THE MAJNOON OILFIELDs03.static-shell.com/content/dam/shell-new/local/country/are/... · THE MAJNOON OILFIELD “I AM PROUD TO BE REBUILDING THE IrAQI OIL INdUSTrY ... with Iran in

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ALSO IN THIS ISSUE:

Gas supply in the MENA regionThe golden age of gas

Eco car Abu Dhabi It is capable of covering more than 700 kilometres from a single litre of diesel

Qatar Research CentreHow Shell is committing to $100 million over 10 years on Qatar’s gas industry

01MIddLE EAST & NOrTH AfrIcA

THE MAJNOON OILFIELD“ I AM PROUD TO BE REBUILDING THE IrAQI OIL INdUSTrY”

833281_MENA Magazine_02_Coverspread.indd 1 13-02-13 15:32

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cONTENTS

4THE MAJNOON OILFIELDHelping Iraq to rebuild its O&G Industry.

10A MyTHIcAL OASIS “Nimr is the highest oil producer in Oman, but also the largest water producer in Oman”.

16GAS SUPPLy IN THE MENA REGIONThe governments of the Middle East and North Africa find themselves in a dilemma. Many of the countries are facing a domestic gas shortfall.

22EcO cARThe most remarkable vehicle in Abu Dhabi.

26QATAR ScIENcE AND TEcHNOLOGy PARkA commitment to invest $100 million over ten years.

30TRAVELLING THE SILk ROUTEWhen the former Middle East head of Shell went travelling on 50 dollars a day, he discovered the region is about two things in particular: Islam and energy.

WELcOMEfEBrUArY 2013

Shell has a long and proud history in the Middle East dating back to 1911 when we were first present in Egypt. We have had the benefits of working with many of the region’s National Oil companies which while providing for knowledge transfer, job and revenue generation, has given us a deep understanding of the region’s geology, geography, society and culture.

Today National Oil companies in the Middle East are technologically and financially stronger than ever and some could assume the future role of the International Oil companies in the region. However, Shell’s value proposition as a partner of choice focused on innovation, markets, people and skills remains strong. Through our focus on innovation, we develop new technologies with our NOc partners; through markets, we provide access to an integrated value chain and; through people and skills, we invest in developing local talent and supply chain capabilities. As this edition of the MENA magazine will tell, we believe the future for Shell in the Middle East is indeed bright.

Among the stories in this edition you will learn about our progress to develop the Majnoon oilfield under challenging climate and security conditions which has yielded approximately 3000 jobs in the country. Hear about a “mythical oasis” in the prolific Nimr oilfields created as a result of the successful purification of more than 95000m3 of contaminated water per day in gravity fed filtering beds. And also read about how the “Golden Age of Gas” is playing throughout the region. At Shell we believe natural gas is acceptable, affordable and abundant which makes it the fuel of choice to power the region’s electricity growth as well as provide new export opportunities.

I hope you enjoy the magazine.

Andy BrownUpstream International Director, Royal Dutch Shell

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833281_MENA Magazine_02_Coverspread.indd 2 13-02-13 15:32

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to contact the magazineShell World middle east & north africaShell exploration and Production international Po Box 11677, Dubai, United arab emirates

[email protected]

DeSignProduction centre of excellence, the hague (833281)

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Cover image: Welder ahmed al Wan, working on the construction of the majnoon field iraq.

Shell World Middle east & North africa

~Matthias Bichsel, Projects & Technology Director, Hans Nijkamp, Iraq VP & Country Chairman, and members of the Majnoon construction team overseeing progress at the new Central Processing Facility.

“ I AM PROUD TO BE REBUILDING the iRaQi oil inDUStRY”

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INNOVATION 01

There is a flag that flies every day (during the hottest period of the year) over Shell’s Central Processing Facility under assembly at the Majnoon oil field in south-eastern Iraq. The colour can change every day, for it acts like a warning signal on an Atlantic beach. A blue flag means that the temperature is below 28 degrees Celsius, while an orange one signifies that it is lower than 38 degrees. A red flag warns that things are hotting up, between 38 and 50 degrees, and everybody is made to take a break every 20 minutes and drink some water. When the mercury hits 50 degrees or more it is time for the construction workers to lay down their tools and seek some shade and a purple flag is flown.

“We had a month in the summer, and it was Ramadan too, when the purple flag was flying,” says Philip Hayhurst, Petrofac’s construction manager who is in charge of making sure that the plant is put together on time, and in the right order. “It is a >>

The relationship between Shell and the Majnoon Oilfield dates from late 2009. Now there are more than 3,000 people working to rebuild the facility in Iraq.

THE MAJNOONOILFIELDHELPING IRAq TO REBUILD ITS O&G INDUSTRy

~ Ahmed Al Wan, welder at Majnoon Oilfield.

| The Majnoon field under construction.

