zadco An internal magazine issued by Zakum Development Company for its employees Issue No. 44 March - April 2010 ADNOC’s Senior Management Visits Zirku Island ZADCO Board and JMC Meeting New Era in ZADCO’s Operations Early stages of building UZ Central Complex in 1977 General Manager, General Management Team members and all Employees of Editorial Contents T oday ZADCO is embracing a new, important stage in which it will underpin its situation in the oil and gas industry especially with regards to creativity and innovation in well operations development. In 2006, ZADCO declared full field development and its plans to increase production to 750,000 barrels of crude oil per day by 2015. Such commitment represented a challenge which stimulated several scientific and professional workshops to envisage a vision of how to achieve this objective in a way that meets all HSE standards. 2 aDNOc Senior Management Visits Zirku island z a d c o Board and JMc Meeting The establishment of artificial islands was the most effective solution as it makes it possible for drilling operations to reach depths that could never be reached through wellheads and the traditional offshore rigs. Moreover, it enhances the health and safety conditions for workers on sites, this also facilitates recycling waste in a better manner and saves large quantities of fuel and emissions through the process of transportation, drilling, and operations in addition to meeting the sustainability conditions which have been integrated into the artificial island’s design to ensure the best safe production conditions which will save money and efforts in the long run. ZaDcO New Organization innovation towards well integrity excellence UZ 750 project launched iT News innovative contracting approach icDl center Opened at Zirku island New recruits corporate Social responsibility activities Hse Focus: - contractors GM’s Meeting - physical Fitness campaign This major commitment which has been made through a state of the art project and first of its kind in the region requires all workers to maintain a high sense of competence and dedication to achieve this objective which resembles a milestone in ZADCO’s history in particular and the oil industry in the UAE and the region in general. - al Marwah Biosphere reserves - health - Stroke n e w s 4 5 6 8 10 12 14 15 16 18 20 21 22 Front Cover “zadco”, an internal magazine issued by Zakum Development Company for its employees Contributions, enquiries and suggestions are welcomed. Please call ZADCO Public Relations Tel: 6052505 or send e-mail to: publicrelations@zadco.ae Website: www.zadco.com zadco March - april 2010 Sketch 3D image of an artificial Island at Upper Zakum 1 ADNOC’s Senior Management Visits Zirku Island On 12th of May 2010, H.E. Abdulla N. Al-Suwaidi Deputy CEO - E & P Director, Mr. Mohammad B. Al-Qubaisi Deputy E & P Director and Mr. Ali Khalifa Al-Shamsi Offshore Division Manager, visited Zirku Island accompanied by ZADCO General Management Team. The visit came as an implementation of ADNOC’s continuous care for standing at all the developments of its group of companies and as a resemblance of what Zirku Island means as the business hub of ZADCO and the environmental heaven for a number of distinguished living creatures. The visitors started the visit with a briefing about the progress of the Island conducted by Site Manager Mr. Jamal Al Amari, then Zirku VIP guests made a tour around the island where they visited Zirku plant and they expressed their admiration for the unique operations of ZADCO with full commitment to HSE. In the same context the ADNOC’s Senior Management visited Zirku greening projects and the Renovated Ruler’s Villa which lies on the Hill facing the Accommodation Area in Zirku Island. Then a meeting with the UAE Nationals took place where they expressed their thanks and gratitude for ADNOC’s support and presented their requests and suggestions to ADNOC’s Management. H.E. ADNOC’s Deputy CEO took zadco March - april 2010 2 ZADCO into consideration all the suggestions and requests as he promised to exert his efforts to put them into action and urged the young generation to insist on having the best training and education while they have the opportunity. NEWS their business unit continuously which allows ZADCO to maintain its position and distinguished role within ADNOC Group . Finally, the visitors left the island to Abu Dhabi after they conveyed their appreciation to Zirku Management and employees for their nice reception and their dedication to enhance the performance of ADNOC’s Senior Management met with the UAE Nationals Employees at Zirku. 3 BOARD & JMC Congratulate ZADCO on Setting Multiple Drilling Records for Abu Dhabi and Approve ZADCO’s Organization Restructuring ZADCO's Board of Directors and the Joint Management Committees held their Spring meetings on Sunday the 23rd of May 2010 in ZADCO Board Room, under the chairmanship of the Deputy CEO of ADNOC and the E&P Director, Mr. Abdulla Nasser Al Suwaidi. B esides the Chairman, ADNOC was represented by the Deputy E&P Director Mr. Mohamed B. Al Qubaisi, the Offshore Division Manager Mr. Ali Khalifa Al Shamsi and the Reservoir Engineering Division Manager Mr. Qasem Al Kayoumi. ExxonMobil was represented by its Vice President Middle East, Mr. Mark J. Nolan and President ExxonMobil-Abu Dhabi, Mr. Morten Mauritzen while General Manager Abu Dhabi Unit 2 Mr. Kuzuyoshi Arisaka and the Chief Technical Representative Mr. Masayuki Furuya represented JODCO. ZADCO was represented by its General Manager Mr.Saif Al Suwaidi, DGM-UZ Mr. Ali Hassan Ali Marzouqi, AGM-ZR Mr. Badr Al Mansoori, AGM-TO Mr. Helal Al Mansouri, AGM-AS Mr. Jumaa Al Mehairi and AGM-CS Mr. Khalifa Al Darmaki. Finance Manager Mr. Nasser Al Nasseri and Corporate Planning Manager Mr. Mark Taylor also attended the meeting. ZADCO’s General Manager made a presentation on ZADCO’s activities highlighting its performance, the achievements made and the planned way forward in various areas of its operation. The Shareholders commended ZADCO’s performance and congratulated ZADCO on winning the “Gold” Award in Oil & Gas Sector of the prestigious Sheikh Khalifa Excellence Awards (SKEA) for 2009. The Shareholders also commended ZADCO’s safety and environmental performance achievements. zadco March - april 2010 Expressing their satisfaction with the progress made in the UZ750K Development Project, the Shareholders stressed the need for effective cost management for this multi-billion dollar project. The Shareholders commended ZADCO’s achievements in successfully drilling the MRC pilot wells using latest technology and congratulated ZADCO for setting new drilling records for Abu Dhabi. The Shareholders appreciated ZADCO’s accomplishments at Satah in maintaining production and the timely completion of 3D Seismic data acquisition. Shareholders also requested ZADCO to look at accelerating Umm Al Dalkh field development. Besides endorsing the recommendations of the various Committees, the Shareholders approved the 2009 ZADCO Accounts. The Shareholders also approved the organization restructuring proposed by ZADCO whereby the UZ and ZR Business Units are to be merged into two new Units – “UZ/ZR Operations” and “Development”, besides some minor adjustments in other Units. ZADCO General Manager thanked the Shareholders for their continuous support and assured them that all efforts will be directed towards enhancing performance in all sectors in ZADCO. It was tentatively agreed to hold the next Board and JMC meetings on Zirku Island on Sunday, 12th December 2010. 