International Dayfor People withSpecial Needs

December 2014

Monthly Magazine Published By Kuwait Oil Tanker Company's - Public Relations & Admin Services Group

Completion of fleet Phase-III Renewal plan

Safety Award awarded to KOTC at Lloyd’s List MEISC 2014 Awards

KOTC Win Two prizes at South Korea

December 2014

Editor In Chief

Editorial

Manager of the Public Relation& Administrative Services Group

P.O.Box 810Safat, 13009

Kuwait

E-mail:nakilat@kotc.com.kw

Khaled Abdul Aziz Al Doub

Public Relation Department

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"Al-Kout" Fleet Renewal Phase-III Finale

KOTC Obtains Two Educational Awardsin Korean Experience Program

Safety Award awarded to KOTC atLloyd’s List MEISC 2014 Awards

1December 2014 EDITORIAL

New Achievement I am most pleased to congratulate all employees at KOTC for the completion of Phase-III of our fleet modernization plan, which comprised of the building of 9 oil tankers: 4 VLCC, 4 medium range crude oil and 1 product tanker and one long range AFRAMAX LR-2. All tankers have been delivered, last of which Al-Kout was delivered at the end of October to complete Phase-III ahead of time (earlier scheduled at the end of this year). Now, we have a Fleet of 30 tankers of different sizes and purposes. Through the fleet modernization, we maintain a secure transportation of Kuwait crude oil and products, support KPC strategy and provide the best services for the International Market. Through increased operational competency according to the highest international standards in robust hull, safety equipment and high resiliency in loading/unloading of cargo, we provide better environment protection, maintain the Company’s reputation and create job opportunities for the Kuwaitis as engineers and marine officers on deck of the fleet. These achievements did not come out of the oblivion; our dedicated and loyal employees have been remarkable in their hard effort for achieving the Company’s strategic objectives through the fleet modernization. Therefore, I render my sincere thanks to our team at Busan and Ulsan for supervising the building of tankers. They worked night and day to ensure that works were carried out properly and according to the agreed specifications. I also thank all other Groups within KOTC for their effective contributions in this achievement. I pray to Allah to keep our tankers and their crews always safe and sound. World AwardIn keeping up with our streak of success, we recently collected the international Lloyd's List Security & Safety Award as the best transporter in the Middle East & Indian Subcontinent in 2014. This outstanding achievement is an important classification regionally and internationally. This indicates not only KOTC commitment to the highest safety and security standards but also its responsibility as a national and strategic transporter for Kuwait and KPC.KOTC is the only Kuwaiti company in the Middle East to be shortlisted in this category. The main criteria behind the selection were the Company's eco-friendly tankers, which are equipped to limit the sea and air pollution. The tankers are especially equipped to treat various engine or cargo emissions and the low fuel consumption also reduces emissions. We in the board of directors seek to boost the Company for further achievements and maintain its high status among the world major marine shipping companies. We pray to Allah to keep us on our correct path for achieving our noble objectives for the sake of our dear Kuwait.

Phase-III and Best Transporter

Talal Al-khaled Al-Ahmad Al-SabahChief Executive Officer

December 20142

KOTC celebrated the delivery of "Al-Kout" tanker, the last of fleet Phase-III renewwal plan. In the presence of South Korean Ambassador to Kuwait Mr. Shin Bunam, senior officials of the DSME and KOTC, CEO Sheikh Talal Al-Khaled Al-Ahmad Al-Sabah signed the reception contracts.

By receiving "Al-Kout, KOTC successfully completes Phase-III of fleet modernization in a record time and ahead of schedule. Instead of the scheduled delivery date in December 2014, the tanker was delivered in October 2014. KOTC has now 30 tankers of various purposes and sizes

ready to fulfill KPC plans and international marketing needs. Al-Kout maximum load capacity is 2.2 million barrels. It is 333 meters in length, 60 meters in width, 22.5 meters draft and 16.2 knots speed. Al-Kout is classified by the international classification body CLASS NK.

