Petrofacts Oct

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Petrofacts October 2013 | 2

Petrofacts

Oct

ober2013


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Petrofacts October 2013 PetrofactsOctober 201

4 Our record of the companys news,activities, new contracts andmilestones, with an introduction fromGroup Chief Executive Ayman Asfari

8 24 hours on BerantaiA unique view of daily life onan offshore vessel

16 Farewell from a founder

Maroun Semaan talks about hisdecision to step away from Petrofac

20 Made in MumbaiThe ofce where so many of our

projects start life

22 Our island storyLocals reveal the impact which theLaggan-Tormore project has hadupon Shetland

30 The Big Picture: RumailaOne Petrofac site, captured inan image

32 The future of work

An academics view of how ourworking lives are about to change

34 The Tigers who took on El MerkThe story of the men who togetherbuilt the jewel in the desert

40 Life is really about thesecond effortMeet our new Non-ExecutiveDirector, Kathy Hogenson

42 In safe handsOld and new alike, all offshoreworkers must attend offshoresurvival training

44 I always carryA single item can sum up a personsworking life

46 Appointmen ts, achievements,appearances and some of thepersonal aspects of our lives asPetrofac people

nside this issue

ontributors Petrofacts

og

Peter Long

AcademicPeter is aProgrammeDirector at theLondon BusinessSchools Centrefor ManagementDevelopment

Andrew

Davidson

JournalistAndrew is knownfor his businessproles in The

Sunday Timesand Management

Today magazine

Rupert Wright

JournalistRupert has had a 20year career, writingfor publicationsincluding The

Times, The FinancialTimes and theWashington Post

nna Millar

urnalistna is aninburgh-basedter and travelitor for The List.e has written fore Scotsman andotland on Sunday

Ian Teh

PhotographerIans work hasbeen widelyexhibited andfeatured in Time,Newsweek and,

The IndependentMagazine

Petrofactsis publishedquarterly by Petrofac;to provide comment orcontributions [email protected] MeldrumArt DirectionEsterson Associateswith Jon KieltyPicture EditorMillie SimpsonConsultant EditorPaul [email protected]

34El Merk

Its a jewelin thedesert, and

we can all

be very

proud

22Shetlands

One of theUKs biggest

construction

projects since

the LondonOlympics

40Kathy

Hogenson

Our new

Non-ExecutiveDirector joins

us from Texas

Cover story:

24 hours on

BerantaiSee page 8

Moored 150kmoffshore Malaysia,the FPSO Berantaiprocesses gas24 hours a dayPhotograph byIan Teh

eatures

eople

305

Rumaila

Camels are acommon sight

here arriving

in the cooler

months to feed

Gulf of Mexico

On 1 July the

IES team

took overoperations for

the Arenque

contract area

20Mumbai

As part of our

ECS business,

around 800people work

in Mumbai

16MarounSemaan

When I was

growing up,

the biggestthing in

Lebanon

was its

education

8Malaysia

Gas from theFPSO Berantai

is piped back

to mainland

Malaysia


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Log

Petrofacts is for and aboutthe people working inPetrofac; its your magazine.In every story yourachievements are broughtto life, as we aim to explainwhatwe do as a companyandhowwe do it. Youllsee contributions fromcolleagues featuredthroughout. To nd out howyou can get involved sendan email to [email protected].

The year so farYoull also nd stories about

our recent successes anddevelopments in this issue.Its been a good year so far;our portfolio of activeprojects has beenprogressed and we havebuilt momentum in securingnew awards, reected in a21% increase in contractbacklog at 30 June 2013.Due to the phasing of someproject delivery, we expectto do even better in thesecond half of the year.We also have a strongbidding pipeline, so we arepositive about the future andremain on track to achievea doubling of 2010 netearnings by 2015.

I am pleased with themarkets very positiveresponse to our recentinterim results, and theresulting improvement inshare price. It shows that despite the cloud of

investor scepticism whichhas hung over the sector our differentiated strengthsof a disciplined approach,our emphasis on rst-classproject execution and abilityto build and transfer ourcapabilities between servicelines and geographies arebeing understood andappreciated by the market.A major milestone in

September was the ofcial

inauguration for Petrofacslargest EPC projectundertaken to date theUS$3.4 billion Galkynyshgas eld in Turkmenistan.

The project formerlyknown as South Yoloten celebrated successfulintroduction of gas to theeld in just 33 months;a very signicantachievement indeed.

Sadly, in August ourindustry mourned the lossof four lives as a result of theditching of a Super Puma L2helicopter off the coast of

Shetland. As you wouldexpect, helicopter safetyand operations were keytopics at the 40th OffshoreEurope Exhibition andConference in Aberdeen thisSeptember. I was visiting theCity during the Conferenceand was pleased to havethe opportunity to afrm ourcommitment to safety whentalking to staff at theopening of our second ofcein Aberdeen QuattroHouse.

The final quarterWere now entering the nalquarter of the year; a time forplanning, for setting futurebudgets and objectives.In these remaining monthsof the year, we are preparingfor two events. At the rst our leadership conference inNovember we will focus onensuring that our business is

well placed to meet ourtargets, and look furtherahead as we consider ourstrategic evolution towards2020. At the second a Capital Markets Day inDecember we will presentaspects of these plans toour investors and other keystakeholders to ensure ourfuture progression and plansare more clearly understood.Ill bring you an update on

this in the next editionof Petrofacts.

In this edition wewelcome KathleenHogenson to the Board.I am looking forward toworking with Kathy andwould like to formallywelcome her to Petrofac;you can read about herapproach to this role onpage 40.

Maroun SemaanAnd nally, it feels like weare now approaching theend of an era. Maroun

Semaan will retire from theBoard and as President ofPetrofac at the end of thisyear. He and I co-foundedPetrofac International in1991 and have spent thelast 23 years working veryclosely together to buildthis business. Maroun hasbeen instrumental in thegrowth and success ofPetrofac and will bemissed by many; but Iknow I am going to misshim most of all.

In planning for hisretirement, Maroun hasmanaged an effectivetransition process; heleaves the business withthe knowledge that it is ingreat shape for the future.Find out what Maroun hadto say to Andrew Davidsonon page 16.

I hope you enjoy thisnew-look issue of

Petrofacts, please do giveus your feedback viaPetroNet.

Welcome to ournew-look Petrofacts.

t still has the samegreat name, but our

magazine is nowquite different

WELCOME

Ayman AsfariGroup Chief Executive

Oil flows at West DesaruFirst commercial oil from the

West Desaru development,located offshore PeninsularMalaysia, was achieved at2.10pm on 3 August. The WestDesaru project went from elddevelopment approval to rst

MILESTONES

oil in just over 18 months, andwhile its too early to conrmsustainable production rates,the current ow from this rstwell is performing aboveexpectations.

A Mexico milestoneOn 1 July, the IES team inMexico took over operationsfor the Arenque contract areafrom Pemex, Me xicos nationaloil company. Arenque is anoffshore eld in the Gulf ofMexico, the fourth asset to beoperated by Petrofac in Mexicoand our rst offshore. Arenqueproduces around 5,000barrels of oil per day and initialoil in place is approximately1.2 billion barrels with acurrent recovery factor of

around 11%. The handoverwent smoothly and the team isnow focused on enhancingthe existing production levels.

Turkmen team triumphA ceremony was held inTurkmenistan on 4 Septemberto inaugurate the US$3.4 billionGalkynysh gas eld project our largest EPC project todate, formerly known as South

Yoloten. Alongside ourWest Desaru development

Arenque contract area

Galkynysh gas field project

Since 2008, and theestablishment of our AbuDhabi ofce and strategic jointventure with MubadalaPetroleum, our operations inthe UAE capital have gonefrom strength to strength.

A total of six signicantengineering, procurement andconstruction projects havebeen won in that time,including three mega-projects:

ASAB full eld development;NGL4; and the Upper ZakumUZ750 eld developmentproject. As 2013 has been akey year for Petrofac in theregion, we take a look at some

Abu Dhabi statistics.For more information on

our Abu Dhabi projects whynot visit the Petrofac teamat ADIPEC between1013 November 2013

9.3bn (US$)the gross value of Abu Dhabiprojects that Petrofac has ledor been a partner in since 2009*

ABU DHABIDEVELOPMENTS

75%Petrofacs stake in PetrofacEmirates**

MalaysiaPetrofac Training Serviceshas signed a ve-yearagreement worth US$120mto operate and manage twohigh-spec upstream trainingfacilities, currently being buby Petrofac, on behalf of thenational oil companyPETRONAS.

OmanOPO secured a three-yearoperations and maintenanccontract worth US$50mfrom Oman Oil CompanyExploration and Productionto work on two new onshorfacilities in the Sultanate.

IraqWe have been awardeda second contract onGazproms Badra Oil Fielddevelopment.

Worth US$95m overthree years, the scopecovers maintenanceengineering andsupport services.

PETROFACCONTRACTSROUND UP

40bn (US$)Abu Dhabis budget for oil andgas projects 20102014

25,000number of peopleworking on the ASAB andNGL4 projects at peak

source The Oil & Gas Year, Abu Dhabi2012. *excludes any contract variationorders. **Nama Development Enterpriseshas a 25% economic interest in PetrofacEmirates following the sale of sharesby Mubadala Petroleum to Petrofacand Nama

customer, SC Turkmengas and in the presence of thePresidents of Turkmenistanand China our OEC teamcelebrated the successfulcommissioning of utilitiesand the introduction of gas

to process facilities for thesite. In just 33 months wehave provided engineering,procurement andcommissioning for thischallenging desert project.


