Issue 31, December 2012 Gorgon Project Update Feature Articles Gorgon Brings Business to Henderson Page 2 Full Steam Ahead on Upstream Activities Page 4 Little Device Doing Big Things Page 6 The plant site continues to take shape with the rooves on both LNG tanks now in their final position (foreground). Work continues on the construction of the Project s 2.1 kilometre LNG jetty (background). Local Businesses Rewarded for Innovation Page 8 First Gas Turbine Generator in Place The first gas turbine generator (GTG) arrived on Barrow Island in early December and has been set on its foundation. This marked a major milestone for the Project, as the GTGs will play an essential role in the operation of the liquefied natural gas (LNG) plant. Greater Gorgon Development Director Scott Young said that once installed the GTGs will operate as a standalone power plant, generating the electricity required to power the LNG plant and associated facilities. In total, five GTGs will be delivered and installed on Barrow Island, with a combined site rating of 584 megawatts (MW) of electricity to support the LNG plant, Mr Young said. Each GTG is approximately 48 metres long, 20 metres wide, 24 metres high and weighs 2,200 tonnes. To give you an idea of the scale, the power from the five GTGs could energise 584,000 homes for one hour. The remaining four GTGs will be progressively shipped to Barrow Island starting in 2013. The first gas turbine generator is transported across Barrow Island to the LNG plant site where it is now in position. 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). Gorgon Project
Gorgon Brings Business to Henderson Click here to watch the video. The Gorgon Project has created jobs for over 9,000 people Australia-wide and continues to inject billions of dollars into the economy. With construction activity taking place on Barrow Island, around 60 kilometres off the northwest coast of Western Australia, moving construction items to and from the island involves a major logistics campaign and central to this is the Australian Marine Complex (AMC). Located in Henderson, around 23 kilometres south of Perth, the AMC is playing a key role supporting the Project s construction activity, from transportation to fabrication, and is creating significant benefits for local businesses. The CB&I Kentz Joint Venture, Saipem Leighton Consortium, AGC and Civmec are just some of the AMC-based companies undertaking work on the Project. AGC Awarded More Fabrication Work In November AGC Industries announced it had secured a contract with Subsea 7 for the fabrication of subsea spools for the Gorgon Project. Preparatory work commenced immediately with the six-month fabrication program starting next year. The work, worth tens of millions of dollars, will be performed at the AMC and is expected to create work for approximately 60 new staff. AGC is testing adjustable pipe support structures at the AMC. AGC AusGroup Limited subsidiary, AGC Industries, has been awarded four contracts on the Gorgon Project, which are worth well over $70 million. One of the contracts involves fabricating adjustable subsea pipe support structures at the company s facility in Kwinana, which has created 150 jobs. Once complete, the structures are taken to the AMC for testing. AGC Business Development Manager David Furness said AGC had engaged a variety of local contractors to assist with the testing at the AMC. The pipe support structures are a precision engineered item, so we have engaged crane drivers, riggers, dogmen, welders, boilermakers and trade assistants in the factory acceptance testing of these structures, Mr Furness said. Civmec In two separate contracts, Civmec has been contracted to construct 45,000 cubic feet of pre-cast reinforced concrete foundations and around 10,000 tonnes of shop fabricated structural steel, which will be used in the construction of the gas processing plant. These contracts have resulted in jobs for around 200 people at the AMC. Civmec Chief Executive Officer Pat Tallon said that working out of the AMC has a number of advantages. The biggest win for me is that we are securing the future of fabrication in Western Australia. So number one, we re winning projects but number two, we re giving the opportunities to young people to come here and be trained up, Mr Tallon said. Civmec is undertaking two separate contracts for the Project at the AMC. CB&I Kentz Joint Venture (CKJV) CKJV was awarded a contract to provide mechanical, electrical, instrumentation and commissioning support for the construction of the three LNG trains and the domestic gas processing plant. The Joint Venture has recruited 1,000 people to carry out the work in Henderson and on Barrow Island, and