40 - Sept. 2009

2 THE IPLOCA NEWSLETTER

CONTENTSLetter from the President 3

News from Geneva 4

Board Meeting Update 5

Training Committee 7

Health, Safety & Environmental Awareness 8

Health & Safety Award 9

Membership 10

Member news 11

On the Road to Success 13

Convention Update 14

In the Headlines 16

Upcoming Conferences 17

Elections to the Board of Directors 18

IPLOCA Board of Directors 19

The following is the IPLOCA Mission for 2009 and beyond:To provide value to members through a forum for sharing ideas, engaging the industry and its stakeholders, facilitating business opportunities and promoting the highest standards in the pipeline industry.

IPLOCA Secretariat

International Pipeline & Offshore

Contractors Association

Chemin de Blandonnet 2

1214 Vernier/Geneva

Switzerland

Telephone +41 22 306 02 30

Fax +41 22 306 02 39

E-mail [email protected]

Website www.iploca.com

IPLOCA Newsletter

Editor Elizabeth Spalding

Lay-out Peter Schoonenberg

Advertising [email protected]

Comments & copy [email protected]

IPLOCA © 2009

Cover photo

Courtesy of McConnell Dowell Corporation Ltd IPLOCA Yearbook

Advertising [email protected]

Listing changes [email protected]

Letter from the President

I hope that this newsletter will reach you before you pack your

bags for San Francisco. Everything is in place and we are ready

for another highly successful convention in this wonderful

location.

We again thank our sponsors for their continuous support for

this great event.

This extremely busy year for IPLOCA has passed very quickly. Our Members have

fully supported IPLOCA by participating extensively in our Regional Meetings and by

providing the key experts for our committees.

To provide just one striking example, more than 40 companies, including some of our

clients, and more than 110 persons in total, have participated in the various working

groups of our Novel Construction Initiative.

This support for Novel Construction has ensured the on-time production of its first

deliverable in San Francisco where “The Road to Success” will be presented. The Novel

Construction Initiative will continue next year and is a great example of what can be

achieved using IPLOCA as a forum for valuable initiatives relevant to our pipeline

industry.

The Training Committee has also seen significant developments in the last year and

is progressing quickly towards delivering high-value information to our Members.

Leonid Bokhanovskiy of Stroytransgaz has played an active role in the promotion of this

committee and recently hosted a meeting of the Training steering group in Moscow.

HSE is always at the top of IPLOCA’s priorities and in addition to their committee

activities, the members of the HSE Committee have also actively participated in the

Novel Construction Initiative.

It has been a great honour and a pleasure to serve as your President during this 2008/

2009 term. I wish to thank all the board members and the staff of the IPLOCA Secretariat.

Gilberte and I wish you the best and hope to see you in San Francisco.

Bruno de La RoussièreBruno.delaroussiè[email protected]

NUMBER 40 SEPTEMBER 2009 3

4 THE IPLOCA NEWSLETTER4 THE IPLOCA NEWSLETTER

NEWS FROM GENEVAIt seems that most people are on vacation – judging by the

weekend gridlock on major routes heading down to the

Mediterranean and the absence of people in Geneva. The

roads are so quiet during the week that the commute to

the IPLOCA Secretariat takes only half the usual time.

But it’s time for us to finish coordinating all the last minute

details for the Convention, check and double check our

to-do lists, and pack the inevitable trunks of materials

in preparation for our exodus to San Francisco. By the

time we return, schools will be back in session here and

memories of Mediterranean holidays will be fading, along

with sun tans…

Caroline Green, Convention Manager and Sarah Junod, Accoun-

ting Manager in the Geneva Secretariat office.

In the meantime, though, to give you an idea of what to

expect on Thursday and Friday at the Convention, below

you can find a list of the presentations for the Open

General Meetings. We are pleased to be able to offer this

broad range of topics from some excellent speakers:

In Search of Excellence in Pipeline ProjectsThursday, 9:10 – 9:40 am, Fairmont Terrace Room

Leslie Link, Manager, IPA Refining, Petrochemicals,

Pipelines & Terminals

Billions of capital dollars each year are being spent globally

on pipeline projects. Unfortunately, history suggests

that larger projects are at increased risk of poor cost

and schedule performance. IPA has conducted extensive

research into the functioning of capital projects and

project systems to understand the key drivers of project

performance and has identified key industry Best Practices

that drive excellent pipeline project performance. This

presentation will summarize these Best Practices and share

findings on how to avoid poor project performance.

Oil and Gas Pricing and ForecastingThursday, 9:40 – 10:10 am, Fairmont Terrace Room

Perry A. Fischer, Editor, World Oil

Why are oil and gas prices so volatile? Are we dealing

with peak oil, peak demand, or simply peak nonsense?

What, if any, role do traders play? Are media darlings

Boone Pickens and Matt Simmons conveying a misleading

message to Wall Street and Main Street? What are the

near- and long-term forecasts for supply and demand?

World Oil’s Perry Fischer takes a truly unbiased look at the

real economics of bringing oil, natural gas, and liquids to

market; the prospects for light and heavy supply, oil and

gas prices, and details some of the exciting new sources

for oil and gas likely to impact world supply through in

coming years.

Perspectives on North America Pipeline Projects in Coming YearsThursday, 10:30 – 11:00 am, Fairmont Terrace Room

Donald (Don) Wishart, Executive Vice-President, Operations

& Engineering, TransCanada

Supply and demand dynamics in North America for

both oil and natural gas have changed significantly

in recent years. Changes in oil supply will be dictated

by developments associated with Canadian heavy oil

production while natural gas supply dynamics will be

predominantly influenced by shale gas and northern

frontier gas developments. Demand for both commodities

will be influenced by marginal production costs and

by environmental legislations which create substantial

demand uncertainty. Collectively, these developments

should provide significant pipeline opportunities

throughout North America. Mr. Wishart will offer his

perspectives on the scope of potential pipeline projects

throughout North America over the next couple of decades.

