GPIC Sustainability Report - 30 Years of Excellence

Sustainability Report 2009

30 Years of Excellence

One of our walkways in the complex

ABOUT THE REPORT At GPIC we define sustainability as the capacity to endure and persevere as an organisation. We do that by renewing assets; creating and delivering quality products that meet the evolving need of societies; attracting new talents and people; maintaining a sustainable environment; and retaining the trust and support of our customers, shareholders and the communities in which we operate.

This report highlights the extensive range of activities that we carry out in our endeavour to become a RESPONSIBLE role model in the industry. We will continue challenging ourselves and stretching our targets until we have a positive impact and influence on all industrial sectors so that they become RESPONSIBLE too.

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At GPIC we preserve our environment for future generations and produce for the welfare of humanity

Kingdom of Bahrain - A leading financial and trading centre

A butterfly at GPIC garden

CONTENTS

S U S TA I N A B L E M A N A G E M E N T

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Chairman’s Message General Manager’s Message Corporate Governance Ethical Management Vision and Strategy Holistic Management Company Overview Risk Management Sustainable Management Performance

BUSINESS: CREATE VALUE

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Business Overview Urea Business Methanol Business Ammonia Business Operational Excellence Management Innovative Initiatives Technical Support Economic Performance Human Resources

S A F E T Y, H E A LT H & E N V I R O N M E N T: CORE BUSINESS VALUE

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GM’s Message on SHE Safety, Health and Environment Overview Effective SHE Management System at GPIC Environment : Sustain Nature

S O C I E T Y: R E S P E C T P E O P L E

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Corporate Social Responsibility Employees Awards and Certifications

OUR CHILDREN: OUR FUTURE

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The children of our Employees

GPIC Complex Oasis

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CHAIRMAN’S MESSAGE 2008 was an outstanding year in terms of performance for GPIC culminating in excellent results. While maintaining our main source of pride: our Safety, Health and Environmental Excellence, we continued to produce and export record volumes of quality products resulting in record profitability.

We reached new heights and were internationally recognised for our excellent and robust Safety, Health and Environment Management Systems by the Royal Society for the Prevention of Accidents (RoSPA), British Safety Council and the National Safety Council of USA culminating in winning the prestigious Robert W. Campbell Award.

Our corporate social responsibility continued to be under our focus and the management showed commitment to open and transparent business practices based on ethical values and respect for all employees, society at large, the environment and all stakeholders.

H.E. Shaikh Isa bin Ali Al Khalifa

While 2008 was an outstanding year for GPIC, there are signs that 2009 will be a difficult and challenging year because

Chairman of the Board

of the economic downturn and the global market slow down. However, we sincerely believe that GPIC with its talented and dedicated employees is fully capable of successfully meeting these challenges for the benefit of our shareholders and customers. We greatly value our shareholders and thank them for the confidence and trust they place on GPIC as we move towards our strategic goals of 2020.

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GENERAL MANAGER’S

MESSAGE

Welcome to the GPIC ‘Sustainability Report’. It gives me great pleasure to present this Report to our stakeholders, especially as they have stood by us with continuing interest and support over the years.

Our achievements over the years stands as proof of our strong belief that we have been empowered by our clients, dedicated employees and most encouragingly, our Shareholders.

Based on our business principles of profitability, social responsibility and concern for the environment, GPIC is proceeding with confidence to realise numerous goals in all spheres of business at both local and international levels. 2008 was a record year in every aspect . In terms of profitability, the Company achieved an increase in its profits for the seventh consecutive year. The net profit recorded was US$301 million by the end of

Abdulrahman Jawahery - General Manager

the year 2008, compared with US$201 million at the end of 2007, an increase of more

Record net income, realisation of strategic initiatives for growth such as start of construction

than 49%. This significant achievement reflects the plants’ safety and reliability on the

of carbon dioxide recovery plant and development of Corporate Strategic Plan and

one hand and the efficiency of both the executive management and employees on the

international recognition for Safety, Health and Environmental excellence from RoSPA, British safety council and National safety council in 2008, makes this year a highly successful

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one for GPIC both operationally and strategically.

We create value for our stakeholders by sustaining a holistic management style

other hand. It is also a demonstration of the close relationship and smooth co-ordination between the shareholders and marketers of the Company.

GPIC’s management believes that innovation and growth are essential ingredients to the

sustainability of the Company. The Company has developed its Corporate Strategic Plan that will determine the roadmap for future investments and growth and provide clear guidelines for our business decisions. With a clearly defined roadmap, all GPIC’s employees can work harmoniously towards achieving our strategic goals.

The Carbon Dioxide Recovery (CDR) plant construction is in progress since mid 2008 with the aim to cut down greenhouse gas emission and improve overall efficiency of the resources by generating additional Methanol and Urea products.

At the forefront of our social responsibility comes the safety of our employees and citizens of our Kingdom. In 2008 GPIC reached new heights in the field of Safety, Health and Environmental management. The sustained excellence was internationally recognized by Royal Society for the Prevention of Accidents (RoSPA) - UK, British Safety Council and the National Safety Council - USA, culminating in winning the 2008 R.W. Campbell (RWC) Award. This recognition of GPIC

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is a significant achievement, especially if you take into consideration that GPIC is the only organisation to have won both the prestigious awards, RWC Award and the Sir George Earle Trophy from RoSPA, UK, for excellence in Safety, Health and Environmental management. This achievement was further enhanced by winning the 2008 Chemical Industry Sector Award from RoSPA for the fifth time, for demonstrating a robust and world class safety management system. Furthermore, GPIC also won the International Safety Award from the British Safety Council in its first ever participation in the competition.

This recognition is a great honour for the company and a source of pride for the industry in the Kingdom of Bahrain.

GPIC successfully certified its management systems under the integrated management system of Publicly Available Standard (PAS99), from the British Standards Institute (BSI), to be the first company in the region to do so. GPIC also reviewed and enhanced its Process Safety Management (PMS) system and established its Fleet Management System. The company kept its focus on the pro-active approach to enhancing health and safety and accordingly our commitment to GPIC’s behavioural based safety is yielding positive and encouraging results.

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GPIC’s sustainability revolves around its triple bottom line approach: profitability, social responsibility and care for the environment

Care for the environment is the third key priority of the company. During the year, GPIC carried out several pioneering projects and programmes within and outside the complex. GPIC’s outstanding environmental management system was recognised and the company won the award of King Abdulla Bin Abdul Aziz Al-Saud – Custodian of two Holy Mosques for the Best Environmental Management System for the private sector in the Arab world for the second consecutive time.

This is undoubtedly a clear evidence that our Company pursues a strategy of sustainable development that is based upon care for the environment.

GPIC’s Responsible care ethics enable us to operate safely, profitably and with due care for the future generations. We are confident that with our one team culture and our efforts and endeavours BEYOND EXCELLENCE, supported by our shareholders, we will overcome the challenges of 2009 and continue our successful journey towards our strategic goals of 2020.

This report will provide you further insight into GPIC’s sustainability endeavours.

We hope that you find our efforts reflective of the care with which we manage our business.

GPIC Oasis

Sustainable Management Fulfilling Our Promise Convergence of trust, respect and innovation, enhanced quality of life for our customers and society, balanced consideration for the economy, environment and society, We are continuously challenging ourselves to honour these promises.

GPIC’s promise to customers, society and mankind: Enhancing – Safety, Health & Environment - Our Company pursues a strategy of sustainable development that is based upon responsible care for the environment.

Social Responsibility - Every action we take depends on our people. At the forefront of our social responsibility comes the safety of our employees and citizens of Bahrain. Social contribution has become a barometer of our company’s strength.

Profitability - Performance provides us with the opportunity to make a broader contribution to the society.

SUSTAINABLE MANAGEMENT

10 Corporate Governance 28 Company Overview

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11 Ethical Management

34 History of GPIC

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21 Vision and Strategy

38 Risk Management I

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25 Holistic Management

45 Sustainable Management Performance

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GPIC adheres to the highest standards of corporate governance to ensure shareholder rights are protected. An active Board of Directors and audit activities ensures that stakeholders’ interests are maintained.

Our management practices have their priorities set on delivering shareholder’s values, while continuing a sound financial structure and capitalising on assets efficiency

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CORPORATE GOVERNANCE

GPIC Chairman H.E. Shaikh Isa Bin Ali Al Khalifa with the Board of Directors and GPIC’s Executive Management Team

GPIC Corporate Governance GPIC’s corporate governance system is based on three fundamental components, namely – Principles, Code of Conduct and Policies. The system is based on the shareholder’s aspirations to conduct the company’s business within the acceptable international and local guidelines and standards to ensure full protection of the interest of the shareholders and various stakeholders. The Board of Directors is fully entrusted with the responsibility and custody of the corporate governance within GPIC. Objectives of the Corporate Governance at GPIC •

Optimising the financial returns for the shareholders

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Improving the performance of the company

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Contributing to the long term continuity of the company

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The basic principles of the Corporate Governance Code are: •

Transparency

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Fairness

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Accountability

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Responsibility

GPIC Board of Directors - Composition of the Board The company’s management is undertaken by a Board of nine Directors equally representing the shareholders. The Board member’s term of office is three years; and they may be reappointed for a further similar term(s). The Board of Directors elects from amongst its members, a Chairman and Deputy Chairman provided that the Chairman is a Bahraini and Deputy Chairman shall be a Kuwaiti or Saudi for a term of 3 years.

Regular Meeting

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GPIC’s corporate governance is based on three fundamental components • Principles • Code of Conduct • Policies

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Role of the Board of Directors The Board of Directors represent the Owner’s interest in operating a successful business including optimizing long term financial returns. Their roles is to:

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Oversee and provide policy guidance on the business and affairs of the Company,

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Monitor overall corporate performance and exercise business judgment to act in what each director reasonably believes to be in the best interest of GPIC and its shareholders,

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Select the senior management team, which is responsible for the day to day conduct of the company’s business,

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Provide entrepreneurial leadership to the company within a framework of prudent and effective controls which enables timely assessment and management of risks,

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Sets company’s strategic aims,

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Ensure that the necessary financial and human resources are in place for the company to meet its objectives, and

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Reviews management performance on a regular basis.

Business of the Board of Directors The Board has full power to direct and lead the company to perform all acts required for its management in accordance with its objectives. The Board may, from time to time, establish committees on a permanent or ad-hoc basis as appropriate to ensure company’s success and well being.

Special Committees Board Members visit CDR Plant

Major Project Committee: This committee is responsible for reviewing and making recommendations to the Board of Directors regarding important policy matters and essential projects that have a significant impact on GPIC. Audit, Finance and Risk Committee: This committee is responsible for assisting the Board in fulfilling its oversight

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responsibility relating to: the integrity of the company’s financial statement; the financial reporting process; the

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systems of internal accounting and financial controls; independence and performance of the external auditors; risk management processes; finance plans; pension plans; and compliance by the company with ethics policies and legal regulatory requirements.

Strategic Plans The Board has the responsibility for overseeing, understanding, reviewing and monitoring the company’s short, medium and long term strategic plans from the inception through development and execution by Management.

Financial Provisions The company’s financial year shall commence from 01 January and shall end on the 31st December of every year unless the company’s Memorandum and Article of Association provide otherwise. The Board of Directors shall take reasonable steps to be assured that the company’s financial statements and other disclosures accurately represent the company’s financial condition and results of operation to the shareholders.

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We greatly value our Shareholders

The shareholders shall appoint one or more auditors for the verification of the company’s financial performance. The auditors with respect to their authority, responsibility and conduct will be subject to the provisions of the Bahrain Commercial Law. Risks and Controls The Board is responsible for the risk and control frame work within the company. The board has the responsibility to monitor the risks to which GPIC is exposed and that the system of internal control is effective in reducing those risks to an acceptable level.

The Board therefore has to ensure that Management establishes appropriate internal controls and the Board shall regularly assure itself that the controls are functioning effectively. The audit committee will perform this role and report to the Board.

An aeriel view of GPIC

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Corporate Policies Corporate Policies

GPIC corporate policies provide a plan of action to guide decisions and achieve rational and desired outcomes. The

GPIC Corporate policies provide a plan of action to guide decisions and achieve rational and desired outcomes

GPIC Board of Directors has approved specific policies covering various aspects of its operations namely:

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Legal and Ethics Policy Accounting Policy Finance and Investment Policy Credit Card Policy Vehicle Policy Procurement Policy Inventory Management Policy Integrated Quality, Safety, Health and Environment Policy • Risk Management Policy • Information Technology Policy

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Legal and Ethics Policy

GPIC is committed to carryout its business activities in an ethical manner as per the guidelines stipulated in the subject policy. The policy highlights the importance of and compliance with business ethics and the code of conduct. It also emphasises that all legal contracts/agreements are honoured.

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Accounting Policy

GPIC is committed to maintaining its accounting systems adopting the best practices while maintaining high ethical, professional, managerial, legal and accounting standards as per the guidelines in the Accounting Policy.

The company implements its policies on the basis of well established guidelines.

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Finance and Investment Policy

GPIC is committed to carryout its financial activities as per the guidelines stipulated in the subject policy that is ethical, transparent and remunerative by optimizing the cost/return, while being risk averse.

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Credit Card Policy

GPIC pursues its Credit Card Policy that addresses issue of corporate credit cards used for business expenses.

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Vehicles Policy

The company has Vehicles Policy that details the guidelines related to leasing or buying of vehicles.

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Procurement Policy

GPIC pursues its procurement activities as per the guidelines of the subject policy. The prime objective with regards to procurement is to obtain supply of materials, equipment and services for the company at the best value, quality and in a timely manner while maintaining fairness to venders and abiding by all the applicable laws.

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Inventory Management Policy

The company is committed to pursuing its Inventory Management practices as mentioned in the subject policy.

This policy is related to establishing appropriate criteria and measures by which and effective and efficient

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stock inventory of materials is maintained and managed in a cost effective and economical manner to ensure uninterrupted and safe operation of GPIC plants. •

Integrated Quality, Safety, Health and Environment Policy

The company is committed to pursuing its core business activities as per the guidelines stipulated in the subject policy.

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Risk Management Policy

The company ensures that all the risks at the enterprise level as well as at the business process and functional level are appropriately identified, assessed, evaluated and effectively managed by following the guidelines stipulated in the subject policy.

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Information Technology (IT) Policy

GPIC maintains its IT security, confidentiality

and availability of all its IT assets and resources

by following the guidelines highlighted in the subject Information Technology Policy.

Integrated policy

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GPIC practices ethical management by ensuring stakeholder satisfaction, acting with integrity and fairness in doing business with partners and competitors, and accepting responsibility for its actions

Ethical Management is crucial to business success

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ETHICAL MANAGEMENT Ethical management is crucial to business success. GPIC’s Code of Ethics is based on the fundamental principles of honesty, trust, justice, equality, integrity and respect. These principles apply to every part of business and as employees of GPIC, we are required to embrace the values of trust, openness, team work, professionalism and determination.

At GPIC, we conduct our business in a manner that will ensure sustainable environment and social responsibility. Our ethical conduct must be an integral part of our business performance and not a voluntary additional manner.

Code of Conduct The code of conduct developed by GPIC sets the standards for corporate governance and ethical behaviour within the company which must be followed and respected by the Board of Directors, Senior Management and other employees.

Purpose The purpose of developing a GPIC Code of Conduct is to provide employees with a set of standards aiming to assist them in avoiding wrong doing and to promote honest and ethical behaviour in conducting the company’s business while at the same time laying down a process for reporting suspected violations of the code.

Scope The aim of this code is to provide a set of guidelines to all employees in the conduct of their business and professional activities and when dealing with colleagues, vendors, customers, contractors, government agencies and the public. This document serves as a reminder to all employees working at GPIC that it is important for them to uphold the highest standards of integrity and personal conduct in all matters involving their work.

Business Ethics Valuing all People Respect for Religious Beliefs: GPIC’s policy is to respect the beliefs and religious practices of people of all faiths.

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Respect for the Law: All employees are required to obey all local laws and regulations.

Employees are also required to obey the laws of other countries when traveling on business trips or training courses.

Harassment: The company provides a work environment that is pleasant, healthy, comfortable and free from intimidation, hostility or other offensive behaviour towards employees, contractors, vendors or customers.

Sexual harassment of any sort, including verbal, physical or visual is strictly prohibited.

Rights of Individual: Good Working Environment: GPIC endeavours to provide a safe, healthy, pleasant and supportive working environment for all its employees.

Employee Indemnification: GPIC shall indemnify and hold harmless each employee, whether one is a current or former employee, if in the performance of his/her duties or acting at the company’s request, he/she is made a party to any civil, criminal or administrative action brought against him/her and/or his/her company.

Equal Employment Opportunity: It is GPIC’s policy to provide equal employment opportunity for all applicants for vacancies, subject to the effective applicable rules and regulations.

Fair Treatment (Advancement, Development, and Discipline): GPIC regards its employees as its greatest assets. As such, all decisions that directly affect an employee’s recruitment status will be fair and equitable.

- Advancement – Will be on the basis of merit and performance.

- Development – is an essential aspect for all employees.

GPIC endeavours to provide all employees with an environment for improving their qualifications, abilities and skills which are compatible with their position and responsibilities.

- Disciplinary Process: The company will always be fair and equitable.

Participation: GPIC encourages all employees to be innovative and make constructive suggestions.

Quality, Safety, Health and Environment “SHE” Policy and Commitment: All employees are expected to be aware of and comply with the Quality, Safety, Health and Environment and Security

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We value people

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Living by our principles

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policies. Our goal in this regard is to achieve zero injuries and illnesses and to ensure the protection of the environment wherever we conduct our business. Furthermore, off the job safety of our employees is just as important as safety on the job.

Strict compliance with applicable SHE policies and standards is an ethical and professional value of GPIC. We aim to conduct our business in a safety, healthy and environmentally acceptable manner by using a quality based management system.

Confidentiality Information and Knowledge Management Deliberate misuse by any employee of the company’s knowledge, data or information for personal gains or for the benefit of a competitor is a serious breach of contract and shall be subjected to disciplinary action. When sharing information with those outside the company, it is imperative that prior authorization is obtained from respective supervisor or company’s management.

Request for Employee Information Any requests to release information about employees should be referred to the Human Resource Section.

Information Technology – Privacy, Security and Copyrights GPIC uses state of the art and modern information technology systems to facilitate work. In giving employees and authorised contractors access to this technology, it is expected that each person shall exercise a high degree of responsibility in its usage. The individuals should be careful not to be involved in unauthorised actions as described in the company’s IT security policy.

Confidential Information

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At GPIC employees comply to policies and

By virtue of their positions, all employees having access to company’s confidential information are expected to be

standards in an ethical and professional way.

trustworthy and to perform their duties in a confidential and honest manner. Former employees shall not release any information without prior written approval from the company.

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Good Citizenship and Social Responsibility Substance Abuse All employees working for GPIC are expected to show good citizenship and social responsibility. Possession and /or use of alcohol or misuse of prescription drugs on company premises is strictly prohibited. Possession/ use of illegal drugs is also strictly prohibited.

Social and Political Relations GPIC encourages all its employees to participate and cooperate with local authorities and with recognised and approved organisations interested in the welfare of society. However, the employees should not act as spokesperson for the company.

Ethical Business Conduct

An employee gathering event

Business Ethics GPIC is committed to conducting all its affairs in a uniformly ethical manner and pursuant to a standard of fundamental honesty and fair dealing.

This standard requires adherence to all laws, regulations and normal ethical practices that apply to business activities, including adherence to official working hours and appropriate business attire. All employees are expected to act with the utmost integrity and to report violation of laws or policies to the GPIC’s management.

Conflict of Interests Employees must avoid conflicts of interest with the company. Whenever such a situation arises the employee must handle the situation in an ethical manner.

Bribery and Corrupt Practices Corruption is any abuse of an official position for personal gain. Bribery is a form of corruption. Employees must not

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Behaving with integrity

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Business integrity means, Zero Tolerance to bribes and frauds

offer, solicit or accept a bribe in any form or shape and not permit any third parties acting on behalf of their company to do so.

Gifts, Gratuities and Entertainment Employees are prohibited from receiving any gift from anyone employed by an outside organisation, government department, or anyone else with whom GPIC has or may be in the process of developing a business relationship where the receiving of such gifts violates the regulations issued by GPIC or the laws governing the recipient.

Outside Employment GPIC employment contract clearly prohibits any employment outside the company, except for pro bono work at registered charitable organisations.

Preventing Fraud and Thefts Fraud and theft are violations of the law and of GPIC’s code of conduct.

Employees are instructed to seek advice and guidance from the Human Resources Department before engaging in an activity that could be construed as fraud or theft.

Representing or Speaking on behalf of GPIC All public relations activities and contact with the media and senior government officials must be handled only by or with prior approval of the General Manager.

