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Page 1: April - June 2012 - Kuwait Oil Company June 2012.pdf · Ahmadi 61008, Kuwait Telephone: 965-2398-2747 ... Al-Zanki, Al-Rushaid and ... Mexico, Oman, Russia and South Africa. Sitting
Page 2: April - June 2012 - Kuwait Oil Company June 2012.pdf · Ahmadi 61008, Kuwait Telephone: 965-2398-2747 ... Al-Zanki, Al-Rushaid and ... Mexico, Oman, Russia and South Africa. Sitting

The Kuwaiti Digest invites newspaper, magazine and trade journal editors to reprint or otherwise make use of articles or illustrations appearing in this issue. Material should be credited and a copy mailed to the Kuwait Oil Company.

The Kuwaiti Digest is a quarterly magazine published by the Kuwait Oil Company (K.S.C.) since 1973.

Produced by Al-Nazaer Printing Press Publishing & Distributing Co. w.l.l.Tel: 24744741 - Fax: 24716993

Editor-in-ChiefKhaled Madhi Al-Khamees

Deputy Editor-in-ChiefAbdul Khaleq Al-Ali

Kuwait Oil & Gas Summit 20128

April - June 2012

Correspondence concerningThe Kuwaiti Digest should be addressed to:Editor-in-Chief, Kuwait Oil Company (K.S.C.)

Information TeamP.O. Box 9758Ahmadi 61008, KuwaitTelephone: 965-2398-2747Facsimile: 965-2398-1076E-mail: [email protected] visit the KOC homepage athttp://www.kockw.com

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Contents

ASSE Organizes 6th International HSSE and Loss Prevention Conference & Exhibition

4th Town Hall Meeting & Exhibition between KOC & Contractors

18 20

KOC Participates in 5th IPTC24

Letter from the Editor 2

Kuwait Hosts International Energy Forum 3

KPC Board Members Visit KOC Sites 6

Kuwait Oil & Gas Summit 2012 8

KOC Organizes First Technology Day 12

Arab Oil & Gas Magazine: Al-Zanki, Al-Rushaid and Hashim among 50 Most Powerful in ME Oil & Gas 16

4th Town Hall Meeting & Exhibition between KOC & Contractors 18

ASSE Organizes 6th International HSSE and Loss Prevention Conference & Exhibition 20

KOC Participates in 5th IPTC 24

Safeguarding Network Data 26

WK Water Handling Lab Implements LIMS 30

KOC’s Environmental Achievements 32

3rd Annual Production Optimization Middle East Summit 34

Enterprise Risk Management 36

Decades of Service 40

Hi-Tech 42

TETRA: TErrestrial Trunked RAdio 44

Meningitis 47

Miswak 48

Kuwait Hosts International Energy Forum

3

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Khaled Madhi Al-KhameesDeputy Managing DirectorAdministration and Finance

2

The first quarter of 2012 has proven to be a very eventful time for KOC. In addition to the various internal events and meetings held throughout the Company, many of our employees were active participants in a number of international conferences that took place here in Kuwait. From the 2nd Kuwait Oil and Gas Summit to the Kuwait Insulation Conference and Exhibition, KOC employees shared their expertise, knowledge and experiences with both a local and international audience. However, perhaps the most important of these events was the most recent one - the International Energy Forum - which attracted ministers of oil from around the world and took place under the patronage of His Highness the Amir of Kuwait at Bayan Palace.

The first quarter was also a time for KOC to celebrate various achievements. A campaign launched within Ahmadi highlighted KOC’s success in reducing gas flaring from 17% to 1.75%, and the environmental and economic ramifications of this extremely significant achievement will leave a positive impact on Kuwait for years to come. In addition, a number of senior KOC officials received international recognition for their contributions to the Company and Kuwait.

Of course, any discussion of the first quarter would by no means be complete without mentioning Kuwait’s National and Liberation Day celebrations. As part of Ahmadi’s annual preparations for the occasion, the city was decorated with its iconic light fixtures and decorations, attracting both local residents and those who live far from Ahmadi to come enjoy the festivities and celebrations.

Naturally, we expect the next quarter to see progress in terms of exploration and development. In order to meet our 2030 Strategy and attain the production goal of 4 million BOPD by 2020, KOC will continue to stay abreast of the latest technologies in the industry while actively pursuing the most efficient methods of exploration and development. At the same time, we will ensure to continue doing everything in our power to protect the environment and the public’s safety.

April-June 2012

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3April-June 2012

Kuwait Hosts International Energy Forum

The 13th International Energy Forum recently took place in Kuwait under the patronage of His Highness the Amir Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah. The two-day event, which brought together some of the world’s most prominent energy ministers and industry leaders, took place from March 12-14 and was held at Bayan Palace and the Regency Hotel, Kuwait.

The goal of the International Energy Forum (IEF) is to foster greater mu-tual understanding and awareness of common energy interests among its members. The 88 Member Countries of the Forum, which includes Kuwait, are signatories to the IEF Charter, which outlines the framework of the global energy dialogue through an inter-gov-ernmental arrangement. The IEF’s bien-nial Ministerial Meetings are the world's largest gathering of Energy Ministers, and the magnitude and diversity of this engagement is testament to the position

of the IEF as a neutral facilitator and honest broker of solutions in the com-mon interest.

During his opening remarks to the IEF Forum at Bayan Palace, HH the Amir said, “Kuwait has actively endeavored to bring constructive dialogue between energy producing and consuming na-tions ever since the forum’s inception in Paris in 1991.” HH the Amir added that Kuwait, which is a member of the Forum’s Executive Council, understood the importance of the forum as a viable vehicle for purposeful dialogue be-tween energy producing and consum-ing nations.

HH the Amir also added that Kuwait places great importance in forums such as the IEF, which he said bring together consuming and producing nations, national energy companies and inter-national oil firms in addition to world organizations that focus on oil and energy issues. It is for this reason, he

said, that Kuwait strongly believes in the exchange of expertise and viewpoints on energy issues.

Kuwait's dedication to dialogue on energy issues is manifested in its visible role in OPEC, which pursues a policy of stabilizing oil prices and supplying energy to international oil markets at manageable prices, which enables pro-ducing countries to utilize oil revenues in their economic growth and future development plans, HH the Amir said.

However, HH the Amir also maintained that the international oil industry may face great challenges in the near future that may be triggered by changes in the price of oil, economic downturns, the threat to safe open-sea navigation and the need for enormous investment in the energy sector to counter increasing demand for energy.

Despite these challenges, HH the Amir noted that Kuwait envisioned a future

KPC CEO Farouk Al-Zanki and Minister of Oil Hani Hussein at the forum

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4 April-June 2012

where oil wealth could be used to realize objectives of sustainable devel-opment and growth, with an emphasis on nurturing human resources. At the same time, however, HH the Amir said that protecting the environment through the judicious use of oil in an environ-mentally-friendly manner and working toward the production of alternative energy sources was also an important priority for Kuwait.

HH the Amir concluded his speech to the international and local dignitaries by asking the participants to seek workable solutions that induce stability in world oil markets. He also asked for further cooperation to be displayed between energy consuming and producing na-tions and between oil companies and energy research centers.

Meanwhile, the newly-appointed Minis-ter of Oil and former Deputy Chairman and Chief Executive Officer of KPC, Hani Hussein, spoke about a range of issues, including the importance of consolidating efforts of energy produc-ing and consuming countries in order to guarantee clean and secure energy to

people around the world.

"We are proud of the fact that Kuwait is hosting this distinctive event which culminates 20 years of dialogue, and is considered the first since signing the forum's charter. We are pleased by this great participation of 600 people who represent 76 countries, 15 international organizations, and 32 oil companies," the minister said.

"The last 20 years have witnessed remarkable development in terms of dialogue between producers and consumers, in which the International Energy Forum had a prominent role in bringing points of view closer and creating a climate of joint understand-ing between producers and consumers on various energy issues," the Minister of Oil said, adding, “The importance of this forum is highlighted by its coincid-ing with essential political and econom-ic developments that influenced the stability of energy markets, oil prices, and global economy recovery.”

“Our interest in dialogue stems from the vital role of energy in all aspects

of our daily life, as well as it being the main engine of the global economy. It is our responsibility to provide clean and secure energy, which requires consolidating efforts of consuming and producing countries to find appropri-ate economic resolutions in order to guarantee the well-being of humans wherever they are," he said.

In an effort to demonstrate its support for energy and environmental issues, the minister told the audience that HH the Amir recently announced that Kuwait would donate $150 million to support a program that will finance scientific research related to energy, the environment, and climate change.

In addition, the Minister of Oil also said, "Our vision is to use our oil wealth for sustainable development, with some of these main goals being the guarantee of a promising future for our people to im-prove their professional and educational capabilities. At the same time, we will work on protecting the environment and reducing climate change."

At the conclusion of his speech, the

International delegates participated in the forum

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5

minister said, “We face big challenges. Resolutions may be difficult, but they are not impossible. Therefore, we wish to take this opportunity to propose resolutions and mechanisms that will contribute in stabilizing energy markets and create an environment of trust that will boost cooperation between produc-ing and consuming countries, as well as oil companies and scientific research centers for the good of all human be-ings."

After the opening remarks and initial speeches, the International Energy Forum was divided into four main ses-sions.

The first session was titled “Meeting Future Energy Demand: Planning and investment for the long-term.” During this session, ministers were invited to discuss desirable developments of all energy sources and associated energy investment requirements that can lead to the achievement of a more sustain-able energy mix.

The second session was titled “Energy markets: Mitigating volatility.” During this session, ministers were invited to discuss developments in data transpar-ency, energy market and volatility issues since the 12th IEF and to offer guidance

April-June 2012

on priorities for the future.

“Achieving Environmental and Social Sustainability: Lower Emissions and Access for All” was the title of the third session, and ministers were invited to discuss ways of achieving global energy security in a way that is compatible with environment preservation and climate change mitigation.

The last session was titled “The Global Energy Dialogue: Charting the Fu-ture of Energy Cooperation.” During this session, Ministers were invited to discuss how the implementation of the IEF Charter could help strengthen the producer-consumer dialogue, nar-rowing the differences among energy producing, consuming and transit Member States on global energy issues and promoting a fuller understand-ing of their interdependency and the benefits to be gained from cooperation through dialogue among them, as well as between them and energy-related industries.

About the IEF

The IEF, which counts member states from all six continents and accounts for 90% of global supply and demand for oil and gas, is unique in that it compris-

es not only consuming and producing countries of the IEA and OPEC, but also Transit States and major players outside of their memberships, including Argen-tina, Brazil, China, India, Mexico, Oman, Russia and South Africa. Sitting alongside other important developed and devel-oping economies on the 31 strong IEF Executive Board, these key nations are active supporters of the global energy dialogue through the IEF.

The IEF is the neutral facilitator of informal, open, informed and continu-ing global energy dialogue. Recognizing their interdependence in the field of energy, the member countries of the IEF cooperate under the neutral framework of the Forum to foster greater mutual understanding and awareness of com-mon energy interests in order to ensure global energy security.

Through the Forum and its associated events, IEF Ministers, their officials, energy industry executives, and other experts engage in a dialogue of increas-ing importance to global energy security.

The IEF and the global energy dialogue are promoted by a permanent Secretariat of International Staff based in the Diplo-matic Quarter of Riyadh, Saudi Arabia.

