Enhancing industrial aesthetics

West Damietta power plant

Booster Station 171KOC-Hyundai Pipeline

KOC- Petrofac pipelineHabshan 5

Sany Heavy EquipmentCase D3550 Dozer

Bravi Leonardo Access Platform

KN constructs REUSE 5.0 in Kuwait

Heavy Transportion activiesAdditional Power for Habshan CampLocal Recruitment Campaign

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06

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1008

Operation News

Construction

Instant Access

Corporate - Events

FM-I S

Equipment Division

14QTECH

FM-I&C

Kharafi National Employees Survey 201118Corporate - HR

KOC’s Fourth Town Hall Meeting & Exhibition Libya Oil & Gas Summit 2012The South Sudan Investment Summit 2012Infrastructure Investment Kuwait 2012

20Corporate - Events

Contents

PEOPLECORPORATE

Name:Jawaid EqubalTitle:Operations SpecialistBusiness unit:Gasco IGD Habshan-5 Process PlantLocation:The UAE

Name:Kenneth Percy ShortenTitle:Contract Administration ManagerBusiness unit:Contract Formation DepartmentLocation:Kuwait

Name:Medhat Said Abdelkhalek Elgendy Title:Operations SpecialistBusiness unit:Gasco IGD Habshan-5 Process PlantLocation:The UAE

Name:Paul Kenneth FordTitle:Senior Sales ManagerBusiness unit:Instant Access - KuwaitLocation:Kuwait

Name:Reda Ahmed Abdelsalam ElgamasyTitle:Construction ManagerBusiness unit:Gasco IGD Habshan-5 Process PlantLocation:UAE

Name:Salvatore PittariTitle:Services Specialist Business unit:Gasco IGD Habshan-5 Process Plant Location:UAE

Name:Venkata Narasimba Murthy BurelaTitle:Senior Contract AdministratorBusiness unit:Gasco IGD Habshan-5 Process PlantLocation:UAE

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transitioning to a greener economy

a Genuine Commitment

Earth hour Switch-off by kn

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technologically-advanced StP inaugurated24Corporate - Events

Environmental responsibility

Environmental responsibility

Environmental responsibility

Construction

fM-i&CCorporate tradingiPD fM-iS instant accessEPCM fabrication General

kharafi national fully Compliant with UaE WageProtection System 23

Corporate - Events

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JULY 2012

Transmission is kharafi national’s corporate newsletter. it contains news and stories about your company. its purpose is to inform and stimulate.

kharafi national prides itself on the culture of excellence it brings to every project it undertakes and Transmission is expected to reflect this culture.

here in Corporate Communications, we would very much appreciate your comments on the content, design and layout of your corporate newsletter. Please send your constructive criticisms to:

Paul D Kennedy, Editortransmission@kharafinational.comorNada Abbas, Unit Head (Branding Unit) nada.abbas@kharafinational.comorMonique Benigna, Unit Head (Communication Unit) monique.benigna@kharafinational.com

Our front cover shows the award-winning Arwa Printing Press in Subhan, Kuwait, which was designed by local architects SSHI (Salem al-Marzouk & Sabah Abi Hana International) to enhance the aesthetics of industrial areas and which was built by Kharafi National.

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2011 started as a year full of opportunity and promise, it seemed as if the world was finally stepping out of the global financial crisis that started three years ago in 2008. this sense of hope and opportunity was short lived as global, regional and local events unfolded leading to an unprecedented period of turmoil and instability. the disturbances caused by revolutions in africa and the Middle East led to a drastic slowdown in regional economies.

the events in Egypt, libya, tunisia, Yemen, Bahrain and Syria sent shock waves throughout the region, which had an impact on trade, employment and development in all sectors.

as revolutions started to become yesterday’s news and as companies started to think the storm had finally started to settle the famous and predicted ‘double dip’ of the economic recession hit. Country after country experienced momentous challenges starting with Japan struggling to recover from the devastating earthquake and subsequent tsunami; the USa with its recent rating downgrade from aaa to aa+; the European sovereign debt crisis that is currently affecting Greece and italy, and many other countries across the Eurozone. Consequently, the international stock markets have experienced a severe downward spiral that has led to the lowest levels seen in years.

kn’s major business areas, kuwait, UaE and Egypt, have not been immune to this turbulence. kuwait’s constant political infighting coupled with the drastic scaling back for the UaE 2030 Vision and the revolution in Egypt are leading to increased pressure on businesses and the economy in general. these slowdowns pose a tremendous challenge for kn’s 2011 targets and compel us to think of creative ways to retain our position as a regional leader.

today, despite the unchartered waters we step into, we as a family must jointly analyze the way forward and determine what is really necessary and productive for the company. With USD 4 billion plus of secured backlog and considering we are well place to win an additional 1 billion of l1 in our portfolio, kharafi national is in a remarkably strong competitive position in the region. Moreover, the restructuring of the organization into a leaner more agile operation will allow us to concentrate our efforts, raise our efficiency and allow us to compete with international companies on the higher value EPC projects.

i am optimistic for the future and call on all kn staff to work closely as a team to exert their best efforts as together we get ready to create a better and brighter 2012 for kharafi national.

Samer G Younis

Vice Chairman & Managing Director

Message from the Vice Chairman & Managing Director

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JULY 2012

Operations newsWith a labour force that now exceeds 35,000, kharafi national is extremely busy on a wide range of construction projects ... booster stations, pipelines, gas processing plants, and power stations. instant access has landed an additional prestigious agency, while Equipment Division is generating a solid reputation for the transportation of extremely heavy loads.

