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w w w . k n p c . c o m 1 2 Evolution Of KNPC Introduction: Kuwait National Petroleum Company Facts, Figures & History Kuwait National Petroleum Company KNPC was established in October 1960 as s joint venture between the government and the private sector. Since its incorporation, the company engaged in different activities of the oil industry. When it was established in 1960 KNPC was the only and first national company in a region where hydrocarbon resources were managed and exploited by foreign companies. The owners vision was a stimulating development and provided an exemplary experience in handling national resources. In its perspective KNPC came as a model for the indigenous potentials, to undertake management and exploitation of the oil resources which started to develop into a colossal source of income capable of sustaining the society welfare and financing its over all development. In 1975 the State acquired full ownership of KNPC and compensated the private shareholders for their stocks. KNPC’s operations were highly integrated mainly relying upon its oil refinery in Shuaiba and the marketing of petroleum products from Al-Ahmadi Refinery, run at the time by Kuwait Oil Company KOC- in both Local and international markets. As a matter of fact KNPC at that time was maintaining an efficient presence in Europe, the Far East and United States of America to handle the marketing of petroleum products from the Kuwait refineries. It even owned and operated a number of oil tankers to deliver petroleum products to customers all across the world. In 1980 Kuwait Petroleum Corporation (KPC) was established as the state owned asset and all other oil companies in Kuwait, including KNPC, became KPC subsidiaries. One year later after the establishment of KPC, the oil sector in Kuwait was restructured on sectorial basis. KNPC became responsible for the oil refining and gas liquefaction industry in addition to the marketing of petroleum products in Kuwait through a chain of filling stations, which reached its peak between 2005/2007 with 119 operating filling stations. In collaboration with KPC the company embarked on 3 studies and plans to modernize refining industry in Kuwait with a multi billion dollar projects to revamp Mina Al-Ahmadi and Mina Abdullah Refineries. By the year 1984 Mina Al-Ahmadi Refinery Modernization Project (RMP) was completed. It was then supplemented by the Further Upgrading Project (FUP) in 1986. The Two projects practically created a modern new refinery with optimal configuration and advanced technology, and significantly increased the overall capacity of the plant. Two years later Mina Abdullah Refinery modernization project (MAB) was completed turning the old refinery into a state of the art plant with a sizable capacity increase. MAA-RMP and MAB-RMP led not only to capacity increase but also to products quality improvement. On the domestic scene KNPC continued to build new filling stations in order to add more outlets for products marketing and to respond to the growing demand for gasoline and other fuels. However, KPC and KNPC put into effect the trend towards privatization and started in 2004 to transfer its Local Marketing assets, such as the lube oil plant and the petrol stations, to private companies. In 2004 the Lube Oil Blending Plant in Shuaiba was sold to a private firm and in early 2005 the privatization process of 119 filling stations commenced with transferring the ownership of 40 filling stations to a shareholding private company. In early 2006 another batch of 40 filling stations was turned over to another shareholding company. The privatization wheel is still rolling on until the last filling station owned by KNPC, is passed to the private sector. In the meantime the company gave special attention to its human resource by implementing a policy of steady growth of the national manpower and providing the company sites with highly qualified humanresources. By the year 2009 the percentage of Kuwaitis in the total manpower was around 79.5% from the company labour force which totaled 5235 employees. 4 5 6 Local Marketing In June 1961 petroleum products distribution outlets in the local market were passed to KNPC, from Kuwait Oil Company Ltd. Since then, KNPC embarked on increasing its distribution facilities in order to meet growing local demand for fuel in light of continuous urban expansion and the rising standard of living in the country which is accompanied by steady increase of vehicles population. Through its local marketing arm, KNPC in steady growth built new filling stations, supported by two main depots for the storage of various petroleum products needed to meet the local market requirements. One main fuel depot was built at Sabhan and is being supplied with petroleum products from the company’s refineries by means of pipelines. A second petroleum product depot was built in early 2000 at Ahmadi township. The number of filling stations through Kuwait increased and reached 119 stations by 2007. Naturally, the main products KNPC provided to the local market are unleaded Super Premium gasoline and Premium gasoline, gas oil, and kerosene. In addition to fuel supplies, most stations provide other services such as oil changing, and distilled water for car batteries. When KNPC took over the management of the fuel stations in 1961, there were only a dozen of petrol stations, most of which were small and consisted of one or two islands. Today there are 119 stations spread out in all parts of Kuwait, including the highways leading to the country’s Northern and Southern borders. In the mid-1980’s KNPC introduced the self-services system at the filling stations. Two thirds of the company filling stations were self-service operated. To cope with increased demand, these stations were equipped with quick, responding and easily operated pumps. However after the privatization of 80 filling stations ,this self service system was discontinued and replaced by full service system in all KNPC manned petrol stations. 7 Automatic Car Wash Stations KNPC introduced this services in its Local Marketing facilities in the late 1970’s, and now operates 4 automatic car wash stations at Mansouria, Qurtuba, Bayan and Abu-Hlaifa. Two of them had been turned on to the private sector. These facilities provide full cleaning services, from engine oil change to steam-washing of the car engines and a multistage cleaning process that uses modern technology. Indeed, the services provided at these stations are at the same level in similar facilities in Europe and the USA. Kuwait Oil KNPC started marketing lube oils as early as February 1961 under the brand name of Kuwait Oil. In 1978 KNPC inaugurated its own lube oil blending plant in Shuaiba. In the early stages, the plant produced car and heavy equipment engine oil, A separate turbine oil production unit was then added in 1983 with an annual capacity of 5,000 metric tons. The design capacity of the plant is 28,000 tons per year. The plant’s oil products continued to be marketed locally under the brand name “Kuwait Oil” through the KNPC filling stations. In November 2004 KNPC launched a privatization program of Local Marketing facilities. The property of the lube oil blending plant was completely transferred to a local private company. Thus the privatization of lube oil business in the company has been completed. This business which the company started 48 years ago came to a total end as the company walked out of it. Products Depots The Local Marketing Department, is running two depots to supply fuel to the distribution network. The first one is in Sabhan. It is supplied with petroleum products ie, gasolines (different grades), kerosene and diesel form Mina Al-Ahmadi and Shuaiba refineries by pipeline. The other depot is in Al-Ahmadi, was commissioned in 2000. Privatization of Local Marketing facilities: KNPC set up a special team to fulfill plans and draft procedures for the privatization process endorsed by KPC and KNPC. The process began with Local Marketing facilitates. Efforts focused on privatization of the lube oil business and the petrol stations. In November 2004 the contract for the sale of the company Lube Oil Blending Plant in Shuaiba was signed with the winners of a public bid. This first step of privatization was soon followed by the next measure, namely turning the ownership of the company filling stations to the private sector. In May 2005 the first batch of filling stations was turned on to the “Oula” Company, a private shareholding 8 company included 40 filling stations. Plans had also gotten underway to transfer two other groups, each consists of 40 stations to two newly established private companies before the end of the year 2006. The first batch of 40 filling stations was acquired