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Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

Jan 30, 2018

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Page 1: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

AUGUST2014

Expanding Possibilities

Page 2: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

+ Page 2 + Page 3+ Kentz Group News + Kentz Group News

The first half of the year has been very successful for Kentz, with over 28 million

man-hours delivered on project sites across the Group. Safety continues to be at the forefront of our attention, and our Total Recordable Incident Rate (TRIR) currently stands at 0.21. You can read about some recent safety achievements on pages 16 and 17, such as the Nacala Project in Northern Mozambique reaching one million man-hours without a Lost Time Incident (LTI). We look forward to hosting our sixth Annual Safety Leadership Forum on 2nd September in Houston, Texas. The theme of the forum is ‘Future of Safety Leadership’ and I hope to see many of our valued clients in attendance again this year.

Kentz prides itself on its long-standing relationships with blue chip clients around the globe

and repeat business is the cornerstone of our success. In this edition, you can read about some significant project awards in the first six months of 2014, which demonstrate the strength of those relationships. Page 9 outlines Kentz’s further contract award on the Ichthys LNG Project in Darwin, Australia, worth US$570m. We are now providing an extensive range of services to JKC (a joint venture between JGC Corporation, KBR and Chiyoda Corporation) on this prestigious project, with both our Construction and Engineering and Projects (E&P) Business Units active on the project.

On pages 4 and 5, you will see the E&P Business Unit recently secured a major five-year contract from Fluor Kuwait Company, with an estimated value of US$125m. This is the third consecutive, five-year contract awarded to Kentz by Fluor Kuwait. Elsewhere in the

Middle East, Kentz in Qatar was delighted to continue its long-standing relationship with Qatargas, with the US$125m contract award for the turnkey process package of a new wastewater facility located in the Qatargas LNG Plant, Ras Laffan Industrial City, Qatar (page 13).

Valerus, our newly acquired integrated oil and gas surface facility solutions provider, has performed very well in recent months. You can read about their recent project award contract by Cardón IV on page 11. In May, Valerus successfully completed the Targa Resources cryogenic plant project based in northern Texas in the USA. You can meet some of the team involved on this project on pages 30 and 31.

You can read about Kentz’s acquisition of Alegro Projects Ltd in Canada on pages 6 and 7. The acquisition of Alegro provides a strong fit with Kentz’s existing Canadian operations; and supports Kentz’s 2013 and Beyond strategy to acquire structural mechanical and piping (SMP) capabilities to supplement existing electrical and instrumentation expertise and qualifying Kentz as a multi-disciplinary construction contractor within the Canadian region.

We have also strengthened our senior management team in recent months. I am delighted to welcome Meg Lassarat as the new Chief Financial Officer (CFO) of Kentz; with over 20 years’ global financial experience, Meg is a fantastic edition to our leadership team. Ed Power retired from his position of CFO at the end of May, after 24 years of service with the Group. I would like to thank Ed for all his efforts and commitment to the Company during his tenure and wish him

the very best on his retirement. Following the realignment of the Business Units at the beginning of the year, Joe Lichon was appointed Executive Vice President of the Construction and Technical Support Services (TSS) Business Units, while Iain Eddie was appointed the equivalent role for the E&P Business Unit. You can read more about these appointments on page 23.

Finally, there has recently been a significant development for our organisation: an offer to buy our company was made by SNC-Lavalin, one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. Having considered the offer, our Board of Directors unanimously recommended that shareholders vote in favour of SNC-Lavalin’s offer. Shareholders voted in favour of the acquisition at the Court Meeting and Extraordinary General Meeting (EGM) on 11 August and the acquisition became legally effective on 22 August.

The intention is to integrate SNC-Lavalin’s oil and gas business into ours with combined operations to be managed by a leadership team selected from employees from both companies, under my leadership. More information about the combined entity and our future ambitions will be made available in the coming months and we look forward to communicating this with you all.

Christian BrownChief Executive Officer

ContentsMessage from your CEO

+ Kentz + Kentz

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Fluor Awards Kentz US$125m Five-Year Contract

Kentz Acquires Further Construction Capability In Canada

Shell Awards Foster Wheeler and Kentz JV Contract For Majnoon Oil Field Development

Kentz Secures Further Award For Electrical and Instrumentation Construction Package On Ichthys

Saudi Aramco Affirms Relationship with Kentz

Valerus Wins US$38m Contract From Cardón IV

New Office Opens in Maputo

Qatargas Awards US$125m Contract

Fort Hills Oil Sands Project Grows In Scope

Sadara Awards Kentz In-Plant Work Support Services Contract

Nacala Makes One Million Man-Hour Milestone

Ambatovy Team Continues to Deliver Safely

Progress on Medupi Ramps Up

Nacala Team Making a Difference

T&E Team Reaches Health, Safety and Environmental Goals

Senior Executive Appointments

Valerus Successfully Completes Targa Resources Longhorn Project

Moscow Team hosts WPC

Kentz and GOAL Get Filipinos Back to School

New Partnership Provides Technical Education Opportunities

Kentz Men lead Qatari team to Final

Ethics Column

Meet Our Team

On our cover: Alegro Project in East Edmondton, Alberta, Canada – field installation of pressure piping

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Page 3: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

+ Page 4 + Page 5+ Kentz Group News + Kentz Group News

KOC is currently developing several major projects in the upstream

sector and, in December 2013, appointed Fluor Kuwait to provide comprehensive consulting services, specialising in project management, in support of KOC’s Capital Expenditure Programme. Kentz is currently providing engineering and management services support to Fluor for the project management, co-ordination, planning, front-end design, engineering, tender evaluation, contracting, project controls, contract administration, construction management and training of KOC project staff.

This is the third consecutive, five-year contract awarded to Kentz and includes the construction of new facilities, the upgrade of existing facilities, front-end engineering design through to plant start-up and financial close. The reimbursable contract is being executed through Kentz’s Engineering and Projects Business Unit.

“We are very pleased to have been awarded this major contract that once again demonstrates our ability to win repeat business with core clients. Our focus on client delivery continues to see long-term benefits for the Group and we are delighted to be continuing our long-standing relationship with Fluor in Kuwait, a country where we have served the needs of capital projects since the early 1980s.”Cathal Hurley, Country Manager in Kuwait

Kentz in Kuwait was recently awarded a major five-year contract by Fluor Kuwait Company, with an estimated value of US$125m. Under the terms of the major contract, Kentz will supply multi-disciplinary technical and supervisory personnel on a reimbursable basis to meet Fluor’s supplementary manpower requirements on Fluor’s consultancy services in project management and related activities contract for Kuwait Oil Company (KOC).

New Office LOcatiON

Kentz has been operating in Kuwait for over 30 years and, earlier this year,

the team moved from their old office in Ahmadi Township to a new location. The new office is situated on the third floor of Ajial Mall in Fahaheel, one the oldest business hubs of Kuwait. Kentz designed this modern office with high consideration for the safety and security of staff, as well as for its location and proximity to clients.

Presiding over the opening of the new office were Nouri Al Nouri, Chairman, and Jasem Al Nouri, Managing Director of Kentz’s long-time sponsor and local partner Nouri and Kent Technical Contracting and Maintenance Company, along with Michael Ross Lonergan, Kentz Middle East Regional Development Director.

fLuOr awards KeNtz us$125m five-Year cONtract

+ (L to R): Bert Koopman, Fluor Project Director, and Cathal Hurley, Kentz Country Manager, Kuwait, signing the contract

+ Kentz team in Kuwait

+ (L to R): Cathal Hurley, Nouri Al Nouri, Michael Ross Lonergan and Jasem Al Nouri

+ Kuwait+ Kuwait

Page 4: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

+ Page 6 + Page 7+ Kentz Group News + Kentz Group News

In May 2014, Kentz completed the acquisition of Alegro Ltd, an organisation offering fabrication and construction services to the industrial sector in Western Canada, in a

strategic move that qualifies Kentz as a multi-disciplinary construction contractor within the Canadian region.

The acquisition of Alegro provides a strong fit with Kentz’s existing Canadian operations; and supports Kentz’s 2013 and Beyond strategy to acquire structural mechanical and piping (SMP) capabilities to supplement its existing electrical and instrumentation expertise.

