Dear colleagues,

We’ve worked together seriously and transparently for three

years through which we exerted tremendous efforts to develop

ostensibly the oil sector. I’m really proud of the positive steps we

successfully initiated in several fields in an aim to develop and

rehabilitate the national personnel to enable them to undertake

the responsibility of internal and external projects as well as

applying the best practices and criteria approved in oil industry

internationally.

It’s my pleasure to retire as a Chief Executive Officer

of Kuwait Petroleum Corporation after serving for 32 years

approximately in the oil sector. Through these years, I’ve got

practical experience in numerous fields; in addition, I’ve gained

sincere brothers and sisters for whom I keep in mind good

memories. Anyhow, I would like sincerely to thank you for your

support throughout my service.

Dear brothers and sisters, I bid you, as your usual habit,

to positively cooperate with the new chairman to resume the

progress of the oil sector to reinforce the status of KPC and its

subsidiaries internationally among huge oil companies for the

good of our beloved Kuwait.

I thank Allah, the Almighty, that I leave my place with an

honest and sincere successor. Anyhow, this is the way of life;

however, I will always be your elder brother and sincere colleague

who will support you even after retirement.

I hope I managed successfully to undertake my responsibilities

during the past period as you were the best support for me. I really

appreciate your collaboration since we worked as teamwork. I

will definitely never forget this phase in my life; however, I bid

you to remember me and forgive any stumble.

Saad Ali Al-ShuwaibChief Executive Officer

Dialoguewith CEO

In This Issue..

KPC News Team:Media Relations Dept.

Fax: 24994991Email: media@kpc.com.kw

George Walther...and positive speech

Events 3

In This Issue 8

Compensations Window 13

Participation 14

2

105

KPC provides Egypt with fuel

Al-Abdullah sponsoring 3rd contest of Kuwait Science Fair

By Al-Assriya Pringing Press

4 10

For the third year successively

Al-Abdullah sponsoring Kuwait Science Fair

HE Oil Minister, the Minister of In-formation and Chairman of KPC board of directors Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah will patronize for the third suc-cessive year Kuwait Science Fair in cooperation with Exxon Mobil Exploration & Production Kuwait Limited and Kuwait Energy Com-pany besides a number of authori-ties and concerned companies in science and technology on top of them KPC.

On this occasion, Mrs. Wasmiyah Al-Mashaan, Public Relations Team Leader and KPC’s representative in the press conference convened in Kuwait’s Chamber for Commerce and Industry on Sunday Sept. 26, 2010, said that KPC sponsors such incidents to urge the future genera-tion to undertake the full responsi-bility in the future believing in the importance of investing in scientific projects. She added KPC is also in-terested in providing them with op-portunities to help inspire Kuwait’s young innovators into application of math and science in a competi-tive setting to improve their creativ-ity in favor of themselves and their beloved Kuwait.

It is worth mentioning that com-petition of Kuwait Science Fair in-cludes two phases; the first phase includes visits to governmental and private schools to collect eminent ideas; whereas the second phase is tasked to amass the best 100 ideas to nominate the winners.

2 E V E N T S

As his usual habit

CEO receiving congratulators

Kuwait Petroleum Corporation’s Chief Executive Officer (CEO) Mr. Saad Al-Shuwaib received person-nel who came to congratulate him on the advent of Eid Al-Fitr at the Diwaniya of the oil sector on Tues-day Sept. 14, 2010.

The reception party was attended by managing directors and their deputies, managers of various de-partments and a large number of KPC's personnel.

3E V E N T S

To cement collaboration between the two countries

KPC signs a contract to export diesel and planes’ fuel to Egypt

rector of International Marketing Sector at KPC, whereas the Egyptian side was represented by Mr. Mohammed Shuaib, Deputy Chief Executive Officer of Public Authority for Petroleum.

On his part, Al-Houti stressed the impor-tance of bolstering cooperation between the two countries in this domain since KPC has a long-term contract of crude oil with Egypt; in addition, Kuwait Foreign Petro-leum Exploration Company (KUFPEC) has numerous projects in Egypt. He further disclosed that Kuwait is gearing currently up a study to meet Egypt's needs from liq-uefied petroleum gas.