by “Al-Sour” company in early 2006. In this sense KNPC still owns 39 filling stations only. 9 10 Oil Refining Oil Refining and Gas Liquefaction: KNPC Core Business Kuwait has 3 operating refineries since long : Date of Current Major Capacity Expansion ‘000 Bbls/Day Refinery Date of Establishment Mina Al-Ahmadi Refinery 1949 1984 – 1986 466 Mina Abdulla Refinery 1958 1988 270 Shuaiba Refinery 1968 1975 200 • After nationalization of the Oil Sector, initially these 3 refineries operated as separate entities, until the re-organization of the Oil Sector in 1980 with the creation of Kuwait Petroleum Corporation (KPC), a state-owned entity responsible for Kuwait’s hydrocarbon interests throughout the world. KPC operated through a series of specialized subsidiaries in Kuwait and across the world. Kuwait National Petroleum Company (KNPC) is the subsidiary responsible for the entire domestic Crude Oil Refining and Gas Processing activities along with fuels retailing for the local market in Kuwait. The Gas Plant has a total capacity of 1680 MMSCF per Day (560 x 3 Trains) to process sweet associated gas & condensate from the crude production. In addition, KNPC also owns and operates Acid Gas Processing Plants to sweeten the sour associated gas prior to its feeding the Gas Plant. • All 3 refineries underwent major modernization and expansion as summarized later on and has now a total capacity of around 936,000 barrels/ day. Having been located close to each other, the modernization also addressed the operation of these refineries as one integrated complex with extensive 11 inter transfer facilities for feed and product streams movements for optimization. The refining complex in Kuwait is the most advanced one in the Middle East with the state of the art processes and facilities. Shuaiba Refinery after its modernization in mid 70s, was the first all hydrogen refinery in the world. While Mina Al-Ahmadi Refinery is one of the largest capacity single refinery in the world, Mina Abdulla Refinery was modernized to achieve deep conversion with zero percent fuel oil yield. • KNPC Refining complex includes a total of 4 Hydrocrackers (for Vacuum Gas Oil feed as well as for Vacuum Residue), Delayed Cokers (the only Cokers in the entire GCC), Fluid Catalytic Cracker and an array of Hydro Desulfurization units for the distillates and residues. • During the Iraqi invasion of Kuwait and subsequent liberation war, severe damage to refinery facilities were caused, this was at a time the modernization of the entire complex was just stabilized. From 1991 till mid 90s the activities involved the restoration of the damage which was successfully accomplished. • Subsequently, a major effort for augmenting Gasoline production facilities, involving expansion of FCCU capacity, building new Alkylation, Acid Re-generation and MTBE units as well as a superfractionator for Propylene/Propane separation was undertaken and completed. • The refining complex essentially is an export oriented one, with about 80% of the products sold to international markets. The product exports are handled by another subsidiary, KPC-International Marketing. For product exports, KNPC have elaborate marine facilities (4 Oil Piers and a Sea Island) for the product export as well as dry cargo berths for Coke and Sulfur exports. KPC’s Long Term Strategic Plan for the Oil Sector : • KPC had put in place in 2001, a long term Strategic Plan 2020 for the Oil industry and the industry development plans are focused on achieving the strategic directions set in this Strategic Plan. • Expansion and business growth of downstream domestic refining (KNPC activities) are being carried out fully aligned to these strategic directions. • There is also an elaborate Balanced Scorecard based Performance Management system across KPC and its subsidiaries to monitor strategic progress and also to form the basis for providing objective incentives to the employees. Major collaborations with partners or joint ventures KNPC is a National Company and as a subsidiary of KPC which is 100% owned by the Government of Kuwait. Our collaboration includes building facilities to supply Ethane feedstock to Olefin Project (Equate-1, a joint company 12 between PIC ( Petrochemical Industries Co), a subsidiary of KPC and Dow Chemicals. KNPC is a joint venture partner (40%) with PIC in the Kuwait Aromatics Project (KARO) through which two onpurpose subsidiaries KPPC and TKSC for the production of PX &BZ and Styrene Monomer. Overview of the range of products and services of the Company KNPC refining complex produces products to meet the international market specifications. The range of products include all traditional fuels : Fuel Gas for local Ministry of Electricity &Water )(MEW) for power generation Ethane as feed stock to Olefin Plants (Equate-1 and Equate-2), a JV Projects by KPC Subsidiary, PIC (Petrochemical Industries Co.) and DOW Chemicals. LPG – Local market and exports Petrochemical Naphtha for export Gasolines – mainly for the domestic market Kero / Jet-A 1 for export and domestic market Diesels – various grades for export markets and local market requirements Fuel Oils – Local requirements for MEW, bunker needs and exports Specialty Products : Sulfur, Petroleum Coke, and Bitumen (mainly for local demands) 13 Growth of Oil Refining Throughput in the Three Refineries and Fuel Oil Percentage (000 P/D) SHU MAB MAA Fuel Oil % Products Percentage in the Total Throughput (example of 2008/2009) 7.0٪ 2.5٪ 19.9٪ 24.9٪ 17.1٪ 28.6٪ Naphtha/ Mogas/ Reformate 14 Kerosene/ ATK Gas oil / Diesel Fuel oil /Residue Other Products Consumption / Loss 15 16 Shuaiba Refinery Shuaiba Refinery is located within the Shuaiba Industrial Area boundaries some 50 km south of Kuwait City. The refinery installations occupy an area of 1,332,000 square meters. It is not directly connected with the sea coastline. Construction of the refinery started in 1966. It was the first refinery built by a national company in the region. In April 1968, the refinery was officially commissioned and the first shipment was exported to Japan a month later. Its initial refining capacity was 95,000 barrels per day, and in 1975 an expansion project was implemented and its refining capacity rose to 200,000 bp/d. Shuaiba Refinery process units were designed according to the most advanced technology and techniques available at that time. The refinery was capable of handling relatively high sulfur heavy crude oils which necessitate special processing technology. Shuaiba Refinery is considered the world’s first all-Hydrogen refinery at that time with full usage of Hydrogen gas manufactured from natural gas in Process Units. The hydrogen gas plays a significant role in removing/reducing sulfur and nitrogen impurities from products as well as upgrading products quality to meet the required international product specifications. Shuaiba Refinery processes a wide range of products, i.e. Naphtha as raw material for petrochemical industries, high octane Gasoline for internal Combustion Engines, Aviation Turbine Kerosene for airplanes, Diesel fuels and Fuel oil for engines and furnaces. Shuaiba refinery utilizes Hydro-cracking technology to produce high quality light products converted from heavy oils. When it was established in 1975 Shuaiba Refinery was utilizing the most updated process technology in order to meet the needs of product quality and maximize refinery profitability. Presently Shuaiba Refinery is operating at 200,000 BBLS/D Crue oil processing on sustained basis. 17 New plant facilities are being added to improve performance and comply with environmental requirements introduced at various stages. Shuaiba Refinery owes its manufacturing importance to the advanced technological design of its process units at the time of construction. At that time, the refining of relatively heavy crude’s, particularly those that had a high sulphur content, required complicated and sophisticated technologies. In addition to that advanced technology, Shuaiba Refinery as an all-Hydrogen refinery was capable of removing sulphur and pollutants from petroleum products, thus raising the specifications of those products to the world’s highest quality level. Along with Mina Al-Ahmadi refinery, Shuaiba Refinery provides the local market with its needs of petroleum products. However, the majority of the refinery products are tailored for export to the world market. Shuaiba Refinery is equipped with a large number of storage tanks for crude oil and refined products. In all, it has 72 tanks of various storage capacities. 