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- 1. Gorgon Project Issue 29,July 2012 Gorgon Project Update Feature Articles World Environment Day Award for Gorgon Page 2 Hands-on Experience for Apprentices Page 3 Construction Humming as Logistics Ramp Up Page 4 Project Creates Opportunities for Business Across Australia Page 6 Strengthening Pilbara Networks Page 8 First Pre-Assembled Racks in Place The first shipment of pipe racks, comprising four modules, was offloaded at the island’s new Materials Offloading Facility (MOF) in June where they underwent a thorough inspection by the Project’s quarantine team. Gorgon Development Director Scott Young said the team was focused on the safe execution of the offloading operation. “This is the start of a major phase of the construction effort on Barrow Island so it is critical that the modules The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent). The first shipment of the pre-assembled racks (PARs) arrived on Barrow Island in June, with two modules already in position on site. are safely transferred to site in preparation for final installation,” Mr Young said. “In total, 53 module shipments are due to arrive at site to eventually form Gorgon’s gas processing facility.” The largest item in the first shipment was about 65 metres long and weighed 1,400 tonnes, and will later be followed by modules exceeding 6,000 tonnes. Once offloaded, the PARs are being moved to site by self-propelled module transporters. They will take their place in the east-west corridor area of the gas processing plant site. “Over coming months, the Barrow Island landscape will be transformed as more PAR and Train 1 modules arrive and are placed on their foundations,” Mr Young said. In a sign of major ramp up of plant construction activity on the Gorgon Project, the first two pre-assembled rack (PAR) modules are now in place on Barrow Island.
- 2. Workforce Stands Togetherfor Safety The Barrow Island workforce recently came together to demonstrate their commitment to safety while reflecting on the story of one woman’s personal journey. As part of the Stand Together for Safety weekend in May, Helen Fitzroy, who lost her husband in a mining incident in Western Australia, reminded those working on Barrow Island of the importance of coming home safely every day. “The effect of losing a loved one lasts a lifetime. You can’t even begin to imagine how different the lives of your family, friend and workmates will be,” Ms Fitzroy said. “We all know that significant incidents don’t just happen. There are plenty of Helen Fitzroy speaking to the Barrow Island workforce as part of the Stand Together for Safety weekend. warning signs.” Helen conducted eight sessions over two days to share her personal experience and her message about the importance of valuing safety. Gorgon Site Execution Manager Jerry Albers echoed Ms Fitzroy’s words and reminded the workforce that safety is a journey requiring each person to take responsibility for making safe choices and the importance of following the right procedures. “Safety is a mindset on which all injuries and incidents are preventable. It is about valuing your life and your mates,” Mr Albers said. “We want our workforce to understand the value of safety and use the safety procedures we have in place to ensure they go home safely to their families. “We want them to remember Gorgon as not just the biggest and most complex project but the safest project and take that legacy to the next job they work on.” The Gorgon Quarantine Management System (QMS) continues to receive accolades, this time acknowledged by the United Nations (UN) Association of Australia for its excellence in environmental management and stewardship at the World Environment Day Awards. (L-R) Gorgon Quarantine Awareness Coordinator, Jen O’Reilly, Chevron Australia Quarantine Manager, Johann van der Merwe and Gorgon Quarantine Downstream Director, Barbara Marks accept an award for Best Practice Program at the United Nations Association 2012 World Environment Day Awards. World Environment Day Award for Gorgon Announced at a presentation dinner held in Melbourne in June, the QMS received the Business Award for Environmental Best Practice Program, demonstrating excellence in environmental management and sustainable development, consistent with global UN standards. In accepting the prestigious award, Chevron Australia’s Quarantine Manager Johann van der Merwe said the QMS demonstrates that with appropriate environment management, industry and conservation can coexist. “Historically, conservation and development on this scale was thought to be mutually exclusive, however this system shows that sustainable development of resources can occur in ecologically sensitive areas,” Mr van der Merwe said. “The QMS is likely establishing a new global standard and illustrates what can be achieved when community, government and industry work together.” Australia’s UN Representative Chris Woodthorpe echoed these words when delivering UN Secretary-General, Ban Ki-moon’s World Environment Day message. “With smart policies and the right investments, countries can protect their environment, grow their economies, generate decent jobs and accelerate social progress,” Mr Woodthorpe said. “The comprehensive QMS consists of more than 300 procedures, specifications, checklists and guidelines to protect the biodiversity of Barrow Island and its surrounding waters and was recognised by the Western Australian Environmental Protection Authority as likely to be world’s best practice.” 2 | Gorgon Project Update
