picture petrofacts competition: the winning entry …...2 january 2012 cover image: a saker falcon,...
TRANSCRIPT
January 2012 | petrofac.com
Picture Petrofacts competition:
The winning entry takes the January cover slot
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January 2012
Cover image: A Saker Falcon, Banyan Tree, Ras Al Khaimah. The winning entry in the Picture Petrofac competition taken by Richard King, UAE.
IN THIS ISSUE
Petrofacts is designed and published byPetrofac on a quarterly basis. To providecomment or contributions please contact:
Corporate Communications
Hazel Meldrum/Claire [email protected]
Onshore Engineering & Construction Engineering & Consulting Services
Kaye [email protected]
Offshore Projects & Operations
Jilly [email protected]
Training Services
Pamela [email protected]
Production SolutionsDevelopments
Elinor [email protected]
glossary of abbreviaTions
OEC ECS EPC ERSC FEED FDP
Onshore Engineering & Construction
Engineering & Consulting Services
Engineering, Procurement, & Construction
Emergency Response Service Centre
Front end engineering and design
Field development planning
FPF HSSEIA IOC JV LSTK LTI
Floating production facility
Health, safety, security, environment and integrity assurance
International oil company
Joint venture Lump-sum turnkey Lost Time Incident
MOPU NOC OPO OPITO PTS UKCS
Mobile Offshore Production Unit
National oil company Offshore Projects & Operations
Offshore Petroleum Industry Training Organisation
Petrofac Training Services
United Kingdom Continental Shelf
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08
In this edition we focus on our Woking business, a centre of technical excellence
Engineering & Consulting Services welcomes new MD, Craig Muir
06 24Petrofacts speaks to Paul Groves, managing director for Petrofac Training Services
A year of progress and opportunities for Training Services
EVE Awards 2011 Celebrating the achievements of individuals and teams at our inaugural award ceremony
Picture Petrofac We announce the overall winner and runners up of our photography competition
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20Expanding our offshore capabilities
28Combining complementary skill sets to create new opportunities
Establishing strategic alliances
12The group security team talk about the impact of the turbulent events of 2011
Supporting our business in new geographies
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Taking our offshore experience into the international EPIC market
Petrofac and Raytheon partner to deliver training at NASA’s Johnson Space Centre
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WelCoMe To THe JanUary 2012 eDiTion of PeTrofaCTs.as the year begins we are entering a new chapter in the group’s journey. Having celebrated 30 years in business during 2011, we are moving forward, with ambitious growth plans and clear financial targets, towards our vision to become the world’s most admired oilfield service company.
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2011 was a challenging and turbulent year across the globe, both economically and politically. While there is likely to be continuing uncertainty during 2012, the world’s demand for hydrocarbons is increasing and our market is growing. The relative stability of the oil price during 2011, at around US$100 per barrel, combined with the requirements of our customers to increase their expenditure plans, and accordingly, their requisite need for service support to their operations, means that demand for Petrofac’s services is robust. As a result, we continue to see significant opportunities for the group which has given us the confidence to guide the market towards our expectation to more than double our recurring 2010 earnings by 2015.
We are certainly on track to achieve this target, with a strong financial performance in 2011. In our December trading update we confirmed that we expect to deliver like-for-like net profit growth of at least 20% when we announce our full year results on 5 March 2012, and our continuing high level of backlog (US$10.6 billion as per the end of December) gives us excellent visibility of our future earnings.
For the past two decades we have been building the capability of our group, increasing both the scale and scope of our service offering in order to bring deeper capability to our customers. This has been achieved mainly through organic growth but also through small, but competence-enhancing acquisitions. The result is that Petrofac can provide services to customers across the spectrum of the oil & gas asset lifecycle, on either a stand-alone or integrated basis, under flexible commercial models which are tailored specifically to our customers’ needs.
We are continuing to develop our capability further, and, where appropriate, we will also create alliances and joint ventures to enable us to achieve our growth targets. At the time of going to press, we announced an alliance with Schlumberger to establish a working relationship to deliver integrated and high-value production projects in the emerging and growing production services and production enhancement market. This is an exciting development for our group and full details of the alliance can be found on page 28.
To help us deliver our plans for growth, the group has been re-organised into two divisions, Engineering, Construction, Operations and Maintenance (ECOM), led by Chief Executive, Marwan Chedid, and Integrated Energy Services (IES), led by Chief Executive, Andy Inglis. Each division has three business units, led by their respective managing directors.
In summary, 2011 was a year of evolutionary change and consolidation in our business as we prepare to meet the challenges of the coming years and to grow and develop our business in line with our strategy and plans. We never forget that Petrofac is a people business, and it is our people living our values every day in all that they do, that enable us to prosper as a group. We recently celebrated our values as part of our inaugural employee awards ceremony. I was delighted with the response to this initiative and by the quality of the applications we received. The awards ceremony was a great evening and all of our finalists and winners should be very proud of their achievements. For more details on the EVE awards see pages 16 and 17. Also, and as I hope you will have noted from the striking cover image of this edition, our annual photography competition has proved yet again to be a great success with more than 3,000 entries. I would like to add my congratulations to all the finalists, featured on page 6, including this year’s winner Richard King.
2012 is set to be another incredibly exciting year for Petrofac, with many important strategic initiatives planned to support our geographic expansion as well as the continued development of our capabilities and competency. I am very positive about the future for our group and I hope that you will all continue to be part of our exciting growth journey.
I hope you enjoy this issue.
Ayman AsfariGroup Chief Executive
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Picture Petrofac 2011 – the winners
Following a much anticipated wait, during October we announced our overall winner and 12 runners up in this year’s Picture Petrofac competition.
The competition, open to Petrofac employees, is now in its fourth year with interest and participation growing year on year. This year, more than 3,000 photographs were submitted which made the task of judging and auditing the entries ever more challenging.
Overall winner Richard King, whose remarkable image is featured on the cover of this edition of Petrofacts said: “I have a very strong interest in photography and I was at a falconry display at the Banyan Tree in Ras Al Khaimah (UAE), camera in hand, looking for the perfect shot when the Saker Falcon swooped into view. The rest, as they say, is history! Interestingly, it was my wife who persuaded me to submit the photograph for Picture Petrofac so; without doubt, I am very pleased she did.”
The winning photographs, illustrated here, take pride of place in the 2012 Petrofac calendar and each of the successful entrants received a Canon EOS 1000D digital SLR camera.
Along with Richard, our congratulations also extend to the remaining 12 finalists:
• Calum Gray, UK
• Rustam Uzbekov, UAE
• Gareth Costello, UK
• Olesya Negodina, Kyrgyzstan
• Helen Fennell, UK
• Sirima Sengupta, UAE
• Kaustubh Bomle, India
• Sharad Singhvi, UAE
• Rajulu Kumar, UAE
• Alaxander Gaivoron, Sakhalin, Russia
• Nora Hassouneh, UAE
• Rod Sayers, UK
PHOTOGRAPHY COMPETITION
Richard KingPicture Petrofac overall winner A Saker Falcon, Banyan Tree, Ras Al Khaimah.
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Calum Gray, UKSeagull sunset, Irvine beach, Scotland
Olesya Negodina, KyrgyzstanPoppy, Jalalabad region, Kyrgyzstan
Kaustubh Bomle, IndiaBeach safari, Dadar beach, Mumbai, India
Alaxander Gaivoron, RussiaInside the State Hermitage Museum, St Petersburg, Russia
Rustam Uzbekov, UAEKokpar (Kazakhstan’s national game), Uralsk, Kazakhstan
Helen Fennell, UKTraditional engineer’s office, Brooklands Museum, Weybridge, England
Sharad Singhvi, UAEMorning sunlight, Kandy, Sri Lanka
Nora Hassouneh, UAEKandyan cultural dance, Kandy, Sri Lanka
Gareth Costello, UKYoung boy playing football, Gili Islands, Lombok, Indonesia
Sirima Sengupta, UAEOn the way to the Araku Valley, Vizag, India
Rajulu Kumar, UAEButterfly, India
Rod Sayers, UKDerwent reservoir, Peak District, Derbyshire, England
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January 2012
BUSINESS UPDATE
New managing director, Engineering & Consulting Services
After heading up Petrofac’s Engineering Services (now Engineering & Consulting Services) business since 2009, managing director Rajesh Verma is moving into a new role to join the corporate and strategy development group led by president, Maroun Semaan.
Verma joined Petrofac in 1992 as a regional director and has held a number of senior positions over the last 20 years, not least, holding 15 directorships over a variety of Petrofac’s legal entities. In his new role, as an ambassador and champion for strategic initiatives, Verma will focus predominantly on our ongoing corporate development programmes. With his extensive experience including acting recently as a senior mentor for graduates within Petrofac’s ‘future generation programme’, he is ideally placed to support Petrofac’s strategic aspirations in this area.
Verma commented on his new role: “The last 20 years have been an amazing journey as we have developed the business. I have had the opportunity to hold a number of senior and varied roles, each with a different strategic emphasis. 2012 heralds new beginnings and new challenges for all of us as we strive to reach our objectives. I am tremendously excited about the programme we have in place for 2012 and confident that we can really make a difference.”
I am tremendously excited about the programme we have in place for 2012 and confident that we can really make a difference.Rajesh Verma
Craig Muir will join Petrofac in February and succeed Rajesh Verma as managing director for our Engineering & Consulting Services business.
With 25 years of international industry experience Muir, who will be based in the Sharjah office, brings a wealth of operational and business experience to Petrofac. In his most recent role, as executive vice president within growth regions for AMEC based in Abu Dhabi, he held responsibility for AMEC’s regional growth in the Middle East, Africa and the CIS. From 2005 to early 2011, as regional director, Natural Resources (MENA), Muir was accountable for the safety, business, strategic and commercial performance of AMEC’s Natural Resource business in the region, leading a large workforce engaged on project management consultancy and engineering services for asset development and asset support. Prior to joining AMEC, Muir held numerous roles working in the oilfield service sector with KBR, Brown & Root and AOC International, and he has worked in the North Sea, extensively in the Middle East, and in Asia Pacific.
In his new role, and after an appropriate handover period with Rajesh Verma, Muir will take responsibility for the Engineering & Consulting Services business within ECOM, which includes our engineering service centres in Woking, India, Malaysia and Indonesia, and Plant Asset Management.
Talking to Petrofacts, Muir said: “I am delighted to be coming on board at a time when the new ECOM organisational structure is becoming fully operational. Whilst I am looking forward to settling into the Sharjah offices and gleaning Rajesh’s wisdom, I will be mobile around Petrofac’s ECS locations getting to know and understand all the teams. Petrofac has a strong reputation and I look forward to leading ECS in playing its part in upholding and developing the business capability, capacity and our performance into the future.”
Woking
Martin Barnes
Plant Asset Management
Roger Smith/ Geoff Baker
Mumbai
Anil Borkar
Chennai
KRSR Krishna
Engineering & Consulting Services
Craig Muir
Delhi
BP Gupta
Malaysia
Rozali Ahmad
Indonesia
Murugan Pitchai
Technology
Geoff Nesbitt
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Petrofac’s recent organisational development has created two new divisions: Integrated Energy Services (IES) and Engineering, Construction, Operations & Maintenance (ECOM). The latter comprises Onshore Engineering & Construction (OEC), Offshore Projects & Operations (OPO) and Engineering & Consulting Services (ECS). Within Engineering & Consulting Services there are seven distinct service lines: Petrofac Engineering & Consulting Services (Woking), Plant Asset Management Limited, Mumbai, Chennai, Delhi, Petrofac Engineering Services (Malaysia) and Technology.
