Q1 2004
Featuring:
Medgaz Pipeline Project INTEC Saga Note From The CEO INTEC Timeline
Conception Through Maturity McKeehan Challenge Award INTEC Christmas Employees of the Quarter
The Deepwater Medgaz Pipeline Project
INTEC (UK) was awarded the front-end engineering design contract (FEED) for the MEDGAZ offshore Mediterranean Sea, pipeline project in August 2003. MEDGAZ (a consortium including Sonatrach, Algeria's national oil company; CEPSA, BP, and TOTAL), will install two 24-inch pipelines across the Mediterranean Sea transporting natural gas from Algeria to Europe with landfall on the southern coast of Spain. The total offshore distance is 200 km, and the central section of the pipeline reaches water depths of 2,160 m (7,087 ft).

INTEC's scope of work includes design of the offshore pipeline, shore approaches and short onshore pipeline sections to the onshore terminals at either end of the offshore pipeline. The project is being executed at INTEC's Working (UK) office, and is scheduled for completion in February 2004.

A number of difficult challenges are being met, including a FEED schedule that required project completion within an intensive 6 months period. We were able too accommodate the short schedule by making best use of INTEC’s global existing experience. The Working project team was strengthened with three secondees from the Houston office, that is also providing remote support for material selection and deepwater repair activities. The INTEC Delft office is providing general support with BlueStream experience dynamic pipelay analysis. INTEC Buenos Aires is performing the onshore pipeline design.

INTEC is also engaging a number of specialist subcontractors including Geohazard assessment, preparation of sitespecific Met-Ocean design criteria, HSE studies, and preparation of an Environmental Impact Assessment.

Notable aspects of the project included:

  • Design of the pipeline to DNV OS-F101, including review of the current market status regarding material and fabrication factors that affect the collapse behavior of large diameter submarine pipelines.
  • The area crossed by the pipeline has complex morphology comprising narrow continental shelf areas, steep marginal slopes, submarine valleys, ridges and seamounts. Route selection performed during previous project phases has been evaluated and validated during the current FEED phase to include the results of new bathymetric and geotechnical survey and provide detailed in-place stress analysis of the entire route to characterize areas requiring intervention.
  • The Western Mediterranean has a documented history of seismic activity, with earthquake recurrence potentially responsible for seabed displacement and the triggering of significant submarine landslides. The MEDGAZ pipeline route crosses an area at the Habibas Escarpment region of the Algerian margin known as the Yusuf Fault, which is characterized by potentially strong earthquake activity. This previously underestimated fault system has been re-evaluated as a primary input in the assessment of geohazard risk to the pipeline. Limited areas of the pipeline route were shown to be susceptible to earthquake-induced liquefaction, with locally steep seafloor slopes on and adjacent to the pipeline route giving rise to the potential for slope failure and mass sediment movement. During FEED, the regional tectonic character and potential for seismically triggered events influencing the pipeline were characterized in terms of their morphology and probability, with potential impact to pipeline integrity assessed using structural finite element modeling.
  • Evaluation of the hot end of the pipeline in Algeria where upheaval and, in particular, lateral buckling phenomena were observed. Finite element analysis was used to evaluate buckling effects and extent, and a range of potential intervention methods was investigated.
  • A full Environmental Impact Assessment has been prepared in collaboration with METOC, a UK based environmental consultancy. The pipeline route passes through a national park near shore and onshore Spain, and there are considerable consequential environmental sensitivities.
Although INTEC's original FEED work scope is nearing completion, several areas of design development have emerged which should ensure that INTEC remain involved with the project well into 2004.
The INTEC Saga
At the occasion of my retirement I received a book from Harry Lindroos, a translation in English of the Kalevala, the Finnish Epic that contains the sagas and myths about the origins of the world and of the Finnish people. Since Harry was quite instrumental in 1983/4 in converting INTEC from an idea to reality, I decided to write a brief "INTEC Saga" using the same format and meter, which fortunately doesn't have to rhyme.

