Professional Documents
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February 2011
in this issue
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Petrofacs journey
To mark our 30th anniversary year, those responsible for the creation of Petrofac look back on the journey so far
Petrofacts is designed and published by Petrofac on a quarterly basis. To provide comment or contributions please contact: Corporate Communications Hazel Meldrum/Claire Baxter editor@petrofac.com Engineering & Construction Engineering & Construction Ventures Engineering Services Kaye Krause-Whiteing kaye.krause-whiteing@petrofac.com Offshore Engineering & Operations Jilly Powell jilly.powell@petrofac.com Training Services Ivana Petrovich ivana.petrovich@petrofac.com Production Solutions Energy Developments Elinor Geary elinor.geary@petrofac.com Cover image Bay taken from canoe, Ontario, Canada the winning entry in the Picture Petrofac competition taken by Peter Martin.v
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Picture Petrofac winners announced
glossary of abbreviations
E&C Engineering & Construction FPF Floating production facility MOPU Mobile Offshore Production Unit E&CV Engineering & Construction Ventures HSSEIA Health, safety, security, environment and integrity assurance NOC National oil company EPC Engineering, Procurement, and Construction IOC International oil company OE&O Offshore Engineering & Operations ERSC Emergency Response Service Centre JV Joint venture FEED Front end engineering and design LSTK Lump-sum turnkey FDP Field development planning LTI Lost Time Incident
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TEMPO roll-out success
New enterprise resource planning system launched in Malaysia and India
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Enhanced presence in Nigeria
Strategic alliance formed with Nigerias Seven Energy
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Board and management changes
Appointments enhance senior management team and Board
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Singapore training centre
Awarded A grade in quality assessment
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Environment month
Our teams celebrate third successful environmental initiative
February 2011
WelCoMe to our first 2011 eDition of PetrofaCts. this edition co-incides with the 30th anniversary of the group and inside you will find an interview with some of Petrofacs founders which charts the groups history and progress so far.
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Looking back on 2010 I am delighted to say it was another exceptional year for our group. We closed the year with record backlog and we continue to see strong growth potential in 2011 and beyond. It is gratifying to continue to win business with existing customers in geographies we know well. We were recently awarded our sixth EPC project In Algeria to develop southern fields in the In Salah development on behalf of In Salah Gas. As we go to print, I have just returned from a trip to Kuala Lumpur where I attended a signing ceremony hosted by our valued customer PETRONAS for a US$800 million Risk Service Contract for the Berantai field development. Just at the close of the year we announced that Petronas Carigali Sdn Bhd had awarded Petrofac a US$280 million contract to provide EPCIC services for the SEPAT offshore early production system on the east coast of Malaysia. When taken in combination with the phase II development of the Cendor field, Petrofac is now managing projects in Malaysia worth in excess of US$2 billion. This is a remarkable achievement and further details of both of these new developments can be found inside this edition. During 2010 we were awarded a number of important contracts for new customers expanding our geographic footprint; such as our 15-year production enhancement contract in Romania with Petrom, and the second phase of the South Yoloten project in Turkmenistan worth US$3.4 billion. In line with our co-investment strategy, we took a 20% interest in Gateway Storage Company Limited and invested in Nigerias Seven Energy, giving us a foothold in the Nigerian oil & gas market. We have also been able to bring our EPC capability to bear in the UK and work is now underway on the development of the LagganTormore gas processing plant on the Shetland Islands for Total. The group completed four small complementary acquisitions during the year and two of these - CO2DeepStore and TNEI Limited have enabled us to create Petrofac new energy to service the low carbon and renewable energy sectors. Amidst this, we have continued to focus on developing and maturing our internal business processes and launched TEMPO our tailored Oracle ERP system, in Chennai, Mumbai and Kuala Lumpur with more roll outs planned for during this year. 2010 was also the year of integrity and quality across our engineering businesses and you can read about our progress on page 22. We have continued to recruit and grow our teams, especially at a senior and functional level and we have been joined by a number of key individuals across the business. In January we welcomed Andy Inglis to Petrofac as chief executive of Energy Developments and Production Solutions. Andy will also join our Board on 1 March 2011. Further details on Andy and our other recent Board changes can be found on pages 26 and 27. Overall 2010 has been a fantastic year for Petrofac and I am confident that we can look forward to bright prospects for 2011 and beyond.
February 2011
Cover story
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Along with Peter, our congratulations also extend to the remaining twelve finalists: 1. 2. 3. 4. Andrew Vaughan, Aberdeen, Scotland Jim Kelly, Kuala Lumpur, Malaysia Nasrum Mohamad, Kuala Lumpur, Malaysia Paul Fidder, Dubai, United Arab Emirates 5. Gaurav Chakraborty, Sharjah, United Arab Emirates 6. Bill Boyter, Aberdeen, Scotland 7. Nilima Sawant, Mumbai, India 8. Pankaj Vartak, Sharjah, United Arab Emirates 9. Guillaume Roux, Woking, England 10. Robert Marks, London, England 11. Jamil Boudiab, Sharjah, United Arab Emirates 12. Fanny Turcotte, Abu Dhabi, United Arab Emirates
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suCCess in Malaysia
Key facts Contract valued at approximately US$280 million facilities mirror those of the Cendor phase I development, also undertaken by Petrofac water depth of approximately 65 metres first oil is expected before the end of 2011
Under the RSC the group has little exposure to oil & gas prices or production levels. The terms of the RSC are such that the Berantai partners will receive a rate of return linked to their performance against an agreed incentive structure, including project costs, timing to first gas and sustained gas delivery after project completion, with an ongoing incentive structure based on operational uptime. Berantai is an undeveloped gas field located approximately 150km offshore Peninsula Malaysia. The field was inititally discovered by Exxon in the 1970s but has remained undeveloped until now. Petrofac, Sapura and Kencana - together the Berantai partners - will develop the field and subsequently operate it for a period of seven years after first gas production. Commenting on the partnership Rob Jewkes, managing director, Petrofac Energy Developments said: We are looking forward to working with local partners, Kencana and Sapura, both of whom bring unique capabilities and local knowledge to this project. The project is hoping to achieve first gas from the field before the end of 2011. The full field development, excluding delivery of the floating production storage and offloading (FPSO) vessel, is anticipated to require capital investment of approximately US$800 million (of which Petrofacs share is 50%). Explaining how the field will be developed, Jewkes added: The fast-track field development plan we have submitted includes the installation of a wellhead platform to support the drilling of eighteen wells, with a second wellhead platform expected to be installed in a subsequent phase. Both platforms will be connected to an FPSO vessel, which will undergo modification to ensure suitability for the development. Produced gas will be exported by subsea pipeline via the Angsi Field, while oil will be offloaded via shuttle tanker. We are excited about this project and about working once again with PETRONAS, a customer we know well. We will be drawing on our extensive experience of fast track developments to provide a range of fully integrated services from design and construction through to subsurface capability and operations.
We are excited about this project and about working once again with PETRONAS, a customer we know well.
February 2011
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PROJECT FOCUS: the national training Centre suPPorting the DeveloPMent of syrias WorkforCe
The National Training Centre, which opened its doors to students in September, forms part of the Syrian Governments commitment to develop competent personnel for the growing oil & gas sector. The centre was refurbished and equipped by Petrofac and donated by the group to the Syrian Government.
PROJECT FOCUS: Jihar gas Plant introDuCing hyDroCarbons anD Celebrating key safety Milestone
During November our Jihar project with Hayan Petroleum Company (HPC) successfully introduced hydrocarbons into the gas plant.
Commenting on this important development, Maher Mustafa, Jihar project director said: During November the project team of HPC and Petrofac celebrated achieving mechanical completion and the successful introduction of hydrocarbons into the plant. This was the culmination of significant efforts on the part of everyone involved but a special note of thanks must be extended to the construction and commissioning teams for their considerable endeavours in helping us reach this milestone. The Hayan block is located near to the town of Palmyra and consists of gas and condensate oil fields at Jihar, Al Mahr and Jazal fields. Our project scope is for the EPCC of the Jihar gas processing facilities involving mainly the gas treatment plant with an inlet capacity of 141 million standard cubic feet per day, liquid petroleum gas (LPG) recovery of 350 cubic meters per day (m3/ day) and condensate of 1,800m3/day, LPG storage and loading facility, gas gathering and condensate collecting systems, satellite gathering stations, well sites and flow lines, utilities and offsite facilities, transport pipelines, and also living quarters. The Jihar project has been a great success for Petrofac in Syria and continues to progress on target for final completion and handover in Q1 2011. Through the dedication of everyone involved there has also been an enviable HSE track record throughout this project where seven million man-hours have been completed without a Lost Time Incident (LTI). Mustafa explains: This HSE performance has been down to the meticulous attention paid to safety through all aspects of the planning, design and execution of the project. This was evident throughout the project and the results now speak for themselves. As Petrofacts goes to press, we are in the final stages of the project, and will be completing the performance testing in order to hand over the plant fully to Hayan Petroleum Company in the early part of 2011.
