JCCP NEWS
Newsletter of Japan Cooperation Center, Petroleum

TopicsNo. 105
October 2009

Mr. Sase, Executive Directorof JCCP, Visits China,
Saudi Arabia, and Bahrain

In this issue:
TopicsVisits to China, Saudi Arabia, andBahrain by Mr. Sase
1
Completion Ceremony in UAE

6Signing Ceremony in Saudi Arabia 9
FY2009 JCCP Program Seminar

11

Interviews with
JCCP Counterparts

13

Mr. Masataka Sase, Executive Director of JCCP, visited China,
Saudi Arabia, and Bahrain in April and June 2009, to hold policy
dialogues with the top management of national oil companies in thosecountries, as part of JCCP’s effort to promote mutual exchanges,
understanding, and cooperation with oil-producing countries.

Personnel Exchange Programs“Energy Saving in the Refinery”(TAKREER)

18

JCCP Regular Courses CompletedApril – July 200922
FY2010 JCCP Course Schedule

24

Technical Cooperation
The 9th Scientific Council Meetingwith UAE University
25
Tidings from the Middle East
“Life in the Middle East andthe Local Oil Situation”

1. China
Mr. Sase paid a call on SINOPEC’s Head Office and Zhenhai
Refining & Chemical Company, and the CNPC Head Office in April
2009. There he exchanged views on the latest topics in the oil industry
with Mr. Wan Tianpu, President of SINOPEC, head office executivesof CNPC, and the president and department directors of the Zhenhai
Refining & Chemical Company under SINOPEC.

27

Reference“The 27th JCCP International
Symposium” Keynote andSpecial Speech Summaries• Keynote Speech
by Mr. Nasser D. Al Mahasher• Special Lecture 1
by Mr. Vikram M. Sampat• Special Lecture 2
by Mr. Fereidun Fesharaki• Special Lecture 3
by Mr. Abubakr Amer Al-Saiari

29
29
31
33
34

Announcement
Personnel Changes

36

Mr. Wan Tianpu, President of SINOPEC (center)

JCCP NEWS No. 105 October 2009

• Topics •1

(1) SINOPEC Head Ofﬁce
Mr. Sase visited the SINOPEC Head Office inthe morning of April 21 to meet with Mr. Wan, andreceived warm words of appreciation for his visit.
Mr. Wan also said that Japan’s assistance has playeda large role in SINOPEC’s growth, and expressly
thanked JCCP for its many years of cooperation.
The two leaders then exchanged views on the
future direction of SINOPEC and JCCP. In regard
to future JCCP activities, they agreed that it is
becoming increasingly necessary for JCCP to create
new opportunities for exchanges of views and toaddress new needs in response to the times. Basedon this awareness, they discussed issues relating
to environmental conservation, energy saving, andenhancement of refinery performance, as topics ofparticular interest for the future.
Mr. Wan also gave a general overview of newchallenges that SINOPEC is currently addressing,including the development of a new type of fuel(ethanol) from raw materials derived from cellulose,
and the development of automotive fuel by coalliquefaction. As China is expected to accumulate
an almost inexhaustible supply of unused resources,
there is great meaning to utilizing them effectively as
potential sources of energy. Mr. Wan acknowledged
SINOPEC’s strong interest in this new sector as an
essential part of its future.
In his closing remarks, Mr. Wan expressed hishopes that JCCP and SINOPEC will continue tonurture and develop their cooperative relationship.
He emphasized the importance of exploring new
avenues of interaction and understanding by
mutually identifying needs and requests, whileat the same time maintaining the foundation ofmutual exchange that the two organizations haveestablished to date.
(2) CNPC Head Ofﬁce
In the afternoon of April 21, Mr. Sase paid acall on the CNPC Head Office, and met with Ms.
Pei Ying, Deputy Director General, Ms. Lu Ying,
Director, International Cooperation, and Mr. Suo
Zheng, International Cooperation.
Mr. Sase noted that interactions between CNPC
and JCCP began with the establishment of JCCP,

2• Topics •At the CNPC Head Ofﬁce

and JCCP has long supported mutual understanding
between China and Japan. Given their close
relationship, Mr. Sase congratulated CNPC on its
significant growth within the strong and steadydevelopment of China’s national oil industry.
In response, Ms. Pei thanked JCCP for its many
years of cooperation, as well as articulated CNPC’s
future expectations of JCCP in relation to its latest
challenges and initiatives. She also described someof the background to CNPC’s recent businessexpansion. For example, she mentioned how
activities in the upstream sector have increased withthe reorganization of the company in 1988 (spin-off
from SINOPEC), and how its scope of activities
has expanded to include natural gas and renewableenergies and has boosted CNPC into a diversified
global company.
At the end of the meeting, Ms. Pei shared
her thoughts on the shape of mutual cooperation
between oil-producing and oil-consuming countries
and international relationships within global society,saying that relationships between oil-producing andoil-consuming countries, the status of national oil
companies, and the role of international oil majors
are constantly changing as each player continues topursue its business in the global arena. Also noting
the fluctuation of crude oil prices and its heavy
impact on the global market, she remarked that thecooperative relationship between CNPC and JCCP
must also reflect such economic and environmental

JCCP NEWS No. 105 October 2009changes. To this end, Ms. Pei strongly emphasized
the need to hold frequent exchanges of views
between the two organizations.
(3) SINOPEC Zhenhai Reﬁning & Chemical
Company
On April 22, Mr. Sase visited the SINOPEC
Zhenhai Refining & Chemical Company, andwas warmly welcomed by Mr. Jiang Zhenghong,President, Mr. Chen Jian, Vice President, JCCP
graduates, and staff members.
Mr. Jiang opened the meeting with words
of appreciation to JCCP for receiving many
participants to JCCP courses over the years. Mr.
Sase, after briefly describing his meeting with
Mr. Wan Tianpu at the SINOPEC Head Office,expressed his gratitude for the opportunity toobserve first-hand the site of Zhenhai Refining &Chemical Company, SINOPEC’s largest refinery,and duly acknowledged the refinery’s efforts tomaintain steady growth and development into the
future.

At the SINOPEC Zhenhai Reﬁning & Chemical Company

Mr. Jiang Zhenghong, President of SINOPEC Zhenhai
Reﬁning & Chemical Company (center)In summarizing the refinery’s 34 years ofaccomplishment since its establishment, Mr. Jiang
recited three achievements—the greatest crude oil
throughput, highest level of technology, and lowest
refining cost, in all of China. Last year, when ChinesePremier Wen Jiabao visited the refinery, he referredto these three achievements as the government’s
official view of the refinery. This acknowledgement
has provided a source of pride to the refinery.
Before bringing the meeting to a close, Mr. Jiang
once again expressed his appreciation for JCCP’s
28 years of cooperation, and wished for the further
growth of SINOPEC and JCCP through continued
exchanges of views.
Mr. Sase’s visit to China provided a timely
opportunity to exchange views on the future of
JCCP activities and other significant issues withthe relevant departments of SINOPEC and CNPC,
in advance of a summit-level conference between
China and Japan that was scheduled to be held in
Beijing the following week.
<by Shintaro Miyawaki, Training Dept.>

2. Saudi Arabia and Bahrain
Mr. Sase visited Saudi Arabia and Bahrain inearly June 2009.
JCCP regularly encourages Saudi Arabia’s
active participation in JCCP regular courses
and promotes requests for the implementationof customized programs. Based on a previously
conducted survey of needs, JCCP organized a

Customized Program-Overseas (CPO seminar) on
refinery safety management and TPM last year, andhopes to implement customized programs again
this year and into the future. The objective of Mr.
Sase’s recent visit to Saudi Arabia was to exchange
views with the Ras Tanura Refinery on its past
relationship with JCCP and future expectations of

JCCP NEWS No. 105 October 2009

• Topics •3

JCCP activities. Mr. Sase also paid a call on SHARQ(Eastern Petrochemical Co.), a lucrative joint
venture company launched by Saudi Arabian andJapanese companies, and on the Japanese embassyin Bahrain, where the next GCC-Japan Environment
Symposium is scheduled to be held.
(1) Saudi Aramco’s Ras Tanura Reﬁnery
In the morning of June 1, Mr. Sase visited Saudi
Aramco’s Ras Tanura Refinery, where he engaged
in discussion with Mr. Mutleb K. Al Shammeri,
General Manager, and other refinery executives.
Addressing all the key executives of the refinery
attending the meeting, Mr. Sase firstly thanked Saudi
Aramco for its generous cooperation and support of
JCCP activities over many years. He then articulated
JCCP’s future policies aimed at promoting activities
that reflect the rapid changes in the global economic
environment, and addressed complicated issues
concerning energy and the environment. Assuring
an enhancement of activities, Mr. Sase asked Saudi
Aramco, as one of JCCP’s most important partners,
for its support and cooperation in strengthening
their mutual ties.
Mr. Al Shammeri thanked JCCP in turn for its
many contributions over the years, and reported
that Saudi Aramco’s active participation in JCCP
courses since last year has increased an awarenessof the significance and benefits of JCCP courses. He
also said he wishes to actively and systematicallysend participants to JCCP courses as an effectivemeans of human resource development.
After the meeting, Mr. Sase toured the refinerysite.

At the Ras Tanura Reﬁnery

4• Topics •(2) SHARQ
In the morning of June 2, Mr. Sase paid a callon SHARQ (Eastern Petrochemical Co.), locatedin Al-Jubail Industrial City, to hold a meeting with
Mr. Mohammad M. Al-Jabri, President of Eastern
Petrochemical Co.
SHARQ is a joint venture between SABIC (Saudi
Basic Industries Corporation) and SPDC Ltd. inJapan. It specializes in producing polyethylene andethylene glycol using ethylene supplied by Saudi
Aramco. It is also one of the largest companies
within the massive Al-Jubail Industrial City, andis well known as a successful Saudi-Japan joint
venture displaying remarkable growth.
On the day of the meeting, Mr. Sase first received
a summary of SHARQ’s present operating statusfrom Mr. Kazuhiko Kato, an employee of Mitsubishi
Corporation who is stationed in Saudi Arabia. After
conferring with Mr. Kato, Mr. Sase met with Mr.
Al-Jabri and discussed the relationship between
JCCP and Saudi Aramco and details concerning
JCCP activities. Mr. Al-Jabri, on the other hand,shared the following information:(1) SHARQ was established in 1981 as a
joint venture between SABIC and Saudi
Petrochemicals Development Co., Ltd. (nowknown as SPDC Ltd.). Under the Saudi-Japan
cooperative framework, it has enjoyed robust
growth and success in the areas of training ofSaudi operation staff, plant construction, test
operation, technical assistance, and productsales. Mr. Al-Jabri himself has received training
in Japan when SHARQ was first established,
and continues to apply his Japanese training
experience to his management of SHARQ
today.
(2) SHARQ’s corporate motto is “safety, quality,
and teamwork.” With “Safety first” as acatchphrase, the company had achieved a noaccident record of 20 million man-hours by
2007. It has also directed a great deal of effort
to employee training, with the result that 97%
of all employees today are Saudi Arabians.
(3) Future challenges of the company lie intransferring frontline technologies to young
engineers, and in passing on the spirit and

