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Oil and Gas Facilities and Pipelines
Delivering revenue, logistics and
sustainability in challenging locations
To avoid venting gas into the atmosphere, KBR along with In
Salah – a joint venture between Sonatrach, BP and Statoil –
designed facilities in Algeria to capture carbon dioxide and inject
it into a brine formation a mile below the surface.




 2
Delivering Complex Logistics and Swift Revenue Streams




                                                                                                                                             Onshore Facilities and Pipelines
     As hydrocarbon resources become scarce, national and integrated oil companies rely on
     their engineering, procurement and construction (EPC) contractors to deliver constructability,
     operability, safety and cost savings through engineering design. Extreme climates and
     remote locations present major execution, logistics and environmental challenges. These
     implementation risks raise important questions:

     	 •	 Is the project timeline realistic and feasible to predict revenue streams?
     	 •	 How will you confidently balance logistics, safety and sustainability?
     	 •	 Which issues are likely to become threats to project success?
     It’s one thing to understand the issues that affect risk. It’s another to foresee and solve them.
     With over 30 years of project successes, KBR mitigates risk from project concept, to design
     and through every detail of your implementation.
     Many companies recognize the issues that create risk. Few anticipate and resolve them.
     With over half a century of upstream oil and gas success, KBR mitigates risk from project
     concept to FEED to every detail of your implementation and beyond.

   Choosing High-Performance Technology
     Getting solutions that move your company’s projects ahead without locking into an EPC
     contractor that only uses proprietary technology is tricky. Project execution today requires
     international companies with global engineering capabilities, systems, procedures and
     communications to match the right process technology to your upstream facility or pipeline
     needs. While we have a number of proprietary technologies that outperform competitive
     solutions in terms of reliability and cost-effectiveness, we are neutral when it comes to
     technology and can work with nearly all licensors and equipment suppliers.




   Understanding client needs and offering            Overseeing rigorous process simulation, modeling, feasibility studies, process
   innovative solutions that reduce risk in onshore   optimization and early production design and procurement support has granted KBR
   and pipeline projects across the globe is a        a reputation of solving “first of its kind” challenges.
   differentiator that KBR brings to every project.



                                                                                                                                         3
Visualizing the most efficient, cost effective
and environmentally sound project is how KBR
approaches every project.




 4
Maintaining Cost and Schedule




                                                                                                                 Onshore Facilities and Pipelines
 Risking a massive onshore facility or pipeline project by contracting with an inexperienced EPC
 outfit could cost your reputation. The fact is that the criteria affecting your ability to achieve
 monthly objectives depends on getting systems and a strong EPC team aligned with your vision
 and focused on your goals. KBR will assemble the right team to meet your production targets
 and local requirements. Proactively trending construction materials and equipment occurs early
 in our projects and continues during design through procurement, shipping and installation
 with our proprietary Integrated Project Management System (IPMS). Esso Exploration and
 Production chose KBR when needing an EPC company to generate four times Chad’s existing
 power supply in the Chad - Cameroon Development Project.

Managing Execution Risks
 With fast-tracked timetables, environmental        and field development in an environmentally
 compliance and tight capital budgets, KBR’s        sensitive area. Operating in rain forests and
 effective project management takes you             national preserves with no infrastructure, our
 seamlessly from an initial idea to revenue         team delivered a feasibility study and FEED.
 stream. Averting risk during concept,              The project also included reservoir description,
 feasibility, front-end engineering and design      field exploitation plans, well construction, field
 (FEED), detailed design, construction and          water separation, connector pipelines, central
 commissioning is an area in which we are well      processing facilities, export pipelines, pump
 equipped. For example, Perez Companc turned        stations and reception facilities.
 to KBR when they needed complex logistics

Putting Safety First
 Creating an organizational climate that            OHSAS 18001 certifications, and continue
 practices safe behavior, rewards safety            our world-class record of training. Achieving
 performance, records lost time incidents           project success means continuously
 (LTI) and minimizes environmental and social       improving safety records and removing
 impact is a differentiator when choosing an        health and environmental hazards that could
 EPC contractor. Each year our commitment           stall production. Further proof of our pledge
 to health, safety and the environment is           to put safety first includes achieving over
 evident as we implement proven standards           32 million hours on the Chad - Cameroon
 and processes, hold ISO 9001, ISO 14001 and        Project without an LTI.

                                                                 Having one of the best safety records
                                                                 in the industry and a solid reputation of
                                                                 managing resources shows why
                                                                 companies like Shell, BP and Chevron
                                                                 come to us for repeat business.




                                                                                                             5
From initial conceptual studies, FEED and construction,
KBR has contributed to every phase of the In Salah Gas
Development project, adding to the company’s 30-plus
year project experience in Algeria.