The Importance of Visible LeadershipThursday, 11:00 – 11:30 am, Fairmont Terrace Room

Rebecca Roberts, President, Chevron Pipe Line Company

Managers often think that by simply stating their

expectations for a safe workplace that results will


immediately follow. This discussion will address the steps

that managers should take to engage their workforce

and to visibly demonstrate their commitment to safety.

Topics will include setting priorities, defining expectations,

assigning accountability, monitoring performance and

taking corrective action when necessary. Also included is

a discussion of balancing safety with cost and schedule

constraints.

Lands of SakalinFriday, 10:15 – 10:45 am, Fairmont Terrace Room

Daslav Brkic, Vice President Business & Technology

Development, BU Onshore, Saipem and Lucio Linassi,

Russia Area Manager & Sakhalin2 Project Director, Saipem

The Sakhalin II project on the remote Russian island

in far eastern Siberia has been one of the largest and

most challenging integrated projects in the history of

oil and gas exploitation: tens of billions of US dollars of

overall investment, numerous design and technological

challenges, tens of thousands of construction workers

employed in a harsh subarctic environment to build

offshore platforms, offshore and onshore pipelines, oil and

gas processing facilities, an oil export terminal and Russia’s

first plant to liquefy and export natural gas. The project

involved 600,000 engineering man-hours performed in four

operating centres and almost 100 million site construction

man-hours. Following a brief introduction, a movie will be

shown to visually illustrate the project challenges.

The Role of Engineers in Poverty Reduction: Challenges and OpportunitiesFriday, 10:45 – 11:15 am, Fairmont Terrace Room

Dr. Bernard Amadei, Engineers without Borders-

International

Today, an estimated 20 percent of the world’s population

lacks clean water, 40 percent lacks adequate sanitation,

and 20 percent lacks adequate housing. In the next two

decades, almost two billion additional people are expected

to populate the Earth, 95 percent of them in developing

or underdeveloped countries. This growth will create

unprecedented demands for energy, food, land, water,

transportation, materials, waste disposal, earth moving,

health care, environmental cleanup, telecommunication,

and infrastructure. As we enter the first half of the 21st

century, the engineering profession must embrace a new

mission statement—to contribute to the building of a more

sustainable, stable, and equitable world.

BOARD MEETING UPDATEBeijing, June 2009

No visit to Beijing is complete without a stop at Badaling and the

Great Wall. Not for the faint of heart, especially in the extremely

high temperature, it’s a steep climb. Marguerita Jannuzzi

(foreground) considers a quicker way down…

Taishan Construction Machinery, an Associate Member of IPLOCA

since 2007, kindly held an evening dinner for the Board Members

and their guests in Beijing, hosted by Taishan’s Chairman of the

Board, Xushan Song.


Former President of CPP, Shifeng Su (in background) entertained

IPLOCA guests at a restored traditional home in the Hutong

(lanes) area of downtown Beijing, complete with traditional

Chinese music.

Karl and Christine Trauner of Habau enjoy a continuation of the

traditional music provided during the hors d’oeuvres.

CommitteesThe New Technologies, Training, Health, Safety &

Environment and Strategic Development committees each

met and later reported to the full board. More information

about the committees is on the following pages.

Milan Meeting of IPLOCA, APIA, EPRG and PRCI

Juan Arzuaga reported on the excellent meeting he

attended in Milan with EPRG, PRCI, and APIA. A mutual

cooperation proposal was discussed in Milan with these

three Associations and was presented to the Board to

include IPLOCA in a formal and mutually beneficial

relationship with these groups. IPLOCA would have voting

rights in research programs which it has helped to fund.

The major owners and operators are also involved in

the work of the group and were well represented at the

meeting. The group is more client-oriented than contractor-

oriented, but is keen to receive input from the contractors.

Regional Meetings

Germany - AustriaKarl Trauner provided the Regional Meeting Report for

the Hannover Meeting. Sixty-three percent of regional

members (from Austria, Germany and part of the

Netherlands) were represented at the Hannover meeting

which included an excellent presentation by Eon Ruhrgas

and a visit to an engineering company specialising in

underground gas storage.

ChinaA first regional meeting was held in China on 19 May.

Some difficulties were encountered due to H1N1 flu, and

not many Chinese contractors were able to attend, but the

group heard interesting presentations on the market in

China and from Chinese suppliers.

Treasurer’s ReportPhil Bond indicated that the 2008 Audit had been

successfully completed and he presented the final figures.

- to instruct LODH to sell all the equity, all the

LODH bonds and structured products at the appropriate

date

- to check the position of the non-LODH bonds. If not

in LODH’s name, to transfer them immediately to an

investment account in Crédit Suisse. If in LODH’s name

to sell them.

- to ask Crédit Suisse to hold the funds on our behalf with

the payment of 0.2% custodial fee on the products only

excluding cash and deposits

- to place all cash proceeds into a fixed interest fiduciary

deposit account

- to send any additional proposals to the board for further

discussion

- to use Crédit Suisse for advice unless the board

identifies another advisor

- to undertake these actions in the next months, by

August 2009.


TRAINING COMMITTEE Members Meet in MoscowRepresentatives of the IPLOCA Training Committee met on

13 July in Moscow at the offices of Stroytransgaz, hosted

by committee chairman, Leonid Bokhanovskiy.

Also attending the meeting were Vladilen Ermolin, General

Director of PTPS: Erhan Hersek, the HR coordinator from

Tekfen; Ralf Prior, HR representative from Habau; Hans

Ringers, IPLOCA Consultant; Leyla Shamuzova, Senior

Specialist in Business Development, Stroytransgaz;

Karl Trauner, Second Vice-president of IPLOCA; Gennady

Vasiliev, Head of the Department of Pipeline and Storage

Facilities Gubkin Russian State University of Oil and Gas;

Valery Volodzka, Business Development Manager, Habau;

and Juan Arzuaga, Executive Secretary of IPLOCA.

During the meeting members of the Steering Group were

appointed, the primary objectives and a road map for the

committee were discussed and roles were assigned to

each member of the group. The committee also discussed

the involvement of the World Federation on the subject

of training and made plans for its next meeting and

conference calls.

