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 Building Relationships Strengthening our partnership with COOEC

p.6 Thought Leaders Angela Slavens appointed to the ASRL Board

p.7 Excellence in Engineering WorleyParsons named "Engineering Company of the Year"

p.8 Global Awards

p.10 Singapore's First LNG Terminal A look at this pioneering LNG project

p.14 Supporting Decision Quality WorleyParsons and Decision Frameworks have partnered to support exploration and production investments

p.16 Improve LNG Unified teams deliver optimal outcomes

p.18 Regional Report Read about our work in the Asian region

p.20 Conference Spotlight Check out our participation at major conferences this quarter

p.22 Office Intel See what’s happening in our locations around the world

Issue 9Q3, FY2014

The vast reserves in the Arctic region represent tremendous opportunity for growth. As technology advances and policy evolves to encourage development in this area, WorleyParsons' Arctic teams bring their pioneering skills and experience to projects in this remote environment. Refer to page 11 to learn how we're applying our specialist technology expertise, experience and solutions to Arctic projects around the world.

In this issue:

Content

Arctic Development: Growth through comprehensive services and innovative solutions

p.11

On the cover:Okume/ Ebano Tension Leg Spar,Offshore Equatorial Guinea

© WorleyParsons 2014

HQ Magazine Message from Brian Evans 3

In this first issue of the calendar year, we feature Arctic development. WorleyParsons has a long and successful history of supporting our customers in this sector and we've detailed our experience and our pioneering capability on page 11. We are also addressing the challenges and opportunities in LNG. As the LNG industry transforms, the unification of expectations, performance metrics and teams is proving essential to success. Read about our Improve LNG philosophy on page 16.

I am happy to showcase the leadership shown by several of those in our WorleyParsons family, including our Global Subsector Lead (GSL) for Sulphur Technology, Angela Slavens (page 6); our GSL for Arctic & Cold Climate, Dr. Mike Paulin (page 20); our GSL for LNG and FLNG, Paul Sullivan (page 21); and our Chairman and founding CEO, John Grill (page 21).

We are excited to be participating in several major conferences in the Arctic, LNG and offshore sectors. These events are wonderful opportunities for us to showcase what we've learned in the past year and share it with our peers, as well as learn from others in the industry. Take a look at pages 20 and 21 to learn more about our participation.

Our regional report this issue showcases the Asian region—an area that has been experiencing growing demand for energy. Read about our business in the region on page 18. Finally, also featured is our growing relationship with COOEC (page 5) and Decision Frameworks (page 14).

Wishing you a safe and prosperous 2014,

Brian Evans

Managing Director, Hydrocarbons

Message from Brian Evans

... events are wonderful opportunities for us to showcase what we've learned in the past year and share it with our peers, as well as learn from others in the industry....

4 HQ Magazine Focus on Zero Harm

WorleyParsons' Restoration group in the UK, namely the Liability Management & Remediation Consulting Practice, has been recognized at the Brownfield Briefing Awards in London.

In late 2013, WorleyParsons won the ‘Best Scoping or Operation of a Site Investigation’ award for their work with National Grid at the prestigious Brownfield Briefing Awards in London. The awards recognize best practice and innovation in brownfield and remediation. WorleyParsons was recognized for their environmental assessment and risk-based approach to prioritizing a portfolio of active substation sites across the UK on behalf of National Grid.

Accidental releases of low viscosity transformer oil and related compounds from transformers and other plants can represent a significant risk to both surface and groundwater quality in the vicinity of substation sites. They also pose a potential risk to the health of site-based workers. WorleyParsons' approach to the portfolio assessment work allowed National Grid to focus interventions and further investment on sites where it is most needed, based on actual quantified environmental risk.

WorleyParsons Consulting is a globally connected network of specialist consulting groups, drawing on world-class expertise across many industries. For more information on WorleyParsons Consulting, please visit: http://www.worleyparsons.com/consultingpractices/Pages/.

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

1. Leadership and governance

2. Risk management

3. Caring for our people and the environment

4. Selection and competency

5. Working with customers

6. Engineering

7. Working with vendors and contractors

8. Field execution

9. Management of change

10. Crisis and emergency management

11. Incident and behaviour analysis

12. Assessment and improvement

While other OneWayTM Framework Elements also apply, the primary element demonstrated above is 'Assessment and Improvement': the assessment of our performance and subsequent action taken to continuously improve.

Focus on Zero HarmFocusing on safety throughout WorleyParsons' global operations

HQ Magazine Building Relationships 5

Building RelationshipsWorleyParsons and China Offshore Oil Engineering Co., Ltd. (COOEC) have signed a Memorandum of Understanding

We are pleased to announce that WorleyParsons and COOEC have entered into a Memorandum of Understanding on 11 December 2013. The official signing ceremony was held in COOEC’s Tianjin office, and was witnessed by officials from both companies.

COOEC is the largest offshore engineering and construction company in China for integrated services including engineering design, onshore fabrication and offshore installation and maintenance. It has knowledge, expertise and particular experience in heavy industry EPCI, both onshore and offshore, predominately in the oil and gas industries.

To support its rapid growth into worldwide oil and gas markets, COOEC recognizes that WorleyParsons—as a leading global provider of professional services for consulting

engineering, project management, engineering, procurement services and construction management—is well placed with capability and capacity to offer positive synergies in pursuing and delivering projects.

This view is fully aligned with WorleyParsons’ long-term development strategy, i.e. to collaborate globally with national oil companies, including their subsidiaries, to expand WorleyParsons' market share. The combination of COOEC’s strong capabilities in EPCI, and WorleyParsons Group's outstanding expertise in engineering and project services, both onshore and offshore, has now created a significant team which will jointly pursue and execute global projects. The current opportunities and future prospects are targeted in the deepwater, LNG, oil sands, and unconventional oil and gas subsectors.

