Alkhorayef In Kuwait Pioneers of Water and Oil Production...

Issue (36) - 1429 - 2008Quarterly Issue of Alkhorayef Group of Companies

Alkhorayef In Kuwait

Pioneers of Water and Oil Production Sector

Saudi & Egyptian Ministers of Agriculture Pay Special Visit to Alkhorayef Group

Alkhorayef Sets A Model of Agricultural & Industrial Development in Saudi Arabia

Alkhorayef Participates in the General Assembly of the Arab Organization for Agricultural Development (AOAD)

Alkhorayef Around the World

More Than 5500 Employee to Serve Our Customers Around the World

مجموعة شركات الخريفAlkhorayef Group of Companies

www.alkhorayefhr.com - www.alkhorayef.com

1Issue (36) 1429 - 2008

Editorial

Twelve years ago, when Al Khorayef Commercial Company established its branch in Kuwait as an electrical submersible pump service company, and focused on making diversity and superiority its strategic choice and excellence deciding factor, senior leadership set the target of creating an exceptionally diverse oil-sector total-solution company. Within the framework of our vision of this strategy, we have always sought the formation of a greatly talented work team. Thus, we managed to recruit competent workers and employees that came from different backgrounds. Its Alkhorayef Commercial Co. for selling, maintenance and repair of oil extraction equipment.

With a quick overview of the past decade, we may recall our first US$ 8 Million water injection project done with KOC in the year 1996, followed by the US$58 Million contract we undertook with Joint Operation of KOC and Saudi Texaco for the installation, operation and maintenance of 450 ESP wells in 1997. In the year 2000, we moved on to northern Kuwait by winning a US$ 130 Million tender to supply, operate and maintain an ESP system . Through utilizing our strategic strength, we were able to win %100 of pilot water injection projects in Kuwait and succeeded to implement all, including the Middle East highest injection pressure ,(6200 psi), water application.

Our company also undertook three more projects to supply, construct, operate and maintain pilot plants in both water flooding application as well as an oil process and production application in Raudhatain, Sabriyah,Wara,and Marat Oil fields totaling U$ 30 Million, two of which are still running to date. Last January, Alkhorayef Company for Sales, Maintenance & Repair of Oil Production Equipment LLC was awarded by KOC a US$ 15 Million, (CHOP), Cold heavy oil production with Sand and process plant for the first time in the Middle East.

Our company presently focuses on building a distinguished workforce, offering high quality products and services to become the leaders and pioneers of oil and water production services in Kuwait through implementing work safety policies, cost-effective practices and continuous intensive training programs throughout. As a result, we were recognized by our main contract owners with certificates of appreciation, in acknowledgment of our positive contribution to their operation safety efforts. We are proudly winning the majority of all tenders we enter in Kuwait.

Al Khorayef Leadership in Kuwait

Faisal AyeshPresident of Alkhorayef

Commercial Co. for selling, maintenance and repair of oil

extraction equipmentKuwait Branch

Issue (36) 1429 - 20082

Abdullah Ibrahim Alkhorayef Sons Company

Riyadh 11411 P.O.Box 305Tel.: (+9661) 435 14 79Fax: (+9661) 435 88 52

Alkhorayef International Company


Reaching our customers throughout the world, providing comprehensive solution programs, and working with colleagues as partners.

To achieve our dreams of growth by entering new markets, providing high quality products and services, and taking opportunities resulting from the hard work of our employees who were carefully chosen and sent for training to play an effective role in technology transfer and environmental preservation.

Alkhorayef Core Values

Publisher A company of

Articles Published in Alkhorayef bulletin express only the writers’ view-points and the bulletin holds no responsibility for them.

• Growth • Technology transfer.• Protecting the environment. • Developing society.• Taking care of employees.

Alkhorayef Vision

Alkhorayef Mission

Chairman, Board of Directors

Abdulrahman Abdullah Alkhorayef

Editor-in-Chief

Saud Abdulaziz Alswailem

Editorial Supervisor

Saleh M. Alshamrani

Alkhorayef Group Company


Alkhorayef Petroleum Company

AlKhobar 31952 P.O.Box 30204Tel.: (+9663) 858 80 90Fax: (+9663) 857 85 69

Alkhorayef Lubricants Company

Jadah 21312 P.O.Box 11810Tel.: (+9662) 697 44 14Fax: (+9662) 697 38 27

Alkhorayef Industries Company


Alkhorayef Operation & Maintenance Company


Alkhorayef Agricultural Projects Company


Saudi Parts CenterCompany


Alnakhil Paper Industries Company


Trans Orient Modern Machinery Company


Saudi Installment House Company


Alkhorayef Management Services


All correspondence should be sent to the Editor-in-Chief, G.M., and Human Resources DepartmentP.O.Box 305, Riyadh 11411 Tel: 01/4955452Fax: 01/4950261 - E-mail: [email protected].