The training centre, the first of its kind in the country, provides competence-led training to the workforce of General Petroleum Corporation, the parent company of the Syrian Petroleum and Syrian Gas companies. Designed by Petrofacs Training Services business, the facility has been built on a brownfield site near Al Bisa, Homs in central Syria. The centre can accommodate 120 delegates each year and the programme starts with three months of technical English language training followed by nine months of technical training incorporating the electrical, mechanical, instrumentation and production disciplines. Self-sufficient in five years The centre will be operated by Petrofac Training Services for five years. It is currently staffed by a 30-strong Petrofac-led team including nine expatriate instructors, but over time all instructors will be local, as Paul Groves, managing director of Petrofac Training Services explains: We have applied our knowledge and experience to design and develop the centre and for the next five years we will provide the operations support for the facility. During this time, we will be recruiting, training and developing local instructors and managers to create a sustainable facility where Syrian students are being trained exclusively by Syrian instructors by 2015. An unrivalled offering The ability to offer world-class training either through the network of Petrofacs training facilities, or through the creation of bespoke in-country sites is a fundamental part of Petrofacs differentiated offering. By including the training and ongoing development of local staff within the wider EPC projects, governments and national oil companies can benefit from increased efficiencies and reduced training expenditure while improving their workforce competence and increasing their levels of local content.
7 million
The number of LTI free man-hours completed during the Jihar project so far
February 2011
ProJeCt uPDate
Key facts South Yoloten field is situated approximately 400km south east of the capital Ashgabat It is expected to export 20 bcma of gas Second phase of the contract scheduled to last 31.5 months Feed gas from the field contains up to 6% H2S
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PetrofaCs story
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February 2011
Petrofacts has been talking to those responsible for the creation of the company and the inspiration behind its 30-year journey. Group chief executive, Ayman Asfari will also mark his 20th year with the company in 2011; he believes the building of Petrofac has truly been a team effort.
At the end of 2010 as he accepted the Ernst & Young UK Entrepreneur of the Year award, Ayman Asfari thanked all of the 13,000 people within Petrofac, dedicated the award to them all and said he was simply the public face of the group. At Petrofacs Leadership Conference in November Asfari reflected on the groups journey and his vision for the future. He cited a number of early events and the people who influenced him and the future direction of the group as being instrumental in its subsequent development and success. Its no surprise that top of his list was Maroun Semaan, Petrofacs group chief operating officer, who co-founded Petrofac International with Asfari in 1991. Asfari and Semaan were friends and industry peers, and it was Asfari that introduced Semaan to Ralph Martin, then CEO of Petrofac Inc, a producer of modular plant based in Tyler, Texas. Together with the Petrofac team of the era, including: Lou Owen, Greg Hendrickson and Gordon McLeod, they hatched a plan to create Petrofac International, a Middle East-based small to medium-sized EPC provider. Recounting those early meetings which started in the late 1980s, Ralph Martin, one of the original founders of Petrofac Inc, and the CEO of the time, said: We had worked successfully with Aymans previous company on a project in Oman, and I was introduced to Ayman through a senior colleague at Occidental. Ayman then introduced me to Maroun. At that time Ayman was talking to a Canadian company about forming a joint venture and it made me realise that if Ayman and Maroun were going to be playing in the field, I wanted them on our team. Martin clearly had high hopes for the joint venture with Asfari and Semaan but did he ever believe Petrofac would go on to enjoy such tremendous growth and success? If I had, I would never have sold my stock when I retired! Asfari himself cites Martin as his mentor and inspiration. I count Ralph as one of my closest friends. I respect and admire him immensely. We each had different strengths but shared a vision for Petrofac which aligned us when we were discussing the joint venture. So just how did it come to be that two Middle East-based engineers, who knew each other but had never worked together, formed an alliance with a US business with an established business model and a ten-year history? Maroun Semaan recalls those early discussions, I joined Petrofac International officially on 1 September 1991, but the journey began much earlier. Ayman and I first came to know each other in the early 1980s when we were working for different organisations in Oman, sometimes competing against each other for work in the local market. I soon realised he had strong ambitions to set up an oil & gas contracting
Ralph Martin
Ayman Asfari
Joined Petrofac: January 1981 First position: Chief executive officer of Petrofac Inc Final position: Chairman of Petrofac Limited Proudest moment: When the billion dollar job was signed in Algeria - it was signed in the Petroleum building in Algeria which overlooked Algiers harbour. The salad and soup were served on very nice china then the main course was lamb on a spit and you tore the meat off and ate it with your right hand. Toughest challenge: 1981 was a terrible year in the oil business but we were fortunate enough to get a small refinery job through a promoter in Hong Kong. We made a million dollars on the job which gave us some operating capital! Which one word or phrase would you use to sum-up Petrofacs journey from then to now?: Amazing!
Joined Petrofac: March 1991 First position: Chief executive officer of Petrofac International Current position: Group chief executive of Petrofac Limited Proudest moment: There are so many moments when I feel proud, such as: visiting a project and being struck by the magnitude of what we are involved in receiving appreciative feedback from a customer or shareholder watching a new recruit blossom and grow inside Petrofac Toughest challenge: Again there were a few: before we won our first contracts we had no resources, no systems and no capital! when we invested US$100 million in the Ohanet project the total equity of Petrofac was only US$40 million! selling the US business was without doubt the toughest decision I have ever had to make Which one word or phrase would you use to sum-up Petrofacs journey from then to now?: Weve come a long way in 30 years but our potential for continued growth is still tremendous. I have enjoyed every minute of it! Greg Hendrickson was the chief financial officer and remembers the time well: The sleepless nights revolved primarily around how to bid and execute larger projects, and we took on any project that was in our skill set and worked hard to gain larger, more lucrative projects. We came close to failure in 1984, when we engineered and built a plant for a customer that ended up in bankruptcy. We had invested most of our working capital and available credit in the project and were at the mercy of the bankruptcy courts. Fortunately the project was not complete at the time when the customer filed for bankruptcy and so we were able to negotiate a payment that returned most
business in the Middle East and wanted me to join in. This vision became clearer in early 1991 when discussions with Petrofac Inc culminated in the establishment of Petrofac International in July of that year as a joint venture company between Petrofac Inc and AMcorp, a company that Ayman and I had just formed. Gordon McLeod joined Petrofac in 1982, left in 2003 but rejoined in 2010: Prior to establishing the joint venture, Petrofacs US business was built around our fabrication shop. Our innovative process designs and fast-track approach were fuelled by the considerable technical talents of Lou Owen and Ralph Martin. When I joined there were only a handful of engineers and our total workforce including the fabrication shop was around 25 people, it was an exciting time when we all wore lots of different hats. Like many new businesses, it took a number of years to grow Petrofac Inc to the extent where it had a robust pipeline and good revenue visibility.
