IPLOCA Newsletter 40

NUMBER

40

THE IPLOCA NEWSLETTER

© IPLOCA 2009 Onshore Pipelines - The Road to Success, 1st Edition

IPLOCA

CONTENTS:

Road to Success

The

September 2009, 1st Edition

A New IPLOCA Publication

Onshore Pipelines

The Road to Success page 13

Onshore Pipelines

The Road to Success

SEPTEMBER 2009

IPLOCA September 2009 - 1st Edition

Letter from the President page 3 News from Geneva page 4 Member News page 11 Convention update page 14 WITH NEWS FROM: THE INDUSTRY, MEMBERSHIP, ALLIED & SISTER ASSOCIATIONS

The following is the IPLOCA Mission for 2009 and beyond: To provide value to members through a forum for sharing ideas, engaging the industry and its stakeholders, facilitating business opportunities and promoting the highest standards in the pipeline industry.

CONTENTS Letter from the President

3

News from Geneva

4

Board Meeting Update

5

Training Committee

7

Health, Safety & Environmental Awareness

8

IPLOCA Health & Safety Award, sponsored by Chevron

9

Membership

10

Member News

11

On the Road to Success

13

Convention Update

14

IPLOCA New Technologies Award, sponsored by BP

16

Upcoming Conferences

17

Elections to the Board of Directors

18

IPLOCA Board of Directors

19

IPLOCA Secretariat

IPLOCA Newsletter

International Pipeline & Offshore

Editor Elizabeth Spalding

Contractors Association

Lay-out Peter Schoonenberg

Chemin de Blandonnet 2

Advertising p.schoonenberg@pedemex.nl

1214 Vernier/Geneva

Comments & copy elizabeth.spalding@iploca.com

Switzerland

reprinted 09-09-2009 Š IPLOCA

Telephone +41 22 306 02 30 Fax +41 22 306 02 39

Cover photo

E-mail info@iploca.com

Courtesy of Denso GmbH

Website www.iploca.com IPLOCA Yearbook Advertising p.schoonenberg@pedemex.nl Listing changes listing@iploca-yearbook.com

2

THE IPLOCA NEWSLETTER

Letter from the President I hope that this newsletter will reach you before you pack your bags for San Francisco. Everything is in place and we are ready for another highly successful convention in this wonderful location.

We again thank our sponsors for their continuous support for this great event.

This extremely busy year for IPLOCA has passed very quickly. Our Members have fully supported IPLOCA by participating extensively in our Regional Meetings and by providing the key experts for our committees.

To provide just one striking example, more than 40 companies, including some of our clients, and more than 110 persons in total, have participated in the various working groups of our Novel Construction Initiative.

This support for Novel Construction has ensured the on-time production of its first deliverable in San Francisco where “The Road to Success” will be presented. The Novel Construction Initiative will continue next year and is a great example of what can be achieved using IPLOCA as a forum for valuable initiatives relevant to our pipeline industry.

The Training Committee has also seen significant developments in the last year and is progressing quickly towards delivering high-value information to our Members.

Leonid Bokhanovskiy of Stroytransgaz has played an active role in the promotion of this committee and recently hosted a meeting of the Training steering group in Moscow.

HSE is always at the top of IPLOCA’s priorities and in addition to their committee activities, the members of the HSE Committee have also actively participated in the Novel Construction Initiative.

It has been a great honour and a pleasure to serve as your President during this 2008/ 2009 term. I wish to thank all the board members and the staff of the IPLOCA Secretariat.

Gilberte and I wish you the best and hope to see you in San Francisco.

Bruno de La Roussière Bruno.delaroussière@entrepose-contracting.com

NUMBER 40 SEPTEMBER 2009

3

below you can find a list of the presentations for the Open General Meetings. We are pleased to be able to offer this broad range of topics from some excellent speakers:

In Search of Excellence in Pipeline Projects Thursday, 9:10 – 9:40 am, Fairmont Terrace Room Leslie Link, Manager, IPA Refining, Petrochemicals, Pipelines & Terminals Billions of capital dollars each year are being spent globally on pipeline projects. Unfortunately, history suggests that larger projects are at increased risk of poor cost and schedule performance. IPA has conducted extensive research into the functioning of capital projects and Summertime in Geneva.

project systems to understand the key drivers of project performance and has identified key industry Best Practices that drive excellent pipeline project performance. This presentation will summarize these Best Practices and share findings on how to avoid poor project performance.

Perspectives on North America Pipeline Projects in Coming Years Thursday, 10:30 – 11:00 am, Fairmont Terrace Room Donald (Don) Wishart, Executive Vice-President, Operations & Engineering, TransCanada Supply and demand dynamics in North America for both oil and natural gas have changed significantly Caroline Green, Convention Manager and Sarah Junod,

in recent years. Changes in oil supply will be dictated

Accounting Manager in the Geneva Secretariat office.

by developments associated with Canadian heavy oil

NEWS FROM GENEVA

production while natural gas supply dynamics will be predominantly influenced by shale gas and northern frontier gas developments. Demand for both commodities

It seems that most people are on vacation – judging by

will be influenced by marginal production costs and

the weekend gridlock the last few weeks on major routes

by environmental legislations which create substantial

heading down to and back from the Mediterranean and the

demand uncertainty. Collectively, these developments

absence of people in Geneva.

should provide significant pipeline opportunities throughout North America. Mr. Wishart will offer his

The roads are so quiet during the week that the commute

perspectives on the scope of potential pipeline projects

to the IPLOCA Secretariat takes only half the usual time.

throughout North America over the next couple of decades.

But it’s time for us to finish coordinating all the last minute details for the Convention, check and double check our to-do lists, and pack the inevitable trunks of materials in preparation for our exodus to San Francisco.

The Importance of Visible Leadership Thursday, 11:00 – 11:30 am, Fairmont Terrace Room

By the time we return, schools will be back in session here

Rebecca Roberts, President, Chevron Pipe Line Company

and memories of Mediterranean holidays will be fading, along with sun tans…

Managers often think that by simply stating their expectations for a safe workplace that results will

4

In the meantime, though, to give you an idea of what

immediately follow. This discussion will address the steps

to expect on Thursday and Friday at the Convention,

that managers should take to engage their workforce

THE IPLOCA NEWSLETTER

and to visibly demonstrate their commitment to safety.

