Gpic2016en2

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‫‪ANNUAL‬‬ ‫‪REPORT‬‬ ‫اﻟﺘﻘـــــــــــــــــــﺮﻳﺮ اﻟﺴـــــــــــــــــﻨﻮي ‪٢ ٠ ١ ٦‬‬

‫‪our Vision‬‬ ‫‪our Values‬‬ ‫‪our Sustainability‬‬

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‫‪2 0 1 6‬‬ ‫‪R E P O R T‬‬ ‫‪A N N U A L‬‬

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Streamlining strategies to realise a promising and greener future

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)

Achieving greater goals inspired by timeless values

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2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

CONTENTS

The Chairman’s Message The Board of Directors

4-5 6

The Board of Directors’ Report to the Shareholders

7-8

Corporate Governance

9-10

Executive Management

11

GPIC’s Vision, Mission & Corporate Values

12

Sustainability

13-14

Safety, Security, Health and Environment

15 - 17

Management Systems

18 - 20

Manufacturing and Production

21 - 23

Technical Services Support

24 - 28

Plants Maintenance

29 - 30

Sales and Exports

31 - 32

Human Resources Development

33 - 35

Official Visits to GPIC Complex

36 - 38

Exhibitions

39 - 40

Ladies Working Committee

41

Youth Committee

42

Corporate Social Responsibility

43 - 45

Social Events & Activities

46 - 49

Company Information

50

Director's Report

51

Independent Auditor's Report

52-54

Statement of Financial Position

55

Statement of Profit or Loss

56

Statement of Comprehensive Income

57

Statement of Changes in Equity

58

Statement of Cash Flows

59

Notes to the Financial Statements

60 - 84

2016 Annual Report

3

Gulf Petrochemical Industries Co. BSC (C)

The Chairman’s Message

H.E. Dr. Ahmed Ali Al Sharyan Chairman

The Gulf Petrochemical Industries Company continued making steady progress and added more local, Arab, regional and international achievements to its credit in spite of the global economic challenges.

Thanks to God Almighty, GPIC was able to achieve a new record of more than 24 million hours without a lost time accident. Such outstanding achievements in 2016 are in keeping with the commitment to observe the principles of social responsibility, safety, health and the environment.

4

The Company achieved a new record in annual production of Urea, amounting to 704,003 metric tonnes, and a combined production of 1,617,422 metric tonnes of Urea, Ammonia and Methanol, for the first time in its history.

The production of Ammonia and Methanol reached 467,539 and 445,880 metric tonnes, respectively, thus achieving the Company's goals for 2016.

The Company also achieved a profit of US$ 1 million in 2016, an achievement to truly acknowledge in the light of the challenges faced during the period.

GPIC’s achievements culminated with GPIC winning the Excellence Award in the field of occupational health and safety and environment protection, awarded by the Royal Society for the Prevention of Accidents (RoSPA). The Company also won the Arab Award for Social Responsibility in the category of large companies.

This outstanding performance and continuous achievement made by GPIC during 2016 would not have been possible without the grace of God Almighty and the support and guidance of Bahrain’s wise leadership, which paved the way for the Company to achieve success.

In spite of the challenges we faced during 2016, GPIC maintained a level of interest and care for the society in which it operates, keenly providing key business opportunities for local growth and prospects for its stakeholders through adopting a comprehensive plan designed to meet all such functional expectations.

We salute and thank 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, for their continued support.

2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

The Company achieved a new record in annual production of 704,003 metric tonnes of Urea, and a combined production of 1,617,422 metric tonnes of Urea, Ammonia and Methanol, for the ďŹ rst time in its history.

Our deep appreciation is also extended to all government institutions in Bahrain, our distinguished shareholders, the National Oil and Gas Holding Company of Bahrain, Saudi Basic Industries Corporation (SABIC) and the Petrochemical Industries Company of Kuwait for their continuous support and encouragement.

Our warm thanks and appreciation is also afforded to our esteemed Board of Directors, for their focused policies, opinions and their leadership which has had a profound impact on the Company's success and prosperity.

Finally, our sincere thanks and deep gratitude is extended to the members of the Executive Management and all GPIC employees for their loyalty and dedication and their efforts.

H.E. Dr. Ahmed Ali Al Sharyan Chairman of the Board of Directors

2016 Annual Report

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Gulf Petrochemical Industries Co. BSC (C)

The Board of Directors

H.E. Dr. Ahmed Ali Alsharyan

Mr. Yousef A. Alzamel

Mr. Ibrahim Mohammed Almusaitir

Chairman

Deputy Chairman (From 29 May 2016)

Managing Director (From 29 May 2016)

Shaikh Fahad Bin Salman Al Khalifa Board Member

Mr. Ahmed M. Alumar Board Member (From 29 May 2016)

Mr. Yousef A. Alzamel Managing Director (Up to 29 May 2016)

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2016 Annual Report

Ghanim Nasser Alotaibi

Mr. Abdullah Saeed Almutairi

Mr. ShaďŹ Taleb Alajmi

Board Member (From 17 March 2016)

Board Member (From 29 May 2016)

Board Member (From 17 March 2016)

Mr. Sa’ad Mohammed Alajmi Deputy Chairman

Mr. Ibrahim Mohammed Almusaitir Deputy Chairman

(Up to 16 March 2016)

(From 17 March up to 28 May 2016)

Mr. Mohamed bin Ali Al Yemni

Mr. Abdulnasser Ahmed Al Babtain

Board Member (Up to 28 May 2016)

Board Member (Up to 28 May 2016)

Mr. Emad Mahmoud Sultan Board Member (Up to 16 March 2016)

Gulf Petrochemical Industries Co. BSC (C)

The Board of Directors' Report to the Shareholders

With regard to safety, GPIC achieved more than 24 million hours of work without a lost time accident in 2016, thus maintaining its record of eradicating crippling work accidents since May 2002.

Global economic challenges faced by the industrial sector, marked by a rise in natural gas and electricity prices and coupled with a sharp decline in prices of petrochemicals and fertilizers produced by the Gulf Petrochemical Industries Company, resulted in a significant impact on profits this year.