Alegro has long-term customer relationships with repeat business in the Western Canadian market, working on multiple projects throughout the region. Alegro designs, fabricates, and installs piping, structural steel and storage tanks, along with a range of other oilfield equipment. The company has been in operation since 2004 and is based in Nisku, Alberta. Alegro has completed a number of significant facilities projects in Alberta for clients in a variety of sectors – in particular oil and gas.

Alegro adds SMP fabrication, along with site construction capability, to Kentz’s existing in-country electrical, instrumentation and telecoms expertise. It has over 85 employees, based in both the Nisku fabrication facility and on a number of project sites in Alberta and provides Kentz with a presence in the greater Edmonton area, Alberta’s industrial heartland. This will enable Kentz to target, self-perform and execute multi-discipline construction opportunities as a prime construction contractor, as the company does in many other regions globally.

Paul Knowles, Director for Kentz’s Construction Business Unit in Canada, said; “The addition of Alegro to our existing E&I construction business in Canada creates a wealth of opportunity for Kentz in the Canadian oil and gas construction market place. Alegro has a strong record of delivering for its clients and has a strong cultural fit with Kentz; I welcome all at Alegro onboard and look forward to working with them.

“The addition of further construction capability was a key strategic growth initiative identified by Kentz and, combined with our engineering and technical services, gives us a rounded offering to existing and new clients across the region.”

The Canadian Energy Research Institute (CERI) estimates capital investment in the Canadian oil sands to total $207 billion over the 2013-2022 period – this estimate excludes additional maintenance, repairs and operational expenditures. The acquisition further supports Kentz’s capability to target a larger portion of the capital expenditure.

KeNtz acquires further

cONstructiON capabiLitY

+ Canada+ Canada+ Page 6 + Kentz Group News

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Alegro Project in Fort Saskatchewan, Alberta, Canada - complete tank and pipe field installation and fabrication

Alegro team pictured outside their offices in Nisku, Alberta, Canada

iN caNada

Page 5: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

+ Page 8 + Page 9+ Kentz Group News + Kentz Group News

Kentz Secures Further Award For Electrical and Instrumentation Construction Package On Ichthys

+ Iraq + Australia

Kentz was delighted to be awarded an AU$615 million contract for the

electrical and instrumentation (E&I) construction package (ELE-1) for the Ichthys Project Onshore Liquefied Natural Gas (LNG) Facilities in Darwin, Australia.

The Ichthys LNG Project is a joint venture between INPEX group companies (the Operator), major partner Total and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas. The Engineering, Procurement and Construction of the Project’s onshore facilities is being managed by JKC Australia LNG Pty Ltd (JKC), a joint venture between JGC Corporation, KBR and Chiyoda Corporation.

Kentz’s scope of work includes two sub-packages of the electrical and instrumentation works package, namely the provision of services for site-wide E&I installation for the two process trains and utilities, and additional pre-commissioning and commissioning expertise. The Kentz ELE-1 site preparation work will start up in late 2014. The project has a duration of 30 months and will provide more than 1,200 jobs for construction personnel.

The Ichthys Project’s onshore facilities will produce and export liquefied natural gas (LNG) from two LNG trains. It is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of Liquefied Petroleum Gas (LPG) per annum, along with approximately 100,000

barrels of condensate per day at peak.

Michael Murphy, Group President Construction and TSS of Kentz, commented: “It is extremely pleasing to secure a further major construction contract on the Ichthys Project Onshore LNG Facilities – in

this instance for the E&I construction contract. This adds to the recently-awarded structural, mechanical and piping (SMP) contract, the temporary telecoms package that our Engineering and Projects (E&P) business unit is now completing, and the underground electrical and instrumentation construction contract.

“This award, which provides visibility to 2017, further strengthens our position in the Australian LNG market and extends our relationship with JKC through the development of this important asset.”

Chris Warlow, Managing Director Australasia Region of Kentz, said: “Kentz participation in the Ichthys LNG Project demonstrates how our structure and approach to business is flexible, agile and is designed to service successfully customers’ varying execution strategies.

“We are now providing an extensive range of services to JKC on this prestigious project – not only directly as Kentz through both our E&P and Construction Business Units, but also through alliances and joint ventures with leading Australian engineers and constructors.”

“This award, which provides visibility to 2017, further strengthens our position in the Australian LNG market and extends our relationship with JKC through the development of this important asset.” Michael Murphy, Group President Construction and TSS of Kentz

Ichthys E&I Construction package contract signingBack Row (L-R): Duncan Thomas, Subcontract Engineer, JKC Ichthys LNG Joint Venture; Makoto Mikami, Construction Engineer, JKC Ichthys LNG Joint Venture; Bob Hawkins, Deputy Package Manager, JKC Ichthys LNG Joint Venture; Pat Leahy, Construction Proposals Manager, Kentz; Paul Loughnane, Proposals Manager, Kentz; Jimmy Dempsey, Commercial Manager, Kentz; Pat Fogarty, Construction Manager, Kentz; David Blair, Deputy Directorate Subcontract Manager, JKC Australia LNG Pty LtdFront Row (L-R):Brian Kelly, Country Manager, Kentz; Masakazu Fujiwara, Deputy Project Director, JKC Australia LNG Pty Ltd; Chris Warlow, Managing Director, Australasia, Kentz

Shell Awards Foster Wheeler and Kentz JV Contract For Majnoon Oil Field Development

Foster Wheeler Kentz Energy Services DMCC, the Dubai-based joint venture company of

Foster Wheeler and Kentz, was awarded framework contracts by Shell Iraq Petroleum Development B.V, for the provision of engineering, procurement and related services for the Majnoon Oil Field Commercial Production Project in Iraq. Shell is the operator of the Development Production Services Contract for the Majnoon field, which is located in southern Iraq, approximately 70 km north of Basra City.

The services – including concept selection, front-end engineering design, detailed design and contract and procurement services – will be provided primarily by Foster Wheeler Kentz Energy Services DMCC, supported by the Foster Wheeler and Kentz organisations.

The contracts with Shell will run for two years (with an option to extend for an additional year) and will provide a framework for a number of packages of work to be executed, covering new facilities and rehabilitation or upgrade of existing facilities.

“The collaboration between Kentz and Foster Wheeler in Dubai, through this joint venture company will utilise the strengths of both corporations in project delivery. It facilitates the pooling of both companies’ expertise, experience and resources to assist the international oil companies in their investment strategies for the development of oil field sites from Dubai and within Iraq itself,” said John C Walsh, General Manager of Kentz Overseas Company W.L.L. in Dubai. “This contract award highlights the desirability for the added value such

a combination can provide to key clients in strategic business opportunities.”

“There are some unique challenges in Majnoon,” said Tom Hooft van Huysduynen, Project Director Majnoon

Field Development, Shell Iraq Petroleum Development B.V. “Seamless co-operation with Foster Wheeler Kentz Energy Services DMCC is not only essential in moving forward in safety but also in the delivery of the Majnoon Portfolio.”

John C Walsh General Manager of Kentz Overseas Company W.L.L. in Dubai

About the Majnoon ProjectIn 2009, following Iraq’s second licensing round for oil production, the government signed a 20-year service contract with international oil companies Shell and Petronas to develop the Majnoon oilfield. The Majnoon field measures around 60 kilometres long and 15 kilometres wide and is estimated by the Iraqi government to hold around 38 billion barrels of oil. Shell is the lead operator in the consortium with a 45% stake; Petronas holds 30% and the Iraqi South Oil Company the remaining 25%.

About Foster Wheeler Kentz Energy Services DMCCFoster Wheeler Kentz Energy Services DMCC is a limited liability company registered in the Dubai Multi-Commodities Centre free zone in Dubai, owned 50:50 by Foster Wheeler and Kentz. It has offices in the Jumeirah Lakes Towers area of Dubai.

“This contract award highlights the desirability for the added value such a combination can provide to key clients in strategic business opportunities.”John C Walsh, General Manager of Kentz Overseas Company W.L.L, Dubai

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+ Page 10 + Page 11+ Kentz Group News + Kentz Group News

Valerus Wins US$38m Contract From Cardón IV

T he Saudi Arabian Oil Company (Saudi Aramco) recently awarded Kentz a

contract for the engineering, procurement, installation and commissioning of the Supervisory Control and Data Acquisition (SCADA) systems for crude oil producer wells in the Southern Area Oilfield Operations of Saudi Arabia.

