By Pratap John
Chief Business Reporter
Qatar Shell’s vision is to be the “partner of choice” to QP and the State of Qatar by “delivering safe, reliable and efficient business performance,” says managing director Michiel Kool.
This, he said, will be achieved by supporting QP in every way Qatar Shell can, and by supporting the Qatar National Vision 2030. “We do so by focusing on our people, our stakeholders and our technology,” Kool said in an interview with Gulf Times.
He said Shell maintains an important strategic partnership with QP internationally. This includes QP’s acquisition last year of a 23% interest in an oil producing asset, offshore Brazil, operated by Shell known as BC-10. This deal complements QP’s existing investments in two Shell chemical joint ventures in Singapore.
On the significance of BC-10, Kool said, “BC-10 is an extraordinary asset and uses some of our industry’s most innovative technology to extract hydrocarbons from underneath the seabed in ultra-deep water. To put it in context, the distance between the BC-10 Floating Production, Storage and Offloading vessel and the seabed is equivalent to approximately six torch towers stacked on top of one another. The producing wells reach from the subsea floor deep into the ground to the oil reservoir.
“We are very pleased to have QP as a partner on BC-10, which represents QP’s first foray into the deep water and into the upstream sector in Latin America. I have a special affinity with BC-10 as I worked on the project earlier in my career.”
On the decision to cancel the Al Karaana Petrochemicals Project, the Qatar Shell managing director said, “Choosing to invest in a multibillion dollar mega-project requires that it offers robust value. In this case, the project was challenged by high capital costs that made the project uncommercial, particularly in the prevailing economic climate in the oil and gas industry. It was without a doubt a difficult decision, but tough choices require tough decisions and we jointly decided with QP not to proceed with the project. Despite the outcome, we very much value being given the opportunity to partner with QP and together evaluate a project of this size and scope.”
Pearl GTL remains the centrepiece of Shell’s partnership with QP and, despite challenging oil and gas prices, the plant continues to generate significant value with its product slate of GTL gasoil, kerosene, base oil, naptha and normal paraffin that is sold to customers around the world.
Separately, Shell partners with QP on Qatargas 4, an LNG asset that really sets a “global benchmark” for operational excellence and reliability.
“It is testament to Shell’s confidence in Qatar and its leadership that we have invested over $20bn in Qatar since 2002,” said Kool, a Dutch national, who was appointed Qatar Shell’s chairman and managing director last July.
He said Qatar Shell’s “commitment to Qatar” extended beyond its direct economic contribution.
“We aim to make a wider contribution to society. I am especially proud of our partnership with Qatar Development Bank to help develop a thriving private sector by increasing the percentage of our spend that is placed with Qatari-owned enterprises, including small start-up companies. This year alone, more than 30 Qatari small and medium sized enterprises (SMEs) have been shortlisted to tender for seven specific business opportunities and become part of the Pearl GTL supply chain.”
In the area of human development Shell’s “greatest contribution” is the “recruitment and high quality development” of its Qatari staff, he said.
“Investment in people is just as important as our capital investments as a way to secure long-term benefits for Qatar and Shell. Although we now have Qataris working at all levels and across all parts of our business, there is more work to be done. Our priority is to further grow Qatari representation in professional roles at every level of Qatar Shell, including the most senior leadership team.”
Asked whether Qatar Shell was doing anything special to attract the youth to the oil and gas industry, Kool said, “As one example, but one that promises to be a great opportunity for children to understand the role of energy in their lives, we are partnering with QP and the Qatar Tourism Authority to host ‘Energy World Qatar 2015’ in Doha in late November at the new Doha Exhibition and Convention Centre. Energy World Qatar is a programme of fun and interactive games and challenges that explore the future of energy and provide important learning experiences. By introducing school children to energy concepts and the role of energy in their lives, we’re aiming to create a pipeline of future Qatari talent for our industry.”
Kool: Supporting QP in every way.
