Monthly magazine published by Media Relations Team - 14th Feb. 2015

Monthly magazine published by Media Relations Team - 14th Feb 2015

www.kgoc.com

Launching of Nuwaiseeb Port Development Project2

CEO gives a banquet in honor of Ahmadi Governor 4

Global Oil14

KGOC Participates in Kuwait International HSE Conference & Exhibition5

Tareq Al-AdsaniManager Public Relations and Information Technology Group

Dear Colleagues,KGOC continues its development and uniqueness in various fields, especially regarding the care for its employees and its responsibilities towards the society. The company has recently launched a new project, which is Nuwaiseeb Port Development Project, to enhance the civilized face of the country before guests and visitors, in addition to the facilities given to the Company’s employees when passing the land border ports.This project proves the Company’s sincere interest and its tireless striving to do its best to serve the society, and it would greatly improve the level of services provided to the visitors of the country through the land border. In coincidence with the celebration of national holidays of the country, the Company also organized a number of distinctive events in its Spring Camp such as the National Day and Liberation Day ceremony, and the Open Day. These events gained a great approval from the Company’s employees for the keenness of the CEO and the Executive Management to participate and communicate with them on a human level and away from the work routine.

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In his opening speech during the ceremony, Mr. Al-Shammari assured that the Company is implementing this project as a part of its responsibility as an oil company, and on the basis of its belief to be an assistant to the government to provide facilitating services to the citizens, especially that Nuwaiseeb Port is a vital center passed by thousands travelers annually, including the Company’s employees.He pointed out that the aim of this vital project is to facilitate the crossing of cars, buses and trucks, and improve the work environment and other services in the port. In addition to developing the Port’s facilities

During the launching of Nuwaiseeb Port Development Project implemented by the Company Al-Shammari: The project represents a qualitative step in facilitating the passing of Kuwait’s Guests guests.Al-Fahad: KGOC represents the real meaning of the community partnership concept

In the presence of KGOC’s CEO Mr. Ali Al-Shammari, Ahmadi Governor Sheikh Fawaz Al-Khaled Al-Sabah, and Ministry of Interior Undersecretary Lieutenant General Sulaiman Al-Fahad, KGOC held a ceremony to lay the Foundation Stone of Nuwaiseeb Port Development Project, which is implemented by the Company. The ceremony was also attended by a number of ministries leaders and the Company’s Executive Management.

to reflect the civilized image of the most important land ports in our beloved country, and represent a qualitative step in facilitating the land traffic for the guests. He added, “The development of Nuwaiseeb Port is only the product of continuous efforts with leaders of the Ministry of Interior to implement the project in this vital border port, which is considered as a civilized frontage of Kuwait.”He also praised the fruitful cooperation touched by the Company, since the beginning of the idea of the project, from various State agencies, especially the Interior Ministry, and the General Administration of

Customs, which contributed greatly to facilitate the KGOC’s task, and proved the dedication of those agencies to play their national role.KGOC’s CEO also announced, during his speech, that the works in the Port will start this month, to be completed and delivered in the first quarter of 2016.He thanked Lieutenant General Sulaiman Al-Fahad, Major General Anwar Al-Yaseen, and Mr. Khalid Al-Saif, as well as the loyal men of the General Administration of Customs for their tireless efforts and fruitful cooperation with the team of the executing company, Alghanim International Company.Lieutenant General Sulaiman Al-Fahad delivered a speech in which he praised the cooperation of KGOC which represents the profound meaning of the community partnership concept, and its permanent steps to support various security services sectors.

He expressed his deep thanks and appreciation to the noble contribution of KGOC in this vital project which gives an ideal and example of how the effective community participation should be, under the wise leadership of HH the Amir “Humanitarian Leader”, HH the Crown Prince, and HH the Prime Minister to continue the march of construction and giving.The ceremony activities included an explaination by Mr. Mohammed Khaleel, Manager of Engineering Support Department, about the project stages, the time plan to implement it, and its expected results. It also included the signing of the project contract between KGOC and Alghanim International Co., the ceremony of lay the Foundation Stone, and honoring the agencies participated in this project, which included Ahmadi Governorate, the Interior Ministry, the General Administration of Customs, and Alghanim International Co.