The contract builds on Kentz’s previous working relationship with Saudi Aramco and will be executed by the Engineering and Projects Business Unit, running for three years through to 2017.

Kentz will design, install and commission remote terminal units (RTUs) at oil well sites with the necessary field

instrumentation to capture oil wellhead information. In addition, two new SCADA servers will be provided in dedicated Gas Oil Separation Plants (GOSPs). The project will also provide a satellite-based communication network using very small aperture terminals to support data transmission between the RTUs and the SCADA systems.

Jason McNamara, Business Development Manager, Saudi Arabia, said “Kentz is delighted to be performing major EPC works for Saudi Aramco again. Saudi Aramco has been a key client for Kentz since our first works in Saudi Arabia in 1977. This is a landmark award for Kentz and is further evidence of the success of Kentz’s 2013 & Beyond strategy.”

+ Saudi Arabia

Valerus, Kentz’s oil and gas handling company in the US, was awarded a contract by

Cardón IV to provide engineering and procurement of a simplified, early production plant in Punto Fijo, Venezuela. This US$38m contract follows the award in November 2013 for engineering, procurement and construction of a gas conditioning and condensate stabilisation facility, also in Venezuela. Engineering,

procurement and construction for the early production plant in Punto Fijo will enable first gas from the Perla field in Venezuela.

The early production plant – to be designed and constructed on a fast-track execution basis – will be operational by the fourth quarter of 2014 and will deliver 150 million standard cubic feet per day of gas. The permanent installation will operate independently to boost production as necessary from the Perla field. It is anticipated that this project will be a significant step towards developing the full field. Valerus will again combine local resources with Lindsay Venezuela to execute the project.

Lindsay is an oil and gas industry leader in the development of customised, integrated EPC projects. Lindsay has provided procurement and fabrication

services in Venezuela since 1995, and has offices and manufacturing facilities in Houston, Texas, established in 2003. The company has vast construction experience, having installed more than 800,000 HP of gas compression equipment including gas processing facilities, early production and offshore installations. Lindsay is ISO 9001 certified and is committed to implementing high standards in the industry.

Steve Gill, Chief Executive Officer of Valerus, commented: “Valerus is proud to have been awarded this contract to again partner with Cardón IV and to have the opportunity to continue working together to provide energy infrastructure in Venezuela. We look forward to continuing our track record for safely delivering scalable, flexible solutions in Latin America and beyond.”

+ Venezuela

saudi aramcO affirms reLatiONship with KeNtz

“Saudi Aramco has been a key client for Kentz since our first works in Saudi Arabia in 1977.”Jason McNamara, Business Development Manager, Saudi Arabia

“We look forward to continuing our track record for safely delivering scalable, flexible solutions in Latin America and beyond.” Steve Gill, Chief Executive Officer of ValerusSteve Gill

Chief Executive Officer of Valerus

+ Cardón Project 3D model

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+ Page 12 + Page 13+ Kentz Group News + Kentz Group News+ Mozambique + Qatar

Qatargas Awards US$125m Contract

Qatargas’ award of a contract to Kentz for the turnkey process package of

a new wastewater facility at the Qatargas LNG Plant, Ras Laffan Industrial City in Qatar underscores the strength of the two companies’ business relationship.

Kentz’s scope of work is to supply process engineering, procurement, installation, construction and commissioning (EPICC) services to deliver wastewater recycling and reduction facilities to four LNG trains. The contract, valued about US$125m, will be performed and executed through Kentz’s Engineering and Projects (E&P) Business Unit. At peak workforce, Kentz will be employing approximately 440 staff and field personnel, with project completion scheduled for 2016.

Tom Cullen, Country Manager, Qatar, commented: “Kentz is extremely happy to be awarded this package and to continue our long-standing relationship with Qatargas. This award signals the continued achievements of our E&P business in the region and reflects the successful outcome of a focused strategy within one of our core markets. All three Business Units have experienced impressive growth across the Middle East in recent years and we have a very positive outlook across the region.”

At the end of July, Kentz celebrated another milestone in its 16-year

heritage in Mozambique with the official opening of its new premises by Francisco Mazoio on behalf of H.E. Maria Helena Taipo (Minister of Labour) – an investment that signifies the company’s continued commitment to Mozambique. Distinguished guests, clients, strategic partners and Kentz employees from around the world attended the opening ceremony.

In his congratulatory speech, the Chairman of the Board of the Mozambican National Institute of Social Security praised Kentz “for its exemplary conduct towards Mozambican employees, many of whom are in key positions in the company”.

“Kentz has seen many significant milestones in Mozambique since the start of its first mining sector

project in 1998. These include working on some of the country’s distinguished landmark projects such as the Mozal aluminium smelter, Moma Sands, the Beira port expansion project and the Nacala corridor development with client partners that include BHP Billiton, Kenmare Resources, Vale and Sasol Petroleum International,” says Colin Crowley, Kentz Regional Development Director, Africa.

“Kentz remains committed to growing its investments into Mozambique through capital expenditure, increasing its service offering and investing in the skills development of the local Mozambicans who manage and operate Kentz Engineers and Constructors Limitada. Equally important is our investment into the training of skilled resources in the mining and metals, energy, ports development and the oil and gas sectors, which is critical to the further growth of the country.”

Kentz now employs some 2,000 Mozambican nationals, each of whom has the opportunity to benefit from the Company’s strategic skills development programme. In partnership with the Ministry of Labour through INEFP, Kentz has invested $2.5m in its artisan training facility in Tete, which focuses on category two boiler-making, welding, steel erection, rack fabrication, gas welding and cutting and instructor training. To date, Kentz has had 400 trainees graduate from this facility with the current class of 80 trainees scheduled to graduate in late August. This figure will increase further when Kentz opens a similar facility at Nacala

Tom Cullen Country Manager, Qatar

All three Business Units have experienced impressive growth across the Middle East in recent years and we have a very positive outlook across the region.”Tom Cullen, Country Manager, Qatar

NEW OFFICE OPENS IN

MAPUTOtowards the end of September when, in a new initiative, Kentz will provide internships for graduates from Mozambican universities in the fields of project planning, quantity surveying and engineering.

“We will continue to invest in our people, in our partnerships and relationships and to make meaningful contributions to Mozambique and her people,” Colin Crowley added.

Mr Francisco Mazoio, President of the INSS, the Mozambican Social Security Authority and Colin Crowley, Kentz Country Director – Mozambique

(L –R): Jean-Pierre Cave, Commercial Manager - Anadarko, Mark Cassayre, Deputy Chief of Mission US Embassy, John Peffer, President - Anadarko), Ruairi de Burca, Irish Ambassador in Mozambique, Colin Crowley, Kentz Country Director – Mozambique, Eddie du Rand, Managing Director - Foster Wheeler

Kentz Maputo staff, (L-R): Rudi Costa, Business Development Executive, Emilio Munguambe, Country HR/IR Manager, Etivaldo Mabjala, Finance Accountant, Paulino Bila, Finance Accountant Assistant, Valentina Madope, Receptionist, Dail da Silva, Country Financial Controller, Argentina Cossa, Cleaning/tea lady and Flora Zute, Marte Muendane, HR Horizon Administrator

(L – R) Paul Rebelo, Engineering and Projects Business Unit Director – Africa, Emilio Munguambe, Country HR/IR Manager, Marte Muendane, HR Horizons Administrator, Stuart Hunter, Regional Business Unit Director Construction and TSS, Bouke Kooiker, Operations Manager Metals and Mining, Francisco Mazoio [on behalf of H.E. Maria Helena Taipo (Minister of Labour)] President of the INSS - the Mozambican Social Security Authority, Colin Crowley, Country Director, Mozambique, Steven Durant, Regional Construction Business Unit Manager, Nagesh Rugbar, Operations Mozambique

“We will continue to invest in our people, in our partnerships and relationships and to make meaningful contributions to Mozambique and her people.”Colin Crowley, Kentz Regional Development Director, Africa

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+ Page 14 + Page 15+ Kentz Group News + Kentz Group News

Kentz has secured a further scope of work on the telecommunications

contract for the Fort Hills Oil Sands Project in Canada.

