ANZ Sharing Success 2012

Sharing Success Our improvements, innovations and ideas WorleyParsons Improve Contracts Australia & New Zealand Annual Edition, 2012

Welcome Note from Ivan Welcome to Sharing Success, our regular opportunity to share our best ideas, innovations and improvements across contracts and customer sector groups.

We are proud to once again share some of the ways our Improve contracts have created value for our customers.

Success comes through working together with our customers and many of the stories in this publication are great examples of the massive benefits of working more closely together and the importance of a joint focus on value-add.

It is pleasing to see the variety of initiatives undertaken, not only have we found better ways to deliver one-off projects, several of our teams have looked at improving the way we do business on a daily basis. The team at Worsley Alumina has developed and rolled out a P&ID training program, the Fortescue team customised and rolled out Project Management Training, our Footscray office looked at best practice in Project Delivery for our Qenos and ExxonMobil contracts, OneSteel has introduced Blitz-based project management and the team at Boyne Smelters undertook a review of their current project management processes and developed a new project template designed to reduce repetitive tasks and save time and money. This is the culture we are actively encouraging and fostering within the Improve community.

The overall winner of the 2012 Sharing Success Award goes to the BSL team for their project cycle time improvement initiative. Over the past two years the combined team of WorleyParsons and Boyne Smelters personnel has put a lot of effort into reducing cycle times as part of a drive to increase efficiency of project delivery. The team identified and installed a number of corrective actions which led to productivity improving from $650,000 to $1 million expenditure per site based person and to an increase in the percentage of projects presented for funding approval. Cycle times have been significantly reduced across all projects and the team continues to strive for further improvement. Well done to the team who will receive a trophy and $750 towards a team building event of their choice.

We look forward to continuing to highlight more customer value-add solutions in the coming year. I encourage you all to take part and contribute your ideas, remembering always that adding value to our customers’ businesses is fundamental to long term successful relationships.

I am delighted to announce two annual awards for this year.

The HSEC Sharing Success Award goes to the ExxonMobil Altona Refinery team for the B1103 Convection Section Upgrade. This complex upgrade involved 12 months planning to transport the 103 tonne convection section via ship and road. Five heavy lifts were involved and the team also used a modular replacement approach which contributed significantly to an efficient installation. I would like to recognise the complex task undertaken in the shutdown and the excellent planning that went into the delivering the initiative. This technically complex project was delivered safely and ahead of schedule. The team will receive a trophy and $500 to go towards a team related item or event of their choice. Well done to the combined team.

Ivan Cauley Regional Improve Director ANZ

If you have an idea, innovation or achievement you would like to share with your colleagues through this publication please contact: sharingsuccess@worleyparsons.com

Publication Produced by

Managing Editor

Editor

WorleyParsons Marketing & Research Group, Australia

Sally Forstner Improve Marketing Manager

Damien Mulhall Improve Marketing & Research

2

Sharing Success Welcome note from Ivan

Contents 4 5 6

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Sharing Success Overall Winner 2012 Sharing Success HSE Winner 2012 Rail Wheel Stamping Project P&ID Training Program Development and Roll-out Railway Sleepers Pipe Supports Butterfly Valve Evaluation Project Management Training Meltshop Secondary Fume System Upgrade The Ten Commandments of Project Delivery Blitz-Based Project Management

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Warehouse No. 2 Crane Rotation

7 8 9 10 11 13

16 17 18 19 20 21 22 23 24 25 26 28 29

Coal Prep Plant Tailings Leak Detection E4101 Lift Jacket and Topside Strengthening Rigging Demonstration LNG 1 Pulse Air Upgrade Meter Redundancy Cost Saving Tanker Safety Initiative Anode Modification Reservoir Pump Pads Exchanger Bolts Study Leveraging off the Improve Site Team for Fast Delivery Energy Efficient and Greenhouse Gas Portfolio Optimization Fire Water System Upgrade

30 31 32 33 34 35 36

38 39 40

Ash Hopper Redesign Mobile Platforms Safety Hazard Identification Oxalate RTO/Kiln Project Devil Creek Gas Plant As-Built Drafting EAF Dust Treatment Castle Camp 500 Person Upgrade Engine Operating Temperature Reduction Rock Armour Solution Project Template Updates Coal Mill Baghouse and Duct Insulation

41

Automatic Oil-Water Separation Review

42 43 44

Tukey’s Nest Elimination PIS ISO Workshare Initiative External Anode Supply Rodded Anodes Casting Carousel Replacement Safety First with WorleyParsons

37

46 47 48

51

Fire Water Pumphouse Initiative 2012 Grinding and Rail Excellence Award Winner Bridge Support Structure Installation

53

‘Hit and Run’ Piping Initiative

54

Quick Response Team Start Up of Yarwun 2

50

Sharing Success

3

Sharing Success Overall Winner 2012 Project Cycle Time Improvement Customer

Boyne Smelter Limited

Contract Name Location

BSL Improve Alliance Boyne Island, Queensland

What was the need?

Project cycle time is the measured duration of a project from inception, to close-out, which is administered by the Boyne Smelter Limited (BSL) Project Controls and Accounting team.

At BSL, in October 2010, the project cycle time was challenged by the Manager of Maintenance and Projects, questioning how we could improve cycle times in the face of increased business pressures.

What was the outcome and how much value did we add?

Based in part on the efforts of improving cycle time, there were several key outcomes: • There was a positive response from our customer, who commented on the change. Customer satisfaction is currently running at >80% • The team was able to improve productivity from $650,000 to $1 million per site based person

What did we do?

A project team was promptly established to investigate. The plan involved extensive data collection, root cause analysis, and the implementation of corrective actions. The actions were: • Development of detailed resource levelling schedules to optimise resource efficiency and effectiveness • More critical project gate reviews to ensure projects were sufficiently defined prior to implementation. This effort lead to an increase in FEL days, from 251 in 2011 to 287 in 2012 • Rationalisation of project documentation and project processes. Using value stream mapping techniques

• The percentage of projects presented for funding approval increased, due to the improvement in front end definition

Who was involved?

Danie Swemmer (BSL Manager Projects and Maintenance), Ben Vandenberg (BSL Projects Accountant), Shane Burns (WorleyParsons’ Alliance Manager) and the Projects Team.

What did we learn?

Through analysing the current strategies, the projects team was able to identify a key metric that focused the improvement initiative. Uniting the efforts of the entire team on a single KPI can achieve outstanding results across many facets of the portfolio.

• Electronic document approvals, coupled with a streamlined Responsibility, Accountability, Consulted, Informed (RACI) chart • Creation of visual targets and measured results, linked to personal performance 1000 900

Jan 2011

Total Cycle Time (Days)

Jan 2012

2010 vs 2011

833

Target

800 700 600

605

584 495

500

382

419

400 300

239

259

200 100 0

> $1m 4

> $200k < $1m

Sharing Success Overall Winner 2012 - Project Cycle Time Improvement

< $200k

All Projects

Sharing Success HSE Winner 2012 B1103 Convection Section Upgrade Customer

ExxonMobil

Contract Name Location

Mobil CME Alliance Altona, Victoria

What was the need?

The Mobil Refinery turnaround saw the successful execution of the B1103 Convection Section Upgrade Project. The project, which commenced two years ago, has involved a number of key focus areas including construction methodology, procurement and structural design concepts to permit the modular replacement of the convection section.

The procurement of the new convection section was a 12 month undertaking involving vendor design in Houston and fabrication in South Korea.

What did we do?

Due to the oversized dimensions, the shipping and road transport of the 103 tonne module involved significant planning.

The pre-turnaround construction activities of the project involved installation of scaffolding, structural bracing and temporary support steelwork while the heater was still in operation. The new convection section was delivered in a number of sections and assembled on site along with the replacement overhead structural steelwork.

During the turnaround construction, the critical activities included asbestos and refractory removal at the interface, temporary stack removal, separation and removal of the old convection section and installation of the new convection section. The new convection section installation involved structural connections, external seal plates installation, a rebuild of the internal refractory at the interface, new inlet/outlet piping installation, installation of new platforms and reinstatement of the lighting and instrumentation.

With close management of the vendor throughout the procurement stage we were able to deliver to the refinery ahead of schedule.

What was the outcome and how much value did we add?

Five heavy lifts were required as part of the main installation activities; these were performed safely and without issue.

The old convection section was removed and the new convection section installed with minimal adjustment, both of these heavy lifts were able to be completed in 10 hours.

The efficiency of the installation was made possible by the modular replacement approach and a number of innovative structural concepts that were implemented. The decision to proceed with this approach early in the project development proved to be advantageous as the project execution progressed ahead of plan and off the critical path during the turnaround.

Even though there were stringent targets and significant overseas procurement, the construction phase was delivered safely and ahead of schedule.

Who was involved?

Frank Dâ&#x20AC;&#x2122;Amico (Project Manager), Robert Bellizia (Structural Engineer), Michael Cullen and Greg Whittison (Structural Design), Ananda Lokuliyana (Mechanical Engineer), Lance Jamieson (Piping Design), John Pinto (I/E Engineer), Brian Plant and Steve Maheras (TWSupervisors) and Alex Zeltsvas (Project Engineer).

What did we learn?

The refinery is looking forward to realising the benefits of the new, more efficient convection section. Initial indications are that the energy efficiency improvements of the project have already been achieved.

B1103 Convection Section Upgrade - Sharing Success HSE Winner 2012

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Rail Wheel Stamping Project Customer

OneSteel

Contract Name Location

WorleyParsons OneSteel Market Mills and Mining Consumables Alliance Waratah, New South Wales

What was the need?

One of the products OneSteelâ&#x20AC;&#x2122;s Waratah plant manufactures is railway wheels, mainly for use on heavy haul lines. A requirement of the Association of American Railroads (AAR) certification for rail wheels is that they are stamped or engraved with a serial number and manufacturing date.

These characters must be at least 10 mm high and 0.4 mm in depth. The current equipment within the plant, which uses hydraulically operated die stamping, met this specification on high hardness grade wheels but required extra manning compared to the other existing, dot peening, marking process which do not meet AAR requirements.

What did we do?

The business unit had obtained a budget quotation from a Canadian company for the supply of a new wheel stamping machine. The Alliance was engaged to complete an Assess phase for this proposed machine. The brief for this work included a request to identify any alternate suppliers to allow competitive tendering in subsequent project phases.

Richard Baker, a WorleyParsons Mechanical Engineer, undertook a search for suitable equipment suppliers for the rail stamping machine and during this process it became evident that the alternative technologies available (using a dot peening machine or an engraver), would meet the AAR specification. Furthermore the dot peener could be installed within the existing wheel stamping machine.

Project Manager Albert Boccuccia, arranged for the shipment of sample sections of rail wheels to the Spanish equipment supplier to complete proof testing to ensure the dot peening engraving would meet the AAR specification on OneSteelâ&#x20AC;&#x2122;s high hardness wheels. The results of this testing can be seen in the photo.

What was the outcome and how much value did we add?

The budget price for the complete wheel stamping machine was USD 700,000 excluding any installation costs. The budget price for the dot peening engraver head to fit in place of the existing dot peener was EU 18,000. A general estimate of the overall reduction in project cost (purchase and installation) of purchasing the dot peening equipment rather than the hydraulic stamping machine was AUD 900,000.

The project scope was reduced from the purchase and installation of a complete machine to the retrofitting of a small part to the existing machine.

The use of dot peening engraving will deliver productivity improvements for the business due to a much shorter cycle time than die stamping.

Who was involved?

Richard Baker (Mechanical Engineer) and Albert Boccuccia (Project Manager).

What did we learn?

