* These represent various investments mainly in the Qatar Exchange and the effective QP interest is less than 5%.

Qatar Petroleum (QP), formerly Qatar General Petroleum Corporation, is a state-owned corporation established by Emiri Decree No 10 in 1974. It is responsible for all phases of the oil and gas industry in Qatar, directly and through its joint ventures and subsidiaries. The principal activities of Qatar Petroleum and its subsidiaries and joint ventures are the exploration, production and sale of crude oil, natural gas and gas liquids and refined products, liquefied natural gas (LNG), production and sale of petrochemicals, fuel additives, fertilizers, steel, aluminum, chartering of helicopters, underwriting insurance and other services.

QP’s strategy of conducting hydrocarbon exploration and development are through Exploration and Production Sharing Agreements (EPSA) and Development and Production Sharing Agreements (DPSA) concluded with major international oil and gas companies.

The operations and activities of Qatar Petroleum are conducted at various onshore locations, including Doha, Dukhan and the Mesaieed and Ras Laffan Industrial Cities, as well as offshore areas, including Halul Island, offshore production stations, drilling platforms and the North Gas Field.

In addition to these operations, QP carries out its activities through the following subsidiaries, joint ventures and other investments:

Committed to Excellence

A – Subsidiaries

Qatar Petroleum Qatar Gas (3) Limited 100.0Qatar Petroleum Gas Trading (QGII) Limited 100.0Qatar Petroleum LNG Services (QGII) Limited 100.0Qatar Terminal Company Limited 100.0Industries Qatar Q.S.C. 70.0Qatar Nitrogen Company Q.S.C. 50.0Qatar Holding Intermediate Industries Company Limited 100.0Qatar Petroleum International Limited 100.0Amwaj Catering Services Company Limited 100.0Al Shaheen Energy Services Company Limited 100.0Qatar Petroleum Qatar Gas (4) Company Limited 100.0Gulf International Services Q.S.C. 30.0

B – Joint Ventures

Qatar Liquefied Gas Company Ltd Q.S.C. 65.0Qatargas Upstream Joint Venture (unincorporated) 65.0Ras Laffan Liquefied Natural Gas Company Ltd 63.0RasGas Company Ltd 70.0Ras Laffan Liquefied Natural Gas Company Ltd (II) 69.5Qatar Chemical Company Ltd Q.S.C. 51.0Qatar Vinyl Company Ltd Q.S.C. 73.0Qatex Limited 51.0Oryx GTL Ltd 51.0Qatar Liquefied Gas Company Limited (II) (Q.S.C.) 67.5SEEF Limited 80.0Ras Laffan Liquefied Natural Gas Company Limited (3) 70.0Qatar Chemical Company II Limited 51.0Qatargas Operating Company Limited 70.0Qatofin Company Limited (Q.S.C.) 36.6Ras Laffan Olefins Company Limited (Q.S.C.) 44.5Gasal Q.S.C. 30.5Laffan Refinery Company Limited 51.0Qatar Aluminium Company Limited 50.0Qatar Engineering Consultancy Company Limited 50.0

QP Effective Interest %

QP Effective Interest %

C - Joint Ventures and Subsidiaries of QP Subsidiaries

Qatar Petrochemical Company Ltd (QAPCO) 56.0Qatar Fertiliser Company S.A.Q. Ltd (QAFCO) 52.5Qatar Fuel Additives Company Ltd Q.S.C. (QAFAC) 35.0Qatar Steel Company Ltd Q.S.C. (Qatar Steel) 70.0South Hook Gas Company Limited 70.0South Hook LNG Terminal Company Limited 67.5Qatar Liquefied Gas Company Limited (3) 68.5Adriatic LNG Terminal Limited 45.0Qatar Liquefied Gas Company Limited (4) 70.0QTL U.S. Holding Corporation, Inc 100.0Gulf Helicopters Q.S.C. (GHC) 30.0Al Koot Insurance and Reinsurance Company S.A.Q. (Alkoot) 30.0Gulf Drilling International Limited Q.S.C.(GDI) 21.0QTL Hungary Financing Limited 100.0Al Shaheen Well Services 50.0Fareej Real Estate Company Q.S.C (Fareej) 34.0QPI & Shell Petrochemicals (Singapore) PTE Ltd (QSPS) 49.0

D – Other Investments

Qatar Fuel Company (WOQOD) 40.0Qatar Shipping Company (Q-SHIP) 21.5Qatar Metal Coating Company W.L.L. 35.0Qatar Plastic Production Company (QPPC) 18.7Qatar Electricity and Water Company (QEWC) 11.5Ras Laffan Power Company Limited (RLPC) 10.0Qatar Gas Transportation Company Limited “NAKILAT” 5.1Arab Shipbuilding and Repair Yard Company (ASRY-Bahrain) 18.8Arab Maritime Petroleum Transport Company (AMPTC-Kuwait) 14.8Arab Petroleum Investment Corp (APICORP-Saudi Arabia) 10.0Arab Petroleum Services Company (APSC-Libya) 10.0Arab Petroleum Pipelines Company (SUMED-Egypt) 5.0Nakilat Agency Company Limited 5.0United Stainless Steel Company (Bahrain) 17.5United Helicharters Private Limited (India) 10.8Mesaieed Power Company 20.0Sphere Investments Limited (Australia) 6.2Gulf Industrial Investment Company (Bahrain) 17.5Gulf United Steel Company (Bahrain) 17.5Taoudenni Blocks Mauritania 20.0Ras Giritas Power Company 15.0Others *

In the name of GODthe most GRACIOUSthe most MERCIFUL

6

Message from the Chairman 8Highlights 10Key Consolidated 11Financial InformationAdministration 12 Human Resources Services Qatarization Corporate Training Services Medical Services General Services

Corporate HSE 14Information Technology 16Technical Directorate 18Crude Oil & Natural Gas 20 Dukhan Operations Offshore Operations North Field Alpha Al-Khaleej Gas Project (AKG) Barzan Gas Project EPSA/DPSA Drilling Department Halul IslandLNG 26 Qatargas RasGas

CONTENTS

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Pipelines 28 Dolphin Project

NGL/Gas Utilization/Local Gas 29Refining 31 QPRefinery LaffanRefinery OryxGTL Pearl GTL

PetrochemicalIndustries 33 QatarFertiliserCompany(QAFCO) QatarPetrochemicalCompanyLtd(QAPCO) QatarFuelAdditivesCompany(QAFAC) QatarVinylCompany(QVC) QatarChemicalCompany(Q-Chem) QatarChemicalCompanyIILtd(Q-ChemII) Ras Laffan Ethane Cracker Qatofin Melamine Seef Limited

IndustrialCities 39 MesaieedIndustrialCity RasLaffanIndustrialCity

Other Industries andSupportingServices 43 GulfHelicoptersCompany QatarSteelCompany(QSC) QatarPlasticProductsCompany(QPPC) Qatar Aluminium (Qatalum) Qatar Petroleum International (QPI) Gulf Drilling International (GDI)

Financial Statements 49

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CHAIRMANMESSAGE FROM THE

Theyear2009marksthe60thanniversaryoffirstoilshipment fromMesaieedport inDecember 1949. Since that time the oil and gas industry in Qatar has developeddramatically, and achievedmany great success in commercializing our hydrocarbonresources. In 2009Qatar continued to strengthen its position as one of the leadingproducersofhydrocarbonsintheregion.

Theglobaleconomy,however, in2009canbecharacterizedbytwowords; instabilityanduncertainty.Likemanyoilandgasproducingcountries,Qatarwasinthemidstofimplementingcapacityexpansionprojectstomeetthegrowingworlddemandforsourcesofenergywhenthecrisesstrucktheworldeconomy.

Amongtheseprojectsweremega-LNGtrains,downstreamgasfeedplants,andmajorinfrastructureprojects.Constructionandengineeringcontractswereattheirhighestcostsever.Aswerepricesforrawmaterials,equipment,andlabor.

ManyscepticswereanticipatingthatQPwouldcanceloratleastdelaysomeofitsmajorprojects,butthankstoourwiseandcourageousleadership,QPhasproventoberesilientinhandlingtheeffectsoftherecessionontheenergyindustryinQatar.Icanproudlysaythatdespitethesedifficulties,ourinvestmentplansremainedlargelyunchangedandaregoingaccordingtothescheduleofcompletion.Onlyasmallnumberofmajorprojectsweredeferred.

Qatar’s essential role in the global gas supply has beenmarked by achievingmanymilestonesin2009.AmongthesearetheinaugurationofQatargas’Trains4and5,aswellasRasgas’train6.TheyarethelargestLNGliquefactiontrainsintheworld,eachwithnameplatecapacityof7.8milliontonsofLNGperannum.TheyrepresentanewsourceofenergydiversityandsupplyforLNGmarketsaroundtheworld.

InarelatedstrategicdevelopmentforQatar’sLNGbusiness,twoLNGreceivingterminalshavebeencommissionedinkeycustomermarkets.QPconsidersthesetobeanintegralpartoftheState’scommitmenttosecurethesupplyofLNGtogasmarketsaroundtheworldinasustainablemanner.ThefirstwasSouthHookLNGreceivingterminalinMilfordHavenUK,thelargestofitskindinEurope,capableofmeetingupto20%oftheUK’scurrentgasrequirements.ThesecondwastheAdriaticterminalinNorthernItaly.

Thesuccessfulcompletionoftheseprojectsrepresentsasignificanttechnicalandeconomicachievementbetween thestakeholders,aswellasstrengthening thecompetitivenesspositionofthegasmarketintheterminalhostcountry.

TheroleofQatarinthegasbusinesswasreinforcedwhenDohabecametheheadquartersfortheSecretariatoftheGasExportingCountriesForum.SelectingDohaasthepermanentsecretariatfortheGECFreflectsthelevelofconfidencethatallmembercountrieshaveinQatar.

The progress in the LNG business has coincided with another equally importantdevelopmentinthediversifiedgasindustrystrategy.TheconstructionofphaseoneofPearlGTLisdueforcompletionbytheendof2010.Thiswillbetheworld’slargestGas-to-Liquidsplant,whichwillproduce140thousandbarrelsadayofpetroleumproducts.

Amajormilestoneinourpetrochemicalindustrywascrossedin2009withtheinaugurationof the Ras LaffanOlefins Company (RLOC) plant, one of theworld’s largest ethanecrackingplants.Buildinguponthissuccess,Qatarissettobecomeamajorexporteroflinearlow-densitypolyethylene(LLDPE)withtheinaugurationoftheworldscaleLLDPEQatofinfacilityatMesaieed.

Althoughtherearemanysignsindicatingthatworldeconomicrecessionhasbottomedout in2009,Ithinktheroadtofullglobaleconomicrecoveryisstillbumpywithmanybarrierstoovercome.

Thisfragilerecoveryoftheworldeconomyneedstobeprotectedandstrengthenedtoavertaslowdownineconomicactivitiesuntilwereachasustainablelevelofrecovery.

In spite of the instability and uncertainty that surrounds the energymarket I remainconfidentthatthefuturewillbringfurtherprosperitytotheenergyindustryinQatarandaroundtheworld.

AbdullahBinHamadAl-AttiyahQatar Petroleum Chairman & Managing Director

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10

2009 HIGHLIGHTS

11Jan-H.E.AbdullahBinHamadAl-Attiyah,DeputyPremierandMinisterofEnergyandIndustryopened1stInter-nationalGasProcessingSymposium,organizedbytheGasProcessingCenteratQatarUniversity.25Jan-H.E.AbdullahBinHamadAl-Attiyah,DeputyPremierandMinisterofEnergyandIndustrysignedanagreementonbehalfoftheStateofQatartobecomethefirstGulfcountrytojointheWorldBank’sGlobalGasFlaringReductionpartnership(GGFR)toreducetheflaringofgasassociatedtooilproduction.

7Dec-The4thInternationalPetroleumTechnologyConferencewasheldundertheauspicesofH.H.SheikhHa-madbinKhalifaAl-Thani,EmiroftheStateofQatar.9Dec-The9thMinisterialMeetingoftheGasExportingCountriesForum(GECF)washeldundertheauspicesofH.H.SheikhHamadbinKhalifaAl-Thani,EmiroftheStateofQatar

9Nov-TheFourthLiquefiedPetroleumGas(LPG)TradeSummitConferencewasheldunderauspicesofH.E.AbdullahbinHamadAl-Attiyah,DeputyPrimeMinisterandMinisterofEnergyandIndustry,andwasinauguratedonhisbehalfbyH.E.MinisterofStateforEnergyandIndustryAffairs,Dr.MohammedbinSalehAl-Sada

9Mar-UnderthePatronageofH.H.SheikhHamadBinKhalifaAl-Thani,EmiroftheStateofQatar,the7ThDohaNaturalGasConference&Exhibitiontookplace,organizedbyQatarPetroleum.26Mar-H.E.AbdullahBinHamadalAttiyah,DeputyPremier,MinisterofEnergyandIndustry,andChairmanofQatarGasTransportCompany“Nakilat”,signedaMemorandumofUnderstandingwithDamenShipyardsGroup,oftheNetherlands,toformaJointVenturetomanageanewstate-ofthe-artShipyardinthePortofRasLaffan.

4May-HisHighnessSheikhTamimBinHamadAl-Thani,theHeirApparent,laidthefoundationstoneforRasGirtasPower&WaterProject.12May-H.H.TheEmir,SheikhHamadbinKhalifaal-Thani,openedEurope’sbiggestliquefiednatural-gasimportterminal inSouthHook,Wales,togetherwithQueenElizabethII.

6Apr-HisHighness,SheikhHamadbinKhalifaAlThani,TheEmir,inauguratedtheQatargas2ProjectinthepresenceofHisRoyalHighnessTheDukeofYork,PrinceAndrew

29Jun-H.E.AbdullahbinHamadAl-Attiyah,DeputyPremierandMinisterofEnergyandIndustry,signedwithPGNiG,thePolishoilandgasstateownedcompany,aSalesandPurchaseAgreement(“SPA”)forLNGsupplyfromQatartoPoland.30Jun-Qatarhostedthe8thMinisterialMeetingoftheGasExportingCountries’Forum(GEFC).

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KEY CONSOLIDATED

FINANCIAL INFORMATION

YearEnded31December2009

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ADMINISTRATIONAdministrationDirectoratecontinuedtoprovidehigh-qualitycustomerservicetosupportQPcorebusinessinthefivekeyresultareasofHumanResources,Qatarization,CorporateTraining,MedicalServices,andGeneralServices.Duringtheyearmorefocuswaslaidonstrengtheningofcontrols,con-tinuous followup/reviewofbusinessplansand improvingcommunicationtoenhanceeffectivenessofbusiness.

HUMAN RESOURCES SERvICESThePerformanceManagementSystemwasenhancedwiththeintroductionofEmployeeSelf-AssessmentandholdingofcalibrationsessionsafterSupervisors’Assessmentswereconcluded.TheautomationoftheMeritReviewprocessresultedinshorteningofprocessingtime.QPrecruited734expatriates and 92 Qataris. Also 405 Qatari high-schoolgraduateswererecruitedfordifferentvocationaltraininganduniversityscholarshipprograms.Areplacementplantoen-surethatQPcontinuestooperateeffectivelywhenindividu-alsinpositionsretirewasdeveloped.

