1 Progress & Prosperity

2 Contents Pages

HISTORICAL INSIGHT 4

EXPLORATION & DRILLING OPERATIONS 8

STRATEGY (2020) 12

DRILLING OPERATIONS 13

FIELDS DEVELOPMENT 15

PRODUCTION (EXPORT & MARINE) OPERATIONS 23

HEALTH, SAFETY & ENVIRONMENT 29

GAS MANAGEMENT GROUP 33

TRAINING & DEVELOPMENT 35

MEDICAL SERVICES 37

Information Team Public Relations & Information Group 2008

3 Progress & Prosperity

HISTORICAL INSIGHT

Kuwait Oil Company (KOC) was established in 1934 ready for new era of prosperity. under joint ownership agreement between the An- In June 30, 1946 His Highness the late Sheikh Ahmad glo-Iranian Oil Company, now known as British Pe- Al-Jaber, then Amir of Kuwait, inaugurated the first troleum and Gulf Oil Corporation known today as shipment of oil when he turned the silver wheeled Chevron. The company was given free concession valve to start loading of the first flow of oil onto the rights to explore and produce oil in state of Kuwait. 12,000 tonne “British Fuzilier” tanker. Exploration activities began soon after; surface geol- Following the early success, more appraisals and ogy studies and gravity surveys were conducted. development well were drilled in Burgan field to in- In 1936 KOC drilled the first exploratory well in crease production. In 1951, explorations operations north Bahra area but the results were not encourag- were extended into Magwa and Ahmadi ridge area, ing enough to continue. oil was discovered and production began from the In 1938 oil was discovered in Burgan well–1. During Magwa field in 1953. the following years, eight exploration and appraisal Exploration activities continued in the following years wells were drilled which established “Burgan” as leading to the discovery of Raudhatain field in north one of the largest producing oil fields in the world. Kuwait and Minagish field in west Kuwait in 1955. However, drilling and production operations were In 1974 a partnership was ratified by Kuwait Nation- suspended due to the eruption of World War II. Af- al Assembly giving 60% control of the operations ter the end of the war in 1945, operations were re- and facilities of KOC to the State of Kuwait while sumed and the eight drilled wells produced at a rate remaining 40% were divided equally between BP of 30,000 bpd. Surface facilities, pipe lines, exporting facilities… etc had been constructed and Kuwait was and Gulf.

4 In 1975 the Kuwait government assumed full owner- 6, 1991, 18 months ahead of international forecast. ship of the company. This was the result of more than 700 oil wells set In 1980, it was about time to organize the oil sec- ablaze by the Iraqis. The first post-liberation ship- tor. Kuwait petroleum Corporation (KPC) was estab- ment of 1.64 million barrels of crude oil left Kuwait lished by an Amiri Decree. in July 1991, by September of the same year new KOC was given the responsibility of on-shore off- wells were under construction and crude oil produc- shore exploration, drilling, development, and pro- tion once again exceeded the two million barrels per duction of hydrocarbon in the state of Kuwait. day level by February 1993. In 1981 KOC conducted an on-shore off-shore 2D The strategic goals of KOC were to increase oil and seismic survey for development and exploration gas reserves and production. Plans were established objectives. This was followed by successful drilling following the liberation. In 1995 extensive explo- program to increase production from the discovered ration and development programs were designed. fields. In 1983 KOC commenced its first off-shore Thousands of 2D, 3D and 4D Seismic data were ac- exploration drilling. Four prospects were drilled us- quired over the whole land area, Bubiyan Island and ing Al-Baz rig with no economical discoveries but oil transition zone. In December 30 of the same year shows were reported. the company signed a contract with Chinese Petro- Between August 1990 and February 1991, nearly leum Corporation to build gathering centers 27 and 80% of KOC producing wells, installations and facili- 28 in west Kuwait. In January 9, 1996 two rotary ties were destroyed in the wake of the Iraqi invasion. platforms were constructed. Their complete restoration in less than four years was In March 1997, the Ahmadi Park was renovated, achieved as result of the remarkable level of coop- decorated and reopened under the patronage of eration between KPC subsidiaries, and in tribute to then Ahmaid governor Sheikh Ali Jaber Al-Ahmad Kuwaiti National pride. Al-Sabah. In March 1998, Ahmadi sports day was re- H.H the Amir Sheikh Jaber Al-Ahmed Al-Jaber Al- celebrated after the company has rebuilt the sport- Sabah personally capped Burgan 118 on November ing, entertainment and social facilities.

5 Progress & Prosperity

In April 1998, the chairman’s HSE award was imple- eries. mented. SA-153 (1999-Marrat, 2002-Najmah/Sargelu) Mid- The Company’s various activities continued at all lev- dle Marrat interval was tested and produced 15.7 els. In March 2000, the 14th Ahmadi Sports Day was MMSCFD gas, with condensate @ 4500 BCPD. held. Najmah/Sargelu interval was tested and produced In July 2000 gathering center 25 north of Kuwait was 14 MMSCFD gas with condensate @ 4510 BCPD. commissioned. In January and April 2001 gathering RA-206 (2002-Marrat) exploratory well Middle centers (27), (28) in west Kuwait fields were respec- Marrat interval was tested and the well produced tively inaugurated and commissioned. light crude oil (46o API) @3869 bopd of oil with gas In 2003, KOC jointly with major seismic company potential of 8.55mmscf/day. tested the use of digital single sensors to acquire high NWRA-01 (2002-Marrat) Middle Marrat interval resolution 3D Seismic data in Minagish field. was tested @ 5189 bopd of (43o API) oil and associ- In 2003/2005 KOC acquired 1650 sq. km of 3D ated gas 11.5 MMSCFD. Seismic cover, Ratqa, Mutriba, Ladira, Dhabi and KA-01 (2002-Marrat) discovery of 40 API oil was Raudhatain areas. made in Middle Marrat produced 323 bopd of oil KOC has launched its ambitious 2020 strategy which with GOR of 1070scf/bbl. calls for increasing oil and gas reserves and increase SA-072 (2003-Marrat) The well has been completed production. in Middle Marrat and produced 8.2 MMSCFD gas Exploration activities have been intensified in order with condensate @ 4532 BCPD. to achieve the strategy. Exploration studies and drill- KA-01 (2004-Najmah/Sargelu) Well KA-01ST(Side ing have been focused on the hydrocarbon poten- Track) has produced from Najmah Sargelu reservoir tials of the deep Jurassic and Permian reservoirs. through 32/64” @ 1876 BOPD, API: 49°, GOR: These intense exploration drilling activities have re- 1795 SCF/bbl sulted on several significant light oil and gas discov- Bahrah-28 (2004 Middle Marrat) First commercial

