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3part of <strong>Aker</strong>Positionedto perform<strong>Aker</strong> <strong>Solutions</strong> provided design, eng<strong>in</strong>eer<strong>in</strong>gand procurement of a key gas dehydration unitto Hyundai Heavy Industries, for Adma Opco’ssupercomplex at the Umm Shaif field off AbuDhabi. The field, and Hyundai Heavy’s contract,are among the world’s largest of their k<strong>in</strong>d.<strong>Aker</strong> <strong>Solutions</strong> was on the spot, coord<strong>in</strong>at<strong>in</strong>gwork by a fabricator near the yard and ensur<strong>in</strong>ga successful delivery, on-time and on-spec.By Ryan Sk<strong>in</strong>ner


2“Their ability to coord<strong>in</strong>ate and follow-upfabrication here <strong>in</strong> Korea was critical.” HHIFor large projects like the Umm Shaifdelivery, <strong>Aker</strong> <strong>Solutions</strong> and HyundaiHeavy Industries had to address risksconstantly throughout the project. For<strong>Aker</strong> <strong>Solutions</strong>, this meant work<strong>in</strong>gclosely with both Adma Opco and HHI dur<strong>in</strong>gdesign def<strong>in</strong>ition, focus<strong>in</strong>g hard on procurementand manag<strong>in</strong>g its fabricators’ work <strong>in</strong> Korea verycarefully, with a permanent on-site presence andregular meet<strong>in</strong>gs. For HHI, it meant choos<strong>in</strong>gpartners with high project management capacity, arigorous focus on production schedules andcareful vendor selection. With successful deliveryof the large Umm Shaif process platforms, bothHHI and <strong>Aker</strong> <strong>Solutions</strong> ga<strong>in</strong> a powerful referencefor future contracts <strong>in</strong> the Middle East region andon large, complicated <strong>in</strong>stallations.“This was a huge contract, for us and HyundaiHeavy Industries. Their scope was over USD 1billion, and we were work<strong>in</strong>g closely with themdur<strong>in</strong>g the bidd<strong>in</strong>g with Adma Operat<strong>in</strong>gCompany,” said Lionel Wa<strong>in</strong>traub, the executivevice president of <strong>Aker</strong> <strong>Solutions</strong>’ process systemsunit <strong>in</strong> France, who led the negotiation process.The Umm Shaif field is a giant oil and gas field(capable of as much as 600 000 barrels of oil perday), and has been produc<strong>in</strong>g s<strong>in</strong>ce 1962. Gas hasbeen produced from the field s<strong>in</strong>ce the early 80s,and, recently, field owners Adma Opco [AdmaOperat<strong>in</strong>g Company] chose to boost the field’sgas production and <strong>in</strong>jection capacity. In order toavoid <strong>in</strong>terconnection issues between the threeplatforms needed, Adma Opco sought onecompany that could undertake the whole projectHyundai Heavy Industries [HHI] won the fullcontract for eng<strong>in</strong>eer<strong>in</strong>g, procurement andconstruction of Adma Opco’s three new UmmShaif platforms for collection and separation, gascompression and accommodation. This was thefirst project awarded by the United Arab Emiratesentirely to a foreign company, and signified amajor step for HHI as a turnkey supplier of suchlarge and complex systems.The Gas Dehydration unit consists of a high pressure absorber and a glycol regeneration packagesplit <strong>in</strong>to three skids. This image shows one of the three skids hous<strong>in</strong>g the reboiler unit andassociated items.“This is just an enormous project, and demands alarge amount of skilled manpower and complexeng<strong>in</strong>eer<strong>in</strong>g. Among other th<strong>in</strong>gs, the field’s highsulphur gas content meant that all materials needto be wholly <strong>in</strong>conel, an alloy of chrome, iron andnickel. It resists corrosion, but it’s probably tentimes more expensive than more conventionalmaterials,” said DH Jung, the deputy generalmanager <strong>in</strong> HHI’s offshore purchas<strong>in</strong>g departmentresponsible for all procurement on the Umm Shaifproject.HHI signed the contract with <strong>Aker</strong> <strong>Solutions</strong> <strong>in</strong>2007 