Envisioning a future powered by sustainable values
P.O. Box 26730, Manama, Kingdom of Bahrain, Tel: (+973) 17 731777 Fax: (+973) 17 731047, E-mail: gpic@gpic.com • www.gpic.com
H.M. King Salman bin Abdulaziz Al Saud Custodian of the Two Holy Mosques Kingdom of Saudi Arabia
H.M. King Hamad bin Isa Al Khalifa The King of the Kingdom of Bahrain
H.H. Sheikh Sabah Al Ahmed Al-Jaber Al Sabah Amir of the State of Kuwait
Gulf Petrochemical Industries Co. BSC (C)
Growing bigger with a commitment to excellence
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2018 Annual Report
Gulf Petrochemical Industries Co. BSC (C)
CONTENTS The Chairman’s Message The Board of Directors The Board of Directors’ Report to the Shareholders Corporate Governance Executive Management President’s Foreword GPIC’s Vision, Mission & Corporate Values
4-5 6 7-8 9 - 10 11 12 - 13 14
Sustainability
15 - 16
Safety, Security, Health and Environment
17 - 19
Management Systems
20 - 22
Production
23 - 25
Technical Services Support
26 - 30
Plants Maintenance
31 - 32
Procurement & Warehousing Department
33 - 34
Sales and Exports
35 - 36
Human Resources Development 37 - 39 Summer Camp Programme
40 - 41
Social Events & Activities
42 - 44
Corporate Social Responsibility
45 - 47
Ladies Working Committee
48
Exhibitions
49 - 50
Official Visits to GPIC Complex
51 - 53
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Gulf Petrochemical Industries Co. BSC (C)
The Chairman’s Message
H.E. Dr. Ahmed Bin Ali Al Sharyan Chairman
Gulf Petrochemical Industries Company (GPIC) has continued
The company has also received several prestigious awards,
on its steady path towards progress in 2018 with more local, Arab,
including the King Hamad Award to empower young people to
regional and international achievements, as well as keeping a
achieve the goals of sustainable development, as well as the
strong focus on safety and promoting sustainable development
Gold Medal of Excellence in Health, Safety and Environmental
through a commitment to social responsibility.
Protection awarded by the International Fertiliser Association in recognition of its unique record in the field of safety and
Thanks to God Almighty, 2018 saw many different and distinct
for observing the highest standards in health at all stages of
achievements, the most important being a new record in terms
manufacturing and production.
of the number of working hours without any lost time accidents. This amounted to more than 30 million working hours for company workers and contractors.
The company has also continued its efforts to support the community, which has enabled it to be presented with the Responsible Care Award in Occupational Health Safety and Security from the Gulf Petrochemicals and Chemicals Association, as well as the Arab Social Responsibility Award given by the Arab Network for Social Responsibility. During the year, GPIC has successfully passed the external audit requirements of ISO 9001: 2015 and ISO 14001: 2015; this was achieved after five days of intensive auditing by the British Standards Institute.
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2018 Annual Report
Gulf Petrochemical Industries Co. BSC (C)
In 2018, the company was able to record the highest annual production since the opening of its factories, reaching 1,503,808 tons of Ammonia, Urea and Methanol
On a technical level, during March and April, the company carried out comprehensive and scheduled periodic maintenance, which is one of the largest maintenance operations in terms of the quantity of work completed, the number of manpower and the budget. The maintenance was completed successfully in a safe, secure, efficient and productive manner. The close cooperation with the marketers of its products, the Saudi Basic Industries Corporation (SABIC) and the Petrochemical Industries Company of Kuwait (PIC) contributed to the smooth and continued export of the company's products. In 2018, the company was able to record the highest annual production since the opening of its factories, reaching 1,503,808 tons of Ammonia, Urea and Methanol record the highest annual production since the opening of its factories, reaching 1,503,808 tons of Ammonia, Urea and Methanol. Through integrated coordination with the marketers of its products, the company achieved a profit of $82.3 million in 2018. GPIC’s great record of accomplishment and achievements has had a positive impact within the world of petrochemicals and fertilizers, and this has given rise to GPIC hosting a variety of visitors from different sectors and countries. The company’s outstanding achievements would not have been possible without the grace of God and the support of our wise leadership, which paved the way for its success. His Majesty
King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, His Royal Highness Prince Khalifa bin Salman Al Khalifa, the Prime Minister and His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister deserve all our thanks and gratitude. Thanks also to all of Bahrain’s government institutions and our shareholders for their role in the company’s operational and marketing success, Bahrain Oil & Gas Holding Company, the Saudi Basic Industries Corporation (SABIC) Kingdom of Saudi Arabia and the Petrochemical Industries Company, State of Kuwait (PIC). I would also like to thank and appreciate the close cooperation we have received from my esteemed Board of Directors'. Their policies and professionalism have driven the company's success and prosperity. I cannot fail to acknowledge the outstanding role played by the President of the Company, the members of the Executive Management and all the employees, for their loyalty, sincerity and hard work, the results of which have gone towards the outstanding results achieved.
Dr. Ahmed Bin Ali Al Sharyan Chairman of the Board of Directors
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Gulf Petrochemical Industries Co. BSC (C)
The Board of Directors
1. H.E. Dr. Ahmed Bin Ali Alsharyan Chairman
5. H.E. Mr. Ahmed Mohammed Alumar Board Member
2. H.E. Mr. Yousef Bin Abdulrahman Alzamel Deputy Chairman
6. H.E. Mr. Ghanim Nasser Alotaibi Board Member
3. H.E. Mr. Ibrahim Mohammed Almusaiteer Managing Director
7. H.E. Mr. Abdullah Saeed Almutairi Board Member
4. H.E. Shaikh Fahad Bin Salman Al Khalifa Board Member
8. H.E. Mr. Shafi Taleb Alajmi Board Member
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Gulf Petrochemical Industries Co. BSC (C)
The Board of Directors' Report to the Shareholders
With
the advent of the New Year, the Board of Directors' of Gulf Petrochemical Industries Company (GPIC) is pleased to present its shareholders with its annual report, including the outstanding achievements of the company during 2018, as well as its activities related to occupational safety and health, the environment, financial, technical, administrative and marketing. Thanks to God Almighty, 2018 was characterised as a year of outstanding achievements, as the company was able to continue to take the lead in occupational safety, health and environmental initiatives; this was accomplished by continuing 100% focus on implementing and putting into practice all the latest SSHE policies and procedures.
During March and April, the company carried out comprehensive and scheduled periodic maintenance, which is one of the largest maintenance operations in terms of; the quantity of work completed, the number of manpower and the budget. The maintenance was completed successfully in a safe, secure, efficient and productive manner. In October, there was a successful Shareholders’ Joint Audit and all company departments cooperated in providing all the necessary requirements and responses to observations. The company also achieved record production levels and created a new record in urea manufacturing during July and August. Total production during this period was 120,456 metric tonnes,
During the year, the company was able to achieve a new record in the number of hours without a work-related accident. This amounted to a total of over 30 million hours without a lost time accident for employees and contractors. The company has therefore been free of accidents since May 2002.
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Gulf Petrochemical Industries Co. BSC (C)
The Board of Directors' Report to the Shareholders
Because of the impressive record of continuous and safe operations, strict measures to regulate expenses and continuously develop its workforce, taking into consideration the global economic challenges, the company has been able to achieve a net profit of $82.3 million an increase of 20,000 metric tons over what had been planned.
During 2018 GPIC also obtained halal certification for its
A new record of daily production of urea of 2,078 metric tonnes
methanol products granted by Halal Certification Services
was also achieved during 2018. As a result of the impressive
(HCS) after going through a rigorous evaluation and analysis of
record of continuous and safe operations, strict measures to
the high quality methanol product.
regulate expenses and continuously develop its workforce, taking into consideration the global economic challenges; the
On this occasion, the Board of Directors' is pleased to take the
company has been able to achieve a net profit of $82.3 million.
opportunity to extend its sincere thanks and gratitude to His
As a result of its strong commitment to empowering young people, the company was awarded the King Hamad Award to empower young people to achieve Sustainable Development Goals. It also won the Gold Medal for Excellence in Health, Safety and Environmental Conservation which was awarded by the International Fertilizer Association (IFA) in recognition of its unique record in the field of safety, and for complying with the highest standards in occupational health and the environment at all stages of manufacturing and production.
Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, His Royal Highness Prince Khalifa bin Salman Al Khalifa, The Prime Minister and His Royal Highness Prince Salman Bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, for their continued support and constant efforts in providing any requirements towards developing the oil and gas industry and its derivatives in Bahrain. The Board of Directors' also wishes to thank its shareholders the Bahrain Oil and Gas Holding Company, the Saudi Basic
In terms of sustainability and corporate social responsibility,
Industries Corporation (SABIC) and the Petrochemical Industries
the company was awarded with the 1st prize of the Arabia
Company (PIC) of Kuwait for their continued commitment to
CSR Award for the major companies organised by Arabia CSR
working towards the continued success of the company.
Network. In conclusion, the Board appreciates the dedicated effort of In addition, the company was presented with a safety award from
GPIC’s President, Executive Management and all employees,
the Royal Society for the Prevention of Accidents (RoSPA), as well
who have worked as a team and the Board commends their
as being awarded the Responsible Care Award in Occupational
efforts, the results of which have gone towards the outstanding
Health Safety and Security from the Gulf Petrochemicals and
results achieved during the year.
Chemicals Association (GPCA).
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2018 Annual Report
Gulf Petrochemical Industries Co. BSC (C)
Corporate Governance
GPIC's Corporate Governance system is based on three
Committees’ Composition
fundamental components namely; Principles, Code of Conduct and Policies. The system is based on our shareholders 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 other stakeholders.
All Committees' are comprised of at least three Directors. Each Director is nominated by Saudi Basic Industries Company (SABIC), Petrochemical Industries Company (PIC) and NOGA Holdings, representing the three shareholders.
The company's Corporate Governance principles have been developed primarily from the company's Memorandum and Articles of Association, the Bahrain Commercial Companies Law and Bahrain’s Code of Corporate Governance. These Corporate Governance Principles are responsible for providing a basis and a system of principled goal-setting, effective decision making and ethical actions, with the objectives of establishing a fundamental corporate entity that - on a long term basis - drives value creation to the company's shareholders and promotes sustainable business conduct in line with the principles outlined in the company's Articles of Association. The Corporate Governance Policy of the Gulf Petrochemical Industries Company and Bahrain’s Corporate Governance Code resulted in the formation of three high level committees; the Audit, Finance and Risk Committee, the Remuneration, Nomination and Governance Committee and The Company’s Strategy Implementation Committee – 2030. These three committees are created to assist the Board of Directors' in the effective performance of their governance and oversight responsibilities.
Role of the Remuneration, Nomination and Governance Committee The Committee is responsible for overlooking the overall remuneration and nomination process, as well as ensuring the strength of the organisation’s governance. The Committee is also responsible for ensuring compliance with the Kingdom of Bahrain’s Corporate Governance Code regulations and mandates. Role of the Audit, Finance and Risk Committee The purpose of the Committee is to assist the Board of Directors in independently ensuring and maintaining oversight of Gulf Petrochemical Industries Co. (“GPIC”). The Committee is tasked with overseeing such responsibilities, as the integrity of the company's financial statements and financial reporting, internal control and risk management process, internal audit function, independence and performance of the external auditors, compliance with ethics policies and legal and regulatory requirements, governance and other matters as enumerated in the Audit, Finance and Risk Committee Charter.
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Gulf Petrochemical Industries Co. BSC (C)
Corporate Governance
The internal audit function helps the Company accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal controls and governance processes Role of The Company’s Strategy Implementation Committee – 2030 The purpose of The Company’s Strategy Implementation Committee – 2030 is to conduct a full review and studies of all major projects, as well as reviews and studies of all investment opportunities. The creation of this committee will help ensure no major projects or investment opportunities have been overlooked and that the company has an optimum investment portfolio. Internal Audit Function Audit Section is an independent, objective, assurance and consulting activity designed to add value and improve GPIC's operations. The internal audit helps the Company accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal controls and governance processes. The Internal Audit Function contributes to a sound control environment through monitoring the prescribed control procedures. An effective internal audit function can assist all members of the Management in effectively discharging their responsibilities by providing them with analysis, appraisals, recommendations and pertinent comments concerning the activities reviewed. In addition, it can provide constructive suggestions for improving the systems. The internal audit function can play a prominent role in enhancing the overall control environment within the Company.
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Annual Report 2018
When an organisation reaches a certain size or complexity such as GPIC, it becomes a challenge for Senior Management to ensure that all the sections within the business are being effectively managed to achieve the Company’s objectives and are performing economically, efficiently and effectively. The Internal Audit Function effectively established and resourced, provides reasonable assurance to the Board and Management of GPIC on whether the controls to manage key risk areas are designed and operating effectively or identify important improvement opportunities where Management actions are necessary. The GPIC Internal Audit section reports directly to the Audit, Finance and Risk Committee. For logistical reasons, the Internal Audit Section reports to the President for matters relating to time and attendance, leave, travel and other administrative requirements.
Gulf Petrochemical Industries Co. BSC (C)
Executive Management
Sitting from left to right
Standing from left to right
Mr. Adnan A. Razzaq Al Mahmood Information Technology and Knowledge Manager
Mr. Jamal Ali Al Shawoosh Safety, Security, Health and Environment Manager
Mr. Fadhel Malalla Al Ansari General Manager Corporate Support
Mr. Ahmed Mubarak Alarabi Procurement and Warehousing Manager Mr. Bader Mohammed AlMansoori Technical Services Manager Mr. Khalid Yusuf Al Bin Ali Plants Operation Manager Mr. Zuhair A.Aziz Tawfiqi Corporate Communications Manager Mr. Jassim Ahmed Darwish Maintenance Manager
Dr. Abdulrahman A. Hussain Jawahery President Mr. Yasser A. Rahim Alabbasi General Manager Manufacturing Ms. Najat Mohamed Sharif Human Resources Manager
Mr. Jehad Ali Khalfan Finance and Marketing Manager Mr. Omar Naser Al Bastaki Chief Internal Auditor and Secretary to the Board
2018 Annual Report
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Gulf Petrochemical Industries Co. BSC (C)
President’s Foreword
Dr. Abdulrahman Jawahery President
We have ended 2018 with remarkable achievements not
complexity and volatility for our industry around the globe and
only for GPIC, but also for the Kingdom of Bahrain. Our 2018
we have faced many challenges given the extremely difficult
Turnaround, was successfully completed in a safe, secure, efficient
market conditions and economic volatility underpinning our
and productive manner, and our new Urea Formaldehyde plant
markets. However, our resilience to overcome these challenges
was effectively commissioned and started operations at the end
is down to our incredible GPIC team. The ideas, the skills and the
of December.
dedication of our workforce, continues to make GPIC a pioneer in best practice and sustainability – and has done so for the past
We have been through many developments during the year, in
39 years.
sometimes less than favourable circumstances and so 2018 was quite a year for all of us at GPIC. It has been one of uncertainty,
Notwithstanding this, we have also accomplished a huge amount. Safety is always our number one priority and of paramount importance to us, and this year we have had no LTA for either our employees or contractors.
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2018 Annual Report
Gulf Petrochemical Industries Co. BSC (C)
Throughout 2018, our entire business has continued to implement and seek out new opportunities in optimising costs, enhancing safety and, operating our plants with the utmost efficiency and effectiveness in production and quality of product Some of the many highlights of this year have been the awards
At the community level, everyone at GPIC recognises the
and recognitions we have received in the areas of occupational
importance of a sustainable and effective Corporate Social
safety and, GPIC continues to be an exemplary beacon of best
Responsibility strategy. Our employees have remained fully
practice in this regard. We are immensely proud to receive
engaged in developing, sharing knowledge and sponsoring key
awards such as; H.M. King Hamad’s International Award
initiatives to support and build our great country.
for Youth Empowerment in the private sector category for achieving the sustainable development goals, the British Safety
We ask Almighty God to enable us to continue succeeding as
Council International Safety Award, for the 11th consecutive
an organisation and as a country and, we thank our Kingdom’s
year, RoSPA International Sector Award from Royal Society for
wise leadership, which has enabled us to achieve all of our
the Prevention of Accidents (RoSPA), GPCA Responsible Care
tremendous success.
Award 2018 – Safety, Security and Health category, Arabia CSR Award - Large Category and the IFA Gold Medal Safety Award. Throughout 2018, our entire business has continued to implement and seek out new opportunities in optimising costs, enhancing safety and, operating our plants with the utmost
Dr. Abdulrahman Jawahery
efficiency and effectiveness in production and quality of product.
