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Issue No. 33, July - September 2005
Sheikh Talal Al Khalid Inaugurates
New Science & Knowledge Gateway
KPI at Par
with European
Competitors
Active Plans to
Combat Marine
& Land Oil Spill
KPC’s Green
Thump Project
New Life Style
Courses at
Petroleum
Training Centre
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KPC W RLD
Our Mission
Kuwait Petroleum Corporation (KPC) is a corporation of economic character,
run on a commercial basis and fully owned by the State. It is one of the worldʼs
major oil & gas companies and its activities are focused on petroleum exploration
and production refining, marketing, petrochemicals, and transport.
KPC s̓ mission is to manage and operate these integrated activities worldwide in
the most efficient and professional manner, in addition to growing shareholder
value whilst ensuring the optimum exploitation of Kuwait hydrocarbon
resources.
KPC has an important role in contributing to the support and development of
the Kuwaiti economy, developing national manpower, maintaining superior
commercial and technical expertise and proactively managing the environmental,
health and safety aspects related to KPCʼs businesses.
Sheikh Talal Al Khalid Al
Sabah, Managing Direc-
tor Petroleum Services,
inaugurates new oil & gas
discovery exhibits at the
Scientific Centre, thereby
ushering in new science
and knowledge horizons.
8In this Issue
Kuwait Petroleum International Company seeks,
through its new strategy, to boost its financial rev-
enues in order to be at par with its European com-
petitors and gain ground in the emerging markets
of India and China.
16The Petroleum Training Centre in-
troduces new life style courses that
help employees overcome various ail-
ments.
12
Editor in Chief
Talal Al Khalid Al Sabah
Managing Director
Petroleum Services
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Editorial Team
Media Relations Department
Artwork & Design
Khaled M. Mostafa
ALRIYADHI General Printing Est.
The KPC World Editorial Team expresses
its thanks and appreciation to all who
contributed photographs, editorial and
information material to produce this issue
of KPC World.
P.O.Box: 26565 Safat 13126 Kuwait
Tel.: (965) 2400960 - Fax: (965) 2407872
Website: www.kpc.com.kw
E-mail: [email protected]
2820KNPC Launches
its New Corporate
Identity.
A new contingency
plan set up by KPC
to offset the dan-
gers of marine oil
spills.
24 32Haithem Al Ghais,
KPC China Rep-
resentative Office
Manager asserts
that the Office is
able to rise up to
the challenges.
KPC’s Green Office
Project.
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The Oil Sector : Towards
Progress and Achievement
All over its areas of activity, the oil sector sustains a strong commitment to resume its diligent quest of
construction and development towards maximizing achievement and accomplishment. This commitment is
unanimously held by all staff members of Kuwait Petroleum Corporation (KPC) and its subsidiaries. That
is why the successful achievements are evidently on the right track, and the confident steps made towards
progress and development in all activities imposingly incarnates the staffʼs ardent devotion and unshakable
belief in KPCʼs goals.
Over the past few months, the Kuwaiti oil sector witnessed a remarkable development evidenced by con-
cluding many contracts for executing a number of mega projects including for instance the Calciner Coke
Contract. The value of that contract, signed by Kuwait Oil Company (KOC), amounts to $ 1.22 billions, to
update 10 crude oil gathering centres and a gas booster station. In addition, another prominent example to
cite is the contract signed by Kuwait National Petroleum Company (KNPC) with Hyundai Company, the
value of which amounts to KD 117 millions, to upgrade the liquefied gas plant located at Al Ahmadi area.
The qualitative leap witnessed by the Kuwaiti oil sector is further evidenced by the decision made by the
Supreme Petroleum Council to establish the Petroleum Services Company with a capital of around KD 100
million. This purpose of the forthcoming company includes responsibility for the security and safety of Al
Ahmadi area, together with responsibility over Al Ahmadi Hospital, as well as providing the oil sector with
consulting and human resource services as well as other services beneficial to Company, e.g. acquiring,
purchasing, lending, constructing, managing and operating the necessary real estates and assets. Further-more, the Supreme Council declared the establishment of the Oil Development Company chaired by the
Managing Director of Kuwait Project, Mr. Ahmad Al Arbeed, with a capital of approximately KD 300 mil-
lions. The Company was established with the vision of supervising the foreign companies working in the
development of oil fields, and will operate in the same line of business assumed by KOC, i.e. oil rigging,
manufacture, production, development and selling oil and oil derivatives, together with the acquiring all
projectsʼ intellectual property, managing research and development programs, and collecting the oil and oil
products funds due to the State by virtue of contracts on behalf of the Financial Affairs Department.
In terms of upgrading the oil sector personnel, the Petroleum Training Center is in pursuit of improving
the employeesʼ skills by providing them with well planned training. The Centre began to implement the
new training plan starting by two specialized sessions related to the psychological health and manners of
handling work pressures. This issue involved an interview with the Managing Director Training Affairs &Career Development, Sheikha Shatha Al Sabah, to shed light on such innovative trends.
This trend is streamlined by KNPCʼs launch of a new logo in line with its strategic orientations and variety
of interests. To shed light on this matter, KPC World had a special interview with Mr. Muhammad Al Hajiri,
Manager of Public Relations.
At the global level, KPC has inaugurated its representative office in China, representing a step ahead to-
wards enhancing KPCʼs business in the promising Chinese market.
Talal Al Khalid Al Sabah
Managing Director Petroleum Services
Editor-in-Chief
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Sheikh Ahmad Al-Fahad Al-
Ahmad Al-Sabah, President of
the Organization of Petroleum
Exporting Countries (OPEC)
and Minister of Energy affirmed
that OPEC is keen on keeping
oil price acceptable to help fur-
ther boost the world economic
growth and remove psychologi-
cal concerns in world market.
He said that a decision to hike
the cartel's oil production by
500,000 barrels per day (bpd)
as of July 1 and put into effect
a similar increase whenever
required reflects the belief that
conditions in the market have
not changed since a conference
in the Iranian city of Asfahan
when the decision was taken.
With this rise, OPEC official production
ceiling goes up from 27.5 million to 28
million bpd.
OPEC decided to lift its oil production
quotas in a move reflecting the organi-
zation's unease with soaring worldwide
energy demand. Having reviewed the
oil market situation and its immedi-
ate prospects, OPEC observed that the
market continues to be well supplied, as
a result of OPECʼs decision in March
2005 to increase its production ceilingto 27.5 mb/d, and that, consequently,
commercial crude and product stocks
have continued to build to comfortable
levels, around average in terms of days
of forward cover.
However, the Conference noted The
Sheikh Ahmad Al Fahad attributed the
rise of oil price to shortage of world
OPEC Raises Production to Calm
Surging Worldwide Demand
Sheikh Ahmad Al-Fahad Al-Sabah, President of
(OPEC)
oil refining capacity. He noted that thatworld crude oil prices remain high and
volatile as a result of concern about
a lack of effective global oil refining
capacity, in particular possible shortages
of middle distillates in key consuming
regions. Refineries, whilst already run-
ning at high utilization rates, are facing
difficulties in coping with strong distil-
late demand-growth.
He added that situation is being further
exacerbated by geopolitical develop-ments and increased speculation in the
oil futures markets. He said that politi-
cal developments last year also played
a role in the hike of oil price whereas
refinery is considered a major problem
this year especially that the United
States declared to reduce its derivatives
storage, which resulted in the increase of
the US oil by two dollars.
He also expressed hope to visit Beijingsoon to boost cooperation between
OPEC and China.
OPEC called on all parties concerned to
join efforts to maintain market stability,
with reasonable prices consistent with
robust economic growth, in particular in
the emerging economies of the develop-
ing world.
OPEC emphasized its particular concern
about the shortage of effective refiningcapacity required to meet future strong
demand growth, as a consequence of
under-investment in this sector, espe-
cially in conversion capacity, as well as
excessive regulation. OPEC, therefore,
repeated its call on industry and con-
sumer governments to urgently address
this challenge, which, if left unresolved,
will exacerbate oil price volatility.
s o u r c e :
A F P
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KPC Launch Calciner Coke Project Kuwait Petroleum Corporation (KPC)
and its subsidiary Kuwait National Petro-
leum Company (KNPC) signed a 20-year
contract with Petroleum Coke Industries
Company (PCIC) in consortium with
a group of leading Kuwaiti companies,
thereby signaling the start of the highly
ambitious “Calciner Coke” Plant. The
project is considered the oil sectorʼs first
major alliance with the private sector.
Mr. Hani Abdulaziz Hussein, KPCʼs
Chief Executive Officer signed thecontract on behalf of KPC while Mr.
Wael Jassem Al Sagar - Chairman of
the Board of Directors of the Petroleum
Coke Industries Company, signed on
behalf of his company.
The contract was also signed by Mr.
Jamal Al Nouri, Managing Director In-
ternational Marketing at KPC, and by
the Managing Director for Refining and
Local Marketing and Chairman of the
Board of Directors of KNPC , Mr. Sami
Al Rushaid.
The construction rights for the Kuwait
calciner plant have been awarded to
PCIC through a bid process adminis-
tered by KPC. The concession period is
for 22 years. KPC will provide the entire
raw material required for the calciner at
an indexed price during the concession
period. Upon completion, the Kuwait
calciner plant will have a capacity of
350,000 MTPA.
The project is developed and imple-
mented by Al-Mal and A H Al-Sagar
and also the company's foreign col-
laborator, Oxbow Carbon & Minerals,
LLC, USA. This project has long been
sought after by the calcining industry
for expansion due to its access to ex-
ceptional quality raw material (Green
Petroleum Coke) and also with the fast
expanding aluminum production in the
region.
Mr. Hani Abdulaziz Hussein said thatsigning the contract is the outcome of
a series of successful negotiations be-
tween both parties and as a confirmation
of KPCʼs belief in the importance of in-
volving the private sector and privatiz-
ing successful industries.
In implementation of its new strategic
directions, the Corporation started to
privatize vital projects such as the chlo-
rine salt plant, fuel stations and the oil
blending plant that is completely sold to
the private sector.
Mr. Hussein said that the future would
witness an expansion of the private sec-
torʼs role in the oil industry. The private
sector, he added would contribute to the
overall development of the sector and
ensure an added value for the national
economy.
First of its Kind
The calciner coke project is the first of
its kind in terms of its nature and size,
and is carried out through huge contri-
butions of the oil sector, thereby repre-
senting a model to follow in all privati-
zations.
