Business Continuity and Enterprise Resilience
A N N U A L
R E P O R T
2 0 2 0
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2020
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www.gpic.com
www.gpic.com
ANNUAL REPORT
2020
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 Nawaf Al Ahmad Al Jaber Al Sabah Amir of the State of Kuwait
Gulf Petrochemical Industries Co. BSC (C)
Due to the unpredictable global economic conditions, prices have varied during the year, however GPIC was still able to achieve profitability H.E. Dr. Ahmed Bin Ali Al Sharyan - GPIC Chairman
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Annual Report 2020
Gulf Petrochemical Industries Co. BSC (C)
CONTENTS
The Chairman’s Message The Board of Directors The Board of Director’s Report to the Shareholders Corporate Governance Executive Management President’s Foreword GPIC’s Vision, Mission & Corporate Values Sustainability
4-5 6 7-8 9 - 10 11 12 - 13 14
Safety, Health and Environment
17 - 19
Management Systems
20 - 21
Production
22 - 23
Technical Services Support
24 - 27
Plants Maintenance
28 - 29
Procurement & Warehousing
30 - 31
Sales and Exports
32 - 33
Human Resources Development
34 - 36
15 - 16
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Gulf Petrochemical Industries Co. BSC (C)
THE CHAIRMAN’S MESSAGE
GPIC has continued to work hard to build on its successes and has received praise and recognition from Shareholders for its relentless and driven attitude to sustainability, corporate social responsibility and beyond excellent results H.E. Dr. Ahmed Bin Ali Al Sharyan Chairman
At
the end of 2020, on behalf of the Board of Directors I would like to congratulate the company’s Shareholders, the President, members of the Executive Management and all employees for their remarkable role during an exceptional year, with all the difficulties, challenges and complexities it brought due to the outbreak of the Coronavirus pandemic. Despite of such a difficult year, GPIC continued to operate efficiently and effectively adhering to the highest safety standards, as it achieved a cumulative total of safe working without a lost time accident, amounting to 33.4 million manhours for the company’s employees and contractors. In terms of production, GPIC produced a total of 1،632،765 tonnes of Ammonia, Urea and Methanol during 2020. Due to the unpredictable global economic conditions, prices have varied during the year, however GPIC was still able to achieve profits that amounted to $4.5 million by the end of the year. GPIC continued to attain distinguished and diverse achievements. These were not just in the Kingdom of Bahrain but also the Arab world and beyond. GPIC received the Global
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Annual Report 2020
Safety Award from the British Safety Council; the RoSPA award in safety from the United Kingdom, the Arabia CSR Network Award - for large companies in the corporate sector - for the best company in the Arab region in terms of sustainability and social responsibility. GPIC was also honoured with the Arabia CSR Network Award for Partnership and Cooperation - Environmental Research Sector, as well as the gold medal presented by the International Fertilizer Association. The company’s procurement team won the Procurement Champion Award for 2020 from the Middle East Procurement Conference. GPIC’s President was chosen as an Ambassador by the Regional Network for Social Responsibility for GPIC’s efforts to support global efforts to combat the emerging Coronavirus. He was also granted honorary membership of the World Federation for Social Responsibility. Along with all the challenges of the pandemic, GPIC continued to maintain its strong investment in human development throughout 2020, structuring effective remote training sessions and courses to build the capability of GPIC’s future leaders.
Gulf Petrochemical Industries Co. BSC (C)
In addition, due to its responsible and safety reputation GPIC has been exempted from monitoring by the Supreme Council for the Environment when importing and clearing chemicals during the standard customs clearance operations; this means it has been put on the White List. GPIC has continued to work hard to build on these successes and has received praise and recognition from its Shareholders for its relentless and driven attitude to sustainability, corporate social responsibility and beyond excellent results. The company continued to build on the enhancement and streamlining of internal processes as well as focus on cost optimization and business continuity. This outstanding performance, and continuous achievements, would not have been possible without the grace of God Almighty and the support and guidance of the Kingdom of Bahrain’s wise leadership that has steered it to create a fertile investment environment. We express our gratitude to His Majesty King Hamad bin Isa Al Khalifa, may God protect him and HRH Prince Salman bin Hamad Al Khalifa Crown Prince, Deputy Supreme Commander and Prime Minister, may God protect him. We ask God Almighty to make them an asset and a support for this country and the loyal people and to perpetuate the blessings of security and safety for all.
Our thanks also go to all government institutions in the Kingdom of Bahrain and our honorable shareholders – the Oil and Gas Holding Company in Bahrain (Nogaholding), SABIC Agri-Nutrients Investment Company, Kingdom of Saudi Arabia, and the Petrochemical Industries Company (PIC) of Kuwait for their continuous support and encouragement. Sincere appreciation also for all the efforts made by the members of the Board of Directors. Their wise policies, inspired opinions and high levels of professionalism that have had a significant impact on the company’s success and prosperity. Finally, my sincere thanks and deep gratitude go to the President of GPIC, members of the Executive Management and all our employees for their loyalty, dedication to work and their efforts, which made all of these achievements a reality.
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
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H.E. Mr. Ahmed Mohammed Alumar Board Member
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H.E. Mr. Hamad Dekheel Alsubaie Deputy Chairman
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H.E. Mr. Shafi Taleb Alajmi Board Member
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H.E. Mr. Samir bin Ali Al-Abdrabbuh Managing Director
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H.E. Mr. Salem Ali Alazmi Board Member
4
H.E. Shaikh Fahad Bin Salman Al Khalifa Board Member
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H.E. Mr. Ali Ahmed Alghamdi Board Member
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Annual Report 2020
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Gulf Petrochemical Industries Co. BSC (C)
BOARD OF DIRECTOR’S REPORT TO SHAREHOLDERS
The com company produced a total of 1,632,765 metric of Ammonia, Methanol and Urea during the tonnes o year, an increase of 9.68 percent in comparison son with budget GPIC’S
Board of Directors congratulates its Shareholders, the company’s President, members of the Executive Management Team and all employees for their remarkable role during 2020, an exceptional year, with all the difficulties, challenges and complexities it brought about due to the outbreak of the Coronavirus pandemic. However, due to the co-operation of all GPIC stakeholders and thanks to God Almighty, we were able to overcome all challenges and difficulties to achieve records at all levels despite of all indications and expectations pointing to negative effects and losses. The year 2020, thanks to God Almighty, showcased various successes at the local and international levels. Among them was GPIC achieving a new record of 33.4 million hours without a lost time accident for its employees and contractors, and maintaining a clean record of no accidents since May 2002. In documenting this successful journey, The Board of Directors is pleased to present to the Shareholders its Annual Report for the year 2020, including achievements it made as well as activities related to occupational safety, health and the environment.
