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INSPECTION STANDARD - Oceaneering

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August 2011<br />

CONTRACT NEWS<br />

Two new major contracts awarded<br />

www.oceaneering.com<br />

A VIEW FROM THE CASPIAN<br />

Insight into life working in the Caspian Region<br />

IN ANGOLA<br />

Apprentice scheme introduced in Angola<br />

THE<br />

<strong>INSPECTION</strong> <strong>STANDARD</strong><br />

The newsletter of <strong>Oceaneering</strong> Inspection<br />

www.oceaneering.com<br />

September 2011


THE <strong>INSPECTION</strong> <strong>STANDARD</strong><br />

Notes from the editor<br />

Many thanks go out to all Oceaneers who have contributed to this edition of the ‘Inspection<br />

Standard’. As always we are offering a meal for two up to the value of £75, at any restaurant of<br />

choice to the <strong>Oceaneering</strong> employee who submits the best article.<br />

This editions winner is Stuart Kenny for his article ‘Advanced inspection technology in the Swiss<br />

mountains’ which gives an interesting insight into life working in one of our busiest departments.<br />

For the opportunity to win the meal for two in our next edition of the Inspection Standard please send<br />

all articles to myself, Martin Hockley, mhockley@oceaneering.com<br />

Good luck!<br />

An holistic view<br />

It’s August and it’s 45 degrees Centigrade in<br />

the UAE, over 100 degrees Fahrenheit in the<br />

Gulf of Mexico – in both cases with stifling<br />

humidity to add to the heat. Meanwhile, in<br />

the UK it’s been wet and windy most of the<br />

‘summer’. Nothing new about any of that,<br />

then.<br />

Still, business as usual continues in all of these<br />

areas, and also in the Caspian, Middle East, Asia<br />

and Australia, and other parts of the globe where<br />

<strong>Oceaneering</strong> Inspection conducts its business. Except<br />

that in our world nothing is exactly ‘usual’; new<br />

challenges emerge everywhere and amongst these<br />

we continue to have our successes.<br />

In this edition of the Inspection Standard we report<br />

on some new contract awards. Our Inspection and<br />

Integrity Management Group have picked up two<br />

new customers – Chevron in the UK and JV Gas in<br />

Algeria. We are delighted to have won this work<br />

and look forward to providing a high level of service<br />

to, and establishing strong relationships with, both<br />

companies. Equally we are especially pleased that<br />

BP have extended our contract for inspection and<br />

corrosion management services covering all BP’s<br />

offshore installations in the UK North Sea and all<br />

associated onshore terminals - this major contract<br />

employs in excess of 150 of highly qualified and<br />

experienced personnel alone. We are appreciative<br />

of the faith and confidence shown by our client in our<br />

continuing efforts to work with them to maintain and<br />

improve on the service. We were also very proud<br />

to have passed the two million man-hour milestone<br />

without a single injury or lost time incident on this<br />

contract.<br />

1<br />

We also report in this edition on other notable HSE<br />

achievements at Conoco Phillips Teesside crude oil<br />

reception facility and Eggborough Power Station<br />

in the UK, and achievement in the Caspian. My<br />

gratitude to all our personnel who have helped us<br />

reach these objectives.<br />

Performing the hazardous work we do in a<br />

safe manner is close to all our hearts. Not just<br />

in <strong>Oceaneering</strong> Inspection, but across all of<br />

<strong>Oceaneering</strong>’s diverse businesses safety is our<br />

number one ethic. First and foremost we want all<br />

our people to return home from work safely. We<br />

endeavour to do this by having robust HSE processes,<br />

by providing training and importantly by inculcating<br />

safety awareness and the cultural expectations which<br />

underpin everything. We encourage the reporting of<br />

any unsafe working practices and near hits, and we<br />

look to share learning.<br />

Finally our successes are all down to the dedication<br />

and efforts of the people who work for <strong>Oceaneering</strong><br />

Inspection. I’d like to recognise Dave Close our Site<br />

Manager at ConocoPhillips Teesside for leading the<br />

team that delivered the safety goal and thank you to<br />

all our long serving employees who are mentioned<br />

in this newsletter and those previously. It always<br />

surprises me to see the numbers who are hitting these<br />

service milestones. To Dai Hughes in Swansea, who<br />

has just completed 45 years with the company, a very<br />

big thank you too for your contribution and probably<br />

also your endurance!<br />

Eric Johnston<br />

Vice President <strong>Oceaneering</strong> Inspection


<strong>Oceaneering</strong>’s Inspection and<br />

Integrity Management Department<br />

has secured a new 3-year contract<br />

providing integrity management<br />

support to joint ventures between<br />

three major oil and gas operators<br />

in two locations in central Algeria.<br />

The award further confirms<br />

<strong>Oceaneering</strong>’s position as a<br />

leading provider of inspection and<br />

integrity services on the global<br />

stage.<br />

In Salah<br />

BP Exploration (El Djazair) Limited<br />

and its co-ventures, Société<br />

Nationale SONATRACH and<br />

Statoil North Africa Gas AS have<br />

together developed hydrocarbon<br />

reserves in the Sahara Desert<br />

region near the town of In Salah,<br />

Algeria. The facility has been<br />

on-stream since July 2004 and<br />

currently produces around 9<br />

billion cubic metres of gas per<br />

year. The dry gas is transported<br />

along a 500 kilometre pipeline<br />

to the major gas collection point<br />

at Hassi R’Mel from where it is<br />

exported to markets in Europe.<br />

In Amenas<br />

This association between BP<br />

Amoco Exploration (In Amenas)<br />

Limited (‘BP’) and its association<br />

partners, l’Entreprise Nationale<br />

Sonatrach and Statoil North Africa<br />

Oil AS is the largest wet gas<br />

project in Algeria and involves<br />

the development and production<br />

of natural gas and gas liquids<br />

from four wet gas fields in the Illizi<br />

Basin of south-eastern Algeria. The<br />

project, which was commissioned<br />

in July 2006, produces around<br />

10 billion cubic metres of gas and<br />

In March of this year <strong>Oceaneering</strong> Inspection<br />

commenced a new contract for the provision of<br />

inspection and corrosion management services<br />

onshore and offshore for Chevron North Sea Limited.<br />

The Chevron Corporation is one of the world’s<br />

leading energy companies, operating in over 180<br />

countries across the globe. Chevron North Sea<br />

Limited currently operates three assets within the<br />

United Kingdom Continental Shelf (UKCS) all of which<br />

will form part of <strong>Oceaneering</strong>’s inspection scope.<br />

Alba Asset<br />

This is a heavy oil field, located 130 miles north<br />

east of Aberdeen in an Eocene horizon overlying<br />

the Britannia gas field. The field consists of a fixed<br />

installation, known as the Alba Northern Platform and<br />

a Floating Storage Unit both installed in July 1993.<br />

Captain Asset<br />

Located 68 miles north of Aberdeen, Captain<br />

comprises a Wellhead Protection Platform and a<br />

Floating Production Storage and Offloading vessel.<br />

Erskine Asset<br />

This is the first high pressure/high temperature field to<br />

be developed on the UKCS and is located 150 miles<br />

east of Aberdeen.<br />

www.oceaneering.com/inspection/<br />

www.oceaneering.com<br />

<strong>Oceaneering</strong> secures ‘Integrity Management Support’<br />

contract in Algeria<br />

Chevron contract award<br />

2<br />

1.5 million cubic metres of liquids<br />

per year and<br />

In order to service the In Salah<br />

and In Amenas operations in<br />

and out of country a dedicated<br />

project team has been assembled<br />

and is based in <strong>Oceaneering</strong>’s<br />

Aberdeen office. With the<br />

support of specialist departments<br />

from within the organisation the<br />

team’s main responsibility is to<br />

provide a comprehensive integrity<br />

support service, which can be<br />

as diverse as producing a full<br />

failure risk assessment on a key<br />

part of the pressure/process plant<br />

system, to obtaining visas and<br />

mobilising specialist personnel<br />

and equipment from all parts of<br />

the globe.<br />

The offshore service includes five offshore Inspection<br />

Engineers providing management of inspection<br />

activities and an interface with Chevron North Sea<br />

Limited’s sub-contractors to carry out repair and<br />

maintenance activities.<br />

The onshore service includes personnel and facilities<br />

to support Chevron’s North Sea Limited’s offshore<br />

operations. Initially this will include inspection and<br />

integrity management personnel based in Chevron<br />

House, Chevron’s Aberdeen Office. In addition<br />

<strong>Oceaneering</strong> will provide specialist support such as<br />

corrosion engineering and pressure system support as<br />

required.<br />

<strong>Oceaneering</strong> look forward to forming a strong<br />

relationship with a new key customer - Chevron North<br />

Sea Limited.