4 ZADCO NEWS Organisation Restructuring in ZADCO A s approved at the Board of Directors and JMC Meetings ZADCO organization has been restructured with effect from 4th July 2010. The main features of the new structure are: 4 The Job Titles for GMT have been revised in line with ADNOC’s directives. 4 A Development Unit has been established for the development of Upper Zakum Field and Drilling. 4 UZ and ZR operations and support have been merged under a UZ/ZR Operations Unit. 4 The Commercial Department has been realigned under the Technical Support Unit. 4 The Facilities Integrity Department has been realigned under the UZ/ZR Operations Unit. New Management appointments within the revised organization are as follows: UZ Development Unit 4 Mr. Ali Hassan Al-Marzooqi, Senior Vice President Development 4 Mr. Raymond Mitro,Vice President Field Development, 4 Mr. Egil Eide, Vice President Drilling 4 Mr. Robert Talbot, Vice President UZ750 Project UZ/ZR Operations Unit 4 Mr. Badr O. Al-Mansoori, Senior Vice President UZ/ZR Operations. 4 Mr. Ihab O. Tarmoom, Vice President Operations Support 4 Mr. Yaslam Al-Ameri, Manager Maintenance Support 4 Mr. Mohamed Fiaz Abdulwaheed, Manager Engineering Support 4 Mr. Salem Al-Omrani, Manager Operations Planning & Coordination Satah/Umm Al Dalkh Unit 4 Mr. Masayuki Furuya, Senior Vice President Satah / Umm Al Dalkh Technical Support Unit 4 Mr. Helal A. Al-Mansouri, Senior Vice President Technical Support Administration Support Unit 4 Mr. Jumaa O. Al-Mehairi, Senior Vice President Administration Support Corporate Support Unit 4 Mr. Khalifa R. Al-Darmaki, Senior Vice President Corporate Support. The remaining Management appointments and titles are as per the current organization. ZADCO Technical Committee Endorses Strategic Direction for 2011-2015 Business Plan The 64th meeting of ZADCO Technical Committee was held on 28th & 29th April 2010 under the chairmanship of Mr. Jeff Simmons of ExxonMobil. T he ADNOC team was led by the E&P Offshore Division Manager, Mr. Ali Khalifa Al Shamsi while C. Sasaki led the JODCO team. ZADCO was represented by Messrs Ali Hassan Al Marzouqi DGM(UZ), Badr Al Mansoori AGM(ZR), Helal Al Mansouri AGM(T&O), Khalifa Al Darmaki AGM(CS), Ray J. Mitro ADGM(UZFD), Ihab Tarmoum ADGM(UZOS) and Egil Eide ADGM(UZWO) besides the concerned EMTs and Team Leaders. Welcoming the Shareholders' representatives, Mr. Ali Hassan Al Marzouqi DGM-UZ, hoped for a beneficial meeting to come up with unified conclusions and recommendations for endorsement/approval of the Board and JMC. The Shareholders appreciated ZADCO's efforts in organizing various technical workshops and SubCommittee meetings which proved to be very beneficial in understanding the major issues, and the Technical Committee endorsed the outcomes of most of these workshops/meetings. ZADCO's ADGM(UZFD), ADGM(UZWO), HSE / CP / SUFD managers and BRM T/L made presentations on their respective agenda items. The Shareholders commended ZADCO for the good HSE performance and encouraged ZADCO to continue efforts for further enhancement. The Shareholders endorsed the Strategic Direction including the concepts and assumptions proposed by ZADCO for developing the 2011-15 Business Plan. The Shareholders appreciated the excellent work done by ZADCO in developing integrated surface / sub-surface plans for achieving the target production rates utilizing artificial islands as centralized drilling and production centres (DPC). They congratulated ZADCO for the success achieved in drilling of pilot MRC wells. The Shareholders recognized the outstanding performance delivered by ZADCO. They also appreciated the high standard of ZADCO's presentations, clear informative handouts and for effectively documenting and updating the actions arising from the meetings.. 5 ZADCO Sponsoring “Innovation Towards Well Integrity Excellence” Workshop, the 5th Workshop Part of ADNOC Knowledge Sharing and Application of Best Practices Initiative ZADCO sponsored the 5th ADNOC Knowledge Sharing and Application of Best Practices Workshop which was conducted on 2nd March 2010 at the Hilton Hotel - Abu Dhabi. The workshop which was conducted under the theme “Innovation Towards Well Integrity Excellence” is a part of the Best Practices initiative that was started in year 2007 among ADNOC and SPC (Supreme Petroleum Council) group of companies. The workshop had for the first time international delegates from Maersk Oil – Qatar who presented their experience in evaluating risks for wells with well integrity problems. The workshop was chaired by Mr. Ali Al Shamsi ADNOC E&P Offshore Division Manager along with the Mr. Bakheet Al Katheeri ADNOC E&P Offshore Production and Facilities Engineering Manager and Chairman of Best Practices Committee and Mr. Egil Edie the ZADCO Assistant Deputy General Manager for Well Operations. zadco March - april 2010 6 Z ADCO sponsored the 5th ADNOC Knowledge Sharing and Application of Best Practices Workshop which was conducted on 2nd March 2010 at the Hilton Hotel - Abu Dhabi. The workshop which was conducted under the theme “Innovation Towards Well Integrity Excellence” is a part of the Best Practices initiative that was started in year 2007 among ADNOC and SPC (Supreme Petroleum Council) group of companies. The workshop had for the first time international delegates from Maersk Oil – Qatar who presented their experience in evaluating risks for wells with well integrity problems. The workshop was chaired by Mr. Ali Al Shamsi ADNOC E&P Offshore Division Manager along with the Mr. Bakheet Al Katheeri ADNOC E&P Offshore Production and Facilities Engineering Manager and Chairman of Best Practices Committee and Mr. Egil Edie the ZADCO Assistant Deputy General Manager for Well Operations. The workshop was attended by more than 120 delegates from ZADCO, ADCO, ADMA-OPCO, Maersk Oil (Qatar), ADOC (Japan), TOTAL ABK, BUNDUQ, in addition to the major service providers namely Baker Hughes, Halliburton, Schlumberger, and Weatherford. The workshop also had high level of representation from senior management of the participating companies and remarkable participation from service providers who presented their latest innovative solutions for well integrity problems. The workshop program started with a safety moment presented by Mr. Yousef Al Katheri from ZADCO followed by an opening speech given by Mr. Ali Al Shamsi who welcomed all participants from the group of companies and the international delegates from Qatar to the workshop and urged all to have the maximum benefit from such