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HQmagazine Hydrocarbons Quarterly

Content Managing Editor Heather Harrington


Production Manager, Editor & Designer

The Shale Oil & Gas Revolution: Full lifecycle management of unconventional resources

Jessica Taylor

Produced by WorleyParsons Marketing & Research Group


Issue 8 Q2, FY2014

WorleyParsons' unique perspective on the optimization of unconventional developments covers the entire scope of project activity. Refer to page 12 to learn how we're applying our front-end consultancy services, risk and water management strategies, lean engineering tools, and asset management and restoration plans to maximize capital efficiency globally.

In this issue: On the cover: WorleyParsons onshore development site, Eagle Ford Basin Texas, USA Š WorleyParsons 2012

p.4 Focus on Zero Harm p.5 Thought Leaders

WorleyParsons demonstrates sulphur expertise at the 2013 Sulphur International Conference

p.18 Regional Report

An insight into our operations in East Africa

p.19 Project Report


Learn about the environmental impact statement scope of work we delivered to the Australia Pacific LNG project

p.6 Global Awards

p.10 Conference Report A look at our participation in the

p.20 Upcoming Events Want to catch up with us?

p.16 Excellence in Oman How WorleyParsons is delivering

p.22 Office Intel See what’s happening in our

2013 Offshore Europe Conference

Check out where we'll be in 2014

Hydrocarbons Quarterly


HQ Magazine Content

local value to the OOCEP project

locations around the world

p.23 Recent Appointments

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Message from Brian Evans the implications of unconventional resources take an even more global focus—thanks in part to economically viable extraction methods—we're keen to share our expertise and lessons learned in this area.

The main focus of this issue is unconventional oil and gas (UCOG). WorleyParsons has recently leveraged the UCOG work we've done in Queensland and Canada to achieve success in the United States by delivering services across the entire course of a development's lifecycle, and we are very excited to now be moving with our UCOG customers to Europe and South America, as well. As the implications of unconventional resources take an even more global focus—thanks in part to economically viable extraction methods—we're keen to share our expertise and lessons learned in this area. Additionally, while we are engaged in hydrocarbons activity globally, this issue also includes a feature on our East African hydrocarbons business. This developing region shows tremendous potential for growth and opportunity, both onshore and offshore, and our hydrocarbons and infrastructure capabilities and resources combine to present our customers there with very broad, world-class expertise. In the second quarter of this fiscal year, WorleyParsons showcased our specialist capabilities at two major events: the 2013 Sulphur International Conference and the 2013 Offshore Europe Conference. In addition to serving as a platform for us to share our knowledge and experience, events like these also provide us with the opportunity to acquire knowledge and engage with our peers in the industry. Learn more about our recent conference activity on pages 5 and 10. 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 4) and project delivery (page 19), how we're delivering projects in harsh and remote environments (page 16), and where we've been acknowledged in the communities and industries in which we work (page 22). I hope you enjoy this latest issue of HQ,

Brian Evans Managing Director, Hydrocarbons

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


Focus on Zero Harm Focusing on safety throughout our global operations WorleyParsons has been presented with the 2013 Excellence in Engineering for Safety award at the prestigious New Zealand Engineering Excellence ceremony in Wellington, New Zealand The award recognizes the Shutdown Management Framework (SMF) for providing excellence in an engineer-led program of work or system that significantly decreases the instances of workplace illness and injury. SMF is a seven-phase approach to shutdown management which ensures that safety, quality and reliability are integrated into project shutdown planning and execution from the beginning and through every phase. CEO of WorleyParsons in New Zealand, Pat Hills, stated, “For the WorleyParsons Group worldwide, SMF is an important expertise that is being incorporated into our procedures in the many locations around the world where we operate. "Ensuring the safety of not only our own staff, but also the safety of our customers and sub-contractors is paramount. This ideal underpins our entire approach, ensuring that our systems and processes create the safest environment for our people and those we work with.” The framework addresses customer and supplier needs as well as those of WorleyParsons as a managing contractor. The detailed planning and rigorous risk management at the heart of WorleyParsons’ SMF has set the industry standard in ensuring safe and efficient shutdowns and problem-free plant restarts for customers across New Zealand since its inception in 2007. “Shutdowns need particular focus on safety issues from planning to closeout due to the large number of people working on site in a compressed time-frame. We have invested considerable time and expertise to establish a framework that has delivered tangible results in terms of both safety and efficiency through SMF,” Hills said. While other OneWayTM Framework Elements also apply, the primary element demonstrated above is 'Risk Management': the application of principles and processes that enhance decision-making, leverage opportunities and assist in reducing threats for existing and planned activities.

For more information on WorleyParsons’ commitment to zero harm, visit 4

HQ Magazine Focus on Zero Harm

1. Leadership and governance 2. Risk management 3. Caring for our people and the environment 4. Selection and competency 5. Working with customers 6. Engineering 7. Working with vendors and contractors 8. Field execution 9. Management of change 10. Crisis and emergency management 11. Incident and behaviour analysis 12. Assessment and improvement

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Thought Leaders WorleyParsons shares expertise at the 2013 Sulphur International Conference & Exhibition WorleyParsons was represented at the 29th-annual Sulphur International Conference and Exhibition, which took place from November 4-7, 2013 in Miami, by personnel from our sulphur centers of excellence in London and Monrovia, California, as well as a sulphuric acid specialist from our Toronto office. This conference—the industry’s premier international sulphur and sulphuric acid event—brought together more than 600 representatives from a variety of disciplines. The conference program featured a day dedicated to commercial presentations that reviewed the status of the world sulphur and sulphuric acid industries, markets and prospects. The technical program spanned the final two days of the conference, and included the presentation of a paper entitled, “Something for Nothing: How Existing SRUs Can Benefit from Increasing SO2 Emmission Stringency” given by WorleyParsons’ Vice President and Global Director of Sulphur Technology, Angela Slavens (left).