A group photo of the participants

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6 April-June 2012

Members of the Board from KPC recently visited a number of KOC sites in the accompaniment of Chairman and Managing Director Sami Al-Rushaid. A number of DMDs and managers from South and East Kuwait were also in attendance during the daylong tour which took KPC officials to a number of sites, including Rig SP-185 at Burgan Oil Field and various production facilities throughout the Company.

Members from the visiting delegation included the DMD for Council and Committee Affairs who is also the KPC Board Secretary, Bader Al-Sharrad. Other delegation members included Sheikh Dr. Khalifah Al-Athbi Al-Sabah, Saad Al-Wasmi, Abdulwahab Al-Wazzan and Ahmad Al-Adsani.

While on their visit, members from the delegation listened to detailed explanations of the sites from KOC officials. For their part, the KPC officials expressed their satisfaction with the capabilities and progress of KOC

facilities and personnel.

During the tour, KOC officials told the visiting delegation about the achievements and progress the Company had made in relation to the 2030 Strategy. They were also briefed on the challenges facing KOC and the Company’s plans to implement solutions that will make the realization of shared goals between KPC and KOC a reality.

The visiting delegation began their tour at Rig SP-185 in Burgan where the Manager for Development Drilling Group, Ayad Al-Kandari, made a detailed explanation about the company’s oil fields and wells. He also provided insight into the geological features of Kuwait and provided an overview of the costs associated with oil wells at different stages and the preparations needed for each well. Al-Kandari also explained that some operations require the involvement of local and international expertise throughout various stages. Members of the delegation expressed their interest in the information provided by the Development Drilling Group Manager, who reminded them that Burgan Oil Field is the second largest field of its kind in the world and that it is still one of the largest producing oil fields in the world despite it first being tapped for oil in 1938.

At Gathering Center 19, the Manager of Operations (East Kuwait), Emad Sultan, briefed the delegation about the

KPC Board Members Visit KOC Sites

KOC officials and KPC board members meet at the Kuwait Oasis

PG Manager Shafiqa Mubarak delivers a presentation

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7April-June 2012

gathering centers throughout KOC and the way they operate. Sultan told the delegation that the Gathering Centers have been equipped with the latest technologies that allow staff to keep track of and monitor developments in the fields around the clock.

Meanwhile, Planning Group Manager Shafiqa Mubarak delivered a presentation about KOC’s strategy which highlighted the achievements and challenges that lie ahead for the Company. Also, Planning Team Leader (WK) Rima Al-Awadhi delivered a presentation to the visiting delegation about a project aimed at improving maritime facilities.

In a statement he made during the tour, Abdulwahab Al-Wazzan, a KPC board member, described the company’s facilities as outstanding. Regarding his impression of the tour, Al-Wazzan maintained that one could only appreciate the efforts of those in the field after they actually became acquainted with the sites. Al-Wazzan also commended the tireless efforts of the top management from KOC and expressed his admiration for the Kuwait Oasis, which was constructed in the heart of the desert on a location that was previously environmentally devastated during the Iraqi invasion of Kuwait.

Meanwhile, members of the KPC delegation welcomed information they received that maintained Kuwait’s oil production had exceeded 3 million barrels per day. The achievement of this milestone, they said, puts KOC on track to the production goal of 4 million barrels of oil per day by 2020. The next step of this process would be to maintain those levels until 2030 in order to achieve the stated KPC strategy.

The delegation also expressed satisfaction with the presence of Kuwaiti manpower at various sites throughout Kuwait, including female engineers who work in the fields. For his part, C&MD Sami Al-Rushaid stated that KOC management was happy to ensure the visiting delegation visited important locations throughout KOC and was

provided with relevant information about current KOC projects and future goals. C&MD Sami Al-Rushaid also affirmed the company’s commitment to

health, safety and the environment and assured the delegation that the wellbeing of KOC employees was one of the Company’s top priorities.

DDG Manager Ayad Al-Kandari delivers a presentation at Rig SP-185

Officials were given a tour of the GC-19 Control Room

A group photo of KPC board members and KOC officials at Rig SP-185

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8 April-June 2012

KPC recently hosted its second annual Oil and Gas Summit at the Regency Hotel from February 12 – 15. The summit, which is Kuwait’s largest conference of its kind, builds on the success of KPC’s inaugural event of the same name which was held in 2011. This year, however, the Oil and Gas Summit also featured an exhibition which ran parallel to the conference which displayed oil industry-related services offered by both local and regional companies. In addition, the exhibition also featured a number of technical sessions where presentations were given from those within the industry.

KPC CEO Farouk Al-Zanki and other senior officials from Kuwait’s oil industry inaugurated the opening of the exhibition on February 12 and were given a tour of the booths and stands that were set up for the occasion. The following morning, the KPC CEO offered his introductory remarks to the audience and outlined KPC’s current and projected operations, which included a discussion of KPC’s Strategic Plan for 2030. In his speech, Al-Zanki maintained that “Oil and gas will continue to play a major role in global energy needs,” and added that “Oil dependency will continue past the year 2030.” However, the CEO also noted

that although oil is the country’s most important resource, “Kuwait must consider diversification for different sources of income.”

A brief outline of the important points the KPC CEO discussed which set the tone of the conference are as follows:

• In addition to regular operations, KPC will continue to work towards the reduction of emissions for a cleaner environment for future generations.

• KPC will focus on upstream operations with the goal of increasing production by 125,000 barrels annually until the 4 million BOPD target is

Kuwait Oil & Gas Summit 2012

KOC Chairman Sami Al-Rushaid and KGOC Chairman Hashim Al-Rifaai on the opening day of the summit

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9April-June 2012

reached by 2020.

• As oil and gas operations expand, a focus on operational excellence must be implemented in order to avoid unnecessary maintenance costs and loss of production.

• Kuwaiti nationals will continue to be recruited; however, highly qualified and experienced professionals are needed for KPC’s future goals, which necessitates the need to also hire expatriates as there are not enough Kuwaitis to be recruited.

• The Strategic Plan for 2030 has a focus on the human

element: Nationals will be recruited, trained and have their skills developed while creating an environment that encourages retention and the creation of loyalty.

• Joint work throughout KPC subsidiaries will be encouraged in order to enhance better cooperation, knowledge transfer and best practices.

• The adoption of new technologies will continue as they become available.

• Knowledge sharing and cooperation among oil companies, governments and other sectors will be necessary

for the industry to flourish and achieve its full potential.

Following the KPC CEO’s message to the audience, KOC Chairman & MD Sami Al-Rushaid hosted a session titled “Optimizing Kuwait’s Resource Potential.” Before introducing the speakers, Al-Rushaid delivered a speech to the audience titled “New Solutions for the Energy Balance in Kuwait.” In his talk, the KOC Chairman discussed the future challenges facing Kuwait’s energy needs, particularly in the area of energy consumption from a growing population.

“In the past five years, energy consumption in Kuwait has grown by 1.5% annually. However, this

KPC CEO Farouk Al-Zanki inaugurating the exhibition

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10 April-June 2012

is expected to grow to an annual rate of 2.8% in the coming years,” Al-Rushaid said, adding that by 2030, energy consumption in Kuwait was “Expected to reach the equivalent of 1 million BOPD.”

Supplying this energy for a future population, he said, will be a major challenge for Kuwait. However, in order to do this, KOC has plans to increase its production from 3 million BOPD to approximately 3.65 million BOPD by 2020, and then sustaining this production through the year 2030. However, the KOC Chairman also noted that in order to fully supply Kuwait’s future energy needs, several sources of fuel are needed, which include non-associated gas, associated gas, and the refining of heavy oil. Even then, local gas production will not be adequate for Kuwait’s needs, and Al-Rushaid maintained The summit attracted both regional and international guests

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11April-June 2012

throughout all its operations, noting that “Technological applications will be critical in optimizing oil and gas from new and existing reservoirs.” The Chairman also added that a new project launched by KOC, the Kuwait Integrated Digital Fields, will allow oil production to be increased by some 7%, which he said represents a fine example of how technology can play a major role in facilitating an efficient increase in oil production.

Al-Rushaid then introduced a panel of speakers who spoke about ways in which Kuwait can optimize its oil resources. KGOC Chairman Hashim Al-Rifaai was one of the speakers and maintained that future production in Kuwait will see the increased use of Improved Oil Recovery (IOR), which includes water injection to increase production. Meanwhile, the Shell Vice President of Technology

and Production for the MENA Region, John Barry, maintained that cooperation and continued investment in the region’s oil and gas operations are crucial, especially considering that “The MENA region will be as big of a gas market as Europe in 10 years.”

During the course of this year’s Kuwait Oil and Gas Conference, many of the oil industry’s leading figures were able to share their outlooks and projections for the future of gas and oil production in the region and beyond. The exhibition, on the other hand, proved to be a very valuable addition to the event as industry leaders and specialists were able to come together under one roof and get a glimpse of what the future may hold for oil and gas.

that Kuwait will continue to rely on the importation of gas on a seasonal basis – in particular the summer months when air conditioning usage is at its highest.

Al-Rushaid noted that KOC’s future role will be to continue producing oil at Burgan Field while developing oil in other areas of Kuwait in addition to exploring for new sources of oil and gas. He maintained that the discovery of 25 trillion ft. of gas in 2006 was encouraging and that gas production in Kuwait is set to increase in the future. The advent of new drilling technologies and vertical and horizontal drilling techniques will aid in KOC’s objective of producing more energy to meet KPC’s Strategic Plan for 2030, he said.

The KOC Chairman also highlighted the importance of adopting the latest technologies

The KPC CEO and KOC Chairman listen to a presentation

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April-June 201212 April-June 2012

Under the auspices of KOC Chairman and Managing Director, Sami Al-Rushaid, the Research & Technology Group (R&T) recently organized KOC’s first Technology Day. The event, which was attended by numerous guests and a large number of KOC employees, included a presentation of technical papers and information regarding projects jointly implemented by Research & Technology and other groups within the company.

The KOC Technology Day was the first event of its kind organized by the company and demonstrates the important role that modern technology plays in the oil industry. Because many of the technological tools used in the oil industry today are very different than the tools used in the past, it is extremely important for

large companies like KOC to adapt with the times and adopt new methods for oil exploration and production. In addition to making many of KOC’s operations easier and more efficient, advances in technology can do much more than simply streamline oil exploration and production.

One of the more advantageous benefits of newer technologies is that many leave a smaller footprint on the environment – in other words, they help reduce waste and decrease the amount of pollution generated from older technologies. In addition to making operations cleaner and more efficient, there is also an economic advantage to newer technologies in the sense that they can cut costs by cutting down on the time needed to conduct tasks or introduce entirely

KOC Organizes First Technology DayAl-Rushaid: Modern technology is the engine of

sustainable development.

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April-June 2012 13April-June 2012

new – and less expensive – methods of exploration and production.

In his address to the audience, Al-Rushaid asserted that technology plays a crucial role in improving performance and enhancing operations within KOC. This, he maintained, was especially true in light of the mounting challenges facing the oil and gas sector today.

“Our company has invested heavily in optimizing recovery from existing reservoirs and capturing the potential of new frontiers. Production to meet demands with the lowest cost also remains a formidable challenge to deal with, because this involves a delicate balancing act,” the Chairman said, adding, “As such, we cannot meet these challenges without an aggressive plan of embracing and implementing technology.” The Chairman also maintained Research & Technology as being a key component of the 2030 Strategy for KOC.