workshops and the knowledge transfer within their organization by which a culture of sharing best practices would grow and flourish. Next in the program Mr. Bakheet Al Katheeri gave a brief presentation explaining the surrounding conditions that urged ADNOC and the group of companies to start promote sharing of best practices also Mr. Al Katheeri gave a brief update on ADNOC Knowledge Sharing website (www.adnoc-km.com) and urged all participants to start utilizing the website as a platform for sharing best practices, Mr. Al Katheeri later indicated that there is a 10 points scoring system for sharing and applying best practices across the group of companies. Following in the workshop program there was nine presentations started with a presentation by Mr. Mahmoud Hassan from ZADCO on the Application of Improved QA/QC Procedure for Running New Completions. Following ZADCO presentation another 8 participating companies presented different topics to share their best practices in well integrity excellence. The eight presentations in the workshops after the first ZADCO presentation, are: Sustaining Annuals Pressure (Consequences and Mitigations) second presentation by ZADCO, Evaluating the Risk for Wells with Well Integrity Problems by Maersk Oil, Well Integrity Updates by TOTAL ABK, Pressure Management Practices by ADMA-OPCO, Diagnostic Survey for Casing Leak by “Well Leak Detector” by BUNDUQ, ADOC Well Completion Design and Operation Practice in High Sour Oil Wells by ADOC (Japan), Well Integrity Management Systems by ADCO and finally Updates on Financial Crises by ADNOC. Approaching the end of the program Senior Management representatives from different ADNOC and SPC group of companies award the participant speakers with gifts and certificates as an appreciation for their efforts in supporting this event. At the end of the workshop program Mr. Bakheet Al Katheeri thank all participants for their positive participation and the workshop organizing team from ZADCO for their effort to make this event a success, Mr. Al Katheeri as well encouraged everybody to promote and apply best practices which will make this initiative a role model among ADNOC & SPC group of companies toward efficient synergy between the participating companies. Mr. Al Katheeri informed the participant that the next workshop will be sponsored by GASCO and planned to be by Q4 2010. The Innovation Towards Well Integrity Excellence workshop concluded many lessons learned and best practices that surely will have some applications across the participating companies moreover it enhanced networking among professionals and academics from different fields/companies and will result in additional benefits beyond the basic objectives. 7 Project Launched to Elevate Sustainable Production to 750 BOPD Upper Zakum Redevelopment Project Leads to Sustainable 750 MBOPD Production Artificial islands to house drilling and production centers, enabling advanced drilling technology and employing the highest HSE standards ZADCO, on behalf of its shareholders, has a strategic target to increase the production rate from Upper Zakum from 550 thousand to 750 thousand barrels of oil per day by 2015, sustainable for 25 years. Initially the development plan to achieve these targets was based on an additional 25 Wellhead Platform Towers, together with hundreds of kilometers of new flow lines. Major facilities upgrades on existing satellites and the central processing platform were also planned. Inherent in these development plans was the need to more than double the jack-up drilling rig fleet in order to achieve the necessary production build-up rate. The flexibility to manage long term reservoir performance, well integrity issues, corrosion and aging of existing structures and subsea flow lines has led ZADCO to seek out a better and more economical future development concept. ZADCO embarked on an assessment of possible alternative concepts and the findings provided a compelling case for change from the conventional development plan to one that consolidates drilling centers and processing facilities on artificial islands, and utilizing new technologies in Extended Reach Drilling (ERD) and Maximum Reservoir Contact (MRC) to effectively develop the entire field. zadco March - april 2010 8 PROJECTS ZADCO’s plans to increase production to 750,000 by 2015: ZADCO’s mandate to achieve sustainable production of 750 MSTBD based on full field development, including areas of lower reservoir quality, is a challenging task. Different options were evaluated, including continuing with the current Wellhead Platform Tower approach. This involved adding many new wellhead towers, hundreds of kilometers of flow lines, hundreds of new wells, significant well workover requirements, and investing in substantial gas injection expansion and gas capturing facilities. ZADCO's evaluation determined this to be a high cost, low development flexibility approach that had significant logistical and operating issues associated with it. The artificial islands concept: In collaboration with ZADCO shareholder ExxonMobil, the concept of artificial island based drilling and production centers was evaluated and found to be an attractive forward development plan. To support this concept, ZADCO’s own drilling division was established and high-technology extended-reach drilling (ERD) was employed. ExxonMobil has extensive experience with this technology, for example at the Sakhalin field in Russia. Additionally, the use of Maximum Reservoir Contact (MRC) technology, offers the opportunity to reduce the required number of new wells and unlock tighter areas in the reservoir. Although these technologies have been applied in other parts of the world, they are new to the region and the projected scale of application is unprecedented. Historically, ZADCO has drilled wells of approximately 10,000 feet. However, with this new technology, it is planning to reach 30,000 to 35,000 feet. To date, ZADCO has completed drilling a pair of MRC wells, each almost 20,000 feet total drilled length – both wells setting several drilling records for ZADCO. The data from these pilots will help to design future drilling and completion designs. Many of the wells on the islands will be complex and expensive wells but their contribution will be much higher than historic UZ wells. This will improve production performance, optimize the well count, and minimize capital investments. ExxonMobil is a key enabler for the application of this drilling technology and they will be supported by NDC and industry leading directional drilling and completion service providers to ensure success in the execution stage. These drilling technology advances will be supported through the new ZADCO drilling organization as well as utilizing the Technology Center, established and operated by ExxonMobil, and co-located within the ZADCO HQ, to provide full access for ZADCO staff to ExxonMobil’s proprietary technologies, tools and best practices. Advantages of using artificial islands Artificial islands provide a more flexible