Issue No. 33, July - September 2005

Sheikh Talal Al Khalid Inaugurates New Science & Knowledge Gateway

KPI at Par with EuropeanCompetitors

Active Plans to Combat Marine & Land Oil Spill

KPC’s Green Thump Project New Life Style Courses at Petroleum Training Centre

Issue No. 33, July - September 2005

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Our MissionKuwait Petroleum Corporation (KPC) is a corporation of economic character, run on a commercial basis and fully owned by the State. It is one of the world s̓ major oil & gas companies and its activities are focused on petroleum exploration and production refining, marketing, petrochemicals, and transport.KPC s̓ mission is to manage and operate these integrated activities worldwide in the most efficient and professional manner, in addition to growing shareholder value whilst ensuring the optimum exploitation of Kuwait hydrocarbon resources.KPC has an important role in contributing to the support and development of the Kuwaiti economy, developing national manpower, maintaining superior commercial and technical expertise and proactively managing the environmental, health and safety aspects related to KPC s̓ businesses.

Sheikh Talal Al Khalid Al Sabah, Managing Direc-tor Petroleum Services, inaugurates new oil & gas discovery exhibits at the Scientific Centre, thereby ushering in new science and knowledge horizons.

8In this Issue

Kuwait Petroleum International Company seeks, through its new strategy, to boost its financial rev-enues in order to be at par with its European com-petitors and gain ground in the emerging markets of India and China.

16The Petroleum Training Centre in-troduces new life style courses that help employees overcome various ail-ments.

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Editor in ChiefTalal Al Khalid Al Sabah

Managing DirectorPetroleum Services

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3Editorial Team

Media Relations Department

Artwork & DesignKhaled M. Mostafa

ALRIYADHI General Printing Est.

The KPC World Editorial Team expresses its thanks and appreciation to all who contributed photographs, editorial and information material to produce this issue of KPC World.

P.O.Box: 26565 Safat 13126 KuwaitTel.: (965) 2400960 - Fax: (965) 2407872Website: www.kpc.com.kwE-mail: media@kpc.com.kw

2820KNPC Launches its New Corporate Identity.

A new contingency plan set up by KPC to offset the dan-gers of marine oil spills.

24 32Haithem Al Ghais, KPC China Rep-resentative Office Manager asserts that the Office is able to rise up to the challenges.

KPC’s Green Office Project.

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The Oil Sector : TowardsProgress and Achievement

All over its areas of activity, the oil sector sustains a strong commitment to resume its diligent quest of construction and development towards maximizing achievement and accomplishment. This commitment is unanimously held by all staff members of Kuwait Petroleum Corporation (KPC) and its subsidiaries. That is why the successful achievements are evidently on the right track, and the confident steps made towardsprogress and development in all activities imposingly incarnates the staffʼs ardent devotion and unshakable belief in KPCʼs goals. Over the past few months, the Kuwaiti oil sector witnessed a remarkable development evidenced by con-cluding many contracts for executing a number of mega projects including for instance the Calciner Coke Contract. The value of that contract, signed by Kuwait Oil Company (KOC), amounts to $ 1.22 billions, to update 10 crude oil gathering centres and a gas booster station. In addition, another prominent example to cite is the contract signed by Kuwait National Petroleum Company (KNPC) with Hyundai Company, the value of which amounts to KD 117 millions, to upgrade the liquefied gas plant located at Al Ahmadi area.The qualitative leap witnessed by the Kuwaiti oil sector is further evidenced by the decision made by the Supreme Petroleum Council to establish the Petroleum Services Company with a capital of around KD 100 million. This purpose of the forthcoming company includes responsibility for the security and safety of Al Ahmadi area, together with responsibility over Al Ahmadi Hospital, as well as providing the oil sector with consulting and human resource services as well as other services beneficial to Company, e.g. acquiring,purchasing, lending, constructing, managing and operating the necessary real estates and assets. Further-more, the Supreme Council declared the establishment of the Oil Development Company chaired by the Managing Director of Kuwait Project, Mr. Ahmad Al Arbeed, with a capital of approximately KD 300 mil-lions. The Company was established with the vision of supervising the foreign companies working in the development of oil fields, and will operate in the same line of business assumed by KOC, i.e. oil rigging,manufacture, production, development and selling oil and oil derivatives, together with the acquiring all projects ̓intellectual property, managing research and development programs, and collecting the oil and oil products funds due to the State by virtue of contracts on behalf of the Financial Affairs Department. In terms of upgrading the oil sector personnel, the Petroleum Training Center is in pursuit of improving the employees ̓skills by providing them with well planned training. The Centre began to implement the new training plan starting by two specialized sessions related to the psychological health and manners of handling work pressures. This issue involved an interview with the Managing Director Training Affairs & Career Development, Sheikha Shatha Al Sabah, to shed light on such innovative trends. This trend is streamlined by KNPCʼs launch of a new logo in line with its strategic orientations and variety of interests. To shed light on this matter, KPC World had a special interview with Mr. Muhammad Al Hajiri, Manager of Public Relations.At the global level, KPC has inaugurated its representative office in China, representing a step ahead to-wards enhancing KPCʼs business in the promising Chinese market.

Talal Al Khalid Al SabahManaging Director Petroleum Services

Editor-in-Chief

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Sheikh Ahmad Al-Fahad Al-Ahmad Al-Sabah, President of the Organization of Petroleum Exporting Countries (OPEC) and Minister of Energy affirmedthat OPEC is keen on keeping oil price acceptable to help fur-ther boost the world economic growth and remove psychologi-cal concerns in world market.

He said that a decision to hike the cartel's oil production by 500,000 barrels per day (bpd) as of July 1 and put into effect a similar increase whenever required reflects the belief thatconditions in the market have not changed since a conference in the Iranian city of Asfahan when the decision was taken. With this rise, OPEC official productionceiling goes up from 27.5 million to 28 million bpd.

OPEC decided to lift its oil production quotas in a move reflecting the organi-zation's unease with soaring worldwide energy demand. Having reviewed the oil market situation and its immedi-ate prospects, OPEC observed that the market continues to be well supplied, as a result of OPECʼs decision in March 2005 to increase its production ceiling to 27.5 mb/d, and that, consequently, commercial crude and product stocks have continued to build to comfortable levels, around average in terms of days of forward cover.

However, the Conference noted The Sheikh Ahmad Al Fahad attributed the rise of oil price to shortage of world

OPEC Raises Production to Calm Surging Worldwide Demand

Sheikh Ahmad Al-Fahad Al-Sabah, President of (OPEC)

oil refining capacity. He noted that thatworld crude oil prices remain high and volatile as a result of concern about a lack of effective global oil refiningcapacity, in particular possible shortages of middle distillates in key consuming regions. Refineries, whilst already run-ning at high utilization rates, are facing difficulties in coping with strong distil-late demand-growth.

He added that situation is being further exacerbated by geopolitical develop-ments and increased speculation in the oil futures markets. He said that politi-cal developments last year also played a role in the hike of oil price whereas refinery is considered a major problemthis year especially that the United States declared to reduce its derivatives storage, which resulted in the increase of the US oil by two dollars.

He also expressed hope to visit Beijing soon to boost cooperation between OPEC and China.

OPEC called on all parties concerned to join efforts to maintain market stability, with reasonable prices consistent with robust economic growth, in particular in the emerging economies of the develop-ing world.

OPEC emphasized its particular concern about the shortage of effective refiningcapacity required to meet future strong demand growth, as a consequence of under-investment in this sector, espe-cially in conversion capacity, as well as excessive regulation. OPEC, therefore, repeated its call on industry and con-sumer governments to urgently address this challenge, which, if left unresolved, will exacerbate oil price volatility.

source

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KPC Launch Calciner Coke Project Kuwait Petroleum Corporation (KPC) and its subsidiary Kuwait National Petro-leum Company (KNPC) signed a 20-year contract with Petroleum Coke Industries Company (PCIC) in consortium with a group of leading Kuwaiti companies, thereby signaling the start of the highly ambitious “Calciner Coke” Plant. The project is considered the oil sectorʼs first major alliance with the private sector.

Mr. Hani Abdulaziz Hussein, KPCʼs Chief Executive Officer signed the contract on behalf of KPC while Mr. Wael Jassem Al Sagar - Chairman of the Board of Directors of the Petroleum Coke Industries Company, signed on behalf of his company.

The contract was also signed by Mr. Jamal Al Nouri, Managing Director In-ternational Marketing at KPC, and by the Managing Director for Refining and Local Marketing and Chairman of the Board of Directors of KNPC , Mr. Sami Al Rushaid.

The construction rights for the Kuwait calciner plant have been awarded to PCIC through a bid process adminis-tered by KPC. The concession period is for 22 years. KPC will provide the entire raw material required for the calciner at an indexed price during the concession period. Upon completion, the Kuwait calciner plant will have a capacity of 350,000 MTPA.

The project is developed and imple-mented by Al-Mal and A H Al-Sagar and also the company's foreign col-laborator, Oxbow Carbon & Minerals, LLC, USA. This project has long been sought after by the calcining industry for expansion due to its access to ex-ceptional quality raw material (Green Petroleum Coke) and also with the fast expanding aluminum production in the region.

Mr. Hani Abdulaziz Hussein said that signing the contract is the outcome of a series of successful negotiations be-tween both parties and as a confirmation of KPCʼs belief in the importance of in-volving the private sector and privatiz-ing successful industries.

In implementation of its new strategic directions, the Corporation started to privatize vital projects such as the chlo-rine salt plant, fuel stations and the oil blending plant that is completely sold to the private sector.

Mr. Hussein said that the future would witness an expansion of the private sec-torʼs role in the oil industry. The private sector, he added would contribute to the overall development of the sector and ensure an added value for the national economy.

