Fast Track Training & Induction Model A Drilling Based Training Model for Fast & Quality Deliverance in Times of Rapid Growth

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Fast Track Training & Induction Model A Drilling Based Training Model for Fast & Quality Deliverance in Times of Rapid Growth Ayad Al-Kandari, Mohannad Al-Mohailan, Saleh T. Muqeem, Ashish Gohain, Bader Jawhar, Khalid Al-Hindi Presented By Ayad Al Kandari IADC Drilling HSE conference exhibition Asia Pacific 2011 Marina Bay Sand, Singapore

Agenda Organization Production Overview Sustaining Long-Term Strategies Manpower Development Drilling Fast Track Training & Induction Model

Organization Kuwait Petroleum Corporation

Organization (cont d 1) Kuwait Oil Company (KPC subsidiary) Chairman & Managing Director Deputy Managing Directors (Directorate Level) Planning & Gas Admin & Fin. Tech. Svcs. Exploration & Production Development North South & East West Group Manager ( 4 to 7 Managers per Directorate)

Production Overview Kuwait s Oil and Gas Fields have the following production: Oil Production 2.5 MBOPD Current Production Capacity 3.030 MBOPD Strategic Oil Production Target by 2020 4 MBOPD

Production Overview(cont d 1) Kuwait Oil & Gas Fields (Development)

Production Overview(cont d 2) Category of wells Area Field Reservoir Type Rig Type South Ratqa Lower Fars HO VER 350 HP Depth (FT) 1,100 to 1,150 SA & RA MA & BG VER 1500 HP 8,600 NK S&EK SA & RA MA & BG DEV 1500 HP 8,600 RA AD RQ Greater Burgan ZU VER 1500 HP 10,500 DEV 1500 HP 10,700 TY VER 1250 HP 5,000 ZU DEV 1500 HP 12,200 HOR 1500 HP 11,700 ZU DEV 1500 HP 11,000 HOR 1500 HP 11,700 VER 750/1000 HP 5,000 Burgan DEV 1000/1500 HP 6,000 HOR 1500 HP 7,700

Production Overview(cont d 3) Category of wells (cont d) Area Field Reservoir Type Rig Type Depth (FT) VER 1500 HP 10,500 MN DEV 1500 HP 10,700 WK MO HOR 1500 HP 12,500 VER 1500 HP 9,200 UG DEV 1500 HP 9,300 HOR 1500 HP 11,000 EXPLORATION CRETACEOUS VER 2000 HP EXPLORATION / GAS DEVELOPMENT 8,000 to 13,000 JURASSIC VER 3000 HP 16,000 EXPLORATION PALAEZOIC VER 3000 HP 18,000 to 25,000

Sustaining Long-Term Strategies RAPID EXPANSION OF DRILLING & WORKOVER RIGS No. of Rigs 70 60 50 40 30 20 10 0 58 44 19 2007-08 2009-10 2010-11

Sustaining Long-Term Strategies (cont d 1) DEVELOP A POOL OF TECHNICALLY CAPABLE MANPOWER WITHIN A SHORT PERIOD OF TIME No. of Manpower 500 400 300 200 100 0 469 314 194 2007-08 2009-10 2010-11

Manpower Development Who were hired? 1 TECHNICALLY CAPABLE 2 3 4 EXPERIENCED TRANSFORM FRESH GRADUATES TO CAPABLE ENGINEERS, CAPABLE OF TAKING UP THE CHALLENGE AT HAND. INGRAIN HSE CULTURE THOROUGHLY 5 AND ACHIEVE ALL THE ABOVE IN A VERY SHORT TIME

Manpower Development (cont d 1) How we hired? RECRUITMENT FRESH GRADUATES RECRUITED FROM KUWAIT HIRING EXPERIENCED MANPOWER HIRED TRAINING ELABORATE TRAINING PROGRAM PLANNED AND IMPLEMENTED FOR NEW RECRUITS.