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West Damiettapower plant

Work on KN’s third massive power plant project in Egypt is forging ahead.

as mentioned in the last edition of transmission, kn is constructing a 500MW power-generation plant on the Mediterranean coast just west of new Damietta City. the project is on track for completion in the autumn of 2012, and the numbers engaged on the project are now rising to the expected peak of 360 non-manual employees and more than 2,300 manual workers.

the project has already overcome several challenges. the unstable nature of the soil on the site due to the proximity of the sea has been overcome by kn’s engineering skills. the impact of delays in progress payments has been reduced by an adroit rescheduling of construction activities. ongoing security threats have been addressed by using a flexible plan to increase the security of the plant.

at kn, challenges are relished as learning opportunities. indeed, the company’s power plant projects in Egypt El-Shabab, Damietta and West Damietta have contributed enormously to its know-how and confidence.

these three very large projects are also enhancing the company’s reputation and strengthening its position in the field of power projects in Egypt and the wider Middle East.

EPCMoPErationS nEWS

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JULY 2012oPErationS nEWSConStrUCtion

the largest construction projects kn has ever undertaken are steaming ahead.

KN’s commitment to advanced safety practices is paying off: As of March 2012, the KOC-Petrofac Pipeline Project had achieved an amazing 6 million man-hours without an LTI.

Since koC new booster station in west kuwait, BS-171, was last discussed in transmission (see issue 28), the anticipated total quantity of concrete has been revised upwards to 68,000cu m, while the estimated amount of structural steel to be erected has been increased by 50% to 18,000mt.

kn’s work, as the main construction sub-contractor, is ongoing at Minagish and at the intermediate slug catcher in south-east kuwait. Works at the existing koC facilities of GC-17, GC-27 and GC-28 are in the finishing stages. Most of the buildings are also being finished. the erection of major pieces of equipment, such as flares and incinerator packages, began in early March 2012. tank erection also commenced recently.

the need to adhere to the strictest health, safety and environmental standards are presenting kn with the sort of challenges that built the company’s reputation in oil & Gas. nevertheless, at the end of March 2012, more than 27% of the overall work had been finished, with more than 50% of the plant concrete works poured, 40% of the structural steel erected, and over 22% of the piping fabricated. With around 250 non-manual and 2200 manual employees currently on site, the project is reaching its manpower peak.

Booster Station 171

Meanwhile, Petrofac is executing an EPC contract it was awarded by koC to install oil and gas pipelines from Mina al-ahmadi to the power stations in az-Zour and Shuaiba and build a pumping station. the overall length of the pipelines, which will supply fuel for these power stations, will be about 185km over a distance of 60km. kn is the sole sub-contractor for the entire pipeline and its associated facilities.

the scope of work includes the installation of the pumping station, the pig launchers and receivers, the metering skids, and the valve stations, as well as the pipelines and their associated electrical and instrumentation works including the buildings. aBJ is fabricating the piping and structural steel works, while hEiSCo is the lower-tier sub-contractor under kn for the pipeline works.

a major characteristic of this project is that much of the work has to be performed in areas that are not under the control of koC. the power stations are run by the MEW, while the refineries are operated by knPC. this makes for some challenging issues in coordination between all the players. Despite this, with 68% of the concrete already poured and 80% of the pipelines laid out, about two-thirds of the work has already been completed.

KOC- Petrofac pipelineKOC-Hyundai Pipeline

hyundai Engineering & Construction Company ltd is installing pipelines to carry low-sulphur fuel oil (lSfo), fuel gas and gas oil from Mina al-ahmadi to kuwait’s power stations in Sabiya and Doha, on behalf of koC. kharafi national is the sub-contractor on the construction of the stations for the pipelines, including all civil, mechanical, electrical and instrumentation works another massive project for kn.

Construction of the pipeline stations is in full swing. Major works in all disciplines, civil, piping, mechanical, electrical, instrumentation and hVaC, are proceeding at all locations: BS-180, kadma, Doha, Sabiya, and the koC and knPC areas in Mina al-ahmadi, Meanwhile piping is being fabricated by aBJ. about 25% of the overall work has already been executed.

Executing this two-and-a-quarter year contract will require the use of over 10 million man-hours. the 2,750 manual- workers currently on site are expected to reach their peak of 3,200 in the near future.

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as described in issue 27, GaSCo is building a fifth gas processing plant at habshan in the south-western part of the emirate. kn has been entrusted with the construction of the major portion of this prestigious project, the single largest construction project it has ever undertaken.

overall construction progress has already crossed the 70% mark. Piping installation is at its peak with more

Habshan - 5

than 3,000dia inches being welded every day in the field. Pipe testing is in progress, imparting momentum to the instrumentation and insulation works. the substations were energised at the end of May.

the employees on site are now at their peak of 12,000 manual and 1,200 non-manual workers. Exemplary team-work has enabled the project to achieve, as of the 6th april 2012, 26.2 million man-

hours without a lost-time incident out of a total of 43.5 million total man-hours worked.

Despite the highly adverse climatic conditions in the desert, the bulk of the work has been executed and the completion phase has just started. kn is confident that mechanical completion of the project, including testing and pre-commissioning, will be completed on time.

HABSHAN - 5 Process Plant

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oPErationS nEWSConStrUCtion

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JULY 2012

As well as obtaining certification from the Lifting Equipment Engineers Association, as written about elsewhere in this edition, ED has been particularly active in transporting extremely heavy pieces of equipment and in upgrading the power supply in the Habshan-5 labour camp.

The Equipment Division has the capability to transfer heavy equipment from one country to another in accordance with the needs of KN projects, thus ensuring that equipment is available wherever and whenever needed.

During December 2012, ED shifted two of its Nicolas six-axle modules to the Habshan-5 project in Abu Dhabi where they were used to transport 44 heavy pieces of equipment ... 24 stack units (11m high and 6m wide and weighing from 70 to 90 tons) and 20 pressure vessels (weighing from 60 to 180 tons).

Several Nicolas self-propelled modular transporters were transferred to Egypt where they were used to mobilize four gas turbines weighing 214 tonnes and four generators weighing 200 tonnes from Damietta Port to the site of KN’s 500MW power project in West Damietta.

Each trip entailed shifting a total moving load of about 260 tonnes a distance of approximately 16km.

EQUiPMEnt DiViSionoPErationS nEWS

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JULY 2012

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Additional Power for Habshan CampEquipment Division is responsible for generating power for the camp at the Habshan-5 project in Abu Dhabi. During phase–1 of the project, ED installed six 1,500 KVA low voltage generators with a total output of 7.2MW and three associated MV systems to supply 11kV electricity to the MV distribution network.