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Log

Ayman Asfari is speakingat Oil & MoneyIntercontinental Park Lane,London. 12 October

We are exhibiting at SPEKuwait Oil & GasKuwait International Fair, Mish710 October

Imed Derouiche ispresenting at the North

Africa Oil & Gas SummitLe Palace Hotel, Tunis.2224 October

We are exhibiting at andsponsoring the AFEDAnnual EnvironmentSummit

American University of SharjahSharjah. 2829 October

We are sponsoringNOC and GovernmentsConferenceMandarin Oriental Hotel,London. 2830 October

We are exhibiting atADIPEC 2013Emirates Palace, Abu Dhabi.1013 November

Paul Groves is presentingat the OPITO Safety andCompetence ConferencePark Hyatt Hotel & Villas,

Abu Dhabi. 19 November

Andy Inglis is presentingat theOil Council:

World AssemblyOld Billingsgate, London.1820 November

We are sponsoringOil & Gas Turkmenistan

Sergi Kosgi Exhibition Palace,Ashgabat, Turkmenistan.1921 November

See us in the LeopardsRock Safari Lounge at20th Africa Oil WeekCape Town InternationalConvention Centre,Cape Town. 2529 November

We are sponsoring theBasra Oil & Gas ShowBasra International Fair GrounBasra, Iraq.58 December

Its always satisfying to reportacknowledgments for safety.In June, our team working inKuwait, on Kuwait OilCompanys (KOC) efuentwater injection phase-1 andsea water injection phase-2projects, proudly achieved10 million man-hours withouta single Lost Time Incident.

The milestone wascelebrated at the KOC ofcesin Kuwait, at an event

attended by senior dignitariesfrom the professional servicesprovider Worley ParsonsKuwait, and from the KuwaitOil Company.

This achievement followsour teams secondconsecutive Gold Awardfor the projects, in theengineering and constructionsector at the American

Society of Safety EngineersGCC HSE Excellence

Awards.

These Awards recogniseand promote leadership,excellence and exceptionalperformance in the eldof Health, Safety andEnvironment in privatesector companies in theGulf Region.

Together, these industryacknowledgments are greatachievements.

They proudlyachieved

10 million man-hours withouta single LostTime Incident

June this year, Dr Annarguson presented at thenewable UK Offshorend conference.Held in Manchester, it is annual conference with ao-day exhibition hosting 150hibitors, where discussions

The team receiving their second consecutive Gold Award

reect key industry positionson a range of issues.

Anna presented in the

session A Tight FiT: OffshoreSector, CfD and Allocationswhich looked at the UKgovernments proposals forelectricity market reform.

Annas presentationinvestigated the supportmechanisms currently beingused across Europe foroffshore and onshore wind;analysed the success ofthese; and compared themwith the governmentsproposals for contracts fordifference (CfDs).

Andy Inglis took part inSeptember in a keynotesession at Offshore Europe,a bi-annual 4 day oil and gasconference held in Aberdeen,Scotland. He highlightedthe need to increase the UKand European share of the

global export market for oiland gas services andexpertise. This included how

the industry could maximisepotential for exportingservices globally to supportnational oil companies tohelp address their capabilityshortages.

As part of this, Andy sharedrecent successful Petrofacprojects in Malaysia andMexico, demonstrating howwe export our capability,experience and technicalexpertise to train and build thecompetency of staff and todevelop supply chains locally.

SAFETYFIRSTS

PETROFAC PRESENTS

EVENTS

BUILDING BUSINESS TOGETHER

Petrofac-RNZ is a strategicengineering collaborationformed in Malaysia in 2011.

The tie-up has been workingwell; Petrofac-RNZ had growthof 29% in 2012, compared toRNZs position in 2011.

The business hasapproximately 700 employeesand is one of a only a smallnumber of companieslicensed to undertake majoroffshore engineering projectsfor PETRONAS, the nationaloil company.

The main objective ofPetrofac-RNZ is to worktogether to build a strong localpresence and enhance ourability to serve the oil and gasindustry in the Southeast

Asian market, General

Manager, Rozali Ahmadexplained to Ida Ismail.

The strong RNZ brand andtrack record in the localmarket, coupled withPetrofacs stellar internationalreputation, will help thebusiness to secure newprojects, especially in theoffshore sector.

Since the beginning of this

year the team has beenaligning internal processesand systems. Now thatscomplete, the focus hasturned to building the brandand the business.

Rozali said, We see realopportunities, as a result ofthe collaboration, to developour respective offerings.One of the key factorsbehind the link-up was ourcommitment to work jointlyon all engineering relatedwork in Malaysia and to

build a centre of engineeringexcellence in this region.

When asked about hisoutlook for next year, Rozaliis positive.

Looking at the currentmarket trends and strongpipeline of new projects, wesee real momentum for 2014.

How a tie-up in Malaysia

is proving successful

THERESA FAIR WINDBLOWING

ermany has set itself andacious goal: to generate

% of its total powernsumption throughnewable energy by 2050.d its one many critics think

eyre unlikely to achieve. with an already well-tablished onshore windctor you can see why theermans are looking offshoremake up the shortfall.is is no simple matter d thats where we come in.Weve got exactly theperience theyre looking, says Mick Bowery,siness Development

anager for Petrofac Offshoreojects & Operations. Onlys summer we picked up a

ur experience in the operation and maintenanceoffshore platforms is now leading to new

pportunities with offshore wind energy projects

new contract with SiemensEnergy worth EUR40 million.

Well be providing operationsand maintenance to twoconverter station platforms.

The new contract is for theHelWin1 and BorWin2 High

Voltage Direct Current (HVDC)platforms, which are underconstruction and will besituated near the islandsof Helgoland and Borkum.

Emma Bishop is theDelivery Manager for theproject: Were providingSiemens with a range ofservices tailored to thedemands of commissioninglarge platforms in the NorthSea providing and managing

jack-up accommodation

barges, supply ships, standbyvessels and helicopter

transfers.Were also supplying the

crews to man and maintainplatforms during thecommissioning period.It doesnt matter whether theirprevious experience is in oil,gas or wind: the workingenvironment, the challengesand the importance of safetyis exactly the same.

With each of the platformsconnecting severalsurrounding wind farms to themainland, theyll collectivelyprovide enough transmissioncapacity to supply abouttwo million Germanhouseholds with clean

power. With a population ofaround 80 million, Germany

still needs a few more to meetits target.

Says Mick: With 45% of theworlds consented offshorewind energy projects locatedin Germany, this is a growingmarket for us. Experts believethat operations andmaintenance will make up aquarter of the cost of offshorewind. Thats a greatopportunity and given thetrack-record we have, werewell placed to become theindustrys go-to provider.

Petrofac set up its ofcein Hamburg in 2012.

Offshore wind the solution for Germany?

Source: Federal Ministry of Economicsand Technology (BMWi), September 2010

r Anna Ferguson,

rincipal ConsultantPetrofacs specialist

nergy consultancy TNEI

Andy Inglis,

Chief Executive,

Integrated Energy

Services


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24 HOURSONBERANTAI

epairs areonducted to

eaking water

pe in the

ngine room

the FPSOerantai

24 hours a day, gas ows through the oatingproduction storage and ofoading vessel (FPSO)Berantai, designed and built for PETRONAS, andmoored 150km offshore Malaysia. And also roundthe clock, life and work to maintain the production

continue on its decks Photographs by Ian Teh


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|Petrofacts October 2013 PetrofactsOctober 2013

06.30TW issuance.

ach day begins

th a meeting toan preventativeaintenance

ctivities and issue

ermits to work for

e tasks that needbe done

08.00Arrival of new

crew on the vessel.

The crews generallywork a pattern oftwo weeks on, two

weeks off

10.30Housekeeping in the

cabins. These staff

will work in both thekitchen and laundry

13.00The supply barge

transfers men and

materials to andfrom the main

vessel. When

needed it also

makes the half-da

journey thereand back to the

wellhead, to which

the FPSO Beranta

is connected

by pipeline

12.00The huge, four-

storey vessel has

two control rooms;this one is in theengine room, deep

in the bowels of

the vessel


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4.00aintenance

ork at the bow

the vessel

he FPSO Berantai

the first Risk

ervice ContractSC) executed in

alaysia. It draws

pon an 18 slot

ellhead platform,

nd has a 35,000arrels per day

ude processing

apacity, with an

xport capacity150 million

andard cubic

et of gas per day.

12 30km gas

xport pipelineonnects it to

n existing gasstribution

unkline


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18.00Leisure time; the

vessel has a gym,

TV room and spacfor workers to rela

5.00ustering exercise.

here are different

vels of on-boardarms; workersust demonstrate

at when abandon

hip is sounded,

ey can don lifeckets and muster

r evacuation

thin defined

me limits

19.00A special evening

meal for Malaysia

independence day

Halal food is alway

provided on board

17.00Inside the main

control room,

crew meet todiscuss anoperational issue.