President
We know and understand that our future lies in our continued pursuit of operational excellence and in creating innovative new ways of working. GPIC continued to maintain its strong investment in people development throughout 2018, structuring effective training sessions and courses to build the capability of the company’s future leaders.
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Gulf Petrochemical Industries Co. BSC (C)
GPIC's Vision, Mission & Corporate Values
We move ahead, drawing strength from our vision, mission and values
VISION
MISSION
VALUES
To be a world-class petrochemical and fertilizer company of choice, recognised for excellence.
• To produce high quality
• Excellence • Integrity • Respect • Transparency • Safety • Professionalism • Social Responsibility • Creativity • Team Work
petrochemical and fertilizer products
• To grow through successful
partnerships and joint ventures
• To optimize the business in a safe,
sustainable and cost effective manner
• To embrace knowledge, harness
innovation and utilize best applicable technologies and practices
• To boost Stakeholders share value • To train and develop the Human
Capital to realize their full potential
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Annual Report 2018
Gulf Petrochemical Industries Co. BSC (C)
Sustainability
Empowering Youth for achieving Development Goals (SDGs)
the Sustainable
This year has been challenging for sustainability in many respects, but there have also been exciting developments in the sustainability landscape. We look back at GPIC’s efforts in mainstreaming the UN’s 17 SDGs in the Company’s Business Functions and also in reaching out to the community and exposing and empowering the younger generation to the SDGs. GPIC’s concerted efforts and continued focus on empowering youth for the SDGs were acknowledged, as GPIC was awarded the prestigious King Hamad award of youth empowerment for achieving the SDGs. By definition, "Sustainable development": a development that meets the needs of the present without compromising those of the future-begins with the respect for the future generation as an important stakeholder. The young people of today will mature in the next 15 years right alongside SDGs. They are the people who will experience the success or failure of the 2030 Agenda. Mindful of this fact, GPIC is engaging with the youth and children and exposing them to the SDGs. As part of this drive, GPIC’s Sustainability Reporting Committee and the Youth Committee have made several awareness presentations to students in Bahraini Schools and also to Industrial Students during their Internship program at GPIC. The theme of this year’s Family SHE Night was 'SDGs' and the children were invited to select an SDG of their choice and draw
a painting, as well as writing an essay on their understanding of the SDG. During the Summer Camp held at the GPIC Club, children were exposed to SDGs. Recently, during the release of fish in GPIC’s fish farm in the presence of UN Environment Regional Director, students wore T-shirts related to 'SDG 14Life below Water', enhancing their awareness on how important it is to preserve marine life for Sustainable Development. In continuation to our drive “Making SDGs a Reality“ at GPIC, we continue to enhance our Company's wider understanding of the 2030 Agenda and further align our business priorities to the SDGs. In March 2018 we published our 4th GRI Sustainability Report 2018 “Together we Do Better”. This report is our testimony of Transparency and Accountability, a Comprehensive Report on GRI standards, complying to the 21 Advanced level Criteria of the UN Global Compact, Communication on Progress (COP) and covering the other UN signature platforms, such as; 17 SDGs, Food and Agriculture (FAB) six principles and the Women’s Empowerment Principles (WEPs).
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Gulf Petrochemical Industries Co. BSC (C)
Sustainability
“For GPIC, sustainability has evolved to a strategic imperative that focuses on economic, environmental and social risks and opportunities.” Dr. Abdulrahman Jawahery – President As an outcome of our deep commitment to Climate Change in relation to COP21, GPIC’s Climate Change Committee, whose members are certified trained on IPCC GHG inventory software have issued the Company’s 2017 GHG Inventory report in 2018 and the next report will be issued in March 2019. GPIC’s leadership commitment and support for sustainable agriculture, food security and poverty eradication and its engagement with international organizations such as; UNGC, UN Environment, FAO, IFA, AFA, GPCA continued with significance. We continued to benchmark ourselves with the best in class and we were presented with, the Arabia CSR Award 2018 for the 4th consecutive year in the Large Organisations Category for our outstanding achievements in Corporate Social Responsibility and Sustainability within the MENA region. Winning the Arabia CSR award for the eighth time is a testimony to GPIC’s successful strategy of building a culture that has extended far beyond the traditional understanding of corporate philanthropy. It has taken on the form of proactive, hands-on engagement, to assist in meeting the myriad of social sector needs, in education, health, skills development,
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Annual Report 2018
poverty alleviation, women empowerment and infrastructure improvement. We ultimately know and believe that, through Sustainability leadership, innovation collaboration and accelerating youth empowerment we can guarantee a more prosperous and sustainable future for societies and our planet.
Gulf Petrochemical Industries Co. BSC (C)
Safety, Security, Health and Environment
2018 was another extremely successful year for GPIC in terms of Safety, Security, Health and Environmental (SSHE) excellence. In 2018 our biggest achievement and challenge was to complete the Maintenance Turnaround successfully in a Safe, Secure and Environmentally friendly manner. A daily peak manpower of 4000 regional and international contractor personnel along with GPIC carried out the jobs safely and efficiently without any accidents. At GPIC, we fully appreciate how complex the interdependency is when it comes to the relationships between a Company’s risk portfolio and the way it does business. The leadership at GPIC is fully committed to making the link between the ways of doing business and the Safety, Security, Health and Environmental (SSHE) management even stronger and more robust, so that doing business and Safety, Security, Health and Environment are one and the same process. With this commitment throughout the year, GPIC continued to enhance and strengthen its Safety, Security, Health and Environmental (SSHE) management systems including; training, capacity building, tabletop exercises and testing of its emergency response and preparedness. These continual improvement efforts further enhanced our behavioural safety culture and culminated in achieving a record 30 million working hours for its workforce and contractors without any lost time accident, exceeding 6093 days since our last LTA. All our operations were managed responsibly on
a sustainable basis throughout the year without any reportable environmental incidents. GPIC maintained its process safety performance through operational excellence, robust risk management, training and lessons learned and hence we did not have any Tier 1/ Tier 2 process safety incidents in 2018. Our Security management continued to be robust and resilient. On 4th December GPIC carried out a Major Port Facility Security Emergency Exercise. Considering the Maritime Ports Security Exercises in the industrial area and other ports in Bahrain, this exercise is the first of its kind combining Bomb threat & Forced Entry and was the biggest in scale in terms of the number of agencies participating in the exercise. Moreover, on 31st December GPIC carried out a Complex wide Emergency Evacuation Drill. With regard to its excellence in occupational health, safety and the environment, our GPIC President was presented with the National Safety Council - USA “CEO who gets it” Award. GPIC was awarded the GPCA Responsible Care Award in the Health and Safety category and the RoSPA and British Safety Council Safety Awards. Furthermore, GPIC was acknowledged for its excellence in Environmental Management and received the KSA Environment Award. GPIC continued with its leadership role in SSHE excellence at regional and global levels and has been actively involved and engaged with Regional and Global organisations such as; National Safety Council (NSC), Royal Society for the Prevention of Accidents (RoSPA), UN Environment.
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Gulf Petrochemical Industries Co. BSC (C)
Safety, Security, Health and Environment GPIC has engaged actively with government bodies on a National level for strategy formulation and legislation revision on environmental issues covering the Paris climate change agreement COP 21 and associated greenhouse gas inventory reporting. GPIC is also actively involved in; the implementation of the United Nations 17 Sustainable Development Goals, the National Energy Efficiency and National Renewable energy action plan, the Carbon Capture and potential future scenarios, and the Ozone depletion and Montreal Protocol national level initiatives and the way forward.
170 employees have attended Safety Media e-learning courses and 129 hours of Safety Media e-learning were completed in 2018. These courses are instructionally designed to engage staff for maximum knowledge retention, including full testing and risk analysis of employees. All courses are SCORM (Sharable Content Object Reference Model) compliant and CPD (Continuing Professional Development) certified, with the majority now achieving RoSPA accreditation.
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The SHE Family Night is one of the main annual events of the company and was organised this year in Ramadan with the Theme "Tell me what do you know about the Sustainable Development Goals (SDGs) and how can you contribute to one of the 17 SDGs that you like the most". This years event was held at the Gulf Hotel with the intent to motivate and promote awareness amongst employees and their families of safety concerns and enhance a culture of responsible care both at home and within the workplace. A “drawing and essay writing competition” was organised before the event in order to develop and further enhance creativity and SHE awareness within the large number of talented children and wives of the employees.