The2009customersatisfactionsurveyresultsindicatehigh-ercustomersatisfactionratingintheareaswhereHRhasimplementedautomatedsystemsandstreamlineditspro-cesses.HumanResourcesDepartmentwasalsosuccessfulin sharing information in the form of guidance and support asanintegralelementtofosterimprovementviae-feedback.Anumberofnewimprovementinitiativeswereidentifiedandchanges to improve customer involvement and satisfaction arebeingimplementedonanongoingbasis.

QATARIzATIONAttheendof2009Qatarisinpermanentpositionsaccount-edfor2,060ofQPworkforce,or19%oftheestablishment.If Qataris on training and development are included, theheadcountis3,792foraQatarizationpercentageof35%.

Atotalof261Qatariswereconfirmedintopermanentposi-tionsin2009.QPsponsorsover1,700Qatarisindifferentprograms such as Staff on Academic Studies, UniversityProgram,TPP,CPP,TMP,FPPandSPP.In2009,179Qa-tariscompletedtheir training/educationprogramandfilleddevelopmentpositions.

CORPORATE TRAINING SERvICESCorporate Training (CT) Department continued to play itscrucialroleinimplementingtheenergyandindustrysector’sStrategic Qatarization Plan through meeting the trainingrequirementsintermsofrecruitingQataritrainees,identify-ing,designingandprovidingqualitytrainingprograms.CTiscurrentlyoperatingtheTechnicalIndependentSchooltoensurethesupplyofappropriatelytrainedNationalsintothevariousdisciplinesrequiredbytheoilandgasindustry.

In2009,thenumberofQataritrainees,whowentthroughCorporate Training long term training programs reached 2,203,outofwhich876werestudents in localandover-seasuniversities.TherestpursuedtrainingprogramswithinCorporateTrainingandCNAQ.

Alsoin2009,professionaltrainingcoursesinbusinessandITskillsbenefited9,220employeesfromQPanditsaffiliates.Inaddition,e-Learningasamodeofdeliverysupplementedtraditionalclassroomandon-the-jobtraining.

13

MEDICAL SERvICESMedical Services (MS) Department continued to provide pri-marycaremedicalservicesforapopulationofapproximate-ly200,000patientsfromhealthcareclinicslocatedatDoha,Dukhan,Mesaieed,RasLaffan,andonHalulIsland.Inad-dition, theEmergencyMedicalServices (EMS) respondedtoatotalof2,600onshorecalls(emergencyresponseandpatienttransfers)andrespondedto34offshoremedevacs.

In2009,MSachievedlicensingofallmedicalpersonnelandmedical facilities through the Supreme Council of Health and implementedstandardizedSingleMaleWorkerservicede-liveryacrossalllocationsthroughformalizedmedicalserviceagreements.MSintroducedNurseLeadSpecialistchronicdiseasemanagementinallprimaryhealthcareclinics(diabe-tes,hypertension,andasthma)andtookuptheleadershiprole in H1N1 pandemic containment across the oil and gas sector.Inadditiontothemainprimarycarefacilities,MSnowoperateseightfullyfunctionalandlicensedfront-lineclinicstopromotewellnesswithin,andbeyond,theworkplace.

GENERAL SERvICESGeneral Services (GS) Department continued to provide sup-portservicesforQP,itsaffiliatesandnewlyestablishedcom-panies.ForQP,itcontinuedtoprovideefficientandeffectiveserviceintheareasofhousing,facilities,maintenance,andtransporttosupportoperationsinDoha.Toensurequalityservice,GSintroducedtheElectronicCorporateNon-Tech-nicalRecordCentreSystem(e-CNRC) inalldepartments,andupdatedofficespacerequirements.

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CORPORATE HSECorporateHealth,Safety&Environment(HSE)encompass-es Corporate Environment & Sustainable Development,CorporateHSESupport,CorporateQuality&ManagementSystems,OilSpill&EmergencyResponse,CorporateHSEStrategy,andDohaSafety.

CorporateHSEcontinuedtosetQP’sHSEpolicyandman-agementsystemsaswellastoensurethetechnicalinteg-rityandHSEcomplianceofallfacilitiesatQatarPetroleumstartingfromthedesignphasefollowedbyconstructionandthenoperation.CorporateHSEprovided technical adviceonHSEmatters toQP operations, regions, projects andengineeringdirectorates aswell as to external projects inordertoachievesustainableoutcomesinmeetingwith itsHSEobligations.

FollowingarethemainachievementsbyCorporateHSEdepartmentsduring2009:

Corporate Environment & Sustainable Development❏Providedsupportandadviceto106engineeringprojects❏Successfullycompletedthefirstnationalcommunication

(INC)reportundertheUNFrameworkConventiononCli-mate Change (UNFCC)

❏ As part of its major endeavor to reduce emissions from gasflaring,QPhasreducedgasflaring from itsopera-tionsincomparisonto2008baseyear

❏QPairqualitymodelingplatformforozoneformationanddestruction in the lower atmosphere was successfullyrendered operational

Corporate HSE Support❏ Provided major technical support to the petrol station

projectwithrespecttosafetyindesignandoperation❏Engagedwiththetaskforceforthepandemicprepared-

nessfromthestartoftheoutbreakof(H1N1).Fitnesstoworkstandardwasfinalized.Handingover thedeliveryof some HSE courses to the operational areas in line withtheHSEcorporate,regionalandoperationalgeneralmandate

❏ThedevelopmentofthenewQPHSEregulationforcon-tractors approved by H.E the MD for implementation.Onecontractorregulationworkshopwasheld

❏ Corporate HSE Incentive scheme was reviewed andfinalizedforfullimplantationin2010

❏ Facilitated the approval from MOE to utilize the NORM storageyardatHalulIsland.

❏ThefollowingcorporateQPstandardsandregulationsareissued:

-CorporateLiftingEquipmentRegulationRev.4 -CorporateStandardforWeldingofOnshore TransmissionPipeline,QP-STD-R-006 -CorporateStandardforQualityRequirements forProjects,QP-STD-Q-004

Corporate Quality & Management Systems❏Business Performance Management System (BPM)

arrangedfiveworkshopsforQP’sstaff❏200QPstaffweretrainedinconductingriskassessment❏SupportedSecurityDirectoratetoestablishtheCorporate

SecurityManagementSystem❏ Development of seven corporate standards and

regulations❏ As representative of Qatar Petroleum in Gulf standards

committeeforoilandgasindustries,jointandarrangedits events

❏ Participated in the preparation of Gulf oil and gas standards2009plan

❏Managed the review of eleven international standardsandcodes(ISOTC67,193and176)whichhavelargeimpact on Qatar petroleum activities

❏EstablishedstandardizationworkinggroupswithinQatarPetroleum

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Oil Spill & Emergency Response❏Completed the design and installation of a 320-meter

protectionboomforAl-Sharqhotel❏Managed Al-Furusia petrol station hydrocarbon

contamination assessment❏Respondedtothe46reportedoilspillsandconducted

clean up operations❏Developedsecondeditionoftheoilspillsensitivityatlas

and40newoilspill responsetacticsheetstoensurearapid planned response to environmentally sensitiveareasaswellashighriskareas

❏Concluded three oil spill drilling support packages❏Acquiredessentialequipmentforoffshoreoilspillresponse

and upgraded oil spill response base at Mesaieed port and Offshore Halul in addition to the main response centre at Ras Laffan

❏Conducted eleven exercises and drills throughout QPoperational areas

❏Deployeda400-meterpermanentboomatRasLaffanporttoprotectthewaterintakes.

❏Upgradedsoftwareforoilspillmodelingsystemtopredictbehavior of oil spills

❏The establishment of a strong team of oil spill responders fortheStateofQatartrainedtointernationallyrecognizedIMO(InternationalMaritimeOrganization)levels1,2&3.

❏Represented the State of Qatar in the international and regional organizations (IOPC, RECSO, MEMAC andROPME).

Corporate HSE Strategy❏Organized QP road safety campaign during GCC 26

Traffic Week and conducted presentations to QatarPetroleum staff and trainees

❏Produced special HSE awareness video for QatarPetroleumRefinery

❏Produced special induction video for Ras Laffan EmergencyandSafetyTrainingCollege

❏ParticipatedintheYouthCommunicationCamporganizedbythetrafficdepartment

❏Activelyparticipatedinthe5thAnnualHSEForuminOil,GasandPetrochemicalsForumbyapresentation

❏OrganizednineSafeDrivingAwarenesspresentationstoQPRefineryandEngineeringdepartment

❏RepresentedQPinQatarCivilDefenseExhibition

Doha Safety❏Supported10projectsbyDohaOnshore❏CompletedHSEinspectionof36Dohalocations❏ Investigated30accidentstopreventreoccurrence❏Conductannualfire/musterdrillsateachQPbuildingin

Doha area

16

IINFORMATION ANDCOMMUNICATION TECHNOLOGY (ICT)

ICTcontinuestoplayastrategicandvitalroleinQP’sopera-tionsbyproviding timely informationandcommunicationsservices.Scalabletechnologiesoffermaximumflexibility inmeetinguserrequirements,withfit-forpurposesolutionsuti-lizingleadingedgefacilities.

SafetyandsecurityofQP’sdataisensuredbyutilizingthelatestdatasecuritydevicesandapplications,andresilienceon thedata-network isprovidedby the latest high-band-widthfiber-backbonetechnology.

TheICTactivitiescanbecategorizedintotwobroadareas:businessprojects,andtechnologyinitiatives.

Business ProjectsICTcontinuedtodeliverserviceexcellencetoQP’sbusinessandoperationalactivitiesthroughout2009.Multipleprojectsof diverse nature and size are in various stages of implemen-tationorcompletion.

TheQPenterprise resourceplanningsystem (SAP)hasamajorroleinmanagingdataanddata-flowinmostareasoftheorganization.During2009variousprojectswereinitiatedtointerfacewiththeSAPplatform.Afewexamplesare:

✦ Chemical Usage Application–AsystemtohelptheQP refinery inMesaieed to plan, procure andmonitorplantwiseconsumptionofchemicalsusedintherefinery

✦ Transport Equipment Requisition (TER) System – A systemthatautomatestheprocesstorequesttransportorequipmentforQPemployees

✦ EndofServiceNotifications–OnlinenotificationsaresenttoICTtoimmediatelyrevokesystemaccesswhenemployeesleaveQP.Thishasgreatlyenhancedthese-curitycontrolsofQPITsystems

Manyotherbusiness-relatedprojectswerecompletedorinitiatedin2009,including:

✦ e-Ras Laffan Initiative – A program to provide a central pointofinformationandaccesstointernalQPusers,ex-ternalbusinesspartnerssuchasRasGasandQatargas,andthegeneralpublic.Thisinitiativeprovidessignificantimprovementtoautomationofworkflowsandeliminationofpaperwork,allowingQP’spartnersandcustomerstorequestservicesdirectlyviatheportal

✦ Port Management Information Systems–Asystemto provide sophisticated data management and com-munication for management of the Halul and Mesaieed ports.ThissystemwillprovideshippingagentswithIn-ternetaccesstoconductthemajorityoftheirbusiness,replacingtraditionalfaxesandemails

✦ Offshore Production Data Transmission to an On-shore Facility – Allowing planning engineers fromOilDevelopmentandProductiondepartments to remotelymonitorandanalyzeproductiondatafromoffshorewells

✦ Pipeline Integrity Management–AsystemusedbytheEngineeringdepartment,basedonGIS(Geographi-calInformationSystems),forthepurposeofhavinganin-tegratedviewoftheintegrityoftheQPpipelinenetwork

✦ Process Information Management System – A system that allows plant operations and maintenancepersonnel toaccessprocessdataremotely inorder toautomatethepreparationofproductionreports,performanalysisoftheplant’soperatingconditionsandefficien-cies,andtoremotelymonitortheplantprocesses

17

Technology InitiativesICTconstantlyresearcheswaystoenhancetheapplicationcapabilities of systems and information technologyinfrastructurebyutilizingnewtechnologydevelopments.

Someofthetechnologyinitiativescompletedin2009were:✦ Expansion of Server Systems – To accommodate a

varietyof newprojects includinge-RasLaffanand thenewSAPportal,servershavebeenexpandedtocopewiththeextraload

✦ Blackberry Enterprise Services – Smart Phone accessforQPDirectors,Managersandotherseniorstafftotheircorporateemailfromanywhereintheworld

✦ Helpdesk Automated Services System – A comprehensiveautomatedsystembasedoninternationalbestpractices,formanaginguserreportedrequests

✦ Network Infrastructure Services – Departments and DirectoratesinQPareexpandingastheorganizationbecomes a major international player in the energyindustry.

Withthisgrowthcomestheneedforinfrastructure,andICThas provided network infrastructure with high availability,reliability and scalability to meet targetedmilestones andfuturebusinessrequirementsofQPdepartments.

These initiatives have allowed ICT to keep QP at theforefrontoftechnologythroughwellresearchedandprovendeploymentofleadingedgeinfrastructureandservices.

ICTmovesinto2010withasolidbaseoftechnology,lookingforwardtodeliverworld-classinformationandcommunicationtechnologyandservicestotheorganization.

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TECHNICALDIRECTORATE

The Technical Directorate has been at the forefront of project activitiesinQatar,managingandimplementingcapitalprojectsforQPcorebusiness,major infrastructureprojects for jointventuredevelopments,andstateinfrastructureprojects.TheTechnical Directorate continued to pursue its mission to provide innovative solutions that consistently surpasses customerexpectations,withdueregardtosafety,environment,health,synergy and human resources development. The mainobjectiveremainstobetheexecutionofallcapitalprojectsandmaterialmanagementontime,withintheagreedbudget,inaccordancewiththeagreedtechnicalrequirementsandin-linewiththeagreedcustomerexpectations.

Overthelast15years,therehasbeenagradualmajorchangeandgrowth in thevalue, type,numberandcomplexityofprojects implementedbyQPTechnicalDirectorateaswellas a significant increase in the number of the TechnicalDirectoratecustomers.

AmajoraccomplishmenthasbeentheabilitytomovefrommanagingsmalltomediumsizerehabilitationtypeprojectswithanannualcapitalbudgetsofQR300milliontoQR400milliontotheyear2009statusduringwhichtheTechnicalDirectoratemanagedmega,multi-disciplinarytypeprojectswithtotalannualcapitalbudgetsofaboutQR20billion(QPprojects+externalprojects). Theoverall life cyclebudgetvalueinyear2009forQPprojectswasintheorderofQR64billionand forexternalprojectswas in theorderofQR42billion.The totalnumberofprojectshandledbyTechnicalDirectorateinyear2009was290projectscomprisingbothQPandexternalcustomers.

