Issue No. 30 October - December 2004Issue No. 30 October - December 2004

KPC’s New Board of KPC’s New Board of Directors Directors

Nader Sultan Bids Farewell Nader Sultan Bids Farewell to the Oil Sectorto the Oil Sector Promising KPC Ventures in Promising KPC Ventures in China China

KPI Sells 75 Stations in KPI Sells 75 Stations in Britain Britain

Mina Abdullah Introduces Mina Abdullah Introduces Sulphur Extraction UnitsSulphur Extraction Units

Unifying Gulf Oil Marketing Unifying Gulf Oil Marketing Efforts Efforts

New Oil Training Strategies New Oil Training Strategies

Giant Initiatives to Update Giant Initiatives to Update Tanker Fleet Tanker Fleet

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The KPC World Editorial Team expresses its thanks and appreciation to all who contributed

editorial and information material and photograph to produce this issue of KPC world

P.O.Box: 26565 Safat - 13126 KuwaitTel.: (965) 2400960 - Fax: (965) 2407872

Website: www.kpc.com.kwE-mail: media@kpc.com.kw

Editorial TeamMohammad Al-ZamananMerwi Al-KhaldiKamal Al-KharsSheikha Al-TourahRawabi Al-BannaiDhary Al-JarallahAlia Al-Jasmi

KPI’s clever marketing strategy to increase profits and elevate its market standing.

Mina Abdullah Refinery introduces new sulphur extraction units in a quest to preserve the environment.

Houston Office celebrates 10th anniversary.

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Copy-editingTrident EWCEnglish WritingConsultants L.L.P.

Artwork & DesignFour FilmsPrinting Press Group

IN THIS ISSUE

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Editor-in-ChiefTalal Al Khalid Al SabahManaging Director Petroleum Services

KPC Mission

Kuwait Petroleum Corporation is a State owned and commercially oriented corporation. It is one of the leading oil and gas producing companies in the world and its activities are focused on petroleum exploration, reÞning, and marketing petrochemicals and transportation.Our mission is to manage and develop these integrated activities worldwide in the most effective manner so as to ensure the optimum exploitation of Kuwait�s hydrocarbon resources to achieve the maximum Þnancial return to our shareholders, the Government of the State of Kuwait and develop the capabilities of the national manpower.

88 2222KOTC’s ambitious plans to

update its tanker fleet to international standards.

KPC starts a new phase of change with the appointment of its new Board of Directors.

Sheikh Talal Al Khalid Al Sabah sheds light on KPC’s plans to gain a stronghold in China.

Nader Sultan announces his retirement and passes the baton to Hani Hussein. In his parting interview, Sultan talks about his career milestones, key memories, challenges he faced and aspirations for the oil sector.

KPC’s outstanding participation in the International OPEC Conference.

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Issue No. 30 October - December 2004Issue No. 30 October - December 2004

KPC’s New Board of KPC’s New Board of Directors Directors

Nader Sultan Bids Farewell Nader Sultan Bids Farewell to the Oil Sectorto the Oil Sector Promising KPC Ventures in Promising KPC Ventures in China China

KPI Sells 75 Stations in KPI Sells 75 Stations in Britain Britain

Mina Abdullah Introduces Mina Abdullah Introduces Sulphur Extraction UnitsSulphur Extraction Units

Unifying Gulf Oil Marketing Unifying Gulf Oil Marketing Efforts Efforts

New Oil Training Strategies New Oil Training Strategies

Giant Initiatives to Update Giant Initiatives to Update Tanker Fleet Tanker Fleet

OPEC has extended a message to calm down to the oil markets and decided to increase the ceiling of oil production by an increase of one million bpd, in the hope to reduce prices.

The new production ceiling effective from 1st of November 2004 will be 27 million bpd. OPEC�s decision was intended as a reassuring signal to the oil markets.

The Conference elected HE Sheikh Ahmad Al-Fahad Al-Ahmad Al-Sabah, Minister of Energy and Chairman of KPC�s Board of Directors, as President of the Conference for one year, with effect from January 1, 2005.

OPEC Chairman and Minister of Energy & Mineral Resources of Indonesia Mr. Burnomo Yusijia Ntoro said that �the message we want to send to the market is that prices should be reduced because we consider it as very high.� With raising the ceiling of its production, OPEC hopes to restore back the average price of �its basket� which includes seven-world crude oil from $ 38 to 30 for one barrel.

In an ofÞcial press statement following the meeting, OPEC announced that the decision was made based on a study on current oil market. The Conference noted that higher crude oil prices are a result of key factors which are the demand surge earlier in the year, especially in North America, China and Asian countries, geopolitical factors and concern about adequacy of spare capacity to meet possible supply disruptions, exacerbated by the signiÞcant impact of speculators and by tightness experienced in the downstream industry. It also observed that OPEC�s timely actions had been effective in ensuring that the market remains well supplied, resulting in commercial OECD stocks build-up to levels close to normal, thus succeeding in reversing the OPEC Reference Basket price trend down to levels around US$38/b.During their meeting OPEC members highlighted the importance of further strengthening effective co-operation with all

non-OPEC producing countries in the interests of maintaining stability in the oil market with reasonable prices acceptable to both producers and consumers.

Taking into consideration the market outlook

for 2005, with its concomitant uncertainties,

especially in the Þrst and second quarters,

the Conference further decided to convene

an Extraordinary Meeting in Cairo, Egypt,

on December 10, 2004 to review market

developments and take whatever measures are

deemed appropriate at that time.

Taking this decision in recognition of the

importance of maintaining oil market stability

for the beneÞt of the world economy, as well

as consumers and producers, the Conference

expressed its expectation that non-OPEC

oil producers will take concrete measures

to actively share with the Organization the

responsibility of maintaining price and market

stability in 2005 and thereafter.

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OPEC has extended a message to calm down

to the oil markets and decided to increase the ceiling of oil production by an increase of one

million bpd, in the hope to reduce prices.

OPEC Elects Al Fahad President, Increase production

by 1 million bpd

EDITORIAL

New Management, Promising Future

With every new issue of our magazine, my mind becomes congested with ideas competing for a place in the few lines that I am allowed for in this message, so numerous are the events and developments that take place between one issue and the next.

In this instance, perhaps the most notable development recently witnessed in the oil arena was the signiÞcant change that took place at the top echelon of KPC. I guess the only appropriate thing to say is to express our congratulations to all the new board members and our thanks and appreciation to the former members.

Because I am a KPC employee, my testimony will probably be somewhat biased. But biased or not, I feel I cannot conceal my happiness when I meet foreign persons and hear the words of praise and admiration they have for the Kuwaiti oil industry. I can see the pleasant surprise in their eyes as they talk about the experience gained by Kuwaiti oil ofÞcials and the success they achieved in raising our national oil industry to the highest international standards.

I believe that you, like me, will talk, with a certain degree of modesty, about the great expectations the Kuwaiti youth have with regard to further developing and raising the standards of this national industry, and about the increasing experience they are gaining , under the never-ending support from our political leadership who have assumed total commitment toward the oil sector.

KPC, as one of the world largest oil establishments, has succeeded in drawing a clear and well-deÞned strategy whose main objective is to enhance the standards of the Kuwaiti oil industry in all Þelds of activity : production, reÞning, facility and Þeld development, security and safety for both facilities and manpower and developing environmental protection standards and means.

To upgrade capability and enhance performance, KPC took a major step last month by effecting critical changes at its senior management level in preparation for the coming phase of further changes and developments and to enable it to face the challenges and high expectations for developing our oil industry.

Through these changes, KPC seeks to implement the ambitious programs associated with its long-term strategy, foremost among which is to increase crude production, upgrade reÞning capacity, develop security and safety means and enhance environment protection procedures. Armed with the strong belief that its greatest strengths lie in its manpower, one of KPC�s key objectives is to develop the capabilities and efÞciency of its employees by providing such training sessions as would develop their skills. Indeed, the project of renovating the Petroleum Training Centre is a major step in that direction.

While it strives to further its presence in the global markets, particularly in China, one of the most promising, the Corporation continues its efforts to strengthening its position as a leading operator in the international oil markets. To this end, KPC sold 75 fuel stations owned by its wholly owned subsidiary, KPI, in order to focus on higher yielding projects.

KPC has also begun a huge strategic project by signing an agreement to build seven new oil tankers for another subsidiary, Kuwait Oil Tankers Company, as part of a scheme to modernize its ßeet.

At the global level, Kuwait continues to play a positive role within the Organization of Petroleum Exporting Countries (OPEC), in order to maintain stability in the world oil markets. Kuwait continues to support this organization and strengthen its role and position in addressing changes in the oil markets and seeking to achieve a fair balance between the interests of both producers and consumers.

In conclusion, I would like to say that the changes that KPC has witnessed at its highest echelons, will enable it to face the tremendous challenges that stand in the way of realizing its ambitions and achieving its goals. I also call upon all employees of the oil sector to increase efforts to enhance our oil industry and enable it to keep abreast of the huge developments that this sector is witnessing at the world level.

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Talal Al-Khalid Al SabahManaging Director Petroleum Services

Editor -in-Chief

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Nawaf Al Sabah-Manager Washington OfÞce,

Waleed Al Hashash-Manager Naphtha Sales

Department, and Nawal Al Fuzai from the

Ministry of Energy.

It is worth noting that extensive preparations

for the event started a year ago when the

Public Relations Department undertook the

assignment. The team comprising Tariq Amin,

Jamal Al Houli and Abdullah Faleh, spared no

effort to ensure its success and extreme care

was exerted regarding the choice of venue,

invitee list, entertainment programme and

other details.

KPC held a grand reception party in honour

of participants in the OPEC Petroleum

Conference in Vienna last month. The event

took place in the historic Hofburg castle under

the auspices of Sheikh Ahmad Al Fahad Al

Sabah-Minister of Energy. He was deputised

by Ms. Seham Razzouqi former Managing

Director Finance, Administrative Affairs

and International Relations and Kuwait�s

Governor at OPEC.

