2008 Report

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‫كلمة �سعادة رئي�س اللجنة العليا إلدارة بابكو‬
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2008 ‫�هم �إجنازات عام‬
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‫�داء املبيعات‬
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‫ تطوير العمل‬1 0
‫�إنتاج النفط والغاز‬13
‫ عمليات التكرير‬1 5
‫ التخزين والتوزيع‬1 7
‫ التط ّور التكنولوجي‬1 7
‫ تطوير أالفراد‬19
‫ حماية البيئة‬2 0
‫ ال�صحة وال�سالمة‬2 1
‫ دعم املجتمع‬2 3
‫أ‬
‫�هداف طويلة املدى‬
23
Chairman’s foreword
Highlights of 2008
Sales performance
Business development
Oil and gas production
Refining operations
Storage and distribution
Technological advances
Personal development
Protecting the environment
Health and safety
Community support
Long-term aims
Reg. No. IBAR 091
IBAR 091 ‫رقم الت�سجيل‬
Serving the world to serve Bahrain
His Highness Shaikh Khalifa
bin Salman Al-Khalifa
His Majesty King Hamad
bin Isa Al-Khalifa
His Highness Shaikh Salman
bin Hamad Al-khalifa
The Prime Minister of the
Kingdom of Bahrain
King of the Kingdom of Bahrain
The Crown Prince of the
Kingdom of Bahrain and
Deputy Supreme Commander
Serving the world to serve Bahrain
Chairman’s Foreword
His Highness
Shaikh Khalifa bin Salman Al-Khalifa
The Prime Minister
Your Highness,
I am deeply honoured to present to you, and to share with the people of Bahrain, this record of the
achievements of The Bahrain Petroleum Company B.S.C. (Closed) for the year 2008.
Following the historic inauguration by Your Highness of the Low Sulphur Diesel Production complex in
December 2007, a significant milestone was reached on 28 May 2008, when Bapco exported its first
cargo of low-sulphur diesel. Since then, work has commenced on a segregated pipeline system with
dedicated storage tanks to allow the first shipments of ultra-low sulphur diesel to be exported in 2009.
Bapco is now at the forefront of those GCC companies capable of exporting large quantities of
ultra-low sulphur diesel.
As part of Bapco’s strategic investment programme, a joint venture agreement was signed on 16 June
2008, by Oil & Gas Holding Company, Bapco and Neste Oil of Finland for a US$430m lube base oil
manufacturing plant. This will further expand Bapco’s global sales.
It is appropriate, therefore, that the theme of this year’s Review should reflect Bapco’s growing strength
as a supplier to the international oil markets.
Other significant developments during the year were the agreements signed with international oil
companies for the exploration and development of all four Bahrain offshore Blocks.
To promote future production from the Bahrain Field, companies were given approval to increase the
depth of gas drilling operations, while work started on the first of eight new wells to be drilled under the
2008-2011 Khuff Development Programme.
The year also saw construction of the US$150 million Refinery Gas Desulphurisation Plant, which,
when it comes on-stream in 2009, will dramatically improve the environmental impact of our refining
operations. Our status as a responsible company was further enhanced when we gained certification
following compliance with the environmental management standard ISO14001:2004.
At the refinery, a new record for the highest crude run in a single month was set in May 2008, when the
crude run averaged 270.3 MBPD. This was followed by a record low mass loss of 0.57% in September,
reflecting the efforts of engineering, maintenance and operating staff.
Once again, Bapco’s safety record for 2008 was outstanding, and meant the Company became eligible
for entry into the prestigious Sword of Honour Award given by the British Safety Council to the top 40
safest companies in the world. I am proud of the way our employees, and those of our contractors, have
worked to make Bapco such a safe place.
Significant progress was made on Bapco’s e-procurement programme, with a successful pilot project
leading to preparation for full-scale implementation. This is in direct support of Bahrain’s e-Government
initiative. The Company also made progress along the road to public tendering, in coordination with the
Government Tender Board, despite the complex nature of many of its contracts. Both these will assist
the Company’s efforts to achieve greater transparency.
Through a combination of focused management, aggressive marketing, sustained quality and employee
commitment, I believe that, with your guidance, we can face the difficult future with confidence.
On behalf of the Bapco Board of Directors, management and employees, I offer my wholehearted
gratitude to His Majesty the King, to Your Highness, and to His Highness the Crown Prince, for the
support given to all of us in Bapco as we seek to serve the Government of Bahrain.
