01PERSPECTIVELEIGHTON INTERNATIONAL’S MAGAZINE

ISSUE 05 � JULY-SEPTEMBER 2010

Port Capabilities in High Demand

SPOTLIGHT ON INDIA

Power ThroughAlliances

PROJECT WINS

A THRIVING MARKET

TRIL PARTNERSHIP

02

Since 1975 our unique combination

of local knowledge and extensive

international experience has made us

the international contractor of choice

in the countries in which we operate.

We operate in Malaysia, India,

Singapore, Sri Lanka and Brunei, and

are expanding further across the

Central Asian Region. We employ

people across four operating divisions:

India, Malaysia, Offshore and New

Markets (including Central Asia).

We focus on five market segments:

Leighton International is a subsidiary

of Australia’s largest project development

and contracting group, the Leighton

Group. We benefit from our ability to call

LEIGHTON INTERNATIONAL IS ONE OF THE LEADING CONTRACTORS AND PROJECT DEVELOPERS IN ASIA AND INTERNATIONALLY IN THEOFFSHORE MARKET. OUR STRENGTH IS OUR ABILITY TO DEVELOP INNOVATIVE, PRACTICAL SOLUTIONS FOR OUR CLIENTS

upon the experience and technical

and financial expertise of the Group.

Perspective is a quarterly publication

produced by Leighton International. It

provides information on developments,

projects and issues relating to Leighton

International, Leighton Holdings and

associate companies.

If you would like to receive this

publication regularly, please email us

at info@leightonint.com �

Published by:

Leighton International

13/F Menara Multi Purpose

8 Jalan Munshi Abdullah

50100 Kuala Lumpur

Malaysia

t: +60 3 2035 1688

f: +60 3 2693 4388

info@leightonint.com

www.leightonint.com

All values are in US dollars unless otherwise indicated.

03

Introduction 04

In Brief 05

Overview

Leighton & India 06

Industry News

Strategic Alliances 08

Profiles

Working in India 10

Safety at Work 12

O&G Focus 13

Snapshot 14

Project Updates

PRP2 16

Mangala Field Development

Marine Facilities 18

SPM Brunei 19

New Projects

Paradip Port & Visag Port 20

Chenani-Nashir Tunnel 22

Labuan Pipelines 23

Company News

Management Development

Programme 24

World Environment Day 2010 25

Quarterly Results 26

CONTENTS

16

2608

04 INTRODUCTION

Leighton

International has

recently completed

a successful

financial year, with

good operational,

health, safety and

environmental performances across our

projects. We have achieved our targets

for the financial year in terms of return

on revenue and return on shareholders’

funds, which is a great effort in a year

where we have restructured and

refocused the business going forward.

Since the last edition of Perspective,

Leighton Contractors India have secured

three major new projects in India -

building one of Asia’s longest road

tunnels the Chenani-Nashri Tunnel and

two marine construction projects, Vizag

and Paradip ports expansion. These will

add to the projects currently successfully

underway, the TATA Ramanujan IT Park

Alliance 1st project in Chennai, the

Pipeline Replacement Project 2 pipelay

project and the Mangala SPM project for

Cairn (you can read full reports on our

latest India wins and progress reports

on the current ones in the following

pages of this issue).

The Indian economy is forecast

to achieve GDP growth of more than

8% over the coming year. There are

opportunities for us across all of our

markets including roads, rail, ports,

buildings, power stations, offshore oil

and gas and contract mining

The Indian Government has forecast

significant expenditure on infrastructure

in the next five year plan (2012-2017).

Of the approximately $1 trillion forecast

infrastructure requirement, approximately

50% ($500m) is expected to come from

private sector investment including PPP

projects.

Paving the way for further growth

in India, we are in the final stages of

entering into a strategic partnership

with Jindal Group (JSW) who will take

a 26% stake in the company.  A strong

Indian strategic partner will provide us

with the support and focus to take our

business to a new level (see full story

on page 6).

The coming years presents a range

of exciting opportunities for Leighton

International and I am certain our

operations in India will be the engine

room driving our future growth. �

DAVID SAVAGECHIEF OPERATING OFFICER,

LEIGHTON HOLDINGS

� Your feedback is important to us, and I encourage you to send any comments

you may have on this issue of Perspective, or suggestions for future issues,

to info@leightonint.com.

THIS ISSUE WE SPOTLIGHT LEIGHTON CONTRACTORS

INDIA – ONE OF LEIGHTON INTERNATIONAL’S KEY BUSINESS

UNITS OPERATING IN A THRIVING CONSTRUCTION AND OIL

AND GAS MARKET

INTRODUCTION

05

LEIGHTON SAFETY

AWARD SHORTLIST

The nominations for

this year’s Leighton

International Health,

Safety and Environment

Award are in. Three India

projects are in the running

(HPCL, PRP2 (see project

update on page 16), TRIL)

with two nominations from

Malaysia (Shuqaiq and

ARE). Final judging will

take place in August

with the winner being

announced soon after.

Watch this space!

IPLOCA MEMBERSHIP

Leighton Offshore has been awarded membership to the International Pipeline and Offshore Contractors Association (IPLOCA). With members in over 40 countries, IPLOCA represent some 225 of the key players in the onshore and offshore pipeline construction industry worldwide. The association provides a forum for sharing ideas, facilitating business opportunities and promoting the highest standards in the pipeline industry.

Building one of Asia’s longest road tunnels in India: Leighton has won a major road tunnel job in Jammu, Northern India. The Chenani-Nashri tunnel is a 2 lane, 14 metre diameter tunnel approximately 9 kilometres long, and will be one of the longest road tunnels in Asia (see page 22).

IN BRIEF

BOARD MEETS AT NDT PROJECTLeighton International Board

was in Malaysia for its

quarterly meeting in May.

The Board members visited

the Northern Double Track

project in Ipoh. The project

team presented a thorough

overview on project

establishment towards the

eventual goal of upgrading

the existing single track

railway infrastructure into a

modern Electrified Double

Tracking network.