Each discipline

contributes, with

the meeting runby the offshore

installation

manager Halim

(centre)

16.00Maintenance

work on the

marine deck


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FAREWELLFROM AFOUNDER

After 23 years at the helm,

Maroun Semaan, Presidentand joint founder, is to stepaway from the company. In alook back at his life and workhe explained his departureto Andrew Davidson.Photographs by Phil Sayer

Is there a right time to go? Simply whenthe business is ready. I started thinking

about this a couple of years ago, nodsMaroun. I wanted more time for mypersonal life, but I also wanted theorganisation to be in the right shape so itwouldnt be affected by this. Now wehave good momentum, goodmanagement in place

Maroun, 57, President of Petrofac andowner of an 8% stake in the business,steps away from the rm in January, 23years after he and Ayman Asfari startedthe partnership that built one of thefastest growing oil and gas servicesgroups the world has seen. He wants, hesays, a clean break, so he can focus onhis family, his passion for education and agrowing portfolio of start-up investments.But there is a part of him that will alwaysremain behind: a clutch of hischaracteristics that are embedded in thevery DNA of Petrofac.

Maroun is anything but sentimental.Those who know him will recognise thecourteous, no-nonsense style, theattention to detail, the desireto work to a purpose.

I thought we would use this interviewto send some messages to the

organisation, he says in lieu of greeting.If we can assess the elements of ourearly success, the challenges we faced,it will help us think about what to keep inmind as we look forward.

Then, he implies, something much

more useful than a friendly farewell migbe achieved.

To appreciate the companys strengtyou must understand its roots, and hisearly experience in contracting andconstruction. To explain his own drive,you must understand his upbringing inwar-torn Lebanon, and the roleeducation played in getting him out andaway, an engineer with a yen to runhis own business, like any goodPhoenician trader.

But key to it all, he says, has been hisfriendship with Syrian-born Ayman Asfwho he rst met in Oman in 1981. Bothmen worked for rival contracting rms,but hit it off immediately, recognisingcomplementary skills that could beharnessed to greater effect.

He was three years younger than mbut denitely not short of ambition ordrive, chuckles Maroun.

While he was in a smaller company,he was always eyeing the big businessopportunities. As a strategic thinker heremains remarkable.

Maroun, working back then for theArab-owned contractor CCC, wasalways a hands-on operator, a teambuilder and detail man. He was bright,

winner of a scholarship to the AmericanUniversity of Beirut, but determined tomake his own way in business, not leasto help pay for his siblings education afamily expenses.

At construction giant CCC he learnt


10/27


challenging. I came from the mentality ofa large company, but suddenly I was

doing my own estimates and proposals,my own photocopying. The biggest worrywas to win some business.

But that thrill of building from zero,taking that risk, remains with him.Recommend it to others? I think so,so long as its done with a calculatedapproach. Lets say 70% calculated, therest is luck. But we had great partners.

Partners who Maroun and Aymaneventually bought out, making Petrofactheir own, building a base in Sharjah, lateroating the company in London in 2005.But he credits Ralph Martin with havingthe vision to see what they could do.

He believed you could start a businessin the Middle East like you could in theUS, he had lived there, he knew we wouldnd talent. Many of the early hires weresimply those they had been impressed byin their construction years. We were veryfortunate to attract some very brighttalents like Rajesh Verma, MarwanChedid, Subramanian Sarma, MuruganPitchai and many others.

Ralph was also smart in the way hemade them buy into the business. If youtake a man to the middle of the river, and

show him it is harder to go back than tocross, he keeps going.That entrepreneurial push has given

Petrofac its dynamism. But they alsoneeded luck with timing. We establishedthe business in a down cycle and could

only differentiate ourselves by beingsharp in delivery and prices. So when we

caught the up cycle in 2003, we had beengoing 12 years, we were lean and mean,had strong delivery, and could takeadvantage of it, doubling in size everytwo years.

Keeping that urgency now thecompany has 18,000 employees stillobsesses him. One thing, part of thatoriginal DNA, is our ability to criticiseourselves, to keep asking what we coulddo better. So we keep changing theorganisation. In the last decade we havedone it four or ve times, as we haveadded more sectors, more offerings.

And its good for staff, as it allows morepeople to hold higher responsibilities.

So have he and Ayman had majordisagreements along the way? No, ourrelationship has always worked well.

Ayman has done a great job in terms ofthe visibility of the company, explainingit to stakeholders, I have focused on theorganisation, and the people we haveto deal with on a weekly basis.

It has suited their styles: Ayman inLondon focusing on strategy, newcustomers and investors; Maroun inSharjah running operations and new

ventures. Maroun has a feel for politicsand relationships and is naturally themore cautious.

Sometimes it helps to be paranoidabout risk in the contracting business,he smiles. Ayman always wants to push

ahead, to ll the space when he sees one.So we come out with the right balance.

Ayman says the key is that theyrespect each others strengths. We havehad our differences, usually over risk orstrategy, but we always get to the rightsolution. And one thing about Maroun,if we make a decision and all thedecisions here are a team effort heowns it, he never comes back when thereis a problem and says, I told you so.

Did Maroun never want to be chiefexecutive? He pulls a face. No, ask

Ayman, we debated it, but Dubai is myfamilys home, moving to London is notgoing to work.

So why leave now? Because, he says,he has other commitments that need hisfocus, and to take leave of absencewould send the wrong message.I always led from the front, I put everyonein the executive team, I want 100% effort.

To then take lots of time off well, thatjust corrupts the culture.

He intends to devote more time toeducation, a passion he shares with

Ayman. He already sits on the boards oftwo universities, and supports severalschools in Lebanon. Born with six siblingsinto a Maronite Christian farming family

in the south of the country, he lived ina mixed community and witnessed theworst of the countrys civil wars andinvasion by Israel. It left its mark.

When I was growing up, thebiggest thing in Lebanon was its

education. It enabled its young to getgood careers and support the country.

Most of what supports Lebanon now ispeople working outside.

Any regrets about his time at PetrofaHe pauses. Looking back, if there wasone thing we should have done better,it was hiring young graduates from 200We only started in 2004 in a shy way. Wwere too cautious, if we had invested wwould have had the right talent comingthrough from 2006 rather than 2009.

But he acknowledges it would havebeen difcult back then, without a matuenough organisation to absorb them.Balanced against that are the memorableaps the business has made, themultibillion dollar contracts in Abu DhabOman, Algeria and Turkmenistan, themove into Britains North Sea market,the sleepless nights and anxieties overdelivery and deadlines. He has loved it But from January he will have to watchfrom outside. How hard will that be?Maroun shrugs.

Petrofac is a great organisation andhas strong management. My advice tothe younger generation is to keeppushing their management to empowethem more, but they can only do this by

proving they can deliver. And a word ofcaution: with the business we are in, yoneed to understand the trends and stayahead. Creating new opportunities bystaying close to customers andunderstanding their needs.

I went through the

ranks, always a hardhat job, you lead andmanage from the front.

We couldnt have donewhat we have donewithout this bedrock.

If you take a man to themiddle of the river, andshow him it is harder togo back than to cross,he keeps going.

ntracting from the bottom up. Theyere world-class, and the Oman team

as one of their best, delivering projectsvolving thousands of people, goodstems and procedures, antastic training ground. He worked highways and infrastructure before

oving into oil and gas construction,rtnering with Saipem, the Italiangineering group.I went through the ranks, started ase engineer, then project engineer, thenoject manager, but it was always a hardt job, you lead and manage from thent. We couldnt have done what weve done here without this bedrock.When Ayman approached him in90 about creating a new venture with

etrofac, then American-owned, he wasrigued. But it took me a year to benvinced, to see clearly what we wereout to do.Petrofacs American founder, Ralph

artin, wanted them to set up and runMiddle Eastern subsidiary, Petrofacernational, which they would jointly

wn. Why did they need Petrofac?Because in a business like this youed some track record and theowledge, they had done turnkey

PC projects in the region.So Maroun and Ayman poured theirvings into the venture. I was still youngd single and could afford to do that.ere was no looking back, you had tot every effort into it. And it was


11/27


So many of our projectsstart life on the screens

you see featured

here. In the ten years

since opening its doors

as Petrofacs firstoperating centre in

India, the Mumbai office

has grown significantly.

Part of our ECSbusiness, around 800

people now work inMumbai to provide

proposals engineering,

detailed engineering

and FEED services

for projects includingLaggan-Tormore in

Shetland, Badra in Iraq

and projects in Kuwait.

Photo by Daryl Visscher

MADEN MUMBAI


12/27


OUR ISLANDSTORY

Locals across Shetland are beneting froma massive investment in their Island. TotalE&P UKs 3.3bn Laggan-Tormore projectunder construction by Petrofac Anna Millnds out how widely the economic impactis being felt. Photographs by Phil Sayer

Ellis

NicholsonMy father

started workingin construction

in the 70s

when the BP

terminal came,

and Laggan-Tormore is

going to

consolidate our

business forthe future


13/27


the plane sweeps down intoetlands Sumburgh airport, ahthouse sits at the end of a long craggyck in the distance: a solitary welcome t oisland ripe with history and grounded

community. Nearby, Jarlshof standsoud; an archaeological site, chroniclinge Stone Age, Iron Age, Pictish, Norsed Medieval eras it hints at Shetlandsh layers. Drive north to the islandspital, Lerwick, and the wide openaces display Shetlands extraordinaryology, spanning almost three billionars. The tourists who journey to this,otlands most northerly of islands,me for the wildlife, the world-renownedabird colonies, the dramatic rockmations and often serene silence.Weaving up and through theainland, passing silvery inlets andgged cliffs, the taxi driver, a nativeetlander, speaks of a people driven to

ake the most of the opportunities bornthem and given to them, mostcently by the oil and gas industry.

ertainly, as it nds itself hosting one ofe UKs biggest construction projectsnce the London Olympics, this tight knitmmunity has revealed itself to have the

cal characters, business savvy andope to meet the challenges andportunities that lie ahead.

ays of working

he sits sipping a cold pint after a longy, Morris Morrison, son of the Andrew

mblazoned on the Andrews red busesound the island, happily admits that theost to his workload since Total

warded Petrofac the contract to develope Shetland Gas Plant, in 2010 hasen unprecedented. Having started lifea company with just one bus, Andrewsw has 17, most of which are used tonsport workers between theircommodation and the gas plant site.With Shetlands population of almost,000 being topped up with around

400 workers, Morris explains that theands mode of working has had to shift.