- 3. Hands-on Experience for Apprentices There’sonly so much you can learn from a book. A solid grounding of technical knowledge, plus hands-on experience and expert teachers make a huge difference to developing skills you have for life. That’s the experience apprentices are getting on the Gorgon Project. One of the Gorgon apprenticeship programs is being run by Kentz Pty Ltd, which has 29 apprentices, with 23 based on Barrow Island between three contracts. Brian Merritt manages the apprentices, along with a team of 70 Kentz electricians, technicians and radio specialists. For Mr Merritt, things have The Gorgon Project has achieved a major project milestone with the recent installation of the first jetty support structures at Barrow Island. The installations, comprising a concrete caisson and steel topside, are the first of 56 that will be positioned as part of the LNG jetty. They will support the jetty roadway trestles and piperacks. The placement of the first jetty come full circle. “When I was starting out, one of the first big projects I worked on was the Snowy Mountains Hydro Electric scheme. It’s only looking back now that I realise it was such an iconic project,” Mr Merritt said. “And now here I am – on another iconic project – but this time I’m teaching the apprentices. “Every Kentz apprentice needs to build their skills and develop their knowledge. Working safely is also absolutely essential. Our team also focuses on having pride in your workmanship and a solid team-work approach. These are skills that will help you throughout your career.” Jetty Installation Underway caissons at Barrow Island is a significant accomplishment for the team, marking the start of visible progress towards the eventual 2.1 km jetty. Constructed by Saipem Leighton Consortium at Henderson’s Australian Marine Complex, each caisson structure weighs 3500-tonnes and will be transported to the island, four caissons at a time, using an ocean-going tug and Brian Merritt (far right) with a group of apprentices that are working on Barrow Island. The development drilling campaign in the Jansz-Io Field is underway with the first of ten wells spudded by the ExxonMobil operated Deepwater Frontier drillship. Greater Gorgon General Manager Colin Beckett said the campaign marked another significant 2012 milestone for the Project. “It is an example of the strength of partnering to achieve strong business outcomes and I commend ExxonMobil, a Gorgon Joint Venture Participant, for overseeing the safe spudding of the first well in the Jansz-Io Field,” Mr Beckett said. The Transocean Deepwater Frontier is a fifth generation, ultra deep drillship that is dynamically positioned, which means it is not anchored, but is kept on location by thrusters, GPS and a sophisticated computer system. It can accommodate up to 160 people and can operate in waters up to 3,000 metres deep. This ExxonMobil drilling campaign is capturing numerous synergies with the Chevron-operated Atwood Osprey drilling program in the nearby Gorgon Field. The 2 rigs are sharing shorebase resources, marine vessels, materials logistics, and air logistics in a true spirit of partnering for the best overall project outcome. Jansz-Io Drilling Campaign Underway specialised submersible barge. Each caisson is installed via a complex operation. Following pre- ballasting, the barge is submerged until the caisson becomes buoyant and has suitable clearance to be towed behind the barge. It is then moved to installation moorings for precise positioning on the sea floor, which is undertaken remotely from another vessel. Gorgon Project Update | 3
- 4. Gorgon is ontrack to reach a number of key milestones this year as good progress is made on construction activities taking place on Barrow Island. Gorgon Downstream Project General Manager Jeff Brubaker said the recent arrival of the first shipment of pre- assembled racks (PARs) on Barrow Island marked the start of a logistically challenging and delicate moment in Gorgon’s construction phase. “This is the year where almost every part of the Project will be in full execution. It is the year when we will truly see Gorgon grow,” Mr Brubaker said. “Right now, about 4,000 people on the island are preparing the site for the arrival of the first processing train module, due later this year.” Four PAR modules reached the island in June and two have already been installed in position. All up, it will take 53 shipments to bring all modules that will make up the gas processing plant. Timely progress is being made on the LNG and condensate tanks while the permanent buildings that will house the Operations Centre are also advancing well. The foundations of the 2.1km LNG jetty are taking shape with the first caissons – or support structures – being placed on the ocean bed. More than 300 people are pre-fabricating 56 caissons at the Australian Marine Complex (AMC) in Henderson. Also at the AMC, the first main cryogenic heat exchanger has arrived, measuring a huge 57 metres long and weighing 630 tonnes. Offshore Work Continues The Gorgon Upstream construction activities on Barrow Island are also progressing. After the successful installation of the nine HDD pipes under North White’s Beach, the cross- island pipeline construction continues. Progress is also being made in the complex inlet area of the LNG plant. Upstream is constructing the large diameter inlet gas piping so that Downstream can follow with module Construction Humming as Timely progress is being made on the LNG and condensate tanks. The plant site is humming with construction activity. 4 | Gorgon Project Update
