5MissionTo explore, develop and produce to marketable quality the hydrocarbon resources in the State of Kuwait.To safeguard our people and the environment.To conduct our business in accordance with government policy, good reservoir management practice and by using the most efficient and economic means available.
6VisionAchieve a leading global position in Upstream Oil & Gas as an integrated, value- driven enterprise, by:Maximizing the strategic value from oilRealizing the potential of gasGrowing reserves for a sustainable futureBeing an employer of choiceRealizing value from technologyStrengthening our commitment to HSSEStriving for excellence in performance, andContributing to the Enterprise and State.
7Key Feature of our Strategy Achieve the following production targets3.0 MMBOPD by 20103.5 MMBOPD by 20154.0 MMBOPD by 2020 and maintain it untilDevelop Heavy OilProduce 600 MMSCFPD of free gas by 2010/2011 and increase to 1,000 MMSCFPD by 2015Pursue aggressive exploration program including the offshore.
8ChallengesDeveloping high pressure high temperature complex gas reservoirsDevelop heavy oil to reach 450 MBOPD by 2030Skilled and Experienced ManpowerWater ManagementTechnologyEnvironmental issues
14Services Contractors Cementing Halliburton DowellSchlumberger BJ Services, USA National Petroleum Services Co.Int'l Serv. Company Int'l Serv. Company Int'l Serv. Company LocalMudMI, Baroid Halliburton Baker Hughes Egyptian Mud Engineering Co.Int'l Serv. Company Int'l Serv. Company Int'l Serv. Company RegionalDirectional Drilling, MWD & LWDAnadrill Schlumberger Sperry Halliburton Baker Hughes WeatherfordInt'l Serv. Company Int'l Serv. Company Int'l Serv. Company Int'l Serv. CompanyDrill BitsBaker Hughes Reed Smith VarelCoringDBS Halliburton CorproInt'l Serv. Company Int'l Serv. CompanyMud LoggingInternational Logging (Weatherford) GeologGyroscopic SurveyGyrodata, USAInt'l Serv. CompanyFishing & Tools RentalSmith International WeatherfordTubular InspectionAl-Mansoori Engineering GENAPESCORegional RegionalWell Control & Snubbing SvcsWild Well Control Hi Arctic Energy ServicesTurbo Drilling ServicesSmith InternationalHere is a graphic showing KPC and its subsidiaries:Kuwait Petroleum Corporation is the state-owned entity responsible for Kuwait’s hydrocarbon interests throughout the world. As part of the global energy industry, we help to supply the world with its vital oil and gas needs by exploring for, producing, refining, transporting and marketing these precious natural resources both in our home country and internationally.Kuwait Oil Company (KOC) is responsible for the exploration and production of oil and gas within Kuwait.Kuwaiti National Petroleum Company (KNPC) is responsible for refining, liquefied gas operations, and the marketing of petroleum products within Kuwait.Petrochemical Industries Company (PIC) is responsible for producing and marketing fertilizers and petrochemicals.Kuwait Oil Tankers (KOTC) is responsible for transporting crude oil, petroleum products and liquefied gases.The Kuwait Aviation Fueling Company (KAFCO) is responsible for supplying airplanes with fuel at Kuwait International Airport.Kuwait Foreign Petroleum Exploration Company (KUFPEC) is responsible for oil and gas exploration and exploitation outside of Kuwait.Kuwait Petroleum International (KPI) is responsible for operating downstream acquisitions in Europe that have effectively made KPC a fully integrated operation from well-head to gas pump.Kuwait Gulf Oil Company (KGOC), is responsible for Kuwait’s oil interests in the Divided Zone between the State of Kuwait and Saudi Arabia.Oil Sector Services Company (OSSC) is a new company, established in 2005, which provides construction and security services to KPC and its subsidiaries.Oil Development Company (ODC) is also a new company, which was established in 2005, to develop four oil fields in North Kuwait.14
153 - KOC’s Portfolio of Major Projects for Int’l. Contractors
17FUTURE PROJECTS (Cont’d.) Pipeline Projects (1/2)EF/1713Installation of Low Sulphur Fuel Oil (LSFO) pipe line from MAA to Sabiya Power Station and Fuel Gas Line (LPG to Doha/Sabiya & NK Fields)Tender issue – Sep-09Installation of 170 Km LSFO Line 1x24” from Al-Ahmadi Refinery to North Kuwait Power Stations (Doha & Sabiya). Also, installation of a new cross country pipeline (2x48”) fuel gas (approximately 170 km each) from LPG plant at Al-Ahmadi Refinery to supply NK power stations & NK KOC facilities complete with pumping, metering system, and corrosion monitoring.EF/1760New Gas Oil Pumping Station at MAA with Pipelines from MAA to Azzour and Shuaiba Power StationsTender issue – Sep-09Install New Gas Oil Pumping Station with VSD & install a new Gas Oil Pipeline 1x18” from Al-Ahmadi Refinery to south Kuwait Shuaiba Power Station (5 Km) with metering station. Also, installation of 2X40” Fuel Gas Lines (65km each) from MAA to Azzour Power Station.
