Finance & IT Division in Bahrain Petroleum Company B.S.C

THE BAHRAIN PETROLEUM COMPANY

PRESENTATION ONFINANCE & IT DIVISION

TO

EVERYBODY

26th NOVEMBER 2014

THE BAHRAIN PETROLEUM COMPANY BSC (CLOSED)

• BAPCO, wholly owned by the Government of Bahrain, is engaged in the oil industry including refining, distribution of petroleum products and natural gas, sales and exports of crude oil and refined products.

• The company owns a 260,000 barrel-a-day refinery, storage facilities for more than 14 million barrels, a marketing terminal, and a marine terminal for its petroleum products.

• Ninety-five per cent of refined products are exports.• BAPCO’s prime customers for crude oil and refined

products are based in the Middle East, India, the Far East, South East Asia and Africa.

2

1. Introduction

2. Overview of Corporate Organisation Chart

3. Overview of Finance & IT Organisation Chart

4. Overview of Departments in Finance & IT

5. Finance & IT – Key Department Functions– Financial Accounting– Management Accounting– Special Projects– Procurement – Legal Advisor– Information Technology

6. Finance & IT – Key Current Initiatives

7. Finance & IT - 2014 Strategic Priority Outputs

8. Finance & IT Division – Summary Head count

AGENDA

3

The Finance & IT Division of Bapco incorporates all of the “traditional” roles and responsibilities of Finance and Information Technology functions as well as providing contracting services to users.

In addition, the Division co-ordinates and manages the reporting of Company operations and performance to the Ministry of Finance (“MoF”) , National Oil & Gas Authority (“NOGA”) and Nogaholding.

This brief presentation sets out the main roles and responsibilities of the Division.

INTRODUCTION

4

Chief Executive

D CHIEF EXECUTIVERefining &Marketing

GMMaintenance

GMRefining

Snr MgrEngg Ser

Unit

GMMarketing

GMStrategy &Bus. Devt.

GMFin & IT

GMHR & Admn

GMMajor Engg

Projects

GMExploration& Pet. Eng

General Maintenance

Refinery Maintenance

Field Maintenance

• Refining Operations/Planning

• Distribution & Terminal Operations

• Oil Storage & Export operation

• Refinery Tech. Serv.

• Fire,Health & Safety

• Engineering Services

• Process Control

• Reliability• Env, Affairs

• Product Sales• Crude & • Aviation sales• Local

Marketing &Distribution

• Supply & Planning

• Corporate Planning

• New Business Development

• Management Acctg

• Financial Acctg

• Treasury• Board

activities• Information

Technology• Procurement• Materials &

Warehousing• BMP

Fnancing• Legal• Insurance

• HR• Training &

Development• Awali Services• Medical

Services• Security• Public

Relations

• A/B Pipeline• BMP

• Exploration• Petroleum

Engineering & Development

• Gas Distribution

BAPCO CORPORATE ORGANISATION CHART

5

GENERAL MANAGERFINANCE & IT

MOHAMMED JAWAD

LEGAL ADVISER

S.M.R SIDDIQ

MGR. FINANCIAL

ACCTGJAMEEL. A.

NABI

MGR. MANAGE

MENTACCTG

ADNAN. Y. RAMADAN

MGR – ITD

ABDULLA RAEES

MANAGERPROCUREMENT

& MGR PROC. RESEARCH &

SUPPORTHASSAN MURADI

LEGAL CONSULTANT

ELHAG BAKER

MGR. SPL PROJECTS

NARAYANAN SESHAN

FINANCE & IT – ORGANISATION CHART

6

Financial Accounting

• Financial Accounting works at the heart of Bapco operations, very close to our business units and is responsible for different financial activities including

Financial Reporting • Accounts Payables • Accounts Receivables • Financial Reporting • Credit Control • Payroll and Marine Accounting

slide 7

Management Accounting

•

The purpose of the Management Accounting Department is to aid management in decision-making and promote optimal business performance through effective planning and control, and by providing accurate, timely and relevant information to all levels of the Company’s management.