The Chairman and Managing Director went on to disclose that KOC is in the process of constructing a new Research and Development Center that will serve as key milestone in the company’s path toward utilizing and making the most of the most current technologies. The 250,000 sq m center will be able to accommodate at least 350 scientists. “In line with our vision, this will lead us to sustain our leadership in Kuwait and become a GCC leader in the provision of upstream technology solutions,” the Chairman told the audience.

After the KOC Chairman delivered his remarks, Research

& Technology Manager Dr. Adel

Al-Abbasi took the stage and

outlined the objectives of the

KOC Technology Day as follows:

• The adoption of new

technologies in order to

meet the fifth strategic goal

of the 2030 Strategy while

creating awareness of the

importance of research related

to Research & Technology

• To encourage employees to

publicize their achievements,

R&T Manager Dr. Adel Al-Abbassi addressing the audience

KOC officials at the event

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14 April-June 2012

share their experiences, and

engage in teamwork within

KOC and outside the company

• The creation of a structure to

reward successful employees

Al-Abbasi also briefed the

attendants on the nature of future

Technology Days and affirmed

the group’s commitment toward

organizing the event at least once

every two years, adding that

future events will hopefully be

broader in scope and vision.

A brief recap of the important

points covered during KOC’s First

Technology Day:

•Technologyenablesusto

improve performance and

enhance operations in light of the

challenges we face

•KOCisintheprocessof

building a new Research and

Development Center that will

serve as a major milestone for the

company

•KOChasmademany

achievements in reservoir

management and has kept abreast

of advancements in technology

•Thecompanyisveryaware

of its role in society and is

keen to apply new technologies

that will help it live up to its

responsibilities toward the

environment

•MariamAl-Saeed,Team

Leader - Research & Technology

Subsurface Team: Our internal

goal for KOC includes the

promotion of understanding and

cooperation among staff, which

extends to the sharing of valuable

technological information.

CIT Manager Hisham Al-Nouri receives a certificate from the KOC C&MD

TL (FD-Gas) Qasem Dashti receives a certificate from the KOC C&MD

Manager, Fields Development Group (WK) Hasan Ali Bunain receives a certificate from the KOC C&MD

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15April-June 2012

Ladies and gentlemen,

It gives me great pleasure to welcome you to the KOC Technology Day. The dedication of this day is a clear projection of our recognition that maximum deployment of modern technology is the main drive for sus-tained growth and development.

Technology is crucially important to improve performance and enhance operations in light of the mounting challenges facing the oil and gas sec-tor. Our company is heavily invested to optimize the recovery from exist-ing reservoirs and capture the potential of new frontiers. Production to meet demands with the lowest cost also remains a formidable challenge to deal with, because this involves a delicate balancing act.

As such, we cannot meet these challenges without an aggressive plan of embracing and implementing technology.

Research and technology constitutes a key component of KOC 2030; it clearly imposes the importance of technology as it is the fifth strategic objective. We are now steadily moving from knock-door technology to a full management and process-oriented technology.

As a matter of fact, we are in the process of building a new Research and Development Center which will be a key milestone in this path. At least 350 scientists will be working in this 250,000 square meter center. And in line with our vision, this will lead us to sustain our leadership in Kuwait, and be one of the leaders in the GCC, in providing upstream technology solutions.

KOC has registered numerous achievements in the technology domain, notably projects such as KwIDF, Sahala, and most advanced reservoir characterization and management technology.

As much as we are eager to implement new technologies, we are corre-spondingly mindful of our responsibilities toward the environment. For this reason, KOC will continue to strictly adhere to its HSE regulations and standards.

Today will illustrate the value created by the alignment of strategy, people, and technology.

I do encourage all the participants to share experience and best prac-tices through the day to deliver the advancement of the Company as a whole.

With this note, I am pleased to declare the Opening of KOC Technology Day.

Thanks for your kind attention.

The Chairman's Opening Message

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Arab Oil & Gas has selected

KPC CEO, Farouk Al-Zanki,

the Chairman and Managing

Director of KOC, Sami Al-

Rushaid, and DMD (NK),

Hosnia Hashim, as among

the 50 most influential

personalities in the oil and

gas industry in the Middle

East.

In the December issue of Arab

Oil & Gas, the magazine stated

that despite taking over KPC as

CEO at an uncertain time for

and a long career at the Kuwait

Oil Company before that.

Al-Zanki has the weight of an

expansive government fiscal

program and some delayed

projects to carry, at an uncertain

time for global oil demand and

prices.

In order to continue to meet its

ambitious production capacity

growth target and increasing

domestic demand for electricity

feedstock, KPC will need to

shorten project approval times

global oil demand and prices,

Al-Zanki had still managed to

implement numerous mega

projects that had been in the

planning stages for some time.

Below is an excerpt of what

Arab Oil & Gas published about

Al-Zanki:

“Farouk Al-Zanki has been at

the top of KPC since October

2010 after a three-year stint as

Managing Director for Refining

and Chairman of Kuwait

National Petroleum Company

Arab Oil & Gas Magazine: Al-Zanki, Al-Rushaid and Hashim

among 50 most powerful in ME Oil & Gas

16 April-June 2012

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and build on the production

boost spurred by OPEC’s

meeting in June.”

In commending KOC Chairman

and Managing Director Sami Al-

Rushaid’s efforts, the magazine

noted that the Chairman and

Managing Director played a

pivotal role in the recent surge

in oil production to a decade-

long high of 2.9 million barrels

per day. It added that KOC

clearly rose to the challenge

in the wake of OPEC’s June

meeting, where a decision was

made to boost production.

Consequently, the country now

boasts production capacity of 3.5

million barrels per day.

Furthermore, the magazine

pointed out that KOC’s Deputy

Managing Director for North

Kuwait, Hosnia Hashim, had

effectively contributed toward

the development of Kuwait’s

upstream sector because of

the leading positions she has

assumed.

The material below was

published by Arab Oil and Gas

about KOC’s DMD for North

Kuwait:

"Hashim joined Kuwait

Oil Company in 1982. Her

experience was developed

as a petroleum and reservoir

engineer, and includes extensive

contributions to the Kuwait

upstream business, having

held diverse and challenging

leadership positions in Kuwait

Oil Company, spanning from

reservoir management activities

to corporate-scale projects.

Hashim’s main project for KOC

is developing its North Kuwait

assets to produce 1 million

barrels per day by 2014, from

around 750,000 bpd at present.

KOC has been ramping up

production since the summer,

taking an active role in calming

turbulent oil markets with higher

production."

Arab Oil and Gas Magazine was

launched some 45 years ago by

the Dubai-based Arab Petroleum

Research Center (APRC). It is the

first monthly magazine to cover

the hydrocarbon industry in all

the countries of the Middle East

and North Africa.

The Arab Petroleum Research

Center (APRC), founded in 1965,

is an independent organization

that conducts studies and

releases publications on the oil

and gas industry which cover the

Middle East, North Africa, Sub-

Saharan Africa and the Caspian

Sea region. APRC also acts as a

consultant to Arab oil producing

countries and international oil

and gas companies.

17April-June 2012

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Meanwhile, our aim is to maximize the non-associated gas production in support of the energy requirements for the State of Kuwait while reducing gas flaring to the absolute minimum in support of the State’s environmental objectives,” the C&MD said, adding, “our endeavor is to conduct dealings with all contractors, suppliers and of-ficials in an ethical manner that meets all relevant KPC Policies and Legal and State Regulative requirements. We seek to develop a strong relationship with them by complying with KOC’s high standards and maintaining a good reputation. We also seek to employ the latest in technology wherever possible. In addition, it should also be noted that communications with contractors and suppliers during the period of con-tractual negotiation is always handled objectively.”

The KOC C&MD also said that he looked forward to a renewed com-mitment to HSE, which is especially

The 4th Town Hall Meeting and Ex-hibition between KOC & Contrac-tors was held recently in Ahmadi. The event, which occurred on March 18th and 19th, took place in two tents erected especially for the occasion across from the Unity Center, with the main topic of discussion focusing mainly on the HSE policies of both KOC and its various contractors.

In a break with the traditional order of events that occur at most meetings, conferences and exhibitions within KOC, the first day of the program opened with a brief HSE message from Faris Al-Mansouri, Team Leader of the Safety Team. His remarks regarding the importance of HSE within KOC served as a precursor and set the tone for the theme of this year’s Town Hall Meet-ing.

In his opening speech to the audience, C&MD Sami F. Al-Rushaid quickly as-serted that KOC “has considered HSE

as a future investment for sustainable business growth.” He also added that “in a real sense, productivity can only be achieved when safety, security and environmental protection are used as a long-term business strategy.”

The KOC Chairman went on to say that the Company believed all HSE incidents to be preventable if compli-ance with regulatory and procedural requirements were followed. He also noted that a competent and skilled workforce will do much to further these aims. This, he maintained, was one of the reasons why KOC places great emphasis on a trained work-force that is supplied with appropriate equipment and protective gear that is watched over by competent supervi-sors.

“Our prime objective is to remain a reliable supplier to our customers and optimize the integrated value chain through the growth of techni-cal capability and operating capacity.

4th Town Hall Meeting & Exhibition between KOC & Contractors

Event focuses on HSE

Senior KOC officials taking questions from the audience

18 April-June 2012

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relevant given the fact that many large KOC projects have been or are in the process of being implemented.

In his concluding remarks to the audi-ence, the C&MD said that KOC was “striving to expand the Company’s accomplishments and image to achieve regional leadership on the HSE front.” He also said that contractors affiliated with KOC were helping the Com-pany by “enhancing productivity with safety.”

Following the C&MD’s speech, the Manager of the Commercial Affairs Group, Jasser Al-Jasser, took the stage and provided some information about KOC’s involvement with contractors. The contractors, he said, consisted mainly of local businesses, and KOC holds some 670 contracts for various services. The manager went on to say that KOC shares a large portion of its business with its contractors before he opened the floor for the next speaker.

Team Leader from the Safety Team, Faris Al-Mansouri, took the stage to deliver his presentation following the brief speech by the Manager of the Commercial Affairs Group. The TL began by reminding the audience that one of the objectives for this year’s Town Hall Meeting was to share HSE performance and expectations. The current fiscal year, he said, has witnessed an improvement in HSE performance from a statistical point of view. The TL maintained that he would like to maintain this trend and improve on it further.

Although HSE has improved on the whole throughout KOC, the TL reminded the audience that there is always room for improvement. “We are aware that risk-based training is one of the most effective tools to improve the competency and skill of workers. For the sake of healthy and sustained business growth, you must have an established training plan for your employees. Moreover, training is also an investment for smooth business progress,” the TL said, adding, “KOC has established the HSE Induction Center, where basic awareness on HSE issues is provided to KOC employees and Contractors.”

On the second day of the Town Hall

The view from inside the tent

Senior KOC officials receive a demonstration from one of the exhibitors

The participants listen to the opening remarks

Meeting, a number of speakers from various companies that do contract work for KOC delivered presentations. The majority of these presentations dealt with issues regarding the contrac-tors’ HSE policies and the HSE policies of KOC. Many of the speakers pointed out that KOC and its contractors work

closely with each other in regard to HSE and that both parties share many opportunities to learn and gain experi-ences from each other, which is a trend that will continue into the future for as long as KOC works closely with its various contractors.