In this issue of Petrofacts we talk to Martin Barnes, general manager for ECS (Woking), about his new role and the way forward.
Engineering & Consulting Services, WokingThe plan going forward
NameMartin BarnesTitleGeneral manager, Engineering & Consulting Services (Woking)LocationWoking
Can you give us an overview of the ECS (Woking) business?ECS (Woking) operates as Petrofac’s centre of engineering excellence providing high-calibre engineering resources and technical assurance services across onshore and offshore oil & gas, renewables and Carbon Capture & Storage (CCS) sectors. Our business is primarily about reimbursable engineering services with limited risk profile; as such, we aim to complement and support rather than compete with other parts of the Petrofac group.
What is your future vision for ECS (Woking)?I am committed to developing ECS (Woking) as the centre of technical excellence for early conceptual and FEED activity; and enhancing our current engineering, procurement and project management services. In doing so, I am confident we will be able to service both the growth aspirations of IES, OPO and OEC and the broad range of external customers in the offshore and onshore oil & gas and new energy (renewables and CCS) sectors.
What does success for ECS (Woking) look like? Success for ECS (Woking) means the delivery of a robust, sustainable and profitable business that adds significant value and delivers strategic positioning for the wider group. This means:
• getting the basics right – sustainable growth (c. 20% per annum), improved financial performance and strategic positioning during the early phases of the project lifecycle
• resource expertise – developing and retaining a high-calibre, diverse resource base for onshore and offshore oil & gas and new energy related projects
• focus on external sales – achieving a sustainable model where c. 60 – 70% of revenues are derived from external customers in parallel with internal project support
• internal relationships – driving a more collaborative, open and transparent working relationship with other parts of the Petrofac group
What do you consider to be major challenges for ECS (Woking) going forward?The primary challenge facing us all is attracting and retaining the resource capability necessary to service both our internal and external customers in what is a highly-competitive market. Specifically we need to develop a larger critical mass of offshore and new energy expertise to provide the requisite capability and credibility in these markets. As important is the need to strengthen our brand and improve the visibility of ECS (Woking) activities to the external market. Petrofac has a very ambitious, compelling and innovative story which needs to be articulated in the context of Woking’s engineering services offering much more forcibly.
What are the main priorities for ECS (Woking) in 2012?The ambition and scale associated with IES’ expansion plans present both challenges and opportunities for ECS (Woking). The IES dimension of Petrofac’s business provides significant impetus to our own recruitment plans, allowing us to offer a unique mix of engineering activity that will continue to attract the best engineering resources possible.
In parallel, the rapid expansion of our sales and proposals capability is central to providing greater access to the external market, enabling us to deliver a strong pipeline of North Sea and international offshore and onshore project opportunities. Also key is the continuing development and expansion of new engineering offices in priority markets, such as Nigeria, Algeria and Houston. What is the long-term growth strategy for ECS Woking?Our strategy is to establish the Woking office as the technical centre for both onshore and offshore engineering. The creation of the new IES ‘technology centre’ in Woking at the start of 2012 presents an exciting opportunity to realise closer integration between subsurface and facility activities, particularly during the early phases of project evaluation. In addition, we plan to target multiple small/specialist acquisitions in the next two years to expand our specialist capability and provide greater market access, specifically in areas such as subsea and pipelines and new energy.
I am committed to developing ECS (Woking) as a centre of technical excellence for early conceptual and FEED activity, to enhance our current engineering and procurement and project management services capabilities.
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HSSEIA
An important part of this focus involves making sure that our employees understand the steps that they can each take, both within their personal and professional lives, to reduce their impact on the environment.
Four years ago, Petrofac developed Environment Month; an annual, month-long programme of internal and community-based events, which encourage staff to adapt their daily habits to reduce the impact they have on the environment. At the time, eight Petrofac sites and offices took part in the initiative.
Since 2008 the Company has continued to grow, and so too has our Environment Month initiative. This November, employees from 17 sites and offices took part in a range of events and activities following the theme of sustainability.
“Environment Month has gained real momentum in the four years since it was launched”, comments Roger Carter, group head of environment. “The initiative forms an integral
part of our environmental strategy, and continues to generate a significant amount of interest and enthusiasm amongst Petrofac employees.
“In the last four years, our staff have planted more than 6,000 trees to help stabilise soils and reduce erosion, installed birdhouses in support of endangered species, cleaned several kilometres of beach, provided educational opportunities to hundreds of young people, and in certain areas of the group reduced the percentage of waste that goes to landfill by over 80%.
“The benefits of this programme go way beyond Petrofac, and will continue to be a very important part of the Petrofac calendar. My thanks and congratulations on the effort made, go to those who took part in the initiative this November.”
Further details about the activities which took place during Environment Month 2011 can be viewed by employees on our group intranet site, PetroNet.
A selection of photographs taken by Petrofac employees during Environment Month 2011.
Petrofac employees continue to improve environmental performance A high level of environmental performance is an important priority for the Petrofac group. It is fundamental that we carry out our operations in a responsible manner, minimising the impact we have on the environment and contributing to its preservation within the communities in which we operate.
ENVIRONMENT MONTH ART COMPETITONThis year’s Environment Month culminated in the judging of our third group art competition for children. Congratulations go to the winning entrants:
I Moh Ihsanul Fikri (5) from Malaysia
Carolyn Mariam Thasakan (9) from Sharjah
Olesya Moiseyanko (13) from Kyrgyzstan
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NameStuart Walker TitleGroup HSE manager – Horizon ZeroLocationAberdeen
For those who may not be aware of Horizon Zero, can you describe the initiative?Horizon Zero is Petrofac’s safety campaign and it aims to reduce, ultimately to zero, the number of incidents that affect people within Petrofac. We have built upon the original Horizon Zero strategy, which was developed in 2005, to reflect the needs of a much larger, more diverse Petrofac group.
A fundamental part of the Horizon Zero campaign is Petrofac’s eight Golden Rules of Safety. These rules were established following a study of fatal accidents in our industry which found that if eight basic rules were followed the vast majority of those accidents could have been prevented.
You have been with Petrofac for a number of years, and recently moved into the role of group HSE manager – Horizon Zero, tell us a bit about your new role.I am responsible for driving awareness of Horizon Zero. There is a lot of good work going on throughout Petrofac to maintain a strong safety culture; my aim is to support these local initiatives by providing materials, running workshops and making sure that we share our knowledge and experience throughout the group.
What will your focus be for 2012?I am currently visiting different areas of the group to roll out our new Golden Rules DVD, and deliver Horizon Zero workshops. Driving safety, which poses the biggest safety risk to our employees, also continues to be a key focus for 2012.
We hosted our inaugural annual Safety Managers’ Forum in September, which gave us an opportunity to get our safety professionals together to network and share their experiences. A number of outputs and suggestions that will help us as we strive to achieve our Horizon Zero target arose from the Forum and will be implemented in 2012.
You mentioned our new Golden Rules DVD. How can employees view this?The film can be found on PetroNet, along with lots of other Horizon Zero information. We have produced the film in a number of languages. If anyone has any further queries they can email me at [email protected].
A big part of Horizon Zero is about taking responsibility for your own personal safety, as well as the safety of those around you. Understanding and implementing the eight Golden Rules of Safety is a big part of this, and something which I urge all Petrofac employees to do.
DRIVING HORIZON ZEROAs we enter 2012, Horizon Zero will continue to play a very important part of everyday life at Petrofac. Petrofacts caught up with Stuart Walker, to find out more.
Walkers were invited to log the steps recorded on their pedometer on a specially designed online portal. By recording steps on a daily basis, each walker received a ‘virtual postcard’ of the equivalent distance they would have travelled and a series of health or environmental tips to inspire them to walk that little bit further. One team captain, Ailsa Kerr, based in Aberdeen, commented on the initiative: “It has been great fun and I have really enjoyed the challenge. It’s been surprising, and at times very competitive, watching the step totals rise! It has certainly made me think twice about sitting at my desk at lunchtime, and I hope to continue with this simple approach to fitness in my everyday life.”
Top TEAMS by AVERAGE MilEAGE pER pERSon, pER dAy
1Piping Joggers, India15 miles
2Chitas, India13 miles
3Young Civilian, UAE8 miles
Top wAlkERS by ToTAl MilEAGE
1Amit Kumar Tanwar, India819 miles
2Gunesh Hirve, India742 miles
3Sukhbir Goyat, India654 miles
Top TEAMS by ToTAl MilEAGE
1Piping Joggers, India4,548 miles
2Chitas, India3,304 miles
3The 8, India2,391 miles
From Singapore to Shetland, Abu Dhabi to Aberdeen, almost 3,000 individuals formed 605 teams of walkers who collectively clocked up over 294,000 miles! This staggering distance is the equivalent of walking approximately 12 times around the world – wow!
In celebration of our 30th anniversary, colleagues in various locations across the group were challenged to clip on a pedometer and virtually walk the world.
As each step was logged on the portal, competition across departments and locations grew! Debasish Deb based in Sharjah commented: “The day Walk the World started, everywhere is walking distance for me! This challenge has really changed my lifestyle. Daily morning walks are no longer optional, they have become mandatory! I hope to maintain these fun changes as part of my family’s life.”
Congratulations to the Piping Joggers based in India who walked a staggering 4,548 miles coming top of the team league table. This is the approximate equivalent distance of walking from Mumbai to London.
Amit Kumar Tanwar, based in India, walked an impressive 819 miles to earn his position at the top of the individual’s league table, this is the equivalent of walking from London to Rome which is a very notable accomplishment.
Internal communications co-ordinator and initiator of the Walk the World challenge, Karen Slupinski, commented: “Congratulations to everyone who took part in the Petrofac Walk the World challenge. It has been fantastic to see enthusiastic groups of people coming together to get to know each other better whilst improving their fitness.”
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January 2012
GROUP SECURITY
Supporting a growing business in new geographies
As we enter 2012 Petrofacts caught up with the group security team to find out how the turbulent events of 2011 have impacted their work.
The following comments from Petrofac’s group security team highlight the greater appreciation of the influence the changing international business environment has on the organisation’s security imperatives.
PetroGuard is Petroac’s standard for security initiative
NameOliver PiercyTitleGroup head of securityLocationLondon
NameGareth Bowers TitleGroup security manager (Operations)LocationSharjah
The turbulence of the last 12 months has resulted in the team working very closely with the business, providing advice and guidance to support informed business decisions including the down-man of personnel in a number of locations during the height of the regional troubles. During the same period, following contract awards, we have been planning and executing projects in new areas such as Iraq, Mexico and Nigeria, each presenting their own particular challenges. Using our dedicated field security consultants we are also looking to form a bridgehead that will enable future operations for Petrofac in post-revolutionary Libya and Egypt.
