QP Annual Review 2016

His Highness
Sheikh Tamim Bin Hamad Al-Thani

The Emir of the State of Qatar
His Highness
Sheikh Hamad Bin Khalifa Al-Thani
The Father Emir
1
His Highness
Sheikh Abdullah Bin Hamad Al-Thani
The Deputy Emir of the State of Qatar
1
CONTENTS
Message from the Chairman 10

Message from the President & CEO 12
Board of Directors 15
QP Management 16
About QP 17
Maximizing Contribution 18
Business Development 20
- Joint Ventures and Partnerships 20
- International Ventures 20
- Solar Power 22
- Power Generation 22
- QP Around the World 22
Harnessing Resources 23
Oil and Gas 24
North Field 26
- North Field Alpha 26
- Barzan Gas Project 26
- Dolphin Project 26
- Pearl GTL 27
- Al-Khaleej Gas 27
Offshore Field Development 28
- Offshore Operations 28
- Al-Shaheen Field 29
- Bul Hanine Field 30
- Maydan Mahzam Field 30
- Al-Khalij Field 31
ANNUAL REVIEW 2016 7

Production Sharing Agreements 31
- Idd El-Shargi Field 31
- Al-Karkara & A Structures 32
- Al-Rayyan Field 32
- El-Bunduq Field 32
Dukhan 33
Halul Island 37
Exploration Activities 38
Drilling 39
Petroleum Technology 42
Adding Value 45
Downstream Development 46
Refining 47
Mesaieed Operations 53
Oryx GTL 53
Natural Gas Liquids (NGL) 54
Bringing Energy to the World 57
- QPSPP 58
- Ocean LNG 59
Industrial Cities 60
- Ras Laffan Industrial City 61
- Mesaieed Industrial City 62
- Dukhan Concession Area 64
Operating Responsibly 65
Corporate HSE & Quality 66
Promoting Health and Safety 67
8 ANNUAL REVIEW 2016

The Environment & Climate Change 69
Supporting Our Communities 72
Enabling People 73
- Our People 74
- QP People Agenda 74
- Qatarization 74
Business Support 76
- Projects, Engineering & Procurement Services 77
- Finance & Planning 78
- Healthcare 79
- ICT and Cyber & Information Security 80
- Facilities Management 84
- Legal 84
- Internal Audit 86
2016 Highlights 88
QP Investment Portfolio 96
On the Cover:
A view of Ras Laffan Industrial City,
with the Common Seawater Facility
shown in the foreground

MESSAGE FROM THE
CHAIRMAN

The year 2016 began with oil prices dipping to one of the lowest levels in recent years. OPEC’s
persistence, particularly in the last quarter of the year, has managed to defuse some of the market
volatility and move prices above 50 dollars per barrel. Qatar, as the President of OPEC, has played an
active role in helping stabilize the market.
The energy sector’s adjustment to the new market realities has given our industry the opportunity to
plan for the next phase of growth, particularly as demand continues to grow and as energy remains
central to economic growth. Most importantly, it gave the industry the chance to see how it can sustain
its own growth in a low oil price environment.
During 2016, Qatar Petroleum continued to craft its course through the new market dynamics and
trends. It worked in earnest to enhance its competitiveness and to maintain its leading position as a
leader in the global liquefied natural gas industry. Most importantly, Qatar Petroleum has managed to
preserve its global reputation as an energy provider of choice and a most reliable and trusted partner.
Meanwhile, Qatar’s energy sector has continued its major contributions to the growth and sustainability
of the country’s economy. It also continued to meet Qatar’s growing demand for energy and to plan for
future demand.
There is no doubt that these achievements could not have been possible in such circumstances, had it
not been for QP management’s efforts in creating a stronger more motivated organization in the
aftermath of a very successful restructuring program. The cost and asset optimization has enabled the
new Qatar Petroleum to remain focused on its core business and to ensure a sustainable and enhanced
added value to the State of Qatar.
The organization itself witnessed tremendous changes that were designed to streamline its operations
and prepare it to undertake a more challenging mission. With new marketing capabilities, Qatar
Petroleum is now equipped and ready to enhance its competitiveness and ability to deliver superior
integrated products and services to the world.
There is no doubt that Qatar Petroleum has successfully faced the challenges that were posed during the
past two years, and that it continues to build new blocks of success as it leverages its full potential and
draws from its strength and expertise. To this I must add that we owe a debt of gratitude to His Highness
the Emir, Sheikh Tamim bin Hamad Al-Thani, whose wise leadership and unlimited support have enabled
Qatar Petroleum to move from one success to another.
I am confident that Qatar Petroleum will continue to enhance its competitive position on the global
energy map by capitalizing on its achievements and by realizing its vision of becoming one of the best
national oil companies in the world, consolidating its roots in Qatar and a strong international presence.
I would like to thank Qatar Petroleum’s management and employees for their commitment and devotion
to this great institution and to their efforts in the advancement of Qatar’s oil and gas industry.
Dr. Mohammed bin Saleh Al-Sada

Minister of Energy and Industry
Chairman, Qatar Petroleum

MESSAGE FROM THE
PRESIDENT & CEO

The year 2016 has witnessed the endurance of a challenging global energy environment, characterized
mostly by slow growth and low oil prices.
Having overcome the initial shock of the previous year, energy companies across the globe soon began
an effort to readjust to the new realities, and to create the critical balance between sustaining their
growth and meeting demand that was growing during a market downturn.
For Qatar Petroleum, it was already ahead of the curve since the end of 2014 when we began to
implement an ambitious restructuring program that focused on reconfiguring our business model,
implementing organization-wide cost cutting, increasing efficiency, improving our performance, and
seeking greater return on our investments.
Having completed the program in 2015, our attention was focused during 2016 on moving forward with
direct focus on our core business and with increased attention to the energy sector’s new global
business environment. We had one aim in sight: to deliver on our new corporate vision “to become one
of the best national oil companies in the world, with roots in Qatar and a strong international presence.”
One effort in that direction was to rebuild Qatar Petroleum’s marketing arm. In June 2016, we
announced the integration of Qatar International Petroleum Marketing Company Ltd. (Tasweeq) into
the Qatar Petroleum family with the aim to deliver superior integrated products and services across the
entire oil & gas value chain. The integration, which involved transitioning Tasweeq’s employees, assets
and customer relationships into the Qatar Petroleum organization, would leverage our combined
technical, commercial and financial capabilities and enhance our ability to offer superior integrated
products and services in an ever more competitive and demanding market environment.
This was followed by another strategic decision to integrate the activities of RasGas and Qatargas
operating companies under a single entity, named Qatargas, which will operate all of the ventures
currently being operated by both entities. The integration will create a unique global energy operator in
terms of size, service and reliability, acting as the single face for Qatar’s LNG business while at the same
time creating even higher value for our stakeholders, enhancing our competitive position and
upholding the best interest of the State of Qatar.
2016 witnessed another important milestone: the conclusion of a year-long competitive process for the
operation and further development of Al-Shaheen offshore oil field that would ensure the highest
possible financial return to the State of Qatar. The establishment of North Oil Company, which will be
entrusted with the further development and operation of the field, was certainly a very successful
conclusion of that process.
It is important, in this respect, to stress that the biggest success of the process was reflected in the
strong and serious technical and financial offers we have received during an industry downturn, which
is a true testament to Qatar’s attractiveness as well as its ability to ensure the future successes of its
development strategy, including that of its strategic natural resources.

Qatar Petroleum has continued its efforts during 2016 to take its place as one of the leading energy
companies in the world by announcing the establishment of Ocean LNG Limited. The new company will
help enhance Qatar’s LNG industry by becoming a global LNG marketing arm of future international LNG
supply portfolio sourced outside of the State of Qatar. Our position as a global energy leader was further
enhanced by a new and significant milestone with the loading of the 10,000th LNG cargo from Ras
Laffan Port since the first loading in 1996. It also further solidifies Ras Laffan Port’s leading position as the
premier port facility for cleaner energy.
We have also worked to enhance our strategic objectives through a number of transactions to expand
our global footprint and create bigger and better business opportunities. In February 2016, Qatar
Petroleum acquired a participating interest in three deep-water offshore leases in the Kingdom of
Morocco. This was an important step in our international upstream activities.
Our strategy to focus on our core businesses in the oil and gas industry continued to take prominence.
In this effort, Qatar Petroleum announced it will hand over the management and operation of some
areas within its concession in Mesaieed Industrial City to the Economic Zones Company Qatar
(Manateq). The handover, which is planned to take place on the 1st of January 2017, will enable Qatar
Petroleum to focus on its core business activity and to entrust non-core business activities to specialized
companies in their respective fields of expertise.
As we look at the year that has passed, we have a sense of achievement in what was accomplished as we
faced the challenges and set new milestones on the journey for a better future for the State of Qatar
under the guidance and wise leadership of His Highness the Emir, Sheikh Tamim bin Hamad Al-Thani.
We look forward to more achievements and more success.
Saad Sherida Al-Kaabi

President & CEO

BOARD OF
DIRECTORS
H.E. Dr. Mohammed Bin H.E. Sheikh Ahmed H.E. Ali Shareef Al
Saleh Al-Sada bin Jassim Al-Thani Emadi
Minister of Energy & Industry Minister of Economy Minister of Finance
Chairman and Commerce Member
Vice Chaiman
H.E. Dr. Ibrahim Hamad Rashid Nasser Khalil

Al-Ibrahim Al-Mohannadi Al-Jaidah
Member Member Member
Saad Sherida
Al-Kaabi
QP President & CEO
Member

Saad Sherida Al-Kaabi President & CEO
Ahmad Saif Al-Sulaiti Executive VP, Operations
Khalid Said Al-Rumaihi Executive VP, Field Development & Exploration
Mohamed Salem Al-Marri Executive VP, Projects, Engineering & Procurement Services
Jassim Mohammed Al-Marzouqi Executive VP, Commercial & Business Development
Abdul-Rahman Ahmad Al-Shaibi Executive VP, Finance & Planning
Abdulaziz Mohammed Al-Mannai Executive VP, Human Capital
Mohammed Nasser Al-Hajri Executive VP, Downstream Development
Abdulla Ahmad Al-Hussaini Executive VP, Marketing
Abdulaziz Jassim Al-Muftah VP, Industrial Cities
Nabeel Mohammed Al-Buenain VP, HSE & Business Services
Mohammed Abdul-Qader Al-Khori Director General, Industrial Security
Ali Nasser Telfat Corporate Manager, CEO Office
Mohamed Essa Al-Mannai General Counsel and Board Secretary
Adel Abdulla Al-Baker Corporate Manager, Internal Audit

ABOUT
QP
Qatar Petroleum (QP) is an integrated national oil is bound to the highest levels of sustainable
corporation that stands at the forefront of efforts human, socio-economic, and environmental
for the long-term sustainable development, development in Qatar and beyond.
utilization and monetization of oil and gas
resources in the State of Qatar.
In its efforts to become one of the best national
oil companies in the world, QP’s activities and
those of its subsidiaries and joint ventures
encompass the entire spectrum of the oil and gas
value chain locally, regionally, andinternationally.
They include the exploration, refining, and
production, as well as the marketing and sales of
oil and gas, liquefied natural gas (LNG), natural
gas liquids (NGL), gas-to-liquids (GTL) products,
refined products, petrochemicals, fertilizers, steel
and aluminum.
QP’s operations and activities are conducted at
various onshore locations, including Doha, Dukhan
and the Mesaieed and Ras Laffan Industrial Cities,;
and at various offshore areas, such as offshore
production stations, drilling platforms, Halul
Island, and the North Field, which covers an area
of 6,000 square kilometers and is the largest
single non-associated gas reservoir in the world.
The utilization of this field’s massive reserves
has become a primary national goal to continue qatar-petroleum
the development and prosperity of the country.
QP pays the utmost attention to the health and qatarpetroleum
safety of its employees, contractors, visitors and
the local communities where it operates. From
drilling to construction and from operations to qatarpetroleum
decommissioning, QP’s health, safety and
environment policy forms an integral part of the
corporation’s daily business and long-term qpqatar
planning.
Qatar Petroleum is committed to contribute to qatarpetroleum
a better future by meeting today’s economic
needs, while safeguarding our environment
and resources for generations to come. Thriving www.qp.com.qa
on innovation and excellence, Qatar Petroleum

9
MAXIMISING
CONTRIBUTION
In the aftermath of a very extensive and successful prudently manage the hydrocarbon reserves of
re-organization and optimization program that the State of Qatar, meet the domestic oil and gas
ended in 2015, Qatar Petroleum worked demand in a cost-effective manner, and develop
throughout 2016 to cultivate deeper roots for a a highly capable and motivated workforce across
stronger, more focused, and efficient the whole of QP with special emphasis on Qatari
organization. The corporation moved forward development.
with strength and determination to achieve its
This will be done by excelling in the safe delivery of
new vision “to become one of the best national
our major projects, operational excellence in our
oil companies in the world, with roots in Qatar
assets and functions, the management of our
and a strong international presence.”
major contractual arrangements with our partners,
QP has also engaged in various endeavors to the achievement of world-class standards of
realize better yields from Qatar’s resources, health, safety and environmental protection, and
achieve higher monetization levels, and deliver the continued growth of QP’s international
its commercial and growth objectives. upstream and LNG business.
This meant a continued and determined effort to

maximize contribution and to position QP as a Corporate Governance and
leading and competitive global energy producer Compliance Framework
with greater benefits for Qatar and the world. To
In 2016, QP developed and commenced
this end, QP saw the need for a strategic revision
implementation of its Corporate Governance and
that would set the direction and identify the key
Compliance Framework, a key part of supporting
priorities needed to achieve our vision and
the realization of QP’s new corporate strategy.
corporate objectives.
The framework focuses on the transformation of
QP has embarked on developing the details of a governance in QP, the governance and oversight
new Corporate Strategy based on a deep analysis of joint ventures and subsidiaries, the procedural
of the global economy, the state of the oil & gas framework underlying corporate strategy
demand and supply, competitor analysis, and an themes, and the identification, mitigation and
extensive SWOT analysis period. The strategy management of the compliance and regulatory
consists of a number of themes and key risks affecting QP.
enablers that will guide QP towards the
achievement of its vision and objectives. The framework establishes governance for
effective implementation, oversight, monitoring
These objectives set the bar high for the next era of and continuous improvement of an ethics and
successes and achievements and help guide our compliance culture in QP, which will assure
corporation on the path of achieving its vision. integrity of process, compliance with QP policy
They will also help provide the state with a
and procedural framework as well as the
reliable and sustainable cash flow from a range
of business interests. But, most importantly, they management of international regulatory
will enable QP to overcome the very different requirements in line with international and
challenges of the coming decades. industry practices.
Maximizing contribution necessitates that we

QP is also working to update and implement • Process to ensure mitigation and mitigation
a new code of ethics and conflict of interest plans are adequately recorded, monitored and
regulations. One of the initiatives involves reported;
implementing an integrated Business Ethics &
• Risk appetite dimensions and metrics;
Integrity Management Framework (BE&IMF).
• Processes to quantify risk and compare it to
established risk appetite criteria;
Risk Management Landscape
• Reporting methodologies and mechanisms at
Managing risk is a key priority for QP. Enterprise
various levels in the organization;
Risk Management (ERM) is a structured approach
to managing all business risks. It is an integral • ERM training concepts to ensure competency
component of QP’s management processes in its and awareness at all levels.
pursuit of value creation which is at the heart of
reinforcing decision making and a risk-aware
culture across the organization.
ERM has established a centralized corporate-level
ERM division to act as a “center for excellence” to
provide advice, guidance and support to Risk Strategy
implement a comprehensive framework. The QP and Appetite
ERM framework is composed of eight critical
elements which address strategic, financial,
operational and Compliance risks across all QP’s
business. Risk Link to
Identification Risk Decision
QP’s ERM approach identifies top risks based on and Mitigation Making
likelihood and impact criteria, assesses such Measurement
risks based on risk assessment matrices,
establishes appropriate mitigation measures.
Significant risks to corporate objectives are
monitored and reported on a regular basis. Organization & Governance
During 2016, a major initiative was undertaken to

streamline and enhance the tools and Systems
methodologies used for risk management to
ensure adherence to top-level industry standard
corporate ERM Frameworks. Some areas included Risk Reporting
in the design are:
• Interfaces with risk management sub-frame
Risk Culture
works and major decision-making processes.
• Industry standard risk registering processes
covering identification, analysis and measument
of risk.

BUSINESS DEVELOPMENT Similarly, a partnership was established between
QP and Chevron in the international upstream
The Commercial & Business Development Direc- sector with the acquisition of an equity interest in
torate was established in 2015 with the objective an exploration project in offshore Morocco.
of creating a center of excellence that looks after
the commercial aspects of the business for the Through its business development activities, the
organization as a whole. It is mainly responsible Commercial & Business Development Directorate
for identifying, evaluating and leading the continues to strengthen QP’s position as a global
commercial execution of new business opportuni- LNG player, thereby promoting the use of a cleaner
ties across the entire oil & gas value chain. fuel to help in achieving environmental targets.
During 2016, the directorate actively promoted Specifically, the directorate was actively involved
initiatives to deliver profitable growth to QP’s in pursuing a sales and purchase agreement (SPA)
businesses in line with the corporate strategy and for the supply of LNG into the emerging market of
to maintain and strengthen QP's relationship with Pakistan. The deal was signed in October 2016
its long-term commercial and strategic partners. between Qatargas and the Pakistan-based Global
Energy Infrastructure Limited (GEIL) for the supply
In that respect, it was involved in pursuing and of up to 2.3 MMTPA of LNG to Pakistan for 20
executing business opportunities in various years. In addition, a new gas SPA was also signed
business sectors. Multiple opportunities were between QP and Dolphin Energy Limited to deliver
screened in collaboration with functional teams additional quantities of gas for export to the
within QP, and several of the opportunities were United Arab Emirates.
progressed into the stages of detailed evaluation
and execution. The value added by QP in all its operations directly
benefits the State of Qatar in its continued pursuit
In addition, the directorate led the restructuring of its development and growth objectives.
and renewal of commercial and fiscal agreements,
the formulation of QP’s business strategy, and the
development of M&A projects. It also supported International Ventures
corporate initiatives for cost reduction and
Qatar Petroleum manages an expanding interna-
organizational change.
tional upstream presence comprising of a portfo-
lio of exploration and production assets and
Joint Ventures and Partnerships licenses, and it continuously evaluates new
business and growth opportunities. It also main-
The Commercial & Business Development Direc- tains a principal role as a proactive non-operator
torate played a central role in the successful internationally but has initiated development of
competitive evaluation process for re-contracting an international basin and hydrocarbon
the Al-Shaheen oil field, while it managed at the resource-led exploration portfolio.
same time to strengthen QP's long-term
upstream value in partnership with Total through QP’s corporate strategy provides guidance to
the establishment of North Oil Company (NOC) to preferred geographies and commercial
operate and develop Al-Shaheen oil field. arrangements for this future organic growth
direction.