recently launched a campaign to find an additional 600 workers by early 2013. We have let over 15 subcontracts and have another 17 in the works, with a majority of these companies based in the local area. We forecast that we will get to around 100 subcontractors by the end of the project, Mr Guyer said. There are over 200 people working at CKJV s facility at the AMC. Saipem Leighton Consortium The Saipem Leighton Consortium (SLC) is designing and constructing the Project s 2.1 kilometre LNG Jetty and Marine Structures. Concrete structures, known as caissons, are manufactured at the AMC before being transported to Barrow Island. Building the caissons at the AMC has been very important to the Consortium as it s given us ready access to people, equipment and expertise. It has made building the caissons a much more efficient operation, Mr Dunn said. CKJV Senior Construction Director, John Guyer said the contract has also created work for other Hendersonbased companies. Leighton Contractors Oil and Gas General Manager Graeme Dunn said the Consortium is employing around 200 people at the AMC. The Saipem Leighton Consortium is constructing 56 caissons at the AMC which will form the foundation of the LNG jetty. 2 Gorgon Project Update Gorgon Project Update 3
Full Steam Ahead on Upstream Activities Gorgon s Upstream scope includes the design and construction of all wells and facilities to source gas from the Gorgon and Jansz-Io gas fields, transport it to the liquefied natural gas (LNG) plant on Barrow Island and deliver domestic gas via a pipeline to the Western Australian mainland, where it will tie-in to the existing Dampier-to-Bunbury natural gas pipeline. It also includes oversight of the wells and facilities required for the carbon dioxide injection facility on Barrow Island. Drilling On the drilling front, all 8 development wells at the Gorgon field have been drilled and cased to a total depth. The Atwood Osprey drilling rig will return in early 2013 to commence well completions. At the Jansz-Io field, the subsurface sections of all 10 wells have been drilled and cased. Jansz-Io Field Offshore Pipeline and Umbilical Installation The offshore feed gas pipeline system involves laying a production pipeline, a monoethylene glycol (MEG) pipeline and utility pipeline from North White s Beach, on the west coast of Barrow Island, to each gas field. Installation of the 6-inch MEG and 8-inch utility pipelines was recently completed. In 2013 the pipe-laying vessel Solitaire will commence work to install the two production pipelines. Two subsea umbilicals will provide hydraulic and electrical power, communications, and contingency chemical supplies to the subsea production systems at both fields. Installation of the umbilicals will take place in early 2013. Stabilisation of the pipeline has commenced with the first placement of rock taking place in late November. Cross Island Pipeline Work continues on the 12.5 kilometre pipeline sections that will deliver gas from the west coast of Barrow Island to the LNG processing plant and the domestic gas plant. Considerable work has taken place at the inlet area of the plant site to install the six pipelines and two subsea umbilicals down the slope. Installation of the pipelines and umbilicals at the inlet area of the LNG plant site is almost complete. Carbon Dioxide Injection Project Preparation of the CO 2 injection well sites on Barrow Island has commenced. The purpose built rig, Ensign 963, has been delivered to Barrow Island and will begin the CO 2 well program in 2013. The Australian Government has committed $60 million to the Gorgon Project as part of the Low Emission Technology Demonstration Fund. Installation of Subsea Equipment Some of the subsea equipment has successfully been installed at the Gorgon and Jansz-Io fields recently, including: The first of 10 subsea trees at the Jansz-Io field. There will be eight installed at the Gorgon field. Subsea trees provide containment to, and control of, production wells; Pipeline end termination structures (PLETs) on some of the lines at both fields. PLETs are being installed to support the spools that connect the pipelines to the adjacent subsea structures; and Subsea adjustable pipe support structures (APS) at both fields. Twelve APS s will be installed on the seafloor to assist in aligning the landing angle of the related pipelines into the PLETs. The first subsea tree was installed at the Jansz-Io field in September. Installation of an adjustable pipe support structure at the Gorgon field. The Atwood Osprey drilling rig can be seen in the background. Gorgon Field Barrow Island Dampier to Bunbury Natural Gas Pipeline Domestic Gas Pipeline Installation In November, the main offshore pipe-lay activities were completed and the focus has now turned to stabilising the pipeline using rock bolts. Stringing, welding, and coating activities continue for the onshore section of the pipeline. Construction has also begun on the domestic gas metering station, located near the tie-in to the Dampier-to-Bunbury natural gas pipeline. The Kalinda Kalinda, pipe-lay a shallow vessel water waiting pipe-lay for high vessel, tide waiting before for high tide before recommencing recommencing activities activities on the on domestic the domestic gas gas pipeline. pipeline. 4 Gorgon Project Update Gorgon Project Update 5