Working with proposals teams we have been particularly successful in managing security costs in complex environments through a careful cost-optimisation process led by an innovative approach to local solutions. By reducing costs without compromising the robustness of our security coverage we have been able to ensure that our tenders are as competitive as possible. In some locations, our country and project security managers are also providing a lead in establishing good working relations with community figures while helping to develop local social investment plans.
The safe transportation of people, materials and equipment to our project sites is key to maintaining continued operations and completing challenging schedules. On sites where the security risks are known to be high, journey management is also being managed through the security function, ensuring that the correct measures are in place to effectively protect both our people and assets.
Through a developing structure of highly qualified and experienced security professionals, we are successfully facilitating business development while providing close operational support to all business units as Petrofac continues to grow and expand into new and challenging environments.
2011 was an eventful year for the security industry. The global economic downturn continued to place additional pressure on already strained societies, leading to an increased incidence of unrest globally. The after effects of the ‘Arab Spring’ in the Middle East and North Africa continue to be felt across the region with no countries having yet completed a transition to a more widely accepted form of governance. Given such continuing political and social unrest and its impact on the evolving security landscape, ‘vigilance’ must remain of prime importance in underpinning everything we do in support of the Company’s commercial enterprises.
Across the Petrofac group we have been strengthening our security capabilities both in terms of manpower and systems. Our rapid growth and penetration into new markets has been the catalyst for these necessary security developments. Working in close collaboration with our business units we are able to facilitate early entry into potentially difficult environments, effectively overcoming operational challenges. We are already seeing the benefits of these security innovations in our Mexico, Iraq and Nigeria ventures.
...‘vigilance’ must remain of prime importance in underpinning everything we do in support of the Company’s commercial enterprises.
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Group security organisation
Operational reporting line
Functional reporting line
Business unit security Group security Country security
Business unitmanaging directors
Project/facilityHSSE managers
Business unitHSSE directors
Group securitymanager (Risk)
Group securitymanager (Operations)
Countrygeneral manager
Countrysecurity managers
(where applicable)
Business unitsecurity managers
Project/facilitysecurity managers
Group headof security
NameRyan Krause-Whiteing TitleGroup security manager (Risk)LocationSharjah
We have developed a custom framework for managing the security of our personnel and assets across all our business units. This framework and the suite of supporting systems, tools and documentation are known collectively as ‘PetroGuard’. Addressing all phases in a contract lifecycle, it is based around security best practice and is consistent with the requirements of BS ISO 31000:2009 risk management – principles and guidelines. This framework is already providing increased assurance to the business in respect of the management of security on projects and at operating facilities. As it matures it will provide complete transparency for project, business unit and senior management regarding the status of security management at each Petrofac facility and project.
The framework comprises 11 critical elements to form a comprehensive security management system and is reflected in the recently released Group Security Management Standard. Providing an authoritative reference point for our business units, the standard elaborates on each element, defining the underlying principles, expectations from business units, and standard practices for managing security in all our business activities.
The standard is risk driven in that the expectations and practices required to be met are commensurate with the operations and travel risk state for each location. Underpinning this is ‘ARGUS’, Petrofac’s bespoke security risk ready-reckoner for calculating the security risks present in each country. Drawing on input from more than 15 separately published indices, as well as live intelligence, ARGUS uses six key threat indicators to identify significant risk areas and determine the appropriate risk treatment measures, these are:
• conflict potential
• political stability
• crime
• bribery and corruption
• kidnap
• terrorism
The group security team has already begun a security ‘road show’ raising awareness and communicating the support capabilities of the function and providing clear guidance to business units and projects on the requirements of the standard and what that means in practice during contract execution.
Our travel security support service has also been broadened to include the development of a comprehensive ‘watch list’ of countries of interest to Petrofac. The travel security risk state for each country is reviewed and published weekly along with a suite of travel advisory notes for each country containing key information for travellers. Furthermore, we provide a 24-hour security support facility, where a dedicated helpline has been set up with the emergency response service centre operated by Petrofac’s Training Services business. Providing access to group security personnel, the service allows security situations to be addressed and managed promptly.
The group security team has already begun a security ‘road show’ raising awareness and communicating the support capabilities of the function and providing clear guidance to business units...
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January 2012
NameEd Bassett TitleBusiness development managerLocationLondon
IES strategy in action
Can you provide an overview of the project?Petrofac has screened a significant number of North Sea discoveries over the past 12 – 18 months with a focus on finding a suitable asset(s) to deploy the FPF1 either through a standard FPSO lease agreement or through an innovative co-investment structure. Under the arrangements with Ithaca for the GSA, Petrofac has agreed to sell 80% of the share capital in the company holding the FPF1 vessel to Ithaca Energy Inc and Dyas BV.
In addition, Petrofac will acquire a 20% interest, from the other co-venturers in the Ithaca operated GSA development consisting of three UKCS licences. The GSA development initially includes the Stella and Harrier fields; and subject to further pre-development work this could incorporate the development of the Hurricane and Helios discoveries.
NEW DEVELOPMENT
Integrated Energy Services (IES) signed an agreement in October that will see the acquisition of various UK North Sea licence interests in the Greater Stella Area (GSA). This contract signals Petrofac’s return to investing in the UK North Sea following the successful demerger of the Don’s assets in 2010. IES also signed an agreement for the deployment of the FPF1, a floating production facility, on the GSA. Petrofacts spoke to Ed Bassett, lead business development manager for the project, to find out more.
Petrofac is a world class provider of engineering and operational services with a reputation for delivering value in the North Sea and I am delighted to be welcoming the company into the heart of the Greater Stella Area development, not only as a provider of key services during the execution phase of the project, but also as a co-venturer within each of the fields.” Iain McKendrick, chief executive officer of Ithaca.
How does the commercial structure of the deal work?The completion of the transfer of equity in the FPF1 will be completed in Q1 2012, whereas, due to UKCS licence requirements, the Stella and Harrier field equity position will complete at first oil, expected in the second half of 2013. The transfer of an interest in Hurricane and Helios licences will take place in Q1 this year. IES will fund 20% of the Stella and Harrier integrated development project and also 20% of the FPF1 conversion, the total of which is in the region of US$1 billion, and achieve alignment with its partners through this combined project equity and service provision structure.
Why was the FPF1 a good fit for this development?The FPF1 was acquired by the floating production team which sits within the IES Developments business unit headed by Rob Jewkes, with a focus on opportunities in the mature UKCS environment. We have been targeting discovered and appraised fields which would benefit from a standalone production facility and providing the equity owners with the opportunity to maximise the potential of their acreage.
The FPF1 will undergo various modifications in order to be able to process 85 million standard cubic feet per day of gas, 38,000 barrels of oil per day, with 6,000 barrels of water handling and six million standard cubic feet per day of gas lift once operational and it will be capable of operating for a 15 year field life.
Will any other parts of the Petrofac group be involved in the project?An integrated team – from IES in London including floating production and an Offshore Projects & Operations (OPO) team in Aberdeen – worked together in order to negotiate the numerous contracts now in place to structure the deal.
The service capabilities of Petrofac’s OPO business will be utilised further as the team will carry out modification and upgrade works to the FPF1 ahead of its deployment on the development. This will be a first for Petrofac in the UKCS.
Petrofac will subsequently provide Duty Holder services to the FPF1 on a life of field contract showing the truly integrated and unique offering that Petrofac can bring to projects.
What are the next steps for the project?At the time of writing, the front end engineering design (FEED) has commenced on the FPF1, which is due for completion in April 2012.
The Stella owners have secured a drilling rig and are in the process of submitting a field development plan (FDP) to the UK Department of Energy & Climate Change (DECC).
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FPF1 being towed, image courtesy of Borowski Hess
“I am delighted to announce the deployment of the FPF1 as a further step in the delivery of Petrofac’s Integrated Energy Services strategy. The equity position and associated capital investment (including Petrofac’s share of the associated facilities and of the modification and upgrade costs of the FPF1) of approximately US$200 million in the Greater Stella Area creates alignment with our partners. It also provides Petrofac with access to resource upside and a new production hub with the potential for additional third party tie backs. We look forward to establishing a long and successful relationship with Ithaca and its partners on this development.” Andy Inglis, chief executive of IES.
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January 2012
EVE AWARDS 2011
Petrofac’s inaugural EVE Awards ceremony was held during the group’s 2011 Leadership Conference in Abu Dhabi on Wednesday 23 November.
A total of 17 individuals and teams shortlisted within the categories of safe, ethical, innovative, cost-conscious and responsive to customers, attended the ceremony. Here we take a look at the winners and their achievements.
ADCO ASAB static E&P teamADCO ASAB project,Engineering & Consulting Services
Following the award of the ASAB contract in 2009, this cross-departmental team worked to ensure that maximum cost savings were gained on fabricated equipment, whilst ensuring quality of engineering deliverables and mitigation of any risk. As a result of the team’s efforts, an estimated saving of over US$15 million was achieved.
The judges were impressed that the team had undertaken intensive vendor reviews and challenged conventional thinking in order to significantly reduce cost on the project.
Frank CairneyOffshore installation manager,Kittiwake, OPO
Following a review of the Kittiwake Safety Case, Frank recognised that the major accident hazard (MAH) information that was being distributed during safety meetings on the platform was failing to engage personnel. Working to the mantra that ‘knowledge enhances safety’, Frank used his spare time to redraft materials, simplify presentations, develop a themed safety initiative and created a workforce involvement group, all with the aim of raising and sustaining awareness of MAHs. The Health and Safety Executive regarded Frank’s efforts as being best in practice.
The judges felt that Frank had gone “way above the norm”, and noted that the benefit of the work he undertakes, goes beyond Petrofac.
Raj Tilak Technical specialist,Engineering & Consulting Services
When the soil bearing capacity of the El-Merk site did not meet design criteria, Raj was responsible for identifying a suitable technical solution. Having researched all possible options, including relocating the site, Raj identified that a ground improvement measure known as dynamic compaction, would provide a sound, environmentally friendly resolution, and set about gaining buy-in from his customer and the relevant national regulatory bodies to use the technique. This was the first time Petrofac had used dynamic compaction. The technique has subsequently been used on the South Yoloten site.
The judges noted that dynamic compaction is not widely known within our industry and its use on this project was therefore thought to be forward thinking.
Recycling project teamCross discipline team,OPO and group design
OPO’s office services and communications teams, along with the support of the group design team, were responsible for introducing a recycling programme which reduced land-fill waste from Petrofac’s Bridge View office by more than 80%, and reduced annual costs by around £110,000. The recycling project team worked to transform the way in which rubbish is disposed of, by removing all bins from the building and creating a fixed recycling point within each department.
A range of communications materials were produced to engage employees and additional complementary recycling schemes have since been introduced. The judges noted this initiative as best-in-practice and it is now being considered for other areas of the group, creating a new benchmark for recycling programmes.
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Congratulations also go to our very deserving EVE Awards finalists...
