JCCP NEWS
Newsletter of Japan Cooperation Center, Petroleum

TopicsNo. 97
August 2007

Ceremony Heldin Commemoration of

In this issue:
TopicsCelebration of KISR/KNPC/JCCP
Joint Projects

1

Mr. Nima from Iraq’s Ministry ofPetroleum Visits Japan
5
ES/ST Promotion Team Visits
Kuwait and Qatar

7

Int’l Joint Research Program
Receives Noguchi Memorial
Award

9

Contract Signing with
Saudi Aramco

10

Contract Signing with KFUPM

11

Contract Signing with BORC

12

Signing Ceremony with SQU

13

FY2006 Downstream Survey

14”Collaboration Between
Kuwait and Japanin Celebration of
KISR/KNPC/JCCP Joint
Projects and Other Activities
Related to the Oil Sector”

Personnel Exchange Programs

Online Analyzer Course(TR-1-07)

17

TC Program in Iran, Oman,
and UAE

20

Participant’s Voice23

JCCP Regular Courses CompletedApril – June 200725
Technical Cooperation

MOA Exchange with EORC

27

5th Scientific Council Meetingwith UAE University

27

Reference

Overview of the FY2006
Downstream Survey

29

Announcement

Personnel Changes

32

Ceremony venue

Kuwa it a nd Japa n have long
maintained friendly relations since theestablishment of Kuwait Institute for
Scientific Research (KISR), a national
research laboratory in Kuwait. JCCP
has so far received approximately 300
Kuwaiti participants to its training
courses since its establishment in
1981, and in recent years, technicalcooperation projects implemented in

JCCP NEWS No. 97 August 2007

Kuwait have been producing steadyresults, particularly in the areas of heavy
oil processing technologies, technologies
for inspection and management of oil
refinery facilities, and environmentfriendly technologies. Based on thoseresults, JCCP had been seeking an
opportunity to further strengthen ties
between the two countries, together
with the oil industry in Kuwait, when

• Topics •VIP room

it received a proposal by Kuwait toorganize a ceremony in celebration of
JCCP technical cooperation projects
and other JCCP-Kuwait joint projects
that have been implemented to datein the field of science and technology.
Thus a commemorative ceremony cameto be held jointly by JCCP, KISR, andKuwait National Petroleum Company(KNPC).

(From the left) H.E. Shaikh Ali Al-Jarrah,
Minister of Oil, Mr. Hiroyuki Yamamoto,Chargé d’Affaires of Japan, andMr. Mikio Kojima, Executive Directorof JCCPOn May 26, 2007 (Sat.), JCCP
proudly hosted the JCCP-Kuwait
c o m m e m o r a t i ve c e r e m o n y, i n
cooperation with KISR and KNPC,
in celebration of JCCP activities thathave been implemented in Kuwait
over the years. The ceremony washeld at the Radisson SAS Hotel in
Kuwait, in the Al Hashemi II Hall, amajestic conference room designed in
the image of a huge dhow ship (seeNote 1). Almost all prominent figuresin Kuwait’s oil industry attended the
ceremony, including H.E. Shaikh
Ali Al-Jarrah, Minister of Oil, Mr.
Saad Al-Shuwaib, Acting Deputy
Chairman & CEO of Kuwait Petroleum
Company (KPC), Mr. Sami Fahed
Al-Rushaid, Chairman & Managing
Director of KNPC, and Dr. Nader
Al-Awadhi, Acting Director Generalof KISR. From Japan, 39 members
attended the ceremony, including Mr.
Hiroyuki Yamamoto, Chargé d’Affairesof Japan, Mr. Kazuki Hondou, Director
in the Ministry of Economy, Tradeand Industry (METI), representatives

from companies implementing JCCPKuwait projects, Mr. Mikio Kojima,
Executive Director of JCCP, and Mr.
Junichi Hatano, Managing Directorof JCCP. With a total attendance ofas many as 150 guests, the ceremony
was an extremely grand and formal
event that demonstrated the strong andfriendly relationship between the twocountries.
Before the opening of the ceremony,
the guest dignitaries were formallyreceived in a stately VIP room preparedspecially for them, and a reception washeld for other guests in an elegant hall,brilliantly illuminated by a sparklingchandelier. After enjoying a momentto take in the joyful atmosphere of
the ceremony, all guests moved into
the main venue, a grand ballroom

H.E. Shaikh Ali Al-Jarrah,
Minister of Oil

Mr. Hiroyuki Yamamoto,Chargé d’Affaires of JapanMr. Sami Fahed Al-Rushaid,
Chairman & Managing Director of KNPC

1. Overview of the Ceremony• Topics •JCCP NEWS No. 97 August 2007

Dr. Nader Al-Awadhi,
Acting Director General of KISR

Mr. Kazuki Hondou, Director of METI

Dr. Meena A. Marafi, Manager of KISR

which easily accommodated a seating
arrangement for 200. The ceremony
opened with speeches delivered by guest
dignitaries. Following H.E. Al-Jarrah,
Minister of Oil, the other dignitaries
each took the podium in turn. They
reconfirmed the friendly relationship oftechnical cooperation between Kuwait
and Japan, emphasized the significanceof JCCP activities, and expressed theirhopes and expectations of building
stronger cooperative ties in the future.
The ballroom filled with applauseafter each speech, as the audienceacknowledged the achievements oftechnical cooperation projects basedon JCCP initiatives and strengthened
expectations of future collaboration. In
this respect as well, the ceremony had
great meaning.
Following the speeches, Dr. Meena
A. Marafi, Manager of KISR, usedslides to give an overview of scientificand technological cooperation projects
jointly implemented by Japan andKuwait to date, focusing on training
courses, technical cooperation projects,
and science and technology seminars
and symposiums. She reaffirmed KISR’scommitment to addressing oil-related
issues confronting Kuwait today incooperation with Kuwaiti oil companies,and concluded her presentation by
expressing great expectations in JCCP
activities as an international schemeof cooperation that would contributeto further strengthening relationshipbetween Kuwait and Japan.

Toward the end of the ceremony,
the Kuwaiti Ministry of Oil, KNPC,
and KISR exchanged commemorative
gifts with the Embassy of Japanin Kuwait, METI, and JCCP, thenproceeded to another room wherebanquet preparations were made. A slide
show introducing JCCP activities wasshown in the background, as people took
the opportunity to enjoy each other’scompany, and the ceremony eventuallydrew to a successful close.
News of the ceremony appearedin the following morning’s edition ofseveral local newspapers. The media

exposure not only promoted deeper
understanding and recognition of
JCCP activities in Kuwait, but it also
indicated Kuwait’s large expectationsof JCCP activities. In response to those
expectations, JCCP will make greater
efforts than ever before to maintaining
the friendly relationship with Kuwait,
through training courses and technicalcooperation projects.

2. Achievements of JCCP
Projects in Kuwait
JCCP has implemented the following

Mr. Mikio Kojima, Executive Director of JCCP

JCCP NEWS No. 97 August 2007

• Topics •technical cooperation projects with
Kuwait, mainly in the oil downstream
sector, with the cooperation of KISR,K NPC and Kuwait Oil Company(KOC).
1) Development study of residuehydrocracking to distillate in KNPCARDS (see Note 2) units
2) St udy on hyd rogen cor rosion
countermeasures for oil refining
facilities in Kuwait3) Hydroprocessing of residual oilof Kuwait heavy crudes for the
production of low-sulfur fuel oil
4) Direct upgrading process study of
Kuwait crude oils5) Study on large-scale productionof soil sulfur amendments and its
implementation
6) Research on effluent water treatment
facility for crude oil
The results of the above projects
have been highly evaluated by Kuwait,
and some of the technologies havebeen introduced to new refineries in
Kuwait.
With respect to training courses,
JCCP has received approximately 300
participants from Kuwait Petroleum
Company (KPC), KNPC, and KISR.
Having acquired sufficient knowledge
through the courses, many of themplay an important role in Kuwait’s oil
industry today.
JCCP is also working to strengthen
human interactions by holding seminars
and regular forums of informationexchange.
Based on these achievements, JCCP
will continue to implement efficient

Exchanging of commemorative gifts

Banquet venue

and effective activities in Kuwait, withan aim to strengthening its significant
relationship with Kuwait.
Finally, JCCP would like to thank
KISR, KNPC, guests who attended the
ceremony, and JCCP affiliates, for all

their cooperation and effort in making
the ceremony a great success, and would
like to ask for everyone’s continuous
support of JCCP activities.
<by Yuji Ishii,
Technical Cooperation Dept.>

Notes:
1. A dhow is a traditional Arab wooden sailing ship. It has a large lateen on one or
two masts, and is assembled with cord and tar, without using any nails. It was,and is still, primarily used along the coasts of the Arabian Peninsula, India, andEast Africa, though many are now outfitted with a motor.
2. ARDS = direct desulfurization unit

The dhow ship at the Radisson SAS Hotel• Topics •JCCP NEWS No. 97 August 2007

Topics

Mr. Fayadh Hassan Nima from
Iraq’s Ministry of Petroleum
Visits JapanThe JCCP VIP Invitation Programprovides a framework for JCCP to
hold policy dialogues with leadersof oil-producing countries, build
relationships based on trust, and promote
understanding of JCCP activities. Due tovarious circumstances, the program had
been dormant since June 1999, but thisspring, JCCP has re-implemented theprogram for the first time in eight years,
and invited Mr. Fayadh Hassan Nima,
Director General of Studies, Planningand Follow-up of the Ministry of Oil,Iraq, to Japan.
Mr. Nima holds an extremely
important position in the Ministry of Oil,Iraq, as the Director General responsible
for planning the reconstruction of thecountry’s oil industry, even amidst
the continuing state of unrest in thedomestic situation. JCCP had previously
requested Mr. Nima’s participation in
the 2005 and 2006 JCCP International
Symposiums as a guest speaker. Mr.
Nima had generously accepted bothtimes, but the state of affairs in Iraq atthose times prevented him from actually
making the trip to Japan. This time,
however, JCCP’s long-sought visit by
Mr. Nima has finally been realized.
Mr. Nima arrived in Japan on
April 4, while the cherry blossoms
were still in bloom. On the following
day, he met with Mr. Mikio Kojima,
Executive Director of JCCP, and Mr.
Junichi Hatano, Managing Directorof JCCP, and discussed prospects forrehabilitating the oil industry in Iraq. Mr.
Nima emphasized that the developmentof excellent managers, engineers, andother human resources is a priority
issue that can only be effectively
addressed with JCCP’s cooperation. In
response, the JCCP leaders reaffirmed
the significant role of Iraq to Japan as

