Sapuraacergy

COMPANY PROFILE

2014

SapuraAcergy

+60 3-8659 8288 | www.sapuraacergy.com

Super SapuraAcergy succeed in Malaysia Editorial: Christian Jordan

The Gumusut-Kakap oil field, 120km off Sabah, Malaysia, holds great potential for the country’s energy mix. However, the field sits 1200m below the surface; hence deep-water expertise is required and deep-water is where SapuraAcergy comes into its own‌

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Back in March 2009, SapuraAcergy, a leading engineering and construction contractor committed to the regional offshore oil and gas industry, was awarded a contract in connection with the development of the deep-water Gumusut-Kakap field in blocks J and K, 120km off the Sabah coast in Malaysia.

The contract was reportedly worth some $800 million and included engineering, procurement, transportation and installation of an oil export pipeline and catenary riser,

including the shore approach; flowlines, jumpers, steel catenary risers (SCRs), pipeline end terminations (PLET) and flowline inline structures (SLEDs); and mooring wires, chains and piles for a semisubmersible Floating Production System (FPS) including towing to the offshore location and installation thereof.

Projects of this kind are becoming more and more important for Malaysia as the country looks to develop its deep-water industry and resources.

The Gumusut-Kakap field is operated by Sabah Shell Petroleum Company Limited (SSPC), which owns a 33% stake, in partnership with ConocoPhilips Sabah (33%), Petronas Carigali (20%) and Murphy Oil (14%).

Because of the location of the Gumusut-Kakap field, in the South China Sea, approximately 1200m below the surface, a deep-water specialist was required.

Enter SapuraAcergy - a joint venture company with vast experience in deep-water projects.

SapuraAcergy is a 50/50 joint venture between SapuraKencana Petroleum Bhd, one of the world’s largest integrated oil and gas service providers, and Subsea 7, a global leader in

seabedto-surface engineering and construction.

According to Shell, development drilling in the South China Sea began in January 2008 and early production was realised in November 2012.

While early production got underway, construction of the Floating Production System (FPS) was underway at the Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) yard in Pasir Gudang, Johor.

Before completion of the FPS, early production, an interim measure, bought in 25,000 barrels of oil each day.

In June 2013, semisubmersible production facility

was secured to the seabed and in September of the same year, the final riser to carry oil and gas to the platform was hooked up.

Jean Cahuzac, Chief Executive Officer, Acergy said, “The Gumusut-Kakap Project represents an important development for the deepwater market in Malaysia and for our Joint Venture. Building upon the recent operational successes of the Sapura 3000, we are confident that this high specification asset, will perform strongly and enable our Joint Venture to deliver for us and our

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“WHENEVER IT IS HUMANLY POSSIBLE, WE MAKE IT HAPPEN FOR YOU” Venturing into all possibilities, from Onshore to Offshore

The magic key to Malaysia’s OIL & GAS adventure

Let’s talk business:

email: hsaphq@hsapsb.com | Tel: +6 087 415536 / 413661 | Fax: +6 087 415539

client.”

The client, Shell, has been operating in the region for more than 120 years but GumusutKakap is the company’s first Malaysian deepwater development.

FPS Floating production systems are becoming more and more popular in the offshore oil and gas industry and as the market develops, these mega pieces of technology are becoming more and more advanced.

An FPS is essentially a floating vessel used for the processing of hydrocarbons and for storage of oil. An FPS vessel is designed to receive hydrocarbons produced from nearby platforms or subsea template, process them, and store oil until it can be offloaded onto a tanker or, less frequently,

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“The Gumusut-Kakap Project represents an important development for the deepwater market in Malaysia and for our Joint Venture.

Building upon the recent operational successes of the Sapura 3000, we are confident that this high specification asset, will perform strongly and enable our Joint Venture to deliver for us and our client”

transported through a pipeline.

FPSs are preferred in frontier offshore regions as they are easy to install, and do not require a local pipeline infrastructure to export oil.

The semi-FPS for the Gumusut-Kakap field left its home in Johor for sea trials and inclination tests in Desaru waters on 24th May 2013 and was classed as the largest facility of its kind in the world to have been fully built and integrated on land. When it finally arrived at the field in June, it had travelled over 1400km and mooring was completed on June 24th.

During installation and commissioning, the semi-FPS was anchored in water depths of about 1,200 meters (3,937 feet) and it has been designed to remain on station in the field for 30 years. Importantly, the FPS

SapuraAcergy also has the potential to act as a hub for other possible sub-sea facilities.

