Hydrocarbons Arctic and Cold Climate capability and experience brochure | WorleyParsons

Arctic & Cold Climate Capability & Experience

Integrated Arctic solutions WorleyParsons Group offers customers a single integrated project delivery service, from wellhead to market, for the most challenging offshore Arctic developments. Our comprehensive global footprint enables us to provide experience and knowledge from cold climate projects around the world for our customers in local project delivery.

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Arctic & Cold Climate WorleyParsons and INTECSEA are world leaders in concept selection, design and construction of oil and gas production facilities located in remote, hostile environments.

Cold climate environments pose unique challenges that must be addressed in all phases of the asset lifecycle, from evaluation studies and concept and technology selection, through front-end engineering design (FEED), detailed engineering, procurement and construction management. Succeeding in the Arctic requires a comprehensive understanding of these challenges as they relate to engineering and design, construction, operation and safety considerations.

Our knowledge and EPCM capability in the Arctic has evolved over more than 65 years of pioneering cold climate programs. Today, WorleyParsons and INTECSEA possess unparalleled concept-to-completion expertise, and bring first-of-a-kind solutions to our customers all over the world to ensure optimal returns on investment.

Risk mitigation begins in the Select phase, where decisions have the greatest impact on business outcomes. In Deliver, unique design aspects for Arctic conditions include analysis of the potential effects of Arctic-specific environmental loadings (ice scour, strudel current scour, permafrost), and the effective use of limit state design for extreme loading conditions. Strategies such as modularization and workshare are utilized to reduce cost and minimize schedule.

In the Improve phase we build synergies with our customers through longterm relationship-based alliances. Innovation results from collaboration between WorleyParsons and our customers and is necessary in the continuing development of Arctic oil and gas fields.

From feasibility studies to facility operations, from onshore processing to subsea pipelines, offshore topsides and LNG, WorleyParsons has the resources and capabilities to deliver Arctic and cold climate projects in any phase.

WorleyParsons Project Phases

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Capability overview

Arctic Modularization

Logistics and Installation

Mega-Project Delivery

A modular approach to projects in remote environments has proven to reduce overall cost and mitigate on-site risk.

WorleyParsons has over 65 years of experience in Arctic modularization of both sealift and truckable modules including interface management. Our unique expertise combines cost and schedule optimization for modular build based on size and weight while considering engineering, procurement, transportation and installation time frames.

The construction season in remote and cold climate locations can be as brief as ten weeks.

WorleyParsons has logistics and installation experience on remote sites countering the challenges of frozen sea, ice-bound ports and permafrost for large float-overs.

Our key differentiator is the ability to achieve overall schedule improvements through valuebased planning and management.

WorleyParsons has an excellent track record in mega-project delivery and major field development through our FEED, EPCM and PMC services. In the last five years, WorleyParsons has successfully delivered mega-projects in the Arctic with a total installed cost value of over US$20 billion. We deliver in remote locations and operations, as demonstrated on our signature mega-projects in Sakhalin Island, the Alaskan North Slope, offshore Canada and land-locked Kazakhstan.

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Local Engagement

Ice and Permafrost Engineering

Deep local knowledge combined with global capability is essential to succeed in delivering and executing projects in cold regions.

Through our global footprint and location-based businesses our customers benefit from our extensive experience in permits, regulatory affairs, localization and local community involvement.

Constant ice is a significant challenge of Arctic engineering.

At WorleyParsons, we have developed well-defined ice design criteria for all structures, pipelines and foundations for onshore and offshore applications. We have experience in ice modelling and impact analysis for weight loading and ice scour movement predictions. Through INTECSEA, WorleyParsons has completed and executed innovative foundations for permafrost conditions.

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Capability overview, cont’d.

Onshore Development

Offshore Development

Our onshore experience covers Russia, Kazakhstan, Canada and Alaska. We have developed a niche capability in onshore gas processing and toxic gas reinjection at high pressures. Our global leadership in this area is based on over 5000 projects for Arctic onshore in both greenfield and brownfield developments.