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of our investment in exchange for committing to complete the project. It was through this continued search for growth and development that the idea for the creation of Petrofac International came, but it was met with some strong opposition. The US founders were nervous about the deal and if it had not been for Ralph Martins belief in the duo it may never have gone ahead. Hendrickson continues: Most of us had heard of Ayman from the Oman project we had worked on, but only Ralph had actually met him. So when Ayman came to Tyler and made a very positive yet aggressive presentation on the business plan we were somewhat sceptical that a newly formed company could achieve success and be awarded major contracts as rapidly as Ayman was predicting. Ralph was instrumental in convincing the Board to proceed with the proposed business arrangement, recognising that it would be better to be working with, rather than competing against Ayman and Maroun. Petrofac International was capitalised at US$1 million, funded equally between the US business and AMcorp. The management team realised that no further funds would be forthcoming so it was imperative to build strong foundations for the business quickly. In the early weeks and months efforts were focused entirely on business development. Early breakthroughs came in the form of some relatively small contracts (circa US$ 6 - 7 million) in Syria and Azerbaijan. With very few people to execute these contracts, it was a true test of the fledgling business capability and the teams determination. Further challenges were ahead however, with the companys funds dwindling rapidly, the business needed to secure larger contracts and it needed more staff. A breakthrough came in late 1991 when Petrofac was invited to pre-qualify for the North Oman Crude Stabilisation (NOCS) project for Petroleum Development Oman (PDO). There was a problem, however, as Petrofac International did not have the financial muscle to take on, what was at the time, a massive US$60 million project. Undeterred the team turned to Galfar, one of Omans leading construction companies, and formed a joint venture. Galfar brought the necessary financial strength and the JV was prequalified and invited to bid for the project.
Maroun Semaan
Lou Owen
Joined Petrofac: 1 September 1991 First position: Vice president, operations and Board member Current position: Chief operating officer and Board director Proudest moment: There have been many events of which I am immensely proud. Each was at the time, and continues to remain, significant to me as we take the business forward. Our four EPC project wins in 1992 allowed us to kick start the company and this was a fantastic and challenging period for the whole team with a continual succession of projects thereafter. At a personal level, my proudest moments are being able to play a part in and share the achievements of my fellow Petrofac colleagues and of course my own family. Toughest challenge: The constant challenge of remaining competitive, growing an enduring business and building a solid reputation was a big challenge on day one of Petrofacs journey and will always continue to be so. It is that challenge that makes it exciting for me to get out of bed every day and work with our teams to ensure we remain successful. Which one word or phrase would you use to sum-up Petrofacs journey from then to now?: A journey of excitement, passion and hard work and a voyage of many new beginnings. Although clearly delighted with this progress, the team now had another problem people or rather the lack of them. In anticipation of winning the contract Asfari and Semaan headed to India in search of engineering talent. It was not difficult to find excellent engineers or to persuade them to join Petrofac, recalls Asfari what was difficult was the considerable red tape around processing work permits and visas for them to come and work in the US. In the end I think we hired around 20 engineers and many of them are still with us today in senior roles. Gordon McLeod worked on the NOCS bid: We submitted an alternate design based on an idea that Ralph and I had discussed during the prequal stage, which was to substitute liquid ring vacuum compressors for the centrifugal machines called for in PDOs specification. The alternative saved a considerable amount of money as well as circumventing a significant technical difficulty. Ultimately PDO accepted our alternate proposal and the Petrofac/Galfar team was awarded the project in April 1992.
Joined Petrofac: 1 January 1982 First position: Vice president engineering Final position: Senior vice president/President Petrofac Inc Proudest moment: Formation of Petrofac International. I always felt it was going to be a positive development. Toughest challenge: The early days were challenging as we never knew if we were going to be able to pay the bills or not but selling the US business was the toughest decision. Which one word or phrase would you use to sum-up Petrofacs journey from then to now?: Absolutely great! It was just fun all the way!
Those first ten years very much represented laying the foundations of Petrofac: systems, procedures and the painstaking process of establishing the different departments, country offices and partnerships.
Maroun Semaan, Chief operating officer
So the stage was set, the company was expanding and had its first major project secured. Semaan, having initially been based in Tyler, relocated to the now established Sharjah office in order to start to realise the companys vision. We had the determination to pursue, win and execute large lump-sum projects a challenge which many contractors still avoid today! We realised from the very beginning that in order to be successful we first had to be based close to our customers. Secondly, we had to establish and grow a multinational and cost efficient organisation of the highest calibre that could execute and manage the risks associated with EPC contracts. The Sharjah journey really gathered momentum when we were joined in those early formative days by members of team who are still with us today: Rajesh Verma, Marwan Chedid, Murugan Pitchai, Mark Thomas, Jean Chidiac, Rohit Beri, RG Gopal and indeed many others, too numerous to mention here but certainly not overlooked, who created the bedrock for the business. Those first ten years very much represented laying the foundations of Petrofac: systems, procedures and the painstaking process of establishing the different departments, country offices and partnerships. Throughout this the company continued to grow. It secured and successfully executed numerous projects and in the late 1990s the group was joined by Amjad Bseisu to set up the Resources division (now Energy Developments). The vision was to align Petrofac more closely with its customers through the provision of capital investment in upstream and infrastructure projects for which Petrofac was also deploying its service capability. continued overleaf >
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Company timeline
1981
Petrofac Inc, Tyler, Texas 25 members of staff
1991
Ayman Asfari and Maroun Semaan join and found Petrofac International. Capitalised as US$1 million
1992
Awarded the NOCS project, valued at US$60 million
1997
Amjad Bseisu joins to set up Resources division (now Energy Developments)
2000
Awarded the Ohanet project, valued at US$1 billion
2002
Petrofac undergoes a corporate reorganisation
2003
US business is sold
> continued from overleaf The first realisation of this strategy came in 2000 when the group entered an agreement with Algerias Sonatrach and BHP Billiton to provide EPC capability for the US$1 billion Ohanet project in the country while also deploying capital for a 10% investment in the development. Ohanet took 39 months to complete and was the largest contract Petrofac had undertaken at that time. By becoming a partner and aligning itself through the deployment of capital Petrofac was able to assist in the challenges the joint venture faced. The project was an outstanding success and the signing of the Ohanet contract and its significance for the group is something that stands out as a milestone event for many of the founders. In January 2002, Asfari led a corporate reorganisation through which Petrofac Limited became the parent company for the group. In May 2002 Petrofac raised US$40.25 million of longterm capital from 3i Group plc giving them a 13% interest in the Company. Martin became chairman and Asfari the chief executive of the new group which had around 900 staff. Within this new structure the team set about growing the already successful EPC and coinvestment businesses through both acquisition and organic development. In early 2001 Mike Stacey joined to establish full field facilities development and front end engineering design capability through the creation of the engineering business in Woking. Stacey went on to serve as the groups vice chairman until his retirement from Petrofac in 2005. In December 2002 Petrofac entered the UK North Sea market through the acquisition of PGS Production to provide facilities management, operations and maintenance services. This was led by current group director for strategy and corporate development, Rob Pinchbeck, who had just joined that year and was instrumental in the development and growth of the UK North Sea business. In the same year, Keith Roberts joined as group CFO and was instrumental in the creation of internal processes that would enable Petrofac to continue to grow and develop and ultimately fulfil its potential to become a public company. The new group was developing its capability and entering new markets, but in contrast the US business was struggling to adapt its business model in order to keep pace with the changing market landscape. As Asfari recalls: When we realised that the US business was not going to continue to succeed as part of our group, the decision to sell it to Chicago Bridge & Iron company was the hardest I have ever had to make. I didnt want to sell the US business, it was where our journey had started, but it was clear it was the right thing to do if we were to take the maximum advantage of the opportunities that were presenting themselves in international markets. The sale was completed in 2003 and many of the US shareholders chose to sell their stock back to Petrofac at that time; a decision many say they now regret.
2005
The group admitted to the Official List of the London Stock Exchange with market capitalisation of around US$1.3 billion
2008
The group enters the FTSE 100
2010
Completes demerger of UKCS oil & gas assets to EnQuest PLC
2011
Petrofacs market capitalisation more than US$8 billion. The group has some 13,000 staff working in around 25 countries worldwide
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It would be easy to feel satisfied with what we have achieved and to simply coast along, but I believe that complacency, above all things, is the quickest path to failure.