Rock-Bolting Commences on Domestic Gas Pipeline Secondary stablisation of the offshore domestic gas pipeline is well underway with two purpose-built rigs installing stabilisation anchors, known as rock bolts, along the pipeline. Standing at a height of 11.5 metres and weighing around 70 tonnes, the rockbolting rigs will install up to 1,600 pairs of rock bolts in water depths varying from seven to 22 metres. Perth-based engineering firm Robert Elks & Associates carried out the structural and mechanical engineering design and fabrication detailing for two identical rock-bolting rigs, providing one operational and one standby machine. Principal Engineer Robert Elks said that workforce safety was one of the firm s major design considerations. The rigs are used to install rock bolts along the 20-inch diameter domestic gas pipeline. On this scale, the self-propelled, self leveling, reloadable rock-bolting rig we have designed is a new concept. Not only does it install anchors rapidly and accurately, but it also controlled remotely which limits diver Little Device Doing Big Things A small device that fits into the palm of a hand has been developed as yet another measure to help protect Barrow Island s unique native species. The acoustic sensor developed by researchers from Edith Cowan University s (ECU) School of Engineering will help track the Asian House Gecko to prevent it from hitchhiking on overseas deliveries destined for Barrow Island. Gorgon Quarantine Manager Johann van der Merwe said the device complemented the quarantine management system s (QMS) pre border protection measures. The high-tech wireless network known as Continuous Roving Observation Wireless Network will be placed on vessels travelling to Barrow Island to act as an early warning alert system, said Mr van der Merwe. It will form another barrier of protection in the comprehensive detection system that is already in place by listening for the distinctive call of the Asian House Gecko, which it can detect up to 25 metres away. ECU Professor Adam Osseiran, who developed the high-tech network with a team of researchers, said it was an innovative solution to a potential biosecurity risk. If the distinctive sound of this species is detected, it will send a text message to a dedicated Chevron Quarantine Inspector pinpointing its exact location, Professor Osseiran said. involvement to observation, rather than operation, Mr Elks said. The rock-bolting work represents one of the final activities before precommissioning activities commence on the domestic gas pipeline. Chevron Australia Gorgon Quarantine Manager Johann van der Merwe (left) and ECU Professor Adam Osseiran show off the acoustic sensor developed to track Asian House Gecko. Monadelphous Awarded Contract Extension Monadelphous Group Ltd recently announced it had been awarded a one-year extension to the facilities management services contract it has with the Project. The contract, valued at approximately Shore Crossing Recognised as Benchmark of Australian Environmental Engineering The Project s shore crossing was recently awarded the Environmental Engineering Excellence Award representing world s best practice in environmental engineering for Australia. The Australian Engineering Excellence Awards celebrate the world class expertise and innovation in developing and implementing engineering solutions. Gorgon Upstream Facilities Project Manager, David Equid, who received the award on behalf of Chevron, said the shore crossing to bring gas from the Gorgon and Jansz-Io fields to the processing plant on the east coast Local Company Takes Safety Global Perth-based company, Swivelpole, has expanded its business into the global energy market following the selection of its innovative light mounting system for the Gorgon Project. The Swivelpole system eliminates the risk of working at heights by allowing the top of a light pole to be lowered to a position that enables a single person to safely perform maintenance activities without the use of a ladder. Swivelpole Business Development Manager Jim Friel said