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SHELL WOrLD MIDDLE EAST & NORTH AFRICA

� Majnoon’s central processing facility under construction.

>> challenging place to work, but so far everything is fitting together well.”

A large number of vessels and components of the new facilities were made and assembled by one of our main contractors in Sharjah in the United Arab Emirates. Then it was taken apart, put onto barges, and shipped up the Shatt al Arab River, which was cleared expressly for the purpose by Shell workers, the first time in 31 years that commercial goods have travelled up so far North the water channel. Now the individual pieces are being reassembled like a giant Meccano set.

“I didn’t believe it would work so well,” says Mr Hayhurst. “Everything has fitted in perfectly with just one small adjustment needed.”

There are more than 3,000 workers on site, with nearly 75 per cent of them Iraqi. Ahmed Al Wan is a welder who lives in Basra. He has been working at the plant for more than eight months. “I am proud to be rebuilding the Iraqi oil industry,” he says. Two young Iraqis, Nawaf Mohammed and Saif Salah, two engineers who studied in Basra and have found jobs almost on their doorstep, share that view. “It’s great to be part of this project,” said Saif Salah.

History of Shell’s presence

Shell’s presence in Iraq dates back to the early days of the Iraqi oil industry when it helped discover the Kirkuk oilfield in 1927. In 2003, Shell supported

the Ministry of Oil in Iraq by conducting detailed reservoir studies under the Memoranda of Understanding that had been signed for the Kirkuk oilfield and those in the Missan region. In 2005, Shell, Mitsubishi and the Iraqi Ministry of Oil started to work on a joint gas masterplan with the Ministries of Industry and Electricity to optimise gas production and utilisation. Iraq has the world’s third largest proven petroleum reserves and these resources will play a critical role in helping address the global energy challenge. In January 2010, the Ministry of Oil and Shell signed a contract to develop the Majnoon oilfield.

BattlefieldNearly three years later, work is progressing

well despite the challenging conditions. As well as the summer heat, workers need to cope with a number of other factors, including the soil, a fine dust that turns into a sticky porridge when it rains, which is rarely. Majnoon means ‘crazy’ in Arabic, and the place has certainly had a wild few years. It was the scene of the fiercest fighting in the war with Iran in the 1980s. After a brief respite, there were the two Gulf wars to contend with.

While being used as a battlefield, the waters that used to cover much of this area were drained. The construction of hydro-electric dams by neighbouring countries also reduced the flow of the Tigris and Euphrates rivers.

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3000WORKERS

IRAqI75%

INNOVATION 01

� Al Hawizeh marshes.

} A fence signals the edge of

the minefield surrounding the Majnoon oil field.

“ WE ARE NOW USING aRmoUReD VehicleS TO FIND SOME OF THE MINES”

Khairi Abdul Zahar is the head of the local community in Nashwa. He remembers wistfully what it was like when the water still flowed through the marshes, home to wildlife, plants and trees and a lifestyle that had endured for thousands of years, written about so evocatively in Wilfred Thesiger’s Marsh Arabs. “you cannot imagine how beautiful it once was,” he says.

The northern part of Majnoon used to be a marshland and the little that now remains is considered to be part of the Al Hawizeh marshes. According to Shell’s environmental standards, there has been a decision to avoid entering the northern part of the field until a biodiversity action plan is undertaken to help protect the Ramsar site. remnants of war The water may take years to return, but there’s another task equally challenging. The remnants of war, known by the professionals as Explosive Remnants of War, first have to be cleared. Shell employs a team to make sure that area for drilling and laying pipelines is safe from explosives, as well as clearing up as much as they can find so that the local community do not suddenly step on a mine. It is run by Tony Wyles, a British Army veteran.

“The place is littered with ordnance,” he says. “We are now using armoured vehicles to find some of the mines, along with more traditional methods such as hand-held mine sweepers. As well as Shell’s investment

~ Hans Nijkamp, Shell’s Vice President and Country Chairman in Iraq.

>>

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} Shell encourages the local children to play Football for community.

� New class rooms sponsored by Shell at the nearby school in Nashwa.

>> in oil and gas, the company is making a difference to the local community. In a classroom full of Iraqis they are learning English, a lesson that combines language skills with technical knowledge of various parts of an oil drill. Shell has also paid for two new classrooms at a primary school. young girls in grade 1, button bright-eyed, recite Iraqi poetry and dream of being engineers.

But the best thing that Shell is doing for the local community is providing jobs, more than 2,400 in total. “Jobs are not just good, they are excellent,” says Khairi Abdul Zahar. The wages are transforming the lives of families, allowing them to build better homes and buy more food, clothing and cars. “During the conflict there were no jobs at all. It was terrible,” he says. A new challenge

In the eyes of the young Iraqis there is a clear desire to put the past 30 years behind them and learn from the technical knowledge of Shell. Shell insists on proper health and safety, introducing best

practices such as the wearing of protective clothing, the importance of speed limits and dismissing drivers for not wearing their seatbelts. Now everybody wears a seatbelt, not just because they don’t want to lose their jobs but also because they now realise it might save their lives.