This will require building competencies through ly-owned subsidiary) holds an overall 40% share
people recruitment and development as well as in all of Centrica’s Canadian upstream assets.
the deployment of advanced technologies and
state-of-the-art knowledge management and QPI Energy Canada Ltd. continues to play an
processes, all of which are part of the short- to active non-operating role in a partnership while
long-term plans of the directorate. Centrica’s subsidiary Direct Energy operates the
assets and facilities and markets QP’s share of
QPI Upstream OPC (Congo) hydrocarbon to the Canadian market. QP
maintains key decision-making influence on all of
Capitalizing on the strategic acquisition of 15% CQ Energy’s activities, including but not limited to
ownership in Total E&P Congo (TEPC) in December development, funding, acquisition, divestments
2013, QP continued its efforts to play an active role and strategy decisions.
to maximize the value and ensure the sustainable
growth of TEPC assets in this prolific West African In 2016, the CQ asset continued improving its HSE
Basin. QP maintains key decision-making influence performance. Through QP’s active engagement,
on all of TEPC’s activities, including but not limited the CQ operator continued to take steps to reduce
to development, funding, license renegotiations costs without compromising on HSE, e.g. by
and strategy decisions. further lowering headcount and optimizing
repairs and maintenance costs. Despite the low oil
In 2016, the Congo asset continued on its improving and gas prices, the CQ operator fully repaid the
trend in HSE. The Moho Nord project is progressing short-term loan to its partners and also returned
with slight delays caused by the postponement of dividends in 2016. The average daily production
Alpha Beta first oil to 2017 due to the degraded oil (QP net) from Canadian assets reached 23.9
quality compared to plan. The Moho Nord’s first oil Kboe/d in 2016.
production is now planned for March 2017.
After the completion of all phases of the Moho QPI Brazil Petroleo Ltd. (Brazil)
Nord project, it is expected that TEPC’s share of
production will reach a peak of about 100 kboe/d On April 30, 2014, QPI and Shell successfully
by 2017/2018. The potential exploration opportu- closed the acquisition of both the Brazilian
nities are under review by the shareholders in upstream assets of the BC-10 Concession and the
conjunction with a 2015/2016 bid round for deep related Tamba joint venture that provides floating
offshore pre-salt exploration targets. The average production storage and offloading (FPSO) and
daily production (QP net) from Congo assets subsea facilities support to the BC-10 Concession.
reached 13.5 Kboe/d in 2016. QP through its wholly owned subsidiary QPI Brasil
Petroleo ltada (QPI BPL) holds a 23% working
CQE Partnership (Canada) interest in the Shell-operated offshore fields. QPI
BPL has also managed to obtain the necessary
Qatar Petroleum International (QPI) entered Western export license to lift, export and market its entitlement
Canada with Centrica Energy in 2013 by forming from BC-10 production.
the CQ Energy Partnership (CQE), where QPI
Energy Canada Ltd. (QP’s existing Canadian whol-

In 2016, the Brazilian asset likewise continued Power Generation
improving its HSE performance. The year also
Umm Al-Houl Power is one of QP’s downstream
witnessed Phase III ‘s first oil on 10 March 2016. In
joint ventures. It is a new high-efficiency
addition, 2016 marked an important milestone for 2500-megawatt (MW) power plant project,
QP as it witnessed the first oil cargo lifting from its combined with more than 500,000 m3 of water
international upstream projects. The average daily production per day, to enable Qatar’s long-term
production (QP net) from BC-10 assets reached 8.9 GDP growth and economic diversification as well
Kboe/d in 2016. as to provide for the everyday needs of the people
of Qatar.
Solar Power QP owns 5% of the project, which is one of the

largest in the Middle East. The other shareholders
Qatar Petroleum’s interest in solar power continued in are QEWC (60%), Qatar Foundation (5%) and
2016 with a strong commitment to energy efficiency Mitsubishi Corporation (30%). The power station
and national renewable energy aspirations. The is expected to go online in 2017.
Commercial & Business Development Directorate By the end of 2016, the construction of the Umm
worked on structuring a partnership between QP Al-Houl power plant was about 75% complete.
and the Qatar Electricity & Water Company (QEWC) The EPC contractor consortium (Samsung C&T
to develop Siraj Energy, a solar power project in and Hitachi Zosen) had deployed additional man-
Qatar which is expected to have a 200-500 MW power and enhanced construction management
power generation capacity by 2020. to ensure that the project would meet its first
water and power production dates. Interfaces for
On its part, the Downstream Directorate was the supply of fuel gas and the delivery of water
engaged in preparations for the establishment of and electricity to the Kahramaa network have
the first large-scale industrial solar power project in been progressing as planned.
Qatar. The shareholder agreement for Siraj Energy
Company was signed in November 2016, and the
QP Around the World
formation of the company is expected to be
completed in the first quarter of 2017. Discussions QP’s vision is to continue to build its international
are ongoing between QP, QEWC and Qatar General presence with investments that provide
Electricity & Water Corporation (Kahramaa) to opportunities to build on its core competencies,
agree on the principles for developing solar energy diversify its portfolio and extract further value for
QP and the State of Qatar across the oil and gas
projects, with Kahramaa to serve as the off-taker of
value chain.
power produced by Siraj Energy solar power plants
under an independent power producer (IPP) This portfolio includes joint ventures spanning
framework. four continents and the whole oil and gas value
chain. QP’s international assets include upstream
The Industrial Cities Directorate, in support of QP’s
(oil & gas exploration), midstream (LNG terminals)
energy efficiency strategies, has allocated land for and downstream (refining hydrocarbon into
the construction of a solar power plant in Dukhan. derivative products) operations based in the USA,
Canada, UK, Italy, Greece, Singapore, Vietnam,
Egypt, Morocco, the Democratic Republic of
Congo, and Brazil.

HARNESSING
RESOURCES

Qatar Petroleum continues to develop innovative been key to the successful development of the
ways to harness Qatar’s hydrocarbon resources more difficult reservoirs in Qatar by bringing in
and to create a genial environment for economic investments and the latest technologies. The
development and growth for the State of Qatar. production from these fields has provided a
significant boost to the country’s crude oil
QP has continued to enhance its upstream production.
capabilities by implementing enhanced develop-
ment programs for its oil and gas fields in order to QP’s actual annual production of crude oil and
ensure steady and sustained production levels. natural gas is based on reservoir management
Major reservoir and field-wide studies have been requirements. Some of the oil and by-products
undertaken – including seismic surveys – in order extracted are supplied as feedstock for domestic
to reassess the reserves and the long-term produc- downstream companies; the remainder is sent to
tion prospects for each field. Mesaieed Terminal (onshore) or Halul Island
(offshore) for export.
This has been carried out using improved Oil
Recovery Techniques and Full Field Redevelop-
ment Plans, as well as the latest cutting-edge tech- Gas Field Development and Production
nology and powerful computer modeling and
data processing. The development and production of gas from
Qatar’s North Field are also managed by QP
through a combination of direct operation (in
OIL AND GAS North Field Alpha), oversight of its wholly-owned
subsidiaries Qatargas and RasGas, and
The State of Qatar holds huge natural gas partnerships with major international oil and gas
resources, ranking it third in the world in terms of companies through PSAs and joint ventures in
proven gas reserves. Covering an area of 6,000 the cases of the Barzan Gas Project, the Dolphin
square kilometers off the northeast shore of the Gas Project, the Al-Khaleej Gas Project, and the
Qatari peninsula, the country’s North Field has Oryx GTL and the Pearl GTL Project.
900 trillion standard cubic feet of recoverable gas
and is the largest single non-associated gas reservoir
in the world. Qatar also possesses significant Harnessing Synergies across Offshore Opera-
onshore and offshore oil reserves, The harnessing tions: Offshore Operators Forum (OOF)
of these resources is the primary mission of QP
and is central to the development and prosperity To optimize costs under the present market
of the country. conditions, QP has revitalized the Offshore Oper-
ators Forum (OOF) to identify opportunities for
Oil Field Development and Production harnessing synergy among all offshore operators
in Qatar. The forum includes three subgroups
Qatar Petroleum is the custodian of Qatar’s oil focusing on HSE, Operations and Maintenance,
reserves both onshore and offshore. It manages and Logistics and comprising all operator repre-
them through a combination of direct operation as sentatives from similar specialized fields.
well as partnerships with major international oil
and gas companies through production sharing In 2016, this forum successfully identified a
agreements (PSAs) or joint operations. PSAs have number of opportunities for cost savings. The

Logistics subgroup completed a preliminary study energy efficiency initiatives, the enhancement of
revealing the significant saving potential of a Joint equipment performance and organizational
Helicopter Project (under an umbrella contract), efficiency, the optimization of preventive mainte-
which would streamline aviation logistics and nance programs, greater acclimatization to
adopt a more effective demand-based approach. risk-based inspection programs, and promotion of
a cost-conscious culture across QP and its
Significant cost savings were also realized across partners, joint ventures and subsidiaries.
oil and gas field development and production
activities in 2016 through the implementation of

NORTH FIELD Barzan Gas Project is located in Ras Laffan Industrial
City and will be operated by RasGas Company
The North Field was discovered in 1971 and Limited. The project will produce and process gas
covers an area of around 6,000 square kilometers. from Qatar’s North Field, which will then supply
It is located off the northeast shore of the Qatari sales gas to power stations and industries in
peninsula and is considered the largest single Qatar, ethane to the local petrochemical industry,
non-associated gas field in the world. The optimal and associated liquid hydrocarbons to the local
development of this vast natural resource is of and international markets. The project is expected
great strategic significance to Qatar’s overall to supply 1.4 bscf/d of gas.
economic development.
A Joint Venture Agreement and a Development
and Fiscal Agreement were signed by QP (93%
North Field Alpha shareholding) and ExxonMobil (7% shareholding)
The first commercial exploitation of the North on January 6, 2011.
Field commenced in late 1991 with the initial gas The drilling of the wells was completed from three
production from Phase I (Alpha Project). The gas is offshore wellheads, and these were handed over
supplied to the local market, and the condensate to RasGas to get ready for the project’s start-up.
is used for refining or export. A portion of the gas The offshore and onshore EPC contracts were
produced from this project is re-injected into the awarded in early 2011 to Hyundai Heavy Industries
country’s strategic contingency reserve in (HHI) and JGC, respectively, and all onshore and
Dukhan. offshore constructions had been completed.
A new satellite wellhead platform is progressing,
while two separate contracts were awarded in Dolphin Project
2016. The first was an engineering, procurement
and construction (EPC) contract for building a Dolphin Project entails the development of North
jacket with a temporary deck for facilitating well Field reserves for the production of wellhead gas
drilling activities, and the second contract was for that is sufficient to export 2 bcsfd of sales gas to
topside front end engineering design (FEED) to the United Arab Emirates (UAE). The project
optimize the design and prepare the EPC bid processes gas at Ras Laffan, where condensate,
package. The new wellhead, WH3, located around ethane, LPG and sulfur are stripped out and sweet
2 kilometers away from the existing complex, will lean gas is then delivered to the UAE through a 48”
support the NFA production plateau for an subsea pipeline.
extended duration.
A Development and Production Sharing Agreement
The average production achieved at NFA in 2016 (DPSA) was signed on December 23, 2001
was 721 mmscf/d of gas and 28,677 bpd of stabilized between QP and the contractor (Dolphin Invest-
condensate. ment Company with 51% interest, Total of France
with 24.5% interest, and Occidental Petroleum of
the USA with 24.5% interest). The delivery of
export gas from the first stream commenced in
Barzan Gas Project

the third quarter of 2007; the second stream a total of 19. 3 million barrels of condensate and
began in February 2008; and the lean gas export 41.5 million barrels of GTL products.
to the UAE is currently at full capacity.
In order to sustain the production plateau and Al-Khaleej Gas
maximize condensate recovery, the drilling of
three new wells started in the DOL-1 platform in The Al-Khaleej Gas Project (AKG), which is operated by
2016, with planned start-up in the first quarter of RasGas, utilizes the North Field’s reserves to
2017. Additional three wells are planned to be supply 2 bscf/d of sales gas to domestic consum-
drilled in the DOL-2 platform in 2018. ers, to export condensate, liquefied petroleum
gas (LPG) and sulfur, and to supply ethane to the
In 2016, the average sales gas production of the local petrochemical industry.
Dolphin Project was 2,000 mmscf/d, in addition to
1.29 million tonnes of LPG and 32 mmb of total The AKG Development and Production Sharing
condensate. Agreement (DPSA) was signed with ExxonMobil
on 2 May 2000, while phase-I (AKG-1) commenced
commercial gas deliveries on 2 November 2005.
Pearl GTL This phase supplies 784 mmscf/d of sales gas to
Ras Laffan Power Company Ltd., Oryx GTL, Q-Power,
In July 2004, a DPSA was signed between QP and Laffan Refinery, Ras Laffan Olefins Company Ltd.,
Qatar Shell GTL to develop the Pearl GTL project and other industries in Mesaieed.
in two phases: Pearl-1 and Pearl-2. The objective
of this integrated project was to develop about Phase-II development (AKG-2), which started
1,600 mmscf/d of North Field gas to produce operations in the third quarter of 2009, had a
approximately 140,000 bpd of synthetic fuels, nominal design capacity to supply 1,250 mmscf/d
including base oils for manufacturing lubricating of gas to local industries and power generation
oils. plants.
Drilling and completion activities on Pearl-1 and During 2016, AKG’s average production was 1,719
Pearl-2 were completed in the third quarter of mmscf/d of sales gas. AKG also produced around
2009 and March 2010, respectively. First gas from 20 mmb of condensate and 2.16 million tonnes of
offshore Pearl-1 and Pearl-2 was produced on 23 LPG in 2016.
March 2011 and 04 November 2011, respectively.
Pearl GTL phase-1 achieved first wax production
on 14 May 2011 and the first GTL gasoil was
produced on 29 May 2011. The first commercial
shipment of GTL gasoil departed in June 2011,
while the first GTL base oil shipment was made in
October 2011.
Pearl GTL phase-2 achieved first wax production
on 1 December 2011. In 2016, Pearl GTL produced

OFFSHORE FIELD DEVELOPMENT In 2016, the oil and gas production/injection
targets were successfully delivered with signifi-
In 2016, the Field Development & Exploration cant cost savings realized through the revision of
Directorate pursued its mandate by setting clear contracts and prudent data acquisition plans.
priorities in support of QP’s corporate strategy. It Khuff production/injection capacities were main-
continued to actively manage a quality portfolio tained to act as a strategic swing gas reservoir to
by achieving operational excellence in both fulfill domestic gas supply and accommodate
offshore and onshore operations in terms of excess gas production from the North Field.
production and HSE performance, operating costs,
as well as the availability and reliability of As part of initiatives undertaken to further sustain
upstream assets. the North Field production plateau from Qatargas
I, Qatargas II, Ras Laffan 1 and Ras Laffan II, some
Emphasis was placed on high-value upstream new wellhead platforms and associated interfiled
opportunities and proposals were put forward for pipelines have been taken onboard under the
the best-fit options for surface facilities. The Pre-Investment I phase (drilling of infill and new
directorate harnessed synergy in offshore support wells). To optimize costs and maximize synergies,
services including marine logistics. In addition, these activities are being managed by a joint QP,
supervision and monitoring of the development RasGas and Qatargas Team.
activities of operators and QP’s joint venture
partners continued to improve the chances of
success in developing existing reserves and to Offshore Operations
ensure that the technical aspects of contractual
Working under the Operations Directorate, the
obligations were fulfilled.
Offshore Operations Department undertakes the
The drilling and completion operations at Maydan production, storage and export of crude oil and
Mahzam and Bul Hanine (offshore) and the natural gas from offshore production facilities and
Dukhan Field (onshore) continued in 2016 using other QP joint venture operators in an efficient,
best industry practices and in an economical, safe cost effective, safe and environmentally
and environmentally friendly manner. Drilling acceptable manner in line with company policies
operations and all related services were conducted and regulations. It also has the mandate to
in accordance to ISO 9001, ISO 14001 and OHSAS maintain the highest degree of reliability and
18001. The Field Development & Exploration safety in all aspects of offshore operations with
Directorate also continued the development of due adherence to all company, national and
the Dukhan Field to maximize economic recovery. international standards.
The projects in 2016 included infill drilling and well In 2016, Offshore Operations produced and deliv-
integrity/reservoir workovers to sustain a ered piped oil to Halul Island and gas to Mesaieed
production plateau for the next 10 years. The in accordance with scheduled production targets.
fit-for-purpose Reservoir Management Program It also produced and processed gas at the North
was utilized to optimize and safeguard Qatar’s Field Alpha (NFA) platform and delivered gas and
hydrocarbon reserves. condensate, along with associated gas from the Al
Shaheen Field, to QP’s NGL-3 plant in Mesaieed for
further processing. The average NFA export to

NGL-3 during the year was 721 mmscf/d gas and Al Shaheen is currently the largest producing oil
28,677 bpd of unstabilized condensate. field in the State of Qatar. It is estimated to contain
some 43 billion barrels, of which only 1.7 billion
Work continued throughout 2016 to protect the have been produced to date. Production from Al
integrity of Maydan Mahzam and Bul Hanine Shaheen started in 1994 and the field currently
assets by executing maintenance excellence and produces 300,000 barrels of oil per day (bpd)
long-term inspection and maintenance strategies, through nine platform locations from a well stock
and to implement a routine integrity monitoring in excess of 340 wells.
program to sustain the long-term availability,
operability and safety of all wells under NFA. A In May 2015, QP invited a number of international
special team--the Offshore Operations Pipelines oil companies to bid for the future operation and
Integrity Team (OOPIT)--was formed and tasked to development of Al Shaheen Field as a partner
perform analysis from inspection to process/chemical with QP after the expiry of Maersk Oil Qatar’s PSA
on 13 July 2017. At the conclusion of the competi-
treatment and corrosion monitoring/control point, tive bidding process in June 2016, Total was
thus defining all measures to guarantee the integrity selected as the successful bidder, and a new joint
of pipelines. venture company, North Oil Company (NOC), was
established, with 70% owned by QP and the
With QP set to take over the operation of Al Rayyan
remaining 30% by Total. A Development and
Field from Occidental Petroleum in June 2017, Fiscal Agreement (DFA) was signed by the parties
Offshore Operations participated in the Al Rayyan to the joint venture to operate and develop the
handover process by reviewing all environment, field for a period of 25 years from July 14, 2017.
hygiene and radiation protection-related reports,
studies and government-issued licenses to ensure Since the formation of NOC in June 2016, a transi-
that these were complete and updated. The tion working team was formed involving QP, Total
and Maersk Oil to ensure a smooth transfer of
transition activity was initiated in June 2016 and operatorship at the end of Maersk Oil Qatar’s PSA
has been handled with in-house resources from in July 2017. NOC has been preparing the Initial
various QP departments in coordination with Field Development Plan (IFDP) to be submitted in
Occidental. Offshore Operations had signed a the first quarter of 2017, as required under the
service level agreement (SLA) with LP for providing DFA. The Block-5 Extension Area will still be oper-
assistance in operating the Al Rayyan Field. ated by Maersk Oil Qatar under an arrangement
with NOC, and the PSA for this will expire in April
Al-Shaheen Field 2024.
The field was discovered with the appraisal drilling Some 103 million barrels of oil were produced
of the Khuff gas reservoirs in the 1970s. The exploration from Al Shaheen in 2016, bringing the total
and production sharing agreement (EPSA) was cumulative oil produced from the field to 1.689
signed with Maersk Oil in July 1992 for a 25-year billion barrels since 1994. The average production
period. Since 1994, the field has gone through for 2016 was 282,500 bpd.
many phases of development, with the Field
Development Plan (FDP) 2012 being the latest to
increase reserves and sustain the field production
capacity.