WorleyParsons has delivered topsides solutions in some of the world’s most challenging geographies. Our market leadership in cold climate topsides development combines our 50 year history of engineering for fixed and floating production facilities with our Arctic expertise. WorleyParsons has been involved in many of the Arctic’s currently operating offshore projects, including some on Sakhalin Island and the Alaskan North Slope.

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Subsea Production and Pipelines Unique pipeline design aspects for Arctic conditions include analysis of the potential effects of Arctic-specific environmental loadings, and the effective use of limit state design for extreme conditions. Evaluation of these challenging conditions and use of advanced subsea system design philosophies have been successfully used by INTECSEA, which has executed the only offshore oil pipeline in the United States Arctic and completed recent projects with flowline bundles to manage the considerable thermal challenges.

Environment and Society

Infrastructure

Environmental management and social responsibility is a key issue for the Arctic sector.

WorleyParsons is able to provide customers a complete approach for unique interfaces with natural, physical, social, cultural, regulatory and built environments - wherever the asset is developed and operated.

Our consultants help our customers to effectively engage with communities, site, develop and operate their assets with a sensitivity to environmental values, successfully gain project approvals, and seek opportunities to continually improve the environmental performance of operations.

Infrastructure challenges may pose significant threats to a project’s success. WorleyParsons’ Infrastructure sector offers complete solutions for resource, energy and urban markets.

The service offering covers environmental and restoration services, development of water, rail and port assets, power generation (across coal, gas, renewable and nuclear) and transmission. As we do for our hydrocarbons activities, WorleyParsons supports our customers across the asset lifecycle, from pre-feasibility, delivery, through to asset management, operation and maintenance.

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Defining the challenges By addressing the risks and challenges of the Arctic and cold climate regions, WorleyParsons is able to offer optimal strategic development plans, scenario analysis and cost estimation to help our customers choose the best development options for their assets.

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Select Arctic & Cold Climate Decisions made during the initial stages of a project have the greatest impact on the ultimate business outcome. WorleyParsons’ strategic front-end planning skills, integrated with our project execution capabilities and technological neutrality, provide customers with solutions that reduce risk and optimize results.

Cold climate projects are among the riskiest projects in the industry, especially as owners pursue resources in the deep waters of the Arctic Circle. It’s important to mitigate these risks in the earliest stages of a project through the identification and evaluation of project options, and with a partner that has a strong history of project execution.

Leveraging our extensive experience in total project delivery, asset operation and industry best practice, WorleyParsons’ Select business line provides preFEED services to asset owners, operators and investors. Our specialists have a thorough understanding of the Arctic business value chain including market analysis, financial modelling, technology selection, greenfield site selection, approvals management, new plant configuration, existing plant optimizations and the development of the detailed project realization methodologies.

We also offer investment advice with accurate and reliable development cost and schedule services. Key decision support packages are developed to decrease risk and provide the economic basis to attain project sanction.

Select encompasses both greenfield and brownfield developments. Our greenfield services include strategic planning, opportunity evaluation, and site, concept, and technology selection for major and marginal new field opportunities. We offer brownfield optimization services which deliver solutions such as cost effective increases in production and whole-of-life return from existing facilities.

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Deliver Arctic & Cold Climate Arctic reserves are now more accessible than ever for effective hydrocarbons facilities, but, like every new market, the Arctic brings unique risks in the form of hostile weather conditions and remote location execution making Arctic delivery an enormous challenge.

WorleyParsons leverages our extensive experience and capability in Arctic project delivery to mitigate risk and increase delivery certainty for our customers. Our more than 65 years of experience on over 5,000 projects for onshore and offshore developments extends from the unexplored eastern territories of Russia, Norway, Kazakhstan and Greenland to the more regulated western territories of northern Canada and Alaska. This experience provides a foundation of knowledge accumulated from around the world to deliver our customers’ project safely and efficiently, allowing owners and producers to focus on revenue-producing activities.