The Assess phase delivers project value through exploring alternative solutions to a production process problem. In this case the potential savings were many times more than the costs incurred in completing the Assess phase for the project.

Top: Hydraulic Die Stamping Bottom: Dot Peening Engraving 6

Sharing Success - Rail Wheel Stamping Project

P&ID Training Program Development and Roll-Out Customer

BHP Billiton Worsley Alumina

Contract Name Location

Worsley Alumina Improve Collie, Western Australia

What was the need?

A training program was required for all Worsley employees, who were part of the operations and maintenance team, to ensure they are able to read and understand Piping and Instrumentation Diagrams (P&IDs).

The aim of the program is to support employees from Trainee Plant Operators through to the Engineering Department.

What did we do?

The Worsley Alumina Improve team compiled and presented training packages on how to read P&IDs. Various courses are now available ranging from question and answer sheets for those with full knowledge through to a six hour course for those with no prior knowledge.

While the actual value is immeasurable, we have been able to reduce the risk of incorrect isolations, educated people on how important P&IDs actually are to the running of the refinery, and have given people further confidence to do their jobs safely.

Who was involved?

George Brock (Lead Designer and Presenter), Julie McCormack and Melvin Santos (Senior Designers), the Worsley Training Department and a local TAFE Representative.

What did we learn?

Not everyone was aware of how critical P&IDs are to the company. An opportunity existed to improve understanding and use of P&IDs.

What was the outcome and how much value did we add?

All employees that are part of the operation and maintenance of the refinery must now complete the training course. The Plant Operators and Isolation Officers are now confident in using P&IDs. We have also been able to have this course accredited as a unit in the TAFE Course for Plant Operators.

P&ID Training Program Development and Roll-Out Sharing Success

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Railway Sleepers Pipe Supports Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Perth, Western Australia

What was the need?

Within the Fortescue Sustaining Capital Alliance contract the need arose to construct solid infrastructure to manage the relocation and storage of tailings produced from the Ore Processing Facility (OPF) desanding process.

When the desander removes the abrasive solids and separates sand and silt from the drilling fluid it leaves tailings. The tailings relocation and storage process needed to be managed effectively.

What did we do?

The WorleyParsons Sustaining Capital team constructed a tailings storage facility in the north portion of Brampton Pit at Fortescueâ&#x20AC;&#x2122;s operation in Perth. This project included the installation of a transfer pipeline and associated infrastructure to transfer tailings from the OPF to the Brampton storage facility. During this process, the projects team challenged the existing standard design of steel pipe supports by identifying that existing railway sleepers could be used in their place.

Railway Sleeper Pipe Suports

Fortescue Metals Group Train 8

Sharing Success - Railway Sleepers Pipe Supports

What was the outcome and how much value did we add?

Using existing railway sleepers removed the need to build new supports. This innovative solution resulted in a CAPEX saving of $170,000 for Fortescue.

Who was involved?

Matt Murphy (Originator), Scott Robinson (Supervisor), Richard Kerrison (Discipline Owner) and David Aston (Fortescue GM Sustaining Capital).

What did we learn?

In thinking outside the box and using existing materials available, the Sustaining Capital team was able to deliver significant savings to Fortescue.

This project also offered an environmentally sustainable solution through the use of existing materials rather than the construction of new pipe supports.

Butterfly Valve Evaluation Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Perth, Western Australia

What was the need?

Who was involved?

During installation of the dewatering infrastructure, the Sustaining Capital team was asked by Fortescue to purchase butterfly valves. These valves were required to regulate the flow of water, therefore enabling mining where water pressure is equal to atmospheric pressure.

Ver Chavez (Originator/Project Engineer), Sameer Kalbag (Project Engineer), Reuben Joseph (Team Leader), Simon Thorpe/Paul Ridout (Fortescue) and David Aston (Fortescue GM Sustaining Capital).

What did we do?

Fortescue asked the Sustaining Capital team to research available butterfly valves and provide them with a selection from different suppliers that were cost effective and could produce better lead times than the current valves. Fortescue selected a sample from the choices provided to use on a six month trial basis.

What did we learn?

Through research and consideration the Sustaining Capital team was able to provide faster and more cost effective alternatives, which led to successful outcomes for the customer.

What was the outcome and how much value did we add?

The Sustaining Capital team successfully found a selection of butterfly valves that would deliver better lead time than the valves currently in use. Once installed, the new valves provided Fortescue with an 18% cost saving of $9,000.

Butterfly valve Butterfly Valve Evaluation Sharing Success

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Project Management Training Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Perth, Western Australia

What was the need?

WorleyParsons was asked by Fortescue Metals Group to redesign the six existing WorleyParsons Project Management training modules to reflect the project methodology practiced within the Sustaining Capital portfolio. Once the modules were redesigned, WorleyParsons was asked to facilitate and deliver the training to Fortescue.

What did we do?

The six Project Management modules were delivered in groups of two, in three sessions over a six day period. The modules were delivered to all Project Engineers and Senior Project Engineers in the Sustaining Capital Group which is comprised of both Fortescue and WorleyParsons employees.

The six modules were delivered as follows: Session 1 • Module 1 - Introduction to Project Management • Module 4 - Project Services Session 2 • Module 2 - Project Scope Development (including FEL) • Module 5 - Project Assurance Session 3 • Module 3 - Procurement and Construction Management • Module 6 - Leading the Team

10

Sharing Success Project Management Training

What was the outcome and how much value did we add?

The training was very successful with positive feedback received from the Project Management team. The team reported that it helped them gain a deeper understanding of the requirements of their roles and the project deliverable requirements at Fortescue.

With a number of the team members being new to Project Management, the modules helped to give them a solid foundation to build from and to help them manage projects successfully.

The customisation of the WorleyParsons training modules and the delivery of the training was completed at no charge to Fortescue. The customisation and training took approximately 400 hours.

The overall cost saving to Fortescue for the Project Management training modules was $60,000.

Who was involved?

Aaron Dowling (Originator), Rob Mayston (Improve Contracts and Projects Manager) and David Aston (Fortescue GM Sustaining Capital).

What did we learn?

This initiative highlights the advantages of tailored training to suit customer requirements and the value and cost saving that can be achieved as a result.

Meltshop Secondary Fume System Upgrade Customer

OneSteel

Contract Name Location

WorleyParsons OneSteel Market Mills and Mining Consumables Alliance Laverton Steel Mill, Melbourne

What was the need?

At the Laverton Steel Mill, the meltshop secondary fume system had to be turned off when the furnace roof was opened (for scrap charging), to avoid drawing hot embers into the baghouse. The fume system then needed to be restarted as soon as the furnace roof was closed.

This caused a large cloud of fume to form inside the meltshop building. Physical modelling of the fume system was conducted, which determined that a second fume hood could be used to enable the fume system to continue running while the furnace roof was open. The second hood would be offset from the furnace to avoid hot embers entering the baghouse.

What did we do?

WorleyParsons was asked to manage a Capital project to design, manufacture and install the second fume hood, ducting and dampers. While the design and manufacture was fairly straight forward, the project involved a number of risks, these included: • Working at heights at an elevation of 28 metres

What was the outcome and how much value did we add?

Despite the high risks involved, all works were completed without incident or injury within the timeframe required. The performance of the fume system has improved significantly.

Previously, it took 12 minutes for normal visibility to be restored after closing the furnace roof. Since the upgrade, normal visibility is restored after two minutes.

Who was involved?

Andrew Goff (Alliance Project Engineer), Matt Van Der Rest and Tony Lazarkov (Customer Representatives), Maxwell Engineering (manufacture and installation) and Williamstown Crane Hire.

What did we learn?

Through careful planning and involvement of all key stakeholders, challenging issues can be overcome and HSE risks can be safely managed.

• Working from man cages • Crane lifts where the driver was unable to be seen Through careful planning, and by working closely with the customer representatives, crane companies and mechanical contractors, the work was sequenced to avoid exposure to fall risks. Works were completed during a shutdown alongside other works which competed for space and resources.

Before the upgrade: 10 minutes after the roof is closed

After the upgrade: two minutes after the roof is closed Meltshop Secondary Fume System Upgrade Sharing Success

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Sharing Success

The Ten Commandments of Project Delivery Customer

Qenos/Mobil

Contract Name Location

Qenos WorleyParsons Strategic Alliance/ExxonMobil CME Alliance Altona, Victoria

What was the need?

The Footscray office executes both portfolio and stand-alone projects for both alliance partners as well as other customers.

The office has upwards of 60 ongoing projects at any one time ranging from 50 hours up to 5,000 hours. Managing such a diverse range of projects is challenging as each project competes for resources and has its own schedule and due dates to meet. With such a high number of projects with competing deadlines, it was felt that adopting a set of project commandments would help the team deliver more efficient project outcomes.

With an office where over 50 projects can be active at any one time, keeping these progressing as planned can be a major challenge.

What did we do?

As a group the project managers and lead engineers worked together and created ‘The Ten Commandments’ of project delivery. These are: 1. Progress report updates in InControl by COB each Thursday 2. Arrive at meetings on time and/or decline/accept in a timely manner 3. Communicate, communicate, communicate (with project team, stakeholders, customers, etc. Eg daily progress meeting, weekly report, external/internal) 4. Deliver on schedule (Project Lead, Project Manager, etc) 5. Deliver on budget (Project Lead, Project Manager, etc) 6. Work on approved deliverables only 7. Agree and work to the BOD (‘The Bible’)

What was the outcome and how much value did we add?

Benefits of The Ten Commandments include more timely communication between personnel (eg when resolving issues), better project control of budgets and schedule and a stronger focus on management of change issues. Another benefit is that The Ten Commandments are a good talking point that the Project Manager can use to keep the team on track. To keep it ‘front and centre’ this initiative has been added to the project delivery noticeboard and is regularly discussed at Footscray meetings.

Who was involved?

Geoffrey Constable (Lead) and a multifunctional team of Project Engineers, Managers, Lead Engineers, Alliance Managers and Location Management.

8. Perform Management of Change per WorleyParsons requirements

What did we learn?

9. Project Manager to issue project reports to all project team

Using The Ten Commandments helps the discipline engineer consider the big picture before they dive into the engineering works. Considering the big picture helps ensure the project runs smoothly and meets cost, schedule and customer expectations.

10. Recognise good performance

The Ten Commandments of Project Delivery Sharing Success

13

Blitz-Based Project Management Customer

OneSteel

Contract Name Location

WorleyParsons Market Mills and Mining Consumables Alliance NSW, VIC, SA

What was the need?

In a project, Project Managers need to consider when to use specific procedures, tools, templates and how to apply them to a project. In an alliance, there are many policies, procedures, tools and templates, which describe what needs to be done and why. Over time these processes mature and become detailed and complex, particularly for new starters and incoming Project Managers. As a result, project phases either take a long time to execute (as Project Managers wade through a myriad of documents) or Front End Loading (FEL) quality reduces, which leads to cost, schedule or quality issues in the Execute Phase. The Alliance team saw the need to simplify project processes and reduce project times through the implementation of common tools at OneSteel.

What did we do?

What was the outcome and how much value did we add?

The value created from this initiative will be ongoing. The Alliance team is currently rolling out the Blitz process on all new FEL phases and they anticipate that the cycle time reductions will average approximately 100-200 days with a corresponding return to the business in delivering business benefits faster.

Who was involved?

Colin Hamilton (then OneSteel/WorleyParsons Alliance Manager), Matthew Mahony (OneSteel Engineering Manager), Richard Burwood (Portfolio Manager OneSteel/WorleyParsons Alliance) and various other Alliance members.

The Alliance team worked to source ways to reduce project cycle times.

What did we learn?

