kuwait digest koc

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

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

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

Editor-in-ChiefKhaled Madhi Al-Khamees

Deputy Editor-in-ChiefAbdul Khaleq Al-Ali

Cover:The Kuwait Oil Company continues to implement state-of-the-art hardware and software to make operations faster and easier.

The Kuwait Oil Gate7

October - December 2009

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

Information TeamP.O. Box 9758Ahmadi 61008, KuwaitTelephone: 965-398-2747Facsimile: 965-398-1076E-mail: [email protected] visit the KOC homepage athttp://www.kockw.com

Successful Implementation of ‘Dual Concentric ESPPilot Study’ for Well RA#186, located in North Kuwait Asset

18 Contents

KOC-Housing Allocation Workflow System

The Crisis Management Center22 24

The Essentials of the Hajj44

Letter from the Editor 2

Community of Project Management 3

2030 Strategy Update 4

ISO9001:2008 Quality Management System 6

The Kuwait Oil Gate 7

Electronic Work Permit Project Campaign 8

Carbon Trading and the Oil & Gas Industry 9

Impressive Achievements –and a world first – from KOC’s Oil Recovery Team 12

Record Achievement for KOC Drilling 14

A Simpler, More Accurate Peak Oil Prediction Model 16

Successful Implementation of ‘Dual Concentric ESPPilot Study’ for Well RA#186, located in North Kuwait Asset 18

Petrel Software Helping KOC Optimize Performance 20

KOC–Housing Allocation Workflow System 22

The Crisis Management Center 24

Performance Of Thermal Recovery Processes In Lower Fars Formation-Experimental & Numerical Evaluation 25

Women in the Workplace 28

The Sky’s the Limit 30

The Good Engineer 32

College of Engineering & Petroleum Design Exhibition 34

Water and Electricity Campaign 35

Hidden Talents 36

Stress 38

Camels 40

Spreading AWAREness 42

The Essentials of the Hajj 44

Brazil’s New Gas Law 47

Economic Downturn Reduces Recruitment Activity in the Gulf 48

Khaled Madhi Al-KhameesDeputy Managing DirectorAdministration and Finance

2

The second quarter of the 2009/2010 fiscal year was witness to many achievements by the Company and its personnel and contractors; a record 10 years of no LTA was achieved and KOC’s oil recovery team made a world first. In addition, KOC staff were involved in state-of-the-art oil prediction model forecasting and continue to implement the newest and most relevant technology. Two important new additions to the workings of the Company include the electronic work permit and the electronic housing allocation system, both of which will make the processes more fair, accurate, and easy to access.

Concern for HSE issues was also evident with the Company’s participation in a nation-wide water and electricity saving campaign aimed at having employees and their families become more aware of how limited valuable resources are and what each one of us can do to reduce our dependency on these resources. Also, seminars and workshops aimed at reducing work-related fatalities, particularly motor-vehicle, continued unabated in the various Directorates. Finally, the Crisis Management Center in the Main Office tested new technology in its continuous efforts to ensure that emergency response is as detailed and efficient as possible.

Of interest not only to KOC but to the larger oil industry community is the implementation of the 2030 strategy, set to take place in the coming quarter. This new strategy, which is based on the 2020 strategy goes even further into the future and includes the entire upstream sector, will allow the companies to integrate and coordinate certain technologies and practices.

October - December 2009

3October - December 2009

The Community of Project Management (CofPM), under the sponsorship of the Kuwait Oil Company (KOC) Deputy Chairman and DMD-Planning & Gas, Mohammad Husain, was initiated in October of 2008, as part of the Best Practice Program. Given that project management is applied within all of the K-Companies as projects are planned and delivered, it made sense to have project management as one of the initial communities within the program.

The systematic approach to knowledge management and the creation and transfer of best practices will drive continuous learning and lead to sustainable, world-class performance. Starting with a good idea, a good practice develops into a best practice, which leads to the best practice becoming a standard.

The Community of Project Management is composed of members from the Kuwait Petroleum Corporation (KPC) and the other K-Companies in a core team that aims to:

l Maintain and share project management knowledge that is strategic to KPC and its subsidiaries,

l Develop and validate guidelines for sharing project management best practices in the KPC and K-Company areas, and

l Build effective learning networks.

Members were approached based on their skills, knowledge, commitment, and relationship abilities. The idea is to have a wide network of people working on similar projects, who are facing the same challenges and who

can learn from one another. The community approach will also seek more effective practices as proven solutions can be used by others and duplication is avoided. It is also envisaged that the Community members will play an advisory role in the direction of future projects within the oil sector.

Although there are many possible practices that could be shared, the Community of Project Management decided to focus first on a small, but significant, practice known as the Project Risk Log. Implemented and controlled by Team Leader, Adel Al-Qattan, at the Corporate Transformation Office KNPC, the Project Risk Log is a widely-used project management tool. According to Al-Qattan, the entire culture has changed as there is now willingness, rather than an aversion, to confronting and discussing the various risks to project delivery. As a key step in mitigating risk, the log must be continually updated and communicated. “If you are really following the risk log process in the right manner, it will help you identify the potential problems and make sure that all goes smoothly

in the project,” Al-Qattan clarified. In fact, the success of the Risk Log at KNPC is the reason why it was adopted at the Kuwait Oil Tanker Company (KOTC). Previously, KOTC was using a systematic matrix approach to risk, but after seeing the advantages of the KNPC risk log, Ahmad Al-Badah, Snr. LPG Project Engineer and Risk Specialist, decided to review the practice. In addition, he can already see ways in which the Risk Log can be further improved. “In our specific projects, we need to tailor the Risk Log to our needs,” Al-Badah explained, “One of the gaps we need to tailor is related to the actions we take to reduce any of the risks to a tolerable level. These actions themselves will bring a new mitigated condition on one side and may create opportunity to bring new risks on the other side, so we need to reassess the risk of the new mitigated condition before we can say that the risk is tolerable. We will need to address that reassessment in the risk log. Also, we will include another column in the log to capture the target risk level. If we want to reduce a specific risk from level 10 to level 5, this new target should be specified in the Risk Log”.

The transfer of the Risk Log best practice offers the opportunity not only to share knowledge and good practice from one company to another, but is also an opportunity to improve the practice even further as it is applied in its new context. In addition, the success of this first transfer sets a standard for future transfers and is just the beginning to optimizing project management among the K-Companies.

Community of Project Management

Part of the Best Practice Program

Mohammad HusainDC & DMD-Planning & Gas

Background

The upcoming replacement of the Kuwait Oil Company’s (KOC’s) 2020 Strategy with a new 2030 Strategy does not make the goals of the earlier strategy obsolete, but rather lessons learned will be incorporated in the most recent strategy. In fact, the 2030 Strategy was developed not only to go further into the future than 2020, but also to move beyond just KOC to incorporate the entire upstream opera-tion of the Kuwait Petroleum Corpora-tion (KPC). This will include KOC, the Kuwait Foreign Petroleum Exploration Company (KUFPEC), the Oil Develop-ment Company (ODC), and the Kuwait Gulf Oil Company (KGOC). Obvious-ly, organizing and keeping the project on track is a challenging task, and the employment of booz&co. as a consul-tant to the project has contributed to its timely execution. Phase II of the 2030 Strategy Project looked at the cur-rent targets to determine if they were still valid and details were presented in the January - March, 2009, issue of The Kuwaiti Digest.

Phase III

The recent completion of the third and final stage of the project means that the various companies are ready for the final review, approval, and imple-mentation. Phase III itself involved the creation of a system of governance with two parts: one in each of the individual companies where strategies were developed and reviewed, and the other for the entire upstream, which included a Working Team with strate-gic planning specialists from each of the companies, and a Planning Council with representation from the Kuwait Petroleum Corporation (KPC) as well as the four companies.

The initial task in Phase III for the Working Team was to create a vision

2030 Strategy UpdateThe final steps to ‘we are one’

statement, mission statement, strategic objectives and key performance mea-sures, which were then reviewed and approved. The second task was more company-specific and involved the formation of a road map encompass-ing both core and support business for each company starting with a. where the company is today and b. where it should be in the year 2030. In order to ensure compliance and a conflict-free plan, the road maps were reviewed and possible integration, in technol-ogy transfer, for instance, was defined. It was this process of integration that sets the right framework for the entire project and emphasizes the notion that ‘we are one’.

The final task in Phase III involved the Upstream Steering Committee present-ing an entire Upstream Strategic Plan (USP), including strategic directions, to KPC. Interestingly, the new Strategic Directions have two separate compo-nents:

1. Domestic, involving KOC and KGOC, and

2. International, pertaining to both ODC and KUFPEC.

Done ahead of schedule, the USP was highly commended by Saad Al-Shuaib, KPC CEO, and serves as an example to the other K-Company areas. The USP will be reviewed by KPC to ensure that integration and synergies are highlight-ed and that projects adhere to the KPC vision and transformation. Changes will then be sent to the upstream areas for revision and the final plan will be approved by KPC.

2030 Strategic Delivery Program

In the meantime, the upstream area is proactively looking at ways to deliver the 2030 Strategy with a program called 2030 Strategic Delivery. The pro-gram, which has three stages, will take

over 3 years to implement and will involve multiple projects. The projects have already been identified and the most urgent, those that need to be completed by the end of the calen-dar year, are known as ‘Quick Ones’. These Quick Ones were identified, categorized, and prioritized during the summer months and a schedule was developed.

Timely implementation of the Quick Ones will provide the basis for the implementation of the remainder of the program, and the upstream com-panies will be on the path to reaching the goals of the 2030 Strategy.

2030 Strategy Upstream Steering Committee Members

Sami Al-Rushaid, C&MD - KOCFahed Al Ajmi, C&MD - KUFPECBader Nasser Al-Khashti - KGOCHashim Mustafa El-Rifaai - ODCWafa’a Al-Zaabi, DMD - Corporate Planning - KPC2030 Strategy Upstream Planning Council MembersAbdullay Al-Kalooti, Manager - Strategic Planning - ODCAbbas Al-Qallaf, Manager - Strategic Planning - ODC (retired)Shafiqa Mubarak, Manager - Strategic Planning - KOCShabib Al-Ajmi, Manager - Corporate Planning - KGOCGhada Al-Amer, Manager - Strategic Planning - KUFPECShaima Al-Ghunaim, Manager - Strategic Planning - KPC2030 Strategy Upstream Working Team MembersSadeq Mohammad, Team Leader - Stra-tegic Planning - KGOC (alternate: ?)Ahmed Aoufi, Specialist – KUFPEC (alternate: ?)Mohamed Al-Jadi, Specialist – ODC (alternate: ?)Bader Al-Attar, Team Leader – Strategic Planning – KOC

4 October - December 2009

With the input of the four Upstream subsidiaries, the components of the Upstream Strategic Plan were developed

An assessment of the Strengths, Weakness, Opportunities and Threats derived from lessons learnt since definition of the last strategic plan, an assessment of competitors’ positioning and KPC future energy demand scenarios and Strategic Directions

Mission: An articulation of the core purpose of the Upstream sector with description of where, for who and how it will deliver itVision: A definition of the future positioning of the Upstream sector and the strategic objectives required to reach that position

An evaluation of the available options to deliver on the KPC Strategic DirectionsIncludes both the core business strategic options and the strategic change program required to manage risks and support the delivery of it

A detailed implementation plan showing the activities, timing and requirements of core business and supporting functions to deliver the strategic objectives and, therefore, the Upstream vision and KPC Strategic Directions

An assessment of critical requirements that must be in place to enable successful execution of the roadmapKey Success Factors are defined by subsidiary and an aggregated Upstream view is also provided

A description set of 8 objectives required to deliver on the Vision statement from the current known strengths and weaknessesA supporting set of proposed Key Performance Measures that will enable the Upstream sector to track progress towards the vision quantitatively

Mission and Vision Statements Situation Analysis Strategic Objectives and KPMs

Key Success Factors

Roadmap

Strategic Options Selection

Strategic Plan Overview

The Upstream Mission and Vision provide clear statements of purpose and direction for the sector as a whole and are aligned to KPC

To explore, develop and produce hydrocarbons…

We Will DeliverOur Mission…

KPC UpstreamMission

KPC Upstream Mission & Vision Statements

…within the State of Kuwait, the Divided Zone and internationally…

…and so be a secure and reliable supplier to our customers, promote the care and development of our people and deliver on our commitments to our stakeholders…

…in a compliant, profitable, safe and environmentally responsible manner.

To achieve a leading global position in Upstream Oil & Gas as an integrated, value-driven enterprise, by:

We Will DeliverOur Vision by…

KPC UpstreamVision

• Maximizing the strategic value from oil• Realizing the potential of gas• Growing reserves for a sustainable future• Being an employer of choice• Realizing value from technology• Strengthening our commitment to HSSE• Striving for excellence in performance,

and• Contributing to the Enterprise and State

Key Performance Measures quantify and track progress towards delivering the 2030 Strategic Objectives

Strategic Objective KPMs

Core Business

Maximize the Strategic Value from Oil

Production Capacity (domestic oil bopd by stream / international boepd)

Realize the Potential of Gas

NA Gas Production Capacity (scfpd)NA Gas Production (scfpd)Gas Flaring (%)

Assoc. Gas Production Capacity (scfpd)Assoc. Gas Production (scfpd)

Grow Reserves for a Sustainable Future

Reserves Additions from exploration or acquisition (On-shore, Offshore and International)RRR by source (boe+%, 3-yr Avg.): Existing & New Reservoirs

Strategic Functions

Be an Employer of Choice

Best Company to work for RankingAverage training hours per employee (#)Return / Impact of TrainingEmployee Morale & Satisfaction (survey) Establishment Vacancies (%)

Additional capacity for growth by functionSuccession Planning Bench Strength (%)Employee turnover (%)Average Days to fill established vacancy (#)

Realize Value fromTechnology

Upstream R&D spend (KD & % of revenue) Opportunities generated by source (#): Research, KUFPEC and other

Opportunities agreed by customer (#)Value added from Technology (NPV KD)

Strengthen our Commitment to HSSE

HSSE training compliance (%)HSSE audits conducted (#)HSSE Critical Performance output

Enablers

Strive for Excellence in Performance

Off track KPM w/o Corrective Initiatives (%)Operating Cost (fils / boe)“Intrinsic Business Value Growth” (%)Operated Volume (%)

“Organization performance¨ (fils / unit)Finding & Development Cost (fils / boe)Cost of Risk (fils / boe)

Contribute to Enterprise & State

OPEX spent locally (%)Sponsorship and Charity Spending (KD)Kuwaiti in contractors (%)Upstream KPC initiatives completed (%)

CAPEX spent locally (%)Kuwaiti in workforce (%)Resources committed to KPC initiatives (#)

2030 Upstream Strategic Objectives & KPMs

Notes: Bold indicates KPMs historically reported to KPC in the “Progress Report on Implementing KPC’s Strategic Directions”Core business KPMs are defined by Upstream, Strategic Functions and Enablers are to be confirmed in collaboration with KPC Functional AreasFurther commentary on the process, structure and content of the KPMs are available in Appendix 1


The importance of the internal audit

An internal audit in the ISO9001:2008 project refers to the auditing process that is done by employees of the Company, ie. internal auditors. An internal audit, as with an external audit, is done to ensure that conformance to the referenced standards exist, that there is effective in-teraction between the different elements of the system, and to assure that there is commitment to the system.

In the ISO9001:2008 process at the Kuwait Oil Company (KOC), the audit is performed every 6 months by eight teams, with the most recent audit being completed at the end of May, 2009. The purpose is to ensure that the require-ments of the ISO9001:2008 Standard are being established and maintained; regu-lar audits are one of the prerequisites for obtaining and keeping ISO certification.

In order to prepare for the internal audit, select employees, who do not have an accounting background, were given three days of training concentrating on:

l the requirements of ISO9001:2008,

l the benefits of quality assurance systems and the need for proper docu-mentation,

l the principles and methods of the internal audit,

l how to prepare for, carry out, and

lead an audit, and

l how to evaluate the data and report the findings.

The importance of the internal audit of Upper Management

Managing a large company, such as KOC, is not an easy task and having an understanding of how operations are linked in interactive processes is essential in the allocation of resources. As such, discussions with the internal auditors brings possible conflicts and non-conformities in daily operations to the attention of Upper Management, which is essential for any future decision making. In addition, the internal audit gives the ISO project team members an idea of how well upper management is committed to, and understands, the ISO requirements, as well as which areas still need to be addressed to ensure full compliance.

