Ross McHardy: The international publication for PSN Issue 11 2009 A customer perspective Pg. 3 Breathing new life International exchange. Pg. 16 Competency based training in Vietnam. Pg. 18 A mammoth performance. Pg. 19 The North Sea is thriving and full of potential. Pg. 6 t en em lS e pl ca ica ssu up i ch this pu ar t in ou ge nd n ed ll- le ud Te cl In a 0 pa tr ce 01 Ex re 2 nt k & or w e Se et N Editors’ intro A s the year draws to a close, we bring you another Contents glimpse into the PSN story through the eyes of the people in our growing network. The dawn of a new era in the North Sea presents exciting fresh ways of working with our customers, and significant new contracts with BP and Lundin mark a new chapter for PSN in this key market. Ross McHardy, Lundin’s engineering and projects manager, explains why our new partnership makes sense and joins in the debate on the North Sea’s future. We get an insight into the dynamic life of a chief engineer at PSN and hear what the team gets involved with behind The Chiefs the scenes. Flick to page 10 to read the buzz surrounding our Riding the Rapids conclusion and learn why our snap-shot of top-level industry opinion hit ... we introduce the PSN chief engineers page 8 a nerve. In 2009 we smashed our records for shutdowns, mobilising 1800 personnel to work on our customers’ platforms and earning commendations in the process. Here, PSN’s Stuart Creaney and Jim Devine give us the low-down. We get the story on our Gabon project so far; explain why our joint venture PSN KazStroy is showing we have the expertise to match the job – whatever 10 15 20 21 the scale, and bring you the scoop on how we are building competence in Vietnam. Get the facts and technical 05 Profile: Robert Burnett-Wood Thank you to everyone who contributed to issue 11 of Network: Ali Green, Andrea Bryce, Bernard Looney, Bill Gibson, Bill Riley, Billy know-how in our second Morrice, Bob Keiller, Caroline Bett, Chris Walbank, Dave McBain, Farzin technical insert, as our expert Robert Burnett-Wood tells us about his role as PSN regional Keshmiri, Georgie Turner, James Crawford, Joanne Gashumba, John engineers rise to the challenge business director for the ERC region. Baird, John Popovic, John Hargreaves, John Kearney, Ken Doerr, Kevin Watson, Louise Nicolson, Maggie Leitch, Mike Stone, Natalie Fowler, with innovative solutions and Paul Shanks, Peter Brown, Mohammad Nabavian, Richard Munro, Robert unwrap some of their recent 12 High-octane partnership Bell, Robert Burnett-Wood, Robert Stevenson, Ron High, Ross McHardy, Simon Bell, Stephen Robertson, Steve Bage, Steve Cobban, Stuart out of the box thinking. We interview Suhail Mohamed Al Mazrouei, Deputy CEO Creaney, Suhail Mohamed Al Mazrouei, Trevor Woodhead, Vikki Douglas This is who we are and what and Senior Vice President of New Business Development of we do. Send us your stories Mubadala Oil & Gas. Network is published without warranty, and although we make and pictures for the next issue every effort to ensure information is accurate, PSN will not be held liable for damage or losses that result as a consequence of any and we hope you enjoy this one. 14 Record contract win with BP inaccuracies in or reliance upon such information. This publication has been printed using the latest environmentally We look at the significance of this recently awarded contract friendly printing techniques which include processless plate technol- Kenna Blackhall ogy. This technology removes the need for chemicals entirely at worth in excess of £200 million. Editor pre-press stage and reduces the chemical element in T: +44 (0)1224 777014 printing. E: email@example.com 22 Gabon - the story so far This paper uses 100% ECF (Elemental Chlorine Free) pulp, has FSC certification for being sourced from well- Varihi Scott We get the low down on one of Africa’s top ten oil producing managed mixed sources and is totally recyclable. Editor countries. Designed and produced in-house by the PSN Corporate Communications Team. T: +44 (0)1224 777821 E: firstname.lastname@example.org 23 Living values We look at some of the ways PSN has been helping out in the communities in which we work. I n September this year, we were delighted to announce the award of a significant multi- million dollar five year contract with Lundin Britain Limited, a subsidiary of Lundin Petroleum, the Swedish independent oil and gas exploration and production company. Under the scope of this new contract, we will provide engineering and construction support for its Heather and Thistle assets in the UK sector of the northern North Sea. A customer perspective: Ross McHardy Lundin Britain Limited Lundin is an exciting new company to add to our portfolio, with world-class assets in Europe, Africa, Russia and the Far East, boasting proven and probable reserves of a staggering 265 million barrels of oil equivalent. Here, Ross McHardy, Lundin Britain’s engineering and projects manager talks to Network about the current issues in the North Sea and explains how he sees the role of contractors changing in the near future. What are the main issues affecting the industry at present in this region? therefore require to be tied back to the types of assets mentioned above. In doing so, they help prolong the assets’ lifespan, but the extended life needs to The North Sea infrastructure is now a mature market with many assets, such as be demonstrated as part of the process which becomes a circular argument. To our own Heather and Thistle platforms now well beyond their original design lives. prolong the region’s lifespan, I believe the industry needs to collaborate more to This presents a challenge for us all to best manage investments in order to prioritise ensure we can develop these reserves cost effectively. production enhancement related activities, against those required to maintain asset integrity and ensure we continue to operate safely. In addition, the significant How can PSN assist Lundin in providing solutions to these issues? fluctuations in the oil price and the parallel high cost base makes this balance and Although we talk of mature fields, this is a thriving industry in need of innovation the development of medium to long-term strategies significantly more difficult. and cost effective solutions. If we can maximise value, our assets will be As a result of the North Sea maturity, most of the recent discoveries and around longer and provide the local community with a long-term stable working developments are smaller and do not work as standalone developments. They environment. More specifically, I’m looking for PSN as our engineering contractor 3 Lundin Britain Limited expects its suppliers to provide cost effective, value rich, services. We are thrilled to have impressed Lundin with our people, culture, flexibility, systems and drive for continuous improvement. This contract adds to our growing appeal to the emerging independent market in the North Sea and we look forward to starting work this winter. Peter Brown, managing director - UK to find and utilise new technologies for topsides number of specialist personnel. For this reason, we the oil price dropped by 75% making any investment applications that we have perhaps used in the past. strive to achieve outstanding relations with all our a gamble. contractors, and believe this is achieved through PSN has many customers and therefore more exposure Nevertheless, if you have company stability, cash mutual respect, integrity, aligned goals and a collective to different ideas and solutions. We are looking and guts, then periods of low are a fantastic time to drive to succeed. forward to working together to draw on its extensive invest as you can obtain lower cost projects that come experience. Do you see the role of contractors changing in to fruition as the oil price rises. Timing is therefore the future? everything, and everyone is trying to get it right. What qualities do you look for in a contractor company? Undoubtedly, but how far that will go will depend What is your near to mid-term business focus on each players’ desire to take on risk in terms of for Lundin in the North Sea? Lundin looks for contractors with a solid foundation in investment. The industry is very different now to terms of culture and people. It’s important that our In recent years, Lundin has invested heavily in asset when I first joined, and I’m sure it will evolve further. contractors have a clear understanding of the role integrity, principally to secure the future of our assets. they have been selected to perform and how their What do you see as the biggest challenge to Early January brings new wells and the first drilling knowledge and experience can benefit us all. From sustaining zero safety incidents in this region? activity on Thistle in more than 20 years – a great a longevity perspective, we also look for how their result and a culmination of four years hard work from Complacency. There is no doubt that the industry has organisation fits with our own goals and objectives. many people and supporting companies. Lundin also come a long way and has a continued commitment plans to drill at Broom in 2010 and on completion of In terms of project management and engineering to safety, but we all need to ensure there’s continual improvement work to the Heather rig, we plan to drill I believe methodology is well established and revitalisation and subtle change to keep it progressive. there in 2011. N relatively straightforward if applied properly. The We need to be constantly nurturing leadership and key to improvement is to harness new technology personal responsibility for safety at all levels and must and maximise the quality thinking time that brings maintain a balanced focus between behavioural and innovation. process safety. How important are strong partnerships between Given the current economic situation is this a operators and contractors for the continued time to invest or pull in the horns? prosperity of the oil and gas industry in this region? Literally the million dollar question! The pattern over the last 12 months has been to hold on to cash to Strong partnerships are fundamental in all walks of ensure survival, both in the wider economic world and life, but integral to an organisation such as Lundin, our own industry. This is understandable given that whose philosophy is to employ a relatively small Ross McHardy Engineering and projects manager, Lundin Britain In his current role, Ross is responsible for all engineering modifications and projects from concept to delivery. He has worked for Lundin since 2004 when they entered the North Sea. Ross initially graduated in civil engineering and went on to gain a masters in offshore engineering before joining Total in 1994 working within the integrity, modifications and project groups as a structural engineer. He achieved chartered status with IStructE in 2000. Ross spent some time in Australia before joining DNO in 1999 as part of the team whose remit was to extend the field life of the Heather and subsequently the Thistle platform. He has held a number of technical roles including technical authority positions for structures and pipelines and represented the company in the fields of decommissioning and subsea engineering before moving into management. He has been in his current role since 2005. Up close & personal What is your favourite book? I never read a book twice so I’m not sure I have a favourite but I like Scottish fiction - escapism with a bit of grit and reality. If you could live anywhere in the world where would it be? Salo, Lake Garda, Italy What’s the best piece of advice you have ever received? Life’s easy if you consider things from another point of view …..DB Boulevard 2001 If you hadn’t become