INTEC Fall 1998 Quarterly Journal
Featuring:
Houston Leads with Pipelines Zafiro SPM Fabrication Completed Note From the President Floating Production Systems Employee of the Quarter KL News Awards This Past Quarter

HOUSTON LEADS WITH PIPELINES!

In the last couple of years, the Pipeline group has regained its position as the largest discipline in the Houston office. Probably the most significant difference from former years is the diverse nature of the projects. Yes, we are still very much involved in the technical challenges of the deepwater and the arctic; but, we are also involved in such areas as transporting natural gas in the relatively shallow waters offshore from Indonesia to Singapore and onshore from Argentina to Uruguay and Brazil. Our current projects may be broadly divided into five geographical areas, viz., the Gulf of Mexico, South America, West Africa, the Arctic Region and other International Projects.

The Gulf of Mexico (GOM)

Two significant pipeline projects ongoing at present in the GOM are the Amoco King/King's Peak Pipeline System and Exxon Mobile Bay 61-1 Gas Flowline.

Prelinminary design of the Amoco King/King's Peak Pipeline System was completed in September and we have just started the Detailed Design Phase of this exciting project. In water depths up to 6,000 feet, with high temperature and high pressure fluid, insulated Pipe-in-Pipe and its associated Steel Catenary Risers remain the primary technical focus of this project. INTEC is working as the subcontractor to Heerema (the installation contractor), as an integral part of the project team.

The location of the Exxon Mobile Bay 61-1 development is approximately 2.8 miles east of Exxon's Bon Secour Bay (BSB) production platform (MB 62A) located in lower Mobile Bay in Alabama. The primary fluid service is hot (200o), high pressure (8,700 p.s.i.), sour gas. The project includes the design, material procurement and installation of a 2.6 mile long 4x8-inch CRA Pipe-in-Pipe gas flowline with risers, a 3-inch diesel/dilution water line with risers, and a subsea power cable with fiber optics including J-tubes for the 61-1 well.

Other ongoing GOM projects with subsea and flowline components include Mariner Dulcimer and Pluto, DEVCO Gyrfalcon and Ladybug, Texaco Fuji, Exxon Diana and Mickey.

South America

As the result of our concentrated approach and continued good performance on projects, new business in the South American region has grown to such a point that INTEC has opened an office in Buenos Aires. The focus of that office is work for Argentina, Uruguay, Brazil and Chile. Our portfolio of onshore pipeline and focus of that office is work for Argentina, Uruguay, Brazil and Chile. Our portfolio of onshore pipeline and facilities projects is growing rapidly. The following provides a brief summary of a few of the ongoing projects:

British Gas/Pan American Energy - British Gas and Pan American Energy have become major clients for INTEC's South American operation. Various on-land pipeline and compression facilities projects have been awarded. These include:

  • FEED of a land gas pipeline system from Punta Lara in Argentina to Montevideo in Uruguay. This 200km 18-inch pipeline will transport 5 MMSCMD for distribution through a local grid to Montevideo and surrounding cities.
  • FEED of a land gas pipeline system from Punta Lara in Argentina to Porto Alegre in Brazil. This 850km 24-inch pipeline will have total throughput of 12 MMSCMD with 4 compressor stations spaced at 220km with 12,000kW power each. INTEC is responsible for the design and preparation of technical specifications and drawings, assistance in the preparation of tender documentation and the selection of contractors.
  • Preliminary Evaluation of alternatives for the supply of gas to Punta Lara in Argentina for the above two projects. Work includes the evaluation of various pipeline system and compression requirements at Punta Lara.

MetroGas Buchanan to Buenos Aires Pipeline - Engineering of a land gas pipeline 60km long and 36-inch diameter with a total throughput of 32 MMSCMD with detailed design of pressure reduction stations.

West Africa

West Africa is one of the world's most active development areas in highly varied conditions ranging from very shallow water (less than 100 feet) to very deepwater (in excess of 5000 feet); full field oil and gas exploration, LNG and natural gas export systems, etc. Our 1998 involvement in this region is significant and it is expected that this will increase next year. The current oil price level appears to have very little effect on the pace of such developments. The following provides details of some of the ongoing projects in the region.

