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TAQAWORLD Issue4 Magazine English

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  • 04

    North star big interviewPete Jones on safety, risk and exploration in the North Sea Frontier spirit peopleCowboy Jim Berry dispenses wisdom from the rodeo

    Building bridgesstrategic relations Khaled Bader Al Sayari forges relationships on the front line

    A brighter future education TAQA helps deaf children in Ghana to fulfil their potential

    perspectives on the energy industry

    Rising to meet the growing global demand

    for fresh water

    january 2014

  • What you thinkTAQAWORLD is the global magazine from TAQA, the Abu Dhabi National Energy Company, distributed to our employees, partners and friends in 11 countries. We aim to provide insight into our industry and open a window onto the people who make things happen. We welcome your comments on this issue, and your suggestions for future articles. Email: [email protected]

    TAQA is a global energy company with its headquarters in Abu Dhabi and a footprint spanning four continents. Our name TAQA means energy in Arabic.

    At TAQA, we have a powerful sense of purpose, a clear vision for the future and a shared set of values. These are the pillars of our business, driving our strategy and the way we interact among ourselves and with all our stakeholders, whether they be customers, investors, governments, industry partners or the communities touched by our activities.

    Corporate CommunicationsAbu Dhabi National Energy Company PJSC TAQA PO Box: 55224Abu Dhabi, UAET: +971 2 691 4900F: +971 2 691 4666 E: [email protected]

    Photography: Corbis, Getty Images and TAQA.

    TAQAWORLD is printed in the UAE on paper sourced from sustainable forests, and approved by the Programme for the Endorsement of Forest Certification (PEFC).

    PEFC/01-31-83

    PEFC Certified

    This product is from sustainably managed forests and controlled sources

    www.pefc.org

    04 letters to the editorReaders comments on hot topics and previous issues of the magazine

    05 taqa todayA message from Carl Sheldon, Chief Executive Officer

    06 our worldA round-up of the latest developments across the groups global operations

    10 water worldThe global water market is going through a 21st-century renaissance

    14 the cowboy wayJim Berry explains the lure of the rodeo and his role at TAQA

    18larger than lifeWe train our lens on the Bergermeer plant, Europes largest open-access gas facility

    20 the big interviewPete Jones outlines the challenges he faces as Managing Director of TAQA in the UK

    24 music from the heartMusic has always been a passion for our Legal Counsel Elham Al-Marzouqi

    26 gas revolutionWe talk to David Cook, TAQAs Head of Oil & Gas, about how the shale gas boom is transforming the energy industry

    30 passport to successKhaled Bader Al Sayari on why his role as the groups point man is anything but predictable

    32 lessons for lifeHow we help deaf schoolchildren in Ghana to reach their potential

    in this issue

    As the sun fades behind Kurdistans rugged mountain range, TAQAs Atrush rig lights up the night sky. Located 85 kilometres from Erbil in the Kurdistan region of Iraq, Atrush is initially expected to produce 30,000 barrels of oil per day when it comes online in 2015.See TAQA News on page 6.

    big picture

    light show

  • 04 issue 04 perspectives on the energy industry 05

    We welcome your comments on this issue, and your suggestions for future articles. Email us at [email protected]

    letters

    safety procedures saved my lifeI enjoyed reading the article in your last issue about how TAQAs well-implemented safety procedures prevented any damage being caused from gas leaks at the start of the year. It served as a sharp reminder of how dangerous some of the work in the oil and gas industry can be and its a point I wish to reiterate.

    As a diver for Bibby Topaz, I frequently work on oil rig drills and regularly go through strict safety measures to ensure a successful dive. But sometimes things can still go wrong. Last year, a Dynamic Positioning System failure aboard the vessel I was working from severed my umbilical cord and I slipped into unconsciousness without gas for nearly 25 minutes. By the time I was found, I was freezing and lifeless.

    While the bravery, quick thinking and professionalism of all those aboard Bibby Topaz played an invaluable role in my survival, there can be no doubt that the safety controls, procedures and management structures in place were invaluable in effecting a successful rescue.

    It was a collection of actions that saved my life. Our offshore construction manager followed protocol seamlessly. The bridge crew professionally followed procedures to regain control of the ships Dynamic Positioning System. Our dive supervisor prepared the team for the rescue of a seemingly dead diver with efficiency. The technicians had meticulously serviced my dive helmet, which ensured it did not fail at the critical moment. The rescue procedures were almost second nature to the dive team, thanks to years of drills and safety training. All these factors came together to allow the team aboard the ship to turn what seemed like a hopeless scenario into a success story.

    Safety procedures and protocols can all too easily be dismissed as paperwork exercises or lip service to an overbearing safety culture, but for us that night they were very real, and very necessary. Without them I wouldnt be here today. Its as simple as that.Chris LemonsSaturation diver, DSV Bibby Topaz

    decoupling water and powerMost Middle Eastern countries need to produce drinking water using desalination techniques. The most popular way of producing drinking water is by the use of cogeneration plants, which also produce power. Such plants use the waste heat from the generation cycle to heat water, which is produced to World Health Organization drinking water standards.

    The cogeneration aspects of this operation are generally at their most efficient when the generation and water plants are at their maximum output. This cozy relationship is perfect if demands are expanding at this optimum ratio. However, typically, things are never optimal. During the past few years, Abu Dhabi has experienced a significant increase in power demand that has not been matched by the need for water.

    This increase has culminated in the building of four nuclear power plants. Nuclear plants are immensely complex and there is little engineering appetite for the building of large cogeneration-type

    ghana still has a long way to goI was interested to read the article in your last issue about Ghanas status as a role model for economic and political reform in West Africa.

    While there have been huge improvements in the country, Ghana still faces major challenges, many of which are highlighted in the World Bank Ghana Offices flagship energy report, published in July 2013.

    Many parts of the country still experience electricity shortages and rolling power blackouts, and this at a time when Ghanas fast-growing economy is becoming even more dependent on reliable energy supplies.

    If we are to reach our growth potential, changes need to be made. Among them, we must review existing power structures to eliminate their dysfunction and improve planning so that new generation projects can be continually developed to keep up with the growing demand. We must also restructure key sector utilities for better accountability, efficiency and effectiveness. Finally, we must simplify processes and speed up decisions to boost private sector investment in power generation.

    So while the tide is turning in Ghana, integral changes still need to be made if were to consolidate our middle-income economy status. I believe this laudable goal could be achieved by the end of the decade if there is proactive decision-making across the board (from the government to private companies), along the lines that weve recommended in our report.

    To view the World Banks report on Ghanas energy sector, visit tinyurl.com/qylmtxhSunil MathraniTask team leader, World Bank Report, Ghana

    power stations. Some smaller ones are in operation though. The Abu Dhabi sector will need to adopt a different approach to future water production, and this is one of the key challenges for the sector going forward. Such challenges will likely require the sector to move towards membrane technology, or reverse osmosis (RO), rather than purely thermal.

    RO installations are likely to become more prevalent in the emirate, especially along the Gulf coast. This is not without its challenges, especially the high temperatures and higher salt content by volume compared to the east coast of the UAE. However, the future is likely to see a major expansion of RO stand-alone plants, using electricity as their primary fuel and allowing a decoupling between the production of electricity and water. Consequently, the prospect of independent water producers is now a real possibility in the emirate.Nick CarterDirector general, Regulation and Supervision Bureau of Abu Dhabi, UAE

    dear reader,The water industry is coming of age. A commodity that was long taken for granted is now increasingly valued as highly as other natural resources, especially in the Arabian Gulf region. To illustrate this, in our cover story we explore an industry that is expected to grow to a value worldwide of US$432 billion annually within the next five years.

    Of course, TAQA is already the worlds second largest desalination company through its ownership of eight power and water desalination plants in the UAE. But the country is moving towards more independent water projects, and away from the traditional power and water model. This trend will only increase once the countrys nuclear energy programme comes online in a few years time. With the establishment of a dedicated water division, and the development of the UAEs first reverse osmosis plant in the emirate of Fujairah, TAQA is well placed to be a market leader in this area.

