Oceaneering

THE INSPECTION STANDARD www.oceaneering.comAugust 2011

THE INSPECTION STANDARD

Long Service AwardsThe Swansea, South Wales office recently had reason for a joint celebration. David (‘Dai’) Hughes reached the remarkable milestone of 45 years continuous service ‘not out’. Congratulations Dai, you must have been a mere boy when you started. Carole Hollingworth, the young looking one in the picture, reached the 30 years milestone (Surely not?).

From left to right: John Staff, Dai, Carole and Alan Parker

45 yearsDai Hughes

30 yearsSteven Chessell, Carole Hollingworth,Nigel Jones, Derek Bromby

20 yearsDavid Gunn, Ian Morgan, Melchor Mabutas, John Scannell, David Dallard, Alan Blackburn, Brian Lornie

15 yearsDerek Marriott, Richard Greenslade,Paul Evans, Paul Dutton, John Boyle, Darren Owen, Kenneth Matheson, Alan Jackson, John Robson, Richard Denmead, Derek Skelton, Sarbini Karim


The newsletter of Oceaneering Inspection

September 2011

www.oceaneering.com

CONTRACT NEWSTwo new major contracts awarded

A VIEW FROM THE CASPIANInsight into life working in the Caspian Region

IN ANGOLAApprentice scheme introduced in Angola

10 yearsMonzar Najami,Bruce Jurgens, Stewart Hepburn, Sharon Paterson, Simeon Marasigan, Paul Hood, Richard Harris, Thomas Ballesteros, David McKinven, Jill Good, James Foley, Philip Espejo, James Murphy, Simon Mason, John Cockburn, Lee Balfour, Coy PoPay, Katherine Broussard, Jason Hebert, Wesley Montgomery, Jason Shevlin

5 yearsScott MacKenzie, Alfie Gardner, Brian Campbell, Jennifer Gallighan,Sarah Jane McCoubrey, Mark Torres, Ashley Burgess, Gareth Evans, Widya Indrajaya, Joseph Kwiatkowski, Lionel Hadley, Taylor Foret, Joshua Meza, Shervin Fox, Amanda Orrick, Ford Innes, Paul Newstead, Stuart Gallacher, Alistair Bakie,Peter Smith, Paul Lafferty, Maria Barata, Gareth Steele, Andrew Hughes, Julie Bushby, Ken Walker, Robert Evans, John Quinn, Raghunathan Venkataraman, Roy Winter, John Bender, Johannes Briedenhann, Abraham Panman, David Davidson, Alasdair Smith, Michelle Morgan, Chad Harding, Pritvish Francis, Pallathukudy Shaju, David Harris, Pallathukudy Shaju, David Harris, Genevieve Davis, Andrew Wilson, Hin Fai Shek, Louise Freeman, Clyde Botha, Simon Bradley, John Smith, Russell Edwards, James McCluskey, William McGrane, Ian Blackburn, Gareth Mugford, Babek Tahirov, Barry McCulloch

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Statements in this newsletter that express belief, expectation or intention, as well as those that are no historical fact, are forward looking. The forward-looking statements include the statements concerning Oceaneering’s expected contract revenue and anticipation average annual revenue. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on current information and expectations of Oceaneering that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: industry conditions; prices of crude oil and natural gas; Oceaneering’s ability to obtain and the timing of new projects; and changes in competitive factors. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. These and other risks are more fully described in Oceaneering’s latest annual report on Form 10-K and is other periodic filings with the Securities and Exchange Commission.

Americas:Station #1 Box 10267227 Clendenning RoadHouma, LA 70363, USA

Tel: +1 985 868 5097Fax: +1 985 868 4871

Angola:Rua Kima Kyenda 309Boavista, Lunda, Angola

Tel: +244 2311 367 +244 2311 071Fax: +244 2310 082

Asia Pacific:No1 Kwong Min Road,Jurong 628704Singapore

Tel: +65 62613211

Australia:Perth Office, 12 McKinnon Street,Jandakot, WA 6164

Tel: (+66) 8 9414 9122Fax: (+61) 9 9414 9133

England and Wales: 109 Bowesfield Lane,Stockton-on-Tees, Cleveland, TS18 3YH, UK

Tel: +44 (0) 1642 604661Fax: +44 (0) 1642 670300

Middle East:PO Box 4074, Abu Dhabi,United Arab Emirates

Tel: +9712 5555 855Fax: +9712 5552 392

PO Box 115215Al Moosa Tower 2, Floor 15,Sheikh Zayed Road, DubaiUnited Arab Emirates

Tel: +971 43117500Fax: +971 43310800

Nigeria:216 Port Harcourt-Aba Road,Opposte Shell Residential Area,Port Harcourt, Rivers State,Nigeria

Tel: +234 846 10070Fax: +234 846 10070

Scotland:Pitmedden Road,Dyce,Aberdeen,AB21 0DP,UK

Tel: +44 (0) 1224 758500Fax: +44 (0) 1224 758519

For enquires contact either your local office or [email protected]

Newsletter.indd 1 6/9/11 14:03:48

THE INSPECTION STANDARD www.oceaneering.comTHE INSPECTION STANDARD www.oceaneering.com/inspection/

Many thanks go out to all Oceaneers who have contributed to this edition of the ‘Inspection Standard’. As always we are offering a meal for two up to the value of £75, at any restaurant of choice to the Oceaneering employee who submits the best article.

This editions winner is Stuart Kenny for his article ‘Advanced inspection technology in the Swiss mountains’ which gives an interesting insight into life working in one of our busiest departments.