I get out of bed at half past four inthe morning now, and my buses arerolling out of the yard at half ve, takingworkers on the shuttle service from theiraccommodation to their work.

Morris has, he says, been impressed byhow easily the workers have slipped intothe everyday life of the place. It amazesme, you know. Workers come on tothe bus and know the drivers by name.I suppose when youre working away fromhome for long periods of time, its nice tohave something familiar, and hopefully wehelp a little with that. Everyone is open toit; no one is shutting the door.

Having heard from his father aboutthe 1970s oil boom, when BP arrivedon Shetland, Morris is no stranger tothe long-term potential. When I was atschool, I was told that Sullom Voe [the BPplant] would be shut by the year 2000,and now its got another 30 or more yearsin it. My working life could be seen outwith the oil industry, so its not just a boomfor now theres a knock-on effect.

Home from home

At the local hotels, a sense of familiaritywith their newfound guests has certainlykicked in. Marjory Barrie, RegionalManager for the Lerwick and ShetlandHotels, says she is keen, where possible,to create a home away from home forthe workers, many of whom are workingthree weeks on, one week off, and saysshe happily changes the menu and getsin special food should workers ask for it.

We understand the constraints,explains Marjory. Its never going to behome, but we try and do as much aspossible. They are up early in the morningand even though they are on the islandto work, we try to make it feel like whentheyre back at the hotels theyre notworking anymore. With an average of 25workers staying between the two hotels,Marjory says many have become wellkent faces. They get to know our staff,and we get to know some of them. Its along term picture. Well know that theyre

arjory

arrieometimes

ull seeorkers bring

eir families

p here for a

oliday on

eir days offts nice.

Morris

MorrisonI get out of be

at half past foin the mornin

now, and my

buses are

rolling out of

the yard athalf five.


14/27


way to see their son or their wife, andmetimes, on odd occasions, youll seeem bring their families up here for aliday on their days off its nice.There have been whispers of a shortagebeds for those coming to the island forurism, but Marjory is quick to dispelch rumours, laughing that because ofnortherly location, tourists tend took with plenty of notice. Besides

hich, Petrofac offers business 52 weeksthe year, unlike tourism which can onlyally hope to boom in the high season.Like Morris, Marjory is keen to talk aboute wider implications on the supply chainr the rest of the community. It gives theand buoyancy. If anything negativesaid, then its got to be in the minority.were making money, then the personling the toilet paper is making money.

And considering their long hours,arjory has been impressed with some ofe workers making the most of the localcilities, and giving back to themmunity in other ways. Some have

t involved in the local football teams,e says. The workers have a really longy, so to see them go out and playotball after that, its great.

ort in a storm

ver at the port in Lerwick, there areferent challenges, as they continue tovelop the harbours infrastructure toeet the needs and requirements of theand gas industry. Its a massive projectShetlands standards, says Sandraurenson, Chief Executive at the Lerwick

ort Authority. And the businessmmunity certainly welcomes it.Beyond the many other roles the port

ays, it is currently hosting one of theating accommodation barges, andition to the landscape that has noten shy of controversy. It has beenmmented on that the barge is notrticularly beautiful. It blocks the viewd the cruise ship lands people here, sos, there has been criticism about theual impact. But people have got used

to it now, and overall they see thebusiness opportunities for Shetlandseconomy coming in.

Meeting the expectations of the islandsmain industry, shing, and how its needs

are being managed, has needed carefulconsideration. The barges dont usedeep water, so it doesnt affect our otherprojects, she says. But normally portsdont want things that lay about and dontgo anywhere, so some nimble footworkhas been needed to get the balance right.

We predict it [the work] will be at thislevel for the next ve years, so it gives theport a longevity for everyone.

Beyond the port, Sandra hopes that tocounteract Shetlands long, mild wintersand short summers, local businesses willreinvest their additional income. Its ashort tourism season here, andoccupancy out of season is valuable it gives strength for these companies t oreinvest. I see improvement in the hotelshappening, theyre trying to up their gamea bit. Its a great boost of condence forthem taking their business forward.

Appetite for growth

Certainly for some local businesses itsproviding an opportunity to expand.

George Hepburn owns Shetland cashand carry J W Gray, while his wife Annaowns local pub, the Douglas Arms.Both have been affected by the projectsarrival, with Georges enterprise enjoying

between 12-14% more business,delivering food and drink to the barges,as well as the accommodation facility atSella Ness. With an average of two largetrucks heading out every day, he admitshes got his hands full.

The sheer volume of food leaving thewarehouse hints at the manpowerneeded to get the site ready. We hada new butcher start recently and hecouldnt believe that he was sorting a halftonne of braised steak to take up to thecamp, laughs George. Its a massiveamount of food, but numbers like thatmight only last them a couple of days.

Like the other businesses affected,George is impressed by just how muchof the business is being soaked up bylocal enterprises:

This is our kids future, he saysleaning back into his chair at his ofcesin Lerwick. If you didnt have the oilindustry, Shetland would be on its knees.When they originally built the oil terminal[in the 70s], all the foodstuff came in

from the South, not a lot was kept onthe island. Its different now and itaffects everyone.

The trucks are doing more miles, andso everyone from the guy that suppliesour fuel to the guy doing maintenance atthe garage is busier. It has a knock-oneffect right down the scale. You have acertain amount of people, who do acertain amount of overtime, and thenyou have to employ more people andwhere you can keep money in thecommunity, you do.

Already a successful business man,supplying local schools, health boards,old folks homes and pubs and clubs,

George is expanding all the time to meetthe needs at the site, and beyond newindustrial freezers, roll cages and trucks,hes recently even tried his hand atwindow washing, after discovering thatthe site needed help with their many largewindows. We got this new machine witha special lter to do it, and now thats partof a service we c an provide. Its aboutlooking at the resources we have on theisland and trying to get things doneourselves where possible.

With the plant due to be completed inthe summer of 2014, George and Annaare aware that it pays to get as much fromthe project while they can, while giving

their own bit back. Across at the pub,Anna notes that the men tend to comeearly after their shifts where possible,she believes local publicans are trying tinclude them, either by putting on earlyfootball matches on television or makina live music night start a little earlier, sothe men can enjoy it before their earlystart the next day.

Earning a livingThe Shetland Islands Council is keepina close eye on the wider impact of theproject, with hopes that there could bea real reshaping of the social fabric of thisland. Alastair Cooper, Chair of the

lastair

ooperWe always had

uite a strongconomy built

n fish and

ool, but the

l industry

as providedability

Sandra

LaurensonNormally por

dont wantthings that la

about and don

go anywhere,

so some nimb

footwork hasbeen needed

to get the

balance right

The ShetlandGas Plant

The Shetland Gas Plantis part of a major newenergy development,the 3.3 billion Laggan-Tormore project beingconstructed by Petrofacon behalf of Total E&P UK.

The project consists ofthree parts a subseadevelopment of the Lagganand Tormore gas condensatefields, located approximately125km north-west of theShetland Islands in 600mwater depth; the gas plantitself; and two majorunderwater pipeline schemes the first to transport thegas from the fieldsthemselves to Shetland, and

a second to export it on tothe St Fergus Gas Terminal inAberdeenshire for commercialsale and consumption.When the gas plant is

complete in the summer of2014 it will be capable ofprocessing up to 500m cubicfeet of gas per day.


15/27


evelopment Committee for the council,ould like to see more people moving toetland long term.The challenge that we have here isat we have a strong economy and aDP thats well above the nationalerage, but businesses do still struggleShetland. We only have 1%employment, so companies nd it

challenge to get and keep skilledorkers. We could do with more peopleng in Shetland. Alastair recognisesat alongside the shing community onetland, oil creates some much needed

ability. We always had quite a strongonomy built on sh and wool, but theindustry has provided stability, rightck from the 1970s. We thought thate last tanker would go out in 1997;w were led to believe there m ight beuntil 2040.