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Women empowerment: women employees hold key positions in GPIC

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VISION & STRATEGY

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Grow and add value to our stakeholders

Holistic Excellence: Our vision is to transform GPIC from being a foremost petrochemical and fertilizer producer in the Arabian Gulf into a global, dynamic, world class organisation of choice, recognised for excellence.

The company’s vision has been fully translated in the company’s mission to grow and add value to the customer and stakeholders by meeting their expectations whilst producing high quality petrochemicals, managing business in a safe, environmentally friendly and socially responsible manner, optimising resource utlisation and embracing knowledge, innovation, creativity and best practices along the way.

The company’s corporate values are based on the nine fundamental principles of Excellence, Integrity and Respect, Safety, Transparency, Fairness, Professionalism, Social Responsibility and Team Work.

H. E. Dr. Abdul Hussain bin Ali Mirza, Minister of Oil and Gas Affairs and Chairman of the National Oil and Gas Authority (NOGA) with GPIC’s M.D. Mr. Yousef Al Zamel and the General Manager Mr. Abdulrahman Jawahery

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Corporate Values Excellence: • To be reliable • To be efficient and effective • To be agile • To behave safely • To be technically competent • To be a learning organisation • To continually seek improvement Professionalism • To be business-like • To be competent • To be competitive • To be customer driven • To be result and objective driven Teamwork • To do things together • To Help each other • To compliment each other • To think of others • From ‘ME’ to ‘WE’ • What can I do for others?

• How others can help?

Social Responsibility • To contribute to the society • To be accountable • To protect the environment • Sustainable development • Caring for the community Respect • To respect others • To be respected • To be diverse 24

Whatever the challenge, GPIC has a constant aim – to maintain the unique status as a distinguished producer and exporter of quality petrochemical and fertilizer products to the whole world. We will spearhead change and innovation, maintain our focus on customers, continue to grow to add value to our stakeholders in today’s demanding environment both profitably and sustainably, while planning strategically for tomorrow.

To maintain this unique status, considerable effort and investment is being exerted to upgrade major plant equipment and modernize control and management systems. Plans for expansion are well underway to either duplicate existing facilities or construct new stand-alone plants. We are pro-actively and strategically planning for tomorrow and at the same time we are exploring new business opportunities that include overseas joint ventures.

GPIC 2020 Corporate Strategic Plan looks at expansion to 2020 As part of GPIC’s policy of ensuring its continuing success and drawing up practical strategies to keep abreast of future developments, the company launched its 2020 Corporate Strategic Plan. The study envisaged laying out an expansion plan for the company over the next decade to include new investment projects in the petrochemical / fertilizer industry in the Kingdom of Bahrain and at regional and international levels.

GPIC assigned consultancy company Arthur D. Little to conduct necessary studies to draw up a future strategic plan in partnership with a group of specialists from the company. The study focused on four major topics, primarily based upon the use of natural gas as feedstock. First are the continuing efforts undertaken by National Oil and Gas Authority (NOGA) in meeting future gas requirements for upcoming generations. The remaining topics focus on the downstream manufacture of by-products derived from GPIC’s output of Ammonia, Methanol and Urea or finding

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alternatives for feedstock used in the petrochemical industry, in addition to investing outside the Kingdom of Bahrain by entering into joint ventures overseas.

Based on the study, an overall strategic plan to guide company growth and expansion until 2020 offering a road map and the mechanism to be adopted to achieve these objectives has been formulated.

Respect • To the rules, policies, procedures and people • To be compassionate • To be appreciative • To be modest Integrity & Fairness • To be equitable • To add value to customers • To provide equal opportunities • To be consistent • To be impartial • To be honest • To be trustworthy • To be ethical Transparency • To be clear • To share information • Openness • To keep people informed Creativity • To be innovative • To think ‘Outside The Box’ • To be receptive to change • To challenge the current practice • To be dynamic • To be resourceful • Entrepreneurship Safety • To minimize risk and avoid harm • To prevent occupational health issues • To care and protect the environment • To provide work-life balance • To adhere to systems and procedures

GPIC’s future expansion will be geared towards ammonia, urea and methanol

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Bahrain’s GPIC Plans an Additional Fertilizer Complex (Mr. Abdul Rahman Jawahery, General Manager, GPIC.. Interview in Chemical week (CW) magazine) Gulf Petrochemical Industries Co. (GPIC, Manama, Bahrain) plans to invest approximately $ 1 billion to build an additional fertilizer complex in Bahrain and is also in discussions with potential partners to invest outside the country, CW has learned.

GPIC is owned equally by the government of Bahrain, Sabic (K.S.A) and Petrochemical Industries Co. (Kuwait).

GPIC has completed feasibility studies and presented to its board plans to construct a world-scale fertilizer complex adjacent to the company’s existing facilities at Sitra, Abdul Rahman Jawahery, General Manager of GPIC, tells CW. Jawahery was speaking on the sidelines of the Third Annual Gulf Petrochemicals and Chemicals Association Annual Forum, held earlier this month in Dubai.

The complex will be designed to produce 2,200 MT/day of ammonia and 3,500-3,600 MT/day of urea, and is likely to come on-stream in 2013, Jawahery says. An additional methanol complex is planned but the timing and capacity of that unit will depend on allocations of gas feedstock from the Bahrain government, Jawahery says. The methanol plant will be built in the second phase of the investment program, he says. GPIC’s existing fertilizer complex has capacity to produce 400,000 MT/year of ammonia, 600,000 MT/year of urea and 400,000 MT/year of methanol.

The expansion project is a revival of plans proposed earlier by GPIC. “We have been trying to get the project going but the limiting factor has been the availability of gas”, Jawahery says. “Now, however, we are in a better situation because the government of Bahrain has taken significant steps and, for the first time in the history Bahrain, all the offshore and onshore area is available for exploration for oil and gas, and contracts have been awarded”, he says. Occidental Petroleum has taken two-thirds of Bahrain’s territorial waters for exploration and PTTI (Bangkok) has taken the remaining third, he adds.

Separately, consulting firm A.D. Little has completed a study into the possibility of expanding GPIC’s investments, including venturing outside Bahrain. “We are negotiating with various partners outside Bahrain to see whether feedstock can be made available”, Jawahery says. Saudi Arabia and Qatar are two possible locations for the expansion of GPIC’s activities, he 26

GPIC has extra land earmarked and available from the Bahrain government for the next stage of expansion

says. The company, which has been in existence for about 30 years, would not broaden its portfolio outside fertilizers and methanol “at this stage”, Jawahery says.

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HOLISTIC MANAGEMENT GPIC’s success to its growth and sustainability lies in its unique approach to holistic management and human resource development.

GPIC’s sustainability revolves around a triple bottom line approach on the principles of profitability, social responsibility and care for the environment. GPIC thrives on its one team spirit and its holistic leadership style that is interactive and works on a one team principle between Shareholders, Board of Directors, Management and staff members. To achieve its Vision of Excellence, GPIC’s Mission, Corporate Values and Strategies are aligned holistically to attain new heights.

GPIC’s holistic corporate governance drives the development of systems and processes to protect the interest of all stakeholders.

GPIC plays a ubiquitous role in defining its line of actions related to societal responsibilities in terms of donations, sponsorships, educational support, care for the environment etc.

One Team

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Our ultimate goal is to allow talented people to perform

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GPIC’s human resource development approach is based on the ‘RICH’ acronym (Respect, Involve,Care, Holistically) and its ultimate goal is to allow people with talents to perform. Holistic training and development is one of the keys to human resource development starting at the individual level and moving on towards the organisation, family, society, country, region and finally global level.

Care for the society

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Training and development

Women Empowerment

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GPIC’s management very successfully implements the principles of holistic human resource development strategy by: •

Believing and practising the One-Team Culture

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Having a holistic caring attitude towards its employees, their families, and society as a whole

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Striving towards holistic training and development starting from individual to global level

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Encouraging employees development, as it is one of the triple lines of GPIC’s approach towards sustainability

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Building excellent industrial relations with our ‘Human Labour Union’, the first labour union in Bahrain

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Involving employee families in many company events

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Exchanging experiences at local, regional and global levels

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Supporting mentoring and interaction between managers and employees

•

Using the most latest and most successful tools and models for its sustainable growth

•

Believing that innovation is the vital ingredient to sustainable business success hence numerous opportunities and programmes are available for employees in this respect

•

“

GPIC’s holistic corporate governance drives the development of systems and processes to protect the interest of stakeholders

Ensuring that the company has presence and has contribution in numerous organisations and societies locally and internationally

•

Giving recognition and awards to employees in appreciation and acknowledgement of their innovation, creativity and excellent performance

Awards and recognition

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C O M PA N Y O V E R V I E W Gulf Petrochemical Industries Company (GPIC)

“

GPIC is undoubtedly a symbol of successful cooperation between Gulf States

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Shareholders • National Oil and Gas Authority (NOGA) of Bahrain, Saudi Basic Industries Corp. (SABIC) of Saudi Arabia and Petrochemical Industries Co. (PIC) of Kuwait.

Date Incorporated • December 1979 No. of Employees • 473 Principal Place of Business • Sitra – Kingdom of Bahrain Sales 2008 • US$ 467 Million Total Assets 2008 • US$ 523 Million Net profit 2008 • US$ 301 Million

GPIC Executive Management

Standing from left to right Zuhair Tawfiqi Public Relations Manager, Fadhel Al Ansari Technical Services Manager, Jehad Taqi Marketing Manager, Ahmed Ghuloom Maintenance Manager, Adnan Al Mahmood IT & Knowledge Manager, Yasser A. Rahim Safety, Health and Environment Manager, Sitting from left to right Adel A. Malik Finance Manager, Yusuf Abdulla Deputy General Manager, Abdulrahman Jawahery General Manager, Ahmed Nuruddin Plants Operation Manager, Yusuf Fakhroo Human Resources Manager.

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Introduction: Gulf Petrochemical Industries Company (GPIC) was established in 1979 as a nucleus of cooperation among Gulf Cooperation Council Countries for the manufacture of fertilizers and petrochemicals. The joint venture is equally owned by the Government of the Kingdom of Bahrain, Saudi Basic Industries Corporation (SABIC), Kingdom of Saudi Arabia and Petrochemical Industries Company, Kuwait.

GPIC uses natural gas as a feedstock for its petrochemical complex.

Built on a 60 hectare reclaimed area at Sitra Island, the project initially consisted of two Production Plants: Ammonia and Methanol together with their Utilities. The plants were commissioned in May 1985, each with a capacity of 1,000 tonnes per day (330,000 tonnes per annum).

In 1989, their capacities were further increased to 1,200 tonnes per day (400,000 tonnes per annum).

The success of these two plants in production and marketing impelled the management to explore other feasible downstream projects.

GPIC decided to expand its operations and build a 1,700 tonnes per day (600,000 tonnes per annum) Urea Plant that was commissioned in 1998.

This plant included its own Utilities and comprehensive

marine export facilities to export the finest quality granulated Urea, worldwide.

GPIC complex aerial view

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“

As the Carbon Dioxide Recovery

The drive for the Urea Plant was to safeguard the environment, create further employment opportunities, improve the company’s financial position by both asset and revenue growth, as well as contribute to the fertilizer industries efforts to provide food to the nations of the world.

Project (CDR) is recognised as a carbon

In order to cut down greenhouse gas emission and improve overall efficiency of the resources by generating additional

emission reduction project, GPIC

methanol and urea products, GPIC is also constructing a Carbon Dioxide Recovery Project that will utilise flue gas from

signed an agreement with Abu Dhabi Future Energy Company ( MASDAR) to register the CDR project under Clean

the Methanol Reformer for the recovery of 450 tonnes per day of pure carbon dioxide (CO2). The recovered gas will be used to boost Methanol production by 120 tonnes per day (39,600 tonnes per annum) and urea production by 80 tonnes per day (26,000 tonnes per annum). The construction activities are in progress and the project is expected to complete by January 2010.

Development Mechanisn (CDM) in June 2008, to turn the emission reductions into tradable assets or “ Certified Emission Reductions” (CERs)

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Ammonia Plant

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

The company employs 473 people and the overall Bahrainisation level achieved by the end of 2008 was 83%. Training and development of the company’s employees represents a major priority for GPIC’s management.

The company has a Board of Directors comprising representatives of three shareholding states and is chaired by H. E. Shaikh Isa bin Ali AlKhalifa, Advisor to H.H. the Prime Minister for Industrial and Oil Affairs. The company’s executive management is led by the General Manager, Mr. Abdul Rahman Jawahery.

GPIC’s achievements are numerous and the company is proud to have won many significant awards. At the local level in 2002 GPIC won H. H. the Prime Minister’s Award for Excellence in Major Industries. At regional level, in 2003 GPIC won H.H. Sheikh Mohammed bin Rashid Al Maktoom Award for Outstanding Arab Enterprise and at International level, in 2005 GPIC won the prestigious Sir George Earle Trophy from Royal Society for the Prevention of Accidents (RoSPA) UK, which is awarded for the highest performance of Occupational Safety & Health Worldwide. It is notable that GPIC has become the first organisation

Methanol Plant

outside Europe and North America to be awarded with this prestigious trophy. In 2008 GPIC won the Robert W. Campbell Award for Excellence in Safety, Health and Environmental Management from the National Safety Council, USA. GPIC’s achievements cover areas of production, safety, environment and marketing.

Utilities Plant

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S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

The company’s management systems are certified in accordance with ISO-9001:2000 Quality Standard, ISO-14001 Environmental Standard and the OHSAS-18001 Occupational Health and Safety Management Systems Standard. The company has recently achieved accredition to Publicly Available Standard (PAS 99) Integrated Management System from the British Standards Institute (BSI).

GPIC is considered a role model in the protection of the environment as it is the first regional industrial company to use practical demonstration projects to verify the eco-friendliness of its operations. A fish farm, a bird sanctuary and palm tree plantations have already been established in this regard at the GPIC complex. The company has achieved another

Ammonia and Methanol Loading Facilities

34

Urea Plant

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

first in the Kingdom of Bahrain with the introduction of environmental research grants to secondary schools.

The company is a significant contributor to the national economy of Bahrain. Established with a paid up capital of BD60 Million (US $159 Million), GPIC’s cumulative profits and dividends to shareholders have exceeded one billion US dollars. The company’s activities, represented by natural gas purchases, employment and training of Bahrain nationals, utilization of local contractors, power consumption and other financial and commercial operations have injected around BD 38 Million (US $ 100 Million) annually into the national economy.

GPIC is undoubtedly a world class company and is considered as an ideal example of Gulf States Cooperation.

It is the diligence, dedication and team work of both the executive management and employees of GPIC that must be singled out as major forces that have brought about these achievements. These unique qualities of the GPIC’s workforce are the pillars on which the future of the company can be built. There is no doubt that the employees of GPIC form the golden key to the company’s future success and achievements.

“We continuously challenge ourselves and embrace innovation to evolve into a global company and achieve sustainable growth”.

The company’s business activities are influenced by many factors. Fluctuating oil prices, issues related to energy and the environment, and intense global competition create a tough backdrop for petrochemical producers. To reach sustainable growth, a company has to move ahead by continually raising competitiveness and transparency, developing the abilities to compete at the global level, cultivating an eco-friendly culture and fulfilling its social responsibilities. It should participate in diverse social, cultural and environmental initiatives, gather the opinions of internal and external stakeholders, and look for ways to advance.

Yusuf Abdulla Deputy General Manager

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HISTORY OF GPIC

1979 •

Marked an extensive cooperation between Bahrain and its Gulf Cooperation Council sisters by the formation of the Gulf Petrochemical Industries Company (GPIC) as joint venture between the Government of Bahrain, PIC Kuwait and SABIC Saudi Arabia.

1980 •

Wimpey Laboratories Ltd. (UK) were awarded a contract for the feasibility of dredging and reclamation works, to reclaim a site area of 600,000 square metres in shallow water on the eastern coast of Sitra Islands in Bahrain.

•

An agreement was signed with King Wilkinson (Intl). B.V. the Dutch office of the American Company, to provide engineering project management and construction management services to assist the company in the building

H.H. the late Amir of Bahrain Shaikh Isa Bin Salman Al Khalifa at the foundation laying ceremony of GPIC.

of the Ammonia and Methanol plants.

•

Agreement was signed for dredging and reclamation with the Danish civil engineering consultant company, Cowi Consult.

•

Agreement was signed with UHDE Gmbh, West Germany (Licensor) to provide owner and owner’s contractors with all licensor’s technical know-how and engineering services required for the design, construction and commissioning of the complex.

1981 •

Contractors prequalification documents for dredging and reclamation tender for the proposed site of the petrochemical complex were issued. From 11 bidders that submitted the tender forms and documents, four companies were chosen to participate in this tender.

•

Official inauguration ceremony under the patronage of H.H. the late Amir of Bahrain, Shaikh Isa Bin Salman AlKhalifa.

•

Agreement was signed with Van Oord, Holland, for dredging and reclamation of the site.

•

The reclamation of the site commenced. By the end of the year the total reclaimed area was 260,000 sq.m. ie.

45% of the total area.

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Auxilliary Boiler. (26-3-1984)

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

1982 •

Marked the conclusion of the main contract with Snamprogetti S.P.A. (Italy), following continuous negotiations and intensive studies and evaluations.

•

Advance completion for the dredging and reclamation of the site, followed by commencement of the main contractor’s preliminary and basic works including the erection of offices, warehouses and appointment of subcontractors some of whom had already started their job. Furthermore, the topographic survey and soil survey were completed.

1983 •

The shareholders subscribed to their full shares of the capital which was Bahraini Dinars 60 Million.

•

The main contractor Snamprogetti completed the detailed engineering of the project.

•

The sea cooling water channel was completed by the reclamation and dredging contractor and handed over to

Ammonia Plant from North West showing compressor foundation. (26-3-1984)

the company.

1984 •

The main contractor completed 12 units which included three power substations, power distribution system, seawater intake unit, two steam boiler units, water desalination unit and others which were handed over and successfully commissioned.

•

The power supply system was energized; shared between a dedicated 66KV substation of the electricity directorate and a captive gas turbine driven generator. Either system can support total power demand of the complex in the event of power failure.

•

In light of the paramount importance of training and development needs, the training center of the company was the first building to be inaugurated by H.H. Shaikh Khalifa bin Salman AlKhalifa, the Prime Minister of Bahrain.

•

Marketing agreements were finalised, one with Saudi Basic Industries Company (SABIC), Saudi Arabia, for marketing of Methanol and the other with Petrochemical Industries Company (PIC), Kuwait, for marketing of Ammonia, based on the wide experience achieved by both companies.

Erection of steam reformer on the Ammonia Plant view looking from North East. (25-2-1984)

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S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

1985 •

The first half of 1985 witnessed the completion of the construction of the complex according to plan.

•

The handing over of the project by the main contractor, was accomplished ahead of schedule and at a total cost below the estimated budget. As a result of the early handing over, the company continued its drive by successfully shortening the commissioning period and as a result, was able to move on rapidly to the stage of actual production.

•

‘Good Performance’ tests were successfully completed with the production output of Ammonia and Methanol Plants reaching their maximum capacity of 1000 tonnes of each product per day.

1986 •

This year was GPIC’s first year of full production whereby its Ammonia and Methanol plants were operating at capacity higher than the planned designed capabilities, achieving that within a short time.

•

GPIC succeeded by end of 1986 to export approximately one million tonnes of product, 54% of which was Methanol and 46% Ammonia.

1989 • Ammonia Plant

An exceptional year for GPIC in which a major debottlenecking and plants improvement project was executed in record time along with normal complex general turnaround. The work on the debottlenecking and improvement project was completed early in the year and was achieved within budget at a total cost of US $ 20.3 million.

•

This project raised the production capacity of the plant by 20% to 1,200 metric tonnes of each product per day.

1995 •

MHI was selected to construct the Urea Plant using Snamprogetti (Italy) technology and Hydro Agri International (Norway), for the Urea Granulation Unit. The technology processes from these two companies are of international repute mainly in areas of high efficiency, plant reliability, low energy consumption and environmental excellence.

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Control Room

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

•

A US$ 110 million loan facility between GPIC and consortium of local banks was signed by H.E. Shaikh Isa bin Ali Al Khalifa. This facility agreement represented 60% of the US$ 180 million overall urea project budget.

•

H.E. Shaikh Isa bin Ali Al Khalifa, accompanied by representative of GPIC’s shareholders, laid the foundation stone for the Urea Project. This ceremony signalled the start of a very challenging year for the main contractors, local subcontractors, GPIC management and employees. The time frame for completion of the project was set on a fast track schedule of just over two years, among the shortest in the world for a project of this magnitude.