Annual Review 2008
Dr. Abdul-Hussain bin Ali Mirza
Minister of Oil and Gas Affairs
Chairman of the National Oil and Gas Authority (NOGA)
Chairman of the Board Committee
The Bahrain Petroleum Company B.S.C. (Closed)
2-3
Serving the world to serve Bahrain
Highlights of 2008
•
Bahrain Phased Field Development Project is tendered by NOGA and bid evaluations are conducted on three international oil companies (IOCs).
•
A joint venture agreement is signed for a US$430m lube base oil manufacturing plant in Bahrain.
•
The Company achieves its highest refining margin.
•
EPSA agreements are concluded between NOGA and IOCs for the exploration and development of all four offshore oil blocks.
•
Drilling commences in October as part of a US$200m development programme to increase Khuff Gas production.
•
Construction of the new US$150m Refinery Gas Desulphurisation Plant is completed.
•
First export cargo of low-sulphur diesel leaves Bahrain on 28 May.
•
Bapco gains certification for environmental management standard ISO 14001:2004 following a two-stage audit by Bureau Veritas.
•
A new record for the highest monthly crude run is set in May with an average of 270.3 MBPD (thousand barrels per day*).
•
A Five Star Safety Award by the British Safety Council makes the Company eligible for a prestigious Sword of Honour international award.
•
Agreement in principle is reached to replace the 60+ year old pipeline between Saudi Aramco and the Bahrain Refinery.
•
Bapco laboratory wins three international awards, including that of Top Performing Laboratory, in competition with 50 other centres.
•
618 is the final total of Bahrainis graduating from the Skills for the Workplace initiative organised by Bapco in association with the Ministry of Labour.
•
Employees work 4.9 million hours without a single lost-time accident.
*A barrel is equivalent to 159 litres.
Annual Review 2008
4-5
From its marine terminal at Sitra, Bapco exports refined products to more
than 40 countries worldwide.
Serving the world to serve Bahrain
Serving the world
to serve Bahrain
The theme of the 2008 Annual Review is Serving the world to serve Bahrain. The theme has been
chosen to reflect Bapco's growing stature as a reliable provider of quality petroleum products to the
international marketplace. During the past year, the Company exported to more than 40 countries
around the world.
For many years now, crude and 95 percent of refined products have been destined for overseas markets.
Exports include liquefied petroleum gas (LPG), naphtha, gasoline, kerosene, aviation and jet fuel, diesel,
fuel oil, asphalt, and sulphur.
Today, Bapco is at the forefront of process technology with the coming on-stream of the Low Sulphur
Diesel Production (LSDP) complex. This enables the Company to enter new international markets, with
the most environmentally-friendly products available. These products have a higher value than in the
past, and will help the Company maintain its crucial role as the key provider of wealth to the Kingdom.
Strong sales bolster
national economy
A strong demand for refined product throughout the first half of the year enabled the Company to
export 81.3 million barrels in 2008 compared with 86.5 million barrels in 2007. The decrease in
international sales arose from planned process unit shutdowns and increased domestic demand.
Because of the strong international demand for almost all refined products throughout most of 2008,
the Company achieved its highest refining margin. In particular, margins for diesel and kerosene were
strong throughout the year, thanks to the first full year of operation of the LSDP which increased yields
of middle distillates.
The end of the year did experience a softening of the naphtha and gasoline markets due to the
downturn in petrochemicals in the Asian region, and a general fall in product demand as a result of the
global financial and economic crises.
Nevertheless, Bapco was able to maximise the benefit from high product prices through careful
planning and refinery optimisation, which resulted in high average crude runs, particularly during the
early part of the year. The situation was also aided by planned major shutdowns falling towards the end
of the year.
The Lyra Pioneer at Sitra Wharf taking on Bapco’s
first shipment of low-sulphur diesel on 28 May 2008.
Annual Review 2008
JAPAN
6-7
Bapco has had a long-standing relationship with Japan, who are one of our
main customers for naphtha. Naphtha is used primarily for the manufacture
of petrochemicals.
Photo: The wax-coated paper umbrella plays an important role in
traditional culture, including tea ceremony and dance drama.
Serving the world to serve Bahrain
The jewel in Bapco's crown is its capability to produce up to 100,000 BPD (barrels per day) of
ultra-low sulphur diesel (ULSD), which has a sulphur content of less than 10 parts per million (ppm).
This meets the most stringent requirements almost anywhere in the world. No other refiner in the region
is able to produce ULSD on such a large scale.
Since the commissioning of the new Low Sulphur Diesel Production (LSDP) facilities in June 2007,
Bapco has been gradually phasing in lower sulphur diesel cargoes. The first phase saw 24 cargoes of
500 ppm low-sulphur diesel shipped out. The second phase was reached when the Company exported
the first cargo of 50 ppm low-sulphur diesel aboard the ship Lyra Pioneer in May 2008. Preparations for
the final phase - a segregated pipeline system with dedicated storage tanks for the export of ultra-low
10ppm sulphur diesel - were largely completed by the end of the year.