Mission The mission of the committee is to assist members

of IPLOCA in fostering a bonding process between

contractors, suppliers and clients to improve pipeline

project execution through training, to solve the problem of

the shortage of skilled personnel, to develop competencies

and to contribute to the increase of new talented specialists

that work in the on- and offshore pipeline industry.

Objectives - To gather and provide information for members

of IPLOCA on main educational sources, such as

educational establishments and/or associations that

provide training in the on- and offshore pipeline

industry, taking into consideration the various

geographical areas

- To encourage young operational people to become

trained in the science of communication and to help

bridge the gap between technology and society

- To mutually promote our jobsites as an effective platform

for experience exchange, competence development and

first/initial practice for young specialists and students in

the oil and gas construction industry.

- To attract clients and suppliers to support the work of

the Training Committee.

- To cooperate with educational establishments and

Academic Members of IPLOCA in developing special

training courses and seminars for the on- and offshore

pipeline industry

- To create a sound platform for cooperation in training

with the World Federation (WFPIA) to encourage the goals

and targets set in the on- and offshore pipeline industry.

Immediate actions - To complete information on the well known educational

establishments in the world which provide training in

the on- and offshore pipeline industry, and include the

detailed programs

- To organize visit(s) to job sites for pipeline projects,

whereby three potential project managers from a

region and seven students from different universities

have the opportunity over a two day period to become

acquainted with a pipeline project in a “remote or

special” area, different from where they presently work.

- Organize a 2-3 day seminar under the guidance of

IPLOCA to consolidate the communication skills of

project managers or senior engineers operating in the

field of our industry on an international business. Hans

Ringers will prepare a draft program of the proposed

seminar.

- A questionnaire will be prepared and sent to all

members to request their input about their expectations

from the Training committee.

Left to right: Hans Ringers, Karl Trauner, xxx, xxx and xxx discuss Training initiatives at Stroytransgaz offices in July.


41%

18%

14%

9%

3%1%

14%

Road traffic accidentsInvolving fallConstruction equipmentHand toolVehicle accidents

Earth collapse

Others

HEALTH, SAFETY AND ENVIRONMENT (HSE) The HSE Committee met at the Geneva Secretariat on

8 July 2009 with the following members in attendance:

Adam Wynne Hughes, Land and Marine (Committee

Chairman); Dinç Senlier, Tekfen Construction and

Installation Co, Inc; Amir Tajik, Max Streicher; Martin

Coleman, Spiecapag; Frank Green, PIH, Paul Conway,

C.A.T; Knud Petersen, Shell; Juan Arzuaga, IPLOCA

The committee discussed a number of topics and reviewed

the entries for the upcoming Health & Safety Award

sponsored by Chevron. A Climate Survey to assess the

way our clients see members’ performance on HSE was

proposed and members of the committee were asked

to submit their ideas. Environmental indicators had

previously been discussed and it was agreed to raise this

matter again once the indicators are defined and listed.

Continuity of HSE Committee InitiativesMembers of the HSE Committee were asked to confirm

their willingness and availability to continue to participate

on the committee. Adam Wynne Hughes will probably

step down as Chairman during his upcoming IPLOCA

presidential year and hopefully the incoming IPLOCA

1st Vice President will take over this position.

Adam thanked the HSE Committee Members for helping to

achieve the majority of the objectives set at the beginning

of the year and thanked the IPLOCA Secretariat - in

particular Sarah Junod - for helping with all the actions to

improve IPLOCA’s HSE focus.

2008 Health & Safety Statistics Submissions Received Almost 80 percent of member companies have

submitted their required Safety Statistics for 2008. The

remaining companies are receiving a personal e-mail

asking for their return or to provide an explanation of

why they are unable to do so.

Submission of Statistics is a requirement for all

Members and a prerequisite for entry into the 2008

Health & Safety Award sponsored by Chevron.

History of Man Hours

0

10

20

30

40

50

60

70

80

90

100

3465 3466 3467 3468 3469 3470

Submissions

90 91 66 82 86 91

2003 2004 2005 2006 2007 2008

0

200

400

600

800

1.000

1.200

3465 3466 3467 3468 3469 3470

Man Hours

724.382.240 650.132.559 499.169.602 773.954.572 1.141.168.919 731.262.014

2003 2004 2005 2006 2007 2008

History of Statistics Returns15%

5%

3%

11%

12%1%6%2%1%

37%

6%Vehicle accidents

Lifting Operations

Work at height / scaffolding

Hand tool

Involving fall

Excavation / Earth collapse

Confined spaces

Impact with construction equipment

Welding operations

Hazardous substances

Electrical work

Radiography

Road traffic accidents

Others

Accident breakdown

2007

2008


IPLOCA HEALTH & SAFETY AWARD sponsored by Chevron

The Award entries were discussed at length during the HSE

Committee meeting and a balanced score card, previously

distributed to the committee members with the entries,

was used to determine the winners.

Recognizing exemplary success in improving safety

regulation and decreasing the number of accidents, the

Award will be presented in San Francisco on Thursday,

17 September.

The Award is given in recognition of achievements during

2008 aimed at improving the health and safety of the

pipeline industry such as:

- An outstanding Safety performance resulting from pro-

active programme/process

- A unique innovation to avoid accidents

- A creative initiative to enhance safe behaviors

- A new and well defined system, procedure or practice to

foster Safety improvements

- A very comprehensive Health program to protect

workers from diseases at site

- Implementation of lessons learned at all levels

In determing the winner, the following questions were

addressed

- Does it add value?

- Shows Management Commitment?