slide 8

Financial Accounting

Manager 1Financial Accounting

Secretary 1Financial Accounting

Superintendent 1

General Accounting

Senior Accountant 1 Treasury

Superintendent 1Marine Accounting

Superintendent 1 Accounts Payable

Superintendent 1Sales Accounting

Accountants 2Treasury

Head Accounts 1 clerk

Treasury

Accountants 2Credit Control

Superintendent 1Payroll & Benefits

Head Accounts clerk 1Credit Control

Senior Accountant 1Accounting Control &

Reconcillation

Accountant 1Accounting Control

& Reconcillation

Senior Accountant 1Payroll

Accountant 1 Payroll

Head Accounts 1 ClerkPayroll

Accountant 1Benefits

Head Accounts 1 ClerkBenefit

TAA 1 Administrator

Payroll

Senior Accountant 1Payroll & Benefits

Accountants 2Payroll & Benefits

Senior 1 Accountant Marine

Accounting

Accountants 5Marine Accounting

Head Clerks 5Marine Accounting

Senior 1 Accountant

Empac SupportAccounts Payable

Senior 1 Accountant

Payable

Accountant 1Payable

Head Accounts Clerk 1 Customs & Inventory

Control

Head AccountsClerks 2

Payable

Accountant 1Procurement Accounting

Head Accounts Clerks Contracts Payable 2Procurement Accounting

Head Accounts Clerks 2 Material Payable

Procurement Accounting

Senior Accountant 1

International Sales Accounting

Accountants 3International

Sales Accounting

Senior Accountant Local Sales 1

Accounting

Accountant 1Local Sales Accounting

Head 3 Accounts

ClerksLocal Sales Accounting

Accountant 1 Misc. Receivable

Sales Accounting

9

1. Financial AccountingIncludes Payroll, Sales Accounting, Treasury etc.

2. Management AccountingIncludes Management Reporting, Budgetary Control, and monitoring, Investment Accounting, Insurance and risk management, Office Services

3. Special Projects - BMP Financing & other related Projects

4. Procurement (Materials & Services)5. Legal6. Information Technology Department (ITD)

OVERVIEW OF DEPARTMENTS IN FINANCE & IT

10

FINANCIAL ACCOUNTING DEPARTMENT – KEY FUNCTIONS

SECTION KEY FUNCTIONS

Financial Control

Annual Revenues - circa US$ 11 Billion

Strict adherence to LC (Letter of Credit) policy and procedures for all international sales; which accounts for over 90% of refinery revenues.

Collection of all local sales revenues.

Invoicing and collection of all Abu Saafa crude oil revenues managed by Bapco on an agency basis (on behalf of the Kingdom of Bahrain)

Strong policies and procedures in place with high degree of control/approval process

Credit Control Function

Cash Control / Treasury

Cash waterfall arrangement with lending banks requiring compliance with banking covenants.

Cash-call from Ministry of Finance controlled by Financial Accounting – cash flow forecasting and management.

Accounts payable – use of e-banking and BACS methods. Management of foreign exchange requirements. Management of SIP (Strategic Investment Projects) US$1 Billion Financing: - draw

downs, interest payments, etc. Management of Employee Loans/Savings Schemes.

11


GeneralAccounting

Producing GL Financial Reports including Corporate Reports Manage monthly GL (General Ledger) closing Credit Control Cash and Banking Management of cash call from Government and cash flow Financial Statements

Accounts Payable

Control & Processing of local payments Control & Processing of foreign payments Control and processing for materials, stores and associated expenses, including Customs

Duties, Stock write offs etc.

Payroll & Benefits

Control & processing of payroll, benefits and expenses Management of Housing and Savings Schemes Time and attendance and Human Resources Management System

Sales Accounting

Invoicing of all revenues, including: international, local, aviation etc. Management of all Sales L/C issues Miscellaneous Accounts Receivable

Marine Accounting

Processing of all documentation for international shipments

FINANCIAL ACCOUNTING DEPARTMENT – KEY FUNCTIONS

12

MANAGEMENT ACCOUNTING DEPT. – KEY FUNCTIONS

a) Financial Performance Reporting, Costing, Budgetary Control, Financial Planning & Forecasting.

b) Accounting, control and reporting of investment expenditure and fixed assets.

c) Management of the Company’s Insurance / Risk Transfer Portfolio

d) Provision of Office Services Note: The above functions are managed by different sections within the Department, as outlined in the following slides.