Despite these external market influences, the Company was able to maintain its position and made significant achievements in health, safety and environmental areas as well as reinforced its commitment towards social responsibility. GPIC continued to develop its relationships with international entities and confirmed its role as a significant contributor to Bahrain’s economy through its approach towards the foundations of sustainable development as well as the preservation of the environment and ensuring financial stability.

In recognition of its continued efforts in recruitment, training and development of human resources, the Company also won the award for Excellence in the field of Human Resources Management in 2016 for the private sector category.

With regard to safety, GPIC achieved more than 24 million hours of work without a lost time accident in 2016, thus maintaining its record of eradicating crippling work accidents since May 2002.

The Company won a number of local and international awards, most notably the Excellence Award in Occupational Health and Safety awarded by the Royal Society for Prevention of Accidents (RoSPA) and the Arab Social Responsibility Award in the large companies category.

GPIC also achieved the Arab Social Responsibility Award for the best joint venture between the public and the private sector.

2016 Annual Report

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Gulf Petrochemical Industries Co. BSC (C)

The Board of Directors' Report to the Shareholders

The Company has been able to produce 1,617,422 metric tonnes of Ammonia, Urea and Methanol, the record-breaking combined annual production of the Company since its inception.

In terms of production, the Company exceeded all the goals set for 2016 and even achieved new records:

• The production of Urea was 704,003 metric tonnes

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.

(new record)

• The production of Methanol was 445,880 metric • •

tonnes The production of Ammonia was 467,539 metric tonnes Total production for the three materials was 1,617,422 metric tonnes (new record)

The production of Ammonia for export reached 70,481 metric tonnes.

The close cooperation between GPIC, Saudi Basic Industries Corporation (SABIC) and the Petrochemical Industries Company (PIC) of Kuwait continued strongly during 2016 resulting in smooth export operations and continuity for GPIC production, culminating in 1,188,824 million tonnes of its products being shipped on board 64 ships, to the world’s leading markets.

The Board of Directors takes this opportunity to express its sincere thanks and appreciation to His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, His Royal Highness Prince Khalifa bin Salman Al Khalifa,

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2016 Annual Report

The Board of Directors also conveys its sincere thanks and gratitude to the Company’s shareholders, the National Oil and Gas Holding Company of Bahrain, Saudi Basic Industries Corporation of Saudi Arabia and the Petrochemical Industries Company of Kuwait, for their continued commitment to the success of the Company and for supporting its marketing operations.

The Board of Directors also pays tribute to the dedicated efforts of members of the Executive Management and all employees who have worked as a team to maintain the Company's position as a centre of global petrochemical and fertilizer production.

Gulf Petrochemical Industries Co. BSC (C)

Corporate Governance Audit, Finance & Risk Committee (Internal Audit Function)

GPIC's

Corporate Governance system is based on three 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.

Audit, Finance and Risk Committee Composition

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 provides - on a long term basis - added value to the Company's shareholders and in line with the principles outlined in the Company's Articles of Association.

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 Company's Corporate Governance Policy resulted in the formation of a high level Audit, Finance and Risk Committee to assist the Board of Directors in the effective performance of their governance and oversight responsibilities.

GPIC’s Internal Audit is an independent, objective, assurance and consulting activity designed to add value and improve GPIC's operations. 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.

The Audit, Finance and Risk Committee is comprised of three Directors. Each Director is nominated by Saudi Basic Industries Company (SABIC), Petrochemical Industries Company (PIC) and Nogaholding.

Role of the Audit, Finance and Risk Committee

The Committee is tasked with overseeing such responsibilities as financial reporting, internal control and risk management, internal audit, external audit, compliance, governance and other matters as enumerated in the Audit, Finance and Risk Committee Charter.

Internal Audit Function

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Gulf Petrochemical Industries Co. BSC (C)

Corporate Governance

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.

It 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.

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

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2016 Annual Report

Company’s objectives and are performing economically, efďŹ ciently 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 Function reports directly to the Audit, Finance and Risk Committee. For logistical reasons, the Internal Auditor 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

The inspiring leadership strengthened with integrity and professionalism Sitting from left to right

Standing from left to right

Mr. Yusuf Ebrahim Fakhroo Human Resources Manager

Mr. Ahmed Mahmood Abdulghani Marketing Manager

Mr. Yasser A. Rahim Alabbasi Plants Operation Manager

Mr. Zuhair A.Aziz TawďŹ qi Corporate Communications Manager

Dr. Abdulrahman A. Hussain Jawahery President

Mr. Adnan A. Razzaq Al Mahmood Information Technology & Knowledge Manager

Mr. Fadhel Malalla Al Ansari General Manager - Manufacturing

Mr. Bader Mohammed AlMansoori Maintenance Manager

Mr. Adel Ahmed A. Malik Finance Manager

Mr. Khalid Yusuf Al Bin Ali Technical Services Manager Mr. Jassim Ahmed Darwish Safety, Security, Health & Environment Manager

2016 Annual Report

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Gulf Petrochemical Industries Co. BSC (C)

GPIC's Vision, Mission & Corporate Values

At GPIC, the Vision, Mission and Values are untiringly practised in every strategic and operational step. These are the guiding lights on the path towards sustainable growth and unmatched excellence.

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VISION

MISSION

VALUES

To be a world-class petrochemical and fertilizer company of choice, recognized for excellence.

•

To produce high quality 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

2016 Annual Report

To train and develop the Human Capital to realize their full potential

Excellence Integrity Respect Transparency Safety Professionalism Social Responsibility Creativity Team Work

Gulf Petrochemical Industries Co. BSC (C)

Sustainability

GPIC proudly supports the Sustainable Development Goals

Sustainability

& Corporate Social Responsibility is at the heart of the GPIC success story. Sustainability is a common thread that runs through our business fabric.

For us, sustainability is not only a journey we embarked on over three decades ago, but that it is now a solid way of life for our Company and our employees.