President and Group CEO of PETRONAS, Tan Sri Dato’ Shamsul Azhar Abbas paid tribute to all of the partners involved in the development and delivery of the FPS and said: “This project and its achievement is attributed to the collaborative effort of Petronas, Shell, Murphy, ConocoPhilips as well as Petronas Carigali, supported by the capability and technical know-how of MISC Bhd and MMHE.” President and CEO of MISC Bhd and Chairman of MHB, Datuk Nasarudin Md Idris highlighted the fact that the regions capabilities are continually growing saying this project is testament to that: “The

completion of this project is a testimony to MISC and MMHE’s growing capabilities in the engineering and construction of floating production facilities.”

The FPS itself weighs more than 40,000 tons and Shell says that the combined weight of the production system is more than 1200 Boeing 737s.

GUMUSUT-KAKAP Because of the depths at which the Gumusut-Kakap field is located, its development was particularly challenging hence, the project was broken into three phases – 2010, 2011 and 2013. During each of these periods, different tasks were carried out including research and surveying, fabrication and installations.

The Gumusut and Kakap

fields, which were originally operated individually, are vitally important for Malaysian development. Crude oil output from maturing fields is on the decline and is expected to last for only the next 20 years. Undiscovered resources in Malaysia are estimated to amount to ten billion barrels of oil, of which 65% are deepwater discoveries.

Focus on deepwater projects is therefore increasing.

Away from Gumusut-Kakap and SapuraAcergy, the only deepwater project to have been brought on stream to date in Malaysia is the Kikeh project in 2007.

Kikeh is located in 1341 meters (4400 feet) of water offshore Sabah, northwest of the island of Labuan, in the southern

LABUAN SHIPYARD & ENGINEERING

SDN BHD (710954-H) OUR CORE BUSINESS Oil & Gas Engineering & Fabrication Shipbuilding Ship Repair Naval Craft Building & MRO OUR MAIN FACILITIES

Covered workshop ratio of 1.2:2.0 Syncrolift 140 M x 28 M 1,000 metres of wharf space 12,000 tonnes skidway and quay for loadout 50,000 sq.m. of open fabrication space 28,000 sq.m. of covered fabrication space 15,000 sq.m. of covered storage space Cranes upto 320 tonnes capacity Shotblasting plant for treatment of steels Hydraulic press with 500 tonnes of pressure and lifting capacity of 15 tonnes Tank Coating Facilities

LABUAN YARD KM9, Jalan Ranca-Ranca, P. O. Box 81210, 87031 Federal Territory of Labuan, Malaysia | Tel: +6087 451 888 | Fax: +6087 451 777 KL OFFICE Level 12, Menara Getah Asli, 148 Jalan Ampang, 50450 Kuala Lumpur, Malaysia | Tel: +603 2161 8000 | Fax: +603 2161 8510 KK OFFICE Lot #3, (DBKK A-1-2) Block A, 1st floor, Alamesra Plaza Utama, Sulaman Coastal Highway, 88400, Kota Kinabalu, Sabah. | Tel: +6088 485 870 | Fax: +6088 485 872

Email: enquiry@labuanship.com

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part of Block K. Considered a fast-paced project, field development was completed in five years following the initial discovery in July 2002 and production started in August 2007.

Murphy Oil’s Asian subsidiary serves as the operator of Kikeh with 80% interest in the field.

Petronas, the state-owned Malaysian petroleum company, holds the remaining 20%.

Production commenced from Kikeh with an initial daily production rate of 40,000 bopd. A considerable amount of development drilling was conducted by the Ocean Rover semisub from 2006 to 2008.

These wells were placed on stream throughout this time period, hiking daily production to 120,000 bopd.

The Gumusut field was discovered by the Gumusut-1B well, drilled in 2003 in Block J. The well was drilled by a semisubmersible rig, Atwood Falcon. The Kakap field was discovered by Murphy Oil in 2004 in Block K. The fields were appraised by four wells - Gumusut-2, Gumusut-3, Kakap-1 and Kakap-2. The wells were drilled between 2003 and 2004.

The recoverable reserves of Gumusut-Kakap project are estimated at 300 to 500 million barrels of oil equivalent.

The field is being developed using 19 subsea wells with oil exported via a pipeline to the new oil and gas terminal, under construction in Kimanis, Sabah.