IN BRIEF

MYNX UPGRADE IN FULL SWING The upgrade covers the accommodation modifications to bring Leighton’s vessel, Mynx, to full compliance with the International SPS code and improvements to suit latest class requirements, project and client needs. The project achieved a major milestone in June with the successful load out of the accommodation module in line with the scheduled delivery date. Once completed in mid-September, Mynx will mobilise to North-West India where she will undertake works associated with the Mangala Pipeline Project for Cairn Energy.

06 COMPANY NEWS

LEIGHTON CARRIED OUT ITS FIRST PROJECT IN INDIA IN 1998. IT WAS NOT UNTIL

2004. HOWEVER, THAT THE COMPANY SET UP A PERMANENT OFFICE AND THE INDIA

BUSINESS REALLY STARTED TO TAKE OFF.

LEIGHTON IN INCREDIBLE INDIA

Six years later,

Leighton is widely

recognised for

its significant

achievements, and the

Leighton brand has

become a strongly

felt presence in the India market. Those

achievements include being awarded

the largest contract ever awarded by

India’s Oil and Natural Gas Corporation

at the time, namely the Pipeline

Replacement Project 2 (and its very

successful delivery to date), successful

establishment and delivery of India’s

first major construction project under

the Alliance model for TATA Realty

India Limited, and the recent award to

Leighton of India’s longest road tunnel

being the Chenani tunnel in the state

of Jammu and Kashmir (full story on

page 22).

SETTING THE AGENDAOne of the cornerstones of Leighton’s

India business is its diversity. We have

built factories and high rise residential

towers, constructed over 100km of

national highway, carried out installation

works for not less than eight single point

mooring systems for the import and

export of crude oil and refined products,

laid more than 200km of subsea

pipelines, and completed topsides

works at more than 80 offshore

platform locations.

And we continue to diversify.

We have work in hand to install

telecommunications equipment for

Indian Railways; we have recently been

awarded two port projects on India’s

east coast (see page 20), and we are

working towards securing our first power

sector project in the India market.

07

Our strength lies not in our projects

however, but in our people. It is

our people who have successfully

delivered our projects on time and to

international standards of quality so that

our clients keep returning to us. It is

our people who have focused on safety

and ensuring that not only do they

themselves come home safely every day,

but so does everyone else around them.

Two projects in the last year that have

achieved together over 10 million man

hours without an LTI is a remarkable

achievement by any standard and

reflects the commitment to safety that

each and every person at Leighton

India has.

LOOKING AHEADThe future for our India business is

incredibly bright. India is a large market

with strong projected growth and

government committed to developing

infrastructure to take the country into

the decades ahead. With our work

history, the respect we have garnered

in the market from our efforts to date,

and the added ‘muscle’ available to us

through our strategic partnership with

the JSW Group (see attached article),

Leighton India is well place to achieve

its goal of becoming a US$2 billion

company within the next three to

five years.

Our objective is to be the best

construction company in India and we

aim to set a new benchmark with every

project we undertake.

In the near future, we have a plethora

of road projects to focus on and stand

a very strong chance to secure a good

selection of work in this sector. Leighton

India will continue its push into the oil

OVERVIEW

and gas sector, targeting traditional

areas such as subsea pipelines and

SPMs, as well as new areas including

platform fabrication and installation,

and work in progressively deeper

waters. With India’s current shortfall in

generated power, we see significant new

opportunities in the power sector and

will continue our push to win new EPC

“Our strength lies not in our projects however, but in our people. It is our people who have successfully delivered our projects on time and to international standards of quality so that our clients keep returning to us. It is our people who have focused on safety and ensuring that not only do they themselves come home safely every day, but so does everyone else around them.”

power station work.

It’s truly a great time to be in India,

and to partake in the energy that is

fuelling the growth of this vast nation.

Leighton India has record work in hand

going into the 2011 Financial Year. We

have had a great year in 2010, and have

exceeded our targets. 2011 stands to

be even better. �

THE JINDAL PARTNERSHIP STRATEGIC BENEFITS FOR LEIGHTON INDIA

JSW Group is part of the US$ 8 billion O.P. Jindal Group. Led by Sajjan Jindal, it is a multi business conglomerate worth

approximately US $3.7 Billion. The JSW Group employs more than 8,500 employees, and has diversified interests in steel,

energy, minerals and mining, infrastructure and logistics, and investments.

Leighton India is finalizing the sale of a 26% stake to JSW. JSW’s relationships and market presence will generate further

opportunities, and support existing opportunities, for the Indian arm of Leighton International.

08

TATA Realty and

Infrastructure Limited

(TRIL) is developing

Ramanujan IT Park, a

multi product SEZ at

Chennai, capital of the

State of Tamil Nadu in

India. At the time when we secured this

project, the order backlog of most of the

large construction firms was very healthy

and many of the developers had no

choice but to implement their crucial

projects through cost-plus arrangement.

We needed the construction firm on

board in the initial stage of the project

to ensure quick commencement of the

field activities.

We at that stage had discussions with

representatives of reputed construction

firms about the project delivery system

favored by them for this prestigious

project and, as expected, most of them

were of the opinion that cost-plus is

the best option considering the time

constraint. It takes generally six months

to get approvals from various

Government authorities and float an

inquiry if it is an item rate contract.

Evaluation of quotes received and then

appointing a contractor takes a couple

of months more. We had no such float

in our program.

FORMING AN ALLIANCEAt that stage, Leighton indicated to us

about the prevalence of a proven project

delivery system adopted in Australia for

more than a decade called ‘Alliance’

also known as relationship contracting.

INDUSTRY NEWS

Considering the fundamental principles

of such an arrangement like

collaborative approach, open book, risk

sharing, no blame and pain/gain share,

we decided to study the concept.

After visits to some of the projects

in Australia and checking the positive

outcome vis-à-vis traditional contracts,

we decided that an innovative

organisation like TATA should become a

pioneer in bringing this concept to India

for the benefit of the industry. Also, the

arrangement was found more equitable.  

The process of forming the Alliance

was commenced with help of a

facilitator and we entered into an Interim

Alliance Agreement (IAA) with the key

consultants. The Alliance Manager,

Bruce Carter, was selected from

Leighton and under him, key persons

from TATA as well as other consultants

were posted in the Alliance management

team.

The site activities commenced after

the initial approval process was over.