THE <strong>INSPECTION</strong> <strong>STANDARD</strong><br />

BP extends <strong>Oceaneering</strong>’s ‘Inspection and<br />

Corrosion Management’ services contract<br />

<strong>Oceaneering</strong> are pleased to announce that BP have<br />

extended their current Inspection and Corrosion<br />

Management services contract for a further four<br />

years to a new completion date in 2015.<br />

The extension follows on from a successful 5-year<br />

contract relationship, during which time over 2<br />

million man-hours were worked without an injury<br />

or lost time incident. This major contract covers all<br />

of BP’s upstream oil and gas facilities in the UK,<br />

including offshore installations, onshore terminals<br />

and associated pipelines.<br />

The contract is managed from <strong>Oceaneering</strong>’s<br />

operational base in Aberdeen with strategic support<br />

provided by a network of UK branches supporting<br />

the worksites. Over 150 personnel are employed<br />

by <strong>Oceaneering</strong> on the contract, all dedicated to<br />

ACET backlog project success<br />

We are pleased to announce that the first phase of<br />

the Asset Condition Evaluation Tool (ACET) backlog<br />

project managed and resourced by <strong>Oceaneering</strong>’s<br />

Offshore Design Centre (ODC) in Chandigarh India<br />

has been successfully completed ahead of schedule.<br />

ACET is a software system supporting the<br />

management of corrosion, inspection and plant<br />

integrity processes and is an integral part of the<br />

corrosion management strategy. ACET presents<br />

the managers and engineers responsible for<br />

implementing, maintaining and improving the<br />

corrosion management strategy with knowledge and<br />

information on equipment condition.<br />

The ACET backlog project was set up initially for<br />

BP assets that, prior to 2006 when <strong>Oceaneering</strong>’s<br />

scope of supply was increased were inspected by<br />

different companies. As a result a large backlog of<br />

inspection data needed to be input into the system -<br />

an estimated, 87,000 man-hours of work. The ODC<br />

was set up to provide an effective and efficient way<br />

to input the large amount of data within a short time<br />

frame. The project involves the creation of AutoCAD<br />

drawings and the input of reports for vessels and<br />

pipe work. Phase One of the project related to,<br />

Bruce, Clair and Magnus assets while Phase Two<br />

addresses Andrew, ETAP, Harding, West Sole and<br />

Cleeton.<br />

Initial ACET training was carried out in July 2010<br />

by John Knott (CAD/Data Services Manager) and<br />

Graeme Taylor (CAD/Data Services Support) who<br />

spent a month in Chandigarh training twenty CAD<br />

3<br />

helping BP maintain and improve the integrity of their<br />

assets. The work consists of integrity and corrosion<br />

engineering support, the formulation of inspection<br />

strategies and schedules, and the execution of<br />

inspections including the utilisation of specialist and<br />

advanced NDT technology.<br />

John Watkinson, VP Inspection Europe stated “I<br />

am exceptionally pleased to be able to announce<br />

this award. For BP to have chosen to extend the<br />

agreement by 4-years is testament to the excellent<br />

quality of work we have done in support of our<br />

customer. The four year extension has specifically<br />

been agreed in order to give time for us to fully<br />

deliver value from our own ACET inspection software<br />

system and our industry leading Non Invasive<br />

Inspection (NII) technology”.<br />

Engineers. A further sixteen CAD Engineers joined<br />

the team in 2010 and were trained by Harmeek<br />

Singh, Design Engineer. Refresher training was<br />

carried out in February 2011 by Wallis Beattie (Data<br />

Management Project Manager) and Kirsty Taylor<br />

(Quality Assurance Co-ordinator) who during their<br />

visit took the opportunity to thank the team for their<br />

hard work in completing Phase One of the project<br />

by awarding gifts of a plaque and a laptop bag to<br />

each of the engineers. Engineering Managers Dileep<br />

Kumar and Harmeek Singh were also given gifts of<br />

appreciation for supervising the teams and ensuring<br />

the work was carried out to plan.<br />

Wallis Beattie and Kirsty Taylor with members of the project<br />

team during a recent visit to Chandigarh<br />

Work completed in 2010 exceeded expectations<br />

with over 36,000 reports and drawings entered<br />

in to ACET, significantly ahead of pedictions.<br />

<strong>Oceaneering</strong> would like to take this opportunity to<br />

thank the team and the managers for their efforts in<br />

making this project a real success.