Modularization & Logistics By nature, cold climate projects are in remote locations where there are challenges associated with construction access, logistics and a shortage of local skilled labor.

WorleyParsons promotes a modular approach in these situations, which has proven to significantly reduce engineering manhours, materials cost, schedule, industrial relations risks and environmental impact.

WorleyParsons is a recognized global leader in modularization in all sectors, with experience spanning from the North Slope of Alaska to the Caspian region and the remote North West Shelf of Australia. Combined with our Arctic knowledge, this ensures projects are delivered at the optimal cost and schedule.

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Increased outcome certainty Our global footprint enables us to employ expertise and knowledge in EPCM from around the world. Our customers have access to our global best practices and deep local knowledge, while also benefitting from our workshare system which leverages our high-value project delivery centers to reduce costs and increase project outcome certainty. This proven workshare methodology realizes the benefits of multi-office execution, delivering the strongest team, best experience and most value to our customers’ projects.

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Previous performance Long-term relationships Using the knowledge accumulated from over 275 international alliances or long-term contracts, we have developed a culture and a suite of unique tools, systems and delivery methodologies that incorporate industry best practice to drive innovation, efficiency and performance.

Add Caption: Describe the image and relevance to capability

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Improve Arctic & Cold Climate WorleyParsons has been involved in several long-term relationships in the Arctic for operational excellence, asset management and production enhancement. Our Improve projects are aimed at maintaining the integrity of the operating asset and creating business improvements to operate more effectively.

WorleyParsons’ Improve business line specializes in providing long-term, performance based asset management services including brownfield projects and delivery of ongoing project portfolios. We have been involved in business improvement and operations and maintenance support to ensure the integrity of numerous Arctic projects.

We add value to our customers’ projects by leveraging our local knowledge and capabilities with global resources and systems. Through our unique business model we are able to increase the breadth and depth of capabilities brought to each project, ensuring long-term sustainability for each investment.

Master Engineering Services Contract Customer bp exploration alaska Location north slope, alaska phase

WorleyParsons has a long-term alliance with BP Exploration Alaska to provide engineering services to support their projects and operations groups. The scope of work includes engineering design, drafting and documentation support; construction support and as-built; project coordination; procurement support; and project management services for all BP Exploration Alaska’s North Slope assets. Work has been executed both locally and through workshare, utilizing expertise from the Canadian offices in Sarnia, Edmonton, and Calgary as well as Arcadia, California. Together BP and WorleyParsons have achieved continuous 2 million safe hours worked while reducing engineering costs through the relocation of staff from the North Slope to Anchorage.

Our relationship-based Improve alliances promote innovation, efficiency and performance.

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Local project delivery Northstar Pipeline Project Alaska (pg. 17)

This is the world’s first offshore Arctic project to transport oil through a trenched subsea pipeline. The pipeline design utilized limit state strain criteria to meet the challenges of an Arctic environment and marginal field economics.

MacKenzie Gas Pipeline Project Canada (pg 16)

The MacKenzie Gas Pipeline project consists of a 1,221 km long, 762 mm diameter gas pipeline and a 470 km long, 323.9 mm Natural Gas Liquids (NGL) pipeline. WorleyParsons was contracted to undertake conceptual engineering, pre-FEED, FEED, engineering and licensing services for this mega-project.

Hebron Topsides Development Canada (pg. 21)

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Hebron is a heavy oil field estimated to have 400-700 million barrels of recoverable resources. WorleyParsons has provided FEED and detailed services for ExxonMobil’s Hebron platform topsides.

Global experience Sakhalin-1 Arkutun-Dagi Russia (pg. 18)

ExxonMobil Neftegas Limited, which is part of ExxonMobil Global Services Company, has contracted WorleyParsons to provide FEED, detail engineering and procurement services for the topsides of the Sakhalin-1 ArkutunDagi drilling and production platform.

Shtokman Phase 2 & 3 Russia (pg. 19)

Through INTECSEA, WorleyParsons performed FEED for the subsea production systems with tie-backs and flexible risers for phase 2 & 3 of the Shtokman Field Development’s floating production facilities.