This technical paper demonstrated how sulphur recovery unit (SRU) operators who are faced with new environmental standards requiring increased overall conversion can also increase throughput without enlarging the SRU itself. This is achieved by employing the Cansolv® scrubbing process to capture and recirculate SO2 from tail gas, which reduces air demand and, therefore, nitrogen dilution. Prepared by Angela Slavens, Bill DeWees, Brian Murphy, Raymond So and Steve Pollitt of WorleyParsons, as well as Joe Gelder, Martin Lebel and Nancy Moreton of Shell Cansolv, this paper received positive feedback and sparked new conversations about WorleyParsons’ capabilities in this area.

We also hosted a stand on the event’s exhibition floor, which was occupied by more than 60 exhibitors who shared products, technology and/ or equipment over the course of the event. Sulphur and Sulphuric Acid Technical Workshop Shares Operational Best Practices For the first time, WorleyParsons hosted an exclusive one-day Sulphur Plant Operations and Lessons Learned workshop attended by a diverse group of approximately 30 professionals. The workshop—held on the first day of the conference—consisted of four sessions and covered operational issues and lessons learned over the more than 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 facilitators emphasized practical operation guidelines and best practices from actual case histories, and shared their experience with audience members who were encouraged to collaborate and share their own experiences. The workshop team included primary facilitators Frank Bela and Dave Evans, with support from Bill DeWees, Steve Pollitt, Angela Slavens, Robin Street and Stephen Tebaldi from WorleyParsons as well as Michael Heisel of ITS Reaktortechnik and Bernhard Schreiner of Linde Gas. This workshop demonstrated partnership between WorleyParsons and our customers, and confirmed our thought leadership in this area as verified by conference attendees who reached out to us to learn even more. Following the success of this workshop, WorleyParsons has been asked to present our material during another one-day workshop at the Sour Oil & Gas Advanced Technology (SOGAT) conference in Abu Dhabi.

HQ Magazine Thought Leaders 5

Global Awards Major Hydrocarbons contracts awarded this quarter

Across the World


WorleyParsons Awarded Global Enterprise Frame Agreement with Shell

WorleyParsons inks strategic alliance with Deliotte in Australia

WorleyParsons has entered into a global enterprise frame agreement with Shell covering surface facilities capital projects for unconventional oil and gas assets. The five-year agreement, plus an optional five-year renewal, provides for the full range of engineering and procurement (EP); engineering, procurement and construction management (EPCM); and engineering, procurement and construction (EPC) services.

WorleyParsons and our subsidiary Evans & Peck have extended our alliance with Deloitte to offer advisory services to the Australian market, combining the strength of our real world experience in engineering and project delivery services with our alliance partner’s extensive advisory experience in business solutions.

The agreement covers identified projects at Shell’s unconventional oil and gas assets in the US, Canada, Asia and future opportunities in Europe, the Middle East, South America, Australia and Africa, as well as the development of a standardized global project catalog. WorleyParsons will be providing these services under its local/global business model, which is focused on delivering ongoing improvements to our customers’ significant capital assets through long-term relationships. Commenting, WorleyParsons' Chief Executive Officer, Andrew Wood, said, “WorleyParsons has a growing global relationship with Shell. This award gives us the opportunity to provide total project delivery services to Shell and thereby assist in the development of their unconventional oil and gas assets around the world.” For more on our unconventional oil and gas capabilities, refer to page 12 of this issue.


HQ Magazine Global Awards

Our alliance with Deloitte gives us an opportunity to grow and diversify our business and our customers. It draws upon skill-sets from across our organization, meaning increased access to a variety of project and business opportunities for our people. The alliance is part of our advisory services offering being developed by the recently established New Ventures Group and follows the success of a similar alliance in Canada. The two companies are pursuing a further extension of the relationship in South Africa later this year. Headed by Dave Steele, WorleyParsons' managing director of the New Ventures Group, the team is responsible for exploring opportunities that are aligned with, but in addition to, our traditional areas of activity and reflect WorleyParsons' commitment to constantly challenge ourselves to develop new opportunities for growth. “We believe the synergy between Deloitte and Evans & Peck advisory solutions and the technical capabilities and services of WorleyParsons make this a compelling option for key customers in the oil and gas, mining and infrastructure sectors,” Steele says. Through our collaboration with Deloitte, we have already begun to deepen relationships and secure work with key customers in Canada in areas including capital project advisory, business assurance and data solutions.

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Canada WorleyParsons awarded EPC contract for MacKay River Commercial Oil Sands Project WorleyParsons, in conjunction with our consortium partner CPECC Canada Ltd (a subsidiary of the China Petroleum Engineering and Construction Corporation), is pleased to announce the award of a contract for the engineering, procurement, fabrication and construction (EPC) of the field facilities for the MacKay Operating Corporation – MacKay River Commercial Project Field Facility Phase 1. The MacKay River Commercial Project plant site is located northwest of Fort McMurray in Alberta, Canada. When completed, the project will be capable of producing 35,000 barrels of bitumen per day. WorleyParsonsCord, our construction group in Canada, will be responsible for execution of the project scope that includes the engineering, procurement, modularization and field construction of nine steam-assisted gravitydrain well pads and associated gathering lines. Andrew Wood, CEO of WorleyParsons, said, “We believe that our integrated EPC project delivery model combining the local strength of WorleyParsonsCord with the expertise and capacity of our partner CPECC, offers an exciting new approach for the successful delivery of this project.”

Renewal of contracts for Canadian Improve alliances WorleyParsons is pleased to announce that we have received a letter of intent from Imperial Oil to renew the Engineering and Procurement Agreement for the Syncrude CoSyn and Imperial Oil Upstream Alliances for a further five years, commencing July 1, 2014.

These relationships began in 1991 to provide a full range of engineering and procurement services for brownfield and greenfield projects at the Syncrude and Imperial Oil Upstream facilities. Around 900 WorleyParsons personnel are deployed on the alliance project teams in Alberta. Commenting, WorleyParsons’ Chief Executive Officer, Andrew Wood, said, “Renewals of longstanding key Improve relationships such as these recognize the true value provided by our integrated teams. We are delighted to continue our relationships with Syncrude and Imperial Oil.”