6 quantities of light oil in Bahrah Field in the very BCPD, first Jurassic well. The post-acidization test results Upper Marrat Test through 32/64” choke @ 4860 BOPD, API: 44°, Gas Gas rate: 10.206 MMSCFD, Condensate rate: Rate: 12.670 MMSCFD 1879 BCPD RA-230 (2005-Middle Marrat) Oil: 4963 BOPD, Najamh/Sargelu Test Gas: 14.0 MMSCFD, FWHP: 5933 PSI, Gas rate: 27.132 MMSCFD, Condensate rate: RA-236 (2006-Middle Marrat) Oil: 5245 BOPD, 2153 BCPD Gas: 15.2 MMSCFD, NWRA-02 (Najmah/Sargelu)-2005 Has been the These discoveries (RA-230/236) have confirmed the second gas condensate discovery in North Kuwait extent of high quality oil in Raudhatain structure. from Najmah/Sargelu. Gas: 19.1 MMSCFD, Con- RH-02 (2003-Marrat,2004-Najmah/Sargelu) explor- densate rate: 3571 BCPD. atory well Middle Marrat interval was tested and Arifjan-01(Marrat)-2006 Located SE of Burgan the well flowed 46 API OIL @ 2352bopd of oil with Structure this well has produced oil @ rate 5357 GOR of 1627scf/bbl. Najmah/Sargelu interval was BOPDAPI: 42°, Gas rate: 8.336 MMSCFD tested and produced light crude (52o API) @5702 UR-01(Marrat)-2007 Located on Minagish _ Ra- bopd with GOR of 2582 Scf/bbl and associated gas hayiah Trend the UR-01 have produced oil @: @ 14.7 MMSCFD. The highest quality oil in Kuwait and proved oil 1500 679 BOPD, API: 43 feet deeper than the known Minagish field. UN-02(Marrat)-2007 has produced Gas @ rate: UN-01(SA-215)_2005 Middle Marrat Test-1 19 MMSCFD and Condensate @ rate: 2063 Gas rate: 16.8 MMSCFD, Condensate rate: 3052 BCPD BCPD These major light oil and gas discoveries have es- Middle Marrat Test-2 tablished Kuwait on the world map of gas pro- Gas rate: 14 MMSCFD, Condensate rate: 2738 BCPD ducing countries. Middle Marrat Test-3 Gas rate: 14.4 MMSCFD, Condensate rate: 2455

7 Progress & Prosperity

EXPLORATION & DRILLING OPERATIONS

Oil Origin & Formation: Oil is formed from the remains of numerous Exploration: animals and plants that lived and died in the sea Exploration process is divided into several phas- millions of years ago. Covered beneath hundred es. It begins with identifying a specific location of tons of rocks and subject to high pressures in which geologists expect availability of main and temperatures, bacterial reactions take place factors for oil reservoirs formation. At this point, in these organic materials to form oil. geologists make recommendations to conduct certain geological surveys which are divided into Locations of Oil: several types according to the type of informa- Oil exists within the porous layers of sedimen- tion needed to be collected. Such surveys are tary rocks that have been trapped for millions of concerned with studying physical properties of years by a covering of non-porous “cap” rocks. earth layers through conducting measurements Sedimentary rocks are formed from silt, sand or for physical fields on and near land surveys. The the debris of shells precipitated at the bottom importance of these surveys is that they reduce of ancient seas and it is these sedimentary rocks exploration drilling risks. The types of these sur- that oil explorers search for. veys are set out below:

8 · Magnetic Surveys: tographic or radiant, i.e. measuring the reflec- These are used in the preliminary stages of ex- tion, absorption and dispersion of electromag- ploration and can be performed on land, at sea netic wave spectra emanating from the earth’s and from the air. Magnetometers are used to surface. These methods are additionally used in measure magnetic anomalies in the subsurface engineering projects to select locations for pipe- rocks to identify possible sedimentary rock ba- lines, roads and buildings. sins and main drifts where oil might be located. · Seismic Surveys: · Gravimetric Surveys: Using the information provided by the geophys- In this method, earth gravity is measured to ical methods described above, the oil explora- identify anomalies associated with oil entrap- tions will then carry out seismic surveys over ments. These surveys can also be carried out on locations that indicate where oil is most likely land, at sea and from the air. The interpretation to be found. Seismic surveys can be performed of this survey provides information on the depth on land, at sea and provide much more detailed to basement and the subsurface structural con- information about the deposition and formation figuration. of the subsurface geology. Structural maps and · Aerial Surveys: stratigraphic interpretations can be made from Picture and images taken from aircraft or satel- 2D seismic data. Advanced three dimensional lites are used to draw maps of geological and (3D) seismic surveys provide even more accurate topographic features on the earth’s surface geological images of complex faults and oil traps that indicates where oil may be trapped in the leading to fewer dry wells being drilled. New rocks below. The images recorded can be pho- techniques make use of seismic data to measure