SAFE:
Ashish NawadeProject engineering manager, Onshore E&C
ETHICAL:
PetroEvents teamOnshore E&C, Engineering & Consulting Services and Corporate Services
Team MarathonCross discipline team, Engineering & Consulting Services
INNOVATIVE:
Kauther project teamKauther, Onshore E&C
Sajaa Asset production delivery team and Eclipse PetrotechSajaa Asset, OPO and Eclipse Petrotech
COST-CONSCIOUS:
ADCO ASAB instrumentation teamADCO ASAB project, Onshore E&C
Suresh RamanSenior Designer, Engineering Services
RESPONSIVE TO CUSTOMERS:
Gillian KimberProject Engineer and Interface Manager, IES
Petrofac Romania,Ticleni PEC teamTicleni, Production Solutions
Sajaa transition teamSajaa Asset, OPO
Kerkennah Islands safety and security teamChergui Gas Field, IES
The Kerkennah Islands safety and security team was responsible for managing safe operations during a period of civil unrest in Tunisia. As well as taking steps to manage the safety of personnel, the team worked to manage community relationships, and deliver and sustain production beyond expectation.
Adel Badreddine General manager,Kyrgyz Petroleum Company, IES
During the Kyrgyzstan revolution in 2010, rioting broke out and armed gangs destroyed and looted buildings throughout the region. Adel Badreddine, general manager of the KPC refinery in Jalalabad, arranged for expatriate staff to be evacuated, whilst he remained at the refinery with security personnel to ensure US$5.5 million worth of inventory and products were not stolen or destroyed.
ACKNOWLEDGEMENTS...Participation in the EVE Awards has been extremely encouraging for the programme’s first year. This would not have been possible without the support of the EVE steering committee, our senior management teams and corporate and regional communications teams, so thank you.
Special thanks also go to our regional and central judging panels who gave willingly significant time and effort to make this initiative possible.
SPECIAL COMMENDATION
Two EVE Award applications really stood out during the regional and central judging process. The judges felt that the commitment displayed by these applicants during exceptional circumstances was noteworthy, and given the nature of their achievements, took the decision to create this Special Commendation category. The following applicants won a Special Commendation Award:
Ebla Gas project task force teamEbla Gas Plant project, Onshore E&C
The Ebla Gas project task force team took an integrated, team approach with their customer and subcontractors, in order to complete their project two months ahead of schedule, and having achieved 10 million man-hours without an LTI; winning great plaudits from their customer, Petro-Canada. The judges described this as a “model project”.
January 2012
NEW DEVELOPMENT
Petrofac secures asset management contract with Queensland Gas Company
Petrofac’s Plant Asset Management arm has recently been awarded a £1.4 million contract with the Queensland Gas Company (QGC), a wholly owned subsidiary of BG Group, which will see Plant Asset Management play a significant role in the Queensland Curtis Liquefied Natural Gas Project (QCLNG).
QCLNG is QGC’s project for the development of upstream coal seam gas, pipeline infrastructure, central processing units, and a two train liquefaction facility on Curtis Island.
Plant Asset Management will build the work management system (WMS) for the liquefaction facility that will form a key part of QGC’s operations readiness plan in the run up to commissioning and first gas, and will ensure safe and reliable operations thereafter.
Steve Johnson, operations director for Plant Asset Management said: “This project demonstrates the quality of our suite of tools, methodologies and our experienced staff which enable us to create a best-in-class and sustainable WMS.”
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Four years LTI-free at Chergui
Petrofac’s Chergui operation in Tunisia reached the milestone of four years without a lost time incident (LTI) in November last year.
Bill Jack, general manager for Tunisia, congratulated the team: “On behalf of our partners ETAP, well done to everyone who has worked vigilantly to reach the exceptional achievement of four years incident free. This is evidence of our continued commitment to safe reliable operations and I encourage you to keep up the good work.”
The 170 sq km concession straddles both offshore and onshore locations and consists of two producing wells and a central processing facility (CPF), situated on Kerkennah Island approximately 30km east of Sfax. Petrofac has operated the development since 2007.
NameBill JackTitleGeneral managerLocationTunisia
Petrofac achieves first oil on SEPAT offshore early production systemPetrofac, the international oil & gas services provider, and its partners Kencana HL and BurmiAramada confirm that first oil has been achieved at the SEPAT offshore early production system on the East coast of Peninsular Malaysia for its customer PETRONAS Carigali Sdn Bhd.
The project, valued at approximately US$280 million, has involved the engineering, procurement, construction, installation and commissioning (EPCIC) for the full scope of the early production system in a water depth of approximately 65 metres. The EPCIC comprises a mobile offshore production unit, and a floating storage and offloading facility for the early production of approximately 20,000 barrels of oil per day, together with all interconnecting subsea pipelines.
Murugan Pitchai, senior vice president & general manager for Petrofac’s Engineering, Construction, Operations & Maintenance (ECOM) division commented: “To have achieved first oil ahead of schedule on our first lump-sum offshore EPCIC in South East Asia is testimony to the combined efforts from our ECOM and Integrated Energy Services teams along with our partners and not least the keen interest and involvement from PETRONAS.”
Teh Yat Hong, general manager, PETRONAS Peninsula Malaysia Gas Project PETRONAS Carigali Sdn. Bhd. reflected: “2011 was a very exciting and rewarding year for all of us here in the SEPAT project. Under strong leadership, we enjoyed excellent professionalism, co-operation, teamwork and understanding amongst us all.”
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Why is the Asab field so important?This full field development will increase production and achieve 600,000 barrels of oil per day. The project is a mega scale development and involves large construction quantities spread over a geographical area of 40 x 20km. The central degassing station facility alone covers an area of 2.5km.
That is a significant scope of work so, how are things progressing?The project is going very well: overall progress is currently around 82% and construction activities are around 60% complete. With around 13,000 workers on the project, we have come a long way since we kicked off the project with just five people on site! We faced and still face many challenges ahead, but with the strong will and dedication of our team, and a highly communicative relationship with ADCO we are confident that we will deliver to expectation.
Safety is a priority for both Petrofac and ADCO. Have you had any particular successes or disappointments in this area from which positive outcomes have been achieved? A major success was the achievement of 25 million man-hours without LTI. We maintain constant focus on work being executed safely, field inspections and site awareness campaigns
with very visible management contributions from both Petrofac and ADCO.
On site, we currently have more than 20 direct subcontractors from a number of countries and workers encompassing 30 different nationalities. Some arrive with little or no previous experience in our industry nor awareness of the inherent risks.
Our site leadership, along with ADCO, has implemented a variety of themed safety programmes with an emphasis on behavioural safety. These are presented in multiple languages and underpinned by incentive schemes to enhance engagement. To give an idea of magnitude, in 2011, we scheduled roughly 4,000 site inspections, task risk analysis and safety checks, each with a specific theme and area, such as awareness campaigns for operators and drivers on the project; this is particularly important as the number of equipment and vehicles on the project have exceeded 2,200.
As we know, the weather in the desert of the Emirates can reach extremely high temperatures, particularly in the summer months. How do you overcome this factor and maintain progress of the work on site?High temperatures, frequent sand storms, fog and low visibility are all conditions we have to deal with and have anticipated. Starting work early, night shifts and extended mid-day breaks are among some of the solutions we have.
Furthermore, we are able to mobilise additional manpower and equipment should we need to put in place any specific mitigation measures due to the environmental factors.
The ASAB project is one of the largest projects to be awarded to Petrofac in the region. Has this solidified the relationship between Petrofac and the ADNOC group of companies?I meet regularly with ADCO’s shareholder representatives and, without exception, everyone involved understands that in order for this mega development to succeed we need to have solid relationships and common objectives. I can say that they have portrayed a pragmatic and progressive approach in extending all the support needed to achieve those goals.
What is the next significant milestone for the project?Our main objective as a team is to complete this project safely, that will take another year of continuous focus and improvement along with the utmost vigilance from our team and subcontractors. Another milestone is to achieve 70% completion of construction by end of 2011 but that is a challenge we look forward to.
ABU DHABI PROJECT UPDATE
In January 2009 Petrofac announced the award of the US$2.3 billion contract by Abu Dhabi Company for Onshore Oil Operations (ADCO) for the development of the onshore Asab oil field. Three years into the 44-month project Petrofacts catches up with project director, Ayad Chammas to find out what’s been happening.
Asab full field development project
NameAyad ChammasTitleProject directorLocationAbu Dhabi
600,000barrels of oil per day full field development will achieve
13,000approximate number of workers deployed on the project
25,000,000man-hours achieved without an LTI
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January 2012
BUSINESS UPDATE
Expanding our offshore capabilitiesIn 2011 Petrofac committed to more than doubling our 2010 recurring profits by 2015; taking our offshore experience into the international EPIC market is one of the ways we will achieve that target. Petrofacts spoke to Bill Dunnett, managing director, Offshore Projects & Operations (OPO), one part of the new ECOM division to find out how this part of the business will adapt to meet the challenge set by the group.
How will Offshore Projects & Operations differ from Offshore Engineering & Operations (OE&O)?OPO is an international business focused on offshore engineering and construction projects including EPIC (engineering, procurement, installation and construction) contracts and the provision of operations management and maintenance services. We are not moving away from our traditional business, but we are enhancing and growing it geographically, organically and technically to take advantage of a growing market sector. Petrofac recognises the opportunities available in the offshore EPIC market and that OPO’s offshore experience is the route into it. Whatever we do however, we must maintain our focus on safety and integrity (in all senses of the word) and in that respect we will continue to ensure safe and secure operations in the way we always have.
What will the new business look like? We will continue to have two service lines: operations, led from Aberdeen by Steve Bullock and offshore projects led by Doug Callum in Europe and West Africa, Ed Gedeon in the Middle East and Murugan Pitchai in Asia Pacific. Steve’s operations business will continue to expand geographically in the Middle East under Mani Rajapathy and Asia Pacific under Roy Armishaw. This is in addition to the new teams we have set up in Sharjah and Kuala Lumpur under Ed and Murugan respectively to lead the offshore projects growth in these areas.
...our challenge will be to successfully maintain safe operations whilst we grow the business. It is not acceptable for us to let our standards slip...
What does the business need to do in order to achieve these ambitious growth targets? The growth we are looking at between 2010 and 2016 is significant and it won’t just happen through organic growth alone. We will start to look at small acquisitions and strategic partnerships to enhance our offshore project capabilities whilst taking the opportunity to further exploit the new energy sector and decommissioning. We will also build on our experience in floating production.
We’ve talked about our commitment to the North Sea a lot recently. Given the international focus of OPO is that really still the case? Absolutely. The operational and support centre for OPO will still be Aberdeen and the North Sea remains a key market for us and we are very well known here. We will continue to go after Brownfield modifications, operations, maintenance and EPIC projects – in all of which there are many more prospects. And of course the offshore wind and decommissioning opportunities in the North Sea are significant.
The announcement of our £30 million three-year contract win with GDF Suez E&P UK was a great example of our continued commitment to the area. It’s a new relationship and will generate around 100 jobs over the course of the contract whilst also making the most of the incredible experience we have in the teams based in Aberdeen and Great Yarmouth. So yes, we are still very much committed to the North Sea.
What are the key things that OPO and the people that work in OPO need to do to achieve the step change that will result in this growth? It’s not just about winning EPIC contracts, is it? No it’s not; behavioural changes are required as well. Fundamentally, Petrofac identified a need to change its approach. Traditionally we’ve worked in silos, insulated within our business units and we were almost competing with one another. With the introduction of our Integrated Energy Services division [IES, incorporating our Production Solutions, Developments and Training Services business units] there is a much greater opportunity to collaborate and provide our customers with all encompassing ‘life of asset’ services. We’ve already been working together successfully on the Berantai and SEPAT contracts, we recently announced our partnership in the Greater Stella Area for Ithaca and we’ve appointed a focal point to work across OPO and IES – we’re taking this new approach very seriously.