The excavation and shore piling work

was commenced while the detailed

design work was progressing

simultaneously. Finally, the Target

Outturn Cost (TOC) was finalised along

with the terms of Project Alliance

Agreement (PAA) in May 2009.

PROJECT KICK OFFSince inception, we have observed a

very satisfactory progress of the project.

With the site being in city limits, heavy

vehicles are allowed to enter the

premises only from 10.00 pm to 6.00

am. It needs excellent planning to

monitor the supply of bulk materials,

disposal of excavated materials and

manage logistic issues. The site team

led by Mr Carter has managed it

extremely efficiently.

Time, cost, innovations and safety are

monitored monthly and I am glad to

indicate that on all accounts the Alliance

has performed better. It achieved the

first milestone of completing the raft of

the basements successfully a month

ahead of schedule.

QUALITY CONTROLThe safety policy of Leighton is being

strictly implemented and it is very robust.

The site has achieved more than 5

million incident free man hours. Special

care is being taken to train the new

workmen enrolled by specialist agencies.

The labour facilities are much better than

generally observed else where.

The Alliance team having larger

representation of Leighton has carried

out the task of coordination with

specialist agencies and consultants very

well and the quality of product is being

appreciated by all. Many innovations

were carried out by the site team to

THE INDIA ALLIANCE ADVANTAGEP. D. KARKARIA, TATA EXECUTIVE DIRECTOR, SHARES

HIS VIEW ON THE POWER OF STRATEGIC ALLIANCES

AND WORKING WITH LEIGHTON TO PIONEER THE

PROVEN PROJECT DELIVERY SYSTEM IN INDIA

09

RAMANUJAN IT PARKA SNAPSHOT

One of the most significant projects in Leighton India’s portfolio is the prestigious

Ramanujan IT Park. The US$240 million mixed-use development is being built in

a special economic zone in Chennai for Tata Realty and Infrastructure Ltd. (TRIL).

The project is an Alliance contract comprising TRIL, Leighton and a number of

specialist consultants, with joint responsibility for the design, construction and

commissioning of the project. This Alliance is a first in the Indian construction

industry. The IT park covers 755,000 square-metres of built-up area comprising

a mixture of IT offices, a convention centre, retail, residential, food outlets,

entertainment and car park facilities. The project has distinct elements - a

processing zone (PZ) and a non-processing zone (NPZ).

The PZ, which is Phase One of the project, is comprised of four 14-storey

towers in 370,000 square meters of built-up area, including three levels of

basement parking and two further parking levels over 17 acres, and a Utilities

Building. This PZ will house approximately 40,000 IT employees and 10,000

cars and is scheduled to be completed by December 2011.

Phase Two is the NPZ, which will house residential and retail facilities, an

entertainment/convention centre and car park, and is due for completion by

the end of 2012.

Leighton India project team led by Bruce Carter, has hit all of its milestone

dates to date. The PZ buildings are 80% completed with the NPZ in its final

concept design stage.

NEW PROJECTS

improve the productivity and they are

being regularly monitored. Leighton

has adopted an in house costing and

monitoring system and the outputs are

being shared with top management at

regular intervals.

 

WORKING WITH LEIGHTONWe are very pleased to work with

Leighton under the Alliance concept and

the project is getting visibility among

other large developers and construction

organizations in India.

We are sure that Leighton will be

able to execute more projects with this

advanced project delivery method in

India and successfully demonstrate

how it benefits all stakeholders.

We in TRIL are moving ahead with

adopting the basic principles on other

projects of TRIL. It helps in controlling

an adversarial environment among the

teams to an extent. 

I am sure that the Ramanujan City

project will demonstrate to Indian

industry the skills of Leighton in

managing complex large projects

and the advantage of working with

a collaborative approach. �

10 PROFILES

WORKING IN INDIA

“In the present world where cash is king, another big challenge for me has been to manage business cash flow in an optimum manner”

What are you initial impressions of starting work in Leighton India?I joined Leighton India in May 2008 at

the time when it had just won two big

projects, PRP2 and Bina, and was

taking a big leap in the offshore

business. Employee morale was high

and it had a closely knit team which

was growing every day.

Leighton is one organisation that

takes good care of its employees,

quite evident from the 2% attrition rate

and various employee value proposition

activities being managed in India O&G

business. Leighton initially struggled to

cope with the bureaucratic set up

of clients and various government

organisations but has now efficiently

overcome these problems.

What do you see are the key strengths of the business?Leighton India O&G business has a

strong integrated team of professional

employees led by efficient

entrepreneurial management. It has built

a reputation of a contractor which fully

understands client’s need and goes an

extra mile to satisfy the client’s

requirement to build long term

relationship.

What do you think are the key challenges to your job?One of the biggest challenges is to

ensure that the rapidly growing India

business not only complies with

Leighton’s policies and procedures, but

also fulfils complex Indian corporate

regulations. In the present world where

cash is king, another big challenge for

me has been to manage business cash

flow in an optimum manner.

What do you think sets Leighton apart from other contractors in India?In O&G business where stakes are very

high, Leighton is one contractor which

has unparalleled HSE standards. It has

a good track record of successfully

completing various SPM jobs and

pipeline replacement jobs and has at

present three barges best suitable

for the kind of jobs it is presently

undertaking in India waters. In addition

it has strong backing of Leighton Group

both operationally and financially.

How do you find living and working in India?After spending seven years in the Gulf,

the first year in India was a challenge

for the entire family, specially my kid.

Professionally, India is a great place to

learn and develop professional skills.

Almost every day is a challenge and a

new learning experience. On a personal

front, my family and I enjoy a great

social life. ��

NAME: ASHISH AGARWAL

JOB TITLE: CHIEF FINANCIAL OFFICER, OIL AND GAS DIVISION

LOCATION: MUMBAI, INDIA

PROJECT: CORPORATE OFFICE

11

NAME: PAUL KORDONIS

JOB TITLE: NATIONAL GM - MANAGEMENT SYSTEMS

LOCATION: MUMBAI, INDIA

PROJECT: CORPORATE OFFICE

How do you find living and working in India?India is described as ‘incredible’ which

really sums up what things are like here.

There is a continual buzz from the

moment you arrive at the airport.

