Farouq Hussein Al-ZankiChief Executive Of�cer
Dialoguewith CEO
In the beginning of my speech, I would like to congratulate, on behalf
of myself and all the Kuwaiti oil sector’s personnel, HE Dr. Mohammed
Mohsen Al-Busairi, Oil Minister, State Minister for Parliament Affairs,
and Chairman of KPC board of directors, on the trust that HH the Amir
Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah and HH the Prime Minister
Sheikh Nasser Al-Mohammed put in him to undertake the ministry’s
responsibility.
I’d like further to congratulate you, dear colleagues, on successes you
achieved. These successes have been epitomized in the profits which
were fulfilled during the financial year of 2010/2011 as it reached KD2
billion. These profits registered a hike estimated to 143.4%. This hike
is 100% more than its counterpart of last year. Moreover, the marginal
profit reached 6.9% and the revenue of shareholders is estimated to
12.0% as well as the revenue of the invested capital worth 11.5%.
Indisputably, these consecutive successes are the result of incessant
efforts, constructive cooperation, non-stop work and the spirit of
teamwork stemmed out from people have estimated the responsibility
that they shoulder. Consequently, they have believed in the work they
undertake and achieved, as a result, success. Therefore, we are proud
of them and we bid them to be proud of what was accomplished last
year too. Additionally, we urge them to exert more efforts to achieve
the desired ambitions of our nation and fulfill the pivots and plans of
2030 strategy which is aimed to achieve new specific leap for the oil
sector and our beloved Kuwait.
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In This Issue..
By Al-Khat Printing Press
�Events
In This Issue
Training & Career Development
Compensations Window
KPC News Team:Media Relations Dept.
Fax: 24994991Email: [email protected]
HE Dr. Mohammed Al-Busairi, Oil Minister, receiving congratulators
Waleed Al-Abduljilil: Keeping work in progress under the tragic incidents of Japan re�ected the deeply-rooted Kuwaiti-Japanese bilateral relations
Natural gas is oil’s alternative
2
E v e n t s
HE Dr. Mohammed Mohsen Al-
Busairi, Oil Minister, State Minister
for Parliament Affairs and Chairman
of KPC board of directors received on
Sunday May 15, 2011 at the oil com-
plex’s Diwaniya congratulators from
the oil sector’s personnel besides dig-
nitaries. The congratulators extended
their delight with the trust that HH
the Amir Sheikh Sabah Al-Ahmad
Al-Jaber Al-Sabah put in the minister
to undertake the responsibility of Oil
Ministry.
It is mentioned that a large number of
senior officials from the oil sector and
personnel from the corporation and Oil
Ministry attended the reception party.
HE Dr. Mohammed Al-Busairi receives congratulators in the oil complex's Diwaniya
3
Under the patronage of Deputy Pre-
mier of Economic Affairs, State Min-
ister for Housing and Development
Affairs Sheikh Ahmad Al-Fahd, Ku-
wait Petroleum Corporation (KPC)
took part in the 11th Financial and
Islamic Institution Conference which
was held in the Regency Hotel on
Wednesday April 27, 2011.
In his inaugural speech, Al-Fahd
made clear that the oil revenue is still
the key financer for the country’s
general budget. This however caused
some deformations in the economic
structure which should be handled as
fast as possible; otherwise this will
lead to negative impacts within the
coming few decades.
Indicating the aforesaid results are
confirmed by the international con-
sultations houses, Al-Fahd said, “We
11th int’l financial and Islamic institutions confab inaugurated in participation of KPC
Al-Fahd: Oil revenue is the key provider for the country’s general budget
are rehabilitating and reinforcing the
concept of development through ap-
proving legislations and laws to iden-
tify the general frame of the plan.”
He added this step is considered the
beginning of the road for much bril-
liant future since the plan addressed
the shortage in the educational and
healthful infrastructure which the
country suffers from.
