Energy is a fortnightly newsletter published by the KOC Information Team for KOC employees • Editor-in-Chief: Saad Rashed Al-Azmi • E-mail: kocinfo@kockw.com • Website: www.kockw.com

30th Year - No. 70413 th March 2016

The KOC NewsletterENERGY

Visit 2

DevelopmentD&T DCEO Honors Kuwaiti Rig Operations Engineers

CEO Visits Ahmadi Hospital

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AwarenessInsights for GUST students majoring in accounting

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KOC Hosts Think-K InitiativeSenior officials from various K-Companies attend

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KOC recently hosted a meeting of the Think-K initiative at the Unity Center in Ahmadi. Think-K plays an important role for all K-Companies by bringing together leaders from Kuwait’s oil sector to discuss current and future initiatives and projects. Think-K was attended by KPC CEO Nizar Al-Adsani, KOC CEO Jamal Jaafar, and a number of senior officials from various K-Companies. KOC CEO Jamal Jaafar delivered the event’s opening remarks, where he discussed KOC achievements and the continuous drive to develop all of the Company’s areas of work, which in addition to oil and gas production, also includes human resources and HSE.The event included presentations by a number of KOC DCEOs. Each DCEO discussed the details of various aspects related to Company activities. The first DCEO to deliver his presentation was Abdulla Al-Sumaiti, DCEO (S&EK). Al-Sumaiti delivered a presentation on Production Optimization. Meanwhile, DCEO (NK) Emad Sultan spoke about the Early Commissioning of Effluent Water Injection in North Kuwait.

DCEO (Exploration & Gas) Menahi Al-Enezi delivered a presentation that touched on creating added value through the optimization of gas processes and exploration. This was followed by a presentation from DCEO (Drilling & Technology) Ayad Al-Kandari, whose presentation was titled “Step Change in Kuwaitization with Fast-Track Development of Drilling Engineers.”The last two presentations were delivered by DCEO (Administration & Finance) Saad Al-Azmi, who discussed successful training practices, and DCEO (Corporate Services) Ismail Abdulla, who discussed the rebuilding of Ahmadi.The President of BP Middle East, Michael Townsend, was also present at the event. He delivered a presentation titled “An Uncertain World” that touched on some of the recent events that have been taking place in the international oil and gas industry. Think-K was then concluded with a brief speech by KPC CEO Nizar Al-Adsani, who called on all K-Companies to take serious steps toward innovation and efficiency in the face of declining oil prices.

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32nd D&T Directorate HSE QPR MeetingHeld under the patronage of DCEO Ayad Al-Kandari

CEO Visits Ahmadi HospitalOn the occasion of Kuwait’s National and Liberation Day

The 32nd D&T Directorate HSE Quarterly Performance Review Meeting for Q3 was conducted recently under the patronage of DCEO (D&T) Ayad Al-Kandari. In his opening remarks, Al-Kandari said that he appreciated the support and effort extended to the D&T Directorate in regard to the recent blowout and well control activities at well RA-552 in North Kuwait.

Fahad Al-Dhamen, Team Leader HSE (D&T), also welcomed participants to the meeting. During the event, the HSE (D&T) Team presented information on matters such as HSE performance, an analysis of D&T SOC and SVV reports, key HSE programs conducted during the quarter, an update on major incidents and recommendations/implementation, ISO 14001 and OHSAS 18001 implementation, HSE concerns and actionable items from previous meetings.

Managers, Team Leaders and HSE Coordinators from all Groups of the D&T Directorate attended the meeting, where they discussed various HSE issues and shared their ideas for improving the D&T Directorate’s HSE performance and resolving the issues.

As part of the DCEO D&T Quarterly HSE Recognition Program, the winners of the various recognition programs (Best Near Miss Reporters, Best Rig of the Month, Significant HSE Contributor, HSE Quiz) were appreciated by Al-Kandari. Certificates and prizes for the winners were also distributed by the DCEO.

In his closing remarks, Al-Kandari thanked all attendees and advised all in attendance to take the necessary precautions to carry out safe operations.