Mr. Fayadh Hassan Nima, Director General of Studies, Planning andFollow-up of the Iraqi Ministry of Petroleum (center),with Mr. Akihiko Tenbo, President of Idemitsu Kosan, Co., Ltd. (second from left)
and Mr. Akira Idemitsu, President of JCCP (second from right)

an oil-producing country, and promised
to support reconstruction in Iraq to thegreatest extent possible.
After receiving a brief introductionof JCCP activities, Mr. Nima toured
JCCP’s training facilities. He expressedstrong interest in JCCP training
activities because, as he mentioned
earlier, the development of outstanding
human resources in management andin the engineering field is a particularlypressing issue in the rehabilitation of
Iraq’s oil industry. The JCCP leaders
have proposed t he a r ra ngementof another meeting to discuss theframework of future cooperation, basedon JCCP training programs.
In the afternoon of the 5th, Mr.
Nima delivered a presentation entitled“The Present and Future of Iraq’s Oil
Industry.” The lecture was attended by
H.E. Ghanim Al-Jumaily, Ambassador

JCCP NEWS No. 97 August 2007of the Republic of Iraq in Japan, and some
50 visitors from oil-related companies inJapan, despite the short notice.
Mr. Nima’s presentation offereda good glimpse into the general stateof the oil industry in Iraq, which had
remained largely unknown to Japan, andprovided a basis upon which to explore
possibilities of future cooperation by
JCCP, as well as by Japan’s oil industry
as a whole.
On the 6th, Mr. Nima met with Mr.
Yoshiyuki Iwai, Director-General of the
Natural Resources and Fuel Departmentof the Agency for Natural Resources in
the Ministry of Economy, Trade andIndustry, Mr. Akira Idemitsu, Presidentof JCCP, and Mr. Akihiko Tenbo,
President of Idemitsu Kosan, Co., Ltd.
He also visited and exchanged views
with leaders of other oil companies andorganizations, such as the Japan Oil,

• Topics •With Mr. Mikio Kojima, Executive Director of JCCP (right), andMr. Junichi Hatano, Managing Director of JCCP

Gas and Metals National Corporation(JOGMEC) and Nippon Petroleum
Refining Co., Ltd.’s Negishi Refinery.
As Mr. Nima’s visit coincidedwith the visit to Japan by Iraq’s Prime
Minister Nouri al-Maliki and Oil
Minister Hussain al-Shahristani, on
April 9 and 10 he joined Prime Minister
al-Maliki and his entourage in attending
a conference with leaders of the Japanese
government.

With Mr. Yoshiyuki Iwai, Director-General of
the Natural Resources and Fuel Department of the
Agency for Natural Resources, METI

Though his visit spanned only a shortten days, Mr. Nima built a foundation for
future JCCP activities in Iraq, as well as
strengthened relations between Iraq andJapan through the series of meetings heheld with leading figures in Japan.
To JCCP, Mr. Nima’s visit wasalso significant in that it reaffirmed
the important role of the JCCP VIP
Invitation Program in strengthening
relations between Japan and oil-producing countries. JCCP would
like to take this opportunity to thankeveryone who have cooperated with theprogram and generously took the time
to meet with Mr. Nima, despite theshort notice.
We hope Mr. Nima’s recent visit will
act as a catalyst for building stronger
bonds of cooperation between Iraq andJapan.
<by Koichi Yokosuka,
Operations Dept.>

H.E. Ghanim Al-Jumaily, Ambassador of the Republic of Iraq inJapan, attending Mr. Nima’s presentation

Presentation by Mr. Nima• Topics •JCCP NEWS No. 97 August 2007

Topics

ES/ST Promotion Team Visits
Kuwait and Qatar
From April 22 to 27, 2007, two JCCP
members, Mr. Shigeyoshi Takahashi,
Training Dept., and Mr. Koji Hori,
Operations Dept., visited Kuwait
National Petroleum Company (KNPC)
and Qatar Petroleum (QP) to promote
Expert Service (ES) and Study Tour (ST)programs. As a result of discussions,
JCCP and KNPC reached an agreement
to implement two ES programs andone ST program, and JCCP and QP,
one program each, during FY2007.
Although the GCC countries are highpriority counterparts of JCCP activities,
only one ES/ST program has been heldin the GCC countries as a whole, since
FY2000. Therefore, the agreementswith KNPC and QP represent extremely
significant achievements. Details of
the background to the recent visits andmeetings are presented below.

At the KNPC Head Office, HR Department:
Mr. Waleed Al-Hamad, Assistant Manager (back row, center);Mr. Ali Abdulla, Team Leader (back row, left); and
Ms. Ghaida Al-Awadhi, Senior CD Specialist (front row, right)

1. BackgroundAs introduced in JCCP NEWSissue No. 96, Mr. Mikio Kojima,
Executive Director of JCCP, visited
Kuwait and Saudi Arabia in January
2007, and met with Mr. Sami Fahed
Al-Rushaid, Chairman & Managing
Director of Kuwait National Petroleum
Company (KNPC), and Mr. Abdulaziz
F. Al-Khayyal, Senior Vice President,
Refining & International of Saudi
Arabian Oil Company (Saudi Aramco).
In the meetings, Mr. Kojima proposed
the implementation of tailor-madecourses that would contribute tofurther strengthening the cooperative
relationship between JCCP and the twocompanies, and received full agreementfrom the two leaders. In fact, Mr. Kojima
and Mr. Al-Rushaid agreed to dispatch
a JCCP working team to KNPC to holdfurther discussions by April 2007.
The objective of the recent visits

made by the ES/ST promotion teamwas to hold working level negotiations
regarding the proposal. With respect to
Saudi Aramco, however, negotiations
were postponed to a later opportunity,
because the refinery staff were notavailable, due to shutdown maintenance(SDM). Qatar was selected as anotherdestination, as it is one of JCCP’s
priority countries, and has been actively
participating in JCCP programs formany years.

2. Overview of Discussions at
KNPC
A meeting was held at the KNPC
Head Office on April 24, with theattendance of 15 KNPC members,
including Mr. Waleed Al-Hamad,
Assistant Manager, Mr. Ali Abdulla,
Team Leader, and Ms. Ghaida Al-

JCCP NEWS No. 97 August 2007

Awadhi, Senior CD Specialist, fromthe Human Resources Department, and10 representatives from KNPC’s threerefineries. Having reviewed JCCP’s
proposal in advance, they welcomed
the promotion team with strong interest.
They listened to the team’s explanationof the background and purpose of thevisit and details of the proposal with anopen mind, and responded with forwardlooking questions and opinions.
During the meeting, the KNPC
side stated that it would need to makeadjustments of priorities among KNPC’s
requirements. However, owing to
the hardworking efforts of KNPC
personnel in the HR Department, thefollowing programs have been selected
for implementation.
•<ES> Energy Saving in Refinery:
October 2007

• Topics ••<ES> Advanced Process Control;
October to November 2007•

<ST> Energy Saving in Refinery;
February to March 2008

It can be said that the basic agreement
made between Mr. Kojima and Mr. AlRushaid in January provided strong
impetus not only to the success of themeeting, but to the attendance of as
many as 10 representatives from threerefineries, despite the fact that themeeting was held in the middle of the
day on a weekday.

At the QP Training Center, Career Development Department:
Mr. Abdulla Al-Sahlawi, Corporate Training Manager (center right);
Mr. Hamad Al-Thani, Head of Professional Training (second from left); andDr. Barak Yehya, Assistant Manager (left)

3. Overview of Discussions
at QP
On April 26, the JCCP promotion
team departed from their hotel at 7
a.m., and headed for the Mesaieed
Refinery, the sole refinery in Qatar,escorted by Mr. Hamad Al-Thani,
Head of Professional Training, andDr. Barak Yehya, Assistant Manager,
Training Strategies, from the QP
Career Development. Five officers,
including Mr. Nasser Al-Emadi, Headof Operations, welcomed the team to
the refinery.
After receiving a presentation on theoverview of the Mesaieed Refinery, the
JCCP team explained the purpose of
their visit and details of JCCP’s proposal.
As the refinery members had alreadyreviewed the proposal in advance,
they responded positively to the team’s
explanations of tailor-made courses. As
a result, the following courses have been

selected for implementation.

4. Summary•Thanks to the cooperation of thestaff of both KNPC and QP, the ES/
ST promotion team achieved positive
results from discussions with the twocompanies. Among the successfulachievements were that JCCP’s newpolicy of providing tailor-made courses
obtained the understanding of thepriority countries; that specific detailsof the proposal JCCP had sent to thecompanies in advance were reviewed
favorably; and that relevant parties
were able to discuss important mattersface-to-face. Hereafter, JCCP hopes
to create opportunities to also holddirect discussions with other priority
countries.
Lastly, it should be mentionedthat the JCCP team was accompanied
throughout the trip by Mr. Takashi
Kikuchi, Advisor to the Oil and Gas
Technical Strategy and Planning Groupat Japan Oil, Gas and Metals National
Corporation (JOGMEC). To respond to
the diversifying needs of oil-producing
countries, JCCP feels that cooperation
between organizations in the oil
upstream and downstream sectors will
become increasingly important, andhopes this first undertaking will leadto stronger ties between JOGMEC and
JCCP.

< ES> Environmental Pollution
Control; December 2007•

<ST> Maintenance Management;
October to November 2007

After the meeting at the Mesaieed
Refinery, the JCCP team visited the QP
Training Center in Doha, where JCCP’scounterpart department, the Career
Development Department, is located.
The team met with Mr. Abdulla AlSahlawi, Corporate Training Manager,
and first reported the results of the
discussion held at the refinery. They
then exchanged views concerning
JCCP’s renewed policies based on the
Activity Implementation Guidelines andits strategies to place stronger emphasison tailor-made courses, and received
Mr. Al-Sahlawi’s kind understanding.

Meeting at the KNPC Head Office• Topics •JCCP NEWS No. 97 August 2007

<by Koji Hori, Operations Dept.>Topics

International Joint Research Program
Receives Noguchi Memorial Award ofJapan Petroleum Institute (JPI)As part of JCCP’s international
research program, Phase II of the joint
research project on Development ofHigh-Severity Fluid Catalytic Cracking(HSFCC) Technology (demonstration
study) was implemented with Nippon
Oil Corporation (NOC), King Fahd
University of Petroleum and Minerals(KFUPM), and Saudi Arabian Oil
Company (Aramco), from 2000 to
2005. A 30 b/d pilot plant has been
constructed in Saudi Arabia and testoperated, to verify and examine theeffects of the technology.
T he project was successfullycompleted, through the long-term test
operation of the pilot plant. Having
obtained good prospects for basic dataacquisition, the project has provided
huge impetus toward the constructionof a commercial plant.
T he project was awa rded theF Y20 0 6 J PI Nog uch i Memor ia lAward in recognition of its substantial
contribution to promoting cooperationand friendship with oil-producing

JPI general meetingAward recipients and relevant parties

countries through the developmentof oil refining technologies and othertechnical development efforts.
The award ceremony was held on
May 17, following the JPI’s annual
general meeting. The award went to
JCCP, NOC, KFUPM, and Aramco.
Representatives from Saudi Arabia
who attended the ceremony included
Dr. Sulaiman S. Al-Khattaf, Director of
the Research Institute of KFUPM, Mr.

