Introducing the GGFR Data Tool in Qatar Fran ç ois-R é gis Mouton, Adviser

1. Gas Flaring Reduction Workshp Doha, Oct 3, 2005 Introducing the GGFR Data Tool in Qatar François-Régis Mouton, Adviser Aysha Ferozie, Consultant Hager Ben-Mahmoud, Consultant, Martyn Howells, Consultant

2. Agenda • GGFR Overview • The Voluntary Standard for Global Gas Flaring and Reduction • Data Tool Introduction and Training • An Introduction • Technical Specification • Information Flow • Information Flow and User Roles • Demonstration and Training • GGFR Data Tool: Treatment of CO2 in Flaring and Venting Volumes – A Comment • Wrap Up

3. Global Gas Flaring & Reduction (GGFR) Overview

4. Background of Global Flaring • Global flaring and venting level over 100 bcm/year, similar to: • Annual gas consumption of Italy and France combined; • >10 percent of committed emission reductions by developed countries under the Kyoto Protocol for the period 2008-2012. • 80% of global venting and flaring occurs in fewer than 15 countries • Reliability of available data varies widely • Global level has stayed constant for the last 20 years

5. Need for a forum enabling discussions between stakeholders Why constant global flaring levels of over 100 BCM per year ? Governments and companies have had significant success in reducing flared gas, with continued major investments in reduction projects, but Two key factors limit the global impact of these efforts: • Global oil productionincrease leads to associated gas production increase, offsetting efforts to reduce gas flaring • Development of gas markets, gas infrastructure, and flaring reduction projects often requires collaborative rather than individual action

6. Access to 80% of the sources of global flaring Collaborative Action: GGFR • August 2002 : GGFR Partnership was formed at the World Summit on Sustainable Development in Johannesburg • GGFR Objective : to support governments and the petroleum industry in their efforts to reduce flaring and venting • A growing partnership including governments, state-owned and IOCs, OPEC, and the WBG

7. Current GGFR Public and Private Partners Countries/NOCs IOCs Algeria (Sonatrach) BP Angola ChevronTexaco Cameroon (SNH) ENI Chad ExxonMobil Ecuador Norsk Hydro Equatorial Guinea Shell Indonesia Statoil Khanty Mansiisk (Russia) Total Nigeria Marathon Oil Kazakhstan Donors Multilateral Organizations Canada The World Bank Norway OPEC UK (Foreign Commonwealth Office) USA

8. Integrated Approach to Flare Reduction Global Venting and Flaring Reduction Voluntary Standard Best practices in 40 countries Standards Regulations Flaring and Venting Reduction Activities Commercialization Carbon Credits Associated Gas Recovery Plan & Country Implementation Plan PINs and PDDs

9. The Voluntary Standard for Global Gas Flaring and Venting Reduction

10. The Standard • In May 2004, 2nd International GGFR Conference in Algiers : GGFR announced the “Global Gas Venting and Flaring Reduction Voluntary Standard” • To provide framework for governments, companies, and other key stakeholders to consult and take collaborative/complementary actions Expand project boundaries to reduce barriers to associated gas utilization • To encourage an integrated approach, including market and infrastructure development, commercialization, legal and fiscal regulations, carbon credits; • To achieve global applicability and impact, by allowing for flexibility to local conditions, balancing ambitious timescale with realistic constraints.

11. Key Concepts of the Standard (1) Initial Goal (focuses on large sources):“No more continuous venting or flaring”unless no feasible alternative • Voluntary and based on financial performance rather than prescriptive • Collaborative action • Options to enhance feasibility of associated gas utilization (“tool box”) • Public reporting - self sustaining

12. Key Concepts of the Standard (2) • New projects flaring and venting reduction: 1/2005 • Existing facilities ventingreduction: 1/2006-8 Associated Gas Recovery Plans for Producers • Within project boundaries : 1/2006 • With expanded project boundaries 1/2007 Country Implementation Plan for Govts : 1/2006-7 Existing facilities flaring reduction • Within operational project boundaries : 1/2010 • With expanded project boundaries : 1/2011 • Deadlines are adjusted for date of entry

13. Key Concepts of the Standard (3) Ultimate Goal : long term continuous improvement • Minimize continuous and non continuous flaring • Regular review of remaining flaring and venting • Public reporting