Local recruitment has several advantages compared to recruiting professional drivers and operators from overseas. It enables KN to hire skilled employees who already have local driving licenses and know locations and routes in Kuwait.

LOCAL RECRUITMENT CAMPAIGN

EQUiPMEnt DiViSionoPErationS nEWS

With phase–2 of the project, camp occupancy increased to 9,000 and, in conjunction with instant access, ED installed another six 1,250kVa low voltage generators with a total output of 6MW and two MV systems for supplying 11kV power to the distribution network, which was upgraded with two additional sections or loops to cater for the additional loads and a fourth substation. to optimize operating costs, EQD is waiting for the installation of two ring main units, which will make it possible to operate the generators in auto mode so that they can start and stop in accordance with the demand for power.

for health and safety reasons, the generators have been kept away from the accommodation area. in addition, the generators are containerized, sound attenuated and adequately sized, while the MV systems are skid mounted to minimize installation costs and provide easy demobilization and re-installation elsewhere should this be required.

ED can also test their skills on various types of equipment and ensure they have the knowledge they need before they are hired.

the Equipment Division recently ran a very successful local recruitment campaign from their MaB facilities. hundreds of candidates attended and those who were selected went through a systematic testing process arranged and supervised by the division.

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JULY 2012

Facilities ManagementInstutional & CommercialFacilities Management-Institutional & Commercial

a new printing press was constructed last year by kharafi national on behalf of arwa General Contracting Company in the north Subhan industrial area in kuwait. Designed by SShi (Salem al-Marzouk & Sabah abi hana international), it has a radically different form that was deliberately conceived to enhance the aesthetics of industrial areas.

normally the actual presses that do the printing are hidden at the back of a building. to make the process of printing as transparent as possible, SShi’s design has brought the presses to the front so they can be seen by passers-by looking down into the lower levels of the building.

this design philosophy, based on a new industrial aesthetic of grace, freedom and transparency, has been fortified by built-in efficiencies in the use of light and energy. as a result the design was one of just seven designs short-listed out of more than 100 new buildings in the Production, Energy & recycling category at the World architectural festival in Barcelona, Spain, in november 2011.

for kn, the main challenge in this project was the changes made, after the project began, to the size of the printing machines that were to be installed. these changes necessitated a redesign of the steel structure and the electrical power, air-conditioning and ventilation systems. in addition, kn had to work with a tolerance of just 1.5mm in each dimension during the installation of the presses. nevertheless, kn fM managed to complete installation five days ahead of schedule.

Designed by Salem al-Marzouk & Sabah abi hana international and constructed by kharafi national, arwa Printing Press has garnered international acclaim.

... by Senior Project Manager Mohamed hassan

kharafi national has joined MEfMa as a corporate member.

MEfMa - Middle East facilities Management association - is a nonprofit association that provides a dedicated platform for fM professionals.

kharafi national recently invited MEfMa to kuwait to review some of kn’s project and business support facilities such as the fabrication plant, equipment division, scaffold-ing unit, calibration laboratory and central stores. MEfMa was impressed by kn’s abil-ity to provide a comprehensive one-stop solution for its clients and projects, not only in kuwait but throughout the region.

kharafi national will join MEfMa in celebrating World fM Day 2012 as a platinum spon-sor from the UaE and kuwait as yet another testimonial of its commitment to the fM industry in the region.

Kharafi National joins MEFMA

fM - i & CoPErationS nEWS JULY 2012

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the successful completion of sewage and road maintenance contracts for the MPW in kuwait has enabled facilities Management (industrial Services) to secure two new 2-year contracts from the MPW for the same services. kn has also been awarded a 3-year contract for the maintenance of a sewage network in farwaniya Governorate.

in addition, the company has secured a five-year contract from koC for the provision of service personnel for the termomeccanica water injection pumps in the west and north of the country.

Meanwhile in the UaE, kn was recently awarded a contract by the abu Dhabi Sewage Services Company for the operation and maintenance of the Mafraq and Zakher waste water treatment plants (WWtPs) in abu Dhabi and al ain. the scope of work is similar to the on-going o&M works kn is carrying out in al Wathba and al Saad WWtPs in abu Dhabi. the duration of the contract is 82 months and the transition period started on the 1st March 2012.

Sewage Works &Water networks

Facilities Management-Industrial Services

fM - iSoPErationS nEWS

the water industry usually measures huge volumes in units of one billion US gallons. from the time that the Sulaibya plant first started commercial operation in December 2004 till 12th June 2012 it has treated 742,000,000cu m or 195 billion US gallons.

Sulaibiya WWtrP is well on its way to the significant milestone of 200 billion US gallons which it expects to achieve around the middle of august 2012. Compare this to an equivalent wastewater treatment plant in orange County California that recently attained 100 billion US gallons of water, but which has been in operation since 1965.

Sulaibiya WWTRP reaching 200 billion US gallons of product water

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JULY 2012

Instant Access has been extremely busy in Kuwait over the last three months. As well as achieving two notable firsts, it has signed an agency agreement with one of the largest equipment suppliers in the world.

Sany Heavy Equipment in october 2011 kharafi national signed an agency agreement with Sany heavy Equipment. founded in China in 1989, Sany Group is a truly global corporation in construction machinery. its product range is vast concrete machinery, excavators, crawler cranes, truck cranes, pile driving machinery, road construction machinery, port machinery, and wind turbines. While kn’s agency agreement only covers kuwait at present, it is expected to be extended to other countries in the future.

Each year, the group reinvests at least 5% of its revenues in r&D to expand its product line, with the result that it ranks 6th among the top 50 global construction machinery manufacturers. indeed, it is a leader in concrete pumping technology, and its concrete pumping trucks have been entered in the Guinness Book of records for having the longest booms in the world. Sany recently took control of Putzmeister, the no 1 brand in the world for concrete equipment.

instant access has received hundreds of enquiries about Sany heavy equipment. already ten major units have been sold and sales are strengthening. Senior management expects that the truck-mounted and crawler cranes will prove to be the most popular products in the kuwait market, followed by Sany concrete pumps.