 6
Rejecting Proposals Built on Promises




                                                                                                                                                 Onshore Facilities and Pipelines
     More than likely you have received                                     expertise, training, logistics, execution and
     proposals that seem too good to be true.                               exceptionally high safety record, there is
     To put matters into perspective, loss of                               really no comparison. For example, many
     production from just one missed project                                of the capabilities outlined earlier prompted
     milestone easily outweighs the perceived                               BP to choose KBR when needing EPC
     savings promised by a low-bid contractor.                              services for seven natural gas fields at the
     Bids from KBR are competitive, so when you                             In Salah Gas project in Algeria.
     evaluate and weigh our quality personnel,

   Creating Jobsite Employment Opportunities
     Leading EPC companies create job                                       communities. Not only do we oversee
     opportunities in the areas where they work                             thousands of workers at project sites, our
     to enrich and sustain local communities.                               local content numbers are significant. For
     Besides holding a notable safety record, the                           example, KBR managed a peak construction
     contractor you hire needs experience training                          workforce of over 10,000 on multiple sites
     workforces of all sizes and must have in-                              during the Chad – Cameroon project in
     depth understanding of cultural issues to                              Africa, and helped create new service
     work well with various governments and                                 companies in Chad.


Balancing logistics, reducing emissions and
safeguarding lives is how we operate on a daily basis




   Chad-Cameroon, In Salah, In Amenas and numerous other massive          Partnering with our clients, KBR’s vision and planning in FEED
   desert projects show how KBR has the expertise, negotiating power      packages provides a state of readiness for final designs, a
   and flexibility to match materials and services to your vision, cost   measure of accuracy for capital budgets, successful developments
   and schedule needs.                                                    and on-time profitable production for our clients.




                                                                                                                                             7
Commercial residuum oil supercritical extraction (ROSE®)
units have demonstrated overall savings of up to 50 percent
compared to conventional solvent-extraction processes that
use evaporation, compression and condensation.




 8
Delivering Successful Outcomes




                                                                                                               Onshore Facilities and Pipelines
   Deploying tools, systems and procedures globally combined with our advanced project
   management software allows for borderless work sharing and increases the success of your
   project. Ensuring that standards and project requirements are aligned with your vision, our
   experts communicate and monitor progress using business execution tools such as IPMS,
   project portals, 3D conceptual engineering, project dashboards, geographic information
   systems and object engineering. For example, our experts relied on extensive project
   management tools to communicate work progress while working on Agip Kazakhstan
   North Operating Company’s (Agip KCO) Kashagan onshore/offshore project located in the
   seasonally ice-bound North Caspian Sea.

  Processing, Upgrading and Transporting to Compete
   The high cost of light sweet crudes is         our differentiated resid processing and
   forcing refiners to invest in bottom-of-       upgrading technologies that include our
   the barrel processing, upgrading and           patented ROSE, coker and visbreaker
   conversion capabilities to be competitive.     technologies. Managing the handling,
   Stringent environmental requirements           treatment, removal and disposal of sour
   and a dwindling supply of quality crudes       gas at sites in the Gulf of Mexico, the
   make upgrading a logical choice. Offering      Caspian Sea, Asia and North Africa allow us
   economic and efficient solutions to process    to provide in-depth solutions to low-quality
   and transport difficult crudes, KBR is a       gas and crude.
   leader in heavy oils and tar sands through


Designing and constructing major processing plants
on schedule with an exemplary health, safety and
environmental record is a KBR differentiator
                                                 Not only did KBR create and globally deploy our Program
                                                 Management Suite in six months while delivering project
                                                 management for over 20 major contracts in Agip KCO’s
                                                 drilling and production project in Kashagan, we also
                                                 scoped and deployed the initial phase of the project’s
                                                 Integrated Management system simultaneously.




                                                                                                           9
Desert/Arid Regions




 Rapid execution and no disruption to operations during
 onshore and pipeline projects result from our comprehensive
 in-plant work knowledge.




 10
Delivering Unique Solutions in Desert/Arid Regions




                                                                                                                    Onshore Facilities and Pipelines
 From dealing with moving sand dunes to the creation of new water sources, projects in
 arid regions require tailored solutions. As engineering, procurement and construction
 management (EPCm) contractors for desert projects, we develop and design detailed
 environmental management plans including solid waste disposal systems, wastewater and
 dust mitigation among others. Providing logistics for equipment and materials, hiring and
 training local workforces in remote locations, our experts streamline processes, institute
 comprehensive health and safety programs and utilize businesses and suppliers near
 worksites to boost local economies.

Mitigating Complex Logistics in Chad and Cameroon
 Esso Exploration and Production turned to       an oil and gas gathering system to produce
 KBR to build a power plant that would meet      one billion barrels of crude over 25 – 30
 the needs of a growing population and           years. Limited infrastructure, complex
 generate four times the country’s existing      logistics and multiple sites covering 1,400
 power supply. Through FEED and EPC, KBR         square kilometers made developing oil
 met this challenge by hiring a workforce        reserves in Chad and exporting it to the
 greater than 10,000 representing more           Atlantic coast of Cameroon a challenging
 than 10 nationalities to deliver a 120 MW       undertaking. ExxonMobil acknowledged the
 power plant. Project execution involved         schedule and performance on this project,
 constructing numerous systems and               and as a result honored the team with
 facilities in both Chad and Cameroon, and       “Safe Contractor of the Year” award.