PARTICIPANTS IN THE SIGNING CEREMONY WERE WITNESSED BY BRIAN EVANS, COLIN ROBINSON, CHEN LI, AND JOYCE MEI FROM WORLEYPARSONS; AND MR. YANG YUN (EVP OF COOEC), GU HONG (GM OF COOEC INTERNATIONAL COMPANY), ZHANG QING (DEPUTY GM OF COOEC ENGINEERING COMPANY), HAO JUN (MARKETING DIRECTOR OF MARKETING AND SALES DEPT.), ZHAO HUAIGANG (GM OF BUSINESS CONTRACT DEPT.), ZHOU SHIYONG AND YANG YANG OF COOEC.

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6 HQ Magazine Thought Leaders

ASRL is a non-profit sulphur research organization that serves the growing global sulphur industry. ASRL conducts research in the field of chemistry as it concerns the science and technology of sulphur and its compounds with particular emphasis on the production, processing and utilization of sour natural gas, sour crude oils, oil sands and their related products. Much of the current focus is on energetically efficient and environmentally sound recovery processes as well as issues around the handling and transportation of elemental sulphur.

ASRL is supported and governed by a broad cross-section of the petroleum-based energy industry and specific sulphur production and supply businesses from Canada, the United States, much of Europe as well as the Middle and Far East. It is affiliated with the University of Calgary's chemistry department and continues to serve as a contact point between industry and academia, striving to provide an expert level of scientific and technological support to those who require or are interested in understanding the chemistry of sulphur and its compounds.

A great deal of the organization’s research is oriented towards increasing energy efficiency in industrial operations which assists companies, like WorleyParsons’ customers, in meeting their environmental objectives. Robin Street, Chief Engineer for Sulphur Technology in WorleyParsons’ London office, served on the ASRL board from 2007 to 2012; thus, Angie’s

Thought LeadersWorleyParsons' Angela (Angie) Slavens, global subsector lead for Sulphur Technology, has been appointed to the board of directors for Alberta Sulphur Research Ltd. (ASRL)

appointment perpetuates WorleyParsons’ leadership in this important industry organization.

Angie is one of nine board members and will be responsible for overseeing the commercial, financial and planning activities, ensuring operations support the vision of ASRL, encouraging the participation of members and supporting long-term growth of the organization through membership and research activities.

“This is exciting news for Angie and WorleyParsons. ASRL is the leading sulphur research organization in the world and this appointment both affirms Angie’s status as one of the leading figures in this industry and recognizes the depth, history and future that WorleyParsons has in the sulphur business,” says Chris Mole, Global Hydrocarbons Subsector Director.

To learn more about ASRL, visit their website http://www.albertasulphurresearch.ca/.

HQ Magazine Excellence in Engineering 7

Excellence in EngineeringWorleyParsons named Engineering Company of the Year at 2013 Asia Oil and Gas Awards

WorleyParsons was recently named Engineering Company of the Year at the 2013 Asia Oil and Gas Awards.

The award recognizes engineering excellence and achievements within the oil and gas industry, and is judged by a prestigious panel of CEOs from several of Asia’s most renowned oil and gas companies. WorleyParsons was specifically recognized for “being a very well respected engineering company with a wide range of E&P engineering design capabilities,” in addition to completing projects that display innovation to meet complex customer requirements.

Thailand Location Manager, Anthony Sudarsan and Business Development Manager, Kitisark Intaravisit accepted the award on behalf of WorleyParsons at the awards ceremony, held at the Amari Watergate Hotel in Bangkok.

Commenting on the award, Graham Hill, Hydrocarbons senior vice president - Asia and Middle East, said “We have a long history of successfully delivering a large array of projects

throughout Asia, so it is a great honor to be recognized for our contributions to our customers' projects. This award is a true testament to the consistent quality of engineering, design and hard work delivered by numerous WorleyParsons teams across the region.”

View more information on the 2013 Asia Oil and Gas Awards, here: http://www.asiaoilandgassummit.com/awards.

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Kuwait Oil Company (KOC) has awarded WorleyParsons a five-year USD 400 million contract for the supply of program management services. The contract ssupports KOC's objectives of reaching optimum capacity in its oilfields and enhancing its facilities by the most efficient and economical means available.

The contract provides project management, coordination, planning, design, engineering, construction management, contracting, procurement, project controls and other services for construction of new facilities, upgrading of existing facilities and transfer of technology.

KOC Deputy Chief Executive Officer - Major Projects & Technical Services, Esam Al- Houti, said, "This contract is important to support KOC's comprehensive ongoing program of major projects and is considered critical to the day-to-day business and future development of the company's facilities. WorleyParsons is well qualified to perform the required services and has previously demonstrated their added value over the last 20 years during which they executed similar services for KOC.”

Gazprom subsidiary, VNIPIgazdobycha, has appointed WorleyParsons as their engineering contractor for the development of a major Russian LNG production and export facility, Vladivostok LNG. The development forms part of the Russian government’s strategy to substantially expand the eastern portion of the country’s unified gas supply system.

WorleyParsons’ scope of work on the project includes the front-end engineering and design (FEED) deliverables for two 5 MTPA LNG trains with supporting utilities and infrastructure, including loading terminal topsides. WorleyParsons’ task is to deliver the FEED documentation and provide ongoing technical support during the State Expertiza review phase. FEED deliverables are expected to be completed in the last half of calendar year 2014.