“When it comes to safety we do not compromise, we all share the same level of responsibility to ensure the safe return of everyone back home to their families at the end of the day,” says Hans Nijkamp, Vice President Iraq and Country Chairman.

Jim Williams, an asset HSE manager at Shell Iraq Petroleum Development agrees. “I love working here,” he says “There’s a new challenge every day and we really feel we are making a difference to people’s lives.”

The benefits of Majnoon, the South Gas Project and other Shell businesses to Iraq as a whole are compelling. These mega projects play a critical role for Iraq, as they contribute to the reconstruction of the oil and gas industry and the economic development of Basra and Iraq. n

1927 Shell helped discover the Kirkuk oilfield.

2003Shell supported the Ministry of Oil in Iraq byconducting detailed reservoir studies under theMemoranda of Understanding.

2005Shell, Mitsubishi and the Iraqi Ministry of Oil started to workon a joint gas masterplan with the Ministries of Industry andElectricity to optimise gas production and utilisation.

2010The Ministry of Oil and Shell signed a contract to developthe Majnoon oilfield.

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INNOVATION 01

“ THE BEST THING SHELL IS DOING FOR the local commUnitY IS PROVIDING JOBS, MORE THAN 2,400 IN TOTAL.”

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A MyTHICAL OASISNIMR REED WATERPLANT


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FuTurE ENErgy 01

~ Nimr water reed plant in Oman.

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It is not easy to visit the Nimr reed beds in southern Oman. If you are lucky you can take a plane from Muscat and fly down to Marmul airport, an hour’s flight over a dry landscape, and then an hour’s bus ride gets you to Nimr and another 20 minutes or so gets you to the reed beds. Those less fortunate have to endure a day’s drive through roads that wind past old castles, sandy wastelands and the occasional village while the dust gathers on the windshield and the heat pours through the windows.

Eventually you see a shimmering expanse of blue water and green reeds built between two wadis, as unexpected and welcome as a mythical oasis, covering more than 360 hectares, something that may double in size in the future.

Here the ultimate desert fantasy is being turned into reality. Wastewater, which would normally be pumped back into oil wells, is being treated in an environmentally friendly way through a series of gravity-fed plant filtering beds. >>

The project is managed by Petroleum Development } One of the team monitoring the water purification process.

Hectares BIG360

2,000metres deep


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FuTurE ENErgy 01

>> oman (PDo), Shell’s partner in the country, and Bauer nimr as subsidiary of the german Bauer group and could offer a breakthrough in the way that the industry treats water worldwide.

“nimr is the highest oil producer in oman, but also the largest water producer in oman,” says Badar al-Sharji, nimr cluster engineering team leader at PDo. “For every barrel of oil, we pump nine barrels of water. the amount of water we are producing is huge. normally we dispose of it in deep water well aquifer, which is expensive, requires a lot of energy and puts co2 into the air.”

the water is contaminated with metals, ore and magnesium, and is also very salty. “You name it, it contains it,” says mr al-Sharji. “So what do we normally do with it? Pump it 2,000 metres deep, below where it came from so it doesn’t interfere with the water aquifer. then we realised we should aim for a more friendly way of disposing of this water, using gravity and less pumping.” Bauer nimr successfully tendered for the project of designing and running a wastewater treatment plant. overlooking the reed beds, terence Shelby, Plant manager of the nimr Water treatment Plant, explains some of the procedure. “here you can see the water runs down through the reed beds, is cleaned of hydrocarbons and heavy metals, and we end up with relatively clean water >>

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>> at the bottom of the reed beds,” he says. “At the moment we are holding this water in a reservoir system, but soon we will evaporate it to produce industrial salt.”

According to Mr Al-Sharji, the beauty of the project is that it combines saving money with social values. “Of course we wanted to save money because it takes a lot of energy to pump the water so deep,” he says. “But because we are in the Middle East where there is a water shortage, we wanted to do something with the water.” The first contract for Phase 1 to process 45,000 cubic metres of water per day was awarded in November 2008, and the area became operational in November 2010. Phase 2, 50,000 per day started almost immediately.

The wastewater is first skimmed, leading to the separation of some oil that goes back to PDO for use. Then it is skimmed again to extract more oil, finally it is fed gradually into the reed beds.

“These reeds traditionally grow on dirty water and they act as a filtration mechanism,” says Mr Al-Sharji.

“As you go from one terrace to another, by the time you get to the fourth terrace, the water is closer to drinking water. But it still has some metals and the salinity is high. Next stage is to go to the evaporation part, where the salt will be left which can then be used for industrial purposes such as drilling for oil.”