In a long forgotten era
When the mountains were much younger,
When the fishes were a-jumping,
And the cotton always high
Four men lived in greater Houston
Dreaming of some independence
Since the master they were serving
Was not making good on promise

One was from the Emerald Island
Where the whiskey is aplenty
And the people warm and friendly
While the earth is cold and damp
One was from the lower countries
Tall as others in that region,
Since the short ones drowned in flooding

That occurs there now and then.
Two were from across the ocean
Where the world is new and vibrant
From Nebraska and from New York,
Via Florida the latter

Thus they set out, started planning
Doing offshore engineering;
Working projects with a challenge,
Building up a reputation
For good work and fine employees,
Sharing vision and the profits.
But so they could meet this challenge
On a quest they then departed
For the funds that were required:
only sunrise comes for nothing

There amidst the rocks of Finland
Where the darkness often lingers
And the snow falls on the water
That the frost has turned to solid,
But where also at midsummer
Sunlight turns the night to day, and
People singing and rejoicing,
Running naked through the forest,
Drinking potent koskinkorva,
Dancing round the fires burning.

There he lived the Lindroos Harry
Building ships for eastern neighbors
Through the ice these went a-breaking,
Clearing paths for man and commerce.
Thus they break the isolation
Of a frozen Gulf of Finland,
And the chilly Russian Arctic.
Through the Kara Gate they go then,
Or the narrow strait of Vaigach

Willem then called Harry Lindroos
See if Valmet would be willing
To support a fledgling start-up
Selling expert engineering
To the oil and gas behemoths
And the smaller independents.
Since the Russian trade was ailing,
And a new direction needed,
This idea soon resonated,

And we met with Airaksinen,
And with Hannu Vaapamies.
And the bosses gave approval,
Matti Kankanpaa included.

Then there were negotiations
With attorneys sharp as sickles,
Who saw problems and disasters.
But the engineers prevailing,
Using logic and excitement,
Soon shook hands and signed the papers
And the deal was done so swiftly.
To the sauna they departed,
In the searing heat they wallowed
Whipping skin with fresh-cut saplings,
Then to dip in ice-cold water,
Chasing moisture from their bodies,
So the beer would taste the better,
Celebrating this new venture.

Here they were, the Four Consultants,
Argued some, then named it INTEC
Jan was their administrator.
They hired people, ordered paper,
Step-by step they started growing,
Brick-by-brick they built their wall.
In their office freshly painted,
They waited for the Holy Client
To send business and income.
But what came was something different
T'was a red coat with a summons
Charging them with misdemeanor
Breached fiduciary duty;
Drag’em in and hang’em higher!
Finns alerted to these mishaps
In support they came a-running,
Hiring even sharper lawyers.
And the judge, who heard the parties,
And the heinous accusations,
Spoke: "The cow has left the barn and
You will never see it back there,"
told accusers to go hither,
Leave the gang of four alone.

Off they were and built their business,
Working hard but making money
Was not easy as was hoped for.
Just as things were looking upwards,
Oil and gas went through the bottom,
Projects cancelled, budgets shriveled,
So the belts were tightened more.
With renewed determination
They sought other forms of income
Fiber optics, farming fishes,
Flogging many JIP's
This then kept the fires burning,
Even though the wood was soggy,
And the smoke made many teary.

Far away they looked for business,
Up the Amazon they ventured,
And in cold Canadian waters.
Taiwan terminals were conquered,
Slowly business got better.
Contracts happened, were completed,
Focusing on waters deeper,
Where the sunlight doesn't venture,
Scary creatures swim and slither.
There the gas and oil wells flourish
Needing trees, controls and flowlines,
And the trunklines back to daylight,
So the country can stay heated,
Or cool off, as the case may be.

Thus they did and INTEC prospered,
Grew in size and in locations,
Foreign lands, and distant oceans.
But for the faith of many Clients,
In the quality of INTEC,
And its sharp and helpful people,
They would not have been successful,
And the sun would not be shining.

Through travails and great successes
Gang of Four still hung together,
Doing what each one was best at,
Till they thought: where is this going?
And decided that the prospect
Of one dying in the saddle
Lacked distinct imagination,
So a long-term plan was crafted
To assure the life of INTEC,
independent of the Partners.
For a buyer they went looking,
who would see strategic plusses,
but leave well enough alone.
This quest took them many places
Till they found the best solution.

Heerema became the owner,
Known for big and deep construction
Of things fixed and also floating,
In the deep and stormy waters.

Then the Four as per agreement
A disappearing act they started.
First the husker from Nebraska,
Then the Irishman among them,
Third the white-haired man from Holland,
Leaving only Dave McKeehan
Of the early pioneers.