Ecuador PetroEcuador extends Esmeraldas Refinery contract EP PetroEcuador (Empresa Estatal Petróleos del Ecuador), the national oil company of Ecuador, has extended WorleyParsons’ Project Management Consultancy Services contract for the Esmeraldas Refinery Rehabilitation Project. This refinery—located on the north coast of Ecuador— is the largest in the country at 110,000 barrels per day. The project is a significant revamp and the modernization effort includes three plant shutdowns and multiple international and local EPC contracts. WorleyParsons has been working on the Esmeraldas Refinery Rehabilitation Project since December 2011. The contract extension will enable WorleyParsons to inspect and manage the ongoing revamp of the fluid catalytic cracking unit along with associated utilities. The contract extension secures WorleyParsons’ ongoing involvement with the project through the completion of the construction phase.

HQ Magazine Global awards 7

India WorleyParsons awarded contract for Reliance Industries Ltd.'s Jamnagar Gasification J3 Project WorleyParsons has been awarded a contract to supply sulphur technology for the Reliance Industries Ltd. (RIL) Jamnagar Refinery Gasification Project in Jamnagar, India. Part of the Reliance Group, India's largest private enterprise, RIL specializes in the energy and petrochemicals industries. WorleyParsons is supplying a technology license, process design package and detailed engineering support to Linde Engineering India, the prime contractor for the project. WorleyParsons is leveraging its workshare capabilities by providing engineering services from WorleyParsons’ Monrovia, California location supported by its local Indian offices; detailed engineering is being completed from Linde’s office in Vadodara, India supported by WorleyParsons’ India engineers. The scope involves four sulphur recovery units (SRUs), each with a dedicated tail gas treating unit (TGTU), which will produce elemental sulphur from hydrogen sulphide resulting from the purification of syngas produced in the gasification process. Each train will have a capacity in the range of 1,000 metric tons per day (MTPD) with flexibility to process a wide range of acid gas feed streams depending on the feedstock to the gasification units—petroleum coke from the refinery and imported coal. The technologies to be employed are two-stage Claus, Linde SURETM oxygen enrichment, BSR® tail gas treating and EMRE degassing, all of which are being licensed by WorleyParsons. Rather than employing a dedicated

tail gas amine solvent in the TGTU, SRU tail gas will be recycled to the upstream Linde Rectisol® gas purification unit for 99.9+ percent overall sulphur recovery efficiency, resulting in the lowest net present cost for the facility (as demonstrated in a paper recently co-authored by WorleyParsons and Linde, "Integrated Rectisol® AGRU/SRU/TGTU Flow Scheme for Cost–Effective “Zero” Emissions"). Commenting, WorleyParsons' Managing Director of Global Hydrocarbons, Brian Evans, congratulated Angela Slavens, WorleyParsons' global director of Sulphur Technology, and the WorleyParsons team who "pursued this project with longterm focus and dogged determination." About the Jamnagar Refinery Complex Reliance Petroleum Ltd. built the world’s largest grassroots refinery in 1999 and doubled the capacity in 2010, making the Jamnagar Refinery Complex the largest in the world. In addition to its impressive size (1.3 MMBPD), Reliance’s Jamnagar Refinery can process a wide variety of crude oils ranging from sweet to heavy, with sulphur content up to 4.5 wt. percent. The gasification facility will be the world’s largest project of its kind. The refinery is also home to Asia’s largest mango orchard, which includes more than 100,000 mango trees producing 110 varieties.

Digital rendering of the Jamnagar Refinery Gasification Project TGTU


HQ Magazine Global Awards

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New Zealand WorleyParsons moves to full ownership of the Transfield Worley joint venture in New Zealand WorleyParsons has moved to full ownership of the joint venture with Transfield Services in New Zealand, reflecting our confidence in the New Zealand market. WorleyParsons has had a presence in New Zealand since the early 1970s and has been involved with the Transfield Worley joint venture since the late 1990s. Executing 1.8 million man-hours of engineering, construction and maintenance work per annum, it is the largest design-build contractor in New Zealand in the energy and process industries. Commenting on the acquisition, Transfield Worley CEO, Pat Hills, said, “This acquisition demonstrates the faith that WorleyParsons continues to have in this high performing New Zealand business and in the potential growth in the New Zealand industrial sector. “The success of the company since the early 1970s to support the development of the offshore Maui gascondensate field has been founded upon our ability to manage complex project and contract issues and deliver safe, reliable facilities at the least sustainable cost. “For Transfield Worley’s existing customers, the move to full ownership of the joint venture reinforces WorleyParsons’ commitment to them and their access to the capabilities of the global WorleyParsons organization. “Our staff will enjoy greater access to WorleyParsons’ processes, systems and tools, as well as the ongoing benefits of being a part of the global WorleyParsons business and the diversity of opportunity that our 39,000-strong global business provides,” Hills said.

The head office is located in New Plymouth and has supported the oil and gas industry for 35 years. We also have offices in Auckland, Hawke’s Bay, Whangarei, Wellington and Christchurch, employ more than 430 professional staff and manage more than 500 maintenance and construction personnel through the contracts and projects under management. The company will now trade as WorleyParsons in New Zealand.

Norway Rosenberg WorleyParsons inks deal with GE Oil & Gas for delivery to Statoil's Snøhvit field Rosenberg WorleyParsons has been awarded a contract with GE Oil & Gas for delivery of 14 subsea structures to Statoil’s Snøhvit field. The contract involves engineering, procurement and construction of manifolds, pipeline end terminations (PLETS) and pig launch/receivers. The project will be executed with engineering support from WorleyParsons' subsea specialist company, INTECSEA. The work has already commenced, and will be completed for delivery by May 2015. The estimated contract value is NOK 62 million. “We are delighted to have been awarded this contract from GE Oil & Gas, a major player in the global subsea market. The contract also represents the first step in realizing synergies between Rosenberg WorleyParsons and INTECSEA for delivery of complete subsea EPC solutions to the Norwegian market,” says Kristin Færøvik, managing director for Rosenberg WorleyParsons.

