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Dolphin posts record $1.98b profit on higher gas output

Dolphin Energy Limited, which produces, processes and runs a gas pipeline network through Qatar, the UAE and Oman, on Sunday reported a record net profit of $1.987 billion in 2011, the company’s highest single-year profitability to date.

The energy company reported 25 per cent surge in its revenues to $2.353 billion in financial year 2011, up against $1.874 billion in the same period a year ago.

“Dolphin produced and exported 730 billion standard cubic feet or bscf of lean gas for the second consecutive year. This is the maximum allowable annual production limit for Dolphin Energy, as outlined in the Development and Production Sharing Agreement (DPSA),” says the Sustainability Report for 2011 titled “Creating Sustainable Results with Positive Energy,” issued on Sunday.

The natural gas is collected from the two undersea wells from where it is transported to Ras Lafan gas processing facilities, the largest of its kind in the world. After travelling a 248 kilometers distance, the undersea pipeline enters the UAE shores at Taweelah in Abu Dhabi and heads straight to Fujairah, to fuel electric power plants there. From Fujairah gas is put into a local pipeline to Al Ain through for its exports to Oman.

In Abu Dhabi and Dubai, Dolphin’s gas is supplied through an existing pipeline network.

In 2011, it delivered 812,000 billion BTU of gas to its customers in the UAE and Oman up against 790,853 BTU in 2010, according to the sustainability report.

According to report, Dolphin achieved a cumulative production milestone of 3 trillion standard cubic feet of natural gas since production commencement.

Abu Dhabi Headquartered Dolphin Energy is major strategic initiative, which involves the production and processing of natural gas from Qatar’s North Field, which is transported by a sub-sea export pipeline to the UAE, which began in July 2007.

The gas is supplied to long term customers Abu Dhabi Water & Electricity Company, Dubai Supply Authority or DUSUP and Oman Oil Company or OOC, under a 25-years gas supply agreement.

Dolphin Energy is owned 51 percent by Mubadala Development Company, on behalf of the Government of Abu Dhabi with 24.5 percent each by Total of France and Occidental Petroleum of the US.

The Sustainability Report has been prepared in conjunction with the Global Reporting Initiative (GRI), which has classified the report as ‘A/GRI Checked’, indicating high levels of transparency and disclosure. Dolphin Energy’s CEO, Ahmed Ali Al Sayegh said: “Our focus is on how we can maximise positive economic, social and environmental impacts.” The 2011 report focuses on performance split across four important areas that comprise Dolphin Energy’s sustainability framework— sustainability management, economic sustainability, social sustainability and environmental sustainability. The framework captures sixteen ‘sustainability issues’ upon which the company’s performance has been measured.

The flaring and greenhouse gas emissions dropped 26 per cent and 4.7 per cent respectively, according to the report.

Dolphin Energy’s flaring rates rank among the best attained by all Qatar oil and gas companies. Flaring accounts for 10 per cent of Dolphin Energy’s GHG emissions.

In 2011, Dolphin Energy reduced its flaring by 33 per cent; this significant reduction resulted in record-low flaring figures since operations began in 2008. During normal operations, Dolphin Energy achieved an average flaring output below 0.3 per cent, onshore, which is below the limit targeted by Qatar Petroleum (QP) and the Ministry of Environment.

— haseeb@khaleejtimes.com