MARCH 2016 - MAY 2016 • ISSUE 15
EXCLUSIVE INTERVIEW WITH GINA RINEHART ROY HILL HISTORIC FIRST IRON ORE SHIPMENT AUSTRALIA PACIFIC LNG FIRST LNG SHIPMENT AOG 2016 A CONTINING SUCCESS
Editor’s Letter Even though the oil, gas and mining markets are still proving to be quite challenging, there are some great things happening in our energy and resources sectors. We congratulate Mrs Gina Rinehart and the Roy Hill management team for sending off their historic first shipment of iron ore from Port Hedland in December 2015. We also congratulate Australia Pacific LNG for sending off its first liquefied natural gas cargo departing from its LNG facility on Curtis Island, near Gladstone in January 2016. Plus, congratulations to the Gorgon LNG Project team on Barrow Island, Western Australia, for the project’s first shipment of liquefied natural gas in March this year. We remain on track to become the world’s largest LNG exporter by 2020 and 15 new projects worth around $13 billion have been approved for investment in Australia’s resources and energy sectors since November 2014.
LEN FRETWELL Publisher / Managing Editor Digging & Drilling Australasia and Race&Restore Magazine
The Gas Market Report 2015, released in March, 2016, by the Chief Economist of the Department of Industry, Innovation and Science, highlights that the long term outlook is positive for Australia’s gas exports, with Australia to benefit from the growing demand of emerging economies in the Asian region. The report states that despite current challenges, including downward pressure on commodity prices, the fundamentals remain strong for the gas sector, as the International Energy Agency forecasts global gas demand to increase by around 50 per cent to 2040. In China, total gas consumption is expected to more than double by 2030. The report also states that India’s liquefied natural gas (LNG) demand is expected to nearly double by 2019-20, while it seeks to provide reliable electricity to more than 300 million people for the first time. More broadly, nonOECD countries use around one quarter of the electricity demand of OECD countries on a per capita basis. As these countries develop, living standards and electricity consumption will rise, driving increased demand. The report outlines that Australia’s reputation as a stable and reliable supplier of LNG and our proximity to key markets provide us with a competitive advantage to meet this demand, which is expected to result in Australia providing 40 per cent of both Japan and China’s LNG and 25 per cent of South Korea’s by 2019-2020. AOG 2016 staged for the 35th time was highly successful. Strong event pre-registrations and an extremely positive response from exhibitors and conference attendees were highlights of this year’s Australasian Oil & Gas Exhibition & Conference. While the global oil and gas sector has been hit hard by low crude oil prices, AOG again has shown its world rated status with almost 10,000 attendees visiting the PCEC to see 480 exhibitors from 24 different countries this year. During the opening session of AOG this year, we learned of the Commonwealth Government’s approval to locate the headquarters of a new oil, gas and energy resources industry growth centre in WA, as part of the Australian Government’s $248 million Industry Growth Centres Initiative. The newly appointed Chairman of this centre, Mr Ken Fitzpatrick, announced the centre will be known as the National Energy Resources Australia (NERA) growth centre and would focus on boosting Australia’s energy sector competitiveness, productivity and innovative capacity. NERA will aim to identify opportunities to reduce Government regulatory burden, increase collaboration and commercialisation, improve capabilities to engage with international markets and global supply chains, and further enhance management and workforce skills. In a recent BIS Shrapnel report, Chief Economist Dr Frank Gelber stated that the main reason Australia has yet to spiral into a depressed economy is due to strong and sustained growth in resource production and export volumes (approximately 8% per annum in each of its past three years), recently aided by surging education and tourism exports. He pointed out that Australia’s position as a low-cost, bulk commodity producer has lifted output levels and helped ride out the worst of the downturn. Dr Gelber went on to mention that the low cost producers in the Pilbara are playing a major role in keeping the nation’s economy buoyant. We are always looking for interesting and innovative energy and resource sector news and I invite energy and resources sector members to contact me directly with any industry news that may be of interest to our readers. I look forward to receiving your feedback. Best regards
Len F retwell Len Fretwell Publisher/Managing Editor
www.diggingdrilling.com
Race and Restore
WHAT’S IN THIS ISSUE »
IN THIS ISSUE 3 EDITOR’S LETTER 6 MOMENTS IN PICS: AOG 2016 PERTH 10 NEWS IN BRIEF: OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER 12 EXCLUSIVE INTERVIEW WITH GINA RINEHART 14 ROY HILL HISTORIC FIRST IRON ORE SHIPMENT 20 AUSTRALIA PACIFIC LNG FIRST LNG SHIPMENT 27 SHELL PRELUDE FLNG PROJECT
DIGGING & DRILLING AMP TOWER - LEVEL 28 AUSTRALASIA 140 ST GEORGES TERRACE PERTH WA 6000 TEL: +61 1300 284 637 FAX: +61 (8) 9300 9435 FEEDBACK INFO@DIGGINGDRILLING.COM NEWS INQUIRIES EDITOR@DIGGINGDRILLING.COM ADVERTISING INQUIRIES LEN.FRETWELL@DIGGINGDRILLING.COM • MOBILE: 0417 001 080 EDITOR WRITERS GUEST WRITER SPECIAL FEATURES
LEN FRETWELL LENA KOZAK, STEPHEN DAWSON ANDREW BURRELL EMMANUEL SOLOMON
GRAPHIC DESIGNER BRANDON WANG SUBSCRIPTION SUBSCRIPTION@DIGGINGDRILLING.COM PUBLISHING DIGGING AND DRILLING IS A TRADING NAME OF LF FAMILY TRUST INFORMATION ABN: 97 893 623 301 VISIT US AT WWW.DIGGINGDRILLING.COM FOLLOW US ON TWITTER @DiggandDrill SISTER PUBLICATION RACE & RESTORE MAGAZINE RACE AND RESTORE COVER L TO R: TAD WATROBA, EXECUTIVE DIRECTOR, HANCOCK PROSPECTING, MRS GINA RINEHART, CHAIRMAN, HANCOCK PROSPECTING & ROY HILL, GINIA RINEHART Digging & Drilling Australasia welcomes comments and suggestions, as well as information about errors that call for corrections. We are committed to presenting information fairly and accurately. Disclaimer: Reasonable care is taken to ensure that Digging & Drilling magazine articles and other information are up-to-date and accurate as possible, as at the time of publication, but no responsibility can be taken for any errors or omissions contained herein. The opinions expressed are those of the authors and do not necessarily reflect the views of Digging & Drilling Magazine. The publisher, editors, contributors and related parties shall have no responsibility for any action or omission by any other contributor, consultant, editor or related party.
Moments
MOMENTS IN PICS »
AOG 2016 PERTH
MARCH MARCH 2016 2016 - MAY - MAY 2016| 2016| DIGGING DIGGING & DRILLING & DRILLING MAGAZINE MAGAZINE 7 7
AOG 2016 A CONTINUING SUCCESS Strong event pre-registrations and an extremely positive response from exhibitors and conference attendees were some of the highlights of a highly successful 2016 Australasian Oil & Gas Exhibition & Conference (AOG).
Highly regarded oil and gas industry executive, Ken Fitzpatrick – who will Chair NERA, used AOG as the forum to launch the new Perth-based development, which is part of the Australian Government’s $248 million Industry Growth Centres Initiative.
Staged for the 35th time, AOG ran from February 24 - 26 at the Perth Convention and Exhibition Centre (PCEC).
