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Kazakhstan - Successful Local Delivery Shtokman Development - providing long term energy security for Russia, Europe and international markets
The Content Published by WorleyParsons Level 12, 333 Collins Street Melbourne VIC 3000 Australia
Phil Toohey Global Director, Marketing and Research
Arctic The Last Frontier
Produced by WorleyParsons Marketing and Research Group, Australia
40 years of leadership in innovative technical design and program execution
Contact Information www.worleyparsons.com firstname.lastname@example.org
p.10 Shtokman Development WorleyParsons and our deep water specialists INTECSEA, are providing front end engineering design services to Shtokman Phase 2 and 3, one of the world’s largest natural gas reserves.
p.12 Kazakhstan - Successful Local Delivery Fourteen years on, WorleyParsons can now lay claim to three major project locations as well as chalking up several major engineering ‘firsts’ in the region.
Issue 2 Q2, August 2011
hqmagazine hydrocarbons quarterly
Front cover image: Sakhalin II Onshore Processing Facility Photos supplied by: Gazprom and ExxonMobil. All reasonable efforts have been made to trace copyright holders.
p.3 From Brian’s Desk
p.7 Safety Roundup
A welcome to our readers to the second issue of hydrocarbons quarterly (hq) magazine
p.4 Spotlight on... JB McNeil
JB McNeil shares his history and insight into the current Hydrocarbons industry
p.6 Focus on Zero Harm
2011 WorleyParsons UAE Strategic HSE Partnership Forum in Oman transforming a reactive safety culture
Europe. Singapore, Kingdom of Saudi Arabia, USA, Nigeria and Oman
p.8 Global Awards
Recent customer project and contract awards
p.18 Office Intel News from offices and recent opportunities
From Brian’s Desk Welcome to the second edition of WorleyParsons hq magazine. Across the world we are observing a renewed level of investment in both the upstream and downstream markets. Interestingly, the drivers for this investment cycle differ depending on the location. While the emerging world is seeking to increase capacity and investing in skill development, the developed world is heavily focused on optimizing asset performance. We are fortunate as a company to serve both of these needs exceptionally well.
This edition of HQ provides an overview of our efforts in Kazakhstan, across the Arctic and the exciting challenges associated with Gazprom’s Shtokman project in the Russia’s Barents Sea.
The one common factor across all classifications – upstream, downstream, emerging, developed - is the importance of striving for Zero Harm at all levels within our business. We have recently reconfirmed to all staff our corporate commitment prohibiting the use of mobile telecommunications while driving. Our management teams across the operations are implementing programs that increase awareness of this issue and ensure optimal behaviors are institutionalized. I am delighted to provide an excerpt of an interview I did with our Board Member, JB McNeil. JB is a legend within the Hydrocarbons industry and his 34 year contribution to ExxonMobil’s global upstream business has left an indelible imprint on the leading oil and gas company. His insights and advice have been influential for both WorleyParsons’ corporate and Hydrocarbons strategy. We hope you enjoy this edition and, as always, I welcome any feedback. Please stay safe.
Brian Evans Managing Director Hydrocarbons
From Brian’s desk hq Magazine
Spotlight on... JB McNeil
Tell us a little about your history in ExxonMobil. I spent 34 years working in the Upstream Business of ExxonMobil. Seven of those years were spent living outside of the U.S. in Libya and Malaysia. My assignments within ExxonMobil were split between facilities/equipment engineering (20%), production operations (30%) and project management (50%). The projects I worked on were located in Libya, Alaska, California, Equatorial Guinea, Angola, the Caspian region and Russia, and encompassed both onshore and offshore developments. I was proud to have contributed to the success of Libya’s Hateiba Gas Field, Alaska Gas, Santa Ynez in the Santa Barbara Channel, Sakhalin I in Russia and Block 15 in Angola. Most of these were mega projects located in remote harsh environments which had little or no infrastructure. JB McNeil, WorleyParsons Board Member
JB began his career with ExxonMobil in 1974 and over the next two decades he was involved in a variety of engineering and operations assignments in the Middle East and in the USA. In 1994, JB was appointed Offshore Division Manager responsible for production in the South China Sea. In 1996, he was appointed Director General for the Sakhalin 1 Project in Russia and in 2001, Vice President for Deep Water Development in Angola and Equatorial Guinea. Between 2003 and 2005 JB held project development responsibilities for Russia and the Caspian region and in 2005 was appointed Vice President of Arctic Projects (Russia, Canada and Alaska). JB retired from ExxonMobil in 2008. He joined the WorleyParsons Board of Directors in 2010. 4
hq Magazine Spotlight on... JB McNeil
When did you first become aware of WorleyParsons? I first worked with Parsons in Pasadena in the early 1980s on Alaska Gas. I was resident in their offices for about three years as part of Alaska Natural Gas Transportation System (ANGTS) which, as you may recall, was the first large scale effort to bring the North Slope Gas to the lower 48 states. I was initially the Engineering Manager for the gas plant and later the Project Manager. I first became familiar with Worley Engineering as a result of their work in the Bass Strait for Esso Australia. I had many friends who worked those projects over the years and who had high regard for Worley people. When Worley and Parsons merged I recognized the strength the combined entity brought to the market place and since I knew both John Grill and Bill Hall, I was pleased to be asked to serve on the WorleyParsons Board. What are some of the challenges facing the industry that contractors have a key role in solving/supporting? The developments that we are working on today continue to get more difficult. They are larger, more costly, and typically are located in harsh environments with little or no infrastructure. The challenge is to find better/lower cost approaches to enable these developments to be brought to the market place. This requires innovative engineering solutions and detailed execution planning. ‘Zero harm to personnel and the environment’ has come a long way across the industry in your time. What needs to happen to create another step change?