SAPURA 3000 One of the most vital components of the entire development at Gumusut-Kakap PAGE 6

was SapuraAcergy’s Sapura 3000, a class-leading deepwater heavy lift and pipelay vessel.

This impressive piece of equipment is 151 meters long and 38 meters wide. It uses a 3000 ton main crane and is supported by a 240t S-lay system and 400t J-lay system.

The vessel is able to house up

of this kind and the company calls it ‘the most advanced and versatile vessel for conventional and deepwater construction activities in the region’.

For Gumusut-Kakap, the Sapura 3000 was used to install all the subsea facilities including the pipelines using its S-lay and J-lay capabilities. The vessel also played a part in the wet storing and recovery of the SCRs of which six of ten were stored on the seabed prior to the arrival of the FPS. When the FPS was moored, the SCRs were recovered from the seabed, then cross hauled under the FPS and hooked up.

The Sapura 3000 recently saw investments intended to further improve safety when a new articular gangway system was installed for the safe transfer of personnel to barges and an initiative was put in place to enhance the lifeboat capability.

J-LAYING When laying subsea pipelines, there are many methods that are widely used but two of the most popular are J-lay and S-lay.

For both of these methods a pipelaying vessel is needed and at Gumusut-Kakap, this is where the Sapura 3000 came into its own.

W ith a J-lay system, pipe stalks - consisting of usually up to six pipes - are upended and welded to the seagoing pipe in a near vertical ramp.

The ramp angle is adjusted so

to 330 people and has a deck areas of 3275m². Importantly, the Sapura 3000 also boasts two workclass remotely operated underwater vehicles (ROV).

Using six Wartsila 32 4000kw engines, the Sapura 3000 is the perfect vessel for deployments

that it is in line with the pipe catenary hanging to the seabed to keep bending of the pipe to a minimum. This method is very suitable for deep-water pipelaying because the pipe leaves the vessel and lay system in an almost vertical position and

“SapuraAcergy is committed to zero tolerance of injury to personnel, damage to assets and threats to the environment.

In all our projects, we ensure and emphasise the highest standards and safe project delivery. This is supported by a ‘hands on’ management approach, and people who are dutybound to embrace and comply with the HSEQ standards”

SapuraAcergy

the pipeline is only bent once during installation at the seabed.

SapuraAcergy’s J-laying experience and expertise was one of the reasons that the company was awarded the contract.

So why choose the J-lay method, apart from its suitability to deep-water projects? As you can imagine, safety was the first concern.

SAFE AND SOUND Safety was a key element across the entire Gumusut-Kakap project and of course, safety is an issue taken very seriously by SapuraAcergy.

The company says: “HSE Performance throughout the project was given the highest attention. This applied not only to the Sapura 3000, but to all suppliers, fabrication sites and support vessels. The Sapura 3000 had an excellent record of zero lost time injuries throughout the 460 offshore days. In addition, the safety performance was recognised by Shell, with a prestigious award for HSE excellence being received in 2013.”

This is not an award that is claimed easily as Shell’s focus on HSE is second to none.

Shell Malaysia’s Chairman, Iain Lo said recently: “As a responsible operator and partner, Shell relentlessly pursues the goal of zero harm to people and zero significant incidents. Achieving this is a jour ney and we call it Goal Zero.”

And this wasn’t the first time the company had been recognised for excellence in HSE. In October 2010, the

Sapura 3000 celebrated the achievement of 1.5 million manhours (564 days) without any lost time injuries.

SapuraAcergy says that it ‘goes the extra mile’ when it comes to the safety and security of its people. The company says of its approach to HSE: “SapuraAcergy is committed to zero tolerance of injury to personnel, damage to assets and threats to the environment.

In all our projects, we ensure and emphasise the highest standards and safe project delivery. This is supported

by a ‘hands on’ management approach, and people who are duty-bound to embrace and comply with the HSEQ standards.

“Our HSEQ system is certified in accordance with the Inter national Standards of OHSAS 18001:2007 for Occupational Health and Safety and is based on ISO 14001 for Environmental Management. SapuraAcergy is the first deepwater c o n st r u c t io n c o n t r a c t o r in M a la y s ia t o b e a c c re d it e d w it h t h e I SO 9 0 0 1 : 2 0 0 8 f o r Q u a lit y

PHOTO: TILLMANN FRANZEN

FOR JAMES, SAFETY DOESN’T HAPPEN BY ACCIDENT.

