In an Upstream Strategy 2000 presentation, Dick Olver of BP gave an indication as to the capacity of this infrastructure when he said, “We are committing to a new one million barrels a day pipeline system called the Mardi Gras Pipeline. We estimate at least one billion net barrels of unbooked resource at each end of its two branches.” Major deepwater GOM developments addressed during the Upstream Strategy Presentation are shown in the following figure.

Project Overview
To achieve projected production targets, BP has determined that it will build a new oil and gas transportation system to support the development of these deepwater GOM fields. In May 2000, BP awarded a contract to INTEC Engineering to perform preliminary engineering services for the deepwater portion of the Mardi Gras Pipeline System. The scope of work includes design of the deepwater pipelines and steel catenary risers (SCRs). The objective of this work is to develop a technically feasible pipeline system that can be procured, installed and made operational by 2004.

The large pipeline diameters required to achieve the production throughput volumes, coupled with 4,000 ft to 6,500 ft water depths, place the Mardi Gras Pipeline Project among the most demanding deepwater pipeline projects in the world. The challenging features of the pipeline system include the riser connections between the pipelines and field development surface production facilities, and the subsea tie-in of various infield lateral pipelines to the main trunk line, as shown below.

Since contract award in May 2000, the INTEC team has completed the conceptual engineering phase. The main focus of the conceptual design was to review potential solutions, determine the most suitable system configuration and assess system feasibility. Feasibility reviews included design analyses, installation vessel capability, risk management and pipeline system safety.

The INTEC team is now in the preliminary engineering phase which has two main objectives: (a) to verify system feasibility for all components; and (b) to develop a plan and its associated cost for implementing the transportation system in time for start up of the first field development in 2004. To achieve feasibility verification, a large portion of the current engineering phase is related to technology development which will include full-scale pipe collapse testing, pipeline weld fatigue, pig testing, and design of key components such as flexjoints for the risers.

Project Team
During the preliminary engineering phase, the project team will expand from approximately 20 to more than 50 personnel. The deepwater pipeline project management team includes Alvin Alleyne (Project Director), Gene Mullee (Project Manager, Mississippi Canyon), Brian McShane (Project Manager, Southern Green Canyon), Bruce Chandler (Project Manager, Technology Development and Standardization), and Jerry Hoose (Deepwater Installation). The strategy behind the project structure is to ensure that the needs of each producing region and associated field developments are met, as well as maximizing engineering synergies related to technology development and component standardization.

The project team also includes two riser teams lead by Jie Fang and Jonathan Jury, a pipeline team lead by Sharon Rich, and a subsea tie-in team lead by Matt Cyvas. Ensuring smooth operation of the project is a strong support group lead by Dolly Ondrias (Administration) and Chuck Lewis (Project Services). John Shanks and Andrew Palmer are Technical Advisors to the team.

Stabilized crude will be exported through a 36 mile long 12-inch diameter pipeline to the Odyssey Pipeline System located in Main Pass Block 289. Export gas will flow through a 41 mile long 10-inch diameter pipeline to the Destin “P” Platform located in Main Pass Block 260. Water depth at the Main Pass platform locations varies from 300 to 400 ft. The pipeline will be connected to the SPAR via steel catenary risers (SCRs). For the shallow water platforms, conventional risers will be retrofitted and connected to the pipelines using tie-in spool pieces.

Project Challenges
Pipeline route selection is a particularly challenging aspect of this project. The SPAR will be located on the western side of Dorsey Canyon. The export pipelines may be routed northward along the plateau between the canyon and the adjacent Petis Bois Salt Dome, a steep eastern flank that rises several hundred feet above the plateau.

INTEC is responsible for management of the pipeline route surveys, pipeline route selection, pipeline system flow assurance, detailed design of the export pipelines, retrofit risers, tie-in spool pieces and eleven pipeline crossings. INTEC is also responsible for the preparation of material and construction specifications, and the review of the in-place design and installation analyses for the pipelines, steel catenary risers, retrofit risers and tie-in spool pieces.