Brian Evans with JB McNeil in Juneau, Alaska
One of the early step changes that helped start significant improvement in the industry was for companies to include contractors under the umbrella of ‘nobody gets hurt’ without the constraints of contract language and liability. I believe the next step change is for companies like WorleyParsons to take on the ‘Safety Champion’ role on developments where one might not have the lead role. My experience in this area is that companies who excel in safety also excel in job performance on an overall basis.
“The developments we are working on today continue to get more difficult. The challenge is to find better/lower cost approaches to enable these developments to be brought to the market place. This requires innovative engineering solutions and detailed execution planning.” JB McNeil, WorleyParsons, Non-Executive Director What do you see happening in the emerging unconventional oil and gas market in the US which includes shale gas, tight gas, coal bed methane and shale oil? Pace of development of these resources has depended, by and large, on the pace of technology development in the drilling/
completion arena which has, so far, enabled these resources to be included in the future energy supply equation. It is difficult to predict the pace of development since these resources have to compete with conventional oil and gas, including imported LNG, and must address issues of protecting fresh water sources. Development of these resources offers more domestic production and helps create jobs in the U.S. Is the Arctic the next major growth opportunity? There is certainly a significant resource base in the Arctic regions of the world, but growth opportunity will depend on access. I believe Alaska Gas is an opportunity as the U.S. economy improves. Additionally, heavy oil development will continue as oil prices increase to support further development. You have been a strong advocate of comprehensive Front End Execution Planning (FEEP) in projects. Tell us a little about the importance of this focus. Over the years Front End Engineering Design (FEED) has become common to enhance project definition to enable a preliminary assessment of project economic viability. Some preliminary project execution planning typically is included in this effort but from my observation it is not nearly enough. Where execution methods are fairly well established this effort has been sufficient, but where there is a lack of infrastructure in remote areas Front End Execution Planning takes on significant importance especially for the mega projects. The ability to address this need affords an opportunity to create a competitive advantage which will be readily apparent to the resource owner. One way for WorleyParsonsto capture this opportunity might be to expand the Select, Deliver and Improve work process. Spotlight on... JB McNeil hq Magazine
Focus on Zero Harm
Khalfan presenting at the WorleyParsons UAE Strategic HSE Partnership Forum in Oman
Local knowledge and customs are helping to facilitate a transformation from a reactive safety culture to one that leads through action. In May, WorleyParsons UAE hosted its second successful industry wide HSE Forum and brought home the Zero Harm message. Over 45 organizations were in attendance, including most of the Abu Dhabi National Oil Company subsidiaries. There were 20 local, regional and global WorleyParsons personnel to help host the event. There are many very large projects currently underway in the Middle East, which are bringing real challenges to safety management. WorleyParsons invited Khalfan ‘The Coach’, an Omani facilitator and HSE champion, well known for his engaging style, to guide the group through the day. Participants at the forum were challenged to make an ongoing commitment towards improving the current environment. This 6
hq Magazine Focussing on Zero Harm
commitment takes the form of active participation in working groups that will forge an identity and encourage industry leadership to develop the correct competencies which lead to the safety culture WorleyParsons prides itself on. The end goal is to have a group of safety pioneers who set strategy, with back-up and support from a broad range of safety champions that will drive the day-to-day changes. WorleyParsons UAE HSE Manager, Gary Clayton believes the approach taken will have a much greater material impact on safety results. “This deals directly with the people involved rather than process type approaches where we develop new or improved procedures and the like. This will have a huge impact and will deliver an immediate effect in the region” he said. WorleyParsons has taken on a significant challenge by engaging such a broad workforce demographic with its various cultural barriers; however past successes indicate the effort made is more than worth it. In time and with perseverance, we hope to see benchmark and leading practices adopted across many industries and organizations within the region. WorleyParsons will be the ongoing stewards and will identify three or four key topics to work on over the next six months. The working groups will deliver recommendations for action to the next forum, which will be in November 2011. As Gary stated: “Ultimately, we aim to facilitate the transition of a largely lagging and reactive Zero Harm culture to one of being proactive and leading through action”.
Global Safety Roundup
Global Safety Recognition ROSPA Gold Award WorleyParsons Europe achieved the Royal Society for the Prevention of Accidents Gold Award for 2011. Presentation of ROSPA Gold Award 2011 by Mike Parker, society trustee, to Zachary Brown, WorleyParsons HSE Manager, London
Marian McLean, Global HSE Director
WorleyParsons remains committed to our goal of Zero Harm through the investment and implementation of major programs to increase awareness and change unsafe behaviors. Every incident that involves our team triggers a root cause analysis investigation. Our HSE professionals and managers are continually briefed of significant incidents that occur on other contractors’ sites so we can capture learning across the E&C sector. We share our learnings with others through our informal network, formal industry forums and though of Leading Practices conferences. I am grateful for the commitment we receive from the executive and operations teams and the levels of collaboration they have built with customers, partners and industry bodies. Safety Milestones we have recently reached include: Europe: ConocoPhillips Jasmin Project achieved 1 million man hours without a recordable case Singapore: ExxonMobil’s SPT project on Jurong Island achieved 30 million hours without a LWC (lost workday case) Kingdom of Saudi Arabia: Saudi Polymers NCP project in Jubail achieved in excess of 60 million LWC free USA: Alaska BP Projects Program reached 1.6 million hours without a recordable case and the ExxonMobil Beaumont Alliance achieved 2.6 million hours without a recordable case Nigeria: The overall EPCM-1 suite of projects for DeltaAfrik, our Nigerian joint venture, passed 10 million manhours without a LTI (Lost Time Incident) Oman: DDO’s engineering and maintenance contract achieved 7.8 million safe hours and 44 million safe driven kilometres.