13

SECTION MANAGEMENT ACCOUNTING - KEY FUNCTIONS

Reporting & Profit Analysis

Producing monthly financial reports, including cash flow and business unit performance reports.

Providing all external reports to NOGA, nogaholding, Ministry of Finance etc. Presentation of Company’s Annual Profit and Cash Budgets and Plans Producing Balanced Scorecard Reports.

ExpenseAnalysis

Review and Analysis of all expense related items for monthly reporting and annual budgets.

Developing/Maintaining all internal costing rates (manpower, usage of Company facilities etc).

Consolidation, Review and Analysis of the Annual Expense Budget.

Investment & Asset Accounting

Maintenance of proper records of all the Company’s fixed assets, together with the maintenance and operation of physical verification programmes.

Providing and maintaining information relating to all investment projects.

Insurance and Financial Risk Management

Management of the Company’s Insurance Portfolio. Identify and quantify all risk exposures and effect necessary and cost effective insurance

cover (where required). Co-ordinate and Manage all risk assessment and related surveys Support wider company programmes on ERM and Business Continuity.


14

SECTION MANAGEMENT ACCOUNTING - KEY FUNCTIONS

Business Unit Performance Analysis

Divisional Senior Accountants (DSA) are assigned to Key Business Areas DSAs act as vital source/link for the business areas and provide all assistance with

regard to financial performance related matters.

Office Services Provision of a range of office services including copying, imaging, internal mail distribution, provision of office furniture and equipment etc.

Other tasks Review and Reporting of performance on a monthly basis for the Company’s bonus scheme.

Preparation of profitability studies, as required from time to time

Adhoc reports/analysis required by Senior Management / other Stakeholders

Co-ordinate and manage Company’s participation in Solomon Associates refining performance studies


15

INTERNAL REPORTS EXTERNAL REPORTS

1. Monthly Corporate Performance Reports – this includes the package for Corporate plus relevant Business Units.

2. Cost Owner Reports for Expenses

3. Monthly Balanced Scorecard Reports under the Company’s Performance Management System.

1. Cash Flow Statement to Ministry of Finance.

2. Monthly Government Statistical and Performance Report.

3. Monthly Report package for National Oil and Gas Authority (NOGA).

MANAGEMENT ACCOUNTING DEPT. – KEY REPORTS

16


BMP Financing Co-ordinate with relevant internal and external agencies to arrange the Financing for BMP in an effective manner in line with Project and Financing Timeline

Act as the key contact for Bapco’s Financial Advisor(s) on the Project and ensure that all their requirements are met in a timely manner

Manage the role assigned as member of Decision Review Board (DRB) Regular co-ordination with Project team and other business areas to ensure that

financing requirements are appropriately relayed Co-ordinate with Nogaholding and other team members to ensure smooth functioning of

various financing activities Need based co-ordination with stakeholders Maintain and Manage relationships with Financial Institutions and other relevant

external agencies

Other One off Projects

Co-ordinate with relevant internal and external agencies to work on need based one-off Projects; e.g. Financial Independence, Establishing Trading Unit in Marketing Division etc.

Need based advisory role / assistance on other activities in Finance Function

SPECIAL PROJECTS – BMP FINANCING & OTHER PROJECTS

17

Procurement Functions – Main Responsibilities

• Procurement planning and action of all tendering processes for materials and services.

• Evaluate suppliers performance.• Maintain materials inventory at optimum level.• Ensure materials and services availability in a timely manner.• Provide suitable storage facilities for materials inventory.• Provide delivery services for materials inventory to Users.• Liaison with the Tender Board and full compliance with Tender Law.• Pre-qualification of companies.• Quantity re-measurement.