In what has become a Company tradition on the occasion of Kuwait’s National and Liberation Day holidays, KOC’s senior officials, headed by CEO Jamal Jaafar and DCEO (Administration & Finance) Saad Al-Azmi, visited Ahmadi Hospital recently to check on the status of patients receiving treatment there. The visiting delegation was accompanied by Ahmadi Hospital Director Dr. Emad Al-Awad, who led the officials on a tour of the hospital’s departments and wards.

During the visit, Jaafar confirmed that the Company spared no effort in providing the best health care for patients in the hospital. The CEO’s visit reflects the Company’s interest in sharing the joy of national celebrations with patients who unfortunately have to be away from their families because of their illnesses. In addition, gifts were presented to the patients during the visit.

The KOC CEO also praised the humanitarian efforts that are made daily by Ahmadi Hospital’s well-trained medical and nursing staff. Their expertise, he said, allows patients to feel at ease and make speedy recoveries.

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KOC recently launched a new bicycle track in Ahmadi that has been designed to connect all of the city’s streets. In addition, the new bicycle track will make it easier for cyclists to access all of Ahmadi’s public service facilities and buildings.

The inauguration ceremony for the new bicycle track was attended by KOC CEO Jamal Jaafar and a number of DCEOs. A group of Team Leaders and other Company employees were also present. The Kuwait Cycling Club, in addition to a number of Ahmadi residents, also took part in the inauguration ceremony.

In a speech he made on the sidelines of the ceremony, the CEO confirmed that the bicycle track project reflected the Company’s interest in promoting an active lifestyle for KOC employees and Ahmadi residents. It was also a reflection of KOC’s awareness of the importance of promoting public health. “KOC has placed great interest in and works hard to create the appropriate environments for Company employees and Ahmadi residents to lead lives that allow them to work hard and enjoy recreational activities that promote their health and wellbeing,” the CEO said.

Meanwhile, Esmaeil Ahmad, Ahmadi Projects Group Manager, maintained that the track is part of the ongoing reconstruction efforts to rebuild Ahmadi Township. The track is part of the creative vision that seeks to develop Ahmadi’s infrastructure and vital facilities. The Ahmadi Projects Group Manager went on to say that Ahmadi’s unique character, in addition to the distinct nature of its environmental and architectural aspects, will do much in the way of turning Ahmadi into a model city. This, he said, will become especially apparent as Ahmadi prepares to initiate the next phase of its reconstruction efforts.

A meeting was conducted recently to discuss combining

the strategic objectives of the R&D and R&T Groups. During

the meeting, R&D Group Manager Mohammad Al-Qenaei

and R&T Group Manager Jamal Al-Hamoud discussed

methods of collaboration and alignment between the two

Groups. The meeting aimed to create a detailed roadmap

for the two groups as they seek to align and integrate their

areas of work.

During the meeting, the Managers discussed a number of

methods that may be implemented by the Groups at a later

stage. The roadmap is being prepared in a cooperative

manner in order to facilitate the integration of the two

Groups’ strategic objectives.

KOC Unveils New Bicycle TrackInauguration ceremony attended by CEO and other officials

R&D and R&T Hold Meeting to Integrate Strategic ObjectivesGroup Managers discussed methods of collaboration

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The Exploration Operations Team recently hosted a training session titled “Handling of Explosives and Blasting in Seismic Exploration” for KOC staff, contractors and employees from the Ministry of Interior involved in the Seismic Shooting Operations.

The training was the first of its kin d conducted at KOC in coordination with the Ministry of Interior. The training took place over the course of three days and covered topics that touched on safe practices that are to be followed in loading, transporting, handling and detonating explosives during seismic activities.

During the event, Mashari Al-Awadi (TL Exploration Operations) noted that Explosive Operations will commence soon inside Burgan Field as part of the 3D Seismic Acquisition Project and that this training is a mandatory requirement for all staff working with Explosive Operations.

Meanwhile, Bader Al-Ajmi, Snr. Geophysicist and Seismic Operations Supervisor, reiterated the requirements for adherence to safe work practices during Seismic Explosive Operations.

The Well Surveillance Group recently conducted its regular course of HSE training. The training, which included employees from the various departments of the Group, took place over six consecutive days.