Anybody coming to our offices

automatically sees and feels the activity

and energy. It’s a rewarding challenge

to work here. �

PROFILES

“Leighton brings a wealth of international experience to bear in a market that is growing exponentially”

What are your initial impressions of starting work in Leighton India? When I first arrived I noticed cows on

the streets and workers heating bitumen

in 44 gallon drums along the side of the

road rather than using premixed asphalt

and a spreader. We had workers

building drains with bricks rather than

using precast culverts.

My first impression was the high use

and acceptance of manual labour to do

just about any task. There was very little

use of normally accepted site plant.

Looking around everywhere you could

see many local projects started and

generally left only partly finished.

What do you see are the key strengths of the business?Leighton brings a wealth of international

experience to bear in a market that is

growing exponentially. The Leighton ‘can

do’ approach and delivering on our

promise creates very satisfied clients.

We finish our work and meet, or exceed,

industry quality standards.

What do you think are the key challenges to your job?As a company we all need to be self

driven and to achieve higher standards

of accountability and performance with

our teams. Maintaining focus and not

getting sidetracked.

What do you think sets Leighton apart from other contractors in India?Leighton can draw on its expertise

from all over the world and has an

international vision not limited to national

norms. This enables us to look further

ahead and be already solving

tomorrow’s problems today. This makes

us proactive in a reactive market.

12 PROFILES

SAFETY AT WORK

“Occupational health and safety is a priority for Leighton International and our safety record is a key competitive advantage”

What are you initial impressions of starting work in Leighton India?I joined Leighton India for the Nokia

project five years ago. I was very

impressed with the way the company

focussed on HSE. There is a strong

commitment to ensure employees are

working in a safe, healthy and positive

working environment.

What do you see are the key strengths of the business?Occupational health and safety is a

priority for Leighton International and

our safety record is a key competitive

advantage. We have an approachable

management that encourages staff to

express our views.

What do you think are the key challenges to your job?The implementation of HSE

management systems in India. Initially it

was very difficult with each project but

things have improved over the past few

years. We are also working hard to

implement good safety standard and

culture with sub-contractors.

What do you think sets Leighton apart from other contractors in India?Leighton has more quality concentration

than any other contractor in the region. I

experienced this first hand through the

different projects I’ve been involved with,

the standards are very high.

How do you find living and working in India?Being born in South India, I am proud to

work in my native place of Tamil Nadu

where I can make significant change in

the safety culture whilst working with

Leighton India. �

NAME: SANKARA SUBRAMANIAN

JOB TITLE: SAFETY MANAGER

LOCATION: CHENNAI, INDIA

PROJECT: TATA RAMANUJAN IT PARK

13

INVESTING IN LEIGHTON

What do you think sets Leighton apart from other contractors in India?It starts with a strong track record of

successful deliveries, providing added

value and innovative solutions to

customer’s needs, and absolute

commitment to provide HSE to all

employees. And quite simply, ‘local

knowledge, international experience’. �

PROFILES

“I was gifted with a fully devoted and supportive team who was always ready to join hands to achieve the set targets and objectives”

NAME: SENTHIL KUMAR

JOB TITLE: SENIOR PROJECT MANAGER

LOCATION: MUMBAI, INDIA

PROJECT: PIPELINE REPLACEMENT PROJECT, SEASON 2 (PRP2)

How long have you been working in the industry? I hold about 22 years of experience in

the industry. I started off as a trainee

engineer in 1998, moved up the ladder

and managed various projects in UAE,

SEA, Australia and Indian regions before

joining Leighton in 2008 for the PRP2

project in India.

What are you initial impressions of starting work in Leighton India?It was absolutely a great feel and a very

smooth absorption. I was gifted with a

fully devoted and supportive team who

was always ready to join hands to

achieve the set targets and objectives

of PRP2.

What do you see are the key strengths of the business?A workforce full of experienced

professionals ready to take on any

challenges, our excellent reputation in

the market, satisfied clients, access to

perfect custom made marine fleet and

upcoming business fronts.

What do you think are the key challenges to your job?For the current project I’m working on,

my aim is to manage a peak offshore

spread cost of around US$700,000 per

day, bringing 1,200 team members back

home safely from offshore and a real

time conversion of all project

achievements into cash.

Going forward, placing ourselves

stronger in a growing competitive O&G

market to gain business opportunities

and to keep our resources fully engaged.

O&G FOCUSNAME: SENTHIL KUMAR

JOB TITLE: SENIOR PROJECT MANAGER

LOCATION: MUMBAI, INDIA

PROJECT: PIPELINE REPLACEMENT PROJECT

14 XXXXXXXXXXXXX

SNAPSHOTLeighton Eclipse pipelaying on the Pipeline Replacement 2 project, offshore from Mumbai, India. �

15

16 PROJECT UPDATES

LEIGHTON AMASSED A NUMBER OF OUTSTANDING ACHIEVEMENTS AS IT

SUCCESSFULLY COMPLETED ANOTHER SEASON OF PIPELINE REPLACEMENT WORKS

FOR THE OIL AND NATURAL GAS CORPORATION (ONGC) OFF INDIA’S WEST COAST

LEIGHTON FINISHES PRP SEASON TWOIN STYLE

The PRP2 (Pipeline Replacement Project

Season 2) was the highest valued

contract ever awarded by ONGC, India’s

leading upstream O&G company, at

the time.

Leighton’s scope of work consists

of full engineering, procurement,

fabrication and installation of 178 km of

rigid pipelines, 54 km flexible pipelines

and 78 platform topside modifications

spread over three seasons.

PROJECT SCOPE

Leighton has over 35 years experience

as Asia’s largest project developer and

construction contractor operating in

countries such as Malaysia, Indonesia,

Singapore, Brunei and Sri Lanka. Its

offshore industry represents a key area

of growth for the Group.

The company operates a fleet of

state-of-the-art marine equipment suited

for the full range of offshore and subsea

construction works in water depths up

to 150m, and is the region’s pre-eminent

SPM installation contractor.

In the first season for the PRP2,

Leighton completed 51 km of rigid

pipelines, 18 km of flexible pipelines

and 18 nos of platform modifications

between October 2008 and May 2009.

Due to the large volume of work,

Leighton mobilized marine spread as

early as September 2009 to assure

timely completion of the second

season. The scope of work covered

some 81 km of rigid pipelines,17 km of

flexible pipelines and 40 nos of platform

modifications, including 11 modifications

at large offshore production complexes.