"Al-Kout" Fleet Renewal Phase-III Finale30 Tankers of Various Types and Purposes

Specifications of new tankers exceed the international classification requirements

Sheikh Talal: Management and employees joined efforts is behindthe early completion of Phase-III

NEWS

Sheikh Talal Al-Khaled with the Company’s leaders, a side photo at “Al-Kout” tanker reception ceremony

Sheikh Talal Al-Khaled & Mr. Jamil Al-Ali with Korean officials Signing Al-Kout” reception delivery

3December 2014

"By joining efforts of the management and employees, Al-Kout now completes Phase-III of fleet modernization plan," Sheikh Talal said on the occasion. "Since 2000-2001, we adopted the long strategy for gradually renovating the fleet to keep up with Kuwait strategic needs, oil production increasing plans and international marketing requirements." "During the last 10 years, since 2004, the three modernization phases have been completed acceding to the international classification requirements and international marine organizations for the current

or future environmental and safety specifications," Sheikh Talal added. "Our modern tankers won several world awards for safety and environment protection. The good news headed the world concerned press as a sign of the highly raised Kuwaiti flag in the world marine industry." Sheikh Talal pointed out that after the completion of the three renewal phases, the strategic targets for securing safe transportation of Kuwait crude oil and products as well as supporting KPC 2030 strategic plan have been achieved. "We provide the best marine transportation

through high quality and excellent reputation while creating job opportunities for the Kuwaitis." He said that KOTC has kicked off Phase-IV of fleet renewal plan, and building docs are already qualified for 2 VLGC. "The tender will be floated before the end of this year," he said. Phase-III of fleet renewal plan included building 9 tankers, out of which are VLCC, one crude and products long range tanker AFRAMAX LR-2, made by the South Korean Company DSME. 4 double-hull (MR) product tankers were built by Hyundai Mipo Dockyard.

NEWS

A gift from Sheikh Talal Al-Khaled Al- Ahmad Al-Sabah to Mr. Farouq Gillani

A gift from Sheikh Talal Al-Khaled Al- Ahmad Al-Sabah to a Korean official

Sheikh Talal Al-Khaled Al- Ahmad Al-Sabah with a Korean official

Sheikh Talal Al-Khaled Al- Ahmad Al-Sabah thanks KOTC employees for completion of fleet Phase-III modernization plan

December 20144 REPORT

Through the fleet modernization plan, some of the targets include: maintaining a strategic and secure cover for the transportation of Kuwait crude and oil products, supporting KPC 2030 strategy, providing the best marine transport marketing through

quality services, maintaining International standards and creating work opportunities for the Kuwaitis as engineers and marine officers in the fleet. The tankers are built according to the latest world design with the highest technical and technological specifications.

As well, KOTC follows all current and future standards regarding the international marine laws, major oil companies requirements and international classification organizations. The new tankers are environment friendly as they are equipped with gas

Phase-III of Fleet Renewal Plan Completed Included Building Nine Tankers VLCC, Medium and Long Range

KOTC maintains the strategic cover for Kuwait crude oil and products transportation secure

Ours are the most environment-friendly tankers with the best security and safety systems

Sheikh Talal Al-Khaled Al- Ahmad Al-Sabah, KOTC leaders and Korean officials in a group photo

Mr. Riyad Al-Subaie, Mr. Anwar Buftain and a number of Korean officials at “Al-Dasma” steel cutting

Naming of Aframax LR2 tanker “Al-Dasma” Mr. Abdulrahman Al-Hassem and Korean officials working at MR Tanker “Boubyan”

In a new important step forward, KOTC completed Phase-III of fleet moderniz -tion plan. Nine tankers were built by Daewoo Ship Building & Marine Engineering Company and Hyundai Mipo Dockyard Company Ltd. . Four of them are VLCC tankers, 4 Medium Range oil product tankers and one long Range AFRAMAX LR-2 tanker. Altogether, KOTC has now 30 tankers of various types and pur-

poses. The average fleet age is 6 and half years, with a total load capacity of 5 million tons of crude oil, oil products and liquefied gas.