Design Premises
The pipeline design is being performed to the relatively new API Recommended Practice RP 1111 “Design, Construction, Operation and Maintenance of Hydrocarbon Pipelines (Limit State Design)”. The steel catenary risers are being designed to API Recommended Practice RP 2RD “Design of Risers for Floating Production Systems (FPSs) and Tension-Leg Platforms (TLPs)”. The pipeline and riser designs are also being “dual qualified” to the more traditional ANSI/ASME B31.4 and B31.8 oil and gas transmission pipeline design codes.

Project Team
The INTEC design team includes Vural Dolen (Project Manager), Jayesh Antani (Engineering Manager), Darren Heal and David Maguire (Senior Pipeline Engineers), Simon Bonnell and James Nichols (Senior Survey Engineers), Todd Cowin and Stephen Lyon (Pipeline Engineers), Kim Clark (Designer), Loty McRary (Project Secretary) and Rachell Allen (Document Control). Paul Laws and Tom Even are supporting the project on material and specification issues, and other INTEC personnel are providing specialist support for HSE and flow assurance issues. Having commenced in late September 2000, detailed design is scheduled to be complete at the end of first quarter 2001.

Other major contractors involved in the project include Aker Maritime, Inc. (SPAR design and fabrication), Alliance Engineering, Inc. (topsides design), Aker Gulf Marine (topsides fabrication), Allseas Deepwater Contractors SA (pipeline and steel catenary riser installation) and Heerema, who will be responsible for the installation of the SPAR and the lifting, pull-in and hang-off of the steel catenary risers.

Overall field development facilities have been grouped into 38 Engineering, Procurement, and Construction (EPC) contracts. The EPC contracts typically include the construction of drilling, production and living quarter platforms, marine pipelines and risers, an FSO and the engineering and procurement services required to accomplish the work.

The Cantarell Field Development is a global star performer, producing close to one million b/d on average during the past 20 years. Cantarell is considered to be the sixth largest oil field in the world.

Pemex recently awarded INTEC a contract to provide engineering, procurement and construction supervision support to the Pemex Cantarell Project Team. INTEC project offices have been established in Houston and México, and area/site offices will be established in Ciudad del Carmen and possibly in Villahermosa, México.

The INTEC team providing engineering, procurement and construction inspection services to Pemex is lead by Victor Zerpa (Houston) and Nestor Perez (México). Approximately 30 engineers and inspectors will be working in several locations such as Ciudad del Carmen, Tampico, Villa Hermosa, México and Greens Bayou (Houston).

Party 2000

The INTEC Christmas party was held on 16 December at the Greenspoint Club. It was a very festive and enjoyable evening combined with great food and plenty of dancing! As this annual event seems to grow in size each year, this was by far the biggest INTEC party ever. Over 300 were in attendance. With a full night of dining, dancing, mingling and spirits, it was truly a memorable occasion.

One highlight of the party followed dinner, when all INTEC employees dedicated a special song to the four Principals -- who are…'Simply the Best'! We look forward to our Christmas party every year and anticipate next year’s party to be even better. Thanks to everyone who made it such a joyous event. See you next year.

What has happened is that the supply and demand of oil and gas are not only in balance, but that the potential of the industry to significantly increase the amount of oil products brought to market is limited. The limitations not only apply to oil and gas production, but also to tanker transportation and refining capacity. New reservoirs are being discovered, but not at a faster rate than existing fields are being depleted. With the expected increase in energy consumption over the coming years, this is not good news, and the strains are already beginning to show.

Many new projects are now in the preparatory stages, and if all these projects are completed as planned, production levels could be sustained or even increased in the coming years. Many of these developments are in very deep water as the deep Gulf of Mexico and West Africa regions are proving to be quite prolific. This is good since INTEC is well positioned in that market, so it will keep us busy for the foreseeable future. The downside is that the number of deepwater projects is growing, while the available resources are limited. INTEC is recruiting new staff as fast as possible and casting its net quite wide, but there is a limit to the number of engineers and other experts one can find with the level of experience our Clients expect.