Sami M. Bukhari, Representative for
Far East & Oceania Area of Aramco,and Dr. Stephane Kressman, Director of
Research & Development of Aramco.
Further R&D results are expected,
for practical application to the HSFCC Scale-up Study, a JCCP technicalcooperation project that is being
implemented by Saudi Arabia and Japan
since FY2005.
<by Minoru Horike,Technical Cooperation Dept.>

Recipients of the JPI Noguchi Memorial Award:(from the right) Dr. Sulaiman S. Al-Khattaf, Director of
the Research Institute of KFUPM; Mr. Sami M. Bukhari,Representative for Far East & Oceania Area of Aramco;
Mr. Hiroji Adachi, General Manager of Technical Service
Department of NOC; and Mr. Junichi Hatano,
Managing Director of JCCP

JCCP NEWS No. 97 August 2007

• Topics •Topics

Contract Signing Ceremony with Saudi Aramcoin the Kingdom of Saudi Arabia

Project on Advanced Hydrocracking
Catalyst Technology for Saudi Arabian
Heavy FeedOn March 10, 2007, a ceremony
was held to commemorate the signingof a contract for a project on “Advanced
Hydrocracking Catalyst Technology for
Saudi Arabian Heavy Feed,” which JCCP
will be implementing in Saudi Arabia
with the Research & Development
Center of Saudi Arabian Oil Company(Saudi Aramco) as its counterpart. The
ceremony was held at the Saudi Aramco
Research & Development Center, withthe attendance of representatives from
Saudi Aramco, JCCP, and Nippon Oil
Corporation, the company that will be
implementing the project.
The project is a major milestonemarking the first signing of a contract
for a project between Saudi Aramco and
JCCP, and a harbinger of a new era in
the cooperative and friendly relationshipbetween the two organizations. Dr.
Omar S. Abdul-Hamid, Manager,
Research & Development Center, andMr. Junichi Hatano, Managing Directorof JCCP, agreed to devote their efforts
to further strengthening and sustaining

At the Research & Development Center of Saudi Aramco

their relationship of mutual cooperationand friendship.
In the project, joint studies will bemade with the prospect of ultimately
conducting a demonstration of theadvanced and effective utilization of thehydrocracking unit. The key componentsof the project will include a feasibility
study on the future introduction ofhigh-performance catalysts for heavy
feed, a catalyst performance simulation,

Contract signing ceremony:
Mr. Minoru Horike, General Manager of JCCP’s TechnicalCooperation Dept. (second from left), Dr. Omar S. Abdul-Hamid,
Manager, Research & Development Center (second from right)

10 • Topics •and a pilot evaluation test for optimum
catalyst design.
After the signing ceremony, the
JCCP delegation paid a courtesy callon Mr. Khalid G. Al-Buainain, Vice
President, Engineering Services of
Saudi Aramco, and held a meaningfulexchange of views on the enhancement
and continuation of cooperation between
Saudi Aramco and JCCP.
<by Keikoh Sasaki,
Technical Cooperation Dept.>

Courtesy call on Mr. Khalid G. Al-Buainain, Vice President,
Engineering Services:
Mr. Hatano (left), Mr. Al-Buainain (center),Dr. Abdul-Hamid (right)

JCCP NEWS No. 97 August 2007

Topics

Contract Signing Ceremony with KFUPM
in the Kingdom of Saudi Arabia

Verification Study for Aromatics
Production Process

Mr. Junichi Hatano, Managing Director of JCCP,
signing the contract

On March 12, 2007, a ceremony washeld to commemorate the signing of acontract between King Fahd Universityof Petroleum & Minerals (KFUPM)
and JCCP for “Verification Study for
Aromatics Production Process,” which
JCCP will be implementing in Saudi
Arabia with KFUPM as its counterpart.
Dr. Mohammad Budair, Vice Rector
for Applied Research at KFUPM,
and Mr. Junichi Hatano, Managing
Director of JCCP, signed the contract
at the oil refining and petrochemical

Dr. Mohammad Budair, Vice Rector for Applied Research,signing the contract

institute of KFUPM in the presence ofrepresentatives from KFUPM, JCCP,
and Nippon Oil Research InstituteCo., Ltd., the company that will be
implementing the project.
From April 2003 to March 2007,
KFUPM and JCCP have implemented
a technical cooperation project on
creating a framework for aromatics
production processes, in two phases. As
a result, a suitable research environment
for aromatics has been created throughthe development of necessary facilities

Courtesy call on H.E. Dr. Khaled S. Al-Sultan, Rector of KFUPM:
H.E. Dr. Al-Sultan (left); Mr. Hatano (second from left);
Mr. Michiro Matsubara, Executive Director of Nippon Oil
Research Institute (second from right)

and technical transfers, to facilitate
production increases in response to thegrowing global demand for aromatics.
The new project will work toward thefuture demonstration of the catalyst andprocess that have been developed under
the new research environment for the
production of aromatics.
The project will be implemented
over a period of two years, from April
1, 2007, to March 31, 2009. With theparticipation of Nippon Oil ResearchInstitute Co., Ltd. and Nippon Oil

Mr. Hatano presenting a commemorative gift
to H.E. Dr. Al-Sultan

JCCP NEWS No. 97 August 2007

• Topics • 11

Corporation, a conceptual design
will first be created of a commercialscale plant for C8 aromatic compound
production, based on the C9 aromatictrans-alkylation process, which has
been jointly developed with KFUPM
using Japanese technologies to suitproduction conditions in Saudi Arabia.
The design will then be used to study thecommercial production of C8 aromatics.

The facilities installed at KFUPM will
also be used to examine other processes
in detail, to comparatively evaluate
them with the process developed inthis project.
After the ceremony, the JCCP
delegation visited H.E. Dr. Khaled S. AlSultan, Rector of KFUPM. Mr. Hatano
asked for His Excellency’s understanding
and cooperation in the future course of

the project, as well as in strengthening thefriendly ties between KFUPM and JCCP.
In return, His Excellency acknowledged
KFUPM’s significant relationship with
JCCP, and expressed high hopes forfurther cooperation between the twoorganizations.
<by Keikoh Sasaki,
Technical Cooperation Dept.>

TopicsContract Signing Ceremony with
Bandar Abbas Oil Refining Company in Iran

Improvement of the Wastewater
Treatment System

Signing of the contract:
Mr. Aminollah Eskandari, Managing Director of BORC,
and Mr. Junichi Hatano, Managing Director of JCCPOn April 15, Bandar Abbas Oil
Refining Company (BORC), a company
affiliated with National Iranian Oil
Refining and Distribution Company(NIORDC), and JCCP held a contract
signing ceremony at the refining
company for a project on “Improvementof the Wastewater Treatment Systemat the Bandar Abbas Oil Refining
Company in Iran.”
The ceremony took place amid afriendly and relaxed atmosphere, with theattendance of approximately ten BORC
members, including Mr. Aminollah

12 • Topics •(From front row center to the right)
Mr. Eskandari, Mr. Hatano, and Mr. Hotta

Eskandari, Managing Director, Mr.
Alireza Amin, Refining Director, anda number of other executives, and eight
members from Japan, including Mr.
Junichi Hatano, Managing Director of
JCCP, Mr. Yasushi Hotta, President of
Cosmo Research Institute, the company
that will be participating in the project,and several other members.
At the beginning of the ceremony,
Mr. Eskandari discussed BORC’s active
management policies, in reference to thefollowing matters.
• BORC has one of the most strategic

JCCP NEWS No. 97 August 2007••

supply bases for domestic demand,and is poised to become the largest
exporter in Iran in the near future,
once it completes its plan to increase
production capacity.
BORC has begun to process ultraheavy Iranian crude since lastyear.
In the future, BORC plans to construct
two new refineries (a condensaterefinery and an ultra-heavy cruderefinery) in the vicinity. With a total
capacity of approximately 1,000,000
BPSD, it will become a major oilrefining center for Iran and the
Middle East region.
At the same time, Mr. Eskandari
described BORC’s environment-oriented
policy, as follows.
• BORC is located on the coast of
the Gulf. Therefore, preventing
marine pollution is of primaryconcern, and it considers proper
wastewater treatment system to bea vital component of the refinery.
Mr. Eskandari believes that theexpertise and experience of the JCCP
project team will play a significant

role in dramatically improving thewastewater treatment system at BORC,
and expressed his appreciation andhopes for the JCCP project team’s arrivaland its cooperation in the project.
On the Japan side, Mr. Hatano and
Mr. Hotta promised to support the
project to the greatest extent possible
through JCCP technical cooperation,
so that the project may be completed
successfully. They also expressed theirhopes that the project will bring Iran andJapan closer together in a relationship ofmutual cooperation.

A f t er t he present at ions, M r.
Eskandari and Mr. Hatano signed thecontract and closed the ceremony.
Mr. Eskandari and other members of
BORC warmly received the JCCP teamto the ceremony with gracious words ofappreciation and welcome. The JCCP
team took this as an indication of theirhuge expectation in the project, andrenewed their commitment to providing
their best technical cooperation effort toensure the success of the project.
<by Hitoshi Hirokawa,Technical Cooperation Dept.>

TopicsSigning Ceremony Held in Oman forTechnical Cooperation Project with
Sultan Qaboos University
On June 12, 2007, a ceremony washeld for the signing of an agreement on
a new technical cooperation project on“Treatment and Utilization of Oilfield
Produced Water in Oman,” to be
implemented with Sultan Qaboos
University (SQU) over a period of
three years. The grand ceremony washeld in the conference room of the vicechancellor of SQU, with the attendanceof H.E. Keiji Omori, Ambassador ofJapan in Oman.
It so happened that the ceremony
took place in the wake of Cyclone Gonu,
the strongest cyclone to hit Muscat, thecapital of Oman, in 60 years. Damage
from the disaster was clearly evident
throughout the city, and desperate
efforts were being made to restore
vital lifelines. Despite this situation,
SQU warmly welcomed the Japanesedelegation and successfully carried out
the ceremony, as planned.
At the opening of the ceremony,
Ambassador Omori expressed Japan’s
strong intention to share its extensive
experience in various fields, including
hurricane countermeasures, throughProfessor Amer bin Ali Al-Rawas, Deputy Vice Chancellor, and Mr. Junichi Hatano,
Managing Director of JCCP, signing the MOU:
(Back row) H.E. Dr. Saud Nasser Ali Al-Riyami, Vice Chancellor (second from left);
Dr. Ali Saud Al-Bemani, Deputy Vice Chancellor (third from left); H.E. Keiji Omori,Ambassador of Japan in Oman (third from right); and Dr. Yoshiro Yashiro, Director of
the Institute of Technology of Shimizu Corporation (far right)

technical cooperation. In response,
H.E. Dr. Saud Nasser Ali Al-Riyami,
Vice Chancellor of SQU, expressed his
appreciation of technical cooperation
Oman has received from JCCP andother Japanese sources to date, andresponded to Ambassador Omori’s
JCCP NEWS No. 97 August 2007

message by reaffirming his wish
to continue strengthening SQU’s
cooperative relationship with Japan.
Next, Mr. Junichi Hatano, Managing
Director of JCCP, expressed his heartfelt
gratitude to SQU for holding the signingceremony despite the state of affairs in• Topics • 13

the aftermath of the cyclone disaster.
He then reflected back on the historyof cooperation between SQU and
JCCP, which began back in 1996 when
H.E. Dr. Mohammed bin Hamad AlRumhy, present Minister of Oil & Gas,
first initiated a joint project with JCCP,
and renewed JCCP’s commitment to