The company produced a total of 1,632,765 metric tonnes of Ammonia, Methanol and Urea during the year, an increase of 9.68 percent in comparison with budget. This translated to an estimated increase of 2.86 percent after excluding the increase in production due to the postponement of Turnaround activities until 2021, which was due to the inability to get qualified manpower because of the corona virus pandemic. Exports also reached a total of 1,222,834 metric tonnes of Ammonia, Methanol and Urea, an increase of 9.85 percent to what had been forecasted for the year. This translated to an increase of 2.51 percent after excluding the increase in production due to postponing Turnaround. A total of 447,635 metric tonnes of Methanol was exported and sold, of which 713 metric tonnes was sold to the local market in the Kingdom of Bahrain. A total of 71,306 metric tonnes of Ammonia was also exported while in the case of Urea, the total export was 705,444 metric tonnes, of which 837 metric tonnes was packed in bags to be distributed in Bahrain to support the Kingdom’s agricultural sector. Close cooperation with GPIC’s marketers, SABIC of Saudi Arabia and PIC of Kuwait, contributed to the smooth and
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Gulf Petrochemical Industries Co. BSC (C)
continuous flow of exports as 1,222,834 metric tonnes of the company’s products were shipped on board 64 vessels. The company received several awards during the year, including: l
Global Safety Award from the British Safety Council.
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RoSPA award in safety from the United Kingdom.
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The Arabia CSR Network Award - for large companies in the corporate sector - for the best company in the Arab region in terms of sustainability and social responsibility.
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The Arabia CSR Network Award for Social Responsibility for Partnership and Cooperation - Environmental Research Sector.
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The gold medal presented by the International Fertilizer Association.
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The company’s procurement team has won the Procurement Champion Award for 2020 from the Middle East Procurement Conference.
l
The President of the company was chosen as an ambassador by the Regional Network for Social Responsibility for his efforts to support global efforts to combat the emerging Coronavirus.
l
The President of the company was granted honorary membership of the World Federation for Social Responsibility.
Despite the challenges, the company managed to achieve a $4.5 million net profit for 2020. There is no doubt of the prestigious reputation the company enjoys at all levels, which would not have been possible without the grace of God Almighty and the direction and support it receives from the Kingdom of Bahrain’s wise leadership. The company’s Board of Directors also extend their sincere thanks and gratitude to His Majesty the King, Hamad bin Isa Al Khalifa, may God protect him, and His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and Prime Minister, May God protect him; for all their support and assistance. Their Excellencies the Board of Directors also extend their sincere thanks and gratitude to the shareholders – The Oil and Gas Holding Company in Bahrain (Nogaholding), Saudi-based SABIC Agri-Nutrients Investment Company and Kuwait-based Petrochemical Industries Company, for their close cooperation, high professionalism, and unlimited eagerness to secure GPIC’s continuous success in operational and marketing operations. Their Excellencies the Board of Directors also commends the sincere efforts of the company’s President, members of the Executive Management and all employees who worked as a team and in the one-family spirit to preserve GPIC status.
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Annual Report 2020
Gulf Petrochemical Industries Co. BSC (C)
CORPORATE GOVERNANCE
GPIC’s
Corporate Governance system is based on three fundamental components namely; Principles, Code of Conduct and Policies. The system is based on 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.
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 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.
Committee’s Composition All Committees are comprised of at least three Directors. Each Director is nominated by The Oil and Gas Holding Company (Nogaholding), SABIC Agri-Nutrients Investments Company and Petrochemical Industries Company (PIC), representing the three shareholders.
Role of the Remuneration, Nomination and Governance Committee The Committee is responsible for overseeing the overall remuneration and nomination process, as well as ensuring the strength of the organization’s governance. The Committee’s main task is to ensure 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 an overview of Gulf Petrochemical Industries Co. (“GPIC”) processes. The Committee is tasked with overseeing such responsibilities such 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)
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 GPIC’s Internal Audit team 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. It contributes to a sound control environment through monitoring the prescribed control procedures. An effective internal audit function can assist all members of 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 systems.
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Annual Report 2020
The internal audit function can play a prominent role in enhancing the overall control environment within the Company. When an organization, such as GPIC, reaches a certain size or complexity, 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 Section, effectively established and resourced, provides reasonable assurance to the Board of Directors 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 team reports directly to the Board’s 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
1
Dr. Abdulrahman Abdulhussain Jawahery President
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Mr. Jassim Ahmed Darwish Maintenance Manager
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Mr. Fadhel Malalla Alansari General Manager Corporate Support
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Mr. Bader Mohammed AlMansoori Technical Services Manager
3
Mr. Yasser Abdulrahim Alabbasi General Manager Manufacturing
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Mr. Ahmed Mubarak Alarabi Procurement and Warehousing Manager
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Mr. Adnan Abdulrazzaq Al Mahmood Information Technology and Knowledge Manager
10 Mr. Jehad Ali Khalfan Finance and Marketing Manager
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Mrs. Najat Mohamed Sharif Human Resources and Corporate Communications Manager
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Mr. Khalid Yusuf Al Bin Ali Plants Operation Manager
Mr. Jamal Ali Al Shawoosh Safety, Security, Health and Environment Manager
12 Mr. Omar Naser Al Bastaki Secretary to the Board and Chief Internal Auditor
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Gulf Petrochemical Industries Co. BSC (C)
PRESIDENT’S FOREWORD
Our resil resilience to overcome this year’s challenges is down to our incredible Board of Directors, our employees through their loyalty, discipline and professionalism
Dr. Abdulrahman Jawahery President
This
year, as the world faced a crisis like no other, GPIC, its Shareholders, the Executive Management Team and all its employees swung into action. The world was brought to its knees by the coronavirus disease (COVID-19) pandemic that has taken a horrific toll on individuals, communities and societies, with the most vulnerable disproportionately affected. In response to the crisis, at GPIC we quickly focused on our most critical needs and the safety and sustainability of the plants and production. We streamlined our procedures and for as many employees as possible we rapidly embraced a working from home and remote meeting culture to speed up decision-making, policy discussions, technical assistance, and training. Despite all the challenges posed, we have been able to turn 2020 into a successful year in terms of safety, health, environmental protection and reliability of plants. Our resilience to overcome this year’s challenges is down to our incredible Board of Directors, our Executive Management Team, our employees through their loyalty, discipline and professionalism have contributed significantly
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Annual Report 2020
to these remarkable achievements. The ideas, the skills and the dedication of our workforce, continues to make GPIC a pioneer in best practice and sustainability – and has done so for the past 41 years. Throughout 2020, our entire business has continued to implement and seek out new opportunities in optimizing costs, enhancing safety and operating our plants with the utmost efficiency and effectiveness in production and quality of product. We know in these uncertain times we will continue to have significant challenges, and as the world recovers, our future lies in our continued pursuit of operational excellence and in creating innovative new ways of working. Some of the many highlights of this year have been the awards and recognition we have received in the areas of occupational safety and, GPIC continues to be an exemplary beacon of best practice in this regard. GPIC received the Global Safety Award from the British Safety Council; the RoSPA award in safety from the United Kingdom, m,
Gulf Petrochemical Industries Co. BSC (C)
the Arabia CSR Network Award - for large companies in the corporate sector - for the best company in the Arab region in terms of sustainability and social responsibility. We also received the The Arabia CSR Network Award for Partnership and Cooperation - Environmental Research Sector, as well as the gold medal presented by the International Fertilizer Association. The company’s procurement department has won the Procurement Champion Award for 2020 from the Middle East Procurement Conference. GPIC was chosen as an ambassador (a position held by the President) by the Regional Network for Social Responsibility for GPIC’s efforts to support global efforts to combat the emerging Coronavirus. GPIC was also granted honorary membership of the World Federation for Social Responsibility.
