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Issue No. 33, July - September 2005

Sheikh Talal Al Khalid Inaugurates

New Science & Knowledge Gateway

KPI at Par

with European

Competitors

Active Plans to

Combat Marine

& Land Oil Spill

KPC’s Green

Thump Project

New Life Style

Courses at

Petroleum

Training Centre



K P C W O R L D , J u l y - S e p t e m b e r 2 0 0 5

2

KPC W RLD

Our Mission

Kuwait Petroleum Corporation (KPC) is a corporation of economic character,

run on a commercial basis and fully owned by the State. It is one of the worldʼs

major oil & gas companies and its activities are focused on petroleum exploration

and production refining, marketing, petrochemicals, and transport.

KPC s̓ mission is to manage and operate these integrated activities worldwide in

the most efficient and professional manner, in addition to growing shareholder

value whilst ensuring the optimum exploitation of Kuwait hydrocarbon

resources.

KPC has an important role in contributing to the support and development of

the Kuwaiti economy, developing national manpower, maintaining superior

commercial and technical expertise and proactively managing the environmental,

health and safety aspects related to KPCʼs businesses.

Sheikh Talal Al Khalid Al

Sabah, Managing Direc-

tor Petroleum Services,

inaugurates new oil & gas

discovery exhibits at the

Scientific Centre, thereby

ushering in new science

and knowledge horizons.

8In this Issue

Kuwait Petroleum International Company seeks,

through its new strategy, to boost its financial rev-

enues in order to be at par with its European com-

petitors and gain ground in the emerging markets

of India and China.

16The Petroleum Training Centre in-

troduces new life style courses that

help employees overcome various ail-

ments.

12

Editor in Chief

Talal Al Khalid Al Sabah

Managing Director

Petroleum Services




3

Editorial Team

Media Relations Department

Artwork & Design

Khaled M. Mostafa

ALRIYADHI General Printing Est.

The KPC World Editorial Team expresses

its thanks and appreciation to all who

contributed photographs, editorial and

information material to produce this issue

of KPC World.

P.O.Box: 26565 Safat 13126 Kuwait

Tel.: (965) 2400960 - Fax: (965) 2407872

Website: www.kpc.com.kw

E-mail: [email protected]

2820KNPC Launches

its New Corporate

Identity.

A new contingency

plan set up by KPC

to offset the dan-

gers of marine oil

spills.

24 32Haithem Al Ghais,

KPC China Rep-

resentative Office

Manager asserts

that the Office is

able to rise up to

the challenges.

KPC’s Green Office

Project.




4

The Oil Sector : Towards

Progress and Achievement

All over its areas of activity, the oil sector sustains a strong commitment to resume its diligent quest of

construction and development towards maximizing achievement and accomplishment. This commitment is

unanimously held by all staff members of Kuwait Petroleum Corporation (KPC) and its subsidiaries. That

is why the successful achievements are evidently on the right track, and the confident steps made towards

progress and development in all activities imposingly incarnates the staffʼs ardent devotion and unshakable

belief in KPCʼs goals.

Over the past few months, the Kuwaiti oil sector witnessed a remarkable development evidenced by con-

cluding many contracts for executing a number of mega projects including for instance the Calciner Coke

Contract. The value of that contract, signed by Kuwait Oil Company (KOC), amounts to $ 1.22 billions, to

update 10 crude oil gathering centres and a gas booster station. In addition, another prominent example to

cite is the contract signed by Kuwait National Petroleum Company (KNPC) with Hyundai Company, the

value of which amounts to KD 117 millions, to upgrade the liquefied gas plant located at Al Ahmadi area.

The qualitative leap witnessed by the Kuwaiti oil sector is further evidenced by the decision made by the

Supreme Petroleum Council to establish the Petroleum Services Company with a capital of around KD 100

million. This purpose of the forthcoming company includes responsibility for the security and safety of Al

Ahmadi area, together with responsibility over Al Ahmadi Hospital, as well as providing the oil sector with

consulting and human resource services as well as other services beneficial to Company, e.g. acquiring,

purchasing, lending, constructing, managing and operating the necessary real estates and assets. Further-more, the Supreme Council declared the establishment of the Oil Development Company chaired by the

Managing Director of Kuwait Project, Mr. Ahmad Al Arbeed, with a capital of approximately KD 300 mil-

lions. The Company was established with the vision of supervising the foreign companies working in the

development of oil fields, and will operate in the same line of business assumed by KOC, i.e. oil rigging,

manufacture, production, development and selling oil and oil derivatives, together with the acquiring all

projectsʼ intellectual property, managing research and development programs, and collecting the oil and oil

products funds due to the State by virtue of contracts on behalf of the Financial Affairs Department.

In terms of upgrading the oil sector personnel, the Petroleum Training Center is in pursuit of improving

the employeesʼ skills by providing them with well planned training. The Centre began to implement the

new training plan starting by two specialized sessions related to the psychological health and manners of

handling work pressures. This issue involved an interview with the Managing Director Training Affairs &Career Development, Sheikha Shatha Al Sabah, to shed light on such innovative trends.

This trend is streamlined by KNPCʼs launch of a new logo in line with its strategic orientations and variety

of interests. To shed light on this matter, KPC World had a special interview with Mr. Muhammad Al Hajiri,

Manager of Public Relations.

At the global level, KPC has inaugurated its representative office in China, representing a step ahead to-

wards enhancing KPCʼs business in the promising Chinese market.

Talal Al Khalid Al Sabah

Managing Director Petroleum Services

Editor-in-Chief




5

Sheikh Ahmad Al-Fahad Al-

Ahmad Al-Sabah, President of

the Organization of Petroleum

Exporting Countries (OPEC)

and Minister of Energy affirmed

that OPEC is keen on keeping

oil price acceptable to help fur-

ther boost the world economic

growth and remove psychologi-

cal concerns in world market.

He said that a decision to hike

the cartel's oil production by

500,000 barrels per day (bpd)

as of July 1 and put into effect

a similar increase whenever

required reflects the belief that

conditions in the market have

not changed since a conference

in the Iranian city of Asfahan

when the decision was taken.

With this rise, OPEC official production

ceiling goes up from 27.5 million to 28

million bpd.

OPEC decided to lift its oil production

quotas in a move reflecting the organi-

zation's unease with soaring worldwide

energy demand. Having reviewed the

oil market situation and its immedi-

ate prospects, OPEC observed that the

market continues to be well supplied, as

a result of OPECʼs decision in March

2005 to increase its production ceilingto 27.5 mb/d, and that, consequently,

commercial crude and product stocks

have continued to build to comfortable

levels, around average in terms of days

of forward cover.

However, the Conference noted The

Sheikh Ahmad Al Fahad attributed the

rise of oil price to shortage of world

OPEC Raises Production to Calm

Surging Worldwide Demand

Sheikh Ahmad Al-Fahad Al-Sabah, President of

(OPEC)

oil refining capacity. He noted that thatworld crude oil prices remain high and

volatile as a result of concern about

a lack of effective global oil refining

capacity, in particular possible shortages

of middle distillates in key consuming

regions. Refineries, whilst already run-

ning at high utilization rates, are facing

difficulties in coping with strong distil-

late demand-growth.

He added that situation is being further

exacerbated by geopolitical develop-ments and increased speculation in the

oil futures markets. He said that politi-

cal developments last year also played

a role in the hike of oil price whereas

refinery is considered a major problem

this year especially that the United

States declared to reduce its derivatives

storage, which resulted in the increase of

the US oil by two dollars.

He also expressed hope to visit Beijingsoon to boost cooperation between

OPEC and China.

OPEC called on all parties concerned to

join efforts to maintain market stability,

with reasonable prices consistent with

robust economic growth, in particular in

the emerging economies of the develop-

ing world.

OPEC emphasized its particular concern

about the shortage of effective refiningcapacity required to meet future strong

demand growth, as a consequence of

under-investment in this sector, espe-

cially in conversion capacity, as well as

excessive regulation. OPEC, therefore,

repeated its call on industry and con-

sumer governments to urgently address

this challenge, which, if left unresolved,

will exacerbate oil price volatility.

s o u r c e :

A F P




6

KPC Launch Calciner Coke Project Kuwait Petroleum Corporation (KPC)

and its subsidiary Kuwait National Petro-

leum Company (KNPC) signed a 20-year

contract with Petroleum Coke Industries

Company (PCIC) in consortium with

a group of leading Kuwaiti companies,

thereby signaling the start of the highly

ambitious “Calciner Coke” Plant. The

project is considered the oil sectorʼs first

major alliance with the private sector.

Mr. Hani Abdulaziz Hussein, KPCʼs

Chief Executive Officer signed thecontract on behalf of KPC while Mr.

Wael Jassem Al Sagar - Chairman of

the Board of Directors of the Petroleum

Coke Industries Company, signed on

behalf of his company.

The contract was also signed by Mr.

Jamal Al Nouri, Managing Director In-

ternational Marketing at KPC, and by

the Managing Director for Refining and

Local Marketing and Chairman of the

Board of Directors of KNPC , Mr. Sami

Al Rushaid.

The construction rights for the Kuwait

calciner plant have been awarded to

PCIC through a bid process adminis-

tered by KPC. The concession period is

for 22 years. KPC will provide the entire

raw material required for the calciner at

an indexed price during the concession

period. Upon completion, the Kuwait

calciner plant will have a capacity of

350,000 MTPA.

The project is developed and imple-

mented by Al-Mal and A H Al-Sagar

and also the company's foreign col-

laborator, Oxbow Carbon & Minerals,

LLC, USA. This project has long been

sought after by the calcining industry

for expansion due to its access to ex-

ceptional quality raw material (Green

Petroleum Coke) and also with the fast

expanding aluminum production in the

region.

Mr. Hani Abdulaziz Hussein said thatsigning the contract is the outcome of

a series of successful negotiations be-

tween both parties and as a confirmation

of KPCʼs belief in the importance of in-

volving the private sector and privatiz-

ing successful industries.

In implementation of its new strategic

directions, the Corporation started to

privatize vital projects such as the chlo-

rine salt plant, fuel stations and the oil

blending plant that is completely sold to

the private sector.

Mr. Hussein said that the future would

witness an expansion of the private sec-

torʼs role in the oil industry. The private

sector, he added would contribute to the

overall development of the sector and

ensure an added value for the national

economy.

First of its Kind

The calciner coke project is the first of

its kind in terms of its nature and size,

and is carried out through huge contri-

butions of the oil sector, thereby repre-

senting a model to follow in all privati-

zations.