Ms. Razzouqi delivered the keynote address

in which she welcomed all guests and

brushed on the escalating importance of the

oil industry and the vital role OPEC plans to

ensure market stability.

The reception was well attended by key

personalities from international, regional, and

gulf oil companies. It was also attended by

Kuwait�s Ambassador to Vienna Mr. Fouzi Al

Jassem. KPC�s delegation comprised Mr. Nader

Sultan-former Deputy Chairman & CEO,

Abbas Naqi-Undersecretary at the Ministry of

Energy, Dr. Mohammad Al Ramadan-EAMD

HSE and Decision Support, Ali Murad-

Manager Public Relations,Mohammad Al

Shatti-Manager Market Research, Sheikh

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KPC�S OUTSTANDING PARTICIPATION IN OPEC CONFERENCE

(From right) Dr. Mohammad Al Ramadan, Nader Sultan, Seham Razzouqi , Abas Naqi, Mohammed Shatti, Nawal Al Fuzai, Waleed Hashash, Sheikh Nawaf Al-Sabah and Ali Murad

Seham Razzouqi

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Abdulmalik Mohammad Al Gharabally Board Member

Iqbal Mohammad Al Ghanim Managing Director Administration

Bader Nasser Al Khashti Managing Director & Chairman

of KUFPEC

Ahmad Al Arbeed Managing Director Project Kuwait & Steering Role in Privatization,

Research & Development

Ministry of Energy Undersecretary Board Member

Representative from the Ministry of Finance

Board Member

Suheil Yousef Bu Qurais Managing Director Planning

& Finance

Sheikha Shatha Al Sabah Managing Director Training

Affairs

Abdulatif Abdullah Al Houti Managing Director

& Chairman KPC Holdings Aruba

Abdulhadi Marzouq Al Awadh Managing Director & Chairman

KGOC

The following Managing Directors have been selected:

Farouq Al Zanki Managing Director Exploration & Production & Chairman of KOC

Khalid Saleh Buhamra Board Member

Yahia Fahad Al-SumaitBoard Member

Sheikh Talal Al Khalid Managing Director Petroleum

Services

Hani Abdulaziz Hussein Chief Executive OfÞcer

A NEW BOARD FOR KPCAn Amiri decree was issued appointing the new KPC�s Board of Directors. The new Board consists of the following members:

Abdullah Hamad Al Roumi Managing Director Transportation

& Chairman KOTC

Saad Al Shuwaib Managing Director

Petrochemical Industries & Chairman PIC

Jamal Abdulkhaliq Al Nouri Managing Director International

Marketing

Sami Fahad Al Rusheid Managing Director ReÞning

& Local Marketing & Chairman KNPC

Sheikh Ahmad Fahad Al SabahMinister of Energy

& Chairman of KPC�s Board of Director

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An archive photo of Mr. Sultan during his tenure at KPI

Sultan took part in major deals and mergers. Seen

here with Ms. Seham Razzouqi (right) at the

sale of Santa Fe shares

You set all speculations at rest when you announced your retirement. Why did you choose to retire?

The Þrst reason is because life at the position of Deputy Chairman and CEO is Þlled with so much pressure and tension that you could say that each year in the job is equivalent to two years! So having been Deputy Chairman for 11 years it feels like I have been here for double that time, 22 years! So that takes me way past my retirement age. The second reason was that I needed change and I genuinely believed that KPC also needed a change at the CEO level. Positive change is very beneÞcial and with Hani taking over, the change will be a positive one so that was a very important aspect of my decision.

But the announcement was relatively early.

That was done on purpose, because I thought it was important that there is transparency and everyone knows of the pending change. There was a lot of uncertainty and rumours and this was an effective way of giving clarity to the situation and also allow people to make decisions in the next few months about their own futures.

What are your key memories as you reßect on your 33 years in KPC?

Well if I was asked to reßect on all my memories, I would Þll up the whole magazine. I recall a Chinese saying which says �old age is when you no longer have dreams you only have memories� and I hope I haven�t reached that stage yet. I think the main memories that I will take away are probably the memories of the major crises which we had to face over the last 33 years. I have to be grateful to the oil sector which has given me the chance to have such experiences.For instance, I recall in the early 70s when the oil boycott took place, and the Iranian revolution in the late 70s, which caused a huge spike in oil prices. I also recall the nationalization of the oil industry in Kuwait in the mid 70s, the collapse of the oil prices in the mid 80s, the invasion of Kuwait in 1990, the October build-up in 1994, and the war in 2004. All these many crises have a common feature which was the way we as Kuwaitis and as management worked as a team. I recall for instance a phone call I received during the month of August in the early 80s when I was the

only EAMD Marketing in Kuwait at that time, that there was a major explosion of the naptha tanks in our reÞneries. So in Marketing we had to mobilize a team quickly to put in place the urgent import of motor gasoline for Kuwait. All of these crises really brought out the best in the Kuwaiti talent.

During your long years in the oil sector what was your biggest gain?

The interesting aspect is that the oil sector has given me an opportunity for this very wide and varied experience. Where else could I have got an experience of working in marketing in London in the 70s and then in Kuwait, working in the Asian markets and the European markets, working as Supply Manager, EAMD Planning, and then taking part in what I call major acquisitions. Later, I was asked to take over the downstream operations in Europe and learned how one competes with international majors in winning customers. Then I was involved in major deals such as the sale of the Santa Fe shares, the restructuring of Santa Fe, the merger between Rhone-Poulenc and Hoechst. So I think I have to be grateful to the Kuwaiti oil industry because it really gave us the opportunity to have a very wide and rich experience in a variety of

activities. Through these transactions and activities, what I gained was experience and equally important I developed relationships which turned into friendships.

What advice would you give to the young Kuwaitis?

When I reßect upon my experience, the Þrst advice I would give is to recommend the oil sector in Kuwait as probably one of the best places to get a professional experience since oil plays such a huge role in the economy of Kuwait. It is the sector where I believe even young people can make a genuine contribution. The oil sector on the one hand can offer you a rich experience, competitive salaries but at the same time it allows one to make a difference. The second advice is to always push yourself to improve your knowledge and capabilities. I know that some people complain that their colleagues get promoted as a result of �wasta� but the best managers and executives I know in the oil sector, got their positions through merit, hard work, and developing their skills. The third is to treat everyone with the same respect that you would like them to treat you, I will talk about this more later. The Þnal advice is to remember you have a family and give them your priority. Your family gives you the strength and happiness you need to perform better.

With Sheikh Ahmad Al-Fahad at his farewell party

By: Sheikha Al Tourah

After the span of more than three decades in the oil sector, Nader Sultan announced his retirement of his position as the Deputy Chairman and Chief Executive Officer passing on the baton to his old friend and col-league Hani Abdulaziz Hussein to lead what he aptly described as the VLCC of KPC. In leaving Sultan left a huge vacuum that will be very dif-ficult to fill, and an unmatched work legacy for generations to come. His climb to the top rung was awe-inspiring. During his prolific career, Sultan steadily attained one career milestone after the other. He began his career in the early 70s at the Kuwait National Petroleum Company as anexecutive trainee and has held a series of positions of increasing respon-sibility, including Assistant Regional Sales Manager, Manager (Interna- tional Marketing), Sales Manager (West of Suez) and Supply Manager.He then joined KPC upon its inception as an Executive Assistant Man- aging Director for Worldwide Product sales, based in Kuwait, and was

responsible for the marketing of KPC’s crude oil and products in Europeand America. Then he became the President of Kuwait Petroleum Inter- national Limited (KPI) since its formation in July 1983, and is credited with establishing its strong foundation and elevating it to the status it has reached today. He played a major role during the invasion of Kuwait andafter the liberation he was designated as the Deputy Chairman & Man- aging Director – Planning & International Operations, and then he was appointed as Deputy Chairman & Chief Executive Officer.Admirably, Sultan had an inimitable work style and progressive thinking approach. What he will be most remembered for apart from his evident footprints in the oil sector in every realm is his down to earth nature and the respect in which he treated all who worked with him. In the following interview, Sultan reveals his most memorable memories and career highlights.

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with Sheikh Ahmad being there and that they will be able to support to each other, in their respective challenging roles.

What was the key objective that made you take on this high level position?

I took the position with an objective to use what I learned in KPI, in an international competitive environment, and apply those to KPC in Kuwait. KPC was formed and created on a very strong foundation. When Abdulrazzaq Mulla Hussein decided to leave, what he left was a very strong foundation that really helped me in building on it and to take it to another level. I think that will be for others to judge if we succeeded or not.

What I wanted to bring to the oil sector was Þrstly an external orientation. What I mean by that is to enable people here to look at the business not simply from their departmental foundation role but to look at its external role in terms of its customers and competitors so as to have an have external vision. Every department has customers whether they are external or internal and we also have competitors in the business. The Þrst thing we said was that we are not operating in a vacuum, we are operating in an international world where there are competitors and customers and you win customers on the expense of competitors. That external vision has to be there in the orientation.

The second thing we tried to achieve was how we can create within a national oil company a professional culture. I wanted to bring a professional culture because we as a state owned company had the challenge of working with a professional approach. So we had to consider implementing things such as performance targets and performance indicators to meet the challenge of competing with international oil companies. On a professional level what is it that motivates you?

I believe it is very important to have a vision and clarity of where you are going and to support that with a positive attitude. To me vision is where you have a goal three years down the road. You need to have a vision for the company and yourself. You then say I want to make small improvements versus where I am today. Once you have those small improvements, you can say I am making progress. One of the key motivations I had was to improve the work

experiences and the strategic thinking of the younger people that I had the privilege of coming in contact with. For instance, one way of challenging the young people was in the way I interacted with them in meetings, asking their views and questioning their reasoning.

What are the principles and guidelines that you�ve followed and have taken you to where you are today?