19April-June 2012

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20 April-June 2012

The Kuwait chapter of the American Society of Safety Engineers (ASSE) recently organized the 6th International Health, Safety, Security, Environment (HSSE) and Loss Prevention Conference & Exhibition at the Radisson Blu Hotel. The meeting is one of the largest of its kind in Kuwait.

The conference was held under the patronage of H.E. Dr. Mohammed Abdul Mohsen Al-Busairi, who is the former Minister of Oil and Minister for Parliament Affairs and Chairman of the KPC Board of

Directors, State of Kuwait.

The main objective of the conference was to promote methods that protect health, safety, security and the environment for industry professionals and the general public. The theme of the conference was titled “HSSE – Sharing Excellence” and featured a forum where professionals from various industries, institutions and government agencies could share their personal experiences, technological advancements in their respective fields, and innovative approaches that may

aid in the learning process and development of other professionals.

Fadhel Al-Ali, Chairman of the Organizing Committee of the conference and founding member of the Kuwait chapter of ASSE, welcomed the distinguished dignitaries and professionals from various industries and organizations from Kuwait and abroad.

Meanwhile, Fahad Al-Ajmi, Kuwait National Petroleum Company Chairman, inaugurated the conference and exhibition and

ASSE Organizes 6th International HSSE and Loss Prevention Conference &

Exhibition

KNPC Chairman Fahad Al-Ajmi delivers the inaugural address

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21April-June 2012

Senior officials at the conference

addressed the professionals in attendance while highlighting the importance of the event.

Following the inauguration, Subba Rao Palagummi, President of the Kuwait Chapter of ASSE, briefed the audience on the efforts put forth by the organization and also discussed ASSE expectations for the conference.

The floor was then given to Terrie Norris, President of ASSE-USA, who said she appreciated the Kuwait chapter of ASSE for organizing an event that “was sure to benefit industry professionals and the community at large.” She also maintained that in addition to benefitting HSSE professionals, the conference would do much to bring pride to the State of Kuwait.

Ujwal Ritwik, President of PDC Organizing Committee of the Conference, then provided an overview of the conference and highlighted the untiring efforts

The KNPC Chairman receives a demonstration

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22 January-March 2012

Health, State of Kuwait, Terrie S. Norris, CSP, ARM, President, American Society of Safety Engineers, and Vincent R. Miller Jr., CSP, CPSI, Region VI, Vice President American Society of Safety Engineers, USA.

During the conference, the Kuwait Chapter of ASSE introduced the Chapter Safety Professional of the Year (SPY) Award and Chapter Longevity Award in order to recognize individuals who have dedicated and contributed to the success of the chapter. N. Vasudevan, Vice President of the chapter, spoke briefly about the SPY Award. Subba Rao, President of the ASSE Kuwait Chapter then spoke about the Longevity Award.

Mohammad K.S. Mohiuddeen, Convener, PDC Organizing Committee, former President and Advisory Committee Member of ASSE - Kuwait Chapter, was honored with the Chapter Safety Professional of the Year Award

put forth by dedicated members and the support extended by the sponsors and other affiliated organizations. He also thanked the Advisory Panel Members for their support and contributions.

The keynote addresses were given by Adel Al-Munifi, Senior Executive for Corporate Communications & Client Affairs, EQUATE, which was the main partner for the conference, and Menahi H. Al-Anezi, HES F&S Manager, Saudi Arabian Chevron, the platinum sponsor. The sponsors and exhibitors were then recognized during the program for the support they provided that contributed to making the event a success.

The platinum sponsors for the conference included Kuwait Petroleum Corporation, Ansell, Saudi Arabian Chevron, Security Decision Follow-Up Committee (SDFC) and Petrofac. The Gold Sponsors were Petroleum Coke Industries, while the Silver

Sponsors were IMCO & AcuTech Consulting.

Mohammad K. S. Mohiuddeen, Convener, PDC Organizing Committee, then thanked all the dignitaries, HSSE professionals, exhibitors, session chairs, media, speakers and the endorsing organizations for their support and encouragement.

Special thanks was also given to the Advisory Panel Members, which consisted of Eng. Bader Al-Khashti, the Managing Director, Research & Development & HSE, Kuwait Petroleum Corporation, Major General Jassem Al-Mansouri, the Director of the Kuwait Fire Service Directorate, Eng. Hussam Al-Kharafi, Chairman, Kuwait Society of Engineers, Eng. Ahmad Al-Jemaz, Deputy Managing Director, SHU – Refinery, Kuwait National Petroleum Company, Dr. Ahmad Al-Shatti, BMS, MBBS, MSc, FFOM, Director, Occupational Health Department, Ministry of

PDC Organizing Committee Chairman Fadhel Al-Ali receives an award

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23January-March 2012

(SPY Award) for his outstanding contributions to the chapter and to the field of HSE in general. Mohiuddeen, a Certified Safety Professional with 26 years of experience in the oil Industry, is currently working as a Safety Engineer with the Corporate HSE Group at Kuwait Oil Company.

Fadhel Al-Ali, Chairman – PDC Organizing Committee and Chairman of ASSE – Kuwait Chapter, was honored with the Chapter Longevity Award for his outstanding contributions and support for the chapter during the last decade. He is also a Founding Member of the ASSE Kuwait Chapter and Former SHE Manager (Safety, Health and Environment) of Kuwait Petroleum Corporation. Presently, Fadhel Al Ali is the Manager of HSE & Support Services at Petroleum Coke Industries Company.

During the conference, more than 20 exhibitors showcased

their health, safety, security and environmental products and services. Some of these products and services included personal protective equipment, consulting services, training programs or services, computer assisted recordkeeping and new and innovative ideas for the HSSE field.

During the second and third day of the conference, more than 60 technical papers were presented by experts from Kuwait and abroad which focused on Fire Safety, HSE Management, Loss Prevention & Business Continuity, Occupational Health and Safety, Process Safety, Facility Security, the Environment and Sustainability.

In addition, four exclusive symposiums were organized which ran parallel to the conference. These symposiums focused on such topics as the Green Building Program in Kuwait and its challenges, the Role of Security for Emergency and Disasters,

HSE Regulations in Kuwait and

Corporate Social Responsibility.

Four training workshops on HSSE

issues were conducted as part of

the pre-conference workshops and

were attended by Health, Safety

and Environment professionals for

their personal growth and benefit.

The concluding ceremony was

held on December 1, 2011 at

Al-Hashemi Hall and featured

feedback from the audience and

presenters, a draw, and special

recognitions for exhibitors and

volunteers.

In total, the conference hosted

approximately 600 participants and

provided a unique opportunity

for participants to share and learn

about various aspects of HSSE

while promoting Health, Security

and Environmental protection.

Senior oil officials at the inauguration ceremony

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24 April-June 2012

is given the opportunity to tap into the knowledge and experiences of competent players from the oil industry. This transfer of information and sharing of knowledge, he said, was one way for KOC to improve various aspects of work within the Company, such as fostering the growth of an experienced and knowledgeable workforce.

Members of the KOC delegation took part in a number of the presentations that were given during IPTC. Fields Development Team Geologist Bashar Al-Anzi and Senior Geologist Dipankar Ghosh both presented papers during the conference that dealt with work conducted by KOC around the Greater Burgan areas of operation.

One of the papers was titled “An Innovative Approach to the Reconstruction of Relative Sea Level for Burgan-Wara Complex in Greater Burgan Field” and presented a new approach in reconstructing the

KOC recently took part in the 5th International Petroleum Technology Conference (IPTC) from February 7-9, 2012 at the Bangkok Convention Center in Thailand. The event was hosted by Thailand’s national oil company, PTT Exploration and Production Public Company Limited (PTTEP), which is a subsidiary of PTT Group. The event attracted more than 3,000 delegates who represented 57 countries and more than 600 organizations.

The KOC delegation to Thailand was led by DMD of Administration and Finance, Khalid Al-Khamees, with a number of other KOC officials and employees attending the event. The DMD maintained that KOC, as an international oil company and regional leader, was keen to attend global forums such as IPTC. He maintained that conferences like IPTC provide an arena where KOC

KOC Participates in 5th IPTCDelegation to Thailand led

by DMD Khaled Al-Khamees

DMD A&F Khaled Al-Khamees and PR & Information Manager Abdul Khaleq Al-Ali at the event

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25April-June 2012

paleo-sea level during the Albian-Cenomanian age for the Greater Burgan area. The work, which was conducted in collaboration with IFP, France, was presented by Fields Development Team Geologist Bashar Al-Anzi.

Another paper that was presented by a KOC employee was titled “Burgan Multilateral Campaign: A Success Story in Development of a Complex Siliciclastic Reservoir in Kuwait.” This particular paper showcased the successful adoption of multilateral drilling technology in the Burgan Formation. This paper, which was composed by multiple authors, was presented by Senior Geologist Dipankar Ghosh.

The Opening Ceremony included remarks by government officials such as H.E. Arak Chonlathanont, Minister of Energy, Thailand, H.E. Mohamed Bin Dhaen Al-Hamli, Minister of Energy, United Arab Emirates, H.E. Dr. Mohammed Hamed Al-Rumhy, Minister of Oil & Gas, Oman, and other leading and important individuals from the oil industry from around the world.

The large number of attendants to the Executive Plenary Session and Topical Luncheon demonstrated the importance of IPTC as a vehicle for the international oil and gas community to keep abreast of the latest industry developments and technology advancements. In addition, attendees enjoyed a technical program that consisted of more than 300 papers presented in 60 technical sessions, one poster presentation and four panel sessions drawing an average of 200 delegates per session.

The Young Professionals Workshop, which was held in conjunction with IPTC, attracted 70 young professionals from around Asia and Europe and stressed the importance of creativity and innovative technology in tackling the changing oil and gas industry environment.

More about IPTC:

The International Petroleum Technology Conference (IPTC) is an international oil & gas conference and exhibition, and the event rotates between various venues in the Eastern Hemisphere. The scope of the conference programs and associated industry activities address technology and relevant industry issues that challenge industry specialists and management around the world.

The IPTC is a collaborative effort among the American Association of Petroleum Geologists (AAPG); the European Association of Geoscientists and Engineers (EAGE); the Society of Exploration Geophysicists (SEG); and the Society of Petroleum Engineers (SPE). The synergy of these four leading member driven societies provides the most comprehensive opportunity to form multidisciplinary committees and an outstanding technical program.

Regional oil ministers, industry leaders and governmental representatives have the opportunity to discuss and share their views on

timely industry topics and trends,

exchange expertise and experience,

present state-of-the-art technology

and innovation, and stimulate further

research of technical and business

activities. In addition, awards

and recognition will be given for

organizations’ efforts in technical

and business contributions to the

industry. IPTC also hosts a range

of integrated social activities that

encourage networking and off-line

discussion.

The Conference Program focuses on

dissemination of new and current

technology, best practices and multi-

disciplinary activities designed to

emphasize the importance of the

“value chain” and maximizing asset

value. The knowledge, capabilities

and strengths of the participating

countries and the sponsoring

societies’ global membership, over

the spectrum of multi-disciplinary

technologies, is central to the

success of the conference and the

corresponding exhibition.

The audience listens to a presentation at the KOC booth

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26 April-June 2012

security, privacy, confidentiality

and data availability.