At the moment Oman imports salt for drilling purposes so this will be yet another added saving.

The plant is currently purifying around 95,000 m3/day of contaminated water every day, achieving a level of purification of 99.5%. Furthermore, biomass is also produced and could be used in the future to run a small-scale power generation project.

Additionally, one day this area might be a haven for birds as they migrate from Africa and Europe, attracting birdwatchers from all over the world. At the moment it is a successful example of how to turn a liability into an asset, saving energy, money and the environment all at the same time. “The area of the reed beds will grow larger,” says Mr Al-Sharji. n

“ NIMR IS THE HIGHEST OIL PRODUCER IN OMAN, BUT ALSO THE LARGEST WATER PRODUCER IN OMAN”


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FuTurE ENErgy 01

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THE PLANT IS PURIFyING AROUND 95,000 m3 OF CONTAMINATED WATER A DAy


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gAS CAMpAIgN 01

| Gas plant Sur Oman.

And with the exception of qatar, just about every country has to make a number of big decisions to make if it wants to resolve the crisis. “Each of the countries in the region has an issue with the supply of gas,” says Mounir Bouaziz, vice president upstream international commercial MENA at Shell. There are a number of reasons for this. Historically much of the gas in the region was seen as a nuisance. Gas was either flared or used for re-injection into oil wells, or sold cheaply to encourage local industry, particularly to create a petrochemicals industry. As Justin Dargin, an energy and Middle East scholar at the University of Oxford points out, “natural gas is the backbone of industrialisation in the Mena region”.

Using gas as a catalyst to spark a petrochemicals industry is just one of the reasons why there is a shortage of natural gas. Ironically, selling gas cheaply to local customers has also prevented further investment to find new supply. “The petrochemical industry has benefited from low prices,” says Ali Aissaoui, a senior consultant at Arab Petroleum Investments Corporation. >>

gAS SuppLy IN THE MENA rEgION

THE GOLDEN AGE OF GAS

The governments of the Middle East and North Africa find themselves in a dilemma. Many of the countries, even some of those with massive resources of natural gas in the ground, are facing a domestic gas shortfall. In other words, the world’s largest energy supplier has turned into a giant consumer.

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>> “Governments need to claw some of these subsidies back so they can use them to subsidise other things.”

One positive reason for the lack of gas available is the tremendous economic growth in the over the past 20 years, which has seen domestic consumption increase dramatically.

A “golden age” for gas“The Mena region is becoming one of the

most electricity intensive regions in the world,” says Leila Benali, a director at IHS CERA. “But the gas situation shouldn’t just be seen as a challenge, we should also look at the opportunities.”

This opportunity is why some industry analysts are calling this a “golden age” for gas. For the first time in its history, Shell is a larger gas producer worldwide than an oil producer. But is this really a golden age of gas in the MENA region? Or if not, is there the will to make it one?

Ali Hached, a senior adviser to the Minster of Energy and Mines in Algeria, thinks there is no golden age in gas at the moment. “In the short-term, I would say no,” he says. “Demand for Algerian gas

“ THE GAS SITUATION SHOULDN’T JUST BE SEEN AS A CHALLENGE, We ShoUlD alSo look at oPPoRtUnitieS.”

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gAS CAMpAIgN 01

is down in Spain, Italy and France. The United States has already disappeared as a market. But in the long-term, the prospects are good.”

But how did a region with huge gas resources have to turn to burning crude oil to power electricity generators or consider importing LNG from its neighbours?

Ahmed Mouti, head of strategy at Shell explains. “The region has always relied on associated gas, the gas that you find in an oil well. At first it was a nuisance, then a use was found for it, then it became important. But as an oil well is pumped, so does the gas decline, as well as a need to reinject the gas to produce more oil.” In most places there was little or no investment in non-associated gas. “That legacy is now acute,” continues Mr Mouti. “Governments either under invested or did not have the gas in the first place, or it was difficult to extract or was sour, which makes it more costly to produce.”

SolutionsBefore countries can consider either

importing LNG or considering developing new

gas fields, there is one of the most difficult of all matters to resolve. How to deal with the issue of subsidies? Cheap and plentiful gas has been used both to build a petrochemicals industry and to provide a population with fuel. How do you wean a country off subsidies and make it pay a market rate? Some countries charge below $1 per MMBtu, while imports of LNG can cost about $16 for the equivalent.

“It’s difficult to reduce subsidies,” says Mr Hached. “It’s very difficult. It’s a problem, it’s a fact, and you need to live with that. We need to do it, but it’s a problem.”

Not everyone agrees that the problem is insoluble. Dr Bassam Fattouh, a director of the oil and Middle East programme at the Oxford Institute for Energy Studies insists that it can be done, even though it will not be easy or straightforward. “The most important thing is to change the mindset,” he says. “It is difficult and politically sensitive. The key is communication, communication, communication.”