JCCP NEWS No. 105 October 2009At SHARQ

expertise of the first generation (those whoknow Japan and the launching of the company)
to the next generation.
(3) Japanese Embassy in Bahrain
In the morning of June 3, Mr. Sase visited theJapanese embassy in Bahrain and met with H.E.
Ambassador Takeshi Kondo.
To begin, Mr. Sase gave a brief summary of theobjectives of his recent trip and the status of JCCP
activities. He then exchanged views mainly on the
GCC-Japan Environment Symposium, which isslated to be held next in Bahrain from February 8 to
10, 2010, and received an affirmative response fromthe ambassador to his request for cooperation.
Ambassador Kondo, on his part, informed
Mr. Sase about a project that is being plannedby the Bahrain Ministry of Oil and Gas for theestablishment of an “energy conservation center,”and revealed that the ministry has requested
Japanese cooperation in the project.
On his recent visit to the Ras Tanura Refinery,
Mr. Sase engaged in fruitful discussions with major
executives of the refinery in a relaxed and friendly

atmosphere, and learned that there is a growing
awareness of the significance of JCCP courses
within Saudi Aramco. Of particular interest was
Saudi Aramco’s urgent need to address future issues,
such as the development of human resources in
response to new capital investments being madein the construction and addition of facilities in the
petrochemical sector, and the mass retirement of thebaby-boomer generation. As in Japan, workers ofthat generation will hereafter be retiring en masse,and by 2013, it is expected that workers with lessthan five years of experience will account for 30%
of all employees at Saudi Aramco. The issue ofgenerational change also came up in the meetingat SHARQ, bringing to light an awareness thatthe transfer of technology from the old generation
to the new is regarded as a priority issue that is
indispensable to the survival and growth of thecompany.
Through his visits to Saudi Arabia and Bahrain,
Mr. Sase reconfirmed the friendly relationshipbetween JCCP and the two countries, and has gained
a new perspective on future issues.
<by Yoshiaki Ueno, Training Dept.>

At the Japanese Embassy in Bahrain

JCCP NEWS No. 105 October 2009

• Topics •5

Topics

Completion Ceremony for“Application Study of Sulfur Concrete
Technology” in UAE
A two-day ceremony to celebrate the completionof the preparatory phase of the UAE-JCCP joint
technical cooperation project on “Application Studyof Sulfur Concrete Technology” was held on May 10
and 11, 2009, at Marine Resources Research Center(MRRC) in the Emirate of Umm Al Quwain on thefirst day, and at UAE University in the Emirate of
Abu Dhabi on the second day.
The project aims to demonstrate new uses ofsulfur, which is produced in surplus as a by-productin oil refineries. More specifically, modified sulfur
concrete, which is made of sulfur, sand, andaggregates, will be used to make artificial fish reef
blocks and sewage pipes on a test basis to examine
its commercial applicability in UAE. Expectations
for the project are high in UAE, as its successful
completion would not only provide effective usesof by-product sulfur, but could also create new
employment opportunities in the country.
In the preparatory phase, a series of pipes havebeen installed in Al Ain City (removal of an 80meter segment of an existing sewage pipeline andinstallation of sulfur concrete pipes and manholes)
and await the commencement of a demonstration
test for assessing durability, and the necessary
preparations have been made for the installationof an artificial fish reef off the coast of Umm Al
Quwain. With the preliminary groundwork thus
completed, the ceremony was held on the said dates,with the attendance of dignitaries and officials fromboth UAE and Japan.

1. Ceremony at MRRC (May 10)
The ceremony held at MRRC was attended by
Mr. Abdulrazzaq Anwahi, Advisor to the Ministryof Environment & Water; Dr. Ebrahim Jamali,
Director of MRRC; Mr. Abdul Karim, President ofBoard of Directors, Umm Al Quwain Co-operative
6• Topics •Completion ceremony at MRRC

Society for Fishermen; and other relevant parties on
the UAE side. The Japanese side was represented
by Mr. Kazuo Sunaga, Minister, Japanese Embassy
in UAE; Mr. Masahiro Yoshida, Director of Nippon
Oil Corporation; Mr. Yasuji Kakimoto, Director ofPenta-Ocean Construction Co., Ltd.; and Mr. Katsuo
Yokoyama, Managing Director of JCCP. Nippon
Oil Corporation and Penta-Ocean Construction Co.,
Ltd. are two companies participating in the projecton the Japanese side.
Dr. Osama Wahba, Marine Protected Area
& Coral Reefs Specialist, MRRC, opened theevent as moderator, then gave the podium to Mr.
Abdulrazzaq Anwahi, who delivered an opening
speech, followed by Mr. Sunaga, Mr. Yokoyama,
Mr. Kakimoto, and Mr. Karim. All the speakers
expressed their expectation that the project willfurther strengthen cooperative ties between UAE
and Japan. Mr. Yokoyama also took a moment tobriefly describe JCCP activities in UAE. After the
opening speeches, Mr. Kota Nakase, Manager,
Penta-Ocean Construction Co., Ltd., and Mr. Takeshi
Kiyota, Senior Staff, Nippon Oil Corporation, gavea presentation on sulfur concrete technology and

JCCP NEWS No. 105 October 2009

the application of sulfur concrete to artificial fish
reefs and sewage pipelines, which captured theattention of all participants. The session held in
the auditorium, the tour of MRRC facilities, andthe reception, all contributed to promoting greater
understanding of the project.

2. Courtesy Call on H.E. Dr. Maitha
Al Shamsi, Minister of State

3. Ceremony at UAE University(May 11)
The ceremony held at UAE University wasattended by Dr. Maitha Al Shamsi, Prof. Rory
Hume, Prof. Abdel-Mohsen Mohamed, and a
representative from Abu Dhabi Sewerage Services
Company (ADSSC), on the UAE side, and by H.E.
Tatsuo Watanabe, Japanese Ambassador to UAE,
in addition to members of the Japanese delegation
who attended the ceremony at MRRC.
With Prof. Mohamed acting as moderator, theevent began with opening speeches by Prof. Hume,Ambassador Watanabe, Mr. Yokoyama, Mr. Yoshida,and the representative from ADSSC.
As a friendly gesture and a sign of hospitality,
the UAE University side prepared a cake decorated
with the flags of UAE and Japan, and Dr. Al Shamsi,
Ambassador Watanabe, and Mr. Yokoyama literally
joined hands in cutting the first slice.

H.E. Dr. Maitha Al Shamsi, Minister of State(seated second from right)

Preceding the ceremony at UAE University, Mr.
Yokoyama and the Japanese delegation paid a courtesy
call on by H.E. Dr. Maitha Al Shamsi, Minister ofState, to thank her for UAE’s understanding andsupport of JCCP activities. Dr. Al Shamsi said thatJapan’s technical cooperation is indispensable toupgrading technologies at UAE University as wellas in UAE as a whole, and expressed her continued
expectation of JCCP’s support. As Minister ofState who plays a central role in the developmentof science, technology, and education in UAE, Dr.
Al Shamsi takes strong interest in issues related toeducation and technology in the country.
Prof. Rory Hume, Provost of UAE University,
was also present to receive the Japanese delegation.
In reference to the project, he said he has strong
interest in the production of pipes and manholes
using sulfur concrete, largely because it was his
grandfather who invented the hume pipe.

Completion ceremony at UAE University

Cutting a cake decorated with the ﬂags of
UAE and Japan

JCCP NEWS No. 105 October 2009

• Topics •7

As in the ceremony held at MRRC, thepresentations on sulfur concrete technology and theapplication of sulfur concrete to sewage pipelines andartificial fish reefs were received with strong interestby all participants. After the ceremony, the Japanesedelegation, along with their UAE hosts, toured thesite of the sewage pipe installation work and attended
a reception, further promoting greater understandingof the project among all participants.

4. Sewage Pipe Installation
A sewage pipeline managed by ADSSC runs
near UAE University in Al Ain, at a depth ofapproximately 5 meters. This January, a section ofaround 80 meters along this pipeline was removed,
and new pipes and manholes made of sulfur concrete
were installed. These components have been reburied and are now being used as part of the regularsewage pipeline. UAE University is monitoring theirapplicability.

fish reef blocks were installed and provided a clear
indication of the blocks’ effectiveness. Continuous
observations will be made to assess the effectivenessand durability of the sulfur concrete fish reef.
On a final note, we would like to extend our
deepest appreciation to UAE University, MRRC, theJapanese Embassy in UAE, Nippon Oil Corporation,
Penta-Ocean Construction, and all relevant parties
for their kind support and cooperation in making
the ceremony possible.
<by Hiroshi Iida, Technical Cooperation Dept.>

5. Artiﬁcial Fish Reef Installation
An artificial fish reef was installed in the waters off
the coast of Umm Al Quwain about one month after
the ceremony. A total of 215 fish reef blocks made ofsulfur concrete (2.2 tons/block) were stacked threedeep at a depth of 15 meters, 6 kilometers off the coastof Umm Al Quwain. The blocks, which were stored
in an MRRC facility, were transported to the port,
loaded onto a ship by crane, and installed at sea.
Schools of fish appeared soon after the artificial

Local newspaper article on the completion ceremony

Site of sewage pipe installation work in Al Ain(pipes and manholes before being buried)

School of ﬁsh swimming around the artiﬁcial ﬁsh reef
installed on the ocean ﬂoor

8

• Topics •JCCP NEWS No. 105 October 2009

Topics

Signing Ceremony for the Project on“Mild Hydro-cracking of LCO &Evaluation of Gas Oil HDS Catalysts”
in Saudi Arabia
On May 17, 2009, JCCP and King Fahd presented a commemorative gift to Dr. AbdulUniversity of Petroleum and Minerals (KFUPM) Jauwad, and brought the ceremony to a successful
held a ceremony for signing a Memorandum of close.
The project will be implemented in the following
Agreement (MOA) on the joint technical cooperation
project, “Mild Hydro-cracking of LCO & Evaluation four stages, over a period of three years, from April
1, 2009 to March 31, 2012.
of Gas Oil HDS Catalysts,” in Saudi Arabia.
The objective of the project is to lay the basic
groundwork for the development of mild hydro- 1. Patent and Literature Survey
cracking technology toward the effective utilizationof the surplus of light cycle oil (LCO) that is
The latest patents and technical literature relating
expected to grow in the future, and to develop a to the project will be surveyed, to establish a roadmap
technology for the evaluation of catalysts that are for the project using the acquired information.
used to produce low-sulfur diesel fuel with a sulfur
content of less than 10ppm from Saudi Arabia’s 2. Installation of Testing andhigh-sulfur heavy crude oil.
Analysis Apparatus
For the first time in a JCCP technical cooperation
project, a Japanese university (Kyushu University)
The following three types of testing and analysis
has participated as a member of a consortium headed apparatus will be installed.
by Nippon Oil Research Institute Co., Ltd.
i) Micro-testing unitii) Gas chromatograph with atomic emission
Dr. Sahel N. Abdul-Jauwad, Vice Rector for
Applied Research, and Mr. Katsuo Yokoyama,detector (GC-AED)
Managing Director of JCCP,
signed the agreement in the
ceremony, which was also
attended by Mr. Fumio Iwai,
Minister, and Mr. Toshiki Nagano,First Secretary, from the Embassyof Japan in Saudi Arabia, and
Dr. Isao Mochida, Professor at
Kyushu University.
Preceding the signing, Mr. Iwaigave a congratulatory speech in
Arabic, and Mr. Yokoyama, Dr.
Abdul-Jauwad, and Dr. Mochidaeach offered a few words ofgreeting in English. After signing
Signing ceremony: Dr. Sahel N. Abdul-Jauwad,
Vice Rector for Applied Research (seated right)
the agreement, Mr. Yokoyama

JCCP NEWS No. 105 October 2009

• Topics •9iii) High-performance liquid chromatograph(HP-LC)The micro-testing unit will be used to evaluate
catalyst performance. The GC-AED and HP-LC
will analyze the feed oils that will be loaded in thetesting unit and the oil products derived from thecatalyst performance test conducted in the microtesting unit.