Through a Lean workshop, coordinated by WorleyParsons, the current process state (as is) was reviewed and the desired state was mapped out through group brainstorming. Lean has a number of tools (such as Value Stream Mapping), which can be applied to Alliance processes. The value of process mapping is in getting the process down and estimating the cycle time benefits.

This initiative is an excellent example of the value of implementing Lean-based concepts and processes in alliances.

The desired state processes in this alliance are being followed to make sure benefits are ongoing for OneSteel.

As a result of the Lean workshop, the Blitz-based Project Management process was envisioned in the define phase and the desired state was developed.

The Alliance workshop attendees brought the concepts back to site and completed the desired states for all FEL phases.

Initiation Stage

14

BLITZ 1: Kick-off Meeting

Preliminary Design Stage

BLITZ 2A: Preliminary Design Review

Sharing Success Blitz-Based Project Management

Design Development Stage

BLITZ 2B: Preliminary Design Review

Gate Readiness Prep Stage

BLITZ 3: Gate Readiness

Finalization Stage

CAPEX APPROVAL

Warehouse No 2 Crane Rotation Customer

OneSteel

Contract Name Location

WorleyParsons OneSteel Market Mills and Mining Consumables Alliance Laverton Steel Mill, Melbourne

What was the need?

The No. 2 warehouse crane at the Laverton Steel Mill was designed to load trucks at the north end of the building. The crane is a cabin operated, twin girder overhead travelling crane (25 tonne, 28 metre span). Following changes to the warehouse layout, this crane now loads trucks at the south end instead. The position of the cabin on the south side of the crab meant that operators could not keep the load, the crane chaser and the loading bay all in view simultaneously.

This created an increased risk of damage to trucks or loading bays, and of dropped product resulting in injured personnel (crane chaser).

What did we do?

The project team assessed their options of either rotating the crane crab or rotating the entire crane. Reversing the crab alone would require extensive modifications to the girders and crab plus electrical rewiring, so it was determined that reversing the crane would be faster and of a similar cost.

The end of year holiday break provided a shutdown opportunity, however capital approval was not gained until October, which put the team under significant time pressure.

What was the outcome and how much value did we add?

The works were completed safely and within the shutdown timeframe. The main lift, which involved two, 350 tonne mobile cranes working in tandem (warehouse crane structure lifted out and returned to building), took less than two hours.

Who was involved?

Tudor Mihai (Alliance Project Manager), Nik Westbury (Owners Representative), Garry Cahoon (Site Services), Howard Morley (Structural Engineer), Crane Maintenance Department, Williamstown Crane Hire and IES (Mechanical Contractor).

What did we learn?

Through careful planning and engagement of all key stakeholders, challenging timeframes can be achieved, without compromise on safety or the quality of the outcome.

By working closely with the crane hire company, surveyors, the crane maintenance department, the structural engineering consultant and mechanical contractors, the lift study and Job Safety Analysis (JSAs) were completed. The lifting beams and temporary stands were designed and built in time for the shutdown. All high risk activities were identified and appropriate controls implemented ahead of time.

The project team also managed temporary building modifications (roof removal), electrical disconnections/ reconnections and temporary changes to pedestrian access routes and site roadways.

The owners representative also made a strong contribution by scheduling dispatch activities and managing warehouse crews to provide the necessary downtime and minimise customer impact.

Warehouse No 2 Crane Rotation Sharing Success

15

Coal Prep Plant Tailings Leak Detection Customer

Confidential

Contract Name Location

Engineering Services Alliance Central Queensland

What was the need?

Following a significant uncontrolled release of Coal Prep Plant (CPP) tailings into a nearby waterway at another local mine site, a review was carried out to assess the risk of a similar event at the customerâ&#x20AC;&#x2122;s mine. The review showed that failure of either of the two tailings lines had the potential to result in a spill into an adjacent creek on the lease and further into a local river system. This could create a significant environmental incident.

What did we do?

The WorleyParsons project team developed a solution to this problem by designing and installing a leak detection system that measures and compares tailings flow at the CPP to the output at the tailings storage facility. This was done by installing a remote flow monitoring station at the storage site. Any significant flow variation will immediately shut down the pump and raise an alarm via the control system to allow site operators to respond accordingly.

The remote location of the tailings storage facility presented its own challenges as there was no local power or control tie in available at the site. As running cabling two kilometres long was cost prohibitive, the project team developed a solution using solar panels with battery backup to provide reliable power supply for the flow meters and remote telemetry back to the CPP.

What was the outcome and how much value did we add?

The system was successfully commissioned and has reduced the risk of an environmental incident to as low as reasonably practical (ALARP). The system also has the capability built in to respond differently to a slow or major leak.

This project came into the portfolio as an unplanned high priority that had to be actioned urgently. It was completed on time and for a total installed cost of only $220,000. This provided significant value to the customer and as a result the project was recognised with a special Environmental Award for the project team.

16

Sharing Success Coal Prep Plant Tailings Leak Detection

Tailings storage facility solar panels

Who was involved?

Brian Galea (Project Manager), Shane Hosking (Electrical Engineer), Chris Camilleri (Construction Coordinator) and customer personnel.

What did we learn?

The key to delivering innovative solutions is by engaging the whole team including the customer, as well as engineering and construction personnel.

E4101 Lift Customer

Woodside Energy Limited

Contract Name Location

TWW Maintenance Services Contract Karratha Gas Plant, Western Australia

What was the need?

TW was tasked to undertake an E4101 Lift at the Woodside operated Karratha Gas Plant. The original scope of work was divided into two parts. The first was to cut the header pipes in order to remove the exchanger. This required spading, cutting and welding the process pipe.

The second task was to survey and drill exchanger split line bolt holes on site during the shutdown and then to remove the cowling and reinstate it at fin fan (aerial cooler) bank level.

What did we do?

The project team worked on a number of solutions. These included: • Unbolting header flanges, repositioning header spools and temporary support to enable sufficient access for exchanger removal • Obtaining operations approval to complete internal split line dimensional survey pre-shutdown, enabling holes to be drilled during fabrication off-site

What was the outcome and how much value did we add?

A number of positive outcomes were apparent as a result of this initiative. The project team worked within budget to reduce the schedule duration by approximately 144 hours.

The project minimised the need to work at heights and did not require hot work on the site.

Who was involved?

Bill Gill (TW Superintendent HSE Shutdown team), George Rozis (TW Superintendent) and the TW Mechanical Maintenance Crew.

What did we learn?

This initiative reaffirmed the importance of working safely within a high risk environment. It demonstrates the value in following health and safety guidelines when undertaking projects.

• Modifying the lift study to enable the cowling to be lifted with the exchanger to grade. The cowling was transferred to the new exchanger at grade and reinstated as one assembly

Solution 2

Solution 1

Solution 3 E4101 Lift Sharing Success

17

Jacket and Topside Strengthening Customer

Confidential

Contract Name Location

Confidential Perth, Western Australia

What was the need?

As part of a project which involved the installation of a second platform, the customer engaged the team to complete a series of welding activities on the platform.

These activities were related to the installation of new bridges and included welding activities involving Red Hot Works (RHW) and design changes to pipes, connection panels and structural interfaces.

What did we do?

In this initiative the project team undertook multiple design changes and redesigned a number of connection panels for complex pipes and structural interfaces to allow spools and beams to be moved into position in preparation for welding.

RHW was also undertaken during live hydrocarbon production which contained risk.

The project team worked to develop a comprehensive toolbox of controls and a monitoring hierarchy to eliminate exposure in the highly hazardous environment. A thermal barrier, to mitigate radiant heat whilst working inside the pressurised environment, and the design of new duct connections to sustain continued operation via flexible ducting, to increase the inside pressure, was also constructed to negate the possibility of hydrocarbons entering the complex welding zones.

The collaborative nature of this project throughout the TW/Safehouse relationship provided multiple benefits for the customer: • The development of a new EX rated chiller unit with the capacity to cool the entire habitat covering the air circulation cycles improved the working environment of the habitat • Solar reflective panels were introduced to decrease exposure from radiant heat from the sun, this improved the inside temperature of the habitat and enhanced the cooling capabilities of the EX rated chiller unit • Larger EX rated non-standard access doors to the habitat were introduced to allow ease of access for personnel and equipment, negating tripping hazards from access/egress through the original small door • Fire proof flooring was introduced to negate any possibility of hot slag/sparks burning through the flooring material

18

Sharing Success Jacket and Topside Strengthening

• Introduction of continuous inspection before/after starting work and a full weekly inspection including cleaning the internals of the habitat to negate dust build up • Mock trials of the Safehouse habitats were carried out onshore so that potential problems could be addressed before going offshore • Environmental testing and air quality was carried out onshore and offshore in the welding zone while welding was taking place so that a comprehensive assessment and final evaluation could take place

What was the outcome and how much value did we add?

The project team worked effectively with their onshore team and multiple contractors to deliver an effective and innovative outcome for the customer through a number of solutions, which ensured the safety and integrity of the project. The effort put into the project will provide ongoing value in terms of cost and time savings for the customer.

Who was involved?

This initiative was driven through an integrated approach using the expertise of the offshore and onshore project teams.

What did we learn?

This project is an excellent example of a positive team collaboration effort, which focused on all aspects of integrity and safety and delivered a satisfying and highly successful outcome. The best options available globally to the customer were reviewed up front and, by working collaboratively as an integrated team and by engaging the site teams including operations, improvements continued throughout the lifecycle of the project.

Rigging Demonstration Customer

Woodside Energy Limited

Contract Name Location

Maintenance Service Agreement Karratha Gas Plant, Western Australia

What was the need?

TW undertook a rigging demonstration at the Karratha Gas Plant which demonstrated the correct and incorrect rope tying rigging methods.

Within a work environment there are risks created when health and safety rules and regulations are not followed. TW acknowledged that there is always the need to reaffirm the importance of safety and therefore in outlining the correct rigging method.

What was the outcome and how much value did we add?

Keeping the safety message prominent at the Karratha Gas Plant through initiatives such as this will ensure that safety is always at the forefront of workers minds.

The value can be measured over time â&#x20AC;&#x201C; an educated and informed environment leads to a safe and incident free workplace.

What did we do?

Who was involved?

To ensure the exercise was safe and secure the demonstration was conducted close to the ground within a closed environment.

Tim Greay (TW HSE) and Bill Gill (TW Superintendent, HSE Shutdown team).

Once the rigging was set up with the correct (secured double hitched and single lift) and incorrect rope tying method a photograph was taken. Bright borders were added to the photograph with distinctly outlined signage to ensure the message was clear.

What did we learn?

This demonstration highlights the importance of using correct safety procedures. It is crucial to follow best practice health and safety processes within all workplaces â&#x20AC;&#x201C; this will ensure the ongoing safety of the work environment and its workers.

Correct rigging methods demonstrated at Karratha Rigging Demonstration Sharing Success

19

LNG 1 Pulse Air Upgrade Customer

Woodside Energy Limited

Contract Name Location

Maintenance Service Agreement Karratha Gas Plant, Western Australia

What was the need?

Woodside contracted TW to manage a liquefied natural gas (LNG) 1 pulse air upgrade at the Karratha Gas Plant in Western Australia. For this initiative there were three considerations: 1. Previous maintenance was always done in-situ, working at height and in the operations area 2. There was a large volume of scaffolding 3. It took over 6,900 hours for LNG 3 in 2010

What did we do?

The Pulse Air Manifolds were removed from the Filter Housing via rope access. These were set aside for onsite refurbishment for the September 2012 LNG 2 shutdown.

Fabrication and fit out of new manifolds with all new equipment was completed at grade prior to the shutdown, this was also outside of the operations area. The Major Maintenance Team reinstated, tested and commissioned the new manifolds using rope access teams in-situ on LNG 1.