In addition to the points I made in your question about advice, one guideline is that you must always try to be positive and optimistic. Things can go really bad and you must have the ability remain positive. A second is that you have to be able to switch off to manage the stress. A third element is to have basic time management skills as it really helps in managing stress. What also helps here is regular exercise. So optimism, a positive attitude, stress management are important. One more element is setting a standard by which you treat people. I learnt very early that it is not the position that gets you respect. It is you as a person and how you treat others that gains you respect. If you want the best out of people, you have to treat them with respect. You have to invest your time in the people. It is not always easy.

What is your vision for KPC?

The vision for KPC has to be enacted by the new CEO and his new team. The way I deÞned vision earlier is where things are better in small ways in the future than they are today. I am conÞdent that in three years from now I will be able to look at the KPC that Hani has created and I will deÞnitely see improvements in many areas.

What do you wish for your successor?

Well most of all I wish for him and his family is that God will give them good health and happiness. I also wish for him that he gets the full support from H.E the Minister, from his management team and all his colleagues at KPC. The challenges that he will face are not small. You have to give Hani credit that his decision to accept this responsibility is a very courageous one. The position of the CEO comes with a lot of pressures, political and social. So it takes a courageous man to be prepared to carry that burden of responsibility, and Hani is such a man. So I wish for him and all my friends in KPC all the success and may God protect them.

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In an interview with

hit show 60 Minutes

During one of the key marketing meetings with an Indian delegation

With his long time friend and successor Hani Abdulaziz Hussein

In hindsight, when you recall your beginning in the oil sector, did you ever foresee that you one day will become the Deputy Chairman and CEO of the oil industry in Kuwait?

I would say that by the grace of God there were many elements of luck in my career and part of the luck was that many of the positions offered to me were actually refused by someone before me! When I Þrst joined KNPC in 1971 I was like any other young Kuwaiti not knowing what I really wanted but looking basically at the Þnancial package and KNPC offered me the chance of working in London in a very exciting area called international marketing dealing with the whole world. So for a young man that was a very exciting prospect and I must say I learned a lot in those early years. After that I requested to come back to Kuwait because I felt that I spent too much of my life outside of Kuwait in boarding school, university then working abroad. That coincided with my getting married so a new part of my life started then. Then as I progressed in the Company the main highlight was the formation of KPC in 1980. What is interesting is that the new set of EAMDs chosen for Marketing, were all very young compared to today�s team. The average ages were 30-32 so we had a major responsibility on our shoulders but thank God I can say that we all were able to mature in our jobs, and handle the responsibility.

What challenges did you face when you joined KPC?

When KPC was formed, we came from a comfortable environment at KNPC which was partially private and there was a strong commercial sense. Initially, we had some concerns that there will be many people from KOC and the Ministry of Oil joining us and whether they would blend well with the commercial culture and nature of those of us from KNPC. However, I think everyone believed that the creation of KPC was the right thing to do and it was very important for the State of Kuwait, because before KPC was formed you had a variety of activities in the oil sector following different strategies with no real interaction or synergy. So to create a new Corporation, KPC, as a State owned entity and to bring these activities under this umbrella created this unity for the Þrst time. It was the right decision and it also allowed people in our

different companies to develop and to take on the different management positions in KPC as such.

Becoming the President of KPI was a career milestone. Can you shed light on that phase of your career?

KPI in a sense was a dream assignment. Because we had the authority to act, it was a very challenging position, and I was allowed to create the team. I could choose and recruit the people I wanted and it was a very professional atmosphere away from the politics and that was a very enjoyable place to work.

KPI allowed us to create a very interesting and successful brand, which was the Q8 brand. The process of creating this brand was very exciting for us.

How did you come up with the interesting and ingenuous Q8 brand?

That was a very interesting story. We wanted a name which would have an indirect relationship to Kuwait and could be used internationally and not be necessarily very Arabic so we could market it across the world. We had already agreed that the logo should have some reference to the sea such as sails. All that was left was deciding on the name. Many names came up such as �Dana� which meant pearl in Arabic and in English was a name. Then we thought of the word �Falcon� but on the last day when we were supposed to Þnalise a name, some new names were proposed. Amongst the new names written on the paper given to us was �Q8�. When we went past it in the list of names and looked at it, the reaction that we all had was the same reaction, which was a small smile! We Þrst thought why are they putting �Q8�? What does it mean? But then when it clicked that it was an indirect way of saying �Kuwait�, that made us decide that was the name we wanted. We then asked them how they came up with this name and they replied that when Kuwait was under the threat of invasion in the early 60s, there was a programme on television on which somebody wore a T-Shirt which had �Q8� on it and they remembered that while trying to come up with our new brand name. So that was the history of how we chose Q8.

What was your most unforgettable memory of working in KPI?

I would probably say two memories stand out. The Þrst was in 1986. Two weeks after we launched the Q8 brand we were sued by a major oil company for brand impeachment and what ensued was a stressful but challenging three months of active court cases in different countries in Europe. Thank God we won the case, but it was a very interesting learning experience in a European environment. To have won the case against one of the major oil companies was a very important success to defend a new brand that we believed so much in. The second was in 1990, which was the invasion of Kuwait. As we had an established head ofÞce in London, we were able to help the Board of KPC regroup in London. And we then helped the executives from our sister companies in preparing their plans for their return, the Al Awda Project.

From establishing KPI, and weathering the critical period of the invasion of Kuwait where you had a major role in managing the operations of the Kuwaiti oil sector from London, you were approached to take on the challenging position of the Deputy Chairman & CEO. Was this daunting in any way?

When I was approached to take the position of Deputy Chairman & CEO, it was a very difÞcult decision to make and I consulted with all my colleagues as well as Hani. It was felt that at that time it was important for someone from the oil sector to take the position as the names being proposed were from outside the oil sector. DeÞnitely, what made it a difÞcult position was the fact that it is a high level job and the success of the job depended on the relationship with the Minister. I had the privilege of working with six Ministers. You have to respect in this position that every Minister has his own style and his own vision and you have to build a working relationship with each one. The Deputy Chairman & CEO�s role is to be that continuity between the professional side of the oil sector and to help the Minister and to gain his support to implement the vision and commercial aspects of KPC. That�s where you have the challenges to the extent that the Ministers change. I am hopeful that in the case of Hani there will be continuity in the position of the Minister,

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Sultan played a pivotal role in establishing a crisis

management centre and plan during the war to

liberate Iraq. Seen here at the Crisis Management

Centre.

The former Deputy Chairman & CEO represented KPC at several local and international venues.

By: Dhary Al Jarallah

Latest statistics place China as the second largest oil consumer in the world after the USA. Oil experts predict that the demand for crude oil and oil products will grow at an astounding rate during the next few years spurred by the huge increase in foreign investments in China after the government decided to open its markets. Reports indicate that China produced approximately 2.4 mbpd of crude oil during the Þrst half of 2004 and imported approximately 3 mbpd of crude plus petroleum products. Thus, China�s gross demand in the Þrst 6 months of this year was approximately 5.4 million barrels a day which exceeds Japan�s approximately 5 million bpd. Japan currently maintains the world�s second biggest economy and was regarded for a long time as the second petroleum consumer in the world after the USA which accounts for 20 million bpd, a quarter of the world demand.

China is considered as a most promising markets for KPC as can be seen from the great efforts made by the Corporation to strengthen its presence in this huge Asian economy. The Chinese markets also hold bountiful opportunities for Kuwaiti investments.

Recognizing the great economic and investment importance of the Chinese giant, His Highness the Prime Minister, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah recently paid an ofÞcial visit to China and the Far East to strengthen existing

cooperation in the oil sector and to explore potential additional cooperation prospects for the future

In an interview with KPC World magazine Sheikh Talal Al Khalid Al Sabah-Managing Director petroleum Services, afÞrmed the remarkable success of the visit of His Highness Sheikh Sabah Al Ahmad and the accompanying delegation in opening a new page of cooperation in the petroleum Þeld between Kuwait and the Asian countries, noting in this respect the great efforts made by the Minister of Energy Sheikh Ahmad Al Fahad and the accompanying petroleum specialists to open new horizons in petroleum investment with China, Japan, South Korea and Singapore.

With regard to the success of the endeavours in the Chinese market, Sheikh Talal said that the Minister of Energy, Sheikh Ahmad Al Fahad met the President of the Chinese State Development and Reform Committee, Minister Mackay in Beijing and discussed relations between the two countries, particularly in the Þeld of petroleum, expressing KPC�s willingness to invest in China, not only in the Þeld of crude oil supply, but in such other areas as oil reÞneries and petroleum products. �The meeting�, he said, �witnessed a discussion of Kuwaiti oil supplies to China and cooperation with Chinese companies in this Þeld.�

Sheikh Talal Al-Khaled added: �The visit to China provided a most convenient and timely

platform for discussing the possibility of establishing a joint standing committee headed by Minister Makay and the Kuwaiti Energy Minister, in order to carry on talks between both sides and achieve results that would optimize beneÞts for both countries�.

He also noted that as Kuwait seeks to open new markets for its petroleum products and to push investments in petroleum and related Þelds, China and other Asian countries constitute

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Al Khalid with some of the local press editors and Kuwaiti businessmen

Sheikh Talal Al Khalid Al Sabah

TALAL AL-KHALEDEMPHASISES

THE REMARKABLE SUCCESS OF

KPC�S EXPANSIONPLANS FOR CHINA

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KPC Directs its Attention to the Chinese Giant

TALAL AL-KHALED EMPHASISES THE REMARKABLE SUCCESS OF

KPC�S EXPANSION PLANS FOR CHINA

We have also looked into the possibility of forming a permanent committee, consisting of KPC and Chinese ofÞcials, to pursue discussions that would lead to better results. KPC is seeking to open new markets for its oil products to push forward investments in the oil and related Þelds. We have expressed to our Chinese counterpart Kuwait�s wish and readiness to invest in China, not only in the Þeld of crude oil supply, but also in the oil reÞneries and oil products industry. We also announced Kuwait�s readiness to participate in infrastructure projects with Chinese companies.

What subjects were discussed during the meetings with your Chinese counterpart?