    Our reputation revolves around acting as a responsible steward of strategic natural resources, and operating to the highest international standards for safety and the environment. Nowhere is this more important than in the North Sea, where we operate five offshore oil and gas production platforms. Pete Jones, the new Managing Director in the UK, is quick to underline this. In his first major interview since moving to TAQA, he talks in-depth about the work the company is doing to prolong the life of our North Sea assets and manage risk in a late-life business.

    As you will read in this issue, we are also active members of the communities where we operate. We highlight this side of our business with a feature on educational programmes in Ghana. Naturally, pursuing excellence is a guiding light for all TAQA activities. And this is illustrated by the people who help make TAQA tick, such as rodeo rider and field operator Jim Berry and Elham Al-Marzouqi, Legal Counsel and concert cellist. They are just two more examples of the diversity and talent of our staff. I am delighted to present the fourth edition of our magazine and look forward to presenting more stimulating stories from our global business in 2014.

    Kind regards,

    taqa today

    Carl SheldonChief Executive Officer

    were well placed to be water industry leaders

    TAQAWORLD is the global magazine from TAQA, distributed to our employees, partners and friends across 11 countries.

  • canada

    *

    Power & Water Oil & GasEnergy Solutions

    * Pending final approval

    A round-up of the latest developments across TAQA's global operations

    taqa news

    06 issue 04

    Iraq block development approved by authoritiesTAQA has been given the go-ahead from the Kurdistan Regional Government (KRG) for the first phase in the Atrush Block development.

    Located 85 kilometres from Erbil in the Kurdistan region of Iraq, Atrush is initially expected to produce 30,000 barrels of oil per day (bpd) when it comes online in 2015. That is likely to increase to 100,000 bpd.

    The Kurdistan region of Iraq is an exciting exploration frontier and has tremendous potential, said David Cook, Executive Officer and Head of Oil & Gas at TAQA. Through the Atrush development, TAQA is delighted to be part of the economic progress and growth in the region.

    It is our ambition to build an integrated business in the Kurdistan region of Iraq, including potential power and water projects in addition to oil and gas infrastructure developments.

    perspectives on the energy industry 07

    iraq

    TAQA hits UK production recordCormorant Alpha is back on stream and helping TAQA break production records.

    The North Sea oil production platform handles 10,000 barrels per day (bpd) of crude from TAQAs South Cormorant field, and is also the conduit for the Brent System Pipeline. This carries approximately 10% of the UKs total oil production.

    Since coming back online, TAQAs production in the UK has hit a record 70,000 bpd. That Cormorant Alpha is back up and running is a tribute to the expertise and teamwork of our North Sea workforce, said Pete Jones, who took over as Managing Director of TAQAs UK business in July. The way that the business handled the issues on Cormorant Alpha earned it a great deal of respect across the industry. It was extremely open, honest and professional. Within the

    north sea

    Shuweihat S2 plant powers 300,000 homes in Abu DhabiA new US$2.7 billion power and water plant in Abu Dhabis Western Region of Al Gharbia is generating enough electricity and water for more than 300,000 homes.

    The facility has been officially inaugurated by His Highness Sheikh Hamdan bin Zayed Al Nahyan, the UAE Rulers Representative in the Western Region. He was joined by other senior Government representatives and dignitaries at the ceremony. [This] is a practical translation of the interest of the state in providing basic services and decent living conditions to Emiratis in line with Abu Dhabi Vision 2030, said Sheikh Hamdan.

    Located 260 kilometres southwest of Abu Dhabi, Shuweihat S2 (pictured below) is the latest addition to the power and water infrastructure network. It adds 1,510 megawatts to the emirates generation capacity and produces up to 100 million imperial gallons of potable water each day.

    The late Sheikh Zayed bin Sultan Al Nahyan told us that we must not rely on oil alone as the main source of our national income, advising that we must diversify the sources of our revenue and construct economic projects that will ensure a free, stable and dignified life for the people, His Excellency Abdulla Saif Al-Nuaimi, Director General of the Abu Dhabi Water and

    uae

    TAQA plans to invest more than US$300 million in phase one. This involves drilling three production wells and the construction of a central processing facility.

    Discovered in 2011, the Atrush field is expected to provide long-term benefits to the region and the community. The agreement with the KRG will run for 25 years.

    This opportunity allows us to utilise our world-class expertise and capabilities gained through the management of complex projects around the globe, said Leo Koot, TAQAs Managing Director in Iraq. We are confident that progress achieved in our Atrush operations will provide a vital contribution to the future economy of the Kurdistan region of Iraq.

    We are delighted to be working closely with our partners in the KRG, he added.

    The Atrush partners are looking at a second development phase with another 30,000 bpd production facility.

    The eventual expected oil production capacity, in barrels per day, at the Atrush Block development in the Kurdistan region of Iraq

    4,800The total coal unloading capacity, in tonnes per hour, at TAQAs Jorf Lasfar plant in Morocco, following the acquisition of two new unloading machines

    25The length, in years, of TAQAs agreement with the Kurdistan Regional Government to develop the Atrush Block in the Kurdistan region of Iraq

    300,000The number of homes that will receive electricity and water from the Shuweihat S2 power and water plant, which is majority owned by TAQA

    100,000

    industry and beyond, it was recognised that this is the way we need to work.

    TAQA acquired the Cormorant Alpha, North Cormorant, Eider and Tern North Sea platforms in 2008, and three years later began a long-term inspection, repair and maintenance programme. TAQA has since invested more than 300 million in maintenance and upgrades across the platforms.

    In January and March of 2013, there were two hydrocarbon releases within a leg of the Cormorant Alpha platform. There was no leak into the environment, but TAQA decided to close the platform while repairs were carried out.

    Cormorant Alpha had been identified as a site for inspection before the incident, and it happened while we were starting the process, said Mr Jones. It is a critical piece of infrastructure for UK energy supply and this planned programme of work will help extend its original design life.See the Pete Jones interview on page 20.

    Electricity Authority (ADWEA) and Vice-Chairman of TAQA, said at the ceremony.

    Shuweihat S2 cost US$2.7bn to build and is majority owned by TAQA. The plant was constructed to meet the challenge of providing reliable energy and water to a population in Abu Dhabi predicted to rise to five million by 2030.

    We are pleased to be part of this partnership to create greater prosperity for the communities of Al Gharbia through the development of infrastructure and economic growth, said Carl Sheldon, Chief Executive Officer of TAQA. By investing in new power and water desalination infrastructure we are helping to ensure energy security and resilience of one of the most important engines of Abu Dhabi's growth.

    Electricity and water supplied from Shuweihat S2 will be transferred to Abu Dhabi Water and Electricity Company (ADWEC) under a 25-year purchase agreement.

    For more, see Water World on page 10.

  • taqa news industry news

    08 issue 04

    canadas new gas boomCanada is expected to go through a new energy boom. High-tech drilling techniques to extract natural gas and oil from underground shale formations in North America are changing the industry.

    The Vancouver Sun has reported that new gas resources in places such as British Columbia are expected to create jobs and revenue through the export of liquefied natural gas to Asia. Across Canada, annual gas production is expected to double by 2035 and contribute US$940 billion to the countrys GDP during that period. Export facilities have already been earmarked along the British Columbia coastline.

    There is literally shale gas everywhere in North America, said Geoff Morrison, British Columbia operations manager for the Canadian Association of Petroleum Producers. See Gas Revolution on page 26.

    uae shining example of solar energy growthThe UAE has emerged as one of the biggest solar energy markets in the Middle East after countries from the Gulf Cooperation Council (GCC) pumped more than US$155 billion into the industry. Along with Saudi Arabia, the UAE was singled out as one of the major players in a region that will generate 84 gigawatts by 2017 from solar power.

    Over the years, solar power has been acknowledged as the most promising source of renewable energy and GCC governments have demonstrated their keenness to shift from traditional energy sources to these low-cost and abundant alternatives, said Derek Burston, director of the UK-based Bowmedia, the organisers of the Gulf Sol 2013 summit at the Dubai International Exhibition Centre.

    Direct radiation in many Middle Eastern countries exceeds 6kWh per square metre

    taqaglobal.com

    twitter.com/taqaglobal

    flickr.com/photos/taqaglobal

    linkedin.com/company/taqa

    vimeo.com/channels/taqa

    find us at:

    norways lesson in economic prudenceJens Stoltenberg (above), the outgoing Norwegian Prime Minister, has told spendthrift resource-rich nations that they could learn from his countrys hard-headed approach to oil wealth. In a speech at Harvard University, Mr Stoltenberg said indebted European nations should look to Norway when it comes to economic prudence after amassing a US$747 billion sovereign wealth fund (SWF) from its energy riches.