9 Progress & Prosperity

rock porosity and permeability within oil reser- exist in the oil field and have positive or negative voirs. The four dimensional (4D) seismic surveys impact on traps according to type of layers. have been recently introduced. This technique provides information on the fluid movements · Sedimentary Geological Studies: within producing reservoirs. Geological Studies including the study of sedi- The accuracy of the results of the seismic sur- mentary sequences in respect to the type of veys greatly enhances the success of exploration rocks and entrapment mechanism, migration drilling. before or after the trap formation and also the After obtaining these surveys and analyzing presence of the sealing rocks for hydrocarbon information, geologists team perform the next preservation. phase which includes many geological studies using the information gathered through geo- · Basin Analysis: physical surveys in addition to information made Concerned with the general studies of the sedi- available from neighboring wells, if any. Some mentary basins and their distribution, the types of these studies are mentioned hereunder: of the sedimentary rocks, the geologic structures and the potentialities of hydrocarbon occurrenc- · Constructive Geological Studies: es and the optimum location of entrapment and Concerned with the study of the Geology of the nature of the reservoir rocks and its exten- strata based on the structure and the changes sion and geographic distribution. of the appearance of traps and potential for oil · Geochemical Studies: entrapment within oil traps in addition to iden- Method involves chemical principle to character- tification of types of folds and drifts that may ize source rock, its thermal maturity for hydro-

10 carbon generation and migration in basin and to difference between one site and the other. correlate the oil-oil and oil source rock samples. All these studies are then highlighted by drilling In addition, to identify various reservoir altera- exploration wells to prove oil presence, where tions of particular oil occurrence. these wells may be drilled to intermediate or deeper depths. After the completion of explo- · Economic Feasibility Prospect Evaluation: ration drilling and oil has been discovered, the The prospective evaluation is dual with econom- prospects are then transferred to the next phase, ics of the potential traps after running the tech- which is the delineation & appraisal drilling to nical geological & geophysical studies/surveys define the boundaries of the discovered field for defining the oil entrapment. The assessment and to assess the recoverable oil reserves. of the economical value of these traps is very essential to show the elements of risk analysis, the oil in place and the recoverable reserves, the exploration and development cost estimates for economic feasibilities. After completion of all required studies and iden- tification of economic feasibility for the reservoir intended for exploration, geologists provide rec- ommendations which include explanation for all previous phases in addition to one or two loca- ﻫﺬا tions that have been identified through studies to conduct drilling indicating risk rate and the

11 Progress & Prosperity

STRATEGY (2020) In 2005 Kuwait Oil Company launched its am- tablishing history of Kuwait joining gas producing bitious strategy for 2020 which aims to increase countries forum. production to four million barrels per day, in- The strategy is based on the following seven crease oil reserves and explore gas. Appropriate axes: and deliberate plans were developed to achieve 1- Production Capacity these objectives in all fields of exploration, drilling 2- Increase Reserves and development. Exploratory drilling operations 3- Gas exploration and Production resulted in many significant explorations of light 4- Health, Safety & Environment oil and gas. This gives importance and strategic 5- Research & Technology dimension to exploration operations and achiev- 6- Regulatory Culture and the Company Image ing the Company ambitious plans as well as es- 7- Support Services

12 DRILLING OPERATIONS

Definition: cones. Drilling is a mechanical process that requires special - Support the walls of the well from caving in and pre- tools and technology. Equipment is used to penetrate vent the flow of gas and oil into the formations during the earth to recover oil and gas found in the subsurface drilling operations. layers. Casing and tubing: Once an exact spot on the surface is determined, drilling Casing and tubing are precision made steel pipes of operations begin. Drilling operations are in accordance various sizes and specification. At intervals a drill hole with a schedule indicating the depth of the well and the is lined with “casing” which is inserted from top to bot- different size casings to be placed in the well at different tom and cemented into position. depths. These casings are used to protect the well from corrosion and to prevent fluids from entering the hole. Main uses of casing are: - To control high and low pressure formations. Drilling fluid: - To prevent the hole from caving in. Drilling fluid or mud is basically a mixture of water, clay, - To replace the flow of oil “production from casing”. minerals and chemicals. Drilling mud is pumped down - To produce oil from different formations, “dual pro- the hole through the drill pipe and the drill collars and ducer”. exits at the bit through the nozzle and heads back up Drilling Techniques: the hole to the surface through the annulus, a space Wildcat drilling is considered one of the most expensive between the outside of the drill strings and the wall of and difficult drilling of all. This type is carried outto the hole. determine whether gas or oil accumulations exist in the Drilling fluids are used to: explored area. Another drilling technique is develop- - Flush cuttings from the hole. mental drilling. -Cool and lubricate the bit and ease the rotation of its Work-over operations are carried out by work-over rigs.

13 Progress & Prosperity

When the rig moves over a well, first the well has to wells are wells of lesser depths, beginning at a depth be stopped flowing or “killed”. This is usually done by of about 850-7000 feet and averaging to about 7000- forcing the oil back into the formation with pumping 12000 feet. There are much deeper wells of about suitable saline fluid to overcome the production pres- 20,000 feet. sure. When the well is killed, the Christmas tree can Recently, Kuwait Oil Company has introduced a num- then be removed and blowout prevents are fitted, af- ber of modern techniques, the most notable of which is ter which the tubing can be pulled out of the hole and horizontal drilling. This type of drilling method is car- work-over is carried out. Since the first well was drilled ried out drilling a vertical hole to the producing zone, in search for oil at mid 19th century, there have been then followed by horizontal drilling. The advantages massive developments in the tools, technology and of this type of drilling are that it increases production methods of drilling. The rotary drilling technique allows from certain formations and reduces the cost over the us drill to greater depth in shorter periods of time. This long-term. was followed y turbine drilling which used the turbines The Company is currently carrying out deep exploratory inside the well to directly rotate the drilling bit. drilling to search for new formations and to prospect Due to the awkward location of some drilling sites in for gas. residential, archeological and offshore areas, directional drilling was developed. Also in line with these develop- Drilling Workshops: ments is the horizontal drilling which became another Workshops and Stores carry out the following: method used in production. It is also one of the meth- - The storage of equipment and materials required for ods used in supported recovery. In comparison with drilling operations. other production methods, horizontal drilling increases - Coordinate between the concerned parties and the production rates, as well as the percentage of oil recov- Drilling Dept. ered from the reservoir. - Planning and scheduling of drilling rig movement. - Supply and provide materials and equipment to the Offshore Drilling: drilling sites. Offshore Drilling is very similar to onshore, the chief dif- ferent being the rigs used to drill offshore wells. Drilling Water Wells: The rigs used to drill offshore wells are installed on mo- In addition to the drilling of oil wells, there are also wa- bile platforms pinned to the seabed by means of piles ter well drilling operations. These wells are drilled in driven into the sea-floor. They can be moved easily from order to supply rigs and Gathering Centers with water. one location to another. The platform is designed to Also, wells are drilled to protect oil wells from corrosion, hold the equipment, drilling materials and small facilities. referred to as cathodic protection. Offshore drilling cost is higher than terrestrial drilling.