In the pipeline<br />

The <strong>Oceaneering</strong>-O’Neill JV has<br />

successfully completed all four<br />

phases of the NMPP (New Multi<br />

Product Pipeline) project in South<br />

Africa for Transnet Limited. The<br />

main mechanical works were<br />

performed by a JV between Spie<br />

Capag-Group 5 and WK Welding.<br />

Phase 1<br />

Kendal to Waltloo, 16” diameter,<br />

89 km length, completed in<br />

December 2010.<br />

Phase 2<br />

Alrode to Langlaagte, 16”<br />

diameter, 31 km length, completed<br />

in January 2011.<br />

Phase 3<br />

Jameson Park to Alrode, 16”<br />

diameter, 42 km length, completed<br />

in January 2011.<br />

Phase 4<br />

Durban to Jameson Park, 24”<br />

diameter, 554 km length,<br />

completed in June 2011.<br />

The project started in July 2008<br />

on the line from Kendal to Waltloo<br />

and has progressed steadily until<br />

its recent completion. The pipeline<br />

is another project carried out with<br />

Spie Capag as the main contractor.<br />

The <strong>Oceaneering</strong>-O’Neill JV and<br />

Spie Capag relationship now<br />

dates back more than 25 years<br />

with many projects successfully<br />

completed around the world.<br />

The main welding works were once<br />

again serviced by the <strong>Oceaneering</strong><br />

X-ray crawler systems, with the<br />

daily production peaking at 220<br />

x 24ӯ welds, the day on day<br />

average being 160 welds. There<br />

were a maximum of 20 personnel<br />

employed on the project from<br />

Indonesia, South Africa and the<br />

UK performing crawler operation,<br />

directional X-ray tie in work,<br />

interpretation and supervisory<br />

duties.<br />

The NDT teams operated out of<br />

fivebases at the peak of production,<br />

spread over the whole length of<br />

the project, with a team being<br />

based in Durban to carry out<br />

the task of bringing the pipeline<br />

through the centre of Durban and<br />

the surrounding suburbs for 26 km.<br />

The pipeline is due to become fully<br />

operational in the last quarter of<br />

2011.<br />

West Africa<br />

<strong>Oceaneering</strong> continues to be<br />

awarded key contracts offshore<br />

West Africa through a long running<br />

and successful relationship with<br />

Subsea7, formerly Acergy. In the<br />

past <strong>Oceaneering</strong> has successfully<br />

completed offshore pipe lay<br />

projects onboard Acergy Polaris for<br />

Total Exploration and Production<br />

Angola, (TEPA), in Block 17 and<br />

Pazflor fields, offshore Angola.<br />

The Pazflor project was a deep<br />

water ‘J’ lay project, a first for<br />

<strong>Oceaneering</strong> in West Africa and<br />

consisted of 8” and 10” lines<br />

inspected by the PipeWIZARD®<br />

Automated Ultrasonic Testing<br />

system.<br />

Block 17 was an offshore<br />

continuation for TEPA of their part<br />

of the Angola LNG near shore and<br />

onshore pipeline system.<br />

Projects completed and currently<br />

ongoing offshore Nigeria include<br />

the OSO RE pipeline replacement<br />

for Mobil Producing Nigeria<br />

Unlimited and the EGP3B Phase<br />

2 Pipelines for Chevron Nigeria<br />

Limited. We are also engaged with<br />

Subsea7 on OSO RE, EGP3B and<br />

ECIP platform hook-ups providing<br />

each full NDT services during<br />

platform installations.<br />

4<br />

www.oceaneering.com/inspection/<br />

www.oceaneering.com<br />

Papua New Guinea<br />

We have recently commenced<br />

work on a major onshore pipeline<br />

construction project in the jungles<br />

of Papua New Guinea that is<br />

supported from <strong>Oceaneering</strong>’s<br />

South East Asia office located<br />

in Batam, Indonesia The project<br />

consists of 500 km of various<br />

diametre lines ranging from 2” to<br />

36”. Services being performed<br />

are AUT (automated ultrasonics)<br />

on the front end with Omniscan<br />

PA (phased array) / ToFD (time of<br />

flight diffraction) and radiography<br />

on special fabrications such as<br />

road and river crossings. The<br />

project will last for around two<br />

years and will involve many difficult<br />

sections through awkward terrain<br />

where special consideration for<br />

working and moving personnel<br />

and equipment safely will be<br />

paramount.


THE <strong>INSPECTION</strong> <strong>STANDARD</strong><br />

At last, successful inspection of plastic pipes<br />

<strong>Oceaneering</strong> have concluded an exclusive licensing<br />

agreement for the application of microwave<br />

inspection technology, and can now offer these<br />

services to customers.<br />

Microwave technology provides a unique method<br />

for imaging the internal structure of non-metallic<br />

