WWW.EXPLORATIONWORLD.COM
DECEMBER 2014
THE WORLD’S 7
LARGEST DEVELOPING LNG PROJECTS Chevron Joins Other Industry Giants, UN in Push for Safer Roads Why Australia Could Be the Next Energy Superpower
EDITOR’S COMMENT
“The only limit to our realization of tomorrow will be our doubts of today. Let us move forward with strong and active faith.” – Franklin D. Roosevelt, 32nd President of the United States Progress is a tricky thing. Often times we don’t even notice its effects. It can seep from mind to mind in a gradual acceptance of an idea or a style or a technology, born from times of plenty and scarcity. It can come as a whisper or as the slamming crash of forceful change —and it is necessary. Just as World War II served as the launching point for a great many trials and atrocities, so too did it give birth to innovations in vehicles, energy, medicine and more. From the cold brutality and willful ignorance of the Middle Ages came the hopeful inspection and reasoned questioning of the Renaissance. Now as our modern civilization claws its way out of one of the worst periods of economic downturn since the Great Depression, opportunities for the progression of humanity avail themselves once more. Exploration World took a look at some of these opportunities to understand them further. First, we spoke to Chevron about Together for Safer Roads, a coalition of major companies that by working with the United Nations, hopes to help curb traffic-related fatalities by 50 percent by 2020. Then we’ll look at how liquefied natural gas (LNG) is affecting Australia and how a massive surge in liquefaction capacity has the country on track to become the next major energy superpower in the South Pacific. Finally, we look at a slice of LNG developments from around the world and determine the seven largest projects that are in-progress now. Thank you for reading this December issue of Exploration World. As always, please enjoy.
Ian Hanner Editor ian.hanner@wdmgroup.com 3
CO CN OTNETN ETNST S FEATURES
6 Exploration
Chevron Joins Other Industry Giants, UN in Push for Safer Roads
12 Logistics
Why Australia Could Be the Next Energy Superpower
18 Top 10
The World’s 7 NAMCOR Largest Developing LNG Projects
COMPANY PROFILES
26
Wildcat Midstream
USA 26 Wildcat Midstream
AUSTRALIA 34 Baker Hughes Australia
4
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46 Mitchell Services 54 Condor Energy
46 Mitchell Services
54
Condor Energy
34 Baker Hughes Australia
5
E X P L O R AT I O N
CHEVRON JOINS OTHER INDUSTRY GIANTS, UN IN PUSH FOR SAFER ROADS 6
December 2014
R N S
Chevron VP Wesley Lohec explains why Chevron has taken up the cause W R I T T E N B Y: I A N H A N N E R
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E X P L O R AT I O N
CHEVRON JOI
Oil transport by road represents one of the largest liabilities for energy companies.
IN A NOTABLE show of unity, several major companies –including Chevron–have banded together to promote safer driving conditions worldwide. Their coalition, which is working directly with the United Nations, is called Together for Safer Roads (TSR). TSR was formally announced Nov. 13 at the UN by a group of 8
December 2014
high-ranking business leaders from companies including Chevron, Anheuser-Busch InBev, AIG, AT&T, Ericsson, Facebook, IBM, iHeartMedia, PepsiCo and Walmart. The goals of the coalition are inline with those of the United Nations Decade of Action for Road Safety, which calls for significant action before 2021 to cut the number of traffic
INS OTHER INDUSTRY GIANTS, UN IN PUSH FOR SAFER ROADS
related fatalities in half. According to the UN, over 1.3 million people are killed annually in traffic related accidents with an additional 50 million people enduring non-fatal, but debilitating, injuries. The UN puts the global annual cost of such incidents at over $500 billion. “Road safety has no demographic or geographic boundaries and impacts countries of all economic levels, from low- and middle-income to high-income countries,” said Amina Mohammed, the SecretaryGeneral’s special advisor on post-2015 development planning. “Half-way through the United Nations’ Decade of Action for Road Safety, there remains work to do to achieve our goals. Now is the time for the private sector to join forces and help realize our vision of a world where roads are safe for all people.” In addition to UN officials, the coalition of private sector businesses is consulting a panel of experts from academia and other private institutions led by former Acting U.S. Surgeon General Dr. Kenneth Moritsugu on road safety. The panel is slated to release a white paper in 2015 that will serve as a guideline for TSR action plans.