1997 •

The Urea Project progressed well during the year with a number of milestone achievements, such as the initiation of commissioning the Digital Control System (DCS) and the commissioning of the training simulator.

Urea Plant Opening Ceremony 3-3-1998

All equipment and piping were installed، tested and commissioned.

•

Final commissioning of the Urea Plant commenced in December with a view of the first production in early January 1998.

1998 •

GPIC successfully started-up the new 1700 MT/day Granular Urea Plant. Full load operation was achieved within one week and the plant performance test was successfully completed in March / April 1998.

•

H.H. Shaikh Khalifa bin Salman Al Khalifa, the Prime Minister of Bahrain inaugurated the Urea project on 3-3-1998.

2007 •

TICB was selected to construct the Carbon Dioxide Recovery (CDR) Plant using MHI technology.

Urea Ship Loading

2008 •

CDR construction started in the middle of 2008 and is expected to go on line by January 2010.

Contract signing for CDR Project

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RISK MANAGEMENT Risk Management Organisations of all types and sizes face a range of risks that may affect the achievement of their objectives.

“

These objectives may relate to a range of the organisational activities, from strategic initiatives to its operations, process and projects, and be reflected in terms of societal, environmental, safety and security outcome, commercial, financial and economic measures as well as social, cultural,

GPIC is a good risk of its class!

40 40

- Marsh Ltd.

FINANCIAL RISK OPER ATIONAL RISK TECH NOLOGY RISK MARKET RISK HU MAN RE URCE RISK SO

POLITICAL RISK

ENV IRONMENTAL RISK BUSINESS RISK

political and reputation impacts.

All activities of an organisation involve risks that must be managed. The risk management process aids decision making by taking account of uncertainty and the possibility of future events or circumstances and their effects on agreed objectives.

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

GPIC’s Risk Management Overview GPIC has a sound financial position facilitating loss prevention related management systems and associated expenditure.

Comparison with fertilizer companies world wide has shown that GPIC’s operations to be world class in a number of operational performance areas.

Management systems are quality based ensuring loss prevention practices are carried out constantly.

Quality

accreditation includes ISO 9001, ISO 14001 and most recently ISO 27001. Safety and Health utilises the OSHAS 18001 management systems approach.

Despite the vintage of the original plant, equipment integrity remains at a very high standard reflecting continuing investment, preventive and predictive maintenance routines with regular complex turnarounds every 2 years.

An effective inspection activity including Risk Based Inspection (RBI), resourced by qualified personnel, ensures repairs, vessel replacement or metallurgy upgrading is exercised continuously.

Safety has a high profile and has been regularly recognized by organisations such as RoSPA , British Safety Council and the National Safety Council culminating in GPIC being awarded the Sir George Earle Trophy in 2005 and the R.W.Campbell award in 2008. A Behaviour Based Safety programme was started in 2007 and is being further strengthened and reinforced to ensure enhanced performance and control of accidents. Proactive safety measures such as reporting of ”near misses” are used to achieve the company’s objectives of zero harm.

State of the Art Control System

Fire protection and emergency response facilities are rated well above average by reinsurers. There is a well equipped full time on site fire brigade with a mutual aid agreement in place with neighbouring companies. Fire training has been restructured and expanded in recent years.

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The Methanol Plant facility includes fire proofing features. Retrofit fireproofing has been applied in a number of areas following insurance industry advice.

There have been improvements in fire and gas detection and alarm systems in recent years .

Over the years, a number of risk improvement recommendations have been made by both market and insurance industry. GPIC is always receptive to such recommendations.

As the Ammonia and Methanol plants and some of the utilities, approach the end of their original 25 year design life expectation, a review was carried out by a consultant, based on work done by GPIC, to ensure that all loss prevention aspects are being adequately addressed and updated. The Ammonia and Methanol plant life has been extended by 15 years to 2024, with Urea Plant life also adjusted consistent with this date. A Rolling 10 year Turnaround Plan was published in May 2007 following GPIC recognition of “the need for a longer term perspective keeping in mind the age of the plants� in respect of turnaround planning.

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Plant turnaround in progress.

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Mechanical integrity is addressed via shutdowns, inspection and by recommended replacement of equipment.

There are similar programmes for process control and protective instrumentation systems, fire detection and alarm.

GPIC keeps abreast of new technologies wherever practical with replacement equipment consistent with current codes and standards. In addition, networking with the shareholders and other associates provides the company access to the latest developments.

Enterprise Risk Management (ERM) GPIC’s leadership believes that every entity exists to realize value for its stakeholders. Value is created, preserved or eroded by management decisions in all activities, from setting strategy to operating the enterprise on a day to day basis.

“

Through ERM GPIC’s aim is to Safeguard the business against losses, earnings surprises and reputational damage

With these basic principles emphasizing the need of a broad based Risk Management System, GPIC implemented Enterprise Risk Management (ERM) in 2007/2008 covering all its activities. The purpose is to add to the existing system and to install a mechanism to identify key events and circumstances that have the potential to threaten achievement of the mission and strategic objectives at the organisational level and devise a formal framework to monitor and manage GPIC’s Risks.

GPIC ERM is based on the Committee of Sponsoring Organisation of the Tread Way Commission (COSO) ERM framework.

Integrated Risk Management System The GPIC Risk Management System is intended to add value to the company by contributing to the demonstrable achievement of objectives and improvement of, for example, efficiency in operations, environmental protection, health and safety, product quality, legal and regulatory compliance.

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Within GPIC, risk management is an integral part of the company’s processes. To this end, risk management is part

COSO GPIC’s ERM is based on the Committee of Sponsoring Organisation of the Tread way Commission COSO ERM Framework.

COSO was jointly sponsored by five major professional associations in the United States: • American Accounting Association • American Institute of Certified Public Accountants • Financial Executives International • Institute of Internal Auditors • National Association of Accountants.

COSO is recognized the world over for providing guidance on critical aspects of organisational governance, business ethics, internal control, enterprise risk management, fraud, and financial reporting.

of the responsibilities of management; it is not a stand alone activity but part of the main activities and processes of the company.

The Risk Management process at GPIC is an interactive process and involves risk identification, risk analysis, risk evaluation and risk treatment. The process risk management strategy addresses fundamental safety, health and environment issues in petrochemical plants. At GPIC, we conduct risk assessments before carrying out important tasks.

Process Hazard Assessment (PHA) is applied to modifications/ new construction proposals, capital projects and existing process units to identify and analyse the significance of any potential hazard and /or operational constraints that may be involved in the proposed modification, new construction, capital projects etc.

Process Risk Management Strategy The Process Risk Management Strategy addresses fundamental safety issues in petrochemical plants. GPIC work practices have been reviewed against USA based Occupational Safety and Health Administration (OSHA) Process Safety Management Standards since 1999. GPIC is OSHAS 18001:1999 system certified since 2005.

We have a well certified risk assessment system following the above mentioned international standards. At GPIC, we conduct risk assessment before carrying out important tasks and use effective tools such as Process Hazard Analysis (PHA), Hazard and Operability Review (HAZOP), Management of Change (MOC), Pre-start up Safety Reviews, etc. to ensure safety, health and environmental issues and mechanical integrity and reliability of equipment and processes are well taken care of. A well established management system is in place at GPIC which ensures that the company achieves its mission that includes “Managing our business in a safe, environmentally friendly and socially responsible manner”.

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The strict risk management regime at GPIC is implemented in order to control risk potentials in advance and optimize and enhance risk management capabilities. Through effective training, management of hazardous chemicals / materials and rigorous management of change, we are working to secure fundamental safety and prevent losses and harm.

Work Practices, Procedures and Regular Training At GPIC we have effective procedures related to safe work practices and emergency response. All maintenance jobs are carried out as per an approved permit to work system to ensure safety and controlled work.

Further, we have a comprehensive emergency response procedure to provide all employees with the required information for a swift, effective and fast response to any emergency situation.

Additionally, a chemical handbook has been prepared to provide relevant information on the hazards related to the chemicals used in the complex. These three manuals in booklet form have been provided to all GPIC employees.

The company’s emergency response capabilities are considered to be well equipped with a full time fire brigade on site with mutual aid agreements in place with neighbouring companies.

Regular emergency response based exercises are carried out internally and with the mutual aid neighbouring companies.

Audit and Inspection of Company’s Management System GPIC regularly executes internal audits and assessments on the company’s management system to help minimize

Regular Emergency Response Training

risks by advance identification of potential errors that may occur while performing tasks and to achieve management goals by improving processes. Identified issues are registered and communicated to all concerned for follow-up and to

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S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

ERM Consultant Price Water House Cooper

ensure prevention of reoccurance. All related processes are improved through preventive activities ensuring close out of the issues. Third party external auditors include British Standards Institute (BSI), Lloyds Register and DNV. Management of Insured Assets Our insurance policy is aimed at minimizing loss to our shareholders in the event of property loss. For safety risks, such as fire and explosion, our emphasis is on a proactive management and improvement measures.

Reinsurer Risk Survey Every year, a petrochemical safety expert from an overseas reinsurer conducts a risk survey of our business. The survey covers the production, process design, appropriateness of operation, emergency shutdown procedures and management of change. Through the annual survey, we are able to review our facility and management standards and carry out discussions on a wide range of related topics. The survey is used to continuously 46

identify potential dangers enabling us to make the necessary enhancements.

.

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S U S TA I N A B L E M A N A G E M E N T P E R F O R M A N C E To attain sustainable growth, a company has to move ahead with endless innovation to raise competitiveness, to develop the abilities to compete at the global level, to cultivate an eco-friendly culture and fulfill its social responsibilities. The company should gather the opinion of internal and external stakeholders and look for ways to advance sustainable management, through its openness and transparency.

Based on the declared principles of sustainable management at GPIC, the company has attained new heights in all spheres at both local and international levels.

“

“

Continued growth and responsibility to society are recognized as important values at GPIC. With that in mind, we are pursuing sustainable management while reinforcing our existing businesses

Environment is the foremost priority

Flowers in our complex

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“

Economic Performance and Profitability The company’s economic performance and profitability has grown from strength to strength and the quest to

GPIC is an example of a perfect balance between industry, environment and caring for human resources

expand the businesses is based on its sound financial performance.

- Dr. J. Tickel,

during the year 2008 and produced 10% over its budgeted production target by incorporating a significant

Bestseller Australian Author

From the onset of production in 1985, GPIC has increased its profitability year after year and paid generous dividends to its shareholders.

Year 2008 was, simply the best year that GPIC has ever had, with profitability up a massive 50% on 2007. The real key to our profitability is being reliable and open for business when the market is good. GPIC’s three production plants have been running very reliably with an outstanding on stream factor. GPIC exceeded production forecasts number of improvements to its Bahrain facilities.

Despite the turmoil in global financial markets GPIC’s managed to sustain its investment plans throughout 2008.

“By surpassing expectation we’ve delivered a fantastic return on investment from the extra money we put into the plants in 2007.We recouped all of that investment in two working months”. GPIC’s GM- Abdul Rahman Jawahery

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Dr. Tickel, Mr. Jawahery and Management Team

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Future Growth Engines GPIC management is committed to growth inspite of the challenging scenario of the natural gas situation in Bahrain. Looking to the future, GPIC will be concentrating growth on the products that are already part of its production family.

The company is already eyeing further expansion within Bahrain, and has secured from the government a land allocation which is 150% the size of the land currently occupied. However, what GPIC needs more than anything is access to competitive feed stock, and Bahrain’s resources are limited. Bahrain, over the last couple of years is working tirelessly finding and developing new gas fields. Even its territorial water is under gas and oil exploration.

GPIC is extremely hopeful that in the next couple of years it will be able to realise some of the new feed stock as

“

GPIC has implemented a carbon emission reduction project to reduce more than 100,000 tonnes of carbon dioxide equivalent at its fertilizer factory in Bahrain by 2010

it comes onstream and the company’s direction will be geared towards ammonia, urea and methanol.

Social Responsibility and Enhancing Safety & Health At the forefront of our social responsibility comes the safety of GPIC employees and that of the citizens of the Kingdom of Bahrain.

GPIC has recognised early on that the only way to compete with the giant petrochemical and fertiliser companies was to create an institution that not just competes but exceeds all standards on quality, safety, reliability and social responsibility.

It has always been part of GPIC’s ethos to manage the entire business in a manner that does not focus only on profits, but also the social responsibity factors.

CDR project contract awarded to TICB / MHI

49

“

Company’s social contributions have become an indication of its strength

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

The continuation of GPIC’S social responsibility initiatives along with the company’s unwavering commitment to ensure the welfare of its employees and their families including hosting social programmes was acknowledged when the company won the prestigious award for the Arab Corporate Social Responsibility (CSR) from the United Arab Emirates.

Care for the Environment Equal and parallel to safety, health and social responsibility is GPIC’s attention to Environmental Care.

GPIC’s process plants were designed to the most exacting environmental standards, enabling all our emissions to meet the strictest international standards even today.

GPIC considers itself a role model in the protection of the environment and was the first industrial company to use practical demonstration projects to verify the environmental credentials of its operations. A fish farm, bird sanctuary, date palm trees and herbal plantation have been established.

The company’s continuous endeavours to enhance the environmental protection has enabled it to win the Saudi Arabia Environmental Management Award for the second consecutive year in 2008.

GPIC Support Royal Bahrain Equestrian and Endurance Racing Federation. GPIC’s G.M. Mr. Abdulrahman Jawahery with H.H. Shaikh Nasser bin Hamad Al Khalifa

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GPIC wins the award for Empowering Bahraini Women. H.H. Shaikha Sabeeka bint Ibrahim Al Khalifa giving the award to GPIC’s General Manager Mr. Abdulrahman Jawahery

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Business: Business: Create Value For all Stakeholders We are committed to produce high quality products in an optimised, cost effective, safe, environmentally friendly and socially responsible way.

We are continuously challenging ourselves to honor these promises.

Grow and add value

BUSINESS: CREATE VALUE FOR ALL STAKEHOLDERS

52 Business Overview

I

59 Urea Business

71 Management Innovation Initiatives

I

I

61 Methanol Business

I

93 Technical and Maintenance Support

63 Ammonia Business I

I

65 Operational Excellence

101 Economic Performance

I

104 Human Resources

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BUSINESS OVERVIEW Bahrain has always been a very enterprising nation occupying a vital position in the Arabian Gulf.

Its strategic location in the globe, makes it very important. Today, Bahrain is a leading financial and trading centre at the crossroads between the East and the West. However, in the present global scenario, Bahrain faces tougher challenges than most of its neighbours. This calls for increased competitiveness in each sector of the nation’s economy.

Of all the sectors, the industrial sector has been making most rapid progress and making good use of the breathing space created by buoyant economic conditions to lay firm foundations for the future.

Gulf Petrochemical Industries Company (GPIC) is one of the key constituents of the industrial sector in Bahrain and plays a pivotal role in Bahrain’s drive towards the growth through the newly formed National Oil and Gas Authority (NOGA).

The

company

which

is

located at Sitra Bahrain, Urea Export Facilities

was incorporated in 1979 as a Bahraini joint stock company in the Kingdom of Bahrain with equal participation

by Government of Bahrain, PIC Kuwait and SABIC group of industries, Saudi Arabia.

GPIC is a fine example of a successful joint venture in the Gulf. The company owns and operates a petrochemical processing complex comprising of a single stream Ammonia, Methanol and Granulated Urea plant with associated utilities, offsites and Product handling facilities.

54 54

GPIC Complex

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

“Aiming to be global player by leveraging our strength in core businesses and enhanced financial position�.

The business environment is expected to present numerous hurdles: a slowdown of the global economy, foreign exchange volatility and oil price uncertainty. In such times, the future cannot be guaranteed for a company that is complacent and not responsive to change. GPIC managed to post an annual net profit exceeding $300 million.

Thanks to our reliable operations, smart marketing and suitable prices. To sustain profit, we are intending to develop new business and refine our existing businesses. GPIC is making operational excellence an integral part of its business activities. To ensure sustained profit and success, regardless of the business environment, we will develop new growth drivers, develop human resources and build an innovative corporate culture. GPIC is making steady progress toward becoming a competitive petrochemical and fertilizer company.

Ahmed Nuruddin Plants Operation Manager

The Ammonia and Methanol plants were originally designed for 1000 tonnes per day each. However, after the debottlenecking of these plants in 1989, their capacity increased to 1200 tonnes per day each. Later, in January 1998, GPIC commissioned its Urea plant having a capacity of 1700 tonnes per day. For the Ammonia and Methanol plants, Uhde GmbH, Germany was the Technology Licensor and Snamprogetti, Italy was the Engineering Contractor.

The Technology Licensor of the Urea plant was Snamprogetti but the Engineering Contractor was MHI, Japan. Urea Granulation Technology was supplied by Hydro Agri International (Norway).

55

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Subsequent to the commissioning of the Urea plant, the output of the Methanol plant dropped to 1080 tonnes per day due to the diversion of all the carbon dioxide for Urea manufacturing. Prior to the Urea plant commissioning, the Methanol plant had been utilising about 275 tonnes per day of carbon dioxide, out of the total quantity of 1275 tonnes generated as a by-product from the Ammonia plant.

The remaining carbon dioxide, approximately 1000 tonnes per day, was vented until the commissioning of the Urea plant. Therefore, commissioning of Urea, greatly helped in cutting down the emission of this greenhouse gas to the environment and significantly contributed towards the profit of the company. Due to the drop in Methanol output by about 120 tonnes per day day, GPIC decided to install a Carbon Dioxide Recovery (CDR) plant which will recover carbon dioxide from the Methanol reformer flue gas stack.

This project too, will help in minimising the greenhouse gas emission and ensure GPIC’s Urea Export Conveyor Galleries

commitment to efficient utilisation of nation’s resources. Part of the recovered carbon dioxide in CDR plant will be used to enhance Urea production also. Both Methanol and Urea plants would require certain modifications to achieve the desired increase in their output.

The project is under construction and expected to complete by first quarter 2010.

Marketing: The marketing and distribution of Ammonia and Urea fertilizer products to worldwide markets is the responsibility of PIC (Kuwait), while SABIC handles Methanol marketing, The main thrust of GPIC marketing strategy, in close partnership with our marketing partners is to place GPIC’s products in premium markets, offering the customers reliable off takes and the best quality products.

56

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

The cumulative export tonnage since first production till end of 2008 is 21.6 million tonnes, comprising 5.9 million tonnes of Ammonia, 9.4 million tonnes of Methanol and 5.6 million tonnes of Urea.

Targeted Markets: During 2008, 34%of Ammonia was exported to India while the balance was shipped to USA, Middle East and Far East. For Urea exports USA received around 36% of the total Urea and Australia took around 37% and the balance was divided among India, Thailand and South Africa. The Methanol market was much broader as GPIC exported this product to USA, Europe and Far East countries.

The company’s products have acquired a good reputation among importers not only for the good product quality but also for the concern with developing mutual trading benefits with our customers.

Urea Ship loading in progress

Such market achievements are the natural result of the long term marketing strategy adopted by the executive management in co-ordination with its shareholders from the State of Kuwait, represented by Petrochemical Industries Company (PIC) and Saudi Arabia, represented by Saudi Basic Industries Corporation (SABIC). The current international growth rate in production capacity of Ammonia, Urea and Methanol ranges between 3% and 16% annually while the growth rate in international trade for these products is around 5% annually.

The Middle East is one of the most important regions for the supply of Urea, Ammonia and Methanol and is expected to play a more important role in the next few years when the new production capacity comes on stream.

57

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

1985 - 2008

Urea Export Facilities

GPIC’s combined total sales of Ammonia, Methanol and Urea came to 1,129,000 tonnes for 2008. This total was made up of 100,200 tonnes of Ammonia, 405,800 tonnes of Methanol and 623,000 tonnes of Granular Urea, These volumes were safely exported on time, without incurring demurrage charges and without a single customer complaint.

58

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

EXPORT CHARTS UREA

AMMONIA Total =100.2 KMT

Total = 623 KMT

India 34٪ Middle East 23٪

India 34٪

Australia 34٪

Far East 21٪

USA 36٪

USA 21٪

Far East 21٪

Africa 5٪

Africa 5٪

No. of ships - 10

No. of ships - 19

METHANOL

ALL PRODUCTS

Total = 405.8 KMT

Total = 1,129 KMT

Europe 9٪ Europe 34٪

Europe 3٪

Far East 43٪ USA 45٪

Far East 26٪ USA 37٪

Australia 21٪

India 8٪

Africa 2٪

Middle East 5٪

No. of ships - 43

Middle East 3٪

No. of ships - 72 59

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

AMMONIA EXPORTS - 2008 (000 MT)

500

0

400

100 84 17

30

QTR 4

PLANNED

METHANOL EXPORTS - 2008 PLANNED

406

400

0

QTR 1

QTR 2

QTR 3 ACTUAL

100

100

99

200

105

300 103

000 METRIC TONS

500

395

(000 MT)

YTD

80

QTR 4

104

QTR 3

100

QTR 2

100

QTR 1

ACTUAL

60

QTR 3

162

139

155

177

145

172

145

100 0

QTR 2

ACTUAL

300 200

QTR 1

17

20

26

40

36

60 15

600

135

000 METRIC TONS

700

620

623

(000 MT)

80

22

UREA EXPORTS - 2008

100

21

000 METRIC TONS

120

QTR 4

PLANNED

YTD

YTD

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

UREA BUSINESS

We are continuing with our innovative activities to realise energy and cost savings and enhance productivity and raise product quality.