Analysis:

Here at KOC, the number

of RDBMS has increased

dramatically. In addition, the

size of the critical data stored

is getting bigger and bigger. Misuse of these databases and the information they contain – whether malicious or accidental – presents serious risks for the enterprises. For some time, CITG and the concerned staff have been monitoring and identifying risks that are associated with critical database activities and behaviors. Below is a list of database activities and behaviors with users who have access to perform such activities:

Privileged Users:

Database Administrator (DBA)

Users with special, high-level privileges, such as Database Administrators (DBAs), are constantly subject to intense scrutiny from higher level staff

As data stored in our enterprise

databases grows rapidly and

as the information contained

within becomes increasingly

sensitive and subject to legal

and regulatory requirements,

the need to monitor our

databases becomes more and

more warranted.

Although auditors - external and internal - routinely check the setups of our databases, we still need to remain vigilant and use the proper tools to ensure our databases and servers remain secured, controlled and free of risk.

Contrary to what some may believe, hacking mostly occurs from the inside and not from outside our network. In order to ensure data is properly protected and accessed only by genuine and authorized users, company databases should be secured and sheltered.

In order to avoid any problems within our Relational Database Management System (RDBMS) databases, Database Administrators (DBAs) and System Administrators are required to develop processes for monitoring individuals with access to enterprise databases in order to identify potential problems and implement controls to mitigate all risks associated with such problems. Such risks can impact

Safeguarding Network Data

Hussain HraishTPL Specialist l,

Information Technology Team

Submitted by: Fatma Al-Otaibi and Hussain Hraish, Information Technology Operation Team

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27April-June 2012

of the organization and from

auditors. The reason is obvious:

These users have access to the

whole database and they can

potentially do enormous damage.

They have the passwords to all

directories of the database, which

includes privileged user passwords

like SYS and SYSTEM. Such users

are subject to rigorous background

checks and they are monitored

and audited for the following

activities which have the potential

to be problematic:

• Access to, deletion of, or

changes to data.

• Access using inappropriate or

non-approved channels and

connecting directly to the

database.

• Schema modification, which

creates a new table and then

copies data from the old

table to the new one. This

can avoid an audit trail and

inappropriate or unauthorized access to a schema can be extremely damaging to the database.

• Unauthorized addition of users or deletion of users from the database.

• SQL injection through a web application’s tier.

• Using default or easy passwords for the many schemas created within the database. The DBA should audit the databases regularly in order to identify and correct default or easily predictable passwords.

DBAs have access to database files and they are only allowed to exercise database activity. They have no access to the application - not even through the menu of the application. This eliminates all activities that may lead to errors or provide access to confidential

information. DBAs are not allowed

to connect to the database directly

and inappropriate and non-

approved access to the database

is not allowed. Addition and

deletion of a user’s authorization

to application menus is performed

only after receiving approval

from the concerned staff from the

user. All activities are monitored,

documented and audited.

System Administrator (SA)

Server administrators are system

architects responsible for the

overall design, implementation,

and maintenance of a server.

Security issues and solutions can

originate from either outside (e.g.,

security patches and fixes from

the manufacturer or computer

security incident response teams)

or within the organization.

Appropriate management

practices are followed in KOC

to maintain a secure server.

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28 April-June 2012

Security practices entail the identification of an organization’s information system assets and the development, documentation and implementation of policies, standards, procedures and guidelines that ensure confidentiality, integrity and availability of information system resources.

To ensure the security of a server and the supporting overall server infrastructure, KOC has implemented the following practices:

Organizational Information

System Security Policy

A security policy should specify the basic information system security tenets and rules and define their intended internal purpose. The policy should also outline who in the organization is responsible for particular areas of information security (e.g., implementation, audit, review). The policy must be enforced consistently throughout the organization to be effective.

Configuration/Change Control

and Management

The process of controlling modifications to a system’s design, hardware, firmware and software provides sufficient assurance that the system is protected against the introduction of an improper modification before, during and after system implementation. Configuration control leads to consistency with the organization’s information system security policy.

Risk Assessment and

Management

Risk assessment is the process

of analyzing and interpreting

risk. It involves determining

an assessment’s scope and

methodology, collecting and

analyzing risk-related data, and

interpreting the risk analysis

results. Collecting and analyzing

risk data requires identifying

assets, threats, vulnerabilities,

safeguards, consequences and the

probability of a successful attack.

Risk management is the process

of selecting and implementing

controls to reduce risk to a level

acceptable to the organization.

Standardized Configurations

Develop standardized secure

configurations for widely used

operating systems and server

software. This will provide

recommendations on how to

configure systems securely

and ensure consistency

and compliance with the

organizational security policy.

Contingency, Continuity

of Operations and Disaster

Recovery Planning

Contingency plans, continuity of operations plans and disaster recovery plans are established in advance to allow an organization or facility to maintain operations in the event of a disruption.

End Users

End users should not have access to data that is beyond what they are authorized to view to complete their jobs and duties. End users should especially be monitored when they have access to sensitive data and access should be revoked when they move to a different department in which such access is not needed or required. In this case, the onus falls on the original department to inform IT to stop or delete such access.

End users should only have access to the database through

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29April-June 2012

the proper application’s menus.

The authorization to access an

application is given only after

approval by the authorized entity.

End user authority is always

checked, reviewed and verified.

For example, all access to HR

menus that are given to end

users should be approved and

authorized by specified users

within the HR team.

Developers and Systems

Analyst

KOC follows the best practice

of having two environments for

our computing setup, especially

for critical ERP systems. One

environment is Production

and the other is Testing and

Development. Best practice

dictates that Developers and

Systems Analysts should only

have access to the testing

environment and not the

production environment. Any new

development, update, upgrade

or bug-fixes should first be

applied on the test environment

and once they pass thorough

testing, they can be implemented

and incorporated within the

production environment.

Only necessary patches are to be

applied. Patches are to be applied

only to correct a bug, keep the

databases up-to-date and to solve

problems. Patches that affect

applications are to be considered

and consulted upon by the

concerned staff from the users.

Conclusion

Enterprise databases – especially

RDBMSs – and ERP systems

now contain enormous amounts

of critical, highly sensitive

information. This information

is frequently subject to rigorous

legal, regulatory and other

compliance requirements, and its

misuse, exposure or unavailability

has the potential to cause serious

damage to the enterprise. Any

behaviors that represent potential

database security problems are

not tolerated and CITG authorized

senior staff, along with internal

and external auditors, routinely

monitor and audit these behaviors

and take the necessary actions

and recommendations to remedy

and prevent such issues.

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30 April-June 2012

The KOC Water Handling Team (KOC-WH) recently implemented a state of the art Laboratory Information Management System (LIMS) at its West Kuwait (WK) Water Handling laboratory in order to enhance operations.

KOC WH (WK) also intends to pursue the challenging task of acquiring ISO 17025 Certification. However, the procurement of the LIMS system will facilitate this undertaking because of the system’s ability to reduce the time and effort required to meet the extensive documentation and procedural requirements for ISO 17025 Certification.

Before purchasing the new system, representatives from various LIMS vendors

The KOC Water Handling Team maintained that positive feedback from the refinery and the comprehensive features and functionality of SQL*LIMS justified its selection as the preferred software to enhance their operations.

Salman Al-Qabandi, Team Leader of the KOC (WK) Water Handling Unit, explained the reasoning behind the need for LIMS:

“Our current lab data requirements are met using an Oracle based system (Shahala) for data storage. Though the system meets our basic needs, we realized that ideally we should move to an off the shelf LIMS system that is dedicated to lab applications that will help us comply with GLP, ISO and other

were invited to provide demonstrations and discuss their products with representatives from the laboratory and IT staff before assessing and studying the KOC Water Handling Team’s requirements. The KOC (WK) Lab Team also conducted a visit to several LIMS sites in order to view their LIMS systems in a real world environment. This included a visit to KNPC’s Mina Abdullah Refinery, where they received positive feedback about the system from the Team Leader and Sr. Chemist there, who upheld the positive qualities of SQL*LIMS and its ability to be configured to cater to the laboratory's workflow in addition to the positive support and services offered by Al Essa Group, the local LIMS vendor.

DMD, (WK) Captain Ahmad Al-Rasheed at the facility

WK Water Handling Lab Implements LIMS

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31April-June 2012

regulatory and environmental directives while also complying with our ‘Go Green' paperless initiative.”

KOC WH (WK) needed a safe, strong software application and data repository to satisfy and manage various quality assurance requirements in a secure and efficient manner. Several required features such as Auditing, Electronic Approvals, SOP/Calibration/Stock Management, Limit Checking, Ad Hoc Reporting and Instrument Interface, among others, were not easy to conduct through Shahala; however, they are easily available through SQL*LIMS.

KOC's Technical Systems Division, who are in charge of the LIMS project, are heavily involved and provide the hardware, database and networking environment that makes the system possible. The division is also renowned for successfully introducing several cutting edge technologies to Kuwait for the first time. Headed by Team Leader Hussain Saleem, the Technical Systems Division played a pivotal role in the technical evaluation and expediting of the procurement, engineering, configuration, design, testing and commissioning of the LIMS project.

SQL*LIMS is built on an Oracle platform, which is widely used by various applications at KOC. This will enable seamless integration with the existing Oracle Shahala database used by the lab and the Real Time Performance Management System (PI) used at the Minagish Water Injection Plant (MWIP).

Benefits of a LIMS System:

• Improved productivity & efficiency of lab operations

TL, Water Handling Team (WK) Salman Al-Qabandi gives an explanation about the lab

• Quality control

• Lab data becomes traceable,

retrievable and available to

all users

• Lab data can be accessible

remotely through an efficient

search tool

• Improved data management

• Improved monitoring of

workload

• Improved data accuracy

• Improved reporting format

• Improved laboratory sample

lifecycles.

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32 April-June 2012

As Kuwait’s main producer of oil and gas, KOC has the large responsibility of providing energy for both local needs and export purposes whose profits benefit the nation as a whole. However, KOC’s responsibilities do not end there, as Dhari Al-Gharabally, Team Leader – Health and Environment pointed out recently at the Kuwait Oil and Gas Conference.

As the Health and Environment Team Leader at KOC, part of Al-Gharabally’s job is to ensure the health and welfare of KOC employees and contractors is protected. This, he said, is done in a number of ways that range from informative messages and campaigns to actual workshops or talks.

“Ensuring the safety of our employees doesn’t just concern itself with the office – Many of our employees have to drive for over an hour in some cases to their offices in North or West Kuwait. We make sure that our employees are safe everywhere, starting from the home,” he said.

In his speech, Al-Gharabally pointed out that KOC strives to comply with regulations in Kuwait as defined by the EPA. In fact, KOC’s willingness to protect the environment is so strong that the company actively seeks to work hand in hand with the EPA on a number of issues. This is particularly true in relation to the monitoring of air quality throughout Kuwait, an undertaking which KOC and the EPA work cooperatively towards. “By working together with

in reducing the amount of gas flaring it actually engages in. With the ultimate target of reducing flaring to less than 1% by 2011/2012, Al-Gharabally maintained that KOC was largely successful in this undertaking, adding that in some cases, flaring was even reduced to levels below 1%.

Considering the fact that gas flaring in Kuwait stood at some 17% as recently as 2005, and stood at levels even greater than that in previous years, Al-Gharabally said that this achievement in such a short amount of time was a great accomplishment for the company. The team leader added that the reduction in flaring could not have been completed without serious investment in equipment and resources and a commitment from management to accomplish this goal. Additionally, both internal and external coordination, especially with KNPC, allowed for this goal to be

regulators like the EPA, we both can achieve the common goal of improving the environment,” said Al-Gharabally.

