No.1-2013 BD 1 PROJECT A TWO-YEAR MARATHON JOURNEY Page 6 HAI SU TRANG / HAI SU DEN PROJECT ACHIEVED 1,000,000 MANHOURS WITHOUT ANY LOST TIME INCIDENTS Page 8 SU TU TRANG PROJECT OBTAINED ITS FIRST GAS AHEAD OF SCHEDULE Page 9 PTSC M&C- TOP 500 LARGEST VIETNAM ENTERPRISES Page 15
The Bien Dong 1 (BD1) Project is an EPCI turnkey project awarded to PTSC M&C by Bien Dong Petroleum Operating Company (Bien Dong POC). This is the first and greatest offshore project ever performed by a Vietnamese local contractor, opening up new horizons for the Vietnam oil & gas industry in the future especially at the water depth of over 133 meters.
05 MANAGEMENT MESSAGE 6BD1 Project A two-year marathon journey 8 HST/HSD Project achieved 1,000,000 manhours without any lost time incidents 9 Su Tu Trang Project obtained its First Gas ahead of schedule 10 Upgrading RongDoi Booster Compressor Left to right: Mr. Tran Minh Tam- Deputy Director; Mr. Tran Thien Le - Deputy Director; Mr. Nguyen Quang Hieu - Deputy Director; Mr. Dong Xuan Thang - Director; Mr. Bui Hoang Diep - Deputy Director; Mr. Tran Duc Thang - Deputy Director Dear Readers, 2012 is the year of Dragon which is traditionally characterized by luck, strength and prosperity. However as it turns out, 2012 is a tumultuous year to Vietnam s economy: the property market was frozen, stock prices dipped sharply to some of the lowest levels ever and the banking industry experienced unexpected turbulence. The future is indeed never certain. If there is any lesson learned from these difficult time, we believe it is a realization that quick money does not last and longterm successes do require skill, hard work and resilience even though lucks certainly have some says. At PTSC M&C, 2012 is the year full of events to us: we were negatively affected by the economic slow-down; the delay of few of our important forecasted projects forced us to downsize our workforce, an unforgettable and painful experience to our management and employees. On the bright side, the solid foundation in terms of experience and competency built through years of hard-work and dedication has helped us navigate through the rough water. In 2012 we successfully offshore installed and handed over three strategically important projects to our clients, among them is the prestigious and national Bien Dong 1 Central Processing Platform. Financially in 2012 we recorded the highest revenue and profit figures since the company was founded and PTSC M&C was ranked 67th amongst 500 largest enterprises, up 38 positions compared to 2011. Our sphere of action in 2013 is to continue to maintain the focus on providing cuttingedge EPCI/EPCIC services for oil and gas offshore projects. In addition, on the front lines, we will keep boosting our response to the regional markets by collaborating with leading clients and partners in such countries as Australia, India, Myanmar, Malaysia and some other countries in the region. In 2012 we successfully offshore installed and handed over three strategically important projects to our clients We also understand that no one is successful on his own, the achievements and milestones we have completed today would not be possible without the cooperation, support and understanding from Clients, partners, related parties and friends. Management and employees of PTSC M&C would like to express our deepest thanks and appreciation to all of you, we wish you a new year ahead full of successes, good health and lucks. Finally, we hope you enjoy this newsletter. Your feedback or comments, as always, are appreciated. From Board of Director, PTSC M&C 11 PTSC M&C was awarded Dua Subsea Development Project Gazprom s visit to PTSC M&C 13 12 Petroleum Management Unit (Petronas) carried out a capability audit at PTSC M&C fabrication yard 14 PTSC M&C was ranked 67th amongst top 500 largest Vietnam enterprises