for the eng<strong>in</strong>eer<strong>in</strong>g and supply of threealmost wholly <strong>in</strong>conel skids that, once assembled,would make up a 2 000 tonne gas dehydrationand compression unit. Jung added: “We had to bevery selective choos<strong>in</strong>g partners on this project.Technical capability, project management, f<strong>in</strong>ancialstrength and a competitive bid were all strongfactors <strong>in</strong> our decision. <strong>Aker</strong> <strong>Solutions</strong>demonstrated its ability to do all of this. They did agreat job. Any delay <strong>in</strong> procurement or productionwould have been disastrous, and <strong>Aker</strong> <strong>Solutions</strong>’timely and accurate eng<strong>in</strong>eer<strong>in</strong>g and supply keptthe project on track. Their ability to coord<strong>in</strong>ate andfollow up fabrication here <strong>in</strong> Korea was critical.”L<strong>in</strong>k<strong>in</strong>g eng<strong>in</strong>eers <strong>in</strong> France with builders <strong>in</strong>KoreaThough HHI has a long record supply<strong>in</strong>g complexoffshore deliveries (it is a world leader <strong>in</strong> FPSOconstruction, for example), this contract’s size andcomplexity brought special demands. Further, HHIand <strong>Aker</strong> <strong>Solutions</strong> had co-operated many timesbefore, but this project would require a new levelof co-operation and coord<strong>in</strong>ation.Because of the tremendous weight of the three<strong>in</strong>conel skids (flash separation, surge drum andgas compression), HHI requested that they befabricated locally. Otherwise, it would add a thornytransportation issue to an already complex project.“<strong>Aker</strong> <strong>Solutions</strong> has worked on numerous projectswith HHI and other Korean yards before, but thiswas different. We would have to make a large andcomplicated delivery, work<strong>in</strong>g with an unfamiliarfabricator and co-operat<strong>in</strong>g across cont<strong>in</strong>ents andlanguages. It was a challenge, but I th<strong>in</strong>k wemanaged it well,” said Wa<strong>in</strong>traub.<strong>Aker</strong> <strong>Solutions</strong> selected Sung J<strong>in</strong> Geotec toundertake fabrication of the gas dehydrationskids. HHI had <strong>in</strong>troduced the two companies;Sung J<strong>in</strong> is immediately adjacent to HHI’s yardand had supplied it frequently on large offshoreprojects. <strong>Aker</strong> <strong>Solutions</strong> knew the fabricator tohave previously supplied French energy majorTotal, one of <strong>Aker</strong> <strong>Solutions</strong>’ long-stand<strong>in</strong>gpartners.To help coord<strong>in</strong>ate the work done by eng<strong>in</strong>eers <strong>in</strong>France and the client and fabrication yard <strong>in</strong>Korea, <strong>Aker</strong> <strong>Solutions</strong> brought <strong>in</strong> a key asset with©2010 <strong>Aker</strong> <strong>Solutions</strong>. All rights reserved. www.akersolutions.com


3“Any delay <strong>in</strong> procurement or productionwould have been disastrous, <strong>Aker</strong> <strong>Solutions</strong>’timely and accurate eng<strong>in</strong>eer<strong>in</strong>g and supplykept the project on track.” HHIexperience <strong>in</strong> both countries. Hannah Lim startedher work on the Umm Shaif project <strong>in</strong> France,where she was a document controller and projectassistant <strong>in</strong> the eng<strong>in</strong>eer<strong>in</strong>g phase. Onceprocurement and fabrication began, she was onsite <strong>in</strong> Korea to facilitate communication andensure the fabrication complied with draw<strong>in</strong>gs andrequirements. Lim’s presence on-site enabled aflexible work schedule and expedited the deliverytime. “Technically, Sung J<strong>in</strong> had plenty ofexperience. But they had little experience work<strong>in</strong>gfor foreign clients. My role was simply to expediteunderstand<strong>in</strong>g and thus avoid any unnecessaryproblems,” said Lim.In addition to Lim, <strong>Aker</strong> <strong>Solutions</strong>’ project managerPhilippe Thomas made monthly trips to Korea tovisit HHI and Sung J<strong>in</strong>, and an <strong>Aker</strong> <strong>Solutions</strong>package eng<strong>in</strong>eer was on-site throughout much ofthe project to assist <strong>in</strong> procurement and thedetailed design.A contract under pressure“Nobody really expected us to be able to deliverthis on time,” said Jung. “And with a delivery time<strong>in</strong> May, miss<strong>in</strong>g the deadl<strong>in</strong>e by just a few weekswould mean a delay of many months, with Korea’smonsoon go<strong>in</strong>g from June to October.