Mobil ETIM Field Expansion Project - Mobil Producing Nigeria, ULTD, is expanding the development in the ETIM Field offshore Nigeria. MPNU contracted Mobil Technology Company (MEPTEC) to oversee lines, and expansion of the related platform facilities. INTEC was contracted to perform the preliminary engineering of the gas injection pipelines under the direction of MEPTEC. The preliminary engineering pipelines, preliminary design of a subsea manifold for distribution of injection gas, permit documentation preparation, preparation of technical data sheets and related drawings.

Exxon Angola Block 15 - The development is located offshore Angola in Block 15, approximately 90 miles offshore in water depths around 4000 feet. INTEC, acting as subcontractor to AKER Engineering, performed a conceptual study for the subsea, flowline and riser system. The work included the evaluation of several field development options, including the use of subsea and surface wellheads with floating production system options, insulated pipeline, Pipe-in-Pipe versus bundles, steel catenary risers versus riser tower, etc. As we go to press, the next phase of this project has been awarded to INTEC.

The Arctic Region

The end of 1998 will mark the completion of the detailed design of the BPXA NorthStar pipelines, with only permitting approval outstanding. Work for INTEC in 1999 will include the finalization of installation management and supervision plans, procurement assistance and the preparation of construction procedures. Installation of this "First" offshore arctic pipeline is currently planned to be in the winter of 1999/2000. The Liberty Project has also advanced significantly in 1998 and project sanction is due May 1999.

Other International Projects

The continuing growth in the gas market for power generation, particularly in developing countries, has led to various initiatives being considered by oil and gas companies and traditional power generation companies. INTEC is well established in this branch of transmission pipeline engineering from feasibility and concept studies, engineering design to procurement and construction. One such example is an exciting and challenging study performed for a confidential client to investigate the technical and economical feasibility of a gas pipeline system from on-land, through shallow water seas to deep and ultra-deep ocean waters, including all compression and receiving facilities. The study results indicate we will see this type of development in the not too distant future.


ZAFIRO SPM FABRICATION COMPLETED

The fabrication of the Single Point Mooring (SPM) for Mobil Equatorial Guinea, Inc.'s (MEGI) Zafiro Development was completed in late October. The SPM was designed by Imodco Inc. and fabricated in Abu Dhabi by Noell Imac under Imodco supervision. The fabrication, including a Catenary Anchor Leg Mooring (CALM) buoy and two Pipeline End Manifolds (PLEM), was completed in 7 months. INTEC was responsible for the system preliminary engineering, SPM performance specifications preparation, bid document preparation/bid evaluation assistance and construction representation during the SPM fabrication.

The SPM, located approximately 3.2 km from the FPSO Zafiro Producer, will replace the current bow-to-bow tandem tanker mooring crude oil export method. The SPM is designed to moor 300,000 dwt tankers. The FPSO and SPM will be connected via a 40-inch diameter pipeline. Due to the 135 m water depth at the SPM site, a 15 m diameter buoy is required to support the chain/wire-rope moorings. The buoy also includes special design modifications, such as increased plate thickness, corrosion resistant materials in select locations and enhanced coating system to maximize the buoy's infield service life.

The SPM will also be capable of semi-permanently mooring a Floating Storage and Offloading (FSO) tanker and export tanker. A 10-inch diameter pipeline will be installed between the SPM and the future Jade Platform location, to allow production to continue via an FSO moored to the SPM. INTEC was responsible for the review of the detailed designs of the SPM and pipeline systems performed by Imodco and SaiBOS, respectively, and interface management between contractors. Primary INTEC team members include Uri Nooteboom, Craig Fitzgerald, Stuart Smithson and Steve Brook.