First of its Kind The calciner coke project is the first of

its kind in terms of its nature and size, and is carried out through huge contri-butions of the oil sector, thereby repre-senting a model to follow in all privati-zations.

The project will cost around KD 150 million and will cover an area of 265,000 square meters that was privatized by the Public Authority of Industry in Al Sh-uaiba industrial area.

Kuwait Industrial Bank has contributed 60% of the investments of the project whereas the Kuwaiti and foreign private sectors have contributed the remaining 40%.

The calciner coke project ranks sec-ond among other plants in the region in terms of its production capacity, follow-ing the number one Alba plant in Bah-rain. However, it is considered as the first plant in the world in terms of the raw materials it possesses that will be provided by KNPC for the coming 20 years at prices defined by the contract. The capacity of the Kuwaiti plant is es-timated at 350,000 tons of calciner coal and the capacity of the Bahraini plant is of 450,000 tons.

One of its other features is that it will produce steam along with calciner coal, thereby helping to produce electrical power with a capacity of around 52 Megawatts.

Events & Activities

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Kuwait National Petroleum Company (KNPC) signed KD 117 million con-tract with South Korean Hyundai En-gineering to upgrade Liquefied NaturalGas (LNG) plant in Mina Al Ahmadi Refinery. This will modernise the plantat Al-Ahmadi refinery by enhancing theethane recovery rate.

Mr. Sami Al Rushaid, Managing Direc-tor for Refining and Local Marketingand Chairman of the Board of Directors of KNPC, said that the execution of the project is expected to be finalized within30 months.

Al Rushaid added that the project would boost output from the current 55% per-cent to 96%. The extracted quantities will be used as a feedstock for the petro-chemical industry.

With regards to the current unused percentage of extracted gas Al Rushaid said that this quantity will be used pres-ently as fuel but it will be economically more feasible if it is turned into a feed-stock. He also mentioned that Hyundai Company would be responsible for the engineering works, the materials, the construction and the installation works.

It is noteworthy that Hyundai Company is actively working on another major project, which is building a pier for KNPC worth KD 100 million.

The ethane will be sold to Petrochemi-cals Industries Company to be used as feedstock for the production of petro-chemicals.

KNPC Sign KD 117 Million Project with Hyundai

Kuwait Oil Company (KOC) signed a KD 360 million with the South Korean Company SK Engineering and Con-struction Company to upgrade and re-locate underground process piping at 10 gathering centers and a booster station.

The contract has been described as the biggest in KOCʼs history. Mr. Farouq Al Zanki, Managing Director for Ex-ploration and Production- Chairman and Managing Director, Kuwait Oil Company, said that this contract will set KOC for the next twenty-years, provid-ing a completely new infrastructure and adding significantly to KOC productioncapabilities. The continued efforts and team cooperation will lead to a safer work environment for KOC employees and give them the confidence to reach

the target for increased production ca-pacity. He also called for the timely completion of the contract.

The project includes relocation of under-ground oil & gas piping inside gathering centers (1,2,9,10,11,17,19,20,22) and booster station 170 and installation of HP wet separator/LP wet separator, de-salters and associated facilities. As well as installing new water/oil separators and condensate recovery units.

The aims of the monumental project are: increasing KOC production ca-pacity, improving the company health, safety and environment practices, enhancing the production associated water-handling capabilities, decreasing gas-flaring.

The Biggest in its History

KOC & Korean SK Sign KD 360 Million Deal

Sami Al RushaidManaging Director for Refin-ing and Local Marketing and

Chairman of the Board of Directors of KNPC

Farouq Al Zanki Managing Director for

Exploration and Production Chairman and Managing

Director, Kuwait Oil Company

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Talal Khalid InauguratesNew Gateway To

Science & Knowledge Sheikh Talal Al-Khalid Al-Sabah, Managing Director Petroleum Services, on behalf of the Minister of Energy Chairman KPC Board of Directors, Sheikh Ahmad Al-Fahad Al Sabah, inaugurated the new Oil and Gas exhibits at the Exploration Hall at the Scientific Centre, thereby opening a new gateway for knowledge and science.

The exhibits were true to life depiction of the oil industry and present visitors with a general yet comprehensive overview of the oil industry. The new Discovery Hall includes interactive displays that present a historical overview of oil formation, and a brief outline of the various aspects of the oil industry such as: exploration, drilling, storage, refining, distributing, export and petrochemical industry. Additionally, the exhibits underline the importance of security and safety in this vital industry.

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As mentioned, the new Discovery Hall allows the visitor to gain an insight into the nature of the oil industry in an interesting and fun manner. Visitors can learn how to drill an oil well and how to load oil on tankers through pipelines and valves. The exhibits also include illustrations of certain industrial processes such as converting oil into tires and plastic materials.

In the following interview, Sheikh Talal Al-Khalid Al-Sabah sheds light on this pioneering project.

Can you outline the background of

KPCʼs sponsorship of the new oil and gas exhibits at the Scientific Centre?

Guided by its educational and social mission, KPC earnestly supports all scientific and cultural projects that seek to cater for the needs of those who pursue knowledge and desire to increase their self-education. In this context, the new displays provide valuable information about oil, which is the most important driver of the Kuwaiti economy.

KPC makes a deliberate effort to increase awareness of the importance of oil and a general understanding of the structure of the Kuwaiti oil industry, thereby highlighting the prominent role

played by the oil sector in our national economy.

The inauguration of the project was the fruition of an 18-month cooperation between KPC and the Scientific Centre. The idea was that the exhibition hall would serve as a pioneering and unique scientific and educational project, and is another achievement standing to the credit of Kuwait Petroleum Corporation.

To this end, KPC made available a specialized team with considerable experience in oil sector affairs to ensure an effective display of the oil industry processes. Special efforts were made to ensure that the displays are understood

Sheikh Talal Al-Khalid Al-Sabah touring the exhibit.

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by visitors of all age groups, starting with kindergarten children.

Tremendous care was taken to ensure that the displays would combine accurate scientific information, factual presentation and models that reflect the way things are in the Kuwaiti oil industry. Needless to say, KPCʼs sponsorship of the new Discovery Hall has built a strong bridge that promotes contacts between the Corporation and society, and furthers oil education among the young, thereby satisfying their natural curiosity and quenching their thirst for knowledge.

KPCʼs contribution to the education process started with the publishing of the first childrenʼs story “The Story of Naftan”, followed by “Yakhdoor and the Environment”, within the framework of our plan to increase our releases of enlightening publications for the benefit of children. These publications are designed to appeal to the childʼs brain and imagination, using simple classical Arabic and relying on

interesting examples that further the childʼs curiosity.

What exhibits are displayed at the new exploration hall?

The new exhibition hall contains interactive displays that induce visitor attention, starting with a historical overview of oil formation, then a brief outline of the various aspects of the oil industry: exploration, drilling, storage, refining, distributing, export and petro chemical industry, in addition to the concept of security and safety in this vital industry.

The exhibits are displayed over an

area of 56 square meters and include 33 items that reflect the various processes on the oil and gas industry. The development of the exploration hall was the result of extensive field studies and numerous meetings held by The Scientific Centre with education specialists, administrators and teachers in various stages of education, all of which indicated the importance of providing such exhibit in Kuwait, given the fact that the oil industry forms the prime economic resource, and in view of the difficulty of visiting the physical locations of these processes because of security and safety considerations.

The exhibits were true to life depiction of the oil industry and present visitors with a general overview of the oil industry.

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The Scientific Centre

The Scientific Center is a gift to the nation, the largest Aquarium built in the Middle East, by Kuwait Foundation for the Advancement of Sciences. The Scientific Center serves as a Center of excellence for environmental education in the Arabian Gulf region. Visitors can focus on the natural habitats of the sea, with underground passages rich in marine life, natural habitats of the coastal edges and the desert of the Arabian Peninsula.

Discovery Place

Discovery Place is alive! Energy is all around us- from the simple machines we use every day to the petroleum products used in cars and airplanes. Young and old alike can enjoy interactive exhibits including the creation of electric circuits and the discovery of the world of oil like a petroleum engineer. Discovery Place enables visitors to experience the joy of learning the secrets of petroleum and petrochemicals through these hands-on exhibits.

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Steady Steps TowardDevelopment, Success

Kuwait Petroleum International (KPI) is stead-ily standing on solid grounds by occupying a prominent status within the international ener-gy markets characterized by fierce competition,especially in light of the rapid market changes and volatility worldwide. The unique status and image held by KPI in the global market is enhanced by its outstanding ability on continuous development, which quali-fied it to be the international arm of Kuwait Pe-troleum Corporation (KPC).

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As such, it will launch for extending KPC's influence in major International oil markets including but not limited to the European and Asian markets.

Accordingly, and given the tough compe-tition among major players in the energy market, KPI holds the view that survival is for the fittest; a quality that makes it possi-ble to stand the winds of change and rivalry through keeping abreast with the latest de-velopments with the utmost flexibility.

These facts were emphasized by Mr. Abdul-latif Al-Houti, KPIʼs President. “Our fore-most objective is to achieve better returns on our investments through a determined pursuit to shift our previous focus from merely obtaining a market share to realiz-ing profits comparable to those realized by companies operating in the same regional markets", he says. “To arrive at this high end”, he continues, “it was mandatory to conduct a periodical review of our overall activity in order to ensure that the intended activities are being carried out effectively and that such activities arrive at their tar-geted objectives. We are confident in our ability to achieve our objectives through re-liance on our outstanding financial systems and resources, backed by the unparalleled competence of our human resources."

Al-Houti added that he expects a wider expansion of KPIʼs operations after its re-structuring by means of operating outside the European arid market, steering towards such new promising marketplaces as the Indian and Chinese markets.

