LESSONS LEARNED FROM AL-SHAHEEN (ALS) OIL FIELD, GAS

Al-Shaheen CDM Project “Experience”

LESSONS LEARNED FROM ALLESSONS LEARNED FROM AL--SHAHEEN (ALS) SHAHEEN (ALS) OIL FIELD, GAS RECOVERY AND UTILIZATION OIL FIELD, GAS RECOVERY AND UTILIZATION

PROJECTPROJECTByBy

Adnan Fahad AlAdnan Fahad Al--RamzaniRamzani

Manager, Clean Development MechanismManager, Clean Development MechanismHSE Regulation & Enforcement Directorate HSE Regulation & Enforcement Directorate

١


ContentsContents•• IntroductionIntroduction

•• Keys of considerationKeys of consideration

•• Relevant IssuesRelevant Issues

•• (ALS) through the CDM Project Cycle(ALS) through the CDM Project Cycle

•• QP structure for Project implementationQP structure for Project implementation

•• ConclusionConclusion

٢


Introduction Introduction

• The global emission contain huge quantity of CO2e for which UNFCCC Parties has committed to reduce its effect on our existence.

• This subject has become a priority on each country agenda therefore, we have to contribute in this global Emission Reduction demand.

• Qatar Petroleum was the pioneer within the GCC to participate effectively by implementing the first and largest Project in the region.

٣


Keys of ConsiderationKeys of Consideration

•• Will the Project contribute to sustainable Will the Project contribute to sustainable development?development?

•• Will Project implementation produce greenhouse Will Project implementation produce greenhouse gases emission reduction which is real, gases emission reduction which is real, measurable, and additional?measurable, and additional?

•• Whether the Project Carbon Credit Whether the Project Carbon Credit CERsCERs can be can be effectively helpful to determine the decision effectively helpful to determine the decision impact in order to proceed with the Project?impact in order to proceed with the Project?

٤


Keys of consideration (Application to ALS)Keys of consideration (Application to ALS)

•• Contribution to sustainable developmentContribution to sustainable development•• Reduction of air pollution and other environmental impacts Reduction of air pollution and other environmental impacts

associated with flare reduction.associated with flare reduction.

•• Provision of employment, especially during construction phases.Provision of employment, especially during construction phases.

•• Production of additional StateProduction of additional State‘‘s energy capacity (i.e. electricity) by s energy capacity (i.e. electricity) by using less polluting sources.using less polluting sources.

•• Real, measurable and additional emission reductionsReal, measurable and additional emission reductions•• Reduction in flaring of associated gas will result in measurableReduction in flaring of associated gas will result in measurable

emission reductions.emission reductions.

•• Impact of evaluated and expected Impact of evaluated and expected CERsCERs revenue.revenue.•• The The CERsCERs help to stimulate investments in flare reduction Projects.help to stimulate investments in flare reduction Projects.

٥


Relevant IssuesRelevant Issues

•• Project activity Project activity –– clear and concise description of what clear and concise description of what constitute the Project activity, including Project boundary.constitute the Project activity, including Project boundary.

•• Project Participants Project Participants –– Decision on whether the Project be Decision on whether the Project be developed unilaterally or in partnership with a participant developed unilaterally or in partnership with a participant from an Annex I Party.from an Annex I Party.

•• Application of approved Baseline and Monitoring Application of approved Baseline and Monitoring Methodology Methodology –– Can any of the approved methodologies Can any of the approved methodologies by UNFCCCby UNFCCC--CDM EB be applied to the Project activity?CDM EB be applied to the Project activity?

•• Appropriate Baseline Scenario and Monitoring Plan.Appropriate Baseline Scenario and Monitoring Plan.

٦


Relevant Issues for (ALS)Relevant Issues for (ALS)

• The considerations given by QP to the relevant issues listed in the previous slide, are discussed briefly in the next few slides that take (ALS) Project through the entire CDM Project Cycle.

