When INTEC commenced operations in Houston in March 1994, the original business plan included establishing regional offices in Southeast Asia and the North Sea areas in a relatively short period of time. This did not happen due to the 1986 catastrophic oil price drop; however, through the subsequent years, we have performed considerable amount of work in these regions, particularly Southeast Asia, which eventually, in May 1993, prompted Principal, Bert Schultz, to move to Kuala Lumpur as Managing Director of INTEC (SEA).

With Bert at the helm for three years, the KL office grew into a full service, albeit smaller, replica of the Houston office providing engineering and construction management for offshore pipelines, marine terminals, subsea and floating production systems with only minimum support from headquarters and, in doing so, is completely unique in the region.

INTEC is very pleased to announce its Engineering and Construction Management Agreement, effective April 15, 1997, with P.T. Singgar Mulia of Jakarta, Indonesia. This agreement will greatly enhance the ability of both companies to execute major contracts in this region.

In May of 1996, Bert passed on the leadership baton to Vural Dolen. Just one year later we are very pleased to announce that business is booming and INTEC (SEA) is the dominant player in this area.

• Petronas Carigali MLNG-Tiga Pipeline Project Detailed Design. Services include the detailed design of 36-inch, 32-inch and 22-inch gas transmission risers and pipelines totaling approximately 500 km in length between the Jintan Field, the Heland Field, the E11R-C riser platform and an onshore slugcatcher at the Bintulu Crude Oil Terminal (BCOT) located in Sarawak, East Malaysia.

• P.D. Port Terminal Services offshore tanker terminal Marine Survey Services for a crude oil offloading pipeline and mooring system to be installed offshore Port Dickson, Malaysia. Services include preparation of survey specifications, prequalification of survey contractors, preparation of ITB documentation and marine survey supervision.
• Bumi-Armada/Care Offshore S.A. IPC PM3 FPSO Project Engineering Support Services associated with the conversion of tanker-based FPSO System for the Bunga Kekwa Field Development located offshore Peninsular Malaysia.

• Malaysian Refining Company, PSR-2 SPM and Submarine Pipeline Project Construction Management Services for a 48-inch x 7 km offshore pipeline with CALM-type SPM to offload up to 300,000 DWT tankers and associated onshore pipeline facilities.

A year ago, the third INTEC international operating office was opened in Delft to service the markets of Europe, Middle East and Africa. It was perceived that the North Sea offshore market was fairly saturated by indigenous companies and, hence, held little promise for INTEC. Now that George Lagers and his expanding team have been at it for about a year, we can report that the results have exceeded our expectations in several ways.

We have been getting more work from the North Sea than expected, in large part because of our reputation in deepwater subsea technology, developed in the Gulf of Mexico. Clients are interested to see some of the "fit for purpose" solutions and associated economics applied to their prospective North Sea developments. In addition, a considerable amount of marine pipeline work has materialized, again with emphasis on deepwater, but this time for North Sea based clients with projects abroad, such as offshore The Philippines and in the Black Sea. Another source, deepwater developments offshore West Africa, has led to feasibility studies and technology development work for that area, and much more is expected from this region.

In the process, our Delft staff has grown to 18 plus several temporary transfers from Houston, and is expected to be at 30 plus by year-end, provided our ongoing recruiting program is successful. We have just exercised an option in our lease, almost doubling the available office space, so this growth has some place to go. This is not a limit, however, as we expect to see this growth continue for many years. Support systems, including communication and information management, are being implemented so that Delft has access to the same expertise and resources as the Houston and Kuala Lumpur offices. In short, things are moving right along; "'t loopt lekker" as we say in Dutch.

Katrina Albert, our receptionist/telephonist who is probably known by more people than any other single employee at INTEC, marvels at the kaleidoscope of multinational personalities she has met through her job. Katrina's cheerful, unflappable and winning ways on the telephone have proven a true asset for INTEC. She has an uncanny ability to find people who are away from their desk. Believe it, if Katrina cannot locate someone, he or she cannot be found by anyone!

Being a native born Houstonian and only out of Texas once in her life, she feels that working at INTEC and having the international exposure of our employees and clients have opened her eyes and imagination to much more of the world. Katrina looks forward to the day she can travel to all the places she is hearing about.

Looking to the future, Katrina thinks that she might want to become involved in Computer Aided Drafting (she started in INTEC's accounting department), however, she can't imagine a job she would enjoy any more than being the first INTEC representative y'all talk to when you drop by or call into INTEC's headquarters.