Delivering Extensive Geological Reconnaissance at In Amenas
 BP/Sonatrach enlisted KBR to provide FEED       team to build a ground model that depicted
 and full EPC services for a gas production      geotechnical properties of the pipeline
 project at the In Amenas region of southern     route. This capability alone prompted
 Algeria. Covering an area greater than 1,000    BP/Sonatrach to choose KBR and JGC
 square miles, the project team delivered full   when needing FEED and EPC for a gas
 facility scope of work from the wellhead to     development project that spanned four
 the tie-in with the gas transmission line and   production fields. Besides delivering the gas
 this includes all supporting infrastructure.    gathering facilities, our JV also delivered
 Extensive geological reconnaissance of soil     the pipelines and infrastructure including
 and ground conditions enabled our project       roads, accommodations and offices.

                                                               Integrating construction and commissioning
                                                               activities is one way KBR provides better
                                                               installation with fewer punch list items once
                                                               your project is complete.




                                                                                                               11
Creating the infrastructure to make remote projects feasible
often means turning an isolated landscape into a working
town complete with everything from running water to
satellite communications.




12
Injecting CO2 beneath the Surface at In Salah




                                                                                                                                                      Onshore Facilities and Pipelines
  BP chose KBR to deliver FEED, full EPC                                   100,000 tons of freight in 4,500 truck
  services, infrastructure and construction                                movements covering nine million
  management for the largest dry gas project                               kilometers. In Salah is the largest dry-gas
  and export pipeline in Algeria. The gas                                  joint venture in Algeria, and has one of
  facility spans four main sites across seven                              the largest CO2 sequestration systems in
  natural gas fields covering 23,000 square                                the world. To avoid venting gas into the
  kilometers south of Algiers. The project team                            atmosphere, KBR and JGC along with
  designed this gas gathering and export                                   the joint venture between Sonatrach, BP
  project for 850 million square cubic feet                                and Statoil—designed facilities to capture
  per day (scfd). Some of the challenges of a                              carbon dioxide and inject it into a brine
  project of this scale included transporting                              formation a mile below the surface.




On-stream since July 2004 with the help        Delivering the FEED and full EPC of the world’s first full-scale carbon dioxide capture project
of KBR and its joint venture partners, In      at a gas field, KBR and it’s joint venture partners are helping the environment by making it
Salah Gas project produces around nine         possible to inject about one million tons of CO2 into a reservoir each year.
billion cubic meters of gas per year.




In Salah Gas, the largest dry gas joint-venture project in Algeria, involves the development of seven proven gas fields in the southern
Sahara, 1,200km south of Algiers.



                                                                                                                                                 13
Arctic/Cold Regions




 Designing, building and managing every type of onshore oil and
 gas development project from the equatorial forests, river deltas
 and deserts to the Arctic has enabled KBR to deliver complex
 logistics and resolve risks that impede revenue streams.




  14
Addressing Complex Cold-Climate Conditions




                                                                                                                   Onshore Facilities and Pipelines
 Module and subassembly prefabrication, thermal protection for personnel and equipment
 and electrical heat tracing on exposed lines are a few of our solutions to cold weather
 challenges. Designing cold-region facilities based on our environmental philosophy of
 zero discharge to protect delicate tundra vegetation and marine environments is a KBR
 differentiator. In terrestrial environments, we typically construct facilities when soil is frozen.
 Another safeguard we take in environmentally sensitive areas is to design onshore facilities
 on engineered gravel and sand pad foundations.

Delivering Project Management in Kashagan
 Agip KCO chose KBR to deliver FEED                        export pipelines. The team developed and
 and project management for an onshore/                    delivered web-enabled global information
 offshore development of a high-pressure,                  management systems to provide
 sour oil and gas field. Kashagan is one of                consistency in standards, plans, processes
 the larger discoveries in this decade with an             and procedures. With over 20 major
 estimated 30 billion barrels of oil. The project          contracts with teams around the world,
 is located in shallow and environmentally                 we verified compliance using our program
 sensitive water, and required drilling and                management systems. Planning took into
 production islands with several inter-field               account that the North Caspian Sea is
 pipelines, pipelines to shore, onshore                    icebound during winter months.
 processing facilities and terminal and

                                                                                         Safeguarding
                                                                                         lives, communities
                                                                                         and environments
                                                                                         where we operate
                                                                                         is a fundamental
                                                                                         principle that KBR
                                                                                         embraces.




                                    Community involvement at
                                    KBR takes many forms either
                                    by training local work forces,
                                    hiring local vendors, preventing
                                    infectious diseases or even
                                    constructing schools, roads
                                    and medical clinics in some
                                    cases near project sites.




                                                                                                              15
Helping oil and gas companies monetize their energy resources
is a well established KBR strength.




16
Optimal Arctic Design for Mackenzie Delta in Canada




                                                                                                       Onshore Facilities and Pipelines
 When Imperial Oil Limited needed to             processing and separating facilities. This
 engineer a 30-inch diameter pipeline            project included conceptual and preliminary
 spanning 1,220 kilometers from the              engineering and the initial design capacity
 Mackenzie Delta to just north of the Alberta,   consisted of 1.2 billion cubic feet per
 Northwest Territory border, they turned         day (cfd) expandable to 1.9 billion cfd.
 to KBR. This immense project will gather        Additionally, the project required an Arctic
 natural gas and natural gas liquids (NGLs)      design and permanent infrastructure
 from three onshore natural gas fields           including access roads, airstrips, helipads
 including gathering pipelines, natural          and communication systems to support
 gas and NGL trunk lines and associated          construction and operations activities.