The project will cost around KD 150

million and will cover an area of 265,000

square meters that was privatized by the

Public Authority of Industry in Al Sh-

uaiba industrial area.

Kuwait Industrial Bank has contributed60% of the investments of the project

whereas the Kuwaiti and foreign private

sectors have contributed the remaining

40%.

The calciner coke project ranks sec-

ond among other plants in the region in

terms of its production capacity, follow-

ing the number one Alba plant in Bah-

rain. However, it is considered as the

first plant in the world in terms of the

raw materials it possesses that will be

provided by KNPC for the coming 20years at prices defined by the contract.

The capacity of the Kuwaiti plant is es-

timated at 350,000 tons of calciner coal

and the capacity of the Bahraini plant is

of 450,000 tons.

One of its other features is that it will

produce steam along with calciner coal,

thereby helping to produce electrical

power with a capacity of around 52

Megawatts.

Events & Activities




7

Kuwait National Petroleum Company

(KNPC) signed KD 117 million con-

tract with South Korean Hyundai En-

gineering to upgrade Liquefied Natural

Gas (LNG) plant in Mina Al Ahmadi

Refinery. This will modernise the plant

at Al-Ahmadi refinery by enhancing the

ethane recovery rate.

Mr. Sami Al Rushaid, Managing Direc-

tor for Refining and Local Marketing

and Chairman of the Board of Directors

of KNPC, said that the execution of the

project is expected to be finalized within

30 months.

Al Rushaid added that the project would

boost output from the current 55% per-

cent to 96%. The extracted quantities

will be used as a feedstock for the petro-

chemical industry.

With regards to the current unused

percentage of extracted gas Al Rushaid

said that this quantity will be used pres-

ently as fuel but it will be economically

more feasible if it is turned into a feed-

stock. He also mentioned that Hyundai

Company would be responsible for

the engineering works, the materials,

the construction and the installation

works.

It is noteworthy that Hyundai Company

is actively working on another major

project, which is building a pier for

KNPC worth KD 100 million.

The ethane will be sold to Petrochemi-

cals Industries Company to be used as

feedstock for the production of petro-

chemicals.

KNPC Sign KD 117 Million Project with Hyundai

Kuwait Oil Company (KOC) signed a

KD 360 million with the South Korean

Company SK Engineering and Con-

struction Company to upgrade and re-

locate underground process piping at 10

gathering centers and a booster station.

The contract has been described as the

biggest in KOCʼs history. Mr. Farouq

Al Zanki, Managing Director for Ex-

ploration and Production- Chairman

and Managing Director, Kuwait Oil

Company, said that this contract will set

KOC for the next twenty-years, provid-

ing a completely new infrastructure and

adding significantly to KOC production

capabilities. The continued efforts and

team cooperation will lead to a safer

work environment for KOC employees

and give them the confidence to reach

the target for increased production ca-

pacity. He also called for the timely

completion of the contract.

The project includes relocation of under-

ground oil & gas piping inside gathering

centers (1,2,9,10,11,17,19,20,22) and

booster station 170 and installation of

HP wet separator/LP wet separator, de-

salters and associated facilities. As well

as installing new water/oil separators and

condensate recovery units.

The aims of the monumental project

are: increasing KOC production ca-

pacity, improving the company health,

safety and environment practices,

enhancing the production associated

water-handling capabilities, decreasing

gas-flaring.

The Biggest in its History

KOC & Korean SK Sign KD 360 Million Deal

Sami Al RushaidManaging Director for Refin-

ing and Local Marketing and

Chairman of the Board of

Directors of KNPC

Farouq Al ZankiManaging Director for

Exploration and Production

Chairman and Managing

Director, Kuwait Oil Company




8

Talal Khalid InauguratesNew Gateway To

Science & KnowledgeSheikh Talal Al-Khalid Al-Sabah, Managing Director Petroleum Services, on behalf of the Minister of

Energy Chairman KPC Board of Directors, Sheikh Ahmad Al-Fahad Al Sabah, inaugurated the newOil and Gas exhibits at the Exploration Hall at the Scientific Centre, thereby opening a new gateway for

knowledge and science.

The exhibits were true to life depiction of the oil industry and present visitors with a general yet

comprehensive overview of the oil industry. The new Discovery Hall includes interactive displays

that present a historical overview of oil formation, and a brief outline of the various aspects of the oil

industry such as: exploration, drilling, storage, refining, distributing, export and petrochemical industry.

Additionally, the exhibits underline the importance of security and safety in this vital industry.




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As mentioned, the new Discovery Hall

allows the visitor to gain an insight

into the nature of the oil industry

in an interesting and fun manner.

Visitors can learn how to drill an oil

well and how to load oil on tankers

through pipelines and valves. The

exhibits also include illustrations of

certain industrial processes such as

converting oil into tires and plastic

materials.

In the following interview, Sheikh

Talal Al-Khalid Al-Sabah sheds light

on this pioneering project.

Can you outline the background of

KPCʼs sponsorship of the new oil andgas exhibits at the Scientific Centre?

Guided by its educational and socialmission, KPC earnestly supports allscientific and cultural projects that seek

to cater for the needs of those who pursueknowledge and desire to increase theirself-education. In this context, the newdisplays provide valuable informationabout oil, which is the most importantdriver of the Kuwaiti economy.

KPC makes a deliberate effort toincrease awareness of the importanceof oil and a general understanding of the structure of the Kuwaiti oil industry,thereby highlighting the prominent role

played by the oil sector in our nationaleconomy.

The inauguration of the project was thefruition of an 18-month cooperationbetween KPC and the Scientific Centre.

The idea was that the exhibition hallwould serve as a pioneering and uniquescientific and educational project, andis another achievement standing to thecredit of Kuwait Petroleum Corporation.

To this end, KPC made available aspecialized team with considerableexperience in oil sector affairs to ensurean effective display of the oil industryprocesses. Special efforts were made toensure that the displays are understood

Sheikh Talal Al-Khalid Al-Sabah touring the

exhibit.




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by visitors of all age groups, startingwith kindergarten children.

Tremendous care was taken to ensurethat the displays would combineaccurate scientific information, factualpresentation and models that reflectthe way things are in the Kuwaitioil industry. Needless to say, KPCʼssponsorship of the new Discovery Hallhas built a strong bridge that promotescontacts between the Corporation andsociety, and furthers oil educationamong the young, thereby satisfyingtheir natural curiosity and quenchingtheir thirst for knowledge.

KPCʼs contribution to the educationprocess started with the publishing of the first childrenʼs story “The Storyof Naftan”, followed by “Yakhdoorand the Environment ”, within theframework of our plan to increase ourreleases of enlightening publicationsfor the benefit of children. Thesepublications are designed to appeal tothe childʼs brain and imagination, usingsimple classical Arabic and relying on

interesting examples that further thechildʼs curiosity.

What exhibits are displayed at thenew exploration hall?

The new exhibition hall contains interactivedisplays that induce visitor attention,starting with a historical overview of oil formation, then a brief outline of the various aspects of the oil industry:exploration, drilling, storage, refining,distributing, export and petro chemicalindustry, in addition to the concept of security and safety in this vital industry.

The exhibits are displayed over an

area of 56 square meters and include33 items that reflect the variousprocesses on the oil and gas industry.The development of the explorationhall was the result of extensive field

studies and numerous meetingsheld by The Scientific Centre witheducation specialists, administratorsand teachers in various stages of education, all of which indicated theimportance of providing such exhibitin Kuwait, given the fact that the oilindustry forms the prime economicresource, and in view of the difficultyof visiting the physical locations of these processes because of securityand safety considerations.

The exhibits were true to life depiction of the oil industry andpresent visitors with a general overview of the oil industry.




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The Scientific Centre

The Scientific Center is a gift to the nation, the

largest Aquarium built in the Middle East, by Kuwait

Foundation for the Advancement of Sciences. The

Scientific Center serves as a Center of excellence for

environmental education in the Arabian Gulf region.

Visitors can focus on the natural habitats of the sea,

with underground passages rich in marine life, natural

habitats of the coastal edges and the desert of the

Arabian Peninsula.

Discovery Place

Discovery Place is alive! Energy is all around us-

from the simple machines we use every day to the

petroleum products used in cars and airplanes. Young

and old alike can enjoy interactive exhibits including

the creation of electric circuits and the discovery of the

world of oil like a petroleum engineer. Discovery Place

enables visitors to experience the joy of learning the

secrets of petroleum and petrochemicals through these

hands-on exhibits.




12

Steady Steps TowardDevelopment, Success

Kuwait Petroleum International (KPI) is stead-

ily standing on solid grounds by occupying a

prominent status within the international ener-

gy markets characterized by fierce competition,

especially in light of the rapid market changes

and volatility worldwide.

The unique status and image held by KPI in the

global market is enhanced by its outstanding

ability on continuous development, which quali-

fied it to be the international arm of Kuwait Pe-

troleum Corporation (KPC).

KPI:



13

As such, it will launch for extending KPC's

influence in major International oil markets

including but not limited to the Europeanand Asian markets.

Accordingly, and given the tough compe-

tition among major players in the energy

market, KPI holds the view that survival is

for the fittest; a quality that makes it possi-

ble to stand the winds of change and rivalry

through keeping abreast with the latest de-

velopments with the utmost flexibility.

These facts were emphasized by Mr. Abdul-

latif Al-Houti, KPIʼs President. “Our fore-

most objective is to achieve better returns

on our investments through a determined

pursuit to shift our previous focus frommerely obtaining a market share to realiz-

ing profits comparable to those realized by

companies operating in the same regional

markets", he says. “To arrive at this high

end”, he continues, “it was mandatory to

conduct a periodical review of our overall

activity in order to ensure that the intended

activities are being carried out effectively

and that such activities arrive at their tar-

geted objectives. We are confident in our

ability to achieve our objectives through re-

liance on our outstanding financial systems

and resources, backed by the unparalleled

competence of our human resources."

Al-Houti added that he expects a wider

expansion of KPIʼs operations after its re-

structuring by means of operating outside

the European arid market, steering towards

such new promising marketplaces as the

Indian and Chinese markets.

KEY DRIVER TO SUCCESS

In its plan to achieve further growth and

success, KPI is guided by KPC's long term

strategic directions known as the "2020

Strategy.” Noteworthy, finalizing the strate-

gic directions constitutes one of Al-Houti's

most significant achievements during his

tenure as Executive Assistant Managing Di-

rector Strategic Planning at the Corporation

before taking over the reins of KPI.