Bul Hanine Field
Bul Hanine (BH) was discovered in 1965 through
well BH-1 (Arab D), and first production followed
in 1972. The BH field consists of a series of oil and
gas-bearing heterogeneous carbonate reservoirs
of the Jurassic, Triassic and Permian. The Arab A
and B are small gas reservoirs that are not devel-
oped, while the Arab C is an important oil rim
capped by rich gas, which has been produced and
shut-in for reservoir management. Two wells have
been drilled recently in different parts of the field
to assess the reservoir productivity and well Maydan Mahzam Field
concept. The Arab D is an important under-saturated The Maydan Mahzam (MM) was discovered in
oil reservoir. It is the most developed oil reservoir 1963 and put in production in November 1965.
in the field and contributes almost 96% of the
field’s current total production. The field consists of a series of oil and gas bearing
heterogeneous carbonate reservoirs of the
In 2014, QP announced plans to invest over QR40 Jurassic and Permian. The Arab C and Arab D
billion in the re-development of the Bul Hanine under-saturated reservoirs are the most prolific in
Field, making it the one of the largest to be managed the MM field. They are the most developed
and executed by the corporation. The project is reservoirs and contribute up to 95% to the field’s
designed to prolong the field’s life by countering production at the end of 2015.
its production decline and doubling its current oil
production rate. The MM Arab ABCD New Generation Static
Reservoir Modeling Study, which looks at seismic
A major phased redevelopment program is underway horizon and faults interpretation of the Arab
to enhance its production. Phase 1 will stabilize reservoir based on the newly re-processed
the production of the Arab D reservoir to around PreSDM seismic data, was completed in 2016. The
40,000 bpd by 2020, while Phase 2 will develop construction of the new generation static model
additional high-pressure reservoirs and increase has been initiated.
production to around 75,000 bpd by 2023. All four
wellhead jackets for Phase 1 were installed in the The MM Middle Jurassic New Generation Static
fourth quarter of 2016. The first oil from Phase 1 is Reservoir Modeling Study was carried out and
expected in April 2020. completed in 2015. The main objective of this
reservoir modeling study is to build a new MM
Numerous Bul Hanine redevelopment studies Middle Jurassic 3D reservoir model for well
were carried out in 2016, while parallel studies placement and well count planning for future
were carried forward to update the simulation field redevelopment. The new improved static
models with the latest production, completion model incorporated new re-processed PreSDM
and test information, as well as to evaluate and seismic data, new SCAL core data and new wells.
optimize the development proposals.

In addition, the new model offers higher resolution
PRODUCTION SHARING AGREEMENTS
and details, and it will help build a better dynamic
model. Fields under production sharing agreements
(PSAs) have been key to the successful
The Dynamic Reservoir Modeling phase kicked off
development of the more difficult reservoirs in
in April 2016, with a plan to be completed in April
Qatar by bringing in investments and the latest
2017. The dynamic model was successfully initial-
technology. The production from these fields has
ized and history matched in an integrated manner
been a significant boost to the country’s crude oil
to ensure consistency between static and dynam-
production. In 2016, the non-operated fields
ic models. The model was successfully peer
produced a total of 153 million barrels, accounting
reviewed internally by a committee consisting of
for 64% of Qatar’s total oil production.
QP staff.
Al-Khalij Field
2016 Total Oil Production by Operator
Al-Khalij field was discovered in 1991, and with the
expiration of the original EPSA in February 2014, it
is currently being operated as a joint venture
between QP and Total. The field is estimated to
contain 2.6 billion barrels, of which only 209 QP
million have been produced to date. Approxi- Operated
mately 7.1 million barrels of oil were produced 36%
from Al Khalij field in 2016, bringing the total oil
produced from the field to 207.7 million barrels at PSA/JV
the end of 2016. The 2016 average oil production Operated
was 19,400 bpd. 64%
The field development plan and infill drilling were
carried out in phases to reduce development risk
due to the complexity of the field. As of December
Idd El-Shargi Field
2016, two ESP change-outs were completed.
(Occidental Petroleum of Qatar Ltd.)
Geoscience and reservoir studies also continued
Offshore production started in 1966 at the Idd
throughout the year in 2016. A full-field 4D seismic
El-Shargi field, which was discovered in 1960
processing was completed in June 2015 and the
some 85 kilometers east of Doha. The field
first phase of interpretation was completed in
consists of two elliptical domes: the larger North
January 2016. Data reprocessing with a different
Dome (which was the first to be discovered) and
de-multiple strategy and also 4D warping and
the smaller South Dome.
inversion were carried out and were completed at
the end of 2016. 4D interpretation will commence Idd El-Shargi, both in its north and south domes, is
in the first quarter of 2017. A revised FDP was operated under a production sharing agreement
submitted in December 2016 and is currently with Occidental Petroleum of Qatar Ltd.
under review by QP.

Phase V of the Idd El-Shargi Field (North Dome) was discovered in 1976 by Wintershall. The ARCO
development plan was approved in June 2013. As consortium eventually declared commercial
of December 2016, a total of 70 out of 205 well discovery after drilling and testing the ALR-04 in
projects had been completed, and 12 electrical 1995, with first production following in 1996.
submersible pump (ESP) completion conversions
In 2002, Anadarko purchased the interests of
and eight minimum facilities platforms were
Gulfstream and BP and became the operator. In
successfully installed.
October 2007, Occidental acquired Anadarko’s
Occidental Petroleum of Qatar has re-submitted interests and became the operator. In June 2016,
the optimized Phase V plan in the fourth quarter QP and Occidental kicked off a handover process
of 2016 for a multi-year production plateau of 90 to transfer the operatorship to QP.
million bpd.
Current production is approximately 6,100 bpd
As for the Idd El-Shargi Field South Dome, a new from a total of 17 wells. The field consists of two
phased full field development plan was approved producing reservoirs, the Arab A and Arab C,
in 2011 and has been divided into five phases, which are carbonate formations and situated in a
with a total of 39 new wells to be drilled. With the very shallow, four-way dip closure, capped by an
implementation of phases 1 and 2 and by anhydrite formation.
incorporating the lessons learned, revised phases
3 to 5 are currently under implementation. With the completion of the 2010 Al Rayyan FDP
activities, which included the drilling of seven
wells and the expansion of the fluid handling
Al-Karkara & A-Structures capacity on Al Morjan facilities, production from
(Qatar Petroleum Development Company) the field has increased from 180,000 to 220,000
The initial full field development plans for Al barrels of liquid per day.
Karkara & A-Structures, including A-South, were QP will take over the field at the expiry of the EPSA
completed in 2011. New studies were then initiated on 31 May 2017. The field handover was initiated
to check for additional potential and these next in the second quarter of 2016 and Occidental
development plans subsurface/surface and Qatar Energy Company will ensure all pertinent
drilling studies were completed in 2015. data will be transferred to QP in a smooth and
A new well has been approved in A-South and it professional manner.
will be drilled in 2017. In light of the low oil price
situation of 2016, a new feasibility study and
El-Bunduq Field
economic analysis will be carried out and
presented in 2017. The Preliminary Conceptual Development Plan for
the El-Bunduq field was received in the third quarter of
2016. A meeting was conducted between QP and
Al-Rayyan Field
United Petroleum Development Company Ltd.
(Occidental Qatar Energy Company) (UPD) to discuss the plan and exchange comments.
The Al Rayyan field is located approximately 50 Up to three new in-fill wells will be drilled in 2018
kilometers north of the Qatar peninsula. The field as part of the proposed field development plan.

DUKHAN
Qatar’s onshore and offshore fields are of great
strategic significance to the country’s overall
economic development. Qatar Petroleum
continuously aims to increase the hydrocarbon
resources and reserves of Qatar through
aggressive exploration and production activities
that are being implemented in partnership with
major international oil and gas companies.
The Dukhan Field is a large oil and gas field
extending over an area of approximately 80
kilometers by 8 kilometers. Located around 80
kilometers to the west of Doha, the field consists QATAR
of three sectors from north to south – Khatiyah,
Fahahil and Jaleha/Diyab.
The oil and gas produced from the field are sepa-
rated in four main degassing stations – Khatiyah
North, Khatiyah Main, Fahahil Main and Jaleha – all
of which are continuously manned. Fahahil North
and Fahahil South are unmanned satellite
stations. Khatiyah South is now a manned station.
The Diyab manifold at the southern end of the
field has no process facilities and its total oil
production is sent to Jaleha station for The Dukhan Field
processing. Stabilized crude oil is then transported
by pipeline to Mesaieed Port, which is about 100
kilometers east of Dukhan. The Dukhan Field has around 319 oil producing
wells, 180 water injection wells and 61 gas
The actual annual production of the Dukhan Field producer and injector wells. According to the
is based on reservoir management requirements. latest well status, Dukhan has a total of 598 wells,
including production, injection, observation,
Other production facilities on the field include closed-in wells. A total of 156 wells, on the other
plants for associated gas, non-associated gas, raw hand, have been abandoned.
natural gas liquids (NGL) production from
associated gas, Arab D gas cap, and a recycling The Dukhan Operations’ storage and export facilities
plant to produce NGL and condensate. Facilities are based in the Mesaieed Terminal. The Terminal
to inject North Field gas into the Khuff Reservoir, and Export Department receives, stores, schedules
and to inject water into the main oil reservoirs of and exports crude oil and naphtha.
Arab C and Arab D and Uwainat for pressure main-
tenance are also operated on a continuous basis Business Continuity Management (BCM) and
in Dukhan. Enterprise Risk Management (ERM) studies have

been completed on the Dukhan Field. The focus ical models were also updated and used for well
of BCM was on ensuring the achievements of prognosis, drilling/operational decisions and
Dukhan Operations’ business objectives. Among geosteering.
these is to ensure the safe, efficient, and reliable
• Dukhan New Generation Simulation Models --
operations of the Dukhan Field to meet the oil
The Arab C, Arab D, Uwainat and Khuff New
and gas production and export targets in line
Generation Models history matchings and predictions
with the Operations Directorate’s objectives.
were completed utilizing in-house QP expertise.
Dukhan Redevelopment Program These are the updated simulation models after the
Dukhan Field Integrated Study (DFIS) and Dukhan
The Dukhan Field was discovered in 1940 and has Khuff Integrated Study (DKIS), incorporating the
been producing since 1949. It is an elongated learnings and recommendations of both studies,
anticline that plunges from north to south. The the latest static model description and updated
structure and stratigraphy are complex across reservoir performance data. The EWF development
the field, with several identified faults. The main strategy envisioned from DFIS has been further
oil reservoirs are the upper Jurassic Arab C, upper optimized, and additional infill wells have been
Jurassic Arab D, and the middle Jurassic Uwainat. identified to add reserves and extend the Dukhan
The Permian Khuff reservoir is a gas reservoir. plateau production, now with the integral inclusion of
the Uwainat reservoir. The updated models will
Major Activities in 2016 also be used for future infill wells placement
• Dukhan 3D Seismic -- Following the successful optimization, CO2 pilot modeling update, Arab D
completion of the PreStack Time Migration Gas Cap Optimization and Uwainat Gas Cap
(PSTM) processing of the Dukhan 3D seismic Development. In addition, Khuff prediction
volume in 2012, a series of subsequent forecast capability has been enhanced and has
interpretation studies focused on structural aided in Khuff replacement wells optimization and
framework, fault networks and volume-based gas availability assessment as a strategic gas
spatial properties were developed. New seismic resource. Models will be used to update the Annual
interpretations are continually used for detailed Reserves Review (ARR), Business Plan (BP), Field
well planning and drilling hazard assessment. Development Plan (FDP) and Reservoir Management
Plan (RMP) submissions.
The scope of work for a high-density PreStack
Depth Migration (PSDM) processing study of the • Produced Water Re-Injection Project (PWRI) --
Dukhan 3D Seismic survey was completed. The objective of the PWRI project is to eliminate
produced water disposal into the Umm Er Radhuma
• Geological Models -- In-house evergreen full Formation and support powered water injection
field Dukhan static models for Arab C, Arab D, in Dukhan. The PWRI project started in February
Uwainat and Khuff, based on the latest high-res- 2012, and as of the end of 2016, 90% of the
olution seismic and reservoir performance data, produced water is being reinjected back into the
were delivered. These models provide the frame- reservoirs. A new project is currently being
work for the simulation models used for Arab C implemented to manage the remaining produced
and Arab D enhanced waterflooding (EWF) optimi- water.
zation, Uwainat waterflood re-development, and
Khuff strategic gas resource. Operational geolog- • Drilling and Workover Activities -- A total of 40

wells were drilled and 81 were worked over to - Condensates are also sent to the QP Refinery.
enhance production and address well integrity
issues. As of the end of 2016, a total of five drilling - Arab D NGL is supplied to NGL-4 in Mesaieed.
rigs and three workover rigs were in operation to - FSP Raw NGL is sent to NGL-1 and NGL-2 in
meet the well work requirements. Mesaieed.
• Well Integrity Management -- The program to - SAG is supplied to the Dukhan Desalination
perform well integrity investigations continued Plant, Qatar National Cement Company (QNCC),
during 2016. Workovers were identified, prioritized QAPCO and QAFCO via QP’s Gas Distribution
and performed. The program has been extended System.
to 2017 to ensure safe well operations.
• Production Engineering Geoscience Integration
(PEGI) -- PEGI is an integrated surveillance tool to
support reservoir management activities. During
2016, new updated completion, flood front and
pressure maps were completed for Arab C and
Arab D reservoirs. A new Uwainat PEGI project
was also kicked off in 2016.
• Gas Lift Optimization -- A field-wide gas lift
optimization project, which was started in 2013, is
being implemented continuously in the Dukhan
Field to optimize the gas lift system at well/facility
levels.
Marketing and Development Plans
The main products earmarked for export from the
Dukhan Field are crude oil, condensate, NGL and
stripped associated gas (SAG).
Currently under construction or in progress are
the drilling of new wells and the abandonment of
unsafe wells. Major civil infrastructure
development projects are also presently being
implemented in Dukhan.
Major Customers
The following products from Dukhan are distributed
to various internal and external customers:
- Crude oil is supplied to the QP Refinery in
Mesaieed.

