YEAR

EVENTS (1981-1985)

 1981

- KUFPEC founded office established in London.

 1982

 1985

- Declaration of commerciality of Amal Field, Gulf of Suez, Egypt.

- Entered Block B, south Sudan.

- Anoa field development agreement signed with PERTAMINA.  Development plan calls forsingle fixed production platform and a leased FPSO vessel.  

 1987

 1988

 1989

 1990

- First Production from Anoa field in Indonesia.

- Nine production wells drilled on Anoa field. Anoa field commenced production in November.

- KUFPEC obtains 280,000 barrels of net oil for year.

- Acquired an interest in the Jannah Block, Yemen.

 1991

- Discovered the Jannah gas,condensate and oilfield, Yemen.

- First Production from Yombo field in Congo.

- First Production from Sidi El Kilani Field onshore Tunisia.

- Two Anoa wells converted to gas injection.

- KUFPEC share of oil production climbs to 2.678 million barrels for year.

- First Production from Camar field in Indonesia.  

 1992

- Gajah Abu-Abu drilled as successful oil and gas well.

- Entry in development license Gas/Condensate discovery in Egypt.

- China Yacheng gas contract signed.

- Harriet Gas Gathering Project Commenced Operations.

- Discovered the  Kharir oilfield, Yemen

- Discovered the Halewah gas,condensate and oilfield, Jannah Block Yemen  

 1993

- Discovered the Atuf oilfield, Yemen.

- Discovered the Dhahab oilfield, Jannah Block Yemen.  

 1994

- First gas production from Kadanwari, Pakistan.

- 40 MMSTB Oil field discovery in Seram Island in Indonesia.  

 1995

- Discovered the Wadi Taribah oilfield, Yemen.

- Discovered the Al Nasr oilfield, Jannah Block, Yemen.

- Development Phase completed for Yacheng field project in China.

- Oil and Gas Discovery in Wonnich in Australia.  

 1996

- First Production from Yacheng in China.

- Access Agreement signed for Varanus Island (Harriet Block).

- Oil production commenced from the Jannah fields in Yemen.  

  1997

- Several new Harriet gas sales contracts signed.

- Western Geophysical acquires US$ 3.5 million 3D seismic program over the Gajah Abu-Abu, Gajah Puteri and Lembu trends.

- Gajah Puteri-2 gas/oil discovery drilled.

- 1993 Incentive Terms package awarded to Seram PSC exploration area.  

 1998

- Joint high-resolution 2D seismic program recorded.

- Pelikan-1 was completed as a gas discovery.

- Two Anoa development wells were drilled and an oil leg discovered in the A3 sand.

- KUFPEC spuds Oseil-2 and Oseil-4. Oseil-2 was drilled to a TD of 7413 ft RKB and Oseil-4 was drilled to a TD of 7640 ft RKB. Both wells were suspended as future oil producers.

- ARCO’s interest was purchased by KUFPEC.

- Rose gas-condensate field discovery (Harriet block).

- Gipsy oil field discovery (Harriet block).

- Oil production commenced from East Shabwa fields, Yemen

- Discovered the Zanzama gasfield, Pakistan  

 1999

- Wonnich gas field into production (Harriet block).

- Lee gas-condensate field discovery.

- North Harriet oil field discovery.

- Second gas pipeline installed to mainland (Harriet block).

- Farm-in to offshore exploration block EP363.

- KUFPEC joins W. Natuna consortium to supply gas to the Sembawang Gas Co. -Singapore.

- A regional geological study was completed over the W. Natuna Basin.

- Agreement reached with PERTAMINA to extent the Seram (Non-Bula) PSC for 20 years, effective 1st November 1999.  

 2000

- Naga-1; Iguana-1 and Gajah Baru-1 were all drilled as gas discoveries.

- Betet-1 was P&A’d as a sub-commercial oil discovery.

- PERTAMINA extends the PSC from 2009 to 2029.

- AGX development includes an additional platform bridge linked to the original Anoa platform for gas sales to Singapore.

- PERTAMINA approved the P.O.D for Phase I Development of the Oseil Field on 5 January.