Mr Fitzpatrick announced to a large AOG 2016 Official Opening session audience that:
While the global oil and gas sector has been hit hard by low crude oil prices, AOG again has shown its world rated status with almost 10,000 attendees visiting the PCEC to see 480 exhibitors from 24 different countries this year.
• A new CEO, Miranda Taylor, formerly with APPEA – has a been appointed
Australia’s largest annual oil and gas event, AOG 2016 kicked off with an inaugural “AOG Golf Day” on the eve of this year’s event. Interested sponsors and participants are already enquiring about a 2017 AOG Golf Day following a strong turnout and fun competition in ideal conditions at Joondalup Resort Golf Course this year. The AOG Exhibition and Conference kicked off with a bang the next day with a steady stream of attendees passing through the registration desks, a full house attending the official AOG Media Breakfast, and the Federal and Western Australian Governments utilizing the AOG Opening Session to make a number of important announcements on the National Energy Resources Australia (NERA) growth centre.
• A new senior management team and Board of industry leaders appointed • The headquarters for NERA will be co-located with the WA Energy Research Alliance at the Australian Resources Research Centre at Technology Park in Perth; and • There will be Nodes in Brisbane and Adelaide planned for activation in 2016. The need for improved collaboration between operating companies and suppliers - as well as government - was a dominant topic over the next two days of the AOG Conference. Bernadette Cullinane, Accenture’s Managing Director of Energy in Australia and a strong proponent of closer collaboration, told
the AOG Conference that the country may miss out on some critical opportunities if the industry doesn’t take up the call for collaboration and take advantage of a number of technical innovations. She told an official AOG Media Breakfast that the service sector should insist on closer collaborative partnerships as there is a great deal of inefficiency in terms of communication and how work is packaged, with each operator seeking a company specific optimum
The next three days saw continued strong exhibition attendance and a number of critical sessions providing industry information on a number of issues at the two-day conference and the AOG Women networking event on the Friday. Over 600 Conference delegates were privy to presentations from leading oil and gas companies including Shell, Chevron, Inpex and Woodside. John O’Hare, General Manager Marine & Defence, Oil & Gas, AMC with the Western Australian Department of Commerce, an AOG 2016 Principal Sponsor, said that the success of the event is vital to the Western Australian economy.
In a presentation that mirrored the AOG 2016 theme, Lloyd’s Register’s Australasia Compliance Technical Manager Jeff Baker, “AOG delivers every year for Western Australia and for the local told AOG delegates that the way forward for the industry is to oil and gas services sector,” Mr O’Hare said. maintain a sharper focus on collaboration. AOG 2016 Event Director for Diversified Communications, Bill “Clearly, difficult market conditions have brought a focus on Hare, said the event organisers were very pleased with the strong operating costs and efficiencies more than on operating turnout for this year’s event and were now looking forward to a enhancements,” Mr Baker told the Fixed and Floating Offshore 36th AOG in 2017. Structures session on the first morning of AOG 2016. “Despite the industry’s difficulties at the moment, there was a “The urgent need for cost reduction is in understanding how very positive feeling across the venue at this year’s event. We innovative technology and methodologies can drive efficiency have received a good response from exhibitors and attendees and value,” he added. and a number of key exhibitors have already indicated they will be taking up space again next year,” Mr Hare said. Mr Baker said that research by Lloyd’s Register Energy suggests that the industry’s future lies in collaboration, innovation, data For details on AOG 2017 please go to http://aogexpo.com.au/ technologies and crossover technologies from other industries.
NEWS IN BRIEF »
OIL, GAS & MINING NEWS HIGHLIGHTS FOR THE QUARTER
GORGON LNG PROJECT PRODUCES FIRST SHIPMENT The Gorgon LNG Project team on Barrow Island, Western Australia, sent off the project’s first shipment of liquefied natural gas (LNG) in March 2016. The $70 billion plus project is the largest single private investment ever undertaken in Australia and has created more than 10,000 jobs in the construction phase of the project alone. This significant contribution to the Australian economy will continue over the project’s expected 40-year plus lifespan. Gorgon is operated by Chevron in joint venture with ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Chubu Electric Power. The majority of gas from Gorgon will be exported as LNG to Asian markets with the remainder being supplied to domestic markets in Western Australia. The Gorgon project is an example of the strong innovation in Australia’s resources sector. The project includes the world’s largest commercialscale carbon capture and storage initiative, reducing the project’s emissions by around 40 per cent or 3.6 million tonnes per year. This is nearly six times greater than any other project in the world. It also has the largest sub-sea infrastructure ever built, with more than 800 kilometres of pipelines installed.
DEEPOCEAN NETS POST-LAY TRENCHING JOB IN AUSTRALIA DeepOcean 1 UK Ltd., a subsidiary of DeepOcean, has been awarded a contract for the provision of post-lay trenching and survey works in Australia. Works will be performed from DeepOcean’s DPII MSV Volantis using the 2,800hp jet trencher UT-1. This contract for post-lay intervention works is scheduled for Q4 2015 and will see DeepOcean’s Volantis mobilize from current works offshore Malaysia to Australian waters. Tony Stokes, Managing Director of Asia Pacific & Middle East said: “We are extremely pleased to receive this award in Australian waters. This project highlights the requirement for such front-end trenching technology in the region and the demand for expertise found within DeepOcean and the UT-1. We look forward to a successful campaign and growing our presence in Australian waters”
SBM OFFSHORE NETS BROWSE FLNG TURRET FEED SBM Offshore has been awarded the Front-End Engineering and Design (FEED) contract from Technip for three, large-scale turret mooring systems associated with the proposed Browse Floating Liquefied Natural Gas (FLNG) Development in Australia. The contract awarded to SBM Offshore covers the FEED elements of the proposed Browse FLNG Development’s turret work. The three, large-scale turrets are expected to be designs similar to and slightly larger in size than the Shell Prelude FLNG turret that SBM Offshore was awarded in 2011 and whose last module was recently delivered from the construction yard in Dubai. Integration with the Prelude facility in Korea is currently ongoing, the company said. 10 DIGGING & DRILLING MAGAZINE MARCH 2016 - MAY 2016
The Browse project will incorporate the lessons learned by Shell, Technip Samsung Consortium and SBM Offshore in the design and construction of Shell’s Prelude FLNG project in order to maximize efficiencies in replicating the Prelude FLNG solutions for the three Browse FLNG facilities. The proposed Browse project, operated by Woodside Energy Ltd., is located 425 kilometers north of Broome in Western Australia. The project’s reference case is based on three FLNG facilities to develop the Brecknock, Calliance and Torosa fields in the Browse Basin and is subject to final investment decision targeted for the end of the FEED in the second half of 2016.offers opportunities for control not previously possible in CETO 5 and earlier generations of the technology.