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In the quest of continual improvement GPIC’s SSHE Department underwent a number of Audits and Surveys, the most notable being the Joint Shareholders Audit, The Insurance Survey and the GPCA Responsible Care Peer Review. All the recommendations are in the implementation stage. The following is a list of significant SSHE achievements during 2018: Safety training continued to be provided for both Operations and Non-Operations employees. During 2018 there were 16 Modulised Emergency Response Training (MERT) sessions, attended by plants operation personnel.
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Replacement of existing conventional lights in process areas, non-process areas, buildings and streetlights with energy efficient LEDs has continued since 2013. 2561 LED light fittings were installed in 2018, with an energy saving of 373.88 MWH/year and a total reduction in carbon emissions by 200 tons per year.
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GPIC’s First Aid Training and Community Outreach Programme with the National Safety Council (NSC)-USA which started in 2012 is continuing, and to date we have trained more than 400 employees, contractors, industrial and university students, summer camp children, employees’ wives and others.
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Gulf Petrochemical Industries Co. BSC (C)
Safety, Security, Health and Environment As part of Post COP 21 requirements; GPIC’s Climate Change Committee used IPCC GHG Inventory software version 2006 and issued its third GHG Inventory Report in 2018.
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GPIC in cooperation with UN Environment and Ministry of Education continued with the Green Wave initiative that was launched in 2015. Through this programme, we sponsor and facilitate the planting of local trees at public schools in order to promote biodiversity awareness and encourage environmental stewardship. At each school, the students plant saplings, such as; pomegranate and olive trees. The campaign for the 2017/2018 academic year is now finished, with 20 primary, intermediate and secondary boys and girls schools participating. Since the launch of the programme in 2015, 70 schools have benefited with the distribution of 2,800 sapling trees in total.
For the fifteenth consecutive academic year, GPIC has sponsored the Ministry of Education/GPIC Environmental Research Programme for the GPIC Environment Award for secondary school students.
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As part of the health awareness programme GPIC’s Medical Center arranged several lectures to increase the employees’ health awareness on subjects like Breast Cancer, Diabetes, Cupping Therapy etc. Additionally, various health campaigns took place, such as; the GPIC Smoke-Free Campaign, Beat the Heat Campaign and an Obesity Management Programme.
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For their periodic medical examination, more than 323 employees were screened at GPIC Medical Centre during 2018.
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As part of corporate social responsibility, more than 84 GPIC employees donated 53 units of blood during 2018.
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To date we have recycled 144 tons of plastic, paper, metal cans and cardboard. Additional waste recycling points were introduced in the employee’s car park and the GPIC Club. During Turnaround 2018, an effective waste recycling programme was implemented. This has resulted in reduction of our carbon emissions by over 200 tons.
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Publicising environmental awareness amongst future generations progressed as planned. Our Engineers presented a number of environmental lectures in both public and private schools. The total number of students benefiting from this programme is more than 40,672, since inception in 2001. From 2015, Responsible Care awareness is also being communicated in addition to environmental awareness.
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Being a Responsible Care (RC) Company, GPIC actively participated in all the planned RC related initiatives, committees, conferences and workshops spearheaded by GPCA. Additionally RC metrics were reported as planned.
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GPCA Peer Review was undertaken as per the 2018 peer review plans as approved by the Responsible Care Committee. Gulf Petrochemicals Industries Company (GPIC) hosted the two-day review conducted by GPCA Member Companies’ Subject Matter Experts, this review was undertaken by a select team of experts from the GPCA Member companies to assess conformance of GPIC’s Health, Safety, Environment and Security management system to the GPCA Codes of Management Practice (CoMP). The scope was restricted to review of documents relevant to GPCA Codes of Practice. The primary reference was the self-assessment document submitted by GPIC, in line with the GPCA Codes of Practice (current version).
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Gulf Petrochemical Industries Co. BSC (C)
Management Systems
GPIC has established relevant Management Systems, Committees, Reporting Structures and Standard Operating Procedures which undergo regular internal audits and they are continuously improved and aligned to the specific requirements at any given time To enhance competitiveness in the Oil and Gas industry, which is witnessing rapid developments, it is necessary to keep pace with changing operational and management processes so that the industry becomes more efficient and effective. For this to happen, companies should improve and develop practical strategies and management systems to enable them to achieve positive results at the lowest cost and in the shortest possible timeframe. Therefore, evaluating and continuously monitoring the performance of management systems is a key requirement for companies at a time when pressures are ever increasing and business activities are becoming more complex. GPIC’s Executive Management Team emphasise the alignment of all business operations to the company’s overall vision and its drive for Sustainability. This is achieved through the relevant committees who steer the sustainable alignment of the company, defining responsibilities and framework conditions. All of our Business Operations are managed using defined targets and performance indicators in areas such as; innovation, supplier management, safety, product stewardship and environmental protection. On the basis of stringent internal auditing and analysis, GPIC has established relevant Management Systems, Committees, Reporting Structures and Standard Operating Procedures which undergo regular internal audits and they are continuously improved and aligned to the specific requirements at any given time.
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Annual Report 2018
GPIC’s Management and Committees hold periodic management meetings to review and monitor the performance and efficiency of its dual Integrated Management Systems (PAS 99), Responsible Care Management System (RC 14001), Information Security Management System (ISO 27001), Business Continuity Management System (ISO 22301), Energy Management System (ISO 50001) and others. The outcome of these meetings creates a roadmap for the future aimed at further improving and developing management systems as an ongoing process. In this context, the company succeeded in, and surpassed the process of a tripartite periodic review for the Integrated
Gulf Petrochemical Industries Co. BSC (C)
Management Systems
Management Systems (Business Continuity / Responsible Care / Information Security) which was conducted by a certifying company. The Integrated Management Systems certificates were renewed for the next three years.
There were approximately 60 internal audits conducted during 2018, covering various standards and requirements of different management systems. These audits were, and continue to be, one of the most important instruments used by GPIC towards
GPIC’s Resilience Committee is responsible for following up on the progress of these activities and is also responsible for reviewing Enterprise Risks and actions related to the revisions and validations of the standard specifications. The Resilience Committee ensures that the company is aligned to the required standards, the current situation of the company, the chemical industry and, the region in general. One of the most important activities of the committee during the year was to establish a comprehensive review of the Enterprise Risk Management. The Committee has also worked diligently to develop clear and well-defined goals for all departments and sections to introduce a periodic review of all possible business threats. The purpose of these reviews is to help the company to proactively discover any potential hazards in advance and, in case of any adverse event occurring, to trigger the required implementation plans to ensure no negative impact is experienced in the general conduct of day-to-day operations. In doing so, the Resilience Committee safeguards the company’s ability to fulfil its obligations to shareholders, clients, customers, employees, society and all of its interested parties, in the shortest time possible and at the lowest realistic associated cost.
Annual Report 2018
21
Gulf Petrochemical Industries Co. BSC (C)
Management Systems
The Management Systems Section is proud to confirm that all internal and external audits have been successfully concluded on schedule
its journey of continuous improvement. In addition, different certified bodies also conducted 7 external and independent audits on various standards during the year. All external audits concluded that the company was committed to implementing these management systems and fully compliant with Bahrain’s laws and legislations. The Management Systems Section is proud to confirm that all internal and external audits have been successfully concluded on schedule. All the members of the distinguished internal auditors’ team were honoured during the company’s annual celebration, in the presence of the company’s management and the Board of Directors, for their efforts and achievements. This was a boost to morale for the team and confirmed how important their work and roles are in establishing the strict adherence to the application of the management systems requirements. It also reflects their role in ensuring GPIC conforms to the required laws and regulations, organisational internal procedures at all stages and sections of the company’s business and, contributing to the organisation’s continuity of workflow and desired goals.
22
Annual Report 2018
Gulf Petrochemical Industries Co. BSC (C)
Production
Plants Operation Department
The year 2018 was another successful year, all Plants operated
in a safe, reliable and efficient manner whilst maintaining specified standards in terms of quality for all products.