Senior Attendees during the ceremony

Al-Shammari & Al-Ghanim during contract signing

Senior Attendees during the laying of the foundation stoneAhmadi Governor’s honoring Ministry of Interior Undersecretary’s honoring

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KGOC’s CEO Mr. Ali Al-Shammari held a lunch banquet in honor of Ahmadi Governor Sheikh Fawaz Al-Khaled Al-Sabah and his entourage at the Company’s Spring Camp.The lunch banquet was attended by DCEOs and a number of the Company’s top officials from the degree of groups managers and team leaders.

Al-Shammari Receives the Canadian Ambassador

KGOC’s CEO Mr. Ali Al-Shammari received HE Canadian Ambassador to Kuwait Ms. Martin Morrow accompanied by the Trade Commissioner Mr. Ra’aed Bishara. It took place at the CEO’s office in the Company’s Main Office.Al-Shammari spoke with the Canadian Ambassador, during the visit, about the Company and its activities, especially in the Onshore and Offshore Joint Operations areas. The two sides also discussed the ways of taking advantage of the Canadian experiences in the oil field through sending the Company’s employees for training in the Canadian oil companies, or recourse to Canadian lecturers to enhance the occupational level of employees, especially the technical specialties such as engineers and geologists.Mr. Al-Shammari also invited the Canadian Ambassador to visit WJO during a visit planned by the Company for a number of diplomats in the next period to see closely the work nature and the technologies used there.

The CEO receives the Canadian Ambassador

Al-Shammari & Sheikh Fawaz Al-Khaled Senior Governorate’s Leaders

Through its participation with a booth and two working papersKGOC Participates in Kuwait International HSE Conference & Exhibition

Under the auspices and presence of the Minister of Oil, State Minister for National Assembly Affairs, Dr. Ali Al-Omair, the Kuwait International HSE Conference & Exhibition titled “We can make a difference to our world” was opened. It was held over two days at Regency Hotel.In his speech during the conference, Dr. Al-Omair pointed out that Kuwait has provided all the support for the raising of all aspects of HSE, and that the State is witnessing a great interest in everything related to the environmental conservation, and expansion of the natural, marine, and wildlife reserves, where the State became the first global country in the proportion of natural reserves compared to the total area of the State.The conference also witnessed the participation of KGOC through working papers presented by Mr. Abdulaziz Dashti, Manager of Risk Management Group, and Mr. Mohammad Abbas, Team Leader of HSS. In addition to its participation with a distinguished booth, which familiarized the visitors with the Company and its activities.

Senior attendees during the opening

Dashti’s participation during the conference Abbas’ participation during the conference

Minister of Oil delivers his speech

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• KGOC has achieved excellent results during the past year on a number of operational, productivity, and environmental levels, as mentioned below:

• Achieving a production rate in the Large Scale Pilot Project to inject steam in the 1st Eocene Reservoir estimated at (1,630) BPD of oil, where the average of steam injection was (7,200) barrels of equivalent steam. As it has initiated in the 3rd stage of Steam Flood Pilot Project of the 2nd Eocene Reservoir (Engineering Studies for the Optimal Choice).

• Drilling 84 new wells, repairing and deepening / re-tracking of (151) wells.

• Applying the Reserves Management Unified System (Wafra Joint fields and Khafji Joint fields) in line with the system of Kuwait Oil Company in reserves management.

• Contracting with Global WesternGeco Company to implement the 3D Seismic Survey Project for the Onshore divided zone between Kuwait and Saudi Arabia, according to the latest engineering ways and methods applicable in this field, which is scheduled to be completed within 2 years and a half.

• Implementing a project to reduce gas flaring in Wafra, and increase the gas quantities exporting to KOC, where gas flaring rate was reduced from 66% to 52%. As the rate of gas quantities exported to KOC reached 14.5 MCFPD.

• Completing the third stage of Engineering Studies for the Optimal Choice in the Central Gas Utilization Unit Project CGUUP.

• Based on the success of multi-horizontal directions pilot drilling in South Fawaris Field, data are studied to develop a comprehensive strategy development plan for the field.

• Signing an understanding memorandum among the KGOC, KNPC and KOC to transport about (40) MCFPD of associated gas of KJO, as well as about (6,600) BPD of condensers for KNPC by KOC.