and robust development base for the redevelopment of the UZ field. This will significantly reduce life-cycle development costs and enable long term maximum recovery levels to be achieved. The ‘green fields’ development on islands accelerates oil development rate, is safer and more capital efficient. Gas lift application on the islands will be much easier than from WHPT and will help improve long term reservoir recovery. The current development plan has the potential to extend the production plateau for up to more than 15 years and significantly delay the need for full field EOR / WAG application and investment. Leading the way The redevelopment of the UZ field will present many technological and operating ‘firsts’ for ZADCO which will provide opportunities for additional development applications in the Gulf. The centralized drilling and production centers coupled with ERD and MRC technologies open opportunities in offshore shallow waters. Across the ADNOC group, ZADCO is the pioneer, being the first to intensively apply such complex drilling completions in terms of extended reach drilling (ERD) and with higher reservoir contact (MRC). Looking Ahead ZADCO expects first oil production from the artificial islands to begin in late 2013 and then to achieve the production mandate of 750 MBOPD by the end of 2015. This production plateau will be maintained for 25 years with an initial application of water injection and selective gas lift, followed by enhanced recovery application. The gradual phase-out of existing wells and wellhead towers will be possible as more wells are drilled from the islands and maintenance of existing facilities becomes increasingly costly. In the long term, the artificial island concept can provide the opportunity to migrate all production and well operations from the current platforms to the islands and provide for the efficient long term depletion of the excellent Upper Zakum asset. Existing wells will be eventually safely abandoned and existing structure can then be decommissioned / disinvested. 9 IT News Prepared by: Mohamed Al Zaabi ITCS Team Leader Many projects have been executed within ZADCO lately by IT department, Here are some updates.. Office Communicator: annoying, especially when you are at the midst of sending an important email. No more frustration, as IT has taken the initiative to increase the mailbox size 5-10 times. But remember that even few GBs of mailbox size will eventually get full. Office Communicator is the corporate equivalent to MS Messenger. It allows you to communicate easily in a number of ways. You can send instant messages, check whether your colleagues are busy/available, share large files (100 MB,) share desktops, and also have live video meetings. Work is in progress to integrate Office Communicator with the telephone system so that you can manage your phone calls. Instant Messaging using Office Communicator is ideal for everyday business conversation. Messages sent in this way are not stored and when you exit they are deleted, so they don’t take up valuable space in your email account. Although Office Communicator offers a more relaxed method of communication, please remember that by using this service you agree to be bound by the company regulations and policies for Use of Computing and Email. Push Mail: IT department introduced Push Mail service to all ZADCO email users. Interested users should subscribe (on their own zadco March - april 2010 expenses ) for push mail service on their 3G/push mail compatible mobile phones (BlackBerry sets are not supported) from Etisalat or du. Push Mail is used to describe e-mail systems that provide an "always-on" real-time capability, in which new email is instantly and actively transferred (pushed,) by the mail server, through to the client as it arrives, rather than requiring the client to poll and collect or pull mail manually. With a push email smartphone, for example, the client’s mailbox is constantly updated with arriving email without user intervention. Smartphones announce new mail arrival with an alert. Push email can be especially crucial to many professionals for whom time is of the essence. Other features that the user will notice is the automatic update in his calendar and the availability of the global address book. Increasing Mailbox size: Most of you are familiar with the following Mailbox Cleanup Messages which frequently pop-up to alert you whenever you exceed the size limit (100 MB) of your mailbox. This will call for Auto-Archiving or moving items to the Personal Folders on your computers which are inaccessible while away from your own PC. It is Thus fore, users still need to prioritize and organize business e-mail and archive as required. • Organize your mailbox with subfolders & still access while you are away from your PC • Create PST files or use Auto-Archive To check your mailbox size: 1. right click on mailbox folder 2. Click on Properties 3. In General tap click on Folder Size 4. In Local Data you will see the total size including sup folders. ServiceDesk Plus (The new Help Desk system) ServiceDesk Plus is a web-based helpdesk software that helps us manage all our communications from a single point. It offers an integrated 10 INSIDE management, Asset Request management, Self-Service Portal, and Knowledge Base. ServiceDesk Plus help desk management gives us everything to manage our help desk requests effectively. It includes Self-Service Portal, Knowledge Base, auto routing of requests, notifications, email integration, Active Directory integration, custom request form, user survey. ZADCO TIL Compliant ServiceDesk Plus ITIL compliant helps to streamline our IT service with the ITIL (Information technology Infrastructure Library) best practices easily. The workflow designed out of the box helps us implement without any expert consultations. It • Self-service portal to enable login for users to submit their trouble tickets • Web-based knowledge-base system for users and technicians to search and add the troubleshooting docs • NMS Integration to integrate with Network Monitoring Software for tracking events and network failures • Email Integration to handle all the help desk emails sent by the users • Notification alerts via email or sms, to inform users or technicians for request handling • Request scheduling to manage and track the preventive maintenance tasks • Active Directory integration to enable user authentication with single sign-on functionality • Request survey to know the technician competent level and user satisfaction level on request resolutions includes Incident Management, Problem Management, Change Management, Release Management and Configuration Management Database (CMDB). • Incident Management Restore normal services as soon as possible with workarounds or solutions to make sure that it does not affect business • Problem Management - Find the root cause of incidents and reduce the impact on business. Problem Management is a proactive approach that prevents recurrence of incidents • Change Management Implement a comprehensive change management system that allows you to handle pre-approved changes and changes with complete approval cycle • Configuration Management Database(CMDB) -CMDB is a centralized repository that holds all the information about all the assets. CMDB also manages the relationship between the Configuration Items (CIs) ADNOC Group Telecom Coordination Meeting Z ADCO hosted lately ADNOC Group Telecom Coordination Meeting No. 4. Telecom representatives from ADNOC and its group companies, several international petroleum companies operating in Abu Dhabi and Etisalat attended the meeting. The session started by a welcoming speech by the acting IT Manager Mr. Saeed Al Dhaheri, followed by a presentation on the current and future ZADCO telecom infrastructure performed by the Telecom and Networking Teams. Another presentation was offered by Etisalat promoting for the new Managed IP Telephony services. During the meeting the attendees discussed their current issues and concerns and shared their future plans and projects with all companies. 