Sharing success international 2013

Sharing Success

Our improvements, innovations and ideas

WorleyParsons Improve Relationships 2013 International Edition

Welcome note from Randy Karren Welcome to the international edition of Sharing Success, the Improve Group’s annual publication to share our ideas, innovations and improvements across our business.

Welcome to the International edition of Sharing Success our annual Improve publication, which showcases examples where we have added value to our customers across our relationships.

It is important that we take the time to recognize the great work we are doing as a team. Sharing Success does this by providing examples of how we have come up with innovative and new ideas that led to reduced costs for our customers.

Sharing Success highlights how we have exceeded on our promise; it highlights how we have creatively delivered solutions above and beyond expectations. In Improve the success of our customers and striving to continuously improve our offering is what drives us. Each of the on-site teams in this issue has taken the time to analyze how they are delivering services and have implemented ways to improve or append that offering.

Congratulations to the team at STOS. Thanks again for your commitment and dedication to our successes.

Please continue to share your successes with the rest of the Improve community. And I encourage you to submit any great initiatives you have seen or been part of within an Improve relationship. I hope you enjoy this edition of International Sharing Success and hope to present you with more success stories in future.

Randy Karren Group Managing Director Improve

I am pleased to announce that the Shell Todd Oil Service (STOS) team in Zealand is this year’s winner due to their exceptional safety performance in having achieved a remarkable 5 million work hours lost time incident (LTI) free and also achieved a Total Recordable Case Frequency Rate (TRCFR) of zero. This relationship has also achieved bankable maintenance savings of AUD 6 million.

Publication Produced by

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WorleyParsons Marketing & Research Group, Australia

Sharing Success International Welcome note from Randy Karren

Editor Kim Nguyen Improve Marketing & Research Kim.Han.Nguyen@worleyparsons.com

Contents International Sharing Success Overall Winner 2013

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Research and Development, Froth Treatment Solids Reduction

6

Milestone in Safety

7

Tall Stack Cathodic Protection System

8

Liquid Pitch Tank Cleaning and Heating System Replacement

9

Steam Turbine Overspeed Trip Retrofit

10

E1102 into Kerosene Service Project

12

Pressure Safety Valve Project

14

Planned Pohokura Shutdown Assurance Step

15

Complex Temperature and Stress Element: Failure Analysis and Redesign

17

Advanced Work Packaging

18

Silos C and D Refurbishment

19

Lilly’s Bridge Life Extension

20

Collaboration, Value Generation and Resulting Savings

22

New Benchmark Modular Design

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Sharing Success International

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Sharing Success Winner 2013 Improvement Journey, STOS Customer

Shell Todd Oil Services Limited (STOS)

Name Location

Shell Todd Facilities Integrated Services Taranaki, New Zealand

What was the need?

Shell Todd Oil Services (STOS) produces about 70% of New Zealand’s natural gas for their joint venture owners.

Through an evergreen Improve Relationship which began in 1993, WorleyParsons provides engineering, construction, procurement and maintenance services for all STOS facilities employing a one-team, integrated approach with our customer.

The relationship includes pipeline and loadout facilities, three offshore platforms, three onshore production stations, nine remote well sites and three tank farms.

Safety and caring for the environment are the top priority for STOS. The challenge for our customer on these facilities is resource security, facility know-how and technical competence in keeping with their safety and environmental focus.

What did we do?

We have a long standing relationship, deploying complete asset management solutions to STOS. Working integratedly with our customer, the contract team draws on existing WorleyParsons joint ventures for support in the execution of this integrated services contract. We employ global expertise from both parent companies to support portfolio delivery and implementation.

The team operates offshore in the Taranaki Basin and onshore around the Taranaki region. The maintenance teams comprise of mechanical, instrument and electrical technicians as well as scaffolders, riggers, insulators and painting crews. Construction engineers provide support to customer managed maintenance activities. Project teams include project managers/engineers, designers, engineers, commissioning and project support staff in addition to trade crews.

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

STOS has been established as a ‘Best in Class’ asset integrity system, as assessed by Shell Global Solutions.

The customer’s facility has been benchmarked within Shell’s Top 200 global contracts.

The team has achieved bankable maintenance savings of USD 6M since contract inception.

There has been an 80% HSE improvement since 1998. To date our team has delivered over 5 million work hours since the last lost time injury to the contract team, which includes 30+ subcontractor organisations. This performance highlights our ability to work with our customers, contractors and vendors in a consultative and collaborative way to deliver the Zero Harm vision. The current Total Recordable Case Frequency Rate (TRCFR) is 1.9 per million work hours. This is a significant achievement on our journey towards Goal Zero.

Since 2010 the relationship, which includes 270+ contractors, has reduced its TRCFR rate from 8.6 to 1.9 per million work hours on a rolling 12 month basis and has recently achieved a TRCFR of zero.

Who was involved?

Stephen Sandifer (Improve Relationship Manager) and the WorleyParsons and STOS integrated team: John Pitman (STOS Project Manager, Special Projects), Paul Taylor (Pohokura Projects Manager), Phil Moore (STOS Manager of Projects/ Programme Change Manager) and Kerry Williamson (STOS Maintenance Engineering and Project Delivery Manager).