4
E v e n t s
Deputy Chairman of board of di-
rectors and Chief Executive Officer
of Kuwait Petroleum Corporation
(KPC) Mr. Farouq Al-Zanki pro-
mulgated that the corporation has
achieved lucrative profits worth
CEO announces the profits of the fiscal year 2010/2011
KD2 billion with an estimated hike
of 143.4% over the profits expected
in the budget, with a 100% increase
compared to the previous year.
Thus, the marginal profit which
KPC achieved is 6.9% and the due
revenue of shareholders is 12.0%;
whereas the revenue of the invested
capital is 11.5%.
It is worth mentioning that the op-
erational profits reached 84.8% of
the net profit; whereas the remaining
percentage, which is 15.2%, repre-
sents the net revenues of investment
and other revenues.
Moreover, the rate of growth in rev-
enues, property and assets reached
21.8%, 13.6% and 16.9% respec-
tively. In addition, KPC investments
in the capitalistic projects reached
KD1.6 billion.
Indisputably, these achievements
have been fulfilled thanks to the
devoted efforts of the oil sector’s
personnel who spared no effort to
accomplish this concrete success.
For example, some of those person-
nel sought to reduce the suspension
days to perform the scheduled and
non-scheduled maintenance, others
were keen on improving the quality
of production and products as well,
and some other personnel sought to
achieve direct investments to fulfill a
financial and operative added value.
Moreover, others searched for pen-
etrating markets of high revenue, the
matter led to improving performance
and achieving distinguished results
this year.
Kuwait Petroleum Corporation (KPC) took part, through
a higher delegation headed by its CEO Mr. Farouq Al-
Zanki, in Offshore Technology Conference which was
held on 2-5 May, 2011 in Houston, Texas City.
In his inaugural speech, Al-Zanki expressed his pleasure
with participating in the conference, posing at the same
time the corporation’s visions about building the energy
future under the international increasing need to sustain-
able energy resources. He pointed out that energy securi-
ty depends focally on two substantial elements; competi-
tive prices and perpetual supplies particularly under the
ostensible hike in crude oil prices internationally.
He underscored the international interest to develop new
kinds of fuel used to generate electricity under the inces-
sant hike in fossil fuel prices as well as its participation in
decreasing the threat of the global warming phenomenon;
the matter has given back hopes to achieve international
development in nuclear energy field.
Commenting on the essential role which KPC plays un-
der the international turmoil and unrest taking place re-
cently, Al-Zanki stressed KPC is part of the world and it
pays devotedly special concern to the future of energy;
Through higher delegation, in Offshore Technology confab , Houston Texas
Al-Zanki poses KPC visions about building new energy future
therefore, “we are committed to fulfilling our role in
the international market to provide a reliable product.
This concern puts on the shoulders of the Kuwaiti oil
industry big challenge requires diligent efforts to ac-
complish it through investing in the field of developing
the technology of exploration and drilling. Accordingly,
the corporation seeks dutifully to reinforce its relations
with the international oil companies."
5
Mr. Hashim El-Rifaai, Managing Director
of Planning and Chairman of Oil Develop-
ment Company’s (ODC) board of direc-
tors, received in his office Monday morn-
ing May 2, 2011 a media delegation from
Turkish Milli Gazette newspaper to hold an
interview about the Kuwaiti-Turkish rela-
tions.
The delegation posed several questions con-
cerning oil prices, their hike and impacts on
the international economic growth. In ad-
dition, they underscored projects concern
mutual Kuwaiti-Turkish collaboration in
oil field currently and in the future.
Mr. Hashim and the delegation exchanged
cordial speech during the meeting.
To shed light on common projects between the two countries
Hashim El-Rifaai receives Turkey’s media delegation
Financial and Administrative sector orga-
nized, in coordination with Earnest Young,
which is an international Auditing Co, an
introductory lecture for its employees to let
them be acquainted with the new programs
of improving the sector’s employees’ effi-
ciency on Monday April 18, 2011 at the au-
ditorium of the oil complex.