                                                               Whether it’s commercializing
                                                               remote natural gas reserves or
                                                               creating the infrastructure to
                                                               produce hydrocarbon reservoirs
                                                               onshore, KBR has the expertise
                                                               and experience to help customers
                                                               derive the greatest value from
                                                               their assets.




                                                                                                  17
By providing a full complement of engineering, procurement, construction
and commissioning/start-up (EPC-CS) services, we continue to develop
innovative technologies and project execution methods, enabling us to
deliver facilities in some of the most challenging environments on earth.




  18
Upgrading the Karsto Development in Norway




                                                                                                                                                   Onshore Facilities and Pipelines
  Statoil chose KBR’s subsidiary, MW Kellogg, when they needed detailed engineering to
  upgrade and develop their gas treatment facility in Karsto, Norway. Karsto is a hub for gas
  production from 30 large and small fields in the North Sea and Norwegian Sea. Statoil
  awarded the contract to KBR’s subsidiary on behalf of Gassco and Gassled. Besides detailed
  engineering, the upgrade contract calls for assistance in procurement and construction.
  The upgrade will allow the complex to send more gas through the Europipe II pipeline to
  Dornum, Germany. By improving regularity and flexibility, the facility will operate with
  greater efficiency. KBR through MW Kellogg was the main contractor on three previous
  major expansions at the Karsto facility, and has worked with Statoil for a quarter century.




Improving efficiency of operations, conserving natural resources,   The Karsto gas treatment facility in Norway is another example of KBR’s
safeguarding lives and reducing emissions is how KBR operates on    ability to design and construct major processing plants on schedule and
a daily basis.                                                      with an exemplary health, safety, and environmental record.




                                                                                                                                              19
Jungle/Tropical Regions




 Development of onshore and pipeline facilities start with KBR
 designers and engineers’ visualization of the most hyper-efficient,
 cost-effective and environmentally sound project.




 20
Mitigating Environmental Challenges in Jungle/ Tropical Regions




                                                                                                        Onshore Facilities and Pipelines
   Few EPC companies can deliver fast-track development in rain forests without roads or
   pipeline networks. This handful shrinks when environmental restrictions are extensive
   and indigenous groups must approve land use agreements for development. Overcoming
   access issues, lack of infrastructure and environmental challenges such as preserving
   native tribal hunting grounds, national parks and tree canopies has made us part of a select
   group of EPC companies that deliver oil field and central processing facilities in rainforest
   environments successfully.

Recommending directionally drilled pipelines for
river crossings is one way KBR helps minimize
adverse effects to the environment
  Expanding the Highlands Gas Development
   The project required completing the FEED         as improvements to existing site
   for a 700 million scfd gas processing facility   structures including base camp, loading
   for ExxonMobil’s subsidiary, Esso Highlands      dock bulkheads and the expansion of
   Limited, in Papua New Guinea. Besides            warehousing, helicopter landing facilities
   delivering the FEED for the future liquefied     and a nearby airfield. Some of the risks
   natural gas (LNG) facility, the project team     encountered on this project included
   designed a gas gathering system, a 26” gas       safeguarding personnel and equipment
   export pipeline, additional facilities as well   against fast flowing rivers.

                                                             Navigating the logistics of buying,
                                                             shipping and controlling a massive
                                                             amount of equipment, materials and
                                                             people are areas where KBR has
                                                             earned a solid reputation.




                                                                                                   21
Choosing KBR has helped numerous integrated and national oil
companies improve their country’s future through technology
transfer, sustainable development and swift monetization of
natural resources. Why wait?




22
Upgrading Facilities while Negotiating Difficult Terrain in Cusiana and Cupiagua




                                                                                                            Onshore Facilities and Pipelines
    BP turned to KBR when they needed EPCm for process facilities, well pads and a gathering
    system at Cusiana and Cupiagua, two of the largest oil fields in Colombia. Besides EPCm,
    the project called for crude oil production, gas re-injection and water disposal. Located in the
    eastern Andes foothills, the dual fields are the largest discovery in the Western Hemisphere
    in 20 years and largest in the 80-year history of the Colombian oil industry. The project team
    upgraded the central processing facility (CPF) at Cusiana from 185,000 to 320,000 barrels of
    oil per day (bopd), and developed the Cupiagua CPF greenfield site to process 200,000 bopd.
    The project team successfully negotiated difficult terrain, including a 10,000-foot elevation
    pipeline crossing of the Andes Mountains and five major drilled river crossings in addition to
    establishing security and work practices in a challenging region.


Meeting strict environmental, permitting and access
requirements are several challenges we face when
executing onshore and pipeline projects
   Largest Diameter Gas Transmission Pipeline in Cross-Island Project
    Trinidad National Gas Company relied              compression) and is the largest diameter
    on KBR for EPCm for a 77-kilometer gas            gas transmission pipeline thus far in the
    transmission pipeline that spans the island       Western Hemisphere. The project overcame
    of Trinidad from Beachfield to an LNG             a number of challenges with respect to
    facility on the island’s southwest coast. The     confined right-of-way, adjacent pipelines,
    56-inch-diameter pipeline transports up to        swamps and routing through existing plant
    3.85 billion scfd (2.4 billion scfd without       areas.