Several issues were discussed during our meetings. We both believe in the necessity

of developing this relationship to beneÞt from mutual interests and implement all matters that will be mutually beneÞcial. A notable outcome of these meetings was the signing of an oil and gas cooperation agreement between the Government of the State of Kuwait and the Government of the Chinese Republic under which the two parties will encourage and promote cooperation between their respective national companies for provision of crude oil and petroleum products to the Chinese, in addition to working in production, explorations, transportation and logistical storage and facilitating cooperation in the exchange of information, and technical and technological expertise.

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a great market with tremendous investment opportunities. Sheikh Talal added that the Minister of Energy had issued instructions for the formation of a committee to consolidate the success of the visit; to follow up prospective projects, to study and evaluate and follow up the investment results and offers and to strengthen cooperation opportunities in the Asian countries visited.

In the following interview, Sheikh Talal Al Khalid highlights the results of the tour and KPC�s expansion plans in China

What is the outcome of the ofÞcial visit paid by H.E the Prime Minister, Sheikh Sabah Al-Ahmad to the Far East?

Sheikh Sabah�s visit has laid the cornerstone for serious relations with all Asian countries that the visit included and especially with China. Currently, China enjoys a strong international standing that qualiÞes it to become a major player in the new economic order. Another element, which makes China a very promising market, is the rapid growth

rate in its economy. The aim of our visit was to explore the possibilities of investment there, especially in the oil sector. Discussions held in China between Sheikh Sabah and the Chinese President focused on Kuwait�s quest to promote comprehensive development of bilateral relations in politics, commerce and economy and to invite Chinese companies to operate in Kuwait and the Gulf and take practical steps to achieve such development.

Why is the Chinese market that important?

China is the most populous country in the world and the second consumer of energy after the United States. It is also an oil and gas producer. However, since the early 90s, because of its increasing growth rate, China has been consuming a large part of its production and importing additional quantities of crude oil and petroleum products to meet its daily needs. It also relies on coal as a main source of energy.

The Chinese market is important to us, particularly in relation to crude oil products. According to studies, China will have the largest share in any future increase in global demand for crude oil. In 2003, China�s

consumption increased by half a million barrels a day. This high demand has encouraged many oil producing countries and oil majors to enter the Chinese markets and increase their share there.

China is also a large consumer of jet fuel. Additionally, there is strong demand for gasoil.In 2003, China consumed around 80 million metric tons of gas oil and imported 3 million metric tons. These quantities will double in the future as a result of increased use of gas oil in transport. We also expect an increase in demand for liqueÞed gas, which is an environmentally friendly product and is in compliance with the World Trade Organization speciÞcations to rely on cleaner sources of energy.

The International Marketing Sector succeeded in entering the Chinese market through the conclusion of contracts with global oil companies such as Shell and BP. What can you say about these agreements?

According to this new vision, the International Marketing Sector, under the leadership of the Minister of Energy, Sheikh Ahmad Al-Fahad Al-Sabah, has been seeking to seize the available opportunities and expand our market share in China. If economic growth in China continues as expected, consumption will increase to around 10 million barrels a day in the next decade, which will create a fertile ground for Kuwaiti oil investments. Such investment requires the provision of new and advanced mechanisms of cooperation between the two sides. It seems that this will be achieved as the result of the signing of a framework agreement between China and the Gulf Cooperation Council States, providing for the promotion of investments and the development of commercial, administrative and technical relations, which will allow the start of new and serious negotiations for the setting up of a free trade zone between China and the Gulf States in the future.

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Chinese Minister welcoming Kuwaiti delegation with Sheikh Ahmad Al-Fahad at a dinner banquet in China

Al-Khalid in an ofÞcial meeting

� Maintaining accounting records according to

international standards,

� Delivering Þnancial and management report-

ing,

� Reviewing operational and capital expendi-

tures,

� Ensuring compliance to governmental and

legal requirements in all Þnancial activities,

� Communicating with governmental and legal

authorities regarding Þnancial matters,

� Providing an effective Corporate Financial

Risk Management, and

� Providing special expertise in Tax Manage-

ment.

To realize this vision and fulÞl our mission,

several initiatives are necessary to achieve

substantial improvements, including detailed

recommendations for process optimization,

organizational restructuring & IT support. In

addition, a future oriented capability analysis

within our Finance Group was executed to

identify training areas.

What are the requirements to ensure the

success of this plan?

To ensure the fulÞlment of our vision and mis-

sion and to carry out all these initiatives, an

implementation plan was developed. This plan

describes the necessary tasks in detail and the

parties responsible and the timetable. These

initiatives will be accomplished over a period

of 3-4 years with the major activities scheduled

for completion in 2004-06.

The success of the implementation plan requires

the employees active involvement and commit-

ment to the change process individually and as

teams working together to improve the Þnance

function performance.

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á``«dÉŸG äÉ````≤«Ñ£àdG π````°†aCG ≥````«≤ëàd

In an initiative aiming to upgrade work practices

and procedures, KPC undertook a vital project

to restructure the corporate Þnance function and

develop a strategic plan for the coming years.

From March until July 2004, a project team

consisting of KPC Finance Group and Ac-

centure developed the plan entitled �Corporate

Finance Function Strategic Plan�.

With regards to the purpose of the strategic

plan, Ms. Seham Razzouqi former Managing

Director for Finance, Administration and In-

ternational Relations said it was both to �iden-

tify and to prioritize the most promising best

Þnance practices across the corporate Þnance

function at KPC, leading to optimal support

structures and optimal processes within the Fi-

nance Group, which will be an essential factor

for the success of KPC strategic direction.�

In the following interview Ms. Razzouqi sheds

light on the project and its objectives.

How was the strategic plan developed?

The plan was developed in four integrated work

streams:

� Strategic Repositioning: Review and develop

the corporate Þnance�s vision, mission, organi-

zational structure, and performance manage-

ment

� Process Optimization: Analyze and optimize

corporate Þnance functions based on an overall

KPC process model

� Competency Management: Evaluate skills &

capabilities and formulate future requirements

by using the existing competency based system

� IT Excellence: Examine the existing Þnance

IT application infrastructure and the necessary

future requirements together with the develop-

ment of a to-be IT landscape based on Oracle.

What was the vision statement of this initia-

tive?

Our vision statement is as follows:

We aspire towards being the strategic Business

Partner, the leading Financial Service Provider

as well as the acknowledged Guardian of cor-

porate Þnancial interests within KPC Group,

focusing on high performance by adding value

and delivering high quality work in a timely

manner.

The foundation for our success is world class

Þnancial expertise in combination with deep

business understanding and commitment to re-

spect for the individual, professionalism, team-

work, integrity, and customer satisfaction.

And the Mission Statement is the following:

As Business Partner, Financial Service Provid-

er, and Guardian of corporate Þnancial interests,

our purpose is to

� Proactively participate in decision making,

� Provide excellent Þnancial services for KPC

sectors & subsidiaries,

� Manage KPC�s Þnancial assets and risks ef-

Þciently,

� Set Þnancial guidelines and policies for KPC

Group, and

� Provide accurate and precise Þnancial infor-

mation ensuring high level of transparency.

We are consequently contributing to KPC

Group�s corporate goals by maximizing our

contribution to shareholder value, supporting

others achieving their contribution to share-

holder value, and developing best people.

What is the scope of activities of the Finance

Sector?

Our scope of activities is deÞned as:

� Supporting business decision making,

� Leading Þnancial planning,

� Managing KPC wide Þnancial performance,

in collaboration with the business units,

� Ensuring necessary funding sources and shape

KPC�s capital structure,

� Managing surplus funds and working capital

while ensuring liquidity,

KPC RESTRUCTURESeham Razzouqi

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CORPORATE FINANCE FUNCTION

The deal included other assets in the British

market, such as the diesel Þlling stations as well

as wholesale operations and the accompanying

logistic services including tanks, loading ports

and the Company headquarters in Staines.

Were any other KPI assets included in the

deal?

The deal was limited to the aforementioned and

did not include other KPI activities in the UK.

We will continue to operate the Q8 Aviation

fuel sales operations which serves different

UK airports: Heathrow, Gatwick, Stansted and

Manchester, the lubricating oils activity based

on the state of the art lubricant blending plant

in Leeds and the International Diesel Service

(IDS).

Some people have suggested that selling the

service stations in Britain might affect the

other KPI activities in Europe, what is your

response to that?

It is important to understand that selling our

retail stations in Britain is not indicative of a

decision to shrink our activities in Europe. On

the contrary, KPI continues to strengthen and

consolidate its presence in the other European

markets, where it is at par with other leading oil

companies. KPI is committed to providing cus-

tomers with high-quality products and to offer

the best services for its clients in these markets.

It is worth mentioning that KPGB was estab-

lished in 1986 when Kuwait Petroleum Cor-

poration, already one of the world�s largest

integrated oil companies, decided to enter the

British market. The company grew and con-

solidated its presence through organic growth

and the strategic acquisition of companies with

retail service stations such as Ultramar Golden

Eagle, Nafta and the Hays Petroleum Group.

The company strengthened its activity in the

direct wholesale market in the British market

through buying the activities of the BP Com-

pany in the centre and South of the UK.

The head ofÞce of KPGB is at Staines, Mid-

dlesex to the west of London. Its major distri-

bution facilities are Ross Chemical and Storage

Terminal in Grangemouth, Scotland and Kings

Lynn Terminal in Norfolk. The company has 8

storage locations with the Fuel Care trademark

to serve the direct company sales. The compa-

ny�s wholly owned distributors are strategically

located throughout the UK to provide a friendly,

efÞcient and knowledgeable service to local

customers. KPGB used to own, before the deal,

75 Þlling stations and supply 200 other stations

having the Q8 trademark and had 600 working

employees.

Our purpose built lubricants blending plant in

Leeds will continue to operate under the man-

agement of Kuwait Petroleum International

Lubricants.

It has been reported in the press that KPI

will market Kuwaiti products through its

retail stations in Europe. Can you tell us

something about this?