For further elaboration to the above-men-

tioned Strategy, Al-Houti explained "In

the last quarter of the year 2002, KPC

embarked upon a comprehensive review of

its strategy, including those directions to be

maintained by KPI. In this respect, several

scenarios related to KPI were set and pre-

sented to the Supreme Petroleum Council

who approved them by the end of 2004.”

KPIʼs President went on to emphasize that

the Companyʼs long term strategy requires

the realization of returns comparable to

those realized by competitors within a five-

year time frame “due to the fact that the

present modest rate of return ranging from

3 to 4% does not reflect the size of our in-

vestment in Europe. Therefore, we need to

realize returns paralleling the size of our in-

vestment in light of the fact that the returns

realized by similar players range from 6 to

10 %", he added.

Al-Houti further clarified that the new strat-egy was built upon two elements, the most

important of which involves what is com-

monly known as the “Self Help" approach

according to which the company shall dis-

pense with external assistance. To exem-

plify, an in-house study was conducted with

a view to restructure the company-owned

fuel station networks, with two alternatives:

either the overall station networks existing

in every individual country will be consid-

ered within one framework, or each country

will be treated as an independent unit. "KPI

has approximately 4000 stations in Europe,

the majority of which, "3500", are locatedin Italy alone, while around 1500 stations

are located in the Netherlands, Belgium,

Luxemburg and France" he added.

These fuel stations are run in Europe based

on four management systems categorized

as follows:

- The COCO System by virtue of which the

company owns and manages the stations

- The CODO System, whereby the Com-

pany owns the assets without managing

them. Noteworthy, this system is also the

prevalent trend in the UAE.

- The DODO System, whereby the Com-

pany does not own the assets, whereas

the owner is committed to supply the

Company with contracts

- The Automat System, which involves

self-service, where the fuel is paid for by

a credit card.

Meanwhile, Al-Houti lauded the decision

taken by the KPC's Board of Directors in

September 2004 whereby the work of the

International Business Development sector

was transferred under the umbrella of KPI.

"This decision allowed the company to

extend its global area of activity, hence in-

crease its potentials to compete in new and

developing markets by seizing investment

opportunities in the promising markets

of East Asia, India and China. Following

the development of the 2020 Strategy, it

was logical to merge the operations of the

International Business Development Sec-

tor with KPI, together with enhancing and

developing KPI's existing resources and

know-how, given the homogeneous nature

of its functions.

OPERATIONAL RE-STRUCTURE

Al-Houti emphasized that KPI faces the

challenge of restructuring its operations.

Therefore, it was decided earlier this year

to consider the company's organizational

structure, hence the operational re-struc-

Abdullatif Al-Houti

KPIʼs President

s such, it will launch for extending KPC's

nfluence in major International oil markets

cenarios related to KPI were set and pre-

ented to the Supreme Petroleum Council

”





14

ture. The previous organizational hierarchy

included a president and a vice president

in charge of operations. Under the new

structure, the Company Board is chaired

by a president assisted by three vice-presi-dents in charge of Operations, Planning

& Business Development, and Financial

and Administrative Affairs respectively.

The new structure will give momentum to

the Company's operation especially with

regard to strategic thinking and planning to

stand the challenges faced by our operations

worldwide.

With regards to the companyʼs intention to

dispose of certain assets in Europe, follow-

ing its decision to sell part of its assets in

Great Britain, Al-Houti clarified that it is

the company's policy to weigh the statusof achievement for its activities. “There-

fore, KPI is keen on developing any facility

achieving the planned objectives. Mean-

while, whenever an activity proves to be

unprofitable or that it does not achieve its

targeted returns, the company starts to re-

consider its status. On these grounds, having

found that our presence in Britain only al-

lows us a market share of 3 to 4%, which put

a question mark on the feasibility of operat-

ing such assets at all. When we studied the

situation, two alternatives were on offer: the

first involved the fact that to realize accept-

able returns we will have to multiply the sta-

tions number and size by 3 or 4 times. The

second was to exit the fuel station market

in Britain altogether. Based on this study,

and following a performance appraisal, it

was found that operational expansion will

by no means be financially feasible, hence

the decision to withdraw from the British

market in terms of both retail and wholesale

operations. Noteworthy, KPI owns no fuel

stations in Britain at present, but operates

on a lease basis (according to the DODO

System indicated above). However, we con-

cluded agreements with the station owners

to allow operation under KPI's Logo untilthe contracts expiry” he explained.

He added that KPI operates in 24 major

international airports, six to seven of which

are in Britain, in addition to other services

including the diesel lubricating oils with

full coverage all over Britain, as the Com-

pany owns a large diesel and lubricant oils

plant there.

In relation to locations in central Europe,

both important and large, Al-Houti em-

phasized the fact that studies are still in

progress to find out the optimum ways toenhance KPI's presence, improve opera-

tional performance, and expand its business

with a view to maximize returns, particu-

larly in Italy, Belgium, the Netherlands and

Luxemburg.

With regard to the situation in other parts

of the world such as Thailand, Al-Houti

commented that a study, focusing on KPI's

role, was also conducted on the Thai mar-

ket characterized with fierce competition,

where the situation was found to be similar

to that of Britain. To cope with such com-

petition, the Company will have to inject

enormous capital funds to achieve any re-

warding financial returns. Yet the potentials

of such rewarding returns were found to be

low, and it is unlikely that the investment

will achieve the targeted objectives. Based

on these findings, the decision to withdraw

was taken and the Company's retail and

wholesale assets in Thailand were sold, ex-

cept for those operating within airports.

BUSINESS EXPANSION IN ASIA

In relation to his recent visit to India, and in

response to a question concerning whether

the Company is planning to expand its oper-ations in the Indian sub-continent, Al-Houti

stated. "India represents an important mar-

ket for Kuwait, as a number of private oil

companies have recently emerged there. KPI

is working towards establishing partnership

relations with governmental and private en-

tities or opening dialogue with them with a

view to study investment opportunities that

would eventually lead to signing long-term

contracts to supply such entities with crude

oil. KPI also plans to establish a refinery, as

well as developing projects to build crude

oil storage depots. Al-Houti also pointed

out that, during the visit paid last year byHis Highness Prime Minister, Sheikh Sabah

Al-Ahmed Al-Jaber Al-Sabah, to East Asian

countries, a protocol of cooperation regard-

ing oil was signed with the Chinese govern-

ment by virtue of which companies of both

sides will be able to discuss prospects of co-

operation and exchange the know-how."

"The trend towards expanding the Compa-

ny's operations in India and China started

earlier in 1994-1995, as the Company iden-

tified those two countries as major growth

areas, representing a prospect intensified by

the fact that there have been huge increase

rates in crude oil consumption in these mar-kets, particularly since 2002. China has now

surpassed Japan as an oil consumer, with an

annual consumption growth rate of 6 -7 %"

Al-Houti continued.

“Frankly speaking, one must admit that

over the past years, KPC achieved no tan-

gible results on the Asian markets, which

can be attributed to several factors chief

among which is that these markets were

strictly state-controlled. However, since




15

, u y -

e p e m

e r

15

2002, these markets started to open up, and

negotiations were started with companies

in both countries. We are now emphasizing

the Company's ability to supply them with

crude oil under long-term contracts. Thereare many promising opportunities and good

prospects, which still require considerable

efforts to be exerted involving negotia-

tions, discussions, and meetings in order to

alleviate all sorts of pressure and arrive at

transparency regarding relevant issues." He

added

Al-Houti pointed out that having studied the

situation in the Asian market, KPC felt the

need for expansion at the Chinese arena, par-

ticularly the airport areas that are currently

developing at a remarkable rate, especially

with the approaching of Olympic Games ac-tions scheduled to be held in China by 2008.

"Chinese airports", he said, "are expected to

witness considerable congestion throughout

the period to come. We need to establish our

presence in one of the Chinese airport just a

launching base towards deployment in the

other airports in this high potential market.

KPC opened a representative office in China

this year, and KPI already supplies fuel to

Hong Kong Airport."

Other prospects include the South Korean

market, where Al-Houti pointed out that

KPI is seeking to enter into investments

with Korean companies in order to enhancethe Companyʼs position and create chances

in that country.

Based on the above, KPI is currently under-

taking the overall responsibility at the glo-

bal level for developing KPC's global activ-

ity, improving performance, and increasing

production, which will ultimately enhance

the Company's competitive edge within the

world energy market, hence higher returns

on its investments.

KPIAC :

World’s Best

Regional Jet Fuel Marketer

To be voted the best by the customers themselves is perhaps the greatest recognitionof a companyʼs success and undoubtedly the finest tribute to the people behind thebrand. Voted the Worldʼs Best Regional Jet Fuel Marketer in one of the industryʼsmost prestigious surveys and also winning the Best Overall award at the same time,

Q8 Aviation is celebrating and deservedly so.

The Armbrust Aviation Group (AAG) survey is undisputedly one of the industryʼsmost respected performance benchmarks. The survey asks airlines from around theworld to evaluate jet fuel marketers and airport operators on a range of criteria.With more than 70 airlines taking part in the 9th annual AAG survey, Q8 Aviationwas chosen as the World's Best Regional Jet Fuel Marketer. Not only that, but air-lines also voted Q8 Aviation ʻBest Overallʼ and when asked which companies theywould like to do more business with in 2005, Q8 Aviation was again the first choiceamongst the regional airlines!

Ross Baker, managing director Q8 Aviation, is understandably delighted with theaward. “It provides us with the best possible feedback regarding the strategies wehave been pursuing, the wholehearted commitment of our team within Q8 Aviation,the short lines of communication and our key focus on delivering the best possible

solutions for our customers,” he commented.

Survey respondents placed Q8 far ahead of other regional jet fuel marketers witha total score of 286 points. Across the Africa, Middle East and European regions,Q8 led the field in seven of 10 service categories including Most Innovative, BestStaff, Values Relationships, Best Informed, Best Organisational Structure and MostImproved!

The surveyʼs results clearly prove that Q8 Aviation is quickly gaining ground inpositioning itself as a leading jet fuel marketer. To be voted the ʻMost Improvedʼregional supplier for example, reflects very positively on Q8 Aviationʼs focus onconstantly improving its services.

