HQ Magazine_Q1 FY2014

HQmagazine Hydrocarbons Quarterly

Content Managing Editor Heather Harrington

p.12

Production Manager, Editor & Designer

Improve: Delivering innovation to operations and maintenance projects around the globe

Jessica Taylor

Produced by WorleyParsons Marketing & Research Group

Contact www.worleyparsons.com hqmagazine@worleyparsons.com

Issue 7 Q1, FY2014

On the cover: WorleyParsonsCord Blackfalds Module Yard Alberta, Canada Š WorleyParsons 2012

WorleyParsons' Improve business line is experiencing continued growth in delivering to hydrocarbons developments. Refer to page 12 to learn how this initiative has been implemented to effectively manage portfolios of projects and maximize capital efficiency.

In this issue: p.4 Annual Results

orleyParsons' CEO, Andrew Wood, W

p.18 Subsea Processing

p.20 Building our Relationship with BP Project delivery through long-

breaks down the company's FY2013 Hydrocarbons results

p.6 Focus on Zero Harm p.7 Looking Ahead

WorleyParsons demonstrates the future of engineering delivery

p.8 Global Awards

HQmagazine Hydrocarbons Quarterly

p.16 Regional Report An look at our operations in

the Gulf of Mexico

p.17 INPEX Ichthys

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HQ Magazine Content

A report on this integrity and maintenance project in the waters off the Northwest Coast of Australia

A global technology initiative for INTECSEA and WorleyParsons

term master service agreements

p.21 Upcoming Events

Want to catch up with us?

Check out where we'll be in 2013

p.22 Office Intel

See what’s happening in our

locations around the world

p.23 Recent Appointments

Message from Brian Evans The past year has seen consistent and encouraging growth for our Hydrocarbons business...

Welcome to the first edition of HQ Magazine in FY2014! The past year has seen consistent and encouraging growth for our Hydrocarbons business, as evidenced in the release of WorleyParsons' full year results to the market. We ended the fiscal year in a solid position, with Hydrocarbons showcasing record aggregate revenue and EBIT. On page 4 of this issue, CEO Andrew Wood provides a detailed insight into WorleyParsons' FY2013 Hydrocarbons performance and also comments on the sector's outlook for FY2014.

Central to our aim of providing integrated services to our customers is our Improve business, which delivers long-term, performancebased asset services. We expect an increased demand for these services over the coming years, driven by a global trend of aging assets, greater regulatory requirements, changing feedstocks, and new greenfield projects coming on line. As such, this issue is focused on the value that this offering delivers and the importance WorleyParsons places on developing and maintaining strong relationships with our customers. Additionally, while we are engaged in hydrocarbons activity around the world, this issue also includes a focus on our work in the Gulf of Mexico region, an area that has experienced tremendous growth and shows great promise.

The extraordinary work executed by our people continues to result in incredible success for WorleyParsons, our customers and their projects.

Please note where we've demonstrated excellence in safety (page 6), project delivery (page 17) and technological innovation (page 18); how we're a part of revolutionizing engineering delivery (page 7); and the good we're doing in the communities in which we work (page 22).

I hope you enjoy this issue,

Brian Evans Managing Director, Hydrocarbons

HQ Magazine Message from Brian Evans 3 Brian Evans foreword HQ Magazine

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Annual Results WorleyParsons' FY2013 Hydrocarbons performance

"The 2013 financial year saw challenging conditions for our industry in a number of our key markets.

However, the geographic and sector diversification of WorleyParsons’ operations enabled us to largely offset these challenges and allowed us to deliver what we believe is a solid financial result." —Andrew Wood, CEO

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HQ Magazine Annual Results

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WorleyParsons seeks to put our customers at the center of everything we do. We continue to develop our business model to support an efficient yet flexible Group structure to meet the changing needs of our customers.

This has resulted in a reduction in overhead costs for us, positively impacting our competitiveness in the market.

In FY2013, 23 significant Hydrocarbons projects were awarded to WorleyParsons by customers including Chevron, Shell, Suncor Energy, Total, Samsung Heavy Industries, CNOOC, Talisman, Husky, Maersk, Saudi Arabian Oil Company and Addax Petroleum.

WorleyParsons encourages the development of our people’s unique capabilities by providing a culture that empowers our people and supports an entrepreneurial spirit. In delivering projects and services in FY2013, our people have shown an exceptional ability to grow, adapt and respond to the changing needs of our customers and the dynamic markets in which we work. WorleyParsons' success comes as a direct result of what our people have been able to achieve through their technical expertise, focus on customer relationships and passion for collaboration.

Strategic Growth

Hydrocarbons Business Summary

Continued demand growth for oil and gas, together with robust commodity prices, led to an increased level of capital expenditure in upstream developments. New greenfield assets coming on line led to increased spend on Improve asset management and enhancement programs. The lower cost of natural gas in the US drove development of the downstream market, with a focus on petrochemicals and other gas monetization opportunities. Unconventional oil and gas development has escalated, with program management and project delivery for developments in the US, Canada, Australia and the Middle East being undertaken during the period.

Performance Overview

Our Hydrocarbons sector has continued to grow both revenue and EBIT, with good results coming from Australia, the US gas and downstream market and the Improve market in Canada. With reported aggregated revenue of AU$5,344 million, an increase of seven percent from the previous corresponding period, the sector's contribution to the Group’s aggregated revenue was 70 percent.

We are constantly challenging ourselves to develop new capabilities that are aligned with our areas of traditional activity. Our strategy includes developing our skill-set and increasing our geographic footprint across our customer sectors through organic growth as well as value-adding acquisitions such as that realized in FY2013 with Bergen Group Rosenberg AS—now Rosenberg WorleyParsons.

