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Main English 1 Copy Issue No.31 January,March 2005 1980- 2005 KPC Commemorates its Silver Jubilee In This Issue Special file on the history of oil in Kuwait and the circumstances leading to the creation of KPC and development of its various oil related activities. Sheikh Ahmad Al Fahad, Minister of Energy, underlines the importance of the oil sector and describes it as the back- bone of Kuwait’s economy. He also highlights future plans to enhance production and refining capacity. Hani Abdulaziz Hussein, KPC’s A series of interviews with for- The crucial phase KPC endured CEO, sheds light on key chal- mer oil leaders to ascertain their during the Iraqi occupation and lenges and promising upstream views on the performance of the the triumphant reconstruction and downstream opportunities. Corporation and their aspirations process. for the future of the oil industry. KPC’s Mission Editor In Chief Kuwait Petroleum Corporation (KPC) is a Corporation of economic character, Talal Al Khalid Al Sabah run on a commercial basis and fully owned by the State. It is one of the world’s Managing Director major oil & gas companies and its activities are focused on petroleum explo- Petroleum Services ration and production, refining, marketing, petrochemicals, and transport. KPC’s mission is to manage and operate these integrated activities worldwide in the most efficient and professional manner. In addition to growing share- holder value whilst ensuring the optimum exploitation of Kuwait hydrocarbon resources.KPC has an important role in contributing to the support and devel- opment of the Kuwaiti economy, developing national manpower, maintaining superior commercial and technical expertise and proactively managing the environmental, health and safety aspects related to KPC’s businesses. 2 KPC WORLD,JANUARY,MARCH 2005 Special report on KPC’s overseas An account of KPC’s determina- A summary of KPC’s strategic KPC’s humanitarian footprints expansion and forays into new tion to become a regional leader directions in all areas of the oil locally and internationally. markets. in petrochemicals. industry. KPC World Team Artwork & Design The KPC World Team expresses its thanks and apprecia- tion to all who contributed editorial and information mate- Mohammad Al Zamanan Alireza Jelvehnejad rial and photographs to produce this issue of KPC World. Merwi Al Khaldi Al Assriya Printing Press Kamal Al Khars Sheikha Al Tourah Copyediting Rawabi Al Bannai P.O. Box: 26565-Safat-13126 Kuwait Dharey Al Jarallah Anthony Borrows Tel: (965) 2400969 Alia Al Jasmi Trident EWC Fax: (965) 2407872 English Writing Consultants L.L.P. Website: www.kpc.com.kw E-mail: [email protected] KPC WORLD,JANUARY,MARCH 2005 3 Towards more Progress, Success Just like the heart that pumps blood into the well as scientific and technical capacities, and it veins, the land of Kuwait breathes life into the is worth mentioning the enormous develop- veins of our country, and bestows upon it illumi- ments in the fields of oil exploration, production nation, prosperity and success. Day by day, and refining, and in security, safety and envi- Kuwait has become an oasis priding itself on the ronment. glory, security and peace it has achieved. We must also mention some of the major steps The story of the oil wealth in Kuwait is much which the Corporation aspires to achieve in the more than just a simple story that we can tell coming fifteen years; the most important of briefly; it is rather, a saga of struggle, heroism which is to increase its productive capabilities and devotion displayed by the people of this up to four million barrels per day and to increase country. Indeed, the oil wealth which God its refining capabilities by building a new fourth Almighty endowed us with has always depend- refinery and renovating its existing refineries. ed upon the laudable efforts of those who have Furthermore, the oil transport sector is being worked in the oil sector for more than fifty years. developed through the building of seven new oil and gas tankers. And it is worth mentioning the It is true that crucial days in the history of huge programs initiated by the Corporation to Kuwaiti oil are numerous and unforgettable, but develop the means of security, safety and pro- the most important of all occurred in January tection of the environment. We would also like 1980, when Kuwait Petroleum Corporation was to highlight the project of the Northern oil fields created and was charged with the management which will add a new dimension to Kuwait’s of the entire oil sector encompassing all the oil productive capabilities. companies and corporations in the country. On the occasion of the Corporation’s silver Today, as we celebrate the silver jubilee of the jubilee, we would like to express our best wish- Corporation, we cannot but express our deep es to all KPC employees and our deep gratitude gratitude and appreciation to all those men