14. Adoption of the Standard Adoption of the Global Gas Venting and Flaring Reduction Voluntary Standard means that the partners: • Endorse the principles set forth in the Standard as outlined in this presentation • Support collaboration with other stakeholders toward the utilization of associated gas and the reduction of flaring and venting • Agree to publish flaring and venting data, through the government, for transparency

15. Background and Objective Introducing the Data Tool

16. Flaring Data Reporting Tool It is essential that data ownership remains with the respective governments GGFR is NOT the flare police Objective : • To provide a standardized approach for data gathering, storage and reporting for use by the governments of countries that flare

17. Public Reporting is Part of Standard Roll-Out There is a need to • better understand vented and flared gas volumes on both country and company specific bases, • track actual flaring reduction versus forecasts • gather consistent data

18. Standard ImplementationFlaring Data Reporting Tool • Voluntary Standard consultants requested to propose options for data gathering tool • Three options considered • A Microsoft (MS) Excel spreadsheet tool • A Microsoft (MS) Access database tool • A web-based tool • Web Based Option selected as it is simple to use, administer and maintain.

19. Publishing Flaring Data Flaring Data Reporting Tool • Description: The web-based tool is designed to be simple to use, administer and maintain. • Tool availability: It is being introduced initially in 3 countries. Roll-out will be in Q1 2006 • Next step: Launch the tool in all GGFR partner countries in Q2 2006, for reporting of 2005 venting and flaring activities

20. Key Features GGFR Data Tool

22. Flaring Data Reporting Tool GGFR Data Tool Site: Address: • Main test site address: wb.withrownet.com • Country site address: wb.withrownet.com/(country name) Key Features: • Fully independent Country databases • Common master database for report collection, password controlled for database administrator • Tool user login with password is required to enter site, and is verified at each page

23. Flaring Data Reporting Tool Key Features (Continued): • Tool user access granted based on role (database administrator, country administrator, data approver, data inputer) • User menu tailored to each role • Report entry/edit restricted to data inputer • Report approval/rejection by data approver • Report release, or withdrawal of release, by country administrator • Public access to aggregate released data only

24. User Roles and Information Flow GGFR Data Tool

25. Flaring Data Reporting Tool • Country Ownership: Country Administrator (CA). Will usually be the NOC or regulatory authority. Controls, accesses and publishes relevant data • Data Input and validation: Input coordinator (RED) and approver (RAP). Will both usually be Asset operators. • Website Support: Data Base Administrator (DA). By the World Bank. • Reporting: Web users (NGOs, Multilateral organizations, universities, press, general public…)

26. Flaring Data Reporting Tool • Country Administrator (CA) : « Mastermind » • Defines the hydrocarbon assets and their operators • % participation by company (not mandatory) • Defines list of sub asset (in conjunction with operators) • Defines the users list, login and initial password • Defines the data base rules (timing, reporting frequency, forecast years, sending reminders, access types/rights to reports, % participation…) • Releases (final approval) for dissemination

27. Flaring Data Reporting Tool • Responsible for Entering Data (RED): • Responsible to collect data • Input data per agreed sub asset (actuals and forecasts) • Correction of the data on request of the RAP

28. Flaring Data Reporting Tool • Responsible for Asset Approval (RAP) : • Responsible for one or more asset(s) • Takes Corporate Responsibility vis-à-vis Country Administrator (CA) for data quality and timing. Validates or rejects RED’s data input • Cannot make any changes to the data but, if rejects data, informs the RED together with the reason why

29. Government country producing assets matrix Operators IOCs NOC Local Players flaring data input Country Owned Database Subject toGovt Approval flaring data released Users General Public Government Oil and Gas Industry Country Administrator (CA) Information Flow Data Approver (RAP) Data Inputer (RED)

30. IT Specifications

31. Flaring Data Reporting Tool Server Hardware/Site • Dedicated Server: 3mhz processor, 512mb RAM, 80gb Raid 1 storage • Unlimited bandwidth on redundant T-3 connections • 72 hours back-up power supply w/21 days back-up generator • Located in biometric entry controlled, hardened, site • Nightly full rotating 10-day backup • Weekly disaster recovery backups Server Software • Window Advanced Server 2000 • IIS 5.x • SQL Server 2000