He pointed out this contract matches with KPC strategic vision which is aimed to fortify its existence in international mar-kets as well as selling its products through long-term contracts for consumers. He added KPC tends to expand its existence in the African markets as Egypt is one of the consumer countries whose economy is stable, hoping this contract is a window to the rest African countries.

The signing celebration was attended by Middle Derivatives Sales Manager Mr. Anwar Abdullah Al-Ma’touq, Marine Manager at KPC Qahtan Al-Abdulkarim, Sales Team Leader Emad Abdulrahman Al-Kandari and Chairman of KUFPEC, Egypt

Kuwait Petroleum Corporation repre-sented by International Marketing Sector has signed recently an accord with Egypt represented by Petroleum Public Author-ity to provide the latter with diesel and planes’ fuel for three years starting Janu-ary 2011.

Accordingly, the Egyptian side will be pro-vided annually with roughly one million metric tons of diesel; whereas the an-nual quantity of planes’ fuel is estimated to 200,000 metric tons. However, these quantities can be increased annually in line with the two sides’ agreement.

The accord has been signed by Mr. Ab-dullatif Abdullah Al-Houti, Managing Di-

4 E V E N T S

branch, Dr. Saeed Sa’fan.

Moreover, Al-Houti extended on behalf of the higher administration special ap-preciation to the teamwork of Middle De-rivatives Sales Department and all depart-ments of International Marketing which took part in achieving such contract in a record time, in addition to KUFPEC branch in Egypt and KPC’s delegation as they put forth diligent effort to succeed the mis-sion.

It is worth mentioning that the contract is

the fruit of several discussions conduct-ed with the two sides through an ear-lier visit paid by a delegation from KPC represented by its Chief Executive Officer Mr. Saad Al-Shuwaib, Managing Director of International Marketing Sector and Deputy Managing Director of Market-ing Middle Derivatives, Fuel and Special Products. During the visit, they tackled ways of cementing mutual cooperation and providing the Egyptian side with its needs from petroleum derivatives and gas in particular.

5E V E N T S

KPC hosting “Challenges of Heavy Oil” seminar

Research and Development Depart-ment organized a seminar dubbed “Challenges of Heavy Oil” on Monday 27 Sept, 2010 at the auditorium of the oil complex. A large number of oil ex-perts and petroleum engineering such Chevron Co, Saudi Arabia branch, Shell Co, Kuwait branch, Kuwait In-stitute for Scientific Research (KISR), Kuwait University (KU) and Kuwait Oil Company (KOC) took part in the semi-nar.

In his inaugural speech, Mr. Hashim Al-Rifaai, Planning Managing Director, welcomed the attendees and pointed out that Kuwait prioritizes the need of developing the technologies of heavy oil to meet the international demand. He said it seeks also to surmount all environment challenges concerning the carbonic emissions particularly it possesses large quantities of heavy oil in shallow depth; consequently it re-quires technologies basically depend on steam and heat to pump oil to the surface.

The seminar included a number of lec-tures included a presentation and as-sessment to the local experience of the thermal treatment technologies for Fars Layer which was given by Dr. Ab-dullah Al-Ajmi, Petroleum Engineering Professor at Kuwait University (KU).

Moreover, Mr. Vincent Dewulf from Shell, Kuwait branch, gave a lecture themed “Gasification of oil” and Mr. K. El-Enezy, from KOC, gave a lec-ture labeled “Challenges of Develop-ing South Ratqa Lower Fars Heavy Oil Field”.

6 E V E N T S

Sheikh Talal Al-Khalid, Managing Director of Gov-ernmental, Parliamentary, Public and Media Relations, patronized, pursuant to his annual habit, the conclud-ing celebration of the 10th contest of the holy Qur’an which is held in cooperation with Jabriya Coopera-tive Society on Thursday Sept. 2, 2010 in Al-Kandari Mosque in Jarbiya.

The celebration was commenced with verses recited from the holy Qur’an followed by a speech given by Sheikh Talal who extended his pride with the memoriz-ers of the holy Qur’an.

He further urged them to be necessarily committed to the holy Qur’an instructions and directives; in addition to applying them practically in their life.

Sheikh Talal appreciated after that Jabriya Cooperative Society’s efforts that are epitomized in providing all possibilities for those memorizers of the holy book.