18FUTURE PROJECTS (Cont’d.) Pipeline Projects (2/2)EF/1727A New 30” Crude Oil Transit Line (TL-4)Tender issue – Oct-09Extension of Point A manifold in North Kuwait and installation of a new 30” cross country pipeline (approximately 120 km) from Point A to the new Central Mixing Manifold . The Pipeline will have sectionalizing valves and leak detection system and metering station.With all associated Instrumentations and Electrical works. Launchers & Receivers.
19FUTURE PROJECTS (Cont’d.) Gas Projects (1/2)EF/1719Construction of a New BS 132 & enhancement at BS-131 NKTender issue – Apr-09 (Under Evaluation)Provision of a new grass root gas Booster Station, BS132 in North Kuwait. BS132 will have a single train of 250MMSCFD capacity, including LP1, LP2 and HP compressors followed by gas dehydration. Each compressor will have its own gas turbine driver. The new BS132 is designed to operate in parallel with existing gas booster station BS131, taking suction from the NK LP gas network from GC’s 15, 23, 25 & 24 at approximately 10psig and discharging into the existing export system at approximately 925psig.The enhancements of existing BS131 to include new LP and HP inlet separators, control and instrumentation upgrades (including cross communication with BS132) and provision of new HP and LP flare knock out drums and flare stacks.New tank vapour centrifugal compressor at each of the existing gathering centres GC15, GC23 and GC25.14 new pipelines to interconnect between GCs and Booster station ( 8” to 48”) 10km in length.
20FUTURE PROJECTS (Cont’d.) Gas Projects (2/2)EF/1718New Booster Station BS-171 – WKTender issue – Aug-09The project scope shall consist of Engineering, Procurement, Construction, Commissioning of a new grass root Booster Station (BS-171) in west Kuwait, will comprise three new identical two stage compressor trains (LP & HP), including gas & condensate dehydration trains. Each train shall be capable of processing 125 MMSCFD sour gas, from Gathering GC-17, GC-27, GC-28 and future GC-16. One TV compressor capacity 6 MMSCFD at GC-27. One TV compressor capacity 8 MMSCFD as spare, at GC-28.The above includes significant quantity of inter-connecting pipelines including a manned Mid-Stream Slug Catcher facility.
21FUTURE PROJECTS (Cont’d.) Injection Projects (1/3)EF/1071Effluent Water Injection Ph-I NK & Central Sea Water Injection PH II NKTender issue – Nov-09Collect and transfer effluent water from GC-15, 23 & 25 to an expanded Central Injection Pumping Facility (CIPF). Expand Sea Water Treatment Plant from 300 – 500 MBWD. The project include the expansion of the following plants: - GC-15, 23 & 25, Sea Water Treatment Plant (SWTP), Central Injection Pumping Facility (CIPF) and the tie-in of GC-24’s Effluent Water pipeline to the CIPF. The SWTP is located on the coast at Sabriyah and connected to the CIPF via a 48Km 36” link line.
22FUTURE PROJECTS (Cont’d.) Injection Projects (2/3)EF/1772Wara Pressure Maintenance Project (WPMP)Tender issue – Feb-10This project is required to provide pressure support for Wara formation in the Burgan field. The Wara Project includes a new water treatment facility taking 1,000,000 BWPD of produced water directly from existing Balance Tanks at Effluent Water Disposal Plants I & II, after treating it is transported via a high pressure (2200 psig) pipeline to 200 injection wellheads. The 200 new water injection wells are required to meet sub-surface needs for water injection through 22 manifolds (average 10 wells per manifold). The synopsis of scope consist of :20 – Tanks ranging from 10,000 BBLs to 240,000 BBLs60 – Pumps, ranging from 175 BHP to 3900 BHP10 - Water Treatment Units, Induced Gas Flotation Units.700 Km of Pipeline Systems, Various Sizes ranging from 6” to 30”. Location near GC 14.