Kashagan East Field Development Kazakhstan (pg. 19) WorleyParsons provided concept, pre-FEED, FEED, detailed design engineering and Project Management Contractor (PMC) services for the Kashagan East Field Development Experimental Program.

WorleyParsons Arctic & Cold Climate Project

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Proven performance

Goliat Riser and Flowline

MacKenzie Gas Pipeline Project

Second Generation / Sour Gas Injection (SGI) Project

Customer eni norge exploration & production as Location barents sea, norway

Customer imperial oil Location north west territories, Canada

Customer Tengizchevroil Location Onshore Kazakhstan

ENI Norge’s Goliat field is located 85 km offshore on the Barents Sea. Water depth at Goliat ranges from 325 m to 390 m. The Goliat field will be developed using subsea templates tied-back to a new Floating Production, Storage and Offloading (FPSO) unit.

The MacKenzie Gas Pipeline project consists of a 1221 km long, 762 mm diameter gas pipeline and a 470 km long, 323.9 mm NGL pipeline.

WorleyParsons was contracted to undertake conceptual engineering, pre-FEED, FEED, engineering and licensing services for this mega-project, which has a total installed cost of US$13 billion. In addition, the scope of work included cathodic protection design, cost estimation, external coating selection, corrosion management, inspection services for the long distance pipeline operation with a high pressure chilled gas stream.

The objective of the SGI project is to expand oil and gas handling facilities located on the Caspian Sea from 13.5 to 25 MM tonnes per year. WorleyParsons was contracted for conceptual engineering, pre-FEED, FEED and EPCM services. The early phase of the project operated under a rigid methodology of creating innovative ideas. The project site has an extremely harsh climate with temperatures varying from -40°C to +40°C, but the biggest challenge faced on the project was the delivery of over 100 large modular equipment items from around the world. Shallow draft vessels and barges were used to transport modules through the Volga Don River during the open weather window from April to November.

A total of eight subsea templates are spread over five field site locations. The FPSO riser system will comprise 10 base case flexible risers and umbilicals, plus 10 spares. INTECSEA’s scope of work included concept selection for riser and flowlines, lay-out development, design of riser systems, on-bottom flowlines, gas export pipeline, direct electrical heating system, development of installation methodology, project schedule estimate and cost estimate.

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Northstar Pipeline Project Customer bp exploration alaska Location alaska phase

The BPXA Northstar Oil Field is located at a depth of 37 feet below the water, six miles off the Alaskan Beaufort Sea coast. It was developed by expanding the exploratory gravel island to accommodate wells, production facilities and living quarters. Produced oil is exported through a 10 inch pipeline to the Trans Alaska Pipeline System. A 10 inch gas pipeline also connects Northstar to existing Prudhoe Bay facilities.

This is the world’s first offshore Arctic project to transport oil through a trenched subsea pipeline. The pipeline design utilized limit state strain criteria to meet the challenges of an Arctic environment and marginal field economics. INTECSEA and eight other engineering companies and construction contractors participated in an alliance agreement with BP.

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Sakhalin-1 Arkutun-Dagi Field Development Customer ExxonMobil Neftegas Limited Location Offshore Sakhalin Island, Russia Phases

ExxonMobil Neftegas Limited contracted WorleyParsons to provide FEED, detail engineering and procurement services for the topsides of the Sakhalin-1 Arkutun-Dagi Drilling and Production Platform. The Arkutun-Dagi field is off the coast of Sakhalin Island and is being developed using a gravity based structure to support an integrated deck containing all drilling and processing facilities and living quarters. The integrated topsides will be installed using a float-over, which at approximately 34,000 tonnes is one of the world’s largest open water float-overs.

Meeting the demands of a 34,000 tonne float-over is a significant challenge. However, the work undertaken by WorleyParsons in the past gave ExxonMobil confidence in the depth of our experience and understanding necessary to meet the challenge – particularly with regard to our detailed knowledge of fabrication capabilities and the demands imposed during the transportation of extremely large decks from their fabrication to installation locations.