- Constitutes an identifiable step forward in Safety for the

Industry

- Efficiency of the achievement

- Other additional benefits

Health & Safety Award Submissions Many thanks to the following 17 companies for their

submissions for the Safety Award, in alphabetical order

by entrant as follows:

A.Hak

- Management of Sustainable Development

Dodsal

- Achievements on Proactive Measures with a Well

Defined H&S Management System

Habau – PPS

- “HABAUfit”

J. Ray McDermott

- Accident/Incident Investigation Program

Kalpataru

- HSE Initiatives

KazstroyService

- Uralsk Gas Pipeline Project

Larsen & Toubro

- Barmer-Salaya Pipeline Project

Ledcor

- Pipelayer Conversion – Rollover Protection Structure

Man Ferrostaal

- Preparedness is an Option

Nippon Steel

- Alert Response 2 Steps (AR2S)

NPCC

- Inspection, Testing & Tagging – Portable Apparatus

PIH

- Implementation of New OH&S Management System

Punj Lloyd

- Loop Line from Saih Rawl-Sadad

Sicim

- New HSE Training Center – Tengiz, Kazakhstan

Spiecapag

- Best Management of Subcontractors without

H&S Experience

Techint

- Environmental, Safety & Occupational Health

TL Offshore

- Together Towards HSE Excellence


MEMBERSHIPNew Associate Members

Darby Equipment Company, Tulsa, Oklahoma, USADarby Equipment was founded by Lee Darby in 1982

after he has spent more than 35 years in the Pipeline

Construction Industry. From their facility in Tulsa,

Oklahoma, Darby manufactures 6 to 48-inch pipe bending

equipment, pipe facing machines, line-up clamps, roller

cradles and other pipeline supplies. A long-standing

tradition of responsive customer service combined with

exemplary manufacturing and engineering expertise has

earned Darby Equipment a reputation as a preeminent

equipment supplier for the pipeline industry worldwide.

www.darbyequip.com

Zeppelin International AG, Zug. SwitzerlandThe Caterpillar dealer was founded to operate in CIS. Its

territory includes Western Russia, Byelorussia, Ukraine,

Turkmenistan, Tadjikikistan and Armenia. The company has

been deeply involved in the pipeline construction business

since 2006 when Zeppelin Rusland (the branch of Zeppelin

International AG in Russia) started to actively collaborate

with the leading national and worldwide pipeline

construction companies as a provider of CAT machines and

auxiliary equipment.

www.zeppelin.ru

New Members

SNC-LavalinSNC-Lavalin is one of the leading

engineering and construction groups in the world,

and a major player in the ownership of infrastructure

and in the provision of operations and maintenance

services. Founded in 1911, SNC-Lavalin has been active

internationally for 50 years, establishing a multicultural

network that spans every continent. The SNC-Lavalin

companies have offices across Canada and in over 35 other

countries around the world and are currently working in

some 100 countries.

SNC-Lavalin’s fields of activity cover the full spectrum

relating to the production, transportation, processing,

upgrading and delivery of conventional energy resources,

chemicals, petrochemicals and synthetic fuels. It maintains

state-of-the-art capabilities in steady state and transient

hydraulic and thermal analysis, as well as finite element

inelastic pipe analysis.

SNC-Lavalin has successfully executed and delivered

on an EPC basis, numerous pipeline contracts, in

ductile iron, steel, pre-stressed concrete cylinder pipe,

or thermoplastics, for the oil and gas and water and

wastewater sectors, with compliance to NACE for material

selection where required.

Noteworthy is the execution of a liquid sulphur slurry

pipeline project in Canada, with special designing of the

piping and heating of the slurry to maintain the liquid

state. Also of note is SNC-Lavalin’s participation in four

major water projects in Libya, including the operations,

maintenance, care and custody of the Sarir Plant to

manufacture pre-stressed concrete pipes to be used in the

Al-Kufra conveyance pipeline project to transport water

from the Libyan desert to the coastal cities.

Stroynovatsya Ltd The Company STROYNOVATSYA

LTD. was established in 2003 and has been working in the

construction of oil and gas industry facilities for six years.

Main business activities:

- Designing, engineering, procurement, construction,

installation and commissioning of oil loading terminals,

cross country oil and gas pipelines, tank farms,

pumping and compressor stations, river crossing, and

associated infrastructure including the replacement and

rehabilitation of oil and gas pipelines, civil works, supply

of equipment and materials.

- High qualified personnel and available state-of-the-

art machinery and appliances allow the Company to

undertake and complete complex projects within a short

time frame.

New Academic Member

Gubkin Russian State University of Oil and Gas, Moscow

In 1930 the then Moscow Academy of Mines was

reorganized into six higher educational institutes. The

Petroleum Engineering Faculty became the basis for

a new Moscow Petroleum Institute, named in honor

of Academician Ivan Gubkin, “due to his tremendous

contributions to higher education to train engineers

needed for the socialist industry”.

Today Gubkin Russian State University of Oil and Gas is a

modern technical university, one of the leaders in Russian

higher engineering education and has trained more than

85,000 graduates. The university is closely linked with

the Russian fuel and energy sector. The University Board


of Trustees include the country’s leading oil and gas

companies: JSC Gazprom, JSC NC Rosneft, JSC Lukoil,

JSC TNK-BP, RITEC, JSC Transneft, JSC Stroytransgaz

and others.

The university also has long-term cooperation agreements

with leading international companies including BP,

Shell, ConocoPhillips, Total, Schlumberger, Halliburton and

Baker Hughes.

www.gubkin.ru

ResignationsResignations have been received from the following:

Bachinger J., Austria

Garneau Inc., Canada

Induction S.r.l. Italy

Omnitest GmbH, Germany

TrenchTech International, Inc., USA

Ukrnaftegazbud, Ukraine

Yuzhtruboprovodstroy JSC, Russian Federation

Zangas JSC, Russian Federation

MEMBER NEWSFluor Secures Sakhalin-1 Chayvo Contract in RussiaFluor Corporation has announced that its Russian joint

venture Sakhalin Neftegas Technology LLC was awarded

a contract by Exxon Neftegas Limited, on behalf of the

Sakhalin-1 Consortium, for expanding its Chayvo Onshore

Processing Facility (OPF) located on Sakhalin Island off the

east coast of Russia. Fluor and SakhalinNIPImorneft are

joint venture partners in Sakhalin Neftegas Technology.

Fluor booked the approximately $700 million contract in

the first quarter of 2009.

“Helping our clients execute vast and complex projects in

remote and demanding geographic regions of the world

is one of Fluor’s key strengths,” said David Seaton, senior

group president of Fluor Corporation. “We are proud that

we were chosen for this strategically important project.”