A 1600 ton Sany crawler crane in action - available in Kuwait only from KN Instant Access

inStant aCCESSoPErationS nEWS

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Meanwhile, down in the UaE instant ac-cess is investing in the innovative Bravi leonardo self-propelled single-man access platform ... a superb platform that is perfect for facility management and mechanical and electrical contrac-tors who need to work in confined areas or at low-levels where traditional meth-ods such as scaffolding or step-ladders are becoming out-dated. With the Bravi leonardo, the opera-tor can manoeuvre himself into place, and raise and lower the platform upon which he stands in seconds ... with no risk of an accident, such as a fall from a height, even if he is working at the maximum height of 5.9 metres.

this machine also reduces costs sig-nificantly by saving on labour. When a step-ladder or something similar is used, it is common to see one man tak-ing a risk at the top whilst two men hold the ladder. By contrast, only one man is needed to operate the Bravi leonardo.

instant access UaE already has Bravi machines on site with a mechanical and electrical engineering firm which is us-ing 15 units to install electrical cables and lights.

instant access was the first company to sell Case’s latest product ... the Case D3550 Dozer ... in the Middle East. kn has been representing Case, the world’s leading manufacturer of light- to medium-sized construction equipment, in kuwait since 2004.

the D3550 dozer was not previously available in the Middle East market due to a lack of supporting services but this has now been remedied by kn. Case provided full training for the staff of instant access and kn Equipment Division.

Case D3550 Dozer

Bravi Leonardo Access Platform

the world’s largestcrawler-mounted access platform

only from instant access

instant access recently delivered the world’s largest crawler-mounted access platform, the doughty teupen leo 5oGt, to al-hamra towers which, at over 400m, is the tallest building in kuwait City. the teupen leo has a 50m vertical reach, a maximum outreach of just over 17m and a gross weight of 13,600kgs, making it ideal for external maintenance and façade cleaning of this iconic building.

Size Matters

inStant aCCESSoPErationS nEWS

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JULY 2012

QTECH is Kharafi National’s trading arm. However its identity and branding is separate and distinct from that of its parent. QTECH is building market share and expanding rapidly. ... operations Manager Saad om hani explains

Q-tEChoPErationS nEWS

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Quality Technical Supplies Co (QTECH) is registered in kuwait, the UaE and Egypt as a subsidiary of kn. its market identity, however, is separate from that of its parent company.

QtECh has three main business lines: pipes and steel products, mechanical products and equipment, and electrical equipment and instrumentation. Since 2006, QtECh has been following a strategy of diversification which is proving very successful. last year was a turning point for the company.

firstly in 2011, at least eight strategically important agencies were added to QtECh’s portfolio and negotiations were opened with several more principals. however, these new agencies will require a lot of business development and the recruitment of experienced sales engineers.

Secondly in 2011, QtECh’s cumulative sales of ductile iron pipes had exceeded 1.5 million metres at the year-end. Most of these pipes were from XinXing of China and were for potable water use. the company had also delivered cumulative fittings of more than 100,000 pieces by the end of 2011.

QtECh expects that the cumulative total will exceed 2 million metres in 2012, now that the Ministry of Electricity & Water in kuwait has approved XinXing for the supply of ductile iron pipes and fittings of up to 1600mm in diameter. this has opened a new lucrative market segment for QtECh.

While products from XinXing have recently been the largest contributor to QtECh’s turnover, the second largest contributor in 2011 was equipment from termomeccanica Pompe of italy, a leading maker of centrifugal pumps and compressors. its significant contribution is expected to grow following the finalization of a 5-year service agreement with koC, termomeccanica’s prime client in kuwait.

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Q-tEChoPErationS nEWS

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JULY 2012

in less than a decade the labour force in kharafi national has grown five-fold and now stands at approximately 35,000. as the company continues to expand in terms of numbers of employees, the types of projects it undertakes and the geographical spread of its operations, recruitment is ongoing.

Employees at kn fall broadly into two types: (a) regular employees who are subject to the company’s standard terms and conditions and (b) project specific employees who are hired for particular projects and who may be subject to terms and conditions based on the contractual requirements of a specific project. Employees are also categorised as manual and non-manual staff members.

the recruitment process at kn is thorough and effective. firstly, the human resources Department (hrD) receives a staff requisition form from the cost centre (department or project) concerned. hrD then sources candidates, arranges interviews for those shortlisted by the cost centre, and consolidates the assessment of technical skills made by the cost centre with the behavioural competencies noted by hrD during interviews.

the best applicant for a particular position is decided by mutual agreement between the cost centre and hrD and, following management approval, the chosen candidate receives a formal job offer. the close cooperation that takes place between hrD and the cost centre involved throughout the recruitment process is focused on ensuring that a new hire meets the requirements of the job he or she is to do.

A company expanding as rapidly as Kharafi National requires an efficient, cost-effective recruiting process to ensure it has all the skills it needs for its diverse activities. The recruitment process at KN is handled by the Human Resources Department on the basis of a well-defined and audited set of policies and procedures developed over years of experience.

Recruitment at KN

... Corporate Department Manager (human resources) terry tarvin explains

Terry Tarvin – CDM HR and Boby Kuriakose – Superintendent HR, interviewing Dimitrios Anagnostopoulos for a Senior Project Manager position in EPC.

hUMan rESoUrCESCorPoratE

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finding suitable candidates could be difficult for any rapidly-expanding company. however, hrD maintains a database with nearly 100,000 CVs. the department also makes use of internet job portals to access millions of CVs throughout the world. in addition, kn posts vacancies on its own website, advertises in a variety of media and requests CVs from more than 50 international recruitment agencies. hrD also makes use of client and employee referrals where appropriate.

kn uses a range of techniques to ensure that the education and skills of applicants meet job requirements. the cost centre interviews candidates to assess whether they have the expertise needed, while hrD and the cost centre assess the soft skills required.