In addition to working with outside regulators, KOC has developed a number of internal programs and procedures it uses to promote a culture that values a safer environment. One of these systems is HSE Live, which is an automated system developed within KOC that is used to monitor and capture all HSE-related incidents that occur within the company. “If you want to manage any issue, you have to measure it,” Al-Gharabally said, adding, “Without measuring it, you won’t understand where the risk your employees are faced with and where to focus your efforts.”

The first thing that comes to mind when many people think of KOC is probably a large flare burning bright atop a flare stack. However, in reality, KOC has taken monumental strides

KOC’s Environmental Achievements

Dhari Al-Gharabally, Team Leader – Health and Environment

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33April-June 2012

realized. To make matters even better, Al-Gharabally reminded the audience that in addition to the reduction of gas flaring, the flaring that now occurs is cleaner thanks to air assisted flaring, which is a method that utilizes the injection of air which greatly reduces emissions and eliminates the black smoke commonly associated with flaring.

In addition to reducing gas flaring within KOC, Al-Gharabally highlighted the other important reductions the company has achieved. For example, in 2004/2005, some 50% of effluent water went into pits; however, today that figure has been reduced to a mere 9%, which represents a significant reduction. In 2004/2005, some 6,000 barrels of oil were spilled in accidents. Today, and despite oil production operations increasing, that number stands at approximately 200 barrels of spilled oil.

Another very important undertaking being planned by KOC is the Sustainable Environmental-Economic

Development (SEED) Project. The goal of this project is to identify all contaminated soil sites within KOC operations and develop plans for the management of their cleanup. In addition to the SEED Project, Al-Gharabally pointed out that KOC is working in coordination with the UN to remediate the issue of the oil lakes which have been left over from the Iraqi invasion of Kuwait.

“We have a serious commitment to the community and environment that we work in,” Al-Gharabally said. As such, KOC has supported a number of programs that do much to create a better environment in Kuwait. Some of these projects include the Spirit of the Desert and Kuwait Oasis, which were both rehabilitation and beautification projects that took place in the deserts of Kuwait. KOC also supports marine projects, such as beach cleanups, the installation of buoys for boats around Kuwaiti shores and islands, and the KOC Marine Colony, which is a collaboration with the Kuwait

Institute for Scientific Research (KISR). The KOC Marine Colony was a project responsible for placing around 1,000 artificial reefs in Kuwaiti waters which has done much to the support various marine life there.

Plans for the future include the implementation of a Wildlife Program that will actively develop plans to relocate animals affected by KOC operations and support their natural habitats. Part of this program is already in existence, as KOC has dedicated many reserves within KOC for wildlife which act as reserves for migratory birds.

HSE Team Leader Dhari Al-Gharabally maintained that the way forward for KOC in terms of HSE is to remain committed to its duties by complying with regulations and doing everything within the company’s power to create a better and safer work environment for its employees. This, of course, comes in addition to doing everything KOC can to ensure it has a minimum impact on the environment it operates within.

Al-Gharabally presenting at the Kuwait Oil & Gas Summit

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34 April-June 2012

3rd Annual Production Optimization Middle East Summit

In a time where rising demand for oil and gas runs parallel to the rise of hydrocarbon production costs, the oil and gas industry continues to find itself under increasing pressure to seek innovative ways to economically produce from depleted and early-life reservoirs. Although discovery costs have declined by as much as 75% over the last 20 years, development and production costs have as much as doubled in the same time frame. As a result, operators are now changing their focus and

emphasis on new methods of prolonging the productivity of mature fields.

The 3rd Annual Production Optimization Middle East Summit recently brought together global experts and regional leaders to discuss and share their experiences, discuss the latest solutions and essential strategies to fully capitalize on the potential of reserves, maximize revenues and meet the economy’s growing demand.

As part of their efforts to stay abreast of the latest developments and

breakthroughs in the industry, and to share their own experiences in the field, KOC’s Production Operations (WK) and Water Handling Labs (WK) participated in the Production Optimization Middle East Summit on Feb 19-20, 2012 at the Hilton Resort in Mangaf.

Dr. Abdulhameed Al-Hashem, the Director of Petroleum Research & Studies Center at the Kuwait Institute for Scientific Research (KISR), opened the event by welcoming the visiting delegates to Kuwait and talking briefly about KISR’s activities and its cooperative efforts in certain

Falah Al-Azmi, TL PO (WK) delivers his presentation

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35April-June 2012

areas with KOC. Among other activities, these cooperative efforts include the monitoring by KISR of water injection projects by KOC.

Presentations form KOC’s side were delivered by Falah Al-Azmi - TLPO (WK), Kuppusamy Uthaman, Chief Chemist, Chirag Parikh, Process Engineer, and Khaled Al-Otaibi, Production Chemist. The speakers gave a brief description of the upgrades and automation of surface facilities and produced water challenges and the successful handling of these issues at KOC facilities.

In his presentation, Al-Azmi discussed improving oil recovery through upgrades and the automation of surface facilities. His talk included a discussion on identifying the capabilities and limitations of conventional oil processing facilities and a review of the positive impact of enhanced surface facilities and operations on the subsurface.

During the conference, Chief Chemist Uthaman chaired a panel discussion on production chemicals optimization. Along with Falah Al-Azmi, he was also the session leader on produced water management strategies which took place on the last day of the event. KOC participated in the conference as the local oil and gas leader and shared valuable knowledge and experiences with the audience, which in turn produced an active discussion and generated many interesting questions from the visiting delegates.

The 3rd Annual Production Optimization Middle East Summit was attended by both international and GCC delegates, as well as industry peers from inside Kuwait. The conference featured discussions on the the latest technologies on EOR/IOR techniques and the best produced water management techniques.

Dr. Abdulhameed Al-Hashem, Director of Petroleum Research & Studies Center (KISR)

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36 April-June 2012

Enterprise Risk Management

What is Enterprise Risk Management?

Enterprise Risk Management (ERM) is the term used to describe the methods and processes that organizations use to manage risks and capitalize on opportunities related to their stated goals and objectives. ERM provides the framework for risk management, which usually involves identifying particular events or circumstances relevant to the organization's objectives (risks and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress. By identifying and proactively addressing risks and opportunities, business enterprises protect and create value for those who hold stake in the company, which can include owners, stockholders, employees, customers, regulators and society as a whole.

When an ERM initiative is put together, the company should focus not only on the downside of risk but the upside as well. The traditional approach was to focus on the downside - the losses from currency or interest rate trades in financial markets, for instance, or financial losses that might be caused by a disruption in

a supply chain or cyber or terrorism attack that impairs a company's information technology.

In thinking about the upside, companies are supposed to consider competitive opportunities and strategic advantages that might arise out of the careful management of risk. Some of these "better decisions" involve items like where to locate a plant or office abroad based on a risk analysis that would look at the political environment in a country.

Why is ERM important to KOC?

KOC recognises that its role as an integrated oil & gas exploration and production company exposes

it to a variety of risks as well as opportunities. Therefore, as the custodian of Kuwait’s domestic hydrocarbon reserves, KOC must do everything in its power to protect the interests of its stakeholders, which includes the KOC management and workforce, KPC, customers, contractors, suppliers and the Kuwaiti society and parliament. These stakeholders monitor KOC’s risk performance, both formally and informally. By applying sound risk management principles in a systematic way, KOC can:

• Act proactively to address risk exposures before a loss is realized

The ERM ProcessFigure 1 Outlines the ERM Process.

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37April-June 2012

• Act reactively to effectively mitigate the effects of a risk event in a planned manner

• Demonstrate good governance of the company, its resources and assets, and its future to all stakeholders

KOC recognizes the importance of ERM policies for a number of reasons. For example, ERM empowers the management to help better face reality through robust risk identification and assessment processes. It also promotes a “risk-aware” culture that encourages honesty in reporting, sharing and responding to risk as well as opportunities by all KOC employees.

What are KOC’s ERM Roles and Responsibilities?

Everyone who works at KOC is in some way responsible for ERM. A brief outline of those responsibilities follows.

The Chairman and Leadership Committee shall:

• Make risk-based decisions

• Establish the KOC Risk Philosophy. This is the level of risk tolerance and is set by the Chairman and the Leadership Committee

• Review the Policy periodically in line with significant changes to the business

• Monitor the Risk Profile of KOC

• Conduct an annual review of the KOC Risk Profile, and take any appropriate actions to effectively control very high risks recorded in the Risk Register

• Ensure that the implementation of the KOC risk policy is in line with the KPC risk policies

Manager and Team Leaders shall:

• Be responsible for managing risks within the scope of their authority for their area

KOC Enterprise Risk Management Policy

Statement

Sami Fahed Al-RushaidChairman and Managing Director

KOC has adopted an Enterprise Risk Management (ERM) framework that is consistent with the KPC ERM framework & policy and international best practices to manage our business risk profile and strive for continual improvement. Risk, including opportunities, is inherent in all of KOC’s business activities, and employees intuitively manage risks on a daily basis. However, more formal and systematic approaches to managing risks have become an accepted component of best business practice and are a requirement of the Leadership Committee and Managers.

ERM is fundamental to achieving KOC’s business aims. By capturing the risks and applying appropriate actions to reduce its impacts to levels that are acceptable to the business, we can have confidence in our processes.

Risks impact more than one area or function. Therefore, their identification and mitigation may require coordinated action from various groups. All employees should support a culture of full risk transparency, disclosure, open dialogue follow the ERM framework as described in the ERM Manual. Greater visibility of our risks will enable the Leadership Committee to monitor actions and apply appropriate resources for a successful outcome. KOC shall undertake a periodic review at least annually of the risk register as required to effectively manage risks.

KOC’s ERM Framework will lead to a clear understanding of our risks, thereby improving decision-making, performance and accountability at all levels within the Company and increase the likelihood of successful realization of KOC’s strategy.

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38 April-June 2012

• Ensure that decisions are made in accordance with ERM policy & guidelines

• Report regularly on the key business risks to their superiors

• Implement procedures to manage (terminate, treat, tolerate or transfer) and report on risks in their area of responsibility

• Integrate risk management into every aspect of normal business processes, for example:

• Business planning

• Asset management

• Project management

• Management reporting

• Conduct risk management that is proportionate to the level of risk faced

• Assist in the quantification of the risk tolerance by recommending specific limits

All employees and contractors should:

• Actively apply the ERM process in their daily duties.

• Commit and work to deliver good risk management performance.

• Seek to improve knowledge and understanding of effective risk management principles & practices through continuing personal development.

ERM is fundamental to achieving KOC’s business aims. By capturing the risks and applying appropriate actions to reduce its impacts to levels that are acceptable to the business, KOC can have confidence in its processes.

ERM Process

ERM Process creates a mechanism within which exposures can be identified, risks assessed and

management plans developed. In general, the risk management process involves:

1. Establishing Context: This includes an understanding of the current conditions in which the organization operates on an internal, external and risk management context.

2. Identifying Risks: This includes the documentation of the material threats to the organization’s achievement of its objectives and the representation of areas that the organization may exploit for competitive advantage.

3. Analyzing/Quantifying Risks: This includes the calibration and, if possible, creation of probability distributions of outcomes for each material risk.

4. Integrating Risks: This includes the aggregation of

Risk ReportingFigure 2 Outlines the process for monitoring and reporting risks within KOC.