involved in the oil and gas industry, what would you have done? Signed for Dundee United...obviously 4 Profile: Robert Burnett- Wood Robert Burnett-Wood joined us in November last year as regional business director for the ERC region, bringing with him over twenty years’ industry experience and an enthusiasm for the role that was hard to match. A year into the job, we caught up with him to find out what it was like managing this vast region. I thrive on the challenges of working A regular 9-5 life isn’t an option for Localisation in the ERC (Europe, Russia, Robert who spends much of his time As major projects come back on the Caspian) region”, explains Robert. travelling between countries. “At the table, Robert tells us that the chronic “As regional business director I’m moment I don’t have a permanent shortage of skilled people in the responsible for its operational success location so my base is my suitcase”, industry may once again be at the and ensuring we embed a strong HSE says Robert. “My family live in the UK forefront. “Moving forward there will culture in the projects we deliver. I’m and I travel extensively, so more often inevitably be pressure on companies tasked with ensuring the business than not I’m in a hotel room.” like PSN to recruit qualified staff and grows successfully in the future and Changing dynamics this is a critical component to our to achieve this I work closely with the success. It’s key that governments and sales director for the region, Marcus Talking about the key issues affecting industry representatives join forces now Hartland-Mahon and his team. the region, he explains there are several to encourage new blood into an ageing seen a sharp increase in our proposal focus areas: “The changing dynamics activities within both countries. The Managing such a colossal region, workforce. of maintaining supply, climate change, Aberdeen support for this has been brings clear challenges, says Robert: coupled with affordability and security “We’re preparing for this shortfall by invaluable and a true example of our “The sheer geographical size presents of supplies from Russia and the Caspian creating a culture within the region network in action.” various obstacles with travel and region are all high on Europe’s agenda. that attracts younger people, with a communication. Each country has The dramatic global economic downturn focus on developing local and regional A look ahead nuances that make them uniquely throughout 2009 and commodity price talent. This coupled with investment different in our approach to business It’s clear that since he picked up the volatility, has led to uncertain energy in language training in the region has and people.” baton for the ERC region, he has hit the policies and oil price instability. enabled us to achieve the levels of ground running and truly risen to the Industry expert localisation that other companies aspire “We can address this by applying challenge. to. Robert has a proven track record in prudent management techniques across An industry expert, with the enthusiasm managing and delivering multi-million the region including evaluating our “We’re committed to the continued and passion required for this high pound projects, and his in-depth supply chain process and constantly re- investment in people and encourage profile job - we’re confident that the knowledge of how to achieve and evaluating our capital plan against our local talent to rise up through the ranks future for both Robert and PSN in this sustain performance from his work return expectations”, says Robert. in the business. Getting involved in region is looking good. with blue-chip and internationally this, is one of the most satisfying and “We’re actively involved in the region known organisations, means the rewarding elements of the job.” For more information on the ERC attending educational seminars with challenges of the region are well within region, contact: N local political figures to understand Using the network his capabilities. He also has a string how each country’s policy and agenda Robert Burnett-Wood of institutional memberships under Talking about plans for growth Robert evolves. The long-term goal is to Regional business director - ERC Region his belt, including the Association of tells us focus areas for PSN are Russia ensure we understand and anticipate T: +44 (0) 1224 777128 Project Managers, Institute of Operation and Romania. “Thanks to excellent the national energy policies within the E: email@example.com Managers, Chartered Management work from our sales director for Russia, region and foresee any future changes Institute, and the Institute of Natalia, and John Spittal, country that may impact our growth potential Engineering and Technology. manager in Romania, we have already and existing operations.” 5 ANew The North S I n the 1970s, I was told that the North Sea oil and gas industry wouldn’t last until the end of the century, far less to the end of my career. Today, I’m hiring graduates that can build a healthy, secure life-long career in the North Sea.” These are the words of PSN’s UK managing director, Peter Brown. Network sat down with Peter and PSN’s business development manager for the UK and Europe, Robert Stevenson, to find out how these industry experts view the future of the North Sea. Two markets place to work in the oil and “are here because of significant developments in gas industry. exploration and evaluation technology. The last 10 “The North Sea is actually two different markets”, says years have seen significant advances in seismic Robert, “upstream, there are the offshore drilling rigs, “Our long-standing technology, which have revealed many new reservoirs. production platforms and onshore reception facilities. customers are also placing The energy majors have a large cost base and broad The survival of these depends on investment from an increasing emphasis business interests so they might not see the new finds oil and gas production companies. Forty percent on competency, for both as worthy of investment, but smaller companies with of the North Sea’s oil and gas is still in the ground, onshore and offshore lower overheads are capitalising both on the new so geologically we’re in good shape but the oil employees. We welcome discoveries and on the assets that the majors are companies are affected by the availability of credit for this development as selling off. Investments by Talisman, Lundin and CNR investment and the price competency and safety go Peter Brown, have had quite an impact in recent years. they can get for selling hand-in-hand. UK managing director the oil they produce. The “So far I’ve seen three generations of operators and “We have the right systems downstream market of I expect to see two or three more. For example, the – our competency system is accredited by the oil and refineries and processing Beatrice field was originally discovered in the mid-70s gas academy, OPITO; we work with the best assessors plants is much more closely and owned by BP, which is celebrating its centenary and we also challenge our people to be responsible linked to manufacturing this year. In 1997 Talisman bought Beatrice from BP; for setting themselves high standards in competency industries, which are their in the 1990s Talisman Energy was one of the new and being responsible for achieving those standards. main customers. The UK independents. Now Talisman is one of the established, This combination of the right systems, assessors and manufacturing industry has senior players and last year they leased Beatrice motivated people gives PSN people the necessary been in the doldrums for to Ithaca Energy, which is part of the current new Robert Stevenson, edge. more than a year now but generation of operators. With each new generation business development it will pick up again as the “While the safety and competency bar continues to we see changes in objectives and working styles, manager, UK & Europe recession lifts.” rise, our customers are also looking to minimise costs which tests the received wisdom and keeps new ideas and for increased transparency. PSN’s robust systems pumping through the industry. Traditional customers raising the bar for projects and controls are continually being “If I was to set a challenge to my employees it would “Safety has always been our number one priority”, improved and the developments are geared towards be to bring me a new idea each week.” says Peter, “but even more so today, when an incident- greater integration. Our new technologies provide real free project is now a basic expectation held by all our time access to our data resulting in direct control of Who’s buying customers. We ensure that every employee makes a costs. This enhanced visibility was a key differentiator “The number of opportunities we are tendering signed commitment to our core values, of which safety for us in securing the recent Lundin contract for in 2009 has increased threefold since 2008”, is number one – we all sign a book called Joining (see page 3). says Robert. “We’ve seen a lot of long-term the Network that makes this explicit. PSN is also New companies engineering and construction, and operations and very much involved with the ‘Step Change in Safety’ maintenance invitations to tender. We’re seeing organisation, which aims to make the UK the safest “Many of the new companies”, continues Peter, 6 Sea Chapter If I was to set a challenge to my employees UK fact box: it would be to bring me a • From 2010 to 2012 there is $1,900m of potential work • PSN won over $550m worth of work in 2009 new idea each week. • We bid for 36 contracts with a 73% success rate Peter Brown, UK director major standalone projects for large platform enhancements, as well as requests This is the right place and the right time for front end engineering studies and specialist services like our advanced integrity This is the right place and the right time “Globally,” says Peter, “spending is and environmental engineering specialists. We have significant tenders in for increasing in the offshore industry and the new frontiers are benefiting from the decommissioning and we have had major enquiries for plant extensions and ongoing high level of investment in an area as mature as the North Sea. We have developments in areas such as gas storage and CO2 injection. projects in many parts of the world and what our customers tell us is that they want “The companies investing in new developments or adding substantial infrastructure people with North Sea training and experience. to get more from existing developments want our conceptual and front end When asked about PSN’s place in the future of the North Sea, Peter says: “A lot of engineering and design expertise. The companies engaged in late field life this business is about being in the right place at the right time – PSN works very operations are making the most of our operations, maintenance and advanced hard to make sure that we are right there. We have lots of long-term contracts integrity capability. that have been built on maintaining good relationships over many years and being “Our most recent award from BP is the largest single contract we have ever been flexible enough to change with our customers’ changing circumstances. We work in awarded in the UK. This win makes us BP’s federal engineering and construction all the North Sea’s markets: offshore in the northern, central and southern sectors contractor for all their UK offshore assets and marks a high point in our long and onshore at reception facilities and refineries, as well as in decommissioning and relationship with them.” the new opportunities for empty reservoirs. We’ve never had an empty vacancies book – there are always opportunities for the best people at PSN – and we have Decommissioning and new green developments the lowest employee turnover rate among our competitors. I would say we have a “Decommissioning is an increasingly important area,” says Peter. “A likely scenario is strong position in the future of this region, and what a fascinating future it’s going that there will be as much money spent on dismantling the North Sea infrastructure to be!” N and developing new uses for it, as there has been spent on building all the oil and Contact: gas production facilities currently in place. PSN has already been involved in two of the three most recent decommissioning projects in the North Sea: North West Peter Brown Hutton and Miller. We’re ahead of the game in designing environmentally sound and UK managing director cost-efficient dismantling processes but there is a lot more to decommissioning than E. firstname.lastname@example.org dismantling.” T. +44 (0)1224 777242 Flexibility is the key Robert Stevenson Business development manager “The future of the North Sea is all about flexibility, innovation and cost efficiency”, E. email@example.com says Robert “and these are areas in which we are constantly improving. T. +44 (0)1224 777945 “We strive for a balance between efficient standardisation and uniquely tailored solutions. Achieving this balance depends on our ability to have consistently good two-way communication with our customers at all levels of the organisation, which in turn builds the strong relationships that we value so highly.” 