Fall 2000
Featuring:
Canyon Express Project Parana River Pipeline Crossing Scarab/Saffron Development Project Note from the President Agbami Field Development Project
Technology Conferences Corporate Technology Manager New Man Down Under Employee of the Quarter MTS Golf Tournament
Canyon Express Project
In late December 1999, INTEC was awarded the Front End Engineering Design (FEED) by Elf Exploration Inc. (Elf), a subsidiary of TotalFinaElf, for the Canyon Express Development in the Gulf of Mexico. Canyon Express is a first-of-a-kind industry initiative, promoted by Elf, to jointly develop three neighboring gas fields operated by three different operating companies through a common production gathering system. The fields are Aconcagua in Mississippi Canyon 305 operated by Elf, King's Peak in Desoto Canyon 177/133 and Mississippi Canyon 173/217 operated by BP, and Camden Hills in Mississippi Canyon 348 operated by Marathon.

Canyon Express Site Diagram Project Description
Peak gas production of the three fields will be approximately 500 MMSCFD. A gathering system consisting of dual 12-inch flowlines will transport the gas from the three fields approximately 48 miles to the Virgo Platform operated by Elf, which is located in the Viosca Knoll area. The deepest water depth portion of the Canyon Express flowline system occurs at Camden Hills in a water depth of approximately 7250 ft. Water depth at the Virgo Platform is approximately 1130 ft.

Flow Assurance Issues
Apart from the record water depth, one of the major challenges for this development was the Flow Assurance and Operability of the production gathering system. The Canyon Express system must be able to produce the three fields under different operating regimes and varying production rates from multiple zone completions without any field taking on the performance risk of another field. Accurate flow allocation is therefore essential, which resulted in the use of subsea flow meters at each of the subsea gas production wells.

Flowline Routing
One of the unique features of this development is that multiple well manifolds and infield flowlines have been eliminated through the use of in-line tie-in sleds installed within the flowlines. These in-line sleds have been designed to accommodate individual subsea wells. As a result, flowline routing is dictated in large part by the location of the wells. The flowline is routed in close proximity to each of the existing and future well locations so that the wells can be connected to the flowline in-line sleds using conventional inverted 'U' shaped jumpers.

Scope of Services
As part of the FEED, INTEC scope included preliminary engineering of the complete subsea production system and preparation of specifications and bid packages for all equipment and services. This included subsea trees, chokes, subsea connectors, subsea valves, intervention/workover control system, subsea test tree, subsea multi-phase flowmeters, intelligent well completion equipment, production control system, line pipe, coatings, supply and installation of umbilicals and installation of flowlines and steel catenary risers at the Virgo Platform.

Project Team
Canyon Express Project Team Project sanction was obtained in August 2000, and equipment and installation contracts have been awarded. The INTEC team led by John Stearns will provide technical and management support to the project for the next 18 months through commissioning and first gas, which is scheduled for first quarter 2002. John and his team, including Paul Martyniak (controls and umbilicals), Bennie Coates (subsea trees and equipment), Tom McKay (subsea trees and equipment), Andre Nogueira (flowlines), Ravi Gudimetla (flow assurance), Ebere Chimezie (subsea interface control), Kelly Ponder (document control) and Connie Green (project secretary) are looking forward to the ever-new challenges of this trend setting project.

Parana River Pipeline Crossing Contingency Plan

In 1987/1988, a construction consortium led by Techint constructed the Paraná River Gas Pipeline Crossing, as part of the Gasoducto Mesopotámico Pipeline System. The pipeline extends between the Santa Fe and Entre Ríos Provinces in Argentina, located approximately 500 km north of Buenos Aires. During the pipeline river crossing project, INTEC was the resident engineer for the construction consortium, and was responsible for detailed design and installation engineering of the 24-inch gas pipeline river crossing between the towns of Paraná and Santa Fe. The pipeline was installed across three separate channels of the river and through a large swamp region between the river channels, for a total length of approximately 30 km. The scope of work included hydrological studies, detailed pipeline design, dredging profiles, scour depth estimation, installation procedures and overall technical support during dredging and pipeline installation activities.

Project Revisited
Twelve years later, INTEC is again providing engineering services for the same pipeline system. This time on behalf of a new owner and operator, Transportadora de Gas del Norte (TGN), who has requested INTEC prepare a Paraná River Pipeline Crossing Contingency Plan. Dunes under the water in the Parana RiverThe objective is to prepare a contingency plan which includes action plans, materials lists and pre-qualification of specialised subcontractors that will allow TGN to minimize the interruption of the gas supply in the event that a repair or partial replacement of the pipeline crossing would be required. The plan addresses internal and external corrosion, damage resulting from external impacts, and from excessive scouring resulting from extreme flooding conditions or significant changes in the river channel location. At the present time, the pipeline that was concrete weight coated and dredged into the river bottom, remains buried below the bottom of the river channels.