Urea Plant outline Design Capacity

:

1,700 tonnes/day (equivalent to

560 kta, 330 days)

Process License

Snamprogetti, Italy (Urea).

:

EngineeringContractor

Hydro fertilizer Technology (Granulation) :

Mitsubishi Heavy Industries, Ltd. (MHI), Japan

Lump Sum Turnkey.

Commissioned

1998

-

Urea Plant

The Urea plant has a capacity of 1,700 MT/day of granulated Urea. The plant was constructed by MHI, Japan and was commissioned in 1998. The Synthesis Section is based on Snamprogetti technology and the Granulation Section

UREA PRODUCTION

is based on Hydro-Agri technology.

700 600

Granular Urea is considered a new and ideal type of nitrogen fertilizer and is used throughout the world. It is the colour and contains 46% nitrogen.

Ammonia and Carbon Dioxide are needed to form Urea fertilizer. GPIC produces Urea from Ammonia and Carbon Dioxide. The resultant Urea solution is concentrated to 96% and granulated in a fluidised bed granulator. Granulated Urea can be handled in bags or as a free flowing bulk solid.

500 X 1000 MT

most effective nitrogen fertilizer for plants and it is used as a nutrient for all kinds of crops. Granular Urea is white in

400 300 200 100 0

2003

2004

2005

2006

2007

2003, 2005, 2007 are turnaround Years

2008

61

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

The main process steps are listed below: •

Ammonia stripping process characterised by a Urea Synthesis Loop Reactor operating at 188oC and 155 barg, and up to 85% conversion of CO2.

•

Recovery of residual carbamate and Ammonia downstream of the stripper operating at 20 barg and 4 barg respectively, allowing recycle of carbamate solution to the Urea Reactor by means of an ejector.

•

Urea concentration via vacuum separation at 130oC and 0.3 barg to 96 wt% purity.

•

Granulation process in which formaldehyde solution is first added to facilitate free flow, and the Urea solution sprayed at 2 barg onto granules suspended in a fluidised layer within the granulator; ambient air is used as fluidising gas at 140oC.

•

Cooled urea granules at 70oC are lifted by elevator and separated according to size; oversize granules are crushed in the roll crusher and recycled together with undersize product returning to the granulator; final product cooling to 42oC followed by transfer to storage.

62

Urea Plant

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

METHANOL BUSINESS

We enjoy reliable operations; cost competitiveness; building on our strength, to create new demand.

Methanol Plant outline Design Capacity

:

1,000 tonnes/day

Debottlenecked Capacity

:

1.200 tonnes/day (1989)

:

Uhde Gmbh, Germany

Process License

(utilising ICI Synthesis Process)

Detailed Engineering

-

Snamprogetti, Italy

Prime Contractor

:

Saipem

Start up

:

1985

GPIC operates a 1,200 MT/day Methanol Plant. The plant was commissioned in 1985 producing 1,000 MT/day of

Methanol Plant

Methanol. In 1989 the plant was revamped and production capacity was increased to 1,200 MT/day.

The main process steps are listed below: •

METHANOL PRODUCTION 420

Sulphur removal of gas feedstock to less than 0.5 ppm total sulphur by contact with nickel oxide – Molybdenum

410

oxide / Zinc oxide catalysts.

Reforming in which the natural gas and steam react over a nickel-based catalyst at 880oC and 17 barg pressure to yield a mixture of H2, CO and CO2; process heat is recovered and utilised for the generation of steam at 115 barg.

•

Process gas is compressed to 76 barg in a three stage centrifugal make-up gas (MUG) compressor, pre-heated to 230oC and converted over a copper-based catalyst to form gaseous phase Methanol; the exothermic reaction takes place in a five-bed reactor with inter-bed temperature quenches; maximum outlet temperature of 275oC

400 X 1000 MT

•

390 380 370 360 350

2003

2004

2005

2006

2007

2008

2003, 2005, 2007 are turnaround Years

63 63

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

is maintained to ensure favourable equilibrium conditions.

Reactor effluent gases are cooled to 46oC and the crude Methanol product routed to the crude intermediate storage area in preparation for purification in the distillation section.

•

Crude Methanol from the Synthesis Loop is pumped to the distillation system for reforming to the finished Methanol product; dissolved gases and light ends are removed in the topping column and “topped” Methanol flows to the refining column, where water and high alcohols are separated from the refined Methanol product (purity > 99.85 wt%); Methanol product is then condensed and transferred to the intermediate storage tanks, and from there pumped to the final product storage area.

GPIC’s Managing Director H.E. Mr. Yousef Al Zamel

The Synthesis and distillation units were modified in 1996 to produce AA Methanol grade product, which has wider applications.

Methanol, also known as Methyl alcohol, is a clear liquid with a pungent odour at ambient temperature. For many years the major use for Methanol (about 50% of all produced) was as feedstock in the production of formaldehyde. It is also used in the production of acetic acid, Methyl-Tertiary-Butyl-Ether (MTBE), as well as other chemical intermediates

64

H. E. Mr. Yousef Al Zamel inaugurating the CDR Project on 27 August 2008

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

AMMONIA BUSINESS

GPIC is a leading producer of Ammonia, thanks to the reliable, safe and efficient operation of our plants and high product quality

Ammonia Plant outline Design Capacity

:

1,000 tonnes/day

Debottlenecked Capacity

:

1.200 tonnes/day (1989)

:

Uhde Gmbh, Germany

Detailed Engineering

-

Snamprogetti, Italy

Prime Contractor

:

Saipem

Start up

:

1985

Process License

Ammonia Plant

GPIC operates a 1,200 MT/day Ammonia plant. The plant was commissioned in 1985 producing 1,000 MT/day of Ammonia. In 1989 the plant was revamped and production capacity was increased to 1,200 MT/day.

AMMONIA PRODUCTION

The main process steps are listed below: •

480

Trace sulphur impurities are removed in a one-bed, nickel Molybdenum oxide / two-bed Zinc oxide system

460

operating at 370oC. Reforming in which the natural gas and steam react over a nickel-based catalyst to yield a mixture of hydrogen (H2), Carbon mono oxide (CO) and Carbon dioxide (CO2) at 820oC. •

420 400 380

A secondary reformer operating at 1,000oC converts residual hydrocarbon; steam is generated via a waste heat

360

boiler system; process air, which is delivered via a four-stage two-barrel centrifugal compressor, is fed into the

340

secondary reformer to ensure supply of the stoichiometric N2 requirement (3:1 H2 to N2 molar ratio).

•

X 1000 MT

440

CO conversion to CO2 via a 2-stage shift converter containing an iron / chromium oxide catalyst operating at

2003

2004

2005

2006

2007

2008

2003, 2005, 2007 are turnaround Years

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S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

437oC and 222oC respectively; residual CO content is < 0.3 mole %.

•

CO2 removal utilising Benfield hot potassium carbonate absorption technology; the CO2 recovered is fed to adjacent Methanol and Urea plants.

•

Methanation in which trace CO and CO2 are converted to Methane over a nickel catalyst.

•

The synthesis gas is then compressed to 312 barg and reacts over an iron catalyst to form Ammonia in the converter, which is then condensed and routed to storage.

Ammonia (NH3) is one of the most important basic chemicals in the world and the basic compound from which nitrogenous fertilizers are made. Without a continued increase in the manufacture of Ammonia and concurrently nitrogenous fertilizer, the world’s usable land will not be capable of providing sufficient food to cope with the ever increasing world population.

State of the art control systems to ensure safe and efficient operation

Ammonia is a colourless gas at atmospheric temperature and has a pungent, penetrating odour. Ammonia is normally stored and shipped in the liquid form. Since the liquid has a fairly high vapour pressure at ordinary temperatures, high pressure containers are normally used for storage of small to intermediate quantities. For large quantities, the Ammonia is usually stored or shipped at atmospheric pressure.

“Excellent cooperation between GPIC and its shareholders” GPIC has upheld its leadership in the global market. Such achievements are the natural result of long term marketing strategy adopted by the executive management in coordination with its shareholders from SABIC and PIC. Jehad Taqi Marketing Manager

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S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

OPERATIONAL EXCELLENCE Operational Excellence In the midst of petrochemical giants in the region endowed with huge financial and oil resources, GPIC has proved to be the most efficient and cost-effective producer of petrochemicals of the highest quality. In addition, GPIC has set highest standards of reliability, on-stream factor, capacity utilisation and utilisation factor which have been recognised and acknowledged globally.

Maximum Continuous Running Days Ammonia

: 738

Methanol

:

Urea

:

941

Utilities

:

1008

931

Best practices on the road to Operational Excellence The year 2008 has been very successful for GPIC. Our proactive approach towards continual improvements in the plants right from inception, integrated with various maintenance jobs and capital projects executed up to the year 2007, have resulted in continuous and stable plant conditions and in substantially high average production rates culminating in good returns in the year 2008.

Equipment reliability and integrity remains at a very high standard reflecting continuous investment, good preventive and predictive maintenance routines, effective inspection with regular turnarounds every two years.

Furthermore, over the years we have established very effective systems and procedures that have been a major contributory factor to our operational excellence.

On-Stream Factor= Operating days divided by calendar days X100.

Utilisation Factor= Monthly production divided by operating days, divided by the design capacity X 100.

67

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Some of the best practices are as follows: Enhance Reliability:

GPIC has produced record volumes of quality products

•

Continuous investment on reliability-based equipment replacement.

•

Robust and effective inspection introducing Risk-Based Inspection (RBI) and other programs.

•

Third Party inspection of equipment under manufacture at vendor workshops.

•

Quality Control (QA/QC) – Facilitator to cross check major rotating machine jobs during turnarounds.

•

Lessons learned from other facilities being used to enhance our systems.

•

Technical inputs and advice from vendors are being seriously considered for improvements.

•

At GPIC for issues related to Safety and Reliability we always look for the best solution.

•

Effective Preventive, Predictive and Corrective Maintenance routines enhance reliability.

•

Strict adherence to operating procedures and vendors’ guidelines further enhance the reliability.

•

Effective training and refresher - courses for personnel in all disciplines enhance the operational excellence and reliability.

Operator-driven Reliability: At GPIC, like other successful petrochemical and fertilizer plants, we consider that Plants Reliability cannot be enhanced without the ownership attitude leading to operator-driven reliability. Our procedures and system support this drive.

•

Housekeeping of equipment, machines and plants in general is carried out by operators.

•

Routine checks like tube metal temperature checks of Reformer tubes by pyrometer, fugitive leaks and emissions checks with portable gas meters for flanges and glands including passing valves are carried out.

•

A productive maintenance initiative is in place since 2003. Operators carry out minor maintenance jobs like top up of lubrication oils, tightening of minor gland leaks, etc.

•

Regular testing of standby equipment is carried out to ensure their availability at all times.

Effective Communication: Regular Monitoring

68

•

Daily Operations Morning Meeting is held in Main Control Room, chaired by Plants Operation Manager and attended by 19 senior employees within the Technical Department including Managers and Superintendents. As

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

it is a cross discipline meeting, all major issues are discussed and decisions taken. Minutes of Meeting are posted on the intranet for effective follow up.

•

Shift talks are held regularly between operators and shift supervisors on topics related to technical, Safety, Health and Environment (SHE), lessons learned and other miscellaneous subjects.

•

We have well equipped libraries in all departments, periodicals and journals are circulated for information.

The Training Centre has hundreds of technical books on various topics for reference purposes. Technical and knowledge related information is available on the intranet for easy access to all PC users. Interesting sites include the Knowledge Sharing Repository, Conferences site, SHE site, Suggestions Committee site and many more.

•

Log Books in manual and electronic form are used to record and pass on information at operators and supervisory levels.

Training and Development: -

Cross discipline training, cross unit training, competency checks and refreshers take place.

-

Mock drills of upset scenarios on the plant are held regularly.

-

Operating procedures and emergency response actions are discussed with the operators on regular basis.

-

Operators are encouraged to study American Petroleum Institute (API) Modules and attend Simulator training.

-

Technical visits to neighbouring plants in the region add value to GPIC’s staff technical know-how.

-

GPIC employees regularly attend technical seminars and conferences.

-

Ongoing mentoring takes place.

Well trained operators

Audits and Controls: At GPIC we do not wait for external audits to carry out corrective measures. We have sound controls and audit systems and we ensure that the procedures, routines and schedules are being followed and targets are being met.

Training and Development

69

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Enhanced monitoring is carried out to identify problems and issues at an early stage.

Lessons Learned: All incidents, whether major or minor, even near misses are captured and analysed. Corrective measures are then suggested and implemented. The incidents are discussed to avoid future occurrence.

In Plants Operation Department an Operation Incident Data Bank is available on the intranet that covers all process related issues.

Innovation: Operator’s simulator training

GPIC

considers

innovation

as an essential ingredient to sustainability Staff

are

and

provided

growth. ample

opportunities to unleash their innovative abilities.

GPIC’s ‘Suggestion and Impprovement Program’ is one of the platforms, where operattors are encouraged to make useful suggestions.

70

Satellite Image of GPIC complex and associated export facilities

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Benchmarking surveys GPIC has participated in a number of benchmarking surveys conducted periodically by various international consultants on its Ammonia, Methanol and Urea plants. Benchmarking activities in both the region and against fertilizer operations worldwide suggest GPIC is an industry leader. Awards include Best Complex Performance – Plant Survey International (USA) in 2003, Best Methanol Plant, ICI Katalco Benchmarking (2005). In 2003, GPIC was awarded Best Arab Organisation in recognition of its Management Systems and organisation. GPIC won the Sir George Earle Trophy (RoSPA award for the most outstanding performance in Health and Safety worldwide [2005] ) followed by Robert W. Campbell award in 2008.

Plant

Operating Year

Consultant

Study Results

Worldwide / Regional

Ammonia 1994 – 1996

Plants Survey International, USA

One of the best 10 plants World wide out of 89 plants surveyed

Ammonia 1997 – 1998

Plants Survey International, USA

Amongst best 10 out of World wide 91 plants

Ammonia 2000 – 2001

Plants Survey International, USA

Ammonia & 1999 – 2001 ERAS Ltd.UK Urea

Ammonia 1996 – 1998 Samad, Saudi Arabia

Amongst best 5 out of 55 World wide selected plants Rank 1 amongst 11 plants surveyed Rank 1 (1997) Rank 2 (1996 & 1998)

GCC Region

GCC Region

Methanol

1990 – 1994

Chem Systems, UK

Rank 1 amongst 24 selected plants

World wide

Methanol

1997 – 1998

Synetix, ICI, UK

Rank 1 amongst 14 selected plants

World wide

Methanol

1999

Synetix, ICI, UK

Rank 1 amongst 19 selected plants

World wide

Methanol

2002-2004

ABB Johnson Matthey, UK

Rank 1 amongst 16 selected plants

World wide

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S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

â&#x20AC;&#x153;

Bench marking activities in both the region and against fertilizer operation worldwide suggest GPIC is an industry leader

72

Marsh, 2008

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

MANAGEMENT INNOVATIVE INITIATIVES GPIC considers innovation as one of the vital ingredients for sustainable business success and without it there can be no sustainable profitable growth. Innovation not only helps us deliver benefits to our customers, but by focusing on future needs, it also helps us to stay ahead of our competition in the long term.

Since inception, GPIC’s management has introduced several new concepts and programmes that have played a key role in its sustainable growth and development. Some of these defining developments and concepts are highlighted below: Suggestion and Improvement Programme: Enhancing employee participation through formal and informal means is an important goal that GPIC strives to achieve. The Suggestion Scheme provides all employees with an effective platform for putting forward their unique ideas that can play a role in enabling the company achieve its vision of excellence. The programme not only provides an opportunity for the staff to formally communicate with management but also assists them to unleash their creativity by allowing them to put forward their ideas.

The suggestion programme, is a very effective way of capturing ideas for improvements in all fields related to GPIC business. The objectives of this programme are: •

To empower employees and allow them to participate in the decision making process.

•

To instil a sense of ownership in employees.

•

To encourage creativity and openness.

•

To reinforce the culture of continuous improvement in all fields (safety, reliability, health, environment, employee morale, productivity and cost reduction).

•

To promote the generation of ideas.

Creative Employees

“

GPIC considers innovation as one of the vital ingredients for Sustainable Business Success 73

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Tools and Models we use: ISO 14001 ISO 9001

Management Systems GPIC utilises various business models in order to ensure the highest levels of efficiency, effectiveness, integrity and safety in the implementation of its day to day business operations. A number of different models are used specifically, aligned to the type of business application. However, a common theme of all of these models is the setting of

ERM

objectives and targets in each applicable business area, the development of business processes designed to achieve

PSM

those objectives and the monitoring of these processes in order to identify opportunities for improvement.

PAS 99 OHSAS 18000 ISO 27001

The models used are as follows: ISO 9001

:

Quality Management System

ISO 14001

:

Environmental Management System

OHSAS 18001

:

Occupational Health and Safety Management System

PART 1910.119

:

Process Safety Management of Hazardous Chemicals (PSM)

ISO 27001

:

Information Security Management System.

OSHA 29CFR

During 2008 GPIC achieved accredition to the PAS 99 Integrated Management System (IMS). This system is accredited to the following three standards: ISO 9001 Quality Management Standard, ISO 14001 Environment Management Standard, and OHSAS 18001 Occupational Health and Safety Management Standard.

The three systems are integrated through the application of PAS99 specification of common management system requirements as a framework for integration.

74

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

GPIC also implements other management systems which, while not being integrated through PAS 99, are within the IMS frame work.

A number of elements of the IMS are implemented through the GPIC intranet based integrated IT System.

The company is audited regularly, by internal and external assessors, in order to check compliance with the policy, local legislation and the requirements of management system standards.

Management systems effectiveness can be gauged via a number of awards which GPIC has won over the years at local, regional and international levels.

Within the above mentioned management systems, a number of sub-systems have been developed in order to address various specific opportunities for improvement such as:-

Enterprise Resource Planning (ERP) GPIC runs SAP Running all business processes in an integrated Enterprise Resource Planning (ERP) solution is a further milestone of our world class organisation recognised globally for excellence.

SAP is a world leading provider of business solutions software. In a record project time of seven months, the SAP system was made available to all GPIC users replacing the old main frame system. Today, the business critical processes

75

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

â&#x20AC;&#x153;

Management systems effectiveness can be gauged via a number of awards which GPIC has won over the years at local, regional and international levels

of GPIC are customised to our needs and used for day to day operations successfully.

The implementation comprises business processes in the following SAP modules :

-

Financial Accounting

-

Human Capital Management

-

Cost Controlling

-

Plant Maintenance

-

Sales and Distribution

-

Production Planning

-

Environment, Health and Safety

-

Project Management

-

Quality Management

-

Document Management System

-

Material Management

-

Workflow and Approval Management

-

Warehouse Management

GPIC is running SAP to support all business users and management in addressing todayâ&#x20AC;&#x2122;s challenges and to provide the platform for future growth and strategic planning.

Succession Planning and Talent Management Is a process of developing talent to meet the needs of the organisation now and in the future. The purpose of the Succession Planning and Management Programme is to ensure a ready supply of internal talent for key positions. It is GPICâ&#x20AC;&#x2122;s policy to help employees develop to the full extent of their potential and to the extent possible for the organisation to help them achieve realistic career goals that satisfy both individual and organisational requirements.