This lecture emerges from KPC’s keenness
on rehabilitating the national personnel to
enable them to confront the challenges of the
future under the 2030 development strategy.
On her part, Mrs. Hanaa Al-Sumai’e, Deputy
Managing Director of Financial and Admin-
istrative Affairs sector, welcomed the atten-
dants indicating that KPC seeks necessarily
to develop the organizational structure of its
departments and the entire oil sector. Thus,
it has approved a number of modifications
on the policies of these departments. Conse-
quently, the corporation has initiated apply-
ing the project of manpower which depends
focally on holding an elaborate comparison
for the most significant procedures taken in
this domain between KPC and its subsidiar-
ies and Equate Co.
Meanwhile, Mrs. Ebtihaj Al-Wazzan, Man-
power Studies Department Team Leader,
stressed the importance of this project in the
corporation and the entire sector, clarifying
the coming phase from the project will com-
mence with assessing the employees’ com-
petence to identify the quantity of knowl-
edge and information they have. The project
will be carried out through new methods can
identify efficiently the required proficiencies
for each specification starting new graduates
up to managers and team leaders so as to
establish capabilities cope with the require-
ments of their duties.
It is mentioned that the lecture underlined
four explanatory proposals of officials from
Earnest Young Co that is in charge of follow-
ing up the project.
On mechanism of executing its program of developing efficiencies
Financial & Admin Affairs sector organizes introductory
lecture for its staff
6
E v e n t s
Kuwait Petroleum Corpora-
tion (KPC) and Kuwait Institute
for Scientific Research (KISR)
signed five contracts of common
research projects in oil refining
field to assist Kuwait National
Petroleum Company (KNPC) on
Wednesday May 11, 2011.
This step is stemmed out from a
general cooperation agreement
signed between KPC and KISR in
April 2005 to confirm the keen-
ness of KPC and its subsidiaries
to achieve desired goals through
applying the most-functioned
technologies related to the opera-
tions of preserving environment
and protecting the health and
safety of its personnel as well as
the surrounding community.
Mr. Hashim El-Rifaai, Managing
Director of Planning, said KPC
pays special interest to research
and development field in order to
develop the operational process-
To achieve a number of research projects
KPC signs cooperation protocol with KISR
es in the Kuwaiti oil sector besides
patronizing the related researches
and developmental activities.
Thus, the corporation seeks al-
ways to apply creative techniques
in the entire oil sector’s operations
which include comprehensive and
long-term programs for investing
in research and development field
for the good of its objectives allot-
ted in the 2030 strategy.
He stressed the importance of
strengthening cooperation and
coordination with research insti-
tutions and authorities inside and
outside Kuwait to exchange infor-
mation and experiences related to
the oil industry so as to establish
the national self-abilities. This
will also enable the Kuwaiti oil
sector to take part in implement-
ing related programs and projects
serve thoroughly the Kuwaiti oil
sector. However, these goals are
included as items in the contracts
signed with KISR, noted he.
Meanwhile, Dr. Naji Al-Mutairi,
KISR Manager, said, “Such con-
tracts have crowned the inces-
sant cooperation for long years
between KISR and the oil sector
particularly in issues concerning
oil refining in order to acquire the
best methods in such field to im-
7
prove the efficiency of production
and thus it is easy to get oil prod-
ucts pursuant to the changeable
international criteria and speci-
fications particularly in the envi-
ronmental side.”
He hailed the constructive cooper-
ation with KPC particularly with
KNPC as it is considered an illus-
trious model for the other institu-
tions of the country.
He detailed the issues included
in the five contracts as follows:
1- The overlapped influences of
hydrogen sulfide and chloride ions
on the shattering stress of acetynic
solid which resists rust.
2-The deep hydrogen treatment to
de-sulphurate from the feed of oil
gas which is produced from Ku-
waiti heavy oil in order to produce
diesel with ultra sulfur.