For the opportunity to win the meal for two in our next edition of the Inspection Standard please send all articles to myself, Martin Hockley, [email protected]

Good luck!

It’s August and it’s 45 degrees Centigrade in the UAE, over 100 degrees Fahrenheit in the Gulf of Mexico – in both cases with stifling humidity to add to the heat. Meanwhile, in the UK it’s been wet and windy most of the ‘summer’. Nothing new about any of that, then.

Still, business as usual continues in all of these areas, and also in the Caspian, Middle East, Asia and Australia, and other parts of the globe where Oceaneering Inspection conducts its business. Except that in our world nothing is exactly ‘usual’; new challenges emerge everywhere and amongst these we continue to have our successes.

In this edition of the Inspection Standard we report on some new contract awards. Our Inspection and Integrity Management Group have picked up two new customers – Chevron in the UK and JV Gas in Algeria. We are delighted to have won this work and look forward to providing a high level of service to, and establishing strong relationships with, both companies. Equally we are especially pleased that BP have extended our contract for inspection and corrosion management services covering all BP’s offshore installations in the UK North Sea and all associated onshore terminals - this major contract employs in excess of 150 of highly qualified and experienced personnel alone. We are appreciative of the faith and confidence shown by our client in our continuing efforts to work with them to maintain and improve on the service. We were also very proud to have passed the two million man-hour milestone without a single injury or lost time incident on this contract.

We also report in this edition on other notable HSE achievements at Conoco Phillips Teesside crude oil reception facility and Eggborough Power Station in the UK, and achievement in the Caspian. My gratitude to all our personnel who have helped us reach these objectives.

Performing the hazardous work we do in a safe manner is close to all our hearts. Not just in Oceaneering Inspection, but across all of Oceaneering’s diverse businesses safety is our number one ethic. First and foremost we want all our people to return home from work safely. We endeavour to do this by having robust HSE processes, by providing training and importantly by inculcating safety awareness and the cultural expectations which underpin everything. We encourage the reporting of any unsafe working practices and near hits, and we look to share learning.

Finally our successes are all down to the dedication and efforts of the people who work for Oceaneering Inspection. I’d like to recognise Dave Close our Site Manager at ConocoPhillips Teesside for leading the team that delivered the safety goal and thank you to all our long serving employees who are mentioned in this newsletter and those previously. It always surprises me to see the numbers who are hitting these service milestones. To Dai Hughes in Swansea, who has just completed 45 years with the company, a very big thank you too for your contribution and probably also your endurance!

Eric Johnston

Vice President Oceaneering Inspection

Notes from the editor

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An holistic view

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Congratulations to Lemuel Abela who has recently received a safety award for submitting the ‘best quality’, safety observation card. The award was presented by Oceaneering’s client Sonamet, during a morning’s site ‘Toolbox Talk’ for his contribution to Sonatmet’s safety observation programme. Sonamet Construction Manager Kirsten Glesne is seen presenting the award.

Lemuel is employed by Oceaneering as an NDT technician on the Congo River Crossing currently under construction in Angola. The Congo River Crossing is an enabling project for the Angola LNG project in the Southern Africa Business Unit and involves the installation of a gas supply pipeline from Block 0/14 to the Angola LNG Plant, requiring the crossing of the technically challenging Congo River subsea canyon.

Apprentice scheme introduced in Angola

Oceaneering Inspection Angola has introduced an apprenticeship scheme to formalise the training program that will assist with the development of local people. The scheme has been designed to give trainees the comprehensive training required to becoming Oceaneering Inspection technicians of the future.Angolan operations will fill eight trainee positions in 2011, two of which have already been identified and employed. The additional trainees will be recruited from local universities and colleges with Oceaneering attending recruitment events to ensure the highest calibre people are given the opportunity to enter an exciting career with a respected organisation. The scheme involves a combination of on-site and formal training at our AMFA training school in Abu Dhabi, UAE. The training is designed to ensure the trainees achieve their full potential and formal qualifications by internationally recognised certification schemes.It is the intention that the scheme will offer the opportunity to local people on a continuous basis with around six new places offered each year.

In Angola

The whole campaign proved to be a success with the client providing extremely positive feedback following report submittal. This puts Oceaneering in a strong position to be involved in the remaining maintenance works that continue into 2013.

After the exertions of the inspection activities there was the welcome opportunity to take in the sites of Switzerland including an amazing mountain bike ride around the surrounding mountains of the popular ski resort of Verbier. Maybe NDT isn’t all bad after all…



The ever increasing demand for Oceaneering’s Specialist Inspection Services recently provided the opportunity to complete an inspection campaign within the Swiss mountains.

On the Dixence River at the head of the alpine valley Val d’Hérens, stands the concrete gravity dam Le Grand Dixence. At 285 metres (935 ft) high, it is the tallest gravity dam in the world and is part of the Cleuson-Dixence complex.

This colossus structure provides water for four hydroelectricity stations, including the Fionnay power plant which generates a combined maximum capacity of 290 MW over its six turbines.

In order to turbine the water from Le Grand Dixence dam, it was necessary to build and install a nine kilometre long underground gallery, including a large section running from Louvie to Fionnay.

This particular project relates to installations of the central water stations of Fionnay (in Fionnay) and Nendaz (in Riddes). The pipelines have been divided into nine distinct lots and an extensive maintenance program is to be held over the next three years to help improve the in-service life of the lines.