ʻWe work incredibly hard all the time at improving the way we do business. I believethat Q8 Aviation is in great shape and very well placed for expansion. The fact that

so many airlines hope to give us more business this year is fantastic news,ʼ com-mented Nick Nigel, Q8 Aviation global sales manager.




16

New Life Style Courses at Petroleum Training Centre

“Back to Nature” phenomenon has swept the world. In every part of the world, people are steering away

from traditional medicine and veering towards alternative therapy, discovering in the process astonishing

physical and physiological benefits of such approach.

Following the path sought by major oil companies keen on providing the training tools that guarantee

a sound work environment, KPCʼs Petroleum Training Centre has introduced a series of new training

programs focusing on the topics related to methods of self-treatment and alternative medicine.

The abovementioned training course topics introduce to participants the principles of a revolutionary yet

basic technique called “Transformational Breathing” and its healing power.

Through a gaining understanding of Transformational Breathing approach, participants will be able to

reduce physical pain by regulating their breathing. Few people know that Transformational Breathing is

a consistent art and science that can be taught to anyone interested in self-treatment through appropriate

training. Surprisingly, experts state that most people spend their lives unaware of the principles of good

breathing deemed as the most vital source of energy to the human body.




17

Good Breathing Surveys covering thousandsof people and groups have shown that 80%of the surveysʼ sample participants sufferfrom restrictive breathing problems andthat the amount of air they breathe does notexceed an average of 20 to 30% of the realcapacity of their lungs, which in turn resultsin depriving human cells of the proper

amount of oxygen ultimately causing strainand fatigue. That is why, being unaware of good breathing principles and techniques,people lose the most important source of energy, thus deprive themselves of enjoyinga healthy life.

Efficientbreathinghasbecomeanecessityinthis modern and complicated era especiallyas time seems to have a strong hold on ourlives. Indeed, most of us are always in ahurry. It is also true that the air we breatheis not completely pure in the city lifecharacterized with roads and heavy traffic.Our hectic lifestyle is also considered as themain factor behind chronic psychologicalpressure and fatigue.

Sheikha Shatha Nasser Al Sabah,Managing Director Training Affairs& Career Development, asserts that thisnew training curriculum and methodologylaunched by the Petroleum Training Centreis consistent with the overall strategy of theTraining Sector with a view to provide thetraining programs and necessary tools tostrengthen the personnelʼs endurance amidwork pressures along with promoting theirwork performance.

These new programs teach participantsthe methods of transformational or deepbreathing and the methods of inhaling fullair into the lungs. Furthermore, participantsget acquainted with their own restrictivebreathing patterns, and therefore, they willbe able to improve such breathing patternsthrough this training technique.

Early in 2005, the Petroleum TrainingCentre introduced three training sessionsinto the program of psychological health oralternative medicine which received verypositive feedback from the trainees. Thus,

the Centre Management decided to add thesesessions to the 2005/2006 training plan.

Regarding this new training curriculum,KPC World had the following brief interview with the Managing Director forTraining Affairs & Career Development.

What are the goals behind thepsychological health training programs?

Caring for the psychological health of human resources is one of the modern

trends prevailing in global organizationsand corporations who have startedsetting up special programs, plans andlegislations related to the psychologicalhealth. Therefore, these programs wereorganized in the Petroleum Training Centreto introduce the personnel of the oil sectorto the principles of homeopathy, known

today as the “alternative medicine” andraise their awareness regarding diseasesand the methods of disease prevention byexploiting the sources of energy inherent inthe human body.

These programs also include informationabout the first aid concept and the wayof dealing with work injuries, whileintroducing participants to the soundnatural breathing mechanism and theway it is used to reduce psychologicalpressure and strain. This is supportedby awareness of the fundamentals of homeopathy or alternative medicine,together with exploring the zonesemotions and reactions, e.g. anger, in thehuman body, in addition to stimulatingcentres of energy. This is performedthrough a series of simple exercises usefulfor all trainees, particularly those who arevulnerable to psychological pressure andthose who cannot control their reactions.Through these new training programs,we can improve psychological healthto reach satisfactory and stable results.In order to execute these programs, theCentre has cooperated with ResonanceCompany, and the courses are delivered

by Dr. Hanaʼ Shams.

How did the trained staff respondto these new training programs, and

how did such training reflect on their

efficiency and success?

So far, five training sessions related to thepsychological health programs were held.The turnover of employees in general washigh as seen below:

1) The training program entitled“Homeopathy for EmergencyConditions and First Aid (Arabic)”held from 16 to 17 January 2005, wasattended by 13 participants and the rateof audience reached 65%.

2) The training program entitled “Know

Yourself and Breath your Stress Out – Females” held from 14 to 16 March2005, was attended by 12 participantsand the rate of audience was 80%.

Sheikha Shatha Nasser Al Sabah

Managing Director Training Affairs &

Career Development




18

How did you discover Homeopathy

and alternative medicine?

I was very lucky to join a group of

people here in Cairo (foreigners and

Egyptians) who had an agreement with

a British university in London to send

us a homeopath specialist every month

to teach us for a week and to see cases.

This new science captured my interest

and after a long journey of studying

and observing clinical cases, I got my

5-year certificate in homeopathy from

London International College of Ho-

meopathy-London UK. Homeopaths

generally do not need a medical back-

ground. However it is very helpful and

many doctors allover the worlds are ho-

meopaths as well.

What is Homeopathy and its His-

tory?

Homeopathy is a complete system of

medicine founded by Samuel Hahn-

nemann (1755-1843). Hannemann was

a German Physician who gave up on

practicing medicine as they were using

Alchemical Breathing:

3) The training program entitled “KnowYourself and Breath Your Stress Out – Females (Arabic)” held from 28 to30 March 2005, was attended by 18participants and the rate of audiencereached 60%.

4) The training program entitled“Transformational Breathing – Males(Arabic)” held from 10 to 12 April2005, was attended by 21 participantsand the rate of audience reached 90%.

5) The training program entitled“Transformational Breathing – Females

(Arabic)” held from 24/4/2005 to 26/4/2005. The number of participants was20 and the rate of audience 80%.

This clearly reveals a positive responseby the trainee employees to these newprograms. The final evaluation ratings of the trainees for these programs rangedbetween “Excellent” and “Very Good”.

What are the training programs coveredby the new training plan, and whatare the future programs you wouldlike to offer in the field of alternativemedicine?

In view of the remarkable turnoverrealized through these programs, thePetroleum Training Centre will offer themonce more to the oil companies in the2005/2006 training plan. These programswill be organized according to the needsof KPC and subsidiaries. Several contactsare currently made with the training firmsorganizing such programs in order tostrengthen the employeesʼ psychologicalhealth and identify the new concepts thatcan be introduced into the future plan.

blood letting to heal ailments. He then

decided to work as a translator. One

day when translating an article written

by a Scottish doctor, it was saying that

Quinin was a good medicine for ma-

laria because it was a good astringent.

But Hahnemann knew more astringent

substances that had nothing to do with

malaria. So he decided to try Quinin

himself to find out about its effects. To

his astonishments he developed ma-

larial symptoms; fever, malaise, shiver,

sweating etc. This was when he knew

that Quinin treated malaria, not because

it was an astringent but because when

given to a healthy individual would in-

troduce malarial symptoms. This made

sense to Hannemann as it proved the

very old principle of “Like treats like”.

Like the ancient Greeks when for in-

stance they had a patient with diarrhea

they prescribed purgatives to enhance

the bodyʼs own reactions.

Thus the difference between conven-

tional medicine and homeopathy is how

homeopaths acknowledge symptoms.

In conventional medicine a symptom

After discovering the remarkable benefits of alternative medicine, Dr.

Hanaa Shams El Din, leading oral surgeon, was spurred to learn the

nuances of this fascinating science. Now she is a certified physician in

Homeopathy and has been presenting a series of well-received train-

ing courses on the importance of learning the techniques of Alchemical

Breathing at the Petroleum Training Centre. In her inimitable sponta-

neous style she talks to KPC World about the myriad benefits of this

revolutionary self healing technique.

New PerspectiveonLife




19

illnesses after practicing Alchemical

Breathing.

What are the benefits of Alchemical

Breathing?

It has been found that restrictive

breathing patterns support subcon-

scious defence mechanisms to suppress

unpleasant emotions. In fact, such un-

healthy breathing patterns are often the

result of previous attempts to cope with

traumatic emotional or physical events

dating back as early as birth. When

feelings go unexpressed they are con-

sciously repressed or subconsciously

suppressed or stored in the mind and

body as chronic tension. It is inevita-ble that unexpressed feelings/emotions

are eventually expressed as pain and

disease. Since feelings are a form of

energy, which cannot be destroyed, but

can only change form, it is our respon-

sibility to Alchemise & transform this

energy before it causes disease in our

bodies and/or minds.

Breathing is the one involuntary meta-

bolic function that becomes voluntary

the moment we choose to take thereigns. This begins to explain why Al-

chemical Breathing ultimately leads to

the vivid experience of co-creating our

lives consciously, instead of being the

result of random thoughts and events.

We can choose to be at the mercy of

life, or we can choose to master it.

Another benefit is that Alchemical

Breathing brings focus to the mind,energy to the body in general, and

strength to the muscles specifically.

It also increases focus, performance,

and endurance. It also increases en-

ergy level and reduces stress. It also

clears the way to better spirituality as

it enhances the bond with the spirit.

Increasing oxygen levels in the blood-

stream is key to increasing the energy

available to the mind and body. Al-

chemical Breathing sessions energize

participants with a large immediate in-flux of oxygen. It also retrains breath-

ing mechanisms (muscles, lung tissue,

habitual patterns) to take in more oxy-

gen when stressed instead of the anxi-

ety ridden FIGHT or flight reactions.

Can you advice readers on how to

lead a healthier life style?

You need to follow the teachings of

our Prophet (pbuh) and our religion.

One cannot underestimate the power of smiling so you need to smile when you

meet others. To establish a healthy life-

style you need to exercise at least three

times a week. Try to get an eight-hour

night sleep at least four times a week to

recharge your body. A diet full of fresh

vegetables, fruits, whole grains and

drinking lots of water is essential. No

need for meat except once a week.

is a manifestation of a disease. In ho-

meopathy symptoms are acknowledged

as the mechanism chosen by the body

to treat itself. That is why homeopathy

never attempts to suppress them. In ad-

dition to that if the medication used isgiven to healthy individual will intro-

duce the same symptoms they treat.

Can you explain the importance of

Alchemical Breathing?