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39April-June 2012

all risk distributions, reflecting correlations and portfolio effects, and the formulation of the results in terms of impact on the organization’s key performance metrics.

5. Assessing/Prioritizing Risks: This includes the determination of the contribution of each risk to the aggregate risk profile, and appropriate prioritization.

6. Treating/Exploiting Risks: This includes the development of strategies for controlling and exploiting the various risks.

7. Monitoring and Reviewing: This includes the continual measurement and monitoring of the risk environment and the performance of the risk management strategies.

At least annually the Directorates will consider:

• The changes, since the previous review, to the nature and extent

of the significant risks and the company’s ability to respond to changes in its internal and external business environment

• The scope and quality of the management’s risk monitoring, the system of internal control and the effectiveness of monitoring

• The extent and frequency of reports on risk monitoring and controls, the incidence of significant failings or weaknesses in controls that have been identified in the period, and their actual or potential impact on the company’s financial performance or condition

When significant failings or weaknesses occur, the Directorates should:

• Find out how the failing or weakness arose through the application of a structured root cause analysis method

• Reassess the effectiveness of management's process for designing, operating and monitoring of the system of internal control

It is expected that Directorates shall ensure that this process underpins key decision points in activities undertaken within their area of influence and the Directorates shall issue an update to the risk register on an annual basis for compilation by the RMT prior to the December meeting of the Leadership Committee.

In conclusion, the goal of KOC’s ERM framework is for it to lead to a clear understanding of KOC’s risks, thereby improving decision-making, performance and accountability at all levels within the Company and increasing the likelihood of the successful realization of KOC’s strategy.

Risk PolicyFigure 3 Outlines KOC’s ERM Risk Policy

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40 April-June 2012

Madathil Nair has come a long way since he first joined KOC in 1979. Born on December 3, 1946, Nair received his B.A. in Science before setting his sights on KOC, eventually working his way through the ranks until he became a Senior PR Officer at the Local Relations Team. Kuwaiti Digest caught up with Nair recently and asked him about his long-standing history with KOC in the following interview:

When and how did you join the company?

I joined on March 10, 1979. The joining experience was anxiously funny as I didn’t know much about the grading of jobs then in the Company. I thought a higher grade number indicated a better status and was wrangling with the recruitment officer for a higher number. In reality, a lower number meant a higher grade! I made a fool of myself in front of the recruiting staff who were roaring in laughter.

Where you were first posted when you joined the company?

Local Relations Division which now is Local Relations Team. I seem to have been custom-made for them with my past experience with meeting documentation that someone recently called me a Local Relations fixture, and I am known among my friends as “Local Relations Nair.”

How do you compare today’s Ahmadi and then?

Ahmadi has always been beautiful! Yet, she had more rural charm during my early KOC days. Ahmadi souk didn’t have many eating places before the Iraqi invasion

– there was just one Wimpy’s, an Indian sandwich shop, and an Arab mataa’m in later days. There were two stores – Americana and Zam Zam. Sultan Center and the Co-op came later. After the invasion, restaurants just proliferated as they did elsewhere in Kuwait. However, sadly today, Ahmadi souk has been evacuated to virtual desolation for rebuilding and most of the houses in South Ahmadi have been demolished. My old house has also vanished. It is really sad. But let us hope the town will rise again from ashes to glory like the Phoenix bird when the rebuilding project concludes.

How was life in Kuwait, in general?

The days were simple before the invasion. The cultural roots of society were more visible. Things moved slowly. Values predominated. People had more time for each

other and for introspection. The first generation of PCs was just coming into the market in 1990 when Iraq invaded. They were pretty expensive. We used to depend on electric typewriters for our office work. Some privileged departments had word-processors! The situation changed instantly after the country’s liberation. The electronic revolution has now completely swept the simplicity of the past away. Kuwait now is in a frenetic hurry and her youngsters, drenched in modernity, are unbelievably techno-savvy.

How would you describe the company 30 years ago?

The British had just departed, leaving behind a well-oiled administration. There were meticulously laid-out procedures for everything and well-trained hands to make them work. It was a matter of pride to belong to

Decades of ServiceMadathil Nair Recollects his Years of Service with KOC

Madathil Nair with Public Relations & Information Manager Abdul Khaleq Al-Ali

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41April-June 2012

KOC. People wouldn’t just believe that we non-Arab expatriates were directly-recruited KOC employees. The general belief was that only Arabs could work for KOC – others belonged to contractors! There was only one Production Operations Group then, just one Maintenance and one Engineering – no Major Projects at all! IT was unheard of. There was some rudimentary computer set-up that generated data sheets. Production Development was in formative stages. Current advances in exploration and development technology were still futuristic. Motorway 40 was in design stage. So were the improvements planned to upgrade Road 30 to expressway standards. We in Local Relations were very busy with those projects of the Ministry of Public Works as they conflicted with a number of Company pipelines and interests.

What positions have you assumed in the past 30 years?

I joined initially as a Clerk to be upgraded slowly to Senior Clerk, Technical Assistant Liaison, Technical Assistant in Gas Operations, Assistant Admin. Officer, Admin. Officer (Liaison), Public Relations Officer and finally Senior Public Relations Officer.

When did your family join you in Kuwait?

I got married in August 1980 after I joined KOC. My wife joined me in Kuwait in February 1981 to live at our house on 1st Avenue – South Ahmadi.

Where were you when the Iraqi forces occupied Kuwait?

That is a big story. I had just migrated to Gas Operations Department on transfer when the Iraqis invaded Kuwait. I was taken prisoner by the Iraqi army from the KOC Main Office and had to languish in an Iraqi prison camp in Baghdad for about one month

before I was released and sent to Mumbai by the Indian mission at Baghdad.

How did you feel about this act of aggression?

It was cruel, sad and a single man’s misadventure. In the prison camp, I had occasions to witness how the captive Kuwaitis were suffering at the hands of their captors. It was gruesome.

How have things changed after Kuwait assumed full ownership of the company?

The new leaders have placed the Company in the forefront as a renowned IOC that uses the most advanced and sophisticated technology and shares interests with global leaders and giants in the field.

Can you tell me about some of the unforgettable moments in Kuwait?

Sure. The dawn the guns roared and the Iraqis marched in, my transfer to Iraq as a prisoner of

war, the thrilling scenes of Kuwait’s liberation which I saw on TV from my home in India, my return to Kuwait after her liberation, the 75th Anniversary celebrations in December 2009 in which I took part as member of the Reception Committee, every time my superiors and Manager (Mr. Abdul Khaleq M. Al-Ali) appreciated my work and recommended me for award or incentives, the emotional farewell they hosted for me recently.

What memories do you carry with you as you finally leave Kuwait?

Crimson sunsets that are rare in other parts of the world, spring landscapes carpeted by golden yellow flowers, trees silhouetted against the shining blue sky and silver sun which rouse the poet and philosopher in me, flares of optimism blazing over the refineries, dusty afternoons that set me brooding, and, above all, the wonderful people of Kuwait who loved me and treated me as their equal.

Nair bids farewell to the PR & Information Group

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Hi-Tech

42 April-June 2012

Spider Silk Conducts Heat Better Than Copper

In addition to being extremely strong and stretchy,

spider silk conducts heat better than most materials,

including silicon, aluminum and pure iron, mechanical

engineers at Iowa State University have discovered.

Xinwei Wang, lead researcher on the study, found that

spider silk conducts heat 1,000 times better than woven

silkworm silk and 800 times better than other organic

tissues, which is surprising because most materials

from living things are very poor conductors of heat.

Spider silk conducts heat at a rate of 416 watts per

meter Kelvin, compared with copper at 401 and skin

at 0.6 watts per meter Kelvin. Wang said: "This is very

surprising because spider silk is organic material. For organic material, this is the highest ever. There are only

a few materials higher - silver and diamond." This discovery could open a door to using spider silk to create

flexible, heat-dissipating parts for electronics, better clothes for hot weather and bandages that don't trap heat.

First-Ever Images of Atoms Moving Inside a

Molecule Captured

Ohio State University researchers have captured the

first-ever images of atoms moving within a molecule

by using a technique that turns one of the molecule’s

own electrons into a kind of flash bulb. The images

were snapped using an ultrafast laser, which fired 50

femtosecond (a femtosecond is a quadrillionth of a

second) pulses at the molecule to knock a single electron outside of the molecules outer shell. This electron,

having been knocked out of its proper place, comes crashing back into the molecule, and in doing so it

provides the kind of illumination the researchers need to image the molecule itself. By measuring the scattered

signal of the electron as it collides with the molecule, they were able to reconstruct the inner workings of the

molecule, including things like the positions of the atoms nuclei. For their experiments the researchers used

oxygen (O2) and nitrogen (N2) molecules because their molecular structures are well understood. The next

steps will involve imaging more complex molecules and, eventually, figuring out the potential for precisely

controlling chemical reactions right down to the atomic level.

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43April-June 2012

A Trip to the Gym Alters DNA

According to a paper published by Cell Metabolism,

the chemical composition of your DNA in the form of

methyl groups can be modified when you hit the gym.

The presence (or absence) of methyl groups at certain

positions on DNA can affect gene expression. Juleen

Zierath of the Karolinska Institute in Stockholm and her

team looked at the methylation status of genes in small

biopsies taken from the thigh muscles of healthy young

adults before and after a stint on an exercise bike.

They found that, for some genes involved in energy

metabolism, the workout demethylated the promoter

regions, stretches of DNA that facilitate the transcription

of particular genes. Genes unrelated to metabolism

remained methylated. The amount of demethylation depended on the intensity of the exercise, with muscle

biopsies from individuals who had cycled the hardest showing the greatest gene demethylation. The findings

will come as a surprise to many researchers in the field. “Once a cell becomes an [adult] cell type, let's say a

muscle cell or a fat cell, it is generally thought that DNA methylation is stable,” said Ronald Evans, a molecular

biologist at the Salk Institute for Biological Studies in La Jolla, California. “What Juleen is showing is that acute

exercise changes the methylation status of the genome in actual muscle cells.”

Microbes Help Clean Up Gulf Coast Oil Spill

Scientists recently said that microbes kept the oil and

gas spewing from the Macondo well from becoming

even more of a disaster, preventing the Deepwater

Horizon blowout from deeply befouling the Gulf

Coast. But these hydrocarbon-eaters got an assist

from the Gulf of Mexico - the prevailing tides and

currents helped keep hydrocarbon-eating microbes

on the job, according to the results of a new model published in Proceedings of the National Academy of

Sciences on January 9. Simply put, the study found that water mixing ensured that the 200 billion grams

of hydrocarbons injected into the Gulf of Mexico became, ultimately, some 100 sextillion microbial cells of

propane and ethane-consuming Colwellia, aromatic-eating Cycloclasticus, methane-munching Methylococcaceaa

and alkane-eating Oceanospirillales. They also ensured that hydrocarbons were introduced into waters already

hosting microbe blooms spurred by earlier oil and gas releases. The team of researchers suggest that this

“autoinoculation” - early blooms drifting back to the spill site and chowing down anew - allowed the microbes

to work fast over the course of the months-long disaster as well as keeping oxygen depletion from growing too

severe in any one place.

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44 April-June 2012

Terrestrial Trunked Radio (TET-

RA) is a digital trunked mobile

radio standard developed by

the European Telecommunica-

tions Standards Institute (ETSI).