“The expert panel will provide Together for Safer Roads with independent, scientific, evidencebased information, advice and perspectives on road safety, bring a synthesis of the best research to bear and advise on the most critical areas for action to drive results,” Moritsugu said. “We are pleased to see the energy and willingness of the private sector to address important gaps in global road safety.” While road safety might seem out of some of these companies’ areas of expertise, they argue that the insight and access that they are able to bring to the cause will ultimately prove a major factor in driving actionable change. Chevron, for instance, boasts an impressive track record in road safety. With .04 crashes per million miles driven, Chevron has the best road safety record in the energy industry, according to spokesman Braden Reddall. To gain greater insight into why Chevron has taken up this cause, Exploration World spoke to Wesley Lohec, Chevron’s vice president of health, safety and environment and primary liaison to TSR. Lohec, who previously served the company in 9
E X P L O R AT I O N
Car crashes and other traffic-related fatalities are the 8th leading cause of death worldwide. (Phil McDonaldShutterstock) China, Angola and later Venezuela where he directed operations in Latin America, said he’s seen first-hand that road safety is a problem that affects people worldwide, regardless of socio-economic standing. Exploration World: We’ve seen some information about Chevron’s track record regarding road safety, but what makes Chevron an example in this area? Wesley Lohec: We have a very systematic approach we call our Operational Excellence Management 10
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System, which has been in place for about 12 years now. It’s all designed around protecting people and the environment [while] delivering workplace health, reliability and efficiency. As part of that, we’re constantly assessing what our biggest risks are. For many years now motor vehicle fatalities has been one of our largest risks on the work site, but it also has an impact our employees and our contractors outside of the gate, if you will, as one of the most critical risks that, if not managed well, can
lead to fatalities. So it fits very well as a top priority for us. EW: What is Chevron bringing to the table with TSR that it would hope to see implemented on a worldwide basis to improve road safety? WL: Many of our facilities are very, very large and we have roads within those facilities. We have employees and contractors driving on those roads. Some of the roads that we maintain [are] public access and so that’s a large part of our focus. We’ve learned a great deal through managing that challenge of road safety. It’s things like having journey management plans for non-routine travel. So if you have employees driving somewhere they don’t normally drive, they prepare a journey management plan. We have specifications on the types of vehicles, the safety systems within those vehicles, that we have driver training requirements, that we have vehicle maintenance, that we report incidents and learn from them—all those things that we do internally that have helped us improve our road safety over time. Then the question is: how can you work [with] these organizations and benefit from those learnings and provide that information to other
decision makers that might help inform them … where they can make some efforts? And maybe [they can] learn from some of our efforts to make improvements in their fatal incident rates over time. EW: What about your job and this task give you the most satisfaction? WL: I feel very honored to have this position for Chevron as vice president of health, environment and safety, because we’re a company that, with our Chevron way, we really value protecting people and the environment. There’s a whole system on how we try to deliver on that value. I don’t have to push doors open. Doors are very open for me to work with business leaders on how we can get smarter and more systematic about protecting people and the environment. And with a large company—62,000 employees and on any given day over 200,000 contractors—spread out around the world doing inherently risky work, the challenge of how we as a company can make sure those people go home safely to their family and friends at night is a tremendous [task], but also a tremendous reward.
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LOGISTICS
WHY AUSTRAL
COULD BE THE NEXT ENERGY SUPERPOW The South Pacific’s Next Big Player W R I T T E N B Y: I A N H A N N E R
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LIA
T WER
13
LOGISTICS
Both on- and offshore, Australia has massive resource wealth hidden below its
AUSTRALIA IS KNOWN for many things, including its array of unique animals (many of which are highly toxic), the Great Barrier Reef and Steve Irwin, but some analysts predict that in the very near future, Australia could be globally known for something else: liquefied natural gas, or LNG. Australia has for years maintained a thriving mining industry. The country is the second largest exporter of coal 14
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in the world despite having the fourth largest reserves, according to the U.S. Energy Information Administration (EIA). Australia is also the second most prolific iron ore producer in the world behind China. However, natural gas is poised to drastically impact Australian exports in the next decade as a disproportionate number of largescale LNG facilities come online within the nation.
WHY AUSTRALIA COULD BE THE NEXT ENERGY SUPERPOWER
s pristine landscapes.
LNG is the byproduct of a technically complicated process by which adulterants with higher freezing points are stripped from natural gas before cooling the remaining methane and ethane to negative 162 degrees Celcius. At about 1/600 the volume of regular natural gas, LNG makes shipping overseas economically and technologically feasible as it eliminates the need for intercontinental pipelines.
This export capacity is important for the nation that holds an estimated 132 trillion cubic feet of proved plus probable reserves of natural gas between traditional gas and coal bed methane, according to Geoscience Australia. According to the EIA, this is more than enough natural gas to meet Australia’s domestic consumption and still be left with a glut of the resource. In addition to these reserves, 15
LOGISTICS
Michael Schwartz
The Chevron-led Gorgon LNG project is one of several such developments resh
Australia also holds roughly 437 trillion cubic feet of technically recoverable shale gas, the EIA says. It’s no wonder then why Australia was the third largest exporter of LNG in the world in 2013, behind only Qatar and Malaysia. The country currently has three LNG facilities to lean on, including North West Shelf LNG, Darwin LNG and Pluto LNG. North West Shelf LNG, the largest of the three, has the capacity to produce roughly 16.3 million tonnes per annum. While the combined output of these facilities is substantial, it pales in comparison to the wave of 16
December 2014
infrastructure being constructed now. With seven LNG facilities currently under construction expected to begin operations between 2014 and 2017, Australia may very well bump Qatar out of the leading exporter role by 2017, according to Morgan Stanley analysts as reported by The Telegraph. “The ramp-up would be enough to see Australia record a current account surplus in 2015, the first since the second quarter of 1975,” Morgan Stanley East Asia expert Geoffrey Kendrick told The Telegraph. “It is difficult to overestimate the long-term structural importance of this industry to Australia.”
