Bond Offering Memorandum 23 July 2014 - page 378

Kuwait Energy
EL-12-211107
AI.1.4
Burg El Arab (BEA) Field
This field is located in the Western Desert of El-Alamein, some 15 km off the main Cairo
to Alexandria Highway. At the time of the visit, the field was producing approximately
1,700 bopd and 700 bwpd. Total field area is approximately 72 km². BEA is operated by
a Joint Venture (JV) company owned equally by the Contractor Group (KEE 75%, Gharib
Oil 25%) and EGPC. GCA understands that the JV is staffed by personnel from KEE and
EGPC, and for each management position occupied by an EGPC employee (e.g. the
Chairman) there is an equivalent position (e.g. the General Manager) occupied by a
Contractor Group (usually KEE) employee.
AI.1.4.1 HSE
At the time of the visit, water for washing was provided and stored in two metal
and one concrete tanks adjacent to the production area. Potable water was
delivered to site in plastic bottles. Accommodation with messing facilities was
provided on site for 15 personnel. The site personnel operate on a 12-hour shift
and 2-weekly rotation basis.
There was no fencing at all around the site or between the accommodation unit
and production area. Well areas were not fenced off and in one location the well
pit was only partially surrounded by metal barriers. Some security (against the
intrusion of stray animals) was provided through the employment of Bedouins who
had accommodation in a caravan separate from the other personnel. The area in
the vicinity of the field is heavily mined so human trespassers are not likely to be
in the area. However, the field still required a substantial amount of fencing to
prevent damage from stray animals – camels, sheep and goats.
Firefighting equipment was provided in the form of portable extinguishers
containing foam and/or carbon dioxide. These were spaced at convenient
intervals over the site and in the accommodation unit and should prove adequate
for anything other than a major conflagration or explosion.
The site had an agreement with the local El-Alamein hospital located some 15 km
away, which covers ambulance service and treatment at the hospital. GCA was
informed that all site personnel have been given first aid training and first aid kits
are available in the accommodation unit and site office.
The Operator had identified the presence of H
2
S in one well and had taken
precautions to handle the gas (a scavenger was used to strip out the H
2
S from the
crude at the wellhead) and to keep staff safe. Safety measures included written
instructions on what to do in case H
2
S is encountered or its presence is
suspected. Six H
2
S pocket alarms were provided on site and staff going near to
the H
2
S well site had to wear this gadget, which gives off a loud noise that only
stops when the presence of H
2
S is no longer detectable. A total of seven H
2
S
resistant suits, complete with breathing apparatus were also provided, three with
30 minutes capacity and four with 15 minutes.
Access from the main road to the site was provided by an initial stretch of badly
maintained tarmac road (approximately 5 km long) followed by a stretch of
compacted sand and stone road and finally approximately 3 km of good quality
sand and oil road. Internal access roads were adequate and of compacted
sand/stone construction.
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