LNG EXPANSION PROJECT GATHERS PACE by cometjunkie43

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									LNG EXPANSION PROJECT GATHERS PACE
Following final investment decisions by all of the North West
Shelf Venture joint venture participants, Woodside Director of
North West Shelf Ventures, Jack Hamilton, committed to
provision of full, fair and reasonable opportunities for Australian
industry in the Phase V LNG expansion project when confirming
the project start-up on June 10.
The announcement triggered the awarding of the Phase V
engineering, procurement and construction management
contract to Foster Wheeler WA Pty Ltd and WorleyParsons
Services Pty Ltd, a joint venture signalled by a letter of intent
agreed between the companies after a competitive tender in
                                                                      instrumentation services, design and construction of potable
                                                                      water, sewer and structural steelwork, production of quarry
                                                                      products as well as road relocations and construction.
                                                                      In September, FWW awarded a A$77 million Phase V Expansion
                                                                      contract to Houston-based McDermott International, Inc. for the
                                                                      construction engineering, procurement, fabrication, assembly
                                                                      and erection of 75 pre-assembled module and pipe rack units
                                                                      totalling nearly 22,000 tonnes. McDermott will also provide
                                                                      interface management with other contractors, suppliers and
                                                                      vendors to the LNG Phase V Expansion Project.
                                                                                                                                              WOODSIDE SETS UP SHOP IN KARRATHA
                                                                                                                                                                                                                                                                                              LNG PHASE V EXPANSION




                                                                                                                                                                                                                                                                                              PHASE V EXPANSION: SAFER, BETTER, FASTER
                                                                                                                                                                                                                                                                                              More than 500,000 hours have now been
                                                                                                                                                                                                                                                                                              worked by a small army of people in
                                                                                                                                                                                                                                                                                              Perth, Karratha, Batam (Indonesia) and
                                                                                                                                                                                                                                                                                                                                            Update
                                                                                                                                                                                                                                                                                                                                              Their task, in conjunction with myriad
                                                                                                                                                                                                                                                                                                                                              Australian and international contractors,
                                                                                                                                                                                                                                                                                                                                              will culminate with a North West Shelf
                                                                                                                                                                                                                                                                                                                                                                                             V       approach adopted in previous
                                                                                                                                                                                                                                                                                                                                                                                                     production expansions.
                                                                                                                                                                                                                                                                                                                                                                                                                                 NEWSLETTER 1
                                                                                                                                                                                                                                                                                                                                                                                                                              DECEMBER 2005




                                                                      Completed modules and pipe racks will be shipped from                                                                                                                                                                                                                                                                          Adoption of the so-called modular
February 2005.                                                                                                                                                                                                                                                                                Reading (England) to launch the Phase V         Venture production capacity increase to
                                                                      McDermott International’s Batam Island, Indonesia fabrication                                                                                                                                                                                                                                                                  approach will allow the Phase V
Foster Wheeler WorleyParsons (FWW), is now performing                 facility to Western Australia, then transported to the North West                                                                                                                                                       LNG Expansion Project approved by the           16.3 million tonnes a year, making it one
                                                                                                                                                                                                                                                                                              North West Shelf Venture partners back                                                                 Expansion project to be completed
Phase V Expansion engineering and procurement from its home           Shelf Venture's Burrup Peninsula LNG production facility, where                                                                                                                                                                                                         of the largest LNG producers in the Asia-
                                                                                                                                                                                                                                                                                              in June.                                                                                               within 36 months, with first LNG
office in Reading, England.                                           the fifth train will be constructed.                                                                                                                                                                                                                                    Pacific region.
                                                                                                                                                                                                                                                                                                                                                                                                     deliveries from the new Train 5 expected




                                                                                                                                                                                                                                                                                              V
                                                                                                                                                                                                                                                                                              Such logistics provide a mere glimpse of        The Venture’s latest investment follows                by the end of 2008.