VNIPIgazdobycha conducted an extensive and competitive selection process of leading western and Russian engineering and project delivery companies. WorleyParsons was selected due to our modularization expertise, availability of leading LNG specialists and extensive 20-year experience in Russia.

“The Vladivostock LNG facility will provide a major boost to Gazprom’s supply to key Asia-Pacific markets and customers. Naturally, we are honored to have been selected for such a critical project,” commented Andrew Wood, chief executive officer, WorleyParsons. “We look forward to working with VNIPIgazdobycha and Gazprom and helping them achieve their important goals.”

Kuwait Oil Company Program Management Contract

Gazprom selects WorleyParsons for Vladivostok LNG

Global AwardsMajor Hydrocarbons contracts awarded this quarter

8 HQ Magazine Global Awards

This was a successful negotiation with OilSearch Limited (OSL) (ASX:OSH) off the back of our long-term relationship as OSL’s incumbent contractor for the supply of engineering, design, procurement and project management services within an integrated team that includes OSL personnel.

These services are in support of OSL’s ongoing programs of annual Improve and Deliver work associated with its Papua New Guinea operations.

OilSearch Limited Executive General Manager - Project Development, Glenn Darnley-Stuart, said, “Leveraging the combined skills and experience of both WorleyParsons and OSL staff—working in a cooperative integrated team environment—underpins our efforts to continuously improve the delivery of a portfolio of production support projects in Papua New Guinea.”

OilSearch Limited’s Master Services Agreement Extension

Hydrocarbons Regional Director of Australia-New Zealand, Scott Hughey, commented on the win stating, “This award demonstrates the importance of developing long-term partnerships with customers through consistently delivering satisfying outcomes.

This is a great opportunity for us to continue to contribute to OSL’s operations in Papua New Guinea and demonstrates our ability to deliver on our promises in one of the world’s most challenging environments.”

This win is a testament to the hard work and strong relationships built by our mobilized OSL team and their ability to collaborate with the customer’s team to deliver services to incentivized cost and schedule measures.

HQ Magazine Global Awards 9

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10 HQ Magazine Singapore's first LNG Terminal

Singapore's first LNG Terminal

To increase the security of Singapore’s domestic gas supply, PowerGas is constructing the nation’s first liquefied natural gas (LNG) regasification terminal on Jurong Island.

The terminal will process three million tonnes of LNG per annum, reducing Singapore’s dependency on existing natural gas pipelines and providing the capacity required to underpin the current suite of large scale process plant developments underway in Singapore. It will provide the primary building block for future expansion of the nation’s process and energy infrastructure.

WorleyParsons’ role is to provide PowerGas with a basis of design and front‑end engineering design. Key activities within the scope also include the development of the EPC contractor tender documents with their subsequent evaluation and recommendations for contractor selection.

PowerGas’ relationship with WorleyParsons spans over 15 years, during which we have provided a range of specialist engineering services. On this project, our expertise in hydrocarbons, power and infrastructure, coupled with a 20‑year heritage in Singapore, and a global process capability will enable us to assist PowerGas to fast track the local regulatory issues and ensure that the finished facilities are amongt the best in class.

Arctic DevelopmentDelivering comprehensive services and innovative solutions

Containing an estimated 22 percent of global undiscovered oil and gas reserves, the Arctic is a vital future resource and a technically challenging opportunity.

The above estimation based on the World Petroleum Resource Project undertaken by the US Geological Survey (USGS) in 2012 also reported that the region holds technically recoverable resources estimated at 90 billion barrels (bbls) of oil, 1,669 trillion cubic feet (tcf) of natural gas and 44 billion bbls of natural gas liquids (NGLs). The North American provinces of the Arctic Ocean region hold the majority of undiscovered oil, followed by the Former Soviet Union (FSU) provinces while the majority of undiscovered natural gas in the region is located in the Arctic provinces of FSU, followed by the North American and European provinces.

WorleyParsons first commenced work in the Arctic in 1970 and is a world leader in delivering safe, sustainable outcomes in the region. Leadership in innovative technical design and program execution processes has characterized the efforts of all the WorleyParsons Arctic teams over the past 44 years. This has been enhanced in the past decade through the acquisition of Parsons E&C, INTEC, Sea Engineering, Westmar and Colt Engineering.

Our long history of successful growth through strategic acquisition and positive partnerships includes building collaborative relationships with people in the local areas in which we work around the world. As local communities are directly involved with the development of a region, alignment with these communities is essential. In accordance with our localization model, WorleyParsons’ acquisition of Colt Engineering—Canada’s leading engineering business—in 2008 brought with it their commitment to developing strong partnerships with local Alaskan businesses that has been maintained following the acquisition.

NANA WorleyParsons—which is jointly owned through a 50/50 partnership between Northwest Arctic Native Association (NANA) Development Corporation (NDC) and WorleyParsons— offers Arctic engineering, project controls and management, and fire and gas detection/ suppression services and is focused on enhancing the quality of life for its people by maximizing economic growth, protecting and improving its lands, and encouraging healthy communities. This is achieved through decisions, actions and behaviors inspired by their Inuit Values and that support Alaskan native hire and development.

Meeting the Challenge Through Innovation

The exploration of the Arctic for petroleum is more technically and physically challenging than for any other environment. In the harsh and remote conditions of the Arctic, operations rely on the

HQ Magazine Arctic Development 11

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12 HQ Magazine Arctic Development

advancement of technology for float-over platform design, unmanned operations, accurate weather pattern predictions, ice and iceberg management, fuel, transport and communications, among others. WorleyParsons holds the number one position for design in float-over topsides and our Arctic team has pioneered many modularization strategies, including sealift mega modules to truckable modular design and the accompanying logistics innovations. The INTECSEA team has engineered all three pipeline systems in the Beaufort Sea using innovative design approaches that work with the cold Arctic winter conditions to reduce pipeline costs and minimize adverse effects on the fragile marine environment.