materials. The substantial growth in the use<br />

of such non-metallic materials in recent years<br />

has necessitated the need for new inspection<br />

technologies as most conventional non-destructive<br />

testing techniques were developed to examine<br />

metallic materials. Inspection applications are varied<br />

and include Glass Reinforced Plastic (GRP) pipes<br />

in power station cooling towers and wind turbine<br />

blades.<br />

<strong>Oceaneering</strong>’s initial focus is directed to the field<br />

joints applied to insulate subsea oil flow lines<br />

during assembly and to the welds in High-Density<br />

Polyethylene (HDPE) piping. In both applications<br />

the technology will provide an inspection technique<br />

that was previously unavailable. Both applications<br />

are related and involve the detection of a faulty<br />

bond between two pieces of plastic. To create the<br />

bonds, it is important that both sides are heated to<br />

ConocoPhillips, Teesside<br />

It has been celebrations all round<br />

for <strong>Oceaneering</strong> Inspection at<br />

ConocoPhillips Teesside crude<br />

oil reception facility as they<br />

exceeded 200,000 hours without<br />

any level of recordable accident<br />

or injury.<br />

Dave Close, <strong>Oceaneering</strong> Site<br />

Manager said “This is a fantastic<br />

achievement running from the<br />

start of the contract in April 2007<br />

to present day and is the result<br />

of the excellent safety awareness<br />

and behavioural attitude of the full<br />

team.”<br />

There has been a significant<br />

increase in workload over the<br />

period which has resulted in<br />

the manning levels more than<br />

doubling, but this has in no<br />

way affected the group’s safety<br />

performance.<br />

Mike Rae, the recently appointed<br />

HSEQ Manager at ConocoPhillips<br />

congratulated the group with the<br />

encouraging words “<strong>Oceaneering</strong><br />

are setting the standards on site<br />

with regards to safety and are<br />

achieving a level of performance<br />

that others should aspire to”<br />

The praise did not stop there,<br />

as ConocoPhillips Operation<br />

Support Manager Lee Murray<br />

added “<strong>Oceaneering</strong> are<br />

consistently surpassing on-site<br />

safety goals and initiatives”.<br />

Eric Johnston, Vice President of<br />

<strong>Oceaneering</strong> Inspection added<br />

his congratulations stating, “These<br />

things don’t happen by accident,<br />

but by hard work and attention to<br />

the details”.<br />

Whilst it is recognised by all that<br />

<strong>Oceaneering</strong>’s safety performance<br />

is a truly team effort Dave’s<br />

leadership qualities have been<br />

recognised by <strong>Oceaneering</strong> who<br />

5<br />

the correct temperature - too cold and the molecules<br />

in the plastic will not join together; too hot and<br />

the molecules oxidize and will not join together.<br />

In both cases, there is no gap, reflector or other<br />

physical feature that can be detected by ultrasound<br />

or radiography, only a change in the microstructure.<br />

The new technology can detect this change and so<br />

provide us with an effective detection tool.<br />

A specific application that everyone is familiar with<br />

is in respect of the miles of bright yellow pipe being<br />

installed to carry natural gas to millions of homes.<br />

This technology is the only one that can provide<br />

an inspection that covers all of the known failure<br />

mechanisms for the welds between sections.<br />

recently presented him with a HSE<br />

award for displaying outstanding<br />

leadership and significant<br />

contributions to the improvement<br />

of our safety culture.<br />

It is the continued hard work<br />

and inspiring attitude that is<br />

shared amongst the group which<br />

has resulted in this fantastic<br />

achievement. Keep up the good<br />

work!<br />

John Watkinson Vice President (left)<br />

presents Dave Close with his award


www.oceaneering.com/inspection/<br />

www.oceaneering.com<br />

‘One <strong>Oceaneering</strong>’ at 2011 OTC Houston<br />

The many business units of <strong>Oceaneering</strong> International recently came together at the 2011 Offshore<br />

Technology Conference (OTC) held in Houston, Texas from 2nd to 5th May. A 29-year attendance record of<br />

78,150 was set with 40 countries represented among the 2,520 exhibiting companies from the major oil<br />

producing areas of the world.<br />

Sales personnel from all <strong>Oceaneering</strong> businesses met key customers, vendors and old friends in a well<br />

received and pleasant atmosphere suited to the conference’s intended technology exchange. Planning for<br />

