Bond Offering Memorandum 23 July 2014 - page 371

Kuwait Energy
EL-12-211107
A good feature was KEE’s stated policy of providing an HSE induction program for all
visitors and new assignees in the form of 30-minute presentation by the site HSE
superintendent; the presentation was given to GCA at both Area A and BEA.
AI.1.3
Area A
This hydrocarbon producing area is located in the Eastern Desert in the region of Ras
Gharib, covers some 300 km
2
and contains five fields that are currently producing:
Shukheir NW, Shukheir, Yusr, Kareem and Ayun. Hydrocarbons have been produced
since the 1960s, and at the time of the visit there were 46 producing wells and 100+
abandoned wells. Gas (owned by the concessionaire) was being flared, though KE was
pursuing negotiations to find a way to commercialize the gas. The Area A
accommodation and storage sectors, Shukheir NW production site and the new water
treatment and injection facilities (near Yusr) were seen during this site visit, though not
the Yusr, Kareem, Ayun, or Shukheir production sites.
AI.1.3.1 HSE
Area A provided accommodation for the operatives in the form of 2 and 4-man
caravans, all of which were in reasonably good condition. Recreational facilities (a
separate caravan and a football field) were present in addition to a designated
smoking area. The accommodation catered for up to 100 personnel allowing for
two 50-man, 12-hour shifts; operations personnel were rotated on a 2-weekly
basis. Messing facilities were provided in a separate caravan that appeared clean
and tidy. Water was stored on site for bathing and washing and potable water
was available in bottles.
The accommodation area was fenced off from the surrounding field area and had
a gated entrance; overall the set-up looked safe and professionally arranged.
There were no apparent security provisions over and above the fencing, but the
Operator considered the area generally safe and was comfortable with the
security provisions. On the other hand, the production area at Shukheir NW and
the well sites visited by GCA were not fenced.
Personal protection equipment (PPE) in the form of hard hats, sturdy shoes/boots,
protective eye wear and coveralls were being provided to the operatives and,
based on those seen working on site, they were being used properly.
Firefighting equipment was provided throughout the areas inspected in the form of
portable units with carbon dioxide or foam as dousing fluid. The equipment
appeared to be of good quality and looked to be adequately maintained, but no
tests were undertaken on the equipment. Firefighting trucks were available from a
station located some 3 km away.
It was not obvious that special storage places were provided for hazardous
material, though the new production workshop and storage area adjacent to it had
ample space to construct a hazardous materials storage area, if required. No
hazardous material was seen on the site.
No lost time incident (LTI) log was seen by GCA, but the HSE superintendent on
site informed GCA that no LTI had occurred since November, 2008. Subsequent
to the site visit, KE supplied a corporate register (in the form of an Excel
spreadsheet) containing LTI information dating back to 2010; no LTI was recorded
therein for any of KE’s assets.
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