Manpower Development (cont d 2) Recruitment & Training Sponsor (Manager-Dev. Drilling) Team Leader (Head of Training Team) 4 Senior Engineers & 1 Training Coordinator New Recruits / Graduates

Manpower Development (cont d 3) Roadmap developed Fast Track Induction Model KOC recruited and hired Fifty (50) Kuwaiti UD Engineers, the largest by far in company history. Trained by a team of dedicated professionals. Set Project Team Establish Quality Control Tool Implementation Acquire Plan Assess Resources Developed Challenges Set Methodology Objectives Model Evolved

Manpower Development (cont d 4) Training Challenges Coach/Mentor Availability & Competency Special Program readiness Type of the recruited candidates Gender / Country (culture) Profession

Manpower Development (cont d 5) Training Team Objectives Accelerate training requirements Increase work skills Enhance competency level in short period Fit the UDs to handle rig operations within 1 year Ensure to meet the group target growth needs

Manpower Development (cont d 6) Methodology Identify basic training needs. Identify skills and training level in respect to time requirements Formulate an intensive program allocating all group resources. Separate the program into two phases, office & field training. Customize the training needs depending on education background. Consider the special needs for the female engineers. Identified areas and methods for quality control. Formulate and develop a competency verification process.

Manpower Development (cont d 7) Training Quality Control Tools What to learn Handbooks (9 full sets) When to learn Breakdown program (day by day) How to learn Detailed guideline Who will teach Two (2) coaches from office & rig site Reports To ensure amount of knowledge gained Evaluation sheet To control the training from office Quizzes To ensure the quality of knowledge gained Management Interaction One on one basis Competency book To ensure coaches commitment

Drilling Fast Track Training & Induction Model Familiarization program Field Training University Workshop Office Training Competency exercise Gr#12 0.75 month (3 weeks) 4 months (16 weeks) Time Frame 1.25 months (5 weeks) 4 months (16 weeks) 2 months (8 weeks) Total 1 year to complete

Drilling Fast Track Training & Induction Model (cont d 1) Expected Level of Competency 1) Not required, or no knowledge 2) Understands basic principals but has not applied them to real work 3) Has practical experience of using skill in doing 'real' work under guidance 4) Applies skill to routine or frequently performed tasks without guidance 5) Carries out all but the most complex tasks in this skill area independently 6) Carries out or leads the completion of complex tasks in this skill area 7) Acts as an 'internal consultant' within KOC in this skill area level skill 1 level skill 2 level skill 3 level skill 4 level skill 5 level skill 6 level skill 7

Drilling Fast Track Training & Induction Model (cont d 2) Main Program Components Introductory program for the groups duties, functions, rules and contractors responsibility. Specialized in-house courses to quickly fill the educational background gap. Specialized field training 6 months for male UDs & 2 months for female UDs. Quality check tools and methods to enhance learning techniques. Comprehensive competency assessment for each UD.

Drilling Fast Track Training & Induction Model (cont d 3) Career Paths Drilling Fluids Drilling Bits Main Rig Component Acquired Training Skills Direction al drilling Well Control Others Drilling Engineering Operational Engineering Rig Supervisory

Drilling Fast Track Training & Induction Model (cont d 4) Competency as per Career Choice (Sample) Career Path Skill Areas Detailed Skilled Work Operational Engineering Rig Equipments Well Control Rig sizing, types, specifications, Mast, substructure, rig rating. Etc Kill sheet, kick detection, kick control

Drilling Fast Track Training & Induction Model (cont d 5) Development of in-house Competency Program for: Drilling & Workover Operational Engineer Level I Drilling & Workover Operational Engineer Level II Drilling & Workover Supervisor - Level I Drilling & Workover Supervisor - Level II Dev. Drilling Budget & Cost Engineer Dev. Drilling Casing & Design Engineer Dev. Drilling Cementing Engineer Dev. Drilling Mud Engineer

Drilling Fast Track Training & Induction Model (cont d 6) UD Competency & Our Commitment

Drilling Fast Track Training & Induction Model (cont d 7) Competency Check-up Program

Drilling Fast Track Training & Induction Model (cont d 8) UD Training Cycle

Drilling Fast Track Training & Induction Model (cont d 9) UD Training Cycle (cont d) BACK SIDE FRONT SIDE

Drilling Fast Track Training & Induction Model (cont d 10) Key Element for Program Success Sponsor Ownership Strong Team commitment to the program Constant feedback from the UDs Discuss concerns & challenges Review the program with the sponsor and project team on regular basis Flexibility to adjustment in the program