MAJOR MILESTONES

During the season two campaign,

Leighton amassed a number of

outstanding achievements. Leighton’s

modern purpose-built barge, Eclipse,

successfully laid 235 joints (2800 m) of

rigid pipe in one 24 hour period, topping

the record for pipe laid in a single day by

any contractor in ONGC fields in India.

Leighton Eclipse went on to set field

records for riser installation by stack-on

method and riser removal.

Leighton also registered records for

laying 2700 m of flexible pipeline in a

single day and for the highest number

of platform modifications completed in

a single season by any contractor.

At peak, Leighton had a total of 34

vessels and around 1200 men offshore

during season two. The project also

achieved over 4.4 million man-hours

without LTI and received a number of

awards for its safety performance.

Senthil Kumar, PRP2’s Senior Project

Manager, described the success of

the project to date, “It has been an

exceptional team effort that included

extensive in-depth planning, preparation

and coordination.

“The team has now kicked off the

preparations for season three and we

expect even better results this year,”

he said.

“This project is a testament to the capability and capacity of Leighton to successfully deliver even the

most challenging projects”

17

CEO of Leighton India’s Oil and Gas

division, Jignesh Dersari added: “This

project is a testament to the capability

and capacity of Leighton to successfully

deliver even the most challenging

projects.

“Our India business continues to

grow and we continue to build a strong

client base through successful project

delivery.” �

18 COMPANY NEWS

THE PRESTIGIOUS MANGALA FIELD DEVELOPMENT PROJECT COMPRISES OF THE

WORLD’S LONGEST CONTINUOUSLY HEATED AND INSULATED CRUDE OIL PIPELINE.

ONCE COMPLETED, IT WILL BE THE FIRST HEATED AND INSULATED OFFSHORE

PIPELINE TO BE INSTALLED IN INDIA.

PIPELAYING HEATING UP IN GUJARAT

Leighton was awarded an EPC Contract

from Cairn Energy for the installation of

a Single Point Mooring (SPM) System in

November last year.

The project comprises of engineering,

procurement and installation of a SPM

system in 30 meters water depth, and

the installation of twin, heated and

insulated, six kilometers of 24 inches

concrete coated steel submarine

pipelines for export of crude oil.

PAVING THE WAY

This project forms part of Cairn Energy’s

esteemed Mangala Field development

project which comprises the world’s

longest continuously heated and

insulated crude oil pipeline - 670

kilometers from Barmer in Rajasthan to

Bhogat along the coast of Gujarat. This

is also the first heated and insulated

offshore pipeline to be installed in India.

Abshalome Reuben who heads the

project team said: “This will be the

seventh SPM system installed and

commissioned by Leighton in India

in the last three years and further

strengthens Leighton’s position as the

preferred contractor for near shore

installations in India.

“The project opens up new

opportunities of partnering with Cairn

Energy, who currently operates assets

on the East and West Coast of India,

for additional work in their existing and

upcoming assets.”

KEY CHALLENGES

The project has many technical

challenges and is being performed on

an extremely tight schedule. A major

part of the project involves dredging the

seabed strata which consists of mainly

rock. A cutter suction dredger is being

mobilised from the UAE to perform this

work. The twin pipelines will be welded

onshore in strings and once the trench is

cut open, the twin six kilometer pipelines

will be pulled offshore in a single bundle

using a specialised 800 ton linear winch

mounted on Leighton’s Mynx work

barge.

The main project team is set up in

Mumbai, with a team at site involved in

setting up the camp, office facilities and

stringing yard. The project is currently in

the engineering and procurement phase

with permanent works engineering for

pipeline being carried out by IntecSEA

in Malaysia and engineering and

manufacture for the SPM system by

Bluewater in Holland. Residual and

installation engineering is being carried

out by LYE Engineering in Malaysia and

Seal Engineering in France.

Specialised pipe handling equipment

for onshore stringing yard is being

fabricated at various fabrication

yards in India. Onshore pipe stringing

is expected to commence on 1st

September with offshore works

commencing a month later. The project

is scheduled to be completed by 31

March 2011. �

LOCATION: BHOGAT, GUJARAT, INDIA

CLIENT: CAIRN ENERGY INDIA PTY LTD

CONTRACT VALUE: USD 68 MILLION

COMMENCEMENT: NOVEMBER 2009

COMPLETION: MARCH 2011

19DELIVERING ON TARGET IN BRUNEILeighton Contractors Malaysia

successfully completed a $73 million

project for the Brunei Economic

Development Board (BEDB) in April this

year. BEDB developed the facility as an

export terminal for the methanol plant in

the Sungai Liang Industrial Park. The

industrial park is a significant undertaking

by the Brunei Government to diversify its

economy towards more non-petroleum

related businesses.

Work started in September 2008

covering the installation engineering,

procurement and commissioning of a 24

inch diameter, 13.4 kilometre long

offshore pipeline. This covered the

engineering, procurement, installation and

commissioning of the associated Pipeline

End Manifold (PLEM) and SPM systems.

The pipeline system was designed to

handle a flow of up to 1,600 tonnes per

hour of methanol.

The offshore pipeline installation was by

the S-lay method using the Leighton

Faulkner pipe-lay barge, a Leighton

Group asset. Other marine equipment

mobilised for the project covered a

2400Hp anchor-handling tug, a 2000Hp

SPM AND PLEM SYSTEM AND OFFSHORE PIPELINE FOR BRUNEI METHANOL PLANT

PROJECT UPDATES

tug, two 180-foot supply barges and a

crew boat.

“This project marked Leighton’s return

to Brunei after 22 years following the

completion of the Brunei airport terminal

building extension in November 1986. It

“This project marked Leighton’s return to Brunei after 22 years following the completion of the Brunei airport terminal building extension in November 1986. It opens up other areas of business where Leighton can support the Brunei Economic Development Board.”

opens up other areas of business where

Leighton can support the Brunei

Economic Development Board,” said

Tony Harvey, Leighton Contractors

Malaysia General Manager. �

20 NEW PROJECTS

PARADIP PORT

In mid July, Paradip Port Trust awarded

the consortium of Sterlite Industries and

Leighton Contractors India the contract

to develop a multi-purpose berth to

handle clean cargo. Leighton India will

undertake the EPC civil works contract

to construct the wharf and associated

facilities, valued at approximately

US$40m.