remote training sessions and courses to build the capability of the company’s future leaders.
The company continued to maintain its strong investment in people development throughout 2020, structuring effective
Dr. Abdulrahman Jawahery President
We ask Almighty God to enable us to continue succeeding as an organization and as a country and, we thank our Kingdom’s wise leadership, which has enabled us to achieve all of our tremendous success.
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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 To be a world-class petrochemical and fertilizer company of choice, recognised for excellence.
MISSION
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To produce high quality petrochemical and fertilizer products
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To grow through successful partnerships and joint ventures
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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
VALUES
• • • • • • • • •
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Annual Report 2020
Excellence Integrity Respect Transparency Safety Professionalism Social Responsibility Creativity Team Work
Gulf Petrochemical Industries Co. BSC (C)
SUSTAINABILITY
Our world today is dealing with a crisis of monumental
infectious diseases. Achieving SDG 3 (Good Health & Wellbeing) will mean strengthening the capacity of countries for early warning, risk reduction and management of national and global health risks.
proportions. The novel coronavirus is wreaking havoc across the globe, upending lives and livelihoods. The cost of the pandemic in terms of loss of human lives is painful, but the effects on the global economy and on sustainable development prospects are also worrying.
The proactive steps that GPIC has taken during the past months, highlights how seriously the company is taking the COVID-19 challenge and in doing so is addressing SDG 3 and other Sustainable Development Goals.
GPIC is mindful of the fact that while we must scale up the immediate health response and curb the spread of COVID19, the response to the pandemic cannot be unassociated from the SDGs. Indeed, achieving the SDGs will put us on a steady path to deal with global health risks and the emerging
GPIC believes that amid the coronavirus pandemic, the SDGs will help us build back better. The challenges posed by COVID19 should rather spur us to accelerate and deepen our efforts during this Decade of Action to ‘recover better’, and build a healthier, safer, fairer and a more responsible world.
COVID-19 and the Sustainable Development Goals (SDGs)
Scaling new heights in Sustainability The year 2020 has been extremely challenging amid the COVID-19 pandemic. Whilst much has changed in the world and in our Company over the past twelve months, our commitment to Sustainability and Sustainable Development remains firm. At the global level, GPIC leadership and employees attended the Uniting Business Live Forum hosted virtually by UN Global Compact in September 2020. As part of this event
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Gulf Petrochemical Industries Co. BSC (C)
and at the request of the United Nations Global Compact, GPIC’s President signed a Statement from Business Leaders for Renewed Global Cooperation to demonstrate support for inclusive multilateralism. Utilizing the globally established GRI framework, we have issued our fifth Sustainability Report in March 2020. This Report is also our UN Global Compact Communication on Progress (CoP) and serves the UN’s 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’s Climate Change Committee, whose members are certified on IPCC GHG Inventory Software have issued the Company’s 2019 GHG Inventory Report. 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 and IFA continued to be significant. We continued to benchmark ourselves with the best in class and won the Arabia CSR Network Award 2020 in the Large Organizations Category and the Partnerships and Collaboration Category for our outstanding achievements in Corporate Social Responsibility and Sustainability in the MENA
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Annual Report 2020
region. Winning the Arabia CSR Network Award for the sixth consecutive year 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, partnerships 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, HEALTH AND ENVIRONMENT
Combatting COVID-19 with Resilience
We
are successful at GPIC because Safety, Health and Environmental (SHE) management systems are not just programmes; they are a way of life. As a forward-looking petrochemical and fertiliser company, GPIC recognises that our commitment to SHE is the foundation for building and maintaining trust and public confidence. It is part of being a good citizen, a good neighbour and a good partner. SHE excellence drives our commitment to sustainable business and defines whom we are and what we stand for. By instilling a culture that ensures the well-being and safety of our employees, we empower them to focus on the details and to do what is right first time, every time. This leads to improved performance and reliable, consistent and predictable delivery of our high-quality products. GPIC considers the safety of its employees and the neighbouring communities as one of its top priorities and responsibilities. We ensure the highest standards of health and safety at our manufacturing facilities, monitoring carefully every potential risk to our operations and our employees so that we can provide a safe working environment for our people and the community at large. We invest significantly into projects related to the safety, environmental care and the reliability of our equipment and facilities. “Zero Harm” continues to be our vision. As we move forward, our resolve to achieve our goals have intensified. “Zero Harm” is
not restricted to rates, statistics, numbers or metrics, although these are important ways to measure our progress. It is about our people, and keeping our people, facilities, environment and communities safe. GPIC also has a well-developed health strategy focused on prevention, quality, health management systems and advocacy. Employees are provided with the tools and information they need to take action to invest in their personal health and the health of their families. The company also works to establish a “culture of health and well-being” through additional policies and practices. Maintaining the safety and health of our employees, their families and our contractors and continued business resilience during 2020 amidst the COVID-19 pandemic was our biggest challenge and achievement. We have so far successfully tackled the challenge of COVID19 through robust risk management, resilience and discipline. We proactively identified the pandemic outbreak caused by COVID-19 as one of the GPIC’s enterprise risks using the Bowtie methodology, setting a number of preventive and mitigating measures to deal with the risk. A Business Continuity Plan was developed to ensure the safety of the workforce and the continuity of the business. A Crisis Management Team (CMT) chaired by the President was established to manage the Pandemic Outbreak.