The main purpose of the operation was to re-instate the anti-corrosive coating that lines the inside of the pipework. However, before the coating was to be re-applied, it was a requirement to non-destructively test the welded joints to identify potential in-service defects.

Due to the restriction to test from one side only and the requirement for fully recordable data, the client had specifically requested Phased Array (PA) ultrasonics as the primary method of inspection. PA ultrasonics has the benefit of volumetrically inspecting the weld at an approximate scan speed of 75mm/second. All PA ultrasonics information is recordable which allows for off-site analysis and provides fully auditable data.

The inspection campaign (that required site access by a mountain climbing cable car) was led by Stuart Kenny, Principal Engineer and proved to be extremely challenging. The second member of the team Principal Technician, Huw Lewis describing the works as “the most demanding environment I have ever worked in”.

After gaining access to the pipe entry point both SIS engineers descended down the pipeline aboard a cable driven cart. The cart was controlled by two local operators who spoke as much English as the Oceaneers spoke French….very little.

The pipeline was limited to three metres in diameter and as the light of the pipe entrance quickly disappeared, the only source of illumination was provided by a battery operated torch. In addition to the limited light source, as the cable cart travelled towards its 1500 metre drop, the temperature began to fall dramatically. These conditions were extremely testing and both operators had to remain vigilant to ensure the Oceaneering high standards of safety were adhered to.

The primary survey included testing 19 selected weld sections of approximately two metres in length. The welds were approximately 50 years old and due to the age many fabrication indications were anticipated. The sentencing was based on requirements shown in BS EN 7910:2005, which outlines the acceptance limits for flaws in metallic structures.

The campaign included entry into pipe sections of diameters of less than 1.5 metres. In-service defects had been detected visually. PA ultrasonics was used to quantify the damage under the surface. The inspection involved crawling 40 metres along the pipe to access the defective areas.

Advanced inspection technology in the Swiss mountains

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Huw Lewis looks a little nervous as he travels to work in the mountain cable car.

In March of this year Oceaneering Inspection commenced a new contract for the provision of inspection and corrosion management services onshore and offshore for Chevron North Sea Limited. The Chevron Corporation is one of the world’s leading energy companies, operating in over 180 countries across the globe. Chevron North Sea Limited currently operates three assets within the United Kingdom Continental Shelf (UKCS) all of which will form part of Oceaneering’s inspection scope.

Alba Asset This is a heavy oil field, located 130 miles north east of Aberdeen in an Eocene horizon overlying the Britannia gas field. The field consists of a fixed installation, known as the Alba Northern Platform and a Floating Storage Unit both installed in July 1993.

Captain Asset Located 68 miles north of Aberdeen, Captain comprises a Wellhead Protection Platform and a Floating Production Storage and Offloading vessel.

Erskine Asset This is the first high pressure/high temperature field to be developed on the UKCS and is located 150 miles east of Aberdeen.

The offshore service includes five offshore Inspection Engineers providing management of inspection activities and an interface with Chevron North Sea Limited’s sub-contractors to carry out repair and maintenance activities.

The onshore service includes personnel and facilities to support Chevron’s North Sea Limited’s offshore operations. Initially this will include inspection and integrity management personnel based in Chevron House, Chevron’s Aberdeen Office. In addition Oceaneering will provide specialist support such as corrosion engineering and pressure system support as required.

Oceaneering look forward to forming a strong relationship with a new key customer - Chevron North Sea Limited.

Oceaneering’s Inspection and Integrity Management Department has secured a new 3-year contract providing integrity management support to joint ventures between three major oil and gas operators in two locations in central Algeria. The award further confirms Oceaneering’s position as a leading provider of inspection and integrity services on the global stage.In SalahBP Exploration (El Djazair) Limited and its co-ventures, Société Nationale SONATRACH and Statoil North Africa Gas AS have together developed hydrocarbon reserves in the Sahara Desert region near the town of In Salah, Algeria. The facility has been on-stream since July 2004 and

currently produces around 9 billion cubic metres of gas per year. The dry gas is transported along a 500 kilometre pipeline to the major gas collection point at Hassi R’Mel from where it is exported to markets in Europe.In AmenasThis association between BP Amoco Exploration (In Amenas) Limited (‘BP’) and its association partners, l’Entreprise Nationale Sonatrach and Statoil North Africa Oil AS is the largest wet gas project in Algeria and involves the development and production of natural gas and gas liquids from four wet gas fields in the Illizi Basin of south-eastern Algeria. The project, which was commissioned in July 2006, produces around 10 billion cubic metres of gas and

1.5 million cubic metres of liquids per year andIn order to service the In Salah and In Amenas operations in and out of country a dedicated project team has been assembled and is based in Oceaneering’s Aberdeen office. With the support of specialist departments from within the organisation the team’s main responsibility is to provide a comprehensive integrity support service, which can be as diverse as producing a full failure risk assessment on a key part of the pressure/process plant system, to obtaining visas and mobilising specialist personnel and equipment from all parts of the globe.

Oceaneering secures ‘Integrity Management Support’ contract in Algeria

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Chevron contract award



We are pleased to announce that the first phase of the Asset Condition Evaluation Tool (ACET) backlog project managed and resourced by Oceaneering’s Offshore Design Centre (ODC) in Chandigarh India has been successfully completed ahead of schedule.

ACET is a software system supporting the management of corrosion, inspection and plant integrity processes and is an integral part of the corrosion management strategy. ACET presents the managers and engineers responsible for implementing, maintaining and improving the corrosion management strategy with knowledge and information on equipment condition.