18

Procurement Functions – Current Structure

HEADCOUNT ACTUAL APPROVED

Purchasing 27 32

Research & Support 13 18

Warehouse & Inventory

37 54

Management 2 4

TOTAL 79 108

GM F&IT

Manager Procurement

(Hassan Muradi)

Supt Warehouse (1)

Supt Inventory (1)

Supt Purchasing (4)

Manager Procurement Research & Support

(Hassan Muradi)

Supt Proc R & S (1)

19

Procurement Functions - Statistics

20


COMMODITY PO Base ValueCatalysts/Additives 19,248,464.91$ Chemicals, Gases 3,256,189.75$ Compressors/Pumps Spares 2,758,374.76$ Valves, Cocks and Spares 2,042,040.84$ Tubes, Heat Exchangers 1,994,411.95$ Variable Cheml's/Catalyst 1,967,806.74$ Pipes, Steel and Alloys 1,834,227.58$ Medical Supplies 1,799,227.12$ Instruments and Spares 1,586,558.01$ Boilers, Furnace Spares 1,480,503.36$ Electrical Supplies 1,376,557.06$ Pipe Fittings 1,125,512.55$ Plates, Bars - Metal 1,085,059.56$ Pressure Vessels Spares 1,044,692.90$

2013 PO - Top Commodity

21


Tender Type No. of Tenders % No. of Tenders Value ($) %Value ($)PUBLIC 52 13% 113,152,032.05 21%SELECTIVE 200 52% 394,432,746.83 73%SINGLE SOURCE 137 35% 34,327,959.99 6%TOTALS 389 100% 541,912,738.88 100%

REPORT ON TENDER TYPES - 2013( MATERIALS & SERVICES) (PUBLIC/SELECTIVE/SINGLE)

WITH VALUE BD >10 K ($26,595)

PUBLIC13%

SELECTIVE52%

SINGLE SOURCE

35%

TENDERS FROM JAN TO DEC 2013

22

PURCHASE REQUISITION WITH ESTIMATED VALUE BD50,000 & ABOVE

REQUISITION RECEIVED

CONTRACT FILE MEMORANDUM (CFM) SHOWING PROPOSED BIDDERS LIST (BL)AND BID EVALUATION CRITERIA (BEC) PREPARED AND FORWARDED FOR MANAGEMENT/PMC APRROVAL

CFM APPROVEDBY MGT/PMC

SEEK TENDER BOARD’S APPROVAL OF PROPOSED BL AND BEC

REQUEST FOR QUOTATION (RFQ) ISSUED TO APPROVED BIDDER/S

Y

N

BL AND BEC APPROVED

BY TB

N

Y

RFQ ACKNOWLEDGMENT & INTENTION TO BID CONFIRMED BY BIDDER/S

RECEIPT OF BIDS BY TENDER BOARD

OPEN BIDS BY TENDER BOARDIN THE PRESENCE OF BIDDERS

TENDER BOARD PUBLISHES RESULTS AND ISSUES TO BIDDER/S

BIDS RECEIVED BY PROCUREMENTDEPARTMENT FROM TENDER BOARD

1

23

PURCHASE REQUISITION WITH ESTIMATED VALUE BD50,000 & ABOVE

PROCUREMENT DEPT PREPARES COMMERCIAL

BID ANALYSIS

TECHNICAL DEPT PREPARES TECHNICAL

BID ANALYSIS

BEST SCORING BID IS APPROVED

CFM JUSTIFYING IF OTHER THAN BEST SCORING

BIDDER IS RECOMMENDED

N

CFM APPROVEDBY MGT/PMC

Y

ISSUE LETTER OF INTENT, OBTAIN PERF BOND

AWARD

ISSUE REGRET LETTERSTO UNSUCCESSFUL BIDDERS AND RETURN INITIAL BONDS

ADVISE TENDER BOARD, IF REQUESTED

N

Y

AWARD APPROVEDBY TB

SEEK TENDER BOARD APPROVAL TO AWARD

Y

CORRECTIVE ACTION TAKENAND/OR NEGOTIATIONS HELDIN LINE WITH TB DIRECTIVES

N

1

24

Procurement Functions - Transformation

25

Procurement Functions – 2018 Structure

Manager Procurement

Category LeadMaintenance

Services

Category Lead Engineering,

Equipm & Capital Proj

Category LeadCatalyst,

Chemicals & Ind Svcs

Supt Procurement Ops & Contracts

Mngmt

Supt Business Optimisation &

Support

Supt Warehouse & Inventory

Admin Assistant

HEADCOUNT

Category Management 13

Procurement & Contract Management 20

Business Optimization 13

Warehouse & Inventory 24

Management 2

TOTAL 72

26

Procurement Functions – Q1 2014 Highlights

• HAY job evaluations completed and job grades approved by HR Management Committee.

