This is an important milestone for the project as it completes the full scope and definition for the development of this world-scale facility.
His Excellency Dr Mohammed bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and Chairman & Managing Director of QP, said:
“The Al-Karaana Petrochemicals Complex project has been envisioned to further boost Qatar’s rapidly growing stature in the global petrochemicals industry.
I am very pleased to see the project taking a significant step forward.”
Graham van’t Hoff, Executive Vice President for Shell Chemicals, said:
“The proposed Al-Karaana Petrochemicals Complex project underlines Shell’s growth aspirations in the Middle East, and our contribution towards supporting Qatar’s strategy to diversify its energy industry and produce cost-competitive products.
I am delighted with the achievement of yet another significant milestone in the project’s development.”
Wael Sawan, Managing Director and Chairman of Qatar Shell, said: “The positive development of the Al-Karaana project clearly indicates the depth of our partnership with the State of Qatar. We are confident the project will help to support the country’s energy diversification strategy.”
The chairman of the project’s Executive Committee, Mohammed Nasser Al-Hajri, who is also QP’s Downstream Ventures Director, said: “QP and Shell worked closely together to reach this important project milestone.
The focus of the project team is on the delivery of a quality FEED that will be a major step towards successfully delivering this project which is an important part of our overall petrochemical development plan. We are delighted to have awarded the integrated FEED contract to Fluor, a world-class engineering company with a proven track record and expect Fluor to deliver FEED work of the highest quality and standards in industry.”
The scope under consideration for the Al-Karaana Petrochemical Complex project includes the following:
A world-scale steam cracker, with feedstock coming from natural gas projects in Qatar; a 1.5 million tons per annum mono-ethylene glycol plant using Shell’s proprietary OMEGA (Only MEG Advantaged) technology; a 300 thousand tons per annum linear alpha olefin unit using the proprietary Shell Higher Olefins Process; and a 250 thousand tons per annum OXO alcohols unit.
In addition to announcing the awarding of the FEED contract, His Excellency the Minister also unveiled the official logo of the Al-Karaana Petrochemicals Complex project, giving it a unique identity. The logo consists of two alphabetical letters - “k” and “kaf” - which are written in both Arabic and English and combined together to form a drop. This drop not only represents the geographic name “Al-Karaana”, which refers to a water well, but also the liquid products that the petrochemicals complex will eventually produce.
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Definitions & cautionary note:
Resources: Our use of the term “resources” in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the United States ("SEC") proved oil and gas reserves or SEC proven mining reserves.
Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them.
These expressions are also used where no useful purpose is served by identifying the particular company or companies. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence.
The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments".
The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group.
All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.
Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.
Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions.
These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases.
There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation):
(a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations;
(d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks;
(h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions;
(j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions;
(l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs;
and (m) changes in trading conditions. All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.
Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2011 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement, 28th of February 2013.
Neither Shell nor any of its subsidiaries nor the Shell Group undertake any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.
Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC.
U.S. investors are urged to consider closely the disclosure in Shell's Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.