4 - Kuwait Oil Company

At KOC, the Asset Action Planis always derived from BusinessGuidelines and aligned with KPC-KOC strategic objectives.The very purpose of the AssetAction Plan is to formulate thedirections, projects, technologies,important initiatives, the quality& quantity of skills required,supports required from thesister directorates, identifyingthe external & internal risks andactivities required to deliver thecore business and to achieve thecorporate objectives.WK Asset Action Plan:our long-term objectives outlinedin the KOC 2030 Strategy. Thesedirections are provided throughestablishing performance targetsand guiding principles for planningpurposes. Planning Group releasesthe BGs and Asset Action Plantemplate in October each year.• Establishment of Core Team inWK DirectorateThe Core Team is responsible forthe preparation of AAP and iscomprised of members from thePlanning (WK) Team, all teams in2030Strategyprepare the best plan to fulfillthe Assets Goals & Objectivestaking into consideration thenew challenges in gas flaring,sustaining production targets, watermanagement, sub-surface potential,reservoir management, major &other projects delivery, skilledmanpower, etc.• Development of the PlanDocumentThe Planning (WK) is assigned todevelop the different sections ofthe Plan document – as detailedbelow - and assure compliancewith guidelines and procedures.Generally this milestone iscompleted by the month of Januaryof the next year, and during thatperiod several interim reviews aretaking place with stakeholders.BusinessGuideline• Finalization of the AAPand presentation to WKManagementThe final step prior to submissionof the AAP document to PlanningGroup per the due date is toreview the whole Plan documentand present its outcomes to WestKuwait Management for their finalendorsement.Capex/OpexAllocationAssetActionPlanProjectsinitiationthrough PGS5 Year PlanMain Sections of the AAPdocument:1. DMD’s MessageAAP Preparation Guideline- Chronological Order:• Release of KOC BusinessGuideline/AAP TemplateThe most critical purpose of theBusiness Guideline is to provideKOC Assets and Groups with ahigh-level direction of where and,to some extent, how we want tomove our company forward in thenext several years with an eye onBalancedScorecardWKD and support groups in KOCsuch as Drilling, Well Surveillance,Major Projects, R&T, etc. Thispractice eases the communicationsbetween Planning (WK) Teamand other groups in additionto expediting the availability ofinformation for timely submissionof the Plan. The Core Team shallThe Vision and Mission of WKD.Identifying key goals from nowuntil 2030 that should be achievedby WK groups to support the KOC2030 Strategy.2. Historical PerformanceIllustration of current year keyperformance measures comparedto last year’s (Production, wellsdrilled, reserves, Capex/Opex,workover jobs). This is in additionto indicating successes of eachGroup and major accomplishmentsof previous years.October - December 2012 9