    That way the fund lasts forever, he said. The problem in Europe with the deficits and the debt crisis is that many European countries have spent money they dont have.

    Norways SWF is the biggest in the world, and generates money from its ownership of petroleum fields and taxes on oil and gas. The country is the worlds second-largest gas exporter and the seventh-largest oil exporter.

    There are many, many other countries in the world that are facing the same kinds of challenges that we are facing: huge temporary income from natural resources, said Mr Stoltenberg. So, if there is a danger of an oil curse, Norway is really exposed to that danger. But we have managed to avoid it.

    Countries such as the UAE and Qatar have taken a similar approach and set up substantial SWFs.

    perspectives on the energy industry 09

    Coal unloaders lift Jorf Lasfar capacity Two new coal unloading machines have arrived at the Jorf Lasfar port in Morocco, marking a milestone in the expansion of the kingdoms largest power plant.

    The two unloaders, which take coal from ocean-going bulk carriers and transfer it to the conveyor belt to the plant, will increase the unloading capacity from 2,400 tonnes per hour to 4,800 tonnes per hour. It has been quite a complex operation because we had to build a new quay to support the unloaders, said Majid Iraqui, Managing Director of TAQAs Moroccan business.

    The new unloaders will be supplying extra coal to enable the Jorf Lasfar plant to raise its production capacity by 50% to 2,000 megawatts. This facility already supplies about 40% of all the electricity in Morocco, a nation of 32.6 million people.

    TAQA is investing approximately US$1.6 billion in the expansion, with two new units due to be commissioned in 2014.

    The unloaders, worth an estimated US$40 million, were supplied by Cargotec of Sweden under an engineering procurement and supply contract signed in 2011. They were installed at the end of June 2013.

    morocco

    Jaap Nauta named GVP Assurance and Internal Control Jaap Nauta has been appointed Group Vice President of Assurance and Internal Control at TAQA. Mr Nauta will join the company from PricewaterhouseCoopers (PwC) in Abu Dhabi where he has been the oil and gas expert since 2011.

    Reporting to His Excellency Salem Sultan Al-Dhaheri, Chairman of the Audit Committee, and Carl Sheldon, the Chief Executive Officer, Mr Nauta will have overall accountability for risk management across the business. He will also lead TAQAs internal audit and oversee the activity of the other group-wide assurance functions.

    uae

    china to fuel growth in global demand for oil Global demand for oil will have risen by 1.1% in 2013 to 90.26 million barrels per day (bpd), according to a US government department. The Energy Information Administration (EIA) expects the trend to continue in 2014 with developing nations fuelling a 1.3% increase to 91.43m bpd.

    The EIA has also forecast that demand for oil from nations outside of the Organisation for Economic Cooperation and Development will lead the consumption boom. Demand is likely to slip in Europe and Japan and post slim gains in the US.

    China, the worlds second-biggest oil consumer after the US, is expected to account for about 40% of global growth. Oil demand in the country was expected to rise by 4%, or 410,000 bpd, in 2013 to 10.69m bpd. An expected 4.1% rise in 2014 will boost demand by 440,000 bpd to 11.13m bpd.

    petronas plans us$35bn shale investment in canadaPetronas plans to invest US$35 billion to develop shale gas assets in Canada. The Malaysian state oil company is also looking to build a liquefied natural gas (LNG) export terminal linking the country to energy-thirsty Asian markets.

    Najib Razak, the Malaysian Prime Minister, was quoted in the media saying that the project, announced last year after Petronas bought Progress Energy, would make the Southeast Asian country the biggest foreign investor in Canada.

    There is a 30-year timeline for the US$35bn investment, Mr Najib said after holding bilateral meetings with the Canadian Prime Minister Stephen Harper.

    Petronas had previously announced that it would spend US$20bn to build two LNG trains on the west coast, according to the Reuters news agency. This includes a pipeline to be built by TransCanada from the fields in the shale-rich Montney region.

    per day, making for excellent solar potential. The Emirates Solar Industry Association (ESIA) has predicted that the key markets in the Middle East will be Saudi Arabia, Jordan and the UAE.

    The economics of switching to solar energy in the Middle East is more compelling with oil prices increasing and solar technology costs plummeting, said Marc Norman, marketing and communications director of ESIA.

    The number of gigawatts Middle East countries will generate from solar power by 2017

    US$747bnThe amount Norway has amassed in its sovereign wealth fund from the proceeds of its energy resources

    2035The year by which Canadas annual gas production is expected to double

    US$35bnThe amount Malaysian state oil company Petronas plans to invest in developing its shale gas business in Canada

    40%The percentage of global growth in oil demand in 2013 that was predicted to be accounted for by China, the worlds second-biggest oil consumer after the US

    84One of the new coal unloaders being unloaded at the Jorf Lasfar port in Morocco

  • 10 issue 04 perspectives on the energy industry 11

    Revenues from the global water industry are predicted to hit nearly half a trillion dollars by 2017, and power and utility companies are jostling for a bigger slice of the cake.

    TAQA is already one of the largest desalination companies in the world, says Ahmed Bin Abbood Al Adawi, the new head of TAQAs global water operation. So we thought why dont we expand and capture more of the market.

    International research shows the opportunities are there. According to Lucintel, a leading global management consulting and market research firm, improvements in global economic conditions, especially in emerging economies, [will] drive growth in waste water and sewage treatment markets across the globe.

    Some have too little, others too much. But no one can live without water. Ahmed Bin Abbood Al Adawi, the new head of TAQAs global water operation, talks about the future of the industry

    power and water

    Lucintels research paper, Global Water Utilities Industry 2012-2017: Trend, Profit, and Forecast Analysis, predicts that growth will reach an estimated US$432 billion within five years. But it notes that, the market is highly fragmented with a few major players, and only the companies best placed to react to the increasing investment in water infrastructure and sewage removal facilities will cash in.

    Just how TAQA has emerged as one of those best placed companies lies in its links to Abu Dhabi Water & Electricity Authority (ADWEA) and the UAE Government, says Mr Al Adawi.

    Here, historically, all power and water projects were planned through ADWEA, he explains. But in 2011 TAQA was asked to look at its water projects and assess how they would perform as an independent business stream. We were seeing US$800 million a year in revenue coming from our

    water business, which represented 43% of our total power and water revenue. So we had to ask: what do we think about water as an independent activity?

    a changing industrySince the 1980s, producing fresh water for Abu Dhabi has been about desalination.

    These plants were built alongside power stations because generating electricity also generates heat. This heat then powered technology known as Multi Stage Flash (MSF), turning seawater into tap water. Today, Abu Dhabi produces about 98% of its 880 million imperial gallons per day (MIGD) by using mainly MSF and Multiple Effect Distillation (MED).

    But the industry is changing, and it is Mr Al Adawis job to ensure TAQA is capable of meeting the many challenges coming down the pipe. Increasing urbanisation and the rapid industrial expansion outlined in the

    Abu Dhabi Economic Vision 2030 will also see water demand rise. The emirate alone will require 1,150 MIGD by 2021.

    By then, Abu Dhabi will also need 20-plus gigawatts (GW) of electricity capacity during the summer. But in the winter that demand is predicted to fall to one third of summer peak. A sensible response would be to reduce electricity capacity in the low season, but Abu Dhabi will still require the 1,150 MIGD of water. And since the desalination plants run off the power stations, where does the water come from if almost three quarters of the power needed to produce it suddenly isnt there?

    Added to that is the UAEs nuclear energy programme, which will see four reactors coming online between 2018 and 2022. Together, all these developments are forcing the emirate to move towards independent water projects.

    There is a local and regional market

    shift to independent water projects a decoupling from power generation, explains Mr Al Adawi. Most countries in the region, like the UAE, have a huge power capacity, but it serves a highly seasonal demand. And that makes it expensive and wasteful to ensure steady water production using power plant-based thermal technology. We need a way to ensure steady water production without having to generate unwanted electricity.

    new technologyNew technology, it appears, is available to provide the answer. Improvements in reverse osmosis (RO) technology an alternative desalination technique that uses specially sensitive membranes to filter seawater have now made it a cheaper alternative.