• Preparing the Procedures Document related to the environmental impact and coordination to take the necessary approvals for a number of environmental projects such as:

1. New lining Pits.2. Environmental Strategy for WJO.3. Central Gas Utilization Project.4. The extension of the new pipeline in Khafji Area.5. Comprehensive environmental studies for the

operations of Wafra Area.• Establishing a crisis management center

equipped with a direct visual communication link

The Most Achievements of the Company During 2014

with KPC, WJO, KNPC and KOC. • Concluding the Technology Transferring

Agreement with Saudi Arabian Chevron to facilitate the exchange and transfer of technology and information between the two partners.

• Establishing risk system for the Company to determine the maximum load of risks and capability to address them, and automatic linking of the unified system with KPC’s Risk Management.

• As a continuation of its efforts in the application of international quality management systems and works operating with required efficiency and professionalism, and based on its belief of the need to achieve the career development and the adoption of the optimal approach to increase performance and improve productivity quality according to the international standards, the Company concluded a contract to acquire ISO Certificate for all departments of the Company during the next year, which is represented by application of quality management systems in different sectors. This matter will provide the highest standards of performance and quality, which will be reflected positively on the progress of work and achieve the goals and aspirations of the Company.

• Developing the KGOC CEO HSSE Award, which is an integrated program highlights the contributions and achievements of the Company’s employees and its contractors in the HSSE field.

• The Company continues its efforts to develop the national technical experiences in the engineering and geological fields through training and on-the-job tasks that enable them to contribute to the important and strategic projects through cooperation with the companies of exploration and production sector.

In the scope of the Onshore 3D Seismic Survey Project implemented by KGOC in the Divided Zone, the Media Campaign Team for the Project, coinciding with the conducting of Survey in Wafra agriculture area by WesternGeco, educated the inhabitants of Wafra about the importance of the project to the national economy, and the requirements of its implementation in areas that may be within private and public properties. The imams and preachers at Wafra agricultural

The Distinctive efforts of the Project’s Media Campaign Team

Board of Directors Members Examine the Developments of Seismic Survey Project

area cooperated with the Media Campaign Team to familiarize the farmers, landowners and inhabitants with the project and urged them during Friday sermons to cooperate with the team. This matter helped the project to run as the scheduled time plan, especially that the Media Campaign Team is working according to thoughtful work plan to educate the inhabitants shortly before entering the executing company’s team to those areas to pave the way to achieve the work on time.

KGOC’s Board of Directors members, led by KGOC’s Chairman Mr. Mohammad S. AbdulWahab, paid a field visit to WJO to examine the developments of Onshore 3D Seismic Survey Project. It was organized by the Company’s Legal Affairs Group.The Board’s members were accompanied by the members of the Executive Management Sheikh Ali Al-Sabah, Deputy CEO of Finance and Administration Affairs, Mr. Hamed Al-Anezi, Deputy CEO WJO, and Mr. Yousef A. Ali, Deputy CEO KJO. In addition to Mr. Bader Al-Harbi, Manager of Legal Affairs Group, a number of the Project contractor’s representatives, and the Project’s employees from WJO.The visit included an explanation, by the representatives of WesternGeco, the contractor, about the implementation stages of the Project through a miniature model simulates the project, its facilities and the equipment used.

A side of the field visit

The Project’s team Media Campaign Team with the masses

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Seismic Survey

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KGOC Sponsors the “Humanitarian Leader” OperettaUnder the sponsorship of KGOC and the presence of Ahmadi Governor Sheikh Fawaz Al-Khaled Al-Sabah, Ahmadi Educational Zone held “Humanitarian Leader” Operetta to celebrate the national holidays. It took place at the Governorate building in Ahmadi.A large number of children from the school students of Ahmadi Educational Zone participated in the operetta, and presented a distinguished show attracted the admiration of the attendees of media and education figures, and senior staff of the Governorate. The Company was represented by Mr. Tareq Al-Adsani, Manager of Public Relations and Information Technology Group, who received the honoring trophy given to the Company by Sheikh Fawaz Al-Khaled.