Crude prices saw a spectacular rise throughout the first half of the year, peaking in July at US$147.
The rapid unfolding of the financial crisis, followed closely by the economic crisis, saw crude oil prices
spiralling downwards to finally rest 70% below the July peak despite attempts by OPEC to bolster prices
during the latter half of the year. The global economy was facing a crisis of confidence and credit.
Sales of crude oil from the Abu Safah offshore field amounted to 54.5 million barrels, a similar figure
to 2007, very different was the average sales price realised, which was approximately US$91 per barrel
compared with the figure of US$66 achieved during 2007. The Kingdom of Bahrain holds an equity
share of 150,000 barrels per day in the Abu Safah field production.
The Low Sulphur Diesel Production
Complex puts Bapco at the forefront
of refining technology.
Refined Product Sales
U.A.E.
19.3%
India
32.9%
Qatar
2.4%
2.6%
Netherlands
3.0%
Mozambique
Japan
Saudi�Arabia
4.4%
Oman
4.9%
14.0%
5.4%
11.0%
Indonesia
Rest�of�the�world
Annual Review 2008
AUSTRALIA
8-9
Transportation costs mean that distance from the market place affects the
competitiveness of Bapco products, and also impact on profit margins.
Nevertheless, Bapco has been successful in shipping crude to many
Far Eastern destinations and Australia.
Photo: Early morning in the rainforest of the Yarra Ranges in Victoria.
Serving the world to serve Bahrain
Business development
given sharper focus
To provide a sharper focus on its strategy of Growth
and Diversification the Company has created a new
Strategy & Business Development Division headed by
a General Manager to explore and evaluate business
opportunities, in and outside Bahrain.
Significant progress was made in exploration and
development of oil and gas resources, and three
investment projects forming part of the current
strategic investment programme also moved forward.
A brief overview of these developments follows.
The Weatherford Drilling Rig is the largest and most modern
ever to be contracted by Bapco for its strategic Bahrain
Oilfield development programme.
1. Exploration and Development
The Bahrain Field Phased Development Project (BFPDP) is the largest and most important project of its
type undertaken by Bapco. The project will increase the daily production of oil and gas, and generate
additional oil and gas reserves, thereby increasing revenue to the Kingdom of Bahrain.
In conjunction with NOGA, an Incremental Development Production Sharing Agreement was
tendered. Following the second phase bidding round, bids from three companies were opened by
the Tender Board and preliminary negotiations commenced with the preferred bidder, Occidental
Petroleum (OXY).
The year 2008 also marked the initiation of a new exploration project to explore for gas in the deep
Paleozoic geologic layers of the Bahrain Field. This Bahrain Deep Gas initative was launched by NOGA
on 27 October, supported by three road shows which attracted strong interest from international oil
companies.
2. Offshore Exploration
The Offshore Exploration Bid Round that was initiated in 2007 by NOGA was concluded with the
award of Block 2 to PTTEP of Thailand and Blocks 3 and 4 to Occidental Petroleum. In 2008 the
remaining Block 1 located to the north of Bahrain was also awarded to OXY.
The exploration programme on Blocks 2, 3 and 4 has already been started with geochemical surveys on
Blocks 3 and 4 completed in December and a start made on seismic processing and interpretation of
2D and 3D data.
3. Gas Import Venture
Bahrain has enough gas to guarantee current commitments. However, any further industrial expansion
will depend on new finds, or require a long-term supply contract with one of its neighbours.
NOGA signed a framework agreement with Iran to develop the gas resources of Blocks 15 and 16
of South Pars Field and Bahrain is to seek partnership with interested and capable international oil
companies to fast-track this initiative.
Annual Review 2008
10 - 11
4. Lube Base Oil Plant
A joint venture agreement was signed in June 2008 by Nogaholding, Bapco and Neste Oil of Finland
for a lube base oil manufacturing plant.
The EPC (Engineering, Procurement and Construction) contract for the US$314m project was signed
with the Korean contracting company Samsung Engineering in August 2008.
A Bapco project team left for South Korea in September to work on the Detailed Design Engineering
and Procurement phase of the project, which is scheduled to go on-stream late 2011.
Neste Oil - which has been in the high-quality lube oil business for a long while with a commanding
market share - provides a perfect partner creating many synergistic benefits. Bapco will operate the
plant while Neste Oil will market the lube oils, which will provide a significant upgrade in quality and
value to Bapco's product slate.