3- The influence of the type of
feed and ammonia on the perfor-
mance of catalysts used in the hy-
drogen shattering processes.
4- To use separate technologies to
improve the performance of the
reactor of the unit of replacing
catalysts to de-sulphurate the oil
residues affiliated to Mina Abd-
dullah Refinery.
5- To assess and control the growth
of microbes in KNPC oil depots –
the first phase: The quantitative
and qualitative assessment for mi-
crobes in oil depots.
It is mentioned that those projects
whose budget worth KD1 million
and half have been crystallized due
to the intensive efforts of Higher
Research and Development Com-
mittee which was formed in 2003
in participation of KNPC and
KISR. The results of these projects
are very essential for the industry
of oil refining field currently and
in the future to achieve an ample
economic benefit in this domain.
The signing ceremony was attend-
ed by several officials who repre-
sented KPC and KISR. The cor-
poration was represented by Mr.
Hashim El-Rifaai, Mr. Moham-
med Al-Ramadan, acting Deputy
Managing Director of Research
and Technology Department, Mr.
Fahd Nouri, Research and De-
velopment Department Manager,
Mr. Ahmad Al-Jemaz, DMD of
Al-Shuaiba Refinery, Mr. Nasser
Al-Shamma’, Technical Services
Department Manager at Mina Ab-
dullah Refinery, Mr. Khalid Al-
Mushaileh, Corporate Planning
Manager at KNPC and Dr. Soad
Al-Radwan, Research and Tech-
nology Activities Coordinator.
KISR was represented by Dr. Naji
Al-Mutairi and a number of senior
officials.
8
I n T h i s I s s u e
Waleed Al-Abduljilil: Keeping work in progress under the tragic incidents
of Japan reflected the deeply-rooted Kuwaiti-Japanese bilateral relations
Under the recent tragic incidents which
hit Japan and led to catastrophic results
influenced negatively its economy and
infrastructure, Kuwait Petroleum Corpo-
ration (KPC) represented by Tokyo Of-
fice took an appreciable humanitarian sit-
uation in this regard. Many international
companies working in Japan failed unfor-
tunately to adopt this stance which is rep-
resented in the insistence of the office’s
staff to resume their duties under these
tough circumstances which engulf their
safety there. This stance was evidence on
the employees’ devotion and capability to
undertake responsibility. Thus, they have
become a good example not only in nor-
mal situations but also in hard times.
About positions in Tokyo Office, KPC
Newsletter communicated with Mr.
Waleed Al-Abduljilil, Tokyo Office
Manager, who assured us about the of-
fice staff and its activities their; however,
he replied clearly to the following ques-
tions:
First of all, Could you assure us about
the office’s staff?
Earthquake hit Tokyo during working
hours, whereby the building rocked for a
long time. But thank God, there were no
casualties in the office, or any damage to
the building.
How could the office’s team manage
to adapt with the hard circumstances
that hit currently Japan?
In the beginning, there was disruption
to some train lines (the blood-line of
transportation in Japan), which resulted
in staff suffering from increased com-
muting time. Since there was a chain of
aftershocks, we sorted to alternative at-
tendance in order to reduce risks to em-
ployees. As for food and basic services,
no shortage was noticeable in Tokyo.
What is the role which the office per-
forms under the current crises which
hit Japan?
Our office communicated with custom-
ers’ requests in order to help them cope
with the situation. It is to be noted that
level of KPC’s flexibility exceeded ex-
pectations, especially for prompt requests.
Furthermore, we were commented by our
customers for not closing the office, as it
demonstrated our solidarity with Japan in
its dilemma.
Have the tragic catastrophe influenced
the Kuwaiti-Japanese commercial and
economic relations?
There is some decline in Japan’s exports,
as well as refining rates. But this is only
temporary, since industrial facilities are
expected to resume normal operating lev-
els before the end of the year.