WHY AUSTRALIA COULD BE THE NEXT ENERGY SUPERPOWER
haping Australia’s energy industry. (Chevron)
The EIA estimates that these projects will raise Australia’s liquefaction capacity from more than 24 million tonnes per annum to 86 million, an increase of roughly 256 percent. And with Australia’s proximity to the quickly growing Asian natural gas market, this could allow the country valuable time to carve out a foothold as the go-to supplier for the region. Since the Fukushima disaster, Japan has increasingly imported higher volumes of LNG. In fact, the country is currently the largest importer of LNG in the world, having imported roughly 80 percent of Australia’s supply in 2013,
according to IHS Energy. China meanwhile has begun a campaign to drastically cut back on the burning of coal in favor of natural gas as the standard of living in the country continues to skyrocket. In fact, between 2009 and 2013, Chinese natural gas consumption increased by an average of 16.37 percent annually. While there are certainly other LNG projects in the works in other countries, such as a host of proposed developments in the U.S. and Canada, Australia is uniquely positioned to dominate the LNG market in the coming decade. 17
TOP 10
The World’s 7 L
Developing LNG Proj
These projects could transform the energ Written by: Ian Hanner
Largest
jects
gy landscape
19
TOP 10
Few sectors in modern industry are adapting and evolving with quite the same speed as the energy industry—especially oil and gas. With a host of new drilling techniques, refining processes and miscellaneous technologies, the petroleum industry is often on the forefront of advanced science. Employing professionals from the world of engineering, ecology, chemistry, physics and more, these companies innovate for their own bottom line, but their benefits spread far from the confines of the boardroom. Now there’s another evolving technology that has the potential to revolutionize global energy given adequate investment: liquefied natural gas, or LNG. LNG is the byproduct of a technically complicated process by which adulterants with higher freezing points are stripped from natural gas before cooling the remaining methane and ethane to negative 162 degrees Celcius. At about 1/600 the volume of regular natural gas, LNG makes shipping overseas economically 20 December 2014
and technologically feasible as it eliminates the need for intercontinental pipelines. As it stands, such pipelines are extremely costly and can only be run through shallower water, such as the Langeled pipeline which transports natural gas from Norway to the UK. Though LNG is not new—the first commercial delivery of LNG was in 1964—the technology continues to become more refined, granting greater efficiency and reducing its geographical and carbon footprint. “LNG is a critical enabler of what the IEA called a few years ago ‘The Golden Age of Gas,’” said Foster Mellen, EY senior strategic analyst for oil and gas. “These LNG developments allow gas to become much more of a ‘global’ fuel (like oil is) and less of a ‘regional’ fuel. In conjunction with the ‘shale revolution’ which has significantly grown the supply side of the ‘Golden Age,’ LNG provides the mechanism to expand the demand side through greater accessibility to markets, and the potential sourcing of LNG from lower-priced shale gas will be a big
THE WORLD’S 7 LARGEST DEVELOPING LNG PROJECTS
factor in changing the way natural gas is contracted and sold.” With a multitude of ongoing and proposed LNG developments in the works, it can be difficult to sort through the raw data to establish which projects are going to go ahead based on the strength of their funding and which projects are doomed to fizzle out. Meanwhile, LNG development is coming in almost regional waves. “We are in the middle of one production capacity surge— primarily by the multiple Australian projects, most of which will come online in the next 4 to 5 years,” Mellen said. “That surge will be followed by another; this dominated by LNG export developments in the U.S.—possibly in Canada as well—and by developments in East Africa—Mozambique and Tanzania.” Removing the uncertainty of projects in which the decision to pull the trigger has not yet been made, these are the top seven confirmed LNG projects based on the developer’s production capacity.
7
Ichthys LNG
8.4 million tonnes per annum A joint venture of INPEX, Total, Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas, the Ichthys LNG project is being constructed in northern Australia to liquefy natural gas from the Ichthys field in the Browse Basin. Gas produced at that field will be partially processed at the offshore central processing facility, removing water and other heavy liquids before sending the gas on
21
TOP 10 an 885 kilometer journey through subsea pipeline to the onshore liquefaction facility. The facility has a design capacity of about 8.4 million tonnes of LNG per annum. A related offshore facility that receives the separated condensate will also produce about 100,000 barrels of condensate per day.
06
Queensland Curtis LNG
8.4 million tonnes per annum The Queensland Curtis LNG (QCLNG) project is being developed by BG Group subsidiary QGC Pty Ltd. on the eastern side of Australia near Gladstone. QGC-produced natural gas from the Surat Basin in southern Queensland will be transported via a 540 kilometer buried pipeline to Gladstone before transport to the liquefaction facility. The project entailed roughly $20 billion in investment between 2010 and 2014. QCLNG has a design capacity of about 8.5 million tonnes per annum.
22 December 2014
05
Wheatstone LNG
8.4 million tonnes per annum Developed in cooperation with Chevron (64.14 percent), Kuwait Foreign Petroleum Exploration Company (KUFPEC) (13.4 percent), Apache Corporation (13 percent), Kyushu Electric Power Company (1.46 percent), “together with PE Wheatstone Pty Ltd, part owned by TEPCO (8 percent),� the Wheatstone project broke ground in December 2011. Utilizing two liquefaction trains with a design capacity of 4.45 million tonnes per annum each, the facility will convert primarily natural gas from the Wheatstone and Iago
THE WORLD’S 7 LARGEST DEVELOPING LNG PROJECTS
fields. According to the developers, the remaining 20 percent of gas utilized by the facility will be supplied by Apache Corp. and KUFPEC holdings in the Julimar and Brunello fields.
04
Australia Pacific LNG
9 million tonnes per annum Australia Pacific LNG is the joint venture of Origin (37.5 percent), ConocoPhillips (37.5 percent) and Sinopec (25 percent) to convert Coal Seam Gas to LNG near Gladstone in a project very similar to the QCLNG project. The Australia Pacific LNG project includes ramping up production capacity in the Surat and Bowen Basins in Queensland, the construction of a 530 kilometer pipeline from the gas fields directly to the liquefaction facility being built on Curtis Island. The project entails two liquefaction trains with a production capacity of 4.5 million tonnes per annum each. The cost of those two trains is estimated at $24.7 billion.