    RO can now desalinate greater quantities of seawater at much cheaper

    rates, without affecting efficiency or quality, and without the need for huge amounts of energy. Also, once freed from being linked to power stations, independent desalination plants can be sited anywhere along a countrys coast. The UAE is already looking at potential sites in Fujairah and in the Western Region.

    GCC and MENA [Middle East and North Africa] countries worry about water security, so there is a clear need for diverse locations. RO plants are simpler and easier to build and you can site them close to their end users, whereas power plants are hugely expensive. They must serve huge areas and so require a vast infrastructure of transmission lines, substations and power networks. Water is easy: to move it you just build a pipeline, says Mr Al Adawi.

    Also the water market itself is changing shape, with a new emphasis on waste-water treatment. In the past, countries did not see the need to treat waste water. It ended up being stored in septic tanks or pumped, untreated, directly into the sea. But that approach has had consequences. Across the region, the volume of waste to be stored is becoming huge, and in many sites it is leaking into the groundwater and polluting it. Pumping waste water directly into the sea is also causing huge environmental problems for coastal waters.

    As a result, lots of governments across the region are now looking to waste-water companies to eliminate their environmental

    Water is easy: to move it you just build a pipeline. Ahmed Bin Abbood Al Adawi, Head of Water, TAQA

    01 AhmedBinAbboodAlAdawi

    01

  • 12 issue 04 perspectives on the energy industry 13

    problems. They are also interested in waste-water management because proper water treatment provides useful water for irrigation.

    So that is how improving technology and the changing shape of demand have now made an independent water business viable for TAQA, adds Mr Al Adawi. We looked at the industry, and found there is a business model there.

    separate water businessThe next step has been to look at the value chains of the business and ask, where do we want to be? And then to lay down a roadmap of how to get there. The strategy that TAQA has decided on is to establish a separate water business, with a geographic reach across MENA as well as India.

    The aim will be to build the business organically and through external growth. Organic growth will come through equity stakes in future ADWEA projects locally, and in the MENA region by tendering for owner/operator projects.

    External growth will be achieved through acquiring existing plants both desalination and waste water and through the acquisition of existing companies if or when they become available.

    TAQA would like to fast-track its presence as a water player, says Mr Al Adawi. One way would be to capture market assets. We have a plant-focused strategy, and we want to be developer, owner and operator of desalination and waste-water assets, so we will be looking at opportunities in the region to acquire those assets. The idea is to become present in

    The mix of TAQA ownership and private investment already operates in eight independent power and water projects in the UAE. In terms of waste-water projects, Abu Dhabi has two major companies treating 860,000 cubic metres a day of waste water, ISTP 1 and 2. ADWEA owns 60% of the plants and foreign investors 40%. But more treatment capacity is required as Abu Dhabi continues to grow.

    This is an amazing programme that allows us to attract foreign money to our country for investment, says Mr Al Adawi. We are discussing how to transfer the waste-water assets from ADWEA to TAQA; it has been one of the major activities in 2013. The goal is to establish an independent Abu Dhabi-based water company with an in-house development and design capacity to service our growing needs, and to provide security of supply.

    freshwater

    reverseosmosis

    pre-treatment

    debrine

    Residential: 56%

    Agricultural: 3%

    Commercial: 11%

    Government: 29%

    Industrial: 1%water

    consumption(2009)

    Source: ADDC/AADC, 2009

    US

    Saud

    i Ara

    bia

    UAE

    Kuw

    ait

    Chi

    na

    Indi

    a

    Liby

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    Aust

    ralia

    Isra

    el

    Chi

    le1,000

    02,000

    3,000

    4,000

    5,000

    6,000

    7,000

    8,000

    9,000

    2018

    2017

    2016

    2015

    2014

    2013

    2012

    2011

    Source: Global Water Market 2014

    US$m

    different markets, to build the operations business, and to build the TAQA brand. The emphasis will also be on establishing the UAE as a global centre for water industry technology. As TAQAs presence in the sector grows, the skills and technical know-how it acquires will boost the companys reputation as a market leader in the industry. This will help expand the countrys industrial base, fulfilling the Economic Vision 2030.

    Abu Dhabi will be our focus for the first two to three years, says Mr Al Adawi. At present, our capacity is sufficient. We are meeting the demand. We have capacity of 900 MIGD and demand is 880 MIGD. But we need new capacity to meet projected growth in demand. By 2016-17 we need new desalination capacity equal to 160 MIGD. And for replacement of old capacity to 2030, that will require a further 800 MIGD and will cost over US$5bn. So we need to start now to expand our independent water project. There is an urgency about it.

    power-plant blueprintThe operational model for the independent water business will follow the power-plant blueprint. This involves TAQA owning a majority shareholding while private investors are invited in to run specific parts of any project, such as undertaking local maintenance.

    how desalinationworks

    potable water consumption by sector: abu dhabi, 2009

    top 10 desalination markets 2011-2018

    Residental: 56%

    Agricultural: 3%

    Commercial: 11%

    Government: 29%

    Industrial: 1%water

    consumption(2009)

    Source: ADDC/AADC, 2009

    We need new capacity to meet projected growth in demand. Ahmed Bin Abbood Al Adawi, Head of Water, TAQA

    01 & 02 InsidetheFujairah2waterandpowerplantintheUAE01

    02

  • Jim Berry, a 31-year-old cowboy from Alberta, Canada, has no car, no watch and doesnt like travelling for holidays. Unless, that is, there is a rodeo on.And there were a lot of rodeos on this

    season. I travelled halfway across America in the last two weeks, he says, relaxing at an outdoor caf after riding a bronco at the Calgary Stampede, where he picked up fifth place and US$1,500 prize money on the first day.

    Mr Berry might like to be a professional cowboy, but he has a young family to support, so there is his day job as a field

    operator for TAQA, based at Rocky Mountain House in Alberta.

    It keeps him in the saddle at an age when many professional riders would have retired, he says. After all, he has a tradition to live up to.

    in the familyHis father was a wild horse racer and his grandfather drove chuck wagons at the Calgary Stampede. Mr Berry grew up on a ranch and rode a sheep when he was just three years old. He began riding broncs at the age of 17. A year later, he was riding Novice Saddle Bronc at the Stampede, winning his first rodeo at the age of 20.

    I grew up around rodeo, says Mr Berry. My earliest memories are going to rodeos with my dad. I have pictures of me on horseback still in my diapers, and falling off was just part of growing up. You got up again, dusted yourself off and got back on. A few bruises yeah, but nothing Mother Nature cant clear up. I love the competition, the money and the freedom of rodeo, he says.

    Jim Berry was riding horses at about the same time he was walking. Now the TAQA field operator is part of North Americas colourful rodeo scene

    people

    14 issue 04 perspectives on the energy industry 15

  • the thoughts of bronco berry

    On what a cowboy isHe has to have a lot of heart and a lot of try

    On his childrenMy boy, Coy, is four and my little girl, Quin, 20 months. They both ride already, and Quin is definitely the more adventurous

    On lucky charmsI never did take to wearing lucky hats or spurs. Some people are superstitious like that but the only thing Ive ever done was to grab a piece of mane from the special horses I rode

    On travellingI travelled halfway across America in the last two weeks

    01 JimBerrywithhiswifeandtwochildren

    02 MrBerryinactionattheCalgaryStampede

    03 ReceivingtheGuyWeadickAward

    16 issue 04

    When he is not on the road, he spends time with his two young children at a ranch located two hours northwest of Calgary. His ranch-in-progress, as he describes it, is nestled in a grove of trees and surrounded by a barn and corrals he built himself. It gives him and his wife a view of the Rocky Mountains in the morning, and a whole world for his children to play in.

    My boy, Coy, is four and my little girl, Quin, 20 months, he says. They both ride already, and Quin is definitely the more adventurous. She would be out there in the corral right now. Its too early to say whether they will follow me into rodeo. I dont really mind if they do or dont, as long as theyre

    happy. But theyve certainly got used to being in the saddle.

    Even after his riding days are over, Mr Berry is planning all sorts of new roles in the rodeo, as pickup man or team rope, he says. It is too early for him to be thinking about retiring to his trophy room. He is not that kind of cowboy, with a flashy Stetson or silver spurs.