Scene of the signing ceremony

further deepening its relationship with
SQU through implementation of the
new project. Following Mr. Hatano’s
speech, Dr. Yoshiro Yashiro, Directorof the Institute of Technology, Shimizu
Corporation, thanked SQU for its
continued cooperation, and made anappeal concerning future cooperation.
After the opening speeches, Professor
Amer bin Ali Al-Rawas, Deputy Vice
Chancellor for Postgraduate Studies& Research of SQU, and Mr. Hatano
signed the agreement.
The project will examine the treatment
and utilization of oilfield-produced
water, which amounts to approximately
three times the volume of crude oil

production in Oman. It aims to address
the groundwater contamination problem
caused by the disposal of water from
oilfields, a problem that is a principal
concern in southern Oman today, and tosecure water resources for irrigation byrecycling oilfield-produced water.
Through the ceremony, SQU and
JCCP reaffirmed the significanceof strengthening ties between Oman
and Japan through JCCP’s technicalcooperation.
News of the signing ceremony wasbroadcast on Oman TV and reported
in newspapers, demonstrating the large
expectations placed on the SQU-JCCP
technical cooperation in Oman.

<by Nobutaka Sumikawa and Wataru Maekawa, Technical Cooperation Dept.>

Topics

FY2006 Survey on Downstream Trendsin Oil-Producing Countries“Social Changes and Future Technical Cooperationin Middle East Oil-Producing Countries”
by Mr. Kyo Kusumoto (ex-Managing Director of Idemitsu Kosan Co., Ltd.), Leader,Study Group for Promotion of Technical Exchange Programs with Oil-Producing Countries
Today, the Middle East oil-producing countries are witnessing a sudden rise in crude oil prices on the one hand, while
confronting population growth and other significant social changes on the other. In the Fiscal 2006 Survey on Downstream
Trends in Oil-Producing Countries, the Study Group for Promotion of Technical Exchange Programs with Oil-Producing Countries
sought to clarify the changes that the oil refining industry is facing in the Middle East oil-producing countries and the future
course of JCCP technical cooperation, in relation to the social changes that are taking place in the region. Here we asked Mr.
Kyo Kusumoto, then Managing Director of Idemitsu Kosan Co., Ltd., who acted as leader of the study group, to summarize theresults of the survey as a wrap-up of the FY2006 technical exchange program.
Please refer to page 29, “Overview of the FY2006 Survey on Downstream Trends in Oil-Producing Countries,” in this edition.

1. Background and Objectivesof the Study GroupThe price of crude oil has beensteadily rising since the beginningof the 21st century, and has finally
exceeded 60 US dollars per barrel. It
will probably continue to rise hereafter,and eventually, management of crude
supply and demand balance may become
even more difficult than it is today.
Given this situation, there is apt to be
14 • Topics •greater demand for JCCP cooperationin strengthening cooperative relations
between producers and consumers
for stability of crude oil supply in the
future.
JCCP has celebrated its 25th
anniversary last year. Since its
establishment, it has received morethan 16,000 people from oil-producing
countries to Japan, and dispatched some
5,000 Japanese experts to oil-producing
countries. JCCP has consistently worked
JCCP NEWS No. 97 August 2007

to enhance technical exchange programswith oil producing countries, and must
continue to fulfill its role as a “window oftechnical exchange” between Japan andoil-producing countries, in the future.
To keep up with the changes that are
occurring in oil-producing countries
and reflect them in technical exchange
programs, JCCP has launched the Study
Group for Promotion of Technical
Exchange Programs with Oil-Producing
Countries in 2000 to conduct annualsurveys of technical needs in oilproducing countries. By way of closing
the fiscal 2006 survey, I would like topresent an overview of our findings.

300

million people

Middle East Oil-Producing Countries
200

2. Approach to the Survey

Japan
100

The fiscal 2006 survey focused onunderstanding changes in refineries
in relation to social changes in sevencountries in the Middle East region(Saudi Arabia, Kuwait, Qatar, UAE,
Oman, Iran, and Iraq). Although thesurvey specifically targeted the abovementioned seven countries, our findingscommonly apply to all oil-producing
countries in the region.
Because refineries are a country’s
most important source of energy supply,
the role of refineries necessarily reflectssocial changes in the country. By studying
refinery changes in conjunction withsocial changes, we believe we can better
understand a country’s technical needs.
At the same time, it would also allow
JCCP to upgrade its technical exchange
program to better meet those needs.

0

1950

1960

1970

1980

1990

2000

2010

2020

2030

2040

2050

Fig. 1 Population in the Middle East Oil-Producing Countries and Japan(Source: Sekai Kokusei Zue, 2002/03)

8

million B/D

7

China

6

Japan

5
4

Middle East Oil-Producing Countries

3
2
1
0

1965

1970

1975

1980

1985

1990

1995

2000

2005

Fig. 2 Oil Consumption Trends in the Middle East Oil-Producing Countries and China(Source: BP Statistical Review of World Energy, 2006)

3. Survey Findings
1) Social Changes in the Middle
East Oil-Producing Countries
In the Middle East oil-producing
countries, the population is growing at
an extremely rapid pace. This population
growth is the single most salient socialchange in those countries. The region
is home to 130 million people today,
but this figure is expected to grow to
250 million or more by 2050 (Fig. 1).
The nationalization of oil resources
following the first and second oil crisishas dramatically improved the living

environment of residents and triggered
a rapid increase in population. Today,
people under the age of 25 make up
half the population, and are expectedto account for a larger percentage inthe future. Refineries in the Middle
East region therefore bear an important
responsibility to provide continuous
supplies of energy to support thegrowing population.
2) Changes in Refineries
Refineries in the Middle East oilproducing countries are expected tomake the following changes, in responseto the above-mentioned social changes.

Members of the Study Group for Promotion of Technical Exchange Programs with
Oil-Producing Countries (Mr. Kyo Kusumoto, study group leader, third from the left in
the front row)

(1) Measures to respond to growing
demand for oil products
The Middle East oil-producing
countries are generally regarded as oil
exporting countries, but due to theirincreasing population, they are gradually
becoming major oil-consuming countries,

JCCP NEWS No. 97 August 2007

• Topics • 15

comparable to China. Moreover, demandfor oil products is expected to continue
growing (Fig. 2).
Given this situation, refineries arerushing to install new crude oil distillation
units and secondary refining facilities.
For example, as Dr. Ibrahim Mishari,Vice President for Marketing & Supply
Planning, Saudi Aramco, discussed at
the JCCP International Symposium held
last December, there are plans to create
1.6 million barrels per day of additional
refining capacity in Saudi Arabia alone,which corresponds to roughly a quarterof all announced plans for worldwide
refinery capacity increases.
In terms of oil product, the increase indemand for gasoline is most prominent,
and can be expected to increase evenmore, as the younger generation bornafter the oil crisis reaches their 20s
and 30s and begins to drive their own
automobiles. To increase gasoline
production, such processes as bottom
oil cracking processes, reformers, andhydrodesulfurization processes, arebeing built in rapid succession. As
these processes incorporate advanced
technologies, refineries will be expected
to enhance their technical capabilities inregard to processes, catalysts, operations,as well as maintenance.
(2) Initiatives for Financial
Independence
Refineries in the Middle East oilproducing countries employ a system,
in which they buy crude oil from theirparent company at international prices,then sell products again at international
prices to the parent company. As the oil
industry is the most important industry inthese countries, the refineries must work
to create strong companies with global
competitive strength, to support thegrowing younger population. In the effort
to strengthen their companies, refineries
take their profit structure to one that iscompatible with global standards.
As refineries in the Middle Eastand in Japan operate based on the sameprofit structure, the refineries are also

16 • Topics •Fig. 3 Sohar Refinery in Oman, home of one of the world’s largest heavy oil cracking
unit (completed in April 2007) (Photo courtesy of Sohar Refinery Company)

striving toward a similar goal. Just as
Japan is aiming to develop refineries
with high added-value, such as heavy
oil cracking capability and integrationof oil and petrochemical operations, inconjunction with energy conservationand cost-reduction activities, it is
becoming increasingly important for
Middle East oil-producing countries toalso implement similar efforts.
(3) Creation of Job Opportunities
The people in the Middle East
countries face a major social challenge
in initiating the above-mentioned
changes themselves. As the oil industry
is the priority industry in these countries,
it is expected to provide employment
opportunities to youths who will soon
be entering the workforce, and toprovide opportunities to enhance theirindustrial technology through actual
work experience to as many people
as possible. Various measures need tobe taken, such as to allow nationals totake on jobs that had previously been
undertaken by foreign engineers or
outsourced to foreign countries, andto start up new businesses that would
provide employment to the younger
generation.

4. Expectations of JCCP
Through our visits to several

JCCP NEWS No. 97 August 2007

countries in the Middle East andinterviews with a number of refinery
management personnel, we have learned
that refineries in the region are primarily
concerned about developing “people”
who are capable of transforming the oil
industry. It is natural for a country towant to entrust the challenge to citizensof the country, from project managers tooperators working in the field, and thisis where JCCP can help.
As mentioned at the beginning, forthe past 25 years JCCP has worked toenhance technical exchange programswith the Middle East oil-producing
countries, and must continue to upgrade
its efforts as a “window of technicalexchange” between Japan and thosecountries. The refineries of the Middle
East have acquired the highest level oftechnical skills by global standards, so
their expectations of Japan are closely
related to expectations for advanced
technologies from JCCP.
The future course of JCCP’s technicalexchange program will continue to be
examined in fiscal 2007, based on the
results of this survey. Meanwhile, JCCP
will make every effort to respond to the
expectations of oil-producing countries
as a “window of technical exchange,”
and would like to ask all member
companies, as well as oil-producing
countries, for their continued support
and cooperation.