We’ve also been developing a closer relationship with our colleagues in Engineering
NameBill Dunnett TitleManaging director, Offshore Projects & OperationsLocationAberdeen
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& Consulting Services (ECS) in Woking. The team there is an engineering centre of excellence capable of serving the Petrofac business and external customers. We need to make the most of their significant FEED and conceptual design capabilities as well as their strategic position – they get involved with projects in the very early stages which creates an opportunity to engage OPO early on in the project too so it makes sense for us to be working closer together.
Growth such as this can be a lot of hard work. What’s in it for individuals working in the business today? OPO is a growth driver for Petrofac – it’s our chance to really step out and bring more to the table in terms of income and profit. For those who’d like to take them, this results in opportunities to move around the business, to travel, to develop their careers. Ultimately, I hope everyone in OPO feels proud to be part of such a successful business.
What will be our biggest challenge going forward as OPO? We need to get better at telling the story and encouraging people to come and work at Petrofac. We all have a responsibility to sell Petrofac and I encourage everyone to think of someone they believe would be a perfect fit for us and let them know it. This is in an incredibly exciting business to be a part of and we need to get that message out there.
More importantly, our challenge will be to successfully maintain safe operations whilst we grow the business. It is not acceptable for us to let our standards slip whilst we make these changes. Though the future for OPO is different from its past, as far as our current projects and contracts are concerned we will continue to deliver safe operations whilst we prepare our business for future growth.
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January 2012
UAE employees donate generously to humanitarian efforts
Senior representatives of the Red Crescent visited the Sharjah office to receive the donation which will be used to support the ongoing humanitarian and aid programme for victims of the famine. Somalia is experiencing its worst drought in 60 years with hundreds of thousands of people suffering. Fortunately, the ‘world’ is responsive in the wake of natural disasters and our employees have demonstrated extraordinary compassion and support to this one. Such generosity is by no means unique with ’PETROcare’ having supported victims of the Haiti and Indonesia earthquakes, typhoons in the Philippines and flood victims in Pakistan to name just a small number.
Not quite on the scale of the Somali crisis and much closer to home, during Ramadan Petrofac sponsored Action Care’s English Live programme. Petrofac’s employees also volunteered their time generously to the workshops, run for children between the ages of 6 and 12 and teenagers aged 13 to 17. The programme focused on strengthening students’ foundational English conversation skills, introducing and practising effective communication strategies, and boosting students’ personal confidence and motivation to study English. English Live instructors, Petrofac volunteers and students alike enjoyed the high-energy atmosphere, and instructors and volunteers watched the students grow in confidence and motivation as they explored English communication through role-play, public-speaking exercises, story-writing and games.
Action Care is based in the UAE, supporting a diverse range of educational development and aid projects both in the UAE and throughout the region which aligns perfectly with Petrofac’s CSR objectives.
CORPORATE SOCIAL RESPONSIBILTY
In the wake of the Somali crisis, Petrofac employees from locations around the United Arab Emirates combined forces and raised more than US$88,000 – the largest collection ever raised under its PETROcare initiative.
NameMarcelo CardosoTitleGroup head of complianceLocationLondon
Committed to complianceAt the end of 2010, Petrofac launched its Standard for the Prevention of Bribery and Corruption. One year on, Marcelo Cardoso, group head of compliance, provides an update.
CORPORATE UPDATE
Close to 2,000 Petrofac people deemed to be more exposed to the risk of bribery and corruption have received training on the standard
Throughout the last year, close to 2,000 Petrofac people deemed to be more exposed to the risk of bribery and corruption have received training on the standard, which is now an integral part of our induction programme. In doing so, we have achieved greater awareness across our diverse organisation of what is required of all of us as employees to protect ourselves, and Petrofac, as a growing global brand.
As we enter 2012, we aim to continue to build on this success by further embedding best-in-class risk mitigation tools; whenever possible in already existing processes – such as due diligence of third parties – and, when necessary, by creating new tools that will help our group abide by the standard; such as our gifts and entertainment register.
Our Code of Business Conduct, which sets out the behaviours expected of Petrofac people, our suppliers, contractors and agents, will be refreshed this year. A code of conduct needs to be periodically reviewed in order to ensure
that it represents best practice in corporate governance and effective guidance on the areas of risk that a company faces. As part of this exercise we will also continue to assess the effectiveness and accessibility of ‘Speaking Up’ – our confidential and free system which enables employees and third parties who know, or have genuine suspicions, of any breaches of our Code to report such matters by calling or emailing an independent operator trained to record and bring to our attention – on a confidential basis if so desired by the person making the allegation – concerns about ethics and compliance. Petrofac is, and remains, committed to providing its workforce and all of those third parties with whom we interact a working environment in which there is no fear to raise concerns about behaviours and practices that may be in breach of our code of business ethics or regulations.
Further details about our compliance agenda can be found on PetroNet, or requested from me at [email protected]
‘SPEAKING UP’ CONTACTS08000 565 374 from the United Kingdom800 44800 from the United Arab Emirates1800 300 84800 from [email protected]
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CORPORATE SOCIAL RESONSIBILITY
Community investment Raising our standards
NameGwen FollandTitleHead of corporate social responsibilityLocationLondon
As our geographic footprint expands increasingly into more difficult and less developed parts of the world, our relationship with local communities and the significant impact of our operations becomes ever more important. Community investment and how we engage with our communities, is therefore a critical part of our corporate responsibility agenda.
Gwen Folland, head of corporate social responsibility, explains Petrofac’s approach to community investment:
“A Community Investment Standard has been developed to provide guidance and a clearer and more structured approach for our businesses in assessing and managing our social impacts. The guidance is aimed at all those with responsibility for community investment; regional VPs, country and project managers, community affairs managers and corporate social responsibility (CSR) representatives.
What type of investment should be made for different business phases on our operations?
“Our approach to community investment is to support sustainable economic development in our host countries by:
• avoiding or minimising the negative impacts of our projects;
• establishing and maintaining effective relationships with interested and affected stakeholders;
• investing in community projects which are tailored to the needs of our local communities and are aligned with our three main focus areas: education and employment, infrastructure and enterprise;
“We will do this by:
• identifying and assessing social risks pre and post award and taking appropriate steps to mitigate our impacts through our community investment programmes;
• mapping our stakeholders into key groups, incorporating their views and ensuring that we are aligned with their expectations;
• monitoring and evaluating the impact of our investment by collecting data on all our community investment projects.
“Implementation of the standard will be carried out in 2012 as well as further development of our community investment strategy.”
Other forms of community investment
Employee volunteering: Petrofac employees can volunteer their time and skills to support local community initiatives, which are relevant to the business and subject to agreement from their line manager. All staff who volunteer time should keep an account of the hours spent, both inside and outside working hours and inform their CSR representative.
Petrofac’s ‘Payroll Giving’ scheme enables UK-based employees taxed through the Pay As You Earn (PAYE) system to make voluntary donations to any charity or voluntary organisation in a tax efficient manner. Payroll Giving will be relaunched in February 2012 for all UK staff including an online donation system.
Corporate donations are made across the group to support employee fundraising activities. Management and project leaders should encourage staff to engage in local good causes around the world and, at the discretion of the business unit managing directors, Petrofac could make a contribution, up to the amount of £500 in support of their efforts.
For more information, employees should contact their local CSR representative as listed below or myself:
CSR REPRESENTATIVES
Sharjah (and ECOM projects)Kaye Krause-Whiteing and Nahida Basu
AberdeenJilly Powell – Offshore Projects & OperationsPamela Campbell – Training Services
WokingLisa Lewis
ChennaiR Krishnan
MumbaiDnyanesh Kamath
Abu DhabiKhaled Zayed Al-Hosani and Naila Khodr
MalaysiaSiti Fatimah
COMMUNITY AFFAIRS MANAGER
IES projectsIsabel Miranda (based in London)
Long-term investments 4+ yearsProductive investments that build local capability over time. These support longer-term business objectives such as risk management, reputation, productivity and sustainability.
Example: Skills building and livelihood support.
Quick impact projects 1-3 yearsHigh visibility projects. These can be done quickly in the early stages to create goodwill, demonstrate tangible benefit and gain social licence.
Example: Infrastructure projects.
Discretionary fundsDonations fully driven by requests from the community. While often short-term and ad hoc, they allow the company to be seen as responsive to local needs.
Example: Support for local festivals and sports, or donation of supplies.
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January 2012
What do you predict the main challenges to the industry will be in the coming years?The development of a competent workforce is one of the biggest challenges oil & gas companies face during a time when experienced workers are retiring and competition for new talent is heating up. PTS aims to be the partner of choice to develop local workforces for selected NOCs and to continue to work with certain IOCs with the ambition to help create an industry recognised global framework of standards and to share best practice through the cross-fertilisation of knowledge and experience.
How has PTS worked towards achieving this goal in 2011?We have been privileged to work with a number of partners over the year with a focus on developing capability, assuring competence and delivering training. We have seen significant progress with Petronas and its training division, Instep. Since the signing of the MOU in July to support competency development for Petronas and the broader region, we are already realising the synergies of the relationship through the work undertaken at the Chemical Process Training Centre (CPTC) in Singapore. Our team has been working in conjunction with the wider IES Berantai project to deliver a job-ready and competent workforce. We delivered training to accelerate the job readiness of 22 former Instep graduates, ensuring they are job-ready at the asset commissioning stage. In addition, in order to enable Petronas to develop local capability, we have designed, built and commissioned a Safe System of Work (SSOW) training facility. Working with Petronas to create bespoke training material and help train their trainers, this facility will be operational during January for future training purposes.
We are proud to have continued to work with IOCs that are taking a global approach to workforce development. Earlier in the year we announced that we had been successful in securing a five-year contract to continue to manage the Caspian Technical Training Centre on behalf of BP with our partner TTE International. We are also working in partnership with BP in other global locations to deliver workforce competence through the management of bespoke facilities and the deployment of trainers into country to provide technician training at source.
How has PTS benefited from acquisitions and talent growth in 2011?Our acquisition of SkillsXP last year is already delivering and we are seeing integration success with winning the Seadrill contract and other business during 2011. We will be growing this area of competence management globally this year.
Other key areas include the globalisation of our Emergency Response and Crisis Management (ERCM) solutions and we have implemented this strategy though the appointment of David Evans
NamePaul Groves TitleManaging director, Training ServicesLocationAberdeen
BUSINESS NEWS
Petrofacts speaks to Petrofac Training Services’ (PTS) managing director, Paul Groves to understand his business vision.
Training Services: A year of progress and opportunities for the future
as our first global head of ERCM. David brings a wealth of industry knowledge and team members to the PTS business.
What strategic alliances have you formed this year and why?We have entered into strategic collaboration agreements with the Southern Alberta Institute of Technology (SAIT), Calgary and Robert Gordon University, Aberdeen. These will enable PTS to explore new opportunities to share information and expertise in technical training, workforce development and nationalisation programmes and to provide an advanced level of professional development training, which is an area that is increasingly in demand by customers.