ROYAL COMMISSION GIVES THUMBS UP FOR INCREASED URANIUM FUTURE IN SA Uranium mining gets the tick but Royal Commission finds it over-regulated Enrichment gets the tick multiplying value of uranium mining fivefold Nuclear Power gets the tick for helping combat carbon emissions and potentially a role in Australia’s energy future 。 The South Australian Chamber of Mines and Energy (SACOME) welcomes the release of the tentative findings of the Nuclear Fuel Cycle Royal Commission, which draw upon over 250 public submissions including 128 expert witnesses and the advice of distinguished committees, including radiation and socio-economics experts. Jason Kuchel, Chief Executive of SACOME said “The Royal Commission has scrutinized the evidence together with current regulation and South Australia’s experience in uranium mining and have determined it would be beneficial to increase our role in the nuclear energy fuel cycle.” The Royal Commission found: • By 2040 South Australia’s uranium exports could triple up to 15,000 tonnes per annum. • The increase in mining could result in around $300 million to GSP with 800 additional full time workers and significant benefits to regional communities. • Significant value could be derived from local processing of uranium into fuel, particularly through a fuel leasing program. • Current administrative and regulatory processes are sufficient to manage any risks. • Dual environmental approvals currently required for uranium mining have increased costs and timeframes for regulatory approval and are not required. • 11,000 containers of uranium oxide have been exported from South Australia to date with no adverse impacts to workers, the public or the environment. SACOME put forward its submission to the Royal Commission in August last year, outlining the world class industry that exists in South Australia and the opportunities that may arise from an expansion into the nuclear fuel cycle. The gold standard of South Australia’s uranium industry including the mining, processing and export chain, have been confirmed today by the Royal Commission’s findings.
Hon. Michael Mischin MLC Attorney General; Minister for Commerce
As Minister for Commerce, I have welcomed opportunities to observe the technological innovations being applied across the oil and gas sector. In February, I had the pleasure of attending my third Australasian Oil and Gas Exhibition and Conference (AOG), which showcases the local services available to the oil and gas sector. The AOG has become a regular and important platform for international investment and business development which this year saw over 10,000 attendees and almost 500 exhibitors with an impressive display of skills, equipment and services. Despite a relatively small population of some 2.6 million people, Western Australia can be proud of its accomplishments in the delivery of oil and gas equipment and services. Whilst sector activity has been hectic in recent years at a local level, globally international industry clients are increasingly seeking complete or integrated solutions and production systems. This sees reservoir extraction and process technologies, equipment manufacturing and aftermarket capabilities all delivered through a single supplier or through collaborating partners. The Western Australian Government works to facilitate collaboration, build economic infrastructure for common use and support local industry capacity, capability and competitiveness. For more than two decades, significant investments by this State and the Commonwealth have supported collaboration in local research, development and education in offshore gas technologies. These investments have attracted world class specialist skills to Western Australia including in geomechanics, exploration targeting, gas processing and computational dynamics. One enduring collaboration led to the formation of the WA Energy Research Alliance (WA:ERA), in 2003, between the Commonwealth Scientific and Industrial Research Organisation, the University of Western Australia and Curtin University, and early partnerships saw Woodside and Chevron and later Shell join in collaboration. In 2012, with Commonwealth support, the National Geosequestration Laboratory was located alongside WA:ERA at Technology Park, Bentley, to deliver innovative research solutions for Australia’s carbon storage. During the opening session of AOG this year, I was delighted to learn of the Commonwealth Government’s approval to also locate the headquarters of a new oil, gas and energy resources industry growth centre alongside the WA:ERA. The newly appointed Chairman of this centre, Mr Ken Fitzpatrick, announced the centre will be known as the National Energy Resources Australia (NERA) growth centre and would focus on boosting Australia’s energy sector competitiveness, productivity and innovative capacity. Specifically, NERA will aim to identify opportunities to reduce regulatory burden, increase collaboration and commercialisation, improve capabilities to engage with international markets and global supply chains, and further enhance management and workforce skills. Despite a lower output this year, we can remain confident in our economy, but not complacent, and continue to collaborate and work diligently to support our technological evolution and society’s longterm prosperity. This is also an opportune time to consolidate our existing enterprises and energetically explore new business opportunities. You can be assured that I will remain alert to ways in which we can reduce the cost of doing business in Western Australia and attract new opportunity and investment into this sector.
Hon. Michael Mischin MLC ATTORNEY GENERAL; MINISTER FOR COMMERCE
FEATURE ARTICLE»
Mrs Gina Rinehart Exclusive Interview
Our team congratulates Mrs Gina Rinehart for recently being awarded ‘Miner of the Decade’ by the Sydney Mining Club, Momentum ‘Most Inspiring Business Woman’, Australian Mining’s ‘Contribution to Mining’ award and for sending off the historic first shipment of Roy Hill Ore from Port Hedland in December, 2015. We thank Ms Rinehart for taking time out of her busy schedule to answer some questions about the Roy Hill project for this exclusive D&D Australasia magazine interview. D&D: What were the key challenges in developing the Roy Hill project? Gina Rinehart: There were many tough years and a number of significant challenges that had to be overcome to bring the project to fruition. In the beginning, not only was the company short of money for such a substantial Greenfield development, but this coupled with the most knowledgeable iron ore company in the Pilbara at the time deciding that the Roy Hill area was not of value created huge reservations among professionals on our team, and involved with the project. However, I shared my father’s vision and
further challenges Roy Hill faced was overcoming the very inaccurate media including that Roy Hill had been a significant driver of the deflationary pressure on the iron ore price. This of course was a nonsense, with the ore price crash coming in in 2014, and continuing in 2015, pre Roy Hill even exporting one tonne! In the world global iron ore context of hundreds of millions of tonnes exported annually, Roy Hill’s small first shipments and the fact that Roy Hill’s eventual 55Mtpa production yet to be reached, could hardly be attributed as a substantial contributor to the deflationary pressure on the iron ore price.
desire for northern development. Financed by a trickle
Mega projects of this scale do not happen without
of money from our company our exploration programme
money being invested. The Project simply would not
carried out substantial work, and eventually Hancock
have happened without achieving the record $7.2 billion
prospecting discovered and proved up the deposits
capital raising. For a project the size of Roy Hill, the
that this great project is based on today. Being a new entrant to the Australian iron ore industry in an ultra-competitive iron ore market, at a time of global uncertainty and declining commodity prices would be viewed by many as an insurmountable challenge,
banks preferred to see us with partners of substance. We achieved such partners, partners who like us, took on still significant risk, given this project was mainly a Greenfield project, plus all the risks a mega project involves, including government approvals risks.
but our approach from day one at Roy Hill has been
Our partners, Marubeni Corporation, POSCO and China
to develop a business model that is cost-driven and
Steel also committed to be customers with over 50% of
focussed on margins. our focus is on sustained, low
Roy Hill’s 55 million tonne output committed to them.
cost production of iron ore which is consistent in quality. Commodity markets will go up and down, but as a
Usually only much larger companies than our private company can take on such investments and
margin focused business we have the objective of
commitments – but the banks supported us, and me.
maximising the return for every tonne of ore we produce,
Our mega financing with 19 of the world’s largest banks,
throughout the demands of the market cycles.
including the 11 largest banks in the world, and 5 Export
Credit Agencies, gained international acclaim, winning
that a relatively small company such as Hancock
a number of financing awards.
