unlocking in-country value · 2019-09-04 · oman forming takatuf petrofac oman (tpo) ... ep+cm...

UNLOCKING IN-COUNTRY VALUE...

30 years’ in Oman1988-2018

02 UNLOCKING IN-COUNTRY VALUE 03UNLOCKING IN-COUNTRY VALUE

Petrofac provides services across the life cycle of oil and gas assets. We have been working in Oman for more than three decades, helping our clients to unlock more value from their hydrocarbon resources.

Our teams have been supporting the Sultanate’s oil and gas industry since 1988 to design, build, operate and maintain oil and gas facilities, as well as developing local workforce competence and generating in-country value (ICV).

We provide Engineering, Procurement and Construction (EPC) services on a lump-sum turnkey basis (LSTK) as well as a range of flexible delivery models including engineering, procurement and construction management (EPCm) and convertible lump-sum (CLS).

Petrofac is uniquely differentiated as an EPC provider as we are able to tailor our commercial delivery model according to our client’s needs. Through our EPCM models we can leverage our procurement expertise to deliver value back to the client through gain share and KPIs.

Our services extend across the oil and gas asset life cycle beyond EPC to support clients through the commissioning, start-up, operations and maintenance phases. We also support the development of skilled and competent local workforces.

In everything we do, Petrofac is driven to deliver and add value to make a difference.

...for more than three decades

Com

mer

cial F

lexibility EPC Experience

Integrated Sol

utio

nsScalable Delivery

PetrofacCore Capabilities

Training & Competence

Operations Services

Decommissioning

Well Engineering

Asset Management

Engineering Services

Project Execution & Construction


TPO new, state of the art training facility in Muscat.

2018

Our project history

2015Yibal Khuff project

Petroleum Development Oman

US$900 million

2017Ghazeer Project – Khazzan (CPF) Phase II

BP

US$800 million

2013Abu Butabul and Musandam Gas Plant

Oman Oil Company Exploration and Production LLC

US$50 million

2014Khazzan central processing facilities (CPF) projects

BP

US$1.4 billion

2013Sohar refinery project in JV with Daelim


US$2.1 billion

2014Rabab Harweel Integrated project


US$1.2 billion

2017Duqm refinery project

Duqm Refinery and Petrochemical Industries Corporation

US$2 billion

2018Salalah LPG extraction project


US$600 million

2005Harweel field development project


US$1.5 billion

2005Kauther gas plant


US$250 million

2009Kauther depletion compression


US$415 million

1988Safah crude stabilisation project

Occidental Petroleum Corporation

US$12 million

1992North Oman crude stabilisation project


US$61 million

1989Gas reinjection facility

Occidental Petroleum Corporation

US$14 million

Our track record includes the provision of:

Engineering, procurement and construction (EPC) projects

Engineering, procurement and construction management (EPCm) projects

Operations and maintenance (O&M) support contracts

National workforce development, training and competence solutions delivered through our technical training facilities

Since 1988 we have delivered a significant number of oil and gas projects supporting both major national and international clients.

New Muscat office opened – capacity for

approximately 250 personnel

Training joint venture signed

with OOC/Takatuf in Oman forming Takatuf Petrofac Oman (TPO)

PDO 10-year Framework

Agreement for EP+CM services

2013 2014 2017

06

Located in the Sohar Industrial Area, 230 km north west of Muscat, the scope of work encompassed engineering, procurement, construction, start-up and commissioning services (EPCC). The contract included improvements at the existing facility as well as the addition of new refining units.

Sohar is one of the largest oil and gas projects ever awarded in Oman. The addition of the new refineries lifted Sohar’s existing output by more than 70% to exceed 185,000 barrels per day.

It can be difficult to appreciate the sheer scale of the Sohar refinery project, which Petrofac has delivered for its client, Orpic, in partnership with Daelim Industrial Co.

Our logistics team achieved a key milestone to transport, deliver and install nine heavy lift bullet tanks which are used for hydrocarbon storage and each weigh around 654 tons. Every tank is over 65 metres long, 8 metres wide, and 10 metres high. They were transported using a 60 axle self-propelled modular transporter (SPMT).