Drilling wells in Kuwait: The wells in Kuwait are drilled vertically. Within these

14 FIELDS DEVELOPMENT

1- RESERVOIR GEOLOGY and reservoir geometry (Geological struc- Oil is usually found in pores and vugs of res- ture) are part of it. By determination of all ervoir rocks. These rocks are in most of the these reservoir physical parameters, strategic cases of sandstone, limestone or dolomite oil reserves can be calculated and economi- and found underground at different depths. cally evaluated. Some reservoir rocks in Kuwait are at more Identification of type of structural traps is than 7 kilometers depth. considered as the main part in setting the The amount of oil or gas in the reservoir rock proper Geological Model for each reservoir, depends on many rock physical properties which in return facilitates setting the opti- out of which porosity (percentage of rock mum Field Development Plan for the reser- pores to the rock and total volume), per- voir. meability (how easy fluids can pass through Kuwait Oil Company is currently utilizing rock pores), oil saturation, net pay thickness what is considered as top of the art in hard-

15 Progress & Prosperity

ware and software technology in oil industry the seismic data have followed this survey in in order to calculate accurate reservoir rock order to improve the geological model of all physical properties and set a most accurate reservoirs. Geological Model for Kuwaiti oil fields. This goes side by side with the huge measure- Wire-Line Well Logging: ments and studies in lots of directions where International logging contractors working in the following are to be mentioned. Kuwait are providing wide range of logging service, processing and interpretation of log- Seismic Survey: ging data in oil wells on daily basis. These log The surface and well seismic survey is con- data are the only way to predict the physical sidered as the first step in exploration and properties of the reservoir rock. Each log- development of oil fields. It helps to iden- ging tool works on a specific technique to tify the structural and stratigraphic traps that measure one of the natural responses of the can be considered as promising in hydrocar- reservoir rock. These responses are inter- bon content. Therefore, Kuwait Oil Com- preted later to calculate the physical prop- pany has performed what is considered as erties of the reservoir. Logging technology vast 2D and 3D surface seismic survey on is subject to daily development and lots of all onshre and offshore land of Kuwait state. high tech tools are introduced to the mar- Extensive processing and interpretation of ket from time to time. Kuwait Oil Company

16 is considered one of the leaders in the area cialized contractors working in Kuwait for in utilizing all the new in this career for the different and detailed type of measurements benefit of Kuwait oil industry. to identify the absolute rock properties of the reservoir which facilitates development Core Sample Analysis: and production process. As wire-line logging process does not mea- This type of study is considered one of the sure direct and absolute rock properties latest technologies used to get more knowl- but depends on interpretation of nature of edge about the reservoir and detailed study rock character to predict rock physical pa- thereof through incorporating all informa- rameters, the need for direct measurements tion made available from seismic and wire of rock properties is raised to calibrate log line well log measurements and analysis of measurements. This is being achieved now core samples. They assist to build a com- by collecting either a full diameter core or prehensive structure model to interpret and side wall core plugs from the reservoir rock. evaluate the reservoir internal structure lead- These rock samples are sent to Kuwait Insti- ing to distribution and classification of infor- tute for Scientific Research or any other spe- mation within it in 3D vision.

17 Progress & Prosperity

meable formation through which hydrocar- bons will not flow. Reservoir rock could be either sandstone or carbonates. Areas contribute to enhance Reservoir De- velopment: 1- Reservoir rock type (sandstone or carbon- ate) and its properties (porosity and perme- ability). 2- Fluid properties (viscosity, associated gas, API density…). 2- Development of Oil Production Reser- 3- Reservoir geological model showing rock voirs: and properties distribution. The primary objective of reservoir engineer- 4- Production mechanism (solution gas drive, ing is to cost effectively optimize the hydro- gas cap drive, water drive). carbon recovery through efficient strategic 5- Tracking water encroachment. planning and reservoir management. 6- Reservoir simulation models. The Company therefore, has undertaken a long-term study of the condition and behav- Modern Studies in production Develop- ior of the oil reservoirs. ment: These studies have become more complicat- In general, the abovementioned studies are ed with time. The utilization of new tech- applied to different fields in Kuwait such as nologies and industry modern techniques is the Greater Burgan Field, which contains very essential in order to efficiently construct the largest Sandstone reservoir in the world. development plans and production strategy. In order to manage such reservoir, state of The studies identify the point of force and the art technology needs to be utilized in the attributes of a reservoir that control the the Company’s researches and studies. The flow of liquids and gases within the reservoir following are some of the major studies rock and into production wells. conducted in the area of reservoir develop- ment: Reservoir Definition: 1- Post-Blowout status of the reservoir. Reservoir is a subsurface layer having suffi- 2- Geological and simulation models. cient porosity and permeability to store and 3- Water encroachment studies. transmit economic quantities of hydrocarbon 4- Reserves evaluation studies. fluids. Oil, gas and water contained in this 5- Production history and predicted reser- layer are usually sealed by a relatively imper- voirs behavior.