INTEC will monitor the installations on behalf of MEGI. The SPM is scheduled for transport in November/December 1998 to Equatorial Guinea. SaiBOS will install the pipelines and PLEMs in January 1999 using the derrick laybarge Castoro Otto. Following the pipeline system installation, Single Buoy Moorings Inc., as sub-contractor to Imodco, will install the SPM with the dynamically positioned vessel Dynamic Installer.

Last month we held our 1999 planning conference with the management team representing INTEC's worldwide offices. The good news was that the INTEC companies are meeting or exceeding most of the goals we had set ourselves for this year, as we are heading for a 30% growth business volume while maintaining target profit levels. Our profit sharing plan will have something to work with this year.

Our plans for 1999 are based on continued growth as far as business conditions in the oil and gas industry will allow. We are hopeful that our focus on deepwater technology in field development and pipeline construction will allow us to fare better than average in our industry. The slowdown we see in certain sectors resulting from the low oil price may help us attract experienced professionals in what had become a very tight market for qualified staff.

During the second half of this year, INTEC has quietly grown another leg, this time on dry land. Our efforts over the last several years to develop business in Latin America have borne fruit, resulting in a new INTEC office in Buenos Aires, Argentina. From there several oil and gas pipeline projects are being engineered, including a total of about 1200 km of gas lines to Uruguay and Brazil, and a 150 km oil pipeline around the city of Buenos Aires.

Our local staff headed by Gustavo Cavallo is also providing management services for a pipeline across the Andes between Argentina and Chile. We are quite excited about this new operation, and would like to express appreciation to Nestor Goytia, Bryan Hartman and the rest of our team for getting an awful lot done in a very short time.

In all the excitement of growth and expansion we must continue to pay close attention to the quality of our work. The influx of new staff and the heavy workload of our engineering and administrative professionals require close attention to processes so that we continue to produce the quality results our Clients have come to expect from INTEC. We have identified further development of our knowledge base and implementation of engineering and project processes as key success factors in the coming year.

In addition to formalizing good processes and practices, we are determined to remain creative in developing even more cost effective ways to produce and transport oil and gas so that this remains economically viable even at today's low prices. The more effective we are in this, the better our chances for continued success and growth.

W. J. Timmermans
President



FLOATING PRODUCTION SYSTEMS

INTEC Engineering is known as industry leader in Marine Pipelines, Terminals, and Subsea Production Systems Engineering. INTEC has also accumulated a wealth of expertise and experience in Floating Production Systems during the last 10 years. Our corporate and staff project experience includes the following projects:

INTEC'S CURRENT FPSO ACTIVITIES ARE:

The INTEC FPSO Design & Construction Guidance Manual

Many papers and publications have been produced in recent years on most of the components of the design, contracting, and construction of Floating Production, Storage, and Offloading (FPSO) vessels. However, nobody has yet put everything together from conception to commissioning in one single composite document, and so we have filled the gap!

The INTEC FPSO Design & Construction Guidance Manual is now nearing completion and there are four sections:

Section 1. Cost Optimization in FPSO Design

Discusses the principal cost parameters, metocean, reservoir and subsea architecture interfaces and impacts on the design of a floating production system. It is principally vessels are also relative. It is principally orientated towards monohull newbuilds, but the effects on conversion concepts and other floating production vessels are also relative. It considers the fabricator's role in design optimization and offers conclusive observations on specific areas of overall cost benefits with respect to CAPEX/OPEX trade-offs together with consideration of the safety and reliability aspects.

Section 2. Contracting Successfully for FPSO Construction

Considers the contracting strategies and documentation structure necessary for the successful contracting of FPSO construction with shipyards. It also considers the bidding procedures and activities required for the provision of a mutually favorable construction price, rewarding contract agreements, and prospective contract period relationships. Alliances, joint ventures, partnerships, and cooperation arrangements are evaluated for their benefits in major vessel construction in the world's shipyards.

Section 3. FPSO Construction Management

Examines the organizational requirements and subsequent introduction of the project management systems necessary for the prosperous construction of major floating production contracts. Special attention is paid to the need for strict offshore construction schedule and quality controls, bearing in mind that virtually all of these contracts are built by shipbuilders or ex-shipbuilders. Opinions and findings are offered on the objectives, interfaces, relationships, responsibilities, and human resources required for ultimate success.