What did we learn?

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The team has achieved bankable maintenance savings of USD 6M since contract inception.

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Sharing Success International Sharing Success Winner

HSE leadership and persistence can transform a team’s culture.

HSE ownership has become real throughout all levels of the team with leadership becoming increasingly supportive, visible and active in pursuit of Goal Zero and perfectly aligning with STOS’ safety and environmental priorities.

During 2013, the integrated team celebrated an injury free period of 270,000 work hours, showing each company’s ongoing level of commitment toward operational HSE excellence.

Maui Production Station, image courtesy of Shell Todd Oil Services Limited

“We are proud of the improvements made within this relationship and are working together with our customer towards further improvements in keeping our integrated team free from harm.�

- Steven Sandifer, STOS Relationship Manager

Sharing Success Winner Sharing Success International

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Research and Development Froth Treatment Solids Reduction Customer

Syncrude Canada Limited

Name Location

CoSyn Fort McMurray, Canada

What was the need?

In late 2011, Syncrude Canada Ltd. concluded that excessive erosion in their bitumen upgrading facilities was caused by solids carry-over from their upstream Froth Treatment process.

An urgent solution was required to address this issue. The prevention of unplanned downtime had the potential to provide a significant yearly production increase.

What did we do?

In 2008, CoSyn Technology began providing engineering services to support Syncrude’s Froth Treatment Research and Development (R&D) program. In 2009, we completed a technology situation appraisal report which identified high speed disc centrifuge separation as a high priority research area. By the end of 2011, just as the urgent need for improved solids separation was recognized, we had completed three years of technology development work which was capable of solving this problem.

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

Retrofit conversions are underway for 34 disc centrifuges. One plant conversion is complete, with the remaining conversions to completed by the second quarter of 2014.

Syncrude management has signed off on a total project value of $800M. This sum represents the cost savings of the new solution over the old solution (approximately $195M) plus the net present value (10yrs) of the production that this new technology enabled.

Who was involved?

This program was a collaborative effort between Syncrude, CoSyn Technology, and Alfa Laval.

Program Leadership: Dan Bulbuc, P.Eng (SCL Program Manager)

Our solution was developed in two phases:

David Childs, P.Eng (CoSyn Program Manager)

Phase 1: We began pilot testing an advanced prototype disc centrifuge based on all-new separation knowledge acquired through vendor collaboration and computational fluid dynamics (CFD) modeling. Pilot tests later demonstrated that the improved prototype disc centrifuge was capable of solving the solids carryover issue. The cost for replacing 34 machines was estimated at $200M.

Peter Mundy (Alfa Laval Business Devevelopment Manager)

Phase 2: We recognized that we could develop a retrofit package for SCL’s existing centrifuges with our newly developed knowledge. Over the next 2 years, we developed, installed, and tested a retrofit package in partnership with the vendor. The overall cost of retrofit conversion was approximately $5M (a 95% cost reduction compared to the replacement option).

CoSyn R&D Team Members: Nesma Ansari, Jason Boodram, Vahn Byma, Amanda Chapman, David Childs, Brandon Grant, Mark Jamieson, Ted Kizior, Scott Leakey, Chad Nedohin, Mandy Nickel, Steve Orser, Christine Engler-Cooper, Andrew Sell, Mike Wagner, Marwyn Vernon, Adam Weir and Nima Yousefi

What did we learn?

• There is a tremendous opportunity to add value to our Improve partners in the area of research and development • Internal and external collaboration is key to troubleshooting difficult problems • Unexpected results provide an opportunity to develop new knowledge and solutions

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Sharing Success International Research and Development, Froth Treatment

Milestone in Safety Customer

Vale Nouvelle Caledonie

Name Location

Vale Nouvelle Caledonie, Integrated Services Goro, New Caledonia

What was the need?

Safety is paramount in Vale’s large and complex operation in Goro, New Caledonia. The site stretches over 22 hectares on the Goro Plateau and extracts nickel from crushed ore slurry by high pressure acid leaching. Ore is mined adjacent to the refinery site and pumped to the refinery for processing. The final nickel is shipped from the established port facilities at the Bay of Prony adjacent to the refinery.

Transfield Services WorleyParsons New Caledonia (TSWNC) workers deal every day with safety hazards such as vehicle interactions, heat, pressure, chemicals, working at heights, confined spaces and lifting objects. Add to all this the complications of communications in French and English, and it makes for a complex safety challenge.

What did we do?

Our team built a wide range of initiatives into daily operations and encouraged practices to strengthen the site’s safety culture. This included all team members taking five minutes to stop and consider their work situations if there is any doubt or concern about safety; ‘If in doubt, stop and ask!’.

Robust training programs including job-start, stop work authorization cards, mandatory safety rules, a leadership commitment program, skills development plans, internal awareness training on specific risks and implementation of safety processes were all delivered to workers on this site.

All workers were asked and encouraged to look out for one another and actively promote a strong safety culture.

