEEN JOINT VENTURES OF QP SUBSIDIARIES

ENERGY ENERGY
SERVICES (UK) SERVICES (US)

www.qp.com.qa Effective shareholding of Qatar Petroleum as of December 2011