Ayman Asfari, Group chief executive
Greg Hendrickson
Joined Petrofac: February 1981 First position: Corporate secretary/treasurer Final position: Senior vice president and chief financial officer of Petrofac Inc Proudest moment: There was no single moment but providing a livelihood for employees and their families while improving opportunities and operations for our customers was always an inspiring feeling. Toughest challenge: Always keeping enough work on the horizon to avoid having to lay off employees that were doing a good job. It is never difficult to fire an under performer, but it is a bad feeling to have to lay off a hard working, dedicated employee because you cannot gain enough contracts to keep them employed. Which one word or phrase would you use to sum-up Petrofacs journey from then to now?: Proud
During 2004, Petrofac created its training capability through the acquisition of leading international training provider RGIT Montrose, reflecting the importance the group placed on being able to provide safe and competent personnel for the oil & gas facilities it was building and operating around the globe. Since the beginning of the decade the group had focused on expanding its portfolio and capabilities and had an extremely robust business model when it came out of private ownership. In October 2005, following a successful Initial Public Offering (IPO), the group was admitted to the Official List of the London Stock Exchange with a market capitalisation of around US$1.3 billion. 3i, having invested in the business during the 2002 re-organisation, exited at the time of the IPO. Petrofacs IPO was a major achievement in the groups history. For the first time there was an independent validation of the business and its future prospects, along with exposure to a new and wide-ranging set of stakeholders. When asked about the significance of the IPO Asfari has one thought to share: It was gratifying and something of a relief to prove to the team the shares they had in the group were not just worthless bits of paper and the share price in the public market was evidence of their real value. For many years, I had been telling them this would be the case, but Im not sure they believed me! One person who had complete faith in Petrofac and its leadership was Lou Owen. In 2003, when the US business was sold, he made the decision to retain his shares in Petrofac. As Owen recalls: I never even thought about selling. Ayman and I had talked about his plans and I had always believed him to be a far-sighted and visionary individual with the ability to make things
happen, and you could not get anyone better than Maroun at running an engineering & construction company. Petrofac was in safe hands and I was confident that they would either sell or float the business; it didnt seem like much of a gamble to wait. I have been extremely fortunate as a result and my wife Peaches and I have donated more than US$40 million to local causes and charities here in Tyler. We set up the Owen Family Foundation which still donates around US$800,000 each year from the earnings gained on Petrofac stock. In April 2010 Petrofac completed the demerger of its UK Continental Shelf (UKCS) oil & gas assets to EnQuest PLC where they were combined with the UKCS assets of Lundin Petroleum AB in a separately listed entity. This crystallised a significant gain for Petrofac and enabled all existing shareholders in the group to also become shareholders in an E&P company which has since gone on to increase in value as a public company. Having joined in 1997 to establish Energy Developments within Petrofac Amjad Bseisu left Petrofac following the demerger to lead EnQuest PLC as chief executive officer. At the end of January 2011, as we go to print, Petrofac is entering its fourth year as a constituent of the FTSE100 Index with market capitalisation of more than US$8 billion. The group has experienced significant organic growth and now has some 13,000 staff working in around 25 countries worldwide. 2010 closed with record backlog having signed our largest ever contract with Turkmenistans state-owned national gas company, Turkmengas, worth US$3.4 billion. continued overleaf >
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> continued from overleaf So what do Ayman Asfari and Maroun Semaan think of this company they built 20 years on and what does the future now hold for Petrofac? Ensuring we have an enduring and efficient business with clear targets and objectives which are well understood by our management without diluting the prevailing entrepreneurial culture will be critical to success, says Semaan. Back in 1991 the board had a consistent vision for continued growth and success underpinned by our passion and commitment to delivery for our customers and to attract the best talent on board, a vision that we continue to live by today. The entire energy sector is constantly evolving and we have to take considered, strategic measures to ensure we can change with it, remain innovative in our approach - technically and commercially and instil the same set of values as new people continually join our organisation. At a personal level, I am extremely passionate about what we do but I am certainly not alone in that. There is a high degree of commitment, loyalty and dedication running through our business which is very powerful and, as we grow, we need to ensure that remains as alive in 30 years time as it was in 1981, 1991 and today. Looking back at the journey and with hindsight, most of us would do many things differently, however, I relish my lifes journey and have soaked up every experience along the way. Asfari concludes with his thoughts on the journey so far and the next instalment: The hard work and dedication of many exceptional people combined with some good fortune has brought us to this point, and we can all
Gordon McLeod
be very proud of what we have achieved. It hasnt always been easy and we have had to make some tough decisions along the way, but every decision has been made in the best interests of the group and its future sustainability and success. I would like to take this opportunity to extend my personal thanks to those colleagues who have supported me on this journey so far. Firstly, to the Board of Petrofac Inc for their belief and especially to Ralph and Lou, my mentors and dear friends. Id especially like to thank Maroun for sharing this journey with me; it has been a fantastic experience to work alongside someone for so long and to have achieved so much together. To Amjad, who made a significant contribution to our group and is now a very important customer for Petrofac! To Keith Roberts and Rob Pinchbeck, who both joined Petrofac in 2002 and I am grateful for their support and contribution. Keith has been instrumental in creating process and structure within our business as we have grown and also led the execution of the IPO transaction very successfully in 2005, while Rob led the acquisition of PGS production in 2002 establishing and building our offshore business in the North Sea. Our group director for legal and commercial affairs, Richard Milne, joined us in 2004 and has been instrumental in creating our governance and compliance framework. Id like to thank each of the business unit managing directors: Marwan Chedid, Rajesh Verma, Subramanian Sarma, Rob Jewkes, Gordon East, Bill Dunnett and Paul Groves. Some have been with us for almost 20 years and some have joined the group more recently, but their individual contribution is both recognised and appreciated. This is not an exhaustive list and so many more people have contributed to Petrofacs success and I do thank you all most sincerely. Finally, I would like to recognise the guiding role of our Board and the contribution of our non-executive directors. They have supported the executive team at every stage of Petrofacs development. I would especially like to thank Rodney for leading our Board as chairman for the last six years and for his own valuable contribution. It would be easy to feel satisfied with what we have achieved and to simply coast along, but I believe that complacency, above all things, is the quickest path to failure. The Petrofac of 2041 will look very different to the Petrofac of today, of that I am certain. So, the next steps in our journey will be to continually evolve and develop our capability, our commercial structures and to stay at pace with the market and the changing demands of our customers. I am as committed to Petrofac today as I was in 1991. Im looking forward to participating in this next chapter of our history and am very excited by the inevitable challenges it will bring.
Joined Petrofac: I first joined Petrofac on 1 December 1982. I left in April 2003 and rejoined full time in September 2010. First position: Instrument and electrical engineer Current position: Vice president, Americas Proudest moment: Being selected to serve as vice president Engineering in the newly formed Petrofac International in 1991. Toughest challenge: Serving simultaneously as vice president engineering and director of Petrofac International and as project director of the North Oman Crude Stabilisation Project, Petrofac Internationals first major EPC project. Which one word or phrase would you use to sum-up Petrofacs journey from then to now?: Vision
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infrastruCture uPDate
Name Mohan Narasimhan Title Group chief information officer Location Sharjah
Petrofacts caught up with the teams in KL, where the system has been embedded now for more than two months to find out how it has been working for them
Faisal Razak: The system now has all of our projects data in one place for the first time. It is very powerful, but it will take a while for us to understand how best to extract the data. Zahari Jasmani: Switching to the new system was harder than we expected. However, its in now and we are ready to support all existing and any new projects in Malaysia. Fariz Ikshan: Transaction entry is very structured so now all of the upfront approval prevents problems later.
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business foCus
Supported by the Engineering & Construction business, Petrofac OE&O will develop the 500 million standard cubic feet per day gas processing plant on behalf of Total. The project comprises engineering and procurement (on a lump-sum basis) and supply, construction, commissioning and start-up (on a combined lump-sum and reimbursable basis). The plant will facilitate the transportation of gas from the Laggan and Tormore fields, which lie 125km North-West of the Shetland Islands, to the Total operated St Fergus Gas Terminal in Aberdeenshire. Significant milestone Maroun Semaan, Petrofacs group chief operating officer, commented: We are pleased to have been awarded this important contract with Total, a major international customer for our group. The contract, which has been secured following an extensive project definition and competitive bidding process, forms part of the strategic growth plan for the OE&O business and marks our first EPC contract in the UK. Bill Dunnett, managing director of OE&O, said: This announcement represents a very significant milestone for the OE&O business. We have mobilised an excellent project team focused upon delivering the project objectives, while ensuring we respect both the location and the environment, and to work alongside the local Shetland community. Local engagement Totals gas terminal will be developed on land adjacent to BPs existing facility at Sullom Voe. The area is one already synonymous with gas processing but the potential impact of another gas terminal in the area has not been overlooked. Total has embarked on a significant programme of consultation and engagement with the Shetland community to ensure that the operations teams from both Total and Petrofac work harmoniously within the community. These teams will form a key part of the local landscape for almost four years and Petrofac intends to maintain these high levels of engagement going forward. Protecting the environment has also been a key concern of the project and Petrofac has engaged an environmental consultant expert on the Shetland ecology to guide and support the project team throughout the build.