An agreement has been reached with Kuwait�s

Public Industrial Authority to launch a cam-

paign to market national industrial products in

Europe. Denmark will be the starting point and

then the campaign will include our other retail

stations throughout Europe.

The Public Industrial Authority will shoulder all

the expenses as well as ensure the fulÞlment of

any legal procedures and issue the needed cer-

tiÞcates to comply with Denmark�s requirement

for cooperation with the Kuwaiti plants.

A joint working team will be formed to discuss

and execute the plan of the marketing cam-

paign. The campaign aims to market Kuwaiti

products abroad and to upgrade the quality of

the locally manufactured products as well as

attracting direct foreign investments.

The campaign is considered as the Þrst step to-

wards implementing plans of the Export Devel-

opment Centre established by the Authority and

is supported with a budget of KD 1,5 million to

ensure its success.

Jamal Al-Nouri

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Following a strategy review of all its down-stream activities, Kuwait Petroleum Interna-tional has recently sold its UK retail service station network and direct fuel distribution services so as to concentrate on more proÞtable areas of business.

Kuwait Petroleum International (KPI) market-ing strategy focused on consolidating its busi-ness in lucrative markets and disposing of as-sets in which the company has scale to stand the challenges in markets such as UK market. The decision was based on strong recommendation of all studies conducted to focus on proÞtable markets and since KPI�s share in the UK mar-kets was small it was not considered as a major marker.

In pursuit of this strategy KPI decided to sell assets in its subsidiary company, Kuwait Petro-

leum Great Britain Ltd (KPGB), which includes

75 petrol stations. This move was supported by

the management of Kuwait Petroleum Corpora-

tion. Consultation house Ernst & Young acted

as exclusive Þnancial advisors to KPI in the

selling process.

To shed further light on the sale and its effect on

KPI�s standing in Great Britain in particular and

Europe in general, KPC World met Mr. Jamal

Al Nouri former KPI President and Chairman

of Aruba�s Board of Directors. He afÞrmed that

the company was prudent in selling the 75 sta-

tions and realized good proÞts from this deal.

What were the reasons behind selling KPGB?

The decision to sell our assets in the KPGB was

the outcome of extensive studies that concluded

with strong recommendations to focus on prof-

itable markets, which ensure steady proÞts for

the company. Since our assets in the British

market were small, it was not considered as

a major market for KPI. Thus we decided it

would be wise to sell our investments there.

Who bought KPGB�s shares in the British

market?

The deal was awarded to the private UK-based

company, Malthurst. which already owns and

runs 110 gas service stations. The company was

looking to enhance its market share in the Brit-

ish markets, and the deal will help Malthurst

boost its stake in the British retail market to 250

service stations.

To maintain Economic Status KPI Sells 75 stations in Britain

HANDSOME PROFITS ONUK ASSET SALES

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By Maryam Al-Ateeqi

Kuwait Oil Tankers Company (KOTC) has ush-

ered in the third millennium with an ambitious

project to update its ßeet in synergy with the

international marine speciÞcations and environ-

mental standards.

The unique project will ensure that all new

tankers will be compliant with all international

standards and will fulÞl KOTC�s objectives to

remain a regional leader.

KOTC has recently begun implementation of

the plan for the upgrading of its oil tanker ßeet

and replacing its single hull tankers by signing

contracts for the building of seven new tankers

of the latest speciÞcations with Daewoo and

Hyundai companies. According to the agree-

ments both companies will build 7 oil tankers

in total.

The Þrst contract with Daewoo covers the

building of one AFRAMEX oil tanker of

114,000 tons capacity, to carry oil products, and

two PANAMAX of 69,000 tons capacity each

to carry oil products.

Hyundai Company will design, build and hand

over four tankers to KOTC: two Very Large

Crude Carriers (VLCC) of 317000 tons capac-

ity and two Very Large Gas Carriers (VLGC)

of 82000 cubic meters capacity for carrying am-

monia and liqueÞed gas.

KOTC owns only two double-hulled tankers.

The standard of the company in this respect

is lower than that of other tanker owners in the

Middle East and around the world; an impor-

tant factor in forcing KPC to proceed with the

company plans to upgrade the ßeet. The signing

of the contracts is regarded as a major achieve-

ment and a positive progress in upgrading the

company ßeet. Replacing the old ships will, in

turn, open new horizons and pave the way for

a prosperous new future for the Oil Tankers

Company, increase the general efÞciency and

performance of the company, and strengthen

opportunities for competition on global mar-

kets.

Undeniable, the international oil transport in-

dustry is facing a great challenge in implement-

ing the stringent HSE standards protecting the

environment from pollution and oil leakage.

Because of the strict laws related to marine

environment protection, there is an increasing

demand for modern double hulled tankers,

which has kept the lease prices of tankers high

during the year.

The company is also facing many challenges.

The cost of building new tankers has risen to the

highest levels during the past ten years because

of the continuous increase in steel prices result-

ing from the global economic revival and the

huge demand in China for steel for its construc-

tion and manufacturing industries

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Abdullah Al-Roumi KOTC Chairman at the contract signing ceremony

KUWAIT OIL TANKERS COMPANY TOBUILDS 7 MODERN OIL TANKERS

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quantity of oil and pollutants in the wastewater

poured into the sea and automatically prevents

more than the permitted quantities to be dis-

charged. This is part of our plan to preserve the

environment.

As regards Þre precautions, Þre alarm systems

and Þre Þghting equipment have been installed

on the ships. Gas ships are maintained the most

in view of the increased risks with gas storage.

Smoking and lighters or even the use of wire-

less sets are strictly prohibited and equipment

that generate electric charge. To combat Þre,

small Þre extinguishers are not used for Þre

Þghting. There is a room of carbon dioxide cyl-

inders. In the event of a Þre breakout, the CO2

is released and covers the machine room and

other machinery and equipment.

Other improvements will be made in the safety

and security procedures. On 1st July, the ISPS

law was implemented. This law, enforced after

the events of September 11, require a ship to

have automated systems so that, for example,

in the event of an attack by pirates, an alarm

signal will be emitted to the ports, a service to

which the ship has subscribed. There are also a

number of guidance booklets printed for each

ship.

What is the total cost of the project?

Approximately, $560 million dollars.

Any Þnal word at the end of the interview?

First of all I would like to thank HE Sheikh Ah-

mad Al Fahad Al Sabah the Minister of Enetgy,

without his prompt approval this project would

have been further delayed and harmed the oil

sector and the State of Kuwait. He is a man of

integrity and took this decision based on the

general good and for the beneÞt of the State

of Kuwait. Kuwait without an advanced and

modern ßeet would not have been able to fully

realize its potential and utilize its oil wealth. I

also wish to thank Sheikh Salman Al Sabah for

his valuable contribution to ensure the success

of the project.

The importance of building the new tankers

may be summarized in the following:

� To obtain a strategic national cargo for the

State of Kuwait-Kuwait Petroleum Corpora-

tion.

� To replace the tonnage of �very old� and

single-hulled ships with modern double-

hulled ships.

� To achieve more support for the ßeet.

� To create and improve job opportunities for

Kuwaiti citizens.

� To prevent the loss of public funds to third

parties i.e. other countries.

� To achieve commercial beneÞts from the

rise in the leasing market.

� To achieve and preserve the good reputa-

tion of the company in the light of industrial

expansion and competition on the global

market.

Mahmoud Ghalloum Abdullah

Details of the new tankers

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Tanker Type Number Weight Company Delivery

Date Cost per tanker

VLCC 2 317.000 HHIHyundai

Korea

April 2006 September

2007

30.169.100

VLGC 2 58.000 HHI Hyundai

Korea

May 2007 January

2009

24.704.341

AFRAMAX (LR-2)

1 113.600 DSME DAEWOO

Korea

March 2008 20.631.000

PANAMAX(LR-4)

2 69.000 DSMEDAEWOO

Korea

June 2007 September

2007

18.463.250

It should be noted that KOTC was amongst

the Þrst to be awarded quality and safety cer-

tiÞcates, locally and internationally. The Fleet

Operations Department received the two Safety

Management and Management Quality CertiÞ-

cates in 1997 and the Green CertiÞcate from the

Netherlands in 1999.

Recently, the Fleet Operations Management

Department renewed the international safety

management certiÞcate, ISM-Code and updated

the ISO �Quality Management� CertiÞcate

9002:1996 according to the latest regulations

and the most strict requirements of ISO 9001:

2000 by the International Rating Organization

DNV. The KOTC liqueÞed gas cylinder bot-

tling plant was awarded the ISO Management

Quality CertiÞcate 9001:2000 in January of

this year.

With regard to the upgrading of the ßeet, KPC

World magazine met with Mr. Mahmoud Ghal-

loum Abdullah, Manager Fleet Engineering

and Projects Group who focused on the main

aspects of the project.

KPC�s Board of Directors has granted its ap-

proval to the upgrading of the Kuwait Oil Tank-

ers ßeet with the building of seven new oil tank-

ers. Could you throw any light on the reasons

why KOTC needs to renew its ßeet?

At a time when there is a rising international

trend to preserve the environment KOTC has

only two double hull tankers that comply to

international standards. Therefore, we are lag-

ging far behind from our counterparts both in

the world and regionally. This was a cause a

matter of concern considering the status KOTC

had enjoyed in the last decade was one of the 5

leading oil tanker companies in the world.

It became imperative update our ßeet and

build double hull tankers. After several stud-

ies, this issue was taken to the KPC Board and

we availed the necessary approvals. The new

tankers will be built according to the speciÞca-

tions of KPC and KOTC. The new tankers will

be state of the art, will have all the safety and

security features, and will be environmentally

friendly and have long durability as they are

built to last at least 20 to 25 years.

How many ships does the company own at

present?

Presently we have 22 tankers and two Bunker

Ships that carry crude in the Kuwaiti territorial

waters. Of the 22 tankers, 5 are gas carriers and

we have 8 double hull tankers but only two Al

Shaqaia and Al Salhia, built in 1998 are compli-

ant to all international laws.