KEY DRIVER TO SUCCESS

In its plan to achieve further growth and success, KPI is guided by KPC's long term strategic directions known as the "2020 Strategy.” Noteworthy, finalizing the strate-gic directions constitutes one of Al-Houti's most significant achievements during his tenure as Executive Assistant Managing Di-rector Strategic Planning at the Corporation before taking over the reins of KPI.

For further elaboration to the above-men-tioned Strategy, Al-Houti explained "In the last quarter of the year 2002, KPC embarked upon a comprehensive review of its strategy, including those directions to be maintained by KPI. In this respect, several

scenarios related to KPI were set and pre-sented to the Supreme Petroleum Council who approved them by the end of 2004.”

KPIʼs President went on to emphasize that the Companyʼs long term strategy requires the realization of returns comparable to those realized by competitors within a five-year time frame “due to the fact that the present modest rate of return ranging from 3 to 4% does not reflect the size of our in-vestment in Europe. Therefore, we need to realize returns paralleling the size of our in-vestment in light of the fact that the returns realized by similar players range from 6 to 10 %", he added.

Al-Houti further clarified that the new strat-egy was built upon two elements, the most important of which involves what is com-monly known as the “Self Help" approach according to which the company shall dis-pense with external assistance. To exem-plify, an in-house study was conducted with a view to restructure the company-owned fuel station networks, with two alternatives: either the overall station networks existing in every individual country will be consid-ered within one framework, or each country will be treated as an independent unit. "KPI has approximately 4000 stations in Europe, the majority of which, "3500", are located in Italy alone, while around 1500 stations are located in the Netherlands, Belgium, Luxemburg and France" he added.

These fuel stations are run in Europe based on four management systems categorized as follows:- The COCO System by virtue of which the

company owns and manages the stations- The CODO System, whereby the Com-

pany owns the assets without managing them. Noteworthy, this system is also the prevalent trend in the UAE.

- The DODO System, whereby the Com-pany does not own the assets, whereas the owner is committed to supply the Company with contracts

- The Automat System, which involves self-service, where the fuel is paid for by a credit card.

Meanwhile, Al-Houti lauded the decision taken by the KPC's Board of Directors in September 2004 whereby the work of the International Business Development sector was transferred under the umbrella of KPI.

"This decision allowed the company to extend its global area of activity, hence in-crease its potentials to compete in new and developing markets by seizing investment opportunities in the promising markets of East Asia, India and China. Following the development of the 2020 Strategy, it was logical to merge the operations of the International Business Development Sec-tor with KPI, together with enhancing and developing KPI's existing resources and know-how, given the homogeneous nature of its functions.

OPERATIONAL RE-STRUCTURE

Al-Houti emphasized that KPI faces the challenge of restructuring its operations. Therefore, it was decided earlier this year to consider the company's organizational structure, hence the operational re-struc-

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Abdullatif Al-HoutiKPIʼs President

As such, it will launch for extending KPC's influence in major International oil markets including but not limited to the European

scenarios related to KPI were set and pre-sented to the Supreme Petroleum Council who approved them by the end of 2004.”

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ture. The previous organizational hierarchy included a president and a vice president in charge of operations. Under the new structure, the Company Board is chaired by a president assisted by three vice-presi-dents in charge of Operations, Planning & Business Development, and Financial and Administrative Affairs respectively. The new structure will give momentum to the Company's operation especially with regard to strategic thinking and planning to stand the challenges faced by our operations worldwide.

With regards to the companyʼs intention to dispose of certain assets in Europe, follow-ing its decision to sell part of its assets in Great Britain, Al-Houti clarified that it is the company's policy to weigh the status of achievement for its activities. “There-fore, KPI is keen on developing any facility achieving the planned objectives. Mean-while, whenever an activity proves to be unprofitable or that it does not achieve its

targeted returns, the company starts to re-consider its status. On these grounds, having found that our presence in Britain only al-lows us a market share of 3 to 4%, which put a question mark on the feasibility of operat-ing such assets at all. When we studied the situation, two alternatives were on offer: the first involved the fact that to realize accept-able returns we will have to multiply the sta-tions number and size by 3 or 4 times. The second was to exit the fuel station market in Britain altogether. Based on this study, and following a performance appraisal, it was found that operational expansion will by no means be financially feasible, hence the decision to withdraw from the British market in terms of both retail and wholesale operations. Noteworthy, KPI owns no fuel stations in Britain at present, but operates on a lease basis (according to the DODO System indicated above). However, we con-cluded agreements with the station owners to allow operation under KPI's Logo until the contracts expiry” he explained.

He added that KPI operates in 24 major international airports, six to seven of which are in Britain, in addition to other services including the diesel lubricating oils with full coverage all over Britain, as the Com-pany owns a large diesel and lubricant oils plant there.

In relation to locations in central Europe, both important and large, Al-Houti em-phasized the fact that studies are still in progress to find out the optimum ways to enhance KPI's presence, improve opera-tional performance, and expand its business with a view to maximize returns, particu-larly in Italy, Belgium, the Netherlands and Luxemburg.

With regard to the situation in other parts of the world such as Thailand, Al-Houti commented that a study, focusing on KPI's role, was also conducted on the Thai mar-ket characterized with fierce competition, where the situation was found to be similar to that of Britain. To cope with such com-petition, the Company will have to inject enormous capital funds to achieve any re-warding financial returns. Yet the potentials of such rewarding returns were found to be low, and it is unlikely that the investment will achieve the targeted objectives. Based on these findings, the decision to withdraw was taken and the Company's retail and wholesale assets in Thailand were sold, ex-cept for those operating within airports.

BUSINESS EXPANSION IN ASIA

In relation to his recent visit to India, and in response to a question concerning whether the Company is planning to expand its oper-ations in the Indian sub-continent, Al-Houti stated. "India represents an important mar-ket for Kuwait, as a number of private oil companies have recently emerged there. KPI is working towards establishing partnership relations with governmental and private en-tities or opening dialogue with them with a view to study investment opportunities that would eventually lead to signing long-term contracts to supply such entities with crude oil. KPI also plans to establish a refinery, as well as developing projects to build crude oil storage depots. Al-Houti also pointed out that, during the visit paid last year by His Highness Prime Minister, Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, to East Asian countries, a protocol of cooperation regard-ing oil was signed with the Chinese govern-ment by virtue of which companies of both sides will be able to discuss prospects of co-operation and exchange the know-how."

"The trend towards expanding the Compa-ny's operations in India and China started earlier in 1994-1995, as the Company iden-tified those two countries as major growth areas, representing a prospect intensified by the fact that there have been huge increase rates in crude oil consumption in these mar-kets, particularly since 2002. China has now surpassed Japan as an oil consumer, with an annual consumption growth rate of 6 -7 %" Al-Houti continued.

“Frankly speaking, one must admit that over the past years, KPC achieved no tan-gible results on the Asian markets, which can be attributed to several factors chief among which is that these markets were strictly state-controlled. However, since

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2002, these markets started to open up, and negotiations were started with companies in both countries. We are now emphasizing the Company's ability to supply them with crude oil under long-term contracts. There are many promising opportunities and good prospects, which still require considerable efforts to be exerted involving negotia-tions, discussions, and meetings in order to alleviate all sorts of pressure and arrive at transparency regarding relevant issues." He added

Al-Houti pointed out that having studied the situation in the Asian market, KPC felt the need for expansion at the Chinese arena, par-ticularly the airport areas that are currently developing at a remarkable rate, especially with the approaching of Olympic Games ac-tions scheduled to be held in China by 2008. "Chinese airports", he said, "are expected to witness considerable congestion throughout the period to come. We need to establish our presence in one of the Chinese airport just a launching base towards deployment in the other airports in this high potential market. KPC opened a representative office in China this year, and KPI already supplies fuel to Hong Kong Airport."

Other prospects include the South Korean market, where Al-Houti pointed out that KPI is seeking to enter into investments with Korean companies in order to enhance the Companyʼs position and create chances in that country.

Based on the above, KPI is currently under-taking the overall responsibility at the glo-bal level for developing KPC's global activ-ity, improving performance, and increasing production, which will ultimately enhance the Company's competitive edge within the world energy market, hence higher returns on its investments.

KPIAC : World’s Best Regional Jet Fuel Marketer

To be voted the best by the customers themselves is perhaps the greatest recognition of a companyʼs success and undoubtedly the finest tribute to the people behind the brand. Voted the Worldʼs Best Regional Jet Fuel Marketer in one of the industryʼs most prestigious surveys and also winning the Best Overall award at the same time, Q8 Aviation is celebrating and deservedly so.

The Armbrust Aviation Group (AAG) survey is undisputedly one of the industryʼs most respected performance benchmarks. The survey asks airlines from around the world to evaluate jet fuel marketers and airport operators on a range of criteria. With more than 70 airlines taking part in the 9th annual AAG survey, Q8 Aviation was chosen as the World's Best Regional Jet Fuel Marketer. Not only that, but air-lines also voted Q8 Aviation ʻBest Overall ̓and when asked which companies they would like to do more business with in 2005, Q8 Aviation was again the first choice amongst the regional airlines!

Ross Baker, managing director Q8 Aviation, is understandably delighted with the award. “It provides us with the best possible feedback regarding the strategies we have been pursuing, the wholehearted commitment of our team within Q8 Aviation, the short lines of communication and our key focus on delivering the best possible solutions for our customers,” he commented.

Survey respondents placed Q8 far ahead of other regional jet fuel marketers with a total score of 286 points. Across the Africa, Middle East and European regions, Q8 led the field in seven of 10 service categories including Most Innovative, Best Staff, Values Relationships, Best Informed, Best Organisational Structure and Most Improved!

The surveyʼs results clearly prove that Q8 Aviation is quickly gaining ground in positioning itself as a leading jet fuel marketer. To be voted the ʻMost Improved ̓regional supplier for example, reflects very positively on Q8 Aviationʼs focus on constantly improving its services.