Acquired with effect from January 1, 2013, Rosenberg provides fully-integrated engineering, fabrication and construction solutions to the Norwegian offshore oil and gas sector. This complements and extends WorleyParsons’ current Hydrocarbons services offering, which is globally supported by INTECSEA, DeltaAfrik and WorleyParsonsCord, among others. We will continue to seek acquisitions that enhance the offering we deliver to our customers worldwide.

Hydrocarbons Outlook

We are encouraged by the growth in the US gas, global downstream and petrochemicals markets, and opportunities in Norway and in the developing world.

Our continued global diversification, together with ongoing strengthening of key customer relationships and strong financial capacity gives us confidence that—despite uncertainties in world markets—the Hydrocarbons sector will continue to grow in the medium- and long-term and realize improved earnings in FY2014.

For more on WorleyParsons' annual results, visit: http://annualreport2013.worleyparsons.com/

HQ Magazine Annual Results 5

Focus on Zero Harm Focusing on safety throughout our global operations Process safety course successfully delivered for Repsol in Spain In continuation of the relationship established with Repsol, WorleyParsons' Madrid office delivered a process safety course to Libyan Akakus Oil Operations personnel.

The course was imparted in April to an audience of 14 Libyan personnel ranging from operators to management in an effort to raise awareness of safety and risk aspects related to oil and gas operations, with the aim of enhancing the overall safety culture of the Akakus Oil workforce. The course was very well received, with the Repsol coordinator stating interest in attending an extended version of the course and running courses on other subjects.

Starting with basic concepts and then providing a broad overview of all key aspects of process safety, this customized course emphasized the importance of process safety via interactive practical case studies and real scenarios. The knowledge gained from this course will enhance the participants' understanding of process safety and empower them to lead others towards a strengthened safety culture.

WorleyParsons brought the benefits of our experience from our international project delivery capability and our network of projects to this course, which has further enabled us to work closely with Repsol to deliver value-adding services and solutions.

“HSE achievement is a reflection of WorleyParsons’ corporate policy that stands for zero harm to people, assets and the environment. These milestones and awards achieved over the last few months reflect safety awareness and ensure that a culture of safety best practice is nurtured at all levels within the company and its contractors.”

—Paul Cook, Group HSE Director

For more information on WorleyParsons’ commitment to zero harm, visit http://www.worleyparsons.com/AboutUs/OneWay/Pages/default.aspx

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HQ Magazine Focus on Zero Harm

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Looking Ahead WorleyParsons demonstrates the future of engineering delivery Our industry’s move away from traditional paper design drawings as deliverables and toward a more data-centric approach has been underway for several years. As this trend gathers more momentum, WorleyParsons is at the forefront of many new developments.

WorleyParsons was recently selected by an international owner-operator to provide consultancy services and system configuration to help develop a data-centric engineering environment. This is an environment of compatible engineering design systems digitally exchanging technical information via a centralized data warehouse. In this case, we are working as a team with the software suppliers and the customer in a three-way collaboration to ensure the optimum systems configuration is achieved.

Our Integrated Solutions Manager in the UK, Lewis Quinn, recently led a live demonstration where our team of engineering and design system experts developed and shared process and instrument data within a common cloudbased environment. The audience on the day consisted of executives and management from the owner-operator and the EPC community.

Using local and global technical expertise based in London, Pretoria and Houston, WorleyParsons' knowledge in this area of technology is creating new stand-alone business opportunities, as well as delivering added value to our customers across a variety of projects. This new method of working— an industry step-change—has a potentially huge effect on how engineering will be performed in the future, and has the possibility to deliver cost benefits in terms of workflow efficiency (challenging the need for traditional deliverables), repeatability and scalability (design one, build many), quality improvements and data handover.

HQ Magazine Global awards 7

Global Awards Major Hydrocarbons contracts awarded this quarter

Across the World

Africa

WorleyParsons awarded two BP framework agreements

Contract with Samsung for FPSO in Nigeria

WorleyParsons is pleased to announce that BP Remediation Management (BP) has awarded two significant framework agreements to WorleyParsons for the provision of consulting services across BP’s operating business lines outside of North America. The work will be primarily associated with supporting BP projects over a three-year term across upstream, refining and marketing, alternative energy, shipping and remediation management businesses.

The BP Lighthouse contract was awarded to WorleyParsons and includes business resilience and spill response planning. The BP Atlas contract was awarded to WorleyParsons and our joint venture partner, Golder Associates, and encompasses remediation engineering, decommissioning, waste management and environmental services.

In his comments regarding the award of these framework agreements, WorleyParsons’ Chief Executive Officer, Andrew Wood, said, “These contract awards with BP represent a significant development in the growth of our restoration business.”

For more on these framework agreements and our relationship with BP, refer to page 20 of this issue.

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HQ Magazine Global Awards

Samsung Heavy Industries (SHI) has awarded WorleyParsons a contract for the detailed design and engineering for the topsides process modules of the floating production, storage and offloading (FPSO) vessel for a deepwater oil field located offshore Nigeria.

This major project will be executed under the Nigerian local content law, demonstrating WorleyParsons’ ability to support efforts to engage and invest in local capacity building and development as a key differentiator in the exciting Nigerian and West African market. The contract will be executed largely in Lagos, Nigeria in conjunction with a consortium of Nigerian engineering companies that include NETCO, DeltaAfrik and IESL, as approved by the Nigerian National Petroleum Company, with technical support from WorleyParsons in Melbourne.

The scope of work includes the modularized topside's crude oil processing facilities, natural gas compression facilities, power generation, compression, metering systems, flare systems and various other utilities in support of the overall operation of the FPSO. The topside's weight is 34,000 tonnes.

Commenting on the contract award, WorleyParsons’ Chief Executive Officer, Andrew Wood, stated: “This important award builds on the successful relationship we have with SHI and represents a strong development of our ability to locally support the offshore oil and gas business in West Africa.”