P.O.Box 65701, Riyadh 11566 Kingdom of Saudi Arabia Tel: 00966-1-212-8001 Ext.: 1835 Fax: 1085 [email protected]

Issue (36) 1429 - 2008Quarterly Bulletin of Alkhorayef Group of Companies

3Issue (36) 1429 - 2008

News

The Saudi and Egyptian Ministers of Agriculture expressed their admiration of Alkhorayef Group Companies. Mr. Amin Abaza, Egyptian Minister, said:” I am proud of the technical development I witnessed at Alkhorayef Group Companies and I wish all Arab countries could benefit from the expertise, and technical development the Group achieved in the field of agriculture.

The Egyptian Minister also pointed out that his visit reflects the depth of interest the Egyptian Ministry of Agriculture takes in consolidating its partnership with the Saudi Private Sector. This partnership greatly participates in the development and growth of the agricultural sector.

Dr. Fahd Balghoneim, the Saudi Minister of Agriculture, described Alkhorayef Group as a typical model of the agricultural and industrial development in Saudi Arabia, and asserted his pride and pleasure for the existence of Alkhorayef as one of the pioneer national companies.

Dr. Balghoneim stated that all the achievements he witnessed during his visit make only one aspect of the activities of Alkhorayef Group Companies, which is definitely one of the pillars of the agricultural and industrial sectors in the Kingdom.

The Saudi and Egyptian Ministers paid this special visit to the Group, where they were received by Shaikh Abdulrahman Alkhorayef, and Shaikh Mohammed Alkhorayef, who briefed the visitors of the history of the Group. Shaikh Mohammed also asserted that Alkhorayef Group has worked for more than fifty years during which it built the solid foundations of various comprehensive solutions that gained the trust of the agricultural, industrial, oils, petroleum and paper industries sectors. It was not only a highly recognized supplier but also an after-sale quality-service provider. It started as an ambitious company confident in Allah’s power to go through different stages of development until it reached its current status. It realized such rank through its employees that managed to gain the world’s trust in the products of the group and its agencies that are globally recognized as dealers in the various fields the Group dominates.

Shaikh Abdulrahman Alkhorayef expressed his gratitude to the Egyptian and Saudi Ministers, pointing out that Alkhorayef Group organized this visit, which received great attention for its importance to the expansion of the investments and activities of the Group.

Saudi & Egyptian Ministers of Agriculture Pay Special Visit to Alkhorayef Group

Alkhorayef Sets A Model of Agricultural & Industrial Development in Saudi Arabia

Issue (36) 1429 - 20084

News

Since Alkhorayef Petroleum Company decided to establish its branch in Egypt, we have taken major steps towards the accomplishment of our training facility in Alexandria. As early as the first quarter of the year 2007, we applied to the local authorities for the possession of a 5000 Sq. meter land at Al Amerya Free Zone in the Egyptian city.

During the same year, we managed to get the initial approval of the Egyptian Investment Authority concerning the activities provided by the training center. These activities comprised

research and testing, offering consultancy and training services, parts and consumable sales, parts and equipment manufacturing as well as the repair, rent and exchange of oil and water production equipment. The registration of the branch now known as Alkhorayef Petroleum Free Zone – Egypt Branch was finalized too.

In 2008, we started the design work, the process of selecting the contractor and the construction phase. We plan to order the equipment and tooling as well as the commission of the training center and service facility.

Designing KOC Training Center in Alexandria Initiated

Alkhorayef Participates

in the General Assembly of the

Arab Organization for Agricultural

Development (AOAD)

Under the auspices of His Majesty King Abdullah bin Abdul Aziz Al Saud, Custodian of the Two Holy Mosques, the 30th Meeting of the Arab Organization for Agricultural Development (AOAD) was held at the InterContinental Hotel in Riyadh from 20 to 24 Rabie II, 1429.

Al Khorayef Industries Company, as represented by Al Khorayef Group Chairman, Shaikh Abdularahman Abdullah Al-Khorayef, participated in the accompanying exhibition showing the latest agricultural technologies, which asserts the significance of the Group's 50-year experience in that field. Throughout these years, the Group developed its solid basis as a worldwide well-reputed company offering comprehensive quality solutions.

