HQ Magazine (July 2012)

hqmagazine hydrocarbons quarterly

Unconventional Gas Breaking new ground

> Deepsea innovation and industry leadership > North Rankin 2 topside installation

The content Published by

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WorleyParsons Level 12, 333 Collins Street Melbourne VIC 3000 Australia

INTECSEA world first achievements

Managing Editor Phil Toohey Global Director, Marketing and Research

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Produced by WorleyParsons Marketing and Research Group, Australia

Contact Information www.worleyparsons.com hqmagazine@worleyparsons.com

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Ready... Set... Drill!

How we are positioning ourselves globally to help our customers take advantage of the opportunities in unconventional hydrocarbons

Issue 4, 2012

Also... p.4 Focus on safety

p.6 Global awards and recognition

p.20 Offshore Technology Conference (OTC)

We review the most successful

conference in the event’s 40 year history

p.16 Deepsea innovation

hqmagazine

Technological advances in deepwater gas and oil

hydrocarbons quarterly

p.18 Project Report

North Rankin 2 – a successful

topside installation

p.21 Office intel p.22 Engineering the future

Our localization expertise to be tested in developing East Timor

Message from Brian Evans In this issue we look at two opposite ends of the hydrocarbons market – onshore unconventional gas reserves and deepwater reserves.

We also feature the installation of the North Rankin 2 topside for Woodside, the first of three of the worlds largest topsides being executed by WorleyParsons.

Like so many others my desire to become an engineer (an ocean engineer, in my case) was fuelled by the extraordinary challenges owners faced to technically solve complex issues, and make projects economically viable. This challenge has only become greater during my tenure in the industry.

As I travel around the WorleyParsons offices and meet with customers across the globe, I am always struck by the level of creativity and intelligence that is being devoted to hydrocarbons projects everywhere.

Designing more efficient processes, utilizing new materials and technologies, crafting optimal procurement strategies, meeting environmental requirements, adapting for localization requirements, and creating predictable and efficient programs for the construction teams has made the role more challenging and stimulating .

This HQ edition highlights some of the intellectual leadership that WorleyParsons and our customers are devoting to the most exciting industry in the world.

Brian Evans Managing Director Hydrocarbons

Brian Evans foreword hq Magazine

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Our safety culture I am honored to take on the Global HSE role to allow Marian McLean to focus on her role as Global Integrity Manager. There is certainly a serious sense of responsibility in being entrusted to lead the safety function of an industry leader already recognized for its proudly uncompromising safety culture. An important challenge is to nurture this culture as we continue to expand into more remote locations and keep up the good work towards our efforts to achieve zero harm, both on and off site.

I hope to continue to report on items such as the recent milestone celebrated by our Worsley Alumina, Improve team – 10 years on site without a recordable injury. Another outstanding milestone was delivered by the 370 person EPCM-1 team and contractors for Mobil Producing Nigeria who recently reached five million hours worked without a recordable injury. This result is made even more encouraging due to the high risk nature of the location. Both milestones are great example of a project team’s long term commitment to setting high safety standards continuously.

Environmental responsibility An example of how we are being proactive about environmental sustainability at a global level is our involvement with the Carbon Disclosure Project – an independent not-for-profit organization working to drive greenhouse gas emission reduction and sustainable water use by business and cities. Across WorleyParsons, focal points in each location have supported this effort by capturing data on electricity, gas, petrol and diesel consumption and we will continue to report on our data as part of our ongoing commitment to zero harm to the environment.

Paul Cook, Group HSE Director

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hq Magazine Culture on Safety

WorleyParsons has implemented a company-wide focus on road safety as part of our relentless pursuit of ‘Zero Harm’.

“Programs and policies to promote safe driving behaviors ensure that work related driving takes place under the safest possible conditions.”

Last year we banned mobile phone usage whilst driving; this includes the use of hands free devices. In addition, we are now a Five pillars signatory to the first ever Global Road Safety Commitment.

By making a commitment an organization can positively The Global Road Safety Commitment is a document that has influence one or more of the ‘Five Pillars’ outlined in the ‘Global been authored by the United Nations Road Safety Collaboration Plan for the Decade of Action for Road Safety’. The United ‘Work Related Road Safety Working Group’.

Nations decade was launched by the UN General Assembly in May 2011 to lower the number of road fatalities worldwide.

Its purpose is to help organizations develop a systematic approach to manage the key risks arising from road transport, The overall framework of activities centers on: (1) building thereby contributing to successful road safety outcomes. road safety management capacity; (2) improving the safety of road infrastructure and broader transport networks; (3) further Work related traffic is a significant component of the traffic developing the safety of vehicles; (4) enhancing the behavior stream worldwide. In many countries, almost 30% of all fatal of road users; and (5) improving post-crash care. road traffic crashes are estimated to be work related.

Governments, international agencies, civil society organizations By signing the document, WorleyParsons pledges to work and private companies are participating. towards zero deaths and zero severe injuries as a result of our operations.

Arriving Safely is everyone’s business hq Magazine

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Global awards Middle East

Canada

‘Unprecedented’ contract extension awarded

by Saudi Aramco

Hebron – Topsides Award

WorleyParsons has agreed to terms with Saudi Aramco which will see its current Maintain Potential Programme (MPP) contract extended for a further two years.

WorleyParsons Arabia has held this contract for the past nine years.

The contract covers an on-going portfolio of offshore green and brownfields projects and includes a full suite of engineering and project management services. The MPP team has to date successfully carried out the project management, engineering, design, fabrication and installation supervision of more than 45 new platforms, upgrade of 100 existing platforms, installation in excess of 180 kilometers of subsea pipelines and submarine cables and the hook-up of over 300 wells.

WorleyParsons Managing Director for Middle East, North Africa and India, Jay Ibrahim, said: “We are delighted to continue our long-standing relationship with Saudi Aramco and to renew this contract for a further two years. This unprecedented third extension is testament to the professionalism and commitment of everyone involved in delivering projects in a complex and challenging environment.”

