English - Abu Dhabi Sustainability Group

80 Pages·2011·2.64 MB·English

Developing Our Natural
Resources Responsibly
Abu Dhabi National Oil Company (ADNOC)
2010 Sustainability Report

”W e are responsible for the care of our environment and
the wildlife in it and its protection, not only for ourselves
but also for our children. This is our duty, the duty of
loyalty to our ancestors and our grandchildren as well.’’
The late Sheikh Zayed Bin Sultan Al Nahyan, founder of the UAE
About this Report
This is ADNOC’s second Reporting Cycle
sustainability report, disclosing our We will report on our sustainability progress
annually.
performance in the year 2010.
Ensuring quality in our sustainability
Our journey towards sustainability reporting began in
reporting
1997 when we committed to transparently report
We recognize that ensuring the quality and credibility
on our health, safety and environment (HSE)
of the information presented in this report is of
performance in annual HSE reports. In 2009, we
strong importance and we have therefore used the
expanded the scope of our reporting to encompass the
GRI “principles for defining quality”.
Global Reporting Initiative (GRI) G3 Sustainability
Reporting Guidelines, and replaced our HSE reports
Balance
with the first of our annual sustainability reports to
The report seeks to demonstrate transparency,
disclose our 2009 performance. In preparation for this
presenting achievements while also highlighting
2010 sustainability report, we further expanded the
the areas in which ADNOC believes there is an
scope to include the requirements of the International
opportunity to improve.
Petroleum Industry Environmental Conservation
Association/American Petroleum Institute (IPIECA/
Comparability
API) Oil and Gas Industry Guidance on Voluntary
This report provides comparative information for the
Sustainability Reporting (April 2005) .
period 2006-2010 and in some cases earlier years,
where possible.
Process for defining report content
This report focuses on ADNOC’s priority areas, which
Accuracy and Reliability
were identified through a process incorporating the
Significant effort has been made to ensure that
principles of the GRI and IPIECA/API frameworks.
the performance data is as accurate as possible.
These include:
In 2010, the Supreme Petroleum Council
(SPC) commissioned a dedicated electronic data
Materiality
management system for the centralized collection,
We believe the report covers the major issues that
evaluation and storage of sustainability data, via
reflect ADNOC’s significant economic, environmental
secure internet interfaces, across ADNOC.
and social impacts, as well as the issues that would
substantially influence the assessments and decisions
Clarity
made by our stakeholders.
This report targets a wide range of stakeholders with
varying levels of awareness of sustainability. ADNOC
Stakeholder Inclusiveness
has strived to make the report easily understandable
We have identified and considered the key
for the anticipated readers.
stakeholders, and we have outlined in the report
how the company engages them, identifies their
Assurance
priorities, and responds.
This report has not been externally assured.
Sustainability Context
GRI Application Level
We have considered global trends in sustainability
We have self-declared our reporting to be Application
for the oil and gas sector, and have also taken into
Level <A>.
account the regional and local contexts of our
operations.
Completeness and Boundaries of this Report
We have attempted to make this report as complete
as possible. The report pertains to ADNOC’s 2010
performance, covering our operations in the United
Arab Emirates unless stated otherwise. There are no
specifically excluded operations.
Contents
Message from the Secretary General 6 Health and Safety Performance 44
About ADNOC 8 Occupational Safety 45
ADNOC Group Companies 10 Process Safety 50
Occupational Health 52
ADNOC Key Projects 12
ADNOC Products and Markets 14
Social Performance 54
Stakeholder Engagement 16
Diversity and Equal Opportunity 55
Key Stakeholder Issues:
Human Rights 58
The Materiality Test 18
Society 59
ADNOC Governance and Strategy 20 Academic Institutions 61
HSE Management Framework 21 Product Responsibility 62
HSE Impact Assessments 22
Economic Performance 65
HSE Management Systems 23
Annual HSE Awards 71
Environmental Performance 24
Acronyms and Abbreviations 76
Emissions 25
Energy 31 Readers’ Survey 77
Transport 32 GRI/IPIECA Index Table 78
Materials 35
Report Contributors 80
Waste 36
Spills 38
Water and Effluent 40
Biodiversity 42
Please direct any questions regarding the Sustainability Report to:
Environment, Health and Safety Division
Supreme Petroleum Council
P.O. Box 898, Abu Dhabi UAE
Office: [phone]
Fax: [phone]
Email: [email protected]
This report is also available at www.adnoc.ae/sustainability
The contents of this report can be reproduced or re-printed provided
that ADNOC is credited
This report has been printed on recycled paper
ADNOC Sustainability Report 2010 5
Message from the
Secretary General
I am delighted to present our 2010 Sustainability Report for ADNOC and
its Group Companies. This report serves as an important tool to help us
chart our progress and improve our sustainability performance. It also
helps to motivate our Group Companies to actively explore opportunities
for improvement.