11 ZADCO operates Upper Zakum and Umm Al-Dalkh offshore fields located in the Arabian Gulf. The entire production of these fields and ZWSC GGII condensate is transported from Zakum Central Complex (CC) to Zirku Island through a 60 km, 42-inch Main Oil Line (MOL) for processing, storage and export. This strategic pipeline has been in service since 1982. Based on several intelligent pigging operations to determine the condition of the MOL, it has been established that corrosion has taken place with significant metal loss and consequent reduction in MOL wall thickness. Accordingly, installation of a new MOL was agreed. 42” New Main Oil Line An Innovative Contracting Approach By P.K. Gupta- Contracts & Procurement Engineer, Commercial Dept Contracting Strategy Upon completion of Conceptual Design and FEED by J. P. Kenny, various contracting strategies were deliberated and it was concluded that an Engineering, Procurement and Construction (EPC) contract is in the best interest of ZADCO. The scope of EPC Contract basically includes a new 42-inch sub-sea pipeline from Zakum CC to Zirku Island with other related facilities. First Time Contract After initial setting up of Zakum & Zirku Facilities about 30 years ago by ADNOC, a single contract of this magnitude for creating new facilities, which runs into hundreds of millions of Dollars, was undertaken for the first time in the history of ZADCO. Therefore, contractual and commercial precedence for contracting such a major work was not available in ZADCO. Following Management mandate for ‘Out of Box Thinking’, significant issues, which could ultimately impact prices, were analyzed and even the established norms/practices were challenged to get best value for money for the Shareholders. Innovative Approach- Significant contractual & commercial Provisions With above background, numerous contractual & commercial innovations were introduced for the first time in ZADCO for the EPC Contract. Significant innovative provisions are described below: 1. Pricing Mechanism Whilst majority of the EPC Scope was firm & fixed, there were certain elements of works for which either ZADCO zadco March - april 2010 wanted to maintain certain options or their execution would depend upon outcome of studies/ actual situations at site. Therefore, in order to minimize pricing for the uncertainties, the EPC Bidders were asked to provide prices under (a) Lump Sum Price for the firm Scope (b) Optional Prices for the Optional Items and (c) Reimbursable Rates/Prices for those items which could not be established during bidding. This pricing mechanism considered more equitable to both parities as EPC Bidders not required to price for the indefinable scope/quantities in their bids. 2. Rely Upon Data Consistent with the EPC industry norms, the concept of Rely Upon Date was introduced for those ZADCO provided documents which cannot be verified by EPC Bidders during bidding e.g., Basis of Design, Site Survey Reports, Characteristics of ZADCO equipment, etc. This enabled EPC Bidders to quote realistic prices without unnecessary contingency for the unidentifiable risks. 3. Bidding Currency (ies) Currency fluctuation risk was a major concern for the international EPC Bidders due to current volatile FOREX market. Therefore, EPC Bidders were allowed to quote in multi-currencies with the provision that for price comparison purposes, all currencies will be converted into US Dollars using exchange rates prevailing on the date of Priced Bid submission. Concurrently, to limit ZADCO exposure, it was stipulated that the Contract will be prepared in US Dollar only using exchange rates prevailing on the 7th calendar day from the Letter of Award (LOA) date. This mechanism provides minimum currency fluctuation risk for the EPC Bidders during bidding and hedging possibility upon award which resulted in lower price for ZADCO. 12 ACHIEVEMENT 4. Weather down time Considering lengthy contract duration (i.e.,30 months), mechanism was provided to encourage EPC Bidders to lay offshore pipeline during the best weather window. The EPC Bidders were asked to includes weather down time of 25 days for the main Pipelay Spread within the Lump Sum Price with the provision that any saving to or increase from 25 days will be shared equally between ZADCO and EPC Bidder based on the quoted Day Rate. This provision would encourage EPC Contractor to work in the best weather window e.g., just 4 days reduction of weather down time by rescheduling pipe laying will yield a saving of over One Million Dollars which will be shared equally between ZADCO and the EPC Contractor. 5. Sub-Contractors & Vendors Being a first major project, formal process for SubContractors / Vendors as well as adequate in-house data, were not available in ZADCO. Therefore, besides providing available Sub-Contractors/Vendors lists, the EPC Bidders were also asked to propose project SubContractors /Vendors under Codes A1, B1 & B2 as below: • Code A1-Proposed Sub-Contractors/Vendors pre-qualified by ZADCO/ ADMA i.e., in SBLs . • Code B1-Proposed Sub-Contractors/Vendors pre-qualified and previously used by EPC Bidder. • Code B2-Proposed Sub-Contractors/Vendors pre-qualified by EPC Bidder but not used previously. The EPC Bidders proposed Sub-Contractors/Vendors were reviewed with the involvement of various internal stakeholders such as MP/NMOL/EPE /LI/CMD/CME/PMC Thereafter, for material, an unified list of Codes A1 & B1 Vendors compiled to keep all EPC bidders were on equal footing. For the Services, SubContractors proposed by individual EPC Bidders under Code A1 & B1 were used. In this manner, EPC Bidders expertise was used to create project Vendors/Sub-Contractors lists which would provides data for future projects to CMD. Conclusion It is considered that these significant innovative provisions contributed to a great extent EPC Bidders compliance to ZADCO requirements and submission of unqualified Priced Bids with reasonable & transparent prices. This could be possible with the support of JVPs/ Management, guidance