For more information on WorleyParsons contract awards, visit

HQ Magazine Global Awards 9

Conference report WorleyParsons attends a successful Offshore Europe in Aberdeen

Offshore Europe, the region’s premier biennial upstream event, was held from September 3-6, 2013 in Aberdeen. WorleyParsons personnel from around the region and globe gathered at the event to highlight our newly integrated Northern Seas offering. This was WorleyParsons’ first attendance at the event which attracted more than 63,000 participants, up 33 percent on 2011 figures and its highest attendance ever. A record-breaking 1,500 organizations exhibited in the six exhibition halls which this year covered an expanded floor space of 27,217 square meters. Twenty-two operating companies took stands this year, the largest representation of operators ever to take part, and 262 organizations were exhibiting for the first time. Companies from 37 countries were represented and 33 international pavilions were present, with Korea and Australia both hosting pavilions for the first time. WorleyParsons showcased its seamless integrated offering across the project lifecycle by including representatives from each significant part of the organization: WorleyParsons, INTECSEA and the recently-acquired Rosenberg WorleyParsons in Norway. The Aberdeen office promoted its specialty engineering consulting services for brownfield and greenfield assets, focusing on Select phase services along with decommissioning, all backed by definitive decision ranking analysis.


HQ Magazine Conference Report

There was a great buzz in the air at the conference, with a noticeable focus on emerging technologies such as subsea processing, the resurgence of the UK North Sea and the Norwegian offshore market. Customers and colleagues gathered to discuss current challenges and future directions of the region and industry with a heavy emphasis on safety, while also attracting recent graduates and professionals looking at career opportunities with WorleyParsons. Several distinguished guests visited the WorleyParsons stand throughout the week, including representatives from UK Trade and Investment (UKTI), and Kazakhstani and Australian Northern Territory government delegations.

Aberdeen Location Manager Neil McMillan said of the event, “We continue to strengthen relationships with customers in the Northern Seas region through some high-level discussions with key senior management and build on our commitment to Aberdeen and the Northern Seas with a strong focus on safety. “Aberdeen is at the heart of Northern Seas development and to be able to host this event in this city is key for us in establishing good networks within the region,” he added.

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WorleyParsons also hosted a customer event held at the prestigious Gordon Highlanders Museum where approximately 65 customers and staff were treated to a tour of the museum during an evening of networking. Offshore Europe Conference Chairman, Malcolm Webb, said that the UK oil and gas industry is the country’s greatest industrial success story in more than 100 years and the event in Aberdeen served to underline that fact. “At the biggest Offshore Europe ever, we’ve addressed the key themes that will require industry focus to sustain activity in the UK Continental Shelf. None of these is more important than safety.”

The event provided the region a moment of reflection on the issue of safety, and many presenters and speakers including the Princess Royal, paid tribute to the four people who tragically lost their lives in the recent helicopter crash off Shetland.

To learn more about WorleyParsons' deepwater and subsea arm, INTECSEA, please visit For more on WorleyParsons' offshore presence in Norway, please visit GlobalPresence/Europe/rosenbergworleyparsons.

HQ Magazine Conference Report 11



REVOLUTION The combination of directional drilling and hydraulic fracturing has made the exploitation of previously almost untouched shale and tight oil and gas reserves an economically viable reality. Since the late 1940s, more than two million wells have been hydraulically fractured worldwide—more than one million of which are located in the United States. The past decade has seen the US lead the way in developing unconventional oil and gas resources—largely because of the success in the Barnett, Bakken, Eagle Ford and Marcellus basins, which have already out-produced even the most optimistic forecasts. In fact, according to a recent Wall Street Journal account, the country is on the verge of becoming the


HQ Magazine The Shale Oil & Gas Revolution

world's largest producer of oil and gas, with oil production having surged to its highest level since 1992. The National Petroleum Council has reported that up to 95 percent of oil and natural gas wells drilled today are hydraulically fractured and a government-industry study found that up to 80 percent of natural gas wells drilled in the US in the next decade will require this extraction process, indicating that shale is here to stay. Opportunity and Challenge The unconventional oil and gas (UCOG) phenomenon is one of the greatest opportunities for energy security in human history. For the upstream energy sector, the key to capitalizing on this opportunity is for operators and contractors to responsibly and sustainably develop these resources. This will require a change in organizational approach that places greater emphasis on pre-planning during early appraisal activities and

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UCOG development presents operators with simultaneous challenges previously unknown in two broad areas: earning the social license to operate and effective program management of complex field development activities. Regarding social license, when compared to conventional developments, UCOG developments are far more controversial, both on the surface—increased truck traffic, equipment handling and noise; and subsurface —perceived threats to fresh water aquifers from fracturing. Regarding program management, UCOG developments have much higher activity levels than conventional developments, as the number of wells drilled and the associated infrastructure support required can be up to 100 times greater. Developing an operator-contractor partnership during the early appraisal phase allows for effective management of a UCOG project as the activities rampup during the development phase. WorleyParsons’ Full Field Program Management (FFPM) platform can transform a potentially chaotic environment into a continuously-improving manufacturing process. It begins with appropriate management of non-technical risks, pre-planning for an optimized development program, logistics and supply-chain management throughout development, and effective data and asset management throughout the life of the field.

Accounting for Non-technical Risk Operators are intensely focused on managing the costs and risks related to sub-surface activities, which typically comprise 85-90 percent of the capital expended on a shale project. While aboveground activities in FFPM account for far less capital investment, if they are not properly managed, they will cause bottlenecks and negatively impact schedule, cost and project returns. But there is an even greater downside. The cost to effectively address non-technical risks, including interacting with regulatory, governmental and public stakeholders; effective master planning; and water assurance, typically represent a small percentage of total above-ground costs. The ‘cost’ of mis-management can, however, be enormous. A Goldman Sachs study on the causes of major energy project delays on 19 of the ‘Top 190’ global oil and gas projects concluded that non-technical risks were reported as causing delays at a significantly higher frequency when compared to technical risks as seen below.