5December 2014 REPORT

emission-monitoring systems. The equipment is designed to treat various gas emissions, such as SOx, NOx, CO2, and volatile organic compounds, especially during loading operations or of the cargo itself which might be released due to changes in temperature or sea conditions. The new tankers have the ability to operate under the extreme weather during peak summer temperature and humidity. They are equipped with advanced ventilation and air-conditioning, safety, security and anti-pirate systems as in Long Range Acoustic Device (LARD), high-pressure water sprinklers, anti-breaking and

surveillance systems that can scan and night-record the tanker's surroundings. As well, the outside ladders are tightly made to deter any incursion. Other systems installed in the new tankers include ballast water treatment system. The sea-water used to fill the ballast tanks is treated before discharge into the territorial water at loading ports. This process uses the ultra-violet technology as an extra measure to eliminate the bacteria and other micro-organism which may harm the marine environment. A relevant international law is currently under review by Kuwait authorities, and is anticipated

to be approved in the year 2016. This reflects the fact that KOTC is ahead in International Maritime Standards . Fleet modernization plan is the top most priority of KOTC. The aim is increase the loading capacity for the transportation of Kuwait’s oil all over the world in order to keep up with KPC’s strategy of increasing crude oil production capacity to 4 million bpd. Phase-IV has already been kicked-off with the start of building two new LPG VLGC tankers. Both will replace "Gas Al-Mutlaa'" and "Gas Al-Gurain" tankers which will complete 25 years of service by 2017/2018.

Group photo at VLCC Tanker “Al-Derwazah” reception ceremony

Group photo at MR Tanker “Kaifan” tanker reception Group photo at MR Tanker “Mutriba” tanker reception ceremony

December 20146

The Medium Range Tanker "Burgan" The chemical and petroleum by-products tanker "Burgan" has a total 340,000 barrel of load capacity, 185.99 meters in length, 32.2 m width, 18.5 m draft and 15.5 knots /h speed. It has a competitive edge in the International Chartering market due to low consumption of fuel and ability to discharge its cargo in less than 19 hours.

The Very Large Crude Carrier "Al-Yarmouk" The VLCC crude oil tanker "Al-Yarmouk" has a total load capacity of 2.2 million barrels, 333 meters in length, 60 metersin width, 22.5 meters draft and 16.2 knots /h speed. It’s low fuel consumption and ability to discharge its cargo in less than 24 hours make it competitive in the International Chartering market.

The Very Large Crude Carrier "Al-Derwazah"

The VLCC crude oil tanker "Al-Derwazah" has a total load capacity of 2.2 million barrels, 330 meters in length, 60 m width, 22.5 m draft and 16.2 knots /h speed. Its low fuel consumption and ability to discharge its cargo in less than 24 hours makes it competitive in the International Chartering market.

The Very Large Crude Carrier "Al-Funtas" The VLCC crude oil tanker "Al-Funtas" has a total load capacity of 2.2 million barrels, 330 meters in length, 60 m width, 22.5 m draft and 16.2 knots /h speed. Its low fuel consumption and ability to discharge its cargo in less than 24 hours makes it competitive in the International Chartering market.

The Medium Range Tanker “Bubyan” The chemical and petroleum by-products tanker "Bubyan" has approximately 340,000 barrels of load capacity, 186 meters in length, 32.2 m width, 18.5 m draft and 15.5 knots /h speed. Its low fuel consumption and ability to discharge its cargo in less than 19 hours make it competitive in the International Chartering market.

REPORT

7December 2014

The Medium Range Tanker "Kaifan"

The chemical and petroleum by-products MR tanker "Kaifan" has a total load capacity of 340,000 MT, 186 meters in length, 32.2 m width, 12.37 m draft and 15.2 knots /h speed. It’s low fuel consumption and ability to discharge its cargo in less than 19 hours makes it competitive in the International Chartering market.

The Medium Range Tanker "Mutriba"

The chemical and petroleum by-products MR tanker "Mutriba" has a total load capacity of approximately 340,000 MT, 186 meters in length, 32.2 m width, 12.37 m draft and 15.2 knots /h speed. "Mutriba" has a low fuel consumption and ability to discharge its cargo in less than 19 hours makes it competitive in the International Chartering market.

The Very Large Crude Carrier "Al-Kout"

The VLCC crude oil tanker "Al-Kout" has a total load capacity of 2.2 million barrels, 333 meters in length, 60 meters in width, 22.5 meters draft and 16.2 knots /h speed."Al-Kout" has a low fuel consumption and ability to discharge its cargo in less than 24 hours makes it competitive in the International Chartering market.