The presentations, held under the guidance of Manager Saeed Al-Shaheen, were managed by HSE advisor Dr. Ibrahim Al-Mahdi. Dr. Al-Mahdi played the important role of providing all employees with the necessary knowledge required in this field.

The first day of the event included an awareness session on defensive driving and the importance of wearing the safety belt. A simulation on safe driving and how to prevent accidents was conducted. The second day included information on the HSE Management System in KOC and the importance of the environment for all.

The third day focused on the various dangers that may be encountered on a normal working day, such as unexpected electrical problems in the office and the fires that may result. Other causes of fire were also discussed, and a presentation on the importance of first aid was also made.

The fourth day included exercises that were customized for workers in the field that dealt with the different materials they encounter, such as hydrogen sulfide gas, radiation and explosives. A video presentation was screened that contained an awareness message form the Manager and Team Leaders to KOC employees.

The fifth day included an explanation of how to avoid various injuries, while the sixth and final day consisted of practical training on the use of first aid and how to avoid exposure to hydrogen sulfide gas and other dangerous materials.

Exploration Operations Team Hosts Training SessionHandling of Explosives and Blasting in Seismic Exploration

Well Surveillance Group Conducts HSE TrainingTraining held under the guidance of Manager Saeed Al-Shaheen

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Compassionate Leaves & Bail Bonds for March 2016Mobile No.9901293299011420

The Capital Budget Control Team recently conducted a full day awareness event under the guidance of Team Leader Ali Al-Mutairi. During the event, discussions on the Company’s Capital Budgeting & Planning Business Processes were held. The Capital Budget Control Team, along with the Operational Planning Team, presented the major CAPEX exercises to different Controlling Team members that were invited from a range of the Company’s Capital Projects across KOC Directorates.

In line with one of the Company’s strategic objectives (striving for excellence in performance), the Capital Administration, Budgeting, and Planning activities were presented and then followed with open discussions facilitated through the Directorate’s specific outlet. The Q&A sessions allowed participants to express their concerns and debate best practice ideas to overcome obstacles that might reduce or hinder the productivity of the CAPEX processes.

This event proved to be highly beneficial to the attendees and provided an excellent opportunity to exchange knowledge and explore areas for improvement.

CAPEX Budgeting & Planning Awareness Event“To strive for excellence in performance”

The Process Safety Management Group recently held its weekly UD Engineer Presentation Meeting under the supervision of PSM Group Manager Abdullah Al-Awadhi, Inspection & Corrosion (S&EK) Team Leader Abdul Razzaq Al-Shammari, Inspection & Corrosion Team Leader (N&WK) Saleh Al-Sulaiman, and senior engineers, specialists, and UDs from the Inspection & Corrosion Teams.

Training Coordinator Sarah Raji opened the meeting and delivered a brief presentation on the DIMS system. She then introduced the UD Engineers who would be presenting, Hussain Butaleb and Anwar Reda. The presentation covered the UD’s recent duty to China and the following topic: “Three Layer Polyethylene External Pipeline Coating.”

The PSM Manager commended the young engineers who took the initiative to present their findings to their peers. He also added that it was beneficial in more ways than one, because not only was information shared, there was another type of training conducted: presentation skills. He maintained that the importance of being able to give proper, well-structured presentations does not lay only in the content, but also in its delivery. “The PSM Group has provided an open forum for its trainees to hone all the necessary technical and soft skills, and this shows great involvement and interest in its trainee development,” he said.

Process Safety Management Group Holds MeetingVarious topics discussed, presentations delivered

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To comply with the KOC 2030 Strategy, and in order

to enable the optimum use of modern technology,

the Financial Payments Team recently developed and

enhanced the immediate petty cash system through Petty

Cash Application Bills that fall under Executive Regulation

No. (03.07.15).

With the cooperation of the Corporate Information

Technology Group, the Team held a training session to

inform all individuals from the relevant KOC departments.

Team Leader Financial Payments Khaled Al-Ajmi oversaw

the new system and the training sessions together with

Major Projects Senior Accountant Meshal Al-Jameel.

Members from the Team were also present.