- Seram Non Bula Area PSC Extension was signed on 22 May.

- EPIC and O&M Contract for the Oseil Phase 1 Development was awarded to a consortium of PT. Istana Karang Laut (IKL) and Daewoo Corporation.

- Simpson oil field discovery (Harriet block).

- Linda gas-condensate field discovery (Harriet block).

 2001

- South Plato and Gibson oil field discoveries (Harriet block).

- Joined with Premier to form PKP (Premier - KUFPEC Pakistan)

- Joined Oil Search in Block 15,Yemen

- Gas production commenced from Zanzama.

- First gas sales to Sembgas.

- Facilities included a gas-processing platform AGX and a 640km 28-inch pipeline to Singapore. Conoco-Phillips and Star Energy are also exporting gas via this pipeline, which is operated by ConcoPhillips on behalf of WNTS partners.

- KUFPEC net production includes 4.3 BCFG.

- Preparation and commencement for Regional Geology and Gravity Surveys.

- Preparation and commencement of Oseil 3D Seismic Survey.

 2002

- Interpretation of regional 2D seismic reveals multiple structures in the Area IV portion of the block. Kuda Nil-1 is spudded on 18 December.

- KUFPEC share of total NSBA production includes 2.35 MMBOE.

- Completed Regional Gravity and Geological Surveys.

- Completed the Oseil 3D Seismic Survey.

- KUFPEC drilled Lola Kecil-1 ST1/ST2. The well was plugged and abandoned at a TD of 6,000ft.

- Oseil-2 horizontal sidetrack was successfully drilled.

- December 2002, first crude oil production from Oseil Field.

- Acquired interests in offshore exploration blocks WA-191-P and WA-8-L.

- Additional ‘String-of-pearls’ oil field discoveries and developments (Double Island, Victoria, Pedirka, Little Sandy, Hoover) (Harriet block).

- Burrup Fertilisers Gas Sales Agreement signed (Harriet block).

- Mutineer oil field successfully appraised (WA-191-P).

- Exeter oil field discovery (WA-191-P).

- Farmed in to Block 406b onshore Algeria

- Egypt, Ras Kanayes gas and condensate discovery brought onstream.  

2003

2004

2005

2006

- Malaysian regulatory authorities grant an Area Development Plan and Gas holding Agreement for the Belud South discovery.  The area is designated 7T-11.

- Cendor field commences production in September 2006.  By December production reaches 20,000 BOPD.

- KUFPEC completes its farm-out of the Seram (Non-Bula) PSC to CITIC.  KUFPEC retains a 46.5% participating interest in the PSC.

- KUFPEC joins JAPEX and Premier Oil as a co-venturer in the Buton PSC, southwest Sulawesi, Indonesia.

- Discovery of oil in Amulet-1 followed by two successful delineations wells in WA-8-L, Northwest offshore Australia.

- Two oil discoveries in the Zephyrus-1 and West Cycad-1 within the Harriet Joint Venture, Northwest offshore Australia.

- Two successful development wells within Mutineer-Exeter Field going on initial combined production rate of 28,600 BOPD, Northwest offshore Australia.

- Start of gas production from the Harriet JV to the new Burrup Fertilizer Plant in Northwest Australia.

- KUFPEC joins JAPEX in signing farm-in agreement to explore in SC-46, offshore central Philippines.

- KUFPEC joins Shell and South China Resources in signing farm-in agreement to explore in SC-60, offshore west-central Philippines.

- In Yemen, oil production commenced from the Jathma oil discovery in Block 10.

- Plans were approved to fully develop the Basement oil reservoir at the Kharir field in Yemen Block 10. Twelve new basement development wells were completed and a new record flowrate for a basement well at over 8400 bopd was recorded.

- Oil production from Block 10 in Yemen continued to scale new heights with a new daily record of over 50,000 bopd being achieved and a cumulative production milestone of 75 million bbls of oil was reached.

- In Pakistan, the Zamzama field expansion project was approved by the Government, this will increase capacity by 150 mmscfd to 450 mmscfd.