Oxygen-rich blood is the key element

needed by the body to create healthy

cells. Healthy cellular regeneration is

essential for good health: it has proven

to be the antidote for many sicknesses.

On the other hand, if most people are

using only one-third of their Lungswhen they breathe, they would be get-

ting only around 30% of the air and

oxygen they need for good health. Is

it any wonder that one out of every

two people is experiencing serious

disease? Alchemical Breath teaches

how to breathe more effectively. Al-

chemical Breath techniques open up

the entire respiratory system to allow

for more frequent and freer in and out

flow. Alchemical Breath increases

oxygen levels and breathing capacityby restructuring individual breathing

patterns so that a personʼs air volume

increases, by two or three times or

more. There are many documented

accounts showing that physical symp-

toms disappear in clients with chronic

Dr. Hanaa Shams El Din




20

KNPC Unveil

New CorporateIdentity

Kuwait National Petroleum Company (KNPC), a KPC subsidiary in

charge of the refining industry in Kuwait, launched its new corporate

identity early this year. The new visual identity, consisting of a new

corporate logo was applied throughout KNPCʼs installations and fuel

stations.

The new logo stands for key attributes for which KNPC is known:

energy, performance, innovation, and its avid concern for HESE. The

new corporate identity is emblematic of these attributes, as well as

KNPCʼs leading role in the refining industry and the company's posi-

tive reputation among its customers, partners and suppliers.




21

To shed light on KNPCʼs new corporateidentity, KPC World visited the compa-

nyʼs Public Relations Department which

is charged with overseeing the transi-tion to the new logo and implements the

process to phase out use of the old logo

throughout the company.

Over the coming months KNPC will ap-

ply its new identity across all operating

units. It will appear in company commu-

nications and at facilities and offices.

The department manager and the mas-

termind behind the media campaign, Mr.Mohammad Al Hajeri casts light on the

new logo which replaced the old logo

that has been used for around 60 years,

and to discuss other matters that are of paramount importance.

The interview follows

Can you tell us more about the newidentity and the significance of itscolours?

Our new identity and logo signals KNPCʼsunique position in Kuwait and symbolises

its various principal attributes. The colours

selected for the new logo are highly con-sistent with the business, the deep-rooted

expertise and the evolution of KNPC. The

flowing, seamless colours of the new logo

also represent the capacity and long expe-

rience of the Company in the oil industryas well as the standards which it strives to

achieve with its personnel. This is embod-

ied by the red colour which symbolizes thepower and deep-rooted presence of KNPC.

The green colour represents the economic

and industrial power of the Company aswell as the unwavering energy of its per-

sonnel. The green colour also embodies

the Companyʼs care for the environment,

security and safety and its keen interest toprovide clean sources of energy. The blue

colour reflects the spirit of innovation and

development represented in the use of modern technologies.

The launch of the new logo wassupported by an intensive mediacampaign. What did this cam-paign include to promote the newlogo?

We had clear objectives and a veryclear idea of our target audience

while planning our media cam-

paign. Any successful campaign relies onreaching the targeted audience with the

right communication means.

Previously, we had limited interaction

with the public, however that is now

changing as we expand our operations

and increasing the number of fuel sta-tions in the country. True we deal with

consumers but we had to design our

campaign quite differently from other

campaigns marketing consumer goods.

In fact, we organized a large media cam-

paign that involved the coordination with

international media corporations and with

the big companies with which we deal in

the international contracting field. The cam-

paign also included press advertisements,

road or bus posters and free vouchers to be

distributed to the public. In other words,

our campaign has a very broad scope tobring the desired goals to the public.

This campaign was launched through a

press conference, and then press adver-tisements were released. Advertisement

boards on buses and in the streets were

also distributed as well as leaflets and fly-

ers. It is worth mentioning here that thelogo of the Company was not radically

changed. We maintained some of the

same elements that existed in the old logosuch as the waves and some of the col-

ours. This shows that we are a Company

deeply rooted in our history and that wehave not forgotten where we came from.

If the red colour undoubtedly sym-bolizes energy, how does the choice of the blue colour symbolize the techno-logical strength of the Company?

We pride ourselves as being a company

at the leading edge of energy and in-

novation. The logoʼs blue colour alludesto the technological strides KNPC has

made and strives to achieve and continu-

ing tradition of reliable service to energy

consumers.

Lately, KNPC launched several projectsincluding the electronic control system of

the refineries, the electronic managementof the refinery, the electronic systems

used in different departments such as the

Information Service Departmentwhich offers endless services to

other departments, and the systems

currently adopted in the final imple-

mentation phase of the managementsystem of materials, maintenance, fi-

nance or accounting, and personnelʼs

affairs. It is indeed a huge project thatrelies on computers and on the full in-

terconnectivity of units. It also reducesthe use of papers and encourages the

use of the Internet and the e-mail.

Will the use of modern technologiesreduce the number of employees atthe Company?

On the contrary, by using modern tech-

nologies, we seek to upgrade the quality

and not the quantity. Thus, technological

Mohammad Al Hajeri

KNPC Public Relations Manager




22

means will not reduce the human re-sources of the company but will boost

their quality and performance. KNPC is

currently seeking to employ the nationalmanpower to increase the contribution

and efforts of the same in the oil sector.

In other words, the Company is making

further efforts to train and promote theskills of personnel in order to meet tech-

nological requirements. We are asking

for an 80% contribution of the nationalmanpower into the oil sector although this

industry is very hard and complex. Never-

theless, most Kuwaiti citizens are seeking

employment in the Company, probablybecause they are satisfied with the quality

of work in spite of the obstacles and hard

conditions of the oil sector such as the ex-treme weather conditions and the nature

of work in external facilities.

The new logo gives an impression of

comfort and ease; does the situation

of the Company confirm this impres-

sion?

Rightfully pointed, the new logo suggests

not only the energy KNPC provides con-sumers but also the energy in the hearts

of its people.

Job satisfaction and deep sense of pridein our achievements is prevalent in the

Company and there are many tangible

signs in this respect. For instance, we areproud to be exporting leaders and manag-

ers to other companies in the oil sector

since we have a high potential to transfer

qualified manpower.

KNPC draws its strength from its people.Therefore, it goes without saying that we

would not have reached that status with-

out the flowing motivation, loyalty, satis-faction and endless efforts of our person-

nel. It is noteworthy that most leaders in

the oil sector have made their first steps

in this Company, thereby giving us sup-port and momentum to make more efforts

towards developing skills.

What are the procedures currently

taken by the Company to unify the use

of the new logo?

As regards the logo and the importance of

unifying its use in KNPC, an ad hoc com-

mittee, chaired by the Manager of Public

Relations, was constituted. It is comprisedof members from the PR Department and

from all KNPC departments whether the

refineries or the public services. Unifyingthe use of the new logo involves many

aspects such as the printing issues, the

stationery, the Companyʼs buildings, the

refineries and the fuel stations. It is aimedat covering all the facilities of the Com-

pany since the Board of Directors and the

Committee have decided to assign to one

Department the mission of using this logoincluding the design of prints and others.

This came after the decision made by the

Chairman of the Board of Directors togive the PR Department the sole authority

to control every new use of the logo and,

in the context of unifying the new logo, tocontrol issues related to the stationery andprints of the Company. In fact, a decision

was taken to prevent other departments

from introducing changes to these printswithout the prior consent of the Commit-

tee. Besides, a unified numbering was

adopted for papers, letters, exter-

nal prints, interior memoranda,fax models and records of

meetings and no other de-

partment has the author-ity to change the logo.

Regarding visit cards,

they were printed anddesigned by many

departments. Thus,

some used to print

them with a longformat, others with a large for-

mat. Some used to put the logo on the

right, others on the left. However, now,there is only one pattern adopted for all

visit cards where only the name, address

and phone numbers change but their loca-tions on the card are the same.

The ad hoc committee recommended,among others, to unify the display model.

For instance, if the Local Marketing De-

partment offers a display to another De-

partment, it should bear the same designexcept the name and the phone numbers.

Furthermore, the Companyʼs site on the

Internet has the same pattern now. This isvery important to unify the public image

of the Company.

Working in this sector that includes all

forms of energy involves many risks. It

requires several safety and protection

measures for the employees, the facili-

ties or the public in general. Can you

give us an idea about the procedures

taken for the prevention of dangers?

Working in dangerous places requires the

elaboration of rules and regulations of

safety to protect the lives of employeesand the public we are dealing with, and

to protect the equipment and facilities we

are using, to avert any material losses.

Since its foundation, the Company givesa particular attention to this matter par-

ticularly in the past few years since it has




23

created safety, health and environmentaldepartments for KNPC or the oil sector

as a whole. For instance, in KNPC, we

have several safety regulations in ourrefineries. Besides, the management and

operation of fuel stations are as risky and

delicate as the facilities.

The employees of our refineries are well

trained to work under all circumstances

and to deal with any contingency inci-

dent that might take place. Nevertheless,working in fuel stations is harder since

it involves working with people and

car drivers of different nationalities andeducational backgrounds. This makes it

harder for us to control the safety issues

and requires further awareness-raising

campaigns by the Company to preventdangerous accidents in these stations.

Awareness-raising and safety campaignsare still prepared. Several campaigns havebeen prepared so far, the latest of all being

the safety campaign of fuel stations where

a funny personality named “Salama” (or

safety) was chosen to talk to the publicabout the risky behavior in fuel stations

and the means of safety protection. Thank

God, the campaign has had a good startin March and is still going on with efforts

aimed at developing it further.

Furthermore, we are working on two

fronts. The first is related to the techno-

logical and scientific means to developbetter safety and security conditions inoil facilities, while the second front is

related to continuous awareness-raising

campaigns about the safety of the person-nel and the public.

What are the projects related to the

technological development and that

provide further safety and security

measures?

There is no doubt that establishing these

projects, selecting the specifications of

equipment and materials and introduc-

ing or extracting the used materials areall subject to particular conditions. Even

if these equipments are more costly, the

Company spares no expenses to pay all

its dues in this respect.

Besides, the creation of fuel stations ac-

cording to particular specifications alwaystakes into account the safety measures

related to the facility or to its personnel,

along with other measures adopted bysafety departments to protect the safety

of employees in oil companies. Regard-

ing the used materials that are introducedand extracted, they are anti-sparks. Be-

sides, the used fuel and laboratory have

specifications that prevent sparkling or

dangers in the facility.

Will there be automated equipments

that can prevent, stop or control fires

or other incidents in fuel stations?