Financial Payments Team Develops Petty Cash SystemIn cooperation with the Corporate Information Technology Group

The HSE (Gas) Team, in coordination with the HSE (S&EK) Team, recently organized a workshop consisting of two sessions titled: “Enhancing the Quality of Environmental Impact Assessment (EIA) Reporting.” The workshop included various subjects presented by environmental engineers. The presentation included a brief description of KOC.EV.003 – the Environment Impact Assessment (EIA) procedure that covers the relevant updates in KEPA Environment Protection Law No. 42/2014 amended by law No. 99/2015 and KEPA Decision No. 2/2015.

During the workshop, best practices in EIA Reporting from Soil Remediation and obstacles faced by the consultants during the preparation of the EIA Study Report were shared. Case studies about EIA Reports and their effects on the project were also presented during the workshop. The sessions concluded with an open discussion on the gaps identified in the EIA Reports with respect to the KOC HSEMS procedure.

The workshops targeted all KOC Environment and Project Engineers. They also emphasized the importance of EIA reporting and raised awareness on EIA Reporting requirements among employees who are involved in the EIA process, from both the HSE point of view and project implementation. The workshop was a successful event that attracted more than 70 participants for both sessions.

Enhancing the Quality of Environmental Impact AssessmentWorkshop by HSE (Gas) Team in coordination with HSE (S&EK) Team

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As part of KOC’s Corporate Social Responsibility (CSR) initiatives, the Financial Systems & Control Group recently visited the Gulf University for Science and Technology (GUST) to interact with and provide students majoring in accounting with insights about the work of the Finance Departments of an upstream oil company. Topics discussed included KOC Financial Services structures, the basics of accounting in an upstream company, the systems KOC uses and how they are integrated with other areas of work.

Faisal Al-Loughani, Team Leader Financial Reporting, welcomed everyone in attendance and introduced the team members. He provided a brief history of KOC and the Company’s organization chart. He also explained the new asset tracking system that is used to control movable assets.

Rashed Al-Rashed, Accountant II, then explained the major functions of the different Teams and sections that are under the Financial Systems and Control Group and the Financial Accounts and Service Group.

Meanwhile, Ramesh Menon, Specialist, explained key integrations between HR, FS, and MMMS and the current chart of accounts structure and methodology. He also discussed the effect of oil price declines and its impact on KOC financials. He then explained the compliance of International Financial Reporting Standards (IFRS) in the preparation of the audited financial statements of KOC.

To conclude, the GUST Accounting Club President Yousef Al-Haroun thanked KOC for its FSCG Corporate Social Responsibility initiatives and expressed his hope that this would pave the way for more future cooperation on accounting issues.

As part of the National and Liberation Day celebrations, KOC recently organized a basketball tournament where teams from both inside and outside the Company participated. The tournament, which took place in Ahmadi, was an event that was enjoyed by participants and fans alike.

The winners of the championship, Team 180, displayed excellent skill as they competed against USA Group, who placed second.

The tournament was made possible by Organizing Committee President Mohammad Khalifa, Committee Secretary Frederick Makasakit, and Dawoud Bilal. Dalal Khalifa and Abdullah Al-Kandari from the Community Services Team supervised the event.

Financial Systems & Control Group Visits GUSTTo provide insight for students majoring in accounting

KOC Organizes Basketball TournamentEvent took place in Ahmadi

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KOC CEO Jamal Jaffer recently attended an event that was organized to launch the display of decorations and lights that were placed around Ahmadi on the occasion of Kuwait’s National and Liberation Day holidays.

Jaffer was accompanied by DCEO (Exploration & Gas) Menahi Al-Enezi and a number of other Company officials. During the event, the KOC CEO flipped the switch that turned on the lights and decorations that were set up in the park adjacent to the KOC Tent. This was done after a screening of a documentary outside the tent that touched on the history of Kuwait, its development, and the discovery of oil.

After flipping the switch that brought the lights and decorations to life, those in attendance noted the remarkable display that was made possible by the Utilities Team of the Ahmadi Services Group.

During the event, Team Leader Utilities Abdulaziz Al-Obaidan accompanied the CEO on a tour of the various parts of the display area and delivered a presentation of the work conducted by his Team, where he explained how they were able to create such a beautiful landscape.

KOC CEO Attends Launch of Ahmadi Lights and DecorationsDisplays made possible by the Ahmadi Services Group