GPIC is not only a market leader in business but a wellknown champion in sustainability. Through the years we have scaled up the sustainability practices and initiatives and currently lead in a number of ways. The current focus of our sustainability initiatives is leadership, collaboration and innovation. Utilizing the globally established GRI framework we have conducted the most extensive stakeholder engagement to ascertain the materiality of the sustainability issues we advocate. Not only have we published our third GRI Compliant Sustainability Report in June 2016, but have also climbed up to the highest level of reporting as a member of the UN Global Compact.

This Report also serves as GPIC’s UN Global Compact Communication on Progress (COP) and its signature issue platforms such as the Women’s Empowerment Principles and the Food and Agriculture Business Principles.

As an outcome of our deep commitment to Climate Change action in relation to COP21, GPIC has provided its employees with training on the IPCC Carbon Inventory software and has used this platform to issue their first Greenhouse Gas (GHG) Inventory Report.

In September 2015, 193 member States of the United Nations adopted 17 new Sustainable Development Goals (SDGs) to make our world more prosperous, inclusive, sustainable and resilient. These SDGs represent an unprecedented opportunity for companies such as ours, to align their own sustainability goals with broader societal goals.

The 17 Sustainable Development Goals (SDGs) address the most important economic, social, environmental and governance challenges of our time, providing a clear and compelling direction for the future. These new global goals are set to be a major driver of the markets of tomorrow and can unleash a wave of sustainable products, services and business innovations.

2016 Annual Report

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Gulf Petrochemical Industries Co. BSC (C)

Sustainability Like other responsible businesses, GPIC too has directed its focus onto the Sustainable Development Goals and has proactively started to review, link and align its business priorities with the global priorities as articulated in the 17 Sustainable Development Goals. As a first step, we have shown our alignment to the global goals by linking our long term sustainability goals to the SDGs. We have also started engaging the youth of our Company and the Kingdom of Bahrain through awareness campaigns on SDGs. GPIC’s leadership commitment and support for sustainable agriculture, food security and poverty eradication and its engagement with international organizations such as UNGC, UNEP, FAO gained significance and further momentum throughout 2016 when GPIC’s President became the International Fertilizer Industry Association (IFA) President. GPIC’s President is also an active member of UNEP’s HLG for GEO 6 and provides guidance and policy position on regional assessments.

We continued to benchmark ourselves with the best in class and won the Arabia CSR Award 2016 in the Large Organizations Category and the Partnerships and collaboration category for our outstanding achievements in Corporate Social Responsibility and Sustainability in the MENA region. Winning the Arabia CSR award for the fifth 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, poverty alleviation, women empowerment and infrastructure improvement.

We ultimately know and believe that, through CSR leadership, innovation and collaboration, we can guarantee a more prosperous future for societies and our planet.

“The overall success of the SDGs depends on youth engagement because young people are critical thinkers; change makers; innovators; communicators and leaders.”

Dr. Abdulrahman Jawahery – GPIC President

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2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

Safety, Security, Health and Environment

2016 was another extremely successful year for GPIC in terms of Safety, Security, Health and Environmental (SSHE) excellence. Throughout the year, GPIC continued to enhance and strengthen its Safety, Security, Health and Environmental (SSHE) management systems including training, capacity building and testing of its emergency response and preparedness. These continual improvement efforts culminated in achieving a record 24.9 million working hours for its workforce and contractors without any lost time accident, exceeding 5,360 days. All operations were managed responsibly on a sustained basis throughout the year without any reportable environmental incident.

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 2016. Our Security management continued to be robust and resilient.

With regard to its excellence in occupational health, safety and the environment, GPIC has been awarded the RoSPA Chemical Sector Award from the Royal Society for the Prevention of Accidents (RoSPA). This award was presented to GPIC for its outstanding application of SSHE standards and for undertaking a leading role in this area. 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 organizations

such as National Safety Council, Royal Society for the Prevention of Accidents, UN and UNEP. GPIC President is in the UNEP‘s HLG of GEO 6 assessment and provides advice on regional assessment. GPIC has engaged actively with governmental bodies on national level strategy formulation and legislation revision on environmental issues covering Paris climate change agreement COP 21 and associated greenhouse gas inventory reporting, National Bio-diversity strategy and action plan, National Energy Efficiency and National Renewable energy action plan.

Being a Responsible Care certified Company, GPIC’s drive for excellence goes beyond the fences. One of the latest initiatives is the TeenDrive module of National Safety Council-USA. GPIC has introduced this vital tool of driving training system to the Ministry of Interior and it will be launched country wide targeting the young drivers.

In quest of continual improvement, GPIC underwent a successful week long comprehensive external audit/ assessment on its Process Safety Management Programme.

The assessment was carried out by auditors from Process Improvement Institute (PII)-USA.

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Gulf Petrochemical Industries Co. BSC (C)

Safety, Security, Health and Environment The following is a list of significant SSHE achievements during 2016:

Operations and Non-Operations personnel. During 2016 there were 35 Modulised Emergency Response Training (MERT) sessions, attended by plants operation and maintenance personnel.

of Safety Media e-learning courses. 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 majority now achieving RoSPA accreditation.

• Certified first aid training is being imparted to employees

• 75% of all employees have successfully received

including all SSHE staff in Academy of Leadership and Learning. This training is certified by National Safety Council–USA

their in-house basic firefighting training by utilizing state-of-the-art environment friendly ITS (Intelligent Training System) with smart extinguishers in the complex and at the GPIC club.

• Safety training continued to be provided for both

• Furthermore as part of Responsible Care, we provided fire and safety training to personnel from Civil Defense, BDF, Bahrain Society of Engineers, Royal Court, industrial trainees, contractors, etc.

• GPIC is constantly outreaching and engaging contractors for SSHE training certification with IMIST (International Minimum Industry Safety Training). This certified learning training tool is being used at GPIC to enhance the safety knowledge and capacity building of contractors. The certification is based on the OPITO (Offshore Petroleum Industry Training Organization) guideline, U.K. To-date 105 number of contractors have been certified which includes all levels such as, safety officers, site engineers, site supervisors/foremen and different crafts to ensure that safety is well understood and implemented at all times.