ExxonMobil Canada Properties have awarded WorleyParsons the EPC contract for the Topsides on the Hebron Project.

WorleyParsons will provide, along with Fluor, overall project management of the contract with subcontracts to be awarded to multiple third parties.

The Hebron Field is an oil and gas development in the Atlantic Ocean located 350 kilometerss offshore from St. John’s in Newfoundland and Labrador, Canada.

CEO, John Grill commented: “WorleyParsons is excited to have been contracted for this next phase by ExxonMobil Canada Properties for the complex Hebron project which will utilize our proven expertise in sub-Arctic float-over topsides”.

“WorleyParsons is excited to have been contracted for this next phase

by ExxonMobil Canada Properties for the complex Hebron project which will utilize our proven expertise in sub-Arctic float-over topsides.”

Joint Operations award to boost output in partitioned zone

John Grill, WorleyParsons CEO

WorleyParsons has been awarded a four year contract to provide engineering, project management and construction management services to increase output from onshore oil fields within the partitioned zone between Kuwait and Saudi Arabia.

TransCanada Pipelines project awards

The contract was awarded by Joint Operations, which is staffed and funded equally by Saudi Arabian Chevron and Kuwait Oil Company.

The contract will be executed from WorleyParsons offices in Kuwait, the UK and India.

WorleyParsons Cord, the construction arm of WorleyParsons in Canada has been awarded two contracts for the fabrication and construction of the Hardisty Terminal A brownfield work and Terminal B balance of plant construction at the TransCanada Pipelines Limited Hardisty facility. The project sites are located 190 kilometers southeast of Edmonton in Alberta, Canada. The work is scheduled to be completed in December 2012.

Latin America CNPC joint venture award WorleyParsons has been awarded the Moin Refinery Expansion for the CNPC joint venture in Costa Rica. This is a joint development project between our teams in Monrovia, Latin America and Beijing, together with China Eastern International (CEI), a wholly owned design institute of CNPC, based in Qingdao on China’s east coast.

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hq Magazine Global awards and recognition

United States and Caribbean Point Thomson PM and EPC award

India office leverages

WorleyParsons have been awarded a contract to provide project management, and EPC services to ExxonMobil for its gas project in Alaska, USA.

global LNG capability to secure Hiranandani contract

The role will primarily be to manage the Point Thomson Initial Production System project, which is located on a remote field, including the construction of gas processing facilities.

WorleyParsons’ 40-year experience in Arctic design and construction provides a significant starting point for the team.

Europe Work share to deliver for Statoil Contract WorleyParsons has been awarded the Peregrino II Field Development EPMA contract, which will be executed through workshare between WorleyParsons offices in Europe and CNEC WorleyParsons in Brazil. The customer is South Atlantic Holding BV (a Netherlands-based joint venture between Statoil ASA and Sinochem).

The Peregrino Field is located in the southwestern part of the Campos Basin in approximately 100 meters of water, 85 kilometers offshore Brazil. The scope of the contract covers engineering services, procurement activities and management assistance for the Peregrino Phase II facilities, comprising a greenfield wellhead platform (WHP C), complete with integrated drilling facilities and a 120-man LQ module, tied back to an existing FPSO. The contract commences in June 2012 with options to proceed into the detailed design and fabrication phases of the project.

Joining the Tengiz project to help grow local content A joint venture between WorleyParsons and Fluor has won a contract for Tengizchevroil’s wellhead pressure management project in Kazakhstan, focused on the Chevron-operated Tengiz field.

The joint venture with Flour, which also partners with the Kazakh Institute of Oil and Gas (KING) and KazGiproNefteTrans Engineering Company (KGNT EC), will train and build engineering and construction skills in the local workforce.

The project is set to support the ongoing operations of the field, and promote the long-term sustainable development of the asset.

WorleyParsons has entered into an agreement with Hiranandani Gas Company Private Ltd. (HEnergy) in Mumbai India to provide Owners Engineer (OE) services on their new onshore regasification terminal at Jaigarh Port Maharashtra, India.

HEnergy’s new regasification terminal will produce 8 million tonnes per annum of LNG. The project is currently nearing completion of the Front End Engineering and Design (FEED) phase. WorleyParsons will be preparing the Detailed Project Report (DPR) for use for project financing and permitting approvals including environment clearances. The team is also preparing the EPC Scope of Work package required to progress the project to the next phase of development.

Chevron awards Rosebank FPSO FEED to WorleyParsons and its subsidiary INTECSEA The Rosebank oil and gas field is in the northwest of the Shetland Islands and is considered to be one of the biggest discoveries on the UK Continental Shelf.

To monetize the field, Chevron have decided to combine the operation of a semi-submersible drilling rig with a Floating, Production Storage and Offloading vessel (FPSO). In 2011, WorleyParsons and INTECSEA were jointly awarded the pre-FEED contract for the FPSO. The final investment decision is planned for early 2013, so that the drilling campaign could start in 2015 for Rosebank FPSO oil and gas production in 2017.

Global awards and recognition hq Magazine

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ExxonMobil predicts that global energy demand will grow by 30% by 2040*.

The majority of this energy is anticipated to be created from fossil fuel sources – oil and gas. However, the stunning development of unconventional oil and gas is expected to represent an increasingly important part of the world’s future energy supply.

What is meant by ‘unconventional’?

An ‘unconventional’ hydrocarbon is a dynamic concept, as new technology renders previously ‘unconventional’ deposits as accessible. Unconventional usually refers to hydrocarbons that are trapped in the ‘source rock’, as opposed to ‘conventional’ hydrocarbons that migrate from source rock to a ‘reservoir’.

Unconventional hydrocarbons are considered challenging for oil and gas companies to produce due to physically limiting factors such as low porosity – the amount of empty space (pores) between the granular material that makes up the rock; and permeability – how easily gas or fluids can flow between the pores.