٧

1. 1. Project Project identificationidentification

2. 2. Small or Small or Large ScaleLarge Scale

3.3. Select Select approved approved Methodology Methodology

4. 4. Determine Determine Project Project Boundary Boundary 5.5.Decide on Project Decide on Project

Participant(sParticipant(s))

6. 6. Calculate Calculate Emission Emission ReductionReduction

7.7. Prepare Prepare PDDPDD CDM Project

CycleCDM Project CDM Project

CycleCycle

8. 8. Consultation with Consultation with DNA & Project DNA & Project Participant(sParticipant(s))


٨


(ALS) (ALS) –– Project IdentificationProject Identification

•• The (ALS) oil field has flared associated gas since The (ALS) oil field has flared associated gas since the oil field began operations in 1994the oil field began operations in 1994

•• With the CDM advantages, the opportunity to With the CDM advantages, the opportunity to recover and utilize the associated gas has started recover and utilize the associated gas has started in 2004in 2004

•• Since (ALS) oil field operations accounted for Since (ALS) oil field operations accounted for approximately 20% of gas flaring in the State of approximately 20% of gas flaring in the State of Qatar, the gas recovery and utilization project Qatar, the gas recovery and utilization project would contribute significantly to the regional COwould contribute significantly to the regional CO22emissions reduction.emissions reduction.

٩


(ALS) (ALS) –– Project Design Document PreparationProject Design Document Preparation

•• After project identification, three critical decisions has to After project identification, three critical decisions has to be taken by Qatar Petroleum:be taken by Qatar Petroleum:

–– Will the project be developed unilaterally or in Will the project be developed unilaterally or in partnership with another Project partnership with another Project developer(sdeveloper(s))

–– Use of inUse of in--house expertise or external consultants for house expertise or external consultants for the preparation of PDDthe preparation of PDD

–– Can any of the approved methodologies by the Can any of the approved methodologies by the UNFCCCUNFCCC-- CDM EB be applied to this ProjectCDM EB be applied to this Project

•• EcoSecuritiesEcoSecurities as consultant was appointed to prepare the as consultant was appointed to prepare the PDD and Project validation and registration.PDD and Project validation and registration.

١٠


(ALS) (ALS) –– Validation & RegistrationValidation & Registration

•• The following aspects of the Project were independently The following aspects of the Project were independently validated by DNV validated by DNV –– the appointed DOE:the appointed DOE:–– QP is the only Project participant who obtained the StateQP is the only Project participant who obtained the State’’s s

DNA authorization; Knowing that the State of Qatar has DNA authorization; Knowing that the State of Qatar has ratified the Kyoto Protocol on January 11, 2005.ratified the Kyoto Protocol on January 11, 2005.

–– ExEx--ante estimation of Project emission reductions is ante estimation of Project emission reductions is approximately 2,500,000 tCOapproximately 2,500,000 tCO22ee/year, the approved /year, the approved methodology AM0009 has been properly applied and the methodology AM0009 has been properly applied and the Project met all the applicability conditions.Project met all the applicability conditions.

–– AdditionalityAdditionality had been adequately proven.had been adequately proven.

–– An appropriate monitoring plan has been developed.An appropriate monitoring plan has been developed.١١


(ALS) (ALS) –– MonitoringMonitoring

• Al-Shaheen CDM Project activity is now in the monitoring phase and all the parameters required for determining the actual emission reductions were accomplished by the Project activity are being monitored as per the requirements of the monitoring methodology and the monitoring plan in the registered PDD.

١٢


(ALS) (ALS) –– Verification & CertificationVerification & Certification

•• The draft monitoring report for the first The draft monitoring report for the first monitoring period 2007monitoring period 2007--2008 was 2008 was achieved and completed by QP staff achieved and completed by QP staff only.only.

•• QP had invited the tenders consultant QP had invited the tenders consultant and and DOEsDOEs to undertake the Project to undertake the Project monitoring report for verification and monitoring report for verification and to request for to request for CERsCERs issuance.issuance.

١٣


QP structure for Project implementationQP structure for Project implementation

Learning from the experiences gained with AlLearning from the experiences gained with Al--ShaheenShaheenCDM Project, an active awareness in the CDM Project, an active awareness in the implementation of CDM Projects within QP was implementation of CDM Projects within QP was developed.developed.