The project involves the construction

of a 405 metre by 32 metre berth with

expected capacity of five million tonnes

per annum. All berth construction,

soil improvement and the civil works

associated with the 9.2 kilometre new

rail link which forms part of the facilities

PORT CAPABILITIES IN HIGH DEMAND

will be undertaken by Leighton India.

Construction work on the project will

commence later this year and is due for

completion by the end of 2012.

Russell Waugh, Managing Director of

Leighton India, said: “This second port

project win reinforces our strong market

position both onshore and offshore in

India. Leighton’s ability to offer cost

effective solutions, coupled with a

strong focus on international standards

of excellence in safety, quality and timely

delivery is the hallmark of our success.

“Our India business continues to

rapidly grow as we build a strong

client base through successful

project delivery.”

VIZAG PORT EXPANSION

To cater to the future growing traffic

needs, the Visakhapatnam Port Trust

has decided to undertake mechanisation

of coal handling facilities and up-

gradation of the General Cargo Berth

at Outer Harbour of Visakhapatnam

Port to cater to 200,000 DWT vessels

through public private partnership (PPP)

on a Design, Build, Finance, Operate,

Transfer basis. The contract to perform

this work has been awarded to Vizag

General Cargo Berth Private Limited, a

consortium comprising Sterlite Industries

Ltd. of Vedanta Group and Leighton

Contractors (India) Pvt. Ltd.

The scope of work broadly includes

planning, engineering, designing,

financing, construction, development,

LEIGHTON INDIA WON TWO PORT PROJECTS,

VIZAG AND PARADIP PORTS, IN RECENT MONTHS,

ACKNOWLEDGING ITS EXTENSIVE EXPERTISE IN

MARINE CONSTRUCTION

21

operation and maintenance of the

General Cargo Berth to cater to

200,000 DWT vessels of 300m length

and civil, mechanical & electrical works

for installation of a suitably designed

system for unloading of coal at the

rate of 70,000 tonnes per day via

three ship unloaders. The system will

then transport the material via a dual

conveyor system some 2.5 kms to a

mechanised stackyard for short term

storage. A Bucket Wheel Reclaiming

and Wagon Loading System will also

be incorporated, which will load wagon

trains of 58 wagons of 60 tonne

capacity each at a rate of one rake

per hour.

Tony Friscic, Project Manager, Ports,

said: “This is a tremendous opportunity

for the India business to reinforce the

strength of the JV Alliance with Sterlite

Industries to the port sector in its ability

to deliver this, in a series of upcoming

projects.

“We have met many times now with

the Visakhapatnam Port Authority

who are keen to help the project move

forward and unlike many government

authorities, are being very helpful in

getting us to a physical construction

stage. From a civil construction

perspective the project is very exciting

as it covers many different aspects of

civil works in both the berth works and

stackyard and rail link development.” �

PARADIP PORT PROJECTLOCATION: PARADIP, ORISSA STATE, INDIA

CLIENT: PARADIP PORT TRUST

CONTRACT VALUE: US$40M

COMMENCEMENT: END OF 2010

COMPLETION: END OF 2012

VIZAG PORT PROJECTLOCATION: VISHAKHAPATNAM, ANDHRA PRADESH, INDIA

CLIENT: VISHAKHAPATNAM PORT TRUST

CONTRACT VALUE: US$50 M

COMMENCEMENT: JUNE 2010

COMPLETION: JUNE 2012

22 PROFILECOMPANY NEWS

LEIGHTON HAS BEEN AWARDED THE CONTRACT TO

BUILD ONE OF THE LONGEST ROAD TUNNELS IN

ASIA. THE CHENANI-NASHRI PROJECT INVOLVES THE

CONSTRUCTION OF A MAJOR ROAD TUNNEL IN JAMMU,

NORTHERN INDIA

MAJOR TUNNELLING WIN FOR LEIGHTON INDIA

Leighton India is the engineering,

procurement and construction

contractor to ILFS Transportation

Networks Ltd, who have signed a

concession with the National Highway

Authority of India to build and operate

the project.

The two lane, 14 metre diameter

tunnel is approximately nine kilometres

long, and will be one of the longest road

tunnels in Asia. The tunnel bypasses an

existing winding section of the NH1A

highway, and provides an all-weather

route that will provide a significant time

savings to motorists.

The construction work is valued

at US$500 million, and will take

approximately 54 months to complete,

with work due to commence

immediately.

“This is a fantastic project for Leighton

India,” said Russell Waugh, Managing

Director of Leighton India. “The award

of this project recognises Leighton’s

position as a pre-eminent contractor

in India, and our ability to deliver

technically challenging engineering

and infrastructure projects.” �

LOCATION: CHENANI, JAMMU, INDIA

CLIENT: ILFS TRANSPORTATION NETWORK LIMITED

CONTRACT VALUE: USD 500 MILLION

COMMENCEMENT: JULY 2010

COMPLETION: 2015

“The award of this project recognises Leighton’s position as a pre-eminent contractor in India, and our ability to deliver technically challenging engineering and infrastructure projects”

23

LEIGHTON WINS WATER PIPELINE PROJECT IN MALAYSIA

NEW PROJECTS

The project, awarded to a Leighton-

Kencana joint venture by the Ministry of

Energy, Green Technology and Water,

Government of Malaysia, consists of a

new pipeline that will connect a water

treatment plant at Beaufort, Sabah,

to the storage reservoir complex.

Approximately 23 kilometres will be

submarine pipeline to be installed by

the joint venture.

Leighton’s own state of the art,

purpose-built pipe-lay barge, Leighton

Stealth, will be used to install this 26”

diameter pipeline by the S-Lay method.

Leighton Contractors Malaysia

General Manager, Tony Harvey said the

award of the water infrastructure project

reflected Leighton’s commitment to

Malaysia and its niche area of expertise

in submarine pipeline installation.

“We are very pleased to be awarded

this project, which builds on our 15

years experience delivering quality

infrastructure in Malaysia,” he said.