INTECSEA supports the energy industry as planned conventional and subsea field developments move deeper into the Arctic Ocean, and the company’s floating systems expertise has also been active in developing floating solutions for Arctic and other ice covered waters. This technical expertise means we are adept at analyzing the potential effects of Arctic-specific environmental loadings (ice scour, strudel current scour, permafrost) and effectively utilizing limit state design for extreme loading conditions. In fact, INTECSEA has executed the only offshore oil pipelines in the US Arctic and has completed recent projects with flowline bundles to manage the considerable thermal challenges.

Our extensive track-record of delivering onshore and offshore Arctic mega-projects in all the key Arctic fields includes work on Sakhalin Island and in Barents Sea (Russia), Kazakhstan, Alaska and Canada. The industry-leading expertise has been

further developed through delivering a number of key projects including FEED and PMC for Agip KCO’s Kashagan in the Caspian Sea; FEED, detail engineering and procurement services for ExxonMobil’s Sakhalin-1 Arkutun-Dagi; FEED and detail services for ExxonMobil’s Hebron platform topsides; FEED for Gazprom’s Shtokman Phase 2 and 3 Development; phase one of the EPC services for ExxonMobil’s Point Thomson Initial Production System; EPC services for Husky Oil’s Sunrise project, which engages our construction group, WorleyParsonsCord; and pre-FEED, FEED, detail design and construction support for ENI Petroleum’s Nikaitchuq Field and Pioneer Natural Resources Alaska, Inc.’s Oooguruk Offshore Field Development.

Evolving Capabilities

Advances have been made that increase exploration activities in the region. Innovative onshore and offshore drilling technologies have been developed; including floating rigs for drilling exploration wells offshore that allow rigs to be moved to other locations once well drilling is complete. Although ice masses of significant size are a concern for moving rigs, specially developed vessels are used to manage the ice and protect the rigs. Additionally, various oil spill prevention and response mechanisms are used to prevent oil spills and minimize the impact of any spills should they occur.

In the Russian Arctic, platforms are being built that will be capable of withstanding high waves, typhoons and earthquakes. These oil and gas platforms were developed as part of ExxonMobil's Sakhalin-II project, which is considered to be one of the largest export-oriented oil and gas projects

HQ Magazine Arctic Development 13

and has been built with thick, round concrete legs so that they can withstand earthquakes measuring up to eight on the Richter scale. WorleyParsons has been engaged to complete the definition engineering design and has proceeded with the detailed engineering for the Sahkalin-II onshore processing facility, in addition to other construction management and procurement responsibilities.

Regulatory Environments

Offshore Arctic development is also being encouraged through changes in public policy. Alaska Governor Sean Parnell undid the system put in place by former governor Sarah Palin in 2007 with his signing of the More Alaska Production Act (SB 21) in May 2013. This act is expected to renew exploration in the United States’ second-largest oil reserve and could increase Alaska’s output by 90,000 barrels a day within four years. Palin’s levy linked the amount of taxes oil producers in the state paid to the price of crude, resulting in duties ranging from 25 percent to 75 percent as oil prices rose. Parnell’s law puts into place a flat tax of 35 percent, which enables producers to more accurately predict the amount they will pay as taxes are based on production numbers, not crude prices. This break is expected to drive investment in Alaska, with major producers already showing interest in the state’s newly-revived potential and the possibility of exporting to Asian markets

The Russian government, which is looking to expedite exploration activities in this region to offset the effect of depleting reserves in other major oil and gas fields, is working to strengthen

exploration operations in the Arctic by introducing new tax incentives, fully backed by President Putin. There are also plans to abolish export duties for offshore exploration operations. While it is mandatory for foreign companies to connect with state oil and gas companies, such as Rosneft or Gazprom, to carry out exploration activities in Russia, these national oil companies (NOCs) are working with international oil companies (IOCs) to explore and develop Arctic oil and gas resources. The strategic agreements that result from these partnerships will allow both parties to share technologies and expert knowledge of Arctic development—a crucial step in developing an aligned focus and clearly defined expectations towards safety and environmental protection of these sensitive regions. WorleyParsons has experience working with both NOCs and IOCs on Arctic developments, including on the aforementioned Sahkalin-II project for which Gazprom and Shell have formed a joint venture.

WorleyParsons is well-positioned to support success in the Arctic environment while still maintaining the ecological integrity of the region—a homeland for many indigenous peoples and organisms. This requires a comprehensive understanding of the Arctic market and its unique engineering and design, construction, operation and safety challenges. The future of Arctic development—while promising—will not be devoid of challenges that the entire industry will face and that our Arctic team is looking forward to overcoming.

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14 HQ Magazine The Shale Oil & Gas Revolution

Supporting Decision QualityDelivering comprehensive services and innovative solutions

Quality decision‑making supports development of the full field

HQ Magazine Supporting Decision Quality 15

WorleyParsons and Decision Frameworks are pleased to announce they have entered into a global alliance, offering joint advisory and training services extending Decision Quality support offerings to customers worldwide. The alliance combines the strengths of WorleyParsons Consulting and Select groups’ experience in engineering, facilitation and project delivery services with Decision Frameworks’ extensive advisory and training experience in Decision Quality methods and tools. Beginning with a focus on the upstream oil and gas industry, the alliance will grow over time to include the extended offering into several of WorleyParsons’ global businesses.

