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Kuwait Oil Company Gas Flaring

Global Gas Flaring Reduction Partnership’s (GGFR)

Steering Committee

Washington DC, USA

November 2011

KOC Gas & Condensate Handling

2 December 2011 2

HP Sour Rich Gas

HP Lean (Fuel)

Gas (Mainly C1)

BS-140

BS-150

Ric

h F

uel G

as

SE

K / N

K

KOC Fuel Gas

Requirement

LP Lean

(Fuel) Gas

WK Gas

Sweetening

Facility

NK GCs

SEK

GCs

WK GCs

BS-131

HP Gas

LP Gas

Jurassic

EPF-50

LP

G –

MA

A

LPG Rich

By-Pass

AG

RP

s –

MA

A &

SH

U

HP Export Rich Gas

Sour Condensate

Condensate

MEW,

KNPC,

EQUATE

PIC,

SHU,

MISC

C5+ (KNG)

LPG

Ethane EQUATE

Slug-

Catcher Pig-Trap

Pig-Trap

Slug-

Catcher

HP Gas

HP Gas

LP Gas Burn-Off Pit

Coanda

Flare

LP Fuel

Relief Stacks

BS-170 Wafra

JO Gas

HP Fuel

Relief Stacks

Kuwait National Petroleum Corporation Kuwait Oil Company

Pentane

EXPORT

Imported LNG

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Future Plans & Projects

3

Current exports to KNPC are about 1.25 – 1.40 BSCFD Rich Gas &

about 50 M BLPD condensate. The total gas production after

development of all phases of Jurassic, KGOC and ‘Others’ is aimed at

about 4.0 BSCFD by 2030.

KOC has a corporate mission to achieve gas flaring of < 1% of its

production by end of 2012-13. Currently it is ~ 1.15%.

KOC is building new booster stations and new rich gas & condensate

export pipelines in all assets to increase reliability / availability of surface

facilities.

New large diameter fuel pipelines are being built to feed power stations

with alternate / back-up fuels besides gas, supply of which is limited.

New motor-driven Tank Vapor Compressors (TVCs) are replacing old

machines and efficient air-assisted flares are replacing obsolete flares

thereby maximizing gas utilization.

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KOC’s Flaring Vision

Where we were Where we are

17.18% 1.14%

2005-06 2011-12 Q2

Where we aim

< 1.0%

2012-13

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KOC Gas Flaring Over The Years

5

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17.18%

9.94%

7.72%

3.98%

2.60%

1.75% 1.14%

0

5

10

15

20

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Fla

ring,

as

%age o

f G

as

Pro

ducti

on

KOC Flaring Over The Past Few Years: As % of Gas Produced

% : Target / Plans

% : Actual Performance

2.30%

4.80%

YTD Sep „11

3.40%

1.80% 1.00%

How Much Did It Cost?

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

614.9

347.6

273.8

152.7

100.3

71.2

24.4

Millions ($)

Millions ($)

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What Does It Mean?

0

50

100

150

200

250

300

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

267

151

119

66 43

31 11

# of Wimbeldon Stadium fields with 1 ft thick Carbon

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What We Have Done?

40,392 houses have been powered over 5 years since the start of the flaring reduction program

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KOC 2011-12 Flaring Summary (YTD Sep‘11)

9

Flaring Targets For KOC 2011-12

S&EK NK WK EPF-50 KOC

Stretch 0.55% 1.70% 4.00% 1.15% 1.70%

Target 0.60% 1.80% 4.20% 1.20% 1.80%

Threshold 0.65% 1.90% 4.40% 1.25% 1.90%

Notes:

1. Asset-wise Flaring Targets as finalized with assets.

2. EPF-50 figures include acid gas & hydrocarbon gas Flared

3. WK figures include gas flared in WK on account of non-availability of KNPC AGRP & hydrocarbon gas flared at GSF

4. For monetization of flared gas / savings, the budget 2011-12 (May 2010) values of “Basis for Economic Evaluation” have been used.

5. June Gas price of 4.5$/MMBTU is considered.

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0.63 0.77

2.50

6.27

1.14

0.848 0.725

0.540

0.919

3.031 11.73

4.44

21.07

0

5

10

15

20

25

30

35

40

0

2

4

6

8

10

S&EK NK WK EPF-50 KOC

Fla

ring a

s % o

f Pro

ducti

on

Actu

al Falr

e Q

uanti

ty,

BSCF

Revenue S

avin

gs,

Million $

KOC Flaring 2011-12 : YTD September '11

Flaring as % of Production

Actual Flare Gas Quantity, BSCF

Revenue Savings

KOC 2011-12 Flaring Summary (YTD September ‘11)

10

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Notes:

1. Non-KOC Operated Facilities include KNPC Gas Plants (LPG & AGRPs), Jurassic EPF-50 & WK Gas Sweetening Facility (GSF).

2. EPF-50 figures include acid gas & hydrocarbon gas Flared

3. WK figures include gas flared in WK on account of non-availability of KNPC AGRP & hydrocarbon gas flared at GSF

YTD Sep ’11 KOC Flaring = 3.031 BSCF

SEK: 848 MMSCF

28%

NK: 725 MMSCF

24%

WK: 540 MMSCF

18%

EPF-50: 919 MMSCF

30%

Asset-Wise Break-Up from Overall KOC Flaring

How Did We Do It? Gas Flaring Related Capital Projects

“Projects Completed”

11

Project Title Cost

Million ($)

Upgrading of LP Gas Network in SEK 23.0

Modification in Tank Vapor System in EK GCs 40.1

New 30” HP Export Gas Line from BS-140 to GCMB 8.8

Facilities Modernization Project in SK (including 3 New Condensate Recovery Units in GC-3, 4 &6)

886.1

Facilities Modernization Project in EK (including 8 New Condensate Recovery Units in GC-1, 2 , 9, 10, 11, 19, 20 & 22)

1417.5

GC-28 Capacity Expansion (Including 3rd Compressor Train) 97.9

Gas Sweetening Facility in WK (EPF) 22.6

New Booster Station BS - 160 at SEK facilities 570.0

40"Gas Line from BS-131 (NK) to LPG Plant (MAA) 509.3

Installation of New Air-Assisted Flare Stacks at GC-17 /27 / 28 & BS-170 & Liquid Separator Area Near GC-11

29.9

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Gas Flaring Related Capital Projects

12

Project Title Cost

Million

($)

New Booster Station BS - 171 at West Kuwait Area.

906.3

New Booster Station BS - 132 and enhancement of BS 131 (NK)

721.2

3 New Tank Vapor Compressors in GC - 7, 8 & 21 121.7

GCP for GC-16 & Gas Re-Injection Project 75.1

MAA - Sabiya/Doha Fuel Pipelines (EF/1713) 1404.8

MAA - Azzour/Shuaiba Fuel Pipelines (EF/1760) 833.3

Project Title Improvements to Existing Booster Stations BS-140 & BS-150 including new smokeless flares

Replacement of 40” HP Export Gas Pipeline from M/F-GCMB to LPG Plant (MAA-02).

Replacement of 16” Condensate line by a new 20" pipeline from GCMB Manifold to MAA-02

New 24" Export Gas pipeline & 14" condensate pipeline from BS-171 to AGRP-MAA

14 New Multi-point Smokeless HP flares at SEK GCs

“Projects Awarded” “Projects Under KOC GATE

System & Contract Action”

With Total Cost of 7.9 Billions $

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