Alex Hosie, project director, OE&O, outlined our commitments to the local area: As a business were expert in dealing with complex projects in remote locations. We take that expertise to Shetland alongside a respect for and dedication to protecting the local community. Not only is this project expected to create more than 500 jobs in the UK, it will also utilise the Shetland-based supply chain, will bring more people to the island and ultimately increase spending in the area. We are dedicated to ensuring that the people of Shetland are positively impacted by this development and we will work with them to ensure a legacy that continues to do so beyond the completion of the project in 2014. Thinking differently A unique aspect of the project will see the team maximising the use of modularised components allowing the plant to be developed mainly offsite and therefore helping to overcome the remote location and potentially harsh weather conditions. With work having commenced in October and first gas anticipated in Q2 2014 a project team has been deployed to Sharjah to begin initial engineering works. Construction work is expected to begin later this year.
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February 2011
Country exPansion
Niger
Name Gordon East Title Managing director, Production Solutions Location London
Nigeria
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Name Graeme Jack Title VP, developments, Septa Energy Location Lagos, Nigeria
Cameroon
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Chad
Septa Energys upstream interests comprise interests in: 1. OMLs 4, 38 and 41 2. The Matsogo field in OML 56 3. The Uquo field in OML 13 4. The Stubb Creek field in OPL 276
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faCility uPgraDe
Name Richard Freund Title Document control manager, Engineering Services Location Woking
Collaboration between Petrofacs Energy Developments and Engineering Services businesses ensures FPF1 is ready for action
Petrofacts speaks to Richard Freund, document control manager for Petrofacs Engineering Services business in Woking, to find out more about this project.
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Crucially, Seven Energy shares Petrofacs approach to and focus on safety and security issues, and has taken a systematic approach to carefully selecting assets that are located in secure operating areas of the Niger Delta. How will Petrofac employees be involved in the development of these assets? As mentioned we are already mobilising a number of existing experienced engineering and project management personnel to assist with the delivery of Seven Energys key existing projects. The first of these is Graeme Jack who has been seconded into Seven Energy as VP, developments, Septa Energy*, reporting into Scott Aitken, chief executive, Septa Energy. As part of his role, Jack is responsible for delivering the pipeline and facilities projects that are currently being developed to bring the Uquo field onto production; setting up a facilities organisation that will be able to provide the necessary project and engineering support once Petrofacs input has finished; developing the necessary project management and operations processes and procedures for Septa Energy and establishing the local knowledge required for Petrofac to set up Petrofac Nigeria. Jack also provides in-country support for Petrofac and Septa Energys other Nigerian opportunities and he has been based in Lagos since early December. We are very excited about working with Seven Energy, a company with complementary skills, access, credibility and an established track record in the Nigerian oil & gas industry. This opportunity to work with a well-respected partner, while deploying some of our own people, will give us the platform to establish a local presence in Nigeria which is something we have been looking to do for a number of years.
Firstly can you tell us about the project you are working on? Im currently involved in scoping the improvements to be made to the FPF1 floating production facility. Our main focus is to ensure that the upgrade of the vessel satisfies Lloyds Register and obtains a class certificate, enabling continued operation in a UK North Sea harsh environment for a period of ten years without the need for a special survey. This involves conducting the requisite inspections, calculations and engineering to the hull and marine systems. You recently took part in a site visit to the McNulty facility in South Shields where the FPF1 is alongside dry dock tell us more about this. Unless you see such a vessel in person it is hard to conceive just exactly how big it is from simply reading documentation. The enthusiasm of the FPF1 team for the refurbishment was contagious and the scope of their knowledge impressive. It was also positive for the team in building morale and instilling a sense of pride by understanding the effect that the work we do will have in the long run. What are the biggest challenges of working on this project? Working on a project as large as this, it is essential that all relating documentation is readily available for the long-term operations of the vessel. As the hull was built in 1977, there is a substantial amount of historical documentation that needs to be verified; however after having visited the facility and getting to meet everyone, the challenges appear more manageable. I look forward to the team delivering a successful project.
*Seven Energys upstream activities in Nigeria are conducted under the name Septa Energy. For further information, please visit: www.sevenenergy.com
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Name Nigel Paton Title Deputy managing director, Engineering Services Location Sharjah
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Celebrated annually on the second Thursday in November, and promoted by the Chartered Quality Institute, World Quality Day (WQD) is a celebration of excellence. WQD provided the E&C, E&CV and ES business units with a convenient culmination point for its 2010 Integrity and Quality (IQ) activities, Alistair Gourlay, director quality assurance explains:
The build up to WQD has formed an integral part of our IQ programme of activities. The main aim was to promote our IQ message through events and activities that maximise participation across our large employee base, at the same time making these fun as well as thought provoking. Across our sites and office locations special events were held to mark WQD. A special IQ seminar was held at our Sharjah offices to take stock of our achievements throughout the year. Around 70 senior personnel from across the E&C, E&CV and ES businesses attended. Similar seminars were also held at the Chennai and Mumbai offices with a focus on improvement and sharing lessons. Our Kauther project site held a collaborative event with their customer and subcontractors, and produced a purpose made video with a strong IQ statement of commitment from the project team. At the Woking office an improvement ideas competition was launched to promote local process improvements. The Harweel project site held a lessons learned competition, and in Kuwait our local masterchefs baked a special cake to mark the day. We are delighted to share with readers a selection of our WQD action images.
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1. 2. 3. 4. 5. 6. 7. 8. 9. Kauther site Woking Saudi Arabia Prize winners for the Improvement Ideas Competition in Sharjah Mumbai Chennai Kuwait Petrofac Emirates WQD get together Cutting the WQD cake, Petrofac Emirates
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DeveloPing talent
ProJeCt uPDate
Members of the Dubai Petroleum team wished a fond farewell to Petrofac in September 2010
Petrofac Production Solutions involvement in the offshore Dubai assets started in 2005 with the innovative negotiation of the facilities management agreement which mirrored the Duty Holder contracting model pioneered and proven in the UK North Sea. The contract became effective in 2006, and the transition from ConocoPhillips, as the original operator, was completed in April 2007, when the contract became fully operational with a significantly extended scope of service now including production and well construction and management. Peter Leach, senior vice president operations and production, worked on the asset from the start of the contract as the operations manager. Leach
remarked: We are immensely proud of what we have achieved over the past five years. The challenges of working on an asset that is more than 40 years old genuinely tested Petrofacs approach to integrity and risk management to the limit. We believe we have left a very good foundation for the future success of the fields, not only in terms of consistent safety and integrity standards, but also in production performance. Petrofac continues to maintain an active role in the asset through its Offshore Engineering & Operations business unit and through the provision of the technical services agreement to the Dubai Petroleum Establishment.
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neW DeveloPMent
At the end of 2010, Petrofac announced that it had acquired a 20% interest in Gateway Gas Storage Limited (Gateway) to progress and develop the Gateway Gas Storage project in the East Irish Sea. As part of the deal, Petrofac joined Gateway as technical project operator, jointly responsible for developing the project, including determination of market demand for gas storage, ahead of the final investment decision (FID) which is expected during 2011.
Key facts A planned underground salt cavern in the East Irish Sea, approximately 25km offshore the UK At completion, working capacity of 1.512 billion standard cubic meters, adding nearly 30% to the current gas storage capacity in the UK market
Petrofacts talks to Ed Bassett, business development manager, Petrofac Energy Developments to find out more about this exciting opportunity, what makes gas storage an attractive investment option and why Petrofac is best placed to develop the project.