of CM & MP Managements and close coordination & team work of all involved parties such as NMOL, CME, EPE, LI, UZ & ZR BUs, LG, FI, HSE, PMC, etc 13 ZADCO and ICDL extend their 3-year partnership with accrediting a remote offshore ICDL centre in ZIRKU Island Under the auspices of his Excellency Mr. Saif Al Suwaidi, Mr. Bader Al Mansoori, ZR AGM, inaugurated ZIRKU ICDL Testing & Training Center on 17th March 2010. This ceremony was attended by Messrs. Jamal Al Amari ZR Site Manger, Mustafa Sayar MD manager, Ali Al Mehrezi MDTE Team Leader, Okasha M. Okasha ZADCO ICDL Coordinator and ZR Team Leaders. In his speech, Mr. Bader emphasized the importance of having an ICDL Center in ZIRKU. Then, Mr William Curry ZR Training Center, gave a brief overview of the Center. On this occasion, Mr. Jamal Al Amari was registered as the first ICDL student and given a user name and a password. The occasion marked the extension of ICDL provision in ZADCO to the offshore community. It is expected that many offshore-based personnel will take advantage of this new opportunity. Office Administration Etiquette Workshop in Zirku Having completed 14 successful sessions of Office Administration Etiquette Workshop in ZADCO main office, MDTE decided to share this success with ZIRKU site based office administrators. Two sessions were conducted in Zirku. The first was on 5th April and the second was on 25th April 2010 which was opened by Mr Faisal AL Haram, Zirku Site Manager. Mr Faisal gave words of support and encouragement to the participants. The workshop aims and objectives are to: · Enhance communication skills and work relationships. · Build the skills of such a professional workforce in order to project the image of the company in the wider business community. · Nurture the various roles and activities of our targeted candidates including their business understanding, etiquette, and professionalism as well as their language skills and style. So far, the participants appreciated the value of the workshop presented to them and expressed that they would appreciate more frequent trainings and updates. The staff were encouraged to open up and share ideas with the instructor for future training plan. The workshop was delivered by MDTE/ELTU Team Mrs. Hekmat Bani Hashem and Mr. Okasha M. Okasha. Training & Testing: • Learners can work at their own pace and there is no time limit as to when all the modules should be completed. The modules can be done and tested in any order. • Learners will do the course independently. They will be given access to an on-line training course that is available in the ZIRKU ICDL Testing & Training Center which has 5 PCs specifically equipped for this purpose. In addition, learners are provided with course material for the seven modules. Furthermore, learners will have access to online “ICDL Primer Tests” in reparation for the official tests. • Finally, learners will be tested on-line after they are confident that they have mastered any of the seven modules. Assistance with this will be given by the Zirku based MDTE-ELTU instructors who are both Certified ICDL Training Professionals. What is the ICDL? The ICDL certificate is an internationally accepted certificate of accreditation that confirms that the certificate holder has knowledge of the basic concepts of Information Technology (IT) and can use a PC and some common computer applications at a basic level of competency. The certificate acknowledges that the holder has successfully completed and passed tests on seven modules which evaluate his knowledge of and his competence in using a computer. The first module is theoretical and tests a candidate’s knowledge of Registration: Are you interested in becoming a certified computer driver? Just visit the ZADCO ICDL Testing & Training Center which is located in the ZIRKU Training Center. You only need to provide the instructors with your photograph and a copy of your passport. You will then be provided with your course user name and password. Learners, who require any further clarification, are requested to contact Messrs Patrick Kirwan and William Curry, ZIRKU English Instructors, on ext. 55922 or Okasha M., Sr. English Instructor, on ext 52729. zadco March - april 2010 Information Technology. The remaining six modules test a candidate’s competency in using a PC and some common and useful computer applications. A candidate must pass all these seven modules in order to be awarded the certificate. 14 INSIDE ZADCO Office Administration Etiquette Workshop in Zirku H aving completed 14 successful sessions of Office Administration Etiquette Workshop in ZADCO main office, MDTE decided to share this success with ZIRKU site based office administrators. Two sessions The workshop aims and objectives are to: · Enhance communication skills and work relationships. · Build the skills of such a professional workforce in order to project the image of the company in the wider business community. · Nurture the various roles and activities of our targeted candidates including their business understanding, etiquette, and professionalism as well as their language skills and style. So far, the participants appreciated the value of the workshop presented to them and expressed that they would appreciate more frequent trainings and updates. The staff were encouraged to open up and share ideas with the instructor for future training plan. The workshop was delivered by MDTE/ELTU Team Mrs. Hekmat Bani Hashem and Mr. Okasha M. Okasha. were conducted in Zirku. The first was on 5th April and the second was on 25th April 2010 which was opened by Mr Faisal AL Haram, Zirku Site Manager. Mr Faisal gave words of support and encouragement to the participants. new group of employees join zadco A group of new employees joined recently ZADCO, out of them many UAE Nationals were absorbed to work in different sites and experience the planned training in connection with their jobs. This practice reflects the continuous success of the Emiratisation policy adopted by ZADCO. Yousef Bin Took Fahed Salem Omar Al Khanji Mohamed Bani Hashem Ahmed Mohamed Saeed Abdulla Al Hammadi Ahmed Al Tenaiji Ali Al Hosani Abdullah Al Shehhi Saif Al Ali Erhama Al Shamsi Work Location Abdulrahman Abdouli Sami Al Darmaki Jamal Al Mehairbi Naser Al Sayabi Name Work Location Name Work Location Name Sami Al Darmaki UZFDR-PE Saif Al Ali ZEMS Yousef Bin Took LGL / Zirku Island Naser Al Seyabi ITTN-ZR / Zirku Abdulrahman Abdouli UZHSE Fahed Salem ZRGMWW Ahmed Al Tenaiji SASM / Satah Jamal Al Mehairbi ZRPRD Mohamed Bani Hashem UZCM Abdullah Al Shehhi ITSS-IS Omar Al Khanji UZCP Ahmed Al Hefaity UZCM Erhama Al Shamsi UZWO-DCEC Abdulla Al Hammadi CPDP Ali Al Hosani UZCP 15 Corporate Social Responsibility Public Relations Department organized a number of social activities and hosted some activities reflecting the company’s commitment to corporate social responsibility concept and the national companies’ role in supporting educational, social and sports life in the UAE. ZADCO organises Education Fair for Abu Dhabi Highschool students