Bond Offering Memorandum 23 July 2014 - page 373

Kuwait Energy
EL-12-211107
commissioned in June, 2013 and the other in March, 2014. A production
workshop has also been constructed at the production site and was commissioned
in February, 2014.
Though the plant had not been in place for a long time (approximately 3.5 years),
the manufacturer’s nameplate on the separators was not easily legible because
the equipment was second hand when installed and at the time of the visit, the
plates were greasy. Name plates on all equipment should be kept legible to
enable capacities, manufacturers’ names, etc, to be seen clearly. KEE
subsequently advised GCA that it had cleaned all the name plates and they were
now legible.
All new engineering and construction contracts, it appeared, were placed with
Petromaint, an Egyptian engineering and construction company owned by EGPC.
It was not possible to ascertain the level of experience or capability residing in
Petromaint. GCA was led to believe that replacement equipment and materials
would be sourced locally.
No inspection and maintenance records were presented during the visit. KEE
explained that the facilities are actually owned and maintained by EGPC, who
keep the original maintenance records. KEE receives reports from EGPC
detailing maintenance and examples of some of these were subsequently
provided to GCA. Nonetheless, GCA considered that KEE’s formal
documentation processes and recording of activities such as inspection and
maintenance records needed improvement.
A work-over rig was being assembled on site at the time of the visit but it was not
possible to inspect the work. Well operations generally seemed to be executed in
a reasonable manner, the only reservation being the fact that well pits and general
well areas were unfenced. KE subsequently advised GCA that fencing around
wellhead areas is 80% complete.
Construction of new water treatment and injection facility in the vicinity of Yusr
field in the centre of Area A was around 90% complete at the time of the visit (KEE
subsequently advised GCA that the facility was commissioned in April, 2013). The
plant consists of a collection/separation tank for produced water, two-stage sand
filters, cartridge filters, and transfer and injection pumps, and has an injection
capacity of 2,000 bwpd. The plant was being supplied by a local company,
Sigma, and the work appeared to be of reasonable quality.
AI.1.3.3 Personnel
As already noted, there were 100 personnel on site at any one time. About 20%
of these were contract personnel.
The organization of the site personnel was not immediately obvious and no printed
organizational chart was seen at the time of the visit. A plant operations
supervisor was introduced as well as the site HSSE supervisor. Subsequent to
the visit, satisfactory organization charts linking the corporate structure with the
site personnel were provided.
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