T h e K O C N e w s l e t t e renergy is a fortnightly newsletter published by the KOC Information Team for KOC employees • Editor-in-Chief: Khaled M. Al-Khamees • E-mail: kocinfo@kockw.com • Website: www.kockw.com

25th Year - No. 570

31 October 2010

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AwardIM Team Wins 1st World Oil Magazine Award

Participation

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First Women’s Leadership & Training Conference

Achievement

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Successful Pilot to Produce 3 mmbopd

“Gas is as precious to Kuwait as oil,” C&MD, Sami Al-Rushaid, said at the commissioning ceremony of the 40-60 mmscfpd Gas Sweetening Facility (GSF) on October 19th in the Minagish Field, West Kuwait. Al-Rushaid congratulated all involved for their efforts in making the project realizable. “Five years ago, as much as 45% of gas was flared in West Kuwait. Subsequently, plans were developed to construct fa-cilities like this GSF, a gas Compressor plant, a gas re-injection plant, as well as exporting gas directly to the booster stations. These plants and the new BS-171 commissioning will enable us to reduce flaring to our end target of “zero-flaring,” he added. “This is

good for the environment and the economy.” In turn, Operations Group Manager (WK), Ali Al-Kandari, spoke about the history of the West Kuwait area when gas was burned and black smoke cov-ered the sky. “We accepted the challenge and de-veloped a road map to reduce gas flaring. Gradually, the flaring was reduced from 40% to 20%, then 13% ,and it is now less than 4%.” Al-Kandari thanked KOC management, staff, KNPC and the contractors’ efforts in making the West Kuwait air cleaner.After distributing mementos, a tour of the newly commissioned facility was made and a memorial plaque was unveiled.

Gas Sweetening Facility CommissioningAl-Rushaid: Facility Beneficial to

Kuwait Economy

31 October 2010

Targets Achieved

Successful 3 mmbopd Production Capacity Test

On October 13th, a successful test of the Company’s production capacity was carried out, and overall production of all KOC facilities (West, North, and South & East) reached 3 mmbopd. “The Company periodically evaluates its own facilities, in conjunction with those of the other K-companies, to ensure our abilities and readiness,” C&MD, Sami Al-Rushaid, said after completing the 4-day test. All facilities were simultaneously fully operational, and gas production (free & associated) was calculated at 1.55 billion cfpd. “This is the first time in the Company’s history that we have produced this amount of natural gas, with around 1.4% overall gas flaring and 0.5% in the Burgan Field,” he remarked.Al-Rushaid said that the Company sought to achieve several targets out of this test. “We tested the storage and export facilities, as well as the oil, liquefied gas and condensate pipeline flow, the maximum production capacity of all the facilities, and the LPG.”HSE procedures were strictly followed while the test was being conducted. “The facilities’ designed operational limits were not exceeded and the normal daily operations continued without interruption,” Al-Rushaid concluded.

Dear Colleagues, I am very pleased and honored to announce that KOC has successfully increased its crude oil production to 3 million barrels per day and sustained this level during the testing phase. On this historic occasion I would like to congratulate all employees, and express my sincere appreciation for the efforts exerted by all those involved, either directly or indirectly, in making this endeavor possible. This is the first occasion since recent developmental and capacity enhancement activities that the Company has taken the initiative to raise production simultaneously at all production facilities in order to maximize production potential, with the intention of proving the Company’s documented capabilities. The fact that the increased production volumes were sustained efficiently, with the highest consideration being given to HSE, demonstrates the effectiveness of our past efforts and also our capability in effectively implementing the Company’s vision. Working together as a team, the various Groups within the Assets along with our contract partners have proven that our ambitious goals can become reality. This is a proud moment for all of us and this milestone is an inspiration to continue our hard work to see our current and future efforts also come to fruition.

My heartfelt thanks go to each and every one of you.