CLIENT Oman Oil Refineries and Petroleum Industries Company (Orpic)

SCOPE Engineering, procurement, construction, start-up and commissioning services

COMMERCIAL DELIVERY MODEL Lump-sum turnkey

START DATE 2013

END DATE 2017

PROJECT VALUE US$2.1 billion (with JV partner Daelim Industrial Co Ltd)

Sohar Refinery Improvement Project

185,000expected barrels per day

53 millionman-hours without a Lost Time Incident (LTI)

13,000peak manpower on site

KEY FACTS

Sohar Refinery improvement

Co

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leted P

rojects

07UNLOCKING IN-COUNTRY VALUEPROJECT ENGINEERING & CONSTRUCTION

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Petrofac delivered the engineering, procurement and construction of the central processing facility (CPF), one of the largest upstream projects ever undertaken in Oman. Production commenced from the giant Khazzan gas field in September 2017.

Khazzan central processing facilities

BP Oman is a lead partner in the Khazzan project with a60% interest. Oman OilCompany Exploration andProduction holds 40%.

The CPF includes two process trains, each having a capacity of 525 million standard cubic feet of gas per day. The project also includes a condensate processing system, power generation plant, water treatment system and all associated utilities and infrastructure.

Our technical teams in the UAE and India worked collaboratively to support a fast track timescale. During an intensive 13-month period our engineers produced more than 350 isometric drawings each week.

The first phase of the Khazzan field development is delivering over one billion cubic feet of gas per day.

CLIENT BP

SCOPE Engineering, procurement and construction

COMMERCIAL DELIVERY Convertible lump-sum

START DATE 2014

END DATE 2017

PROJECT VALUE US$1.4 billion

Co

mp

leted P

rojects

Khazzan Central Processing Facilities

1,050 mmscfd million standard cubic feet per day of sales gas

35.9 millionman-hours without an LTI

7,030peak manpower on site

KEY FACTS

PROJECT ENGINEERING & CONSTRUCTION10 11UNLOCKING IN-COUNTRY VALUE

Salalah LPG extraction project

Ghazeer Project – Khazzan CPF Phase II

CLIENT BP

SCOPE Engineering, procurement, construction and commissioning (EPCC)

COMMERCIAL DELIVERY Lump-sum turnkey

START DATE 2017

EXPECTED DURATION 34 months Ready for Start-up (RFSU)

PROJECT VALUE US$800 million

Ong

oing

Pro

jects

To build on the capacity of the recently completed CPF Phase I project, the Ghazeer project (or Khazzan Phase II) will bring on an additional train with capacity for handling 500 million standard cubic feet of gas per day (mmscfd) increasing Khazzan CPF production to 1,500 mmscfd. The Engineering, Procurement, Construction and Commissioning (EPCC) scope also includes liquid and compression trains and associated infrastructure, as well as brownfield work to connect the Phase I and II facilities.

KEY FACTS

525 mmscfdcapacity of phase II train

1,575 mmscfdtotal combined production on completion

CLIENT Salalah LPG SFZCO LLC (SLPG)

SCOPE Engineering, procurement and construction of the liquefied petroleum gas (LPG)

COMMERCIAL DELIVERY Lump-sum turnkey

START DATE 2017

EXPECTED DURATION 36 months


Located in Salalah, the capital city of southern Oman’s Dhofar province, the Salalah LPG extraction project is still in it’s early phase. Petrofac’s scope of work includes construction of the liquefied petroleum gas (LPG) unit and associated facilities. It will include tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah.

KEY FACTS

310 mmscfd80 kilometresof associated pipelines

Our recent experience with Phase I CPF will prove invaluable in supporting safe and seamless execution of the Ghazeer project. We look forward to delivering a great project for BP and Oman.

Elie Lahoud Senior Vice President, Operations, Engineering and Construction

UNLOCKING IN-COUNTRY VALUE 13PROJECT ENGINEERING & CONSTRUCTION12

Petrofac has the flexibility to tailor its commercial delivery model from fully reimbursable through to lump-sum turnkey (LSTK). We have a long track record for LSTK delivery and have been growing our EPCm offering to combine our technical capabilities with flexible commercial models aligning to the individual requirements of our clients.

With the commercial flexibility of LSTK and EPCm we have the ability to take on more of the risk profile on behalf of our clients. This includes the convertible lump-sum approach, which enables swift transition from reimbursable services to lump-sum at an agreed point.

We also provide KPI-led models and return value to our clients by leveraging our extensive procurement capabilities through a gain share approach. With our EPCm model clients maintain full control of the project construction and we provide the construction management support. This is the model we have with Petroleum Development Oman (PDO) in Oman.

The Rabab Harweel Integrated Project (RHIP) is the largest development in the portfolio of Petroleum Development Oman (PDO). Petrofac is providing engineering, procurement, construction management and commissioning support services for this ‘mega-project’ worth US$1.25 billion. Logistics has played a major role in this project which is located deep in the South of Oman around 200km from the nearest port and 80km from the nearest village.