    I never did take to wearing lucky hats or spurs. Some people are superstitious like that but the only thing Ive ever done was to grab a piece of mane from the special horses I rode, he says. The ones you remember. Must have 15 to 20 pieces of mane now. Each one a memory. Some of them were real special. I still remember Zappy Delivery and Cool Alley. I only rode her once in my career. She was a famous lady. She really did everything special; she had a lot of flair, a real high kicker.

    rare honourIn his speech, and his way of looking at the world, he really lives the cowboy life. And the way he lives it has not gone unnoticed. His

    dedication to rodeo won Mr Berry a rare honour at the 2013 Stampede, when he picked up the Guy Weadick Award. Named after the founder of the Stampede, it goes to the competitor who best embodies what the cowboy stands for.

    And fitting too, for Mr Berry, as TAQA is heavily involved in backing the Calgary Stampede. The company is the main rodeo sponsor and backer of the Light Horse event, as well as the Cowboy Up Challenge, one of the Stampedes showcase events.

    The Guy Weadick Award is a symbol of the ultimate sportsmanship: showing respect to your fellow competitors, gaining trust and always pushing towards excellence, explains Ed LaFehr, President of TAQAs North American business.

    To win, a cowboy must convince the judges through his ability, appearance, showmanship, character and sportsmanship that he, above all others, best captures the spirit of the Stampede.

    Asked to define a cowboy, Mr Berry takes a deep breath. He has to have a lot of heart and a lot of try, he says. Because he has to deal with the elements of Mother Nature and things in the world that are not as fair as what civilised people deal with.

    my earliest memories are going to rodeos with my dad. i have pictures of me on horseback still in my diapers, and falling off was just part of growing up. Jim Berry, Field Operator, TAQA

    01 02

    03

    KEEP CONNECTEDStrong relationships underpin successful companies. And open communication is the best foundation for any relationship. Thats why we launched TAQAWORLD, which is distributed to our employees, partners and friends in 11 countries. In these pages, find out how we generate energy and growth for the communities in which we operate.

    Relationships are a two-way street. Tell us whats on your mind and what you want to read about as well as any other feedback.

    Email: [email protected]

  • 18 issue 04 perspectives on the energy industry 19

    The massive scale of the Bergermeer plant in the Netherlands is brought into sharp focus. From a super-sized Slugcatcher to endless webs of cabling and pipes, Europes largest open-access gas facility is a construction colossus. When it is fully operational in 2015, its capacity will run to 4.1 billion cubic metres of gas

    big picture

    01 TheSlugcatcherarrivesinAlkmaar,whereitwastransportedtoBergermeer.Thismonsterofthedeepis58metreslong,17metreswideandeightmetrestall.Itweighsawhopping550tonnes.TheSlugcatcheristhefirststepinthecleaninganddryingprocessofnaturalgas

    02 ThesemegapipesconnectthegastreatmentfacilityinBoekelermeerwiththegaswellseightkilometresaway.ThepipesrunundertheA9motorwayandthroughtheHeilooforestbeforezigzaggingthroughthecountryside

    03 Wallofsound.A10-metrehighsound

    wall,whichcutsdownthenoisefromdrilling,isdismantledthenmovedtoanewwelllocation

    04 Asteamrollerwaitsforworkerstofinishasectionoftarmacattheplantbeforemovinginadrillingrigandotherequipment

    05 Concentrationisetchedonthefacesofworkersinvolvedinadrillingoperation

    06 WorkersstandclearasthegiganticT45drillingrig,nearly55metreshighand875tonnesinweight,isloadedintoplace

    07 Almost750kilometresofwiringhasbeenlaidatGasStorageBergermeer

    Larger

    Life

    01 02

    05 06

    than

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  • 20 issue 04 perspectives on the energy industry 21

    On the face of it, you might not think running an oil company and paddling a canoe over a waterfall have much in common.Pete Jones sees it differently. White

    water kayaking is his way of, getting things in perspective, he says. Its a powerful analogue of risk and safety at work.

    And when, like Mr Jones, you run an oil company, managing risk and working safely are paramount. Especially when the energy company is TAQAs UK arm, and the oil you are dealing with is in the North Sea.

    Because anyone in the industry will tell you: it is easily one of the most challenging environments in the world. On July 1, Mr Jones took over TAQAs Aberdeen operation from Leo Koot, who now runs the Abu

    Pete Jones, the new Managing Director of TAQAs UK arm, talks about his philosophy and the challenges he faces overseeing the companys North Sea operation

    big interview

    Make it safe, Make it

    work, Make itgrow Dhabi-based energy groups business in the Kurdistan region of Iraq. new challenge Make it safe, make it work, make it grow. Thats the challenge TAQAs set me, says Mr Jones.What that means specifically is not only working to sustain existing oil reservoirs and maximise their production, but also to

    extend the life of the assets primarily the platforms. The aim is to breathe new life into them, and use them as hubs to establish new sub-sea developments and identify new exploration possibilities, says Mr Jones.

    TAQA acquired its main North Sea assets Cormorant Alpha, North Cormorant, Eider and Tern in 2008, and three years later began a long-term inspection, repair and maintenance programme.

    01 PeteJonestookoverTAQAsUKoperationsinJuly2013

    02 TAQAisintheprocessofmodernisingitsNorthSeaoperations

    01

    02

    I have discovered were a very face-to-face company and we work hard on being inclusive. Pete Jones, Managing Director, UK, TAQA

  • 22 issue 04 perspectives on the energy industry 23

    It was while that was under way that an event occurred which underlined the scale of Mr Jones challenge in the make it safe, make it work, make it grow strategy.

    safety incidentsIn January and March of 2013, there were two hydrocarbon releases within a leg of the Cormorant Alpha platform. There was no release into the environment but the incident forced the platform to close while repairs were carried out.

    As well as handling 10,000 barrels per day (bpd) of production from the South Cormorant field, the Cormorant Alpha platform is the conduit for the Brent System Pipeline. This carries approximately 90,000 bpd of oil, or about 10% of the UKs crude oil production, so what happened was significant.

    Since coming back online, TAQAs production in the UK has hit a record 70,000 bpd. That Cormorant Alpha is back up and running is a tribute to the expertise and teamwork of our North Sea workforce, says Mr Jones.

    The way the business handled the issues on Cormorant Alpha earned it a great deal of respect across the industry. It was extremely open, honest and professional. Within the industry and beyond, it was recognised that this is the way we need to work.

    And when I started looking through the companys values, I realised I could identify with all of it. Stronger together I couldnt have put it better. Thats the way you make the whole bigger than the sum of its parts.

    I saw an organisation that treats its people as people, not as numbers. It is a very personal culture. It was another of the key things that made me want to be a part of it all, he adds. It was also for the technical discipline, and its peoples attitude. I have discovered were a very face-to-face company and we work hard on being inclusive. You know if you present a good opportunity, its going to be given consideration and acted upon.

    before taqaIt is a culture he admires. Before joining TAQA, Mr Jones spent 16 years with the US oil company Marathon in a number of roles that took him from London to Houston; Libya and Angola to Wyoming. I was

    managing director of Marathon in the UK for three years, he says. It was a mid-sized operation, fairly active, but very much US-focused.

    His last year with Marathon, before joining TAQA, was spent running the Oil & Gas business in Wyoming a job that gave invaluable onshore experience. The business covered the north west of the state and a bit of Colorado, so I had to do a lot of driving, he recalls. The fields produced 35,000 to 40,000 barrels a day . . . like our Canadian operation, but smaller. A whole new set of challenges, so I have a huge respect for what TAQA has achieved there.

    The posting also suited his family wife

    Isla and children Rose, nine, Theo, six, and Axel, three. It was a very outdoor lifestyle, camping, skiing, bears but only from a distance thankfully! he says.

    But moving to his new job has not been a wrench. More like coming home, as Mr Jones is a Scot. He was born in the Highlands, in Inverness, and raised on the west coast in Fort William. After graduating with a Masters degree in Operations Research (Eng.) from the University of Birmingham, he moved back North to do research work for one of the oil industrys gurus, Professor Alex Kemp, at the University of Aberdeen.