Achievements OverviewInallprojectsexecutedbytheTechnicalDirectorateduring2008–2009,projectdeliverables(e.g.gas,coolingwater,stateinfrastructure,etc.)wereprovidedtoprojectcustomersonscheduleasperend-users’need.

InApril2007,theTechnicalDirectorate initiatedtheINJAZProjecttodevelopaDirectorate-wideprojectmanagementsystemtoimproveworkpracticesandtostandardizeandrefine business processes. Ultimately, the outputs of thismajorimprovementprogramwillformanintegratedprojectmanagement system. The tasks are being carried oututilizingQP’sin-houseresources.TheprojectisscheduledtobecompletedbyMarch2011.

Acostestimatingdatabasehasbeensuccessfullydevelopedin-house, in cooperation with the IT Department. Thislandmark database incorporated best industry practicesandthevaluableQPexperience/expertiseinthisfield.ThisisthefirsttimeacentralizedcostestimatingdatabasehasbeenimplementedinQP.

Significantcostsavingwasachievedintheareaofmaterialsmanagement during 2008 – 2009 due to key initiativesincluding:❏Optimizationofinventorystockitems❏ Inventorysharingandexchangeofcriticalmaterialswithin

QP subsidiaries and GCC oil/gas companies❏Reviewing and optimizing user group materials

requirementsandsubstitutions

PlannedQatarizationhas increased to43%during2009(from40%in2008)withatargetincreaseto45%(orhigher)in2010.

Duringthisperiod,aTatweercommitteewasestablishedtomaximizeQatarizationpotentialintheTechnicalDirectorate.ThefollowingareexamplesofsuccessfulstrategicprojectsthathavebeenmanagedbytheTechnicalDirectorateduringthereportingperiod.

Oil & Gas Related Infrastructure Mega Projects❏ Ras Laffan Port Expansion Project:Thismajorproject

involves engineering and construction of significantexpansionoftheexistingRasLaffanPort(byafactorof5)inordertohandle77milliontonsperyearofLNGandotherliquidproductsbyyear2011.Thislandmarkprojectinvolvesmassive dredging and reclamationworks andconstructionof21kmofbreakwateraswell asberths/port infrastructure

❏ Ras Laffan Common Cooling Water Project Phase-II: Thismajor project involves engineering andconstruction of a centralized common cooling watersystemtoprovidecoolingwaterstokeycustomers,(e.g.Q-Power, Ras Gas, Qatar Gas, IPP-3, Shell GTL andBarzan)withinRasLaffanIndustrialCity

Infrastructure Project SupportingQatar Construction Industry❏ Gabbro Berth Expansion (Package 1) at Mesaieed:

This major project involves engineering and construction ofnewberthandsupply/installationof4Shipunloadersfor gabbro imports. This will increase the capacity tounload ships for gabbro trade and release existingfacilities for other trades

State Socio-Cultural Development Project❏ Carnegie Mellon University: This University was

built to provide state of art Business and IT facilities to Qatari nationals and foreign students, thereby addingto the visionof creatinga knowledge-based society inQatar.TheprojectislocatedwithinthesouthcampusofEducationCity inDoha.Thebuildinghasagrossfloorareaof42,000m2

Oil & Gas Pipeline Project❏ Strategic Gas Transmission Pipeline (SGTP)

Project: This major project involves engineering andconstructionoftwin36”diametergaspipelinefromRasLaffantoMesaieedfortransportationofsweetgas.Theproject also includes the construction of additional gas separation stations and the upgrading of major gas distribution stations

Oil & Gas Offshore Project❏ Three Wellhead Platforms: This major offshore project

involvesengineering,procurementandinstallationof3newwellheadjacketsinBHfieldandassociatedpipelinesandumbilicalsinBHandMMfields.Thescopealsoincludeshook-upandmodificationson23existingplatforms

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CRUDE OILAND NATURAL GAS

DUKHAN OPERATIONSMain Activities of DukhanDukhanisalargeoilandgasfieldextendingoveranareaofapproximately80kmsby8kmsand is locatedabout80kmstotheWestofDoha.DukhanFieldcompriseofthreesectorsfromNorthtoSouth-Khatiyah,FahahilandJaleha/DiyabOil and gas are separated in fourmain degassingstationswhicharecontinuouslymannednamelyKhatiyahNorth,KhatiyahMain,FahahilMainandJaleha.Unmannedsatellite stations are Fahahil North and Fahahil South,whileKhatiyahSouthisnowamannedstation.TheDiyabsatellitestationattheSouthendofthefieldhasnoprocessfacilities and the total oil production is sent to Jaleha station forprocessing.Stabilizedcrudeoil is transported throughpipelinetoMesaieedportabout100kmEastofDukhan.

Dukhanoil fieldhasproduction facilities toproduceup to335,000 barrels per day (b/d). However, actual annualproductionisbasedonreservoirmanagementrequirements.Otherproductionfacilitiesarerelatedtoassociatedgas,nonassociatedgas,rawNGLproductionfromassociatedgas,ArabDgascapNGLandArabDcondensateproduction.Inaddition to this, facilities for injectionofNorthFieldgasintoKhuffReservoir, Injectionof leangas intoArabDgascapandwaterinjectionintothemainoilreservoirsofArabCand Arab D for pressure maintenance are also operated on continuousbasisinDukhan.

Dukhan Field has a total of 189 oil producingwells, 183water injectionwells and 55 gas producers and injectorswells.AccordingtothelatestwellstatusthetotalnumberofwellsinDukhanare608,includingallproduction,injection,observation,closed-inandabandonedwells.

Dukhan operation has storage and export facilities atMesaieed Terminal. The terminal and export departmentreceives, stores, schedules and exports crude oil andnaphtha.

The production support activities comprise facilities of potablewaterdistribution,powerstation,workshopfacilitiesandcommunicationnetworkinDukhanField.

Inadditiontotheaboveproduction/processfacilities,varioushousing and recreational facilities are available in Dukhan andclubs, catering and security services areprovided toDukhanresidents.

Marketing and Development PlanThe main products conditioned for export from DukhanFields are crude oil, condensate, NGL and strippedassociatedgas(SAG).

Future facilities expansion plans in consideration are acidgas recovery plant, produced water re-injection facilities,drillingofnewwellandabandonmentofoldwells.

Major civil infrastructure development project are being implemented in Dukhan. Some of themajor projects arerelocationofindustrialfacilitiesoutsideofDukhan,Dukhan-Umm Bab-Salwa road, new sewage treatment plant,Dukhanhousingprojects,andothercivilprojects.

Major CustomersTheseproductsareexportedtovariousinternalandexternalcustomers:❏Crude oil is exported through terminal operations

departmentatMesaieedandalsosuppliedtoQPrefineryat Mesaieed

❏CondensatesisexportedtorefineryinMesaieed❏ArabDNGLisexportedtoNGL-4atMesaieed❏NGLisexportedtoNGL1andNGL2inMesaieed❏SAGisexportedtoQNCC,QAPCOandQAFCOviaQP

gasdistributionsystem

Historical Background on Dukhan Field DevelopmentDevelopment of Dukhan field has taken place in variousstages.Thefirstwellwasdrilledin1939/40confirmingthepresenceofcommercialquantityofoil. FurtherworkwassuspendedduetoWorldWarII.DevelopmentofKhatiyahsector was started from 1947 onwards and first oil wasexportedfromMesaieedon31December1949.

DevelopmentoftheothertwosectorsFahahilandJaleha/Diyab in Dukhanwas carried out in stages starting fromFahahilin1954followedbyJalehain1955.DukhanPowerstationwascommissioned in1958.Khuffnon-associatedgasreservoirwasdiscoveredin1959atanaveragedepthof 10,000 feet. In 1974 Fahahil Stripping plant was alsocommissionedtorecoverrawNGLfromassociatedgas.In1976firstdevelopmentwellinKhuffreservoirwasdrilledandeightKhuffwellheadtreatmentplantswerecommissionedinstagesfrom1978to1982.

Poweredwater injection tomaintain reservoir pressure ofbothArabCandArabDreservoirswastakenupinstagesstartingfrom1989withthelastphasebeingcompletedin1998.

ThepressurizationofKhuffreservoirwiththesurplusNorthFieldgaswasstartedfrom1992withthecommissioningofcompressorstationinFahahilarea.

ArabDgascaprecyclingplanttoprocess800millionstan-dardcubicfeetperday(mmscf/d)ofArabDcapgasandre-cover38,000b/dofstabilizedcondensateand750tonsperday(t/d)ofNGLwascommissionedin1998.Theresiduegasisre-injectedbackintothesamereservoir.Amajorproj-ecttoupgradetheArabDplantfacilitiestorecoverC2+rawNGL(about5,600t/dofNGL)andsupplytoNGL-4projectin Mesaieed has been completed and the plant has beencommissioned.

Amajorprojectofgasliftsystemtoartificiallylifttheoilforenhancingproductionandincreasingultimaterecoveryfromthefieldhasbeenimplemented.

Major Achievements up to 2009

Future Expansion PlansAmajorprojectofacidgasremovalplanttosupplysweetgas to Dukhan consumers is being planned to be installed in Dukhanbyyear2011.TheprojectiscurrentlyinEPICawardstage.AnotherMajorprojectoffullfield3-DseismicsurveyforDukhanFieldisunderway.Theprojectisexpectedtobecompletedin3rdquarter2011.

New residential, commercial and club facilities are underconstruction for increased level of staff in Dukhan opera-tions.InadditiontothisanewWesterndistricthospitalcon-structionhasbeencompleted.

OFFSHORE OPERATIONSQPoperatestwooffshoreproductionstationslocatedintheNorthEastofQatarterritorialwaters,PS-2andPS-3.Theseare located intheMaydanMahzam(MM)andBulHanine(BH)fields.

BothPS-2andPS-3platformsproducecrudeoil,associatedgasandcondensate.OilwithcondensateispipedtoHalulIslandforstorageandexport.Gasisprimarilyusedtoassistinliftingtheoilfromreservoirs,utilizedasstationandHalulfuelgasandfeedtoMesaieedNGLfacilities.

Major CustomersMajorcustomerstoQPforthepurchaseofcrudeoil,gasand condensate include Mitsubishi Corporation, ExxonMobil,Total,COSMO,MarubeniandItochu.

Major Production Achievements❏ MM Field:

– One well, MM-30L/S was sidetracked with theproductionpotentialof1,800b/d

–BHField:–NinenewwellsBH-122,129,133,134,136,137,138,141,weredrilledwithpotentialof9,675b/d

– Four producing wells, BH-14, 17, 71, 74, and onedumpflooder well (BH-6) were worked-over / side-tracked.

Productionpotential4,200b/d– Khuff formation appraisal commenced through drilling newwellBH-116.

–Onewell(BH-18)waskilledandplannedforwork-over/abandonment

Future Expansion PlansFutureexpansionplansonProductionStationsincludethefollowingmajorprojects:❏Building new production chemistry laboratory in Doha

andupgradingoflaboratoryinHalul❏Enhanceoilremovalfromdisposedwaterbyintroducingnewtechnologies❏ Implementproductionoptimizationbyintroducing“ShellSmart Field” system - Fieldware, Gas lift and Well Test

modules❏ IntegrityReviewofremainingMM/BHandHalulpipelines❏ Global structural re-assessment of structures in MM and

BHfields

RecognitionsPS-2andPS-3were recognizedbyQPmanagement forminimum gas flaring compared to other oil producers inQatar.

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NORTH FIELDDiscovered in1971, theNorthField liesoff thenortheastshore of the Qatar peninsula and covers an area of some 6,000sqkms,whichisequivalenttoabouthalfthelandareaoftheStateofQatar.

The North Field is considered to be the largest single nonassociatedgasreservoir intheworldwithtotalprovenreserves of 900 trillion standard cubic feet (tscf ). Thedevelopment of this vast natural resource is of great strategic significanceinQatar’soveralleconomicdevelopment.

NORTH FIELD ALPHAFirst commercial exploration of North Field gas resourcestartedinlate1991withinitialgasproductionfromPhaseI(AlphaProject).Gasismainlyusedforsupplytothelocalmarketandcondensateforrefiningorexport.Aportionofthe gas produced from this project is re-injected into the country’scontingencyreserveinDukhan.

During2009,averageproductionwas788mmscf/dofgasand24,550b/dofstabilizedcondensate.Totalproductionwas 289 billion standard cubic feet (bscf ) of gas and 9millionbarrelsofstabilizedcondensate.

During2009performance test, ithasbeenobserved thatenhanced production was not achievable even after fullopeningofchokevalves.Theprojectforenhancingexistingchokevalvecapacityisundertakenwithaplantoimplementit for all choke valves in a phase wise manner startingfrom2010.Additionally,thepreliminarystudyof longtermsolution for enhancing the production plateau of NFA has beeninitiated.

AL-KHALEEj GAS PROjECT (AKG)The project is designed to develop reserves from the North Field to supply 2.0 billion standard cubic feet per day(bscf/d) of sales gas to domestic consumers in addition to condensate,ethane,LPGandsulfurforexport.

The AKG Development and Production Sharing Agreement (DPSA) was signed with ExxonMobil on 2nd May 2000and ratified on 12th July 2000 by an Emiri Decree. TheEPCforPhase-I(AKG-1)wasawardedinMarch2003andfirst commercial gas delivered on 2nd November 2005.Thisphaseissupplying744mmscf/dofsalesgastoRasLaffanPowerCompanyLimited,OryxGTL,Q-PowerandtoindustriesinMesaieedarea.

QP has installed a new 36-inch lean gas pipelinewith adesigncapacityof1.0bscf/dtosupplyMesaieedindustrialareainitiallywith240mmscf/d.

Phase-IIdevelopment(AKG-2)hasanominaldesigncapacityof1,250mmscf/dforsupplyinggastolocalindustriesandpowergenerationplants.FEEDforAKG-2onshorefacilitieswascompletedbyChiyodaandEPCawardedinJune2006.AKG-2startedupduring3rdQuarter2009.855mmscf/dgasand31thousandbarrelscondensateperdaywastheaverageproductionduring2009withtotalproductionbeing312bscfand11.3millionbarrelsofcondensate.

RasGas is operator of the AKG facilities and has project managementresponsibility.

BARzAN GAS PROjECTAHeadsofAgreement(HoA)wassignedwithExxonMobilon 20th February 2007 to develop approximately 1.7bscf/dofNorthFieldgastoproduce1.4bscf/dofsalesgasforthedomesticmarket(mainlyforpowergeneration)inadditiontoassociatedcondensate,ethane,LPGandsulfur.

A Joint Venture (JV) company will be established withExxonMobil holding 10% and QP holding 90% equity.Theonshoreplantof theprojectwillbesituated inRasLaffanCitytothewestofPearlGTLsite.

Appraisal drilling has commenced. The three offshorejackets have been installed in 4th quarter of 2009.TheoffshoreTopside&pipeline FEEDwas awarded toMcDermott and has been completed in 1st quarter of2009. The onshore FEED is progressing by Chiyodaandthecurrentplanforcompletion isby3rdquarterof2010.BothoffshoreandonshoreEPCareplannedtobeawardedbytheendof4thquarterof2010.RasGaswillmanage the development up to the end of project phase andthenwillberesponsible foroperationof the facility.Start-upofTrain-1 istargetedformid-2014andTrain-2approximately9monthslater.

