Annual Report 2013

Arabian Gulf Arabian GulfQatarAl Karkara FieldA-North FieldA-South FieldUAEEmirate of Abu Dhabi, The United Arab EmiratesAbu Dhabi CityMubarraz IslandContract AreaContract AreaUmm Al Anbar Field Mubarraz FieldNeewatAl Ghalan FieldHail FieldFY2012 PERFORMANCEIn FY2012, Abu Dhabi Oil Co., Ltd. (ADOC), Qatar Petroleum Development Co., Ltd. (QPD), and UnitedPetroleum Development Co., Ltd. (UPD) experienced stable continuous production. As a result, total oilproduction by the three project companies in the Cosmo Oil Group amounted to 41,556 barrels/day, up 7.4%compared with the previous fi scal year.Dubai crude oil was around the US$105/barrel range at the beginning of the period. This climbed to theUS$120/barrel range following suggestions that Iran would close the Straits of Hormuz toward the end ofJanuary. Fueled by renewed concerns surrounding the fi nancial crisis in Europe, the price of Dubai crude oiltemporarily fell below US$90/barrel in June. Thereafter, the price again surged to above US$115/barrel aroundthe end of September. For the full fi scal year, the price of crude oil increased US$3/barrel year on year.Accounting for this upswing in price, the Oil Exploration and Petroleum Business segment posted a ?1.7 billionyear-on-year decrease in net sales to ?85.9 billion, and a ?8.7 billion rise in ordinary income to ?60.7 billion.OUTLOOK FOR FY2013In fi scal 2013, the average crude oil price and exchange rate are forecast at US$100/barrel and ?100 per U.S. dollar,respectively. Oil exploration and production activities in the core Middle East region are expected to remain stable.Looking ahead, net sales are projected to climb ?12.1 billion to ?98.0 billion on the back of the weak yen.Taking into consideration forecast stable oil production, on the other hand, operating expenses are forecast toincrease resulting in an anticipated decline in ordinary income of ?5.2 billion to ?55.5 billion.On an individual exploration and production basis, ADOC will undertake evaluation activities including thedrilling of evaluation wells at the Hail Oil Field. After confi rming the level of reserves, steps will be taken to drillproduction wells and construct ground facilities withan eye to early production during 2016. Havingconfi rmed the existence of promising oil structures atthe AC/P4 mining lot in Australia, the drilling ofexploration wells will commence during the current year.Results will then form the basis for determiningexploration policies.Crude Oil Production by Cosmo Oil Group Project Companies in Core Areas(Barrels/day)Company Oil fi elds currently producing FY2012 FY2011 Change Investment ratioADOC? Mubarraz Field ? Umm Al Anbar Field? Neewat Al Ghalan Field21,062 22,059 -4.5% 63%QPD? A-North Field ? Al Karkara Field? A-South Field7,047 6,208 +13.5% 75%UPD ? El Bunduq Field 13,447 10,411 +29.2% 45%Total for the three companies 41,556 38,678 +7.4% ?* Production volumes are averages for the calendar year as all three companies have book-closing periods ending in December.Mine Lot Map in Qatar Mine Lot Map in Abu Dhabi