Pulse Air Manifolds

What was the outcome and how much value did we add?

This initiative included a number of benefits: • Eliminated the need for scaffolding which saved 1,400 hours • Reduced Working at Heights (WAH) by 5,100 hours • Budget manhours decreased by 2,900 hours • Minimised volume of work in operational areas • Reduced the shutdown duration • Will provide the opportunity for the customer to create rotatable pool items

Who was involved?

Ian Wilson (TW Electrical Superintendent) and multiple TW Engineers, Team Leaders, Coordinators and Contractors.

What did we learn?

This initiative reaffirmed the importance of working safely within a high risk environment. It demonstrates the value in following health and safety guidelines when undertaking projects and minimising the risks by initiative and design.

Pulse Air Manifolds 20

Sharing Success LNG 1 Pulse Air Upgrade

Meter Redundancy Cost Saving Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Western Australia

What was the need?

WorleyParsons was contracted by Fortescue Metals Group to undertake a flow meter installation. This involved the installation of six flow meters to measure water addition to the pulping chute and process water from the dewatering screens within the desands plant.

Who was involved?

Simon Hancock (Originator), Azlan Ho (Supervisor) and Brad Bessen (Project Owner).

What did we learn?

This initiative highlighted the importance of following structured business processes. Significant cost and time was saved as a result of this initiative.

What did we do?

After further investigation of the project requirements and through consultation with stakeholders and the project owner, it became apparent that with the installation of the wet front-end (a major project), these flow meters would be redundant. Had we not taken the time to scope out the job this project could have been funded and the flow meters would have been installed whilst adding no value.

What was the outcome and how much value did we add?

As a result of this initiative Fortescue no longer required this flow measurement so the project was cancelled with the project ownerâ&#x20AC;&#x2122;s authority.

Original capital expenditure request was approved for $280,000, it is believed that a cost saving of approximately this amount has been achieved.

Meter Redundancy Cost Saving Sharing Success

21

Tanker Safety Initiative Customer

Boyne Smelter Limited

Contract Name Location

BSL Improve Contract Boyne Island, Queensland

What was the need?

At the Boyne Smelter Limited plant concern was raised over the close proximity of tankers to ignition sources.

To eliminate this risk a project was devised to remove the vehicles and ignition sources within the 20 tonne LPG tanker hazardous area zone.

What did we do?

WorleyParsons worked with Boyne Smelter Limited to map out a scope of work that would result in a safe and cost effective solution. The scope of the tanker safety initiative was to: 1. Install gas leak detection.

2. Install collision protection.

Who was involved?

3. Separate ignition sources from the exclusion zone.

Johan Loubser (Project Lead) and Shane Burns (Project Sponsor).

An options study was also undertaken which presented a number of new alternatives to ensure the environment was safe and that processes would not be interrupted. Through negotiations with the customer, an additional two options were identified to reroute traffic via shared zones.

What did we learn?

What was the outcome and how much value did we add?

The costs for this scope were estimated at between $200,000 to $400,000, with the most likely spend being $220,000. As a result of the options study, the traffic reroute directive reduced the costs significantly with the project team being able to deliver the same value for less than $20,000. This provided a significant cost saving to the customer of $200,000.

22

Sharing Success Tanker Safety Initiative

Working within a team and considering a number of alternatives through an options study can bring out the best result for the customer.

It is crucial to maintain a safe work environment and to instigate any initiatives which may lead to eliminating any potential risk.

Anode Modification Customer

Tomago Aluminium Company

Contract Name Location

Tomago WorleyParsons Alliance Tomago, New South Wales

What was the need?

The modification to anodes would deliver approximately AUD 5 million in savings each year at the plant. Existing best practice solutions were costed at greater than AUD 15 million, along with high maintenance costs that made the project commercially unattractive. A substantially cheaper alternative was identified by the customer and needed WorleyParsons’ assistance to help convert this world first concept to full scale use.

What did we do?

WorleyParsons worked with Tomago to: 1. Build the prototype units based on their design, installing them into the existing equipment and monitoring their performance.

2. Provide advanced modelling of the stresses within the prototype units using the Melbourne Advanced Analysis Group.

3. Repair the prototypes when failure occurred and identify the key sources of these failures using root cause analysis tools.

4. Work with the site’s project team to address these sources of failure and modify the prototype designs to incorporate these improvements.

5. Build and install the long term equipment that includes all of the prototype learnings and monitor its performance with the plant over a three month period.

6. Hand the equipment over to the plant for ongoing use including maintenance procedures, spare parts and training.

What was the outcome and how much value did we add?

The project was completed with no recordable incidents for less than $1.5 million in an 18 month timeframe. The modification is now delivering its expected savings for the plant. Additional maintenance costs per year (compared with previous best practice solutions) were reduced by approximately 90%.

The project’s cross functional team was extremely effective with leadership and representatives from the site, third party designers, the Advanced Analysis Group and WorleyParsons Improve all working together. The features of this project that made it successful included: 1. It enabled a Tomago Aluminium Company proprietary world first design to be upsized to industrial scale within an extremely short development period using our embedded Improve team.

2. It required a range of Improve capabilities including engineering design, construction management, failure analysis and operational readiness to deliver a world first piece of equipment for long term use.

3. Valuable support was available from our WorleyParsons Advanced Analysis and Asset Management teams to help improve the customer’s prototype designs in a quick and timely manner.

4. It generated significant value to Tomago Aluminium Company and justified their inclusion of the WorleyParsons Improve team in their innovation projects to deliver successful outcomes.

Who was involved?

Aaron Arthur (WorleyParsons lead), Colin Thompson, George Sarvay, John Shaw, Ron Peterson, Mark Schofield, Rob Kenny and Mick Byrne (Engineering and Coordination).

What did we learn?

WorleyParsons participation in site innovation teams can deliver substantial gains for the customer. Rapid improvements to prototype equipment are possible using on site resources while minimising cost. Strong expertise is available from other WorleyParsons teams to support this innovation work and deliver even greater value to the customer.

Anode Modification Sharing Success

23

Reservoir Pump Pads Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Perth, Western Australia

What was the need?

The WorleyParsons Sustaining Capital team on site was requested to undertake the construction of multiple transfer ponds. These included West 1, West 2, Long Saline, Long Brackish and Long Settlement Pond. The construction process required the use of transfer pumps with concrete pump pads to capture the leakage of any hydrocarbons from the pumps.

What did we do?

After assessing their options, the Sustaining Capital team identified that transfer pumps with a reservoir would eliminate the need for concrete pump pads as all the hydrocarbons from potential leakages would be captured within the pump itself.

The team sent a technical query to Water Management at Fortescue who endorsed the proposal after realising the potential savings that could be achieved.

A total of 28 pumps were ordered for the five ponds and for two central pond upgrades at Fortescue.

Sykes CP300i Transfer Pump

What was the outcome and how much value did we add?

The use of transfer pumps with reservoirs eliminated the need to purchase concrete pump pads. The proposal by the Sustaining Capital team provided savings of $440,000 for the customer.

Who was involved?

Lee Hunt (Originator), Reuben Joseph (Supervisor), Paul Ridout (Discipline Owner) and David Aston (Fortescue GM Sustaining Capital).

What did we learn?

Built in reservoir that retains 100% of hydrocarbon spills

24

Sharing Success Reservoir Pump Pads

This initiative highlights the commitment of the Sustaining Capital team to delivering the most valuable and cost effective solutions to their customers.

Exchanger Bolts Study Customer

Woodside Energy Limited

Contract Name Location

Maintenance Service Agreement Karratha Gas Plant, Western Australia

What was the need?

An engineering study to review the exchanger bolts was conducted at the Woodside operated Karratha Gas Plant.

This initiative created health and safety issues as it required the management of heavily weighted materials. The issues included: • Forty stud bolts to be manually handled twice from the second level of Train 5 • Stud bolts weighing 68kg each • Total manual handling weight 2.7 tonnes Careful planning was needed for this project to be successful and without incident.

What did we do?

With safety being the highest priority for this initiative the project team worked towards a solution that would also be timely and cost effective.

The TW project team provided the following solutions: • Night shift engineered out the risk, by ratchet strapping the stud bolts to the bonnet whilst still in the holes • The engineered lift study was revised to enable the bonnet and stud bolts to be removed in a single lift

What was the outcome and how much value did we add?

Who was involved?

Paul Bartlett (Shutdown Senior Coordinator), Phil Cox (Mechanical Coordinator) and Grant Dowham (Cranage and Rigging Coordinator).

What did we learn?

This initiative is an example of how efficient project planning and scheduling and a focus on risk leads to an effective and safe result.

The safe handling of materials and efficient project schedule delivered a successful result for the customer. There were a number of benefits that were a direct result of this initiative including: • Reduced 5.4 tonnes of manual handling • Reduced duration of task, with 24 hours saved • Reduced Working at Height (WAH) activities

Exchanger Bolts Study Sharing Success

25

Leveraging off the Improve Site Team for Fast Delivery of a Major Project Customer

Tomago Aluminium Company

Contract Name Location

Tomago Aluminium WorleyParsons Alliance Tomago, New South Wales

What was the need?

Tomago Aluminium (TAC) identified an opportunity to significantly reduce the risk profile across their switch yard by establishing a Swing Rectifier unit between potlines one and two.

The solution required suitable high voltage switch gear, foundations, potline and substation controls, approximately 500 metres of secure smelter busbar systems and the relocation and recommissioning of an existing 250 tonne transformer/rectifier unit.

The value of the project was determined by how quickly the new unit could be brought online.

The TAC’s unique design

What did we do?

What was the outcome and how much value did we add?

The existing site Improve operations team was requested to deliver this major project on a fast track basis. Collaborating effectively with TAC, the team mobilised immediately to allow an initial project meeting to occur on the next business day.

• TAC project owner, technical, maintenance and operational personnel

TAC was able to begin the project quickly and confidently.

The team delivered a unique design that allowed progressive procurement and execution to be completed as early as possible. With the development of appropriate governance processes, the project maintained risk management and control of the gated process. Thorough gate documentation enabled TAC to make appropriate project decisions and the project was stopped when another risk mitigation option arose during project execution.

• Regional office support for Project Management and Structural Engineering and Project Administration

Who was involved?

• A busbar design team located in the Geelong office

Chris Lovelock (Improve Contract Manager), Brian Crossingham (Project Director), Peter Kershaw (Manager of Projects) and Ben Stephenson (Project Manager).

An integrated project team was established that included: • The existing site Improve team

• Busbar modelling and analysis from the Advanced Analysis Group in the Melbourne office Through working closely with the integrated project team they were able to:

What did we learn?

1. Deliver decision support packages to a schedule that ensured no delay in procurement and execution progress.

WorleyParsons provided strong capability to deliver an outstanding result and value to TAC. This project demonstrated that resources from multiple locations can be effectively integrated with the site team to provide a seamless result. The Improve team demonstrated they can provide an established base to enable a major project to be initiated quickly and safely on site. Broader WorleyParsons capability can be readily and rapidly accessed via the existing long term Improve relationship. In combination with site experience and processes, the resulting team can take on significant customer challenges.

2. Collect detailed design work associated with busbar fault current calculations and complex civil engineering design to be transported between specialist offices.

3. Improve field execution based upon established site Improve construction and HSE management processes.

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Sharing Success Leveraging off the Improve Site Team for Fast Delivery of a Major Project

â&#x20AC;&#x153;This is an excellent example of our ability to draw upon the specialist skills of the wider WorleyParsons to provide a solution on-site.â&#x20AC;?