and to all our colleagues who have generously con- women who have contributed with their efforts tributed to the creation of this giant Corporation. and devotion to the great success of the We hope that the Corporation achieves great Corporation, enabling it to compete with the progress, success and prosperity, and that its leading petroleum companies in the world. employees and our country may enjoy lasting good fortune, security and prosperity. On this special occasion, we feel proud to recall some of the main achievements of the Corporation. Indeed, the Corporation has been able to ensure training and development for Talal Al Khaled Al Sabah thousands of young Kuwaitis in the manage- Managing Director Petroleum Services ment of this national facility which is, without Editor-in-chief exaggeration, the most important economic sector in Kuwait. The Corporation also employs the most recent and advanced technology as 4 KPC WORLD,JANUARY,MARCH 2005 In this special file, current and former oil leaders express their aspirations and expecta- tions for the future of the Corporation and the memo- rable events and develop- ments during their tenure. KPC WORLD,JANUARY,MARCH 2005 5 of a subsequent transformational industry. Minister of Oil How do you forecast the Corporation’s future Sheikh Ahmad Al-Fahad Al-Sabah in light of the increasing world demand for oil? “Oil Sector is The increasing world demand for crude oil cre- ates several challenges for the Corporation; the major one facing us today being to increase pro- the Backbone duction to meet this demand. This will be achieved by developing exploration, develop- ment and production work in Kuwait so as to of Kuwait’s Economy” increase reserves and raise extraction rates, by finalizing capital projects such as the crude In his confident calm tone, Sheikh Ahmad Al Fahad Al Sabah, Minister of Energy & Chairman of exportation facilities construction project and by KPC’s Board of Directors, broadly surveyed the strategic directions of the oil sector. He optimisti- increasing exploration , development and pro- cally enthused that the Corporation is going through one of its best phases, which promises over- duction of non-accompanying gas, so that this all prosperity and development. He believes that the Corporation forms the backbone of Kuwait’s gas can be substituted for oil in energy produc- economy, thus it has an immense responsibility to enhance its performance in all realms so as to tion. become an effective contributor to Kuwait’s prosperity. What future plans and projects would you In your opinion, what role does the the following means: like to carry out? Corporation play in enhancing the national 1. Privatizing some of the Corporation’s activi- The Corporation and its subsidiaries have economy? ties: Recently, the Corporation conducted sever- defined the strategic goals, which the Kuwaiti oil The Corporation plays a crucial role in support- al studies on the privatization of its activities and sector aims to realize in the future. The capital ing and stimulating the national economy. One “the possibility of involving the private sector costs for the realization of such goals have been of the most important ways it does this is to with the Corporation’s subsidiary companies in estimated at K.D.16.2 billion over the coming endeavour to provide good investment opportu- whole or in part”. Currently, we are waiting for twenty years. nities for the private sector in the oil industry by the required approvals of the outcomes and rec- ommendations of these studies, so that we may Reaching a production level of 3 million barrels proceed with their implementation. Meanwhile, of crude oil per day by the year 2005, and 4 mil- the Corporation is taking the required executive lion barrels per day (bpd) by 2020 is one of the steps to privatize the oil blending and local mar- major objectives. To achieve this, several proj- keting activities. The oil blending activity has ects will be implemented, some of which have been sold to a private sector company while the already been identified and will be implemented First Local Fuel Marketing Company has been during the coming five years as follows: established and has offered 76% of its shares for public subscription. In addition, steps have 1. Construction of new crude exportation facili- been taken to transfer the whole of the calcin- ties in the Northern and Southern tank farms er coke project to the private sector. The project and at Mina Al-Ahmadi and tanker fuelling facil- tender has been awarded to the Al Mal Group for ities. the production of calciner coke. 2. Increasing the production capacity of 2. Promoting the participation of the private sec- Gathering Centre No. 28, and installing a gas tor in the Corporation’s operations: The private pressure unit and treatment unit for medium sector now participates in the Kuwaiti humidity crude oil in the West of Kuwait.
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