The project will cost around KD 150
million and will cover an area of 265,000
square meters that was privatized by the
Public Authority of Industry in Al Sh-
uaiba industrial area.
Kuwait Industrial Bank has contributed60% of the investments of the project
whereas the Kuwaiti and foreign private
sectors have contributed the remaining
40%.
The calciner coke project ranks sec-
ond among other plants in the region in
terms of its production capacity, follow-
ing the number one Alba plant in Bah-
rain. However, it is considered as the
first plant in the world in terms of the
raw materials it possesses that will be
provided by KNPC for the coming 20years at prices defined by the contract.
The capacity of the Kuwaiti plant is es-
timated at 350,000 tons of calciner coal
and the capacity of the Bahraini plant is
of 450,000 tons.
One of its other features is that it will
produce steam along with calciner coal,
thereby helping to produce electrical
power with a capacity of around 52
Megawatts.
Events & Activities
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Kuwait National Petroleum Company
(KNPC) signed KD 117 million con-
tract with South Korean Hyundai En-
gineering to upgrade Liquefied Natural
Gas (LNG) plant in Mina Al Ahmadi
Refinery. This will modernise the plant
at Al-Ahmadi refinery by enhancing the
ethane recovery rate.
Mr. Sami Al Rushaid, Managing Direc-
tor for Refining and Local Marketing
and Chairman of the Board of Directors
of KNPC, said that the execution of the
project is expected to be finalized within
30 months.
Al Rushaid added that the project would
boost output from the current 55% per-
cent to 96%. The extracted quantities
will be used as a feedstock for the petro-
chemical industry.
With regards to the current unused
percentage of extracted gas Al Rushaid
said that this quantity will be used pres-
ently as fuel but it will be economically
more feasible if it is turned into a feed-
stock. He also mentioned that Hyundai
Company would be responsible for
the engineering works, the materials,
the construction and the installation
works.
It is noteworthy that Hyundai Company
is actively working on another major
project, which is building a pier for
KNPC worth KD 100 million.
The ethane will be sold to Petrochemi-
cals Industries Company to be used as
feedstock for the production of petro-
chemicals.
KNPC Sign KD 117 Million Project with Hyundai
Kuwait Oil Company (KOC) signed a
KD 360 million with the South Korean
Company SK Engineering and Con-
struction Company to upgrade and re-
locate underground process piping at 10
gathering centers and a booster station.
The contract has been described as the
biggest in KOCʼs history. Mr. Farouq
Al Zanki, Managing Director for Ex-
ploration and Production- Chairman
and Managing Director, Kuwait Oil
Company, said that this contract will set
KOC for the next twenty-years, provid-
ing a completely new infrastructure and
adding significantly to KOC production
capabilities. The continued efforts and
team cooperation will lead to a safer
work environment for KOC employees
and give them the confidence to reach
the target for increased production ca-
pacity. He also called for the timely
completion of the contract.
The project includes relocation of under-
ground oil & gas piping inside gathering
centers (1,2,9,10,11,17,19,20,22) and
booster station 170 and installation of
HP wet separator/LP wet separator, de-
salters and associated facilities. As well
as installing new water/oil separators and
condensate recovery units.
The aims of the monumental project
are: increasing KOC production ca-
pacity, improving the company health,
safety and environment practices,
enhancing the production associated
water-handling capabilities, decreasing
gas-flaring.
The Biggest in its History
KOC & Korean SK Sign KD 360 Million Deal
Sami Al RushaidManaging Director for Refin-
ing and Local Marketing and
Chairman of the Board of
Directors of KNPC
Farouq Al ZankiManaging Director for
Exploration and Production
Chairman and Managing
Director, Kuwait Oil Company
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Talal Khalid InauguratesNew Gateway To
Science & KnowledgeSheikh Talal Al-Khalid Al-Sabah, Managing Director Petroleum Services, on behalf of the Minister of
Energy Chairman KPC Board of Directors, Sheikh Ahmad Al-Fahad Al Sabah, inaugurated the newOil and Gas exhibits at the Exploration Hall at the Scientific Centre, thereby opening a new gateway for
knowledge and science.
The exhibits were true to life depiction of the oil industry and present visitors with a general yet
comprehensive overview of the oil industry. The new Discovery Hall includes interactive displays
that present a historical overview of oil formation, and a brief outline of the various aspects of the oil
industry such as: exploration, drilling, storage, refining, distributing, export and petrochemical industry.
Additionally, the exhibits underline the importance of security and safety in this vital industry.
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As mentioned, the new Discovery Hall
allows the visitor to gain an insight
into the nature of the oil industry
in an interesting and fun manner.
Visitors can learn how to drill an oil
well and how to load oil on tankers
through pipelines and valves. The
exhibits also include illustrations of
certain industrial processes such as
converting oil into tires and plastic
materials.
In the following interview, Sheikh
Talal Al-Khalid Al-Sabah sheds light
on this pioneering project.
Can you outline the background of
KPCʼs sponsorship of the new oil andgas exhibits at the Scientific Centre?
Guided by its educational and socialmission, KPC earnestly supports allscientific and cultural projects that seek
to cater for the needs of those who pursueknowledge and desire to increase theirself-education. In this context, the newdisplays provide valuable informationabout oil, which is the most importantdriver of the Kuwaiti economy.
KPC makes a deliberate effort toincrease awareness of the importanceof oil and a general understanding of the structure of the Kuwaiti oil industry,thereby highlighting the prominent role
played by the oil sector in our nationaleconomy.
The inauguration of the project was thefruition of an 18-month cooperationbetween KPC and the Scientific Centre.
The idea was that the exhibition hallwould serve as a pioneering and uniquescientific and educational project, andis another achievement standing to thecredit of Kuwait Petroleum Corporation.
To this end, KPC made available aspecialized team with considerableexperience in oil sector affairs to ensurean effective display of the oil industryprocesses. Special efforts were made toensure that the displays are understood
Sheikh Talal Al-Khalid Al-Sabah touring the
exhibit.
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by visitors of all age groups, startingwith kindergarten children.
Tremendous care was taken to ensurethat the displays would combineaccurate scientific information, factualpresentation and models that reflectthe way things are in the Kuwaitioil industry. Needless to say, KPCʼssponsorship of the new Discovery Hallhas built a strong bridge that promotescontacts between the Corporation andsociety, and furthers oil educationamong the young, thereby satisfyingtheir natural curiosity and quenchingtheir thirst for knowledge.
KPCʼs contribution to the educationprocess started with the publishing of the first childrenʼs story “The Storyof Naftan”, followed by “Yakhdoorand the Environment ”, within theframework of our plan to increase ourreleases of enlightening publicationsfor the benefit of children. Thesepublications are designed to appeal tothe childʼs brain and imagination, usingsimple classical Arabic and relying on
interesting examples that further thechildʼs curiosity.
What exhibits are displayed at thenew exploration hall?
The new exhibition hall contains interactivedisplays that induce visitor attention,starting with a historical overview of oil formation, then a brief outline of the various aspects of the oil industry:exploration, drilling, storage, refining,distributing, export and petro chemicalindustry, in addition to the concept of security and safety in this vital industry.
The exhibits are displayed over an
area of 56 square meters and include33 items that reflect the variousprocesses on the oil and gas industry.The development of the explorationhall was the result of extensive field
studies and numerous meetingsheld by The Scientific Centre witheducation specialists, administratorsand teachers in various stages of education, all of which indicated theimportance of providing such exhibitin Kuwait, given the fact that the oilindustry forms the prime economicresource, and in view of the difficultyof visiting the physical locations of these processes because of securityand safety considerations.
The exhibits were true to life depiction of the oil industry andpresent visitors with a general overview of the oil industry.
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The Scientific Centre
The Scientific Center is a gift to the nation, the
largest Aquarium built in the Middle East, by Kuwait
Foundation for the Advancement of Sciences. The
Scientific Center serves as a Center of excellence for
environmental education in the Arabian Gulf region.
Visitors can focus on the natural habitats of the sea,
with underground passages rich in marine life, natural
habitats of the coastal edges and the desert of the
Arabian Peninsula.
Discovery Place
Discovery Place is alive! Energy is all around us-
from the simple machines we use every day to the
petroleum products used in cars and airplanes. Young
and old alike can enjoy interactive exhibits including
the creation of electric circuits and the discovery of the
world of oil like a petroleum engineer. Discovery Place
enables visitors to experience the joy of learning the
secrets of petroleum and petrochemicals through these
hands-on exhibits.
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Steady Steps TowardDevelopment, Success
Kuwait Petroleum International (KPI) is stead-
ily standing on solid grounds by occupying a
prominent status within the international ener-
gy markets characterized by fierce competition,
especially in light of the rapid market changes
and volatility worldwide.
The unique status and image held by KPI in the
global market is enhanced by its outstanding
ability on continuous development, which quali-
fied it to be the international arm of Kuwait Pe-
troleum Corporation (KPC).
KPI:
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13
As such, it will launch for extending KPC's
influence in major International oil markets
including but not limited to the Europeanand Asian markets.
Accordingly, and given the tough compe-
tition among major players in the energy
market, KPI holds the view that survival is
for the fittest; a quality that makes it possi-
ble to stand the winds of change and rivalry
through keeping abreast with the latest de-
velopments with the utmost flexibility.
These facts were emphasized by Mr. Abdul-
latif Al-Houti, KPIʼs President. “Our fore-
most objective is to achieve better returns
on our investments through a determined
pursuit to shift our previous focus frommerely obtaining a market share to realiz-
ing profits comparable to those realized by
companies operating in the same regional
markets", he says. “To arrive at this high
end”, he continues, “it was mandatory to
conduct a periodical review of our overall
activity in order to ensure that the intended
activities are being carried out effectively
and that such activities arrive at their tar-
geted objectives. We are confident in our
ability to achieve our objectives through re-
liance on our outstanding financial systems
and resources, backed by the unparalleled
competence of our human resources."
Al-Houti added that he expects a wider
expansion of KPIʼs operations after its re-
structuring by means of operating outside
the European arid market, steering towards
such new promising marketplaces as the
Indian and Chinese markets.
KEY DRIVER TO SUCCESS
In its plan to achieve further growth and
success, KPI is guided by KPC's long term
strategic directions known as the "2020
Strategy.” Noteworthy, finalizing the strate-
gic directions constitutes one of Al-Houti's
most significant achievements during his
tenure as Executive Assistant Managing Di-
rector Strategic Planning at the Corporation
before taking over the reins of KPI.