   Generate Revenue Stream. Manage Logistics. Deliver Sustainability.
   Maintain Schedule.
    Experience delivering revenue streams quickly following construction of complex facilities in
    harsh, remote environments is a benefit that KBR brings to every project. Mitigating risk on
    your multi-billion dollar onshore facility and pipeline project is how we help you derive the
    greatest value from your assets. Ingenuity in designs, flexibility in approach and confidence
    in execution are three reasons so many companies turn to the industry expert for safe,
    environmentally friendly EPC: KBR.




To learn more, visit: kbr.com/onshore or contact onshore@kbr.com
                                                                                                       23
www.kbr.com
www.kbr.com
©2008 KBR, Inc.
©2008 KBR, Inc.
All Rights Reserved
All Rights Reserved
Printed in U.S.A.
Printed in U.S.A.
070274 2/08
K08087 4/08
080018




                      www.kbr.com

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  • 1. Oil and Gas Facilities and Pipelines Delivering revenue, logistics and sustainability in challenging locations
  • 2. To avoid venting gas into the atmosphere, KBR along with In Salah – a joint venture between Sonatrach, BP and Statoil – designed facilities in Algeria to capture carbon dioxide and inject it into a brine formation a mile below the surface. 2
  • 3. Delivering Complex Logistics and Swift Revenue Streams Onshore Facilities and Pipelines As hydrocarbon resources become scarce, national and integrated oil companies rely on their engineering, procurement and construction (EPC) contractors to deliver constructability, operability, safety and cost savings through engineering design. Extreme climates and remote locations present major execution, logistics and environmental challenges. These implementation risks raise important questions: • Is the project timeline realistic and feasible to predict revenue streams? • How will you confidently balance logistics, safety and sustainability? • Which issues are likely to become threats to project success? It’s one thing to understand the issues that affect risk. It’s another to foresee and solve them. With over 30 years of project successes, KBR mitigates risk from project concept, to design and through every detail of your implementation. Many companies recognize the issues that create risk. Few anticipate and resolve them. With over half a century of upstream oil and gas success, KBR mitigates risk from project concept to FEED to every detail of your implementation and beyond. Choosing High-Performance Technology Getting solutions that move your company’s projects ahead without locking into an EPC contractor that only uses proprietary technology is tricky. Project execution today requires international companies with global engineering capabilities, systems, procedures and communications to match the right process technology to your upstream facility or pipeline needs. While we have a number of proprietary technologies that outperform competitive solutions in terms of reliability and cost-effectiveness, we are neutral when it comes to technology and can work with nearly all licensors and equipment suppliers. Understanding client needs and offering Overseeing rigorous process simulation, modeling, feasibility studies, process innovative solutions that reduce risk in onshore optimization and early production design and procurement support has granted KBR and pipeline projects across the globe is a a reputation of solving “first of its kind” challenges. differentiator that KBR brings to every project. 3
  • 4. Visualizing the most efficient, cost effective and environmentally sound project is how KBR approaches every project. 4
  • 5. Maintaining Cost and Schedule Onshore Facilities and Pipelines Risking a massive onshore facility or pipeline project by contracting with an inexperienced EPC outfit could cost your reputation. The fact is that the criteria affecting your ability to achieve monthly objectives depends on getting systems and a strong EPC team aligned with your vision and focused on your goals. KBR will assemble the right team to meet your production targets and local requirements. Proactively trending construction materials and equipment occurs early in our projects and continues during design through procurement, shipping and installation with our proprietary Integrated Project Management System (IPMS). Esso Exploration and Production chose KBR when needing an EPC company to generate four times Chad’s existing power supply in the Chad - Cameroon Development Project. Managing Execution Risks With fast-tracked timetables, environmental and field development in an environmentally compliance and tight capital budgets, KBR’s sensitive area. Operating in rain forests and effective project management takes you national preserves with no infrastructure, our seamlessly from an initial idea to revenue team delivered a feasibility study and FEED. stream. Averting risk during concept, The project also included reservoir description, feasibility, front-end engineering and design field exploitation plans, well construction, field (FEED), detailed design, construction and water separation, connector pipelines, central commissioning is an area in which we are well processing facilities, export pipelines, pump equipped. For example, Perez Companc turned stations and reception facilities. to KBR when they needed complex logistics Putting Safety First Creating an organizational climate that OHSAS 18001 certifications, and continue practices safe behavior, rewards safety our world-class record of training. Achieving performance, records lost time incidents project success means continuously (LTI) and minimizes environmental and social improving safety records and removing impact is a differentiator when choosing an health and environmental hazards that could EPC contractor. Each year our commitment stall production. Further proof of our pledge to health, safety and the environment is to put safety first includes achieving over evident as we implement proven standards 32 million hours on the Chad - Cameroon and processes, hold ISO 9001, ISO 14001 and Project without an LTI. Having one of the best safety records in the industry and a solid reputation of managing resources shows why companies like Shell, BP and Chevron come to us for repeat business. 5