• Chevron Change Management SME visit and development of supporting Change Management Plan.

• Annual Divisional Contracting and Procurement Plans in development (ACPP’s)

• Cross functional team formed to develop started Procurement metric’s.

• Inventory Master Data Cleansing RFP Awarded • Completed competency plans for procurement

career development.• Inventory management project preparing items

for stock disposal and processes in review for inventory recovery and disposal .

• Training:– Three employees trained in Change

Management– Two employees trained in Lean Sigma

Q1 Activities• Announcement and onboarding of new

procurement organization.• Start recruitment process for vacant key positions• Divisional Contract Review Committee’s approval

of ACPP’s and execution update.• Inventory Management Project:

– Finish Wave 1 inventory recovery processes design– Identify and complete wave1 inventory disposal– Award and initiate master data cleanse project

• Continue Procurement Metrics project• Start Contract Process development.• Start Category Plan Development.• Launch two lean projects focused on:

– Reducing Tender timeline– Improving delivery quality ( lead-times and full)

Q2 Focus Areas

• Delay in organization structure impacting business plan execution.

• Expedite recruitment of vacant key personnel.• Availability of business resources remains an

issue.

Risks

27

Procurement Functional Key Metrics 2013 Target1Q YTD Actual

Status

Trend

Value DeliveryValue Creation Savings (First Cost, TCO, Cost Avoidance, IRIS)

$ 13.2MM $15 MM $3.43MM

SourcingPercentage of spend managed under contract 95.9% 96% 53.00%

Number of Suppliers making up top 80% of spend 49 45 41

Percentage of spend under local content program 73.63% 75% 47.67%

Number of days to complete Tender Process 40 35 47

Transactional% deliveries on time & complete 28.75% 50% 30%

Supplier average lead time in days 82 days 70 days 89days

O&M Inventory Dollars $63.3MM $55MM $66.5MM

Health & SafetyNumber of incidents – staff 0 0 0

PeopleNumber of training hours per employee 6 hours 12 hours 6 hours

Organizational Capability

Operational Excellence

TechnologyRelationships

Performance Key Trend

On target (+/- 5%) Improving

Behind Target (> 5 %)

Stable

Urgent Action Required

Deteriorating

Procurement Functions - Transformation

28

Render Professional Counsel and Advice to -Board of Directors, Bapco Management and CompanyDepartments

Secure and protect Company’s legal benefits and rights. Educate Company personnel to recognize legal problems. Review, negotiate and draft Commercial Agreements. Prepare sub-leases between Company and third parties. Liaise with Government Legal Advisor(s). Monitor outside claims – including Labour Law Claims. Maintain Schedule of Authorities, Commercial Registration,

Powers of Attorney, etc. Review and Advise on Licensors Agreements; DPSA &

EPSA. Monitor recent Bahrain and International Laws in sofar as

these impact Company’s Operations.

LEGAL DEPARTMENT – KEY FUNCTIONS

29

Reorganisation of Financial and Management Accounting Departments

Financial Independence BMP Financing Arrangement Merging of Procurement and Procurement

Support & Research Departments. Procurement Department initiatives Minimise and simplify CFMs for Contract approval

FINANCE & IT DIVISION – KEY CURRENT INITIATIVES

30

2014 CORPORATE PRIORITY OUTPUTS Future Bapco Increased Competitiveness Strategic Government – NOGA Projects

2014 DIVISIONAL PRIORITIES

Financial AccountingUp skilling of Financial Accounting Staff Management Accounting Business Unit AccountingProcurement Department Implementation of Category Management Contract Process Development Inventory OptimizationInformation Technology DepartmentImplement CSMART 20 Critical Controls

FINANCE & IT DIVISION – 2014 PRIORITY OUTPUTS

31

HEADCOUNT SUMMARY – FINANCE & IT

Department Roster (Nos) Actual (Nos)

