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| Q3 2005 | ||
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| THE PNG GAS PROJECT - LONGEST PIPELINE IN THE SOUTHERN HEMISPHERE |
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INTEC Engineering is currently working with Eos, a Joint Venture between Kellogg Brown & Root and WorleyParsons, on the Front End Engineering Design (FEED) of the PNG Gas Pipeline Project. INTEC is principally responsible for the offshore and landfall sections, which present considerable challenges related to constructability within an area of considerable environmental sensitivity, high currents, shallow water and seabed mobility.
To perform this work, INTEC has mobilized a team of engineers to Brisbane in Queensland, Australia to work within the Eos project team and alongside ExxonMobil's project team that is responsible for developing the Project. The Brisbane based team is also being supported by INTEC's engineering personnel in Perth, Western Australia.
The PNG Gas Project involves tapping large reserves of natural gas in PNG's southern Highlands and transporting the gas via a pipeline over 3,000 kilometers to customers in Australia. The pipeline will be the longest in the Southern Hemisphere. The Project concept being refined during FEED is simpler and more capital efficient than previous PNG Gas Project concepts. The project now focuses on dry gas and oil/condensate blend sales only. Flexibility will be retained for the addition of a future LPG project if market conditions warrant and the incremental capital investment can be justified.
The Facilities The initial scope involves converting the existing Kutubu oil fields to gas production and developing the participants' respective equity shares in the Hides gas field. A new 600 MCFD or approximately 240 petajoules per year gas conditioning facility will be integrated with an existing plant at Kutubu and a new gas pipeline system constructed from the PNG Highlands to connect with the Australian gas pipeline system. Project pipelines include a 120 km Hides to Kutubu system and a 500 km gas sales pipeline to the PNGAustralian border. The latter will meet up with the Australian pipeline extending through Queensland. The project has also recently announced plans to install a 499 km gas branch pipelinefrom Weipa in Queensland across the Gulf of Carpentaria to Gove in the Northern Territory.
The Participants The PNG Gas Project participants are affiliates of ExxonMobil, Oil Search, MRDC (a PNG company representing landowner interests) and Nippon Oil Exploration. Esso Highlands Limited is the Gas Project Operator and is the designated Operator for both the oil and gas assets after First Gas. APC, a consortium led by AGL and Petronas, will own and operate the Australian pipelines.
The Benefits The PNG Gas Project involves linking two countries in a development that has the potential to generate significant national wealth and new industries in PNG. The project offers a new energy supply to an area in Australia now emerging as one of the most important mineral processing centers in the Asia Pacific region. Spending by project participants, employees, government and landowner companies supporting the project in PNG will lead to a "multiplier effect" as the wealth generated by the project circulates throughout the economy. For landowners and communities along the pipeline routes, the project offers improved access, business opportunities and employment and training opportunities. The project will play an important role in strengthening the relationship between Australia and PNG in terms of employment and business opportunities, transport and logistics, training and education As natural gas is a low greenhouse intensity fuel, the project also offers emissions benefits for Australia. |
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| A Note from the CEO | ||
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Bounty
I recently read a factual account of the mutiny that occurred on the HMS Bounty. It's a fascinating story, given that prior to the Bounty only four European ships had ever visited the island of Tahiti."
Beyond the detailed descriptions of life at sea, the allure of Tahitian life for the sailors of the day and the commercial mindedness of Europe at the time, there is one colossal fact that stands above all others for me. Despite the perils, the enormous distance from England to Tahiti (12,000 miles each way), and the small number of mutineers (10), there was absolutely no question that they would be brought to justice. Remember that much of the world, especially in the East, was still uncharted and the mission and the ship itself were relatively minor in scope and expense in comparison to the world class trade of England in the late 1700's. The rule of law and the discipline of the English culture of the time (and I suppose of other
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European nations as well) demanded that no matter the cost, the time and danger involved, the disobeying of a ship's commander and the taking of the King's property would not go unpunished. The arrival of Bligh back in England more than two years after his voyage began and one year after the actual mutiny immediately set the wheels in motion to bring the mutineers to justice. Eventually all that survived their time in Tahiti and the trip back to England as prisoners were tried and convicted with a few obtaining pardons later. A little known fact is that Bligh was also tried for losing his ship, but acquitted of any wrongdoing prior to the mutineer's court martial.
