1. Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation Enhancing Reservoir Performance and Production Capability of Divided Zone Onshore Assets Presentation by: Hashim M. Al-Rifaai – C&MD, KGOC Kuwait Oil & Gas Summit & Exhibition February 12th - 15th 2012, Kuwait

2. Agenda World Trends Initiatives Opportunities Conclusions Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation 2

3. Forecasted demand for energy showing a rising trend 3 Global demand for oil is projected to increase from 81.2 mboe/d in 2010 to 101 mboe/d in 2035 – source OPEC World Oil Outlook 2011 World Demand for Oil

4. Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation 4 Agenda World Trends Initiatives Opportunities Conclusions

5. 1.Adopting robust Reservoir Management Strategy - Reservoir Management Framework (RMFW) 2.Improved Oil Recovery (IOR) Pressure Maintenance/Water Injection Projects 3.Enhanced Oil Recovery (EOR) Chemical flooding project Thermal Projects o Steamflood in carbonate reservoirs o Down hole heating for deeper heavy oil reservoir Waterflood in heavy oil carbonate reservoirs 5 Key initiatives for enhancing recovery efficiency and oil production

6. 6 Reservoir Management Framework

7. 7 Benefits OF IOR Projects.  In Wafra –Ratawi Ultimate R.F has been increased from 20 % to 37 % by applying water Injection in phases.  6 % increase in ultimate recovery with water Dumpflood in Humma – Marrat  6 % gain in recovery is expected by water injection in S.F RLS on success of pilot. Improved Oil Recovery (IOR)

8. Chemical Flooding for light oil. Chemical Flood is under evaluation as Post Water Flood EOR 8 Planned Chemical Flood Expected Benefits  Reserves Addition for KGOC with 6 % increase in ultimate recovery.  Technology transfer for implementation in other water injection projects.  Sharing of state of art in EOR technology. Enhanced Oil Recovery (EOR) - Techniques

9. Thermal Projects for heavy and viscous oil 9 Key Message  Large Heavy oil resources exist in Divided Zone.  Ultimate Primary Recovery is expected less than 10 %.  Most of the heavy oil resources can be recovered only by applying appropriate EOR methods  Thermal EOR potential is very significant, with the prospect of recovering additional 35 % of OIIP Enhanced Oil Recovery (EOR) - Techniques

10. Primary Production Studies Cyclic test Small Scale Test Large Scale PilotFull Field Steam Flood 10 Phased Approach for Managing Challenges and Risk Mitigation

11. Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation 11 Agenda World Trends Initiatives Opportunities Conclusions

12.  Fully Explore the Divided Zone area with modern technology (3-D Seismic, Aero Gravity-Magnetic)  Target deep oil and gas potential  Drill appraisal wells to determine field boundaries 12 Huge opportunities have been cataloged to mature benefits of adopted initiatives in Areas of Exploration and Development Opportunities 1.Exploration Opportunities

13.  Full field Steamflood for 1st Eocene reservoir. 13  Cyclic steam stimulation on selected wells of heavy oil reservoirs.  Optimum Development of 2nd Eocene Reservoir in synergy with 1 st Eocene.  Down hole heating for deeper heavy and viscous oil 2.Development Opportunities Opportunities

14. Back pressure reduction – Wafra Asset. Chemical Flooding in Wafra-Ratawi. Suitable EOR process for Wafra Maastrichtian reservoir. Commercial production from SUG - Maastrichtian. Integrated water management. 14 3.Development Opportunities Opportunities

15. Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation 15 World Trends Initiatives Opportunities Conclusions Agenda

16.  KGOC is at the forefront of using leading industry technology in its business to optimize its onshore assets value and enhance reserves.  Opportunity exists to increase Divided Zone mature (Onshore) assets value through implementation of thermal EOR projects for heavy oil; innovative IOR techniques and chemical EOR for light oil.  KGOC endeavor to bring in state of the art technology in the oil and gas sector will result in development of local industry and knowhow. 16 Conclusions

17. Kuwait Gulf Oil Company (K.S.C.) A Subsidiary of Kuwait Petroleum Corporation Enhancing Reservoir Performance and Production Capability of Divided Zone Onshore Assets Thank you