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Addax Petroleum Global Alliance Agreement Addax Petroleum has awarded WorleyParsons’ Nigerian joint venture company, DeltaAfrik Engineering, a three-year contract with an option to extend for an additional two years to provide engineering and project services for capital projects and operating assets in parts of West Africa: Nigeria, Cameroon and Gabon. The contract anticipates that services will be provided from DeltaAfrik's offices in Lagos and WorleyParsons’ offices in London, Houston and Beijing.

The facilities to be supported represent a wide range of asset types including deepwater, shallow water and onshore developments for both producing and planned new developments.

WorleyParsons’ Chief Executive Officer, Andrew Wood, said, “The Global Alliance represents an important opportunity for enhanced, valueadded support to Addax Petroleum’s expanding Gulf of Guinea assets through a portfolio approach across the entire asset lifecycle.”

Australia Chevron Australia Brownfield Engineering Services Contract WorleyParsons is pleased to announce it has been selected by Chevron Australia Pty Ltd to provide Brownfield Engineering Services for the operational phase of the company’s West Australian assets.

services, on-site engineering support, turnaround engineering support services and quality assurance services including design verification and inspection.

WorleyParsons Chief Executive Officer, Andrew Wood, said, “We are delighted to extend our long association with Chevron Australia to include brownfield engineering services. With our experience in Western Australia and global success managing long-term Improve relationship contracts, we are positioned to safely deliver value-added services.”

Europe Rosenberg WorleyParsons delivering to the Knarr Development Rosenberg WorleyParsons AS has been awarded a contract by Subsea 7 for fabrication of the 12 tie-in spools as part of the subsea scope of BG’s development of the Knarr field.

This is the first time Rosenberg WorleyParsons will be executing work for a BG-operated development on the Norwegian Continental Shelf. Work has commenced and will be completed in early 2014.

The Knarr field (previously named Jordbær) is located in the North Tampen region of the Norwegian sector of the Northern North Sea with Knarr Central and Knarr West initially developed.

This master services agreement is for an initial five-year term, with extension options under the arrangement.

Under the agreement, WorleyParsons may provide an extensive range of engineering services through its Improve business stream, including: pre-commissioning and commissioning engineering

HQ Magazine Global Awards 9

Middle East Saudi Aramco contract extension WorleyParsons is pleased to announce that Saudi Aramco has extended its current Maintain Potential Program (MPP) contract for an additional two years.

WorleyParsons' Arabia location has held this contract for the past 11 years and this unprecedented fourth extension is testament to the excellence and diligence of our MPP team.

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

WorleyParsons’ Chief Executive Officer commented on the continuation of WorleyParsons' long-standing relationship with Saudi Aramco and the renewal of this contract, stating, "The continued strong performance of our MPP team to deliver projects in a complex and challenging environment should be acknowledged as a major part of our success in achieving this extension.”

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HQ Magazine Global Awards

Maersk Oil Qatar General Design Contract Award Maersk Oil Qatar A/S (Maersk Oil) has awarded WorleyParsons a four-year General Design Contract to conduct engineering design modifications and material definition for works associated with the Al Shaheen offshore oil production facilities operated by Maersk Oil in Qatar. The Al Shaheen field is located in Block 5 offshore Qatar and is operated under a production sharing agreement on behalf of Qatar Petroleum.

WorleyParsons will provide brownfield design engineering services ranging from front-end engineering to detailed design to yield enhanced operation, production, safety and efficiency improvements for the existing facilities; and if so defined by Maersk Oil, design services for additional production and/or operational facilities.

Under the General Design Contract, WorleyParsons will perform a significant volume of professional services man-hours.

The contract also provides a framework for the development of a mutually agreed upon set of key performance indicators, with an incentive scheme designed to promote and reward efficient performance and continuous improvement.

Commenting, WorleyParsons’ Chief Executive Officer, Andrew Wood, stated, “We are delighted Maersk Oil has selected WorleyParsons in Qatar to be its partner for this program. The scope of the services to be provided showcases the capability we have in our Improve offering to assist our customers in managing their assets.”

>> Go to Contents For more information on WorleyParsons contract awards, visit www.worleyparsons.com/news

United States WorleyParsons to engineer Chevron's Buckskin-Moccasin production facility WorleyParsons has been selected by Chevron U.S.A. Inc. (Chevron) to provide engineering services for the Buckskin and Moccasin oil and gas production facility to be located in the Lower Tertiary Trend of the outer Continental Shelf of the Gulf of Mexico. The Buckskin prospect is owned by Chevron, Maersk Oil, Repsol E&P USA Inc. and Samson Offshore LLC, while the Moccasin prospect is owned in part by Chevron and Samson.

Under the contract WorleyParsons, together with its subsea division INTECSEA, will execute the preliminary design phase for the deepwater subsea architecture, riser interface and topside facility design for the oil and gas production semisubmersible. WorleyParsons will also manage a hull subcontractor to execute the hull preliminary design.

The work will be performed at the WorleyParsons and INTECSEA offices in Houston.

Commenting on the award, WorleyParsons' Chief Executive Officer, Andrew Wood, said, “We are extremely pleased that Chevron has selected WorleyParsons and INTECSEA to deliver the preliminary design phase of the Buckskin and Moccasin project. This is an excellent example of the integrated offshore project delivery capabilities of WorleyParsons and INTECSEA. Chevron is one of our top global customers and we look forward to building upon our strong working relationship.”

Sasol Integrated Gas-to-Liquid (GTL) and Ethane Cracker Complex Contract WorleyParsons has been awarded a contract

by Sasol North America, Inc. (Sasol) for an integrated GTL and ethane cracker complex.

The contract is for WorleyParsons to provide Integrated Program Management Team (IPMT) services for the front-end engineering and design phase, with the intent to subsequently provide IPMT services to the engineering, procurement and construction phases of the project.

Sasol’s integrated complex will comprise of a worldscale ethane cracker that will produce 1.5 mtpa of ethylene with downstream derivative plants and a 96,000 bbl/d GTL facility. It will produce high quality transportation fuel, including GTL diesel and other value-adding chemical products. It will be located adjacent to Sasol’s existing chemical complex in southwest Louisiana. Current project costs are estimated between US$16 to US$21 billion.