5Issue (36) 1429 - 2008

The stall of Alkhorayef Industries Company official agent The Green Flag, at the Tripoli International Fair held from April 2 to April 12, 2008, gained considerable attention by agricultural bodies and figures. The agent showed advanced irrigation systems, with a special focus on the latest Pierce Products as Alkhorayef Industries works in collaboration with the U.S. Pierce Corporation in order to promote the Acre Master & CP600 systems in global markets. During the fair, many contracts, deals and bookings of the Pierce HYPERLINK "http://en.wikipedia.org/wiki/Irrigation" \l "Center_pivot_irrigation" Center pivot irrigation and CP600 systems were finalized.

Alkhorayef Industries Agent "The Green Flag" Participates in The Tripoli International Fair

Alkhorayef Group Council member & CEO Shaikh Saad bin Abdallah Alkhorayef, issued a resolution forming a special committee to comply by the corporate governance regulations announced by the Saudi Capital Market Authority. This step comes in preparation for the preliminary issuance of Alkhorayef Group shares in the Capital Market, which requires founding an effective internal monitor system for the Group and its various units. The monitor system should comply with the corporate governance regulations of the Saudi CMA.

The committee is headed by Mr. Saud Al Swailem, with the membership of Mr. Fareed Allini, Mr. Ammar Alzbeidi and Mr. Omar Osman.

The selection of the committee members was based on the type of job they assume and their previous experiences and availability upon request.

The committee follows up the requirements of the corporate governance system, finalizes the necessary documentation – except for, the Financial System Guide currently being prepared, and guarantees the compliance by these requirements as well as applying them.

Applying Corporate Governance of CMA at Alkhorayef Group

Saad AlkhorayefCEO

Alkhorayef Group

Issue (36) 1429 - 20086

News

Under the supervision of Eng. Fayez Khlayfat, GM of Al Khorayef Industries, a farewell gathering was organized to honor our colleague Mohammed Yassin Serajaadin. All personnel of the company's factories attended the gathering held on 3.4.2008.

Serajaadin , who is Indian, joined Al Khorayef Industries as a secretary in 1992. Since then, he showed loyalty, punctuality and set an example of excellent manners.

A Farewell Gathering for our colleague Serajaadin

Workshop for Alkhorayef Group Financial Managers

In cooperation with Samba Financial & Banking Studies Center, Al Khorayef Group organized a workshop for its financial managers at the Marriott Hotel in Riyadh. The workshop realized its designed goals through issuing key recommendations pertaining to financial management. Certificates of recognition and appreciation were awarded to the participants at the closing session of the workshop.

President of Volvo Penta and After Market Director Thanks Alkhorayef Industries (MSD) for Fantastic Sales in 2007

Mr Giorgio Paris (President Volvo Penta Region International), Mr. Claes Gerlach (Director After Market Sales and

Customer support), Mr Peter Karlsson (Marketing & Sales Manager) and Hans Elisson (Area Manager Middle East) paid a visit to Al Khorayef Industries MSD division. They were impressed by the different divisions of the company and spheres of activity. Our valued guests held meeting with Sheikh Saad Abdullah Al Khorayef (CEO). Mr. Saad Al Sammary (GM of MSD), Mr. Atif Abdul Rab, Mr Fahad Saif, Mr. Sulaiman Mayouf and other senior managers were also present in this meeting. Sheikh Saad handed a memorial trophy to Claus Gerlach on behalf of the MSD Aftersales. The guests were given brief introduction to the various activities of the Khorayef group. On behalf of VP, the President and Aftermarket Director expressed thanks and appreciation for the excellent sales results achieved in 2007 and first half of 2008. They were impressed with the facilities and organizational structure of Khorayef Group and hoped that we will continue to deliver excellent results in the years to come.

7Issue (36) 1429 - 2008

Eng. Mohammad Abdallah Alkhorayef issued a resolution to declare the unification of the international Irrigation business run by Alkhorayef Group under one sector. The resolution also announced Eng. Fayez Khlayfat as president of this newly established sector while keeping his current position as GM of Alkhorayef Industries Co. We all Wish Eng. Khlayfat all success in his new mission.

Khlayfat New President of the International Business Sector of Alkhorayef Group

As President & SVP of Alkhorayef Industries, Eng. M o h a m m e d A b d u l l a h Alkhorayef issued a resolution appointing Mr. Bernard Nicholas Branz as GM of Al Khorayef Group branch in Egypt, effective May 2008. Best wishes for Mr. Branz in his new assignment.