2012 OTC has begun with technical paper abstracts due in September 2011 and dates of 30th April to 3rd<br />

May reserved at Reliant Park venue.<br />

Technology<br />

exhibition at Tata<br />

South Wales<br />

Tata Steel Strip Products UK (formerly<br />

CORUS) recently held a technology<br />

exhibition at its Port Talbot Works,<br />

South Wales. The company makes<br />

hot rolled, cold rolled and metallic<br />

coated strip steel. <strong>Oceaneering</strong> were<br />

invited along with a number of other<br />

key suppliers to demonstrate new<br />

technology available to industry.<br />

Tata Senior Plant Condition<br />

Monitoring Engineer Jason Chard<br />

(far right) is shown Guided Wave<br />

technology by Craig Nutty, Assistant<br />

SIS Manager. John Staff, Swansea<br />

Branch Manager (far left) and Richard<br />

Lobb, RA Manager England and<br />

Wales watch on.<br />

Australasian Oil and<br />

Gas exhibition<br />

As announced in the February 2011 edition of the newsletter<br />

<strong>Oceaneering</strong> have acquired the Global Technical Services<br />

Group based in Perth, Western Australia. The acquisition gives<br />

the Inspection Division a foothold into an exciting and rapidly<br />

expanding new geographical sector.<br />

To announce our arrival in the Australian market we joined<br />

forces with other <strong>Oceaneering</strong> business units to exhibit at<br />

the 2011 Australasian Oil and Gas (AOG) exhibition and<br />

conference. AOG attracts 10,000 visitors with more than<br />

450 exhibitors. The exhibition was the perfect opportunity<br />

for <strong>Oceaneering</strong> to showcase its latest products and services<br />

over three days to influential local interstate and international<br />

visitors.<br />

The Inspection team at the exhibition from left to right are<br />

Dave Bentley - Advanced NDT Applications Manager, Haroon<br />

Cajee - Manager-Asia Pacific, Eric Johnston - Vice President<br />

<strong>Oceaneering</strong> Inspection, Martin Hockley - Marketing Manager<br />