- 5. Logistics Ramp Up Theconstruction village continues to grow. The foundations of the 2.1km LNG jetty are taking shape with the first caissons placed on the ocean bed. construction and tie-ins. This has resulted in a very coordinated effort between Upstream and Downstream contractors. Gorgon Upstream Development Manager Kevin Shannon said offshore, the upstream team has now drilled and evaluated five wells in the Gorgon Field and the first of 10 wells in the Jansz-Io Field has been spudded by the Exxon Mobil operated Deepwater Frontier drillship. “The team is also progressing with the installation of the offshore pipelines from the shore-crossing site to the Gorgon and Jansz-Io fields,” Mr Shannon said. “We have mobilised the domestic gas pipeline installation contractor, SapuraClough, and its Java Constructor construction barge has started laying the domestic gas pipeline off Barrow Island. “SapuraClough has also mobilised the mainland construction crew and started site preparations there.” The domestic gas export pipeline runs some 99 kilometres from the jetty on Barrow Island to a mainland tie-in point with the Dampier-to-Bunbury gas trunkline. “The domestic gas pipeline is needed initially during the commissioning of the LNG plant as we plan to backflow domestic gas to supply the gas turbine generators during the LNG plant commissioning. After the LNG plant is in operation, there will be significant gas volumes sold to the Western Australian domestic gas market from the project’s gas fields,” Mr Shannon said. “These are key milestones for the project, but what will make these events truly significant is when they are delivered safely.” The Gorgon pipeline scope is truly massive and the importance of the The first two pre-assembled rack modules are now in place on site. pipeline to the project cannot be underestimated, with 800 kilometres of pipe being laid – which is about the distance from Perth to Monkey Mia – and 71,000 joints in total. Some of the pipelines are the most unique ever designed and installed. Gorgon Project Update | 5
- 6. Project Creates Opportunities AsAustralia’s largest single resource development, Gorgon has already committed more than $16 billion to Australian industry and generated more than 7,000 jobs across the country. Gorgon Australian Industry Participation Coordinator Bill Sashegyi said more than 350 contracts for work had been issued and this was expected to increase through the construction period and into operations. “The contracts have been awarded to companies all around Australia, from Karratha to Bunbury in Western Australia, through to the Mornington Peninsula, Newcastle and Brisbane on the east coast of Australia,” Mr Sashegyi said. “The Gorgon Project remains on track to deliver about $20 billion on Australian goods and services during the construction phase and we are continuing to work closely with local contractors to ensure Australian companies realise the opportunities,” Mr Sashegyi said. Lasting Benefits In Adelaide, Osmoflo has constructed five separate desalination plants to MPower’s temporary plant will power the entire gas processing plant on Barrow Island during the construction and commissioning phase. Alstom Grid’s contract with the Gorgon Project is keeping its suppliers busy. convert seawater into fresh drinking and processing water. Osmoflo Managing Director Marc Fabig said the unique challenges presented by the Project had enabled the company to build its workforce. “Doing a benchmark project like this, it enables people to further develop their skills – for example, designing and 3D modelling capabilities – and that has a long lasting benefit,” Mr Fabig said. Powering Construction Running Gorgon’s construction facilities, such as the desalination plants, requires a reliable electricity source – a major challenge in a remote location like Barrow Island. Sydney-based company, MPower has successfully delivered a solution with the construction of a 20MW continuously rated temporary power plant for the entire Barrow Island gas processing plant during the construction and commissioning phase. MPower Projects Managing Director Anthony Csillag said the company’s innovative solution is designed to withstand category five cyclones and minimise environmental impacts on Barrow Island. “What we are doing is certainly a world-first. The space allocated on Barrow Island was quite small for this size power station, so we supplied the highest density power pack per square metre,” Mr Csillag said. As well as drawing on MPower’s technical expertise, the scope of the Gorgon contract presented other opportunities for the company’s staff. MPower Operations Manager Eric Nemme said the company runs a dual trade apprenticeship program for electrical and mechanical apprentices. “The Gorgon Project has allowed our apprentices to work on both the electrical and mechanical aspects of the Project in one hit, rather than diversifying over various smaller scale projects. So, it’s enabled them to do both trades,” Mr Nemme said. Busy Suppliers While MPower has helped power the construction phase of the project, a series of contractors across Queensland and New South Wales are constructing the network of sub- stations that will power Gorgon’s gas processing plant. Among them is Alstom Grid which is delivering orders worth $250 million, including 41 pre-fabricated powerhouses and 30 transformers. Alstom Australia Managing Director Mohan Somasi said that the company’s contract with the Gorgon Project has seen its staff numbers grow and has 6 | Gorgon Project Update