New blood to the top has risen,
Making sure the group is vibrant,
Visionary and creative,
Always mindful of the values
That came from the first beginning,
So that at the age of twenty
INTEC is assured of future,
Taking on the toughest projects
At the greatest depths of oceans,
And the highest mountains peaks.

Some of us who have departed
For the green fields of retirement
On the horse that we rode in on.
From the distance we are waving
To employees and old friends who
Helped get INTEC into orbit,
Made sure that the group kept growing.
At this juncture we must thank them,
Since without their solid effort,
And the faith that good will happen,
There would hardly be a party
For our company's adulthood.

Here then is the INTEC saga
Which we know will sure continue
Future chapters will be written
Of heroic deeds and conquests
To be told for generations.
But for now, a celebration.
Raise ye glasses, sing the anthems
Be they heard in all the places
Where there is an INTEC presence,
And our wish: ad multos annos!

By: Willem Timmermans

A Note from the CEO
Flying Solo?

As I pondered what to write about in my first 'Note from the CEO' many thoughts ricocheted across my cranial cavity. The first was that I'm no writer and certainly not up to the standards Willem set. I also wrestled with the notion that I am trying to fill the impossibly large shoes of a man whose name is synonymous with the offshore pipelay industry. Replacing him, of course, was never an option. Bringing my own toolbox to the job is, in reality, the only option available. To smooth my entry, I enjoyed the benefit of a brief transition period with Willem, for which I am grateful. Besides the opportunity to get to know Willem better, I gained some insights into the workings of INTEC. But even better, I got the history of INTEC from someone who lived it -- no actually created it. While appreciated now, I'm sure these insights will serve me well into the future in ways unknowable.

When discussing INTEC and my new role with a friend, he remarked "So on January 1 you'll be flying solo." It then hit me between the eyes - I won't have Willem to consult with on the inevitable issues that arise. But am I really flying solo? Fortunately for me, and unlike real pilots, I do not have to take the controls all alone. INTEC is full of experienced pilots in all areas. My first impressions of INTEC are really about the staff, the people who make up the fabric of this company. The caliber of individuals, the respect shown for each other

and our clients, the motivation and dedication on display here is all quite amazing. In fact it is a great comfort to me, as the new guy, to have such quality individuals available to support me as I learn the ropes. All corporate brochures splash the obligatory slogan 'People are our Greatest Asset' across the top of their glossy bromide laced pages. But few live up to the promise. As with any people-based business, you all are literally the assets, the only means of revenue generation. As such, you deserve to have the full attention and respect of the management of INTEC. And you do. In the myriad discussions I have had with the management of the company since first arriving in October one theme occurs over and over again. This is a place where employees are listened to and a place that endeavors to treat people right - that ranges from changing policies when they are seen as unfair to celebrating holidays together to demonstrating true concern for the well being of employees. All this I have seen just in the short time since I started. With still the perspective of an outsider, I can assure you that this attention is not at all common. Certainly not in the rough and tumble oil and gas industry where the reputation of most companies is quite the opposite.

This year will be filled with personal challenges for me to be sure. However, it's also my opportunity to get to know you all a little better and deepen my understanding of the things that really make INTEC unique. The market is picking up, the outlook is good, we have right the products and most of all the RIGHT people. Soooo - Flying Solo - No Way!

Johnny Reed
CEO

INTEC 20-Year Timeline
We thought it would be fun to celebrate INTEC's 20 years with a depiction of our history and growth. With only the slightest bit of poetic license we have arranged the significant events embedded in our history in a timeline. In proper engineering form, we have prepared the timeline on the basis of several assumptions. 1) Selected events are based on the impact they had on our growth into new technical areas as well as into new countries. 2) Dates are indicative of either the completion or the start date of works, depending on which event was most noteworthy at the time. In some cases an approximate mid-date is used. 3) The Company has carried a vision of technology and international growth. The regional offices that were established over time usually came only after prolonged, but often intermittent, work. The early development efforts are shown in dashed line format in contrast to the solid line format used after the formal establishment of a local office. 4) The Houston office was the center of growth starting with pipeline engineering. Complementary areas of technology were added as conditions warranted. Houston-based growth in technology areas is shown in black line with the dashed format used for preliminary efforts changing to the solid line when formal business units were established. 5) Thin lines are used to depict initiatives that were in some way subordinated to specific regional offices. 6) Not all initiatives resulted in long-term success. Interestingly, all but two thrived. 7) The timeline makes it look like we grew in a neatly planned and coordinated way. That's poetic license.