1. Shuaiba Refinery: (Summary of the Main Features) Established in 1968 Located in Shuaiba Industrial Area ≈ 50 KM from Kuwait City Occupies an Area of 1.233 sq. KM Besides the Crude processing capacity of 200 MBPD, has the following process units : Isocracker / Isomax Unit (Vac. Gas Oil Hydrocracker) Reformer (for Gasoline production) Distillate Hydrotreaters (for Naphtha, Kerosene & Gas Oil) (Along with a host of supporting units (Hydrogen Production, Sulfur Recovery, Utilities, etc) Major Units at Shuaiba Refinery Crude & Vacuum Unit (Unit 6) Objective : Crude and Vacuum Unit is the primary Crude Fractionation Unit which processes Kuwait Export Crude and produces distillates such as unsterilized Naphtha, kerosene, light & heavy Diesel. Vacuum Gas Oil, Residue for further processing in downstream Processing Units. The Unit also includes a Foul Water Treating System for aall the Refinery foul water streams. 18 Capacity: The unit is designed to process 180000 BPSD of Kuwait Export Crude Oil. It, however, normally operates at 200000 BPD. Preheat Train & Preflash Section: the Crude Oil received from TK-402 through booster is pumped by charge pumps and preheated in parallel trains of preheat Exchanger with hot intermediated stream and products. A small quantity of water and demulsifier chemical are added before preheating. The hot crude is mixed with wash water and fed to the Desalters to reduce its salt content by electric desalting process. A water phase containing most of the salts is separated out. The desalted crude is dosed with NaOH solution fix chlorides content, pumped and further heated through two parallel trains of Heat Exchangers and fed to Preflash Tower, V-06-17. The preflash Tower Overhead vapor are cooled by exchanging heat with Crude Oil, condensed in Fin FAN Coolers and routed to Overheads Drum, V-06-18. Part of liquid Naphtha from Overhead Drum is used as reflux. The Naphtha vapors and liquid from Accumulator are sent to Naphtha fractionation Unit. The crude from the bottom of Preflash Tower is pumped through heat Exchangers receiving heat from Vacuum Tower bottom product and subsequently to Atmospheric Heaters, H-06-01/03 operating in parallel. 19 H-Oil Unit Unit 07 Objective: the purpose of the units is to upgrade the Crude residual stocks (bottoms of Crude Unit Vacuum Distillation section by catalytic hydrocarking process in the presence of hydrogen and obtain more desirable middle distillate products. These middle distillate products are separated as side streams from the common Fractionation Tower Naphtha, Kerosene and light Diesel. The Heavy products from Reaction Section and Fractionators Tower are further separated in a ……..distillation tower and withdrawn as Heavy Diesel, LVGO,HVGO, and vacuum Bot…… (Fuel Oil). Capacity: The H-Oil Unit was originally designed to Process 28800 BPDS fresh feed of 9.3 Deg. API Vacuum Bottom Feed Stock (14400 BBLS/D to each train). Since commissioning, the Unit operating mode has been extensively modified to suit the prevailing refinery operating mode has been extensively modified to suit the prevailing refinery operating pattern. The H-Oil reaction takes place in an ebullated bed of catalyst (NiMo Type). Pump P-07-02 maintains circulation to keep the catalyst particles in continues ebullition. The catalyst level is monitored by a radioactive source (Ohmart Detectors). Catalyst consumption is about 90 Tons/Month for both Trains A/B. The Rector effluent flows as a vapor-liquid mixture into a Separator , V-07-02. The vapors a Hydrogen rich stream containing lighter hydrocarbon reaction products. The liquid is composed essentially of heavier hydrocarbon products, unconverted charge oil and appreciable amount of dissolved Hydrogen and light ends. 20 Shuaiba Refinery Units Process Units No. Of Units Design Capacity - Crude Distillation Unit 1 180.000 bpd - Hydrogen Manufacturing Units 3 222 MMSCF/D - Catalytic Reforming Unit 1 15800 BP/D - ISO Cracker Unit 1 44000 BP/D - ISO Max Unit 1 23000 BP/D - H- Oil Unit 1 50000 BP/D - Naphtha Fractionation Unit 1 65000 BP/D - Naphtha Unifining Unit 1 26000 BP/D - Kerosene Unifining Unit 1 34200 BP/D - Light Diesel Unifining Unit 1 12600 BP/D - Heavy Diesel Unifining Unit 1 9320 BP/D - Kerosene Merox Unit 1 15000 BP/D - Sulphur Recovery Plant 2 38.4 MMSCF/D - Acid Gas Removal Plant 1 48.5 MMSCF/O - Ammonical Water Treating 2 140 & 340 GPM - Flare Gas Recovery Unit 1 18.76 million SCF/D - ISO Cracker Unit 1 44000 BP/D - ISO Max Unit 1 23000 BP/D - H-Oil Unit (Heavy Oil Recovery) 1 50 000 BP/D - H-Oil Vacuum Distillation Unit 1 42700 BP/D - Burgan Gas Treating Unit 48.7 MMSCF/D - Amin Treating Unit 147.7 MMSCF/D - Acid Gas Removal Plant 1 72.2 MMSCF/D - Catalytic Reformer 1 15800 BP/D - Hydrogen Production & Compressor Units 3 222 MMSCF/D - Water Dematerializer Units 1 1450 US gp/m of treated water - Boilers 4 300,000 ibs/hr - Ammonical Water Stripping Units 1 140 GPM - Ammonical Water concentrating Units 1 340 GPM - Flare Gas Recovery Unit 1 18.5 MMSCF/D Utilities 21 22 Manpower structure at Shuaiba Refinery Total manpower at Shuaiba Refinery is around 860 employees of whom there are 652 Kuwaitis at the rate of 75.9%. The structural configuration of the refinery depends on three main departments each is headed by a corporate manager and as follows: Operations Department: which groups all staff involved in operation activities, such as Refinery operators, shift leaders and members, Central Control Rooms Staff etc. Engineering and Maintenance Department: the main areas in which this department staff function is Maintenance both overall Maintenance (GRTA) daily maintenance of units and equipment, including advanced workshops and maintenance area. Technical Service Department: the department activities, generally concentrates on quality and quantity control of the plant. That is why utilities such as the labs and the computer application services are parts of this department. However, among Technical Services Department main activities is the engineering and operations planning in the refinery. In addition to the three departments the refinery also comprises the Inspection and Corrosion Division, the Team Leader of which directly reports to the Refinery DMD. Other departments such as the Safety, Health & Environment the General Services, Human Resources and Corporate Communication have either divisions with extended comprehensive responsibilities or only representation or liaison offices. This structural organization is a typical standard in the company three refineries. 23 24 Mina Abdullah Refinery Mina Abdullah Refinery (MAB) is located approximately 60 km to the South of Kuwait City, directly on the Arabian Gulf. The total area covered by its installations is 7,935,000 m2. The refinery was first built in 1958 during the rule of the late Sheik Abdullah Al-Salem Al-Sabah, by the American Independent Oil Company “AMINOIL”. It was at that time a simple refinery that contained one crude oil distillation unit with a capacity of approximately 30,000 bpd. Following several expansion projects between 1962-1967 its refining capacity rose to approximately 145,000 bpd. Mina Abdullah Refinery became a State property, following a transition period during which the refinery was managed by a national company under the name of “Wafra Oil Company” ownership of the refinery was transferred to KNPC in 1978. - Mina Abdulla Refinery : (Summary Of main Features) Established in 1958 and Expanded in 1988 Located in southern Kuwait about ≈ 60 KM from Kuwait City Occupies an Area of 7.9 sq. KM Besides the Crude processing capacity of 270 MBPD, has the following process units : Atmospheric Residue Desulfurization units Delayed Coking Units to upgrade vacuum residue Hydrocracker unit to upgrade Vac. Gas oil Distillate Hydrotreaters (for Naphtha, Kerosene & Gas Oil) (Along with a host of supporting units (Hydrogen Production, Sulfur Recovery, Utilities, etc) 25 Mina Abdullah Refinery Modernization Project: (MAB-RMP) In line with the strategy adopted in the early 1980’s to modernize Mina Al- Ahmedi and Mina Abdullah refineries, the Refinery Modernization Project, (MAB-RMP) was launched in mid 1980s. The plan to revamp Mina Abdullah Refinery and before it, Mina Al-Ahmadi Refinery was part of a strategy to upgrade the oil refining industry in the country. A study prepared by a specialized committee from KNPC and KPC, found that Kuwait will need liquid fuel to feed its power generation plants and other installations, cater for the country’s demand for petroleum products and create stable foreign markets for Kuwait exports of high grade petroleum products. To provide such liquid fuel, Mina Al-Ahmadi and Mina Abdullah refineries would have to be expanded. Furthermore, the need to provide the local market with petroleum products with low pollutants that conform with the strict antipollution requirements of many countries with regard to imported petroleum products, necessitated introducing, new technologies to enhance the ability of the Kuwaiti petroleum products to compete on the world market and to