Prospecting, with an exceptionally small, but hard
The US7.2B debt financing is the largest project
all the government red tape, as well as take on and
financing for a largely Greenfields mainland mining development in the world. It took about 2 years of
working, executive team, has been able to get thru complete a project of this sheer size and complexity.
blood sweat and some tears to get the deal over the
In terms of ensuring that projects like Roy Hill continue
line before it closed in April 2014.
to be developed in Australia the government and media
To make it harder still, we were racing against the clock
cannot continue to carry enormous government
to get the project financed and built, after a competitor had caused delays with rail route access across their tenements. This meant that we didn’t have the luxury of the usual approach where the full equity and debt funding package is put in place before any substantial work commences. The partners were faced with the challenge and substantial risk that we would need to start building using our equity funds before we had finalized the debt component of the financing. This provided an
need to understand that Australian export industries burdens, the costs and delays of government licences, approvals, permits and compliance must be cut, significantly and urgently, without doing so, our delinking investment, declining exploration, declining small business openings, will continue to decline. Australia needs to understand that there is nothing we can do about international prices and if we don’t keep our costs down and export competitively, other nations will.
immovable deadline and timeframe for the financing,
My father, Lang Hancock, through his discoveries and
and more than a little bit of motivation for some of us
determination to overcome bureaucracy to enable the
and at times what felt like blow torch type pressure!
benefit of his discoveries, changed Australia’s future.
Projects of this scale cannot happen without investment, a preparedness to take on significant risk and the ability to face and deal with challenges. The Roy Hill story is a remarkable story, the journey to becoming the largest iron ore mine in Australia – a vast mega project that will earn export revenue for Australia for 20 years or more. And even more remarkable when you consider that I was unanimously advised back in the early 1990’s not to take up the Roy Hill tenements which BHP had chosen to discard. It is also rare for executives to see a prospect all the way through from prospect to becoming a major mining
Since the first significant exports were achieved from the Pilbara in the latter half of the sixties, the WA iron ore export industry has earned a staggering more than $460 billion plus in export earnings, and in the process raising living standards across our country. Imagine where Australia would be without the $460 billion plus contribution from the iron ore industry alone, let alone the rest of the mining and related industries. How much more debt would our record debt country be in without the staggering contribution from our resources industries? We’d have surpassed the Greece tragedy years ago.
project, and executive director Tad Watroba and I have
How does Australia achieve the next mega-project
had that incredible experience 4 times now, the latest
after Roy Hill if no one is willing to invest money, go
with Roy Hill.
through the many risks we did, contend with the more
D&D: How do we ensure that projects like Roy Hill continue to be developed in Australia? Gina Rinehart: Mega projects like Roy Hill take investment, risk, great effort and years to progress through the stages of resource evaluation, prefeasibility, bankable feasibility, partnering, financing and eventually construction. It is remarkable
than 4000 permits, approvals and licences required, even before construction! How does this off-putting expensive government burden in high cost Australia help the many related industries and businesses involved with the mining industry? Put simply, it does not. And this can be seen from the dangerous record of our declining exploration and declining investment in resources projects.
Interview by Len Fretwell and Lena Kozak
MARCH 2016 - MAY 2016| DIGGING & DRILLING MAGAZINE 13
Roy Hill Celebrates Historic First Shipment
Hancock Prospecting Pty Ltd and Roy Hill Holdings Pty Ltd are pleased to announce the historic inaugural shipment from Port Hedland of low phosphorous iron ore from the Roy Hill mine on the MV ANANGEL EXPLORER bound for POSCO’s steel mills in South Korea. Mrs Gina Rinehart, Chairman of Hancock and Roy Hill Holdings Pty Ltd, said “The Roy Hill mega project is the culmination of hard-work from the dedicated small executive and technical teams at Hancock and more recently by the entire Roy Hill team.”
able to take on and complete a project of this sheer size and complexity.” “The Roy Hill Project has recorded many achievements already and with the first shipment it will also hold one of the fastest construction start-ups of any major greenfield resource project in Australia. This is a considerable achievement, and although the media refer to a contractor’s date for shipment, it remains that the shipment still occurred ahead of what the partners schedule had planned in the detailed bankable feasibility study.”
“Given that the mega Roy Hill Project was a largely “The performance on the construction gives great configreenfield project that carried with it significant risks dence we can achieve performance as a player of interIcthys Field Development and considerable cost, it is remarkable that a relatively national significance in the iron ore industry. To put the small company such as Hancock Prospecting has been scale of the Roy Hill iron ore project into perspective in
Left to Right: Sanjiv Manchanda, Project Director, Garry Korte, Chief Financial Officer, Mrs Gina Rinehart, Barry Fitzgerald, Chief Executive Officer, Tad Watroba, Executive Director, Hancock Prospecting
regard to Australia’s economy, when the mine is operating at its full capacity, Roy Hill will generate export revenue significantly greater than either Australia's lamb and mutton export industry or our annual wine exports. This one mega project will generate more revenue than either of these two industries that generate many jobs and are very significant to the Australian economy.” “Roy Hill has already delivered many benefits to West Australia and Australia and following this first shipment will continue to do so for many years to come.”
shipment of ore will be delivered to POSCO’s steel mills in South Korea.” Tad Watroba, Executive Director of Hancock said, “This first shipment is testament to Mrs Rinehart’s vision, effort, determination and hard-work. This mega-Australasian project could not have occurred without Mrs Rinehart’s leadership from the initial pegging of the deposit more than 20 years ago to this historic day. Her decision to stick with the Roy Hill development through "thick and thin" has profoundly influenced the lives of thousands of people, including mine, who have been given a lifetime opportunity to work on such a world class project, and all of us are very proud of it."
Mrs Rinehart also said, “I am very pleased that representatives from Marubeni, POSCO and China Steel, our good partners in the Roy Hill Project could be present to bon voyage the maiden shipment, as our first “It is unreasonable that the media and industry analysts
are continually overstating the impact the Roy Hill Project will have on the iron ore price and ignore that prices dropped last year, pre Roy Hill even shipping. They also ignore the significant increases from now to the end of 2017 from other companies which will significantly exceed shipments from Roy Hill. The initial shipments, such as this one today from Roy Hill, will only represent a small portion of its capacity of 55Mtpa and their assessments don’t take into
“The fact is Roy Hill was not in the market when the iron ore price crashed last year or continued to drop this year, and won't be shipping 55Mtpa next year as it continues to ramp up production,” Mr Watroba added.
account that over 50% of Roy Hill’s output will be taken by the minority investment partners who are outside of China. With more than 90% of Roy Hill’s production secured under long-term contracts very little ore will actually enter the spot iron ore market.”
employees and contractors who contributed to making this happen. I would particularly like to thank our Chairman, Mrs Rinehart, for demonstrating her confidence in the Roy Hill Team and for her valuable guidance throughout the construction phase.”
Barry Fitzgerald, CEO of Roy Hill said “This is a very happy day for our Chairman, Hancock, Marubeni, POSCO and China Steel and of course the many
“The delivery of the project combined with the safety record which delivered a Lost Time Injury Frequency Rate performance 10 times better than the WA mining industry average, over the 33 million hours worked of which the last 11 million hours have been LTI free, demonstrates the excellent performance of the business in achieving this great and significant milestone. This overall delivery performance exceeds that of many of the similar mega projects completed over the past decade in Australia. In true Roy Hill style we delivered more than what we said
we would deliver,” Mr Fitzgerald added. With the departure of the first shipment, Roy Hill and its owners will now focus on a rapid ramp-up to the Project’s name-plate capacity of 55 million tonnes of annual exports. Customer demand for Roy Hill’s low phosphorus, fines and lump products is strong with over 50% of total capacity attributed to Roy Hill’s partners and more than 40% committed under long-term contracts with other customers in Asia.