The benefits to KOC

The ISO9001:2008 certification is a sign that the Company is committed to the international standards. Although rec-ognition is desirable, what is really im-portant is that the process is established and adhered to. Following international standards allows KOC to manage its business in a more efficient and effective manner, and the existence of set ways of doing daily business will mean that

knowledge and information will remain in the Company and be available to all. In essence, the process of attaining the certification is also a way of changing the mindset as well as the way of doing business throughout the entire Compa-ny, from top management down.

The benefits to the Auditor

The old adage that knowledge is power applies to the audit process as under-standing the procedures within the different areas of the Company gives the individual Auditor a more compre-hensive perspective. In addition, the preparation training gives the Auditor additional skills in auditing techniques, interviewing, teamwork, and effective communication.

ISO9001:2008 Quality Management System

Internal Audit of Upper Management

List of KOC Internal Auditors

Abdel Fattah YoussefAbdul-Salam MalikAfrah RamdanAnupam RajkhowaFerry BalelangKurji Al-MunirMaha Al-BaghliMohd. A. Shehab SalehNadia Khaled Al-ZeabotNaser MalallahShivkumar GopalakrishnanSubhash Sitaram DagaWaleed Ahmed Majeed Al-GhareebYousef Al-Zuabi



KPC CEO, Saad Al-Shuwaib inaugurates the new website

Bodoor Omar receives thank you gift from Saad Al-Shuwaib Mishaal Eid is rewarded by Saad Al-Shuwaib

word. The site can be reached under www.kog.com.kw. Upon entering the site, the user will be directed to input his/her ID and password and will then be directed to a screen that is self explanatory. Once in the site, the user has access to both company, national, and international oil related news, as well as local Kuwait news.

Advantages

The obvious advantages to the system are increased communication and information sharing among the K-Companies. Therefore, all employees are encouraged to access the site on a regular basis in order to be informed as to events and activities taking place in the entire sector.

The Kuwait Oil GateIntegrating communication among the

K-CompaniesBackground

The concept for a Kuwait Oil Gate (KOG), whereby the various K-Com-panies can access an internal, com-mon web portal to retrieve announce-ments and events, was a Kuwait Petroleum Corporation (KPC) initia-tive and directive. Started in August of 2008, the project has been running for over one year, during which time the various companies’ information areas were responsible for updating their information and making it avail-able to all. In addition, systems were put in place to automatically link vari-ous information sources.

How it works

Accessing the gate is easy for any em-ployee with a valid user ID and pass-

In August of 2009, employees from the various K-Companies involved in KOG were recognized in a ceremony which took place at KPC. Representing the Kuwait Oil Com-pany (KOC) were Ahmad Marafi, Chief Public

Relations Officer; Bodoor Omar, Multi-media

Officer; and Mishaal Eid, Internet Developer.

At the same time, KPC announced the inau-

guration of its new corporate website.

Employees Rewarded for Their Efforts in KOG

The electronic work permit was intro-duced in the July, 2008, issue of The Ku-waiti Digest when North Kuwait’s Booster Station 131 was chosen as the location for a pilot project. The success of this initial pilot led to the system being used in other isolated parts of the Kuwait Oil Company and a campaign from June 7th – August 7th, 2009, introduced the system Compa-ny-wide.

The Kuwaiti Digest was able to speak with some of the key people involved in the project and campaign including Ahmed Abbas, Team Leader-Health, Safety & Environment Systems; Faris Al-Mansouri, Team Leader – Safety; Ali Al-Failakawi, Senior Safety Engineer; Saleh Al-Harbi, Senior Safety Engineer; Ahmad Hajieh Hasan, Senior Systems Analyst; and Ameer Baroon, Senior Programmer. Also involved in the project were Lina Dalloul, Market-ing Consultant, and Layali Al-Khalifa, PM Trainee.

The eWP is a web-based solution that can be accessed through the KOC intranet. Replacing the old paper system, the new

electronic system allows for permits to be produced quickly and accurately ac-cording to KOC’s HSEMS procedures. In addition, the new system helps identify potential hazards and provides informa-tion on which preventive and protective measures should be taken. In the end, the increased efficiency and convenience of the system leads ultimately to a safer and healthier working environment.

The new system was initiated in order to reduce the amount of paper work, lost documents, errors, and delays. The new centralized database allows for easy access, reduced physical storage space, increased accuracy, ease of information gathering for both auditing and insurance purposes, and prevention of duplication of work. In addition to the electronic work permit, users will also be able to access other relevant documents including maps of the area and excavation plans. The system is secure through the use of user IDs and passwords. Although hard copies of the work permit are still being printed, the plan is to have hand-held notebooks where data can be inputted, transmit-

ted, accessed and updated automatically, thereby eliminating the need for any paper copies. The security of the system prohibits making unauthorized amend-ments to the permit, once it has been issued. In case of dispute or accident, the investigators can use the software manage-ment tools to conduct a full verification and identify the probable causes in the permit to work process and take appropri-ate preventive actions accordingly.

Finally, the electronic version of the work permit allows senior management to track individual, as well as collective, work in progress. As records for all issued permits can be retrieved in seconds, audits and checks on the safety requirements can be carried out anytime and anywhere. All these features in the electronic work per-mit system help in the implementation of KOC’s HSE Management System, thereby improving overall HSE performance. All efforts have been made to keep the sys-tem simple, convenient and user friendly, keeping in view the roles & responsibili-ties of personnel associated with permit to work.

Project CampaignMoving from the test phase to Go-Live

Front row from left to right: Ahmad Abbas, Team Leader-HSE System; Faris Al-Mansouri, Team Leader-Safety; Ali Al-Failakawi, Senior Safety Engineer; Saleh Al-Harbi, Senior Safety EngineerBack row from left to right: Ahmad Hajieh Hasan, Senior Systems Analyst; Ameer Baroon, Senior Programmer; Lina Dalloul, Marketing Consultant; Layali Al-Khalifa, PM Trainee



Carbon Trading and the Oil & Gas Industry

What is Carbon Trading?

Carbon Trading is an approach designed by economists and politicians to reduce the amount of carbon dioxide (CO2) in the environment through incentives and various measures. Still in the experimental stage, it is being evaluated by society to see if it makes sense, not only in terms of reducing the amount of CO2, but also in avoiding accelerated or excessive global warming. Differing views versus economic prosperity are being taken by the vari-ous countries around the globe, and this demands careful examination.

I would like to stress that Carbon Trading is only one measure out of many that may help; measures designed by scientists and engineers are more direct, and require support, as they will more likely provide the true physical results we are trying to achieve, especially when coupled with Carbon Trading.

Natural versus human impact on CO2 levels

CO2 has often been called a pollutant, however, it is a natural component of the atmosphere and is a vital part of the life cycle. Also, it is perfectly normal when going from a glacial phase to an intergla-cial phase, as the earth warms up, for CO2 levels to rise. In geological history before the time of human beings, the CO2 levels moved back and forth from ca. 180 parts per million to ca. 320 ppm in the lower atmosphere.

It is important to note that when the earth is warming up, there is 50 times as much CO2 in the oceans as there is in the atmosphere, and as the oceans warm, a large amount of CO2 is released. Addition-ally, a warmer climate is more conducive

to supporting both plant and animal life. Just think of the size and plentitude of plants and animals from previous inter-glacial epochs, such as dinosaurs and the huge plants, etc. which inhabited the earth and eventually formed the oil we exploit today! So, given the fact that we entered an interglacial period over 11,000 years ago, it is to be expected that the CO2 levels will have returned to the 320 ppm level and above (we have only exceeded this level recently by ca. 60 to 80 ppm, ca. 15-20%).

Interestingly, it has been observed that polar ice transgressions and regressions have been matched with those on Mars, where there are no anthropogenic emis-sions. Planetary cycles, i.e. obliquity, precession, eccentricity, their relative positions, and solar surface activity ac-count for more than 95% of meteorologi-cal phenomena, and their variations. It is important to note that Mars passed by its closest point to the earth in the last 60,000 years in 2003. Also, consider some of the following “not so” wide-spread facts regarding CO2 production:

l From naval submarine operational data, we know that one man produces 1Kg of CO2 per day,

l The population of the earth has increased from 1 billion to 6 billion since the indus-trial revolution, which means we now have 5 billion kilos of CO2 more to account for, everyday of the year (x 365.25), bringing the yearly total to ca. 1.700 trillion kilos of CO2! Imagine in just a few years time when we have reached 10 billion individuals!

Submitted by: Garry Kolafa, Consultant, E & P Information Management Team, Research & Technology Group

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

1997

1998

1999

2000

2001

Year

2002

2003

2004

2005

2006

Total annual CO2 emission in Tonnes/106 barrel of crude produced

The Downward Trend is identifiable, the highs are due to new field additions and unexpected changes in GORs.

Garry KolafaConsultant, E&P Information Team


l This is the direct human impact. Early publications concerning global warm-ing rarely included this factor, and only pointed to indirect estimates derived from industrial output, or livestock, in equiva-lent units.

l Many scientists have noted the weak-nesses in the IPCC models and have aimed their studies elsewhere.

Back to the Antarctic Ozone Hole

Many scientists blamed the Ozone Hole, or ozone depletion, on chloro-fluoro-car-bons (CFCs), and the Montreal protocol subsequently called for the discontinu-ation of products rich in CFCs, such as aerosols, and other similar products such as refrigerants, etc. However, few spoke of the numerous nuclear blasts in the South Pacific as the true piercing mecha-nism of the upper atmosphere and the carrier of heavy molecules to the height of 20-50 kms, in the southern hemisphere. CFCs are mainly produced in the northern hemisphere and are heavy molecules, unlikely to win the climb over gravity to such altitudes, and even if they did, their presence would be short lived. So even though their contribution to ozone deple-tion was not trivial, and has even been tempered, the true extent of damage was more likely due to nuclear testing.

One important question in terms of the ozone layer is the impact that ozone has on the oceans as a “carbon sink”. According to researchers from three labo-ratories attached to well-known, inter-national institutions, their recent studies

show that ozone plays a significant role; using original simulations, they have demonstrated that the hole in the ozone layer reduces atmospheric carbon uptake in the Southern Ocean and contributes to the increase in ocean acidity. These results, which are published online in the journal Geophysical Research Letters, should have a considerable impact on future models of the IPCC, which, for the moment, do not take this ozone model-ing into account!

By absorbing almost 15% of anthropo-genic carbon released every year, the Southern Ocean is one of the main sinks for atmospheric CO2; between 1987 and 2004, about 2.3 billion tons of carbon was not taken up by the oceans. This corresponds to a relative reduction of nearly 10% of the global oceanic carbon uptake, which is extremely significant in the carbon balance.

Why does the carbon finance indus-try need to engage with the world’s oil companies?

The Oil and Gas industry has many people, geoscientists and specialized engineers, who have the right kind of knowledge and experience to deal with the problems of what to do with green-house gases (GHGs), and other types of gases, which may be considered toxic or pollutants. In particular, it has unique know-how and technologies in enabling several alternative energy sources, and also has the requirements to use them; after all, it takes a great deal of energy to produce energy. It is exactly these new unique technologies that allow us to do things we were never capable of doing in the past, for example, directional drilling, multilateral drilling, etc. These will be key technologies in developing geothermal energy, and in reaching pro-duction and storage targets in the future. Furthermore, the industry can identify and select safe natural storage locations for GHGs, and can manage them over time commercially. Most importantly, the oil and gas companies have some of the most effective sequestration technologies

available, and have long been active in dealing with excess CO2 (several GHGs have long been used in Enhanced Oil Recovery).

Research and Development needs to be shared across many disciplines to come up with viable solutions, and although the Oil and Gas Industry has many technologies, we must go beyond the conventional divisions of industries, and combine and bridge with other industries such as the Space Agencies, IT industries, Material Science and Nanotechnology Science, to combine resources to provide safe and clean solutions for the future. The Oil and Gas Industry has long ben-efited from multi-disciplinary collabora-tion and recognizes that synergy may also be achieved with other industries in overcoming environmental issues with combined resources.

Kuwait Oil Company’s current involvement in GHG emissions reduction

Kuwait which has one of the largest car-bon footprints signed the Kyoto Protocol. It is not that the country is a conscien-tious abuser, but rather that the country, which only at 17,820 km² is small in com-parison with other countries, produces 3-4% of the world’s oil. For this reason, it is easy to see that carbon footprints may not be a fair way to base trading.

In addition, the Kuwaiti oil sector has invested 561 million Kuwaiti dinars (1.87 billion US dollars) between 2004 and 2007 in environmental protection projects to limit refinery emissions. This has been quite successful, and a study showing the results is published in the American Jour-nal of Environmental Sciences 4(1):31-38,2008 by Khaireyah Kh. Al-Hamad of KOC’s R&T group and A.R. Khan of KISR. Diminishing trends in the refineries are obvious, and a non-CO2 centric approach has been taken, so as to account for true toxins and pollutants. Total emission fig-ures (Kuwait-wide) fluctuate due to vary-ing GORs in certain reservoirs, and the uncovering of new reservoirs, some of which are pure gas. Kuwait is committed


to environmental protection and has been recovering from some of the most damag-ing environmental events in history. His Excellency the Emir, Sabah IV Al-Ahmad Al-Jaber Al-Sabah, recently announced additional commitments and measures to help protect coral reefs and marine life in the Al-Khaleej (Arabian Gulf).

How can Carbon Trading be accom-plished?

If we take Carbon Trading as one of many measures to control CO2 emis-sions, how exactly would it work? If a market for Carbon Trading is estab-lished then a fair taxation and/or fair rewards system, necessarily flexible, must be implemented. The most dif-ficult points in establishing this type of market is quantifying the degree of al-lowable flexibility, how to tax fairly, or even to tax at all, and perhaps substi-tute taxation with rewards. For this, the true viability of supply versus demand, must be understood and modeled.

Another key nerve point is enforcement of generated policies that have been formulated to exercise the above; the overall impact of these activities are seen as critical. Instrumental to achiev-ing these goals, is an extensive informa-tion management system, and this is a point that has been realized by KNPC and KOC in their endeavors and their relationship with the public.

Finally, other significant measures need to go along in parallel, such as man-aging the ozone layer, increasing and making nuclear energy safer, guiding solar and wind energy to their niche markets, and increasing vegetation and oceanic phytoplankton sinks to help balance CO2 emissions.

I am aiming to present a very bold new suggestion at the World Carbon Confer-ence ’09 Beijing, October 13th-16th, 2009, and I am hoping it will be well received and acted upon by my fellow distinguished participants. Like no other time in the history of mankind are we in a better position to take and imple-

ment measures to correct imbalances,

improve safety, such as parallelizing

nuclear power, similarly to what was

seen in HPC, to manage power and

safety synchronously, and allow alterna-

tive energies to develop off the back of

these high capacity hydrocarbon and

nuclear power sources.

Conclusion

Carbon Trading is a step in the right

direction, but its overall effective-

ness and results may not produce the

desired level of results truly required.

It is vulnerable to abuse, as we have

seen in early European initiatives.

Investment and effort may be placed in

other measures which are more physi-

cally connected to balancing the CO2

relationships in nature. Having said that

Carbon Trading does have the chance

to give structure and backbone to a

wide range of projects, which could

possibly, otherwise not be managed at

a global level.

Challenges and Opportunities of Carbon Trading and the Oil and Gas Industry

Challenges

l Coping with a complex environment

l Addressing sustainability issues, meeting future demand,

l Complying with regulatory and reporting requirements

l Improving performance and operational effectiveness (managing decline)

l Industry transactions and consolidation

l Managing financial risk, maintaining and increasing investment levels.

l Managing geopolitical risk

l Dealing with unreasonable taxation and legal structures that kill incentives and initiatives

l Recruiting and retaining a skilled workforce

l Securing the supply-Sustainability

l Allowing alternatives to find their respective niches and allowing changes in infrastructure to take place

l Accommodating the inevitable fundamental shift of production from lighter to heavier crudes, to heavy oil, tar sands, and coal

l Saving hydrocarbons for better things than fuel!