7 The Chiefs O ur chief engineers are at the heart of so much that we do. Working closely with HR, managers and lead engineers, they are tasked with managing the recruitment, training and development needs of the 1300 people in their global function. We caught up with some of the team to find out what life as a chief engineer at PSN was really like. Developing potential still do calculations, which I really enjoy, and in the afternoon my focus shifts to recruitment and management. I’m a huge advocate for training and development “The best part of my role is supporting and helping and like to give people a chance.” engineers meet their potential and growing the business through their capabilities”, explains John Hargreaves, Robert was recently awarded the prestigious Institution of Civil Engineers (ICE) chief process engineer. Joining PSN in 2003 as a lead Mentor of the Year Award for 2009 in recognition of his career long dedication to engineer, John is now responsible for managing and training and development. Since joining PSN in 2002, he has established a 3-year developing the process engineering discipline. He was ICE accredited training scheme that forms the bedrock of graduate development. In integral in the establishment of a training programme for addition to this, in 2005 Robert and two senior Sigma 3 colleagues wrote the ‘Sigma graduates that gained accreditation from the Institute of 3 Structural Training Manual’ for brownfield engineering, which has been used to John Hargreaves, chief Chemical Engineers in 2007 and is currently the chairman train over 50 engineers from companies supplying people to Sigma 3. In 2007, the process engineer of its Aberdeen branch. In five years his team has grown University of Aberdeen approached Robert to write material for an innovative Master exponentially and now includes over 150 engineers. of Science degree programme entitled ‘Structural Engineering for the Oil and Gas Industry’. Mobilising support from within PSN and from his wide range of contacts, “The chief’s position has both immediate and long-term challenges such as Robert and his co-author Alan Fraser, are writing four modules for the MSc, which personnel development, discipline standards and developing the network. With commenced in September 2008. more people in more places, the time we spend on training and mentoring has risen as we need to have well co-ordinated training Navigating the network programmes, discipline standards and competency Travelling and promoting PSN go hand in hand with the profiles. These are continuously being improved in order role, explains Mohammad Nabavian, chief engineer for to achieve the levels to which we aspire to.” the Advanced Integrity Group. “It’s important for us to Mentoring that matters meet our colleagues and their respective and potential customers to demonstrate PSN’s capabilities.” “The PSN structural team consists of over 180 engineers and designers and I’m heavily involved in international Under his remit Mohammad is the technical authority for recruitment of engineers and balancing resources across a number of offshore structures in the North-Sea and the business”, explains chief structural engineer, Robert South China Sea. He joined PSN 11 years ago, but has Mohammad Nabavian, Bell. “A typical day for me starts at 6.30am, catching up Robert Bell, chief over 25 years’ experience in the oil and gas industry. chief engineer for on emails, before I get on with some technical work. I structural engineer “New challenges can be technical based, resource-related advanced integrity 8 or contract issues. I get great satisfaction when delivering quality work, within the development of personnel. Rapid expansion over the last time and budget allocated to our customers either through the contracts that we two years has added new challenges such as adapting to directly manage in my group or to the network.” numerous cultures, personalities, languages, time zones, work methods and standards. Passing on my knowledge International recruitment and experience via the Design Academy gives me a real “My days are always unpredictable”, says Maggie Leitch, boost and my current focus is to deliver our training PSN’s chief safety and environmental engineer, who heads programme overseas to hopefully mirror the success up a team of 70 engineers worldwide. “I split my time we’ve achieved in Aberdeen.” between discussing courses of action and resourcing for Multi-tasking both UK and international. Recruiting fantastic people, Kevin Watson, chief developing them and endeavouring to get the best out piping designer It’s a common theme that the role of a chief is fast paced, of them, is the best part of the job. I’m also involved dynamic, with little time for monotony. Evidently, a in setting-up and agreeing training requirements for key challenge is covering the global time zone of their remits, as chief mechanical our associates and am the assigned mentor for a young engineer, Mike Stone explains. “A typical day starts early, finding out any issues Maggie Leitch, structural engineer. Our team has tripled in recent in the eastern part of the globe before they go off-line. Then, getting home after chief safety and years, so more of my time is spent managing people and Aberdeen’s rush hour allows me to logon and check what’s been going on in the environmental engineer business development than the hands on technical work.” western side of the planet. “Keeping all parts of the company involved in technical improvements can be a challenge. It’s not simply the time zone issue, but culture, markets and experience all play a part in defining the mechanical function and its effectiveness. For me, proof that the network really works, is seeing an engineer feel confident to pick up the phone to ask a stranger on the other side of the world for advice. “It‘s a combination of the development tasks, looking for Mike Stone, chief improvement opportunities, mentoring younger engineers mechanical engineer and evaluating new technology that really makes this job interesting. You never really switch off, there’s always questions to be working 2009 ECITB students over in your mind; thinking through opportunities and testing the ‘what if’ question”, explains Mike. Bridging the gap Richard, Munro, PSN’s most recently appointed chief electrical and instrumentation engineer tells a similar story. “From 6am to 6pm, I’m busy with meetings, Many of the chiefs are long standing employees, including interviews and conference calls to St. John’s, Atyrau, Baku, Melbourne or Sakhalin, Ron High, chief designer for control and electrical so managing your time is a key consideration. An aspect of my position I’m systems, who has worked with the company for 25 years. passionate about is mentoring young engineers and getting actively involved with “I’m responsible for the training and development of the the Scottish Council for Developing Industry (SCDI). electrical and instrumentation team, working to ensure we have the resources required for our international Richard joined PSN in 2007 and as chief electrical & projects.” Ron was a key founder of the PSN Design instrument engineer, manages our global electrical Academy which was launched in 2006 to address the and instrument discipline teams. He has over 30 years’ chronic shortage of skilled designers. Since then PSN experience in both the nuclear and electricity supply Ron High, chief has accepted 43 designers into the Academy. He works industries. designer control closely with the Engineering Construction Industry Training Board (ECITB) and Angus College. systems & electrical “Electrical engineering is a vital part of the overall strategy of our company”, says Richard. “I get immense Structured learning satisfaction leading a world class team of committed professionals that thrive on pushing the boundaries Describing himself as a one trick piping pony, Steve of innovation to provide cutting edge technology and Bage, chief piping engineer, has worked in his discipline Richard Munro, solutions for our clients.” N since leaving school 30 years ago. He has been in the chief electrical and role for seven years now, but interestingly was initially instrumentation reluctant to accept the offer, preferring the hands on side engineer of engineering. “It’s still the technical side of the role I enjoy, and being the technical authority of a multinational company certainly presents its challenges. The unpredictability of the challenges we are tasked with are paradoxically, the exciting and frustrating part of the role. Steve Bage, chief piping engineer “Making sure the right people, are in the right place, Leaders in their field takes up a large part of the day and I’m active in Each of the chief engineers report into John development and training. I get great satisfaction passing on some of the Kearney, PSN’s technical director, who gives us experience I’ve gained over the years to engineers in the the final word: Design Academy.” “The chief engineers are a key part of how we Chief designer for structural, Billy Morrice, also gets deliver exceptional results to our customers. involved with the Design Academy, an aspect of his job By developing close relationships with all our he enjoys the most. “I also work between the Advanced global teams they ensure we are identifying best Integrity Group, checking and supporting our various practices and implanting it into our standard projects and providing PDMS support for the structural ways of working. John Kearney, technical team. Every day comes with a new challenge - you may director “They provide the framework and support need to provide a designer at short notice or a design system to the project based engineers and solution for the Advanced Integrity Group, as well as Billy Morrice, chief designers around the world, to ensure they have a fully developed set of giving guidance to designers as they need it.” structural designer tools, processes and systems that enable them to carry out their work Dynamic teams efficiently and effectively. “It’s an exciting and challenging role”, says chief piping designer, Kevin Watson. “It is their energy and enthusiasm that ensures we are able to recruit and “Maintaining the balance between project and business is a key focus and we work retain the brightest and best.” closely with HR to adopt mutually beneficial solutions in recruitment, training and 9 What is the debate? Riding the Rapids A research study into surviving the recession Four ‘Riding the Rapids’ events in Aberdeen, Calgary, Houston and Abu Dhabi generated global media coverage worth over $800 000 USD and created over 77million opportunities to read stories proving PSN’s leaders, in the words of the Houston Business Journal “see beyond the horizon and are not caught up just getting through today.” Network investigated the buzz surrounding this snapshot of top-level industry opinion to discover why our research hit a nerve. 