Oil Andspecial Gas REPORT FEATURE

Oil andSPECIAL Gas REPORT FEATURE

KICK-OFF: Wood plc has been growing its Perth presence, Ralph Ellis says. Photos: Gabriel Oliveria Next boom nears as projects progress Decisions are expected on three major oil and gas projects worth $24 billion combined in 2020, with more to follow.

Scarborough LNG project, and Worley’s oil and gas expo- support as it moves into the exe- Protracted discussions was last year selected for feed sure includes engineering, cute phase.” between the Browse partners studies on Shell’s Crux expansion. procurement and construction Mr Ellis said the Woodside and the owners of the North West Decisions on these projects, and management work at Woodside’s projects, in particular Browse Shelf Venture, where the gas will Santos’ Barossa, are due in 2020. Karratha gas plant, and brown- and Scarborough, would inten- be processed, are also delaying a Wood president operation ser- field engineering support for sify demand for skilled workers decision. vices for Asia Pacific, Ralph Ellis, Chevron across its WA assets. in WA. Mr Coleman said the negotia- told Business News the company Wood’s Mr Ellis said the tions were down to the last three had grown its team in Perth from outlook for the industry was Pipeline or four key value items. about 500 to more than 1,000 in good, with potentially two The two big Woodside projects Asked if the Browse delay Matt Mckenzie the past three years. big projects from Woodside are among 10 worth more than would lead to an ullage, or excess [email protected] @Matt_Mckenzie_ Part of that was organic, driven backed up by a pipeline of other $500 million each that are under- capacity, at North West Shelf’s by minerals and oil and gas, while developments. way or in the pipeline for WA. five Karratha processing trains in 6-PAGE FEATURE part of it was through the acquisi- “When you throw in Chevron, At its recent results briefing, the mid 2020s, he said there were STRONG graduate intake tion of Amec Foster Wheeler. Inpex, we’re working for Conoco, the company said the $27 billion other potential gas sources under at a major engineering There’s been growth across the we’re working for Inpex, we see Browse development was ready consideration. A firm is usually a good market, according to the latest investment in existing assets for front-end engineering and “We’re hopeful that we’re not barometer of the positive state BNiQ data (see page 22), with the across a number of the owner design work now, with a final going to see any ullage in North of the oil and gas sector. number of engineers employed at organisations,” he said. investment decision late next Multinational company Wood the 10 biggest engineering busi- “We see a cautiously optimistic year. plc’s Australian class of 2020 will nesses in WA up 35 per cent year picture; there’s plenty of oppor- The FEED period was extended have about 30 people, mostly in on year, to nearly 4,700. tunity to do good work on good a few months, however, partly $ Perth, about twice the number The biggest movement was at facilities, we just have to meet because the floating production bn two years ago. Worley, up from 650 to 1,700 engi- the market. platforms for the project would 7 Wood has been undertaking neers in the past year, thanks in “Things like Crux are moving be some of the world’s most BAROSSA PROJECT front-end engineering and design part to the company’s acquisition to the next phase of its evolution, complex, chief executive Peter CAPEX FORECAST work for Woodside Petroleum’s of Jacobs Engineering. we’re currently in phase two Coleman told investors. Source: Santos FEATURE

OPTIMISM: Kelvin Andrijich says bigger opportunities are on the horizon.