BD1 PROJECT - A TWO-YEAR MARATHON JOURNEY The BienDong1 Project has achieved more than 10,274,209 man-hours without any lost time injuries In October 2012, PQP Topsides the most technically complicated and vital part of the Bien Dong 1 Project left PTSC M&C s fabrication yard and en route to its location offshore Vietnam, marking an important milestone for the Project after a 2-year marathon journey. The Bien Dong 1 (BD1) Project is an EPCI turnkey project awarded to PTSC M&C by Bien Dong Petroleum Operating Company (Bien Dong POC). This is the first and biggest offshore project ever performed by a Vietnamese local contractor, opening up new horizons for the Vietnam oil & gas construction industry in the future as well as proving the capability in provision of EPCI services of Vietnamese local contractors. To acknowledge and honor the contribution of company employees to the successful completion of the fabrication and pre-commissioning work for the PQP-HT Topside, during the period of two (02) days from 13th to 14th October 2012, PTSC M&C celebrated a team building event at Vung Tau City. At this momentous event, those individuals who have excelled themselves in the Run-To- Target campaign launched by the company were awarded for their outstanding services extended to the BD1 Project. As at October 2012, the offshore installation campaign of the PQP- HT Topsides was also successfully completed by float-over operation. Statistically, the BD1 Project has achieved more than 10,274,209 man-hours without any lost time injuries, which is a lively testimony of the coordinated effort made by Bien Dong POC and PTSC M&C. The scope of work of the whole BD1 Project encompasses the engineering, procurement, construction, installation, offshore hook-up support for 01 Central Processing Platform (PQP-HT) (including a 70-person-on-board living quarter); 02 Wellhead Platforms namely Hai Thach 1 (HT1) and Moc Tinh 1 (MT1), 03 jackets (PQP-HT, WHP-MT1 and WHP- HT1); 01 Link Bridge of which the total weight of facilities is approximately 60,000MT coupled with 70km pipelines and 21km subsea cables. So far, this project has been considered as one of the most technically complicated offshore projects in Vietnam. 06 07
SU TU TRANG PROJECT OBTAINED ITS FIRST GAS AHEAD OF SCHEDULE On 15th November 2012, at PetroVietnam Head Office in Ha Noi City, Cuu Long Joint Operating Company celebrated the First Gas Ceremony of the Su Tu Trang Project in block 15-1, offshore Vietnam. Hai Su Trang/Hai Su Den Project achieved 1,000,000 manhours without any lost time incidents On 7th September 2012, Thang Long JOC and PTSC M&C celebrated the Health Safety and Environment Day to acknowledge the turning point of Hai Su Trang/Hai Su Den project upon achieving the target of 1 million man-hours without any LTI. 08 The celebration is, more importantly, an indicator of the commitment shown by PTSC M&C so far in delivering this project safely. The achievement of 1 million man-hours was built upon the strong foundation of professionalism and support of Thang Long JOC s, PTSC M&C s management and workforce. This reinforces the strong relationship that exists between these two companies and sets in place a foundation to grow and develop this cooperation spirit. Till date, the offshore installation campaign for Hai Su Trang and Hai Su Den Jackets and Pipelines was completed. In addition, the pre-commissioning and commissioning work for Hai Su Trang and Hai Su Den Topsides was initiated and scheduled for completion in March 2013. PTSC M&C is in the process of doing the T&I engineering for two topsides supporting the installation campaign commencement in March 2013. Simultaneously, all procedure/ equipment for Hook-up and Commissioning (HUC) work is being prepared, ready for HUC schedule in April 2013. Having attended the ceremony were there representatives of the Government Office, Ministry of Industry and Trade, Ministry of Planning and Investment, Petro- Vietnam, PetroVietnam Exploration and Production Corporation (PVEP) CLJOC s partners, PTSC Mechanical and Construction (PTSC M&C) as well as other subcontractors. Block 15.1 