Today, customers are faced with a growing list of critical capital projects with significant risks and uncertainties. Having a structured and transparent methodology that provides decision-makers and project teams with a clear understanding of the choices and trade-offs they face is not only a competitive advantage but a fundamental ingredient in a company’s success. The combined strength of the proven Decision Quality approaches of Decision Frameworks and WorleyParsons further enables customers to achieve maximum value from their investments

by bringing further structure and clarity of action to their decision-making processes. Customers will also notice an expanded list of Decision Quality trainings in 2014 being led by Decision Frameworks with support from WorleyParsons.

Chuck White of WorleyParsons recently commented on the alliance, saying that “our customers look to us to deliver innovative field development methods and solutions that bring them competitive advantages and allow them to achieve consistently high value from their investments. This alliance is a key part of our strategy in growing both organically and through alliances with leaders in respective fields.“

Training opportunities are available for our customers beginning in February. Get more information on both the WorleyParsons and Decision Frameworks websites. You can also read more about these opportunities and our Enhanced Field Development Services (EFDS) offering in the next issue of HQ Magazine.

About Decision Frameworks

Decision Frameworks is a firm that is highly respected globally for implementing and inspiring the use of Decision Quality within the energy industry. Through training, consulting, coaching and software, Decision Frameworks has built a reputation for enabling Decision Quality within numerous top tier customers since its inception in 1999.

For more information about Decision Frameworks, visit: www.decisionframeworks.com.

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16 HQ Magazine Improve LNG

Improve LNGAchieving the best business outcomes on an LNG facility through total integration—Steven Venables, Global Director-Hydrocarbons Improve

What are the keys to success for achieving the best business outcomes on a liquified natural gas (LNG) operating facility?

LNG is celebrating its 50-year anniversary since the first facility was commissioned in Algeria in 1964. After a slow start, it has been a rapidly-progressing industry with a growth rate of over 10 percent in the last 20 years, with 93 trains in 17 countries on-stream representing a global capacity of 285 MTPA. As of mid-2013, another 30 trains were under construction with a total capacity of 110.1 MTPA; and more world-class liquefaction plants in the planning stages, notably in Canada, the USA, East Africa and Russia.

With such a growth curve, the focus has been more on new LNG production capacity rather than on the operations, maintenance and asset integrity issues associated with the existing production base as many facilities are more than 20 years old. Global LNG production actually declined in 2012 due largely to domestic and political issues in the Middle East and North Africa, but also because of plant availability issues in Indonesia and Malaysia.

The Case for Integration

Over the last four years, global LNG capacity utilization averaged 84 percent in a supply-constrained environment compared to an expected average individual plant availability of between 92 and 95 percent. Some of this can be attributed to problems such as feedstock maturation (Indonesia) and growing

domestic feedgas demand (Egypt, Algeria), but much can also be attributed to LNG plants operating at lower than expected availability.

Operators have implemented many initiatives in an effort to maximize the return on investment from their LNG assets. The number that have actually succeeded and how many have failed is a moot point as many are still facing plant availability challenges.

WorleyParsons has a long history of project delivery and operations support to LNG facilities, including major brownfield operations contracts covering 40 percent of the world’s LNG liquefaction plants through our Improve services. A key learning point for us from these initiatives is that individual tools and techniques applied in isolation cannot effectively solve asset problems. Experience and hindsight has shown that an integrated approach is necessary to drive the best business outcomes.

We have learned from experience that an integrated approach is more effective than the piecemeal approach of attempting to coordinate, collate and correlate the output from multiple parties with differing drivers. It yields far better results in terms of safety, compliance and productivity, cost-efficiency and bottom-line performance, and also minimizes management conflicts, duplication of effort and the creation of silo knowledge centers.

Stakeholder Alignment

An integrated approach is fine in theory but in practice, the reality is that even within a single owner/ operator organization, there

HQ Magazine Improve LNG 17

can be significant hurdles to overcome due to the various stakeholders involved, such as business management, HSE, operations, maintenance, external contractors and third-party service providers.

All these stakeholders tend to have their own tools and techniques and definitely have their own performance metrics, so contradictory key performance indicators (KPIs) can present a significant challenge. Typically, the operations department sets a target to meet or exceed contractual delivery requirements, and therefore naturally does not want equipment taken out of service for maintenance. The maintenance group, on the other hand, will have reliability targets to meet that require shutdown for inspection and servicing of equipment—and this is just internal to an organization. Complexities increase with shipping and delivery committments and the involvement of multiple external contractors, specialists and consultants.

The Path Forward

Achieving an integrated approach requires a change in mind-set and a hard look at

organizational culture by all parties involved. Success here involves open communication, shared risk and rewards, minimization of duplicated effort and a true partnership between all stakeholders. Additionally, ensuring that aligned and specific objectives are set for the performance of all functions in the asset and that these are linked by consistent performance measures by KPIs to the business bottom line is essential.

WorleyParsons has found that an integrated approach allows all parties to better understand the true business drivers and it is in integrated teams that all parties have contributed to add the most value.

LNG is a capital-intensive business where safe, stable and reliable production over many years is the key to commercial success. Optimal production is a result of ensuring plant availability and utilization in addition to the successful execution of maintenance and production type projects. Breaking down individual silos by forming an integrated team to develop a cohesive, unified support function definitely delivers the best business outcomes to an LNG operator.