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Gulf Petrochemical Industries Co. BSC (C)
Maintain Maintaining the safety and health of our employees, and our contractors along with continued their families fam business resilience during 2020 is our big biggest gest achievement
So far GPIC has been extremely successful in limiting the COVID-19 related infections to the minimum. This was made possible by the strict implementation of preventative measures, adherence to rules and regulations, company-wide awareness, robust inspections and auditing. These continual improvement efforts culminated in achieving a record +33.4 million working hours for its workforce and contractors without any lost time accident, exceeding 16 years of safe work. Additionally, we did not have any Tier 1 and Tier 2 process safety incidents, zero reportable environmental incidents and zero security breaches and incidents. During such challenging times, GPIC won the British Safety Council International Safety Merit Award and the RoSPA Patron’s Award for 28 consecutive gold sector awards. In 2020
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Annual Report 2020
GPIC also won the Arabia CSR Network Award for the 6th consecutive year in the large business category and also two awards in the partnerships and collaboration category. The following is a list of significant Safety, Health and Environment (SHE) achievements during 2020: l
+ 33.4 million man hours without lost time accidents
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GPIC won the RoSPA Patron’s Award (28 consecutive golds) for the year 2019 and the British Safety Council International Merit Safety Award for its excellence in Health and Safety.
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There were Zero reportable environmental incidents and Zero Tier 1 and Tier 2 process safety incidents and there were no security incidents or breaches.
Gulf Petrochemical Industries Co. BSC (C)
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As part of emergency plans 10 Fire Plans were prepared for high risk scenarios and 12 Fire & Safety and 6 Security Mock Drills were carried out as part of emergency response training. Safety glasses were made mandatory for all employees and contractors in process areas. Civil Defense carried out a successful audit of Chemical warehouses at GPIC.
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ISPS and PFSO training course and certification for safety supervisors and security staff.
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Digitization: Virtual training, webinars, interviews, external and internal audits.
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Security Management System enhancement project is in progress.
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GPIC won the Arabia CSR Network Award for the 6th consecutive year.
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GPIC Engineers attended training workshops on Polychlorinated Bi-phenyl (PCBs) and Ozone depleting substances and refrigerants.
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GPIC attended National level workshop on Incident Command System (ICS) related to oil spills.
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Waste recycling continued during 2020 and 8 tonnes of paper, cardboard, plastic and Aluminum was recycled.
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Energy efficient LEDs replacement project continued and in 2020 alone we installed 619 LEDs with an energy savings of 67.95 MWH/Y and a GHG reduction of 39.19 TONNES CO2/Year.
workshops,
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GRI Sustainability Report 2020 was issued in March 2020.
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Self-assessment of Responsible Care codes of management practices was completed.
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Participated in International Fertilizer Association (IFA) safety and environment benchmarking.
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Gulf Petrochemical Industries Co. BSC (C)
MANAGEMENT SYSTEMS
In
order to enhance competitiveness in the Oil and Gas industry, which is witnessing rapid developments, especially with the fast spread of the global pandemic of Corona Virus “COVID-19”, which put many governmental and private sectors in a very critical situation. It was necessary for the industries related to oil and gas sector and all other industries to work hard and with an extra efforts on adopting new and different innovative processes and methods not been previously used in order to maintain safe and sustainable operations.
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Therefore evaluation processes, follow-ups, and continuous monitoring of the performance of Management systems has become the key and basic pillar of operational success for the companies to be able to combat the effects of the pandemic. GPIC’s Executive Management held remote and periodic Management meetings to regularly review and follow up on the performance and efficiency of its Integrated Management Systems (PAS 99). This includes the ISO 9001 Quality Management System, ISO 14001 Environment Management System, the ISO 45001 Occupational Health and Safety Management System, and the Environment System, the ISO RC
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14001 Responsible Care Management System, the ISO 27001 Information Security Management System, the ISO 22301 Business Continuity Management System, and the ISO 50001 Energy Management System. As a result, GPIC created a roadmap to further improve and continuously develop the management systems, as well as ensuring there is a robust schedule to complete all reviews and external audits. In spite of the challenges brought on by the pandemic, GPIC was able to achieve success in renewing its Management Systems Certificate. The Certified External Auditors praised the GPIC Executive Management commitment in implementing and continual improvement of the standards. The company’s Business Resilience Committee, in coordination with the Executive Management Team, played a prominent role in managing the crisis brought on by the pandemic and followed up on the smallest details to minimize risks that were identified. The committee had carried out a thorough analysis of the pandemic outbreak risk caused by the corona virus at early stage and identified the consequence of the risk and mitigation controls to prevent/ reduce the impacts of the pandemic. Business continuity plans were prepared to ensure safe and continuity of the business. This was in conjunction with closely following up and coordinating with the appropriate authorities. This included following all government guidelines and laws and to ensure GPIC’s conformity with the current COVID-19 situation.
20 Annual Report 2020
Gulf Petrochemical Industries Co. BSC (C)
Although 2020 was challenging, it had positive effects on internal and external auditing systems. This was because the remote work methodology proved to be very effective and feasible.
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1
ISO 9001 Quality Management System Certificate
2
ISO 14001 Environment Management System Certificate
3
ISO 45001 Occupational Health & Safety Management System Certificate
4
ISO 27001 Information Security Management System Certificate
5
ISO 22301 Business Continuity Management System Certificate
6
RC 14001 Responsible Care Management System Certificate
7
ISO 50001 Energy Management System Certificate
8
PAS 99 Integrated Management systems Certificate for (ISO 9001, ISO 45001 & ISO 14001)
9
IFA Protect & Sustain Product Stewardship Certificate
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10 Methanol Halal Certificate
11
ISO 17025 Testing laboratories Management System Certificate.