Section 4. Tanker to FPSO Conversion Considerations

Considers the differences between the design, contracting, and construction activity relationships for the conversion of existing trading tankers compared to newbuild FPSO's. It also investigates the risks involved with the buying and conversion of existing and particularly older vessels.

'SPAR' Platform Design Study Activities

The minimum facilities 'SPAR' platform design study for a Gulf of Mexico operator has now been completed. The study concluded with a number of cost-saving features that can also be applied to other 'SPAR' applications. We have now completed numerous SPAR studies, and there is strong continuing interest from other local operators with regard to conceptual 'SPAR' study commissions. Basim Mekha has published some interesting papers on 'SPAR' design aspects. If you wish to know more, ask us!

Deepstar Project: FPSO Oil Spill and Offloading Data

INTEC is continuing their efforts on collecting and analyzing oil spill and offloading data pertaining to FPSOs worldwide. This will assist in the development of an Environmental Impact Statement (EIS) required to install an FPSO in the Gulf of Mexico. Stacy Zaner recently made a presentation to the DeepStar 4100 Sub-Committee and the MMS in New Orleans on the status of INTEC's efforts.

West Africa FSO

INTEC is assisting a major oil company in the preparation of invitations to bid for facilities including an FSO, mooring system, and pipeline, for a project offshore West Africa. This effort follows two years of work by INTEC that included determining the conversion requirements and tanker selection criteria for the FSO.

Personnel Movements

Ken MacKenzie has recently moved to Houston after managing the Kuala Lumpur office's Floating Production Systems activities for some time. Ken has extensive and construction experience and also in the management of worldwide marine and offshore projects related to oil and gas field developments. This included leading a 25-man project team on the refurbishment of the Unocal Erawan Floating, Storage Offloading (FSO) vessel. Welcome to the Houston team, Ken!


INTEC'S Employee of the Quarter

Portrait of Charles Beck

As Jim Gillespie likes to put it, he wandered into Houston from the Louisiana swamps, then worked for a while in a nunnery for the Sisters of Charity before "seeing the light" and joining INTEC. Alas, the truth is not quite so maverick-like! Charles Beck graduated from LSU with a BS degree in accounting then started his career with a large, national retailer. Later, he joined his father in their family business. In 1994, Charles decided he wanted to expand his horizons by moving to the city of Houston. After working in Houston on temporary assignments, Charles chose to join INTEC, completed his CPA at night school in record time and rapidly worked his way to his current position of INTEC Controller.

Charles' decision to move to Houston was strongly supported by his wife, Sandra. While Charles was off in the big city, Sandra stayed in Alexandria with their 4 children where she worked, also in the accounting field. It was a big day when the Beck family moved to Houston

Sandra has now started her career here in Houston. She is the office manager for an employment agency specializing in light industrial staffing. The older children, Aaron, Coley and Linzi have strong ties in Louisiana and still live there most of the time. Aaron has graduated from high school where he was an outstanding quarterback. In the spring, he will attend McNeese University. Coley has joined the air force. His specialty is law enforcement, and is presently stationed in Charleston, South Carolina. Linzi (she is the tiniest weight lifter you have ever seen) is studying for a career in CAD/Computer Graphics. Hailee, the youngest, is 8 years old, makes straight A's and is the social butterfly of the family. A mention of her name brings a twinkle to Dad's eyes. Charles is a duck hunter, an avid reader and a pool shark!

INTEC Welcomes the following New Employees to the Houston Office...