The oil and gas industry is faced with the global challenge of balancing growing energy demands
and economic development against the national and international concerns surrounding energy
security and climate change. In response to this growing challenge, ADNOC has made significant
achievements to diversify Abu Dhabi’s energy supply, with a particular emphasis in 2010 on
enhancing natural gas production from our gas reserves. We are also investing heavily in expanding
our gas supply network of pipelines, processing facilities and shipping fleet to enable consumption in
both domestic and international markets.
At the same time, we have sought new technologies to enhance oil and condensate recovery from our
existing fields. Throughout the implementation of our ambitious projects, we will maintain a strong
commitment towards reducing our greenhouse gas emissions and overall environmental footprint.
We will also look increasingly towards building capacity within our UAE national workforce through
our Emiratisation policy, and shall maintain the highest of safety standards across our operations and
work environments.
Ensuring the safety of our employees is of fundamental importance. Despite our untiring efforts to
prevent accidents, there were four regrettable work-related fatalities amongst ADNOC and its Group
Companies in 2010, affecting two employees and two contractors. At ADNOC, one fatality is one too
many. To prevent such accidents from occurring in the future, we have thoroughly investigated the
root causes of these incidents and we have implemented the necessary counter measures. Our 2010
Fatal Accident Rate (FAR) of 1.13 fatalities per 100 million man-hours is the lowest achieved since
reporting began in 1997, and is significantly lower than the industry benchmark of 2.76 fatalities
per 100 million man-hours (the International Association of Oil and Gas Producers (OGP) 2010
average).
ADNOC strives to develop its business in an environmentally, socially and economically responsible
manner and we will continue to search for new, cost effective and efficient solutions to optimize
resources so that we are better positioned to confront existing and future challenges.
We remain committed to demonstrate leadership in sustainability performance and will continue to
play a key role in the sustainable development of the Emirate of Abu Dhabi.
Dr. Jauan Salem Al Dhaheri
Secretary General, Supreme Petroleum Council
6 ADNOC Sustainability Report 2010
“ ADNOC strives
to develop its
business in an
environmentally,
socially and
economically
responsible
manner.”
ADNOC Sustainability Report 2010 7
About ADNOC
Abu Dhabi National Oil Company ADNOC’s headquarters are located in Abu Dhabi
(ADNOC) was established on 27 city in the Emirate of Abu Dhabi, UAE. Our major
operations are based in the UAE. Some of the joint
November 1971 to operate in all areas
ventures have offices in other countries, such as
of the oil and gas industry in Abu
Borouge which has marketing operations
Dhabi, United Arab Emirates (UAE). across Asia.
Since its establishment, ADNOC has steadily We are also very proud of our three academic
enhanced its competitive position through its sound institutions. These were established by ADNOC
business interest in 15 specialist subsidiary and joint to nurture a specialised, competitive, and highly
venture companies, known as the ADNOC Group professional young workforce for the local oil and
Companies. The Group’s diversified operations gas industry, and help create educated and engaged
cover all aspects of the upstream and downstream citizens for Abu Dhabi.
petroleum industry, including crude oil and natural
gas exploration, production, refining, processing, The Supreme Petroleum Council
distribution, global marketing, and the manufacture
of petrochemicals. The Supreme Petroleum Council (SPC) was
established under law No. 1 of 1988. The law
ADNOC’s efforts in the exploration and production clearly stipulates that the Council is the superior
field have concentrated on assessing undiscovered authority responsible for the petroleum industry in
reserves and optimizing hydrocarbon recovery by the Emirate of Abu Dhabi. The Council formulates
improving reservoir management. Today, ADNOC and oversees the implementation of Abu Dhabi’s
manages and oversees oil production of more than petroleum policy and follows up its implementation
2.7 million barrels per day (bpd), ranking it amongst across all areas of the petroleum industry to ensure
the top ten oil and gas producing companies in that the set goals are accomplished.
the world.