said, affected by the coronavirus Santos will also enter FEED for and an expected oversupply in the $2 billion Dorado oil develop- the market. ment, in the Carnarvon Basin, in I think (opportunities) Next boom nears as projects progress Woodside selected Austral- the June quarter. ian Gas Infrastructure Group in Shell has been moving forward are here in the year ahead, November for construction of an on the $2 billion Crux tieback interconnector pipeline between into the Prelude FLNG vessel, and there’s some bigger fish the neighbouring Pluto and Kar- selecting KBR and Wood for feed ratha plants. work early last year. coming up - Kelvin Andrijich There was also a final invest- A final investment decision is ment decision in the last quarter expected this year. of 2019 on the Julimar-Brunello Chevron named Aker to under- fabrication of subsea equipment The company is the lead con- West Shelf, the only issue we tieback into the Wheatstone plant, take FEED work on a compression for the project. tractor for Mitsui’s Waitsia would see is the composition of operated by Chevron. Subsea 7 system at the Jansz/Io field last Chief executive Pat Tallon was development (see page 21). the gas, the multiple composi- won a contract valued at up to year, while further in the dis- optimistic there would be a pipe- “We’re doing some FEED [work] tions, and whether the capacity $US300 million for a transmission tance is the company’s Clio/Acme line of work for the fabrication for Woodside at the moment,” Mr of the plant will be affected,” Mr flowline and umbilical system. tieback to Karratha, and Western business ahead. Galvin said. Coleman said. Drilling will begin early this Gas’s Equus development. “The first indicators of what’s “We’ve got engineering capabil- “We don’t see a big gap with year and completion is due in Deloitte national oil and gas happening are going to come from ity as well as construction … from any delay in Browse at this point, 2022. leader Bernadette Cullinane, who client and engineering houses; if a construction perspective we’re however, it does get to a point Meanwhile, moves were made is a key figure in Australasian they are active in getting ready a couple of years off of the bigger where the ullage at North West on a series of other big projects, Oil and Gas Exhibition and Con- for something, it’s going to hit us stuff.” Shelf is larger than these multiple which together would be worth ference’s industry supply forum, in a couple of years,” Mr Tallon He said the local labour sources of gas can service.” more than $14 billion. said she expected a number of said. market was starting to dry up, A decision on the $15 billion The biggest is Barossa, to projects in the pipeline would be “We’re seeing general activ- with Clough on the front foot to Scarborough project, including a supply the existing Darwin LNG sanctioned. ity mainly in subsea work, and recruit good people early, ahead second train at Pluto LNG, is due plant. Ms Cullinane said demand for we have some indication that of the market. in the middle of this year. Technip, Allseas and Modec LNG would continue to rise. onshore capital expenditure Alltype Engineering manag- Mr Coleman said Woodside International were awarded con- “I’d feel very positive about the could be in the realms of late 2022 ing director Kelvin Andrijich said planned to have about half its tracts last year on the $7 billion future in WA,” she said. or 2023. enquries to the Naval Base-based offtake gas contracted by the development in the Timor Sea. “It’ll be a time of significant “Two or three years ago we had company had increased. time it pushed the go button, and Control of the project will be change.” no vision on anything happening He said the business was expects to achieve the target. shifting to Santos, which commit- in this space.” involved in a number of mainte- A tolling agreement between ted to buy ConocoPhillips’ share Optimism Clough executive vice-presi- nance projects and minor projects. Woodside and partner BHP of the Barossa and Darwin LNG The biggest project under way dent John Galvin said he expected “I think [opportunities] are here should be finalised within assets late last year. now is Chevron’s Gorgon stage bigger construction work pack- in the year ahead, and there’s some months, he said. A final investment decision is two. ages would start to flow through bigger fish coming up,” he said. That is happening amid a soft expected in the second quarter of Henderson-based contrac- next year, although some smaller market for LNG, Mr Coleman this year. tor Civmec has worked on projects were available now. Continued on page 21 FEATURE OIL & GAS Onshore options attract attention

The Perth Basin could be in for a transformational year.