Certainly nations benefit from such steadfast adherence to principles, but maybe companies can as well. At INTEC, we strive for a culture that is described by our Corporate Values. We have a Vision Statement that says where we are going and our Values tell us how to behave on the way. Hard choices, but likely not as difficult as those concerning the Bounty mutiny, must be made in the course of our professional lives as well. INTEC must provide a business environment that allows us to uphold our Values as we pursue our Vision. But we are INTEC and our environment is determined by our collective actions and reactions to the people and circumstances that surround us. Let's hold steadfast, as the English Admiralty did over 200 years ago, and reap the rewards of our diligence.
Johnny Reed |
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The voyage took at least 12 months one way with the normal sailing dangers of the day only to be exacerbated by a harrowing passage of the Cape of Good Hope, if you took the shortest route. Most folks have probably forgotten that Captain (he was actually only a Lieutenant during the voyage) Bligh's mission was to procure Breadfruit trees from Tahiti and transplant them in Jamaica for commercial purposes. The voyage was the brainchild of the leading botanist of the day, Joseph Banks, however it was carried out under the auspices of the British Admiralty. The cast of characters and their individual meanderings to finally be unfortunate enough to end up on the Bounty are also stories in themselves. Fletcher Christian, as you recall, was the instigator of the mutiny, but his motives are still unclear to this day. The official and unofficial logs and diaries of the men onboard give hints and glimpses of the possible causes, but in no way paint a clear picture. An American movie, starring Marlin Brando as Mr. Christian, tends to make him the sympathetic character and Captain Bligh a brutal antagonist, but the true record is cloudy.
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| PIONEER OOOGURUK AND KERR McGEE NIKAITCHUQ SUBSEA ARCTIC FLOWLINE FEED STUDIES | ||
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INTEC Engineering's Houston office is presently completing the Front End Engineering Design on two subsea flowline projects to be installed offshore the North Slope of Alaska. Pioneer Natural Resources Alaska, Inc. is preparing to develop their Oooguruk oil field with a flowline bundle extending 6 miles offshore near the Colville River Delta and Kerr McGee Oil & Gas Corp. is preparing to develop their Nikaitchuq oil field with a flowline bundle extending three miles offshore of Oliktok Point. The two field sites are located eight miles apart and about 40 miles west of Prudhoe Bay.
The two projects have physical similarities such as shallow water depths at the offshore gravel island drill sites, flowline routes which are sheltered from the more severe Beaufort Sea environment by barrier islands, three phase production lines bundled with injection water, fuel gas, utility lines and a power/communications cable. The production flowlines are proposed to have pipe-in-pipe configurations to provide thermal insulation and to take advantage of some of the potential leak detection and secondary containment capabilities with an annular space between the pipes.
Other similarities include aggressive project cost and schedule objectives to help make these fields commercially viable. INTEC has previously worked with both of these independent oil companies on deepwater Gulf of Mexico developments, where fast-track, fitfor- purpose design philosophies were applied in an operating area previously dominated by the major oil companies. Pioneer's and Kerr McGee's respective first offshore Arctic developments will each address flowline design conditions such as seabed ice gouging, strudel scour, subsea permafrost and upheaval buckling potential. Winter construction is planned from the sea ice surface.
Synergies between the Oooguruk and Nikaitchuq flowlines are being used to benefit both clients. A common INTEC project team is performing both FEEDs simultaneously and includes key members of the BP Alaska Northstar pipeline project team. (That world's first subsea Arctic oil production pipeline is now completing its fourth year of successful operations.) The Northstar pipeline experience and the ability to share technical information between the two FEED projects are helping to reduce the engineering costs for both projects.