ʻWe work incredibly hard all the time at improving the way we do business. I believe that Q8 Aviation is in great shape and very well placed for expansion. The fact that so many airlines hope to give us more business this year is fantastic news, ̓com-mented Nick Nigel, Q8 Aviation global sales manager.

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New Life Style Courses at Petroleum Training Centre

“Back to Nature” phenomenon has swept the world. In every part of the world, people are steering away from traditional medicine and veering towards alternative therapy, discovering in the process astonishing physical and physiological benefits of such approach.

Following the path sought by major oil companies keen on providing the training tools that guarantee a sound work environment, KPCʼs Petroleum Training Centre has introduced a series of new training programs focusing on the topics related to methods of self-treatment and alternative medicine.

The abovementioned training course topics introduce to participants the principles of a revolutionary yet basic technique called “Transformational Breathing” and its healing power.

Through a gaining understanding of Transformational Breathing approach, participants will be able to reduce physical pain by regulating their breathing. Few people know that Transformational Breathing is a consistent art and science that can be taught to anyone interested in self-treatment through appropriate training. Surprisingly, experts state that most people spend their lives unaware of the principles of good breathing deemed as the most vital source of energy to the human body.

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Good Breathing Surveys covering thousands of people and groups have shown that 80% of the surveys ̓ sample participants suffer from restrictive breathing problems and that the amount of air they breathe does not exceed an average of 20 to 30% of the real capacity of their lungs, which in turn results in depriving human cells of the proper amount of oxygen ultimately causing strain and fatigue. That is why, being unaware of good breathing principles and techniques, people lose the most important source of energy, thus deprive themselves of enjoying a healthy life.

Efficient breathing has become a necessity inthis modern and complicated era especially as time seems to have a strong hold on our lives. Indeed, most of us are always in a hurry. It is also true that the air we breathe is not completely pure in the city life characterized with roads and heavy traffic.Our hectic lifestyle is also considered as the main factor behind chronic psychological pressure and fatigue.

Sheikha Shatha Nasser Al Sabah, Managing Director Training Affairs & Career Development, asserts that this new training curriculum and methodology launched by the Petroleum Training Centre is consistent with the overall strategy of the Training Sector with a view to provide the training programs and necessary tools to strengthen the personnelʼs endurance amid work pressures along with promoting their work performance.

These new programs teach participants the methods of transformational or deep breathing and the methods of inhaling full air into the lungs. Furthermore, participants get acquainted with their own restrictive breathing patterns, and therefore, they will be able to improve such breathing patterns through this training technique.

Early in 2005, the Petroleum Training Centre introduced three training sessions into the program of psychological health or alternative medicine which received very positive feedback from the trainees. Thus, the Centre Management decided to add these sessions to the 2005/2006 training plan.

Regarding this new training curriculum, KPC World had the following brief interview with the Managing Director for Training Affairs & Career Development.

What are the goals behind the psychological health training programs?

Caring for the psychological health of human resources is one of the modern

trends prevailing in global organizations and corporations who have started setting up special programs, plans and legislations related to the psychological health. Therefore, these programs were organized in the Petroleum Training Centre to introduce the personnel of the oil sector to the principles of homeopathy, known today as the “alternative medicine” and raise their awareness regarding diseases and the methods of disease prevention by exploiting the sources of energy inherent in the human body.

These programs also include information about the first aid concept and the wayof dealing with work injuries, while introducing participants to the sound natural breathing mechanism and the way it is used to reduce psychological pressure and strain. This is supported by awareness of the fundamentals of homeopathy or alternative medicine, together with exploring the zones emotions and reactions, e.g. anger, in the human body, in addition to stimulating centres of energy. This is performed through a series of simple exercises useful for all trainees, particularly those who are vulnerable to psychological pressure and those who cannot control their reactions. Through these new training programs, we can improve psychological health to reach satisfactory and stable results. In order to execute these programs, the Centre has cooperated with Resonance Company, and the courses are delivered by Dr. Hana ̓Shams.

How did the trained staff respond to these new training programs, and

how did such training reflect on theirefficiency and success?

So far, five training sessions related to thepsychological health programs were held. The turnover of employees in general was high as seen below:

1) The training program entitled “Homeopathy for Emergency Conditions and First Aid (Arabic)” held from 16 to 17 January 2005, was attended by 13 participants and the rate of audience reached 65%.

2) The training program entitled “Know Yourself and Breath your Stress Out – Females” held from 14 to 16 March 2005, was attended by 12 participants and the rate of audience was 80%.

Sheikha Shatha Nasser Al SabahManaging Director Training Affairs &

Career Development

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How did you discover Homeopathy and alternative medicine?

I was very lucky to join a group of people here in Cairo (foreigners and Egyptians) who had an agreement with a British university in London to send us a homeopath specialist every month to teach us for a week and to see cases. This new science captured my interest and after a long journey of studying and observing clinical cases, I got my 5-year certificate in homeopathy from London International College of Ho-meopathy-London UK. Homeopaths generally do not need a medical back-ground. However it is very helpful and many doctors allover the worlds are ho-meopaths as well.

What is Homeopathy and its His-tory?

Homeopathy is a complete system of medicine founded by Samuel Hahn-nemann (1755-1843). Hannemann was a German Physician who gave up on practicing medicine as they were using

Alchemical Breathing:

3) The training program entitled “Know Yourself and Breath Your Stress Out – Females (Arabic)” held from 28 to 30 March 2005, was attended by 18 participants and the rate of audience reached 60%.

4) The training program entitled “Transformational Breathing – Males (Arabic)” held from 10 to 12 April 2005, was attended by 21 participants and the rate of audience reached 90%.

5) The training program entitled “Transformational Breathing – Females (Arabic)” held from 24/4/2005 to 26/4/2005. The number of participants was 20 and the rate of audience 80%.

This clearly reveals a positive response by the trainee employees to these new programs. The final evaluation ratings of the trainees for these programs ranged between “Excellent” and “Very Good”.

What are the training programs covered by the new training plan, and what are the future programs you would like to offer in the field of alternative medicine?

In view of the remarkable turnover realized through these programs, the Petroleum Training Centre will offer them once more to the oil companies in the 2005/2006 training plan. These programs will be organized according to the needs of KPC and subsidiaries. Several contacts are currently made with the training firms organizing such programs in order to strengthen the employees ̓psychological health and identify the new concepts that can be introduced into the future plan.

blood letting to heal ailments. He then decided to work as a translator. One day when translating an article written by a Scottish doctor, it was saying that Quinin was a good medicine for ma-laria because it was a good astringent. But Hahnemann knew more astringent substances that had nothing to do with malaria. So he decided to try Quinin himself to find out about its effects. To his astonishments he developed ma-larial symptoms; fever, malaise, shiver, sweating etc. This was when he knew that Quinin treated malaria, not because it was an astringent but because when given to a healthy individual would in-troduce malarial symptoms. This made sense to Hannemann as it proved the very old principle of “Like treats like”. Like the ancient Greeks when for in-stance they had a patient with diarrhea they prescribed purgatives to enhance the bodyʼs own reactions.

Thus the difference between conven-tional medicine and homeopathy is how homeopaths acknowledge symptoms. In conventional medicine a symptom

After discovering the remarkable benefits of alternative medicine, Dr. Hanaa Shams El Din, leading oral surgeon, was spurred to learn the nuances of this fascinating science. Now she is a certified physician in Homeopathy and has been presenting a series of well-received train-ing courses on the importance of learning the techniques of Alchemical Breathing at the Petroleum Training Centre. In her inimitable sponta-neous style she talks to KPC World about the myriad benefits of this revolutionary self healing technique.

New Perspectiveon

New PerspectiveononLife

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illnesses after practicing Alchemical Breathing.

What are the benefits of Alchemical Breathing?

It has been found that restrictive breathing patterns support subcon-scious defence mechanisms to suppress unpleasant emotions. In fact, such un-healthy breathing patterns are often the result of previous attempts to cope with traumatic emotional or physical events dating back as early as birth. When feelings go unexpressed they are con-sciously repressed or subconsciously suppressed or stored in the mind and body as chronic tension. It is inevita-ble that unexpressed feelings/emotions are eventually expressed as pain and disease. Since feelings are a form of energy, which cannot be destroyed, but can only change form, it is our respon-sibility to Alchemise & transform this energy before it causes disease in our bodies and/or minds.

Breathing is the one involuntary meta-bolic function that becomes voluntary the moment we choose to take the reigns. This begins to explain why Al-chemical Breathing ultimately leads to the vivid experience of co-creating our lives consciously, instead of being the result of random thoughts and events. We can choose to be at the mercy of life, or we can choose to master it.

Another benefit is that Alchemical Breathing brings focus to the mind, energy to the body in general, and strength to the muscles specifically. It also increases focus, performance, and endurance. It also increases en-ergy level and reduces stress. It also clears the way to better spirituality as it enhances the bond with the spirit. Increasing oxygen levels in the blood-stream is key to increasing the energy available to the mind and body. Al-chemical Breathing sessions energize participants with a large immediate in-flux of oxygen. It also retrains breath-ing mechanisms (muscles, lung tissue, habitual patterns) to take in more oxy-gen when stressed instead of the anxi-ety ridden FIGHT or flight reactions.

Can you advice readers on how to lead a healthier life style?

You need to follow the teachings of our Prophet (pbuh) and our religion. One cannot underestimate the power of smiling so you need to smile when you meet others. To establish a healthy life-style you need to exercise at least three times a week. Try to get an eight-hour night sleep at least four times a week to recharge your body. A diet full of fresh vegetables, fruits, whole grains and drinking lots of water is essential. No need for meat except once a week.

is a manifestation of a disease. In ho-meopathy symptoms are acknowledged as the mechanism chosen by the body to treat itself. That is why homeopathy never attempts to suppress them. In ad-dition to that if the medication used is given to healthy individual will intro-duce the same symptoms they treat. Can you explain the importance of Alchemical Breathing?