Certainly, with an estimated 17% of thetions remaining oil and gas reserves

cated west of Shetland, the newoject represents the future of energy

neration in the UK a point underlinedthe plants location. The site isjacent to the original landmark Sullome oil terminal, built in the 1970s to

ceive the oil from the rst wav e of majororth Sea oil discoveries. This time, thecal businesses have learnt how to meete needs of the oil industry, saysastair with pride. Weve risen to theallenge and we have the capability.

gging deepearby, another man meeting Pet rofacseds is Ellis Nicholson. A constructionntractor at EMN Plant, he has recentlyanaged to build a new quarry thanks tos companys contract with Petrofac.at his employee numbers have

creased from ve in 2009 to 48 in 2013,eaks volumes about the impact the

ant has had on his business.My father started working in thisdustry in the 70s when the BP terminalme, and Laggan-Tormore is going tonsolidate our current business for the

future. Of course, we have to prepare foran eventual downturn in work, but if all ofthe business being discussed comes offin the next ve years, we are going to bevery busy.

Certainly theres little doubt that forgenerations of families on Shetland, oiland gas has played and continues toplay an extraordinary role in their lives.

Building a futureUp in Unst, the most beautiful of theislands at the tip of the Shetlands, justtwo short ferry rides away, highlandentrepreneurs Frank and Debbie Strangare also hoping to capitalise on thepresence of workers from Total, Petrofacand their subcontractors.

Their Saxa Vord resort is on a formerRAF radar station-turned environmentaltourism site, and due to a n initial lack ofaccommodation on mainland Shetland,housed around 40 workers when theproject rst started.

Set on a hill with stunning views out to

Britains most northerly outposts, Frankis keen to welcome the workers back,and reinvest any money made from theproject back into the local community,encouraging economic regenerationand protable enterprises in theprocess. When we bought this placeseven or eight years ago, the localswondered if we might be in it for theshort haul, but were keen to try andgive back to the local community.

A day later, back on mainlandShetland, looking down from high upon the site at the Shetland Gas Plant,the sheer scale of the project is clear.Up here, the community affected by theplants arrival feels a lifetime away yetthe two are undeniably linked. Standingtaking it all in, the islands motto, whichappears on the councils coat of arms,springs to mind: Me lgum skal land

byggja. Taken from the Icelandic Njlssaga, it simply means: By law shall the

land be built up.And building it up they are.

Frank

StrangWhen we

bought thisplace, locals

wondered if w

might be in it

for the short

haul, but werkeen to try an

give back to t

community.

nna

epburnorkers tend to

sit the pubsarly, after

eir shifts so

cal publicans

e trying to

clude them byarting their

ntertainments

arlier.


16/27


Camels are a common

sight here in winter,

says John Palmer,Performance TeamLeader on the Rumaila

oilfield in Southern Iraq.

Ive been working here

since June 2011 andIm used to them arriving

in the cooler months

to feed on the desert

vegetation. Rumaila

is a great project to

work on, were

providing inspection,maintenance and repairserviceson behalf of

the Rumaila Operating

Organisation comprising

BP, CNPC and IraqsSouth Oil Company.

Photo by Mehmet Binay,courtesy of BP

BIG

PICTURERUMAILA


17/27


OPINIONTHE FUTUREOF WORK

he way in which we work is changing, and will affect us all, says Peter Long,rogramme Director of Executive Education at London Business School

eecting back on my 35 years of grown work with various large organisations,

strikes me that the scale and speed ofange has been unimaginable.From typing, copying and posting, toworld of always-on social and smart

mmunication, Tweeting and Skyping,s enough to remind me should myds ever let me forget that Im nonger a young thing!The fact is that the nature of work hat it is and how it typically gets dones changing dramatically. And the pacechange is getting faster. The

orkplace, for example, can now beobile or virtual. Our workforces arecoming increasingly global, multi-nerational and remote; encompassingany cultures, time-zones andsciplines. That makes working moremplex for all of us.During the last ten years Ive beencky enough, through my teaching andnsulting, to work with organisationsch as Microsoft, Hilton, Telefonica,

nilever, GlaxoSmithKline and ofurse Petrofac! I have seen the natureeveryday work changing in terms ofmmunications but also with regard tonaround, productivity, quality,sponsiveness, partnering, contractingd many more aspects.

o whats the future of work?

ell, even without a crystal ball we canedict that organisations whethervate or public will continue to strivewards higher performance to meetakeholders demands. Whether thatsestors demanding growth andsurances; customers looking forferentiated value; employees seekingarning and fullment; or taxpayersallenging for greater efciency andnsparency.Workforces have and are becomingore multi-generational as retirementes extend outwards and skillsortages the war for talent bite.

Its a modern paradox, as Hays GlobalSkills Index (2012) reports; manycountries are battling highunemployment and yet suffer fromchronic skill shortages in crucialprofessions such as engineering, IT,

utilities and construction. Much of this isdue to labour market inexibility, globalcompetition for talent and inadequateeducation and training.

Jobs for life?

Meanwhile jobs for life have all butdisappeared, with newer generationslikely to have many more employersduring their lifetime. They may alsond themselves being employedand self-employed simultaneouslyat different points of their careers.

My London Business Schoolcolleague Lynda Gratton has writtena fascinating book called The Shift

The future of work is already here andhas often said to me that the time whenwe work to 70 and live to 100 is fastapproaching.

This is conrmed by the UKs Ofce forNational Statistics, which has said thataround a third of babies born in Britainin 2012 are expected to survive tocelebrate their 100th birthday. There are

good reasons to ensure that all of us, notjust the Generation X, Y and Zers, arepreparing to make the most of our futurework and careers.

Making the most of the future

Like virtually all large organisations thatLondon Business School is privileged towork with, it remains true especiallyin the services world that people buyfrom people.

Across the oil and gas sector, globalcompanies are competing to hire andengage highly capable and mobileworkforces. Embracing the new futureof work will be vital to sustainingorganisational growth and success.

So if longer working lives, morechange, uncertainty and fast knowledgeare the norm, then learning, exibility andresilience are vital skills to have in ourpersonal toolboxes.

As many commentators would say,the only constant is change. For manyorganisations their values applied withintegrity will provide a reassuringlighthouse to help all employeesnavigate even the stormiest change.

So now that well all be living to 100well have plenty time to review ourprogress long after retirement!

Update your knowledgeand skills on a weekly basis

Build a work futurethat has real meaning andmotivates you to giveyour best

Build networks to fuelnew knowledge and ideas

Seek regular feedback onyour progress, andapproach and exploreopportunities

Push boundaries andcomfort-zones

Think about development:what would you like to beknown for this time next year?

Plan how to enhanceyour life-work balance andbuild resilience

Think about your ownpersonal well-being ofwhich your health is thefoundation

In order tobest prepare

yourself

for this rapidly

changing

world ofwork, here

are things to

consider:


18/27


THE TIGERSWHOTOOK ON

EL MERK

e Tigers in May12 from left:bil Chariflando Gagarin Rammalureddine Miraiz El Garmi

mar Lahceneeorge Aklmad Sonbole Karamain Al Achkarchele Chaccour

bdallah Shalakkli Sanaiaotograph by Rammal

Few could have predicted how challengingit would be to build the US$2.2 billion El MerkCentral Processing Facility the jewel of theAlgerian desert. By Rupert Wright


19/27


obody expected the construction of the

S$2.2 billion El Merk Central Processingcility in the Berkine Basin of Algeria tostraightforward. But few anticipated

st how challenging it would be. Thereere many hurdles to overcome, rangingm the sand that needed compactingfore construction, to regional logisticaloblems caused by the world economiccession, to the political and socialessure caused by the Arab Spring.Not least of the problems was the sheerale of the project.There were eight different contractorsorking on the El Merk project includingtrofac which required signicantoperation among the projectanagement team and the variousntracting companies, says Johnams from the Anadarko Algeria

ompany, who was project manager.here were also regional challenges toercome to ensure the import of goodsd services, work permits for expatriate

bourers, and nding qualied localorkers and supervisors in a countryth relatively high unemployment andbour strikes.

etrofacs roletrofac won the contract to builde Central Processing Facility inarch 2009.As the worlds political and economicaders were battling with the greatestcession since the Second World War,rious groups in Petrofac sprang intotion, grappling with a dilemma of their

wn: how to deliver an ambitious projecttime and within budget.

ngineering

r the rst time in its history, a decisionas taken to have the engineering work

done by a number of work centres.

Co-ordinated by the Sharjah ofce,teams in Mumbai, Chennai and Jakartaall contributed to the process of detailedengineering. K Ramana Murthy, anengineer at Petrofac, was in charge of anengineering team in Chennai, central tothe whole project.

The Chennai role involved detailedengineering in three areas: utilities which included instrument air, nitrogenand plant air; the residue gascompression; and the gas dehydration.We kicked off with a meeting in Sharjah,where we agreed on a division ofresponsibility, scope of work and decidedon a technical document register,says K Ramana.

The project was monitored throughweekly conference calls. While it was anunusual approach to have different ofcesinvolved, it was decided that it was thebest approach due to the scale of theproject and the need t o progress quickly.K Ramana says that it helped that

engineers all speak the same language.With so many teams involved it was

inevitable there would be differences ofopinion. I remember that there weredisagreements between team membersin Chennai and Sharjah, he says. My jobwas to try to resolve this, keep cool andtell them how to move forward. Itsdifcult; you have to talk to people softly,but impress on them the urgency ofgetting it done.

At the peak of operations there weremore than 70 engineers in Chennaiworking on the project.

While K Ramana was busy on theengineering, the procurement team inSharjah was swinging into action.

ProcurementWe began the procurement processat the beginning of 2009, says ASSuryakumar, deputy director ofprocurement. It was the start of theglobal recession and we were able to takeadvantage of the falling prices of raw

materials. There were substantialdiscounts to be had; it must have beenthe best time for procurement in thehistory of Petrofac.