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• 200 employees have successfully completed 3061 no’s

2016 Annual Report

• GPIC continues to invest in enhancing and upgrading its Emergency Response Equipment and Vehicles. In 2016, GPIC procured a state-of-the-art fire tender from M/S Rosenbauer,, Austria.

Gulf Petrochemical Industries Co. BSC (C)

Safety, Security, Health and Environment • SSHE Manager is appointed as a Member of ‘Middle East Regional Advisory Council’ of ASIS International. The ASIS International is the leading organization for security professionals worldwide and it is dedicated to increasing the effectiveness and productivity of security professionals.

• The SSHE Family Night is one of the main annual events of the Company and was organized this year in the month of July. This event is 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 in the workplace. A “drawings and essay writing competition” was organized before the event in order to develop and further enhance creativity and SSHE awareness within the large number of talented children and wives of the employees and SSHE awareness within the large number of talented children of the employees.

• Replacement of existing conventional lights in process areas, non-process areas, buildings and street lights with energy efficient LEDs. To date 1236 light fittings were replaced with an energy saving of 383MWH/year and a GHG reduction by 191 TPY CO2e.

2001. From 2015 Responsible Care awareness is also being imparted in addition to environmental awareness.

• For the tenth consecutive academic year, GPIC sponsored the Ministry of Education/GPIC Environmental Research Program for the GPIC Environment Award for secondary school students. This Award has developed momentum and become the best Environment Award available for secondary school students. This project also received the first winner award for the Best CSR Project by Arabia CSR, UAE.

• As part of the health awareness program, GPIC’s Medical Center arranged several lectures to increase the employees’ health awareness on subjects like Office Ergonomics, stress management, yoga, cancer, adverse effects of smoking, dental care, food in Ramadan, health and nutrition. Additionally, various health campaigns took place such as GPIC Smoke-Free Campaign, Beat the Heat Campaign and Obesity Management Program.

• More than 380 employees were screened at GPIC Medical Centre as part of the periodic medical examination during 2016.

• As part of Post COP 21 requirements, GPIC in

• As part of corporate social responsibility more than 180

collaboration with NOGA provided training to its Greenhouse Gas (GHG) inventory reporting team members on the use of IPCC GHG Inventory software and issued its first GHG Inventory Report in 2016.

• Being a Responsible Care (RC) Company, GPIC actively

• GPIC in cooperation with UNEP and Ministry of

GPIC employees donated blood during 2016.

participated in all the planned RC related initiatives, committees, conferences and workshops spearheaded by GPCA. Additionally RC metrics were reported as planned.

Education continued with the Green Wave initiative that was launched in 2015. Through this program 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 a variety of local tree saplings, such as pomegranate and olive, are planted by the students.

• To date we have recycled 96 tonnes of plastic, paper, metal cans and card board, which has resulted in our carbon footprint reduction by 164 tonnes CO2e.

• Publicizing 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 program has crossed 27,500 since

2016 Annual Report

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Gulf Petrochemical Industries Co. BSC (C)

Management Systems

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.

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 time.

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 becoming more complex.

GPIC’s Executive Management Team emphasizes the alignment of all business operations to the Company’s overall vision and its drive for Sustainability. This is achieved also 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,

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2016 Annual Report

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.

GPIC’s Management and Committees hold periodic management meetings to review and monitor the performance and efficiency of its Integrated Management Systems (PAS 99), the Responsible Care System (RC 14001), the Information Security Management System (ISO 27001), the Business Continuity System (ISO 22301), the 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.

The Company’s Technical Inspection Department received a Certificate of Reliability related to the programme when an internationally qualified and skilled examining team of experts, based in the United States, awarded the ISO 17020 Standard. This is yet another instance reflecting GPIC’s experience and stewardship in this regard.

Gulf Petrochemical Industries Co. BSC (C)

Management Systems

The Department of Instrumentation and Control, a part of the Department of Maintenance, also received a Certificate of Reliability on general requirements for their testing and calibration laboratories (ISO 17025) from a United Statesbased body of International Accreditation Service. This reflects the Company's commitment and determination to implement and follow best global practices in various areas of work, including those related to engineering and the safety and security of the facility and equipment.

The Department of Instrumentation and Control is a key and essential lifeline for all industrial processes in manufacturing industries and applies mathematical, physical, chemical, engineering and economic principles for the design, operation and development of industrial processes systems. These are measured and operated using measurement and control devices to ensure product quality and safety of the industrial facility.

The Company’s Quality Control Laboratory also received a Certificate of Reliability (ISO 17025) relating to the general requirements for Methanol testing. In 2014, the facility received a similar certificate for Urea testing and in 2015, it was certified for Ammonia. This is a clear indication of the laboratory’s world-class operations in testing and checking the quality of products and also reflects the division’s neutrality and professionalism as well as commitment to the highest health and safety ratings.

for reviewing Enterprise Risks and activities related to the revisions and validations of the standards 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. 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 stakeholders, in the shortest time possible and at the lowest realistic associated costs.

GPIC’s Resilience Committee is responsible for following up on the progress of these matters and also responsible

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Gulf Petrochemical Industries Co. BSC (C)

Management Systems

There were approximately 80 internal audits conducted during 2016, 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 its journey in continuous improvement. In addition, different certified bodies also conducted 10 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 legislation. The Management Systems Section is proud to confirm that all internal and external audits have been successfully concluded on schedule.

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2016 Annual Report

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, organizational internal procedures at all stages and sections of the Company’s business and, contributing to the organization’s continuity of workflow and desired goals.

Gulf Petrochemical Industries Co. BSC (C)

Manufacturing and Production

PRODUCTION PERFORMANCE HIGHLIGHTS All Plants were operated in a reliable, safe and efficient way while maintaining specified standards in terms of quality for all products.

The table below gives summary of the budget versus actual production figures.

