Spotlight on Kuwait Oil Company

The Kuwait Oil Company’s Main Office, located in Ahmadi, Kuwait Celebrating its 75th anniversary this year, the Kuwait Oil Company (KOC) continues to develop and innovate, helping to supply the world with its vital oil and gas needs through the exploration, production, and transportation of these crucial natural resources. In addition to onshore activities, KOC is also exploring offshore and is investing in state-of-the-art technology to increase oil recovery.

Operations

The twelve major oil fields within the State are widely dispersed and can be divided into three groups: North, West, and South & East. Most wells are drilled vertically to variable depths; in South & East Kuwait the depth is usually of about 7,000 – 8,000 feet, while the maximum depth of North Kuwait wells may reach to 22,000 feet in the Jurassic period layer, where super light crude of up to API 52 is found together with free gas. The discovery in 2005 of super light crude justified the Company’s exploration activities, while the long-awaited and anticipated discovery of natural gas in 2006 fulfilled a nation-wide dream of one day becoming a member in the gas-producing countries.

Heavy Oil in Kuwait

Kuwait Oil Companies 2030 Strategy calls for 4.0 million bpd by the year 2020, with 8% of this total, equivalent to 320,000 bpd, coming from the North Kuwait heavy oil fields. Spread over an area of 1200 km2, with a density of between 11 and 18 API and viscosity of 200-1200CP at 100?F, the heavy oil of the Lower Fars is highly challenging, both technically and economically. Optimization of any project requires effective integration of the value chain from production to local refining or sale on the international market, and KOC is working with the other K-Companies to ensure efficiency.Heavy oil in Kuwait has a high sulfur content, around 5%wt, impacting both the refining capability and the operating costs.

Natural Gas in Kuwait

Natural gas was first produced at an Early Production Facility in 2008. Currently producing 73 mmscfpd, plans are underway to increase production through building additional facilities to 600 mmscfpd by 2011 and 1 bscfpd by 2015. The use of innovative technologies which optimize recovery, while at the same time are economically feasible, is key to the success of the project.

The Kuwait Oil Company has a goal of a maximum of 1% gas flaring by the year 2012, and networks are being put in place that are flexible enough to maintain this target at all times. The goal is to have production of more than 2 bscfpd of total gas, both free and associated, by the year 2015, with all gas being fed to the LPG if possible. By-products will include 6000 tons/day of ethane, propane, and butane and 760 tons/day of sulfur. An aggressive, capital intensive gas exploration program will be undertaken during the next five to ten years and will include deeper horizons in the new and existing fields. This aggressive approach, combined with a well integrated and managed gas value chain and the use of new technology will help the Kuwait Oil Company achieve its ambitious goals, thereby ensuring a solid energy future for the State.

The importance of HSE

Employee safety, health, and minimizing the negative impact on the environment are of primary importance to KOC. According to international statistics, more than 80% of incidents are caused by unsound personal behavior. We consider it our duty, therefore, to keep our employees knowledgeable of proper safety measures and precautions through on-going intensive awareness campaigns. Based on this corrective concept, the Company issued HSE Management System for the first time in 1995, and the Company’s HSE Group monitors and guides the implementation of programs including the elimination of air pollutants, the improvement of water quality, implementation of waste recycling, re- introduction of natural flora and fauna to the oil fields, reduction in sand encroachment, and installation of safety monitors in cars.