9
Our commitment to meet
obligations on time took part
in pushing forward the wheels
of development in Japan
Under the Kuwaiti contributions to
Japan, how can perceive the future
bilateral relations between the two
countries?
Japan is one of the oldest and largest
strategic partners in the region. Bilat-
eral relations started commercially
before establishing diplomatic ties,
which gives it a unique status. Ku-
waiti aid for Japan further deepens
the relations between the two coun-
tries, which is a mere reciprocation to
Japan’s efforts and contributions for
the liberation of Kuwait.
Finally, we would like to express
sincerest gratitude for receiving over-
whelming supportive messages, es-
pecially the daily support from Mr.
Abdullatif Al-Houti and Mr. Fahad
Al-Nashmi since the beginning of the
crisis.
10
E v e n t s
Kuwait Petroleum Corporation ap-
proved a deal to bolster cooperation
with Indonesian Pertamina Co in in-
formation systems field.
This came in the frame of developing
the bilateral relations between KPC
represented by International Market-
ing sector and Indonesia represented
by Pertamina Co.
In this context, KPC hosted on Mon-
day May 2, 2011 a higher delega-
tion from Pertamina Co including 47
members from the various depart-
ments that are in charge of informa-
tion developing systems which are
applied in KPC and pursuant to the
international criteria approved in in-
ternational companies.
It is worth mentioning that Pertamina
selected KPC in general and Interna-
tional Marketing sector in particular
To avail of programs and systems approved in KPC and its subsidiaries
Int’l Marketing sector hosts delegation from Indonesian Pertamina Co
to avail of its experience thanks to the
highly qualified international systems
which the corporation applies. These
systems have made it an international
example in all fields.
Undoubtedly, Training and Career
Development sector has exerted tre-
mendous efforts to coordinate among
the corporation and its subsidiaries to
ease the task of the visiting delega-
tion in addition to gearing up a distin-
guished scientific program that can
enable the delegation to avail of pro-
grams and systems applied in KPC
and its subsidiaries. It is aimed also to
let the delegation avail of the illustri-
ous Kuwaiti experiences working in
Information Technology (IT) field.
International Marketing sector rep-
resented by Supply Operations De-
partment held a meeting on Thurs-
day April 14, 2011 at Al-Rawdhatain
Ballroom in the oil complex to cel-
ebrate its achievements fulfilled dur-
ing the financial year 2010/2011.
On her part, Mrs. Ghadeer Al-Qadfan,
Supply Operations Department Man-
ager, thanked in her keynote speech
the department’s employees for their
tremendous efforts exerted through-
out the year, hoping them to keep put-
ting forth efforts to achieve efficiently
the department’s goals of the coming
financial year. She announced also
activating the operational plan of the
new financial year which came to ef-
fect in February 2011, indicating the
plan is aimed to develop work in all
fields of the department to cope with
the sector’s strategic plan and the fu-
Supply Operations marks its annual achievements
ture ambitions.
The celebration included an elaborate
explanation about the new operation-
al plan, its work mechanism and the
tasks of each committee. It is worth
mentioning that the higher adminis-
tration of the department was keen
on enabling all its staff to take part in
carrying out the plan to apply it per-
fectly.
In the same context, Mr. Jamal Al-
Loughani, DMD of International
Marketing sector, honored the ideal
employees and thanked all personnel
for their efforts which participated in
fulfilling the achievements of the de-
partment and sector in particular and
the oil sector and KPC in general.
11
Pursuant to KPC environment strat-
egy which is aimed to control the
emissions of CO2, International
Relations Department held, in coop-
eration with Training and Career De-
velopment Department and Booz &
Company Management Consulting,
a training course dubbed “KPC pre-
pares for a future with less carbon”
for the members in charge of carry-
ing out the strategy on 10-14 April,
2011 at KPC Training Center.