Matt Mckenzie Basin, including appraisal drill- [email protected] ing and long lead items for 2021 @Matt_Mckenzie_ exploration. THREE companies with con- Mitsui and Beach also share nections to prominent Western an interest in Beharra Springs, Australian business figures plan which was drilled in October and to spend more than $110 million hit gas. in the Perth Basin starting this Strike Energy, which boasts year. John Poynton as chairman, That follows years of promise in raised $31.4 million for appraisal the basin, which covers the area drilling at West Erregulla in the about two hours north of Perth. Perth Basin and for operations Mineral Resources, head- on the east coast. ed by Chris Ellison, has said it West Erregulla is jointly owned would allocate about $30 mil- by Strike and Warrego Energy. lion to the basin this financial Strike hopes to deliver first gas year. from the field by 2022. The two main items will be seismic survey work across nine Long life tenements and one conventional There is a series of smaller, ex- gas well. isting production facilities in the MinRes has partnered with Perth Basin, in addition to Wait- Norwest Energy on the Lockyer sia. Deep prospect, where the well is Triangle Energy operates to be drilled this year. the Cliff Head oil field and Ar- The company has also crept up rowsmith production plant, Norwest’s register, increasing its which it acquired in 2016. holding to 19.9 per cent in Febru- The company produces about ary. 1,000 barrels of oil daily, trucked The biggest potential Perth to the BP Kwinana refinery. Basin investment would be the Chief executive Rob Towner Waitsia stage two gas project, told Business News Triangle was Quest Maritime Services owned by Japanese business Mit- analysing data on a number of sui and Beach Energy. prospective nearby fields. provides a wide range of OUTPUT: Rob Towner says the Arrowsmith production plant has a capacity of 15,000 Beach counts Kerry Stokes’ Production at the existing Photo: Gabriel Oliveira Seven Group as a major share- wells will decline in the next barrels a day. operational services to keep holder. five or six years, so the focus Last year, the partners agreed will be on potential fields near- else, have done no extensive drill- the marine industry moving to a small expansion of the exist- by to keep Arrowsmith run- ing at all. ing Waitsia facility, doubling ca- The amount of “The amount of investment ning. We take pride in our ability to cater to our client’s specific requirements, whilst pacity to 20 terajoules a day. But Arrowsmith had capacity of that’s gone into Cooper Basin, an investment of at least $100 15,000 barrels a day, Mr Towner investment that’s gone into Eromanga Basin, and up into ensuring as little environmental impact as possible. Striving to be the number million, of which Beach would be said. Queensland has not been mir- one provider of charter vessels for specialised marine contract work, we have expected to contribute $50 mil- Cooper Basin, Eromanga rored in the Perth Basin at all.” “We see a lot of value in the provided services to the Oil & Gas sector with speciality equipment for Harbour lion, would raise capacity to as [processing] infrastructure,” he Further north (of Perth much as 150tj/d. said. Basin, and up into Queensland Basin) in the Canning Basin, Maintenance. We are also involved in International Navy logistic & husbandry That represents roughly 15 “For that to be valuable, we’re Buru Energy has assumed ti- for the US and Canadian Naval vessels in Brisbane and Darwin mainly, as well as per cent of WA’s domestic gas has not been mirrored in the tles to three exploration per- looking at our own Cliff Head other smaller port visits around Australia. market. field, how we can increase pro- mits, with a farmout process - Rob Towner An expansion of this nature duction through opportunity in Perth Basin at all on the company’s Kimberley Our contracts include INPEX, Woodside, Shell, McDermott’s and Monsoon has been on the radar for years, what we now produce. exploration portfolio to begin but now seems closer to fruition “For identification of addition- In the short term there would ... large ASX or global oil-focused in March. offshore. We have also had clients onboard to support the Oil & Gas Environmental after the completion of front-end al prospects and leads to drill, be investment of up to $6 million company in the basin looking for Buru’s Ungani oilfield is survey such as UWA, CSIRO, and Blue Ocean Monitoring. engineering and design work, we’d potentially look at partner- at Arrowsmith, Mr Towner said, oil at all. pumping about 1,500 barrels with a final investment decision ing, with a company wanting to to optimise the plant. “They have been in the basin a day, the company said in targeted by the end of the 2020 come into the basin to look for “We’ve got the ability [now] to before but they, like everyone February. Contact us for a quote or to discuss your requirements today! financial year. oil. reinvest revenue into infrastruc- Mineral Resources Beach said it would spend $35 “It is production relatively ture for the longer term,” he said. .com.au million in the year to June on quickly that can be taken to “Of all the basins in Australia There are 1,725 results from our index of 102,012 articles, capital expenditure in the Perth market.” at the moment, there’s not one 10,112 companies and 38,087 people (08) 9203 5225 | [email protected] | questmaritimeservices.com.au/ OIL & GAS FEATURE Sector engineers $24bn project potential From page 19 Contract awards – a selection in the past 12 months