The Aframax LR-2"Al-Dasma"

The petroleum by-products tanker "Al-Dasma" has total load capacity of 108,000 MT, i.e. 785,000 barrels. Its length is 250 meters, width 42 m, draft 13.7 m and has a speed of 15.2 knots/h. It is economic in fuel consumption which makes it competitive in the International Chartering market.

REPORT

December 20148 NEWS

Winners of Lloyd's List 2014 in a group photo

KOTC collected the international Lloyd's List Safety Award at the Lloyd’s List Middle East & Indian Subcontinent (MEISC) 2014 annual ceremony held in Dubai. The award was received by KOTC’s CEO Sheikh Talal Al-Khaled Al-Ahmad Al-Sabah. KOTC was shortlisted for a number of categories, including the Environment Category, in which KOTC came second, Ship Operator Category, Training Award and Safety Category, which was

won by KOTC. "It is a major achievement and an important classification regionally and internationally," Sheikh Talal described the Award. "The Award mirrors not only KOTC commitment to the highest safety and security standards but also its responsibility as a national and strategic transporter for Kuwait and KPC." Sheikh Talal presented the Award to all KOTC employees and praised their dedication and persistence for raising

Kuwait's name high through boosting KOTC status as a major international marine transporter. KOTC is the only Kuwaiti company in the Middle East to be shortlisted in this category. The main criteria behind the selection were the Company's eco-friendly tankers which are equipped to limit the sea and air pollution. Its special equipment treats various engine or cargo emissions. Its low fuel consumption also reduces emissions.

Safety Award awarded to KOTC atLloyd’s List MEISC 2014 Awards

Sheikh Talal Al-Khaled: Reflects the Company Commitment asa National & Strategic Transporter

Mr. Jamil Al-Ali speaking at Lloyd's List ceremony at Dubai Mr. Jamil Al-Ali receiving the Award

9December 2014 NEWS

Employees at Fuchia Mobile Co.

Cap. Adel Al-Sulaihem & Mr. Badie El-Nahas viewing a motorbike specifications

Employees viewing Kishta Company products

Power Boat & Safari Accessories for land tools

In keeping up with the services provided to the employees, Public Relations & Administrative Services Group organized the 3rd consecutive exhibition for camping requirements at the Company's main office. It was held for

3-days and the items on display were at a discounted price. The companies involved were: Al-Khudari Co. for land hunting tools, Ala-Kefak sweets, Al-Huseinan Est. for Trading & Contracting, Al-Neel Star for satellites, Kishte Co., Bisht

Co., Al-Ghanem Motors for motorbikes, Power Boat & Safari Accessory for land tools & equipment, Al-Yusra food stuffs, Solarti for power tools, Fuchia mobiles, United Prestige for real-estate and Durra Sader for Trading & Contracting.

Reduced prices for EmployeesAt Camping Exhibition

Mrs. Dalal Al-Asfour and Mr. Nawaf Al-Huseinan

Employees viewing products of Al-Khudairi Co. for land hunting tools

December 201410 NEWS

Fleet Cost Team Leader Bader Al-Saleh and Fleet Projects Supervisor Abdullah Al-Shamali collected two awards at the Daewon Advisory Services educational training course. The 6-day course tackled the South Korean economic story and its success factors. Delegates form KOTC, KNPC and PIC participated in the course. The program covered the South Korean experience and advancement in the fields of technology, highlighting Korea’s leading positions especially in ship-building, steel fabrication, petrochemicals, and semi-conductors. Daewon has customized the program to have the visiting delegation

introduced to the latest in technological advancements applied at various companies that are leaders in different sectors including refineries, medical centers, CCTV centers and others. Towards the end of the training program, the delegation was given the task to prepare a presentation revolving around the benefits of the programs and how can the experience be implemented in Kuwait. Mr. Al-Shamali was awarded for the best presentations in front a panel of Korean high executives of various companies and governmental officials in the presence of the Kuwaiti Ambassador at Korea Jasem Al-Bedeiwi. Al-