What will happen to the single- hull ships cur-

rently used?

Upon completing 25 years in service, they will

be put out of service. Some will be put on the

scrap market. With time, it becomes impossible

to beneÞt from the leasing of these ships.

What beneÞts will the company reap if the ships

are sold on the scrap market?

There is a minimal beneÞt but that this depends

on the size of the ship and thus the quantity, as

well as the price, of steel at the time.

What are the safety and security methods cur-

rently used? Are there new methods that will be

applied in respect of the tankers?

We have been awarded safety and security

certiÞcates from international rating companies

who conduct periodic inspections of all matters

relating to safety and security which include

measurement of the quantity of black smoke

emitted by the ship and carry out regular main-

tenance to preserve security.

We have also purchased equipment for burning

waste on the ship. The equipment measures the

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two units are technologically advanced and enable further reductions to be made in the sulphur content of reÞnery products to meet the requirements of the company�s strategic plans to reduce environmental pollutants.

The reactors, regarded as the largest and heaviest in the world, were designed by the US Chevron Company and manufactured by the Japanese J.S.W. Company. They are made of vanadium and solid steel and together weigh around 2,500 tons.

The new technology allows sulphur to be ex-tracted from our oil products much more ef-Þciently and with less effort. It also increases the life of the catalysts inside the unit from the 11-12 months, as previously, to 15-16 months, which results in an expected increased pro-ductive capacity per unit of 18,000 bpd from 66,000 bpd to 84,000 bpd. The end result is reduced catalyst costs and a high-quality and value product.

�We faced many obstacles and hurdles in build-ing this project, but, Thank Allah, we overcame them all. The main obstacle was to transport the reactors from Shuaiba Port to the site and install them next to the reactors operating under high pressure and temperature.�

Each reactor unit weighs 1250 tons, is 60 me-ters high and 6 meters in diameter and was to be installed only 3 meters away from the operating units.

�We succeeded in performing the project thanks to good preparation by the Projects Department of the company, a thorough follow up of the work details by personnel at all employment levels and assistance from the LG and MAM-MOET companies who, together with the

personnel at the reÞnery, carried out risks as-sessment studies and made recommendations to reduce the risks and guarantee the success of the project.�

The LG Engineering and Building Company and MAMMOET Company worked together to transport and construct the two reactors. The largest crane in the world of the MSG type was brought for this purpose.

The main objectives of building this unit can be seen in the light of the strategic studies carried out by KPC with KNPC on future expectations of global market demand for low sulphur heavy fuel to preserve the environment, in application of the new environmental laws. For these rea-sons, we need to apply the new speciÞcations in respect of sulphur quantities in our products so they become environmentally friendly. The State of Kuwait will meet the demand of global markets for products free of environmental pol-lutants. Thus, we will achieve the strategy of the corporation and company at the same time.

Regarding the environmental aspect of this project, Kuwait has ratiÞed international trea-ties, including the Basel Convention and the Kyoto Agreement. Under these two agreements, signatories are bound to implement certain en-vironmental measures. To beneÞt from this new understanding, the State of Kuwait is closely following up these legislations, as well as all subsidairy companies operating in the Oil Sec-tor, including of course KNPC, which is com-mitted to them. In future, these laws will have a large impact both on the consumers of our products and us. �And since petroleum is the main source of income for Kuwait, KNPC has

adopted the environmental management system that covers all the international laws or those laid down by the Kuwaiti Environment Public Authority, which we call the environmental management system. This reveals the effects on the environment and sets the controls for curb-ing such effects as much as possible. And since the environmental management system is a very complex and sensitive subject, I hope to address it in a future meeting to throw more light on this system that is important to us and to our pre-cious environment� he concluded.

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Asaad Al-Saad

By Dhary Al Jarallah

The success of an oil reÞnery is linked to its ability to become technologically advanced and its abidance by international rules and regula-tions in force. The oil industry in particular has great inßuence on global economies and the en-vironment. It is no longer a national industry of a single country, but an integrated global industry in which the exporter relies on the consumer who is on the lookout for a new product that does not affect the environmental and economic interests. This is what ofÞcials in charge of the reÞneries business in the State of Kuwait have observed. They laid down strategic plans and programs to accompany these global develop-ments. The results are emerging now. In a few days, work on the development of two new sulphur extraction units at Mina Abdullah will be completed, using new advanced technol-ogy that will enable us to replace the assistant worker during operation. The total cost of this project is KD50m.

In an interview given to KPC World Magazine, Engineer Asaad Ahmed Al-Saad, General Man-ager of Mina Abdullah ReÞnery, spoke about the new sulphur extraction units, a unique and vital project in the region on the technological level, about the obstacles faced during the im-plementation of the project and the advantages of this technology and how it serves the future goals of the Kuwait oil industry.

Al-Saad said: �With regard to the historical development of Abdullah Port reÞnery, the reÞnery was set up by American Independ-ent Oil Company, AMINOIL in 1958. It was upgraded between 1962 and 1967 with new units for the extraction of hydrogen and sulphur from oil. In 1978, the company was acquired by Kuwait National Petroleum Company (KNPC), a subsidiary of KPC. The reÞnery was upgraded again between 1982 and 1988 with the addition of several advanced units, such as the hydrogen breaking unit, the hydrogen treatment unit and other sulphur extraction units for preserving the environment. Today, Abdullah Port reÞnery is

an integral part of the KNPC reÞning complex along with Al Ahmadi Port and Al Shuaiba reÞneries.

The main function of a reÞnery is to produce petroleum products such as gas, liqueÞed and jet plane gas used in the production of gasoline and kerosene which are both used as lighting and aircraft fuel, and the production of diesel used in trucks and public transport, as well as heavy fuel oil usually used in plants or power production plants and other petrochemical industries. Abdullah Port ReÞnery is the only reÞnery in the Middle East with a unit for producing petroleum coal which is used in the operation of plants and the production of energy in many countries. The reÞning capacity of the reÞnery is 270,000 barrels a day, covering its share of such products in the global markets, which amounts in general to 900,000,000 bar-rels a day.

Work on the sulphur extraction units project started 22 months ago, with commissioning of the units due two months from now.. The

MINA ABDULLAH ADD SULPHUREXTRACTION UNITS

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What role did you play in the organization of this major oil event hosted by KPC?

I was nominated as general coordinator of the different departments of the Corporation to make the necessary arrangements for a suc-cessful conference. I would like to praise the cooperation received from the different depart-ments and the team spirit that cleared all hurdles and enabled the organization to be completed in record time.

The team from the Market Research Depart-ment mobilised all efforts and worked hard to make the conference succeed. I would like to praise Khalad Al-Obaid, Abdullah Al-Shatti and Jaber Al-Hajji who played a major role in colleting data and preparing lectures during the conference sessions. I also thank Mrs. Maha Al-Ashmar for her key role in printing all the data at the required speed and quality.

When and why was the Marketing Managers Committee formed?

Since the Gulf region has large oil reserves and reÞning capacity and is therefore a vital ex-porter of various oil products to global markets, and in view of the importance of the oil sector in the GCC economies, this committee was set up in 1983 upon the recommendations of the oil ministers.

Accordingly, several annual meetings are held with GCC marketing leaders, ofÞcials and com-petent persons to achieve coordination, coop-eration and the exchange of experience in many Þelds, such as the markets on which the petro-leum products are put, the customers and the conclusion of contracts with them. The pricing formulas for the different petroleum products are also discussed with the aim of guaranteeing fair prices for both seller and purchaser as are the sales contracts between oil companies and purchasers.

Crude oil was added last year by the oil min-isters considering the importance of its being

included in the coordination SpeciÞc programs are drawn up to cope with the oil market devel-opments and factors, which take into account-the actual competition among companies in the Gulf region, in such manner as to protect the interests of each country.

What are the accomplishments of the com-mittee?

Over the years, the committee�s many accom-plishments include:

- An improvement in teamwork and establish-ing contacts at all levels in the GCC countries.

- Becoming acquainted with and studying the pricing formulas of the Gulf countries and achieving similarity between them.

- Exchanging information and giving attesta-tion about customers and any experiments with them.

- Exchanging information about future plans for reÞneries and production of petroleum and liqueÞed gas products for pre-coordination.

- Finding a common ground for understanding the different markets of all the products.

- Following up and coordinating changes in the speciÞcations of products.

- Exchanging experience in e-commerce and its possible use in the region.

- Achieving coordination among companies with regard to marketing crude oil and petro-leum products within the framework in a global marketplace,

- Exchanging views about any future plans for development of products, reÞneries, ports and other factors contributing to raising productive efÞciency.

Abdullah Al-Shatti

First analyst-Marketing Research Department

As I was new at the Corporation, it was my Þrst participation in a specialized oil conference of this kind. I was entrusted with preparing a short lecture on the volume of oil exports in the Arabian Gulf. I felt a little apprehensive but the feeling disappeared quickly after I attended the conference. I acquired considerable experi-ence from my participation in the conference. It gave me a comprehensive perspective on the oil industry and got me acquainted with the marketing ofÞcers with fellow Gulf companies. We exchanged experiences and viewpoints that were of beneÞt to me in my work.

Jaber Al-HajjiMarketing Research Department

My main role in the conference was to prepare and give a lecture on oil products and future expectations about the development of the Gulf oil products and exports industry. There is no doubt that I beneÞted very much from the conference. The nature of our work requires us to peruse all oil reports and information on a daily basis. How-ever, the additional insights presented at the conference ses-sions yielded more beneÞts. I became closely acquainted with the oil trends of the Gulf States and beneÞted from the in-depth seminars.

There was complete harmony among all the members. Clear objectives were set for making the conference a success. There was transpar-ency in dealing and full agreement on the importance of unifying the Gulf efforts to deal with international competition. The oil analyses reßected the actual state of affairs in the Gulf and global oil markets. We hope to retain this positive attitude that will surely enable us to face all challenges.