Examples of major jobs carried out during Turnaround April 2018: Replacement of Waste Heat Boiler in the Ammonia plant
l
Replacement of Carbamate condenser in the Urea plant
l
Replacement of the Methanol Reactor Catalyst.
l
Replacement of the Ammonia and Methanol Reformer Catalyst.
l
Replacement of the Production Conveyor Belt
l
Upgrading the Urea plant digital control system to the latest Honeywell Orion system
l
As a part of enhancing the energy efficiency and reliability of the complex, two important projects were carried out successfully namely:
l
Utilising the Urea plant surplus low-pressure steam for the
n
Successful Commissioning of the Urea Formaldehyde Unit, which contributes in securing very important raw material for the manufacturing of Granular Urea.
n
All plants registered excellent records in regards to performance factors (On stream factor, Capacity Utilisation and Utilisation Factor). Turnaround 2018 was executed safely and successfully. All planned jobs (Capex, modification, inspection, preventive maintenance, corrective maintenance) were carried out as scheduled and the production resumed back as planned.
Methanol CDR Unit; this utilisation contributed to saving 26 KNm3 of natural gas per day.
Commissioning of the New Nitrogen Unit, which will help in having more flexibility and full control of the nitrogen inventory management.
n
All of the changes above added great value to plant safety, reliability and sustainable plant capacity. Year 2018 main highlights: The Urea plant completed 20 years of successful and sustainable operations (1998 – 2018) with a total production of 12.9 million metric tonnes. l The average daily production achieved during 2018 were as follows: n 1,265 tonnes/day of Ammonia; year total Ammonia production 421,200 MT n 1,945 tonnes/day of Urea; year total Urea production 657,929 MT n 1,230 tonnes/day of Methanol; year total Methanol production 424,679 MT l Urea plant registered the highest ever production during the 2018 summer months (July & August) with a total production of 120,456 MT. l Urea plant registered the highest ever monthly production of 62,592 MT (December 2018) l
Annual Report 2018
23
Gulf Petrochemical Industries Co. BSC (C)
Production The Ammonia plant completed 804 days of a continuous production run until end of April 2018. l The Methanol plant completed 670 days of a continuous production run until end of April 2018. l As a part of GPIC’s commitment towards encouraging and supporting the Bahrain economy, GPIC continued a sustainable supply of Methanol to the local market - 1,196 MT of Methanol sold in 2018. l
Performance factors: The following graphs indicate the sustained high-level performance of the plants. Onstream Factor % 100
Production figures
50
The table below gives a summary of the various budgets versus actual production figures.
0
Product
Budget (tonnes)
Actual (tonnes)
2013
2014
2015
2016
2017
2108
Variance Methanol
Ammonia
Ammonia
425,000
421,200
-0.9% Lower
Methanol
418,460
424,679
1.5% Higher
Urea
640,300
657,929
2.8% Higher
Ammonia to Urea
365,030
371,114 1.70% Higher
Saleable production
1,118,730
1,132,694 1.25% Higher
Total production
1,483,760
1,503,808 1.35% Higher
Urea
Capacity Utilisation % 150
100
50
0
1. The combined products are 1.35% higher than the budgeted figure. 2. Since 1985, a cumulative total of 13.98 million tonnes of Ammonia and 13.74 million tonnes of Methanol production has been achieved by end of December 2018. 3. Since 1998, 12.9 million tonnes of Urea production has been achieved by end of December 2018.
2013
Ammonia
2014
2015
Methanol
2016
2017
2108
Urea
Utilisation factor % 150
100
Production Performance 2017
50
Production Million (tonnes)
0 1.48 1.50
180
Methanol
2015
2016
2017
2108
Urea
0.37 0.32
0.42 0.42
0.42 0.42
Management systems:
30 0 Ammonia
Urea
Budget
24
2014
1.12 1.13
Ammonia
0.64 0.66
120 60
2013
Annual Report 2018
Actual
Methanol
Total
Saleable
Ammonia to Urea
The Integrated Management System, Energy Management System, Enterprise Risk Management System and Process Safety Management System were followed rigorously throughout the year. Both internal and external auditors audited them and the performance was judged highly satisfactory at all levels. The charts above reflect the same.
l
Gulf Petrochemical Industries Co. BSC (C)
Production Ships loaded during 2018
Exports: The Product Handling & Export section provided uninterrupted support by loading the cargoes within the allocated time throughout the year.
l
Throughout the year Ammonia, Methanol and Granular Urea were produced to the highest quality specifications, for premium markets. A total of 1.31 million tonnes of product was exported during the year 2018.
Energy consumption figures during 2018. 1. Ammonia plant cumulative energy consumption for the year was 9.03 GCal/t.
l
2. Methanol plant cumulative energy consumption for the year was 9.03 GCal/t. 3. Urea plant cumulative energy consumption for the year was 6.54 GCal/t.3 4. Overall cumulative energy consumption for the complex for the year was 7.58 GCal/t against the budget of 7.77 GCal/t.
Export 2018, tonnes
Exports (no. of ships) in 2018 4
38
20
600,000 500,000 400,000 300,000 200,000 100,000 50,000 0
Ammonia
Urea
Methanol
Ammonia
Methanol
Urea
Total ships loaded : 62
Annual Report 2018
25
Gulf Petrochemical Industries Co. BSC (C)
Technical Services Support
GPIC’s
laboratory is committed to providing analytical support to the Operations Department for the reliable & efficient operation of the plant. To fulfill its commitment, the laboratory collected approximately 49,200 routine samples from various sections of the plant and analysed them for 166,000 parameters during the year 2018. In addition to the routine samples, approximately 3,100 special samples have also been analysed for 9,500 parameters, thereby fulfilling the total analytical requirement of the plant. The break-up of the samples and the parameters analysed are shown in the figures below.
52155
56457
In order to ensure the quality of the final products, analysis of raw materials, as well as in-process samples were performed thoroughly by the laboratory. The quality of all the final products were checked before being shipped or loaded in the trucks/tankers. Approximately 250 Quality Certificates related 60000 50000
Utilities
Routine Parameters
26
Annual Report 2018
In its pursuit to equip itself with latest analytical tools, the laboratory procured a number of new instruments and equipment during 2018. All new instruments and equipment were commissioned and hands-on training was provided to 5000
Methanol
Urea
Routine Samples
Ammonia
0
Ammonia
Special Samples
Urea
Methanol
Utilities
Special Parameters
663
1751 1118
705
161 386
1309 475
1000
1663
3000 2000
11720
6374
6259
20000
24872
32740
24675
30000
0
To fulfill the requirement of ISO 17025 Standard, the laboratory participated in number of “Proficiency Tests” conducted by first class world renowned agencies i.e. M/S Laboratory Quality System International - USA (LQSi) for Urea product and M/S Institute for Inter-Laboratory Studies - Netherlands (IIS) for Methanol during the year. The laboratory performed very well in all the tests conducted by the agencies mentioned above.
4000
40000
10000
to three products were issued by the laboratory during the year. Regular monitoring of environmental parameters was carried out as per requirements of the plant and “The Supreme Council for the Environment”.
4424
Laboratory
Miscellaneous
Gulf Petrochemical Industries Co. BSC (C)
Technical Services Support
the laboratory staff. To accommodate the new instruments and equipment, two additional rooms have been constructed. The new instruments and equipment have helped the laboratory in meeting the analytical requirements of the new Urea Formaldehyde UF-85 plant and enhanced the analytical capabilities of the laboratory.
Engineering Section
To enhance knowledge & skill of the laboratory employees, paramount importance is given to training. Employees are regularly trained “In-House� or by external specialised agencies on various analytical techniques. The laboratory employees attended a number of training programmes during the year.
Prior to the scheduled turnaround, the Engineering Section was fully involved in reviewing and solving any initial issues for the new Nitrogen Unit to ensure successful commissioning.
It was another challenging year for the Engineering Section as it was a 'shutdown year' where all approved Capex Projects and modifications were installed during the scheduled Turnaround in April 2018 (TA - 2018).