Job descriptions have been drawn up for every non-manual regular position in the company and these descriptions are always used in assessing a candidate’s suitability for a particular position. in addition, hrD interviewers (and some cost centre personnel) are well trained by kn’s learning & Development Unit in competency-based behavioural interviewing a set of techniques specifically designed to eliminate bias in the selection process which is proving very useful in practice.

interviews are conducted face-to-face either through personal meetings or by using video-conferencing or webcam applications. Where these are not possible, interviews are conducted by telephone. for senior positions, an independent international hr consultancy is used to assess the management style and performance indicators of candidates.

the recruitment process at kn has been very successful in meeting the company’s demand for appropriately-skilled manpower. Much of this success is due to the strict ethical guidelines to which the hiring process is subject, which have been designed to ensure fairness. the fact that kn’s full hrD team in kuwait, UaE and Egypt is highly experienced (with with an average of 15 years hr practice each including 5 years with kn and is currently comprised of 15 different nationalities helps eliminate bias and favouritism in the selection process.

the policies and procedures governing recruitment are detailed more fully in kharafi national’s Quality Management System.

KN’s ability to generate employment recognized

in recognition of kharafi national’s remarkable contribution to the Middle East job market, Bayt.com presented kn with their Gold Career Provider Award on 24 June 2012.

Bayt.com is the Middle East’s no1 job site and, based on kn’s usage of the site as an employer and the number of positions kn has posted and filled, they have identified kharafi national as one of their top 20 companies providing career opportunities in the Middle East.

hUMan rESoUrCESCorPoratE

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JULY 2012

A survey of employee impressions and attitudes to the quality of the internal services they receive was undertaken by Kingsland Consulting International Ltd in late 2011. The results were highly positive. Nevertheless steps to improve efficiency at all levels have been initiated.

... operational Efficiency improvement team leaderrobert fogelman explains

Kharafi National Employees Survey 2011the objective of the survey was to establish a snapshot of the perceptions that kn employees hold of the quality of the internal services they receive from a number of departments. kn selected 16 departments (13 administration/project support services and 3 operations departments) for the inquiry.

the same five questions inquiring into service quality were asked about all 16 departments. the service factors to be rated on a 5-point scale by the respondents were: responsiveness, friendliness, speed, the pro-activeness of service providers, and whether the requirements of service receivers had been met.

in addition, an open ended question invited suggestions for specific improvements for each department. a further section of the survey asked respondents to self-assess the quality of service provided by their own departments. a final question invited any other feedback respondents might want to give on improving kn internal services.

the survey was launched on 22 november 2011 and closed on 11 December 2011. a total of 4,720 full responses were received with 25,000 comments, which constituted a very good 82% response rate.

hUMan rESoUrCESCorPoratE JULY 2012

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the survey findings painted a positive picture of kn employees’ perceptions as to the quality of the services they receive. the majority of respondents appear to be satisfied with the levels of service they obtain from the 16 departments.

a qualitative analysis of thousands of comments on suggested improvements and perceived shortfalls created a much richer picture for each of the departments as well as for the organization overall.

themes that stood out were a considerable willingness by employees to learn and a desire for the organization to improve its services. We also found that many employees are very proud to be part of kn which is something the organization should harness for the future.

a strong theme which emerged overall was people’s eagerness that kn build on what many perceive as its good and solid foundation and improve this further for business growth and prosperity.

in the main, these comments were not complaints about things that were going wrong and had to be fixed, but were expressions of a positive and forward-looking spirit. Many remarks articulated both an individual willingness to work hard and improve and individuals willing and urging kn and its management to create the conditions in which continual improvement can occur.

Findings

Improving efficiency at KN

in late December 2011 an ‘operational efficiency improvement’ (oEi) team was established to coordinate and lead the effort to realize the efficiency-performance goals of kharafi national.

the oEi team’s first step was to coordinate and attend a briefing of the kn executive management team about the detailed survey results by the kingsfield consultants. this was completed in mid-January directly after the bi-annual directors meetings, strategic sales plan and the annual corporate strategic review by MD Samer Younis.

the next step was to review the kingsfield survey and comments and to prepare individual detailed reports for each department surveyed. Copies of these reports were sent in early february to all directors, managers and key members of each department surveyed for their review.

Department teams were requested to review the survey items in their report and identify those actions that would improve the efficiency of their respective areas. they were also asked to consider efficiency initiatives that were not identified in the kingsfield survey.

this exercise was completed in early March 2012. Detailed focused responses and actions for improvement from all departments showed the benefits of this initiative.

the oEi team were then in a position to prepare a detailed action report on all 16 departments for information, approval and action by kn’s executive management.

Many of the items identified in the action report are now being further developed and implemented. the oEi team will continue to follow up with all areas to assist with the development and implementation of these initiatives on efficiency.

in approximately six months from now, a final survey to review the improvements in performance of all areas will be carried out. this survey will have a strong emphasis on the follow up of the development and implementation of ideas and actions identified from the first two surveys and their subsequent reviews.

Future actions

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the libya oil & Gas Summit 2012 was the first conference on oil and gas held under the patronage of the libya national transitional Council. it took place in the Parco dei Principi Grand hotel & Spa in rome, italy, from the 21–22 March 2012. kharafi national was one of the sponsors.

the focus of the conference was on rebuilding the libyan economy with particular emphasis on emerging business and investments opportunities in the power, water and wastewater, enhanced oil recovery, airports, railway and metros, and telecommunication sectors.

at the fourth town hall meeting between kuwait oil Company and its contractors, on the 19th March 2012, Corporate hSE Manager Don Brown delivered a presentation ‘kharafi national – a Culture of hSE Excellence’.

the presentation highlighted kn›s achievements in successfully implementing its hSE management system, reducing its ‘lost time incident’ rate from 0.24 to 0.12 in five years in spite of a consistent increase in its manpower and the continued diversification of its operations, and in complying with ohSaS 18001 standards throughout its areas of operations.