18 6- Evaluating different production scenarios 3- Petroleum Engineering: and determining the feasibility of each sce- Petroleum Engineering is the backbone to all nario. oilfield operations. Hydrocarbon reservoirs 7- Analyzing 2D and 3D seismic studies. need wells to be completed and produced in an appropriate manner to get the best out These studies were carried out for the fol- of this Mother nature’s treasure. Petroleum lowing fields in Kuwait: engineering usually associated with comple- tion, monitoring, evaluation and optimiza- Fields Reservoirs tion of well performance. With increasing Burgan Wara complexity of reservoirs and the need to Greater Burgan Field Marrat Minagish enhance production through secondary and Marrat tertiary enhanced recovery process, artificial Umm Gudair Field Minagish lift etc., the role of petroleum engineers is East Minagish becoming ever important to ensure desired Minagish Field Marrat results. Raudhatain Upper Down Maudoud Zubair Field Burgan Burgan Some major petroleum engineering areas that are efficiently being dealt with in KOC Sabriyah Upper Down Maudoud Field Burgan Burgan

19 Progress & Prosperity

are outlined below: Well planning, design and equipment selec- tion: Each well is planned to meet specified re- quirements and completion designed to meet required rate conditions. Appropriate completion equipment is thus selected keep- ing in view HSE compliance.

Well Engineering: Tubing stress calculations are done for each well and appropriate completion equipment is selected to ensure well integrity. Injection well monitoring and use of perfor- mance improvement techniques. Injection well rates & quality are constantly monitored and evaluated. Acid stimulation and flow back techniques are being utilized to improve well performance where appro- priate.

onset of water cut in wells scale deposition is Balance injection and off-take rates for wa- a potential problem and measures are avail- ter flood management: able to deal with this through appropriate Production and injection rates for each wa- chemical squeeze treatments. terflood pattern are assessed and adjusted to Corrosion monitoring and control: maintain optimum sweep. Full scale corrosion monitoring and control processes are implemented to ensure risk Inhibition of asphaltene/scale/bacterial, free operations. etc. deposition: Asphaltene deposition is a problem in some Water production control: of our oil fields. Many studies have been Water cut is a major problem in wells pro- conducted to identify the causes of the ducing from natural/artificial water influx problem and to devise remedial measures. reservoirs. Water production is reduced with Chemical squeezes are currently being tried cement squeeze jobs where appropriate. to control/mitigate this problem. Also with

20 Artificial lift design, implementation, moni- measures are being taken to ensure well in- toring and optimization: tegrity. Many type of artificial lift methods such as electrical submersible pumps, gas lift etc. are Surveillance data acquisition and evalua- already designed and in use in many wells. tion: The performance of these lift mechanism is Surveillance strategy based on prudent res- being continuously evaluated. ervoir management practices is formulated Production well performance monitoring and implemented to acquire required sur- and evaluation: veillance data. This is key input for reservoir All producers are constantly monitored and management and highlighting well interven- performance is optimized through vertical tion opportunities. lift performance software. Well Surveillance Division: Well integrity assurance: The division consists of three sections and Each well integrity is analyzed through suit- major functions of each section are given able logs/well performance and all remedial below:

21 Progress & Prosperity

First: Contract Section: The section is responsible for administration of various contracts like: 1- Electrical submersible pumping lease con- tracts. 2- Gas lift contracts. 3- Coiled tubing contracts. 4- Well testing contracts. 5- Hydrochloric acid supply contracts. 6- Preparation of Capital and Expense bud- gets. 3- Slick line works, enlivening wells by swab- 7- Budget control and monthly status re- bing, PLTs, TDTs, pressure/temperature sur- ports. veys and tubing corrosion logs. 8- Processing of contractor’s invoices. 4- Well productivity measurement process- es. Second: Artificial Lift Operation Section: 5- PVT sampling, production-GOR testing This section is responsible for all field opera- of wells. tions related to artificial lifts modes such as 6- Rigless perforations. submersible pumping and gas lift, etc. Main 7- Well stimulation and coiled tubing jobs. functions of this section are: 8- Increase production through changing 1- Supervision of work/overs for installations production layer. of ESPs and Gas lift. 9- Reduce water production. 2- Monitoring and trouble shooting of artifi- 10- Treat production deposits cial lift installations. 11- Treat pipelines from asphaltine and lime 3- Verifying contractors service tickets for deposits. the services provided. 12- Well depth control. 4- Weekly and monthly status reports. 13- Lift and remove equipment and wires dropped into the well. Third: Rigless Operations Section: 14- Services tickets/invoices verification and This section is responsible for all wire line budget control for related jobs. activities and rigless operations as detailed 15- Preparation of monthly status reports. below: 16- Train and develop the Company petro- 1- Follow up well measurement activities. leum engineers in addition to the students of 2- Well renovation through cleaning opera- Faculty of Engineering & Petroleum in Ku- tions. wait University and PAAET.

22 PRODUCTION (EXPORT & MARINE) OPERATIONS

1- Production Operations: The gas separated from oil is also transferred Production Operations manage the process to gas booster stations and, from there, to of producing crude from all of Kuwaiti oil the gas refinery station in Ahmadi. The gas, fields. The fields are connected to Gathering referred to as “rich” gas contains hydrocar- Centers where gas is separated from oil. bons and other chemicals that are later sepa- Oil is then pumped along to the main mani- rated at the refinery. The gas is fed back to fold in Ahmadi where the oil produced is the distribution network as “lean” fuel gas combined. The oil is temporarily stored in and is then distributed to power stations and the North and South Tank Farms, and is then other industries. transferred and loaded in vessels at sea. The oil is also transferred to the refineries in Mina Production facilities include: Al-Ahmadi, Al-Shuaiba and Mina Abdulla The Wellheads: and occasionally to Kuwait’s power generat- The Wellhead is the equipment used to con- ing stations. fine and control the flow of oil from the well

23 Progress & Prosperity

to Gathering Centers. The wellhead is made separated from high and low pressure gases. up of an assembly of valves and fittings that The two types of gases are then transferred can control the amount of crude oil that is to gas booster stations. Each Gathering Cen- produced from the well. Wellheads are made ter receives oil from a number of wells, de- of a special type of metal. They are heavy termined according to the size and produc- and high-pressured to support the weight of tion capacity of the Center. Most Gathering the tubing in the well. Centers accommodate 30 wells at least. Each one of the wells is distinguished from one Pipeline and Manifolds for oil and gas: another in terms of pressure, amount of salt A manifold is an accessory system of pipes found, production method used and depth. and lines that extend along an area to carry gas, liquefied gas and crude oil to the various Gas Booster Stations: facilities and installations in the Company. A The gas which is separated in Gathering Cen- manifold is a center for a number of pipe- ters is sent to these stations, then it is com- lines that control the flow of oil and gas with pressed and transmitted to the petroleum the ability to separate them during mainte- condensation plant. Before gas is transferred nance. to the refineries it passes through a water re- moval system. Oil Gathering Centers: Under high and low pressure, liquefied pe- Gathering Centers are installations where oil is troleum gas is produced. The gas passes

