COMPANY PROFILE
2015
KUWAIT OIL COMPANY
+965 2398 3661 | www.kockw.com
The 2030 Strategy Editorial: Annabelle Withering
© Kuwait Oil Company
Like so many environmentally conscious companies, reducing greenhouse emissions is extremely important to the Kuwait Oil Company. As part of its 2030 Strategy, the company is attempting to reduce its gas flaring to less than 1% of total production by 2017 - “We are strongly committed to creating a healthier environment, and have dramatically reduced gas flaring. We are steadfast to further reduce it to as low as possible,” explains Mohammed Al-Zuabi, KOC’s Manager Gas Operations Group. PAGE 2
KUWAIT OIL COMPANY In December 1934, His Highness Sheikh Ahmad Al-Jaber Al-Saber signed the very first Kuwait Oil Concession Agreement, awarded to Kuwait Oil Company (KOC) and in February 1938, first oil was discovered in the Burgan Field following a technical report from Cox and Rhoades. KOC was founded by the AngloPersian Oil Company – known today as BP – and the Gulf Oil Corporation – now Chevron.
THE SILVER WHEEL A commemorative event in 1946 marked Kuwait’s first crude oil export aboard the tanker ‘British Fusilier’. The late Sheikh Ahmad Al-Jaber Al-Sabah turned a silver wheel to begin this landmark process for the country. 50 years on and June 30th 1996 saw the half century anniversary of exporting the first Kuwaiti oil shipment, allowing the State of Kuwait to join the ranks of the world’s major oil producers. The event was started by Mr. Southwell, Director of Kuwait Oil Company Ltd., London, where he received Sheikh Ahmad Al-Jaber A-Sabah and his companions, escorting them to the ceremony site. Once more, the silver wheel was turned to mark this special occasion - 50 years on - to start the first Kuwaiti crude oil shipment flowing through an offshore pipeline to the British tanker Fusilier. In just over 11 hours, 10,567 tons of crude oil was loaded - an average of 950 tons per hour. At the celebratory event, Sheikh Ahmad Al-Jaber A-Sabah said: “Every one of my people and my friends will rejoice with me in this happy event, which by the Grace of God is for our future and welfare. I thank God for such an opportunity as this which will help us carry on with the various improvement
which we desire for the happiness and welfare of the Kuwaiti people. I would like to further mention the assistance offered by the Company during their operations in our country. My thanks are also due to Her Majesty’s Government for their help in making such operations a success, and to my personal friends the British and American members of the Board as well as to all the Company’s staff for their valuable assistance. I am sure the friendship relation existing between us and the Company will continue to exist in a spirit of cordiality and good will.” Today, the company’s activities have extended to include exploration operations, drilling of test wells, onshore and offshore surveys and the developing of producing fields to crude and natural gas exploration.
GOGCE In March this year, the annual Global Oil & Gas Conference and Exhibition (GOGCE) was held at the International Fairgrounds in Mishref. Sponsored by KOC, the event, now in its seventh year, helps to share the company’s 2030 strategy, strengthening business relationships between KOC and contractors and improving health, safety and environmental procedures. With the aim of achieving ‘excellence in performance’, GOGCE helps to play an important role for KOC in its drive for broader business relationships and knowledgebased expansion. In August, KOC signed a contract with Petrofac for the provision of a pipeline network which will carry oil to GCs 29, 30 & 31 in NK. The ceremony, held at KOC headquarters in Ahmadi, was
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signed by CEO Hashem Sayed Hashem. The signing of the contract was also witnessed by a number of his deputies and officials. Petrofac was represented by Executive VP for Operations in GCC Sunder Kalyanam. During his speech, CEO Hashem stressed the importance of this project for the three GCs, highlighting that Petrofac is one of the most important oil partners for the country. With a business relationship that has succeeded for more than 15 years, Hashem drew on the success of Petrofac, which has shown great success in the implementation of all projects.
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“Reducing gas flaring can make a significant contribution towards mitigating climate change”
ZERO ROUTINE FLARING Earlier this year, it was announced that gas flaring is having potentially catastrophic results, both environmentally and from a resource management perspective. Each year, it’s predicted that up to 140 billion cubic meters of natural gas is produced, together with oil, which is subsequently and wastefully flared out of various oil and gas fields across the world. These statistics put into perspective the impact of gas flaring – estimating that more than 300 million tons of CO2 is emitted into the atmosphere - this is equal to the harmful emissions from 77
KUWAIT OIL COMPANY
© Kuwait Oil Company
million cars. In April, Chief Executives from the major oil companies met to discuss the harmful impact of gas flaring and have proposed a bid to end all routine gas flaring at oil production sites before 2030. The ‘Zero Routine Flaring by 2030’ initiative, has already been endorsed by ten oil companies – including KOC – nine different countries and six development initiatives. Its launch in April was hosted by United Nations Secretary-General Ban Ki-moon and Jim Yong Kim, the World Bank Group President. “Gas flaring is a visual reminder
that we are wastefully sending CO2 into the atmosphere,” explained Jim Yong Kim. “We can do something about this. Together we can take concrete action to end flaring and to use this valuable natural resource to light the darkness for those without electricity.” “As we head towards the adoption of a meaningful new international climate agreement in Paris in December, these countries and companies are demonstrating real climate action. Reducing gas flaring can make a significant contribution towards mitigating climate change.
I appeal to all oil-producing countries and companies to join this important initiative,” Ban Kimoon added. Kuwait Oil Company is currently working towards reducing its gas flaring to less than 1% of total production by 2017 through numerous strategic ideas. These include: making significant financial investments in state-ofthe-art facilities and operations, working closely with the GGFR to ensure this target is met, ensuring flare reduction is made a company priority and holding periodic reviews of the gas value chain from producing well to end user in
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© Kuwait Oil company
© Kuwait Oil Company
an attempt to identify all sources of waste or potential optimisation. “We are strongly committed to creating a healthier environment, and have dramatically reduced gas flaring. We are steadfast to further reduce it to as low as possible,” Mohammed Al-Zuabi, KOC’s Manager Gas Operations
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Group, said in a World Bank report. “I firmly believe it was only possible because there was a complete change in the employee mind-set towards better understanding the environmental consequences of gas flaring and preserving a very valuable
resource.” The GGFR (Global Gas Flaring Reduction Partnership), launched at the World Summit on Sustainable Development in Johannesburg in 2002, helps and supports the efforts of oil producing countries and companies in a bid to increase the use of associated natural gas,
KUWAIT OIL COMPANY reducing the need for gas flaring which leads to environmental impact and the waste of valuable resources.
2030 TARGET In addition to meeting its target to reduce gas flaring, KOC aims to increase its production capacity to four million bpd by 2020 from an estimated capacity of 3.4 million bpd – as part of these plans, the state has put forward a predicted $40 billion. Speaking to Reuters, Saeed al-Shaheen, KOC’s well surveillance manager explains: “There are plans to spend $40 billion to lift the capacity up to four million by 2020 and maintain that figure till 2030. We are a state oil company, we always look at the long-
“We are strongly committed to creating a healthier environment, and have dramatically reduced gas flaring”
term picture and at a time when the oil price is low, it’s more economical to invest in expansion.” Looking forward to the future and KOC has assigned itself a mission and established an important vision to adopt a leading position within the upstream oil & gas industry as an ‘integrated, value-driven enterprise.’ Intent on delivering on its commitments to both its customers and stakeholders, KOC, in the coming years, hopes to maximise the strategic value from oil to realise the potential of gas, to grow and hold reserves for a safe and sustainable future, to ultimately continue in its quest to strive for excellence and contribute to both the Enterprise and to the State
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