ExPLORATION AND PSA OIL DEvELOPMENT ACTIvITIES QPcontinued to adopt thepolicy of increasingQatar’shydrocarbonresourcesbyintensifyingtheexplorationandappraisal activities to cover most of Qatar areas through ExplorationandProductionSharingAgreements(EPSA)and Appraisal/Development and Production Sharing Agreements(ADPSA)withmajorinternationaloilandgascompanies.

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The following is a summary of 2009 exploration and ap-praisalactivitiesandachievements:

Block “BC” Pre-Khuff (CNOOC Middle East (Qatar) Ltd.):TheEPSAwassignedonAugust31,2009.TheEmiriDe-creetoendorsetheagreementwasissuedon15December2009.Explorationactivitieshavealreadystarted.

Exploration and appraisal activities were ongoing in theEPSAblocksasfollows:

Exploration Areas under Bidding:Block“D”(Pre-Khuff)EPSAbiddingcampaignisprogressingasplanned.

Exploration Open Areas:Blocks1,2,7,8,10,13,and14areunderQPin-housestudies.

EPSA/DPSA Production Fields ActivitiesThefollowingoffshorefieldsundersevenPSAsarecurrentlyinvariousstagesofdevelopmentbythefollowingoperatingcompanies:

Al Shaheen Field (Maersk Oil Qatar):Implementationoftheapproved2005FieldDevelopmentPlan (FDP)contin-uedthroughout2009initiallywithsixdrillingrigsinoperationreduced to two rigscurrently.Some40wellsweredrilledduringtheyear,bringingthetotalnumberofwellsdrilledto129outoftheplanned169FDP2005wells.Installationofnewjackets,pipelinesandcablesaspartofFDP2005con-tinuedin2009.

Average yearly production for the year 2009 stood at297,800b/d,approximately10% less than2008produc-tionrate.Thedecreasewasprimarilyduetosurfacefacilitiesinstallation,hookupandcommissioningwhichwasactiveinQ42009.

Water injection increased from 390,000 b/d in 2008 to540,000b/din2009.Some108.7millionbarrelsofoilwereproduced fromAlShaheen in 2009, bringing the total oilproducedfromthefieldto939.7millionbarrelsattheendof2009.

About90%ofFDP2005 facilitieswere installedbyendof2009.ItisexpectedthatbyendofApril2010FDP2005fa-cilitieswillbecompletedandhandedovertoMOQ’sopera-tion.

Ahigh-resolution3DseismicsurveycoveringtheentireAlShaheenField,whichwasacquiredin2006/2007,waspro-cessedin2008andinterpretationcontinuedin2009.The3D seismic survey consisted of 2,300 sq kms ofmarinestreamersurveyand125sqkmsofseabedcabledata.

Study work on the application of enhanced oil recovery(EOR)techniquescontinuedin2009.Anappraisalwell,AP-19wasdrilledtoprovideadditionaldataandinformationfortheEORstudies.

Al Rayyan Field (Occidental Qatar Energy Company):In October 2007, Occidental Qatar Energy Company(OQEC) acquired Anadarko’s interest and became theoperatoroftheAlRayyanfield.Atotalofthreewellsweredrilledin2008and2009.Currentfieldactivitiescontinuetofocusonimprovingfieldoperationalefficiencyandsustain-ing production through maintenance and ESP change-out workovers.

Anewfielddevelopmentplan(FDP)isbeingformulatedthatenvisagesthedrillingof7newwellswithfacilityupgradesandcapacityexpansion.

Al Khalij Field (Total E&P Qatar Ltd.):Drillingofinfillde-velopmentwellsinadditiontopendingwellworkovershasbeenongoingduring2009inparalleltovariousgeologicalandreservoirstudies.

Average yearly production for the year 2009 stood at36,000b/dandaveragewater injectionofabout170,000b/d.Some13.2millionbarrelsofoilwereproducedfromAlKhalijin2009,bringingthetotaloilproducedfromthisfieldto146.4millionbarrelsattheendof2009.

Anewfielddevelopmentplan(FDP-v2)isunderdiscussion.ImplementationofthisFDPisexpectedtoextendthepro-ductionplateaulevelandwillaccordinglyleadtoanincreaseinreserves.

Idd El Shargi North Dome (Occidental Petroleum of Qatar Ltd.):Drillingactivitiescontinuedduring2009aspartofthePhaseIIIdevelopmentplan.Asofend-2009,about80%ofPhaseIIIwellshavebeendrilledandcompleted.

Shuaibagas injectionpilotwas successfully implementedtoimproveoilrecoveryandforpressuresupportintheSh-uaibacrestalarea.Thegasinjectioniscontinuingaspartoftheoverall reservoirmanagement strategy in theShuaibareservoir.

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NORTH FIELDThesenewwellswillbedrilledthroughtheexistingsparewellslots.EngineeringandProcurementactivitiesfor20»pipeline(ISNDPhase-III)betweenPS-1K&IS-25wereinitiatedandinstallationcompletionisscheduledforQ42010.

Idd El Shargi South Dome (Occidental Petroleum of Qatar Ltd.):Aspartoftherevisedfullfielddevelopmentplan(RFFDP), fourwellsweredrilledandcompletedon IddElShargiSouthDome.Newdrillingandstimulationtechniqueswereimplemented.

AnewRFFDPisbeingformulated.AphaseddevelopmentconceptisproposedwithPhase1developmenttoconsistofone4-slotMinimumFacilitiesPlatformandthedrillingoffourwells.Theexisting18”ISSDmainoillinewillbereplacedwithanew12”pipelineastheexistingpipelineiscorrodedin2009andfoundunfitforprolongedusage.

Al Karkara & A-Structures (Qatar Petroleum Development Company):All threestagesofAlKarKaraand A-North Full Field Development Plan have been completed.

TheFullFieldDevelopmentPlanforA-SouthStructurewasapprovedbyQPin2007anditiscurrentlybeingexecuted.Thefieldisanticipatedtocomeonproductionin1Q2011.QPDwillcontinuetoachievezerogasflaringbyinjectingheexcesssourgasbackintothereservoir.

El-Bunduqfield(BunduqCompanyLimited):El-Bunduqfieldwasdiscoveredin1965andcommercialoilproductionstartedin1975.Atoffshore,associatedgas,oilandwaterareseparated.Theassociatedgas(about40mmscf/d)andproducedwaterarere-injectedintothereservoirs.Theoilissentthrougha27kmlong18”pipelinetoDasIslandfacilitiesfor furtherprocessingbeforeexporting.Currently,average14,000b/doilisbeingproduced.

DRILLING DEPARTMENTDrilling OperationsQP continued its activities in drilling, working over andwell servicing operations in its Onshore Field (Dukhan)andOffshoreFields(MaydanMahzamandBulHanine)in2009using thebest industrypractices inaneconomical,safeandenvironmentallyfriendlymanner.DrillingoperationsandrelatedserviceswereconductedinaccordancetoISO-9001andISO14001.

Onshore Field (Dukhan)The land drilling rigs count remained at four and main activitieswereasfollows:❏Atotaloftwentytwo(22)developmentswellsweredrilled

and completed❏A totalof twenty two (22)wellswereworkedoverand

reactivated❏Atotalofthree(3)wellswerepluggedandabandoned

Offshore Fields (Maydan Mahzam and Bul Hanine)The offshore drilling rig count remained at three and the main activitieswereasfollows:❏Atotalofnine(9)developmentwellswerenewlydrilled

andone(1)ofexistingwellswassidetracked❏AnappraisalKhuffwellwasdrilledinBHField❏A total of nine (9) wells were worked over and

reactivated.

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HALUL ISLANDHalul Islandis locatedaround96kmNorth-EastofDoha,with an area of 1.5 square kilometers. Halul is themainstorageandexportterminalforQatarMarineCrude(QMC)oil.Ithasallthefacilitiesofamajorinternationaloilterminal.

Theislandisequippedwith11largecrudeoilstoragetanks,withatotalcapacityof5millionbarrels,crudeoilpumpingfacilities, power generation andwater desalination plants.CrudeOilisblendedandexportedfromHalultocustomer’soiltankersmooredoffshore.

CrudeoilfromthreeotheroffshorefieldsoperatedbyQPjointventurepartnersonaproductionsharingarrangementwithQP,isalsoprocessed,storedandexportedatHalulIsland.

Occidental Petroleum of Qatar Ltd (OPQL) operates PS-1 (Idd El-Shargi Field, North and South Domes), TOTALExploration & ProductionQatar (TEPQ) operates Al-Khalijfield, and Qatar Petroleum Development-Japan (QPD)operatesAl-KarkaraandA-StructureFields.

Halul Island sustainable environmental management program implemented and recognized at the “OffshoreArabia 2009” for achieving environmental excellence andculturalawareness

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LNG

QATARGAS OPERATING COMPANY LIMITED (QATARGAS)Qatargaswasestablishedin1984todevelopandprocessnatural gas fromQatar’sNorth Field to produce liquefiednaturalgas(LNG)forexport.ThefirstLNGdeliverytoJapanwasmadein1997.

ThevariousexpansionprojectsunderQatargasOperatingCompany Limited made considerable progress in 2009towardsachievingQatar’svision toexport77million tonsperannum(mmt/a)ofLNG.

Current OperationsQatargas 1:Qatargas1operatesthreeLNGtrainswithatotalproductionofabout10mmt/aofLNG.Thekeylongterm customers for Qatargas 1 are Chubu Electric and seven other Japanese power and gas companies. Theshareholders in Qatargas 1 are Qatar Petroleum (65%),ExxonMobil(10%),Total(10%),Mitsui(7.5%)andMarubeni(7.5%).

In2009,Qatargas1produced9.57mmtofLNG.Thetotalcondensateproductionwas17.1millionbarrels.Atotalof169LNGcargoesweredeliveredbyQatargas1 in2009.2009wascompletedwithoutaLostTimeAccident (LTA)both Offshore and Onshore. Offshore and onshore havecompleted over seven and six years respectively,withoutLTAs.

Qatargas 2: Qatargas2consistsoftwomegaLNGtrains(Train4andTrain5),eachwithaproductioncapacityof7.8mmt/aofLNG.ThesearethelargestLNGtrainstobeeverbuilt.

Train 4 and Train 5 started production in March andSeptemberof2009respectively.Qatargas2istheworld’sfirst fully integrated value chain LNG venture. In additiontoLNG,Qatargas2 iscapableofproducing0.85mmt/aof Liquefied Petroleum Gas (LPG) and 140,000b/d ofcondensate.Ithasafleetof14newgenerationQ-FlexandQ-MaxLNGvesselswithcapacitiesrangingfrom210,000cubicmetersto266,000cubicmeters.AreceivingterminalwasalsoconstructedaspartoftheQatargas2project.

The shareholders in Train 4 are Qatar Petroleum (70%)andExxonMobil(30%)whileinTrain5,inadditiontoQatarPetroleum (65%) and ExxonMobil (18.3%), Total hold a16.7%stake.

ThemaindestinationfortheLNGwillbethespeciallybuiltSouth Hook terminal located in the deep-water port ofMilfordHaven,UnitedKingdom.TheretheLNGisregasifiedandfedintotheUK’snationalgrid.

In2009,Qatargas2produced6.16mmtofLNGand18.7millionbarrelsofcondensateanddeliveredatotalof53LNGcargoes.

Qatargas3:Qatargas3 isa jointventurebetweenQatarPetroleum(68.5%),ConocoPhillips(30%)andMitsui&Co.Ltd. (1.5%). The project involves the construction of oneLNGtrain(Train6)withacapacityof7.8mmt/a.TennewgenerationQFlexandQ-MaxLNGvesselswillbeusedtotransporttheLNGtomarketsprimarilyinAsiaandtheUnitedStates.Productionisexpectedtocommencein2010.

Qatargas 4: Qatargas 4, a joint venture between QatarPetroleum(70%)andRoyalDutchShell(30%)involvestheconstructionofoneLNGtrain(Train7)withacapacityof7.8mmt/a.Qatargas4willbefullyintegratedwithQatargas3offshoreandonshore,engineeringandEPCofbothtrainswillalsobeintegrated.

WithadedicatedfleetofeightLNGcarriers(Q-FlexandQ-Max),theprimarymarketsforQatargas4willbeAsia,NorthAmericaandEurope.Productionisexpectedtocommencein2010.

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Projectownersarethefollowingcompanies:

RasLaffanLiquefiedNaturalGasCompanyLimited(RL):RLwasestablishedin1993toproduceLNGandre-latedproductsfromitstwotrains;Trains1and2.Thetwotrainshaveacombinedcapacityof6.6mmt/aaswellasabout45,000b/dofcondensate.RL’skeycustomerisKo-reaGasCorporation(KOGAS).

RasLaffanLiquefiedNaturalGasCompanyLimited(II) (RL (II):Establishedin2001toproduceLNGandrelatedproducts,RL(II)ownsTrains3,4and5.Eachofthesetrainshas a capacity toproduce4.7mmt/a andabout 28,000b/dofassociatedcondensate.RL(II)’skeycustomersarePetronetLNGofIndia,EdisonofItaly,DistrigasofBelgium,EDFofBelgium,CPCofTaiwan,andEndesaofSpain.

RasLaffanLiquefiedNaturalGasCompanyLimited(3)(RL(3):RL(3)wasformedin2005toproduceLNGandrelatedproducts.RL(3)ownsTrains6and7,whicharecur-rentlybeingconstructed.Train6and7willeachhaveaca-pacitytoproduce7.8mmt/aandapproximately50,000b/dofcondensate.RL(3)’scustomersincludetheUnitedStates(Train6)andAsianmarket(Train7).

Main Operations Train 1 and 2: InJune1999, thefirstspotcargo loadedonto the LNG tanker GIMI marked a major milestone for RasGas.Train 1 and 2 were RasGas’ first onshore LNGtrains,capableofproducingacombined6.6mmt/a.Thisfacilityincludesinletgasreceptionandtreatmentfacilities,condensatestabilization,gasliquefaction,sulfurrecoveryandloadingfacilities,andallnecessaryutilityandoff-sitesystemsandinfrastructure.

Train3and4:InFebruary2004,athirdRasGasLNGtrainbeganexportingLNGtoIndia.Train3wasbuilttofulfillthemajorpartof theagreementwith India’sPetronetLNGtosupply5.0milliontonsofLNGperannumforaperiodof25years.InAugust2005,Train4wascommissionedwithinbudgetandaheadofschedule.TheleanLNGproducedbyTrain4fulfillsRasGas’Europeansalescommitments.Trains3and4eachhaveacapacityof4.7mmt/a,representingapertrainincreaseof40%overTrain1and2.

