Ministry of oil

Main Accomplishments in Petrochemical

Industries during the Reign of Amir of Kuwait

Sheikh Sabah Al Ahmed Al Jaber Al Sabah

With the compliments of the Petroleum Media and Public Relations Department – Ministry of Oil

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Amir of Kuwait in the National Assembly

The Amir of Kuwait Sheikh Sabah Al Ahmed Al Jaber Al Sabah took over in 2006 AD after taking the constitutional oath during a special session of the National Assembly thus becoming the Amir of the State of Kuwait and the fifteenth ruler from the Al Sabah family.

Ever since he became ruler, the petroleum industry witnessed several developments, the most prominent of which be-ing his heading the State of Kuwait Delegation during the Third Summit of the Organization for Petroleum Exporting Countries (OPEC) which was held in the Saudi Capital (Riyadh). During the Summit, he delivered a speech in which he confirmed the necessity of establishing cooperation between producers and consumers for achieving the stability of pe-troleum markets and encouraging economic growth in the world. He announced that the State of Kuwait shall donate an amount of 150 million USD to support the program for funding scientific research related to energy, the environment and climate change.

The Amir’s donation of such an amount is not strange, especially that he is keen on giving care to the Kuwaiti petroleum

5Amir of Kuwait in the Welcoming Event of Heads of Delegations at the Energy Forum held in the State of Kuwait in March 2012 AD

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industry. This interest is clearly expressed through his constant support of the oil sector and his seeking to meet them con-stantly. He also sponsors many important events

Of oil companies such as sponsoring the Kuwait Oil Company celebration of its 75th anniversary. This company was es-tablished in 1934 AD under the name of the Kuwait Oil Company Ltd by the Anglo-Iranian Oil Company, now known as British Petroleum, and the Gulf Oil Company, which is now known as Chevron. Ever since its establishment, the company activities included exploration, land and sea surveys, drilling trial wells, developing production wells and drilling for crude oil and natural gas.

In 1938, commercial amounts of oil were discovered in Burgan Field. In June 1946 AD, the Amir of Kuwait late/ Sheikh Ahmed Al Jaber Al Sabah turned a silver wheel, thus announcing the first crude oil export of the State of Kuwait. After a short while, new fields were drilled and developed and export facilities were expanded. This led to the construction of the northern and southern piers, the artificial island, and a single floating dock.

Amir of Kuwait being informed by officials at the Kuwait Oil Company that a gas field was discovered

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Amir of Kuwait and Turkish President Abdullah Gul participating in the celebration of the Kuwait Oil Company’s 75th anniversary

In 1975 AD, the Kuwait Oil Company became owned by the Kuwaiti government by 100%. The year 2005 witnessed the discovery of excellent light crude oil in the Al Sabiriya Field. The discovery of crude oil API 52 in accordance with the specifications of the American Petroleum Institute representative a qualitative leap of the exploration capacities of the company. In 2006 gas was discovered in the deep Jurassic era reservoirs in Al Rahiya and Matraba and Um Naqh and other fields around Kuwait. These discoveries achieved the dreams of Kuwait of becoming self sufficient in the field of gas which allows it to produce energy.

In 2011 AD, the company succeeded in achieving its goal represented in decreasing gas combustion to around 1% as com-pared to the levels of gas combustion that registered 17% a few years prior, which represented a significant accomplish-ment for the Kuwait Oil Company.

The Kuwait National Petroleum Corporation also caught the interest of his highness the Amir. He sponsored their 50th anniversary celebration. The Kuwait National Petroleum Corporation was established in October 1960 as a joint project

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Group of Delegations participating in the Thirteenth Energy Forum during their visit to the Kuwait Oil Company camp

between the State and private sector. It works in all petroleum industries fields starting with drilling and exploration to marketing and selling petroleum derivatives in both, the local and international markets. When it was established, it was considered the first national petroleum company in the region. Due to the importance of oil derivatives and the need for a market for them, the Kuwait National Petroleum Corporation focused on the oil refining industry and the marketing of petroleum derivatives. In 1966, it built its own petroleum refinery in Al Shuaibah region. It was opened in 1968 AD. At the same time, the Kuwait Oil Company had the Abdullah Port refinery and Al Ahmedi Port refinery. It was called Al Sh-uaibah refinery and was constructed according to the newest technologies in the world in the field of refining at the time with a hydrogen unit.