Project team members for this ongoing subsea Arctic flowline work include: Glenn Lanan, Todd Cowin, Ben Eisler, Yogesh Kapoor, Jacob Chacko, Mendel Nock, Amitabh Kumar, and Lynda Hibdon, plus many others who are contributing on a parttime basis.
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| ENI PETROLEUM - GOM FIELD DEVELOPMENTS | ||
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Eni Petroleum has contracted INTEC Engineering to perform engineering services on several of their subsea GOM properties to enhance production utilizing existing Eni infrastructure, or in some cases they have collaborated with partners with established platforms to expedite their prospects.
The overall strategy for the projects to be developed followed these basic concepts:
Locations and Field Architecture
East Breaks 157-1: EB-157-1 is an approximate eight mile subsea tie-back to the EB- 159A platform (Cervesa Light) in approximately 925 feet of water. The subsea tree for the completion is a 3" x 2"- 5,000 psi vertical tree operated by a direct hydraulic control system. The FMC subsea tree was purchased from another operator and refurbished to meet new project requirements. The flowline material is 4-1/2" coil tubing which reduced upfront delivery times and can be easily installed by vessel of opportunity. A new 8 mile steel tube ("Seacat" - 19D) umbilical was procured for the development as well as a new Hydraulic Power Unit (HPU) to operate the well from the platform. The platform pull-in operation will include removal of an existing flowline and umbilical from the lone J-tube on the platform and installation of the new conduits.
Green Canyon 298-5: The GC-298-5 project consists of a subsea-to-subsea tieback to the existing Allegheny South manifold in approximately 3,400 feet of water. The GC-298-5 well is a 6,000 foot offset from the existing manifold and will utilize a 4" x 2" Horizontal subsea tree that was refurbished at Cameron's facility in Berwick, LA. The tree will be controlled by a direct hydraulic control system and will be operated from the existing Allegheny HPU. The flowline system is a dual 4-1/2" system with an insulated production flowline and an un-insulated "dead-oil" flush line for contingency purposes. The flowline installation poses interesting challenges in that the flowline lengths are relatively short, (6,000 feet) with respect to water depth which is 3,400 feet and the route includes multiple intricate crossings.
Design Challenges
In general on both projects, utilizing used/refurbished equipment always provides unexpected adventures, usually not insurmountable, but always interesting! Also, procurement of new equipment to interface with used equipment on a small to midsize project always produces multiple issues including a tight vendor market for equipment supply with respect to cost and delivery.
As both projects include a substantial amount of pipe in a demanding steel market, procurement of line pipe for each project was a challenge. As neither project had a huge demand for pipe, nor the schedule to accommodate large mill run of pipe, an alternative source for line pipe was chosen to expedite the process. API 5L line pipe was selected and ID machining was performed to insure "reelability," again for vessel of opportunity.
Scope of Services
INTEC was chosen as a dedicated engineering services supplier for Eni on both projects with supervision from in-house staff and consultants to insure both projects are executed in a timely manner.
Project Status
Eni will mobilize for installation of EB-157-1 in early September and begin installation operations on GC-298-5 in October of this year. INTEC will supply engineering support for both projects and will assist Eni in all aspects of offshore installation.
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Eni requested point contacts in key areas which were provided. INTEC has provided an internationally supported team including additional flowline support from our Delft office’s (Joris van den hark) as well as support from Martin Morrison's team with respect to survey and geophysical tasks. Steve Cochran and Scott Bufton's group are finalizing the flow assurance work and Philippe Roelants and his associates are providing third party inspection on the equipment suppliers. INTEC has also relocated Bryce Gerrits downtown at Eni to assist in upcoming re-completions on the King Kong - Yosemite and other Eni prospects. INTEC has also located an old friend from the subsea archives, Kevin Davis (KD) to assist in the Eni installation activities. Robert Money will be providing project management for both projects from INTEC's Systems Engineering Group.
