Burullus Gas Scarab/Saffron Project, Egypt
The contract for the Burullus Gas Scarab/Saffron project in Egypt has been officially awarded to the INTEC-BECHTEL consortium. On Monday, November 29, 10:15PM local time in London, Willem Timmermans signed the contract on INTEC’s behalf. This concluded almost three weeks of negotiations with BG and their Partners. Our contract is with Burullus Gas Company, a Joint Venture between EGPC, BG International and Edison; a newly formed Egyptian operating company for this development. For INTEC, this is the largest contract to date.

As Deepwater Managing Contractor (DMC), INTEC-BECHTEL will be responsible for managing the engineering, procurement, construction, and installation and commissioning of all production facilities. This includes the 8-well subsea production system and 52-mile tieback to shore, as well as the onshore gas processing plant, and the tie-in to the local gas distribution system. INTEC will be responsible for the engineering and construction management of all the offshore systems while BECHTEL will assume responsibility for the design and construction of the onshore facilities and provide overall project management.

Our eighth floor project office will be scene for the Front End Engineering and Design (FEED) phase over the next 10 months. In addition to our own team, we will host approximately 10 client representatives and an equal number of BECHTEL people. In the August/September time frame next year our project team will relocate to the BECHTEL office in London for the procurement phase and, at the end of 2001, the team will move to Egypt for the installation and commissioning. First gas is planned for January 2002.

Not only is this a highly prestigious project and a real coup for INTEC and BECHTEL, the contract also allows us to realize additional bonus payments by bringing in the project under budget and within schedule. We are very confident that Bill Philliber (INTEC) and Barrie Logan (BECHTEL), with their integrated team of premium quality personnel, are up to this formidable task.

Santa Fe Energy Panyu 4-2 Field Development, China
INTEC Engineering has been awarded the engineering activities for preparation of the Master Design Engineering for the Panyu 4-2 Field Development in the Pearl River Basin, South China Sea, in approximately 97 meters water depth. The work is being carried out on behalf of Santa Fe Energy Resources China, Ltd. The field development scenario involves an FPSO and Fixed Drilling Wellhead Platform, with flowlines and flexible risers. Graham Parker has been assigned as overall Project Manager as well as the FPSO Lead Engineer due to his extensive experience in Floating Production systems and FPSO Field Developments. Alliance Engineering, subcontractor to INTEC, is performing the engineering services related to the FPSO production facilities, platform and platform facilities.

Export to the FPSO from the Fixed Wellhead Platform will be via dual insulated (pipe-in-pipe) flowlines. Flexible “Lazy-S” risers with mid-depth buoys will be installed at the FPSO and connected to a PLEM. The selected FPSO will be either a conversion or a newbuild with one million-barrel storage capacity. The FPSO mooring system will be selected as permanent or disconnectable. The Master Design Engineering will be used in the preparation of the Overall Development Plan (ODP) to be submitted to the Chinese authorities for approval. First Oil is scheduled in October 2002.

This is a prestigious project that will consolidate INTEC’s presence in the developing and high potential offshore market area of Southeast Asia.

(Texaco) Star Deep Water Petroleum Ltd Agbami Field Development, Nigeria
INTEC Engineering, Inc., was recently awarded the Front End Engineering Design for Star’s Offshore Nigeria Agbami Field Development. INTEC was selected as the prime engineering contractor to develop the design concept and prepare EPCI bid packages for a deepwater FPSO and Subsea Systems. INTEC will design and specify the FPSO vessel and the Subsea Systems, while Mustang Engineering is subcontracted to design and specify the Topsides Systems. Ken MacKenzie and Ron Ledbetter are leading the INTEC team of FPSO and Subsea System specialists involved in this stimulating deepwater challenge.

