Other Strategic Directions

1. Overall Performance

• Achieve high levels of performance throughout KPC activities that are in-line with the average performance of IOC peers.
• Achieve a Return on Capital Employed in-line with the average Return on Capital Employed for the peer group, but adjusted for KPC’s special situation.

2. Human Resources

• To foster and maintain KPC’s employees and consider them as the main resource for KPC and its subsidiaries. To create a distinguished working environment that continually encourages and develops loyalty and dedication.
• To fully rely on competent Kuwaiti employees to manage and operate all KPC sectors and other supporting sectors without negatively affecting KPC’s performance and operations.
• To optimize utilization of KPC’s human resource capabilities to let them achieve the highest level of performance.
• To increase KPC and its subsidiaries’ contribution to the development of Kuwaiti society through creating new job opportunities.

3. Training & Career Development

• Reach an international level of performance through enhancing and developing the skills and competencies of Kuwaiti manpower in KPC and its subsidiaries.
• Focus on training and development as a value added investment essential to the future of KPC’s businesses.
• Focus on training, development and professional qualification as a tool for promotion and career progression.
• Develop the Petroleum Training Center (PTC) to international standards to accommodate KPC and its subsidiaries’ training needs.

4. Financial Resources

• Develop systems that provide the optimum levels of financial services including tax planning according to best professional practices to support the strategic objectives for the operating businesses.
• Establish optimal financial structures and provide necessary financial resources to meet the cash demand over time of KPC and its subsidiaries’ plans and programs with the lowest cost and proper timing.
• Ensure meeting the need for working capital and manage cash flow from operations efficiently in order to minimize cost and maximize returns.
• Manage KPC’s financial investments and cash surpluses within proper structures and arrangements over time in order to support KPC’s strategic objectives and within an acceptable framework of risk tolerance and approved standards.

5. Business Model

• Redesign and reorganize the business processes of KPC and its subsidiaries to improve performance efficiency and effectiveness.
• Develop common policies and procedures related to HR, HSE, etc. in order to be applied by KPC and its subsidiaries, allowing flexibility in specific areas to be inline with the nature of KPC’s activities.

6. Heath, Safety and Environment ( HSE)

• Comply with local HSE standards and regulations.
• Pursue application of the best and most appropriate international HSE standards in order for KPC to become a regional leader in HSE performance.

7. Risk Management

• Develop and apply common approaches and policies to manage all risks facing KPC in the most efficient and effective manner.

8. Technology

• Establish processes to manage and apply the latest technologies throughout KPC’s businesses.
• Anticipate future needs of the latest technologies and applications throughout KPC’s businesses.
• Develop skills and expertise to use the latest technologies and applications.
• Improve the process of applying the latest relevant available technologies and applications.

9. Research

• Develop a comprehensive long-term plan and program for investment in research and development.
• Strengthen the coordination with local research institutes and organizations on studies, researches and information related to the oil industry.

10. Information Technology

• KPC will be a regional industry leader in applying the latest relevant information technologies that will enhance its performance, improve its efficiency and reduce its operating costs in a highly secure manner.
• Achieve a high standard of IT competency for KPC and its subsidiaries work force to enable them to gain maximum benefits from information technologies, enhance their performance and efficiency, and achieve overall KPC’s objectives accordingly.
• Adopt and apply approved internet based initiatives in KPC and its subsidiaries to become a driver for profit increase and cost reduction.

11. Contribution to Local Economy

Increase KPC’s contribution to the growth and development of the local economy through creating viable investment opportunities for private sector as follows:

• Increasing participation of the private sector in KPC’s activities and operations in a way consistent with the strategic nature of the oil industry.
• Increasing dependence on the private sector in contract, engineering and support services, giving priority to companies that employ the highest number of Kuwaitis.
• Continue evaluation of outsourcing some KPC activities.
• Concentrating on implementing projects and spending capital locally.
• Encouraging the private sector to utilize the output of KPC operations to establish downstream industries.