5. A-B Pipeline
Agreement was reached to replace the 60+ year old A-B crude oil pipeline from Saudi Aramco to the
Bapco Refinery with a new 30-inch diameter pipeline, running 115 kilometres along a new route to
avoid residential areas.
To meet the forecasted increase in crude oil demand, the pipeline capacity will be increased from
the current 235,000 BPD to 350,000 BPD of Arabian Light Crude. Cost of the project is estimated at
US$350million with a late 2011 completion date.
6. Independent Terminal - Bahrain
Bapco continued to participate in the feasibility study to build and operate an independent petroleum
storage terminal and marine facility at Sitra in Bahrain in partnership with IPG of Kuwait and APICORP.
Audex Pte Ltd of Singapore is conducting the Front End Engineering Design (FEED) study for the
terminal.
GEO, an exhibition and conference, is used to promote oil and gas
exploration and development opportunities in Bahrain.
The Company’s rigging group have taken their
first step towards full membership of the Lifting
Equipment Engineers Association, the world’s
foremost authority in this field.
Serving the world to serve Bahrain
Oil and
gas production
Management of the Oil Field
Bapco achieved an average daily oil production of 32,861 barrels during 2008.
Compliance with the policy of eliminating all gas flaring and venting in the field
was a main factor contributing to the overall decline of field production. But an
active drilling and work-over programme, together with increased gas injection
rates, combined with intensive preventative maintenance schedules, helped reduce
this decline to around 4%.
The Development Wells Drilling Programme encompasses 48 new oil wells. By the
end of the year, 40 vertical wells were successfully drilled and 22 new well sites
became available for drilling during 2009. In addition, drilling for the Special Wells
Programme, consisting of 21 unconventional wells, continued unabated during
the year, with new records set of new wells being put into production within three
weeks of the rig moving out.
Among the measures taken to enhance production was Coiled Tubing Stimulation.
Because conventional stimulation techniques have not been effective in horizontal
and re-entry wells, seven wells were stimulated with coiled tubing in 2008. This
measure has significantly increased oil and non-associated gas production.
A second measure, acid fracturing treatment, was performed on 13 wells tapping
into the tight reservoirs of the Bahrain Field.
Significant initiatives aimed at arresting the oil production decline in future years
include:
•
A study to optimally design the Arab Zone re-entry wells.
•
Drilling horizontal wells to enhance oil production from the Kharaib reservoir.
•
Drilling two test wells to evaluate potential of the currently unproductive zones below the Arab reservoirs.
Management of the Khuff Gas Field
Daily gas production averaged 1,192 MMSCFD (million standard cubic feet per
day) in 2008, an increase of 87 million over the previous year’s average, ensuring
that the demands of all sectors in Bahrain were met.
During the year the Company signed an agreement to supply an extra 55 MMSCFD
to GIIC iron plant, bringing the total supply to that company to 120 MMSCFD.
Commissioning of new facilities such as Khuff gas dehydration units (GDUs),
distribution lines, and valve stations enhanced the reliability of the natural gas
system. In addition, the engineering design to lay a new gas pipeline to Al-Dur
Power Plant was completed.
Increased Khuff gas production capacity is of national importance and good
progress was made on the US$200 million investment plan to increase gas
production capacity by 500 million cubic feet per day. This involves drilling eight
new gas wells and constructing seven new gas dehydrators. The first well was
completed in December.
Annual Review 2008
KENYA
12 - 13
73% of the gasoline exported by Bapco goes to Africa, with Kenya taking
the lion’s share. Some of this product helps sustain the transport system
which links medical centres and schools with the villages of the Samburu
region.
Photo: Samburu women singing at a tribal festival.
Serving the world to serve Bahrain
Refining operations break
more records
The average crude run to the Refinery
was 257,400 BPD, of which 32,900
BPD came from the Bahrain Field with
the remainder Arabian Light Crude
through the A-B pipeline. This was
3,000 BPD above target.
Refining operations turned in another
strong performance. Thanks to effective
teamwork between engineering,
maintenance and process unit
operations, five annual records were
broken in 2008:
•
Lowest fuel oil yield at 15.8%v
•
Highest asphalt yield at 3.6%v
•
Highest liquid recovery at 101.2%v
•
Lowest mass loss at 0.59wt%
•
Highest refining margin
A view of the control room at the LSDP where operators
ensure maximum yields from diesel, naptha and kerosene.
Also, significant monthly records of the decade were achieved during the year:
•
Highest crude run of 270.3 MBPD was attained in May.
•
Lowest fuel oil yield of 14.0% was achieved in July.
•
Lowest mass loss of 0.57wt % was achieved in September.
