Kuwait Oil Company A Subsidiary of Kuwait Petroleum Corporation
www.kockw.com Lafayette, Louisiana Doing Business with Kuwait Oil
Company Slide 2 www.kockw.com Agenda 1.KOC Strategy 2.Drilling
Activities 3.KOCs Portfolio of Major Projects for Intl. Contractors
4.Business Opportunities Slide 3 www.kockw.com KOC Strategy Slide 4
www.kockw.com Kuwait Foreign Petroleum Co. Kuwait Oil Company
Kuwait National Petroleum Co.Oil Development Co. Petrochemical
Industries Co. Kuwait Gulf Oil Co. Oil Sector Services Co. Kuwait
Aviation Fueling Co. Kuwait Oil Tankers Co. Kuwait Petroleum
International KPC Companies Slide 5 www.kockw.com To explore,
develop and produce to marketable quality the hydrocarbon resources
in the State of Kuwait. To safeguard our people and the
environment. To conduct our business in accordance with government
policy, good reservoir management practice and by using the most
efficient and economic means available. Mission Slide 6
www.kockw.com Achieve a leading global position in Upstream Oil
& Gas as an integrated, value- driven enterprise, by:
Maximizing the strategic value from oil Realizing the potential of
gas Growing reserves for a sustainable future Being an employer of
choice Realizing value from technology Strengthening our commitment
to HSSE Striving for excellence in performance, and Contributing to
the Enterprise and State. Vision Slide 7 www.kockw.com Key Feature
of our Strategy Achieve the following production targets 3.0 MMBOPD
by 2010 3.5 MMBOPD by 2015 4.0 MMBOPD by 2020 and maintain it until
2030 Develop Heavy Oil Produce 600 MMSCFPD of free gas by 2010/2011
and increase to 1,000 MMSCFPD by 2015 Pursue aggressive exploration
program including the offshore. Slide 8 Challenges Developing high
pressure high temperature complex gas reservoirs Develop heavy oil
to reach 450 MBOPD by 2030 Skilled and Experienced Manpower Water
Management Technology Environmental issues Slide 9 www.kockw.com 2
- Drilling Activities Slide 10 www.kockw.com 225220 Slide 11
www.kockw.com 266 589 668 764 884 924 128 87 Slide 12 www.kockw.com
12 22 27 36 43 73 71 74 68 66 Slide 13 www.kockw.com Slide 14 14
ServicesContractors Cementing Halliburton DowellSchlumberger BJ
Services, USA National Petroleum Services Co. Int'l Serv. Company
Int'l Serv. Company Int'l Serv. Company Local Mud MI, Baroid
Halliburton Baker Hughes Egyptian Mud Engineering Co. Int'l Serv.
Company Int'l Serv. Company Int'l Serv. Company Regional
Directional Drilling, MWD & LWD Anadrill Schlumberger Sperry
Halliburton Baker Hughes Weatherford Int'l Serv. Company Int'l
Serv. Company Drill Bits Baker Hughes Reed Smith Varel Int'l Serv.
Company Int'l Serv. Company Coring DBS Halliburton CorproInt'l
Serv. Company Mud Logging International Logging (Weatherford)
GeologInt'l Serv. Company Gyroscopic SurveyGyrodata, USAInt'l Serv.
Company Fishing & Tools Rental Smith International
WeatherfordInt'l Serv. Company Tubular Inspection Al-Mansoori
Engineering GENAPESCORegional Well Control & Snubbing Svcs Wild
Well Control Hi Arctic Energy ServicesInt'l Serv. Company Turbo
Drilling ServicesSmith InternationalInt'l Serv. Company Slide 15
www.kockw.com 3 - KOCs Portfolio of Major Projects for Intl.
Contractors Slide 16 www.kockw.com The projects are classified as:
1. Pipeline projects (3 Nos.) 2. Gas projects (2 Nos.) 2. Injection
projects (3 Nos.) 3. Safety & Instrumentations (4 Nos.) 4.
