Woodside Energy Ltd - Persephone Project - AIP Plan Summary - Project Phase
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1.Australian Industry Participation (AIP) plan Summary – Project Phase
1. Project Details Designated project proponent: Woodside Energy Ltd Description of the project: Overview The North West Shelf Project’s onshore Karratha Gas Plant (KGP) consists of five LNG trains and a domestic gas plant (Domgas) and is located on the Burrup Peninsula of North Western Australia near the town of Karratha. The KGP processes raw dehydrated gas and exports LNG, condensate and LPG via ship together with conditioned gas via the domestic gas pipeline. The gas condensate fields that supply this facility are located approximately 130km offshore. Offshore, the North Rankin Complex [comprising North Rankin A (NRA) and North Rankin B (NRB) platforms], the Goodwyn A platform (GWA) and the Angel platform dehydrate the raw hydrocarbons for export via a dual subsea pipeline system to the KGP. The Persephone Project will be tied back to the North Rankin Complex to supplement production. The Persephone Field is located in approximately 126m of water, off the eastern flank of the North Rankin Horst approximately 6.5km NE of the North Rankin Complex (NRC) and 135km NNW of Karratha. The Persephone Field was discovered by the Persephone-1 well in December 2006 and lies in petroleum production licence WA-1-L. Persephone Project The project makes provision for two large bore deviated production wells, with downhole sand control, tied into a manifold at a common drill centre location, via rigid diverless spools. From the manifold, a 12in (ID) flexible flowline will be routed back approximately 6.5km, and connected to the 12in NB rigid riser system within an existing riser conductor. Control and chemical injection for hydrate management will be enabled by an EHU that will run along the same route from the common drill centre and manifold location to the NR Complex. Production from the Persephone tie-back will be directed to an existing NRC processing train via a new tie-in at the production manifold on NRA. The existing train will separate, compress and dehydrate the gas and condensate prior to export to KGP. Based on the expectation of a Final Investment Decision in H2 2014, current development completion is planned for H1 2017. Persephone Project Contracting Strategy
AIP plan Summary – Project Phase Australian Industry Participation Authority Version 1.1 April 2014 1 The contracting strategy is based on proven methodology used by Woodside for previous projects of this magnitude. Drilling and Completions: Given the relatively small campaign required, the wells have been incorporated into an existing Drill Rig sequence previously contracted by Woodside, as opposed to acquiring a rig specifically for the Project. Provision of drilling rig services will be called off against established material and service contracts used to support pan-Woodside drilling and completion operations. Subsea and Pipelines: Where appropriate, Persephone subsea and pipelines packages will be sourced from existing Frame Agreement holders and/or reputable prequalified suppliers in competitive tenders to ensure high quality of design and execution. The packages will then be free issued by Woodside to the Subsea Installation Contractor or an intermediate contractor where appropriate. Brownfields: For the Brownfield topsides work scope, the contracting strategy is to have separate Woodside project management and EPCM Contractor teams, with defined interfaces and responsibilities. Implementation contracts for the supply of materials and services will be contracted in Woodside’s name but managed by the EPCM Contractor with defined limited powers. The EPCM Contractor is Wood Group PSN. Estimated project value: There are ten remaining contracts of the Persephone Project affected by the Australian Jobs Act and this AIP Plan with a total estimated value of $27m. Project location: The Persephone offshore gas field is located 6.5 kilometres northeast of the North Rankin Complex and 135 kilometres north-northwest of Karratha, Western Australia. Link to project information: www.woodside.com.au/supplying_to_woodside/Pages/default.aspx www.projectconnect.com.au Project contact for procurement information: David Newman, Contracts Manager Subsea & Pipelines, Tel: +618 9348 4119, E-mail: [email protected] Other project proponents involved in the project: Not applicable
2. Opportunities to supply Goods and Services
Expected opportunities Opportunities Opportunities for for Australian non-Australian entities entities
Goods
AIP plan Summary – Project Phase Australian Industry Participation Authority Version 1.1 April 2014 2 Expected opportunities Opportunities Opportunities for for Australian non-Australian entities entities
Manual Valves No Yes
Ball Valves No Yes
Piping Bulks No Yes
Piping spool fabrication Yes No
Structural fabrication Yes No
Services
Electrical and instrumentation engineering Yes No services
Control system upgrades (design and Yes No hardware)
Vertical rope access inspection services Yes No
Multi-discipline services Yes No
Subsea installation (Work Pack No. 3) Yes No Disclaimer: The information provided in the table above is based on an initial assessment by the company. Any questions or issues should be raised with the project contact.
3. Standards to be used in the project It is a Woodside requirement that standards utilised are either Australian or internationally recognised equivalents, unless otherwise justified due to specific technological, commercial, intellectual property or similar requirements. The reasons for use of non-Australian/ international standards whether due to technology, intellectual property or other commercial considerations will be published on the relevant procurement entity’s website.
4. AIP activities undertaken by the Project Proponent The activities undertaken by Woodside will ensure that full, fair and reasonable opportunity has been provided to Australian companies. Woodside will ensure that obligations arising under the Australian Jobs Act (2013) (the Act) are fulfilled and are cascaded down in contracts with procurement entities. Woodside, when acting as a procurement entity, will engage in advance of commencement of tendering activity for key goods and services with ICNWA to determine whether Australian capability and capacity exists for a particular item of supply, and whether an advertisement should be placed on ProjectConnect to seek expressions of interest from Australian vendors to prequalify and tender.
AIP plan Summary – Project Phase Australian Industry Participation Authority Version 1.1 April 2014 3 Woodside will provide training to procurement entity personnel to ensure their understanding and application of the requirements of the Act. Woodside will periodically run an AIP assurance process to ensure appropriate AIP process procedures and guidelines are being followed by Woodside personnel and procurement entity personnel.
5. AIP activities to be undertaken by procurement entities Woodside as part of tender and award process for engagement of procurement entities will ensure that the requirements of the Act have been incorporated into the agreement between the parties, include the requirements in respect of: 2. Appointment of a Procurement Contact Officer; 3. Performance of market analysis to gain and demonstrate a broad understanding of Australian capability; 4. Maintenance of a website pertaining to project procurement activity; 5. Publication of prequalification requirements in respect of key goods and services; 6. Publication of details of applicable standards; 7. Publication of details for non-use of Australian or international standards where applicable; 8. Receipt of training from Project Proponent; 9. Provision of vendor debriefs to unsuccessful tenderers including guidance on training and capability enhancement; and 10.Provision of required reporting to Project Proponent to support its related obligations under the Australian Jobs Act 2013 (Cth.) Woodside will also require that procurement entities engage with ICNWA for documentary advice regarding Australian capacity and capability in respect of key goods and services, and that they utilise the services of ProjectConnect to advertise for vendor expression of interest.
AIP plan Summary – Project Phase Australian Industry Participation Authority Version 1.1 April 2014 4