Al-Khalid finally distributed awards and appreciation certificates to participants wishing them more progress and success.

Marine Club honoring KPC

Kuwait Sports Marine Club honored Kuwait Petroleum Corporation (KPC) for its patronage to the 22nd diving jour-ney in the celebration of distributing the Amiri Trait to sailors who took part in the journey.

The celebration was convened at the club’s headquarters in Salmiya on Tues-day August 31, 2010.

Representing the corporation in the honoring celebration, Mr. Ali Murad, Manager of Public Relations, applauded the role of the club in patronizing the diving journey which is one of the Ku-waiti authentic heritage.

He confirmed KPC is wholehearted to sponsor such incidents which take part in building an aware generation that realizes well the importance of the past and its significant participation in devel-oping the present.

Al-Khalid sponsors memorizers of holy Qur’an

7E V E N T S

In September 1960, the five developing countries Kuwait, Saudi Arabia, Iraq, Iran and Venezuela held a meeting through which they announced the estab-lishment of the Organization of Petroleum Exporting Countries (OPEC) in an aim to coordinate and unify the petroleum policies; in addition to providing appropriate methods to stabilize prices. It is tasked also to defend the interests of the exporting countries and achieve stable and lucrative revenues.

In spite of the unstable and fluctuant international cir-cumstances at that time, OPEC managed to carve its name in the international oil market as well as accom-plishing its focal goals.

At that time, huge industrial powers were dominating the oil market; yet the organization managed to prove itself as an independent authority that is able to protect the dominative rights of the developing countries over their national resources; thus it is appreciated by each country all over the world.

Within the past 50 years, the international oil market faced several fluctuations; yet OPEC has remained com-mitted sincerely to its main goals which are epitomized in protecting the interests of the member countries and securing stable income for the producing countries as well as providing effective and regular supplies to the

OPEC marks its 50th anniversary

8 In This Issue

consumer countries with reasonable prices.

Moreover, OPEC has fortified its extensive role inter-nationally as it founded OPEC Fund for International Development to grant donations to developing coun-tries. In addition, this Fund has other affiliated national institutions tasked to provide assistance to the member countries.

The member countries

OPEC member countries are enrolled as follows: Qatar in 1961, Indonesia in 1962, Libya in 1962, United Arab Emirates in 1967, Algeria in 1969, Nigeria in 1971, Ecuador in 1973, Gabon in 1975-1994 and Angola in 2007 besides the five founder countries.

It is noteworthy that the first headquarters of the or-ganization within the first five years was in Geneva, Switzerland and it was moved to the Austrian capital Vienna on September 1, 1965.

OPEC portfolio

It is worth mentioning that OPEC portfolio is comprised of twelve crude oil including Basra light oil, raw sea lev-el, Saudi light crude, Nigerian Bonny light, Libyan raw lotus, ore Murban Arab Emirates, the raw deserts of Algeria, Girassol Angola, the OCC from Ecuador, Iran’s heavy, the Kuwaiti export crude, and the Venezuelan PCF 17 crude.

As the portfolio is a mixture from heavy and light oils,

its price is usually less than the price of Brent and West Texas.

However, the prices of these crudes differ according to their specific weight and the quantity of sulfur as well as their geographic location; thus the price which the member countries receive is less than the prices of crudes which are mentioned by media.

Furthermore, OPEC’s policy of productivity depends ba-sically on the arithmetic mean of the portfolio’s price.

Although OPEC has adopted the portfolio since 1987, the importance of the portfolio surfaced in 2000 when the organization espoused the price range which ne-cessitates changing the production policy to keep the portfolio’s value which is estimated between $22-28 per barrel.

9In This Issue

G. Walther lecturing about the power of positive speechKPC believes sturdily that the real fortune isn’t only embodied in the quantity of oil that is produced or marketed, but it is epitomized also in workforce that is the main element takes part in developing the oil industry and utilizes best this black gold in favor of Ku-wait’s oil sector.

Definitely, KPC message which is aimed to support and develop the national personnel confirms this belief. Thereby, the corporation allots studied policies to get through any challenges the oil sector confronts such as the goal of rehabilitating and sponsoring, as per inter-national criteria, a number of personnel specialized in oil and gas field to lead the oil sector.