03
Gorgon LNG
15.6 million tonnes per annum Developed by Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (1 percent) and Chubu Electric Power (.417 percent), the Gorgon LNG project involves some of the largest and most well-known resource companies in the world. The project includes the construction of a subsea gas gathering system and subsea pipelines that will transport gas produced at the Gorgon and Jansz-lo fields more than 130 kilometers offshore to the LNG facility on Barrow Island. At that point, a portion of the gas would be liquefied and offloaded via a 2.1 kilometer long loading jetty for transport to international markets. The remainder of the gas would go to the domestic gas plant for processing before final transport an additional 90 kilometers 23
TOP 10 to the mainland for domestic distribution. The LNG facility has a projected capacity around 15.6 million tonnes per annum from three trains, while the gas plant will supply roughly 300 terajoules of gas per day, according to the project website. The project also includes “the world’s largest commercial-scale CO2 injection facility,” which will cut down on the project’s greenhouse gas emissions by up to 4.1 million tonnes per year.
02
Yamal LNG
percent), Total (20 percent) and the China National Petroleum Corp. (20 percent). Located in the estuary of the Ob River near Russia’s Kara Sea, the project will ensure the yearround production and export of natural gas from the country’s large Arctic reserves. Utilizing over 200 wells, gas will be processed in three LNG trains with a combined capacity around 16.5 million tonnes per annum. Since the river is frozen nine months out of the year, the partners will commission 16 icebreaker tankers dedicated to the Yamal facility.
16.5 million tonnes per annum The only project on this list that is located near the arctic, the Yamal LNG project is the joint venture of Novatak (60
Ice-breaking ships like this one will be needed to access the Yamal LNG development for most of the year. (Edmond Coche/Total) 24
December 2014
01
Sabine Pass LNG
18 million tonnes per annum Adding value and capability to the already operating Sabine Pass terminal, Cheniere is looking to bring liquefaction capabilities to the Gulf Coast through the addition of four LNG trains with a capacity of about 4.5 million
THE WORLD’S 7 LARGEST DEVELOPING LNG PROJECTS
tonnes per annum each. Located in Cameron Parish, Louisiana, the facility will become bi-directional with the ability to receive and regasify foreign LNG while also producing and exporting domestic supplies. “Due to the abundance of supply and the existing pipeline infrastructure in both Texas and Louisiana, Cheniere believes it can provide an additional outlet
for U.S. natural gas production while offering a stable source of supply for global buyers,” the company states. Though the project is going to initially include four LNG trains, Cheniere is designing the facility to accommodate an additional two trains for a combined LNG production capacity of about 27 million tonnes per annum.
The Sabine Pass LNG expansion, being developed by Cheniere Energy, has the potential to transform Louisiana into a major LNG export hub. (Cheniere Energy)
25
Wildcat Midstream
Wildcat Midstream Maintains Value for Producers
With strong investments in Midstream infrastructure, Wildcat is quickly making a name for itself Written by: Ian Hanner
Produced by: Jason Wright
27
W I L D C AT M I D S T R E A M
From left to right, Chris Rozzell and David Miller at the Wildcat Midstream Caddo facility
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December 2014
E X P L O R AT I O N W O R L D
B
ased in Dallas, Texas, Wildcat Midstream Partners has spent the last five years carving out their niche in the highly-profitable Gulf Coast midstream market with its innovative approach. Underpinning their operations with the belief that producers will save significant dollars by investing small amounts in the right spots, Wildcat has spent the years since its founding in 2011 perfecting a process in which every profitable dollar possible is passed back to the producer. Under the guidance of cofounders Chris Rozzell, David Miller and Mike Davis, Wildcat and its various subsidiaries have grown from humble beginnings to market leaders in the regions they serve. While the company’s slogan, “defined by maximizing your netbacks” means little to someone not steeped in the nuances of the oil and gas industry, it means something substantial to any cost conscious producer. “That is more than a slogan to us,” the company states. “It is our way of life, and it comes from focus on
three areas: maximizing producers’ runtimes through investments in best-in-class equipment and technology; maximizing efficiencies through aggressive fuel and power management; and maximizing product recoveries by matching the right recovery technology with each specific application. In some cases this means investing in cryogenic NGL recovery technology for a natural gas field or complex liquids stabilization and blending systems for field crudes. Other times, the producer may be better off investing in simpler modified refrigeration units where the netbacks of higher recoveries do not justify the added cost and complexity.” In any case, Wildcat refuses to be beat on the quality and attention given to service for producers. Wildcat offers a diverse range of services that span from field level gas gathering to a highly advanced cryogenic processing facility with a design capacity of 140 million cubic feet per day of gas and 400 gallons per minute of amine treating. Adding further value to the company is a project underway w w w. w i l d c a t g a s . c o m
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We Meet Schedules.
FacIlItIES
PIPElInES
Facilities
civil
Refurbishment
new construction
• Bulk Fuel Loading/Storage Facilities • Compressor Stations (Electric, Fuel Gas, and Turbine Generated) • Amine Plants • Cryogenic Plants • Dehydration Facilities • Deoxygenated Facilities • Dew Point Plants • Fractionation Plants • Refrigeration Systems • Sulfur Plants • Nitrogen Recovery Units
Our expertise is in foundation pours of: • Compression • Coolers • Towers • Pumps • Drill Piers • Containments • Skids • Pipe Supports
• Skid repiping • Valve removal and replacement • Piping reroutes • Structural replacement • Skid repair • Insulation and replacement • Electrical and Instrumentation reroutes and replacements • UT metering pit gauging • Internal rust removal • Sandblasting and painting • Bolt and gasket replacement
• Steel pipelines up to 24” • Polyethylene pipelines up to 36”
Dismantle and Demolition • Project consultation • Processing facility plant disassembly, retirement and relocation • Equipment removal • Structural Steel, piping and concrete demolition • Logging and expediting every component
12905 Hwy 36 S. | Caldwell TX 77836 | PO Box 385 | Somervi
Evers and Sons Inc. is a non-union general process plant contractor, with extensive experience and expertise in all phases of oil and gas construction. We specialize in the ground-up construction of pipelines, natural gas processing plants, compressor stations, and bulk liquids loading facilities. We’re also proficient in the modernization, renovation and demolition of existing systems. Our continued success is attributed to our company-wide commitment towards teamwork and safety, which protects our people, our customers and the environment. Being one of the leading gas contractors, we always strive to provide the utmost level of satisfaction to our clients.