For further elaboration to the above-men-
tioned Strategy, Al-Houti explained "In
the last quarter of the year 2002, KPC
embarked upon a comprehensive review of
its strategy, including those directions to be
maintained by KPI. In this respect, several
scenarios related to KPI were set and pre-
sented to the Supreme Petroleum Council
who approved them by the end of 2004.”
KPIʼs President went on to emphasize that
the Companyʼs long term strategy requires
the realization of returns comparable to
those realized by competitors within a five-
year time frame “due to the fact that the
present modest rate of return ranging from
3 to 4% does not reflect the size of our in-
vestment in Europe. Therefore, we need to
realize returns paralleling the size of our in-
vestment in light of the fact that the returns
realized by similar players range from 6 to
10 %", he added.
Al-Houti further clarified that the new strat-egy was built upon two elements, the most
important of which involves what is com-
monly known as the “Self Help" approach
according to which the company shall dis-
pense with external assistance. To exem-
plify, an in-house study was conducted with
a view to restructure the company-owned
fuel station networks, with two alternatives:
either the overall station networks existing
in every individual country will be consid-
ered within one framework, or each country
will be treated as an independent unit. "KPI
has approximately 4000 stations in Europe,
the majority of which, "3500", are locatedin Italy alone, while around 1500 stations
are located in the Netherlands, Belgium,
Luxemburg and France" he added.
These fuel stations are run in Europe based
on four management systems categorized
as follows:
- The COCO System by virtue of which the
company owns and manages the stations
- The CODO System, whereby the Com-
pany owns the assets without managing
them. Noteworthy, this system is also the
prevalent trend in the UAE.
- The DODO System, whereby the Com-
pany does not own the assets, whereas
the owner is committed to supply the
Company with contracts
- The Automat System, which involves
self-service, where the fuel is paid for by
a credit card.
Meanwhile, Al-Houti lauded the decision
taken by the KPC's Board of Directors in
September 2004 whereby the work of the
International Business Development sector
was transferred under the umbrella of KPI.
"This decision allowed the company to
extend its global area of activity, hence in-
crease its potentials to compete in new and
developing markets by seizing investment
opportunities in the promising markets
of East Asia, India and China. Following
the development of the 2020 Strategy, it
was logical to merge the operations of the
International Business Development Sec-
tor with KPI, together with enhancing and
developing KPI's existing resources and
know-how, given the homogeneous nature
of its functions.
OPERATIONAL RE-STRUCTURE
Al-Houti emphasized that KPI faces the
challenge of restructuring its operations.
Therefore, it was decided earlier this year
to consider the company's organizational
structure, hence the operational re-struc-
Abdullatif Al-Houti
KPIʼs President
s such, it will launch for extending KPC's
nfluence in major International oil markets
cenarios related to KPI were set and pre-
ented to the Supreme Petroleum Council
”
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ture. The previous organizational hierarchy
included a president and a vice president
in charge of operations. Under the new
structure, the Company Board is chaired
by a president assisted by three vice-presi-dents in charge of Operations, Planning
& Business Development, and Financial
and Administrative Affairs respectively.
The new structure will give momentum to
the Company's operation especially with
regard to strategic thinking and planning to
stand the challenges faced by our operations
worldwide.
With regards to the companyʼs intention to
dispose of certain assets in Europe, follow-
ing its decision to sell part of its assets in
Great Britain, Al-Houti clarified that it is
the company's policy to weigh the statusof achievement for its activities. “There-
fore, KPI is keen on developing any facility
achieving the planned objectives. Mean-
while, whenever an activity proves to be
unprofitable or that it does not achieve its
targeted returns, the company starts to re-
consider its status. On these grounds, having
found that our presence in Britain only al-
lows us a market share of 3 to 4%, which put
a question mark on the feasibility of operat-
ing such assets at all. When we studied the
situation, two alternatives were on offer: the
first involved the fact that to realize accept-
able returns we will have to multiply the sta-
tions number and size by 3 or 4 times. The
second was to exit the fuel station market
in Britain altogether. Based on this study,
and following a performance appraisal, it
was found that operational expansion will
by no means be financially feasible, hence
the decision to withdraw from the British
market in terms of both retail and wholesale
operations. Noteworthy, KPI owns no fuel
stations in Britain at present, but operates
on a lease basis (according to the DODO
System indicated above). However, we con-
cluded agreements with the station owners
to allow operation under KPI's Logo untilthe contracts expiry” he explained.
He added that KPI operates in 24 major
international airports, six to seven of which
are in Britain, in addition to other services
including the diesel lubricating oils with
full coverage all over Britain, as the Com-
pany owns a large diesel and lubricant oils
plant there.
In relation to locations in central Europe,
both important and large, Al-Houti em-
phasized the fact that studies are still in
progress to find out the optimum ways toenhance KPI's presence, improve opera-
tional performance, and expand its business
with a view to maximize returns, particu-
larly in Italy, Belgium, the Netherlands and
Luxemburg.
With regard to the situation in other parts
of the world such as Thailand, Al-Houti
commented that a study, focusing on KPI's
role, was also conducted on the Thai mar-
ket characterized with fierce competition,
where the situation was found to be similar
to that of Britain. To cope with such com-
petition, the Company will have to inject
enormous capital funds to achieve any re-
warding financial returns. Yet the potentials
of such rewarding returns were found to be
low, and it is unlikely that the investment
will achieve the targeted objectives. Based
on these findings, the decision to withdraw
was taken and the Company's retail and
wholesale assets in Thailand were sold, ex-
cept for those operating within airports.
BUSINESS EXPANSION IN ASIA
In relation to his recent visit to India, and in
response to a question concerning whether
the Company is planning to expand its oper-ations in the Indian sub-continent, Al-Houti
stated. "India represents an important mar-
ket for Kuwait, as a number of private oil
companies have recently emerged there. KPI
is working towards establishing partnership
relations with governmental and private en-
tities or opening dialogue with them with a
view to study investment opportunities that
would eventually lead to signing long-term
contracts to supply such entities with crude
oil. KPI also plans to establish a refinery, as
well as developing projects to build crude
oil storage depots. Al-Houti also pointed
out that, during the visit paid last year byHis Highness Prime Minister, Sheikh Sabah
Al-Ahmed Al-Jaber Al-Sabah, to East Asian
countries, a protocol of cooperation regard-
ing oil was signed with the Chinese govern-
ment by virtue of which companies of both
sides will be able to discuss prospects of co-
operation and exchange the know-how."
"The trend towards expanding the Compa-
ny's operations in India and China started
earlier in 1994-1995, as the Company iden-
tified those two countries as major growth
areas, representing a prospect intensified by
the fact that there have been huge increase
rates in crude oil consumption in these mar-kets, particularly since 2002. China has now
surpassed Japan as an oil consumer, with an
annual consumption growth rate of 6 -7 %"
Al-Houti continued.
“Frankly speaking, one must admit that
over the past years, KPC achieved no tan-
gible results on the Asian markets, which
can be attributed to several factors chief
among which is that these markets were
strictly state-controlled. However, since
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e p e m
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2002, these markets started to open up, and
negotiations were started with companies
in both countries. We are now emphasizing
the Company's ability to supply them with
crude oil under long-term contracts. Thereare many promising opportunities and good
prospects, which still require considerable
efforts to be exerted involving negotia-
tions, discussions, and meetings in order to
alleviate all sorts of pressure and arrive at
transparency regarding relevant issues." He
added
Al-Houti pointed out that having studied the
situation in the Asian market, KPC felt the
need for expansion at the Chinese arena, par-
ticularly the airport areas that are currently
developing at a remarkable rate, especially
with the approaching of Olympic Games ac-tions scheduled to be held in China by 2008.
"Chinese airports", he said, "are expected to
witness considerable congestion throughout
the period to come. We need to establish our
presence in one of the Chinese airport just a
launching base towards deployment in the
other airports in this high potential market.
KPC opened a representative office in China
this year, and KPI already supplies fuel to
Hong Kong Airport."
Other prospects include the South Korean
market, where Al-Houti pointed out that
KPI is seeking to enter into investments
with Korean companies in order to enhancethe Companyʼs position and create chances
in that country.
Based on the above, KPI is currently under-
taking the overall responsibility at the glo-
bal level for developing KPC's global activ-
ity, improving performance, and increasing
production, which will ultimately enhance
the Company's competitive edge within the
world energy market, hence higher returns
on its investments.
KPIAC :
World’s Best
Regional Jet Fuel Marketer
To be voted the best by the customers themselves is perhaps the greatest recognitionof a companyʼs success and undoubtedly the finest tribute to the people behind thebrand. Voted the Worldʼs Best Regional Jet Fuel Marketer in one of the industryʼsmost prestigious surveys and also winning the Best Overall award at the same time,
Q8 Aviation is celebrating and deservedly so.
The Armbrust Aviation Group (AAG) survey is undisputedly one of the industryʼsmost respected performance benchmarks. The survey asks airlines from around theworld to evaluate jet fuel marketers and airport operators on a range of criteria.With more than 70 airlines taking part in the 9th annual AAG survey, Q8 Aviationwas chosen as the World's Best Regional Jet Fuel Marketer. Not only that, but air-lines also voted Q8 Aviation ʻBest Overallʼ and when asked which companies theywould like to do more business with in 2005, Q8 Aviation was again the first choiceamongst the regional airlines!
Ross Baker, managing director Q8 Aviation, is understandably delighted with theaward. “It provides us with the best possible feedback regarding the strategies wehave been pursuing, the wholehearted commitment of our team within Q8 Aviation,the short lines of communication and our key focus on delivering the best possible
solutions for our customers,” he commented.
Survey respondents placed Q8 far ahead of other regional jet fuel marketers witha total score of 286 points. Across the Africa, Middle East and European regions,Q8 led the field in seven of 10 service categories including Most Innovative, BestStaff, Values Relationships, Best Informed, Best Organisational Structure and MostImproved!
The surveyʼs results clearly prove that Q8 Aviation is quickly gaining ground inpositioning itself as a leading jet fuel marketer. To be voted the ʻMost Improvedʼregional supplier for example, reflects very positively on Q8 Aviationʼs focus onconstantly improving its services.
