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PHASE V DEVELOPMENT INDUSTRY BRIEFING

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2 February 2005; DRIMS #1865348 Page 7 of 31. Project Overview ... Ocean freight (to fabrication yard, Fremantle or Dampier) Customs clearance ... – PowerPoint PPT presentation

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Title: PHASE V DEVELOPMENT INDUSTRY BRIEFING


1
PHASE V DEVELOPMENT INDUSTRY BRIEFING 2 February
2005 - Perth
2
Agenda
  • Introduction David Kobelke
  • Opening Hon. Clive Brown MLA
  • Minister for State Development
  • Project Overview / Execution Wim Kemper
  • Procurement Strategy Trevor Barwick
  • Construction / Contract Strategy Rob Holland
  • Australian Industry Participation Plans Clive
    Palmer
  • Questions Wim Kemper
  • Close Linus OBrien

3
Project Overview / Execution
  • Wim Kemper
  • Woodside General Manager
  • Onshore Projects Division

4
North West Shelf Project
  • Woodside aiming at new contracts with buyers in
    Japan, Korea China for deliveries Q4 2008.
  • LNG Phase V Expansion Final Investment Decision
    expected first half 2005, subject to Investor
    approval.

5
Benefits to Australia
The proposed projects investment raises
engineering and construction demand and
employment, especially in the period 2005 to
2008. At the construction peak, the project will
be supporting about 1000 onsite construction
jobs, plus additional jobs in suppliers
manufacturing shops. After completion the
Projects exports raise overall WA exports and
Gross State Product (GSP) by A1 billion. The
rise in GSP is more than 2. Expectations are
based on an additional 4 million tonnes per annum
of LNG over a 20-year period from 2008.
6
Project Overview
  • Background
  • Woodside is preparing for Phase V of NWSV Project
  • Expansion planning has been ongoing since 2003
  • Final Project Specification completed mid 2004
  • Final Investment Decision by Joint Venture
    Participants expected first half 2005
  • Project scope and schedule were confirmed in Q4
    2004

7
Project Overview
  • LNG industry is intensely competitive
  • Australia is a high cost country
  • Participants in NWSV expect Woodside to deliver a
    world class competitive project
  • Woodside to deliver on time and within budget
  • Front end loading work completed end 2004.
    (Execution Method and Schedule).

8
Project Overview
  • LNG Phase V Scope
  • 5th LNG Train (a carbon copy of Train 4 4.2
    mtpa)
  • Acid Gas Removal Unit
  • 3rd Fractionation Unit
  • 2 GT Power Generators (70 MW)
  • 3rd Boil Off Gas Compressor
  • LNG Jetty extension (spur) and 2nd Loading Berth
  • New Fuel Gas System Compressor
  • Brownfield tie ins and piping (including
    relocation of existing plant buildings and
    services)
  • Construction (and removal) of temporary
    facilities

9
Onshore Gas Plant
LNG 5
Existing LPG jetty
LNG Jetty Extension
Existing LNG jetty
10
(No Transcript)
11
Indicative Project Timing
  • Pre-FID Phase
  • FID
  • Engineering
  • Procurement
  • Construction
  • Commissioning
  • Deliveries

12
Project Overview
  • Foster Wheeler selected in a competitive
    tendering process as Pre-FID Contractor for
    further development of their proposal
  • During Pre-FID WorleyParsons assisted Foster
    Wheeler as sub-contractor
  • Award of an EPCm Contract is subject to Final
    Investment Decision.
  • Woodside Owners team highly integrated with EPCm
    contractor

13
Project Overview
  • Local resources boom constrains access to labour
    dictating a change in execution strategy for
    Phase V
  • Tenders for material equipment will be called
    both locally and offshore
  • Adequate time will be allowed to enable local
    companies to joint venture with offshore
    companies where specialist expertise required
  • Frame agreement in place with ICNWA to identify
    and capture opportunities for Australian
    participation
  • Engineering and Procurement will be executed in
    EPCm contractors home office

14
Project Overview
  • The aim for this Project is to be recognised for
    exemplary performance in
  • Maximising the value of NWS assets
  • Health and safety of all personnel involved in
    its execution and subsequent operation
  • Protection of the environment
  • Maximising opportunity for Australian suppliers
    and contractors where capable and globally
    competitive
  • Providing qualified individuals and enterprises
    of the local Aboriginal community with job
    opportunities

15
Procurement Strategy
  • Trevor Barwick
  • Foster Wheeler Procurement Manager

16
Procurement Strategy
  • Scope
  • Purchasing, material control, expediting,
    logistics
  • Equipment A366 m (indicative)
  • Bulk materials A165 m (indicative)
  • Number of packages 100-130 (indicative)
  • Vendor Pre-qualification Process
  • Technical, Quality Assurance, Commercial,
    Capacity
  • Industry Capability Network Western Australia
    coordination
  • Phase IV performance
  • Vendor Database
  • Vendor registration system via internet site
    location