    As for the children, they have gone back to the same school they left when Mr Jones

    stopped being MD, Marathon UK, and became regional vice president, Wyoming.

    getting to know youSince returning, he has spent a lot of time on the move. The first thing was to get a sense of the culture and people, he says. Getting round the different business sectors, getting offshore, seeing the people and the condition of the assets. It takes a lot of discipline to make Oil & Gas work, and what I have seen is a very positive and motivated workforce.

    In the Northern North Sea we have a

    current cessation of production date of 2022, but I am confident that will push out beyond 2025. We have established ourselves as one of the most capable operators in the North Sea, and in the next year to 18 months we are looking to be the leading operator in terms of safety record, costs, drilling, says Mr Jones.

    If we achieve that, we will have added significant value to TAQA to sustain our operation past 2025. If we achieve that competitive edge, it will allow us to look at other acquisitions in the North Sea.

    01

    02

    03

    01 TAQAisworkingtoextendthelifeofitsassetsespeciallytheplatforms

    02 WorkingtogetherisacorevalueatTAQA

    03 TheplannedcessationofproductiondateintheNorthernNorthSeais2022

    If we achieve that competitive edge, it will allow us to look at other acquisitions in the North Sea. Pete Jones, Managing Director, UK, TAQA

  • perspectives on the energy industry 2524 issue 04

    String sonatas and Rachmaninoff recitals embrace in a musical ritual in Elham Al-Marzouqis world. Ever since she was a young girl, notes leapt off the page and bombarded her senses in a salvo of sound.

    When Mrs Al-Marzouqi was just seven years old, she started learning the piano. More than 25 years later she is a respected member of the Dubai Chamber Orchestra as a cellist.

    My mother, Shahnaz Hashimi, owned and directed the Abu Dhabi Music Institute, which was the first of its kind and was recognised by the Ministry of Education in Abu Dhabi back in the 1980s and 1990s, recalls Mrs Al-Marzouqi, 35, an Emirati who works at TAQAs headquarters in Abu Dhabi as Legal Counsel. It was then when I started learning the piano at a very young age.

    After graduating from the International School of Choueifat in Abu Dhabi, she studied English literature and French language and literature at the University of Warwick in the UK. She later did a Master of Arts in Legal Studies and then a Masters degree in International Law at the University of Bristol.

    In 2004, Mrs Al-Marzouqi did a Legal Practice Course at the University of the West of England before embarking on a two-year training contract at a law firm in London. She qualified as an English solicitor in 2006.

    playing for pleasureDuring this period, her involvement in music was confined to the living room. I was mainly playing for pleasure, says Mrs Al-Marzouqi, whose husband, Anthony, is a British national.

    But in 2009 her musical passion took a new direction when she decided to take up the cello to fulfil a cherished ambition.

    I wanted to be part of an orchestra and I loved the sound of the cello, she says. I started taking cello lessons when I was living in Bahrain while working for Norton Rose and then later with Bahraini law firm Hatim S. Zubi & Partners. String instruments are not easy as you have to deal with issues of intonation as well as musicality, she adds.

    To turn her dream into reality, Mrs Al-Marzouqi studied the cello under the Russian violinist and cellist Elena Cherny when she moved back to the UAE in 2010 before auditioning with the Dubai Chamber Orchestra.

    Elena told me about the orchestra and I decided to try it out. I was apprehensive as many musicians were of a professional level but everyone is so down to earth and made me feel very welcome, she says. I definitely feel I have improved since playing with the

    orchestra. Counting beats in music has never been so important. You realise that intonation plays a huge part and you are forced to listen out for the other players.

    Concentration is vital, along with a rigorous practice routine. During the year, the Dubai Chamber Orchestra performs three to four concerts, which are usually recorded and shown on YouTube. The orchestra mainly plays in Dubai and the concerts are usually free, says Mrs Al-Marzouqi. Its very enjoyable.

    Inspiration is never far away. She admires musicians such as the Russian classical pianist Evgeny Kissin, who became an international sensation as a child prodigy. He is now widely acclaimed for his moving interpretation of the works of the Romantic repertoire, particularly Frdric Chopin, Sergei Rachmaninoff and Franz Liszt.

    I was fortunate enough to hear Evgeny Kissin perform several times in Britain and

    he is a prolific pianist. His rendition of Rachmaninoffs Piano Concerto No 3 is wonderful, she says.

    influential cellistsYo-Yo Ma, the famed American cellist born in Paris to Chinese parents, and the great Russian cellist Mstislav Rostropovich have also influenced her. Mas performances have enthralled concert audiences around the world as well as in Hollywood. His distinctive cello style has featured on the movie soundtracks of Seven Years in Tibet, Crouching Tiger, Hidden Dragon, Master and Commander and Memoirs of a Geisha.

    With respect to cellists, I admire Yo-Yo Ma and was lucky enough to hear him perform in Abu Dhabi, she says. The late Rostropovich is another cellist who is a heavyweight giant. Not only was he a great performer, he also had the ability to impart his knowledge to other cellists in order to enhance their performance via his masterclasses.

    Naturally, classical composers have shaped Mrs Al-Marzouqis musical outlook. The European greats such as Rachmaninoff, Bach, Beethoven and Mozart roll off her tongue with the rhythmic melody of a Brahms piano concerto in D minor.

    In terms of composers, Rachmaninoff is one of my favourites, she says. His pieces, especially his piano concertos, are beautiful but technically very difficult. I was fortunate enough to play his pieces when I studied the piano and Im planning to master his Cello Sonata in G Minor for the advanced certificate.

    There are many other composers, including Bach, who was a genius, Mozart for his operas and symphonies, and Beethoven for his symphonies, she adds.

    With music being such an important part of her life, it is remarkable that Mrs Al-Marzouqi decided to spend her working life in an office instead of a concert hall.

    I played around with the idea of being a professional musician, she says. But that would entail intense study and training, either via professional diplomas or going to a music conservatory. I am already training for advanced certificates in cello, which will ultimately pave the way towards the professional diplomas. But that is in the future.

    I started learning the piano at a very young age. Elham Al-Marzouqi, Legal Counsel, TAQA

    Elham Al-Marzouqi has a passion for music after learning the piano as a child. Now, TAQAs Legal Counsel plays the cello for the Dubai Chamber Orchestra

    people

  • 20 issue 04

    As the shale gas trend gathers pace, David Cook, Executive Officer and Head of Oil & Gas at TAQA, looks at what it means for the energy industry

    oil & gas

    The shale gas revolution is changing the energy industry landscape. Major drilling operations in North America, and particularly the US, have triggered an increase in production and a fall in domestic gas prices.

    Already countries in Europe, Asia and South America are closely watching the US situation as they consider exploration of their shale gas reserves.

    China has the largest estimated reserves of shale gas at 36.1 trillion cubic metres (TCM), according to the Energy Information Administration agency of the US Department of Energy. The US comes next at 24.4 TCM, followed by Argentina (21.9 TCM), Mexico (19.3 TCM), South Africa (13.7 TCM), Australia (11.2 TCM) and Canada (11 TCM). As the shale gas trend gathers pace, David Cook, Executive Officer and Head of Oil & Gas at TAQA (pictured), looks at what it means for the energy industry. He also talks about the role of gas in the energy mix and TAQAs North American operations.

    Can you describe how the shale gas revolution has changed the energy industry globally?

    26 issue 04 perspectives on the energy industry 27

    Revolution is the word that has been used for the new development of shale gas, as well as other unconventional resources. Less than 20 years ago, deepwater exploration and production was considered unconventional. But one of the amazing things about the energy industry is that it tends to respond to opportunities. We are constantly opening up new technical and commercial frontiers that allow us to meet new challenges and demand. In the case of shale gas and shale oil, technology has allowed us to again step up to the challenge. The timing of the shale gas revolution has been crucial. It has coincided with significant global events, and this has made it a focus of conversations for governments, investors, environmentalists and consumers. Shale gas has shifted North America towards energy self-sufficiency. But I believe we

    Argentina21.9

    Brazil6.4

    Mexico19.3

    Canada11

    US24.4

    Poland5.3

    Algeria6.5 Libya

    8.2

    SA13.7

    Australia11.2

    China36.1

    Global shale gas basinsTop reserve holders in trillion cubic metres

    Assessed basins With resource estimate Without resource estimate

    are in the early cusp of the curve. While we see huge numbers being used to describe the shale resource, it remains to be seen how these numbers will play out against demand growth, economic viability and the perceived or real effects on the environment. On the environmental point, its important to stress that the industry tends to address these issues as part of the development of all new technologies. Its hydrocarbons we produce, and its not the perfect energy source, but we will strive to make it as safe and clean as possible.