The ACET backlog project was set up initially for BP assets that, prior to 2006 when Oceaneering’s scope of supply was increased were inspected by different companies. As a result a large backlog of inspection data needed to be input into the system - an estimated, 87,000 man-hours of work. The ODC was set up to provide an effective and efficient way to input the large amount of data within a short time frame. The project involves the creation of AutoCAD drawings and the input of reports for vessels and pipe work. Phase One of the project related to, Bruce, Clair and Magnus assets while Phase Two addresses Andrew, ETAP, Harding, West Sole and Cleeton.

Initial ACET training was carried out in July 2010 by John Knott (CAD/Data Services Manager) and Graeme Taylor (CAD/Data Services Support) who spent a month in Chandigarh training twenty CAD

Engineers. A further sixteen CAD Engineers joined the team in 2010 and were trained by Harmeek Singh, Design Engineer. Refresher training was carried out in February 2011 by Wallis Beattie (Data Management Project Manager) and Kirsty Taylor (Quality Assurance Co-ordinator) who during their visit took the opportunity to thank the team for their hard work in completing Phase One of the project by awarding gifts of a plaque and a laptop bag to each of the engineers. Engineering Managers Dileep Kumar and Harmeek Singh were also given gifts of appreciation for supervising the teams and ensuring the work was carried out to plan.

Work completed in 2010 exceeded expectations with over 36,000 reports and drawings entered in to ACET, significantly ahead of pedictions. Oceaneering would like to take this opportunity to thank the team and the managers for their efforts in making this project a real success.

Oceaneering are pleased to announce that BP have extended their current Inspection and Corrosion Management services contract for a further four years to a new completion date in 2015.

The extension follows on from a successful 5-year contract relationship, during which time over 2 million man-hours were worked without an injury or lost time incident. This major contract covers all of BP’s upstream oil and gas facilities in the UK, including offshore installations, onshore terminals and associated pipelines.

The contract is managed from Oceaneering’s operational base in Aberdeen with strategic support provided by a network of UK branches supporting the worksites. Over 150 personnel are employed by Oceaneering on the contract, all dedicated to

helping BP maintain and improve the integrity of their assets. The work consists of integrity and corrosion engineering support, the formulation of inspection strategies and schedules, and the execution of inspections including the utilisation of specialist and advanced NDT technology.

John Watkinson, VP Inspection Europe stated “I am exceptionally pleased to be able to announce this award. For BP to have chosen to extend the agreement by 4-years is testament to the excellent quality of work we have done in support of our customer. The four year extension has specifically been agreed in order to give time for us to fully deliver value from our own ACET inspection software system and our industry leading Non Invasive Inspection (NII) technology”.

BP extends Oceaneering’s ‘Inspection and Corrosion Management’ services contract

ACET backlog project success

Wallis Beattie and Kirsty Taylor with members of the project team during a recent visit to Chandigarh

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Oceaneering Inspection has contracts all over the world in often difficult, but occasionally exotic locations. Dr. Peter McClean Millar In-country Manager for Oceaneering works in one of the fastest growing areas of our business and offers insight into life working in the Caspian Region.

“When people ask me where I work they usually take on a puzzled look and scratch their head when I say, ‘Baku, Azerbaijan’. In recent weeks Azerbaijan won the European Song Contest so friends and family back in Ireland probably won’t be so confused, but for my American friends back in Chicago, where I live, it will still be, go to Iran and Iraq and head north to Russia and you will find it”.

Azerbaijan is a former Russian state which sits on the western side of the Caspian Sea. It has roughly the same land area as Ireland with a total population of just over eight million of which more than two million live in Baku, the capital city. Like many large cities, Baku is noisy and confined; however, the Azerbaijan government is committed to modernising the city and opening up the tourism sector. They are able to do this because of the vast oil wealth buried under the Caspian Sea. It is because of this that Oceaneering is here.

In 2009 Oceaneering secured the Inspection and Integrity Management contract for BP’s assets in the Caspian Region. These assets consist of eight offshore platforms, the Sangachal terminal and the export pipelines. Covering an area of 500 hectares, Sangachal has a processing capacity of over one million barrels per day and a total storage capacity of three million barrels of oil. It is one of the largest oil and gas facilities in the world.

The oil is exported through three major lines running through Azerbaijan, Georgia and Turkey to the Mediterranean and Black Seas. The three pipelines include the Baku-Tiblisi-Ceyhan line which at 1,094 miles is the second longest oil pipeline in the world and runs through mountainous areas which are only accessible for inspection seven months of the year.

The Caspian operation forms part of Oceaneering Inspection’s Africa, Middle East, FSU and Asia Pacific (AMFA) Region, which has its management team based in Dubai, United Arab Emirates, but is supported by our specialist services from the United Kingdom.

During the last two years we have seen continuous growth in the work being done with and the size of the workforce. We are also working closely with BP

on a number of new projects including the Chirag Oil Project (new platform 120km east of Baku) and the pilot of an inspection regime at Sangachal using 3D models. This is a truly exciting project which has the potential to be a real game changer in the field of inspection and monitoring of onshore and offshore assets.

But it is not all work in Baku. Recently we had a team building weekend at the Atlant resort in Nabran in the northern part of Azerbaijan. While the area around Baku tends to be a dry and dusty terrain, Nabran was very reminiscent of Normandy in France. It was great to see a different aspect of Azerbaijan and spend some quality time with the families of our local staff.