Nacap wins 3 out of 5 lots of the Südschiene-Project of EVN Netz GmbHThe international pipeline contractor Nacap has won an

important assignment in Austria, where it has been active

since the nineties. The work is part of a larger project of

EVN Netz GmbH, which is since 2006 the network operator

of EVN AG (Energie Versorgung Niederösterreich). The

EVN-Pipeline is part of the route which was chosen as the

best alternative to solve capacity problems in the South

of Austria.

Nacap will construct 66 km 800 DN (32”) pipeline of the

total 120 km’s of the EVN-Project. The activities have

already started in May 2009 and will take approximately

one year. With up to 200 people working on the

construction, the project will form a significant contribution

to safeguard the employment in the region. The excavating

works will be executed by the local construction firms

GLS and L&G.

Nacap awarded QSN3 Pipeline Project in AustraliaNacap Australia is pleased to announce that it has

executed a Pipeline Construction Contract with Epic Energy

for the construction of the QSN3 Pipeline Project. The

scope of the project incorporates the looping construction

of approximately 940 kilometers of 18” gas pipeline from

Wallumbilla in South East Queensland to Moomba in

South Australia.

Location of the pipeline

The contract is conditional on Epic obtaining financial

close. Nacap expects it will be able to finalise the plans to

commence pipeline installation mid 2010, with facilities

construction likely to commence in Nacap’s Victorian

workshop from March 2010.

Tekfen Awarded New Contracts UAE – Abu Dhabi – SAS Full Field Development

Asab, Sahil and Shah fields are located approximately

100-220 km south of Abu Dhabi City. The main objective of

the project is to increase the current sustainable production

from all the three SAS fields with ASAB as the hub and


to provide additional capacity at ASAB to handle the

processing and export of crude. The upgrading of the Asab

field is esential to ADCO (Abu Dhabi Company for Onshore

Oil Operations) overall development plan to increase its

production and achieve the committed 1.8 million barrels

of oil per day production. In addition to the production

capacity upgrade of Asab, the scope includes upgrading

the facility’s capacity to accept increased production from

Sahil, Shah and other southeast fields and to upgrade the

associated utilities and water handling facilities.

Tekfen will provide fabrication, installation, pre-

commissioning, and commissioning assistance to

PETROFAC, the international oil & gas facilities service

provider, for the Structural, Mechanical, Electrical and

Instrumentation works of Central Degassing Station

facilities in the Asab Field to accommodate a sustained

Asab production rate of 345 Mbopd, and for construction

of 36”x 92 km Main Oil Pipeline to export a peak of 720

Mbopd. The contract value is USD 225,000,000, with an

anticipated completion date of September 2012.

J. Ray McDermott Completes Construction of PEMEX Maloob-C Platform Bound for Bay of Campeche Houston-based J. Ray McDermott (“J. Ray”) recently bid

farewell to the Maloob-C drilling platform, built under a

contract for PEMEX Exploración y Producción (“PEMEX”),

Northeast Marine Region. The project is located in the

Ku-Maloob-Zaap field in the Bay of Campeche, Mexico, in

264 feet of water.

“This was the first project for our fabrication facility at

Altamira, Mexico,” said John Nesser, J. Ray’s Executive

Vice President and Chief Operating Officer. “Building on

the successful completion of the Maloob-C platform and

with the facility’s capabilities and deep water access to

the Gulf of Mexico, we look forward to expanding our

relationship with PEMEX on future projects.”

Work on the drilling platform began in February 2008.

Fabrication of the two-level, 2,535-ton deck and the 3,527-

ton jacket, factory testing, onshore pre-commissioning and

operational testing, load out and sea fastening were all

performed by J. Ray at Altamira. Additionally, more than

3,300 tons of piles were fabricated at J. Ray’s Morgan

City, Louisiana facility for the project using the facility’s

rolling mill.

Qatar – Mesaieed – Low Density Polyethylene Plant (LDPE-3)Qatar Petrochemical Company (QAPCO) intends to

construct and operate a world class Low Density

Polyethylene Plant of 300,000 tons per year capacity

based on 8000 hours operation. This new LDPE plant

(LDPE-3) which will be using the excess ethylene produced

by QATOFIN and QAPCO, is based on BASELL GmbH

“Lupotech T Technology” and will be located within the

existing QAPCO boundaries in Mesaieed, Qatar.

The scope of the project includes the main units of the

processing plant, all the plant’s auxiliary systems located

in or around the area of plant, and the remaining utility

systems and facilities on site as necessary to support

the plant. Under the 30 months cooperation agreement

with UHDE GmbH of Germany, which has been awarded

this EPC contract by QAPCO, Tekfen will provide all the

construction works including civil, structural, mechanical,

piping, electrical and instrumentation works, and also

pre-commissioning and assistance to commissioning,

start-up and performance test activities for the LDPE-3

plant. The contract value is USD 165,260,300, with an

anticipated completion date of December 2011.

Mr. Abdullah Alsuwaiket (JV partner), Mr. Frans Nooren

(Chairman Stopaq Europe B.V.), Mr. Ron Strikker,

Ambassador of the Netherlands, Mr. Abdullah

Alsuwaiket (JV partner) share in the ribbon cutting

ceremony at the opening of Associate Member

STOPAQ’s new production facility in Dammam,

Saudi Arabia.

The plant will manufacture STOPAQ’s patented Viscous-

Elastic Corrosion Prevention Coating. Operating

under the name STOPAQ Saudi, this company is a

joint venture between a major oil and gas supplier,

Alsuwaiket Group, and STOPAQ EUROPE B.V. from

Stadskanaal, The Netherlands.”


ON THE ROAD TO SUCCESS A New IPLOCA Publication “Onshore Pipelines:

THE ROAD TO SUCCESS” will launch in San Francisco

In 2003 a joint project began to investigate and improve

the laying of large diameter pipelines for better, safer and

faster installation. The Land Train concept was studied and

a number of working groups were formed to identify the

main bottlenecks and fields for potential improvement.