    With the North American reserves of shale gas apparently delivering such cheap energy domestically, do you see a two-tier market developing?We are seeing some of the lowest gas prices in North America on the back of growing shale production. Yet in light of a number of global events such as the Fukushima nuclear disaster in Japan and rising global demand, gas prices are high in the Asian and European markets. As advanced as we are, the world is still a big place and it is impossible to instantly transport a molecule of gas from North America to Japan. There is no Star Trek teleportation technology out there.

    Source: EIA based on Advanced Resources International Inc data, BP

  • 28 issue 04 perspectives on the energy industry 29

    The development of shale gas, and the infrastructure needed to process it and then transport it, will take time. While this price arbitrage will eventually narrow, there will always be variations across the global markets. So the question becomes one of how rapidly the market price differences will shift. The timing will depend on the pace of further shale development, and transportation options, in North America and the rest of the world.

    TAQA has a major presence in North America. Can you tell us about the companys strategy there and if you hope to develop it on the back of the shale gas boom?There are several strong reasons for TAQAs involvement in North America independent of the shale revolution. We have talked about having a diversified portfolio, so we are not just involved in one market or a single product. This provides balance and protection as prices and demands in various markets change. Being in the North American market with

    a long-term view is a great opportunity although, right now with the low prices, it is a challenging time to be there. We have seen many companies suffer because of the depressed market price of gas. This is a market that requires a long-term strategy and the stamina to stay in the game. We achieve this through our intelligent growth approach as well as smart cost controls. Part of intelligent growth for our North American business, with three million net acres of land and nearly 500 million barrels of oil equivalent (mmboe) reserves, is applying unconventional, horizontal multi-stage frac technology. This is an essential ingredient for the shale gas revolution. But it is also worth remembering that operating costs for traditional gas producers are lower than for shale gas operators. This will obviously have a beneficial impact on our business in the long term as North America moves into the liquefied natural gas (LNG) export market. To illustrate this, a number of major projects are in the works to

    develop LNG in Western Canada and ship it across the Pacific to energy-thirsty countries such as China, Japan and South Korea. In the long term, this will help rejuvenate the domestic gas market in North America.

    How does the North American strategy fit in with TAQAs global plan?Aside from being involved in a prolific market, our North American business also works across tremendous technical diversity. This helps us build our skills base, for example in subsurface expertise and new drilling technologies. Connecting these skills across the organisation helps us succeed in other operations around the world. Obviously, we would not use North America just as a training ground; we are there because its a smart piece of business. But our North American operation has let us tap into vital skills. For example, our Canadian experience has been critical to our access and appraisal in the Kurdistan region of Iraq.

    United States1. Mowry (Wyoming) Cretaceous2. Gammon (Montana) Late Cretaceous3. Bakken (North Dakota, Montana) Upper Devonian4. Excello/Mulky (Nebraska) Pennsylvanian5. New Albany (Illinois/Indiana) Devonian-Mississippian6. Antrim (Michigan) Late Devonian7. Utica (New York) Ordovician8. Marcellus (New York, Ohio, Pennsylvania, West Virginia) Devonian9. Huron (Kentucky, Virginia, West Virginia) Devonian10. Chattanooga (Alabama, Kentucky, Tennessee) Late Devonian

    11. Floyd and Conasauga/Neal (Alabama, Mississippi) Late Mississippian12. Fayetteville (Arkansas) Mississippian13. Caney and Woodford (Oklahoma, Arkansas) Mississippian/Late Devonian-Early Mississippian14. Haynesville/Bossier (Louisiana, Texas) Late Jurassic15. Woodford (Oklahoma) Late Devonian-Early Mississippian16. Pearsall (Texas) Cretaceous17. Barnett (Texas) Mississippian18. Barnett and Woodford (Texas) Mississippian/Late Devonian-Early Mississippian19. Palo Duro (Texas) Lower Pennsylvanian

    7

    912

    88

    7

    9

    16

    1

    2

    3

    14

    15

    13

    121110

    4

    5

    6

    32

    1 6

    30

    7

    854

    25 24

    23

    20

    19

    22

    21

    1817

    16

    15 12

    14

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    11

    10

    9

    2627 2829

    31

    3233

    7

    912

    88

    7

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    13

    121110

    4

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    1 6

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    26 25

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    20

    23

    22

    1918

    27

    17

    16 13

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    15

    12

    11

    10

    28 2930

    31

    3233

    20. Pierre (Colorado, New Mexico) Cretaceous21. Lewis and Mancos (Colorado, New Mexico) Late Cretaceous/Cretaceous22. Hovenweep (Colorado, Utah) Pennsylvanian23. Cane Creek (Utah) Pennsylvanian24. McClure (California) Miocene25. Monterey (California) Miocene26. Mancos (Utah) Cretaceous27. Baxter (Colorado, Utah) Late Cretaceous28. Green River (Colorado, Wyoming) Eocene29. Niobrara (Colorado) Late Cretaceous

    Geology of shale gas basins in the US, Canada and Europe

    Sources: Ziff Energy Group; Natural Gas Resource Center

    Europe1. Sweden Alum Shales (Cambrian)2. Denmark Alum Shales (Cambrian)3. Poland Paleozoic Shales4. North Germany Mesozoic Shales, Lower Saxony Basin5. Central Germany Namurian Shales6. South Germany Permocarboniferous Shales, Bodensee-Trough7. South England Weald Basin8. North England Namurian Shales, West Lancashire Sub-Basin

    9. France Mesozoic Shales, Southeast Basin10. Switzerland Lower Jurassic Shales, Fribourg, Vaud11. Austria Upper Jurassic Shales, Vienna Basin12. Hungary Cenozoic Shales, Mako Trough13. Bulgaria Mesozoic Shales, NE Bulgaria14. Ukraine Lower Carboniferous Shales, Dniepr-Donets Basin15. Turkey Silurian Shales, Dades Fm, SE Turkey16. Spain Lower Jurassic Shales, Basque-Cantabrian Basin

    Source: GFZ German Research Centre for Geosciences

    Canada30. Horton Bluff (Nova Scotia) Early Mississippian31. Horn River (Northeast British Columbia) Middle Devonian32. Duvernay (West Central Alberta) Late Devonian33. Colorado (Saskatchewan) Cretaceous

  • perspectives on the energy industry 31

    When TAQA needs a point man to help clinch a deal, Khaled Bader Al Sayari is the man it calls. The only certainty about his job is that when the opportunities arise, they are never niche

    strategic relations

    It is not TAQA policy for employees to turn up for meetings when there is still gunfire on the streets or to have rifles pointed at them by nervous soldiers when they stop to buy petrol. But when yours are the first boots on the

    ground, sometimes it cant be helped.Khaled Bader Al Sayaris role as Executive

    Vice President of Strategic Relationships and Public Affairs means he walks point for TAQA.

    Not the dealmaker, but the man who makes the deals possible. And because, in

    the global energy industry, opportunities can occur anywhere in the world, he has to move fast to places where the environment is not always stable.

    We are right at the cutting edge, says Mr Al Sayari. Everything we do is about establishing relationships and then building on them.

    To underline that point he was in Tripoli one month after the Libyan revolution in 2011. The UAE Government wanted to show support to the new Libyan administration and Tripoli wanted to talk energy. We were there to add economic

    direction to our countrys political direction; to match that relationship, says Mr Al Sayari. And while we were talking, there was still the sound of gunfire from the streets.

    business and diplomacyThe only certainty about his job is that when the opportunities arise, they are never niche, and the players are always big. Which is why, when Mr Al Sayari goes forth, his brief is not just to talk business, but also diplomacy.

    Most of TAQAs business is global and that means that most of the time Strategic Relationships and Public Affairs is dealing with governments and entities representing governments.