Branz As General Manager of Alkhorayef Group Branch In Egypt

As chairman of Alkhorayef Pertoleum Company (APC), Shaikh Saad bin Abdallah Alkhorayef issued a resolution appointing Dr. Woon Lee as Manager of Mechanical Engineering at the company.

Best wishes for Dr. Woon in his new assignment.

Dr. Woon Lee New Mechanical Engineering Manager

Alkhorayef Participates in Marine Safety Week

Out of its deep faith in the importance of spreading marine safety awareness and the need to provide guidance in that field, the Marine sector of Alkhorayef Industries participated in the activities of the Marine Safety week held in collaboration with the Jizan Coast Guard.

On the occasion, the company was awarded a trophy handed to Mr. Safwan Hawari, GM - Jizan Branch.

Ibrahim Mohammad Al Tmaihi, Administration Affairs personnel/Al Khorayef Operations & Maintenance Co., obtained a well-deserved recognition and appreciation certificate for finalizing the pending affairs with the GPSSA - General Pensions and Social Security Authority as well as for his superb performance at work. His Excellency Eng. Mohammed Abdullah Alkhorayef, Chairman of the company, awarded Ibrahim his certificate.

Certificate of Recognition

Thanks and Appreciation

Saud Fahd Al Qahtani, Al Dawadmi Branch Manager, received a letter of thanks and appreciation from the Al Dwadmi Governorate – Water Projects Administration, for his efforts in running its projects within the governorate.

Issue (36) 1429 - 20088

The Surface equipment of the electrical submersible pump (ESP) is one of the vital parts of the system that allows the operation and control of the ESP. Surface equipment also provides the required communication access to monitor and control the ESP from the remote production control rooms.

Considering the importance of surface equipment as a major component of ESP systems since they form around 50% of the total system equipment value and cost, our company established a special unit that takes the full responsibility of engineering and supervising the execution stage from procurement down to installation and commissioning at site. The Surface Equipment unit at Saudi Operation relied on forming a long term local and international supplier partnership strategy to raise our products’ quality to the highest level in Oil Industry. This goal was achieved by closely cooperating with our suppliers during the whole process starting with engineering and manufacturing, to end with the final stage of product QA testing. Our Surface Equipment Unit aims to extend its cooperation with the suppliers to study the possibility of adding more value to its product. By manufacturing more components of the surface equipment, we could increase the competitive edge of our ESP produced by Al-Khorayef Petroleum.

Through its Saudi and multi-national expertise and its cooperation with the research and engineering departments of major local and international oil producing companies, Al-Khorayef Petroleum surface equipment team managed to provide comprehensive control/monitoring solutions. Such solutions allow the oil industry worldwide to choose, from a wide range of standard high quality options, the surface equipment appropriate for each operation and its basic requirements. In addition, our technology allows oil-producing companies to vary their production rates under tough working conditions using the latest electronic digital equipment without affecting the power system quality and stability.

The control solutions provided by Al-Khorayef Petroleum Company takes into account the flexibility of the ESP operation throughout any oil well lifetime production and during its depletion stage, providing economical solutions to reduce the investment value through the whole operation cycle of the well.

The Surface Equipment Unit, as any other unit of Alkhorayef Petroleum, operates under the policy of the company and group to provide high quality services for our customers. We achieve our goal by selecting and developing our employees in order to become an active element in the growth of our economy and the development of our society.

Surface Equipment from Development to commissioning

Article

Samer A. Khaled

9Issue (36) 1429 - 2008

Prior to joining Alkhorayef Petroleum, I worked as the CNC department chief at one of Egypt’s pioneer factories working in the field of Crystal manufacture (Asfour Crystal Company) since 1961. Among my responsibilities was supervising more than 50 CNC machines including 3 and 5 axis milling machines, turning and wire cutting for production of precision crystal components for the production of precision crystal components.

I managed to assume such responsibilities efficiently as I graduated with a BSc degree in Mechanical Engineering and acquired several practical and specialized qualifications throughout my previous working experience.

In July 2007, I joined the working staff of the WEPCO factory of Alkhorayef Petroleum which is based at the second industrial city of Dammam as CNC supervisor and my expertise gained at Asfour Factory were instantly transferable. Instead of cutting metal molds I am now cutting sand molds and wooden patterns to make castings using a state of the art 5 axis milling machine. The material maybe different but the basic skills are similar.

Working for WEPCO over such a short period of time significantly promoted and developed my skills in pattern manufacture and foundry processing as well as the ability to handle the rotating equipment parts. Eventually, such progress will be enhanced and taken to higher levels.