ʻWe work incredibly hard all the time at improving the way we do business. I believethat Q8 Aviation is in great shape and very well placed for expansion. The fact that
so many airlines hope to give us more business this year is fantastic news,ʼ com-mented Nick Nigel, Q8 Aviation global sales manager.
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New Life Style Courses at Petroleum Training Centre
“Back to Nature” phenomenon has swept the world. In every part of the world, people are steering away
from traditional medicine and veering towards alternative therapy, discovering in the process astonishing
physical and physiological benefits of such approach.
Following the path sought by major oil companies keen on providing the training tools that guarantee
a sound work environment, KPCʼs Petroleum Training Centre has introduced a series of new training
programs focusing on the topics related to methods of self-treatment and alternative medicine.
The abovementioned training course topics introduce to participants the principles of a revolutionary yet
basic technique called “Transformational Breathing” and its healing power.
Through a gaining understanding of Transformational Breathing approach, participants will be able to
reduce physical pain by regulating their breathing. Few people know that Transformational Breathing is
a consistent art and science that can be taught to anyone interested in self-treatment through appropriate
training. Surprisingly, experts state that most people spend their lives unaware of the principles of good
breathing deemed as the most vital source of energy to the human body.
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Good Breathing Surveys covering thousandsof people and groups have shown that 80%of the surveysʼ sample participants sufferfrom restrictive breathing problems andthat the amount of air they breathe does notexceed an average of 20 to 30% of the realcapacity of their lungs, which in turn resultsin depriving human cells of the proper
amount of oxygen ultimately causing strainand fatigue. That is why, being unaware of good breathing principles and techniques,people lose the most important source of energy, thus deprive themselves of enjoyinga healthy life.
Efficientbreathinghasbecomeanecessityinthis modern and complicated era especiallyas time seems to have a strong hold on ourlives. Indeed, most of us are always in ahurry. It is also true that the air we breatheis not completely pure in the city lifecharacterized with roads and heavy traffic.Our hectic lifestyle is also considered as themain factor behind chronic psychologicalpressure and fatigue.
Sheikha Shatha Nasser Al Sabah,Managing Director Training Affairs& Career Development, asserts that thisnew training curriculum and methodologylaunched by the Petroleum Training Centreis consistent with the overall strategy of theTraining Sector with a view to provide thetraining programs and necessary tools tostrengthen the personnelʼs endurance amidwork pressures along with promoting theirwork performance.
These new programs teach participantsthe methods of transformational or deepbreathing and the methods of inhaling fullair into the lungs. Furthermore, participantsget acquainted with their own restrictivebreathing patterns, and therefore, they willbe able to improve such breathing patternsthrough this training technique.
Early in 2005, the Petroleum TrainingCentre introduced three training sessionsinto the program of psychological health oralternative medicine which received verypositive feedback from the trainees. Thus,
the Centre Management decided to add thesesessions to the 2005/2006 training plan.
Regarding this new training curriculum,KPC World had the following brief interview with the Managing Director forTraining Affairs & Career Development.
What are the goals behind thepsychological health training programs?
Caring for the psychological health of human resources is one of the modern
trends prevailing in global organizationsand corporations who have startedsetting up special programs, plans andlegislations related to the psychologicalhealth. Therefore, these programs wereorganized in the Petroleum Training Centreto introduce the personnel of the oil sectorto the principles of homeopathy, known
today as the “alternative medicine” andraise their awareness regarding diseasesand the methods of disease prevention byexploiting the sources of energy inherent inthe human body.
These programs also include informationabout the first aid concept and the wayof dealing with work injuries, whileintroducing participants to the soundnatural breathing mechanism and theway it is used to reduce psychologicalpressure and strain. This is supportedby awareness of the fundamentals of homeopathy or alternative medicine,together with exploring the zonesemotions and reactions, e.g. anger, in thehuman body, in addition to stimulatingcentres of energy. This is performedthrough a series of simple exercises usefulfor all trainees, particularly those who arevulnerable to psychological pressure andthose who cannot control their reactions.Through these new training programs,we can improve psychological healthto reach satisfactory and stable results.In order to execute these programs, theCentre has cooperated with ResonanceCompany, and the courses are delivered
by Dr. Hanaʼ Shams.
How did the trained staff respondto these new training programs, and
how did such training reflect on their
efficiency and success?
So far, five training sessions related to thepsychological health programs were held.The turnover of employees in general washigh as seen below:
1) The training program entitled“Homeopathy for EmergencyConditions and First Aid (Arabic)”held from 16 to 17 January 2005, wasattended by 13 participants and the rateof audience reached 65%.
2) The training program entitled “Know
Yourself and Breath your Stress Out – Females” held from 14 to 16 March2005, was attended by 12 participantsand the rate of audience was 80%.
Sheikha Shatha Nasser Al Sabah
Managing Director Training Affairs &
Career Development
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How did you discover Homeopathy
and alternative medicine?
I was very lucky to join a group of
people here in Cairo (foreigners and
Egyptians) who had an agreement with
a British university in London to send
us a homeopath specialist every month
to teach us for a week and to see cases.
This new science captured my interest
and after a long journey of studying
and observing clinical cases, I got my
5-year certificate in homeopathy from
London International College of Ho-
meopathy-London UK. Homeopaths
generally do not need a medical back-
ground. However it is very helpful and
many doctors allover the worlds are ho-
meopaths as well.
What is Homeopathy and its His-
tory?
Homeopathy is a complete system of
medicine founded by Samuel Hahn-
nemann (1755-1843). Hannemann was
a German Physician who gave up on
practicing medicine as they were using
Alchemical Breathing:
3) The training program entitled “KnowYourself and Breath Your Stress Out – Females (Arabic)” held from 28 to30 March 2005, was attended by 18participants and the rate of audiencereached 60%.
4) The training program entitled“Transformational Breathing – Males(Arabic)” held from 10 to 12 April2005, was attended by 21 participantsand the rate of audience reached 90%.
5) The training program entitled“Transformational Breathing – Females
(Arabic)” held from 24/4/2005 to 26/4/2005. The number of participants was20 and the rate of audience 80%.
This clearly reveals a positive responseby the trainee employees to these newprograms. The final evaluation ratings of the trainees for these programs rangedbetween “Excellent” and “Very Good”.
What are the training programs coveredby the new training plan, and whatare the future programs you wouldlike to offer in the field of alternativemedicine?
In view of the remarkable turnoverrealized through these programs, thePetroleum Training Centre will offer themonce more to the oil companies in the2005/2006 training plan. These programswill be organized according to the needsof KPC and subsidiaries. Several contactsare currently made with the training firmsorganizing such programs in order tostrengthen the employeesʼ psychologicalhealth and identify the new concepts thatcan be introduced into the future plan.
blood letting to heal ailments. He then
decided to work as a translator. One
day when translating an article written
by a Scottish doctor, it was saying that
Quinin was a good medicine for ma-
laria because it was a good astringent.
But Hahnemann knew more astringent
substances that had nothing to do with
malaria. So he decided to try Quinin
himself to find out about its effects. To
his astonishments he developed ma-
larial symptoms; fever, malaise, shiver,
sweating etc. This was when he knew
that Quinin treated malaria, not because
it was an astringent but because when
given to a healthy individual would in-
troduce malarial symptoms. This made
sense to Hannemann as it proved the
very old principle of “Like treats like”.
Like the ancient Greeks when for in-
stance they had a patient with diarrhea
they prescribed purgatives to enhance
the bodyʼs own reactions.
Thus the difference between conven-
tional medicine and homeopathy is how
homeopaths acknowledge symptoms.
In conventional medicine a symptom
After discovering the remarkable benefits of alternative medicine, Dr.
Hanaa Shams El Din, leading oral surgeon, was spurred to learn the
nuances of this fascinating science. Now she is a certified physician in
Homeopathy and has been presenting a series of well-received train-
ing courses on the importance of learning the techniques of Alchemical
Breathing at the Petroleum Training Centre. In her inimitable sponta-
neous style she talks to KPC World about the myriad benefits of this
revolutionary self healing technique.
New PerspectiveonLife
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illnesses after practicing Alchemical
Breathing.
What are the benefits of Alchemical
Breathing?
It has been found that restrictive
breathing patterns support subcon-
scious defence mechanisms to suppress
unpleasant emotions. In fact, such un-
healthy breathing patterns are often the
result of previous attempts to cope with
traumatic emotional or physical events
dating back as early as birth. When
feelings go unexpressed they are con-
sciously repressed or subconsciously
suppressed or stored in the mind and
body as chronic tension. It is inevita-ble that unexpressed feelings/emotions
are eventually expressed as pain and
disease. Since feelings are a form of
energy, which cannot be destroyed, but
can only change form, it is our respon-
sibility to Alchemise & transform this
energy before it causes disease in our
bodies and/or minds.
Breathing is the one involuntary meta-
bolic function that becomes voluntary
the moment we choose to take thereigns. This begins to explain why Al-
chemical Breathing ultimately leads to
the vivid experience of co-creating our
lives consciously, instead of being the
result of random thoughts and events.
We can choose to be at the mercy of
life, or we can choose to master it.
Another benefit is that Alchemical
Breathing brings focus to the mind,energy to the body in general, and
strength to the muscles specifically.
It also increases focus, performance,
and endurance. It also increases en-
ergy level and reduces stress. It also
clears the way to better spirituality as
it enhances the bond with the spirit.
Increasing oxygen levels in the blood-
stream is key to increasing the energy
available to the mind and body. Al-
chemical Breathing sessions energize
participants with a large immediate in-flux of oxygen. It also retrains breath-
ing mechanisms (muscles, lung tissue,
habitual patterns) to take in more oxy-
gen when stressed instead of the anxi-
ety ridden FIGHT or flight reactions.
Can you advice readers on how to
lead a healthier life style?
You need to follow the teachings of
our Prophet (pbuh) and our religion.
One cannot underestimate the power of smiling so you need to smile when you
meet others. To establish a healthy life-
style you need to exercise at least three
times a week. Try to get an eight-hour
night sleep at least four times a week to
recharge your body. A diet full of fresh
vegetables, fruits, whole grains and
drinking lots of water is essential. No
need for meat except once a week.
is a manifestation of a disease. In ho-
meopathy symptoms are acknowledged
as the mechanism chosen by the body
to treat itself. That is why homeopathy
never attempts to suppress them. In ad-
dition to that if the medication used isgiven to healthy individual will intro-
duce the same symptoms they treat.
Can you explain the importance of
Alchemical Breathing?