Ivan Cauley - Director Improve AEP & AUW

Sharing Success

27

Energy Efficient and Greenhouse Gas Porfolio Optimization Customer

Vale Coal Australia

Contract Name Location

Global Framework Agreement Hunter Region, New South Wales

What was the need?

Integra Coal (owned by Vale Australia) located near Singleton in the Hunter Valley produces semi hard coking coals and thermal coals for the export market. Coal is mined from an underground and open cut mine. The underground mine is a modern long wall operation and was started in 1999.

The overall objective of this project was to develop a greenhouse gas (GHG) and Energy Efficiency Plan. This involved identifying the most cost effective energy efficiency improvements and completing the capital expenditure processes to assist in implementation. The ultimate goal of this initiative was to improve the long term cost competiveness of Vale Integra’s operations by reducing the energy and GHG intensity of key processes.

What was the outcome and how much value did we add?

Through the GHG and Energy Efficiency Plan we developed and delivered additional value to Vale’s operations by: • Providing a clear and defensible plan for the optimal utilisation of Vale’s corporate funding • Reducing energy and GHG intensity across Integra’s Operations, equating to cost and energy savings • Reducing GHG liability for the mine and corporation • Identifying and managing a wider array of risks that impact on Vale’s operations

What did we do?

• Improving and supporting decision making where tradeoffs existed between technical, social, environmental and economic performance

The Project was delivered in partnership with Vale over three broad phases:

• Ensuring all projects contribute to the customer’s profit and sustainability outcomes

1. Established a Practical Opportunities Register

Who was involved?

--Reviewed all existing GHG and energy efficiency opportunities --Investigated the practical implications of each project --Revised costs and benefit estimations for each opportunity --Identified new high value GHG abatement opportunities 2. Assessed and Prioritised Opportunities --Developed decision making criteria for prioritisation of opportunities --Qualitatively assessed, screened and prioritised all opportunities

WorleyParsons: Daniel Heinrich (Project Director), Rob Hynes, Jonathan O’Toole and Chris Hamilton (Consultants).

Vale Integra: Environmental and Engineering Teams.

What did we learn?

The importance of optimising your project portfolio to ensure it incorporates factors such as GHG emission abatement and employee feedback (on project practicalities). This attention can alter the project mix within the portfolio and lead to improved financial outcomes.

3. Developed GHG and Energy Efficiency Plan --Developed shortlist of viable projects with attractive payback, and achieved consensus on project shortlist --Gathered detailed information and quotes for shortlisted projects and completed preliminary risk assessments for projects --Completed Vale’s capital expenditure processes for selected projects --Developed GHG and Energy Efficiency Plan for implementation at Vale Integra 28

Sharing Success Energy Efficient and Greenhouse Gas Portfolio Optimisation

Fire Water System Upgrade Customer

Boyne Smelter Limited

Contract Name Location

BSL Improve Contract Boyne Island, Queensland

What was the need?

WorleyParsons was contracted at the Boyne Smelter Limited plant to undertake work on a Freshwater Pumphouse. The purpose of the project was to upgrade the fire water system at Boyne Smelter Limited.

What did we do?

The WorleyParsons project team undertook a feasibility study to objectively uncover the strengths and weaknesses of the existing fire water system and to outline any opportunities or threats presented by the environment. The feasibility study highlighted the resources required to carry through the upgrade, and ultimately the prospects for success.

At the funding stage, an opportunity review was undertaken to analyse value and costs. It was found that approximately 95% of the project value could be maintained by completing 70% of the project scope.

What was the outcome and how much value did we add?

The fire water system upgrade was a resounding success with the project team working effectively together towards a common goal. With the initial opportunity review WorleyParsons was able to offer the customer significant up front savings. The cost estimate to complete the work was reduced from AUD 1.2 million to AUD 863,000. The project led to a total capital expenditure saving for the customer of AUD 337,000.

Who was involved?

Syed Quadri (Project Leader), Shane Burns and Clive Butler (Sponsors).

What did we learn?

The opportunity review offered an instant saving for the customer. The project team at WorleyParsons conducted the feasibility study and the upgrade to the fire water system with efficiency and within budget. The successful management of the upgrade led to significant value add and cost savings for Boyne Smelter Limited.

Freshwater Pumphouse Fire Water System Upgrade Sharing Success

29

Ash Hopper Redesign Customer

TW Power Services for Verve Energy

Contract Name Location

Collie Power Station Collie, Western Australia

What was the need?

The boiler furnace ash hopper was reaching the end of its operational life at the Collie Power Station. The station entered service in 1999 and the Submerged Drag Chain Conveyor (SDCC), which removes ash from below the boiler furnace, had suffered the effects of its harsh operating environment. Years of extreme radiant heat, clinker thermal explosions, coupled with acidic ashing water and occasional impact from clinker drops had taken its toll.

During the last few years WorleyParsons was involved in keeping this plant serviceable by attending to the list of defects and application of additional steel to restore its integrity. In June 2011 WorleyParsons was contracted by TW Power Services (TWPS) to redesign the ash hopper.

The plan was to have the new hopper designed, fabricated and installed by the end of November 2011. Normally a project like this would take considerably longer and it was therefore necessary to form a good working relationship with the company selected to fabricate and install the new SDCC. The program did not allow time for tendering to a completed design, and Downer EDI Engineering in Bunbury was chosen to carry this out, which they did effectively.

What did we do?

A modular approach was used to ensure the removal and installation methodology matched. The tight program meant that the fabrication commenced on the first modules before the design was complete on the later ones.

The final modules were delivered to site after the plant outage had commenced, by this time the old SDCC was no longer capable of re-use. Normally power plant replacement projects do not commence until the replacement equipment is clearly available. This project was potentially the critical path for the plant outage.

The site works were also affected by the requirement to refurbish some of the ash plant equipment whose condition was not readily discernible until the plant had been shut down.

A round the clock work pattern was established.

Despite late permits and poor weather, the installation of the new modules was carried out with a minimum of issues and the program was recovered with the scraper being run with a couple of days to spare.

30

Sharing Success Ash Hopper Redesign

What was the outcome and how much value did we add?

The project went from receipt of order to commissioning within six months. Few technical queries were raised and the number of site based alterations to the design were minimal; an indication of the quality of this project. A commissioning visit from the Sydney based design engineer pronounced the scraper operation as smooth and the quietest he had heard.

Who was involved?

John Foster (WA Project Manager), Peter Vierboom, Bob Williamson, Hirak Dutt, Gabriel Berge, Doug Gibb (Sydney Design), Glenn Morgan, Nam Do (Site Installation) and Justin West and Glyn Francis (Fabrication and Installation - Downer EDI Engineering Bunbury).

What did we learn?

This initiative demonstrates how important it is to have the right staff and how their skills and experience can have a positive impact on the projectâ&#x20AC;&#x2122;s success.

Mobile Platforms Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Western Australia

What was the need?

WorleyParsons was contracted by Fortescue Metals Group to install permanent walkways to access the photoelectric (PE) cells during cleaning and maintenance at the train load out facility.

These PE cells were located at different rail links varying from 2.3 - 5.2 metres above the ground.

What did we do?

The WorleyParsons team investigated the possibility of building permanent platforms located north and south of the train line. Within this study, the time of construction and cost to the customer were taken into consideration. The project team concluded that a permanent platform would require the relocation of numerous cable trays and could obstruct the PE eel/lasers, affecting train loading operations, which could lead to catastrophic results.

What was the outcome and how much value did we add?

As a result of the investigation Fortescue decided to use lightweight aluminium mobile platforms, purchasing and assembling two platforms for each side of the track. One of these platforms was 1.5 metres high and the other was three metres high. These two levels cover the extensive range of PE cell levels.

What did we learn?

We learnt the importance of working collaboratively with the customer to achieve a successful end result.

This initiative displays the importance of taking into consideration the health and safety of a working environment and how taking the correct preventative measures, promotes a safe workplace.

The investigation resulted in significant cost savings of $190,000 delivered to Fortescue.

Who was involved?

Patrick O Connor (Originator), Azlan Ho (Supervisor) and Scott Sayer (Project Owner).

Mobile Platforms Sharing Success

31

Safety Hazard Identification Customer

Tomago Aluminium Company

Contract Name Location

Tomago WorleyParsons Alliance Tomago, New South Wales

What was the need?

Safety is at the forefront of any activity WorleyParsons carries out. During a review of an equipmentâ&#x20AC;&#x2122;s maintenance strategy, it was identified that a potentially serious hazard was present during execution of preventative maintenance activities at the Tomago site in New South Wales.

Activities required to be undertaken on this project included: inspections, repairs and replacements of mechanical and electrical components, and cleaning of excess product in and around a scissor action lift table, which raises and lowers by means of a hydraulic cylinder.

The procedures had directions to raise the table to its fully extended height then isolate electricals only. This posed a threat to workers of having to work under a suspended load with no form of mechanical fall prevention for the table.

What did we do?

The identified hazard had potentially serious consequences.

WorleyParsons notified Tomago Aluminiumâ&#x20AC;&#x2122;s reliability leader for the business unit and the Senior Engineering Manager of the seriousness of the issue.

What was the outcome and how much value did we add?

The Tomago Aluminium Company representatives followed up the issue with the business unit. The hazard was communicated to the relevant work teams and as a result, steps are now in progress to redesign the table with mechanical locking methods and to improve administrative and procedural controls.

Who was involved?

Richard Ling (WorleyParsons) and Paul James and Jason Couper (Tomago Aluminium).

What did we learn?

To highlight how important it is to be aware of all potential safety hazards and improvement opportunities when reviewing maintenance procedures and methods. It is also vital to act quickly when hazards are identified.

Following up as a course of action is crucial to ensure improvements are communicated effectively and carried out to completion.

Raised lift table Hydraulic lift cylinder and work area Please note that the equipment in these photos are normally guarded. The guards were removed for maintenance when photos were taken.

32

Sharing Success Safety Hazard Identification

Oxalate RTO/Kiln Project Customer

Alcoa Wagerup Refinery

Contract Name Location

Wagerup ESP Improve Contract Waroona, Western Australia

What was the need?

The alumina refining process creates a by-product called oxalate that needs to be removed from the liquor stream.

Alcoa’s existing waste storage pond for oxalate was filling up therefore requiring the re-commissioning of the existing kiln with new downstream scrubbers and Regenerative Thermal Oxidiser (RTO) plant.

The project was commenced in 2005 by the previous engineering provider, however after the completion of design, procurement and civil works, it was placed on hold in 2007. WorleyParsons restarted the project in mid-2010.

What did we do?

WorleyParsons reconciled the project, assessing the extent of remaining work to formulate an implementation plan that would deliver on Alcoa’s project expectations. A balance of scope installation contract was tendered and awarded with work commencing early in 2011. After 14 months, the project was complete, commissioned and in service.

In addition to the new construction scope, the previously decommissioned kiln was refurbished and upgraded with a new burner management system and feed manifold.

There were a number of difficulties associated with completing the previously on hold project including: restoration of rotating equipment left stationary for a long period of time, and addressing the shortfall in prefabricated steelwork and piping. Design issues also resulted in a high level of extra work, requiring a disciplined scope change regime.

Maintenance engineering delivery was performed by the WorleyParsons Improve Asset Management Services group with procedures, materials lists and maintenance plans prepared prior to commissioning.

Also outstanding was the completion of Safety Lifecycle Design verification work, this detailed review of the design and operating systems, undertaken to ensure compliance with AS IEC 61511, was completed by the WorleyParsons safety and risk group.

The project was commissioned using an integrated project team that used a number of experienced Alcoa operations personnel and specialist equipment vendors. This included the burner management system that required detailed proof testing and certification from the independent Gas Supervisor and Statutory Inspector.