The program included the contents
of the strategy and all related issues
such as the international negotiations
concerning climate change such as
Kyoto protocol; in addition to the
mechanism of commercial exchange
for the plates of reducing emissions
and investment opportunities avail-
able in the frame of Clean Develop-
ment Mechanism besides other mar-
keting mechanisms. There are also
other proposals and recommenda-
tions to control these emissions and
chances of preserving the consump-
Organized by Int’l Relations, Training sector
Training program held for the team of CO2 Emission Dept.
tion of energy and reinforce its ef-
ficiency as well as harnessing clean
technology in this domain.
Mr. Atef Al-Jameeli, International
Relations Consultant and Team
Leader, briefed about the main bases
of the course and the mechanism of
implementing it, pointing out that the
general frame of the program was al-
lotted by Mrs. Rasha Ma’rafi, Inter-
national Relations Team Leader and
Deputy Chairperson of the workshop
and Mr. Narwish Ecor from Booz.
Finally, Mr. Bader Suod Al-Sumait,
Deputy Managing Director of Priva-
tization, honored the team members
and foreign consultants. In addition,
appreciation certificates were distrib-
uted to them for their efforts through-
out the training course.
Among the series of introductory
lectures through which Kuwait Pe-
troleum Corporation (KPC) bolsters
its communication with the institu-
tions of the civil society, Mr. Mo-
hammed Khider Al-Shatti, Manager
of CEO office gave a lecture to the
students of Engineering and Petro-
leum Faculty, Kuwait University on
Wednesday April 28, 2011.
The lecture, which underscored the
corporation’s activities in oil and its
distillates as well as the geopoliti-
cal circumstances that influence oil
prices and ways of pricing the Ku-
waiti oil in various markets, came
in tune with an invitation from Dr.
Ali Akbar, Engineering Department
Head at Engineering and Petroleum
Faculty.
In this context, Al-Shatti gave an-
other lecture dubbed “Reflections
of the unrest in the Arab region on
oil prices” to the students of Social
Sciences Faculty. He highlighted the
new developments in oil prices in the
international markets, their connec-
tion to the political and economic in-
cidents and the expected scenarios of
oil prices within the coming phase.
It is mentioned that the lecture came
in respond to an invitation from Dr.
Obaid Al-Otaibi and Dr. Abdulreda
Aseeri.
Al-Shatti lecturing about KPC activities and oil prices in KU
12
T r a i n i n g & C a r e e r D e v e l o p m e n t
Sheikha Shatha Nasser Al-Sabah, Managing Di-
rector of Training and Development sector, signed
a cooperation protocol between Kuwait Petroleum
Corporation (KPC) and the Government Manpow-
er and Restructuring Program (GMRP) to train and
rehabilitate the Kuwaiti students.
This comes in tune with KPC keenness on adopt-
ing the youth and distinguished energies and in
tune with its social responsibility towards the in-
stitutions of the civil society.
On this occasion, Sheikha Shatha said, “KPC be-
lieves that oil is not its only resource since the real
resource is manpower that takes part in developing
the oil industry. Therefore, it has allotted a strate-
gy to train inclusively and rehabilitate the national
personnel as well as improving their efficiency.”
The ideology which Training and Development
sector espouses in the corporation is aimed to sus-
tain and develop the national personnel to meet the
requirements of labor market efficiently. It also
encourages the self-initiatives which are aimed to
perk up education and development in the oil sec-
tor and other various sectors in the country, added
she.
On his part, Mr. Abdullatif Al-Houti, Planning and
Career Development Department Manager, con-
firmed that signing this protocol is among the sec-
tor’s plan which is aimed to strengthen KPC’s status
in the field of serving the civil society. He clarified
that the sector has geared up a comprehensive plan
includes a training program for the students partic-
ipating in the corporation’s various departments.
Accordingly, the students have been instructed to
achieve daily activities and submit ideas and plans
aimed to improve work level through the principle
of teamwork’s spirit among trainees and depart-
ments in charge of training them.