  • 6. From initial conceptual studies, FEED and construction, KBR has contributed to every phase of the In Salah Gas Development project, adding to the company’s 30-plus year project experience in Algeria. 6
  • 7. Rejecting Proposals Built on Promises Onshore Facilities and Pipelines More than likely you have received expertise, training, logistics, execution and proposals that seem too good to be true. exceptionally high safety record, there is To put matters into perspective, loss of really no comparison. For example, many production from just one missed project of the capabilities outlined earlier prompted milestone easily outweighs the perceived BP to choose KBR when needing EPC savings promised by a low-bid contractor. services for seven natural gas fields at the Bids from KBR are competitive, so when you In Salah Gas project in Algeria. evaluate and weigh our quality personnel, Creating Jobsite Employment Opportunities Leading EPC companies create job communities. Not only do we oversee opportunities in the areas where they work thousands of workers at project sites, our to enrich and sustain local communities. local content numbers are significant. For Besides holding a notable safety record, the example, KBR managed a peak construction contractor you hire needs experience training workforce of over 10,000 on multiple sites workforces of all sizes and must have in- during the Chad – Cameroon project in depth understanding of cultural issues to Africa, and helped create new service work well with various governments and companies in Chad. Balancing logistics, reducing emissions and safeguarding lives is how we operate on a daily basis Chad-Cameroon, In Salah, In Amenas and numerous other massive Partnering with our clients, KBR’s vision and planning in FEED desert projects show how KBR has the expertise, negotiating power packages provides a state of readiness for final designs, a and flexibility to match materials and services to your vision, cost measure of accuracy for capital budgets, successful developments and schedule needs. and on-time profitable production for our clients. 7
  • 8. Commercial residuum oil supercritical extraction (ROSE®) units have demonstrated overall savings of up to 50 percent compared to conventional solvent-extraction processes that use evaporation, compression and condensation. 8
  • 9. Delivering Successful Outcomes Onshore Facilities and Pipelines Deploying tools, systems and procedures globally combined with our advanced project management software allows for borderless work sharing and increases the success of your project. Ensuring that standards and project requirements are aligned with your vision, our experts communicate and monitor progress using business execution tools such as IPMS, project portals, 3D conceptual engineering, project dashboards, geographic information systems and object engineering. For example, our experts relied on extensive project management tools to communicate work progress while working on Agip Kazakhstan North Operating Company’s (Agip KCO) Kashagan onshore/offshore project located in the seasonally ice-bound North Caspian Sea. Processing, Upgrading and Transporting to Compete The high cost of light sweet crudes is our differentiated resid processing and forcing refiners to invest in bottom-of- upgrading technologies that include our the barrel processing, upgrading and patented ROSE, coker and visbreaker conversion capabilities to be competitive. technologies. Managing the handling, Stringent environmental requirements treatment, removal and disposal of sour and a dwindling supply of quality crudes gas at sites in the Gulf of Mexico, the make upgrading a logical choice. Offering Caspian Sea, Asia and North Africa allow us economic and efficient solutions to process to provide in-depth solutions to low-quality and transport difficult crudes, KBR is a gas and crude. leader in heavy oils and tar sands through Designing and constructing major processing plants on schedule with an exemplary health, safety and environmental record is a KBR differentiator Not only did KBR create and globally deploy our Program Management Suite in six months while delivering project management for over 20 major contracts in Agip KCO’s drilling and production project in Kashagan, we also scoped and deployed the initial phase of the project’s Integrated Management system simultaneously. 9
  • 10. Desert/Arid Regions Rapid execution and no disruption to operations during onshore and pipeline projects result from our comprehensive in-plant work knowledge. 10
  • 11. Delivering Unique Solutions in Desert/Arid Regions Onshore Facilities and Pipelines From dealing with moving sand dunes to the creation of new water sources, projects in arid regions require tailored solutions. As engineering, procurement and construction management (EPCm) contractors for desert projects, we develop and design detailed environmental management plans including solid waste disposal systems, wastewater and dust mitigation among others. Providing logistics for equipment and materials, hiring and training local workforces in remote locations, our experts streamline processes, institute comprehensive health and safety programs and utilize businesses and suppliers near worksites to boost local economies. Mitigating Complex Logistics in Chad and Cameroon Esso Exploration and Production turned to an oil and gas gathering system to produce KBR to build a power plant that would meet one billion barrels of crude over 25 – 30 the needs of a growing population and years. Limited infrastructure, complex generate four times the country’s existing logistics and multiple sites covering 1,400 power supply. Through FEED and EPC, KBR square kilometers made developing oil met this challenge by hiring a workforce reserves in Chad and exporting it to the greater than 10,000 representing more Atlantic coast of Cameroon a challenging than 10 nationalities to deliver a 120 MW undertaking. ExxonMobil acknowledged the power plant. Project execution involved schedule and performance on this project, constructing numerous systems and and as