Subsidies have successfully been reduced in some countries, such as Egypt and Iran. >>

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LOCAL DEMAND IS GROWING AT

PER yEAR


>> The important thing is to sell the message to the population.

“Subsidies create a distortion,” says Mr Aissaoui. “Who benefits the most from cheap prices? It tends to be the richest, they have the biggest cars, the most air-conditioning and the largest swimming pools.”

More supplyAssuming that governments can convince their

population of the need to end subsidies – perhaps by redirecting them – the next need is to find more supply. In theory there is no shortage of that in some countries. However, not only are some of the available resources more expensive to produce than the domestic prices would allow – in other words, either prices need to rise or the gas will be sold at a loss – but they are also technically challenging.

According to Mr Hached, this is where the International Oil Companies (IOCs) come in. “In order to maximise the value of resources, the option is to partner with IOCs. Why? Two main reasons. We need to learn more, we need the technology and we can get this through a sophisticated partnership. Second, we need investors. Big companies can invest.”

There are few better examples of this than Shell’s involvement in qatar. Along with the $19 billion Pearl Gas-to-Liquids project, Shell is a shareholder in the qatargas 4 LNG project and is exploring for new gas in the pre-Khuff geological horizon. Shell is qatar’s the largest foreign investor.

“qatar is blessed with a significant conventional gas resource,” says Wael Sarwan, Shell’s Executive Vice President qatar and Managing Director of the

Pearl GTL project. “There is a North Field moratorium until 2015, there is always talk of will it be longer or otherwise. There are no new commitments for the North Field field for the time being in the interests of ensuring that this great natural resource of qatar’s is healthy for many decades to come.”

qatar supplies quite a few places worldwide with natural gas as LNG. But in the region, qatari LNG is supplied currently only to Dubai on a long-term contract, and the only existing pipeline is the Dolphin project which takes North Field gas to Abu Dhabi and on to Oman. In the 1980s there was talk of pan GCC gas grid, but that not materialized yet. There have been a lot of LNG negotiations, with possibly qatar supplying Kuwait on a long-term basis, but that has not happened either so far.

“More and more you are seeing a potential market develop and you will see more in that direction,” says Mr Sawan. “Gas is attractive both environmentally and from an affordability perspective. It is half as expensive as coal, there are 250 years of gas available with all the new shale gas that is being found, which makes it attractive to buyers, who can be confident that there is no shortage of supply.”

Few doubt that more supply is needed to satisfy this demand, from other sources than qatar. Algeria is planning to launch two new trains next year, although according to Mr Hached, much of the gas will go to Asia. However, local demand is growing at 5 per cent per year. “The challenge is to remain a major exporter,” he says. “We have shale gas which we have not yet exploited. In Algeria we tend to pay more attention to price than to volumes,

we want to maximise the value of gas.”That is at the heart of the dilemma: how does

a country maximise the value of its gas when it needs to sell it cheaply locally? The next ten years promises to be very interesting in the gas business.

“I am extremely optimistic about the future of gas in the region,” says Mark Carne, Executive Vice President of the Middle East and North Africa at Shell. “It’s difficult to see a world not dependent on fossil fuels in the next 20 or 30 years, and gas is the cleanest of the fossil fuels. Industry will start switching to gas because it is both cleaner and more keenly priced. Every country has its own views and drivers that it will need to manage, but directionally we are optimistic, there is a big bet on gas being the fossil fuel of the future.” n

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} Dick Benschop, President Director Shell Netherlands.

“ IT’S DIFFICULT TO SEE A WORLD NOT DEPENDENT ON FoSSil FUelS IN THE NExT 20 OR 30 yEARS”

gAS CAMpAIgN 01

GAS IS THE CLEANEST OF THE FOSSIL FUELS

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INNOVATION 01

� Rashid Mudhafar and the air car.

| The Air car.

It is not the longest car in Abu Dhabi, less than three metres in length; nor is it the fastest, with a top speed of just 75 kilometres an hour. It is also cramped, with room for only a single slim driver, has no suspension, no air-conditioning, and not even a radio. It cost just AED 70,000 ($19,000) to build and at less than a metre tall, has only a slim chance of making it up the Sheikh Zayed Highway without being run over unnoticed by a large 4-wheel drive.

However, on one count it is perhaps the most remarkable vehicle in the United Arab Emirates: powered by a small Hatz engine, it is capable of covering more than 700 kilometres from a single litre of diesel, enough to drive up and down from Abu Dhabi to Dubai more than five times.

The car was nicknamed “Air” because of its lightness and aerodynamics by the seven students from Abu Dhabi’s Men’s College who conceived and built it. They competed in this year’s Shell Eco-marathon Asia 2012, held at Kuala Lumpur’s International F1 Circuit at the beginning of July, one of more than a hundred entrants.