KOC’s Fourth Town Hall Meeting & Exhibition

Libya Oil & Gas Summit 2012

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kharafi national was a platinum sponsor of this two-day

conference which was held at the Crowne Plaza hotel in

kuwait from the 25th to the 27th March 2012.

the conference examined four main areas concerning

the potential for and the development of infrastructure

investments in kuwait; (1) the identification of infrastructure

projects and investment opportunities in kuwait this year

and in the future; (2) the modernisation of infrastructure

and standards in orwder to attract international and

local investment; (3) the stimulation of growth in social

infrastructure and the review of related environmental

challenges; and (4) the development of mega projects that

enhance infrastructure.

kharafi national was a platinum sponsor of the conference

and had a booth where it promoted its achievements as a

major player in infrastructure development projects in

kuwait and the arabian Gulf region.

over 1,200 people from many different countries

attended the South Sudan investment Summit 2012

which took place in Juba, South Sudan, from the 20th to

the 22nd of March 2012.

all governmental entities and non-governmental

organizations involved in South Sudan, as well as over

100 commercial companies, participated in this ground

breaking event, the first of its kind to be held in Juba.

the South Sudan investment Summit brought together

forward thinking and innovative investors who met

with South Sudan’s government ministers, their chiefs

of staff and the chief procurement officials from their

departments, as well as various nGos.

the summit was addressed by kn Director of Business

Development khaled tubaileh. as a gold sponsor of the

summit, kharafi national gained valuable exposure,

and terrific networking and business opportunities.

The South Sudan Investment Summit 2012

Infrastructure Investment Kuwait 2012

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JULY 2012

the purpose of rEUSE 5.0, which ran from the 19th to the 22nd of april 2012 at the australian College in kuwait (aCk), was to encourage eco-friendly living in kuwait.

the exhibition space was constructed by kn on behalf of en.v, an organisation dedicated to social responsibility in the arab world, on a 5,000sq m parking lot on the aCk campus.

this fifth rEUSE event gave non-profit organisations, companies, professionals and aspiring creative talents an opportunity to showcase their achievements in the fields of social responsibility and sustainability to the general public.

the four-day event closed with a three-hour interactive celebration of Earth Day which was attended by students from seven schools in kuwait.

kn used its involvement in the event to project its vision to better the community of kuwait through education and innovation and to promote its capabilities in sustainable infrastructure development.

KN constructsREUSE 5.0 in Kuwait

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Companies operating in the UaE are now obliged to transfer the salaries of their employees through the UaE’s new wage protection system (WPS), which has been designed to protect the right of workers.

to participate in this system, a company selects an agent licensed by the Central Bank UaE. once the agent receives the employees’ salaries, it notifies the protection system. the system sends the workers’ details (regarding wages to be paid etc) electronically to the Central Bank, which in turn forwards those details to the Ministry of labour to ensure that they are correct. the system then sends approval to the agent so the wages can be paid.

Up to recently kharafi national Co llC abu Dhabi had been paying employees using various service providers, which was complex, inefficient, and costly. the company needed a more effective payment method that would also meet the requirements of the wage protection system.

Citi Prepaid Services provided a solution by developing a reloadable prepaid card that enables workers to be paid monthly safely and securely. they also developed a customized 24//7 multilingual customer service manned by staff fluent in English, arabic, Urdu, Bengali, tamil, Malayalam, telugu and kannada.

kn employees in the UaE can use these cards anywhere Visa is accepted and to transfer money home, without having to handle cash directly. they can also use the cards to get cash at any atM. Citi Prepaid Services has also installed nine atMs at kn offices and sites that provide 24-hour access to cash.

By working with Citi Prepaid Services, kharafi national became WPS compliant quickly, reduced its costs and provided its employees a more efficient method of payment customised to their exact needs.

Kharafi National Fully Compliant with UAE Wage Protection System

Using Citi, an international bank, as its agent, KN is now fully compliant with the new wage protection law in the UAE and has received a client excellence award from the bank.

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JULY 2012

al-Saad WWtP is located near al-ain City. it is part of independent Sewage treatment Plants one (iStP1), the first privatisation project in the waste-water sector in the UaE, which was described in issue 29 (December 2011) of this newsletter.

as a member of the consortium that obtained this build-own-operate-transfer (Boot) project from the abu Dhabi Water & Electricity authority (aDWEa), kharafi national was the main EPC contractor. kn is now operating and maintaining the plant and will continue to do so until it is transferred back to aDWEa at the end of the 25-year concession.

the plant at al-Saad is designed to treat a maximum of 92,000 cubic metres of waste-water a day to a very high level of purity. Daily flows have now reached about 80,000cu m, and the new plant is already bestowing immense benefits on the communities living in al-ain City.

al-Saad is processing the ever-increasing volumes of wastewater arising from the ongoing expansion of al-ain’s population. at the same time, the new plant is reducing the cost of wastewater treatment by making it possible for several sewage pumping stations in the area to be closed, which will save on energy costs

and on operational and maintenance expenses, and reduce the stress on and thus maintenance costs of existing wastewater networks. By outputting high quality water for irrigation purposes, al-Saad is also contributing to the conservation of drinking water.

Privatisation is part of the UaE’s strategy for its economic development, which is expected to deliver inward transfers of advanced technology, increases in production efficiency and reduced operating and maintenance costs. Encouraging private investment provides new job opportunities for citizens, while the sale of concessions enables enhanced spending for social purposes. the al-Saad plant has certainly contributed all these benefits, and demonstrates how kn is making effective contributions to the well-being of the communities in which it operates.

the technology used in al-Saad represents an exemplary instance of a successful inward transfer of technology. it is the only plant in abu Dhabi to use emitted bio-gas to generate electrical power, and its anaerobic organic decomposition reservoirs can release enough organic gas to generate 25% of the power needed to operate the entire plant.