Topics will include setting priorities, defining expectations, assigning accountability, monitoring performance and taking corrective action when necessary. Also included is

BOARD MEETING UPDATE Beijing, May 2009

a discussion of balancing safety with cost and schedule constraints.

Lands of Sakhalin Friday, 10:15 – 10:45 am, Fairmont Terrace Room Daslav Brkic, Vice President Business & Technology Development, BU Onshore, Saipem and Lucio Linassi, Russia Area Manager & Sakhalin II Project Director, Saipem The Sakhalin II project on the remote Russian island in far eastern Siberia has been one of the largest and most challenging integrated projects in the history of oil and gas exploitation: tens of billions of US dollars of overall investment, numerous design and technological challenges, tens of thousands of construction workers employed in a harsh subarctic environment to build offshore platforms, offshore and onshore pipelines, oil and gas processing facilities, an oil export terminal and Russia’s first plant to liquefy and export natural gas.

The project involved 600,000 engineering man-hours performed in four operating centres and almost 100 million site construction man-hours. Following a brief introduction, a movie will be shown to visually illustrate the project challenges.

No visit to Beijing is complete without a stop at Badaling and the Great Wall. Not for the faint of heart, especially in the extremely high temperature, it’s a steep climb. Margherita Jannuzzi

The Role of Engineers in Poverty Reduction: Challenges and Opportunities

(foreground) considers a quicker way down…

Friday, 10:45 – 11:15 am, Fairmont Terrace Room Dr. Bernard Amadei, Engineers without BordersInternational Today, an estimated 20 percent of the world’s population lacks clean water, 40 percent lacks adequate sanitation, and 20 percent lacks adequate housing. In the next two decades, almost two billion additional people are expected to populate the Earth, 95 percent of them in developing or underdeveloped countries. This growth will create unprecedented demands for energy, food, land, water, transportation, materials, waste disposal, earth moving, health care, environmental cleanup, telecommunication, and infrastructure. As we enter the first half of the 21st

Taishan Construction Machinery, an Associate Member of IPLOCA

century, the engineering profession must embrace a new

since 2007, kindly held an evening dinner for the Board Members

mission statement—to contribute to the building of a more

and their guests in Beijing, hosted by Taishan’s Chairman of the

sustainable, stable, and equitable world.

Board, Xushan Song.

NUMBER 40 SEPTEMBER 2009

5

Committees The New Technologies, Training, Health, Safety & Environment (HSE) and Strategic Development committees each met and later reported to the full board. More information about the committees is on the following pages.

Milan Meeting of IPLOCA, APIA, EPRG and PRCI Former President of CPP, Shifeng Su (in background of photo

Juan Arzuaga reported on the excellent meeting he

below) entertained IPLOCA guests at a restored traditional home

attended in Milan with EPRG, PRCI, and APIA. A mutual

in the Hutong (lanes) area of downtown Beijing, complete with

cooperation proposal was discussed in Milan with these

traditional Chinese music.

three Associations and was presented to the Board to include IPLOCA in a formal and mutually beneficial relationship with these groups. IPLOCA would have voting rights in research programmes which it has helped to fund. The major owners and operators are also involved in the work of the group and were well represented at the meeting. The group is more client-oriented than contractororiented, but is keen to receive input from the contractors.

Karl and Christine Trauner of Habau enjoy a continuation of the traditional music provided during the hors d’oeuvres.

Regional Meetings Germany - Austria Karl Trauner provided the Regional Meeting Report for

Energy Pipeline Asia 2009

the Hannover Meeting. Sixty-three percent of regional members (from Austria, Germany and part of the

IPLOCA Director and Director of AJ Lucas Group

Netherlands) were represented at the Hannover meeting

Limited, Andy Lukas spoke at Energy Pipeline Asia

which included an excellent presentation by Eon Ruhrgas

2009 on 25 June, in Beijing. His presentation, entitled

and a visit to an engineering company specialising in

“Global Oil & Gas Pipeline Construction and Pipe

underground gas storage.

Technology Trends” discussed, among other topics,

China

among interested parties, including a new cooperation

A first regional meeting was held in China on 19 May.

among the Pipeline Research Council International, the

Some difficulties were encountered due to H1N1 flu, and

European Pipeline Research Group, the International

not many Chinese contractors were able to attend, but the

Pipeline and Offshore Pipeline Contractors Association

group heard interesting presentations on the market in

and the Australian Pipeline Industry Association (APIA).

China and from Chinese suppliers.

6

the vital role of research and research cooperation

THE IPLOCA NEWSLETTER

TRAINING COMMITTEE Members Meet in Moscow

provide training in the on- and offshore pipeline industry, taking into consideration the various geographical areas -- To encourage young operational people to become

Representatives of the IPLOCA Training Committee met on

trained in the science of communication and to help

13 July in Moscow at the offices of Stroytransgaz, hosted

bridge the gap between technology and society

by Committee Chairman, Leonid Bokhanovskiy.

-- To mutually promote our jobsites as an effective platform for experience exchange, competence development and

Also attending the meeting were Vladilen Ermolin,

initial practice for young specialists and students in the

General Director of PTPS; Erhan Hersek, the HR coordinator

oil and gas construction industry.

from Tekfen; Ralf Prior, HR representative from Habau; Hans Ringers, IPLOCA Consultant; Leyla Shamuzova, Senior Specialist in Business Development, Stroytransgaz;

-- To attract clients and suppliers to support the work of the Training Committee.

-- To cooperate with educational establishments and

Karl Trauner, Second Vice-president of IPLOCA;

Academic Members of IPLOCA in developing special

Gennady Vasiliev, Head of the Department of Pipeline and

training courses and seminars for the on- and offshore

Storage Facilities Gubkin Russian State University of Oil

pipeline industry

and Gas; Valery Volodzka, Business Development Manager, Habau; and Juan Arzuaga, Executive Secretary of IPLOCA.

-- To create a sound platform for cooperation in training with the World Federation (WFPIA) to encourage the goals and targets set in the on- and offshore pipeline industry.

During the meeting members of the Steering Group were appointed, the primary objectives and a road map for the

Immediate actions

committee were discussed and roles were assigned to

-- To complete information on the well known educational

each member of the group. The committee also discussed

establishments in the world which provide training in

the involvement of the World Federation on the subject

the on- and offshore pipeline industry, and include the

of training and made plans for its next meeting and conference calls.