3. Analysis of Gas Oil and Light Cycle
Oil (LCO)
Various types of feed samples from Saudi
Arabian crude oil will be acquired by distillation
and used to produce gas oil. LCO, a by-product of
fluid catalytic cracking, will also be used as gas
oil feed. These feed samples will be analyzed by amethod proposed by Kyushu University. Lastly, they
will be loaded in the micro-testing unit to inducea reaction, and the derived desulfurized oil will beanalyzed by the same method used to analyze thefeed samples.

Mr. Yokoyama presenting a commemorative gift to
Dr. Sahel N. Abdul-Jauwad, Vice Rector for
Applied Research, KFUPM

4. Catalyst Performance Evaluation
Experimental catalysts will be researched andtheir performance evaluated in the micro-testing
unit, in reference to commercial catalysts. Initially,
commercial catalysts will be evaluated with gas
oil feed and LCO, to gain an understanding ofdesulfurization trends.
Following the ceremony, the Japanese delegation
toured the research facilities at KFUPM, then paid acourtesy call on H.E. Dr. Khaled S. Al-Sultan, Rectorof the University. Dr. Al-Sultan explained that, on
learning of Kyushu University’s participation in
the project, he pushed back the boundaries of hisuniversity’s organization and instructed two up-andcoming young faculty members from the Chemical
Engineering Department (Dr. K. Al-Hooshani,
Associate Professor, and Dr. M. Al-Daous,
Associate Professor) to join the project members on
the KFUPM side. More so than previous projects, hesaid he hopes this project will further evolve in the
future as a mutual sharing of intellectual knowledge.

10 • Topics •H.E. Dr. Khaled S. Al-Sultan, Rector of KFUPM,
presenting a commemorative gift to Mr. Fumio Iwai,
Minister of the Japanese Embassy in Saudi Arabia

After enjoying a pleasant exchange of views, Mr.
Yokoyama presented a commemorative gift to Dr.
Al-Sultan, who in turn, presented a commemorative
gift to Mr. Iwai.
A brief overview of the project was introducedin three local newspapers the following day, basedon a press release distributed to the media.
This project marks a milestone as the first
JCCP technical cooperation project that includes
a university on both the Saudi and Japanese sides.
We hope that the successful completion of the
project will contribute to the further developmentof friendly ties between our two countries.
<by Hiroaki Hara, Technical Cooperation Dept.>

JCCP NEWS No. 105 October 2009

Topics

FY2009 JCCP Program Seminar
The FY2009 JCCP Program Seminar (TCJ-109) was held over an eight-day period, from July
8 to 15. The seminar invites JCCP counterpart
managers from state-run oil companies in oilproducing countries to visit JCCP and exchange
views with JCCP personnel regarding future plans
for regular courses in Japan and dispatch of expert
services abroad. It also aims to promote greater
understanding of JCCP in oil-producing countries
by offering JCCP counterparts an opportunity topersonally experience Japan and JCCP.

1. Participants
The eight participants of the seminar consisted
mainly of managerial personnel of human resource
management departments, with an average age of
45. They were from Indonesia (PERTAMINA),
Iran (NIORDC), Kazakhstan (KazMunayGas),
Libya (NOC), and Saudi Arabia (Saudi Aramco),
five countries that also participated in last year’s
seminar. We believe that the significance of theseminar has begun to be acknowledged in majoroil-producing countries.

2. Seminar Content(1) Regular Course Experience
To give participants of the program seminar a
general idea of what regular course participants
usually go through, we had them experience the entire
flow of a regular course, including an orientation
session, opening ceremony, administrative guidance,

lectures on “overview of Japan’s oil industry”
and “Japanese language and society,” and closing
ceremony. We also provided a visit to a refinery and acultural field trip as we do in our regular courses.
(2) Information Exchange on Human Resource
Development Programs in Each Country
We asked each participant to deliver a presentation
to an audience composed of people from JCCP
member companies and JCCP personnel, on a
general overview of their company, its humanresource development policies, and its evaluation
and requests of JCCP training programs. Throughthese presentations, we have gained a better
understanding of our counterparts, and haveacquired invaluable information regarding theirevaluation and requests of JCCP, which we intend
to use to improve our future training programs.
(3) Overview and Discussion on JCCP’s Future
Training Activities
Seeking to promote active utilization of FY2010
JCCP regular courses and FY2009/2010 customized
programs (Customized Program-Overseas (CPO)and Customized Program-Japan (CPJ)), we outlined
the annual schedule of FY2010 regular courses andgave a detailed summary of customized programs.
We also discussed requests, improvements, andmatters for confirmation related to JCCP training
programs as a whole.
Particularly in regard to CPO/CPJ, we sought toidentify specific needs in each country, by giving adetailed description of common themes—refinery

Presentation venue

JCCP NEWS No. 105 October 2009

Individual discussions on CPO/CPJ• Topics • 11

At Idemitsu Kosan Co., Ltd., Tokuyama Reﬁnery

Seminar participants

management, human resource management,
human resource development, energy conservation,
upgrading of heavy oil, environmental management,
maintenance management, and advanced processcontrol—and proposing a sample implementation
schedule. From the participants we learned that there
are strong needs in the areas of TPM (Total Productive
Maintenance/Management), safety management,
DCS (Distributed Control System), and TQM (Total
Quality Management) for managers, and therefore
plan to use this information to make even more
specific CPO/CPJ proposals in the future.
As a result of implementing a program seminar
every year, we have gained a more accurate
understanding of the needs and issues facing eachcountry, and believe we are making significant
progress in providing CPO/CPJ on themes that
could contribute to solving those issues.

understanding of Japan and JCCP, and haveestablished a close, trusting relationship with
the JCCP staff. We are hopeful that their new
perspective will encourage them to more
actively promote the use of JCCP training
programs in the future.
As part of the seminar, a visit was made to
Idemitsu Kosan Co., Ltd.’s Tokuyama Refinery,
where refinery staff gave a lecture on humanresource development and provided a tour ofthe site. In terms of offsite training experience,the visit was more than expected, and received
high marks from all participants.
(2) To promote greater implementation of CPO/CPJ
that are designed to respond specifically to eachcountry’s needs, we held a discussion with eachparticipant, with their approval, to establish
details for their possible implementation.
(3) We have obtained information on theorganizational structure and human resource
development policies of each participant
country, as well as their evaluations andrequests regarding JCCP training activities.

3. Summary
The eight-day seminar provided the participants
with an ideal opportunity to strengthen theirrelationship with the JCCP staff, and their exposure
to Japanese society and culture helped them togain a better perspective of Japan. We hope theirexperience will promote their further participationin JCCP programs.
As described below, the seminar has benefited
both JCCP and participating countries, and has
accomplished its intended objectives.
(1) The participants have deepened their

We will carefully analyze and assess the fruitsof this year’s program seminar, so that we may not
only improve next year’s seminar, but also offer evenbetter training programs in the future.
Lastly, we thank Idemitsu Kosan’s Tokuyama
Refinery for its thorough response and support, andextend our deepest appreciation to everyone who put
in a lot of time and effort in helping us implement
an efficient and effective seminar.
<by Takashi Hori, Operations Dept.>

12 • Topics •JCCP NEWS No. 105 October 2009

Topics

Interviews with JCCP Counterparts(Saudi Arabia & Oman)
To produce a promotional DVD of JCCP, JCCP has interviewed Mr. Fareed Z. Kamfar, MaintenanceManager (then), Ras Tanura Refinery, Saudi Aramco, and Mr. Masoud S. Al-Msalmy, General Manager,
Corporate Support, Oman Refinery and Petrochemicals Company, on their views of JCCP activities seenfrom an oil-producing country. Since the views the two gentlemen shared with us are highly valuable andenlightening, we introduce some excerpts from the interviews below.

1. Saudi Arabia
Mr. Fareed Z. Kamfar
Maintenance Manager (then), Ras Tanura Refinery, Saudi Aramco
Interviewer: Mr. Kamfar, thank you very much for
accepting this interview. You participated in
a JCCP course once in 1984, so you are oneof our oldest participants and are probably
very familiar with JCCP activities. What has
impressed you most, in your first participation
in a JCCP course in 1984 and your second in2008?
Mr. Kamfar: I was 25 or so when I participatedin a JCCP course for the first time in 1984.
The JCCP course was my window to Japan’sculture and business environment.
Since then, I began to read books, attend
lectures, and watch TV programs on Japan to
become more familiar with Japan. After mylast visit to Japan in October 2008, I personallybegan giving lectures about Japanese culture
and how business is run in Japan.
There are many differences between Japanand the Middle East. We live by the Middle
Eastern culture and receive the influence ofthe Western business culture. We cannot fully
understand how the Japanese conduct business
unless someone who has a perspective on
both cultures provides a link. Only then can
we see the true picture of Japanese businesspractices. Therefore, we need someone who
would make that effort.
I cannot say that I understand Japan to the

Mr. Fareed Z. Kamfar,
Maintenance Manager (then)level that is necessary to provide that link, but
I think I have gained a good understanding ofJapanese business practices. I see that Japanesebusinesses are founded on a culture that values
personal relationships, and have learnt theconcept, “trust before business,” from Japan.
In our business environment, business comes
first, then trust. This is probably one of thegreatest differences between how business isconducted in Japan and the Middle East.
I have also learnt that Japanese companies
place importance on educating their employees
to further improve business. To us, this is acompletely different approach to conducting
business.