12 ISO 17020 Inspection Management System Certificate 13 ISO 17025 Calibration Management System Certificate.
21
Gulf Petrochemical Industries Co. BSC (C)
PRODUCTION
Plants Operation
l
Methanol plant completed 987 days of continuous daily production run by the end of December 2020 (the highest ever, the previous record was 961 days recorded in 2012).
l
The Overall On-stream factor was 99.8%.
l
The total cumulative combined production since 1985 achieved 44 million tonnes for the three products.
l
The total cumulative combined exported since 1985 achieved 36 million tonnes for the three products.
l
As a part of GPIC’s commitment towards encouraging and supporting Bahrain’s economy, GPIC continued sustainable supply of Methanol to local market (713 MT of Methanol sold locally during 2020).
2020
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. All plants registered excellent records in regards to performance factors (On-stream factor, Capacity Utilization and Utilization Factor).
Year 2020 main highlights: l
Ammonia plant completed 979 days of continuous daily production run by the end of December 2020 (the highest ever, the previous record was 950 days recorded in 2012).
l
Urea plant completed 981 days of continuous daily production run by the end of December 2020 (the highest ever, the previous record was 941 days recorded in 2003).
Product
Production figures The table below gives summary of the various budgets versus actual production figures.
Budget (tonnes)
Actual (tonnes)
Variance
Ammonia
425,200
463,875
9.1 % Higher
Methanol
412,360
450,097
9.2% Higher
Urea
651,100
718,793
10.4% Higher
Ammonia to Urea
371,127
405,427
9.2% Higher
1,113,270
1,223,501
9.5% Higher
1,488,660
1,632,765
9.7% Higher
Saleable production Total production
Production Performance 2020 - (Production Million tonnes) 1.80 1.63 1.49
1.20 1.22 1.11
0.72
0.60
0.65 0.43
0.46
0.45 0.41
0.37
0.41
0.00 Ammonia
Urea
Methanol
Budget
Total
Actual
Saleable
Ammonia to Urea
1. The combined production was 9.7% higher than the budgeted figure. 2. Since 1985, cumulative total of 14.9 million tonnes of Ammonia and 14.6 million tonnes of Methanol production was achieved by end of December 2020. 3. Since 1998 until end of 2020, 14.4 million tonnes of granular Urea was manufactured.
22
Annual Report 2020
Gulf Petrochemical Industries Co. BSC (C)
Plants Key Performance Indicators: The following graphs indicate sustained high level performance of the plants. Plants Operation - Onstream Factor % 150
100
2019
2020
2017
2018
2015
2016
2015
2016
2015
2016
2013
2014
2013
2014
2013
2014
2011
2012
2010
2009
2007
2008
2005
2006
2004
2003
2001
2002
1999
2000
1997
1998
1995
1996
1993
1994
1991
1992
1989
1990
1987
1988
1985
1986
50
Plants Operation - Capacity Utilisation % 150
100
2017
2019
2020
2019
2020
2012 2012
2018
2011 2011
2017
2010 2010
2018
2009 2009
2007
2008 2008
2006
2005
2004
2003
2001
2002
1999
2000
1997
1998
1995
1996
1993
1994
1991
1992
1989
1990
1987
1988
1985
1986
50
Plants Operation - Utilisation Factor % 150
100
Methanol
2007
2006
2005
2004
2003
2001
Urea
Management systems: l
2002
1999
2000
1997
1998
1995
1996
1993
1994
1991
1992
1989
1990
1987
1988
1985
Ammonia
1986
50
Integrated Management system, Energy Management system, Enterprise Risk Management system and Process Safety Management system were followed rigorously throughout the year. They were audited by both internal and external auditors and the performance was judged highly satisfactory at all levels. The above charts reflect the same.
Ships loaded during 2020: (Total 64 ships) Urea ships: (20 ships loaded) Methanol ships: (37 ships loaded) l Ammonia ships: (7 ships loaded) l Urea local sale: 987 tonnes l l
Export 2020 (Tonnes)
Exports: l
l
The Product Handling & Export section provided uninterrupted support by loading the cargoes within the allocated time throughout the year. Throughout the year Ammonia, Methanol and Granular Urea were produced to the highest quality specifications, for the premium market. A total of 1.22 million tonnes of product was exported during the year 2020.
700,000 698,209
600,000 500,000 447,634
400,000 300,000 200,000 100,000 71306
0 Ammonia
Urea
Methanol
23
Gulf Petrochemical Industries Co. BSC (C)
TECHNICAL SERVICES SUPPORT
COVID-19 – Technical Services “Due to the ongoing COVID-19 pandemic and it’s associated impact, precautionary measures were implemented to protect the GPIC workforce which includes dividing workforce into groups; employees working at the complex and employees Working from Home (WFH). This was to minimize contact, and to ensure the sustainability of plant operations. Contractor manpower at the complex was
Engineering Section
The
year 2020 was another challenging year for the Engineers, as it was a pre-shutdown year where all approved Capex Projects and modifications have to be processed to meet the target date for the scheduled Turnaround. Moreover, due to COVID-19 pandemic, most of the engineers had to work from home. Despite this, all out efforts were exerted in processing the approved Capex Projects and modifications. Due to the pandemic, engineering staff conducted kick-off meetings & FATs meetings with Third Party Inspectors virtually.
24
Annual Report 2020
reduced to an absolute minimum. This ensured all major preventative activities were executed on time and as planned. All the meetings and audits continue to be held virtually online to ensure no physical contact between employees. Video conferencing & online seminars have been encouraged during the pandemic.”
During 2020, 12 Capital Projects were approved. Some of the critical Capex Projects that are under detailed engineering study are listed below: l l
l
l
Refurbishment of Boiler B-5203. Replacement of Switch Boards in Substation #2 and Desalination Unit. Impact of installing Steam Generator Coil EB-1202-5 in Methanol Plant Reformer. Procurement of MUG Turbine MT-1401 HP outer casing with exhaust casing.