What makes gas storage an attractive market for Petrofac? Salt cavern gas storage is proven onshore in the UK, although there are clearly different challenges developing offshore facilities. Gas storage in the UK is currently lower than European levels; the UK has around 4% of annual gas demand in capacity, compared to around 15-20% in Europe. As UK domestic gas production falls, and the market becomes more reliant on imports from distant sources, the need for flexible, high deliverability gas storage capacity is increasing. Currently gas pricing is reflecting a balanced market but we believe that over the medium-term this is likely to change. The UKCS continues to be a focus area for Petrofacs future growth across the energy chain, as demonstrated by the recent award to develop a gas processing plant on the Shetland Island and the carbon capture project between our CO2Deepstore business and Shell. We continue to seek UK Continental Shelf upstream opportunities, following the successful Don development and harvest, and we also want to establish a portfolio of energy infrastructure projects; as embodied in our floating production
activities, and now this gas storage project. Through these projects we intend to position the company in this mature oil & gas province for the next 20 years and beyond. What stage is the project currently at? Work is currently underway to finalise the FEED phase of the project. Once this is finished, Petrofac will take on the responsibility of technically progressing the development through to FID. This involves a review of the FEED with an eye on the most efficient engineering and procurement strategy, preparing the project, via a dataroom process for additional equity investments and finalising the execution strategy postFID. Subject to attracting further strategic investors in gas storage into the project and reaching FID, Gateway is looking to move towards construction in late 2011/early 2012. Why do you think Petrofac is well placed to take on the role of technical project operator of the Gateway project? The project involves the offshore drilling of gas injection and withdrawal wells into salt caverns and the installation of central processing hubs, offshore pipelines, and onshore gas processing. Petrofacs experience in large scale project developments and its project engineering, procurement and construction track record will provide a robust background to developing this project to FID through owners eyes.
business iMProveMent
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February 2011
PeoPle
Andy shares our vision as to how the provision of integrated services to resource holders can create significant growth for Petrofac.
Ayman Asfari, Group chief executive
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PeoPle
I would like to thank Rodney for leading the Board so effectively for the last six years. We now look forward to working with Norman and Roxanne to take Petrofac through its next stage of development.
Ayman Asfari, Group chief executive
Rodney Chase
Norman Murray
Roxanne Decyk
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February 2011
Country foCus
Name Jim Burton Title Project director, In Salah Gas Location Sharjah
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supporting algerian nationalisation with the opening of a new construction skills training centre
Petrofac Training Services (PTS) success is built on the ability to anticipate and meet the needs of customers globally. The most recent demonstration of this is PTS diversification into construction skills training with the opening of the Hassi Messaoud Constructions Skills Training Centre in Algeria. The facility and programmes on offer PTS, on behalf Petrofac Engineering & Construction (E&C), has converted an unused storage warehouse and fabrication workshop into a new construction skills training centre. The new training facility, which comprises two 875m2 existing buildings and a new 500m2 building, offers high quality technical construction training and contains technical classrooms, offices, workshops, changing facilities and dining and recreational areas. The training centre offers programmes in mechanical, electrical, instrumentation, pipe fitting/fabrication and welding and can facilitate the training of 75 trainees every three months. The programmes which are 70% practical skills training and 30% theory are taught in French. The training (which will be delivered with health, safety and environment as the underpinning competence throughout each training programme) will enhance the trainees ability to develop careers within their communities as part of the Algerian nationalisation programme. Fifteen Algerian trainees commenced the instrumentation training programme on 22 December with more trainees due to start the other training programmes on offer shortly. Training certificates will be awarded upon successful programme completion with each programme typically lasting three months. Centre management PTS has assigned an experienced project team to work alongside E&C personnel. The centre is jointly managed by an experienced PTS training manager and an E&C training centre manager to ensure the smooth delivery of all training programmes. Algerian trainee instructors will shadow experienced PTS instructors for a limited period while they acquire the necessary skills and knowledge to perform the instructor roles independently. Developing and measuring competence Throughout the programme, trainees will complete training and development activities designed to build competencies to acceptable levels. The training centre has training equipment which offers identical situations as encountered on-the-job. This ensures that a competence-measuring component is incorporated throughout the training programme thus further enhancing the value of the trainees as they join or re-enter the workforce on completion of their programme of study. On programme completion, the trainees will have the opportunity to seek employment relevant to their newly acquired skill set either within Petrofac or a company of their choosing.
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hsseia
Awareness raising
In conjunction with our objective to raise awareness of environmental issues, a series of lunchtime lectures were held including a talk on renewable energy hosted by Martin Barnes, managing director of TNEI, Petrofacs recent acquisition, and a lecture by Antartic explorer, Robert Swan - the first man to walk both the North and South poles. The Petrofac Emirates team in Abu Dhabi tackled the issue of excess waste head-on by eliminating the use of plastic cups in the office (substituting them with mugs and cups) and in our Mumbai office emails were distributed covering topics such as conserving water, energy usage, green house effect, wild-life extinction and solar energy. Our colleagues in Saudi Arabia increased their recycling efforts, held informative lectures and reduced the use of plastics by replacing plastic cups with mugs and glasses.
Clean-up
Across the group, employees helped to the keep their neighbourhoods clean. More than 300 participants took part in the beach clean-upin Sharjah, including a team of qualified divers who cleaned-up the ocean bed. Petrofac IKPT employees in Jakarta planted trees into pots and tidied up the environment around their office.
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This years environment month culminated in the judging of our second group art competition for children. Congratulations go to the winning entrants - Madina Yuldasheva (5) from Kyrgyzstan, Sriparno Majumdar (10) from Sharjah, and Pooja Krishnakumar (15) from Sharjah. Chris Allen, group director of HSSEIA commented: Well done to all those who participated; choosing the winners was not easy and the efforts and imagination involved were impressive! The winning competition artwork and runner up drawings from Jakarta, Chennai, Mumbai and Abu Dhabi can be viewed by employees on our intranet site, PetroNet, along with further details on the many activities that took place across the business. Allen continued: Petrofac understands the importance of giving proper consideration to protecting the environment for future generations. We are committed to conducting operations which minimise environmental impact. The actions of our teams throughout the month and in the future help to support our vision. Thank you and congratulations on a great effort to those of you who participated in the Environment Month campaign.
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ProJeCt foCus
Brad Sinex, general manager for Petrofacs operations in Tunisia commented: Both of these achievements highlight the attention to detail, hard work and dedication of the whole Chergui project team. We must now focus on maintaining these very high standards we have set for ourselves as we move into the next phase of the Chergui development. There was cause for further celebration for the project team when the British Ambassador to Tunisia visited Kerkennah Islands and the Chergui Central Processing Facility (CPF) in October. His Excellency was given a tour of the CPF and then visited various corporate social responsibility projects that Petrofac is delivering, largely centred on the island of Kerkennah where 40% of the Petrofac employees live. Mindful of our responsibilities to the communities in which we operate, we have worked hard to overcome some
of the initial challenges we faced and have developed some really positive relationships, commented Sinex. The team has been pro-active in supporting many local initiatives in the vicinity, including sponsorship of local cultural events, providing support to the Kellabrim Handicapped School in Ramla, and loaning out Petrofac minibuses to the community for use at local sporting events. The team also organises a series of regular visits for local primary school children to the CPF. This programme gives an early introduction to our industry and highlights the importance of safety and protection of the environment.
At the time of going to print, the unrest in Tunisia has stabilised. All Petrofac personnel are accounted for and remain safe. Operations and management support have returned to normal working cycles however we have maintained a very strict journey management procedure for all travel to and within the country.
DeveloPing talent
eMPloyee Donation
On 28 November representatives from Petrofac Emirates attended the signing of a memorandum of understanding between the Higher Colleges of Technology (HCT) Foundation and the Tony Blair Faith Foundation which aims to provide partnership opportunities for the corporate sector, fulfilling the HCTs mission to develop UAE national youth for effective nation building. A commemorative plaque was presented to Khaled Al-Hosani human resources manager for Petrofac Emirates, by His Excellency Sheikh Al Nahyan and former Prime Minster of the United Kingdom Tony Blair for Petrofacs recognition and support.
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ProDuCt launCh
SPD update
WellAtlas
Name Mark Gillard Title Product development manager, SPD Location Aberdeen
SPD, Petrofacs well construction business, recently launched its latest product: WellAtlas. WellAtlas is an integrated project management and documentation system that enhances the quality and consistency of SPDs current product lines (Well Engineering Services and Project Management Services). Petrofacts speaks to Mark Gillard, product development manager, SPD, to find out more about this exciting new product.