- Agreement was reached to increase gas sales capacity at the Bhit field in Pakistan to 300 mmscfd in 2007.

- A Gas Sales Agreement was signed enabling development of the Zarghun South gas field in Baluchistan to proceed.

- The Qadirpur gasfield Capacity Enhancement project was approved, this will enable production to increase from 500 mmscfd to 600 mmscfd.

1.       On March 13, 2007, granted the General Authority for Petroleum in Egypt EGPC privilege Geisum fields and west of long WistTawaila & Geisum to KUFPEC and PICO. The Egyptian parliament has ratified the treaty in June 2007 and the share of KUFPEC in the project by 40%.

2.       KUFPEC has a stake in the project company ConocoPhillips (Pangkah) located in the East Java Sea, Indonesia, and amounting to 25%.

3.       Possession of a new sector exploratory Block CI-102, located in the Republic of Ivory Coast's share participation of 27%.

4.       Started in the early production from a field located in the West Sitra Egypt in mid-2007.

5.       The KUFPEC separate from company Premier Oil (KPH: KUFPEC Pakistan Holdings) - and the Department of exploratory work independently.

6.       Opened a new office in Cairo interested in the follow-up operations of the company operating in Egypt as well as to strengthen the company's presence near the new investment opportunities.

7.       Signed a memorandum of understanding in principle for the second for the sale of gas from the Natuna field in Indonesia to Singapore (Heads of Agreements).

1.       Acquisition of new exploration 3 sectors: 

· Block Marine IX located in the Democratic Republic of Congo, 27%.
· Block VIC-P59 located in Australia, 35%.
· Block WA-427P located in Australia, 35%.

2.       In the draft WA-356-P in Australia, continued drilling and evaluation in the areas of Brinolo and Guillemard. Have been evaluated gas wells and Zolemar Brolemar -1 -1 Guillemard SE-1 and Guillemard NW-1 and -1 Grange successfully. And the examination of potential development options and strategic marketing of gas to gas discoveries in the fields Brinolo and Guillemard.

3.       The company achieved in the draft Hindor (Cendor) Malaysia a great success, where he was to recover all disbursements and reimbursable within two years from the date of production began. Also recorded the highest rates of field production until September 8200 by a total of 10 million barrels of oil equivalent.

4.       Company has entered into a contract in the field of Yashig in China to increase production from 216 million cubic feet per day (37 million barrels of oil equivalent per day) to 339 million cubic feet per day (58 million barrels of oil equivalent per day) as of September 2008.

5.       Pakistan in the field Qderebor company has a contract for the sale of extra quantity of gas amounted to 75 million cubic feet per day (12 million barrels of oil equivalent per day).

6.       In April 2008, the company concluded three contracts for the sale of gas in the sector project A Natuna in Indonesia in order to export natural gas to Singapore and the local market in Indonesia, this will transport natural gas through a pipeline stretching from the Sea sector of the Natuna A in Indonesia to begin the process of production as from 2011.

7.       Was achieved first production from an oil field Pangkah in June 2008 and the rate of production with the end of the year to 6.000 barrels of oil, and the rate of gas to 15000 barrels of oil equivalent and managed KUFPEC from the sale of 27.7 billion cubic feet of gas.

8.       In April 2008 has been a new oil field discovered Nief Utara on the island of Seram in Indonesia.

1.       Acquisition of new sectors Acetkchavin Block 19 & 20 located in the Socialist Republic of Vietnam, the participation share of 40%, and work is underway to conclude a new contract for the acquisition of another sector exploration (Block 51) in Vietnam.

2.       After the discovery of large quantities of liquefied natural gas in the fields of Guillemard and Brunello (about 2.1 trillion cubic feet) and a study of alternatives and offers available to develop the WA-356-P in Australia and related to the field of liquefied natural gas LNG-liquefied natural gas, has KUFPEC with Apache Australian Company Chevron signed an exclusive agreement to supply liquefied natural gas discovered with the construction of facilities development for liquefied natural gas (Wheatstone Project) and this becomes partners has been one center of liquefied natural gas in the north of Western Australia.