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"...individual tools and techniques applied in isolation cannot effectively solve asset problems. "

Image courtesy of Woodside Energy Limited

18 HQ Magazine Regional Report

Regional ReportWorleyParsons' operations in Asia

The energy industry has played a remarkable role in the economic growth of the Asian region, which is currently experiencing a rapidly growing demand for energy that is forecast to more than double its 2008 numbers by 2035. Predictions indicate the continent will drive most of the world’s future energy needs and will realize a higher level of dependence on oil and gas imports to fuel their growth.

WorleyParsons has been established in Asia since 1989 with the opening of the Brunei office. Since this time, the company’s Asian operation has grown to approximately 6,500 staff across 16 offices. Primary hub locations exist in Kuala Lumpur, Singapore, Jakarta, Beijing, Shanghai and Bangkok, supported by our global centers in Perth, Melbourne, Brisbane, London, Calgary, and Houston. Our experience in Asia covers the full range of oil and gas production facilities, including both onshore and offshore to produce solutions appropriate for developments including:

• Fixed and floating offshore production facilities

• Subsea production facilities including deepwater fields

• Marginal field developments

• Offshore export facilities including pipelines and storage and loading systems

• Onshore reception, treatment, storage and loading facilities, pipelines

• Refineries and petrochemical plants

• Gas monetization technologies

• Oil and gas processing

In 2011, China was responsible for 71 percent of growth in world energy consumption, dwarfing second place India’s 13 percent. The country has already overtaken the US as the largest

generator of power, a testament to the progress of previously under-developed areas. The delivery of our specialist services to cross sector projects has supported significant developments crucial to the continuation of this growth, like Singapore LNG, which is detailed on page 10 of this issue. Strong domestic demand for these services, as well as our integrated power and infrastructure capabilities have been key drivers to our growth in the region.

We have provided solutions for major field developments that have contributed to successful outcomes of world class developments, including projects for majors including Singapore LNG Corporation, China National Offshore Oil Corporation (CNOOC), CNPC, Inpex, ConocoPhillips, ExxonMobil, Total, Shell, Petronas and Chevron. As with any region of the world, knowledge of regulatory, permitting and production issues, as well as working relationships with local contractors and national and international oil companies is essential to success. We understand the economic, political and social landscape of the region and utilize this knowledge to provide realistic solutions. This is underpinned by our working relationships with national oil companies such as COOEC—a relationship that has recently been strengthened as seen on page five of this issue.

Additionally, joint ventures and strategic acquisitions in the region have bolstered our capabilities. This regional strength ensures that our personnel are familiar with the challenges posed by new developments—including those in remote, hostile and logistically demanding environments. Local knowledge, combined with international experience guarantees that development options are reviewed at both a technological and practical level, and the opportunities, costs and risks are carefully evaluated. Local and regional industry

HQ Magazine Regional Report 19

New Zealand

Auckland New Plymouth

New Caledonia Noumea

Blenheim WellingtonHastings

Christchurch

GladstoneMackay

Townsville

Brisbane

SydneyMelbourne

Geelong

NewcastleSingleton

Darwin

Port Hedland

AdelaidePerthBunbury

Australia

Bintulu

Kota KinabaluMiri

IndonesiaBalikpapan

Indonesia Jakarta

Brunei Kuala Belait

Duri

Malaysia

Thailand SrirachaThailand

Ho Chi Minh CityVietnam

Hong KongShenzhen

Bangkok

Shenyang

Shanghai

Nanjing

Chengdu

BeijingTianjin

Malacca

KuantanKerteh

Kuala Lumpur

Singapore

HanoiVietnam

Mongolia Ulaanbaatar

China

MumbaiHyderabad

Chennai

India

Regas Satu FSRU - Jakarta Bay

PertaminaIndonesia

Local delivery, global resourcesOur Off shore Footprint in the Asia-Pacifi c Region

Liwan 3-1 Area FacilitiesDevelopmentHusky EnergyChina

Flex LNGInterOil, Pacifi c LNG, Liquid Niugini Gas Ltd & Samsung Heavy IndustriesPapua New Guinea

Flex LNG Image courtesy of Samsung

Bien DongPetrovietnamVietnam

Block 06.1 Phase III Lan Do Development ProjectTNK VietnamVietnam

Kumang Carigali Cluster DevelopmentPetronasMalaysia

Siakap North Petai Deepwater DevelopmentMurphy OilMalaysia

Wheatstone Development Project

ChevronNorth West

Shelf Australia

North Rankin Redevelopment ProjectNorth West Shelf Project North West Shelf AustraliaPhoto courtesy of

Woodside Energy Limited

PRP2 & PRP3LWIN/ONGCIndia

B193 Process Platform ONGCIndia

Gumusut Kakap FPUShellMalaysia

Kikeh Field Oil DevelopmentMurphy OilMalaysia

West Patricia Oil Field DevelopmentMurphy OilMalaysia

LNG Lekas Regasifi cation FacilitiesPetronasMalaysia

Gendalo Gehem Gas Field DevelopmentChevronMalaysia

Zawtika Gas Field DevelopmentPTTMyanmar

SHWE Field Development ProjectDaewoo E&P/HHIMyanmar

Platong Wellhead PlatformsChevronGulf of Thailand

Maui B FPSOShell ToddNew Zealand

Ichthys LNG Project  InpexNorth West Shelf Australia

Minimum FacilitiesApacheNorth West Shelf Australia

Bayu Undan Gas Recycling ProjectConocoPhillipsNorth West Shelf Australia

Bangka Deepwater Field DevelopmentChevronIndonesia

Tangguh LNG ProjectBP IndonesiaIndonesia

MalampayaShellPhillippines

Photographic Services, Shell International Limited

G1 & GS15 Field Development

ONGCIndia

TapisExxonMobilMalaysia

E11 SarawakShellMalaysia

Photographic Services, Shell International Limited

experience enables us to access relevant project data to deliver results that are both accurate and dependable. Co-location and workshare have also been important tenets to our success and have supported projects in countries including the Middle East, North America, Europe and Australia.