Safety is a key component of the Petrofac culture, how can we best demonstrate that we are playing our part in embedding this internally and externally?Our team at the CPTC, which is a unique live hydro-carbon training plant, has celebrated with our partners (Singapore’s Economic Development Agency and Workforce Development Agency) our achievement of operating the CPTC for one million hours without any LTIs.
Other facilities have reached this impressive milestone, however, few can add that this was realised with up to 200 trainees a day on the facility, developing their competence to safely and effectively operate and maintain live plant. We have also been joined in January by Ian Rush, who is our new global head of HSEQ.
What is the focus for 2012 and beyond?The biggest challenge for us, as well as the rest of the industry, remains finding talented people to meet the demand for our services. We have seen a 20% increase in headcount in the last six months and this will accelerate going into 2012. We are piloting a solution for this which will be good for both PTS and the wider group but more on this later.
The development of a competent workforce is one of the biggest challenges oil & gas companies face during a time when experienced workers are retiring and competition for new talent is heating up.
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NEW VENTURE
A Space Act Agreement between NASA and Raytheon created an opportunity to leverage unused capacity in the facility, which Raytheon manages on behalf of NASA. This opportunity resulted from the Space Shuttle Program ending and the completion of the space shuttle assembly.
In the US, PTS has experienced growing demand for high quality training at a time when the industry faces the challenge of experienced personnel retiring in the near future. Further, a recent industry study by the American Petroleum Institute and National Ocean Industries Association forecasts a projected growth in employment of 77% or 120,000 new jobs in the Gulf of Mexico by the end of 2013. PTS’ core purpose has always been to support industry needs by helping develop workforce capability, assure competence and deliver training to minimise risk and this partnership is a key platform for enabling PTS to support the growing needs and challenges of the industry in Houston.
This facility truly is a centre of excellence due to the equipment, the size and scale of the pool, the history and the experience of the teams who manage and facilitate the training.
In November, Petrofac Training Services (PTS) and Raytheon Technical Services Company (RTSC) announced a strategic partnership to deliver water survival and emergency response & crisis management (ERCM) training to the global oil & gas industry at NASA’s Johnson Space Center training facility in Houston.
Petrofac and Raytheon partner to deliver world-class training at NASA’s Johnson Space Centre
“We are already seeing demand for survival and ERCM training outpace supply,” said Paul Groves, managing director of Petrofac Training Services. “Through this partnership, we can support the growth of the oil & gas industry by combining the technical capability and industry best-practices of Raytheon, Petrofac and NASA to deliver world-class survival and safety training.”
This facility truly is a centre of excellence due to the equipment, the size and scale of the pool, the history and the experience of the teams who manage and facilitate the training. In addition, the technology and monitoring equipment incorporated in the 202 foot long x 102 foot wide x 40 foot deep pool provides a unique training environment from which to learn and refine critical aspects of water survival.
Tony Littler, regional director, Americas added: “with initial courses running since December 2011, we have already witnessed the benefits of the partnership. Due to the experience of the Raytheon divers and instructors, who have supported the NASA astronaut training programme and the similarities in terms of safety cultures, we have been able to seamlessly cross-train them to be able to deliver a top quality water survival product at the centre.
“Beginning in early March, we will be expanding our offering into ERCM training using the test control rooms on site and will focus on a Major Emergency Management programme initially. Further opportunities to explore supporting the training needs of other industries such as aviation will also be pursued in the near future.”
January 2012
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Petrofac celebrates 30th anniversary with events around the world...
...and marks the opening of two new offices
Abu DhabiIn celebration of the group’s 30th anniversary and to mark the occasion of Petrofac’s Board visit, Maroun Semaan, President of Petrofac and the UAE management team recently hosted a celebratory dinner in The Emirates Palace, Abu Dhabi. Guests included many of Petrofac’s major stakeholders from the region and provided a fitting opportunity for the business to convey its thanks for their continued support.
LondonMore than 250 guests gathered at the Four Seasons Hotel in London in May 2011 to celebrate the Company’s 30th year in business. Members of Petrofac’s Board, senior management and employees were joined by customers, partners and advisors to mark the milestone.
AberdeenPetrofac’s Aberdeen-based management teams celebrated our 30th anniversary with a dinner for 80 guests at the Marcliffe Hotel, Aberdeen in May 2011. Guests included representatives from customers and our charitable and supply chain partners.
The event followed the official opening of Petrofac Training Services’ new freefall lifeboat facility at Aberdeen Harbour.
THE PETROFAC JOURNEY
Team moves to new office in Houston, Texas
Petrofac’s Americas team celebrated their move to new office space with an Open House event in November for customers and staff. The event was attended by Ayman Asfari, group chief executive, who officiated over the ribbon cutting ceremony with the Houston West Side Chamber of Commerce.
Gordon McLeod, vice-president of Petrofac in the Americas, said: “The new office facilities have given our whole US operation a boost and are a good representation of Petrofac’s stature in the oil & gas industry. The Houston office is home to a number of Petrofac businesses and teams including Plant Asset Management, Training Services, an engineering procurement team and more recently, it has become the temporary home of the Mexico subsurface team.
“We doubled our headcount last year and this year we look to repeat that expansion. Our new office facilities will provide an excellent platform for the continued development of Petrofac’s business in the Western Hemisphere.”
Inauguration of the new Beijing office
In September, Petrofac celebrated the inauguration of its new Beijing office. Predominantly a sourcing operation for the ECOM division, it provides supply chain services for the division’s projects. Additionally it offers business development support and a valuable liaison centre for the group with Chinese customers, partners and suppliers. The procurement volume from our Chinese vendors has increased steadily over the last two years and the new office reinforces Petrofac’s continued commitment to strengthening relationships with our many Chinese stakeholders.
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Strengthening our relationship with Talisman
PROJECT FOCUS
Petrofac has been working with Talisman Energy Inc (Talisman) since 2009 on the development of offshore work packages and associated fabrication and offshore construction activities in the Central North Sea. Petrofacts caught up with Stewart Morrison, project manager, Offshore Projects & Operations for an update on the latest project undertaken on behalf of Talisman.
NameStewart MorrisonTitleProject manager - offshore projectsLocationAberdeen
Stewart can you give us the background to the Claymore project contract?Petrofac was awarded a new contract in May 2010 for the provision of engineering, fabrication and construction work on the Claymore platform to replace the existing manifolds and valves that have been damaged by corrosion. The scope includes installation of new super duplex pipe work which will last for the life of the field. The contract is valued at around £5 million and was won on the back of work we completed ahead of schedule on the Auk North contract which was awarded to Petrofac at the end of 2009. We were delighted to have the opportunity to continue to build our relationship with Talisman through this contract.
What can you tell us about the Claymore complex?The Claymore complex is located approximately 161km north-east of Aberdeen in the Central North Sea and comprises the bridge-linked Claymore production platform and accommodation platforms, both standing in 110m (361ft) of water.
What was the scope of the project?The scope of the work included replacing the A, B and test headers and all 33 down-comers, replacing the double block and bleed valves and replacing the emergency shutdown valves. In addition, we also changed the manifold pipe work materials from carbon steel to super duplex throughout, as well as de-rating the system from 1500lbs to 900lbs.
Did the team find anything challenging about this project?A critical aspect was Talisman’s requirement to complete the turnaround within ten weeks. The major achievement from Petrofac’s perspective is that we successfully delivered our element of the turnaround in just eight and a half weeks and did so without a lost time incident or a single leak.
How did the team complete the project in such a short timescale?To meet the fast-track timeframe, Petrofac designed the new manifold to be installed in pre-fabricated modules which were tested onshore; reducing the offshore construction time. We also designed a track and jacking system to move each module, weighing approximately 20 tonnes, into its precise position underneath its respective flow line tie-in; all of which fitted first time without any requirement for onsite modifications. To ensure this installation sequence was conducted without problems, we developed an animation of the construction phase based on our in-house 3D model of the project scope. The review and development of this animation was critical to the success of the construction phase, particularly with such a tight schedule.
What do you think contributed to the success of this part of the project?Our technical capabilities, coupled with the way we work, is what made this project such a success. All modules were trial fitted and surveyed onshore and super imposed onto the cloud scan we completed offshore for any clash checks. We challenged the norm and devised a creative solution for the problems we faced and the approach the team took with this project is a demonstration of the innovative way in which Petrofac people work.
What is the next activity the team will undertake for Talisman on the Claymore platform?Our next undertaking will be fabrication and offshore construction activities relating to a new 1,500 Te compression module located on the Claymore platform. A single heavy lift will be executed in June 2013 for the module installation and we will implement all the pre HLV activities prior to this date.
In addition to planning this job for the Claymore we are also currently completing front end engineering and design for Talisman for a bridge link platform on their Montrose asset.
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ALLIANCES FOR GROWTH
Establishing strategic alliances for growth
A key driver for Petrofac’s continued growth is the expansion of its geographic footprint. The group continues to build its current business activities in new geographies through contract awards and, more recently, has formed a number of strategic alliances to support growth into new regions.
Back in October, Petrofac and China Petroleum Engineering & Construction Corporation (CPECC), the engineering and construction subsidiary of China National Petroleum Company, announced the creation of a new strategic joint venture company, China Petroleum Petrofac Engineering Services (CPPES) and this month, Petrofac and Schlumberger announced a co-operation agreement to enable the businesses to combine complementary skills sets and access more market opportunities.
PETROFAC JOINS FORCES WITH SCHLUMBERGER TO ADDRESS NEW MARKET OPPORTUNITIES
On Thursday 5 January, Petrofac announced that its Integrated Energy Services (IES) division had signed a Co-operation Agreement with Schlumberger’s Production Management business (SPM) to establish a working relationship to deliver integrated and high value projects in the growing production enhancement market.
Commenting on the Agreement, Andy Inglis, chief executive, IES said: “I believe this will have a very positive impact on the future of IES. Co-venturing with Schlumberger will leverage the combined capability of IES and ECOM with the capability of Schlumberger, in our pursuit of Production Enhancement Contracts (PECs) around the globe. Together, Petrofac and Schlumberger will gain access to more opportunities, commit to larger investments and progress more quickly than either of us could otherwise do on our own.
“We consider the market opportunity for this collaboration to be significant as major resource holders seek to develop low risk reserves against an industry environment characterised by a shortage of capability and capacity. We will therefore need to continue to grow our capabilities in both well construction and subsurface beyond where we are today. This means there will continue to be significant and challenging career growth opportunities for our current and future technical
staff in IES,” he added.Petrofac and Schlumberger have
complementary skill sets and execution capabilities. Both have built these through subsurface knowledge, facilities expertise and operational experience in integrated asset management with IES having particular strengths in facilities, engineering and O&M and project management while SPM has particular strengths in subsurface knowledge, production engineering, well construction and project and asset management.
Miguel Gallucio, president, Schlumberger Production Management added: “Schlumberger and Petrofac share a common global culture that promotes the complementary nature of their respective products and services and together will provide a one-stop shop for clients in emerging field development and asset management services.”
Petrofac and Schlumberger will partner on Production Enhancement contracts, similar to those undertaken on our Romanian and Mexican projects.