Oxygen-rich blood is the key element needed by the body to create healthy cells. Healthy cellular regeneration is essential for good health: it has proven to be the antidote for many sicknesses. On the other hand, if most people are using only one-third of their Lungs when they breathe, they would be get-ting only around 30% of the air and oxygen they need for good health. Is it any wonder that one out of every two people is experiencing serious disease? Alchemical Breath teaches how to breathe more effectively. Al-chemical Breath techniques open up the entire respiratory system to allow for more frequent and freer in and out flow. Alchemical Breath increases oxygen levels and breathing capacity by restructuring individual breathing patterns so that a personʼs air volume increases, by two or three times or more. There are many documented accounts showing that physical symp-toms disappear in clients with chronic

Life Dr. Hanaa Shams El Din

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KNPC UnveilNew Corporate

Identity Kuwait National Petroleum Company (KNPC), a KPC subsidiary in charge of the refining industry in Kuwait, launched its new corporate identity early this year. The new visual identity, consisting of a new corporate logo was applied throughout KNPCʼs installations and fuel stations.

The new logo stands for key attributes for which KNPC is known: energy, performance, innovation, and its avid concern for HESE. The new corporate identity is emblematic of these attributes, as well as KNPCʼs leading role in the refining industry and the company's posi-tive reputation among its customers, partners and suppliers.

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To shed light on KNPCʼs new corporate identity, KPC World visited the compa-nyʼs Public Relations Department which is charged with overseeing the transi-tion to the new logo and implements the process to phase out use of the old logo throughout the company.

Over the coming months KNPC will ap-ply its new identity across all operating units. It will appear in company commu-nications and at facilities and offices.

The department manager and the mas-termind behind the media campaign, Mr. Mohammad Al Hajeri casts light on the new logo which replaced the old logo that has been used for around 60 years, and to discuss other matters that are of paramount importance.

The interview follows

Can you tell us more about the new identity and the significance of its colours?

Our new identity and logo signals KNPCʼs unique position in Kuwait and symbolises its various principal attributes. The colours selected for the new logo are highly con-sistent with the business, the deep-rooted expertise and the evolution of KNPC. The flowing, seamless colours of the new logo also represent the capacity and long expe-rience of the Company in the oil industry as well as the standards which it strives to achieve with its personnel. This is embod-ied by the red colour which symbolizes the power and deep-rooted presence of KNPC. The green colour represents the economic and industrial power of the Company as well as the unwavering energy of its per-sonnel. The green colour also embodies the Companyʼs care for the environment, security and safety and its keen interest to provide clean sources of energy. The blue colour reflects the spirit of innovation and development represented in the use of modern technologies.

The launch of the new logo was supported by an intensive media campaign. What did this cam-paign include to promote the new logo?

We had clear objectives and a very clear idea of our target audience while planning our media cam-

paign. Any successful campaign relies on reaching the targeted audience with the right communication means.

Previously, we had limited interaction with the public, however that is now changing as we expand our operations and increasing the number of fuel sta-tions in the country. True we deal with consumers but we had to design our campaign quite differently from other campaigns marketing consumer goods.

In fact, we organized a large media cam-paign that involved the coordination with international media corporations and with the big companies with which we deal in the international contracting field. The cam-paign also included press advertisements, road or bus posters and free vouchers to be distributed to the public. In other words, our campaign has a very broad scope to bring the desired goals to the public.

This campaign was launched through a press conference, and then press adver-tisements were released. Advertisement boards on buses and in the streets were also distributed as well as leaflets and fly-ers. It is worth mentioning here that the logo of the Company was not radically changed. We maintained some of the same elements that existed in the old logo such as the waves and some of the col-ours. This shows that we are a Company deeply rooted in our history and that we have not forgotten where we came from.

If the red colour undoubtedly sym-bolizes energy, how does the choice of the blue colour symbolize the techno-logical strength of the Company?

We pride ourselves as being a company at the leading edge of energy and in-novation. The logoʼs blue colour alludes to the technological strides KNPC has made and strives to achieve and continu-ing tradition of reliable service to energy consumers. Lately, KNPC launched several projects including the electronic control system of the refineries, the electronic management of the refinery, the electronic systems used in different departments such as the

Information Service Department which offers endless services to other departments, and the systems currently adopted in the final imple-mentation phase of the management

system of materials, maintenance, fi-nance or accounting, and personnelʼs affairs. It is indeed a huge project that relies on computers and on the full in-terconnectivity of units. It also reduces the use of papers and encourages the use of the Internet and the e-mail.

Will the use of modern technologies reduce the number of employees at the Company?

On the contrary, by using modern tech-nologies, we seek to upgrade the quality and not the quantity. Thus, technological

Mohammad Al HajeriKNPC Public Relations Manager

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means will not reduce the human re-sources of the company but will boost their quality and performance. KNPC is currently seeking to employ the national manpower to increase the contribution and efforts of the same in the oil sector. In other words, the Company is making further efforts to train and promote the skills of personnel in order to meet tech-nological requirements. We are asking for an 80% contribution of the national manpower into the oil sector although this industry is very hard and complex. Never-theless, most Kuwaiti citizens are seeking employment in the Company, probably because they are satisfied with the quality of work in spite of the obstacles and hard conditions of the oil sector such as the ex-treme weather conditions and the nature of work in external facilities.

The new logo gives an impression of comfort and ease; does the situation of the Company confirm this impres-sion?

Rightfully pointed, the new logo suggests not only the energy KNPC provides con-sumers but also the energy in the hearts of its people.

Job satisfaction and deep sense of pride in our achievements is prevalent in the Company and there are many tangible signs in this respect. For instance, we are proud to be exporting leaders and manag-ers to other companies in the oil sector since we have a high potential to transfer qualified manpower.

KNPC draws its strength from its people. Therefore, it goes without saying that we would not have reached that status with-out the flowing motivation, loyalty, satis-faction and endless efforts of our person-nel. It is noteworthy that most leaders in the oil sector have made their first steps in this Company, thereby giving us sup-port and momentum to make more efforts towards developing skills.

What are the procedures currently taken by the Company to unify the use of the new logo?

As regards the logo and the importance of unifying its use in KNPC, an ad hoc com-mittee, chaired by the Manager of Public Relations, was constituted. It is comprised of members from the PR Department and from all KNPC departments whether the refineries or the public services. Unifying the use of the new logo involves many aspects such as the printing issues, the stationery, the Companyʼs buildings, the refineries and the fuel stations. It is aimed at covering all the facilities of the Com-pany since the Board of Directors and the Committee have decided to assign to one Department the mission of using this logo including the design of prints and others. This came after the decision made by the Chairman of the Board of Directors to give the PR Department the sole authority to control every new use of the logo and, in the context of unifying the new logo, to control issues related to the stationery and prints of the Company. In fact, a decision was taken to prevent other departments from introducing changes to these prints without the prior consent of the Commit-tee. Besides, a unified numbering was adopted for papers, letters, exter-nal prints, interior memoranda, fax models and records of meetings and no other de-partment has the author-ity to change the logo.

Regarding visit cards, they were printed and designed by many departments. Thus, some used to print them with a long format, others with a large for-mat. Some used to put the logo on the right, others on the left. However, now, there is only one pattern adopted for all visit cards where only the name, address

and phone numbers change but their loca-tions on the card are the same.

The ad hoc committee recommended, among others, to unify the display model. For instance, if the Local Marketing De-partment offers a display to another De-partment, it should bear the same design except the name and the phone numbers.

Furthermore, the Companyʼs site on the Internet has the same pattern now. This is very important to unify the public image of the Company.

Working in this sector that includes all forms of energy involves many risks. It requires several safety and protection measures for the employees, the facili-ties or the public in general. Can you give us an idea about the procedures taken for the prevention of dangers?

Working in dangerous places requires the elaboration of rules and regulations of safety to protect the lives of employees and the public we are dealing with, and to protect the equipment and facilities we are using, to avert any material losses. Since its foundation, the Company gives a particular attention to this matter par-ticularly in the past few years since it has

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created safety, health and environmental departments for KNPC or the oil sector as a whole. For instance, in KNPC, we have several safety regulations in our refineries. Besides, the management and operation of fuel stations are as risky and delicate as the facilities.

The employees of our refineries are well trained to work under all circumstances and to deal with any contingency inci-dent that might take place. Nevertheless, working in fuel stations is harder since it involves working with people and car drivers of different nationalities and educational backgrounds. This makes it harder for us to control the safety issues and requires further awareness-raising campaigns by the Company to prevent dangerous accidents in these stations.

Awareness-raising and safety campaigns are still prepared. Several campaigns have been prepared so far, the latest of all being the safety campaign of fuel stations where a funny personality named “Salama” (or safety) was chosen to talk to the public about the risky behavior in fuel stations and the means of safety protection. Thank God, the campaign has had a good start in March and is still going on with efforts aimed at developing it further.

Furthermore, we are working on two fronts. The first is related to the techno-logical and scientific means to develop better safety and security conditions in oil facilities, while the second front is related to continuous awareness-raising campaigns about the safety of the person-nel and the public.

What are the projects related to the technological development and that provide further safety and security measures?

There is no doubt that establishing these projects, selecting the specifications of equipment and materials and introduc-ing or extracting the used materials are all subject to particular conditions. Even if these equipments are more costly, the Company spares no expenses to pay all its dues in this respect.

Besides, the creation of fuel stations ac-cording to particular specifications always takes into account the safety measures related to the facility or to its personnel,

along with other measures adopted by safety departments to protect the safety of employees in oil companies. Regard-ing the used materials that are introduced and extracted, they are anti-sparks. Be-sides, the used fuel and laboratory have specifications that prevent sparkling or dangers in the facility.