The Gold Award is given to businesses who have demonstrated through ROSPA’s auditing process, a rigorous approach to HSE via excellent management systems, consistent application of risk control measures and a commitment to promoting a safety culture.
ConocoPhillips acknowledges great safety performance
WorleyParsons management accepting the plaque from ConocoPhillips: Peter Ahm - WorleyParsons Project Director, Greg Conlon - MD Europe WorleyParsons, Brian Evans - MD Global Hydrocarbons WorleyParsons and Bart Neighbors - Engineering Director ConocoPhillips
On April 7 2011 ConocoPhillips awarded the WorleyParsons Jasmine Project a safety award plaque commemorating one million hours worked incident free. ConocoPhillips highlighted the team approach on the project called ‘The Jasmine Way’ and the active participation of all project team members in achieving this milestone.
Improve UK - safety success that gets noticed WorleyParsons Improve UK reached a landmark 4 million safe work hours, partly thanks to the positive safety culture instilled in our people on the Fellside Boiler Park Project. WorleyParsons managed 21 subcontractors where an operative undertaking the exhaust stack inspection said: “I have worked at several other worldwide sites as a steeplejack but until now I have never been subjected to such a high level of assurance as to my own personal safety as here at Sellafield. It makes a nice change.”
Focussing on Zero Harm hq Magazine
Global Awards Canada Tailings treatment facility for Syncrude Aurora Mine Strategically important awards for the developing oil sands market in Canada continue to establish us as a major provider to this growing subsector.
Americas WorleyParsons and BASF sign North America Engineering Partner contract for chemical and petrochemical projects WorleyParsons has been awarded an engineering partner contract by BASF. The contract covers chemical and petrochemical projects in North America. A similar engineering umbrella services contract was awarded to WorleyParsons by BASF for chemical and petrochemical projects in Asia and China in January 2011. Both companies envisage a long-term partnership, which will provide BASF access to WorleyParsons’ engineering resources for capital investments. The scope of work covers a range of services from studies, basis and detail engineering, to project implementation services in the United States and territories, Canada, and Mexico. WorleyParsons’ operating center in Houston will coordinate the performance of the services under the North America Engineering Partner contract. Several other WorleyParsons offices in the United States and Canada will provide their expertise and management skills as appropriate.
WorleyParsons’ wholly owned subsidiary, WorleyParsonsCord, has been awarded a contract to supply engineering, procurement and construction (EPC) for tailings treatment facilities at the Syncrude Aurora Mine located north of Fort McMurray, Alberta. The work has commenced, under the leadership of Keith Nutting, Project Director. Key to securing this work was the unique capability of WorleyParsons to undertake complete project delivery services, including engineering, material supply, module fabrication and construction, all performed by WorleyParsonsCord under a single contract. Our workshare capability will also be well utilized, including a “Team Alberta” approach involving Edmonton and Calgary for the facilities engineering, and with our Houston INTECSEA office performing specialty engineering services related to the project.
“This is a great example of how many parts of WorleyParsons can come together to really offer a winning solution to our clients.” Brad Van De Veen, WorleyParsonsCord General Manager, Hydrocarbons “We look forward to setting a new example of success for oil sands mega-project execution.” says Keith Nutting; “Our team is really excited about working with WorleyParsonsCord, in an integrated, one-team environment to deliver some outstanding outcomes for Syncrude Canada for this very critical project.” John Grill, WorleyParsons’ Chief Executive Officer, said: “We are delighted to receive this EPC contract award. We have a two decade relationship with Syncrude and we are pleased to have this opportunity to work with them on this exciting new project.”
hq Magazine Global awards
Chris Parker (SVP US Operations, WorleyParsons) and Mike McAtee (SVP Engineering, BASF) at the contract signing ceremony
“The expansion of WorleyParsons’ relationship with BASF is a testament to our ongoing commitment to deliver demonstrable value to our customers through our long term relationships. We look forward to working with BASF to assist them in achieving their business objectives while reducing costs and improving the value of their assets” John Grill, WorleyParsons CEO
Asia Petronas Gas LNG Regasification Terminal Ranhill WorleyParsons, with Malaysian partner Muhibbah Engineering, has secured a major EPC contract with Petronas Gas for Malaysia’s first LNG RegasificationTerminal, to be located in Melaka, on Malaysia’s west coast.
Working with BP to boost production from the Rumaila Oil Field in Iraq
This LNG regasification facility is the first of its kind, and blends onshore and offshore technologies/design considerations. With a capacity of 3.8 mtpa, the facility will include two floating storage units to receive and store LNG, and a regasification unit on the island jetty. The resultant natural gas will be transferred via a new sub-sea pipeline into Malaysia’s network. WorleyParsons onshore and offshore experience and long lead procurement strategy were recognized as key to the success of the bid. Brunei Shell Petroleum Brunei Shell Petroleum (BSP) has awarded Damit WorleyParsons, our Brunei JV, a contract to provide engineering and management services to their Major Project (MPM) Group.
Middle East Unlocking Difficult Gas in Block 60 WorleyParsons has increased its presence in the Hydrocarbons sector in Oman with the recent award of the EPMS and PMC contracts for Block 60 from the Oman Oil Company Exploration and Production (OOCEP). Block 60 contains the Abu Tubul gas and condensate discovery. The project consists initially of approximately 60 wells, a gathering system that takes the production from the wells to the gas processing plant, the export pipelines and other development work.