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Proven performance

Point Thomson Initial Production System

Kashagan East Field Development Program

Shtokman Phase 2 & 3

Customer ExxonMobil Location north slope, Alaska

Customer agip kco Location caspian sea, kazakhstan

Customer gazprom Location barents sea, russia

WorleyParsons provided services for phase one of the EPC for ExxonMobil’s Point Thomson Initial Production System located along the Beaufort Sea on the North Slope of Alaska, approximately 60 miles east of Prudhoe Bay. The project includes gas processing facilities producing 10,000 barrels per day of gas condensate, infrastructure and an export pipeline.

WorleyParsons provided concept, pre-FEED, FEED, detailed design engineering and PMC services for Agip KCO’s Kashagan East Field Development Experimental Program. The development comprised a combination of offshore and onshore processing facilities with associated offsites and utilities, trunklines and export pipelines. Offshore scope included artificial islands, modularized ancillary equipment and modularized barge-based process and utilities plant.

Key challenges included harsh climate, high hydrogen sulphide content, very high reservoir pressure (780 bar), shallow water (4-6 m) and environmental sensitivities.

This project site is characterized by harsh environmental conditions like sea ice, icebergs, winter darkness and severe Arctic storms. Through INTECSEA, WorleyParsons performed FEED for the subsea production systems with tiebacks and flexible risers for the floating production facilities.

The selected concept was based upon a ship-shape FPSO capable of withstanding the conditions that may occur at the site, and topsides capable of processing 70 million cubic meters per day of gas plus associated liquids.

Produced gas will be conditioned on board the floating topsides and transported through subsea pipelines to the mainland.

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Proven performance

Karachaganak Field Development

Zhambay Block Visualization Study

Rosebank Development

Customer Karachaganak Petroleum

Operating BV Location onshore kazakhstan

Customer repsol exploration Location north caspian sea, kazakhstan

Customer chevron north sea ltd Location west of shetlands, uk

Agip, Lukoil, Texaco, and British Gas signed a production sharing agreement with Kazakhstan, and created Karachaganak Petroleum Operating BV in 1997, a wholly owned company for the specific development of the Karachaganak field. The scope was to construct new facilities and expand existing facilities to allow the export of six million tonnes per year of sweetened stabilized condensate to the Caspian Pipeline Consortium by the middle of 2003.

WorleyParsons was awarded the construction management support services contract in relation to the above, integrated into the customer’s organization.

The work was executed in our UK and Kazakhstan offices.

WorleyParsons was contracted by Repsol to provide a visualization study for drilling operations as part of the Edil North and Karabulak Development Plan.

The severe winter climatic conditions coupled with the very shallow water depth in the Zhambay block makes the use of conventional onshore and offshore equipment difficult.

WorleyParsons team evaluated several alternative facility concepts, with alternative subsea architectures and screened these options for the severe winter conditions, as well as assessing the restrictions and protection of the local eco-system.

Rosebank Field is located in approximately 1,130 meters of water northwest of the Shetland Islands in a very harsh environment. WorleyParsons Group completed an extensive pre-FEED of the entire facilities for Rosebank including topside, hull, marine, mooring, subsea and gas export systems. A class 2 cost estimate and level 2 EPCI schedule were also developed to support Chevron approvals.

WorleyParsons developed a United Kingdom compliant, fully integrated 3D FPSO model using PDMS showing details of the topside’s process, utilities, hull, marine turret, mooring and offloading systems. We are currently undertaking the FEED of the FPSO, complete with topside, mooring and riser systems and associated subsea systems.

