magazineHQHydrocarbonsQuarterly

HQmagazineHydrocarbonsQuarterly

Managing EditorHeather Harrington

Production Manager & EditorJessica Taylor

Produced byWorleyParsons Marketing & Research Group

Contactwww.worleyparsons.comhqmagazine@worleyparsons.com

p.4 Focus on Zero Harm

p.5 Thought Leaders Introducing the Arctic Pipeline Routing Evaluation Tool

p.6 Global Awards

p.7 OTC Houston

p.8 WorleyParsons Consulting Enhancing project viability

p.14 Project Report A look at Chevron's Rosebank development

p.16 Gastech 2014 WorleyParsons shares knowledge and expertise at this industry- leading gas conference

p.18 Regional Report A review of our work in the remote, hostile waters of the North Sea

p.20 Conference Report

p.22 Oil Spill Tracking Buoys Using innovative technologies to understand and prevent oil spills

p. 23 Office Intel See what’s happening in our locations around the world

Issue 10Q4, FY2014

The offshore hydrocarbons industry is often uncertain and complex. EFDS provides a structured and disciplined approach to clarifying, framing and evaluating exploration and production optimization decisions supported by deep technical and financial expertise. Refer to page 10 to learn more about this new consulting practice and how our high-quality decision-making methods and tools mitigate often ignored non-technical issues.

In this issue:

Content

Enhanced Field Development Solutions (EFDS) for exploration and production optimization

p.10

On the cover:Subsea Field Layout

© WorleyParsons 2014

HQ Magazine Message from the Editors 3

As the 2014 fiscal year comes to a close and we near the 10th anniversary of when Worley acquired Parsons E&C and became WorleyParsons, we are keenly aware of the impact the changes seen in the past year—as well as the past decade—have had industry-wide. For WorleyParsons, this has meant building our strategy around better anticipating and meeting the ever-changing needs of our customers, particularly in the hydrocarbons sector.

This growth has come through organically developing our people, technological capabilities and the breadth of services we offer. In the offshore sector, the expansion of our services has also come through the acquisitions of leading international project services companies SEA Engineering in 2007 and INTEC in 2008 (now known as INTECSEA). This strategically positioned WorleyParsons to provide comprehensive offshore solutions for projects in growing regions like the North Sea (page 18) where we’ve supported major projects including Chevron’s Rosebank development (page 14). To learn more about our offshore and deepwater capabilities at this year’s Offshore Technology Conference (OTC), check our OTC Houston presentation schedule (page seven) and be sure to visit us at booth #5081!

The industry now requires a greater level of specialized services than ever before. WorleyParsons Consulting (page eight) exists to meet this demand by applying our expertise and resources to support project planning and decision-making. One of these consulting practices is Enhanced Field Development Services (page 10), which brings innovative technical solutions to our customers' projects while utilizing quality decision making (QDM) practices to help mitigate the often costly risks associated with offshore investments.

Today, as you may already know, WorleyParsons is continuing to adapt to the needs of the industry and our customers by undergoing a reorganization to simplify and focus our business. While updates such as the ones provided in this publication may be put on hold while we solidify our new structure, our team members will continue to engage with you on any business we have together via normal communication channels. We hope you enjoy learning more about WorleyParsons through this issue and look forward to seeing you at OTC Houston.

Message from the Editors

...this has meant building our strategy around better anticipating and meeting the ever-changing needs of our customers...

Heather Harrington

Managing Editor, HQ Magazine

Jessica Taylor

Production Manager & Editor, HQ Magazine

4 HQ Magazine Focus on Zero Harm

Two Million safe work-hours for Chevron’s Indonesia-based Rekind WorleyParsons Project

In April 2013, Rekind WorleyParsons achieved one million man-hours without a lost-time incident (LTI) on the Chevron Pacific Indonesia (CPI) Engineering and Construction Management (ECM) Contract. Achieved in just a little more than 12 months of operation, the total recordable incident rate (TRIR) was 0.05-the lowest rate recorded since Chevron started operations in the 1950s. In February 2014, Rekind WorleyParsons eclipsed this impressive achievement by surpassing two million man-hours without a lost-time incident on this project, solidifying our committment to zero harm.

The contract is a joint operation between WorleyParsons and Rekayasa Indrustri working with CPI to implement construction and maintenance projects designed to sustain production, increase recovery and improve reliability from existing Sumatra reservoirs in the Duri field that are producing more than 350,000 BOPD. To accomplish this, Rekind WorleyParsons has developed an integrated plan to effectively manage more than 5,000 personnel who represent six major construction contractors. We also have more than 650 people working on this major Improve contract who are supporting the expected drilling of approximately 200 wells in 2014. This will include engineering new well pads

and hook-up facilities from the Jakarta office as well as managing the construction contractors in Duri. Heavy oil expertise from Houston and Calgary is also being employed to deliver a full suite of innovative concepts, tools and systems to manage the complex program of works executed at the Duri Field—the largest in Chevron’s Sumatran portfolio and one of the world’s largest steamflood developments. This is a major accomplishment considering the challenges faced during the first year of operation, including the mobilization of people, equipment and infrastructure, and the transition of services from the incumbent.

Rekind WorleyParsons has brought a new focus to safety on site and initiated key programs such as the “Champions League” that promote and encourage safety among the construction contractors. CPI and Rekind WorleyParsons continue to work together and implement new systems and procedures to ensure world class safety standards are maintained and that the safety of our people and our business partner’s personnel is not compromised. Expected to run through March 2017, our everyday work on this project—and milestones such as these—represent a significant opportunity to continue to build our relationship with Chevron.

For more information on WorleyParsons’ commitment to zero harm, visit www.worleyparsons.com/AboutUs/Pages/HealthSafetyandEnvironment.aspx

Focus on Zero HarmFocusing on safety throughout WorleyParsons' global operations

HQ Magazine Thought Leaders 5

Thought leadersArctic Pipeline Routing Evaluation Tool Presented at ATCby Julie Burke, Joseph Cocker and Chuck White

At the third annual Arctic Technology Conference (ATC), INTECSEA’s Arctic leaders presented six papers to industry delegates from around the world, one of which discussed a new outlook on Arctic pipeline routing evaluations.