meet stringent international environmental regulations. To this end, the Ministry of Oil commissioned KNPC in early 1980 to undertake conducting a comprehensive study to modernize these two refineries and to select the optimum system for achieving such modernization. When the study was completed in 1981 work began for the two refineries Modernization Project. Mina Abdullah Refinery Modernization Project consisted of three parts. The first was to revamp the existing units and utilities at the Refinery and increase their efficiency and capacity. The second was to construct new units and support facilities that use modern technology in order to produce high quality petroleum products and minimize volume of fuel oil in the ultimate yield. The third was to develop export facilities including the construction of a man-made island (the Sea Island , MAB) to be used as an exporting point for the refinery products and to increase the efficiency of the North and South piers at Mina Al-Ahmadi Refinery. Mina Abdullah Refinery Modernization Project was completed in late 1988 and officially inaugurated in February 1989. When it was completed, the refining capacity had been increased to more than 230,000 bpd. Besides the crude throughput capacity augmentation, RMP-MAB also envisaged new dedicated product dispatch facilities and took into account integration with the then existing MAB refinery and also with MAA and SHU refineries. After Kuwait liberation, the product shipping and transfer facilities, damaged during the Iraqi Invasion, were rebuilt Furthermore, the refinery has approved a revamp project to remove the bottle-necks in the refinery utility system. This effort led to achieving significant increase of the plant refining capacity which is currently running at around 270,000. Main Units 1- Crude Oil Distillation Unit (U-11) The new crude distillation unit at the refinery has a design capacity of 190.000 bpd. With the existing other (CDU) unit of a total capacity of 80,000 bpd, the refinery now has two crude distillation units with a total capacity of 270,000 bpd. Like all other crude distillation units at the refineries, crude from the Kuwaiti oil fields is distilled 26 in a distillation tower under atmospheric conditions in order to obtain preliminary petroleum products such as petroleum gases, naphtha, kerosene and diesel, while the preliminary column bottom residues are sent to other units for further treatment under different temperature and pressure. Process Description These production units upgrade the specifications of the primary petroleum products from the distillation column in order to conform with international specifications. The old crude distillation unit has been upgraded to a production capacity of 80,000 bpd, following certain important improvements to its performance in order to bring it more in line with the specifications of the new distillation unit. 2- The Delayed Coker Units: The Delayed Coker in Mina Abdullah Refinery is the unique process unit of the RMP project since it is the first such unit to be constructed in the Gulf area. 27 There are two identical trains with a total capacity of 76,000 BPSD. (38,000 BPD each) The design of the unit is based on the full thermal cracking of the residum from the vacum rerun unit, to produce more profitable product like Naphtha, Kerosene, Diesel and Gas Oil with a final residue of green coke. The coke product forms porous solid after cooling in special drums, which is then removed by using a cutting tool equipped with high velocity water jets. The objective of the unit is to convert the bottom of the barrel residue to higher value products: as well as processing the entire refinery slop oil. Delayed coking is a thermal cracking process which upgrades the heavy residues into valuable distillate products. Cracking in the process heaters and sending the residue to coke drums where the cracking process is completed by providing adequate residence time. The vapors from the coke drums are sent to the fractionators to be fractionated into gas and liquid product streams, while coke product is removed from the coke drum after predetermined changeovers and sent to coke handling facilities. Products from the unit are. - Light Naphtha - Heavy Coker Naphtha - Kerosene - Diesel - Gas Oil - Green Coke 3- ARDs (Atmospheric Residue Desulphurization Units) The unit is designed to process 65,900 BPSD of high sulfur at bottoms (HSFO) in tow trains with one common fractionators. One train can be operated while the other is down for catalyst replacement the removal of Nitrogen and metal compounds, the primary object unit is to reduce the sulfur content of atmospheric residue to 0.5% done in the presence of hydrogen over a fixed catalyst bed reactor. A project has been implemented to revamp the two Atmospheric Residue Desulphurization units at Mina Abdullah refinery by using On Stream Catalyst Replacement (OCR) technology to increase the capacity of each train from 33,000 BPD to 42,000 BPD. This will result into a higher cycle length for the fixed bed reactor to 15 months instead of 11 months. Light distillates yield will also be improved by 5%. Profit increase generated from the project is estimated at KD 15.8 million per year. 28 4- Sulfur Recovery Unit (U-23) The main objective of the sulfur block is to achieve sustained compliance with environmental guidelines. The Sulfur Recovery Unit is designed to recover elemental sulfur to an overall efficiency of 99.9% from the amine regenerator acid gas, sour water stripper overhead gas and the recycle gas from the new Tail Gas Treating Unit (TGTU). The recovered molten sulfur is degassed and sent to flaking facilities located in MAA, while the tail gas will be sent to the TGTU for further processing. The unit consists of three identical trains, each with a design sulfur intake of about 270 MT/SD. Product sulfur is 99.5wt% purity. A project was commissioned 2004 to revamp the unit capacity from 270 MT/SD to 400 MT/SD utilizing the Oxygen Enrichment Technology. 5- Central Control System The Central Control Room (CCR) is a prime example of the modern technology applied in the Mina Abdullah Refinery Modernization Project, with a futuristic perspective. The selected system uses the state of the art technology in the field. Main features of the system include reliance on microprocessors, digital equipment and use of a distributed control system together with a computer to apply advanced control to refinery operations. The Central Control Room consists of a system of CRT (Cathode Ray Tube) video consoles, grouped in a set of usually four CRTs. Each group is called a workstation. The CCR consists of ten workstations including one spare intended for training . Each workstation consists of three CRTs as associated with digital distributed control system (DCS). By the use of DCS, process units can be remotely controlled and operated as far as 5,000 feet. Process indications along with a variety of informative displays required for control and monitoring of refinery operations are available on the CRT screens. 6- Transport and Storage of Coke The coke produced at the delayed coker unit is carried by conveyor belts to the boundaries of Mina Abdullah Refinery where it is then carried in special coke carts to the boundaries of Shuaiba Refinery for storage in special warehouses with a capacity of 70,000 tons of coke. Eventually, the coke is carried to Shuaiba Port on conveyor belts for export. In order to avoid air pollution by dust emitted from the transport and storage of coke, a appropriate precautions are taken against such potential pollution by washing the coke several times prior to storage, for a sufficient period after it has been cut at the coke depots, before being transported to Shuaiba Port is kept under diffused pressure at night in order to prevent the leakage of coke dust outside the warehouses. 29 7- The Sea Island The Mina Abdullah Sea Island is located approximately 16,000 ft offshore (5KM). It consists of two loading berths for exporting liquid petroleum products and importing fuel oils in case of any emergency situation. The seaward berth is capable of receiving tankers ranging from 25 to 276 MDWT and landward berth is capable of receiving tankers ranging from 25 to 140 MDWT. Each berth is provided with six loading arms, four for white oil products and two for bunker/fuel oil products. There are six submarine pipelines and each one is dedicated for the transfer of a particular product. The products transported through these lines are Naphtha, Kerosene, European Gas Oil (EGO), High Speed Diesel (HSD), Marine Diesel Oil (MDO) and High Sulfur Fuel Oil (HSFO). All submarine pipelines are 24-inch except MDO which is 12-inch. The shipping facilities are designed for loading a cargo of 80,000 MT of white oil products in 36 hours and black oil products in 40 hours. 