Chief Executive Officer, Andrew Wood, commented on WorleyParsons' selection by Sasol to help them leverage their gas-to-liquids experience and technology, saying, "We look forward to bringing our mega-project expertise and providing world-class project delivery, systems and tools to deliver value to Sasol.”

Celanese Methanol EPCM project award WorleyParsons has recently signed a contract for engineering, procurement and construction management with Celanese Corporation for the development of their Methanol project in Clear Lake, Texas.

The methanol unit will utilize abundant natural gas in the U.S. Gulf Coast region as a feedstock and will be located at Celanese's existing Clear Lake facility.

Production is scheduled to commence in mid-2015.

HQ Magazine Global Awards 11

Improve Adding Value through Long-term Partnerships

WorleyParsons' Improve business line operates across all sectors of the hydrocarbons industry, with support tailored to the customer, asset and location.

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Focused on adding value to assets through developing and maintaining long-term relationships and alliance agreements, Improve is built upon the idea that in order to maximize value, we must align with our customers in every way possible.

From shared cultures, systems, tools and even integrated, co-located project teams, this alignment better positions us to provide services across the fulllife of an asset’s development and results in added value to the customer.

Stuart Elliot, WorleyParsons’ director of portfolio value leadership often remarks, "Improve the asset; improve how the asset gets improved.” In other words, the goal is finding more efficient ways of strengthening the facilities, processes and systems that underpin our customers’ businesses.

Improve has experienced year-on-year growth because of its ability to work across all of WorleyParsons' energy sectors—Hydrocarbons; Minerals, Metals and Chemicals; and Infrastructure—without compromising the standardized processes and tools that have made it valuable. The work methods and systems are consistently and systematically implemented no matter where work is being executed, whether in London, Bahrain, Perth or Houston. Improve work is executed by approximately 40 percent of WorleyParsons’ global personnel and draws on the experience and best practices of our more than 290 contracts of this kind to bring customers new ways of thinking and better ways of doing business for developments of all types and sizes.

Number of Contracts

300

WorleyParsons' Improve Contract Growth

250 200 150 100 50 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 Year

HQ Magazine Improve 13

How Improve Works

In Improve, WorleyParsons works with our customers to optimize the performance of ongoing operations.

This business line has developed simplified, consistent work processes and systems for brownfield project portfolios that ensure all work is executed safely and consistently. The Improve culture is focused on building long-term working relationships in an atmosphere of mutual respect and integrity. Success here requires an open, communicative culture and the ability to meet customer needs on a continuallyimproving basis. This culture is supported by a unique suit of tools including the WorleyParsons Improve Operating Platform (IOP) and portfolio management approach, which bring together systems and processes specifically designed for managing portfolios of projects in brownfield operations. These proven systems simplify very complex hydrocarbons business issues, enabling us to consistently deliver the right support for each project— no matter where it is located— by combining local resources with the global capability and support of the greater WorleyParsons organization.

Leveraging Best Practices

The value delivered to a contract is defined by each customer. Our culture, tools and systems form the basis for our differentiated value proposition, but Improve adds value because it aligns those systems and processes into the way we work with all customers and supports the shared goal of profitable sustainability—long-term sustainable profits for the entire business. It starts with listening to customers to create tailored solutions that are matched to their priorities over time and across operations. Value is created through integrated teams and is sustained in long-term, value partnerships that are built on a shared culture of trust and common goals.

"The way forward is through deeper, longer-term relationships with key suppliers such as WorleyParsons."

—Neil Shaw, Senior Vice President, Global Projects, BP

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HQ Magazine Improve

Improve is about innovation for measurable improvement, as seen with the I3 (I Cubed) program. Since the program's introduction in 1995 through CoSyn— an alliance between Syncrude and WorleyParsons spanning more than 20 years—CoSyn employees have contributed more than 4,000 ideas, innovations and improvements. Those subsequently implemented have delivered more than US$700 million in documented, customer-approved, project-related savings.

In an Improve alliance with one of our Canadian shale gas customers, we applied lean principles to the operations. This streamlined the portfolio management, engineering, procurement and construction processes to deliver a more efficient well-site development process resulting in significant cost savings to our customer.

Also, in Saudi Arabia, WorleyParsons created the first incountry ‘designer’ competency training program for local employees. The program was created to support Saudi Aramco’s Maintain Potential Program, which provided WorleyParsons with the opportunity to combine Saudi Aramco’s processes and standards with our extensive global offshore experience. Localization of the workforce grew from 15 percent to more than 30 percent over the first term of the contract. Saudi Aramco has recognized the program as ‘best-in-class’ and it is an example for other contractors as evidenced by its recently announced extension as seen on page 10 of this issue.

Responding to Challenges

Operating companies face ongoing challenges, particularly regarding safety. As economic conditions and changing legislation place greater pressure on businesses to extend the operational life of aging infrastructure, the introduction of new, and more complex technology demands more effective measures to manage increased health, safety and environmental risk.

WorleyParsons' OneWayTM framework gives us the flexibility to safely support the operations of our customers in project execution—from engineering and design through to site construction and commissioning—and add value to our combined visions for health, safety and the environment.

We proactively work to align our expectations and behaviors to those of our customers to achieve zero harm in our dedication to continuous improvement.

These expectations are reflected in OneWay™ and directly linked to our global systems and procedures.

>> Go to Contents The critical shortage of experienced and qualified people to manage, operate and maintain existing assets is of growing concern as more and more engineers reach retirement. Recruiting, developing and retaining exceptional teams of people and deploying them in cost-effective ways is therefore essential. We employ experienced people from a wide variety of backgrounds using a proven assessment process to select those that flourish in the Improve culture: people motivated to work with customers in stable, long-term relationships, adding value through continuous improvement. We also focus on developing the professionals on our integrated teams to ensure our people are prepared to meet the changing needs of the industry and our customers.