        It is expected that the consideration of the evolutionary costs of facilities (FEED Study) in 2011 and then partners will adopt a final investment decision to begin work on the implementation of the project. It is worth noting that the share of Chevron in the LNG facilities by 75%, while the share of KUFPEC Apache and 25%. The other hand, this is the first project of its kind in the history of KUFPEC, Kuwait, and will KUFPEC production for 15 years at a steady rate and stable.

3.       Has launched production facilities of LNG (LPG-liquefied petroleum gas in the field of Pangkah Indonesia June 15, 2009 in the presence of the Indonesian energy minister, and this is the first step to KUFPEC and unique. In the production and sale of liquefied petroleum gas LPG).

4.       Starting early primary production of the draft North Bardawil in Egypt in August 23, 2009.

5.       Company in the final stages of ratification of the second phase of the development plan for the draft Hindor (Cendor) with government agencies in Malaysia.

6.       Modify the contract of sale of gas field in Pakistan Qderebor at better prices than previously concluded, and approved by the government Pakistan.

7.       The continued success of exploratory drilling operations in the field of WA-356P through two new wells Balnaves 1 & 2.

1.       KPC approved the Upstream 2030 Strategic Plan on January (Approval of KPC-SPC is still pending).

2.       KUFPEC was certified for ISO 27001-2005 and certified for ISO 9001-2008 On 24th November 2010, and OHSAS 18001:2007 on 30th November

3.       KUFPEC will reach its 2030 strategic goals for production in December 2010 by achieving average production rate of 80,000 boepd with closing 2P reserves basis of 230 mmboe.  

4.       KUFPEC after tax net profit will reach US$195 million by December 2010 exceeding the budget record of US$71MM  by 2.7 times and 80% higher than 2009 net profit (US$108.3 million)

5.       KUFPEC drilled a total of 15 exploration wells resulted in 55% success ratio (4 discoveries in Australia-WA356P block and 1 in Indonesia-Seram block)

6.       KUFPEC successfully completed the drilling of 30 development wells.

7.       On 17th December 2010, KUFPEC acquired one company with 2 new producing fields and 1 exploration block. The deal allows the company to add around 16,000 boepd and 37 mmboe 2P reserves. The project details cannot be fully disclosed in the external media prior the government approval as part of the confidentiality agreement.  

8.      Australia: Wheatstone LNG project: The development of Julimar discovery is undergoing through the Wheatstone LNG assessment with Chevron and Apache which is subject to Final Investment Decision by August 2011.  A major milestone of the project progression has been achieved on 9th December 2010 by signing the side letter agreement between KUFPEC and Apache tabulating the favorable terms for the FID (Final investment decision) 

10.   As part of Portfolio Management implementation, WA-192-P (Australia) was relinquished on January 2010 and Block-17 (Syria) on March 2010

11.   Pakistan: Qadirpur: The government of Pakistan (GoP) has approved 5 years extension of Qadirpur production and development lease up to 2017

12.   Yemen: East Shabwa-Block-10: The JVP’s approved the construction of Kharir Power Plant project after granting cost recovery acceleration from the Yemeni’s Government

13.   China: Yacheng: Complete development drilling campaign in Yacheng  (China) for 4 wells and the contract for LPG plan was awarded

14.   Indonesia: Pangkah: BPMIGAS has agreed to support a higher gas price for Pangkah project (in Indonesia) of around $5.00/bbtu (presently $2.38/bbtu). The proposed price is currently under ongoing negotiations with the buyer

15.   Vietnam: Block-51: effective meetings between KPI and KUFPEC Senior MGMT had resulted on Vietnam-Block 51 exploration acquisition.  The PSC signing ceremony was held on 12th May 2010, and the commitment seismic acquisition program was successfully completed ahead of the planned schedule.

16.   Malaysia: Cendor: The development plan (Phase II) for Cendor project in Malaysia is approved by the government (Petronas Management Unit) on 15th November 2010.