The idea for the Shell Eco-Marathon originated in 1939 as a friendly wager between Shell scientists to see who could travel furthest on a single litre of fuel. It has now grown into a global competition that encourages students to design, build and race ultra fuel-efficient vehicles in a competition to see which team can achieve the greatest distance on the least amount of fuel. >>

“ WE CHOSE THE DIESEL CATEGORy,” SAyS RASHID. “WHy? BECAUSE DIESEL GOES FURTHER”

ECO CArTHE MOST REMARKABLE VEHICLE IN ABU DHABI

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} Rashid Mudhafar offers a sense of scale while dreaming about the air car!

>> Rashid Mudhafar is a member of the team who helped build Air in the workshop. The tyres come from Wolfi’s bicycle shop in Dubai, the engine is a Hatz diesel single cylinder compacter. Why diesel?

“We chose the diesel category,” says Rashid. “Why? Because diesel goes further, look at everybody is Europe, they all drive diesel cars, they go further without modifications. Also, there were only six teams that participated in the diesel category.”

The body is made of aluminium and has a fibreglass body. Each vehicle must have brakes, wing mirrors, three emergency stop buttons and a light to show if you are using the starter motor to gain an unfair advantage. “If the judges see you doing that you are disqualified,” says Rashid.

After six months’ work the team travelled to Kuala Lumpur to compete. “At the last turn of the last lap we had a problem with the engine mountings and the chain came off. But according to our calculations we could cover 700 kilometres per litre. We would have won if we had completed the course, or at least been in the top three.”

Two issues counted against the team. First, they had little time for testing. Second, they had not been expecting a hill, which they think contributed to the

strain on the engine mounting that led to the chain coming off.

“It was a great experience, we met the brilliant minds of Asia,” says Rashid. “Once we had checked our vehicle, we went round the pits and looked at all the other cars. We were struck by the different designs. Some did a great job, some we thought we had done better. Some cars were very small. Ours was a stretch limo in comparison because we had a tall driver.”

For the first time in the event’s history, teams from universities in the Middle East took part in the competition, including participants from the American University in Beirut, two teams from qatar University and delegations from Basrah University in Iraq, Ain Shams University and Cairo University from Egypt, the American University of Sharjah from the UAE and Sultan qaboos University from Oman.

Rashid usually drives a large Ford Tundra 4WD, quite a contrast from the small eco-friendly car he helped build, but hopes one day to be able to “afford a Prius”. He is studying for a master’s degree at Masdar Institute, but hopes to enter the competition next time when it might be held in qatar. “I would do it again,” he says. “Why not? Next time we’ll make the vehicle smaller and lighter, maybe using carbon fibre.” n

The body is made of aluminium and has a fibreglass body

700 KMFROM 1 lITrE OF DIESEL

Each vehicle must have brakes, wing mirrors, three emergency stop buttons and a light

The tyres come from Wolfi’s bicycle shop in Dubai

The engine is a Hatz diesel single cylinder compacter


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INNOVATION 01

“ IT WAS A GREAT ExPERIENCE, WE MET the BRilliant minDS oF aSia”

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Youssef Saleh can hardly remember a time when he wasn’t dreaming about working at the Qatar Science and technology Park in Doha. he watched it being built as he lives nearby, and imagined how it might be to work in its tall ceilings, long corridors and futuristic shapes. he had listened to the Qatari leadership stress the importance of building a knowledge economy, and wanted to be part of it.

his wish was fulfilled. in april 2008 the Qatar Shell Research and technology centre was opened, with a commitment to invest $100 million over ten years on technology that might support Qatar’s gas industry, particularly related to the Pearl gas-to-liquid project. His own large laboratory

“Sometimes they say if you have a target you will reach it,” says mr Saleh. “We were the first here, and the most active company working very closely with the science park authorities. We found ourselves sitting here while it was still being finished. i was the first person to put my office in this building, even before the science park team themselves.”

mr Saleh took a degree in chemistry, so for him not only is this an environment that he feels comfortable in, but it is like having his own large laboratory. Shell has other research centres around the world, most notably in amsterdam, houston and Bangalore, india, but this is the largest research and development centre in the gcc countries.

along with the laboratory, there are four smaller labs where experiments are taking place. two of these contain mini versions of the Pearl gtl plant, developing and testing new types of Fischer-tropsch catalysts. >>

QATAr SCIENCE AND TECHNOLOgy pArK

THE TIME OF yOUSSEF’S LIFE

} youssef Saleh walks through the qatar Science and Technology park Doha.

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INNOVATION 01

“SOMETIMES THEy SAy IF yOU HAVE A TARGET yOU WILL REACH IT”

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“WE WANT TO CONTINUE TO BRING INNOVATION AND EVOLVE ITS WORK, BUT WE ARE VERy PLEASED WITH HOW IT IS RUNNING AT THE MOMENT.”