73 %

(political or stakeholder-related)

Type of Delay Reported

an increased focus on managing ‘non-technical risks’— both of which are essential for efficient, cost-effective execution. Contractors must deliver a sophisticated offering that includes collaboration and advisory services for government, regulatory and community outreach; a lean manufacturing process that deemphasizes engineering and focuses on supplychain management and continuous improvement; and the development of tools for standardization, field optimization and data management.


63 %

(cost- or contract-related)


21 %

Reporting Frequency Source: Goldman Sachs Investment Research

HQ Magazine The Shale Oil & Gas Revolution 13

Environmental Landscape for Shale The aggressive development of shale gas has resulted in the reduction of natural gas prices, which has underpinned a large amount of gasfired power generation construction. Low-priced gas-fired electric generation (along with emissions reduction pressure from the US EPA), has reduced the United States' reliance on coal-fired generation, significantly contributing to the country’s greenhouse emissions falling to their lowest level in 20 years. While the increased use of natural gas has resulted in measurable environmental benefits, critics have nevertheless attacked UCOG activities on three broad fronts: non-combusted methane releases during operations (a highly concentrated GHG); the risk of fracking fluid or hydrocarbon migration into a water aquifer (typically many thousands of feet shallower than the shale formations being fracked); and concern that this new technology will prolong mankind’s reliance on hydrocarbons when we should be focused on renewable or other forms of non-GHG emitting energy sources. Operators spending billions of dollars developing UCOG projects are required to perform with a new sense of social sophistication, including intense interaction with all stakeholders along the environmental and social spectrum. WorleyParsons’ global Environmental Management and Approvals consulting practice provides environmental management and social responsibility expertise to our customers. This collaborative and multidisciplinary team delivers local solutions around the world with overarching functional governance and stewardship. This enables the successful completion of projects in a manner that is aligned with business objectives, and contributes to community well-being and global sustainability. Total Water Management Solutions Arguably the greatest of the mounting environmental concerns surrounding the development of UCOG resources regards water availability and management. This issue is now on the CEO’s desk, not just the hydrogeological engineer’s. Addressing water challenges—which are acute in certain geographic areas—and providing an environmentally-compliant, full-lifecycle water assurance program has evolved from a taken-for-granted project detail, to a frontand-center critical-path element for most UCOG developments. Total water assurance begins with water source identification, water quality, water handling and storage, regulatory requirements, transport, flow-back water treatment and 14

HQ Magazine The Shale Oil & Gas Revolution

Establish Sustainable Source Water Options Short- and LongTerm Storage and Infrastructure Evaluation

Disposal/Reuse Storage Option Evaluation

Sustainable Water Management Full Lifecycle Backflow Treatment /Reuse Option Evaluation

Review Pretreatment Options

Review Frac Water Compatibility

recycling, and wastewater disposal. Our full water management lifecycle is seen in the diagram above. WorleyParsons’ capability and experience in this area is exceptional and differentiating. We bring a strategic shift in thinking towards integrated water assurance solutions. We have been working closely with some of our leading resource and energy customers to establish ways of de-risking their existing operations and new developments in response to current and emerging business-critical water resource uncertainties (water stress, competition, license to operate, costs, etc.). WorleyParsons brings a unique insight to water assurance by combining the expert knowledge of a world class water consultancy with WorleyParsons’ strong delivery platform. Our holistic approach to water supply, treatment, reuse and wastewater disposal delivers optimum outcomes that meet technical, regulatory, economic, environmental and corporate sustainability drivers. Lean Engineering As previously mentioned, UCOG development is not an engineering-driven business; it is a supply-chain driven business. The application of lean concepts and tools that simplify, standardize, modularize and replicate proven designs, concepts and activities takes the emphasis away from engineering and focuses on driving down overall project cost. In successful unconventional resource management programs, engineering is effectively “commoditized” to eliminate re-engineering and meet key project milestones.

>> Go to Contents WorleyParsons is a world leader in the design of modular industrial facilities and our experience has occurred in some of the world’s most hostile and remote locations. We optimize module size and density by combining our design capability with our Very Large Module (VLM) expertise, resulting in smaller, more economical module footprints and increased logistics benefits. We are quickly applying this legacy of expertise to the smaller, large volume modules in a UCOG project that can be easily assembled or ‘bolted together’ on site. Asset Management and Restoration Full-field program management covers all activities of the project lifecycle—from front-end planning and appraisal, through field depletion and decommissioning. Data management and field optimization expertise allows for the efficient management of long-lived assets. This ensures the raising of business performance through justin-time upgrades, and maintenance and support services—including on-going environmental and regulatory support—allowing for corporate and sustainability goals to be met. Using a suite of planning and management tools, our experienced professionals aptly manage and execute the transition from operations to decommissioning, including safe shutdown, environmental engineering, cost-effective care and maintenance, portfolio prioritization and sequencing, risk assessment and management, and environmental remediation. Global Potential According to the US Energy Information Administration, countries outside of the US including China (with technically recoverable shale gas reserves estimated at 1,115 trillion cubic feet), Argentina (reserves estimated at 805 trillion cubic feet) and Russia (75 billion barrels of shale oil) all

have the geological potential to experience their own shale booms. The conditions that fostered the North American shale revolution do not exist everywhere, however. While headway in terms of social and governmental acceptance is being made (the United Kingdom has lifted its 18-month moratorium on fracking) there continues to be an organized opposition to UCOG development in many parts of the world. Also, because mineral rights aren’t typically owned by private landowners in most countries, and tax policies on oil and gas profits vary, global UCOG success on the scale of North America and Australia may take a bit more time to realize. Despite this, the shale revolution is expected to have a more global reach in the next five to 10 years. As social, environmental and political elements of this sector are addressed, the expectation is that the relative pace of global development will accelerate. This is because the rest of the world will have the advantage of leveraging the technological advances, experience and lessons learned gained in the US, Canada and Australia to support their regional developments. WorleyParsons pioneered production-related designs for unconventional resource projects in western Canada more than 10 years ago. We subsequently refined those techniques in the coal seam methane fields of Queensland and are now applying them across the shale oil and gas plays of the United States. We’ve completed more than two million UCOG work hours worldwide utilizing and transferring our specialized expertise in lean delivery, as well as our portfolio of non-technical and technical capabilities across the globe. We intend to fully leverage this legacy and our advantages to significantly grow our market share in all major UCOG regions worldwide.