The most popular unconventional fuels are tight gas, coal seam gas (CSG) and shale gas. Tight gas is trapped in ultra-compact reservoirs characterized by very low porosity and permeability.

CSG is a naturally occurring gas trapped in underground coal seams; it also has very low permeability. Shale occurs within shale type rocks that are commonly associated with traditional oil and gas sources. Shale and tight gas resources are typically found at depths much greater than coal seam gas. The production of all three has been rising in recent years.

World resources Globally, there is wide distribution of tight gas, CSG and shale gas and their pursuit has only just begun with Eastern Australia and the USA leading the way.

Australia’s latest LNG boom is being driven by the emergence of CSG to LNG projects in Queensland. In the USA, shale basins are located across North America, from Pennsylvania to Texas to British Columbia, and their rapid development means that unconventional gas currently now accounts for over half of America’s natural gas production.

The trend is likely to extend further in the next few years, particularly in Europe and Asia. In Europe, front-end delineation drilling is under way in Austria, Germany, Hungary, Poland and other European countries. In Asia, potential reserves have been identified in Indonesia and India. In China projects to evaluate and develop gas shales in Sichuan Province are underway.

* 2012 The Outlook for Energy: a View to 2040 8

hq Magazine Ready... Set... Drill! – Unconventional Gas

Ready... set… drill!

The race to tap unconventional hydrocarbons

Fast fracking Australia’s sustainable future

Context Queensland’s Curtis Island Liquidified Natural Gas Projects will produce LNG from CSG produced in Queensland’s Surat and Bowen Basin areas. The source gas will be transported via a 540 kilometer underground pipeline network to gas liquefaction and export facilities on Curtis Island, off Gladstone in Central Queensland. The multibillion dollar projects represent a major investment in Australia’s efforts to develop a cleaner energy source for the future.

Deliverables In 2010 WorleyParsons was appointed as the EPCM contractor for the upstream gas field facilities and related infrastructure for the QCLNG Project. This project is estimated to ultimately require approximately 6,000 individual gas wells as well as gas and water gathering systems, electrical power distribution, trunklines, field compression stations, central processing plants and associated infrastructure facilities.

We are applying our full suite of systems and tools, including the latest 3D design and procurement software to the project which is characterized by key schedule targets and logistical challenges in providing services across a large geographical area. With the project being designed in Brisbane, we have established a Workshare office in Melbourne and our Beijing office is operating as a High Value Engineering Centre to provide added value and program assurance.

Comment “The QCLNG project is on track to produce first LNG in 2015 and up to 10 million tonnes of LNG each year, making it the largest coal seam gas project in Australia.

It is both exciting and a privilege to be involved in a pioneering project that will help to create a new industry in Queensland and to be at the technological and developmental forefront of the recent rapid innovation in the unconventional gas and oil sector.”

Antony Wauchope, Vice President Hydrocarbons Ready... Set... Drill! – Unconventional Gas hq Magazine

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In the Middle East, significant tight gas reserves have been established in the country of Oman in BP’s Khazzan field.

WorleyParsons continues to be a primary contractor for BP, providing FEED on project early works, central processing facilities and infrastructure, and gas gathering and export lines.

The successful monetization of this acreage has the potential to see Eagle Ford emerge as one of the leading return shale plays in the world.

In South America and Africa, large shale gas reserves exist in Argentina, Brazil and South Africa, however, no production has been established yet.

It was the combination and advancement of two existing technologies in the 1990s – horizontal drilling and multi stage hydraulic fracturing (‘fracking’) – that reshaped the economic profile of developing unconventional hydrocarbons.

Reserves Developing unconventional resources requires a different approach from exploring, and developing, conventional resource reservoirs. Many of the unconventional resources, particularly America’s shale fields, were discovered decades ago.

So, unconventional exploration focuses more on identifying commercially attractive strategies that typically involve a relatively high number of wells, spread over a large development region.

For example, WorleyParsons is providing engineering and design services for Talisman’s 160,000 acres in the promising unconventional Eagle Ford basin in South Texas. The project is garnering attention with superior reservoir characteristics, a friendly regulatory environment and a location proximate to existing oil and gas infrastructure and liquids product markets.

Our participation includes assisting in the tactical and strategic planning and execution of the overall field development program.

The tactical program reacts to field exploration and production data gathering, and maintenance of hundreds of leasehold positions, to meet near term production forecasts; while the goal of the strategic program is to develop unique, creative ways to optimize development activities and achieve highest value project delivery.

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hq Magazine Ready... Set... Drill! – Unconventional Gas

The role of technology

Horizontal drilling involves drilling vertically before diverting the the drill horizontally through the target rock for up to several kilometers.

Fracking involves the creation of fractures in rocks by injecting fluid into cracks to force them to open further, allowing the gas to seep into the wellbore for extraction. A proppant, such as sand and other man-made products, is mixed with the fluid to help hold the cracks open as gas migrates to the surface.

Multi-stage fracking is used in horizontal wells to frack the wells in a number of incremental steps, with the individual fracked sections sized to suit the rock, frack pumping capacity and water availability.

These innovations were pioneered by American independent wildcatter George Mitchell who had been working on exploiting shale gas since the early 1990s by developing improvements to existing technologies. Higher gas prices after 2000 allowed the higher-cost shale gas extraction techniques to compete with conventional gas production. As producers gained knowledge and developed drilling efficiencies, shale gas drilling was able to compete economically, even as gas prices moved relatively lower.

Markets The markets are responding. The emergence of the CSG to LNG projects in Australia and the growth of shale projects in America, are the clearest examples of how the commercial potential of unconventional resource projects have caught the attention of national and international oil companies.

Unlocking Oman’s unconventional gas potential

However, projects for unconventional hydrocarbons are being developed in many countries. For example, WorleyParsons is currently executing unconventional gas projects at various stages of progress in Australia, Canada, Europe, Africa, the Middle East and America.