Opportunities (using what we have left wisely and support):

l Nuclear Energy

l Geothermal Energy

l Hydrogen Combustion & Nanotechnologies

l Hydrogen Fuel Cells & other Electric Solutions

l Desalination and Electrolysis of Water

l Water and Steam Management

l Solar, Wind, Chemical Energy, Thermodynamics etc.

l Cleaner and Safer Operations

The achievements of the Maintenance (EK) Team’s work on KOC’s oil recov-ery system are impressive. In 2007, the Team not only took over the running of the oil recovery plant from the previous external contractor, Finsco, but also introduced many alterations which helped to greatly increase the plant’s productivity. One member of the Team also invented an ingenious and resourceful oil-heating system for the project, the first of its kind in the world. It creates what is in effect, a giant heating element (as used in a kettle) in order to prevent the oil from becoming sluggish, viscous and diffi-cult to pump during colder weather, in order not to hold up pumping during the winter season.

Mohammed Al-Rasheedi, the Mainte-nance Team Leader EK, explained that the Team had overcome a number of challenges in taking over from the previous contractor. “Even with all the challenges and manpower shortages, with our experience of dealing with this treatment, we took the initiative to run and maintain this oil recovery plant,” he told the Kuwaiti Digest. “We used our own resources, not those from outside. Not only that, we’ve made a lot of modifications to the

Impressive Achievements –and a world first – from KOC’s Oil Recovery Team

plant in terms of safety, the environ-ment, the plant itself – additional alarms to increase safety, equipment to increase indication, and an increase in the general reliability of the plant,” which he adds, “is now in excellent condition.”

500,000+ barrels to be recovered within the next year

The quantities of oil being recovered are considerable, with over two mil-lion barrels in the Wara pit alone, and more (though in far smaller quanti-ties) in other pits elsewhere. Another pit near GC-20, now entirely emptied, contained 190,000 barrels of crude before the Team recovered it.

“As of March 31st, 2009, we have recovered 400,000 barrels of Wara

Crude from our oil recovery plant,” Al-Rasheedi explained. “What we expect to complete for this year is more than 500,000 barrels.”

So where did the oil being recovered originate from and go to? “The bulk of the oil – 90.99 percent - came from the 1990 invasion,” Al-Rasheedi explains. This came about when the Iraqi army, during its retreat from Kuwait in 1991, set 789 oil wells on fire, as well as purposefully pumping an estimated 250 million gallons of oil into the Arabian Gulf, devastating the local land and marine environment for some time thereafter.

This is the major source, but not the only one, as Al-Rasheedi points out, “Also, it comes from oil spills in the area; when you have a survey in the GC, oil recovered from oil wells,

Mohammad Al-RasheediMaintenance Team Leader-EK


the flushing of lines and flushing of separators, there are various elements. This is collected into on-site pits then sent to tanks inside the plant, then after mixing with some chemicals, it’s sent to the oil-gathering centers to as-sess the quality, then processed.” The initiative to recover the oil is relatively recent, he adds, “Before this, the oil wasn’t treated, wasn’t used, it was just dumped in pits and stayed there for who knows how long.”

Major changes

Prior to the Maintenance Team taking over the running of the plant, the elec-tricity supply was provided by some-what unreliable sandbank generators, with no supply at all at night, meaning in effect that operations could only be carried out in daylight hours.

The Team changed this. “We managed to lay a 1.5-kilometre power cable from one of the existing transform-ers to the plant, so now we have a steady supply, which gives us stability for running the plant,” Al-Rasheedi explained. “We’ve put lighting all around the plant, enabling us to work on a 24-hour basis. Before the control room was outside, we hadn’t made the lighting, done these modifications, etc.”

The plant is currently producing and dispatching to two locations, but the Team plans to increase this to three in the near future. “The plant is running now at a production level of about 3,500 barrels of Wara Crude per day,” Al-Rasheedi continued. “This crude is currently dispatched to two locations, GC-19 and Wara Mini Hope. Our plan is to dispatch to GC-11 and we are in the process of laying two pipelines from the oil recovery plant to that cen-ter, which is three kilometers away. This will be done by a Maintenance East Team without any outside re-sources, using our own resources.” As he explains, this new line will greatly increase production levels. “With this new production line to GC-11, we ex-pect our daily production to be 5,500 barrels per day,” an increase of over a

One of many oil pits on KOC land

Pumping oil into the transport trucks

third on the current level, helping in KOC’s plan to raise its recovery rate from 40 percent to 60 percent of the total as part of its 2020 Strategy.

The extent of the Team’s modifications to the plant is exhaustive. Not only did they carry out all the work listed above, but also add a new internal control room, replacing the previous external one and allowing a great deal more work to be carried out on site. They also carried out numerous other alterations, “We’ve added a fire hy-drant to increase safety,” Al-Rasheedi says. “We’ve also made a ring fence on all sides of the plant. We’ve modi-fied the tank level indications and dispatch indications to ensure the dispatch quantity from our plant.”

Ensuring the quality of the oil recov-ered is a vitally important factor in the plant’s work, he explains: “Part of our assurance of the quality of the oil going to the GCs and Wara Mini Hope is that we submit daily samples to the lab to ensure that all the parameters match the necessary crude quality lev-els.” The Team’s ability to assess qual-ity onsite has been greatly enhanced and accelerated by its construction of the new control center where the work is carried out (the work was

previously carried out offsite).

Saving the environment

The environmental aspects of the oil recovery project are uppermost in the Team’s considerations. “It is mainly an environmental project,” Al-Rasheedi continues. “Helping the environment is the most important factor for us. The quantity of oil being recovered compared to the amounts being pro-duced is very small – but we are help-ing to save the Kuwaiti environment by doing this.”



Record Achievement for KOC Drilling10 years of no LTA

Time lost at work due to an injury for a day or more, known as Lost Time Accident (LTA) or Lost Time Incident (LTI) or Industrial Disabling Injury (IDI), is common in the oil industry, particularly with the hazardous rig operations. In fact, according to the International Association of Drilling Contractors (IADC), of the approximately 4,700 drilling rigs of all types currently operating worldwide, only a very few have gone four years or more with no LTAs (refer to chart). The Company record achievement on July 6th, 2009, of 10 years of operation with no LTA is, therefore, quite a remarkable accomplishment. Rig-3, operated by the United Precision Drilling Company (UPDC), supervised by the Deep Drilling Group, sets the standards

for the other rigs; the attention that the management of the rig has paid to proper operation and corresponding HSE rules and practices is the main reason for this outstanding record and serves as an example to other rigs.

There are many reasons why achieving 10 years of accident free drilling operations is so difficult, but the main reason for success is how well the rig floor is managed. Part of proper management means following all the required HSE precautions, deploying competent staff, providing HSE training to staff, complying with procedures and standards, and recognizing, reporting, and dealing with near misses in order to avoid escalation to accidents and/or fatalities (refer to graph). This is particularly important in the drilling area where dangers such as toxic gases and chemicals, high pressure, working at heights, and the demanding 28 day on – 28 day

off work schedule, makes for a challenging environment. The “We Care” approach adopted by KOC, with its focus on HSE issues, is proof that commitment does indeed work and results in lower numbers of incidents.

The Kuwaiti Digest was able to speak with three of the main Kuwait Oil Company (KOC) officials connected with the record achievement; according to Mohammed Jasem Al-Saeedi, Manager – Deep Drilling, “The secret of this achievement lies in strong commitment to implement high standards of HSE at all

Number of years without LTA

4

5

6

7

8

10

11

12

13

14

15

16

17

18

Number of rigs world-wide that have achieved

this landmark

5

6

6

2

1

13

8

3

3

3

2

1

1

1Approx. number of rigs operating

worldwide: 4,700Source: IADC unofficial statistics

1

FATAL30

MAJORS(Disabling Accidents)

301RECORDABLE ACCIDENTS

(Off Work, limited work and no lost time)

3,000NEAR MISSES OR FIRST AID

30,100 HAZARDSUnsafe acts - Unsafe conditions

Mohammad Jasim Al-SaeediManager-Deep Drilling

Heinrich Triangle


United Precision

Drilling Company

United Precision Drilling Compa-

ny (UPDC) was established under

the shared ownership of United

Oil Projects (35%), United Indus-

tries Company (12.5%), Geotech

(5%) and Precision Drilling Inter-

national (47.5%).

Its main objective is building the

largest, most technically advanced

and most highly regarded contract

drilling organization in Kuwait.

Situated in the heart of Kuwait’s

oil region in Al-Ahmadi, UPDC

services oil and gas wells on

a contract basis. Main clients

include the Kuwait Oil Company

plus other international oil com-

panies.

UPDC key facts:

Operates mainly within the

onshore and offshore territories

of the state of Kuwait and the

Kuwait Saudi Arabia partitioned

neutral zone.

Operates 8 drilling rigs with

Kuwait Oil Company and one rig

with the Joint Operations. (does

not own rigs as previously stated)

Aims to expand its operations to

include additional rigs and com-

prehensive drilling services.

Entered management contracts

with Precision Drilling Interna-

tional for the management of its

daily operations.

Partners with Weatherford Interna-

tional, a trusted global provider of

drilling technology and services.

Source: UOPKT.com

levels - management through

workforce – in a consistent

manner. I tribute the expertise

of the team which made this

possible. KOC is expanding

its drilling activities to meet

undoubtedly should inspire other

rigs to work towards achieving

such milestones and many

more”. Hamad Al-Kandari, Team

Leader – HSE expressed , “This

is a remarkable achievement by

production targets with the lease of new rigs, and proper management, particularly when it comes to safety, is key”. Bader Al-Khayat, Team Leader – Deep Drilling & Workover Exploration was also quick to praise the work done by all involved, “this would not have been possible without the high level of HSE commitment from each and everyone contributed in the achievement. I wish many milestones of this nature in all our operations and this

the Rig and the Group. I wish them to remain committed to the ‘We Care’ approach and to spread the message across the entire Directorate to achieve an incident free work environment on all the rigs and operations”.

The hope now is that this achievement will serve as a challenge to other rigs and that Rig-3 will continue to operate accident-free, breaking new Company, and perhaps even international, records.

Bader Al-KhayatTeam Leader-Deep Drilling & WE

Hamad Al-KandariTeam Leader-HSE

The team at Rig-3


Nobody can underestimate the importance of crude oil to the contemporary world. As the basis of the world’s first trillion-dollar industry and the principal item in the balance of payment and exchange between nations, it is central to every area of modern existence, politics, economics and every facet of our everyday lives, from transport to electricity generation. The world currently consumes 85 million barrels of oil per day, or around 40,000 gallons per second. In a very real sense, oil powers all our lives. To get some idea of its truly crucial significance, one need only imagine a world without it, as the factories, transportation systems, power grids and everything else grind to a halt.

To Kuwait, of course, crude oil has an extra and crucial importance, accounting for roughly 90 percent of total export earnings, 95 percent of government income and nearly half of its GDP. Indeed, it is the lifeblood of all 12 member-nations of the Organization of Petroleum Exporting Countries (OPEC) – Kuwait, Saudi Arabia, the United Arab Emirates, Iraq, Iran, Qatar, Libya, Algeria, Angola, Nigeria, Ecuador and Venezuela - which between them produce 40% of the world’s oil supply and hold three-quarters of its proven reserves. Correctly assessing the point at which the oil production peak, or Peak Oil, is reached, after which the production rate will enter terminal decline, is therefore, evidently of crucial concern for all the OPEC members, for whom oil revenue is their lifeblood as the

main feeding stream of each of their gross national product (GNP) figures. Indeed, given oil’s central nature in all our lives, it is vitally important to us all.

A new predictive model

I, along with colleagues Saud Al-Fattah of Saudi Aramco and Ibrahim Sami Nashawi and Adel Malallah of Kuwait University, have been focusing on this subject. Working together, we have now come up with a new, predictive model for Peak Oil forecasting, which we believe could be widely used, as an additional feature to the currently-used models to more accurately forecast peak production. Indeed, we are confident that this new model could help in overcoming the shortcomings of the current single production-cycle models by using a multi-cyclic model, and have published and presented our findings, most notable last March at the MEOS 2009 in Bahrain.

Using the model, the current OPEC forecast for ultimate oil recovery is about 1.137 trillion barrels. Of this

amount, about 0.9117 trillion barrels remain to be produced by the end of 2080, while the peak is currently expected to be reached in 2025, given a production rate of 90 million barrels per day. Furthermore, we predict that most OPEC countries will peak between 2020 and 2030, and will remain the world’s main supplier of crude oil for the next 200 years.

Challenging complexities of forecasting

The main objective of the model is to forecast OPEC future production for the years beyond 2050; the forecasting for crude oil is a very crucial topic and it’s a very challenging area. There are so many factors to take into consideration – political issues for example, especially if you’re talking about the reserves – ‘This country will reach this peak in so-and-so,’ which will affect political factors. We’d like to forecast the OPEC futures for crude oil beyond 2050 – which will determine the peak production for each country, its ultimate recovery and future recovery of oil.

The most widely used model at present for predicting Peak Oil and the one used by OPEC, amongst other bodies, was created by renowned American geoscientist, M. King Hubbert, and bears his name, being known as the Hubbert Peak Theory. It is based on the observation that the amount of oil under the ground in any region is finite, therefore the rate of discovery, which initially increases quickly,

A Simpler, More Accurate Peak Oil Prediction Model

Submitted by: Mohammad Al-Bishara, KOC Petroleum Engineer

Mohammad Al-BisharaPetroleum Engineer


must reach a maximum after which it will decline. Hubbert’s concept was built on applying some functions with one production cycle, meaning that each country’s production starts from zero and increases until it reaches maximum production then starts to decline. His concept was based on only one production cycle, and he carried out one forecast for the lower US States in the mid-50s, with his model showing that oil production in the US would reach the maximum production level between 1965 and 1970. At that time, many people said it couldn’t be right, but history proved that it was correct. US production did decline after 1970 and his model became very popular after this.

Flaws in the Hubbert model

I have great respect for Hubbert’s far-sighted and, at the time, revolutionary approach to forecasting and the new model in no way detracts from the Hubbert one, rather it provides an additional forecasting tool by creating a multi-cyclic version of the Hubbert model, which helps to remedy its weaknesses. We have found some shortcomings in Mr. Hubbert’s model, mainly that his concept used only one production cycle, which in a massive oil-producing country doesn’t match. The production has to be measured differently because examining production will show you that it has so many fluctuations, going up or down, so his model didn’t fit these production histories and these fluctuations based on a large number of factors. For example, exploration technology changes from one year to the next. Production history, proven reserves, economic and political factors, etc. affect production increases and declines anywhere.

Indeed, Hubbert’s model has come in for similar criticism from other sources, with Cambridge

Research Energy Associates (CERA) noting in a 2006 report that his “methodology falls down because it does not consider likely resource growth, application of new technology, basic commercial factors, or the impact of geopolitics on production.” Economist Michael Lynch, meanwhile, has argued that it is overly simplistic and economist and historian Edward Luttwak has claimed that unrest in nations such as Iran, Iraq and Russia has led to a massive underestimate of oil reserves.

A new approach

It is clear from these criticisms that a new approach to Peak Oil prediction taking this diverse range of factors into account was required. Our model takes a new approach to forecasting, considering these complex and ever-changing factors in order to create a new, ingeniously thorough yet simple to use multi-cyclic model that can be used for more accurately forecasting peak oil production. One of the important changes to the Hubbert model is the multi-cyclic approach, which allows for the incorporation of historic data; it is critically important to include historic data in predicting any future production patterns or peaks, otherwise the model will give you inaccurate forecasting. So fitting data is extremely important.

Also, given the fast-moving nature of the modern world and the speed at which external events, the introduction of new technology, and various other factors can lead to amendments in previous measurements or change production rates, it’s important to have an easily revisable model, which is one of the great advantages of this new model.

New model successfully tested

We have already used the new model successfully in predicting oil production rates in a number of nations. Also, we did some matches with the Hubbert model, including all the different factors in our data and found that ours was consistently more accurate. For example, the forecast prediction for Kuwait (refer to graph), shows the actual production up to year 2007 is 899.36 MM bbl/year, where the cumulative production is 38.641 B blls. This forecasting model shows that the peak production will be at 2037 with production rate of 5.48 MM bbl/day and the ultimate recovery will be 139.6 B bbls. The Hubbert model could not match this.

I am confident about the prospects for the new multi-cyclic forecasting model, even though the Hubbert model will continue to be the dominant one, our model will help in forecasting more simply and more accurately.

0

1

2

3

4

5

6

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Year

0

20

40

60

80

100

120

140

160

Actual RateModel Rate

Actual Cum.Model Cum.Peak in 2037 with q=5.48 MM bbls/d UR= 139.6 B bbls


Summary

For the first time in the Middle East, Schlumberger’s innovative ‘Dual Concentric ESP Technology’ was successfully implemented by the Kuwait Oil Company (KOC) in April of 2009, in well RA#186 in North Kuwait. The technology allows for the concurrent production of two independent zones having different reservoir and production charac-teristics, by drilling only one well, thereby saving on drilling costs.

