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Kuwait Oil Company Gas Flaring

Global Gas Flaring Reduction Partnerships (GGFR)


Steering Committee

Washington DC, USA


November 2011

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KOC Gas & Condensate Handling


Kuwait Oil Company Kuwait National Petroleum Corporation
Jurassic
EPF-50 HP Gas KOC Fuel Gas
Requirement
HP Fuel
Relief Stacks Imported LNG

Rich Fuel Gas


SEK / NK
NK GCs Coanda
HP Gas MEW,
Flare HP Lean (Fuel) KNPC,
Gas (Mainly C1) EQUATE

LP Fuel
Relief Stacks PIC,
LP Gas LP Lean
BS-131 Burn-Off Pit SHU,
(Fuel) Gas MISC
LPG Rich
By-Pass
Ethane EQUATE

LPG MAA
HP Gas LPG EXPORT
SEK
GCs
LP Gas Slug-
BS-140 HP Export Rich Gas Catcher Pentane
BS-150 Pig-Trap
C5+ (KNG)
Condensate

WK Gas
Sweetening
Facility

AGRPs MAA & SHU


WK GCs

Slug-
Wafra HP Sour Rich Gas Catcher
BS-170
JO Gas Pig-Trap
Sour Condensate

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Future Plans & Projects

Current exports to KNPC are about 1.25 1.40 BSCFD Rich Gas &
about 50 M BLPD condensate. The total gas production after
development of all phases of Jurassic, KGOC and Others is aimed at
about 4.0 BSCFD by 2030.
KOC has a corporate mission to achieve gas flaring of < 1% of its
production by end of 2012-13. Currently it is ~ 1.15%.
KOC is building new booster stations and new rich gas & condensate
export pipelines in all assets to increase reliability / availability of surface
facilities.
New large diameter fuel pipelines are being built to feed power stations
with alternate / back-up fuels besides gas, supply of which is limited.
New motor-driven Tank Vapor Compressors (TVCs) are replacing old
machines and efficient air-assisted flares are replacing obsolete flares
thereby maximizing gas utilization.

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KOCs Flaring Vision


Where we were Where we are Where we aim

17.18% 1.14% < 1.0%

2005-06 2011-12 Q2 2012-13


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KOC Gas Flaring Over The Years


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KOC Flaring Over The Past Few Years:
As % of Gas Produced
17.18%

15
Flaring, as %age of Gas Production

% : Target / Plans

% : Actual Performance
9.94%
10

7.72%

5 4.80%

3.98% 3.40%
2.30%
2.60% 1.80% 1.00%
1.75%
1.14% YTD Sep 11
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

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How Much Did It Cost?


Millions ($)

700.0

614.9

600.0

500.0

400.0 347.6
Millions ($)
273.8
300.0

200.0 152.7
100.3

100.0 71.2
24.4

0.0
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
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What Does It Mean?


# of Wimbeldon Stadium fields with 1 ft thick Carbon

300 267

250

200
151
150 119

100
66
43
50 31
11
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
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What We Have Done?

40,392 houses have been powered over 5 years since the start
of the flaring reduction program
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KOC 2011-12 Flaring Summary (YTD Sep11)


Flaring Targets For KOC 2011-12
S&EK NK WK EPF-50 KOC
Stretch 0.55% 1.70% 4.00% 1.15% 1.70%
Target 0.60% 1.80% 4.20% 1.20% 1.80%
Threshold 0.65% 1.90% 4.40% 1.25% 1.90%
KOC Flaring 2011-12 : YTD September '11
10 40

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Flaring as % of Production
8
Actual Flare Gas Quantity, BSCF 30

Revenue Savings 6.27


Actual Falre Quantity, BSCF
Revenue Savings, Million $
Flaring as % of Production

25
6

21.07
20

4
15
11.73 3.031
2.50
10
2
4.44 1.14
0.77 0.725
0.919 5
0.63 0.540
0.848

0 0
S&EK NK WK EPF-50 KOC
Notes:
1. Asset-wise Flaring Targets as finalized with assets.
2. EPF-50 figures include acid gas & hydrocarbon gas Flared
3. WK figures include gas flared in WK on account of non-availability of KNPC AGRP & hydrocarbon gas flared at GSF
4. For monetization of flared gas / savings, the budget 2011-12 (May 2010) values of Basis for Economic Evaluation have been used.
5. June Gas price of 4.5$/MMBTU is considered. 9
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KOC 2011-12 Flaring Summary


(YTD September 11)
Asset-Wise Break-Up from Overall KOC Flaring

EPF-50: SEK:
919 MMSCF 848 MMSCF
30% 28%

WK: NK:
540 MMSCF 725 MMSCF
18% 24%

YTD Sep 11 KOC Flaring = 3.031 BSCF

Notes:
1. Non-KOC Operated Facilities include KNPC Gas Plants (LPG & AGRPs), Jurassic EPF-50 & WK Gas Sweetening Facility (GSF).
2. EPF-50 figures include acid gas & hydrocarbon gas Flared
3. WK figures include gas flared in WK on account of non-availability of KNPC AGRP & hydrocarbon gas flared at GSF

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How Did We Do It?


Gas Flaring Related Capital Projects
Projects Completed

Project Title Cost


Million ($)
Upgrading of LP Gas Network in SEK 23.0

Modification in Tank Vapor System in EK GCs 40.1

New 30 HP Export Gas Line from BS-140 to GCMB 8.8

Facilities Modernization Project in SK (including 3 New Condensate Recovery


886.1
Units in GC-3, 4 &6)

Facilities Modernization Project in EK (including 8 New Condensate Recovery


1417.5
Units in GC-1, 2 , 9, 10, 11, 19, 20 & 22)

GC-28 Capacity Expansion (Including 3rd Compressor Train) 97.9

Gas Sweetening Facility in WK (EPF) 22.6


New Booster Station BS - 160 at SEK facilities 570.0

40"Gas Line from BS-131 (NK) to LPG Plant (MAA) 509.3

Installation of New Air-Assisted Flare Stacks at GC-17 /27 / 28 & BS-170 &
29.9
Liquid Separator Area Near GC-11

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Gas Flaring Related Capital Projects


Projects Under KOC GATE
Projects Awarded System & Contract Action
Project Title Cost
Million Project Title
($)
Improvements to Existing Booster Stations BS-140 &
New Booster Station BS - 171 at West Kuwait BS-150 including new smokeless flares
906.3
Area.
Replacement of 40 HP Export Gas Pipeline from
New Booster Station BS - 132 and enhancement M/F-GCMB to LPG Plant (MAA-02).
721.2
of BS 131 (NK)
3 New Tank Vapor Compressors in GC - 7, 8 & 21 121.7 Replacement of 16 Condensate line by a new 20"
pipeline from GCMB Manifold to MAA-02
GCP for GC-16 & Gas Re-Injection Project 75.1
New 24" Export Gas pipeline & 14" condensate
pipeline from BS-171 to AGRP-MAA
MAA - Sabiya/Doha Fuel Pipelines (EF/1713) 1404.8
14 New Multi-point Smokeless HP flares at SEK GCs
MAA - Azzour/Shuaiba Fuel Pipelines (EF/1760) 833.3

With Total Cost of 7.9 Billions $

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THANK YOU

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