The recession also helped with deliverytimes, as factories were not full of orders.We made best use of the circumstances;I dont think well have anotheropportunity like that.

The procurement team came up withsome innovative ideas that have sincebecome standard practice at Petrofac.

The rst was to book copper for thecables, instead of buying cablesthemselves. Not only were there

signicant cost savings, but six months

later, the price of copper (and also c oppercables) almost doubled. Now we do thisfor every project, says Suryakumar.

The other innovation was to split criticalitems up by categories when orderingthem, rather than just selecting onesupplier. For example, when buyingvalves, requirements were split into size,pressure rating and metallurgy, and thenchosen from a range of suppliers, ratherthan just one. This resulted not only inbetter prices, but also in better qualityand timely delivery of the goods acrossthe board.

The major procurement work lastedfrom March 2009 until the end of 2010.

And having placed orders within budget,they then had to overcome anotherchallenge: logistics.

The site is more than 1,000 km fromany of the three ports used: Algiers,Skikda and Annaba. The procurementteam also discovered that the Algeriancustoms had a different mindset to what

they were used to. There was a frequen

turnover of people at their end and evethe documentation kept changing.

Wed nd that one time we could getitem into the country, says SuryakumaThe next time, with exactly the sameforms, we could not. It was quitefrustrating. For the rst six months wewere literally on our knees. But eventuawe started to get a grip on it and after aof hardship we succeeded in getting oumaterials into the country.

Another problem was that materialswent missing from the site. There wasnothing we could do about this, saysSuryakumar. Due to the high number oconstruction contractors on site thematerials were sometimes difcult totrack and we had no option but to buy goods again.

ConstructionKhaled Ghabboura, project director ofconstruction, arrived at the site in Octob2010. Some underground piping had

El Merk: The Bigger Picture

AS Suryakumar, Deputy Director ofProcurement, based in Sharjah

The site was developed and is operatedby Groupement Berkine, a joint venture ofSonatrach and the Anadarko Association(comprising Anadarko, Maersk Oil and Eni)on behalf of themselves and the other ElMerk partners ConocoPhillips and Talisman(Algeria), to build the surface facilitiesneeded for the exploitation of hydrocarbonliquid reserves from reservoirs in Blocks208 and 405a in Algeria. The project islocated in Block 208, 90 km south of theSonatrach/Anadarko-operated HassiBerkine South facility and over 1,000 kmfrom the coast. Planned as the regionsproduction hub, El Merk would processan estimated 98,000 barrels of oil, 29,000barrels of condensate, and 31,000 barrelsof liquefied petroleum gas (LPG) per day;and a natural gas liquids (NGL) train witha nominal capacity of 600 million standardcubic feet per day. The specification forthe CPF built by Petrofac also required itto process 500 million standard cubic feetof residue and re-injection gas compressionand approximately 80,000 barrels perday of produced water treatment andre-injection facilities.

KhaledGhabboura,Project Director ofConstruction (left);

Mulpuru Prasad,CommissioningManager (right)

Compare the aerial view of the CPF and

camp in July 2011 (below right) with thephotograph of El Merk in March 2013by Ali Rammal (above)


20/27


en built, along with a drainage system,t it was no more than 16% complete.ere was still much work which hadbe done.I had to totally re-think the organisationucture, says Khaled. We had eightajor subcontractors who needed to beegrated with our own team t o build onelid team.His work involved educating thebcontractor workforce abouttrofacs stringent approach to healthd safety, good practices and alsoology. He also divided the scope of

ork among six area managers, who hadtake responsibility and report in everyy. At the peak there were more t han000 workers on site at six differentmps. The workforce was 90% Algerian

orkers, with the remaining 10%mprising 40 different nationalities.aled went regularly to the different

ess halls to eat with the workers andganised activities such as barbecuesthe desert.Of course we had to be culturallynsitive and smart! he says. But it

asnt always straightforward.One of the biggest challenges for theoject was dealing with labour strikes ine sub-contract workforce. There wereur major strikes during construction anden though the workers involved weret working directly for Petrofac,till slowed down the project.The strikes were difcult, there were noes on how to deal with them, and theye organised just as in France,says.

They blocked the camps and the sited we had to go and support ourb-contractors management teams

in their negotiations with them.The longest and most difcult to

resolve strike lasted 37 days. It alsocame at a very critical time, as the plantby then was 60% complete. In the endthe camp had to be shut down.

For me it was a very exciting time tobe in Algeria, he says. It wasnt easy,but it was interesting, to be working in thedesert, meeting lots of different people.

CommissioningI arrived in June 2011, says MulpuruPrasad, commissioning manager. It wasstill in the construction stage at that time,

just above 60% complete.The schedule was very tight, and there

was mechanical completion still to nish.The pipes needed cleaning and all thepre-commissioning activities were at anearly stage. There were electrical andinstrumentation activities taking place,as well as the tting of the control panels.

Even though I had worked in Algeriabefore, it was difcult because it was

extremely cold and extremely hot in thesame day. We called the site team theEl Merk tigers, he says.

And Suryakumar agrees that the teamput in place for the project was anextremely special one. It was a majorcontribution to our success. Everyonefelt we were working as one, and theinterface with the other teams wentbeautifully, Ive never seen that beforeor since.

John Adams says teamwork was vitalto the success of the project. Ive beenon the management team of four megaprojects in Algeria projects requiringgross investments of more than US$1billion in todays money and I thinkEl Merk was the most challenging. It isespecially satisfying for me because at64 years old, this will probably be mylast major project.

A mega achievementFive years on and the facility isperforming well, working virtually at fullcapacity. It is producing oil, condensate,and liqueed petroleum gas togetherwith a natural gas liquids (NGL) train.

During construction more than 1,000km of electrical cable was laid, alongwith 1,200 km of instrument cabling,and 225 km of telecom cabling. A m egaproject indeed and proof that Petrofaccan perform in the most challengingof conditions.

As John Adams concludes, TheEl Merk Project is among the biggestand most satisfying of my ca reer.I am very happy and proud of theoutcome and the world-class projectwe delivered. Its a jewel in the desertand we can all be very proud of whatwe have achieved.

r K Ramana Murthy was in charge ofe engineering team in Chennai

Marking First Oon 15 March 20from left:Mario Torres(Petrofac CM),John Adams(Anadarko PM),Lahcene Bada(Sonatrach PM),Ahmad Sonbol(Petrofac FCM),Salah Mekmouc(GroupementBerkine Operation),SalaheddineMessaoud(SonatrachComm Mgr),Ammar Nouace(GroupementBerkine Operation),Bill Savage(GroupementBerkine Operation)Photograph byAli Rammal


21/27


But also the agility and exibility to adato market changes. Thats been one ofmy biggest career lessons.

So how will these attributes comethrough in the Boardroom? Kathybelieves in a strong moral compass, anan approach which is collaborative andsupportive. Its important not to getcaught up in fear or excitement, but to inquisitive, with an emotional intelligencthat allows you to manage risk. Being along-term, strategic thinker is key.

As for the challenges ahead? I thinkbeing able to balance innovation andprocess so they are complementary isimportant. Innovation naturally feeds

companies andpeople. Procesallows companto manage theiprots, managethe risks thatcome with it anre-invest theircapital for grow

Innovation andprocess used

together can enable sustainable growtThere are external pressures outside

the sector to which Boards must also battuned. Kathy worries about futureleaders, and whether they will possessthe requisite skills to provide leadershipa world which is evolving so fast that it almost impossible to dene what skills be necessary. She identies the digitalspace as a compelling competitiveadvantage; but one which is evolving asuch a pace that companies have thedouble challenge of managing the cyberisks that could cripple them, as well asthe opportunities that embracing newtechnology could deliver.

With seats on the advisory board forSamsung Oil & Gas USA Corporation,Parallel Petroleum LLC, and a trustee othe Society of Exploration GeophysicisKathy has a busy portfolio, but manageto relax with pilates, cycling and travel.She meets her challenges by staying trto the mantra that has helped guide hethrough life since she was a child.

My father had a good friendship with

a famous American football coach namVince Lombardi. When I was four yearsold my dad sat me and my three siblingdown in front of a lm of Vinces pre-match speech to his players. His mantrwas about the second effort. In the inieffort you get yourself motivated, butwhats required when you get knockeddown and have to get back up again isthe second effort and thats whatmakes the real difference. I believe t herst effort is what your parents instil inyou, but life is really about the secondeffort. And thats when you get to shakhands with innovation!

LIFE IS REALLY ABOUTTHE SECOND EFFORT

Ask Kathy Hogenson what attracted herto the oil and gas sector and you get anodd answer. It was my mothers way oftrying to talk me out of becoming anartist, she laughs.

Growing up in the American auto cradleof Detroit, engineering was in the familysblood. Kathys mother was a visionarywho saw energy as being the future.She was keen for her daughter to useher maths and science skills, and take thecareer path which both her grandfatherand great-grandfather had followed,and which had served the family well.

Kathy duly took the same route,sceptical but opting for a de gree inChemical Engineering, with Petroleum asa subsidiary. Then came a dening point:Kathy discovered geology. I saw MotherNatures canvas laid bare, and I wascaptivated by its artistic science.