“This project utilises the specialised

fleet of marine assets and the significant

experience that Leighton has in the

offshore sector is complemented with

the engineering expertise to address

the technical challenges working in

this environment.”

ON TRACK TO DELIVER

Work commenced in May and the

Leighton Malaysia project team was

mobilised over a period of two weeks.

The Leighton Stealth pipelay was

mobilised to site in early July, which

meant the team had only six weeks to

complete all engineering, procurement,

and site preparation works, most of

which is now complete.

The Domestic Shipping License has

been a real challenge as the Leighton

Stealth had never worked in Malaysian

waters previously. This was overcome

with some excellent support from the

Ministry of Energy, Green Technology

and Water.

The main technical challenge is to lay

a thin wall pipe with heavy concrete

weight coating which makes the

pipelaying activity very complicated and

susceptible to buckling. Hence the

project team had to review the method

of laying in terms of high tensions and

have had to introduce buoyancy

throughout the 23km length of

the pipeline.

Edgar Ramani, Project Manager,

said: “This project is undoubtedly very

challenging and complex in technical

as well as budget and schedule terms,

however we have a dedicated, focused

team who are all determined to deliver

the project.

“The team has worked extremely hard

to get where we are in terms of planning

and preparation, and we now need to

focus on ensuring the job is completed

on-time and as safely as possible. We

have a strong team of very experienced

people and I have no doubt the team

will deliver.” �

LEIGHTON CONTRACTORS MALAYSIA HAS BEEN AWARDED A MYR 92 MILLION WATER

PIPELINE PROJECT IN LABUAN, EAST MALAYSIA

LOCATION: KAMPUNG LAWA, BEAUFORT, SABAH AND LABUAN

CLIENT: MINISTRY OF ENERGY, GREEN TECHNOLOGY AND WATER GOVERNMENT OF MALAYSIA

CONTRACT VALUE: MYR 91.91 MILLION

COMMENCEMENT: MAY 2010

COMPLETION: OCTOBER 2010

24

Recent graduates of Leighton’s

Management Development Programme

(MDP) attended their graduation

ceremony at the Kuala Lumpur offices

in May.

The event was organised with Senior

Management present to share their

experience and career progression to

the top of a successful company, and

the challenges faced. Led by David

Savage, Leighton Holdings Chief

Operating Office, the management team

praised the participants for their hard

work and dedication achieving their

goals set out by the MDP.

Established in 2005, MDP provides

participants a solid understanding of all

aspects of the business and necessary

management skills to fast track their

development and career progression

in the company.

The graduates for 2010 were Arran

Cleland, Fergus Eley, Tom Gibson ,

Kithsiri Jayanath, James Polkinghorne,

Chetan Shah, and Michael Yong. Here

are some of their stories being on the

MDP journey:

Arran Cleland TRIL Commercial Manager,

Leighton India

“The MDP gives the participants an

understanding of how the other

disciplines and departments function,

which gives them a more rounded base

of knowledge. It also gives them the

opportunity to seek advice and opinions

from more senior managers, using the

MDP curriculum as an icebreaker.

“The MDP competencies can be used

as your guidelines for learning but the

participant must be self-motivated and

want to develop themselves further.

“Although I have graduated from

the MDP I am aware that the learning

does not stop now. I am committed

to my own continued professional

development and ensuring that we are

training other individuals working

for Leighton.”

Tom Gibson Leighton New Markets Project

Development Manager “The programme provides an excellent

opportunity to perform different roles

with exciting challenges in new cultures

and locations.  By way of the rotational

structure of the programme, you gain an

exposure to the core operations of the

company while continually enhancing

your general management and leadership

skills through active interaction with

senior management and company

executives. On completing the MDP

you can look forward to an accelerated

career within Leighton.”

James Polkinghorne Leighton Offshore Senior Engineer -

Business Development

“It is a well administered programme

involving a diverse, challenging

curriculum and the company places high

expectations on participant’s

performance to ensure it is a valuable

experience.

“I was very fortunate that the MDP

provided me with the opportunity to

work across a range of disciplines and

locations, which allowed me to see

some amazing places and most

pleasingly, meet a lot of fantastic

people.”

Chetan Shah Leighton India Commercial Manager

“It has been a great learning experience

from a professional as well as a personal

perspective. When I was presented

with the opportunity to be enrolled, my

main objective was to gain exposure to

the maximum number of departments

in the shortest possible time to get an

understanding of the business as

a whole.

“One of the most important things

I shall take away is the experience

gained on people management. The

commercial role on the PRP2 offshore

pipe lay project in particular required me

to work with all the departments from

operations, quality, HSE and finance.

“I strongly recommend this programme

for young engineers who want to

develop an overall understanding

of the construction business. The

programme is challenging as it requires

the participant to put on various thinking

caps as they move along through

different departments and this helps

you to take on bigger challenges earlier

in your career. Good luck to all future

participants.” �

COMPANY NEWS

RECENT GRADUATES OF THE MANAGEMENT DEVELOPMENT PROGRAMME SHARE

THEIR EXPERIENCE LEARNING THE ROPES ON BEING A LEIGHTON LEADER

LEIGHTON’S FUTURE LEADERS

25

COMMITTED TO THE GREEN AGENDA STAFF ACROSS LEIGHTON OFFICES GOT THINKING ABOUT THE ENVIRONMENT WHEN

THEY JOINED A GLOBAL MOVEMENT AND MARKED WORLD ENVIRONMENT DAY 2010

recycle and reuse of wastage materials,

and a self-realisation programme where

staff came up with some interesting

short stories relating to the environment.

The project sites such as TRIL and

PRP2 also marked the day. TRIL in

Chennai planted trees, took an

environmental oath and organised

slogan and painting competitions. PRP2

on the other hand also took an oath with

the aim to reduce their carbon footprint

by planting more trees.

MALAYSIA

In Malaysia, supplementary paper

recycle bins were introduced around the

offices and printing tips were sent out to

all staff.

A day before WED at the weekly

happy hour, a low ecological and carbon

footprint vegetarian spread was served.

Staff got into their earth theme casuals

for a dress down Friday with the best

dressed employee receiving a prize.

A group also participated in a green

treasure hunt organised by a local

environmental NGO, MENGO.