IntEgRIty MaIntEnancE
FabRIcatIOn
Pipeline Integrity Maintenance 2” to 30”
ROW clearing and Maintenance
• Multiple types of composite wraps • Steel repair sleeve • Weld Reinforcement sleeve • Leak repair clamps • Pipeline section replacement
• Reclamation of existing ROW • Hand clearing environmentally sensitive areas • Equipment clearing • Shredding • Pipeline marker and sign replacement • Painting of valve settings, risers and crossings
• Process piping for on skid and off skid applications • Carbon steel • Stainless steel fabrication • Meter tubes • Metering skids • Valve skids • Valve settings • Pipeline strainers • Manifold headers • Launcher and receiver barrels • Launcher and receiver skids • Slug catchers • Non-coded vessels and tanks • Heater shells • Flare stacks • Heavy duct work (all diameters) • Valve access platforms • Skids of any size • Pipe racks
line Preparation for Pigging • Block valve replacements and removals • Short radius fitting removals • Fabrication and installation of pig launchers and pig receivers • Pipeline elevation changes • Pipeline re-routes
abandonment • Abandonment of all pipe sizes
ille, TX 77879 | Office (979) 596 2139 | www.eversandsons.com
• Pipe bridges • Large multi-story structures • Module structures
accessory Steel items • Pipe supports • Pipe clamps • Vessel skirts • Base plates • Base rings • All other non-pressure components
SUPPLIER PROFILE
EVERS AND SONS
A non-union general process plant contractor incorporated in the State of Texas, Evers & Sons has extensive experience and expertise in all phases of oil and gas construction, from ground-up construction of pipelines, natural gas processing plants, compressor stations, bulk liquids loading facilities, to modernization, renovation and demolition of existing systems. We are a certified member of the National Women Business Owners Corporation (NWBOC) and the Women’s Business Enterprise Alliance (WBEA and WBENC). Evers & Sons is successful because we rely on a company-wide commitment to teamwork and safety. We are dedicated to providing each employee with an accident-free, drug-free workplace, which protects our people, our customers and the environment. Our safety program starts with new employee orientation and continues with daily safety meetings, monthly training sessions, and ongoing site-specific and skills training. Our outstanding drug and alcohol program incorporates DOT testing and follow-up random testing. Bottom line, we believe a process plants project is done well only if it is done safely. Website: www.eversandsons.com
W I L D C AT M I D S T R E A M
E X P L O R AT I O N W O R L D
in southern Texas. Wildcat is constructing a marine and storage terminal in the region that can facilitate transfer or resources between railway, truck, pipelines and water. “In addition to rail and highway access, the Wildcat Ingleside facilities provide producers and buyers of petroleum products with logistically advantaged marine loading locations along the La Quinta Ship Channel in the Port of Corpus Christi,” the company said. “The Wildcat sites have dock access for inner-coastal barges and ocean-going vessels with a maximum draft of up to 40 feet. The terminal sits on over 300 acres with substantial space to accommodate future growth.” As the company has evolved, it has enlisted the financial backing of two large energy investor partners. Wildcat initially partnered with Liberty Energy in 2011, and in 2012 the company added Highstar Capital as a strategic and investment partner. With the combined backing of the two investors, Wildcat has the ability to aggressively develop projects ranging from $5 million to $500 million.
Company Information INDUSTRY
Sector HEADQUARTERS
Dallas, Texas FOUNDED
2011
w w w. w i l d c a t g a s . c o m
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Baker Hughes
Baker Hughes Australia Dr Through Core Values Base Teamwork, Performance, L Courage
Baker Hughes believes performance excellence wil them from their competitors. Written by: Baker Hughes Produced by: Wayne Masciotro
s Australia:
rives Forward ed on Integrity, Learning, and
ll drive the results that differentiate 35
BAKER HUGHES AUSTRALIA
Baker Hughes provided bifuel services to Cabot Oil and Gas in the Marcellus resultin
A
top-tier oilfield service company with a centurylong track record, Baker Hughes delivers solutions that help oil and gas operators make the most of their reservoirs. Collaboration is the foundation on which we build our business. We listen to our clients to understand their 36
December 2014
unique challenges and then develop solutions designed to help manage operating expenses, maximize reserve recovery, and boost overall return on investment throughout the life of an oil or gas asset. With 60,000 employees in more than 80 countries, our local geomarket teams work side by side
E X P L O R AT I O N
ng in cost savings and reduced environmental impact.
with customers to engineer reliable application-specific products and services that create more value from the reservoir whether the application is deepwater, unconventional hydrocarbons or production and water management. Our history of technology innovation is a cornerstone of our
success. Local teams are supported by global centers of excellence where scientists push the boundaries of value-adding technology to find solutions for progressively more complex technical challenges. At dedicated innovation centers, scientists conduct applied and game-changing critical research. w w w. b a k e r h u g h e s . c o m
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DEDICATED TO THE BEST PEOPLE IN OIL & GAS
ABERDEEN
DUBAI
AUSTRALIA
OPS Group has been dedicated to the best people in oil and gas since 1988. If you are looking to recruit the best professionals in the oil and gas industry, or if you’re a contractor seeking the best jobs, we’re the people to talk to. We operate solely in the oil and gas sector – an industry we’ve been devoted to for more than 25 years. Our dedicated team consists of both time-served industry professionals and experienced recruitment experts alike, so we are better placed to advise our global clients and contractors, 24 hours a day. Onshore, offshore, around the world, we have the expertise and the knowledge to make sure we have the best people for the job. Put simply, we bring the best people in oil and gas together.