Product

1. Highest ever production combined of 1,617,422 MT (2.66% Higher than the budget) 2. Highest ever production saleable of 1,220,364 MT (2.74% Higher than the budget) 3. Hightest ever Urea production of 704,003 MT (3.5% Higher than the budget)

Budgeted tonnes

Actual tonnes

Variance

Ammonia

452,520

467,539

3.3% Higher

Methanol

442,800

445,880

0.7% Higher

Urea

680,200

704,003

3.5% Higher

Ammonia to Urea

387,710

396,315

2.2 % Higher

Total Production

1,575,520

1,617,422

2.66% Higher

Saleable Production

1,187,810

1,220,364

2.74% Higher

4. The Ammonia plant achieved the maximum daily average production during the period 1/1/2016 to 31/8/2016 at a daily average rate of 1,287 MT over operating days.

Production Performance 2016 2.0

5. The average daily production achieved over 2016 was 1,282 tonnes/day of Ammonia, 1,929 tonnes/day of Urea and 1,227 tonnes/day of Methanol.

1.6 1.2

(Million MT)

0.8

6. As a part of enhancing efficiency and reliability of the complex, two important projects were carried out successfully. These are: a. Refurbishment of one of the Utilities boilers and, b. Installation of an additional potable water tank

0.4 0.0 Ammonia Budget

Urea

Methanol

Total

Saleable

Actual

2016 Annual Report

21

Gulf Petrochemical Industries Co. BSC (C)

Manufacturing and Production Performance factors: The following graphs indicate the sustained high level performance of the plants.

Plants Operation Capacity Utilsation %

Plants Operation Onstream Factor % 125

125

100

100

75

75

50

50

25

25

0

0 2011

2012

2013

2014

2015

2016

2011

Plants Operation Utilisation Factor %

2013

2014

2015

2016

Export 2016, tonnes 800,000

125

700,000

100

600,000

75

500,000 400,000

50

300,000

25

200,000 100,000

0 2011

2012

2013

2014

2015

2016

0.00 Ammonia

Ammonia

Methanol

• The Ammonia plant completed 439 days of continuous production run.

• The Methanol plant completed 210 days of continuous production run.

• The Urea plant completed 626 days of continuous production run.

2. Since 1985, the cumulative total of 13.1 million tonnes of Ammonia and 12.9 million tonnes of Methanol production was achieved by end of December 2016.

3. Since 1998, 11.6 million tonnes Urea production was achieved by end of December 2016.

2016 Annual Report

Methanol

Urea

Urea

1. The plants registered excellent running cycle during the year 2016.

22

2012

Energy consumption figures during 2016.

1. The Ammonia Plant’s cumulative energy consumption for the year was 8.91 GCal/t.

2. The Methanol Plant’s cumulative energy consumption for the year was 9.01 GCal/t.

3. The Urea Plant’s cumulative energy consumption for the year was 6.48 GCal/t.

4. The overall cumulative energy consumption for the complex for the year was 7.56 GCal/t against a budget of 7.77 GCal/t.

Gulf Petrochemical Industries Co. BSC (C)

Manufacturing and Production

Product Handling & Exports:

Exports (no. of ships) in 2016 5

• The Product Handling & Export section provided uninterrupted support by loading the cargo within the allocated time throughout the year.

19

• Throughout the year, Ammonia, Methanol and Granular Urea were produced to the highest quality specifications, for the premium market. A total of 1.220 million tonnes of product was exported during 2016.

38

Ammonia

Urea

Methanol

2016 Annual Report

23

Gulf Petrochemical Industries Co. BSC (C)

Technical Services Support

LABORATORY

During

2016, the Laboratory section extended analytical support to our Operations Department by successfully completing all the analytical requirements of the plant. Approximately, 52,000 samples from various sections of the plant have been collected and analyzed for 180,000 parameters. The breakup of the samples and the parameters analyzed is shown in the graph below.

In addition to the routine samples, approximately 2,500 special samples were analyzed for 7,000 parameters.

24

2016 Annual Report

To ensure the quality of the final products, monitoring of raw materials and process intermediates is scrupulously carried out at various intermediate stages of the process.

The quality of the final products is checked before being shipped/loaded in the truck. Approximately 150 Quality Certificates related to three products were issued by the laboratory during the year. Environmental parameters were also monitored regularly during the year to comply with the requirements of the “Supreme Council for the Environment”.

Gulf Petrochemical Industries Co. BSC (C)

Technical Services Support

Sample Breakup

Sample Breakup

60000

4000

50000

3500 3000

40000

2500

30000

2000

20000

1500 1000

10000

500

0

0

Ammonia Routine Samples

Urea

Methanol

Utilities

Parameters

To improve the analytical capabilities of the laboratory, staff are regularly trained both “in-house” and external by specialized agencies to improve their analytical skills.

The Laboratory is upgraded every year with modern & sophisticated instrument.0.

Ammonia Special Samples

Urea

Methanol

Utilities

Misc.

Parameters

During this year, M/s International Accreditation Services-USA, awarded ISO 17025 accreditation to the laboratory for eight analytical parameters relating to our Methanol Product. The laboratory currently has ISO 17025 accreditation for various important & crucial parameters pertaining to all the three products i.e. Ammonia, Methanol & Urea. The “Certificate of Accreditation” and “Scope of Accreditation" are attached below.

2016 Annual Report

25

Gulf Petrochemical Industries Co. BSC (C)

Technical Services Support

This year, the engineering department completed 200 modifications. All the modifications undergo a rigorous Process Hazards Assessment before being operational to ensure the safety and reliability of the plants.

ENGINEERING SECTION 2016 was a challenging year for the Engineering department as preparations for the installation of major approved Capex Projects during the forthcoming Turnaround 2018 were underway. The Procurement process for major long lead equipment is also underway.

These approved Capex projects will facilitate in enhancing the safety and reliability of process plants. This year, the engineering department completed around 200 modifications. All the modifications undergo a rigorous Process Hazards Assessment before being operational to ensure the safety and reliability of the plants.