Titled “Arctic and Sub-Arctic Pipeline Routing Evaluations Enabled by Spatial AHP,” the paper links a decision-making tool with a detailed GIS map, resulting in a pipeline routing solution for complex cold regions. The analytical hierarchy process (AHP) is a multi-criteria decision-making procedure, (outlined in Figure 1) that drives project teams to adopt a disciplined approach to resolve difficult problems, such as routing a pipeline in an Arctic or sub-Arctic environment. This methodology breaks the problem into several smaller issues; for instance, the potential for ice gouging, avoidance of environmentally sensitive areas, material cost versus length and surficial sediments. By performing pair-wise comparisons against each issue separately, a criteria weighting is developed that prioritizes the issues with the most important having the highest weight. Each issue is linked to a single layer on a GIS map, which is then given a

global weighting. Using the cumulative score along a pipeline route through the geographical area, a “heat map raster” is constructed to show the most optimal route.

Although flow assurance wasn’t a direct input into the methodology of this analysis, it was not ignored. Two parameters—profile indicator (PI) and climb—are a function of the bathymetry and seabottom roughness and can identify any potential liquid holdup locations along the route. PI is a dimensionless number that can be used as a rule of thumb for predicting operational issues related to liquids handling in a line; terrain is a factor that may

induce liquid hold-up and climb is the summation of all the upward sloping sections of a pipeline. Both PI and climb can be easily derived from the area’s bathymetric data and are assessed after the pipeline route is established to compare flow assurance issues between different routes.

A case study illustrated this decision-making process with the goal of identifying a preferred pipeline route offshore of Newfoundland from the Orphan Basin to Placentia Bay. This region presents a challenging pipeline routing scenario, with issues including ice gouging, slope and stability, bathymetry, environmental sensitivity, fishing grounds and challenging soil conditions. Following AHP, the study team developed the map at right (Figure 2).

Within each layer, a grid of 1,000 meters by 1,000 meters is assigned with a penalty score based on the criteria weighting and the risk factor of the issue, which is color coded from red (high risk) to blue (low risk). When all grid values from all layers are combined, the penalty factor of a pipeline route is created. By observing where big color changes are occurring, the project team readily knows where to adjust the route to minimize the penalties, thus providing a solution for an effective pipeline route across or around high-risk areas. The most efficient route is shown as a black line on the map in Figure 2.

Although the capabilities generated and applied have been kept relatively simple to demonstrate the principles, the application can be used to benefit highly complex pipeline route selection challenges. The case study provides a real-world assessment to analyze the overall evaluation of pipeline routing. To download the full paper, visit: www.onepetro.org/conference-paper/OTC-24602-MS.

Figure 1 – Analytical Hierarchy Process (AHP) Multi-Criteria Decision-Making Methodology

Figure 2 – Study Case Identifying a Preferred Pipeline Route using Spatial AHP

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execution of the project scope. The portion of the project that WorleyParsonsCord is responsible for is scheduled to be completed by July 2015.

Andrew Wood, Chief Executive Officer of WorleyParsons stated: “WorleyParsons is excited to be working with Pembina on the Redwater Fractionation project. We look forward to furthering our relationship in working together to achieve the successful delivery of this project.”

WorleyParsons awarded Canadian Bitumen Refinery ProjectWorleyParsons has been appointed to provide detailed engineering and procurement services for the tankfarm, piperack and flare units of Phase 1 of the North West Redwater Partnership’s greenfield bitumen refinery project, located in Sturgeon County, approximately 45 kilometers northeast of Edmonton in the Alberta’s Industrial Heartland area.

The work will be performed by WorleyParsons in its Edmonton, Toronto and Mumbai offices, beginning immediately. Phase 1 commercial operations are targeted for September 2017.

The North West Redwater Partnership is a joint venture between North West Upgrading Inc. and Canadian Natural Upgrading Limited—a wholly owned subsidiary of Canadian Natural Resources Limited. Phase 1 of the Sturgeon Refinery project is designed to process 50,000 barrels of bitumen per day.

Commenting on the award, WorleyParsons Chief Executive Officer Andrew Wood said, “We are pleased North West Redwater Partnership has selected WorleyParsons to be part of a world class bitumen refinery in Alberta’s Industrial Heartland, the first greenfield refinery built in Canada since 1984.”

Contract for Hook-Up and Commissioning of the Martin Linge platform, NorwayRosenberg WorleyParsons has been awarded a hook-up and commissioning contract by Technip for the Martin Linge platform operated by Total E&P Norge AS in the Norwegian North Sea.

Onshore preparations will start immediately with mobilization to France and subsequently South Korea, followed by the establishment of a site team at Rosenberg WorleyParsons’ facilities in Stavanger. The main activity will be executed offshore in mid-2016.

This is the third hook up and commissioning contract that Rosenberg WorleyParsons has won in recent years and follows the current Ekofisk Living Quarters platform project. This is also the first significant contract that Rosenberg WorleyParsons is executing with Total E&P Norge as the end customer.

“We are very pleased to have been awarded this contract. We look forward to working with Technip over the next few years in the successful delivery of the Martin Linge platform,” says Andrew Wood, CEO WorleyParsons.

WorleyParsonsCord awarded Construction Contract for Pembina Pipeline Corporation’s New Redwater FractionatorWorleyParsons is pleased to announce the award of a contract for the general mechanical construction of a greenfield fractionation facility north of Pembina’s existing Redwater NGL Fractionation Plant near the town of Redwater in Alberta, Canada. This project effectively duplicates the existing Redwater fractionation facility built in 1998.

WorleyParsonsCord, the construction group for WorleyParsons in Canada, will be responsible for

Global AwardsMajor Hydrocarbons contracts awarded this quarter

6 HQ Magazine Global Awards

HQ Magazine OTC Houston 7

OTC HoustonLearn from our offshore and deepwater experts at the offshore oil and gas industry's premier event!