A Brief History of the Dukhan Field
The development of the Dukhan Field took place in various stages. The first well was drilled in 1939-1940,
confirming the presence of commercial quantities of oil, but further work was suspended due to World War
II. The development of the Khatiyah sector was subsequently started in 1947 and oil was exported for the
first time ever from Mesaieed Port on 31 December 1949.
Drilling of the first well in Dukhan 1939/1940

Shipment of the first crude oil from Dukhan 1949
Discovery of non-associated gas in the Khuff reservoir 1959/1960
Start of power water injection in Dukhan reservoirs 1989
Commissioning of the Arab D Gas Recycling Plant 1998
Commissioning of NGL4/DKADU 2003
Commissioning of the gas lift project 2003
ISO 9001:2000 quality certification for Dukhan Operations 2004
Completion of Central Office Building for Dukhan Operations 2005
Establishment of Well Integrity Department 2009
Completion of a new sewage treatment plant 2009
Completion of the Dukhan Umm Bab – Salwa Road 2010
Upgrading of the Mesaieed Tank Farm 2011
Achievement of significant reduction in gas flaring 2011
Commissioning of new fire stations at Fahahil and Umm Bab 2011
Completion of the Cuban Hospital in Dukhan 2011
Completion of additional offices, warehouses and laboratories 2011
Commissioning of fiscal meter & meter prover for crude oil, NGL & condensates 2012
Integrated Management Systems Certification for the entire Dukhan Operations 2013
New control room and automation upgrade completed in all degassing stations 2014
Completion of re-injection facilities for produced water 2014
Launching of the sweet fuel gas project 2014

HALUL ISLAND Development - Japan (QPD) operating the
Al-Karkara and A-Structures fields.
Halul Island lies at the center of the Arabian Gulf
and is located approximately 96 kilometers Halul’s infrastructure includes power generation
northeast of Doha. With a total area of 1.5 square plants, water desalination facilities, a harbor for
kilometers, Halul serves as the main storage and supply boats, a heliport, a waste management
export terminal for Qatar Marine Crude (QMC) oil, facility as well as staff accommodation and all
and it is equipped with major oil terminal facilities related facilities like restaurants, a clubhouse and
that meet all international standards. recreational facilities. For over five decades now,
Halul Island has been playing a key role in the
The island has 11 large crude oil storage tanks continued development of Qatar’s economy and
with a total capacity of 5 million barrels. An addi- in helping meet the world’s rising energy
tional storage tank is currently being designed for demand.
Halul Island to cater to the future increase in oil
production from the Bul Hanine and Maydan Halul is in the final stages of linking up a power
Mahzam fields. network between mainland Qatar and Halul
Island via two fully redundant subsea cables with
Halul Terminal complies with the International an overall capacity of 100 MW . Once commis-
Ship and Port Security Code (ISPS) and follows the sioned , this will supply all the power require-
recommendations set out by the International ments of Halul Island, with additional capacity to
Safety Guide for Oil Tankers and Terminals be extended to offshore facilities when required.
(ISGOTT). Its tanker-loading facilities comprise of
two single mooring buoys (SMB) that can load
two tankers simultaneously. Halul Island has a
loading capacity of around 100,000 barrels per
hour and has the capability to export more than
2.3 million barrels of crude oil in one day. In 2016,
the Halul Terminal exported an average of
181,649 barrels per day.
Crude oil from offshore fields is sent to Halul via
subsea pipelines. The crude oil that is then export-
ed from Halul is a blend of oil produced from the
five oil fields: Bul Hanine and Maydan Mahzam
which are operated by QP, and three others that
are operated by QP’s joint venture partners on a
production sharing arrangement.
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

EXPLORATION ACTIVITIES
Exploration and Drilling Activities

The following summarizes the exploration activities and achievements through 2016:
Area Operator Summary
Abruk QP The AK-3 and 4 wells had been spudded, with the results not
encouraging.
Al-Khalij South QP The AKJS-1 well oil discovery was tested successfully, with oil
from the Mishrif reservoir.
Block – A JX Nippon The JXQA-1 well was completed as a pre-Khuff (Unayzah, Jauf )
gas discovery. A second well was spudded in December 2016.
Bunduq Co. The E-1 well tested the Khuff and pre-Khuff potential of the
Bunduq Deep (QP-50%, Bunduq Field structure. The well results are under evaluation.
ADNOC-50%)
Najwat Najem Preparation work to drill the appraisal well NN-5 is ongoing. This
QP
well is scheduled to be spud in 2018.
Unconventional QP Preparation work to drill the JAB-2 well is ongoing and is

Project scheduled to be spud in the second quarter of 2017.
In addition to the above, a variety of additional studies are ongoing to evaluate the hydrocarbon potential of
Qatar. These are concentrated in oil-prone reservoirs in the eastern and northern offshore areas of the
country.
With regards to drilling activities, three rigs carried out the offshore drilling operations in 2016. The rig “Al
Doha” was released in March and the rig “Halul” started its operations in April 2016.

DRILLING
Offshore
Successful offshore drilling operations totaled 143,936 feet in 2016. A total of 15 wells in offshore fields were
drilled, including one exploration well, one appraisal well and one NFA well. In addition, 14 workover wells and
111 bottom hole pressure surveys were carried out, and 148 gas lift valves were successfully installed. Four
wells were stimulated, and 74 well integrity and 188 wellhead investigations were conducted.
Number of New Wells Drilled - 2016 Offshore Operations
20.0
15.0
10.0
5.0
0.0
YTD ACTUAL NW YTD TARGET NW YTD ACTUAL (S/T) YTD TARGET (S/T)
Workover Wells -2016 Offshore Operations
16
14
12
10
YTD ACTUAL TARGET

Onshore
A total of eight rigs carried out the onshore drilling operations in 2016. These included rig “GDI-8,” which started
its operations in April 2016. Additionally, 416,664 feet were successfully drilled in onshore drilling operations
(Dukhan), while 43 wells were drilled in onshore fields including two exploration wells.
Among other achievements in 2016, 85 workover wells and 322 bottom hole pressure surveys were carried
out; while 102 gas lift valves were successfully installed, and 161 well integrity and 207 wellhead investigations
were conducted. Two wells were perforated and 22 others were stimulated.
Wells Drilled - 2016 Onshore Operations
45.0
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
YTD ACTUAL TARGET
Workovers - 2016 Onshore Operations
90
80
70
60
50
40
30
20
10
0.0
YTD ACTUAL TARGET

Production Figures
Crude Oil
Qatar Land Crude 176,325 bpd
Qatar Marine Crude

PS-1 93,508 bpd
PS-2 23,386 bpd
PS-3 34,728 bpd
Al-Khalij 19,343 bpd
Al-Karkara & A-Structures 5,676 bpd
Total Production 176,641 bpd
Gas & Condensate Export (QP-Operated Fields)
Condensate
PS2 + PS3 1,786 mmscf/d
PS4 28,677 bpd
Gas:
PS2 + PS3 71 mmscf/d
PS4 721 mmscf/d
Halul Terminal & Export
Oil Export 181,649 bpd

PETROLEUM TECHNOLOGY
The Core and Petroleum Laboratory has continued
to provide excellent support to QP, its joint venture
companies, and IOC partners in Qatar by laying out
approximately 12,000 feet of cores and processing
around 3,000 feet of new cores (including plugging,
slabbing and core photography). The Petroleum
Laboratory started operations at the QP Support
Facility Area (QPSFA) in Dukhan in October 2016,
and it had performed over 300 detailed oil and
water analyses (i.e. fingerprinting, deposit and
sludge analysis, etc.) by the fourth quarter of 2016.
The installation of the Laboratory Information
Management System (LIMS) had been completed,
and it also continued to carry out its safety and
business critical initiatives through the upgrade of
the Fire Prevention and Suppression System in the
core store. The system is integrated with the New
Core Store and Laboratory Extension Project, which
is planned to be tendered in in the second quarter
of 2017.
Also in 2016, the Field Development & Exploration
Directorate oversaw the completion of several
projects while also embarking on numerous new
projects. Among the successful projects was the
Offshore Drilling Benchmark Study, which
compared the well construction durations in QP
with those from other operators in Qatar.
Other projects included the introduction of a new
matrix stimulation technique for Tarmat wells in BH
and MM fields, a material selection study for multi-
ples of the Hamlah wells, and the implementation
of impairment removal experience for Halul
disposal wells.
A QP scientist at the Qatar Carbonates and
There was also the final implementation of the Carbon Storage Research Centre (QCCSRC) in
mineral scale inhibitor (Scaletreat-837) to protect 7 London
PWRI stations in the Dukhan Field as well as the
implementation of the retrievable Venturi meter
technology in offshore DumpFlooder wells to
increase the accuracy of downhole flow measure-

ments, to optimize the data sampling time interval Waterflood Management -- Monitoring dynamic
and to reduce human risk by reducing the need for production and water behavior by well/sector to
well intervention. improve recovery;
The directorate’s Intelligent Oil Field (IOF) Program Well Planning -- Automating the QP well plan
continued work in 2016 on the development of the process/approval to include integration of engineering
IOF business processes for the Real Time Operation domains and third party companies ;
Centers (RTOCs). All IOF’s key processes will be
developed using the Architecture of Integrated GeoSteering – Using predictive wellbore trajectory
Information Systems (ARIS) BPM methodology. In control based on continuous downhole geological
addition, the IOF Business Processes Development log measurements for target zone adherence.
Project will define the business capabilities, information, As part of its achievements in 2016, the Field
applications and infrastructure required to support Development & Exploration Directorate also
the IOF decision support system from an RTOC. It finalized studies on real-time water-cut measure-
will model the current “AS-IS” processes, analyze ment, CO2 gas lift well tracer and mineral scale
them, develop “TO-BE” processes and blueprints, inhibition. New designs for observation, producer
and implement the new business process re-design and injector wells were completed, and a new
and then manage the change. water shut-off technology was implemented. In
Phase 1 of the IOF processes will focus on the addition, it successfully applied for the first time
following: the Periscope and AziTrack tools to identify
distance to boundaries above and below the target
Gas Lift Optimization -- Optimizing well response for better geosteering in very thin reservoirs. The
to gas lift operations through real-time monitoring microscope image in a real-time mode to identify
of key indicators; fractures for completion purposes was applied.

Intelligent Oil Field (IOF) Program
The QP Intelligent Oil Field (IOF) Program, established in 2010, aims to implement real-time reservoir management,
employing well surveillance instrumentation that is linked to reservoir simulation models. This tool will enable
the optimization of critical reservoir performance. The IOF business process pilot was initiated in 2016 to develop a scaled
model of a working IOF system (or virtual Real Time Operations Center) to serve as a baseline for the deployment
of IOF throughout QP. The working prototypes of the final product for Phase 1 of IOF processes was delivered for
Dukhan Operations, covering gas lift optimization, waterflood management, well planning and geosteering.
The completion of these processes is expected in 2017.

ADDING
VALUE

Qatar Petroleum creates value by harnessing increased value from existing downstream assets.
Qatar’s hydrocarbon resources, converting them
into added-value products and services, and by A range of diverse and in-depth activities under-
investing in the development of an integrated taken in 2016 led to a better understanding of
energy value chain around the world. potential opportunities to enhance value over and
above the targets set for that year. This provided
QP’s vision to become one of the best NOCs in the enhanced insights in directing resources to
world has meant a stronger commitment to high-value activities and opportunities.
delivering superior integrated products and
services across the entire oil and gas value chain. A very focused effort has delivered the value
To this end, QP remains focused as a responsible improvement pipeline result with limited resourc-
producer of oil & gas products. Its efforts to maxi- es in a business environment marked by low oil
mize production from its assets are coupled by prices and extremely reduced financial budgets.
resolute determination to ensure economic and Some of the value improvement initiatives (e.g.
environmental sustainability, particularly with capacity creep and debottlenecking) have already
regards to reducing greenhouse gas (GHG) emis- started to deliver to the company’s bottom line
sions. and increased the return on investment with no or
low capital expenditures.
Ras Laffan Port continues to be one of the largest
supply sources of cleaner energy to the world With regards to asset performance management,
primarily LNG, condensates and GTL products. It Downstream Development deployed standard-
provides security of energy supplies in addition ized KPIs for QP’s downstream assets and it also
to contributing towards the reduction of the delivered a standard business plan analysis in
global carbon footprint. 2016. As part of fuel pricing reforms in Qatar, the
directorate completed the review on fuel pricing
Another important port, Mesaieed, continues to and it then successfully implemented a transpar-
be one of the largest supply source for fertilizers ent market-based pricing of gasoline and diesel in
in the world and supports the growing demand the country, leading to a substantial removal of
for food in major markets in the world, such as subsidies from the government.
India and China.
Utilizing Resources
DOWNSTREAM DEVELOPMENT
QP efforts in the development of the Laffan Refinery 2
QP’s Downstream Development Directorate is (LR2) project bore fruit with the refinery’s successful
tasked with ensuring the maximization and pres- commercial startup in December 2016. The
ervation of long-term value for the corporation’s project doubled Qatar’s condensate refining
downstream business as well as with developing capacity to a total of 292,000 barrels per day, and it
downstream growth plans and implementing also diversified the sources for jet fuel and diesel
QP’s downstream asset strategy. In 2016, the supply in the country.
directorate worked on setting a new strategic
direction and standards as well as on delivering

In addition, Qatar Petroleum has been studying achieve the highest possible production with
the utilization of available surplus ethane to be maximum product value and minimum conver-
used as feedstock for the production of high-val- sion cost, and to meet customers’ expectations.
ue downstream products (such as polyethylene,
vinyl chloride monomer, and monoethylene In 2016, a total feed (crude and condensate) of
glycol) in a brownfield setting. This will further 44.36 million barrels was recorded against the
maximize the value of exploiting synergies with plan of 42.66 million barrels, thus registering a 4%
existing downstream assets. Proposals from the increase above the plan. The condensate intake
four ventures had been evaluated and recom- from RasGas was increased to compensate for a
mendations were subsequently made to senior reduction in condensate availability from North
management for the final decision on the way Field Alpha.
forward. The refinery maintained a steady supply of petro-
As for the Zekreet project, the technical evalua- leum products to the market, without any inter-
tions for phases 1 and 2, the front-end engineer- ruption, to satisfy the demand. Gasoline grades of
ing design (FEED) of Zekreet phase 1 and the 91 and 95 RON were introduced in August 2016 to
pre-FEED for phase 2 were completed in 2016. The replace the 90 and 97 RON grades. Meanwhile, the
evaluation and recommendations for the gasoline operation of Refinery I was stopped in September
grades in order to maximize value addition to 2016 and the unit had since been mothballed.
feedstock were also completed. Downstream An Operational Excellence Program was imple-
Development successfully conducted cost mented under the theme “Doing the right things
challenge sessions, which had resulted in a USD in the right way every day.” A total of nine opera-
55- million capex reduction for phase 1. The tional excellence initiatives, apart from several
relevant stage gate documents had been identified improvement programs, were imple-
prepared and presented to senior management, mented in a very effective manner at the refinery.
and a decision was made to defer the engineer- In addition, a “super operator program” was
ing, procurement and construction (EPC) of initiated to develop the competency of operators
Zekreet phase 1 until the FEED of phase 2 is com- to take over the operation of units other than their
pleted. The phase 2 development is ongoing and present area of deployment. With this program,
the key milestones achieved in 2016 include tech- operators are expected to acquire the required
nology selection and the kick-off of the FEED skills to run the other units, as and when required.
phase.
REFINING
Qatar Petroleum aims for maximum benefit from
its petroleum resources by engaging in all refining
activities that would add value to these resources.
QP’s refinery operates with the utmost attention
to safely and environmental responsibility to

Re ning Performance
Feed Intake All quantities are in '000 barrels
Feed Business Plan Actual % of the Plan
Ref. II (QL Crude) 27,778 28,280 102

U-61 (NFC + RGC) 9,121 9,804 107
U-65 (DSC & NFC + RGC) 5,763 6,276 109
Total 42,663 44,360 104
Feed Intake ’000 Bbl
50,000
40,000
30,000
20,000
10,000
0
Ref. II (QL Crude) U-61 (NFC + RGC) U-65 (NFC + RGC & Total
NFC + RGC)
Business Plan
Actual

Sulfur MT
Production ‘000 Bbl
12,000
10,000
8,000
6,000
4,000
2,000
0
LPG PCN MOGAS 97R/ MOGAS 90R/ JET A-1 LGO DCO SRFO Sulfur
95R 91R MT
Business Plan
Actual

Local Sales
All quantities are in '000 barrels
Local Sales Business Plan Actual % of the Plan
LPG 1,436 1,445 101

MOGAS 97R / 95R 9,089 7,855 86
MOGAS 90R / 91R 6,741 6,939 103
JET A-1 22,300 25,230 113
LGO 19,720 18,131 92
30,000
25,000
20,000
15,000
10,000
5,000
0
LPG MOGAS 97R/ MOGAS 90R/ JET A-1 LGO
95R 91R
Business Plan
Actual

Exports (MT)
Products Naphtha Gasoline 97/95R DCO Fuel Oil

Export Quantity 499,656 237,362 214,002 13,241
EXPORTS (MT)
600,000
500,000
400,000
300,000 Naphtha
200,000 499,656 Gasoline
100,000 97/95 R DCO
237,362 214,002 FO 13,241
0
Business Plan
Actual
Imports (MT)
Products Jet A-1 LGO
Import Quantities 2,102,635 529,335
IMPORTS (MT)
2,500,000
2,000,000
1,500,000 JET A-1
1,000,000 2,102,635
500,000
LGO
0 529,335

Number of Shipments
Products Gasoline
Naphtha Jet A-1 LGO DCO FO
97/95R
Shipment Nos. 20 11 61 18 13 13
Shipments (Nos.)
70
60
50
40 Jet A1
Naphtha
61
30
20
20
10 Gasoline Jet A1, LGO 18 DCO FO
97/95 R 11 61 13 13
0

MESAIEED OPERATIONS Operational Excellence
Mesaieed Operations is responsible for ensuring A large number of operational excellence initia-
the safe, efficient, and reliable operations of the tives were ongoing at Mesaieed Operations in
Mesaieed NGL Complex, the Mesaieed Tank Farm 2016 to achieve full alignment with the QP corpo-
and Terminal as well as the Hydrocarbon Pipeline rate vision and strategy.
Transmission & Distribution System in Qatar. Its
The first is on maintenance excellence, with the
mandate also includes supplying the fuel/feed- objective to improve the work process of mainte-
stock requirements for power plants and indus- nance planning and execution to ensure high
tries in Qatar as well as meeting the export targets operational availability and reliability of the assets
in line with the objectives of QP’s Operations and equipment while obtaining significant and
Directorate. sustainable maintenance cost reductions. Anoth-
In 2016, fuel gas supplies to power plants and er focus is on strengthening frontline staff align-
industries were maintained, mostly without inter- ment through clear and timely communication to
ruptions, in spite of several cases of major supply all Mesaieed Operations staff on targets, progress,
disruptions. Extra gas supplies due to consumer results and ongoing initiatives as well as the
outages were accommodated successfully in the creation of an organizational environment condu-
cive to open, transparent and honest communica-
distribution grid to avoid any flaring. Gas receipt
tion across organizational levels and boundaries.
and distribution flexibility was significantly
improved through the commissioning of new 36” In its efforts for increased operational excellence,
and 30” pipelines sections within Ras Laffan. QP remains focused on turnaround governance
and management. Its main purpose is to achieve
Also in 2016, a total of 54,000 barrels of crude oil
end-to-end process standardization for turn-
were recovered from sludge at the tank farm
arounds to sustainably improve cost efficiencies.
through demulsification. With careful review of oil
A cross-department Turnaround Team is now
storage requirements and improved planning
operational at Mesaieed Operations and the
and scheduling, one crude oil tank was decom- scheduled turnaround of NGL-4 in 2017 has been
missioned and the planned tank rehabilitation chosen as the pilot project for its Turnaround
project was cancelled. Governance Procedure.
Mesaieed Operations successfully completed 21.4 Mesaieed Operations is also a full participant in
million man-hours without a Lost Time Incident ongoing initiatives throughout QP, such as those
(LTI). There were no recordable injuries in the related to cyber security, business continuity
department during 2016. All plants were operat- management, enterprise risk management and
ed in compliance with the agreed consent-to-op- HSE governance.
erate (CTO) conditions of the Qatar’s Ministry of
Municipality and Environment. Mesaieed Opera- ORYX GTL
tions is certified to ISO 9001 (Quality Manage-
Oryx GTL is the world’s first large scale gas-to-liq-
ment System), ISO 14001 (Environmental Man-
uids (GTL) plant to use low temperature slurry bed
agement System) and OHSAS 18001 (occupation-
Fischer-Tropsch technology. Located in Ras Laffan
al health).