76

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Process Safety Management of Hazardous Chemicals (PSM) Process Safety Management (PSM) is an integral part of the company’s Integrated Management System (IMS). All the requirements of the PSM standard are embodied within the IMS and form part of our day-to-day activities. GPIC adheres to the Occupational Health and Safety Administration (OSHA) Standard, Section 1910, 119 of PSM. Although the PSM Standard applies specifically to processes which involves the storage and handling of chemicals or flammable liquids and/or gases above a specified threshold quantity, GPIC applies the principles of PSM to all its facilities. The following elements are covered at GPIC: • Employee participation • Process Safety Information • Process Hazard Analysis

“

GPIC reviewed its Process Safety Management (PSM) system and prepared a comprehensive action plan to further strengthen this system in 2009

• Operating Procedures • Contractors Management • Mechanical Integrity • Management of Change • Incident Investigation • Emergency Planning and Response • Compliance • Pre-Startup Safety Reviews • Hot Work Permit • Training

Careful supervision

77

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Pre-start up Safety Review All new facilities and plant equipment, or modification to such equipment which are significant enough to change the process safety information, are the subject of a pre-startup safety review prior to being commissioned. It is the responsibility of the relevant unit superintendent to implement a specific start-up review for any facilities which fall under this category The safety startup review will ensure the following, prior to the introduction of any hazardous chemicals into the process: Construction and equipment manufacture is in accordance with design specifications, safety, operating, maintenance and emergency procedures are in place and are adequate, a process hazard analysis has been performed, those recommendations have been resolved or implemented, and that any training requirements for employees involved in operating the process have been completed. Substantially modified facilities must also meet the requirements contained in the Management of Change section of this standard.

Mechanical Integrity Benfield Solution Cooler being replaced

GPIC ensures the continued integrity of mechanical equipment by implementing a mechanical integrity programme.

The first line of defense against equipment failure is that of operating the processes within the design limits of the equipment.

In each operating unit, the operations superintendent is responsible to develop standard operating procedures which determine that mechanical equipment is operated as designed. These procedures are based upon original design specifications, manufacturers technical information and industrial codes of practice. All such information is contained

78

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

in the Technical and Maintenance Data Books, available in the technical libraries on the complex and maintained by the Engineering Superintendent.

Testing of protective equipment such as fire water pumps, motor operated fire water valves, emergency generators etc., is undertaken within each operating unit. The duration and frequency of such tests are determined by the unit superintendent.

The second line of defense is inspection, test and preventive maintenance of all equipment related to the process which could lead to an escape of hazardous or flammable gas or liquid.

The Inspection Section maintains schedules for the inspection of all relevant equipment including pressure relief devices. The frequency of inspection is determined by the Inspection Superintendent in consultation with the unit superintendent, maintenance superintendents, and in some cases, senior management. Records of the results of all such inspections are maintained by the Inspection Superintendent.

The Instrument Maintenance Section maintains schedules for the testing of all instrument protection systems. The Instrument Superintendent determines the test frequency in consultation with the unit superintendent. Records of the

Methanol PG Cooler being replaced as part of GPICâ&#x20AC;&#x2122;s Mechanical Integrity Programme

results of all such tests and calibrations are maintained by the Instrument Superintendent.

Where possible, all instrumentation, mechanical and electrical equipment is included in a preventive maintenance programme, administered by the Planning Section and initiated by the responsible unit or maintenance superintendents.

Where such equipment cannot reasonably be tested, inspected or maintained during normal plant operations, this equipment is included in the opportunity shutdown work schedule, maintained in each operating unit and coordinated by the Maintenance Planning Section. Results of all routine preventive maintenance activities are maintained in the relevant maintenance section.

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The Safety and Security Department maintain a schedule for the testing and inspection of all emergency and fire fighting equipment in the complex. Such tests and inspections are carried out by fire and safety operators. Records of such tests and inspections are maintained in the Safety and Security Department.

Where inspection or testing activities result in the identification of deficiencies in process equipment, the repair or replacement of such equipment is carried out by suitably trained personnel, using standards and codes of practice applicable to the original equipment.

Where identified equipment deficiencies cannot be rectified immediately, as per the requirements of the preceding paragraph, the Plants Operations Manager, in consultation with other Technical Division Managers, may authorize alternative operating procedures and controls to be applied until such deficiencies are resolved. Such changes to operating procedures are authorized in writing through the Management of Change procedure by the respective Technical Division Managers prior to implementation. Records of any such changes are available with the respective operations superintendent.

Hot Work Authorisation All work executed in the complex, including hot work in process areas, lockout and confined entry is controlled by the application of the Permit to Work Procedure. This procedure is maintained by the Safety & Security Manager in consultation with the other Technical Division Managers.

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Welding in a safe way

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Management of Change (MOC) In organisations that process hazardous materials it is particularly critical to comply with safety and environmental regulations and manage change within their facilities. The purpose of MOC programme at GPIC is to ensure that effective systems exist to manage changes during design, construction and operation of a facility. Change and â&#x20AC;&#x153;Replacements Not in Kindâ&#x20AC;? governed by this element are related to process chemicals, catalyst and their packaging, process technology, process equipment, process control, utilities facilities, operation staffing / organisation and emergency response plan.

This element applies to changes that are carried out at the facilities of GPIC as stipulated above.

Changes to the emergency response provisions are covered under GPIC Quality Manuals. Management of Change (MOC) shall be applicable to all changes, permanent, temporary or emergency.

Management of change procedure covers Ammonia, Methanol, Urea, Utilities, Product Handling and Shipping, offsites, future process facilities, facilities outside the process area and GPIC Club.

Methanol reformer catalyst tubes replacement

Incident Investigation An investigation into all incidents which result in or could reasonably have resulted in a catastrophic release of hazardous chemicals is initiated within 48 hours following the incident.

The investigation is performed by a team and a report is prepared by the team at the end of investigation.

Recommendations and corrective actions arising from the investigation are promptly addressed by all concerned.

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Emergency Planning and Response Emergency planning and response, including how small releases of hazardous chemicals are handled, is covered by the application of a number of procedures and initiatives.

- Complex Emergency Procedure

- Generic Emergency Procedures

- Building Evacuation and Testing Procedure

The Safety Security Manager is responsible for the administrative control of the above procedures.

Contractors Management Application The scope of this clause applies to contractors associated directly with the operation and maintenance of plant equipment. This clause does not apply to contractors involved in janitorial work, canteen, laundry and delivery services, etc.

GPIC Responsibilities All contract services and personnel are selected through an established and documented purchasing process administered by the Materials Superintendent. This process includes a requirement for evaluation of contractors safety performance.

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Emergency response training

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The Safety & Security Manager ensures that all contract personnel working at GPIC facilities undertake a comprehensive induction course before taking up their assigned activities. This induction course informs the contracting personnel of the known potential for fire, explosion and toxic release hazards, and the applicable provisions of the complex emergency action plan.

Since all contract employees work under GPIC direct supervision, usually as part of a GPIC maintenance team, then access to process areas and the control of work activities within those areas falls under the same constraints as mentioned for GPIC employees. The unit or section supervisor is responsible to ensure contractor personnel under his control follow these regulations.

All contractor personnel, while working at GPIC, are monitored for industrial injury, health and safety. It is the duty of the concerned GPIC supervisor to report all incidents through the GPIC incident and accident investigation system, administered by the Safety & Security Manager.

Contract Employer Responsibilities All contractors employed at GPIC work under direct supervision of GPIC personnel. No subcontracting of responsibility for operation or maintenance of processes is envisioned.

All contractors and vendors working at GPIC undertake a comprehensive induction course which fulfills the requirements of the PSM standard in full. Attendance records of such induction courses are maintained by the Safety & Security Manager.

GPIC at dawn

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Compliance Audits Compliance audits are executed on each element of the standard at least every three years. Internal Audit Procedure details the manner in which these audits are planned, implemented and reported. Any findings as a result of these audits are resolved and monitored through the application of the automated NonConformance Investigation Request process.

Compliance audit reports are distributed to concerned personnel, and at least the two most recent copies for each element are maintained for future reference.

The Management Systems Coordinator is responsible for the administration of the Internal Audit Procedure and Non-Conformance Investigation Request (NIR) process.

Accident and Incident Reporting and Investigation System All accidents, incidents and near misses which occur within GPIC premises or during transport to or from 10 Years of maintained Quality Assurance Sysrem Award

GPIC by its employees, is subject to investigation. A system has been developed in order to formalise and standardise the elements of such investigations in order the root cause of the incident is identified, along with appropriate management controls aimed at prevention of reoccurrence or mitigating the effect of future occurrences.

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Risk Management GPIC addresses the risk management process through a two tiered mechanism: Enterprise Risk Management (ERM) and Business Process Risk Management.

The integrated risk management strategy at GPIC focuses on the control of risk potentials in advance and optimisation and enhancement of risk management capabilities.

Through effective training, management of hazardous chemical materials and rigorous management of change, GPIC is working to secure fundamental safety and prevent losses. The details of Risk Management Strategy at GPIC are outlined in the chapter on ‘Risk Management’.

Root Cause Failure Analysis (RCFA) Root Cause Failure Analysis (RCFA) is a structured technique for investigating undesired events.

“

GPIC has a well trained team for conducting Root cause failure analysis (RCFA)

Its purpose is to determine what happened, why it happened and how it can be prevented from happening again.

RCFA is commonly used to resolve equipment failures although the same techniques may be used to investigate accidents, address quality issues and problems involving systems or procedures.

Although the process is called Root Cause Failure Analysis, the output is not the root cause of an undesired event.

The output is an effective corrective action. However, not all problems can be solved. In these cases the RCFA process should provide a greater understanding of the issue and may provide direction for further investigation or highlight areas requiring improvement.

GPIC uses a structured system for conducting RCFA studies and has established a competent team that consists of different disciplines such as Operations, Technical Services, Safety and Security and Administration Personnel.

Reformer stack inspection by rope access technique

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This system is used for RCFA of significant events, meeting the following criteria:Safety

-

Any lost time accident or fatality. Any fire causing excessive damage

Environmental

-

Any release incurring clean up costs in excess of Bahraini Dinars 50,000.

Production

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Any individual loss or cumulative loss involving the same circumstances within a 3-

month period in excess of Bahraini Dinars 100,000.

Maintenance

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Any failure resulting in maintenance costs exceeding Bahraini Dinars 100,000.

Near miss

-

Any event with the reasonable potential of meeting the above criteria.

At the discretion of the RCFA team leader, the Root Cause Failure Analysis system may also be used to assess events which do not meet the above criteria.

Risk Based Inspection (RBI) In recent years considerable attention has been given to the application of risk management strategies to plant inspection. Referred to as Risk Based Inspection (RBI), the intention is to focus the available inspection resources in the most cost effective manner in order to improve plant safety and reliability.

RBI examines individual items of plant, identifies the potential degradation mechanism(s) and results in the development Inspection for Reliability

of a technically justified inspection plan for each item. This plan specifically addresses the degradation modes identified and describes exactly how and when to inspect each piece of equipment.

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By following the RBI methodology, the company gains a better understanding of the plant and the inspection plans may be used to support management decisions regarding safe plant operation.

Behavioural Based Safety (BBS) BBS is considered one of the cutting edge safety programmes available in the world. In this programme employees gain an increased awareness of good safety practices and these practices then become natural behaviour. This in turn ensures that the company’s activities are carried out in an optimised safety environment, thus raising productivity to a new level.

The company implemented a Behavioural Based Safety Programme (BBS), which aims to increase the awareness of employees towards best safety practices and instill these as inbuilt behaviour patterns. A total of 55 employees were trained to be BBS observers and through them it was possible to record over 30,000 behaviour observation. Root causes and corrective actions were generated to enhance behaviour. The programme is designed to be a continuous enhancement process in accordance with the international norms adopted for such initiatives.

Special Committees One of the main reasons for GPIC’s success over the past decade has been the ‘ONE TEAM’ approach to all business processes at GPIC. One of the pillars of this concept is the cross-functional committees or task teams addressing various areas or issues in the company.

GPIC management places a great deal of importance on the activities of these committees. It is important to generate enthusiasm and encourage maximum participation by all members. Employees are also encouraged to contribute to the activities of the various committees by offering suggestions or ideas to the relevant committee.

We are Unique because we think outside the box

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Executive Management Council (EMC) -

Overall planning, implementation and follow up of the companyâ&#x20AC;&#x2122;s strategies, objectives and goals.

-

Reviewing the companyâ&#x20AC;&#x2122;s mission, vision, strategic and corporate objectives and business planning.

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Responsible for all management systems relating to quality, environment, occupational health and safety, IT

security, ERM, PSM and any other standards adopted in the future.

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Responsible for developing the Annual Company Business Plan & Budget.

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Responsible to finalise the yearâ&#x20AC;&#x2122;s operating budget before presenting to the Board of Directors for approval.

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Responsible to review the implementation and status of the approved operating budget.

Strategic Business Development Committee -

Develop strategies and plans for future company expansions and growth up to 2020.

Safety, Health & Environment Council (SHEC)

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Establishes and overseas the company policies and strategies for safety, health and environmental issues in

the complex.

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Oversees PSM Implementation and Maintenance.

Board Meeting

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Safety Committee (SC) Discusses and recommends issues pertaining to safety in the complex.

Promotes safety awareness and training.

Organises and supports activities pertaining to GPIC’s SHE Week.

Health Committee (HC) Promotes and organises health awareness activities.

Manages the GPIC Anti-Smoking Programme.

Responsible for hygiene and food quality in main canteen and club canteen.

Environment Committee (EC) Manages environmental initiatives / awareness.

Manages and Energy Optimisation initiatives / studies.

Manages the greenery project in the Complex.

Plants Operation Coordination Team (POCT) •

To know more about GPIC visit www.gpic.com

Discusses and reviews key issues pertaining to reliability, safety and security of the plants.

Technical Affairs Committee (TAC) •

Reviews major technical issues and developments.

•

Steering role for Turnaround management.

•

Reviews and approves modification requests.

•

Reviews annual capital expenditure proposals.

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Training and Development Committee (TDC) •

Sets the training and development strategy and policy.

•

Supervises all training and development programmes in GPIC.

•

Responsible for recruiting of graduate engineers and monitoring their progress.

•

Manages succession plan for senior members of staff.

Management & Union High Council (MUHC) •

Discusses issues with GPIC Labour Union on strategic level.

Management Systems Audit Committee (MSAC) Manages and controls company-wide audits.

Organise and plan all internal and external audits including audits carried out by sections / departments.

Monitors, reviews and reports the progress of the audits’ recommendations, actions and follow up closeout. Verifies adequacy, appropriateness and effectiveness of close-out issues.

GPIC Labour Union

Annual Corporate Objectives Committee (ACOC) •

Establishes and monitors corporate objectives.

•

Updates the quarterly corporate objectives.

Enterprise Risk Management (ERM) Committee

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•

Establishes the system and procedures.

•

Manages and reviews the ERM implementation.

•

Promotes the system and coordinate activities among various company functions.

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Accident Investigation Committee (AIC) •

Investigates accidents / incidents of a serious or potentially serious nature that have occurred within the GPIC Complex and resulted in substantial injury(ies).

Social Activities Committee (SAC) •

Propose overall policy and management of the activities and social functions in GPIC Club and other social activities.

•

Looks after GPIC Camping activities.

Suggestion and Improvement Programme Committee (SIPC) • Promotes ideas for improvement.

• Oversees evaluation of suggestions and improvement proposals received.

• Manages the Employee of the Month and On-the-Spot Award programmes.

Housing Loan Committee (HLC) • Oversees the smooth management of the programme.

Saving Scheme Committee (SSC) • Oversees the smooth management of the programme.

Purchasing Committee (PC) • Opens offers / bids and approves the users’ recommendations.

Management Union Committee (MUC) • Discuses issues with Labour Union on routine issues.

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Inventory Optimisation Committee (IOC) • Reviews and oversees the opportunities aimed at optimisation of warehouse inventory.

Fish Farm and Bird Sanctuary Committee • Oversees the maintenance and management of the Fish Farm and Bird Sanctuary including the bird cage in the club.

Special Events and Awards Committee (SEAC) • Oversees the logistics of organising VIP functions.

• Approves the selection of various employees’ awards.

Toastmasters Club

Safety, Health & Environment Week Organising Committee (SHEWOC) • Coordinates all arrangements for the SHE Week celebrations.

Knowledge Sharing Committee (KSC) •

Nourishes and promotes information and knowledge sharing.

•

Manages knowledge capturing and publicity activities.

•

Suggest relevant external awards and international benchmarking.

Training, Development and Education Sponsorship Coordination Team •

Manages and educational sponsorship of employees’ children.

•

Follows up general employees training programmes.

Promotional and Giveaway Selecting Team

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Knowledge Sharing

•

Selects and manages the gifts / giveaway items procurement.

•

Selects and recommends annual awards giveaways.

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Toastmasters Club Committee â&#x20AC;˘ Promotes employees presentation and speech skills. â&#x20AC;˘ Encourages employees to be better public speakers.

Ladies Working Committee (LWC) - In coordination with the relevant department managers and/or committee chairmen and where applicable with the GSS, is responsible for activities, services, programmes, etc. concerning ladies, both inside and outside the company facilities.

Process Safety Management (PSM) Committee

Manages all activities related to development and implementation of PSM elements at GPIC. Pre-start up Safety Review.

Incident Investigation.

Mechanical Integrity.

Operating Procedures.

Compliance Audits.

Hot Work Permit.

Contractors.

Emergency Planning & Response.

Process Safety Information.

GPIC ladies working committee

Employee Participation.

Training.

Management of Change.

Process Hazard Assessment.

Turnaround Rolling 10 Year Plan Committee - Optimise workload and plant outage duration for each turnaround.

- Determine equipment replacement schedules for each turnaround.

- Ensures uninterrupted production by eliminating potential problems using risk based inspection, technology improvements and shared experience of similar petrochemical complexes.

- Effectively enable periodic overhauling of items covered under the Preventive Maintenance Schedule.

Urea Plant equipment replacement for reliability

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GPIC Storage Facilities Audit and Follow-up Team - Audits monthly all GPIC Storage Facilities and update the Executive management with the facilities status. The team issues its audit report to the Safety and Security Manager by end of third week of each month.

- Ensures that housekeeping issues, good keep of records; timely disposal issues, etc. are incorporated within the monthly progress report.

Root Cause Failure Analysis (RCFA) Team Carries out Root Cause Failure Analysis of significant events related to Safety, Environment, Production and Maintenance.

Material Management

â&#x20AC;&#x153;Aligning Technology with Business, enabling Knowledge, Creativity and Innovation are the essential ingredients for sustainable growth and successâ&#x20AC;?.

Endeavour to continuously improve your knowledge, help each other to share knowledge, innovate and work together effectively to put knowledge into action to make a difference.

Adnan A. Al-Mahmood Information Techonlogy & Knowledge Manager

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TECHNICAL AND MAINTENANCE SUPPORT Technical Services at GPIC

The Technical Services Department comprises, Engineering, Materials, Chemical Laboratory and Inspection Services and provides project implementation, process control, materials handling, storage and procurement, laboratory and inspection support.

A 20 year technology agreement is in place with Uhde. GPIC shares information on a regular basis with SABIC owned Methanol and Ammonia Plants in Jubail, Saudi Arabia. While no formal agreements exist, catalyst performance data is forwarded to Johnson Mathey and Topsoe each year to ensure processes operate optimally. Each year there are technology based visits from Nuove Pignone, Uhde and Johnson Mathey.

Technical Services work systems were reviewed and updated as part of the Process Safety Management (PSM) project initiated in 1999. Key elements owned by Technical Services include process safety information, process hazard analysis and management of change.

Engineering Process Engineering This section is responsible for carrying out studies to improve the efficiency of the existing plants by the use of enhanced operational procedures, appropriate chemicals, catalysts, insulating materials and heat recovery systems.

It assists Plants Operation and Maintenance Departments with problems and troubleshooting to reduce losses. The activities of this section include:

“

In the petrochemical industry where competitiveness rules, the production must be supported by a strong technical and maintenance infrastructure to enable a safe, reliable and continuous production.

• Technical audit of plant operations.

• Optimisation of plant operation and troubleshooting.

• Calculation of yields, consumption and losses for operational control.

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• Environmental surveys and reports.

• Technological reports and updates.

• Processing of modifications and new construction proposals.

• Techno-economic surveys on new processes, catalysts and chemicals.

• Economic feasibility of project proposals.

• Technical reports for insurance purposes.

• Test runs on process plants and utilities systems.

• Hazops and PHA Project Engineering: Dedicated engineers at work

This section is responsible for providing the following services:• Mechanical and civil detailed engineering of new construction and modification project proposals based on process engineering recommendations.

• Mechanical specification of equipment.

• Capital investment budget preparation in coordination with process engineering.

• Updating technical documentation.

• Monitoring of project realisation.

• Coordination with outside agencies whenever required in the execution of projects.

• Providing copies of drawings for all departments.

Electrical Engineering: This section is responsible for providing the following services:• Electrical detailed engineering for plant modifications and new construction projects based on process engineering recommendations.

Mentoring

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• Technical specifications for electrical equipment.

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• Updating electrical technical documentation.

• Design and implementation of capital budget projects related to the Electrical Section.

Instrument Engineering: This section is responsible for providing detailed engineering for plant modifications and new construction proposals related to the following areas:• Process instrumentation and control systems.

• Security systems.

• Communication systems - radio / telephones.