The web-based application is designed to improve consistency, quality and auditability of the planning and execution of projects by providing a logical process for lifecycle planning, coupled with links to policies and procedures, external references, guidelines, toolboxes and best practices. It also provides a clear indication of project progress and timeline related to events during the project lifecycle. WellAtlas combines four standalone modules into one integrated package: Well Engineering Management System A searchable and indexed hierarchical documentation module that comprises policies, standards, guidelines and best practices which can be viewed as individual documents linked to the various stages of the project delivery process for ease of reference. Well Management Process The Well Management Process module provides managers with an overview of the status of each project (both task and timeline based), and provides engineers with a logical way to progress from the initial feasibility stages of the project through to execution and wrapup. In excess of 500 individual workflows, guidelines and checklists are provided with a comprehensive set of templates and documents, with an auditable trail of revisions, ensuring that consistency and quality are key components of the project. LessonsAtlas The LessonsAtlas module provides an indexed and searchable lessons learned database. It allows the user to interrogate lessons learned from previous projects thus ensuring improvements are incorporated into current planning. Action Tracker In order to enhance accountability and ensure timely completion, WellAtlas offers a module that enables the user and manager to monitor and track actions generated during the lifecycle of a project.
Project Status
WellAtlas is already in use internally, underpinning SPDs Well Construction programme for 2011 and is currently being evaluated by several operators for future use. For more information about the WellAtlas system, its capabilities and access, please contact us at sales@wellatlas.com
LessonsAtlas
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One of these competency standards recently received an A rating from Edexcel, an international accreditation body. As the UKs largest awarding body, Edexcel offers academic and vocational qualifications and testing to schools, colleges, employers and other places of learning in the UK and internationally. PTS was awarded the A rating in the quality assessment of its Business and Technical Education Council (BTEC) programme. Assessors observed all elements of the BTEC qualification regarding it as first class relevant mix of practical and theoretical assessment opportunities. BTEC qualifications are developed with key industry representatives and sector skills councils offering a practical, real world approach to learning without sacrificing any of the essential subject theory the aim of the Chemical Processing Technology Centre (CPTC) in Singapore. PTS CPTC continually demonstrates the value of the BTEC programme for its key customers in the Asia Pacific region. In addition, PTS also works in close partnership with the Economic Development Board (EDB) and the Singapore Workforce Development Agency (WDA) in developing the Singapore Workforce Skills Qualification (WSQ) for process technology in the chemical sector. The standard has been successfully launched
in Singapore and is providing both local and international customers with a benchmark that has a true value and recognised currency. The WSQ programmes have helped meet growing labour demand within Singapore by creating a skill pool of competent and job ready technicians to support the petrochemical and related industries. Companies have also taken up the WSQ programmes to upgrade and refresh the competencies of their existing workforce in order to improve productivity. A successful partnership has been forged between the Singapore EDB, the Singapore WDA, Shell Eastern Petroleum and PTS CPTC to develop and deliver the training and assessment for Shell Eastern Petroleums Graduate Training Programme (GTP). The GTP is aimed towards developing and enhancing the competencies of Shell Eastern Petroleums new hires, fast tracking work readiness. Working closely with Brunei Shell Petroluem Co Sdn Bhd (BSP), one of the biggest energy companies in Asia, PTS is co-creating a BTEC programme for BSPs control room operators (CROs). The jointly developed CRO programme has been designed to establish and maintain a resource pool together with trainers and verifiers. In addition to developing individual competence and organisational capability, the BTEC module allows for improved understanding and tracking of the necessary CRO competencies.
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ProJeCt uPDate
During the three-month transition period, the following activities were completed:
full transition of oilfield operations involving more than 300 active wells located within a 100 km area, 20 workover and well intervention rigs, 10 oil, water and gas separation facilities, two gas compressors stations, 10 steam boiler units, degasolination and gas dehydration plants, heavy transportation equipment and workshops, yards and office facilities a unionised workforce of 920 personnel was transferred under the provisions of TUPE legislation from Petrom to Petrofac more than 12,000 fixed assets were inventoried, surveyed and categorised more than 200 supply and service contracts were novated or renewed all licenses and permits necessary for a major service company to operate in Romania were obtained a fully functional SAP system, providing an enterprise risk planning function, was implemented
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DeveloPing talent
This highly successful employability campaign aims to turn work experience into Work Inspiration encouraging employers to help young people bridge the gap between the classroom and the world of work. It is widely believed that by 2020 there will be three million fewer low skilled jobs in Britain than there are today, and more than 40% of all jobs will require a graduate level qualification. The campaign was launched in response to this belief and addresses the social need to provide young people with a clearer picture of work, equipping them to make decisions about their future career paths and therefore increase their employability.
As a result of the visit, Petrofac hopes to sign up to the campaign to help further improve our work experience programmes
Pinchbeck met students at Haggerston School and Haringay VI Form Centre and heard firsthand about their internship experiences. Following his visit Pinchbeck commented: Education and training is core to Petrofacs CSR policy and we should therefore be delivering internship experiences of the highest quality and value. This trip was very thought-provoking and has sparked ideas which we will endeavour to utilise and apply within Petrofac. Petrofac has been a member of BITC for several years. Its main function is to advise and support its 850 members to improve their corporate social responsibiltiy credentials by offering advice and programmes tailored to meet their needs. Seeing is Believing is one of its flagship programmes, designed to showcase and increase the positive impact which business can make in the community. Gwen Folland, head of CSR said: Robin is not the first of our senior managers from Petrofac to participate in the Seeing is Believing programme and we hope that we can encourage others to follow suit. It is an excellent programme inspiring and engaging the UKs top business leaders on key social responsibility issues. Several Seeing is Believing visits take place throughout the year with around ten delegates on each visit. All participants report back to HRH The Prince of Wales at a seminar at the end of the programme year.
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February 2011
business foCus
PeoPle
Petrofac Offshore Engineering & Operations (OE&O) recently mobilised seven new trainee operators to four Duty Holder assets in the North Sea. The new recruits and former Clyde Marine cadets have undergone a five-week bespoke training course, delivered by Petrofac Training Services, to prepare for their new offshore roles. Clyde Marine offers a range of marine and offshore personnel services and wasoriginally established to recruit sea-going personnel for Glasgow based ship management companies. Since 2006 Petrofac has successfully recruited and trained 37 Clyde Marine cadets into its OE&O business unit. Andrew Ferguson, director, marine operations, commented: We are pleased to have the opportunity to strengthen our relationship with Clyde Marine and are looking forward to working with the new recruits to expand their transferrable skills and help them to develop into confident operators.
From left to right: Shouab Zahid, director, sales & marketing, Petrofac Emirates; Peter Warner, chief executive officer, Petrofac Emirates; Zaher Abdulla Ghanem, VP asset management and operations, Mubadala Petroleum Services Company; Khaled Al Hosani, HR manager, Petrofac Emirates; Abdul Nasser Al Muflehi, senior business development executive, Petrofac Emirates and Mazin Rachid Nasser Al-Lamki, manager, asset management and operations
Left to right: Andrew Guy, Pauline Robertson - HR advisor, Andrew Ferguson director, marine operations, OE&O, Matthew Lloyd, Ross Craven, Steven Balcarras, Craig More, Calum Taig, Drew Johnston and Gordon Andrew - technical trainer
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neWs in brief
Petrofac wins six-a-side cricket tournament in Kuwait A Petrofac team was crowned champions at a cricket competition organised by Kuwait Oil Companys cricket committee in Kuwait recently, beating construction company Kharafi National in the exciting final. The win came as a result of great teamwork from start to finish, with exceptional efforts from G. S. P. Ramaraju and Midhun Varma who are now helping to set up an official Petrofac cricket team in Kuwait.
Petrofac had a prominent presence at one of the largest oil & gas exhibitions in the Middle East this year, ADIPEC 2010. The four-day international event which was held under the patronage of H.H. Sheikh Khalifa Bin Zayed AL Nahyan, President of the UAE, was attended by 1,500 exhibitors and more than 45,000 visitors.
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ADIPEC 2010
In November 2010, Petrofac Training Services (PTS) held a grand opening event in Houston to launch the operation of a second, state-of-the-art Major Emergency Management (MEM) training simulation suite at its Houston Training Centre. Existing and prospective customers attended the event to learn more about the MEM training course, which provides delegates with knowledge and hands-on experience in emergency management, as well as take part in demonstrations and scenario-based exercises led by David Potts, senior MEM instructor. Attendees experienced firsthand how the IT and audio-visual capabilities of the suite are used to replicate the same sights, sounds and stresses experienced during an emergency. Tony Littler, regional manager, PTS Americas, said: For almost 20 years, Petrofac has delivered fit-for-purpose, competence-led MEM courses to help meet the safety and emergency response training needs of the oil & gas industry. We are committed to maintaining this level of service and meeting the increased demand of our customers in the U.S. by expanding our capability and opening a second simulation suite in Houston.