17.   Building on KUFPEC existing operations in Indonesia, KPI and KUFPEC had jointly approached PERTAMINA (Government of Indonesia)  and succeeded on signing an MOU (memorandum of understanding) terms  for future synergy between the three parties 

18.   As part of the 2030 strategy implementation, the upstream governance entities efforts resulted on the following achievements:

· Initiated the sector peer review concept among the upstream subsidiaries which has been set as a new process starting from May 2010.
· Capitalize on KOC technical service agreement for the benefit of KUFPEC growing business.
· Initiated sharing knowledge forums among the upstream subsidiaries.

     · Implement best practice on IT\HR activities with the following achievements:

-    Join KOC in different IT functions: Help desk \ DMIS contract to  reduce total overhead cost in the corporate level

-    On job training by seconding 2 technical employee to KGOC

-    Form a team within upstream to monitor career development plan for the UD\s 

19.   KUFPEC hosted the Middle East Upstream Forum on 7th February 2010 with participation of upstream K-companies

20.   The implementation of “National Junior Program” was concluded on April 2010 by final project presentation demonstrating technical knowledge gain to a committee of KUFPEC Senior Management, Regional Managers and Schlumberger experts

21.   KUFPEC 2010 Town Hall session and Annual meeting was held on 20th of May 2010 for KUFPEC employee  and area office participation

22.   Launch of new KUFPEC Web Site on 20th of May 2010.

1. By end of December 2011, KUFPEC expect to achieve a net profit of U$241mm exceeding 2010 profit by 69%, while Oil & Gas revenues anticipated to be 1,191.6mm  exceeding previous year record by 9%.

2. The expected reserves additions in KUFPEC portfolio of 150 mmboe  mainly from 2 projects in Australia (WA-356P and WA-191P). The reserve replacement ratio will be 2.7%, almost double than previous year (2010). By end of December 2011, the yearend reserves expect to reach 355 mmboe meeting our strategic goals and objectives.

3. Australia – WA-356P:

       ·  Wheatstone LNG Project: The WA-356-P Julimar/Brunello
          Development and Wheatstone LNG project FID’s were signed on 26
          September 2011. The Wheatstone LNG project  is the largest project
          ever entered by KUFPEC and considered as a world class project that
          will be led by Chevron. The project will add 145 million boe to 
          KUFPEC’s reserves in 2011 and 19,000 boepd of production during 
          plateau period. The FID signing ceremony for the Wheatstone Project
          took place in Perth.

       ·  Balnaves Oil development: In August of 2011, Board approval was
          given for KUFPEC to participate in the Balnaves oil development in 
          WA-356-P, Western Australia. KUFPEC holds a 35% Participating
          Interest and Apache is the operator of the Permit and holds the
          remaining 65% Interest. This development project will recover (Gross)
          approximately 13.8 million barrels of oil (net to KUFPEC 4.8 million
          barrels) and cost US$ 167.3 million net to KUFPEC. First oil is
          planned for March 2014.

 
4. Australia – WA-191P: In May 2011, the Finucane South-1A exploration well was successfully drilled, encountering 18 meters of oil reservoir in the Angel Sandstone. This discovery and the adjacent Fletcher field have combined recoverable reserves of 13.3 million barrels of oil. FEED studies have been completed on the Fletcher/Finucane discoveries and a subsea, tie-back oil development to the Mutineer/Exeter FPSO was approved by KUFPEC Board on 8th September.

 
5. Indonesia – Natuna Sea Block A:

       ·  Anoa field:  In February 2011, the KUFPEC Board approved Anoa
          Phase 4 (Compression Project) that will extend plateau production
          and optimize gas sales to Singapore.

       ·  Gaja Baru field: The Gajah Baru Field 5-well Development Drilling
          program was completed in February 2011 ahead of schedule and
          under budget. By 3rd week Sept 2011, the Gajah Baru gasfield
          facilities were installed on schedule and ready for commissioning .
          First Gas sales to Singapore commenced on October 21st 2011,
          increasing forward production from the block by 40%.

       ·  Naga and Pelikan Fields: KUFPEC Board approved the Pelikan Field 
          Development. FEED studies commenced for the Naga & Pelikan Gas
          fields to achieve first gas production in 2013.