The land train concept only addressed the pipeline

construction aspects, and was later dropped in favour of a

broader perspective

approach to address

all phases of the

onshore pipeline

project from early

development through

design, construction

and commissioning.

Working groups,

drawn from IPLOCA

member companies

and a select group

of international oil

companies, set out

to create a guidance

document. Their combined experience led them to

recognize why the industry has struggled on some

projects before, why many projects have succeeded and

what needs to be done in order to succeed more often.

How can companies anticipate and avoid challenges

before beginning construction, conduct construction work

to minimize exposure to further challenges and reach

the mutual agreement necessary for the foundation for

a successful contract, addressing both known and as yet

unknown challenges?

The intent of the Road to Success is to provide the

reader with the basic knowledge to improve the delivery

of a project, i.e. cost and schedule, while reducing the

environmental footprint and achieving the desired safety

objectives.

The resulting 400 page document “Onshore Pipelines/

THE ROAD TO SUCCESS”, is currently in print production

and will launch at the IPLOCA Convention in San

Francisco. It is hoped that “The Road to Success”

will assist all stakeholders in the development and

construction of pipeline projects -- project managers

and engineers working for investor/owners, designers

and environmentalists, construction contractors and

subcontractors and their construction personnel, senior

management and project engineers.

Finally, it is hoped that it will be of particular benefit in

training, used by students and teachers in the pipeline

industry.

Comments and enquiries may be addressed to

[email protected]

The list of those companies and persons having

participated in this joint effort is significant. A wide range

of companies and individuals from oil & gas investors

& owners, design companies, construction contractors,

suppliers and specialised subcontractors have collaborated

in this work to produce a document intended for wide use

in the pipeline Industry.

One copy will be made available to each Member

or Associate Member delegate at the San Francisco

Convention and to each participant having contributed

to the document. Additional copies will be available for

purchase in the weeks following the convention.

More information will soon be available at

www.iploca.com/roadtosuccess

Contributing Companies:

We are very grateful to the following companies for

providing their expertise to the Road to Success.

A full list of individual acknowledgements is included

in the document.

Akzo Nobel, Bonatti S.P.A, Borealis AG, BP, Bredero

Shaw, BS Coatings, Canusa CPS, Caterpillar, CCC,

Chevron, CIT, ConocoPhillips, CRC-Evans, Denso, E.ON

Ruhrgas, Elmed, ENI, Entrepose, Europipe, Fluor, Fugro,

GDK, Gulf Interstate Engineering, HABAU, Heerema,

Herrenknecht, Industrie Polieco MPB, IPA Global,

IPLOCA, ITI Energy, Jotun Powder Coatings, Land and

Marine, Laurini Officine Meccaniche, Maats, Petrobras,

PIH, PRCI, Rosen, RSK Group plc, Serimax, Socotherm,

Somico, Spiecapag, Tenaris-Confab, Tesi, Tesmec, Total,

Vietz and Volvo


CONVENTION UPDATEWe Can’t do it Without You! Sincere Thanks to our Valued Sponsors

We are very grateful to have received the following

sponsorships for the San Francisco Convention, and take

this opportunity to recognise the support of the following

companies in these difficult economic times:

Special Functions:

The First Time Attendees Cocktails

Pipeline & Gas Journal and Ozzie’s

Pipeline Padder, Inc. (co-sponsorship)

The Welcome Party

Dodsal Group

President’s Dinner

Entrepose Contracting and IPLOCA

(co-sponsorship)

Directors & Wives Dinner

Ritchie Bros. Auctioneers

Former Presidents’ Cocktails

Zakhem International Construction Ltd

The CRC-Evans Luncheon

CRC-Evans Pipeline International and

co-sponsored by Applus RTD Group

The Caterpillar Evening

Caterpillar

Fireworks

Laurini Officine Meccaniche

The Spy Ladies Brunch

Pipeline Inspection

Members & Associate Members

Cocktails

Volvo Construction Equipment

Members & Associate Members Lunch

Herrenknecht

Wine for Members & Associate Members

Lunch

Herrenknecht

The John Fabick Cocktail Party

Pipeline Machinery Int’l

Music for “Dancing ‘til Dawn”

Trencor/Astec Underground and

American Augers

Open Bar for “Dancing ‘til Dawn”

Jindal Saw Ltd.

PIH Golf Tournament

Pipeline Induction Heat

WWM Tennis Tournament

Worldwide Machinery

Tour Programme:

1. Journey through

Wine Country

ARB Inc. and IPLOCA

2. Alcatraz

Lincoln Electric

3. San Francisco by Motorized Cable Car

Spiecapag

4. Journey through Wine Country

Available

5. Alcatraz

ShawCor Ltd

6. Museums of San Francisco

Serimax

7. Muir Woods & Sausalito

CPP China Petroleum Pipeline and

Taishan Construction Machinery Co. Ltd

(cosponsorship)

8. Alcatraz

Borusan Mannesmann

9. San Francisco by Motorized

Cable Car (for latecomers)

Salzgitter Mannesmann International

Convention / IPLOCA Functions:

Registration Desk

Ritchie Bros. Auctioneers

Welcome Drinks at Registration

J. Ray McDermott, Inc.

Internet Centre

Consolidated Contractors Company (C.C.C.)

Coffee breaks at Open General Meetings

C.A.T. International Ltd.

Audio Visual at Open General Meetings

Land and Marine Project Engineering

Registration Bags for the Gentlemen

ShawCor Ltd.

Registration Bags for the Ladies

Spiecapag

Wine at Final Banquet

Willbros Group, Inc.

Flowers at Final Banquet

Fluor

Band at Final Banquet

Koop Holding Europe b.v.

Entertainment at Final Banquet

HABAU Hoch- und Tiefbaugesellschaft

and PPS Pipeline Systems

(co-sponsorship)

Audiovisual at Final Banquet

Available

Car for Lottery

Ledcor Pipeline Limited

Photographers at the Convention

PTPS & Tefken Construction and

Installation Co., Inc. (cosponsorship)

Convention Photo CD

ROSEN Group

Printing of Pocket Programme

Goriziane S.p.A.