Australia TWS Hook-Up and Commissioning Transfield Worley Services (TWS) - the 50/50 joint venture between Transfield Services and WorleyParsons - have signed a contract to provide Hook-Up and Commissioning (HUC) services for the Woodside operated, North West Shelf Project’s North Rankin B Platform, located approximately 135 kilometres northwest of Karratha off the north coast of Western Australia. The scope of work includes the provision of labour and materials for the hook-up and assistance with pre-commissioning and commissioning of relevant systems for the HUC of the integrated float over deck. The work covers both the onshore planning phase and the offshore implementation phase.
Iraq Rumalia Oil Fields
BP Iraq NV, and its partners PetroChina and the State Oil Marketing Organization (SOMO) of the Republic of Iraq, awarded WorleyParsons the design, minimum works and Integrated Project Management Team (IPMT) services for the super-giant Rumaila oil field. A major workshare plan involving London, Dubai and Iraq has been developed to support the project, along with the implementation of a localization plan to develop Iraqi personnel. Rumaila is recognized as key to the long term economic development of Iraq and will become the world’s second largest producing oil field, contributing approximately 10% of Middle East production, 7% of OPEC production and 3% of global production. Kick off for the Rumaila project in mid-February was led by Liege Robson Project Director and IPMT Manager of Projects Bob Fintland who said: “These projects are strategically important for Iraq, BP and WorleyParsons. We recognize the long-term importance of efficiency in continuous energy supply for the development of this emerging economy”. The IPMT comprises personnel from the owners’ consortium and WorleyParsons. The prime objective is the development of an Overall Development Plan to increase crude production from 1.2 mmbopd to 2.85 mmbopd. This conceptual phase, which is almost complete, will be followed by a Define phase. This work is running in parallel to the Minimum Work Obligations (MWO). MWO are EPC projects required to support the Technical Services Agreement between the partners and Iraqi Government. The WorleyParsons MWO project team scope includes detail engineering design and procurement support. Work has commenced on the detailed engineering of two degassing station upgrades which will include three phase separators and a new flare. A new water treatment plant at Qarmat Ali will be integrated into an existing water plant. “We are pleased to be able to continue our involvement in the reconstruction and development of Iraq’s oil and gas infrastructure. We understand the significance of the Rumaila development to the regeneration of the Iraqi economy, and we will work closely with the partners in the Rumaila development, BP, PetroChina and SOMO to create the maximum value over the life time of the field.” John Grill, WorleyParsons CEO Global awards hq Magazine
Shtokman Development Providing long term energy security for Russia, Europe and international markets.
Teriberka Vyborg Greifswald
ÂŠ image courtesy of Gazprom
hq Magazine Shtokman Development
“It comes with the type of technical challenges that engineers and project specialists love to address. It is a career-defining project.” David Cram, Project Manager, Shtokman
© image courtesy of Gazprom
Gazprom’s Shtokman natural gas reserves are amongst the largest offshore fields in the world. The multi-phase development of the field will make a significant contribution to long-term energy security on the local, European, and international markets, supplying the gas needed to meet growing energy demand. There are many attractive features of the Shtokman field beyond its magnitude – the feedstock composition requires minimum gas purification and treatment investment, proximity of the resource to key LNG markets in China and India, and the opportunity for phased development to ensure sustained and long-term gas supply. For Gazprom, the Shtokman field will be the basis of future Arctic shelf development and permit greater flexibility and reliability of supply. While the magnitude of the project is very exciting, it comes with the type of technical challenges that engineers and project specialists love to address. It is a career-defining project. The gas reserve is in deep water (340 metres) and the design must account for wave heights that can reach 24 metres. Temperatures can drop as low as -40 C and rarely climb above 10 C. Furthermore, ice may be present at the Shtokman location in the form of ice floes or icebergs of several million tonnes. And all of this in a location that does not see the sun for most of the winter.
The complete field will be developed in three or more phases by means of a subsea production system tied back to floating production facilities. Produced gas will be conditioned onboard the production vessel and further transported to the Russian mainland via a subsea pipeline, after which it will be exported into the onshore transportation network or processed to liquefied natural gas for further transport to end user locations. Condensate will be exported directly from the production vessel by means of shuttle tankers. WorleyParsons and our deepwater specialist, INTECSEA were delighted to be appointed by Gazprom to perform front end engineering design services on its Shtokman Phases 2 and 3 development. The role comprises the design of a ship-shape hull capable of withstanding the sea ice conditions and topsides capable of processing 70 million cubic metres per day of gas plus associated liquids and the overall floating production, storage and offloading (FPSO) system integration. The team has a number of outstanding reference projects to support their deliberations including the PreFEEDs for Gazprom’s Shtokman Phase 2 and 3, ExxonMobil’s Sakhalin Arkutun Dagi and Hebron Development, and Chevron’s Rosebank FPSO. The work is being completed by a number of centres of excellence: • INTECSEA Delft - technical assurance, turret design, offloading system design, ice studies • WorleyParsons Houston - FPSO topsides design • INTECSEA Houston - FPSO hull design The team is supported for the design of the ice breaking hull by historic Russian ship building and ocean engineering leader - Krylov Institute- that was established in 1894. Additionally INTECSEA and WorleyParsons are working closely with a Russian design institute to develop the special technical packages required for acceptance of the design by the Russian authorities. Shtokman Development hq Magazine
hq Magazine Kazakhstan - Successful Project Delivery
Traditional Kazakh man hunting foxes and wolves using trained golden eagle
Kazakhstan Successful Project Delivery
Since 1998, WorleyParsons has worked diligently to establish itself as a trusted partner to the Kazakh people by committing to developing the local economy. Fourteen years on, we can now lay claim to project activity in the three major project locations of Tengiz, Kashagan and Karachaganak, as well as chalking up several major engineering ‘firsts’ in the region. We were the first to deliver an in-country complex process FEED, the first EPCM project delivery company, and the first to use 3D CAD technology in the country.