Annual Report 2018
27
Gulf Petrochemical Industries Co. BSC (C)
Technical Services Support
As part of the proactive approach toward reliability and asset integrity assurance, GPIC has engaged reputable international inspection agencies and services of professional and expert contractors worldwide to ensure the continued reliability of the plant In addition to the above, during TA-2018, 54 Capital Projects were implemented to the value of US $ 45 million. Some of the critical Capex projects implemented are listed below: l Replacement of a number of critical exchangers in both the Ammonia and Urea Plants such as; Waste Heat Boiler E-0801, Steam Surface Condenser of Refrigeration Compressor Turbine, Gas Cooler E-0804, 2nd Carbamate Condenser E-8202B and 3rd stage Inter Cooler E-8103 of CO2 Compressor. l Replacement of a number of separators in both the Ammonia and Methanol Plants such as; the Ammonia Separator F-0801, Catch Pot Vessel F-1501 and Separator F-1408 in the CO2 Booster Compressor. l Replacement of the Auxiliary Boiler Deaerator D-5201 with improved design
Replacement of a number of catalysts such as; the Methanol Synthesis Catalyst, the Methanol Reformer Catalyst, the Ammonia Reformer Catalyst and the Urea Dehydro Reactor Catalyst. These catalysts had reached end of their useful lifecycle. l Replacement of a number of critical control valves in all plants. l Replacement of some the Critical Pressure Switches with SIL Certified Pressure Switches in the Ammonia plant. l Replacement of some of the Critical Level Switches with SIL Certified Level Switches in the Methanol plant. l Replacement of the Inlet Distribution Header of the Ammonia Converter and connected Piping from Grade P1 to P11 material. l
Capital Expenditure (in USD) 60,000,000
Completed Modifications 250
50,000,000
200
40,000,000 150 30,000,000 100 20,000,000 50
10,000,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
28
Annual Report 2018
19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18
0
0
Gulf Petrochemical Industries Co. BSC (C)
Technical Services Support
Upgrade of the switchgear at Substation # 4 with a version that includes a SCADA Communication Facility. l Replacement of the 415V Switchboard at Substation #2. l Replacement of the 415V Switchboard "31SWR2-2" at the Sea Water Intake Area in the Utilities Plant. l
The Engineering Section also completed a study of around 150 modifications. All the modifications undergo a rigorous Process Hazards Assessment before becoming operational to ensure the continuing safety and reliability of the plants.
for the Inspection Section because some of the major critical inspection activities were undertaken during the Turnaround in April 2018 (TA - 2018). During the course of the Turnaround, 448 pieces of plant equipment were inspected, including complying with statutory regulariting requirements. A total of 26 heat exchangers were subject to Eddy Current and IRIS inspection. A total of 179 NRVs and 253 PSVs were overhauled and inspected during the turnaround.
Inspection Section: The GPIC Inspection Section continued with its proactive approach towards enhancing the reliability and mechanical integrity of its assets based on industry best practices, and as per latest revisions of codes and standards. It was a challenging year 206 204 183 156 201 103 202 106 125 200 144 97 200 125 180 190 116 104 150 82 107 80 102
1996 2004 2012
1997 2005 2013
1998 2006 2014
1999 2007 2015
2000 2008 2016
2001 2009 2017
2002 2010 2018
2003 2011
Annual Report 2018
29
Gulf Petrochemical Industries Co. BSC (C)
Technical Services Support
Inspection of the piping corrosion loops as identified by Risk Based Inspection (RBI) Study and Process Safety (PSM) Critical lines were also carried out during TA - 2018. In addition, more than 20 plant equipment & piping corrosion loops were subjected to Risk Based Inspection studies and revalidated after the completion of the Turnaround. During the Turnaround the latest inspection and testing methods were utilised to enhance the quality and efficiency of
testing, such as; TOFD, Phased Array, Safe Radiation, Helium Leak Testing and Replica Metallography Examination. As part of the proactive approach towards reliability and asset integrity assurance; GPIC has engaged reputable international inspection agencies and services of professional and expert contractors worldwide to ensure the continued reliability of the plant. The inspection section was again certified for ISO 17020:2012 Accreditation Conformity Assessment with the requirement for the operation of various types of bodies performing inspection. In line with GPIC’s policy on enhancing and updating the skills of employees, Inspection Engineers were certified by the American Petroleum Institute (API) Certification Programme.
30
Annual Report 2018
Gulf Petrochemical Industries Co. BSC (C)
Plants Maintenance Maintenance Department Achievements during the year 2018
Routine Maintenance Orders (Completed) 2%
In 2018 Maintenance Department continued its consistent
16%
79%
3%
efforts to enhance safety and reliability throughout the complex, placing special emphasis on the process plants. Accordingly, the Objectives and Key Performance Indicators for the department were set and monitored closely on a quarterly basis, resulting in the achievement of all set objectives. In addition, the department has completed the following routine maintenance activities:
Mods/CapEx
Corrective Maintenance
Inspection
Preventive Work Order
I. Process Performance Effectiveness 96.4 % of CMRT Completed [Including Priority: 1, 2, 3]. l 97.5 % of PMRT & INRT Completed [Including BOPA]. l 100% Execution of Emergency Orders [2018 Target: Zero (0) pending, Total attended]. (Attended: 127). l 100% Execution of Urgent Orders [2018 Target: Zero (0) pending, Total attended]. (Attended: 531). l Maintenance Index [PM/CM ratio] achieved: [Target: 65/35]: 84/16 l 96.9 % Maintenance Orders completed during year 2017 (Order Type: PMRT/CMRT/INRT). Received: 7033 Completed: 6815 l PM Records Reviewed: 1095 l Production Orders completed: 28 l Saving of In-House Spare Parts Manufacturing for GPIC Warehouse - BD. 38,777 until the end of December 2018. l
III. Contract Services l l l l l l l l
Purchase Requisitions (PRs) raised = 26 Purchase Orders (POs) issued = 15 Term Contracts PRs raised = 120 Term Contracts POs issued = 132 Contractors & Suppliers engaged (Total) = 114 Contractors & Suppliers engaged (Term Contracts) = 111 Software Licenses = GPR’s raised = 2
II. Major Jobs Executed during 2018 l l l l l l
Completion of all Turnaround Project Activities. Constructing of a new Nitrogen Plant Project. Constructing of a new Urea Formaldehyde Unit. Desalination Plant I: All maintenance activities are completed. Desalination Plant II: All maintenance activities are completed. Floor replacement of tank T-0501. North & South Loading Arms Piles bracing. Extension of Laboratory Building to accommodate the new Urea Formaldehyde Unit UF-85. l All PM maintenance activities are completed as per Winter Schedule. l Refurbishment of Boiler B-5201B. l l
Annual Report 2018
31
Gulf Petrochemical Industries Co. BSC (C)
Plants Maintenance 2001*2018; In-House Manufacturing of Spare Parts Actual cost (BD) - Savings (BD)
450000 (BD) 400000 350000 300000 250000 200000 150000 100000 5000 0
2017
2018
Actual
121,543
2001
249,742 150,058 316,220 229,125 289,598 247,456 183,398 131,799 274,184 286,447 239,552 420,878 304,501 234,015 184,015
64,654
40,500
Saving
107,662
220,970 119,009 282,999 203,957 277,316 238,650 169,327 116,343 247,806 259,470 203,364 387,208 265,536 213,638 179,917
61,934
38,777
Actual Cuml.
121,543
371,285 521,343 837,563 1,066,688 1,356,286 1,603,742 1,787,140 1,918,939 2,193,123 2,479,570 2,719,122 3,140,000 3,444,501 3,678,516 3,862,531 3,927,185 3,967,685
Savings Cuml. 107,662
328,632 447,641 730,640 934,597 1,211,913 1,450,563 1,619,890 1,736,233 1,984,039 2,243,509 2,446,873 2,834,081 3,099,617 3,313,255 3,493,172 3,555,106 3,593,883
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
IV. Training & Development
V. Turnaround Statistics for 2018
Maintenance Employees involved (100 %); including SHE Training. l Training Hours achieved - 2773 Hrs. l Training Courses attended - 94 l Training Hours per Employee – 43.4 Hrs/employee
l
l
32
2002
Annual Report 2018
l l l
2015
2016
Number of Service Purchase Requisitions initiated – 147 Number of Maintenance Orders raised – 3,379 Number of Modifications - 107 Number of Capex Packages - 51 Number of Turnaround Audits Conducted to date - 16 Periodic Audits + 1 Shareholder Audit + 2 Readiness Assessments + 3 Management Audits. l Job-list Review Meetings conducted - 34 l Number of New Suggestions / Lessons Received – 136 l
Gulf Petrochemical Industries Co. BSC (C)
Procurement & Warehousing Department
During
2018, GPIC received materials/equipment/services with an approximate value of BD 43 Million to support the maintenance activities and reliability of plants’ operation. Approximately, 1,000 Purchase Orders for materials/services were issued, with an approximate value of BD 7.5 Million. The Warehouse effective service levels continued to remain at over 99% throughout the year, indicating the ready availability of materials required by the plants. This is a reflection of the
close and effective expediting and coordination with suppliers and contractors, both local and overseas. In coordination with maintenance, all the materials, equipment & services were supplied successfully for the Turnaround 2018 project, which started on 1st April 2018. This was done by maintaining effective follow up and expediting processes with the vendors, which resulted in delivery of 100% materials and services to the site. The total value of Materials & Services
Annual Report 2018
33
Gulf Petrochemical Industries Co. BSC (C)
Procurement & Warehousing Department
The Warehouse effective service levels continued to remain at over 99% throughout the year, indicating the ready availability of materials required by the plants
required for TA - 2018 was BD12.7 Million for materials and BD6.5 Million for services. Implementation of VAT (Value Added Tax) came into effect in Bahrain from 1 January 2019. GPIC has completed all SAP configurations and related modifications in ERP system in time to handle VAT, and in line with the statutory requirement of the “National Bureau for Taxation (NBT)� to incorporate VAT into business operations. The Procurement team took an active & effective role in coordination of implementation through provision of necessary inputs and testing the system under development to ensure seamless application.