Shamali emphasized that the Korean success elements are already available and feasible in Kuwait. Meanwhile, Mr. Al-Saleh got the Performance Star Award. Al-Shamali and Al-Saleh were praised by Daewon’s CEO describing them as “Good Ambassadors” of KOTC. Upon their return, both were honored by KOTC CEO, Sheikh Talal Al-Khalid Al-Ahmad Al-Sabah and DECO for Fleet Affairs, Mr. Ali Shehab. Daewon is an independent advisory company. It concentrates in strengthening relations between GCC countries and East Asia states. It has a wide experience in the Middle East and East

KOTC Obtains Two Educational Awardsin Korean Experience Program

Best Performance Prize to Al-Shamali: Korean Success Factors Available in Kuwait

South Korean Success Story in 6-Day Course

Group photo for the Kuwaiti delegation with Korean officials at the educational training course

11December 2014 NEWS

Asia in providing high-level consultations to GCC institutions and selecting potential customers in East Asia for investment joint ventures. As well, Daewon prepares studies and surveys about possible investment opportunities in East Asia,

consultation regarding legislations and cultural matters and help the East Asian major companies find partners in GCC. One of Daewon’s leading programs was the latest “Education Trip to Korea,” which was tailor made for top and executive management.

Participants in this trip meet top policy and decision makers who stand behind the Korean quick economic advances and diversification, including current and former ministers and CEOs of leading Korean companies, which are strongly expanding in the world market.

Mr. Abdullah Al-Shamali receives the Best Performance Award

Mr. Bader Al-Saleh and Mr. Abdullah Al-Shamali speaking about the Korean experience

The Kuwaiti delegation to the educational training course in a group photo

Mr. Bader Al-Saleh receives the Performance Stars Award

The Kuwaiti delegation touring a factory

December 201412 NEWS

As part of PIC concern to be involved in the social activities, Public Relations & Administrative Services Group celebrated he World Child Day (WCD) at Al-Shaab Park. Various kids games and activities were part of the day like face drawings, henna and many other joyful rides.

The employees' children got the chance to participate in 28 games at Al-Shaab amusement park. This is in line with the United Nations General Assembly recommendations when the world celebrates WCD on November 20th of every year to make it a day of love,

understanding and friendship among the world kids and to draw attention against child violence, neglect and enforced hard labor. The day also aims to urge the governments to issue children protection laws against all types of violence.

PIC Employees Celebrate WCD

Mrs. Dalal Al-Asfour and children

Family participation

Face painting

Employees involved in competitions

One employee with her kids

Two families at International Child Day

13December 2014

Human Resources & Career Development Group organized a seminar on the Group Health Insurance System presented by the Gulf Insurance Company (GIC). The seminar was conducted by Dr. Dua'a Abou Rizk and Assistant Manager - Medical Specifications

and Dr. Muhammad Shawki - Senior Health Insurance Operations Manager. KOTC employees were attentive in discussing some problems they come across during their hospital checkup. In reply, they were promised

by the GIC officials to find the solutions soon. The employees' comments regarding the GIC services were noted by Senior Customer Service Supervisor - Mrs. Ghadir Fahim so these could be dealt with in the near future.

Group Health Insurance System Seminar Issues Discussed with GIC Officials

The ideal employee for the month September 2014 Hanadi Awad: Valuable Trust from the Company's Management Ms. Hanadi Awad, Manpower & Compensation Senior Controller- Human Resources & Career Development Group, has a Diploma in Management from the Business Studies University in 2011 and joined KOTC in May 2012. Ms. Hanady Awad expressed her joy for receiving the Ideal Employee Certificate. She said that the honor is a great motivation to develop her work abilities and skills. She thanked the company's management for giving her this precious trust.

Badie Al-Nahas: The Ideal Employee Title is a Responsibility Mr. Badie Al-Nahas, Superintendent Fleet Marine Operations Group, "MA & RA" has a Chief Engineer Certificate from the Arab Academy for Science, Technology, and Marine Transportation. He joined KOTC in 1987 as an engineer on the fleet deck. On the occasion of receiving the Ideal Employee Certificate, Mr. Al-Nahas said that he was overwhelmed with joy for the management’s trust. He said that he will endeavor to keep upto their expectations and that he would continue to put in efforts and work hard to maintain a high status of the Company and to keep upto the award which doubles the responsibility on whoever receives it.

LAST PAGE

Some of the attendees Interaction and queries with Gulf Insurance Company

15ديسمبر 2014