“Few countries could have achieved what Kazakhstan has done in such a short period of time. While it may be the world’s ninth largest country it was only when it achieved independence in 1991 that is has been able to accelerate its development. The government has constantly displayed an ability to work with major oil and gas companies to develop their resource base in a managed sustainable manner that offers a model to the other ‘stans’ and developing nations worldwide.” Steve Clapham, WorleyParsons Kazakhstan President
Kazakhstan is the largest landlocked country in the world and ideally positioned to trade with the 21st century super powers and neighbors - China and Russia. The once nomadic Kazakh people – still famed for their horse skills and unique equestrian sports – are custodians of a land with an array of surprising adventures. You can trek on foot or horse in the spectacular Tian Shan or Altay Mountains, watch flamingos on steppe lakes or discover mysterious underground mosques near the Caspian Sea. Today Kazakhstan has 131 ethnically and culturally diverse groups and is famously the site of the Russia cosmonauts landing site and the former USSR’s primary nuclear weapon testing site. After twenty years of executing projects in the Former Soviet Union, WorleyParsons’ opened the Kazakhstan office in 1998 in Atyrau. Today four offices and two project sites - Aksai, Uralsyk, Atyrau, Almaty, Astana and Tengiz are servicing the oil and gas sector along with the mining and power industries.
Commitment to Local Contractors
Our support of Agip KCO, TengizChevrOil, Karachaganak Petroleum Operating Co., PetroKazakhstan, and Transmeridian has been pivotal to Kazakhstan’s rapid rise as one of the most successful emerging nations in the world.
After working closely with KGNT on the Kashagan Full Field Development Project and TCO’s Sulphur Expansion project, WorleyParsons and KGNT developed a partnership for in country project delivery. Kazakhstan’s leading design institute, KING, has also entered a partnership agreement (on TCO) that will include a significant investment by WorleyParsons in skill transfer and professional development for our local teams.
Our long term presence in Kazakhstan underpins our clear commitment to the utilization and development of local resources. Our considerable local investment has resulted in a state-of-theart, fully operational, Lloyds Register ISO9001 accredited facility, able to provide the full range of project execution services to our local customers. The in-country presence is further strengthened by a number of long term relationships with leading Kazakhstan and Russian design institutes and specialist consultant, engineering and construction companies. This provides the business with a comprehensive understanding of the local fabrication and construction capabilities and requirements to meet the logistics challenges.
Kazakhstan - Successful Project Delivery hq Magazine
On the Couch Stephen Clapham, WorleyParsons Kazakhstan President
Steve, WorleyParsons has been involved in the region now for 14 years – what in your view have been the key achievements? In that relatively short period we’ve been involved in providing some major ‘firsts’ in the engineering delivery area such as the first in-country complex process FEED, the first EPCM project and the first application of 3D CAD in project delivery. Most importantly, we have achieved a high level of trust with the locals, which makes everything else we’ve achieved possible. What are the major projects we are involved in? Locally we are engaged in projects for TCO, AKCO and KPO which range from small brownfield modifications to the greenfield export of sulphur from Kashagan which, at a TIC of $1bn, is the largest in-country design project ever undertaken. What do you think has been the key to WorleyParsons success in Kazakhstan? There are a number of attributes but the key one for me is our immersion in the local Kazakh culture which has resulted in a profound commitment from us to assist with the economic success of the country. The investment we have made in training and development of nationals to become highly skilled managers and engineers is vital to bringing Kazakhstan into its own on the world stage. The future of our business depends on the Kazakhstani population being equipped to handle the challenges involved in resource development. I am confident that our investment in people development will be a legacy to be proud of, for generations to come.
“I am proud that since opening the business in Atyrau, WorleyParsons has consistently exceeded Local Content requirements and today the vast majority of the 450 in-country personnel are local Kazakhstanis.” Talgat Imangaliyev, WorleyParsons Director of Government Affairs, Kazakhstan 14
hq Magazine Kazakhstan - Successful Project Delivery
TengizChevrOil SGI/SGP project assembly
Commitment to Local Development Major resource, energy and infrastructure projects are an ideal platform to provide skill and capability development in Kazakhstan. The craft training center that was created for TengizChevrOil’s SGI/ SGP project trained over 3,500 local personnel. Extensive training programs are in place for all WorleyParsons Kazakhstan engineers and project managers. Relationships have been built with the Atyrau’s Oil and Gas University and Polytechnic College, KazNTU in Almaty, Nazarbayev University in Astana. Talgat Imangaliyev, WorleyParsons Director of Government Affairs in Kazakhstan, has been instrumental in guiding the business partnerships with local contractors and ensuring we are meeting our shared objectives for Kazakh training and career development. “WorleyParsons well understands the importance of local industry and skill development to enable us to compete for contracts in-country and internationally. Significant commitment has been made in supporting local contractors and staff to meet the rigorous global standards required for world class project. An example of this is the exposure to global practices through transfers to other WorleyParsons locations across the globe” he said.
Agip KCO’s Kashagan Development
“We consistently achieve greater than 50% local content on our engineering projects, and on TengizChevrOil’s Second Generation project alone the management team released goods and services contracts valued at $1.6 billion locally. I am very proud of these achievements.” Talgat Imangaliyev, WorleyParsons Director of Government Affairs, Kazakhstan
Agip KCO’s Kashagan Full Field Development In 2008 Agip KCO awarded WorleyParsons and joint venture partners the Front End Engineering Design of the Full Field Development (Phase 2) of one of the world’s largest oil discoveries in the past thirty years – Kashagan in the northern part of the Caspian Sea close to Atyrau, Kazakhstan. This award followed the engineering, fabrication and hook-up of the phase one project (the ‘Experimental Program’).