Mission

detailed programs -- To organize visit(s) to job sites for pipeline projects, whereby three potential project managers from a region and seven students from different universities

The mission of the committee is to assist members

have the opportunity over a two day period to become

of IPLOCA in fostering a bonding process between

acquainted with a pipeline project in a “remote or

contractors, suppliers and clients to improve pipeline project execution through training, to solve the problem of

special� area, different from where they presently work.

-- Organize a 2-3 day seminar under the guidance of

the shortage of skilled personnel, to develop competencies

IPLOCA to consolidate the communication skills of

and to contribute to the increase of new talented specialists

project managers or senior engineers operating in the

that work in the on- and offshore pipeline industry.

field of our industry on an international business.

Objectives -- To gather and provide information for members

Hans Ringers will prepare a draft programme of the proposed seminar.

-- A questionnaire will be prepared and sent to all

of IPLOCA on main educational sources, such as

members to request their input about their expectations

educational establishments and/or associations that

from the Training Committee.

Left to right: Hans Ringers, Karl Trauner, Valery Volodzka, Ralf Prior and Gennady Vasiliev discuss Training initiatives at Stroytransgaz offices in July.

NUMBER 40 SEPTEMBER 2009

7

HEALTH, SAFETY AND ENVIRONMENT (HSE)

2008 Health & Safety Statistics Submissions Received More than 80 percent of member companies have

The HSE Committee met at the Geneva Secretariat on

submitted their required Heath and Safety Statistics

8 July 2009 with the following members in attendance:

for 2008. The remaining companies are receiving a

Adam Wynne Hughes, Land and Marine (Committee

personal e-mail asking for their return or to provide an

Chairman); Dinç Senlier, Tekfen Construction and

explanation of why they are unable to do so.

Installation Co, Inc; Amir Tajik, Max Streicher; Martin Coleman, Spiecapag; Frank Green, PIH; Paul Conway,

Submission of Statistics is a requirement for all

C.A.T; Knud Petersen, Shell; Juan Arzuaga, IPLOCA

Members and a prerequisite for entry into the 2008 Health & Safety Award sponsored by Chevron.

The committee discussed a number of topics and reviewed the entries for the upcoming Health & Safety Award sponsored by Chevron. A Climate Survey to assess the

on the committee. Adam Wynne Hughes will probably

way our clients see members’ performance on HSE was

step down as Chairman during his upcoming IPLOCA

proposed and members of the committee were asked

presidential year and hopefully the incoming IPLOCA

to submit their ideas. Environmental indicators had

1st Vice President will take over this position.

previously been discussed and it was agreed to raise this matter again once the indicators are defined and listed.

Adam thanked the HSE Committee Members for helping to achieve the majority of the objectives set at the beginning

Continuity of HSE Committee Initiatives

of the year and thanked the IPLOCA Secretariat - in

Members of the HSE Committee were asked to confirm

particular Sarah Junod - for helping with all the actions to

their willingness and availability to continue to participate

improve IPLOCA’s HSE focus.

Accident breakdown

History of Man Hours 1.200

2007

1.000

14%

800

1% 3%

41%

9%

Road traffic accidents Involving fall Construction equipment Hand tool Vehicle accidents Earth collapse Others

600 400 200 0

14%

18%

3465

3466

3467

3468

3469

2003

2004

2005

2006

2007

724.382.240

499.169.602

773.954.572

1.141.168.919

2008 731.262.014

Man Hours

2008 6%

Vehicle accidents

15%

History of Statistics Returns

Lifting Operations 5% 3% 37%

Work at height / scaffolding Hand tool Involving fall Excavation / Earth collapse

11%

Confined spaces Impact with construction equipment

1% 2%

12% 6% 1%

100 90 80 70 60 50

Welding operations

40

Hazardous substances

30

Electrical work

20

Radiography

10

Road traffic accidents Others

0 3465

3466

3467

3468

3469

3470

2003

2004

2005

2006

2007

2008

90

91

66

82

86

91

Submissions

8

650.132.559

3470

THE IPLOCA NEWSLETTER

Health & Safety Award Submissions Many thanks to the following 17 companies for their submissions for the Safety Award, in alphabetical order by entrant as follows: A.Hak -- Management of Sustainable Development Dodsal Group -- Achievements on Proactive Measures with a Well Defined H&S Management System Habau Hoch und Tiefbaugesellschaft m.b.h. and PPS

IPLOCA HEALTH & SAFETY AWARD sponsored by Chevron

-- “HABAUfit” J. Ray McDermott -- Accident/Incident Investigation Program Kalpataru Power Transmission Ltd -- HSE Initiatives

The Award entries were discussed at length during the HSE Committee meeting and a balanced score card, previously distributed to the committee members with the entries, was used to determine the winners.

KazstroyService -- Uralsk Gas Pipeline Project Larsen & Toubro -- Barmer-Salaya Pipeline Project

Recognizing exemplary success in improving safety regulation and decreasing the number of accidents, the Award will be presented in San Francisco on Thursday, 17 September.

Ledcor Pipeline Ltd -- Pipelayer Conversion – Roll Over Protection Structure Man Ferrostaal -- Preparedness is an Option

The Award is given in recognition of new Health and Safety initiatives during 2008 aimed at improving the health and safety of the pipeline industry such as: -- An outstanding safety performance resulting from proactive programme/process -- A unique innovation to avoid accidents -- A creative initiative to enhance safe behaviours -- A new and well defined system, procedure or practice to foster safety improvements -- A very comprehensive health programme to protect workers from diseases at site -- Implementation of lessons learned at all levels In determing the winner, the following questions were addressed -- Does it add value?

-- Does it show management commitment?

-- Does it contitute an identifiable step forward in safety for the Industry?

-- Efficiency of the achievement

Nippon Steel Engineering -- Alert Response 2 Steps (AR2S) NPCC -- Inspection, Testing & Tagging – Portable Apparatus Pipeline Induction Heat -- Implementation of New OH&S Management System Punj Lloyd Ltd -- Loop Line from Saih Rawl-Sadad Sicim S.P.A. -- New HSE Training Center – Tengiz, Kazakhstan Spiecapag -- Best Management of Subcontractors without H&S Experience Techint Enginering and Construction Division -- Environmental, Safety & Occupational Health TL Offshore -- Together Towards HSE Excellence

-- Other additional benefits

NUMBER 40 SEPTEMBER 2009

9

MEMBERSHIP

rehabilitation of oil and gas pipelines, civil works, supply of equipment and materials.