~ qatar Shell Research and Technology Centre.

>> “the right composition of catalyst will give you the right conversion of gas to liquid,” he says. “But the decision of which catalyst to use is taken by Pearl gtl. We make suggestions. each catalyst lasts about three years, so we are testing ones that might be used in the future. We also do quality control.” Sulphur

there are two other experiments taking place. one of the outputs of Pearl gtl is large quantities of sulphur. the laboratory has completed a series of experiments that make concrete using sulphur. the technology is proven, it generates a lower co2 footprint than Portland cement and uses indigenous Qatari raw materials.

“the only problem is that right at the moment it is more expensive to produce, nearly 50 per cent more expensive, because of the global supply-demand balance of sulphur,” says mr Saleh. “everybody liked the idea and the product, there is nothing we can do now. When the price of sulphur falls, it will be attractive to produce it. at the moment china and india are buying a lot of sulphur for fertilizer and chemicals and supplies are struggling to keep up, but this may change.” re-use of water

the final experiment is looking at ways to re-use the water from Pearl gtl. Working in partnership with the ministry of environment at a farm in Rawdat al Faras, Shell has built a Reverse osmosis facility to treat the water, and is then assessing its impact on trees, soil and the build-up of salts.

there are about ten researchers at Qatar Shell Research and technology centre, about a quarter of which are Qatari. one of the aims is to encourage young Qatari scientists, so the centre works closely with Qatar University and texas a & m University at Qatar, as well as other universities in the region including Sultan Qaboos University in oman and seats of learning further afield such as imperial college in london.

mr Saleh is planning further experiments. he wants to do research into seismic mapping, a technology that helps find oil and gas, and also on how to increase the value of the end product from Pearl gtl, such as aviation fuel. each experiment takes at least two years to complete.

A COMMITMENT TO INVEST$100 MILLION OVER TEN yEARS

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INNOVATION 01

as the largest foreign investor in Qatar, Shell is keen to align itself with the ambitions of the country, and pursue projects for the long-term. “We have pulled together a technology platform that is very much linked to what we do here, including catalysts, water issues, looking at how best to make use of by-products such as sulphur,” says Wael Sawan, Shell’s executive Vice President Qatar and managing Director of the Pearl gtl project. “We are also looking at carbonate reservoirs and the storage of co2 in a project at imperial college in london, financed by Qatar Petroleum and Shell, with the support of the science park.”

mr Sawan is equally excited by the dialogue with Qatari universities to develop talent, as well as links to local schools. “this is the gtl capital of the world,” he says. “it is good to inform the public and attract some of that young talent into ventures in Qatar, and we also use the Qatar Shell Research and technology centre as a learning centre for our Shell staff. We want to continue to bring innovation and evolve its work, but we are very pleased with how it is running at the moment.”

in the laboratory amal al ghafri, a graduate of Qatar University, is analysing a beaker of water. She has been working there since august 2008, and is very happy with the work and the conditions. “We have lots of instruments,” she says. “We have everything we need. i like everything here.” n

} Sulphur.

� Wael Sawan, Shell’s Executive Vice President qatar on the roof of Shell Hq, Doha.

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INTErVIEW 01

| Charles Watson photographed near the Albert Memorial, Kensington, London.

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It seems appropriate to meet Charles Watson near the Royal Geographical Society in London’s South Kensington. Here travellers either embark on journeys in a blaze of publicity or return with straggly beards to recount their adventures in hushed halls. Livingstone, Stanley, Shackleton and many others are forever associated with this part of Kensington Gore. Some never came back: Gino Watkins’ canoe hangs from a hook on an upstairs wall, although his body has never been found.

Instead of using a team of porters or an exotic form of transport to traverse the Silk Route, the ancient trading road linking China via Afghanistan and Iran to the Middle East and Europe, the 56-year-old Mr Watson travelled alone, with a budget of just 50 American dollars a day, and no fixed itinerary.

What inspired Shell’s former Middle East head, now an independent consultant, to undertake such an arduous journey?

“I was born in Malawi, so I guess I have always been interested in travelling,” he says. “I dreamed of Samarkand, and minarets and wood smoke of an unknown and mysterious part of the world on the other side of the Himalayas. We all know about Delhi, but what was on the other side?” >>

When the former Middle East head of Shell went travelling on 50 dollars a day, he discovered the region is about two things in particular: Islam and energy.

TrAVELLINg THE SILK rOuTECHARLES WATSON’S BIG ADVENTURE

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~ Lake near Cuma, Azerbaijan.

� Azerbaijan Bus.

>> When he was younger he travelled from Morocco to Athens, and lived for a while in Algeria in his early 20s. Then grew a desire to complete what he calls the ‘Islamic band’, which stretches all the way from the Maghreb to China.