24 through the water removal plant a second Manifold where oil from Gathering Centers time and is transferred to refineries in Sh- is combined: uaiba. Gathering Centers pipeline converge at the main manifold. A manifold connects be- Water Injection: tween the crude oil system and the oil tank A method of re-injecting effluent or surplus farms. water into the earth’s high-pressure reser- voirs. The internal pressure of the well can be maintained or dispose of produced water Tank Farms: into reservoirs allocated for this purpose by A group of tanks to collect and store the using this method. crude before the transfer to the loading fa- Gas Injection: cilities for export. There are a total of 56 A method of re-injecting surplus gas into the tanks, 24 in the North Tank Farm and 22 in earth’s high-pressure reservoirs. The internal the South Tank Farm with a total storage ca- pressure of the well can be maintained by us- ing this method. pacity of about 16 million barrels.

Steam Injection: 2- Export Pipelines: Similar to the method used in gas injection Oil is exported from the South Tank Farm and is used to maintain production. through pipelines. It flows through a grav-

25 Progress & Prosperity

ity manifold connected to the South Tank All operations including mixing, storing and Farm. exporting of crude oil are controlled in this These pipelines extended to the South Pier room using sophisticated and advanced and single point mooring and supply the re- equipment. Construction of this Center was fineries and power stations. completed in 1994. Oil is exported from the North Tank Farm through four pipelines which are connected · Old South Pier: It was constructed in Mina Al-Ahmadi in to gravity manifolds of North Tank Farm. 1949 and it includes 7 berths in 40-49ft. in Three of the pipelines extend to the North depth. Pier and to the SPM pump house at Mina Due to old construction of this pier, a new Al-Ahmadi. pier was constructed near thereto including 7 berths in 40-49 ft. in depth, out of which · Pump House (gravity line): 3 berths are equipped with facilities for load- Oil is exported through use of gravity flow ing crude oil tankers. This pier includes fa- lines. The pumping units located in Mina Al- cilities for exporting gas, light distilled prod- Ahmadi are used when high export flow rate ucts, heavy and light fuel oil and diesel oil is needed. including shipments limited to one item only · Crude Oil Control Room: or in shipments in which one of these prod-

26 ucts is mixed with other products. The pier ers (reaching a loading capacity of 320,000 is equipped with two berths that include spe- d.w.t.) prompted the idea of constructing a cial facilities for LPG. two-berth sea island 10 miles offshore in 95 Although ownership of this pier was trans- feet of depth. ferred to Kuwait National Petroleum Compa- A ceremony was held under the auspicious ny, however, marine operations are managed of the late Sheikh Sabah Al-Salem Al-Sabah by Kuwaiti Oil Company through Export and to announce the flow of oil through the Marine Operations Group. world’s longest marine pipeline extending to the Sea Island and loading on the VLCC · North Pier: “Universe Kuwait” with a capacity in excess The North Pier was constructed in order to of 326,000 tons (the island was destroyed accommodate the increase in oil exports. It due to invasion of vanished Iraqi regime in was commissioned in June 1959. The pier August 1990). includes four berths with 55-60ft. in depth. · Mooring Berths: · Sea Island: In 1994 to new mooring berths were built in- The increase in size and number of tank- stead of the sea island which was destroyed

27 Progress & Prosperity

by vicious invasion to Kuwait. These two viding them with new equipment such as iso- mooring berths are operated alternatively lation units, dewatering and desalting units, and their export capacity is 14500 m/tons pumps and liquefied gas intensification units. per hour. · Export operations Projects: · Single Point Mooring: - Project for upgrading export facilities includ- The SPM is a loading facility. Carriers are se- ing construction of 19 tanks with operating cured by means of a single rope tied to the capacity of 11,500 million barrels and add- front of the ship. Floating hoses are placed ing 5 gravity 48” dia. pipelines and setting along the side of the ship while it rotates up post pumps, modern gauges and two new freely around the SPM. The exporting ca- mooring berths. pacity from this facility is about 7,500 ton/h - Increase export capacity through construct- by gravity lines and 12,500 ton/h by pump- ing 8 additional tanks with operating capacity ing. of 5 million barrels. - Replace filling pipelines for south and north · New Production Operation Projects: tanks and replacing central mixing manifold. Upgrading Gathering Centers and gas boost - There are projects under study to accom- stations through mega projects whereby oil modate future increase in production as per and gas flow pipelines are changed and lifted 2020 strategy for attaining production rate of as well as increasing their oil capacity by pro- 4 million barrels per day.

28 HEALTH, SAFETY & ENVIRONMENT

Health, Safety and Environment Group moni- ago, owing to their negative impact on the tors and directs the Company’s performance Company’s environmental health reputation for applying HSE schemes and projects through locally, regionally and internationally on one the adoption of many sensitive programs, in- hand and on the credibility of performance in cluding: programs made within the Company’s strategic · Project for limiting emission of gas contami- plans at a healthy environment clear of pollut- nants associated with production as the most ants and diseases on the other hand. import source of air pollution in most oil pro- · The project of monitoring the quality of ambi- duction operation is the flaring of associated ent air in oil operations area and identifying all gas and its effect on the surrounding residential sources causing air pollution resulting in emis- areas according to weather conditions at the sion of air contaminants, then, finding the best time of emission and spread. Reducing these solutions to put a limit to this problem which pollutants is considered as one of the most is harmful to the health of employees, society important environmental achievements in the and environment. Company’s activities that started a short time · Improving the quality of effluent water as-