JCCP NEWS No. 105 October 2009

• Topics • 13

These are some of the brief impressions
I have of the past 25 years of exposure to
Japanese culture.
Interviewer: What do you think is the mostdistinctive feature of JCCP programs, comparedto those of other training institutions?
Mr. Kamfar: This is an interesting question.
We have oil, and we have the money to buy
anything we need, be it technology, hardware,or training. However, we cannot buy people’s
minds and brains.
Japan has a precious resource that we do
not have-human resources. We could benefit a
lot if we can manage to tap into that resource.
In this respect, I think JCCP is unique in thatit shows and teaches us the importance ofhuman resources and how we may apply thatknowledge to the Middle East.
Many people in the Middle East still do notknow much about Japan. However, creating
more opportunities to experience Japan could
cultivate more interest in learning about thecountry. Japan has good business practices,successful businesses, and high-quality
products. From there, we take an interest inJapan and wish to know more. Therefore,
what I think is outstanding about JCCP isthat it taps into people’s brains and minds.
It is a remarkable approach. For me, JCCP
is the only window through which I can see
Japanese culture, but I am hopeful that thiswindow will expand and become a large
gateway to Japan in the future.
Interviewer: How has JCCP contributed to Saudi
Aramco in the past?
Mr. Kamfar: Many practices in Japan are similar
to what we have, in terms of culture, society,and values, so it is not necessarily difficult to
introduce Japanese practices to Saudi Arabia
and adopt them at Saudi Aramco.
The Japanese are good at working together
as a team. That is not to say that only the

14 • Topics •Japanese engage in teamwork, because so do
many other countries throughout the world.
However, I think the Japanese particularly
excel at teamwork.
As a result of adopting the idea ofteamwork from Japan and beginning to workin teams, we are seeing large improvements
in work efficiency compared to working as
individuals. For example, we have an OME(Operation Maintenance Engineering) team in
our company whose members are producing
greater results by working as a team than as
individuals.
Quality is another element. As all products
produced by the Japanese are of high quality,
by bringing that concept to our environment,
we could also take our business to a higher
quality level. The Japanese are diligent, andstrive to deliver their work with precision. I
think it is admirable that they spend a lot oftime and energy performing their work but
also enjoy it. We also believe that enjoying
one’s work is an important element in ourjobs.
We are adopting many Japanese practices
in our company. This past January, we had
JCCP staff hold a TPM seminar. As TPM isa new concept to Saudi Aramco, it made alarge impact on the participants, and we saw
a lot of energy in the workshop. Even during
the seminar, they gave instructions over thephone to start implementing TPM in theirworkplaces. They said they were glad they
participated in the seminar, and that they wish
to apply what they had learned to their own
workplace. I think this would be a starting
point for the implementation of TPM at Saudi
Aramco, and in this way, what JCCP has beendelivering since its founding has had a large
impact on Saudi Aramco.
Interviewer: What future expectations do you
have of JCCP?
Mr. Kamfar: I have been thinking about this since
I visited Japan last October. We buy a lot of

JCCP NEWS No. 105 October 2009

Japanese products, including technologies
and cars, because they provide high quality.
However, we cannot buy the Japanese spirit
and mind. I think Japan needs to open its small
window and create a larger gate. I ask this not
only of JCCP, but the entire country of Japanand its government.
I would like to make three proposals on
how the Japanese can capture the minds ofpeople in the Middle East by performing
business in the Japanese way. Firstly, Japan
could come to the Middle East and invest in
education, and particularly in universities
and vocational schools. This would capture
the heart of every mother in Saudi Arabia,
because they would want their children
to receive a higher education and to havegreater job opportunities. It would also open
our window wider to Japanese business andculture.
Another proposal concerns the media.
When we wish to learn about Japan, we needto read a book, see somebody who would
lecture about Japan and Japanese businessstyles, or visit Japan. However, if there areprograms on satellite TV that introduce
Japanese culture and business, we could study
about Japan more conveniently. Japan needs
to make a stronger approach to penetrate thewall separating us.
Finally, I would also like Japan to bringto the Middle East businesses that will touch
our lives. Such businesses would make us
more familiar with the Japanese style of doing
business, or at least allow us to experience forourselves the true value of Japanese business.
For example, American and European fastfood shops and coffee shops are changing thenewer generation in the way they eat, the way

they behave, the way they interact with others,
and the way they conduct themselves. In thesame way, Japan should establish a presencein our daily lives, in order to understand us
more. Japan has done an outstanding job of
selling cars and IT, but it needs to make more
effort to transform people’s lifestyles.
This pertains not only to JCCP, but to all
Japanese. Through the collective efforts of all
Japanese people, I am certain you can makeit happen.
Interviewer: I understand that managerial
personnel at Saudi Aramco do not have theirname on their uniform, but what made you
decide to have your name on your uniform?
Mr. Kamfar: My last visit to JCCP in October 2008
had a profound impact on my personal actions.
I saw that in Japanese refineries and industries,
the management approaches the employees,
whereas in our business, the management
has employees come to them. After returning
to my country, I decided to spend 70% of
my time with my subordinates, and to put
my name on my uniform so they can easily
identify me. In Japan, personal relationships
among employees and the trust that is bornfrom those relationships are extremely
important to success in doing business. Basedon this understanding, I want everyone at therefinery to know me not as refinery manager,
but as an individual. This is why I have myname on my uniform, and not my title.
Interviewer: Thank you very much for sharing
your invaluable views.
Mr. Kamfar: Thank you.

JCCP NEWS No. 105 October 2009

• Topics • 15

2. Oman
Mr. Masoud S. Al-Msalmy
General Manager, Corporate Support, Oman Refinery and Petrochemicals Company

Interviewer: Mr. Al-Msalmy, what has impressed
you most when you visited Japan?
Mr. Al-Msalmy: First of all, I would like to thank
JCCP for all the assistance it has given to
ORPC. Now, the relationship between ORPC
and JCCP goes back 27 years, beginning justwhen the refinery was commissioned.
I have maintained ties with JCCP overthe past 27 years, and have seen how JCCP
programs have evolved with the advancementof Japanese technologies, and how our people
have benefited from them. The technology wehave acquired through those programs has
provided the basis for the technology that wehave today.
However, what I have found mostimpressive was JCCP’s flexibility inresponding and adjusting to our businessneeds and technological level.
Interviewer: What do you consider is the best
feature of JCCP programs, compared to thoseof other training institutions?
Mr. Al-Msalmy: From the standpoint of a refinery,
we find that JCCP programs come nearest to
being tailor-made to suit our on-site technicalneeds. Not many organizations in the world
do. While most of the programs offeredby other organizations are generic, JCCP
programs are refinery-specific, and are what
we seek as a refining company.
I have also seen participants of JCCP
programs take advantage of the opportunityof those programs to gain an interculturalexperience. They meet their counterparts frommany other countries and learn from them,in addition to learning from the instructorsof the programs. They exchange ideas andshare problem cases that have occurred at

16 • Topics •Mr. Masoud S. Al-Msalmy,
General Manager, Corporate Support

their respective refineries and how they have
solved those issues.
I have a specific example of how somethingthat one of our engineers learned fromthe JCCP course in which he participatedbenefited us greatly. The knowledge he gained
has been applied to our refinery. We werethinking that we would need to spend a large
amount of money on solving the relevant
issue, but with the solution our engineer cameback with, we spent almost nothing, and still
we were able to solve the issue. We appreciate
the fact that JCCP provides opportunities
to network with other participants in oilproducing countries.
Interviewer: What do you want your staff to learn
at JCCP?
Mr. Al-Msalmy: Japan as a whole is respected
for the way it values people. The Japanesestyle of business is unique, particularly at thesupervisory level. Since it has proven successful
in many ways, we would like our people tolearn from Japan’s vast experience.

JCCP NEWS No. 105 October 2009

Our people have taken part in many JCCP
technical programs, but I would like them torealize that they need to achieve a balance
between technical programs and supervisorylevel programs. This is because I believe that
simply possessing technical knowledge is notenough. People need to take advantage of theknowledge they have. To do so, it is importantthat supervisors, or those poised to becomesupervisors, draw out knowledge from theirstaff and utilize it in their work.
I would like to see us adopt the strengths
of Japanese management style to a muchgreater extent, by providing our people withgreater opportunities to learn about Japanesesupervisory skills at JCCP.
I would also like to see technical training
programs become more extensive. Whenconsidering the distance between Japan andOman and the time it takes to travel between
the two countries, I would like to see fewer
visits to workshops and plants in Japan. I
recognize the advantage of such visits, but
I think classroom sessions can also expose
participants to both Japan’s technical expertiseand personal management skills.
I am fond of the Japanese management
style. I just think that if JCCP provides a goodbalance of technical and supervisory programs
that are both extensive and meaningful, JCCP
programs as a whole would come to have aneven greater impact.
Interviewer: How has JCCP contributed to ORPC
in the past?
Mr. Al-Msalmy: If there is any company thatshould be grateful to JCCP, it is ORPC.
Like I have said earlier, almost our entire
technical staff has participated in a JCCP
program. We are able to do what we do today
owing precisely to their JCCP experience.
Even those who have gone on to becomesupervisors, area supervisors, and process
managers have received JCCP training in thepast. We sincerely appreciate the role JCCP
has played in developing our personnel.
We would like to maintain this mutual
cooperation with JCCP, so that we may
continue to take advantage of JCCP facilities
and programs and learn about Japan’s
technologies and experience.
Interviewer: What future expectations do you
have of JCCP?
Mr. Al-Msalmy: I think JCCP has created for itself
a unique platform of training programs thatallows participants from various countries
and various positions in different companies
to create a global network of knowledgesharing. It would be interesting if JCCP
would take another step forward and create
an electronic network, so that participantsof JCCP programs could keep in touchwith each other, discuss issues they face intheir plants in a timely manner, and perhaps
create occasions to visit each other. I think
this would bring a significant change to how
we conduct business. I would really like to
see a phenomenal change in the platform ofknowledge-sharing. I would really like to see
this happen, and on our end, we are ready toprovide whatever assistance is needed.

JCCP NEWS No. 105 October 2009

• Topics • 17

Personnel
Exchange

Seminar on “Energy Saving in the Refinery”
Held at TAKREER (UAE)
1. Background to the Seminar(3)

UAE is one of the most important countries toJapan in securing a stable supply of crude oil. It also
plays a leading role in the Middle East, particularlyin the introduction of renewable energies as the next
major energy source following crude oil.
In response to JCCP’s promotion of Customized
Programs-Overseas (CPO) that are specificallydesigned based on a survey of training needs inmajor oil-producing countries, Abu Dhabi Oil
Refining Company (TAKREER) has requested
the implementation of a CPO on energy saving in
spring and another on environmental managementin autumn. After working out the details andschedule of the programs, we held the first of thetwo programs that are planned to be implemented
during the present fiscal year.