The Caspian Integrity Management operation employs over 100 people of which in excess of 30 are Azerbaijan nationals. The following image shows the Management Team, (from left to right) Peter McClean Millar - In Country Manager, Lawrence Slowik – Exports Delivery Manager, Ali Still – NDT Inspection – Coordinator , Gavin McConaghie – HSE Advisor, Derek McNaughtan – Offshore Delivery Manager, Adriaan Volschenk – NDT Rope Access Supervisor. (Missing from photograph: Tim Preston – Sangachal Delivery Manager and Babek Tahirov – Chief Representative).

Working in the Caspian is demanding but it is also rewarding because everyone knows that they can make a difference by endeavouring to keep BP’s operation here safe and efficient. Recently we passed 250,000 hours without a Lost Time Incident. People may not know where Baku is but it is certainly a very important part of Oceaneering’s global operation.

Dr. Peter McClean Millar – June 2011

Caspian Management Team

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A view from the Caspian



A team of 20 Oceaneering technicians led by Chris Smith, NDT Inspection Engineer, have once again undergone training on boiler simulators located in Newcastle, England in preparation for completing inspection work in the most testing of conditions - boilers in close proximity to the reactor core on nuclear installations. This work has proved vital to the efficiency of the boilers in the past although the conditions encountered could not get much more challenging.

Due to the heat and potential contamination in the boilers the inspectors wear air-fed suits and have to manoeuvre through a complex set of boiler tubes to get in the correct position to complete the testing. To apply the ALARP (As Low As Reasonably Practicable) principle requires practise in safe conditions. For this reason simulators create the conditions and work scopes are developed to allow the inspectors to become acclimatised and confident in the simulated conditions within a safe environment before the actual site work is performed. The inspectors are monitored by video and radio communications from a manned control room while completeing the tasks, while keeping the number of personnel allowed into the hazardous conditions to a minimum.

Over the past years a vast amount of successful inspections have been completed on the boilers due to the diligent attitude of the inspectors and the professional training completed.

Oceaneering personnel are renowned for their vigilance and an eye for detail and this was proved again when a team of technicians identified a defect with the potential to cause a significant safety issue.

During the 2011 shutdown, Dale Sutcliffe, Gary Cook and Carl McElvaney formed the Oceaneering inspection team tasked with carrying out a routine inspection of a high pressure pipework bend on Unit 3 Eggborough Power Station. The coal fired station has been generating electricity since 1967 and is located in East Yorkshire, England.

Members of the team noticed a crack propagating from a ‘tapping point’ branch weld to an adjacent ‘warming’ branch weld. The defect was in an area outside the area scheduled for inspection. Nevertheless the alert team immediately reported to the Station Engineer, an action which resulted in a change to the inspection scope for this and other station units.

In recognition of their diligence the three men were proposed for a Safety Award which was presented to them by Paul Tomlinson, the Power Station’s Chief Operating Officer on the 14th of June. Oceaneering also recognised this conscientious approach, by presenting each individual with a monetary voucher and expressing great thanks to all involved.

Nuclear Stations vessel entry training

Eggborough Power Station safety award

Carl McElvaney - Left Gary Cook - Left

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The Oceaneering-O’Neill JV has successfully completed all four phases of the NMPP (New Multi Product Pipeline) project in South Africa for Transnet Limited. The main mechanical works were performed by a JV between Spie Capag-Group 5 and WK Welding.

Phase 1 Kendal to Waltloo, 16” diameter, 89 km length, completed in December 2010.

Phase 2 Alrode to Langlaagte, 16” diameter, 31 km length, completed in January 2011.

Phase 3 Jameson Park to Alrode, 16” diameter, 42 km length, completed in January 2011.

Phase 4 Durban to Jameson Park, 24” diameter, 554 km length, completed in June 2011.

The project started in July 2008 on the line from Kendal to Waltloo and has progressed steadily until its recent completion. The pipeline is another project carried out with Spie Capag as the main contractor. The Oceaneering-O’Neill JV and Spie Capag relationship now dates back more than 25 years with many projects successfully completed around the world.

The main welding works were once again serviced by the Oceaneering X-ray crawler systems, with the daily production peaking at 220 x 24”Ø welds, the day on day average being 160 welds. There were a maximum of 20 personnel employed on the project from Indonesia, South Africa and the UK performing crawler operation, directional X-ray tie in work, interpretation and supervisory duties.

The NDT teams operated out of fivebases at the peak of production, spread over the whole length of the project, with a team being based in Durban to carry out the task of bringing the pipeline through the centre of Durban and the surrounding suburbs for 26 km. The pipeline is due to become fully operational in the last quarter of 2011.

West Africa Oceaneering continues to be awarded key contracts offshore West Africa through a long running and successful relationship with Subsea7, formerly Acergy. In the past Oceaneering has successfully completed offshore pipe lay projects onboard Acergy Polaris for Total Exploration and Production Angola, (TEPA), in Block 17 and Pazflor fields, offshore Angola.

The Pazflor project was a deep water ‘J’ lay project, a first for Oceaneering in West Africa and consisted of 8” and 10” lines inspected by the PipeWIZARD® Automated Ultrasonic Testing system.

Block 17 was an offshore continuation for TEPA of their part of the Angola LNG near shore and onshore pipeline system.

Projects completed and currently ongoing offshore Nigeria include the OSO RE pipeline replacement for Mobil Producing Nigeria Unlimited and the EGP3B Phase 2 Pipelines for Chevron Nigeria Limited. We are also engaged with Subsea7 on OSO RE, EGP3B and ECIP platform hook-ups providing each full NDT services during platform installations.