Printing of Final Banquet Menu

Goriziane S.p.A.

Printing of Attendance List

Pipeline & Gas Journal

Russian Simultaneous Translation

Argus Limited

Coaches to the Airport

Max Streicher & Co

Convention Fund Contributions

Fluor

Insight Guide to California

Maats Pipeline Equipment

Liebherr model

Liebherr

Gift

Denso GmbH, Petro-Force

Champagne at Final Banquet

Socotherm


Lottery to benefit Caritas Internationalis

Following IPLOCA tradition, President Bruno de La

Roussière and his wife Gilberte have selected the

charity which will receive the proceeds from the lottery

in San Francisco. Their chosen beneficiary is Caritas

Internationalis.

Caritas has many faces - community centre and

international relief agency, home for the elderly and school

for the former child soldier, HIV care provider and human

rights campaigner.

The charity provides assistance to the poor, the vulnerable

and the excluded on behalf of a billion Catholics around

the world. It works on humanitarian emergencies, on

human development and on campaigning against poverty,

exclusion, intolerance and discrimination.

www.caritas.org

We are delighted that Ledcor Pipeline

Limited will provide a certificate (value

USD 35,000) for the lucky car lottery

winner and that all proceeds from the

lottery will go directly to the Caritas Internationalis.

Tickets are USD 75 each and may be purchased at the

Convention Registration Desk all week, with the drawing

to take place as the climax of the Final Banquet on Friday

night. Although you must be present to win, anyone unable

to attend the Final Banquet may contact the Secretariat or

make a direct donation the charity at www.caritas.org

“C’mon folks…last chance to support this worthy cause!”Master of Ceremonies, Butch Graham, of Ritchie Bros

Auctioneers will again be leading the festivities at the

Final Banquet in San Francisco.


IN THE HEADLINESPutin marks construction of new pipelineRussian Prime Minister Vladimir Putin attended opening

ceremonies Friday for construction of the first leg of a new

natural gas pipeline in Russia’s Far East. The Sakhalin-

Khabarovsk-Vladivostok pipeline is designed to boost

economic recovery and also supply natural gas to Asia and

the Pacific Rim, Russia’s ITAR-TASS news agency reports.

United Press International, 31 July 2009

Oil prices rise after US government reports rising imports and IEA lifts forecastOil prices rose as the market reacted favorably to signs

of an increase in future demand in China and a further

loosening of the recession’s grip in the U.S. That trumped

data showing a continued slump in the nation’s appetite for

oil. Benchmark crude for September delivery climbed 71

cents to settle at $70.16 a barrel on the New York Mercantile

Exchange. In London, Brent prices added 43 cents to settle

at $72.89 a barrel on the ICE Futures exchange.

Chicago Tribune, 12 August, 2009

Emirates Pipeline Owner Completes Jumbo Bond Placement Dolphin Energy, the owner of a 226-mile natural gas pipe

in the United Arab Emirates, landed a massive refinancing

last Monday, including an upsized $1.25 billion bond issue.

The robust bond market allowed banks to scale back

their loan commitments to $1.42 billion. The $4.11 billion

package refinances a $3.45 billion bridge loan that expires

at month-end and was put in place ahead of securing

project financing. The two billion cubic feet per day natural

gas pipeline extends from Qatar’s North Field to Abu Dhabi.

International Investor, 14 August 2009

Ghana Signs Development Deal With International Oil FirmsGhana, riding high from President Barack Obama’s visit this

month, quietly signed a long-awaited development plan

for one of the biggest oil discoveries in West Africa in the

past decade. The agreement - reached July 15 with a group

of international oil companies after months of negotiations

- brings Ghana much closer to its stated goal of producing

oil by the second half of 2010. Celebrated for its democratic

rule and stability on a continent more often associated with

coups d’état and violence, Ghana is trying to figure out

how to handle the oil discovery responsibly and avoid the

problems that have beset other oil-rich African nations.

The Statesman Online, 28 July 2009

Huge tunnel to be built under San Francisco BayHoping to protect one of the Bay Area’s main water

supplies after the next major earthquake, construction

crews will soon embark on a job that sounds like

something out of a Jules Verne novel: building a massive,

5-mile-long tunnel underneath San Francisco Bay.

The project is believed to be the first major tunnel ever

built across the bay. Using a giant boring machine, workers

will carve a 14-foot high corridor through clay, sand and

bedrock from Menlo Park to Newark as deep as 103 feet

below the bay floor. They’ll then run a 9-foot-high steel

water pipe through the middle. “All the experts tell us

that within the next 30 years, there is a 63 percent chance

of having a major earthquake in the Bay Area,” said Ed

Harrington, general manager of the San Francisco Public

Utilities Commission, which is in charge of the project.

Energy Pipeline Asia 2009

IPLOCA Director and Director of AJ Lucas Group

Limited, Andy Lukas spoke at Energy Pipeline Asia 2009

on 25 June, in Beijing. His presentation, entitled Global

Oil & Gas Pipeline Construction and Pipe Technology

Trends discussed, among other topics, the vital role of

research and research cooperation among interested

parties, including a new cooperation among the

Pipeline Research Council International, the European

Pipeline Research Group, the International Pipeline

and Offshore Pipeline Contractors Association and the

Australian Pipeline Industry Association (APIA).