• Air-conditioning systems.

• Technical specifications for items related to the above.

• Coordination of capital budget project proposals related to areas stated above.

Stock Control in warehouse

• Design and implementation of capital budget projects related to the discipline.

• Updating technical documentation.

Laboratory: At GPIC, we have a well equipped Laboratory capable of doing all the required analysis related to liquid, solid and gas streams. The Laboratory is manned by qualified staff on a twenty four hours basis. The main functions are: • Performing laboratory analysis on feedstock, intermediate and final products according to an established schedule using approved test methods (e.g. ASTM) and equipment.

• Performing additional special analysis as and when required.

• Performing analysis of all waste streams and gaseous effluents.

• Performing quality tests on chemicals and raw materials.

Materials and Procurement: The Materials Section is under the responsibility of the Materials Superintendent, who reports to the Technical Services

Well Equipped Laboratory

manager, and is divided into two units: 97

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Purchasing: This unit is responsible for ordering all of the company’s requirements in terms of materials and services in accordance with established policies and procedures.

These in general, include: • Establishing a list of approved suppliers, both local and international.

• Requesting quotations.

• Evaluating quotations and recommending suppliers.

• Issuing purchase orders.

• Expediting deliveries.

Stock Control & Warehouse: Ammonia PG Cooler being shipped

This unit is responsible for establishing and controlling the company’s inventory of spares and general materials by: • Assigning inventory levels.

• Replenishing and maintaining stock levels inventory.

This unit is also responsible for the storage and issuing of inventory items and receiving all purchase materials.

Comprehensive spares are held on site, which are the subject of continuing rationalisation. SAP is used for control of stock materials. Spares include: Rotors for all major compressors and turbines, spare high pressure pumps, catalysts, etc. For some main machine items 200% critical spares are held.

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New Ammonia PG Cooler being transported

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Inspection:

The Inspection Section provides inspection services to support safe, reliable and cost effective operations.

Inspection activity is geared towards maintaining equipment integrity between turnarounds. Inspection philosophy follows international standards with respect to pipelines and pressure vessels with some additional requirements set by Bahrain legislation. Inspection is both on and off line.

Risk based inspection (RBI) has been used since 2005, a cross-discipline operation, maintenance and inspection team develops the risk assessment. Scheduling of inspection activity is via a software package.

Planning is on the basis of turnaround access and operations criticality.

GPIC also networks with SABIC allowing for problem solving and access to the SABIC Technology Center for failure analysis and root cause analysis support. There are contacts with the process licensors on an â&#x20AC;&#x153;as

Tank Inspection by Rope Access

needâ&#x20AC;? basis. GPIC also networks with professional and industry organisations including the International Fertilizer Association.

Maintenance The Maintenance Department is organised into four sections Mechanical, Instrumentation, Electrical and Planning.

The structure reflects both routine maintenance work and execution of approved modifications and capital projects.

Resources: There is an onsite workshop well organised with overhaul/testing. There are also fabrication, electrical and instrument workshops. All workshops are very well organised and furnished with state of the art equipment and machinery.

Computerised integrated planning is via SAP Enterprise Resource Planning System (ERP).

CDR Plant under Construction

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Effective turnaround planning utilises both ERP and Primavera Software.

Major turnarounds involve a significant contractor presence supporting GPIC teams.

Philosophy: Maintenance practices are based on predictive and preventative strategies to support a major turnaround every two years. A Rolling 10 Year Turnaround Plan is prepared for significant reliability and capital related projects. The plan is reviewed annually to cope with changing circumstances.

Maintenance strategies involve : reliability enhancement, quality improvements, safety and environmental aspects,

“

Technician at work in the workshop

In-house manufacturing of spare parts.

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The high cost of spare parts, time required for replenishment and procurement and lead time for availability, were contributing factors in higher production cost and risk on plant reliability In-house manufacturing of spare parts was visualised as an alternative means to reduce these impacts. We saved around BD170,000 in year 2008 alone.

The program started in 2000. To date this program has saved the company BD1.615 million.

cost optimisation and effective resource utilisation. Each strategy details objectives with defined measurable targets for each section.

Effective Maintenance Business Practices enhancing reliability In line with the maintenance strategies, we have over the years introduced effective practices and systems that have helped us in achieving our objectives and goals related to enhancing plant equipment reliability. * Turnaround maintenance shutdowns are planned every two years to cover both corrective maintenance and preventive maintenance jobs that cannot be done while the plants are in operation. It also covers the implementation of Capital Projects, modifications and inspections.

• An effective preventive maintenance program is in place covering all sections of Maintenance.

• All major rotating equipment are provided with on line vibration monitoring system; however additionally rotating equipment vibrations are monitored on a weekly basis using portable Bently Nevada Vibration Monitoring Equipment.

• On-line existing vibration monitoring packages with a historical database allows a predictive capability.

• Condition monitoring includes lube oil systems that are checked regularly with oil analysis which includes metal content and oil quality checks.

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• Critical joints are identified and listed. Special attention is given to these flanges during tightening.

• A productive maintenance concept was introduced in 2002 to allow operators to carry out minor maintenance activities including cleaning of filters, topping up lubrication oil and valve greasing.

• Periodic inspection of motors, switchgear, transformers, fire alarms and cathodic protection.

• Thermographic infra-red imaging of electrical connections.

• Motor Circuit Evaluator: Motor circuit condition monitoring (insulation quality and cable resistance checks).

• Electrical protection relays for 3.3 and 11 kV systems are checked at each shutdown by vendor utilising pulsar relay test equipment.

• Circuit breakers are checked at shutdowns using breaker analyser.

• Batteries associated with UPS and DCS are load tested every turnaround.

• Preventive maintenance routines are established for instruments including trip initiation devices, pressure

GPIC’s MD H. E. Mr. Yousef Al Zamel visits the plant during turnaround

relief valves, control valves and ESD valves. Functional testing of ESD valves is done with stroking of these valves scheduled for turnarounds. At turnarounds, ESD valves are stripped down as part of the maintenance overhaul.

• There has been an ongoing program of instrumentation upgrades reflecting maintenance spare availability, technology upgrades, safety and reliability.

• System control reliability is further enhanced by duplication of field instrumentation.

• A program of smart self-checking transmitter upgrades was initiated in 2005.

Turnarounds : Maintenance and Planning Ever since its inception GPIC has striven towards the highest possible standards in all aspects of the petrochemical business; be it in the quality of products, the level of safety and environmental and social care or setting records for long periods of uninterrupted operation. These achievements were made possible by the meticulous and comprehensive management of Complex Turnarounds in addition to other sound management practices. The Ammonia and Methanol plants and associated utilities of GPIC have been in continuous production at full capacity since commissioning in 1985, except for the periodic stoppages for planned turnarounds. This is also true of the Granular Urea plant and additional utilities since their commissioning in 1998. Unscheduled stoppages have been few and far between.

Maintenance Personnel working on Instrumentation Cabinets

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The Complex Turnarounds are planned every 24 to 30 months to: • Inspect identified equipment and carryout statutory examinations.

• Overhaul rotating machines that cannot be accessed during normal operation.

• Carry out both corrective and preventive maintenance which cannot be done while the plants are in operation.

• Implement capital projects, including replacement of major equipment and plant improvements.

Rolling 10 Years Turnaround Plan The practice hitherto was to plan one turnaround at a time. In 2006 the management recognised the need for a longer term perspective. A study and development of a Rolling 10 Year Turnaround Plan is required to: • Optimise the workload and plan outage duration for each of next six turnarounds.

• Determine equipment replacement schedules for each of those turnaround.

• Ensure uninterrupted production by eliminating potential problems

“We aim for Reliability Enhancement Programs” Our maintenance strategies involve reliability enhancement, enhancing quality, safety and environmental aspects, cost optimisation and resource optimisation.

Ahmed Ghuloom Maintenance Manager

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ECONOMIC PERFORMANCE We share the results of our sustainable management activities with the stakeholders that influence our operation and performance - namely customers, business partners, shareholders, employees and creditors, along with the society and government.

Balance Sheets (Expressed in thousands of US$)

Assets Non-Current assets Property, plant & equipment

Current Assets Inventories Trade and other receivables Cash and cash equivalents

Total Assets

As on 31 December 2008 2008 2007 300,091 300,091

288,989 288,989

23,251 16,828 23,932 52,163 75,191 74,107 147,451 155,635 127,219 222,865 247,653 226,258 522,956

Equity Capital and Reserves Share Capital 159,000 Statutory reserve 79,500 Retained earnings 99,050 Proposed dividends 150,000 Total Equity 487,550 Liabilities Non-Current Liabilities Employee benefits Current Liabilities Trade and other payables Total Liabilities

Total Equity and Liabilities

315,811 315,811

2006

563,464

515,247

159,000 79,500 98,281 200,857 537,637

159,000 79,500 98,281 162,000 498,780

15,510

9,238

5,618

19,896 35,406

16,589 25,827

10,849 16,467

522,956

563,464

515,247

â&#x20AC;&#x153;

Our financial statements not only provide a look at the current state of the company, but also the future growth potential.

They also provide information on the economic impact for our stakeholders.

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Financial statements such as income statement, balance sheet and cash flow statement provide an overview of GPICâ&#x20AC;&#x2122;s economic performance such as profitability, growth, financial stability and asset efficiency. Our economic performance is the result of various activities, from production and sales, cost optimisation and investment. Financial data is useful for gauging our current competitiveness as well as future growth potentials.

Ratios Shareholders & Investors: Dividends Creditors: Interest

2008

2007

2006

11.20

14.93

20.85

Customers: Product sales and exports

Debt / Equity Ratio

0.07

0.05

0.03

Suppliers: Raw materials procurement

Debt Ratio

0.07

0.05

0.03

Operating Cash Flow / Assets

69.61%

41.89%

32.28%

Net Operating Margin Percentage

64.61%

60.16%

55.95%

Net Profit Margin

64.40%

59.92%

55.85%

Return on Total Assets (ROA)

55.37%

37.24%

32.64%

Return on Equity (ROE)

89.21%

59.64%

50.58%

Account Receivable Turnover 7.33

4.49

4.68

Inventory Turnover

3.94

3.72

and service purchase.

Employees: Wages, welfare benefits.

Society: Donations and social contribution.

Government: Taxes

104

Current Ratio

Financial Statement Ratios

4.57

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Dividends

Net Profit

As a result of our

US$ Million

profitability and

350 301

300

servicing, the

250 201

200 162

150

128 96

100

66 40

50 0

prompt debt

1

9

25

25

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Company could pay dividends to the shareholders for fifteen years in succession

1994 1996 1996 1997 1998 1999 2000 2001 2002

US$ US$ US$ US$ US$ US$ US$ US$ US$

30,000,000 30,000,000 15,000,000 30,000,000 15,000,000 9,000,000 36,000,000 21,000,000 21,000,000

2003 2004 2005 2006 2007 2008

US$ US$ US$ US$ US$ US$

60,000,000 96,000,000 129,000,000 162,000,000 201,000,000 300.000,000

Total US$ 1,156,000,000

“Securing competitive edge and cost competitiveness”.

Over the past years the company’s financial position has strengthened and has enabled GPIC to inject revenues to the Bahrain economy. GPIC’s cumulative profits and dividends to shareholders have exceeded 1 billion US dollars.

Adel Abdul Malik Finance Manager

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“

G P I C ’s H U M A N R E S O U R C E S D E V E L O P M E N T A P P R O A C H

GPIC firmly believes that human resources are the true wealth and assets of the company since they are the basis of all the local, regional and international achievements of the company.

Respect Involve Care Holistically

Our most valuable asset

A dedicated ammonia plant operator logging process parameters

Human Resources

We Invest in Training and Development

4.5 4 US$ - Million

important assets in their organisation.

Training & Development Programmes On the Job Training E-Learning Plant Simulator Internal & External Courses Talent Management Performance Management

5

3.5 3 2.5 2 1.5 5

Although, HRD deals with the development of people to serve the goals and missions of their employers, in many cases this is not achieved effectively.

Human capital has always been of paramount importance at GPIC and the management genuinely regards its people as the most valuable assets. The company’s training and development is structured to meet the individual employee’s needs. The commitment to human development is underlined by the establishment of the Administration Department

5 5 2000

106

Human Resources play a significant role in today’s business. Enterprises have started to realize that people are the most

2001

2002

2003

2004

2005

2006

2007

2008

which mainly contains Personnel and Training sections with all the necessary facilities and professional staff. The company has made considerable investment to develop and maintain this culture.

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The ultimate objective of the GPIC HR thrust is to not only maintain personnel records, manage labour turnaround and monitor absence, but to also ensure that employees are appropriately skilled for all levels of the organisation’s vocations. Employees are constantly undergoing career development and enhancement through periodic training and development programmes in various fields and disciplines. Hence, a considerable amount of budget is being allocated every year, to ensure the provision of professional and high quality Human Resources Development.

Training Mission To provide GPIC’s staff with a collaborative approach that addresses their training and development needs with innovative and cost effective solutions to ensure that all GPIC employees are qualified with the required job competencies to achieve the corporate objectives.

Training Centre Objectives The training centre is committed to achieve the following objectives in order to have well focused training.

• Provide effective training for graduate engineers, plant operators, technicians etc.

• Provide development courses for all the employees through identified Training Needs Analysis (TNA).

• Provide career development programmes/ succession planning for the relevant senior staff.

• Provide knowledge and information support.

“

GPICspent the highest amount on individual training at BD 5,174 per person.

GPIC recorded the fastest Bahrainisation growth rate which rose from 77pc to 83pc between 2005 and 2008.

National Oil & Gas Authority Report -2008

Training Strategy GPIC Management strongly believes that the success of any organisation predominantly depends on its human resource base and since production started in 1985, it has endeavoured to develop and maintain a training culture as an essential part of staff progress.

To ensure the effectiveness and consistency of the training activities, GPIC has adopted a systematic approach for implementing the training and development plans supported by a clear strategy, as detailed below: • The overall training policies of the company are guided by the Training and Development Committee headed by the Deputy General Manager (Technical Affairs) indicating the total commitment of the top management

Training and development - gets top priority at GPIC

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towards training and development of the employees.

• Detailed training programmes are prepared for all newly recruited trainees. This covers phase-by-phase assignments, documents to be read, attendance in specific units, participation in turnarounds, etc. Proper induction programmes are carried out for new employees as well as trainees.

• Competency based training needs analysis is carried out every 2 years for the employees to assess the training requirements to fulfill the competency requirement of the job.

• The data and comments from annual appraisal forms are taken into training needs data base to fulfill the requirements.

• Introduction of new technologies, safety regulations, quality and management systems also contribute toward the training needs input.

• GPIC participates regularly in annual professional and technical conferences to update information and facilitate networking with similar industries.

GPIC supports Injaz programme

• The training needs compiled through all the sources are collated into an annual training and development plan which is issued for implementation.

• The emphasis is given to In-house courses to ensure optimum participation and cost effectiveness.

• The effectiveness of the courses is evaluated on 2 levels by the attendees and also by the section head or the requester of the course. Proper criteria are set for selection of training providers to get the maximum benefit at an optimum cost.

• The annual training plans published by prominent training providers in Bahrain and in other GCC countries are regularly examined for any applicable training opportunity for employees.

Training Resources GPIC’s management always focuses on staff training as a means of furthering and enhancing the skills and knowledge.

To achieve this, the Training Centre is managed by competent professionals and the facility is provided with the following resources:-

E-Learning at GPIC

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• E-learning Centre at GPIC is a unique and one of its kind initiative in Bahrain using expert learning solutions to

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offer flexible training and enhance staff and trainee behaviour skills and academic knowledge.

• Training Centre Library: Books on all relevant subjects, periodicals and journals are available for reference.

• A modern auditorium with audio and visual aids is the centre for training and knowledge sharing lectures by GPIC and external speakers.

• Urea and Utilities Plant training simulators are an added advantage at the Training Centre.

“Our employees are our most valuable asset” GPIC firmly believes that human resources are the true wealth and assets of the company since they are the basis of all the local, regional and international achievements of the company.

Yusuf Fakhroo Human Resource Manager

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Safety, Health and Environment

Core Business Value Outstanding leadership and commitment to SHE Excellence, Incorporating best international health and safety standards for a robust risk control system, Participation of employees in decisions related to SHE, Companyâ&#x20AC;&#x2122;s focus on promoting safety outside work place.

We are continuously challenging ourselves to honor these promises.

At GPIC, we strive for ZERO HARM and adverse environmental impact whilst maintaining a healthy work place for all employees and contractual staff.

SAFETY, HEALTH AND ENVIRONMENT CORE BUSINESS VALUE

110 Safety, Health and Environment I

111 SHE Overview

I

114 Effective SHE Management

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“

S A F E T Y, H E A LT H A N D E N V I R O N M E N T ( S H E )

The success of the past motivates us to meet future challenges. It inspires us to make GPIC a safer place to work, to enhance the health of our employees and to continually provide the opportunity for them to protect and preserve the environment”

112 112

SHE (Safety, Health and Environment) Creating an Occupational Health, Safety and Environmental culture that adds value to GPIC and the general public.

Message from Abdul Rahman Jawahery, General Manager : Over the past few years, GPIC has been honoured with excellence in the field of Health, Safety and Environment performance, establishing a solid management system that incorporates accredition to ISO-14001, OHSAS-18001 and voluntary compliance to OSHA’s Process Safety Management.

GPIC’s management systems have proved to be successful, reaping recognition from a number of international institutions such as the Royal Society for the Prevention of Accidents (RoSPA). These international awards are clear evidence of our commitment to the establishment of HSE concepts in a total business culture, thus providing improvement of GPIC as a business as well as adding value to society and human resource alike.

The success of the past motivates us to meet future challenges. It inspires us to make GPIC a safer place to work, to enhance the health of our employees and to continually provide the opportunity for them to protect and preserve the environment.

In our journey to achieve this goal we intend to openly share our HSE performance and experience with all interested parties by going through the following pages of this report or visiting our website to learn how GPIC intends to establish HSE culture as a core business value.

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

Safety, Health & Environment Overview GPIC embraces Quality, Safety, Health and Environmental care as core business values. GPIC’s management is totally

R.W.Campbell Award :2008

committed towards achieving excellence in the fields of Safety, Health and Environment and this is reflected in the company’s SHE policy. The salient features of the policy are as follows: • Safe, healthy and eco-friendly work place • Compliance with legislation • Continuous improvement • Minimising emissions • Review of objectives and targets • Training • Improving the quality of life • Transparency

GPIC winning RoSPA Award for the Highest Performance of the Occupational Safety and Health Worldwide 2005

Over the years, GPIC has provided outstanding leadership in the fields of safety and health. The company has always made great efforts in selecting and incorporating the best international health and safety system and standards for building up a strong system for risk control. Numerous steps have been taken by the company to attract the participation of all the employees in adopting decisions related to safety and health in a transparent and effective manner. It is worth mentioning the company’s focus on safety outside the work place to ensure the participation of the employees’ families and community in many initiatives to promote awareness in the areas of health, safety and the environment and making it a way of life and community culture.

GPIC continues to enhance and strengthen its Safety, Health and Environmental (SHE) Management Systems by focusing on the following key elements of GPIC SHE Management System:GPIC General Manager receiving R.W.C.ampbell Award from National Safety Council, USA

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“

Judging panel’s citation:

Among the factors which caused the RoSPA Awards Panel to select GPIC as the overall winner were their outstanding top level leadership of health and safety, their efforts in synthesising the best from worldwide health and safety standards to build a truly robust risk management regime, the various steps which they had taken to involve their whole workforce, their strong focus on off-the-job safety and their efforts to involve employees’ families and the wider community in numerous initiatives to raise awareness of health, safety and environmental issues. The panel were also greatly impressed by the substantial and positive influence which GPIC has had on the continuing development of health and safety legislation and culture within Bahrain and their commitment to embed such values in the continuing development of their society.

114

•

Management Commitment

•

Competence Advice

•

Employee Involvement

•

Competence of Employees and Contractors

•

Integration of SHE into Business Process

•

Performance Reviews

•

Investigation and Implementation

•

Effective Communication

GPIC’s excellence in safety, health and environmental management has been continuously acknowledged worldwide

The Management’s commitment, efforts and one team approach has enabled GPIC to attain new heights in SHE related fields and these efforts culminated in winning numerous accolades at local, regional and international levels namely : British Safety Council (BSC) “International Safety Award”.

Royal Society for Prevention of Accidents (RoSPA) “International Chemical Sector Safety Award”.

Robert W. Campbell “International Safety, Health and Environment Award – 2008”.

Kingdom of Saudi Arabia’s award for “Best Environmental Management System”.

Furthermore, in 2008, the company reviewed its existing systems and procedures. Accredition to PASS-99, the Integrated Management System was achieved. Behavioural Based Safety Programme (BBS) was fully implemented.