Kentz Canada Ltd. is the main telecom contractor for the project. The scope has now been extended to include full engineering, design and procurement of the project telecommunication systems. This CAD$70m (US$64m) order will incorporate reliable and modern state-of-the-art technologies, with a proven track record to ensure the effective construction and

operation of the plant site for the permanent information technology infrastructure. Having been given the original award in March 2013, the project will be running to July 2017 and is being executed out of Kentz’s Calgary engineering centre of excellence in Alberta.

The Fort Hills Oil Sands Project is owned by a limited partnership whose limited partners are Suncor Energy Inc., Total E&P Canada Ltd. and Teck Resources Ltd.; it is operated by Suncor Energy Operating Inc.

Alan McFadden, Country Manager, Canada, commented: “With our Technical Support Services Business Unit having worked on the Fort Hills Project over the course of the last year, we are delighted to be awarded additional remit to the original contract and to bring our Engineering and Projects capability into play.

This is an exciting project for Kentz; not only is it one of our core areas of our key expertise – providing engineering solutions to complex telecoms challenges – it demonstrates the continued growth of our Canadian business over the past five years and the value of offering a broad range of services.”

Alan McFadden Country Manager, Canada

fOrt hiLLs OiL saNds prOject GrOws iN scOpe

+ Saudi Arabia

Sadara Awards Kentz In-Plant Work Support Services Contract

Kentz is pleased to announce that Sadara Chemical Company, a joint venture (JV)

between Saudi Arabian Oil Company (‘Saudi Aramco’) and The Dow Chemical Company (‘DOW’), has awarded it the In-Plant Work Support Services contract for the new Sadara Petrochemical Plants being constructed in Jubail Industrial City II in the Kingdom of Saudi Arabia.

Kentz’ scope of work is to supply manpower, management, supervision, skilled labour force, construction and maintenance equipment, small tools and consumables, and to procure other equipment, materials and services that may be required by Sadara. It also includes support of construction, pre-commissioning, commissioning and start-up activities. The project will be performed on Work Unit Rate and Time Unit Rate bases and will be executed through Kentz Construction and TSS Business Units.

Jason McNamara, Business Development Manager for Saudi Arabian Kentz, commented: “Kentz is delighted to be awarded this package and to be part of the world-renowned Sadara project. Kentz has experienced impressive growth in the past few years in Saudi Arabia, with the award of this contract further strengthening our local presence. Kentz has been working in Saudi Arabia since 1977, and looks forward to executing these works successfully and safely.”

Jason McNamara Business Development Manager, Saudi Arabia

“Kentz has experienced impressive growth in the past few years in Saudi Arabia, with the award of this contract further strengthening our local presence.”Jason McNamara, Business Development Manager, Saudi Arabia

+ Page 14 + Kentz Group News+ Canada

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+ Page 16 + Page 17+ Kentz Group News + Kentz Group News

The project, which began in June 2013, aimed at providing a logistics solution for

the transportation of coal mined in Moatize in Tete Province to the maritime terminal located in Nacala via a railway corridor. The scope of work includes the structural, mechanical, partial electrical and instrumentation and piping (SMEIP) erection as well as providing the commissioning assistance required to construct the main stock yard equipment.

The project team is responsible for the erection of various material-handling equipment including the assembly and installation of interconnecting belt conveyors, one wagon tippler, two stackers, two reclaimers and two shiploaders. The implementation of safety awareness initiatives on a daily basis has instilled a positive attitude and strong commitment in each team member to make this achievement possible. With total manpower currently at 737, this milestone is remarkable taking into account that 85% of the workforce was new to the construction industry, having never worked in this environment before.

Steven Gouws, Project Manager – Metals and Mining, said: “I would like to congratulate each and every person on the Kentz team for their dedication and commitment in achieving this milestone. The Kentz Safety Culture is clearly evident here. Let’s keep our eye on our next target of 1.5 million LTI free man-hours.”

Pieter J. Venter, Construction Business Unit SSH&E Manager, added: “Well done to the team for reaching this important milestone; especially considering the challenging environment, this is a great achievement. Congratulations.”

Martin van den Berg, Project HSE Manager, added: “Safety is an attitude; it’s all about how you approach it. Emphasising job safety and focusing full attention on all the details of the safety programme are the main drivers of this amazing safety record.”

The Kentz team on the Ambatovy project in Madagascar recently entered their fourth

year of operations, from the start of construction in July 2010 through to the present maintenance scope on the project. The team is currently at the production and operations stage, with the scope of work being delivered through the Technical Support Services Business Unit of Kentz, under the stewardship of Colin Long, Project Manager.

Kentz currently has over 300 personnel on site and achieved 388,259 man-hours without a Lost Time Incident (LTI) during the first half of this year. Cumulatively, between the onset of the construction phase and the current maintenance contract, the project has achieved over nine million LTI free man-hours in total. During June of this year, the highest production tonnage was achieved for both nickel

and cobalt, which is a significant achievement for everyone involved.

Ambatovy is a large-tonnage, long-life nickel and cobalt mining enterprise located in Madagascar that ranks among the largest lateritic nickel mining entities in the world. Now in the operations phase ramp-up, once fully operational, Ambatovy will produce 60,000 tonnes of refined nickel; 5,600 tonnes of refined cobalt; and 210,000 tonnes of ammonium sulphate fertilizer annually for at least 29 years. Ambatovy’s nickel production is already Madagascar’s most important export.

As on all Kentz projects across the globe, the importance of being safety aware remains at the forefront for the project team. “Everyone is encouraged to remember that they are their own safety officer,” commented Colin Long, Project Manager. Currently, 98% of personal have completed training courses so as

to minimise production downtime.

Michel Desgagne, Maintenance Manager at Ambatovy, recently presented a safety award to the Kentz’s maintenance department in recognition of their commitment to Ambatovy Health, Safety and Environmental (HSE) policies and procedures.

Aubrey Van Wijk, SSH&E Manager, commented: “Kentz is continually vigilant with regards to safety here at Ambatovy. The concentration points on site are currently Job Safety Environmental Analysis (JSEAs), permits,

the prevention of hand injuries and communication between operations and maintenance”.

NacaLa maKes ONe miLLiON maN-hOur miLestONe The Kentz Nacala Project team in

Northern Mozambique reached a major milestone at the end of May of one million man-hours without a Lost Time Incident (LTI).

+ Mozambique

“Safety is an attitude; it’s all about how you approach it. Emphasising job safety and focusing full attention on all the details of the safety programme are the main drivers of this amazing safety record.”Martin van den Berg, Project HSE Manager

+ Nacala Project team attends safety briefing

+ Madagascar

Ambatovy Team Continues to

Deliver Safely

+ Am

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“The concentration points on site are currently Job Safety Environmental Analysis (JSEAs), permits, the prevention of hand injuries and communication between operations and maintenance”.Aubrey Van Wijk, SSH&E Manager

(L – R): Shaun Hodgson, Mechanical Supervisor, Colin Long, Project Manager, Andrew Harvey, Mechanical Supervisor, receiving the safety award on behalf of Kentz

Page 10: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

+ Page 18 + Page 19+ Kentz Group News + Kentz Group News

The Kentz team on Eskom’s Medupi Power Station has recently been awarded

additional scope for the erection of pipework in the turbine area and is pleased to report steady progress towards completion of the project.

Kentz’s scope of work includes the fabrication and installation of the Air Cooled Condensate (ACC) systems, which extracts the exhaust steam from the generation turbines. The steam then enters a condensing and recycling process before entering the inlet of the steam boilers as condensate, ready to be re-used.

Kentz’s work started on the project in July 2008 and its multi-disciplined expertise consists of the project management, supervision, pre-

commissioning, commissioning assistance and testing of the six ACC Units. Kentz is also providing procurement, shop detailing, supply, fabrication and installation of 26,000 tonnes of structural steelwork, 11,000 tonnes of ducting, 1,800 tonnes of piping, and 40,000 tonnes of mechanical equipment.

The site manpower is currently peaking at 1,443, with the first unit – Unit Six – now in the commissioning phase and Units Four and Five currently being prepared for handover. All major structural erection has been completed on Units Two and Three, with all major erection work on Unit One scheduled for completion by the end of 2014.