Will there be automated equipments that can prevent, stop or control fires or other incidents in fuel stations?

Some stations in KSA are using such equipments but Kuwait has not yet adopted them. In new stations, we will use the automatic gas system to re-duce the dangers of fires until we re-ceive the specialized equipments for fire prevention. However, the cur-rent techniques available in fuel stations are automatic equipments for the supply of fuel and the reduction of potential dan-gers in the station. Besides, manual fire equipments and other means are used for this purpose.

Can you give us an idea about the media campaign launched by the PR Department regarding safety in fuel stations?

The media campaign has included sev-eral activities and, thank God, it has received very positive feedback from the public. We have launched the campaign by placing advertisements in the daily newspapers to inform people about safety procedures, as well as radio ads that have reached the number of 210 within two weeks and were broadcast as full spon-sors or co-sponsors of the most famous programs. Besides, around 105 advertise-ment boards were placed in streets within two weeks, 25 ads on buses and thousands of leaflets and posters were distributed to the public in fuel stations. Different kinds of brochures were also distributed in cin-emas according to the background of the targeted public and internal prints were handed out to raise awareness. Many more ideas were also introduced such as the distribution of a newsletter about safe-ty, the organization of a contest including many questions about safety measures and several incentives to encourage peo-ple to read the leaflets related to safety.

Despite all the awareness-raising cam-paigns carried out by the Public Relations

Department and the Local Marketing Department, the questionnaires carried out so far have proved the necessity of increasing these campaigns. Therefore, it was decided to create an ad hoc aware-ness-raising committee that includes the PR Department and several divisions such as the Local Distribution Division and the Safety Division. The committee is chaired by the PR Manager and is composed of the Coordinator of Media & Prints in the Department, the Senior Supervisor of Me-dia, and the Safety Supervisor from the Local Marketing Department, the Distri-bution Supervisor, and the Supervisor of Technical Services. This Committee has organized the latest media and awareness-raising campaign and it is still making ef-forts in this respect.

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KPC & K-Companies’ Oil Spill Contingency Plan

The Kuwait Petroleum Corporation (KPC) & Subsidiaries oil spill contingency plan has been developed to The International Petroleum Industry Environmental Conservation Association (IPIECA) guidelines.

By: Captain Awad SaeedManager Environment& Oil Spill Response Kuwait Petroleum Corporation

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adverse impact on KPC and Subsidiary company business activities.

Purpose of the oil spillcontingency plan

The plan requires the KPC affiliatedcompanies (Subsidiaries) companies to develop its own oil spill contingency plans to activate a timely response for Tier 1 & Tier 2 Marine and Land oil spills. The plan shall be integrated with the corporate (KPC) and Kuwait National Oil spill Contingency Plans. It also contains similar information for a corporate role in coordinating support response resources to Tier 2 & Tier 3 oil spills within Kuwait through The KPC Incident Management Team (IMT).

Scope of the plan

National Level (Kuwait): The size, location and timing of a spill is totally unpredictable. KPC affiliatedcompanies are at risk from a variety of sources and activities ñ from on-land interceptor operation, on shore and sub-marine pipelines, vessel loading and marine accidents off the coastline involving KPC ships or cargoes. KPC and its affiliated companies may alsobe required to respond to any marine accident that threatens oil pollution of the Kuwaiti shoreline, as defined in theKuwait National Marine Oil Spill Con-tingency Plan. Affiliated Companiesmust have their own oil spill contin-gency plans to cater for Tier 1 and tier 2 marine and land spills, integrated at

(Tier 2&3) with the KPC plan. In the case of major spills (Tier 2/3) and/or begin to impact outside of the site, KPC will coordinate with the affected company the spill response including pooling off the oil sector combined oil spill response resources and enrol external organisation involvement. The plan covers all aspects of assessing an oil spill, organising and mobilising an appropriate response to the spill and co-ordinating / liaising with the range of external organisations which may become involved.

Authorities and responsibilities

Kuwait National Marine Oil Spill Contingency Plan:

The Environment Public Author-ity (EPA) is the co-ordinating agency for Marine oil spill response. The EPA chairs the Kuwait National Marine Oil Spill Contingency Plan established to deal with oil pollution matters.

Kuwait Petroleum Corporation (KPC) and affiliated Companies aremember of the Kuwait Marine Oil Spill Contingency Plan Committee. Kuwait Oil Company (KOC) is the oil termi-nals port authority.

Any spill at KPC affiliated Com-pany Marine facilities, would be dealt with by the KOC.

Captain Awad SaeedPast events in Kuwait and else-where in the world have heightened awareness of the risks and consequenc-es of oil spill at sea, on the shoreline or inland. The possibility of an oil spill, however remote, generates concern within the company, local and national authorities, government and media. If a spill has occurred all of these parties generate an intense demand for infor-mation and action and these pressures will focus on KPC and the affiliatedcompany concerned. If the incident is not handled correctly it can generate complex technical, legal and public relations problems, exposing the com-pany to considerable cost and serious damage to its reputation both in Kuwait and internationally.

Prevention remains the cheap-

est and best possible cure and, within KPC affiliates, priority must be givento maintaining and upgrading methods of oil spill prevention. However, should a spillage occur, a rapid and effective response will be critical in minimising the resulting pollution and in demon-strating KPCʼs commitment. When such circumstances arise, the optimum organisational structure and procedures will depend very much on the nature and severity of the incident. No two incidents will be the same hence the purpose of the plan is to provide in-struction, guidance and information on a tiered response appropriate to the size, location and potential impact of the spill. The objectives of the plan are to minimise ecological damage and the

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International Level (International operations outside Kuwait)

Kuwait Petroleum International (KPI): has its own oil spill contingen-cy plan developed in accordance with relevant national/ international oil spill legislation. At the Tier 2 and Tier 3 lev-els the site-specific oil spill contingen-cy plans are integrated with KPC Plan through KPI Crisis Management Team (CMT).

All KPI assets have to implement the Oil Spill Contingency Plan, which integrates the operating units and site plans with the respective countryʼs Na-tional plan for spills within the Euro-pean Union Thailand territorial waters. The national competent authorities define the relevant oil spill legislativerequirements for operators. The mini-mum requirement would define KPIʼsresponsibility for Tier 1 spills and inter-facing with other bodies in the event of Tier 2 or Tier 3 spill.

International Spill from vessels incidents in countries where there is no KPI operating unit the KPI Marine Oil Spill contingency plan shall be imple-mented.

KOTC: For any oil spill, a planed Shipboard Oil Pollution Emergency Plan (SOPEP) is maintained as outlined in the company's Shipboard Manage-ment System "Vessel Response Plan & Guidance on Emergency Procedures" in accordance with National and Inter-national rules, regulations and guide-lines integrated with KPC Oil Spill Contingency Plan.

KPC International Marketing (KPC Marine): has response plan/ co-ordination procedure with the charted vessels owners for National and Inter-national Oil Spill.

Training and exercises in imple-mentation of the mitigation procedures

must be held at regular intervals. Simi-larly, exercises in the communications procedure will also be necessary.

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KOC/KNPC MARINE & LAND SPILLS PLAN EXERCISE 2005

DurationManagementSupervisorsOperatorFrequency NotesDate Date

ExerciseMarineLand

NotificationExercise

1-2 hours

••••••6 MonthlyTest communication systems, check availability of personnel, evaluate travel time to agreed site and arrangements can be made

Dec. 2005

•• KOC May & Nov. 05

·• KNPC Monthly as part of MIPP dr

Table Top Exercise

2-8 hours

••••AnnualConsists of interactive discussions of a simulated scenario among members of a response team but do not involve the mobilisation of personnel or equipment

Dec. 2005

•• KOC June 05

·• KNPC MAB- Jul’05 MAA- Aug’05 SHU-Sept

Equipment Deployment Exercise

4-8 hours

••••••6 Monthly combined

with refresher training

Test the capability of a local team to respond to a Tier 1 or 2 type spill. Might be run in conjunction with a Tabletop or Incident management exercises.

April 05

Sept.05

•• KOC May &

Nov. 05

·• KNPC MAB

Feb’ 05MAA

April’ 05 SHU-Jul

Incident Management Exercise

10-14 hours

••Annual (with

outside agencies

- EPA)

Demonstrates spill response management capabilities, integration of roles of different parties, focus on overall incident management aspects.

Dec. 2005

KOC April &

Sep 05.

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The interview follows

You have been bestowed with the challenging yet prestigious task of establishing KPC China Office. How did

you react when you were told that you had been selected for this coveted position?

The decision entrusting me to manage and establish KPCʼs Representative

office filled me with pride and honour. I am extremely proud at the great faith the Senior Management of the International Marketing Sector has in me to manage and establish the office. Opening the office marks an important step towards implementing KPCʼs expansion and growth plans in China.

Yet I am aware of the huge challenges and responsibilities that lay ahead due sheer size and magnitude of the Chinese market and the fierce competition that exist.

Currently, Kuwait does not feature among the first ten countries that supply China with oil and petroleum products. Consequently, the Representative Office shoulders the responsibility of boosting

Great journeys always start with a single yet significant step. March 2005 will go down in the history of Kuwait Petroleum Corporation (KPC) as the month the Corporation made a giant step towards realizing its strategic aspirations in China, the rising economy power.

The International Marketing Sector at KPC inaugurated that month a Representative Office headed by Mr. Haithem Al Ghais who brings to the new post a vast and extensive experience in the field of marketing oil and petroleum products.

The early foundation years are always viewed as the most difficult and challenging, however, Mr. Al Ghais firmly believes that KPC is capable of fulfilling aspirations and attaining big successes thanks to the business attributes and expertise it possesses.

KPC China Representative Office : First Pillar of Future Expansion Plans

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current business dealings and reinforce KPCʼs presence there. However, I remain undaunted by the challenges that we are bound to encounter and I am determined to rise to the challenges and to play an active role in strengthening Kuwaitʼs presence in this highly promising market.