Technologically-advanced STP Inauguratedthe first independent sewage treatment plant in the UaE, al-Saad StP, was inaugurated on the 23rd of January 2012. the successful commissioning of this plant has enhanced kn’s reputation as an innovative leader in the wastewater sector and as a contributor to the region’s development.

as always with kharafi national, concerns for health, safety and the environment have been addressed in the project. for example, the hypochlorite used for disinfection is generated on site from sodium chloride (table salt) this reduces the hazards associated with the transportation and handling of chlorine gas, which is toxic, another first in the region.

the innovative solutions used to design and construct al-Saad WWtP have promoted kn as a local pioneer in the protection of the environment and as a company that takes its corporate social responsibilities very seriously indeed. in addition, the successful commissioning of al-Saad StP has strengthened kn’s position as the regional leader in the wastewater sector and has positioned it to pursue larger projects in the new markets that are opening up in the Middle East.

the inauguration of this technologically-advanced wastewater treatment plant at al-Saad took place under the auspices of hh Sheikh tahnoon Bin Mohammed al-nahyan, the ruler’s representative in the Eastern region of abu Dhabi, in the presence of officials from government organisations and guests from across the region.

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1st Privatized Wastewater Project in the UaE80,000cu m per day total wastewater treatment capacity25% of plant power needs bio-gas co-generatedOn site production of chlorine disinfectant 25 year concession

ISTP 1 Wastewater treatment plants

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JULY 2012

A Genuine Commitment kharafi national’s attitude to corporate environmental responsibility is expressed by its genuine adherence to environmental sustainability in the execution of all its projects and its continuous promotion of sound environmental management practices.

kn’s environmental policy states that the company will manage its operations in ways that are environmentally sustainable›. this succinct statement sums up the company’s commitment to sustainable development and underpins kn’s approach to corporate environmental responsibility.

By placing a heavy emphasis on environmental sustainability, kn is aiming for long-term success in contributing economically, environmentally and socially across the Middle East region and in the other areas in which it operates.

to minimise the adverse environmental impacts arising from its operations, kn promotes sound environmental management practices. these practices include direct efforts to prevent pollution and the application of reduce-reuse-recycle principles in all aspects of its operations.

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kn is in full compliance with kuwait EPa regulations. it conducts environment impact assessments during project planning and continuously monitors and reports environment-related issues during execution. its good environmental practices include voluntary green initiatives at project sites and ongoing efforts to conserve power and water. By continually improving its performance on environment-related issues, kn goes far beyond legal compliance with current regulations.

Construction work generates a great deal of waste which must be disposed of in an environmentally sound manner. Because different types of waste require different treatments, kn uses a colour coding system for waste containers which enables waste matter to be segregated appropriately before being sent for recycling. kn promotes awareness of environmental issues among its employees and other stake-holders. By linking environmental responsibility with basic business issues such as cost savings, efficiency, competitive advantages, and quality and safety management, the company induces its employees to implement its policy of environmental sustainability. infrastructure Project Development, kn’s leading business line, focuses on environmental projects. kn built the Sulaibiya WWt&rP in kuwait and the StPs at al-Saad and al-Wathba in the UaE and is now operating these plants which, together, recover over 600,000 cubic metres of irrigation quality water from sewage. the company’s expertise in the reclamation of waste-water is helping to sustain the environment and, at the same time, contribute to the development of the region.

Many companies pay lip-service to their responsibilities regarding the environment, while disguising the environmentally destructive nature of their operations. this is not so at kn, which is using its expertise to follow good environmental practices that will preserve the environment for society and future generations.

kn participated in the kuwait Green Building forum (kGBf) on the 23rd and 24th of May 2012. the kGBf provides a platform for exploring the latest trends in green building, while at the same time it educates and informs participants about the latest green products, services and technologies.

kn was awarded ‘certificate of appreciation’ by hE Dr fadel Safar a Safar, Minister of Public Works and State Planning & Development affairs.

the company has already been recognized by kUna (kuwait news agency) as the main contractor capable of leading the new movement to develop green building in kuwait.

KN participates in the Kuwait Green Building Forum

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the afED conferences are held on an annual basis in Beirut, lebanon, under the patronage of hE the President of the republic of lebanon General Michel Sleiman. about 500 individuals, private companies and nGos participated in 2011 and the number is expected to rise for this year. other than the members of afED, participants include ministers and government representatives as well as observers.

last year the theme was the transition to a green economy in the arab World. as soon as visitors entered the exhibition hall their attention was grabbed by the striking promotion of the Utilities Development Company (UDC) and Sulaibiya WWtrP at the kn booth. the exhibits, along with the presence of MD Samer Younis on the afED board of trustees, demonstrated the importance with which kn views environmental projects.

Dr adnan Badran, chairman of the afED board of trustees, opened the proceedings with a brief exposition of where the arab World stands within the global environmental movement. While the rest of the world is investing in green jobs and economies, the Middle East and north africa is struggling to face the reality of a US$95 billion degradation of its natural resources. Yet, MEna is one of the hardest-hit regions, andrew Steer, a vice president of the World Bank, stated when reviewing the impact of climate change in general.

José María figueres olsen, a former president of Costa rica, who is currently the president of the Carbon War room (see box), described how environment-friendly policies and the use of public-private partnerships (PPPs) generated substantial growth in green jobs and eventually a green economy that accounts for up 14% of Costa rica’s GDP.

During the two-day conference, papers on agriculture, waste management, green energy, transport and tourism among other topics were presented and debated.

for 2012, the theme and focus will be “Ecological footprint and Survival options in arab Countries”.

Transitioning to a greener economythe importance of environmental projects to kharafi national was emphasized by its sponsorship of the annual conferences of the arab forum for Environment and Development.

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the arab forum for Environment and Development is a regional non-governmental, not-for-profit organization. afED is a centre for the exchange of expertise among persons and organisations environmental nGos, academic experts, research centres, media and members of the business community concerned about environmental issues and sustainable development in the arab world.

the forum creates links between arab chambers of commerce and industry, scientific research centres and educational institutions in the region with the aim of fostering the development of joint environmental programmes. afED also seeks to prompt governments to develop laws that address the nature of the environmental problems prevailing locally in an appropriate manner, to put these laws into effect, and to enforce them.