a result honored the team with facilities in both Chad and Cameroon, and “Safe Contractor of the Year” award. Delivering Extensive Geological Reconnaissance at In Amenas BP/Sonatrach enlisted KBR to provide FEED team to build a ground model that depicted and full EPC services for a gas production geotechnical properties of the pipeline project at the In Amenas region of southern route. This capability alone prompted Algeria. Covering an area greater than 1,000 BP/Sonatrach to choose KBR and JGC square miles, the project team delivered full when needing FEED and EPC for a gas facility scope of work from the wellhead to development project that spanned four the tie-in with the gas transmission line and production fields. Besides delivering the gas this includes all supporting infrastructure. gathering facilities, our JV also delivered Extensive geological reconnaissance of soil the pipelines and infrastructure including and ground conditions enabled our project roads, accommodations and offices. Integrating construction and commissioning activities is one way KBR provides better installation with fewer punch list items once your project is complete. 11
  • 12. Creating the infrastructure to make remote projects feasible often means turning an isolated landscape into a working town complete with everything from running water to satellite communications. 12
  • 13. Injecting CO2 beneath the Surface at In Salah Onshore Facilities and Pipelines BP chose KBR to deliver FEED, full EPC 100,000 tons of freight in 4,500 truck services, infrastructure and construction movements covering nine million management for the largest dry gas project kilometers. In Salah is the largest dry-gas and export pipeline in Algeria. The gas joint venture in Algeria, and has one of facility spans four main sites across seven the largest CO2 sequestration systems in natural gas fields covering 23,000 square the world. To avoid venting gas into the kilometers south of Algiers. The project team atmosphere, KBR and JGC along with designed this gas gathering and export the joint venture between Sonatrach, BP project for 850 million square cubic feet and Statoil—designed facilities to capture per day (scfd). Some of the challenges of a carbon dioxide and inject it into a brine project of this scale included transporting formation a mile below the surface. On-stream since July 2004 with the help Delivering the FEED and full EPC of the world’s first full-scale carbon dioxide capture project of KBR and its joint venture partners, In at a gas field, KBR and it’s joint venture partners are helping the environment by making it Salah Gas project produces around nine possible to inject about one million tons of CO2 into a reservoir each year. billion cubic meters of gas per year. In Salah Gas, the largest dry gas joint-venture project in Algeria, involves the development of seven proven gas fields in the southern Sahara, 1,200km south of Algiers. 13
  • 14. Arctic/Cold Regions Designing, building and managing every type of onshore oil and gas development project from the equatorial forests, river deltas and deserts to the Arctic has enabled KBR to deliver complex logistics and resolve risks that impede revenue streams. 14
  • 15. Addressing Complex Cold-Climate Conditions Onshore Facilities and Pipelines Module and subassembly prefabrication, thermal protection for personnel and equipment and electrical heat tracing on exposed lines are a few of our solutions to cold weather challenges. Designing cold-region facilities based on our environmental philosophy of zero discharge to protect delicate tundra vegetation and marine environments is a KBR differentiator. In terrestrial environments, we typically construct facilities when soil is frozen. Another safeguard we take in environmentally sensitive areas is to design onshore facilities on engineered gravel and sand pad foundations. Delivering Project Management in Kashagan Agip KCO chose KBR to deliver FEED export pipelines. The team developed and and project management for an onshore/ delivered web-enabled global information offshore development of a high-pressure, management systems to provide sour oil and gas field. Kashagan is one of consistency in standards, plans, processes the larger discoveries in this decade with an and procedures. With over 20 major estimated 30 billion barrels of oil. The project contracts with teams around the world, is located in shallow and environmentally we verified compliance using our program sensitive water, and required drilling and management systems. Planning took into production islands with several inter-field account that the North Caspian Sea is pipelines, pipelines to shore, onshore icebound during winter months. processing facilities and terminal and Safeguarding lives, communities and environments where we operate is a fundamental principle that KBR embraces. Community involvement at KBR takes many forms either by training local work forces, hiring local vendors, preventing infectious diseases or even constructing schools, roads and medical clinics in some cases near project sites. 15
  • 16. Helping oil and gas companies monetize their energy resources is a well established KBR strength. 16
  • 17. Optimal Arctic Design for Mackenzie Delta in Canada Onshore Facilities and Pipelines When Imperial Oil Limited needed to processing and separating facilities. This engineer a 30-inch diameter pipeline project included conceptual and preliminary spanning 1,220 kilometers from the engineering and the initial design capacity Mackenzie Delta to just north of the Alberta, consisted of 1.2 billion cubic feet per Northwest Territory border, they turned day (cfd) expandable to 1.9 billion cfd. to KBR. This immense project will gather Additionally, the project required an Arctic natural gas and natural gas liquids (NGLs) design and permanent infrastructure from three onshore natural gas fields including access roads, airstrips, helipads including gathering pipelines, natural and communication systems to support gas and NGL trunk lines and associated construction and operations activities. Whether it’s commercializing remote natural gas reserves or creating the infrastructure to produce hydrocarbon reservoirs onshore, KBR has the expertise and experience to help customers derive the greatest value from their assets. 17