30 The Main Units at Mina Abdullah Refinery Number of Units Total Capacity Crude Distillation Units 2 270,000 bpd RCD UNIBON Unit 1 35,000 bpd Atmospheric Residue Desulphurization Units ARDS 2 84,000 bpd Vacuum Re-Run units 2 150,000 bpd Hydro-Cracker unit 1 42,500 bpd Kerosene Hydro-Treating unit 1 40,000 bpd Diesel Hydro-treating unit 1 40,000 bpd Naphtha Hydro-Treating unit 1 7,500 bpd Dalayed Coker 2 90,000 bpd Mirox unit 2 3,200 bpd Hydrogen Plant 3 144 million cu ft/d Old Hydrogen plant unit 1 26 million cu. ft/d Hydrogen Recovery unit 1 26 million cu. ft/d Sulphur Recovery units 3 270 MT/D Tail Gas Treating unit 2 510 MT/day 31 32 Mina Al-Ahmadi Refinery Mina Al-Ahmadi Refinery (MAA) was built in 1949 as a simple refinery with a refining capacity not exceeding 25,000 bpd to supply the local market with its needs of gasoline, kerosene and diesel. The refinery is located 45 km to the South of Kuwait City on the Arabian Gulf. It covers a total area of 10,534,000 m2. Following the establishment of KPC and the restructuring of the oil sector, ownership of the refinery was passed from Kuwait Oil Company (KOC) to Kuwait National Petroleum Company (KNPC) which became responsible for the oil refining and gas liquefaction operations in Kuwait. In the early 1980’s as part of an overall plan to upgrade the refining industry and expand the refineries , work started on two ambitious projects to modernize Mina Al-Ahmadi Refinery, namely the MAA-Refinery Modernization Project (MAA-RMP) (which was completed in 1984) and the Further Upgrading Project MAA-FUP (which was commissioned in 1986). Within the framework of these two projects, 29 new units were built at this refinery which has now become one of the world’s modern refineries in terms of both refining capacity, which exceeds 460,000 bpd and the advanced technology it employs. Mina Al-Ahmadi Refinery Modernization Project (RMP) was basically intended to provide the local and world markets with low sulphur -content petroleum products, and to reduce dependence on gas as fuel, providing cheaper and more stable fuel to the country’s power generation plants. The Further Upgrading Project (FUP) was based on more comprehensive view of the future of petroleum product markets in order to maximize profits and ensure a stable market for the three refineries output. The project further sought to increase the share of light and medium products of the distillation process and minimize the share of fuel oil in the end output, resulting in a higher return from the crude oil refining processes. The refinery now contains 29 new units, in addition to the old units, including the crude distillation units, the Fluid Catalytic Cracking Unit, the Atmospheric Residue Desulphurization Units, the Vacuum Rerun Unit and the Sulphur Recovery unit. 33 Mina Al-Ahmadi History - 1949: 25,000-30,000 BPD Refinery commissioned under KOC. - 1958/63: Refinery expansion to 190,000 PBD & 250,000 BPD respectively. - 1978: Gas liquefaction plant was commissioned. - 1981: Rhenformer Units commissioned. - 1984: Transfer of MAA Refinery to KNPC. - 1984: Refinery modernization project (RMP) untis commissioned progressively. - 1985: Further upgrading project (FUP) units commissioning started. - 1987: FCC was commissioned - 1997: FCC unit capacity increased to 40,000 BPD (revamp), as part of MAFR. - PRU, MTBE, ALKAYLATION, and SAR units commissioning started. - 2000: A mishap due to a leak in gas condensate line, led to a destruction of several facilities. Immediate rehabilitation took place to repair and replace the damaged facilities. New ATK MEROX unit was commissioned. - 2002: New G.O.D is commissioned in April, 2002. 34 MAA Main Units Crude Oil Distillation Unit: The total capacity of the two new crude oil distillation units is 290,000 bpd. They receive crude feed from the Burgan, Ratawi and other oil fields. In these units, the raw material is separated in the distillation tower into a large number of products such as gas, naphtha, kerosene, light gas oil, heavy gas oil and residues. The distillates of these two units are sent to other conversion units in order to improve their specifications to the required standard. These two units were built as part of the refinery modernization project (MAA-RMP). They supplement the production of the existing crude distillation unit to raise the capacity of these three CDU units to around 466,000 bpd. Fluid Catalytic Cracking Units (FCC) The unit was commissioned in 1986 as part of the “Refinery Further Upgrading Project (FUP)” with a capacity of 30,000 bpd. In 1997, the unit was revamped and its capacity was raised to 40,000 bpd as part of MAFP (which stands for MTBE Alkylation, and FCC revamp Project). Since that time the unit continues to play a major role as a heart conversion unit among the three refineries , where it processes various feed to produce high quality products and feedstock for downstream units for further processing. The unit objective is to produce maximum Liquefied Petroleum Gases (LPG) and Gasoline (Conversation level 79 of LV% to gasoline ). The “Olefin” rich LPG stream (Double Bond Hydrocarbons) is further processed in downstream units to produce Propylene, MTBE and Alkylate. FCC unit consists of the following sections 1- Reactor/ Regenerator 2- Main Fractionators 3- Gas Concentration Unit 4- Power Recovery 35 FEED 40,000BPD (VGO.75vol%, CGO. 26vol%) FCC PRODUCTS VIELDS OFF GAS 4.35 wt% LPG 20.40 wt% LIGHT GASOLINE 32.98 wt% HEAVY GASOLINE 13.37 wt% DISTILLATE 15.94 wt% LCO 0.64 wt% HCO 7.70 wt% COKE 4.62 wt% TOTAL 100.0 wt% Main Units at Mina Al-Ahmadi Refinery Unit 36 No. of Units Actual Capacity Crude Distillation Units 3 466,000 bpd EOCENE Topping Unit 1 24,000 bpd Bitumen Production Unit (Asphalt) 1 11,000 bpd Atmospheric Residue Desulphurization Unit (ARDS) 4 132,000 bpd Naphtha Reforming Units 2 35,000 bpd Kerosene Desulphurization Units 1 20,000 bpd Gas oil Desulphurization Units 1 61,600 bpd Vacuum Distillation Unit 1 85,000 bpd Hydro Cracking Units (HCR) 1 40,000 bpd Fluid Catalytic Cracking Unit 1 40,000 bpd Hydrogen Recovery Unit 1 56,000 MMSCFD Hydrogen production Units 4 198 MMSCFD Sulphur Recovery Unit 4 1,334 MTPD Merox Unit 1 20,000 BPSD CCR Naphtha Reformers 2 Gas Oil Desulphurization Unit 1 61,600 BPSD New Gas Oil Desulphurization Unit 1 70,000 BPSD Tail Gas Treatment Unit (TGT) 3 727 MTPD Sour Water Treating Unit (SWT) 2 1053 GPM CCR Naphtha Reformers After the June 2000 mishap in Mina Al-Ahmadi Refinery, immediate action was taken to rehabilitate the damaged facilities. The company decided to build two identical reformate production units in place of the old destroyed units with state-of-art technology. The new “Naphtha Complex” includes two identical process trains. Each process train consists of a Naphtha Hydrotreater, Naphtha Splitter and CCR (Continuous Catalyst Regeneration) reformers for gasoline production. A dedicated Nitrogen Generation Unit is also being built to cater to N2 requirement for both units. The objective of the complex is to produce reformat with RON of MON of 90.06 and Benzene content of 1.0 vol% max. The complex was commissioned in October 2003. Process Description Naphtha Hydrotreater: Hydrotreating of Naphtha is essential to remove catalyst poisons such as Sulphur, Nitrogen which is catalytically hydrotreated in a fixed bed reactor employing a select catalyst and hydrogen rich stream to decompose organic sulphur, oxygen and nitrogen compounds contained in hydrocarbon fractions. In addition, hydrotreating remove organometallic compounds and saturates olefin compounds. The Naphtha hydrotreating process makes a major contribution in the operations and economy of platforming. Sulphur Recovery Units: Within phases 1 and 2 of Mina Al-Ahmadi Refinery Modernization Project, four units were constructed to recover the sulphur obtained as a byproduct of certain refinery processes. The total capacity of these units is 1,334 metric tons, of sulphur per day. 37 Sulphur Storage and Handling Facility: A special compound was built for the storage and breaking into flakes the Sulphur produced by the three refineries. Here this by product is prepared for export by means of conveyer belts that reach the vessels directly. Originally, sulphur is liquid , then it turns into a solid cohesive mass when it cools. It is flaked into small pieces to facilitate handling. Precautions are taken to prevent air pollution with sulphur dust when it is broken or carried. The sulphur breaking and handling compound at MAA Refinery receives the sulphur produced at Mina Abdulla and Shuaiba refineries from which the material is pumped through pipelines that are heated continuously to ensure the smooth flow of the liquid sulphr. 