Personnel
Exchange

Implementation Report on theOnline Analyzer Course (TR-1-07)
1. Course Establishment
Policies

conventional analyzers, the course also
covered the basics of soft sensors, which
provide one of the functions of model
predictive control, and practical training
on dead time compensation (DTC)
control of advanced process controls(APC). Specifically, the main themesof the course were:(1) Case studies of online
analyzers(2) Maintenance of online
analyzers

Online analyzer systems have been
gaining attention in recent years asa tool for quality management andenvironmental issues. The Online
Analyzer course therefore focused onan overview of online analyzer systems,
control technologies used in conjunction
with analyzers, and maintenanceof online analyzers. In addition to
Overview of participants
Country

Organization

No. of participants Age

Indonesia

LEMIGAS

1

42

Libya

NOC

1

43

Myanmar

MOE

1

41

Nigeria

NNPC

1

50

Pakistan

NRL

1

52

Vietnam

PETROVIETNAM

1

28

Saudi Arabia

ARAMCO2

42, 32

Yemen

MOMR

1

39

Oman

ORC

1

37

10 participants

Average age: 40.6

Total: 9 countries

At the DKK-Toa Tokyo Engineering Center(3) Soft sensors(4) DTC control training

2. Participants
Twenty-three applicants from 12
countries applied for the 12-member
course, plus several more applicants
who inquired about the course after
the closing date of applications. Twelve
members were selected according
to the selection criteria, but due to acouple of last-minute cancellations, 10participants from 9 countries attended
the course.
The majority of the participants
were in their 30s or 40s, as shown in thetable. The group was highly focused,
and offered much input to the course.

3. Program Structure
The course was roughly divided
into three programs, based on the
aforementioned course themes: (1)lectures at JCCP, (2) visits to refineries
and manufacturers of analyzers (on-sitetraining), and (3) hands-on software
training.

Training in control theories and DTC control

JCCP NEWS No. 97 August 2007

• Personnel Exchange Programs • 17

At the Idemitsu Kosan Chiba Refinery(1) Lectures at JCCP (lectures by
JCCP lecturers)
1) Overview of online analyzers
This lecture provided an overview of
online analyzers, the main subject of thecourse. It also discussed the objectiveof the subsequent practical training
session and other basic componentsof the course. Topics covered in thislecture included introductions to various
types of analyzers, typical analyzers,
analyzers commonly used in refineries,
near-infrared analyzers and otherrelatively new types of analyzers, and astudy of soft sensors, which are quality
estimators that use model predictive
control software to predict analyticalvalues.
2) Control theories
As part of the study of control
theories, this lecture discussed PID
control, which forms the basis ofprocess controls, and reviewed control
technologies that are required of all

At the Cosmo Oil Chiba Refinery

instrumentation engineers. Participantsstudied various features of PID control
using PC software.
3) Dead time compensation (DTC)
control using analyzers
In process controls using an analyzer,
time lags are inevitable, because “thesampling line is long,” or “analysis
takes time.” This lecture session offered
training in DTC control, as a method of
reducing the time lag.
(2) On-site training
1) On-site training at refineries
In this course, two sites provided
on-site training: the Chiba Refinery ofIdemitsu Kosan Co., Ltd. and the Chiba
Refinery of Cosmo Oil Co., Ltd.
•

Idemitsu Kosan Chiba Refinery
Participants were introduced toonline analyzers and soft sensors usedat the refinery. In an off-site area of therefinery, they observed an old analyzer

On-site training at DKK-Toa

18 • Personnel Exchange Programs •that is still in operation, and were
impressed with the well-maintained
state of all equipment at the refinery.
In the introduction to the refinery’s soft
sensors, the participants took notice inthe fact that the convenience of soft
sensors is predicated on large volumesof data.
•

Cosmo Oil Chiba Refinery
Cosmo Oil’s Chiba Refinery alsouses a number of online analyzers,
mainly for process controls. Seeing
how even old analyzers are still in use
at the refinery, the participants wereonce again impressed with the careful
maintenance and advanced managementof equipment there, as they were at
Idemitsu Kosan’s Chiba Refinery.
2) Practical training at manufacturersof analyzers
In this course, the participantsreceived on-site training at threecompanies that manufacture analyzers,n a m ely DK K-To a C o r p o r a t io n ,At Yokogawa Electric

JCCP NEWS No. 97 August 2007

At Horiba

Yokogawa Electric Corporation, andHoriba, Ltd.
•DKK-Toa Corporation,
Tokyo Engineering Center
DKK-Toa has a long history inthe manufacture of online analyticalinst r uments, a nd suppl ies ma ny
products to refineries in Japan. It alsodelivers products to Idemitsu Kosan
and Cosmo Oil, two oil companies theparticipants visited during this course.
The participants were introduced
to explosion-proof online analyzers
and various other types of analytical
instruments. They were also taken
through a step-by-step descriptionof the production process while theyobserved actual operations at theplant, and appeared to appreciate thefirst-hand experience in the productionof a na lyzers. Some pa r ticipa nts
raised questions concerning details ofmaintenance techniques, and obtained
precious information and knowledge
from plant members.
•

Yokogawa Electric Corporation
Headquarters and Mitaka Plant
As a comprehensive instrumentation
manufacturer, Yokogawa Electric has
been manufacturing analyzers formany years. Therefore, lectures focused
mainly on near-infrared analyzers,
and intrigued the participants withmeticulous details. An introduction to asoftware program for soft sensors, which

Presentation of the results of a review exercise on soft sensors

the company is currently developing,and of the latest distributed control
system (DCS) that has been developedby the company from the perspectiveof a comprehensive instrumentation
manufacturer, also captured the interestof the participants.

practical training on the second day,all participants presented outstanding
results to the review exercises they
were given, and engaged in active
discussions.

•

Perhaps owing to the fact that thecourse content was strongly relevant totheir duties, the participants rated thecourse very highly, and seemed to havelearned much from it. As a lecturer ofregular courses, I always hope that at
the end of each course, all participants
take back with them at least one thing
special. I believe the participants of thiscourse, like all courses, have done so.
It is often the case with online
analyzers that they are only perfunctorily
inspected for maintenance, despite theimportance of meticulous maintenance.
Or, so much thought is given to details of
their maintenance that the details obscure
the actual meaning of maintaining
analyzers in good condition. However,as the participants have comprehended
the necessity of maintenance, I am
certain they will hereafter utilize online
analyzers to the fullest.
Lastly, I would like to thank all
external lecturers and relevant personnelof facilities we visited, for their kind
contribution to the successful completionof this course. On behalf of JCCP, I would
like to extend my deepest appreciation,
and ask for your continued support.

Horiba Ltd.
Horiba is a manufacturer of analyticaland measurement instruments for use
in various fields. Among the many
types of instruments it manufacturers,
it mainly introduced environmental
analyzers and industrial gas analyzers
to the participants. During the tour of
the Horiba plant, participants appeared
impressed with the wide variety ofanalytical and measurement instruments
being manufactured, from portabletypes to types having a large housing.
(3) Software training (lectures byexternal lecturers)A l e c t u r e r f r o m Ya m a t a k e
Corporation gave a two-day lecture
on another type of analyzer called soft
sensors. The first day of the lecture
covered soft sensor theories, and thesecond day was spent on practicaltraining. Soft sensors are a type ofmodel predictive control that is generally
difficult to understand at first, but theparticipants appeared to gain a good
grasp of the concept. In fact, in thepresentation session held after the

4. Impressions<by Yoshiaki Tozawa, Training Dept.>

JCCP NEWS No. 97 August 2007

• Personnel Exchange Programs • 19

Personnel
Exchange

Report on the Cooperation with
Training Centers Program— Iran, Oman, and UAE—
Following a visit to Kuwait and
Qatar by a JCCP ES/ST Promotion
Team in April, a four-member JCCP
mission visited Iran, Oman, and UAE,
under the Cooperation for Training
Centers program (TC-21-07), fromMay 24 to June 4, 2007. The mission,consisting of Mr. K. Yokosuka, General
Manager, Operations Department,
Mr. T. Esumi, Lecturer, Training
Department, Mr. K. Hirano, General
Manager, JCCP Middle East Office, and
Ms. M. Kitahara, Assistant Manager,
Operations Department, paid visits to
the National Iranian Oil Refining &Distribution Co. (NIORDC), Shiraz
Oil Refining Co. (NIORDC SORC),
National Iranian Oil Co. (NIOC), Oman
Refinery Co. (ORC), and Abu Dhabi Oil
Refining Co. Takreer (Takreer).
Prior to visiting the three countries,
the members attended a ceremonythat was being held in Kuwait tocommemorate the “Collaboration
between Kuwait and Japan in Celebrationof KISR/KNPC/JCCP Joint Projects
and Other Activities Related to the Oil
Sector.” They met with JCCP graduates
who had also attended the ceremony,and took the opportunity to learn
about their subsequent activities andachievements.
Taking a slightly different approachfrom past TC programs, the membersof this particular program exchanged
views with relevant organizations,focusing on specific needs and issues
in each country. From this perspective,
they promoted Expert Service (ES) andStudy Tour (ST) programs, explained
and clarified questions in relation toregular courses, resolved problems
brought to their attention, mutuallyreaffirmed the significance of building
a close relationship between JCCP
20 • Personnel Exchange Programs •With JCCP graduates at the Shiraz Refinery in Irantraining program coordinators and theircounterparts in oil-producing countries,
and held follow-up meetings with JCCP
graduates.

1. Iran(1) Visit to the NIORDCHead Office
On May 28, the JCCP mission visited
NIORDC and met with Mr. H. Ghorbani,
Director of Training & Admin. Affairs,
Mr. Hassibi, Foreign Assignments
Representative and counterpart for
JCCP activities in Iran, and five otherofficers in charge of training.
At the outset of the meeting, Mr.
Yokosuka gave a detailed overview of ES
and ST programs, which were the main
subjects of the mission. In response, the
NIORDC side expressed strong interestin receiving a training program forhuman resources management (HRM),
in particular, because NIORDC isaiming to privatize its organization
within the next five years. As a resultof discussions, NIORDC and JCCP
agreed to implement an ST program on
HRM in February 2008. As productivity
JCCP NEWS No. 97 August 2007

improvement and human resources
development are pressing issues forprivatization, JCCP intends to support
NIORDC, with a focus on those areas.
On May 29, the mission paid acourtesy call on Mr. Mohammad Zali,
Director of Refining Affairs, but Mr.
Zali was away on urgent businessthat required his immediate attention.
Instead, the members met with Mr. A.
Jowshan, Deputy Director of Refining
Affairs, who had participated in a JCCP
International Symposium 16 years ago
and expressed his gracious appreciationof JCCP activities.
(2) Visit to NIOC
On May 28, the JCCP mission visited
the NIOC head office and held a meetingwith Mr. S. M. A. Khatibi Tabatabai,Vice Executive Director, and three other
NIOC officers. Up to now, NIOC has
been applying to JCCP regular courses
via JCCP’s counterpart at NIORDC, but
the organization has also been seeking a
direct channel to JCCP. Therefore, withthe approval of NIORDC, the mission
members visited NIOC to explain therequirements, method of application,and other guidelines for participating in
JCCP-initiative courses, as well as therole expected of a JCCP counterpart.
When the members suggested its
participation in a future marketingcourse, the NIOC side respondedwith great interest in applying for thecourse, which is scheduled to be held
this autumn.
(3) Visit to the Embassy of Japan in
Iran
On May 27, the mission paid acourtesy call on Mr. Hidetoshi Ishizawa,
Second Secretary at the Embassy ofJapan, located in Tehran. Mr. Ishizawa
was still new to his post in Iran, but was
fully acquainted with JCCP activities.
Nevertheless, the JCCP members
elaborated on JCCP’s relationship with
Iran based on training programs, andobtained Mr. Ishizawa’s further approval.
Mr. Ishizawa, on the other hand, provided
valuable insight into the political,
economic, and social situations in Irantoday, and gave an updated overview ofcircumstances surrounding Iran.
(4) Follow-up Meeting at NIORDCSORC (Shiraz Refinery)
On May 30, the JCCP mission
visited the Shiraz Refinery to hold afollow-up meeting with JCCP graduates.
A large number of JCCP graduates
assembled in an impressive conference
room, equipped with state-of-the-art
facilities, to welcome the JCCP mission.
The members were proud to learn thatAt the NIORDC Head Office