(4)

2. Overview of the Seminar
(1)

(2)

Name
TAKREER-JCCP Joint Seminar on Energy
Saving in Refinery (CPO-21-09)
Date
June 28 – July 2, 2009

Location
Abu Dhabi, UAE
Lecturers<Lecturers from the JCCP Training Dept.>i)
Tetsuji Kubotaii) Shigeyoshi Takahashi<Outside lecturers>iii) Mr. Hisato Aoyama, Senior SalesManager, Heavy Oil Project, Global
Marketing, JGC Corporationiv) Mr. Mitsuru Sugihara, Foreman,
Administration Section No.1, Tokuyama
Refinery, Idemitsu Kosan Co., Ltd.

3. Details of the Seminar
Japan has a long history in energy conservation.
Especially since 1979, when the Act on the Rational
Use of Energy (Energy Saving Law) came into
effect in the wake of the second global oil crisis, theentire nation has shown consistent efforts to saveenergy. Therefore, we organized this seminar withhopes that Japan’s history and experience in energy
conservation could be of some use in promoting
energy-saving activities in the Middle East.

Seminar participants and JCCP-side lecturers

18 • Personnel Exchange Programs •JCCP NEWS No. 105 October 2009

Lecture scenes

The seminar covered the following topics:
Day 1: Japan’s Oil Industry
Alternative Energies to Oil
Energy Saving in Japan
Energy Saving in the Refinery
Day 2: Energy Saving in the Refinery 1 (Operational
Management, Small Investments)
Pinch Technology
Day 3: Energy Saving in the Refinery 2 (Large
Investments)
New Energy Saving Technologies
Day 4: Group Discussion on Energy Saving in the
WorkplaceDay 5: Energy Saving Using the Computer
Actual Examples of Optimization Using
Computers
TAKREER operates two refineries: the largescale Ruwais Refinery and the Abu Dhabi Refinery
situated adjacent to Abu Dhabi City. They use
a simple hydro-skimming facility that requires
few secondary devices to process light crude oil
produced in UAE, including Murban crude. We
understand that they have rated favorably in manyof the categories of the Solomon Survey. Following
the completion of a JCCP technical cooperation
project on flare gas recovery, the refineries haveactively promoted energy-saving measures, andare now two of the most advanced refineries in the
Middle East.
From the above two refineries, 14 experts,
including 2 women, attended the seminar held
recently.

4. Overview of Lectures
As a new initiative, we added a group discussion

Presentation by a participant

session to our conventional program on energy
saving. We divided the participants into groups andhad each group discuss energy-saving efforts intheir workplace. We then asked all groups to delivera presentation on the issues, future direction, andother specific aspects of energy-saving activities.
Through the group discussion session, we hoped
to provide a forum where participants could gain
practical ideas and hints that would benefit their
future work.
(1) Day 1: Energy Saving in Japan
Following an introduction of JCCP and Japan’s
oil industry and a lecture on alternative energies,
we delivered a lecture on Japan’s history andcountermeasures for energy saving, and another on
the global warming issue and energy saving in therefinery, as scheduled. Though the lectures covered
a lot of content in a short time, they seemed to bewell received by all participants.
The lectures emphasized the following threepoints: (1) energy saving is a global commitmentthat contributes to solving environmental issues; (2)Japan’s energy conservation activities are jointly
implemented by the public and private sectors; and(3) small-group activities should form the basis ofenergy saving in refineries. The third point on smallgroup activities, in particular, seemed to capture theavid attention of the participants as an issue thatpertains directly to them.
(2) Day 2: Energy Saving in the Reﬁnery 1(Operational Improvement, Small
Investments) / Pinch Technology
In the first half of the second day’s program, we
discussed specific examples of operational changes
and improvements in Japanese refineries that do not

JCCP NEWS No. 105 October 2009

• Personnel Exchange Programs • 19

require capital investment, again with an emphasison small-group activities, TPM, and other uniqueinitiatives developed in Japan.
In the latter half of the program, we introduced
pinch technology, a tool that is used to analyze
system design in the rearrangement of a heatexchanger. We also covered topics that provided afoundation for studying specific cases the next day
at a refinery.
(3) Day 3: Energy Saving in the Reﬁnery 2(Large Investments) / New Energy Saving
Technologies
On the third day, we explained about capital
investment projects for energy conservation that are
being implemented in refineries, and the profit ofsuch projects. In response to lectures on the plot andlayout of actual heat exchangers and the reliability
and safety of additional equipment, the participantsalso introduced their experiences at TAKREER.
JCCP lecturers and TAKREER participants thus
actively exchanged opinions and engaged ininteractive discussions with each other.
In the latter half of the day’s program, wetalked about the introduction status of the latest
equipment in refineries, and proceeded to describing
the details of such equipment. Since there werea number of power plant engineers among theparticipants, we hastily arranged a lecture on IGCC
(Integrated Gasification Combined Cycle), which
captured the participants’ attention and gained theirappreciation.
Information on high-efficiency heat exchangers
that incorporate the latest technologies was also asource of strong interest among the participants.
(4) Day 4: Group Discussion on Energy Savingin the Workplace
On the fourth day, we provided a forum forgroup discussions on designated energy-saving
issues. Adopting a method commonly used in TQM,
TPM, and various other management practices,each group identified a specific issue they face intheir workplace, analyzed its causes, and gave apresentation on improvement measures or future
visions regarding that issue.

20 • Personnel Exchange Programs •As a summary of the constructive ideas thatemerged from the discussions, we emphasized
four important points and then wrapped up thesession. The four points were: (1) the developmentof operators who read manuals carefully and think
for themselves; (2) encouragement of small-group
activities; (3) the necessity of risk management
when considering an operational change; and (4)constant efforts to make improvements using the
PDCA (Plan, Do, Check, Act) cycle.
After the final discussion session, many
participants articulated their appreciation of theseminar. By participating in the seminar, theysaid they obtained knowledge and information
for resolving problem areas in their workplace,and were inspired by the exchange of views withparticipants from fields other than their own.
The stronger-than-expected positive feedback
from the participants has in turn inspired us toincorporate such discussion sessions in otherseminars as well.
(5) Day 5: Energy Saving Using the Computer /Examples of Optimization Using Computers
In the first part of the day’s lecture on energy
saving using the computer, we provided thebasics of PID (Proportional-Integral-Derivative)
control, MPC (Model Predictive Control), APC(Advanced Predictive Control, and RTO (RealTime Optimization). We explained their differences
and introduction methods in an easy-to-understandmanner in relation to the various controls needed todrive a car, as an example.

Presentation of the completion certiﬁcate

JCCP NEWS No. 105 October 2009

In the second part of the lecture, we introduceda case example in which APC was introduced
to optimize operations in response to changes inneeds regarding multi-boiler and power generator
utility systems. In the example, the introduction of
APC also contributed to reducing the manpower
needed to switch between steam, electricity, andfuel operations.

5. Reﬂections
At the end of the seminar, the participants wereasked to fill in an evaluation sheet and give theirimpressions and opinions of the seminar. As a result,
we received many opinions concerning the group
discussion session. It was the first attempt of its kindfor us lecturers, but it was a new experience for theparticipants as well. They said that the opportunity
to hold a discussion with members from the same
workplace, followed by a discussion with groups ofparticipants from other workplaces, was extremelyinteresting and meaningful.
At the closing ceremony, we received kind words
of appreciation from Mr. Ahmed Herzallah, Senior
Career Development Officer, and Mr. Anwar M.
G. Al Mutawa, Senior Training Officer. (Mr. Al
Mutawa is also the gentleman who undertook all of
the necessary preparations for the seminar as ourcounterpart in TAKREER.) Mr. Ahmed M. Al Gattan,
Director, Training & Career Development, also
attended the ceremony to confirm the participants’reaction to the seminar, and both the TAKREER
and JCCP sides were gratified by the participant’s
extremely high evaluations of the seminar.
The participants, many of whom attended a JCCP
program for the first time through this seminar,

Mr. Ahmed M. Al Gattan, Director,
Training & Career Development (seated center),at the TAKREER Head Ofﬁce

expressed their wish to also attend a JCCP regularcourse in the future.
After the seminar, we visited the TAKREERHead Office to assess the results of the seminar anddiscuss future plans. We also paid a courtesy callon the Japanese Embassy in UAE, where we gave areport on the seminar, as well as received invaluable
information on current issues in Abu Dhabi.
In sum, the recent seminar convinced us thatthe continuous implementation of joint seminars
with TAKREER would further strengthen our
two organizations’ long-standing relationship andcontribute to enhancing mutual understanding.
Duly realizing that the implementation ofsuch seminars is made possible by JCCP member
companies and cooperating companies inside andoutside of Japan, we would like to extend our
deepest appreciation to everyone who gave us theircooperation in the planning of the recent seminarthrough to its implementation.
<by Tetsuji Kubota, Training Dept.>

JCCP NEWS No. 105 October 2009

• Personnel Exchange Programs • 21

JCCP Regular Courses Completed in April – July 2009

TR-1-09
Online Analyzer and its Utilization in Control
Period:April 7 – April 24, 2009
No. of participants:
14
Country of participants: Indonesia, Iran, Libya, Malaysia, Mexico,
Myanmar, Nigeria, Oman, Pakistan,
Saudi Arabia, UAE, Vietnam, Yemen

TR-2-09
Petroleum Marketing
Period:April 7 – April 24, 2009
No. of participants:
15
Country of participants: Indonesia, Kuwait, Kazakhstan, Libya,
Nigeria, Oman, Pakistan, Russia, Thailand,
UAE, Vietnam, Yemen

TR-3-09
Upgrading Processes of Heavy Oil
Period:April 7 – April 24, 2009
No. of participants:
13
Country of participants: Indonesia, Iran, Kazakhstan, Kuwait, Libya,
Mexico, Nigeria, Vietnam, Yemen

TR-4-09
Human Resource Management
Period:May 12 – May 29, 2009
No. of participants:
14
Country of participants: Indonesia, Iran, Kuwait, Malaysia, Myanmar,
Oman, Pakistan, Saudi Arabia, Thailand,
VietnamTR-5-09
Essential Petroleum Refining for Process Engineers
Period:May 12 – May 29, 2009
No. of participants:
14
Country of participants: China, Indonesia, Iran, Kuwait, Malaysia,
Nigeria, Oman, Vietnam, Yemen

22 • Personnel Exchange Programs •JCCP NEWS No. 105 October 2009

TR-6-09

Diagnostic Techniques and Maintenance for Rotary
Machinery
Period:May 12 – May 29, 2009
No. of participants:
17
Country of participants: Indonesia, Iran, Kuwait, Malaysia, Nigeria,
Oman, Thailand, UAE, Vietnam

TR-7-09
Refinery Management
Period:June 2 – June 16, 2009
No. of participants:
12
Country of participants: China, Indonesia, Iran, Kuwait, Libya,
Oman, Pakistan, Saudi Arabia, UAE,
Vietnam

TR-8-09
DCS Fundamentals and Applications
Period:June 2 – June 19, 2009
No. of participants:
12
Country of participants: China, Indonesia, Iran, Kuwait, Libya,
Myanmar, Nigeria, Pakistan, Vietnam,
Yemen

TR-9-09
Safety Management for Refineries
Period:June 23 – July 10, 2009
No. of participants:
17
Country of participants: China, Indonesia, Iran, Kuwait, Libya,
Myanmar, Nigeria, Saudi Arabia, Thailand,
UAE, Vietnam, Yemen

TR-10-09 Material Problems and Their Countermeasures
Period:June 23 – July 10, 2009
No. of participants:
13
Country of participants: China, Indonesia, Iran, Kuwait, Pakistan,
Qatar, Saudi Arabia, UAE, Vietnam, Yemen

Total: 141 participants

JCCP NEWS No. 105 October 2009

• Personnel Exchange Programs • 23

FY2010 JCCP Course Schedule
In FY2010, JCCP will offer 23 courses, including 21 regular courses (TR) and 2 intensive courses(IT), as shown below.
Course No.