Another key factor is the high levels of hydrogen sulphide being processed and compressed at very high pressures. As part of our solution we minimised hours on site by pre-assembling the pipe racks and transporting them safely 1,100km via road and sea to site and installed with precision fit to the millimetre.

The Yibal Khuff project is a technologically complex project due to the mega high sour oil and gas content.

As the second project being delivered by Petrofac’s EPCm business for PDO we have been able to share all our learnings from our early collaboration to form a strong strategic partnership, working as one team to deliver fantastic results. This has included staying aligned to the achievement of the scheduled milestones and implementing new ways of working, such as the introduction of a material traceability and management system for structural steel.

We are implementing work face planning to support construction packaging using Construct-Sim software. The Information Management systems implemented by Petrofac received accolades from PDO and will be used on future projects.

Petrofac has since secured an additional scope for a 42 megawatt power generation unit on site.

Rabab Harweel Integrated Project (RHIP)

Yibal Khuff Project (YKP)

CLIENT Petroleum Development Oman(PDO)

SCOPE Engineering, procurement and construction management support services

COMMERCIAL DELIVERY Cost reimbursable and gain share/KPI-led

START DATE 2014

END DATE 2018

PROJECT VALUE US$1.25 billion

CLIENT Petroleum Development Oman(PDO)

SCOPE Engineering, procurement and construction management support services

COMMERCIAL DELIVERY Cost reimbursable and gain share/KPI-led

START DATE 2015

END DATE 2019


KEY FACTS

9,600 MT 67 pre-assembled piperack modules

60,000 barrels of oil per day

29,000 MTof structural steel fabricated

KEY FACTS

218 mmscfd10,000barrels of oil per day

Ong

oing

Pro

jects

Flexible delivery aligned to requirements

FRAMEWORK AGREEMENT LIFE OF ASSET SERVICES14 15

Building on the success of RHIP and YKP, Petrofac entered into a decade-long Framework Agreement (FA) with Petroleum Development Oman (PDO) for the provision of Engineering, Procurement and Construction Management (EP+Cm) Support Services for major oil and gas projects.

Our broader service capabilities range from concept, feasibility and front-end engineering and design studies as well as operations, commissioning, start up, maintenance, training, competency, well engineering, asset management and decommissioning.

The FA agreement, signed in June 2017, underpins Petrofac’s long-term presence in Oman.

Through our local office in Muscat Petrofac will continue to grow our in-country operations for engineering and project management support.

We also provide training and competence management solutions; this includes safety and emergency response training; competence and e-learning solutions, as well as training management services and training facilities design and build.

A long-term future Beyond EPC

The framework agreement cements the effectiveness of our working relationship with PDO and paves the way for the direct transfer of knowledge, skills and lessons learned from RHIP and Yibal Khuff onto future PDO projects.

Roberto Bertocco Managing Director, EPCm

We conceptualise, design and provide modifications solutions for onshore and offshore assets and provide differentiated, outsourced asset operations management.

Through this we address the various contributors to asset performance and provide services to help our clients achieve safe, reliable and effective asset performance.

NATIONAL WORKFORCE DEVELOPMENT OPERATIONS & MAINTENANCE 1716

We deliver fit-for-purpose operations and maintenance (O&M) and facilities management solutions for clients worldwide. Our work has increased asset production, optimised efficiency, reduced OPEX and lowered lifting costs, thereby increasing economic viability and extending field life.

In Oman we have been working with OOCEP since 2013.

At Petrofac, we know what it takes to increase production safely and maximise efficiency from oil and gas operations.

Petrofac is delivering operations and maintenance at two facilities ABB and MGP on behalf of OmanOil Company Exploration and Production.

The MGP facilities, in northern Oman, comprise of an onshore plant and utilities for receiving well fluids from offshore platforms. The Abu Butabul (ABB) onshore development is in central Oman. Both production facilities are operating having been started up in July 2015 and October 2014 respectively.

We set out to help OOCEP establish a robust management system and provide a competent workforce to support the commissioning and start up of the new facilities to ensure a safe and seamless transition to operations.

As part of this we designed and implemented an operations management system (OMS) to meet OOCEP requirements and managed the operational transition from commissioning to stable operations.

This included tools and processes to support OOCEP to better manage asset integrity risks and to develop a strong HSE culture and performance. We also undertook to provide long term training programme to develop OOCEP’s employees in line with nationalisation objectives.