Woodside has established a resident team in the Reading               McDermott began structural fabrication work in October,
                                                                                                                                                                                                                                                                                              the effort now being applied to ensure
offices. The team is fully integrated into the FWW project team       although piping fabrication work is slated to start at the                                                                                                                                                                                                              the successful 2004 commissioning of a
                                                                                                                                                                                                                                                                                              the North West Shelf Venture’s fifth                                                                   About 55 to 60 per cent of the total
to oversee its activities, which adhere to the Australian Industry    beginning of 2006.                                                                                                                                                                                                                                                      fourth LNG processing train and second
                                                                                                                                                                                                                                                                                              liquefied natural gas processing train is                                                              project work scope – predominantly
Participation Policy successfully used on the NWSV Phase IV                                                                                                                                                                                                                                                                                   trunkline. Together, these major projects
                                                                      Offshore, Royal Boskalis Westminster nv has started the A$56                                                          The North West Shelf Venture Corporate Affairs team is working on ease of access for the          delivered safer, better and faster than its                                                            steel and pipe fabrication – will be
development.                                                                                                                                                                                Karratha community.                                                                               predecessors.                                   will enable an effective doubling of LNG
                                                                      million contract for dredging to develop an LNG loading jetty                                                                                                                                                                                                                                                                  developed in various overseas locations
                                                                                                                                                                                                                                                                                                                                              production capacity in about four years.
Primary responsibilities of the FWW team include achieving            spur, as well as a second loading berth, turning basin and                                                                                                                                                              Applying these three tenets to the 4.4                                                                 to produce 64 train modules ranging in
                                                                                                                                                                                            As construction for the Phase V LNG Expansion Project gathers pace, the                                                                           As a direct result of key project drivers              weight from 60 to 2,200 tonnes.
world-class health, safety and environmental performance,             approach channel for tankers.                                                                                                                                                                                           million tonnes per annum expansion of
                                                                                                                                                                                            North West Shelf Venture Corporate Affairs team has also started its own                                                                          including schedule, cost and local
maximising Australian industry opportunity where it is capable                                                                                                                              ‘site works’ with the opening of a shop front office in Karratha.                                 LNG production capacity while                                                                          While pre-assembly of some Train 5
                                                                      Boskalis’s dredging, drilling and blasting operations, which are                                                                                                                                                                                                        industry capacity and capability, the
and globally competitive, identification of 'second tier' sub-                                                                                                                                                                                                                                achieving world-class health, safety and                                                               equipment is helping to shield the
                                                                      expected to be completed by May 2006, are being done near                                                             Doors to the office were opened in December 2005 and provide a project                                                                            Phase V project strategy involves
supply and subcontract opportunities for local industry,                                                                                                                                                                                                                                      environmental performance will present                                                                 project schedule and cost from current
                                                                      Star Rock and the Woodside LNG terminal. Dredging and drilling
eliminating waste and duplication, provision of a streamlined
tendering system and encouraging contractors to employ
                                                                      will take place 24-hours-a-day, while blasting will be done
                                                                      during daylight only.
                                                                                                                                          EMPLOYMENT                                        focal point for community enquiries and information requests.
                                                                                                                                                                                            “Our presence in the town centre is important when so much Phase V
                                                                                                                                                                                                                                                                                              challenges the 300-strong team is keen
                                                                                                                                                                                                                                                                                              to meet.
                                                                                                                                                                                                                                                                                                                                              modularisation and pre-assembly
                                                                                                                                                                                                                                                                                                                                              techniques, unlike the “stick-build”                                                          cont. page 2

qualified Aboriginal people and Aboriginal enterprises.
In line with Woodside's Local Industry Participation Policy,
                                                                                                                                          ENQUIRIES                                         project work is going on in Karratha,” North West Shelf Corporate Affairs
                                                                                                                                                                                            Adviser Luke Blackbourn said.
Woodside and FWW have jointly executed a framework
agreement with the Industry Capability Network of Western
                                                                                                                                          Karratha locals are showing keen interest
                                                                                                                                          in Phase V LNG Expansion employment
                                                                                                                                                                                            “Setting up the shop front provides the community with quicker access
                                                                                                                                                                                            while also saving them the inconvenience of driving out to the Burrup
                                                                                                                                                                                                                                                                                              PREMIER GOES
                                                                                                                                                                                                                                                                                              “HANDS-ON” AT
Australia to maximise opportunities for capable local suppliers                                                                                                                             Peninsula gas plant.”
                                                                                                                                          opportunities, with more than 200 now
to supply to the Phase V Project.
