Dr Shaikh Mohammed bin Khalifa Al Khalifa receives the 'Highly Commends' Award from RoSPA
OGN: What have been the most significant achievements at Banagas in the past one year?
(A) Sales and operating profits incomes
Despite prices falling in the middle of last year, sales and operating profits reached a very good level, 23 per cent above budget. However, this was just under $8 million lower than the record high of the year 2000.
This relatively weak market is expected to continue and we saw it during January and February as a lack of demand and economic uncertainty drives prices lower.
The forecast is, however, optimistic and we hope to see prices moving up from the second quarter of 2002.
(B) PRODUCTION
LPG and naphtha production was 4.5 per cent higher than forecast last year.
Propane and butane products were mainly exported to Japan and India, with some quantities exported to the Philippines, La Reunion, Pakistan and Indonesia.
Naphtha product was exported mainly to Japan. For this year, all of our naphtha product will be exported to Indonesia as a feedstock for the petrochemicals industry.
(C) SAFETY RECORD
The Company maintained its high standards in the field of Occupational Health and Safety. Last August, the Company achieved two million man-hours without a lost-time accident.
In recognition of the Company's outstanding safety record, it was awarded two international awards:
The Company also won the Annual Fire Drill Competition held between the major industries in Bahrain.
Last year, an intensive training programme on fire fighting, safety and First Aid was also carried out. A total of 3,106 hours was spent on training 302 employees and 1,174 hours was spent on training 149 contractor personnel in addition to 650 hours spent on training 80 summer trainers.
These outstanding achievements came as a result of the total compliance with the safety rules and practices by all employees and their awareness and appreciation of occupational responsibility.
(D) QUALITY ASSURANCE
Since the Company was registered with the British Standards Institute (BSI) in 1994, Banagas has received no complaints from its customers. The Company is assessed by BSI twice a year and top management also meets and reviews quality requirements throughout the Company activities twice a year to ensure that the Quality Assurance is in place.
We are now working to implement the new Quality Standard ISO9000:2000 transition process, which we hope to complete by the end of this year.
(E) HUMAN RESOURCES
A new employee performance management system was introduced to improve employee performance and core competencies at all levels.
Our target for employee training and development last year was 20,000 hours. However, we successfully completed 24,752 hours by the end of December. This involved arranging 111 different courses, in-house, local and overseas attended by 1,112 participants.
OGN: Will Banagas process any Qatari gas under the recent supply agreement signed between the two countries? If so, do you foresee any plant capacity expansion at Banagas?
As you are aware, Bahraini and Qatari authorities signed a memorandum of understanding (MoU) under which Qatar will supply natural gas to Bahrain as part of a plan to build a regional gas pipeline grid.
The supply of 500 million cu ft rising to 800 million cu ft of Qatari gas by late 2005 or early 2006 represents a major step forward towards further projects and economic development for both countries.
An oil and gas committee, representing the Kingdom of Bahrain, was formed by His Excellency the Minister of Oil, Shaikh Isa bin Ali Al Khalifa. Banagas chairman Shaikh Hamad bin Ebrahim Al Khalifa was assigned to be responsible for gas projects and chair the gas committee with members representing the Ministry of Oil, Bapco and Banagas.
This gas committee will serve as a coordination body for this purpose and to make recommendations to the higher Bahraini authority.
It is still too early to judge which sectors will benefit, or consume more gas, although 33 per cent of demand is used for power generation and 18 per cent is used by the energy sector.
OGN: How successful have the Company's productivity improvement programmes been?
Last year the productivity of the Company reached a high level.
Our productivity improvement programme is focused on three aspects:
OGN: What steps does Banagas take to ensure that its operations have minimal impact on the environment?
Our mission is clear with regard to the environment.
We accept responsibility for the protection of the environment in all aspects of our operations.
We have great concern with environmental issues and a committee was formed last year to develop and implement an Environmental Management System (EMS) in accordance with the ISO14001 EMS guidelines.
In fact, committee members are monitoring environmental issues which might have an impact on our operations and come up with recommendations for the elimination of such pollutants.
OGN: Banagas recently established a 50:50 joint venture with Dynegy. How will this partnership benefit Banagas?
The Supreme Oil Council has given the go-ahead for Banagas to form a joint venture with Dynegy Global Liquids of the US, in which each will own 50 per cent.
The joint venture company has been registered by the name Danagaz, with its headquarters in Bahrain.
Danagaz will pursue natural gas liquids-related opportunities throughout the Middle East and North Africa, and the company will invest in gas processing, extraction, conditioning, storage, transportation and terminal facilities for the manufacture and delivery of natural gas liquids worldwide.
This joint venture is a necessary step for Banagas to grow its business and become global.
In addition, it will be an excellent job opportunity for skilled Bahraini nationals for the future.