10 This raises the fundamental question as to why some companies are more resilient and optimistic in the face of similar environmental and economic challenges and whether fate, the skill of leaders or cultural attributes of an organisation, or indeed a mix of all three, influences a company’s ability to successfully ‘ride the rapids’. Professor Rita Marcella, Aberdeen Business School W hat are prosperous companies doing to survive and “Culture matters too. At PSN, our Core Values define who we are and what we do best. Our thrive during the current economic turmoil? PSN, with management team is experienced enough to know the dangers of taking success for granted - this McGrigors LLP, asked Aberdeen Business School to recession has been the biggest test of our market position, our customer relationships, but above all, investigate. CEOs and directors from major oil and gas companies how we react as a business taking tough decisions, in exceptional times. But our indefatigable culture in the UK, USA and Canada were interviewed. These leaders helps us ride the rapids with confidence.” represented a significant section of the oil and gas industry, In Houston, panellist Lane Sloan, president of Sloan Consulting Services, agreed: “companies with employing more than 740 000 people, in over 130 countries. a strong corporate culture feel more comfortable ‘riding the rapids’ – there is a sustainability factor.” Intriguingly, the research concluded that a strong corporate But, Sloan warns, in changing times, those with historically strong business models may struggle to culture may influence a company’s ability to sink or swim in the change. As Ernst & Young’s Jon McCarter, a fellow contributor to the Houston debate, reiterated, economic downturn. companies also need the ability to adapt quickly to changing market conditions to survive. “This was a short, sharp, swift piece of qualitative research to Canada’s industry leaders developed these themes at a debate chaired by PSN CEO Bob Keiller. gain a deep insight into the industry,” said Professor Rita Marcella "Outside the oil and gas sector, people continually say the world has changed,” explained panellist of Aberdeen Business School. “We explored a wide spectrum of Dr. Roger Gibbins, in The Calgary Herald (02.09.09), “but there's very little clear thought about what issues from the price of oil to the supply chain, from financial and the new normal might look like." This is an opportunity for PSN, asserts Bob: “executives spoke of operational strategies, to people management and communication. the volatility of the industry, but few had identified alternative business models to cope. We have The results were illuminating on many different levels, but one an opportunity to demonstrate that ‘the PSN way’ works as we share work geographically, using our discovery particularly surprised us. Leaders formed two distinct, network of talent, to manage the recession’s choppy waters.” groups. The next big question is whether the shared experiences of ‘riding the rapids’ in 2009 will change the “The ‘tough ones’ (51%) claimed they were immune or only way the industry works, for the better, in the future. "I'm not sure how sticky the lessons will be from moderately affected by the recession and relished tackling this particular recession," Calgary’s Dr Gibbins concluded. "Will this experience be transformative in recessionary challenges. This group demonstrated sound nature or will we just look back on it like other recessions?" N management practises, a product line in demand, operations across different and diverse sectors and intrinsically sturdy financials. In contrast, ’the vulnerable’ (49%) felt exposed and less in control of their own destiny, stating they had been seriously or very badly affected by the current recession. Most respondents spoke about the impact of the banking crisis, the oil price, the need for skilled labour and supportive government incentives. But these factors were especially poignant for ‘the vulnerable’, who were less able to ignore or avoid dangers. “All of the companies analysed are coping with the same Key findings: recessionary challenges and the same boom-bust dynamics of a cyclical industry,” explains Professor Marcella. “This raises the fundamental question of why some companies are more 51% of those surveyed are identified as ‘The Tough Ones’ – immune or moderately affected resilient and optimistic in the face of similar environmental and economic challenges and whether fate, the skill of leaders or cultural attributes of an organisation, or indeed a mix of all three, 49% are deemed ‘The Vulnerable’ – seriously or very badly affected influences a company’s ability to successfully ‘ride the rapids’.” This big question was debated at a series of four events, 89% have been affected by the banking meltdown – “the banks failed us, it was like finding your wife dead in bed” sponsored by Ernst & Young, in Aberdeen, Calgary, Houston and Abu Dhabi where oil industry leaders compared notes and learnt 78% have been hit by the volatile oil price how their peers were ‘riding the rapids’. “Our research offers a fascinating insight into what makes some 46% cited lack of government incentives or support as a factor companies thrive, while others struggle, tackling the same rough waters,” said Duncan Skinner, PSN chief financial officer, as he chaired industry debate in Aberdeen, then Abu Dhabi. “Luck 31% believe the worst of the recession is over plays a part in success: a new opportunity, a chance conversation or signing up to a prudent finance package months before unforeseen global market meltdown. But you also make your own 53% said green shoots of recovery was delusional as we are still firmly in grip of recession luck by picking a strong, loyal management team and nurturing a healthy respect for risk. 11 High-octane partnership Partner perspective: Suhail Mohamed Al Mazrouei, Deputy CEO and Senior Vice President of New Business Development of Mubadala Oil & Gas The eyes of the world saw history in the making on the 30th October when the inaugural Formula 1 Etihad Airways Abu Dhabi Grand Prix kicked into high gear. It took just two years, $400 million and 47 500 workers to build the circuit, resplendent with seven world-class hotels, championship golf course and Ferrari theme park, soon to be followed by a Warner Brothers theme park, private villas, a water theme park and a mega shopping mall. This is a city that dreams big – and delivers. Mubadala Development Company is one of the sponsors and owners of the Scuderia Ferrari team and PSN’s head of marketing and communications, Georgina Turner, recently had the chance to talk with Suhail Mohamed Al Mazrouei, Deputy CEO and Senior Vice President of New Business Development of Mubadala Oil & Gas, our joint venture partner in the United Arab Emirates. 12 project management. I was fortunate to work in an oil and gas industry. Through its range of services – intensive cross posting programme in The Hague from engineering, procurement, construction, Front with Shell where I covered all different areas of the End Engineering Design (FEED), project management, business: production, optimisation, total reliability and turnaround management, operations and maintenance, maintenance, business development and then came PSN Emirates can increase the reliability of equipment back to ADNOC as manager of production facilities and optimise facility uptime. Our services will enhance and engineering. Through the programme with Shell our customer’s operating efficiencies and the safety I was engaged in different international projects performance of both mature and new facilities. across different countries – Nigeria, Qatar, Brunei, the We are not only targeting Abu Dhabi: each market North Sea and the Netherlands, which gave me great has its own needs and we need to work with the exposure to the oil and gas industry. In ADNOC my operators to gradually build our relationship with them. team monitored and reviewed the larger capex projects A world-class company like PSN can only enhance the and I had responsibility for all the offshore companies, bidders list – I would say it is worth finding out what collectively producing more than 1 million barrels of oil we can do. We believe we add value and bring healthy per day. competition to the market. What distinguishes PSN GT: What did you see in PSN that made us the Emirates is our operations and maintenance capability. right partner for Mubadala’s vision? GT: Why should customers in this market SAM: MPSC evaluated various sectors in the arena change to outsourcing O&M? of petroleum services, then prioritised 10 sectors SAM: If you look at the North Sea and other mature for market entry and identified the requirements for markets, many of the international oil companies use each of those sectors. Production services, especially companies like PSN to optimise their operations and Suhail Mohamed Al Mazrouei, Deputy CEO and Senior Vice brownfield, was one of the ten priority sectors. We to create value when it comes to the reduction or President of New Business Development of Mubadala Oil examined various companies with an objective to deferment of planned maintenance. Here, the national & Gas complement the private sector in Abu Dhabi and bring operating companies are doing an excellent job, but we the best class companies to the region to add value to believe that there is room for improvement. Operating the operating companies. The selection of PSN was Georgina Turner: What is Mubadala Oil & Gas? companies here focus on maximising recovery – you done after careful consideration of their capabilities can only do this by efficiently running your operations Suhail Mohamed Al Mazrouei: Mubadala Oil & and track record in brownfield and operations and and trying to optimise production. I don’t think Gas was established as a separate business within maintenance that we felt the region needed and will operators will outsource the entire scope of operations Mubadala Development Company, to invest in the continue to need in the future. It does an excellent job and maintenance in one go and that isn’t what we are upstream oil and gas sector. We regard this area of of raising efficiency in the North Sea and elsewhere, targeting. There are elements within the production investment as an important step in building a globally and we thought such a partner would add value to arena that could benefit from improvements, for competitive enterprise. Abu Dhabi and the region. Our relationship with PSN example, debottlenecking of a compressor. What we was not random, it was a very carefully thought out Our vision is to become a leading exploration and are trying to do is work with the operators to design fit selection. production company in the region, ultimately benefiting for purpose operations and maintenance solutions that Abu Dhabi’s economy. We are currently participating in GT: How does the culture of Mubadala and PSN enhance their current capabilities, to work with them the