                                                                                                                                          registered at the Chamber of Commerce             The office is on the corner of Morse Court and Balmoral Road.
Its initiatives include establishment of the FWW Eprocure web
site (http://eprocure.fwc.com/woodside_phaseV/main.htm)
                                                                                                                                          and Industry LNG Phase V Employment
                                                                                                                                          Enquiry Centre.                                                                                                                                     PHASE V LAUNCH
where the main suppliers and contractors to the Phase V                                                                                                                                  The Chamber of Commerce and                            apprentices and trainees across a
                                                                                                                                          Operating out of the Apprenticeships
Expansion Project encourage contact from suppliers seeking                                                                                                                               Industry is Western Australia’s largest                diverse range of occupations and
                                                                                                                                          Western Australia shop front on Balmoral                                                                                                            The Premier of Western Australia, Dr Geoff Gallop, officially
further opportunities for additional local industry participation.                                                                                                                       employer of apprentices and trainees                   locations, ensuring they will contribute
                                                                                                                                          Road, the Centre is a natural extension of                                                                                                          marked the start of the LNG Phase V Expansion Project with
Australian companies and suppliers without specialist                                                                                                                                    across a range of occupational areas                   to the efficient operation of their
                                                                                                                                          the Chamber’s statewide professional                                                                                                                a sod-turning ceremony at the Karratha Gas Plant on
knowledge or with capacity limits are also being encouraged to                                                                                                                           through Apprenticeships WA, which                      business.
                                                                                                                                          apprentice and trainee employment and                                                                                                               November 2, 2005.
form joint ventures with foreign companies to improve their                                                                                                                              places them with host employers. In
                                                                                                                                          management service.                                                                                   In addition to the Chamber's shop
competitiveness.                                                                                                                                                                         addition, the Chamber manages the                                                                    The ceremony was attended by a host of state government
                                                                                                                                                                                                                                                front, Allplant Services, which is part of
                                                                                                                                          The Chamber’s shop front houses seven          activities of over 100 apprentices                                                                   representatives, including Alan Carpenter, Minister for State
The Phase V Expansion Project team is also providing local                                                                                                                                                                                      the Macmahon Group, has also opened
                                                                                                                                          staff in addition to 10 on-site supervisors,   directly employed by other                                                                           Development and Energy, and Fred Riebeling, Member for North
Karratha businesses with contract opportunities for work                                                                                                                                                                                        its personnel office in Karratha at Unit
                                                                                                                                          while in total there are 21 Chamber            organisations.                                                                                       West Coastal.
including office maintenance, site maintenance, lifting services,                                                                                                                                                                               6, 2624 Balmoral Road.
                                                                                                                                          employees now in the North West.                                                                                                                    Representing the North West Shelf Venture were CEO, Dr Jack              Premier Dr Geoff Gallop gets into the swing of things at the official launch
office equipment and supplies, construction supplies, vehicle                                                                                                                            As well as providing additional
                                                                                                                                                                                                                                                The office aims to provide employment                                                                                  of the Phase V project in November
                                                                                                                                          Some 2,870 West Australians have now           services to existing customers in                                                                    Hamilton, Woodside General Manager Onshore Projects, Wim
maintenance, accommodation and workshop services.                                                                                                                                                                                               opportunities across a range of job
                                                                                                                                                                                         regional areas, Apprenticeships                                                                      Kemper, General Manager of the Karratha Gas Plant, John                  After the ceremony the guests toured the Karratha Gas Plant
                                                                                                                                          registered on the project’s Electronic                                                                categories including trades, plant and
Meanwhile, Australian construction company Macmahon                                                                                                                                      Western Australia provides other                                                                     Rigden and Woodside Chief Operating Officer, Keith Spence.               and checked progress on Phase V work, including site
                                                                                                                                          Resource Management System. Staff at                                                                  process operations, supervisory,
Contractors Pty Ltd is now being supervised and managed by                                                                                                                               companies with the opportunity to take                                                               Most of the Phase V Karratha team were also on hand to                   preparation and dredging for the LNG jetty spur. The party was
                                                                                                                                          the centre are also recommending direct                                                               technical and administrative. In
FWW following its successful tender for the A$50 million                                                                                                                                 advantage of its apprentice and trainee                                                              witness the milestone.                                                   impressed by the flow-on benefits generated by the gas plant
                                                                                                                                          contact with contractors already                                                                      conjunction with this, the Allplant
contract to deliver site preparation and temporary facilities at                                                                                                                         employment service.                                                                                                                                                           and expansion project.
