 KNPC (Kuwait National Petroleum Company), Kuwait’s refining arm and part of KPC (Kuwait Petroleum Corporation), is responsible for all domestic refining activities in Kuwait through its three refineries. Shell Global Solutions has been working with KNPC to resolve some of the challenges facing the company’s three refineries. KNPC participates in the Solomon Survey, a bi-annual process which compares the world’s refineries with one another on many different factors, such as efficiency, maintenance costs, safety, yield and manpower. On the subject of maintenance reliability and integrity, Sami Al-Rushaid, Chairman and Managing Director of KNPC, said, “After examining the results of the Solomon Benchmarking Survey, KNPC studied how it could improve the reliability of its refineries. We chose Shell Global Solutions to work with us on this because we believed Shell Global Solutions had a very good programme, and I am pleased to say that this has proved to be the case. “Shell Global Solutions has been working with staff at both Mina Abdullah and Shuaiba refineries, implementing a system called MERIT [Maintenance Enhancement Reliability Improvement Team]. MERIT is a programme designed to improve maintenance practices and the reliability and integrity of Kuwait’s refineries whilst bringing Shell’s knowledge and experience of refinery operations to be shared with staff here at KNPC. “Frankly speaking we are very pleased with the reliability programme. It is helping KNPC not just to improve reliability but to improve some of the production processes at the refineries. Shell Global Solutions’ efforts are also complementing the work we have started to upgrade safety standards and our safety management system. So I honestly think that Shell Global Solutions provides a first-class product and is very professional in its approach.” As for the future, he said, “As with many refinery operators, Kuwait still faces the challenge of finding a market for its oil in the international market. KNPC is a big player in Kuwait’s oil industry and a major earner of foreign revenue for the State of Kuwait so we have a responsibility to the country which must not be taken lightly. “The global market for refined oil products has today seen an increase in demand which we have not seen in the past 10 years or so. Today refining margins are excellent, better than they have been for many a year. I do not think that they will stay that way but we live in hope. “There is a demand for cleaner and more environmentally friendly products. The environmental regulations in general are challenging for us and the competition with other fuels, such as gas, is a concern. Increased competition, both from within and outside the Gulf, to find new markets and strike up long-term strategic international partnerships is yet another pressing concern and KPC is working hard to develop new markets and joint ventures. “Shell has always been a purchaser of KNPC’s refined products, a lifter of Kuwait’s crude oil, and Kuwait has had a long relationship with Shell. The KNPC lube oil plant, which was recently divested, was built by Shell and KNPC in the late 1970s, and when we started producing lubricants in Kuwait we used Shell formulations. Shell was also involved with Kuwait in the upstream sector in the past when Kuwait was trying to develop its offshore gas reserves.” On the subject of increased IOCs (International Oil Companies) involvement in Kuwait’s upstream sector, he said, “If Kuwait intends to maximise its production, as is the stated strategy of the Government, and to raise its production capacity from today’s level of two and half to four million barrels of oil a day, then we need to invite the IOCs to help. “Not only will the IOCs bring investment but also much-needed technology and training for staff within Kuwait’s oil and gas sector. At KNPC we have 5,600 staff and training is a major priority. Shell Global Solutions has a plan on the table, which we are examining, to set up a competency-based training system to help develop staff.” He concluded, “Shell is one of the world’s leading oil companies and I have great respect for Shell, as indeed I have for many other major oil companies. Shell has some of the highest standards in the world, which make the company stand out from the rest. Here at KNPC we are adopting Shell’s engineering standards. Shell is also known for its quality of technology and for being a leading developer of new technology. Once again, so are many other IOCs, but Shell has the reputation not just for having the best but for using the best when it comes to the selection of materials, going for quality and not cutting corners when it comes to safety. “So there is no compromise on safety and quality when it comes to Shell,” said Sami Al-Rushaid.
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