With substantial lifting capability required, Kentz purchased a potain tower crane for the

construction and installation of the air-cooled condensers, which span a distance of approximately 100 metres in both length and width, reaching a height of 76 metres.

The Potain MD 1100 has the capability of lifting 10 tonnes at full reach and a maximum of 40 tonnes at reduced reach – it is the largest tower crane currently in use on the African continent.

Safety management remains an integral part of the structural, mechanical, electrical, instrumentation and piping (SMEIP) construction on site – this is done through prioritising and delivering Safety, Security, Health and Environment (SSH&E) awareness campaigns. The project scope executed has been recognised for a number of safety achievements over the years. The most recent safety statistics include over one million man-hours reached without a single Lost Time Incident (LTI) as of July this year and a Total Recordable Incident Rate (TRIR) of just 1.07. Alstom, the French

multinational with interests in electricity generation and rail transport, awarded the project D2E (Dedication to Excellence) for excellent safety performance in 2014.

Don Jarvie, Senior Project Director said: “Since joining the project at the beginning of this year, the Medupi management team – and the workforce in general – has displayed a genuine effort to get the job done, which has made the timely completion possible. The improved progress on the project reflects well for the people of South Africa and their ability to step up to the challenge and safely perform projects of this complexity and magnitude. The project also benefits the local Lephalale people and their community in learning new skills for the future.”

Labour Auditors Find Medupi Team Fully-compliantOver a period of two days in July, a team of 15 inspectors from the South African Department of Labour (DoL) paid a visit to Eskom’s Medupi Power Station in order to conduct a legal compliance audit on the Kentz project site.

The purpose of the audit was specifically to ensure all principal contractors and sub-contractors were complying with the Basic Conditions of Employment Act, the Occupational Health and Safety Act, Unemployment Insurance Fund and the Compensation of Occupational Injuries and Diseases Act, amongst other pieces of related legislation.

The audit was conducted in two stages; the first stage was based on the various administration methods and the second on a physical inspection, which covered all the main areas and activities on site. The DoL inspectors had an opportunity to interact with the Kentz project team, to gain an understanding of the size and scope of work on the project.

The focus of the visit was aimed at addressing the general safety, administrative, construction, driven machinery, facilities and the sub-contractor management regulations.

The team’s hard work and dedication during the audit culminated in receiving positive results, at the formal feedback session on 11th July. The DoL inspector complimented

the ACC Alliance on a well-maintained SSH&E system and no contravention or deviations were issued.

Hennie Meyer, Project SSH&E Manager, commented: “The audit went very well. We are very proud of our achievement and, once again, emphasise that there is no ‘I’ in team. I would like to thank all involved in this audit and the entire team for their efforts towards delivering a safe and healthy environment to work in. Keep up the good work.”

prOGress ON medupi ramps up About Medupi

The Medupi Power Station, located west of Lephalale in the Limpopo Province, is South Africa’s first new greenfield, coal-fired power plant project in two decades. The plant is expected to be the fourth-largest coal-fired power plant in the southern hemisphere and the largest dry-cooled power station in the world. Once operational, the station will represent around 12% of South Africa’s power generation with an operational life estimated at 50 years. ‘Medupi’ is a Sepedi word, which means “rain that soaks parched lands, giving economic relief”.

By the time the last unit is commissioned, the Station will comprise of six boiler or turbine units with a gross nominal capacity of 800MW each, resulting in a total capacity of 4,800 MW. The supercritical design with its higher efficiency will result in better utilisation of both water and coal resources, with consequently improved environmental performance.

“The improved progress on the project reflects well for the people of South Africa and their ability to step up to the challenge and safely perform projects of this complexity and magnitude.”Don Jarvie, Senior Project Director

+ South Africa + South Africa

+ Kentz’s employees pictured working on top of the steel structure at 56 meter level, Medupi Project + Aerial view of the steam ducting from the ACC platform, Medupi Project

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+ Page 20 + Page 21+ Kentz Group News + Kentz Group News

NacaLa team maKiNG a differeNce

HealthIn the interest of maintaining a healthy and informed community, the SSH&E team launched a health awareness campaign on site, which extends to the surrounding locality. The location of the project is considered to be a high risk area for malaria, therefore awareness and prevention programmes are vitally important to ensure a healthy population.

Malaria is a life-threatening blood disease caused by a parasite transmitted to humans by the Anopheles mosquito and understandably is a huge concern in the area. As part of the initiative, the project team attended daily toolbox talks and extensive on-site training focused around the disease. The in-depth information programme educated the team of the potential risks, symptoms, treatments and prevention measures.

All Kentz employees on site received a mosquito anti-repellant wrist band, mosquito nets, repellent lotions and sprays for themselves and their families. A fumigation of the Kentz camp took place and an audit was completed to ensure all rooms within the site camp were equipped with the necessary precautionary kits. The SSH&E team also engaged with the local villagers, based alongside the Kentz camp. They arranged for the fumigation of the village and also provided local families with mosquito nets, repellant lotions

and sprays in a stand to combat the high percentage of malaria cases in the area.

SafetyEarlier this year, Louis Wentzel, Mechanical Superintendent based in Nacala, noticed local municipality workers cutting the grass near the Kentz camp and saw an opportunity to get involved and improve safety standards for those involved. The Kentz team donated safety shoes to the 11 municipal workers, who had previously not worn shoes when cutting the

grass. After issuing Personal Protective Equipment (PPE) to the locals, Kentz staff briefed them on the importance of working safely and highlighted the benefits of using the correct PPE and possible consequences that could result without PPE. The locals have taken this information on board and are now working in a much safer environment.

EnvironmentThe Nacala project team are also very environmentally aware and in a bid to minimise the environmental impact on the local area, a green corridor was formed where trees were planted around the sites allowing them to self-seed and as a result help in the re-establishment of various bird, animal, insect and plant species. The green corridor will also help to minimise the dust that local communities experience during the operational phase of the project. Kentz also played an active role in the annual International Day of Forests by planting two indigenous trees in the camp. In the spirit of environmental conservation, the initiative continued into the following day with the celebration of International World Water Day. This initiative focuses on the importance of fresh water and advocates for the sustainable management of fresh water resources.

The Nacala region, which is prone to many difficulties in sustaining water supply and the management of water waste, motivated the team to fashion a process to produce potable water through an osmosis plant system. This ensures regular water supply to all employees and in turn avoids the occurrence of excessive water waste production. In line with Kentz’s environmental policy, a toolbox talk took place on the subject and Portuguese signs were displayed alongside the osmosis plant machine in order to better inform the local community on ways of saving water on a daily basis.

In these challenging conditions, each member of the Nacala Project Team is committed to providing and maintaining a safer and healthier work environment at all times, which in turn provides many benefits to the local community.

About the Nacala Project

Kentz has been working on the Nacala Corridor Project in Northern Mozambique since July

2013. The project is intended to provide a logistics solution for the transportation of coal mined at Moatize in Tete province to the maritime terminal located in Nacala on the Indian Ocean, via a new 912-kilometre-long railway corridor.

Kentz has been contracted to undertake the structural,

mechanical, electrical and instrumentation erection and to provide commissioning assistance required to construct the main stock yard equipment. The US$38m contract is being executed by the Construction Business Unit, which will mobilise a peak project workforce of 700 staff and field personnel. This workforce will be made up primarily of workers local to Mozambique.

As Kentz’s operations continue to progress well on the Nacala Corridor Project in Northern Mozambique, the Safety, Security, Health and Environment (SSH&E) on-site team has initiated a number of excellent health, safety and environmental campaigns to benefit the wellbeing of the project team members, as well as the local community.

All Kentz employees on site received a mosquito anti-repellant wrist band, mosquito nets, repellent lotions and sprays for themselves and their families.