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Hebron Topsides Development Customer ExxonMobil Location Offshore Newfoundland, Canada phase

WorleyParsons has provided front-end engineering design work for ExxonMobil’s Hebron platform topsides. Hebron is a heavy oil field estimated to have 400-700 million barrels of recoverable resource. The contract includes an option to provide detailed engineering, procurement and construction services. FEED work was completed in 2011 with first oil expected in 2016. The Hebron field will be developed using a standalone concrete gravity-based system (GBS) which sits on the seabed. The GBS will consist of a reinforced concrete structure designed to withstand sea ice, icebergs, and meteorological/oceanographic conditions in the area. The deck will be designed to handle between 120,000 and 175,000 barrels per day of crude while its liquids handling capacity could be as high as 315,000 barrels per day due to the high volumes of produced water. Hebron will be the largest open water float-over in the world.

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Corporate overview WorleyParsons is a leading global provider of professional services to the resources and energy sectors, and the complex process industries.

We cover the full asset spectrum, both in size and lifecycle, from the creation of new assets, to services that sustain and improve operating assets Our business has been built by working closely with our customers through long-term relationships, anticipating their needs, and delivering inventive solutions through streamlined, proprietary project delivery systems. Strong growth continues to characterise our performance both through organic development and through strategic acquisition as we strive to provide tailored services wherever our customers need us.

HYDROCARBONS INFRASTRUCTURE MINERALS, METALS & CHEMICALS

EcoNomics™ provides our customers with the systems, technologies and expertise to optimise and balance financial, social, and environmental outcomes, improving sustainability performance while enhancing profit and long-term viability.

WorleyParsons’ vision is to be a leader in sustainability by helping our customers capture new markets and business opportunities created by the new energy economy.

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Zero Harm is our corporate vision for health, safety and the environment (HSE).

We are committed to our vision and apply it to all operations, at all times, in all locations, and at all levels of responsibility. We will actively work to align our expectations and behaviors to achieve Zero Harm in our dedication to continuous improvement. These expectations are reflected in our integrity management framework, OneWay™, and linked to our global systems and procedures.

Supporting capabilities Floating Production Systems From our extensive experience with 100+ floating production systems projects including , FSOs , FPSOs, TLPs, SPARs, semi-submersibles, floating LNG regasification and floating LNG production we can offer our customers a truly concept-neutral approach within the early selection phase.

Heavy Oil and Oil Sands As the world’s oil resource is getting heavier, producers worldwide must find production solutions for heavy oil and in-situ bitumen production. WorleyParsons is a leader in this area with nearly 40 years of experience.

LNG WorleyParsons’ track record in LNG and FLNG production and LNG regasification extends from opportunity evaluation studies and concept and technology selection, through front end engineering design (FEED), and detailed engineering, procurement and construction management (EPCM) for both greenfield and brownfield LNG developments.

Onshore Developments With much of the world’s easy to produce oil already recovered, WorleyParsons increasingly assists customers on projects employing a range of secondary and tertiary Enhanced Recovery (ER) techniques.

Pipeline Systems WorleyParsons’ dedicated Pipeline and Terminals group operates from centers of expertise in onshore pipelines, compressor and metering stations, geomatics and SCADA systems.

Offshore Topsides WorleyParsons has designed offshore topsides ranging from less than 100 tonnes to large integrated topsides with float-over weights exceeding 35,000 tonnes. Our floating structures experience (Semi’s, Spars, TLPs, FPSOs and more recently FLNG systems) includes topside tonnages in excess of 50,000 tonnes per facility.

Petrochemicals With expertise gained over 600 projects in over 30 countries, our experience covers the manufacture or processing of over 65 types of chemicals and petrochemicals.

Refining With over 55 years of experience we have completed 23 grassroots refineries including supporting utility systems, product terminals and offsite facilities ranging in capacity form 5,600 bpd to 272,000 bpd.

Sulphur Technology Our sulphur recovery units account for approximately 60 percent of the world’s production of recovered sulphur. These facilities include the world’s largest singletrain units and apply processes developed and patented by WorleyParsons.

Unconventional Oil and Gas Our Full Field Program Management offering develops solutions to the unique logistical challenges associated with tight gas, shale gas and coal seam methane projects across the globe.

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Arctic & cold climate Capability & Experience

www.worleyparsons.com www.intecsea.com

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