Seeing a life ahead that allowed her tocombine her love of art with her scienticqualications, Kathys career took off.Spending her early years as a petroleum

and reservoir engineer, her roles took herto Indonesia, Ecuador, Argentina,

Australia and Korea, working with USand foreign based companies, includingnational oil companies.

Kathy assumed her rst CEO role in2001 at Santos USA Corporation, andheld a number of senior roles inexploration and production technologyat California-based Unocal Corporation,before setting up her own US-basedcompany Zone Energy LLC.

Her 30 years experience gives her agreat standpoint from which to view thesector, its challenges, and how, in hernew role on the Board of Petrofac, shecan help guide the business forward.

What attracted me to the companywas Petrofacs leadership, approach toinnovation and its results. When you lookat its size, how quickly it has grown, I wasreally impressed with the accomplishmentin terms of the collective action it musthave taken, and the quality of execution.Im very excited about the evergreeningof the strategy, and how Petrofac willcontinue to take advantage of theopportunities offered by technology

advancements in LNG and de epwater.These are areas I believe are the future,and really play to the innovation Petrofachas already demonstrated it can deliver.

Kathy is enthused by the opportunitiesthat may lie ahead. She believes the roleof gas in the world will grow. And, asenergy reforms pave the way for furtherinvestment, she believes that Mexico,where Petrofac has been a rst mover,provides abundant growth opportunities.

Kathy sets store by innovation, to keepa business nimble and responsive. I thinkboth as a business and a person youneed self-belief and patience, she says.

s the effort required to get back up again and its the sportshilosophy driving our new Non-Executive Director Kathy Hogenson.terview by Alison Flynn. Photograph by Dylan Thomas

As a businessand as a person

you needself-belief andpatience butalso the agilityto adapt


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OLD

HANDn Gordon, 49, is a controlom technician for Total E&PK, working on the Dunbaratform in the North Sea.e spent much of his earlyreer onshore as antrument technician atterhead power station,t when he joined Total in97, he did his rst Basicfshore Safety Inductiond Emergency TrainingOSIET) course.

In August, he attendedPetrofacs Survival training

centre in Aberdeen toundertake his fourth one-day refresher course theFurther Offshore Emergency

Training (FOET).I have always done my

training with Petrofac it wascalled RGIT in the early days and it has stayed more orless the same in that time.Some of the equipment andprocedures have changed butthe basic fundamentals arevery similar to what they werethe rst time back in 1997.

A lot of my friends haveprogressed offshore during

their careers, like I have.It went a bit quiet a few yearsago; people stopped cominginto the industry.

But the investment hasreturned and things do seemto be picking up and moreyoung people are interested inworking offshore but if youlook around the lounge at theheliport it is still dominated bythe over-40s.

I dont get apprehensiveabout the training but I cantsay I enjoy it I dont know

anyone who actually looksforward to it. The rst time

I did it I had a bit of anincident I thought that abuckle had stuck and thatsthe sort of thing that makessome guys dread it.

But luckily the support isvery good. Ive always thoughtthe trainers are excellent, veryprofessional. You know thedivers are there if you did getinto any difculty, and younever feel in danger.

Photographs by Ian Teh

N SAFE HANDShether youve been working offshore for 20 years or are new to the industry, you still need to completefshore survival training. Petrofac Training Services home of the RGIT has been training the offshoredustry in Aberdeen for more than 30 years. We talk to two recent delegates about their experiences

GREEN

HANDPaul Burgess, 26, has workedon the roads in Scotland sincehe left school nine years ago,but working offshore hasalways been at the back of hismind. To help him secure a jobin the industry he bookedholiday from his work and paidto come and train withPetrofac, taking advantageof Petrofac Training ServicesSurvival Plus package, whichbundles together the BOSIET

and MIST (Minimum IndustrySafety Training) courses and

is tailored for new entrantslike Paul.I just needed a new career

step. Im getting married nextyear; my wife has just qualiedas a nurse, and we decidedthat as soon as shed sortedout her career, it was time topush mine forward. Its notthat I dont have qualications I went to college to do awelding qualication and anintroduction to engineering its just that working offshore issomething youve got to do in

order to get on around here.The Survival Plus package

also offered 50% off the costof another training course, andIve gone for the Greenhandcourse, which is for newentrants like me and coversbasic lifting operationstraining, manual handling andhelideck safety. You cant beatPetrofac Training Services. Butat 1500, its a big commitmentso I need to start sending outmy CV when I get home!

Im comfortable in thewater in fact Ive got all mydiving certicates but I was

still apprehensive. I couldntsleep the night before.

I watched all the clips onYouTube so I knew what itwas going to be like.

But the course was brillia really good. It really opensyour eyes as to what couldhappen. And the trainers wespot on, very knowledgeab couldnt fault them.

And you always feel safeThere is always someonethere helping you through itHopefully now I can get mysa job offshore and beginworking my way up.


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|Petrofacts October 2013 Petrofacts October 2013

I got this calculator when I was just12, and its been with me ever since.Its a part of my working self.

It looks a bit like the way I feel; heldtogether by insulating tape and markedby the passage of time.

It must have been quite a signifcantpurchase back in 1982, a big investmentby my parents I suppose thats why Icarved my name into the back with thepoint of a compass, to warn off potentialcalculator thieves.

I used it at school and through myChemistry degree. It sat on the lab benchnext to me as I did my PhD and post-doctoral research and had numerouschemicals spilt over it. It came to thedrilling rig with me when I was apetroleum engineer at Shell, and thenhelped me to check my computersimulations when I moved into

Doyouhave something which you take to work each day, and which says somethinabout you and the work you do for us? Let us know, at [email protected]

I ALWAYSCARRY...MY SCHOOLCALCULATORSome of us have an item we taketo work each day, which revealssomething about us and our lives.This issue: Matthew Harwood,our Group Head of Strategy.Photograph by Matthew Donaldson

reservoir engineering.As my career has progressed, the

numbers have got bigger Im nowworking in billions! but the sums havegot simpler. Nowadays its mainly justplus and minus (more plusses thanminuses if possible), with the occasionmultiply or divide for good measure.

Despite its tatty appearance, whenI bring it out in meetings with otherengineers, it becomes a talking point.Everyone seems to have a trusty oldcalculator lurking in a desk drawer!

The older generation of engineers arelike that, really fond of our old calculatoeven though theres now moreprocessing power in a mobile phone.

Me and my FX-82 weve beenthrough so much together. I reallyought to give it a clean and perhapsa change of batteries!


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| Petrofacts October 2013 PetrofactsOctober 2013

BREAKFASTAROUND THE GROUP

Everyone starts their day in a different way and with Petrofac people based right around the globe,heres how some of your colleagues start theirs

Barry SnowAberdeen

My Friday Special asausage, egg, hashbrown and haggis rollserved up with a sideorder of baked beans.

Camilla Winther

Aberdeen

Yoghurt with mueslibecause its nutritiousand healthy. Ryebread(with cheese) becauseas a Dane I just cantlive without it! Coffeegoes without saying

Rebeca RodriguezMexico

For breakfast I usuallyhave a sandwich withhealthy bread, ham,cheese or eggs anda fresh fruit juice forvitamins.

Mohd HadzrulBin Zulkafi

Malaysia

A traditional Malaysianbreakfast called NasiLemak. The mealcontains rice, a friedegg, cucumber and aspicy sauce.

Matthieu BillesMexico

A sandwich withwholegrain bread,ham, my favouriteMexican cheese calledpanelaand Dijonmustard. I usually addgrapefuit or melon too.

Mohd DhiyauddinAssiddiq BinMohd ZaidMalaysia

Puri, an Indian dishmade of rice our andeggs, with a dhall currywith chick peas andbeans and a sh curryto add some spice.

Kayvaan KermaniAberdeen

Since returning from aFloridian holiday, I nowhave wafes, with theusual maple syrup andvanilla sauce. My levelof exercise has had tostep up!

Yatish Thakur from Mumbai,

may be 47 years old, but hehas proven hes still got whatit takes to succeed. In Maythis year he won the covetedgold medal in the veteransdiscus throw at the 33rdMasters National AthleticsChampionship held in Kerala.He competed in four otherevents the 100 m sprint,

javelin throw, long jump andthe 4x100 m relay race butit was his impressive 25.96 mdiscus throw that broughthome the gold!

Barrie Probert, a PrincipalStructural Engineer for OPO inManchester, is undertaking aYear of Challenges from whichhe and his family aim to raise10,000 for Great OrmondStreet Hospital (GOSH).

Since last November, theyhave completed:

a 10 km urban assaultcourse around the EtihadStadium in Manchester a 67 mile cycle ride fromWattan-at-Stone to Hackney The 5 km GOSH Racefor Kids a 75 mile cycle ride from theLondon Eye to Brighton a 50 mile cycle ride fromLiverpool to Chester

Barrie also took part in theLondon to Surrey bike race(page 48).

So far theyve raised more

than 9,000 which includes agenerous donation of 935from colleagues in theManchester ofce.

The Probert family wereinspired to embark on theirepic fundraising quest afterBarrys grandaughter Jaylahad life saving heart surgery

at GOSH at just 12 weeks old.Jayla, now one, has also beenpart of the fundraising efforts completing the GOSH racefor kids in her pushchair!