Together, Petrofac and Schlumberger will gain access to more opportunities, commit to larger investments and progress more quickly than either of us could otherwise do on our own.Andy Inglis, chief executive, IES
Andy Inglis
petrofac.com
Following a long-standing relationship and track record of cooperation, most recently being jointly awarded an inspection, maintenance and repair contract for the Rumaila oil field in Southern Iraq, the joint venture seemed like the next logical step for Petrofac and CPECC. Maroun Semaan, president, Petrofac, commented: “Cementing our association with CPECC represents a significant milestone for Petrofac. Our relationship with CPECC extends over the last seven years and I am delighted it has been strengthened with the creation of this joint venture. Together, we have considerable resources and world-class engineering and construction expertise and our collaboration should enable us to capitalise on the significant opportunities in China and internationally.”
The joint venture which is 51% owned by CPECC and 49% owned by Petrofac was formally recognised at a ceremony at CPECC’s offices in Beijing on 19 September.
David Lufkin, group head of business development, said: “Petrofac started its relationship with CPECC back in 2004 when we signed a joint collaboration agreement. During the intervening years we have developed strong relationships at all levels with CPECC and this has helped enormously during the process of agreeing to set-up our joint venture company, CPPES.”
CPPES will focus on pursuing, winning and executing oil & gas services opportunities, offering a portfolio of conceptual engineering, FEED, detailed engineering and project management
services to its potential customers. In the short to medium term, the primary
focus of CPPES will be on projects in the Chinese domestic market and selected international projects for Chinese oil & gas companies. CPPES will be established in Sharjah with the board comprising senior executives from both CPECC and Petrofac who will provide the company with strategic goals and objectives along with the requisite levels of governance.
Resources for the company shall come from existing CPECC and Petrofac employees as well as external hires to grow the organisation. The company will operate independently from existing Petrofac and CPECC operations but will use the platform of systems, processes and procedures which are common to Petrofac.
CPPES will leverage the experience and expertise of both CPECC and Petrofac to identify and deliver on opportunities providing engineering services to its target market.
Mr Hou Haojie, president, CPECC, commented: “It is a delight that CPECC and Petrofac have come together to combine and harness their respective talents in order to deepen the portfolio in our local and international markets.”
In conclusion, Lufkin, commented: “I am tremendously excited about the new joint venture which is completely aligned with Petrofac’s vision of continued growth and development and will certainly help strengthen and differentiate our position in the market.”
Cementing our association with CPECC represents a significant milestone for Petrofac.Maroun Semaan, president, Petrofac
Maroun Semaan
PETROFAC AND CPECC ESTABLISH NEW JOINT VENTURE
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Petrofac remembers three valued employeesIt is with both fondness and sadness that we remember Dave Reilly, Dennis Dalgarno and Rohit Beri all of whom passed away suddenly in August, October and December 2011 respectively.
IN MEMORIUM
It is with great sadness that we remember a long time Petrofac friend and colleague, Rohit Beri, who passed away on Saturday 17 December following a short illness.
2012 would have marked Rohit’s 20th year of service with Petrofac and we have very fond memories of the day Rohit joined Petrofac’s finance team in 1992. Being an ambitious young man, his career blossomed thereafter, growing as Petrofac grew. Many of us also had the pleasure of knowing Rohit personally and will remember him as a dedicated professional and family man who always put the interests of others before himself.
Maroun Semaan, president of Petrofac, reflects on a long association with his colleague and friend: “Rohit joined Petrofac very much in the infancy of the business. In fact, along with a few others, he helped us to set up Petrofac International in Sharjah by establishing the accounts department. He bore testimony to our core values, undeniably that of quality and cost-conscious, and displayed an unwavering commitment to delivery. Rohit will be dearly missed by all his friends and colleagues in Petrofac as well as our customers and other stakeholders who had the pleasure of working with him over the years.”
Rohit is survived by his wife Aarti and two daughters. Our thoughts and prayers are with them all at this very difficult time.
Rohit BeriDennis Dalgarno, technical support co-ordinator, spent some 12 years with Petrofac and was known and respected for his technical ability, friendly nature and wit. His determination to get things done right the first time and on time, made him much respected by his colleagues and friends. Dennis had a depth of knowledge gained throughout his career in the oil & gas industry and willingly shared it with the whole team. He will be very much missed by all his friends and colleagues at Petrofac and elsewhere, and has left behind fond memories.
Dennis Dalgarno
Dave Reilly, senior integrity engineer, joined Petrofac 16 years ago. Dave was a committed team player who always had an interesting tale to tell. His great wealth of knowledge and experience was respected not only by his Petrofac family, but also within the wider oil & gas industry. Dave always had time for everyone and enjoyed the socialising, readily mixing with and enjoying company of others. He will be greatly missed by all those who knew him and worked with him.
Dave Reilly
Both Dave and Dennis left a significant legacy in the experience, knowledge and skills that they so willingly passed on to fellow members of the team, especially the younger generation of up-and-coming graduates and professional engineers. This has been a very sad time for the team. Both Dave and Dennis are very fondly remembered and are never far from our thoughts.Steve Bullock, senior vice president, OPO
I first met Rohit in 1984, when I recruited him to join my previous employer. After I left to join Petrofac in 1991, he was the first person I thought of when we were establishing our finance function in Sharjah. I’ve known Rohit for 28 years and shall miss him dearly, but I will always remember his professionalism, dedication and loyalty to both his family and to Petrofac.Ayman Asfari, group chief executive
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Minister of Training visits the In Salah (Hassi Messaoud) Training Centre
During October, the In Salah (Hassi Masseoud) Training Centre located in southern Algeria had the honour of receiving a visit from the Minister of Training, Wali of Ouargla and other government officials. Following a guided tour of the classrooms and workshops, both parties discussed a range of topics such as Petrofac’s involvement in the El Merk and In Salah projects. Impressed by his visit and the facilities inside the training centre, the Minister expressed his interest in discussing future possible collaboration.
HSE award and six million man-hours without LTI for the Kauther depletion compression project
Last September, the Kauther project achieved six million man-hours without LTI, almost two years since construction commenced. An earlier milestone, achieved at five million man-hours was recognised formally in a presentation ceremony by Petroleum Development Oman to Petrofac and its subcontractor Al Hassan Engineering Co. Elie Lahoud, project director commented: “This award represents a great team effort and serves to reinforce the fact that health and safety remains central to all our priorities in delivering the project.”
The British Ambassador to Romania visits Petrofac’s Ticleni field
Commenting on the visit, the Ambassador said: “I am delighted to visit Petrofac’s facilities and see its operations in Ticleni. Although an international group, as a FTSE100 company with around 5,000 staff in the UK, Petrofac plays an important part in our economy and we are delighted that it continues to grow both at home and abroad in places like Romania. The contract that Petrofac signed with Petrom last year will establish a long-term presence in the local market and will also continue to significantly improve the production output at Ticleni.”
Petrofac was awarded the production enhancement services contract for the Ticleni field and its eight satellite fields by Petrom in July last year. Petrofac took full operational responsibility for the asset and around 900 staff in November, following a successful three month transition period.
From left to right: Willie Toner, deputy general manager, the British Ambassador, Martin Harris OBE and Tommie Lennie, field manager.
Petrofac named ‘oil services company of the year’
Petrofac was awarded the title of ‘Oil Services Company of the Year’ at the 2011 Oil Council Awards ceremony in November. Gavin Graham, executive vice president, business development for IES, accepted the award on behalf of Petrofac at the Pavilion at Tower of London and commented on the accolade: “Petrofac is delighted with the award and to receive recognition from the industry for what we think has been a great year for Petrofac.”
NEWS IN BRIEF
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PETROFAC PEOPLE
Dr Andrew Thomas inaugurates Welding and Joining Society Middle East meetingIn September, Dr Andrew Thomas, Petrofac’s E&C quality director and vice-chairman of TWI-WJS Middle East branch of the Welding and Joining Society (WJS), inaugurated the third branch meeting of the WJS at Dubai’s Knowledge Village. The meeting was attended by members of the TWI and other welding industry professionals. The Middle East Branch of WJS provides opportunities for people in the region who are involved in welding to extend and share their technical knowledge and meet with other industry contacts.
Shweta Agnihotri, process design engineer with Petrofac Engineering & Consulting Services, recently volunteered to spend four months at the Kashagan field development project site located in Kazakhstan. Usually based in the Mumbai office, Agnihotri gained a wealth of knowledge and experience working alongside the commissioning team.
Following her return from Kashagan, Agnihotri commented: “Working with this commissioning team exposed me to the intricacies of process design. More importantly, I learned about practical problems that can arise during operations and the solutions required to resolve them. With better visualisation and understanding of a plant, I feel empowered to contribute more effectively towards the success of a project.”
When asked if she faced any particular challenges on site, Agnihotri underlined how interesting it had been to work with people of different cultures and professional backgrounds, all embodying ‘Petrofac DNA’: “Participating in discussions with the commissioning team and providing prompt and convincing solutions to technical queries wasn’t always easy but this experience at site changed my entire outlook on the scale of operations, project design and execution. With enhanced knowledge from the experience, as a process design engineer, I am proud to be associated with Petrofac, a company providing equal opportunities to all of its employees.”
Putting process into practice
Certificate of appreciation for outstanding services
Samir Maowad, government relations officer at Petrofac, was recently honoured for his outstanding professional services with Sharjah Immigration Department, receiving a certificate of appreciation from department director, Dr. Abdulla Binsahoo. Having been with Petrofac for more than 15 years, Maowad is widely acknowledged in Petrofac for exceptional dedication to his profession and positive contribution to the strong relationships between the Company and the local authorities.
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Success at the Oil & Gas UK Awards
Petrofac was successful at the Oil & Gas UK Awards 2011 when Paul Martin, platform trainer on the Alwyn asset won the Mentoring award, which recognises the important role mentors play in passing on their knowledge and expertise to the next generation of oil & gas workers.
Commenting on his award, Paul said: “I’m very proud to have won the mentoring award. I’d like to thank everyone who contributed towards my nomination and my colleagues at Petrofac and Total for supporting my efforts. I’d especially like to thank my past and present trainees who I’ve taken great pleasure in working with and who are the future of our industry.”
Walter Thain, vice president – operations added: “The Oil & Gas UK Awards recognise and reward the industry’s brightest stars and we are honoured to have employees like Paul recognised in this way.”
From left to right: Sarah Mack, ceremony host, Sir Robert Smith, MP for West Aberdeenshire and Kincardineshire, Paul Martin, platform trainer, Petrofac and Eric Sirgo, operations general manager Europe, Chevron Upstream
Petrofac employee awarded Fellowship title
Congratulations to John Harney, construction director, Onshore Engineering & Construction, on being awarded the title of Fellow of the Institution of Mechanical Engineers.
Founded 160 years ago, the Institution currently has 98,000 members and remains dedicated to improving the world through engineering.
Harney commented on his award: “I was awarded the title of Chartered Engineer after completing academic and experience requirements, plus submitting a dossier of my work. I really thought that was as high as I could go, but then I received a letter from the Institution asking if I would like to apply for Fellowship.
“The application process was quite daunting, but thanks to my sponsors, Peter Ingamells and Andrew Thomas, both of Petrofac, I made it. My success is theirs, and I thank them most heartily for their support.”