Production tests carried out for Well RA#186 in 2008 and 2009 show encouraging results; at present, both ESPs are operating and the total oil flow rate is 3,601 BPD, with no water production. Given the present production rate, the pay-back period of the pilot works out to be less than one month, and this success has paved the way for KOC to implement the technology in large-scale field applications. Also, the pilot has been an example of successful teamwork and involved active participation from:

l FD RA - NK Team l Artificial Lift Team, Well Sur-

veillance l Drilling & Work-over Technical

Services - I Team

l Development Drilling Engineering

Teaml Development Drilling & Work-

over Team - I l Project Management Team, NKl Production Operations Team, NKl HSE Team, NK

Background

The appeal of using the Dual Con-centric ESP System is based on the economic gains that can be realized through the reduction in the num-ber of wells needed to be drilled; the costs involved in drilling a new well, mobilizing the rig and remov-ing flow lines for spacing is signifi-

cant when compared to running a Dual Concentric ESP application. Additional productivity gains can also be achieved by producing from two zones simultaneously and in the flexibility in choosing which res-ervoir to produce. Also, production from the two different reservoirs is through two different strings, thereby allowing for separate testing of the two zones without the need to shut one zone and without the mixing of well-fluid.

System Description

The Dual Concentric ESP System produces from two reservoir inter-vals, having different reservoir and production characteristics, in the same wellbore using ESPs. A lower ESP housed in a pod includes a tail-pipe and seal assembly that is locat-ed in a permanent packer situated between the perforations of the two zones desired. The pod and packer configuration isolate the producing zones. The fluid flows from the low-er zone into the pod annulus and is produced by the lower ESP. An upper ESP with a bypass system is installed above the pod to produce the upper zone. The bypass system allows the fluid produced from the lower zone to pass the upper zone ESP, flowing through the flow cross over tool and to the surface through the inner production tubing. The

Successful Implementation of ‘Dual Concentric ESP Pilot Study’

for Well RA#186, located in North Kuwait Asset

Submitted by: Ahmed Al-Jasmi, Team Leader, Research & Technology Surface Team

Ahmed Al-Jasmi, Team Leader, Research & Technology Surface Team


upper zone is pro-duced in the annular space between the inside of the outer production tubing and the outside of the inner production tubing string. The inner tubing provides a production path for the lower ESP. The tubing string must fit within the outer tubing, but still be of sufficient diameter to provide adequate flow area for the production from the lower ESP.

Fluid from the upper ESP flows through the flow cross over tool and to the surface through the outer production tubing. Zones can be produced either simultaneously or independently while running up-per, lower, or both ESPs. Produced fluids from each reservoir interval can be independently measured at the surface; a special wellhead is installed at the surface to produce the two zones independently.

Well RA#186

Well RA#186 was completed in two zones; the upper zone is in the Mauddud (carbonate) reservoir, while the lower zone is in the Up-per Burgan reservoir (sandstone). The two zones are separated by a very small distance, making inde-pendent production from the well, i.e. without allowing the mixing of well fluid streams of both the zones, a challenging task.

Before commencement of this pilot, the upper zone was producing natu-rally at an oil rate of 1129 b/d with 0% WC, while there was no produc-tion from the lower zone. Well fluid from the lower zone is taken to the surface in 2-7/8” tubing, while

well-fluid from the upper zone is taken to the surface in the annulus between 4-1/2” and 2-7/8” tubing. The lower arm of the wellhead is used for routing production from the upper zone, and the upper arm of the wellhead is used for routing production from the lower zone.

Way forward

The performance of the ESPs in the well will be closely monitored and

any problems will be analyzed and corrected. In addition, PGOR tests will be carried out at periodic inter-vals, thereby optimizing the perfor-mance of the ESPs. The KOC Study Team will issue a final report to KOC management with results and conclusions; based on the report, a strategy regarding the large-scale implementation of the technology in all KOC assets will be determined.

1 2 3 4

RA #186 team

Schlumberger’s innovative ‘Dual Concentric ESP Technology’

Petrel Software Helping KOC Optimize Performance

History of Petrel

The search for oil has come a long way in the past 150 years from random dig-ging to sophisticated technologies that map under the surface. Almost always in today’s age, the search begins with seismic surveys; data is then collected and analyzed in order to determine the best place to drill. Test well data is then used to determine the best model for res-ervoir exploitation. The process is long and very complicated, involving many different hardware and software applica-tions. Also, collecting the data is only one step; how to use and interpret the data then becomes critical for evaluating the reservoir and determining the best course of action to follow in order to optimize output.

One type of Windows PC software used by the Kuwait Oil Company allows for the integration of the various data from different sources to be aggregated into one single application. Known as Petrel, the software was developed by Schlum-berger and the 2009 version was recently released. The state-of-the-art software allows for interpretation of seismic data, well correlation, the building of reservoir models for simulation, the production of reservoir maps, and the creation of de-velopment strategies to get the most out of the reservoir. Referred to as ‘seismic-to-simulation’, the software incorporates the whole process in to one single ap-plication, allowing for an easier process-ing of data and reduced time through the integration of work done by geologist, geophysicists, and engineers.

Petrel has a long history in the oil indus-try, having been developed in Norway by a company called Technoguide and marketed commercially in 1998. Schlum-berger acquired Technoguide, along

with the Petrel software, in 2002 and had continually developed it, most notably adding links to both ECLIPSE and Fon-tSim, simulators that are standard in the oil industry. The 2007 version allowed for real-time updates through the data delivery mechanism, WITSML, and was built on the Ocean framework which al-lowed for third parties to code directly to the software. The 2008 release allowed for hydraulic fractures, sector modeling, and multi-threading of many modeling processes. It also introduced a geobody, which is a 3D object that is created in-stantly from extracted data from isolated areas of interest.

Petrel at KOC

The various Petrel models include: geo-

physics, geology and geological model-ing, reservoir engineering, drilling, and results evaluation for managers. Accord-ing to Dr. Mariam Al-Ajmi ,Team Leader -Information Solutions -Exploration & Production, and Senior Systems Analyst, Noha Najem, the most important features of the Petrel software for KOC include:

l Facies Modeling ,which estimates facies distributions using pixel and object based stochastic and deterministic methods,

l Fracture Modeling, which creates discrete fracture networks for fracture reservoirs based on well log interpre-tation and/or seismic data in 3D and inte-grates them seamlessly in the reservoir model, upscales the fracture properties to the simulation model and uses results directly in simulation,

l Petrophysical Modeling, Distributes continuous petrophysical properties into 3D model using an assortment of algorithms, including 1, 2, and 3D trends; facies models; and seismic data,

l Well Correlation, which displays and organizes logs in a flexible 2D visualiza-tion environment. Edits well tops inter-actively in 2D or 3D and estimate logs using the powerful well log calculator, and

l Fault Analysis, which calculates fluid flow properties and sealing potential for faults in a Petrel model. Uses results directly in simulation without leaving Petrel.

Formed in October, 2008, the Informa-tion Solutions - Exploration & Produc-tion - Team IS(E&P) under the Research & Technology Group has a mandate that focuses on delivering value-added solutions and quality services to core business. Since its formation, IS(E&P) did

Submitted by: Mariam Al-Ajmi, Team Leader-Information Solutions-Exploration & Production

Mariam Al-AjmiTeam Leader-IS-E&P

Noha NajemSenior Systems Analyst


not spare any effort on undertaking its entrusted mandate of exploiting, evaluat-ing, selecting and providing state-of-art solutions with maximum Return on In-vestment (ROIs) to the E&P user commu-nity that would help the assets to achieve their strategic objectives, and eventually, the Company’s vision and strategic goals. According to Al-Ajmi, “Currently, E&P us-ers have access to a wide range of highly specialized and sophisticated software, ranging from well planning, seismic inter-pretation, reservoir modeling and simula-tion, to drilling reporting & engineering and various other software that cover the whole E&P business life cycle. Petrel is used by petro-technical specialists in the disciplines of geology, geophysics, and reservoir engineering.”

The importance of technology to the oil industry cannot be underestimated and KOC is reliant on the best available tech-nology to optimize performance. Petrel 2009, which the Information Solutions Team rolled-out in the spring of 2009, will aid the Company in this aspect in the near future through the integration of the various software programs to devel-op and design the best possible strategies from seismic to simulation.

Ahmad Al-EidanAg. Manager-Exploration

Khalef Al-AneziTeam Leader-FD(MN)

“In the North Kuwait Jurassic, a large 35 million cell dual porosity permeability model was built using Petrel, covering the Najmah-Sargelu and the Marrat reservoirs over an area of 1800 Km2. This large model truly tested the capability of Petrel in fracture modeling compared to other competitors. For the first time a fracture model was developed in the same high resolution as the matrix model integrating image logs and core data with 3D seis-mic volume curvature attribute. This Petrel model was upscaled for dynamic flow simulation studies and finally the first Field Development Plan for these reservoirs was prepared truly following a “Seismic to Simulation” workflow.”

“Real time well monitoring is a very useful feature

of Petrel, particularly for thin layered reservoirs.

Success of MN-160 is a good example to place the

well within the targeted horizon”.

Talal Al-MutairiTeam Leader-FD

“Petrel is a Window based 3D modeling software

which is easy to handle, runs fast, having good

visualization and graphics display facilities. It has

a complete utility package from seismic data inter-

pretation to reservoir simulation. For reservoir like

Umm Gudair (MO), Petrel is very useful for both

static and dynamic modeling.”

Ibrahim Al-SammakTeam Leader-HOD(NK)

“Petrel software is a powerful and user friendly Windows based integrated application which is extensively used in KOC Heavy Oil (NK) Development Group to carry out tasks of geomodeling and various well-planning processes. Its unique 3D visualization provides quick quality check of all the data for making reliable decisions. Being one platform for high-end modeling to simulation workflows, it minimizes time consuming import and export problems.”

Waleed Al-KhameesTeam Leader-NFD (WK)

“Availability of integrated geophysics, petrophysics, 3D geomodeling work flows in Petrel en-

abled us to undertake comprehensive “seismic to simulation” projects to evolve an optimal field

development plan for the West Kuwait Jurassic Oil Fields.”


Company-provided housing, be-ing wide-spread in this area of the world, is a luxury that many take for granted. But in comparison with the rest of the world, decent, inex-pensive and close-to-work accom-modation is a rarity. For Kuwait Oil Company (KOC) employees who are fortunate enough to have Company-provided accommodation in the Town of Ahmadi, gone are the long commutes and the frustra-tions of dealing with the dangerous driving situation in Kuwait. How-ever, as good as it seems from the outside, the allocation of housing within KOC was not without its own flaws and inequalities. The Kuwaiti Digest was able to speak with Sami Al-Juhaim, Manager of Human Resources about the need for change to an automated Hous-ing Allocation Workflow System.

Al-Juhaim started in personnel administration in 2007 and noticed immediately that the manual system for housing allocation was not working effectively. Not only was the margin for error very high as it was easy to misplace the papers, but also the system was not be-

ing used in a proper way. He then thought about a systematic way and consulted the KOC IT Group, particularly Husain Al-Shamali, Hashem Ali, and Nailul Marom, about implementing an automated system.

Development of the software took almost one year, after which trials were completed and the Go-Live was initiated on July 1st, 2009. The new system has many advantages over the old system including the elimination of paper, better track-ing capabilities, and a completely fair, first come-first served basis. For instance, in the old days, an employee could submit a housing request paper, but the paper was not always immediately entered into the system. The result of the delay in processing was potential queue jumping depending on how and when the data was entered. Also, there was often a delay be-tween the exit of one tenant from

KOC–Housing Allocation Workflow System

An equal playing field

Sami Al-JuhaimManager-Human Resources

The objectives of the Housing Allocation Workflow System are summarized as follow:

l Employees can apply for housing accommodation through the KOC self service. Two links named “Housing Request” and “Housing – Em-ployee in Waiting List” are added in HRMS employee self service (KOC) in order to apply for the Company’s Housing Accommodation.

l A waiting list position number will be generated automatically accord-ing to housing policy.

l Allocation of Company accommodation through the system is done automatically and fairly.

l An available house will be offered systematically to the first applicant on the waiting list.

l Result is less paperwork and time-saving for the Housing Section.

l Employees can follow up their waiting list position numbers through “Housing Waiting List Status” in the system.

l The system provides clear status and information regarding the loca-tion and condition of the houses to be offered through GIS.

l A contract letter will be generated by the system automatically.

l System will provide reports as and when requested.

l Statistical analysis, special information and mapping can be generated through GIS.


a house, and the arrival of the next tenant; the consequence was sometimes damage to the property and unnecessary vacancy, with cor-responding revenue loss. Finally, employees were often indecisive as to whether or not they were going to take a house that was offered, resulting in many lengthy delays in the entire process.

Now, with the new HR ORACLE system, employees can apply for housing online and the system will not only determine whether they are eligible or not, but will also send them notification by e-mail. Once all official government docu-ments have been received and the application has been approved, the employee automatically goes on a waiting list. The system, rather than employees from the Housing Team, selects the potential occu-pant based on an unbiased system that takes into consideration the start date of the employee, his/her grade, and the size of his/her family. The Company houses have already been categorized and each employee is eligible for one or more categories, again, depending on the criteria. One important point to mention is that an employee’s

ranking can change depending on the other employees in the system at any given time. For instance, a new applicant will be placed in the queue based on the criteria, which means that he/she could be placed ahead of other employees who have already applied at an earlier date. The start date with KOC is the most important criteria, and the date of application for housing becomes important only when all other criteria for employees are the same. Employees can check where they stand at any time through the ORACLE system.

When a tenant vacates a house, notification is automatically sent to Building Maintenance and the key to the house is handed over from the last tenant to Human Resources and then to Building Maintenance. The house is then emptied and renovated in the following one to three weeks. In addition, to pre-vent vandalism a security guard is placed in front of the house as long as it is unoccupied.

The first employee on the list for that particular category of house is then notified automatically by e-mail, or by phone if on leave,

and has one week to either accept or decline the offer. Should the offer be declined, the employee is barred from re-entering the system for the next 6 months. Depending on who enters the system in the fu-ture, declining an offer could mean having to wait several years before another offer comes up.

Also of note, when an employee lives in KOC housing, a housing allowance is deducted automati-cally from the salary, and when the occupant leaves the house and re-turns the key to HR, a correspond-ing adjustment to the salary is also done automatically. This was not the case in the old system, which often resulted in errors to salary deductions and much unnecessary correction paperwork.

In conclusion, the implementation of the Housing Allocation Work-flow System means that there is now a level playing field for every-body. In addition, the new system will reduce the amount of office work required, the entire process will be much faster, and the cost of the new system will be much less than the previous system.

START

FINISH

Have CompanyAccomodation? Kuwaiti Employees? Approve?

Accept offering?

Reaching WLPosition No. 1

House ready tobe offered?

Is House in ConditionGood?

MOH Certificate

MOJ Certificate

Allocate House Type basedon Housing Rules

Populate Waiting ListPosition

Offer a Vacant House

Out of the system & canre-apply after 6 months

Allocate the house

Change house status to beOCCUPIED

Building MaintenanceReceives a House

Applicant will sign Housing Contract

Applicant will receive key of thehouse from Building Maintenance

Email will be sent to Applicant

Applicant can monitorwaiting list position through

KOC Self Service

Building Maintenance Sectionwill carry out maintenance

works

House Status will be changedto available and ready to

be offered

Inspection will be carried outby Housing Section

Housing Section will putremarks / reasons

Housing Allowance andHousing Grant will be ceased

START

Employee RequestsHousing Accomodationvia KOC Self Service

Yes

YesNo

No

No

No

No

No

No

Yes

Yes

Yes

Yes

Yes

Housing Allocation Workflow



The Crisis Management Center (CMC) located in the Kuwait Oil Company’s (KOC’s) Main Office building is a room designed specifically for dealing with emergency situations that require top management to be present. Equipped with the newest communication technol-ogy that is being updated as even better technology becomes available, the room looks somewhat like a mini-version of NASA control.