TengizChevrOil’s SGI/SGP projects TCO (a joint venture between Chevron, ExxonMobil, KazMunaiGaz, and LUKArco) awarded WorleyParsons and our joint venture partner the EPCM services for the $6.9 billion world-class expansion of its oil and gas production facilities in Western Kazakhstan. The SGI/SGP projects increase the production potential from 13 million tonnes to over 25 million tonnes per annum. The projects included a number of firsts, including: •
the largest single-train oil/gas separation facility
the world’s largest single-train sulphur recovery unit
a first-of-its-kind high-pressure/high H2S gas re-injection facility
The projects also required an extensive infrastructure upgrade that included 435 miles of railway. The Asset Development Project was one of the largest and most complex projects undertaken in the oil and gas industry. The project team completed 163 million work hours and at its peak had an active work force of 25,000 personnel.
Kazakhstan - Successful Project Delivery hq Magazine
Arctic - The Last Frontier In 2009 the U.S. Geological Survey completed the first-ever comprehensive assessment of Arctic oil and gas deposits revealed that 13% of the worldâ€™s undiscovered oil and 30% of its undiscovered natural gas could be trapped beneath the far northâ€™s barren land and icy waters. The exploration of the Arctic for petroleum is more technically and physically challenging than for any other environment. There are 19 geological basins making up the Arctic region. Some of these basins have experienced oil and gas exploration, most notably the Alaska North Slope where oil was first produced in 1968 from Prudhoe Bay. However, only half these basins - such as the Beaufort Sea and the West Barents Sea - have been explored. The Arctic has a unique ability to conjure imaginations, invoke passions, and motivate extraordinary effort. Arctic stories are full of legend and lore. It is also a homeland for many indigenous peoples whose heritage, cultures, customs and rhythms of life are a reflection of the harsh beautiful landscape. An unforgiving terrain that is abundant with life. Balancing the need to meet world energy demand and maintaining the pristine beauty of the Arctic is complex. Sustainable development in the region has been ongoing for nearly 50 years and it requires patience and a long-term commitment. WorleyParsons first commenced work in the Arctic in 1970 and today is one of the world leaders in delivering safe, sustainable outcomes in the region. The extensive skills and knowledge base has accumulated over the past eight years through the acquisition of Parsons E&C, INTEC, Sea Engineering, Westmar and Colt Engineering.
hq Magazine Arctic - The Last Frontier
ExxonMobilâ€™s Arkutun-Dagi Platform Arctic - The Last Frontier hq Magazine
On the Couch Dave Herman, Senior Vice President, WorleyParsons Hydrocarbons for Europe, MENAI, & Sub-Saharan Africa
How important a role will technology play in developing the Arctic market?
Influence of technology is absolutely critical. Due to the harsh inhabitable climatic conditions of Arctic, operations will heavily depend on the advancement of technology for float-over platform design, unmanned operations, accurate Arctic weather pattern predictions, ice and iceberg management, fuel, transport and communications etc. The development rate of these technologies will heavily influence the rate of market development in the Arctic. HSSE considerations will be critical. Do you see increasing alignment of expectations between the stakeholders or Arctic Territories?
Major Arctic resource acreages are controlled by Russia, Norway, Canada and United States. Due to the unproven nature of this market, leading countries have an aligned focus and expectation towards safety and environmental protection of these sensitive regions. This is now driving NOCs with acreage and IOCs with the technology and experience to form E&P collaborations and knowledge sharing. How important has it been for WorleyParsons to gain extensive alignment with the local communities?
WorleyParsons has a long history of successful growth through positive partnerships and collaborations with local communities globally. The local communities are directly involved with the development of a region and it’s absolutely essential to gain alignment with these communities for any successful business setup.
Leadership in innovative technical design and program execution processes has characterized the efforts of all the WorleyParsons Arctic teams over the past forty years.
Aerial view of ExxonMobil’s Point Thomson natural gas field
Leadership in innovative technical design and program execution processes has characterized the efforts of all the WorleyParsons Arctic teams over the past forty years. WorleyParsons holds the number one position for design in float-over topsides. Pipelines on the Arctic Ocean continental shelf must typically address trenches up to 6 meters deep for seabed ice gouge protection and floating construction equipment working only during a ten week summer open water season. Our Arctic team pioneered many modularization strategies including sealift mega module to truckable module design and the accompanying logistics innovations. The INTECSEA team has engineered all three pipeline systems in the Beaufort Sea using innovative design approaches and is presently supporting the energy industry as planned conventional and subsea field developments move deeper into the Arctic Ocean. WorleyParsons has extensive onshore and offshore Arctic mega projects delivery track record in all the key Arctic fields - Sakhalin Island and Barents Sea in Russia, Kazakhstan, Alaska, and Canada. The industry leading expertise has been recognized by customers with a number of key projects awards including: •
hq Magazine Arctic - The Last Frontier
FEED and PMC for Agip KCO’s super giant oil field, Kashagan, in shallow Caspian Sea waters in Kazakhstan. Development consists of three blocks of approximately 100,000 BOPD and 280 MMSCFD of gas each, with both offshore and onshore processing facilities.
Phase one of the EPC services 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 to produce 10,000 bpd of gas condensate, infrastructure and an export pipeline.
EPC services for Husky Oil’s Sunrise project located in Fort McMurray , Alberta in Canada. The steam-assisted gravity drainage (SAGD) plant will be capable of producing 60,000 bpd of bitumen. WorleyParsonsCord, the construction group for WorleyParsons in Canada, will be responsible for execution of the project scope that includes the engineering, procurement, modularization and construction of eight SAGD well pads, gathering lines and underground pipelines comprising the field facilities portion of the project.