High-value engineering (HVE) is so vital that we embed it in much of the work we do. The WorleyParsons Local/ global business model combines fully-integrated global systems with the flexibility and customer focus of local delivery. Our more than 40,000 personnel utilize standardized tools, systems and work processes that bring consistency to the way we work across our many different offices and with our customers, and can be accessed through workshare and via our global centers of excellence. Through this, people, technology, hardware, materials and the latest innovations are available to all customers at the lowest possible cost.

Sharing Success

Success is achieved when the right people are brought together with the most effective processes in a partnership that delivers at the lowest possible cost and to the highest quality. We aim to solve industry and customer challenges by encouraging innovation within WorleyParsons and then sharing what we've learned to increase the value realized by our customers. In doing this, we have developed 'Future Directions Forums' that are regularly held in different locations around the world in conjunction with our customers. Launched in 2010, these forums offer unique insights, techniques, solutions and innovations that drive superior performance within projects and core businesses. While WorleyParsons facilitates and helps develop these forums, our customers establish the themes, pick the topics that meet their current needs, and then engage experienced specialists and practitioners to present and promote the discussion of leading-edge initiatives from around the globe. These events present our customers with opportunities to network and share best practices while addressing the current challenges and strategic issues faced in the industry to deliver focused, solution-driven outcomes.

“The 2013 Future Directions Forum topic, ‘Innovating to Improve Productivity,’ was excellent. It took us to a new level of delivery. Aspects of innovation came out that I did not anticipate prior to the forum.”

—Andy Behns, Manager Maintenance Network, BlueScope Steel

Looking Forward

Driven by a global trend of aging assets, greater regulatory requirements, changing feedstocks and new greenfield projects coming on line, we expect an increased demand for our Improve services over the coming years. To prepare for this, we are continuing to broaden our understanding of and ability to anticipate the varying needs of our customers, including ensuring safety, optimum capital spend, and the efficient and effective use of resources. Alignment with our customers through the development and maintenance of long-term, value-adding relationships focused on safely achieving business objectives while reducing costs, adding value and improving asset performance is critical to our goals within Improve, as well as WorleyParsons as a whole.

For more information on WorleyParsons' Improve capabilities, visit http://www.worleyparsons.com/Services/Improve/ Pages/default.aspx or e-mail improve@worleyparsons.com.

For more information about our Future Directions Forums, e-mail futuredirectionsforum@worleyparsons.com.

HQ Magazine Improve 15

Regional Report WorleyParsons' operations in the Gulf of Mexico The Gulf of Mexico (GoM) is the most developed offshore oil and gas region in the world, and it has seen a surge in attention from the industry in recent years. Despite changes in the regulatory environment that have included increased safety oversight and slower permit reviews, the GoM continues to offer a great deal of opportunity for producers. This reality is validated by the billions of dollars recently invested into deepwater projects by major companies including Chevron, which is operating the Jack and St. Malo projects off the coast of Louisiana, and ExxonMobil, which is developing the nearby Hadrian field. As a result of these and like investments by other major companies including BP and Shell, WorleyParsons' business in the GoM is growing.

Industry Drivers As the industry becomes more sophisticated, contractors are expected to bring a total project and total life-ofasset approach. In consistently delivering integrated services across all project phases—from day-onedesign to abandonment—our experienced teams are focused on aligning with the key value drivers of our customers. This is supported by our OneWayTM integrity management framework, which is in step with our customers' delivery assurance systems and provides them with the confidence and predictability in execution that is critical to attaining project goals, keeping people safe and developing long-term relationships.

Aside from safety, the key challenge in developing the often remote and complex GoM assets is personnel resources. With an older workforce preparing for retirement, maintaining continuity and ensuring the transfer of technical knowledge to the next generation of engineers is essential. WorleyParsons' Graduate Development Organization has attracted young talent and gives them an opportunity to work on exciting projects alongside experienced mentors that aid in training them to successfully apply our tools and systems.

High-value engineering (HVE) is also a key component of our strategy to close the resource gap and deliver value to our customers' projects by efficiently and costeffectively sourcing our global resources to reduce overall operator investment. Additionally, our Local/ global model provides our customers with access to subject matter experts from any part of the company.

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HQ Magazine Regional Report

Our Involvement Our entry into the region began with the award of BP's GoM Portfolio Management EPMS Contract in 2008—an Improve program that covered eight operating assets.

We have since secured two deepwater GoM pre-FEED contracts for Chevron that include subsea, topsides and floating production systems. Currently, WorleyParsons is providing full-field development services for Chevron's Buckskin-Moccasin development (as announced on page 11 of this issue), which utilizes a co-located and integrated team. Also, for BP, we are providing support to their existing operating assets with dedicated project teams to ensure seamless integration.

The activity we've engaged in onshore—such as the work we've just been awarded by Sasol for their Integrated Gas-to-Liquid (GTL) and Ethane Cracker Complex on the Louisiana coast and the Celanese Methanol project located in Clear Lake, Texas—has supported and educated our activities offshore. This experience includes identifying and managing nontechnical risks as well as providing the resources, tools and systems essential to the effective management of project portfolios while maximizing capital efficiency.

Our recent and future success in delivering fullyintegrated offshore solutions to this region is very much attributable to the added value INTECSEA— WorleyParsons' deepwater specialty division—brings.

INTECSEA has provided frontier technology leadership and expertise in subsea, risers and hulls for the industry's most challenging offshore field developments and pipelines projects for more than 25 years. Together, we provide a common delivery and execution platform and a single interface management program that enables us to work consistently across the span of an asset's lifecycle. The combination of INTECSEA's expertise and WorleyParsons' topsides and floating systems capabilities brings additional value in the execution of projects.