Train 5:TheinaugurationofTrain5inMarch2007tookQa-tar’s totalLNGproductioncapacity toapproximately30.7mmt/a,establishingQataratthetopofthelistofglobalLNGproducers.SimilartoTrain3and4,Train5hasaproductioncapacityof4.7milliontonsofLNGperannum.Train5alsoproduces13,000b/dofpropaneandbutaneandapproximately 33,000 b/d of gas condensate. The LNGfromTrain5islargelyexportedtoagrowingportfolioofcus-tomersinEurope.Together,Train3,4and5formedpartofthefirstRasGasExpansion(RGX)project.

Trains 6:Representamajornewchainofproduction forRasGas.ItbelongstoanewbreedsofLNGtrain,operatedbyRasGasanditssistercompanyQatargas,witheachtraincapableofproducing7.8mmt/aofLNG.ThenewtrainwasformallyinauguratedinOctober2009.Thestart-upofTrain6boostedRasGas’LNGproductioncapacityto28.5mmt/a.ItformspartofRasGasExpansionPhase2Project(RGX2).

Train 7: Train7isscheduledtocomeonstreamin2010.To-gether,Trains6and7willgreatlyextendtheglobalRasGas’globalreach.Train7ispartofRGX2.UponcompletionTrain7willbringthecompany’sLNGproductioncapacityuptoapproximately37mmt/a.

RASGAS COMPANY LIMITEDRasGasCompanyLimited(RasGas)isaQatariJointStockCompanyestablishedbyQatarPetroleumandExxonMobilwhoare70%and30%shareholdersrespectively.

RasGasisoneofthepremierintegratedliquefiednaturalgas(LNG)enterprises in theworld.Since itscreation in1993,RasGashasdevelopedworld-classfacilitiesfortheextrac-tion,storage,processingandexportofLNG,andhasen-teredintolong-termagreementstosupplyLNGtocustom-ers inKorea, India, Italy,Spain,Taiwan,Belgium,and theUnitedStates.

RasGashasemergedasaleadingplayerintheglobalnatu-ral gas industry, supplyinganddeliveringLNG to interna-tionalcustomers,withafleetof long termcharteredLNGvessels and initiated technology-led projects such as theproductionandsaleofhelium.Bytheendof2009,RasGas’LNGproductioncapacityreached28.5mmt/aofLNGwithsix trains inoperations. It isexpectedthat thisproductioncapacitywillbeapproximately37mmt/abytheendofthedecadewiththecompletionofsevenoperationaltrains.

RasGasactsastheoperatingcompanyforandonbehalfoftheprojectownersnotedbelow.Thecompany’spersonnelmanageandsupervisethedesign,constructionandopera-tion of various facilities under the terms of a services agree-mentforoperationandmaintenancesignedin2002.

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PIPELINES

DOLPHIN PROjECTThe Dolphin project entails development of reserves fromtheNorthField for theproductionofwellheadgassufficienttoexport2.0bscf/dleangastotheUnitedArabEmirates.TheprojectprocessesgasatRasLaffanwherecondensate,ethane,LPGandsulfurarestrippedoutandsweetleangasisdeliveredtotheUAEthroughasub-seapipeline.

The Development and Production Sharing Agreement (DPSA) was signed between QP and the contractor(comprisingDolphinInvestmentCompany51%andTotalof France & Occidental Petroleum of the USA 24.5%each) on 23rdDecember 2001. The development planwas signed on 11th December 2003. The main EPCcontractfortheonshoreplantatRasLaffanwasawardedtoJGCon12thJanuary2004.Thedeliveryofexportgasfromfirst streamcommenced in3rdQuarter2007, thesecondstreambeganinFebruary2008andfullleangasexporttoUAEcontinuessteadily.

In2009,theaverageproductionwas2,330mmscf/dofgasand97,210b/dofcondensate.

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NGL AND LOCAL GASQP GAS OPERATIONSQP Gas Operations under the Operations Directorate is re-sponsible for managing the complete value chain for nonas-sociatedgasproduction,associatedgasandNGL liquidsprocessing,localtransmissionanddistributionandexportofliquefiedpetroleumgas(LPG)andcondensates.

Key Operational Objectives of Gas Operations❏Operate the plants with highest possible levels of

personnelandplantsafetywhilemeetingallQPandStateHSE regulations and guidelines

❏ Optimize processing of various feed streams so as to maximize plant utilization and consequently maximizeState revenues and income

❏MeetfuelgasdemandsofStatepowerplants❏MeetexporttargetsforLPGandNGLcondensate❏Meetfuelgas/feedstockrequirementsforlocalIndustry❏Coordinate with various upstream and downstream

entities within the State of Qatar to prepare year-wiseintegratedshutdownplansoas tominimizeaggregateindustries downtime and consequentlymaximize Staterevenues and income

Assets Under the Gas Operations❏ Non-associated gas production facilities at North Field

Alpha(NFA)offshoreandKhuffGas(KG)onshorefields❏Gas/NGL processing facilities at NGL complex in

Mesaieed❏ Storage tanks for LPG and condensates in Mesaieed❏LPG/condensatesexportjettyfacilitiesatMesaieed❏Transmission and distribution pipeline network for

distributingvarioushydrocarbongasesandliquidswithinthe State of Qatar

NGL ComplexNGLcomplexinMesaieedcomprisesofthefollowingmajorplantsandfacilitiesforgasandNGLprocessing,treatment,storageandexports:❏NGL-3gasplantandgassweeteningunit(AGR/SRU)❏ NGL-3 condensate plant❏NGL-2strippingplant❏NGL-1,NGL-2,NGL-4Trains1&2fractionationplants❏ Tank farm for storage of LPG and condensates❏NGLjettyforexportofLPGandcondensates

NGLcomplexreceivesfeedstreamsfromvariousoffshoreandonshore facilitiesandproduceseight salesproducts.Thefeedstreamsare:❏NFgas/condensateliquidfromNFA❏RawassociatedgasfromAl-Shaheenoffshorecrudeoil

fields❏Raw gas from Qatargas/RasGas LNG plants at Ras

Laffan❏RawassociatedgasfromPS–1/2/3offshoreoilfacilities❏NGLliquidsfromFahahilstrippingplantandgasrecycling

plants in Dukhan❏LPG/pentane waste streams from Mesaieed area

industries-QPRefinery,QAPCO,Q-ChemandQAFAC

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NGL AND LOCAL GASTransmission and Distribution Pipelines NetworkTheTransmission andDistributionNetwork comprises aninterconnectedhydrocarbonpipelinenetworkofover3,100kmsofpipelines,associatedmanifoldsand52distributionstationslocatedthroughouttheStateofQatar.

Fuel / feedstock gases are received from QP Gas Operations as well as from QP Dukhan Operations, Al-Khaleej Gas(AKG-1/2),Dolphin(DEL),QatargasandQAPCOplants.

Thisnetworkcaters to the fuelgasneedsofQatarStatepower plants for power generation and desalination.Additionally fuel / feedstock gas is supplied to variousindustries within Qatar, viz. Q-Chem, QAPCO, QVC,QAFCO,QAFAC,QASCO,QPRefinery,Qatalum,QNCC,GulfCementCompany,Dolphin(DEL),RLOC,ShellQatarGTL(PearlGTL),etc.Flexibilityinoperationsismaintainedto meet the key objective of supplying contracted gasquantitieswithin specifications to consumerswithout anyinterruptions.

GasOperations, through itsTransmissionandDistributionDepartment, acts as integrated shutdowncoordinator forallthehydrocarbonindustriesoperatinginQatar.Advanceplanning, coordination and flexibility in operations areutilizedtominimizetheaggregatedowntimeensuringthatproductionlossesareminimizedandrevenueismaximized.

Transmission and Distribution Department also acts as the coordinator and facilitator for all pipeline road crossings and construction road openings throughout the State of Qatar. The necessary coordination is conducted withStateagenciesandorganizationslikeQ-Tel,UPDA(UrbanPlanning & Development Authority), Armed Forces, NDIA(NewDohaInternationalAirport),Kahramaa,Ashghal,etc.

2009 Highlights for Gas Operations❏131millionbarrelsperday(mmb/d)equivalentLPGand

condensates,834mmscf/dNFleangas,120mmscf/dOFFSAG, 4,757 t/d of ethane rich gas and169mmt/d sulfur were produced during the year 2009 by GasOperations

❏92mmb/dequivalentLPG+condensatewereexported.1,215 mmscf/d fuel/feedstock gases were suppliedto State power plants and local industries. Localdeliveriesweremade forbutanetoQAFAC(1,271t/d),ERGtoQChem/QAPCO(2,608/2015t/d),NorthFieldcondensates to QP Refinery (23,000 b/d), sulfur toQAPCO(169t/d)andstrippedassociatedgastoQAPCOethanerecoveryunit(180mmscf/d)

❏Off-spec processing system in NGL plants was fullyoperationalizedandAl-ShaheengasprocessingcapacityincreaseinNGL-3wasachievedwithmajorrevenueandHSE gains

❏Fuel gas deliveries were commissioned for newconsumers, viz. M Power and Ras Girtas PowerPlants,Qatalum aluminumplant andQNCC-4 cementplant.NewgasdistributionstationsandpipelineswerecommissionedinRasLaffan,MesaieedandDohaareas.Transmissionanddistributionpipelinenetwork(salesgasgrid) in Ras Laffan has been set up for fuel gas and ERG involving QP stations, pipelines, multiple suppliers andmultiple consumers. Arrangements are completed forethylenesuppliesfromRLOCplantatRasLaffantoQ-Chem-2/QatofinplantsinMesaieed

GasOperationsisISO9001(QMS)certified.AspartofQPIntegratedManagementSystem implementationplan,ac-tions are initiated towards obtaining ISO 18001 (OHSAS)andISO14001(EMS)certifications.GasOperationsfacili-tiesarefullycompliantwiththeConsent-to-Operatecondi-tionsoftheQatarMinistryofEnvironment.

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QP REFINERYQatarPetroleumRefinerystartedasasmalltoppingplantin1958,whichhasgrownovertheyearsintoagiantrefineryorganization,successfullymakingtheStateofQatarselfsuf-ficientandexport-orientedinrefinedoilandpetroleumprod-uctsbyprovidingaddedvaluetopartofcountry’snaturalwealth,improvingrefiningeconomicsandprovidingcitizenswiththenecessaryexpertiseintheareasofmanagement,operations,engineering,maintenanceandmarketing.

Year 2009 OverviewThemainactivityoftherefineryistoprocesscrudeoilandcondensate into various finished products, which are in-tendedtomeetbothdomestic(totally/partially)andexport.The main finished products are liquefied petroleum gas(LPG),petrochemicalnaphtha,thesurplus(ifavailable)pre-miumgasoline,supergasoline,jetfuel,diesel,decantoilandfueloil.

Theplannedintakesandprocessingcapacitiesfor2009,inbarrelsperstreamday(bps/d)wereasfollows:

Thetotalrefinedproductsexportedduringtheyearamount-edto1,866,637metrictonsagainsttheplannedexportvol-umeof1,745,000metrictons.Refineryimported683,020metrictonsofLGO,49,978metrictonsofJetA-1tomeetthehighincreaseinlocaldemandand137,122metrictonsofvacuumgasoiltooperate/runfluidizedcatalystcrackingunitduringthecrudeunit#2shutdownforregularroutinemaintenance.

MarketingofRefineryProductsThemarketingandcommercialaspectsforexportsalesofrefineryproductsarebeingundertakenbyQatarPetroleumMarketingDirectorate(Tasweeq)inclosecoordinationwithProductionPlanning,SchedulingandExportDivision.TheProductionPlanning,SchedulingandExportDivisionisre-sponsibleforworkingouttheannual,quarterlyandmonthlyplanningandproductsexportschedule.

Major Customers and DestinationsThemajor customers for export sales are Shell, FALOil,Bakri TradingCompany,EnocSupply&Trading,TotalOilTradingSA (TOTSA),BPandMarubeni.QPRefineryalsosuppliedrefinedproductslocallytoWoqod,SEEF,Qafac,QapcoandNGL.

TheArabGulfwasthemajordestinationforrefinedprod-uctssuchasgasoline,DCO,SRFOandJetA-1.NaphthawasmainlyexportedtopetrochemicalplantsinFarEastandSouthEastAsia.Someof the refinedproductswerealsoexportedtoAustraliaandAfrica.

LAFFAN REFINERYTheLaffanRefineryproject is jointly ownedbyQatarPe-troleum, ExxonMobil, TOTAL, Idemitsu, Cosmo, Mitsui &Marubeni companies with Qatargas Operating Companyas theoperator.Theplant isa146,000b/d facilityand itwascommissionedduring the thirdquarter of 2009. Themain products produced including hydrotreated naphtha,hydrotreatedkeroseneandgasoil.

REFINING

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REFININGFuture expansion plansThefocusfor2010willbetofurther improvethereliabilityof the plant and as such continue to increase the average productionvolumes.Inaddition,OryxGTLplanstogrowtheproductionvolumecapacitythroughadebottleneckingproj-ect,whichissupportedbyanagreementsignedwithGasalduring2009forthesupplyofadditionaloxygen.

PEARL GTLInJuly2004,aDevelopment&ProductionSharingAgree-ment(DPSA)wassignedbetweenQPandQatarShellGTLtodevelopthePearlGTLproject.PearlGTLisanintegratedprojectwhichwill develop about 1600mmscf/d ofNorthFieldGastoproduceapproximately140,000b/dofsynthet-icfuelsincludingbaseoilsformanufacturinglubricatingoils.

In2008,theproductionofkerosenewasaddedtotheprod-uctslate.ThiswillsupporttheagreementbetweenAirbus,Qatar Airways, Qatar Petroleum, Rolls Royce and Shellsigned in late 2007 to investigate fuel-related benefits ofsyntheticjetfuelsinaviationturbineengines.

Theoffshoredrillingcampaigncontinuedatanexceptionalpaceduringthe2009andwilldeliverdrilledandcompletedwellsinQ1orearlyQ22010.Surfaceconstructionispro-gressingandstartupisscheduledforQ4,2010.

The development of the permanent organization to manage the completed GTL plant progressing as planned to ensure that adequatelyqualifiedand trainedstaff are available atplantstartup,whichisscheduledforQ42010.

ORYx GTLOryxGTLLimitedisalargescalegas-to-liquids(GTL)plantinQatarconvertingnaturalgasintohighqualityGTLprod-ucts(GTLdieselandGTLnaphtha).TheplanthasbeeninoperationsinceApril2007andthebusinesshasexceededforecastsintheareasofproductionvolumes,operatingcost,Qatarizationandnetprofitduring2009.TheshareholdersQatarPetroleum(51%)andSasol(49%)wererewardedwiththefirstcashrepaymentsduringtheyear.

Marketing & CustomersOryxGTLhassold1.9milliontonsor16.2millionbarrelsofpremium GTL products to the market and the feedback fromcustomers ispositive.ThepremiumGTLdiesel (lowsulfur, lowaromatics andhigh cetanenumber)wasusedasdieselblendingstocktoproducelowsulfurdieselmainlyinWesternEuropeandtheGTLnaphthawasusedfortheproduction of ethylene East of Suez. Customers includeoilcompanymajors,steamcrackerownersandtradersoftheseproducts.