In the scope of its annual custom and its care for recreational activities towards its employees to reinforce communication among them away from the work environment, KGOC held an Open Day for its HO’s employees. It took place under the auspices and presence of the CEO Mr. Ali Al-Shammari, at the Company’s Spring Camp.In his speech during the Open Day, Mr. Al-Shammari praised the efforts of the Company’s employees which helped the Company to achieve distinguished results and achievements during the last year. As he congratulated the attendees on the occasion of the national days, wishing them to spend joyful time with their colleagues away from the work routine, and to enjoy the Open Day’s activities. It is worth mentioning the Open Day’s program was prepared and organized by the Public Relations Team, which acquired the approval of the Senior Management and the attendees for its varied recreational paragraphs and competitions. As well as the care for security and safety procedures followed in this regard.

Under the auspices and presence of the CEOAn Open Day for KGOC-HO’s Employees

On the occasion of the national days celebrationsKGOC Organizes a Celebration in its Spring CampUnder the auspices and presence of Sheikh Ali H. Al-Sabah, Deputy CEO of Finance and Administration Affairs, and on the occasion of National Day & Liberation Day, KGOC held a celebration for its employees and their families at the Company’s Spring Camp. It took place on Wednesday, 24th February 2015.In his speech, Sheikh Ali Al-Sabah expressed his happiness of the participation of the Company’s employees and their families in this precious occasion for every one lives on this good land, stressing the Company’s keenness to organize such annual ceremony to emphasizes the importance of this celebration to everyone. He also extended his congratulations to the political leadership and exchanged greetings with the attendees, wishing Allah to maintain the joys, celebrations, and stability of Kuwait, year after year.It is worth mentioning that the ceremony included paragraphs and competitions for adults and children, the matter which gained an effective participation and the approval of the attendees.

KGOC Participates in the 20th Economy Makers and Work Opportunities Exhibition

KGOC participated in the 20th Economy Makers and Work Opportunities Exhibition, organized by the Student Training and Alumni Office, at the Faculty of Administrative Sciences, Kuwait University, under the patronage of Sheikh Salman Al-Hamoud, Minister of Information and Minister of State for Youth Affairs. KGOC’s participation came through a distinguished booth included a number of definitional means about the Company and its latest publications to familiarize the students and alumni with the Company’s activities and job opportunities. The exhibition, which was opened, on behalf of HE the Minister, by Assistant Undersecretary for Youth Development Abdulrahman Al-Mutairi, and the presence of Dr. Jasim Al-Mudaf, Dean of the Faculty of Administrative Sciences, was attended by a number of agencies that represent the local labor market from various sectors of the State, such as banking, oil, telecommunications, investment, industry and other sectors.

Colleagues from the Company, KPC and the Associates during the exhibition

A side of the open day The CEO during the prizes’ draw

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He Free space away from the work limits, and a window to have a closer look at the family of KGOC

Hamoud N. Al-ShammariJob Title: Unit Supervisor- Financial Accounts Team.Date of Birth: 20/12/1987.Sign of the Zodiac: Sagittarius.Qualification: Accounting Diploma - Faculty of Business Studies.-Nature of Work?Entry and adoption of the invoices in the system, and settlement of accounts and financial claims among the oil companies.-Your hobbies?Swimming.- How do you spend your day after work?I am social in my nature, so I often communicate with my friends and meet them in Diwaniya.-A nickname you are famous for?Bo Namlan.- Type of films you prefer?The historical films, and my favourite film is Troy.- Your favourite book?The Holy Quran.-How do you form your first impression about persons? Through their actions.- Things you hate?I hate hypocrisy.-What is the red line for you?Dignity.-Your favourite colour?Red.- Your priorities in life?To be a successful head of family.- How do find the career life?It is a pleasant and very good experience, in which I consider my work as my second home, where I should give it a lot of attention.- Your practical ambitions?

To have a notable position in the oil sector.-How do you spend your holiday?I like travelling. My favourite destination is Cairo.- What is your wisdom in life?It is the Quranic verse which says “Whosoever fears Allah, He will appoint for him a way out, and provide for him from where he does not expect”.- Who is your model in life?My father, may Allah prolong his life.- Your favourite food?All types of local dishes, especially Mashbous.-What did you wish to be when you were young?History teacher.