Monday 5th May

TIME ROOM TITLE AND NUMBER 10:10 606 Reliability Analysis of Lazy Wave Steel Catenary Riser (LWSCR) Using Real- Time Monitoring Data - 25188, L. Zhang, C. Wu, L. Liu, M. McQueen, INTECSEA

15:00 604 State-of-the-Art SCR Qualification Program for 24 inch x 40 mm Thick Clad Pipe with Upset Ends for the Browse Project - 25217, B. Mekha, Cuneiform Offshore Consulting LLC; B. Hawkey, Woodside Energy Limited; B.D. Chandler, INTECSEA; B. Fazackerley, Microalloying International, Inc.; D.M. Stevens, D.M. Stevens & Associates, Inc

Tuesday 6th May

TIME ROOM TITLE AND NUMBER 10:10 602 Flow Assurance Issues Related to Flexible Riser and Pipeline System Configuration - 25428, L. Yu, S. Mohammad, S.A. Bufton, M. Li, INTECSEA

1:00 312 Novel Dry-Tree Semisubmersible Solutions for Deepwater Marginal Field Development - 25351, A.M. Mansour, D. Kumar, R. Zuccolo, J. James, H. Heidari, INTECSEA

Wednesday 7th MayTIME ROOM TITLE AND NUMBER 10:10 312 BP Angola PSVM Project: Production Flowline Lateral Buckling Design - 25396, P.A. Cooper, INTECSEA; M. Crawford, BP; M. Bell, HMC

10:30 600 Decommissioning Costs Can Be Reduced - 25247 A. Stokes, WorleyParsons

Thursday 8th May TIME ROOM TITLE AND NUMBER 10:55 602 Case Study of Geotechnical Site Investigation using a Seafloor Drilling Unit, Large-diameter Cores and Coring-vessel-deployed Cone Penetration Tests in the Gulf of Mexico - 25378, C. Caruthers, R. Hartsfield, A.G. Young, D. Spikula, J. Dobias, Forum Energy Technologies; M. Fitzpatrick, Hess Corporation; B. Remmes, INTECSEA

15:00 312 Hybrid “Split” VFD Poses to Significantly Extend Subsea Processing Tieback Distance - 25278, R.W. Voight, INTECSEA

15:50 602 Challenges of Lowering a Live Subsea Buried Gas Pipeline by 6m - 25211, N.I. Thusyanthan, OIS Ltd; K.A. Williams, Vision oil and Gas; T. Selwood, OIS Ltd; P. Smith, NCS Survey Ltd; S. Jegandan, INTECSEA; D.J. Robert, Monash University

16:10 602 Field Development using Semisubmersible Floating Production System with Steel Catenary Risers in Western Australia Harsh Environment - 25265, A.M. Mansour, S. Bhat, D.R. Pasala, D. Kumar, INTECSEA

Connect with us atbooth #5081

Offshore Technology Conference5-8 May 2014, Reliant Park - Houston, TX, USASee below for scheduled technical presentation topics, times and locations at this year’s OTC.

Scan this code to learn more!

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WorleyParsons ConsultingApplying experience and expertise to project planning and decision-making for optimal outcomes

The vagaries of the global economy can mean that a project that was once viable has suddenly become not so. The era of the mega-project is drawing to a close in many regions as costs and other uncertainties make them unviable. As a result, more and more operators are looking to make better use of existing assets and extend their lifespans.

This generally requires the application of a combination of expertise and experience; needing highly qualified people who can find solutions to help operators achieve their goals. In essence, the industry is seeing a growing need for consultants.

Investing in SuccessEnergy projects represent incredible investments from their operators, but also have massive implications for the operators' shareholders and customers. However, because the ever-evolving energy and resources landscape is subject to disruptive forces, the internal

planning challenges operating companies face are further complicated. In recent years, uncertainties related to the reduced growth of oil consumption as a result of the global recession, regulatory policy and the impact of abundant shale gas and oil supplies has brought many planning efforts to a standstill and are requiring operators to become more adaptive and strategically flexible. This volatility necessitates strategic decision-making that is informed, efficient, cost-effective and consistent.

The ever-changing energy landscape means that the scope of a project—and therefore the needs of the operator—change, and so too must the services provided. To anticipate the changing needs of operators and their assets, a substantial depth of knowledge and understanding of project lifecycles, the industry and its players—particularly our customers—is required. As WorleyParsons' business has grown from design to full EPCM services, so too have our capabilities and the depth of our expertise. Because operators face unique and often unforeseen challenges, the application of the right people with specific skill-sets backed by industry experience is essential to maximizing operator return on investment.

Seamless IntegrationWorleyParsons Consulting was established to apply front-end and technical consulting capabilities

WorleyParsons Consulting Practices

tailored to our customers’ challenges during any stage of the project lifecycle—from inception through to the decommissioning of facilities. In doing this, we provide direct access to our global network of more than 2,500 consultants who work together with local project teams anywhere in the world—whether for a stand-alone or mega-project. Providing specialist advice across several consulting practices (including Enhanced Field Development Solutions (EFDS), which is featured on page 10 of this issue), our consultants are completely integrated into the greater WorleyParsons business utilizing nearly 40 years of consulting experience. With specialist groups located in every region of the world, the scope and breadth of our capability—backed by our global project delivery experience—is such that we have a greater understanding of impacts that may occur in one area due to decisions made in another.

Working TogetherConsulting is about understanding and preparing for a future that is uncertain and this requires advisors to look at strategic business drivers that can vary from operator to operator. Because energy companies face unique challenges, service providers must be intensely focused on building long-term relationships based on integrity and trust. Part of this is being where our customers are; we currently have Consulting centers of excellence established in Australia, the US and in

the United Kingdom, where around 30 percent of our business has traditionally been from providing consultancy services. Our consultants also serve growing markets in the Middle East, North Africa and Canada where we are currently establishing centers of excellence. To further ensure we're aligned with our customers, our consultants are co-located among delivery teams to ensure synergies in our approach to promote agility and responsiveness as project needs change. Rather than just focusing on one area, we have the ability to provide holistic services that cover the full project lifecycle.

On the HorizonConsulting will continue to grow in importance for both WorleyParsons and our customers. For us, it’s about ensuring we have the right portfolio of expertise to find solutions to our customers' challenges, which are becoming more complex. We will continue to establish our centers of excellence around the world and respond to the market, ensuring we have the right consultants to address and resolve the issues our customers face.

For more information about WorleyParsons Consulting, please visit www.worleyparsons.com/consulting.

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10 HQ Magazine Enhanced Field Development Services

Offshore investments are constantly exposed to unpredictable complexities and uncertainties—from hidden hydrocarbons at the reservoir to shifting policies in the market. Reservoir and non-technical ambiguities faced by WorleyParsons’ customers demand high quality decision-making practices as well as innovative technical solutions.