in Cuu Long Basin offshore Vietnam is evaluated as one of the best potential prospects in Vietnam. Since the Petroleum Contract was signed 09 in September 1998, exploration and production activities in the Block 15.1 have been implemented efficiently with 230 million barrels of oil and 684 million cubic meters of gas produced so far. Su Tu Trang is amongst four discoveries of Cuu Long JOC under the Petroleum Contract in block 15.1. In March 2010, the EPCI contract to build Su Tu Trang Wellhead Platform was awarded to PTSC M&C as a prime EPCI contractor. Although Su Tu Trang is not a challenging project in terms of schedule, it is however an EPCI project that required high technical standards and stringent construction requirements. In order to preserve the quality and schedule of the Project, PTSC M&C utilized existing fabrication yards, took advantages of advanced technology as well as mobilized a strong resource of 750 workers and engineers who dedicated their utmost efforts to contribute to the successful completion of the project, achieving approx. 2,300,000 man-hours without any lost time injury. At the First Gas Ceremony, Mr. Franck Poli, President of Perenco Company, a partner of Cuu Long JOC emphasized that the success of the Su Tu Trang Project could be measured by the skills and dedication of the CLJOC employees and Partners seconded personnel in CLJOC, and the contribution and support of all stakeholders including the Government of Vietnam, Ministries, PetroVietnam, Partners, the EPCI prime contractor PTSC M&C as well as other subcontractors and suppliers. He also believed that the Su Tu Trang Long Term Production Test (LTPT) program could provide assurance of commercial quantities of hydrocarbons that could be developed to supplement the national energy demand.
10 11 PTSC M&C WAS AWARDED DUA SUBSEA DEVELOPMENT PROJECT UPGRADING RONG DOI BOOSTER COMPRESSOR Rong Doi Booster Compressor is one of the projects developed by Korean National Oil Corporation (KNOC) to upgradeits existing platform in block 11-2located 320km offshore Vietnam. PTSC M&C was subcontracted by its sister company PTSC Offshore Services (PTSC OS) the scope of detailed engineering, procurement and construction (EPC) for the Discharge Cooler and Booster Compressor systemweighing approximately 600 tons. The key functions of these systems lie in their capability to enhance the pressure in gas pipeline from Rong Doi Well Head Platform to Nam Con Son Gas Pipeline. The team formed by KNOC, PTSC OS, PTSC M&C and other subcontractors worked with the cooperative spirit and zeal to successfully complete the project without any lost time incidents. Accordingly, the production target has been achieved since October 2012. As reported by KNOC, the recoverable volume of this block is 753 billion standard cubic feet and production will continue by 2024. In September 2012, PTSC M&C was awarded the Dua Subsea Development Project (Project) by Premier Oil Offshore Vietnam (POVO). The contract values approximately 58 million US dollars. Located in the Chim Sao - Dua Field, block 12W offshore Vietnam, the Project relates to the development of the Dua subsea field as a subsea tieback to the Lewek EMAS FPSO. The Project work-scope comprises installation and construction engineering, onshore fabrication, procurement, construction, load-out, transportation, offshore installation, hook-up, pre-commissioning, commissioning assistance of the buckle triggers, PLEM, Twin Pipeline Active Manifold (TPAM), 17 km of dual 10 flowlines, flexible risers, umbilical and associated subsea facilities. Currently, the Project is being wellperformed ensuring good quality. The onshore work carried out by PTSC M&C is ahead of schedule; particularly, the buckle triggers were completed 3 weeks in advance and are now ready for the 1st offshore installation campaign in February 2013. The team of PTSC M&C and Premier Oil employees are making great attempt to prepare for the 2nd offshore campaign in May 2013.