Pipeline Contingency Plan
Erosion due to strong river currents causes constant changes in the pipeline burial depth. In some sections of the river crossing, recent surveys have shown that as a result of scouring, the burial depth has been reduced to less than one meter of cover. The contingency plan which addresses repair and/or replacement alternatives for the Paraná Nuevo portion of the pipeline river crossing includes recommended construction and repair methodologies, technical specifications for materials and specialized equipment, preferred pre-selected material suppliers and contractors, pipeline materials, spare parts inventory, logistics plan, basic engineering and field studies to allow rapid deployment and a pre-established action plan in the event of an emergency.

Scarab/Safron Development Project

On 30 November 1999, the Burullus Gas Company (Burullus) awarded a contract to the Bechtel INTEC Consortium, designated the Deepwater Managing Contractor (DMC), to manage the Scarab/Saffron Development Project. Marine survey vessel enroute to project siteFirst gas production of 440 MMSCFD is scheduled for 1 January 2003 with full production of 600 MMSCFD scheduled for 1 April 2003. The water depth in the development area ranges from 250 m to 850 m, and the area is located approximately 90 km offshore Alexandria, Egypt in the Eastern Mediterranean. The development will consist of eight subsea wells that will produce high methane content gas via a dual export pipeline system to a new onshore gas processing plant. Following treatment, the gas will be exported via a new pipeline to a tie-in to the Egyptian National Transmission System.

Project Status
The project was kicked off in INTEC's Houston office immediately following signature of the contract. The 8th floor of the INTEC offices became the project office where Burullus, Bechtel and INTEC personnel work together to progress the work as efficiently as possible in a team-like atmosphere. The number of project personnel vary, but Burullus personnel have numbered as many as 18, Bechtel as many as 12 and INTEC has averaged approximately 30 people during the nine months to date. Following an initial three month period during which the DMC verified the Burullus Field Development Plan, INTEC and Bechtel have focused their primary attention on preparation and issuance of Invitation to Tenders (ITTs), and evaluation of bids for the major EPC or EPIC contracts. ITT's were issued and several contracts will be awarded from the Houston office, but the four installation bids will be evaluated and awarded from London when the project management team relocates to the Bechtel London offices in mid-October.

Project Team
The INTEC team is managed by Bill Philliber, Offshore Project Manager; Joe Padilla, Engineering and Installation Manager; Malcolm Blackmore, Pipeline Manager; and Tom Choate, Systems/Interface Manager. Other INTEC team members who will be relocating to London include Wojtek Weckiewicz, Robert Carmichael, Frank Nunan, Mike Avedian, John Ray, Paul Shaw, Ernie Matchett and John Collins. The INTEC team has responsibility for management of detail design, manufacturing, testing, installation and pre-commissioning of the major contracts, which have a total value in excess of $300 million. The INTEC team will be in London for 16 to 18 months prior to relocation to Egypt for management of installation and pre-commissioning of the subsea facilities.

A Note from the President
The Consulting Engineering Business and Intellectual Property
Years ago it was not uncommon to see contracts with a clause that essentially prohibited us from using what we developed on a Client's project in our future business. A Note from the PresidentI used to argue that it would require us to wipe our brains clean after the project, to comply with the letter of the agreement. Usually it ended up being clarified as applying only to documents specifically prepared for that project, or we just gave up realizing that enforcement would be impractical, as one cannot prevent a professional engineer from improving him or herself through learning. Of course I also tried the argument that we would not be considered for the job if we hadn't already gained experience from previous work for other Clients, but found that logic doesn't always prevail when discussing legal issues.

There are still some in the energy industry who believe that engineers and consultants couldn't possibly know anything if they hadn't been taught by their Clients. They apparently don't realize that the power of creativity is not in information, but the ability to devise and apply a process to effectively use this information in varying circumstances. Just translate this situation to the medical or legal profession, and the suggestion that a doctor shouldn't use what he learned on your case in treating his next patient is not only silly, it would be downright unprofessional.

Another intellectual property issue arises when we work for two Clients who are pursuing competing projects or markets. One may be leery of us performing similar work for the other, thinking that his competitor might benefit from the solutions we develop for him. While this attitude may be understandable, it is not particularly realistic. In our work we constantly learn and improve, and our value to Clients is our ability to use this experience to constantly think of better ways. The notion that there are singular solutions that we could market elsewhere is therefore incorrect. What we use every time we do a project is a creative process that makes use of available information, including project and Client-specific conditions as well as our aggregate experience of what worked and didn't work in the past. The solutions that we developed 10 years ago (and which someone at the time might have wanted to prevent us from using again) would be outdated today.