34
Annual Report 2018
Gulf Petrochemical Industries Co. BSC (C)
Sales and Exports A modest strengthening of global economic activity continued
Ammonia Exports by Region 2018
in 2018. Revival of industrial production, especially in developed economies and recovery in global trade driven primarily by rising import demand from East Asia generally helped in strengthening the overall market sentiment.
47%
33%
In the year 2018, GPIC was able to achieve positive results in fulfilling its objectives set by the Board of Directors', taking full account of all the changes taking place in this industry and its regional and global markets. During 2018, the nitrogen fertilizer industry was once again seen struggling through its cyclical trough, confronted with oversupply and falling margins. However, GPIC was able to overcome all the market challenges and achieve the Company's planned goals and objectives through its successful management and its employee dedication. On the petrochemicals side, methanol largely regarded as an energy substitute and having a strong correlation with international oil prices saw a noticeable recovery during 2018, in line with the recovery in oil prices. Methanol is closely associated with oil as an alternative to energy. The year 2018 saw a steady rise in the price of methanol due to increased demand for downstream derivatives. Methanol is used in the manufacturing of Olefins, Formaldehyde, Acetic Acid and others, especially in China and the Far East. During 2018, GPIC’s exports of Ammonia, Urea and Methanol totaled 1,125,122 MT, which is 1.0% higher than the budgeted figures for the year. Total Ammonia exported for the year
20%
China
Korea
India
Methanol Exports by Region 2018 8%
3%
2%
3%
39% 36%
9% USA
Italy
UAE
Korea
Taiwan
Thailand
China
was 49,325 MT, while Methanol exports totaled 408,076 MT and Granular Urea exports in bulk totaled 667,721 MT. The company’s total exports of all three products were delivered on 59 ships. In addition, 798 MT of bagged Urea and 1,629 MT of Methanol was sold in the local Bahraini Market. China and Brazil proved to be the biggest importer for GPIC products during 2018 with 18% of the total exports for the year, followed by India and Taiwan both at 16% and 14% respectively.
Annual Report 2018
35
Gulf Petrochemical Industries Co. BSC (C)
Sales and Exports
This brought the total GPIC Ammonia and Methanol exports to world markets since the company’s inception in 1985 to nearly 6.7 million MT of Ammonia and 13.7 million MT of Methanol. GPIC’s Urea exports since the takeoff of its Urea operations in 1998 total around 12.8 million MT, while the cumulative total of all products exported from GPIC now exceed 33.2 million MT. Despite of all the challenges faced during the year, GPIC successfully concluded the year on an upbeat note, both in terms of the total products exported to world markets and in realising improved netbacks on all its three products namely ammonia, methanol and granular urea. During 2018, the company was again able to accomplish all its marketing goals and targets by effectively meeting all customer expectations and requirements, mainly about the quality and timely delivery of its products. The positive outcome is a result of intense dedication, hard work, joint efforts and mutual coordination between the GPIC and both its Marketing Partners, SABIC-Saudi Arabia and PIC-Kuwait.
Urea Exports by Region 2018 2% 14%
7%
4%
24%
6% 31%
12% USA Thailand
India Brazil
Australia
Korea
China South Africa
Cummulative Exports by Region 2018 2%
2%
8%
5% 18%
2% 16%
Total Ships Loaded - 2018
5%
60 50
10%
40
18%
30
14%
20 10 0
No of Ships
36
Ammonia 4
Annual Report 2018
Urea 18
Methanol 37
Total 59
USA
China
Korea
Thailand
Taiwan
Brazil
India
UAE
Italy
South Africa
Australia
Gulf Petrochemical Industries Co. BSC (C)
Human Resources Development
The Training
and Development of Bahraini employees is a major priority for GPIC’s management and 2018 marks 39 years of this commitment as the Academy of Leadership and Learning, previously known as the Training Centre, celebrated its 34th Anniversary. The Company's training policy supports the full development of Bahraini employees, both new and existing, as its ultimate objective. To achieve this goal, employees attend training courses arranged and designed by the Academy of Leadership and Learning as a part of their continuous training and development, the learning encompasses both practical and soft skills competencies through in-house, local and overseas training events.
Number of Trainees Annually 100 90 80 70 60 50
In addition to the awards in training and developments GPIC received in the previous years, the Company has been awarded several times the award of Outstanding Institution in Training and Human Resource Development from the Ministry of Labour. This achievement comes in recognition of the Company's role in the development of Bahraini employees, through the provision of abundant opportunities for staff to participate in specialised courses both within GPIC and externally. The company also supports and encourages employee participation in relevant petrochemical industry workshops, forums and conferences, in order to achieve the Company’s sustainable development objectives. The Academy of Leadership and Learning uses CompetencyBased Training (CBT) in its approach to the training and development of staff. This is a qualitative step in the development of training with a view to enhancing staff skills, boosting their capabilities, achieving equal training opportunities, improving productivity and developing skills to bridge any competency gaps. The pioneering strategy assists in the creation of individual training plans for company employees, which underpins the annual training plan and leads to the development of each person in the company.
40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
The Academy of Leadership and Learning is also currently supervising the development of 17 employees to ensure they have the relevant skills and competencies to step seamlessly into senior positions in the future.
Annual Report 2018
37
Gulf Petrochemical Industries Co. BSC (C)
Human Resources Development
Number of e-Learning Users 500 441
450
398
400 350 284
300 250
217
200
150
150 97
100 50
299
323
173
81
34
0
2008
Apart from coaching new graduates, the Academy conducted a number of training and development courses to meet the requirements of both the Company and its employees. This process involved arranging 94 training programmes held in the Academy and GPIC Club, and attended by 958 employees. Additionally there have been 77 training courses and conferences held in Bahrain with 223 employees in attendance and a total of 117 training courses outside Bahrain attended by 288 employees. In total 288 training courses were attended by 1,469 employees and trainees.
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
GPIC has also recently adopted a Company-wide mentoring programme to provide guidance from Managers and Superintendents to junior staff members. To date, 42 employees have benefitted from this initiative. The Company also holds Development and Awareness Programmes for all new employees in the areas of health, safety, security, environment and quality.
Total Training Events 400 350 300
338
335
296
288
320 288
251
250 200
308
210 177
172
150 100 50 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
38
GPIC has a separate scholarship scheme that strives to encourage employees to complete their academic studies. Furthermore, scholarships are also offered to employees' children.
Annual Report 2018
In 2018, GPIC trained 187 students from various local and overseas universities, institutes and schools in various departments of the Company under the supervision of qualified employees. This came as part of the management's commitment to provide training opportunities to improve the technical, leadership, communication, planning and team working skills of young people engaged in their academic studies within the community. This is a part of GPIC's allegiance to the community
Gulf Petrochemical Industries Co. BSC (C)
Human Resources Development
and the development of a generation of young people who will have improved skills and a greater ability to contribute to the current and future country's growth and development. The eLearning Centre provides an additional platform for the training and development strategy within GPIC as it offers 55 training programmes in a wide range of subjects such as; communication skills, self-development skills, computer applications, leadership skills and project management skills. There are also 18 technical programmes on offer to allow employees to enhance their technical skills and knowledge,
which supports the technical departments such as; Maintenance, Plants Operations and other technical areas within GPIC. The eLearning Centre also has 113 comprehensive training courses in the areas of safety, health and the environment. GPIC launched the electronic library, which is available through the Company's intranet portal. The Academy of Leadership and Learning e-Library has e-versions of more than 1,800 titles of magazines, journals, periodicals and publications covering a wide variety of subjects. In addition, the electronic library has more than 190 e-books on many different topics.