Papua New GuineaWe have recently commenced work on a major onshore pipeline construction project in the jungles of Papua New Guinea that is supported from Oceaneering’s South East Asia office located in Batam, Indonesia The project consists of 500 km of various diametre lines ranging from 2” to 36”. Services being performed are AUT (automated ultrasonics) on the front end with Omniscan PA (phased array) / ToFD (time of flight diffraction) and radiography on special fabrications such as road and river crossings. The project will last for around two years and will involve many difficult sections through awkward terrain where special consideration for working and moving personnel and equipment safely will be paramount.

In the pipeline

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Oceaneering have concluded an exclusive licensing agreement for the application of microwave inspection technology, and can now offer these services to customers.

Microwave technology provides a unique method for imaging the internal structure of non-metallic materials. The substantial growth in the use of such non-metallic materials in recent years has necessitated the need for new inspection technologies as most conventional non-destructive testing techniques were developed to examine metallic materials. Inspection applications are varied and include Glass Reinforced Plastic (GRP) pipes in power station cooling towers and wind turbine blades.

Oceaneering’s initial focus is directed to the field joints applied to insulate subsea oil flow lines during assembly and to the welds in High-Density Polyethylene (HDPE) piping. In both applications the technology will provide an inspection technique that was previously unavailable. Both applications are related and involve the detection of a faulty bond between two pieces of plastic. To create the bonds, it is important that both sides are heated to

the correct temperature - too cold and the molecules in the plastic will not join together; too hot and the molecules oxidize and will not join together. In both cases, there is no gap, reflector or other physical feature that can be detected by ultrasound or radiography, only a change in the microstructure. The new technology can detect this change and so provide us with an effective detection tool.

A specific application that everyone is familiar with is in respect of the miles of bright yellow pipe being installed to carry natural gas to millions of homes. This technology is the only one that can provide an inspection that covers all of the known failure mechanisms for the welds between sections.

The many business units of Oceaneering International recently came together at the 2011 Offshore Technology Conference (OTC) held in Houston, Texas from 2nd to 5th May. A 29-year attendance record of 78,150 was set with 40 countries represented among the 2,520 exhibiting companies from the major oil producing areas of the world.

Sales personnel from all Oceaneering businesses met key customers, vendors and old friends in a well received and pleasant atmosphere suited to the conference’s intended technology exchange. Planning for 2012 OTC has begun with technical paper abstracts due in September 2011 and dates of 30th April to 3rd May reserved at Reliant Park venue.

It has been celebrations all round for Oceaneering Inspection at ConocoPhillips Teesside crude oil reception facility as they exceeded 200,000 hours without any level of recordable accident or injury.

Dave Close, Oceaneering Site Manager said “This is a fantastic achievement running from the start of the contract in April 2007 to present day and is the result of the excellent safety awareness and behavioural attitude of the full team.”

There has been a significant increase in workload over the period which has resulted in the manning levels more than doubling, but this has in no way affected the group’s safety performance.

Mike Rae, the recently appointed

HSEQ Manager at ConocoPhillips congratulated the group with the encouraging words “Oceaneering are setting the standards on site with regards to safety and are achieving a level of performance that others should aspire to”

The praise did not stop there, as ConocoPhillips Operation Support Manager Lee Murray added “Oceaneering are consistently surpassing on-site safety goals and initiatives”. Eric Johnston, Vice President of Oceaneering Inspection added his congratulations stating, “These things don’t happen by accident, but by hard work and attention to the details”.

Whilst it is recognised by all that Oceaneering’s safety performance is a truly team effort Dave’s leadership qualities have been recognised by Oceaneering who

recently presented him with a HSE award for displaying outstanding leadership and significant contributions to the improvement of our safety culture.

It is the continued hard work and inspiring attitude that is shared amongst the group which has resulted in this fantastic achievement. Keep up the good work!

John Watkinson Vice President (left) presents Dave Close with his award

At last, successful inspection of plastic pipes

ConocoPhillips, Teesside

‘One Oceaneering’ at 2011 OTC Houston

Australasian Oil and Gas exhibition

Technology exhibition at Tata South Wales As announced in the February 2011 edition of the newsletter

Oceaneering have acquired the Global Technical Services Group based in Perth, Western Australia. The acquisition gives the Inspection Division a foothold into an exciting and rapidly expanding new geographical sector.

To announce our arrival in the Australian market we joined forces with other Oceaneering business units to exhibit at the 2011 Australasian Oil and Gas (AOG) exhibition and conference. AOG attracts 10,000 visitors with more than 450 exhibitors. The exhibition was the perfect opportunity for Oceaneering to showcase its latest products and services over three days to influential local interstate and international visitors.

The Inspection team at the exhibition from left to right are Dave Bentley - Advanced NDT Applications Manager, Haroon Cajee - Manager-Asia Pacific, Eric Johnston - Vice President Oceaneering Inspection, Martin Hockley - Marketing Manager and Dave Ryan - Operations Manager.

Visitors to the Oceaneering stand were shown the latest Phased Array technology and recent developments with 3D imaging by the ROV Division.

Tata Steel Strip Products UK (formerly CORUS) recently held a technology exhibition at its Port Talbot Works, South Wales. The company makes hot rolled, cold rolled and metallic coated strip steel. Oceaneering were invited along with a number of other key suppliers to demonstrate new technology available to industry.