The first full year of Hydrocracker operation has resulted in the total product yield reaching a record
figure of 101.2%v. A record high gross Kerosene yield of 25.5%v was also achieved.
The Laboratory has continued to strive for excellence and one of the highlights of the year was receiving
the prestigious Air BP Aflas "2007 Best Performing Laboratory Award" in August 2008. The award
recognises accuracy and precision in laboratories testing Aviation Turbine Fuel. Around 50 laboratories
competed worldwide.
This work is critical to the quality of Bapco's export products, and one reason why the highest levels
of customer service have been maintained. Cornerstone of this success is Bapco's quality management
system, ISO9001:2000, which is assessed and audited twice-yearly by inspectors from the British
Standards Institution (BSi).
Safeguarding the mechanical integrity of our assets, the percentage of scheduled equipment inspections
completed on time reached 100% in 2008. The On-Stream Factor for the whole year was 93.66%,
Operational Availability was 97.48% and Mechanical Availability was 98.43%.
The careful planning, organising and execution of major T&I's and shutdowns is crucial to overall
production levels. Of the two largest undertaken during the year, on 5VDU and 4A CDU, the latter was
five days shorter than past durations, and successfully combined normal T&I work, investment projects,
major asbestos removal and asset preservation work.
Tank repairs involved work on 28 tanks of different sizes and at various stages of repair during the year.
Following best practice, new aluminium dome roofs will be installed on four tanks during 2009.
Annual Review 2008
14 - 15
SINGAPORE
Singapore is one of the major refining centres in the world, and is the
main recipient of Abu Safah crude. This crude is a good feedstock for
those refineries capable of running heavier crudes.
Photo: A detail of a bronze hanging decoration of a dragon in Singapore.
Serving the world to serve Bahrain
Better storage,
faster loading
Bapco's storage tanks at the Refinery and Sitra have a capacity of around 14 million barrels. Exports
travel along sea lines to the six-berth wharf from where 618 vessels transported product to 40 countries
world-wide in 2008.
In April the Ships Inspection Report (SIRE) was successfully implemented. The program database is
used by Oil Storage & Export Marine Operations Section as a primary tool to screen all ships prior to
chartering.
The main objective is to avoid the chartering of sub-standard ships which could endanger the marine
environment and Bapco loading facilities.
To segregate the ultra-low sulphur (10ppm) diesel from the higher sulphur diesel grades and so avoid
contamination, a new sea line was laid to the Wharf T-Head. In January 2009 new pumps will be
commissioned allowing a loading rate of 15,000 barrels
per hour for both grades of diesel.
The marketing terminal at Sitra distributed a total of 1,440
million litres of product to the local market in 2008.
Unleaded gasoline amounted to 761 million litres, diesel
494 million litres, and LPG 82 million litres. Sales of
asphalt amounted to 56 million litres while kerosene sales
were 33 million litres.
Sales of aviation jet fuel, which travels by pipeline to
Bahrain International Airport, amounted to 223 million US
gallons.
Bapco continues to upgrade its network
of service stations to provide the best
customer service.
Technological advances
for business advantage
To maintain control of costs and optimise operations
Bapco is constantly looking to apply technological
advances in all areas of the Company.
Significant progress was made on Bapco's e-procurement programme, with a successful pilot project
leading to preparation for full-scale implementation. This is in direct support of Bahrain's e-Government
Initiative. The Company also made significant progress along the road to public tendering, despite the
complex nature of many of its contracts. Both these will assist the Company's efforts to achieve greater
transparency.
•
•
•
•
On the production side, Bapco is looking at enhanced oil recovery (EOR) technology as a means to sustain oil and gas production.
In the tank storage area, the Company has begun implementation of advanced gauging techniques using SAAB radar gauging technology, providing accuracy to +/-0.4mm.
Near Infra-Red analysers now control gasoline blending to reduce product giveaway and enhance profits.
The use of "smart fuel cards" to streamline cash collection system has been expanded and the Company has embarked on an ambitious plan to upgrade and modernise service stations.
In the worldwide study conducted by Solomon Associates - the world leader in benchmarking and
performance measurement - Bapco has achieved a respectable overall 2nd quartile position in Refinery
Advanced Process Control and Automation analysis. Bapco was also commended as a world leader in
the testing of Safety Instrumented Systems (SIS). This is the first time Bapco has occupied such a lead
position in a Solomon survey.
Annual Review 2008
16 - 17
NeTHERLANDS
Known also as Holland, the Netherlands has been an important Bapco
customer for jet fuel for commercial aircraft, and kerosene for conversion
into jet fuel. Now Bapco is looking to expand its European sales with
strong marketing of its ultra-low sulphur diesel.