Finance & Accounting 124 99

Information Technology 58 77

Procurement 108 70

Legal 2 3

TOTAL 292 249

Note: The above data is as of end April 2014

32

ITD Overview

33

ITD Organization

Manpower History In 2004, 40 staff added due to Merger and Agency, total became 97 In 2010, PI study started with 90 and recommended reduce by 31 In 2012-2013, achieved release of 15, and expected further 8 by end 201475

34

ITDKEY PROCESSES

CUSTOMER RELATIONSHIPS

SECURITYSOLUTIONSCREATION

(PROJECTS)

OPERATIONALSERVICESDELIVERY

GOVERNANCE &ADMINISTRATION

STRATEGIC PLANNING

Business RelationshipManagement

MarketITD

Offerings

Understand & Analyze

Requirements

Create & Implement

IT Projects

Manage Resources

EnableDelivery

Capability

Service Level

Management

Asset Management

Change Management

DemonstrateBusiness

ValueDevelop &

ManageStrategic Plan

Infrastructure& Capacity

Planning

Establish and MaintainSecurity Plan

Deploy Security

Solutions

Project Management

Office(PMO)

ProvideServices

Policiesand

Procedures

ManageCustomer

Satisfaction

Sustain Delivery

Capability

Business ContinuityPlanning

RiskManagement

Implementation and Awareness

Monitor and Review

ITD Key processes

35

Bapco Network Diagram

ITD Current Footprint

36

75 IT employees

2307 IT Users

231 IT Applications

& Tools

4 Geographical

Area

1635 other IT

equipment

25 + 80V Servers

1 IBM RS6000

2281 PCs278 Data

Network components

3842 Voice components

36

Business Context- Leveraging More IT

BAPCO IT up to

2010

BAPCO IT in

2015BAPCO IT Today

37

ITD Way Forward- What Recent Achievements?

Business Impact of

IT

Efficient IT

Effective IT

Finalising IT ReOrganization Eliminated one Section Surplus List Redeployment Success Plan IT Advisory IT Collaboration Portal Established CSIP

Eliminated Consult Cost Employees Surveys Clients Surveys Townhall meetings Training Framework Bahraini Training IT Advisory GIP Initiatives tracking Business IT Portal

eService

38

ITD Way Forward- Staff Reduction (1) Normal Attrition (2) Explore Outsourcing

2013 2014 2015 2016 2017 2018 2019 2020

Headcount (Start of Year) 78 76 66 65 65 61 57 56

Natural Attrition Retirees -2 -3 -3 -2 -3 -2 -1 -2

Special Case Retirees (Releases, early, Medical, Surplus) -1 -9 -2 -2

Newcomers Expact (Recruitment, transfer, etc.) (Kishan) 1

Newcomers Bahraini (Trainee, recruitment, transfer, etc.) 2 2 2 1

Headcount (by year end) 76 66 65 65 61 57 56 54Cost saving from Retirees Employee by year end 346,500$ 1,391,000$ 264,000$ 129,000$ 483,500$ 342,500$ 113,000$ 223,000$ 223,000$

Accumulative Saving by year end 346,500$ 1,737,500$ 2,001,500$ 2,130,500$ 2,614,000$ 2,956,500$ 3,069,500$ 3,292,500$ 3,169,000$

7 Years ITD Resource roadmap plan

Headcount (Start of Year) 78 76 66 65 65 61 57 56Bahrani count (Minus Retiress, Plus Newcomers) 49 48 41 42 42 41 41 40Expact Count (Minus Retiress, Plus Newcomers) 29 28 25 23 23 20 16 16

Bahranization % 63% 63% 62% 65% 65% 67% 72% 71%Expatriate % 37% 37% 38% 35% 35% 33% 28% 29%

39

IT Way Forward- Key IT KPIs

Key IT KPIs & Expected value delivery

% of headcount reduction over the next 5 years

% of reduction in OpEx

Increase in IT visibility & user satisfaction due to new processes (BRM & PMO) & eService facility

Increase in appreciation of IT value delivered due to Charge/show back

40

ITD Action Plan - Projects Portfolio

41

ITD Action Plan- Strategic Priority Output 2014

Computer Security Management And Response Team

• Using the Dept. of Homeland Security’s 20 Critical Security Controls for Effective Cyber Defence.