-- Highly qualified personnel and available state-of-the-

New Members

art machinery and appliances allow the company to

SNC-Lavalin Inc, Montreal Canada SNC-Lavalin is one of the leading engineering and construction groups in the world

undertake and complete complex projects within a short time frame.

New Associate Members

and in the provision of operations and maintenance

Darby Equipment Company, Tulsa, Oklahoma, USA

services. Founded in 1911, SNC-Lavalin has been active

Darby Equipment was founded by Lee Darby in 1982

internationally for 50 years, establishing a multicultural

after he had spent more than 35 years in the Pipeline

network that spans every continent.

Construction Industry. From their facility in Tulsa,

and a major player in the ownership of infrastructure

Oklahoma, Darby manufactures 6 to 48-inch pipe bending The SNC-Lavalin companies have offices across Canada

equipment, pipe facing machines, line-up clamps, roller

and in over 35 other countries around the world and are

cradles and other pipeline supplies. A long-standing

currently working in some 100 countries. SNC-Lavalin’s

tradition of responsive customer service combined with

fields of activity cover the full spectrum relating to the

exemplary manufacturing and engineering expertise has

production, transportation, processing, upgrading and

earned Darby Equipment a reputation as a preeminent

delivery of conventional energy resources, chemicals,

equipment supplier for the pipeline industry worldwide.

petrochemicals and synthetic fuels. It maintains state-of-

www.darbyequip.com

the-art capabilities in steady state and transient hydraulic and thermal analysis, as well as finite element inelastic

Vacuworx International

pipe analysis. SNC-Lavalin has successfully executed and

Vacuworx International

delivered on an EPC basis, numerous pipeline contracts,

is headquartered in Tulsa,

in ductile iron, steel, pre-stressed concrete cylinder pipe,

Oklahoma, USA, and is celebrating its 10th anniversary

or thermoplastics, for the oil and gas and water and

this year. The company manufactures a vacuum based

wastewater sectors, with compliance to NACE for material

pipe lifting system – The Vacuworx lifting system - a self

selection where required. Noteworthy is the execution of

contained pipe lifter that attaches to an excavator and

a liquid sulphur slurry pipeline project in Canada, with

is controlled by the equipment operator remotely from

special designing of the piping and heating of the slurry to

the safety of the excavator, eliminating the need for any

maintain the liquid state.

additional ground crew.

Also of note is SNC-Lavalin’s participation in four

Their pipe handlers and components include lifters for

major water projects in Libya, including the operations,

line pipe and concrete pipe, support machines, in-field

maintenance, care and custody of the Sarir Plant to

applications and in-plant applications. Vaculift systems can

manufacture pre-stressed concrete pipes to be used in the

be adapted to handle a wide range of materials including,

Al-Kufra conveyance pipeline project to transport water

among others, glass, marble, granite, polished stone,

from the Libyan desert to the coastal cities.

plastics, tubulars, boxes, etc.

Stroynovatsya Ltd, Moscow, Russian Federation The Company STROYNOVATSYA

www.vacuworx.com

Zeppelin International AG, Zug. Switzerland The Caterpillar dealer was founded to operate in CIS. Its

LTD. was established in 2003 and has been working in the

territory includes Western Russia, Byelorussia, Ukraine,

construction of oil and gas industry facilities for six years.

Turkmenistan, Tadjikistan and Armenia. The company has been deeply involved in the pipeline construction business

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Main business activities:

since 2006 when Zeppelin Rusland (the branch of Zeppelin

-- Designing, engineering, procurement, construction,

International AG in Russia) started to actively collaborate

installation and commissioning of oil loading terminals,

with the leading national and worldwide pipeline

cross country oil and gas pipelines, tank farms,

construction companies as a provider of CAT machines

pumping and compressor stations, river crossing, and

and auxiliary equipment.

associated infrastructure including the replacement and

www.zeppelin.ru

THE IPLOCA NEWSLETTER

New Academic Member Gubkin Russian State University of Oil and Gas, Moscow

Fluor booked the approximately USD 700 million contract in the first quarter of 2009.

“Helping our clients execute vast and complex projects in

In 1930 the then Moscow Academy of Mines was

remote and demanding geographic regions of the world

reorganized into six higher educational institutes. The

is one of Fluor’s key strengths,” said David Seaton, senior

Petroleum Engineering Faculty became the basis for

group president of Fluor Corporation. “We are proud that

a new Moscow Petroleum Institute, named in honour

we were chosen for this strategically important project.”

of Academician Ivan Gubkin, “due to his tremendous contributions to higher education to train engineers needed for the socialist industry.”

Today Gubkin Russian State University of Oil and Gas is a

Nacap wins 3 out of 5 lots of the Südschiene-Project of EVN Netz GmbH

modern technical university, one of the leaders in Russian

The international pipeline contractor Nacap has won an

higher engineering education and has trained more than

important assignment in Austria, where it has been active

85,000 graduates. The university is closely linked with

since the nineties. The work is part of a larger project of

the Russian fuel and energy sector. The University Board

EVN Netz GmbH, which is since 2006 the network operator

of Trustees include the country’s leading oil and gas

of EVN AG (Energie Versorgung Niederösterreich). The

companies: JSC Gazprom, JSC NC Rosneft, JSC Lukoil,

EVN-Pipeline is part of the route which was chosen as the

JSC TNK-BP, RITEC, JSC Transneft, JSC Stroytransgaz

best alternative to solve capacity problems in the South

and others.

of Austria.

The university also has long-term cooperation agreements

Nacap will construct 66 km 800 DN (32”) pipeline of the

with leading international companies including BP,

total 120 km’s of the EVN-Project. The activities have

Shell, ConocoPhillips, Total, Schlumberger, Halliburton and

already started in May 2009 and will take approximately

Baker Hughes.

one year. With up to 200 people working on the

www.gubkin.ru

construction, the project will form a significant contribution to safeguard the employment in the region. The excavating

Resignations

works will be executed by the local construction firms GLS and L&G.