Opportunities Ahead The future of the GoM will remain strong as it provides a stable, low cost and resource-rich (people, equipment, fabrication, technology) environment for IOC’s and NOC’s to operate in. As southern parts of the GoM begin to develop and operators move into increasingly greater water depths, WorleyParsons is well-positioned to respond to the increasing number of opportunities and challenges of doing business in the region.

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Project Report INPEX Ichthys— Integrity and Maintenance In 2012, Transfield Worley was awarded the Integrity and Maintenance contract for the US$34 billion development of the INPEX-led Ichthys Project being developed off the Northwest coast of Australia.

The Ichthys Project will produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak. The development includes the largest semi-submersible central processing platform ever built, an offshore floating production, storage and offtake vessel, an 889 km subsea pipeline and an onshore LNG plant in Darwin.

About Transfield Worley Transfield Worley is a joint venture between WorleyParsons and Transfield Services. Since 1995, Transfield Worley has provided sustaining capital works support for the Woodside-operated Northwest Shelf project assets, including the North Rankin A platform, the Goodwyn A platform and the Karratha Gas Plant.

During the four years to completion, Improve is responsible for the complete integrity and maintenance build for all offshore, subsea and onshore facilities, providing world-class expertise in asset management and asset integrity programs. The business line's innovative cloudbased Asset Data Solution model will provide real-time global transparency and quality control throughout the CMMS (computerized maintenance management system) build process.

To learn more about Improve, see page 12 of this issue.

For more information on our Hydrocarbons capability, visit www. worleyparsons.com/csg/hydrocarbons/

HQ Magazine Project Report 17

Subsea Processing A global technology initiative explained by: Larry Forster and Mac McKee, INTECSEA

As the oil and gas industry pushes further into deeper water and greater distances from shore, the development of offshore fields is becoming more challenging, both technically and commercially. Subsea processing— with the ultimate goal of increasing recoverable reserves through more effective field management—adds to this challenge, both for operators and contracting engineers.

In general terms, subsea processing is the application of hydrocarbon processing equipment on the sea floor.

Traditionally, these sea floor systems comprise subsea separation, boosting and gas compression equipment, as well as the associated enabling components for electrical power transmission, distribution and subsea controls.

The most mature of these technologies is subsea pumping, followed by separation and compression.

While it is evident that some sort of processing is needed, why put that processing subsea? Why doesn’t the industry continue putting pumps, compressors and separators on platforms where they are easily accessible and much easier to install? To address this question, we review some of the advantages of subsea processing.

• Offshore platforms are extremely expensive.

Eliminating these platforms wherever possible provides significant capital savings and operational savings from reduced energy consumption.

• The subsea processing solution increases achievable production rates and overall recovery by reducing back-pressure on the reservoir.

• Achievable tie-back distances are also increased through an increase in system pressure on the upstream end of the tie-back.

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HQ Magazine Subsea Processing

• Flow assurance risks, such as hydrates and liquid slugging, are reduced by utilizing subsea processing.

These risks would be considerably higher with a topside processing solution due to the increased residence time of the unprocessed production stream in the system prior to processing. For gas compression in particular, the subsea solution helps to prevent liquid dropout and accumulation, which can lead to slugging.

• Health, safety and environment (HSE) is probably the most important advantage. A subsea solution is inherently safer for personnel, as there is no manned operation offshore and the environmental footprint is much smaller than that of a platform. There are also no emissions or disposals to sea. The HSE advantage is especially important in extremely harsh and sensitive environments, such as the Arctic.

In an effort to educate the industry on the latest status of subsea processing projects and technologies, INTECSEA and Offshore magazine publish the results of an annual survey of the industry in the form of a poster (due out in March, 2014). The annual poster is now recognized as a key source of knowledge, and also serves as a primary reference for our customers as our engineers assist in evaluating subsea processing options at the earliest stages of the development of worldwide oil and gas basins.

Subsea pumping and separation as development options are the most prevalent topics among our customers to date due to the relative maturity of the technology.

The application of pumping has increased fairly steadily, as evidenced by the upcoming installation of the Jack and St. Malo (Chevron) and Julia (ExxonMobil) fields, both in the Gulf of Mexico. Subsea separation is expected to proliferate due to its impact on high water-cut production—a situation we see more and more frequently as deep water basins age. Due to the particular challenges, subsea separation has a mixed history, which has led to a notable recent success of the Total Pazflor system operating in offshore West Africa.

>> Go to Contents Subsea compression started in the late 80s with the Kvaerner Booster Station. This unit underwent submerged testing at various sites in Italy and Norway, but the project was eventually abandoned in 1994 due to lack of operator interest at the time. With the start of the DEMO 2000 research and development program in Norway in 1999, funding became available for a number of vendors to take up the cause of subsea compression, and progress resumed.

While not yet field-proven, a moment of truth is near for subsea compression. The two projects to watch in the next year are Åsgard and Gullfaks. Both of these projects are operated by Statoil, who is the industry leader

among operating companies in subsea compression.

A third project which is beyond the conceptual phase and well into qualification testing is Ormen Lange, which is operated by Shell. All of these projects are located in offshore Norway. Norway, through its resident oil companies, educational institutions, and high-tech industry—all supported by high government emphasis on research and development—has become an ideal incubator for progressing new subsea technology. With the recent addition of Rosenberg WorleyParsons AS in Stavanger, we are now poised to support this technology drive at its source.

MEET OUR EXPERTS Larry Forster, INTECSEA Dr. Forster has more than 32 years of experience in the offshore oil and gas industry, primarily in bringing new subsea technology through the final stages of development into practical use. He has experience with manufacturing companies as well as the full range of activities in an integrated oil company, primarily focusing on deepwater offshore.

In his current role as subsea technical advisor and manager of subsea active production technology, Larry is responsible for identifying, prioritizing and targeting subsea technology needs for the US and Latin America that are aligned with INTECSEA's corporate vision and global technology strategy. He is also responsible for leading the development of specialized technology capability, including subsea processing.