                                                                                                                                          appointed on the Phase V Expansion to                                                                 office will play a key role in facilitating   Recognising the importance of the project to the community, Dr
the onshore gas plant.                                                                                                                                                                   Apprenticeships Western Australia                      Macmahon's local community support            Gallop said: "A project of this scale will bring significant and         “It will provide at least $900 million in local contracts and is the
                                                                                                                                          maximise candidates’ chances of
Awarding of the contract on July 28 establishes an important                                                                              securing a job.                                allows employers to host high quality                  program in the Pilbara.                       long-term economic benefits not only to the Pilbara, but also to         onshore catalyst to accelerate at least $3 billion of
new oil and gas industry relationship for Macmahon, which is                                                                                                                                                                                                                                  WA and Australia."                                                       infrastructure investment in the North West Shelf over the next
charged with delivering earthworks to prepare the foundation                                                                                                                                                                                                                                                                                                           five years,” said the Premier.
                                                                                                                                                                                                                                                                                              Noting that the peak workforce will be up to 1,500 in 2007, Dr
for the fifth LNG train, drill and blast services, relocation of                                                                                                                                                                                                                              Gallop said that the expansion would trigger additional projects         The party enjoyed a light lunch after all the shovel work before
transportable buildings, drainage, piping and electrical and
                                                                                                                                          The North West Shelf Joint
                                                                      The Macmahon on-site and FWW team at work                                                                                                                                                                               including ongoing maintenance work.                                      heading off to inspect other activities in the Pilbara.
                                                                                                                                          Venture Participants are:
SAFER, BETTER, FASTER
                                                                                           Australian skills and capability shortages, anticipated


cont. from page 1
                                                                                           Australian participation is still expected to be up to 45 per
                                                                                           cent, representing about A$900 million in local contracts.      PHASE V SUPPORT WINGS ITS WAY TO RFDS
                                                                                           The Phase V project team has been working with the
                                                                                           Industry Capability Network Western Australia to
                                                                                           maximise opportunities for Australian participation, with a
                                                                                           briefing to industry in Perth in February and community
                                                                                           briefings held in Roebourne and Karratha in August.
                                                                                           Together with associated infrastructure, including a jetty
                                                                                           spur and second LNG loading berth, the A$2 billion Phase
                                                                                           V Expansion will take three years – or five million hours -
                                                                                           to complete, in contrast to the 12 million hours required to
                                                                                           complete the Phase IV expansion in 2004.
                                                                                           When construction peaks around the middle of 2007, an
                                                                                           estimated 1,500 workers will be involved.
                                                                                           Woodside has awarded the engineering, procurement and
                                                                                           construction management contract for the expansion to
                                                                                           Foster Wheeler WA Pty and WorleyParsons Services Pty
                                                                                           Ltd (or Foster Wheeler WorleyParsons, better known as
                                                                                                                                                                                                                                                                                                                                                                                                FWW JV HSE Adviser Greg Colgrave drives the safety
                                                                                           FWW).                                                                                                                                                                                                                                                                                                message home to Phase V Expansion Project inductees.
                                                                                           Among many other things, FWW is now supervising and
                                                                                           managing fulfilment of the A$50 million site preparation
                                                                                           and temporary facilities development contract awarded to
                                                                                           Australian company Macmahon Contractors Pty Ltd on                                                                                                                                                        SAFETY MADE A PERSONAL COMMITMENT
                                                                                           June 28, 2005.
                                                                                                                                                                                                                                                                                                     Ensuring the safety of all team members      “People on this project are expected to         which concludes with the worker’s
                                                                                           "The award of this contract establishes a new relationship                                                                                                                                                is the key responsibility of all Phase V     work to exacting standards and a                supervisor conducting area and task-
                                                                                           between the North West Shelf Venture and Macmahon,                                                                                                                                                        Expansion Project personnel who              challenging schedule in a hot and harsh         specific inductions.”