17
Procurement Strategy
  • Tender Process
  • Australian Participation
  • ICNWA involvement to include competitive and
    capable Australian vendors
  • Lowest Australian tender fully conditioned in all
    evaluations
  • AIP Plans required for major suppliers/contractors
    with local content
  • Procurement Plan
  • Negotiated supply to achieve carbon copy with
    Phase IV suppliers where competitive
  • Competitive tendering for non carbon copy and
    wherever negotiations for carbon copy fail
  • Local vendors to tender on steel supply

18
Procurement Strategy
  • Tender Process (cont)
  • Request for Tender
  • Web based tendering
  • Sealed tender protocol
  • Tender Evaluation Criteria
  • Technical conformance to specifications
  • Quality
  • Carbon Copy
  • Commercial
  • Price/Terms and Conditions
  • Delivery
  • Capacity

19
Procurement Strategy
  • Worldwide Logistics
  • International Freight Forwarder
  • Retains overall responsibility subcontract to
    specialist companies
  • Export liaison
  • Ocean freight (to fabrication yard, Fremantle or
    Dampier)
  • Customs clearance
  • Warehousing/Marshalling
  • Transportation to Pre Fab site
  • Transportation from Australian suppliers works
    to site

20
Construction / Contract Strategy
  • Rob Holland
  • Foster Wheeler Construction Director

21
Construction Scope of Work
  • On Site
  • Site Preparation / Temporary Facilities
  • Temporary Facilities
  • Civil Works
  • LNG Train 5
  • Acid Gas Removal Unit
  • Fractionation Unit
  • Power generation
  • Jetty Extension
  • Utilities and interconnections
  • Tie-ins
  • Off Site
  • Pre-Assembly
  • Steel fabrication
  • Pipe fabrication

22
Tangible Quantities(indicative)
Major Equipment pieces
237 Earthworks (Excavation Backfill) 199,576
m3 Concrete (Foundations Paving) 23,203
m3 Structural Steel 13,574 tonnes Above
Ground Piping 113,292 m Underground Piping
5,310 m Underground Electrical Cable 335,989
m Above Ground Power Control Cable 126,502
m Instrument Cable 402,785 m Lighting Cable
134,169 m Earthing Cable 42,116 m
23
Construction Execution Strategy
  • On site works
  • Maximise practical and cost effective
    prefabrication
  • Early award of pre-assembly site preparation
    and civil works
  • Maximum segregation between civil and above
    ground work
  • Engage Erection Contractors to execute on-site
    work
  • Direct work packages Discipline based
  • Key Erection Contractors identified and
    pre-qualified early
  • Key Erection Contractors involved in
    pre-construction detailed planning
  • Identification of interfaces between
    disciplines,
  • Resource planning and Resource levelling,
  • HSE, IR, ER and quality management plans.
  • Commissioning and Start-Up assistance within
    scope of Erection Contracts.

24
Contracting Strategy
  • Prefabrication Pre-assembly
  • Maximisation of Australian content subject to
    global competitiveness.
  • Competitiveness measured on basis of costs
    delivered at site (Burrup).
  • Site Preparation, Civil and general services
    contracts
  • Tendered competitively within Australia.
  • Key Above Ground erection contracts
  • Mechanical, Electrical Instrumentation,
    Insulation Painting
  • Pre-qualified Australian Contractors,
  • Negotiated contracts
  • All contracts
  • Selection criteria proven capability capacity
    to manage HSE, IR, ER, quality of work and
    productivity.

25
Karratha Business Opportunities
  • Office Maintenance
  • Building, plumbing, air-conditioning
  • Site Maintenance and Misc. Work
  • Minor temporary civil works
  • Road maintenance
  • Lifting Services
  • Office Equipment and Supplies
  • Construction Supplies
  • Provision of non-permanently installed material
  • Vehicle Maintenance
  • Accommodation
  • Workshop Services

26
Indicative Construction Schedule(subject to FID
timing 1st half 2005)
27
Indicative Project Personnel on Site
1,000
900
Directs only
800
700
600
500
400
300
200
100
0
2005
2006
2007
2008
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
28
Indicative Contract Plan
29
Australian Industry Participation Plan
  • Overarching document to accomplish project
    objectives in maximising opportunities for local
    involvement.
  • Reflects WEL corporate objectives in providing
    full, fair and reasonable opportunity where
    capability, global competitiveness on HSR,
    quality and delivery exist.
  • Will ensure material selection considers grades
    and types locally available for local fabrication
    and manufacture.

30
Australian Industry Participation Plan
  • Specifies requirements for precise and regular
    reporting on local content
  • Will ensure utilisation of local database for
    potential local supply
  • ICNWA
  • Supply Base VRS
  • Phase IV Vendor/Supplier Lists
  • Project has formal agreement with ICNWA to
    further identify local capability
  • ICNWA will directly assist in formulation of
    Procurement Plans
  • Specific website will be established by EPCm to
    enable registration of Expressions of Interest

31
AUSTRALIAN INDUSTRY PARTICIPATION PROCESS
P R E Q U A L I F I C A T I O N
West Australian Companies
Supply Base VRS
WEL Supplier List
AWARD TO LOWEST LIFE CYCLE COST BIDDER
BID WORK
Other Australian Companies
ICNWA Identified
Non-Australian Companies
Expression of Interest
Inform ICNWA of winning WA or Aust Contractor/Sup
plier
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