He further indicated that KPC represented by
Training and Career Development sector spares no
effort devotedly to provide ample opportunities to
support all scientific and academic specifications
and authorities such as Kuwait University (KU),
Public Authority for Applied Education and Train-
ing (PAAET) anad Loyac program.
Cooperation protocol between KPC & GMRP inked
13
Training and Career Development
sector hosted on Tuesday May 10
at the Diwaniya of the oil complex
the Lebanese lawmaker Joseph
Maalouf.
Mr. Abdullatif Al-Houti, Training
and Career Development Depart-
ment Manager, welcomed warmly
Maalouf adding the sector is keen
on hosting occasionally interna-
tional lecturers to cope with the
latest development in the field of
career development. This tenden-
cy has been applauded by the per-
sonnel of KPC and its subsidiar-
ies, indicating the workshop sheds
lights on the following pivots:
1-Identifying the personal types
and how they influence the self-
image and relations.
2-Understanding the conflicts,
their reasons and reflections on
the organizational performance.
3-Developing communication be-
haviors to assure sympathy when
handling a conflict.
4-Getting the technology of ne-
gotiation to provide an equivalent
solution.
On his part, Maalouf initiated the
workshop with posing a number
of definitions for the term of con-
flict. He indicated that the conflict
in management field resulted from
the inability of the senior official to
communicate with his employees
and fail consequently to represent
them. “Definitely, conflicts are
not totally negative since there are
some directives encourage variety
Workshop on “Conflicts Management” held
Training sector hosts Lebanese MP Joseph Maalouf
in viewpoints harmoniously, calmly
and cooperatively for the good of
achieving the organization’s goals
and improving the employees’ col-
lective performance,” added he.
He stressed the importance of dia-
logue in the practical life and the
effective communication in solving
all crises.
It is mentioned that the workshop
underscored the experiences of
three of KPC senior officials; Mr.
Fahd Al-Nashmi, DMD of Crude
Oil Sales and Light Distillates, Mr.
Ali Murad, Public Relations Man-
ager, and Mr. Abdulaziz Sultan, In-
formation Technology (IT) Depart-
ment Manager.
14
O i l C u l t u r e
Natural gas is considered one of planktons specie
which is micro- organism such as fuci and primary
organisms which died and accumulated in the lay-
ers of oceans and the earth and then their remains
were compressed under alluvial layers. However,
through thousands of years, pressure and heat re-
sulted from the alluvial layers converted these or-
ganic substances into natural gas. This natural gas
does not differ much from the other kinds of fossil
fuel such as coal and oil.
Oil and natural gas are composed under the same
natural circumstances. These two hydrocarbon
compounds are usually located together under the
ground or the sea.
Anyhow, the organic alluvial layers which are bur-
ied at the depth of 1000-6000 meters at a tempera-
ture between 60-150 Celsius produce petroleum;
whereas the ones which are buried at deeper lo-
cations produce the natural gas. The deeper the
resource is, the drier it is; thus, the percentage of
condensates in gas reduces.
After the gradual form in the crust of the earth,
the natural gas and petroleum leak slowly to small
holes in the near porous rocks which work as de-
pots for crude oil. As rocks are usually filled with
water, petroleum and natural gas, which are lighter
than water and their density is lower than the sur-
rounding rocks’, they move upward through the
crust of the earth for long distances.
Finally, some hydrocarbon substances, which are
moving upward, are seized in a non-porous rocky
Natural gas is oil’s alternative
layer known as “Cap Rock”. Since the natural gas is lighter
than petroleum, it forms a layer above petroleum named
“Gas Cap”.
However, petroleum must be accompanied with “Associ-
ated Gas”. In addition, mines of coal contain quantities
of methane, which is the key component of the natural
gas. Methane disperses in the porous layers of coal often
through pores and fissures. However, it is called methane
of coal’s mines.