When the Main Office was re-opened again in 2003 after damage due to the Iraqi invasion had eventually been re-paired, the CMC was located in the corner of one of the conference rooms. Obvious-ly, having the room for two uses meant disruptions when an emergency situation occurred, and a subsequent search en-sued for a suitable location. The present location was established in 2006, is within easy reach of all of top management, and is used exclusively for crisis management.

Having a central location where all of the key people involved in the handling of an emergency situation can gather makes sense in terms of communication. In addition, a direct link with the Inci-dent Management Unit (IMU), which is a mobile communication truck that can travel anywhere in the country, puts the CMC indirectly at the scene of an inci-dent. State-of-the-art technology in both the CMC and the IMU allows for better understanding of the incident through the transfer of visual information and better communication capabilities through interactive systems. Yousef Ali, Acting Manager -Security & Fire Group, stressed the importance of information and time in an incident situation. “Accurate informa-tion in a timely manner is critical when dealing with an incident, and information that we are able to obtain in seconds today used to take hours. The use of the

most appropriate technology, such as GIS, is critical to the type of information, its accuracy, and how quickly we can retrieve it, process it, and forward it”, he explained.

For instance, in August 2009, the CMC, which was using 3G technology, tested VSAT technology. An interesting feature of the system is an interactive touch screen, which allows those in the CMC to send messages, drawings, etc. to the IMU with-out having to transfer files via internet. This means that communication is in real time – critical in an emergency situation. The test of the interactive screen was the first in the Kuwaiti oil sector and holds promise of better things to come in the future. Fadhel Ali Haider, TPL Specialist Communications and the main designer

of the new system, explained that there are limits to the 3G technology, but VSAT, with some fine-tuning, will allow KOC to take advantage of greater flexibility in the system due to higher bandwidth and scal-ability. In addition, an important feature of VSAT is its mobility; the small satellite dish can be fixed to the roof of a car or to the IMU and can, therefore, be relocated anywhere. Currently, the only means of communication in the field is through the existing GSM system, which is limited because of the limited bandwidth and coverage across the Company operational areas. While GSM can be vulnerable to terrestrial disasters, VSAT offers a dedicat-ed wireless link completely independent from the local infrastructure.

Haider further explained that KOC is at the forefront in the oil industry in the de-ployment of technology. The attraction of VSAT was evident by the presence of two observers from the Kuwait National Petro-leum Company (KNPC), which also has its own CMC and is interested in the satel-lite system, and a visit from the Emirates National Oil Company. The continued implementation of the lastest technology will ensure that KOC serves as a leader in the industry and that information is provided to decision-makers accurately in real-time.

The Crisis Management CenterDealing with incidents using the best

technology available

What is VSAT?

VSAT is an acronym for Very Small Aper-ture Terminal. The technology involves a fixed or mobile ground station with a small dish antenna and is used for many types of communication transfer including credit card verification, internet, and VoIP. The technology has advantages in that it is less likely to be damaged than other systems due to cable breakages, etc. Also, as it is separate from the local infrastruc-ture, it is ideal in disaster situations. The system is also secure and affordable.

Members of the Crisis Management Team deal with a Mock Incident at the CMC


Performance Of Thermal Recovery Processes In Lower Fars Formation-

Experimental & Numerical Evaluation

Background

The Kuwait Oil Company (KOC) Research & Technology (R&T) and Heavy Oil (HO) Groups worked closely with Kuwait University in a study that investigated the performance of the thermal recovery processes in the Lower Fars formation. Analysis will then help in designing developmental plans for the heavy oil deposits.

The Lower Fars in North Kuwait contains a substantial amount of heavy oil, and these hydrocarbon resources are encountered in three main fields; Ratqa field holds the lion’s share of these resources. In the 1980’s, Lower Fars was recommended for thermal enhanced oil recovery (EOR) operations and, as a result, it was subjected to two pilots that utilized steam cycling stimulation. Currently, interest

in Lower Fars development has

been revived due to several

reasons, and consequently,

performance of the formation

under thermal EOR applications

needed more attention.

In the study, the performance of various thermal recovery techniques in core samples, collected from number of wells, was evaluated, and a series of laboratory experiments was conducted in order to enhance

Submitted by: Badar Al-Matar, Mishaal Al-Ghareeb & Abdullah Al-Ajmi

Badar Al-MatarSnr. Reservoir Engineer

Mishaal Al-GhareebKuwait University, Petroleum Engineering

Department

Abdullah Al-AjmiKuwait University, Petroleum Engineering

Department

Figure 1: Flow chart of the experimental steps


understanding of the Lower Fars performance under thermal applications. The performance of three flooding techniques: unheated waterflood, hot waterflood, and steam flood, were numerically simulated and a good history match was obtained. Kuwait University, under the guidance of both the R&T and HO Groups, was able to develop a numerical model and to use the results from the coreflooding experiments as input data in a simulation model that will minimize the number of required experiments in the near future.

The results showed that oil

recovery obtained from unheated water experiment was 46.7% of the initial oil in place after injecting 4 pore volumes of water. For the hot water flooding, oil recovery increased by 12.3 % to reach 59%. For the steam flood experiment, the enhancement in oil recovery factor reached 14.3%, which brought the oil recovery factor to 61%. Work is now underway to conduct similar experimental series on new samples in order to be able to further evaluate the application of thermal methods on Lower Fars. The actual

experimental steps are described in Figure 1, with core samples of the Lower Fars formation from Ratqa well-162 being used.

Experimental work and data collection

The experimental setup consisted of a core flooding system which included fluid injection pumps, a core holder, a core sleeve (viton), a special perforated sleeve for loose sand, a confining

Figure 2: Schematic presentation of the experimental setup

Figure 3: Core holder and sleeves

(A) Core Holder and end caps (B) Special packing

From left to right: Dr. Mishaal Al-Ghareeb, Prof. Farooq Ali and Dr. Abdullah Al-Ajmi


Figure 4: Porous medium shown as rectangular blocks

pressure system, a heater, and a fraction collector. Figure 2 shows a schematic drawing of the experimental apparatus and Figure 3 shows the core holder (sleeve and end caps) before assembly.

Modeling of experiments

The objective of simulating the thermal flooding experiments is to build a numerical model which can be used to further explore the effects of several design parameters on the efficiency of oil recovery. After building the numerical model, a number of simulation runs are proposed in order to investigate the various interrelationships between thermal flood parameters, such as: injection temperature, flow rate, oil viscosity - temperature curve, and injected fluid viscosity. The results from simulating the unheated and hot water flooding experiments came from tests conducted on well RQ-162. The first task in constructing a numerical model is to transfer the spatial domain of the system into a representative geometrical shape. Thus, the spatial domain of the porous medium was converted into small rectangular blocks as shown in Figure 4.

Conclusions and recommendations:

In this study, experimental work and numerical simulation were conducted on the Lower Fars formation, with the following conclusions and recommendations:

1. Detailed data acquisition and modeling of Lower Fars significantly improved the understanding of the reservoir performance under the thermal recovery processes.

2. Oil recovery obtained from unheated water core flood experiments in Lower Fars was higher than expected.

3. Reservoir initial water saturation and injection strategy tend to significantly affect the performance of steam flooding operations.

4. Higher initial water saturation maximizes the oil recovery obtained by steam injection.

5. The results indicated that

unheated water flood can be an

option to start the development

of the Lower Fars field before the

application of steam flood.

6. Additional investigations

on different Lower Fars oil

are recommended to further

improve the understanding of the

reservoir performance.

Flow

Women in the WorkplaceBreaking down barriers

Ambassador Jones is the first female American Ambassador to Kuwait and the 15th overall since Kuwait gained independence in 1961. It is her first posting as Ambassador, and she has also served in various ranks in the Senior Foreign Service in numerous countries in the region and in South America. She was the keynote speaker at the inauguration of the Kuwait Oil Company’s Professional Women Networking, which took place last June, and excerpts from her speech are included here.

Today, I think most women take for granted our ability to choose to enter the workplace as professionals, while keeping all other options open. It may surprise people to know that until 1972, women serving in the U.S. Foreign Service of the Department of State were forced to resign if they married. Obviously, a variety of factors have propelled women into the workplace over the years – whether manpower shortages due to war, economic necessity, or something as basic as fertility rates and life expectancy, which create labor shortages. But the things that have ensured the successful advancement of women in the workplace are the same things that have ensured success for men, i.e. subject matter expertise, an ability to make oneself heard through effective interpersonal skills, the ability to work on a team, and stamina and persistence. One must also be willing to take responsibility for a bit of calculated risk at times; that is the essence of leadership. One must also have the humility to say “I

don’t know. Teach me.”

As leaders, we have a vested interest in seeing our teams perform to the best of their abilities; our own success depends upon it. It is essential that the members of our teams, men and women alike, see each other not only as competitors for promotion, but as compatible and collegial force multipliers for accomplishing corporate or – in my case – mission goals. And as an older professional woman, I have another goal, which is to develop a comfort level within the organization for the different gifts each member of my team brings to the table, both male and female, and in the case of the US Embassy here, over 16 nationalities.

One of the most important professional insights I ever received came from Roz Ridgway, the first

woman Assistant Secretary for European Affairs, which traditionally had been a bastion of white, male Ivy-league officers. Ambassador Ridgway told a luncheon gathering of young female officers, including myself, that she knew she’d truly been accepted by her professional male cohort when she made a mistake and they told her “Never mind; you gave it your best shot. Let’s move on.”

I’ve mentioned parenting skills in the context of the workplace. Indeed, I’ve found that five “powerful parenting tools” as described in the book “The Ten Best Gifts I Give My Children” are effective in the workplace as well: Forward Focus, i.e. guiding your team toward your goals; Messaging, or regular communication; Teaching (through asking questions in Socratic fashion); Listening (with full attention); and Modeling (the behavior you

Ambassador Jones gives her keynote speech to the Professional Women Networking

Submitted by: the American Ambassador to Kuwait, Deborah K. Jones


would like others to display). In fact, I’m going to suggest that women bring some particular skills that can be used to positive effect in the workplace.

Those of us who have juggled family and professional obligations, not always with one hundred percent success, know how challenging it can be to allocate the amount of time we believe is needed to each of the tasks before us. There are only 24 hours in a day and often 36 hours of demands. My sense – while I acknowledge this may be changing in small ways here and there – is that women, no matter how traditional or non-traditional the society – continue to assume the lion’s share of responsibility – whether as wives, mothers, aunts, daughters, cousins, teachers, caregivers, friends -- for “civilizing” our children on a daily basis into becoming full and productive members of society. It is hugely important work. We are, as it were, the central poles in our domestic tents, or our homes, which are the building blocks for society at large. This reality often leads to criticisms of women entering the workplace as full-time professionals, or the regular production of articles such as one I saw only two weeks ago in the New York Times entitled: “Liberated and Unhappy.”

While it’s not always easy, I believe it is a blessing to have this challenge and responsibility. I do not believe that a generous and just and wise God would have blessed one half of the human race with gifts not intended to be shared or developed. And in fact, this experience of managing home life gives us an edge in the modern workplace: skills related to consensus-building, decision making, teambuilding, and leading by example often come more naturally to us because we have had to deal with this on the home front. And that’s not to mention the high value placed on our multi-tasking skills!

I suspect most would agree that rather than challenging the suitability of women for the workplace, we need to seek ways to make it easier to balance work and child-rearing demands which is yet another reason for building professional networks which will provide us support, just as those natural family networks supported our mothers when bringing us up. And perhaps there’s a need for increased teamwork with our male partners on the home front, as well as in the office!

The recent parliamentary elections in Kuwait saw more barriers come down on the path to women’s achievement in all fields. Kuwait stands as a proud model for the region in terms of political vitality and the inclusion of women at all levels of society, from the board room to the National Assembly. I particularly liked Dr. Salwa’s remark following her election victory to the effect that “Kuwait’s democracy is now standing on both feet.” Because we know – as President Obama suggested in his Cairo remarks – that countries where women are

empowered and well-educated are far

more likely to be prosperous, in every

sense.

I often remark to visiting delegations

that Kuwait has one renewable

resource: its people. Around the

world, governments and companies

are finding that the best investment

they can make is to develop this

natural resource, which offers multiple

high-value applications for relatively

modest capital input. When both men

and women are encouraged, educated,

and trained to take part in a country’s

development, whether social, political

or economic, that human capital is

multiplied; and greater investment

means higher returns.

The Professional Women’s

Networking, in strengthening KOC

women, will strengthen the overall

KOC team. Strong businesses, strong

governments, strong societies and

even strong bilateral relationships like

ours, result from healthy partnerships,

enhanced by positive and productive

competition among all stakeholders.

Ambassador Jones receives a gift of thanks from KOC C&MD,Sami Al-Rushaid and DMD-NK, Hosnia Hashim


The Sky’s the LimitNawal Al-Fuzai sets an example

Climbing to the top of any organization requires skill, perseverance, and most often, sacrifice, for women even more so than men. This is definitely the case with Nawal Al-Fuzai, Assistant Undersecretary for Economic Affairs in the Ministry of Oil. Being one of few women who has achieved a high position within any of the Ministries, Al-Fuzai serves as a role-model to young, ambitious women and is proof that women can compete, and cooperate, with their male counterparts. The Kuwaiti Digest had the honor of being able to speak with Al-Fuzai about her life, the current oil situation, and the Ministry of Oil.

Background

Growing up in a large family, Al-Fuzai was aware from the beginning of the importance of family. Her commitment to her immediate family continues throughout her adult life as she cares for both of her parents in their final years. Currently, she is working on restoring the family home in the south of the country, for use not only by herself, but also for her many siblings and their families.

Al-Fuzai, as with many young people, was unsure of what career path to take and started studying political science at Kuwait University in the 1970s. With career options being limited to either the Ministry of Foreign Affairs or KUNA, and both at the time being somewhat restrictive for women, Al-Fuzai changed her concentration after two years of study to economics. Although she struggled with the math elements, she graduated after four years and started looking for work.

Not wanting to be in banking, where she needed to use her math skills on a daily basis, Al-Fuzai was spending time looking elsewhere when she came upon a newspaper article that would determine the path her life would take. “I saw an article on women, both Sheikhas, working at the Ministry of Oil”, she explained, “and I just knew, I also want to work at the Ministry”. However, wanting to work at the Ministry and actually being able to do so were two different things. After applying with a friend, Al-Fuzai waited and even though her friend was called for an interview and ultimately hired, Al-Fuzai heard nothing.

It was only months later, after her friend had recommended her, that Al-Fuzai was finally hired and began her career as a researcher. After 5 years, she became a controller/supervisor for pricing and a few years after that, Director for Local Oil Economics, and eventually Director for Oil Research & Studies. “I wanted to avoid working with numbers as math was not my strong point, but the irony was that I ended up in data and information, which is all about numbers!”, she laughingly

emphasized. In 2001, she became the Kuwait National Representative at OPEC and in 2007 she was appointed the first female Assistant Undersecretary. In September, Al-Fuzai celebrated 30 years with the Ministry and is an example of what can be achieved with motivation, dedication, and hard work.

The current oil situation

The price of oil is determined, of course, by supply and demand; this relationship was seen in the spring of 2009 when OPEC reduced supply to the world market, thereby causing an increase in price. According to Al-Fuzai, these decisions prevented the price from drastically falling, perhaps to as low as $20 a barrel. Production was decreased by 2.2 million barrels per day in an effort to halt the falling price, and although successful, the future is still uncertain. “The oil markets reflect the global economic situation and the economic instability means that the price of oil will be difficult to keep steady”, she explained. However, she is hopeful that economic growth will start in 2010 and that investment in the world stock markets will generate the cash required for the revival of the economy.

The Ministry of Oil

No one would doubt the loyalty that Al-Fuzai has for the Ministry of Oil, but she is also not blind. “The Ministry is not perfect,” she says, “many qualified people have left over the years and have moved on to jobs with better pay, benefits, etc. Also, the constantly changing Parliament, and subsequently, the new appointment of Ministers, is very disruptive”. Al-Fuzai is

Nawal A. Al-FuzaiAssistant Undersecretary for Economic

Affairs, Ministry of Oil


also critical of some of the newer

employees, particularly their desire

to have everything at once without

making the required efforts to

achieve it. She remembers back in

the 1970s and 1980s when salaries

were low, but everyone worked very

hard for the good of the Ministry and

the country. “Young people just are

not motivated and growth today is in

the hands of only a few people,” she

explains.

As for the future, Al-Fuzai says that it

is unclear, but she has hope that the

Ministry will increase in strength and

will be the leader in the oil industry.