Oxygen-rich blood is the key element
needed by the body to create healthy
cells. Healthy cellular regeneration is
essential for good health: it has proven
to be the antidote for many sicknesses.
On the other hand, if most people are
using only one-third of their Lungswhen they breathe, they would be get-
ting only around 30% of the air and
oxygen they need for good health. Is
it any wonder that one out of every
two people is experiencing serious
disease? Alchemical Breath teaches
how to breathe more effectively. Al-
chemical Breath techniques open up
the entire respiratory system to allow
for more frequent and freer in and out
flow. Alchemical Breath increases
oxygen levels and breathing capacityby restructuring individual breathing
patterns so that a personʼs air volume
increases, by two or three times or
more. There are many documented
accounts showing that physical symp-
toms disappear in clients with chronic
Dr. Hanaa Shams El Din
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KNPC Unveil
New CorporateIdentity
Kuwait National Petroleum Company (KNPC), a KPC subsidiary in
charge of the refining industry in Kuwait, launched its new corporate
identity early this year. The new visual identity, consisting of a new
corporate logo was applied throughout KNPCʼs installations and fuel
stations.
The new logo stands for key attributes for which KNPC is known:
energy, performance, innovation, and its avid concern for HESE. The
new corporate identity is emblematic of these attributes, as well as
KNPCʼs leading role in the refining industry and the company's posi-
tive reputation among its customers, partners and suppliers.
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To shed light on KNPCʼs new corporateidentity, KPC World visited the compa-
nyʼs Public Relations Department which
is charged with overseeing the transi-tion to the new logo and implements the
process to phase out use of the old logo
throughout the company.
Over the coming months KNPC will ap-
ply its new identity across all operating
units. It will appear in company commu-
nications and at facilities and offices.
The department manager and the mas-
termind behind the media campaign, Mr.Mohammad Al Hajeri casts light on the
new logo which replaced the old logo
that has been used for around 60 years,
and to discuss other matters that are of paramount importance.
The interview follows
Can you tell us more about the newidentity and the significance of itscolours?
Our new identity and logo signals KNPCʼsunique position in Kuwait and symbolises
its various principal attributes. The colours
selected for the new logo are highly con-sistent with the business, the deep-rooted
expertise and the evolution of KNPC. The
flowing, seamless colours of the new logo
also represent the capacity and long expe-
rience of the Company in the oil industryas well as the standards which it strives to
achieve with its personnel. This is embod-
ied by the red colour which symbolizes thepower and deep-rooted presence of KNPC.
The green colour represents the economic
and industrial power of the Company aswell as the unwavering energy of its per-
sonnel. The green colour also embodies
the Companyʼs care for the environment,
security and safety and its keen interest toprovide clean sources of energy. The blue
colour reflects the spirit of innovation and
development represented in the use of modern technologies.
The launch of the new logo wassupported by an intensive mediacampaign. What did this cam-paign include to promote the newlogo?
We had clear objectives and a veryclear idea of our target audience
while planning our media cam-
paign. Any successful campaign relies onreaching the targeted audience with the
right communication means.
Previously, we had limited interaction
with the public, however that is now
changing as we expand our operations
and increasing the number of fuel sta-tions in the country. True we deal with
consumers but we had to design our
campaign quite differently from other
campaigns marketing consumer goods.
In fact, we organized a large media cam-
paign that involved the coordination with
international media corporations and with
the big companies with which we deal in
the international contracting field. The cam-
paign also included press advertisements,
road or bus posters and free vouchers to be
distributed to the public. In other words,
our campaign has a very broad scope tobring the desired goals to the public.
This campaign was launched through a
press conference, and then press adver-tisements were released. Advertisement
boards on buses and in the streets were
also distributed as well as leaflets and fly-
ers. It is worth mentioning here that thelogo of the Company was not radically
changed. We maintained some of the
same elements that existed in the old logosuch as the waves and some of the col-
ours. This shows that we are a Company
deeply rooted in our history and that wehave not forgotten where we came from.
If the red colour undoubtedly sym-bolizes energy, how does the choice of the blue colour symbolize the techno-logical strength of the Company?
We pride ourselves as being a company
at the leading edge of energy and in-
novation. The logoʼs blue colour alludesto the technological strides KNPC has
made and strives to achieve and continu-
ing tradition of reliable service to energy
consumers.
Lately, KNPC launched several projectsincluding the electronic control system of
the refineries, the electronic managementof the refinery, the electronic systems
used in different departments such as the
Information Service Departmentwhich offers endless services to
other departments, and the systems
currently adopted in the final imple-
mentation phase of the managementsystem of materials, maintenance, fi-
nance or accounting, and personnelʼs
affairs. It is indeed a huge project thatrelies on computers and on the full in-
terconnectivity of units. It also reducesthe use of papers and encourages the
use of the Internet and the e-mail.
Will the use of modern technologiesreduce the number of employees atthe Company?
On the contrary, by using modern tech-
nologies, we seek to upgrade the quality
and not the quantity. Thus, technological
Mohammad Al Hajeri
KNPC Public Relations Manager
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means will not reduce the human re-sources of the company but will boost
their quality and performance. KNPC is
currently seeking to employ the nationalmanpower to increase the contribution
and efforts of the same in the oil sector.
In other words, the Company is making
further efforts to train and promote theskills of personnel in order to meet tech-
nological requirements. We are asking
for an 80% contribution of the nationalmanpower into the oil sector although this
industry is very hard and complex. Never-
theless, most Kuwaiti citizens are seeking
employment in the Company, probablybecause they are satisfied with the quality
of work in spite of the obstacles and hard
conditions of the oil sector such as the ex-treme weather conditions and the nature
of work in external facilities.
The new logo gives an impression of
comfort and ease; does the situation
of the Company confirm this impres-
sion?
Rightfully pointed, the new logo suggests
not only the energy KNPC provides con-sumers but also the energy in the hearts
of its people.
Job satisfaction and deep sense of pridein our achievements is prevalent in the
Company and there are many tangible
signs in this respect. For instance, we areproud to be exporting leaders and manag-
ers to other companies in the oil sector
since we have a high potential to transfer
qualified manpower.
KNPC draws its strength from its people.Therefore, it goes without saying that we
would not have reached that status with-
out the flowing motivation, loyalty, satis-faction and endless efforts of our person-
nel. It is noteworthy that most leaders in
the oil sector have made their first steps
in this Company, thereby giving us sup-port and momentum to make more efforts
towards developing skills.
What are the procedures currently
taken by the Company to unify the use
of the new logo?
As regards the logo and the importance of
unifying its use in KNPC, an ad hoc com-
mittee, chaired by the Manager of Public
Relations, was constituted. It is comprisedof members from the PR Department and
from all KNPC departments whether the
refineries or the public services. Unifyingthe use of the new logo involves many
aspects such as the printing issues, the
stationery, the Companyʼs buildings, the
refineries and the fuel stations. It is aimedat covering all the facilities of the Com-
pany since the Board of Directors and the
Committee have decided to assign to one
Department the mission of using this logoincluding the design of prints and others.
This came after the decision made by the
Chairman of the Board of Directors togive the PR Department the sole authority
to control every new use of the logo and,
in the context of unifying the new logo, tocontrol issues related to the stationery andprints of the Company. In fact, a decision
was taken to prevent other departments
from introducing changes to these printswithout the prior consent of the Commit-
tee. Besides, a unified numbering was
adopted for papers, letters, exter-
nal prints, interior memoranda,fax models and records of
meetings and no other de-
partment has the author-ity to change the logo.
Regarding visit cards,
they were printed anddesigned by many
departments. Thus,
some used to print
them with a longformat, others with a large for-
mat. Some used to put the logo on the
right, others on the left. However, now,there is only one pattern adopted for all
visit cards where only the name, address
and phone numbers change but their loca-tions on the card are the same.
The ad hoc committee recommended,among others, to unify the display model.
For instance, if the Local Marketing De-
partment offers a display to another De-
partment, it should bear the same designexcept the name and the phone numbers.
Furthermore, the Companyʼs site on the
Internet has the same pattern now. This isvery important to unify the public image
of the Company.
Working in this sector that includes all
forms of energy involves many risks. It
requires several safety and protection
measures for the employees, the facili-
ties or the public in general. Can you
give us an idea about the procedures
taken for the prevention of dangers?
Working in dangerous places requires the
elaboration of rules and regulations of
safety to protect the lives of employeesand the public we are dealing with, and
to protect the equipment and facilities we
are using, to avert any material losses.
Since its foundation, the Company givesa particular attention to this matter par-
ticularly in the past few years since it has
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created safety, health and environmentaldepartments for KNPC or the oil sector
as a whole. For instance, in KNPC, we
have several safety regulations in ourrefineries. Besides, the management and
operation of fuel stations are as risky and
delicate as the facilities.
The employees of our refineries are well
trained to work under all circumstances
and to deal with any contingency inci-
dent that might take place. Nevertheless,working in fuel stations is harder since
it involves working with people and
car drivers of different nationalities andeducational backgrounds. This makes it
harder for us to control the safety issues
and requires further awareness-raising
campaigns by the Company to preventdangerous accidents in these stations.
Awareness-raising and safety campaignsare still prepared. Several campaigns havebeen prepared so far, the latest of all being
the safety campaign of fuel stations where
a funny personality named “Salama” (or
safety) was chosen to talk to the publicabout the risky behavior in fuel stations
and the means of safety protection. Thank
God, the campaign has had a good startin March and is still going on with efforts
aimed at developing it further.
Furthermore, we are working on two
fronts. The first is related to the techno-
logical and scientific means to developbetter safety and security conditions inoil facilities, while the second front is
related to continuous awareness-raising
campaigns about the safety of the person-nel and the public.
What are the projects related to the
technological development and that
provide further safety and security
measures?
There is no doubt that establishing these
projects, selecting the specifications of
equipment and materials and introduc-
ing or extracting the used materials areall subject to particular conditions. Even
if these equipments are more costly, the
Company spares no expenses to pay all
its dues in this respect.
Besides, the creation of fuel stations ac-
cording to particular specifications alwaystakes into account the safety measures
related to the facility or to its personnel,
along with other measures adopted bysafety departments to protect the safety
of employees in oil companies. Regard-
ing the used materials that are introducedand extracted, they are anti-sparks. Be-
sides, the used fuel and laboratory have
specifications that prevent sparkling or
dangers in the facility.