The project was able to retain a strong focus on its HSE performance over 80,000 construction manhours.

What was the outcome and how much value did we add?

Despite the challenges associated with a ‘cold case’ project, the final commissioning tasks were completed without incident and the plant successfully entered service.

Aside from delivering on the stated project outcomes, the project has provided an opportunity for the involvement of other parts of WorleyParsons at Alcoa as an early demonstration of our value adding capability.

Who was involved?

Andrew Moulds (Project Team Leader), Prashant Kondhalkar (Commissioning/Electrical Engineer), Brett Gillespie (Maintenance/Commissioning Engineer), Fred Polinelli (Alcoa Senior Capital Engineer), Brian Still (Alcoa Asset Owner), Bruce Garwood (IMS Construction Superintendent) and Geoff Lane and Mike Dean (Senior Risk Engineers).

What did we learn?

The project was one of the first for the new Improve contract at Alcoa and provided the opportunity to build relationships and cooperation through the structure of the integrated project team. Lessons learnt from its delivery have been applied to the next suite of projects.

Oxalate RTO/Kiln Project Sharing Success

33

Devil Creek Gas Plant As-Built Drafting Customer

Apache

Contract Name Location

Apache Alliance Perth, Western Australia

The HVE team at work in Hyderabad

Typical As-Built mark up

What was the need?

By completing this workshare opportunity the contract has been able to provide a quick turnaround to ensure the customerâ&#x20AC;&#x2122;s expectations have been met with the benefit of additional cost savings of 50% against the agreed contract schedule of rates.

In February 2012 the Improve Contract Manager, Hugo van Leeuwen was approached by Apache to provide CAD drafting of As-Built redline mark-up instrument and electrical drawings for the Devil Creek Gas Plant.

What did we do?

Hugo approached the Manager of Improve Workshare AUW, Allan Perryman, to see if this work could be implemented in one of the WorleyParsons High Value Engineering (HVE) centres. After confirming the arrangement details with the workshare manager in Hyderabad, a service order was received from Apache on 13 March and the first work release package (WRP) initiated work began on 21 March. The originals were provided in AutoCAD format and all redline mark ups were provided in PDF format by Apache and loaded onto the new AUS Workshare portal by the Home Office (HO).

What was the outcome and how much value did we add?

The first WRP (Workshare Release Package) was completed in April and a second WRP of approximately 452 electrical drawings followed shortly. The completion of this work in Perth would have required the mobilisation of a new team resourcing and office space would have been an issue.

34

Sharing Success Devil Creek Gas Plant As-Built Drafting

Who was involved?

Simon Whalley (Engineering Manager), Allan Perryman (Manager of Workshare Improve Australia West), Subramanya Narayana Kanakatte (Support Office Lead Engineer), Srinivasu Thuraga (Project Services and Workshare Manager) and Hugo Van Leeuwen (Improve Contract Manager).

What did we learn?

Workshare is an ideal way to provide flexibility, enable contracts to take on unplanned work, overcome resourcing issues and deliver high quality outcomes. It can also provide significant cost savings to our customers by drawing upon our workshare capability at our HVE Centres.

The use of the dedicated Australian workshare portal (SharePoint site) enabled effective transfer of information.

EAF Dust Treatment Customer

OneSteel

Contract Name Location

OneSteel WorleyParsons Alliance Sydney Steel Mill, Rooty Hill, New South Wales

To support this process, a shed was constructed to house the facility and to enable operation of the facility in all weather conditions.

What was the outcome and how much value did we add?

These initiatives provided OneSteel with a cost effective solution, which was implemented at a total installed cost of $1.85M against an initial design cost estimate of $4M. This provided cost savings to OneSteel of $2.15M.

Sydney Steel Mill, Rooty Hill

What was the need?

At the OneSteel Sydney Steel Mill baghouse in Rooty Hill, there were fugitive emissions occurring during loading, unloading and transportation of Electric Arc Furnace (EAF) dust. EAF is a dust that contains both valuable and hazardous metals and needs to be transported in an environmentally friendly manner.

For the dust to be unloaded and transported without raising environmental concerns, the Sydney Steel Mill had to provide EAF dust in a granulised form to its recipient, Nyrstar.

What did we do?

WorleyParsons project team worked closely with OneSteel to make sure the EAF dust transportation was managed in-line with environmental standards. An operating agglomeration facility for the EAF baghouse dust consisting of a cement delivery system, a water supply system and other auxiliary systems were subsequently developed. These were put in place and a concreted area in SteelStone premises was built to store, handle and load dust agglomerate into trucks. The truck loading area was also separated from the agglomeration facility baghouse operations whilst an alternative method for handling and storing dust was developed. Bin aerators were installed to stop the dust flow during the process commissioning phase in the dust discharge chute from the silo.

The project team delivered the project on time with early development approval before CAPEX lodgement saving time, in budget, with no injuries and with zero environmental incidents.

Who was involved?

Paul Oâ&#x20AC;&#x2122;Kane (Project Owner), Zheshi Jin (Project Ownerâ&#x20AC;&#x2122;s Representative), Vineet Pruthi (Project Manager), Tracey Mahon (Plant Owner), Mark Francis (Commissioning), Bryan Stalder (Mechanical Engineer), Gareth Williams (Civil Engineer), Daryl Rodgers (Electrical Engineer) Pankaj Kumar (Drafting) and Michael Van Balkom (Project Controls).

What did we learn?

This initiative outlines the importance of having high-level collaboration in a project team and promoting frequent communication (formal and informal), trust, relationship and risk management, a shared responsibility and working together in partnership.

EAF Dust Treatment Sharing Success

35

Castle Camp 500 Person Upgrade Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Western Australia

What was the need?

Who was involved?

WorleyParsons was tasked by Fortescue Metals Group to undertake the Castle Camp 500 Person Upgrade Project to take the camp facility from an exploration camp to a 500 person construction camp.

Kobus Oosthuizen (Originator), Scott Robinson (Supervisor) and Doug Banfield (Project Owner).

The core objective of the project was to project manage, design, procure and erect the camp within a budget of $24Â million. The camp also needed to be completed within 20 weeks from the project initiation stage.

What did we do?

WorleyParsons listened to the needs of the stakeholders and challenged the traditional contracting strategy in an attempt to reduce construction costs. WorleyParsons worked closely with Fortescue to ensure that their requirements were met on time and within budget. Traditional rates based contracts were therefore substituted for fixed price plus incentives contracts.

What was the outcome and how much value did we add?

The construction was completed and the camp accommodation handed over five weeks ahead of schedule.

The reduced construction time represented a substantial cost saving for Fortescue. There were also no variation claims.

The revised contracting strategy and subsequent reduction in construction duration realised a $920,000 cost saving.

With the incentive for contractors to shorten their schedules, a 500 person kitchen and dining facility was installed and commissioned in one week through the use of modularisation.

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Sharing Success Castle Camp 500 Person Upgrade

What did we learn?

This upgrade project highlighted the importance of listening to the requirements of customers and thinking outside the box. It also demonstrated the strength of the working relationship between WorleyParsons and Fortescue.

Engine Operating Temperature Reduction Customer

Horizon Power

Contract Name Location

Exmouth Power Station Exmouth, Western Australia

What was the need?

During periods of high ambient temperatures in Exmouth in North Western Australia the engine temperatures rise to a level where the engines must be de-rated to avoid overheating. This de-rating makes it more difficult to meet the electricity demand, which is at its highest with air conditioning load on the high temperature days. In addition, back up diesel generators are required to meet the high demand when the natural gas engines have been de-rated.

What was the outcome and how much value did we add?

This system gives a 5째C reduction in engine temperatures and allows the engines to run in ambient temperatures in the high 40s. This makes it much easier to meet the maximum contract demand (MCD) for electricity and maintain the contractual obligations. It also lessens the potential for contractual penalties as a result of not being able to meet the MCD. In addition, the use of expensive and less environmentally friendly diesel fuel is minimised.

What did we do?

A reverse osmosis plant and water softener were installed to treat the scheme water, which is very high in calcium and would otherwise foul the equipment in its raw state. This treated water is then fed to a clean water tank where it is stored in bulk until required. When required, a pump and reticulation system sprays the treated water on the radiator banks of all engines, contributing to the cooling effect.

It is difficult to put a dollar figure on this initiative as there are so many variables - it has the potential to save hundreds of thousands of dollars over the remaining contract period.

Who was involved?

Keith Porter (Exmouth Power Station Operations Manager).

What did we learn?

Taking the time to understand the plant and the need to meet the contractual obligations, and making the small investment of time and money significantly makes a difference over the long term.

Engine Operating Temperature Reduction Sharing Success

37

Rock Armour Solution Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Perth, Western Australia

What was the need?

WorleyParsons Sustaining Capital team on site was requested to undertake the construction of multiple transfer ponds. These included West 1, West 2, Long Saline, Long Brackish and Long Settlement Pond. The design required a significant amount (16,290 tonnes) of 400mm and 40mm facing class rock armour to protect the ponds and to use for overflow systems.

What did we do?

The quote from the closest source of conforming rock (Newman) was $1.45 million. The Sustaining Capital team on site recognised an opportunity to present value to Fortescue by sourcing an alternative solution to the large amount of rock required for construction.

At the request of the team, the engineers amended the design of the ponds allowing a lower grade rock to be used in the construction of the pond designs. These new amendments allowed the rock to be sourced from a nearby mine site. The Sustaining Capital team also sourced rock from the borrow pit on site.

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Sharing Success Rock Armour Solution

What was the outcome and how much value did we add?

By redesigning the engineering of the ponds, the team were able to use a cheaper alternative to the original rock while maintaining the engineering integrity at the pond, providing significant savings to Fortescue.

The Sustaining Capital team were able to acquire the rock, including delivery, for free; the outcome provided a saving of $1.45 million to Fortescue.

Who was involved?

Lee Hunt (Originator), Reuben Joseph (Supervisor), Paul Ridout (Discipline Owner) and David Aston (Fortescue GM Sustaining Capital).

What did we learn?

The Sustaining Capital team was able to deliver significant value to Fortescue by providing solutions outside of the original project scope.

Project Template Updates Customer

Boyne Smelter Limited

Contract Name Location

BSL Improve Alliance Boyne Island, Queensland

What was the need?

A project management opportunity was identified at Boyne Smelter Limited (BSL) to improve document templates.

Through analysis of the current project management processes in place, it became evident the current templates could be improved. By updating and standardising the current templates, time efficiency gains were possible.

What did we do?

The project team set aside time to establish a Value Stream Map, to review the current project management processes at BSL. In addition, a standardised template was prepared to ensure a common format across the documents. The guidelines included standardising fonts, spacing, layout, indexing, tracking and version control.

By updating the templates and following the implemented guidelines, the project team was able to eliminate duplicates and improve document management consistency. The creation of new standardised templates established more efficient project management processes.

What was the outcome and how much value did we add?

This project is an example of the WorleyParsons project teamâ&#x20AC;&#x2122;s vital role towards continuous improvement within the BSL Improve Alliance. Although it is difficult to measure specific customer value for this initiative, it is clear that an improvement has been made and that time and cost savings have been captured and will be ongoing.

Who was involved?

Michael Upton (Project Leader) and Ben Vandenberg (Sponsor/Champion).

What did we learn?

Redesigning project templates can help staff create accurate business communications quickly and efficiently. Templates are designed to reduce repetitive tasks and save time and money.

Boyne Smelter Project Template Update Sharing Success

39

Coal Mill Baghouse and Duct Insulation Customer

Nyrstar Port Pirie

Contract Name Location

WorleyParsons Nyrstar Port Pirie Alliance Port Pirie, South Australia

What was the need?