During 2016, 36 Capital Projects were processed worth US$ 35.6 million. The efforts of Engineering Section reflect the dedication towards the processing of these modifications and Capex projects. Some of the critical Capex projects under implementation are listed below: • Replacement of Ammonia & Methanol Loading Arms.

• Replacement of Switchboard 61MMS4-1 with a modern type.

• Replacement of existing 415V Switchboards 61PC21A/B and local switchboard in sea water intake area 31SWR2-1/2 with a modern type.

Capital Expenditure (in USD)

Completed Modifications

60,000,000

250

50,000,000

200

40,000,000

150

30,000,000

100

20,000,000

50

10,000,000

0

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Budget Figure

26

2016 Annual Report

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Budget Figure

Gulf Petrochemical Industries Co. BSC (C)

Technical Services Support

• Replacement of number of Exchangers including Synthesis Loop Waste Heat Boiler E-0801, Carbamate Condensor E-8202B, Urea CO2 Compressor Third Interstage Cooler E-8103, Cold Exchanger E-0804 & Gas Coolers E-0803B/C/D. • Replacement of Catch Pot F-1501, Ammonia Separator F-0801, Deaerator D-5201 & Inlet Air Filter F-0202 of Process Air Compressor.

• Upgrade & Enhancement of Field Instruments & Control Valves.

Completed Modifications 103 156

183

204 144 97

During 2016, GPIC received materials with an approximate value of BD 6.5 Million which were required to support the maintenance and reliability of plant equipment and cater to all operational requirements. 1,509 Purchase Orders for materials and services were issued in 2016.

The warehouse effective service levels continued to score more than 99% throughout the year, indicating the ready availability of materials required by the plants. It is also a clear indication of the close and effective expediting and coordination with suppliers and contractors, both local and foreign.

Keeping with the section’s cost optimization objectives whilst ensuring the reliability and safety of the Plants, emphasis was given to stronger commercial negotiation.

The endeavor resulted in a saving of BD 1,482,537/accounting for a saving of 11%.

206

106 125

Materials & Procurement Section

201

125 202 190

The Materials section has started concluding orders (in consultation with users) based on competitive offers from multiple bidders even for OEM spares which caused further substantial savings in procurement cost to spare parts.

200

116 104 82 107 80 102

200

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2016 Annual Report

27

Gulf Petrochemical Industries Co. BSC (C)

Technical Services Support

INSPECTION SECTION GPIC continued with its proactive approach toward enhancing the reliability and mechanical integrity of its assets. Many new enhancements were made and new inspection equipment like the Alloy Analyzer, Defect detector of non metallic coating and Calibration Blocks, were purchased to enhance on the stream inspection capabilities and to ensure inspection activities were done in a reliable and effective manner. In addition, more than 102 Risk Based Inspection studies were revalidated after the completion of the 2015 turnaround.

In line with GPIC’s policy on enhancing and updating the skills of employees, Inspection Engineers were certified through the American Petroleum Institute (API).

The Inspection section continued its integrity program and engaged an international inspection agency to follow up the inspection of CAPEX items manufactured internationally to ensure quality assurance requirement.

28

2016 Annual Report

The inspection section was again certified for ISO 17020:2012 accreditation conformity assessment with the requirements for the operation of various types of bodies performing inspection.

Gulf Petrochemical Industries Co. BSC (C)

Plants Maintenance

In

2016, the Maintenance Department continued its consistent 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 nearly all objectives being achieved.

11) Granulation Unit: Granulation washing activities were completed 21 times from the beginning of the year up to date.

Routine Maintenance Orders (Completed) 1%

32%

The department also completed the following as part of routine maintenance activities: 1) 2) 3) 4)

90 ModiďŹ cations & 12 Capital Projects.

4,966 Preventive Maintenance Activities.

2,477 Corrective Maintenance Activities.

131 Inspection Activities.

65%

2%

Corrective Maint.

Major jobs executed during 2016: 1) 2) 3) 4) 5)

Major Overhaul of Gas Turbine (MT-6401).

Water-prooďŹ ng of Bulk Storage Roof.

Replacement project of the Conveyer Belt L-7606.

Catalyst replacement of R-0102 & R-0001.

Desalination Units I & II Evaporator stages 9 to 15 tubes replaced by new ones.

6) Replacement of T-3401 Potable Water Tank.

7) Painting of Structures in Ammonia Plant (Phase I & II).

8) Painting of Structures in Methanol Plant(12 & 14 area).

9) Painting of Urea plant phase III structure and pipe rack.

10) Painting of Urea Export Conveyor Gallery Structure Phases V & VI.

Inspection

Preventive Maint.

Mod/Capex

Routine Maintenance Budget Utilization 2% 2.4%

12%

83.6%

Consumable ns Local Contractors actors tor

Foreign Contractor n

Direct Use Materi Material

2016 Annual Report

29

Gulf Petrochemical Industries Co. BSC (C)

Plants Maintenance

In-house Spare Parts Manufacturing Actual Savings 450 400 350

Thousands (BD)

300 250 200 150 100 50 0

Actual

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

279,668

203,957

275,216

238,650

169,327

116,343

247,806

259,470

203,184

387,208

265,532

213,635

179,915

Employee’s Training & Development (Status from 01/01 till 30/11/2016)

In-House Spare Parts Manufacturing (Status from 01/01 till 30/11/2016)

Training and development of personnel continued to be at the top of the Maintenance Department’s agenda. In addition to familiarizing all maintenance staff with the Company’s Corporate Objectives and the department’s own objectives, 96% of all Bahraini Maintenance staff attended training. The training rate achieved was 57 hours per employee. Total training hours achieved: 4,868.

In-house spare manufacturing continued unabated with strict quality control and resulted in a saving of nearly US$ 476,775, taking the total saving to more than US$ 9.24 Million since the inception of the program in 2001.

Improvements & Achievements 1) All Maintenance Employees were involved in training courses, including SSHE and e-Learning courses.

2) 55 training courses (technical, non-technical, English and general) were attended by Maintenance staff.

3) 4,868 training hours were achieved against a target of 3,024 hours.

4) 57 training hours per employee were reached against a target of 36 training hours allocated for each employee.