Further information about the Forum and its activities can be found on:www.afedonline.org.

a commitment to environmental responsibility is an important and intrinsic component of kharafi national’s corporate values and beliefs. this commitment is whole-hearted.

to take this commitment one step further, kn is launching an environmental awareness campaign directed at its staff.

tarsheed, or ‘rationing’ in English, is an appropriate name for this campaign as its purpose is to show each and every employee how to lead a more sustainable lifestyle at work and at home.

twice a month for the next year, tips and information will be broadcast by email to staff members.

this will remind everyone to be more environmentally responsible, and will help kn and its employees build a more sustainable working environment and thus a better and greener future for all.

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JULY 2012

EARTH HOURSWITCH-OFF BY KN

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Earth hour is a symbolic gesture to raise awareness about excessive energy consumption and its damaging effects on the environment. kharafi national’s commitment to the preservation of our planet as a human habitat was illustrated during Earth hour 2012.

hundreds of millions of people and businesses around the world unite each year to support a plea to stop the despoiling of our planet by switching off their lights for one hour beginning at 8:30pm local time on the last Saturday in March. the event is observed in 147 countries and over 5,200 cities around the globe, including 124 cities in China which recently overtook the USa as the world’s worst polluter.

Earth hour expresses the demand of rational people everywhere that lasting action be taken for the sake of our planet.

kn is the facility management service provider at al-Zeina at al-raha Beach Development in abu Dhabi in the UaE on behalf of alDar, a property developer. With 34 villas and 1187 apartments and townhouses as well as retails outlets, a beach, gardens, and recreational facilities, the development is very large. kn has 136 people on site, 37 direct employees to maintain the MEP facilities and 99 employees of sub-contractors for housekeeping, security, concierge, and lifeguard services.

al-Zeina’s participation in Earth hour 2012, which took place on the 31st of March, was a joint proposal by alDar and kn.

the initiative was approved by the management of al-Zeina. Beginning at 8:30pm on the day, all non-essential lights and power sources in the development were switched off for one hour.

as is the norm at kn, the entire event was planned thoroughly in advance, with an emphasis on health and safety. Steps were taken to ensure that all essential lighting and power systems, such as aircraft warning lights and power for residences, shops and car parks as well as security systems, were not switched off. all staff received appropriate safety training in case they needed to respond to an emergency during the shut-down and flood-lighting for emergency use was put in place.

to ensure that the shut-down and restoration of power was done properly, the entire kn team were on duty at al-Zeina during Earth hour 2012. fire-wardens with Co2 cylinders and staff trained in first-aid patrolled the area, and persons using candles were monitored closely.

the event was a resounding success. Meter readings before and after the one-hour shutdown show that 1531 kilowatt-hours of energy were saved and carbon dioxide emissions were reduced by 834.85 kilograms. lighting, power and air-conditioning accounted for 59% of the energy savings, while the ventilation systems used 41% less power.

ALDAR expressed great satisfaction with Kharafi National’s efforts during Earth Hour 2012 and at the lengths KN is prepared to go in order to satisfy its clients. Indeed, the success of Earth Hour 2012 at Al-Zeina illustrates KN’s capabilities in energy savings and its ability to protect the environment.

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Name:amr ismail ibrahimTitle:Business Development ManagerBusiness unit:Corporate BD DepartmentLocation:kuwait

Name:Eric andre Pierre lecesneTitle:Senior operations ManagerBusiness unit:EPCLocation:kuwait

Name:Girish PillaiTitle:Construction ManagerBusiness unit:aMMroC project Location:UaE

Name:alain SalibaTitle:Business Development ManagerBusiness unit:Business DevelopmentLocation:UaE

New faces Name:Dimitrios anagnostopoulosTitle:Senior Project ManagerBusiness unit:EPCLocation:kuwait

Name:El-Sayed Salah Eid abou El-kheirTitle:Unit head Equipment field ServicesBusiness unit:Equipment DivisionLocation:Egypt

Name:alec tahir BakerTitle:Business Development ManagerBusiness unit:Corporate BD DepartmentLocation:iraq

PEoPlECorPoratE

West Damietta power plant

Booster Station 171KOC-Hyundai Pipeline

KOC- Petrofac pipelineHabshan 5

Sany Heavy EquipmentCase D3550 Dozer

Bravi Leonardo Access Platform

KN constructs REUSE 5.0 in Kuwait

Heavy Transportion activiesAdditional Power for Habshan CampLocal Recruitment Campaign

05

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1008

Operation News

Construction

Instant Access

Corporate - Events

FM-I S

Equipment Division

14QTECH

FM-I&C

Kharafi National Employees Survey 201118Corporate - HR

KOC’s Fourth Town Hall Meeting & Exhibition Libya Oil & Gas Summit 2012The South Sudan Investment Summit 2012Infrastructure Investment Kuwait 2012

20Corporate - Events

Contents

PEOPLECORPORATE

Name:Jawaid EqubalTitle:Operations SpecialistBusiness unit:Gasco IGD Habshan-5 Process PlantLocation:The UAE

Name:Kenneth Percy ShortenTitle:Contract Administration ManagerBusiness unit:Contract Formation DepartmentLocation:Kuwait

Name:Medhat Said Abdelkhalek Elgendy Title:Operations SpecialistBusiness unit:Gasco IGD Habshan-5 Process PlantLocation:The UAE

Name:Paul Kenneth FordTitle:Senior Sales ManagerBusiness unit:Instant Access - KuwaitLocation:Kuwait

Name:Reda Ahmed Abdelsalam ElgamasyTitle:Construction ManagerBusiness unit:Gasco IGD Habshan-5 Process PlantLocation:UAE

Name:Salvatore PittariTitle:Services Specialist Business unit:Gasco IGD Habshan-5 Process Plant Location:UAE

Name:Venkata Narasimba Murthy BurelaTitle:Senior Contract AdministratorBusiness unit:Gasco IGD Habshan-5 Process PlantLocation:UAE

Enhancing industrial aesthetics