Michael AvedianEdyardi Bertoglio
Gustavo CavalloEbere Chimezie
Marty CrowlJie Fang
Steven GrievesWayne Jones
Constantino FernandezJohn Maki
Saadat MirzaEdmund Muehlner
Michael PaulinJoshua Rabuck
Fateh SihotaMary Simpson
Naomi SteinDavid Zeplin


KL News

The Taiwan Water Company awarded the Basic Engineering Design for the Jing Man pipeline project in September. Planned to satisfy the additional water supply requirements in Taiwan, the pipeline is designed to carry 2000 cubic meters of water a day from the Big Island to the neighboring Jing Man Island. INTEC is currently evaluating Steel, Flexible and High Density Poly Ethylene (HDPE) for the 8-inch OD pipeline. The basic engineering will be concluded in November, and it is hoped that the main consultant, DHV Planetek will retain INTEC for the next phases of the work.

INTEC SEA is also pleased to announce the award of the Resak Shore Approach Construction Management Services (CMS) contract by TL Offshore, the main contractor. Jointly operated by Petronas Carigali and Esso Malaysia (EPMI), the pipeline will transport gas condensate from the Resak field in Block PM/6, approximately 135 km Northeast of Kerteh to a terminal site in Kerteh. The shore approach will be constructed using the directional drilling method, and will be managed by a team consisting of experienced Malaysian engineers.

Enron India has commissioned INTEC to carry out a feasibility study to evaluate an FSO facility for the Panna field located in 50 meter water depths.

In addition to the above new projects, INTEC is still working on the Cabot Port Dickson Terminal project, and the Christiani & Nielsen TARP Project. The Melaka Refinery Company Terminal project is now complete, and INTEC takes pride in being responsible for bringing this project to closure under budget and within schedule.

The Southeast Asia economic woes notwithstanding, INTEC is committed to making long term plans for the Kuala Lumpur office. As part of this strategy, INTEC is actively pursuing outstanding engineering and management personnel to join our KL operation. We announce, with pleasure, the recent addition of Puan Zaiham Ahmad as our Project Services Manager, and Encik Terence Tan as a Project Engineer. Both Zaiham and Terence bring extensive local expertise derived from working for our clients Occidental and EPMI respectively.
CONGRATULATIONS!


The following employees were recently promoted to new positions. We appreciate their hard work and congratulate them on their success:

Simon Bonnell - Supervising Engineering Specialist

Kimberly Clarke - Senior Technical Specialist

Indu Mahendran - General Manager S.E.A.

Ram Singh - Supervising Engineering Specialist

Packianthan Srikumar - Project Manager

James Strange - Senior Designer

David Sumner - Project Manager

Vincent Vetter - Project Manager/Supervising Engineering Specialist

Kimberly Wallace - Project Engineer


NEW AWARDS THIS PAST QUARTER
For Christiani & Nielsen, Berth 3 Trestle Modification

For Kostar/KHV Planetek., Taiwan Water Company Design and Project Management for 8-inch 4.1 km Submarine Pipeline

For Metrogas, Buchanan II Retiro Gas Pipeline Project

For Mobil Equatorial Guinea, Provide electrical engineering services to Mobil Project Management Team

For Mariner Energy, Inc., Black Widow Flow Assurance Update for Oil Production

For Exxon, Mickey - Pigging Method and Hydrate Formation/Remediation

For Reading & Bates Development Co., Ladybug Subsea Field Development

For Westcoast Energy, Campeche Compression Project - Owner's Engineering Team

For Pecten Engineering, Malampaya Project - Consulting Proposal for Electrical Assistance

For DeepStar 4200 Committee, DeepStar Flow Assurance Design Guide

For Cabinda Gulf Oil Co., Kuito Development Phase 1B/1C Study

For Shell Todd Oil Services, Technical report on the Risks Associated with Construction of an Offshore Support Vessel

For Marathon, Assist with Oyster and Arnold Post - Installation report

For Heerema, AFE to AFC Bridging Phase - Amoco King/King Complex

For Elf, Mattehorn Study - Subsea System Conceptual Study

For Exxon Company USA, Bon Secour Bay 61.1 Flowline, Diesel Dilution Line and Power Cable Preliminary Engineering

For Chevron Petroleum Technology, Offshore Pipeline Cost estimating Program

For Texaco Inc., Feasibility Study of Gas Field Development Offshore Angola

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