                                                                                                                                                           RFDS Chief Pilot Western Operations Capt Michael Bleus proudly displays
                                                                                           which commenced site preparation work in August,”               the new Pilatus PC12 aircraft now in service in the Pilbara region.                                                                       understand that their tasks are              environment, while always putting the
Task force: Wim Kemper and some of his team lead the way on the Phase V LNG                Woodside General Manager Onshore Projects Wim                   Woodside Corporate Affairs Manager Warren Fish presents the latest                                                                        performed in the mission-critical            safety of people first.”                        It’s a safety commitment that’s made
Expansion Project, which will set new benchmarks in efficiency.                            Kemper said.                                                    Woodside donation from the LNG Phase V Expansion Project team.                                                                            environment of an operating gas plant.                                                       from the top down, with FWW JV Area
                                                                                                                                                                                                                                                                                                                                                  “Whatever help we can provide during
                                                                                                                                                                                                                                                                                                                                                                                                  Construction Manager, Christian Haddon
                                                                                                                                                                                                                                                                                                     That understanding is nurtured during        the induction process to kick-start this
                                                                                                                                                                                                                                                                                                                                                                                                  attending every induction to personally
                                                                                                                                                                                                                                                                                                     the Phase V Expansion Project induction      mindset is time well spent.”
PHASE V PROJECT GOES THE ‘EXTRA FATHOM’ FOR THE ENVIRONMENT                                                                                                                                                                                                                                          process coordinated by FWW JV Health
                                                                                                                                                                                                                                                                                                     Safety and Environment Adviser Greg          In aspiring to an incident-and injury-free
                                                                                                                                                                                                                                                                                                                                                                                                  greet all new starters and make
                                                                                                                                                                                                                                                                                                                                                                                                  introductions.
                                                                                                                                                                                                                                                                                                     Colgrave, who is charged with ensuring       project, Greg’s induction team not only
Woodside and its contractors are going                   for about one third of the total, will be           specialists, engineers and corporate                                                                                                                                                                                                 provides project details for new workers        Christian uses this opportunity to talk
                                                                                                                                                                                                                                                                                                     inductees take ownership of an
the “extra fathom” when it comes to                      dislodged using advanced drilling and               affairs staff.”                                                                                                                                                                                                                      but also an opportunity to share their          about the FWW Behaviour Based Safety
                                                                                                                                                                                                                                                                                                     incident- and injury-free project culture.
ensuring protection of Mermaid Sound’s                   blasting techniques.                                                                                                                                                                                                                                                                     safety experiences for the benefit of all.      program, one of several methods used
                                                                                                             The Phase V work was also based on the                                                                                                                                                  “What makes this project different from
marine environment as part of the Phase                                                                                                                                                                                                                                                                                                                                                           to set the Phase V Expansion Project
                                                         To ensure that the impacts on the marine            company’s experiences during the Phase                                                                                                                                                  other large-scale construction projects      “We don’t just sit everybody down and
V expansion project.                                                                                                                                                                                                                                                                                                                                                                              apart through delivery of ‘best-in-class’
                                                         environment are clearly understood and              4 Trunkline System Expansion Program.                                                                                                                                                   is that ours is being conducted within       deliver a set program,” says Greg. “We
                                                                                                                                                                                                                                     LNG Phase V Expansion Project team members are bolstering                                                                                                    health, safety and environmental
Although work for the new channel and                    responsibly managed, Woodside                                                                                                                                                                                                               an operating gas plant that will continue    take advantage of the induction
                                                                                                             Among impact minimisation is a ban on                                                                                   Woodside’s legacy of support for the Royal Flying Doctor                                                                                                     performance.
turning basin for the second LNG berth                   undertook a comprehensive public                                                                                                                                                                                                            operating throughout Phase V                 opportunity to talk about participants’
                                                                                                             night blasting of marine rock outcrops,                                                                                 Service (RFDS), with the latest $5,000 donation presented
and the Karratha gas plant loading                       environmental review and environmental                                                                                                                                                                                                      construction and works,” Greg said.          concerns, experiences and project
                                                                                                             delays in blasting patterns to distribute                                                                               during the annual RFDS Ball in the Arrivals Hall of Karratha                                                                                                 “The project induction raises the
terminal began in October this year,                     impact study in 1997-98.                                                                                                                                                                                                                                                                 expectations.