BBS is considered one of the cutting edge safety programmes available in the world. In this programme employees gain an increased awareness of good safety practices and these practices then become natural behaviour. This in turn ensures that the company’s activities are carried out in an optimised safety environment, thus raising productivity to a new level.

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

The following is a list of significant SHE achievements during 2008:• GPIC achieved 12,855,981 manhours of work without a Lost Time Accident. This includes 7,740,966 manhours for GPIC employees, contractors working for GPIC achieved 5,114,855 manhours of work without lost time. This outstanding record was achieved through the encouragement of employees, contractors and visitors to report unsafe conditions and to take pro-active remedial action, thus preventing accidents. In addition, carrying out SHE audits throughout the year ensured that all work areas were controlled in such a way that they remained safe.

• Further enhancement and strengthening of the Behavioural Based Safety Programme (BBS) continued in 2008.

Root causes and corrective actions were generated to enhance behaviour.

• GPIC trained and qualified 42 first aiders in 2008, bringing the total number of qualified first aiders in the company to 114 which represents appoximately 24% of the total work force.

• The company re-affirmed its compliance to local and international environmental laws and regulations.

As in previous years, a number of Capital Projects were executed to preserve the environment through the reduction of waste and pollutants, reuse of resources and recycling of materials. The Herbal Garden, inaugurated in 2005, was extended and a number of trees were planted elsewhere in the complex.

As part of its annual contribution to replenish the national fish stock in the territorial waters of the Kingdom and to enhance ecology, the 16th batch of sea bream was released from the company’s Fish Farm. The Fish Farm underwent an expansion and now has three basins with a total capacity of 60,000 units. A new consignment of 60,000 fingerlings was introduced to the Fish Farm and will be released in 2009.

“

The RoSPA International Dilmun Environmental Award sponsored by GPIC recognises excellence in environmental as well as health and safety management.

The way any organisation manages environmental issues is a crucial measure of its standards of Corporate Social Responsibility, Competitiveness and Vision.

As more and more organisations accept the link between these, it is increasingly clear that, like health and safety, environmental concerns must be managed strategically and integrated at the very heart of management system and decision making.

RoSPA and GPIC believe that business have a fundamental role to play in enhancing and protecting the environment and that by providing recognition for an environmental champion others can be encouraged to adopt the same philosophy.

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Publicising environmental awareness amongst future generations progressed as planned. GPIC engineers presented a number of environmental lectures in both public and private schools. The total number of students benefiting from this programme has now risen to more than 10,000 since launching the programme in 2001.

For the fifth consecutive academic year, GPIC sponsored the Ministry of Education / GPIC Environmental Research Programme for students.

Effective SHE Management System at GPIC Safety is a â&#x20AC;&#x153;line managementâ&#x20AC;? responsibility with policy driven by in-house management initiatives rather than legislation. There is a published Integrated Quality, Safety, Health & Environment Policy approved by the Managing National Safety Council Chairperson awarding GPIC with the R.W. Campbell Award

Director and General Manager (2007). Elements include a safe, healthy and eco-friendly workplace, compliance with Kingdom of Bahrain legislation, continuous improvement, minimising emissions, review of objectives and targets, training, improving the quality of life and transparency.

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International Dilmun Environmental Award sponsored by GPIC

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“We at GPIC Aim for zero harm, we don’t look at what SHE costs, but what SHE saves”.

Safety is the foundation on which GPIC has achieved all the success and the recognition from international bodies.

We have received many awards and will continue to ask organizations to review our status so that we may learn and use the process as part of our continuous improvement program. Moreover we don’t compromise safety, quality or reliability for any reason. We are committed to comply with all local and regional legislation and regulations.

Yasser Abdulrahim Safety, Health and Environment Manager

Implementation is now encompassed within the OSHAS 18001 Safety and Health Management System (since 2004).

The GPIC disciplinary code and requirements specify clear actions for breaching safety standards.

Behaviour-based safety is being implemented, further enhancement and strengthening of the Behaviour Based Safety Programme (BBS) continued in 2008.

Hazard awareness is well profiled including training programs, extensive community programs and employee

family involvement (SHE week and family evening). Warning signs/notice boards are provided throughout the complex. A Chemical Safety Handbook (2005 revision) is issued to employees. Personal Protective Equipment (PPE) is to a high standard with significant upgrading in recent years including breathing apparatus, gas suits, fire proximity suits and Motorola radio sets. There is a SHE intra-net site.

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Health Care There is an onsite Medical Centre with monitoring for health and sickness. Health awareness activities have highlighted high blood pressure, heat stress, and anti-smoking campaigns. There has been extensive First Aid training.

Regular medical checks of employees are carried out including cardiovascular function and audiometry checks. All employees and their families are covered by health insurance.

The Medical Centre has an ambulance to cater emergencies.

GPIC encourages employees to lead a healthy life, hence a state-of-the-art fitness centre at the GPIC Club fulfils the requirements.

Smoking is discouraged at GPIC and is only allowed outside the building in designated smoking shelters. The first Monday of each month is a “Non Smoking Day”

Employees regular medical check up

Notable awards in recent years include: • The Sir George Earle Trophy in 2005 (RoSPA award for the most outstanding performance in health and safety worldwide).

• RoSPA Chemical Sector Award (2006).

• Robert W. Campbell International Sector Award and Finalist (2007).

• Robert W. Campbell International Award for Excellence in SHE Management (2008).

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Performance There is a computerised Accident & Incident Reporting System. Classification is in terms of injury (lost time accident), damage to equipment, fire, chemical exposure, “unsafe condition”, “near miss” incident, and environmental compliance. Injuries are reportable to the Ministry of Labour.

Near misses are further defined in terms of death, injury or property damage (without risk assessment).

2008 has seen the development of formal key performance indicators including the number of near misses reported in relation to accidents, the number of positive rewards and recognition given, the percentage of incidents investigated and findings closed out, implementation of action plans resulting from SHE audit findings, emergency exercises, observations / audits / inspections conducted versus planned and close out effectiveness, percentage of job safety analyses completed for critical activities, percentage of safe behaviours observed and associated percentage of actions implemented.

Committees There is a Safety, Health & Environmental Council meeting once every two months, which is chaired by the General Manager and Department Managers meet to discuss and drive SHE issues. There are also Safety, Health and Environment committees at Superintendent level that meet on a monthly basis to address / advise on SHE issues; the

Care for the Society

Safety team focus includes shop-floor and contractor meetings, safety induction, safety and firemen training.

Inspections and Audits Management audits of all work areas measure compliance check safety awareness and understanding of safe work practices.

There is a year long inter-unit safety competition that features both continuous in-house and an external review by other Bahraini companies.

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Ignition Source Control Ignition-related risk is minimised via a number of good practices including Control of Hot Work and Maintenance, Control of Vehicles, Electrical Classification, and controls covering mobile telephones / cameras and other portable electronic equipment (including checks on lighters and mobile telephones).

There is controlled smoking in dedicated areas adjacent to the process units (safe location was subject to Hazop study).

Fired heaters, gas turbines and boilers are arranged strategically given the prevailing wind conditions.

The sounding of the site alarm requires the immediate parking of cars and turning off the ignition.

Housekeeping Housekeeping is considered an important part of safety at GPIC. Permit to Work close out requires proper housekeeping once the job is completed.

Contractors Contractors are integrated into GPIC work systems. IOSH or NEBOSH qualification for each contracting company is required.

All contractors are shown a safety induction film. All main contractor supervision receives specialist work permit instruction.

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Emergency Response Organisation There is a full time professional Fire Brigade under the direction of the Safety & Security Manager. Each shift comprises a Fire Section Supervisor, together with three full time firemen and ten Auxiliaries comprising shift Operators and Laboratory Analysts.

Fire Brigade responsibilities include emergency response, preventative maintenance checks of fixed fire protection systems and emergency response mobile equipment.

Emergency Response Vehicles

Experience and Training Experience is best assessed by GPIC’s ability in recent years to present papers in the Middle East on Mutual Aid and Emergency Response.

All Supervisors have received specialist training in Jubail, Saudi Arabia.

All full time Auxiliary Firemen have received NFPA-based fire training at SABIC’s Jubail facility (2006-2007). Features include “live fire” and gas tactics.

All new personnel to the site are involved in an orientation programme which involves them in theoretical and practical applications of basic accident / fire prevention, along with familiarisation in the standard emergency procedures, general safe working practices and personal protective equipment. New operators and supervisors attend a course run by the Bahrain Civil Defence.

Effective Training

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Mutual Aid A Sitra Wharf Major Industrial Companies Mutual Aid Committee agreement is established (first signed in October 2001). This Mutual Aid agreement formalise personnel and equipment resources to be provided from the neighbouring companies namely ALBA (Aluminium Bahrain B.S.C), BANAGAS (Bahrain National Gas Company) and BAPCO (The Bahrain Petroleum Company). Direct “hotline” phone links are installed to BAPCO. Meetings are held every 3 months.

There is an agreed list of equipment.

The agreement has also led to joint fire training initiatives with BAPCO. The Bahrain Civil Defence can also provide outside support.

Emergency Plans Site emergency response procedures are documented and regularly updated (2006 revision), the roles of personnel are fully defined. An Emergency Procedure booklet is issued to each employee (2006). Recent years has seen investment in training, equipment with associated testing of emergency planning systems.

The Senior Shift Supervisor acts as the “Emergency Controller” and is responsible for overall response (he may be relieved by the Plants Operation Manager). In addition, the Safety & Security Manager is on 24-hour standby. There are three centres established for emergency co-ordination: • The Forward Control Centre is established by the Emergency Controller and used for tactical control near to the incident.

• The Main Control Centre (conference rooms in either the MCR or Urea Plant Control Room used for directing general complex operations is used by the Plants Operation Manager and designated emergency personnel.

• The Rear Control Centre is the Fire & Safety Control Room (FSCR) located within the Safety & Security Department building acts centre of communication and coordination of logistics and information, the RCC is controlled by the Deputy General Manager and designated emergency personnel.

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Well prepared for handling emergencies

There has been significant investment in emergency response equipment in recent years including gas suits designed

S U S TA I N A B I L I T Y R E P O RT 2 0 0 9

for Ammonia, chemical spill equipment including for laboratory, decontamination cell and suits, spill containment (up to 1,100 litres), stretchers, gas sampling, detoxification and disposal kits.

There is extensive equipment throughout the complex to ensure safe evacuation including 200 breathing apparatus sets, ladders and 1,000 escape masks. Marshalling Points for evacuation / assembly are defined.

Emergency response training was provided by Marsh in October 2001. This has initiated investment in Emergency Command Centre equipment. The FSCR is equipped with closed-circuit television to facilitate emergency response and security aspects.

The Crisis Management Plan (updated in 2002) covers a range of catastrophic events impacting on the GPIC business.

Software (QUEST Canary Version 4.3) has been purchased for fire hazards, gas releases and plume consequence modelling. Scenarios will be modelled reflecting Ammonia and Methanol process, tankage and pipe line operations.

Simulations Emergency drills involving Production/Fire & Safety/Auxiliary firemen take place up to six times a year. Different scenarios have been developed including Ammonia and chlorine leaks.

A major event is scheduled annually with evacuation drills held twice a year. An exercise requiring Mutual Aid and the Civil Authorities was last completed in December 2005 (Ammonia export pump leak). A Mutual Aid table-top simulation is scheduled annually.

Unannounced emergency evacuation drills have been completed in the past and resulted in a number of system improvements and investment in alarm and communications hardware. Observation forms are established.

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Sustain Nature for Future Generations • • • •

Environmental preservation and health promotion Preserving a green planet for the future generations Voluntary and future-oriented Corporate Social Responsibility Care initiatives We are continuously challenging ourselves to honour these promises

Responsible Care is Our Commitment to Sustainability

Sustain nature

124 Environment: sustain nature

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E N V I R O N M E N T: S U S TA I N N AT U R E Environmental Responsibility Strategy: Since its inception, GPIC has felt the need for maintaining an environmental balance. The Projectâ&#x20AC;&#x2122;s environmental impact was thoroughly examined and studied. All the necessary measures and steps were then taken to maintain such a balance. Although more than 24 years have passed since the plants went on stream, all the plants are still operating accordingly to the strictest local and international environmental standards. Gas emissions, waste water releases and liquid and solid effluents resulting from various processes have been minimised and are constantly monitored and controlled. The Urea plant, which came into operation in 1998, was subjected to the same system of environmental review at the design stage. GPIC insisted on installing a granulation process for the production of final solid product Date palm trees

rather than the more conventional prilling process despite the higher cost of construction and licensing. The choice of this technology has paid off and has resulted in reduced emissions of Urea dust.

All minor and major projects as well as engineering modification undergo an environmental review at the design stage and prior to actual commissioning. The company received certification to the international environmental management system ISO 14001 in December 1999.

The Environment Committee, formed under the umbrella of Safety, Health and Environment (SHE), is responsible for the supervision of environmental projects and promoting environmental awareness in the company and local community. The Committee also supervises and develops the Fish Farm, Bird Sanctuary, Herbal Garden and the Green Oasis Project.

To enhance environmental awareness, the Committee organises many lectures and competitions inside and outside the company. The most important of these are environmental lectures delivered to local schools and the Ministry of education focusing on GPICâ&#x20AC;&#x2122;s Environmental Research Programme.

Green oasis

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Waste Reduction and Treatment: The companyâ&#x20AC;&#x2122;s policy for waste management hinges on the 3Rs : Reduce, Re-use and Recycle.

The company mainly seeks to reduce waste to the minimum through the use of materials and processes that do not have any adverse effect on the environment. As for remaining waste, it is disposed off according to the environmental standards and rules in force in the Kingdom of Bahrain. Systems and procedures ensure that the safety of any new chemical material is checked before it is used.

Gas Emission Control: GPIC has installed sulphur and nitrogen oxide emissions monitoring equipment on stacks in the Complex.

Birds of GPIC

The emission levels from the process plants are much lower than the environmentally permitted levels in the Kingdom of Bahrain and internationally. The company has also decided to discontinue the use of Halon gas used in fire extinguishers because of its impact on the ozone layer. Additionally, the company has invested heavily in the replacement of cooling and refrigeration system that use freon gas to utilise more environmentally-friendly gases.

As part of a global effort to protect the environment, GPIC, in co-operation with Tecnimont of Italy and Mitsubishi Heavy Industries, Ltd. (MHI), Japan, is constructing a Carbon Dioxide Recovery Plant. The new technology is designed to reduce carbon dioxide emissions responsible for climate change. The move stems from GPICâ&#x20AC;&#x2122;s firm commitment to the protection of the environment and constant enhancement of its operations. The new carbon dioxide recovery plant is scheduled to be completed in January 2010.

Environmental Awareness: GPIC implements well established programmes to enhance environmental awareness inside and outside the company.

A number of environmental lectures are conducted every year for employees.

Nature and technology co-exist at GPIC

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“Not merely dreaming of a world filled with happiness and sharing, but shaping it”.

The most notable features of GPIC’s social contribution activities are the close ties between the various programs, active participation of all employees, and the ongoing nature of our projects. The company’s social contribution has become an indication for its strength. We support Environmental research programs and cultural events for our youth. Our assistance also extends to the elderly and to other corners of society. We hope GPIC will become even more involved with the local communities to create an abundant, healthy and caring society.

Fadhel Al-Ansari Technical Services Manager Chairman of Environment Committee

School pupils are also invited to visit GPIC to discuss the company’s experience in environmental care and the various environmental projects implemented by GPIC. This initiative is extended to the schools themselves where our Graduate Engineers present about 20 environmental lectures annually.

In the academic year 2004-2005 GPIC and the Ministry of Education launched an environmental research programme, the first of its kind in the Kingdom, where all schools were given the chance to participate, with winning projects being sponsored and rewarded by the company. In 2008 a total of 73 projects were presented bringing the total number of the projects since inseption of the programme to 424. This is an indication of the success of this unique programme.

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Responsible care

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Conservation of Water Resources: GPIC plants have been designed for optimum usage of water. Water conservation also covers potable water and irrigation. Modern automatic irrigation systems have been installed in all green areas to optimise water usage.

Energy Conservation: GPIC believes that energy conservation must start at the design stage. High efficiency equipment and energy saving devices are consistently specified and used through the complex. Operational philosophies are also regularly and methodically reviewed to optimise energy consumption.

The energy conservation team regularly organises lectures on electricity conservation, both at work and home. GPIC has managed to reduce its electricity consumption in buildings through the use of modern energy-saving lights with higher illumination output. In addition, street light bulbs have also been replaced by higher efficiency bulbs that consume less and provide a higher illumination level.

Recycling: In order to optimise the use of resources, GPIC has embarked on a programme for the recycling of all materials that can be reused. Such materials are sent to organisations specialised in this field. Furthermore, employees are encouraged to reduce consumption of paper through both-sided photocopying and re-use of waste paper for draft write ups.

Marine Environment Protection: Given that the companyâ&#x20AC;&#x2122;s site overlooks the sea and utilises large quantities of sea water for cooling and desalination processes, GPIC is strongly committed to protect marine life and is continuously seeking ways to enrich it further.

â&#x20AC;&#x153;

At the domestic level GPIC has invested more than $3.4 million during the last 8 years for environmental projects within the company.

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Fish Farm: With the aim of demonstrating environmental accountability, setting a good example to other industries and replenishing dwindling fish reserves in regional waters, the company embarked on constructing a fish farm close to the sea water outfall in November 1996. Since then, more than 330,000 sea breams (rare species) have been released into the sea.

The establishment of the Fish Farm provides the territorial waters with more than 30,000 fish annually. The environmental significance of this project, also provides conclusive evidence of the cleanliness of water released into the sea since the Fish Farm is located near the water outlets.

Fish Farm

Some of the fish harvested also go to charity for the underprivileged. As a continuation of GPICâ&#x20AC;&#x2122;s social responsibility and care for the environment, the 15th batch sea bream was released from the companyâ&#x20AC;&#x2122;s Fish Farm. The Fish Farm underwent an expansion and now has three basins with a total capcity of 60,000 units.

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GPIC fish farm has three basins

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Protection of Wildlife and Natural Habitats: The company has long recognised its responsibility to ease the pressure on the natural habitat and surrounding environment through implementing several key projects.

The Bird Sanctuary Rich with a variety of marine life, the south-west coast adjacent to the complex attracts various migrating and resident birds and waders that feed on these marine creatures.

The evident improvement in the environment around GPIC has encouraged GPIC’s management to further enhance its special focus on the surroundings and especially Bahrain’s bird life. For the first time in the summer of 2001, a large group of flamingos have stayed around the shores of GPIC. Normally they migrate to other countries and return to Bahrain in the winter. Their stay indicates that the sea and land around GPIC is suitable for flamingos and birds to live throughout the year. This has encouraged GPIC’s management to establish a Bird Sanctuary at the Complex for environmental and benevolent reasons under the directive and patronage of GPIC’s General Manager. The Bird Sanctuary was commissioned on 9 September 2001. A small nesting area and fresh pond have been created for the birds to enjoy a natural habitat with a view of further improving environment around the GPIC Complex.

Birds Sanctuary

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The success of these efforts is reflected in the significant increase of birds that inhabited the two islands. More than 100 species of birds have been spotted at the sanctuary.

Medicinal Herb Garden: To demonstrate the environmental friendliness of its operation, GPIC implemented a number of projects inside and outside its Complex, the latest of which is the Herbal and Medicinal Herb Garden inaugurated on 9 May 2005. Covering an area of 1,200 M2, the innovative project was launched with the prime objective of preserving indigenous herbs and plants that were once used by inhabitants to treat various illness. The Migrating birds near GPIC

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garden currently encompasses 20 types of herbs and shrubs. This garden has become a very useful platform for researchers, school students and dignitaries from which to benefit.

At GPIC we care for the environment

GPIC Oasis

Society: Respect People for a Better Society A reliable friend that is a source for future strength, A society that shares, cares and grows together, A smile for a better world and a happy tomorrow, We are continuously challenging ourselves to honor these promises.

At GPIC, Corporate Social Responsibility is about committing to open and transparent business practices based on ethical values and respect for employees and other stakeholders, society at large, and the environment.

RESPECT PEOPLE FOR BETTER SOCIETY

134 Corporate Social Responsibility

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139 Employees

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144 Major Achievements

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150 Children

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CORPORATE SOCIAL RESPONSIBILITY

To make a lasting impact on National Policies, GPIC is strongly represented in decision making institutions such as Bahrain’s Consultative Council, the National Oil and Gas Authority, Health and Safety Organisations, educational institutes and many professional bodies.

GPIC’s Management has always considered the interests of society by taking responsibility for the impact of its activities on customers, suppliers, employees, shareholders, communities and other stakeholders as well as the environment.