Electrical projects (3 Nos.) Major Infrastructure Projects (coming
2 years) Slide 17 www.kockw.com Pipeline Projects (1/2) FUTURE
PROJECTS (Contd.) EF/1713 Installation of Low Sulphur Fuel Oil
(LSFO) pipe line from MAA to Sabiya Power Station and Fuel Gas Line
(LPG to Doha/Sabiya & NK Fields) Tender issue Sep-09
Installation of 170 Km LSFO Line 1x24 from Al-Ahmadi Refinery to
North Kuwait Power Stations (Doha & Sabiya). Also, installation
of a new cross country pipeline (2x48) fuel gas (approximately 170
km each) from LPG plant at Al-Ahmadi Refinery to supply NK power
stations & NK KOC facilities complete with pumping, metering
system, and corrosion monitoring. EF/1760 New Gas Oil Pumping
Station at MAA with Pipelines from MAA to Azzour and Shuaiba Power
Stations Tender issue Sep-09 Install New Gas Oil Pumping Station
with VSD & install a new Gas Oil Pipeline 1x18 from Al-Ahmadi
Refinery to south Kuwait Shuaiba Power Station (5 Km) with metering
station. Also, installation of 2X40 Fuel Gas Lines (65km each) from
MAA to Azzour Power Station. Slide 18 www.kockw.com EF/1727 A New
30 Crude Oil Transit Line (TL-4) Tender issue Oct-09 Extension of
Point A manifold in North Kuwait and installation of a new 30 cross
country pipeline (approximately 120 km) from Point A to the new
Central Mixing Manifold. The Pipeline will have sectionalizing
valves and leak detection system and metering station. With all
associated Instrumentations and Electrical works. Launchers &
Receivers. FUTURE PROJECTS (Contd.) Pipeline Projects (2/2) Slide
19 www.kockw.com Gas Projects (1/2) EF/1719 Construction of a New
BS 132 & enhancement at BS-131 NK Tender issue Apr-09 (Under
Evaluation) Provision of a new grass root gas Booster Station,
BS132 in North Kuwait. BS132 will have a single train of 250MMSCFD
capacity, including LP1, LP2 and HP compressors followed by gas
dehydration. Each compressor will have its own gas turbine driver.
The new BS132 is designed to operate in parallel with existing gas
booster station BS131, taking suction from the NK LP gas network
from GCs 15, 23, 25 & 24 at approximately 10psig and
discharging into the existing export system at approximately
925psig. The enhancements of existing BS131 to include new LP and
HP inlet separators, control and instrumentation upgrades
(including cross communication with BS132) and provision of new HP
and LP flare knock out drums and flare stacks. New tank vapour
centrifugal compressor at each of the existing gathering centres
GC15, GC23 and GC25. 14 new pipelines to interconnect between GCs
and Booster station ( 8 to 48) 10km in length. FUTURE PROJECTS
(Contd.) Slide 20 www.kockw.com EF/1718 New Booster Station BS-171
WK Tender issue Aug-09 The project scope shall consist of
Engineering, Procurement, Construction, Commissioning of a new
grass root Booster Station (BS-171) in west Kuwait, will comprise
three new identical two stage compressor trains (LP & HP),
including gas & condensate dehydration trains. Each train shall
be capable of processing 125 MMSCFD sour gas, from Gathering GC-17,
GC-27, GC-28 and future GC-16. One TV compressor capacity 6 MMSCFD
at GC-27. One TV compressor capacity 8 MMSCFD as spare, at GC-28.
The above includes significant quantity of inter-connecting
pipelines including a manned Mid-Stream Slug Catcher facility.
FUTURE PROJECTS (Contd.) Gas Projects (2/2) Slide 21 www.kockw.com
Injection Projects (1/3) FUTURE PROJECTS (Contd.) EF/1071 Effluent
Water Injection Ph-I NK & Central Sea Water Injection PH II NK
Tender issue Nov-09 Collect and transfer effluent water from GC-15,
23 & 25 to an expanded Central Injection Pumping Facility
(CIPF). Expand Sea Water Treatment Plant from 300 500 MBWD. The
project include the expansion of the following plants: - GC- 15, 23
& 25, Sea Water Treatment Plant (SWTP), Central Injection
Pumping Facility (CIPF) and the tie-in of GC-24s Effluent Water
pipeline to the CIPF. The SWTP is located on the coast at Sabriyah
and connected to the CIPF via a 48Km 36 link line. Slide 22
www.kockw.com FUTURE PROJECTS (Contd.) Injection Projects (2/3)
EF/1772 Wara Pressure Maintenance Project (WPMP) Tender issue
Feb-10 This project is required to provide pressure support for
Wara formation in the Burgan field. The Wara Project includes a new
water treatment facility taking 1,000,000 BWPD of produced water
directly from existing Balance Tanks at Effluent Water Disposal
Plants I & II, after treating it is transported via a high
pressure (2200 psig) pipeline to 200 injection wellheads. The 200
new water injection wells are required to meet sub-surface needs
for water injection through 22 manifolds (average 10 wells per
manifold). The synopsis of scope consist of : 20 Tanks ranging from
10,000 BBLs to 240,000 BBLs 60 Pumps, ranging from 175 BHP to 3900
BHP 10 - Water Treatment Units, Induced Gas Flotation Units. 700 Km
of Pipeline Systems, Various Sizes ranging from 6 to 30. Location
near GC 14. Slide 23 www.kockw.com FUTURE PROJECTS (Contd.)