development of several major projects, including align? Do core values play a part? as one team. N Dolphin Energy, enhanced oil recovery in Oman and SAM: Mubadala’s core values are tenacity, Bahrain, and exploration in Algeria, Libya, Kazakhstan collaboration, passion, innovation, integrity and and Oman. We are also continuing to grow Pearl profitability. We pay special attention to how the Energy, our exploration and production subsidiary in partners we select can align with these. There are Asia. some obvious core values in common between GT: What does your role involve? Mubadala and PSN, such as integrity, innovation and Reflecting on our meeting, I being profitable. For us, integrity is about health wonder if the Formula One SAM: My responsibilities cover all new business and safety, and it is also about the way in which we Grand Prix and PSN Emirates development in the upstream oil and gas for Mubadala conduct our business, making sure we do not disturb might have a few things in as well as assisting the CEO to build the Mubadala local markets by removing healthy competition. We common. They both see Oil & Gas Company. My team and I screen and find want to add value to the operators here, to co-operate the value of working in the right investment opportunity, select the right with them and to share our vision of Abu Dhabi, for the partnerships, both started development partner, negotiate and execute the deal future and the oil industry. A shared sense of passion out European but are now – anything from level one screening to sealing the about value and the power of industry is vital to a truly international, both deal. We then manage the handover to operations for successful partnership. have come to Abu Dhabi Georgina Turner, head start-up. for opportunities which only GT: Our partnership, PSN Emirates, has now of marketing and I represent Mubadala as chairman of PSN Emirates, settled into the region; what is it offering the communications for that country can offer and I am also a board member of the Abu Dhabi Ship regional market? PSN both have been welcomed Building Company, Abu Dhabi Systems Integration and in recognition that they have Sorouh Real Estate, and various Mubadala Oil and Gas SAM: As chairman I can say PSN Emirates provides many beneficial things to offer in return. Abu Dhabi is entities. world-class, value-driven operations and maintenance building a very strong, new kind of future for itself and contracting services to the upstream and downstream PSN is proud to be part of that future. For me there is no such thing as a typical day, which makes my job interesting. I recently conducted three simultaneous negotiations in three different countries – that is an appropriate challenge when you’re building a company on the scale of our vision for Mubadala Oil & Masdar City – the world’s first carbon- Gas. In an expanding organisation, selecting the right people is so critical and we make sure while growing we keep our core values and culture by obtaining a mix neutral, zero waste city of professionals from the best class of companies. The aim of Masdar City is to become the Silicone Valley for clean, green, alternative energy - a global centre where over 1500 companies will converge to address one of man’s greatest challenges. Masdar, GT: How did you arrive in this position? a wholly owned subsidiary of Mubadala Development Company, has a mandate to champion renewable SAM: I received my degree in Petroleum Engineering technologies and to contribute to the diversification and sustainable growth of the Abu Dhabi economy so in the US and began my career as a reservoir engineer. that it is industry-led and knowledge-based. This is a big vision with many components. It includes exploring I worked within ADCO (Abu Dhabi Company for alternative sources of energy and gradually diversifying away from oil and gas. PSN Emirates is contributing Onshore Oil Operations) and ADNOC (Abu Dhabi knowledge from its global network. Our expertise of greatest relevance to Masdar is our use of operations National Oil Company) for 11 years, moving from and maintenance input at the conceptual and design stages of projects, which enables optimum efficiency reservoir engineering to facilities engineering and and greatly increases the working life of all kinds of plant. Our pioneering designs on CO2 re-injection and our environmental studies are also ideally suited to this exciting new venture. 13 I am delighted that PSN has been awarded the Offshore Engineering and Construction Contract. They have demonstrated their determination to succeed and I very much look forward to a long and productive partnership. The North Sea is a big part of BP's global business and our goal is to sustain investment over the next decade. Over the coming months, we will announce a series of contract awards. These are more than traditional contract renewals - they are designed to fundamentally transform the way we work together with our suppliers to drive improved safety and efficiency in the basin. Bernard Looney, managing director, BP North Sea Success of this magnitude can only be achieved when the whole organisation works as a team and gets behind those delivering the service. Peter Brown, PSN UK managing director Peter Brown, PSN UK managing director Record contract win with BP Last month, we were delighted to announce the award of a prestigious five year contract for BP, worth in excess of £200million. Under the terms of the contract we will deliver engineering and construction support services for all of BP’s UK offshore assets and the onshore Dimlington plant. Here, Peter Brown, PSN’s UK managing director explains the significance of this mammoth project. I ’m very proud and pleased to work together. It will not be business Success of this magnitude can only be We are delighted that our track record announce the award of this major as usual – far from it. This contract achieved when the whole organisation of consistently delivering HSE excellence contract with BP. This contract will be a role model for the industry works as a team and gets behind and quality services has resulted in the award is a step change for PSN. At in this century. We will improve safety those delivering the service. The award of this prestigious contract. around £200million over five years, it and efficiency and drive out waste in current operations team, working on We look forward to welcoming new is the largest single contract we have everything we do. We will challenge our engineering, maintenance and talent to our network and will ensure been awarded in the UK to date. As established practices and norms to modifications contact, and on our Miller the transition is as streamlined and BP’s single federal engineering and make assets with declining reserves contract, has continued to deliver and transparent as possible. It is a great construction contractor for their UK more cost effective and give them and improve, which has laid the foundation vote of confidence in the hard work and offshore assets it marks a high point in our employees a future for decades to for this stunning win. The pursuit team commitment of the PSN team that our our very long relationship with BP. This come. Winning this contract means we also worked really hard to win this relationship with BP, which dates back is simply an amazing success for us. will be able to look back and say PSN prize. Together the whole of PSN will to the 1970s, has been extended to began the process for extending the life continue to support the teams as they This will also be a step change for 2014 and beyond. N of North Sea oil. strive for excellence over the coming BP and the PSN team in the way we years. 14 The last few months have been very interesting with lots of challenges and many opportunities for PSN. With the triple-whammy of world recession, the credit crunch and plummeting oil and gas prices it looked like 2009 could be one of the most challenging we have had in our 33 year history. Major projects around the world, in all industry sectors, have been cancelled or deferred and everyone has been focussed on reducing costs – all of this puts huge pressure on contractors and suppliers and we have not been immune from this. O ur focus has been on becoming the are supposed to and for the price we have agreed – safely. All of this helps to best in our business, as judged by our strengthen our customer relationships. customers. Did the pressures in 2009 The pressures on our industry have also led to many new opportunities and we mean we had to change our strategy and focus have invested in new business development managers in Russia, Abu Dhabi, North on becoming the cheapest? In short – no. Africa and Australia. The net effect of this is we probably have more contract Our business is about helping our customers get opportunities now than we did last year. But we can only expect to retain business more out of their existing assets – improving from existing customers, or win business from new customers if we focus on value reliability, shortening planned shutdowns, for money – quality delivery. expanding capacities and tying-in new wells. Our management system – built on the foundation of our Core Values is vital – it These activities become even more important ensures that we deliver what we commit to and provides the basis for giving our when people are depending on money from the customers the quality they demand and deserve. sales of their product to finance their business Bob Keiller, CEO activities (when credit or investment money PSN has grown up since our launch as an independent company in 2006 and we is more difficult to come by). We are less are facing up to the challenges of 2009 head-on. This has meant many tough dependent on big projects than other companies decisions and concentrating even more on our own operating cost base. But this so cancellations and deferrals hit others more severely than us. But the impact gives us a strong financial base from where we can continue to grow and develop varies from place to place and we have probably had greater challenges in Western the company. Despite some disappointing contract losses in 2009 we have had Canada than anywhere else. some huge re-awards and new wins which is down to the efforts of our teams in all disciplines and in all areas. Now despite our focus, and perhaps conversely, our diversification has also helped us. By having a broad customer base across several countries where we provide I admit that I was nervous about 2009 and the challenges we faced – we still a wide-range of services we are able to adapt quickly to meet changing customer face many but we have shown that we have the drive and the focus, the ability to needs. concentrate on the important things despite the storm around us and the tenacity to trust in our Core Values. This gives me optimism for 2010 and beyond. N But there’s more to it than that – it’s not just about being in the right market with a good range of services – the focus on quality is stronger than ever. We need to deliver projects that deliver what they are supposed to in the timescales they Surviving the squeeze CEO update 15 International exchange With 8000 people in our growing network, most of us have at least one counterpart in another PSN location. Ever found yourself wondering what it would be like working in sunny Melbourne, or getting to grips with the many different operators in the oil and gas capital of Europe? Electrical engineers, Caroline Bett and Joanne Gashumba did more than just wonder. After proactively seeking out an overseas exchange, they packed their cases and swapped roles to find out what life on the other side of the world as an electrical engineer was really like. Read