25° 15’40 ’N | 51° 33’54”E

CIVIL

GOVERNMENT SERVICES

MINING & METALS

OIL, GAS & CHEMICALS

POWER

Australia Pacific LNG, Australia

Delivering Mega-Projects Through A Global

Execution Model Darren Mort

APLNG Senior Project Manager 20 June 2014

Bechtel: A Family Lead Company

116 years old

23,000 projects in 140 nations

Four generations of family

leadership

Over 55,000 employees worldwide

5 Global Business Units

© Bechtel | 2

3

Current Global Projects

Missile

Defense

Lawrence

Livermore

National

Laboratory

Hanford Waste

Treatment Plant

Scotford

Upgrader Oak Creek

Power Plant

Prairie State

Power Plant

Ras Az Zawr

Smelter

Jubail

Industrial City Chemical

Weapons

Elimination

AT&T

Wireless

Expansion

Los Alamos

National

Laboratory

Motiva

Refinery

Pascagoula

Refinery

Nuclear Power

Uprates

Los Pelambres

Mine

Los Bronces

Mine

Angola

LNG Plant

Albanian

Motorway

Oak Ridge

Dulles Metrorail

Extension

Naval Nuclear

Propulsion

Sammis Power

Plant

Romanian

Motorway

New Doha

International

Airport

Port Waratah

Coal Terminal

Kwajalein

Test Range

Worsley Refinery

Keystone

Pipeline

Wood River

Refinery

Ivanpah

Solar Power

Complex

Watts Bar

Power Plant

Edwardsport

IGCC plant

Crinum North

Mine Queensland Curtis LNG

Gladstone LNG

Australia Pacific LNG

Crossrail

Commuter

Line

Gabon

Infrastructure

Yajva Power

Plant

Antapaccay

Mine

Al Khalij

Power Plant

Wheatstone LNG

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Curtis Island: An EPC Case Study

Highest concentration of Bechtel

projects in the world

Three projects, three customers,

one location

Tough delivery schedules

Peak workforce more than 13,000

Worker accommodation 6,600

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Curtis Island Projects Overview

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Global Execution Approach

Regional, national and global reach:

- Houston - Engineering

- Shanghai & New Delhi - Design

- SE Asia - 3 module yards

- Gladstone - Construction

- Major vendors around the world

Benefits of global execution:

- Skilled & experienced people

- Resources & specialist suppliers

- Cost effective and competitive

- Expanded capability

- Parallel work activities

- Reduced schedule

- Risk mitigation

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Challenges of Global EPC Execution

Mega-project concentration

Worldwide execution centres

Multiple locations simultaneously

Global supply chain management

Supplier quality control

Material supply & logistics

Modularisation coordination

Labour capacity and capability

Safety performance

Communications

Change management

Team alignment

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Engineering Execution

Engineering in Houston, New Delhi, Shanghai, Curtis Island

- Houston: Conceptual design, FEED, detailed design

- New Delhi and Shanghai: Detailed design

- Curtis Island: Resident Engineers

Challenges of concurrent global engineering

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Meeting Australian Standards

Specific technical / regulatory requirements in Australia

Project life cycle considerations:

- Design

- Procurement

- Construction

- Commissioning

- Operations

Management Strategy

- Experienced local team

- Vendor oversight

- Experienced and qualified craft

- Robust quality assurance and control

- Independent review

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Supply Chain: Global Execution Map

Gas Turbine Generators

San Diego

Inlet Air Chilling

Design office

Houston

Cold Boxes

Valves

Cryogenic Piping Compressors

Italy

Design office

New Delhi

Design office

Shanghai

Structural steel

China

Tank Fabrication

Module Construction

Indonesia

Vessels

Korea

Module construction

Thailand

Philippines

Germany

Spain

Tank Steel

Japan

Piping

Argentina

Pipe Fabrication

Turkey

Project construction

Transformers

Water Treatment

Rebar

Cement

Electrical

Australia

Flares

Electrical

UK

Pumps

Mexico

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Curtis Island Module Program

Design office

New Delhi

Design office

Shanghai

Module construction

Philippines

Australia Pacific LNG project

GLNG project

Queensland Curtis LNG project

Curtis Island

Module construction

Indonesia

Module construction

China

Module construction

Thailand

Bechtel AU office

Brisbane

260 modules total

111 for GLNG

80 for QCLNG

69 for APLNG

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Moving a Module

Module 101DA arrives at APLNG

At 3,500 tonnes, it is the heaviest module on Curtis Island

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A World Of Experience To Deliver

Direct hire execution

Global Construction Assets

More than 13,000 across 3 projects:

- 3,266 FNM

- 9,897 craft employees

95% Australian - 40% Gladstone

415 Indigenous Australians

1,945 Women

Targeted recruitment

Extensive training programs:

- Up-skilling

- 400 apprentices

- Queensland’s Employer of the Year

Safe delivery

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Construction Execution

Sub-contractors support successful

project delivery

3,500+ sub-contractor employees

Provide specialist expertise and

skilled labour pool

- Site Preparation

- Marine Works (Jetty / MOF’s)

- Permanent Buildings

- Local workshops for smaller scope

- 66% of contracts awarded to

Australian suppliers

Hundreds of millions injected into the

local business community

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Looking Forward

Key market drivers

- Bigger Projects

- Lower Cost

- Shorter Schedule

- Increased Competition

Global execution model key to

mega project delivery

- Huge benefits

- Extensive management

oversight

- Diligent risk management