In Australia alone, we have executed work on: • Queensland Gas Company’s QCLNG Project as well as the Berwyndale South and Argyle Developments • Arrow Energy LNG Project as well as the Surat Gas, Kogan North and Moranbah Gas Projects • ConocoPhillips/Origin Energy’s Australia Pacific LNG Project • Origin Energy’s Talinga and Spring Gully Projects • Santos’ Scotia Field Development Graham Hill, Hydrocarbons Regional Director for Asia-Pacific believes these projects exemplify the aggregation of our global expertise in field development, planning and execution, gas processing, water management, pipelines, procurement and project logistics.

“In particular, we believe our Full Field Program Management offering that integrates our capabilities in an unconventional play from inception through full monetization to field divestiture, is unique in the marketplace and is why our customers choose to work with us.” says Hill.

“Unconventional hydrocarbons is a game changer for the global oil and gas business, and WorleyParsons has all the skills and experience to provide a comprehensive service for customers. We bring together our environmental, water and hydrocarbons processing expertise coupled with our unique ‘lean manufacturing approach’ to the project implementation; followed by a similar program approach through Improve across the asset lifecycle.”

“We bring together our environmental, water and hydrocarbons processing expertise coupled with our unique ‘lean manufacturing approach’ to the project implementation; followed by a similar program approach through Improve across the asset lifecycle.”

Graham Hill, Regional Director

The Sultanate of Oman is experiencing rapid industrial growth which has resulted in an increasing demand for energy. The future of Oman’s ability to increase its natural gas production hinges on the application of new technologies to the Khazzan and Makarem gas fields, a giant tight gas accumulation located in northern Oman.

Deliverables In 2007 BP agreed to invest USD 700 million in the fields which could contain as much as 30 trillion cubic feet of gas. BP then appointed WorleyParsons to carry out the Select stage study for the Early Well Test, which involved the evaluation of options for the extended well testing facility. Front End and detailed engineering and procurement followed, with first gas flowing early 2011.

The project has 300-400 wells – most drilled horizontally in difficult conditions – a 500 kilometer gas gathering system, 30 million cubic meters per day gas processing plant, gas and condensate export pipelines and associated support infrastructure. The plant is due for start-up in 2016.

Comment “WorleyParsons’ unconventional gas expertise, aligned with our hydrocarbons focus, came to the fore when our Omani team completed the Early Production (experimental) phase. The project has now transferred across to our team in London who are undertaking a Select study for the full field development which is expected to be completed in 2012.

Our work on this project has also led to the award of an EPMS contract by Oman Oil Company Exploration and Production for work on the Abu Tubul field approximately 100 kilometers from the BP fields, where first gas is scheduled for mid-2013.

We are very proud that our work is advancing Oman’s longterm energy security and diversification requirements.”

Jay Ibrahim, Senior VP Hydrocarbons, Middle East Ready... Set... Drill! – Unconventional Gas hq Magazine

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Environmental planning

Total water management

As extraction moves to new countries and regions, access to unconventional reserves has caused some community sensitivity to potential environmental risks. A strategy to select an engineering provider with a Full Field Program Management offering becomes more relevant where investigation into ecological impacts and their management can provide certainty for all stakeholders.

In another CSG to LNG project in Queensland we introduced the first basin-wide assessment of the potential cumulative impacts to groundwater and also provided a comprehensive assessment of all credible CSG water use options. This was based on our specific water management offering to the CSG and shale based industries drawn from our experience with 5,500+ groundwater projects and using our proprietary Economics™ modeling tool – which allows decision makers to identify optimal solutions for profitable sustainability.

In a recent project for Arrow Energy, we were able to assist with the environmental aspects of a CSG to LNG gas project. We identified the optimal solution for the development of the Surat and Bowen Basin CSG fields and provided sufficient analysis to assist Arrow Energy to satisfy the relevant environmental regulatory authorities.

The studies include reviews of the production wellheads, low and medium pressure gathering systems, field and central compression facilities, water management, modularization, project execution strategy and operations. As a result of the positive feedback from regulators Arrow Energy was able to commence the FEED ahead of schedule, saving time and money.

In this project, incorporating 10,000 gas wells, 520 kilometers of pipelines, and an LNG facility, we worked with our customer, Australia Pacific LNG, to develop a water management strategy from initial exploration through to full production. This focused on the design and construction of wells and a drilling program strategy which did not adversely impact local water resources as well as the recycling, reprocessing and reusing of the water produced by the fracking activities.

Our holistic and sustainable approach eliminates the often ad hoc approach to water management arising at project level, and enables the development of long-term strategies to oversee the full asset requirements which ultimately results in the most cost effective and technically appropriate outcomes for our customers.

Fabrication and procurement in China Global Procurement Group (GPG) At a time of unprecedented demand for cost savings, the WorleyParsons GPGs purpose is to provide the most competitive prices and favorable terms for our customer’s procurement items and fabrication contracts.

250 sourcing specialists located throughout our China offices use engineering-with-construction based methodologies to optimize prefabrication and modularization for projects around the world.

Up to 60% of proven cost savings and up to 50% savings on schedules have been achieved on various customer projects. Recently the Bridge to China initiative in Canada saw our fabrication arm WorleyParsons Cord successfully leverage our efficiencies in China, resulting in reductions in onsite labor costs and the reduction in weather related schedule impacts.

With over $1.4 billion in equipment and materials procured in China for various customers in 2011 alone, the GPG model is extending the boundaries of what we call ‘high value engineering’ and is turning the concept of ‘high value project delivery’ into reality.

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hq Magazine Ready... Set... Drill! – Unconventional Gas

The path of demand in the ‘unconventional age’ is hard to predict, but abundant new sources of unconventional hydrocarbons could bring about profound change in patterns of energy consumption.