During the cold winter months the temperature within the coal mill at Port Pirie drops below the dewpoint temperature of the circulating air. Significant heat can be lost in the ducting of the circulating air as a result.

It was identified that insulating the baghouse and ducting would result in an increase in the temperature of the circulating air and would eliminate the water condensing out of the air and entering the coal. This condensation resulted in wet coal which created significant plant downtime issues.

The logistics of insulating the ducting were particularly complex due to accessibility issues. Erecting scaffolding and associated work platforms was one of the major challenges in the plant.

The Port Pirie plant is also an intrinsic safe area due to risk of explosion of the fine coal prohibiting any hot work in this plant, thus requiring special implementation materials and methodology.

What did we do?

The WorleyParsons project team worked with Nyrstar to source the best product for the plant. An insulation product was identified by the project team which could be attached to the structure using adhesive.

Before 40

Sharing Success Coal Mill Baghouse and Duct Insulation

What was the outcome and how much value did we add?

The temperature in the baghouse was subsequently maintained at, or above, the dewpoint of the air. This resulted in significant improvement in plant availability.

The project was also completed within budget, on time before the onset of winter without incident.

As a result, the scope was increased to extend the insulation to other duct work. This was also managed within the approved budget.

Who was involved?

Jack Khallahle (Project Leader) and Leith Gulin (HSE Construction Supervisor).

What did we learn?

This initiative highlighted the importance of ensuring that the total scope of a project is agreed in detail before a project commencement point.

After

Automated Oil-Water Separator Review Customer

Boyne Smelter Limited

Contract Name Location

BSL Improve Contract Boyne Island, Queensland

What was the need?

Who was involved?

WorleyParsons was contracted by Boyne Smelter Limited to undertake a feasibility study and deliver an automated oil-water separator. An oil-water separator is designed to separate large amounts of oil and suspended solids from the wastewater effluents of oil refineries, petrochemical plants, chemical plants, natural gas processing plants and other industrial sources.

Luke Barnard (Project Lead) and Shane Burns (Sponsor/ Champion).

What did we do?

What did we learn?

Following business processes and working collaboratively delivered cost and time savings and an outstanding result for Boyne Smelter Limited on this project.

The WorleyParsons project team conducted a feasibility study which was to determine if the initiative was technically feasible within the estimated cost. The study highlighted weaknesses or threats presented by the environment which can hinder prospects for success.

WorleyParsons also undertook an opportunity review of the project. The opportunity review identified that the cost of the automation component was $90,000 of the $170,000 estimate. This review also identified that automation would not lead to any real savings for the business.

What was the outcome and how much value did we add?

As a result of the opportunity review, the project was rescoped and the cost estimate to complete the work was reduced to $80,000. The re-scoping of the project provided a significant cost saving to the customer of $90,000.

Project Template Update Sharing Success

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Turkey’s Nest Elimination Customer

Fortescue Metals Group

Contract Name Location

Fortescue Sustaining Capital Alliance Western Australia

What was the need?

The original scope of work for the 10 Christmas Creek Water Distribution Project was to install a turkey’s nest and two hard stands. The hard stands needed to be designed for a 777 water cart and for one six-wheeler vehicle.

A turkey’s nest dam is a circular wall that is built from earth obtained from outside the structure. The nest is then filled from flowing or pumping bores. With the construction of a turkey’s nest, diversion roads needed to be constructed to make way for flinders pit and light vehicles and to allow water carts with a safe location to fill. The road designed for the water carts was located 500 metres away from the pump – action needed to be taken to ensure constant high water pressure was delivered from the pump to the carts.

The pump presently remains on and circulates constantly above 350kpa. The stand pipe is currently used with ease by opening the isolation valve giving steady pressure and high water flow.

What was the outcome and how much value did we add?

The end result was a constant high pressure at the stand pipe 500 metres away from the pump. This means that the pump also doesn’t have to be switched off every time a truck needs to fill.

This project resulted in a total saving of $600,000 for the customer.

What did we do?

Who was involved?

In the past, the only way to install fast flow stand pipes was to build a turkey’s nest or have an inline stand pipe on a high flow main water line. This would have taken significant time and been expensive to construct.

Daren Houghton (Originator), Andrew Duff (Supervisor) and Brad Bell (Discipline Owner).

The WorleyParsons project team saw the need to change this process and worked with Fortescue Metals Group towards a more cost and time effective solution. The WorleyParsons team left the pipe stand pump in its original location and installed a pipeline next to the haul road to the new stand pipe location with an isolation valve just behind the stand pipe. A pressure relief valve at the pump was also installed so that pressure could be at a constant 350kpa (kilo pascals).

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Sharing Success Turkey’s Nest Elimination

What did we learn?

This project highlighted the value that can be created by implementing smart, well thought out processes. As a result, time and cost savings were substantial for the customer.

PIS ISO Workshare Initiative Customer

Hydrocarbons Customer

Contract Name Location

Engineering Services Contract Western Australia

What was the need?

The customers’ inspection department contracted WorleyParsons to develop Plant Inspection System Isometrics (PIS ISOs) for site system inspections at the customer’s location. The PIS ISOs needed to be created using information from existing plant isometric drawings.

What did we do?

In February 2012 the Improve Operations Manager, Chris Walsh, approached the workshare group to see if this work could be implemented in one of the WorleyParsons High Value Engineering (HVE) centres. By the end of February initial discussions with the workshare team in China had been carried out and approval had been received from the customer to proceed.

The WorleyParsons team was able to implement the system effectively, allowing the work scope to be defined quickly and the first work release package to be initiated two weeks later in March.

The support office focal point, Hong Zang and his team in Chengdu were responsible for delivering the initial trial work pack consisting of 88 drawings estimated at approximately 120 hours. The new drawings were produced by combining information from the existing plant isometrics and including additional information requested by the inspection department with one new isometric for each line number.

What was the outcome and how much value did we add?

By conditioning this workshare opportunity the new drawings were completed within two weeks. The quality and quick turnaround of the initial trial ensured the customers’ expectations were met with the benefit of significant cost savings and further packages to continue throughout the year.

Who was involved?

Chris Walsh (Improve Operations Manager, ANZ Western Operations), Allan Perryman (Manager of Workshare Improve Australia West), Peter Zhang (Manager of Workshare, China), the Workshare team in China, Hong Zang (Support Office focal point) and Jason Bingham (Project Interface Engineer).

What did we learn?

Workshare is an ideal way to overcome resourcing issues whilst still delivering high quality outcomes and allowing our contracts to grow.

By drawing upon our workshare capability at our HVE centres we can provide significant cost savings to our customers.

The HVE team at work in Chengdu PIS ISO Workshare Initiative Sharing Success

43

External Anode Supply Customer

Boyne Smelters Limited

Contract Name Location

BSL Alliance Boyne Island, near Gladstone, Queensland

What was the need?

The process of smelting aluminium requires carbon anodes to be the sacrificial element in melting the alumina to a molten mass of aluminium. As part of the plant operation Boyne Smelters Limited (BSL) forms and bakes the anodes needed to melt the alumina. The furnaces that bake the anodes had deteriorated over time and problems were being encountered during the refurbishment of the furnaces as they were not able to bake sufficient anodes daily to meet the need of the smelting process. The WorleyParsons project team had to work quickly to make sure there was no downtime in smelting reduction lines.

What did we do?

The WorleyParsons project team worked with BSL to source a cost effective solution and to make sure there was no loss in productivity. This meant anodes needed to be sourced and baked externally due to the problem with the carbon bake.

The project team managed the transport of anodes on trucks to Tomago Aluminium Smelter and via shipping freight to New Zealand Aluminium Smelters Limited for baking. This process involved many trucks and ships, with the anodes needing to be packed on and off transport in a timely and safe manner to make sure there was no reduction in production rates.

With all available unbaked anodes being shipped to Tomago and New Zealand for baking there was still a shortfall.

The resolve for the shortfall was to source baked anodes globally, this required the engagement of a brokerage company in Zurich specialising in the supply of anodes.

The project team prepared the technical documentation required by the brokerage company. The company chose to manufacture the anodes is China; the associated shipping logistics and DAFF/Australian Customs requirements were a considerable challenge to the team. Disruption to the supply of anodes was averted.

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Sharing Success External Anode Supply

What was the outcome and how much value did we add?

The WorleyParsons Improve team and BSL integrated site workforce were able to combine the national and international resources of both organisations to source and bake anodes externally and manage the transport of them around the world whilst maintaining production timelines.

Significant money was saved by BSL, due to operations not being effected throughout this process.

Who was involved?

John Hughes (Project Leader), Paul Pacaud (Sponsor/ Champion) and BSL team members.

What did we learn?

This initiative shows the commitment by the project team in the BSL Alliance to provide cost savings for the customer by leveraging off existing expertise in sourcing parts from around the globe and managing their timely arrival.

Anodes trucked to Tomago, baked anodes being lifted on to ship from NZ Baked anodes being prepared for shipment in NZ Main carbon anode image courtesy of www.ecplaza.net

Sharing Success

45

Rodded Anodes Casting Carousel Replacement Customer

Tomago Aluminium Company

Contract Name Location

Tomago Aluminium WorleyParsons Alliance Tomago, New South Wales

What was the need?

Who was involved?

The previous carousel in the Rodded Anodes Department at Tomago Aluminium had extensive structural fatigue from 17 years of use, and the slew ring bearing was inaccessible for inspection or replacement because of structural reinforcements that were added to strengthen the carousel structure.

George Sarvay and John Shaw worked closely with Lewis Australia, (RIG Installations, and Rodded Anodes operations and maintenance departments), Terry Cox, Charlie Sanders, Lee Pigott, Satish Pandya and Aaron Arthur (Alliance team members).

There was no redundant process that could be used to produce rodded anodes during any site works to remedy the problem. A constraint on the project team was to develop a solution that could be implemented in a 30 hour installation shutdown which is the maximum downtime the department could tolerate.

What did we do?

The implemented solution was to replace the carousel like for like since the area could not be reconfigured to accommodate any other solution.

What was the outcome and how much value did we add?

Lewis Australia was contracted to design and supply the new carousel. George Sarvay (Project Engineer) worked closely with Lewis Australia, Rodded Anodes operations and maintenance departments to design a fit for purpose solution that could be installed in the limited installation window. RIG Installations was the lead contractor to remove the existing carousel and install the new carousel. John Shaw (Construction Coordinator) worked closely with RIG Installations to develop a safe work methodology for the shutdown works.

There were approximately 40 personnel involved in the installation, and the shutdown objectives were achieved in 30 hours without any incident or injury. Also, there was minimal disruption to the supply of rodded anodes to the potlines.

Tomago Aluminiumâ&#x20AC;&#x2122;s senior management recognised the outstanding performance of the project team by awarding them a monthly Silver Ingot award for business improvement; the team also won the Gold Ingot award for the best annual team performance at Tomago Aluminium.

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Sharing Success Rodded Anodes Casting Carousel Replacement

What did we learn?

Extensive pre-planning and obtaining buy-in from all stakeholders in the project was paramount. This required good communication with the project team through weekly meetings to monitor the progress of safely planning the execution works, rodded anode stock inventories and setup requirements on the day of the shutdown. Having a truly integrated project team was fundamental to the outcome of the project.

Safety First With WorleyParsons Customer

Santos, Penrice Soda and the South Australian Government

Contract Name Location

Work Safely Centres Adelaide, Gladstone, Perth and Auckland

What was the need?