At WEPCO, every day I spend is different and presents new and exciting challenges to overcome difficulties and develop skills and expertise. Among these challenges is learning 3D modeling skills and reverse engineering to support the rest of the engineering department roles to work comprehensively and achieve the ultimate goals of our factory.

With my extensive experience in CNC machining combined with

the great skills and experiences of other members of the WEPCO team, there is no doubt we are prepared to manufacture what ever comes our way now and in the future.

At the personal level, this is the first time my family and I have ever lived such a period of time outside my country and at the start I honestly found the transition difficult. However with the support of the team at WEPCO and other people within Alkhorayef Petroleum, we now find life in Saudi Arabia very enjoyable.

My Personal Experience At Alkhorayef Western Engineered Pumps & ComponentsWEPCO - Dammam

Article

Khalid Tantawy

Issue (36) 1429 - 200810

For the Past Twelve Years, Al Khorayef Commercial Company (KCC) Realized Multiple Business Achievements, This project ranks in the highest magnitude projects in all Alkhorayef Petroleum operation performed in Kuwait during the last 7 years. The project was bid for and subsequently awarded to Alkhorayef in the year 2000. Today’s value of this contract exceeds US$150 Million.

Alkhorayef started and maintained this project relying on international suppliers as well as its own pump repair and manufacturing facilities in the Kingdom of Saudi Arabia. The project consists of multiple supply, operation and maintenance components such as electrical submersible pumping systems including all related accessories, portable power generation, chemical injection skids, horizontal injection pumping systems including all related auxiliaries, PCP systems and variable speed drives.

Alkhorayef – Water Flood Pilot Plant Projects In Kuwait.

In Kuwait, Alkhorayef operates and maintains two

Alkhorayef Commercial Co. for selling, maintenance and repair of oil extraction equipment Kuwait Branch realized various achievements, which started with its US$ 8 Million Water Injection Project done for the Kuwait Oil Company (KOC) in 1996. In the year 2000, the company won a US$ 130 Million tender to supply, operate and maintain an ESP system.

Moreover, through utilizing our strategic strength, we were able to win %100 of pilot water injection projects in Kuwait.

Our company currently focuses on building a distinguished workforce, offering high quality products and services to become the leaders and pioneers of oil and water production services in Kuwait.

Alkhorayef In Kuwait

Talented Work Teams and Employees form Different Backgrounds

Pioneers of Water and Oil Production Sector

The Issue Case

Eng. Adel Al HayjanaEng. Khaled Al Ezzani

11Issue (36) 1429 - 2008

Undertaking Pilot Water Injection Projects Under the Highest Injection Pressure in the Middle East.

Implementing Work Safety policies, Cost-Effective Practices and Continuous Intensive Training Programs.

water flood pilot plants (WFPP), which were constructed and commissioned under turnkey projects for the Kuwait Oil Company. These two plants are known as the Marrat WFPP and Wara WFPP in East Kuwait.

Marrat WFPPAs the Marrat Reservoir is an over-pressured carbonate

reservoir deposited during the Jurassic period, KOC has contracted Alkhorayef to construct, commission, operate and maintain a water injection pilot to sustain reservoir pressure to prevent asphaltene deposition damage to the reservoir.

According to Khalid Al Ezzani, Project Manager of the Marrat WFPP, the project has the capability to inject up to 10,000 BWPD at a maximum surface pressure of 6200 psi to overcome the current high reservoir pressure. This task was very challenging for both Alkhorayef and KOC as the industry has never attempted to inject water in an over-pressured reservoir.

The pilot plant is located nearby the injection well to reduce the length of the ultra high pressure line (6200 psi) and minimize operational risk. The water source well is equipped with an ESP

Issue (36) 1429 - 200812

The Issue Case

and a variable speed drive unit capable to lifting between 2000 and 10000 BWPD at 300 psi.

The Marrat WFPP must be operated by our company for the two complete years.

Marrat WFPP Personnel CompetencyPersonnel working on the Marrat WFPP are carefully selected

to meet the performance standards required (experience &

commitment) to ensure success of pilot operations. Additionally they have undergone the required training by knowledgeable operational personnel. All Marrat WFPP operating personnel became familiar with WFPP operations such as injection facilities under normal conditions and emergency shutdowns, sample collection and proper coding, as well as operation monitoring, data collection and storage in a database. They also managed to operate the integrated surveillance program for the WFPP . The operators also became experts in working with high-pressure equipment and safety around high pressure situations.

With the help of our professional administration and talented workforce, we managed to finalize the Marrat WFPP on 22 October 2007, within budget and on time.