Course title

PeriodTR-1

Petroleum Marketing

Apr 6

–

Apr 23, 2010

TR-2

Upgrading Processes of Heavy Oil

Apr 6

–

Apr 23, 2010

TR-3

DCS Fundamentals and Applications

Apr 6

–

Apr 23, 2010

TR-4

Human Resource Management (HRM)

May 11 –May 28, 2010

TR-5

Essential Petroleum Refining for Process Engineers

May 11 –May 28, 2010

TR-6

Diagnostic Techniques and Maintenance for Rotary MachineryMay 11 –May 28, 2010

TR-7

Refinery Management

Jun 1

Jun 15, 2010

TR-8

Safety Management for Refineries

Jun 22 –Jul 9, 2010

TR-9

Maintenance Management

Jun 22 –Jul 9, 2010

TR-10

Environmental Management for Refineries

Sep 28 –Oct 15, 2010

TR-11

Material Problems and Their CountermeasuresSep 28 –Oct 15, 2010

TR-12

Advanced Field Devices and Control

Sep 28 –Oct 15, 2010

TR-13

Petroleum Marketing and Product Delivery

Oct 19 –Nov 5, 2010

TR-14

Gas Processing for LNG

Oct 19 –Nov 5, 2010

TR-15

Project Management for Mechanical Engineers

Oct 19 –Nov 5, 2010

TR-16

Training Management

Nov 22 –Dec 9, 2010

TR-17

Information and Control Systems Utilized in Refineries

Nov 22 –Dec 9, 2010

IT-1

Turnaround and Inspection (T&I)

Nov 29 –Dec 9, 2010

TR-18

Energy Saving for Profitability Improvement

Jan 11 –Jan 28, 2011

IT-2

Petroleum Marketing and Physical Distribution

Jan 18 –Jan 28, 2011

TR-19

Quality Management of Refinery Products

Feb 8

–

Feb 25, 2011

TR-20

Inspection and Reliability Evaluation

Feb 8

–

Feb 25, 2011

TR-21

Advanced Process Control on DCS

Feb 8

–

Feb 25, 2011Marketing and Physical Distribution ofPetroleum Products, HRM

Facility Inspection

24 • Personnel Exchange Programs •–Petroleum Refining Processes

Computer and Instrumentation Control
Technologies

JCCP NEWS No. 105 October 2009

TechnicalCooperation

The Ninth Scientific Council Meeting
Held with UAE University
Since FY2001, United Arab Emirates University(UAE University) and JCCP have jointly
implemented a number of technical cooperation
projects. In FY2009, they cooperated in advancing
two ongoing projects: a project on acid gas
treatment from natural gas (Phase II), and a projecton wastewater treatment in refineries in UAE.
To exchange information on the progress of the
projects, UAE University and JCCP held the Ninth
Scientific Council Meeting at JCCP Headquarters
on May 25, 2009. The meeting is held biannually,
alternating the venue between UAE and Japan. Thistime, it was held in Japan, and attended by a totalof 16 members, with both sides equally represented
by 8 members.
Abu Dhabi Gas Liquefaction Company Limited(ADGAS) is participating in the acid gas treatment
project, and Abu Dhabi Oil Refining Company(TAKREER) is participating in the wastewater
treatment project, as technical advisors. Thanks totheir cooperation, the projects are able to go beyond
the scope of a regular academic study project, toproduce practical results that could be applied tothe oil and gas industry in UAE.

Scientiﬁc Council Meeting

Clerical meeting

JCCP NEWS No. 105 October 2009

• Technical Cooperation • 25

On the Japanese side, Nippon Oil ResearchInstitute is assisting in the implementation of the
projects, and Dr. Masaaki Teramoto and Dr. Hideto
Matsuyama of Kobe University are providing
technical guidance in the acid gas treatment
project.
In the meeting, the members reported on
the progress of the projects and held active
discussions on plans for FY2009. Both projects
were reported to be making steady progress.
In the wastewater treatment project, there areplans to examine an advanced treatment processthat uses Electrocoagulation treatment, Phenol
Biodegradation treatment and Adsorption treatment
to provide continuous treatment of wastewater inrefineries. The design of a test unit for experimental
use will also be studied. In the acid gas treatment
project, research on treatment technologies for high-pressure acid gases (carbon dioxide, sulfur dioxide)
is currently underway. Earlier in the project, sample
membrane contactors for acid gas separation weresuccessfully created, and were duly acknowledged
by Dr. Teramoto as a remarkable achievement.
Expectations of future research results also run highin the Middle East.
In addition to participating in the ScientificCouncil Meeting, the members from UAE University
completed a busy schedule during their stay in Japan
from May 23 to 28. We held a clerical meeting on
the budgets and plans of the two projects, held
discussions on details of the implementation plans,and engaged in fruitful exchanges of information forthe successful implementation of the two projects.
The Tenth Scientific Council Meeting isscheduled to be held next in November, at UAE
University in Al Ain.
<by Nobuyuki Suyama, Technical Cooperation Dept.>

H.E. Dr. Maitha Al Shamsi, UAE Minister of State (seated, right)
and Mr. Masataka Sase, Executive Director of JCCP (seated, left)

Members of the Scientiﬁc Council Meeting(members from UAE University and Japanese-side members)

26 • Technical Cooperation •JCCP NEWS No. 105 October 2009

Tidings from
Middle East

Tidings from the JCCP Middle East Ofﬁce
to the Japanese People“Life in the Middle Eastand the Local Oil Situation”
Shoichiro Yagi
General Manager, JCCP Middle East Ofﬁce
The Emirate of Abu Dhabi, where the JCCP
Middle East Office is located, is extremely
important to Japan as a supplier of one-fourth of
the total amount of crude oil that Japan imports
from abroad. I currently reside in Abu Dhabi City
to support JCCP activities in the Middle East, andwould like to introduce the oil situation here in
relation to people’s lifestyles (cars and gasoline).
Like other countries in the Middle East,
Abu Dhabi has long, hot summers, with hightemperatures even during the other seasons. A car
is therefore indispensable for commuting to work,
going shopping, or for enjoying an outing during
the holidays. However, driving a car here in Abu
Dhabi differs from driving a car in Japan, and takessome getting used to. First of all, cars drive on theright-hand side of the road, although this is really
not a problem as long as I pay careful attention atintersections. What surprised me most was the speedof traffic on general roads. For example, where thespeed limit on a general road is 60 km/hr, mostpeople drive at speeds that considerably exceedthat limit. In fact, many drive at the kind of speed
I would normally expect on a Japanese highway.
Moreover, since there are no merge lanes connecting
side roads to main roads, it takes skillful timing todirectly merge into the speeding traffic.
As shown by the graph on the next page, 75%(1.17 million) of Abu Dhabi’s total population of 1.56
million are foreigners, and only 25% (390,000) are
Abu Dhabi citizens. Due to the diverse nationalitiesof people driving in Abu Dhabi, driving manners arecertainly diverse as well, with each driver displaying
the manners of his own country. I understand thateven greater diversity is seen in Dubai, which has
an even larger population of foreigners. Given thissituation, driving on Abu Dhabi’s crowded roads
could wear out one’s nerves, unlike driving in Japan
where traffic runs smoothly thanks to everyone
displaying uniform manners.
Be that as it may, driving in Abu Dhabi can also
be fascinating, despite the wear on one’s nerves.
This is because you always find yourself driving
through beautiful landscapes. Abu Dhabi City is an
island surrounded on all sides by the sea, so it has
many coastal roads. Alongside a beautiful, emeraldgreen ocean, these roads offer an exhilarating
driving experience. In other areas, the streets are
impressively lined with date trees. The entire country
was originally desert land and had few green trees,
but Sheikh Zayed, the previous ruler of Abu Dhabi,
had greenified roadside areas using the country’s vast
wealth earned from oil. Normally, trees cannot growin arid deserts, but because Abu Dhabi is blessedwith abundant sunshine and strong sunlight, trees areable to grow verdant leaves as long as they are amply
watered every day. Therefore, vibrant green trees canbe seen throughout the year even in Abu Dhabi, inplaces that receive ample supplies of water.
On the weekends, I often take a drive with myfamily to enjoy the beautiful scenery of Abu Dhabi.
Buying a car also has its own appeal. Because Abu
Dhabi is a tax-free economy, no consumption tax,
vehicle acquisition tax, or other vehicle-related taxes
are imposed on whoever wishes to buy a car, local orforeigner alike. Another convenience to driving a car
in Abu Dhabi is the low price of gasoline. Cars here
run on 98- and 95-octane gasoline. Since the price of

JCCP NEWS No. 105 October 2009

• Tidings from the Middle East • 27

Comparison of populations in Abu Dhabi and Dubai (2008)

98-octane gasoline is as low as 40 yen/liter, we cancasually afford to take even long-distance drives. By
the way, 90-octane gasoline is also available for taxis.
These gasoline types are ADNOC’s key products,
and are somewhat extravagant, as they are produced
using high-quality condensate and Murban crude oil.
Japanese refineries import various types of crude oilfrom oil-producing countries around the world anduse them to produce same-quality gasoline, however
the difference is that Abu Dhabi, as an oil-producing
country, can produce gasoline from fewer varietiesof feedstock that are available in the country.
ADNOC Distribution, a petroleum productmarketing company under ADNOC, exclusively
operates all service stations in Abu Dhabi and sells
gasoline and diesel fuel. Note that in Dubai andthe other emirates of UAE, petroleum-marketingcompanies such as EPPCO, EMARAT, and ENOC
also provide their services in addition to ADNOC
Distribution.
Incidentally, ADNOC Distribution operates morethan 150 modern service stations throughout UAE,
which is roughly the same size as Hokkaido, with
the Emirate of Abu Dhabi claiming 87% of its total
land area (although Abu Dhabi City occupies onlyaround 0.15% of the entire emirate and the rest is
mostly desert). Yet, this is not to say that you canfind a service station most anywhere, as in the urban
regions of Japan. When taking a long drive, you needto fill your tank at any service station you happen topass by well before you run low on gas, or else you
may run out of gas in the middle of the desert andrun the risk of dehydration. ADNOC Distribution has

28 • Tidings from the Middle East •plans, however, to construct more service stations
in response to the growing demand for gasoline
and diesel fuel accompanying an influx of people
attracted to Abu Dhabi’s robust economy, which isstrongly supported by its earnings from crude oil sales
even in the wake of the global financial crisis.
Although oil consumption may be increasing in
Abu Dhabi, the emirate has abundant reserves ofcrude oil feedstock such as Murban, Upper Zakum,
and Umm Shaif, which are predicted to last aboutanother 100 years at today’s production rate. Given
its current standing, Abu Dhabi will undoubtedly
continue to be one of Japan’s most important trading
partners. At the same time, I am certain that JCCP’s
technical cooperation in such areas as the upgradingof refining technology and environmental measures
will also continue to benefit Abu Dhabi into the
future.