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

This high commitment to safety allowed TSWNC to reach the equivalent of 500,000 work hours incident free.

As of June 2013, the TSWNC team at Vale Goro’s nickel refinery in New-Caledonia achieved 19 months without a recordable injury which meant zero medically treated injuries and zero lost time injuries. They are currently on target to reach the next goal of two years.

This milestone is proof that our management system is strong and that we are building a safety culture within our teams. The achievement is particularly impressive when considering the challenging work conditions on site. The team is dedicated to working hard to ensure these safety results continue.

Who was involved?

Christian Peytavin (General Manager) and Gilles Sennes (HSER Manager, Vale). The team of 200 made up of 96% local employees includes electrical, instrumentation and mechanical trade people, together with supporting safety, quality, planning and administrative staff. This number also includes three local subcontractor companies for industrial maintenance and scaffolding.

What did we learn?

Achieving such a result is not just an objective, but the first step in achieving no injuries to anyone at any time.

Only a real safety commitment from the customer and our people, inspired and encouraged from top management to field operators can ensure this result. It is important that all parties work together collaboratively. The strong commitment and value coming from both sides and placed on safety is responsible for this great result.

Left; Vale Goro New Caledonia site Milestone in Safety Sharing Success International

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Tall Stack Cathodic Protection System Customer

Nyrstar Port Pirie

Name Location

Nyrstar Port Pirie Alliance Adelaide and Port Pirie, South Australia, Australia

What was the need?

During November this year, Anode Engineering mobilised to site under the direction of the Nyrstar WorleyParsons Projects Alliance (NWPA) to carry out repairs to the Tall Stack Cathodic Protection system. This included the replacement of the existing anodes.

The Tall Stack is the main stack for the Port Pirie Site. Its function is to remove fume and sulphur dioxide emissions from the Sinter Plant, Refinery and Blast Furnace via the bag houses. The stack is 203m in height and was commissioned in 1979. The Tall Stack is constructed from reinforced concrete and is internally lined with refractory bricks.

What did we do?

Supporting the stack is a reinforced concrete pile cap with 442 ‘bare steel’ piles. These 24m long piles are protected from corrosion by an ‘impressed current’ Cathodic Protection (CP) system. The CP system consists of 28 anode boreholes (with 8 anodes per borehole and 24m in length), in which current and voltage are controlled and adjusted by a rectifier. Also, as part of the CP System, is a series of 7 monitoring boreholes containing corrosion coupons and reference electrodes.

Corrosion of a metal is an electrochemical reaction between metal and its environment, resulting in wastage of metal. In this case, corrosion is from the steel pile buried in the soil which is exposed to the corrosive salt water medium in the water table. Corrosion is mitigated by utilising cathodic protection on the buried pile, which is achieved by applying a direct current flowing in the opposite direction to the original corrosion current flow, thus preventing the natural tendency of the metal to react with its environment. The impressed current CP system uses an external direct current power source to provide the driving voltage for the protective current between the pile and anode. The original system was installed at the construction stage of the Tall Stack in the late 70’s.

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Sharing Success International Tall Stack Cathodic Protection System

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

Anode Engineering, with the help of McMahons Services under the direction of the Alliance team removed the remains of the old anodes and replaced these with upgraded anodes that have an expected life in excess of 25 yrs. This was done by pumping water down the anode bores which in turn forces the carbon packing of the anodes up and out of these bores. The new anodes were then installed and packed in with a carbon packing. This system was partially installed in 2013 and is to be completed in 2014.

Benefits that will be realized by the customer on completion of this project are the longer life of their cathodic protection. The chlorine extraction system has also been upgraded to help protect and prolong the life of the anodes. The rectifier was replaced in order to allow for a more reliable system. All these modifications and upgrades will contribute to the tall stacks’ lifecycle.

Who was involved?

Dario Novak (Improve Relationship Manager) and the Nyrstar alliance team.

What did we learn?

Chlorine extraction is critical to this project. The chlorine fan impellers had failed to operate and were not noticed because the motors continued to run. The corrosion of the fan impellers was caused by chlorine fumes.

Liquid Pitch Tank Cleaning and Heating System Replacement Customer

Confidential

Name Location

Confidential Kitimat, British Columbia, Canada

What was the need?

The plant utilizes a Heat Transfer Medium (HTM) oil filled coil for maintaining anode paste pitch in its liquid state. Over time, and due to unintentional overheating, pitch becomes coked onto and around the outside surface of the heating coil, reducing the system’s heat transfer capability and negatively impacting the vessel’s storage capacity of usable pitch. As a result, each liquid pitch tank must be emptied and cleaned, the cokified pitch disposed, and the HTM piping replaced on a 1015 year frequency in order to re-establish the desired process conditions.

What did we do?

The WorleyParsons team was responsible for complete Engineering, Procurement, and Construction Management (EPCM) services for the mechanical cleaning of the tank, cokified pitch disposal, and HTM piping replacement. We designed HTM piping system improvements, prepared scope of work and bid document packages, assisted the client in the securing of contracts with suitable service providers, and managed the construction according to the client’s contractor management program through to completion.