The Wara WFPPThe project aims at studying the performance

of the Wara Reservoir under water flood. Yet, it also targets to collect and record the resulting data consistently and accurately.

The Plant was successfully commissioned in December, 2005 with one source well, a water treatment and storage facility, one injection and a number of producing wells.

Throughout its two years of operation, the project achieved an incomparable 100% safety record and witnessed no equipment mal-functioning which gained the respect of our client the Kuwait Oil Company.

Alkhorayef Cutting-Edge CHOPS Oil Recovery

Due to today’s robust commodity prices, popularity is surging for all sorts of oil-recovery projects. That is why oil-recovery technologies are enjoying a fresh look from many operators.

While much attention currently swirls around thermal projects in Canada’s heavy oil sands, and miscible CO2 floods in various mature U.S. oil fields, as well as other oil-recovery technologies.

Alkhorayef Company for Sales, Maintenance & Repair of Oil Production Equipment LLC have just been given the opportunity to produce Heavy oil for Kuwait Oil Company by implementing the Canadian successfully proven recovery methodology of Cold Heavy Oil Production With Sand ,(CHOPS), for the first time in the middle east.

Our company says Issam Elhouni – Project Manager, was awarded a US$ 15 Million construction, operation and maintenance of Lower Fars Heavy Oil project in north Kuwait utilizing progressive Cavity Pumps as they have proven their effectiveness in such application.

Alkhorayef is The Only ESP Contractor for Joint Operations At Wafra.

Alkhorayef Cutting-Edge CHOPS Oil Recovery Project Unprecedented in The Middle East

13Issue (36) 1429 - 2008

The Operation Departments at AL Khorayef Petroleum Company supervise the inspection, commissioning and installation of submersible pumps. The departments’ mission also extends to comprise the operation, repair and periodical maintenance of ESPs carried out at the workshops set up on site.

One of the major responsibilities assigned to the Operation crews is putting the strategic plans of AP into action. Through its highly trained engineers and work groups, the Operations crew carries out such plans effectively to help the realization of the company’s ultimate goals.

Since the operation crews represent the company as they provide their services directly to customers, Al Khorayef Petroleum decided to support this sector though organizing intensive training programs and the careful selection of its employees as well. Such measures would definitely boost the company’s quality performance and reputation in the oil sector.

Within less than two decades, the company has given much attention to holding training courses targeting its personnel and carefully selecting the members of its staff. These efforts resulted in the transformation of Al Khorayef Petroleum from a starting company working on minor water pump projects, to one of the globally recognized companies working in the oil sector. Therefore, the company was awarded several major oil pumps projects worldwide.

Out of its deep faith in the importance of providing a healthy working environment to reflect positively on the quality of production and the proficiency of its employees, the company established separate sites and workstations for each project. It provided these sites with standard workshops equipped with safety gear, offices, housing facilities to encompass the whole crew. The sites also include gyms, restaurants, and all life supplies to ensure a healthy environment and foster a positive working atmosphere.

The company being awarded contracts at the national and international levels stands as clear proof that the determination of its administration, its accurate planning, and executive management of operations is the key for its development which would ultimately lead to the leadership of oil production locally and worldwide.

Field Operations at Alkhorayef

Abul Aziz Al Qahtani

Article

Issue (36) 1429 - 200814

JO (Joint Operations) is a company operating in the neutral zone between Saudi Arabia and Kuwait in an area called Wafra. The Company is 50/50 between KGOC (Kuwait Gulf Oil Company) and SAC (Saudi Arabian Chevron). They have a number of fields that are divided into two major areas: Wafra Main Area (Portion A) and South Umm Gudair (SUG) (Portion B). The total number of wells to date in Wafra exceeds 440 ESP wells. JO has also beam pump wells and a few PCP wells which are outside the ACC contract.

The original tender in September 2004 was to convert overhead lines in Portion A (8 lines) from 60Hz JO power to 50Hz Ministry of Electricity (MOE) power as the wells had previously been operating with generator power. This was revised to 6 lines prior to the contract award in 2005 and two lines were left to be converted at a later date with the successful bidder for the 6 lines.

The Contract commenced in October 2005 with duration of 5 years with a possible 6 month extension. The Contract is divided into two portions:

Portion A which is Main Area fields: Ratawi, East Wafra, South Fawaris, Wara, Eocene, Maestrictian, and Water Wells. Number of wells is near 300 ESPs.

Portion B which is SUG, Humma, and South Fawaris. Number of wells is around 100. Portion B become part of the APC Contract on October 17th, 2007.