Abdulaziz Al-Dousari and Khalid Al-Obaid

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By Sheikha Al-Tourah

Dhary Al-Jarallah

Earlier this year, KPC hosted the 27th Gulf Cooperation Council National Petroleum and Gas Companies The meeting was attended by representatives of all the member states� na-tional companies. Lengthy discussion followed on from the many technical reports submitted by the companies, and a good deal of market-ing information and experience in coping with the seasonal developments and changes in the markets was exchanged.

In conclusion, the Marketing Managers Commitee adopted the following proposals.

1) To form teams specializing in the marketing of the different company exports, from crude oil down to petroleum products. Such teams will me made up of people with the relevant area of competence for each product to promote cooperation and integration and the exchange of information among companies in oil exports, and support them in negotiation with consum-ers. The teams will be authorized to make all necessary decisions and actions to achieve the interests of the companies.

2) To increase contact between the companies� marketing departments and exert greater

efforts to clear obstacles to per-formance and completion of the target sale and purchase opera-tions among the GCC states.

3) To exchange information in support of the GCC states� ap-praisal of the performance of medium traders and the extent of their abidance by contractual and Þnancial conditions.

4) To follow up of the develop-ments of the Indian and Chi-nese markets where there is

growing demand for crude oil and reÞned pe-troleum products and to submit reports before the end of the second, third and fourth quarters of the current year, taking all m e a s -ures to minimise excessive competition among companies.

At the close of the meeting, the participants expressed their deepest appreciation to Kuwait Petroleum Corporation for hosting the Commit-tee meeting and their warmest thanks and grati-tude to its delegation for their warm welcome, their hospitality and the excellent preparation for the meeting.

They declared that they had reaped immense beneÞt from the deliberations and the transpar-ency in the exchange of information and experi-ence, In particular, they expressed appreciation of the Committee�s presentation and analysis of the global crude oil and petroleum products markets and concluded by saying that the meet-ing would do much to promote cooperation among companies in the marketing sector.

To learn more about the Conference, KPC World magazine met with some of the KPC staff who contributed to its success. First we spoke to Mr. Abdul Aziz Al-Dousari, Market Research Department, who was an active member in the Conference Coordination Committee.

Maha Al-Ashmar

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UNIFYING EFFORTSOF GULF OIL COMPANIES

KPC�s Petroleum Training Centre is one of the key organizations concerned with developing the skills of oil sector employees. The Centre gives them the skills they need to perform their duties both efÞciently and effectively, thereby increasing their productivity. It is also a gateway for newcomers to this vital sector. The Centre�s premises have recently been upgraded and a new building added at a cost of KD 2.2 million. The Centre received three international quality certiÞcations within one year and provided training to nearly 11,000 participants last year.

In recognition of the importance of its role within the Oil Sector, KPC WORLD conducted a series of interviews with the Centre�s ofÞcials at its premises in Ahmadi in order to gain a better insight into the nature of their work, the new training programs and the plans for this coming year, following the start of its operations in August.

Riyadh Al-Yaqout, Executive Assistant Managing Director for Training stated the Centre�s mission as being to prepare, qualify and develop national manpower in order to build up a well-trained and qualiÞed work force that is capable of assuming responsibility for the work, improving standards and carrying out all the required works to a high level of efÞciency in all areas associated with the oil industry and its supporting activities.

Al-Yaqout said that since completion of the Centre�s renovation and construction of an additional building, Kuwait now has a world-class petroleum training centre. The training environment features state of the art technology,

software and training facilities and the capability to organize both specialized courses to qualify personnel and to improve the level of human resources in the oil sector in terms of performance, quality and quantity

Concerning the vision and strategic goals for training and development in the oil sector, Al-Yaqout said that it is represented by several points, foremost among which is the creation of a petroleum training centre to meet the training needs of KPC and its subsidiaries, putting in place modern uniform training and career development systems for the entire sector, achieving integration with other training and education bodies and activating their role in improving the training and development activities.

Technical Training

Al-Yaqout added that the aforesaid points have several underlying work points, mainly:

� Establishing communication with similar regional and international centres in order to

exchange experience and measurement for the purpose of developing the business.

� To provide basic training and development programs for all management and functional

levels,

� To develop the centre as a scientiÞc point of reference for information and data, a highly

regarded education and training institution recognized at the regional and global level

capable of partially Þnancing its operations on a purely commercial bases,

� To create an institution that provides a link between training and career development

objectives and manpower policies and plans, thereby Þlling the gap between the level of the

job and the level of the employee,

� The alignment of the training output with the needs of the oil sector, thereby increasing the

efÞciency and value of the national manpower in the eyes of the oil sector contractors.

Technical Training

The Technical Training Coordinator at the Centre, Bassem Al-Essa, is responsible for preparing both long and short-term training programs for Þeld operators. The programs focus on four major areas: engineering and maintenance, operations and operating, drilling and exploration, and security, safety and the environment. He said that the most recent course is for training secondary school graduates to work in the security and Þre Þghting sectors. He said that the Centre has petroleum training workshops that include rotating instruments

workshops, operations, machining and iron works and electricity and instrumentation, as well as a chemical laboratory. He added that one of the key features of technical training developed over the past two years is preparing the trainees for specialized courses that award internationally recognized certiÞcates, which in turn allow the trainee to obtain further international certiÞcates.

Al-Essa added that the Centre�s principal objective is to ensure a higher return on the training for the trainees. He noted that it is sometimes difÞcult to guarantee that trainees really beneÞt from the course because of the lack of means to measure a program�s success. However, he added that the future success of the programs stems from �our determination

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Riyadh Al-Yaqout

Al-Yaqout: Our mission

is to prepare, qualify

and develop our

national manpower

to be able to assume

responsibility for

this sector

Al-Essa: Our

objective is to

increase the return

on training and

maximize benefit

from the training

programs

PETROLEUM TRAINING CENTRE TAKES ON A NEW LOOK

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services in November 2003, and obtained ISO 14001/96 certiÞcation for environmental management and the ISO 18001/99 certiÞcate for vocational safety and health in May 2004. There is a periodic internal audit of the Centre�s work by a team of representatives of all Training Department sections and an external audit by international bodies every 6 months.Al-Qahtani emphasized that the three certiÞca-tions fall within the integrated management

framework, particularly because the Centre has certain training courses involving environmen-tally hazardous materials. The same applies in respect of the used tools. He went on to say that the Centre is in the process of issuing a manual for use by all the Centre�s employees contain-ing an explanation of and guidance with regard to these materials and the proper procedure that should be followed in the event of any emer-gency.

A KD 4 million Operating Budget

Nawaf Al-Qahtani said that the Centre�s

budget is divided into two parts. The operating

budget of KD4m is related to the conduct

and organization of the training courses and

programs while the capital budget whose

amount varies according to needs, is for capital

projects such as the recent expansion.

He stated that the Training Centre is Þnanced

by the oil companies according to the extent to

which each company beneÞts from its services

and the number of trainees participating in the

training programs.

On-going Development

At the end of this tour of the Centre, Riyad

Al-Yaqout emphasized that the development

process at the Centre is an on-going one. He

said that the Centre is now studying a project

for expenditure at the level of the service and

oil companies in order to identify their training

needs and requirements and how these can be

met by the Centre. The purpose was to identify

a quality performance standard. In order words,

the Centre continuously seeks certiÞcates of

excellence according to modern international

standards.

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to ensure that all participants acquire an added value in their respective Þelds of specialization�.

He went on to say that, pursuant to the KPC directives that contractor manpower should be taken care of and qualiÞed to work in the oil sector, this element has become a major focal point and that in the light of the plans to raise the proportion of Kuwaiti nationals employed with contractors to 25% of their manpower over the coming Þve years, there would be increased demand for training programs designed and implemented in coordination with KPC.

General Training

Ahmed Al-Saddah, General Training Coordinator at the Centre, said that the Section is responsible for all general training matters in addition to the work carried out by the Technical Training Section. He said that general training is concerned with training programs in administration, operations and self development, all of which enable trainees to perform their duties in a better way and at a lower cost. He said, for example, that the English training courses last 4 to 12 weeks. These programs are being re-structured in order to be more in line with work needs, whether ofÞce or technical work.

He said that the Section is responsible for supervising the computer training programs at the Centre, which have recently been updated through the main training centre. He said that the Centre�s website has been renovated to accommodate on line technical modules. The website is also used to receive applications from individuals who wish to participate in the various courses offered, thereby saving considerable time compared with the traditional procedures.

Work Mechanism

The Training Specialist at the Centre Fauzi Al Qassar told us that the work mechanism at the Centre starts in June of every year. The Training Centre�s objective in this process is to discover the requirements of the oil companies and provide the courses accordingly. A provisional plan is prepared on the basis of an analysis of the past plan and an appraisal of the program as a whole. This is then forwarded to the oil companies for their initial opinions and feedback. After studying their responses, training needs and determining the number of prospective trainees, the Centre prepares the training programs for the new year to meet all the companies� requirements. Finally, the plan is issued with all the dates, objectives and organization of the programs. The Centre also invites the oil companies to propose new elements to be added to the training programs in the light of new developments or future requirements.

Al-Qassar said that the Centre also receives applications from government ministries, the National Guard and the State Audit Bureau for training under certain programs. He added that the Centre is devising a mechanism to allow both the private and public sectors to participate in certain oil sector programs implemented by the Centre.

Al-Qassar said that the Centre has increased its capacity from 300 to 830 participants per week (a 250% increase) in response to increasing demand for manpower and human resource development. Following the recent expansion, the Centre now has 44 training class rooms equipped with state-of-the-art training technology and 15 computer labs.

The Centre organized 1,025 programs during the year 2003/2004 and served 10,699 trainees, compared with 566 programs and 5,363 trainees during the previous year. The Centre is expected to organize 1,600 programs during 2004/2005 serving 13,000 to 14,000 trainees.

General Services

The Superintendent of Administrative and General Services at the Centre, Mr. Nawaf Al-Qahtani, said that this Section provides all services to the Centre employees and trainees. These include building and equipment maintenance, training equipment maintenance, catering, cleaning and managing the Training Department�s budget.