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

Two tanks were cleaned with a total removal and disposal mass of ~1700 MT of unusable cokified pitch, increasing the tanks’ usable paste pitch inventory by approximately 19%. The replacement of the HTM heating coil allowed for the reestablishment of the system temperature control, the subsequent elimination of the pitch coking condition, and a resultant reduction in the heating energy requirement by ~USD$80,000-$100,000 annually. During execution, weld defects in the original tank construction were identified. The WorleyParsons team quickly identified the concern, reviewed the applicable codes, regulations and standards, and promptly identified to the client the repair requirements, options and a proposed execution strategy. As a result, the team was awarded an additional contract to manage the non-destructive examination and repair of the original tank welds to meet requirements of the governing regulations.

Who was involved?

The WorleyParsons team included: Mel Gray (Improve Manager), Chad Fournier (Project Manager), Luke Wardle (Project Manager) and David Jens (Construction Coordinator).

What did we learn?

There were no HSE incidents on the project and the pitch was disposed properly according to environmental requirements.

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1) Cut-out in Tank Wall and Removal of Cokified Pitch

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2) New Heater Coils Inside the Pitch Tank Liquid Pitch Tank Cleaning Sharing Success International

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Steam Turbine Overspeed Trip Retrofit Customer

Syncrude Canada Limited

Name Location

CoSyn Fort McMurray, Canada

What was the need?

Who was involved?

Incidents had been reported globally where mechanical overspeed trip systems failed during tests resulting in turbine disintegration and causing casualties. Present industry practice is to adopt new systems or update existing mechanical systems to electronic overspeed trip system protection which allow the overspeed trip tests to be performed at reduced speeds, thus minimizing risks associated with trip testing.

The overall effort was led by CoSyn’s Gord Holowach. During the evaluation/design phase he had strong support from his Area Discipline Lead (ADL) – Bernie Laroucque, Jonathon Lee for review of the hydraulic modeling, and Albert Lee for process and the steady-state report. CoSyn’s piping and structural groups were also actively involved in the alternative evaluations and subsequent redesigns.

Syncrude required all steam turbines with mechanical overspeed trip systems be upgraded to independent electronic overspeed trip (IEOST) systems. The response time for the overspeed protection system should meet the requirements stipulated in American Petroleum Institute (API) Standard 612.

The replacement trip blocks were provided by a committed vendor, without whose efforts, success would not have been achieved.

Seven months prior to the 2012 turnaround, the Original Equipment Manufacturer (OEM) of the turbines informed CoSyn/Syncrude that the design of their new hydraulic trip block could not meet the API requirement.

What did we do?

The CoSyn team carried out hydraulic modeling and issued a complete study report validating the performance of the selected non-OEM trip block. The entire effort of Material Requisitions development, bid evaluation, selecting trip block vendor, shop drawing review and inspection was led by the CoSyn automation group and the balance of project integrated team.

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

With the new design, CoSyn was able to comply with API standards where the OEM could not meet the requirement with their equipment and keep the original required on site date meeting customer needs.

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Sharing Success International Steam Turbine Overspeed Trip Retrofit

Syncrude’s integrated project team members (Production, Technical and Maintenance) participated closely with the Project Team providing promptly feedback and approval.

What did we learn?

Communicate with customers immediately when problems surface. Align the Develop alternate solutions in advance to mediate high risk elements. Think ‘outside the box’ when major project problems arise to .

Steam Turbine Overspeed Trip Retrofit Sharing Success International

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E1102 into Kerosene Service Project Customer

ExxonMobil (Mobil Refining Australia)

Name Location

Mobil CME Alliance (Construction, Maintenance and Engineering) Melbourne, Australia

What was the need?

Who was involved?

The Mobil Altona Refinery wanted to increase jet fuel production to meet growing demand from Melbourne Airport.

Slade Davis (Project Executive), Alex Zeltsvas (Project Manager), David Sinclair (Chief Mechanical Engineer), Travis Milgate (Lead Mechanical Engineer), Scott Mansfield (Mechanical Engineer), Greg Wittison (Lead Structural Designer), Anil Verma (Lead Process Engineer), Aldo Madrusan (Project Accountant), Lucas Young (Senior Piping Designer), Eloise Gordon & Nadia Kosta (Senior Civil/Structural Engineer), Lata Kompella (Senior Instrumentation & Control Engineer), Kamal Gattu, Steve Maheras and Scott Pritchard (Construction Management).

The customer identified that the E1102 (heat exchanger in the Light Virgin Gas Oil [LVGO]) train) was underutilised and could be used to alleviate a kerosene cooling constraint.

Implementing the project was estimated to enable a 20% increase in jet fuel production.

What did we do?

The project commenced in January 2012 as a Fast Track High Priority Project for Mobil.

Work included; heat exchanger configuration, thermal performance of heat exchangers, flow balancing, hydraulics for kerosene rundown, sampling point, provision for CSO valves, HAZOP, instrument data sheets, waivers, installed stopples, and pipe stress analysis.