“When you’re working in a big company, how do you relax and get a view of the world when you are working like a maniac?” he asks. “My answer was taking a low budget trip.”

He began in Almaty, Kazakhstan, then went through Kyrgyzstan across the high passes of the Tien Shan mountains into Western China. Then back over by Tajikistan and across Uzbekistan, Turkmenistan, Azerbaijan, along the foothills of the Caucasus mountains to Georgia, then across Turkey and finally to Greece. He travelled as opportunity and budget allowed: in buses, taxis, hitchhiking, train, and by boat across the Caspian, even walking on occasions. Overall the journey took two and a half months.

Although he carried just a rucksack and a change of clothes, he also took a guidebook. Did you alert Shell? “yes, especially the local office covering Uzbekistan and Kyrgyzstan five years ago. Uzbek rebels had just killed 20 people, but generally I travelled without telling anyone, but I always knew Shell was there and everybody knew

Shell. It’s an important point. Everybody knows Shell, it’s very comforting.”

The Silk Route has many tributaries. Mr Watson’s inspiration was Colin Thubron’s Shadow of the Silk Road and Fitzroy MacLean’s Eastern Approaches. “If you just read those two books and you have any sort of travelling adventure in you, you don’t need any more excuse. I followed part of Thubron’s trip but not all of it.”

Islam spread very rapidly when it emerged in the 7th century. By the 9th Century it had travelled along the Silk Route and reached China. Then Samarkand was the most magnificent city in the world, with a population of more than 100,000.

“you can feel the great wash of civilizations, from Alexander the Great to Genghis Khan and later the Great Game and Soviets,” says Mr Watson. “It’s a lovely way to travel, very free, very inquisitive and fascinating. The fun thing was to engage with normal people in the street and enjoy the pleasures of Islam.

“When you are travelling on buses, the warmth of people and tradition of hospitality is very real and different from Europe. I’d stay in little hotels that cost $5 a night and eat with local families. It’s one of the reasons travelling is such fun. you can be just along the border of Afghanistan and you’re worried >>

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INTErVIEW 01

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}A smiling Charles Watson recalls his trip along the Silk Route.

~ On the road to Shymkent Azerbaijan.


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SAMARKAND WAS THE MOST MAGNIFICENT CITy IN THE WORLD, WITH A POPULATION OF MORE THAN

“ WHEN yOU’RE WORKING IN A BIG COMPANy, hoW Do YoU Relax anD get a VieW oF the WoRlD WHEN yOU ARE WORKING LIKE A MANIAC?”

>> and you don’t see anybody for 100 kilometres. I hired a driver and we came across a small yurt camp. I was worried, and became very uncomfortable. My reaction was how do I get out of here and will my satellite phone work? But almost always I was greeted with warmth and offers to share their food. It was an affirmation of the human spirit. For a corporate guy running around the world in planes complaining about queues it was great to see.”

Did he have any close shaves or times when he just felt uncomfortable? “The worst time was this summer in eastern Turkey. I had travelled from Baku, Dagestan, Chechnya, through the southern slopes of Caucasus, crossing into Georgia and up over into eastern Turkey. I was at a bus stop in Kars minding my own business. Then this guy came up and asked where I was from? I replied ‘salaam aleikum’ but he didn’t respond, just repeated the question. So I told him I was English, and he got really heavy, blaming England, America and the Jews, I was ready to leg it and leave my stuff. A crowd gathered, I stood up, then a guy arrived, got in between us, said calm

down, he’s our guest and things calmed down.”In between trips, Mr Watson found accounts of

his journey very useful for breaking the ice with ministers and business leaders. “I spent 90 per cent of the conversation talking about where I had been and where I was going. A lot of the stakeholders are fascinated by the rest of the Islamic world. Some rich Arabs go hunting in Uzbekistan, but they know little of the country. I found my travels a brilliant tool to develop my relationships. A lot of people haven’t travelled much, a lot of the Silk Route was controlled by the Soviets, the rest was dangerous, the journey was a tremendous door opener.”

Another of the things he enjoyed was learning the politics and seeing the consequences of the politics that you read about. “I realized what the Middle East is really about: Islam and energy. Being able to enjoy the culture of Islam and how the flux of energy impacted it was amazing.”

The final part of his Silk Route ended in Athens. Ironically, he found this the most dangerous place of all. He ran into a riot in October 2011, found it the most violent and disturbed, disjointed place on his travels, and he’d known Greece for 30 years.

“People were very unfriendly. Ordinary Greeks were furious about the problems of the EU. But I experienced the hospitality of ordinary people on my travels. you can read the temperature of a country by travelling.” n

INTErVIEW 01

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~ Tien Shen Mountains near Almaty Kazakhstan.

� yurt on the edge of Lake Balhash Kazakhastan.

~ Swallow flies around the inside of a yurt.

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