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| Pipeline De-commissioning at Norway's Frigg Field | ||
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In April 2005, INTEC Engineering BV was awarded a study by Esso Norge AS and Total E & P Norge AS to perform an engineering study for abandonment of pipelines on and near the Frigg Field, which straddles the border between Norway and the United Kingdom. Gas production from the Frigg Field started in 1977 and, at its peak in the 1980's, satisfied approximately 1/3 of the UK gas demand. Since production was stopped in October 2004, offshore work has been ongoing to decommission and abandon or remove the field facilities. Some satellite platforms such as Esso Odin and Total Frøy have already been removed. For the sealines (comprising pipelines, flowlines, umbilicals and cables), the abandonment comprises cleaning, burial or removal depending on the exact location of the line. With five Frigg platforms, tiebacks from at least five satellite field developments and connections to several major gas and condensate transport systems (including two large export pipelines to Scotland), the decommissioning and abandonment of the Frigg field represents a monumental task.
Total Norge augmented INTEC's scope of work to include assessment of numerous rock berms located within the platform safety zones. High level agreements have been made to spread the rock after removal of the sealines; however, Total wished to perform an assessment of the berms in their present condition. In addition, Total requested a review of rock spreading methods along with a market survey to establish equipment capability and availability.
The assessment of rock berm over-trawlability proved to be a challenging and interesting task. Only a limited amount of testing has been performed regarding the interaction between rock berm and trawl gear. Also, the rock berms on the Frigg field represent several generations of design and installation, including berms installed by the "rip rap" method (i.e. shoving rock from both sides or a vessel deck) and the modern fall-pipe method.
The review of rock spreading methods was equally interesting and allowed for some original thinking by the INTEC engineers. Rock removal and near-seabed 'transport' on this scale is not known to have been performed previously. The various potential methods were evaluated on the basis of accuracy, efficiency and applicability at Frigg. This last point included considerations such as access near platforms, water depth limitations (100 m depth at Frigg) and rock size. In the end, a dual recommendation was made for both spreading equipment and berm "shaping" equipment.
The study was completed in July 2005 and in the meantime INTEC has continued to provide support to Esso and Total as they investigate the materials, equipment and costs involved before proceeding into the operations phase of the pipeline abandonment process.
Pipeline decommissioning and abandonment is a growing business area, especially in the North Sea where many large fields with significant subsea infrastructure are nearing the ends of their economic production lives. With these two studies under its belt, INTEC Engineering BV has strengthened its position for future projects involving abandonment engineering.
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INTEC's first task was to evaluate the options for trenching of Esso Norge's Odin pipeline and Total's Frøy water injection pipeline. These lines were taken out of service in 1994 and 2001, respectively, and are both currently abandoned "in place" on the seabed. The Norwegian Ministry of Petroleum and Energy have given instruction that these pipelines must be lowered into the seabed in order to satisfy the requirements for the long term. INTEC's engineering scope of work for these lines comprises:
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| WDDM PHASE IV ENPPI | ||
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IINTEC recently commenced the FEED phase forWest Delta Deep Marine Phase IV offshore Egypt in the London office. We are delighted ENPPI (Engineering for the Petroleum and Process Industries ) of Egypt is providing support to INTEC by integrating specialists into the technical team.
TThe WDDM Phase IV development is comprised of eight additional wells to the existing Scarab / Saffron and Simian developments. Five of these wells will be in the Scarab / Saffron area, two wells will develop the Serpent field and one well will develop the Sinbad field. The Scarab/Saffron and Serpent wells will tiein to the Scarab / Saffron manifolds and the Sinbad well will tie-in to the southern Simian manifold.