Photo: Windmills are an essential part of the Dutch landscape. They are
used primarily to irrigate canals or dykes, and help prevent flooding by
pumping water through the land drainage system.
Serving the world to serve Bahrain
Personal development
for a future of promise
Bapco is a vibrant and energetic company playing a key role in the development
of young Bahrainis. Training in craft and technical skills has been at the centre of
this activity inside the Company, and outside through the Skills for the Workplace
programme which was organised in collaboration with the Ministry of Labour.
The two-year programme, which concluded in May 2008, fulfilled the Company’s
vision of creating a pool of talented Bahraini technicians to meet the ever-growing
needs of the local industries. A total of 618 young Bahrainis graduated through
this programme with about 200 being awarded internationally recognised skill
competency certificates.
Developing young graduates to become the managers of the future has been a
pressing concern for the Company. Among these, 87 are benefiting from indvidual
development programmes, which include special courses, mentoring and
montoring. More than 20 supervisory development courses in 18 different
subjects were conducted for 275 supervisors during 2008.
The Company is now accredited as an awarding centre for the Institute of
Leadership and Management (ILM) qualifications. The first group of 12 employees
were awarded their ILM certificates in March 2008, one of whom later received
an award at the international ILM Learner of the Year award ceremony in London.
A second group is progressing well towards completion of their course of study,
which concludes in the first quarter of 2009.
Bapco also supports other major leadership and mentoring programmes, such as
the prestigious Crown Prince International Scholarship Programme, by providing
funding for scholarships, mentors and on-the-job training opportunities.
In 2008 Bapco had 33 employees on scholarship awards, with the overall
sponsorship and scholarship programmes encompassing more than 300 students
in Bahrain and overseas, with an emphasis on chemical and petroleum engineeriing disciplines.
But nowhere is Bapco’s commitment to personal development more evident than
in its female workforce. To mark Bahraini Women’s Day on December 1, the
Company held a celebratory event attended by more than 250 Bahraini female
employees - about 9% of the total Bahraini workforce at Bapco. During the year
two women were promoted to superintendent positions and one to manager,
while another 29 were promoted.
A new award - the Chief Executive Award for Excellence - to recognise employees
who live and champion Bapco’s corporate values and demonstrate outstanding
initiative was launched during the year. Three awards are made each quarter.
Salary allowances and employee benefits were substantially increased to maintain
the competitiveness of Bapco’s employment package.
Bapco maintained a strong relationship with its employees through the trade
union, and the overall spirit of cooperation was amicable. This has resulted in
constructive resolution of individual and company-wide issues through regular
negotiation meetings.
Annual Review 2008
18 - 19
SOUTH KOREA
Shipments of naphtha are sent to South Korea where they are used as
feedstock for the manufacture of petrochemicals, and ultimately into the
making of a huge range of products including plastics, synthetic yarns and
silks.
Photo: Children giving a traditional drum dance performance. The drum
dance is one of the most important dances in South Korea, with adult
dancers sometimes holding drums much taller than themselves.
Serving the world to serve Bahrain
Protecting the environment:
progress recognised
ISO 14001:2004 certification
One of the most significant achievements of 2008 was to gain certification to the internationally
recognised environmental management standard ISO 14001:2004.
An independent two-stage audit was carried out by Bureau Veritas (BV) during November
and December 2008 to assess Bapco's environmental management system (EMS) against the
requirements of the ISO 14001:2004 standard.
BV stated that Bapco's commitment towards environmental protection is clearly evident in its
compliance plan and actions to raise environmental awareness amongst employees, contractors and
the community at large.
Refinery Gas Desulphurisation Project (RGDP)
This environmental project with an estimated cost of US$151 million, will significantly reduce air
emissions and improve effluent water quality at the Bapco Refinery to meet the latest environmental
regulations. The new facilities include a sulphur recovery unit, liquid sulphur degassing, tail gas
treating unit, sour water stripping and amine treating units.
During 2008 the project was completed mechanically and made ready for commissioning in
November and December. By the end of the year RGDP had achieved almost 4 million employeehours without a lost-time accident, a significant achievement for such a complex construction
project. It is expected that all the units will be in operation during the first quarter of 2009.
2008 also saw the first full year's operation of the cleaner and larger sulphur handling facility. The
amount of sulphur produced as a by-product will increase from around 70,000 metric tonnes to
150,000 tonnes per year when the combined output of the LSDP and RGDP is available.
Bapco Green School Award
An innovative award scheme to reward public secondary schools in Bahrain for environmental
projects undertaken by students was launched by Bapco in the 2004/2005 academic year.
The scheme, in association with the Ministry of Education, encourages participation in conservation
projects such as saving water, energy efficiency and recycling.