and Dave Ryan - Operations Manager.<br />

Visitors to the <strong>Oceaneering</strong> stand were shown the latest<br />

Phased Array technology and recent developments with 3D<br />

imaging by the ROV Division.<br />

6


THE <strong>INSPECTION</strong> <strong>STANDARD</strong><br />

Nuclear Stations<br />

vessel entry training<br />

A team of 20 <strong>Oceaneering</strong> technicians led by Chris<br />

Smith, NDT Inspection Engineer, have once again<br />

undergone training on boiler simulators located in<br />

Newcastle, England in preparation for completing<br />

inspection work in the most testing of conditions<br />

- boilers in close proximity to the reactor core on<br />

nuclear installations. This work has proved vital to<br />

the efficiency of the boilers in the past although the<br />

conditions encountered could not get much more<br />

challenging.<br />

Due to the heat and potential contamination in the<br />

boilers the inspectors wear air-fed suits and have<br />

to manoeuvre through a complex set of boiler<br />

tubes to get in the correct position to complete the<br />

testing. To apply the ALARP (As Low As Reasonably<br />

Practicable) principle requires practise in safe<br />

conditions. For this reason simulators create the<br />

conditions and work scopes are developed to<br />

allow the inspectors to become acclimatised and<br />

confident in the simulated conditions within a<br />

safe environment before the actual site work is<br />

performed. The inspectors are monitored by video<br />

and radio communications from a manned control<br />

room while completeing the tasks, while keeping<br />

the number of personnel allowed into the hazardous<br />

conditions to a minimum.<br />

Over the past years a vast amount of successful<br />

inspections have been completed on the boilers<br />

due to the diligent attitude of the inspectors and the<br />

professional training completed.<br />

7<br />

Eggborough Power<br />

Station safety award<br />

<strong>Oceaneering</strong> personnel are renowned for<br />

their vigilance and an eye for detail and this<br />

was proved again when a team of technicians<br />

identified a defect with the potential to cause a<br />

significant safety issue.<br />

During the 2011 shutdown, Dale Sutcliffe,<br />

Gary Cook and Carl McElvaney formed the<br />

<strong>Oceaneering</strong> inspection team tasked with carrying<br />

out a routine inspection of a high pressure<br />

pipework bend on Unit 3 Eggborough Power<br />

Station. The coal fired station has been generating<br />

electricity since 1967 and is located in East<br />

Yorkshire, England.<br />

Members of the team noticed a crack propagating<br />

from a ‘tapping point’ branch weld to an adjacent<br />

‘warming’ branch weld. The defect was in an<br />

area outside the area scheduled for inspection.<br />

Nevertheless the alert team immediately reported<br />

to the Station Engineer, an action which resulted in<br />

a change to the inspection scope for this and other<br />

station units.<br />

In recognition of their diligence the three men<br />

were proposed for a Safety Award which<br />

was presented to them by Paul Tomlinson, the<br />

Power Station’s Chief Operating Officer on the<br />

14th of June. <strong>Oceaneering</strong> also recognised<br />

this conscientious approach, by presenting<br />

each individual with a monetary voucher and<br />

expressing great thanks to all involved.<br />

Carl McElvaney - Left Gary Cook - Left


A view from the Caspian<br />

<strong>Oceaneering</strong> Inspection has contracts all over the<br />

world in often difficult, but occasionally exotic<br />

locations. Dr. Peter McClean Millar In-country<br />

Manager for <strong>Oceaneering</strong> works in one of the fastest<br />

growing areas of our business and offers insight into<br />

life working in the Caspian Region.<br />

“When people ask me where I work they usually take<br />

on a puzzled look and scratch their head when I say,<br />

‘Baku, Azerbaijan’. In recent weeks Azerbaijan won<br />

the European Song Contest so friends and family back<br />

in Ireland probably won’t be so confused, but for my<br />

American friends back in Chicago, where I live, it will<br />

still be, go to Iran and Iraq and head north to Russia<br />

and you will find it”.<br />

Azerbaijan is a former Russian state which sits on the<br />

western side of the Caspian Sea. It has roughly the<br />

same land area as Ireland with a total population of<br />

just over eight million of which more than two million<br />

live in Baku, the capital city. Like many large cities,<br />

Baku is noisy and confined; however, the Azerbaijan<br />

government is committed to modernising the city and<br />

opening up the tourism sector. They are able to do<br />

this because of the vast oil wealth buried under the<br />

Caspian Sea. It is because of this that <strong>Oceaneering</strong> is<br />

here.<br />

In 2009 <strong>Oceaneering</strong> secured the Inspection and<br />

Integrity Management contract for BP’s assets in<br />

the Caspian Region. These assets consist of eight<br />

offshore platforms, the Sangachal terminal and the<br />

export pipelines. Covering an area of 500 hectares,<br />

Sangachal has a processing capacity of over one<br />

million barrels per day and a total storage capacity<br />

of three million barrels of oil. It is one of the largest oil<br />

and gas facilities in the world.<br />

The oil is exported through three major lines running<br />

through Azerbaijan, Georgia and Turkey to the<br />

Mediterranean and Black Seas. The three pipelines<br />

include the Baku-Tiblisi-Ceyhan line which at 1,094<br />

miles is the second longest oil pipeline in the world<br />

and runs through mountainous areas which are only<br />

accessible for inspection seven months of the year.<br />

The Caspian operation forms part of <strong>Oceaneering</strong><br />

Inspection’s Africa, Middle East, FSU and Asia<br />

Pacific (AMFA) Region, which has its management<br />

team based in Dubai, United Arab Emirates, but is<br />

supported by our specialist services from the United<br />

Kingdom.<br />

During the last two years we have seen continuous<br />

growth in the work being done with and the size of<br />

the workforce. We are also working closely with BP<br />

8<br />

www.oceaneering.com/inspection/<br />

www.oceaneering.com<br />

on a number of new projects including the Chirag<br />

Oil Project (new platform 120km east of Baku) and<br />

the pilot of an inspection regime at Sangachal using<br />

3D models. This is a truly exciting project which has<br />

the potential to be a real game changer in the field<br />

of inspection and monitoring of onshore and offshore<br />

assets.<br />

But it is not all work in Baku. Recently we had a team<br />

building weekend at the Atlant resort in Nabran in the<br />

northern part of Azerbaijan. While the area around<br />

Baku tends to be a dry and dusty terrain, Nabran was<br />

very reminiscent of Normandy in France. It was great<br />

to see a different aspect of Azerbaijan and spend<br />

some quality time with the families of our local staff.<br />

The Caspian Integrity Management operation employs<br />

over 100 people of which in excess of 30 are<br />

Azerbaijan nationals. The following image shows the<br />

Management Team, (from left to right) Peter McClean<br />

Millar - In Country Manager, Lawrence Slowik –<br />

Exports Delivery Manager, Ali Still – NDT Inspection<br />

– Coordinator , Gavin McConaghie – HSE Advisor,<br />

Derek McNaughtan – Offshore Delivery Manager,<br />

Adriaan Volschenk – NDT Rope Access Supervisor.<br />