Resignations have been received from the following: Bachinger J., Austria Garneau Inc., Canada Omnitest GmbH, Germany

Nacap awarded QSN3 Pipeline Project in Australia

TrenchTech International, Inc., USA

Nacap Australia is pleased to announce that it has

Ukrnaftegazbud, Ukraine

executed a Pipeline Construction Contract with Epic Energy

Induction S.r.l., Italy

Yuzhtruboprovodstroy JSC, Russian Federation

for the construction of the

Zangas JSC, Russian Federation

QSN3 Pipeline Project.

The scope of the project incorporates the

MEMBER NEWS

looping construction of approximately 940 kilometers of

Fluor Secures Sakhalin-1 Chayvo Contract in Russia

18” gas pipeline from Wallumbilla in

Fluor Corporation has announced that its Russian joint

South East Queensland

venture Sakhalin Neftegas Technology LLC was awarded

to Moomba in South

Australia. The contract

a contract by Exxon Neftegas Limited, on behalf of the

is conditional on Epic

Sakhalin-1 Consortium, for expanding its Chayvo Onshore

Nacap expects it will be able to finalise the plans to

Processing Facility (OPF) located on Sakhalin Island off the

commence pipeline installation mid 2010, with facilities

east coast of Russia. Fluor and SakhalinNIPImorneft are

construction likely to commence in Nacap’s Victorian

joint venture partners in Sakhalin Neftegas Technology.

workshop from March 2010.

obtaining financial close.

NUMBER 40 SEPTEMBER 2009

11

Tekfen Awarded New Contract UAE – Abu Dhabi – SAS Full Field Development Asab, Sahil and Shah fields are located approximately 100-220 km south of Abu Dhabi City. The main objective of the project is to increase the current sustainable production from all the three SAS fields with ASAB as the hub and to provide additional capacity at ASAB to handle the processing and export of crude. The upgrading of the Asab field is esential to ADCO (Abu Dhabi Company for Onshore Oil Operations) overall development plan to increase its production and achieve the committed 1.8 million barrels of oil per day production. In addition to the production capacity upgrade of Asab, the scope includes upgrading the facility’s capacity to accept increased production from (Left to right) Mr. Abdullah Alsuwaiket (JV partner),

Sahil, Shah and other southeast fields and to upgrade the

Mr. Frans Nooren (Chairman Stopaq Europe B.V.),

associated utilities and water handling facilities.

Mr. Ron Strikker, Ambassador of the Netherlands, Mr. Abdullah Alsuwaiket (JV partner) share in the ribbon

Tekfen will provide fabrication, installation, pre-

cutting ceremony at the opening of Associate Member

commissioning, and commissioning assistance to

STOPAQ’s new production facility in Dammam, Saudi

PETROFAC, the international oil & gas facilities service

Arabia. The plant will manufacture STOPAQ’s patented

provider, for the Structural, Mechanical, Electrical and

Viscous-Elastic Corrosion Prevention Coating. Operating

Instrumentation works of Central Degassing Station

under the name STOPAQ Saudi, this company is a joint

facilities in the Asab Field to accommodate a sustained

venture between a major oil and gas supplier, Alsuwaiket

Asab production rate of 345 Mbopd, and for construction

Group, and STOPAQ EUROPE B.V. from Stadskanaal,

of 36”x 92 km Main Oil Pipeline to export a peak of 720

The Netherlands.

Mbopd. The contract value is USD 225,000,000, with an anticipated completion date of September 2012.

Tekfen wins Construction Works Contract Qatar – Mesaieed – Low Density Polyethylene Plant (LDPE-3) Qatar Petrochemical Company (QAPCO) intends to

J. Ray McDermott Completes Construction of PEMEX Maloob-C Platform Bound for Bay of Campeche

construct and operate a world class Low Density

Houston-based J. Ray McDermott (“J. Ray”) recently bid

Polyethylene Plant of 300,000 tons per year capacity

farewell to the Maloob-C drilling platform, built under a

based on 8000 hours operation. This new LDPE plant

contract for PEMEX Exploración y Producción (“PEMEX”),

(LDPE-3) which will be using the excess ethylene produced

Northeast Marine Region. The project is located in the Ku-

by QATOFIN and QAPCO, is based on BASELL GmbH

Maloob-Zaap field in the Bay of Campeche, Mexico, in 264

“Lupotech T Technology” and will be located within

feet of water. “This was the first project for our fabrication

the existing QAPCO boundaries in Mesaieed, Qatar.

facility at Altamira, Mexico,” said John Nesser, J. Ray’s

The scope of the project includes the main units of the

Executive Vice President and Chief Operating Officer.

processing plant, all the plant’s auxiliary systems located

12

in or around the area of plant, and the remaining utility

“Building on the successful completion of the Maloob-C

systems and facilities on site as necessary to support

platform and with the facility’s capabilities and deep water

the plant. Under the 30 months cooperation agreement

access to the Gulf of Mexico, we look forward to expanding

with UHDE GmbH of Germany, which has been awarded

our relationship with PEMEX on future projects.” Work on

this EPC contract by QAPCO, Tekfen will provide all the

the drilling platform began in February 2008. Fabrication of

construction works including civil, structural, mechanical,

the two-level, 2,535-ton deck and the 3,527-ton jacket, factory

piping, electrical and instrumentation works, and also pre-

testing, onshore pre-commissioning and operational testing,

commissioning and assistance to commissioning, start-up

load out and sea fastening were all performed by J. Ray at

and performance test activities for the LDPE-3 plant. The

Altamira. Additionally, more than 3,300 tons of piles were

contract value is USD 165,260,300, with an anticipated

fabricated at J. Ray’s Morgan City, Louisiana facility for the

completion date of December 2011.

project using the facility’s rolling mill.

THE IPLOCA NEWSLETTER

ON THE ROAD TO SUCCESS

subcontractors and their construction personnel, senior management and project engineers.

Finally, it is hoped that it will be of particular benefit in

A New IPLOCA Publication “Onshore Pipelines:

training, used by students and teachers in the pipeline

THE ROAD TO SUCCESS” will launch in San Francisco

industry. One copy will be made available to each Member or Associate Member delegate at the San Francisco

In 2003 a joint project began to investigate and improve

Convention and to each participant having contributed

the laying of large diameter pipelines for better, safer and

to the document. Additional copies will be available for

faster installation. The land train concept was studied and

purchase in the weeks following the convention.

a number of working groups were formed to identify the main bottlenecks and fields for potential improvement.