• Removal of all drilling equipment, mooring system, major equipment and accommodations
• Installation of "Blisters" on the inboard side of the two lower pontoons
• Installation of "Sponsons" on the four corner columns (extending the fore and aft dimensions of the columns, and changing the column shape from essentially square to a rectangular shape on three sides and a semicircular shape on the forward or aft ends of the four columns)
• Structural reinforcements of the four central columns and the upper hull
• Repairs and life extension of the basic hull and installed machinery
• Procurement and installation of the following major components:
  1. Ram Type Drilling System
  2. Reconditioned mud pump system
  3. Four new diesel / AC Generators
  4. SCR units for conversion of AC power into DC power for the mud pumps and miscellaneous equipment
  5. Two new thrusters
  6. Eight reconditioned windlasses, underwater fairleads
  7. New mooring chains, and high holding capacity anchors
  8. Two new cranes and pedestals
  9. Accommodations unit for approximately 100 personnel
  10. Three enclosed lifeboats
• Installation of 20,000 meters of new piping
• Installation of 60,000 meters of new electrical wiring
• Replacement of approximately 2,000 metric tons of steel, in addition to the Blisters and the Sponsons

DOLPHIN awarded multiple contracts to several firms for engineering services and to many major contractors, sub-contractors, and vendors for the conversion, repairs, and upgrading of the Mobile Offshore Drilling Unit (MODU).

INTEC seconded a team of five senior personnel to HARLAND & WOLFF to assist in resolving potential interface problems and to assimilate critical design data and drawings as required to accelerate completion of the drilling unit. The INTEC team includes Martyn Witton from the Delft office; along with Kim Dyson, Bryan Hartman, Rick Chaney, and Bill Auer from the Houston office. The INTEC project team members will be working in Belfast, N. Ireland and Stavanger, Norway for several weeks. Joe W. Key traveled to Europe for the kickoff meetings, and functions from Houston as the Project Sponsor.

Joe W. Key and Bill Auer had the privilege of listening to David Livingstone, a senior Naval Architect at HARLAND & WOLFF, describing his experiences last year when he was part of the expedition that prepared the documentary TV program on the Titanic. David was one of 50 personnel on the expedition, and was one of the three persons who actually went down (twice) in the submarine. David was the chief technical advisor to the underwater group and was able to identify major components of the vessel, based on drawings that were available in the archives of HARLAND & WOLFF, who built the Titanic 85 years ago. David now claims to hold the record in completing "as-built" drawings for a vessel because he found some portholes on the Titanic that did not actually match the shipyard "record" drawings. Based on some of his personal observations, David did not agree with some of the "theories" which have been popular in the past regarding the sinking of the vessel. The comments from David gave a new meaning to the term "Subsea Engineering"! Willem Timmermans threatens to charge Joe and Bill for the history education, while Jim Gillespie seems to think that the entire team is indebted for the joy of visiting IRELAND, and getting to stay in a beautiful, historical hotel in Bangor!

Many thanks to a group of talented, dedicated employees who have risen to the challenge, and who are making major contributions to a very challenging project.

Ever since we crawled out of the sea millions of years ago, and lost our gills, the underwater world has become an unfamiliar place where only the more daring (and, some would argue, slightly deranged) people we call divers would venture. Sailors have been traveling the sea surface for ages, but most of them were not able to swim, and even today, many of us, who can, are uneasy swimming in deep water thinking of all that lurks below. So here we are back at our erstwhile habitat, spending much of our time designing and planning underwater systems. Our subsea exploits have moved to depths where we have to rely on remote operated vehicles and other instruments to go "where no man has gone before", so fortunately we don't have to go below ourselves any more. However, this means we cannot any longer rely on our direct senses. The shoreline pretty much separates what we know from what we can only imagine aided by modern acoustic mapping technologies.

Our engineers and surveyors are roaming the Gulf of Mexico, the South China Sea, the Black Sea and other areas of invisible topography, to map the seafloor and find suitable places for underwater production facilities and pipelines. They rely on modern instrumentation which generates millions of data points in a dense grid, creates contour maps and near photographic images of what we cannot see, and sometimes isn't there either. The problem with all this technology is that it generates data, which can easily be mistaken for information. Real pinnacles and outcrops have been known to be "processed away", and sometimes imaginary obstructions are created by spikes or other spurious data. We can get visual verification by using an ROV, but this can be like trying to find your way in the absolute dark in a strange city without street names using only a flashlight.

All of these tools combined, however, serve to create an image in the mind of the subsea or pipeline engineer which, fortunately for the consulting engineering profession, is still a very

CONGRATULATIONS

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

Craig Fitzgerald - Senior Project Engineer
Brandi Flowers - Secretary

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

Jay Chapman	Jennifer Forgue
John Giblin	Michael Johnson
Patricia Kelly	Paul Kronfield
Valerie O'Brien	Paula Powell
Philippe Roelants	Mario Ruiz
Andrew Torstrick

In Partnership with Shell Offshore, Inc. (SOI), INTEC provided the initial screening studies and subsequent Candidate System Concept Evaluation study for the subsea field development. The subsea system recommenda-tions were approved by SOI, and INTEC's role evolved into two major categories:

Category 1.