Gulf Petrochemical Industries Co. BSC (C)
Capital Expenditure (in USD) 60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0 2004 2005 2006 2007 2008 2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Budgeted figure
l
l
l
Procurement of Ammonia Refrigeration Compressor K-7101A. Replace Electronic Governor for CO2 Compressor Turbine MT-8101 in Urea Plant. Improving Security Management System
Additionally, 125 modifications were also completed. All the modifications undergo a rigorous Process Hazards Assessment before being put into operation to ensure the safety and reliability of the plants.
Laboratory In addition to the above, Engineering spearheaded the energy optimization drive in the complex and the following two actions/modifications were implemented: 1
2
Utilization of all the surplus low pressure steam from the complex by stopping the Carbon Dioxide Recovery Plant boiler Optimization of Gas Turbine Load to minimize import electricity bill
During 2020, the laboratory assisted the production and contributed towards the smooth and reliable operation of the plant by successfully completing its total analytical requirements. Approximately 52,000 routine samples from various sections of the plant were collected and 176,500 parameters were analyzed. In addition to routine samples, approximately 4,400 special samples were analyzed for 11,500 different parameters.
Completed Modifications 250
200
150
100
50
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Budgeted figure
25
Gulf Petrochemical Industries Co. BSC (C)
The break-up of the samples and the parameters analyzed is shown in the chart below.
Scheduled Samples
Scheduled Parameters
Certificates issued for Ammonia, Urea & Methanol-2020 5
85
85
60000 55567
53010
50000
41373
40000 30000 26617
24651
20000
Ammonia
12240
10000
Methanol
Urea
8596
6747
0 Ammonia Plant
Methanol Plant
Special / Request Samples
Urea Plant
Utilities
Special / Request Parameters
Quality System International-USA (LQSi) for Urea product in line with ISO 17025 requirements. The performance of the laboratory in these tests has been ranked satisfactory by the agency mentioned above.
5000 4137
4000 3653
3000 2479 2579
2000
1000 821 258
313
749
563
259
0 Ammonia Plant
Methanol Plant
Urea Plant
Utilities
Miscellaneous
To ensure the excellence of our final product, monitoring the quality of the raw materials and analyzing samples at various intermediate stages of the process is conscientiously performed. The quality of all our final products is also checked before being shipped, loaded onto the trucks, tankers or ships. Approximately, 175 Quality Certificates related to three products (Ammonia, Urea & Methanol) were issued by the laboratory during the year. The breakdown of the Certificates issued for Ammonia, Urea & Methanol is shown in the figure below. Monitoring of environmental parameters is also regularly carried out by the laboratory as a part of the requirement of Bahrain’s “Supreme Council for Environment”. The Laboratory regularly participates in “Proficiency Tests” conducted by the world renowned agency M/s Laboratory
26
Annual Report 2020
In its pursuit to equip itself with latest analytical techniques, laboratory purchased new instruments during the year. All new instruments were commissioned and hands-on training was provided to the laboratory staff.
Gulf Petrochemical Industries Co. BSC (C)
Inspection The GPIC Inspection team continued with its proactive approach toward enhancing the reliability and mechanical integrity of its assets based on the industry best practices and as per latest revisions of international codes and standards. During the year 2020, a total of 231 inspection reports have been issued addressing both periodic preventive and corrective inspections of equipment. In addition to the above, 80 statutory equipments were recertified to comply statutory regulatory requirements. Also a total of 9 Root Cause Failure Analysis Studies (RCFA) have been conducted, resulting in actions and recommendations towards improving the reliability of the plants. GPIC inspection was again re-certified for ISO 17020:2012 accreditation conformity assessment with the requirements for the operation of various types of bodies performing inspections.
In line with GPIC’s policy on enhancing and updating the skills of employees, two of the Inspection Engineers were certified & other attended the certifying course through the American Petroleum Institute (API) certification programme. The integrity programme engaged international inspection agencies for the follow up inspections of CAPEX items being manufactured by internationally recognized workshop facilities in Italy, Spain, Netherlands, Poland, Belgium, Korea and UAE to ensure compliance with quality assurance requirements. At the same time, the inspection team is in the process of preparing for the upcoming Turnaround 2021 tasks, which comprises of acquiring the services of internationally recognized competent vendors and contractors to execute quality work and to ensure the enhancement of plant reliability.
27
Gulf Petrochemical Industries Co. BSC (C)
PLANTS MAINTENANCE
Maintenance Team Achievements during the year 2020
In
2020, the Maintenance team, in spite of the pandemic COVID-19 situation, 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 were set and monitored closely on quarterly basis, resulting in the achievement of nearly all objectives. In addition, the team has completed part of the routine maintenance activities as follows:
1.
Process Performance Effectiveness
l
88.2% of CMRT Completed.
l
73.4% of PMRT & INRT Completed.
l
100% Execution of Emergency Orders [2020 Target: Zero (0) pending, Total attended: 100%. 100% Execution of Urgent Orders.
l
Maintenance Index [PM/CM ratio] achieved: [Target: 70/30] - 70/30
l
l
PM Records Reviewed – 1,433
l
Rework: Maintenance Orders – 6
l
Slippage to Scheduled jobs – 27 Orders [25%]
l
In-house production Orders completed – 22
l
Saving of In-house Spare Parts Manufacturing for GPIC Warehouse (16%).
68% Maintenance Orders completed during year 2020
l
Received
: 9,825
2. Major Jobs Executed
Completed
: 6,366
l
Maintenance of Desalination Plant I & II activities are completed.
2001-2020 : In-House Manufacturing of spare parts - Actual Cost (BD)-Savings (BD) 4,550,000
500,000
4,050,000
450,000
3,550,000
400,000
3,050,000
350,000
2,550,000
300,000
2,050,000
250,000
1,550,000
200,000
1,050,000
150,000
550,000
100,000
50,000 Actual Savings Actual Cuml. Savings Cuml.