More information will soon be available at www.iploca.com/roadtosuccess

construction aspects, and was later dropped in favour of

Comments and enquiries may be addressed to

a broader perspective approach to address all phases of

roadtosuccess@iploca.com

Onshore Pipelines

IPLOCA

the onshore pipeline project from early development through

The

Road to Success

September 2009, 1st Edition

The Road to Success

Onshore Pipelines

The land train concept only addressed the pipeline

design, construction

Industry-wide collaboration

and commissioning.

The list of those companies and persons having

Working groups,

participated in this joint effort is significant. A wide

drawn from IPLOCA

range of companies and individuals from oil & gas

member companies

investors & owners, design companies, construction

and a select group

contractors, suppliers and specialised subcontractors

of international oil

have collaborated in this work to produce a document

companies, set out

intended for wide use in the pipeline Industry.

to create a guidance

IPLOCA September 2009 - 1st Edition

document. Their

Contributing Companies

combined experience

We are very grateful to the following companies for

led them to recognize

providing their expertise to the “Road to Success”.

why the industry has struggled on some projects before,

A full list of individual acknowledgements is included

why many projects have succeeded and what needs to be

in the document.

done in order to succeed more often.

Bonatti S.P.A., Borealis AG, BP, BS Coatings, How can companies anticipate and avoid challenges

Akzo Nobel Powder Coatings GmbH, BrederoShaw,

before beginning construction, conduct construction work

BS Coatings, Canusa-CPS, Caterpillar, Consolidated

to minimize exposure to further challenges and reach

Contractors Company (C.C.C.), Chevron, Computerised

the mutual agreement necessary for the foundation for

Information Technology Ltd (CIT), Conoco-Phillips,

a successful contract, addressing both known and as yet

CRC-Evans Pipeline International, Inc., Denso

unknown challenges?

GmbH, E.ON Ruhrgas, Elmed GmbH, ENI, Entrepose Contracting, Europipe, Fluor, Fugro, Gulf Interstate

The intent of “the Road to Success” is to provide the

Engineering Company(GIE), GDK S.A., HabAU Hoch-

reader with the basic knowledge to improve the delivery

Und Tiefbaugesellschaft M.b.H., Heerema Marine

of a project, i.e. cost and schedule, while reducing the

Contractors, Herrenknecht AG, Industrie Polieco MPB

environmental footprint and achieving the desired

BB, Integrated Project Services, IPA Global, ITI Energy,

safety objectives. The resulting 400 page document is

Land and Marine Project Engineering Ltd, Ledcor,

currently in print production and will launch at the IPLOCA

Laurini Officine Meccaniche, Maats Pipeline Equipment,

Convention in San Francisco. It is hoped that “The Road to

Petrobras, Pipeline Induction Heat, PRCI, Rosen

Success” will assist all stakeholders in the development

Group, RSK Group plc, Serimax, Socotherm, Somico,

and construction of pipeline projects - project managers

Spiecapag, Tenaris, Tesi S.R.L., Tesmec S.P.A., Total,

and engineers working for investor/owners, designers

Vietz GmbH and Volvo CE.

and environmentalists, construction contractors and

NUMBER 40 SEPTEMBER 2009

13

CONVENTION UPDATE We Can’t do it Without You! Sincere Thanks to our Valued Sponsors We are very grateful to have received the following sponsorships for the San Francisco Convention and take this opportunity to recognise the support of the following companies in these difficult economic times:

Special Functions:

Tour Programme:

The First Time Attendees Cocktails

1. Journey through Wine Country

Pipeline & Gas Journal and Ozzie’s

ARB Inc. and Gulf Interstate Engineering

Flowers at Final Banquet

Pipeline Padder, Inc. (co-sponsorship)

(co-sponsorship)

Fluor

The Welcome Party

2. Alcatraz

Band at Final Banquet

Dodsal Group

Lincoln Electric Company

Koop Holding Europe b.v.

President’s Dinner

3. San Francisco by Motorized Cable Car

Entertainment at Final Banquet

Entrepose Contracting and IPLOCA

Spiecapag

HABAU Hoch- und Tiefbaugesellschaft and

(co-sponsorship)

4. Journey through Wine Country

PPS Pipeline Systems (co-sponsorship)

Directors & Wives Dinner

Welspun and IPLOCA

Audiovisual at Final Banquet

Ritchie Bros. Auctioneers

5. Alcatraz

Vacuworx International and IPLOCA

Former Presidents’ Cocktails

ShawCor Ltd

Car for Lottery

Zakhem International Construction Ltd

6. Museums of San Francisco

Ledcor Pipeline Limited

The CRC-Evans Luncheon

Serimax

Photographers at the Convention

CRC-Evans Pipeline International and

7. Muir Woods & Sausalito

PTPS and Tefken Construction and

co-sponsored by Applus RTD Group

CPP China Petroleum Pipeline Bureau and

Installation Co., Inc. (co-sponsorship)

The Caterpillar Evening

Taishan Construction Machinery Co. Ltd

Convention Photo CD

Caterpillar

(co-sponsorship)

ROSEN Group

Fireworks

8. Alcatraz

Printing of Pocket Programme

Laurini Officine Meccaniche

Borusan Mannesmann

Goriziane S.p.A.

The Spy Ladies Brunch

9. San Francisco by Motorized

Printing of Final Banquet Menu

Pipeline Inspection

Cable Car (for latecomers)

Goriziane S.p.A.

Members & Associate Members

Salzgitter Mannesmann International GmbH

Printing of Attendance List Pipeline & Gas Journal

Cocktails Volvo Construction Equipment

Russian Simultaneous Translation

Members & Associate

Registration Desk

Argus Limited

Members Lunch

Ritchie Bros. Auctioneers

Coaches to the Airport

Bechtel and Herrenknecht AG

Welcome Drinks at Registration

Max Streicher GmbH & Co

(co-sponsorship)

J. Ray McDermott, Inc.

Convention Fund Contributions

The John Fabick Cocktail Party

Internet Centre

Fluor

Pipeline Machinery International

Consolidated Contractors Company (C.C.C.)