38 Central Control System: In each of the two stages of the MAA Refinery Modernization Project, a state- of- the - art central control room was established in addition to several local control systems, or sub-control rooms. At Mina Al-Ahmadi, the central control system relies on state-of- the art microprocessor technologies. Each central control room houses several operation stations equipped with monitors linked to a microprocessor that monitors the refinery units. The computer performs an extensive series of operations such as the numerous variable data in the production processes (heat, pressure, etc). The computer displays drawings and plans of the production units with different variable data and the operation status of every unit. The computer also gives alarm messages when any of these values exceed the limits for safe operation. Furthermore, the computer performs complicated mathematical operations required for the control and operation of the units, thus ensuring added security and safety. The CCR also helps in the conservation of energy and accurately controls the specifications of the petroleum products. The New Oil Pier at Mina Al-Ahmadi Refinery The new south pier in MAA was inaugurated in February 2004 as part of the (Construction and Restoration of MAA Two oil piers) the refinery has two oil piers to export crude oil, LPG and petroleum products. SOUTH LOADING PIER (connected with the Refinery) NORTH LOADING PIER (10KM north of the Refinery) The project basically envisaged construction of a new pier to replace the South Pier and restoration of the North Pier so that its life will be extended for 15 year. The New South Pier is the largest and the most advanced marine facility in the Middle East with the state of art technology. The construction of the pier took seven years, four for studies and three for construction. it has six berths for the export of Crude oil, LPG and petroleum products. 39 The New Pier’s Advanced System and Technology - Main Features Number of Mooring Points Tankers deadweight Estimated design life Total of mooring points Total number of Platforms Anchor’s depth 5 160,000 tons 30 years 4300 m 5 17m Petroleum products being exported: - Light and Heavy Fuel Oil - Diesel, Kerosene and Naphtha - LPG - Crude Oil 1- Tankers advanced and satellite connected berth monitoring system that ensures safe and accurate anchorage 2- Sudden-Interruption suction system for petroleum products during loading operation. 40 LPG Plant at Mina Al-Ahmadi Refinery Gas Liquefaction Plant (LPG) at Mina Al-Ahmadi went on stream in 1978. It consists of three trains the capacity of each is 560,MMSCF designed for the extraction of propane, butane and natural gasoline. The plant also consists of storage tanks divided into two tank farms. The greater portion of the LPG plant production is now being exported to the world market from the south pier of Mina Al-Ahmadi which is connected to the plant by a pipeline network. The average daily rate of feedstock to the plant stands at around 1680 MMSCF per day. The LPG plant receives natural gas from Kuwait Oil Company (KOC) gathering centres (26) in located at the various oil fields in Kuwait and liquid gas from KNPC refineries. Propane and butane are exported through the refinery south pier. The mixture of gases is separated in the plant’s units into the following products: Product Capacity ‘000 Bbls/day Liquid Propane (LPG) 100 Liquid Butane (LPG) 55 Natural Gasoline (KNG) 40 In addition to lean gas and residues. 41 The Gas plant was built to process all associated gas/ condensates collected from Kuwait Oil Company (KOC), another KPC company which is responsible for oil / gas exploration & production. It consists of three identical trains with a total processing capacity of 1.68 billion SCF/ day (including 80,000 BPD of hydrocarbon condensate). While the LPG plant essentially produces liquefied propane, liquefied butane which are stored in refrigerated tanks and Kuwait Natural Gasoline (KNG) It also produces high-pressure (HP) and low pressure (LP) lean gases. It should be noted that the LPG plant plays a significant role as the primary energy supplier to power stations, KNPC refineries & PIC. It is also the only petrochemical feed stock supplier of ethane gas to Equate for the manufacture of poly- ethylene. In order to meet the new unleaded gasoline specification as well as to upgrade cracked LPG from the FCC unit, new facilities were added downstream of the FCC unit. These units together called the MAFP block and commissioned in 1997, including facilities to supply propylene product to PIC for the manufacture of polypropylene and to produce Alkylate and MTBE, which are both mogas components. Acid Gas Removel project (AGRP) the AGRP was implemented in the year 2000 in order to treat associated sour gas from the oil fields. In order to meet latest diesel qualities, a new Gas Oil Desulphurization Unit was added to the refinery configuration in the year 2002. Further, two new Naphtha Continuous Catalytic Reforming (CCR) units are built and commissioned in the year 2003. MAA Refinery also houses the control of sulfur solidification and granulation facilities, which serves the three KNPC refineries. MAA & LPG plant employees about 1550 Staff. 42 Gas Plant: (Summary of Main Features) • Located at Mina Al-Ahmadi Refinery. • Consists of 3 Trains of identical capacity each. • Total capacity is 1680 MMSCF per Day (560 x 3 Trains). Processes sweet associated gas & condensate from the crude production. • The process involves separation of liquid products (Propane, Butane and KNG) from the feed & supply lean gas to the end users (mainly Power Plants) & Petrochemicals (Ethane). • Bilding a 4th Gas train is underway and a 5th. train is being planned. Example of liquid products percentage in the LPG plants total production. 2008/2009 43 44 Health, Safety & Environment Safety to KNPC is a core value that enjoys exceptional importance. The company worked so hard in the past few years to promote Health, Safety & Environment best practices and started setting records in the three fields. With regard to safety, KNPC since the year 2000 developed a new safety strategy, by introducing a new management system based on identifying risks and hazards, attacking them, pursuit of systematic auditing that ensures best practices in Health, Safety & Environment performance. KNPC strongly believes that Health, Safety & Environment are core values, that must not be compromised in the name of profits. Safety and Health of those who work for the company are particularly important as they are the company main assets. The company introduced as early as the year 2000, the Safety, Health and Environment Management System “SHEMS” that was designed to have in place an implementable system that identifies risks, remove them through a sustainable system of practices that keep up safety standards as advanced as possible and involves an auditing mechanism in which even the company higher management plays a leading role. Continual development is synonymous to safety in KNPC Refineries and other sites of work. Development of SHEMS was a turning point in the company Health, Safety & Environment strategy. Through its 14 elements it incorporates role for everyone in HSE policy, safety work practices and standards, training and competency. Emergency preparedness, incident reporting and investigation, risk identification and management of change, safety based behavior, roles, responsibilities and assignments for everyone, in addition to commitment to occupational health and Environment protection. People at all levels in KNPC are responsible for implementing the company safety policy. They will demonstrate correct HSE behavior, clearly define rules and responsibilities provide the needed resources and will establish a monitoring system. Along with SHEMS the company Health, Safety & 45 Environment Department continues to promote safety awareness throughout the company with a view to promoting a safety culture inside the organisation, and thereby enhancing safety behavior in the community. The company safety achievements were outstanding with a combined employees-contractor record. As an example the Project Department in the company achieved in the fiscal year 2006/2007 a record of 4.2 million man-hours without any accident leading to lost working case (LWC). The three refineries achieved in the same period millions of man-hours. This is an indicator to the significant improvement in the company safety standards. The company three refineries, the Project Department and the Local Marketing Department also were selected since 2002 to win the prestigious ROSPA award (Royal Society for Prevention of Accidents) a British organization that monitors the Health, Safety & Environment performance of other companies worldwide. Other prizes received include the National Safety Award of the British Safety Council for a number of consecutive years. Consolidated Recommendations صورة غالف الكتاب Following the mishaps at Shuaiba and Mina Al-Ahmadi Refineries in June 2000, an ad hoc committee was set up by the company to implement, audit and certify 58 recommendations intended to be a safety road map for every refinery. The Consolidated Recommendation Execution Committee (CREC) completed its work in the year 2006 as the recommendations were executed in detail, certified and audited. Safety business in the company received a new momentum with this consolidated. 