Short of raiding from competitors, which doesn’t increase the available pool and drives up costs, one has to bring in people from different areas of the world such as the North Sea and Australasia. The current situation reminds me of the boom of the late seventies and early eighties when new recruits came from the automotive industry which was suffering from a recession, and from the space industry at the end of the Apollo program. Many intelligent, creative people with the right attitude were thus added to the resource pool, and since they were smart, they learned fast. I suggest we remember this period and keep in mind that it is better to have someone with the right intelligence and attitude, even if the resume doesn’t show the exact experience and skills called for, than to have an “expert” who is not a team player or is too adverse to change.

At the same time we must entice young engineers to join the ranks of the energy industry nomads if we don’t want to remain dependent on a shrinking and aging group of old-timers. Our Clients will have to accept that not everyone on a project team must have 15 years plus of experience. At the same time we need to ensure that these “newcomers” learn the trade in the shortest possible time by providing training, clearly defining the processes we have found to be most effective in producing a quality project, and using technology to capture and distribute our collective knowledge.

W. J. Timmermans
President

Second International Petroleum
Technology Exhibition 2001
The Second International Petroleum Technology Exhibition was held at the Palacio de los Deportes Sports Arena, in México City from February 4th through 7th, 2001. This event was organized by Pemex Exploration and Production, and the Mexican College of Petroleum Engineers. The exhibition showcased international petroleum engineering, and promoted technological, commercial and industry-related exchanges. This is the most important industry exhibition in México, attended by many oil and gas related company representatives.

More than 300 operator, engineering and service companies from countries such as the United States, Germany, Brazil, Canada, France, Holland, England, Japan, Venezuela and México, among others, were represented. Companies exhibited their products and services, and presented their capabilities to over 15,000 visitors from México and others Latin countries. INTEC Engineering, with an exhibit focused on marketing our services to Pemex and other potential clients in Latin America, demonstrated our strong commitment to this market by taking part in what is arguably the most relevant event of the year for the oil and gas industry in México.

For more than a decade, ExxonMobil and INTEC have developed innovative engineering, material and construction methodologies to meet the high pressure, high temperature, and corrosive gas applications in environmentally sensitive Mobile Bay, Alabama. Developments in Mobile Bay typically produce high temperature sour gas. Initially, ExxonMobil developed this type of field by installing a flowline system from a new well template where high temperature gas would be cooled before flowing to the nearest production platform for further processing. Beginning in the late 1980’s, ExxonMobil began to consider methods for eliminating the need for gas cooling facilities well template platforms, which would result in having to design in field flowlines for temperatures approaching 300° F. INTEC’s involvement goes back to our first Mobile Bay project in 1989 which was based on the first use of ultra-high strength corrosion resistant materials for carrier pipe applications. Hastelloy Grade 110 corrosion resistant alloy (CRA) line pipe was used for resistance to H2S and extreme hoop strength requirements.

This first project included detailed design, relevant material testing and installation supervision of several high temperature, high pressure insulated sour gas flowlines. A number of innovative techniques were applied to reduce cost, improve safety and ensure long-term protection of the environment. This required the development of a welding procedure that could be used with cold worked material. A patented process was developed after successful testing and application. Inconel (Grade 625) risers were used for temperatures to 300º F and pressures to 11,000 psig.

A  pipe-in-pipe design configuration was used for the project. A 4-inch diameter CRA carrier pipe was contained in an 8-inch diameter carbon steel jacket pipe. Polyurethane foam with a mineral wool field joint buffer was used to meet insulation requirements. The flowlines were installed using a dedicated laybarge specifically developed for work in shallow water, and configured to install 4 flowlines simultaneously. Two barges were linked end to end to increase the number of weld stations for pipe-in-pipe make-up. The crossing of the Mobile Bay Ship Channel required directional drilling using an innovative wet-to-wet arrangement to avoid damaging the sensitive environment. The work was performed from 1989 to 1992.