Injection Projects (3/3) EF/1761 Effluent Water Injection Plant
Ph-II NK Tender issue Jan-11 This project is required to provide
pressure support for Sabriya & Raudhatain fields in NK. To
achieve this it is required to provide injection facility with a
capacity of 500 MBWPD by the year 2013/2014. This project has a
dual purpose of pressure maintenance and environmental objective.
Effluent water will be collected from 4 oil gathering centers GCs
15, 23, 25 & 24 in NK. The facility will comprise of water
collection, treatment and injection at pressures between 2400 psig
and 3700 psig in a total of 150 injection wells utilizing
approximately 250 KM of pipelines ranging from 6 to 30. Tanks 2 100
MBWPD Pumps 15 Water treatment facilities 1 Slide 24 www.kockw.com
EF/1605 SCADA for all Wells in SEK Field Tender issue Apr-11 To
install SCADA at all SEK wellheads (approx 1122 wells) to control,
measure & transmit wellhead (tubing & casing as applicable)
pressures and flow lines pressures. In addition adequate provision
20% for future wells & provision of spare RTU & SCADA
System at 14 GCs. Safety & Instrumentation Projects (1/2)
FUTURE PROJECTS (Contd.) Installing Surveillance Systems, Access
Control Systems and Intruder Detection Systems at (96) sites that
includes Gathering Centers, Booster Stations and other facilities
of the Company distributed across the Kuwait oil fields and can be
considered a scheme of National scale. The integrated security
system will provide monitoring and control functionality at (4)
Regional Asset Security Centers and a Central KOC Security Center
which shall be built as part of this project. The scope of work
will include design, supply, installation, configuration and
commissioning of a 1300KM Fiber Network that shall provide
connectivity to over 2500 cameras, security management systems,
alarm monitoring stations and access control systems. EF/1700
Integrated Security system in all KOC Facilities Tender issue
Jul-09 Slide 25 www.kockw.com Electrical Projects (1/2) FUTURE
PROJECTS (Contd.) EF/1763 New 72 MW Raudhatain D Substation Tender
issue Aug-10 New 132 KV Main Intake Substation Raudhatain "D" of
(72 MW) capacity to run 200 Electrical Submersible Pumps (ESP)
including installation of 11 KV Switchgears, transformers, O/H
lines, power & control cabling to downstream company S/S etc.
in Raudhtain fields. EF/1764 New 72 MW Sabriya B Substation Tender
issue Aug-10 New 132 KV Main Intake Substation Sabriyah "B" of (72
MW) capacity to run 300 Electrical Submersible Pumps (ESP)
including installation of 11 KV Switchgears, transformers, O/H
lines, power & control cabling to downstream company S/S etc.
in Sabriya fields. Slide 26 www.kockw.com FUTURE PROJECTS (Contd.)
Electrical Projects (2/2) EF/1600 Enhancement to Substations and
Control Rooms at SE&K GCs, BSs, NTF & STF and Replacement
of M52 Substation at MAA Tender issue Apr-11 The main objective of
this project is the safe operation of the oil facilities
demonstrated in reconstruction of a number of existing substations
and control rooms in a way that would provide the necessary safety
for personnel and equipment. This objective will be accomplished by
the following: 1] Construct two story elevated, blast proof control
rooms, and maintenance offices for 9 company oil/gas facilities
(7GC's 1,3,6,7,8,20 & 21 & 2 Boosters stations). 2]
Construct safe, elevated, centralized electrical Substations /
switch rooms with advanced equipments at 19 locations through out
SEK fields (14 Nos. SEK GC's and Booster Station 140 and 150,
NTF,STF & M52). 3] Power Distribution SCADA for SEK field
including SCADA control room. Slide 27 www.kockw.com 4 - Business
Opportunities Slide 28 www.kockw.com KOC is responsible of major
upstream operations in Kuwait. KOC runs and maintains Ahmadi City.