Bapco’s newest project, the Refinery Gas Desulphurisation Plant,
is the most important environmental project ever undertaken by the Company.
Annual Review 2008
20 - 21
EHS Week
More than 20,000 people attended the Family
Day at the Bahrain International Circuit, part of
Bapco’s Environment, Health and Safety (EHS)
Week. The aim is to increase awareness among
employees and their families of many
environmental, health and safety issues
through fun activities such as competitions,
quizzes, entertaining exhibits and educational
giveaways. The theme for the 2008 EHS Week
was “Beyond Compliance”, reflecting
Bapco’s commitment to help its employees
and contractors take its strong EHS values into
their homes and communities.
Exceptional health
and safety record
In July 2008, Bapco achieved the British Safety
Council (BSC) five-star rating in health and
safety management. Bapco is the first company
in Bahrain to achieve such a prestigious rating,
and allows the Company to be nominated for
an international Sword of Honour award.
The Chief Executive of Bapco at the flag-raising
ceremony to mark Sitra Girls School success in
winning the 2008 Green School Award.
Once again Bapco’s safety record was exceptional:
•
•
•
The Company achieved three million employee-hours in July and 4.9 million employee-hours in November, worked without a lost-time accident.
An Operational Excellence Audit by Chevron and two OHSAS audits were successfully
completed in 2008.
Following the prestigious Robert Campbell Award in 2007, Bapco has been chosen as a case study by the University of Pennsylvania (Wharton Business School).
As part of the Company’s continued
concern for employees’ well-being, a
health survey has been conducted, and
a new Health Promotion Programme
established. Health awareness sessions
have commenced; campaigns to help
employees give up smoking, and to
lose weight, are planned for 2009.
The hospital in Awali and Clinic in the
Refinery continued to provide
exemplary service.
Health and safety are the prime concern in all
Bapco’s activities. Here a regular exercise is
being held to practice the rescue of workers.
Serving the world to serve Bahrain
US$2m support for
the community
Besides contributing more than 70% of the national economy and being the largest industry employer
in Bahrain, Bapco also leads the way in contributing to the social and cultural life of Bahrain, spending
US$2 million in 2008 in donations and sponsorships to support and promote a wide variety of causes
and events.
The company is one of the main sponsors of the Bahrain International Circuit which hosts the annual
Formula One Grand Prix; Bapco also contributes to educational organisations, sports clubs and events,
charity funds, social and cultural clubs, and a host of professional and specialised exhibitions and
conferences.
Bapco was one of the first companies to support the Bahrain Injaz project when it was launched in
2006 and continues to be a strong supporter, contributing financially and providing employees as
volunteers.
Aiming for long-term
sustainable growth
In the past few years, the world economic climate became fraught with uncertainty as financial
markets, political unrest, and volatile commodity and oil prices made business planning all the more
difficult. This was confirmed by the unprecedented situation the oil industry now faces following the
near-collapse of the global banking system and rapid economic recession.
Unprecedented situation the oil industry now faces following the near-collapse of the global banking
system and rapid economic recession.
Today the Enterprise Risk Management System is even more crucial as the Company seeks to map out
scenarios, assess risks and put contingency plans in place to protect critical business processes, and to
limit expenditure, secure markets and ensure appropriate levels of funding.
Bapco will continue to implement its strategies by concentrating on the long-term sustainable growth of
both upstream and downstream operations with short-term price rises playing a relatively minor role in
the executive decision-making.
Despite the world economic situation, Bapco will press ahead with its business philosophy to seek out
new areas of growth and diversification, so that when the global upturn comes we will be better placed
to take advantage of new opportunities.
In all its endeavours the aim will be to achieve operational excellence: for Bapco, that means a safe
work environment, empowered employees, quality products, and satisfied customers.
Crude Sales (Abu Safah)
3.3%
4.0%
CHINA
5.2%
38.6%
6.9%
Singapore
Japan
Australia
China
8.3%
Malaysia
Korea
India
Kenya
10.4%
Others
10.6%
12.7%
China is one of Bapco’s most distant customers. Such
distance affects the competitiveness of Bapco
products, and also impacts on profit margins.
Nevertheless, Bapco has been successful in shipping
crude to the Far East, China and Australia.
Photo: Aiwan Pavilion in Hunan Province was built
in a maple wood in 1792, and was a favourite place
of Mao Zedong, who wrote a poem which was
inscribed in a tablet there in the 1950s.