Because the TETRA standard has

been specifically developed to

meet the needs of a wide variety

of traditional PMR user organiza-

tions, it has a scalable architec-

ture allowing economic network

deployments ranging from single

site local area coverage to mul-

tiple site wide area national

coverage. Besides meeting the

needs of traditional PMR user

organizations, the TETRA standard

has also been developed to meet

the needs of Public Access Mobile

Radio (PAMR) operators. How-

ever, it quickly became apparent

that there was a similar need for

a standard covering the needs of

Public Safety and other users of

private systems. Therefore, the

requirements were broadened to

cover all of these needs. Today,

Public Safety and Security, Trans-

port and many other sectors such

as Oil, Police and Military are us-

TETRATErrestrial Trunked RAdio

New TETRA Radios Traditional radios

Submitted by: Abdulsalam Al-Matrouk, Corporate Information Technology Group

Abdulsalam Al-MatroukSr. Eng. Telecommunications

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45April-June 2012

ers of TETRA systems.

TETRA relies on digital trunking.

TETRA-based products come with

built-in encryption features to

ensure the privacy and confiden-

tiality of sensitive data and voice

communications. These products

are also designed with the ability

to transfer data at faster rates than

seen before in mobile radio com-

munications.

Common mode of operation for

TETRA radios is in a group-calling

mode in which a single button

push will connect the user to the

users in a selected call group

and/or a dispatcher. If enabled by

the subscriber management, TET-

RA terminals can act as mobile

phones, with a full-duplex direct

connection to other TETRA users

or the Public Switched Telephone

Network (PSTN). Emergency but-

tons, provided on the terminals,

enable the users to transmit emer-

gency signals to the dispatcher,

overriding any other activity tak-

ing place at the same time.

In addition, there are a number

of very attractive features such

as DMO (Direct Mode Opera-

tion—where two terminals can be

used without the network) and

Gateway mode - where a mobile

radio acts as a TETRA repeater for

portables in its near vicinity).

In short, TETRA is the perfect “in-

between” technology for organi-

zations requiring combined cell

phone and traditional radio-style

tactical communications. It is also

very cost effective for multi-site

fleets of more than 100 terminals.

These radios have facilities such

Typical TETRA Network

as SMS, GPS, Bluetooth, colour

display, WAP Browser, tracking,

and more. The ability for full

interoperability between different

manufacturer's products is a dis-

tinct advantage of open standards

developed by ETSI.

From the start, interoperability

has been of major importance to

the TETRA community to make

sure that a true competitive multi-

vendor market could be created.

Therefore, the Association built

an interoperability certification

process and contracted an inde-

pendent test house to witness

interoperability testing between

manufacturers. A highly competi-

tive market has resulted, lead-

ing to greater choice and lower

prices for buyers of TETRA equip-

ment.

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46 April-June 2012

TETRA standards chose the Time

Division Multiple Access (TDMA)

method from the beginning. TET-

RA implements four time slots,

i.e. communication channels,

within the same 25 kHz radio

channel. This is equivalent to 6.25

kHz per channel. Thus, TETRA

can provide 16 communication

channels in 100 kHz spectrum.

As mentioned earlier, TETRA sup-

ports full duplex communication

connections and can interoperate

with fixed and mobile phones

through the gateway. The TETRA

mechanism uses Time Divi-

sion Multiple Access (TDMA) to

simultaneously distribute a time

slot channel for voice services

and another for sending and

receiving data. TETRA terminals

can process data applications

when receiving or sending voice.

TETRA’s complex modulation and

demodulation mechanism sup-

ports a 128-bit encryption key,

making it extremely difficult to

illegally intercept communication

data. Audio performance remains

stable and excellent within the

network coverage, optimizing

user experience. During trunked

mode operations (TMO), TETRA

communications can be theoreti-

cally supported within a net-

work. For a four time slot TETRA

system, the maximum theoretical

communication range is 58 km,

though terminals and base station

RF performance limit the range

in practice. TETRA uses a non-

constant envelope modulation

scheme that offers greater effi-

ciency than an APCO25, DMR or

FM system scheme.

Advantages of TETRA

TETRA adopts the latest digital

modem technology. It brings the

following advantages:

• Versatile functionalities for

varieties of user demands

• Overall dispatch management

• Reliable and diversified data

application

• Fast call response

• Open Standard, interoper-

able with other radio systems,

matured multi-manufacturers

leads to cost competition, and

hence, cost reduction

• Working Interoperability Cer-

tification

• TETRA handsets are less ex-

pensive

• Spectrum Efficient (TDMA

Technology) - simultaneous

access for four users in 25

KHz channel bandwidth

• Higher data rate up to 28.8

Kbps - suitable for real-time

SCADA data communication

application requirements

• These advantages maximize

the usability and security of

TETRA products

In general, TETRA systems pro-

vide safe and reliable communi-

cations to large groups of users

and are capable of offering an

end-to-end service. Currently,

KOC is exploring the possibili-

ties of TETRA deployment in the

company. Deploying the TETRA

system at KOC will also provide

the company the feasibility of

interconnection between KOC,

KNPC, other K-Companies and

other government sectors (MOI,

MOD, MOH, Fire Departments,

etc.). Such interconnection with

other entities will help the com-

pany combat emergencies and

disaster in a more efficient man-

ner. Also, the availability of fast,

reliable, safe communication will

help the company to achieve its

2030 strategy.

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47April-June 2012

What is Meningitis?

Meningitis is an inflammation of the meninges, the membranes that cover the brain and spinal cord. Most cases are caused by bacteria or viruses, but some can be due to certain medications or illnesses.

Bacterial meningitis is rare, but is usually serious and can be life-threatening if not treated right away. Viral meningitis (also called aseptic meningitis) is relatively common and far less serious. It often remains undiagnosed because its symptoms can be similar to those of the com-mon flu.

Symptoms of Meningitis

Meningitis symptoms vary, depend-ing both on the age of the patient and the cause of the infection. Be-cause the flu-like symptoms can be similar in both types of meningitis, particularly in the early stages, and bacterial meningitis can be very seri-ous, it's important to quickly diag-nose an infection.

The first symptoms of bacterial or viral meningitis can come on quick-ly or surface several days after signs of an infection. Common symptoms include:

• Fever

• Lethargy (Decreased conscious-ness)

• Irritability

• Headache

• Photophobia (Eye sensitivity to light)

• Stiff neck

• Skin rashes

• Seizures

How Does Meningitis Spread?

Most cases of meningitis — both viral and bacterial — result from in-fections that are contagious, spread via tiny drops of fluid from the throat and nose of someone who

is infected. The drops may become airborne when the person coughs, laughs, talks, or sneezes. They then can infect others when people breathe them in or touch the drops and then touch their own noses or mouths.

Infections most often spread be-tween people who are in close contact, such as those who live together or share eating utensils. Casual contact at school or work with someone who has one of these infections usually will not transmit the infectious agent.

Prevention

Routine immunization can go a long way toward preventing meningi-tis. The vaccines against measles, mumps, polio, meningococcus, and pneumococcus can protect against meningitis caused by these microor-ganisms.

Many of the bacteria and viruses responsible for meningitis are fairly common, so good hygiene is an important way to prevent infection. Wash your hands thoroughly and often, particularly before eating and after using the bathroom and avoid close contact with someone who is obviously ill. Not sharing food, drinks, or eating utensils can help

halt the spread of germs as well.

In certain cases, doctors may give antibiotics to anyone who has been in close contact with the person who is ill to help prevent additional infections.

Treatment

Because bacterial meningitis can be so serious, it's important to see the doctor right away. If bacte-rial meningitis is diagnosed — or even suspected — doctors will start intravenous (IV) antibiotics as soon as possible. Fluids may be given to replace those lost to fever, sweat-ing, vomiting, and poor appetite, and corticosteroids may help reduce inflammation of the meninges, de-pending on the cause of the disease.

The complications of bacterial men-ingitis can be severe and include neurological problems such as hear-ing loss, visual impairment, seizures, and learning disabilities. The heart, kidneys, and adrenal glands also might be affected, depending on the cause of the infection.

Meningitis: Information and Prevention

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48 April-June 2012

For most countries outside of the Muslim world, the “Miswak” is probably a very foreign thing. However, the majority of people from Muslim countries know it as the beloved twig from the Arak tree that many use daily to brush their teeth.

Perhaps you might be asking why anyone would think of using a tree twig to clean their teeth. To put it simply, ancient man did not have the luxury of today’s toothbrushes, so many cultures have used the Miswak for oral hygiene. The use of the Miswak is well spread across the Muslim population of the world, and the Miswak finds it origins in the Middle East, where it has been derived from the Salvadora persica tree (Arak tree in Arabic).

The reason for its common use by Muslims can be attributed to reli-gious beliefs. The Prophet Moham-med (PBUH) used it frequently and also instructed his followers to do the same, which accounts for its wide use and popularity today. Fur-thermore, Islamic Literature attributes at least 70 benefits to Miswak.

Although it might sound outdated to use twigs from trees for clean-ing your teeth, medical studies conducted on the Miswak prove otherwise. Many of these scientific inquiries have shown that Miswak is better than toothpaste for preventing gum disease. Let’s take a look at this “wonder twig” and examine some of the studies conducted on it that document its proven health benefits.

A few important benefits of Miswak:

• Kills bacteria that causes gum disease

• Fights plaque

• Eliminates bad breath and odor from the mouth

• Effectively cleans between the teeth due to its fine bristles

• Increases salivation, therefore in-hibiting dry mouth (Xerostomia)

Scientific Studies on Miswak

The Wrigley Company conducted a study on Miswak which was pub-lished in the Journal of Agricultural and Food Chemistry. The study found that mints laced with Miswak extract were 20 times more effec-tive in killing bacteria than ordinary mints. A small testimony to this fact is that after half an hour, the mints laced with Miswak extract killed about 60% of the bacteria, whereas the ordinary mints managed to elimi-nate only 3.6%.

In the August 2008 issue of Jour-nal of Periodontology, a study was published by Swedish researchers on Miswak. The study apparently found that suspended Miswak pieces in a petri dish (medium for culturing bac-teria) were able to kill bacteria that cause periodontal disease without being in physical contact with the

bacteria. The researchers sug-gested that Miswak may produce antibiotic gases as an explana-tion for this phenomenon.

A study which compares brush-ing your teeth with a toothbrush and using Miswak can be found on PubMed (U.S National Li-brary for Medicine Service). The study concluded that Miswak was more effective in reducing plaque and gingivitis than brush-ing your teeth with a toothbrush provided it was used correctly. Meanwhile, a study conducted by a group of dentists at King

Saud University concluded that us-ing Miswak was at least as good as brushing your teeth with a tooth-brush, if not better.

In Islam, Miswak is recommended to be used before prayer, before entering one’s house, before and after setting out on a journey, before sleeping and after waking up, when experiencing hunger or thirst and before entering any public gathering. Widely-believed but scientifically untested attributes of Miswak include its alleged ability to sharpen one’s memory, cure headaches, strengthen eyesight, assist digestion and clear the voice.

How to use Miswak:

1. Scrape off about 1.5 cm of the bark from either tip

2. Wash the Miswak and chew its tip to make it brush-like

3. Brush teeth accordingly

4. When the bristles are worn and the flavor has subsided, cut them off and repeat

MiswakNature’s Tooth Brush

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Money Changer, Old Souk of Kuwait, 1940

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www.kockw.com