In order to perform the conversion, JO purchased 60 variable speed drives (VSD) from ACC as part of the contract, 60 step up transformers, and 190 step down transformers rated for 50/60 Hz to be used both with the VSD skid and with switchboards already in the field. The first stage of the contract was to construct VSD skids and then install these skids on the first OHL (Line 5B) and maintain the operation of the well at 60 Hz. This commenced October 15th, 2005 and was completed before December 31st, 2005. Under the Contract this was called the Initial Installation Period.

On January 1, 2006, a dedicated rig to the MOE Conversion Project commenced pulling the 60Hz downhole equipment (DHE) from the wells on Overhead Highline (OHL) to be replaced with 50Hz DHE. Once that overhead line was completed, the VSD skids were relocated to wells on another line still on 60Hz power. When all wells on an specific OHL were operating on VSDs the power was switched to MOE power and downhole equipment (DHE) is pulled and replaced with 50Hz DHE. This continued until all 261 wells in the Main Area were converted with surface and downhole operating at 50Hz power. This part of the contract was completed in November of 2007. The remaining two lines with 30 wells remain for conversion in 2008.

During the early stages of the contract, JO recognized that they need more VSDs for problem wells and they ordered another 68 VSDs for well optimization. This provided them with more operating flexibility as the conversion took place.

In addition to the conversion, the Contract scope includes the maintenance of 50Hz wells against a fixed Monthly Maintenance Fee (MMF) as well as providing surface and downhole equipment for any new wells drilled by JO. DHE ranges from 300 bpd to 10,000 bpd and runlife targets are set for each field. Incentives are paid to ABC for wells that exceed the target runlife. The operation must support the number of four rig operations 24-hours a day in parallel.

Another deliverable of the contract was the construction of a dedicated workshop for ACC as Wood Group was handling the SUG area until October 2007. From this workshop we stage our operations. We keep a large inventory of equipment (surface and downhole) to support the conversion and maintenance phases of the project. All equipment is pre-delivery inspected prior to being sent to location for installation. We also have two cable repair stations to inspect and repair pulled downhole ESP cable. In addition, we have a teardown bench for reviewing all pulled equipment for failure analysis and have a welding shop to support day to day activities.

The project’s employee base was 92 personnel, and during the initial stages of the project we recruited a number of young engineers from various backgrounds to be trained in our Amgara operation and then sent to Wafra for training with other experienced personnel. These young engineers are now moving into positions of more responsibility and are now a valuable resource for the future growth of APC globally.

Alkhorayef is The Only ESP Contractor for Joint Operations At Wafra

Article

Michael Kruk

15Issue (36) 1429 - 2008

Training sales representatives is one of the core concerns of any business or sales institution. Developing the skills of sales representatives means boosting their expertise, talents and abilities. Such development would ultimately reflect on their efficiency and performance on the one hand, while assisting the growth of their institutions on the other.

Since clients are the starting point of all sales activities, a representative must show interest the clients demands and try to satisfy their needs on grounds of mutual benefit that governs their relation. After all, the customer is the reason for keeping a company within the circle of competition, which helps afford the payment of salries.

It is basically important that sales representatives realize how the process of selling equally involves both sides; i.e. the buyer and the seller. This means that you can’t sell any commodity to a client when he doesn’t really need it. A sales representative can never create the client’s the need for any commodity, yet he can surely help discover and encourage such need. Thus, a successful representative must gather data about the market he works in, the clients and his competitors. He should constantly communicate with the clients in order to satisfy their needs and meet their demands in a convenient manner. Moreover, a representative is entitled to seek possible solutions for any obstacles facing the clients through innovative ideas and whatever services he can offer.

A sales representative must possess good appearance and style, as he is the façade of the company he represents.

On the other hand, any company or institution must develop the skills of its representatives through continuous training sessions. Yet, sales representatives must show flexibility and come up with creative ideas, and consider their clients as the focal points of their activities. In addition, any representative must be highly active and vibrant since selling is not an instinct, nor a sales man is a talking machine or one who can sell any trivia. In any case, these are only misconceptions about sales men.

A sales man, as we noted earlier, must gather data about the market, meet with the clients, look deeper into their problems and find creative solutions, and relate quality to price.

Finally, a clever sales man must be able to collect debts as scheduled with the client, for selling can never be successful without collection.

In conclusion, I wish each sales representative of our precious company all success and best of luck.