He added that the section followed up the building of the new Centre, at a cost of KD 2.2 million. The building, which was handed over last December and commissioned last

February, is equipped with modern equipment and occupies an area of 5,660 square meters. It has 30 training class rooms, 20 ofÞces, and services facilities such as a car park for more than 750 cars.

ISO CertiÞcation

Al-Qahtani said that within one year, the Centre obtained three ISO certiÞcations in recognition of the Centre�s focus on providing quality services to the oil sector. It was awarded the ISO 9001/2000 quality certiÞcation for customer

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Al-Saddah: Our goal is to reduce the

time period of our programs... and we have updated our website to receive applications from

training candidates. Al-Qassar: We have upgraded the Centre’s capacity from 300 to 830 participants per week and increased

the number of classrooms to 44.

Hemisphere), Houston OfÞce. The ofÞce is

located in the very prestigious Williams Tower

in the middle of the Galleria area. Houston

was chosen since it is the centerpiece of the

proÞtable American oil industry supporting over

half the city�s two million jobs.

KPC WH Þrst made its appearance in New York in September 1982 in the well-known Rockefeller Plaza. It was decided to move the operations to Houston Texas, the hub of the United States oil industry, in 1994. The port of Galveston, where a vast amount of crude is discharged, is located nearby and many crude oil customers are located throughout Texas. This makes it suitable for upholding close commitments to our US customers and for dealing with the time difference with Kuwait.

The Houston OfÞce focuses on maintaining relations with US customers and seeks to recognize potential business opportunities. The ofÞce is close to the market and customers which is very useful for resolving operational and sales matters. Constant communication with KPC departments is essential and organizing reports pertaining to the US market and economy assists the operations of the departments within KPC. The Houston OfÞce continues to strive to be a successful afÞliate for KPC.

Bader Al NisfWorking in the US allows me to be exposed to the day-to-day updates and activities of the US market. Unlike the time while I was studying here, working involves a lot of added beneÞts such as getting to be more responsible. The fact that KPC-WH operating hours has no overlap with Kuwait headquarters makes it more difÞcult to convey messages both ways.

Tracy Kennedy Secretary

I have had great experiences working for KPC

(WH). I respect the great diversity and ongoing

changes at the ofÞce, which I feel has made me

grow stronger as a person and an employee. I

consider it a privilege to work with KPC and

always enjoy learning about the Kuwaiti culture

and the oil industry in general. I am sure that the

following years with KPC will be as rewarding

as the past years that I have been a member of

this team.

Sandy Dornak

Administrative & Financial Affairs

Celebrating the 10th anniversary of the KPC

WH ofÞce is an astonishing accomplishment for

KPC as well as for myself. I have been fortunate

to be a member of KPC WH since its inception

in 1994.

The knowledge and pleasurable experiences

I have gained throughout the years have been

very rewarding to me. I have been delighted to

greet and meet many KPC delegates from the

very different departments within KPC. I have

become more accustomed to the culture and

respect our similar but different ways of life.

I was also very fortunate to have been able to

meet and assist the dearly remembered Sheikha

Sheikha Al Sabah during her harsh times in

Houston. She was such an admirable person.

We truly miss her.

Throughout the past 10 years I have been able to

work with many managers and colleagues who

exhibited remarkable leadership and generosity. I

will always appreciate my time with KPC (WH)

and look forward to many more successful years

with such a reputable organization.

(From right) Sandy Dornak, Bader Al-Nisf, Tracy Kennedy and Mohammad Al-Hadlaq

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KPC HOUSTON

MARKS 10TH ANNIVERSARY

In afÞrmation of KPC�s successful international

marketing strategy and quest to consolidate

its presence in key oil markets, KPC Houston

OfÞce celebrated its 10th anniversary recently.

Despite the fact that the United States is not

a primary market for KPC, nevertheless the

management of the International Marketing

Sector at the Corporation felt it was important

to establish a presence in the world�s biggest

oil consumer and to closely monitor market

updates.

KPC WH ofÞce was Þrst established in 1982

in New York City as an afÞliate of KPC to

strengthen relation with American clients. Then

in 1994 the ofÞce was relocated to Houston,

Texas which is known as the world�s Oil

Capital, and where many companies reside next

to the rich oilÞelds of the US gulf coast. KPC

realized that having an ofÞce there enables it to

strengthen and establish relations with oil sector

players in north and South America especially

the former where oil consumption is the highest

in the world.

The ofÞce also monitors regulations, legal

amendments and government mandates related

to the oil industry to see how they could affect

KPC. In addition it also identiÞes marketing

opportunities to enable the Corporation to study

their feasibility and advantages.

In celebration of this occasion the KPC WH

ofÞce team express in their own words their

feelings on this historical milestone.

Mohammad Al Hadlaq

Houston OfÞce Manager

September 2004 marks the 10th anniversary

of Kuwait Petroleum Corporation (Western

By: Sheikha Al-Tourah

The Dickson House represents an integral part of Kuwait�s history and reßects age-old friendly ties with Great Britain and the close afÞnity

Kuwaiti people felt with Colonel Harold Dickson, the British Political Agent, and his wife Dame Violet Dickson or Um Saud as she was fondly called. Dame Violet loved Kuwait so much that she gave her son a Kuwaiti name.

The couple�s love and devotion to Kuwait has become almost legendary and their service to Kuwait and valuable contributions to its advancement are still remembered and appreciated. They developed and cultivated compassionate relations with Kuwaiti people. They were loved and respected by people because they treated them with respect and kindness, never looking down on their poverty stricken lives with disdain.

It is not known exactly when their house was built, but many believe it was built in the 1880s for the Al Asfour family. It was then used as a British Political Agency to house the successive Political Agents who were based in Kuwait.

When the Dicksons arrived the house was sadly in a very bad state of disrepair due to neglect and lack of maintenance and parts of the house were close to collapse. Old mud brick houses require special maintenance on a regular basis to withstand the harsh climate. To keep the house in good shape, it was important to scrape off the mud and lime plaster on the outside of the walls every Þve to six years. Since that had not been regularly done, the house needed major and immediate renovation work and so the couple hired a Kuwaiti-Persian master builder called Ahmed Abdulkhaleq Al Benna.

When the renovation work was Þnished the Dicksons Þlled the house with a wonderful array of paintings, Persian carpets, antiques, and family memorabilia. The family had links with India and other parts of the Arab world and there were a number of unique items such as two swords given to Colonel Dickson by the Þrst king of Saudi Arabia, Abdul Aziz Ibn Saud. The Dickson house became Dame Violet�s home for close to 60 years.

During the Dickson�s early years here, Kuwait suffered from political upheaval and desert raids from the Ikhwan who were in revolt against King Ibn Saud of Saudi Arabia. While Colonel Dickson was busy with the political negotiations at that time, Dame Violet set about her role as a

Dame Violet Dickson with her son Saud

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The Dickson House:Historical Symbol of Friendship

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of both companies in the drawing room of the Dickson House, witnessed by Colonel Dickson. Sadly the table used for the signing was lost when the house was looted by Iraqi troops many years later.In her book entitled �Dame Violet Dickson� author Claudia Farkas Al Rashoud writes about the prophetic dreams the late Colonel Dickson had which lead to the discovery of Burgan Þeld.

One particular event of the Dickson�s time here was to have huge consequences for the future of Kuwait. One night, Colonel Dickson had a vivid dream which led to the Þrst discovery of oil in Kuwait. He dreamed about a large sidr tree in the desert. Greatly troubled by his vision, he visited an old Bedouin woman in the desert known for her abilities in deciphering dreams. She listened, and then told him to advise the Superintendent of Kuwait Oil Company to move

his team and camp from the current location, Bahrah, to Burgan. Once they had relocated, they were to search for the sidr tree, and then drill for oil close by. The drilling team did as they had been instructed, and shortly afterwards, found oil close to the lone sidr tree in that area.

The Burgan Þeld was a major Þnd, and one of the largest in the region at that time. Despite the enormity of this event, however, it is more for their humanitarian actions and dedication to Kuwait that the Dickson are remembered. Ironically, oil wealth brought changes to Kuwait which the Dicksons found difÞcult to wholeheartedly support. Colonel Dickson died in 1959 at the age of 78, and his widow chose to stay in Kuwait in their seafront home. Violet Dickson continued to live there until ill health forced her into hospital in 1990. She was evacuated to Britain from the KOC hospital at Ahmadi during the Iraqi invasion and died not long after.

In 1998 the National Council for Culture, Arts and Letters (NCCAL) began the immense task of restoring the house which had been looted and abandoned during the invasion period, and not maintained for many years. NCCAL�s goal was to return it to how it had been during the time of the Dicksons. A full structural survey revealed that much of the building was in an extremely delicate and dangerous state. With the support and interest of HH the Amir, the Dickson House once more stands proudly looking out to sea with its fresh white walls and distinctive blue railings.

The internal courtyard of the house

The late Sheikh Abdullah Al Jaber Al Sabah with Dame Violet Dickson

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humanitarian. Numerous stories from Kuwait�s Þrst generation praise her willingness to extend a helping hand in any form, through Þnancial aid or giving food or shelter to the needy.

In his role as Political Agent Colonel Dickson was involved in the negotiations between the Amir at the time, Sheikh Ahmed Al Jaber Al Sabah and two rival oil companies seeking

Kuwait�s oil concession. The two companies joined together in 1934 to form Kuwait Oil Company and the resultant agreement was signed by Sheikh Ahmed and representatives

The Dickson House overlooking the Arabian Gulf

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KPC�s vision is to become a regional leader in HSE performance

Submit your releases, news items, ideas for articles,attendances at conferences and symposiums, reports onvisiting dignitaries and letters, to the Editor-in-Chief of

KPC World

P.O.Box: 26565 Safat - 13126 KuwaitTel.: (965) 2400960 - Fax: (965) 2407872

Website: www.kpc.com.kwE-mail: media@kpc.com.kw