In most of the locations of our wholly owned partner, INTECSEA—which specializes in deepwater developments—WorleyParsons provides a single integrated project delivery service from wellhead to market in the region. The capabilities provided by INTECSEA complement our regional project

management and engineering capabilities, and are an example of our ability to adapt to the ever-changing needs of the industry.

Looking ahead, we have several important Improve contracts that are growing in strength, such as Chevron ECM in Indonesia, Brunei Shell and Shell Philippines. As economic growth—and the subsequent demand for energy—increases in this region, WorleyParsons is well-positioned to support this development.

OUR OFFSHORE FOOTPRINT IN THE ASIA‑PACIFIC REGION

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20 HQ Magazine Conference Spotlight

Conference SpotlightA look at the major conferences we're attending this quarter and the leaders driving our participation

Spotlight on Dr. Mike PaulinOPERATIONS DIRECTOR, INTECSEA & GLOBAL ARCTIC, SUB‑SECTOR LEAD, WORLEYPARSONS

Dr. Mike Paulin serves as INTECSEA's operations director for Canada, as well as WorleyParsons' global susbsector lead for Arctic.

In his INTECSEA role, Paulin leads the St. John’s, Newfoundland office, and has operating responsibility for the Company’s activity in Canada. He has more than 20 years of experience in offshore pipeline, risers and facilities engineering, including projects on the Canadian east coast, the Canadian Beaufort, the Canadian High Arctic, offshore Alaska, the Gulf of Mexico and Sakhalin Island. Paulin's experience includes innovative conceptual, preliminary and detailed structure and pipeline design for harsh environments. In 2001, he was a co‑recipient of Hart’s E&P Special

Now in its third year, the Arctic Technology Conference (ATC) has brought international operators, engineering companies, government service providers, universities and product suppliers from all sectors together in Houston to share their experience and expertise with the Arctic community.

Spanning three days (10-12 February 2014), the event has provided WorleyParsons and INTECSEA with the opportunity to sponsor, exhibit (Booth #218), deliver several technical papers and also publish the 2014 Survey of Arctic & Cold Region Technology for Offshore Field Development Poster. The poster contains a significant amount

of information and has proved to be a useful guide for those involved in Arctic development projects.

Additionally, on the day following the close of ATC, we will share the Arctic offshore pipelines knowledge and experience of our experts during a one-day technical course. The course will provide an overview of the key factors that differentiate Arctic offshore pipelines from conventional pipelines, and will also highlight some of the complex engineering challenges that have been addresses on successful pipelines projects offshore Alaska, Canada, Northern/Eastern Russia, and other cold regions. For more information on the course or to register (before 13 February), visit www.worleyparsons.com/ATC.

Meritorious Award for Engineering Innovation for the BP Alaska Northstar Subsea Pipeline—the world’s first Arctic offshore oil production pipeline.

His depth of experience in engineering for harsh environments is an asset to our Canadian customers, and he is a valuable contributor in the provision of our Arctic specialty engineering services globally, which has been one of INTECSEA’s core activities for more than 25 years.

In addition to his leadership roles, Paulin has recently carried out conceptual studies for major oil & gas producers with regards to proposed Alaskan pipelines, development scenarios for offshore Greenland, trenching technology development and engineering in support of Canadian east coast projects.

Dr. Paulin is presenting at the 2014 ATC conference in Houston and is on the 3rd Arctic Region Oil & Gas Conference Committee, supporting the event in Stavanger, Norway from 4‑5 March 2014.

HQ Magazine Upcoming Events 21

Connect with us on:

Spotlight on John Grill, AOJohn Grill began his distinguished career with Esso Australia and in 1971 established Wholohan, Grill and

Partners as a specialized engineering practice in the oil and gas industry.

His firm acquired the US company Worley Engineering (Australia) in 1987. Following group restructuring, in 2002 Worley Group Limited listed on the Australian Stock Exchange. In 2004, Worley Group Limited acquired Parsons E&C Corporation, a US‑based global project services company, and changed its name to WorleyParsons Limited.

Grill has personal expertise in every aspect of project delivery for projects in the resources and energy industries. He has been directly involved with most of the major customers of WorleyParsons and remains closely involved at board level with the group’s joint ventures.

His influence on Australian society was acknowledged in the 2014 round of Australia Day Honours with the receipt of an Officer in the Order of Australia award as detailed on page 23. He was named Engineers Australia Professional Engineer of the Year in 2006 and awarded an honorary doctorate by the University of Sydney in 2010 in recognition of his contribution to the engineering profession. He serves as Chairman of the National Precincts Board as well as on the board of Neuroscience Research Australia.

OTC Asia 2014Gastech 2014WorleyParsons and INTECSEA are jointly hosting booth E201 and several technical presentations on topics ranging from asset integrity design to deepwater platfirms and offshore pipelines will be given by experts from both teams each day of the conference.

Additionally, WorleyParsons' founding CEO and current chairman, John Grill represents the company as a member of the OTC Asia advisory board. For more information, visit www.otcasia.org/2014.

Together, WorleyParsons and INTECSEA are hosting stand L80 and presenting a paper on mimi-LNG as part of the technical program.

In addition, WorleyParsons' Global Director of LNG and FLNG, Paul Sullivan is a Gastech Co-Chariman and will open the technical stream on the final day of the conference. For more information, visit www.gastechkorea.com.