As part of its Corporate Social Responsibility Zakum Development Company (ZADCO) organized an Education Fair included promotion booths for different Educational institutions from the UAE. The Fair was inaugurated on March 17th, 2010 at Sheikh Khalifa Energy Complex – Abu Dhabi in the presence of ZADCO GM Mr. Saif N. Al Suwaidi, ADCO GM Mr. Abdul Munim S. Al Kindy, GASCO CEO Mr. Mohamed Sahoo Al Suwaidi , a number of ADNOC Group Managers, VIP’s from the Education sector, ZADCO GMT Members and a number of Employees and guests, who toured around the fair and had a brief about the opportunities given from the Educations institutions to the UAE students. The Opening Ceremony included a film titled “ZADCO… work and Life” which shows how the off shore employees of ZADCO are distributing their time between work, training, sports and entertainment. Then an address was presented by Mr. Ahmed Faraj Al Ardi Manpower Development Standards and Performance Team Leader included a briefing about ZADCO’s efforts in the continuous improvement of its Manpower Development schemes. Mr. Saif N. Al Suwaidi opening the Fair with Mr. Abdul Munim S. Al Kindy and Mr. Mohamed Sahoo Al Suwaidi The participating Educational Bodies are: Ministry of Higher Education and Science research, UAE University, Zayed University, The Petroleum Institute, ADNOC Technical Institute, Higher Colleges of Technology, Masdar Institute of Science and Technology, ADNATCO and NGSCO Program, ExxonMobil Program, Emirates Institute for Banking and Financial Studies, Ajman University, Al Hosn University, SORBONNE Abou Dhabi, American University of Sharjah and AMIDEAST. The Education Fair received guests for 8 days from 1727 march 2010 where its scheduled to receive 300 Students per day from Abu Dhabi Educational Zone Schools, in addition to ADNOC Group employees. Part of the Fair zadco March - april 2010 16 SOCIAL CSR coordination meeting ZADCO Public relations Deparment hosted the first CSR coordination meeting for ADNOC Group companies in the presence of representatives from ADMO-OPCO, ADGAS, GASCO, NDC and Firtil. The Meeting was started with an overall presentation about CSR concept in general conducted by Mr. Alejandro Velasco from ZADCO BPOD department. Followed by a presentation from Mr. Ibrahim Al-Shahrani from ADMA-OPCO who shared ADMA’s experience in CSR with the audience. Wrapping up the activity, Mrs mariam Al Kaabi from ZADCO PR presented the steps needed to move toward CSR and opened the floor for discussions and questions. In the end, all participants thanked ZADCO for this initiative and urged to continue this effort in order to develop a unified CSR concept within ADNOC Group of companies. CSR Meeting in session Russian Egyptian Circus Trip ZSRC held on Saturday, 17th April.2010 a trip for employees and their families to the Russian-Egyptian Circus, on khalifa Entertainment Park, this circus included a number of exciting and unique shows such as plying with lions, dancing ,Tightrope walking ,acrobat, fire eater, climbing and reviews on air. The Trip began at 2 pm next to ZADCO main Building and launched on the garden, the show began at 3:00 pm. After the end of the show the group assembled for lunch, then every one enjoyed events held inside the park ( Bazaar, electronic games for children, etc ...) Everyone enjoyed a happy and funny time as the trip ended at 8:00 pm. Aerobics for Women ZSRC organized for health and fitness of their women employees Aerobics Classes in Al- Husn Club on Monday and Wednesday afternoon, registration opened for one week so classes started on 10th May and will continue for 2 months. We hope that women will enjoy classes and wish them a lasting health and fitness. Mr. Alejandro Velasco breifing about the CSR concept from February to May 2010 in Al- Husn Club. ZADCO Social Committee organized an honoring ceremony for Koran’s students and teachers on Saturday morning, 8TH May.2010 on ZADCO Theater. Mr. Hussien Khoury head of ZADCO entertainment and sports committee opened the ceremony followed by a welcome speech from Ms. Mariam Al Kaabi, Director Of The Social Committee. The ceremony began with a Koran verses recitation made by s Pre-eminent students, followed by a song made by girls pupils of the sessions after that Mr. Hussein Khoury distributed certificates and prizes for excelled students and the holders of good and very good degrees. Recognition for The Holy Quraan lessons participants In recognition of our beloved children for their efforts to participate in the sessions of Koran Conservation held 17 Contractors’ GM Meeting The Sixth annual ZADCO Contractors Communication Meeting was held on 21st April, 2010 at Le Royal Meridian - Abu Dhabi under the theme “Sustainable Growth, ZADCO and Contractors”. The attendees included members of ZADCO’s General Management and Extended Management Team, Team Leaders, as well as General Managers and senior members from the company’s main contractors. The event theme was selected by ZADCO management with the objective of brining more focus on the issue of sustainable development. Sustainability is based on three pillars: Environment, Society and Economy. In light of the major developments that ZADCO is undertaking in the coming years, it is essential that all three aspects are factored in the manner with which operations are conducted and business needs are Mr. Abdul Hakim Al Muflehi zadco March - april 2010 planned. Mr. Badr Al Mazroei with the ZADCO HSE department introduced the meeting objectives and the contributions by the presenters that will shed more light on the concept of sustainability. In his opening speech, Mr. Hilal Al Mansouri, AGM-TO and General Management representative, welcomed the contractors to the meeting and emphasized the 18 Mr. Ihab Tarmoum addressing the meeting importance of the partnership between both ZADCO and its contractors. Mr. Hilal also stressed that all operations and activities have to be carried out in compliance with ADNOC codes of practice and HSE management system. Mr. Abdul Hakeem Al Muflehi, HSE Manager, highlighted the excellent HSE performance during 2009 and thanked the contractors for their contribution and role in meeting targets. Mr. Abdul Hakeem also pointed out the excellent efforts made by contractors towards taking the lead in enhanced HSE performance and stated that this is an essential shift in attitude towards HSE which will result in a continued outstanding HSE performance. Ms. Samar Al Hameedi with ZADCO’s HSE department, presented a brief overview on the concept of sustainable development with focus on the benefits of incorporating sustainability thinking at a corporate level. Ms. Samar also highlighted ZADCO’s achievements to date including the Sheikh Khalifa Excellence award that indicate ZADCO’s success in addressing the various elements of sustainability. The presentation ended with a reminder for all attendees to build on such collaborative meetings to achieve a knowledge sharing forum and further enhance ZADCO and contractor relationships. Schlumberger participated