28
50,000 2001
2002
2003
2004
121,543 107,662 121,543 107,662
249,742 220,970 371,285 328,632
150,058 119,009 521,343 447,641
316,220 229,125 289,598 247,456 183,398 131,799 274,184 282,999 203,957 277,316 238,650 169,327 116,343 247,806 837,563 1,066,688 1,356,286 1,603,742 1,787,140 1,918,939 2,193,123 730,640 934,597 1,211,913 1,450,563 1,619,890 1,736,233 1,984,039
Annual Report 2020
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
286, 447 239,552 420,878 304,501 259,470 203,364 387,208 265,536 2,479,570 2,719,122 3,140,000 3,440,501 2,243,509 2,446,873 2,834,081 3,099,617
2015
2016
2017
2018
2019
2020
234,015 184,015 64,654 40,500 147,110 56,243 213,638 179,917 52,934 38,777 137,603 52,115 3,678,516 3,862,531 3,927,185 3,967,685 4,114,795 4,171,038 3,313,255 3,493,172 3,546,106 3,584,883 3,722,486 3,774,601
Gulf Petrochemical Industries Co. BSC (C)
l
MD-3301A/B Diesel Engines replacement (in progress)
l
Power brushing & Painting of Transfer tower, export conveyor & Ship Loader (in progress).
Routine Maintenance Orders (Completed)
l
All PM maintenance activities are completed as per Winter Schedule.
l
Replacement of L-7603 export conveyor belt.
l
Supply and installation of new control valve test bench.
l
T-1901 floor plates replacement.
l
Catalyst Replacement of R-9601 and R-9602 in Urea Formaldehyde, and Mechanical Cleaning of C-9601.
16%
0.5%
4%
79.5%
Corrective Maint
3. Contract Services l
Purchase Requisitions (PRs) raised.
= 46
l
Purchase Orders (POs) issued.
= 37
l
Term Contracts PRs raised
= 120
Preventive Maint
Others
Mods/CapEx
l
Employees were awarded with Certificate Courses - 52
l
Training Hours per Employee – 27.1 Hrs/employee
l
Term Contracts POs issued
= 160
l
Contractors & Suppliers engaged (Total)
= 142
l
Contractors & Suppliers engaged (Term Contracts) = 110
l
Number of Service Purchase Requisitions initiated – 95
l
Software Licenses
=
1
l
Number of Maintenance Orders raised – 3,637
l
GPR’s raised
=
2
l
Number of Modifications - 72
l
Number of Capex Packages – 47
l
Number of Turnaround Audits Conducted to date - 12 Periodic Audits + 1 Readiness Assessment + 1 Management Audit.
l
Number of New Suggestions / Lessons Received – 137
4. Training & Development l
Maintenance Employees involved (100 %); including SHE Training.
l
Training Hours achieved – 1,248 Hrs.
l
Training Courses attended - 31
5. Turnaround Preparation Status
29
Gulf Petrochemical Industries Co. BSC (C)
PROCUREMENT & WAREHOUSING
During
2020, GPIC received materials/equipment/ services to support the maintenance activities and reliability of plants’ operation. Approximately, 1,115 Purchase Orders for materials/services were issued in 2020. The Warehouse service levels continued to remain at more than 99% throughout the year, indicating the ready availability of materials required by the plants. It is a reflection of the close and effective coordination with suppliers and contractors, both local and foreign to expedite our requests. Whist keeping within the Company’s cost optimization Strategy for 2020 and ensuring the reliability and safety of the Plants, emphasis was given to stronger commercial negotiation with vendors. This endeavour resulted in a saving being 8% of total purchases negotiated value. Efforts were also made in consultation with the end users, to procure only essential spares. In addition, the Procurement & Warehousing team has finalized orders based on competitive offers from International Traders along with authorized local representatives for some OEM spares, which has resulted in further saving. In coordination with the Maintenance team and Engineering, the Procurement & Warehousing team has finalized procurement of all the materials, & services for Turnaround
30 Annual Report 2020
TA2021 which will commence in November 2021. All major equipment has been successfully received on site. To mitigate the effect of economic downturn and impact of the COVID-19 crisis on GPIC, the Procurement & Warehousing team renegotiated all current existing contracts for 2020 and beyond with vendors. In light of the current “COVID-19” situation, several counter measures were taken to reduce the impact on the Company’s business in line with GPIC’s Executive Management directives which included: Working From Home protocol, conducting all meetings virtually, optimizing the procurement orders, and close follow up with vendors to expedite materials from highly affected zones worldwide. During 2020, Purchasing team launched a sophisticated e-Bidding System where all bids from vendors are submitted, opened & sent for evaluation online electronically through virtual meetings by the Purchasing Committee members. The system further enhanced the confidentiality and efficiency of the tendering system. During 2020, launching of a new platform on GPIC portal was initiated for on-line application by desirous vendors for
Gulf Petrochemical Industries Co. BSC (C)
The Com Company’s cost optimization strategy for 2020 resulted in a saving of 8% of total purchase negotiated gotiated value
pre-qualification with GPIC. Implementation is at final stage and shall go live in first quarter of 2021. The new application applies Artificial Intelligence (AI) for automatic review and filtration of data submitted, enhanced security & confidentiality of suppliers’ database, speeding the process of prequalification. This application will further enhance the relationships and bring GPIC closer with its suppliers in the local and international markets. Due to the company’s commitment to environmental requirements, GPIC has been added to the “White List” System that exempts GPIC’s chemicals imports from the control of the
Supreme Council of Environment during the customs clearance processes. This listing will speed up the clearance process from the ports of the Kingdom of Bahrain. In November 2020, Eng. Entesar Falah Albinfalah, Procurement Superintendent, received a prestigious International Award “Procurement Hero Award 2020“ during the Middle East Procurement Conference which was held virtually on 25-26 November 2020 under the patronage of The Chairman of the Bahrain Tender Board. Such an award reflects the level of achievement made by the working women in GPIC and in the Kingdom of Bahrain.
31
Gulf Petrochemical Industries Co. BSC (C)
SALES AND EXPORTS
Global markets were adversely affected in 2020 as a result of the Coronavirus pandemic COVID-19, and experienced irregular and erratic growth. This was apparent in logistics as well as weak demand that led to a decline in profit margins from the beginning of the second quarter of the year. As far as the petrochemical sector is concerned, Methanol prices were greatly affected by the COVID-19 pandemic since it is the major material used as production feedstock for several manufacturing industries such as olefins, formaldehyde, acetic acid, besides being used in the manufacturing of building materials and consumer goods.
China, Far East and South East Asian Countries, which are considered major importers of Methanol, were among the first markets that were affected with the onset of the pandemic. This led to a decline in demand from those countries, which was specifically affected by the shutdown of Chinese factories that use Methanol as a feedstock for production of MTO. Adversely, abundant rainfall in India during 2020 increased the demand for Urea resulting in increased prices, through several successive tenders by the Indian government from the middle of the year until December. This was supported by the absence of the Chinese producers who were fulfilling high domestic demand for the same period.