23FUTURE PROJECTS (Cont’d.) Injection Projects (3/3)EF/1761Effluent Water Injection Plant Ph-II NKTender issue – Jan-11This project is required to provide pressure support for Sabriya & Raudhatain fields in NK. To achieve this it is required to provide injection facility with a capacity of 500 MBWPD by the year 2013/2014. This project has a dual purpose of pressure maintenance and environmental objective. Effluent water will be collected from 4 oil gathering centers GC’s 15, 23, 25 & 24 in NK. The facility will comprise of water collection, treatment and injection at pressures between 2400 psig and 3700 psig in a total of 150 injection wells utilizing approximately 250 KM of pipelines ranging from 6” to 30”.Tanks MBWPDPumps 15Water treatment facilities 1
24FUTURE PROJECTS (Cont’d.) Safety & Instrumentation Projects (1/2)EF/1700Integrated Security system in all KOC FacilitiesTender issue – Jul-09Installing Surveillance Systems, Access Control Systems and Intruder Detection Systems at (96) sites that includes Gathering Centers, Booster Stations and other facilities of the Company distributed across the Kuwait oil fields and can be considered a scheme of National scale. The integrated security system will provide monitoring and control functionality at (4) Regional Asset Security Centers and a Central KOC Security Center which shall be built as part of this project. The scope of work will include design, supply, installation, configuration and commissioning of a 1300KM Fiber Network that shall provide connectivity to over 2500 cameras, security management systems, alarm monitoring stations and access control systems.EF/1605SCADA for all Wells in SEK FieldTender issue – Apr-11To install SCADA at all SEK wellheads (approx 1122 wells) to control, measure & transmit wellhead (tubing & casing as applicable) pressures and flow lines pressures. In addition adequate provision 20% for future wells & provision of spare RTU & SCADA System at 14 GCs.
25FUTURE PROJECTS (Cont’d.) Electrical Projects (1/2)EF/1763New 72 MW Raudhatain “D” SubstationTender issue – Aug-10New 132 KV Main Intake Substation Raudhatain "D" of(72 MW) capacity to run 200 Electrical Submersible Pumps (ESP) including installation of 11 KV Switchgears, transformers, O/H lines, power & control cabling to downstream company S/S etc. in Raudhtain fields.EF/1764New 72 MW Sabriya “B” SubstationTender issue – Aug-10New 132 KV Main Intake Substation Sabriyah "B" of (72 MW) capacity to run 300 Electrical Submersible Pumps (ESP) including installation of 11 KV Switchgears, transformers, O/H lines, power & control cabling to downstream company S/S etc. in Sabriya fields.
26FUTURE PROJECTS (Cont’d.) Electrical Projects (2/2)The main objective of this project is the safe operation of the oil facilities demonstrated in reconstruction of a number of existing substations and control rooms in a way that would provide the necessary safety for personnel and equipment. This objective will be accomplished by the following:1] Construct two story elevated, blast proof control rooms, and maintenance offices for 9 company oil/gas facilities (7GC's 1,3,6,7,8,20 & 21 & 2 Boosters stations). 2] Construct safe, elevated, centralized electrical Substations / switch rooms with advanced equipments at 19 locations through out SEK fields (14 Nos. SEK GC's and Booster Station 140 and 150, NTF,STF & M52). 3] Power Distribution SCADA for SEK field including SCADA control room.EF/1600Enhancement to Substations and Control Rooms at SE&K GC’s, BS’s, NTF & STF and Replacement of M52 Substation at MAATender issue – Apr-11
28Current Opportunities KOC is responsible of major upstream operations in Kuwait.KOC runs and maintains Ahmadi City.KOC owns and manages Ahmadi Hospital (Southwell)Current Live contracts exceed 600 # valued over 20 Billion US$Current tenders exceed 250 Nos. valued over 15 Billion US$ under different stages of biddingKOC total staffing of 6,000 employees.Works and Services are entirely outsourced.KOC relies on reputable contractors and vendors to support its activities, objectives and long term strategies