Music for “Dancing ‘til Dawn”

Coffee breaks at Open General Meetings

Trencor/Astec Underground and

C.A.T. International Ltd.

American Augers

Audio Visual at Open General Meetings

Petro-Force,

Open Bar for “Dancing ‘til Dawn”

Land and Marine Project Engineering Ltd

Welspun

Gifts: Denso GmbH,

Jindal Saw Ltd.

Registration Bags for the Gentlemen

Insight Guide to California

PIH Golf Tournament

ShawCor Ltd.

Maats Pipeline Equipment

Pipeline Induction Heat

Registration Bags for the Ladies

Liebherr model

WWM Tennis Tournament

Spiecapag

Liebherr

Worldwide Machinery

14

Convention / IPLOCA Functions:

THE IPLOCA NEWSLETTER

Wine at Final Banquet

Champagne at Final Banquet

Willbros Group, Inc.

Socotherm

Lottery to benefit Caritas Internationalis Following IPLOCA tradition, President Bruno de La Roussière and his wife Gilberte have selected the charity which will receive the proceeds from the lottery in San Francisco. Their chosen beneficiary is Caritas Internationalis.

Caritas has many faces - community centre and international relief agency, home for the elderly and school for the former child soldier, HIV care provider and human rights campaigner.

The charity provides assistance to the poor, the vulnerable and the excluded on behalf of a billion Catholics around the world. It works on humanitarian emergencies, on human development and on campaigning against poverty, exclusion, intolerance and discrimination. www.caritas.org

“C’mon folks…last chance to support this worthy cause!”

lottery will go directly to Caritas Internationalis.

Tickets are USD 75 each and may be purchased at the Convention Registration Desk all week, with the drawing to take place as the climax of the Final Banquet on Friday night.

Although you must be present to win, anyone unable to attend the Final Banquet may contact the Secretariat or make a direct donation to the charity at www.caritas.org.

Master of Ceremony, Butch Graham of Ritchie Bros Auctioneers will again be leading the festivities at the Final Banquet in San Francisco.

We are delighted that Ledcor Pipeline Limited will provide a BMW-Mini certificate (value USD 35,000) for the lucky car lottery winner and that all proceeds from the

NUMBER 40 SEPTEMBER 2009

15

NEW TECHNOLOGIES AWARD Sponsored by BP, the IPLOCA New Technologies Award

NGS-Ecmos -- A new piece of equipment, tool or construction supply Stopaq Europa -- “When hard is not always tough enough” Volvo CE -- Volvo PL4608 Pipelayer

is presented every alternate year during the annual

Adjudication of the Award

Convention to an IPLOCA Member or Associate Member

Five members of the IPLOCA Board of Directors

who, in the opinion of the adjudication committee has

judged the award.

made a significant contribution to innovation in crosscountry pipeline construction.

Judging Process: A series of yes/no questions

For the 2009 Award, we are pleased to have received 14

-- Is it a new technological breakthrough?

excellent entries, as follows (in alphabetical order):

-- Is it a new Engineering breakthrough?

-- Is it a new piece of equipment?

Caterpillar

-- Is it a new tool?

-- Caterpillar D7E Track-type Tractor

-- Is it a new construction supply?

CPP (China Petroleum Pipeline Bureau) (two entries)

-- Is it a new or revised construction practice?

-- Fabrication of Hot induction bends from X80 high

-- Is it a new type of permanent material?

strength steel -- Optical fiber pipeline security forewarning system

Data to support the basic criteria:

Denys

-- Has it been successfully used on a major project in the

-- FRIEX – New friction welding system for pipelines

field?

-- Is it in such significant development stage to warrant an

Herrenknecht -- Direct Pipe – One-Pass Pipeline Installation in all Geologies

Award?

Lastechniek Europa bv (two entries)

Scoring the Entry: (on a scale of 1-5)

-- Red Ram – Back to round internal line-up clamp

-- Does it provide the industry something it did not have

-- Hot Tap automated welding system

before?

-- Is it an identifable step forward in the technology/

Laurini Officine Meccaniche -- New Laurini Pipelayer

construction process?

Ledcor Pipeline Ltd (two entries)

-- Does it improve safety and/or environmental protection?

-- Cab Riser

-- Does it overcome a current problem area?

-- Highwalker

-- Does it provide a reason to change the manner in which pipelines are laid?

Ludescher Cablecrane -- New Carriage GSK 160 for cablecrane systems

Huge tunnel to be built under San Francisco Bay

-- Does it reduce costs?

The project is believed to be the first major tunnel ever built across the bay. Using a giant boring machine, workers will carve a 14-foot high corridor through clay, sand and bedrock from Menlo Park to Newark as deep as 103 feet below the bay floor. They’ll then run a 9-foot-high

Hoping to protect one of

16

steel water pipe through the middle. “All the experts tell

the Bay Area’s main water supplies after the next major

us that within the next 30 years, there is a 63 percent

earthquake, construction crews will soon embark on a

chance of having a major earthquake in the Bay Area,”

job that sounds like something out of a Jules Verne novel:

said Ed Harrington, general manager of the San Francisco

building a massive, 5-mile-long tunnel underneath San

Public Utilities Commission, which is in charge of

Francisco Bay.

the project.

THE IPLOCA NEWSLETTER

UPCOMING INDUSTRY CONFERENCES 43rd Annual IPLOCA Convention

World Gas Exchange - Asia 2009

14-18 September 2009

16-19 November 2009

San Francisco, USA

Shanghai, China

www.iploca.com

www.globaleaders.com/en/2009/aps

Pipeline Integrity Management

14th Turkmenistan International Oil & Gas Conference

27-28 September 2009

17-19 November 2009

Doha, Qatar

Ashgabat, Turkmenistan www.oilgasturkmenistan.com/face

24th World Gas Conference (WGC2009) 5-9 October 2009

OGMT

Buenos Aires, Argentina

Connecting with Solutions 2010

www.wgc2009.com

Oil & Gas Maintemance Technology Conference & Exhibition & Pipeline Rehabilitation & Maintenance