Mr. Shoichiro Yagi, General Manager of
the JCCP Middle East Ofﬁce (in front of a modern
service station on the outskirts of Abu Dhabi City)

JCCP NEWS No. 105 October 2009

Reference> > > > > > > > > > > > > > > > > > >The 27th JCCP International Symposium
Keynote and Special Speech Summaries“The 27th JCCP International Symposium” was held on January 28 and 29, 2009 under the theme,“Future Vision of the Oil Industry.” For your reference, we have provided below the summaries of
the keynote speech and three special speeches that were delivered at the symposium.
Mr. Nasser D. Al Mahasher from Saudi Arabia described Saudi Arabia’s three major areas of
responsibilities as the following: (1) the provision of a reliable and stable supply of petroleum toglobal markets; (2) contribution to the economic development and diversification of the Saudi
economy; and (3) operation based on commercial considerations and profitability. Mr. Vikram M.
Sampat from India stated that we need the following four factors in order to increase competitiveness:(1) business excellence regarding feedstock and products; (2) supply chain flexibility; (3) technology
innovation; and (4) environmental preservation. Dr. Fereidun Fesharaki from the United Statescautioned that the refining industry needs to be very careful in making future decisions, because
the upswing on the refining side may be “slow in coming.” Mr. Abubakr Amer Al-Saiari from Qatar
explained that Qatar will continue to work with its partners in the educational field and other fields
to further promote Qatarization and develop human resources in the energy sector.

Keynote Speech“Hydrocarbon Development in Saudi Arabia:
Maximizing Value, Maximizing Benefits”
Mr. Nasser D. Al Mahasher
General Manager, Saudi Petroleum, Ltd.
At Saudi Aramco, the notion of a “tripod”
encapsulates the company’s three major areas of
responsibilities. These are: first, the provision ofa reliable and stable supply of petroleum to global
markets; second, contributions to the economic
development and diversification of the Saudi
economy; and third, operation based on commercial
considerations and profitability.
The understanding that we must strive tosimultaneously fulfill each of these objectives
means not only striking a balance between
meeting domestic energy needs and supplying

global markets, for example, but also seeking out
opportunities which contribute to all three goals.
In the upstream sector, we will achieve a massive
1.2 million barrel per day production capacity
addition later this year. This includes some 1.5
million barrels a day of spare capacity.
Further downstream, the company is engaged ina series of refinery expansions and the developmentof grassroots refining facilities, in conjunction
with partners both at home in the Kingdom andabroad. In addition to the PetroRabigh joint
venture with Sumitomo Chemical, we are also

JCCP NEWS No. 105 October 2009

• Reference • 29

applying the integrated refining-petrochemical
model in China’s Fujian Province, in conjunction
with SINOPEC and ExxonMobil. At Ras Tanura
Refinery, we are working with Dow Chemical on
the Ras Tanura Integrated Project for constructionof a large petrochemical complex. While these
integrated facilities help us increase profitability anddiversify the product portfolio in the Kingdom, theprojects also provide additional benefits to the local
economy. These include new job opportunities for
local investors and a hub for the growth of domestic
industrial clusters.
While the current global economic downturn
has impacted the short-term commercial outlook
for some of these projects, these initiatives were
designed with a long-term vision. We are well awarethat these facilities will have to be profitable overthe next several decades, not just over the next year
or two, and we believe the fundamentals of thesevarious downstream projects remain strong.
Of course, the ability to see these projects throughhinges upon the abilities, skills and dedication ofindividuals and teams hard at work in all partsof the business. That in turn requires proactive
human resources development efforts and a slateof educational programs. Our human resource
efforts also include developing a corporate culturethat encourages self-development by employees, acommitment to lifelong learning, and an innovative
approach to business and operational challenges.
The emphasis on people and their development
will continue, and the company will continue toinvest significantly in the men and women who callthemselves “Aramcons.”
To tackle all of the challenges and opportunities
we face, we are working with a wide range ofbusinesses and institutions related to energy,
such as other oil companies; specialized oilfield
service firms; leading petrochemical corporations;engineering, procurement and construction
contractors; advanced research laboratories; anduniversities and educational institutions. I take anenormous degree of satisfaction from the fact thatso many of those business partners and related
institutions are based here in Japan.
Petroleum is a plentiful but an ultimately depleting30 • Reference •Mr. Nasser D. Al Mahasher
General Manager, Saudi Petroleum, Ltd.

resource, and at Saudi Aramco we are working hard
to maximize the value of the Kingdom’s precioushydrocarbons to fulfill our obligations in each areaof our strategic tripod.
Today, we are witnessing what many analysts
are terming the most serious worldwide economic
downturn in generations. Major developed
economies are in the midst of a recession, growthhas flagged in the developing nations, and someof the world’s best-known financial, industrial andcommercial enterprises have been laid low. The
current crisis is certainly remarkable not only forits severity but also for its widespread scope. Thoseof us working in the petroleum industry have seen
the effects of the slowdown firsthand, with sagging
demand and crude oil prices which are roughly athird of the levels we saw last summer. Moreover,funding for major projects has become scarcer due
to lower revenues and tighter credit markets.
However, at Saudi Aramco we believe it isimperative to look beyond the short-term volatility
in both the global economy and the oil markets,
and we understand that the long range prospects
for energy in general remain robust. The world’s
population will continue to grow, and as standardsof living in the developing world continue to rise, so
will demand for energy in general, and in particularfor petroleum.
While short-term cost containment andreexamination of activities and projects is certainly

JCCP NEWS No. 105 October 2009

in order given the current economic crisis, wemust not lose sight of the long-term needs andopportunities for petroleum. That is why intelligent,targeted, and selective investments all along thepetroleum value chain are so essential, and why thedecisions that will be made across our industry in
the next year or two will be so critical.
On the upside, crises always bring opportunities.
Forward looking companies will be able to position
themselves for even greater success once the global
economy recovers, if they continue to look at the
big picture and the next decade or two, rather
than focusing on just the next quarter or two. On
the downside, there is a risk that underinvestment
in vital infrastructure today will result in supply
shortfalls and tight petroleum and refining markets

tomorrow, once demand recovers, as it inevitably
will.
When I look to the long-term trends for energy
and petroleum, I remain bullish on the prospects
for the global oil industry, and feel privileged tocontinue playing the liaison role between Saudi
Aramco and the hydrocarbon industries in Japan
as well as in this part of the world.
My message to you this year is A-un no Kokyu.
A-un no Kokyu means that people are on thesame wavelength when they are doing something
together, a relationship people can communicate
without gestures or words, anticipating each other’s
movement. Ladies and gentlemen, let us endure
together and overcome the current difficulties for ourbright future through the spirit of A-un no Kokyu!

Special Lecture 1 (India)“Challenges in Oil Refining”
Mr. Vikram M. Sampat
Vice President, Reliance Industries Limited
The global market is experiencing tough times.
Because of the recession, demand is decreasing,crude prices are falling, and operating rates aregoing down. However, this is, in our view, a shortterm trend. When the tide turns again, crude prices
will rise. Today, our challenge lies in making ourrefineries sustainable and more competitive during
the next three or four years.
An issue in the refining industry is that whilecrude oil is becoming heavier and more difficult
to process, the market demands good-quality fuel,such as ultra-low-sulfur diesel and ultra-low-sulfur
gasoline. On one hand, we have tougher crude,and on the other hand, we desire better products
and want to reduce greenhouse gas emissions. In
Europe, diesel has become a more preferred fuelto gasoline. In the Middle East and India, there
are trends to produce more petrochemicals fromrefining products. These trends show that we mustrefine our oil more competitively if we are to survive
in this system.

There are a number of challenges regarding
competitiveness. The first challenge is in addressing
fuel oil and naphtha. Both have low margins, soanybody making fuel oil and naphtha is in fact
destroying value in the refinery.
The second challenge lies in the fact that themarket has become extremely volatile. Previously, we

Mr. Vikram M. Sampat
Vice President, Reliance Industries Limited

JCCP NEWS No. 105 October 2009

• Reference • 31

hardly used to see any changes in oil prices, but today,
prices are changing 3 to 4 dollars in one day. Prices
have become extremely volatile and, in turn, are also
making demand volatile. Therefore, our challenge
is in whether we can work together to increase ourcompetitiveness in this volatile scenario.
The last challenge is the environment, andwhether we can conserve our environment. This is
not about future generations. I am talking about ourown generation. If we do not protect the environment
today, we will not be able to lead a good life in fiveor seven years’ time.
These are the major challenges facing therefining industry. What we need to do in responseto these challenges is to firstly make a shift from theproduction of gasoline to diesel fuel. Then, we must
increase heavy crude processing capacity. If fuel oil
and naphtha margins are low, we should eliminate
fuel oil and naphtha from our products slate. If themarket is becoming increasingly volatile, we needto make our supply chain more robust so that we
can manage this increased volatility. In regard toenvironmental concerns, we need to produce clean
fuels, or use less fuel to produce clean fuels.
To increase competitiveness, we must consider
four factors. First of all, we need business excellence
regarding feedstock and products. Secondly, weneed supply chain flexibility; thirdly, technology
innovation; and lastly, environmental preservation.
Heavy crudes are in abundance, and lightcrudes are declining. Therefore, we must consider
whether our refineries can process heavier crudes,
and whether our refineries have the flexibility toprocess difficult crudes to make good products.
The answer lies in improving bottom processing
technology, so that our refineries can process all
grades of crude and minimize bottom oil. Fuel oil
and naphtha are priced lower than crude oil, but wemust do something about this. We must use crude
oil more efficiently, or in other words, increase thenumber of good-quality products that are produced
from crude oil.
Similarly, we need to maximize the high-value
products of the refinery. The world will not accept
poor-quality products. We must consider what weneed to do to respond to demands for good-quality