System Engineering, which consisted of developing a Design Basis Document, then working with the Tahoe II Project Team, including Reservoir, Platform Structures, Platform Processing, Operations, Drilling and Completion, Shell Pipelines, and Shell Alliance (FMC and KFI), to refine the design and implement the construction in accordance with the agreed fast-track schedule; and

Category 2.

Hardware Integration and Field Installation, which included developing the System Integration Test procedures and helping implement the SIT, planning the subsea tree and the Umbilical Terminal Structure installation operations in cooperation with Shell's Drilling and Completion group, and assisting in the offshore installation of the subsea trees and associated equipment.

INTEC is also helping Chevron Petroleum Technology Company (CPTC) to develop pipelay procedures for 6,000 ft and 10,000 ft water depths. This involves evaluation of modified S, J and G lay systems, and the SLURF method pioneered by Allseas. In anticipation of this work, we have invested in the latest version of "OFFPIPE" which will enable us to model the pipelay system with a larger number of nodes, and also has better dynamic analysis capability.

The Limit State Design of deepwater pipelines and flowlines is another area where INTEC is becoming active. In a paper presented at OTC this year (OTC 8526), it was shown that the industry could save millions of dollars by implementing new design practices. INTEC is a member of the API RP1111 revision committee currently investigating changes to the existing code.

For BP Exploration (Alaska), Inc Safety Award Incentive

For Planave S.A., Guanabara Bay Import Terminal

For BP Exploration (Alaska) Inc., New Field Development - Liberty

For Santa Fe Energy Resources, Inc., Knight Field Development

For Santa Fe Energy Resources, Inc., Ruby Field Development

For Santa Fe Energy Resources, Inc., Ruby Field Development

For Conoco, Inc., Laverne Gas Plant PSI/PHA

For Texaco Group, Inc., Gorgon Workstage 2

For Vintage Petroleum, Inc., Galveston Bay Pipeline Construction Specification

For Oiltanking Houston, Cost estimate for bulkhead and sheet piling at Jose Terminal - Venezuela

For Marathon Oil Company, Oyster EB917 Deepwater Operation Plan - preliminary

For Maritima Mexicana S.A. de C.V., Storage and Discharge Floating System

For Union Pacific Resources, Update conceptual design of the minispar concept

For Union Pacific Resources, Front End Engineering Design of production system for development of MC Block 711/755

For BHP Petroleum, BHP Griffin Phase II Conceptual Engineering

For Esso Exploration and Production Chad, Inc., Review/Update FSO Conversion Functional Specifications

For Marathon Upstream Sakhalin Services, Ltd., Review of Company's FSO Inquiry Documents and Tender Documents – Sakhalin II Project

For Heeremac, Balder evaluation for reeling of EMC pipelines

For Quintana y Otros U.T.E., Inspection and certification of glycol regeneration and glycol tower

For Sipetrol S.A., Support diving activities

For Union Pacific Resources, Review of pipeline insulation methods

For Total Austral S.A., Argo Satellite Well Development

For Conoco NG&GP, Garden City Gas Plant (TX) PHA Re-do/Re-evaluation

For Conoco NG&GP, Bailey Gas Plant PHA - San Angelo, TX

For Texaco Group, Inc., Evaluation of Subsea and Pipeline Technology Strategic Planning Study

For Exxon Company U.S.A., Modifications to design basis and cost estimate

For Marathon Oil Company, Arnold Development (EW 963) support

For Oryx Energy, Develop satellite wells in neighboring blocks for producing to Neptune Spar

For Enron Oil & Gas International, Tapti Gas Pipeline - Offshore India

For Exxon Company U.S.A., Conversion of 111-2 dilution line to produced gas service

For Vanco Energy Company, Preliminary field and area development offshore Gabon, West Africa

For BP Exploration, Review of Subsea Equipment on the Foinave project in Aberdeen, Scotland

For Shell Offshore Inc., SE Tahoe Workover/Recompletion

For Nederlandse Aardolie Maatschappij, B.V. (NAM), Prequalification

For Texaco Group, Inc., Texaco Gemini Project - preliminary engineering

For Mobil Equitorial Guinea, Inc., Engineering and construction management of flexible flowlines and risers for water flood system

For Petro-Marine, ETIM Expansion Project

For Shell Offshore Inc., Shelf/Deepwater Study Team Project

For Harland and Wolff, Bideford drill rig upgrade

For Chevron Petroleum and Technology (CPTC), Cost reduction on deepwater pipeline installation

For Santa Fe Energy Resources, Pre-development engineering -– Amundsen Development

For Texaco Group, Inc., Survey of potential host location for Ladybug prospect

For Ebytem, Flow analysis - Rosales Pipeline - Argentina

For Sipetrol S.A., Laybarge Superintendent of laybarge activities at the Strait of Magellan

For Texaco Group, Inc., General consulting for Fuji Phase 4 effort

For Conoco Europe Gas Ltd., Development of a simplified screening cost analysis tool for FSO