Mac McKee, INTECSEA Mr. McKee has 10 years of mechanical engineering experience, with seven years in the subsea oil and gas industry. His project experience as a subsea systems engineer includes large, deepwater field system designs, electrically heated flowlines/pipelines, coiled tubing blockage remediation for flowlines and subsea Arctic system design. He is currently planning and development manager, assisting with INTECSEA’s strategic business initiatives, including subsea processing.

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Building our Relationship with BP Two master service agreements pre-qualify WorleyParsons to support BP anywhere in the world.

WorleyParsons has been providing project delivery services to BP for more than 30 years and currently has three long-term relationshipbased global agreements in place.

In the period 2007 to 2009 WorleyParsons and INTECSEA were selected by BP as one of three preferred global contractors in BP’s effort to build strategic relationships with fewer key suppliers, thus maximizing standardization for the purpose of delivering safer high-quality designs and achieving a higher efficiency.

“It’s important that we can work with a company where we can trust its management systems, its processes, and its connectivity globally, that’s the type of company we want to work with”, says Neil Shaw, BP’s chief operating officer, projects, “And equally, we want to reciprocate so that our suppliers experience the same BP in one part of the world to another part of the world.”

Building on this relationship over the past two years, BP awarded WorleyParsons four environmental services framework agreements—Windmill (North America) and Atlas (Rest of World) for broad environmental and consulting services, and Lighthouse (North America and Rest of World) for oil spill planning and response. Collectively these are the equivalent of two global master services agreements (MSAs) that pre-qualify WorleyParsons to support BP anywhere in the world.

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HQ Magazine Building our Relationship with BP

WorleyParsons is leveraging its global reach to deliver projects within these MSAs, as each work release assignment will be locally managed with global and regional expertise available to support the efforts. Each MSA has a framework of common processes, procedures, templates, and reporting for health, safety, security and environment, quality and social performance excellence. This strategy ensures consistent performance along with consolidated reporting and metrics, while embedding and applying BP’s policies and standards.

These awards follow 20 years of supporting BP in managing remediation programs in Canada. The consulting and planning MSAs now put WorleyParsons in a position to leverage our relationship and continue supporting BP through oil spill preparedness and response, crisis and continuity management planning, restoration and remediation services on a global basis.

“As a customer, you don’t forget when a contractor is really able to support you; when a partnership goes beyond the transactional nature of a contract to build up a relationship that helps both companies perform better. Performance is actually quite a broad concept of the quality of services, the quality of resources and the competitiveness of the deal, but there is also an intangible element that allows us to develop a different relationship based on integration at the strategic level,” says Neil Shaw.

>> Go to Contents

Upcoming Events Join us at these 2013 industry events to learn more about our specialist capabilities in offshore and sulphur technology: OFFSHORE TECHNOLOGY CONFERENCE (OTC) BRAZIL October 29-31, 2013

Rio de Janeiro, Brazil

Pavilion 3, Booth #E09 and Technical Presentations: Tuesday, October 29 Session 7: Risers and Flowlines 2:25 p.m.:

"A Challenging Trunkline ILT Design driven by S-Lay Installation—A Robust Design Solution using

Advanced Numerical Simulation" —G. Kaliyaperumal, T. Zhao, B. Thompson, P. Cooper, R. Large, INTECSEA

Session 9: Constructability and Design Considerations 3:40 p.m.:

"Cellular Tendon—Enabling Technology for Ultra-Deep Water TLPs " —Z.J. Yu, INTECSEA

Wednesday, October 30 Session 26: Brownfield: Debottlenecking for Safety Extend the Operational Lifetime 2:50 p.m.:

"Optimized Structural Integrity Management System and Inspection Program for a Converted FPSO" —A. Nezamian, J. Altmann, WorleyParsons

Thursday, October 31 Session 37: Tools and Methodology Applied to Risk and Integrity 11:35 a.m.:

"Subsea Geohazard Risk Assessment and Pipeline Integrity Management: A GIS-Based Data Integration Approach" —M. Li, D. Zhai, M. Bik, M. McQueen, INTECSEA

Session 46: Subsea and Facilities 2:50 p.m.:

"Submarine High-Voltage Power Transmission: Challenges & Opportunities" —R.W. Voight, INTECSEA

Session 47: Flexible and Umbilicals 3:15 p.m.:

"Nonlinear Dynamic Simulation of Flexible Risers with Multi-Layered Pipe Models" —A. Majed, P.A. Cooper, INTECSEA

Session 48: Materials Performance II 3:15 p.m.:

"Inhibitor Dosage Rates and Corrosion—A CFD Model Investigating Inhibitor Over-Dosing and Increased Corrosion Rates in Subsea Pipelines" —D. Peng, I. Annan, A. Salami, T. Wood, A. Taylor, INTECSEA; S. Jones, Consultant

SULPHUR INTERNATIONAL CONFERENCE November 4-7, 2013

Miami, USA

Booth #16 Monday, November 4

WorleyParsons One Day Sulphur Plant Operations & Lessons Learned Workshop:

Covering operational issues and lessons learned over 60+ years of WorleyParsons’ experience designing, commissioning and operating Amine Treating, Sour Water Stripping, Claus Sulphur Recovery and Hydrogenation/ Amine Tail Gas Cleaning Units, the emphasis of this workshop is on practical operation guidelines and lessons learned from actual case histories.

Wednesday, November 6

Stream A: Sulphur and Sulphides, Sulphur Recovery II

2:45 p.m.: "Something for Nothing: How Existing SRUs can Benefit from Increasing SOx Emission

Stringency" —Angela Slavens, VP & Global Director - SulphurTechnology, WorleyParsons &

Philippe Micone, Business Development Manager – Industrial Markets, Cansolv Technologies Inc.