In 1997, additions to the field were implemented with INTEC providing similar services. ExxonMobil decided to increase gas production in Mobile Bay by installing an 8-inch flowline between the existing 114C Well Template and the 115C Production Platform in Mobile Bay. INTEC was responsible for preliminary engineering including development of all material and construction specifications and cost estimates for detailed engineering, procurement and construction of the flowline. Preliminary engineering included options for future field developments with focus on the 114-3 flowline, which was followed by detailed design engineering. This technically challenging project included high pressure, high temperature, sour gas with a potential for hydrate formation in the flowline between the well template structure and the production platform. Large thermal expansions were accommodated via the use of innovative expansion loops, which were buried and encased to allow free movement of the expansion loops. Preliminary engineering and cost estimating began in August 1996 and was completed in November 1996. Detailed design engineering was completed in summer 1997, and the flowline was installed in winter 1997.

In 1998, ExxonMobil decided to add a new well to expand the gas production development in Mobile Bay. The high temperature, high pressure sour gas would be routed 2.6 miles via a new 4-inch by 8-inch insulated pipe-in-pipe flowline from the planned remote well template to the existing 62A Production Platform, and then continue to shore through existing pipelines. A 3-inch diesel/dilution water flowline and power cable umbilical would be installed with the flowline. The pipe-in-pipe flowline utilized existing surplus pipe-in-pipe consisting of 4-inch corrosion resistant alloy (CRA) carrier pipe due to the high H2S content of the gas, with an X65 8-inch carbon steel jacket pipe. INTEC was responsible for the preliminary engineering from September 1998 through March 1999, and detailed engineering during March to May 1999.

The Mobile Bay MB63-2 well tie-back flowline bundle connects two well template platforms, MB63AB, an existing well template, and MB63AC a new well template. The well tie-back flowline bundle includes a Hastelloy/carbon steel pipe-in-pipe flowline, a diesel/water dilution service line and a power and communication cable. The production line is designed to transport sour gas at 300°F and 6,900 psi. Buried U-shaped expansion loops, at either end of the production line, will absorb an estimated 3 ft of expansion and will reduce pipeline axial forces to circumvent pipeline upheaval buckling. Engineering design began in late 1999, and construction was completed in the 4th Quarter of 2000.

In 2000, INTEC continued with the design of the MO 822-7 flowline system. This flowline system extends approximately 3 miles from a new remote well template to an existing production platform. The flowline system will consist of a 6-inch high temperature sour gas flowline, a 3-inch fuel gas line, and a 3-inch well service line. The gas production flowline will be a corrosion resistant alloy (CRA) clad pipeline with an outer jacket of carbon steel. INTEC’s scope of work included preliminary engineering and concept review, flowline route assessment, geotechnical data evaluation, assistance with permit application, material, selection and detailed flowline and riser design. Five enclosed expansion loops will be used to accommodate large thermal expansions, and reduce locked-in axial forces expected in the flowline. Construction is planned for 2nd Quarter of 2001.

Finally, INTEC is currently working on the detailed design of the MB 63-3 flowline and risers for a new ExxonMobil installation in Mobile Bay. A new well in Block 63 will be tied-back to an existing production platform in Block 62, a distance of approximately 8,100 ft. High temperature, high pressure (300°F/8,000psi) sour gas will be transported by a pipe-in-pipe flowline constructed from surplus pipe from the original project described above. The flowline will be installed in a bundle together with a 3.5-inch diesel/dilution line and a power cable. Approximately mid-way along the flowline route, the bundle will cross the Mobile Bay Shipping Channel. This 2,450 ft crossing will again be achieved by a water-to-water directional drilling method. ‘Z’-shaped expansion spools constructed from 4.5-inch Inconel pipe will be installed at each end of the flowline to control expansion into the risers. The completed flowline and expansion spools will trenched and buried.

The Hackers and Thrashers (HaT Trophy) Golf Tournament was held at the Bukit Unggul Country Golf Resort, Sepang, Malaysia on Saturday, 6 January. The INTEC (SEA) office located in Kuala Lumpur was represented by Steve Lee, our KL Business Development Manager. Other participants included representatives from Malaysian oil and gas related companies.