OPS GROUP OFFICES:
Aberdeen, Scotland
Dubai, UAE
Perth, Australia
T: +44 1224 712 332
T: +971 4 609 1011
T: +61 863 802 287
info@opsgrp.com www.opsgrp.com
SUPPLIER PROFILE
OPS Group is a global oil and gas recruitment company with premises in Aberdeen, Scotland, Dubai, UAE and Perth, Australia. The specialist organisation was established in Aberdeen in 1988 with a small team of experts and has since expanded to 30 staff and over 300 contractors worldwide. After continued success in the North Sea the company acquired a range of clients across Europe, Africa, the Middle East and Asia which led to the opening of two international offices. OPS Group launched in Dubai in 2005 to meet demand in the Middle-East and then in Perth, Western Australia in 2009 to provide a base for the Asia-Pacific region. The group specialises in providing staff and contractors in the following categories: •
Drilling & Completion
•
Well Services
•
Pipeline & Process
•
Engineering
•
Wireline
As one of the industry’s leading recruitment agencies, OPS Group prides itself on being dedicated to recruiting the best professionals in the industry for clients. Over 26 years, OPS Group has built an experienced team of recruitment experts and industry professionals who can provide experienced personnel for both contract and permanent positions. The company uses a market-leading database which uses live time updating to ensure that a wide range of search options are available. OPS Group also provides bespoke and CPD accredited training for clients and candidates. The company places high value on quality theoretical and practical industry training courses for allow candidates to develop their skill sets and apply these worldwide. Additionally, OPS Group has an extremely successful track record with clients, implementing effective responses to specific project requirements. This can include taking care of all travel arrangements to providing payroll services. OPS Group endeavour to deliver exceptional services to both clients and candidates across the world.
Management: Steve Pryor, Managing Director, Iain Grant, Operations Director, Bethan Johns, Business Manager, Martin Lees, General Manager, André Nell, Finance Manager
Website: www.opsgrp.com
BAKER HUGHES AUSTRALIA
E X P L O R AT I O N
The Peace Bridge was built to connect southern downtown Calgary to the northern community of Sunnyside.
We collaborate with customers to jointly develop technology for specific industry needs at regional technology centers. Engineers and scientists at our product centers work on next-generation products and services for drilling and evaluation, completions and production, and fluids and chemicals. At Baker Hughes, we are looking forward to the next 100 years of working side by side with our customers to continue expanding the limits of oil, gas and alternative
energy drilling, completion and production through innovation problem solving. Ground-Breaking Inventions That Revolutionized The Petroleum Industry For more than a century, innovation has been part of our DNA. Baker Hughes was formed in 1987 with the merger of Baker International and Hughes Tool Company - both founded over 100 years ago when R.C. Baker and Howard Hughes w w w. b a k e r h u g h e s . c o m
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BAKER HUGHES AUSTRALIA
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“We continue our commitment to research and development in world-class technology and education centers.” conceived ground-breaking inventions that revolutionized the fledging petroleum era. Since those earliest advancements, we’ve never stopped searching for solutions to conquer the next frontier. In 1907, Reuben C. Baker developed a casing shoe that modernized cable tool drilling. In 1909, Howard R. Hughes, Sr.
introduced the first roller cutter bit that dramatically improved the rotary drilling process. Over the ensuing eight decades, Baker International and Hughes Tool Company continued to lead the industry with innovative products in well completions, drilling tools and related services. During its history, Baker Hughes
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Members from the Baker Hughes young professionals organization.
has acquired and integrated numerous oilfield pioneers including: Brown Oil Tools, CTC, EDECO, and Elder Oil Tools (completions); Milchem and Newpark (drilling fluids); EXLOG (mud logging); Eastman Christensen and Drilex (directional drilling and diamond drill bits); Teleco (measurement while drilling); Tri-State and Wilson (fishing tools and services); Centrilift (artificial lift); Aquaness, Chemlink and Petrolite (specialty chemicals); Western Atlas (seismic exploration, well logging).
BAKER HUGHES AUSTRALIA
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Company Information INDUSTRY
Exploration HEADQUARTERS
Huston, Texas FOUNDED
1987 EMPLOYEES
700
Today, we are organized in four regions and 25 geomarkets where local teams work to understand customer needs and coordinate delivery of reliable, practical solutions that include the right Baker Hughes technologies for every project. The Baker Hughes regions are: North America; Latin America; Europe, Africa, Russia Caspian, and Middle East and Asia Pacific. Centers of Excellence We continue our commitment to research and development in world-class technology and education centers. Our technology and trained workforce ensure you extract more hydrocarbons from mature fields and discover new resources in frontier areas.
REVENUE
$200 Million PRODUCTS/ SERVICES
A top-tier oilfield service company with a century-long track record, Baker Hughes delivers solutions that help oil and gas operators make the most of their reservoirs.