WWe hope you enjoy the 20-year timeline as much as we did putting it together! We look forward to 2004 and beyond with the anticipation that it will be every bit as exciting as the last 20 years.

View PDF Timeline (770KB)

INTEC Conception Through Maturity
I remember well the flight with Willem Timmermans to Calgary in the early eighties when the idea for INTEC was conceived, and the excitement of the subsequent discussions on how we could and would become the best at what we do. It wasn't too long after INTEC started up in March '84 that we discovered the harsh realities of trying to run an engineering company in the volatile oil and gas industry, and the rest of the eighties was spent in survival mode, paying the bills primarily by performing joint industry and other studies. As luck would have it, this period of 'paying our dues' gave INTEC a decided technological edge, particularly in deepwater, when the industry pendulum commenced its upswing. As the nineties progressed, INTEC grew at an extraordinary rate and became the established leader in engineering offshore pipelines, marine terminals and subsea production systems in deepwater and other frontier areas.

At the turn of the century the next area of growth for INTEC was EPCM of large projects and EPC. To accomplish this would require significant additional financial strength and, as a consequence, it was decided to seek outside ownership participation by a major reputable industry player. This resulted in the acquisition by the Heerema Group, which also provided for the orderly exit of the the original partners, including myself at the end of 2001. At a very recent function honoring Willem Timmerans on the occasion of his retirement, I was approached by a senior client representative for the largest deepwater development in the GOM. He said, "Jim, I really miss (I just knew he was going to tell me nice things about how INTEC wasn't the same since my departure; instead what he did say was) your wonderful, definitely best in Houston St. Patrick's Day parties!” More importantly, however, he went on to say "In the last two years, INTEC has performed superbly supervising the installation of our large diameter, deepwater GOM pipelines, entirely embodying the owner's perspective on such critical matters as construction deadlines and costs. I highly recommend INTEC as the best in class."

As INTEC celebrates its 20th Anniversary, it is evident that it has matured well and I'm reminded of the old adage: "there are horses for courses." As some of us move on to 'greener' pastures, Johnny Reed and his exceptionally capable team of thoroughbreds are well positioned to take on the challenges of the early 21st century.

Congratulations and Best Wishes!

The David S. McKeehan Challenge Award

We are pleased to announce a new award to individuals who best master a difficult challenge during the year.

A lump sum cash award will be presented each year to three employees who successfully meet an exceptional challenge in the workplace. This award will be referred to as the David S. McKeehan Challenge Award. Candidates will be considered from all areas within INTEC and from all offices.

Judging Panel: The evaluation and selection will be made by a team of five permanent, and two one-year term Judges. The evaluation of nominated candidates will be conducted during our October Planning Conference as an adjunct meeting of the Judging Panel. The basis of selection will be the highest scoring degree of difficulty multiplied by the degree of success, in context with what would generally be expected of the individual. The degree of difficulty of the challenge will be set by the judging panel on a scale of 1 to 10 with 10 being the most difficult in context with the classification of the individual. The challenge level set by the Judging Panel will also take into account the elements of consequences of failure, effort required, expertise required, entrepreneurial aspects, level of support provided, and style of execution. The difficulty level may consider whether the period of relevance was short, i.e. an outstanding field call under pressure, or long, i.e. a year of unrelenting effort to achieve an important solution. The degree of success will be set by the judging panel on a scale of 1 to 10 making the theoretical highest possible score 100.

The top three candidates will be announced during the Thanksgiving luncheon in November. The Judging panel will convene via telephone conference call to finalize the selection of the top candidate. The award to the top candidate will be announced and presented in Houston during the Christmas party. Airfare and transportation costs for all candidates to attend the Houston Christmas party will be provided. The two other shortlisted candidates will also receive a cash award.