She is also hopeful that the glass

ceiling for women will be removed

and that their promotion will be on

par with that of men. As for herself,

she loves her work and is looking

forward to many more gratifying

years with the Ministry.

The Ministry of Oil actually started off as a Department within the Ministry of Finance. Later, in 1975, the Emir, Sabah Al-Salem Al-Sabah, issued a decree that formed the Ministry of Oil. Although having some overlapping functions with the Kuwait Petroleum Corporation (KPC), the Ministry focuses on international issues and organizations such as OPEC and the UN and assists the Supreme Petroleum Council, while KPC concentrates on national concerns. In fact, one of the main responsibilities of the Ministry is to set the price of oil and establish the production policies. The close relationship between the Ministry and KPC is evident in the fact that they share the same building and that the Minister of Oil is also the President of KPC.

The Ministry can be divided into five different programs including: Administrative and Financial Affairs, Technical Affairs, Economic Affairs, Information System, and Control and Petroleum Mass Media Affairs. With a mission of protecting the petroleum resources, exploiting and developing it in accordance with the best method and in a way that secures the growth of the country resources, increasing its (Kuwait’s) national income and securing the safety of workers, environment and structures in accordance with the provisions of the Amiri Decree delivered on 12th August 1986, the Ministry has many objectives aimed at achieving its mission without prejudice and protecting the wealth for the next generations.The Economic Affairs Program is competent with proposing and following up the strategic plans and policies related to development of the oil and gas industry in the country and specifically, the production and pricing policies of crude oil and natural gas, and the pricing policies of petroleum products in the local market. It is also competent with preparing the studies and researches relevant to oil and energy, preparing the five years plan in coordination with all divisions of such sector.Source: www.moo.gov.kw

Al-Fuzai greets MP Dr. Masouma Mubarak


The name Sara Akbar is well-known within Kuwait and in the Kuwait Oil Company (KOC), most notably from her role in fighting the oil fires of 1991. Now working in the private sector, the Kuwaiti Digest was able to meet with her to discover the person behind the persona.

You are very much associated with the oil industry in Kuwait, how did this happen?

My whole life has revolved around the oil and gas industry. I was born in Ahmadi and raised in Fahaheel, so the oil facilities were my backyard and playground. In fact, my brothers and I used to sneak into the facilities to watch the majestic flare of the gas closely. It was amazing how powerful the flames were, so loud, so hot. I grew up around the oil and gas facilities.

After graduating from high school, I went to Kuwait University to study chemical engineering. I guess I always knew that I would work in the industry as it was a part of me.

You are one of the most recognizable former employees of KOC, what was your career path like?

I started with KOC in 1981 as a UD (Under Development) engineer and did a rotation around the Company for 2 years. I wanted to be a ‘good’ engineer and by good I mean an engineer who actually has field experience, gets her hands dirty. However, when I first requested to work in the fields, I was denied because I was a woman.

Fortunately, Faisal Al-Jassem, my Manager, supported me and I was able to work in the fields. My first assignment was offshore on a well called Rikhua, and I used to spend 36 hrs on the job. After that, I was able to work offshore and onshore in all the fields day and night. And indeed I loved it all!

Although I was the first female engineer in the field, I was not doing it because of my gender, but rather because I was interested in the work. I think that field work requires a certain type of character with great patience, quick decision making, in addition to being able to stand a harsh environment; therefore, not many women are interested to work in the field, because most women don’t have those basic requirements. Also, the attitude of co-workers can, at times, be challenging and it will still take time before the old barriers disappear. What is

important is that women who are interested in field work be persistent, as demonstrated by the women currently working for KOC and for some contractors. I think that KOC has done a good job in promoting women and providing them with equal opportunity.

I would have to say that the most exciting time for me at KOC was during the 1990s, after the war, when there was lots of rebuilding and everyone was working hard. Also, the management at the time was exceptional. The introduction of a proper planning group with the help of the technical assistance agreements with two international oil companies exposed KOC to many new ideas and management concepts such as strategic planning, performance management, reserves management and resource planning, which helped enhance the performance of KOC to a great extent. KOC has been trying to reach international standards, but one has to remember that KOC is not an international oil company but rather a national oil company. As such, the driver’s are different and the business is different. Although there is some criticism regarding KOC performance, in comparison to other NOCs, KOC is ahead in many respects.

The war itself, and the after math, have been well documented but the most memorable moment for me was the extinguishing of BG-160, which took place on my birthday, October 25th, 1991. It was the largest well in Kuwait with the largest fire, and blowing

The Good EngineerAn interview with Sara Akbar

Sara AkbarCEO, Kuwait Energy Company


out the flames was the biggest birthday candle I ever had!

You left the umbrella of the K-Companies to move to the private sector, how did this come about?

I left KOC in 1999 and went to work for the Kuwait Foreign Petroleum Exploration Co. (KUF-PEC) as a Planning Manager and Manager of New Business Devel-opment for the following 6 years. I was very privileged to be able to work for Ahmed Al-Arbeed (KUF-PEC C&MD at the time). I really admired his management style, however after six years I wanted to work in a freer environment and have my own achievements.

After a meeting with investors who were anxious to create the Kuwait Energy Company (KEC) in order to capture opportunities in the region, I decided to make the jump. KEC has been in operation for the past 4 years and is con-tinually building, mainly because ‘we do what we say’ and we build a harmonious culture inside the Company. Fortunately, the timing was good as oil prices had in-creased and many investors found it a good opportunity to invest in the oil and gas business. We pride ourselves as an indigenous E&P company based the best oil and gas region in the world with no independent oil and gas sector, and we saw ourselves as being able to fill this niche gap in the market.

At first, we had to build the Com-pany and create a proven track record. We were able to do this, primarily with our first contract with Petroleum Development Oman, where we have a service agreement with our partners Med-co energy for the development of the Karim small fields. There is re-ally no difference in terms of the management of large and small

fields except for the scale, partic-ularly the level of investment.

During the past couple of years, we have also acquired assets in Egypt, the Ukraine, Russia, Ye-men, and Pakistan. On average, we are concluding an agreement every 3 months and in the last three years our profitability has grown from USD 1 million to USD 30 million.

Many women see you as a role model, who have been your role models?

I don’t see a role model as having to be a particular gender and in my professional life I have never distinguished between genders. What is important is that the peo-ple have qualities and vision. As such, I want to instill in my three children that hard-work, dedica-tion, and commitment are impor-tant for success in any endeavor.

Do you have any regrets in your life?

I guess my only regret is that I did not move to the private sector sooner. If KEC had been cre-ated in 1995, or even in 2000, we would have been the largest, inde-pendent company by now.

What are your hobbies?

I love reading, particularly poetry, and have been an avid reader since my childhood. Although I focused on Arabic literature, I discovered my talent and love for the English language in university. In fact, I read so much in English, that I started losing my feel for Arabic! Now, I focus on both lan-guages simultaneously .

In addition to reading, I enjoy swimming and writing. In fact, one day I would like to write all of my stories and experiences in a book. One of my favorite films of all time is ‘Out of Africa’, and when I was in Nairobi I went to Karen Blixen’s house. Her book (under the pseudonym Isak Di-nesen) made a huge difference to so many people and I would like to do the same. Although I don’t have the time to write now, I do have time to sketch; even though I would not consider myself an art-ist, I enjoy it nevertheless.

The good engineer, the good man-ager, the good mother, the good writer,… the list goes on. Indeed, whatever Sara Akbar undertakes, ‘she does what she says’. A recipe for success and an example for all.

Sara Akbar receives a thank you gift from Tareq Rajab at the NES Graduation Ceremony


On June 24th and 25th, 2009, the College of Engineering & Petroleum’s Society of Petroleum Engineering organized its annual exhibition to display the final year projects of the engineering students. In total, 78 proj-ects involving over 250 students were displayed along with booths from the sponsoring agencies. The Kuwait Oil Company (KOC) and the Kuwait Pe-troleum Corporation (KPC) were two of the corporate sponsors.

The Kuwaiti Digest was able to speak with Mr. Hamza Al-Salman, Secretary of the Society of Petroleum Engineers, and one of the organizers of the event. According to Al-Salman, the ex-hibition is organized bi-annually and is a chance for the graduating students to showcase what they have learned in the past 5 years of studies. A civil engineering student in his final year, Al-Salman worked with other students on the Dynamic Tower, which was sponsored by KPC. The tower has the unique concept of rotating, thereby giving all residents a changing view. Over 80 stories high and consisting of apartments, villas, and a hotel, it is ‘scheduled’ to be built in Salmiya, next to Marina Mall. The tower has advantages over traditional construc-tion methods in that the floors are pre-fabricated in factories, the con-struction time is 1/3 of the normal

time, and the tower is self-powered.

Some of the projects sponsored by KOC involved, not surprisingly, oil and gas technologies and included Production of Synthesis Gas from Vac-uum Residuum by Partial Oxidation, Production of Synthesis Gas by Partial Oxidation of Natural Gas, Production of Ethanol from Synthesis Gas, Heavy Oil Diet: Optimum development plan for a heavy oil field in Kuwait, and Production Optimization Design for Complex Reservoir, and Optimum Recovery for Gas Injection Based on Minimum Miscibility Pressure (MMP).

In the MMP project, a depleted res-ervoir in the Middle East was chosen

and various Enhanced Oil Recovery (EOR) techniques were used includ-ing the injection of four different types of gas, one at time. The gases chosen were pure CO2, impure CO2, nitrogen, and hydrocarbon. Data was collected and correlated and then imported into a simulation program, CMG. Results from each of the in-jected gas were compared and the most suitable method for the particu-lar reservoir was chosen based on oil production, water production, oil recovery, and remaining oil in place.

Sponsoring projects, such as those at the Kuwait University College of Engi-neering and Petroleum, is an example of KOC’s corporate responsibility and is a chance to invest in the future, not only of the petroleum industry, but of society as a whole. KOC’s commit-ment is shown in its past sponsorship of the event and by the fact that it will continue to sponsor such events. In-volvement at the university level also gives the Company the perfect op-portunity to market itself to potential student interns and future employees.

Dignitaries at the ribbon-cutting opening ceremony

College of Engineering & Petroleum Design Exhibition


Every summer in Kuwait, residences are bombarded with messages to reduce both water and electricity con-sumption. This is not surprising given that the desert country is very dry - resulting in increased water consump-tion- and very hot – resulting in in-creased use of air-conditioners, which use an incredible amount of electricity. But many people still feel that their own personal consumption is just a ‘drop in the bucket’ and that changing their own habits will not make a dif-ference. It is exactly this line of think-ing that is wrong, and was the reason why the Kuwait Oil Company (KOC) started a campaign during the hot summer month of August to promote the idea that ‘WE all have to change’ and WE can make a difference.

Indeed, if every individual reduced his/her consumption by, say, 20%, then the total consumption would also drop, not by 20% if one considers the business and industry use, but still by a significant amount. But for this to

occur, WE, each and every one of us, have to do our part. And a reduction in consumption is not just in the sum-mer months, but all year round. Each one of us needs to change his/her energy-consuming habits. WE alone are responsible for our actions and the affect they have on the local, national, and international communities.

In order to emphasize this point, the Water and Electricity Campaign orga-nized by the PR&I Group and in line with efforts being made in the entire public sector through the Execu-tive Committee for Water & Electric-ity Rationalization in Government Institutions and Ministries, focused on various measures that individuals can undertake to reduce the burden on the water and electricity system. For example, too much electricity is being used, so the main focus of the campaign at KOC was to get offices and private residences in Ahmadi to think about reducing the amount of air-conditioning by setting the thermo-

stat higher. Other measures are also important and it is recommended to:

l Set the thermostat at 25oC, rather than at a lower setting. After all, when it is over 40oC outside, 25oC inside is relatively cool.

l Turn off the water heater during the summer months. Use the cold water tap as your hot water tap; since cold water is normally stored, and subsequently heated, on the roofs of buildings, the natural heating by the sun allows the ‘cold’ water to be used as hot water. The water in the hot water tank, which is now turned off, remains at room temperature and can be used as ‘cold’ water.

l Turn off lights when leaving a room and use fewer lights when in the room.

l Do not have water running when washing dishes, shaving, brushing your teeth, etc. Instead, close the drain and fill, or even better, half-fill the sink and use this water.

l Wash laundry only when necessary and ensure that the washing machine is full. This applies to the dishwasher as well.

l Avoid washing cars and streets with the hose. Cars can be washed with a bucket of water and streets do not need to be cleaned with water, but can instead be swept.

l Avoid watering outside plants and grass in the middle of the day. Not only does more water evaporate, it is also not good for the plants. Water be-fore sunrise or after sunset if possible.

The list above is not comprehensive, but rather just the start of some com-mon-sense approaches to reducing consumption. But a little bit of effort can go a long way, as long as WE all do our part and WE all change.

Water and Electricity CampaignWE all have to change



As in most companies, private life and work life often do not cross paths and only the work-related aspects of a person are known. However, gaining a peek into the private lives, and hidden talents, of the Kuwait Oil Company (KOC) employees can be pleasantly sur-prising. Such is the case with Madathil Rajendran Nair, Senior Public Relations Officer, in the Local Relations Team, Public Relations & Information Group.

Working with KOC since 1979, Nair is considered a fixture in the Local Relations Team, so much so that his friends call him ‘Local Relations Nair’! His length of service means that he has knowledge and experience well beyond that of an average employee and he is often consulted on various matters. The Team, which facilitates KOC’s interface with various State departments and organizations on technical and adminis-trative issues of a non-routine nature, is considered the ‘trouble-shooter’ for the Company in matters relating to the State.

Soft spoken and modest about his accomplishments, Nair writes in both English and Malayalam and has his poems, along with some philosophi-cal essays, published on a number of websites. Writing on various subjects, just a couple of examples of his work (see inset) demonstrate his skill. This particular poem was inspired in June of 2009 (but not actually written until Au-gust 31st, 2009) as a result of Nair’s visit to Bayt Al-Sadu (Sadu House) on the Arabian Gulf Road close to the National Museum. “The place, its ambience, the way things smelled there, the artifacts on show – all of them impressed me very much. There was something soul-stirring about them – I should say that it was a sort of déjà vu that took me to the past as in a time warp. I wanted to write a poem about it,” he explained. Although his original idea was to write something about Al-Sadu – about the

beauty of the artefacts and the people who made it, what emerged turned out to be something completely different, more of nature’s and God’s Al-Sadu.

According to Nair, “Poetry has always been in my blood, I believe; but I have never been systematic with it. I always carry poetry in my head and any ‘per-colation’ onto paper has been only very sporadic.” Although Nair mentions that laziness is the reason for not writing the poetry down, one can also assume that lack of time is also a factor, particularly since the last couple of years have seen him writing more frequently.

As for the future, Nair, who is a former prisoner of war in Iraq and now past retirement age, hopes to stay with KOC for at least another two years, “I enjoy working at KOC and am grateful to my colleagues and superiors, who have treated me as their equal and respected my feelings and sentiments; I don’t think this would have happened in any other organization, even in my own country.” He would also like to stay in Kuwait, and mentions that as he has spent over half of his life here, even the dust-storms and the dry heat are dear to him, and he would vouch that the most beautiful springtime and sunsets are to be found here.

Hidden TalentsAn Interview with Madathil Rajendran Nair

Assadu (Weaving Art of Arabian Gulf)

The desert lies dreamingAs an Arabian night agesVagrant winds wanderAimless on the sandsDrawing patterns intricate -Nature’s sublime assaduMen clad in bishtsLanguish in summer tentsFeeling importantHeavily perfumed Waving rosariesTheir eyes glitteringMystified by sheesha fumesNurturing unknown dreams -Secrets of sublime assaduA buxom beauty in burqaHer hand shading her eyesAn envy for mascaraWaiting at the door-stepsFor her man to returnFrom a distant errandTired on camel backSilhouetted against the sunA big orange that sets -Dusk’s sublime assaduChildren scampering up and downThe ephemeral dunesIn the golden evening sunNoisy as they hailThe distant water cartInching towards the village heartFrom the far off end of land -Life’s beautiful assaduThe mind returns to its hearth,The great bayth assaduWhere the dark windy nights,Dust, sun and cold,Camel hooves on sand,Rugged men holding falcons,Damsels in chatter,Kids with matted hairHolding their mothers’ attire,All mingle on a weaving wheelIn a wonderful assaduThe night-sky smiles down on the hutsAs moonlight spreads acrossThe starry expanse aboveGrace of God’s great assadu

By Madathil Rajendran Nair

Madathil Rajendran NairSenior Public Relations Officer, Local

Relations Team


Ode to Tsunami You came uncalledTo sweep us in your foldsAnd drag us to depths unknown.You came uncalledTo crush our dreamsAnd snatch treasuresFrom our helpless hold.

