Contracting Strategy - Mechanical Outfitting

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3. GBS Construction (Mechanical Outfitting)

The Hebron GBS Project mechanical outfitting scope requires the placement of subcontracts for work and the ordering of various types of bulk materials and equipment to be installed during the construction phase. The scope of work for the fabrication subcontracts includes structural steel components, carbon steel, titanium, and 6% molybdenum piping sections, and the procurement of equipment such as pumps, fire protection systems, piping, steel, electrical materials and other items. Generally, KKC has put frame agreements in place to pre-purchase bulk steel and fabrication materials, and free-issue these materials to the fabrication subcontractors. KKC will also procure prefabricated specialized items and subcomponents through a national and international competitive bid process. These specialized items and subcomponents will be integrated into the mechanical outfitting/fabrication of the GBS.

In 2012 and 2013, procurement for major steel fabrication subcontract packages for mechanical outfitting works in the GBS shaft was completed, resulting in a number of awarded subcontract frame agreements to in-province fabricators, including Ameil Constructors Ltd., DF Barnes, GJ Cahill, Kiewit Offshore Services, and Pennecon Energy. All frame agreement work orders have been issued for all fabricated elements, including titanium and alloy piping, as well as carbon steel fabrication of conductor guide decks and access platforms, conductor guide frame, j-tubes and risers, and conductor guide tube subcomponents.  These major fabrication subcontract packages include the following:

Titanium and Alloy Piping

The Titanium and Alloy piping scope includes fabrication and delivery for several systems including:

  • Firewater
  • Seawater handling
  • Produced water
  • Ballast water
  • Shale shutes
  • Oil fill piping (caissons)

The amount of fabrication work is anticipated to be approximately 1300 tonnes consisting of a mix of 6% molybdenum stainless steel, titanium and carbon steel piping ranging in diameter sizing from 2 inch up to 58 inch.  Work below EL27m was bid and awarded in late 2012 and work above EL27m was awarded in 2014, except the oil fill piping (caissons), which were awarded in Q1-2015.

Carbon Steel Fabrication

The carbon steel fabrication subcontracts will consist of a series of individual scopes of work including permanent GBS piping and structural steel, and a variety of miscellaneous carbon steel items. These packages, for EL27m and below, were all competitively bid in 2012, with a number of subcontracts awarded in late 2012 and early 2013. Competitive bidding for remaining scopes of work above EL27m concluded in 2014. The scope and quantity of this work is approximately 6000 tonnes and consists of:

Conductor Guide Decks and Structural Steel

There are five (5) main guide deck structures and one support deck (EL83m) that shall be installed in the GBS. Each guide deck will support a conductor guide frame which comprises 52 conductor guides (861 mm ID) arranged in four rows of 13.  Each guide deck shall have a unique steel layout and steel sizing based on the loading conditions to guide and/or support risers, j-tubes and caissons. Additional items for this scope include the fabrication of various cantilever and access platforms, pipe supports, ladders and staircases, and various smaller structural items.

The deck at EL26m was awarded in mid-2013 and was completed for delivery to Bull Arm in late 2013.

The decks and prefabricated subcomponents for above EL27m were bid and awarded in late 2013 and in 2014.

Conductor Guides and Penetrations

This scope includes the fabrication of the conductor guide and base slab penetration tubes.  The GBS requires a total of fifty two (52), 934mm tubes which will be prefabricated into sections from either pre-supplied tubulars or rolled and spliced steel.  The scope also includes delivery to the Bull Arm site.

Risers and J Tubes

The risers scope includes the two (2) 24” diameter crude export risers that are to be prefabricated subcomponents, including the application of thermal insulation, and delivered to the Bull Arm site (installation and integration of the sections are not part of this scope).  The J Tubes scope includes three (3) 10”, three (3) 16”, two (2) 20”, and three (3) 24”. The total weight of this scope is approximately 580 tonnes.

The Risers and J Tubes below EL27m were awarded in early 2013, and those above EL27m were awarded under existing subcontract frame agreements in late 2013.

Embedment Plates

The embedment plate scope consists of prefabricating a range of cut plate steel and welding them to anchor bolts.  There are a range of plate sizes with a total weight of approximately 960 tonnes.

The embedment plates below EL27m were awarded in 2013, and those above EL27m were awarded under existing subcontract frame agreements in 2014.

Remaining Procurement Activity

Following further development of Detailed Design above EL27m, KKC has determined that, in addition to placing work orders above EL27m under existing in-province fabrication frame agreement subcontracts, additional procurements, including prefabricated subcomponents, was required in 2014.

Procurement above EL27m was accomplished in two prioritized stages, first EL50m and EL71m in Q1-2014, then EL83m, EL98m and EL118m in the latter half of 2014.

Fabrication, including integration of prefabricated subcomponents of the main guide and access decks and conductor guide frames will take place in-province. KKC awarded this work under existing subcontract frame agreements to in-province fabricators.

The total quantity of remaining fabrication is estimated to be 3,000 metric tonnes. Generally, KKC has pre-purchased bulk steel and fabrication materials under existing frame agreements, and will free-issue these materials to the fabrication subcontractors for remaining work. Similarly, prefabricated subcomponents will be free-issued for integration into the fabrication scope of work.

4. Marine Operations