Demonstration at Kentz site explaining how to use the mosquito nets (L – R): Kimberly Beebe, CSR Coordinator, Steven Gouws, Project Manager, David Boland, Assistant Project Manager, Rafique Fernandes, Preventive Medicine Technician

(L – R): Kimberly Beebe, CSR Coordinator, Lawrence Jani, HR Officer, Rafique Fernandes, Preventive Medicine Technician, distributing mosquito nets and repellent spray to the community of Nacala-Velha

Tree planting at the Kentz camp(L - R): Coubert Nascimento, Vale HSE Manager, Martin Van Den Berg, Kentz HSE Manager, Márcia Espinhal, Kentz HSE Administrator/Environmentalist

Municipality employees, Francisco Resso, Maria Adange, Elias Pedro, Conta Carlos, receiving their safety shoes from Kentz

Kentz’s employees collecting water before going to work on site, following a presentation on the importance of water

+ Mozambique + Mozambique

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+ Page 22 + Page 23+ Kentz Group News + Kentz Group News+ Australia

T&E Team Reaches Health, Safety and Environmental Goals

The health and safety of each team member is the most important goal on every Kentz

Project across the Group. Thus, the Telecommunications (T&E) team on the Chevron-operated Gorgon Project on Barrow Island, Australia was very proud to achieve over 600 days on site recently with zero health and safety incidents.

Working on a project based on a class-A nature reserve also increases the emphasis on preserving the environment. Overall, Kentz’s T&E management and workforce have worked very hard as a team to initiate and deliver on all areas in

this regard, especially in waste management – which has been recognised on numerous occasions by the project. The team is extremely pro-active in the segregation of waste (general rubbish versus recycled rubbish from all materials used on site), as well as the protection of fauna within Kentz work areas, which involves observing tenure boundaries to protect land vegetation near the work areas.

Although Kentz T&E continuously strives for excellence in environmental performance, extra effort during the months of May and June has secured the team the number-one spot on site

in four main areas of success. Firstly, the workforce had no environmental incidents (fauna strikes, chemical spills, tenure breaches, etc.). Kentz also scored an 80% waste management score (waste recycled versus landfill from crib rooms, offices and work material used around site). In addition, the team achieved an average 99% score on all environmental inspections and audits conducted over both months. Lastly, the team was recognised for the timely submission of monthly environmental reports.

Roger Cowell, Construction Manager, says: “The T&E team has been on Barrow Island

for over four years and is fast approaching two years without a recordable incident. Our safety and environmental record has been recognised by the Gorgon Project as one of the best on the island. This is a testament to our way of working, where everyone is committed to following procedures, along with understanding and mitigating the risks we face each hour of the day.”

We congratulate our employees on this outstanding achievement and look forward to seeing the T&E workforce continue to reach their health, safety and environmental goals.

meg Lassarat Chief Financial OfficerMeg Lassarat has been appointed Chief Financial Officer (CFO), following Ed Power’s retirement at the end of May after 24 years of service with the Group

Meg brings over 20 years of global financial experience to Kentz and has been instrumental in driving growth, identifying strategic alternatives and delivering positive bottom-line results in her career to date. Meg’s previous roles include senior finance positions within the energy and resource sector since qualifying as a Certified Public Accountant in the US in 1989.

Most recently, Meg was CFO of UniversalPegasus International, a Houston-based professional engineering and field services organisation. Prior to this role, Meg spent eight years as CFO of Mustang Engineering, a part of the Wood Group. During this time, Meg oversaw a five-fold increase in revenue to over US$1bn and business expansion outside the US into Canada, Europe, Australasia and the Middle East.

Christian Brown, Chief Executive Officer of Kentz, commented: “It has been a great pleasure working alongside Ed in the past three years since I joined the Group. Ed has made a huge contribution to Kentz having been instrumental in its success to date and gaining a great reputation throughout the Group and the investment community. I, along with all the Kentz team, wish him all the best for the future.

“I am very pleased that Meg has joined Kentz and I believe that her senior financial background in the energy and resource sector will bring an invaluable expertise to the Group. I have no doubt Meg will help drive Kentz further towards its long-term aims and I look forward to working with her in continuing to deliver sustainable growth over the long-term.”

joe Lichon Executive Vice President for the Construction and Technical Support Services (TSS) Business UnitsEarlier this year, Joe Lichon was appointed Executive Vice President for the Construction and Technical Support Services (TSS) Business Units. This new role within Kentz builds on the

realignment of the Business Units announced earlier this year; it co-ordinates the regional construction and TSS operations and reports into Group President, Construction and TSS Business Units, Mike Murphy.

Joe joins the Kentz team from CB&I, one of the most complete energy infrastructure focused companies in the world, where he has progressed through a number of senior management roles, most recently to Vice President of Sales for the Americas. During his time with CB&I, Joe has also held senior roles with global account responsibility for both ExxonMobil and Chevron, and operational responsibility for the Asia Pacific and Australia region.

Joe originally joined CB&I in 1990 and spent a decade moving up through the engineering field, before moving towards business development. Following an eight-year period with Fluor from 2000, holding both senior business development and operational roles, he returned to CB&I in 2008.

iain eddie Executive Vice President for Engineering and Projects (E&P)Iain Eddie has been appointed to the role of Executive Vice President for the E&P business unit. Within this role, Iain will assume profit and loss responsibility for all global E&P projects, with the exception of Valerus and the engineering function, which will continue to report directly to Tush Doshi. Since joining Kentz in 2012, Iain has been an active member of the E&P management team, providing both operational and commercial direction to our global portfolio of Engineering, Procurement and Construction (EPC) work. Iain has almost 30 years’ experience in the UK national and international EPC industries, working as a contractor and in private practice. Prior to joining Kentz, Iain worked for AMEC for 20 years in a variety of commercial management positions. He became a director in 2004 and, most recently, held the role of Director for Dispute Resolution, responsible for operational and commercial closures on a number of major projects.

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SENIOR ExECUTIVE APPOINTMENTS

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+ Page 24 + Page 25+ Kentz Group News + Kentz Group News+ USA

Valerus Successfully Completes Targa Resources Longhorn Project

Valerus is proud to celebrate the successful completion of the Targa

Resources 200 MMscf/d (5.7 MMsm3/d) cryogenic plant project, based in Northern Texas in the USA. Delivered in 17 months, Valerus’ scope of work included a total turnkey Engineering, Procurement, Construction (EPC) project, with full facility design and installation including civil, structural, mechanical and electrical, as well as all construction, construction management, commissioning and start-up. This project involved teams from each of Valerus’ three business lines: Compression, Production

Equipment and Major Projects (now including Processing and Treating).

In addition to creating a modular facility for more efficient design and maintenance, Valerus also modified equipment to meet the needs of the client’s Environmental Health & Safety Department and US Environmental Protection Agency (EPA) permit requirements, ensuring all equipment met specifications for minimum emissions in an EPA non-attainment zone.

This was a challenging project requiring a complete turnkey solution, with particular

attention needed to meet stringent environmental permit requirements; it was the first 200 MMscf/d cryogenic plant that Valerus built in the US.

“We are pleased that we were selected for this challenging project to help Targa capitalise on the robust Natural Gas Liquids (NGL) market in the region,” said George Mattiuzzi, Project Manager. “The entire team worked hard to meet the tight schedule without compromising on safety or quality. This project sets a standard for the industry that supports our modular approach to the design and construction of processing plants.”

Congratulations to all the team involved in delivering this project safely and on schedule. You can read about the team involved in this project on pages 30 and 31.

In June, Kentz participated in the 21st World Petroleum Congress (WPC), which was held this year at the

Crocus Expo International Exhibition Centre in Moscow. Senior management from Kentz and Valerus, part of Kentz Group, attended the exhibition and conference, alongside over 5,000 delegates from 50 countries.

Kentz’s clients include international and national oil and natural resource majors, as well as leading engineering and project management companies; thus, the congress provided an ideal opportunity to meet with contacts from across the industry.

The breakout sessions provided a great forum to better understand and discuss the many interesting and challenging projects happening across the world. Of particular interest were the sessions on the Management of Arctic and Deep Water Mega Projects and the Keystones to Building a

Culture of Safety – a number-one priority for Kentz across its global operations.

Moscow provided a truly unique backdrop for the 21st WPC and everyone on the team really enjoyed the spectacular opening ceremony in the Kremlin. Kentz very much looks forward to participating with its clients at the next event to be held in Istanbul in 2017.

Rory O’Donnell, Group Development Officer of Kentz, commented: “Kentz has had an excellent start to 2014 as our clients throughout the world continue to invest in both capital and operational projects. Events such as the WPC provide a great opportunity to catch up with all our clients in one arena, gain knowledge of their projects and challenges, and increase awareness of our own service offering, flexibility and operational agility.”