In November Alistair Davidson, managing director of Petrofac’s SPD business in the Middle East, was awarded the prestigious title of ‘Oil Baron 2011’, with the official crowning taking place during the Oil Barons Charity Ball in Dubai. Davidson is the ninth recipient of the Oil Baron title, an industry accolade awarded every year to a top executive from the energy sector in recognition of their lifetime achievements in business as well as for their contributions to the wider community.
Having served the international oil industry for more than 27 years, Davidson was nominated as an Oil Baron candidate by his industry peers from no less than 35 regional energy companies. This, combined with his exceptional business performance and volunteer work in the UAE community, led judges from dmg :: events, Pipeline Magazine and former Oil Barons to bestow the 2011 Oil Baron crown upon him.
Davidson founded SPD in Dubai in 2002 with two other colleagues and has been instrumental in growing the business regionally in the UAE, Qatar, Oman, Yemen and other countries in the Caspian.
SPD director crowned ‘Oil Baron 2011’
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NEW APPOINTMENTS
Arnaud Humbert
Humbert will be primarily responsible for covering the Africa region. Humbert brings more than 13 years of international experience in the oil & gas industry, having held previous managerial positions with Shell International and Saipem. He gained a strong offshore background from his experience in Nigeria and Congo, and gained significant hands-on drilling experience in Gabon. Humbert also has an international executive MBA from HEC in Paris, as well as master’s degrees in mechanical and industrial engineering and international relations and diplomacy.
Sebastian Lagiditis
Lagiditis brings his 16 years of experience to enhance our coverage in the CIS, specifically Azerbaijan, Uzbekistan and Russia. Prior to joining Petrofac, Lagiditis held roles with AMEC and CB&I Lummus and also worked in various countries including a four-year period in Azerbaijan while he was working with AMEC. Lagiditis has a Mechanical Engineering Degree from the University of British Columbia, Canada and a MBA degree from Rotterdam School of Management, Netherlands.
Chris Avison
Avison will focus on our growth in the Asia Pacific region. With approximately 20 years’ experience, he joins Petrofac from Shaw Energy and Chemicals where he covered Eastern and Western Europe, and the Middle East regions. Throughout his career, he has acquired knowledge in a number of technologies and products lines, ranging from specialised equipment sales for the oil, gas and LNG businesses, to plant sales of air separation units, ethylene and refinery technologies. Avison has taken on a business development role for the Far East (onshore and offshore) as well as supporting our various refinery prospects.
Kishor Parwani
Parwani has 20 years of experience with international oil & gas companies covering a range of roles including operational, commercial and business development. Along with Humbert, Parwani will support the growth of the Company’s markets in Africa. Parwani has a BE mechanical engineering and a master’s degree in marketing from Amravati University, India.
Rick McLeod Senior VP, Technical, IES
Rick McLeod joined Petrofac in November as senior vice president, technical, as part of the IES leadership team based in London. McLeod has more than 30 years of upstream oil & gas experience at both major and independent oil companies, most recently with Hess Corporation in Houston where he was responsible for progressing the development of the US$7 billion Pony/Knotty Head joint venture in the Gulf of Mexico. As the leader of the newly formed IES technical directorate, McLeod will focus on strengthening the IES technical capability globally to provide the technical assurance and operational support needed to execute our significant upstream growth plans.
Roger HarwoodGroup Head of Legal
Roger Harwood will join Petrofac in February as group head of legal, based in London and reporting to Richard Milne, group director of legal and commercial affairs. Harwood joins us from Hess Corporation where, since 1992, he held a number of advisory roles. Since 2008 Harwood was the deputy general counsel for worldwide exploration & production, responsible for the provision of legal services to the Hess group of companies with business in North West Europe, Central Asia, Africa and Australia. In this new role, Harwood will lead the central legal function, and will provide support at group level in addition to working with both the central functions and the divisional legal and commercial teams to manage Petrofac’s legal and contractual risk.
Bob Gower VP, Human Resources, IES
Bob Gower joined the IES leadership team in September as vice president, human resources, based in London. Gower has an accomplished career with 18 years of international experience in the oil & gas industry, working with Shell and more recently Jacobs Engineering, as HR director. With a wealth of experience working across different geographies including Europe, Russia, Central Asia and the US, Gower will develop and implement Petrofac’s HR strategy to support the growth of the IES business, working closely with HR colleagues throughout the company.
As part of Petrofac’s continued development the sales and marketing function recently welcomed four UAE-based sales directors to its team who will support business development activities within the new ECOM division. The expansion of the team, which will continue into 2012, will be key in the identification and nurturing of new opportunities, ensuring alignment with the strategic growth plans for the Company.
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OFFICE LOCATIONS
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Main operational centres
Sharjah, United Arab Emirates Petrofac House, Al Khan RoadPO Box 23467, Sharjah, United Arab Emirates T: +971 6 574 0999 F: +971 6 574 0099
Aberdeen, Scotland Bridge View, 1 North Esplanade West Aberdeen AB11 5QF, United Kingdom T: +44 1224 247000 F: +44 1224 247001
Woking, England Chester House, 76-86 Chertsey Road Woking, Surrey GU21 5BJ, United Kingdom T: +44 1483 738 500 F: +44 1483 738 501
Mumbai, India 7th Floor, Ventura, Central Avenue, Hiranandani Business Park, Powai, Mumbai 400076, IndiaT: +91 22 3051 3100 F: +91 22 2570 4705
Chennai, IndiaDLF Infocity SEZ, 7th floor, Block 9A, 1/124 Shivaji Gardens, Nandambakkam Post, Manapakkam, Ramapuram, Chennai-600 089, IndiaT: +91 44 3927 3000 F: +91 44 3927 3100
Abu Dhabi (Petrofac Emirates)Abu Dhabi Business Hub, ICAD-1, Block A, 2nd floor, PO Box 9398Abu Dhabi, United Arab Emirates T: +971 2 810 4000 F: +971 2 810 4801
Main operational centres
AlgeriaTour ABC, Pins Maritimes Mohamadia, Alger, Algeria T: +213 21 89 15 52 / +213 21 89 15 55 F: +213 21 89 15 54
China 21F Tower A, Focus Center, No. 6 Futong Avenue, Wangjing Chaoyang District, 100102 Beijing, China T: +86 10 8453 9288 F: +86 10 8453 9388
EgyptKiroseiz Building, 6th Floor, 9 Ibrahim El Sherif Street, Moustafa Kamel, Alexandria, EgyptT: +203 544 5540 F: +203 544 6909
IndiaDLF Cyber City, 12th Floor, Tower B, Building 14,Sector 24/25A, Gurgaon–122 002, Haryana, IndiaT: +91 124 387 8000 F: +91 124 387 8111
IndonesiaP.T. Petrofac IKPT International,JL. Prof. Dr. Soepomo No. 42, Jakarta Selatan – 12870, IndonesiaT: +62 21 829 8080 F: +62 21 829 0030
ItalySede Secondaria Italiana, Via Mola 48 (primo piano), 20156 Milan, ItalyT: +39 02 89691638 / 89691689 F: +39 02 89691798
KazakhstanOffice No. 701, 7th Floor, 19th Satpayeva Street,Business Centre, Atyrau Plaza, Atyrau 060011,KazakhstanT: +7 7122 973 500 F: +7 7122 973 501
Kuwait Eastern Plaza Building, ground floorBlock 8, Plot No. 42, Ahmadi Industrial AreaPO Box 9816, Ahmadi – 61009, KuwaitT: 965 2228 1405 – 408 F: +965 2228 1409
Kyrgyzstan 202, Promyshlennaya Street Jalal-Abad 715600, Kyrgyz Republic T: +996 3722 55505 F: +996 3722 52315
MalaysiaLevel 50, Tower 2, PETRONAS Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur,Malaysia T: +6 03 2382 2700 F: +6 03 2300 2241
MexicoAvenida Via 2, No. 108 – Planta Baja, Villahermosa, Tabasco, CP 86030T: +52 993 316 2165
Nigeria289b Corporation Drive, Dolphin Estate, Ikoyi,Lagos, Nigeria T: +234 1 461 4061 F: +234 1 628 1509
OmanPO Box 2012, PC 111, Seeb, Sultanate of OmanT: +968 24484525 F: +968 24487942
Qatar PO Box 2895, Al Emadi Financial Square BuildingNo. 2, First Floor, C-Ring Road, Near Munthaza Signal, opposite Holiday Villa Hotel, Doha, Qatar T: +974 4419 2426 F: +974 444 11 008
RomaniaLitexco Stirbei Center, 104-106 Stirbei Voda Street, Sector 1, Bucharest 010119, RomaniaT: +40 0372 136 502 F: +40 0372 136 532
Russia23, Novoslobodskaya Street, 123055, Moscow, RussiaT: +7 495 933 78 84 F: +7 495 935 78 84
Saudi ArabiaAl-Saeed Tower-2, 5th Floor,Khobar-Dammam Highway, PO Box 77378,31952, Al-Khobar, Kingdom of Saudi ArabiaT: +966 3 814 6922 F: +966 3 814 6917
SudanAl-Tayf, Nakhil St 11, House No.220, Block 23, Khartoum, Sudan T: +24 9183 241795 F: +24 9183 241097
SyriaMazah Eastern Villas, Jade Sharjah, Al Farabi Street, Al Hamami Building No. 36, Damascus, Syria T: +963 11 6127714 F: +963 11 6125106
TunisiaLake Forum Business Center, EntreeB, Les Jardin du Lac, 1053 Les Berges du Lac II, Tunis, TunisiaT: +216 70 010 500
United States1254 Enclave Parkway, Suite 625, Houston,TX 77077–1885, USAT: +1 832 379 0500 F: +1 832 379 0502
Registered office
Petrofac Limited, Ogier House, The Esplanade,St Helier, Jersey JE4 9WG
Petrofac Corporate Services
117 Jermyn StreetLondon SW1Y 6HH, United KingdomT: +44 20 7811 4900 F: +44 20 7811 4901
Integrated Energy Services
117 Jermyn StreetLondon SW1Y 6HH, United KingdomT: +44 20 7811 4700 F: +44 20 7811 4701
Training centres
AzerbaijanGaradagh Industrial Park, Salayan Highway 22km,Baku, AzerbaijanT: +994 12 545 9156/7 F: +994 12 545 9160
RussiaPKT Training Services Limited,Sakhalin Technical Training Centre, Mira Ave, 6G,Yuzhno-Sakhalinsk 693000, RussiaT: +742 42 505261 F: +742 42 505855
ScotlandBlackness Avenue, Altens, Aberdeen AB12 3PG,United KingdomT: +44 1224 899707 F: +44 1224 244752
North Esplanade East, Aberdeen AB11 5QD,United KingdomT: +44 1224 899707 F: +44 1224 244752
Forties Road Industrial Estate, Montrose DD10 9ET, United Kingdom T: +44 1674 672230 F: +44 1674 667334
SingaporePetrofac Training Pte Ltd, Chemical ProcessTechnology Centre, 81 Jurong Island Highway, Singapore 237837T: +65 6880 2000 F: +65 6896 7151
United States1110 Enclave Parkway, HoustonTX 77077-1885, USAT: +1 281 558 5820 F: +1 281 558 5535
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How well do you know our Golden Rules of Safety?Can you identify the rule that each symbol represents?
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