Message fromthe C&MD

Sami Fahad Al-RushaidChairman & Managing Director

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King Mswati III of the Kingdom of Swaziland and his entourage visited the Display Center, where he was greeted upon arrival by the Ahmadi Governor, Sheikh Ibrahim Al-Duaij Al-Sabah; the Chairman and Managing Director, Sami Al-Rushaid; DMD (Administrative and Financial Affairs), Khaled Al-Khamees; and a number of company officials.The guest and his accompanying delegation were taken on a conducted tour around the Center during which they listened to a detailed account of the history behind the discovery of oil and the stages of the evolution of the industry in the State of Kuwait. Toward the end of the tour, the King received a plaque on the occasion of his visit to the Company.The guest was accompanied during his visit by the adviser at the Diwan of His Highness the Prime Minister, Head of the Mission of Honor, Ismail Al-Shatti.

King of Swaziland Visits Kuwait Oil Company

KOC and Al-Khuraif Saudi Arabia Group Company inked a KD 87.58 million deal for the construction of the new Gathering Center-16 in West Kuwait. C&MD, Sami Al-Rushaid, and CEO of Al-Khuraif Group, Sad Al-Khuraif, as well as senior management of both companies were present at the signing. “This project is part of our 2030 strategy and is intended to maintain West Kuwait’s production level of 0.5 mmbopd. We expect the new GC to be completed in a timely manner as well as adhering to KOC’s HSE regulations,” Al-Rushaid said on the occasion.

As well, Al-Khuraif confirmed that his company shall use its expertise for the construction of the GC according to international standards, while implementing the highest safety procedures. The contract period is 2 years for design/construction and 5 years for maintenance. The new GC-16 will have a production capacity of 100,000 barrels of oil per day; 240,000 barrels of water per day; 75mmscfpd of high pressure gas; and 41 mmscfpd of low pressure gas.

West Kuwait Production Capacity to be Boosted

New GC-16 Construction Contract Signed

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31 October 2010

Ahmadi Hospital Maintenance Team Organizes Contractor Safety Meeting for A&F Directorate

A Business Lunch between DMD Al-Sardi and Samsung SDS Officials

With a view to encouraging safety performance amongst contractors, the Ahmadi Hospital Maintenance (AHM) Team conducted a safety meeting for all contractors of the A& F Directorate. The meeting was chaired by the Manager - Ahmadi Services Group (AS), Mustafa Bu Megdad, and led by the Team Leader - Ahmadi Hospital Maintenance, Engineer Tareq Al-Kharraz. Other Team Leaders from the Ahmadi Services Group and about 120 personnel attended the meeting. The Manager opened the meeting by highlighting the importance of safety, and congratulated the contractors for improving the safety culture in and around

A business lunch was held at the Guest House involving the Deputy Managing Director for Technical Services, Mazen Al-Sardi, and the Executive Director and President of Samsung SDS, In Kim, along with a number of officials, in order to keep track of the implementation of the Company’s integrated security system.In an exclusive statement to energy, the DMD noted that the Company has contracted with Samsung to implement a state-of-the-art security system in the Company. He described the contract as one of the largest in the world in the area of security and safety. Al-Sardi added that the project is to enhance

Ahmadi. Bu Megdad commended the role of the project engineers and safety personnel in leading and improving safety performance. For his part, Al-Kharraz outlined the objectives of the meeting, and reiterated his determination to work hand-in-hand with contractors to improve the safety behavior in the A&F Directorate. Safety Engineer AHM, Arun Kumar, briefed the audience about the updates in the HSEMS Guide, and five employees from different teams in Ahmadi Services were identified as “Safe Man of the Quarter” and awarded gifts & certificates.

security in all KOC assets, including the Main Office, through linking up all these facilities, and equipping them with the latest technology. He also stated that the meeting comes within the framework of mutual visits with a view to speeding up the implementation of projects.In the meantime, he pointed out that ensuring security remains a key and essential issue to the Kuwait Oil Company; hence it has created the Security and Fire Group, as well as allocated a budget in order to develop the employees within the Group.