• Two added by Bapco for Physical Security and Industrial Control Systems.

• Applies security controls, standards and metrics to all aspects of Bapco’s Information Technology.

42

ITD Action Plan - Governance Initiatives

43

ITD Action Plan- Calendar Initiatives

Communication sessions Comms (PSB) Comms (Open Dis) Comms (PSB) Comms (Open Dis)

Survey ITD Survey (2014) once every 2 years

User Survey (2014) once every 2 years

ITD Business & Technical Service Catalogue review

Service Catalogue Review

ITD staff training needs for budgeting

Collect ITD staff training needs for next year

IT Policy and procedure review

Review P&P

ITD Achievments for Bapco Annual Report

Prepare Annual ITD achievments report

Review ITD Resources, Release dates, &

Retirees

Hold Meeting with ITD Management to discuss this issue

IT Skills Matrix Review ITD staff Skills

PMO Budget Obtain project budget

ITD Other Budget Obtain Other budget

Initiate the collection of ITD internal

Initiatives/Projects from all Sections

Collect a list of ITD Initiatives/Projects

Quarterly Status Update


Review PMP & Merit

PMO Quarterly Review Quarterly Status Update


Review Vcation Plan

PMP and Merit Review

Review Vacation plan

Review ITIL Process

Arrange for IT workshop after Business planning workshop

IT Planning Workshop


Review New ITD Organization


Review ITIL Process

Review Apps list and Resource Allocation

Review list of Application & Tools

BusinessTraining Catalogue & user needs

Business Training Review

NOV DEC

ITD Websites Review Websites Review

MAY JUN JUL AUG SEP OCTTitle JAN FEB MAR APR

Communication sessions Comms (PSB) Comms (Open Dis) Comms (PSB) Comms (Open Dis)

Survey ITD Survey (2014) once every 2 years

User Survey (2014) once every 2 years

ITD Business & Technical Service Catalogue review

Service Catalogue Review

ITD staff training needs for budgeting

Collect ITD staff training needs for next year

IT Policy and procedure review

Review P&P

ITD Achievments for Bapco Annual Report

Prepare Annual ITD achievments report

Review ITD Resources, Release dates, &

Retirees

Hold Meeting with ITD Management to discuss this issue

IT Skills Matrix Review ITD staff Skills

PMO Budget Obtain project budget

ITD Other Budget Obtain Other budget

Initiate the collection of ITD internal

Initiatives/Projects from all Sections

Collect a list of ITD Initiatives/Projects



Review PMP & Merit

PMO Quarterly Review Quarterly Status Update


Review Vcation Plan

PMP and Merit Review

Review Vacation plan

Review ITIL Process


IT Planning Workshop




Review ITIL Process

Review Apps list and Resource Allocation

Review list of Application & Tools

BusinessTraining Catalogue & user needs

Business Training Review

NOV DEC

ITD Websites Review Websites Review

MAY JUN JUL AUG SEP OCTTitle JAN FEB MAR APR

ITD Challenges - Aging Workforce and not up to date Skills

Skill sets maturity

IT Bahranisation ratioIT Staff Age split

0 1 2 3 4

Operating Systems 4

Infrustracture Sevice 3

Application Server 4

Database 4

Web & Cloud Technology 1

Mobile Computing 0

Languages / Development Tools 3

Project Management Tools 3

Multimedia 2

Oracle eBusiness 3

Business Intelligence 0

Business & IT Knowledge 2

Business engagement skills 1

PMO Skills 2

Skill CategoryMaturity level

Actions1. Building list of Surplus staff

(Complete)