Structural fireproofing was also required for each pipe support and the team also designed and installed thermowells, a temperature indicator and a temperature transmitter.

Stopples and hot tap was conducted by Furmanite Australia and spring supports were supplied by Tyco and manufactured in Germany.

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

The E1102 was successfully commissioned within 11 months and was 15% under budget with a Total Installed Cost of AUD1.2 million.

The team delivered a flawless execution and commissioning with no personal injuries or process safety issues.

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Sharing Success International E1102 into Kerosene Service Project

What did we learn?

The team ensured that weekly engineering design and construction progress meetings were held. These were arranged by WorleyParsons and approved by Mobil. With the time spent together the team developed a strong bond and a clear understanding of the task at hand. This was particularly evident between the WorleyParsons project manager/Mobil Project Executive/Transfield Construction team.

WorleyParsons engineering coordinated work to provide continuity between disciplines and supported each other to complete the work in the dedicated timeframe.

Main: 2-Crude Distllation Unit, Insert: Hot tap installation arrangement

E1102 into Kerosene Service Project Sharing Success International

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Pressure Safety Valve Project Customer

Syncrude Canada Limited

Name Location

CoSyn Fort McMurray, Canada

What was the need?

Four months prior to a unit commissioning, Syncrude recognized the need of an additional large size pressure safety valve (PSV) that would take months to procure. There were also schedule and construction challenges due to the plant commissioning date and space availability.

We quickly confirmed the stakeholder’s business need; reconfirmed/reduced the relief load to use a smaller PSV and produced procurement (Material Requisition), six IFC Engineering Work Packages, and an ABSA (Alberta Boilers Safety Association) registration package combining the scopes of the balance of the project.

CoSyn mobilized a multiple disciplines team from both site and home offices working seamlessly with Syncrude stakeholders (project management, construction, operation and technical) and third party stakeholders (PSV vendors and ABSA Regulatory) in planning, review and approval for the proposed solution.

Customer Feedback:

• Reduced total installation cost by re-routing the piping to avoid platform modification • Eliminated a complex field weld by re-routing the PSV inlet line. This eliminated a construction risk • Reduced relief load by working with Operation seamlessly.

This resulted in a smaller PSV for schedule and constructability improvement • Combining the ABSA packages to include the scope from the project streamlined the application/approval process

Who was involved?

The CoSyn team members included process, structure, piping engineer, piping, electrical and automation. The Customer team members included project management, operation, process engineer and construction specialist. The PSV vendor and ABSA approved this modification.

On behalf of the Management Team, thank you for the rapid response and deployment of engineering resources to expedite engineering to protect the plant from overpressure…

What did we learn?

Thank you for CoSyn’s support in this Holiday Season when many are also focused on time with family.

• Prompt feedback from vendor, field, operation, and construction

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Syncrude completed the commissioning and returned to operation on time to meet the schedule. CoSyn did not receive any Request For Information (RFIs) during construction.

Project Innovations/Value Creation:

What did we do?

“

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

Sharing Success International Pressure Safety Valve Project

The essential factors required to execute any project, especially in this case are: • Identify key stakeholders and keep them engaged and focused on priority • Fast tracking but not by-passing any process/quality step

• The right mixed of experience and knowledge resources • To communicate timely and efficiently

Planned Pohokura Shutdown Assurance Steps Customer

Shell Exploration New Zealand Limited (SENZL)

Name Location

Pohokura Shutdown Northern Taranaki, New Zealand

What was the need?

Partial or total shutdowns are always carefully planned to make sure all necessary projects and actions are strictly delivered within the shutdown timeframe. Shell Exploration New Zealand Limited (SENZL) was preparing for a planned, full plant shutdown. As part of this planning, our customer needed to ensure absolute integrity in documentation and flow-of-work for their Pohokura hydrocarbons processing plant at all times.

SENZL required a process to coordinate the preparation and execution phases of a 26,000 work hour, 14 day, 24/7 shutdown at Pohokura.

Pohokura, in Northern Taranaki is New Zealand’s largest natural gas resource producing about 40% of the country’s natural gas and a significant quantity of condensate. SENZL operates the field and makes safety and caring for the environment their first priority on behalf of joint venture partners.

What did we do?

Our people worked integratedly with SENZL to develop innovative tools to effectively manage the preparation and execution planning phases of this full plant shutdown. Our team knows most systems work best if kept simple rather than complex. With that in mind they generated a visible colour coded gated work pack system to hold all work documentation. Each workpack would only move to the next coloured gate after successful completion of the current stage.

Along with this, an Andon (visual signal) board, typically used in manufacturing was used. This recorded agreed actions for the day/ week and provided everybody with an overview of the project.

At a glance you would see the status of work and any issues flagged. Visual boards were also adopted in the pre-works and execution of events on site. Contractors were bought in early so they understood the process and work to be undertaken during the execution phase.

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1) Pre-shutdown Andon

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

The customer’s plant was brought back on line 20 hours ahead of schedule despite losing two days due to bad weather. Collaboration of the process and tools between the customer, shutdown planning team and contractors were very positive. The shutdown planning was carried out by a smaller team than previous shutdowns and this engaged team provided a positive culture to the process when moving into the execution phase.