“The entire team worked hard to meet the tight schedule without compromising on safety or quality.” George Mattiuzzi, Project Manager

+ Russia

mOscOw team hOsts wpc

Rory O’Donnell Group Development Officer

“Kentz has had an excellent start to 2014 as our clients throughout the world continue to invest in both capital and operational projects.”Rory O’Donnell, Group Development Officer

+ The Kentz team at Kentz’s WPC exhibition stand

+ Targa Resources 200 MMscf/d (5.7 MMsm3/d) cryogenic plant project

Page 14: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

+ Page 26 + Page 27+ Kentz Group News + Kentz Group News

KENTz AND GOAL GET FILIPINOS

+ Philippines + Philippines

Back to School

The partnership was formed earlier this year, with the objective of assisting typhoon-

affected communities with the recovery process in the aftermath of Typhoon Haiyan. Thanks to generous donations from employees around the world and Kentz’s matched funding, the Company has committed US$300,000 to the project. By the end of June, five schools had been completed, with the others progressing well.

In anticipation of the agreement with Kentz, GOAL began rehabilitating one school in Pitogo Barangay in March 2014 as a pilot project before the large-scale reconstruction project kicked off. This elementary school has 123 pupils enrolled this year, supported by seven teachers from within the community. The aim of the pilot was to determine the availability of supplies within the market as well as to assess the technical capabilities of local carpenters and welders. Other valuable lessons learned during this process related to the power supply for welding machines, the specification of materials used, time taken for various tasks and the skill levels of locally available labour.

The programme was designed in close collaboration with the Education Cluster, Department of Education, UNICEF, District Heads, the Mayor’s Office and teachers, pupils and community members alike. Throughout the project, GOAL remains committed to engaging with local

carpenters and welders as a means of supporting livelihoods and the local economy; where possible, supplies will also be procured within Jaro. This local focus is aimed at providing community buy-in, as well as building capacity and supporting contractors who had lost or had to sell their assets due to the devastating typhoon of November 2013.

To this end, Kentz’s recruitment team in Manila provided GOAL with a list of potential skilled workers within Jaro municipality for this project. GOAL has hired one of these architects to date and has provided technical training to at least two of the carpenters through the Technical Education and Skills Development Authority (TESDA), which is a government training body responsible for industry-based training in the Philippines.

To ensure the programme was completed within the required timeframe, schools were grouped into batches of either four or five and a specific contractor was asked to bid accordingly. This was done to avoid overwhelming small, local contractors. A bid committee then reviewed the responses based on several criteria, including proven quality workmanship, competitive price, related experience and work delivery schedule. Over the coming months, GOAL will endeavour to continue engaging with Kentz’s list of skilled people and will invite suitably

qualified carpenters and welders throughout the municipality to respond to the tender process for the reconstruction works.

In line with GOAL’s global procurement procedures to ensure value for money in all projects, the contract for construction materials was put to national tender and vendors in Cebu, Manila and Leyte were invited to submit a bid. After rigorous analysis, a vendor located in Tacloban city in Leyte Island was awarded the contract for supplying the construction materials to GOAL. GOAL collected the supplies for the first batch of schools and delivered them to the relevant communities in May. The head teachers in each of the schools took responsibility for the supplies and provided

security guards to watch over the materials throughout the duration of the project.

During the month of June, carpenters and welders started work on the first 16 schools; with daily monitoring provided by GOAL’s nationally-hired staff including two architects and four community mobilisers. GOAL’s initial proposal to Kentz was aimed at rehabilitating two classrooms in each of 39 schools, targeting 11,200 students and 200 teachers across 54 vulnerable communities. However, these targets had to be revisited in light of new plans made by the Department of Education and GOAL will now focus on 29 elementary and secondary schools across 27 communities – in fact, this realignment increases the number of classrooms to be rehabilitated from 78 to 88.

The next steps of the project are to appoint and mobilise contractors for the second batch of schools with a completion deadline of 30th September.

Over the coming months, GOAL will continue to work closely with the Department of Education, updating them on a regular basis on progress to date on each of the targeted schools.

These reconstructed buildings are expected to have a lifespan of at least 25 years meaning generations of families will directly benefit from this project. Furthermore, these rehabilitated schools will assist vulnerable families if future disasters occur as they have been mandated as evacuation centres to provide

refuge to communities on a short-term basis during any natural disaster and in the days immediately after.

Kentz and GOAL are delighted to report steady progress on the School Rehabilitation Programme in the Jaro Municipality on Leyte Island in the Philippines, which is on target to provide almost 5,000 pupils with safe, secure classroom space by the end of 2014.

New Partnership Provides Technical Education Opportunities

Kentz and the Centre for Industrial Technology and Enterprise (CITE) held a ceremony in

early August inaugurating a new partnership in the Philippines between the two organisations. Local government officials presided over the ceremony, along with representatives from both Kentz and CITE.

In conjunction with CITE, Kentz has developed a scholarship scheme that – every three years – provides six students from lower socio-economic backgrounds with their fees and other tuition expenses to attend CITE’s Industrial Technician Programme in Cebu. This CITE programme provides quality and relevant three-year post-secondary and technical-vocational educational

opportunities. It is a broad-based electro mechanical industrial technician’s programme containing elements of mechanical and electrical, so graduates will be qualified to work as electrical, mechanical or instrumentation technicians. Those who successfully complete the three-year training programme through the Kentz scholarship will be considered for employment with Kentz overseas.

Phil Ogden, HR Director – Middle East, Europe and India at Kentz, commented: “We are very excited about launching this partnership with CITE, a leading organisation dedicated to educating and strengthening the community’s social, economic and spiritual wellbeing. With almost 20%

of Kentz’s workforce being Filipino, this is an excellent opportunity for us to give back to the communities from which we regularly recruit. Those who complete the programme will have the opportunity to gain better paid employment and in turn be better placed to support their families – thus improving the standards of living in the community as a whole.”

Jose Soberano III, CITE Chairman, welcomed this partnership into the fold with gratitude and appreciation. “We commend Kentz’s relentless commitment to give the less privileged youth a fighting chance to improve their quality of life and their families through scholarship programmes that truly respond to the nagging facets of poverty,” said Soberano.

+ Pitogo Elementary School – Before

+ Tuba Elementary School – Jaro

+ Alahag Elementary School – Jaro

+ Higasam Elementary School – Jaro

+ Kentz and CITE representatives pictured with the first group of students commencing the Kentz scholarship scheme

+ Pitogo Elementary School – During

+ Pitogo Elementary School – After

Page 15: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

+ Page 28 + Page 29+ Kentz Group News + Kentz Group News

Kentz was proud to have three of its employees selected to represent Qatar on

the international rugby stage at the Asian Five Nations Division 2 Rugby Championship, held in Doha from 20th – 23rd May. Teams from Thailand, Iran, Malaysia and Qatar competed.

Project Engineers Shane Kelly and Colm Coyle both returned to win their eighth and fourth caps respectively, while Robbie Gaule, Business Development Manager, made his debut. These three guys are Irish but the rules of the International Rugby Board (IRB) say that players can qualify

to represent their country of residency after three consecutive years living there immediately preceding a match.

Qatar went into this tournament seeded fourth having been promoted from the third division last year. They had bad luck to be drawn against favorites Thailand in the opening game; it proved to be an extremely physical encounter against a young, fast Thai team, played in high temperatures and even higher humidity. However, after an 80-minute battle, Qatar came out on top with a 24-11 win, lining up for the final against Malaysia.

The 2014 final was Malaysia’s third consecutive final in the second division, having lost on both previous occasions. Unfortunately for Qatar, it was a case of third time lucky for the Asians; in front of a large crowd at Al Arabi Stadium, Malaysia ended Qatar’s seven game winning streak, with a 31-22 margin at the final whistle.

Qatar will stay in Division 2 next year, while Malaysia advances to Division 1. After the tournament, Shane Kelly remains Qatar’s leading try scorer with six tries in eight games.

Congratulations to Shane, Colm and Robbie on this great achievement and good luck in next year’s bid for promotion.

Qatari teamKentz Men lead

to Final

ETHICS COLUMNIs there a difference between entertaining clients and bribing them?

Under Kentz’s Code of Business Conduct, no Kentz employee may take part in

or condone any bribery or corruption. If employees have suspicions about this type of behaviour among colleagues, they should raise their concerns with their line supervisor or tell an appropriate manager.