“Drilling activity is up. Every- CONTRACTOR PROPONENT PROJECT TYPE SPECIFICS DATE body is pushing it along. “There is a lag, but it’s one of Subsea 7 Woodside Julimar-Brunello EPCI Flowline, umbilical system Nov 19 those things, knowing these Aker Solutions Chevron Jansz-Io FEED Subsea compression system Mar 19 projects are getting to the point of final investment, and the eco- Technip ConocoPhillips Barossa EPC Subsea production system May 19 nomics seem to make sense.” SNC-Lavalin Woodside Goodwyn A Operational Hazop gap analysis May 19 Mr Andrijich said he hoped to SNC-Lavalin Santos Devil Creek E&D Power station May 19 double the company’s workforce in the next few years. KBR and Wood Group Shell Crux FEED Platform & pipeline Feb 19 Baker Hughes is also involved Modec International ConocoPhillips Barossa EPC FPSO Oct 19 on Gorgon stage two, contracted Allseas ConocoPhillips Barossa EPC Pipeline Oct 19 for well construction services. UGL Chevron Gorgon Operational Maintenance & turnaround Feb 20 Speaking to Business News ahead of AOG in Perth this UGL Chevron Wheatstone Operational Maintenance & turnaround Feb 20 month, Baker Hughes vice-presi- Ausgroup Chevron Gorgon Operational Maintenance (extension) Feb 19 dent Graham Gillies was another AGIG Woodside Burrup Hub D,C&O Interconnector pipeline Nov 19 to express confidence in the sector’s outlook. “We’re back now to sustainable availability is a constraint,” Mr Mr Gillies said the taskforce “Digital technology that ena- Gillies said. energy demand,” Mr Gillies said. Gillies said. was trying to develop sustainable bles predictive maintenance and “Early adoption can give the “It’s a very positive trend we “A more sustainable phased capability, and determine how to artificial intelligence analytics workforce in WA and future uni- see, it’s shown some level of approach allows a more sustain- create a nucleus of sustainable will play a key role in raising the versity students a competitive stability.” able workforce.” technology and jobs. productivity of the industry,” Mr edge as well.” He said the labour market had Also viewed in a positive The workgroup had been collab- Clough also stabilised. light was the introduction of orating on deploying technology .com.au “When you have five or six the state government’s jobs such as drones and digital twins There are 955 results from our index of 102,012 articles, mega projects going on, resource taskforce. to improve productivity, he said. 10,112 companies and 38,087 people

Quest Maritime Services provides a wide range of operational services to keep the marine industry moving

We take pride in our ability to cater to our client’s specific requirements, whilst ensuring as little environmental impact as possible. Striving to be the number one provider of charter vessels for specialised marine contract work, we have provided services to the Oil & Gas sector with speciality equipment for Harbour Maintenance. We are also involved in International Navy logistic & husbandry for the US and Canadian Naval vessels in Brisbane and Darwin mainly, as well as other smaller port visits around Australia. Our contracts include INPEX, Woodside, Shell, McDermott’s and Monsoon offshore. We have also had clients onboard to support the Oil & Gas Environmental survey such as UWA, CSIRO, and Blue Ocean Monitoring.

(08) 9203 5225 | [email protected] | questmaritimeservices.com.au/ FEATURE OIL & GAS

.com.au WA’s LARGEST ENGINEERING COMPANIES Ranked by number of engineers in WA, then by total staff in WA

Change Offices from Total Number of a) WA previous Year est. staff in engineers b) inter- Rank year Company name Senior executive and title in WA WA in WA state Current projects (top 5 only) Location of Head Office

Mr Chris Ashton a) 3 Worley 1978 2,000 Woodside EPCM, Chevron ABU Support, Koodaideri (Rio Tinto), Sydney, NSW 1  Chief Executive 1,700 b) 8 Alcoa Brownfields, Tanami Expansion Project

Mr Ralph Ellis a) 2 Bayu Undan maintenance services (CloughAMEC JV), Gruyere EPC Wood plc President, Operations 1978 (Civmec JV), Woodside Brownfield EPCM services, ConocoPhillips Aberdeen, UK 2  920 b) 3 Services, Asia Pacific engineering services, Caltex Maintenance Services

Forrestfield Airport Link, Metropolitan Road Improvement Mr Sheldon Krahe a) 5 — GHD 1975 643 Program, Horizon Power, Pilbara Power Program, Department Sydney, NSW 3 Manager, WA 480 b) 42 of Defence SEA 5000, Main Roads Asset Management Support Services

Mr Daniel Bree a) 1 Aurecon 1950 230 Bellevue railcar depot - Midland line extension project, Perth Docklands, Victoria 4  Regional Director, WA & NT NFP b) 20 airport extension

Mr George Nuich a) 5 Calibre Head of Mining and 1998 500 Robe Valley Sustaining Project, Western Turner Syncline 2 Sydney, NSW 5  NFP b) 17 Minerals

Mr Matthew Todd a) 3 Stantec General Manager - Mining 2005 310 Origami sculptures Perth Zoo, Fiona Stanley Hospital Family Edmonton, Canada 6  NFP b) 6 Birthing Centre, De Havilland Apartments Midland (Australia)