(Missing from photograph: Tim Preston – Sangachal<br />

Delivery Manager and Babek Tahirov – Chief<br />

Representative).<br />

Caspian Management Team<br />

Working in the Caspian is demanding but it is also<br />

rewarding because everyone knows that they can<br />

make a difference by endeavouring to keep BP’s<br />

operation here safe and efficient. Recently we passed<br />

250,000 hours without a Lost Time Incident. People<br />

may not know where Baku is but it is certainly a very<br />

important part of <strong>Oceaneering</strong>’s global operation.<br />

Dr. Peter McClean Millar – June 2011


THE <strong>INSPECTION</strong> <strong>STANDARD</strong><br />

Advanced inspection technology in the Swiss mountains<br />

The ever increasing demand for <strong>Oceaneering</strong>’s<br />

Specialist Inspection Services recently provided the<br />

opportunity to complete an inspection campaign<br />

within the Swiss mountains.<br />

On the Dixence River at the head of the alpine valley<br />

Val d’Hérens, stands the concrete gravity dam Le<br />

Grand Dixence. At 285 metres (935 ft) high, it is<br />

the tallest gravity dam in the world and is part of the<br />

Cleuson-Dixence complex.<br />

This colossus structure provides water for four<br />

hydroelectricity stations, including the Fionnay<br />

power plant which generates a combined maximum<br />

capacity of 290 MW over its six turbines.<br />

In order to turbine the water from Le Grand Dixence<br />

dam, it was necessary to build and install a nine<br />

kilometre long underground gallery, including a<br />

large section running from Louvie to Fionnay.<br />

This particular project relates to installations of the<br />

central water stations of Fionnay (in Fionnay) and<br />

Nendaz (in Riddes). The pipelines have been divided<br />

into nine distinct lots and an extensive maintenance<br />

program is to be held over the next three years to<br />

help improve the in-service life of the lines.<br />

The main purpose of the operation was to re-instate<br />

the anti-corrosive coating that lines the inside of the<br />

pipework. However, before the coating was to be<br />

re-applied, it was a requirement to non-destructively<br />

test the welded joints to identify potential in-service<br />

defects.<br />

Due to the restriction to test from one side only<br />

and the requirement for fully recordable data, the<br />

client had specifically requested Phased Array (PA)<br />

ultrasonics as the primary method of inspection. PA<br />

ultrasonics has the benefit of volumetrically inspecting<br />

the weld at an approximate scan speed of 75mm/<br />

second. All PA ultrasonics information is recordable<br />

which allows for off-site analysis and provides fully<br />

auditable data.<br />

9<br />

The inspection campaign (that required site access<br />

by a mountain climbing cable car) was led by<br />

Stuart Kenny, Principal Engineer and proved to be<br />

extremely challenging. The second member of the<br />

team Principal Technician, Huw Lewis describing the<br />

works as “the most demanding environment I have<br />

ever worked in”.<br />

Huw Lewis looks a little nervous as he travels to<br />

work in the mountain cable car.<br />

After gaining access to the pipe entry point both SIS<br />

engineers descended down the pipeline aboard a<br />

cable driven cart. The cart was controlled by two<br />

local operators who spoke as much English as the<br />

Oceaneers spoke French….very little.<br />

The pipeline was limited to three metres in diameter<br />

and as the light of the pipe entrance quickly<br />

disappeared, the only source of illumination was<br />

provided by a battery operated torch. In addition to<br />

the limited light source, as the cable cart travelled<br />

towards its 1500 metre drop, the temperature began<br />

to fall dramatically. These conditions were extremely<br />

testing and both operators had to remain vigilant<br />

to ensure the <strong>Oceaneering</strong> high standards of safety<br />

were adhered to.<br />

The primary survey included testing 19 selected<br />

weld sections of approximately two metres in<br />

length. The welds were approximately 50 years old<br />

and due to the age many fabrication indications<br />

were anticipated. The sentencing was based on<br />

requirements shown in BS EN 7910:2005, which<br />

outlines the acceptance limits for flaws in metallic<br />

structures.<br />

The campaign included entry into pipe sections of<br />

diameters of less than 1.5 metres. In-service defects<br />

had been detected visually. PA ultrasonics was<br />

used to quantify the damage under the surface. The<br />

inspection involved crawling 40 metres along the<br />

pipe to access the defective areas.


The whole campaign proved to be a success with<br />

the client providing extremely positive feedback<br />

following report submittal. This puts <strong>Oceaneering</strong><br />

in a strong position to be involved in the remaining<br />

maintenance works that continue into 2013.<br />

In Angola<br />

Congratulations to Lemuel Abela who has<br />

recently received a safety award for submitting<br />

the ‘best quality’, safety observation card. The<br />

award was presented by <strong>Oceaneering</strong>’s client<br />

Sonamet, during a morning’s site ‘Toolbox<br />

Talk’ for his contribution to Sonatmet’s safety<br />

observation programme. Sonamet Construction<br />

Manager Kirsten Glesne is seen presenting the<br />

award.<br />

Lemuel is employed by <strong>Oceaneering</strong> as an NDT<br />

technician on the Congo River Crossing currently<br />

under construction in Angola. The Congo River<br />

Crossing is an enabling project for the Angola<br />

LNG project in the Southern Africa Business Unit<br />

and involves the installation of a gas supply<br />

pipeline from Block 0/14 to the Angola LNG<br />

Plant, requiring the crossing of the technically<br />

challenging Congo River subsea canyon.<br />

10<br />

www.oceaneering.com/inspection/<br />

www.oceaneering.com<br />

After the exertions of the inspection activities there<br />

was the welcome opportunity to take in the sites<br />

of Switzerland including an amazing mountain<br />

bike ride around the surrounding mountains of the<br />

popular ski resort of Verbier. Maybe NDT isn’t all<br />

bad after all…<br />

Apprentice scheme introduced in Angola<br />

<strong>Oceaneering</strong> Inspection Angola has introduced<br />

an apprenticeship scheme to formalise the<br />

training program that will assist with the<br />

development of local people. The scheme<br />

has been designed to give trainees the<br />

comprehensive training required to becoming<br />

<strong>Oceaneering</strong> Inspection technicians of the future.<br />

Angolan operations will fill eight trainee<br />

positions in 2011, two of which have already<br />

been identified and employed. The additional<br />

trainees will be recruited from local universities<br />

and colleges with <strong>Oceaneering</strong> attending<br />

recruitment events to ensure the highest calibre<br />

people are given the opportunity to enter an<br />

exciting career with a respected organisation.<br />

The scheme involves a combination of on-site<br />

and formal training at our AMFA training school<br />

in Abu Dhabi, UAE. The training is designed to<br />

ensure the trainees achieve their full potential<br />

and formal qualifications by internationally<br />

recognised certification schemes.<br />

It is the intention that the scheme will offer the<br />

opportunity to local people on a continuous<br />

basis with around six new places offered each<br />

year.