Tata Senior Plant Condition Monitoring Engineer Jason Chard (far right) is shown Guided Wave technology by Craig Nutty, Assistant SIS Manager. John Staff, Swansea Branch Manager (far left) and Richard Lobb, RA Manager England and Wales watch on.

5 6



Oceaneering have concluded an exclusive licensing agreement for the application of microwave inspection technology, and can now offer these services to customers.

Microwave technology provides a unique method for imaging the internal structure of non-metallic materials. The substantial growth in the use of such non-metallic materials in recent years has necessitated the need for new inspection technologies as most conventional non-destructive testing techniques were developed to examine metallic materials. Inspection applications are varied and include Glass Reinforced Plastic (GRP) pipes in power station cooling towers and wind turbine blades.

Oceaneering’s initial focus is directed to the field joints applied to insulate subsea oil flow lines during assembly and to the welds in High-Density Polyethylene (HDPE) piping. In both applications the technology will provide an inspection technique that was previously unavailable. Both applications are related and involve the detection of a faulty bond between two pieces of plastic. To create the bonds, it is important that both sides are heated to

the correct temperature - too cold and the molecules in the plastic will not join together; too hot and the molecules oxidize and will not join together. In both cases, there is no gap, reflector or other physical feature that can be detected by ultrasound or radiography, only a change in the microstructure. The new technology can detect this change and so provide us with an effective detection tool.

A specific application that everyone is familiar with is in respect of the miles of bright yellow pipe being installed to carry natural gas to millions of homes. This technology is the only one that can provide an inspection that covers all of the known failure mechanisms for the welds between sections.

The many business units of Oceaneering International recently came together at the 2011 Offshore Technology Conference (OTC) held in Houston, Texas from 2nd to 5th May. A 29-year attendance record of 78,150 was set with 40 countries represented among the 2,520 exhibiting companies from the major oil producing areas of the world.

Sales personnel from all Oceaneering businesses met key customers, vendors and old friends in a well received and pleasant atmosphere suited to the conference’s intended technology exchange. Planning for 2012 OTC has begun with technical paper abstracts due in September 2011 and dates of 30th April to 3rd May reserved at Reliant Park venue.

It has been celebrations all round for Oceaneering Inspection at ConocoPhillips Teesside crude oil reception facility as they exceeded 200,000 hours without any level of recordable accident or injury.

Dave Close, Oceaneering Site Manager said “This is a fantastic achievement running from the start of the contract in April 2007 to present day and is the result of the excellent safety awareness and behavioural attitude of the full team.”

There has been a significant increase in workload over the period which has resulted in the manning levels more than doubling, but this has in no way affected the group’s safety performance.

Mike Rae, the recently appointed

HSEQ Manager at ConocoPhillips congratulated the group with the encouraging words “Oceaneering are setting the standards on site with regards to safety and are achieving a level of performance that others should aspire to”

The praise did not stop there, as ConocoPhillips Operation Support Manager Lee Murray added “Oceaneering are consistently surpassing on-site safety goals and initiatives”. Eric Johnston, Vice President of Oceaneering Inspection added his congratulations stating, “These things don’t happen by accident, but by hard work and attention to the details”.

Whilst it is recognised by all that Oceaneering’s safety performance is a truly team effort Dave’s leadership qualities have been recognised by Oceaneering who

recently presented him with a HSE award for displaying outstanding leadership and significant contributions to the improvement of our safety culture.

It is the continued hard work and inspiring attitude that is shared amongst the group which has resulted in this fantastic achievement. Keep up the good work!

John Watkinson Vice President (left) presents Dave Close with his award

At last, successful inspection of plastic pipes

ConocoPhillips, Teesside

‘One Oceaneering’ at 2011 OTC Houston

Australasian Oil and Gas exhibition

Technology exhibition at Tata South Wales As announced in the February 2011 edition of the newsletter

Oceaneering have acquired the Global Technical Services Group based in Perth, Western Australia. The acquisition gives the Inspection Division a foothold into an exciting and rapidly expanding new geographical sector.

To announce our arrival in the Australian market we joined forces with other Oceaneering business units to exhibit at the 2011 Australasian Oil and Gas (AOG) exhibition and conference. AOG attracts 10,000 visitors with more than 450 exhibitors. The exhibition was the perfect opportunity for Oceaneering to showcase its latest products and services over three days to influential local interstate and international visitors.

The Inspection team at the exhibition from left to right are Dave Bentley - Advanced NDT Applications Manager, Haroon Cajee - Manager-Asia Pacific, Eric Johnston - Vice President Oceaneering Inspection, Martin Hockley - Marketing Manager and Dave Ryan - Operations Manager.

Visitors to the Oceaneering stand were shown the latest Phased Array technology and recent developments with 3D imaging by the ROV Division.

Tata Steel Strip Products UK (formerly CORUS) recently held a technology exhibition at its Port Talbot Works, South Wales. The company makes hot rolled, cold rolled and metallic coated strip steel. Oceaneering were invited along with a number of other key suppliers to demonstrate new technology available to industry.

Tata Senior Plant Condition Monitoring Engineer Jason Chard (far right) is shown Guided Wave technology by Craig Nutty, Assistant SIS Manager. John Staff, Swansea Branch Manager (far left) and Richard Lobb, RA Manager England and Wales watch on.

5 6



A team of 20 Oceaneering technicians led by Chris Smith, NDT Inspection Engineer, have once again undergone training on boiler simulators located in Newcastle, England in preparation for completing inspection work in the most testing of conditions - boilers in close proximity to the reactor core on nuclear installations. This work has proved vital to the efficiency of the boilers in the past although the conditions encountered could not get much more challenging.