All Products Exports by Destination 2020 Total: 1,222,835 Metric Tonnes 8%
Urea Exports by Destination 2020 Total: 704,607 Metric Tonnes
8%
13%
2%
3%
31%
9% 20%
14% 16%
6%
11%
5% 3% 5%
13% 5%
25%
Usa Sudan South Korea Taiwan Ethiopia Brazil South Africa Australia
32
Annual Report 2020
Thailand India
Usa Thailand Sudan South Africa South Korea India
3%
Brazil Australia
Ethiopia
Gulf Petrochemical Industries Co. BSC (C)
In spite of the unprecedented challenges, GPIC was able to overcome those challenges with great success, due to the commitment shown by its employees, by achieving the goals set by the Board of Directors. The company also showed positive results and fulfilled all its obligations with wisdom and insight with full consideration of all the changes the industry has witnessed in the regional and global markets. The company’s sales of Ammonia, Urea and Methanol reached a total of 1,252,463 metric tonnes, which represents an increase of 12.5 per cent more than planned for 2020. A total of 67,323 metric tonnes of Ammonia was sold, an increase of 24.5 per cent over what was planned for the year. As for Methanol a total of 446,917 metric tonnes was sold, an increase of 9.5 per cent over what was planned for the year. As far as Urea is concerned, GPIC sold 737,457 metric tonnes, an increase of 13.3 per cent over what had been planned for the same year. All of the company’s exports were shipped using 64 vessels. In addition, the local market in Bahrain was supplied with 663 metric tonnes of Methanol and 885 metric tonnes of bagged Urea. Moreover, a total of 150 metric tonnes of bagged Urea was also sent to Kuwait by road.
Methanol Exports by Destination 2020 Total: 446,922 Metric Tonnes 2%
2%
21%
6%
Ammonia Exports by Destination 2020 Total: 71,306 Metric Tonnes 7% 15%
78%
China
South Korea
India
The total exports of Urea have reached 14.3 million metric tonnes since operations began in 1998. The combined three products exports totaled approximately 35.8 million metric tonnes by the end of 2020. Despite all the challenges faced in 2020, production and export operations continued unhindered and all set goals were achieved. This indicates the reliability of the marketing plans and the flexible strategies put in place by the Board of Directors, which have been set in order to deal with any challenge presented. In addition, the efforts of the Petrochemical Industries Company of Kuwait, the marketer of Ammonia and Urea, and the Saudi Basic Industries Corporation (SABIC), the marketers of Methanol, and their unlimited cooperation, also played a major role in GPIC’s success.
1%
68%
Usa Taiwan
India Indonesia
South Korea Thailand
The Taiwanese market, which is known for its strategic importance to Methanol producers, had the largest share of the company’s exports at 24 per cent. This was followed by India at 22 per cent and Thailand with 15 per cent. Since the start of production in 1985, the company’s total exports of Ammonia have reached 6.8 million metric tonnes and Methanol exports have reached 14.7 million metric tonnes.
33
Gulf Petrochemical Industries Co. BSC (C)
HUMAN RESOURCES DEVELOPMENT
The
development, encompassing both practical and soft skills competencies through in-house, local and overseas training events.
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 undergo training courses arranged and designed by the Academy of Leadership and Learning as a part of their continuous training and
In addition to the awards in training and development GPIC has received in previous years, the Company has been awarded Outstanding Institution in Training and Human Resource Development several times from the Ministry of Labour. This achievement comes in recognition of the Company’s role in the development of Bahraini capital, through the provision of multiple opportunities for staff to participate in specialised courses internally and outside the Company. The Academy of Leadership and Learning also supports and encourages
Training and Development: training and development of Bahraini employees is a major priority for GPIC’s management and 2020 marks 41 years of this commitment as the Academy of Leadership and Learning, previously the Training Centre, celebrated its 35th anniversary.
Number of Trainees - Annual 100 90 88
80 70
74
71
60
64
50
65
63
54 49
40
47
49
48 43
40
43 39
30
33
20
32
10
16
17
2017
2018
0 2002
34
2003 2004 2005
Annual Report 2020
2006 2007 2008 2009
2010
2011
2012
2013
2014
2015
2016
2019
2020
Gulf Petrochemical Industries Co. BSC (C)
Number of e-Learning Users 500 450 444
441
400 398
350 323
300 284
250
299
217
200
200 173
150
150
100 97
81
2009
2010
50 34
0 2008
2011
2012
2013
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 utilises CompetencyBased Training (CBT) in its approach to the training and development of staff. This methodology is considered 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
2014
2015
2016
2017
2018
2019
2020
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 56 employees so they are fully qualified to be promoted into 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. Due to the COVID-19 pandemic, the Academy utilized online
35
Gulf Petrochemical Industries Co. BSC (C)
and virtual training. There were many online courses offered during the pandemic at which employees attended as an alternative to the physical classroom training. This process involved the organisation of 134 virtual training attended by 415 employees, 51 training courses held in the Academy and GPIC Club, attended by a total of 238 employees. This is in addition to 13 training courses and conferences held in Bahrain with 55 employees in attendance and a total of 18 training courses outside Bahrain attended by 72 employees. These courses represented a total of 216 courses attended by 780 employees and trainees. GPIC has also adopted a Company-wide mentoring programme to provide guidance from all managers and superintendents to junior staff members. A total of 42 employees benefitted from this mentoring process. 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. In 2020, GPIC trained 43 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 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. During the COVID-19, students did their training online and interacted with the employees through virtual meetings. 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, selfdevelopment skills, computer applications, leadership skills and project management skills. There are 18 technical programmes on offer for the upgrading of technical skills and knowledge for workers in the technical teams such as the Maintenance team, Plants Operation team 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. The eLearning facility was active during the pandemic and 2593 courses were attended during 2020. GPIC also provides the electronic library through the Company’s intranet. The new 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, numerous magazines, journals, periodicals and valuable publications.
Total Training Events 400 371
350 338
335
320
300 296
288
250
308 288
251 210
200
199 177
172
2011
2012
150 100 50 0 2008
36
2009
Annual Report 2020
2010
2013
2014
2015
2016
2017
2018
2019
2020