The competition was extremely competitive with John Cheesebrough and Dave Jobling, both from Lundin Malaysia Ltd having a tie score at the end of 18 holes. After counting only the last 3 holes on the front and back 9, John Cheesebrough was the eventual winner. John was 5 under par, handicapped adjusted, for the selected 6 holes, this is excellent golf by any standard, and deserving of a most hearty ‘congratulations’ to John Cheesebrough, winner of the HaT Trophy.

ohn Stearns, Senior Project Manager is the INTEC Employee of the Quarter. John first began working with INTEC in 1989. He was the Project Manager for a record setting deepwater GOM subsea project, the first using a diverless subsea flowline tie-in system in 1,700 ft water depth. After a 7 year tour of duty in Saudi Arabia where John was a Senior Construction Manager for several mega-sized offshore facilities projects, John and his family returned to Houston in 1999. He started right where he left off, as a Project Manager for another record setting subsea project in the Gulf of Mexico, the TotalFina Elf Canyon Express Project. This project is a first of a kind industry initiative, promoted by Elf, to jointly develop three deepwater subsea gas fields operated by three different operating companies through a common production gathering system in 7,250 ft water depth.

John and his family have traveled extensively throughout the world having lived overseas 11 years in the UK, Norway and the Middle East. John takes great pride in the fact that his wife, Agnes and children have traveled to over 35 countries around the world. Jennifer, 18, is a senior at Saint Agnes Academy and will be attending Oklahoma State University this fall. Mathew, 16, is a sophomore at Strake Jesuit College Preparatory. Agnes is a Speech Pathologist for Cypress Fairbanks Independent School District. The Stearns families have a very busy household as one would expect with two very active teens. John likes to spend his spare time hunting, fishing and scuba diving. John and his son particularly enjoy spear fishing 50 to 60 miles offshore in the Gulf of Mexico from the family boat during the summer months. Between family activities and challenging projects, John, who also has his pilot license, plans to get back into the cockpit and start flying again after several years absence.

As a continuation of our business development initiatives in Latin America, INTEC has opened an office in México. This office will consolidate new business relationships in México, and expand our services to new clients in Central America and the Caribbean.

México has become one of the major exploration centers in Latin America as the nation prepares to modernize PEMEX, the world's fifth largest oil company. Offshore work by PEMEX has traditionally been concentrated almost totally in the search for oil in the Campeche Bay area. However, given expectations of fast growing demand for energy resources in coming years, PEMEX has implemented a plan referred to as Strategic Program 2000-2008. The program focuses on exploration and production of crude oil and dry gas with significant effort directed toward onshore fields, as well on offshore fields along Mexico’s Gulf Coast. Over the next few years, INTEC hopes to become part of this effort thereby increasing our workload in the México office.

INTEC projects in the Campeche Bay area included technical and commercial evaluation of several Cantarell Project EPC contracts. The Cantarell Complex is located in the Bay of Campeche, Gulf of Mexico, 50 miles NNW of Ciudad del Carmen. The Cantarell Field is consider to be the sixth largest oil field in the world, with proven/probable hydrocarbon reserves of approximately 13.5 billion boe which represents approximately 26% of México’s total oil reserves. INTEC is also involved in the construction management of the AKAL Gas Compression Complex for Compression Services Company of Campeche (CSCC), a joint venture formed by Westcoast Energy and Marubini.

INTEC is currently providing services to PEMEX for a new project in the Cantarell Complex with a team lead by Néstor Pérez (México) and Victor Zerpa (Houston). The team is providing engineering, procurement and construction inspection services to PEMEX. It is important to highlight the effort lead by Néstor Goytia and Bryan Hartman with the support of INTEC’s management, to expand our services to more clients throughout Latin America. With the formation of INTEC México, one of the main steps towards achieving this goal has been realized.

Our team in México City looks forward to working with other INTEC personnel, and offers the opportunity to learn about México’s pre-hispanic, colonial and modern cultures. México City is a very cosmopolitan city, teeming with opportunity and challenge, and its inhabitants and their outgoing hospitality will make your visit a pleasant one.