Indisputably, the skills required for any field are no lon-ger specified in the technical side as there is also a need

to deal with international new developments in all fields. Thus, the task which the oil sector’s concerned employees undertake has got new dimensions that ne-cessitate developing constantly personnel’s abilities to accomplish the sector’s hopes.

From this point, KPC represented by Training and Ca-reer Development Sector launched an initiative epito-mized in hosting a number of renowned international experts in training field to convey their expertise to its personnel among them was Mr. George Walther who was received recently to highlight ways of handling negatives and achieving efficiently work duties.

On this occasion, Mr. Abdullatif Al-Houti, Planning and Career Development Department Manager, declared that Training and Career Development Sector headed by Sheikha Shatha Al-Sabah puts manpower on top of its priorities. “This actually is highly observed in the programs and plans which the sector carries out and include meetings aimed to improve and develop per-sonnel in KPC and its subsidiaries.

E V E N T S10

To bolster Kuwaiti-Chinese relations

KPC taking effectively part in Chinese confab for tankers

Pursuant to its keenness to bolster the reputed rela-tions with Republic of China, Kuwait Petroleum Cor-poration represented by Marine Team participated in the annual conference of oil tankers held in Shanghai, China on 8-10 September 2010.

The 2-day conference was attended by Mr. Yasser Al-Trakmah, Analyst Chartering and Mr. Qahtan Al-Ab-dulkarim, Marine Department Manager, who briefed through a presentation the new developments of pro-

ductivity in the local oil sector and the levels of produc-ing crude oil.

He also threw more light on the higher administration’s future visions and projects which will be allegedly car-ried out to amplify productivity in addition to the refin-ing capability of Kuwait.

He underscored KPC’s plans which are aimed to increase the number of oil tankers of the national fleet on the short-run, indicating to investment projects which the corporation is implementing in China and Vietnam.

On the sideline of the conference, the Kuwaiti delega-tion met with official representatives of Chinese oil tankers companies.

They furthermore tackled issues of mutual interest and ways of fortifying cooperation with KPC particularly af-ter the Chinese side has made sure of KPC's keenness on transporting crude oil from all over the world to China through its arm represented by Kuwait Oil Tank-er Company (KOTC).

E V E N T S 11

... and launching an awareness campaign to mark Int’l Day for the Preservation of Ozone Layer

To dodge accidents

HSE Committee launches a campaign to use elevators wellPursuant to KPC tendency aimed to reinforce the per-formance of health, safety and environment as per the international criteria, Health, Safety and Environment (HSE) Higher Committee launched its awareness cam-paign to let KPC’s employees be acquainted with the best way of using elevators inside the oil sector. This campaign however coincides with several notices and complaints submitted by several employees about the wrong way of using elevators.

The campaign focused basically on the ways of best us-age of elevators as well as cooperation to dodge any obstacles the employees can confront while using them; thereby, guidance messages have been fixed at elevators in this respect.

Environment & Oil Leakage Control Depart-ment initiated an aware-ness campaign on Sep-tember 16, 2010 about Ozone layer coinciding with the International Day for the Preservation of Ozone Layer and in accor-dance with KPC’s tendency embodied in underscoring issues related to health, safety and environment.

On this occasion, the de-partment distributed envi-ronmental brochures and flyers to all KPC person-nel to let them be aware of how to expose gradu-ally of harmful substanc-es which deplete ozone layer.

It is worth mentioning that KPC’s eminent par-ticipation is in line with Montreal Protocol.

E V E N T S12

the insured employee died.

Rules of calculating pension

1- Pension is calculated in the amount of 65% of the last monthly salary for the period of subscription which is 15 years; however, it is increased by 2% every year more than the fifteen years of subscription up to 95% of the salary maximum.

2- Pension is due in case of end-ing the service of the employee because of death, total inability, depleting the sick leaves, the lack of healthful fitness or any other health conditions that menace the life of the insured person. In case the insured person’s service is terminated due to death or to-tal inability, the rest period is add-ed to the subscription period until reaching the age sixty.