•• June 2006 Corporate HSE organized an interactive CDM June 2006 Corporate HSE organized an interactive CDM training workshop.training workshop.

•• Corporate Environment & Sustainable Development Corporate Environment & Sustainable Development Department prepared a CDM Guidebook which was Department prepared a CDM Guidebook which was distributed in February 2007.distributed in February 2007.

•• In February 2007, H.E. the MD approved the establishment In February 2007, H.E. the MD approved the establishment of a highof a high--level QP CDM Committee, as shown in the next level QP CDM Committee, as shown in the next slideslide١٤


UNFCCCCDM Executive Board

Designated OperationalEntity (DOE)

State of Qatar(DNA)

QP CDM COMMITTEECDM PROJECT TASK TEAMS

QP - SENIOR MANAGEMENT

Endorsement

Guidance

PDDs

LoA

PDD

PDD + LoA + Validation Report

١٥


CDM Project Task Teams

Liaise and interact with Operational and Technical Departments on matters relating to CDM Projects to identify any CDM Projects

opportunity .

Obtain endorsement from Operational andTechnical Departments on the identified Projectswithin their Business Units.Develop (PDD) for each identified CDM Project.Make Recommendations to QP CDM Committee

١٦


QP CDM Committee

► Establish Qatar Carbon Management Plan (CMP).► Develop an Evaluation criteria for Projects.►Identify Projects opportunities within QP and Affiliates, according to its potential in contributing tothe State’s sustainable development programme.►Evaluate prepared PDD by Project Task Teams.►Ensure proposed Projects are in line with QP objectives and priorities

١٧


QP CDM Committee

► Obtain endorsement from QP Senior Management.►Liaise with the DNA to obtain Letters of Authorization.►Appoint Consultant / DOEs to validate the PDD and submit it to the UNFCCC-CDM EB for validation and registration.►Appoint Consultant / DOEs to verify the monitoring report and to request for CERs issuance from the UNFCCC-CDM EB.►Provide Carbon Credit Committee CER’s marketing proposals. ► Provide regular feedback to QP Senior Management.

١٨


Implementation structure of CDM Project at QPImplementation structure of CDM Project at QP

•• During February During February -- June 2007 through the Project Task Team June 2007 through the Project Task Team QPQP--CDM Committee has identified a list of potential CDM CDM Committee has identified a list of potential CDM Projects, which can be implemented across QP Operations and Projects, which can be implemented across QP Operations and Affiliated Companies.Affiliated Companies.

•• In July 2007, QP/ HSE Regulations & Enforcement Directorate, In July 2007, QP/ HSE Regulations & Enforcement Directorate, rere--structured with a fullstructured with a full--fledged the CDM Department.fledged the CDM Department.

•• The Directorate, through the CDM Department, now has the The Directorate, through the CDM Department, now has the mandate to identify and develop CDM Project opportunities mandate to identify and develop CDM Project opportunities across the State of Qatar.across the State of Qatar.

•• Identified potential CDM Projects are being prioritized for shorIdentified potential CDM Projects are being prioritized for shortt--, medium, medium-- and longand long--term implementation phases.term implementation phases.

١٩


ConclusionConclusion

•• AlAl--ShaheenShaheen Oil Field Gas Recovery and Oil Field Gas Recovery and Utilization Project was registered on 29 May Utilization Project was registered on 29 May 2007, which is the first registered CDM 2007, which is the first registered CDM Project activity within the GCC.Project activity within the GCC.

•• The State of Qatar and QP has learned The State of Qatar and QP has learned valuable lessons by implementing this valuable lessons by implementing this Project which reflect an incentive to work Project which reflect an incentive to work with similar CDM project participants within with similar CDM project participants within the Region and worldthe Region and world--wide.wide.

٢٠


Thank you Thank you ٢١

Documents

LESSONS LEARNED FROM AL-SHAHEEN (ALS) OIL FIELD, GAS