The use of visual tools meant the contractor workforce was accountable and engaged in the process. All KPIs (HSE, schedule, quality, cost) were met, making for very happy customer and contractor workforce. These learnings have since been distributed into other areas of the business.

Who was involved?

John McDonald (SENZL Pohokura Tank Farms Activity Manager) Paul Brown (SENZL Pohokura Operations Engineer), Craig Moles (Shutdown Coordinator), Duncan Fraser (Maintenance Supervisor), Duncan Scott, (Senior Mechanical Engineer), Phil Smith, (Shutdown Manager Pohokura) and Mark Newsome (Construction Manager).

What did we learn?

Communication is key and having everything visible for all to see meant there was no hiding; accountability and ownership of tasks and activities set was very empowering to all involved. The team culture was established during the planning phase, which moved straight into the pre-shutdown and execution works.

Structured pre-shutdown planning meant all permits and Job Hazard Asssessments were reviewed by SENZL’s operations department. This enabled additional checks and balances to take place pre-shutdown, reducing risk during execution. Visual boards were placed at the work front so the day’s activities could be discussed between all contractors making it possible for conflicts to be resolved before the work was started.

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3)

2) Pre-shutdown Gated Board

3) Execution Gated Board

Planned Pohokura Shutdown Assurance Steps Sharing Success International

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Model of the tubesheet, vendor design weight and tube friction

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Sharing Success International Complex Termperature and Stress Element

Complex Temperature and Stress Element: Failure Analysis and Redesign Customer

Syncrude Canada Limited

Name Location

CoSyn Fort McMurray, Canada

What was the need?

During a turnaround on the Syncrudes CO boilers, four intermediate tubesheets had failed (as seen in the photograph below). WorleyParsons CoSyn office (an Improve alliance with Syncrude) was requested to lead the analysis to determine a root cause of the failure, select proper material for the new tubesheets and coordinate the redesign of a new tubesheet capable of withstanding the harsh temperature and stress conditions found inside the boilers to be installed during the next scheduled maintenance outage

What did we do?

CoSyn’s Advanced Analysis Group (AAG) paired up with the AAG in Melbourne, Australia to study the failure more closely.

These AAG teams worked together in creating models (Finite Element Analysis and Solid) of the tube supports which could simulate the as-found conditions leading to the root cause of the failures. The team then worked together to create a new tube support design which significantly increase the design life of the tube supports. In parallel, CoSyn selected a foundry that could produce castings of the required size and metallurgy, and coordinated the reviews with Syncrude and the foundry to ensure quality castings of the new designs.

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

During the next maintenance outage, the old tubesheets were replaced with the newly designed tubesheets. The boilers were commissioned, started up and have been running successfully in last 30 months without any sign of failure.

WorleyParsons CoSyn delivered tremendous value to Syncrude’s operational reliability by identifying the root cause of the failure and addressing the root cause when redesigning the tubesheets to minimize failure in the future.

Who was involved?

Syncrude, CoSyn AAG and the Melbourne AAG

What did we learn?

It is imperative for complex and technically challenging projects such as this one that the root cause of the failure is determined, verified and even re-verified. It is also necessary to recognize the need and reach out to the vast resources available in the WorleyParsons organization to get the expertise required to complete the task at hand. Last but not least, coordination and communication are keys to the success. Coordinating the expertise and resources across two organizations and three offices is just as critical to the success of the project as was the technical details of the failure analysis and redesign.

Complex Termperature and Stress Element Sharing Success International

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Advanced Work Packaging Customer

Syncrude Canada Limited

Name Location

CoSyn Fort McMurray, Canada

What was the need?

The CoSyn Engineering Alliance has been in place for 22 years. We provide Engineering, Procurement and Construction Supervision services. The Engineering teams provide construction/execution with Engineering Work Packages for implementation in the field.

Last year, our client requested that we propose how to supply/ support Construction Work Packages (CWP) to enable better planning for workface activities. This package provides additional information that supports the execution contractor’s foreman and planners.

What did we do?

CoSyn Technology assessed all the different stakeholder needs (major projects, base plant projects and maintenance) and leveraged WorleyParsons Global templates and processes to suggest a solution to Syncrude. Testing of the process flows and deliverable template was completed on a ‘pilot’ project and now is being supported to roll out on all work.

Strong support was needed from the Project Development and Executions Manager and Site Construction Manager to keep the proposal alive, as it represented an atypical decision requirement from the client. Patience, coupled with a credible plan and diligent testing, won out and the CWP is now being incorporated as a standard deliverable.

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Sharing Success International Advanced Work Packaging

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

We are now staffing a Home Office Construction Team that will deliver the CWP’s by leveraging the projects Engineering Discipline Teams. This approach leverages strong constructor sense with Engineering know-how to help provide a better integrated solution.

Our ability to support the client in the area of “non-core engineering services” has been well received. Even as the home office construction work moves forward into full scale production, the team is expected to grow substantially to provide all teams with the necessary packages for delivery to execution.