5) Certified training courses were attended by 82 Maintenance Employees.

6) Integrated Management System: 19 documents were introduced & 43 reviewed during 2016.

30

2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

Sales and Exports

The

the positive pick up in import demand in the major market towards the end of the year, imparted much needed support to the market.

year 2016 was an extremely challenging and demanding year which saw unprecedented levels of uncertainty in world markets. The global fertilizer markets also had their fair share of challenges caused by oversupply, increased competition, limited demand and bearish macroeconomic conditions. Major new Ammonia and Urea capacities came on stream in the USA, Russia, Nigeria and Malaysia; while demand growth remained extremely modest.

On the petrochemicals side, Methanol being an energy substitute and having a strong correlation with international oil prices, started the year on a weak note but later on picked up and prices trended upwards on the back of higher demand from China’s emerging MTO sector.

The USA market largely regarded as the main GPIC export destination lost its attraction due to the significant increase in domestic capacity and less reliance on imports.

Major production cuts in China and Ukraine along with

During 2016, GPIC’s exports of Ammonia, Urea and Methanol totaled 1,188,824 MT, which were comparable to the budgeted figures for the year, and 9% higher than the previous year’s actual exports. Total Ammonia exported for

Ammonia Exports by Region 2016

Methanol Exports by Region 2016

15%

19%

22%

41% 19%

9%

47% 26%

2%

Total: 78,218 MT Korea

Taiwan

India

Total:l: 4 427,729 MT China

USA

U UAE

Singapore

China Taiwan

2016 Annual Report

31

Gulf Petrochemical Industries Co. BSC (C)

Sales and Exports

Urea Exports by Region 2016

tive Exports by Region 2016 Commulative 16%

12%

11%

15%

1% 1% 4%

2% 3% 4% 10%

16% 11% 51% 7% 7% 29%

Total: 682,878 MT

USA Thailand

France Brazil

Total: 1,188,824 MT USA

India Africa

Korea Africa

the year was 78,218 MT, while Methanol exports totaled 427,728 MT and granular Urea exports in bulk totaled 682,878 MT. The Company’s total exports of all three products were delivered on 64 ships. In addition, 15 tons of Methanol and 986 tons of bagged Urea was sold in the local Bahraini Market. Brazil proved to be the biggest importer for GPIC products during 2016, with nearly 348,473 MT, equivalent to 29% of the total exports for the year. Brazil was followed by the USA and Taiwan both at 16%.

This brought the total GPIC Ammonia and Methanol exports to world markets since the Company’s inception in 1985 to nearly 6.6 million MT of Ammonia and 12.8 million MT of Methanol. GPIC’s Urea exports since the takeoff of its Urea operations in 1998 now total around 11.5 million MT, while the cumulative total of all products

32

2016 Annual Report

China Thailand India

Singapore Taiwan UAE

Brazil France

exported from GPIC now exceed 30.9 million MT. In spite of all the difficulties and challenges faced during the year, GPIC still managed to positively conclude the year, both in terms of volumes of products exported to world markets and in achieving attractive netbacks on all its three products - Ammonia, Methanol and granular Urea.

During 2016, the Company was once again able to realize all its marketing goals and targets by successfully meeting all customer expectations and requirements, primarily with regards to 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.

Gulf Petrochemical Industries Co. BSC (C)

Human Resources Development

The Company's training policy posits the full development of Bahraini employees, both new and existing, as its ultimate objective. To achieve this goal, employees undergo training courses arranged and designed by the Academy of Leadership and Learning as a part of their continuous training and development, encompassing both practical and soft skills competencies through in-house, local and overseas training events.

In addition to the awards in training and developments GPIC received in the previous years, the Company was awarded for several times the award of outstanding institutions in training and human resources development from the Ministry of Labour. This achievement comes in recognition of the Company's role in the development of Bahraini human resources, through the provision of proliďŹ c opportunities for staff to participate in specialised courses inside and outside the Company and the support and encouragement for employee participation in relevant petrochemical industry workshops, forums and conferences in order to achieve the Company’s sustainable development objectives.

Number of Trainees Annual Average

80 70 60 50 Trainees

Training

and development of Bahraini employees is a major priority for GPIC management and 2016 marks 37 years of this commitment as the Academy of Leadership and Learning, previously the Training Centre, celebrated its 32nd anniversary. To keep pace with the development of its strategies and the future trends of training and development in the Company, the Minister of Oil and Gas Affairs and President of the National Oil and Gas Authority, HE Dr. Abdul Husain Bin Ali Mirza, inaugurated the Academy of Leadership and Learning on 8th November 2010.

40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Trainees 48

43

40

39

49

64

63

71

65

88

74

2016 Annual Report

32

33

Gulf Petrochemical Industries Co. BSC (C)

Human Resources Development

Number of e-Learning Users

Total Training Events

350

350

300

300

250

250

200

200

150

150

100

100

50

50 0

0 2010 81

2011 150

2012 173

2013 217

2014 284

2015 299

2016 323

Users

The Academy of Leadership and Learning utilises Competency-Based Training (CBT) in its approach to the training and development of staff. This scheme is considered as 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. This pioneering project assists in the creation of individual training plans for Company employees in addition to the annual training plan and leads to the development of each and every person in the Company.

The Academy of Leadership and Learning is also currently overseeing the development of 13 employees to qualify them for taking senior supervisory positions in the future.

Apart from the training of 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 the organisation of 140 training courses held in the Academy and GPIC Club, attended by a total of 1,609 employees. This is in addition to 100 training courses and conferences held in Bahrain with 355 employees in attendance and a total of 68 training courses outside Bahrain attended by 174 employees. These courses represented a total of 308 courses attended by 2,138 employees and trainees.

34

2016 Annual Report

2010 210

2011 177

2012 172

2013 338

2014 251

2015 296

2016 308

Users

GPIC has also recently adopted a Company-wide mentoring programme to provide guidance from all managers and superintendents to junior staff members. A total of 42 employees beneďŹ ted from this guidance and counseling process in 2016. This is in addition to the development and awareness programmes held by the Company for all new employees in the areas of health, safety, environment and quality.