- 7. Hart Marine isfabricating a specialist 16 metre pilot boat for the Gorgon Project. for Business Across Australia Osmoflo has designed and is constructing four separate desalination plants capable of producing a total of seven megalitres of water a day. kept its suppliers busy. “We have employed 150 staff members on this project. We have also employed more than 40 contractors in Australia – such as building suppliers, steel contractors, wiring contractors, and also AC distribution contractors,” Mr Somasi said. New Opportunities Another contractor to have benefited from Gorgon’s local investment is Custom Transportable Buildings which has been fabricating electrical switch rooms for the Project. Custom Transportable Buildings Managing Director Simon Griffiths said Gorgon has brought additional work and skills to the Newcastle based business. “Prior to the Gorgon Project we used to use electrical subcontractors whereas now we actually have our own electrical team,” Mr Griffiths said. “This opens up new doors for us within the liquefied natural gas industry. We’ve been exposed to a lot of different standards and specifications and now we’re confident about going into other projects.” World Leader On Victoria’s Mornington Peninsula, boat-builder Hart Marine is fabricating a specialist 16-metre pilot boat that will transfer pilots to the tankers arriving at the Barrow Island LNG jetty. Hart Marine Managing Director Mal Hart said the pilot boat will be a world leader in its class of pilot boats and comprises a range of materials built Australia-wide. “We have skills from laminators to guys that are experts in the infusion process of composite. We also do all our own metal fabrication, so all the stainless steel work and metalwork that’s required for the pilot boat – from bow rails and life buoy holders, to man overboard recovery ramps – that’s all built in our workshop,” Mr Hart said. “We also install all the engines here, so we’ve got mechanics, electrical people, and cabinetmakers. We have a vast array of manufacturing skilled staff here to build this craft. “We have lots of companies that are involved, from paint manufacturers to metal companies supplying stainless steel.” Training Local Crews Once completed, the pilot boat will play a key role in marine services at the Barrow Island LNG terminal. Over the first 20 years of Gorgon operations, these services will be managed by Svitzer Australia. “As the largest maritime employer in Australia, Svitzer will draw on a wealth of knowledge available within the business to ensure locally employed crews are secured and trained to operate these state-of-the-art tugs,” Svitzer Australia Managing Director Mark Malone said. “This will include a program to employ and train local indigenous people with an interest in pursuing marine qualifications.” Gorgon Project Update | 7
- 8. Chevron contacts The GorgonProject is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent). Chevron Australia Pty Ltd ABN 29 086 197 757 250 St Georges Tce, Perth WA 6000 Ph: +61 8 9216 4000 Fax: +61 8 9216 4166 Email: gorgon.info@chevron.com Web: chevronaustralia.com C000000 RECYCLED Paper made from recycled material Strengthening Pilbara Networks More than 100 Pilbara business women attended the recent Women in Business Luncheon in Karratha. Sponsored by the Gorgon Project, the Pilbara Business Development Series consisted of a Women in Business Networking Luncheon and Business Development Workshops held over two days. Small Business Centre West Pilbara Manager Rachel Whiting said the series provided local business women with the opportunity to develop their networks and gain from the experience of the guest speakers and their experience managing work-life balance Key Part of MOF Completed The final X-bloc has been laid for the breakwater at Barrow Island’s new Materials Offloading Facility (MOF). Completion of the breakwater was a major milestone in the east MOF works, with the remainder of the facility to be finished in the coming months. Designed to withstand cyclones, the breakwater is made of 140,000 cubic metres of reclaimed dredge material, 150,000 tonnes of rock, 24,000 square metres of geotextile lining material and 6,550 X-blocs. At a length of 355 metres, the breakwater is an important part of the MOF as it provides shelter for the works around the Heavy Lift Facility during the construction period. In the operations phase it will provide a safe haven for the vessels in the tug pen area. Situated at the top of the Materials Offloading Facility, the breakwater will provide shelter for the Heavy Lift Facility during the construction phase of the Project. in the busy resource industry. “The objective of the business development workshops was to provide affordable information that is relevant to small and home-based businesses in the region,” Mrs Whiting said. Greater Gorgon Asset Support Manager Dr Julia Martin attended the luncheon as a guest speaker. Dr Martin, who has worked in the resource sector for more than 25 years as a research scientist, consultant and environmental manager, is currently a member of the Greater Gorgon management team. Dr Martin reflected on her experiences and how she has applied these lessons to mentoring Chevron staff on career management. “Participating in the event was a great opportunity to continue to showcase Chevron’s commitment to the Pilbara community and developing our people,” Dr Martin said. The Pilbara Business Development Series events are jointly run by the Small Business Centre West Pilbara and the Karratha and Districts Chambers of Commerce and Industry (KDCCI). 8 | Gorgon Project Update ABU120600377