At a fundamental level, this access to a new energy reserve is having a major impact on long term planning. For example, America constructed several large import terminals for LNG and is now looking to make these same assets LNG export terminals based on discovered unconventional gas reserves, which was unforseen five years earlier.

With so many global reserves of unconventional resources attracting attention, successful monetization of these fields has the potential to shift some historical ‘certainties’ in the energy landscape. It seems like there is at least a possibility that the unconventional resources will make up for the decline in conventional resources.

As such, this is a corner of the energy market that will likely experience heavy investment and create a more balanced geographical distribution of oil and gas reserves and reduce concerns over ‘energy security’.

On the Couch with Dan McGinnis GSL Unconventional Oil and Gas dan.mcginnis@worleyparsons.com

HQ: What are the advantages of unconventional hydrocarbons?

DM: Historically, conventional hydrocarbons – oil and gas – were viewed as low-cost, while unconventional hydrocarbons were an abundant resource, but high cost. Due to the advancement of unconventional hydrocarbon extraction technology, that perception has now reversed. What we are talking about is an affordable, widespread, easy to use, clean fuel source that we weren’t able to access commercially 10 years ago.

HQ: What are some of the challenges for unconventional hydrocarbon customers?

Customers see the challenges associated with delivering successful unconventional gas developments as equally divided between infrastructure and environmental issues – land management, regulation, approvals, water management – particularly water access and disposal and the impact of fracking on underground aquifers, and technological issues drilling and fracking technologies and production costs. Supply chain logistics management and coordinating simultaneous operations on site, also add considerably to the complexity of new developments.

Customers are beginning to realize that they need to utilize proven contractors to support them when entering new markets. The customer’s focus is on the high-cost, down-hole elements of the project – geology, reservoir analysis, well design and completions. So it is critical that the project management of surface field development – logistics, procurement, modularized deployment of equipment, water supply, treatment and disposal – be executed safely, efficiently and on schedule, and not become a project bottleneck.

HQ: How is WorleyParsons placed in the unconventional resource marketplace?

WorleyParsons has been executing unconventional resource projects for nearly 15 years. Full Field Program Management consolidates the best of our capabilities from our infrastructure and environment, hydrocarbons and power sector groups into one holistic offering. This includes our front-end capabilities such as environmental review, approvals, stakeholder engagement, and total water management, combined with a customer collaborative EPCM role structured to mitigate the significant execution risks associated with chaotic field development activities. Our supply chain, modularization and engineering capabilities transform unconventional field development into an efficient ‘lean manufacturing process’, consistently lowering the marginal cost curve, which allows the customer to compete in most pricing environments.

On the Couch hq Magazine

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INTECSEA: technology is our business

INTECSEA is a wholly owned global business within the WorleyParsons Group. Together with fixed structures, topsides, onshore and project delivery capabilities, it has the most comprehensive offering for any offshore application and provides opportunity for seamless interface with onshore facilities.

INTECSEA’s approach is to combine a comprehensive range of specialist skills and engineering disciplines in truly integrated teams to provide system solutions to subsea projects of all sizes – from a relatively simple tie-back or pipeline to world-scale deepwater developments in the harshest environments – anywhere in the world.

25+ years of innovation and ground breaking achievements

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hq hqMagazine Magazine xxxx INTECSEA

Floating Largest FPSO Deepest TLP Deepest spar First deepwater FPU operated with drilling tender

Subsea and control

Pipelines

Risers

Deepest subsea production Longest oil tieback Longest gas tieback First subsea allocation of low meters First 15,000 psi subsea trees Deepest multiphase subsea pumps

Deepest S-lay pipeline Deepest J-lay pipeline Longest offshore pipeline First offshore Arctic oil pipeline First Arctic pipeline leak detection system First piggable wyes  

Deepest subsea production Longest oil tieback Longest gas tieback First subsea allocation flow meters First 15,000 psi subsea trees Deepest multiphase subsea pumps

INTECSEA hq Magazine

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The deep sea of innovation

That’s how we view the wave of technological advances allowing for exploration into deep and ultra-deepwater gas and oil fields which, a decade ago, would have been unfeasible.

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hq hqMagazine Magazine The xxx deep sea of innovation

The projected oil price over the next 20 years, along with the exhaustion of ‘easy oil’, has encouraged independent and national oil companies to invest in these stranded reserves.

WorleyParsons’ leading position in floater innovation means we are able to assist with the selection of a concept for floater production, some of which are the largest man-made structures in the world.

Floating Production Storage and Offloading (FPSOs) This type of floating system is widely used – we have been involved in 70 conventional floaters in 22 countries. The North Sea is one of the busiest areas for FPSOs, as is offshore Australia, Brazil, Asia, the Far East and West of Africa where targeted water depths for oil and gas developments are increasing every year.

Amongst their many advantages, FPSOs are relatively insensitive to topside mass, can store cargo and offer ‘free real estate’ to topside process systems by way of the large deck space available above the storage tanks.

FPSOs can be converted tankers or new builds. Conversions can offer a fast track, cost effective, option to achieve early first oil.

FPSOs can be released from their moorings and moved, so they also have redeployment potential.

Most FPSOs are fitted with weather-vaning mooring turrets, which allow them to turn towards prevailing weather and minimize mooring loads. Those with turrets which are designed to be disconnectable, can sail to safety in case of an approaching cyclone or iceberg.

Semi-submersibles Tend to be chosen for their relatively low motion characteristics and low cost spread mooring systems, which allow for multiple risers without the use of expensive swivel stacks. However, their mooring systems are not disconnectable for harsh environments and they have low, if any, in-hull storage.

Like FPSOs, semi-submersibles can have their topsides installed at the fabrication yard, but unlike FPSOs they are sensitive to topside mass. Semi-submersibles can be wet-towed and offer potential for redeployment.

Tension Leg Platforms (TLPs) Our INTECSEA team has been instrumental in the design of 16 of the 21 Tension Leg Platforms in use worldwide. We designed and executed BP’s Shenzi TLP which, in 2008, was the world’s largest and the first FPU installed in the Green Canyon Block meeting new hurricane criteria.