In addition, numerous non-traditional players (e.g. equity partnerships, power/energy utilities and government entities) are seeking new levels of engagement and/or exposure in some of the riskiest offshore arenas. WorleyParsons Group has launched the Enhanced Field Development Solutions (EFDS) initiative for full field development planning support services not previously pursued in the earliest front-end stages of asset identification and maturation.

EFDS brings together a broadened range of capabilities and quality decision making (QDM) practices in a way that builds upon WorleyParsons’ offshore engineering and front-end study strengths to serve the market’s needs from the reservoir through to the boardroom. EFDS addresses these challenges by uniting subsurface, infrastructure and financial expertise and applies QDM practices to our customers’ development projects. This service delivers capable thinking to structured and disciplined evaluation of technical and non-technical aspects of a portfolio to consistently

Enhanced Field Development Services

achieve high, sustainable value for our customers' investments. More specifically, EFDS provides:

• Decision quality consulting, facilitation and training

• Technology evaluation, qualification and development planning

• Advanced commercial evaluation consulting

• Subsurface evaluation consulting: geology and geophysics; reservoir, drilling and completions engineering; reserves audit and evaluation; and subsurface and management training.

Developing a Culture of Decision QualityMajor operators (and numerous industry studies) have recognized the importance of front-end planning for complex offshore field development projects. Chevron has pointed to the cultural shift that has occurred over the past 10 years since the company’s leadership deepened their commitment to QDM practices and improved front-end planning as driving much of their financial success (ref. Kirkland’s YouTube video and Spetzler, SDG Whitepaper, 2011).

Globally, an increasing number of smaller companies and equity players are being drawn to the attractive, but risky, offshore exploration and production (E&P) frontiers in remote locations. While aggressively pursuing these new opportunities, investors will want to see the kind of sustainable performance being realized by best-in-class super-majors like Chevron; however, smaller players will not have the same range of resources at their disposal as the super majors and will need to turn to companies that can help them realize top-tier returns when big investment decisions must be made.

HQ Magazine Enhanced Field Development Services 11

This increased demand for specialized services—combined with the increasing complexity of the fields—pushes traditional service companies to offer services outside of their usual boundaries. WorleyParsons and other long-time service providers are responding to this pressure by expanding capabilities to meet the new E&P company challenges.

Managing Risk in an Expanding MarketChanges in the industry are being shaped by a larger share of non-traditional E&P activity, including more frontier developments, especially deepwater projects. Additionally, these projects are growing in size and complexity while also using more new technologies than ever before, and E&P companies

are also increasingly pushing to start production in record time. The accelerating cost and complexity of these developments means that the value of and importance placed on the outcomes of each major decision an E&P company makes is even higher.

EFDS brings together both internal and external resources to provide the comprehensive scope of services that the biggest offshore E&P “gamblers” need and that only a few can afford to build in-house. Figure 1 shows how EFDS covers this expanding market’s needs under the QDM banner.

Decision Quality

SubsurfacePermitting

Subsurface (Infrastructure)Commercial Political

Asset/Project Management - Customer Interface

Practices: Front-End Processes, Master Plans, Workshops, Technology Evaluation/Development, QDM Audit/Coaching

Financial & Mgmt Partner

(Deloitte)

WorleyParsons Advisory EcoNomicsTM and Evans & Peck

WorleyParsons / INTECSEA

Comparion CORETM (AHP) & MCDA/Non-Economic Screening

Regional Subsurface

Partners

EcoNomicsTM

DELT∆TM

Decision Frameworks

DTrioTM

TreeTopsTM

EcoNomicsTM

DELT∆TM

Dec

isio

n To

ols

Who

Ex

ecut

es?

Figure 1 - Through EFDS, internal and external resources provide comprehensive services and decision quality.

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12 HQ Magazine Enhanced Field Development Services

Better Decisions Yield Better Results Decision making can be difficult and becomes even more difficult when groups of people are involved. Many companies have taken a team approach to decisions and this complexity can be compounded when partners or alliances are included. The decisions being made are becoming more intricate, the investments more significant and the cost of making a poor decision more damaging. In businesses where risk and uncertainty are routine, the case for change has been demonstrated. When companies use a proven decision process, they shorten the decision making timeframe, they hold more informed discussions with their executives, they retain more knowledge and they execute more well-run projects. In short, on average, they make better decisions and get better results. This proven QDM process is supported by our EFDS tenets.

WorleyParsons has already gained great respect for our capabilities in decision support through our Select, Consulting, EcoNomicsTM and Evans & Peck Advisory services. This reputation reflects help provided to customers for major front-end and Improve projects over many years. EFDS increases focus on ensuring that advanced methods bring customers the greatest rewards from the application of QDM practices through well-defined, front-end planning processes (including workshops) run by top professionals in advisory roles, as well as decision quality auditing and QDM practices training and coaching.

Tools That Make a Commerical DifferenceTo support the assessment of technical and non-technical risks associated with commercial ventures, WorleyParsons utilizes world-class methods and tools, including DELTΔTM, which is managed through our sustainability service, EcoNomicsTM. We also employ the analytical hierarchy process (AHP) for advanced multi-criteria decision framing and analysis using

the commercial package Comparion CORETM from Expert Choice Inc. Relatively simple multi-criteria decision analysis (MCDA) can be accomplished quickly with internally developed MCDA software. The Advanced Analysis group employs Discrete Event Dynamic Simulation (DEDS) to assess the productive efficiency ("availability") of complex systems.

WorleyParsons is a leader in advancing new technologies for deployment in the challenging offshore environment—especially in the world’s deepest waters and harshest climates. Within EFDS, top professionals will serve as advisors to customers considering the risky and expensive investments that could make the commercial difference for their frontier investments.

Modern QDM practices, like the value of information (VOI) technique of decision and risk analysis, allows EFDS practitioners to determine the risked value of any path that may be taken toward (or around) deployment of a new technology. This kind of decision is effectively supported by the use of specialist software (DTrioTM and TreeTopsTM) from our strategic partner, Decision Frameworks, for management of reservoir (and related) uncertainties. VOI asks:

”With respect to improving eventual financial results, is the expected cost for a specific path forward justified by the value of imperfect information that may (or may not) be gained?”

Our established service capabilities, including conceptual engineering studies (infrastructure), permitting and environmental services consulting, and commercial advisory services, are even more highly attuned to the optimal field development strategies with guidance and commitments to action that are generated by improved application of QDM practices.