MARCH 2016 - MAY 2016| DIGGING & DRILLING MAGAZINE 17
POSTCARD PROJECT»
Roy Hill Mine Blast
18 DIGGING & DRILLING MAGAZINE | MARCH 2016 - MAY2016
MARCH 2016 - MAY 2016| DIGGING & DRILLING MAGAZINE  19
Australia Pacific LNG exports from Curtis Island
operations with its first liquefied Curtis Island, near Gladstone.
cific LNG’s facility on Saturday 9
e of the LNG vessel marks over inal Investment Decision.
nt of work completed by coltitude of key contractors,
all of our stakeholders; including mmunity members.
1 and the first export of LNG, natural gas in Eastern Australia. ach full production from two LNG P reserves position.
CSG-LNG industry in Queensland, omic opportunities across the
Australia Pacific LNG has announced it had commenced operations with its first liquefied natural (LNG) uction facility willgas supply 9 cargo departing from its LNG facility on Curtis Island, near Gladstone. ooling the natural gas to -161˚ ort customers in Asia. The LNG vessel, the Methane Spirit, departed Australia Pacific LNG’s facility on Saturday 9 January, 2016. Australia Pacific LNG CEO, Page Maxson, said the departure of the LNG vessel marks over four years of planning and construction since making the Final Investment Decision. “This achievement is testament to an extraordinary amount of work completed by coverture’s Origin Energy, ConocoPhillips and Sinopec, a multitude of key contractors, including Bechtel, and a 15,000-strong workforce.
e between ConocoPhillips (37.5%), “Inproject addition, we are acific LNG includes the thankful for the ongoing support from all of our stakeholders; including Local, s resources in the Surat and Bowen State and Federal governments, landholders and community members. cility on Curtis Island, near
first LNG from Curtis Island “With our domestic customer portfolio, the start of Train 1 and the first export of LNG, Australia Pacific LNG has become the largest producer of natural gas in Eastern Australia. This position will only be strengthened as we expect to reach full production from two LNG trains by the end of 2016, reflecting our industry-leading 2P reserves position. “We are delighted to be part of the establishment of the CSG-LNG industry in Queensland, one that will continue for many decades and provide economic opportunities across the State,” Mr Maxson said. At full capacity Australia Pacific LNG’s two train LNG production facility will supply 9 million tonnes per annum of LNG to an export market by cooling the natural gas to -161˚ Celsius until it becomes a liquid, enabling transport to export customers in Asia.
Curtis Curtis Curtis Curtis Curtis Island Island Island Island Island
Laird Laird Laird Laird Laird Laird Point Point Point
Southend Southend Southend Southend Southend
LNG LNG facility facility site site
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About Australia Pacific LNG
Gladstone Gladstone Gladstone Gladstone Gladstone Gladstone
ROCKHAMPTON ROCKHAMPTON
INSET INSET
LNG facility facility LNG (see inset) inset) (see
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GLADSTONE GLADSTONE 5km 5km 5km
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Biloela Biloela
Moura Moura
BUNDABERG BUNDABERG
Theodore Theodore
Gas Gas pipeline pipeline route route
Taroom Taroom
HERVEY BAY BAY HERVEY
MARYBOROUGH MARYBOROUGH
Wandoan Wandoan
GYMPIE GYMPIE Condabri Condabri lateral lateral
KINGAROY KINGAROY
Miles Miles
NAMBOUR NAMBOUR
Chinchilla Chinchilla
Dalby Dalby
Surat Surat Walloons gas gas fields fields Walloons development areas areas development
TOOWOOMBA TOOWOOMBA
BRISBANE BRISBANE
LEGEND
Millmerran Millmerran
WARWICK WARWICK
QLD QLD QLD QLD QLD QLD QLD QLD NT NT NT NT NT NT NT NT
Area Area Area of of of Interest Interest Interest Interest Interest Interest
0 00 00 0
50 50 50 50 50 50
100km 100km 100km 100km 100km 100km
SCALE SCALE SCALE ----- 1 111 1 ::::: 2,750,000 2,750,000 2,750,000 (at (at (at (at A4) A4) A4) A4) 2,750,000 SCALE SCALE SCALE 2,750,000 (at (at A4) A4)
Latitude/Longitude Latitude/Longitude Latitude/Longitude Latitude/Longitude Latitude/Longitude Latitude/Longitude Geocentric Datum of Australia 1994 Geocentric Datum of Australia 1994 GeocentricDatum Datumof ofAustralia Australia1994 1994 Geocentric Geocentric Datum of Australia 1994 Geocentric Datum of Australia 1994
NSW NSW
AUSTRALIA PACIFIC LNG PROJECT
ROMA ROMA
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Regional Context
SA SA SA SA SA SA SA SA
Australia Pacific LNG Pty Limited is an incorporated joint venture between ConocoPhillips (37.5%), Origin Energy Limited (37.5%) and Sinopec (25%). The Australia Pacific LNG project includes the development of Australia Pacific LNG’s substantial coal seam gas resources in the Surat and Bowen Basins, a 530 km transmission pipeline, and a multitrain LNG facility on Curtis Island, near Gladstone.
www.aplng.com.au
MARCH 2016 - MAY 2016| DIGGING & DRILLING MAGAZINE 21
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Australian IPO market: Open for growth In spite of a shaky start to 2016 for Australian and global markets, local IPOs are generally bucking the trend. According to Deloitte’s 2016 IPO Report, produced in collaboration with M&A intelligence provider Mergermarket 2015 saw: • 97 ASX IPO listings (up 33% over 2014), with a market capitalisation of $17.6 billion and capital raised in excess of $8.6 billion • Market capitalisation down by 32% (2014 included Medibank Private, the third largest listing globally) • Average gains of 18% weighted by market capitalisation • Extended gains for 2014 listings, which closed the year 37% above their 2014 listing price.
According to Deloitte Corporate Finance partner and Head of Transaction Services Ian Turner: “Volatility in China and falling commodity prices have created an unsettling environment for equity investors, but IPOs remained stock market darlings in 2015, dominated by the technology and financial services sectors. “Growth was the theme common to the majority of listings, and the numbers certainly tell the story. From the list of the top performing IPOs for the year, the majority are small and mid-cap growth stocks, largely in the technology and related sectors, which raised less than $50 million of capital. “The level of sell-downs by private vendors, and them demonstrating their commitment to the post-listing growth of their businesses also affirms the growth story. The majority of non-private equity vendors are floating their businesses to raise capital for future growth and liquidity, rather than electing to realise their investment at IPO. Tapan Verma, Deloitte Director of IPO Transaction Services said: “We have also analysed the performance of private equity-backed listings and confirmed that overall results are far more positive than market sentiment reflects. Had you invested in every private equity-backed float from the start of 2013, and including some of the poorer performers, you would today be sitting on a portfolio return of 48%. The results really speak for themselves.” As for 2016, the outlook remains buoyant but subdued in comparison with the last two years. “The window for listings certainly remains open, although market volatility is expected to impact IPO valuations in the short term and result in more trade sale and dual-track M&A processes for some IPO candidates,” Verma added. “Technology and financial services, as well as consumer businesses that will benefit from lower Australian dollar and lower interest rates, will continue to drive IPO markets.” Turner said Healthcare would also be attractive to investors. “Despite being impacted by regulatory uncertainty and changes, the sector continues to demonstrate macro tailwinds. Transactional activity will remain strong, with the IPO exit route for quality assets facing strong competition from offshore strategic buyers,” he said. “On the demand side, fund managers remain well equipped to invest in IPOs given superannuation structures. High net worth individuals with ample liquidity will also join the pool of investors searching for growth and quality assets. “A key theme for 2016 will also be innovation. While hopeful tech start-ups looking to follow the path of Atlassian’s listing success will be a large component of this trend, companies that provide solutions for Australia’s aging population and those that can tap into Chinese consumer demand will also present value propositions for investors.”