NANA WorleyParsons Localization Model One of the attractive features for WorleyParsons in acquiring Canada’s leading engineering business, Colt Engineering, in 2008 was the commitment the business had shown to developing a strong partnership with local business in Alaska. The NANA/Colt Engineering, formed in 1997, provides a broad range of engineering and project services to Alaska’s petroleum, mining, government and utility industries. WorleyParsons currently has more than 800 personnel permanently stationed in Anchorage and Prudhoe Bay, Alaska supported by dedicated specialists in cold weather and remote design and project execution in Monrovia, Edmonton and Calgary.
ExxonMobil’s Sakhalin 1 Artukun-Dagi will be the largest open water float-over platform in the world. Its Arctic environment provides a number of design, project execution maintenance and operability challenges. The field is being developed using a gravity based structure (GBS) to support the integrated production/drilling topsides. WorleyParsons is providing regulatory approvals services for the offshore GBS, offshore topsides, offshore pipelines, and offshore pipeline tie-in facilities as well as construction support.
FEED for ExxonMobil’s Hebron platform topsides destined for Newfoundland, Canada. Hebron is a heavy oil field estimated to have 400-700 million bbls of recoverable resource. The project reinforces WorleyParsons industry leadership in topside float-over techniques.
Gazprom have appointed WorleyParsons to perform Front End Engineering Design services on its Shtokman Phase 2 and 3 Development in the Barents Sea, Russia. The role comprises the design of a ship-shape hull capable of withstanding the sea ice conditions and topsides capable of processing 70 million cubic metres per day of gas plus associated liquids and the overall floating production, storage and offloading (FPSO) system integration.
Northwest Arctic Native Association’s (NANA) mission is to improve the quality of life for its people by maximizing economic growth, protecting and enhancing its lands, and promoting healthy communities with decisions, actions, and behaviors inspired by their Inuit Values. NANA’s business model is considered to be exemplar for indigenousindustry partnerships. Of Alaska’s total population 14% is Alaska native and currently 7% of NANA WorleyParsons workforce is Alaska native. NANA WorleyParsons is involved in many initiatives which support Alaskan native hire and development including: • Engineering Drafting Development Program •
Alaska Federation of Natives Career Symposium
Alaska Native Science and Engineering Program (ANSEP)
Technology Application and Learning for Professional Achievement (TALPA)
First Alaskan’s Institute Arctic - The Last Frontier hq Magazine
AUSTRALIA TW Leading Practices Forum The Transfield Worley Regional Leading Practice Forum East Coast 2011 was held in Brisbane in late March. It involved two days of leading practice presentations, high profile speakers and networking events. The client delegate’s feedback ranked the event the best they had ever attended. The Forum hosts more than 600 members from 19 industry sectors and 21 countries. It is governed by a client-led Steering Committee that drives the development of activities to address the common challenges our sectors face.
NIGERIA Champion Award DeltaAfrik, was presented with one of the Champion Awards by the Nigerian Content Monitoring and Development Board and the Federal Ministry of Petroleum Resources. These awards are presented to companies and individuals who show exemplary leadership in their encouragement of developing local people and business providers to develop the local Nigerian economy. The Managing Director of the WorleyParsons business in Nigeria, DeltaAfrik Engineering Limited, Akin Odumakinde was awarded for his leadership and commitment to the development of his Lagos team.
Uzoma Akalabu, DeltaAfrik’s Nigerian Content Coordinator who represented the company at the occasion, presented the award to Akin Odumakinde at DeltaAfrik’s Town Hall meeting in April, 2011.
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The strength of the Forum lies within our global member organisations, their willingness to share innovative and leading practices and to work together to drive change within their organisations and industry. Presentations involved leading practices around safety, sustainability, capital efficiency, operational efficiency, people management, asset strategy and management and contract delivery models. After successful forums in Edmonton, Canada and Beijing, China the Leading Practice Forum is organizing to be in Rio de Janeiro, Brazil later this year. Customers wishing to be part of the Steering Committee are encouraged to contact us.
David Joyce, MD Development Projects – Rio Tinto Iron Ore, addresses the recent forum
WorleyParsons Acquires KV3
Flawless Execution at Shell Sarnia
WorleyParsons recently acquired KV3, a leading multi-disciplinary engineering consultancy based in the Republic of South Africa (RSA).
We were thrilled to receive the following statement from our Shell Canada customer: “This was the largest, most complex, most expensive combined turnaround and project in our history. There was no corner of our plant and no person that was not touched. This was a true test of “one site, one team” working closely together to deliver a truly great result.“
The business has been merged with the current local operations under the WorleyParsons RSA banner. Today WorleyParsons has over 700 personnel in 12 offices across the country to support leading customers with comprehensive services throughout the region.
The WorleyParsons Sarnia team recently completed detailed engineering on the Shell Canada Products Fluid Catalytic Cracking Unit (FCCU) Project to bring the unit to a level of Asset Integrity/Reliability consistent with Shell’s operating standards. The new upgrades included:
New opportunities in an ancient land
The fractionator tower
The drive by the Uzbek government to take their resources development to an international level has resulted in exciting opportunities for the Hydrocarbons sector.
Regenerator air grid, riser and cyclones
Disengager vessel and cyclones
Our presence in Uzbekistan has been strengthened by teaming up with two leading Uzbek Design Institutes to form a joint venture partnership. The JV will provide the highest level of service known to date in the region by offering engineering services that comply to both international and local standards.
The turnaround was an excellent opportunity to put our twelve year relationship with Shell to the test – congratulations to all the integrated teams for meeting Shell’s expectations.