Some stations in KSA are using such

equipments but Kuwait has not yetadopted them. In new stations, we will

use the automatic gas system to re-

duce the dangers of fires until we re-

ceive the specialized equipments forfire prevention. However, the cur-

rent techniques available in fuel stations

are automatic equipments for the supplyof fuel and the reduction of potential dan-

gers in the station. Besides, manual fire

equipments and other means are used for

this purpose.

Can you give us an idea about the

media campaign launched by the PR

Department regarding safety in fuel

stations?

The media campaign has included sev-

eral activities and, thank God, it hasreceived very positive feedback from the

public. We have launched the campaignby placing advertisements in the daily

newspapers to inform people about safetyprocedures, as well as radio ads that have

reached the number of 210 within two

weeks and were broadcast as full spon-sors or co-sponsors of the most famous

programs. Besides, around 105 advertise-

ment boards were placed in streets within

two weeks, 25 ads on buses and thousandsof leaflets and posters were distributed to

the public in fuel stations. Different kinds

of brochures were also distributed in cin-emas according to the background of the

targeted public and internal prints were

handed out to raise awareness. Many

more ideas were also introduced such asthe distribution of a newsletter about safe-

ty, the organization of a contest including

many questions about safety measures

and several incentives to encourage peo-ple to read the leaflets related to safety.

Despite all the awareness-raising cam-paigns carried out by the Public Relations

Department and the Local Marketing

Department, the questionnaires carried

out so far have proved the necessity of increasing these campaigns. Therefore, it

was decided to create an ad hoc aware-

ness-raising committee that includes the

PR Department and several divisions suchas the Local Distribution Division and the

Safety Division. The committee is chaired

by the PR Manager and is composed of the Coordinator of Media & Prints in the

Department, the Senior Supervisor of Me-

dia, and the Safety Supervisor from the

Local Marketing Department, the Distri-bution Supervisor, and the Supervisor of

Technical Services. This Committee has

organized the latest media and awareness-

raising campaign and it is still making ef-forts in this respect.




24

KPC & K-Companies’ Oil

Spill Contingency Plan

The Kuwait Petroleum Corporation (KPC) & Subsidiaries oil

spill contingency plan has been developed to The International

Petroleum Industry Environmental Conservation Association

(IPIECA) guidelines.

By: Captain Awad Saeed

Manager Environment& Oil Spill Response

Kuwait Petroleum Corporation




25

adverse impact on KPC and Subsidiary

company business activities.

Purpose of the oil spillcontingency plan

The plan requires the KPC affiliated

companies (Subsidiaries) companies todevelop its own oil spill contingency

plans to activate a timely response

for Tier 1 & Tier 2 Marine and Land

oil spills. The plan shall be integrated

with the corporate (KPC) and KuwaitNational Oil spill Contingency Plans.

It also contains similar information for

a corporate role in coordinating support

response resources to Tier 2 & Tier 3 oilspills within Kuwait through The KPCIncident Management Team (IMT).

Scope of the plan

National Level (Kuwait): The

size, location and timing of a spill is

totally unpredictable. KPC affiliated

companies are at risk from a variety of

sources and activities ñ from on-landinterceptor operation, on shore and

sub-marine pipelines, vessel loading

and marine accidents off the coastlineinvolving KPC ships or cargoes. KPCand its affiliated companies may also

be required to respond to any marine

accident that threatens oil pollution of

the Kuwaiti shoreline, as defined in the

Kuwait National Marine Oil Spill Con-tingency Plan. Affiliated Companies

must have their own oil spill contin-

gency plans to cater for Tier 1 and tier

2 marine and land spills, integrated at

(Tier 2&3) with the KPC plan. In the

case of major spills (Tier 2/3) and/or

begin to impact outside of the site,

KPC will coordinate with the affectedcompany the spill response including

pooling off the oil sector combined

oil spill response resources and enrol

external organisation involvement. The

plan covers all aspects of assessing anoil spill, organising and mobilising an

appropriate response to the spill and

co-ordinating / liaising with the range

of external organisations which maybecome involved.

Authorities and responsibilities

Kuwait National Marine Oil SpillContingency Plan:

The Environment Public Author-

ity (EPA) is the co-ordinating agency

for Marine oil spill response. The EPAchairs the Kuwait National Marine Oil

Spill Contingency Plan established to

deal with oil pollution matters.

Kuwait Petroleum Corporation(KPC) and affiliated Companies are

member of the Kuwait Marine Oil Spill

Contingency Plan Committee. Kuwait

Oil Company (KOC) is the oil termi-

nals port authority.

Any spill at KPC affiliated Com-

pany Marine facilities, would be dealt

with by the KOC.

Captain Awad SaeedPast events in Kuwait and else-

where in the world have heightened

awareness of the risks and consequenc-

es of oil spill at sea, on the shoreline orinland. The possibility of an oil spill,

however remote, generates concern

within the company, local and national

authorities, government and media. If aspill has occurred all of these parties

generate an intense demand for infor-

mation and action and these pressures

will focus on KPC and the affiliated

company concerned. If the incident isnot handled correctly it can generate

complex technical, legal and public

relations problems, exposing the com-

pany to considerable cost and seriousdamage to its reputation both in Kuwaitand internationally.

Prevention remains the cheap-

est and best possible cure and, withinKPC affiliates, priority must be given

to maintaining and upgrading methods

of oil spill prevention. However, should

a spillage occur, a rapid and effective

response will be critical in minimisingthe resulting pollution and in demon-

strating KPCʼs commitment. When

such circumstances arise, the optimumorganisational structure and procedureswill depend very much on the nature

and severity of the incident. No two

incidents will be the same hence the

purpose of the plan is to provide in-

struction, guidance and informationon a tiered response appropriate to the

size, location and potential impact of

the spill. The objectives of the plan are

to minimise ecological damage and the




26

International Level (International

operations outside Kuwait)

Kuwait Petroleum International

(KPI): has its own oil spill contingen-

cy plan developed in accordance withrelevant national/ international oil spill

legislation. At the Tier 2 and Tier 3 lev-

els the site-specific oil spill contingen-cy plans are integrated with KPC Planthrough KPI Crisis Management Team

(CMT).

All KPI assets have to implement

the Oil Spill Contingency Plan, whichintegrates the operating units and site

plans with the respective countryʼs Na-

tional plan for spills within the Euro-

pean Union Thailand territorial waters.

The national competent authoritiesdefine the relevant oil spill legislative

requirements for operators. The mini-mum requirement would define KPI s̓

responsibility for Tier 1 spills and inter-facing with other bodies in the event of

Tier 2 or Tier 3 spill.

International Spill from vessels

incidents in countries where there is noKPI operating unit the KPI Marine Oil

Spill contingency plan shall be imple-

mented.

KOTC: For any oil spill, a planedShipboard Oil Pollution Emergency

Plan (SOPEP) is maintained as outlined

in the company's Shipboard Manage-

ment System "Vessel Response Plan &

Guidance on Emergency Procedures"in accordance with National and Inter-

national rules, regulations and guide-

lines integrated with KPC Oil SpillContingency Plan.

KPC International Marketing

(KPC Marine): has response plan/ co-

ordination procedure with the charted

vessels owners for National and Inter-national Oil Spill.

Training and exercises in imple-

mentation of the mitigation procedures

must be held at regular intervals. Simi-larly, exercises in the communications

procedure will also be necessary.




27

KOC/KNPC MARINE & LAND SPILLS PLAN EXERCISE 2005

DurationManagementSupervisorsOperator FrequencyNotesDateDate

ExerciseMarineLand

Notification

Exercise

1-2

hours••••••6 MonthlyTest communication

systems, check

availability of personnel,

evaluate travel time

to agreed site andarrangements can be

made

Dec.

2005•• KOC May &

Nov. 05

·• KNPC

Monthly aspart of MIPP

dr

Table Top

Exercise

2-8

hours•••• AnnualConsists of interactive

discussions of a

simulated scenario

among members of a

response team but do not

involve the mobilisation of

personnel or equipment

Dec.

2005•• KOC June

05

·• KNPC MAB-

Jul’05 MAA-

Aug’05

SHU-Sept

Equipment

Deployment

Exercise

4-8

hours••••••6 Monthly

combined

with

refresher training

Test the capability of a

local team to respond

to a Tier 1 or 2 type

spill. Might be run inconjunction with a

Tabletop or Incident

management exercises.

April 05

Sept.05

•• KOC May &

Nov. 05

·• KNPC MAB

Feb’ 05MAA

April’ 05 SHU-Jul

Incident

Management

Exercise

10-14

hours•• Annual

(with

outside

agencies

- EPA)

Demonstrates spill

response management

capabilities, integration of

roles of different parties,

focus on overall incident

management aspects.

Dec.

2005

KOC April &

Sep 05.

KNPC Dec. 05




28

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The interview follows

You have been bestowed with the

challenging yet prestigious task of

establishing KPC China Office. How did

you react when you were told that you had

been selected for this coveted position?

The decision entrusting me to manage

and establish KPCʼs Representative

office filled me with pride and honour. I

am extremely proud at the great faith the

Senior Management of the International

Marketing Sector has in me to manage

and establish the office. Opening the

office marks an important step towards

implementing KPCʼs expansion and

growth plans in China.

Yet I am aware of the huge challengesand responsibilities that lay ahead due

sheer size and magnitude of the Chinese

market and the fierce competition that

exist.

Currently, Kuwait does not feature

among the first ten countries that supply

China with oil and petroleum products.

Consequently, the Representative Office

shoulders the responsibility of boosting

Great journeys always start with a single yet significant step. March 2005 will

go down in the history of Kuwait Petroleum Corporation (KPC) as the month

the Corporation made a giant step towards realizing its strategic aspirations in

China, the rising economy power.

The International Marketing Sector at KPC inaugurated that month a

Representative Office headed by Mr. Haithem Al Ghais who brings to the new

post a vast and extensive experience in the field of marketing oil and petroleum

products.

The early foundation years are always viewed as the most difficult and

challenging, however, Mr. Al Ghais firmly believes that KPC is capable

of fulfilling aspirations and attaining big successes thanks to the business

attributes and expertise it possesses.

KPC China Representative Office :

First Pillar of Future Expansion Plans




29

, u y -

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9

current business dealings and reinforce

KPCʼs presence there. However,

I remain undaunted by the challenges

that we are bound to encounter and I am

determined to rise to the challenges and

to play an active role in strengthening

Kuwaitʼs presence in this highly

promising market.

