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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