CLIENT Oman Oil Company Exploration and Production LLC (OOCEP)

ASSETS Abu Butabul (ABB) Musandam Gas Plant (MGP)

SCOPE Pre-operations, operationsand maintenance. Technical services support

START DATE 2013

END DATE 2020

Effective asset support

We have training specialists in the areas of Safety, Production, Operations & Maintenance, Drilling and Well Engineering, Construction Skills, Major Emergency Management and Management Development.

We provide a full range of services, including: the identification of workforce skills and competence gaps, academic and technical training delivery and competence development and assurance.

More than 400 technical trainers serve our international client base globally. Their skills are augmented by our proprietary digital software which enables us to deliver cutting-edge virtual and augmented reality training solutions.

Through our training services business we design, deliver and assure training and competency solutions to support the industry’s workforce.

Within Petrofac we bring these skills and experience together with our significant Engineering, Procurement and Construction capability to design, build and manage unique technical training facilities – which feature live plant and digital software delivery – creating an immersive and experiential training experience to fast track learning outcomes and underpin the creation of national workforce development for our clients.

In this respect we are delighted to be supporting Oman’s industry to develop its next generation.

Supporting critical training and nationalisation goals

On-site counselling support

classrooms instructor for every 15-20 delegates

max capacity per shift

dedicated multi-disciplined workshop facility

academic and technical trainers

1918 TAKATUF PETROFAC OMAN TAKATUF PETROFAC OMAN

Our most recent initiative in support of skills and competence training in Oman is a pioneering joint venture with Takatuf to form Takatuf Petrofac Oman (TPO), a leading practical, immersive and digitally-enabled technical training centre in Muscat.

TPO – a new training experience in Oman

live process plants

04augmented reality simulations

Investing in Oman’s future

TPO will support the needs of Oman’s future oil and gas industry. Through the center weblend internationally accreditedtechnical training standardswith high-tech training delivery.

TPO features state-of-the artworkshops and simulatorswith scaled down re-creationsof production facilities, using Petrofac’s engineering standards and replicating oil and gas equipment found on real plant infrastructure.

This experiential approach is blended with theory based classroom sessions and innovative digital technologies including augmented reality learning. Courses are delivered up to NVQ level 3, in line with NVQ, and ISO standards.

This extensive, hands-on, practical and immersive learning experience allows us to fast-track the development of delegates, resulting in a significant reduction in time-to-worksite autonomy.

Through its facilities and curriculum TPO will play a key role in accelerating the development of young Omanis to provide the country’s oil and gas operators with a ready-supply of qualified, competent and job-ready graduates.

The result is a unique training environment that replicates reality with reduced risk.

Karim Osseiran Global Head, Training Services, Engineering and Production Services

On-site canteen facilities


We are committed to continuing to deliver In-Country Value (ICV) for Oman.

The creation of In-country value

We are fully aligned to, and supportive of, the Government’s Omanisation agenda.

We are pleased to support the creation of in-country value (ICV) through:

• Omanisation in operations• Local vendor development• Local sourcing of goods

and services• Developing local skill sets

In early 2018, some 1,000 people were directly employed by Petrofac, around 35% of whom were Omani nationals. In addition, up to 15,000 people are employed through subcontractors and, again, many of them are Omani nationals. We also have a growing office in Muscat, and are developing a locally-based engineering and project management centre.

To date, we have invested over US$1.4 billion in ICV. 85% has been spent through local goods and services, as well as supplier development and training initiatives.

Our ICV progress:

Currently undertaking more than US$5.2 billion projects locally

Around 35% Omanisation across our projects

Growing our Muscat engineering and project management office and capabilities

More than US$1.4 billion in ICV spend to date

Implemented community programmes in the areas of education, environment and health

A few years ago the contracting community had little choice but to look outside of Oman for goods, services and skills. That is changing quickly. There is now a much wider variety and availability of local services.

Ray RichardsonSenior Vice President & Country Manager, Oman

023UNLOCKING IN-COUNTRY VALUEPETROFAC IN OMAN22

March 2018

We are proud to have served Oman’s oil and gas industry for 30 years.

We look forward to the next stage of our journey and to make a lasting contribution for the next generation.

A powerful combination

Life of asset services; unlocking more value

Discover the difference at petrofac.com

Depth of experience

Breadth of capability

unlocking in-country value · 2019-09-04 · oman forming takatuf petrofac oman (tpo) ... ep+cm...

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