TLPs are similar to conventional fixed platforms except they float and are maintained on location through vertical tendons, or tethers connected to the seafloor. The tendon installation requires special equipment and handling and the mooring system is unable to release, but the restraint does limit the motion of the hull which means that they are suitable for dry trees. However, TLPs have relatively high costs, are sensitive to topsides mass and have no in-hull storage.

Spars Consist of large vertical cylinders supporting topsides. The deep draft design makes the spar less affected by severe weather enabling the spar to support both subsea and dry tree developments.

INTECSEA has participated in the designs of Genesis, Diana, Medusa, Devils Tower, Front Runner, Constitution, Red Hawk, Holstein, and Mad Dog spars. Key to our success is our specialist design capability in naval architecture, hulls, decks, facility structures and mooring and riser systems along with construction, transportation and installation operations support.

Spars require specialized shipyard fabrication techniques and they are sensitive to topside mass. Because of their length, they require transportation to site horizontally (either by dry or wet tow) followed by up-ending. Because of the need for up-ending, topsides can only be installed offshore.

Riser assessment Each of these four floating structures requires a riser system to connect them to subsea facilities. Risers are a complex aspect of deepwater development. The design of each riser needs to consider such things as flow assurance, expansion/contraction due to pressure and temperature, motions response, stress, bending moments and fatigue.

How to choose the best development option Floating platform choice is a challenging area in the offshore oil and gas industry, as there is no single floating platform solution that is superior for all applications.

Typically, WorleyParsons’ involvement in a floater project might begin with providing a Select study, to determine the optimal solution for the development. We maintain a world class database to assist the economic evaluation of all offshore field development options. Our customers are therefore assured of an unbiased, independent assessment of the best development solution for each project.

The selection can be influenced by reservoir characteristics and infrastructure, which influence the facility, size, number of wells, and whether wet or dry trees are best. The technical evaluation will depend on cost and local compliance requirements as well as component fabrication and system assembly. This can be done by an integrated engineering and construction team that are supported by well-defined yard scheduling. Parallel works such as new topsides require tight work control for optimum preparation before floater arrival.

The deep sea of innovation hq Magazine

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North Rankin 2:

a successful topside installation

North Rankin A platform sailing towards the connection point to North Rankin 2 platform. Image courtesy: Woodside

WorleyParsons is currently working on three of the world’s largest topsides projects – the North Rankin Redevelopment (NR2) Project, the Sakhalin-1Arkutan-Dagi Project in Russia and the Hebron Oil Project in Canada.

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hq Magazine Successful North Rankin 2 installation

The NR2 Project (a joint venture between WorleyParsons and KBR, delivered by EoS) is the first of these major projects to have been completed. The North West Shelf (NWS) Project’s NR2 Project has achieved a significant milestone with the successful NRB topside installation now completed.

The topside’s installation represents the completion of the Project’s fabrication, transportation and installation phase, with work now commencing on the hook-up and commissioning (HUC) phase ahead of start-up in 2013.

Located about 135 kilometers offshore from Karratha on the northwest coast of Western Australia, the North Rankin A (NRA) platform is one of the largest capacity gas production platforms in the world and serves as the central hub of the NWS Project’s offshore gas production system.

The new platform, North Rankin 2 (NR2), stands in 125 meters of water, 100 meters to the west of NRA with the facilities linked by two bridges.

The EoS joint venture project scope for the NR2 Project covers the design and procurement of the new platform as well as the necessary tie-ins to the existing NRA platform.

EoS was initially awarded the contract for the project’s basis of design stage in 2006. This was followed by the awarding of contracts for the front-end engineering design (FEED), detailed engineering design and procurement services.

The two platforms will operate as a single integrated facility known as the North Rankin Complex, making it one of the largest in the world.

From the early stages, communication has been a key factor in the project.

The EoS engineering team worked closely with the clients discipline engineers and production team.

It was important to maintain a close working relationship with personnel from the operations team as they are ultimately those who will operate the plant.

Initially, a thorough review of lessons learned from previous projects were undertaken to ensure all possible problems were addressed during the early design stages.

The float over installation

The sheer size and complexity of the NR2 deck demonstrates WorleyParsons’ people capabilities to support designing and constructing world-class fixed offshore platforms.

“During FEED we set the majority of the performance criteria and dimensional constraints, which allowed Woodside to engage an installation contractor capable of installing this platform,” Chief Naval Architect John Davis said.

The project involved a multi-office execution, based on our workshare model, which enabled us to bring together worldwide resources and expertise in an efficient and cost effective manner for our customer.

The structure was shipped by the world’s largest pontoon, the H851 launch barge, which was modified to suit the dimensional constraints of the jacket while maintaining functionality for topsides installation.

The project was undertaken from five global work centres: Perth, Leatherhead, Beijing, Jakarta and Singapore.

Transfield Worley (TW) Services is engaged in the onshore planning phase and the offshore implementation phase and includes assistance with pre-commissioning and commissioning of relevant systems for the desk’s HUC.

The platform topsides were designed in WorleyParsons Perth office and the fabrication and load-out of the topsides was completed by Hyundai Heavy Industries (HHI) at its South Korean fabrication yard. HHI has also provided components of the topsides including the permanent living quarters.

The jacket (substructure) was designed in KBR’s Leatherhead office in the United Kingdom and constructed by PT McDermott Indonesia in its Batam yard in Indonesia.

The NRA platform was assembled onsite (offshore) with many of the 1,500 ton sections lifted into place by crane barges and connected together over an extended hook-up period.

For NRB, the topside was designed and constructed as a single integrated floatover deck.

The method allowed final preparation of facilities and services and pre-commissioning to be performed safely on dry land or at the quayside, rather than onsite.

“Despite having to overcome the challenges of working across various locations, time zones and languages, we have achieved outstanding outcomes and implemented a range of industry leading practices and new initiatives.”