Will there be automated equipments
that can prevent, stop or control fires
or other incidents in fuel stations?
Some stations in KSA are using such
equipments but Kuwait has not yetadopted them. In new stations, we will
use the automatic gas system to re-
duce the dangers of fires until we re-
ceive the specialized equipments forfire prevention. However, the cur-
rent techniques available in fuel stations
are automatic equipments for the supplyof fuel and the reduction of potential dan-
gers in the station. Besides, manual fire
equipments and other means are used for
this purpose.
Can you give us an idea about the
media campaign launched by the PR
Department regarding safety in fuel
stations?
The media campaign has included sev-
eral activities and, thank God, it hasreceived very positive feedback from the
public. We have launched the campaignby placing advertisements in the daily
newspapers to inform people about safetyprocedures, as well as radio ads that have
reached the number of 210 within two
weeks and were broadcast as full spon-sors or co-sponsors of the most famous
programs. Besides, around 105 advertise-
ment boards were placed in streets within
two weeks, 25 ads on buses and thousandsof leaflets and posters were distributed to
the public in fuel stations. Different kinds
of brochures were also distributed in cin-emas according to the background of the
targeted public and internal prints were
handed out to raise awareness. Many
more ideas were also introduced such asthe distribution of a newsletter about safe-
ty, the organization of a contest including
many questions about safety measures
and several incentives to encourage peo-ple to read the leaflets related to safety.
Despite all the awareness-raising cam-paigns carried out by the Public Relations
Department and the Local Marketing
Department, the questionnaires carried
out so far have proved the necessity of increasing these campaigns. Therefore, it
was decided to create an ad hoc aware-
ness-raising committee that includes the
PR Department and several divisions suchas the Local Distribution Division and the
Safety Division. The committee is chaired
by the PR Manager and is composed of the Coordinator of Media & Prints in the
Department, the Senior Supervisor of Me-
dia, and the Safety Supervisor from the
Local Marketing Department, the Distri-bution Supervisor, and the Supervisor of
Technical Services. This Committee has
organized the latest media and awareness-
raising campaign and it is still making ef-forts in this respect.
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KPC & K-Companies’ Oil
Spill Contingency Plan
The Kuwait Petroleum Corporation (KPC) & Subsidiaries oil
spill contingency plan has been developed to The International
Petroleum Industry Environmental Conservation Association
(IPIECA) guidelines.
By: Captain Awad Saeed
Manager Environment& Oil Spill Response
Kuwait Petroleum Corporation
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adverse impact on KPC and Subsidiary
company business activities.
Purpose of the oil spillcontingency plan
The plan requires the KPC affiliated
companies (Subsidiaries) companies todevelop its own oil spill contingency
plans to activate a timely response
for Tier 1 & Tier 2 Marine and Land
oil spills. The plan shall be integrated
with the corporate (KPC) and KuwaitNational Oil spill Contingency Plans.
It also contains similar information for
a corporate role in coordinating support
response resources to Tier 2 & Tier 3 oilspills within Kuwait through The KPCIncident Management Team (IMT).
Scope of the plan
National Level (Kuwait): The
size, location and timing of a spill is
totally unpredictable. KPC affiliated
companies are at risk from a variety of
sources and activities ñ from on-landinterceptor operation, on shore and
sub-marine pipelines, vessel loading
and marine accidents off the coastlineinvolving KPC ships or cargoes. KPCand its affiliated companies may also
be required to respond to any marine
accident that threatens oil pollution of
the Kuwaiti shoreline, as defined in the
Kuwait National Marine Oil Spill Con-tingency Plan. Affiliated Companies
must have their own oil spill contin-
gency plans to cater for Tier 1 and tier
2 marine and land spills, integrated at
(Tier 2&3) with the KPC plan. In the
case of major spills (Tier 2/3) and/or
begin to impact outside of the site,
KPC will coordinate with the affectedcompany the spill response including
pooling off the oil sector combined
oil spill response resources and enrol
external organisation involvement. The
plan covers all aspects of assessing anoil spill, organising and mobilising an
appropriate response to the spill and
co-ordinating / liaising with the range
of external organisations which maybecome involved.
Authorities and responsibilities
Kuwait National Marine Oil SpillContingency Plan:
The Environment Public Author-
ity (EPA) is the co-ordinating agency
for Marine oil spill response. The EPAchairs the Kuwait National Marine Oil
Spill Contingency Plan established to
deal with oil pollution matters.
Kuwait Petroleum Corporation(KPC) and affiliated Companies are
member of the Kuwait Marine Oil Spill
Contingency Plan Committee. Kuwait
Oil Company (KOC) is the oil termi-
nals port authority.
Any spill at KPC affiliated Com-
pany Marine facilities, would be dealt
with by the KOC.
Captain Awad SaeedPast events in Kuwait and else-
where in the world have heightened
awareness of the risks and consequenc-
es of oil spill at sea, on the shoreline orinland. The possibility of an oil spill,
however remote, generates concern
within the company, local and national
authorities, government and media. If aspill has occurred all of these parties
generate an intense demand for infor-
mation and action and these pressures
will focus on KPC and the affiliated
company concerned. If the incident isnot handled correctly it can generate
complex technical, legal and public
relations problems, exposing the com-
pany to considerable cost and seriousdamage to its reputation both in Kuwaitand internationally.
Prevention remains the cheap-
est and best possible cure and, withinKPC affiliates, priority must be given
to maintaining and upgrading methods
of oil spill prevention. However, should
a spillage occur, a rapid and effective
response will be critical in minimisingthe resulting pollution and in demon-
strating KPCʼs commitment. When
such circumstances arise, the optimumorganisational structure and procedureswill depend very much on the nature
and severity of the incident. No two
incidents will be the same hence the
purpose of the plan is to provide in-
struction, guidance and informationon a tiered response appropriate to the
size, location and potential impact of
the spill. The objectives of the plan are
to minimise ecological damage and the
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International Level (International
operations outside Kuwait)
Kuwait Petroleum International
(KPI): has its own oil spill contingen-
cy plan developed in accordance withrelevant national/ international oil spill
legislation. At the Tier 2 and Tier 3 lev-
els the site-specific oil spill contingen-cy plans are integrated with KPC Planthrough KPI Crisis Management Team
(CMT).
All KPI assets have to implement
the Oil Spill Contingency Plan, whichintegrates the operating units and site
plans with the respective countryʼs Na-
tional plan for spills within the Euro-
pean Union Thailand territorial waters.
The national competent authoritiesdefine the relevant oil spill legislative
requirements for operators. The mini-mum requirement would define KPI s̓
responsibility for Tier 1 spills and inter-facing with other bodies in the event of
Tier 2 or Tier 3 spill.
International Spill from vessels
incidents in countries where there is noKPI operating unit the KPI Marine Oil
Spill contingency plan shall be imple-
mented.
KOTC: For any oil spill, a planedShipboard Oil Pollution Emergency
Plan (SOPEP) is maintained as outlined
in the company's Shipboard Manage-
ment System "Vessel Response Plan &
Guidance on Emergency Procedures"in accordance with National and Inter-
national rules, regulations and guide-
lines integrated with KPC Oil SpillContingency Plan.
KPC International Marketing
(KPC Marine): has response plan/ co-
ordination procedure with the charted
vessels owners for National and Inter-national Oil Spill.
Training and exercises in imple-
mentation of the mitigation procedures
must be held at regular intervals. Simi-larly, exercises in the communications
procedure will also be necessary.
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KOC/KNPC MARINE & LAND SPILLS PLAN EXERCISE 2005
DurationManagementSupervisorsOperator FrequencyNotesDateDate
ExerciseMarineLand
Notification
Exercise
1-2
hours••••••6 MonthlyTest communication
systems, check
availability of personnel,
evaluate travel time
to agreed site andarrangements can be
made
Dec.
2005•• KOC May &
Nov. 05
·• KNPC
Monthly aspart of MIPP
dr
Table Top
Exercise
2-8
hours•••• AnnualConsists of interactive
discussions of a
simulated scenario
among members of a
response team but do not
involve the mobilisation of
personnel or equipment
Dec.
2005•• KOC June
05
·• KNPC MAB-
Jul’05 MAA-
Aug’05
SHU-Sept
Equipment
Deployment
Exercise
4-8
hours••••••6 Monthly
combined
with
refresher training
Test the capability of a
local team to respond
to a Tier 1 or 2 type
spill. Might be run inconjunction with a
Tabletop or Incident
management exercises.
April 05
Sept.05
•• KOC May &
Nov. 05
·• KNPC MAB
Feb’ 05MAA
April’ 05 SHU-Jul
Incident
Management
Exercise
10-14
hours•• Annual
(with
outside
agencies
- EPA)
Demonstrates spill
response management
capabilities, integration of
roles of different parties,
focus on overall incident
management aspects.
Dec.
2005
KOC April &
Sep 05.
KNPC Dec. 05
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The interview follows
You have been bestowed with the
challenging yet prestigious task of
establishing KPC China Office. How did
you react when you were told that you had
been selected for this coveted position?
The decision entrusting me to manage
and establish KPCʼs Representative
office filled me with pride and honour. I
am extremely proud at the great faith the
Senior Management of the International
Marketing Sector has in me to manage
and establish the office. Opening the
office marks an important step towards
implementing KPCʼs expansion and
growth plans in China.
Yet I am aware of the huge challengesand responsibilities that lay ahead due
sheer size and magnitude of the Chinese
market and the fierce competition that
exist.
Currently, Kuwait does not feature
among the first ten countries that supply
China with oil and petroleum products.
Consequently, the Representative Office
shoulders the responsibility of boosting
Great journeys always start with a single yet significant step. March 2005 will
go down in the history of Kuwait Petroleum Corporation (KPC) as the month
the Corporation made a giant step towards realizing its strategic aspirations in
China, the rising economy power.
The International Marketing Sector at KPC inaugurated that month a
Representative Office headed by Mr. Haithem Al Ghais who brings to the new
post a vast and extensive experience in the field of marketing oil and petroleum
products.
The early foundation years are always viewed as the most difficult and
challenging, however, Mr. Al Ghais firmly believes that KPC is capable
of fulfilling aspirations and attaining big successes thanks to the business
attributes and expertise it possesses.
KPC China Representative Office :
First Pillar of Future Expansion Plans
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current business dealings and reinforce
KPCʼs presence there. However,
I remain undaunted by the challenges
that we are bound to encounter and I am
determined to rise to the challenges and
to play an active role in strengthening
Kuwaitʼs presence in this highly
promising market.