Mr. Shahrokh Khosravani, Managing
Director, and many of the executives
were JCCP graduates themselves,
and that other JCCP graduates haveapplied their JCCP experience totheir work and risen to important
positions in the organization. Their
underlying understanding and respect of
JCCP activities contributed to making
the follow-up meeting especiallyconstructive and meaningful.
In his speech, Mr. Khosravani
gave high praise to JCCP operations,and expressed his appreciation, as
well as his expectations, of JCCP’scontinuous relationship with SORC.
He also indicated that the refinery
has introduced the 5S system andhas developed a greenbelt around therefinery. Other executives gave theirviews on environmental management,
quality management, and HSE (health,safety and environment), as issues ofimmediate concern in the refinery.

With Mr. Hidetoshi Ishizawa, Second Secretary (left end),
at the Embassy of Japan in Iran

Other JCCP graduates, after uniformly
thanking JCCP and sharing memoriesof their experience in Japan, voiced their
future expectations of JCCP, such as forthe establishment of a course on electric
power and the need for improved
English proficiency.
After the meeting, the mission
members toured the refinery. The refinery
had suffered tremendous damage and lostnearly 20 employees during the Iran-Iraq
War that occurred in 1980. However,it has admirably recovered from thedevastation, and the sight of the wellmaintained refinery today, surroundedby abundant greenery that belies its
location in the midst of a desert, duly
impressed the JCCP members.
In regard to ES/ST programs, SORC
agreed to the JCCP mission’s proposal to
implement a program during the first halfof fiscal 2008. The two organizations
will discuss and finalize details of the
program by this coming November.

Exchange of views at the Shiraz Refinery;
Mr. Shahrokh Khosravani, Managing Director (center)

JCCP NEWS No. 97 August 2007

• Personnel Exchange Programs • 21

Courtesy visit to the ORC Head Office

2. Oman: Overview of
Meetings at ORC
On June 2, the JCCP mission
visited the ORC head office, locatedin Muscat on the same grounds as
its refinery, and met with Mr. Salim
A. N. Al-Barwani, Manager, HRD& Training, and officers in charge oftraining and human resources. The
ORC executives explained that humanresource development is a priority issue
for ORC today, because the company isplanning a merger with Sohar Refinery
Co. (SRC) in the near future, as a means
to improve operating efficiency. About
two years ago, as many as 94 operatorsfrom ORC participated in JCCP training
programs in Japan (member company
courses), and these operators are now
playing central roles in operations
at ORC’s new refinery, which wascompleted last September.
Mr. Barwani, having served many
years as a counterpart for JCCP training
activities in Oman, as well as participatedin a JCCP International Symposium inthe past, is an understanding supporterof JCCP activities. Therefore, he
immediately expressed strong interest
in ES and ST programs, after listening
to the JCCP mission’s presentation.
The mission also paid a courtesy callon Mr. Masoud S. Al-Msalmy, General
Manager, HR/Admin. & PR, to thankhim for ORC’s regular participation inthis fiscal year’s training courses, in
response to a suggestion made by Mr.

22 • Personnel Exchange Programs •With officers of the HR & Admin. Div. at the Takreer Head Office

Mikio Kojima, Executive Director of
JCCP, when he visited ORC this pastFebruary. As ORC is also planning toparticipate in a JCCP Program Seminar(TCJ) this year, JCCP is hopeful thatits increasing participation will lead toan even deeper understanding of JCCP
activities.
In Muscat, the mission members
found the striking contrast between
the beautiful white buildings andthe imposing presence of the classic
fortresses especially impressive, against
the backdrop of the deep blue sea andsky. Soon after returning to Japan,
however, the members learned of thecyclone that brought disaster to Oman.
JCCP prays for the safety of the peopleof Oman and the quick restoration of
the country.

3. UAE: Overview of the
Meeting at Takreer
On June 3, the JCCP mission visited
Takreer. They met with Mr. Ahmed
Mohamed Al Gattan, Manager, Training& Career Development Dept., andofficers in charge of human resources
and training, to discuss ES and ST
programs. The Takreer side expressed
its wish for a five-day ES program on
the kaizen system developed by Toyota
Motor Corporation, but in regard to ST
programs, some members indicatedthat Takreer cannot afford to send
many employees to Japan all at once,
and would therefore like to focus

JCCP NEWS No. 97 August 2007

on participating in regular courses
instead. They appeared to have a goodunderstanding of JCCP regular courses,
and were of the opinion that regularcourses are extremely beneficial, in thatthey allow participants from different
countries to interact with each other,and provide an ideal opportunity forparticipants to become familiar withJapanese history and culture.
In regard to the JCCP International
Symposium, the Takreer side wasin favor of JCCP’s holding of thenext symposium in February, because
October marks the beginning of the new
fiscal year in UAE, and the couple ofmonths before and after October are thebusiest time of the year for Takreer.
One of the members of the meeting,
Mr. Anwar A. Mutawa, Senior Training
Officer, had participated in a training
management course in the past, and is
now in charge of handling applications
to JCCP courses. He has deep ties to
JCCP, and plans to participate in the
JCCP Program Seminar in July.
As already mentioned, this TC
program adopted a different approachfrom that of previous TC programs,
and focused on holding meetings on
issues specific to each country. This
shift in policy proved to be highly
significant, as it allowed the JCCP
mission to hold effective meetings with
relevant organizations, and concentrateon addressing their immediate concerns
and needs. Moreover, JCCP was ableto obtain opinions and views directlyfrom the organizations through faceto-face discussions, and JCCP training
program coordinators were able to get
to know their counterparts in thoseorganizations in person, to strengthen
their relationships of mutual trust. We
believe these achievements will facilitate
future cooperation activities between
JCCP and the organizations visited.

Lastly, the mission members would
like to thank everyone who warmly
welcomed them and contributed theirtime and effort to making the mission
possible.
<by Masumi Kitahara, Operations Dept.>

Participant’s Voice
Human Resource Management(TR-5-07: May 15 – June 1, 2007)
Mr. Ghassan A. Al-Khunaizi (Saudi Aramco / Saudi Arabia)

On behalf of the participants of the Human Resource

be compatible with performance-oriented employment,

Management course (TR-5-07) representing 12 oil-which is a socially defined value in many countries. Yet,

producing countries, I would like to express our deepest

the knowledge we have gained of the Japanese HRM

thanks and appreciation to the JCCP Executive Director

system has no doubt broadened our perspectives inand all staff members for the opportunity to gain aaddressing future issues in capacity development andcomprehensive and concrete perspective of Japan’s

maintenance, and in redefining the long-standing

people, its history and traditions, as well as the country’s

issue of the relationship between employees and thelively business environment and its unique human

workplace.

resource management (HRM) culture.

We have also learned that tacit knowledge drives

Thanks to JCCP, we have been fortunate to experience

Japanese businesses to a large degree, as opposed

the generosity and hospitality of the Japanese people.

to explicit knowledge, which is the principal concept

We are especially grateful to our course coordinators,

governing more globalized businesses today. While it is a

Messrs. Akio Hoshino, Haruhide Hayabe, and Yasuo Tabei,

traditional concept, tacit understanding is found in many

who have devoted much care and attention to us. We

other aspects of modern Japanese society, sometimes

have also received warm and friendly welcome from thein amazingly subtle ways. This realization has helped uscompanies that we have visited during the course, namely

reaffirm our values of tacit knowledge in our respective

JGC Corporation, Nippon Oil Corporation, Catalysts

countries, as well as its possible application to the HR& Chemicals Ind. Co., Ltd., Nippon Oil Corporation’s

field.

Mizushima Refinery, Cosmo Oil Co., Ltd.’s Sakaide
Refinery, and the Ueno Kosan Group.

In addition to the practical benefits, another major
benefit of the course was the opportunity to get to

The three-week course was well-organized, andknow, and share experiences with, participants from 12

offered a good balance of lectures on HRM, groupoil-producing countries, over an ample period of three

activities, technical field trips, and cultural outings.
Through the activities, we have gained valuable insight
into the Japanese HRM system, which has strongly
supported Japan’s economic development through theyears. We have learned that the system today uniquely
supports not only conventional work values as represented
by the lifetime employment system, but also the more
modern entrepreneurial approaches to business, and thatit has always maintained high standards in taking careof individual employees, who are any company’s mostimportant asset. As HR professionals in our respective
companies, we realize that the concept of lifetime
employment is unique to Japan and may not necessarily

At the Cosmo Sekiyu Sakaide Refinery

JCCP NEWS No. 97 August 2007

• Personnel Exchange Programs • 23

Participant’s Voice
weeks. The scope, depth, and duration of the course

faced by mankind, through their unrelenting efforts andallowed us to hold insightful and meaningful exchanges

strong commitment to restoring their community, thewith each other, which would not have been possible in aenvironment, and world peace. Today, the Hiroshima

fast-paced conference or technical seminar. Consequently,

atomic bomb dome stands as a proud symbol of the

we learned not only about the Japanese HRM system andJapanese people’s unparalleled discipline and love of

its issues and trends, but also about the HR practices andlife.

attitudes in the oil-producing countries represented by

We are proud to say that this course has opened ourthe course participants, and have acquired numerous

eyes to the world, and has marked the beginning of aideas to address HR challenges that we continue to face

new stage in the development of our HR practices. We areon a day-to-day basis.

deeply grateful for this precious experience, and would

In Hiroshima, we learned first-hand, how the Japanesepeople have overcome one of the most tragic experiences

like to say Domo Arigato Gozaimashita to everyone at
JCCP.