INTEC Christmas Around the World

On December 13th, the INTEC Houston Christmas Party was held at Northgate Country Club. Once again the food, decorations, entertainment and socializing with coworkers outside of the office were superb. Mr. Timmermans gave his last Christmas Party speech as President of INTEC. While cleaning out his office for his impending retirement, Mr. Timmermans auctioned 25 items with the proceeds benefiting the Houston Special Occasions Committee. After a comedic description of each, they were auctioned off and the SOC collected $414.25. Among the items were a collection of paperclips, a rock from the Barents Sea, a Valmet Ski Cap, a 1000 Cruzados bill, and a 1985 INTEC Budget (won by our Chief Financial Officer, Marc Rieke). We wish the entire INTEC family a prosperous New Year.

Employees of the Quarter

We are pleased to recognize in this 20th anniversary issue, two of our earliest employees and most senior engineers as co-employees of the quarter.

Glenn Lanan
Glenn and his family attend his oldest daughter Colleen's recent graduation from Texas A&M (now down to just 2 kids in college!). A surprisingly large number of INTEC people will probably remember working with Glenn when Colleen was born. Glenn and Barbara moved to Houston from the University of Delaware and have both been employed in the energy business ever since. "It is hard to believe you can spend that much time engineering pipelines but I have rarely had to do the same thing twice." When not at the office, Glenn and Barbara enjoy travel, riding motorcycles and their jet ski, camping, swimming and assorted other activities.

Gene Mullee
Gene's working relationship with the INTEC Founders goes back to long before INTEC was formed. He started as an Engineer with Mr. Timmermans in Schiedam, Netherlands. His first job was to help build a Viking Piper, now known as the LB 200. Mr. Timmermans had a secretary,Yvonne, who Gene started dating, and they have now been married for 28 years! His career with the Founders led him all over the world–from the High Arctic to Tierra del Fuego near the Antarctic, to the deserts of the Middle East and jungles of Panamanian Republic. In between, there were some hardship locations such as Paris and Rio de Janeiro! He eventually followed the Founders to Houston, where he has been with INTEC continuously for 18 years.

Gene and Yvonne have three children–aged 24, 21 & 17 years–all based in the home they bought when they we arrived in Houston! Eldest daughter Tara worked at INTEC as a summer internist and is now a Journalist for the Woodlands Community Newspaper. Middle daughter Amanda is in UT Austin studying fine arts. Son Mark is a High School senior and wants to study Astronomy, possibly in Leiden, Netherlands. Yvonne is from Holland, and Gene is from Dublin, Ireland; they have tried to bring their children up with a mix of cultures from both of their homelands, while making them American as well!

Gene's passions include mountain hiking and biking. He hikes in Switzerland every other year, and in Colorado and Big Bend, Texas whenever he can get a chance. He does the MS 150 Houston-to-Austin bike ride regularly and plans to participate again this April on the BP team. Gene also takes Yoga classes at the INTEC offices, (a great stressbuster!). He is a Boy Scout leader and goes camping all over Texas every few months. Apart from muscle-powered sports, his other passions are Astronomy, reading, and learning foreign languages.

Why is he still in INTEC after 18 years? He subscribes to the INTEC Core Values, he likes the engineering challenges, and enjoys the stimulation of working with an eclectic bunch of people with such disparate backgrounds.

INTEC Engineering, Inc.
Intercontinental Building
15600 JFK Boulevard, 9th Floor
Houston, TX 77032, USA
tel: (281) 987-0800
Primary Fax: (281) 987-3838
Admin Fax: (281) 987-2002
e-mail: info@intec-hou.com
INTEC Engineering (SEA) SDN. BHD.
Suite 12.2, 12th Floor
Menara Aik Hua
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50200 Kuala Lumpur, Malaysia
Tel: +60 (3) 202-2488
Fax: +60 (3) 202-3488
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INTEC Engineering B.V.
Poortweg 14
2612 PA Delft, The Netherlands
P.O. Box 3178
2601 DD Delft, The Netherlands
tel: +31 (15) 256-5675
FAX: +31 (015) 256-0194
email: info@intec-delft.com
INTEC Engineering S.R.L.
Lavalle #465
Planta Baja
1047, Buenos Aires
Argentina
tel: +54 (1) 14 327-4120
FAX: +54 (1) 14 327-4121
email: info@intec-hou.com
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Adelaide House
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Perth, Western Australia 6000
tel: + 61 (8) 9220 9374
FAX: + 61 (8) 9325 9897
email: info@intec-hou.com