Training of Sales Representatives

Article

Tareq Ramadan Hussein

Issue (36) 1429 - 200816

Newly born…… Newly born…… Hatem got a new born……

Newly Appointed…. Welcome

Society

Our colleague Dhayem Al Doussary was blessed with a new baby boy. May Allah shower him with all blessings!

Our colleague Shawqi Taleb Subaih, Al Khorayef Industries/ Equipment Systems Dept. , was blessed with a new baby boy named Mohammad. May Allah shower him with all blessings!

Our colleague Hatem Al Siddiq, Al Khorayef Petroleum, was blessed with Al Siddiq Jr. May Allah bless them both eternally.

Mr. Fahd Al Dawood was appointed in the Credit Dept. as a supervisor for the Legal Works in TOMM and APICO. We hope him all the success in his new responsibilities..

Training Sessions for our Colleagues:

Adel Yehia Msalami of Alkhorayef Group participated in a training course.

Within the framework of a training program conducted by APICS –USA, Mohammad Shahab Rahim passed the exam for the “Certified Supply Chain Professional” course. Congratulations and best wishes.

Mugbel Al Otaibi of Alkhorayef Petroleum took an active part in a training course.

Mohammad GharamAllah Al Zahrani is one of the first employees of the Maritime Sector to pass an advanced scuba diving course. He received the Free Scuba Diving License from the Ministry of Agriculture in Jeddah.

Mohammad Mabkhoot Omar is one of the first employees of the Maritime Sector to pass an advanced scuba diving course. He received the Free Scuba Diving License from the Ministry of Agriculture in Jeddah.

Mr. Abdul Ilah Alkorayef was recently appointed as an administration assistant for the HR Department. We wish him all the success of his mission.

Abdul Ilah As An Administration Assistant For HR Dept.

Turki Al Shagha of Alkhorayef Group participated in a training course.

Fahad Bin Mohammad Alkhorayef successfully attended and passed a "Marketing Professionals" course held in Dubai as part of the Leadership Training Program conducted by Al Khorayef Industries Company/ Equipment Systems Dept.

Leadership Training

Abdulrahman Muhammad Al Ghamdi successfully attended and completed the Project Management Professional PMP Course.

Congratulations for ExcellenceOur colleague Mohammad Abdel Tawab Saeed of the Maritime Dept. at Alkhorayef Industries, celebrated the occasion of honoring his son and daughter, Jihad and Sarah, for their excellent academic results. Jihad was honored by director general of Education, Mr. Abdullah bin Ahmed Al Thaqafi while Sarah was honored at Effat College in Jeddah.

17Issue (36) 1429 - 2008

Condolences to Fahad Aldussary

HR Dept. of Alkhorayef Group conveys its grief and condolences to our colleague Fahad Aldussary, Government Relation Specialist/AGC, for the death of his Father who passed away in Ihssa. May Allah rest his soul in paradise…. We are all to Allah and to Him we shall return.

Condolences to Tariq Banajah

The HR Dept./ Alkhorayef Group expresses its grief and condolences for the death of the brother of our colleague Tariq Banajah Cashier at AIC Jeddah Marine Branch who passed away. Calling Allah to rest his soul and dwell him in paradise. We are all to Allah and to Him we shall return.

Condolences to Eng. Saad Awad

Our colleague Eng. Saad Awad – GM Tabuk Branch – received condolences for the death of his late uncle who passed away last May. Alkhorayef Group extends its deepest condolences to Mr. Awad for his loss, Calling Allah to rest his soul and dwell him in paradise. We are all to Allah and to Him we shall return.

Condolences to Mohammad Luqma

Our colleague Mohammad Abdallah Luqma- GM Jeddah Branch, suffered the loss of his brother who passed away. Alkhorayef Group extends its deepest condolences to Mr. Luqma for his loss, Calling Allah to rest his soul and dwell him in paradise. We are all to Allah and to Him we shall return.

Condolences to Saad Ibrahim Al Smari

The HR Dept./ Alkhorayef Group expresses its condolences to our colleague Saad Ibrahim AlSmari, GM/ Machinery Systems Dept., for the death of his uncle who passed away. Calling Allah to rest his soul and dwell him in paradise. We are all to Allah and to Him we shall return.

Condolences to Abdel Fattah Awad

The HR Dept./ Alkhorayef Group expresses its condolences to our colleague Abdel Fattah Awad, Accountant/ Maritime Sector - Al Khobar, for the death of his mother who passed away in Sudan. Calling Allah to rest her soul in paradise. We are all to Allah and to Him we shall return.

Issue (36) 1429 - 200818

Alkhorayef In Kuwait Pioneers of Water and Oil Production...

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