29Vendors/ Manufacturers Selection of proven / reputed manufacturersProducts meeting specification, quality and delivery schedules.Approved Vendors benefit from Direct / Indirect Procurement opportunities
30Approved Categories No. of Main Categories (125) No. of Sub Categories (112)Total No. of Approved Manufacturers (1606)No. of Countries (48)No. of Approved USA Manufacturers (237)
31Minimum Requirements for Vendors Prequalification limited to manufacturers (not assembler/ system integrator)Minimum 5 years of proven experience.Own design, manufacturing & testing capabilitiesAccreditations such as: ISO/ ASME/ API/ HSE/ NB & Type Test Report from Internationally recognized testing agencies like: KEMA / BSI etc.Past experience with IOCs / ISPs for last 5 years.Audited Financial Statements for 2 yrs in accordance with IFRS
32PQ of Contractors, SPs & Consultants KOC implements OPEN ONGOING prequalificationQuarterly monitoring of companies’ performance.Annual verification of financial capabilities of approved companiesPoor performance of companies entail Q-listing.Pre Qualification TypesPQ for existing categories of Works/ ServicesPQ for Specific Projects (on case to case basis)PQ for Companies Offering New Technologies
33Categories for Int’l. Companies Major EPC Contracts (> US$ 500 million)Large EPC Contracts (US$ million)Medium EPC Contracts (US$ million)Small EPC Contracts (< US$ 50 million)Construction of Mega TanksOffshore Support ServicesOnshore Oil and Gas Pipeline ProjectsGeneral & Specialized Inspection ServicesSurface Well TestingOffshore Drilling Rig ServicesShallow, Medium and Deep Drilling ServicesFull Maintenance Services of Production Facilities
34Categories for Int’l. Companies (cont’d.) Maintenance of Fire Fighting SystemsSlick Line ServicesDredging WorksMarine Operations ServicesHSE Consultancy ServicesTubular Inspection & Internal Corrosion ServicesMud (Products, Engineering & Logging) ServicesRock Properties & Fluid Analysis ServicesESP, Ultrasonic ILI & Repair of Sub-sea PipelinesIntegrated Security Systems
35e-Tendering Portal www.kockw.com Establishment of KOC e-Tendering with support of MicrosoftRegister and update profile onlineView KOC Tenders and categories of worksDownload Tenders and PQ DocumentsAccess to commercial documentsSecurity and ConfidentialityThe Company encourages companies to get to know KOC and participate in its upcoming TendersKOC looks forward to international companies’ future presence and sharing of business opportunities in Kuwait
36Enhancements to Contracts’ Terms & Conditions KOC carried out series of improvements with respect to its manner of conducting business.Enhancement of KOC’s Lump Sum Turnkey (LSTK) Model Contracts for Major Projects.KOC witnessed increased participation of international EPC contractors in Company’s tenders.The areas for improvement were identified jointly with International Contractors/ Consultants.The Enhanced LSTK model contract introduced in 2006The feedback obtained has been extremely positive.Benefits from increased participation encouraged KOC to pursue wider improvements in Terms & Conditions of Contracts.
37Enhancements to LSTK Contract Model Summary of Enhancements:Sharing of Bidding FeesFEED Verification Pre/ Post Award of ContractImprovement to Bank Guarantees/ Bonding requirement.Enhanced Contractor’s Cash FlowNon-incorporated Joint Ventures / ConsortiaLimitation of LiabilityClear process for VariationsPerformance/ Schedule IncentivesCurrency & Commodity Price FluctuationsEnhanced Claims HandlingAlternative Dispute ResolutionGeneral Improvements:Re-allocation of risks to party best able to control that riskRisks allocated in line with international normsMore ‘user-friendly’ structure, terminology and languageBetter administration
38Alternative Contracting Options Most producers are under pressure to increase production.Many international Contractors are unwilling to bid for projects on a lump-sum turn-key (“LSTK”) basis.KOC has reacted to such market demands.Two (2) phases for the development of the following Four (4) alternative EPC Model Contracts:Phase (I): Re-measurable Model CompletedCost Plus ModelPhase (II): Cost Plus Convertible ModelCost Plus (FEED by Company)Early Production Facilities ModelTwo Envelope Bidding System