This obligation is seen to extend beyond the statutory obligation to comply with legislation and GPIC voluntarily took further steps to improve the quality of life for employees and their families as well as for the local community and society at large.

GPIC Family GPIC truly believes that its human resources are its most valuable assets and that the secret of its success is Team Work.

This motto is translated in practice through a coherent constructive relationship between the Management and GPIC’s Labour Union. Both parties work together towards achieving a common objective of creating a healthy working environment conducive to safety and productivity. This co-operation is also extended to the employees’ families.

In July 2004, the company inaugurated its luxurious Club exclusively for employees and their families. Throughout the year, a number of entertainment and educational activities are organised. Hundreds of employees’ children benefit from these activities especially during the school summer holidays. The strong relationship between the Management and the Union is further enhanced through the Annual General Employee-Management Meeting that enables the employees to participate in decision making, exchange views and present their talents.

Helping the Community GPIC believes that it is an integral part of the local community and thus has a responsibility towards this community. For this purpose, the company has carried out a number of projects that directly benefit the community.

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GPIC Labour Union

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Socially Responsible Investment The company has been able to increase its contributions to the local community, a policy trend that is strongly supported by the UN, which urges all concerned worldwide to comply with it under the title “Corporate Responsibility”.

In the past eight years alone, GPIC’s contribution to the community amounted to US$ 4.62 million. Most of these financial contributions went to local charities, sports funds, education, health and environmental protection. The charities were for helping the poor, handicapped, orphans, childhood care and women organisations.

In addition to financial contributions GPIC regularly donates items such as wheelchairs, laptops and schoolbags, etc. More than 2,000 kgs of dates produced in the Charity Garden are donated annually to the needy. In addition, hundreds of school bags are distributed to students in need at the beginning of every academic year. In all, GPIC had donated more than 30,000 school bags by the end of 2008. In 1996, the company established its Fish Farm and expanded it in 2001 to produce more than 30,000 fish annually. Part of this yield is donated to the needy.

Shaikha Maram bint Isa Al Khalifa visits GPIC

At GPIC, the Management genuinely regard its people as the most valuable assets. The company’s training and development is structured to meet the individual employee’s needs.

Community Involvement Community involvement is embedded in the fabric of GPIC’s business. Most importantly, GPIC’s active participation in various institutions. GPIC is represented on the Board of Directors for University of Bahrain, Bahrain Training Institute, National Committee for Safety and many professional bodies.

Supporting the welfare of the community is also realised through generous contributions to organisations such as Sports Clubs and Associations, Libraries and professional bodies. In the past 9 years, GPIC trained 640 school and university graduates and provided material support to organisations caring for the young.

GPIC Supports Bahrain International Garden Show 2008

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CSR Activities Environmental Awareness Program for schools: GPIC also believes that caring for environment does not end at its doorstep. In 1998, GPIC started its environmental awareness lectures to schools. To date, 185 schools have been visited benefiting 13,800 students. Environmental Awareness Program for schools is part of GPIC’s initiatives towards environment and the society. GPIC recognises this initiative as part of its social responsibility, a pillar of its Sustainable Development Policy. These lectures aim at enhancing the awareness of the school students about the major local, regional and global environmental issues. GPIC’s experience in minimising pollution and developing its surrounding environment are also highlighted in the lectures. The lectures are organised annually in coStudents attending Environmental awareness lectures

ordination with the Ministry of Education in the Kingdom of Bahrain. Graduate engineers from GPIC visit public and private schools preaching the important environmental message to future generations.

Program Objectives: • To promote environmental awareness amongst young generations.

• To serve the community by minimising the pollution and protecting the environment.

• To assist students to take part in saving the environment.

• To encourage other industries to take a positive role in protecting our environment.

• To enhance the presentation skills of graduate engineers as a part of their development program.

GPIC / Ministry of Education Environmental Research Programme Several environmental projects from secondary schools are selected by GPIC under its Education and Environmental Shaikha Marwa bint Rashid Al Khalifa with GPIC’s Deputy General Manager Mr. Yousef Abdulla during her visit to GPIC

Research Scheme. GPIC launched the scheme in cooperation with the Ministry of Education at the beginning of 20052006 school year. It aims at encouraging Bahraini schools boys and girls to get involved in scientific research especially related to environmental topics. GPIC has set aside a budget to finance a number of environmental researches and

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projects to be selected by the secretariat that include representatives of the Ministry of Education, GPIC and a number

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of environmental specialist. Around 350 schools participated in the Ministry of Education “GPIC Environmental Research Programme” and the company financed around 81 projects at a cost of $120,000. The selected projects cover four main environmental topics including management of domestic waste, water and power supply, recycle and reuse, and protection of marine life and wildlife. Such topics have been chosen primarily for their significances to the Bahrain environment and secondly due to their close relationship with the daily lives of the targeted group of students.

Such topics allow the students’ creative abilities to be demonstrated and enable them to have broader understanding of the details of such environmental issues.

“The GPIC Environmental Award” A total of 73 submissions were received from 36 schools. 25 schools were short listed out of which 13 were girls’ schools and 12 were boys’ schools. The committee has chosen the below listed projects as winners for the Academic year 2008-2009: • “Electronic waste” by Saar secondary school for girls.

• “Plantation with magnetic water” by Al Manama secondary school for girls.

• “Green house effect on Bahrain over last 30 years” by Al Muharraq secondary school for girls.

• “Reuse of waste building material” by Jidhaff secondary school for girls.

• “How to reduce gaseous emmission from cars” by Esa Town secondary school for girls.

• “Are the Chlorine’s Cons more than Pros” Isa Town secondary commercial school for girls.

• “Double E” by Hamad Town secondary school for girls .

Arab Corporate Social Reponsibility Award

• “Our environment and pesticides” by Al Hidd secondary school for girls.

• “Effect of dust” by Sitra secondary school for girls.

• “Auto Energy Park” by Jid Haaff secondary industrial school for boys.

• “Reuse of waste from schools and Houses” by Al Mahdaddini Religious school for boys.

• “Use of solar energy for traetment of water” by Al Muharraq secondary school for boys.

• “Radioactive food” by Shaikh Abdulazeez bin Mohammed Al Khalifa secondary school for boys.

• “Survey of asthama cases in secondary schools in Bahrain” by Atthoun secondary school for boys.

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• “Fertilizers production” by East Riffa secondary school for boys.

• “Gardens in schools and Houses” by Shaikh Isa Bin Al Khalifa secondary school for boys.

• ‘A study on how secondary schools in Bahrain can prevent pollution” by Al Jabria industrial secondary school for boys.

• “A study on mangrove plantation” by Hamad Town secondary school for boys.

Industrial Training Every year University students receive the benefits of the excellent on-the-job training facilities available at GPIC. During their industrial training period the students are given full exposure to both the theoretical Team Work

and practical aspects of their field of study. The students are not limited to Bahrain and even come from countries such as India, Pakistan and some other Gulf countries. This is a clear indication of GPIC’s support for developing young students by exposing them to the practical realities of the petrochemical industry

“Community involvement is embedded in the fabric of GPIC’s business”

Zuhair Tawfiqi Public Relations Manager

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Employees Employees at GPIC are the most valuable assets. This is translated first and foremost in the strong relationship between the Management and Labour Union. The two parties are cohesively bonded in working committees such as the Safety, Health and Environment committees. To participate in the decision making process, employees voice their views through the well established committees and through the suggestion scheme.

Participants are rewarded on a monthly basis. The same occasion is also utilised to reward employees of the month. Annually, outstanding employees are also rewarded for their achievements. Employees’ benefits include a saving scheme, health insurance covering all employees and their families, loans, indemnity, annual bonus, etc. In 2004, GPIC built a luxurious club exclusively for the employees and their families where summer activities are organised during school holidays for employees’ children, in addition to “Fun Days” and a kindergarten running throughout the year.

“

People are at the heart of GPIC sustainable competitiveness. We have a wide range of systems to nurture creative people and continue to invest in and support developing best talent.

Education Programmes Recognising that recruiting and retaining the best people is the most important factor to surviving in the rapidly evolving business environment and fierce competition, GPIC operates systematic and professional education programmes to enable our people to realise their full potential. We offer a mentoring system to tap the potential of new recruits fresh out of university and a global business course for nurturing global talents. We also provide training for key personnel by job position and specialised training courses by job function. Our diverse HR development schemes reflect the educational demands of each job position and are helping to develop top talents in their respective fields.

Employee Benefits and Welfare Programs GPIC offers a broad array of benefits and welfare programs to provide a stable and stimulating work environment.

We operate diverse programs for our workers and their families to raise productivity and job satisfaction. These programs are helping to instill in our employees and their families the idea of the work place as a familiar and safe environment.

GPIC Club provides excellent facilities for employees and their families

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Some of the Employee Benefits and Welfare Programs:

Charity Dish

• Housing Finance/Loans

:

Employees are offered interest-free loans for purchasing homes.

• Housing Allowance

:

Employees are paid housing allowance for renting homes.

• Vehicle Maintenance :

Employees are paid a fixed amount every month as their private vehicle maintenance allowance.

• Saving Scheme :

• End of service : Compensation Scheme

Contributory Saving Scheme.

For all employees.

• Health Insurance : For all employees and their families Scheme .

• Social Allowance

:

• Pilgrimage (Haj) Leave :

• Paid Leave :

• Participation in :

Women Empowerment

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For all employees.

Paid leave, once per contract period.

27 working days each year.

Employees representative – The Labour Union is represented in most of decision making the working committees and ad-hoc teams.

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Leisure Facilities GPIC Club: In July 2004, the company inaugurated its luxurious Club exclusively for employees and their families. Throughout the year, a number of educational and entertainment activities are organised. Hundreds of employees’ children benefit from these activities especially during the school summer holidays.

Annual Desert Camping: Every year during the winter desert camping is arranged for several days. Employees and the Management mix together in an informal gathering, enhancing and strengthening their bond as ‘one team’.

Health and Fitness Programs

GPIC Club

GPIC Club provides numerous facilities related to Health and Fitness, e.g. swimming, tennis, health club, etc. In addition to this, GPIC arranges several sporting events throughout the year and the GPIC sporting teams take part in Industrial Sports Tournaments on a regular basis.

Training and Development, including self-development Employees are provided with many programs for self-development; some are listed below: • GPIC Toastmasters Club – Both English and Arabic.

Children at summer football play

• E-learning facilities at GPIC Training Centre.

• Training Courses – In-house, local, regional and international.

• GPIC Suggestion Scheme.

• Knowledge Sharing Program.

• Technical visits to neighbouring plants.

• Mentoring.

• Distribution of school bags and stationery to employees children every year before start of new school term is a clear indication of GPIC’s Management commitment towards supporting education for employees children.

A child being awarded by the GM

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Awards and Rewards for Employees

GPIC Management pays great attention in appreciating and rewarding deserving employees as an acknowledgement of their good work. Some of the awards categories are as follows: • Annual Celebration and Awards Ceremony: During the company’s annual celebration day each year, employees are awarded for their long service with the company. In addition, employees are also rewarded for their outstanding performance and achievement in various fields. 18 different categories of awards are covered.

Awards and Recognition

• Employee of the Month: An employee is selected each month based on well established criteria and rewarded.

• Best Suggestion of the Month: The Suggestion Committee rewards the employee with best suggestion.

• Employee with Most Suggestion: The Suggestion Committee rewards the employee with Most Suggestions every month.

• Best Suggestion Evaluator: The Suggestion Committee rewards the Best Suggestion Evaluator.

• On-the-spot Appreciation:

GM with Employees’ Children

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Appreciation Certificates are awarded to deserving employees for their outstanding work.

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Social Activities and Events Some of the social activities are as follows: • Safety, Health and Environment – Family Evening: As part of Safety Week, employees’ families are invited for a gala dinner.

• Fish for Charity: Annually, the employees participate in a fishing competition where all the catch is donated to charity.

• Employees’ Children Summer Camp:

GPIC Toastmasters Club

Every year during the summer break from schools, a summer programme is organised by the company in which extensive activities are arranged for employees’ children in order to further promote their ability and skills.

• High achievers – Employees’ school going children are rewarded: Outstanding students are rewarded for achieving exceptional grades in their examinations.

• Charity Dish: GPIC Ladies Committee arranges a Charity Dish Luncheon every year.

• National Day celebrations for employees and their families are held at the GPIC Club.

• Eid Parties are arranged for the employees and their families at the GPIC Club every year.

GPIC Camp

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GPIC MAJOR ACHIEVEMENTS GPIC’s Major Achievements (Regional and International recognitions): The following is a summary of the major achievements of regional and international recognitions received for exceptional performance in operational excellence, reliability, quality, safety, health and environmental care and management systems:

1994

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Chem-Systems UK Benchmark – Best Run Methanol Plant Worldwide.

1995

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ISO 9001 Certification.

1996

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Plants Survey International, USA:

Benchmark – rated one of the top Ten Ammonia plants surveyed.

1997

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DHL/Gulf news Best Industrial Enterprise in the Gulf Region.

1998

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GCC Best Environmental Industry.

1999

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ISO 9001 Certification for Urea; ISO 14001 Certification.

2000

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Synetix (ICI) UK Benchmark one of the best run plants surveyed.

2001

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RoSPA (UK) International Sector Award.

2002

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H.H. The Prime Minister’s Award for Excellence in Major Industries.

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RoSPA (UK) International Sector Award.

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ISO 14001 Re-Certification.

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Best Ammonia/Urea plant performance Benchmark – GCCRegional Survey.

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Plants Survey International, USA: Best Complex Performance.

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Shaikh Mohammed bin Rashid Al Maktoum’s Award for Arab Management, outstanding

2003

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2004

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Arab Enterprise.

First company in the Arabian Gulf to be certified as Level-1 Low Risk for Urea shipment

by AQIS, Australia.

Accreditation to OHSAS 18001:1999.

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H.H. Shaikh Abdulla bin Hamad Al-Khalifa’s Award for Best Environmental Garden.

- Ministry of Labour and Social Affairs’ Award for Excellence in Occupational Health and Safety.

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Inauguration of the GPIC Club.

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GPIC Urea certified “Best Product in 10 years” by Hi-FERT, Australia.

2005

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Rafiq Al Hariri Award for Best Maintenance System in the Arab world.

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Best Methanol Plant – Johnson Matthey Benchmarking.

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GCC Labour Ministers’ Council’s Award for Bahrainisation.

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Sir George Earle Trophy from RoSPA (UK) as the only organisation from outside Europe and

North America.

2006

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Kingdom of Saudi Arabia Award for Environmental Management.

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Institution of Chemical Engineers (UK), ABB Engineering Services Environmental Award.

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Rafiq Al Hariri Award for Best Operation System in the Arab world.

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Certification to ISO 27001 Information Security Management System.

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RoSPA International Sector Award.

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GPIC launched its International Dilmun Environmental Award in coordination with RoSPA, UK.

2007

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GCC Best Environmentally Managed Organisation in the private Sector.

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RoSPA International Sector Award.

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Certificate of recognition from UN-HABITAT for best practices adopted by the company in

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corporate social responsibility.

Highly commended award by IRR Institute for the company social responsibility programmes and ground breaking environmental activities.

2008

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British Safety Council (BSC) “International Safety Award”.

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Royal Society for Prevention of Accidents (RoSPA) “International Chemical Sector Safety Award”.

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Robert W. Campbell “International Safety, Health and Environment Award – 2008”.

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Kingdom of Saudi Arabia’s award for “Best Environmental Management System”.

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Arab Corporate Social Responsibility (CSR) Award from the United Arab Emirates.

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Companyâ&#x20AC;&#x2122;s Social Contributions have become an indication of its strength

Responsible Care: Our Commitment to Sustainability

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Our Children Our Future

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We care about the future generation, Many programs are designed to target the children of our staff members

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They need attention

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150 Children of Our Employees

OUR CHILDREN OUR FUTURE

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THE CHILDREN OF OUR EMPLOYEES We at GPIC, decided to design a considerable number of social activities for the Children of our employees. We think it is important to share our values and beliefs with them. They are the extension of our employees and are part of

“Honouring a child in presence of their parents, all staff members and their families means a lot to the child and will positively impact their character and their desire to excel” Jawahery

Bahrain’s future pool of talent.

At an early age when children are exposed to the powerful concepts, which we have developed over the years, these values and beliefs will have a positive impact upon them and they will become motivated to do the same for their children and they will hope to give them a better chance too.

Some of these concepts and values which are reflected in our programs for children are: The importance of Safety Quality in everything we do Teamwork, works Taking care of the environment Respecting people Being loyal to the country Success Professionalism The Importance of Education The assumption is that if we embrace and apply some, all, or a combination of these values early in children’s lives, they will achieve better results in whatever career or field they want to pursue. By doing this we will create a new generation of committed, hard working men and women able to meet the challenges and make a difference in future for society.

GPIC Family GPIC truly believes that its human resources are its most valuable assets and that the secret of its success is Team Work.

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GM receiving employee’s children

This motto is translated in practice through a coherent constructive relationship between the Management and GPIC’s

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Labour Union. Both parties work together towards achieving a common objective of creating a healthy working environment conducive to safety and productivity. This co-operation is also extended to the employees families.

In July 2004, the company inaugurated its luxurious Club exclusively for employees and their families. Ever since inauguration, a number of entertainment and educational activities have been organised. Hundreds of employees children benefit from these activities especially during the school summer holidays.

SHE Family Evening Every year the company celebrates Safety, Health and Environment work and achievements, during which lots of activities and competitions are announced for the family of our employees such as;

Camel ride at the GPIC Club

Spot the hazard at home, Safety, Health and Environment, related drawings

The winners of the various competitions are honoured in a fabulous evening full of entertainment for the entire family.

All employees and their families attend this spectacular evening.

National Day Celebration Every year GPIC celebrates National Day and hosts all staff members and their families at the Club. This is designed to instil in the children the importance of being loyal to the country. Colourful activities and enormous gifts and prizes are made available for all.

National Day Celebration

Eid Party The third day of Eid is a get-together for GPIC staff members and their families. We organise a special party and there

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Children require guidance and sympathy far more than instruction

Our Goal Parents can only give good advice to help put their children on the right path, but the final forming depends on how many good examples they see outside! We want to be that good examples for the children of our employees is entertainment for all. Sharing these important occasions together creates bonds. The discipline and safety measures are maintained at a very high level.

Summer Camp During the school summer holiday, July-August we organise a summer camp for our employees children. Instead of sitting at home or doing something unproductive, we decided to remove that burden from our employees and organise an effective summer camp for employees’ children where they can learn useful skills. The activities range from:

Children improving their IT skills at GPIC Club

• Swimming

• Aerobics

• Martial Arts,

• Tennis

• Cooking for Parents

• Football

• Computer Classes

• First Aid

• Painting

• Trips to discover Bahrain

• Hand Crafts

• Community Service

We also provide transportation to and from the club. While learning skills, it is very important for the leaders of tomorrow to learn discipline, team work and the importance of safety. They spend quality time at the camp and parents visit regularly to encourage and participate. This is one of our most popular activities. At the end of the camp 154

GPIC’s General Manager Providing guidance to a child

the General Manager and the Executive Management Team Members join the children in a grand celebration to

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reward the children for their contribution and outstanding performance. Many talents have been identified and some children are now pursuing new hobbies as a result of these camps.

Complex Visit Program We also have plant visits for the children of our staff members. We invite them to the complex and organise a guided tour of the plants. They see the contribution of their parents in creating a world class complex. We highlight environmental enhancement projects and take their pictures so that they proudly show their friends. By doing so, we are teaching them that wherever they go and whatever the job is, they should always take care and enhance the environment around them. There is no contradiction between environment and industry.

In addition to the above, the tour Programme Objectives include:

GPIC employees’ children having fun

To promote environmental awareness amongst young generations.

To serve the community by minimising the pollution and protecting the environment.

To encourage all to take a positive role in protecting our environment.

Ramadan Celebration ‘Girgaoon’ The holy month of Ramadan uplift the spirituality of people and they become socially active. At night people visit each other and on 15th of Ramadan the entire kingdom celebrates ‘Girgaoon’. We also participate and take this wonderful occasion to bring our family members together. Traditional games and food is the main theme. Children, boys and girls will be wearing traditional dress and the Celebration also features ‘Fraiseh’, a small wooden horse with colourful decoration to attract children to follow and sing a magnificent song with drum beats paying farewell to Ramadan.

We are happy children of GPIC employees’

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Children at GPIC club swimming pool

Summer 2008 end of program celebration

TM

P.0.Box 26730, Manama, Kingdom of Bahrain Tel: (+973) 17731777, Fax: (+973) 17731047, E-mail: gpic@gpic.com www.gpic.com