HQ Magazine Enhanced Field Development Services 13

Partnering for SuccessWhile the company has practiced many aspects of field development planning for a number of years, we are also proud of our recently-announced global alliance with Decision Frameworks, which was featured in the last issue of HQ Magazine. The alliance will grow over time to include the extended offering into most of WorleyParsons’ businesses globally, but began with a focus on the upstream oil and gas industry in North America and Europe.

Our alliance with Decision Frameworks gives us an opportunity to grow and diversify our business, particularly into projects in the earliest phases of an oil or gas field’s life and also those which draw upon best-in-class methods in facilitation, field valuation and decision quality methods. It draws upon skill sets from across our organization, meaning increased access to a variety of project and business opportunities for our people.

Led by WorleyParsons' EFDS Global Director, Chuck White, the allied group is responsible for exploring opportunities that are aligned with, but in addition to, our traditional areas of activity and reflect our commitment to growth. Chuck says, "Our customers look to us to deliver innovative field development solutions that bring them a competitive advantage and allow them to achieve consistently high value from their investments. This alliance is a key part of that strategy to offer a complete complement of skills and personnel experienced in all aspects of oil and gas developments."

Value through Managing Non-Technical RiskNon-technical risks such as commodity prices, water management, waste management and disposal, taxes and market pricing, land availability/footprint restrictions, regulatory uncertainty and community acceptance have been determined to heavily outweigh technical issues in causing serious major project setbacks.

Managing these non-technical risks through value-focused efforts implemented at the very start and throughout an asset's lifecycle lowers engineering costs and shortens schedules. Avoiding decision traps and the active planning and management of risks prevent an asset from continuing down wrong or inefficient paths to execution. These practices—with the help of rigorous contingency planning—can avoid undesirable escalations in CAPEX.

Working together with our partners and customers, EFDS facilitates customer project teams to clarify, frame and evaluate many important decisions—from exploration to production optimization and decommissioning—through the use of a structured and disciplined approach and deep technical and financial expertise.

For more information on WorleyParsons’ EFDS, please visit: http://www.worleyparsons.com/consultingpractices/EFDS. For more information on Decision Frameworks, please visit www.decisionframeworks.com.

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14 hq magazine Global awards and recognition

Project reportCUSTOMER Chevron North Sea LimitedPROJECT Rosebank DevelopmentLOCATION West of Shetlands, United Kingdom

On the Rosebank project, Chevron has realized cost and schedule

savings from WorleyParsons Group's integrated execution through improved

efficiency and fewer interfaces.

""

HQ Magazine Project Report 15

WorleyParsons Group is dedicated to bringing our customers value through strategic partnerships and long-term relationships, as seen through our Strategic Contractor Relationship (SCR) with Chevron. We have more than 40 years of experience working with Chevron and have executed their projects on six continents over the last five years.

In October 2010, WorleyParsons Group was contracted to complete an extensive pre-FEED of Chevron’s Rosebank development, a deepwater facility located in approximately 1,130 meters of water in the harsh environment northwest of the Shetland Islands. WorleyParsons and INTECSEA seamlessly integrated their respective analytical capabilities and technical expertise to successfully deliver pre-FEED for the full field facilities including topside, hull, marine, mooring, subsea and gas export systems. This success enabled WorleyParsons Group to effectively bid and win the FEED in a competitive tender, and work on the FEED started in July 2012. The FEED scope included topside, hull, marine systems, mooring and riser systems along with associated subsea systems.

Rosebank FEED execution strategy was further enhanced by employing a “One Team” approach that co-located all team members in a single office—Chevron, WorleyParsons and INTECSEA. This integrated project execution approach demonstrated increased efficiencies by reducing external interfaces, review cycles and decision making timescales, allowing for accelerated FEED delivery while maintaining the highest levels of safety and quality.

Chevron’s Rosebank Facilities project manager, Alan Scott commented, "On the Rosebank project, Chevron has realized cost and schedule savings from WorleyParsons Group's integrated execution through improved efficiency and fewer interfaces. The co-located team has benefitted from improved communications and increased collaboration, which are essential for ensuring schedule preservation."

The close alignment and collaboration between Chevron and WorleyParsons Group and our proven ability to ensure high-quality integrated design delivery within a tight schedule has led to our consideration as the potential detail design and procurement sub-contractor for the execution phase of the project.

ROSEBANK'S SUBSEA DRILL CENTER

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16 HQ Magazine Gastech 2014

Gastech 2014Gastech sets its sights on growing the LNG business regionally and globally

Gastech—the world's largest gas conference—brings together technical decision-makers in LNG and LPG shipping to share experiences and insights into the growing industry. WorleyParsons participated in this year’s Gastech, which began on Monday 24 March, with Paul Sullivan—WorleyParsons’ global director of LNG and FLNG, and co-chair of the Gastech Governing Body—giving the opening speech. Paul highlighted the event’s benefits of bringing the world's gas leaders

together and the ever-changing opportunities in the LNG market. Addressing the delegates he said,

“The challenge we face is keeping gas development economically competitive.”

Gastech was held in Seoul, South Korea this year, which was a strategic move by organizers to shift the conference to the growing LNG market of East Asia. It was hosted by KOGAS, the world’s largest single importer of LNG and the major gas supplier for South Korea—a country which is a growing economic powerhouse in the LNG

HQ Magazine Gastech 2014 17

Another WorleyParsons graduate commented,

"I was exposed to both commercial and technical ideas and challenges that the LNG industry is experiencing at the moment.”

Our experts were also Tweeting important commentary on the event and industry to our Twitter followers over the course of the conference, and some of our representatives were even featured in Gastech promotional videos.

The next Gastech will be held in Singapore in keeping with the event organizers’ theme of East Asia, and will shadow the growth of the LNG business itself.

Interact with WorleyParsons experts in real time on Twitter:

@PaulSullivanLNG @TomLattaWP

market and is driving the demand for natural gas globally. WorleyParsons representatives from the US, UK, Canada and Asia-Pacific regions joined together to attend the event which operates on an 18-month cycle and is currently in its 42nd year.