29 Progress & Prosperity

sociated with exploration and production op- · The Company enclosed operations area with erations with view of injecting such water into a security fence for protecting it, thus adding a underground after processing and clearing it new block to the project of land greenery and of the associated oil within the expansion and expanding the area of reserves which play a development programs in oil production opera- noticeable positive role in: tions. - Reducing the sand advancement phenom- · The Company is seeking to establish an optimal enon. This further helps expand the beautiful HSE program, through technology transfer pro- green plant area and contributes to promoting grams and contracts with world major oil firms the biological diversification in the area. to identify the measure and methods special for · Among the vital projects, there is the annual realizing that program. Kuwait Oil Company is gardening competition which encourages soci- participating in organizing HSE seminar for oil ety to contribute to developing the agriculture sectors in the Middle East in cooperation with and expanding the greenery in Ahmadi city. each of Exploration & Production Forum and This had a remarkable effect in landscaping the International Petroleum Engineers Association. area and developing it environmentally. · The Company carried out a pioneering ex- · Under its strategic plan, the Company devel- periment in waste recycling through actual par- oped a public project represented in project for ticipation by Ahmadi inhabitants for separating keeping all gaseous, liquid and solid emissions household wastes and redirecting the same to and further all chemical waste in an accurate proper locations. database for benefiting from them in decision-

30 making and facilitating the performance in ap- · Coordination with the Public Authority for In- plying HSE scheme. dustry and the National Cleaning Company for · The Company is currently entering all file rules transporting inactive and dangerous waste from in the Geographical Information System (GIS) the Company’s operations facilities to Shuaiba for facilitating the process of dealing with diver- Waste Plant according to Cabinet’s Resolution sified and various information with the aim of No. 1002 dated 20/12/1998. developing, improving and speeding up its use · The Company has adopted HSE Benchmark- in service of information management and im- ing pioneering project within its strategic plan. plementation in a proper way in due time at the This enhances its status and places it in the fore- least cost. The system will serve as a specialized front of the region states in the field of HSE. data-bank that provides the information to all The project aims at comparing the Company’s Company employees. This will positively help in performance at all levels with that of similar management of oil exploration and production oil companies in the GCC countries for giving operations within the framework of HSE policy. prominence to distinctive points and adjusting · Water injection project at Wafra Field-Ratawi the standard of performance through imple- Reservoir has been commissioned in full for com- menting Gap Analysis in applications of HSE pletely disposing large quantities of effluent wa- management program wherever development ter through pumping it in wells instated of drain- and change are needed in comparison with ad- ing it in water gathering pools in the desert. vanced international measures and systems as

31 Progress & Prosperity

regards HSE program. pany fields of ordnance and explosives. · Project for identifying the measures and regu- · Cooperation with KISR in the program of re- lations for assessing the health environmental mediation of the soil oil lake polluted and build- hazards of projects presented by financers for ing the treated soil park in Ahmadi town. preserving the health and safety of the at- · Participation in various HSE activities, exhibi- mosphere of work environment and its sur- tions and workshops and local, regional and in- roundings. ternational conferences. · For limiting smoking phenomenon at work sites in order to reduce the direct effects on the health of smokers and indirect effects of pas- sive smoking within a special awareness pro- gram for activating the law which undoubtedly helps achieve the goal. · In addition, the Company participate in na- tional plan for combating oil pollution in marine environment which was represented as distinct emergency plan for combating oil contamina- tion in territorial waters which made it the lead- ing local and regional company in this field. · Implement a program for removal of all sourc- es of asbestos used for a long time over many years in the Company and its houses. This pro- gram is within a deliberate plan that ensures all means of safety and health during the removal and disposal these wastes. · The Company is devising a clear-cut program for measuring and assessing the environmental output of the projects it will carry out within the implementation of its independent or joint de- velopment plans. The Company is conducting environmental output studies of construction and industrial projects in coordination with the Environment Public Authority under Law No. 9/90. · Project for monitoring the quality of under- ground water located beneath the pools used for gathering effluent water associated with production operations. This water is often mixed with varied quantities of crude oil. · Continuing the process of clearing the Com-

32 GAS MANAGEMENT GROUP

· To keep up with today: World developments clean upon combustion and free from contami- and changes and entering gas era, Kuwait Oil nation. Company adopted the concept of being a lead- · Kuwait Oil Company, under its strategy, is er in penetrating this industry in order to keep looking forward to achieving high quality pro- pace with challenges and new conditions tak- duction of gas in the required quantities in lieu ing place in oil and gas sectors worldwide, Gulf of importing gas from neighboring countries to region and Arab world. fill up the shortage. In this regard, Kuwait Pe- · From this point, Gas Management was cre- troleum Corporation, in conjunction with Ku- ated in July 2004 under Circular No. 19/2004. wait Oil Company, works on developing plans · Kuwait Oil Company did not hesitate in join- and strategies for exploring free gas to be sepa- ing advanced countries and breaking into gas rate from associated gas in oil production. era in the course of utilizing this natural fortune · Kuwait Oil Company adopts the concept and in addition to shortage in gas quantity faced by goal set for reaching 1% in gas flaring due to State of Kuwait and hence there is a pressing very significant environmental and economical need for increasing such quantities, in particular return in addition to the benefit of energy sav- fuel gas in order to operate electricity power ings and all of these have positive reflections on stations and dispense with combusting heavy Kuwaiti economy. fuel due to air pollution resulting from this pro- · Keep ambitions and ideas aim at attaining cess. Therefore, to protect environment, there sound clean environment using best practices is no solution but using gas because it is very and methods in gas flaring processes. If natu-