Who was involved?

Joe Hobbs (Administration Department Head) and Joseph Alexandrovitch (Senior Estimator for Project Controls).

What did we learn?

By providing additional information to help the constructor perform their tasks saves the dollars in the field (the largest expenditures occur at this time). We are able to provide an additional level of understanding of their work to our Engineering and Design staff while engaging the execution contractor earlier to leverage their in field know-how. A true win/win for the all involved.

Silos C and D Refurbishment Customer

Confidential

Name Location

Confidential British Columbia, Canada

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2)

3)

1) Material accumulated at the bottom of the silos, 2) Finalizing installation of new sloped floor and airslides inside silo 3) Nine storage silos

What was the need?

Over the 50 year+ lifetime of the silo, hardened material had accumulated in the bottom of the 9 x 10,000 Mt Silos, substantially reducing their effective storage capacity. To support future feed requirements, the silos needed to be upgraded to eliminate the dead storage capacity.

What did we do?

The WorleyParsons team was responsible for Engineering, Procurement, and Construction Management (EPCM) services for the design and installation of an improved material withdrawal system including new sloped floors and a doubling of the number of airslides. We assisted the customer’s procurement department with securing contracts with suitable service providers and then managed the cleaning and construction according to the customer’s contractor management program. We worked closely with the customer’s teams to recycle as much flowable material back into the process as possible, which significantly reduced the amount of non-flowing material for disposal.

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

Silos C and D were returned to full operating capacity with a 25% increase in the material discharge rate (200 to 250 Mtph).

Of the 6,200 Mt of material removed from the two silos, 4,700 Mt was returned to the product stream for production, which represents an added value of approximately USD 1M to our customer.

There were no lost time safety incidents on the project and the unusable material was disposed properly according to environmental requirements.

Who was involved?

The WorleyParsons team included Mel Gray (Improve Manager), Tony Padley (Project Manager), and Rick Reinert (Construction Coordinator).

What did we learn?

Our ability to coordinate effectively with our customer’s Operations and Environmental groups was instrumental in optimizing the quantity of material returned to the process.

This added significant extra value to our customer and the methodology developed will be applied to the next three silos.

Silos C and D Refurbishment Sharing Success International

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Lilly’s Bridge Life Extension Customer

Boyne Smelter Ltd (BSL)

Name Location

BSL Improve Boyne Island, Queensland, Australia

What was the need?

The support piles for Lilly’s Bridge at BSL Haul Road were significantly corroded on the sections exposed to the tides.

Lilly’s Bridge mainly carries haul road trucks for metal delivery to wharf and also pitch tankers. The bridge also carries the site’s natural gas line, the haul road conveyor system and various data and communication cables.

Lilly’s Bridge is a critical infrastructure asset in BSL’s logistics chain. For BSL to continue operations, it was essential for the team to refurbish the heavily corroded piles that supported the bridge. Should the bridge structure fall into disrepair or fail, it would severely impact haul road traffic and services.

The project team needed to devise a solution that allowed for the sleeving of piles by welding reinforcing steel plates and other options to be considered during pre-feasibility state that required high capital investment.

What did we do?

After researching a number of the pontoon walkways used in marinas across Australia, Syed Quadri and his team designed a purpose built flotation platform. This flotation platform was designed to give workers a stable area to work which was secured and wrapped around two steel piles at a time, giving workers two work fronts. The design also allowed for the movement of the platform based on tidal changes.

The estimated costs of this option, including the welding of reinforced steel plates, were AUD 195,000 representing a saving in excess of AUD 1 million relative to the other options.

The secondary benefit realised was the use of the flotation platform to fix the deteriorating outer (cathodic) protection layer, and other associated infrastructure, which otherwise would have cost an estimated AUD 20,000 - 30,000.

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

The successful delivery of this project has extended the life of the bridge by 15 years. This preventative action has eliminated the risk of the bridge becoming unfit for use, with only low cost repairs now needed to strengthen the bridge to its original design. Furthermore, it has avoided BSL having to reduce the maximum axle load on the road truck which would have impacted on their metal transportation. Additional repair costs on the bridge beams and headstocks have been eliminated.

Also, BSL now has a maintenance flotation platform for future pile inspections and maintenance works.

Overall, BSL saved AUD 640,000 in 2013 based on downgrading of the bridge capacity.

Who was involved?

Syed Quadri (Project Engineer) and Duncan Moorhouse (Designer).

What did we learn?

It was possible to deliver good value for money to the customer through innovation and research. Without meticulous planning and knowledge of tidal impacts, it would not have been possible to deliver the project within budget and on schedule. Though the work was done at low cost, the safety factors in design were paramount during the detail design phase.

Lilly’s Bridge Floatation Platform, Conceptual Design 20

Sharing Success International Lilly’s Bridge Life Extension

Lilly’s Bridge Life Extension Sharing Success International

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Collaboration, Value Generation and Resulting Savings Customer

Confidential

Name Location

General Engineering Services Agreement Bahrain

What was the need?