THE <strong>INSPECTION</strong> <strong>STANDARD</strong><br />

Long Service Awards<br />

The Swansea, South Wales office recently had reason for a<br />

joint celebration. David (‘Dai’) Hughes reached the remarkable<br />

milestone of 45 years continuous service ‘not out’. Congratulations<br />

Dai, you must have been a mere boy when you started. Carole<br />

Hollingworth, the young looking one in the picture, reached the<br />

30 years milestone (Surely not?).<br />

From left to right: John Staff, Dai, Carole and Alan Parker<br />

45 years<br />

Dai Hughes<br />

15 years<br />

30 years<br />

Steven Chessell, Carole Hollingworth,<br />

Nigel Jones, Derek Bromby<br />

Derek Marriott, Richard Greenslade,<br />

Paul Evans, Paul Dutton, John Boyle,<br />

Darren Owen, Kenneth Matheson, Alan<br />

Jackson, John Robson, Richard Denmead,<br />

Derek Skelton, Sarbini Karim<br />

5 years<br />

10 years<br />

20 years<br />

David Gunn, Ian Morgan, Melchor Mabutas, John Scannell,<br />

David Dallard, Alan Blackburn, Brian Lornie<br />

Monzar Najami,Bruce Jurgens, Stewart Hepburn, Sharon Paterson,<br />

Simeon Marasigan, Paul Hood, Richard Harris, Thomas Ballesteros, David<br />

McKinven, Jill Good, James Foley, Philip Espejo, James Murphy, Simon<br />

Mason, John Cockburn, Lee Balfour, Coy PoPay, Katherine Broussard,<br />

Jason Hebert, Wesley Montgomery, Jason Shevlin<br />

Scott MacKenzie, Alfie Gardner, Brian Campbell, Jennifer Gallighan,Sarah Jane McCoubrey, Mark Torres, Ashley<br />

Burgess, Gareth Evans, Widya Indrajaya, Joseph Kwiatkowski, Lionel Hadley, Taylor Foret, Joshua Meza, Shervin Fox,<br />

Amanda Orrick, Ford Innes, Paul Newstead, Stuart Gallacher, Alistair Bakie,Peter Smith, Paul Lafferty, Maria Barata,<br />

Gareth Steele, Andrew Hughes, Julie Bushby, Ken Walker, Robert Evans, John Quinn, Raghunathan Venkataraman, Roy<br />

Winter, John Bender, Johannes Briedenhann, Abraham Panman, David Davidson, Alasdair Smith, Michelle Morgan,<br />

Chad Harding, Pritvish Francis, Pallathukudy Shaju, David Harris, Pallathukudy Shaju, David Harris, Genevieve Davis,<br />

Andrew Wilson, Hin Fai Shek, Louise Freeman, Clyde Botha, Simon Bradley, John Smith, Russell Edwards, James<br />

McCluskey, William McGrane, Ian Blackburn, Gareth Mugford, Babek Tahirov, Barry McCulloch<br />

Americas:<br />

Station #1 Box 10267<br />

227 Clendenning Road<br />

Houma,<br />

LA 70363,<br />

USA<br />

Tel: +1 985 868 5097<br />

Fax: +1 985 868 4871<br />

Angola:<br />

Rua Kima Kyenda 309<br />

Boavista,<br />

Lunda,<br />

Angola<br />

Tel: +244 2311 367<br />

+244 2311 071<br />

Fax: +244 2310 082<br />

Asia Pacific:<br />

No1 Kwong Min Road,<br />

Jurong 628704<br />

Singapore<br />

Tel: +65 62613211<br />

Australia:<br />

Perth Office,<br />

12 McKinnon Street,<br />

Jandakot,<br />

WA 6164<br />

Tel: (+66) 8 9414 9122<br />

Fax: (+61) 9 9414 9133<br />

England and Wales:<br />

109 Bowesfield Lane,<br />

Stockton-on-Tees,<br />

Cleveland,<br />

TS18 3YH,<br />

UK<br />

Tel: +44 (0) 1642 604661<br />

Fax: +44 (0) 1642 670300<br />

Middle East:<br />

PO Box 4074,<br />

Abu Dhabi,<br />

United Arab Emirates<br />

Tel: +9712 5555 855<br />

Fax: +9712 5552 392<br />

PO Box 115215<br />

Al Moosa Tower 2, Floor<br />

15,<br />

Sheikh Zayed Road,<br />

Dubai<br />

United Arab Emirates<br />

Tel: +971 43117500<br />

Fax: +971 43310800<br />

Statements in this newsletter that express belief, expectation or intention, as well as those that are no historical fact, are forward looking. The forward-looking statements include the<br />

statements concerning <strong>Oceaneering</strong>’s expected contract revenue and anticipation average annual revenue. These forward-looking statements are made pursuant to the safe harbor<br />

provisions of the Private Securities Litigation Reform Act of 1995 and are based on current information and expectations of <strong>Oceaneering</strong> that involve a number of risks, uncertainties, and<br />

assumptions. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: industry<br />

conditions; prices of crude oil and natural gas; <strong>Oceaneering</strong>’s ability to obtain and the timing of new projects; and changes in competitive factors. Should one or more of these risks or<br />

uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. These and other<br />

risks are more fully described in <strong>Oceaneering</strong>’s latest annual report on Form 10-K and is other periodic filings with the Securities and Exchange Commission.<br />

11<br />

Nigeria:<br />

216 Port Harcourt-Aba Road,<br />

Opposte Shell Residential<br />

Area,<br />

Port Harcourt,<br />

Rivers State,<br />

Nigeria<br />

Tel: +234 846 10070<br />

Fax: +234 846 10070<br />

Scotland:<br />

Pitmedden Road,<br />

Dyce,<br />

Aberdeen,<br />

AB21 0DP,<br />

UK<br />

Tel: +44 (0) 1224 758500<br />

Fax: +44 (0) 1224 758519<br />

For enquires contact either your local office<br />

or inspection@oceaneering.com

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