that over 5,000 poles have been supplied to the Project so far and this was helping to increase the company s opportunities on a global scale. While we have been supplying our product to the mining industry in Australia for a number of years, our expansion really took off when Swivelpole was specified for the Gorgon Project, Mr Friel said. Swivelpoles have been installed on $130 million, is for the operation and maintenance of water and wastewater treatment plants, power generation and distribution systems, as well as the management and maintenance of various buildings, vehicles, plant and Swivelpoles have been installed on the LNG plant modules on Barrow Island. Barrow Island and due to the global reach of the Project we are beginning to supply our product to Gorgon fabrication yards in Indonesia, South Korea and various other parts of Asia. We see our association with Gorgon as a contributing factor to our ever equipment on Barrow Island. The original contract was awarded in November 2009 and was for an initial three-year term. Approximately 175 people were employed as a result of the contract in the last financial year. presented some challenges given Barrow Island s Class A Nature Reserve status. The shore crossing applied the trenchless solution of horizontal directional drilling technique, a proven engineering technique to protect the marine environment, Mr Equid said. increasing sales volumes and it s exciting to see Swivelpole beginning to be specified in Europe and North America. The growth in demand for Swivelpole s products has seen the company increase its staff from nine to 52 employees in just over 18 months. 6 Gorgon Project Update Gorgon Project Update 7
New Program Opens Employment Doors for Aboriginal Trainees Chevron Australia recently partnered with the Challenger Institute of Technology to provide training for 12 students who participated in the inaugural Gorgon Entry Skills Training Program. Dredging Program: One Year On A year on since the Project completed its dredging program and there s a buzz of activity on and off the fully operational materials offloading facility. The program saw the removal of 7.6 million cubic metres of material and most importantly was completed with minimal impacts to the marine environment. Challenger Institute of Technology Director Construction & Transport Michael Scally (far left); Chevron Australia Community Engagement Advisor Gorgon Rod Mapstone (front row, fifth on the left); Challenger Institute of Technology General Manager Training Services Jill Jamieson (front row, second on the right), with students in the inaugural Gorgon Entry Skills Training Program. The students graduated from the four-week program in September and were offered employment opportunities on the Project with Agility, CB&I Kentz Joint Venture (CKJV), Mammoet and DB Schenker. Challenger CEO Liz Harris said the participants were selected and assisted throughout the course by the Australian Indigenous Business Alliance Group. By working with industry to deliver this type of tailored training, an innovative program has been devised that has provided a positive experience for the participants, Ms Harris said. The students are now working at the Australian Marine Complex and in the Henderson area. As part of environmental monitoring associated with the dredging, Chevron conducted baseline and post-development surveys of the fish communities across four different habitats in the waters surrounding Barrow Island. The survey s identified a total of 45, 519 individual fish from 347 species and 65 families. The Project s marine experts worked with the University of Western Australia and Sinclair Knight Mertz to identify the species, which has now created an invaluable resource for scientists conducting future fish research in the region. Local Businesses Rewarded for Innovation The Project recently partnered with the Karratha & Districts Chamber of Commerce & Industry (KDCCI) for the third year running to host the Annual Business Excellence Awards. The event recognises the achievements of small businesses across the region and aligns with the Regional Economic Development focus area of the Project s Social Impact Management Plan. Several of the winners in the 16 categories are working with Gorgon, including: All Pest Northwest Pilbara Joblink Small Business Centre West Pilbara Karratha International Hotel All Pest Karratha Branch Manager Gary Althaus (left) with Chevron Australia Gorgon Operations Manager Barrie McLaughlin. Chevron contacts 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 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). recycled Made from recycled material C000000 8 Gorgon Project Update ABU121000172