on to hear their story. Joanne Gashumba, electrical engineer Caroline Bett, electrical engineer B eing born in Kenya to Rwandan parents, many different oil and gas operators and this was a plants killed two birds with one stone. Joanne living in England and then Australia, Joanne real attraction for me. I wanted to develop my career assumed my position and began work on several Gashumba already had a taste for travelling and by gaining exposure to a different market, different offshore pieces of work in the North Sea.” understanding different cultures. In her current role customers and a wider network of engineers.” “Working in Melbourne I’d been focused on one Joanne is an electrical engineer on Esso’s onshore After discovering Caroline Bett, an electrical engineer customer’s onshore plants and another customer’s retrofit contract. A stint working in Aberdeen, the oil based in Aberdeen, was looking for a similar Russian offshore platform”, explains Joanne. “My and gas capital of Europe was yet another experience secondment, the pair’s lead engineers put the cogs in move to Aberdeen gave me the chance to work with that Joanne was keen to get under her belt. motion and arranged for the six month secondment to multiple customers including key global heavyweights “Four years ago, I joined PSN because of the emphasis become a reality. such as Chevron, ConocoPhillips and CNR. I also they place on developing young engineers and support learnt about the history of the North Sea and used the The exchange to gain chartered status. Since then, the company has British offshore technical standards for the first time.” often exceeded my expectations, so when I applied for “I took over Joanne’s role”, explains Caroline, “and As part of Caroline’s secondment, she was responsible an overseas exchange, I was confident that I’d get the was seconded to the Esso onshore contract which for the electrical scopes of four key projects – one green light. looks after several onshore plants. I’d only worked of which her team received a commendation for on offshore plants in the North Sea so gaining “Working in Aberdeen would give me exposure to completing within budget and ahead of schedule. international experience while working on onshore 16 I would encourage other graduates to pursue an international assignment. It was a really enriching experience. You gain a much better appreciation of the business as a whole on an overseas assignment and your network definitely improves. Joanne Gashumba, electrical engineer working in challenging technical environments and improves. I now feel confident that I can approach application of different standards, and PSN gets any of the electrical engineers that I met in Aberdeen diversely skilled employees who can be deployed to discuss technical issues in the future. through the network if a location needs to deliver a “After finishing the graduate programme earlier this service fast. year, I was unsure in which direction to go. This “The end result for the customer is an engineer secondment has opened my eyes to the reams of that knows new methods and techniques for solving opportunities in PSN and I’m looking forward to challenging problems which may be common place developing my career further as the company grows.” N in one region but relatively unheard of in another”, explains Joanne. “Having diversely skilled employees allows PSN to share work between office locations – a key benefit if you have limited resources. Caroline and Joanne discuss their exchange “What better way to develop core technical depth in young professionals than by sending them to different Cultural differences challenging environments to bring back best practices”, adds Caroline. “Of course, there are differences in the two office locations”, adds Caroline. “Being the sports capital of What’s next? Australia and located in the centre of the city, there Now back in their home office, both Caroline and is always a lot happening in the Melbourne office. Joanne are currently working towards their chartered Aberdeen is very industrial by comparison.” status and keen to move around the network in the Joanne found the mix of graduates in Aberdeen, future. different from back home. “There are graduates from “Australia was my first international experience but all over the world, including the UK, the Philippines hopefully not the last”, says Caroline. “I’d be quite and Canada. In Melbourne most of our graduates are keen to get further experience in Canada in the from local universities.” oil sands and the Middle East. Similarly, Joanne is Everyone’s a winner interested in working in some of our newer locations such as Russia and North Africa. “International exchanges such as this embrace the cultural diversity of our multinational company and “I would encourage other graduates to pursue an have clear benefits for the graduates, PSN and our international assignment”, says Joanne. “It was a customers”, says Caroline. really enriching experience. You gain a much better appreciation of the business as a whole on an “The graduate gains exposure to different ways of overseas assignment and your network definitely Caroline on site in Australia International exchanges such as this embrace the cultural diversity of our multinational company and have clear benefits for the graduates, PSN and our customers. Caroline Bett, electrical engineer 17 Rong Doi from the helideck of the MV12 FSO. Photo by Ken Doerr Building competence in Vietnam Article by John Popovic, Vietnam operations manager C ompetency Based Training and Assessment (CBTA) programmes are the The development of the CBTA programme for Rong Doi was a long process. backbone of nationalisation efforts in countries where the required skills We were concerned that the roll out be undertaken when all the elements are not always available. Vietnam’s oil and gas industry is developing at were proven and when the facilitators were trained and qualified. Adopting this a pace that is faster than qualified people can be found to staff the many new approach has created a positive vision for the national workforce who can see facilities being installed each year. their skills being valued and emphasis on quality. As part of our contract with the Korea National Oil Corporation (KNOC), the The impact of CBTA progress for the crew has been terrific. One of the lead Rong Doi platform team has been working hard on CBTA since the start of the mechanical technicians, Mr NQ Thinh, said: “CBTA sets the standard for project in 2005. With collaboration from our global training team, PSN offshore knowledge and behaviour at work. It opened my eyes to the shortcomings supervisors, expatriate specialists, and Vietnamese national training and of some of our practices. I am confident the process is helping us align with competency co-ordinator, Mr Le Duc Ha, a CBTA process was built and deployed, the PSN Core Values”. OIM Ken Doerr agreed – “Coupled with our training the fruits of which are now being realised. programme, the CBTA has enriched the capabilities of our Vietnamese staff and produced a process embraced by all.” 2010 will be a busy year at Rong Doi, with major drilling works and complex brownfield modifications planned. We are confident that our CBTA programme will integrate and flourish in just such a challenging environment. N For more information contact: John Popovic Vietnam operations manager E. firstname.lastname@example.org T. +84 8 38257 808 ext 314 Left to Right: OIM Ken Doerr, Lead E/I Tech T. D.T. Phu, and training and competency co-ordinator L. D. Ha. The entire crew is now sitting at 94% complete for all HSE modules, the prerequisite for progressing onto technical competency assessment. We have Coupled with our training achieved 70% progress this year, at the same time as coping with a higher than normal workload caused by an intensive well intervention work programme programme, the CBTA has and major planned shutdowns including our first vessel entries and a flare tip enriched the capabilities of our changeout. By the end of 2009, we will be well into the next phase of the CBTA, which Vietnamese staff and produced a is the technical modules. The foundations for the nationalisation plan are process embraced by all. strengthening and our own in-house trade training and assessment facility is underway at our base onshore. Ken Doerr, OIM One of the challenges posed by rapid take up of the competency programme has been the demands placed on the assessors themselves. Assessments take time, and the mood and location for the assessment needs to be appropriate. The Rong Doi team has overcome issues here by using offshore and onshore resources for assessment and making the assessments a priority in daily activities. 18 STOP PRESS: As we go to press we have just received news that as a result of our A mammoth excellent safety and work performance during the first six months of this contract, we have been awarded responsibility for offsite feat of electrical and mechanical equipment preservation and utilities area preservation, bringing our total workforce on this project to over 150 people. maintenance Project facts Co ard A w re W Va in Customer: Agip KCO lu ner e Field: Kashagan Location: North Caspian coast, Kazakhstan Scope: Equipment preservation on one of the world’s largest construction sites First oil expected: 2014 At over 5 square kilometres and growing, it is one of the largest construction sites in the world. It is the base for building facilities to operate the largest field found in the last 25 years. It is where PSN KazStroy is showing we have the expertise to match the job – whatever the scale. I n the beginning we had a request to build some 2500 electrical motors a month as well as checking, conditions are hostile in summer and winter, and as offices, 1000sq meters of workshops and 8000sq servicing and certifying a vast quantity of control you can imagine, there are hundreds of different meters of warehousing, within just over 12 weeks, valves, and checking and filling with nitrogen around companies working here, all with different procedures, in the middle of a Kazakhstan winter. PSN KazStroy’s 500 air coolers.” approaches and speaking different languages. As part managing director Dave McBain, takes up the story: of our commitment to safety, since the beginning of With such a diversity of equipment required for such “The worksite, at Karabatan, on the north coast of the the contract we have organised training in First Aid, a complex task, the job doesn’t end there – Dave Caspian, had temperatures plummeting below -35˚C Permit To Work, working at height and confined space explains: “Of course all the instrumentation to control and weather conditions that meant our construction entry. We are currently embarking on an extensive gas each item of equipment also requires experienced team had to be demobilised several times. However, awareness training programme and we also have a people to ensure that it keeps running and to follow with a display of commitment and professionalism strong focus on communication.” the myriad of procedures from all the vendors that that won them the 2009 PSN Core Value Award for have supplied equipment to the site.” Dave concludes: “It is a huge job but our people Localisation, our team completed the job on time, are carrying it out with an enormous amount of without incident and within budget. But that was just It should never go without saying that safety is PSN’s professionalism, matched only by their enthusiasm.” N the start.” first priority and Dave says his team has organised comprehensive and ongoing safety training: “We face For more information contact: Our team’s impressive work on the office, workshop a number of unique challenges