Industrial City, the plant has a design capacity of fractionate the high ethane yield NGL received
32,441 bpd. The plant converts natural gas into from the NGL-3 facility.
high-quality low-sulfur environmentally friendly
diesel, naphtha, and LPG. At present, the NGL Complex consists of the
following plants and facilities:
Oryx GTL uses natural gas from the North Field as
feedstock to produce GTL. The gas is delivered to - AGR-1/2, AGEU / SRU / TGTU plants for gas sweet-
Ras Laffan Industrial City facilities, where unwant- ening and sulfur recovery;
ed components are removed. The natural gas is - NGL-3 fractionation / extraction plants for
then sent to Oryx GTL as its main feed stream. processing gas/liquid feed from NFA;
Oryx GTL Limited, a joint venture between QP - NGL-2 stripping plant for processing OffSAG feed
(51%) and Sasol (49%), has been successfully from PS-1/2/3;
operating since 2006.
- NGL-1 / NGL-2 / NGL-4 (2 trains) fractionation
The company won the prestigious GSF Safety plants for gas/NGL processing, treatment and
Award 2016, which was awarded for the first time production;
in the region, and it was honored for its best over-
all achievement in health, safety and the environ- - Refrigerated tanks (4+4) for storing liquid LPG
ment over the last two years. (propane + butane);
NATURAL GAS LIQUIDS (NGL) - Atmospheric tanks (5) for storing plant and stabi-
lized field condensate;
QP’s natural gas liquids (NGL) processing facilities
have been in operation at Mesaieed since 1974 - NGL Jetty for exporting LPG and condensates.
when the original NGL-1 production train was The products of the NGL Complex are sweet lean
commissioned to process NGL received from the gas (NFLG), stripped associated gas (OffSAG),
Fahahil Stripping Plant located in the Dukhan oil ethane rich gas (ERG), LPG (propane and butane),
field. The re-built plant was commissioned in plant condensate (NGL condensate), liquid sulfur
1981. NGL-2 was commissioned in 1980 to and stabilized field condensate (NFC). These prod-
process associated gas produced from QP’s ucts are exported (propane, butane, and NGL
offshore production facilities (PS-1, PS-2 and condensate), supplied as feedstock to down-
PS-3). stream industries (ERG, NFC, OffSAG, butane,
In 1990, NGL-3 was commissioned to process sulfur), or supplied as fuel (NFLG) to State power
non-associated gas and condensate produced plants and local industries in Qatar.
from the North Field Alpha (NFA) platform locat- In 2016, the NGL Complex processed 100% of the
ed in Qatar’s offshore North Field. The gas sweet- available feed. Product losses (~ 0.35% of total
ening facilities (AGR/SRU) were commissioned in feed vs. allowed 1%) and plant unavailability
1993. (0.07-1.4% for different plants vs. allowed 3%)
In 2002, the NGL-4 facility was commissioned to were kept well-controlled.
receive high ethane yield NGLs from the Arab D
Gas Plant located in the Dukhan Field and to

2016 Production/Exports/Delivery
Production
Propane 3,037 mtpd
Butane 2,239 mtpd
NGL Condensate 1,242 mtpd
North Field Stabilised Condensate 27 kbpd
LPG + Condensate 101 kbpd
NF Lean Gas 672 mmscf/d
Offshore Stripped Associated Gas 54 mmscf/d

Ethane Rich Gas 4,120 mtpd
Sulfur (liquid) 174 mtpd
Exports
Qatar Land Crude Oil 100 kbpd
Full Range Naphtha 13 kbpd
Propane 2,987 mtpd
Butane 750 mtpd
NGL Condensate 1,131 mtpd

Local Fuel & Feedstock Delivery
Fuel Gas to Power Plants 984 mmscf/d
Fuel Gas to Industries 1,081 mmscf/d
Stripped Associated Gas to QAPCO 163 mmscf/d

Ethane to RLOC 129 mmscf/d
Ethane to QAPCO EP-2 39 mmscf/d
Ethane Rich Gas to Q-Chem 2,455 mtpd
Ethane Rich Gas to QAPCO 1,657 mtpd

Crude Oil to QP Refinery 77 kbpd
Butane to QAFAC 1,345 mtpd
Butane to Q-Chem 10 mtpd

Sulfur (liquid) to QAPCO 174 mtpd

BRINGING ENERGY
TO THE WORLD

Qatar Petroleum has focused its post-reorganiza- products, while other QP departments provide
tion efforts on delivering its strategic objectives services to QPSPP through a Service Level Agree-
by becoming more effective and efficient in the ment.
way it works and competes, and by delivering
superior integrated products and services across The Marketing Directorate is also responsible for
the entire oil & gas value chain. This included the supply of gasoline, jet fuel and gasoil to the
providing more integrated and attractive value domestic market either from domestic supply
propositions to its international customers and sources or through imports, and it ensures the
partners, while ensuring high technical, commer- safety and operability of QP ports by ensuring
cial, and financial effectiveness. that only vessels that have passed the SERDAL
Marine Quality Assurance screening system are
QPSPP allowed port entry.
On 25 June 2016, Qatar Petroleum announced The Marketing Directorate supports the delivery
the integration of Qatar International Petroleum of the production and revenue targets of QP and
Marketing Company Ltd. (Tasweeq) into the QP its project partners by ensuring that realized
family, which included transitioning Tasweeq’s prices are optimized, liabilities are minimized,
employees, assets and customer relationships and that crude oil and petroleum products are
into the QP organization. Tasweeq became “Qatar shipped in an efficient manner and on a timely
Petroleum for the Sale of Petroleum Products basis.
Company Ltd. (QPSPP), which was established
pursuant to Decree Law No. (15) of 2007 concern- In 2016, none of the producing entities was
ing the Organization of Marketing and Selling of adversely affected in delivering its production
Regulated Products Outside the State of Qatar, objectives as QPSPP and the Marketing Director-
and the company is wholly-owned by the State of ate successfully exported all crude oil and regu-
Qatar. lated products on a timely basis. The Laffan Refin-
ery 2 was brought on line during the 2nd half of
QPSPP's mandate under the law is to sell “regulat- 2016, and QPSPP managed to export all refined
ed products” from entities producing the same in products and surplus condensate as scheduled.
the State of Qatar for export. Regulated products
are those designated as such by the State of In addition, not only was a material value uplift
Qatar, and they currently include propane and relative to internationally recognized benchmark
butane or liquefied petroleum gas (LPG), field prices achieved (as confirmed by an external
and plant condensates, sulfur, refined petroleum third party consultant) but also a significant
products, gas-to-liquids (GTL) naphtha, and GTL cost/efficiency gain was delivered, allowing a
jet fuel produced within Qatar. Qatar Petroleum significant reduction in marketing charges for the
was appointed as QPSPP's Marketing Agent. benefit of the producing entities in 2017.
The successful integration was completed on 19 An independent third party consultant

December 2016. On the same day, the new confirmed that during 2016, Tasweeq/QPSPP
Marketing Directorate was created to market complied fully with Law No. 15 of 2007, which
QPSPP’s crude oil and non-regulated specialty sets out the principles, standards and rules in

relation to corporate governance, ethics and
compliance, audit, equal treatment of producing
entities, and the independent verification of
net-back calculations.
In 2016, there was never a shortage of any prod-
uct in the domestic market and there was also no
safety incident at any of the QP ports due to
sub-standard/high-risk vessels being allowed to
enter.
QPSPP is one of the largest marketing export
entities in the world and delivered a material
value uplift relative to internationally recognized
benchmark prices through professional sales
processes, product substitution and the exploita-
tion of logistical and scheduling optimization
opportunities.
OCEAN LNG LIMITED

On 31 October 2016, Qatar Petroleum established
“Ocean LNG Limited” for the purpose of market-
ing its future international LNG supply portfolio
sourced outside of the State of Qatar.
The decision to establish a marketing entity to
manage future LNG supply portfolio sourced
outside of Qatar was driven by QP’s aspirations to
continue to be a global LNG leader, and to invest
in LNG projects outside Qatar. It is a global LNG
marketing arm that will be instrumental in mone-
tizing opportunities to be pursued and captured
outside Qatar.
Ocean LNG Limited is a joint venture company
owned by a QP affiliate (70%) and an ExxonMobil
affiliate (30%). A branch office of Ocean LNG
Limited was established in the Qatar Financial
Centre in Doha to manage and undertake the
activities of Ocean LNG, reinforcing Doha’s
position as the world’s LNG capital.

INDUSTRIAL
CITIES

Qatar Petroleum’s Industrial Cities Directorate is gas (LNG), gas-to-liquids (GTL) products, and
responsible for the provision of critical infrastruc- other derivatives from the natural gas produced
ture, facilities, land, utilities and other key services in Qatar’s massive North Field.
in Ras Laffan Industrial City (RLIC), Mesaieed
Industrial City (MIC), and the Dukhan Concession Wholly owned by Qatar Petroleum, RLIC began
Area (DCA). operations in 1996. Its mandate is to provide infra-
structure, facilities and services in the city to
All three industrial cities are currently equipped enable the establishment and functioning of
with the infrastructure and facilities needed to industries to exploit the State of Qatar’s vast gas
meet their ongoing requirements, while the reserves in the North Field, which lies 80 kilome-
requirements of new projects continue to be ters offshore from Ras Laffan.
studied by QP for future implementation. Such
requirements include providing utilities (power in RLIC has a strategic location at the center of the
Dukhan and cooling water in Ras Laffan), ports Arabian Gulf, between the Far East and Europe on
services, emergency services and workers’ accom- the international maritime shipping route, which
modation. enables hydrocarbon products to be efficiently
transported to markets all over the world.
Further strategic outsourcing was conducted by
Industrial Cities as part of cost optimization mea- Ras Laffan is developed and operated specifically
sures, and a significant reduction in operating and for natural gas-based industries that produce gas
capital expenditures was also achieved in products and their derivatives from natural gas
response to the drop in oil prices. All facilities and produced in the North Field. RLIC offers infrastruc-
services as required by industries were delivered ture, facilities and services in the industrial city,
as per the agreements and with a high-level of with the aim of providing industries and other
customer satisfaction as evidenced in the annual stakeholders an efficient and competitive
customer survey. business environment.
The Industrial Cities Directorate is adding greater Ras Laffan Port

value by actively supporting the implementation Ras Laffan Port has continued to be the world’s
of various QP projects such as the Laffan Refinery largest single LNG export facility, thereby cement-
2, RasGas Flow Assurance, Barzan Gas, Zakreet, ing QP’s dominant position in the global LNG
ethane exploitation, Bul Hanine Redevelopment, market. Given its scale and its strategic geograph-
and the Jet-A1 storage and pipeline facilities by ical location relative to international markets, Ras
providing the land, infrastructure, utilities, port Laffan Port gives QP the competitive edge in a
and other services as required. highly competitive global LNG market. In addi-
tion, it continues to be one the world’s largest
sources of cleaner energy supply, primarily with
RAS LAFFAN INDUSTRIAL CITY LNG, condensates and GTL products. It provides
security of energy supplies besides contributing
Ras Laffan Industrial City is located 80 kilometers towards the reduction of the global carbon
northeast of Doha and is the hub for natural footprint.
gas-based industries producing liquefied natural

gas liquids plant and a steel mill, in addition to oil
Major Industries in Ras Laffan receiving terminal and export facilities. The exist-
ing infrastructure and utilities network is being
Qatargas completely upgraded to ensure state-of-the-art
facilities and services in support of existing as well
RasGas as new industries.
Dolphin Energy
MIC’s Mesaieed Port has continued to support
Pearl GTL QP’s downstream business strategy by enabling
Oryx GTL the export of oil and other value-added
petrochemicals and other hydrocarbon products
Ras Laffan Olefins Company to international markets. Mesaieed Port also
Al Khaleej Gas continues to be one of the world’s largest sources
of fertilizer supply, thus supporting the growing
Barzan Gas Company
global demand for food in major markets such as
Laffan Refinery India and China.
Ras Girtas Power Company In line with QP’s direction to focus on its core oil &
Ras Laffan Power Company gas business, the Industrial Cities Directorate
completed the transfer of MIC’s Light and
Qatar Power Company (QPower)
Medium Industries Area to Manateq. In addition,
Erhama bin Jabr Al Jalahma Shipyard the municipal functions and waste management
Gasal Q.S.C. area in MIC are also in the process of being trans-
ferred to the Ministry of Municipality and Environ-
Qatar Solar Technologies ment (MME).
MESAIEED INDUSTRIAL CITY

Mesaieed Industrial City is located 40 kilometers
south of Doha and is the hub for the production of
petrochemicals and fertilizers, oil refining, gas
processing and distribution, as well as the
manufacturing of steel, aluminium and plastic
products in Qatar. The city has transformed itself
over the years from a simple port facility exporting
crude oil into Qatar’s main industrial city and center
for petrochemical and oil refining activities.
MIC’s industrial area accommodates an oil refinery, a
fertilizer complex, petrochemical complexes, natural

Major Industries in Mesaieed
QP Natural Gas Liquids Complex
QP Refinery
Qatar Petrochemical Company Ltd. (QAPCO)
Qatar Fertilizer Co. (QAFCO)
Qatar Chemical Co. (Q-Chem)
Qatar Fuel Additives Co. (QAFAC)
Qatar Vinyl Co. (QVC)
Qatar Steel Co. (Qatar Steel)
Qatar Lubricants Co. (QALCO)
Qatar Navigation (Milaha)
Qatar Olefins Co. (QATOFIN)
Qatar Aluminium Limited (QATALUM)
SEEF Limited
Gasal Q.S.C.
Mesaieed Power Company (M Power)

DUKHAN CONCESSION AREA
The Dukhan Concession Area is located 84 kilome- QP’s medical clinic in Dukhan continues to
ters west of Doha and is the hub for onshore oil & provide a high standard of comprehensive prima-
gas production operations in Qatar. QP’s Industrial ry health care, occupational health and dental
Cities Directorate is responsible for managing the services. It also provides pharmacy, pathology,
activities in the common areas of the DCA, exclud- x-ray, ultrasound and physiotherapy services for a
ing oil & gas operations in the Dukhan Field. This population consisting of QP staff and their fami-
includes the provision of land, general infrastruc- lies, local residents, police and other servicemen,
ture, utilities, and waste treatment, as well as fire and government officials. A 24-hour emergency
and rescue services and commercial security. The service with full-fledged ambulatory care is in
directorate also provides the required land, infra- operation linking with the State’s Emergency
structure, and utilities for the Enhanced Water Medical Services. The Dukhan Medical Clinic is
Flood and Carbon Dioxide Water Alternating Gas equipped with a mobile clinic and a Mass Casualty
projects to sustain and improve the yield of the Incident Vehicle, which will enable QP to deliver
Dukhan Field. prompt and effective medical services during
emergencies.
Dukhan gained its significance with the discovery
of crude oil in the area in the 1930s and 1940s. The QP’s medical clinic also operates an ambulance
first shipment of crude oil was exported from station at Umm Bab. This station covers QP’s
Qatar on 31 December 1949. Since then, Dukhan concession area and provides emergency care
has witnessed gradual development to accommo- and patient transportation to those at the indus-
date oil and gas operation facilities in addition to trial and non-industrial sites.
housing, medical, recreational and educational
institutions and services. Dukhan is being further Dukhan Township
developed and modernized to better meet QP’s oil The Dukhan Township is home to more than 5,000
and gas operations and the communities’ require- residents made up of QP employees and their
ments. families.
The various operations and activities in the It is equipped with all modern facilities such as an
Dukhan oil field, which extends over an area of international school, a cinema, recreation center,
approximately 640 square kilometers, are man- fitness center, golf club and a water sports club. A
aged and conducted by QP’s Operations Director- business plaza is also available in DCA, and it com-
ate. prises of supermarkets, restaurants, pharmacy
Fire and rescue services operate from four strate- and other related sales outlets, banks, money
gically located fire stations in Dukhan, Zakreet, exchange firms, a post office and other govern-
Fahahil and Umm Bab. The division provides fire ment service offices.
cover and emergency response service delivery to
QP’s oil and gas plants and other facilities in the
entire Dukhan area, including accommodation for
QP personnel and their families, workshops, QP
administration facilities, etc.