UPCOMING INDUSTRY CONFERENCES43rd Annual IPLOCA Convention

14-18 September 2009

San Francisco, USA

www.iploca.com

Pipeline Integrity Management

27-28 September 2009

Doha, Qatar

24th World Gas Conference (WGC2009)

5-9 October 2009

Buenos Aires, Argentina

www.wgc2009.com

Pipeline Technology 2009

12-15 October 2009

Ostend, Belgium

www.ti.kviv.be/conf/pipeline2009

Australian Pipeline Industry Association (APIA) Convention

17-20 October 2009

Cairns, Australia

Oil and Gas Transportation in the CIS and

Caspian Region 2009

11th annual meeting

20-22 October 2009

Moscow, Russia

www.theenergyexchange.co.uk

North African Oil and Gas Submit 2009

27-29 October 2009

Tunis, Tunisia

5th Asian Pipeline Conference & Exhibition

28-29 October 2009

Sabah, Malaysia

IMCA Annual Seminar 2009

Integrated Marine Operations in Challenging Times

4-5 November 2009

Rio de Janeiro Copacabana, Brazil

www.imca-int.com/events/seminar

Asia Pipeline Summit 2009

11-12 November 2009

Beijing, China

www.globaleaders.com/en/2009/aps

(IPLOCA Members will enjoy a 10% discount on registration fees)

World Gas Exchange - Asia 2009

16-19 November 2009

Shanghai, China

www.globaleaders.com/en/2009/aps

14th Turkmenistan International Oil & Gas Conference

17-19 November 2009

Ashgabat, Turkmenistan

www.oilgasturkmenistan.com/face

OGMT

Connecting with Solutions 2010

Oil & Gas Maintemance Technology Conference &

Exhibition & Pipeline Rehabilitation & Maintenance

Conference & Exhibition

18-20 January 2010

Manama, Bahrain

www.oilandgasmaintenance.com

PLCA 62nd Annual Conference

17-21 February 2010

Scottsdale AZ, USA

www.plca.org

DCA 49th Annual Convention

23-28 February 2010

Los Cabos, Mexico

www.dca-online.org

OCEANTEX 2010 including

Offshore Technology 2010

Gastech 2010

Refining 2010

Transport & Logistics 2010

3-6 March 2010

Mumbai, India

www.chemtech-online.com/oceantex

Hannover Messe

19-23 April 2010

Hannover, Germany

www.hannovermesse.de

No-Dig Moscow

The Leading trade Fair and Conference for Trenchless

Technologies in Russia, CIS and Baltic States

1-4 June 2010

Moscow, Russian Federation

www.nodig-moscow.ru


Title Members

in Region

Board

Members

Status at San Francisco

Europe Eastern 20 2

Leonid Bokhanovskiy Director Vacant seat

Kaan Dogan Director Vacant seat

Middle East & Africa 13 1

Najib Khoury Director To be confirmed

Nasser Issa Director Seat no longer vacant – only 13 members in region

Central Europe 10 1

Karl Trauner 2nd VP 1st Vice President

The Americas 16 2

Jésus Garcia Pons Director Vacant seat

Doug Evans Director Vacant seat

Europe Northwest 10 1

Adam Wynne-Hughes 1st VP President

Europe Mediterranean 21 2

George Demetriou Director Vacant seat

Vacant seat Director Vacant seat

Bruno de la Roussiere President Past President

East & Far East 16 2

Liu Weimin Director Vacant seat

Andy Lukas Director To be confirmed

Associate Members 114 2

Marco Januzzi Director To be confirmed

Greg Miller Director Vacant seat

ELECTIONS TO THE BOARD OF DIRECTORSOur sincere thanks to the following outgoing members

of the IPLOCA Board of Directors whose terms are

complete and/or whose board seats are becoming vacant

within their geographical area: Leonid Bohkhanovskiy,

Kaan Dogan, Nasser Issa, Jésus Garcia Pons, Doug Evans,

George Demetriou, Liu Weimin and Greg Miller.

Election ProcedureAt the San Francisco Convention designated Member

Representatives (one representative per Member company)

attend a short meeting of their appropriate geographical

area, hosted by the area director, on Thursday afternoon to

a) confirm a second term for incumbent directors and/or

b) to vote for new directors to serve on the Board of

Directors for 2009-2010.

Similarly, all Associate Members attend a meeting of

their peers to confirm or vote for their representative(s).

A completed blue ballot paper naming the chosen

representative to replace these directors must be delivered

to the Executive Secretary, Juan Arzuaga, in the IPLOCA

Office at the Fairmont by the Area Director or Associate

Member Representative no later than 6:30 pm on Thursday,

17 September.

ProxiesIf you are a Member or Associate Member carrying proxies,

a copy must be delivered to the Executive Secretary three

days in advance of the AGM - by Tuesday, 15 September, in

order to be valid.

Board Nominations will be presented to the Membership

for ratification on Friday morning at the AGM.

Vacant Seats - September 2009


Left to right, front row: Karl Trauner, John Reed, Adam Wynne Hughes, Bruno de La Roussière, George Demetriou, Phil Bond, Juan Arzuaga

Middle row: Greg Miller, Weimin Liu, Marco Jannuzzi, Doug Evans, Kaan Dogan, Roberto Castelli Back row: Luc Henriod, Andy Lukas,

Jesus Garcia Pons, Najib Khoury, Bob Deason, Leonid Bokhanovskiy Inset Nasser Issa

IPLOCA 2008-2009 BOARD OF DIRECTORS

OfficersBruno de La Roussière (Entrepose Contracting)

President

Adam Wynne Hughes (Land & Marine)

1st Vice President

Karl Trauner (HABAU)

2nd Vice President

Phil Bond (Pipeline Induction Heat)

Treasurer

John Reed (Heerema Marine Contractors Nederland BV)

Immediate Past President

DirectorsLeonid Bokhanovskiy (Stroytransgaz)

Director, Europe Eastern

George Demetriou (J&P)

Director, Europe Mediterranean

Kaan Dogan (Attila Dogan Construction & Inst. Co. Inc)

Director, Europe Eastern

H. Douglas Evans (Gulf Interstate Engineering)

Director, The Americas

Jesus Garcia Pons (ARB Arendal)

Director, The Americas

Nasser Issa (C.A.T. International Ltd)

Director, Middle East & Africa

Marco Jannuzzi (Caterpillar)

Director, Associate Members

Najib Khoury (CCC)

Director, Middle East & Africa

Andy Lukas (AJ Lucas)

Director, East & Far East

Weimin Liu (China Petroleum Pipeline Bureau)

Director East & Far East

Greg Miller (Pipeline Inspection Company Ltd)

Director, Associate Members

Directors at LargePhil Bond (Pipeline Induction Heat)

Roberto Castelli (Bonatti)

Bob Deason (J.Ray McDermott)

Executive SecretaryJuan Arzuaga

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40 - Sept. 2009

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