Kuwait Energy
EL-12-211107
SITE VISIT REPORTS
AI
INTRODUCTION
GCA undertook site visits to BEA and Area A, both in Egypt, in March, 2013. At that time,
GCA had been engaged to prepare a Competent Person’s Report for a possible IPO in
mid-2013, which was subsequently postponed. At the time, GCA did not consider it
necessary to visit Abu Sennan (Egypt), where small-scale production had begun in 2012
with rented facilities being used. For Block 5 in Yemen, GCA asked KE to complete a
detailed questionnaire regarding the condition and operation of the asset; a
comprehensive response including photographs was received and GCA concluded that
no site visit was necessary to that asset. These are the only assets operated by KE
where production is currently taking place.
One of GCA’s facilities engineers conducted the site visits to Area A on 25
th
March, 2013
and to BEA on 27
th
March, 2013. Part of the day between these visits was spent at
Kuwait Energy Egypt’s (KEE) head office in Cairo.
This report summarizes GCA’s visits to the Egyptian assets and the information provided
by KE on Block 5 in Yemen. Subsequent to the visit, the facilities at BEA have been
substantially renewed and up-graded; GCA has not re-visited the site, but the text below
has been modified to reflect the changes.
AI.1
SITE VISITS – EGYPT
AI.1.1
Conclusions
Although KEE was clearly putting effort in to improving safety standards and at the same
time to increase production (no LTI had been recorded at any of KE’s sites in the past
three years), at the time of the visit, site operations did not yet fully comply with the
requirements of KE’s corporate HSSE policy and site personnel were not necessarily fully
aware of those requirements. Specific items noted by GCA were that flowlines into
Shukheir NW plant needed to be separated from motor traffic by a suitable barrier (KE
has subsequently advised GCA that this issue has been addressed), and that more
fencing was generally required to segregate areas, especially at BEA, in order to provide
a more secure environment.
Although KEE is the Operator for Area A, the facilities are owned and maintained by
EGPC. BEA is operated by a Joint Venture (JV) company owned equally by the
Contractor Group (KEE 75%, Gharib Oil 25%) and EGPC. KEE is not therefore directly
responsible for inspection and maintenance of the facilities; nonetheless, GCA
considered that KEE’s formal documentation processes and recording of activities such
as inspection and maintenance records needed improvement.
At the time of the visit, plans were in place to install new facilities at BEA, where the
existing facilities were in need of replacement. Petromaint, an Alexandria based
company, had been contracted to supply and install the new equipment based on a
statement of requirements. The relevant documentation was not available for inspection
at the time of the visit, but was subsequently supplied to GCA. GCA’s overall impression
was that project planning and organization needed improvement.