OPERATING
RESPONSIBLY

Qatar Petroleum is committed to protecting our the provision of support in the implementation of
shared natural environment by applying their annual HSE objectives so as to effectively
world-class environmental standards and practic- ensure improvement of HSE performance.
es in all its operations. This is an approach that
makes good business sense, particularly in a To help ensure and to track the safety of its opera-
region suffering from water scarcity, low air quali- tions, the Projects, Engineering & Procurement
ty and fragile natural habitats. Services Directorate has established an HSE
performance database, which has facilitated
To achieve this, QP uses proactive environmental reporting in this area. In 2016, it achieved a Lost
management, implement optimization programs, Time Injury Frequency Rate (LTIFR ) of 0.0781,
and invest in leading technologies and large-scale which was below the corporate target of 0.1114. It
groundbreaking projects, which are recognized also promoted HSE awareness and further
around the world. Measuring and managing a improved the safety culture through its QHSE
range of material environmental issues help communication platform and by introducing a
support the achievement of the corporate strate- monthly safety theme, implementing corporate
gy and create value for the company and the HSE values and policies at project worksites, and
country. conducting management HSE site visits to recog-
nize and reward outstanding HSE conduct and
CORPORATE HSE & QUALITY behavior.
The Corporate Health, Safety, Environment & Business Continuity Management
Quality Department, which is part of QP’s HSE &
Business Services Directorate, is responsible for In 2016, the Corporate HSE&Q Department led
developing and guiding the implementation of the continued development of QP’s Business
governance frameworks for HSE&Q and sustain- Continuity Management System (BCMS) with the
able development to provide assurance to the QP objective to ensure that the corporation is
President & CEO and the QP Board of Directors prepared to handle and mitigate the effect of
that all HSE risks related to QP’s activities are major disruptive events on QP’s critical business
controlled and managed in line with State and activities. The department defined the corpo-
corporate requirements. rate-level BCMS governance requirements and
completed the QP Business Impact Analysis and
QP continued to enhance its safety performance Response Strategies. In addition, it spearheaded
in 2016, which can be partly attributed to the the development of Business Continuity
success of the Annual HSE Objectives program, Response Plans (BCRPs) and Business Continuity
which was launched by the Corporate HSE&Q Plans (BCPs) for QP’s core business and corporate
Department and carried out in collaboration with support services
all QP directorates and departments.
Thus far, a total of seven QP departments have
This annual HSE planning and implementation already been certified to ISO 22301, which is the
process involves the department’s identification management systems standard for BCM. The
of HSE Focus Areas, the dissemination of the same Corporate HSE&Q Department aims to increase
to all QP directorates and departments, and then the number of ISO-certified departments every

year to eventually cover the entire QP organiza- • Implementation of systems to accurately mea-
tion. sure total electricity consumption across QP;
QP has been providing support and promoting • Implementation of an energy efficiency and
the use of the BCMS in all QP-affiliated companies management program by monitoring electricity
and joint ventures (JVs) to ensure the robustness consumption throughout QP’s facilities; and
and resilience of the whole industry to handle Installation of sensors on most of our electrical
major disruptive events. equipment, which allows lights and equipment
not in use to be switched off or put to sleep mode,
In line with its mandate, the department also particularly at the end of each workday and on
developed in 2016, without any third party weekends.
engagement, the QP crisis management system
and this included the formulation of the QP Crisis Overall, direct energy consumption in QP has
Management Plan and the establishment of the fallen from 81 million gigajoules (GJ) in 2015 to 68
Crisis Management Committee and the Crisis million GJ in 2016. During this time, QP was also
Control Center. The department has also been able to increase hydrocarbon production, which
working for an alignment with QP end-users, JVs resulted in a significant improvement in our
and government authorities for an effective upstream energy intensity. This means that QP is
unified command, incident communication and becoming more efficient at using energy to
resource management in case of any crisis situa- generate our product and, in doing so, we deliver
tion. better environmental and economic outcomes for
the company and the state, directly contributing
Maximizing Energy Efficiency to the achievement of goals set out in Qatar
Becoming more efficient in the use of energy to National Vision (QNV) 2030.
extract, refine and further develop hydrocarbons PROMOTING HEALTH AND SAFETY
leads to positive economic and environmental
outcomes for QP and Qatar. This win-win scenario Qatar Petroleum places the utmost importance
provides an overwhelming case for the strategic on a safe and healthy working environment,
drive to improve energy efficiency. ensuring that employees, contractors and the
wider community at large are protected from
How we are responding: harm.
• Our Offshore Operators Forum (see Harnessing A strong safety culture ensures that our employ-
Resources) has implemented a range of ener- ees and contractors go home safely to their fami-
gy-saving initiatives across oil and gas field devel- lies and friends every day. To this end, QP dedi-
opment and production activities. cates various efforts towards the goal of zero
injuries. Our employees and contractors worked
• A study into streamlining aviation logistics has over 90 million hours in 2016, a rise of 2% from the
recommended the development of a Joint previous year with zero work-related fatalities for
Helicopter Project for a more collaborative and its employees; while our combined employee and
demand-based approach involving all offshore contractor recordable injury rates and lost time
operators. injury frequency both reached their lowest levels
in comparison to the last five years.

We have taken a number of steps to enhance QP’s meetings, and HSE bulletins. A detailed HSE
health and safety culture, including: Culture Survey has been developed and carried
out to assess the value of the initiative as well as to
• Enhancing the behavioral safety program for improve future effectiveness. Mesaieed Opera-
relaunch in 2017; tions also implements an Injury Prevention
• 1,071 of audit days to identify non-conformities Program after analyzing the injuries recorded over
were completed in 2016. the last six years to identify common themes and
vulnerable areas.
• Fitness-to-work (FTW) examination services
provided; In line with its safety objectives, Mesaieed Opera-
tions is also promoting HSE ownership and aware-
• Implementation of guidelines, training and ness. Under this initiative, all staff are advised to
awareness on the use of the heat stress index and “own” HSE issues like CTO compliance, waste man-
implementation of controls; agement, noise protection, industrial hygiene
monitoring, and protection from naturally occur-
• Evolution of our HSE Governance Framework &
ring radioactive materials (NORM). This is being
effective implementation of annual audit plans;
achieved through periodic awareness programs
• Strengthening of the QP HSE recognition conducted at control rooms and offices during
process to ensure that it is representative and normal working hours and without disrupting
transparent. routine activities.
QP’s Offshore Operations Department has Promoting Workers’ Welfare

ensured the strict implementation and regular
Workers’ welfare is central to retaining talent and
update of safety policies, environmental regula-
ensuring high performance. Various initiatives
tions and safe working practices. It also intro-
and events were organized to support an
duced a new shared guideline for identifying
increased worker welfare across the entire organi-
Safety Critical Equipment (SCE), an e-learning
zation. This included holding the Workers’ Welfare
pack for SCE as part of its process safety initiative,
and Healthy Lifestyle Forum; organizing a Food
and guidelines for behavioral safety coaching and
Control and Hygiene Awareness Session focusing
for safety moments as part of its leadership devel-
on the prevention and control of foodborne
opment initiative. Furthermore, it continued to
illnesses; launching two events of Mesaieed TALK
implement and maintain its Safety Management
(MES.TALK) to provide a platform for innovative
System (SMS) in line with the SMS Transformation
ideas and interesting topics; and organizing a
Project, with emphasis on taking full ownership in
range of sport activities for employees and their
the delivery on safety standards within single-point
families annually during the National Sport Day.
accountabilities applicable to Offshore Operations
with a clear differentiation from QP governance As part of collaborative efforts to ensure contrac-
role and the operational implementation role. tor workers’ welfare and to improve the living
condition and morale of the workforce, additional
In Mesaieed, high emphasis is placed on a strong
QP contractors’ accommodation and recreational
HSE culture to achieve performance excellence.
facilities were progressed in Halul in 2016, and
This is being done through in-house interactive
this project is expected to be completed in 2017.
programs and workshop sessions, town hall

The Jetty Boil-Off Gas Recovery Project
The Jetty Boil-Off Gas Recovery Project (JBOG)
is the biggest environmental project of its kind
designed to recover the gas flared during
liquefied natural gas (LNG) loading at Ras
Laffan Port. At a cost of nearly $1 billion, JBOG
is also one of the largest environmental invest-
ments in the world.
Located at Ras Laffan Industrial City, JBOG
represents a significant milestone in the State
of Qatar’s efforts to minimize the carbon
footprint of its LNG industry. The project -- led
and operated by Qatargas on behalf of QP and
THE ENVIRONMENT AND the LNG producers -- aims at reducing flaring
CLIMATE CHANGE at the six LNG loading berths at Ras Laffan by
90%, equivalent to an annual GHG savings of
We share the concerns of governments and the 1.6 million tons of CO2. It will also help recover
public about climate change risks and recognize 29 billion standard cubic feet (bscf ) of gas per
that the use of fossil fuels to meet the world’s year, which is enough gas to produce 750 MW
energy needs is a contributor to rising green- of electricity to power 300,000 homes.
house gases (GHGs) in the earth’s atmosphere.
The JBOG Project improved the recovery of gas
Qatar Petroleum has tackled a number of issues to from all LNG berths to an average of 92.4% in
help this endeavor including establishing a joint 2016, from 88.2% in 2015.
venture solar power company, maintenance of
zero flaring for all PSA operators, continued
efforts to maintain minimum gas flaring level
during the exploration, production and transpor-
tation of hydrocarbons, and continued improve-
ments to the Jetty Boil-off Gas Recovery (JBOG)
Project to increase recovery of gas from all LNG
berths.
Between 2015 and 2016, QP achieved a reduction
in scope 1 GHG emissions of 307,685 tonnes of
CO2e, which equates to removing, on average,
the annual emissions of 65,465 cars, according to
the US Environmental Protection Agency. As we
have increased our production while reducing
emissions, the amount of GHG produced per
tonne of hydrocarbons has also been reduced.

Air Emissions also implementing the Halul Gas Flaring Study
to identify the sources responsible for excess
Qatar Petroleum has met and exceeded air emissions gas glaring and then to recommend possible
standards and guidelines in Qatar to help protect solutions.
the health and well-being of employees, contractors,
the local environment, and local community. Oil Spills
To help achieve further success, two sulfur recovery To effectively address the risks posed by oil spills,
projects are in the final stages of commissioning QP’s Offshore Operations reviewed and updated
in Dukhan and Mesaieed. An NOx compliance the oil spill response plans for Halul Island, PS-2
assessment was completed and the results were and PS-3 as well as for Mesaieed Port and Ras
shared with the MME. Mesaieed Operations Laffan Port. It held coordination meetings with
undertook a Leak Detection and Repair (LDAR) port management officials to improve the oil spill
project, thus reducing emissions by 47% from response preparedness, and it also conducted
plants and facilities, and a calibration review of air joint exercises with the respective port teams at
emissions monitoring equipment was initiated. Ras Laffan and Mesaieed. Oil spill response training
and exercises on oil spill emergencies were also
The development of international best practice undertaken with staff from Halul, Occidental
Continuous Emissions Monitoring System (CEMS) Petroleum of Qatar (Oxy) and Total, and a project
and LDAR standards for all operations to comply was initiated involving a GIS interactive map for
with continued in 2016. Also ongoing is the oil spill response.
installation of a vapor recovery system to reduce
volatile organic compounds (VOC) emissions Managing Water Resources
from crude oil to acceptable levels.
Given that Qatar Petroleum operates in one of
Total air emissions continue to fall across QP the most water-stressed regions in the world and
operations, despite the change in calculation that water scarcity is an increasingly urgent
methodology, as improvements in monitoring global issue, water conservation is of great
and detection and repair programs continue to importance to our business.
be implemented. The reductions help QP to meet
or exceed regulatory requirements, improve the QP’s implementation of a Treated Industrial
air quality within its industrial cities and in Qatar Water Project was designed to achieve the
and, in some cases, improve production through national policy of near-zero liquid discharge to
a reduction in leaks. sea. A detailed Produced Water Re-Injection
(PWRI) performance evaluation was underway,
On its part, the Offshore Operations Department while an API Oil-Water Separator, which will treat
continues to ensure that its operations are in line oily water before disposal, recover suspended oil
with national and international environmental and improve waste water quality to meet envi-
standards, particularly those set by environmen- ronmental standards was integrated.
tal regulatory authorities, by ensuring that all
emissions and effluent discharges within QP has promoted various studies on water reduction
Maydan Mahzam and Bul Hanine fields are and efficient use within our facilities, and the
within the acceptable limits. The department is selection of an optimum treatment facility for

produced water re-injection in order to minimize Protecting Biodiversity
water disposal.
QP recognizes the urgent need to safeguard the
Within our field development operations, the country’s plant and animal species, and takes
successful application of swell packer technology extra measures to ensure that its operations leave
in Idd El-Shargi field provided improved zonal no damaging impact on the country’s natural
isolation, which led to a reduction in the volume habitats.
of water produced and saved costs. Efforts to
reduce water discharge to the sea, in line with To that end, QP invests in several initiatives to
recent national environmental regulations, are protect wildlife and enhance biodiversity in Qatar
ongoing and yielding positive results. including:
Reducing, Reusing and Recycling Waste • Promoting studies on conservation, such as the
ongoing marine turtle conservation and monitor-
Qatar has set a national objective to increase the ing project;
percentage of waste that is diverted from landfills
by reducing waste creation through design or by • Providing public awareness on various measures
reusing and recycling waste once it is created. being taken to conserve the hawksbill turtles in
Qatar.
To this end, QP has continued the development
and implementation of waste management stan- We have achieved a very good understanding of
dards, as well as the monitoring of drilling waste the hawksbill turtle in Qatar, and increased turtle
levels from onshore and offshore operations. It hatching events based on the support and
ensured strict regulatory compliance with the monitoring provided. The establishment of the
Ministry of Municipality and Environment’s (MME) Turtle Information Centre in Fuwairit is also
licensing requirements regarding the waste helping to raise awareness within the local and
storage yard for Naturally Occurring Radioactive visiting community.
Materials (NORM), and carried out periodic
inspections of our hazardous waste facilities.
Furthermore, it organized training programs for
personnel on environmental awareness and
waste management.
QP reduced its hazardous waste production
between 2015 and 2016 and increased the
volume of total waste recycled by 32%, the major-
ity of which was non-hazardous. QP continues to
seek opportunities to reduce, reuse and recycle
waste materials because closing the loop will help
to avoid negative environmental outcomes and,
in many cases, could lead to cost savings or new
forms of revenue, as has been demonstrated by
some of our downstream investments, such as
Qatalum.

SUPPORTING OUR COMMUNITIES The directorate had successfully facilitated the
industries’ adoption of the MME’s Zero Liquid
Investing in Society Discharge regulations in Ras Laffan and Mesaieed.
As an important player in Qatar’s socio-economic Once fully enforced, this will significantly
development, QP takes pride in its role in contribute towards the conservation of water and
contributing to the sustainable development of the protection of the marine environment in
local communities. We value investing in our Qatar.
people’s time and skill, and providing financial Various environmental and road safety campaigns
support to projects and initiatives that create for the benefit of the general public were also
positive and long-lasting value for the State of carried out in 2016 in all three industrial cities. In
Qatar. addition, as in previous years, community fire
QP’s corporate social responsibility (CSR) initia- safety programs including drills and awareness
tives are designed to create a positive impact on campaigns were continued in 2016.
key economic, social, human and environmental The directorate, in collaboration with major
areas relevant to our country and to the various companies in Ras Laffan, has continued to
communities in alignment to the objectives of manage a Community Outreach Program (COP)
QNV 2030 and the National Development Strate- for Qatar’s northern area. In 2016, the COP imple-
gy (NDS). mented various initiatives for the benefit of the
Our initiatives include investments in local and community. These included the establishment of
national activities, forums and events focused on a community park in Al-Khor, the supply of equip-
sports, health, education, culture, environmental ment for the Intensive Care Unit of Hamad Hospi-
protection, and civil defence. tal in Al-Khor, the refurbishment of the beach in
Al-Dhakira, as well as the launching of sports,
recreation and personal development programs
HSE & Community Development at
for women and the elderly.
Industrial Cities
The Industrial Cities Directorate adopts a
two-pronged focus on HSE, with primary
accountability set on QP’s own operations in
addition to facilitating and promoting effective
risk management by all industries operating in
Ras Laffan, Mesaieed and Dukhan.
The collective safety and environmental risks
posed by the operations of the various industries
have continued to be managed effectively
through the enforcement of QP’s standards,
which will ensure the sustainability of the three
industrial cities.

ENABLING
PEOPLE

OUR PEOPLE The QP People Agenda is a number of integrated
initiatives, which constitute a huge change
Our people are our most valuable asset. Qatar journey. Each initiative is allocated to (a) growing
Petroleum takes special pride in its diverse and a highly capable and motivated workforce with
talented workforce, which covers a spectrum of emphasis on Qatari development, (b) driving
more than 80 nationalities from around the world, sustained performance of QP’s organization, its
and who brings with them different perspectives structure, processes, systems, policies and culture,
and experiences that contribute to our success. and (c) enhancing the affiliation of employees
QP seeks to cultivate this diversity and to create with QP and their commitment to collaborate,
an inclusive and respectful work environment. leading to increased performance.
Our Code of Ethics requires employees to treat all In 2016, significant work was completed on the
persons fairly regardless of race, color, national QP People Agenda. Data on best practices were
origin, sex, marital status, age, religion, creed or gathered and new processes were designed.
political belief, physical handicap or disability, or
status. A highlight in 2016 was the roll out of the Human
Capital Service Center (HCSC). This is an example
QP’s diversity is driven by its growing attractive- of QP’s drive to enhance employee welfare and
ness as an employer. QP offers challenging and engagement. The HCSC consists of a helpdesk, an
meaningful jobs and it presents opportunities for E-helpdesk and a call center. It provides employees
professional development and training to attract with support and advice on matters related to
and retain the best talent at both local and human resources and learning & development.
international levels. Measuring and managing a
range of social and human issues helps support The HCSC also provides recruitment-related
the achievement of our corporate strategy and information and assistance to people interested
also helps create more value for the corporation in a career in QP. The feedback received so far has
and the country. been very positive.
Another example is the implementation of a new
onboarding process, which started in September
QP PEOPLE AGENDA 2016. Another major milestone, related to leader-
In 2016, QP launched a new corporate vision: “To ship development, was the design of leadership
become one of the best national oil companies in competencies and values. Finally, QP completely
the world, with roots in Qatar and a strong inter- reviewed its Technician Program, which is further
national presence.” This vision is part of the corpo- discussed below.
rate strategy, which is built around six themes and
a set of enablers. Human capital is one of the strat-
egy’s key enablers, covering the development of QATARIZATION
leadership skills and the recruitment, retention
and development of the necessary skilled work- In 2016, QP continued striving to meet its Qatariza-
force in all areas, with a particular emphasis on tion targets by identifying and preparing Qataris to
the development of skilled Qatari nationals. enter the workforce at all levels. QP has a Qatariza-
tion plan, which takes a multi-pronged approach

to advancing the development of the national edge and skills required to perform the key responsi-
workforce. Nationals can join QP through any of bilities of their target job, they take over that
the following: vocational training, university position.
scholarships, work experience, personal develop-
ment plans, and experienced recruitment. Each year, QP offers scholarships to Qatari
students in order to meet the needs of the energy
Qatari secondary school graduates and QP and industry sector for a highly qualified work-
employees can enroll in vocational and university force. These scholarships provide opportunities
programs, including: for Qatari students to continue their higher
education studies within or outside Qatar. The
TP – Technician Program scholarships are intended specifically for those
DP – Diploma Program Qatari students who aim to have a career in the
FP – Fireman Program oil & gas industry or related business sectors.
UP – University Program
FEP – Further Education Program Throughout the year, QP maintains an open door
with students, ensuring that they have the
A major initiative started in 2016 was the com- required support to successfully complete their
plete overhaul of the Technician Program. This has degrees and eventually join the workforce.
led to a reduction in the program’s duration from
3.5 to only 2 years, and it has also resulted in a
closer alignment of the program with the needs of Qatar High-Performance Board Program
companies in the energy and industry sector.
As part of its efforts to effectively develop Qatari
Phase I of the new program was implemented in leaders, to manage corporate governance and to
2016. Work on this continues and Phase II is sustain growth and development, QP launched
planned to be implemented in 2017. the “Qatar Petroleum High-Performance Boards
University students and those from the College of Program” in association with the internationally
the North Atlantic - Qatar (CNA-Q) can apply for renowned Global Board Center of IMD Business
internships in QP. Work terms and workplace School in Switzerland.
learning are applicable to vocational programs. Over a period of nine months, the Qatar Petro-
These programs provide the students the oppor- leum High-Performance Board Program took
tunity to gain valuable on-the-job experience. over 100 Qatari board directors through five
Qatari nationals who join QP after graduating modules covering ethics, corporate governance,
from a university are assigned to a development finance and risk, strategy and leadership, all
position and a development plan is then designed tailored to the role and responsibilities of board
for them. This prepares them to take on a position members.
through on-the-job activities and assignments, The program aimed to provide a transformation-
technical and non-technical training courses, and al journey for more than 100 of QP and other
sometimes attachments to other departments or major Qatari companies, thus laying the founda-
organizations. Once employees on development tion for enhanced corporate governance in the
demonstrate that they have mastered the knowl- future.

