Kuwait Oil Company North Kuwait Heavy Oil 1

Kuwait Oil Company North Kuwait Heavy Oil 1 st EOR commercial Project 07 -May-17

HO Strategic Production Targets • 2030 Strategy has envisioned the development of heavy oil resources in phases. • KOC first heavy oil EOR project will be commissioned on 2018/19

NK Heavy Oil Milestones 1979 Drilled the 1 st exploratory well in South Ratqa 1982 1 st Cyclic Steam Stimulation (CSS) pilot 1984 2 nd Cyclic Steam Stimulation (CSS) pilot 1990 All operations ceased 2007 Resumed operations in South Ratqa 2008 Commissioned 1 st cold production with sand pilot 2009 1 st Initiated facility project for commercial production 2010 • Commissioned single well CSS pilot. • Drilled 1 st Horizontal well 2011 Tested cold horizontal wells 2014 Umm Niqa LF HO discovery 2015 • Signed the contract of facility project for 1 st commercial production. • commissioned 1 st SF pilot Today +1150 wells drilled. Facility under construction

Reservoir & Fluid Characteristics • Unconsolidated Sandston • Depth: 400’ to 600’ TVD • Permeability: 1, 000 – 8, 000 md • Porosity: 30 -35% • Reservoir Pressure: 50 -250 psi

South Ratqa Field Overview • KOC HO 1 st EOR commercial project will be achieved through developing South Ratqa Field – Lower Fars Reservoir located in NK. N Area: 1415 km

NK HO 1 st EOR commercial Project Remaining 98% Phase I 2% • Huge HO resources distributed over large area of North Kuwait. • North Kuwait conventional oil fields 3 times smaller than South Ratqa Field • NK HO 1 st HO EOR commercial Project represents only 2% of the total resources available in South Ratqa Field • The scale of operations in phase I is equivalent to the largest steamflood project in the world (Duri, Indonesia).

NK HO 1 st EOR commercial Project Inverted 9 spot 20 Acre patterns • 60 MBOPD will be produced using Cyclic Steam Stimulation followed by Steam flood • A total of 1518 wells will be required to Produce and maintain 60 MBOPD for 10 years.

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