Pipeline Technology 2009

Conference & Exhibition

12-15 October 2009

18-20 January 2010

Ostend, Belgium

Manama, Bahrain

www.ti.kviv.be/conf/pipeline2009

www.oilandgasmaintenance.com

Australian Pipeline Industry Association (APIA) Convention

PLCA 62nd Annual Conference

17-20 October 2009

17-21 February 2010

Cairns, Australia

Scottsdale AZ, USA www.plca.org

Oil and Gas Transportation in the CIS and Caspian Region 2009

DCA 49th Annual Convention

11th annual meeting

23-28 February 2010

20-22 October 2009

Los Cabos, Mexico

Moscow, Russia

www.dca-online.org

www.theenergyexchange.co.uk OCEANTEX 2010 including North African Oil and Gas Submit 2009

Offshore Technology 2010

27-29 October 2009

Gastech 2010

Tunis, Tunisia

Refining 2010 Transport & Logistics 2010

5 Asian Pipeline Conference & Exhibition

3-6 March 2010

28-29 October 2009

Mumbai, India

Sabah, Malaysia

www.chemtech-online.com/oceantex

IMCA Annual Seminar 2009

Hannover Messe

Integrated Marine Operations in Challenging Times

19-23 April 2010

4-5 November 2009

Hannover, Germany

Rio de Janeiro Copacabana, Brazil

www.hannovermesse.de

th

www.imca-int.com/events/seminar No-Dig Moscow Asia Pipeline Summit 2009

The Leading trade Fair and Conference for Trenchless

11-12 November 2009

Technologies in Russia, CIS and Baltic States

Beijing, China

1-4 June 2010

www.globaleaders.com/en/2009/aps

Moscow, Russian Federation

(IPLOCA Members will enjoy a 10% discount on registration fees)

www.nodig-moscow.ru

NUMBER 40 SEPTEMBER 2009

17

ELECTIONS TO THE BOARD OF DIRECTORS

A completed blue ballot paper naming the chosen representative to replace these directors must be delivered to the Executive Secretary, Juan Arzuaga, in the IPLOCA Office at the Fairmont by the Area Director or Associate Member Representative no later than 6:30 pm on Thursday,

Our sincere thanks to the following outgoing members of the IPLOCA Board of Directors whose terms are

17 September.

complete and/or whose board seats are becoming vacant

Proxies

within their geographical area: Leonid Bohkhanovskiy,

If you are a Member or Associate Member carrying proxies,

Kaan Dogan, Nasser Issa, Jésus Garcia Pons, Doug Evans,

a copy must be delivered to the Executive Secretary three

John Reed, George Demetriou, Liu Weimin and Greg Miller.

days in advance of the AGM - by Tuesday, 15 September in order to be valid.

Election Procedure At the San Francisco Convention designated Member

Board Nominations will be presented to the Membership

Representatives (one representative per Member company)

for ratification on Friday morning at the AGM.

attend a short meeting of their appropriate geographical area, hosted by the area director, on Thursday afternoon to a) confirm a second term for incumbent directors and/or

Election Meetings in San Francisco

b) to vote for new directors to serve on the Board of

Thursday, 17 September

Directors for 2009-2010.

5:00 pm to 6:00 pm (Fairmont Hotel Garden Room, Green Room,

Similarly, all Associate Members attend a meeting of

California Room and Pavilion Room)

their peers to confirm or vote for their representative(s).

Vacant Seats - September 2009 Current

Members

Board

Title

in Region

Members

20

Europe Eastern Leonid Bokhanovskiy

Director

Kaan Dogan

Director

Vacant seat 1

Najib Khoury

Director

To be confirmed

Nasser Issa

Director

Seat no longer vacant – only 13 members in region 10

Central Europe Karl Trauner

Incoming 1st Vice President* 16

Jésus Garcia Pons

Director

Doug Evans

Director

Europe Northwest Adam Wynne-Hughes

1

2nd VP

The Americas

2 Vacant seat Vacant seat

10

1

21

2

1st VP

Europe Mediterranean

Incoming President*

George Demetriou

Director

Vacant seat

Bruno de La Roussière

President

Vacant seat from incoming Past President 16

East & Far East Liu Weimin

Director

Andy Lukas

Director

2 Vacant seat To be confirmed

114

Associate Members

2

Marco Januzzi

Director

To be confirmed

Greg Miller

Director

Vacant seat

* to be confirmed by the 2009/2010 Board of Directors

18

2 Vacant seat

13

Middle East & Africa

Status at San Francisco

THE IPLOCA NEWSLETTER

IPLOCA 2008-2009 BOARD OF DIRECTORS

Left to right, front row: Karl Trauner, John Reed, Adam Wynne Hughes, Bruno de La Roussière, George Demetriou, Phil Bond, Juan Arzuaga Middle row: Greg Miller, Weimin Liu, Marco Jannuzzi, Doug Evans, Kaan Dogan, Roberto Castelli Back row: Luc Henriod, Andy Lukas, Jesus Garcia Pons, Najib Khoury, Bob Deason, Leonid Bokhanovskiy Inset Nasser Issa

Officers Bruno de La Roussière (Entrepose Contracting)

Director, The Americas

President

Nasser Issa (C.A.T. International Ltd)

Adam Wynne Hughes (Land & Marine)

Director, Middle East & Africa

1 Vice President

Marco Jannuzzi (Caterpillar)

Karl Trauner (HABAU)

Director, Associate Members

2nd Vice President

Najib Khoury (CCC)

Phil Bond (Pipeline Induction Heat)

Director, Middle East & Africa

Treasurer

Andy Lukas (AJ Lucas)

John Reed

Director, East & Far East

Immediate Past President

Weimin Liu (China Petroleum Pipeline Bureau)

st

Director East & Far East

Directors

Greg Miller (Pipeline Inspection Company Ltd)

Leonid Bokhanovskiy (Stroytransgaz)

Director, Associate Members

Director, Europe Eastern George Demetriou (J&P)

Directors at Large

Director, Europe Mediterranean

Phil Bond (Pipeline Induction Heat)

Kaan Dogan (Attila Dogan Construction & Inst. Co. Inc)

Roberto Castelli (Bonatti)

Director, Europe Eastern

Bob Deason (J.Ray McDermott)

H. Douglas Evans (Gulf Interstate Engineering) Director, The Americas

Executive Secretary

Jesus Garcia Pons (ARB Arendal)

Juan Arzuaga

NUMBER 40 SEPTEMBER 2009

19

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