A Health Safety and Environment (HSE) paper presented at a customer-led TW Leading Practice Forum, (a forum promoting best practice in the workplace), discussed the benefits of opening Work Safely Centres (WSC) throughout Australia and New Zealand. The WSC would be positioned to promote effective safety training through step-by-step and hands-on safety training demonstrations for participants. The aim of the WSC is to encourage a culture of safety first and zero harm through interactive learning in workplaces.

The success of the WSC has seen the construction of a number of WSCs throughout ANZ, with the Civil Contactors Federation of South Australia also commissioning 26 plant simulators at the WSC in Adelaide, making it the largest simulator training environment in Australasia.

There are plans to establish new WSCs in other locations in Australia and throughout the globe including the Middle East and South Africa.

The value of the WSCs is immeasurable; a dollar value cannot be placed on safety and zero harm in the workplace.

What did we do?

Who was involved?

A project team was established to design and construct the first WSC in Perth, WA. TW listened to a number of customers and leveraged off their skills and expertise to help make sure it was world class and in line with industry best practice.

For the Adelaide WSC: Philip Baker (Facilitator), Paul Brewer (Location Manager), Daniel Raschella, (Business Development Manager) and Eamon Miramadi (Site Project Manager).

The fourth WSC was formally opened in Adelaide recently by the Australian Prime Minister, The Hon Julia Gillard, along with the Civil Contactors Federationâ&#x20AC;&#x2122;s Centre of Excellence. Also present at the opening was Senator The Hon Chris Evans, Federal Minister for Tertiary Education and Skills, along with company representatives from several industries, including many WorleyParsons and TW customers.

What did we learn?

In response to the positive feedback from the first WSC in Perth, the TW project team assisted with the design and construction of additional WSCs in Gladstone, Adelaide and Taranaki, New Zealand.

The WSCs are world class initiatives, which stemmed from high-level discussions at the TW Leading Practice Forum.

The importance and value of having WSCs and promoting workplace safety and zero harm was recognised by multiple senior figures and organisations who volunteered to support the ongoing success of the WSC. The WSCs go hand-in-hand with WorleyParsons commitment of being a global leader in safety.

The TW team have worked collaboratively to drive WSC, which promote a positive environment of safety first and zero harm.

What was the outcome and how much value did we add?

The WSC are tailored for oil and gas, civil construction and related industries and provide hands-on and interactive nationally accredited training courses for employees at all levels. The WSC immerse participants in workplace environments similar to those experienced in their related industry and are designed to replicate risk components of work sites and provide situations where people can be taught to act safely.

Safety Centre Demonstration Safety First With WorleyParsons Sharing Success

47

Fire Water Pumphouse Initiative Customer

Boyne Smelters Limited

Contract Name Location

BSL Alliance Boyne Island, near Gladstone, Queensland

What was the need?

WorleyParsons was contracted at the Boyne Smelter Limited (BSL) plant to upgrade the fire water system at Boyne Island.

The existing fire water pumphouse system needed to be upgraded as part of maintenance schedules for essential services and other safety measures.

What did we do?

The WorleyParsons project team conducted a risk assessment to identify and review any risks before undertaking the upgrade to the fire water system.

In the initial electrical design, and as part of the scope of works for the upgrade, there was a requirement for the installation of a 180 metres of 95mm2 cable. Rather than purchase 180 metres of new 95mm2 cable, the project team decided to re-use the existing electric fire pump cable for the new raw water booster pump on the fire water pumphouse.

Fire Water pump

48

Sharing Success Fire Water Pumphouse Initiative

What was the outcome and how much value did we add?

The project team at WorleyParsons worked collaboratively and upgraded the fire water system in the agreed timeframe.

During the upgrade process, the team took the initiative of re-using an existing electric fire pump cable, which provided a cost saving of $40,000 to BSL.

Who was involved?

Syed Quadri (Sponsor/Champion) and BSL Alliance team members.

What did we learn?

This initiative is an excellent example of thinking outside the box to achieve a cost effective solution for the customer.

â&#x20AC;&#x153;By listening to our customers we can identify and address their needs.â&#x20AC;?

Graeme Henderson - Managing Director Improve Program Development

Sharing Success

49

2012 Grinding and Rail Excellence Award Winner Customer

OneSteel

Contract Name Location

WorleyParsons OneSteel Market Mills and Consumables Alliance Moly-Cop Wire Rope Site

What was the need?

At the Moly-Cop Wire Rope site an electrical upgrade of machinery was required to prevent on-site hazards and to maintain a safe working environment.

The project team was required to design and implement workable processes and procedures to make sure work was conducted safely and effectively.

What did we do?

The Alliance worked with maintenance and operational teams to guard, update and replace out-of-date electrical hardware on significant pieces of machinery at the Moly-Cop Wire Rope site. Work included the guarding of CS30/40 nose cones, the winding heads, the mallifer and the plastication plant. Planning for the other machines is underway.

The project team included the installation of closed circuit cameras with the guarding to eliminate the need for the operators to be in close proximity to rotating machinery, which can be a hazard.

The project team also developed a common template for the guarding and electrical upgrade initiatives resulting in standardisation across the Wire Rope site.

Steve Murray (left) and Michael Byrne (right) receiving the award

50

Sharing Success 2012 Grinding and Rail Excellence Award Winner

What was the outcome and how much value did we add?

The workable solutions significantly reduce the hazards associated with a number of key machines.

The results went beyond the expectations of the customer and the WorleyParsons electrical team received a Grinding and Rail Excellence Award, which recognised valuable contributions from employees and contractors. The WorleyParsons Electrical team was awarded for their efforts.

Who was involved?

Steve Murray (Project Leader), the Alliance Electrical team and Moly-Copâ&#x20AC;&#x2122;s maintenance and operational teams.

What did we learn?

The collaborative nature of this work helped to promote positive results. Work continues to be channelled through the Alliance, based on the quality results they are delivering.

Bridge Support Structure Installation Customer

Confidential

Contract Name Location

Confidential Perth, Western Australia

What was the need?

As part of the preparations for linking two platforms on an offshore facility, WorleyParsons was engaged by the customer to complete a series of work on installation of the new bridges. During the installation of the support structure, this project required staff to work overboard, which involved a number of risks including the chance of plunging into the ocean. Due to these risks, standby vessels needed to be available for workers during these times.

What did we do?

During the installation of the support structure, the project team suggested an approach that would allow personnel to work safely overboard using secondary fall protection when no standby vessel was available. The project team promoted the use of fall protection netting, which could have an additional benefit during the building of long term scaffolding. This would allow for de-boarding and re-boarding as part of cyclone preparation without the requirement of a critical standby vessel, which often is used for material removal or stores during cyclone readiness periods.

The introduction of secondary fall protection, by using netting, allowed the project teams to work overboard unhindered during times when no standby vessel was available due to weather impacts.

What was the outcome and how much value did we add?

The netting installation and removal was carried out safely without any incidents or delay in the quoted timeframes. This initiative demonstrates that complex and/or safety critical works can be executed in the knowledge that there is no risk of a fall into the sea.

Application of this additional layer of fall protection netting reduced the need for an expensive standby vessel, thus improving planned working durations directly affected by sea states, inclement weather and effectively using daylight working hours.

This initiative provided significant cost savings for the customer of $1.5 million, which includes the cost saving of not using a stand-by vessel.

Who was involved?

This initiative was driven through an integrated approach using the expertise of the project team offshore and onshore.

What did we learn?

The team identified a safety need and worked with the customer to deliver a cost effective solution. This project is a good example of teams working effectively across a project to deliver substantial benefits that are cost effective and ongoing to the customer.

Platform Maintenance Bridge Support Structure Installation Sharing Success

51

52

Sharing Success

‘Hit and Run’ Piping Initiative Customer

Confidential

Contract Name Location

Confidential Victoria

What was the need?

The current climate brings with it new challenges. With customers continuing to request assistance in the review of multiple options and with decreasing budgets, it became a challenge for the Footscray Piping Team working with the customer to demonstrate the value of their estimates to complete work. In the face of this challenge the ‘Hit and Run’ approach was born.

What did we do?

The Footscray Piping Team, led by David Sinclair, developed a new initiative named ‘Hit and Run’ for use in scoping phase projects. Hit and Run attempts to condense all scoping work for the piping discipline into one to two weeks. A key aspect of Hit and Run is a multiple discipline site visit where customers and construction workers participate.

Deliverables for scoping have been refined to those needed to facilitate the generation of a +/- 30% estimate and to those required to capture key decisions made during the project phase. In this regard, piping engineering/design deliverables have been reduced to: • Marked up photographs showing piping layout • A basic piping sketch highlighting run lengths • A bullet point style Piping Report summarising key decisions and reviews undertaken

What was the outcome and how much value did we add?

Implementation of the above approach has allowed scoping estimates to be reduced to approximately 60 hours for piping design and 40 hours for piping engineering. In this regard, the Hit and Run approach has proven itself very successful on projects for the customer.

The project leader David Sinclair received a staff recognition award for his work on this initiative.

Who was involved?

David Sinclair (Project Leader) and the Footscray piping team.

What did we learn?

The Hit and Run piping initiative is an excellent example of a project team thinking outside of the box to design and implement a customer-focused solution, which aims to promote development and eliminate rework. The success of this initiative demonstrates the effectiveness of working collaboratively as a team and the benefits this has on the success of a project.

Through the Hit and Run initiative, the Footscray Piping Team developed a process, which facilitates rapid development and review of project options and eliminates rework.

‘Hit and Run’ Piping Initiative Sharing Success

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Quick Response Team Start Up of Yarwun 2 Customer

Rio Tinto Alcan Yarwun

Contract Name Location

RTA Yarwun ESP Agreement Yarwun Alumina Refinery – Gladstone Queensland

What was the need?

Who was involved?

At the Yarwun Alumina Refinery in Gladstone Queensland, a refinery upgrade was required to increase plant capacity from 1.4M t/yr to 3.2M t/yr. This involved instrument position changes through to major structural modifications and piping changes.

Andrew Potgieter, Prakash Tiwari, Lincoln Thorley, Paul McParland (Project Leaders), Brian Blackmore, Shane Duggan, Richard Sutton, Rowan Murray, Neil Johannesen (Design Engineers and Draftsman), Jason Vacher, Peter Kammholz and David Queitzsch (Construction Supervisors), Paul Rooney, Tom King, Herman van Rensburg, Lawrence Smit (RTAY – Area Capital Engineers), Kym Foura (RTAY Project Support) and Monadelphous, MIE Electrical, Xtreme, Astec, UGL and Veolia (RTAY Construction Contractors).

To allow the safe and timely start-up of the Yarwun 2 Alumina Refinery, a Quick Response Team (QRT) was set up within the engineering team to be able to respond to ‘must happen now’ projects.

What did we do?

WorleyParsons provided key project, engineering and construction support personnel to the QRT team. The team had to execute projects in minimal time periods to allow the gradual and continuous plant pre-commissioning and commissioning, while the existing plant remained on-line.

For this initiative, the normal five phase project flow chart was abandoned. Key elements of project definition, design, risk assessment, approval and constructability were not compromised with any of the work.

The work commenced in October 2011 and was concluded when Rio Tinto Alcan Yarwun 2 (RTAY 2) came online in July 2012. Work continues on request from operations as required.

What was the outcome and how much value did we add?

In the tight timeframes imposed on the team (sometimes the next day on some jobs), the work was undertaken in a safe manner.

This initiative delivered time and cost savings to the customer. The QRT will deliver ongoing benefits at the Yarwun 2 Alumina Refinery.

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Sharing Success Quick Response Team - Start Up of Yarwun 2

What did we learn?

This initiative demonstrates the effective working relationship between WorleyParsons and Rio Tinto Alcan Yarwun with them working as a team between multiple companies.

Sharing Success Annual Edition, 2012