Digby Crisp, Project Manager

The onshore phase has now begun and covers the preparation of the work packs and materials for the hook-up pre-commissioning and commissioning of the platform.

The HUC workforce is being accommodated in a floating accommodation support vessel (ASV) bridge linked to the platform. The vessel accommodates up to 425 people, which includes the ASV crew, catering, operations personnel, commissioning technicians and the hook-up work force including, riggers, scaffolders, welders, mechanical, electrical and instrument fitters etc. TW are supplying up to 120 people per swing on a two week on two week off roster.

Transfield Worley Project Manager Digby Crisp said this will be the first time that Woodside has installed a bridge linked platform adjacent to an operating platform and Woodside will be gradually bringing gas on line in stages to ensure a smooth process.

“The initial tasks are the connection of the piping across the bridges to NRB, the installation of the piping and pumps at the caissons, the checking and start-up of the power, instrumentation and utilities systems and the alignment of the mechanical rotating equipment,” he said.

“Once the utility systems, the power and control systems are operating then hydrocarbon piping systems will be leak tested and finally the gas introduced into the facilities and the compressors started up and commissioned”.

Successful North Rankin 2 installation hq Magazine

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Office intel Spotlight on OTC More than 89,000 people from around the world converged in Houston, Texas for the annual Offshore Technology Conference (OTC), which was, according to organisers, the largest and most successful in the history of the event.

Founded in 1969, the OTC is the premier event for the development of offshore resources in the fields of drilling, exploration, production and environmental protection.

For our diverse and geographically dispersed teams, OTC was an ideal opportunity to catch up with global customers and partners in an inspiring atmosphere where the focus is technological innovation. The social aspect was enjoyed as well, as shown by our famous Wine Tasting Party, which according to insiders, continues to be THE social event of the conference.

“The sheer scale of OTC this year confirms that offshore is a very exciting place to be for the foreseeable future”.

Mike Paulin, Operations Director for Canada

This year’s event featured eight panel sessions, 29 executive keynote presentations at luncheons and breakfasts, and 300 technical papers. Speakers from major, independent, and national operators; global government officials; and academia presented on the current issues and future directions of the industry. WorleyParsons and INTECSEA were well represented and delivered the following papers: Evaluating the Effectiveness of Offshore Safety and Environmental Management Systems - Ken Arnold Flow Assurance and HIPPS Design - Scott Bufton Simulation Driven Design for Offshore Oil and Gas Field Developments - Phil Cooper North Rankin Redevelopment (NR2) Project - Paul Dragovic Arctic Design Concepts & Challenges - Mike Paulin Pipeline Route Selection - John Brand Delivering Offshore Gas to Regional Mid-Markets: Assessing the Comparative Merits of Floating LNG and CNG Transport Routes - Joe Verghese Fiber Optic Leak Detection Systems for Subsea Pipelines - Glenn Lanan

Mike Paulin, Operations Director for Canada, presents on Arctic design concepts and challenges.

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hq Magazine Office Intel

Future Directions Forum in Shanghai WorleyParsons China hosted a successful second ‘Future Directions Forum’ at the Intercontinental Shanghai Puxi Hotel on June 18, 2012, where more than 140 industry experts from over 40 energy and resources companies participated in this event.

The ‘Future Directions Forum’ offers a unique opportunity for industry leaders to network and share knowledge as well as leading practices to improve business, operation and project performance.

‘Productivity through Innovation’ was selected as the theme of this year’s forum. Case studies were presented on topics such as safety through design to build, strategic sourcing, project portfolio management and China high value engineering, which provoked lively discussion and reaction among the audience.

As the largest international engineering and project management company in China, WorleyParsons China aims to continue sponsoring the successful ‘Future Directions Forum’ which embraces innovative front-end practices and solutions, as well as providing a platform to facilitate communication, networking and learning across the industry.

Setting a new Russian benchmark for learning WorleyParsons Chief Technical Advisor Mikhail Rudin has set a new benchmark for learning in Russia with the release of a new reference book ‘Refineries and Petrochemicals Plants,’ co-authored with Vladimir Kapustin and Anton Kudinov.

Recently launched at the Oil and Gas University in Moscow, over 100 specialists and lecturers attended the debut, with the book being exulted to ‘instant modern classic textbook’ status for colleges and universities.

WorleyParsons Bahrain officially open WorleyParsons celebrated the opening of its new office in Bahrain this month, inaugurated by the Minister of Commerce and Industry, H.E. Dr. Hassan Fakhro.

The new office, located on the 12 floor of the Gulf Hotel Executive Offices, will accommodate over 200 people, enabling the location to increase its services offering across the five phases of the project asset lifecycle.

With a strong commitment to localization by employing a majority of Bahraini staff, the office is set to build up additional capabilities through becoming a Center of Excellence for Improve, Chemicals and Instrumentation.

Best in show at prestigious Golden Valve Awards WorleyParsons received the Best of Show award in the 12th annual Intergraph Golden Valve Awards, for the intricately detailed view of a process facility produced using SmartPlant 3D, SmartPlant P&ID, SmartPlant Review, SmartPlant Electrical, SmartPlant Instrumentation and SmartPlant Foundation.

Each year Intergraph hosts the Golden Valve Awards, recognizing the most innovative and well-executed uses of the software they provide. The winners were announced on June 4, 2012, in Las Vegas, Nevada, at the Hexagon 2012 International User Conference which was attended by the cream of technical organizations from around the world.

Office intel hq Magazine

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Engineering the future in East Timor

“Getting things done is very people driven here, rather than process driven.

Timor rewards those who are flexible.”

Martin Hay, WorleyParsons Timor Leste Country Manager.

The rewards for being on the ground early and being ‘flexible’ are considerable with the country requiring significant infrastructure in the short to mid-term and an emerging oil and gas industry providing longer term opportunities.