I would argue that any attempts to constrain the use of information that is in itself not confidential, is counterproductive. To think that there is advantage in restricting information and knowledge flow will be as effective as trying to control the Internet. The aim in our industry should be the opposite, namely to open up access to knowledge and information since power is not in the information itself, but in the ability to use it effectively in constantly improving design and management processes. To do differently would mean that some of our Clients would get second rate treatment and not get the full benefit of our knowledge and capability. This is a notion that would violate our business ethics as well as good business sense. If we are successful it is because we offer a problem solving capability, rather than sell ready-made solutions copied from past experience.

W. J. Timmermans
President

Agbami Field Development Project

In October 1999, INTEC was selected as the prime contractor to provide Front End Engineering Design (FEED) services to Star Deep Water Petroleum Limited for the Agbami Field Development. The Agbami Field is located 70 miles offshore Nigeria and approximately 220 miles southeast of Lagos. The discovery is located in OPL Block 216 in water depths ranging from 4,200 ft to 5,400 ft. Like many other offshore West African discoveries, the Agbami Field is basically an oil field with associated gas. The current field development concept consists of a new-build Floating Production Storage and Offloading (FPSO) system, multiple subsea wells and an oil export system. Options to include a dry completion tree facility are currently under evaluation.

INTEC is providing engineering design services for the subsea system including risers, flowlines, subsea trees, manifolds, control systems, umbilicals, jumpers, and miscellaneous subsea equipment. Vince Vetter, as Subsea Systems Manager, has been leading the Subsea Team consisting of Malcolm Blackmore, Steve Brook, Antonio Critsinelis, Roy Flack, Dave Hewett, Davinder Manku, Kim Clarke, John Skinner, Craig Fitzgerald, John Shanks, Saadat Mirza, Jie Fang, Steve Cochran, Simon Bonnell and Slimane Boubbane.

INTEC is also working together with Mustang Engineering on the FPSO FEED. INTEC is providing the engineering design services for the vessel hull, vessel marine systems, FPSO mooring system and the export offloading terminal system. Mustang, as a sub-contractor to INTEC, is designing the FPSO topside process systems. Ken McKenzie is leading the FPSO marine design effort as the Marine Systems Manager with the support of Craig Fitzgerald and Erich Theisinger.

This work is being performed in a dedicated project office located in the Mustang Engineering Park Ten offices. The Project Management team is an integrated INTEC/Mustang team with Ron Ledbetter acting as the Deputy Project Manager / Systems Engineer, and Barbara Castellese as the Project Document Controller/Cost Controller. Vince Vetter is also responsible for the management of INTEC activities during the bid support phase of the work. The FEED work was completed in June 2000 including preparation of bid packages for the primary contracts. INTEC and Mustang are continuing to provide engineering support during the bid phase of the project, which may extend to the end of 2000.

Technology Conferences

Natural Gas for Peru Industries
An international seminar, Natural Gas for the Industry, organized by the CAMISEA Consortium (Pluspetrol, Hunt Oil Company and SK Corporation), was held in Lima, Peru on 23 and 24 August 2000. The objective of the seminar was to expose the industrial community to the possibilites that natural gas offers to the Peruvian economy and industry. This objective was achieved through presentations, discussions and practical case studies. It was concluded that natural gas is the preferred choice as the fuel for the 21st century due to low cost and low environmental pollution concerns, and that the development of the Camisea Gas Field will become a new source of energy for Peru and its industries.

Gustavo Cavallo, Gustavo CavalloGeneral Manager of INTEC Engineering in Buenos Aires, Argentina, as pictured below, was invited to present a paper on natural gas basics, conditioning, treatment and transmission systems. This paper is available on the INTEC Engineering website at http://www.intec-hou.com/news/technical/. Other seminar participants were CEOs and technical staff of companies and institutions involved in the development of the gas industry, together with college professors and public officials of the hydrocarbon and energy sectors.

5th Annual Deepwater Technology and Development Conference
INTEC Engineering, Inc. participated in the 5th Annual Deepwater Technologies and 5th Annual Deepwater Tech and Development ConferenceDevelopment Conference conducted by the Strategic Research Institute, held in Houston, Texas on September 13-15, 2000. Basim Mekha, Senior Project Engineer, conducted a presentation entitled New Frontiers in the Design of Steel Catenary Risers for Floating Production Systems. INTEC was also an exhibitor at the conference.

Corporate Technology Manager

In view of INTEC's continuing advances in developing technologies, and to ensure long term promotion of technical quality throughout the company, a new position of Corporate Technology Manager has been developed. Dr. Andrew PalmnerDr. Andrew Palmer, founder of A. C. PALMER & Associates and presently Professor of Petroleum Engineering with Cambridge University, U.K., has accepted the position of INTEC Corporate Technology Manager effective 1 June 2000. Dr. Palmer begins this new assignment on a part-time consultancy basis until completion of ongoing commitments on or about 1 June 2001.