Owing to the enormous investment

opportunities in the Chinese market,

notably in the oil industry, you find

that most international and Gulf oil

companies are competing to gain

a solid ground. Moreover, attaining

a stronghold in China features

prominently in the future plans of all

industry majors.

KPC considers China as lucrative

market and a promising outlet forKuwaiti investments. As you may

recall, in light of Chinaʼs economic and

investment importance His Highness the

Prime Minister, Sheikh Sabah Al Ahmad

Al Jaber Al Sabah made an official trip

last year of the Far East to seek joint

cooperation opportunities in the oil field

and explore other business avenues.

The trip has ushered in a bright

cooperation avenue between Kuwait and

the Republic of China. The inauguration

of the Representative Office was thefruition of that visit and the outcome

of the remarkable and strenuous efforts

made by the International Marketing

Sector at KPC. I honestly say that the

office as an extension of the integrated

business of the Marketing Sector a link

of a long and firm chain.

How do you describe your experience

thus far as the Manager of the Office?

In retrospect, the few months of handling

the office were fraught with challengesthat came hand in hand with remarkable

achievements.

I took over the responsibilities of the

office officially in February this year.

Initially, I had to equip the office in all

areas and secure the communication

means and ensure the smallest detail.

Since we were founding an office in

Beijing we had to start from scratch.

I would like to commend here the role of

the Information Technology Department

at the International Marketing Sector

which has sent a special envoy to

provide and install all communication

means and equipment. One the personal

front, I also had to arrange my livingconditions to settle in the country and

to organize some personal matters such

as registering my children in school

and other matters that entailed time and

effort.

As for the achievements, the office

succeeded during the first month

of operation building exceptional

business relations with several; Chinese

companies that KPC had previously

dealt with as well as new companies that

had not dealt with before. Visits havebeen made to six major refineries which

left a positive impact and reflected

KPCʼs keenness to develop relations in

the future.

Undoubtedly, these achievements

represent a good beginning and augur

well for the success of our plans at

creating a strong platform to embark on

bigger projects in the future.

Can you mention the key

challenges that you foreseein the future?

As I mentioned earlier, the

challenges are extremely huge

due to several factors. Most

importantly, KPC was not a key

player in the Chinese market for

a long time. Therefore, we need

first to get acquainted with the

nature of the market and grasp

the commercial dealings market

and then get adapted to them

which could take some time.We should also adapt ourselves

to this nature and consider the

commercial dealings of China

in order to get acquainted with

them, and this might take us a

considerable period of time.

The second challenge is the

language barrier which represents a

considerable obstacle. The Chinese

market was enclosed and in isolation for

a long time, that is why you find that very

few people speak English. Thus, I have

encountered some difficulties in making

direct discussions with oil companies

and had to rely on a Chinese translator

and had no option but to make all the

necessary correspondence and contactsin Chinese. To offset this challenge, I

decided to learn the Chinese language

and I already started to take language

courses. I am confident that this initiative

will win the admiration and respect of

the companies we will deal with. I learnt

from past experience while dealing with

other Asian companies that customers in

Asia respect those who try to learn their

language and respect their traditions and

customs.

The other challenging factor is thedifficultly in marketing the Kuwaiti

product to an extent. Kuwaiti crude oil is

characterized as heavy crude with high

percentage of sulphur compared to our

competitors. However, I am confident

that we will be able to overcome all

these challenges with a spectacular

success if Allah wills.

The official inauguration ceremony

of the Representative Office was

Ha i t he m A l G ha is




30

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30

one of the best organized and well

attended events in the history of KPC.

Moreover, it was broadly covered by

the international and local media.

I treated organizing the inauguration

reception as a personal challenge and

I left no stone unturned to ensure its

success. Organizing the ceremony

entailed intensive period of extensive

preparation. The venue and the guest listwere carefully made. All the hard work

and effort was abundantly rewarded and

its success surpassed all expectations.

The event was heavily attended and

enjoyed broad media coverage. Guest

lauded its meticulous organization and

preparation.

International and local media agencies

made sure that they sent representatives

to cover the event and they were in full

attendance. Several press and television

interviews were conducted with KPCʼsdelegation headed by Mr. Jamal Al

Nouri, Managing Director International

Marketing, and the news of our grand

opening featured prominently in all

economy reports and publications.

Industry analysts commended KPCʼs

decision to enter the Chinese markets.

The visit of the Kuwaiti delegation

and the inauguration of KPCʼs Office

captured the attention of the official

Chinese media. The Chinese Television

invited Mr. Jamal Al Nouri and Abdulatif

Al Houti – President Kuwait Petroleum

International Company, to take part in a

program called “The Dialogue” which is

aired in English and is considered one of

the most important economy programs

in China.

Kuwait T.V had an exceptionalcoverage of the reception interspersed

with interviews with Mr. Al Nouri,

Al Houti and Naser Al Mudhaf,

Executive Assistant Managing Director

Marketing.

Industry observors and economic

analysts believe that KPCʼs decision

to step into Chinese markets came

late especially that many other oil

companies from the Gulf and the

world have preceded the Corporation.

What is your opinion in this respect?

I believe that KPCʼs decision to enter

the Chinese market was a timely one.

It was thoroughly studied and carefully

deliberated. Our foray into the Chinese

markets coincides with the Chinese

Government decision to open its doors

wide for foreign investments. Until the

last few years ago, the Chinese markets

have been extremely isolated making it

very difficult for foreign investors to

penetrate and it took long years for any

investment to yield their any success.

For example, it took the Kingdom of

Saudi Arabia seven years of ceaseless

efforts to set up its projects in China and

create a customer base for Saudi oil and

oil products.

China is now witnessing an encouraging

economic boom and is providinginvestors with large and enormous

investment opportunities. China is

ranked second world oil consumer after

the United States of America and oil

experts expect that the demand on crude

oil and on oil products will remarkably

soar in the coming few years due to the

increasing foreign investments.

KPC has all the attributes that qualify it to

become a force to reckon with in the new

world economy structure. During our first

year in China, we are exploring all newopportunities, providing the head office

with periodic reports and information

related to the oil market and means of

increasing oil cooperation between the

two countries. All signs indicate that

Kuwait will acquire a large share in the

Chinese oil market but this requires some

time and effort. I can confidently say that

gaining ground in the Chinese markets is

an achievable goal.

Part of the China office reception




31

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31

China is the world's most populous

country, with a continuous culture

stretching back nearly 4,000 years.

After stagnating for two decades under

the rigid authoritarianism of early com-

munist rule, China now has the world's

fastest-growing economy and is un-

dergoing what has been described as a

second industrial revolution.

In the early 1980s it dismantled collec-

tive farming and allowed private enter-

prise again. Now it is one of the world's

top exporters and is attracting record

amounts of foreign investment.

Having gained admission to the World

Trade Organization, China will benefit

from increased access to foreign mar-

kets but in return will have to expose

itself to competition from abroad.

This is expected to spur private enter-

prise and hasten the demise of state-runindustries, but some Chinese fear it will

come at heavy social costs such as un-

employment and instability.

The fast-growing economy has fuelled

the demand for energy. China is the

largest oil consumer after the US,

and the world's biggest producer and

consumer of coal. There has been a

massive investment in hydro-power,

including the $25bn Three Gorges

Dam project.

Demand for oil in China continues to

surpass expectations and is maintaining

high oil prices, according to the Inter-

national Energy Agency. China has

become a decisive but unpredictable

player in world oil markets, because its

fast-growing manufacturing economy

is prone to sudden shifts in petroleum

demand.

Oil analyst Daniel Yergin, Chairman

of Cambridge Energy Research As-

sociates said "China will be the most

dynamic element in the oil market for

several years," He added that China

last passed Japan to become the world's

second-largest oil market, after the

U.S."

"Robust end-user demand and the

reappearance of tight primary stocks,

including localized product shortages,

suggest that second-quarter apparent

demand may again exceed expecta-

tions, despite seasonal maintenance

at several large refineries," the IEA

said.

China: The World’s Fastest Growing Economy




32

By: Dr. Fatemah Al Shatti

Coordinator Environment

Kuwait Petroleum Corporation

Wastes are materials that accompanied man over the past several decades and

have always been a source of pollution to the environment, regardless of the type

of wastes.

Wastes may be defined as undesirable

materials that may pollute the environ-

ment if we fail to treat it for our benefit

either at source or by adopting proper

scientific ways to dispose of it.

In 1970 the celebration of the Earth

Day began. Since that time, the friends

of the environment have increased and

there has been a great environmental

awareness, which led to a real desire

to put an end by taking steps to solve

the ever-increasing burden of garbage

which will help protects the natural

resources. This can be achieved by

KPC’s Green Office Project

awareness as to the method of

using raw materials.

2) Reuse of wastes: This may be in-

terpreted in the reuse of paper, but

printing on writing on the back side,or reusing plastic or glass bottles in

order to reduce wastes.

3) Recycling, which involves reusing

the wastes in order to produce other

products of a quality lower than that

of the original product.

4) Recovery, which means the using

waste recycling, one of the four basic

elements on which waste management

is built. These elements are commonly

known as the 4R, of which we must all

be aware:

1) Reduction, involves reducing the

consumption of raw materials,

which, in turn, reduces the produc-

tion of wastes, as follows:

a) Using raw materials that pro-

duce less waste

b) Reducing the use of raw materi-

als

c) Increasing environmental




33

Dr. Fatemah Al Shatti

(Table 1)

Quantity of solid domestic wastes expected to be generatedby the various residential areas and the areas of waste

dumping sites required every five years

Dump Area

(000 square meters)

Dumped quantities

(000 tonnes)YearsSer.

77545601995-19991

87851832004-20002

101559972005-20093

117169142010-20144

159493972015-20205

543332051Total

References:

1) Table 1 (Environmental Strategies for Solid Waste Management) by Dr. Mishaal Al-Sakkan, 1997.

2) United States Environment Protection Agency

3) Executive By-law of the Law No. 21 of 1995

any potentially harmful residues,

and even such residues are now

used in several advanced countries

in the building industry.

This process can result in a thermal en-

ergy, which can be exploited in indus-

trial operations or in the generation of

steam or electric power.