Excellence in Oman WorleyParsons' global capability supports the local delivery of the OOCEP Project in Oman

WorleyParsons’ diverse yet integrated hydrocarbons, power and infrastructure offering enables us to deliver easily-accessible global specialist support services to local projects through a single contracting entity. This is proving to be a winning combination for Oman Oil Company Exploration & Production (OOCEP).


HQ Magazine Global The Scale Awards of Shale

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In Oman, WorleyParsons has been working since 2010 to assist OOCEP with engineering services related to the development of the Block 60 concession area in western Oman. Block 60 - Abu Tabul is an onshore block located in one of the most remote and scenic desert areas of Oman, and is on the periphery of the Arabian Peninsula Empty Quarter—the largest sand desert in the world. Block 60 is a technically complex tight gas field characterized by high pressure and low flow wells, which has necessitated complex but cost-effective engineering design development by WorleyParsons. WorleyParsons’ engineering work commenced with the front-end engineering design (FEED) in 2011, and transitioned into detail design, procurement and construction manpower assistance. The project is currently in the construction phase, with OOCEP operations expected to commence with first gas and condensate export in 2014. The field is expected to expand through the initial development/production phase, and as additional wells are brought on-stream. WorleyParsons’ scope for this greenfield project includes gas production wellpad and gas gathering system engineering design, gas and condensate export and metering systems engineering design, and review and input to the gas processing plant, water treatment and other associated Block 60 construction contractors' package designs. The hyper-arid environment of Block 60 contains soft sabkha (salt flats) and sand dunes reaching heights up to 820 feet (250 meters) that have created challenges in completing a greenfield project of this type. WorleyParsons’ more than 20 years of experience completing engineering design projects in this remote region has provided us with an understanding of the local terrain as well as the challenges associated with this area.

During the initial three years of our relationship with OOCEP, WorleyParsons has proactively supported OOCEPs field development requirements, including the following work: • Electrical power distribution network engineering • Waste management facility engineering • Water treatment plant pre-treatment study • Environmental impact assessment • Master planning activities Block 60 – Abu Tabul is an example of the value WorleyParsons has delivered to OOCEP by implementing our unique breadth of knowledge and skills in hydrocarbons as well as other areas and this knowledge is being shared to local professionals. In fact, native Omani’s make up 23 percent of the project team, and they have been provided with both in-house and outside training and development over the course of the project. In working with OOCEP’s Discipline Engineering and Management Teams in OOCEP offices on this project, WorleyParsons has provided integrated, co-located teams—an advantage our customers are able to utilize to deliver their projects globally. Drawing on the advantages of WorleyParsons’ local/global capability, the development of Block 60 has become a truly international project, with approximately 5,000 man-hours delivered via workshare in more than five locations, including global specialist services for the following: • Gas processing plant engineering reviews (Perth) • Geographic information system (GIS) support (Abu Dhabi) • Material and corrosion support (Calgary) • Logistics assessment (London) • Reliability, availability and maintainability (RAM) study (Kuala Lumpur) For more information on WorleyParsons’ hydrocarbons capabilities, visit www. HQ Magazine Excellence in Oman 17

Regional Report WorleyParsons' operations in East Africa East Africa, one of the world’s poorest and leastdeveloped regions, has been tapped as a new frontier in energy due to recent major oil and gas finds. The area was previously almost completely without power due to its inadequate and poorlymaintained infrastructure. However, the substantial reserves discovered in Uganda, Kenya, Tanzania and Mozambique have set the stage for East Africa to awaken from its sleepy backwater status in the upstream industry—both onshore and offshore. WorleyParsons has addressed East Africa's growing industrialization prerequisites by focusing on its infrastructure, environmental and socio-economic needs, and is now moving into technical field development work. We completed the feasibility and FEED study on a 125km lube gas pipeline which is parallel to an existing 865km pipeline that stretches from Mozambique to Secunda, and have since been awarded the EPCM work on the project. In Tanzania, we were awarded the project management consulting (PMC) scope for Tanzanian Petroleum Development Corporation’s (TPDC’s) Tanzania Mnazi Bay and SongoSongo Natural Gas Processing Plant & Transportation Pipeline Project, which includes moving 784 million cubic feet of gas from Mtwara to Dar es Salam—where we have established a project office—via 542km of pipelines and two gas treatment plants. This project, which has received EPC support from two Chinese contractors, will provide energy for power generation and industrial usage that is paramount to meeting the rapid expansion planned for Tanzania. Many countries in Africa must import refined product to meet their enery needs. Uganda—a land-locked country currently importing through Kenya—is speculated to be considering the development of a refinery that would render them energy independent while also enabling them to export to neighboring countries. To service these and other land-locked nations, crude export pipelines will be an area of focus, as evidenced by the talk of a mega-pipeline that would link South Sudan, Uganda and Kenya.


HQ Magazine Regional Report

The scale of the offshore finds thus far—and their position close to gas-hungry Asian markets—is attracting a lot of attention from industry majors, many of which are evaluating the cost of constructing liquefied natural gas (LNG) trains in hopes that East Africa becomes a less expensive alternative to Australian LNG projects. WorleyParsons has had LNG offloading success in South Africa utilizing support from our teams in Singapore and Australia, and look to leverage this experience in East Africa. Our capability is backed by our office in Maputo and supported by INTECSEA—WorleyParsons’ subsea arm—which is currently delivering all architecture and subsea design for Anadarko offshore Mozambique. Success in East Africa will not be won based solely upon the technical ability to service projects—an intimate understanding of the cultural and sociopolitical landscape of each individual nation within the region is essential. WorleyParsons approaches this reality by localizing our business and have been working diligently to understand and respect the local legislation, taxation laws and regulatory processes of the governments within the region, an effort that has been successful with the support of our native African staff. In addition, we have also established ties with technical partners and international and national oil companies that are often subject to the direction given by their governments. Our commitment to this region is backed by our localization model, which promotes working in long-term relationships to establish local training and development programs instead of outsourcing work. And although even the most optimistic estimates do not predict production starting before 2018, we have already identified opportunities to share our knowledge and experience with local talent in Uganda and Tanzania. Despite the major offshore gas discoveries and promising onshore results, East Africa remains vastly unexplored. While it will take years to learn of the region’s full potential and many challenges lie ahead, WorleyParsons is very excited about the opportunities in East Africa, and is looking to leverage the work we’ve done in Mozambique, Tanzania and Uganda moving forward.