BUSINESS
SUPPORT

PROJECTS, ENGINEERING & worked closely with asset and delivery organiza-
PROCUREMENT SERVICES tions to complete the project in record time, thus
demonstrating the value of close working
QP’s Projects, Engineering & Procurement relations between directorates.
Services Directorate has the mandate to direct the
execution of oil & gas, infrastructure and civil • Bul Hanine Redevelopment Project (Phases 1 &
capital projects, to develop and provide engineer- 2) -- Phase 1 of this project will offset field
ing expertise, and to lead the management of an production decline through the installation of
integrated supply chain. new offshore facilities as well as the reuse of
existing infrastructure. Phase 2, on the other
Following the completion of QP’s reorganization hand, will include a new Offshore Central
program in 2015, the directorate adopted a new Processing Complex to accommodate Arab C and
strategy of carrying out more FEED in-house; and Mid-Jurassic production with gas cycling in addi-
in 2016, it completed a total of 26 in-house FEEDs, tion to Phase-1 production. It also includes the
which constituted a significant cost savings to the installation of new wellhead platforms along
corporation. In addition, it conducted a proper with associated umbilicals, flowlines and risers as
assessment of the Project Initiation Notes (PINs) well as the reuse of upgraded existing facilities.
to ensure that those projects oriented towards
QP’s core business would get the required priority • Infrastructure for the Ras Laffan Port Expansion
and attention. In support of QP’s Corporate Strate- Project Phase 2 – Completed in December 2016,
gy to develop a highly capable and motivated this project covered the engineering, procure-
workforce, the directorate also launched various ment, installation and commissioning (EPIC) for
initiatives, such as the implementation of a Tech- berths and port infrastructure. It involved
nical Authority Framework and a competency constructing facilities and the required utilities to
development program for senior engineers. provide related services for the export of large
volumes of liquid hydrocarbon cargoes. This
Major Projects project accommodates the marine exports of
• Design, Installation and Hooking Up of New enhanced North Field gas reserves in accordance
Khuff Gas Wells and Arab D Gas Cap Recycling with the updated master plan for Ras Laffan
Wells to Respective Production/Injection Facility Industrial City.
in Dukhan -- The in-house FEED for part 1 of this • EPIC for Miscellaneous Work at Fire Stations and
project was executed on a high priority, fast-track Port Medical Centre in Ras Laffan – This project,
basis in December 2016 in order to complete the which was completed in June 2016, aimed to
installation of facilities by the first quarter of 2017. provide the facility for fire pump testing and
The scope involved design and engineering training, including the collection of tested water
services related to hooking up six new Khuff gas in the underground sump for reuse at Fire
wells in Dukhan to their respective Well Head Stations 2 and 3. The scope of the project also
Treatment Plants (WHTPs). The Khuff gas wells covered paving, the installation of card parking
will have to be ready for commissioning in May/- sheds and covered shed at Fire Station 3, and the
June 2017 in order to meet field development construction of an underground water tank at
commitments. Multiple engineering disciplines Fire Station 1.

• Updating and Gathering As-Built Data, Mapping budgeting process, linked to performance man-
of Buried and Above-Ground Utilities for Cables agement.
and Pipelines Networks and Developing
GIS-Based Utility Networks for Halul Island – This In 2016, the directorate developed and launched
project involves the development of Intelligent a new QP Corporate Strategy to reflect the new
Spatial Utility Networks in Geographic Informa- business challenges faced by the corporation.
tion System (GIS) integrated with Engineering The strategy is anchored on the QP vision, which
Information System (EIS) for Halul Island. The is “to become one of the best national oil compa-
network can be visualized and queried through nies in the world, with roots in Qatar and a strong
an interactive and user-friendly, web-based international presence.”
application, which enables easy retrieval of the The strategy consists of six strategic themes,
required engineering information about assets. which focus--among others--on maximizing
The engineering documents associated with value for the State of Qatar, reinforcing the coun-
piping, cable, equipment, or instrument can be try’s LNG and global gas position, and strength-
easily accessed from the EIS through the GIS ening QP’s technical capabilities. The strategy has
interface. The project includes updating the four key enablers covering human capital,
as-built drawings and the creation of new Master business process and corporate governance,
Engineering Records (MERs) for Halul Island. assets portfolio management, and commercial
In addition to the above, the directorate was also and M&A capabilities.
involved in many other projects, including the The Finance & Planning Directorate also
replacement of the halon firefighting system in launched a project in 2016 to upgrade the Corpo-
the QP Refinery, the EPIC for continuous emission rate Enterprise Risk Management (ERM) Frame-
monitoring at the NGL 1 & 3 plants in Mesaieed, work, thus initiating the implementation of a
and the installation of new flowlines hook-up at comprehensive, industry-standard ERM frame-
the Dukhan Field. The directorate was also part of work in QP.
the Ethane Value Project Evaluation, which is
targeting QP’s petrochemical joint ventures. It As part of its efforts to achieve cost efficiency, the
also started the process of taking over all techni- directorate also developed an “Oil Price Decline
cal records from Al-Rayyan Field to ensure safe Mitigation Strategy” in order to respond to differ-
operations and proper documentation of Al-Mor- ent oil price scenarios and to deploy the appro-
jan platform, which is now one of the major priate measures to mitigate its impact on cash
assets of QP. distributions to the State of Qatar. Further to the
roll-out of this strategy in QP, a similar exercise
was performed with joint ventures and subsidiar-
FINANCE & PLANNING ies in coordination with their respective chief
financial officers (CFOs).
The main role of QP’s Finance & Planning Direc-
torate is to direct all finance-related matters as The Finance & Planning Directorate continues to
well as the development of the corporate strate- focus on capital and operating cost efficiency,
gy and a unified annual corporate planning and and it is also continuing the implementation of

the new, post-reorganization Strategic Frame- safe healthcare services to its employees and their
work through the creation of business strategies dependents as well as to contractor staff who
and the execution of enhanced processes for contribute to QP’s growth projects.
business planning and performance manage- In collaboration and coordination with the Corpo-
ment. In addition, it has started a procurement rate HSE & Quality Department, the Healthcare
process to acquire a corporate-wide ERM system Department ensures that QP’s core business is
before the end of 2017 and to start the roll out supported by inputs from occupational health
and implementation of such a system by the end experts to prevent occupational ailments and
of 2017 for completion in early 2018. injuries arising from work-related activities.
The directorate has also embarked on a finance QP’s Healthcare Department is considered one of
transformation journey, and one such transformation the leading national occupational health and
focuses on the automation of segment financial primary healthcare providers in the State of Qatar.
reporting and product unit costing through the It has established a great portfolio in the national
Segment Reporting Project. The broad project health system and works in collaboration with the
scope includes enhancing the current cost center Ministry of Public Health (MoPH) to raise the bar in
layout, introducing profit center accounting, and quality assured and safe healthcare underpinned
automating segment financial reporting and cost by national and international accreditation impe-
allocation under SAP platform. The project is tus.
spread across three phases, namely, diagnostic,
detailed design and implementation. Once In 2016, among the department’s achievements
implemented, the automation will provide timely were its gold-level accreditation by Accreditation
and quality reports to stakeholders. It will also Canada International and accreditation by the
provide additional dimensions for management Qatar Council for Healthcare Practitioners (QCHP)
reporting by analyzing the profit margins, cost, as a National Continuing Professional Develop-
revenue, volumes, performance not only at the ment (CPD) Provider.
segment level but also at the lowest operating
In addition, since 2016, the department has been
unit, i.e. plant or wells.
operating 24/7 in QP’s industrial cities and it has
extended its evening working hours at its Center
for Health & Wellness in Doha. It has also estab-
HEALTHCARE lished a Health Promotion Unit to enhance the
The Healthcare Department, which is part of QP’s health and well-being of QP staff and their fami-
HSE & Business Services Directorate, contributes lies, and it has also formed a Quality, Risk and
to QP’s corporate strategy by ensuring the physi- Compliance Unit to ensure effective risk manage-
cal and mental wellness of its most valuable ment.
assets -- its human capital. Furthermore, the Healthcare Department intro-
The department has grown proportionately duced in 2016 the Online Medical Appointment
along with QP’s overall growth and diversifica- System, Online Medical Report System, and
tion through the provision of quality assured and Online Laboratory Results Request System. It also
launched the offshore medical fitness to work for

all contractors, the online data for offshore QP Industrial City assets, thus enabling planners
patients and the periodical medical program for to manage, optimize, and cost effectively allocate
office workers. lands to requesting entities and industries.
In the area of human development, the department GIS witnessed a significant growth and diversifi-
intakes Qatari trainees for career development at cation within QP in 2016. The GIS user-base regis-
its various health services divisions as part of tered an impressive 10% growth during the year.
efforts to build national workforce capacity. A The decision to induct GIS technology for analy-
perfect example of this is its internship program sis and visualization of field exploration data has
for Pharmacy students of Qatar University. The also catapulted GIS to the forefront as a core
department also closely coordinates with the business enabler.
Learning & Development Department to meet its
annual training objectives for professional The diversification of GIS technology is demonstrated
development and capacity building of its national by the distribution of GIS services among various
and non-national workforce. entities within QP, thus resulting in a higher ROI
through value addition and leverage of existing
Healthcare remains as the core business of the infrastructure. One of the best examples is the
department and thus its duties are discharged in Electronic Permit-To-Work System (ePTW)
accordance with its mandate and its directorate’s Offshore. ePTW is a proven best-practice method
strategic priorities in line with QP’s vision. to maintain safety on dangerous hazardous
worksites whenever maintenance or other work
is being done in offshore operations. GIS is the
ICT AND CYBER & INFORMATION SECURITY key for conflict detection.
Information and Communication Technology

Functioning under QP’s HSE & Business Services
Directorate, the primary role of the Information &
Communication Technology Department is to
deliver enterprise ICT solutions and services in
alignment with QP’s business objectives. In 2016,
the department recorded a large number of
major accomplishments in the following areas:
Petrotechnical Solutions
Geographic Information System (GIS) technology
is an indispensable tool in harnessing hydrocarbon
resources globally and QP is no exception in this
regard. GIS is a widely utilized tool in the corpora-
tion’s onshore and offshore operations, at the QP
Refinery in Mesaieed, and in locating oil & gas
wells. It is also used to map, visualize, and monitor GIS integrated with ePTW system

In addition to GIS, the ICT Department also The department also provided continuous
successfully delivered in 2016 a scalable solution support in 2016 to the International Upstream
for the management of North Field data. The Department for the storing, loading and
solution provides an efficient way of handling management of the voluminous 2D/3D seismic
data, thereby significantly improving data capture data and other exploration and developmentda-
and validation as well as operational optimization ta provided by QP’s partners overseas. The
of critical E&P data delivered by various North valuable data enables certain QP staff and
Field joint venture partners. The solution also officials to review and make important decisions
brought in effectiveness and efficiency in manag- for QP’s further international expansions.
ing historical E&P data for the North Field.
SAP Competency Center
Among the immediate benefits realized are the
replacement of the previous obsolete system with In partnership with the Human Resources
one employing modern data management Department, ICT implemented in 2016 a Recruitment
techniques, efficient and timely data capture and its Management System (RMS) based on the SAP
availability for up-to-date analysis of assets, as well as e-recruitment module (EREC). The new system
the availability of a Web-based front-end for data supports an end-to-end recruitment process,
aggregation and visualization for the following paving the way for one single system to support
domains: geoscience, drilling and completions, the recruitment process – from vacancy/needs
petroleum engineering and production operations. identification to onboarding of the candidates. It
enables potential candidates from outside the
Another petrotechnical solution implemented by organization (external candidates) to apply
the ICT Department was the crucial upgrade of directly against a particular QP vacancy; it shortens
QP’s Eclipse-based Reservoir Simulation Cluster. the selection process timeframe with immediate
This was undertaken for the Operated Offshore status on the candidates; and it features embedded
and Onshore Field Development, Gas Field electronic approvals with workflows and
Development, and Exploration & Non-Operated notifications.
Oil Development departments under QP’s Field
Development & Exploration Directorate. Currently, ICT also automated the transmission of the
up to 672 CPU cores cluster is available for engineers online call-off orders directly to suppliers. The
for their reservoir simulation studies, which help end-to-end automation--from the approval of
them complete various activities including reservoir the request on the QP intranet to the creation of
evaluation, history matching, long-term forecasting the call-off order in SAP and to the direct trans-
and field development planning. mission to supplier--is seamless and does not
require any intermediate human intervention. Its
benefits include a greatly reduced workload for
buyers, the elimination of manual errors and
increased operational efficiency, thus contributing
towards manpower optimization and operational
cost reduction.
The department’s SAP Competency Center also
Reservoir Simulation

implemented the Purchase Card System for approval process in the SDS e-Services Incidents and
over-the-counter and internet purchases. This Service Request Management System.
newly deployed system allows for Mastercard
credit cards to be used as another mode of E-Applications Development
payment for local purchases. The ICT Department ICT launched the go-live of the Environmental
also revamped the Equipment Failure Reporting Clearance Application Tracking System (ECAT) on
(EFR) Process due to the restructuring in Mesaieed. the SAP NetWeaver platform. ECAT is an automat-
The revamp covered the process of equipment ed workflow web-based system to process,
failure reporting, fault analysis, investigation and approve, track and report the Environmental
recommendations. Permit Application (EP-Application) for the Waste
ICT also introduced the Risk-Based Work Selection Management Department in Mesaieed Industrial
(RBWS) Process, which is based on the QP Risk City (MIC). The application implements the
Matrix for identifying an equipment’s return-to-service approval hierarchy for the EP-Applications and
date. This process has been implemented at the follows the defined procedures in its workflow.
QP Refinery and Dukhan Operations, with roll-outs This system also includes notifications sent to
to other areas planned in the near future. The main MIC employees and project proponents regard-
advantage of this is that it provides for a simpli- ing any outstanding requests awaiting their
fied and effective maintenance scheduling. Also in action.
2016, the ICT Department automated the previous The department also completed its e-Apps
manual process for the purchasing as well as the Migration Phase 2 Project. This project consisted
re-sale and export of GTL gasoil and other GTL of redeveloping in SAP NetWeaver technology a
products. It also implemented a new SAP-based total of eight applications that were originally
process for the purchasing and re-sale of gas from developed in the legacy Lotus Domino technolo-
the Barzan Gas Project. gy. Also in 2016, ICT completed the implementa-
Client Services tion of Enterprise Content Management (ECM)
enhancements, which have enriched functional-
The ICT Department introduced a centralized ity with online editing and also enhanced system
procurement process for print cartridges and usability. During the year, the department also
toners. This has resulted in reduced spending on launched the go-live of the ECM Correspondence
computer consumables by monitoring printer Management System in a total of 25 depart-
usage and providing replacements as and when ments, allowing users from one business unit to
necessary, thus avoiding the overstocking of printer share, distribute, review and archive correspon-
consumables. dences.
As part of its client services, the department also The year 2016 also marked the go-live of the
customized a Service Desk System (SDS) for the following:
Human Capital Directorate and for the HSE &
Business Services Directorate. In both cases, - The QP Preferred Vendors List (PVL) System for
a large number of previously manual processes the Projects, Engineering and Procurement
were developed into workflows with a predefined Services Directorate, which is designed to auto-

mate the process of adding/removing and revali- department also published the Information
dating vendor and vendor product into the PVL; Security Awareness Standard, and it then started
preparations for the awareness campaign that
- The Healthcare Department (HCD) Staff Access will be implemented in 2017 to educate QP
and Confidentiality Agreement System, which personnel on the established practices and
automates the submission of declarations on the general behavior related to information security.
QP Healthcare Framework on Medical Ethics and In line with its objective to increase QP’s
Confidentiality; preparedness regarding cyber and information
- The CAD, GIS and Survey Request System security, the department also participated in the
(CGSRS), which is intended to create a workflow annual ictQatar cyber drill focusing on QP’s cyber
application for Industrial Cities staff to raise security readiness.
requests for CAD drawings, land surveys and GIS The Cyber & Information Security Department
maps; and defined the supporting requirements for infor-
- The Visitor Management System (VMS), which mation security risk management in QP by
automates the process for the entry of QP or publishing the following additional documents:
non-QP visitors to all Doha premises managed by the Information Security Risk Management Stan-
the Facilities Management Department. dard, the Information Security Controls Frame-
work Standard, and the Corporate Guidelines for
Controls Effectiveness.
Cyber & Information Security In line with its mandate, the department is
executing a comprehensive information security
Formed in 2015 under QP’s HSE & Business
risk management focusing on QP’s core business.
Services Directorate, the Cyber & Information
It has been conducting risk assessments on the
Security Department is tasked with establishing,
Industrial Control System (ICS) of certain sites
managing and maintaining QP’s Corporate
and facilities, and it has also executed risk assess-
Information Security Framework to address risks
ments on the services of the Information and
and to ensure compliance with the information
Communication Technology Department (ICT).
security laws of the State of Qatar. The depart-
The risk assessment activity was started in April
ment currently focuses in four areas of cyber and
2016, with the first phase planned to be conclud-
information security within QP: governance, com-
ed in December 2017, and its main objective is to
pliance management, risk management, and
define the controls that need to be implemented
assurance.
to reduce QP’s exposure to risks and to improve
In 2016, the department developed the basis for the existing security measures.
the governance of cyber and information security
The Cyber & Information Security Department
in QP with the publication of documents, such as
has been developing a modus operandi to
the Corporate Information Security Policy and its
address the business requirements in a compre-
framework, the Information Classification Stan-
hensive manner, involving representatives of all
dard as well as its guidelines and template, and
directorates and corporate departments, which
the Identity Access Management Standard. The
are consulted during the development of all stan-