In the State of Kuwait, there is a lack of

accurate statistics about the size of the

losses from the recycling of wastes of

all kinds. This by itself is an indication

of the existence of a problem in a coun-

try where the per capita waste produc-

tion is 1.4 kg per day, and the landfill

locations is estimated on the bases of

the density of domestic solid wastes be-

ing 590 kg per cubic meter, and where

the average depth of waste dumping

locations can be as deep as 10 meters

(Table 1).

There are more than 15 landfills sites in

Kuwait, the largest being located in the

Jileeb area. Global studies on the sub-

ject confirm that waste quantities that

are sent every day to the landfills for

disposal without considering the stand-

ard method of waste disposal.

Municipal wastes can be very ben-

eficial if we start segregations from the

source this will help reduce the amount

of wastes, part of those waste materials

that can be used from municipal wastes,

such as paper, carton, plastic and glass

bottles and other materials, thereby re-

ducing wastes from source will protect

the Earth and the natural resources.

of thermal recovery technologies in

the disposal of solid wastes, hazard-

ous solid and fluid wastes, hospital

wastes, compost and other wastes

by burning them in special furnaces

designed with high specifications,

at temperatures of 1200 - 1400 de-

grees Celsius at which level the

burning is total and does not leave




34

at KPC is a civilized achievement that

shows our feeling of responsibility, and

our realization that we all work to serve

one Earth which will give us as much

as we give it. For this reason, the pro-

tection of the environment should be

regarded as a trust for which every one

of us is responsible.

Plastic containers will shortly be dis-

tributed to the offices. They will carry

the logo of KPC and the logo of the UN

Recycling.

A last word:

The success of the recycling project

KPC aims to protection and reduce the

overall environment and conserve re-

sources for our future generations, by

implanting the national and internation-

al laws and regulations in the region

and the entire world, and to apply the

4R rules in our operations. For this rea-son, the Green Office concept is not en-

tirely new, but illustrates the response

and interaction of the members of the

KPC family with this subject most se-

riously and with a high level of flex-

ibility. As we believe there is only one

Earth, Protect It Protect you.

II - Environmental Achievements

Protecting the environment is one of

our most important responsibilities,for each ton of paper that is sent to the

landfill site occupies more than 2.5 cu-

bic meters, while it is possible to bene-

fit from the paper and preserve the land

area, which by itself is a most precious

resource. To this end, KPC contributes

to the efforts of protecting the environ-

ment.

Through this experiment, KPC want to

familiarize society with the environ-

ment problems and methods of address-ing them by simple scientific meansand

modern technology.

Is this Project limited to office wastes

only?

This is a project for the protection of

the environment, and, as such, it is not

limited to the paper wastes generated

by offices, but extends to the waste ma-

terials of the cafeterias, such as juice

containers, biscuit cartons and waterbottles.

A container has been placed on every

department , near the photocopiers and

one near the cafeterias. Waste items are

collected by the cleaning company at

KPC for removing them to the place

where the re-cycling company will col-

lect them.




35

is reflected in the creation of the Public

Authority for the Environment whose

function is to protect the environment.

Nation with high standard of living,

productivity, industrial development,

and population growth tend to havemore municipal solid waste, if we donʼt

take care of our waste from the source

then we are going to have a big prob-

lem, therefore, as we are all part of this

problem we can also be part of the so-

lution.

The “Green Office”

Concept at KPC

Paper Recycling

Paper recycling is an operation that

yields high environmental and eco-

nomic returns, for, according to a study

by the US Environment Protection

Agency, the recycling of one ton of pa-

per saves 4100 kilowatt/hour of energy

and 28 cubic meters of water, in addi-

tion to the reduction of air pollutants by

24 kg.

Environmental security consists of the

requirements that are necessary for

the welfare, security and stability of

nations, all of which are targets con-

tinuously pursued by our government

in view of their importance to the na-

tion and the country. This importance

I - The Environment and Environ-

mental Security

There are many environmental defi-

nitions, one of which being the place

where man lives with other living crea-

tures.




36 The oil refining industry is considered as one of the most dangerous industries.

This is mainly attributed to its complex operations and its basic operating charac-

teristics. Petroleum refineries all over the world have played an important role in

many cases, in terms of local and global consumption. Even if operations are really

risky, a petroleum refinery that is well designed and well equipped with a protec-

tion system can operate safely.

Fire Protection in

Oil Refineries




37

Mohammad Al Tahous

The different ways of fire protection in-

clude all the steps taken by the fire-ex-

tinguishing department to control the

possibility of the fire outbreaks that get

out of control. Usually, the means of fire

protection used by the fire-extinguishing

department largely depend on inspection.

Some of the factors that help control fire

are architectural practices, implemen-

tation of standards, overall awareness

programs regarding fires and monitoring

fires.

Inspection is the legal means to find

and check the weak points and defects

that endanger human lives and prop-

erties due to fires. The enforcement

technique might be used when other

means seem inefficient. The education

technique is used to notify employees

and raise their awareness regarding fire

hazards and safety measures. There-

fore, predicting fires contribute to the

efforts of fire protection by hi-lighting

the defective aspects that may requirecorrective teaching efforts or proper

legislations.

Architectural planning is also viewed as

another efficient means of protection to

offset fire outbreaks. This helps reduce

the speed of fire when it breaks out.

The importance of fire protection was

not clearly comprehended until the extin-

guishing departments started compiling

meaningful information regarding the

causes and prevailing conditions of fire.

When the fire department started making

more efficient efforts to prevent fires and

boost the skills of the fire extinguishing

staff, information regarding defective as-

pects of current fire prevention came into

light.

The results of fire protection efforts

are now taking new forms every year.

Many statistics confirm the efficiency

of fire protection programs. In 1973,

the efforts made by the National Fire

Protection Association (NFPA) that

gives top priority to the reduction of

losses caused by fires, have gained

full public support when the Associa-

tion published the results of a compre-

hensive study it carried out regarding

fire problems in the United States. In-

deed, in its report entitled ìAmerica is

on fireî, the Association confirmed the

need for more fire protection activi-ties to reduce the opportunities of fire

outbreaks. The Association considered

that putting more stress on fire preven-

tion would have an impact on the con-

ceived impression about America and

about the losses she incurs due to fire

outbreaks. This attitude of the Associa-

tion justifies the statistics regarding the

fields where fire prevention activities

were undertaken.

By: Mohammad Al Tahous

Chief Fire Extinguisher

Kuwait National Petroleum Company




38

Oil Refineries

Just like the other industries, oil refiner-

ies go through three main stages:

1- Crude Oil

2- Crude Oil Treatment

3- Product

1- Crude Oil: For oil refineries, the

raw material used is the crude oil

that is delivered by the following

means:

a) Ships

b) Road Tankers

c) Pipelines

Crude Oil is delivered through the afore-

said means and is stored in reservoirs in-

side the oil refineries. The quantity of the

stored crude oil differs according to the

processing capacity of the refinery and

the supply schedule. Regardless of the

high reliability of supply, it is essential to

keep contingency stocks of oil to prevent

unnecessary shutoff of the unit.

Storing large quantities of crude oil

presents a great danger in any fire out-

break and can be hardly avoided. The

odds of a fire outbreak due to storing in-

crease when the crude oil is transferred

from the reservoirs to the processingunits. Usually, the crude oil is transport-

ed via pipelines and pumps, and every

means of transportation has its own fire

hazards. We will be describing in details

the different types of fire hazards related

to the transfer of crude oil and its means

of transportation.

2- Treatment of Crude Oil:

Treatment of Crude Oil refers to the main

activity of the oil refineries. The process-

ing of oil is carried out to produce dif-

ferent kinds of products and meet the

marketʼs needs. The main processing is

basically the distillation of crude oil. The

development of technology has brought

about several changes in the distillation

process as well as the other processes

in treating crude oil, in order to stream-

line the process and meet the marketʼs

needs.

The various processes for treating crude

oil are the following: Distillation, Cata-

lytic Cracking, Hydro-cracking, Reform-ing etc.

The crude oil processing unit usually in-

cludes a distillation tour, a furnace and

pumps to transfer oil to different com-

ponents of the unit. Crude oil processing

risks many fire hazards as different com-

ponents of crude oil are transferred at a

temperature exceeding their flash point

after cracking.

3- The Product:

Oil refineries produce several products

with different chemical and physical

characteristics, ranging from petroleum

gas to asphalt. Some refineries also have

a unit for extraction of aromatics that

produce gasoline, toluene and some oth-

er aromatic compounds.




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Below are some of the main products of

oil refineries:

a) Refinery gas (it is not usually sold

but is used for furnace ignition)

b) Liquefied petroleum gas

c) Naphtha

d) Gasolinee) High speed diesel

f) Kerosene

g) Fuel oil

h) Bitumen (Asphalt)

Every product listed above has its own

flash point ranging from -40∞C to -

200∞C. Due to their different processing

needs, many of the aforementioned proc-

esses are carried out at a temperature ex-

ceeding the flash point of the products.

Feed Side Hazard

There are several hazards related to the

storage and transfer of crude oil, and

many fire outbreaks occur due to ëfeed-

ingʼ in oil refineries. The main hazards

of the side feed equipment are attributed

to the large quantity of inflammable sub-

stances used such as:

- Storage Tanks

- Feed Pipelines

- Pumps

Petroleum reservoirs are usually safe

but poor maintenance or operational

errors can cause disasters, along with

natural disasters that can badly affect its

integrated performance. Furthermore,

pipelines are more or less similar to

petroleum reservoirs but with different

shapes, volumes, operating pressures and

temperatures. Most severe disasters that

occur in pipelines or petroleum reser-

voirs are attributed to poor maintenance,

operational errors, natural disasters and

deliberate sabotage.

The Prevention System:

For many decades, experience has proved

that careful and well planned operating

of any refinery ensures a high degree

of safety. The expression ìPrevention

should start from drawingî is a true state-

ment related to the design of oil refiner-

ies. However, whatever the case may be,

only well-designed equipment does not

necessarily ensure total safety of the re-

finery; operating procedures should also

be executed carefully and thoroughly.

The Protection System:

The following methods ensure the pro-

tection of feeding processes in oil refin-

eries:

- Design a good system for fire

control.

- Provide water sprinkler system to

prevent explosions.

- Provide ëfoam valvesʼ system.

- Provide a sealing fire preventionsystem for the rims of floating-roof

reservoirs.

- Provide a foam injection system.

- Provide a mobile fire extinguisher of

the powder/foam type.

- Provide long-range foam and water

guns.



y - S e p t e m b e r 2 0 0 5

40

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is to become a regional leader

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k Pc World 33 English

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