                                                                                                             energy impacts over a longer period                                                                                     International Airport on September 10.                          “This presents a whole new set of                                                            awareness of the team’s safety
development of a comprehensive
                                                         The program comprised extensive                     and mitigation strategies to minimise                                                                                                                                                   potential hazards to the people involved,    “It’s a lengthy process – from initial          aspirations for new people coming on
environmental management plan goes                                                                                                                                                                                                   In presenting the cheque, Woodside Corporate Affairs
                                                         consultation and briefings for community            time between drilling and blasting, as                                                                                                                                                  so the induction is spent discussing         approval for site access, followed by           to site and puts the rules in place to
back six years.                                                                                                                                                                                                                      Manager Karratha Gas Plant, Warren Fish noted that routine
                                                         stakeholders followed by an in-depth                large fish move away during the                                                                                                                                                         these hazards and the thorough               several hours in a group induction –            ensure safety of personnel and a job
The A$56 million maritime project was                                                                        drilling process.                                                                                                       maintenance shutdown safety incentive awards, combined
                                                         environmental impact assessment which                                                                                                                                                                                                       processes we employ to manage them.          then a staged introduction to the site,         well done,” Christian said.
awarded to Boskalis Australia Pty Ltd                                                                                                                                                                                                with miscellaneous donations, had delivered a further $31,000
                                                         also included potential social and health           Boskalis staff will be involved in
earlier this year. Boskalis’s parent                                                                                                                                                                                                 to the essential service provider over the past few years.
                                                         matters.                                            monitoring for mega fauna such as
company, Royal Boskalis Westminster                                                                                                                                                                                                  “However, the most striking demonstration of Woodside’s
                                                         ”Our mission then and now is to ensure              dolphins, turtles and whales that might                                                                                                                                                                                                Work on the A$80 million greenfields civil work for Phase V LNG project has started.
nv, was established in the early 1900’s
and today operates a large and versatile                 that the works comply with the
                                                         company’s environmental policy and
                                                                                                             swim near the work. If necessary, work
                                                                                                             will be halted to avoid disturbance to the
                                                                                                                                                                                                                                     commitment to the RFDS is in the form of almost $30,000
                                                                                                                                                                                                                                     making its way to RFDS coffers through voluntary payroll        GREENFIELDS                                    Scheduled for completion in April 2007, the contract was won by BGC Contracting, a
fleet of more than 300 craft in more than
                                                                                                                                                                                                                                                                                                     CIVIL WORKS
                                                                                                             animals.                                                                                                                deductions from Woodside staff,” he said.                                                                      division of Western Australia’s largest private company, BGC Australia.
50 countries.                                            standards,” said Emilio Papiccio,
                                                         Woodside’s Senior Environmental                     Additionally, the health of coral in the                                                                                “Clearly, Woodside employees and contractors place great                                                       The scope of work includes the installation of about 22,000 cubic metres of structural
Boskalis is responsible for the removal of
just over three million cubic metres of
sand, silts, cemented marine sediments
                                                         Advisor to the North West Shelf Joint
                                                         Venture.
                                                                                                             area will be monitored before and after
                                                                                                             the work as part of government
                                                                                                                                                                                                                                     value on the service RFDS provides to remote communities.”
                                                                                                                                                                                                                                     Woodside maintains a significant relationship with the RFDS,
                                                                                                                                                                                                                                                                                                     CONTRACT                                       concrete and footings, the installation of about 400 kilometres of electrical and
                                                                                                                                                                                                                                                                                                                                                    instrumentation wiring as well as associated civil work for the Phase V LNG
                                                                                                             conditions for the activity.                                                                                                                                                                                                           processing train.
and broken rock from the Mermaid Sound
berthing area. These materials, in
                                                         “Environmental management is actually
                                                         a major team effort involving a host of             The marine works contract is scheduled
                                                                                                                                                                                                                                     further reinforced with a $200,000 per year commitment (2003
                                                                                                                                                                                                                                     to 2007) to assist RFDS in its program to replace a number of   AWARDED                                        BGC’s successful bid follows its earlier work on the NWS Venture’s Phase IV LNG
particular subsea rock, which accounts                   disciplines including environmental                 for completion in May 2006.                                                                                             ageing aircraft.                                                                                               expansion project which was completed in mid-2004.

								
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