Tony Wright, Leighton International

Chief Financial Officer, who handed

out the prizes at the Malaysian office,

commented on the programme: “Events

like these are a great platform for

Leighton to demonstrate itself as a

responsible corporate citizen. It’s also

a fun way for staff to get together while

addressing a pressing issue, the

importance for every individual to

preserve our fragile environment. I

hope to see more initiatives like these

in the pipeline to reinforce Leighton’s

commitment to improving our

environmental impact.” �

Leighton is regarded throughout the

construction industry as a leader in

environmental management. We are

aware of the impact our work can have

on the environment, and as such

environmental management forms

an important element of our project

management and reporting systems.

On June 5th, Leighton supported the

green agenda in a slightly different way

when staff from across the different

business units got into the spirit and

celebrated World Environment Day

(WED).

WED is one of the principal vehicles

through which the UN stimulates

worldwide awareness of the

environment and encourages political

attention and action. The aim of the

Leighton initiative was to boost WED

global message of awareness and

positive action for the environment.  

 

INDIA

India led the way with a week-long list

of activities. At the corporate offices,

they distributed daily emails and held

presentations on green issues.

Highlights were a colourful painting

competition, tree planting, best ideas of

INDUSTRY NEWS

“Events like these are a great platform for Leighton to demonstrate itself as a responsible corporate citizen. It’s also a fun way for staff to get together while addressing a pressing issue, the importance for every individual to preserve our fragile environment”

26 COMPANY NEWS

LEIGHTON HOLDINGS

REPORTS A PROFIT

AFTER TAX OF $400

MILLION AND STRONG

PERFORMANCE IN MINING

AND INFRASTRUCTURE

IN ASIA

QUARTERLY RESULTS On the 17th May 2010,

Leighton Holdings

Limited announced

a profit after tax

(unaudited) of $400m

for the nine months to

31 March 2009 (versus

$220m last year) from revenue of $13.3

billion (versus $13.7bn last year). On an

equivalent exchange rate basis to March

2009, the revenue would have been

$790m higher and also profit after tax

would have been $27m higher.

Leighton Holdings’ Chief Executive,

Wal King, reported that the result

demonstrated the diversity of the

Group’s contracting and project

development portfolio across its core

markets of infrastructure, resources

and property in Australia, Asia and

the Middle East.

“These are strong results for the nine

months which reflect solid performances

in mining and infrastructure, offsetting

the difficulties in property and the

Middle East – particularly Dubai. Our

diversification strategy has helped

sustain the business through the worst

of the global financial crisis (GFC) and,

after the residual GFC issues impacting

property and the Middle East subside,

we see the growth in our core markets

continuing to strengthen,” said Mr King.

“Work in hand at 31 March 2010

stood at $37.5bn which was negatively

impacted by $3.6bn from exchange

rate effects, up from $36.5bn at the

same time last year. New contracts

and variations awarded during the

March quarter totalled $2.5bn. Since

March 2010, an additional $1.8bn of

work has been won and the Group is

in a preferred position on over $6bn of

projects which should be awarded in

the next few months,” he said.

“A sustained level of infrastructure

spending over the next decade,

particularly on transport, water, power

and telecommunications projects,

should continue to provide a good level

of construction opportunities for the

Group’s Australian based operating

companies.

“Sustained demand from China and

the rest of Asia for iron ore and coal

should drive increases in export volumes

which augurs well for contract mining

opportunities.

27

“Demand for energy is also forecast to

remain strong presenting the Group with

significant opportunities over the next

few years to undertake construction

work on a number of Liquefied Natural

Gas and Coal Seam Methane projects,”

he said.

“Asia is expected to continue to grow

providing construction and mining

opportunities in our core markets of

Hong Kong, Indonesia, India and

Mongolia. While Dubai is likely to remain

subdued for some time, the other

markets of the Middle East, underpinned

by their oil and gas reserves, should

continue to support a good level of

construction work.

PROJECT UPDATE

“For the 2009/10 financial year the

Group expects to report full year

revenue of around $18.5bn and net

profit after tax in excess of $600m. The

final results for 2009/10 and dividend

payments are, of course, subject to

market conditions,” said Mr King. �

“These are strong results for the nine months which reflect solid performances in mining and infrastructure”

28

HEAD OFFICE13/F Menara Multi-Purpose

8 Jalan Munshi Abdullah

50100 Kuala Lumpur

Malaysia

t: +60 3 2035 1688

f: +60 3 2693 4388

MALAYSIALeighton Contractors

(Malaysia) Sdn Bhd

14/F Menara Multi-Purpose

8 Jalan Munshi Abdullah

50100 Kuala Lumpur

Malaysia

t: +60 3 2035 1788

f: +60 3 2693 5388

SINGAPORELeighton Engineering & Construction

(Singapore) Pte Ltd

137 Telok Ayer Street

#05-04 Hokkien Huay Kuan Building

Singapore 068602

t: +65 6327 1978

f: +65 6327 1969

OFFSHORELeighton Offshore

137 Telok Ayer Street

#05-04 Hokkien Huay Kuan Building

Singapore 068602

t: +603 2035 1688

f: +603 2691 9264

MIDDLE EASTLeighton Offshore Middle East

Office No. GO1, G/F EIB Building

No. 05, Alfa Building

P.O. Box 502656

DMC #14, Dubai

United Arab Emirates

t: +971 4 423 0300

f: +971 4 427 8145

SRI LANKALeighton Contractors Lanka (Pvt) Ltd

3/F No 34, Hunupitiya Road

Colombo 02

Sri Lanka

t: +94 11 471 4772

f: +94 11 471 4770

INDIALeighton Contractors (India) Pvt Ltd

302 - 303, 3/F Windsor Building

CST Road, Vidyanagari Marg

Kalina, Santacruz (East)

Mumbai 400 098

India

t: +91 22 6719 0000

f: +91 22 6719 0199

4/F Radisson Commercial Plaza

National Highway #8, Mahipalpur

New Delhi 110 037

India

NEW MARKETS13/F Menara Multi-Purpose

8 Jalan Munshi Abdullah

50100 Kuala Lumpur

Malaysia

t: +60 3 2035 1688

f: +60 3 2693 4388

LEIGHTON INTERNATIONAL