Paul also delivered a presentation at the commercial stream of the conference, discussing the implementation of mini-LNG schemes in North America to decrease flaring and make use of gas through small-scale LNG solutions. Tom Latta, Select senior process engineer in our Toronto operations, presented at the exhibition's Centres of Technical Excellence, highlighting holistic methods for MEG recovery unit design. Vice President Hydrocarbons, Patrick Dougherty, based in California, took part in the invitation-only VIP Program, which brought together an elite gathering of the industry’s most influential political and commercial stakeholders.

WorleyParsons is honored to have had eight young engineers selected for the Gastech Young Engineers Foundation, an initiative aimed to support the next generation of engineers moving the industry forward.

One graduate from our Singapore office appreciated the window of opportunity Gastech provided:

“Listening to the distinguished speakers has definitely helped me better understand the LNG industry.”

The graduates selected for the Gastech Young Engineers Foundation

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18 HQ Magazine Regional Report

Regional ReportWorleyParsons' operations in the North Sea

The North Sea is considered one of the most important offshore oil and gas basins in the world.

It is divided into five exclusive economic zones with rights to explore and exploit in its waters designated to the United Kingdom, Norway, Denmark, Germany and the Netherlands. With about 42 billion barrels already exploited, North Sea oil production peaked in 1999 at nearly six million barrels per day and has steadily declined since. Despite this, it is estimated that as much as 24 billion more barrels could remain, which translates to approximately 30 to 40 more years of production in this region.

Natural gas production was nearly 10 trillion cubic feet in 2001 and continues to increase, even though a sharp decline in British gas production has been realized. The British and Norwegian sectors hold most of the remainder of the large oil reserves, as evidenced by estimates that the Norwegian sector alone contains 54 percent of the sea's oil reserves and 45 percent of its gas reserves. Economic reliance on this industry has been proven by the North Sea's 2012 supply of 67 percent of the United Kingdom's oil and 53 percent of its gas requirements, as well as its employment of around 450,000 people across the UK.

WorleyParsons' presence in the North Sea dates back more than five decades, but has significantly increased with the acquisition of Rosenberg WorleyParsons. This acquisition, which was detailed in a previous issue of HQ Magazine, demonstrates our commitment to the region and has brought in a major fabrication component that enables us to better serve our customers in the area. Project history highlights in the region include the pre-FEED and FEED for combined FPSO and subsea design for Chevron’s Rosebank project in the challenging Atlantic Margin (featured on page 14 of this issue). We have tackled the high pressure,

high temperature issues on both the facilities and pipelines for ConocoPhillips’ Jasmine project and we have also brought our worldwide expertise in heavy oil to the North Sea for EnQuest’s Kraken project and in Statoil’s Mariner and Bressay fields.

The impact of North Sea oil and gas spreads across economic, political and technological bounds as the industry continues in its efforts to maximize the region's potential. Like most other oil and gas markets in the world, the region has seen its fair share of volatility. Much of the 1960s was defined by dry wells or fatal safety incidents such as the sinking of BP's Sea Gem in the West Sole Field in September 1965 and the tragic July 1988 Piper Alpha disaster—unquestionably the North Sea’s defining offshore tragedy. History has seen political and regulatory issues plague the area despite major gas finds and advances in technology: two oil crises affected the industry in the 1970s, and the 1980s saw consumer prices well below sustainable levels.

Although the industry has worked through most of the issues preventing success in earlier decades, North Sea oil is now at the center of Scotland's campaign for independence from the United Kingdom, which has major tax—and therefore political—implications. Whether or not Scotland becomes independent, operators and service companies alike must recognize and be prepared for changes in the socio-political landscape that are likely to occur. As investments in infrastructure have been recommended to improve efficiency, front-end planning must become a priority. WorleyParsons' history and continued presence in the region, as well as our proven consulting capabilities, sets us up to seamlessly adjust to the changing needs of the industry, as well as changes in the regulatory environment of the region. This is vital to successfully deliver tailored projects and services to our customers and their North Sea assets.

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Traversing Rough WatersThe North Sea is subject to some of the most dangerous and unpredictable conditions, making drilling particularly hazardous and claiming many lives as a result. Last year, WorleyParsons recognized the 1988 Piper Alpha disaster—one of the most devastating accidents in offshore oil and gas production history—with the creation of the "Step Change in Safety" video, in association with Oil & Gas UK. The video reflected upon the event and highlighted the changes that have been instituted to prevent future incidents.

In addition to presenting safety challenges, the conditions also make extraction a costly process, requiring the development of new technologies to efficiently and safely do businesses in the region. The exploration of the North Sea has necessitated continually pushing the edges of technology over the course of the past half century. The use of 2-D seismic, followed by 3-D and 4-D seismic; sub-salt seismic; immersive display and analysis suites; and supercomputing to handle the flood of computation required have all come to the aid of the industry. INTECSEA—WorleyParsons' subsea and floating systems division—is an industry leader in developing innovative technologies to safely and cost-effectively reach greater and greater depths, allowing our customers to extract in areas previously thought to be unreachable.

Despite these challenges, WorleyParsons has recently secured major contract awards in the North Sea region, including the front-end engineering and design (FEED) and capital cost estimate for a gas processing project operated by Apache North Sea Limited at the Scottish Area Gas Evacuation (SAGE) Terminal in St. Fergus, Scotland. This project is supported by integrated teams located in local UK offices, utilizing workshare to provide customized and flexible support and ensure the success of the project. Also recently awarded was the hook-up and

commissioning (HUC) for Total's Martin Linge platform in the Norwegian North Sea, which pulls from the valuable experience our teams gained in delivering the recently-completed Ekofisk Living Quarters Hook-up Project to ConocoPhillips Scandinavia AS (COPSAS). With 552 en-suite single-person cabins, 75 offices, a hospital, recreational areas, a brand new telecommunications center, two helicopter hangars, a heli-deck that can accommodate 50 daily flights and an emergency center with 10 free-fall lifeboats, the Ekofisk 2/4L Complex is the largest offshore living quarters in the North Sea.

There is also a significant opportunity to reduce the cost of decommissioning in the North Sea. As decommissioning cost estimates increase every year as more experience is gathered, the UK government has tasked the offshore industry to reduce the cost of decommissioning by 30 percent Answering this challenge, the Oil and Gas UK work group—which is chaired by WorleyParsons' Global Decommissioning Manager, Alan Stokes—is developing ideas to reduce costs. WorleyParsons' global decommissioning team in Aberdeen has already provided cost-saving solutions to our customers' new build and decommissioning projects by implementing changes to the initial design and by innovative engineering during the removal work.