MARCH 2016 - MAY 2016| DIGGING & DRILLING MAGAZINE 23
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New location for global oil and gas safety conference - OSCC 2016 moves to Kuala Lumpur ORGANISERS of the world’s only conference focused on safety and competency in the oil and gas industry have announced this year’s event is moving from the Middle East to Malaysia. The seventh annual OPITO Safety and Competence Conference - OSCC 2016 - will take place in Kuala Lumpur on 16thNovember. The one-day event is expected to attract over international 450 delegates and 30 exhibitors. Under the theme “Fit for the Future”, the conference will challenge current thinking on the regulation, maintenance and delivery of safety training and competence standards. Through keynote presentations and debates it will look at how technology can create real efficiencies in training and assessment processes; and explore how the industry can bring innovation to the way it trains people to go to work and get home safely. David Doig, group chief executive for OPITO said: “The low oil price is redefining our industry, sharpening the focus around cost and efficiency and challenging current practices. This presents an opportunity to examine the way in which competence and safety is delivered to ensure the global workforce is fit for the future. “The cyclical nature of our commodity-driven market dictates that where there are highs there will always be lows. Risk, however, remains the same. We need to look hard at how we set standards, train people and assess competence today in order to re-set the skills and competence landscape to cope with the highs and lows of tomorrow.” The OSCC is the only global event focused on debating the issues around safety and competency in oil and gas. Devised by international training standards body, OPITO as part of its drive for common global standards, it brings together industry leaders, government bodies, regulators and training providers to share new thinking and best practice. It has taken place in the Middle East since its launch in 2010 however OPITO’s intention has always been for the conference to reflect the global nature of the industry by moving across different international oil and gas hubs. “OSCC has gone from strength to strength since its launch and is now firmly established as a key event in the industry calendar. Kuala Lumpur was selected as the first of our new locations as a direct result of feedback from delegates,” added Mr Doig.
Registrations are now open and places can be booked online at;
www.opito.com/oscc-conference
David Doig, OPITO Group Chief Executive
Prelude Floating Liquefied Natural Gas (FLNG) Development
Prelude Floating Liquefied Natural Gas (FLNG) Development
Construction of Shell’s innovative Prelude FLNG facility is in progress and once complete it will be deployed off the northwest coast of Western Australia to extract and process gas from the Prelude and Concerto gas fields. The Prelude FLNG in Australia will be FLNG Shell’s first deployment of its FLNG technology. The technology Construction of development Shell’s innovative Prelude facility is in progress and once complete it will be deployed o allows for the production, liquefaction, storage and transfer of LNG at sea, as well as the ability to process and exportgas fields. northwest coast of Western Australia to extract and process gas from the Prelude and Concerto liquefied petroleum gas (LPG) and condensate. Prelude will be located in the Browse Basin, approximately 475km The Prelude of FLNG development will bepoint Shell’s first deployment its FLNG technology. The tech north-northeast Broome and over 200 in kmAustralia from the nearest on the coast of the remoteofKimberley region, in allows for the production, liquefaction, storage and transfer of LNG at sea, as well as the ability to process an Western Australia.
liquefied petroleum gas (LPG) and condensate. Prelude will be located in the Browse Basin, approximately 47
The Prelude natural of gasBroome field wasand discovered by Shell 2007the with an additional Concerto, nearbyKimberley in north-northeast over 200 km in from nearest pointfield, on the coastdiscovered of the remote regio 2009. Combined, these gas fields have around 3 trillion cubic feet of liquids-rich gas. The Prelude FLNG facility will Western Australia. be 488m long and 74m wide, weighing more than 600,000 tonnes fully ballasted - roughly six times as much as the largest aircraft carrier. Some 260,000 tonnes of that weight will consist of steel - around five times more than was The toPrelude gas field was discovered by Shell in 2007 with an additional field, Concerto, discovered n used build thenatural Sydney Harbour Bridge.
2009. Combined, these gas fields have around 3 trillion cubic feet of liquids-rich gas. The Prelude FLNG faci
Safety of thelong Prelude been paramount during its design, and itsfully safety is on par with modernsix times as much a be 488m andFLNG 74mfacility wide,has weighing more than 600,000 tonnes ballasted - roughly offshore oil and gas facilities. The FLNG design includes a number of key safety features including the layout (and largest aircraft carrier. Some 260,000 tonnes of that weight will consist of steel - around five times more than separation) of hydrocarbon processes from accommodation modules, enlarged safety gaps between process used to fire-proof build theprotective Sydneycoatings Harbour modules, andBridge. specially designed product loading arms. In addition, Lloyds Register has conducted an independent safety review of the Design Safety Case and relevant final safety assessments. Prelude operatedFLNG by Shell in partnership with paramount INPEX (17.5%), KOGAS (10%) andand OPIC Safetyisofproudly the Prelude facility has been during its design, its(5%). safety is on par with moder The PreludeoilFLNG is anticipated stay moored at location for a25number years, and expected produce 3.6 million the layout offshore and facility gas facilities. ThetoFLNG design includes of iskey safetytofeatures including tonnes per annum (mtpa) of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG for export.
separation) of hydrocarbon processes from accommodation modules, enlarged safety gaps between process modules, fire-proof protective coatings and specially designed product loading arms. In addition, Lloyds Regi Key facts conducted an independent safety review of the Design Safety Case and relevant final safety assessments. Location: Browse Prelude is proudly operated byBasin, ShellAustralia in partnership with INPEX (17.5%), KOGAS (10%) and OPIC (5%). The Prelude FLNG facility is anticipated to stay moored at location for 25 years, and is expected to produce 3 Water Depth: ~250 metres tonnes per annum (mtpa) of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG for export. Category: Floating liquefied natural gas Interest:
Key facts Fields:
Shell 67.5%, INPEX 17.5%, Kogas 10%, OPIC 5% Prelude and Concerto
Location: FLNG facility production capacity:
Browse Australia 5.3 million tonnesBasin, per annum (mtpa) of liquids: 3.6 mtpa of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG
Key contractors:
Technip Samsung Consortium
Water Depth: Category:
How the Prelude FLNG works Interest:
~250 metres
Floating liquefied natural gas Shell 67.5%, INPEX 17.5%, Kogas 10%, OPIC 5%
Fields: Prelude and Concerto The FLNG facility will be moored near to the Prelude field location for approximately 25 years, in 250 meters of water, by four groups of mooring chains. Each mooring chain will be held to the sea floor by piles. The facility has been FLNG facility production 5.3including million a’10,000 tonnes year’ per annum (mtpa) of five liquids: 3.6- and mtpa LNG, 1.3 designed to withstand severe weather, storm – or category cyclone willofremain onsite during all conditions. A series of seven production wells will feed gas and condensate from the reservoirs via capacity: and 0.4 mtpa of LPG four flexible risers into the facility. All subsea connections join the facility via the turret. The turret’s swivel design enables the facility to move according to wind and sea conditions as it remains fixed to the sea floor. Key contractors: Technip Samsung Consortium
mtpa of co
Prelude FLNG will have thrusters to provide a steady heading during the offloading process, but it is a fixed facility, with nothe means of propulsion. management of subsea wells and manifolds is carried out via umbilicals connected How Prelude FLNGThe works through the turret to the control room onboard the facility.