6. Indonesia – Seram:

       · Two new light oil discoveries were made in first half 2011 with
         exploration wells Oseil-Selatan-1 & Nief Utara-B1. Production testing
         is underway.

       · Production from the Oseil field was increased by 20% as a result of
         successful infill well drilling and production optimization.

7. Indonesia – Pangkah:

       · Successfully installed, commissioned and brought online additional 
         Phase II facilities (WHP-B, CPP & AUP) 3 months ahead of schedule.
         Drilled 8 development wells from WHP-B (Well Head Platform-B),
         which has increased gas production by 35% and oil production by
         300%. Negotiations to increase gas price expected to be concluded 
         by year end.

8. Malaysia – Cendor:

       · Steps have been taken to accelerate the West Desaru field
         development project in order to obtain first oil production a year
         early, by end 2012 instead of end 2013.

       · Commenced fabrication of Cendor Field Phase II facilities to start 
         Phase II production in 2013.

9. Malaysia – SB-312:

       · Made a commercial gas discovery with exploration well Menggatal-1
         which was drilled in Q1 2011.

10. Malaysia – 7T-11:

       · Completed FEED for the Belud gasfield development project with the 
         aim to submit the Field Development Plan before year end for first 
         gas in 2014.
               

11. Pakistan – Zamzama: Successful commissioning of FEC (Front End Compression) and the first gas achieved 13th July 2011. Expected sales gas
470 MMscfpd after full load

12. Pakistan- Qadirpur:

       · The DGPC (Director General Petroleum Council)  approved 5 years
         extension in the initial term up to 2017 which will assist in
         maintaining the production plateau from the fields  for another 5
         years.

       · Drilling completion for the extended reached well which was  tested
         at 32 MMscfpd. This will ultimately increase reserves and production
         rate.

13. Yemen- (East Shabwa \Block-10):  Efforts has been progressed to make necessary project registration formalities for Clean Development Mechanism (CDM) which will allow the JV partners to benefit from achieving compliance with the United Nations framework convention (UNFCC)  for green-house gas emission caps within the industrial countries. Upon the registration, KUFPEC will be able to share its CDM credit with KPC K-companies aspiring the technology transfer strategic objective and benefits. 

14. Egypt– Ras Kanayes:  Three wells were drilled in 2011 at which gas and condensate were encountered in the primary targets (RK-9, Duke and Prince-3X). Three wells (RK-9, RK-8 and Price-1X)were put on production in 2011. Two additional wells (Duke and Prince-3X) are planned to be tested by the end of the year. Also, a three year extension of the Lease (Oct 2011 – Oct 2014) was secured in May.

15. KPC Upstream Sector:

       · Continues collaboration with upstream and international downstream
         to increase synergy and leverage existing relations. 

       · Launched the “2030 Full Scale Implementation” program on 1st 
         June, 2011 with the support from PwC (PricewaterhouseCoopers)
         consultancy firm.   4 initiatives has kicked off (PMO, PMI, IPPM and
         Supply Chain Management & Procurement).

       · Upstream “PEER review” opportunity has been successfully
         implemented by the inauguration of  two PEER reviews in KOC,
         KUFPEC and KGOC to leverage the knowledge transfer and provide
         constructive mutual examination for major project performance and
         future plans and potential.
     

16. Successfully implemented Oracle Financials  by 1st  March 2011.

17. 3 Female Engineers from KUFPEC Successfully participate at the 15th International Conference for Women Engineers and Scientists (ICWES) in Australia during 19-22 July 2011.

18. Successful training implementation for 7 employees through attachment\secondment programs with  operators, JV’s partners, area offices and reputable  business firms to enhance their knowledge and technical expertise as part of career development plan.

19. As part of KUFPEC social responsibilities for community programs,  the company contributed in a donation campaign for Somalia and Pakistan and prompted advertisement in the Workers Voice Magazine.

Disclaimer: Reported Financial data and production figures are based on best estimates, and subject to changes according to the operator update and year-end financial closing.

Mr. Nizar M. Al-Adsani