WorleyParsons has been supporting a key customer in the Kingdom of Bahrain since 2010. The customer has been implementing a plan for significant redevelopment of existing assets to increase oil and gas production. WorleyParsons has supported the redevelopment works through provision of a variety of services including Project Management, Engineering, Project Controls, Procurement and Construction and Commissioning both in the WorleyParsons office and within the customer’s own site office.

WorleyParsons provided a team of experienced Project Controls and Construction personnel to support the management of construction contractors including review of changes notices and claims associated with a variety of projects across related to the redevelopment program.

What did we do?

The WorleyParsons site based team worked with the customer Contracts, Controls and Construction groups as well as liaised directly with relevant contractors to support the review and processing approval of contractor changes notices and claims.

Using a proactive approach including audits, field inspections, WorleyParsons database review, contract review, close collaboration and detailed evaluation the WorleyParsons team was able to objectively review and negotiate several contractor claims to acceptable levels. The approach by the WorleyParsons team members led to revision of quantities and overall claim values in areas including but not limited to: • Civil cut and fill and site grading • Non-Destructive Testing and site grading works.

• New pipeline installations • Compressor Station Modifications

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Sharing Success International Collaboration, Value Generation

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

On behalf of the customer the WorleyParsons site team was able to objectively substantiate and negotiate major reductions in several key construction contract claims. From the period April 2012 to May 2013 savings of over USD8 million had been delivered.

Who was involved?

The following WorleyParsons personnel were involved in conducting the claim processing and reviews and quantifying them for reviewing and approval with the customer. Darryl Duell (Improve Contract Manager), Florian Ionescu (Construction Superintendent), Dennis Richardson (Estimating Manager), Ireneo Camina (QS) and Seeni Shuraik (Sr Cost Controller).

What did we learn?

Opportunities and savings for customers can come from a variety of areas of the WorleyParsons business and not just traditional project management and engineering areas.

The collaborative involvement of team members from several areas including construction, estimating, QS and cost control enabled a more detailed, thorough, accurate and objective approach to the claims review and negotiation process.

The strong regional and local knowledge and experience of the WorleyParsons team assisted greatly with the accurate review of the claims being processed.

The close proximity of the team to the customer, contractors and construction sites not only enabled open and communication but also assisted in detailed understanding of site constraints and conditions relevant to the objective review of the claims.

New Benchmark Modular Design Customer

Shell

Name Location

EP/EPCM Onshore Americas Enterprise Framework Agreement Canada

What was the need?

A Shell Generation 2 Gas Plant that had been designed and was under construction had a Total Installed Cost that trended towards ‘beyond the rule-of-thumb costs’ for a facility of its throughput. This would make this plant far more costly than would be sustainable given the economics of gas production and transportation.

The Generation 2 Gas Plant needed to be built to undertake intensive development of gas reserves in the same area over the next decade. Shell turned to WorleyParsons to provide a design and execution plan that would cost less than the industry standard and which could be used as a template by Shell locally and globally. WorleyParsons’ scope of work included conceptual engineering, an optimized plot plan, execution plan emphasizing modularization and a cost estimate, all using good practice and WorleyParsons standards. As cost reduction and safety were key drivers, reducing the on-site construction workload was important.

The next step will be a gap analysis referencing those standards and some discussion with Shell around some of their current standards.

What did we do?

We worked collaboratively with Shell, first to understand their full business drivers, then to maintain the proper context for alternatives and solutions for the current state of the plant.

We relied on our internal expertise for process design, layout and construction planning. Working together, our leads looked to optimize the big picture, including process and maintenance requirements, keep the footprint of the finished plant to a minimum and ensure simple access for placing modules during construction.

We took into account heavy lifts, seasonal restrictions on transportation of heavy loads, and the need for a contracting plan. With our scope and execution plan optimized, we prepared a +25% -15% cost estimate and Level 3 schedule.

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

Our resulting design and execution plan beat the USD$200 million industry benchmark for conventional gas design by more than 10% and undercut the existing project by 65%.

Our plot plan uses 40% of the space of the current plant. Our modularization approach moved 45%of normal site hours to module yards, improving cost, schedule, quality and safety.

The fact that the process, layout and construction innovations happened together greatly increased the odds of them being successfully implemented.

The delivery of our front end work cost less than Shell had approved, with our Select+ team coming in under budget.

Who was involved?

The Select+ Team. Special mentions goes to John Foxcroft for Process Design, Bill Spaagaren for Plot Plan, Brian Scott for Construction and Derek Raughton (Improve Contract Manager).

What did we learn?

It is important to work with the customer to understand the true business needs that are behind the customer’s request for services. Had we run with what we first understood, we would have been aiming for the wrong target.

Collaboration is very important, not only to generate better ideas, but to improve the survivability of new ideas once they have to be introduced to a broader group. This is true for work within the project team (eg customer representatives, process, layout and construction) and between the integrated team and the customers’ arms-length organization.

Having a customer who genuinely encourages a challenge to standard practices is an excellent opportunity for fresh thinking.

Left: Gas plant New Benchmark Modular Design Sharing Success International

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Sharing Success International Edition, 2013

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