In 1975 AD, the refinery was expanded to increase its capacity to refine 95 thousand barrels per day to 200 thousand bar-rels per day. During the same year, the company became completely owned by the Government after the Kuwaiti Govern-ment, in 1975 AD, took a decision to completely own its oil resources. The shareholders of the company from the private sector, who owned 40% of the company shares, were duly compensated.

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Amir of Kuwait participating in the Kuwait National Petroleum Company’s celebration for its fiftieth anniversary

Since 1975, the Kuwait National Petroleum Company was delegated with the responsibility to refine oil and liquefy gas and market products and petroleum derivatives in the local market. With this step, its circle of responsibilities increased to include the three refineries in the State of Kuwait, namely Al Ahmedi Port, Abdullah Port and Al Shuaibah Port as well as the gas liquefaction plant in the Al Ahmedi Port. The company, during a short time, started preparing the required studies for updating the Al Ahmedi Port and Abdullah Port refineries. This update achieved a significant increase in the refining power of the ports.

On the level of local marketing, the Kuwait National Petroleum Company markets petroleum derivatives through the fuel stations which reached 119 stations. After establishing its presence in the refinery field and in cooperation with the Kuwait Petroleum Corporation, the company established a stage program for privatizing all fuel stations by establishing a number of shareholding companies to which shall be transferred the property of the stations. 80 stations were privatized until 2013. The company is currently working on evaluating the experience for taking executive steps for privatizing the remainder of the stations which the Kuwait National Petroleum Company continued to manage, namely 39 stations.

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The petrochemical industry was not absent from the attention of his highness Sheikh Sabah Al Ahmed Al Jaber Al Sabah. He sponsored its golden jubilee event. The company was established in 1963 AD which was an important step in aiding in the Kuwaiti economic diversity by increasing the hydrocarbon resources value. In 1966 AD, the company finished building the fertilizer plant in the Industrial Shuaibah region to begin a new stage in the development of the Kuwait oil industry represented in the company owning and having the capacity to produce ammonia and urea and thus emphasize its presence in the world fertilizer manufacturing arena. By following up the international developments in petrochemical industries, the Petrochemical Industries Company signed in 1993 a memorandum of understanding to establish the olefins complex which is considered one of the largest petrochemical projects in the world with a productive power estimated at 650,000 tons of ethylene and polyethylene derivatives and ethyl glycol annually. During the past years, the Petrochemical Industries Company diversified its portfolio by investing in the local and international scenes which allowed it to become an important competitor in the field of petrochemicals on all levels: regional, Arab, and international.

The sponsoring of his highness of such celebrations came as a continuation of the journey of the late Sheikh Jaber Al

His highness Amir of Kuwait participating in the Petrochemical Industries Company during its fiftieth anniversary

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the Petrochemical Industries Company has acquired a prominent place on the international level in manufacturing fertilizers

Ahmed Al Jaber Al Sabah who gave great attention to the oil industry in Kuwait. He placed the first cornerstone for the petrochemical industries in the State of Kuwait in 1962 AD as well as opened the first Olefins project in 1997 AD. This project witnessed a constructive cooperation between the government and private sector and the international partner which was translated in the launch of the Equate Company.

In continuation of this progress in the oil sector and based on the continuous support of his highness Sheikh Sabah Al Ahmed Al Jaber Al Sabah of the project which contributes in turning the wheel of the national economy, his highness sponsored the official opening of the second olefins, styrene and aromatics plants.

And thus, his highness Sheikh Sabah Al Ahmed Al Jaber Al Sabah, Amir of Kuwait, is leading on the Kuwaiti develop-ment with God’s blessing based on the words of the Holy Quran (And say Do, for Allah will see your deeds and so will His Messengers and the believers).

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the State of Kuwait hosted the fourth round table meeting of the Ministers of Energy in April 2012

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Ministry of Oil participating in national celebrations

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children of Kuwait celebrating the national holidays

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