3- Pension is cut down by 5% in case of submitting resignation at age less than 45. Moreover, it is reduced by 2% in case the age of resignation is between 45 and 52. Yet, the pension of the female employee who has children and married for more than two years is not cut down.

4- The minimum pension of the employee who has five children and upward is worth KD 650 monthly.

In this article, we will spotlight the social security system in State of Ku-wait, the conditions and regulations of getting pension.

We’re proud that Kuwait applies a wonderful system of social security which covers all citizens irrespec-tive of their activities in the society whether they are working in the public or private sector or for them-selves. This system encompasses parliamentarians, members of the Municipal Council, mayors, traders and even those who have private trade or activities such as physicians, engineers, lawyers, shop-owners as well as Kuwaitis working abroad.

The resources of Social Security System:

Social Security System is mainly based on self-finance embodied in subscriptions which are collected from the insured person, the busi-nessmen and the country’s treasury. Accordingly, the insured person or the employee pays 7% of the salary; whereas the businessman pays 11% of his monthly salary.

As it is known, the basic insurance system covers the monthly salary up to KD1250 maximum, but, the integral insurance system covers the monthly salary starting KD1250 up to KD2500 maximum; however, the social insurance system encompasses the two above-mentioned systems.

Due pension

Pension is the most prominent right guaranteed by law in favor of the in-sured person who deserves the pen-sion in case of terminating his service because of death or health reasons;

moreover, he deserves pension ac-cording to the following cases:

To terminate the service of the fe-male employee who has children and the employee who has been mar-ried for two years in case the period of her subscription is minimum 15 years before the date 1/7/2004 or if she is 40 and the period of her sub-scription is 15 years minimum before the date 1/1/2010 or the one who is 43 years old currently. However, the condition of the age is gradually in-creased until it reaches 50 by 2020.

Furthermore, the female employee who has served for 15 years and her age is only lesser than the above identified age five years maximum can apply for pension; but in this case the due pension will be cut down.

It is necessary to terminate the ser-vice of the unmarried male and fe-male employee whose period of subscription in the insurance system reached 20 years in service and the age in 48 currently. Anyhow, the condition of age will be gradually enlarged up to 55 by 2020.

It is allowed to terminate the service of the employee who sponsors a dis-abled husband or child in case her period of subscription is 15 years ir-respective of the age.

Furthermore, the law of social in-surance allows the beneficiary to replace part of the pension through a one batch of money; in addition, Public Authority for Social Security (PASS) cashes a donation epitomized in a salary of two months cashed once only in case the beneficiary or

(4) Social Security System...Conditions of due pension

By Ibrahim Awadh, Compensations Department Manager

COMPENSATIONS WINDOW 13

Many employees work very hard to achieve their personal goals think-ing that these goals would help them to excel in the their careers. Sometimes, personal and career goals are a perfect match because the individual had planned it that way. We all have needs that appeal to us. We would like to achieve them but they do not help us to climb that steep professional lad-der to reach the desired promotion or salary increment.

Reading the following pages would help identify your personal strength and weakness as well as guiding in converting the weak-ness to a strength to reach your challenging goals. The last page would help the reader to compare his or her personal goals with their organizational goals. The reader is asked to match his or her goals with the career goals and try to tar-get a common goal that develops him or her to achieve the organiza-tion's objectives.

Strengths and Weaknesses

One should understand and list his or her strengths and weaknesses without overstating the strengths or exaggerating the weaknesses.

Some of us would love to blame their weaknesses on "the system"

or "personal issues" or the usu-al phrase "they simply don't like me!"

We need to start this exercise by admitting that we are human be-ings and we have weaknesses. The best way to find our weaknesses is to remember the time we asked others for help, or we looked up the internet for information but could not quite understand it. For example, if you are specialized in mechanical work but you call one of your friends for a financial ad-vice, then you should know that finance is a weak point in your pro-fessional career.

Situations like these expose our weaknesses and we should make a note of them for future develop-ments.

Strength is when others come fre-quently for our help on specific subjects or skills. Some skills we master but they are to be exposed or known to our colleagues and superiors.

We need to show our skills and hobbies to people around us to give them a chance to ask for our help in the future.

We should always sharpen our strengths by learning and practic-ing.

We should constantly learn and practice something everyday, no matter how small it is, to help us turn our weaknesses to strengths.