  • 18. By providing a full complement of engineering, procurement, construction and commissioning/start-up (EPC-CS) services, we continue to develop innovative technologies and project execution methods, enabling us to deliver facilities in some of the most challenging environments on earth. 18
  • 19. Upgrading the Karsto Development in Norway Onshore Facilities and Pipelines Statoil chose KBR’s subsidiary, MW Kellogg, when they needed detailed engineering to upgrade and develop their gas treatment facility in Karsto, Norway. Karsto is a hub for gas production from 30 large and small fields in the North Sea and Norwegian Sea. Statoil awarded the contract to KBR’s subsidiary on behalf of Gassco and Gassled. Besides detailed engineering, the upgrade contract calls for assistance in procurement and construction. The upgrade will allow the complex to send more gas through the Europipe II pipeline to Dornum, Germany. By improving regularity and flexibility, the facility will operate with greater efficiency. KBR through MW Kellogg was the main contractor on three previous major expansions at the Karsto facility, and has worked with Statoil for a quarter century. Improving efficiency of operations, conserving natural resources, The Karsto gas treatment facility in Norway is another example of KBR’s safeguarding lives and reducing emissions is how KBR operates on ability to design and construct major processing plants on schedule and a daily basis. with an exemplary health, safety, and environmental record. 19
  • 20. Jungle/Tropical Regions Development of onshore and pipeline facilities start with KBR designers and engineers’ visualization of the most hyper-efficient, cost-effective and environmentally sound project. 20
  • 21. Mitigating Environmental Challenges in Jungle/ Tropical Regions Onshore Facilities and Pipelines Few EPC companies can deliver fast-track development in rain forests without roads or pipeline networks. This handful shrinks when environmental restrictions are extensive and indigenous groups must approve land use agreements for development. Overcoming access issues, lack of infrastructure and environmental challenges such as preserving native tribal hunting grounds, national parks and tree canopies has made us part of a select group of EPC companies that deliver oil field and central processing facilities in rainforest environments successfully. Recommending directionally drilled pipelines for river crossings is one way KBR helps minimize adverse effects to the environment Expanding the Highlands Gas Development The project required completing the FEED as improvements to existing site for a 700 million scfd gas processing facility structures including base camp, loading for ExxonMobil’s subsidiary, Esso Highlands dock bulkheads and the expansion of Limited, in Papua New Guinea. Besides warehousing, helicopter landing facilities delivering the FEED for the future liquefied and a nearby airfield. Some of the risks natural gas (LNG) facility, the project team encountered on this project included designed a gas gathering system, a 26” gas safeguarding personnel and equipment export pipeline, additional facilities as well against fast flowing rivers. Navigating the logistics of buying, shipping and controlling a massive amount of equipment, materials and people are areas where KBR has earned a solid reputation. 21
  • 22. Choosing KBR has helped numerous integrated and national oil companies improve their country’s future through technology transfer, sustainable development and swift monetization of natural resources. Why wait? 22
  • 23. Upgrading Facilities while Negotiating Difficult Terrain in Cusiana and Cupiagua Onshore Facilities and Pipelines BP turned to KBR when they needed EPCm for process facilities, well pads and a gathering system at Cusiana and Cupiagua, two of the largest oil fields in Colombia. Besides EPCm, the project called for crude oil production, gas re-injection and water disposal. Located in the eastern Andes foothills, the dual fields are the largest discovery in the Western Hemisphere in 20 years and largest in the 80-year history of the Colombian oil industry. The project team upgraded the central processing facility (CPF) at Cusiana from 185,000 to 320,000 barrels of oil per day (bopd), and developed the Cupiagua CPF greenfield site to process 200,000 bopd. The project team successfully negotiated difficult terrain, including a 10,000-foot elevation pipeline crossing of the Andes Mountains and five major drilled river crossings in addition to establishing security and work practices in a challenging region. Meeting strict environmental, permitting and access requirements are several challenges we face when executing onshore and pipeline projects Largest Diameter Gas Transmission Pipeline in Cross-Island Project Trinidad National Gas Company relied compression) and is the largest diameter on KBR for EPCm for a 77-kilometer gas gas transmission pipeline thus far in the transmission pipeline that spans the island Western Hemisphere. The project overcame of Trinidad from Beachfield to an LNG a number of challenges with respect to facility on the island’s southwest coast. The confined right-of-way, adjacent pipelines, 56-inch-diameter pipeline transports up to swamps and routing through existing plant 3.85 billion scfd (2.4 billion scfd without areas. Generate Revenue Stream. Manage Logistics. Deliver Sustainability. Maintain Schedule. Experience delivering revenue streams quickly following construction of complex facilities in harsh, remote environments is a benefit that KBR brings to every project. Mitigating risk on your multi-billion dollar onshore facility and pipeline project is how we help you derive the greatest value from your assets. Ingenuity in designs, flexibility in approach and confidence in execution are three reasons so many companies turn to the industry expert for safe, environmentally friendly EPC: KBR. To learn more, visit: kbr.com/onshore or contact onshore@kbr.com 23
  • 24. www.kbr.com www.kbr.com ©2008 KBR, Inc. ©2008 KBR, Inc. All Rights Reserved All Rights Reserved Printed in U.S.A. Printed in U.S.A. 070274 2/08 K08087 4/08 080018 www.kbr.com