Spotlight on Paul SullivanPaul has more than 30 years experience in engineering and construction, 25 of which have been in the LNG and Energy industry. Geographically, his

career has covered construction and engineering activities in Europe, the Middle East, India, Korea, China, South East Asia and the Americas.

He was involved in the development from concept to implementation of LNG projects in British Gas in both liquefaction and regassification. He headed up their FEED group and was instrumental in developing their first grassroots liquefaction project in Trinidad, Atlantic LNG Train 1 from 1993 to 1998.

From 1998 to 2010, Paul served as the development and projects director within Whessoe Oil & Gas with sole and direct responsibility for front end engineering, product innovation and project development, together with operations responsibility for the western hemisphere, India and East Asia.

Since 2010 he has served as global director of LNG and FLNG for WorleyParsons, working with global LNG and infrastructure centers of excellence in Vancouver, Houston, London, Teesside, Mumbai, Beijing, Perth, Singapore, Brisbane and Melbourne to provide customers and partners with a full spectrum LNG and FLNG service. He is the Co-Chairman of Gastech, the pre-eminent global conference for LNG.

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22 HQ Magazine Office Intel

Office IntelHighlights from our locations around the world

WorleyParsons named one of Houston’s Top Workplaces

WorleyParsons’ United States and Caribbean (USAC) Southwest Operations location was named one of the Top Workplaces in Houston in November 2013, by the Houston Chronicle.

Every year, the Houston Chronicle gathers survey data compiled from Workplace Dynamics and tallies the results to determine the annual top workplace winners. This year was WorleyParsons’ first year to participate in the survey, and we were pleased to be recognized as one of the Top Workplaces in the large company category, which encompasses companies employing more than 500 people in the Houston area.

More than 68,000 Houston-area employees rated their employers in matters such as advancement opportunities, value of pay and benefits, and communication and management skills of their supervisors. This survey debuted in 2010 and now encompasses 150 companies in Houston.

WorleyParsons’ implementation of local 'Town Hall Meetings' and increased management interaction were key factors conveyed by our people that contributed to the result. Other employee citations included our team mindset and valuing employee opinions.

Michael Robinson, Southwest Operations' location manager, elaborated on the achievement: “It is an incredible honor to know that our employees feel so strongly about their association with WorleyParsons and that they have placed us near the top in one of the best employment markets in the world.”

We are honored that our talented team has ranked us so highly and appreciate their ongoing hard work, expertise, passion and dedication in making this company stand out as one of the best workplaces in Houston!

HQ Magazine Office Intel 23

WorleyParsons employees support typhoon and flood victims in the Philippines and Malaysia

WorleyParsons Business Service Center (BSC) employees in Kuala Lumpur (KL) have shown an outpouring of support for victims of recent natural disasters in Southeast Asia.

The team came together in November 2013 to support the victims of super typhoon Haiyan (local name Yolanda) in collaboration with the Philippine embassy in KL. Employees donated food, clean water, blankets and other essential items, and several members of the team assisted in packaging and hand delivering the items to the embassy, in addition to supporting victims through the WorleyParsons Typhoon Haiyan appeal. All donations have made a difference in the lives of survivors as they continue to struggle to meet their basic, everyday needs.

WorleyParsons employees also launched a relief program to assist thousands affected by the devastating floods on the East Coast of Malaysia (mainly the states of Kelantan and Pahang) in December 2013. The destruction hit close to home as several of our employees’ families and friends were directly affected. All donations were channeled through MERCY Malaysia—a non-profit organization focused on providing medical relief, sustainable health-related development and risk reduction activities for vulnerable communities in both crisis and non-crisis situations. All funds went toward aiding medical outreach clinics and the distribution of emergency food.

Neville Clement, BSC global operations director, commented on fundraising efforts saying, “Several of our employees were directly and indirectly affected by super typhoon Haiyan and the floods on the East Coast. I am extremely proud of the generosity displayed by our people in supporting these very deserving causes.”

WorleyParsons Founder and Chairman, John Grill presented with Order of Australia Award

The Order of Australia is an order of chivalry established in 1975 to recognize Australian citizens and other persons for achievement or for meritorious service.

WorleyParsons Founder and Chairman, John Grill, received the prestigious award in recognition of his four decade long contribution to engineering in which he transformed WorleyParsons from a small Australian-based firm to one of one of the world’s largest and most successful engineering and delivery groups. John was also recognized for the establishment of the John Grill Centre for Project Leadership at Sydney University and the work it does to improve the skills of managers responsible for the delivery of major projects.

John's talents as a engineer, business man, industry leader and visionary are all a matter of record. Congratulations to John on this well-deserved accolade.

For more information on the John Grill Centre for Project Leadership, at the University of Sydney, please visit: http://sydney.edu.au/john-grill-centre.

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Global HubLocal Office

Middle East, North Africa, India, Asia and China

Graham HillSenior Vice PresidentE: graham.hill@worleyparsons.com

Subsectors and Business Lines

Chris MoleSenior Vice PresidentE: chris.mole@worleyparsons.com

USA, Caribbean and Latin America

Jan Van WilligenSenior Vice PresidentE: jan.vanwilligen@worleyparsons.com

Europe and Sub‑Saharan Africa

Jim OsbornSenior Vice PresidentE: jim.osborn@worleyparsons.com

Canada

Mike KingSenior Vice PresidentE: michael.w.king@worleyparsons.com

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

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

HQmagazineHydrocarbonsQuarterly

Australia and New Zealand

Scott HugheySenior Vice PresidentE: scott.hughey@worleyparsons.com