KUWAIT OIL COMPANY 13th of February 2012 www.kockw.com
Lights & Flares 1993
Contents
Image
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Recent Challenges & Achievements Strategic Gas Objective Gas Flaring History Gas Flaring in Perspective Flaring Reduction Projects in action Soft Flaring Reduction skills Mindset shift Challenging gas flaring targets Flaring Reduction Projects/Initiatives • South & East Kuwait • West Kuwait • North Kuwait • Conclusion
Recent Challenges
There have been three major operational challenges in the recent years:
Facilities oil production capacity limitation Increased water cut resulting into huge water quantities disposed in effluent water pits which has a negative environmental impact High gas flaring which has both environmental as well as economical impact besides affecting the KOC Image
Achievements
In October 2010 Kuwait successfully carried out a capacity test production of 3 Million barrels of oil per day. KOC invested heavily and achieved 97% of produced water being disposed/injected in an environmentally friendly method. Gas Flaring percentage has been on a reduction trend since 2005/2006
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Strategic Gas Objective Realizing the potential of gas 17.18% â&#x20AC;˘ Optimize the production and utilization of associated gas and maximize production of non-associated gas in support of the energy requirements for the State of Kuwait, its environmental objectives and the creation of value. KOC had always a dream of reaching This dream is now 1.75% 1.14% <1% gas flaring. within reach < 1.0%
2005-06
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2010-11
2011-12 4
2012-13
Gas Flares of the World (2003)
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Gas Flaring Trend Reduction (Based on Satellite Image Processing of GGFR)
Kuwait leads by example in gas flaring reduction efforts in the region. Even beyond 2008, Kuwait is still enjoying a decreasing gas flaring volumes while the produced gas is ever increasing
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Less Flaring Means Clear Skies
What Kuwait Airways used to complain about upon descending to the runway
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Gas Flaring History
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What Does It Mean? # of Wembley Stadium fields with 1 foot thick carbon Layer 300
267
250 200 151 150
119
100 66 50
43
31
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0 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 www.kockw.com
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Year wise Improvements compared to 2005-2006? Percentage of gas flared 100%
57% 45% 25% 4%
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12%
16%
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100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Power to the People?
40,392 houses have been powered over 6 years since the start of the flaring reduction program www.kockw.com
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Capital Investment 1.
2.
Gas flaring reduction projects: a.
Gas & Condensate Telemetry (vigilant control/monitoring)
b.
11 New CRUâ&#x20AC;&#x2122;s in S&EK & new 3rd train at GC-28
c.
Gas Sweetening Facility (GSF)
d.
New 40â&#x20AC;? Gas Export Line from NK
e.
Slug Catchers for WK Lines (GMW-3 & GMW-4)
f.
Selective Oil Production / LP Gas Network upgrade
g.
NK Associate gas strategy
On Track Gas flaring reduction projects: a.
New BS-160 / 171 & 132
b.
New Infrastructure gas networks
c.
Quick wins, spillovers and crossovers
d.
Gas compression and gas re-injection facilities in WK
e.
New Gas and Export Pipelines
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KOC Leadership and Staff Commitment 1. Flaring in KOC is tracked on a daily basis by the management at all levels 2. Many corporate flare reduction campaigns were organized 3. Enhance Reliability of existing facilities 4. Leadership Committee monthly update on gas flaring and gas flaring related projects 5. Frequent coordination meetings across the KCompanies 6. Regular meetings with the major consumers 7. It is part of our KPIâ&#x20AC;&#x2122;s (a daily job) www.kockw.com
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Mindset shift 1.
Environmentally more sensitive
2.
Monetize gas flaring
3.
Enhance Corporate Image
4.
Prestige KOC C&MD HSE award and Significant Achievements Award
5.
Gas Flaring Reduction Campaigns at all levels
6.
Present papers in local and international conferences
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Mindset shift × Obsolete mindset: Production, Production, Production. New Mindset: Production, Flaring, Safety, Environment, Costumers needs, costumers limitations We can reduce flaring by talking with each others Small ideas/initiatives in the right place at the right time can go far in terms of gas flaring reduction Integration between facilities Look at the other side of the fence (GMW-4)
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Challenging The Gas Flaring Targets The gas flaring target of less than 1% is being challenged, we aim to reduce further to the Technical/economical Limit â&#x20AC;˘ Special task force is initiated to study the Technical Limit and accordingly develop new action plans for the new limits.
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South & East Kuwait Projects/Initiatives Project
Title
EF/1769
3 New TVCs in GC-7, 8 & 21
EF/1738
New 40â&#x20AC;? HP Export Gas Pipeline from M/F-GCMB to LPG Plant (MAA-02)
EF/1740
New Condensate 20" pipeline from GCMB Manifold to MAA-02
Sep-13
EF/1655
New Booster Station BS-160 in SEK
Feb-12
EF/1850
Improvements to Existing Booster Stations BS-140 & BS-150
Jun-13
Turn-Over Date Jul-12 2 years from award
Initiatives 1.
Synchronization of facilities shutdowns including other K-companies
2.
Selective production areas to avoid flaring
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West Kuwait Projects/Initiatives Project
Title
EF/1718
New Booster Station BS - 171 in WK
May-13
Contract No. 36016
GCP for GC-16 & Gas Re-Injection Project
Jan-12
EF/1746B
New 24" Export Gas & 14" Condensate pipelines from BS-171 to AGRP-MAA
Turn-Over Date
Initiatives 1.
WK Gas Utilization Committee
2.
Shutdown production if required to avoid flaring
3.
Gas Sweetening Facility
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2 years from award
North Kuwait Projects/Initiatives Project
Title
Turn-Over Date
New Booster Station BS – 132, EF/1719
Enhancement of BS 131 (NK) &
Jun-13
3 New TVCs in GC-15, 23 & 25 EF/1701
New 40“ Strategic Gas Line from BS-131 (NK) to LPG Plant (MAA)
Initiatives 1.
NK Associated Gas Management Strategy
2.
Enhance Reliability/Availability programs
3.
Increase flexibility through routing excess gas to S&EK
4.
Optimize Gas Lift operation
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Commissioned
The Global Gas Flaring Reduction
Why Join GGFR? GGFR partners have established a collaborative Global Standard for gas flaring reduction. This Global Standard provides a framework for governments, companies, and other key stakeholders to consult with each other, take collaborative actions, expand project boundaries, and reduce barriers to associated gas utilization.
Kuwait has joined the GGFR in August 2011 www.kockw.com
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Conclusion 1. Flaring Reduction is driven by our concern for the environment. It is economically viable and enhance the Kuwaitâ&#x20AC;&#x2122;s image 2. Gas Flaring Reduction can be achieved not only by hardware but also through soft tools 3. A mindset shift results in a shift in gas flaring 4. The flaring targets are being challenged 5. Assets/Groups/Teams/downstreams and Sub teams work together for one aim of reducing gas flaring
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Thank you
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