Tsunami! We had heard of youIn our school daysAs one striking far off landsAnd seen you in moviesThat our wizards makeTo fill their coffers fullAs a speeding wallThat makes humans fleeTo the safety of mountain heights.

But never even in the worstOf our nightmaresDid we ever suspectYou would give us a breakfast callTo smash our little tea-cupsFilled with care and mirthAnd topple sunshades of comfortAlong havens we frequentTo watch delightful sunsets.

Never did we suspectYou are ruthless and carelessTo wipe off the onesWho look at the sunAnd plead every mornFor nothing but light alone.

Tsunami, why were youSo unkind and cruelEven to babesHugging their momsIn blissful slumberIn forlorn hutsAlong our golden coasts?

You are madness unleashedTo upend our dreams

Upturned on a brittle worldWhere no more are grantedMethod, trust and certitude.

For we now suspect the breezeFor the storm, the murmur of the seaFor dangers unknown,Whose bosom with carefree easeOur folks used to fathomFor pearls and wisdomFrom days unknown.

The sea was our motherAnd now she has frowned;The wrinkles on her faceMake us shudder and fleeLike ants before the stormOn to safer yet uncertain planes.

A delight on our TV screens,Tsunami, overnightYou have become a mortal fright.We dare no more entertainFaith on this lonely oasisOf the cosmos, where till you cameCertainty was our walking stick.

Roofless in these wintry nights,While we shiver on shaky heightsOf temporary comfortAway from the seas,A tsunami surges in our heartsTo sing and roar an ancient song.

A song of wisdom we forgotIn our haste for false comforts,Rampage for wealth and mightPowered by false sense of right,Blood for blood we paid,Head for head we reapedAnd shamed the beasts we caged.

For we were cocksureAll morns are full of sunshineJust made for our comfort,For we took it grantedParadise was our right,

Till you came, Tsunami,

With your teaching stick.

We call you an act of God

And yet pursue our erstwhile wont

As though it is all that He wants.

We count the pennies lost

As we rummage our flattened coasts

And rebuild the resorts lost

Shedding tears for have-nots.

Lo, bereft our inside lies

Lost of the Light that shines

Tsunamis and the like

Alike like sunshine and delight.

Teach us, tsunami, again

Waving your powerful whip

That shine and cloud are alike,

So are feared death and birth,

In the bosom of the Lord

Where breeze and hurricane originate.

Sing your song again and again

To our mortal deafness

So we hearken

To the Godness we are,

So we don’t shiver

And mourn when again

Our morns fail to shine.

Make us sing this song,

Again and again,

So we shall face

With a tight upper-lip

The destiny of the dinosaurs

If He so wills.

For, we then no more fear

Extinction on this oasis

As we sure will survive

As the spark that shines

The world and the tsunami you.

– Madathil Rajendran Nair

August 28, 2005


StressCoping better with life’s challenges

What causes stress?Feelings of stress are caused by the body’s instinct to defend itself. This instinct is good in emergencies, such as getting out of the way of a speeding car. But stress can cause physical symptoms if it goes on for too long, such as in response to life’s daily challenges and changes. When this happens, it’s as though your body gets ready to jump out of the way of the car, but you’re sitting still. Your body is working overtime, with no place to put all the extra energy. This can make you feel anxious, afraid, worried and uptight.

What changes may be stressful?Any sort of change can make you feel stressed, even good change. It’s not just the change or event itself, but also how you react to it that matters. What’s stressful is different for each person. For example, one person may feel stressed by retiring from work, while someone else

may not. Other things that may be stressful include being laid off from your job, your child leaving or returning home, the death of a spouse, divorce or marriage, an illness, an injury, a job promotion, money problems, moving, or having a baby.

Can stress hurt the health?The stress response is the body’s way of protecting you. In emergency situations, stress can save your life – for example, giving you extra strength to defend yourself, or spurring you to slam on the brakes to avoid an accident. But beyond a certain point, stress stops being helpful and starts causing major damage to your health, your mood, your productivity, your relationships, and your quality of life.

The following table lists some of the common warning signs and symptoms of stress:

Stress Warning Signs and Symptoms

Cognitive symptomsl Memory problems l Inability to concentrate l Poor judgment l Seeing only the negative l Anxious or racing thoughts l Constant worrying

Emotional symptomsl Moodiness l Irritability or short temper l Agitation, inability to relax l Feeling overwhelmed l Sense of loneliness and isolation l Depression or general unhappinessl Problems with relationsPhysical symptomsl Aches and pains l Diarrhea or constipation l Nausea, dizziness l Chest pain, rapid heartbeat l Loss of sex drive l Frequent colds l Headachesl Shortness of breathl Stiff neckl Upset stomachl High blood pressurel Weight gain or loss

Behavioral symptomsl Eating more or less l Sleeping too much or too little l Isolating yourself from others l Procrastinating or neglecting responsibilities l Using alcohol, cigarettes, or drugs to relax l Nervous habits (e.g. nail biting, pacing)

Submitted by: Dr. Rima Al-Adsani, Family Medicine Department, Ahmadi hospital


The more signs and symptoms you notice in yourself, the closer you may be to stress overload.

Keep in mind that the signs and symptoms of stress can also be caused by other psychological and medical problems. If you’re experiencing any of the warning signs of stress, it’s important to see a doctor for a full evaluation. Your doctor can help you determine whether or not your symptoms are stress-related.

What can be done to manage the stress?

You may feel like the stress in your life is out of your control, but you can always control the way you respond. Managing stress is all about taking charge: taking charge of your thoughts, your emotions, your schedule, your environment, and the way you deal with problems.The first step is to learn to recognize when you’re feeling stressed. Early warning signs of stress include tension in your shoulders and neck, or clenching your hands into fists.

The next step is to choose a way to deal with your stress. One way is to avoid the event or thing that leads to your stress--but often this is not possible. A second way is to change how you react to stress. This is often the best way.

Tips for dealing with stress:

l Don’t worry about things you can’t control, such as the weather.

l Prepare to the best of your abil-ity for events you know may be stressful, such as a job interview.

l Try to look at change as a posi-tive challenge, not as a threat.

l Work to resolve conflicts with other people.

l Talk with a trusted friend, family member or counsellor.

l Set realistic goals at home and at work.

l Exercise on a regular basis.

l Eat well-balanced meals and get enough sleep.

l Meditate or participate in some-thing you don’t find stressful, such as sports, social events or hobbies.

l Exercise is a good way to deal with stress because it’s a healthy way to relieve your pent-up energy and tension. It also helps you get in better shape, which makes you feel better overall.

l Deep relaxed breathing can helps you get plenty of oxygen when you lie down on a flat surface, place a hand on your

stomach, just above your navel,

then place the other hand on your

chest, breathe in slowly and try

to make your stomach rise a little,

hold your breath for a second,

breathe out slowly and let your

stomach go back down.

l Meditation is a form of guided

thought which can take many

forms. You may do it with exercise

that uses the same motions over

and over, like walking or swim-

ming by practicing relaxation train-

ing, by stretching or by breathing

deeply. l Relaxation training: It is

easy by starting with one muscle,

hold it tight for a few seconds then

relax the muscle, then do this with

each of your muscles.

l Stretching can also help relieve

tension: Roll your head in a gentle

circle. Reach toward the ceiling

and bend side to side slowly. Roll

your shoulders.

In case of additional needed help

of possible medical intervention

for treating any of the physi-

cal symptoms of stress, such as

anxiety-depression, please don’t

hesitate to contact your family

medicine doctor.

History of camels

Camels first came on the animal scene during the Paleogene Period of the Cenozoic Era, 65.5 to 23.0 million years ago, evolving in North America and later spreading to Asia. Domesticated between 3,500 and 3,000 years ago, they have played an important role in the history of the Middle and Far East, serving as beasts of burden as well as being an important source of food and material.

Camels can live up to eighty years, although work camels are most often retired at the age of twenty-five. Fully grown adults can reach heights of

1.85m at the shoulder and more than 2 meters at the hump. Camels weigh between 250 and 650 kilograms depending on the species and the gender. They are referred to as ‘ships of the desert’ due to their use as pack animals in the long and harsh desert crossings and their back and forth rocking movement when they walk.

Approximately 15 million camels exist today as domesticated animals in Africa, the Middle East, and Asia, and about a thousand wild camels still remain in the Gobi Desert. Australia also has a very large feral population of camels, estimated at over one million animals, which were originally brought to the continent as a means of transportation but are now considered a pest.

The difference between Bactrian and Dromedary camels

The word ‘camel’ actually refers to any one of six camel-like animals found in the family Camelidae. Two of the six are the well known camels with either one or two humps, while the other four include species found in South America including the llama, alpaca, guanaco, and vicuna. All come in a range of colours, from light beige to black; black camels are more rare and as such, are often bred for show. However, in some places, black camels are considered unlucky.

The non-South American species belong to the genus Camelus and are even-toed hoofed animals. The camel with one hump is a Dromedary, while the one with two humps is a Bactrian Camel. Bactrian camels are generally larger and heavier, and found in central and east Asia, while Dromedaries are typically found in Africa and the Middle East.

Bactrian camels are suited for the dry cold winter and spring months in Asia and prefer temperatures of less than 21° C. Their suitability to cold weather is one of the reasons why the caravans that crossed the Gobi desert did so in winter only. They are also able to exist at high altitudes of up to 4000m. above sea level.

It is possible for the Dromedary and Bactrian camels to breed with one another; the result is a hybrid known as a Tulus or Bukhts. The hybrids are normally larger than both parents and can have either one long hump or one small and one big hump. Popular in Kazakhstan, the Bukhts are then bred back to Bactrian camels to produce prized riding camels.

Use in Arabia

Known as Ata Allah (God’s gift) in Arabic, the camel is considered one of the symbols of the Arab world. Although camels did play an important role in the past in the daily life of the Bedouins, today the camel is prized more as a tourist attraction, a racing animal and a sentimental possession. However, the camel is still important as a work animal in parts of Africa and Asia, transporting loads and working in the fields as plow animals.

In all areas where camels are found, they are used for meat and milk, with the best meat coming from young males. In Arabia, camel meat is a delicacy and is gaining in popularity, particularly in areas where it is difficult to raise other meat sources such as sheep or cattle. Camel meat has been compared to that of beef, although somewhat tougher to chew. Camel’s milk is drunk warm

CamelsFascinating Facts


and frothy and is more nutritious than cow’s milk, containing more potassium, iron, and vitamin C. In Ethiopia, the milk is considered an aphrodisiac.

Camel hair has also traditionally been used in Bedouin weaving; being finer and softer than goat’s hair, it was, and still is, used mostly for clothing. Also, as mentioned, camels were the chief means of transportation across the desert, carrying personal belongings as well as trade items such as frankincense.

Physiology of the camel

The camel has adapted to survive in its environment and the Dromedary in particular has many interesting physiological features that allow it to live in the harsh desert environment. For instance, it can adjust the temperature of its body up to 6 degrees in order to prevent unnecessary loss of liquid through sweating. It can also selectively cool its brain, keeping the brain at a lower temperature than the rest of the body. In addition, the fur acts as insulation against the heat while the kidney is able to concentrate the urine to a syrupy consistency, thereby reducing the amount of water excreted. Finally, exhaled air is cooled in the nasal passages and the condensed water is collected.

It is a myth that the camel’s hump(s) is used to store water. In fact, the humps are made of fatty deposits which are used as an energy source when food is scarce. As the hump decreases it becomes soft and flops to one side. It can return to the normal, upright position after just a few days of grazing. Camels are able to loose up to 40% of their body weight before becoming distressed and can go up to seven days without drinking. They can consume up to 21 gallons of water within minutes, a feat which would cause osmotic problems in all other animals, but

is not a problem for the camel due to the fact that the water is slowly absorbed from the stomach and intestines. It can also drink water which would be too salty for most other animals.

Camel racing

Camel racing is popular throughout the Middle East and although not known for speed, camels can attain short bursts of up to 40 mph and can maintain a speed of 25 mph for long distances. In the past, camels were jockeyed by small children, but allegations of human rights

abuses have led to the replacement of children with robots. In Kuwait, camel racing takes place weekly and although there are no winnings, the glory of winning is worth the investment.

Scientific Classification

Kingdom: AnimaliaPhylum: ChordataClass: MammaliaOrder: ArtiodactylaFamily: CamelidaeGenus: CamelusLinnaeus, 1758



Spreading AWAREnessThe AWARE Center promotes positive interaction

The AWARE Center is a non-profit NGO with a mission of promoting positive relations between Westerners and Arabs through the organization of social activities and information services focusing on the Arab and Islamic culture. The concept for the center came about when a group of Kuwaiti students studying in the United States graduated and came back home. Wanting to spread the ideas of hospitality and cultural exchange that they had experienced as international students, upon their return they worked with some of the western expatriates to create the AWARE (Advocates for Western Arab Relations) Center.

The Center, which was established eight years ago, is an ideal starting point for newcomers to the country. The Kuwaiti Digest met with Dr. Ebrahim Adsani, General Manager of the AWARE Center and he explained the philosophy behind the center. “We wanted to put together an organization working with the Western expatriate population in Kuwait”, he explained, “The idea is to bring together both groups to learn from each other and share their culture and religion, and to familiarize expatriates with Kuwaiti and Islamic society”.

Not only for those just arriving in the country, the center also offers a chance for anyone living in the country to meet new people, share their ideas and experiences, and learn more about the region in general and Kuwait in particular. “It’s easy to remain isolated and not do anything when you’re living in a foreign country,” said Adsani, “but the AWARE Center gives Westerners an opportunity to live

and interact with Kuwaiti cultures and tradition. It’s an opportunity to bridge the gap between old and new Westerners in the country as well as between Westerners and Arabs.”

The AWARE Center puts on many events and lectures for Westerners and Arabs on issues ranging from basic safety and current political topics to issues concerning the arts and the environment. Many topics are presented in lectures and in diwaniya formats, where

a leader provides information on a topic that is then discussed in a sort of round-table format by the participants. Recently, one of the weekly diwaniya topics was led by Albara Alwuhaib and focused on some of the non-governmental organizations operating in the country, such as The Kuwait Society of Engineers, the Kuwait Red Crescent Society, and the Kuwait House for National Works.

According to Alwuhaib, his experience volunteering for the various NGOs was driven by a desire to do something for his country and community and he has developed as a person as a result. Other lecture and diwaniya topics have also included Applied Behavior Analysis, Home Safety and Fire Prevention, The Art of Persian Carpets, Traffic Safety, Islamic Architecture, and The Status of Sea Turtles in Kuwaiti Waters. “Lots of people want to cross the barrier and cultural

Attendees at one of the regular diwaniyas

Dr. Ebrahim Al-AdsaniGeneral Manager


exchange is the most effective way to make holes in that barrier,” said Adsani.

The Center also hosts brunches and dinners introducing Westerners to Middle Eastern cuisines, a cultural bazaar where a variety of clothes, perfume, books, jewelry, and other items are bought and sold, and Arabic courses for improving Westerners’ Arabic language skills. In fact, the bi-weekly Arabic language courses are relatively inexpensive and well attended. In addition, local schools, organizations, and embassies are encouraged to work jointly with the center on a variety of activities. “The AWARE Center does a lot of work with the various Western embassies,” said Adsani. “They provide a place for the embassies to bring their communities of families for fun and presentations—it puts the communities at ease. The embassies can only do so much, but when the citizens of a country make the effort to involve people in their lives and culture, it really helps.”

In addition to events at the centre, tours are also arranged to local attractions including camel racing, the Kuwait Museum, the Tareq Rajab Museum, desert camping, boat rides around Kuwait, and the Grand Mosque. “For many people who come to Kuwait, it’s usually the religion and culture that set them apart—tours of the Mosque help them to let down their preconceived ideas and become familiar with Muslim traditions,” explained Adsani. The tours are also a great opportunity to meet people and make new friends.

The founders of the AWARE Center hope to spread their idea to other nations; “The spirit of this could be replicated anywhere,” said Adsani. As such, there is hope to be able to provide paid summer

internships for overseas students working at the AWARE Center coordinating programs. “We need to keep students involved so they can continue to lead this dialogue and exchange between cultures,” said Adsani. “The most important thing for me,” Adsani said, “is being able to get both Westerners and non-Westerners involved in the project, that’s really the key to reversing lots of the prejudices involved. We need to diffuse the harmful rhetoric and educate people about each other.”