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KOC Assumes Operation and Maintenance 132 KV Main Transmission Sub-Stations

T&CD Group Organizes Series of CoursesProgram Designed to Enhance Competencies

Following the Ministry of Electricity & Water’s decision in which KOC assumes

the operation and maintenance responsibility of the new 132 KV transmission

sub-stations, a meeting took place between the Operation Group and the energy

company Areva Training & Development Services. Group Manager, Abdullah

Al-Sumaiti, and Team Leader-Maintenance (North Kuwait), Hamed Al-Mutairi,

represented KOC, whereas Areva T&D was represented by its Kuwait: Branch

Manager, Majdi Al-Thunaibi.

Areva will provide training for six KOC engineers to manage the substations

which require international certification for operation. Areva is a renowned

international company specializing in energy projects.

In cooperation with the Petroleum Training Center, the Training & Career Development Group organized a series of courses for experienced leaders. The courses were under the direct supervision of the Group Manager, Saad Al-Azmi, and TL-CD&P, Saeed Al-Mutairi. The courses were designed to raise the efficiency of leaders through enhancing management and personal skills critical to their respective new positions, thereby paving the way for them to assume senior leadership posts. The courses, which were held in different sessions, revolved around issues

such as successful management, management skills, as well as effective negotiation. The program was supervised by Senior Training Officer, Wisam Al-Qahtani; Training Officer, Yousef Al-Azmi; and Petroleum Training Center Coordinator, Ahmad Darwish.The courses are in line with KOC’s strategy of enhancing leadership competencies.

31 October 2010

KOC Delegates Receive Laurels at SPE HSSE Conference in Bahrain

In line with the strategic objective of the Company and to enhance the corporate culture and image of the company, KOC delegates presented three technical papers and two posters on various topics related to HSE at the 5th SPE Middle East HSSE Conference, which was held from October 4-6th, 2010, in Bahrain. The first technical paper,“Leadership and Commitment for HSE Excellence – What really worked!!”, was presented by the Team Leader; HSE (WK), Ismail Mataqi and Snr. Safety Engineer; HSE (WK), Bala Siva Srikanth Adivi., who also presented a technical poster on the same subject. The second paper, “KOC Goes Live in HSE”, was jointly submitted by the HSE Systems Team and HSE (WK) Team, and was presented by Team Leader-HSE (WK), Ismail Mataqi, and

Safety Engineer-HSE Systems, Mohammad KS Mohiuddeen. The third paper, “Work Related Stress Survey for S&EK Directorate at KOC“, was jointly submitted by HSE(S&EK) and HSE (WK), and was presented by Hussain Zainab, Chief Industrial Hygienist-HSE(S&EK), and Essam Al-Kahloot, Industrial Hygienist- HSE (WK), who also presented a technical poster on the same subject.The technical poster on “Leadership and Commitment for HSE Excellence – What Really worked!!” was awarded one of the best two technical poster presentations during the closing ceremony of the Conference, which was held on October 6th, 2010.

Business Planning & Control CDU

Abu Dheir: Many Challenges Overcome

Over 850 employees of KOC distributed over 24 Job Families (JF) are under the Business Planning & Control (BP&C) Competency Development Unit.“We have exceeded our set Key Performance Measures (KPM), and reviewed and amended our plans to be in line with the corporate strategy,” the Head of BP&C CDU, Dr. Lina Abu Dheir, said. “We also outlined the necessary skills for each JF, such as training for the new technologies which the Company has just started to use. This process took us 4 months due to the high number of JFs, and the existence of a sub-family in each,” she added. “We have over-come several challenges, such as the wide distribution of employees all over the Company.”Each employee was evaluated by a “neutral” Reviewer to precisely identify the employee’s training needs in order to build the Personal Development Plan. Oth-

er needs, for example whether the employee needs local/international courses, on-the-job training, coaching, external attachment, e-learning etc., were also set. “Our success depends on the commitment of everyone involved, particularly the Team Leaders, in order to develop the employees’ skills through the imple-mentation of the training plan. This will be beneficial for the Company and on a personal level,” Abu Dheir said.Other achievements of the BP&C CDU include issuing training-related booklets such as:

Career Development Conversation Handbook•Quality Assurance Handbook•Mentoring Program Handbook•