Connect with us on: HQ Magazine Upcoming Events 21

Office Intel Highlights from our locations around the world WorleyParsons wins MEED 2013 GCC Oil and Gas Project of the Year Award

Rosenberg WorleyParsons sponsors the Norwegian Formula Student (FS) Project

In May, the Ma’aden Ammonia Plant project was awarded the 2013 Gulf Cooperation Council (GCC) Oil & Gas Project of the year - Saudi Arabia award

by MEED (Middle East Engineering Digest). MEED is an independent and highly respected business intelligence services firm specializing in the Middle East region with a focus on investments and projects.

In July 2013, the Norwegian team from the University of Stavanger participated in Europe’s most established educational motorsport competition, Formula Student, run by the Institution of Mechanical Engineers.

WorleyParsons was honored to receive the award in conjunction with Ma’aden and Samsung Engineering for recognition in quality and excellence in design, engineering, construction and contribution to the economy, society and environment.

Backed by industry and high-profile engineers such as patron Ross Brawn OBE, the competition aims to inspire and develop enterprising and innovative young engineers. Universities from across the globe are challenged to design and build a single-seat racing car in order to compete in static and dynamic events that demonstrate their understanding and test the performance of the vehicle.

WorleyParsons played an integral role in the development of the Ma’aden 3,300 tpd Ammonia Plant, the world’s largest ammonia facility, by delivering basic engineering, EPC evaluation and PMC (project management consulting) services. Located in Ras Al Khair, on Saudi Arabia's eastern coast, the success of this project is largely due to teamwork, commitment to supporting Ma’aden and maintaining their schedule, and creating a multi-national workforce of over 12,000 people comprising 49 different nationalities. We are pleased to announce the team achieved commercial production of ammonia on time, within budget and recorded a safety achievement of 50 million safe working hours.

Rosenberg WorleyParsons delivered a generous sponsorship agreement that included the contribution of team clothes and marketing activities.

The award was accepted by David Huggins, project director, Ma’aden Phosphate on behalf of WorleyParsons.

David commented, “We are honored and pleased to be recognized for our involvement in the Ma’aden Ammonia Plant project and congratulate everyone who had the privilege to have been a part of it. This award clearly acknowledges WorleyParsons as a major PMC provider in the chemical/ petrochemical industry.”

On June 19, the students invited Kristin Færøvik, managing director of Rosenberg WorleyParsons, to the press conference and the unveiling of their car, MEAN EKTE ENGINEERING MACHINE. The students proudly presented their work and informed about their challenges along the way. Færøvik commented, “It is very interesting to listen to the project process you have been through this year. It is exactly the same process and way we work at Rosenberg WorleyParsons.

In our world, your car represents a complete EPCI project including commissioning and operations. It’s a great achievement moving from detailed design to driving the finished product in six months”.

For more on this award, visit http://www.meed. com/supplements/2013/meed-quality-awards-forprojects-2013/gcc-winner-mashreq-oil-and-gasproject-of-the-year-saudi-arabia/3176210.article

Rosenberg WorleyParsons is proud to support the next generation of engineers.

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HQ Magazine Office Intel

>> Go to Contents

Recent Appointments New additions and changes to our Hydrocarbons team Edward Hernandez Vice President—Latin America Hydrocarbons Edward will take on Hydrocarbons sector responsibilities for Latin America, which includes overseeing our business development activities and managing key customer relationships. In his role, Edward will support WorleyParsons' Latin American locations to grow their hydrocarbons businesses.

Edward brings more than 20 years of experience in project execution and business development on international and USA projects in multiple energy sectors including oil and gas production, refining and chemicals, pipelines and power generation. He was project manager for projects in Venezuela’s Orinoco Belt, Peru, Colombia, Ecuador and Central America.

Edward joins us from another EPCM company where he held a Vice President position and had regional responsibility for Latin America business development. This included developing new customer relationships and an overall business strategy, as well as managing new strategic global accounts such as Talisman and Repsol. Edward also successfully led both onshore and offshore pursuits for major hydrocarbons contracts in Peru, Mexico and Ecuador.

Edward will initially be based in Houston, but will be relocating to Latin America in the future.

Garry King Vice President— US Unconventional Oil & Gas Garry champions the development of our Unconventional Oil & Gas (UCOG) strategies and guides their realization in direct collaboration with our location and UCOG business managers. Since joining WorleyParsons in 1994, Garry has held several key positions that have supported the growth of the company. His broad understanding of the various markets that UCOG crosses, coupled with his approach to guiding change and development will enable us to add greater value to our UCOG customers' projects.

Odette Eng Global Customer Relationship Manager, ExxonMobil Downstream Odette Eng has been named WorleyParsons' Global Customer Relationship Manager (GCRM) for ExxonMobil's downstream business. This includes all ExxonMobil affiliates related to their refining and petrochemical business worldwide.

As WorleyParsons' Select Refining team lead, Odette brings more than 30 years of global downstream and refining experience working for major technology licensors such as Unocal, UOP and KBR to this role.

Her expert process engineering qualifications, as well as her extensive experience in project management and technology delivery, have aided her in the successful anticipation of changing markets.

HQ Magazine Recent Appointments 23

Middle East, North Africa, India, Asia and China Graham Hill Senior Vice President

E: graham.hill@worleyparsons.com

Canada Mike King Senior Vice President

E: michael.w.king@worleyparsons.com

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

E: jan.vanwilligen@worleyparsons.com

Europe and Sub-Saharan Africa Jim Osborn Senior Vice President

E: jim.osborn@worleyparsons.com

Australia and New Zealand Scott Hughey Senior Vice President

E: scott.hughey@worleyparsons.com

Subsectors and Business Lines Chris Mole Senior Vice President

Local Office Global Hub

E: chris.mole@worleyparsons.com

HQmagazine Hydrocarbons Quarterly

To contact HQ Magazine, please email: hqmagazine@worleyparsons.com For general inquiries, please email: hydrocarbons@worleyparsons.com