Owing to the enormous investment
opportunities in the Chinese market,
notably in the oil industry, you find
that most international and Gulf oil
companies are competing to gain
a solid ground. Moreover, attaining
a stronghold in China features
prominently in the future plans of all
industry majors.
KPC considers China as lucrative
market and a promising outlet forKuwaiti investments. As you may
recall, in light of Chinaʼs economic and
investment importance His Highness the
Prime Minister, Sheikh Sabah Al Ahmad
Al Jaber Al Sabah made an official trip
last year of the Far East to seek joint
cooperation opportunities in the oil field
and explore other business avenues.
The trip has ushered in a bright
cooperation avenue between Kuwait and
the Republic of China. The inauguration
of the Representative Office was thefruition of that visit and the outcome
of the remarkable and strenuous efforts
made by the International Marketing
Sector at KPC. I honestly say that the
office as an extension of the integrated
business of the Marketing Sector a link
of a long and firm chain.
How do you describe your experience
thus far as the Manager of the Office?
In retrospect, the few months of handling
the office were fraught with challengesthat came hand in hand with remarkable
achievements.
I took over the responsibilities of the
office officially in February this year.
Initially, I had to equip the office in all
areas and secure the communication
means and ensure the smallest detail.
Since we were founding an office in
Beijing we had to start from scratch.
I would like to commend here the role of
the Information Technology Department
at the International Marketing Sector
which has sent a special envoy to
provide and install all communication
means and equipment. One the personal
front, I also had to arrange my livingconditions to settle in the country and
to organize some personal matters such
as registering my children in school
and other matters that entailed time and
effort.
As for the achievements, the office
succeeded during the first month
of operation building exceptional
business relations with several; Chinese
companies that KPC had previously
dealt with as well as new companies that
had not dealt with before. Visits havebeen made to six major refineries which
left a positive impact and reflected
KPCʼs keenness to develop relations in
the future.
Undoubtedly, these achievements
represent a good beginning and augur
well for the success of our plans at
creating a strong platform to embark on
bigger projects in the future.
Can you mention the key
challenges that you foreseein the future?
As I mentioned earlier, the
challenges are extremely huge
due to several factors. Most
importantly, KPC was not a key
player in the Chinese market for
a long time. Therefore, we need
first to get acquainted with the
nature of the market and grasp
the commercial dealings market
and then get adapted to them
which could take some time.We should also adapt ourselves
to this nature and consider the
commercial dealings of China
in order to get acquainted with
them, and this might take us a
considerable period of time.
The second challenge is the
language barrier which represents a
considerable obstacle. The Chinese
market was enclosed and in isolation for
a long time, that is why you find that very
few people speak English. Thus, I have
encountered some difficulties in making
direct discussions with oil companies
and had to rely on a Chinese translator
and had no option but to make all the
necessary correspondence and contactsin Chinese. To offset this challenge, I
decided to learn the Chinese language
and I already started to take language
courses. I am confident that this initiative
will win the admiration and respect of
the companies we will deal with. I learnt
from past experience while dealing with
other Asian companies that customers in
Asia respect those who try to learn their
language and respect their traditions and
customs.
The other challenging factor is thedifficultly in marketing the Kuwaiti
product to an extent. Kuwaiti crude oil is
characterized as heavy crude with high
percentage of sulphur compared to our
competitors. However, I am confident
that we will be able to overcome all
these challenges with a spectacular
success if Allah wills.
The official inauguration ceremony
of the Representative Office was
Ha i t he m A l G ha is
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one of the best organized and well
attended events in the history of KPC.
Moreover, it was broadly covered by
the international and local media.
I treated organizing the inauguration
reception as a personal challenge and
I left no stone unturned to ensure its
success. Organizing the ceremony
entailed intensive period of extensive
preparation. The venue and the guest listwere carefully made. All the hard work
and effort was abundantly rewarded and
its success surpassed all expectations.
The event was heavily attended and
enjoyed broad media coverage. Guest
lauded its meticulous organization and
preparation.
International and local media agencies
made sure that they sent representatives
to cover the event and they were in full
attendance. Several press and television
interviews were conducted with KPCʼsdelegation headed by Mr. Jamal Al
Nouri, Managing Director International
Marketing, and the news of our grand
opening featured prominently in all
economy reports and publications.
Industry analysts commended KPCʼs
decision to enter the Chinese markets.
The visit of the Kuwaiti delegation
and the inauguration of KPCʼs Office
captured the attention of the official
Chinese media. The Chinese Television
invited Mr. Jamal Al Nouri and Abdulatif
Al Houti – President Kuwait Petroleum
International Company, to take part in a
program called “The Dialogue” which is
aired in English and is considered one of
the most important economy programs
in China.
Kuwait T.V had an exceptionalcoverage of the reception interspersed
with interviews with Mr. Al Nouri,
Al Houti and Naser Al Mudhaf,
Executive Assistant Managing Director
Marketing.
Industry observors and economic
analysts believe that KPCʼs decision
to step into Chinese markets came
late especially that many other oil
companies from the Gulf and the
world have preceded the Corporation.
What is your opinion in this respect?
I believe that KPCʼs decision to enter
the Chinese market was a timely one.
It was thoroughly studied and carefully
deliberated. Our foray into the Chinese
markets coincides with the Chinese
Government decision to open its doors
wide for foreign investments. Until the
last few years ago, the Chinese markets
have been extremely isolated making it
very difficult for foreign investors to
penetrate and it took long years for any
investment to yield their any success.
For example, it took the Kingdom of
Saudi Arabia seven years of ceaseless
efforts to set up its projects in China and
create a customer base for Saudi oil and
oil products.
China is now witnessing an encouraging
economic boom and is providinginvestors with large and enormous
investment opportunities. China is
ranked second world oil consumer after
the United States of America and oil
experts expect that the demand on crude
oil and on oil products will remarkably
soar in the coming few years due to the
increasing foreign investments.
KPC has all the attributes that qualify it to
become a force to reckon with in the new
world economy structure. During our first
year in China, we are exploring all newopportunities, providing the head office
with periodic reports and information
related to the oil market and means of
increasing oil cooperation between the
two countries. All signs indicate that
Kuwait will acquire a large share in the
Chinese oil market but this requires some
time and effort. I can confidently say that
gaining ground in the Chinese markets is
an achievable goal.
Part of the China office reception
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China is the world's most populous
country, with a continuous culture
stretching back nearly 4,000 years.
After stagnating for two decades under
the rigid authoritarianism of early com-
munist rule, China now has the world's
fastest-growing economy and is un-
dergoing what has been described as a
second industrial revolution.
In the early 1980s it dismantled collec-
tive farming and allowed private enter-
prise again. Now it is one of the world's
top exporters and is attracting record
amounts of foreign investment.
Having gained admission to the World
Trade Organization, China will benefit
from increased access to foreign mar-
kets but in return will have to expose
itself to competition from abroad.
This is expected to spur private enter-
prise and hasten the demise of state-runindustries, but some Chinese fear it will
come at heavy social costs such as un-
employment and instability.
The fast-growing economy has fuelled
the demand for energy. China is the
largest oil consumer after the US,
and the world's biggest producer and
consumer of coal. There has been a
massive investment in hydro-power,
including the $25bn Three Gorges
Dam project.
Demand for oil in China continues to
surpass expectations and is maintaining
high oil prices, according to the Inter-
national Energy Agency. China has
become a decisive but unpredictable
player in world oil markets, because its
fast-growing manufacturing economy
is prone to sudden shifts in petroleum
demand.
Oil analyst Daniel Yergin, Chairman
of Cambridge Energy Research As-
sociates said "China will be the most
dynamic element in the oil market for
several years," He added that China
last passed Japan to become the world's
second-largest oil market, after the
U.S."
"Robust end-user demand and the
reappearance of tight primary stocks,
including localized product shortages,
suggest that second-quarter apparent
demand may again exceed expecta-
tions, despite seasonal maintenance
at several large refineries," the IEA
said.
China: The World’s Fastest Growing Economy
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By: Dr. Fatemah Al Shatti
Coordinator Environment
Kuwait Petroleum Corporation
Wastes are materials that accompanied man over the past several decades and
have always been a source of pollution to the environment, regardless of the type
of wastes.
Wastes may be defined as undesirable
materials that may pollute the environ-
ment if we fail to treat it for our benefit
either at source or by adopting proper
scientific ways to dispose of it.
In 1970 the celebration of the Earth
Day began. Since that time, the friends
of the environment have increased and
there has been a great environmental
awareness, which led to a real desire
to put an end by taking steps to solve
the ever-increasing burden of garbage
which will help protects the natural
resources. This can be achieved by
KPC’s Green Office Project
awareness as to the method of
using raw materials.
2) Reuse of wastes: This may be in-
terpreted in the reuse of paper, but
printing on writing on the back side,or reusing plastic or glass bottles in
order to reduce wastes.
3) Recycling, which involves reusing
the wastes in order to produce other
products of a quality lower than that
of the original product.
4) Recovery, which means the using
waste recycling, one of the four basic
elements on which waste management
is built. These elements are commonly
known as the 4R, of which we must all
be aware:
1) Reduction, involves reducing the
consumption of raw materials,
which, in turn, reduces the produc-
tion of wastes, as follows:
a) Using raw materials that pro-
duce less waste
b) Reducing the use of raw materi-
als
c) Increasing environmental
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Dr. Fatemah Al Shatti
(Table 1)
Quantity of solid domestic wastes expected to be generatedby the various residential areas and the areas of waste
dumping sites required every five years
Dump Area
(000 square meters)
Dumped quantities
(000 tonnes)YearsSer.
77545601995-19991
87851832004-20002
101559972005-20093
117169142010-20144
159493972015-20205
543332051Total
References:
1) Table 1 (Environmental Strategies for Solid Waste Management) by Dr. Mishaal Al-Sakkan, 1997.
2) United States Environment Protection Agency
3) Executive By-law of the Law No. 21 of 1995
any potentially harmful residues,
and even such residues are now
used in several advanced countries
in the building industry.
This process can result in a thermal en-
ergy, which can be exploited in indus-
trial operations or in the generation of
steam or electric power.