Achievements 2009The monthly production volumes continued to improveandtheplantrampedupto100%loadfromJanuary2009onwards. The plant achieved amaximum proven rate ofaround32,000b/dexcludingLPGproduct.Positiveprog-resswasalsomadetoimprovethereliability,whichwillhavefurtherbenefits in the years tocome.TheFTcatalyst lifeperformedsignificantlybetterthanthebudgetplanfor2009,whichresultedinareductioninoperatingexpenditure.OryxGTLLPGexporttoAKGfinalizedandreadyattheendof2009.

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QATAR FERTILISER COMPANY (QAFCO)

QatarFertiliserCompany (QAFCO)was founded in1969.ThecompanyisnowownedbyIndustriesQatar(IQ)as75%shareholderandYaraNederlandB.V.as25%shareholder.

Since its inceptionQAFCOhas steered itsway success-fullyrespondingadequatelytotheworldmarketdemandforfertilizer.Throughscientificstrategicplansandintegrationofthe latest technologiessteadilydevelopedover theyears,QAFCOhaslifteditsproductioncapacitytoof2mmt/aofammoniaand3mmt/aofurea.Accordingly,QAFCOhasbecomeoneofthemainproducersandexportersofam-moniaandureaintheworld.

QAFCO’s Performance in 2009Intheyear2009QAFCOpostedrecordfiguresintheareasofproduction,salesandprofits.

Themainmarkets forammoniawere India ((64%)Jordan(21%),Morocco(6%),SouthAfrica(4%),China(2%),Aus-tralia(2%),andTaiwan(1%).ThemainureamarketswereUSA (17%), Thailand (16%), India (12%), Australia (10%),S.Africa (8%),Philippines (7%),Bangladesh (7%),S.Ko-rea(4%),Sudan(3%),Brazil(3%),SriLanka(3%),Vietnam(3%),Ethiopia(2%),Pakistan(2%),Mexico(1%),NewZea-land(1%),Italy(1%),Japan(0.5%),Tanzania(0.5%),Taiwan(0.4%),Mozambique(0.4%),Kenya(0.3%),Yemen(0.2%).

MarketingSomeofthefactorswhichhavepropelledQAFCOtoalead-ingpositionintheinternationalfertilizermarketinclude:highquality products, a strategic geographic location, efficientlogisticfacilities,andreliabilityinsupply.

Deliverieshavebeenmadethroughouttheworld,withIndia,Jordan,Morocco,SouthAfrica,AustraliaandChinaofmajorimportanceintermsofQAFCO’sammoniaexportsandthemarkets of Africa and Asia plus the USA predominating for QAFCO’sureaexports.

Quality, Environment and SafetyGivinghighprioritytoexcellence,QAFCOhasscrupulouslyadheredtointernationalstandardsofquality,safety,occupa-tionalhealthandenvironmentalprotection.

ThecompanyboaststhreeISOManagementSystemCer-tifications:ISO9001;2000,ISO14001:2004,andOHSAS18001standards.WiththesecertificationsQAFCOenjoysthe prestige of a globally recognizedmanufacturer in thechemicalprocessindustry.

Future ProspectsQAFCO-5&QAFCO-6Projects:Countinguponitssuccessfulbusinessexperienceinthecourseofthelast4decades,andencouragedbythenationalvastreserveofnaturalgas,QA-FCOhastakenuponitselfthetaskofdrawingupanambitiousfuturevisiontoensurefurtherdevelopmentofthecompany.Inthiscontext,in2007QAFCOstartedthepracticalstepsinex-ecutingthe(QAFCO-5)expansionprojectwhichisexpectedtocomeonstreaminearly2011andin2009startedtheconstruc-tionofQAFCO-6expansionproject.TheQAFCO-5expansionproject,willraiseQAFCO’sannualproductioncapacityto3.8mmt/aofammoniaand4.3mmt/aofureamakingQAFCOtheworld’slargestsingle-siteproducerofbothammoniaandurea.Thusfar,QAFCOhasbecometheworld’s largestsinglesiteureaproduceraftertheinaugurationofits4thexpansion(QA-FCO-4)inApril2004.WhiletheQAFCO-6projectwillincreasethecompany’sannualproductioncapacityofureato5.6mmt/a.Consequentlytheprojectwillstrengthenthecompany’spo-sitionasakeyplayerintheglobalfertilizermarket.

PETROCHEMICALINDUSTRIES

34

PETROCHEMICALINDUSTRIES

QATAR PETROCHEMICAL COMPANYQatarPetrochemicalCompanyLtd.(QAPCO)isoneoftheMiddleEast’sleadingproducersofethyleneandlow-densitypolyethylene(LDPE),whichismarketedunderthe‘Lotrene’brandname.

QAPCOwas established in 1974 as a joint multinationalventure to utilize the associated and non-associated ethane gasfrompetroleumproductioninlinewiththeindustrializationplanoftheStateofQatar.QAPCOcommencedcommercialproduction in1981andsoonbecamewell established intheglobalmarketforitscommitmenttoqualityandreliability.QAPCOisjointlyownedbyQatarIndustries(IQ)with80%share and TOTAL Petrochemicals of France with 20%share.

Plants, Activities and Line of ProductionQAPCOmanufacturingfacilitiesconsistofanethyleneplantwith a capacity of 720,000 t/a following thebeginningofcommercial production at ethylene plant project EP2 inOctober2007,twoLDPEplantswithatotalannualcapacityof 400,000 t/a and a sulfur plant with an annual ratedcapacityof70,000t/a,aswellasselfsufficientutilitiesplantsandotheroffsiteandauxiliaryfacilities.

DifferentLDPEgradesareavailabletosatisfytherequirementsofmostthermoplasticsprocessingtechniquesandsuitableforapplicationssuchasfilms,pipesandothermajormoldedproductshavingwideusageallovertheworld.

LDPEPlant(3)Theproject isnowunderway,withacapacityof250,000t/a (expandable to 300,000 t/a) at its existingoperationalfacilities located at Mesaieed Industrial City (MIC). TheLDPE-3Projectisforecastedtobecompletedbymid-2012.QAPCO>stotalLDPEproductioncapacityishopedtobeincreasedto650,000t/a.

Major Achievements in 20092009wasanothersuccessfulyearinQAPCO’shistory.Weset new records in productivity and revenue.Operationalandmaintenance excellence was the centerpiece of thissuccessandachievement.

The focus in 2009 was to optimize asset performance.Maintenance utilized a preventive maintenance systemto identify andcorrect equipmentdeficiencies in advanceratherthanreactiveproblemsolving.Thesystemischeckedforoptimumdeploymentofresourcesvis-à-visachievementoftargetedequipmentavailability.

AfterthecommissioningofEP2inthelastquarterof2007,ethyleneplantcapacityhasbeen increased to720,000 t/a.Plantperformancewasexceptional in2008and2009.Ethyleneproductionreachedalevelofover800,000t/awithover110%capacityutilization.LDPEproductionhasalsobeenextremelygoodat413,000t/a,veryclosetorecordfigures.

Inaddition,QAPCOhasreinstateditsidentityasnetethylenesupplier, exporting excess quantities to several majorinternationalcompaniesworldwideaswellassupplyingtheneedsofQVC.

Marketing/Development PlansQAPCOcontinuedin2008toreinforceitsglobalmarketingnetworkthroughtheestablishmentofselfoperatedofficesandwarehousesinallmarketswithstrategicimportancetothecompany.

QAPCO’sglobalmarketingnetworkhasso farembraced26 self operated offices and five regional warehouses.Office locations: four in China (Hong Kong, Shanghai,Beijing,Guangzhou);fourinIndia(Mumbai,Delhi,Chennai& Ahmadabad); two in Pakistan (Karachi, Lahore); andoneeachinEgypt(Cairo),Syria(Tartous),theUAE(Dubai),Lebanon (Beirut), Taiwan (Taipei), Bangladesh, Jordan(Amman), Yemen, Thailand, Malaysia, Vietnam, Australia,Indonesia ,Sri Lanka ,Singapore and The Philippines, aswell as an agent network to serve QAPCO’s customers.Subsequently, and in a strategic drive to become localsuppliers in markets ofstrategicimportance,QAPCOhasbeenactiveinestablishingregional warehouses in Syria, Egypt and one each inGuangzhou,ShanghaiandQingdaoinChina.

New Business DevelopmentIn its drive to offer a larger basket of petrochemical products toitsworldwidecustomers,QAPCOisexpandingtherangeofproducts itmarkets.ThismeansthatQAPCOcurrentlymarkets60%ofQVC’sproductionofEDC,VCMandcausticsoda,apartfrom10%ofQ-Chem1HDPEproduction.

QAPCOispresentlymarketingtheproductsofQ-ChemII(10%)andQATOFIN(50%).

Toshowcase itsproductrangeandcurrentcapabilitiestoworldwide customers, QAPCO regularly participates inregional and international trade fairs and industry-specificexhibitions.

35

QATAR FUEL ADDITIvES COMPANY

Qatar Fuel Additives Company (QAFAC), established in1991, is a joint venture between Industries Qatar (50%),OPICMiddleEastCorporation(20%),InternationalOctaneLimited (15%), and LCY Middle East Corp. (15%). Thecompanywhich commencedoperations in 1999aims tooptimize the utilization of the country’s vast hydrocarbonresourcesthroughtheproductionandexportofmethanolandmethyltertiarybutylether(MTBE).

QAFAC produces and supplies methanol and MTBE to the local, regional and internationalmarkets. Itsmethanolplanthasanannualproductioncapacityof982,350tons,ofwhich750,000tonsisearmarkedforexport.ThebalanceisusedasfeedstockfortheMTBEplantwhichhasanannualproductioncapacityof610,000tons.

ProductionThe year 2009 marked the 10th anniversary ofcommencementof theCompany’soperations. Itwas yetanothersuccessfulyearwithmanyachievements,notableamongstwhichwas themethanol plant’s 100% reliabilityandavailability,recording447daysofcontinuousoperationwithout interruption. The plant achieved a methanolproductionmilestoneof1milliontonsduringtheyear,thehighesteverrecordedinacalendaryear.

TheMTBEplantpostedacommendableproductionfigureof627,000tonsduring2009andachievedareliabilityrateof 97.39%. Included in other successes was the onlinereplacementoftheOleflexCatalystwithoutrequiringaplantshutdown.

MarketingDuring 2009 the Company adopted a new marketingstrategy, acquiring new customers and widening thecustomerbaseinvariousmarketsinternationally.Itisworthnoting that the Company’s entire 2010 production hasalreadybeencontractedforsale.

Health, Safety and EnvironmentTheCompanyisundergoingthefirstsurveillancethirdpartyauditsfortheOHSAS18001OccupationalHealth&SafetyQuality Management System accreditation. During 2009QAFAC chaired the MIC Health, Safety & EnvironmentIndustrial Forum and spearheaded the 2nd Annual MICIndustryTrafficSafetyCampaign.SignificantprogresshasbeenachievedintheGreenbeltProject,whichaimstoutilizethewastewater for irrigationpurposes. Inorder toensureco-existenceofbothindustryandenvironment,QAFAChasinitiated the Leak Detection and Repair (LDAR) Environment Program that will assist in identifying fugitive emissions,pollutantgasesandothersubstances,therebyreducinganynegativeenvironmentaleffects.

36

PETROCHEMICALINDUSTRIES

QATAR vINYL COMPANY (QvC)QatarVinylCompanywasestablishedin1997asalimitedQatari shareholding company. The company wasinaugurated in2001byHHtheEmir. ItsshareholdersareQatar Petroleum (55.2%), QAPCO (31.9%) and Arkema(12.9%).

Operations HighlightsOperationshaveshownthattheplantmaybeoperatedconsistently at loads 27% above hourly design on thechloralkaliside,while50%abovethedesignispossiblefor the VCM plant

MarketingQVCcontinuestopursueitsmarketstrategytosellmostof itsproductsona long-termcontractbasis.Close to75%ofEDCandcausticsodasalesaremadeonalong-termcontractbasisandmorethan85%ofVCMissoldonasimilarbasis.

During2009atotalof134vesselswereshippedwithQVCproducts.DestinationsincludedSouthAfrica,SouthEastAsiaandAustraliaforcausticsoda;IndiaandSouthEastAsiaforEDC;andPakistan,IndiaandAustraliaforVCM.

Health, Safety and Environment QVC operations have passed 4 million safe man-hourssincestartupandcontinuewithnolosttimeinjuriesandno occupational illness. QVC is meeting the standardsas defined in the Environmental Protection Law andthe Consent to Operate as issued by the Ministry ofEnvironment.

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QATAR CHEMICAL COMPANY(Q-CHEM)Q-Chem was established on 16th November 1997 asa joint venture betweenQP (51%) and Chevron PhillipsChemica Company International Qatar Holdings LLC(CPCIQ)(49%).Q-Chem’sworld-classpetrochemicalplantproduceshighdensity polyethylene (HDPE) and 1-hexene (alpha olefin)usingChevronPhillipsChemical’sproprietarytechnologies.TheQChemfacilitybeganoperationsin2003.

The Q-Chem complex in Mesaieed Industrial City iscomprisedofanethyleneunit,apolyethylenefacility,anda1-hexeneunithavingacapacity toproduce inexcessof 500,000 t/a of saleable products. Q-Chem assetsalso include a sulfur recovery and solidification plant, abaggingandstoragewarehouse,anitrogenplant,awatertreatmentplant, a seawater cooling system, dock facilities andvariousadministrativebuildings.

MarketingQ-Chem’s Marketing Strategy and goal is to be thepreferredsupplierinitstargetmarkets.Q-Chemhascomea longwaysince itbeganproductionof itsfirstbrandedMarlexresins,and has established a strong foothold in international markets, including Asia, Africa, Europe and the MiddleEast.

In addition to its strategic location and easy access toexport markets, Q-Chem Marketing enjoys the benefitsof an extensive marketing network, widespread marketrecognition,andanestablished,long-standingclientbase.Q-Chemisnowrecognizedasa leadingPEandhexenesupplierwithconsistentproductqualityandserviceswhichhavebeenwellacceptedbyusersinallregions.In2008,QChem continued to achieve a sold-out position for its entireproductionvolume.

QATAR CHEMICAL COMPANY II LTD. (Q-CHEM II)Q-ChemIIisaQataricompanyownedbyQP(51%)andCPCIQ (49%). ThenewQ-Chem II facility is adjacent totheexistingQ-ChemplantinMesaieed.Thesitewillincludea350,000t/asingletrainhigh-densitypolyethylene(HDPE)plantanda345,000t/anormalalphaolefins(NAO)plant.TheQ-Chem II facilitywill producepolyethyleneproductsused tomanufacturebottles andblow-moldedparts andfilms,aswellasNAOproductsusedinplasticco-monomers,detergents,lubricants,synthetics,drillingfluids,plasticizersandspecialtywaxes.