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Project Report Environmental Impact Statement for the Australia Pacific LNG (APLNG) Project The Australia Pacific LNG (APLNG) Project (a joint venture between Origin and ConocoPhillips) is proposed to be the biggest producer of coal seam gas (CSG) in Australia. Once developed, the project will see an increase in domestic gas production and become a long-term gas processing and export industry generating significant benefits at the regional, state and national levels. In order to obtain state government project development approvals, APLNG was required to develop an environmental impact statement (EIS) which includes a social impact assessment (SIA) and social impact management plan (SIMP). As public documents, the SIA and SIMP needed to demonstrate that APLNG could reasonably manage all potential negative impacts and maximize opportunities arising as a result of the project. The activities and results below represent WorleyParsons' contribution to increasing local skills and boosting regional economies.

Key Achievements Despite key challenges encountered, including community consultation, fatigue and working in an environment of four major CSG/LNG projects, positive feedback was received for engagement effort from government, lobby groups and community stakeholders: • Commended by the Queensland (QLD) Department of Infrastructure and Planning (DIP) for delivering one of the first SIMP’s under draft QLD legislations • DIP recommends the SIMP developed by WorleyParsons as an example of “good industry practice” • SIMP Approval received 20th July 2012 "We have received consistently

positive feedback from the Queensland government in relation Social Impact Management: to the SIMP documents, supporting • The SIMP strategies for local content, strategies and the approach APLNG workforce and training, housing and accommodation, community investment, engagement (indigenous has taken in mitigating social impacts. and grievance management), and health and safety

• Developed the SIMP monitoring and reporting programs and tools Stakeholder Engagement: • Developed several tailored engagement plans and communication materials (media, fact sheets, web content, etc.)

As WorleyParsons has been involved and supported us from the beginning of the SIMP development, a large portion of the feedback we are getting is credit to the talented consultants that have helped us." - Daniel Holm, Project Manager Social, Origin

• Implemented engagement activities and engaged with more than 6,000 people during the approvals process • Established and staffed an educational community center in Gladstone • Continued engagement assistance through construction

For more information on our Hydrocarbons capability, visit www.

HQ Magazine Project Report 19

Upcoming Events Join us at these 2014 industry events to learn more about our specialist Arctic, LNG and offshore capabilities.


February 10-12, 2014 Houston, USA

Pavilion 3, Booth #218 Technical Presentations: Monday, February 10 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: 3:40 p.m.:

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

Tuesday, February 11 Session 26: Brownfield: Debottlenecking for Safety Extends the Operational Lifetime 2:50 p.m.: "Optimized Structural Integrity Management System and Inspection Program for a Converted FPSO"

—A. Nezamian, J. Altmann, WorleyParsons

Wednesday, February 12 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

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HQ Magazine Upcoming Events

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GASTECH 2014 March 24-27, 2014


Hall Stand: L80 Tuesday, March 25 Commercial Stream: Unconventional Gas: Developing the Potential 4:50 p.m.: "Quenching the Flares: Making a Case for Mini-LNG within North America"

—Paul Sullivan, VP & Global Director - LNG & FLNG, WorleyParsons & Nancy Ballout, Senior Technical Consultant - LNG, WorleyParsons

Thursday, March 27 Technical Stream: Contracting & Fabrication: The Greatest Challenges 9:00 a.m.: "Chairman's Welcome" —Paul Sullivan, VP & Global Director - LNG & FLNG, WorleyParsons


March 25-28, 2014 Kuala Lumpur

Hall 1&2, Booth E201 Tuesday, March 25 Technical Session 6: Asset Integrity Design_Room 410 3:30 p.m.: "Fatigue Reliability RBI Program for Requalification, Life Extension and Integrity Management of Offshore Structure" — E.F. Clarke, WorleyParsons 3:30 p.m.:

"Cathodic Protection Assessment by Means of Multiple Calibration Techniques for Integrity Management and Life Extension of Offshore Facilities"

—J. Sucharov, A. Nezamian and J. Altmann, WorleyParsons

Wednesday, March 26 Technical Session 9: Marginal Fields Development_Room 406/407 2:00 p.m.: "Subsea Development of Marginal Deepwater Fields" —J. Samad, INTECSEA Thursday, March 27 Technical Session 18: Seabed Geohazards_Room 405 8:30 a.m.: "Spatial AHP Enables Highly Effective Pipeline Routing Evaluations"

— C. N. White, A. Palejwala and K. Bacon, iNTECSEA and K. Mower, WorleyParsons

Technical Session 20: Riser Integrity Design and Monitoring_Room 408/409 8:30 a.m.: "Large Scale Nonlinear Dynamic Simulations of Flexible Riser Systems with Detailed Models" — A. Majed and P.A. Cooper, INTECSEA Technical Session 23: FLNG_Room 403/404 10:30 a.m.: "Concept Evaluation of Concrete Floating Liquefied Natural Gas (FLNG)"

— A. Nezamian and H. Kelle, WorleyParsons

Technical Session 30: Materials Technology_Room 405 3:30 p.m.: "Cra Strength Contribution and Investigation of Cra Liner Thermal Expansion Impacts Pipeline Design" — M. Zalianekas, A.R. Low and S. Don, INTECSEA Technical Session 31: Deepwater Platforms_Room 408/409 3:30 p.m.: "Design and Analysis of Cellular Tendon for TLPs in Ultra Deepwater Fields Offshore Asia" — J. Yu, INTECSEA Thursday, March 27 Technical Session 50: Offshore Pipelines III_Room 401/402 2:00 p.m.: "Design and Construction Challenges of Lan Do 13Cr Flowline System"

— S. M. Tuck, INTECSEA

HQ Magazine Upcoming Events 21

Office Intel Highlights from our locations around the world Subsea Energy Australia recognizes two INTECSEA engineers

WorleyParsons named Top 100 Employer in Canada for 2014

INTECSEA’s Technical Advisor in Advanced Engineering, Dr. Alastair Walker, and Riser Engineer, Chris Madeley, have been named the 2013 recipients of the Special Recognition and Emerging Talent Awards, respectively, by Subsea Energy Australia (SEA).