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“We have set for ourselves ambitious and important targets, achieving of which we need advanced technology,” CITG Manager, Hisham Al-Nouri, said at the start of the Group’s workshop at the Unity Center. “Our contractors’ plans should be in line with ours, which is why we have such interactive meetings. They are the technology manufacturers; we have to tell them our needs so they can provide us with solutions and ideas, and together we can incorporate them into action plans,” he added. TL - Information Technology Planning, Jamal Al-Enezy, also spoke and outlined the Group’s five-year action plan (2010-2020) while highlighting the

The Oil Surveillance Group, represented by Petroleum Engineers, Laila Al-Bairami, Zeinab Al-Ibrahim, and Reem Al-Thufairi, took part in the First Women’s Leadership and Training Conference, which was held under the patronage of Dr. Faiza Al-Kharafi.The four-day conference, which was organized by the Family Innovation Company, discussed key issues pertaining to leadership and training in order to raise awareness about the importance of training women to assume leadership roles. The conference also aimed at encouraging women to become more involved in the work world by improving their skills and competencies.

importance of the latest technology in achieving the 2030 strategy. Al-Enezy

pointed out the Company’s efforts in acquiring highly qualified manpower,

implementing advanced HSE programs, and purchasing environment-friendly

equipment and advanced security systems.

Providers of IT products, such as networks, programs, services, equipment,

consultancy, communication, etc., were present at the workshop, and a number

of contractors were rewarded for their performance and long service.

The conference included a number of lectures and training sessions involving outstanding specialists including Dr. Tareq Al-Suwaidan, Dr. Nasef Abdulkhaleq, Dr. Ali Al-Hamadi, Dr. Mohammed Al-Alfi, Dr. Homoud Al-Qashaan, Dr. Adel Al-Zayed, and Al-Jazeera anchor, Mohammed Kreishan.The topics addressed at the conference included:

International training standards•Criteria for successful trainees•Importance of training in creating successful leadership•Training assessment •

Corporate Information Technology Workshop

Al-Nouri: We Need Technology to Achieve our Targets

KOC Participates in First Women’s Leadership & Training Conference

21 March 201031 October 2010

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Development Efforts PraisedFarewell at Research &

Technology GroupThe Research & Technology Group bid farewell to R&T (Subsurface) Team Leader, Abdul Latif Abdullah, in a ceremony in which all employees of the Group attended. “You have played a major role in the development of the R&T Group,” Group Manager, Dr. Adel Al-Abbasi, said. “”We started with four employees and grew in size and significance. Now, the R&T Group plays a substantial role in the Company.” Team Leader-E&P Information Management, Hamad Al-Zaabi, also praised Abdullah’s excellent experience and contribution.For his part, Abdul Latif Abdullah thanked his colleagues for

the family-like atmosphere in which he worked, and wished everyone continued success.

The E&P Information Management Team received the prestigious World Oil Award for “Best Data Management and Application Solution” for its SAHALA Portal. Team Leader- E&P Information Management, Hamad Al-Zaabi; Chief Analyst, Fahed Al-Dbeib; Chief Development Unit, Saad Al-Hajri; and Information System Analyst, Ben Ninan, represented the Company at the ninth annual ceremony, which was held on October 14th, in Houston, Texas, and attended by close to 300 industry leaders.Recognized as one of the industry’s most coveted awards, the World Oil Award is given for leading innovations, innovators and projects of the global upstream oil and gas industry. All awards demonstrate technical feats and thinking that significantly forward the industry’s technical development.According to Al-Zaabi, SAHALA was created to replace the other systems which no longer fulfilled E&P’s needs.In turn, Al-Hajri pointed out that SAHALA fully integrates all E&P data and immediately collects and follows the well-heads production data.“It is the main port of entry to whatever the user may need in terms of E&P data, and it connects and displays the data in text reports, lines or maps, which are connected to the GIS database. The award reflects KOC’s prominence as a leading Company in the international arena.

KOC’s International AchievementE&P Information Management Team Wins

World Oil Award