Annual Review 2008
Annual Review 2008
22 - 23
‫‪Serving the world to serve Bahrain‬‬
‫اللـجن ـ ــة العلي ــا إلدارة بابك ــو‬
‫‪The Board Committee‬‬
‫�سع ــادة الدكتور عبداحل�سي ــن بن علي م ــريزا‬
‫رئي�س اللجنة العليا إلدارة بابكو‬
‫‪H.E. Dr. Abdul-Hussain bin Ali Mirza - Chairman‬‬
‫ا إلدارة الـ ـ ــتنـ ـ ـفـيـ ـ ــذي ــة‬
‫‪Executive Management‬‬
‫عب ــدالـ ـكــرمي ال�س ـي ــد ‪ -‬الرئيــ�س الت ـنـفيـذي‬
‫‪Abdulkarim Al-Sayed - Chief Executive‬‬
‫عادل امل ؤ�يد‬
‫نائب الرئي�س التنفيذي‬
‫لال�ستك�شاف واالنتاج بالوكالة‬
‫الدكتور �إيون ترينبل‬
‫نائب الرئي�س التنفيذي‬
‫للتكرير والت�سويق‬
‫‪Dr. Eion Turnbull‬‬
‫‪Adel Al-Moayyed‬‬
‫‪Deputy Chief Executive Acting Deputy Chief Executive‬‬
‫‪Refining and Marketing Exploration and Production‬‬
‫في�صل املحرو�س‬
‫نائب الرئي�س التنفيذي‬
‫(مهمة خا�صة)‬
‫‪Faisal Al-Mahroos‬‬
‫‪Deputy Chief Executive‬‬
‫)‪(Special Assignment‬‬
‫ي�سر اللجنة العليا إلدارة بابكو أ�ن تتقدم بخال�ص ال�شكر والتقدير لكل من ال�سيد عبدالرحمن عبداهلل وال�سيد غلوم‬
‫أالن�صاري وال�سيد عبداللطيف �إ�سماعيل ‪ -‬أ�ع�ضاء ا إلدارة التنفيذية العليا الذين تركوا العمل بال�شركة �إبان عام ‪ ،2008‬و أ�ن‬
‫ت�شيد بخدمتهم الطويلة و�إخال�صهم وتفانيهم يف دعم م�سرية بابكو طيلة ال�سنوات املا�ضية‪.‬‬
‫‪The Board of Directors of Bapco pays tribute to the many years of dedication to‬‬
‫‪the Company by the following senior management who left office during 2008:‬‬
‫‪Abdul-Rahman Abdulla, Ghuloom Al-Ansari, Abdullatif Ismail‬‬
Annual Review 2008
‫�سعادة ر�شيد حممد املعراج‬
H.E. Rasheed Mohammed
Al-Me’araj
‫عبدالرحمن عبدالرحيم‬
‫مدير عام ا إلنتاج واحلفر‬
A. Rahman A. Rahim
General Manager
Production and Drilling
‫أ�نور خلف‬
‫مدير عام اال�ستك�شاف‬
‫وهند�سة البرتول‬
Anwar Khalaf
General Manager
Exploration and
Petroleum Engineering
‫الدكتور ال�شيخ حممد بن خليفة‬
‫�آل خليفة‬
Dr. Shaikh Mohammed
bin Khalifa Al-Khalifa
‫عي�سى أالن�صاري‬
‫مدير عام ال�شئون‬
‫الهند�سية‬
Essa Al-Ansari
General Manager
Engineering
‫عبدالرحمن‬
‫عبداحل�سني جواهري‬
Abdul Rahman Abdul
Hussain Jawahery
‫أ�حمد �صالح النعيمي‬
Ahmed Saleh Al-Noaimi
‫ح�سني أالن�صاري‬
‫ح�سن جعفر‬
‫مدير عام التكرير(ال�سابق) مدير عام ال�صيانة‬
Hussain Al-Ansari
General Manager
Maintenance
Hassan Jaffar
General Manager
Refining (Outgoing)
‫نوروز فراز‬
‫مدير عام الت�سويق‬
Nowrooz Faraz
General Manager
Marketing
‫حممود العلوي‬
‫حممد اجلامع‬
‫الدكتور داود ن�صيف‬
‫�إبراهيم طالب‬
‫مدير عام التكرير(احلايل) مدير عام اال�سرتاتيجية مدير عام املوارد الب�شرية مدير عام ال�شئون‬
‫وال�شئون ا إلدارية‬
‫وتطوير �شئون العمل‬
‫املالية وتقنية املعلومات‬
Mahmood Al-Alawi
General Manager
Finance and IT
Mohamed Al-Jamea Dr. Dawood V. Nassif
General Manager
General Manager
HR and Administration Strategy and Business
Development
Ebrahim Talib
General Manager
Refining (Incoming)