Mediacorp Canada (and its subsidiary Eluta. ca) has named WorleyParsons one of the Top 100 Employers in Canada for 2014.

Dr. Walker and Madeley accepted their awards at the Annual SEA Business Awards Dinner, which was recently held in Perth. The awards recognize individuals who display outstanding technical and commercial ability, and demonstrate commitment to the continued development of the subsea industry. For Dr. Walker, the Special Recognition Award is an acknowledgement of his extensive experience and more than 40 years of dedication to the subsea industry (both industrial and academic). Dr. Walker joined INTECSEA in 2007, and has significantly contributed to the development of design methods for subsea pipelines in areas such as upheaval buckling, strain-based design, assessment of limit state design for HPHT and span assessment. He has also published more than 130 technical papers relating to subsea pipelines. Madeley, whose outstanding ability to bring new and unique ideas to a number of software tools within INTECSEA, has also been recognized in the Emerging Talent Award category. He joined INTECSEA’s Graduate Program in 2011, and has been actively involved in the improvements of TECTOOLS using his unique background in mechanical engineering, scientific programming and numerical optimization. Commenting on the awards, Bernard Mackin, senior vice president for INTECSEA in Australia and New Zealand, said, “This recognition highlights the breadth and diversity of talent within our workforce, from one of our most experienced and talented professionals to a young emerging talent who is already demonstrating his commitment to the industry. I would like to congratulate Dr. Walker and Madeley on their significant achievements,” he added. INTECSEA is an active corporate member and sponsor of SEA. For more information on SEA, visit


HQ Magazine Office Intel

An estimated 3,250 companies were considered to be named one of Canada’s Top 100 Employers. These companies span the spectrum of various industries in both the public and private sectors. Companies were reviewed by a blue-ribbon academic advisory board drawn from universities across Canada. The term ‘Top 100 Employer’ is awarded based on best practices in recruitment, engagement and retention. The advisory board compared WorleyParsons to other organizations in our field to determine which offers the most progressive and forward-thinking programs. For 2013, the list included organizations such as Fairmont Resorts & Hotels, Shaw Communications and WestJet, as well as companies for whom we deliver projects such as Enbridge and Shell. The list of winners is not ranked. According to Mediacorp, WorleyParsons stands out because of our ongoing employee development with in-house apprenticeships and skilled trades programs, formal mentoring, and a variety of in-house and online training programs. Our commitment to such programs is a direct result of the continued feedback we receive from our employees—both formally and informally— through our annual employee engagement survey. This commitment is also in our support of the Graduate Development Program, in which new graduates are exposed to a variety of skills and experiences—both domestically and internationally—to grow their careers with the tools our global organization has to offer. We also stood out because we offer academic scholarships for children of employees who attend post-secondary institutions. Annually, WorleyParsons offers two scholarships for children pursuing an engineering discipline and two scholarships for children pursuing a degree in an industry that complements the engineering industry, such as information technology, human resources and more. As one of Canada’s Top 100 Employers for 2014, WorleyParsons will be featured as a 'Top Employer' on Mediacorp’s subsidiary site, one of the leading recruitment sites in Canada.

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Recent Appointments New additions and changes to our Hydrocarbons team Dr. Dorel Iosif Senior Vice President— Hydrocarbons Select and Consulting Practices As the WorleyParsons structure moves towards developing consultingdriven relationships with our customers, it is appropriate that we reflect this in the hydrocarbons customer sector group (CSG) by appointing Dr. Dorel Iosif to lead the combined Hydrocarbons Select and Consulting Practices Group. Dr. Iosif has successfully led the Hydrocarbons Consulting Practices and has recently been instrumental in setting up the new Enhanced Field Development Planning Consultancy. Combining Select with Consulting Practices will allow WorleyParsons to capture the available synergies and offer our customers more complete and seamless early phase solutions. Dr. Iosif re-joined WorleyParsons in 2010 after a 16-year break, during which he worked in engineering consulting. He has more than 25 years of professional experience, starting as a research scientist with BHP Billiton.

Chris Mann Director, Improve Program Development Chris Mann has been with WorleyParsons for 10 years with roles as vice president, business development for Eastern Canada Operations and currently as vice president, hydrocarbons customer sector group (CSG) director for the United States and Caribbean (USAC). Mann has more than 20 years of engineering and construction business development/customer relationship management experience across the power, mining and oil & gas sectors. In his new role, He will be tasked with winning and delivering new Improve relationships, helping build strong customer connections and enhancing overall value communication with our key global Improve customers. Mann will transition from his current assignment until January 1, 2014, at which time his appointment will be effective.

He has held various senior positions in Australia, the Middle East and the US. In the latter years, his career evolved toward business strategy, M&A/valuations and organizational design with a focus on developing, managing and evaluating viable opportunities for broadening income streams through organic and inorganic growth, partnerships and joint ventures.

HQ Magazine Recent Appointments 23

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


Canada Mike King Senior Vice President


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


Europe and Sub-Saharan Africa Jim Osborn Senior Vice President


Australia and New Zealand Scott Hughey Senior Vice President


Subsectors and Business Lines Chris Mole Senior Vice President

Local Office Global Hub


HQmagazine Hydrocarbons Quarterly

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HQ Magazine_Q2 FY2014  
HQ Magazine_Q2 FY2014  

Welcome to the second edition of HQ Magazine in FY2014. Read on for updates on our hydrocarbons business around the world.