Diagnostic Techniques and Maintenancefor Rotary Machinery(TR-8-07: June 5 – 22, 2007)
Mr. Bader Al-Jazzaf (KNPC / Kuwait)

I am honored to have this opportunity to represent

Sekiyu Co., Ltd., and NTN Corporation. We also deepened

the participants of TR-8-07 “Diagnostic Techniques andour understanding of Japan and its history by visiting theMaintenance for Rotating Machinery,” in expressing

traditional cities of Hiroshima and Kyoto.

our gratitude to all the staff of JCCP for their excellent

Once again, on behalf of all the participants of thisorganization of the course and kind cooperation during

course, I would like to extend my appreciation to all

our three-week stay in Japan.

JCCP staff for their time and effort in organizing such

Since our arrival in Japan, we have received onlya meaningful and successful course. I would also like tokindness and friendliness from the Japanese people

give special thanks to our coordinators, Miyawaki-san

wherever we went. The JCCP staff members, in particular,and Higashi-san, for attending to us during the entire

were extremely considerate and caring, and at the same

three weeks. Please keep up the good work. We wish

time, meticulous about being organized and punctual.

good luck to you all.

At the beginning of the course, we received an

In closing, please allow me to express our appreciation

introductory lecture on Japanese culture and language.

in our native language s . Shukran, Terimakasih,

This knowledge served us well throughout the course.

Moteshakeram, E Se Pupo, Imena, Shukriya, Muchas

Despite some communication obstacles and cultural

Gracias, and finally, Arigato Gozai-mashita.

differences between the Japanese people and most of theparticipants, we managed to overcome them and enjoy
the wonderful experience that the course offered.
The presentation and discussion of case studies byparticipants was an outstanding feature of the course. It
gave us an opportunity to share our experiences, as wellas learn about maintenance techniques from different
perspectives.
We have gained a tremendous amount of valuable
information and knowledge, not only from thepresentations given by JCCP and external lecturers, butalso at all of the places we visited, which included Kashima
Oil Co., Ltd., Mitsubishi Heavy Industries, Kobe SteelLtd., Shinkawa Sensor Technology, Inc., Showa Yokkaichi

24 • Personnel Exchange Programs •At the Hiroshima Peace Memorial Park

JCCP NEWS No. 97 August 2007

JCCP Regular Courses Completed in April – June 2007

TR-1-07

Online Analyzer

Period:April 3 – April 18, 2007

No. of participants:

10

Country of participants: Indonesia, Libya, Myanmar, Nigeria, Oman,
Pakistan, Saudi Arabia, Vietnam, Yemen

TR-2-07

Upgrading Processes of Heavy Oil

Period:April 3 – April 20, 2007

No. of participants:

11

Country of participants: Bahrain, Indonesia, Libya, Mexico, Myanmar,
Nigeria, Pakistan, Vietnam, Yemen

TR-3-07

Maintenance Management

Period:April 3 – April 18, 2007

No. of participants:

12

Country of participants: Indonesia, Libya, Mexico, Myanmar, Oman,
Pakistan, Saudi Arabia, Thailand, Yemen

TR-4-07

Essential Petroleum Refining for Process Engineers

Period:May 8 – May 25, 2007

No. of participants:

12

Country of participants: Bahrain, Colombia, Indonesia, Libya, Mexico,
Myanmar, Nigeria, Pakistan, Papua New Guinea,
Yemen

TR-5-07

Human Resource Management

Period:May 15 – June 1, 2007

No. of participants:

17

Country of participants: Indonesia, Iran, Kuwait, Libya, Malaysia, Mexico,
Nigeria, Pakistan, Qatar, Russia, Saudi Arabia,
Thailand

JCCP NEWS No. 97 August 2007

• Personnel Exchange Programs • 25

TR-6-07

DCS Fundamentals and Applications

Period:May 15 – June 1, 2007

No. of participants:

13

Country of participants: Bahrain, Indonesia, Iran, Malaysia, Mexico,
Qatar, Russia, UAE, Yemen

TR-7-07

Refinery Management

Period:June 5 – June 19, 2007

No. of participants:

15

Country of participants: Colombia, Indonesia, Iran, Kuwait, Nigeria,
Qatar, Saudi Arabia, UAE

TR-8-07

Diagnostic Techniques and Maintenance for Rotary
Machinery

Period:June 5 – June 22, 2007

No. of participants:

17

Country of participants: Indonesia, Iran, Kuwait, Mexico, Nigeria,
Oman, Pakistan, Qatar, Saudi Arabia, UAE,
Yemen

Total: 107 participants

26 • Personnel Exchange Programs •JCCP NEWS No. 97 August 2007

TechnicalCooperation

Exchange of an MOA for the Project on“Environmental Survey at the Esfahan Refineryand Its Surroundings in Iran”
On April 18, 2007, Esfahan Oil
Refining Company (EORC) in Iranand JCCP exchanged a Memorandumo f A g r e e m e n t ( M OA) o n t h e“Environmental Survey at the Esfahan
Refinery and Its Surroundings in Iran,”a study that JCCP will be implementing
in Iran, with EORC as its counterpart.
The signing and exchanging of the MOA
took place at the Esfahan Refinery, withthe participation of representatives from
Goodwill Engineering, Inc. (GWE),
the company that will be conducting
the project.
M r. M a n u c h e h r A g h a n e j a d ,Managing Director of EORC, warmly
welcomed the JCCP team, saying he isvery familiar with JCCP, and expressed
his honor of receiving JCCP cooperation
for the project. He also expressed his
appreciation for JCCP’s regular training
courses and technical cooperation
activities. In regard to GWE, Mr.
Aghanejad indicated that has reviewed
GWE’s achievements in environmental
surveys, and requested quick survey
results at the Esfahan Refinery.
T he Esfa ha n Ref i ner y bega noperations in 1980 as one of the oil
refineries of the National Iranian Oil
Refining and Distribution Company(NIORDC). Today, it operates at its

full production capacity of 370,000
b/d, in response to robust demand foroil products in Iran. However, as close
to 30 years have passed since it has
begun refining operations, there had
been increasing environmental concern
about its operations. This concern
has triggered the development of thisproject.
This fiscal year, JCCP will conduct

a preliminary survey to assess thegeneral state of environmental concern
around the refinery, and will examine
appropriate countermeasures as the firststep toward formulating environmental
measures that would enhance theharmonious coexistence of the refinerywith its surrounding community.
<by Toru Moriyama,
Technical Cooperation Dept.>

Exchanging the MOA with Mr. Manuchehr Aghanejad,
Managing Director of EORC

Technical
Cooperation

Fifth Scientific Council Meeting with UAE University
Held in JapanOn May 14, 2007, JCCP and UAE
University (located in Al Ain, UAE)
co-sponsored the Fifth ScientificCouncil Meeting in Japan, at JCCP
Headquarters.
JCCP has been implementing

technical cooperation programs in UAE
since FY2001, with UAE University as
its counterpart. Two research programs
have been carried out between FY2001
and FY2004, and two new programs
have been launched in FY2005. The two

JCCP NEWS No. 97 August 2007

current programs aim to apply Japan’s
advanced industrial technologies to thetreatment of wastewater and acid gas in
UAE’s oil and gas industries.
Abu Dhabi Oil Refining Company(Takreer) is engaging in the wastewater• Technical Cooperation • 27

treatment program, and Abu Dhabi Gas
Liquefaction Limited (ADGAS) in theacid gas treatment program, as partners
from UAE’s industrial sector. With theircooperation, JCCP and UAE University
are striving to implement practicalresearch activities.
From Japan, Nippon Oil Research
I n st it ut e i s t a k i ng p a r t i n t h eimplementation stage of both programs,
and in the acid gas treatment program, Dr.
Masaaki Teramoto of Kobe University
is providing research guidance andassistance, at the request of JCCP.
The Scientific Council Meeting isheld biannually, alternating the venue
between Japan and UAE, and provides
a forum where all principal members
from both countries gather to discuss

the progress of ongoing technicalcooperation programs. As the fourthsuch meeting was held last November
in Al Ain, UAE, this fifth meeting
was therefore held in Japan, with theattendance of eight researchers fromUAE.
The members reported on the
progress of the programs that havebeen made during FY2006, discussed
implementation plans for FY2007, andverified that the programs are making
steady progress.
In the wastewater treatment program,a process simulation will be conducted
on all wastewater treatment facilities,
including a bioreactor, which was taken
up for consideration last fiscal year.
Based on the results of the simulation,

an optimal configuration of treatment
equipment will be proposed sometimein the future.
In the acid gas treatment program,a treatment method using a membrane
contactor is being considered. A
mathematical model that has beendeveloped for the removal of carbon
dioxide from a methane and carbon
dioxide bina r y system, is being
examined in reference to the results ofa laboratory removal experiment. This
will be the final year for conducting
basic research on acid gas treatment,
and a final meeting is scheduled to beheld next March, in Al Ain.
<by Nobutaka Sumikawa,Technical Cooperation Dept.>

Discussion session

Presentation of FY2006 results

28 • Technical Cooperation •JCCP NEWS No. 97 August 2007

Reference  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >Overview of the FY2006 Survey on Downstream
Trends in Oil-Producing Countries
1. Significance of the Survey andCharacteristics of the FY2006 Survey
JCCP has been conducting the “Survey on Downstream
Trends in Oil-Producing Countries” (DS survey) since fiscal
1990. The fiscal 2006 survey, however, differed in nature frompast surveys. Prior to launching the fiscal 2006 survey, JCCP
issued a JCCP Activity Review, a comprehensive report on
the results and issues of JCCP activities, based on a review
of JCCP’s performance over the past 25 years since theorganization’s establishment. The report stated that “countryspecific programs should be enhanced with respect to majorcounterpart countries, based on an accurate assessmentof the status of Japan’s seeds and oil-producing countries’
needs,” and recommended the utilization of the DS survey
for that purpose. In response to this recommendation, JCCP
has conducted the fiscal 2006 DS survey mainly to acquirebasic materials for the formulation of the country-specificprograms, slated to commence this year. Consequently, thefiscal 2006 survey differed from previous surveys in thefollowing aspects.
Firstly, past DS surveys have been conducted under certain
themes (quality management, environmental management,etc.), and have focused on identifying technological issues
that the DS sectors of oil-producing countries are facing,accompanying major changes occurring in the businessenvironment in those countries. The recent survey was acomprehensive survey with no specific theme.
Secondly, the recent DS survey included an analysis of thechanges in the macro environment (political, economic, andsocial situations) in major counterpart countries, and aimed
to shed light on the background to various issues confronting
the DS sectors in those countries as accurately as possible, in
relation to the changes in the macro environment.
Finally, the recent survey involved detailed studies thathighlighted the distinctive situations in each counterpart
country, and how they affect the response of those countries
to various issues confronting the DS sectors—for example,

their response to changes in the demand structure, response toenvironmental issues, including product quality improvement,
measures to strengthen profitability, and measures for humanresources development.
The fiscal 2006 survey covered seven Middle East oilproducing countries, including Saudi Arabia, Kuwait, UAE,
Qatar, Oman, Iran, and Iraq. However, sufficient results havenot been obtained for Iraq, compared to other countries,
because the survey team was not able to conduct an on-site
survey, and had to resort to available information in Japan.