33 Progress & Prosperity

ral gas becomes available in State of Kuwait, it huge projects approved by top management. will provide the opportunity to transmit gas to Accordingly, a comprehensive training plan was houses through various distribution networks designed for staff of Gas Management Group following the example of advanced countries in where technical cadres began to participate in addition to using such gas in various industrial preparing work papers and workshops in inter- sectors in order to maintain clean environment national organizations in addition to providing free from pollution. engineers and personnel with special experi- · Security and safety processes are the top pri- ence through contribution by global companies orities in relation to dealing with highly hazard- and international organizations specialized in ous materials. In this regard, an action plan reducing flaring rates, increasing production was developed to maintain security and safety and improving its quality. of personnel and facilities; get knowledge of · Gas Management Group aims on the short gas hazards and different methods for dealing term to attain full development in terms of pro- with it and staff’s good knowledge of ideal op- duction, operations, transport and marketing erations to avoid sudden shutdown events and gas to cover entire needs for energy in State of work-related accidents. Kuwait. · Kuwait Oil Company strives and plans for pro- viding and preparing technical caders required for keeping up with rapid development in gas industry and follow up in addition to supervising

34 TRAINING & DEVELOPMENT

The Company’s role and interest are obvious in tifying the training needs through the most up- qualifying national manpower since it opened to-date international methods, devises training the first center for technical training Magwa in policies and implements them by using all avail- 1951. A large number of Kuwaitis began train- able channels, e.g. preparing and implementing ing at this center and were acknowledged as the technical programs, managerial, secretariat and first craftsmen in Kuwait. English language program in cooperation with Training and development continued through KPC, all consultancy houses and institutions and opening in 1960 a training center equipped with Kuwait University. It also sends the employees the latest facilities and workshops. abroad for courses, programs, conferences and In the mid-sixties and seventies, the Company work with international oil companies for acquir- presented many training, services, secretariat ing further advanced expertise. Training and and administration program to qualify the Ku- development targets concentrate on preparing waiti youth for running oil production, exporting and qualifying new recruits, including university and refining operations. graduates and diploma holders, through special- At present, the Company is greatly interested ized programs in line with the requirements and in qualifying and developing the employees at goals of the Company’s strategic plan. all levels to upgrade their efficiency and prepare The Company does not neglect its national role them for managing the company operations in training through giving opportunities of field proficiently. To achieve this, the Career Devel- training to college, institute and university stu- opment Department prepares the plans for iden- dents within its various operations.

35 Progress & Prosperity

General Objectives: ment programs for the Company personnel in · The Company gives significant interest to hu- line with pace of oil industry development world- man capital due to its important and effective wide and give them the opportunity for train- role in achieving strategic objectives and optimal ing and promotion of their capabilities to match utilization of human resources through provision those of international companies’ personnel. of training and development opportunities. · Strategic thought for concepts related to train- · Job Training & Development Group endeavors ing and development was updated to keep pace to support 2020 strategy to achieve the Com- with the Company 2020 strategy as well as hu- pany future objectives. man development plans associated therewith · Transfer working environment in the Company which focuses on capitalization on national man- to a learning environment to motivate personnel and urge them for continuous self-development power as a primary source for accelerating de- through in-house programs and online learning velopment in all other activities and programs. programs provided by the Company to its staff. · Enhance organization and performance level in Strategic Objectives: developing awareness, qualifying and develop- · Design Strategic Objectives for training and ment programs to personnel with high quality. development based on requirements of earning · Work on providing the Company key function- phase in line with the Company 2020 strategy. aries with most significant administration and · Support and promote Kuwaitization plans leadership skills through holding development through development of national manpower ac- programs by many international experts special- cording to international standards. ized in management and leadership. · Facilitate technology transmission through co- · Continuous upgrade of training and develop- ordination with international companies.

36 MEDICAL SERVICES

In 1947 the Company relied on medical services 1980, it was decided to expand medical services from Kuwait City. In July 1948, the Company provided by Ahmadi hospital to cover all per- established a hospital due to the expansion of sonnel of the Corporation and its subsidiaries as the Burgan Field. It held 130 beds and employed well as staff families. Therefore, Ahmadi hospi- a large number of doctors, nurses and other per- tal is the main institution responsible for provid- sonnel, and provided services to the Company ing comprehensive medical services for oil sector for over 12 years. Medical care was provided pa- employees. Moreover specialist physicians were tients at the Ahmadi clinic 24 hours a day. Other recruited to work in various medical fields. In smaller clinics were established in Ahmadi, Shu- addition, the hospital could attract specialized waikh, Wara, Mina Al-Ahmadi and Raudhatain. efficient Kuwaiti cadres to work in medicine field At that time patient care was concentrated at including: Ahmadi Clinic where medical services were pro- - Medical records vided around the clock. On 27th of April 1960, - Health information system management Ahmadi Hospital was opened to provide medical - Diagnostic scans and treatment services for the company person- - Medical labs industry nel following issuance of Amiri Decree for estab- The hospital works on provision of best medi- lishing Kuwait Petroleum Corporation in January cal services in terms of sufficient experiences

37 Progress & Prosperity

and advanced medical equipments through sev- profession as a humane profession in the first eral departments including emergency, general place, the company holds an annual celebration medicine, internal medicine, protective medicine, for Internal Nursing Day besides celebration for surgery, Obs & Gyn, ophthalmology, ENT, den- diabetes day and other diseases. Several institu- tistry, radiology, anesthesia, intensive care unit, tions related to medicine profession participate physical therapy, laboratory, catering and ambu- in this occasion to provide guidelines and advice lance services. There are also consultancy clinics through lectures and responding to enquiries operated by specialists seconded by Ministry of which held patients to follow the right treatment Health, Faculty of Medicine in the State of Ku- system and overcome illness difficulties. wait to provide emergency and normal medical The hospital keeps up with the latest interna- services for the Corporation staff. tional medical developments on a continuous In general, the hospital services are categorized basis in order to promote its desired medical role into four types, i.e. diagnosis services, treat- in all specializations. ment services, protective services and cultivating services. These four ser- vice categories constitute the hospital strategy. The hospital also plays a prominent awareness role through delivery of lec- tures and holding medical conferences that benefit the community. In addi- tion, the hospital issues many medi- cal awareness manuals and brochures and distribute the same to patients and clients as the hospital manage- ment believes in importance of nursing

38 Kuwait Oil Company Main Office

39 Progress & Prosperity

Information Team Public Relations & Information Group 2008

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