dards and other governance documents. Since its strictly adhered to. It takes all the necessary mea-
establishment, the department has also been sures to ensure the safety and security of all
engaging with external entities in the oil & gas personnel, plant, equipment and materials during
sector and with state regulators to identify the the execution of various services to comply with
practices and experiences to leverage from and to QP’s HSSE policies and procedures as well as
maintain information exchange points of contact. hygiene regulations.
In line with this, a total of 24 evacuation exercises
were carried out in 2016 to ensure the prepared-
FACILITIES MANAGEMENT ness of all building occupants and the efficiency
The Facilities Management Department, which is of existing response plans. Twelve phased evacua-
under QP’s HSE & Business Services Directorate, is tion drills were also conducted at the new QP
mandated to manage the delivery of various Headquarters in West Bay. The department also
services, including housing, office accommoda- delivered a total of 141 safety briefings during
tion, commercial security in Doha, catering, trans- events held in QP facilities to fully ensure the
portation and building maintenance, in all areas well-being of the participants during those
under the control of QP. events. With the cooperation of all employees, the
Facilities Management Department had recorded
In 2016, the department streamlined its various zero lost-time injury (LTI) in 2016 in all facilities
services to help achieve QP’s cost optimization under its mandate.
targets by consolidating the scope of service for
all QP locations. The department also managed to The department also ensures that all QP facilities
gain tremendous savings in 2016 by adopting a are friendly to persons with special needs by
new strategy in the tender for office waiters, participating in the “Accessible Qatar” initiative
cleaning, laundry, manpower & catering services. and by conducting inspections of facilities for
The strategy involved implementing an open easy access to them with the provision of ramps
tender instead of going for a single source. Under and holding bars. The department has also intro-
this strategy, the department developed a consol- duced a new procedure focusing on the emergen-
idated scope of services for all QP locations with cy evacuation of persons with special needs from
split bill of quantities. The new catering contract QP facilities.
included the provision and replenishment of
crockery, cutlery and other necessary kitchen
equipment by the contractor, and it also specified LEGAL
that the provision of manpower and foodstuff
servicing in all QP clubs would be provided by the Corporate Governance and
contractor at no cost to QP. Compliance Framework
As part of its mandate, Facilities Management Corporate governance is one of the key enablers
contributes to a safe and environmentally supporting QP on the path to achieve its vision “to
conscious working environment by ensuring that become one of the best national oil companies in
QP’s environmental and safety policies are always the world, with roots in Qatar and a strong inter-
national presence.” In 2016, QP ’s Legal Depart-

ment developed and commenced implementa- developees. The plan sets out a comprehensive
tion of the QP Corporate Governance and Compli- development program that provides a roadmap
ance Framework, which supports the realization for developees to develop their skills and compe-
of QP’s Corporate Strategy through the transfor- tencies in order to be confirmed as a QP lawyer,
mation of governance in QP. It also covers gover- and gives guidance to the Legal Department's
nance and oversight of QP’s joint ventures and coaches and supervising lawyers on a detailed,
subsidiaries, the procedural framework underly- competency-by-competency basis, thus provid-
ing Corporate Strategy themes as well as the iden- ing a clear view of the developees’ weaker areas
tification, mitigation and management of the that need to be addressed and improved. A full
compliance and regulatory risks affecting QP. The set of legal team competencies is provided to the
framework establishes governance for effective developees, together with the level that they are
implementation, oversight, monitoring and expected to achieve at each grade. The year 2016
continuous improvement of the ethics and com- gave the department a full year to test the devel-
pliance culture in QP, which will assure integrity of opment plan and most of its developees
process, compliance with QP policy and proce- progressed smoothly through the program to
dural framework as well as management of the advance their careers.
international regulatory requirements in line with
international and industry practices. Legal Panel
Joint Venture Governance In 2015, QP’s Legal Department empaneled 11

law firms under framework agreements that have
As part of the initiative to further improve and enabled it to easily call off for services on
strengthen corporate governance in QP, the Legal pre-agreed terms and conditions (including
Department, in collaboration with Human Capital hourly rates). The panel also provides the depart-
Directorate, also developed and commenced in ment with the opportunity to deepen its relation-
2016 the roll out of the QP Framework for ships with the selected firms so that services can
Venture’s Effective Decision Making. The frame- be procured and delivered efficiently and effec-
work defines the internal processes applicable to tively. The Legal Department’s use of the panel
venture-related decision making and QP's was so successful that other departments within
approach to shareholder engagement, and most QP are using its model framework agreement for
importantly, it creates a framework to support similar professional service providers. The panel
QP-nominated directors in their decision-making will be reviewed in the fall of 2017 and be
process. It plays a critical role in ensuring that refreshed as needed for ongoing efficiency.
corporate and business strategies, as well as asset
strategy, are effectively implemented throughout QP Precedents
all QP assets in order to deliver efficiencies and During 2016, the Legal Department focused on
achieve QP’s vision. building a bank of precedent documents in order
Competency Development Plan to improve the quality and increase the efficiency
of its legal services. By the end of the year, over 30
In January 2016, the Legal Department rolled precedent documents had been prepared. These
out its Competency Development Plan for Qatari have had the greatest impact in (a) the Human

Resources Department, where secondment training works, public relations and exhibitions,
terms have been standardized and thus new manpower and information technology
arrangements could now be processed in just a (software and maintenance).
few days, (b) throughout QP, where engage-
ments of professional service advisers--outside of Further enhancements have been made to the
the General Conditions of Contract (GCOC) GCOC for EPIC, FEED services and major construc-
process--have been standardized, making it tion, as well as the development of the new
possible to work quickly and efficiently with GCOC for Well Services with the objective to
clients, and (c) the Industrial Cities Directorate, bring QP's standard legal and contractual
where lease and service terms across all three position in line with the latest international
industrial cities were substantially improved and standards and practices while achieving
standardized. Other standardized documents balanced risks/reward contractual structure and
include confidentiality agreements, shareholder meeting the risk profile that is acceptable to QP.
loan agreements, memoranda of understanding, The development and enhancements of these
short-form asset transfer and share purchase new GCOCs will enable QP to realize additional
agreements, and event sponsorship agreements. efficiencies through structured and transparent
Legal Department Business Plan engagements with contractors and suppliers and
will lead to delivering additional value to the
In 2016, the department prepared its own corporation.
five-year business plan, which articulates its
vision and values and enables it to focus on the
important initiatives and behaviors necessary to INTERNAL AUDIT
fulfill its mandate. The business plan, together
with the lawyer competency model (developed The role of QP’s Internal Audit Department is “to
for its developees), also serves to support its provide independent and objective assurance to
hiring and retention of key talents to meet its the Board Audit Committee on the effectiveness
requirements. of QP's governance, risk management and
control practices through a structured program
General Conditions of Contracts of risk-based internal audits.”
The Legal Department, in cooperation with The practice of internal auditing in QP is undertaken
Supply Chain and relevant sponsoring depart- by internal audit/investigation professionals who
ments, has undertaken a review of the existing have the qualifications and experience and have
set of General Conditions of Contracts (GCOC) been certified by a professional organization
and the subsequent development of new such as the Institute of Internal Auditors (IIA),
models. These include the development and/or Association of Certified Fraud Examiners (ACFE),
enhancement of, among others, the GCOC for and Information Systems Audit and Control Asso-
Engineering Procurement Installation and ciation (ISACA) and by “non-registered” internal
Construction (EPIC), Front End Engineering and auditors who have developed their skills through
Design (FEED) services, helicopter services, experience.
marine services, major construction, shutdown,

QP’s Internal Audit Department currently has a policies for its administration
combination of employees who are members of - Zero tolerance to corruption policy
the IIA, ACFE, and ISACA as well as staff who are - Whistleblowing policy
not members of a professional organization. Each - Ethics policy
professional organization has published a stan-
dard or set of rules on what its members may or QP is committed to acting professionally,
may not do. fairly and with integrity at all times and in all its
business dealings and relationships wherever it
The Internal Audit Department, as far as practical operates, implementing and enforcing effective
and within the requirements of QP and the State systems to counter fraud, corruption, bribery,
of Qatar, uses a combination of the IIA, ISACA and unethical behavior, or reporting non-compliance
ACFE standards, the International Professional with Qatar’s laws and regulations, and QP’s
Practices Framework (IPPF) and the Committee of regulations, policies and procedures. QP’s policy
the Sponsoring Organizations of the Treadway is to investigate all allegations received through
Commission (COSO) framework as basis for its the fraud hotline as well as the allegations that
work. are reported directly to management and provided
The department continues to “self-assess” against to the department.
the relevant standards and makes improvements The Internal Audit Department conducted
to bring it closer to international standards where various investigations into the allegations
gaps are noted. The department also continues to received in 2016 and issued a number of reports
use a process-based audit methodology, follow- to the President & CEO. The reports identified the
ing the COSO framework. non-compliances or violations committed by QP
The Internal Audit Department has been working employees and/or contractors, and these includ-
with a number of other QP departments to ed recommendations for corrective actions,
update and implement, among others, the follow- including referring employees to an investigation
ing documents: Code of Ethics, Conflict of Interest committee or suspension/disqualification of
Declaration, and Regulations for Procurement and contractors in line with QP’s regulations, policies
Disposals. and procedures.
One of the initiatives being proposed involves QP management took corrective action on all the
implementing an Integrated Business Ethics & cases that were investigated and on which a
Integrity Management Framework (BE&IMF). report was issued, and where applicable, institut-
High-level documents supporting the BE&IMF ed appropriate action plans to address outstand-
have been prepared and submitted to senior ing issues. There is a follow-up process to track all
management. These documents, once approved, outstanding issues regularly, and follow-up
will support the implementation of revised or new reports are issued to the President & CEO and to
codes and polices, including but not limited to: the QP Board Audit Committee on a quarterly
basis.
- Code of ethical business conduct
- Conflict of interest regulations and the related

2016
HIGHLIGHTS

February
7 February – QP reached an agreement with Chevron Morocco Exploration Ltd., a subsidiary
of Chevron Corporation, to acquire a 30% participating interest from Chevron’s 75% share in
three deep-water offshore leases in the Kingdom of Morocco.
9 February – QP highlighted the prime importance of an active and healthy lifestyle, as it
organized a wide range of activities for QP employees and their families as part of National
Sport Day 2016.
13 February – QP awarded a contract for the construction of a 24-inch pipeline and associat-
ed facilities to supply jet fuel from Ras Laffan Industrial City (RLIC) to Hamad International
Airport (HIA), a project to ensure that the long-term demand for jet fuel at the airport is met
beyond the year 2030.
17 February – QP held its annual Continuous Service Awards (CSA) Ceremony, during which
the President & CEO Mr. Saad Sherida Al-Kaabi honored a total of 365 employees who had
reached career milestones of 20, 25, 30, 35 and 40 years of service with the corporation.
March
2 March – Under the patronage of the President & CEO Mr. Saad Sherida Al-Kaabi, QP gave
recognition to a total of 831 long-serving employees who had been part of the corporation
for the past 10 and 15 years.
24 March – QP delivered the 500th liquefied natural gas (LNG) cargo from QP affiliate Qatar
Liquefied Gas Company (2) to the South Hook LNG Terminal at Milford Haven in the United
Kingdom. The landmark delivery was made on board the Q-Flex LNG vessel “Al-Hamla.”

April
12 April – QP, along with its joint venture companies RasGas Company Limited and Qatargas
Operating Company Limited, took part in the 18th International Conference & Exhibition on
Liquefied Natural Gas (LNG 18) in Perth, Australia.
27 April – As part of its efforts to effectively to develop Qatari leaders, to manage corporate
governance, and to sustain growth and development, QP has launched the “Qatar Petro-
leum High Performance Boards Program” in association with the Global Board Center of IMD
Business School in Switzerland.
28 April – QP’s Offshore Operations took part in the global observance of the “World Day for
Safety and Health at Work” by organizing activities related to occupational health and safety
in Halul Island as well as in Production Station 2, PS-3 and PS-4.

May
2 May – QP joined a large gathering of major oil & gas companies from all over the world at
the Offshore Technology Conference (OTC 2016), which was held in Houston, Texas, USA.
9 May – QP marked a major milestone with the loading of the 10,000th LNG cargo from Ras
Laffan Port. The LNG cargo was loaded on board the Q-Max LNG carrier “Mozah,” which was
bound for the South Hook LNG Terminal in the UK.
16 May – Mr. Saad Sherida Al-Kaabi, President & CEO of QP, attended the 16th Annual
Qatarization Review Meeting of the energy and industry sector, during which many compa-
nies were honored for their outstanding performance in the field of Qatarization.

June
25 June – As part of QP’s efforts to deliver superior integrated products and services across
the entire oil & gas value chain, QP announced the integration of Qatar International Petro-
leum Marketing Company Ltd. (Tasweeq ) into the QP family.
27 June – In the presence of His Excellency Sheikh Abdullah Bin Nasser Al Thani, the Prime
Minister and Minister of Interior of the State of Qatar, QP announced the establishment of
“North Oil Company” for the future development and operation of Al-Shaheen oil field and
the selection of Total as its partner starting July 2017.
28 June – In line with its strategy to focus on its core business in the oil and gas industry, QP
announced that it will hand over in January 2017 the management and operation of some
areas within its concession in Mesaieed Industrial City to the Economic Zones Company
Qatar (Manateq).

October
1 October – Mr. Saad Sherida Al-Kaabi, President & CEO of QP and Chairman of the Qatargas
Board of Directors, signed an agreement between Qatargas and Pakistan’s Global Energy
Infrastructure Limited (GEIL) for a 20-year LNG Sale and Purchase Agreement (SPA) during a
ceremony hosted by H.E. Muhammad Nawaz Sharif, Prime Minister of Pakistan.
5 October – In the presence of H.E. Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani, the
Prime Minister and Minister of the Interior of the State of Qatar, and H.E. Dr. Sultan Bin
Ahmed Al Jaber, Minister of State in the United Arab Emirates and CEO of Abu Dhabi Nation-
al Oil Company (ADNOC), QP and Dolphin Energy Limited entered into a new long- term gas
sale and purchase agreement (SPA), under which QP will deliver additional quantities of gas
to Dolphin for export to the UAE through an existing subsea pipeline.
11 October – Mr. Saad Sherida Al-Kaabi, President & CEO of QP, held meetings in Tokyo with
top executives of major Japanese companies and discussed ways to boost existing coopera-
tion with customers and business partners, particularly in the LNG trade.
13 October – QP conducted a clean-up activity at Ras Laffan Port in line with the celebration
of the annual Ports Clean-Up Day, which was first held in 2012 and organized by the Region-
al Clean Sea Organization (RECSO).
31 October – QP announced the establishment of Ocean LNG Limited for the purpose of
marketing its future international LNG supply portfolio sourced outside Qatar, a move
driven by QP’s aspirations to remain as a global LNG leader and to invest in LNG projects in
other countries.

November
7 November – QP was one of the major exhibitors at the Abu Dhabi International Petroleum
Exhibition & Conference (ADIPEC 2016). QP President & CEO Mr. Saad Sherida Al-Kaabi took
part in a series of high-level meetings and sessions held as part of the event.
12 November – Mr. Saad Sherida Al-Kaabi, President & CEO of QP, hosted a signing ceremony
for a long-term LNG sale and purchase agreement (SPA) between QP’s affiliate, Ocean LNG
Limited, and the Brazil-based Centrais Elétricas de Sergipe S.A. (CELSE), a joint venture
between GG Power and Ebrasil.

December
11 December – QP formally announced the integration of the activities of RasGas and Qatar-
gas operating companies under a single entity, named Qatargas, which would operate all
the ventures being operated by both entities.
13 December – QP announced the reduction of Qatar’s oil production levels effective 1

January 2017 in line with the State of Qatar’s commitment to the agreed production levels
by members of the Organization of the Petroleum Exporting Countries (OPEC) during its
ministerial meeting in November 2016.
22 December – Mr. Saad Sherida Al-Kaabi, President and CEO of QP, gave recognition to a
total of 175 Qatari nationals who had successfully completed their academic studies and
training programs under QP’s scholarship program.
24 December – Qatargas announced the successful commercial start-up of Laffan Refinery
2, marking a major milestone in the expansion of refining capacity in the State of Qatar to
292,000 barrels per day of condensate from the North Field.

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His Highness

Sheikh Tamim Bin Hamad Al-Thani

Message from the Chairman 10

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Dr. Mohammed bin Saleh Al-Sada

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Saad Sherida Al-Kaabi

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H.E. Dr. Ibrahim Hamad Rashid Nasser Khalil

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Ahmad Saif Al-Sulaiti Executive VP, Operations

Khalid Said Al-Rumaihi Executive VP, Field Development & Exploration

Jassim Mohammed Al-Marzouqi Executive VP, Commercial & Business Development

Abdul-Rahman Ahmad Al-Shaibi Executive VP, Finance & Planning

Abdulaziz Mohammed Al-Mannai Executive VP, Human Capital

Mohammed Nasser Al-Hajri Executive VP, Downstream Development

Abdulla Ahmad Al-Hussaini Executive VP, Marketing

Abdulaziz Jassim Al-Muftah VP, Industrial Cities

Nabeel Mohammed Al-Buenain VP, HSE & Business Services

Mohammed Abdul-Qader Al-Khori Director General, Industrial Security

Ali Nasser Telfat Corporate Manager, CEO Office

Mohamed Essa Al-Mannai General Counsel and Board Secretary

Adel Abdulla Al-Baker Corporate Manager, Internal Audit

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This meant a continued and determined effort to

Maximizing contribution necessitates that we

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During 2016, a major initiative was undertaken to

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Solar Power QP owns 5% of the project, which is one of the

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Drilling of the ﬁrst well in Dukhan 1939/1940

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Exploration and Drilling Activities

Area Operator Summary

Unconventional QP Preparation work to drill the JAB-2 well is ongoing and is

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