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Mitchell Services L
“Our People, Your succ
Mitchell Services continues to build on strong as leading provider of global exploration drillin Written by: Andrew Rossillo Produced by: Wayne Masciotro
Limited:
ccess�
g values to maintain it’s position ng services. 47
MITCHELL SERVICES LIMITED
Drilling Rigs
M
itchell traces its history to the early days of Australia’s natural resources boom in the 1970s. Since their first project in North Queensland, the company has grown to encompass operations around the world, including in Africa, the Americas and the Asia-Pacific. This highlights the impressive growth of the company, originating in 1969 with Peter and Deidre Mitchell incorporating Mitchell Drilling and commencing operations with just a single drill rig. Having been extremely successful in the resource industry, the Mitchell Family made 48
December 2014
a decision to continue to invest in companies and technologies that create value and act as a bridge to a sustainable world. This decision was made from the belief that a realistic difference can be made and the family can contribute via their investments to the community, industry and the environment. Drill Torque Reverse Merger Among their most strategic investments was the decision to re-enter the Australian market through the reverse merger with Drill Torque. Established in 1992, Drill Torque has been working for junior explorers and mining
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Men In Field
companies. Whilst predominantly focused on Queensland’s northern minerals province, the company has completed projects all over Australia and Papua New Guinea and listed on the Australian Stock Exchange in 2011. Mitchell Services Limited evolved from the merger of these two businesses which each specialised in various segments of the drilling market. “Upon merging with Drill Torque, the company was renamed as Mitchell Services (ASX:MSV). As part of the transaction, the Mitchell management team were integrated,” explains Mitchell
Services’ Chief Executive Officer Andrew Elf. “After transaction completion, we had to turn the business around as it was greenfield, gold and copper focused and run down due to the downturn in the mining services sector. Mitchell has typically worked with large “Tier 1” companies in addition to greenfield exploration companies. What we did was input all the Mitchell systems, structures and procedures of a forty plus year old company. We committed strong resources to refocus and rebuild the business to position it for future growth.
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g n i h c r a e S ality Exploration Consumables? for qu We supply quality, proven products sourced from reputable suppliers world-wide – with full backup services on all items sold.
• Blast Hole • Waterwell • Geothermal • Exploration • Construction • Environmental Suppliers of Hammer & Hammer Bits 3˝-12˝, AMC Drilling Fluids, Fang PDC Bits, Diamond Core Bits, Rig Consumables, Geological Supplies, PVC & Steel Casings - all diameters. Head Office & Main Warehouse: Unit 2, 57 Alexandra Street, North Rockhampton, QLD 4701
T: (07) 4927 7276 • M: 0407 636 818 • E: admin@abcrocky.com.au Brisbane Warehouse: 200 Cobalt Street, Carole Park, QLD 4300
T: (07) 3271 1440 • E: Brisbanesales@abcrocky.com.au Mount Isa Warehouse: 19 Duke Street, Mount Isa, QLD 4825
T: (07) 4743 1644 • E: mtisasales@abcrocky.com.au
www.abcrocky.com.au
Delivery available via Crane truck
ABC Products is an authorised agent for drilling and mining products from:
MITCHELL SERVICES LIMITED “The reverse merger with Drill Torque was the first step in rebuilding the company and repositioning the business to work with major ‘Tier 1’ mining companies. We put the necessary systems in place and obtained the required ISO certifications,” says Mr. Elf. “The company has won $30 million worth of contracts with Tier 1 clients since bedding down the Drill Torque merger late last year at a time when many competitors were struggling.” Since 1969, the Mitchell Group has successfully developed and invested in companies that innovate, deliver and do things in ‘a better way’. Among the Group’s competitive advantages, Mr. Elf states, “We are always committed to finding a better way. We’re an ASX listed company that’s been in this industry since 1969. We’re a nimble team that can make things happen safely and efficiently for our clients.” Mr. Elf has over 15 years finance, commercial and operational experience working in various senior roles both in Australia and overseas and was a Financial
E X P L O R AT I O N
Director in Indonesia for a top 100 ASX listed company before transitioning into the drilling industry in early 2004. Mr. Elf continues to combine his rich experience with that of Mitchell Services’ vast experience across different commodities and market sectors internationally, reflecting their position as a leading provider of safe, efficient and proactive drilling services. Their core areas of operation include coal exploration drilling, mineral exploration drilling, mine services & large diameter drilling, coal seam gas & shale gas drilling, coal mine methane drainage, directional drilling and wireline services. The Company has adopted a diversified approach to business development and believes the most significant opportunities are likely to emanate from the coal and precious metals sectors. Acquisition of Tom Browne Drilling The acquisition of Tom Browne Drilling marks one of the most significant moves the company has made in realising its vision, and
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MITCHELL SERVICES LIMITED
Drilling Rigs
further promotes the company’s plans for continued expansion. In August of this year, Mitchell Services Limited entered into an agreement to acquire the drilling rigs and associated assets from the receivers of Tom
Browne Drilling Services Pty Ltd (Tom Browne) for $9.5 million, positioning the company for continued growth as a leading provider of drilling services within Central and Eastern Australia. The Tom Browne assets include
E X P L O R AT I O N
Company Information INDUSTRY
Exploration HEADQUARTERS
Seventeen Mile Rocks, Australia FOUNDED
1969 EMPLOYEES
100 REVENUE
$30 Million PRODUCTS/ SERVICES
29 drilling rigs and ancillary equipment. “With the $20.2 million equity raising and the acquisition of the Tom Browne assets, our rig fleet doubled in size from 29 to 58 rigs. That certainly makes us one of the largest providers of drilling services in Australia,� explains Mr. Elf.