Owing to the enormous investment opportunities in the Chinese market, notably in the oil industry, you find that most international and Gulf oil companies are competing to gain a solid ground. Moreover, attaining a stronghold in China features prominently in the future plans of all industry majors.

KPC considers China as lucrative market and a promising outlet for Kuwaiti investments. As you may recall, in light of Chinaʼs economic and investment importance His Highness the Prime Minister, Sheikh Sabah Al Ahmad Al Jaber Al Sabah made an official trip last year of the Far East to seek joint cooperation opportunities in the oil field and explore other business avenues.

The trip has ushered in a bright cooperation avenue between Kuwait and the Republic of China. The inauguration of the Representative Office was the fruition of that visit and the outcome of the remarkable and strenuous efforts made by the International Marketing Sector at KPC. I honestly say that the office as an extension of the integrated business of the Marketing Sector a link of a long and firm chain.

How do you describe your experience thus far as the Manager of the Office? In retrospect, the few months of handling the office were fraught with challenges that came hand in hand with remarkable achievements.

I took over the responsibilities of the office officially in February this year. Initially, I had to equip the office in all areas and secure the communication means and ensure the smallest detail. Since we were founding an office in Beijing we had to start from scratch.

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I would like to commend here the role of the Information Technology Department at the International Marketing Sector which has sent a special envoy to provide and install all communication means and equipment. One the personal front, I also had to arrange my living conditions to settle in the country and to organize some personal matters such as registering my children in school and other matters that entailed time and effort.

As for the achievements, the office succeeded during the first month of operation building exceptional business relations with several; Chinese companies that KPC had previously dealt with as well as new companies that had not dealt with before. Visits have been made to six major refineries which left a positive impact and reflected KPCʼs keenness to develop relations in the future.

Undoubtedly, these achievements represent a good beginning and augur well for the success of our plans at creating a strong platform to embark on bigger projects in the future.

Can you mention the key challenges that you foresee in the future? As I mentioned earlier, the challenges are extremely huge due to several factors. Most importantly, KPC was not a key player in the Chinese market for a long time. Therefore, we need first to get acquainted with the nature of the market and grasp the commercial dealings market and then get adapted to them which could take some time. We should also adapt ourselves to this nature and consider the commercial dealings of China in order to get acquainted with them, and this might take us a considerable period of time.

The second challenge is the language barrier which represents a considerable obstacle. The Chinese

market was enclosed and in isolation for a long time, that is why you find that very few people speak English. Thus, I have encountered some difficulties in making direct discussions with oil companies and had to rely on a Chinese translator and had no option but to make all the necessary correspondence and contacts in Chinese. To offset this challenge, I decided to learn the Chinese language and I already started to take language courses. I am confident that this initiative will win the admiration and respect of the companies we will deal with. I learnt from past experience while dealing with other Asian companies that customers in Asia respect those who try to learn their language and respect their traditions and customs.

The other challenging factor is the difficultly in marketing the Kuwaiti product to an extent. Kuwaiti crude oil is characterized as heavy crude with high percentage of sulphur compared to our competitors. However, I am confident that we will be able to overcome all these challenges with a spectacular success if Allah wills.

The official inauguration ceremony of the Representative Office was

Haithem Al Ghais

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one of the best organized and well attended events in the history of KPC. Moreover, it was broadly covered by the international and local media.

I treated organizing the inauguration reception as a personal challenge and I left no stone unturned to ensure its success. Organizing the ceremony entailed intensive period of extensive preparation. The venue and the guest list were carefully made. All the hard work and effort was abundantly rewarded and its success surpassed all expectations. The event was heavily attended and enjoyed broad media coverage. Guest lauded its meticulous organization and preparation.

International and local media agencies made sure that they sent representatives to cover the event and they were in full attendance. Several press and television interviews were conducted with KPCʼs delegation headed by Mr. Jamal Al Nouri, Managing Director International Marketing, and the news of our grand opening featured prominently in all economy reports and publications. Industry analysts commended KPCʼs decision to enter the Chinese markets.

The visit of the Kuwaiti delegation and the inauguration of KPCʼs Office

captured the attention of the official Chinese media. The Chinese Television invited Mr. Jamal Al Nouri and Abdulatif Al Houti – President Kuwait Petroleum International Company, to take part in a program called “The Dialogue” which is aired in English and is considered one of the most important economy programs in China.

Kuwait T.V had an exceptional coverage of the reception interspersed with interviews with Mr. Al Nouri, Al Houti and Naser Al Mudhaf, Executive Assistant Managing Director Marketing.

Industry observors and economic analysts believe that KPCʼs decision to step into Chinese markets came late especially that many other oil companies from the Gulf and the world have preceded the Corporation. What is your opinion in this respect?

I believe that KPCʼs decision to enter the Chinese market was a timely one. It was thoroughly studied and carefully deliberated. Our foray into the Chinese markets coincides with the Chinese Government decision to open its doors wide for foreign investments. Until the last few years ago, the Chinese markets have been extremely isolated making it

very difficult for foreign investors to penetrate and it took long years for any investment to yield their any success. For example, it took the Kingdom of Saudi Arabia seven years of ceaseless efforts to set up its projects in China and create a customer base for Saudi oil and oil products.

China is now witnessing an encouraging economic boom and is providing investors with large and enormous investment opportunities. China is ranked second world oil consumer after the United States of America and oil experts expect that the demand on crude oil and on oil products will remarkably soar in the coming few years due to the increasing foreign investments.

KPC has all the attributes that qualify it to become a force to reckon with in the new world economy structure. During our first year in China, we are exploring all new opportunities, providing the head office with periodic reports and information related to the oil market and means of increasing oil cooperation between the two countries. All signs indicate that Kuwait will acquire a large share in the Chinese oil market but this requires some time and effort. I can confidently say that gaining ground in the Chinese markets is an achievable goal.

Part of the China office reception

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China is the world's most populous country, with a continuous culture stretching back nearly 4,000 years.

After stagnating for two decades under the rigid authoritarianism of early com-munist rule, China now has the world's fastest-growing economy and is un-dergoing what has been described as a second industrial revolution.

In the early 1980s it dismantled collec-tive farming and allowed private enter-prise again. Now it is one of the world's top exporters and is attracting record amounts of foreign investment.

Having gained admission to the World Trade Organization, China will benefit from increased access to foreign mar-kets but in return will have to expose itself to competition from abroad.

This is expected to spur private enter-prise and hasten the demise of state-run industries, but some Chinese fear it will come at heavy social costs such as un-employment and instability.

The fast-growing economy has fuelled the demand for energy. China is the largest oil consumer after the US, and the world's biggest producer and consumer of coal. There has been a massive investment in hydro-power, including the $25bn Three Gorges Dam project.

Demand for oil in China continues to surpass expectations and is maintaining high oil prices, according to the Inter-national Energy Agency. China has become a decisive but unpredictable player in world oil markets, because its fast-growing manufacturing economy is prone to sudden shifts in petroleum demand.

Oil analyst Daniel Yergin, Chairman of Cambridge Energy Research As-sociates said "China will be the most dynamic element in the oil market for several years," He added that China last passed Japan to become the world's second-largest oil market, after the U.S."

"Robust end-user demand and the reappearance of tight primary stocks, including localized product shortages, suggest that second-quarter apparent demand may again exceed expecta-tions, despite seasonal maintenance at several large refineries," the IEA said.

China: The World’s FastestGrowing Economy

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By: Dr. Fatemah Al Shatti Coordinator Environment Kuwait Petroleum Corporation

Wastes are materials that accompanied man over the past several decades and have always been a source of pollution to the environment, regardless of the type of wastes.

Wastes may be defined as undesirable materials that may pollute the environ-ment if we fail to treat it for our benefit either at source or by adopting proper scientific ways to dispose of it.

In 1970 the celebration of the Earth Day began. Since that time, the friends of the environment have increased and there has been a great environmental awareness, which led to a real desire to put an end by taking steps to solve the ever-increasing burden of garbage which will help protects the natural resources. This can be achieved by

KPC’s Green Office Project

awareness as to the method of using raw materials.

2) Reuse of wastes: This may be in-terpreted in the reuse of paper, but printing on writing on the back side, or reusing plastic or glass bottles in order to reduce wastes.

3) Recycling, which involves reusing the wastes in order to produce other products of a quality lower than that of the original product.

4) Recovery, which means the using

waste recycling, one of the four basic elements on which waste management is built. These elements are commonly known as the 4R, of which we must all be aware:

1) Reduction, involves reducing the consumption of raw materials, which, in turn, reduces the produc-tion of wastes, as follows: a) Using raw materials that pro-

duce less wasteb) Reducing the use of raw materi-

alsc) Increasing environmental

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Dr. Fatemah Al Shatti

(Table 1)Quantity of solid domestic wastes expected to be generated

by the various residential areas and the areas of wastedumping sites required every five years

Dump Area(000 square meters)

Dumped quantities(000 tonnes)

YearsSer.

77545601995-1999187851832004-20002101559972005-20093117169142010-20144159493972015-20205543332051Total

References:1) Table 1 (Environmental Strategies for Solid Waste Management) by Dr. Mishaal Al-Sakkan, 1997.2) United States Environment Protection Agency 3) Executive By-law of the Law No. 21 of 1995

any potentially harmful residues, and even such residues are now used in several advanced countries in the building industry.

This process can result in a thermal en-ergy, which can be exploited in indus-trial operations or in the generation of steam or electric power.

In the State of Kuwait, there is a lack of accurate statistics about the size of the losses from the recycling of wastes of all kinds. This by itself is an indication of the existence of a problem in a coun-try where the per capita waste produc-tion is 1.4 kg per day, and the landfill locations is estimated on the bases of the density of domestic solid wastes be-ing 590 kg per cubic meter, and where the average depth of waste dumping locations can be as deep as 10 meters (Table 1).