32 • Reference •products. We could increase middle distillates andpetrochemical products. We could produce morediesel fuel in place of gasoline. We could minimize
the production of fuel oil and naphtha. Lastly, we
could consider using bottom oil by introducing
gasification or cryogenic recovery.
The same applies to fuel gas. If fuel gas is being
burned without recovering the good products it
contains, we should think about recovering those
products by cryogenic recovery. Now is the time
to make this investment. We cannot shut down
facilities for renovation when plants are running atfull capacity. Therefore, I strongly believe now is
the right time. We need to extract maximum value
from the crude barrel.
Let us now look into the supply chain. On the
supply chain side, we are facing extreme volatility.
The first thing we need to do is decrease inventories
to the minimum to reduce our exposure to volatility.
The second is to properly manage whatever
inventory cannot be reduced and lower our risk asmuch as possible. The third is to be flexible. Bylending flexibility to the supply chain, we can adapt
and survive any environment. If we can do that, I
believe we could increase our competitiveness.
We are at a time where we need technology
leaders to take up new challenges. In particular, as
an industry we need to develop technologies relating
to catalysts, equipment materials, and refining
processes. Even when we seek the same results,
we should try to achieve them with less energy.
Moreover, if we improve equipment materials, weshould be able to produce lighter vessels that take upless space. We face many challenges in technology,
but the bottom line is that technology innovation is
crucial to maintaining the competitiveness of therefining business.
Environmental preservation is also very important
to us. Global warming is occurring throughout theworld, and environmental preservation is no longer
an issue for the next generation. As a large emitterof carbon dioxide and as an industry with a large
carbon footprint, I think the refining industry
has a responsibility to develop technologies for
reducing carbon emissions. We need to fully utilize
energy-saving technologies and carbon capture and

JCCP NEWS No. 105 October 2009

sequestration technologies. These efforts are calledgreen refining. I think all of us here have an onus
to not only go competitive but also to go green in
our refining initiatives.
In conclusion, I want to say that we must utilize
the recessionary pause to strike a correct balance
between energy and ecology in refining. We must
upgrade our refining assets at this time to maximize
production. Furthermore, we must shut down

refineries which are not meeting the minimum
efficiency and ecology standards of the industry,
because they cannot survive if they do not meetthese standards.
Refineries are coming to play an increasingly
important role. Various alternatives will emerge, but
the role of refineries will not disappear. In fact, I think
this conference has provided an ideal starting point
for the transformation of the refining business.

Special Lecture 2 (USA)“Refining in the East of Suez Market:
Impact on Product Flows”
Dr. Fereidun Fesharaki
Chairman, FACTS Global Energy
I have had the chance to come to Japan often
since 1985 when the Japanese oil industry lookedvery different. Based on this experience, I will
try to offer you a helicopter view from 10,000
meters upwards to give you a view of how I think
the refining industry in this part of the world ischanging. I will also share with you my view ofthe developments in Asia Pacific and in the Middle
East.
Firstly, we need to understand the interrelationshipbetween global GDP and oil demand. In 2007, oil
demand grew, albeit not by much. In 2008, oil

Dr. Fereidun Fesharaki
Chairman, FACTS Global Energy

demand was still positive. In 2009, it was slightly
negative, but altogether, from 2007 through to 2009,
demand was about the same, and it is not as though
we have had a crash in demand by any means. What
we have had is an input of supplies from OPEC andnon-OPEC countries assuming that there is growth
where there was none. In other words, the droppingof oil prices so hard and so fast was not the result ofa demand crash. Demand has been the same, thoughof course, it had fallen in some places and had been
compensated for in other places.
Next, I wish to talk about the likely demand
pattern between 2007 and 2015. The world has
become three major poles: China and the countriesof the Middle East are displaying growing demandas new consumption countries; India is following
behind, though at a distant third. Fundamentally,
these three poles will account for an extremely large
growth in demand for oil in the future.
East of Suez, China and India are increasing theirrefining capacity. Large capacity additions havealso been seen in Iran, and smaller additions in Iraq
and Kuwait. Oman, Qatar, and UAE are planningto make capacity additions. Saudi Arabia has four
projects on board. Not all of the projects will go
through, however, because some of these export

JCCP NEWS No. 105 October 2009

• Reference • 33

refineries may not be essential to the country. They
are intended for the United States and European
markets, and designed to produce extremely highquality material using full conversion facilities.
Some of the projects may go through, but others may
be delayed. I am convinced that the United States
and the European markets will soon be saturated tothe point where they would lose money and would
need to shut down large numbers of refineries, andthere would be no point in sending something new
to them.
If everybody makes an investment in the scopeof current wisdom, something will go wrong.
Everybody will follow one line and create too much,or acquire too much conversion capacity. The market
will achieve a certain balance after a while, but inthe short term, there would be a situation where
everybody rushes to produce one thing because they
think that is where the profits are, only to find those
profits disappear when they get there, because too
many people have gone the same way.
In 1998, there was a good balance between AsiaPacific net imports and Middle East net exports.

What Asia needed, the Middle East supplied.
Thus, it was a reasonably good balance. However,in 2010, the balance will become difficult, witheveryone becoming an exporter. Asia is an exporter.
The Middle East is trying to expand exports. To
survive, Asia, including India, has to export to theUnited States and Europe, and the Middle East has
to expand exports or stop building more refineries.
Not building more refineries is certainly a scenario
worth considering. We need to take the time to think
what it is that we really need to do. Things may bebetter at a later time, but the timing issues are very
important.
I have observed the Middle Eastern and Asianmarkets for 30 years, and have seen various cycles.
It has been a repeat of a good five, six years followed
by a bad five, six years, but is this pattern going tocontinue repeating itself? It might not, in the future.
Gasoline demand may change, because whether in
the United States, Europe, or Japan, hybrids andelectric cars are rapidly emerging. Altogether, weneed to be very careful, because the upswing on therefining side may be slow, or may not come at all.

Special Lecture 3 (Qatar)“Reengineering of Human Resource
Development”
Mr. Abubakr Amer Al-Saiari
Liaison Coordinator, Human Resources, Qatar Petroleum
In Qatar today, we are seeing a lot of development
in various industrial sectors including oil and naturalgas. One of the most difficult things to develop,
however, is human resources, which we have foundis our responsibility, along with our partners in theenergy industry. Therefore, I am going to share withyou today the steps and the mechanisms we haveapplied since launching a nationalization plan in
Qatar, or Qatarization plan, in May 2000.
Qatarization is the identification of developmentof competent Qataris in universities and secondary
schools and placing them in permanent posts, so
34 • Reference •that eventually 50% of the workforce in Qatar’s coreenergy industry will be Qatari men and women.
In order to achieve this goal, it is not sufficient tosimply hire people fresh out of secondary schools oruniversities and provide them vocational training.
Quality improvement is more important. Quality is
a must, because our international partners focus on
investment performance.
Each company must align its business plan with
the Qatarization plan. This is because the energy
industry is expanding, and the industry is becoming
ever more multi-national. We feel it is important to

JCCP NEWS No. 105 October 2009

share knowledge and technology among the diverse
nationalities and our people, and to prepare Qataris
to manage business through training and knowledgetransfer.
Developing the Qatari workforce is an investment
for the future. We have formed competency
Qatarization committees and support educational
institutions. However, it is not just for the sakeof promoting the recruitment of Qataris. We areplanning the best recruitment, the best training andthe best development mechanism to develop ourcountry, and all Qataris are asked to cooperate andto share in that responsibility.
The Qatarization plan began with the participationof 18 domestic energy companies in 2002. There
are now 38 companies. These companies not only
do business in Qatar, but they believe in making
a contribution to society. That is, they invest in
developing the Qatari workforce.
For example, building a refinery could takemaybe three years from conducting a feasibility
study to commissioning the refinery, but it would
take three times that same amount of time to develop
the necessary manpower. Though it may take time,each company understands the significance ofdeveloping outstanding Qataris, and cooperates inproviding Qataris opportunities to participate inprojects and accumulate practical experience.
The objective of the Qatarization plan is todevelop outstanding Qataris and to retain them inkey positions in the energy industry, not training
posts. We are working on three levels to achieve
this objective. At the corporate level, each company
has its own strategy of recruiting Qataris. At the
department level, each department has its own
strategy of training Qataris. Then at the individuallevel, we have various individual programs and
OJT programs for career enhancement. In otherwords, we have a mechanism for providing the best
recruitment, the best training, and the best career
progression to retain stable manpower.
Each company is required to report theirachievement of the Qatarization plan twice a year
to the Minister of Energy and Industry. We use anadvanced information system called QIS (Qatar
Information System) to manage the reporting

Mr. Abubakr Amer Al-Saiari
Liaison Coordinator, Human Resources, Qatar Petroleum

procedure and all the information obtained from the
38 participating companies via IT. The companies
also present an annual review of their Qatarization
plan to the minister. Through this review session
headed by the minister, the companies assess
potential obstacles to management and discuss how
to overcome those issues.
Under the Qatarization plan, we have 850
students studying at overseas and local universities
at present. Last year, 700 students participatedin a summer internship in the energy industry in
response to a massive recruitment campaign. To
accommodate the increasing number of Qataris
in the industry, we have reinforced our training
facilities in Ras Laffan, among other locations.
Since launching the Qatarization plan, we haverecruited more than 8,000 Qataris, and have also
increased the number of women in the workforce.
More than 800 women are now working in various
fields in the energy sector.
As a result of launching the Qatarization plan,
we have increased awareness of Qatarization,
made a transition in the training and developmentof Qataris, have begun to retain Qataris in theworkforce in the energy sector, and have enhanced
education programs. We will continue to work with
our partners in the educational field and other fields,
and to align various programs with our needs, tofurther promote Qatarization and develop humanresources in the energy sector.

JCCP NEWS No. 105 October 2009

• Reference • 35

Personnel Changes
Outgoing Personnel

Incoming Personnel

Katsuo YOKOYAMA

Morihiro YOSHIDAManaging
Director

Training
Department

Katsuo KIRITA

Riyadh Office

Toshimi KINOSHITA

Kenji NITA

Japan Cooperation Center, Petroleum (JCCP)
Headquarters
Sunshine 60 Building 58F, 3-1-1 Higashi-Ikebukuro, Toshima-ku, Tokyo 170-6058, Japan• Administration Department• Operations Department• Training Department• Technical Cooperation Department

TEL. +81-3-5396-6000
TEL. +81-3-5396-6001
TEL. +81-3-5396-6909
TEL. +81-3-5396-8021

FAX. +81-3-5396-6006
FAX. +81-3-5396-6006
FAX. +81-3-5396-6006
FAX. +81-3-5396-8015

Overseas Ofﬁces• Middle East Ofﬁce#904, Al-Ghaith Ofﬁce Tower, Hamdan St.,
P.O. Box 51828, Abu Dhabi, U.A.E.
TEL. +971-2-627-4410 FAX. +971-2-626-2166

URL: http://www.jccp.or.jp

36 • Announcement •• Riyadh Ofﬁce
Al-Dahlawi Building, King Fahad Rd., Tahlia St., Olaya,
P.O. Box 61356, Riyadh 11565, Kingdom of Saudi Arabia
TEL. +966-1-462-5121 FAX. +966-1-461-0983

E-mail: webmaster@jccp.or.jp

JCCP NEWS No. 105 October 2009