PETROLEUM MANAGEMENT UNIT (PETRONAS) CARRIED OUT A CAPABILITY SURVEY GAZPROM S VISIT TO PTSC From 7th August to 8th August 2012 the delegation from Petronas Carigali Sdn Bhd of Malaysia, led by Mr. Zainuddin Kamarudin, General Manager paid a 2-day visit to PTSC M&C as part of its capability audit to update its bidder list for future projects. As part of the agreement jointly made by Gazprom and PetroVietnam, the delegation from Gazprom paid a working visit to PetroVietnam s subsidiaries from 10th to 21st October 2012 with the aim of having a better understanding about Vietnam s oil & gas industry. On 18th October, the delegation was warmly received by representatives from PTSC Headquarter and PTSC M&C Board of Management. Mr. Zainuddin Kamarudin, General Manager of Petronas Carigali Malaysia After the site tour at the fabrication yard and auditing PTSC M&C s current capability, the Petronas team highly appreciated PTSC M&C s experience and infra-structure. In the meeting, Mr. Zainuddin Kamarudin highlighted on the business expansion plans of Petronas Carigali Sdn Bhd in South East Asia and Vietnam is considered as one of the potential markets in which Petronas will further develop their business opportunities in the oil and gas exploration and production segment. Since 2004, PTSC M&C has provided Petronas with optimum solutions to build its offshore complex In an effort to give Gazprom s delegation an insight into the techniprojects in Vietnam such as Ruby A Expansion, Ruby-B, PLDP-A and Topaz.The successful completion of these projects is an indicator of the effective cooperation between Petronas and PTSC M&C. It also sets in place a foundation to strengthen and develop the business relationship which has been built up so far. Being evaluated as a leading EPCI contractor in Vietnam, PTSC M&C expressed its interest in having more opportunities to offer comprehensive EPCI services to Petronas and make a positive contribution to Petronas sustainable development in Vietnam and region. Gazprom is one of the giant global energy companies specialized in geological exploration, production, transportation, storage processing and sales of gas, gas condensate and oil. Currently, Gazprom is holding the world s largest natural gas reserves. It has also partnered with Petro- Vietnam on a natural gas project in block 05.2 and 05.3 offshore Vietnam. cal services provided by PTSC, PTSC gave a detailed presentation about its core services as well as its capability. Both parties had an open and fruitful discussion about each company s sustainable development strategy and the potentiality of cooperation. After the constructive discussion, the delegation visited PTSC s workshops and observed major projects being carried out at PTSC s fabrication yard. Gazprom expressed their im pression on the business growth of PTSC as well the experience levels it has achieved in Vietnam to date. Besides the delegation also sent the sincere thanks to the hospitality of PTSC and its subsidiaries dedicated to the delegation during their visit in Vietnam and believed that the spirit of friendship and cooperation between these two parties would remain strong. 12 13
PTSC M&C was ranked 67 th amongst top 500 largest Vietnam enterprises On 11th December 2012, PTSC M&C was delightfully announced to be ranked 67th amongst top 500 largest Viet Nam enterprises. The achievements were thanks to the tireless endeavors of the company Board of management and dedicated employees who have strived daily in pursuit of work and made great attempt to navigate the company business through challenging waves caused by the vulnerable economy and stiff competition of the world players in the oil and gas segment. ones with high revenue are selected; accordingly, 500 largest enterprises are shortlisted. PTSC M&C has been officially listed in the top 500 Vietnam largest Enterprises since 2010 in which the company was ranked 115th. Improvement was made in 2011 and 2012 when our position is increased to 105th and 67th respectively. Mr. Tran Thien Le, Deputy Director, received the Merit Certificate of Top 500 Vietnam largest enterprises Top 500 Vietnam Largest Enterprises by revenue ranking is being conducted under the model of Fortune 500 which is in accordance with international standards. Amongst 300,000 Vietnamese enterprises, top 5,000 At the top of the ranking is PetroVietnam which was ranked No.1 since the first launch of the rating program. PTSC M&C s Parent company (PTSC Corporation) stood at No.26 in the list. PTSC M&C Newsletter, No. 1, 2013 Edited and designed by Business Development Department 14
PTSC Mechanical and Construction JSC No. 31, 30/4 Street, Ward 9, Vungtau City, SR Vietnam Tel: (84) 643 838 834 - Fax: (84) 643 838 170 Website: mc.ptsc.com.vn