RAS LAFFAN OLEFINS COMPANY LTD. (RLOC)Ras Laffan Olefins Company Ltd (RLOC) is a Qataricompany, 53.31% owned byQatar Chemical CompanyII Ltd (Q-Chem II), 45.69%ownedbyQatofinCompanyLimited(Q.S.C.)(Qatofin)and1%ownedbyQatarPetroleum(QP).RLOCiscurrentlyconstructingaworld-class1.3mt/aethylenecrackerunitwhichwillbeoperatedbyQ-ChemIIonbehalfofQ-ChemIIandQatofin.

EthyleneproducedbyRLOCwillbetransportedfromRasLaffantoQ-ChemIIandQatofinderivativesunitsinMesaieedvia a 135-kilometer pipeline. InMesaieed, 700,000 t/a ofethylenewillbeallocatedtoQ-ChemIIand600,000t/awillbeallocatedtoQatofin.

QATOFIN PROjECTQatofin,a jointventurebetweenQAPCO (63.5%),TOTALPetrochemicals of France (35.5%) and Qatar Petroleum(1%), has constructed a low linear density polyethylene(LLDPE)facilityof450,000t/a(expandableto600,000t/a)inMesaieed,adjacenttoQAPCO’splant.

TheprojectwasofficiallyinauguratedundertheauspicesofHHSheikhHamadBinKhalifaAl-Thani,theEmirofQatar.The ethylene feed will be supplied from the Ras LaffanCracker (in which Qatofin owns 46% share) through apipelinefromRasLaffantoMesaieed.ThetotalprojectcosttoQatofinoftheLLDPEplantanditsshareinRLOCCrackerisestimatedatUS$1.35billion.

The project will utilize the ethane gas feedstock that willbe made available as a result of further development of the country’s gas resources, combining the interests ofthe existing petrochemical investors in Qatar to developsynergieswithotherventuresatMIC.QatofinwillexportthesurplusethyleneandLLDPEtoworldmarkets.

38

PETROCHEMICALINDUSTRIES

MELAMINE PROjECT

In addition to its focus on boosting fertilizer production,QAFCOhasgoneintonewproductareasandjointventures.InSeptember2004anewurea formaldehydeplantwentinto production, while in 2007 QAFCO commenced theconstruction of aUS$320millionmelamine plant.With aproduction capacity of 60,000 tons per annum the planttakeover isexpectedinthethirdquarterof2010.ThiswillbethelargestmelamineplantintheMiddleEastaswellasoneofthelargestintheworld.

The project is expected to add extra value for the ureaproducedbyQAFCOand isexpectedtoboostQAFCO’sprofitability. The melamine project is owned by QAFCO(60%)andQatarIntermediateIndustriesHoldingCompany(QH)(40%).

SEEF LIMITED

SeefLimitedCompanyhasbeenestablishedinApril2004asajointventurewith80%sharesheldbyQatarPetroleum(QP)and20%byUnitedDevelopmentCompany(UDC)todeliver the vision of His Highness Sheikh Hamad Bin Khalifa AlThani,theEmiroftheStateofQatarintermsofinvolvingtheprivatesector insuchprojects.Theplant is locatedinMesaieed.

ProductsThemainproductisLinearAlkylBenzene(LAB)whichisaningredient in the manufacture of environmentally-friendlydetergents. It is produced at a rate of 100,000 MT peryear.Also,HeavyAlkylBenzene(HAB)isproducedasabyproductatarateof3,600MTperyearinadditiontoNormalParaffinandBenzene.

MarketingTheCompanyhasconsolidateditspositionacrosstheworldthrough amarketing strategy that is basedon short/longtermcontractsasper the requirementofeachcase.OurcurrentcustomersarespreadacrossSouthEastAsia,FarEast,GCC,SouthAfrica,Mediterranean,EuropeandUSA.Wearestrategicallyexploringnewgeographicalaswellasendusesegments.Thishasbeenenhancedbyoursuperiorproductqualitythathasbeenacceptedandappreciatedbytheleadingdetergentproducersintheworld.

Important AchievementsDespitethedifficultiesandchallengesthatthecompanyhasfaceddue to theworld recession,SEEFhasmanagedtoachieveimportantmilestonessuchasthefollowing:

1)Qataris occupy most of the managerial positions andQatarization is supported by senior management.This year the company has achieved a Qataraizationpercentagethatishigherthatwhathasbeenplanned.

2)TheCompanyhasachieved2millionhourofworkwithoutaccidentsasnoaccidentwasrecorded.Themonitoringof industrial operations and its impact on the environment isaprioritythatweundertakewithduecareandrespecttotheecosystem.

3)Theprovisionofhighqualityproductsforcustomers.4)Amarked reduction in the importationofBenzenehas

beenachieved.5)Thecompletionoftheturnaroundshutdownandoverall

maintenance for the plant according to a predetermined timetable and a lesser cost than what has beenestimated.

6)TheCompanyhasbeenabletoexpandthedatabaseofbuyersandincreasethenumberofimportingcountriesinadditiontoofferthedirectdeliveryservicetocustomers.All of the above has contributed significantly to theavoidanceoftheimplicationsoftheworldrecession.

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MIC’s vision is to:❏Beaworldclassindustrialcitywithamajorfocusfor

HydrocarbonindustrialdevelopmentinsouthernQatar❏Beaself-sufficientcommunityprovidingahighquality

of life for all its residents andworkers, withmodernfacilities,a full rangeofservicesandwellmaintained,modern infrastructure

❏Provideavibrant,healthy,cleanandsafeenvironmentinwhichtoliveandwork

MIC’s Mission is to:❏PromoteMesaieedboth locallyand internationallyas

anexcellentwidespectruminvestmentlocation❏Modernize and develop utilities, services and

infrastructure❏ Manage the municipal role in Mesaieed to ensure

clean,orderly, andhygienicpublic facilities, includingrestaurants, parks, recreation facilities, commercialdistricts,beaches,etc

❏Develop a cohesive multi-national community inMesaieed

❏Collaboratewith local industries toplananddevelopgrowthwithintheMICCommunityandIndustrialArea

❏Cooperatewith businesses to develop and upgradetheheavyand light industrialandportareasand theadjacentcommunity

Reasons to Invest in Mesaieed❏Large,wellestablished,24-hourservicedmodernport❏ProximitytoAsianandEuropeanmarkets❏Abundanceofenergyresourcesatcompetitiveprices❏Openexchangeregulations❏ MIC Management encourages and supports joint

ventureinitiativeswithcompetitivelandleaserates

INDUSTRIAL CITIES

MESAIEED INDUSTRIAL CITYMesaieedIndustrialCity(MIC) is locatedapproximately40kmssouthofDoha.MICmanagementwasestablishedin1996asasinglepointauthoritytoprovideone-stopsevicesto all businesses and industries located in Mesaieed, tocreate a strategic land development plan for the Mesaieed region and to provide common port, marine, industrial,community and infrastructure facilities for the city.MIC isalso dedicated to attracting light, medium, and supportindustriestocomplementtheexistinglargerbusinessesandprimarypetrochemicalindustries.

MesaieedIndustrialCityistheleadingintegratedindustrialcityintheStateofQatar.Itisthemajorfocusforthedevelopmentof industrial projects in the fields of petrochemicals,chemical fertilizers,oil refining,naturalgasderivativesandmetallurgical industries, as well as supporting numeroussmallandmediumsizedindustries.MesaieedIndustrialCityis a major economic centre and a major contributor to the economyofQatarwith60%ofthecountry’sGDPflowingthroughitsport.

MIC is home to much of Qatar’s building and construction materialsindustry.TherelocationoftheseindustriestoMICiswellestablishedandbusinesses related to this industryarebeingaccommodatedinanewlight&supportindustrialareawithintheMesaieedregionandprovidedwithcommonfacilitiesandinfrastructure.

The city provides a healthy, clean and safe environment.Professional systemsand staff ensure the safety, securityand availability of integrated social services for residentsandworkers,makingMICanattraction for residents andinvestors.

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MIC Strategic Master PlanMIC has developed a strategic master plan to guide the industrial, community andport development ofMesaieedover the next 25 years. This plan is being used in theexpansion and development of the industrial and portareasinMICaswellasthetown.ItprovidesguidelinesfordevelopmentoftheseareasbasedonnewmarketstudiestomaximizetheutilizationofQatar’snaturalresources,landandinterfacesbetweenindustries

Major Achievements up to the End of 2009❏Expansion of permanent labor accommodation and

related recreation facilities❏ Completion of Phase One of the MIC housing project

(Over1,500accommodationunits)❏ Completion of the construction of MIC International and

Communityschools❏Maximumutilizationofthehazardouswasteanddomestic

wastetreatmentcenterstoserveMICandthecountry❏Allocationoflandformanynewindustrialprojectsinthe

metal,engineering,plastics,chemicalsandconstructionmaterials sectors

❏CompletionoftheQPofficecomplex❏ConstructingofgabbroberthNo.3andQatalumberths

number7Aand7B

Marketing and Development Plans❏Developmentofthelightindustriesareafordownstream

manufacturing and construction material❏Expansionanddevelopmentofthenorthern,centraland

southern areas of MIC port

Major CustomersWiderangeofproductsareproducedwithinMICincluding;base petrochemicals, plastic resins, refined petroleumproducts and steel, as well as finished manufacturedproducts. These are supplied to the local, regional andinternationalmarkets.

Future Development PlansMIC iscontinuouslyconsideringexpansionplans tomeetthe rapid growth and development of its community,industrialandportareasaswellasrelatedfacilities.Majorinfrastructure projects are under design to upgrade the roads,ports,andotherinfrastructurewithinthecityandboththeheavyandlightindustrialareas:❏Roads and infrastructure upgrades and expansion

throughoutthetown❏ Completion of road and infrastructure development and

upgrades in the industrial area❏Beautificationandinfrastructureupgradesofallresidential

area roads❏ Creation of the Ecological Park❏Constructionofadditionalnewlaboraccommodationto

supportthenewgeneralindustriesexpansion❏Allocationoflandformanynewindustrialprojectsinthe

metal,engineering,plastics,chemicalsandconstructionmaterials sectors

❏Developmentofadditionalcommercial,residential,officeandrecreationalfacilitiestoservethegrowingcommunity,including the private sector

❏ConstructionofNewSealineHighwaytoservethepublicleading to Sealine Resort

INDUSTRIAL CITIES

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andfacilitiesprovidedbyRLCinclude:emergencyresponse,medical,fire,safety,environmentalservices,utilities,wastemanagementandsewagetreatment.

Major CustomersRLIChostsavarietyofindustries.❏LNGplants includeQatargas I, II and III (6 trains) and

RasGas I, II and III (6 trains).Qatargas IV (Train7)andRasGasIII(train7)arescheduledforcompletionin2010

❏GTLplantsincludeOryxGTLwhichisalreadyoperationalandPearlGTL,aShellCorporationproject,whichisunderconstructionandexpectedtocomeonstreamin2011

❏Petrochemicals and refinery plants include Ras LaffanOlefinsCompanyLtd(RLOC)andLaffanRefinery.Bothareexpectedtobecomeoperationalearly2010

❏Gas projects: Al-Khaleej Gas Project (AKG I) andDolphinareoperational,.AKGIIisexpectedtobecomeoperational in early 2010 while the start-up date forBarzanGashasbeensetfor2014

❏Desalinated water and electricity projects: Ras LaffanPower Company (RLPC) produces 750megawatts ofelectricityand40milliongallonsofpotablewaterperday.QPowerhasacapacitytoproduce1,025megawattsofelectricity and60milliongallonsofwaterperday.RasGirtasPowerCompany is expected to produce 2,730megawattsofelectricityand63milliongallonsofwaterperdayuponcompletionin2011

❏Relatedgreenindustries:QatarSolarTechnologies’newpolysiliconplantisintheplanninganddesignphase

RAS LAFFAN INDUSTRIAL CITYRasLaffanIndustrialCity(RLIC)wasinauguratedinFebruary1997byHHtheEmirSheikhHamadBinKhalifaAlThaniwith the mandate to govern and administer the city onbehalfofQatarPetroleum.RasLaffanIndustrialCityisthe294sqkmbase(includingtheareaenclosedbytheport)for the onshore activities of most of the current and future industries based on extraction from the North Field withitsprovenreservesof900trillioncubicfeetofnaturalgas.These industries include liquefiednatural gas (LNG), gas-to-liquids (GTL) projects, gas processing facilities, theirderivativeandsupportingprojects,andfuturedownstreamprojects.RLICisoneoftheStateofQatar’smoststrategicdevelopmentsanditisfastbecomingtheenergycapitaloftheworld.Withinadecade,RLIChasbecomeoneoftheworld’sbiggestproducersandexportersofLNG.Duetoitslocationontheinternationalmaritimeshippingroute,energyproductsfromRLICcanwithoutdifficultyreachmarketsallovertheworld.

Main ActivitiesTheQatarPetroleumDirectorate,RasLaffanCity (RLC) isresponsible for developing, operating and regulating theindustrial city. It provides infrastructure and services toenable its resident industries and other customers to operate effectively.Thedeep-waterportandtheCommonSeawaterFacility (CSF) are good examples of the major commoninfrastructurefacilitiesprovided.Otheressentialservices

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Major AchievementsThereweresomeextraordinarycontributionsinallspheresofRLCactivitiesduring thepast year.Listedbelowareafewexamples:

❏Our role as enabler is appreciated and acknowledgedbyend-usersatvariousforumsandweareincreasinglyreceiving international recognition. For example, on 8October 2009RLC received threeSeatrade awards inDubai, more than any other participating organization,namely: The Port Authority Award (also in 2007), TheEnvironmentProtectionAward,andTheEnergy:OilandGasAward(alsoin2008).RLCalsoreceivedtheLloyd’sListPortInfrastructureawardduring2009

❏RLC was recertified as ISO 9001:2008 and ISO14001:2004compliantbyBureauVeritas

❏Dredging, land reclamation and the construction ofbreakwaters of the new port expansion project werecompleted

❏RLC maintained an overall facility availability of 99.94during2009

❏ThetermsofreferenceoftheRLICCommunitycharter,basedontheQatar2030vision,hasbeenfinalizedandsigned by all concerned directors In line with one ofRLC’sstrategicobjectives,RLCmanagedtoreducethepercentagevacanciesinRLCbyafurther5.7percentagepointsto11.2%during2009.TheWestSupportServiceandIndustrialAreaMasterPlanhasbeencompleted.

Development PlansMoreprovengasreserves,increasedLNGtraincapacity,thecommercialviabilityofGTLproducts,andopportunitiestoincreaseefficiencybyprovidingmoresharedservicesandutilitiesnecessitateda reviewof theMasterPlan in2004.Therevisedplanidentifiedamixofgas-basedanddown-stream industries and projected infrastructure and logistics requirements.RLC is currently implementing the updatedMasterPlan.