In the State of Kuwait, there is a lack of
accurate statistics about the size of the
losses from the recycling of wastes of
all kinds. This by itself is an indication
of the existence of a problem in a coun-
try where the per capita waste produc-
tion is 1.4 kg per day, and the landfill
locations is estimated on the bases of
the density of domestic solid wastes be-
ing 590 kg per cubic meter, and where
the average depth of waste dumping
locations can be as deep as 10 meters
(Table 1).
There are more than 15 landfills sites in
Kuwait, the largest being located in the
Jileeb area. Global studies on the sub-
ject confirm that waste quantities that
are sent every day to the landfills for
disposal without considering the stand-
ard method of waste disposal.
Municipal wastes can be very ben-
eficial if we start segregations from the
source this will help reduce the amount
of wastes, part of those waste materials
that can be used from municipal wastes,
such as paper, carton, plastic and glass
bottles and other materials, thereby re-
ducing wastes from source will protect
the Earth and the natural resources.
of thermal recovery technologies in
the disposal of solid wastes, hazard-
ous solid and fluid wastes, hospital
wastes, compost and other wastes
by burning them in special furnaces
designed with high specifications,
at temperatures of 1200 - 1400 de-
grees Celsius at which level the
burning is total and does not leave
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at KPC is a civilized achievement that
shows our feeling of responsibility, and
our realization that we all work to serve
one Earth which will give us as much
as we give it. For this reason, the pro-
tection of the environment should be
regarded as a trust for which every one
of us is responsible.
Plastic containers will shortly be dis-
tributed to the offices. They will carry
the logo of KPC and the logo of the UN
Recycling.
A last word:
The success of the recycling project
KPC aims to protection and reduce the
overall environment and conserve re-
sources for our future generations, by
implanting the national and internation-
al laws and regulations in the region
and the entire world, and to apply the
4R rules in our operations. For this rea-son, the Green Office concept is not en-
tirely new, but illustrates the response
and interaction of the members of the
KPC family with this subject most se-
riously and with a high level of flex-
ibility. As we believe there is only one
Earth, Protect It Protect you.
II - Environmental Achievements
Protecting the environment is one of
our most important responsibilities,for each ton of paper that is sent to the
landfill site occupies more than 2.5 cu-
bic meters, while it is possible to bene-
fit from the paper and preserve the land
area, which by itself is a most precious
resource. To this end, KPC contributes
to the efforts of protecting the environ-
ment.
Through this experiment, KPC want to
familiarize society with the environ-
ment problems and methods of address-ing them by simple scientific meansand
modern technology.
Is this Project limited to office wastes
only?
This is a project for the protection of
the environment, and, as such, it is not
limited to the paper wastes generated
by offices, but extends to the waste ma-
terials of the cafeterias, such as juice
containers, biscuit cartons and waterbottles.
A container has been placed on every
department , near the photocopiers and
one near the cafeterias. Waste items are
collected by the cleaning company at
KPC for removing them to the place
where the re-cycling company will col-
lect them.
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is reflected in the creation of the Public
Authority for the Environment whose
function is to protect the environment.
Nation with high standard of living,
productivity, industrial development,
and population growth tend to havemore municipal solid waste, if we donʼt
take care of our waste from the source
then we are going to have a big prob-
lem, therefore, as we are all part of this
problem we can also be part of the so-
lution.
The “Green Office”
Concept at KPC
Paper Recycling
Paper recycling is an operation that
yields high environmental and eco-
nomic returns, for, according to a study
by the US Environment Protection
Agency, the recycling of one ton of pa-
per saves 4100 kilowatt/hour of energy
and 28 cubic meters of water, in addi-
tion to the reduction of air pollutants by
24 kg.
Environmental security consists of the
requirements that are necessary for
the welfare, security and stability of
nations, all of which are targets con-
tinuously pursued by our government
in view of their importance to the na-
tion and the country. This importance
I - The Environment and Environ-
mental Security
There are many environmental defi-
nitions, one of which being the place
where man lives with other living crea-
tures.
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36 The oil refining industry is considered as one of the most dangerous industries.
This is mainly attributed to its complex operations and its basic operating charac-
teristics. Petroleum refineries all over the world have played an important role in
many cases, in terms of local and global consumption. Even if operations are really
risky, a petroleum refinery that is well designed and well equipped with a protec-
tion system can operate safely.
Fire Protection in
Oil Refineries
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Mohammad Al Tahous
The different ways of fire protection in-
clude all the steps taken by the fire-ex-
tinguishing department to control the
possibility of the fire outbreaks that get
out of control. Usually, the means of fire
protection used by the fire-extinguishing
department largely depend on inspection.
Some of the factors that help control fire
are architectural practices, implemen-
tation of standards, overall awareness
programs regarding fires and monitoring
fires.
Inspection is the legal means to find
and check the weak points and defects
that endanger human lives and prop-
erties due to fires. The enforcement
technique might be used when other
means seem inefficient. The education
technique is used to notify employees
and raise their awareness regarding fire
hazards and safety measures. There-
fore, predicting fires contribute to the
efforts of fire protection by hi-lighting
the defective aspects that may requirecorrective teaching efforts or proper
legislations.
Architectural planning is also viewed as
another efficient means of protection to
offset fire outbreaks. This helps reduce
the speed of fire when it breaks out.
The importance of fire protection was
not clearly comprehended until the extin-
guishing departments started compiling
meaningful information regarding the
causes and prevailing conditions of fire.
When the fire department started making
more efficient efforts to prevent fires and
boost the skills of the fire extinguishing
staff, information regarding defective as-
pects of current fire prevention came into
light.
The results of fire protection efforts
are now taking new forms every year.
Many statistics confirm the efficiency
of fire protection programs. In 1973,
the efforts made by the National Fire
Protection Association (NFPA) that
gives top priority to the reduction of
losses caused by fires, have gained
full public support when the Associa-
tion published the results of a compre-
hensive study it carried out regarding
fire problems in the United States. In-
deed, in its report entitled ìAmerica is
on fireî, the Association confirmed the
need for more fire protection activi-ties to reduce the opportunities of fire
outbreaks. The Association considered
that putting more stress on fire preven-
tion would have an impact on the con-
ceived impression about America and
about the losses she incurs due to fire
outbreaks. This attitude of the Associa-
tion justifies the statistics regarding the
fields where fire prevention activities
were undertaken.
By: Mohammad Al Tahous
Chief Fire Extinguisher
Kuwait National Petroleum Company
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Oil Refineries
Just like the other industries, oil refiner-
ies go through three main stages:
1- Crude Oil
2- Crude Oil Treatment
3- Product
1- Crude Oil: For oil refineries, the
raw material used is the crude oil
that is delivered by the following
means:
a) Ships
b) Road Tankers
c) Pipelines
Crude Oil is delivered through the afore-
said means and is stored in reservoirs in-
side the oil refineries. The quantity of the
stored crude oil differs according to the
processing capacity of the refinery and
the supply schedule. Regardless of the
high reliability of supply, it is essential to
keep contingency stocks of oil to prevent
unnecessary shutoff of the unit.
Storing large quantities of crude oil
presents a great danger in any fire out-
break and can be hardly avoided. The
odds of a fire outbreak due to storing in-
crease when the crude oil is transferred
from the reservoirs to the processingunits. Usually, the crude oil is transport-
ed via pipelines and pumps, and every
means of transportation has its own fire
hazards. We will be describing in details
the different types of fire hazards related
to the transfer of crude oil and its means
of transportation.
2- Treatment of Crude Oil:
Treatment of Crude Oil refers to the main
activity of the oil refineries. The process-
ing of oil is carried out to produce dif-
ferent kinds of products and meet the
marketʼs needs. The main processing is
basically the distillation of crude oil. The
development of technology has brought
about several changes in the distillation
process as well as the other processes
in treating crude oil, in order to stream-
line the process and meet the marketʼs
needs.
The various processes for treating crude
oil are the following: Distillation, Cata-
lytic Cracking, Hydro-cracking, Reform-ing etc.
The crude oil processing unit usually in-
cludes a distillation tour, a furnace and
pumps to transfer oil to different com-
ponents of the unit. Crude oil processing
risks many fire hazards as different com-
ponents of crude oil are transferred at a
temperature exceeding their flash point
after cracking.
3- The Product:
Oil refineries produce several products
with different chemical and physical
characteristics, ranging from petroleum
gas to asphalt. Some refineries also have
a unit for extraction of aromatics that
produce gasoline, toluene and some oth-
er aromatic compounds.
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Below are some of the main products of
oil refineries:
a) Refinery gas (it is not usually sold
but is used for furnace ignition)
b) Liquefied petroleum gas
c) Naphtha
d) Gasolinee) High speed diesel
f) Kerosene
g) Fuel oil
h) Bitumen (Asphalt)
Every product listed above has its own
flash point ranging from -40∞C to -
200∞C. Due to their different processing
needs, many of the aforementioned proc-
esses are carried out at a temperature ex-
ceeding the flash point of the products.
Feed Side Hazard
There are several hazards related to the
storage and transfer of crude oil, and
many fire outbreaks occur due to ëfeed-
ingʼ in oil refineries. The main hazards
of the side feed equipment are attributed
to the large quantity of inflammable sub-
stances used such as:
- Storage Tanks
- Feed Pipelines
- Pumps
Petroleum reservoirs are usually safe
but poor maintenance or operational
errors can cause disasters, along with
natural disasters that can badly affect its
integrated performance. Furthermore,
pipelines are more or less similar to
petroleum reservoirs but with different
shapes, volumes, operating pressures and
temperatures. Most severe disasters that
occur in pipelines or petroleum reser-
voirs are attributed to poor maintenance,
operational errors, natural disasters and
deliberate sabotage.
The Prevention System:
For many decades, experience has proved
that careful and well planned operating
of any refinery ensures a high degree
of safety. The expression ìPrevention
should start from drawingî is a true state-
ment related to the design of oil refiner-
ies. However, whatever the case may be,
only well-designed equipment does not
necessarily ensure total safety of the re-
finery; operating procedures should also
be executed carefully and thoroughly.
The Protection System:
The following methods ensure the pro-
tection of feeding processes in oil refin-
eries:
- Design a good system for fire
control.
- Provide water sprinkler system to
prevent explosions.
- Provide ëfoam valvesʼ system.
- Provide a sealing fire preventionsystem for the rims of floating-roof
reservoirs.
- Provide a foam injection system.
- Provide a mobile fire extinguisher of
the powder/foam type.
- Provide long-range foam and water
guns.
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KPC's vision
is to become a regional leader
in HSE performance