Annual Report 2018
39
شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة)
النشاط الصيفي
53
التقـريــر السـنـوي 2018
)Gulf Petrochemical Industries Co. BSC (C
Summer Camp Programme
2018 Annual Report
40
شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة)
النشاط الصيفي
52
التقـريــر السـنـوي 2018
)Gulf Petrochemical Industries Co. BSC (C
Summer Camp Programme
2018 Annual Report
41
)شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة
Gulf Petrochemical Industries Co. BSC (C)
Social Events & Activities
األنشطة والفعاليات اإلجتماعية
احلفل ال�سنوي التا�سع والثالثني 39th Annual Day Celebration
حفل تكرمي �أبناء املوظفني املتفوقني Honouring Ceremony for Outstanding Employees' Children
حملة جيبكا لتنظيف ال�شواطئ GPCA Beach Cleaning Campaign
42
2018 Annual Report
2018 التقـريــر السـنـوي
51
)شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة
Gulf Petrochemical Industries Co. BSC (C)
األنشطة والفعاليات اإلجتماعية
Social Events & Activities
�إحتفال ال�صحة وال�سالمة العائلي Family Safety, Health & Environment Celebration
حملة يوم امل�شي Walking Day Campaign
فعاليات عيد الفطر بنادي ال�شركة Eid Al Fiter Celebration at GPIC Club
43
2018 Annual Report
2018 التقـريــر السـنـوي
50
)شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة
Gulf Petrochemical Industries Co. BSC (C)
Social Events & Activities
األنشطة والفعاليات اإلجتماعية
حفل تد�شني كتاب القياديني يف البحرين Those-Who-Inspire-Bahrain Luncheon “ Those Who Inspire – Bahrain”
دورة داخلية يف كرة ال�سلة Interdepartmental Basketball Tournament
)حملة املوجة اخل�ضراء ( يونيب Green Wave (UNEP) Campaign
44
2018 Annual Report
2018 التقـريــر السـنـوي
49
)شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة
Gulf Petrochemical Industries Co. BSC (C)
المسؤولية المجتمعية
Corporate Social Responsibility
جائزة �سمو ال�شيخ نا�صر بن حمد للبحوث العلمية
االحتاد البحريني لكرة ال�سلة
HH Shaikh Nasser bin Hamad Scientific Research Award
The Bahrain Basketball Association
نادي را�شد للفرو�سية و�سباق اخليل Rashid Equestrian and Horseracing Club
نادي البحرين للتن�س Bahrain Tennis Club
45
2018 Annual Report
2018 التقـريــر السـنـوي
48
)شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة
Gulf Petrochemical Industries Co. BSC (C)
المسؤولية المجتمعية
Corporate Social Responsibility
معر�ض البحرين الدويل للطريان Bahrain International Air Show
املجل�س الأعلى للمر�أة Supreme Council for Women
جمعية البحرين للتدريب وتنمية املوارد الب�شرية Bahrain Society for Training and Development
46
2018 Annual Report
2018 التقـريــر السـنـوي
47
)شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة
Gulf Petrochemical Industries Co. BSC (C)
المسؤولية المجتمعية
Corporate Social Responsibility
م�ؤ�س�سة �إجناز البحرين INJAZ Bahrain
امل�ؤ�س�سة اخلريية امللكية Royal Charity Organisation
الإحتاد البحريني لكرة الطاولة Bahrain Table Tennis Association
47
2018 Annual Report
2018 التقـريــر السـنـوي
46
شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة)
)Gulf Petrochemical Industries Co. BSC (C
لجنة المرأة
Ladies Working Committee
�إحتفال يوم املر�أة البحرينية Bahrain Women’s Day Celebration
الربنامج التوعوي العاملي ب�سرطان الثدي Think Pink Campaign
45
التقـريــر السـنـوي 2018
جمعية النور للرب
م�ست�شفى امللك حمد
Al Noor Charity Welfare
King Hamad Hospital
2018 Annual Report
48
شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة)
)Gulf Petrochemical Industries Co. BSC (C
المعارض
Exhibitions
املنتدى ال�سنوي الثالث ع�شر للإحتاد اخلليجي للبرتوكيماويات والكيماويات (جيبكا)
معر�ض البحرين الدويل للحدائق
)13th Annual Gulf Petrochemical and Chemical Association (GPCA Forum and Exhibition
Bahrain International Garden Show
املعر�ض الزراعي التعليمي الثاين لوزارة الرتبية والتعليم Educational Agricultural Exhibition, by the Ministry of Education
امل�ؤمتر املهني الثاين ع�شر للجمعية الأمريكية ملهند�سي ال�سالمة العامة املهنية ( فرع ال�شرق الأو�سط) )12th Professional Development Conference & Exhibition for Safety (Middle East
44
التقـريــر السـنـوي 2018
2018 Annual Report
49
)شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة
Gulf Petrochemical Industries Co. BSC (C)
المعارض
Exhibitions
�أ�سبوع املهن بجامعة البحرين University of Bahrain Career Week Exhibition
م�ؤمتر ومعر�ض ال�شرق الأو�سط ال�ساد�س ع�شر لت�آكل املعادن 17th Middle East Corrosion Conference and Exhibition
م�ؤمتر ومعر�ض م�صر الدويل ل�صناعة الأ�سمدة Egypt International Fertilizer Industry Conference and Exhibition
50
2018 Annual Report
2018 التقـريــر السـنـوي
43
شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة)
الزيارات الرسمية لمجمع الشركة
)Gulf Petrochemical Industries Co. BSC (C
Official Visits to GPIC Complex
�سعادة ال�سفري ال�سوداين لدى مملكة البحرين
�سعادة ال�سفري الأمريكي لدى مملكة البحرين
H.E. the Sudanese Ambassador to the Kingdom of Bahrain
H.E. the US Ambassador to the Kingdom of Bahrain
وفد دائرة البيئة واملوارد الطبيعية الأمريكي
�سعادة وزير ال�شباب لدى جمهورية م�صر العربية
US Environment Department of State Delegation
H.E. Egyptian Minster of Youth
�سعادة املهند�س �سمري �آل عبدربه -نائب الرئي�س التنفيذي للمغذيات الزراعية � -سابك H.E Mr. Samir A. Al-Abdrabbuh, SABIC Executive Vice President, Agri-Nutrients
42
التقـريــر السـنـوي 2018
2018 Annual Report
51
)شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة
Gulf Petrochemical Industries Co. BSC (C)
Official Visits to GPIC Complex
الزيارات الرسمية لمجمع الشركة
�سعادة ال�سفري التون�سي لدى مملكة البحرين H.E. the Tunisian Ambassador to the Kingdom of Bahrain
نائب الرئي�س التنفيذي للإبتكار وتطوير الأعمال ب�سابك- �سعادة الأ�ستاذ عوي�ض احلارثي H.E. Mr. Uwaidh Al Harethi, SABIC Executive Vice President, Innovation and Business Development
نائب الرئي�س التنفي ّذي ل�شركة طريان اخلليج، القبطان وليد عبداحلميد العلوي H.E. Captain Waleed Abdulhameed Al Alawi - Gulf Air Deputy Chief Executive Officer
52
2018 Annual Report
2018 التقـريــر السـنـوي
41
شركة الخليج لصناعة البتروكيماويات ش م ب (مقفلة)
الزيارات الرسمية لمجمع الشركة
)Gulf Petrochemical Industries Co. BSC (C
Official Visits to GPIC Complex
�سعاةة الأ�ستاذ �سامي دميا�سي املدير واملمثل الإقليمي ملكتب الأمم املتحدة Visit H.E. Mr. Sami Dimassi, Director & Regional Representative of UN
40
�سعادة الدكتورة جواهر �شاهني امل�ضحكي الرئي�س التنفيذي هيئة جودة التعليم والتدريب
وفد جمعية املهند�سني البحرينية
)H.E. Dr. Jawaher Al Mudahki (Chief Executive - BQA
Bahrain Society of Engineers Delegation
نادي عبداهلل بن يو�سف لرعاية الوالدين
جمعية احلكمة للمتقاعدين
Abdullah Bin Yousif Fakhro Parental Club
Al Hekma Society for Retirees
التقـريــر السـنـوي 2018
2018 Annual Report
53