There are more than 15 landfills sites in Kuwait, the largest being located in the Jileeb area. Global studies on the sub-ject confirm that waste quantities that are sent every day to the landfills for disposal without considering the stand-ard method of waste disposal.

Municipal wastes can be very ben-eficial if we start segregations from the source this will help reduce the amount of wastes, part of those waste materials that can be used from municipal wastes, such as paper, carton, plastic and glass bottles and other materials, thereby re-ducing wastes from source will protect the Earth and the natural resources.

of thermal recovery technologies in the disposal of solid wastes, hazard-ous solid and fluid wastes, hospital wastes, compost and other wastes by burning them in special furnaces designed with high specifications, at temperatures of 1200 - 1400 de-grees Celsius at which level the burning is total and does not leave

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34at KPC is a civilized achievement that shows our feeling of responsibility, and our realization that we all work to serve one Earth which will give us as much as we give it. For this reason, the pro-tection of the environment should be regarded as a trust for which every one of us is responsible.

Plastic containers will shortly be dis-tributed to the offices. They will carrythe logo of KPC and the logo of the UN Recycling.

A last word: The success of the recycling project

KPC aims to protection and reduce the overall environment and conserve re-sources for our future generations, by implanting the national and internation-al laws and regulations in the region and the entire world, and to apply the 4R rules in our operations. For this rea-son, the Green Office concept is not en-tirely new, but illustrates the response and interaction of the members of the KPC family with this subject most se-riously and with a high level of flex-ibility. As we believe there is only one Earth, Protect It Protect you.

II - Environmental Achievements

Protecting the environment is one of our most important responsibilities, for each ton of paper that is sent to the landfill site occupies more than 2.5 cu-bic meters, while it is possible to bene-fit from the paper and preserve the landarea, which by itself is a most precious resource. To this end, KPC contributes to the efforts of protecting the environ-ment.

Through this experiment, KPC want to familiarize society with the environ-ment problems and methods of address-ing them by simple scientific means andmodern technology.

Is this Project limited to office wastesonly?

This is a project for the protection of the environment, and, as such, it is not limited to the paper wastes generated by offices, but extends to the waste ma-terials of the cafeterias, such as juice containers, biscuit cartons and water bottles.

A container has been placed on every department , near the photocopiers and one near the cafeterias. Waste items are collected by the cleaning company at KPC for removing them to the place where the re-cycling company will col-lect them.

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is reflected in the creation of the PublicAuthority for the Environment whose function is to protect the environment.

Nation with high standard of living, productivity, industrial development, and population growth tend to have more municipal solid waste, if we donʼt take care of our waste from the source then we are going to have a big prob-lem, therefore, as we are all part of this problem we can also be part of the so-lution.

The “Green Office” Concept at KPC

Paper Recycling

Paper recycling is an operation that yields high environmental and eco-nomic returns, for, according to a study by the US Environment Protection Agency, the recycling of one ton of pa-per saves 4100 kilowatt/hour of energy and 28 cubic meters of water, in addi-tion to the reduction of air pollutants by 24 kg.

Environmental security consists of the requirements that are necessary for the welfare, security and stability of nations, all of which are targets con-tinuously pursued by our government in view of their importance to the na-tion and the country. This importance

I - The Environment and Environ-mental Security

There are many environmental defi-nitions, one of which being the place where man lives with other living crea-tures.

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36 The oil refining industry is considered as one of the most dangerous industries. This is mainly attributed to its complex operations and its basic operating charac-teristics. Petroleum refineries all over the world have played an important role in many cases, in terms of local and global consumption. Even if operations are really risky, a petroleum refinery that is well designed and well equipped with a protec-tion system can operate safely.

Fire Protection in Oil Refineries

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The different ways of fire protection in-clude all the steps taken by the fire-ex-tinguishing department to control the possibility of the fire outbreaks that get out of control. Usually, the means of fire protection used by the fire-extinguishing department largely depend on inspection. Some of the factors that help control fire are architectural practices, implemen-tation of standards, overall awareness programs regarding fires and monitoring fires.

Inspection is the legal means to find and check the weak points and defects that endanger human lives and prop-erties due to fires. The enforcement technique might be used when other means seem inefficient. The education technique is used to notify employees and raise their awareness regarding fire hazards and safety measures. There-fore, predicting fires contribute to the efforts of fire protection by hi-lighting the defective aspects that may require corrective teaching efforts or proper legislations.

Architectural planning is also viewed as another efficient means of protection to offset fire outbreaks. This helps reduce the speed of fire when it breaks out.

The importance of fire protection was not clearly comprehended until the extin-

guishing departments started compiling meaningful information regarding the causes and prevailing conditions of fire. When the fire department started making more efficient efforts to prevent fires and boost the skills of the fire extinguishing staff, information regarding defective as-pects of current fire prevention came into light.

The results of fire protection efforts are now taking new forms every year. Many statistics confirm the efficiency of fire protection programs. In 1973, the efforts made by the National Fire Protection Association (NFPA) that gives top priority to the reduction of losses caused by fires, have gained full public support when the Associa-tion published the results of a compre-hensive study it carried out regarding fire problems in the United States. In-deed, in its report entitled ìAmerica is on fireî, the Association confirmed the need for more fire protection activi-ties to reduce the opportunities of fire outbreaks. The Association considered that putting more stress on fire preven-tion would have an impact on the con-ceived impression about America and about the losses she incurs due to fire outbreaks. This attitude of the Associa-tion justifies the statistics regarding the fields where fire prevention activities were undertaken.

By: Mohammad Al Tahous Chief Fire Extinguisher Kuwait National Petroleum Company

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Oil Refineries

Just like the other industries, oil refiner-ies go through three main stages:

1- Crude Oil

2- Crude Oil Treatment

3- Product

1- Crude Oil: For oil refineries, the raw material used is the crude oil that is delivered by the following means:

a) Ships

b) Road Tankers

c) Pipelines

Crude Oil is delivered through the afore-said means and is stored in reservoirs in-side the oil refineries. The quantity of the stored crude oil differs according to the processing capacity of the refinery and the supply schedule. Regardless of the high reliability of supply, it is essential to keep contingency stocks of oil to prevent unnecessary shutoff of the unit.

Storing large quantities of crude oil presents a great danger in any fire out-break and can be hardly avoided. The odds of a fire outbreak due to storing in-crease when the crude oil is transferred from the reservoirs to the processing units. Usually, the crude oil is transport-ed via pipelines and pumps, and every means of transportation has its own fire hazards. We will be describing in details the different types of fire hazards related to the transfer of crude oil and its means of transportation.

2- Treatment of Crude Oil:

Treatment of Crude Oil refers to the main activity of the oil refineries. The process-ing of oil is carried out to produce dif-ferent kinds of products and meet the marketʼs needs. The main processing is basically the distillation of crude oil. The development of technology has brought about several changes in the distillation process as well as the other processes in treating crude oil, in order to stream-

line the process and meet the marketʼs needs.

The various processes for treating crude oil are the following: Distillation, Cata-lytic Cracking, Hydro-cracking, Reform-ing etc.

The crude oil processing unit usually in-cludes a distillation tour, a furnace and pumps to transfer oil to different com-ponents of the unit. Crude oil processing risks many fire hazards as different com-ponents of crude oil are transferred at a temperature exceeding their flash point after cracking.

3- The Product:

Oil refineries produce several products with different chemical and physical characteristics, ranging from petroleum gas to asphalt. Some refineries also have a unit for extraction of aromatics that produce gasoline, toluene and some oth-er aromatic compounds.

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Below are some of the main products of oil refineries:

a) Refinery gas (it is not usually sold but is used for furnace ignition)

b) Liquefied petroleum gasc) Naphthad) Gasolinee) High speed dieself) Keroseneg) Fuel oilh) Bitumen (Asphalt)

Every product listed above has its own flash point ranging from -40∞C to -200∞C. Due to their different processing needs, many of the aforementioned proc-esses are carried out at a temperature ex-ceeding the flash point of the products.

Feed Side Hazard

There are several hazards related to the storage and transfer of crude oil, and many fire outbreaks occur due to ëfeed-ing ̓ in oil refineries. The main hazards

of the side feed equipment are attributed to the large quantity of inflammable sub-stances used such as:

- Storage Tanks- Feed Pipelines- Pumps

Petroleum reservoirs are usually safe but poor maintenance or operational errors can cause disasters, along with natural disasters that can badly affect its integrated performance. Furthermore, pipelines are more or less similar to petroleum reservoirs but with different shapes, volumes, operating pressures and temperatures. Most severe disasters that occur in pipelines or petroleum reser-voirs are attributed to poor maintenance, operational errors, natural disasters and deliberate sabotage.

The Prevention System:

For many decades, experience has proved that careful and well planned operating of any refinery ensures a high degree of safety. The expression ìPrevention

should start from drawingî is a true state-ment related to the design of oil refiner-ies. However, whatever the case may be, only well-designed equipment does not necessarily ensure total safety of the re-finery; operating procedures should also be executed carefully and thoroughly.

The Protection System:

The following methods ensure the pro-tection of feeding processes in oil refin-eries:

- Design a good system for fire control.

- Provide water sprinkler system to prevent explosions.

- Provide ëfoam valves ̓system. - Provide a sealing fire prevention

system for the rims of floating-roof reservoirs.

- Provide a foam injection system.- Provide a mobile fire extinguisher of

the powder/foam type. - Provide long-range foam and water

guns.

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KPC's vision

is to become a regional leader

in HSE performance

P. O. Box: 26565 Safat 13126 KuwaitTel.: (965) 2400960 - Fax: (965) 2407872

Website: www.kpc.com.kwE-mail: media@kpc.com.kw