The FLNG facility will be moored near to the Prelude field location for approximately 25 years, in 250 meters o has b designed to withstand severe weather, including a’10,000 year’ storm – or category five cyclone - and will rem onsite series of seven will feeddesigned gas andcryogenic condensate LNG andduring LPG willallbeconditions. offloaded via A a side by side vessel production configurationwells using specially loadingfrom the reservo arms load the carriers. will loadAll condensate from the rear ofjoin the the facility using via a floating hose arrangement. four that flexible risers into Ships the facility. subsea connections facility the turret. The turret’s swivel des The products then be directly to customers theconditions world. enables thewill facility toshipped move according to wind around and sea as it remains fixed to the sea floor. The processing of gas and condensate occurs in modules onboard that occupy an area approximately one quarter the by four groups of mooring chains. mooring chain (DMR) will beprocess held tois the floor the by gas. piles. The facility size of a typical onshore gas plant. Shell’sEach Dual Mixed Refrigerant usedsea to liquefy Prelude’s
Prelude FLNG will have thrusters to provide a steady heading during the offloading process, but it is a fixed fa with no means of propulsion. The management of subsea wells and manifolds is carried out via umbilicals con
Prelude FLNG to be a game changer for Australia It will be the largest man made floating facility built to date, an island steel weighing around six times as much as the largest aircraft carrier – and it was a major feature at AOG 2016. The latest developments with Shell’s Prelude FLNG facility, which will be 488m long and 74m wide and contain around five times the amount of steel used to build the Sydney Harbour Bridge, were covered in a special session on Wednesday February 24 at the Australasian Oil & Gas Exhibition & Conference (AOG) 2016 conference.
Francis Norman, 2015 Western Australia Division Immediate past President, Engineers Australia says that through projects like Prelude, Australia has an opportunity to become a world leader in supporting the FLNG sector.
The Prelude FLNG session featured presentations from David Bird, Vice President, Production – Shell Australia, Jan Flynn, Lead Metocean Engineer, Shell Australia, Neil Clegg, Maintenance Reliability and Turnaround Manager – Shell Australia and University of WA Professor, David White.
“Australia has the skills and capability to pursue a world leading position in the support of the FLNG sector. Western The presentation session discussed the topics, Prelude FLNG – Australia in particular has a long history of both offshore Industry Innovation Coming to WA, Collaboration in Innovation production from fixed and floating facilities, along with over 25 – A Case Example, Collaboration in Innovation: Supporting years of LNG experience. This depth gives the region a strong WA’s Offshore Engineering and Collaboration in Maintenance. starting position to pursue a position of global leadership,” 28 DIGGING & DRILLING MAGAZINE | MARCH 2016 - MAY2016 Prelude was also featured in a Facilitated Panel Discussion. Mr Norman says.
This in-depth discussion featured Neil Clegg, Jan Flynn, David White and Doug Macintyre, Monadelphous’ General Manager, Oil & Gas.Prelude was also the topic of strong discussion on the exhibition floor, particularly at the ASCO stand.
the facility through the dedicated Darwin Marine Supply Base.Prelude is at the leading edge of the burgeoning FLNG sector, which is predicted to have strong growth throughout this decade.
In its most recent reports on FLNG Projects, international ASCO was recently awarded the Prelude Logistics and energy sector analysts Vision gain valued the global FLNG Supply Base contract in Darwin and the company will market at US$6.19 billion in 2015 – despite the downturn manage Prelude’s operations and maintenance logistics in commodity prices and Capex outlays, while Douglasrequirements, including management of Shell’s Darwin Westwood (DW) forecast in June 2015 that there will be a Onshore Supply Base, road and airfreight transport of total expenditure of US$58.3 billion in the FLNG market over MARCH 2016 - MAY 2016| DIGGING & DRILLING MAGAZINE 29 inventory within Australia, and supply vessel support to the next seven years.
MAJOR INDUSTRY BOOST FOR AWARD-WINNING LIGHTPATH TECHNOLOGY AS IT LAUNCHES LATEST PRODUCT Sector endorsement for patented flexible line of light which supports divers in subsea conditions
Scottish research and development company PhotoSynergy Ltd (PSL) is enjoying a hat trick of successes as a major operator and two subsea service companies push the envelope to further the safety of their diving personnel and increase efficiencies in the subsea sector. The North Sea Operator has, for the first time, included PSL’s LIGHTPATH technology in its diving operations and management guidance document, which aims to ensure compliance with latest legislation and industry best practice. Meanwhile, leading international inspection, repair and maintenance (IRM) companies Harkand and Bibby Offshore have announced their continuing support for PSL’s LIGHTPATH range of products, which offer an innovative technical solution to sectors, including the challenging and hazardous subsea environment, where safety of life is paramount. Winner of the Subsea UK Innovation for Safety Award 2014, LIGHTPATH is a side-emitting flexible fibre that projects a continuous and flexible line of light that carries no electrical power and has a life expectancy of five years.
products – the SLS2000 – which was developed following feedback from divers and their teams, providing the option to illuminate the dive umbilical from the diver end. It was produced following requests from industry for a minimalsized light source which would not impede the diver during his work. A small, compact unit at just 30mm in diameter and 70mm long, it was designed to provide a light source to saturation divers using an LED attached to the umbilical at the diver’s end. Operational sea trials of the unit – which can be used in both saturation and air diving – are planned with existing clients following successful competition of final in-house tests and third party pressure testing. PSL Director Don Walker said: “The recognition of the increased safety afforded to divers utilising the LIGHTPATH umbilical lighting concept by these companies marks a significant step for PSL, and we very much appreciate their support. “We are very grateful for all the help and guidance we have received over the past few years from Harkand and Bibby Offshore – the level of support they have shown has been invaluable and helped us develop LIGHTPATH further for more specific markets.
PSL recently launched the latest in its portfolio of subsea “We have been operating the LIGHTPATH in the North
committee, said: “Harkand is committed to the wellbeing of its personnel and presenting the most appropriate solutions for clients. As a company we have recognised that although not a mandatory or industry specific requirement, LIGHTPATH further enhances the diver’s ability to manage their umbilical, improving their safety and simultaneously delivering more efficient operations.
Sea for the past three years, and the general consensus among the dive community is that divers feel safer using the technology to illuminate saturation diver umbilicals, which enhances safety and productivity for all parties, including the individual diver, colleagues in the water and the bell-man. “It also gives confidence to the ROV pilot as to the location of diver umbilicals, thus minimising the risk of collision and can significantly reduce the incidence of umbilical snagging, both for saturation and surface air divers.” Harkand, which has been using another of PSL products – the SLS5000 - on two of its North Sea vessels for the past few years, has also recognised the importance of the SLS2000 and is currently in talks with PSL about trialling it. Jerry Starling, Harkand’s group diving manager, and a member of the IMCA diving division management
“Umbilical management is a key component of diver activity for both safety and time saving reasons. We have found that LIGHTPATH helps reduce recovery time as the diver can track and identify their route back to the bell, as well as identify any snags and entanglement of the umbilical due to the variations in colour offered by the equipment. It also ensures divers and ROV pilots can constantly monitor that the umbilical is clear during equipment deployment and recovery, which are generally high risk activities. “We look forward to working further with PSL in the future.” Meanwhile, Bibby Offshore, who have worked with PSL from the outset to help with the development of LIGHTPATH, is about to start trials of the SLS2000 within the next few weeks. Diving Manager Ian Mitchell, said: “Bibby Offshore regard the LIGHTPATH as a significant safety enhancement and use it as standard on all our DSVs. We are pleased to be involved in the further development of the LIGHTPATH system and believe the SLS2000 will further enhance the usefulness of the product and increase its potential applications.”