International reserves of natural gas
Pursuant to the definition of US Oil and Gas Journal, which
is specialized in this field, the affirmed reserve of natural gas
is defined as the quantities which are hauled out under what
is known currently as prices and technology. Meanwhile,
French Cedigas Authority defines it as the discovered quan-
tities which are possibly to produce under the widespread
economic and technical circumstances.
However, the first definition is considered more secretive
than the second one. Therefore, the international natural gas
reserves in the beginning of January 1999 were according to
Oil and Gas Journal’s assessment 7% lesser than Cedigas’s
assessments. Moreover, the reserves of natural gas in the
Middle East zone were 30% lesser than the assessments of
Cedigas Authority.
15
C o m p e n s a t i o n s W i n d o w
As we publish the last article of the
series of Compensations Depart-
ment, we have preferred to make a
panorama for the previous articles
to reinforce the importance of root-
ing the organizational culture among
employees.
The first article:
Introduction of Compensations
Department
We clarified that Compensations De-
partment is in charge of supervising
the implementation of procedures
concerning career affairs. These pro-
cedures include for example compen-
sations, merits of the service, social
security and the due monetary sums
of ending the service or completing
duty.
The second article:
“Thank You” card
This card is granted to the employee
as an appreciation for distinguished
or exceptional efforts or an achieve-
ment takes part in fulfilling work ob-
jectives.
The third article: Instant Award System
In this article we indicated that this
award is granted to the employee
who achieves any exceptional ac-
tivity aimed to protect lives, assets
or the employee who did any other
sublime service. It is considered a
complementary tool for incentive or-
ganization applied in KPC.
The fourth article:
Social Security System
We made clear that the system which
is currently applied in State of Ku-
wait includes all Kuwaiti employ-
ees whatever the activity they work
is. This system depends basically on
self-finance as subscriptions are the
key resource of financing it; in addi-
tion, the subscription is compulsory.
The fifth article:
System of honoring personnel in
duty
This system is one of the most signif-
icant and recent applications aimed
to improve the performance of per-
sonnel as KPC honors annually the
employees who have completed 10
years constantly in duty and upward
and they are still in service.
The sixth article:
Attendance and Dismissal System
It is aimed to control the attendance
and dismissal of employees besides
the hours and times of taking permis-
sions within a month. The system al-
lows the employee to be late maxi-
mum three hours per month after
getting the approval of the direct offi-
cial in charge. It allows the employee
also to take special permissions per
month.
The seventh article:
Leaves and their kinds
Leave is defined as the period in
which the employee is allowed to be
absent from work. There are differ-
ent kinds of leaves such as the annual
leave, the emergency leave and the
sick leave…etc. However, it is aimed
to confer the employee time to take
rest from hard work to refresh his en-
ergy.
The eighth article continues taking
about leaves:
We made clear in this article the con-
ditions and periods of other leaves
which are allotted by the bye-law such
as death leave, the leave of accompa-
nying a patient, marriage leave, Hajj
leave, special leave, special leave for
the disabled employee and maternity
By Ibrahim Awadh, Compensations Department Manager
(12) Panorama of Compensations dept.
leave.
The ninth article: Penalties and
their rules
We defined in this article the violation
whose committer must receive a pen-
alty. Imposing the penalty depends
upon the violation and its impact.
The tenth article:
Employees’ Efficiency Assessment
System
The employee’s efficiency is assessed
every financial year– starts from April
and ends at the end of March– in
which the employees performed and
finalized their duties. The assessment
process starts with assessing the em-
ployees’ performance by their direct
concerned official and after that the
latter is to meet with his employees
to inform them verbally of the assess-
ment and discuss also with them the
points of weakness and strength in
their performance.
The eleventh article:
The rights of disabled employees
This article underlined the merits
which are guaranteed by law no.
8/2010 which protects the rights of
this group in terms of their nomina-
tion, work environment and career
privileges.
16
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