Bribery is ethically wrong and illegal in most jurisdictions; it may result in conviction with severe penalties including imprisonment. Giving someone a large sum of money, a free holiday for their family or even a car in order to get a contract is partaking in bribery, which is very unethical and both parties could be prosecuted.

Entertaining clients can also be considered a form of bribery and should be exercised with caution. Excessive or inappropriate hospitality falls under the term bribery. However, reasonable and proportionate hospitality – such as hosting clients at an inexpensive sporting event with little monetary value – is deemed acceptable. Laws vary across the many jurisdictions where

Kentz operates and the code cannot outline every situation. Remember, if in any doubt about a given situation, consult your manager who may in turn refer it to the Group Compliance Officer.

For further information on bribery and ethics, please look up Kentz’s Code of Business Conduct on www.kentz.com.

Our Code of Business Conduct states: “A bribe is any gift, loan, payment or other benefit offered, given or received with the intention of gaining a business advantage or inducing improper conduct by the person receiving it. Specifically, this includes clients or government officials who have the potential to make decisions favourable to Kentz or one of its Group companies. It may include excessive or inappropriate hospitality. The giving or receiving of such gifts, loans, payments or benefits, both in relation to government officials and private individuals, is specifically prohibited, unless they are only of a small token nature”.

+ Qatar Rugby Team 2014

Shane Kelly remains Qatar’s leading try scorer with six tries in eight games

+ Page 28 + Page 29+ Kentz Group News + Kentz Group News + Kentz+ Qatar

+ (L-R): Robbie Gaule, Shane Kelly and Colm Coyle

Page 16: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

+ Page 30 + Page 31+ Kentz Group News + Kentz Group News

MeetOurTeam

The Valerus team profiled here was responsible for every aspect of the plant’s

design and construction, providing a complete turnkey operation that included the sourcing, design, fabrication and installation of all equipment, complete commissioning activities and startup. Throughout the process, team members supplied a full range of professional services while working closely with the customer.

In addition to being a successful project, Targa was also a major test –Targa was the first 200 MMscf/d cryogenic plant that Valerus worked on and was one of its largest projects ever. To succeed, every major group within the company – including Compression, Production Equipment, along with Major Projects (which now includes Processing and Treating) – came together as one team. The Targa project successfully went online in May 2014 and the team has since moved on to work on other Valerus projects (You can read more about this project on page 24).

George MattiuzziMy name is George, and I was the Project Manager for the Targa Longhorn Project. In that role, I oversaw all Valerus aspects of the project, with overall responsibility for controlling costs, scheduling and quality. I also functioned as the main interface with the client. Overall, I was very pleased with the performance of our team. We have a tremendous array of talent at Valerus, and projects like this one provide excellent opportunities for them to show their mettle. Away from work, you’re likely to find me on my mountain bike or participating in boy scouts as an adult leader. I have been married to my wife Lauren for 30 years, and we have two teenage sons, Benjamin (17) and Noah (15).

Charles McLeanMy name is Charles and I was the project manager for the design and fabrication of the process modules supervising the shops that built equipment for the plant, including the construction and shipping of modular, skid-mounted components. We’re a relatively new group within Valerus, and we had to hit the ground running. Fortunately, our people are smart, talented and experienced, and they really stepped up to the project. For relaxation, I enjoy fly fishing and I like to build furniture. My wife, Kathi, and I have two children, daughter Calli and son Kevin.

Sam JonesMy name is Sam, and as Director of Engineering for North America Major Projects, I was responsible for making sure work on the Targa Project went according to schedule and specifications. Some of the equipment we installed weighed over 136,000 kg (300,000 lb) and moving it created major logistical challenges. We also encountered bad weather and ended up working through blizzards, howling winds and extremely muddy conditions. Fortunately, we had a client who appreciated our efforts and was committed to working with us in an atmosphere of mutual trust and respect. My wife’s name is Lisa, and we have two grandchildren, Wyatt (3 and a ½ years), and Carson (about 4 months). In my free time, I’m an avid hunter and fisherman, and I’m looking forward to sharing my enthusiasm for the outdoors with both of my grandkids.

Bryan King, IVMy name is Bryan, and I am the Director of Supply Chain for Valerus. Through our review of budgets and close involvement with the engineers on the project, my group was able to support and refine the specifications on the project’s motor control centre, saving Valerus about US$300,000. We also saved another US$500,000 through negotiations with suppliers, for a total saving of US$800,000. My leisure-time activities revolve around my children: Bryan (16), Caden, (14) and Savannah (12). Recently, I participated in a 12-day scouting excursion with my two sons, and I’m treasurer for my son’s water polo team. My wife, Telindalee, and I have been married for 20 years.

Jeff MellandMy name is Jeff, and I am the Lead Process Engineer on the Targa Project. I have been with Valerus for about two years and have about seven years of industry experience. For me, Targa has provided a great opportunity to further develop my individual capabilities while contributing to a growing team with outstanding industry credentials. In my spare time, I enjoy woodworking and have constructed cabinets, shelving

units and various built-ins for our house. My wife is Carolina, and we have two sons, David and Anthony.

Rick BakerMy name is Rick, and I was one of four Commissioning Technicians on the project. Basically, our job is to go in and make sure the plant equipment is ready for startup. With over 25 years of experience, I have found that every job has its unique aspects, but the size and complexity of the Targa plant made it especially interesting. In my free time, I’m an avid reader and especially like to study up on places where I’ll be working. My wife is Angela and we recently celebrated our 17th wedding anniversary. We have a daughter Raychell (15) and I have another daughter, Samantha (26), from a previous marriage.

Ebony PageMy name is Ebony, and I was the Buyer for the Targa Project. In that role, I was responsible for negotiating the best possible deals on everything from valves, fittings and piping to engineering services. As the first project I was assigned to full time, Targa was an important professional milestone for me. Along with working to save

the company money, I had to make sure the materials and services being sourced met our quality requirements and could be delivered as required. What free time I have is spent with my husband and three children; we also have two dogs.

Josh zbornakMy name is Josh, and I managed the engineering and installation of the plant’s control systems, including the programming, screens, control panel wiring, J-box wiring and other various automation-related tasks. For me, a major part of the job was co-ordinating with the various vendors and making sure I fully understood the plant’s control processes and how to integrate them into the skid-based design. I also provided startup, commissioning and construction support during the final phase of the project. My wife, Sarah, and I have been married about five years and have an infant son, Parker, who keeps us pretty busy. My favourite hobbies include kite boarding, hot rodding and spending time on the endless money pit that is my 1990 5.0 LX Mustang.

Bob Welsch My name is Bob, and I was the Lead Project Engineer

responsible for overseeing the implementation of the project design and making sure that the mechanical systems performed to specification. I also supervised and co-ordinated the work of the third-party engineering firm with Valerus offices in Tulsa, Oklahoma, and Houston, Texas. Generally, I don’t get to stay on a project all the way through startup so I found Targa especially interesting. In my spare time, I grow roses and have about seven different varieties in my garden. My wife, Nancy, and I have been married for 44 years; we have a four-year old granddaughter, Alice.

Darrell ThiemannMy name is Darrell, and I was the project’s Commissioning Manager. As the title suggests, my job was to oversee all activities involving commissioning of the plant, including scheduling and co-ordinating crews and vendors. Adding to the challenge, the timelines for the commissioning phase of the project were compressed, requiring us to work long hours without any lowering of quality standards. When I’m not on the job, I’m an avid golfer and try to play a couple of times a week. My wife’s name is Lori, and we’re getting ready to celebrate our 19th wedding anniversary.

+ USA + USA

In this edition, we look at the Valerus’ Targa Longhorn Cryogenic Gas Plant Project near Dallas, Texas. This large cryogenic plant can process up to 5.7 million standard cubic metres (200 million standard cubic feet) of sour natural gas per day. A state-of-the-art facility, the plant consists of inlet separation facilities, an amine treating unit, a glycol dehydration unit, a cryogenic processing plant and supporting equipment.

Page 17: Expanding Possibilities - · PDF fileExpanding Possibilities + Page 2 + Kentz Group News + Kentz Group News + Page 3 T he first half of the year has been very successful for Kentz,

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