GPIC has a separate scholarship scheme that strives to encourage employees to complete their academic studies.

In addition to this scheme, scholarships are offered to employees' children.

Gulf Petrochemical Industries Co. BSC (C)

Human Resources Development

In 2016, GPIC trained 185 students from various local and overseas universities, institutes and schools in various departments of the Company under the supervision of qualiďŹ ed employees. This came as part of the management's keenness to play its role towards the community and provide training opportunities for upgrading the technical, leadership, communication, planning and team work skills of young people engaged in their academic studies. This is a part of GPIC's commitment to the community and the development of a generation of young people who have enhanced skills and abilities to contribute to the country's growth and development.

The eLearning Centre provides support to the training and development plans in GPIC as it offers 55 training programmes in a wide range of topics such as communication skills, self-development skills, computer applications, leadership skills and project management skills. There are 21 technical programmes on offer for the upgrading of technical skills and knowledge for workers in the technical departments such as the Maintenance Department, Plants Operation Department and other technical areas in the Company. In addition, the Centre constitutes 113 comprehensive training courses in the areas of safety, health and the environment.

GPIC also has an electronic library through the Company's intranet. The library has numerous magazines, journals, periodicals and valuable publications. The Academy of Leadership and Learning Library has more than 1,800 titles covering a wide range of topics. In addition, the electronic library contains more than 190 e-books on different subjects.

2016 Annual Report

35

Gulf Petrochemical Industries Co. BSC (C)

Official Visits to GPIC Complex

H.E. the Egyptian Ambassador to the Kingdom of Bahrain

H.E. the United Arab Emirates Ambassador to the Kingdom of Bahrain

H.E. the Italian Ambassador to the Kingdom of Bahrain

H.E. Mr. Georgi Boltavchenko, Governor of St. Petersburg in the Russia Federation

H.E. Mr. Yousef Abdullah Al-Benyan, SABIC Vice-Chairman and Chief Executive Officer

H.E. Mr. Abdullatif Al Farhoud, PIC Chief Executive Officer

36

2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

OfďŹ cial Visits to GPIC Complex

H.E. the French Ambassador to the Kingdom of Bahrain

H.E. the United Kingdom Ambassador to the Kingdom of Bahrain

H.E. United States Ambassador to the Kingdom of Bahrain

European Parliament Delegation

H.E. Mr. Anas Kentab, SABIC’s Executive Vice President, Agri-Nutrients

2016 Annual Report

37

Gulf Petrochemical Industries Co. BSC (C)

OfďŹ cial Visits to GPIC Complex

Sudanese National Council Chairman

The National Institution of Human Rights Delegation

National Authority of QualiďŹ cations & Quality Assurance of Education & Training

38

2016 Annual Report

Bahrain Institute for Banking and Finance (BIBF) Students

Gulf Petrochemical Industries Co. BSC (C)

Exhibitions

Middle East Petrotech Conference and Exhibition

45th IFTDO World Conference & Exhibition

Fourth Maintenance and Reliability Conference

11th Annual Gulf Petrochemical and Chemical Association (GPCA) Forum and Exhibition

22nd Annual Forum of the Arab Federation of Fertilisers

29th AFA Int'l. Fertilizer Technology Conference & Exhibition

2016 Annual Report

39

Gulf Petrochemical Industries Co. BSC (C)

Exhibitions

Bahrain International Garden Show

16th Middle East Corrosion Conference and Exhibition

SABIC Second Technical Conference in Jubail

Arab Award for Social Responsibility Forum 2016

China Petroleum & Chemical International Conference

Global IFA Technical Symposium

40

2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

Ladies Working Committee

Bahrain Mobility International Center

Salmaniya Medical Complex

King Hamad University Hospital

School Bags Distribution to “Okbaa bin Nafaa Primary Boys School”

School Bags Distribution to “Al Khansa Girls Primary School”

2016 Annual Report

41

Gulf Petrochemical Industries Co. BSC (C)

Youth Committee

H.E. Mr. Yousef Abdullah Al-Benyan, SABIC Vice-Chairman and Chief Executive OfďŹ cer meets GPIC Youth

H.E. Mr. Yousef Al Zamel, GPIC Deputy Chairman meets GPIC Youth Committee

H.E. Mr. Ibrahim Al Musaiteer, GPIC Managing Director meets GPIC Youth Committee

Eid Visit to National Bank of Bahrain Elderly Center

42

2016 Annual Report

Royal Charity Organization orphans at GPIC Club

Gulf Petrochemical Industries Co. BSC (C)

Corporate Social Responsibility

Bahrain Badminton & Squash Federation

INJAZ Bahrain

Royal Charity Organization

CSR Regional Network

2016 Annual Report

43

Gulf Petrochemical Industries Co. BSC (C)

Corporate Social Responsibility

Supreme Council for Women

Mohammed bin Khalifa bin Salman Cardiac Centre

Rashid Equestrian and Horse Racing Club

44

2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

Corporate Social Responsibility

Bahrain Table Tennis Association

Bahrain Free Labor Unions Federation

Bahrain Tennis Club

2016 Annual Report

45

Gulf Petrochemical Industries Co. BSC (C)

Social Events & Activities

37th Annual Day Celebration

Family Safety, Health & Environment Celebration

Beach Cleaning Campaign

46

2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

Social Events & Activities

Charity Clothing Drive

Labour Union - Employees’ children outstanding ceremony

National Day Celebration

2016 Annual Report

47

Gulf Petrochemical Industries Co. BSC (C)

Social Events & Activities

General Employees Meeting (GEM)

Eid Al Fitr Celebration at GPIC Club

Open Ramadan Volleyball Tournament

48

2016 Annual Report

Gulf Petrochemical Industries Co. BSC (C)

Social Events & Activities

Green Wave (UNEP)

Blood Donation

Football Tournament for GPIC Employees' Children

7-A-Side Football Tournament

Interdepartmental Basketball Tournament

2016 Annual Report

49