For example, if we learn everyday one command or function of one of the most popular computer applications, then we will learn at least twenty functions in one month which is enough to handle that application with great convey-ance.

Continuous improvements might seem small but they are an excel-lent method for long-term person-al development.

Incremental improvement may boost our capabilities at the mo-ment of completion but rest of the time we are missing the opportu-nities to develop while others are moving steadily in there develop-ment plans everyday.

Some of us have clear goals that are more wishful than realistic. Winning the lottery can happen but there is little chance that we are all going to win. Also, there is nothing we can do to improve our chance to win the lottery other than losing our money in buying more lottery tickets.

Personal goals should be realistic and achievable in the time frame

My Personal GoalsDo they match the organization's goals?

Sami MalallahOperations Department Manager, KNPC, (MBA)

P a r t i c i p a t i o n14

we select for them. Engineering de-gree needs four years to complete, aiming for the same degree in two years is either crazy or illegal.

Most of our personal goals can be achieved with our strengths; how-ever most of the challenging goals are beyond our capability and we need to learn new skills or gain new knowledge to achieve them.

We should understand that per-sonal goals are personal and they might not be inline with the orga-nization's goals.

For example, your personal goal might be learning to swim, which is a good personal goal. But your employer is trying to construct a new project in a remote area far-away from the sea or a swimming pool, so you will not be able to achieve your goal soon.

Our personal needs should be con-verted into specific goals that have objectives and target dates. The plan to achieve the goals might need new skills and knowledge that is part of our familiar weak-nesses list.

We need to learn the new skill or

knowledge before or during our attempt to achieve the goal.

We need to write our personal goals in a list, then rank them ac-cording to their importance and urgency. We should concentrate our time and effort on 2 to 5 goals until we achieve them . Some of us can focus on more than 5 goals but this depends on the available time, effort and the goals diffi-culty.

We should understand that some of the goals are nice to have but might not contribute to our per-sonal development or help in achieving one of the organiza-tion's goals. For example, I would like to learn how to fly an airplane and I also to fall freely from an elevation to parachute my way down to the ground. But, this will not help me develop my mana-gerial and skills, or to help me achieve my organization's goals. Flying and parachuting are good sports but they are not my best choice for the valuable time and effort now.

The organization that we work in

must have a list of objectives and clear goals to achieve them. Every employee should be able to use his or her skills and competences to drive the organization towards meeting the goals. These goals are not personal and they do not meet the top touch management's personal needs. They were set to maximize the shareholder value, or in plain English, to make money! Organizational goals are to meet the business challenges and take advantage of the available oppor-tunities in the near future and on the long run.

We should align our personal goals to learn the required skills and gain th knowledge necessary to overcome the organizational chal-lenges and take advantage of the available opportunities.

Definitely, we will be seen as self-ish and opportunistic if we use the company time and resources to meet our personal goals which are not part of the organizational goals. We might be enhancing our personal skills but we will be ruin-ing our relationship with the peo-ple around us.

P a r t i c i p a t i o n 15

Sarah BanianInformation Technology

Moudi Al-Sabah

Compensation Department

Zeina Ahmad Hajji Information Technology

Khaireyah DashtiMarketing Research

Faisal Al-HaddadMarketing Planning

Sarah HasanPlanning & Career Development

Jaber Ahmad Al-SabahMedia Relations

Rawabey Al-BanayMedia Relations

Zeinab Hassan MohssenPublic Relations

á``«`bô`à`dG ∑hô``Ñ``ePromotions

d nouri@kpc com kwFor more information please contact Miss Dalal Al-Nouri : Tel. 4782 Email: d.nouri@kpc.com.kw

It is the pleasure of KPC News staff to extend their hearti-est thanks to all colleagues who contributed to KPC News past issues. We will be more than happy to receive even more of your contributions and ideas which will further bolster constructive cooperation and continuous progress.For more details, please contact: Haya Al-Randi - Tel: 4785,Alia Al-Jasmi - Tel: 4789, Jaber Al-Sabah - Tel: 4866

a.jasmi@kpc.com.kw j.alsabah@kpc.com.kw haya@kpc.com.kw

For your Opinions & Suggestions

16 K P C S O C I E T Y