logologo #KuwaitOilGas October 2022

Interviw with Mr. Jamal Jaafar, CEO, KOC

1. What do you think are the main opportunities and challenges in Kuwait’s energy industry?
Global oil and gas consumption continue growing and it represents 57% of total primary energy
consumption in the world, and both fuels will continue being the main source of energy for several years
to come. That represents a strong opportunity to expand our market share through OPEC. KOC
continues being recognized as one of the largest oil & gas companies in the world, and we have been,
for several years, focused at implementing a growth strategy, given our large reserves base and our
advantage of having the lowest costs in the world.

Certainly, these growth opportunities will face important challenges. We are moving to develop
production in more complex reservoirs onshore that will require the application of advanced production
techniques. We are also going to initiate the development of the offshore oil & gas resources in the
upcoming years. I would say that the most significant challenge would be to keep our staff updated in
the knowledge of the oil & gas business and in the implementation of new technologies that we will
need to develop our resources. That is requiring a strong effort in training and in the transfer of
technology from our technology-providing partners to the new generations of professionals through an
integrated and collaborative work environment. Knowledge and experience are critical success factors
to achieve our vision and our strategic targets.

2. How do you see the future of relationships between K companies and the 10Cs?
I can summarize this future in two words: Integration and Collaboration. The participation of the 10Cs
through the Enhanced Technical Service Agreements is becoming a win-win relationship with KOC, not
only through the technical support received from them, but also through the knowledge transfer that is
taking place that is certainly benefiting our Kuwaiti staff and organization. We need to go proceed in this
integrated and collaborative model of participation, and therefore, I can see a strong relationship with
them.

3. What are KOC’s main objectives for the next five years? How do you plan to achieve these?
KOC is targeting to increase the oil production capacity to 3,650 MBOPD by 2020, from current 3,150
MBOPD and Non-associated gas to grow from around 200 to 500 MMSCFPD. There are several projects
at different stages of implementation that are making Kuwait’s oil and gas industry one of the most
active in the world and fastest growing.
By the first quarter of 2018, three new facilities will allow KOC to increase light oil production by 120
MBOPD, together with additional 300 million standard cubic feet of non-associated gas from the Jurassic
reservoirs located in North Kuwait.
We are going to commission three gathering centers now under construction in North Kuwait. Overall,
these new GCs will add 330 MBOPD of capacity by 2018, providing a very important contribution to the
increase of total KOC production capacity.
We will start heavy oil production from Lower Fars in North Kuwait, and by 2020, we will be producing
85 MBOPD (60 MBOPD of Ratqa and 25 MBOPD from Un Niqa). The development of heavy oil
production is being done in parallel with the construction of AI-Zour refinery by our sister company
KIPIC. Both projects represent an important challenge to our companies, and a constant coordination
between us is taking place on a regular basis to ensure a complete success in their commissioning.
We are also undertaking water injection projects in South and East Kuwait; a new booster station to
increase gas-handling capacity and to continue reducing flaring in West Kuwait; and the power
substations needed to provide energy to these facilities.
At the same time, an intense drilling campaign is significantly increasing the rig count. Current drilling
activity across all fronts – existing reservoirs, new areas, heavy oil and Jurassic gas – is the highest in
KOC’s history.

All these projects constitute an immense effort carried out by KOC to ensure the achievement of our
strategic targets by 2020.

4. What are you expecting to get out of the Kuwait Oil and Gas Summit 2018?
I expect participants to go deeper in analysis and discussions that would identify feasible solutions to the
main challenges that KOC is and will be confronting in the future. This summit will be also a great
opportunity to move forward in the collaborative environment needed among our internal teams and
with the service companies and the 10Cs that are working together with KOC to help us achieving our
strategic targets.

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