SEK Update to Achieve 1% Gas Flaring Target

AL ADWANI ********

Booster Station Gathering Centre LPG/Refinery

Contents

• Introduction • Present Gas Flaring • Constraints to reach:

– 5.2 % in 2006/2007 – 1.0 % in 2010/2011

• Projects and Initiatives • Recommendations

Introduction

• KOC Gas Flaring Target:

– 5.2% in 2006/2007 – 1.0% in 2010/2011

• Actual to Date Gas Flaring for 2006/2007

– 11.3%

KOC Gas Flaring 2006/2007 Month April May June July August September October Average (7 months) West Kuwait 24.73

35.10

31.37

86.96

94.09

69.05

41.34

54.22

North Kuwait 7.80

7.31

11.10

12.52

6.88

13.22

5.63

9.07

SEK 0.39

1.13

1.32

0.73

0.95

0.52

0.44

0.79

Total KOC 6.60

8.54

8.73

16.00

15.89

14.48

8.36

11.33

KOC Gas Flaring 2006/2007 2 0 8 6 4 18 16 14 12 10 Apr May Jun July Aug Sept Oct Nov Dec Jan

KOC Gas Flaring 2006/2007 For October 2006 45 40 35 30 25 20 15 10 5 0 41.3

WK NK 0.44

SEK KOC

Constraints to reach 5.2% target

• SEK

– Projects Implementation – GC Upsets (CRU, Plant & Instrumentation) – BS’s Upsets

• WK

– MAA AGRP Down 9 Weeks for Repairs – GC Upsets (Compressors & Plant)

• NK

– CRU Upsets – BS 131 Upsets

Risks to reach 1.0% target

• SEK

– New BS-160 – Upgrading LP gas network – BS’s MOV’s replacement – Modernization projects – Telemetry Project

Risks to reach 1.0% target

• NK

– New BS-132 – New 40” pipeline to LPG – Insurance spares for compressors

• WK

– New GC 16 – GC 28 expansion – GC 17 solar replacement – New centralized Booster Station – Additional AGRP in MAA

Gas Flare Forecast 2006-2011 5 4 3 2 1 0

Gas Flare % GC-28 Comp. Exp Project GC-16 Additional LP Comp New BS-160

1 % target at 2010/2011

GC-17 Solar Replacement EF/1500 GC’s Modernization New AGRP New GC-16

06/07 07/08 08/09 09/10 10/11

Ongoing Major S&EK Projects

• Telemetry for Gas and Condensate Networks • (EF/1340) • Facility upgrade and relocation of U/G process piping GC-3,4,6,7,8,21,and 23; and BS-140 and BS-150 • (EF/1500) • Facility upgrade and relocation of U/G process piping GC 1,2,9,10,11,16,17,19,20 and 22; and BS-170 • (EF/1501) • Upgrading of LP Gas Network in SEK • (EF/1455) • New BS-160 (CPP, FEED) • (EF/1655)

PERIOD 06 - 07 07 - 08 08 - 09 09 - 10 10 - 11

Other S&EK Projects (Providing reliability)

• Replacement of 40” Pipeline from GCMB to the LPG Plant • Installation of new 12” HP pipeline from Manifold “O” to “Q”.

• Installation of new 12” HP pipeline from Manifold “A” to “F”.

• Replacement of valves in the Gas and Condensate Networks.

• Repair and installation of new coating on 32” HP pipeline from BS-150 to the GCMB manifold.

Other S&EK Projects (Providing reliability)

• Booster Station LP Compressor Dry Seals (HP dry seals replacement ongoing) • 16” HP Gas pipeline between manifold “O” and “Q” • 36” BS-150 export pipeline to CGMB • Corrosion Inhibitor Injection Facility at BS-140 and BS-150

Other S&EK Projects (Providing reliability)

• Gas Engine Management/Compressor Control Systems Replaced electro-mechanical controllers with high reliability PLC based controllers.

• Data Manager- Install remote monitoring capabilities and decision making software to increase availability.

• Flexible Membrane Load Coupling- Replaced gear type load couplings with membrane type which tolerate greater misalignment resulting in less downtime during high summer temperatures

Actions undertaken to mitigate risks

• Flaring awareness issues delivered to all KOC personnel through Postmaster.

• Gas Flaring Awareness Program was presented to personnel in WK, NK and SEK assets.

• Gas activities are coordinated with K-Companies through the Gas Supply Team • New Gas Services Team in the GMG

Actions undertaken to mitigate risks

• Improve project cycle time • Ensure preventive maintenance is timely • Enhance work skills and workforce • Complete installation of smokeless flares • Upgrade gas and condensate networks • Install required compressors

KOC/KNPC GAS BUSINESS STRATEGY 2006-2012 KNPC & KOC PM Gas Business

06/07

Facilities LPG TRAIN #1 LPG TRAIN #2 LPG TRAIN #3 LPG TRAIN #4 (NEW) AGRP Second AGRP (NEW) Ethane Recovery (NEW) BS-131 9-12 to 26-1 6-1 to 16-02 BS-140 BS-150 TR-III 5-11 to 30-12 BS-160 (NEW) BS-170 TR-II (9.4 to 6.5) GC-27 GC-28 KOC Flaring % KOC Gas/Cond Feed to MAA (MSCFD) KNPC Capacity (MSCFD) 5.2

1099 1120 10-2 to 11-3 6-1 to 2.2

TR-II (7.7 to 3.9)

07/08

4.7

1200 TR-I (12.12 to 8.1)

COMMISSIONING

TR-I (12.12 TR-II (11.6 to 8.1) to 8.7) TR-I (27-3 to 23 4) 1680

08/09

TR C (24.8 to 20.9) TR B (2.6 to 15.6) TR-A (11.10 to 16.10) 2.7

1562 TR-III (7.10 to 3.11) 8-11 to 26

-

12 1120 1680 Commissioning 24-5 to 4-7 TR-II (29.5 to 25.6)

09/10

2.3

1700

2780

(21.9 to 13.12) 1-2 to 7-4 TR-I (8.2 to 7.3) TR-II (15.3 to 11.4) TR-II (7.6 to 4.7) TR-II (12.7 to 8.8) 2170 (24.4 to 24.7)

10/11

Commission 1 2005 2780 TR-I (25.11 to 26.12) TR A (3.1 to 30.1) TR B (7.2 to 6.3) 21-5 to 5-8

11/12 COMMISSIONING

2170 1 2289 2780

Thank you !

Any questions?