32. Security / Confidentiality • Web Server and Database Server reside in a Private Network • A Hardware Firewall separates the Private Network from the Public Network (Internet) • Public Network READ ONLY access to the website flows through public port in the Firewall (see next slide) • Information stored on the Database Server is accessed by the Web Server on the Private Network • Public Network access to the Database Server in not possible

33. Security / Confidentiality • Virus/Spyware/Malware scanners run constantly on both the Web Server and Database Server to detect and block malicious intrusions • Critical Operating System updates are applied immediately as published • Each country’s data is stored in a separate database that is username/password controlled • GGFR Tool Users may only access their own country’s website • Country Administrator controls user access to asset data

34. Firewall Protected Private Network

35. Demonstration and Training Syndicate Session GGFR Data Tool

36. GGFR Data Tool Proposed enhancements to the Data Tool

37. Proposed enhancements to the Data Tool Flaring natural gas • The mass of CO2 emitted when a quantity of natural gas is burned is determined by it’s composition (essentially it’s carbon content) • Natural gas is composed of: Methane, Ethane, Propane … etc, plus sometimes CO2 and N2 • The mass of CO2 emitted when burning gases of specific hydrocarbon compositions can be calculated • These calculated emissions can be correlated with the gas’s density, which is also largely determined by the carbon content

38. Proposed enhancements to the Data Tool CO2 emitted, kg per m3 gas burned 3.1 2.9 2.7 2.5 2.34 Methane + Ethane 2.3 Methane + Propane Methane + Ethane + Propane 2.1 ‘Typical’ gas 1.9 1.7 1.5 0.6 0.7 0.8 0.9 1.0 Hydrocarbon gas density kg CO2 emitted per m3 gas burned = 3.633 x hydrocarbon gas density - 0.772

39. Proposed enhancements to the Data Tool Estimating CO2 emissions for flared gas • The Data Tool currently assumes a ‘typical’ gas which, when burned, emits 2.34 kg CO2 per m3 of hydrocarbon gas • The enhanced Data Tool will allow input of the gas density, and will use the correlation to estimate the mass of CO2 emitted when it is burned. • If no density is input, the Data Tool will default to 2.34 kg CO2 per m3 of gas burned

40. Proposed enhancements to the Data Tool Venting of natural gas • For vented, or un-burned, gas the important parameter is its Global Warming Potential (GWP) • GWP is a measure of how many times more impact a mass of gas has on global warming than the same mass of CO2. GWP is expressed in units of “kgCO2 equivalent”.

41. Proposed enhancements to the Data Tool Venting vs Flaring for the ‘typical’ gas in the current Data Tool • The gas has a density of 0.85 kg/m3, but otherwise the properties of methane which has a GWP of 21. • 1 m3 of the gas has a mass of 0.85 kg and therefore has a GWP of 0.85 x 21 = 17.85 kgCO2 eq. • When 1 m3 of the gas is burned, it generates 2.34 kg of CO2 • Venting the gas is therefore 17.85 / 2.34 = 7.6 times as detrimental to the environment as burning the same volume

42. Proposed enhancements to the Data Tool Estimating the GWP of vented and un-burned gas • For a vented or un-burned hydrocarbon gas, the GWP is determined by its composition • The main components of a typical natural gas have GWPs of: Methane 21.0 Propane 3.0 Ethane 8.4 CO2 1.0 • The GWP of gases with specific hydrocarbon compositions can be calculated, and correlated with the calculated density • The enhanced Data Tool will use the correlation to estimate the GWP of the gas when it is vented or un-burned • If no density is input, the Data Tool will default to a GWP of 16 kg CO2 eq per m3 of gas

43. Proposed enhancements to the Data Tool Global Warming Potential (GWP) , kg CO2 eq 22 GasGWP Methane 21.0 Ethane 8.4 Propane 3.0 20 18 16 Methane + Ethane 14 Methane + Propane Methane + Ethane + Propane 12 10 0.6 0.7 0.8 0.9 1.0 1.1 Hydrocarbon gas Density GWP (relative to CO2) = 38.2 - 26.33 x hydrocarbon gas density

44. Proposed enhancements to the Data Tool Adjustment for CO2 in the natural gas • Many gases contain significant levels of naturally occurring CO2 • The enhanced Data Tool will allow input of the %(by volume) of CO2in the natural gas. If no value is input for CO2 content, the default will be 0% • The Data Tool will correct the calculated emissions from both flaring and venting (including gas unburned by the flare) to take account of the naturally occurring CO2