ConocoPhillips (Bayu Undan - Gas/Condensate) and ENI/BlueWater (Kitan - Oil) are already operating in the waters between Australia and Timor Leste; with Greater Sunrise, Chudditch and Kelp Deep all on the horizon, and significant offshore areas that are yet to be explored. There’s also considerable onshore oil potential – Timor Leste is one of the few places left in the world that oil literally seeps from the ground. There are 30 known sites on the south coast where this occurs and this market hasn’t even been tapped as yet.

The Timorese government is well aware of the potential financial opportunity generated; with a sovereign wealth fund created in 2005 to conserve the petroleum revenue for future generations. It currently holds approximately US $11 billion, with some forecasters estimating that by 2040, the inflows could reach as high as US $70 billion. “The government also understands the country is in desperate need of infrastructure.

That’s where the revenue gained from the country’s petroleum supplies will be directed,” Martin said.

“Off the back of the successful delivery of the South Coast Environmental Impact Assessment (20 Mtpa LNG facility, oil refinery, port and industrial estates), WorleyParsons will soon be working closely with Timor Leste’s new national oil company, Timor GAP, on a portfolio of projects the promote national energy security and growth in the oil and gas sector. This will be an exciting early engagement opportunity with a customer with so much potential.”

“Along with the development of the Hydrocarbons industry, our team will be looking to assist in the development of key infrastructure such as the upgrade of the domestic water supply and wastewater management, the development of a national power grid, development of the ports and harbours on the south coast and the design and construction of necessary roads and bridges — all with the perspective of sustainable development ensuring long-term benefits for the people of Timor Leste”.

In line with this sustainable approach, WorleyParsons already has 12 Timorese staff on the team, and is looking to hire another nine shortly, with the intention to employ up to 35 locals in the next 18 months to work on a broad base of projects.

“As we gear up to take on some of the projects on offer we want to be able to recruit more local engineers and designers.

With a long term view, we are also working with the Dili Institute of Technology (DIT) to improve the quantity and calibre of graduates, to ensure a ready team of potential candidates into the future.

But more than this, we are working with the Institute to build its research capabilities so we and others can utilise those research capabilities going forward in the development of Timor Leste.”

Though the future looks challenging, it will be a very interesting time to be in Dili.

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hq Magazine Engineering the Future in East Timor

Recent appointments Odette Eng

Joe Nash

Global Refining Select Manager

General Manager Malaysia

Odette has over 30 years of Global Downstream and Refining experience and business training working for major refining technology licensors such as Unocal, UOP and KBR. Odette will expand our established Select group into the area of Global Refining at WorleyParsons. Understanding the refining markets, identifying trends and needs, formulating technical solutions, developing tools and practices, articulating our differentiators and establishing a solid network of clients and alliance partners will become the focus of the Select group. As part of WorleyParsons’ long term strategy, Odette will develop a strong Global Refining Select team that will enhance WorleyParsons capabilities supporting Global pursuits as well as other areas of the hydrocarbon business.

Joe arrives in Malaysia from his most recent posting in London, where he managed the Sulphur Technology Group.

He has been with WorleyParsons for over five years, starting as a Senior Project Manager in Monrovia, California.

This is Joe’s second expat position with WorleyParsons, and his first in Asia, adding new challenges and a new dimension to his broad background in the petroleum industry.

Angie Slavens

Global Sector Lead, Sulphur Technology

Angie Slavens has been appointed to the role of Vice President and Global Director for the Sulphur Technology Subsector, transitioning from her role as Business Development Director for the group, in which she served over the past year. Angie has 16 years of experience in the oil and gas industry, primarily focused on sour gas treating and sulphur recovery. Prior to joining WorleyParsons, Angie was responsible for managing Black & Veatch’s global sulphur technology business, during which time she established a reputation as an active contributor to the international sulphur industry, publishing and presenting numerous technical papers and articles.

Jan Van Willigen

Senior Vice President of Hydrocarbons USAC & LAM

Jan Van Willigen has been appointed to the role of Senior Vice President of Hydrocarbons USAC and LAM. Jan will have overall accountability for all Hydrocarbons’ activities in this geographical area, and will continue in his additional role as our global lead, on our corporate strategic initiatives focused on customer engagement.

John Manning

Global Subsector Lead, Floating Production Systems

John Manning has been appointed Global Subsector Lead (GSL) for the Floating Production Systems subsector of our Hydrocarbons business. He brings over 35 years experience in marine industry and more than 15 years experience in offshore hydrocarbons. Covering FPSOs, TLPs, SPARs and semi-submersible type structures, this segment of the global offshore oil and gas market continues to experience significant growth as developments move into deeper water.

A key part of the John’s role is to represent the company to the market and to harness the best of the company’s capability when tendering and executing our projects. In this capacity, John will interact strongly with INTECSEA’s Floating Systems group, WorleyParsons’ Offshore Topsides subsector and the LNG/FLNG subsector.

Richard Luff

Senior Vice President, INTECSEA, EA

We are pleased to announce the appointment of Richard Luff as Senior Vice President for INTECSEA in the EA region. In his new role, Richard will be responsible for the growth and performance of our four current operations in Woking, Delft, Cairo and Aberdeen, and for further developing our presence in Russia, Eastern Europe and also West Africa.

Recent appointments hq Magazine

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Asia Pacific Graham Hill Senior Vice President

E: graham.hill@worleyparsons.com

Canada Mike King Senior Vice President

E: michael.w.king@worleyparsons.com

USA, Caribbean and Latin America Jan Van Willigen Senior Vice President

E: jan.vanwilligen@worleyparsons.com

Europe, Middle East, North Africa & India and Sub-Saharan Africa Jim Osborn Senior Vice President

E: jim.osborn@worleyparsons.com

Sub-Sectors and Business Lines Andy Cole Senior Vice President

E: andy.cole@worleyparsons.com

Global Hub Local Office

hqmagazine hydrocarbons quarterly

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