Safety matters. Especially when you’re developing the regulatory framework for a country’s entire oil and gas industry.

James Brown and his team at DNV GL are working closely with the authorities in Brunei to establish robust regulations that meet complex challenges. Our expertise covers the entire oil and gas value chain, drawing upon deep international experience and local expertise to provide technical advice that makes a real difference. We take a broader view on the sector and work relentlessly to ensure that every part we play impacts upon the bigger picture.

SAFER, SMARTER, GREENER

DNV and GL Noble Denton have joined forces to become the leading technical advisor to the oil and gas industry. As DNV GL, we help companies become safer, smarter and greener.

Among our 16,000 employees, 5,500 experts are dedicated to solving complex safety, reliability and performance challenges in oil and gas projects and operations.

We play our part in the bigger picture by taking a broader view.

Discover how at dnvgl.com

Powertium Engineering Sdn. Bhd. (“PESB”) was incorporated in 2001. The company is licensed by Petronas to supply goods and services in the oil & gas industry for both the up stream and down stream sector.

VILMAR is the primary production site of Groupe Genoyer, world leader in piping equipment for liquid transport: oil, gas, water and petrochemical products.

GVM specialises in CNC Turning, Boring, Drilling, Turning and Milling.

DeepFlex Inc. designs, manufactures, and deploys premium composite flexible pipe for some of the world’s most challenging subsea oil and gas production environments. We are the only manufacturer of unbonded non-metallic pipe for deepwater application. Our intrinsic product advantages give DeepFlex unique and exceptional market potential.

If you have any further enquiries, do not hesitate to contact: POWERTIUM ENGINEERING SDN BHD A 32-6, Level 32, Tower A, No. 5, Jalan Bangsar Utama 1, 59000 Kuala Lumpur, MALAYSIA Tel: +6 03 2288 1622 Fax: +6 03 2288 1722 Email: sales@powertium.com

Website: www.powertium.com

Management and the best p r a c t ic e s t a n d a rd f o r Se c u r it y St a n d a rd s . “ We w e re a w a rd e d t h e d o c u m e n t o f c o m p lia n c e ; t h e I n t e r n a t io n a l Sa f e t y M a n a g e m e n t C o d e ( I SM ) , f o r t h e s a f e o p e r a t io n s o f s h ip s a n d f o r p o llu t io n p re v e n t io n .

O u r v e s s e l, t h e Sa p u r a 3 0 0 0 , h a s re c e n t ly re c e iv e d a c k n o w le d g m e n t f ro m t h e N a t io n a l O ff s h o re Pe t ro le u m Sa f e t y Au t h o r it y ( N O PSA) o f Au s t r a lia f o r t h e Ve s s e l Sa f e t y C a s e ( V SC ) f o r h e a v y lif t in g , w h ic h is b e in g e x t e n d e d t o p ip e la y in g a n d d iv in g o p e r a t io n s . ” Sa f e t y is c le a r ly a c lo s e ly h e ld c o re b u s in e s s v a lu e a n d t h is is o n e o f t h e re a s o n s t h a t t h e c o m p a n y is re c o g n is e d a s a n in d u s t r y le a d e r.

A JOB WELL DONE Considering the difficulties and

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challenges that operating in such a remote and deep area presented, it seems that so far, SapuraAcergy has navigated the project fantastically well.

Apart from safety, another of the big successes has been the effective management of people.

The supply chain on this project was enormous and involved international integration, again something which the company has managed to achieve with great success.

A project team of almost 200 personnel was assembled in our Kuala Lumpur office. The team managed the international supply chain, engineering and analysis, fabrication, risk and safety assessments, planning, testing and development of the installation procedures and all of this effort led to a safe and efficient operation, both onshore and offshore.

So what for the future?

SapuraAcergy and its Sapura 3000 have ongoing business in Vietnam and Australia and more work to do for the Gumusut-Kakap project so it is unlikely that there will be any slowdown in operations.

In its entirety, the GumusutKakap project has been one of great importance to all companies involved, and to Malaysia and the surrounding region. New standards of excellence have been installed, technical capabilities have been improved, new operating depths have been achieved, international safety standards have been met, and local people have been involved with a project which is set to dramatically impact on the country’s energy needs.

It was always clear that this field was set to be important, right from discovery back in 2003.

Thanks in part to SapuraAcergy, we will now begin to realise exactly how important

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