Malaysian Liquefied Natural Gas Tiga (MLNG 3) pipelines detailed design project is currently our largest project in the region. Some of the other projects carried out to date include:

• Total Moattama Yadana pipeline detailed design for Saipem
• Seligi-F and Tapis-E detailed design for Esso Production Malaysia Inc and
• AMRJ-1 / Saints, Tutong and Ampa Fairley detailed design for Brunei Shell Petroleum

Coming from the land of the first Single Point Mooring loading system (in Miri, Sarawak), INTEC SEA can truly claim to be Asia’s leader in Marine Terminals. Starting with Unocal SPM 2, we continued assisting our clients on:

• Four major SPM projects in Taiwan, (Shalung SPM 1, Shalung SPM 2, Talinpu SPM 1 Talinpu SPM 2)
• Star Refinery SPM in Rayong, Thailand
• Melaka Refinery SPM in Melaka, Malaysia and
• Balongan SPM in Indonesia

We have carried out several FPSO projects in the region. The principal achievement was the Project Management of the Unocal Erawan FSO life extension project. Others with notable involvement include:

• Maui ‘B’ for Shell Todd
• Ruby for Petronas Carigali
• PM3 for IPC
• Tantawan for Pogo
• MASA for Trenergy and
• Challis Venture and Buffalo for BHP

Indu Mahendran, General Manager, Kuala Lumpur

Now that this burning issue has been resolved, let’s see what else is happening. Well, business is picking up, in part because INTEC has captured a number of significant contracts that had been moving down the pipeline for some time, and partly because the increased cash flow from higher oil prices is dislodging some of the logjam of stalled oil and gas development projects. The wave front hit our Houston office first, then reached Kuala Lumpur, and can be seen already from Delft; Buenos Aires never did have a quiet period.

The exciting aspect of the newly awarded work is that it includes major long term deepwater pipeline and subsea projects, an area of special INTEC expertise, as well as a number of FSO/FPSO projects. We won some of these jobs in competition, others in cooperation with other firms in our business, most of whom are many times our size. Technical capabilities and flexibility are obviously good attributes to have.

In October we had our planning conference to prepare for next year. I will resist more millennium drivel and just say that we think 2000 will be a lot more exciting in terms of technical challenges and corporate growth than 1999. It’s about time! During the second half of this year we sort of got becalmed, but we didn’t reduce our crew in the expectation that the wind would soon freshen. Well, it did; all sails are up, hands on deck, stations manned, and I feel pressure on the tiller again. There are oceans to navigate out there!

W. J. Timmermans
President

INTEC has already completed the marine survey in Long Island Sound. We are now busy selecting the best pipeline route and engineering this for permitting by various US Federal Agencies.

Project Manager is Gene Mullee. The project was kicked off in INTEC’s Delft office, where Ron Tucker and Gene completed an urgent conceptual study. In July Gene transferred back to Houston, where Todd Phillips joined the project as Project Engineer. Simon Bonnell managed the marine survey.

The project has some especially challenging tasks. The pipeline has to be brought ashore at a point in New York State close to The Bronx and Westchester County lines. One of the oldest developments in the Nation, this region is not only highly populated but has numerous public parks and wildlife sanctuaries as well. As if the environmental constraints were not enough, the geology in the region is highly complex and unpredictable. A product of very ancient upheaval and very recent gouging during the last Ice Age, the heavily folded bedrock and boulder-laced glacial deposits pop their heads out all over the site. This calls for special insight into available site info and careful selection of drilling and trenching methods.

The marine survey field work had its own challenges. Pipeline routing took the survey boat through intricate waterways off New Rochelle where the treacherous rocks disappear at high tide. It is said the nearby City Island boat repair shops do a roaring trade after holiday weekends.

Simon, Todd and Gene each spent a few weeks on board survey vessels in Long Island Sound. Todd, who grew up in Florida, caught his first glimpse of snowflakes as the cold November winds visited the site. Simon says it was business as usual, but admits to having been charmed by the beautiful fall colors in Elmsford, Connecticut, where we had our shore support office. With the Empire State Building and the Twin Towers visible from the survey site, Gene says he’s seen a wide variety of field locations – arctic, desert, jungle, but the Manhattan skyline tops them all!