CONGER PROJECT

DB 16 Spreads its New Wings
By: Will Wilson, PMP, Project Manager
Jim Bass, Project Engineer

Western Hemisphere Operations

The offshore construction activity supporting the energy industry in the Gulf of Mexico and around the world is increasingly moving into deeper and deeper water depths. In response to this trend, JRM upgraded the dynamically positioned (DP) Derrick Barge 16 with a modular S-lay package, enhanced deepwater lowering system, and automatic welding equipment suite. The DB-16 recently completed the offshore installation of the Conger subsea pipeline system for the Conger partners Amerada Hess, Shell, and Kerr McGee in the Gulf of Mexico.

The Conger flowlines "tie-back" or connect the Conger development of subsea wells in Garden Banks Block 215 to Shell's Salsa Offshore Platform in Garden Banks Block 172. Water depths vary from 1450' at the Conger site to 700' at the Salsa platform.

Production from the wells will flow to the platform via dual, 8 inch diameter, insulated flowlines (4.5 miles in length each) connected to a subsea manifold by flowline jumpers. An additional well is tied into the subsea manifold via a one-mile long, 6 inch diameter insulated flowline. Product will flow through an existing pipeline network to shore-based facilities. The dual 8" flowlines allow "round trip" pigging of the system from the Salsa platform.

The project is technically noteworthy in that the design maximum allowable operating pressure of the flowline system is 13,600 psi. This pipeline system is the first "15 K" subsea pipeline system in the world. JRM was responsible for installing the three flowlines, four pipeline end manifolds, and the subsea distribution manifold. The flowlines were connected to the Salsa platform by pulling the starting ends of the pipelines through existing J-tubes at the Salsa platform. JRM's scope was completed with the successful hydrotest. Additionally, JRM's Mentor Engineering designed the pipeline end manifolds (plems) with JRM subcontracting fabrication to Oil States Industries.

The work was performed under a blanket service agreement with Shell, which allows JRM to be reimbursed for actual project costs and an agreed profit rate with a gainshare/painshare adjustment based on comparison of actual project cost to an agreed upon target cost.

The project was awarded to JRM in November 1999; Installation was complete in July 2000 and hydro-testing was complete in September 2000. The project schedule, with completion coming less than a year following award, highlights the accelerated pace now being applied to deepwater installation work. Fortunately, the project team, and vessel crew identified for the work had completed similar deepwater work tasks involving JRM's DB-50 in the recent Shell King, Angus, Macaroni, and Europa projects. The challenge was to apply the experience and lessons from these projects to a newly configured deepwater construction vessel without sacrificing JRM's commitment to Safety and Quality.

The JRM installation project team was organized to include representatives from Project Management, Marine Operations, Mentor Engineering, and New Orleans Engineering. The organization capitalized on the experience and relationships built on the previous deepwater installations. The team members were familiar with the procedures developed recently on past projects, the lessons learned from execution, the customers for whom we were working, and the interfaces typical to the required planning tasks.

The project team established interfaces with the team responsible for the DB-16 upgrade to insure that the vessel would be fit for purpose "right out of the box". Project requirements and concerns were fed to the upgrade team, and schedule constraints, concerns and conflicts were communicated by and between the project team, the upgrade team, and Shell. Vessel trials were accomplished upon completion of the upgrade work to validate vessel capabilities. Shell and McDermott personnel, from Vice Presidents to new hire craft labor, participated in a series of "technical limits" workshops which worked to optimize every step of the actual offshore installation and establish project goals which were achievable and "owned" by those who could make them happen .

As offshore projects go into deeper water using new technology, ownership and project risk are increasingly being shared by the practice of partnerships among energy companies. This practice requires that the project team respond to the needs of a larger group of project stake-holders. In the case of Conger, JRM was working directly for Shell, while the operator of the development was Amerada Hess. Kerr McGee also owned an interest. It was important to the success of the project that all of the owners needs be met. In a partnering arrangement it is important to adequately communicate with all stakeholders and at the same time make the decision process in planning activities meet the strict schedule constraints required in a fast track project. In the case of Conger the lines of communication and authority were well established and frequently used. Input from all quarters was encouraged to insure that the best practices and plans were used, but a firm "base case" was established as the governing plan. New ideas and scenarios had to quickly show that they possessed real merit with respect to safety, quality, and/or efficiency in order justify a change in the base case.

The Conger project was completed with less than budgeted, mechanical downtime, no lost time accidents, or builders risk events, and with significant accomplishments towards the technical limit goals set. The DB-16 demonstrated that it could efficiently perform multi-faceted deepwater installations under a single mobilization. JRM can expect there will be many more of these fast track, deepwater tie-back projects in our future.

JRM now has a proven vessel in its fleet which can efficiently execute all of the varied demands of deepwater projects without the costly mobilization of multiple vessels, crews, and subcontractors. The capabilities of the DB-16, coupled with the deepwater construction experience of our people and the lesson's learned on Conger, put us in a perfect position to capture and execute more work in the growing deepwater market.