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An Illusory Training to Deal with Fires

WJO’s Steam Flood Team conducted an illusory training on how to use all types of fire extinguishers. It was held in the presence of Mr. Anwar Al Na’ar, Steam Flood Project Team Leader, Mr. Nawaf Al-Harbi, Maintenance Support Supervisor, Mr. Bader Al-Rasheedi, Shift Supervisor, and Mr. Abdullah Al-Ajmi, Fire Department Representative, in addition to a number of the Department’s employees.Mr. Saleh Al-Harbi, HSE Supervisor, coordinated with the Department’s employees and contractors to familiarize them with the initial procedures of rapid dealing with the various types of fires.

Financial Services Group organized a farewell ceremony to Mr. Zaid Al-Shammali, Team Leader of Financial Accounts Team, on the occasion of his retirement.The ceremony was attended by the employees of the Financial Services Group, led by the Manager of the Group, Mr. Helal Al-Mutairi, in addition to a number of the employees in the other groups and teams. They thanked Mr. Al-Shammali for his long career journey, and wished him a happy life full of success and prosperity.

Financial Services Group Says Farewell to Zaid Al-Shammali

A side of the illusory training

Al-Mutairi honors Al-Shammali

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The past two decades witnessed a significant increase in the use of chemical disinfectants in the house works. As well as increasing the use of many chemicals on a daily basis, such as soap, shampoo and other liquids containing chemicals to fight microbes to clean hands, body and hair. The majority of people believe that the use of disinfectants actually lead to full prevention from the transmission of infectious diseases, especially that ads on newspapers and television describe some disinfectants as sterilization materials and have a magical influence to kill all infectious microbes.The fact is that the effect of disinfectants only lead to reduce the level of microbes concentration in any place to the safety degree, but they do not lead to the elimination of all kinds of microbes as the sterilization process does, in which it leads to get rid of all kinds of bacteria. The sterilization process is frequently used in hospitals to prevent the transmission of infection between patients.But no need to worry about this matter, as the recent studies have shown that the natural microbes that inhabit in human skin and live in his environment, play an important role in protecting the body from infectious microbes and reinforce the body’s immunity. At the same time, some researches have shown that there are kinds of these microbes are becoming more resistant to such disinfectants as a result of frequent use and misuse of it.Skin’s Role to Protect us from Microbes:Human skin represents the first line of protection to

Skin Care Cosmetics and their effect on Skin and Immunity

prevent the entry of microbes into the body’s tissues and internal fluids, as the various secretions of the skin and its density prevent the increase of microbes.Here, it is important to know that most of the microbes inhabit in the surface tissue, solid and dead cells of skin, where the sebaceous and sweat glands among the skin layers and their channels flow on the surface of the skin directly, are preventing the evaporation of superfluous water from the skin to maintain the body’s temperature appropriate for surrounding weather conditions. As they help to soften and allay the skin, and prevent adhesion and increase of microbes. Those sebaceous glands secrete oily substance in the skin pores called sebum, which is a mixture of complex fats, cholesterol, proteins and inorganic salts. Two types of bacteria, at least, as the Propionibacterium and Corynebacterium, which are bacteria that live in the skin follicles of about 5 million, destroy fats and convert them to unsaturated fatty acids to prevent the growth of a large number of other types of bacteria and some infectious fungi.The sweat glands also secrete a material called “lysozyme” in the skin pores, which is a substance that prevents some types of bacteria and viruses from invading the skin’s internal tissues. The sweat glands also secrete a mixture of water, salt, urea, ammonia, acids of milk, uric and organic ascorbic which keep the natural skin bacteria that is useful for body. Hence, we can say that there is a common and important homogeneity and coexistence relationship between the body’s natural bacteria and the human skin.