Dr. Palmer has broad experience in strategic planning and implementation of technical programs, and is a leading authority on offshore development engineering. In this capacity, Dr. Palmer will be responsible for INTEC's corporate technology with a mission to maintain our vantage position in deepwater, Arctic and other frontier technologies. The INTEC management team is extremely pleased with the addition of Andrew Palmer as Corporate Technology Manager. This underscores our commitment to excellence in technology advancement and quality to better serve our clients.

New Man Down Under

Martyn Witton has re-joined INTEC as of 1 August 2000, and taken up station in Perth as the manager of the INTEC joint venture with Egis Australia. Martyn has more than 17 years experience in offshore and subsea production solutions, and will lead INTEC's forays into the offshore Australian subsea and floating production systems market. Martyn will be working closely with the INTEC Engineering team in Kuala Lumpur, and with Nalin Gunasekera who has joined the INTEC team in Perth.

Martyn and his wife, Patricia, along with their two sons, Ben, who is 18 and a student at Manchester University in England, and Samuel, who is 16 and still in high school, have settled for the time being near the beach while looking for permanent quarters. Koala BearThe family is reported to be settling in comfortably, and finding out that the Western Australian winter is better than the English (let-alone Scottish) summer. Martyn and his family have enjoyed surfing lessons, the sounds of large breaking waves, time on the beach observing dolphins, seals and whales, and weekends in the country observing koala bears, kangaroos and fantastically colored birds. INTEC welcomes Martyn and his family to Perth, and being INTEC's Man Down Under.

Julio Moreno - Employee of the Quarter

Julio Moreno graduated from the engineering school of the University of Buenos Aires in the early seventies. His first assignment was technical auditor with the formerly state-owned and now privatized gas firm, Gas del Estado. He then became involved in project and construction supervision of gas pipeline projects, compressor plants, pressure reduction stations, residential natural gas distribution networks, cathodic protection, and industrial safety and hygiene. Julio MorenoWhile on assignment for Gas del Estado in 1977/1978, together with Gustavo Cavallo who is now the General Manager of INTEC's Argentina office, Julio met Nestor Goytia, who is now INTEC's Director of Latin American Business. Nestor was part of a consulting engineerng team during the Magellan Strait Gas Pipeline Marine Crossing Project. In 1981, Julio again worked with Nestor and Gustavo in the shore stabilization design of the pipeline shore crossing approach at Cabo Vírgenes, in the Magellan Strait area.

Nearly 10 years later, in 1987, Intec participated in the Mesopotamian Gas Pipeline Project and the Parana River Gas Pipeline Crossing Project as consultant for the detailed engineering. Julio participated in these projects as Gas del Estado´s Head of Works Inspection. In the private sector, Julio has taken part in diverse projects with international companies such as Bechtel, Techint SA, Arcan Chile SA and Nova Gas International. With the two latter firms, he was part of the project and construction management team for serveral gas pipeline projects that crossed the Andean Mountains between Argentina and Chile. It was during these assignments that Intec established an engineerig office in Buenos Aires at the end of 1998 and Julio joined the INTEC team.

Julio is very much appreciated for his cheerful nature and calm spirit, and is an excellent team player. His hard work and great dedication produces top quality results which continue to shine in every task he tackles. Additionally, his excellent people skills have enabled him to make friends in every place where he has worked or visited, and he is always thankful and grateful for his many friends. Julio has been married to Ana Maria for 26 years and they have two sons. Juan Cruz is 21 and Juan Pablo is 18, both are currently college students. Julio loves sports including swimming, water polo, baseball, hockey and rugby. He was part of the premier division of the Olivos Rugby Club at age 19 and later trained younger teams. The Morenos live in a small villa amidst the Cordoba Mountains in a home that overlooks the San Roque Crystal Lake. On weekends, Julio relaxes in the mountains and enjoys kayaking, trekking, bike riding, tennis or scouting new places on his Honda Nighthawk 650.
MTS Golf Tournament

INTEC participated in the Annual Marine Technology Society (MTS) Golf Tournament on 27 July by sponsoring the 16th hole in celebration of INTEC's 16th anniversary of providing engineering services and project management to the international oil and gas industry. INTEC also sponsored two 4-person golf teams who endured the July heat and attempted to seek shade under the numerous pecan trees at the Old Plantation Golf Course located in Richmond, Texas.
MTS Golf Tournament
One team consisted of John Heg of Ocean Energy, Tony Emmerson of Vastar Resources, Leith McDonald of BP Amoco and Paul Kronfield of INTEC Engineering. This team finished in a respectable position in the field of 212 players. Did we mention two 4-person teams? One client was unable to participate at the last minute. Therefore, the other team consisting of Geir Saether, Steve Brook and Vince Vetter, all from INTEC, did an admirable job in competing with only three persons considering that this team won a trophy.
INTEC Engineering, Inc.
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