H.H. Sheikh Khalifa Bin Zayed Al-Nahyan, the
In the last few years, significant achievements were president of the UAE and Ruler of Abu Dhabi, is
made in the expansion and development of gas the chairman of the SPC.
fields to meet the growing needs and development
plans of Abu Dhabi, and in our bid to support the >7 billion
Abu Dhabi Economic Vision 2030 which seeks to
diversify Abu Dhabi’s energy supplies. We are also
enhancing gas injection requirements in order
to enhance oil and condensate recovery from the standard cubic feet per day
producing fields. In 2010, ADNOC saw to the
natural gas production (wet gas)
production of over 7 billion standard cubic feet per
day (scfd) of natural gas (wet gas).
ADNOC is committed to sustainable development >2.7 million
and ensuring a harmonious balance between
people’s needs and the Earth’s resources. Our
track record in occupational health and safety and
barrels of crude oil per day
protection of the environment sets the standard for
the oil and gas industry around the Arabian Gulf.
ADNOC
JAN FERTIL oversees work on the FERTIL-2 project,
Highlights in 2010 in which new Ammonia and Urea plants will be
installed at FERTIL’s fertilizer complex in Ruwais.
8 ADNOC Sustainability Report 2010
15 ADNOC Group Companies
3 Independent Operators
3 ADNOC Academic Institutions
ADNOC’s Organisational Structure
Supreme Petroleum Council General Secretariat
Academic Institutions ADNOC CEO ADNOC Divisions/Departments
The Petroleum Institute Civil Projects Division
ADNOC Technical Institute Internal Audit Division
Glenelg School of Abu Dhabi Scholarship Department
Business Line Directorates Other Directorates
Exploration and • A DCO (60%)
Abu Dhabi Company for Onshore Oil Operations Finance Directorate
Production Directorate
• A DMA-OPCO (60%)
Abu Dhabi Marine Operating Company
• Z ADCO (60%)
Zakum Development Company
• A l Hosn Gas (60%)
Abu Dhabi Gas Development Company Ltd. Management
• G ASCO (68%) Support Directorate
Abu Dhabi Gas Industries Ltd.
• A DGAS (70%)
Abu Dhabi Gas Liquefaction Company Ltd.
• ELIXIER (51%)
Human Resources
• N DC (100%)
National Drilling Company and Administration
Directorate
Marketing and • ADNOC DISTRIBUTION (100%)
Refining Directorate • A DNATCO & NGSCO
Abu Dhabi National Tanker Company (100%)
National Gas Shipping Company (70%)
* ADOC
• T AKREER (100%) Abu Dhabi Oil Company Ltd.
Abu Dhabi Oil Refining Company
* TOTAL ABK
TOTAL Abu Al Bukhoosh
Petrochemicals • B orouge
Directorate Abu Dhabi Polymers Company Ltd. (60%) *BUNDUQ Company Ltd.
Borouge PTE Ltd. (50%)
• F ERTIL (66.6%)
Ruwais Fertilizer Industry
(%) ADNOC share of ownership in
each Group Company
Shared Services • ESNAAD (100%)
* Independent Operators
Directorate • I RSHAD (60%) operate under ADNOC/SPC
Abu Dhabi Petroleum Ports Operating directions for Health, Safety and
Company Environment (HSE) matters
GASCO awards EPC contracts for two new major projects:
FEB Al Hosn Gas was established by Emiri
Ruwais New Sulphur Terminal and Habshan Sulphur Granulation
Decree 2010/3 to develop the sour
Plant. Both projects are expected to be completed by the end of
Shah Gas Field.