MARCH 2016 - MAY 2016| DIGGING & DRILLING MAGAZINE 31
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Caltex and Craig Lowndes join forces to create TeamVortex
Caltex Australia and Triple Eight Race Engineering are excited to announce the creation of TeamVortex to run in the 2016 V8 Supercar Championship with Craig Lowndes.
creation of TeamVortex. This gives us a brilliant opportunity to give Craig a platform to continue to rack up race wins including, hopefully, a few more Bathurst’s!” Dane said.
The launch of TeamVortex is a natural extension of the existing “Furthermore, it allows us to build our engineering expertise Caltex partnership with Triple Eight and the current Bathurst here for the betterment of the entire Triple Eight organisation. 1000 King of the Mountain, Craig Lowndes. The initial commit- This is also a great testament to the category as a whole with ment is for a minimum of two seasons. an organisation of the stature of Caltex choosing to increase its involvement and visibility at this time.” TeamVortex will become the third car in Triple Eight’s stable and will run alongside the Red Bull Racing Australia team cars. Caltex Australia, Triple Eight Race Engineering and Lowndes Lowndes, a six-time Bathurst winner and Caltex brand ambas- are looking forward to a promising 2016 season. sador for nearly a decade, will officially take the wheel of the new TeamVortex Holden Commodore on 1 January 2016. Cal- The Caltex partnership with Red Bull Racing Australia remains tex, Australia’s leading transport fuel supplier, has an exten- unchanged. sive history supporting Australian motorsport, including many years as a major partner of leading V8 Supercars team Red Bull Racing Australia and as naming rights sponsor of the iconic Caltex Chase at Mount Panorama. Caltex’s Executive General Manager Commercial, Bruce Rosengarten, said the iconic Australian fuel brand was proud to extend its commitment to Australian motorsport while continuing to partner with Lowndes, arguably the biggest name in the business. “Caltex has been by Craig’s side for almost ten years of his racing career. As a legend in the sport, and indeed Australian sporting history, we couldn’t be more excited to power him as he takes the wheel of TeamVortex,” Rosengarten said. “I’m really excited to have TeamVortex created around me and thrilled to have the continued support of Australia’s leading fuel supplier, Caltex, over the next two seasons,” Lowndes said. Triple Eight Race Engineering Team Owner Roland Dane said he was excited at the opportunity to further grow the team. “We’re extremely pleased to have Caltex step up for 2016 and beyond with the
Lowndes lifts the cover off the new TeamVortex V8 Supercar partnership with Australia’s most successful V8 driver. “TeamVortex is the beginning of a new chapter, further demonstrating our continued dedication and commitment to the V8 community. For our customers, look out for exciting new promotions with Vortex premium fuel as we celebrate Craig and TeamVortex taking to the track in 2016,” Rosengarten said. Lowndes said he could not wait to hit the track and test out the new-look car. “I couldn’t have asked for a better team around me heading into the 2016 V8 Supercars Championship,” Lowndes said. “Both the team and I have a brilliant relationship with Caltex, so I couldn’t have been happier when I found out I’ll be driving the TeamVortex Holden. “I’m really looking forward to getting on track and getting the 2016 season started at the Clipsal 500. Hopefully Steve Richards and I will be able to bring home the Bathurst trophy again later in the year, and really give Caltex and all our other sponsors a debut season to remember.”
Racing legend Craig Lowndes has now unveiled the new TeamVortex livery ahead of its debut in the 2016 V8 Supercars Championship.
Triple Eight veteran Ludo Lacroix will be engineering Lowndes as he shoots for his fourth series title. The Frenchman joined the team in 1999 and was instrumental in leading them to category domination in the British Touring Car Championship. Having moved to Australia with Triple Eight in 2003, Lacroix has been influential in shaping not just the engineering direction of the team, but of the sport as a whole. Together, he and Lowndes will be a formidable pairing. Meanwhile, Andrew Simpson takes on the role of team manager and John McGregor moves across to TeamVortex as data engineer.
Triple Eight Team Owner and Managing Director Roland The formation of TeamVortex is a natural extension of Dane said he was pleased to further expand the team. the strong partnership between Lowndes, leading fuel “We’re delighted to have Caltex step up for 2016 and supplier Caltex Australia and the highly-successful team beyond with TeamVortex,” Dane said. “The partnership, at Triple Eight Race Engineering. Lowndes, a six-time which has grown and strengthened over the last decade, Bathurst winner and Caltex brand ambassador for almost a has allowed us to build engineering expertise here for the decade, is set to take the wheel of the number 888 Holden betterment of the Triple Eight team, giving us a unique Commodore VF, with Steven Richards joining him as co- opportunity to give Craig a platform to continue to rack up driver for the third consecutive year. The pair claimed a race wins. “We’re all greatly looking forward to what we’re memorable win at last year’s Bathurst 1000 and between sure will be a tremendous debut year for TeamVortex and them have now won The Great Race an incredible 10 times. we’re proud to have the support of an excellent group of team partners around us.” Caltex Australia’s Executive General Manager Commercial, Bruce Rosengarten, said the iconic fuel brand was proud to unveil the TeamVortex V8 Supercar with Lowndes behind the wheel. “Caltex has backed Craig for almost a decade and we’ve got a strong history supporting Australian motorsports. “Vortex is the most popular premium fuels brand in Australia, so we’re excited to be extending our
Triple Eight and Caltex are thrilled to have a strong group of team partners on board, including MTAA Super, GearWrench, IVECO, O’Brien Glass, Holden and Red Bull, to continue to bring great innovation to Australian motorsport and make TeamVortex a force to be reckoned with both on track and off.
34 DIGGING & DRILLING MAGAZINE | MARCH 2016 - MAY2016
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Mechbro can provide a variety of machinery and vehicles to suit your needs. MechBro currently have 6 mine specified service vehicles supported by a tilt tray truck capable of loading and unloading 20’ sea containers and moving items of plant up to 8 Tonne.
SAFETY FIRST
Having established MechBro Pty Ltd on May 9th 2011, with 2 mechanics we have experienced rapid growth and now have a great team of mechanics and service men. In 2012 we also acquired a light vehicle w ork shop in Joondalup. Within the next 12 months we will be establishing a heavy duty workshop where we can service, repair and store larger equipment.
Our aim is to conduct our business using systems and practices which will ensure that our workforce and the community are protected from injury and harm. Safety and productivity go hand in hand with our people working as problem solvers to get the job done.
WORKSHOP & ONSITE SERVICE
We have the equipment and the facilities to service your machinery and vehicles. We will also invest in our business and tailor to your requirements.
For more info, contact Mark Nielsen
Mobile: 0438005655
www.mechbro.com.au
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Obsessions
Charter flights for WA industry, VIP and freight
Over 27 years of experience in Charter flights.
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