Looking AheadAlthough not devoid of challenges, the future of North Sea operations for WorleyParsons is bright and we will continue to pursue opportunities to bring our offshore EPCM, fabrication and heavy oil experience to projects in this region. The combination of WorleyParsons' global engineering experience, INTECSEA's offshore and subsea prowess, and Rosenberg WorleyParsons' local fabrication and EPC capabilities positions WorleyParsons Group for success in the North Sea.

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20 HQ Magazine Conference Report

Conference reportOur participation and recognition at this year's SOGAT, APPEA and OTC Asia conferences

WorleyParsons recognized for excellence at the 2014 Sour Oil and Gas Advanced Technologies (SOGAT) annual conference

The conference, held in Abu Dhabi from 23-27 March, focuses on the latest aspects of sour oil and gas processing that are suitable for use in fields containing high H2S and CO2, which prevail in this region.

WorleyParsons conducted a workshop the day before the official commencement of the conference entitled, "Sulphur Plant Operations & Lessons Learned" led by primary facilitator Frank Bela with support from Bill DeWees, Robin Street and Steve Pollitt. Cameo presentations from WorleyParsons’ primary sulphur technology partners were also included in the day-long session; these included ExxonMobil for FLEXSORB®, Linde for Oxygen Enrichment and ITS Reaktortechnik for SmartSulf®.

In the first session of the first day, Angela Slavens, vice president and global director for Sulphur Technology, presented a paper describing WorleyParsons’ involvement in the design and start-up of the world class sulphur facilities at GASCO’s Habshan 5 complex, which successfully started up at the end of 2013. The paper, which was co-authored by Attilla Racz and Robin Street (WorleyParsons) and Saleh Al Maskari (GASCO), was honored with the “Best Paper Award” during the closing ceremony of the conference. Additionally, Angela was recognized by the conference organizers for her support of the event since 2004, when it first began, by the presentation of a plaque.

Throughout the conference, WorleyParsons maintained an exhibit presenting the entire range of our sulphur technologies and sulphur handling capabilities. “SOGAT is a very important event for WorleyParsons,” Angela commented, “we are pleased with WorleyParsons’ level of visibility at this year’s event and believe that this helps to further demonstrate our commitment to helping customers solve technically challenging issues in the sour oil and gas sector, particularly in the UAE and throughout the Gulf Cooperation Council.”

The Australian Petroleum Production & Expiration Association (APPEA) Conference and Exhibition: a standout event for WorleyParsons and INTECSEA

Western Australia's Premier, the Honorable Colin Barnett, set the market context for this year's APPEA conference during the opening address. He shared his insights on the shift in energy challenges and the impacts the rise in capital project production costs have on the Australian economic and social state.

Director of EccNomicsTM and Sustainability, Mayuran Sivaplan; Sector Manager for the Water, Infrastructure and Envorpnment Group, Steven Page; and Prinicipal Hydrogeologist, Dan Cravens represented WorleyParsons as expert speakers, presenting on our hydrocarbons capabilities over the course of the four-day event. Speaker topics ranged from upstream interfaces in the water sector; to sustainable development of unconventional resources and associated non-technical development risks; and water management of shale gas developments. INTECSEA's Vice President of Floating Systems, Holger Kelle, also presented to the conference attendees on integrated LNG offloading availability assessments for FLNG assets.

In addition to serving as the official Meeting Zone Sponsor for 2014, WorleyParsons also hosted a customer cocktail event that attracted more than 50 operator representatives including key decision-makers from Chevron, Chiyoda Oceania, Woodside Energy, ConocoPhillips, New Standard Energy, Mitsubishi, Hunt Oil Company, APACHE and INPEX. Hydrocarbons Director Scott Hughey shared his view on the event saying, "I think it hit home with our customers that the diversity of our specialist capabilities in the LNG space is of real value, both globally and here in our local market".

To wrap up this successful event, INTECSEA took home the Best Peer Reviewed Poster Award, which was presented to Holger Kelle by APPEA CEO David Byers at the closing ceremony. The poster, titled "Project-Integrated LNG Offloading Availability Assessment for FLNG,"was co-authored by INTECSEA's Floating Systems Group in Melbourne and was among 45 others published at the exhibition. The poster explains a combined heuristic, analytical and probabilistic process to evaluate LNG

HQ Magazine Conference Report 21

offshore offloading availability in combination with facility uptime and commercial drivers such as LNG sales and supplies contracts. Holger commented on the process and award, stating that "This process has been developed within INTECSEA over the last six years and has been applied to over 23 LNG export terminals (FLNGs) and LNG import terminals (FSRUs) at varying geographical locations." He added that "This award confirms that our approach to assessing this complex process is state-of-the-art."

The APPEA Conference is the largest annual upstream oil and gas event in the southern hemisphere. For more details visit www.appeaconference.com.au.

WorleyParsons delivers a successful showing at the inaugural Offshore Technology Conference Asia (OTC Asia)

Held 25 - 28 March in Kuala Lumpur, this event attracted an astounding 22,000 attendees from across the globe. For WorleyParsons, the week began with workshops focused on Quality Decision Making (QDM) and Mono-Ethylene Glycol (MEG). Chuck White, global director of EFDS; Stewart Seatter, manager of Select for Kuala Lumpur; Johan Samad, manager of Field Development for INTECSEA in Kuala Lumpur; and Tim Giles, manager of Select MEG Systems chaired the events, which served as great opportunities to share knowledge and highlight some of our niche capabilities with valued customers and employees.

The conference officially kicked off with a mixture of excitement and sadness, as the tragedy of missing Malaysia Airlines flight 370 remained fresh on everyone’s mind. The opening ceremony, with special guest Honorable Dato' Sri Mohd Najib Tun Haji Abdul Razak, prime minister of Malaysia, included a moment of respectful silence for the families of those aboard the flight.

As the conference got into full swing, there was a refreshingly intense focus on the technical sessions, with notable topics including advances in FLNG, growing interest and opportunities in Myanmar and unlocking the full potential of deep-water technology. As a group, WorleyParsons achieved great success in our technical program, with an impressive eight papers presented by our experts on a wide range of topics related to the offshore energy industry. This included Dr. Abe Nezamian, global director of Improve - Asset Integrity Management, who authored and presented three papers and one in-booth presentation, as well as Geeta Thakorlal, global director of Select, who hosted the Australia session at the conference.