46 Safety Awareness & Culture Lecture on Environment at an elementary school HSE Department in collaboration with Corporate Communications Department, and other departments in the company conducts on regular basis awareness campaigns to consolidate a common culture by which safety practices and measures are exercised in a consistent behavioral routine. The great attention given to safety practices is justified by the fact that the refining industry undertaken by KNPC comes with some risks both for people and assets. The challenge is to identify and abort those risks (HSE Training). Training Philosophy in HSE Department 50000 ExamplesKofNPTraining at HS&E Centre C S H& EIntensity T raining 43173 39042 40000 33999 33903 30000 20000 10000 2862 3346 3371 2 0 0 4 -0 5 2 0 0 5 -0 6 5215 0 2 0 0 3 -0 4 Sessions Attendance 2 0 0 6 -0 7 Training programs are developed and delivered in line with SHEMS Element # 4 “Training & Competency” and on the basis of training need assessment listed in the Mandatory HSE Training matrix. The courses include Safety, Occupational Health, Environment topics and also functional safety courses related to respective discipline. HSE Training is important to KNPC personnel working for or on behalf of KNPC i.e. Contractor & Sub Contractor’s 47 workmen with prime objective to learn, refresh and update HSE knowledge and skills and continually improve on their HSE performance at work. The training on various topics for new recruits, experienced employees and also key persons of the service contractors is carried out through classroom training conducted by HSE Training Center, Safety & Fire Divisions of three refineries, and Environment Division on the job training on safety related topics. Safety talk and Safety Movies are also regularly conducted at operators shelters and control rooms. It is mandatory for all KNPC and Secondment employees to attend HSE induction course prior to joining the department or before the commencement of an assigned job. The course includes Safety fundamentals, Occupational Health & Hygiene and Environment Management System (ISO 14001). New recruits (UDs) attend a comprehensive course organized by Career Development Department which includes coverage on HSE topics. Environment Kuwait National Petroleum Company is committed to the protection of the Environment. This commitment is being translated into hard work and determination to combat pollution at its very sources, especially air and sea pollution. Concrete measures were taken in this perspective to improve the standards of Environment protection including a number of costly projects designed mainly to serve this purpose. 48 Kuwait National Petroleum Company has implemented Environment Management System conforming to ISO 14001:2004 standards. The key aspect of ISO 14001 system is to achieve continual improvement by addressing non conformances and by setting new targets to achieve. Hence audit becomes one of the essential tools to achieve this. Accordingly, external surveillance audits were carried out by M/S LRQA in July 2006 and January 2007 to cover all the sites of KNPC. Auditor expressed satisfaction on the progress made towards implementation of Environment Management System (EMS) and the recommendations of audit is being implemented. In addition to this, internal (EMS) audit was also carried out for all the sites during the year. The certification of ISO -14001 was another recognition of KNPC commitment to the local and world environment. Environment Protection KNPC is committed to the protection of Environment. In recognition of KNPC’s effort to maintain clean environment within its neighborhood, it was awarded On December 2008 the prize of the first position by the Council of Arab Environment Ministers for Clean Product Projects. This prize is awarded to the best scientific researches and studies or the best clean production practices, which resulted in significant impacts that helped in conserving both natural resources and energy , besides cutting down pollution and helping sustainable development. KNPC also won in 2007 the 2nd place of the Kingdom of Saudi Arabia Award for Environment Management organized under auspices of the Arab Organization for Administrative Development – affiliate to the Arab League. To enhance the company commitment to Environment protection a number of projects are currently under implantation such as: 1- Reduction in Sulphur Dioxide Emissions: Tail Gas Treatment Unit (TGTU) project at SHU Refinery was commissioned on 9th October 2006 with the commissioning of this project there is 80% reduction in SO2 emission from incinerator of Shuaiba Refinery. SO2 emissions from incinerator stack of Shuaiba Refinery are now within limit set by Kuwait Environment Public Authority. 2- Odor Management System (OMS): As an Environmental objective for 2006-07, an Odor Management System (OMS) has been developed. A comprehensive report on OMS has been prepared and released for implementation at all three KNPC refineries and Local Marketing facilities. This report describes an Odor Management System (OMS) for KNPC to effectively control and eliminate odor. It elaborates on the Program design and execution, achievements, shortcomings and transition requirements. Accordingly, site committee has been formed at individual sites to co-ordinate implantation of OMS report. The report also proposes a 5 year implementation plan for Odor Management System at KNPC. The three major components of the OMS are leak Detection and Repair, Complaint Recording and Tracking System and Odor stressors identification and control measures. 49 3- Air Emission: Quality of ambient air in any industrial unit has utmost significance, keeping this in mind, KNPC is maintaining 2 mobile ambient air quality monitoring stations which continuously monitor ambient air quality at three refineries. On need basis these mobile stations can be shifted outside also to monitor ambient air quality. In addition to this, periodic stack monitoring of stacks are carried out to ensure that stack emission from these are within the Environment Public Athority limits. Various on line analyses and software based Environment Information Management System (EIMS) module helps in verification of stack monitoring results. 4- Industrial Waste Water Effluent: Industrial waste water is routed to effluent treatment until in all the three refineries before being discharged into sea. Daily regular monitoring of effluent water sample is done by KNPC as well as (Napesco) lab to ensure that various parameters of effluent water is within K-EPA limits. 50 5- Solid Waste Management: In order to further improve the awareness about Solid Waste Management programme at KNPC sites and enforce compliance of solid waste handling, transportation and disposal, awareness courses are regullarly conducted at the three Refineries for the employees. separate courses on Solid Waste Manifest Authorization are conducted on regular basis for selected employees and employees. This was done to ensure that steps involved in solid waste i.e. storage, segregation and disposal to identified destination is carried out as per procedure. During April- March 2006-7 a total 279 employees passed this test and are now authorized to sign waste transportation manifest. In order to reduce solid waste generation, sludge treatment and handling unit at MAB refinery is being operated which processes oily sludge and recovers valuable oil from the sludge which is again sent for reprocessing. The left over solid residue from this plant is only 10% of total volume of sludge processed. Thereby solid waste generation is reduced by 90% from this plant. During the period April- March 2006-07 5350 m3 of oil was recovered by processing 12945 m3 of oily sludge in this plant. 6- Revamp of Effluent Treatment Facility: This common project for all three Refineries will significantly reduce the pollutant in effluent discharge. It is set for completion in August 2009. 7- Oil Sludge Unit: This unit was built at Mina Abdulla Refinery to treat oil sludge from the three refineries. Disposal of this polluting source, as residues of oil and products contaminate the soil and the air became a mission of paramount importance to the company .Within a relatively short time after its commissioning in 2005 ,the result was zero sludge in the three plants. 