2. Overview of the FY2006 DS Survey(1) Macro Environment in the Surveyed Countries
The fiscal 2006 survey aimed to carry out a detailed
assessment of specific changes in the macro environment(political, economic, and social situations) surrounding the
DS sectors in the Middle East oil-producing countries. The
economic and social issues in each country differed according
to the size of their economy, population, and population
composition (proportion of young people). Therefore, thesedifferences must be taken into consideration when formulating
country-specific programs. However, many other factors were
found to be common to all countries. For example, the ratio of
the young population has increased along with rapid population
growth in the countries, and changes in the economic structure
have promoted urbanization. These factors have brought
structural changes to the oil and natural gas industries, which
form the economic foundation of the countries. Moreover, thecountries are more or less committed to implementing serious
reforms (diversification of the economic foundation, creationof employment opportunities, etc.) in order to break awayfrom their status as a mono-culture economy dependent onoil, and develop industrial human resources. Particularly in
Saudi Arabia, where some 200,000 people, corresponding to
the population of Qatar, graduate from universities every year,
the creation of employment opportunities and establishment

As introduced in the article by Mr. Kusumoto on page 14 of this edition, JCCP formed a special Study Group for
implementing the FY2006 Survey on Downstream Trends in Oil-Producing Countries. This overview was compiled by
the Study Group, and does not necessarily reflect the views of JCCP.

JCCP NEWS No. 97 August 2007

• Reference • 29

of vocational schools are issues of immediate concern. The
country is therefore strongly seeking cooperation for its new
industry-building policy and human resource development
efforts, in the form of joint ventures with Japanese companies.
Meanwhile, to correct disparities between cities and regions,
Saudi Arabia is inviting companies and industries that will
employ and train Saudi workers, under a regional economic
city construction concept (concept to construct an industrial
park in the regions and promote new industries).
In response to changes in their macro environment, notonly Saudi Arabia, but all other surveyed countries as well,are pushing forward measures for promoting employmentof national workers and economic structural reforms. Their
immediate concerns, however, lie in resolving the issue ofmismatched employment opportunities among the younger
population and correcting urban and regional disparities.
(2) Issues Confronting the DS Sectors in the
Middle East Countries
The recent DS survey has confirmed that oil refining
companies and refineries in the surveyed countries are infact facing various issues arising from the above-mentioned
changes in the macro environment. However, their responses
and the extent of their responses to those changes differ
according to country. Some are making considerable progress,
while others require greater efforts. JCCP activities in thesecountries must therefore focus on providing individually
beneficial supports.
1) Structural changes in demand
Rapid population growth over a short period of time has
increased the proportion of young people in society. Thischange in population composition, combined with increasing
urbanization and improved consumer living standards, hascreated increased demand for gasoline. Iran, for example, must
now import a considerable amount of gasoline for domestic
consumption, even though it is itself an oil-producing country.
Demand for gasoline is continuously increasing in Iran, partly
because of low-priced gasoline financed by subsidies. On theother hand, production capacity continues to be inadequate.
Given this situation, the country is urgently seeking measures
to establish an international cost structure, and to increase
gasoline production capacity. It is also promoting the
introduction of heavy oil cracking units and processing ofoil residues.
2) Quality improvement of oil products
Improving the quality of oil products, such as by lowering
their sulfur content, is not only important as a countermeasure

30 • Reference •to environmental issues in oil-producing countries. It is also
necessary in terms of complying with regulations in Europe
and other importing countries, to increase exports of oil
products. Qatar, for example, possesses refining facilities
capable of producing diesel oil and other oil products thatsatisfy the Euro4 standard (50 ppm sulfur). Kuwait has also
increased exports of gasoline and diesel oil distillates toEurope and the U.S. in recent years. To respond to demands
for high quality products that comply with environmental
regulations in the importing countries, it is striving to increase
production of high-quality gasoline, desulfurized diesel oil,and other export products, by hydrocracking heavy oil.
3) Responses to environmental problems in the oil
refining sector
As international efforts to address global environmental
issues continue to increase, oil-producing countries are also
showing increasing awareness of the urgent significance of
their oil industry to address environmental issues. Kuwait has
already taken measures to minimize flare gas and prevent gas
leaks. UAE is currently installing flare gas recovery units
under the scope of a JCCP project. Iran, UAE, and some othercountries are implementing plans to introduce an HSE (health,safety and environment) management system.
4) Strengthening profitability
Improving profitability with an eye to achieving
financial self-sufficiency and “nationalization” of workers
is a common issue among the refining departments ofnational oil companies in the surveyed countries, and all
countries are initiating various efforts aimed at improving
profitability. Many refineries in the surveyed countries
have established goals for profitability improvement basedon the Solomon survey (relative comparison program forrefinery competitiveness). Saudi Arabia, Kuwait and Qatar,in particular, are actively pursuing increased efficiency inrefineries, operational improvements, maintenance efficiency,
and improved facility reliability, in the race to become thepace-setter (global standard) in Europe and the U.S.
Additionally, the majority of the surveyed countries areworking to strengthen their profitability by upgrading heavy
oil and integrating their oil industry with the petrochemicalindustry. Saudi Arabia, for example, is implementing a
policy for securing the maximum amount of light crude oilfor exports, by requiring existing refineries to handle larger
amounts of heavy oil than ever before, and designing newrefineries to process Arabian Heavy feedstock. To produce
oil products that comply with EU and U.S. standards, thedomestic refineries are also expected to install diesel oil
desulfurization units and hydrocracking units. Furthermore,

JCCP NEWS No. 97 August 2007

the country is integrating the oil and petrochemical industries,
as seen in the Rabigh Refinery expansion plan, as a key
strategy toward improving added-value of oil products anddiversifying the oil downstream business.
5) Human resource development
All the countries surveyed in the fiscal 2006 survey face
problems in human resource development, but the problems
differ according to country. For example, in Saudi Arabia
and Kuwait, developing human resources in the maintenancesector, which is entrusted to private companies, is a priority
issue, particularly from the perspective of promoting
employment of nationals hereafter. Saudi Arabia is also
placing emphasis on securing “quantity” of workers at its newrefineries, because it needs to create employment opportunities
for young workers and correct regional and urban disparities,
simultaneously, while Qatar is primarily seeking to improvethe “quality” of management-class workers. Meanwhile,
UAE is aiming to “nationalize” refinery operators, and Iranis working to develop human resources capable of promoting
privatization.
(3) Expectations of JCCP Cooperation
As discussed above, refineries in the countries of the
fiscal 2006 survey face various issues accompanying changes
in the macro environment (political, economic, and social
situations). They are each addressing those issues in theirown way, but because the issues are becoming increasingly
complex and multidimensional, expectations of cooperationfrom JCCP appear to be growing stronger than ever.
In regard to personnel exchange programs, the countries
have expressed strong desire for tailor-made programs,
including the dispatch of Japanese experts who are well-versedin the situations of their respective countries. Saudi Arabia
and Qatar have also expressed interest in programs for the
petrochemical field, reflecting their measures to integrate theoil and petrochemical industries.
In terms of technical cooperation projects, the countries
have shown strong interest in specific technical fields(processing of heavy crude, energy conservation, long-term
stable operations, etc.) related to environmental measures andincreasing profitability. As they are fields to which Japan cantransfer technology and abundant experience, it is important
to enhance such meaningful technical cooperation in thesurveyed countries.
The recent DS survey sounded out the opinions ofrefineries in oil-producing countries that have been surveyed
in relation to their cooperative potential, regarding a proposal
to employ the total plant management (TPM) system. The

responses of the refineries varied.
To respond to the diversifying needs of the surveyedcountries, JCCP will need to consider its seeds from a slightly
broader perspective than the conventional viewpoint, andpropose visual possibilities of applying Japanese-style refinery
management (TPM) to oil-producing countries with an aim
toward contributing to their nationalization policies, as well
as of specific concepts of technical cooperation projects.
(4) Future Issues for JCCP Activities
The recent DS survey has found that the issues confronting
oil refining companies and refineries in the surveyed countries
reflect changes in the macro environment, and are becoming
increasingly complex and diverse. To deal with those issues,
the expectations of these countries toward JCCP havebeen growing stronger than ever before, and JCCP should
concentrate on responding to those expectations, by promptly
establishing a working group for launching country-specificprograms and providing effective cooperation to each majoroil-producing country.
In formulating these programs, the DS survey should
be used effectively as a tool for identifying specific needs
that have emerged in each country accompanying changes
in the macro environment. Full advantage should also betaken of JCCP’s personnel exchange activities and technicalcooperation projects. At the same time, flexible thinking is
also important, to compensate for matters that have not yet
been fully addressed by JCCP activities. With that as a basis,
JCCP should implement projects that truly respond to theneeds of major counterpart countries, and that are appreciatedby executives of oil policy institutions as significant projects,
in a timely and steady manner, in line with the programs. It
should also promote further acknowledgement and evaluationof JCCP activities, and create a framework for networking
executive officers of oil policy institutions in oil-producing
countries. In this regard, future DS surveys should beconsidered a vital tool for collecting relevant information forthe country-specific program working group.
The recent DS survey has also found that the surveyedcountries are implementing medium to long-term measuresfor new industry-building and human resource development,
as a means for breaking away from a mono-culture economy
dependent on oil. It is highly likely that these measures may
require cooperation from Japan that cannot be addressed by
JCCP alone. Therefore, it will become extremely important
to strengthen partnerships with other Japanese organizations
engaging in cooperation to oil-producing countries, andestablish a framework that maximizes their characteristics,
to provide comprehensive cooperation.

JCCP NEWS No. 97 August 2007

• Reference • 31

Personnel Changes
Outgoing Personnel

Incoming Personnel

Junichi HATANO

Katsuo YOKOYAMA

Yoshiaki TOZAWA

Katsuo KIRITA

Toshinobu ISHIKAWA

Wataru MAEKAWA

Yuji ISHII

Nobuyuki TANEDA

Tetsuji TAKEMURA

Takeyoshi HAISHIMAManaging Director

Training Department

Technical Cooperation
Department

Japan Cooperation Center, Petroleum (JCCP)
Sunshine 60 Building 58F, 3-1-1 Higashi-Ikebukuro, Toshima-ku, Tokyo 170-6058, Japan
Phone: +81-3-5396-6000
Fax: +81-3-5396-6006
E-mail: webmaster@jccp.or.jp
URL: http://www.jccp.or.jp

32 • Announcement •JCCP NEWS No. 97 August 2007