on this project. We and warehouse project played a large part in PSN Dave McBain are not only maintaining equipment in a workshop KazStroy winning the equipment preservation contract PSN KazStroy managing director where we’ll be working from ground level to the top for the site in July 2009. Dave continues: “This new E: email@example.com of the cable trays and in all the spaces in between, contract sees over 70 of our mechanical and electrical T: +7 7122 909002 but there are many pieces of equipment that have maintenance experts using the full spectrum of been installed over the last three years and that discipline expertise and taking responsibility for making means our people will be working in the middle of sure that all the equipment at this vast site works and one of the world’s biggest construction sites. Weather keeps working. Our people are testing and turning 19 Making Trevor Proud Guideword Meaning NO OR NOT Complete negation of the design intent MORE Quantitative increase LESS Quantitative decrease AS WELL AS Qualitative modification/increase PART OF Qualitative modification/decrease letz OBE Trevor K REVERSE Logical opposite of the design intent OTHER THAN Complete substitution EARLY Relative to the clock time LATE Relative to the clock time BEFORE Relating to order or sequence AFTER Relating to order or sequence When the great British octogenarian and author, Trevor Kletz OBE, invented the HAZOP technique on behalf of ICI back in the 1970s, he might not have appreciated the degree of uptake there would be of his idea by industries around the world. An introduction to HAZOPs HAZOPs in PSN We draw on our network of relationships with leading H independent industry experts when we feel that we AZOPs, short for Hazard and Operability Many of PSNs contracts are integrated service can provide the best HAZOP by including external Studies, are the most widely used form of contracts (ISCs) with major operators. Within these expertise. We have an intensive and rigorous selection hazard analysis in the process industries. They ISCs our engineers routinely work on the design and process before bringing HAZOP facilitators into our are normally carried out by a multi-discipline team of implementation of minor brownfield modifications business and we monitor their performance and work people and the team make-up can vary depending on through to major capital expenditure projects and on alongside them, sometimes sitting in on customers’ scope and any customer requirements but typically many contracts such projects run in parallel. Whether HAZOPs at our own expense, to ensure consistently includes; a study leader or chair, which is someone the job is large or small, if it involves the development high levels of quality. experienced in HAZOP but not directly involved in the of new process and instrumentation diagrams or design; a person to document the problems identified making changes to existing ones, a HAZOP is required HAZOPs as a vehicle for our values by the study and make sure that recommendations to test the robustness of the design. PSN’s most prominent core values are safety and are passed on; a representative of the team that With numerous contracts at any one time and a people. Each employee signs a commitment stating designed the process being studied; a representative multitude of jobs running simultaneously on each that there is no room for compromise on matters of of the potential user group of the design that is being project, PSN’s HAZOP requirement is high. In our health and safety and that to watch an unsafe act studied; a person with specialist technical knowledge Aberdeen headquarters alone we can have several and do nothing is unacceptable. Every aspect of our and a person with specialist maintenance knowledge. HAZOPs running in any given week and scores are business, our behaviours and consequently our culture The HAZOP team scrutinises engineering design completed each year. The need for quantity has never are defined by these values. When the work that we information – often a process and instrumentation been allowed to degrade the need for quality and we produce goes out into plants and facilities around the diagram – in a structured and systematic fashion to set very high standards for who participates in our world, the HAZOP process is a key vehicle in ensuring identify potential deviations from the original design HAZOPs and how the process is conducted. that our designs are safe and mindful of the people intent. Potential deviations are a concern as they could who operate and maintain the finished product. The best HAZOP people ultimately lead to hazards or operability problems. Our core values mean that PSN people are already Our HAZOP chairs are degree-qualified engineers To assist the team in identifying potential deviations, aligned with the HAZOP ethos while our experience with a minimum of 10 years’ experience in the oil and a set of guidewords is applied to each part of the of HAZOPs and working with only the best HAZOP gas industry, preferably a post-graduate or doctoral process being studied. The guidewords vary from participants mean that we offer a very cost-effective qualification in a relevant subject and they must customer to customer but those occurring most often service for our customers. We like to think Trevor Kletz also have completed an accredited and respected are shown in the table. would be proud. N HAZOP-chairing course, such as that provided by the During the HAZOP, causes and consequences of Institution of Chemical Engineers. For more information contact: design deviation are recorded, together with existing When recruiting for new additions to the safety Margaret Leitch safeguards and actions that should be taken to engineering discipline team, we set high expectations Chief safety engineer improve the process safety of the design. for candidates’ abilities to perform HAZOPs and deliver E. firstname.lastname@example.org outstanding input in all roles within the HAZOP team. T. +44 (0)1224 777057 20 Shutdown.09 A shutdown is one of the most important events in our customers’ calendars and managing planned shutdowns – sometimes also called turnarounds – of offshore installations and onshore plants is one of PSN’s core skills. In 2009 we broke all our own records for the number of shutdown personnel mobilised and number of customer commendations received. From our CNR project team, assignment manager Stuart Creaney and construction manager Jim Devine give us the view from the North Sea. S tuart: “PSN manages dozens of staff in safety training but with PSN it is now shutdowns around the world – last common practice. We’ve also increased our use year the number was 67; by the end of independent risk assessors, which gives our of this year we will exceed that and they customers added peace of mind and boosts range from gas plants on the Arctic Circle the development of our shutdown personnel. to production platforms in the Gulf of Some of our USA-based projects use a process Suez. However, the crucible for developing safety management group, which specialises in our shutdown expertise is the North Sea. management of change, hazard analysis and Insights from many years of working on the regulatory compliance. Another important factor, platform systems off the east coast of the for safe offshore shutdowns, is doing as much UK have built the backbone of our shutdown work as possible onshore.” management system. This sets minimum Jim: “We’ve led a very positive evolution in safer standards and procedures that our worksites working practices during shutdowns. The annual around the world can then build on to suit local shutdown for one of our major North Sea customers need and feedback to, with innovations that they takes in 38 manned and unmanned platforms and a gas develop and the lessons they learn.” terminal; that was where, several years ago, we employed Jim: “A couple of years ago we mobilised 950 shutdown our first dedicated shutdown manager. That manager, in people in the North Sea; this year we nearly doubled that, turn, pioneered five-year shutdown strategies for each facility with 1800 people involved in sometimes very complex scopes, and group of facilities, using PSN’s 4D challenge to optimise scope under huge pressure to meet client schedules and keep everyone safe. by analysing each activity to see whether it could be deleted, deferred, Results like that are built on a whole network of support. For example, PSN’s UK diminished or done differently. At the end of the shutdown season we now hold an human resources team and construction managers first got together to start work annual shutdown management lessons learned workshop to learn what went well on a UK offshore resourcing strategy in 2006. In the first year that the resourcing and where we can further improve. This is driving increased expertise in areas such strategy was implemented we filled over 70% of positions with people who had as reducing use of consumables and increasing energy efficiency.” previous experience of working for us and were familiar with our systems and Stuart: “On a single day during the shutdown season this year in the North Sea, culture. Innovations in recruitment and people development have been added every PSN people were performing major surgery on process plant and piping, conducting year from around our projects, for example, the HR team makes shutdown-specific vessel entries, making a major upgrade on software systems, decanting hundreds of offshore visits so that our workers know who they are and can raise any matter they tons of chemicals and loading new chemicals onto the facility, all without any spills want to talk over. Here on CNRI and on other projects, we organise secondments of or environmental incidents. On another project our people were doing interface onshore personnel to assist offshore efforts during shutdowns. On the BP projects work between a platform and a drilling rig and on another, one of our riggers we use personnel trackers that include the names, competencies and mobilisation received a commendation for identifying a failure in a piece of third party lifting date of all our shutdown people and share these trackers with the customer three equipment during pre-use checks. We’ve completed several shutdowns ahead of weeks prior to shutdown start, which has greatly improved communication with schedule and in the one or two instances where we have gone over schedule – workers.” for example there was a delay caused by the late arrival of an accommodation Stuart: “With so many people involved, often working around the additional barge – we have procedures for getting to the root of the problem so that a materials and equipment needed for repairs, maintenance and modifications, repeat occurrence can be avoided in future. We can’t control the weather but the safety is of the utmost importance. In the Philippines, we mobilise a few hundred unforgiving climate of the North Sea has taught us many lessons on what we can do additional people each year to work on shutdowns at a refinery; the turnover to mitigate weather-based delays.” among Filipino workers is high because they are in such demand but our team Stuart concludes: “With shutdowns as with everything else, it is important to there has celebrated over 13 years of work without a lost time safety incident avoid complacency. However, if anything, our shutdown performance is a great because of our strong safety culture. Here on the CNRI platforms we’ve mobilised example of where we have often thought that we must be at the top of our game over 150 people this year and had only one minor first aid case. Our strong safety but we have continued to find ways to improve and raise the bar for