in the event by sharing their experience in establishing corporate systems that have supported the organization in achieving their Deputy General Manager presenting the contractors awards Mr. Hilal Al Mansouri Ms. Samar Al Hameedi sustainability goals as well ongoing initiatives to develop tools that will help the company and its employees manage business needs in a sustainable manner. The final presentation of the day was given by Mr. Ihab Tarmoom, ADGM-UZOS, on ZADCO’s main development project, UZ-750. Mr. Ihab provided the attendees with a brief overview on the project concept as well as insight into the technical aspects of the project that will help ZADCO effectively achieve sustainable production for the coming years. The presentation also included the steps taken to date to ensure that environmental, economic and social aspects of the project were given due consideration. Mr. Ihab also touched upon potential opportunities for contractors to contribute in meeting project requirements. The meeting was concluded with ZADCO management presenting the ‘HSE Best Performance Award’ to contractors who have demonstrated improved HSE performance in 2009. 19 Physical Fitness Campaign Z ADCO HSE Department, General Support Department Medical, in coordination with Public Relations Department organized during April 2010 a two day Physical Fitness Awareness Campaign at Sheikh Khalifa Energy Complex included a number of activities started with a lecture about physical fitness and cardiovascular health titled “Work with Heart” by Dr. Sherif Zoheir Bakir, Consultant Cardiology and Section Head of Cardiac Non Invasive Lab at Sheikh Khalifa Medical Center. Following that Dr. Karl LaRowe and Dr. Emel Sheikho from American Center for Psychiatry and Neurology presented a lecture about physical fitness as a tool for stress management and another about smoking and physical fitness. In between the lectures a fitness team from Life Line presented number of warm up exercises and routines in participation with the audience. ZADCO hosted during the Campaign an exhibition for a number of physical fitness providers and healthy life style companies in addition to free on-thespot check ups for blood pressure, sugar, LDL cholesterol and others for all the campaign participants provided by Khalifa medical Center volunteers staff which included 25 nurses and doctors. zadco March - april 2010 20 HSE FOCUS The Marawah Marine Biosphere reserve Prepared by: Salman Mohamed Salman Petrographer - SUFD / ZADCO Marawah marine area is situated west of Abu Dhabi Island. It is surrounded by Abu Al Abyad Island from the east, Seir Bani Yas Island from the west, a highly coastal line from the south, and Jarnain Island from the north. There are several islands in the area including Marawah, and Bu Tinah. The overall area of the Marawah MPA is 4255 km2. It includes all the islands as well as the shallow area. B u Tinah island/ shoal attracted the interest of many Geoscientists since 1970. Furthermore ZADCO/ SUFD in 2008 used this island as an analogue to characterize UMM Al Dalkh field reservoir in the sub surface due its unique shape (arcuate/ crescent) that resulted from the interaction of sediments, wind and waves. Further its resemblance Mishrif reservoir. Two papers I published using this island one in 2009 in the SPE and in 2010 in SPWLA conference. inactive and probably predates the formation of the “bull’s horn” barrier and lateral sand tail complexes. Bu tuniah Shaol exemplifies an advanced stage of sedimentary development on the shallower highs, Its barrier system is virtually complete and has resulted in the development of lagoonal environment on the crest of Brief description of the Island The bathymetry of Bu Tinah Shoals relatively wide (15-20km) high is swept by wind driven waves along its reef- fringe, NNW periphery ( Purser 1973). Bioclastic sand transported down-wind has created an arcuate “bull’s horn” barrier which is locally emergent and stabilized both by submarine and beach rocks lithification. This barrier encloses a shallow, muddy lagoon. This shoal barrier separate coarser Coral/algal sands on its windward side from pelletoidal sands on its lee. The later grade into carbonate muds which occupy minor depressions on the crest of the high. The environment leeward’s of the barrier bar complex may be termed “ lagoon”; they occupy the greater part of this flat-topped high. The Bu Tinah barrier bar complex extend downwind as a pair of sediment tails. Each tail is a complex of bars whose long axes are oriented subparallel to the axes of the tail ( parallel to the dominant NW wind). Together with the barrier system, they enclose the crestal lagoon on three sides (fig-2). A poorly developed sand tail extends southwards from the high, but is seemingly the high. Carbonate muds thus extend across the topographic culmination and form tidal flats only 2-3 KM leeward of the reef complex. The wide high of Bu Tinah shoals offers sufficient protection from the “Shamal” wind to permit widespread deposition of muddy sediments in the downwind for distance of up 15 km. Thus, the leeward carbonate sand tails that characterize many small highs less than 5 km in diameter 21 HEALTH STrOKE Prepared by: Dr. Khaled Kayed Medical Team Leader / ZADCO Stroke refers to acute neurologic impairment that follows interruption in blood supply to a specific area of the brain. There are 2 major type of strokes. 85% of all strokes is usually caused by an occlusion of an artery to a region of the brain and 15% of all strokes occurs when a blood vessel in the brain suddenly ruptures into the surrounding tissue. E ach year in the United States about 700,000 people suffer a new or WARNING SIGNS AND SYMPTOMS: repeated stroke. About 1 in 15 deaths in the United States is • Sudden weakness or due to stroke. numbness of the face, arm, or let, especially on one side of the Early recognition of acute body ischemic stroke is important • Sudden confusion because treatment must be • provided within 3 hours of onset understanding of • Sudden trouble seeing on one symptoms. Most strokes Trouble speaking or occur at home, and stroke or both eyes patients often deny or try to • Sudden trouble walking rationalize • Dizziness or loss of balance or their symptoms. Even high-risk patients, such as coordination those with atrial fibrillation or • Sudden severe headache with hypertension, fail to recognize no known cause the signs of stroke. This delays STROKE ASSESSMENT TOOLS: treatment, resulting in increased mobidity and mortality. Community and professional education is essential, and it has been successful in increasing the proportion of eligible stroke victims treated. minimize brain injury and maximize the patient’s recovery. zadco • Facial droop (have the patient smile or try to show teeth) • Arm weakness (have the patient close eyes and hold both The goal of stroke care is to March - april 2010 Facial Droop arms out) • Abnormal speech (have the One side motor weakness (Right Arm) patient say, “You can’t teach an old dog new tricks”) 22