51 52 Manpower Development at KNPC Since its inception 47 years ago, KNPC witnessed substantial development with regards to the number of employees, the work system and methods applied at its various departments. The number of employees during the first years of operation did not exceed a few hundred employees. However, this number rose to more than 7,500 in the year 1990 before the Iraqi invasion of the State of Kuwait. The percentage of Kuwait manpower grew steadily thanks to the policy systematically implemented by the management, of attracting many young Kuwaitis to occupy technical and administrative positions in the company structure. The increased percentage of Kuwaitis was also the result of career development, training and encouragement of young Kuwaitis to join this continuously growing industry. With regard to the development of work methods and system, KNPC is indeed a leading organization which has always been striving to acquire the latest technologies, not only in the field of refining operations and associated facilities, but also in connection with administrative and technical activity. The total workforce in the company is currently 5200 employees of whom there are 4100 Kuwaitis at the rate of 79.5%. Investment in manpower Development: KNPC has always believed that the Kuwaiti individual is the most important national assets. For this reason, the investment in the growth and development of Kuwaiti manpower, is the best and most feasible investment on the long run. Since the early days of commissioning the company’s refinery at Shuaiba , specifically in the year 1968, the company established a specialized training centre. The first group of trainees that year who graduated from the centre included a number of young Kuwaitis. In the late 1970’s and early 1980’s, the training and development function gained momentum following the transfer of Mina Abdullah and Mina Al-Ahmadi refineries to KNPC. Furthermore, the modernization of Mina Al-Ahmadi and Mina Abdullah refineries in the 1980’s posed a major 53 challenge with regard to provision of well trained national manpower to manage and operate these projects which, practically, involved the construction of two modern refineries. KNPC achieved a considerable increase in the number of national manpower, who starting of the year 1992 began to account for more than 70% of the company total manpower. This is a clear indication of the contribution made by the training and development programs to increasing the number of skilled Kuwaiti manpower in the company as well as the fruit of Kuwaitization policy. Monpower Growth in KNPC and Kuwaiti Employees Percentage The company has always given due attention to the various aspects of training including the training of personnel of the Support Services Departments Ahmadi, Shuaiba and Mina Abdullah refineries .Training at KNPC is an on-going process that starts during the first month in which the employee joins the company, with an orientation program during which the employee becomes familiar with the work of the company and the relationship between his department and other departments and sections. On job trainting program, is another important tool to upgrade skills of the newly recruited engineers. This program assigns a numbers of empluyees to one or more instructures who will assist them to master the equipment under their responsibility. Training is often provided in collaboration with various local and international bodies and organizations. It also includes training programs outside Kuwait. Furthermore KNPC sponsors refinery operators specialization at the Technological Studies College of the Public Authority for Applied Education and Training (PAAET). Students receive monthly salaries during study time while graduates who meet certain requirements are guaranteed jobs at the company refineries immediately after their graduation. Thousand s of KNPC employees are recruited in different types of training course or programs every year. Many of these course s are usually held outside Kuwaiti by professional institutes or agencies. An example 458 employees received training in 308 courses outside Kuwait in 2006 while almost a similar number received training outside Kuwait in 2007 and 2008. Training and Career Development has always been a core objective for KNPC, it goes unabated and continue over the year involving all types of employees starting from top management downward to new recruits. 54 55 56 Social Responsibility The concept of social responsibility is rather a new doctrine. It goes back to the late 70’s but it gained momentum in the UN Environment and Development Earth Summit which convened in Rio de Janiro, Brazil in 1992. The conference called on developed nations to live up to their responsibilities in promoting economies of the under developed countries and furthermore, to adopt a policy for sustained contribution to the development. Within this perspective a demanding cause has emerged for which the social responsibility of private companies and governmental organizations asserted itself as a prime objective. Sustainability and Social Responsibility became a mandatory commitment not only to the stakeholders, but to the community at large. KNPC is no exception but rather a player in the frontline. The concept of social responsibility has motivated big companies to give priority to their involvement in social development and environmental protection. In fact the evaluation of private or governmental company is no more measured by its profitability only, but also by its interaction with the tempo of economic, technological and administrative development Locally and worldwide. One of the leading features of this development is the social responsibility of the private companies because they cannot claim to be isolated islands within their societies. The company every year organizes more than one extensive campaign to donate blood to the Blood Bank,The Bank officials commended KNPC employees as the top donors among the country institutions. KNPC is also actively joins relief aid the victims of natural disasters in many parts of the world through the authorized agency,Kuwait Red Crescent Society . KNPC systematically engaged in social, cultural and 57 sport activities in the country. Environment protection including the manufacturing of Environment Friendly Fuels, is also a prime goal for KNPC in a concerted effort with the rest of Kuwait Oil Companies. Improvement of environmental condition is an integral part of the Corporate Social Responsibility (CSR). CSR exercise is strategic goal for KNPC, which believes that it is not evaluated by its ability to maximize returns to owners only, but also by its contribution to the society welfare, involvement in educational, cultural, social and sport activities and especially by its contribution to domestic and international environment protection. In this sense Corporate Social Responsibility is now a major factor in the organization’s image for the public and for its stakeholders as well. KNPC believes that delivering its social message can be achieved through a variety of channels earmarked to interact and strengthen cooperation with the community nonprofit organizations and interest group especially those that actively function in the social service field and care about people of special needs. Plans have already been drawn, and policy for social sponsorship patterns have been worked out to render this social commitment to be more systematic and more sustainable in both financial and administrative terms. The examples that demonstrate the Company concern for contribution to the social cause are numerous indeed and reflect the level of awareness of this obligation on the part of both the management and the employees. KNPC awareness of its corporate social responsibility is the driving force behind its effective participation in a wide range of cultural, educational, sport and environmental activities. Its partners in this area range from some individual athletes and players to the various universities, Kuwait Red Crescent Society, Kuwait Centre for Autism, the Blind and Deaf Societies etc…… The company joins the Blood Bank campaigns to raise their stock of blood groups. In fact KNPC organizes every year more than one campaign for voluntary blood donation. The Blood Bank officials recognized and commended KNPC employees as the top donors of blood among the Kuwaiti institutions. In other cases the Company made major contributions to the national efforts to provide relief aids to various countries hit by natural disasters either by funds raised by the employees or from its own budget ,or, more frequently, from both sources. 58