Petrofac has donated US$200,000 to the only childrens cancer charity in Syria called BASMA (Battling to Smile Again). The money donated will be used for a new extension to the charitys hospital unit to include additional services and increase patient numbers. BASMA differs from other charities in that it focuses on the social aspects of the disease and its impact on the family psychologically and financially. The new wing is nearing completion and is scheduled to open early this year.
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Petrofac Saudi Arabias bespoke Quality Management System (QMS) is now live on its intranet, providing employees with vital links to documents and data which support the execution of their roles in an efficient, effective and compliant manner. The quality team recently sponsored a competition to design a QMS logo for the site, the objective being to build awareness and to stimulate interest in the system. There were nearly 70 entries from which the judging panel selected one that now appears on the local intranet. The winning design was by Daniel-Brian Murteza, organisation development and CSR manager. At the award ceremony Imad Shanan, senior vice president and general manager of Saudi operations, remarked that the design clearly and immediately reflects the rapid access to the on-line functionality of our QMS. It is the framework upon which we will continually build to ensure we adhere to the highest standards of quality.
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NEW APPOINTMENTS
Pierre Tollis Group head of mergers & acquisitions (M&A) Pierre Tollis has joined Petrofac as group head of M&a, reporting to keith roberts and based in our London office. With more than ten years investment banking experience, Tollis has completed M&a transactions worth in excess of us$17 billion for companies such as snamprogetti and Vetco Gray and helped to raise more than us$8 billion of capital for companies such as Dockwise, acergy and Tecnimont. Tollis joins us from nomura international where he held the position of executive director, responsible for oilfield services coverage across Europe and the Middle East. Peter Ireton Vice president, business development Engineering Services Peter ireton has been appointed vice president, business development for Petrofac Engineering services. ireton has more than 22 years of experience in the energy industry and joins Petrofac from Wood Group Production services, where he was responsible for the Middle East, Euraisa and north africa region. ireton has a degree in chemical engineering from Bradford university.
staff aChieveMents
eMPloyee Donations
completed the challenging course whilst juggling study, work and family commitments over a four-year period. With five written exams, 24 course work assessments and more than 3,500 hours of study, the pair showed a level of commitment to be proud of. Describing the course, Thompson said: It was a great way to supplement my existing technical education and experience. I have gained a broad exposure to business and management theory, and more importantly, the opportunity to apply it in practical situations at Petrofac. Wallace commented: After moving to the Sharjah office in 2007, I became an online student and for the remainder of the course, tutorials were conducted using the Open University website. The location of my fellow students ranged from Colorado to Shanghai. Congratulations to both!
Petrofac E&Cs deputy managing director, Mr Fadi Najjar, in the presence of His Excellency, Mr Tariq Iqbal Soomro, Consul General of Pakistan in Dubai, handing their donation to Mr Khamis Mohd K Al Suwaidi , general manager of the UAE Red Crescent Sharjah branch.
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offiCes
Petrofac Limited, Ogier House, The Esplanade, St Helier, Jersey JE4 9WG Egypt Kiroseiz Building, 6th Floor, 9 Ibrahim El Sherif Street Moustafa Kamel, Alexandria, Egypt T: +203 544 5540 F: +203 544 6909 Indonesia P.T. Petrofac IKPT International, JL. Prof. Dr. Soepomo No. 42, Jakarta Selatan 12870, Indonesia T: +62 21 829 8080 F: +62 21 829 0030 Italy Sede Secondaria Italiana, Via Mola 48 (primo piano), 20156 Milan, Italy T: +39 02 89691638 / 89691689 F: +39 02 89691798 Kazakhstan Office No. 701, 7th Floor, 19th Satpayeva Street, Business Centre, Atyrau Plaza, Atyrau 060011, Kazakhstan T: +7 7122 973 500 F: +7 7122 973 501 Kuwait PO Box 9816, Block No 8, Street No 38 Building No 6, Near Fahaheel old clinic, Kuwait T: +965 2392 9024 F: +965 2392 0345 Kyrgyzstan 202, Promyshlennaya Street Jalal-Abad 715600, Kyrgyz Republic T: +996 3722 55505 F: +996 3722 52315 Malaysia Level 50, Tower 2, PETRONAS Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia T: +6 03 2382 2700 F: +6 03 2300 2241 Nigeria 289b Corporation Drive, Dolphin Estate, Ikoyi, Lagos, Nigeria T: +234 1 461 4061 F: +234 1 628 1509 Oman PO Box 2012, PC 111, Seeb, Sultanate of Oman T: +968 24484525 F: +968 24487942 Qatar PO Box 2895, Souk Al Mirgab, Salwa Road, Doha, Qatar T: +974 4411005 F: +974 4411008 Romania Litexco Stirbei Center, 104-106 Stirbei Voda Street, Sector 1, Bucharest 010119, Romania T: +40 0372 136 502 F: +40 0372 136 532 Russia 23, Novoslobodskaya Street, 123055, Moscow, Russia T: +7 495 933 78 84 F: +7 495 935 78 84 Saudi Arabia Al-Saeed Tower-2, 5th Floor, Khobar-Dammam Highway, PO Box 77378, 31952, Al-Khobar, Kingdom of Saudi Arabia T: +966 3 814 6922 F: +966 3 814 6917 Sudan Al-Tayf, Nakhil St 11, House No.220, Block 23, Khartoum, Sudan T: +24 9183 241795 F: +24 9183 241097 Syria Mazah Eastern Villas, Jade Sharjah, Al Farabi Street, Al Hamami Building No. 36, Damascus, Syria T: +963 11 6127714 F: +963 11 6125106 Tunisia Leman Center, Tour B Rue Du Lac Leman Les Berges du Lac, 1053 Tunis, Tunisia T: +216 71 964 090 F: +216 71 964 710 United States 1130 Enclave Parkway, Suite B, Houston, TX 77077-1885, USA T: +1 832 379 0500 F: +1 832 379 0502
Training centres:
Azerbaijan Garadagh Industrial Park, Salayan Highway 22km, Baku, Azerbaijan T: +994 12 545 9156/7 F: +994 12 545 9160 Russia PKT Training Services Limited, Sakhalin Technical Training Centre, Mira Ave, 6G, Yuzhno-Sakhalinsk 693000, Russia T: +742 42 505261 F: +742 42 505855 Scotland Blackness Avenue, Altens, Aberdeen AB12 3PG, United Kingdom T: +44 1224 899707 F: +44 1224 244752 North Esplanade East, Aberdeen AB11 5QD, United Kingdom T: +44 1224 899707 F: +44 1224 244752 Marine House, Blaikies Quay, Aberdeen AB11 5EZ, United Kingdom T: +44 1224 348034 F: +44 1224 348035 Forties Road Industrial Estate, Montrose DD10 9ET, United Kingdom T: +44 1674 672230 F: +44 1674 667334 Singapore Petrofac Training Pte Ltd, Chemical Process Technology Centre, 81 Jurong Island Highway, Singapore 237837 T: +65 6880 2000 F: +65 6896 7151 United States 1130 Enclave Parkway, Suite B, Houston, TX 77077-1885, USA T: +1 832 379 0500 F: +1 832 379 0502
Country offices:
Algeria Tour ABC, Pins Maritimes Mohamadia, Alger, Algeria T: +213 21 89 15 52 / +213 21 89 15 55 F: +213 21 89 15 54 China B803, Focus Center, No. 6 Futong Avenue, Wangjing Chaoyang District, 100102 Beijing, China T: +86 10 8453 9288 F: +86 10 8453 9388
INTERESTED IN A CAREER WITH PETROFAC? JOIN MORE THAN 13,000 PETROFAC PEOPLE ACROSS THE GLOBE BY REVIEWING OUR CURRENT VACANCIES AND APPLYING ONLINE AT: WWW.PETROFAC.COM/CAREERS
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We would like to say thank you to all our employees, customers, partners, suppliers and shareholders for supporting Petrofac on our journey during the last 30 years.
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