2013.
ADNOC Sustainability Report 2010 9
ADNOC Group Companies
Associated Gas Offshore Associated Gas Project
Shah Gas Development Project
ADCO GASCO Al Hosn Gas
• O perates 6 major onshore fields: Asab, Sahil, • O perates 3 desert plants for gas processing • O perates the Shah Gas Field (180 km
Shah, Bab, Bu Hasa, North East Bab fields and NGL extraction: Asab, Bu Hasa, and south-west of Abu Dhabi)
(Dabbiyah, Rumaitha and Shanayel) Habshan/Bab complex (Bab has additional • 2 0 drilled wells (Phase I development),
• B ab field was the first field to be discovered sour gas treatment facilities) with space and manifold connections for
(1954) • O perates a Fractionation Plant in Ruwais an additional 12 wells
• T he Bu Hasa field is one of the top twenty • O verseeing several major expansion projects, • C omplete facilities expected to be operational
fields in the world in terms of proven reserves implementing new gas processing facilities and in production by end of 2014
• Total concession area covers over 21,000 km2 and revamping existing ones at various plant
• O ver 1,100 oil and gas producer wells and locations
~ 190 exploration wells
• C urrent oil production capacity: 1.4 million
barrels of oil per day (bpd) (sustainable for
> 3 decades) with plans to increase to
1.8 million barrels of oil per day by 2017
propane,
butane, ethane residue
naphtha gas
Jebel
Dhanna network and industrial
refined Ruwais consumers
crude oil products Jetty
TAKREER Borouge FERTIL
• Operates two oil refineries: • O perates Borouge 1 and 2 plants in Ruwais • Operates two plants in the Ruwais Industrial
- Abu Dhabi Refinery: located in Umm Al Nar, (combined capacity of 2 million tonnes of Area:
capacity of ~ 80,000 barrels of oil per day polyolefins per year) and a manufacturing - Ammonia Plant: capacity of 1,300 metric
- Ruwais Refinery: capacity of ~ 417,000 plant in Shanghai, China (annual capacity of tonnes per day
barrels of oil per day 50,000 tonnes with potential for expansion to - Urea Plant: capacity of 2,300 metric tonnes
• Capacity at the Ruwais Refinery is due to 80,000 tonnes per year) per day (MTPD)
increase from 417,000 bpd to 817,000 • O verseeing the delivery of the Borouge 3 plant • Overseeing the delivery of the FERTIL-2
bpd by end of 2013, upon completion of the at Ruwais (will increase production capacity to project that aims to increase production
Ruwais Refinery Expansion (RRE) Project 4.5 million tonnes) and the commissioning of a capacity to 3,300 MTPD of ammonia and
new plant in Guangzhou, China 5,800 MTPD of urea by 2013
refined
products gaseous and liquified
(local sales) nitrogen
ADNOC DISTRIBUTION ELIXIER KEy
• O perates 193 motor vehicle stations across • Operates an Air Separation Plant in Ruwais
Project under
Abu Dhabi, Al Ain, the Western Region and • C urrent capacity:
development
Northern Emirates - 23,800 Nm3/h of Gaseous Nitrogen (GAN)
• Provides a range of services: - 4,850 Nm3/h of Liquified Nitrogen (LIN) Industrial terminal
- Storage and distribution of liquid fuels and LPG - 1,670 Nm3/h of Liquified Oxygen (LOX) for processing,
- Lube oil and grease production and marketing • O verseeing the debottlenecking of the plant to storage and export
- Bunkering (marine) and aviation fuelling support the future gas demands of the Group of products
- Auto services and convenient stores Companies in the Ruwais Complex, with plans
to invest in a 2nd plant to support Borouge
ONSHORE
ADCO awards EPC contract for increasing production ESNAAD receives three new state-of-the-art MAR
of the BAB Field in an initiative to raise production vessels to join its fleet in its bid to increase
capacity to 1.8 million barrels of oil per day (bpd) by 2017. services to the oil sector in Abu Dhabi.
10 ADNOC Sustainability Report 2010