A YEARS EFFORTS

ENGINEERINGFOR EXCELLENCE

Weve been working inpartnership with the Royal

Academy of Engineering (RAE)since 2009, says LouiseFerguson, Petrofacs Head ofOrganisational Development.From this, the Petrofac RAEFellowship Programme wasformed, initially to create 18Fellowships over three years.Now in its fth year wecontinue to provide: 9,000as a contribution towards feesand living expenses;mentoring; a company-sourced project and a workplacement to each individualselected to pursue a one-year

Masters programme. 22Fellows have been appointed,and eight have gone on towork for us.

They join a growing list ofPetrofac alumni (see right).

This programme cementedour partnership with the RAEand its gone from strength tostrength, adds PetrofacsHead of CSR, Gwen Folland.Weve sponsored the RAEs

Awards Dinner for three years

Jayla enjoying the GOSH race

and honoured ve risingstars from within Petrofacwho have made exceptionalengineering contributionsearly in their careers.

In an effort to make

transformational changesaround STEM to inuenceyoung peoples views on thesesubjects and engineering inparticular Petrofac issponsoring the RAEs STEM

Teacher Network. A nationalnetwork of support for STEMteachers will be created; thiswill focus on engaging pupilsaged 11 to 13 in STEM ata time when their interestis developing to help shape

their future choices.Gwen says: Were

beginning this programmein a small way in the UK withthe appointment of twoteacher co-ordinators. Each

teacher co-ordinator canpotentially inuence around850 pupils so the impact ispotentially signicant.

So far weve spent morethan 400,000 with the RAEto develop internal capabilityand promote engineering.With skilled capability in shortsupply, and increasingdemand, its been a goodinvestment in our industrysfuture, concludes Louise.

2013

Mustafa Aljaf, Sean McKirdySyed Shah, ChukwukaMaduekah, Abdul Zafar

2012Oliver Seelis, Tania Alvarez,Samuel Lisney, Isaac Afonughe

2011Sidney Abiodun, Alistair Bridges,Ali Izzidien, Hippolytus Zama

2010

Steven Riddell, Carl Asibey,Obiageli Iwugo, Swetha Nama,Ali Abdi, David Ntoko

2009Fidelis Mugabe, Liesel De Temple,Elaine Donegan

People

GOLDENYEARS

Hemant GorSharjah

My breakfast keeps meenergetic and t for myjob. It consists of localdates, walnuts andhomemade chapatti.I drink around 1.2 litres ofwater before breakfast.

Petrofacs RAEFellows:

In the next edition, well nd out how colleagues travel to and from their workplace. If youd like to be featured, please send a short description of your workjourney along with a photograph of yourself and your usual mode of transport to [email protected] before 30 November 2013.


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People

| Petrofacts October 2013 PetrofactsOctober 2013

WORKING WITH A VISION

curiosity and engineeringknow-how alive.

He has worked on some ofthe worlds heaviest offshorelifts and largest pipelines, forcompanies such as Micoperi;Saipem (where he worked onthe Saipem 7000); andSaibos, where he managedthe new-build of their rstmultipurpose deepwatervessel, the FDS.

In 2010, Kimon wasappointed Senior VicePresident at Saipem,managing their entire offshoreeet and more than 4,000employees. And he hasworked in locations includingEurope, West Africa, Braziland South Africa.

But apart from someprevious visits to constructionyards, he says, this is myrst time working in theMiddle East.

People here are curious

about deepwater offshore,because its not yet a bigbrand for us in the MiddleEast. But it will becomeso, and Im bringing theexperience and knowledgeto make it so.

Theres a great atmosphin the ofce here and alsoreally good weather!

After 30 years in theindustry, Kimon still loves hi

job. Its very, very nice workhe says, being in front ofchallenges and problems.

Hes particularly interestein innovation, with severalpatents pending as aninventor in his own name.You have to have a vision,he explains, to see someththat other people have notthought about.

And his current vision?For our new vessel to still ban industry leader in twentyyears time.

Vice President of Subsurfacein the IES TechnicalDirectorate, Sayma Robbiehas now relocated toBucharest to become theCountry Manager forRomania. Sayma is nowresponsible for leading andmanaging all aspects of ourRomanian business includingour important productionenhancement contract (PEC)at Ticleni.

Three years into a 15-yearcontract, Petrofac is applying

its subsurface capability togrow production at Ticleni,and Saymas strongbackground and expertise inpetroleum engineering will bekey in helping further unlockthe potential of futureproduction.

Sayma said: Ticleni isfascinating because of its age,

complexity and uniquechallenges. With PECcontracts we squeezemaximum production fromolder assets and create valuefor our customers who are freeto concentrate on larger elds.Were paid a tariff per barrel forproduction [above a particularquota], so its crucial wemaximise performancebecause thats what createsvalue for Petrofac.

Sayma is relishing thechallenge of using her

experience in her new role,having spent the last 18months establishing anddeveloping a high qualitysub-surface function aimedat supporting our global IESprojects portfolio.

Her previous role at DubaiPetroleum, leading a teamhalting the decline of a giant

mature oil eld, will stand hein good stead.

Its great to be able to mobetween roles where you arhelping develop thecompanys expertise tosupport an evolving growingbusiness offering, and thenyoure able to put that intoaction in an operation, in away it benets both thecustomer and ourselves.

As importantly, the role oCountry Manager is alsoabout forging long-term

relationships with ourcustomers, communities ankey stakeholders in ways thcement our integration intoour host countries as along-term partner.

This is a new dimensionfor me, but one that I lookforward to developing over coming months.

Kimon Ardavanis has beenappointed to the role of Senior

Vice President, OffshoreAssets and Marine Operations,based in Sharjah.

Initially, his role will be tolead the build of our newtop-end deepwatercombination vessel once ithas been ordered, and to growa rst-class team to do so.

Kimon has had a

distinguished, 30-year careerin the oil and gas industry,with extensive expertise inthe offshore sector,encompassing both deepand ultra-deep waters.

He graduated (withhonours) in Genoa in 1982 asa Naval Architect the samecareer as his father, and onehe had wanted to pursuehimself since school.

I am still very passionateabout engineering, he says,and I continue to keep my

BACK IN THE FIELD

This is a newdimension forme, but one Ilook forward todeveloping

Its very, verynice work,being in front ofchallenges andproblems

A local community trainingprogramme developed by ourCSR team in Saudi Arabia wasrecently recognised at the

2013 CSR Peer Awards inLondon. The project, whichinvolved training more than200 young unemployed menand women in Saudi Arabia,was one of 12 nalists frommore than 300 entries.

The team, led by Daniel-Brian Murteza and BasharGhrawi, designed andsponsored a six-monthtraining programme, deliveredby the local Chamber ofCommerce, to develop HRand administration skills.

Around 50 womencompleted training and 12 arenow working for the company.Some of the young womenwere physically challengedand the training helped todevelop their self-esteem.

At the conference andawards ceremony, Danieltalked to attendees about howproviding this training andhelping Saudi women to enterthe workforce is dispelling

stereotypes, changingperceptions, developingpeople, and changing lives.

BLOOD,SWEATAND GEARS

desire to improve the lives ofldren and young people

spired four colleagues frome UKs Woking and Londonces to get out from behinde desk and onto the saddle.had a fantastic daysterday, writes Mikeannavina, in an ofce emailhis Petrofac IES colleaguesLondon after completing the0 mile cycle ride fromndon to Surrey the sameute taken by some of theorlds best cyclists whompeted in last yearsympic road race.

The event, which took placeAugust, started at theympic Park in London and

Mike CannavinaHead of FacilitiesEngineering andAsset Integity, IES,LondonFinish Time:7 hours 45 minutesFunds raised:2,300 for WhizzKids, a UK charity that helpschildren with mobility difculties.

I had never cycled more than10 miles before! I started training inApril and it was difcult, but thehighlight was the sprint nish downthe Mall to the cheering crowds.

Nigel BlairCivil and StructuralConsultant, ECS,WokingFinish time:6 hours 01 minuteFunds raised:1,000 for Eikon,a Surrey-based charity that providessupport to vulnerable young localpeople and their families.

Im the Chair of Trustees for theEikon Charity so I was delighted tosupport them by participating.

Lisa LewisPA and CSRCoordinator, ECS,WokingFinish time:8 hours 35 minutesFunds raised:1,700 forthe Richard Cloudesley Schoolwhich supports childrenwith educationally signicantphysical disabilities and specialeducation needs.

Im so pleased I completedthe race, I had two punctures andmy chain come off, but I didnt letit deter me!

Matthew AllenSenior ProjectEngineer, IES,WokingFinish time:7 hours, 02 minutesFunds raised:1,100 also forWhizz Kids.I raised over 3,000 by cycling for

children in Romania earlier in theyear, so I wanted to do somethingsimilar closer to home.

SAUDIAWARD

around 20,000 cyclists rodethrough the Citys trafc-freestreets before heading out intothe surrounding countryside ofSurrey. A gruelling 100-mileslater, the nishing line was insight, and cyclists wereinspired to complete the lastfew miles as they sprinteddown the Mall towardsLondons most famousaddress: Buckingham Palace.

Each cyclist was individuallytimed using an electronic tagattached to their bicycles.Mike, and three colleaguesfrom our Woking ofce, all

nished the race and raisedfunds for charity. We askedthem about the experience:

Nahida Basu receives theAward for paper recycling

gel Blair from the Woking office our fastest finisher

WASTEPAPERWIN FORSHARJ

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