The subsea equipment that is required includes:
Each Scarab/Saffron manifold contains a 20” connection hub for the tie-in of further wells. Each of the eight existing wells has a flowline termination (PLET) and umbilical termination (UTA) located in the manifold area. Consequently the area is congested and the closest location possible for the new manifold to the north is greater than 50 metres from either existing tie-in hub. Handling of a 20” jumper with vertical connectors at each end and that is greater than 50 metres long is potentially difficult, particularly in a congested existing infrastructure region. Jumpers that are 25 to 30 metre long are easier to handle. Tie-in spool bases are therefore proposed containing hubs for the vertical connection system and positioned midway between the manifolds. Two jumpers of a manageable size can then be installed to connect each new manifold to one of the existing manifolds.
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| INTEC LEADS INDUSTRY INITIATIVE TO TRAIN NEW ENTRANTS | ||
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As most folks are aware, we face a severe shortage of qualified personnel in our industry. The reasons are varied and well documented. They include a poor industry image, repeated rounds of lay-offs and long periods of neglect in hiring and training new entrants.
About six months ago, as our business began to expand, we were hit hard with the loss of several good employees and the trend still continues today. I am sure most of the readers of this article have a similar experience. Unfortunately our industry has a slow uptake rate on new entrants with the result being higher costs and longer schedules. I feel sure that many of you are or are beginning to experience these consequences. With that situation as motivation, a group of Engineering Contractors in the Houston area began some discussions with our clients on possible solutions to this lack of qualified personnel.
The primary dilemma we faced stemmed from the fact that Engineering Contractors need billable employees and Operators desire to have experienced employees work on their projects. With a dwindling population of experienced personnel from which to draw and an industry expansion underway, the dilemma has become both acute and critical.
The problem was how to make lemonade out of lemons. In close consultation with a growing group of Engineering Contractors and Operators a solution was developed. It is simple and aimed at quickly training new entrants for our industry. The basic principle is this - Engineering Contractors will hire the type and number of new entrants they deem necessary for their business.
The operators will allow these new entrants to be utilized on their projects assuming the new entrants are in the appropriate proportion to experienced personnel. The costs of these new entrants will be at some reduced rate agreed between the Contractor and the Operator for a period of up to one year. The idea is to get the new entrants into project work as soon as possible and to share the cost of this training period between the Contractor and the Operator. A formal, but non contractual, agreement to adhere to the above principle has been signed by numerous participants.
This agreement is first and foremost a moral obligation to make this process work for the good of the industry. Of course competitive motives are involved, but there is a large degree of cooperation and industry altruism within this group. In fact, I am happy to report that the process is already in successful operation among group members. I would like to personally thank all who have helped get us to this point and would invite any interested readers of this article to contact me at INTEC for further information about participating.
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Diederik has over 15 years’ experience in both the offshore and onshore pipeline industry. He has two degrees from the Technical University in Delft, which include an MSc in Mechanical Engineering and after 11 years of service with both marine pipeline design houses in Holland, he decided to give his latent dream a chance, obtaining a First Degree in teaching Physics. Having spent several years teaching he came to the realization that his true vocation lies in the offshore industry. Since joining our Delft office in 2003, Diederik has greatly expanded his role as Sr. Project Engineer. His latest projects have brought him in as project manager in a series of challenging shallow subsea developments in the Dutch Sector. Diederik has tremendous flexibility and energy, which makes him a valuable asset in many client teams. This results in his regularly being seconded into client offices. His current assignment finds him regularly commuting to Total E&P's offices for the L4G Development.
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| 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 |
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INTEC Engineering (SEA) SDN. BHD. Suite 12.2, 12th Floor Menara Aik Hua Changkat Raja Chulan 50200 Kuala Lumpur, Malaysia Tel: +60 (3) 202-2488 Fax: +60 (3) 202-3488 e-mail: info@intec-mal.com.my |
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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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INTEC-egis Adelaide House 200, Adelaide Terrace Perth, Western Australia 6000 tel: + 61 (8) 9220 9374 FAX: + 61 (8) 9325 9897 email: info@intec-hou.com |