“Part of the reason no one thought we could dothis was the high <strong>in</strong>conel content of the packages.Another was the demand<strong>in</strong>g nature of the client.This whole project meant a great amount of risktak<strong>in</strong>gfrom HHI. But we knew what we weredo<strong>in</strong>g, and we’ve been able to move fast with lotsof technical manpower and good decisions.”Jung describes how HHI grabbed the EPCcontract from Adma Opco and ran with it. As soonas Worley <strong>in</strong> Kuala Lumpur was done with theFEED (Front End Eng<strong>in</strong>eer<strong>in</strong>g and Design), HHItook the draw<strong>in</strong>gs and started its execution. “Wejust couldn’t wait for them,” said Jung.helped us to make this successful delivery.”Commission<strong>in</strong>gHHI’s platforms were completed on time <strong>in</strong> 2009,and are currently on location <strong>in</strong> the Arabian Gulfundergo<strong>in</strong>g f<strong>in</strong>al commission<strong>in</strong>g. The gas facilitieswill be on stream by March, accord<strong>in</strong>g to plan,with an expected production of 1 billion cubic feetof gas per day go<strong>in</strong>g to Das Island for LNGproduction shortly thereafter.“This was a key delivery for us, and – bydemonstrat<strong>in</strong>g our ability to comb<strong>in</strong>e eng<strong>in</strong>eer<strong>in</strong>g<strong>in</strong> France with fabrication <strong>in</strong> Korea – we haveearned the possibility of participat<strong>in</strong>g <strong>in</strong> many newprojects. Korean yards like HHI are demonstrat<strong>in</strong>gtheir ability to deliver very large and complex turnkeysystems to new markets, like the Arabian Gulf.We’ll be stay<strong>in</strong>g close to them,” said ChantalRigaill, Manag<strong>in</strong>g Director of <strong>Aker</strong> <strong>Solutions</strong>’process systems company <strong>in</strong> France.Gas dehydration systems are designed toremove dissolved water from wet saturated gasand meet dew po<strong>in</strong>t specifications to 1ppm.Employees coord<strong>in</strong>ated across cont<strong>in</strong>ents and languages for the timely delivery of the Umm Shaifproject.The reason for Jung’s and HHI’s haste was downto the market pressures of 2007. This was themidst of an oil and gas contract<strong>in</strong>g boom, and rawmaterial prices were high and ris<strong>in</strong>g, with greatfluctuation. HHI would need to completeeng<strong>in</strong>eer<strong>in</strong>g and make purchase orders as quicklyas possible. “The difference between order<strong>in</strong>g anitem before December 2007 and after could meana difference <strong>in</strong> delivery time of 22 weeks, and awild price hike,” he said.Said Lionel Wa<strong>in</strong>traub: “The price for thesesophisticated metals was chang<strong>in</strong>g basically everyday. We had to focus when mak<strong>in</strong>g orders to writevery good contracts that would mitigate our risk toprice fluctuations. This we managed, and, with theend client’s clear specifications, we were able toprocure all of the materials quickly and with littleerror.”OG Kim, mechanical lead eng<strong>in</strong>eer for HHI on thisproject, was impressed: “This project required atremendous amount of eng<strong>in</strong>eer<strong>in</strong>g capacity, and<strong>Aker</strong> <strong>Solutions</strong> gave us their full capability. They©2010 <strong>Aker</strong> <strong>Solutions</strong>. All rights reserved. www.akersolutions.com

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