KOC owns and manages Ahmadi Hospital (Southwell) Current Live
contracts exceed 600 # valued over 20 Billion US$ Current tenders
exceed 250 Nos. valued over 15 Billion US$ under different stages
of bidding KOC total staffing of 6,000 employees. Works and
Services are entirely outsourced. KOC relies on reputable
contractors and vendors to support its activities, objectives and
long term strategies Current Opportunities Slide 29 www.kockw.com
Selection of proven / reputed manufacturers Products meeting
specification, quality and delivery schedules. Approved Vendors
benefit from Direct / Indirect Procurement opportunities Vendors/
Manufacturers Slide 30 www.kockw.com Approved Categories No. of
Main Categories (125) No. of Sub Categories (112) Total No. of
Approved Manufacturers (1606) No. of Countries (48) No. of Approved
USA Manufacturers (237) Slide 31 www.kockw.com Minimum
Requirements: Prequalification limited to manufacturers (not
assembler/ system integrator) Minimum 5 years of proven experience.
Own design, manufacturing & testing capabilities Accreditations
such as: ISO/ ASME/ API/ HSE/ NB & Type Test Report from
Internationally recognized testing agencies like: KEMA / BSI etc.
Past experience with IOCs / ISPs for last 5 years. Audited
Financial Statements for 2 yrs in accordance with IFRS Minimum
Requirements for Vendors Slide 32 www.kockw.com KOC implements OPEN
ONGOING prequalification Quarterly monitoring of companies
performance. Annual verification of financial capabilities of
approved companies Poor performance of companies entail Q-listing.
Pre Qualification Types PQ for existing categories of Works/
Services PQ for Specific Projects (on case to case basis) PQ for
Companies Offering New Technologies PQ of Contractors, SPs &
Consultants Slide 33 www.kockw.com Major EPC Contracts (> US$
500 million) Large EPC Contracts (US$ 200-500 million) Medium EPC
Contracts (US$ 50-200 million) Small EPC Contracts (< US$ 50
million) Construction of Mega Tanks Offshore Support Services
Onshore Oil and Gas Pipeline Projects General & Specialized
Inspection Services Surface Well Testing Offshore Drilling Rig
Services Shallow, Medium and Deep Drilling Services Full
Maintenance Services of Production Facilities Categories for Intl.
Companies Slide 34 www.kockw.com Maintenance of Fire Fighting
Systems Slick Line Services Dredging Works Marine Operations
Services HSE Consultancy Services Tubular Inspection & Internal
Corrosion Services Mud (Products, Engineering & Logging)
Services Rock Properties & Fluid Analysis Services ESP,
Ultrasonic ILI & Repair of Sub-sea Pipelines Integrated
Security Systems Categories for Intl. Companies (contd.) Slide 35
www.kockw.com Establishment of KOC e-Tendering with support of
Microsoft Register and update profile online View KOC Tenders and
categories of works Download Tenders and PQ Documents Access to
commercial documents Security and Confidentiality The Company
encourages companies to get to know KOC and participate in its
upcoming Tenders KOC looks forward to international companies
future presence and sharing of business opportunities in Kuwait
e-Tendering Portal www.kockw.com Slide 36 www.kockw.com KOC carried
out series of improvements with respect to its manner of conducting
business. Enhancement of KOCs Lump Sum Turnkey (LSTK) Model
Contracts for Major Projects. KOC witnessed increased participation
of international EPC contractors in Companys tenders. The areas for
improvement were identified jointly with International Contractors/
Consultants. The Enhanced LSTK model contract introduced in 2006
The feedback obtained has been extremely positive. Benefits from
increased participation encouraged KOC to pursue wider improvements
in Terms & Conditions of Contracts. Enhancements to Contracts
Terms & Conditions Slide 37 www.kockw.com Summary of
Enhancements: Sharing of Bidding Fees FEED Verification Pre/ Post
Award of Contract Improvement to Bank Guarantees/ Bonding
requirement. Enhanced Contractors Cash Flow Non-incorporated Joint
Ventures / Consortia Limitation of Liability Clear process for
Variations Performance/ Schedule Incentives Currency &
Commodity Price Fluctuations Enhanced Claims Handling Alternative
Dispute Resolution General Improvements: Re-allocation of risks to
party best able to control that risk Risks allocated in line with
international norms More user-friendly structure, terminology and
language Better administration Enhancements to LSTK Contract Model
Slide 38 www.kockw.com Most producers are under pressure to
increase production. Many international Contractors are unwilling
to bid for projects on a lump-sum turn-key (LSTK) basis. KOC has
reacted to such market demands. Two (2) phases for the development
of the following Four (4) alternative EPC Model Contracts: Phase
(I):Re-measurable ModelCompleted Cost Plus Model Phase (II):Cost
Plus Convertible Model Cost Plus (FEED by Company) Early Production
Facilities Model Two Envelope Bidding System Alternative
Contracting Options Slide 39 www.kockw.com THANK YOU