    Our existing portfolios in the countries where we are already established nearly all involve major infrastructure projects, so they are of particular interest to our host governments, says Mr Al Sayari. So we keep open contacts at all the levels, between the host government and TAQA and with the Government of the UAE. We make sure everyone knows what everyone else is thinking and what they are doing.

    These relationships are for the full duration of the contracts, and it is only by maintaining them, by keeping the host government close, that we can assure them that we are there to stay, and not just to take the money and run. Some of

    these contracts can run for 25 years or more, so it is all about relationships, about working in partnership.

    dedicated departmentThe job of maintaining this network began with the Abu Dhabi Water & Electricity Authoritys Special Projects (Technical) department. Then in 2011, as TAQA embarked on a new strategy, it was decided a new, dedicated department was necessary to manage the existing portfolio and to work hand in hand with the Ministry of Foreign Affairs to seek out new opportunities.

    Today, we go where our UAE passport can open investment doors for us, says Mr Al Sayari. From that relationship with the UAE Government there are many opportunities arising. The role is crucial. We do our homework before we go anywhere. We evaluate a country, its tax regime, political stability and relations with the UAE. Country risk is one of the most important factors in our investment criteria.

    This work is then fed back into strategy session meetings at the top in TAQA, where the future direction of the company is thrashed out.

    If the board sees potential, then the next step is, we visit. But first of all we start with a protocol briefing, because it can be very embarrassing if you make a gaffe in your first meeting, says Mr Al Sayari. We visit the ministers of the foreign government, then all the local companies that represent the sectors we are in.

    But even if we see economic value and it fits our overall strategy, and we get UAE and foreign government support, its not over.

    We arrange further meetings between our teams and those of the other country, always digging deeper. Last year, we visited 15 countries, covering Asia, Europe, Africa and North America, always looking for the next opportunity, he adds.

    another levelThis job has certainly proved an opportunity for Mr Al Sayari, a BSc graduate from the UAE University, who never dreamed he would one day add government and boardroom-level relations to his technical skills. I started out as an electrical engineer and now my job is more like a diplomat, he says. But that is working for TAQA you are always being taken to another level.

    The downside is that his wife and three daughters do not see enough of him. Youre not flying again? Thats what my oldest daughter, Shaikha, is always saying, says Mr Al Sayari. She is six and, like the other two, doesnt see enough of me. And I certainly miss them. But it means they get lots of presents, lots of chocolate. They like that.

    Currently, the Ministry of Foreign Affairs believes there is great potential in Africa. In Kenya, just after a terrorist attack, people were nervous, Mr Al Sayari recalls. There were soldiers everywhere, and once when we stopped at a petrol station for our driver to fill the car, we must have attracted suspicion, because the next thing we knew there were guns being pointed at us.

    But it is what we must do if we are to continue to keep opening the doors for TAQA. It is all about opening new doors with new countries, working hard to get the trust of the new governments.

    Everything we do is about establishing relationships and then building on them. Khaled Bader Al Sayari, Executive Vice President of Strategic Relationships and Public Affairs, TAQA

    Khaled Bader Al Sayari, TAQAs point man

    30 issue 04

  • 32 issue 04 perspectives on the energy industry 33

    Education is not a luxury, it is a birthright. But what happens when your child is deaf? In Ghana, TAQA has helped financially support the Sekondi School for the Deaf. And put a few smiles on the faces of some extraordinary pupils

    community

    heysitaroundwoodendeskswatchingteacherJoannaAffelseverygesture.Childrenofallagessmilewhenshepushestwofingersofherrighthandontothepalmofher

    leftone.Standingupthegirlisstandingup,MsAffelsaysassheturnsherwordsintohandsigns.

    At the Sekondi School for the Deaf, silence is interspersed with laughter. They are happy to be in school, says Ms Affel. You see them smiling and laughing when I enter the room. They want to be here they want to learn.

    Just 10 minutes drive from TAQAs Takoradi 2 Power Plant on the Southwest coast of Ghana, the school nestles down a leafy side road, protected from the outside world by rows of palm and evergreen trees.

    Inside the gates, brightly coloured sign language is daubed on the walls to remind the students that help is never far away. Its difficult for deaf children to get basic education, says Benjamin Abeku Arkorful-Otoo, Head of Human Resources at TAQAs Ghana operation.

    They think they will never amount to anything and this issue is compounded by poverty. That is why TAQA puts in the resources to help these children to do well, he adds, pointing out that the company has helped financially support the Sekondi School for the past five years.

    But while dollars and cents are important, the main currency here is love and compassion. Making the pupils feel they have a future and a place in society is just as crucial as the school curriculum. These children need a lot of care a lot of love, so they can feel accepted, says Mr Arkorful-Otoo.

    If they feel accepted, they can start to lead a normal life. If the teachers cannot show that care and love, the children can never feel accepted. I think the teachers are doing very well, as when you go to the school, you can always see the children smiling.

    At the last count, there were 293 pupils aged between four and 16 with a teaching staff of 25. On average, there are around 15 to 20 students to each class with the focus being on traditional subjects such as arithmetic and English.

    Before children are admitted for the

    BenjaminAbekuArkorful-Otoo,HeadofHumanResources,TAQA,Ghana

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    34 issue 04

    TAQA is not just playing a key role in powering Ghanas booming economy. It is also helping to educate the next generation with a scholarship programme.

    This is all part of our commitment to the local community, says Thomas Donkor, the Administration Services Manager at TAQAs Takoradi 2 power plant.

    For more than a decade now, the scholarship programme has helped students fulfil their dreams. Here, Mr Donkor talks about the early days, the selection process and future plans for the scholarship scheme.

    when did the programme start?It was started back in 2000 when the plant was run by the Swiss company ABB and the US-based CMS Energy. When TAQA took over the plant, we felt the scholarship programme was a way of helping the community in which we operate. Education is one of the building blocks of society. A well-educated workforce will help drive

    growth in the country. As the largest UAE company in Ghana, TAQA is committed to helping future generations here.

    how many pupils were involved?There were just 10 students when the programme was launched. Since then it has grown considerably. By 2007, more than 2,000 pupils had been involved in the scheme. We have three categories which are Junior High School, Senior High School, and Polytechnics or Universities. Students have to submit their grades and an application letter before being accepted for the interview stage. We take care of a third of the costs, which run to US$140 per student. This year around 300 pupils, aged between six and 24, will take part in the programme.

    can you explain how the scholarship programme works?We advertise the programme on radio for qualified students to apply from the nearby

    Shama District. The scheme is for poor but brilliant students. We then conduct a series of interviews to select the right candidates. The interviews involve representatives from the Ghana Education Authority.

    what happens after the candidates have been selected?We work across a broad range of age groups, so this depends on individual students. For the younger candidates, this means they will receive financial assistance to buy books and items of stationery. For the older students, the programme will help them find jobs as teachers, chemists and chartered accountants after finishing their university studies.

    what is the programmes future?This scholarship scheme will continue to help support brilliant students to achieve their educational goals.

    01 ApupilsigningatSekondiSchool

    02 Ahappyatmosphereprevails

    03 Signlanguageispartofdailylife

    03

    year, we assess their hearing levels and we put them on a pre-school programme, says Francis Harry Dzadze, headmaster at Sekondi School. We teach them the basic things they will need. For instance, since they cannot pronounce their ABCs orally, we teach them sign language. We use our fingers.

    But the fact that the pupils are deaf should not act as a barrier to education. Capturing their imaginations by helping them reach their potential appears engrained in the teaching philosophy at the school. Obviously, there are challenges, as Ms Affel is quick to explain.

    When I first started at Sekondi, there were different priorities to help educate the children. Making sure they understood the lessons was vital, she says. But after three weeks, I realised the students were enjoying the experience and making progress. I was so happy.

    Happiness, harmony and an overwhelming sense of achievement are evident at the school.

    You can see that the children are happy and content here, adds Ms Affel as she looks out across the playground at the end of another day. We are here to give them hope and a better future.

    The story is in the panels after TAQA invested in Chromasun, a US-based company, which develops thermal air-conditioning technology. Chromasun Micro-Concentrator solar panels have been installed at the Abu Dhabi Transmission & Despatch Company for a trial period. The dust-resistant panels, which are ideal for the Middle Easts weather conditions, will provide clean, renewable solar energy to the buildings air-conditioning units.

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