Our proven commitment to the long term development of emerging economies has once again positioned us as the preferred choice with governments needing project delivery expertise to make the most of their natural resources to benefit their local communities.
Ancient and famous city buildings of Samarkand, Uzbekistan
Office Intel hq Magazine
Offshore Technology Conference
1500 Years Combined Company History
Houston, May 2011 INTECSEA and WorleyParsons shared a booth in the Reliant Center for the fourth year in a row for the 2011 OTC exhibition. The shared booth offered a great place for customers and colleagues to gather and discuss upcoming work and answer technical questions on various projects. A technical paper was presented by Holgar Kelle and Jorg Schlatt, from the WorleyParsons Melbourne, Australia office entitled ‘Floating Regasification Terminals: Selections and Marinisation of Regasification Equipment for Offshore Use’. By all accounts the now famous invitation-only WorleyParsons Wine Night was a highlight of the conference with customers and colleagues enjoying the opportunity to socialize in a fun environment.
This year, WorleyParsons is honoring the entrepreneurial spirit of our people and the strategic acquisitions that have brought together 1500 years of company history. An interactive timeline that captures key milestones of WorleyParsons development and can be viewed at our website www.worleyparsons.com
“ I am excited about the opportunity to celebrate the milestones our people have achieved across the various regions and organisations. It’s certainly been a fascinating journey and the interactive timeline will appeal to anyone with an interest in WorleyParsons’ strategic development.” John Grill, WorleyParsons CEO WorleyParsons and INTECSEA at the OTC event
Brazil, October 2011
Ocean Energy Center
WorleyParsons, INTECSEA and our Brazilian based operation CNEC WorleyParsons are delighted to support OTC, the world’s foremost event for the development of offshore resources, expansion to Rio de Janeiro, Brazil in October 2011. We look forward to welcoming our customers to the event. Let us know if you are attending.
Technology Pioneer Award - The DeepStar Project Recently, our specialist deepwater division INTECSEA was recognized by the Ocean Energy Center, along with several other companies, as a Technology Pioneer for their participation in the DeepStar project, an inter-industry group committed to sharing their expertise and resources to advance deep water exploration. Brian McShane accepted the award on behalf of INTECSEA at the Ocean Star Gala event. Ocean Energy Center recognized the pioneering efforts of all the individuals and early companies who participated in the development of the first phase of the DeepStar Project. Today, over 1,800 industry personnel are active in the program with operators, contractors and service companies contributing, monitoring and communicating via The DeepStar Project website and associated events.
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Recent Appointments Manuel Junco Senior Vice President, Hydrocarbons for USA, Caribbean and Latin America
Paul Sullivan Global Director, LNG, FLNG and Regasification
Manuel’s thirty year Hydrocarbons track record spans the globe and includes every major independent and national oil and gas company.He brings extensive project and sponsorship leadership experience from his involvement in multiple mega projects for international oil and gas companies. Manuel’s experience includes management of long term global alliances through to mega greenfield projects.
Paul has over 20 years’ global experience in the LNG sector involving construction and engineering activities. His leadership experience includes British Gas LNG liquefaction and regasification projects, project management of major LNG Import and Export (Liquefaction) contracts from feasibility through EPC implementation. He developed, from concept to construction and installation, ExxonMobil’s Modular LNG tank concept for world first offshore GBS LNG Import Terminal (Adriatic LNG). Paul will work closely with WorleyParsons LNG technical leadership team headed by Chris Mole.
Dr Dorel Iosif Global Director, Asset Integrity Solutions Consulting Dr Dorel Iosif has been appointed Global Practice Director in the Asset Integrity Solutions consulting practice and is based in the Perth office. He holds a PhD in Numerical Modeling from the University of Melbourne, Australia. Dorel has over 22 years of technical experience with in the industry having worked in the Middle East, United States and Australia and has been nominated for 2 engineering excellence awards. Dorel has held various senior roles within global companiessuch as BHP Billiton. Key areas of expertise are; integrity management, applied mathematics, numerical modeling, onshore structures for LNG, valuations, and strategy and business development.
Tim Goodhand Global Director, Sulphur Technology Tim Goodhand has been appointed Global Director of Sulfur Technology. In this role he will grow the business and expand our range of sulfur and acid gas removal technologies. He will further develop our two geographically strategic ‘Centers of Excellence’ in London and Monrovia. Tim brings significant commercial experience in Technology Licensing and has a proven track record of delivering technically complex projects as a Senior Project Manager.
Joe Nash Sulphur Technology Operations Manager
Mike Mott Director, Hydrocarbons for Middle East, North Africa & India (MENAI)
Joe has been appointed as Sulphur Technology Operations Manager where he will manage the local and global reorganization of the subsector. He has an excellent track record as a commercially incisive Project Manager working on medium to mega projects in various locations. Joe looks forward to facilitating our goals of improving our competitiveness within existing markets and expanding our offerings into new markets.
Over thirty years of diversified international and domestic experience in the engineering and construction industry working for world-class E&C companies. Mike has an extensive background in business development, engineering office management, contract negotiations, project management, contract administration and establishing offices in foreign markets. HI market experience inlcudes projects in oil and gas, petroleum refining, gas processing, petrochemical, environmental, infrastructure, power generation, transmission, and desalination projects. Office Intel (continued) hq Magazine
Asia Pacific Graham Hill Senior Vice President
Canada Mike King Senior Vice President
USA, Caribbean and Latin America Manuel Junco Senior Vice President
Europe, Middle East, India and Sub-Saharan Africa David Herman Senior Vice President
Sub-Sectors and Business Lines Andy Cole Senior Vice President
Global Hub Local Office
Project Development Jan Van Willigen Senior Vice President
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