Conference attendees also had the opportunity to see several in-booth presentations outlining our comprehensive offering. Throughout the week, our striking exhibition booth—manned by employees from WorleyParsons, INTECSEA and Ranhill WorleyParsons—offered a great place to gather and discuss current challenges and future direction of the industry. The booth also attracted recent graduates and talented professionals looking for career opportunities with WorleyParsons.

Overall, WorleyParsons Group had a very strong presence at OTC Asia, and we look forward to continuing that momentum into OTC Houston this May, as well as the next OTC Asia event, which will be held in March 2016 in Kuala Lumpur!

WorleyParsons' Chuck White, Steve Lee, Geeta Thakorlal and Jim Yu, pose with OTC Board Members Ed Stokes (far left) and Helge Hove Haldorsen (second to right)

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22 HQ Magazine Oil Spill Tracking Buoys

Oil Spill Tracking BuoysMitigating environmental risks through the development of innovative technologies

The Deepwater Horizon oil spill presented an unprecedented threat to Gulf of Mexico marine resources. Although the amount of oil gushing to the surface diminished after the well was capped, scientists did not stop gathering data, or looking for ways to avoid future disasters.

For example, both during and after the oil spill, researchers captured information about the way oil breaks down, dissipates and bioaccumulates. Their goal is to improve the technology used to mitigate the impact of such disasters. One device that is addressing this challenge is the WorleyParsons Oil Spill Tracking Buoy (OSTB).

Oil drifts along the surface of ocean water at 97 percent of current speed, but only a fraction of the wind speed. Therefore, it is essential to track these currents, since they account for 95 to 98 percent of the ultimate oil spill trajectory. WorleyParsons designed, developed and deployed OSTB to provide a scientific instrument for capturing only the surface currents. For fast response, it can be deployed from a helicopter for oil spill response monitoring using satellite-tracking modems.

The OSTB is designed to accurately track a surface oil spill, with movement of the buoy limited to the metocean conditions found at the immediate air/sea interface and in the upper half meter of the water column. The buoy has close to zero windage, yet still sends and receives satellite GPS fixing data. Each buoy has its own identification number and can be tracked 24 hours a day, seven days a week. This system allows the real-time tracking of the exact position of oil, icebergs, and search and rescue teams anywhere on the planet.

The associated software platform can track an infinite number of OSTBs at any time and enables multi-user control and monitoring from several different locations at the same time, with the ability to limit access and control of the data between individual sites, thus permitting the end-user the ability to map the extent of the spill and ultimately calculate spill dispersion rates. A waterproof switch integrated into the lid turns the tracking function on and off, and each OSTB is fitted with a unique, impact-resistant satellite-tracking device. Lithium cells provide extended operational endurance, 30-minute reporting frequency for up to 40 days’ deployment life and 365 days when reporting every 24 hours.

Previous project experience, examination of existing oil spill response systems and model validation exercises have shown that multiple OSTBs need to be deployed across a variety of locations during an oil spill incident, namely spill fronts and spill central points. This is vitally important for any Oil Spill Response Team for planning its incident response effectively, and to enable the emergency numerical modelling systems that predict the fate of a spill.

With a proven heavy-duty design for 50 meter free-fall deployments and a global satellite tracking system (GlobalStar), the WorleyParsons OSTB is an instrument that can be safely deployed from oilrigs, rig support vessels and helicopters. Offshore deployments have seen OSTBs track in sea states greater than six meters for prolonged periods. Weighing only seven kilograms, an OSTB can be deployed and recovered by one person. For further information, email ostb@worleyparsons.com.

HQ Magazine Office Intel 23

Office IntelHighlights from our locations around the world

Royal Society for the Prevention of Accidents (RoSPA) recognizes WorleyParsons with fifth consecutive GOLD Award

This fifth consecutive award for our approach to occupational safety and health by UK safety charity RoSPA illustrates our commitment to industry leadership in HSE performance.

RoSPA’s mission to save lives and reduce injuries covers all ages and stages of life. In support of this mission, the RoSPA Awards, which date back 58 years, recognize commitment to continuous improvement in accident and ill health prevention at work. Through the awards scheme—which is open to businesses and organizations of all types and sizes from across the UK and overseas—judges consider entrants’ overarching occupational health and safety management systems, including practices such as leadership and workforce involvement.

David Rawlins, RoSPA’s awards manager, said, “The RoSPA Awards encourage the raising of occupational health and safety standards across the board. Organizations that gain recognition for their health and safety management systems, such as WorleyParsons, contribute to a collective raising of the bar for other organizations to aspire to, and we offer them our congratulations.”

On receipt of the award, Chris Ashton, WorleyParsons' Europe and the Middle East & North Africa (MENA)managing director, commented, “This award is much appreciated, and provides evidence that we are making progress on our journey towards zero harm. I am proud of this achievement and of the people in our organization who made this possible, and am also pleased that future submissions to RoSPA will be able to draw from the great work being conducted throughout the entire Europe and MENA region. I look forward to all of us sharing in future successes.” WorleyParsons’ Gold Medal will be presented during a ceremony at ExCeL London on 17 June 2014.

WorleyParsons Cyclists support the fight against Multiple Sclerosis in the 2014 BP MS150!

Each year, the BP MS150 raises money to help support the Multiple Sclerosis (MS) Foundation in their efforts to combat this chronic, unpredictable disease of the central nervous system (the brain, optic nerves and spinal cord). MS is considered to be an autoimmune disorder, which means the immune system incorrectly attacks the sufferer’s healthy tissue.

This year’s BP MS150 was held from 12 - 13 April and brought a total of 13,000 riders, 750 vehicles and countless volunteers together in support of the fight against MS. The Houston to Austin ride is a total of 180 miles through Texas hill country over the course of two days.

This year, the WorleyParsons cycling team brought 41 employees, spouses and guests who demonstrated their enthusiasm for this cause not only by participating in the ride, but by also raising $28,066.57 to date! Supporting charitable events such as the BP MS150 is in congruence with WorleyParsons' commitment to the communities in which we work.

Members of WorleyParsons' BP MS150 Cycling Team

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To contact HQ Magazine, please email: hqmagazine@worleyparsons.com

For general inquiries, please email: hydrocarbons@worleyparsons.com

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