The proven success of the AWARE Center in Kuwait can be an example for other countries in the region and the establishment of other centers will go far in increasing communication and understanding, thereby decreasing stereotypes, pre-conceived notions, and prejudices. Appreciating the differences between societies and cultures while focusing on the commonalities will do much to ensure peaceful coexistence, not to mention enhance the chance of developing true friendships.

The lobby at the Center

AWARE Center

Mission: to promote positive relations between Westerners and Arabs by organizing social activities and information services related to Arab and Islamic culture. The AWARE Center is a non-profit, non-governmental and non-political organization.

Values:

l AWARE will concentrate its activities among Westerners irrespective of their citizenship and gender.

l AWARE will abide by the Arab Islamic values and ethics, as well as a moderate approach in all its activities.

l AWARE will remain as non-political, non-profit, non- affiliated to any particular school of thought in its nature.

l AWARE will ensure quality services and maintain high standards in its business.

l AWARE will adopt English as its official language.

www.aware.com.kw


The Pillars of the Hajj

The basic pillars in performing the Hajj consist of:

Ihram. This is a state where one has the intention of performing the pilgrimage. The dress of white cloth represents this state.

Tawaf. This is the action of circumambulating the Ka’ba seven times in a counterclockwise direction.

Sa’i. The action of walking/running between Mount Safa and Mount Marwa, symbolizings Hagar’s search.

Arafah. Known as the Big Day of the Hajj, it is the time spent on the field of Arafat on the 10th day of the month.

The Essentials of the Hajj

The History of the Hajj

The Hajj, the annual pilgrimage to Mecca, is the largest pilgrimage in the world with approximately 2 million participants each year. As the fifth pillar of Islam, it is an obligation for all Muslims to carry out at least once in their lives if they are able-bodied enough and financially able to do so. Occurring between the 8th and the 13th days of the 12th month (Dhu al-Hiijah) of the Islamic calendar, Hajj is based on an ancient pilgrimage.

According to historians, certain elements of the Hajj can be traced back to the time of Abraham, approximately 2000 BC. Abraham was ordered by God to leave his wife, Hagar, and his infant son, Ismael, in the desert. When Ismael became thirsty, Hagar ran back and forth between two hills, desperately seeking water. In the meantime, Ishmael hit his foot on the ground in frustration and a spring miraculously appeared. This source of water exists today and is known as the Well of ZamZam. From this time on, tribes from around the Arabian Peninsula would pilgrim to Mecca

every year. The faith of the pilgrims varied and the Ka’ba was adorned with hundreds of idols representing totems of the different tribes. Later, symbols of Jesus and Mary could also be found. Today, Muslim

historians refer to this time as the “Days of Ignorance”, and now, only Allah is worshipped. Indeed, only Muslims are allowed within the city limits of Mecca.

Prophet Mohammed performed his first and only Hajj in 632 AD. It was also the first Hajj in which exclusively Muslims participated. At this time, Mohammed rid the Ka’ba of all idols and declared it the house of Allah. Today, the Ka’ba is the holiest place for Muslims and Muslims around the world pray in the direction of the Ka’ba.

The Sequence of the Hajj

Ihram

Pilgrims normally travel to Mecca in groups as a symbol of the universal unity of Islam. Upon arriving near Mecca, they change into simple Ihram clothing (two pieces of white cloth for the men, one to be attached around the waist and the other to be wrapped around the shoulder, and either regular conservative clothing or a simple white dress for women) at the Mikat and say a prayer of intention (Talbiyah). The uniform clothing emphasizes


the equality of all in the eyes of Allah and symbolizes purity and absolution of sins. In the state of Ihram, the pilgrims may not clip their nails, cut or pluck any hair, use scented products such as deodorant or toothpaste, or have any sort of sexual contact. They should also avoid harming people or animals and should refrain from talking unless it is absolutely necessary.

Tawaf

Known as a Hajji, the pilgrim then proceeds to Mecca and the Masjid al-Haram, the sacred mosque, on the 8th day of the month and circles the Ka’ba in a counter-clockwise direction seven times, kissing the Black Stone on the Ka’ba each time. Due to the amount of people within the courtyard of the mosque, it is not possible for everyone to actually kiss the stone. Instead, it is sufficient to point at it while circling. The circling of the Ka’ba is known as Tawaf.

Sa’i

After Tawaf, the pilgrim then proceeds to the Place of Abraham,

enacts Hagar’s search for water and

runs or walks seven times between

the hills of Safa and Marway. This

is known as Sa’i. The area between

the hills used to be in the open but

it is now enclosed by the mosque.

near the Ka’ba, to offer prayers.

Again, due to the large number of

people, it is not always possible to

approach the area, so prayers may

be offered anywhere in the mosque.

After the prayers, the pilgrim re-

Aerial view of the Ka’ba


It is also air-conditioned and lanes have been created to manage the flow of people, thereby reducing the number of accidents; in the past, pilgrims have been crushed to death in this area. Water from the Zamzam well is drunk by pilgrims as part of the ritual and is available from several locations within the mosque. It is believed that anyone who drinks from the Zamzam well will be cured of all illnesses and diseases.

Mount Arafat

On the 8th day of Dul-Hajj, the pilgrims proceed to Mina, where they overnight in tents. The following morning, they leave for Mount Arafat and stand in vigil until sunset near a hill where the Prophet Mohammed gave his last sermon. This day is considered the most important of the entire Hajj. Although there is no specific prayer for this day, most pilgrims spend the day supplicating Allah and in quiet self-reflection. An important point to note is that if a pilgrim does not spend the afternoon, even for a brief period of time, on Mount Arafat, then their pilgrimage is considered invalid. After sunset, the pilgrims proceed to Muzdalifah, gathering 49 pebbles along the way for the following day’s ritual of stoning the Devil (Shaitan). They either overnight on the ground at Muzdalifah, or return to Mina.

Ramy Al-Jamarat

On the 10th day of Dul-Hajj, the first day of Eid ul-Adha starts, and the pilgrims perform Ramy Al-Jamarat, the symbolic act of throwing stones at the Devil. The ritual symbolizes Abraham’s dilemma when asked by God to sacrifice his son; the Devil challenged Abraham and Abraham refused three times; three stone pillars represent these three refusals, and each pilgrim must hit each pillar with a stone at least seven times. Pilgrims first stone the largest pillar, know as Jamrat’al’Aqabah, and later stone all three. In 2004, due to safety

concerns, the three pillars were incorporated into long walls with troughs at the bottom to collect the stones.

Eid Al-Adha

After the stoning, an animal is sacrificed to represent the mercy that God showed Abraham by replacing Ismael with a ram. In the past, pilgrims slaughtered the animals themselves, or at least witnessed the slaughtering. Today, however, pilgrims can buy a “sacrifice voucher” in Mecca before the Hajj begins. The animal is then slaughtered in the name of the pilgrim without the pilgrim being present. A single sheep can be sacrificed for one pilgrim or a cow for seven pilgrims. The meat is then processed and shipped around the world to various charities. The four-day Eid ul-Adha festival, celebrated by Muslims around the world, involves similar sacrifices. After the sacrifice, the male pilgrims shave their head while the female pilgrims cut off a small amount of their hair. The night of the 10th is spent at Mina.

Tawaf Al-Ziyarah

On the 10th or the 11th day, the pilgrims return to the Masjid al-Haram in Mecca to perform the obligatory Tawaf known as Tawaf al-Ziyarah or Tawaf al-Ifadah. It

symbolizes the eagerness to show love to God.

Ramy al-Jamarat

During the afternoon of the 11th and the12th, the pilgrims again throw seven pepples at each of the three Jamarat in Mina. On the 12th, all pilgrims must leave Mina before sunset and return to Mecca.

Tawaf al-Wada

Before leaving Mecca, the pilgrims perform the final Tawaf known as the Tawaf al-Wada. They may then travel to Medina, where Mohammed’s tomb is located in the Mosque of the Prophet or they return home.

The Virtues of the Hajj

The virtues of performing the Hajj are many including spiritual contentment through the forgiveness of all past sins, the pleasing of Allah, the bonding with other pilgrims, and the sharing of experiences. The Hajj is the pinnacle of worship in Islam and gives Muslims from different cultures the chance to know and understand one another. As the ultimate act of worship, the Hajj is a demonstration of one’s love and obedience to Allah. Performing the Hajj properly is said to give the Hajji a clean slate by bringing him back to the state of a newborn child.

Mount Arafat


Brazil’s gas sector continues to expand. In early March, the country’s ruler, President Luiz Inacio Lula de Silva, signed its first ever Gas Law, enacting the long-awaited legislation with the aim of attracting private investment and competition to Brazil’s natural gas sec-tor. The new law provides legislation for the commercialization of natural gas and promotes a more transparent and neutral framework for investors.

Both Brazil’s oil and gas sectors have developed under the same regula-tory framework set out in the nation’s Petroleum Law 1997, which provided for a new hydrocarbon exploration and production concession regime. Other activities, such as import/export and the transportation and processing of oil and gas were covered only to the extent that any company established in Brazil was able to carry them out under the supervision of the country’s National Agency of Petroleum (ANP).

Under this system, gas transportation was subject to ANP authorization and was often perceived to be an anti-com-petitive system where little information on prices or capacity was made public.

Furthermore, the natural gas chain in Brazil is highly concentrated: state-owned Petrobras controls the whole-sale market and operates virtually all the gas transportation pipelines. On the supply side, the legal monopoly enjoyed by Local Distribution Compa-nies (LDCs) prevents end consumers from accessing the wholesale market directly.

The new Gas Law does not change the current upstream system, nor does it change the LDC monopoly rights. What it does is to create mechanisms and incentives to attract investment from new players and to develop the infrastructure needed to deliver the gas to the final consumer.

Natural gas and oil commercialization have completely different physical and financial drivers. While oil can be easily stored, shipped and transported via conventional methods, natural gas requires costly pipeline infrastructure and/or LNG facilities. Taking this into account, Brazil’s new Gas Law made the following changes to the previous system:

New Concession Regime: Although cross-border pipelines are still subject to the ANP’s discretionary authoriza-tion regime, under the new system the domestic transportation of natural gas is carried out by means of a 30-year concession, preceded by a tender co-ordinated by the ANP. The ANP is also coordinating a public consultation to determine actual demand for capacity and set the maximum applicable tariff. Once this is completed, the interested parties will commit to buy capacity. This process is similar to a book-build-ing (which is very common in IPOs) and will determine the applicable tarrif to be paid to the operator.

Investment in New Pipelines: Both the Brazilian government, via the Mniister of Mines and Energy (MME) and private companies are allowed to propose the construction and/or ex-pansion of pipelines. The government is now also able to use Public-Private Partnerships (PPPs) and/or utilize resources from specific public accounts to fund new pipelines or capacity.

Open Access: The recently introduced Gas Law provides for an express guar-antee of third party access to transport pipelines, subject to (i) an exclusivity period for new pipelines defined by the MME and (ii) a 10-year exclusivity period for existing pipelines.

Downstream

The Gas Law also introduces competi-

tion in the downstream sector by:

l Providing that any company estab-lished in Brazil may apply to the MME for authorization to import/export, store and process natural gas and to develop LNG activities in Brazil, and

l Introducing further flexibility in the downstream sector by giving consum-ers the right to construct a supply pipeline if the LDC is unable to do so. It further recognizes the self-producer and self-importer of natural gas (i.e. companies producing or importing natural gas for their own operations). In any case, the LDC will still be entitled to a fee for the operation and maintenance of the pipeline.

Apart from these incentive mecha-nisms, the Gas Law also gives the MME and ANP rights to take over the management of the supply of natural gas in the case of a shortage, subject to specific regulations being implemented at present.

The impact of this new item of legisla-tion is already being seen and felt in Brazil, with one newspaper,’ O Globo’ (‘The Globe’) , reporting in April that a private group was set to invest US$1.25 billion to build a combined project consisting of a LNG regasification plant supplying a 1,000MW gas-fired power station, to become operational in 2014. Also worth noting is the fact that Petro-bras reportedly has no direct interest in the venture.

Local experts were cautiously upbeat about the enactment of the new legisla-tion, with one analyst in Rio de Janeiro quoted as saying that while this was a relatively small step in legislative terms, “at least we have a regulatory frame-work now in place.”

Brazil’s New Gas Law Key features and prospects

Source by: Ivan Londres, Associate Lawyer, CMS Cameron McKeena


Investment, Administration and Marketing professionals have been the hardest hit. Infrastructure-related disciplines and Audit professionals see increased demand.

Dubai, UAE, July 12, 2008 –- The economic downturn has slowed recruitment activity in the GCC region significantly, with Dubai in particular seeing a fall in the number of vacancies advertised, though still retaining a sizeable share.

More discreet and confidential recruitment methods and a

Economic Downturn Reduces Recruitment Activity in the Gulf

shift to lower cost recruitment channels are also among the main trends highlighted in research carried out by Middle East online recruitment firm, GulfTalent.com.

The research shows that the percentage of Dubai-based vacancies advertised on the firm’s website constituted only 30% of all GCC-based positions advertised in the first half of the year, compared with 43% over the same period in the previous year. Kuwait and Bahrain have also been badly hit.

In contrast, Abu Dhabi has seen its percentage share of job

vacancies increase from 14% to 23%, while Qatar and Saudi Arabia have also seen similar increases in their share of vacancies.

The UAE overall may have seen an increase in the outflow of expatriates, with 26% of all job applications submitted by UAE residents targeting vacancies in other Gulf countries, compared to just 16% the previous year. Despite the increase, the outward mobility of UAE-based expats remains the lowest in the region, with the majority preferring to remain in the country.


Winners and Losers

Across the region, the fall in demand has been most acute in investment, administration and marketing functions. According to GulfTalent.com’s findings, demand for investment professionals, including private equity and portfolio management, fell by 48% in the first half of the year against the same period last year. For administration skills, demand fell by 47% while the demand for marketing skills slid by 46%.

But not all roles are suffering from a collapse in demand. Demand for infrastructure-related functions soared by 142%, reflecting massive spending by GCC governments this year on road, railway and airport projects. Demand for audit professionals also increased by 25%.

Demand changes are measured by the relative change in the number of CV searches conducted by employers and recruiters on GulfTalent.com’s online database. The survey also shows recruitment activity to be increasingly focused on mid level and senior professionals, with less experienced candidates receiving less attention.

Salary Trends

The research reveals that the value of expatriate salaries in the Gulf region has increased sharply in terms of their home currencies. Depending on the country of origin, the appreciation of dollar-pegged regional currencies over the past 12 months has been equivalent to an effective pay rise of between 10 and 20 percent.

The currency appreciation, coupled with low inflation, rising unemployment worldwide and reduced regional competition for talent, has eliminated any upward pressure on salaries, the findings show, suggesting that salaries will likely see little rise over the next 6-12 months.

Source: GulfTalent.com

Dubai 43% 30%

UAE (excl. Dubai) 14% 23%

Saudi Arabia 15% 20%

Qatar 9% 13%

Kuwait 10% 7%

Bahrain 7% 4%

Oman 2% 3%

2008 First Half 2009 First HalfVacancies Advertised Online:Breakdown by LocationVacancies Advertised Online:Breakdown by Location

Despite limited pay increases, some expatriates are seeing their saving potential increase relative to last year. This is particularly the case for professionals on fixed salaries based in Dubai and Doha, where residential rents have fallen by 20 to 40 percent, and for those whose home currencies have fallen most against the US dollar, such as UK and Australian nationals.

Future Outlook

Quoting forecasts by economists, the study anticipates regional economic growth to return to healthy levels in 2010 and employment activity to pick up as a result. It warns, however, that recruitment will take some time to reach its pre-downturn levels, with the price of crude oil being the key factor determining the speed of regional recovery.

Until then, with the volume of new jobs being created not matching the number of young nationals entering the workforce, companies can expect a tightening of regulations with regard to employment of nationals, the study argues.

GulfTalent.com’s research study was based primarily on an analysis of jobseeker and employer activities conducted on its online recruitment website, including a daily average of around 2,000 new candidate registrations, 10,000 job applications and 3,000 CV searches by employers and recruitment agencies using the website. The full survey report entitled “Recession and Employment in the

Source: GulfTalent.com

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