everyone. This record is partly due to the excellent work of our HSE teams and partly due to PSN’s year’s successes mean that our shutdown teams around the world have many more constant focus on safety, which creates the necessary culture for a safe working good examples to learn from and our expectations will be higher for next year.” N environment and has also inspired technical approaches and innovations that have led to safer working practices. For example, it used to be unusual to include vendor 21 We certainly believe this contract differentiates PSN. Having a small in-country team mobilised to deal with daily customer needs, with required support from our central engineering team, means we can respond in the most cost effective and efficient way to our customers’ requirements. This flexibility in approach allows us to deliver a world class service at the right price. James Crawford, Sub-Sahara Africa regional manager Ranked as one of Africa’s top ten oil producing countries with nearly 250 000 barrels of oil produced daily, Gabon is a country not to be underestimated. In March this year, we scooped our first key contract in the country – a significant three-year abon engineering design contract with Shell Gabon. Here, Network gets the low down from James Crawford, PSN’s regional manager for sub-Saharan Africa, on the Gabon story, so far: the story so far “S eeing monkeys, snakes and the project”, explains James. “Support the year incident and injury free, meet did not, to make sure that the overall elephants roaming wild from the accounting team, planning, our customer’s expectations for delivery process is reinforced where necessary. outside your work, certainly and central engineering makes sure we of engineering excellence, and position The lessons learned will hold us in good keeps our new team in Gabon on its can deliver a first class service.” PSN for key projects that our customer stead for our next new venture.” toes and the option to spend your will be executing in the coming years. “Before entering Gabon we had to The future is exciting and the team day off playing golf, rugby or football identify the legal requirements to “Being in Gabon and establishing a is currently exploring opportunities means working in Gabon is anything but successfully register and operate in that business entity that quickly delivers for growth with our customers as we boring!”, jokes James. country. This included local legislation, services demonstrates a flexibility and move into years two and three of the “Gabon is a fantastically interesting tax requirements and investment rules. drive to grow our business, which contract. place to work. Libreville, the capital To achieve this, we engaged with in turn impresses other potential “We are working hard at creating a is a vibrant city, while Gamba where local advisors who could provide the customers for us in new markets”, says sustainable business and I’m confident we are based is much more laid back necessary guidance. James. that with the resources and support and relaxed. Dense forest covers most “Start up in a new country is far “We certainly believe this contract available within the network we will of the country while the coastline is more complex than a new contract differentiates PSN. Having a small be able to deliver on this. The market beautiful. The people are unbelievably alone. Not only are you starting a new in-country team mobilised to deal with potential here is substantial and I see friendly and have been nothing but contract but you also have to create daily customer needs with required the region playing a major part in the welcoming to us.” a legal entity to assign part of the support from our central engineering long term PSN success story”, concludes Our new contract is located in south works too. This slowed down some team means we can respond in the James. N Gabon, supporting Shell’s operations of the processes we would normally most cost effective and efficient way For more information contact: in Gamba, Rabi and Toucan fields. run through as there were additional to our customers’ requirements. This We now have six people in country, hurdles that needed to be cleared.” flexibility in approach allows us to James Crawford supported by Aberdeen’s central deliver a world class service at the right Sub-Saharan Africa regional manager All the required aspects of business engineering design unit. price. E: email@example.com registration have now been completed T: +44 (0)1224 777445 “The use of functional support based in and the team’s top three objectives in “We now have the benefit of being able Aberdeen is integral to the success of 2009 for the contract are to: complete to look at what went well, and what 22 Living values 1 2 1. Flood relief mission in Philippines PSN employees provide support in the wake of Ketsana, a tropical storm which devastated the local area of Luzon, forcing over 500,000 to leave their homes for shelter. 2-3. New orphanage in India officially opened Scottish Government’s External Affairs Minister, Michael Russell, celebrates the official opening of the PSN dormitory, at The Ujwal Niketan orphanage. 3 4 4. PSN equestrian centre – Waypoints Hugo McCarthy, Waypoints, manager of Employment and Outreach Services, and his children visit the PSN equestrian centre near St. John’s, NL on Canada’s east coast. The centre is the site of an equine therapy programme for disadvantaged youth at Waypoints, which PSN is a partner with. 5. PSN gives WildHearts a hand up Bob Keiller joined Mick Jackson, founder of WildHearts, at a recent motivational evening to increase awareness for this dynamic Scottish charity. WildHearts use microfinance to give people in the developing world the chance to work their own way out of poverty. On 6th December, 50 PSN employees took to the streets of 5 6 Aberdeen dressed as Santa, to run 6km to raise money for WildHearts. 6-8. New beginnings in Bangladesh as multi-purpose shelter nears completion 9-10. Local children benefit from the non-formal education We have now raised a staggering $204,000 for our Bangladesh Appeal thanks to the exceptional effort of so many of the teams and suppliers in our network. Our target of $230,000 is now clearly in sight, and with your help we hope to not just reach our goal, but smash it. These funds will truly help make a substantial and sustainable difference to the local community in Chittagong, where we operate. 7 8 The multi-purpose shelter will be complete by the end of the year, marking a new chapter for the local community in 2010. www.psnworld.com/bangladeshappeal For more information on PSN community relations activities, to share a story, or find out how to request funds for a community project, contact: Kenna Blackhall Communications officer T: +44 (0)1224 777014 E: firstname.lastname@example.org 9 10 23 Core Values Our core values are the guiding principles under which we operate. Faced with difficult decisions, we choose options that best meet our core values. Health & Safety The health and safety of our people is our greatest responsibility. This makes it our top priority with no room for compromise. Safety is at the heart of everything we do: the way we plan, the way we prepare, and the way we work. This goes beyond simply following rules and regulations. Our passion for safety extends to everyone who may be affected by our activities. We are proud of our reputation for health and safety yet we are never complacent and look for ways to improve. Learning from others is as important as sharing our own lessons with our peers. We expect every one of our people to be a leader in health and safety. It is everyone’s responsibility to assess, look for, intervene and stop any unsafe or potentially unsafe activity. Anyone who steps in to prevent a potential accident will be fully supported by the Company. To watch an unsafe act and do nothing is unacceptable. People Our people are our business - we treat each other with honesty, compassion and respect. Our people are our main business asset and their skills make us better than our competitors. We treat people fairly and reward them competitively - this goes a long way to attracting the best people and retaining the excellent people we already have. We value an open culture where people are prepared to give and receive constructive feedback. We encourage people to contribute ideas that improve the business - we want everyone to be part of the team. We want to be thought of as professional, the best at what we do and focussed on delivery. Everyone in our organisation is part of a worldwide network of skills, talent and experience, and is encouraged to use that network. Localisation We nurture local businesses and skills to encourage sustainable community development. Through our network of expertise and experience, we bring value to the communities where we work. We draw on lessons learned and best practices from all over the world. We recruit and train local people who enrich our global network by bringing their experience, culture and diversity into our business. We are committed to achieving high local content wherever we operate. We justify this investment with the ongoing successes that can be seen in our people, projects, and the communities where we work. We work with our customers, contractors, partners and suppliers to improve the efficiency of our operations by conserving resources, reducing waste and emissions, and preventing environmental pollution. Innovation We actively look for better ways of doing things, never satisfied with “good enough”. Our culture encourages people to collaborate, share ideas across our network and learn from each other. We recognise that not all innovations succeed but we test ideas quickly and learn early without taking large risks. Our people are at the core of innovation. Applying ideas that improve tools, processes, and systems only work because our people have the skills and attitudes that embrace innovation and keep it moving forward. Relationships Strong relationships with our customers are vital to our business. We nurture these relationships to understand what our customers want and how we can best deliver it. We expect everyone to contribute in building positive customer relationships. We welcome candid feedback from our clients - good and bad – because it helps us to improve and stay focussed on what customers need. We recognise that a customer’s perception is their reality, so we must take the time and have empathy to understand an issue from their viewpoint. While it is good to be “liked” - it is more important that we are respected for our focus on safety, professionalism, and our integrity. Financial Responsibility We expect to receive fair reward for our business performance. Consequently, we expect to be paid on time just as we expect to pay our suppliers and sub-contractors on time. We carefully manage financial risk and demand clear reporting of financial performance in our business. Our business strategy is based on steady growth by selecting only those jobs we can deliver safely and make a profit. Integrity We act openly and with honesty - our code of ethics sets the minimum standard for our behaviour. People have different moral and ethical values - we respect this and set our own minimum standards which all our employees must follow. We will ensure that all of our operational activities comply with applicable local rules, regulations and other requirements. We will investigate any ethical violations or complaints and take appropriate action. Our long-term reputation depends on doing the right thing within these core values - even if it adversely affects our business prospects in the short-term.
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