Future Expansion Plans❏Themega port expansion project is on schedule. The

next milestone is the completion of berths and portinfrastructure,duetobecompletedin2011

❏Developmentoftheshiprepairyard(Nakilat)atRLCPortisscheduledforcompletionin2010

❏CSFexpansion:TheCSFcapacityhas increased from308,000to833,000cubicmetersofseawaterperhourafter completion of Phase II Category I of this project.Phase II Category II is expected to be completed in2010

❏TheRasLaffanEmergencyandSafetyCollege,whichisajointprojectwithTexasEngineeringExtensionService(TEEX) of Texas A & M University, is scheduled forcompletionin2011

❏Site development for the Westside Support IndustriesandSupportServices(WSSA)PhaseIIanddevelopmentofutilitiesforWSSAPhasesIandIIhascommenced

❏Expansion of the RLIC road network andLandscapingPhasesIIandIIIwillcontinueuntil2012

INDUSTRIAL CITIES

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ThebusinessgrowthoftheCompanyisasfollows:

Company OperationsGulfHelicoptershasa fleetof thirtyonehelicopters in-cludingtwoS-92,sevenAW139,sixteenBell412s,fiveBell212s,andoneBell206.GHCoffersservicessuchasVVIPTransport,Offshoresupport,OnshoreTransport,Seismic support, VFR & IFR, Load lifting, Photo flightsandHelicopterEmergencyMedicalServices.

Future PlansGHC is one of the stakeholders in the development of Al KhorAirfieldas‘AerospaceCity’andwillbemovingintothenewfacilityinafewyears’time.

GHC’soperationsareexpectedtoincreasemanifoldwiththe booming development inQatarwith theOil &Gasprojectexpansions.

GHCconfirmstomodernizeitsfleetbyaddingmoreAW139s,tohavemorethan10AW139byyear2010.

GHC is pursuing more international contracts due to its fleetexpansion.

GHCisexploringopportunitiestoexpanditsoperationalbasestonewgeographicalareasandalsotoexpanditsscopeofservices.

GULF HELICOPTERS COMPANY

GulfHelicoptersCompany(GHC) isowned100%byGulfInternationalServices(GIS),aQatarJointStockCompanyofwhichQPisthelargestshareholder.TheCompany,incorpo-ratedin1970,hasgrowntremendouslysinceitsacquisitionbyQPin1998andcurrentlyisoneoftheleadingHelicopterOperatorsintheMiddleEastregionwithoperationsextend-ingtoIndia,YemenandLibya.GHCoperatesunderQCAROps3andJAR145regulations,EASAandFAAandisanISO9001-2008certifiedCompany.

Company History:Thefollowingchronologicalsummaryenumeratesthehis-toryoftheCompanysinceitsinception:

OTHER INDUSTRIESAND SUPPORTING SERvICES

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2009 HighlightsQatarSteelisfullycommittedtoensureitsgrowthplansaimedatproducingsixmilliontonsofsteelannuallyduringthe next ten years are on track. Growth plans includeincreasingproductioncapacityandenhancingbackwardintegration through overseas joint venture projects in iron orepelletizationsectorforensuringsteadysupplyofrawmaterialsneededforlargervolumesoffinishedproducts.

Qatar Steel joint venture projects in Bahrain – United Stainless Steel Company (USCO) and Gulf IndustrialInvestmentCompany(GIIC)werecompletedandcommissioningandstart up activities were begun. Commercial productionofcoldrolledstainlesssteelsheetsandpelletsfromnewfacilitywillcommenceinthefirsthalfof2010.

QatarSteel’sjointventureaffiliateUnitedSteelCompany(SULB) under Gulf United Steel Holding Company(FOULATH) selected Kobe Steel as the EPC contractor for a new DR Plant and the consortium of SMS andSamsungforanewMeltShopandRollingMill.Contractswillbeawardedinthefirstquarterof2010.

Additionally Qatar Steel has signed a Memorandumof Understanding with South Steel Company of SaudiArabiatosell930KMTofDRI/HBIannually.QatarSteelisalsoplanningtosetupanewjointventurewithSouthSteelCompanyofSaudiArabiainthenearfuture.

OTHER INDUSTRIESAND SUPPORTING SERvICES

QATAR STEEL COMPANY (QSC)Qatar Steel continued to perform successfully in 2009,followingexcellentperformanceoftheearlieryears.DuringtheyearQatarSteelcommissionedanewBarMillinDubaiwithacapacityof300KMT(KMT=’000MT)perannumandcommenced commercial production in September 2009.ThecompanyhasalsobegunworkonothermajorprojectsincludingrevampingoftwoofitsElectricArcFurnacesandupgradingofitsoldDRIPlant.

Totalproductionduring2009reached2,096KMTofDRI/HBI,1,473KMTofmoltensteel,1,448KMTofbillets,1,566KMTofbarsand120KMTofCoils.Totalshipmentsduringtheyearwere76KMTofbillets,682KMTDRI/HBI,1,600KMTofreinforcingsteelbarsand106KMTofCoils.

QatarSteel’sconsolidatednetincomewasQR1,768millionin2009comparedtoQR1,020millionin2008.

QatarSteeliscurrentlyinitiatinganewprojectforrevampingof its Electric Arc Furnaces (EF) and Continuous Casting (CC)unitstoincreaseproductioncapacityto2.2milliontonsofBilletsannually.ThiswillensurethatrequirementsofthetwobarmillsatMesaieedandthewirerodandbarmillsinDubaiarefullymet.

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Productsaretested inQPPCqualitycontroldepartment.Ananalysiscertificatedetailingthecomposition,dimensionandmechanicalpropertiesoftheproductisprovidedwitheverydelivery.

SafetydatasheetsandCertificateofConformityaresup-plieduponrequest.

Certifiedunder ISO9001:2000QualityManagementSys-tem,productsareextrudedinmodernblowfilmlines.

Products Thecompanyproducesthefollowingproducts:

❏FFS(form,fillandseal)film❏ Shrinkable hood❏Shrinkablefilm❏Constructionfoil(polythenesheet)❏Polyethylenesleeving❏Greenhouseandagriculturalfilm❏ Top open bags❏Generalpurposefilm❏Heavydutytrashbags

Expansion NewsKeeping the same unparalleled product standard since the inceptionofQPPC,thecompanymaintainsitsstatusastheleadingplasticconverterintheregion.

Concurrent to the opening ofQatofin andQ-Chem2 aswell as in anticipation ofQAPCOLDPE3project,QPPCupgradedduring2009itslasttwomonoextrusionlinestoco-extrusionlines.Thisispartofthegrowthstrategybeingimplementedbythecompanyinmeetingtheincreasingde-mandofpolyethylenebags/filmsintheregion.

QATAR PLASTIC PRODUCTS COMPANYQatarPlasticProductsCompany(QPPC)wasestablishedon 19th September 1998. Commercial production com-menced inAugust2000andwasofficially inauguratedbyHisExcellencyAbdullahBinHamadAlAttiyahon21No-vember2000.

Around90%ofproductionisbeingsoldtothelocalmarketwhile thebalance ismarketed inotherGulfcountriesandinEurope.

TheproductionfacilityislocatedatMesaieedIndustrialCity,40kmssouthofDoha.

ThecompanyisequallysharedbetweenQatarPetrochemi-cal Company (QAPCO), Qatar Industrial ManufacturingCompany(QIMCO)andFEBOs.p.a.ofItaly.

Main ActivitiesQPPCisproducingplasticfilmforindustrialpackagingusingblowextrusionprocess.

Alloperationsarecontrolledbyasophisticatedcomputer-izedsystemthatautomaticallychecksthequalityofthefilm.Theproductscanbeproducedfromdifferentkindofpoly-mertosatisfycustomerrequirements.PrintingisdoneusingFlexographicprinting linesupto6-colours,whichensuresexcellentqualityofprinting.

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willcontinueastestingandtraininggiveswaytooperations.Newcellswillcomeon-linethroughout2010,reachingfullaluminiumproductioncapacityof585,000tonneswhenall704cellsareinoperationbyfourthquarter2010

EnvironmentQatalum’s state of the art technology ensures top-classperformance, and Qatalum’s technology ensures thatthe plant is the most productive and operates with thelowestenvironmentalimpactintheindustry.Hydro’shighlyenergyefficientproprietaryHAL300technologyforaluminumreduction boosts productivity and sets new standardsin environmental performance by reducing the carbonfootprintandspotlightingwastemanagementandemissionreduction.Processgassesfromthereductionprocesswillgothroughdryandwetscrubbinginfumetreatmentplantsto ensure that emissions meet world quality standards,makingQatalumoneofthemostenvironmentallyadvancedprimaryproductionplantsintheworld.

OTHER INDUSTRIESAND SUPPORTING SERvICES

QATAR ALUMINIUM (QATALUM)Qatar Aluminium (Qatalum) is a 50-50 joint venture byQatarPetroleumandNorwegiancompanyNorskHydro.The greenfield aluminum smelter in Mesaieed IndustrialCitywillbefullyoperational in2010. Itwillbethe largestaluminum smelter ever to be built in one phase, withthe ability to produce 585,000 tons of premium-qualityaluminumperannum.Qatalum is acomplex facility thatincludes a carbon plant, a state-of-the-art Casthouseproducing value added aluminum products such as extrusion ingots, foundryalloysandstandard ingots thatmeetthemoststringentqualitystandardsofthemarket.Qatalum’sconfigurationalso includesaportandstoragefacilitiestohandletheimportsofalumina,cokeandpitch,aswellasacaptivepowerplantwithacapacityof1,350megawattssupplyingallelectricityneeds.QatarPetroleumwillsupplyapproximately200millionstandardcubicfeetofnaturalgasperdaytothePowerPlant.

MilestonesOn December 4, 2009 Qatalum casted its first batch offoundry alloy ingots from re-melt. The first container offoundryalloy ingotswereshipped to thecustomeron18December-Qatar’sNationalDay.Twodayslater,Qatalum’sfirstelectrolysiscell startedproductionof liquidaluminiummetal. This marked the historical beginning of aluminiumexports from the State of Qatar, confirming Qatalum’sabilitytodeliveritsproductontime,withinbudgetandwithan excellent environmental and safety standard. The firstextrusion ingot line is expected to start operation in thebeginningofJanuary2010,andtheremainingproductionlines will be completed and handed over to QatalumOperationsinspring2010.Constructionwork

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QATAR PETROLEUM INTERNATIONAL (QPI)Qatar Petroleum International (QPI) has been established tomakestrategiccommercialinvestmentsacrosstheenergyvaluechainaroundtheworldandiscurrently100%ownedbyQatarPetroleum(QP).

QPI currently manages a multibillion dollar portfolio ofinvestments including, but not limited to: upstream, gas& power, refining/petrochemicals, and other midstream/downstream activities. The Company participates in itsinvestments alongside a group of the most reputable multinational and national energy companies, in bothacquisitionsandgreenfield/brownfieldprojects.

2009 Activities❏ Investment (20%) in two blocks as a non-operator in

an exploration project in Mauritania with TOTAL E&PMauritaniaasoperator.Seismicanddrillingstudieshavebeencompleted,anddrillingcommencedin2009;

❏Evaluations and pre-feasibility studies supporting a24.5% equity investment in a potential multi-billiondollarpetrochemicalandrefinerycomplexinChinawithPetroChina and Shell China have been completed,and Pre-FEED studies now underway. Also two otherPetrochemical Projects

❏ InvestedinQPI&ShellPetrochemicals(Singapore)Pte.Ltd(QSPS),ajointventurewithShellholdinginterestsinanolefinsplantandpolymerplantinSingapore;

❏ Continued to advance the Long Son Petrochemical Project,apetrochemicaljointventurewithaconsortiumincludingSCG,inVietnam;

❏Submittedbids,alongwithMarubeniGas&Power,ChubuElectric, and Qatar Electricity and Water Corporation(QEWC), for two independent power projects (IPPs) inOman;

❏ Memoranda of Understanding have been signed around the globe particularlywith international and national oilcompanies and governments to ensure development of potentialinvestmentopportunities;

❏Studiestobuildpowerplants-continuetoprogress in2009;

❏QPIcontinuestobuildateamofpeoplewhowillactivelyevaluateinvestmentopportunitiesinoilandgas;and

❏Current QP interests in LNG terminals (South Hook,Adriatic and Golden Pass) continue to transition to the QPIportfolio.

Future PlansQPI will continue to explore, evaluate and invest instrategically aligned projects around the globe and buildits team to execute, maintain, and grow its successfulinvestmentportfolio.

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OTHER INDUSTRIESAND SUPPORTING SERvICES

GULF DRILLING INTERNATIONALEstablishedinMay2004asthefirstoffshoreandonshoredrillingserviceproviderinQatar.GulfDrillingInternational(GDI) specializes in the provision of contract land and offshore drilling services to oil and gas exploration andproductioncompanies.

GDIwasoriginallyformedasajointventurebetweenQatarPetroleumandJapanDrillingCo.Ltdwithapaid-upcapitalofUS$103.2million.ThesharesofQP,comprising70%ownership inGDI,were transferred toGulf InternationalServicesQSC(GIS)effective12February2008.

GDIisagrowth-orientedcompany.From2004to2009,GDI’s rig fleet has grown fromone to nine rigs and itsworkforcefrom100toover800.Today,itsstate-of-the-artrigfleetconsistsoffiveoffshorejack-uprigsandfourlandrigs.

GDI holds 100% of the onshore rig market share and29% of the offshore rig market. The company aspiresto increase its offshore market share and diversify itsbusinessinthefuture,whenopportunitiespresent.

GDI’s Achievements GDI had its most profitable year ever in 2009 postingrevenuesofQR988.5millioncomparedtoQR839.4millionin2008foranincreaseof18%.Netincomein2009alsogrew toQR423.7million compared toQR326.5millionin 2008 for an increase of 30%. Theprofitability of thecompanyisalsoincreasing,withnet incomeamountingto43%ofrevenuesin2009comparedto39%in2008.

GDI also achieved its target of having full utilization of all its rigs throughout 2009 and had its lowest recordabledowntimesinceinception.ClientsatisfactionwithGDI’sperformancecontinuestorise.

GDI is holdingmultiple ISO certifications, including ISO9001andISO140001,andhasbeenawardedOHSAS18001,whichisacertificationforQuality,theEnvironmentandHealthandSafety.

GDI’s FutureGDI has laid a solid foundation for future growth andprofitability. With improved drilling performance andimplementation of numerous system enhancements,GDI haspositioned itself tobe a successful, long termplayerinthecompetitivedrillingrigservicesmarket,bothinQatarandregionally.GDIisalsolookingtodiversifyintocomplimentary linesofbusiness involving lift boatsandjack-upbarges,usingthesamebusinessmodelthathasproventobesuccessfulforitsdrillingrigs.

FINANCIAL STATEMENTS

Qatar PetroleumSummarized Consolidated

Financial Statements31December2009

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Qatar PetroleumConsolidated Income StatementYearended31December2009

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Qatar PetroleumConsolidated Balance SheetAt31December2009

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Qatar PetroleumConsolidatedCashFlowStatementYearended31December2009

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Qatar PetroleumConsolidatedStatementsofChangesinEquityAt31December2009