Mitchell Services Limited (ASX code: MSV) has a proud history dating back to 1969 and a strong record of delivering safe, efficient and proactive drilling services to the global exploration, mining and energy industries. We are committed to the highest levels of service and safety, with a blue chip client base ranging from major mining and energy houses to governments and private explorers.
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Condor Energy:
Condor Energy Brings Lo Australian Fracture Simul Made in Australia for Australia Written by: Ian Hanner Produced by: Wayne Masciotro
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CONDOR ENERGY
A
new player in the Australian oil and gas sector, Condor Energy is bringing a new perspective and traditional values to a blossoming industry. For years, many have known of Australia’s vast natural gas wealth, 56
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but a new wave of interest, spurred on by advances in shale and coal seam gas extraction, has brought renewed focus to the country. With a demand in place, Condor Energy was optimistically incorporated at the end of 2011 as an ambitious fracture
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stimulation company—the first to be formed in Australia for Australia, according to Energy News. After the company’s birth in 2011, founders Christian Lange and Geoff Edwards spent the next two years hammering down a solid business plan and securing capital. Finally, in February 2014, with a contract for the Beach Energy led NTNG JV inked, Condor ordered its fracture stimulation and coiled tubing equipment. “There were just the two of us to begin with,” said Managing Director and CEO Christian Lange. “Geoff concentrated on the finance modeling and I concentrated on the strategic and business plan, as well as working with clients on upcoming schedules.” Today, Condor offers services including well cementing, fracture stimulation, nitrogen pumping, coiled tubing and more. In July, Condor began to mobilise its equipment for the fracture stimulation and coiled tubing for Beach Energy’s unconventional operations. “We’ve got a four well fracture stimulation campaign in the Cooper Basin for Beach Energy and its joint venture partners,” Lange said.
“And then following that, we’ll have a second campaign in southern Australia, again with Beach Energy and its joint venture partners.” Lange says that apart from being the only Australian company in the sector, Condor’s competitive edge comes from a variety of factors. He told Energy News that Condor aims to offer a higher standard of service quality. This is an area that he believes Condor is able to make a fundamental difference. “Putting ‘service’ back into service quality is our primary objective”. To that end, Condor has customized U.S.-made equipment for Australian conditions. This equipment was specifically constructed to handle the “severe duty conditions” found in the Nappamerri Trough, the operations area within the Cooper Basin. “We have bought in 40,000 horsepower so it will be the largest single frac spread in Australia,” Lange said to Energy News. “Halliburton has the largest amount of total horsepower in the country, but we will have the largest single spread. We have certain redundancies built into the spread so when the inevitable failure w w w. c o n d o r e n e r g y. c o m . a u
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CONDOR ENERGY
COMPLETE PROJECT MANAGEMENT SERVICE FOR THE OIL & GAS INDUSTRY
Stirling Transport has been proudly serving its clients in the Cooper Basin for over 25 years by providing efficient and economical transportation services in a safe, timely and courteous manner.
• • • • •
Overdimensional Haulage General Freight Oil & Gas Site Services Heavy Haulage Pilot Services
0458 535 808 or 0145 350 609 5 Hookina Road, Burton SA 5110 PO Box 113, Blyth SA 5462 Fax: (08) 8844 5192 Email: paul@stirlingtpt.com.au www.stirlingtpt.com.au
AUSTRALIA WIDE SERVICE AS REQUIRED
occurs we will be able to respond to that pretty quickly without experiencing any material down time.” But more than that, Lange told Exploration World another factor comes into play. “The first thing is our people. I think that’s where we really make a difference,” he said. “I don’t believe there’s a lot of differentiation in the equipment portfolios of various companies in this space. So at the end of the day, it really comes down to people and their performance and
E X P L O R AT I O N
attitude to delivering real service quality. We’ve spent three years on planning and I think that’s paying off because to-date we’ve most certainly delivered on our promise of improved service quality in the sector.” According to Lange, employees come first at Condor Energy with managers and executives trying to foster an “old school” approach to company culture that places emphasis on making the business feel like a family. He said that at Condor, employees are seen as, and treated as, people first. They are key to the business, and an integral part of the companies success. This emphasis on the company’s people, while in line with the founders’ values, is also good for business. The school of thought says that if you take care of employees, they’ll take care of the client. Lange says this is paying off. “I think our people have gained a reputation for being best in the business. And by extension, Condor has earned a reputation of delivering on its service quality promise,” he said. He added, “We set out six months ago to build a corporate culture which was based on respect for each other above all else and having a group of individuals that were seen as more than just employees. We wanted to have high levels of collaboration [and] engagement between our employees and each other. I have an enormous sense of pride in seeing how they’ve come together and how they’ve operated.”
Company Information INDUSTRY
Exploration World HEADQUARTERS
Mt Pleasant, Australia FOUNDED
2011 EMPLOYEES
63 PRODUCTS/ SERVICES Condor Energy Services is a major partner of the Australian oil & gas industry. We choose the term ‘partner’ over ‘supplier’, as we provide our suite of well construction, optimization and intervention services with a view to maximizing our clients’ outcomes. In short, our aim is to provide technical engineering as well as services around drilling and the reservoir. Each of our experienced staff members takes a vested interest in the performance and efficiency of our clients. Our management team alone has over 100 years combined industry experience working with the world’s largest oilfield service companies. This depth of experience ensures we are able to optimize results and provide the utmost value for money. Committed to quality, we carefully select equipment that is of a high specification and possesses the latest innovation and technology. In addition, all equipment must be proven to withstand the harsh environments in which we operate. We are proud of the reputation that we have developed, and look forward to continuing to partner with new and existing clients, facilitating the safe and efficient development of energy resources.
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