Mr John Macaulay a) 1 AECOM 1947 300 METRONET, NorthLink Stage 2, Metropolitan Roads Brisbane, QLD 7  Group Director - WA 200 b) 14 Improvement Alliance, Perth Stadium Station

Mr Andrew Naude a) 1 DRA Global 2018 Kalium Lakes purificaiton plant Perth, WA 8  Chief Executive Officer NFP b) 2

Far East Consortium - Elizabeth Quay, Lot 9 & 10 - The Towers Mr Alan Rimmer a) 1 WSP 1962 224 and Ritz Carlton, Far East Consortium - Perth City Link - The Montreal, Canada 9  Regional Director, WA 193 b) 10 Dorsett Hotel & Apartment Builing, Macquarie Street Hotel, Mount Holland Lithium Project, Water Mains Asset Renewal

Mr Graham Punler Chevron: Onshore & Offsore telecoms maintenance & support; a) 2 SNC-Lavalin General Manager, Mining & 1989 200 Clean TeQ Sunrise Project. Roy Hill: Senior Lenders Technical Montreal, Canada 10  190 b) 4 Advisor; Forrestfield Airport Link - Independent Safety Metallurgy Asia Pacific Assesments BHP South Flank Non Process Infrastructure, Nui Power POM Mr Peter Bennett a) 1 Clough 1919 250 Power Station, Water Corporation Beenyup Advanced Water Perth, WA 11  Chief Executive NFP b) 3 Recycling Plant (Stage 2), Rio Tinto Oyu Tolgoi , INPEX Ichthys Hook-up and commissioning

Mr Dale Harris a) 1 Hatch 1987 200 Key clients: Chevron Australia, Rio Tinto, BHP Billiton, South32, Toronto, Canada 12  Iron Ore Director, Australia 150 b) 5 Cameco and Tronox OIL & GAS FEATURE

Mr Alistair Avern-Taplin a) 1 Arup 1969 180 Optus Stadium, Perth Airport T1 Domestic and T1 Forecourt, Sydney, NSW 13  Principal, WA Office Leader 135 b) 11 Great Northern Highway, Capital Square, Elizabeth Quay

BHP: Iron Ore and Nicket West, BP: Kwinana Refinery, Chevron Mr Rob Velletri a) 8 Monadelphous 1972 4,000 Australia: Gorgon and Wheatstone, Fortescue Metals Group: Perth, WA 14  Managing Director 127 b) 12 Solomon Hub, Shell Australia: Prelude, South 32: Worsley Alumina.

Mr Glen Weir CPC Engineering 1970 350 a) 6 Evolution Mining: Cowal West Perth, WA 15  Chief Executive 110

Mr Giuseppe Leone a) 2 Aerison 1988 450 BHP Nickel West: Kwinana Nickel Refinery West Perth, WA 16  Executive Director 100 b) 1

Mr Rob Monaci a) 3 Perth Airport Skybridge, Marina East Apartments, Roe 17  Georgiou Group 1977 430 100 Kalamunda Interchange, Karel Avenue Upgrade, Hollywood Osborne Park, WA Chief Executive b) 2 Hospital Expansion

Mr Richard Hayers a) 1 Dallas, United Jacobs Engineering ANZ Vice President & 1990 200 Great Northern Highway upgrade (JV), Water Corporation, 18  100 b) 5 Woodside Engineering Services States Regional Director

Ms Marisa Barbaro a) 1 Golder Associates 1977 160 Perth, WA 19  Regional Manager 100 b) 8

Mr Stuart Crofts a) 3 Main Roads: NorthLink WA Central Section. Public Transport Laing O'Rourke Regional Director, Western 2006 NFP Authority: Perth Stadium Station and East Perth Station Dartford, UK 20  NFP b) 8 Region Upgrade. BHP: Low Level Bridges

Mr Wayne Peel a) 2 Engenium 2003 172 Perth, WA 21  Managing Director 86 b) 20

MRX Technologies – A Mr Alarico Allegri  1996 NFP NFP a) 1 West Perth, WA 22 Siemens Company Managing Director

23 GET THE FULL LIST ONLINE businessnews.com.au/bniq/engineers 156

All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email: [email protected] WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available. OilSPECIAL REPORTand Gas

SEARCH Oil and gas There are 3,731 results from our index of 102,012 articles, 10,112 companies and 38,087 people

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