2. Multi Skilling through training and rotating staff (in progress)

3. Internal redeploy redundant/under-performing staff elsewhere (in progress)

4. Staff reduction to be achieved through natural attrition

5. Reviewing Application portfolio to freeze maintenance activities

6. Review outsourcing possibilities

> 20 > 30 > 40 > 50 > 55 > 600

5

10

15

20

25

6

22

17

23

7

0

45

IT Advisory Resources

FOCUS ON STRATEGY

FOCUS ON TACTICAL

46

Thank you

Approved Budget

Actual

SALES REVENUE

7,498.3 US$ Million 7,498.3 9,392.8

4,544.1 - Abu Saafa US$ Million 4,544.1 5,547.0

521.9 - Aviation US$ Million 521.9 398.1

176.2 US$ Million 176.2 307.5

92.3 US$ Million 92.3 93.3

1,162.9 US$ Million 1,162.9 1,054.9

392.8 US$ Million 392.8 358.2

14,388.5 US$ Million 14,388.5 17,151.8

OPERATING EXPENSES

409.5 US$ Million 409.5 428.6

97.3 US$ Million 97.3 93.7

35.2 US$ Million 35.2 10.0

(61.4) US$ Million (61.4) (55.7)

2.0 US$ Million 2.0 0.5

482.6 US$ Million 482.6 477.2

CASH FLOW

6,014.3 US$ Million 6,014.3 6,781.8

615.7 US$ Million 615.7 597.6

600.7 US$ Million 600.7 755.9

PRICE DIFFRENTIAL

1.97 US$/BBL 1.97 2.21

REFINING MARGIN

5.29 US$/BBL 5.29 6.48

0.27 Net Margin US$/BBL 0.27 1.71

0.82 US$/BBL 0.82 2.41

REFINERY OPERATION

255.0 MBPCD 255.0 263.8

4.92 US$/BBL 4.92 4.72

0.09 US$/BBL 0.09 0.05

EXECUTIVE SUMMARY

YTD DECEMBER 2013

Gross Margin

- Fixed

- Variable

- Interest on Strategic Investment Programme

- Transfer to Government Account / Tatweer / BLBOC

2013 Approved

Budget

- International

Total Sales Revenues

Crude Run

MOPAG Differential

Net Cash Flow to Govt. (Agency &Corporate)

-Strategic Trainees

Total Operating Expenses

(FINANCIAL PERFORMANCE)

Unit

Local Market Subsidy

Refining Cost per Barrel

Net Cash Margin

Banagas Processing Fee

Year to Date

Description

- Gas

- Feed Stock Lube

- Local

- Export Lube

Net Cash Flow to Govt. (Corporate)

48

Approved Budget

Actual

MARKET CRUDE PRICE

90.00 US$/BBL 90.00 106.13

92.00 US$/BBL 92.00 107.99

AVERAGE REALIZATION PRICE

90.00 US$/BBL 90.00 106.43

95.49 US$/BBL 95.49 111.46

BAHRAIN FIELD OPERATION

15,604 BBL'000 15,604 15,806

1,805 BBL'000 1,805 1,670

17,409 BBL'000 17,409 17,477

47.7 MBPCD 47.7 47.9

9.26 US$/BBL 9.26 9.71

BAHRAIN FIELD GAS PRODUCTION

1,593 MMSCFD 1,593 1,608

Flare & Venting MMSCFD 12

Compression MMSCFD 223

1,541 MMSCFD 1,541 1,384

0.20 Cost of Khuff Gas Production $/MMBTU 0.20 0.27

CAPITAL EXPENDITURE

102.6 US$ Million 102.6 33.3

54.4 US$ Million 54.4 45.0

2.5 US$ Million 2.5 0.8

20.8 US$ Million 20.8 12.8

180.3 US$ Million 180.3 91.9

MANPOWER & OVERTIME

2,701 Number 2,701 2,590

158,200 Hours 158,200 143,480

359,683 Hours 359,683 378,309

EXECUTIVE SUMMARY

YTD DECEMBER 20132013

Approved Budget

Overtime Hours - BAPCO - Unscheduled

Manpower Headcount

Total Gas Production (Excl. Flare & Compression)

- Profit

(FINANCIAL PERFORMANCE)

Unit

Bahrain Crude

Year to Date

- Mandated

Description

- Total

Average Baharin Field Production Cost at DEPSA

- Strategic

Overtime Hours - BAPCO - Scheduled

- Condensate

Total Gas Sales

Saudi Crude

Abu Saafa Crude

Refined Products

Baharin Field Production - Black Crude

Total Capital Expenditure

- Average

- Operating & Maintenance

49