The External Factors and their Effect on the SkinThe human skin exposes to chemical and physical factors, internal and external, such as the exposure to the sun, and the conditions of the external environment and the surrounding atmosphere, such as humidity, and the internal conditions such as drought or diseases. These factors sometimes lead to delicate and invisible fissuration in the skin’s surface layer, which exposes it to an attack from opportunistic microbes that may cause local inflammatory, acne, skin and fungal diseases, eczema, and other diseases that appear on the skin surface, which may sometimes spread to the body’s internal tissues, causing several and serious systemic and vascular diseases.The Effect of some Diseases on the SkinThe human skin exposes, during infection with some diseases such as diabetes and HIV, to an attack from bacteria and opportunistic skin fungi, such as skin surface fungi and Candida fungi. These fungi exploit any weakness in the skin to cause acute or chronic skin diseases.The skin fungal diseases spread among a large proportion of people of all ages around the world, with different ratios, according to their health and living conditions. They appear in a form of spots that change the color of the skin, and cause local redness, itching and sensitivity, where some of them appear and disappear by treatment within a few days, and some become a chronic all the lifetime.The Effect of Daily Care Cosmetics on SkinMany of us may not realize that the external skin care they do and consider as daily routine may cause long

or medium term health consequences according to each case. So, the increase in the use of disinfectants, skin moisturizers, and cosmetics to prevent the body’s sweat smell on a daily and frequently basis may not benefit the skin, but they harm it, especially if the concentration of disinfectants is high, and kill a large proportion of the natural bacteria existed in the skin pores, which will lead, with time, to a settlement of harmful types of bacteria resistant to disinfectants.As the most types of skin and hair cleaning cosmetics spread on the market contain a substance called “Triclosan” or a substance called “Quaternary ammonium compounds”, in addition to the medical alcohol, or other similar substances which operate on the decomposition of proteins and fats. It is important to point out that these materials have a fatal effect on microbes, but they also have toxicity to the human body organs if the concentration exceeds the secure level for use. It is recommended that concentration must not exceed 1%. Health departments concerned with monitor medicines are supposed to examine the components of disinfectant and body lotions, and make sure of the amount of disinfectant added.Finally, recent studies have proven that frequent use of chemical disinfectants in cleaning, and cosmetics that contain a few concentration ratio of antibiotics or antiseptics help the bacteria to develop the resistance against it, and make their usefulness is limited or non-existent with time. Therefore, we confirm that washing hands and body with ordinary soap is enough in most cases to clean the body and prevent infection of harmful microbes, and we also recommend to use skin moisturizers free of any chemical additives against microbes.

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USA: Reducing the capital spending to face oil prices declineThe decline of global oil prices reduced the profits of energy and oil companies in USA and pushed them to announce new plans to reduce their capital spending, inviting the world to accept a new stage of prices decline. But on the other hand, the USA shale oil production kept its rise at the fastest pace since 1972.In this regard, Rex Tillerson, CEO of Exxon Mobil, stressed that the world has to accept the stage of global oil prices decline, especially the US shale oil production has proved to be more flexible than the expectations. This came in coincidence with the company announcement of its intention to reduce its capital spending this year by 12%, despite the increase of its oil production by 7%, in a sign to the companies’ seeking to reduce costs in light of the sharp decline in oil prices.He explained that the reason for the drop in oil prices is due to a decline in demand of China and other countries, with the continued increase in supply, especially from the US market. He pointed out that US oil would be stronger than expected with production continuing to grow despite the prices decline.

Egypt: Sea water pollution due to the break of oil export pipeline A large area of sea water at Egyptian Ras Gharib City exposed to petroleum and marine pollution due to the break of export main pipeline of crude oil.The Egyptian Environmental Affairs Agency, Pollution Fighting in the Red Sea, and Management of the Environment of General Petroleum Company were notified, in which they moved to the pollution area. The environmental agencies dealt with the incident, besieged the area that exceeded of 1500 meters, closed the broken export line from the main outlet, and stopped pumping through the line.

Australia’s First Floating Solar Power PlantIn an initiative which is the first of its kind, Australia is working to construct a floating solar power plant on a wastewater treatment facility in Jamestown south of the country, and it is expected to be up and running by April this year. The plant will float on a wastewater treatment facility in Jamestown, then it will be used to generate the power needed to operate the treatment, and transfer the remaining energy to Jamestown.The plant system will use high density Polyethylene pipelines to achieve flotation process. As a result, the panels will be 57 % more efficient than the solar panels based on land. The plant is considered a perfect system of a country has a dry climate and a large provision of water, where water will keep the solar panels cool and prevent water evaporation by up to 90 % of the surface area covered.