Due to the heat and potential contamination in the boilers the inspectors wear air-fed suits and have to manoeuvre through a complex set of boiler tubes to get in the correct position to complete the testing. To apply the ALARP (As Low As Reasonably Practicable) principle requires practise in safe conditions. For this reason simulators create the conditions and work scopes are developed to allow the inspectors to become acclimatised and confident in the simulated conditions within a safe environment before the actual site work is performed. The inspectors are monitored by video and radio communications from a manned control room while completeing the tasks, while keeping the number of personnel allowed into the hazardous conditions to a minimum.

Over the past years a vast amount of successful inspections have been completed on the boilers due to the diligent attitude of the inspectors and the professional training completed.

Oceaneering personnel are renowned for their vigilance and an eye for detail and this was proved again when a team of technicians identified a defect with the potential to cause a significant safety issue.

During the 2011 shutdown, Dale Sutcliffe, Gary Cook and Carl McElvaney formed the Oceaneering inspection team tasked with carrying out a routine inspection of a high pressure pipework bend on Unit 3 Eggborough Power Station. The coal fired station has been generating electricity since 1967 and is located in East Yorkshire, England.

Members of the team noticed a crack propagating from a ‘tapping point’ branch weld to an adjacent ‘warming’ branch weld. The defect was in an area outside the area scheduled for inspection. Nevertheless the alert team immediately reported to the Station Engineer, an action which resulted in a change to the inspection scope for this and other station units.

In recognition of their diligence the three men were proposed for a Safety Award which was presented to them by Paul Tomlinson, the Power Station’s Chief Operating Officer on the 14th of June. Oceaneering also recognised this conscientious approach, by presenting each individual with a monetary voucher and expressing great thanks to all involved.

Nuclear Stations vessel entry training

Eggborough Power Station safety award

Carl McElvaney - Left Gary Cook - Left

7

The Oceaneering-O’Neill JV has successfully completed all four phases of the NMPP (New Multi Product Pipeline) project in South Africa for Transnet Limited. The main mechanical works were performed by a JV between Spie Capag-Group 5 and WK Welding.

Phase 1 Kendal to Waltloo, 16” diameter, 89 km length, completed in December 2010.

Phase 2 Alrode to Langlaagte, 16” diameter, 31 km length, completed in January 2011.

Phase 3 Jameson Park to Alrode, 16” diameter, 42 km length, completed in January 2011.

Phase 4 Durban to Jameson Park, 24” diameter, 554 km length, completed in June 2011.

The project started in July 2008 on the line from Kendal to Waltloo and has progressed steadily until its recent completion. The pipeline is another project carried out with Spie Capag as the main contractor. The Oceaneering-O’Neill JV and Spie Capag relationship now dates back more than 25 years with many projects successfully completed around the world.

The main welding works were once again serviced by the Oceaneering X-ray crawler systems, with the daily production peaking at 220 x 24”Ø welds, the day on day average being 160 welds. There were a maximum of 20 personnel employed on the project from Indonesia, South Africa and the UK performing crawler operation, directional X-ray tie in work, interpretation and supervisory duties.

The NDT teams operated out of fivebases at the peak of production, spread over the whole length of the project, with a team being based in Durban to carry out the task of bringing the pipeline through the centre of Durban and the surrounding suburbs for 26 km. The pipeline is due to become fully operational in the last quarter of 2011.

West Africa Oceaneering continues to be awarded key contracts offshore West Africa through a long running and successful relationship with Subsea7, formerly Acergy. In the past Oceaneering has successfully completed offshore pipe lay projects onboard Acergy Polaris for Total Exploration and Production Angola, (TEPA), in Block 17 and Pazflor fields, offshore Angola.

The Pazflor project was a deep water ‘J’ lay project, a first for Oceaneering in West Africa and consisted of 8” and 10” lines inspected by the PipeWIZARD® Automated Ultrasonic Testing system.

Block 17 was an offshore continuation for TEPA of their part of the Angola LNG near shore and onshore pipeline system.

Projects completed and currently ongoing offshore Nigeria include the OSO RE pipeline replacement for Mobil Producing Nigeria Unlimited and the EGP3B Phase 2 Pipelines for Chevron Nigeria Limited. We are also engaged with Subsea7 on OSO RE, EGP3B and ECIP platform hook-ups providing each full NDT services during platform installations.

Papua New GuineaWe have recently commenced work on a major onshore pipeline construction project in the jungles of Papua New Guinea that is supported from Oceaneering’s South East Asia office located in Batam, Indonesia The project consists of 500 km of various diametre lines ranging from 2” to 36”. Services being performed are AUT (automated ultrasonics) on the front end with Omniscan PA (phased array) / ToFD (time of flight diffraction) and radiography on special fabrications such as road and river crossings. The project will last for around two years and will involve many difficult sections through awkward terrain where special consideration for working and moving personnel and equipment safely will be paramount.

In the pipeline

4



We are pleased to announce that the first phase of the Asset Condition Evaluation Tool (ACET) backlog project managed and resourced by Oceaneering’s Offshore Design Centre (ODC) in Chandigarh India has been successfully completed ahead of schedule.

ACET is a software system supporting the management of corrosion, inspection and plant integrity processes and is an integral part of the corrosion management strategy. ACET presents the managers and engineers responsible for implementing, maintaining and improving the corrosion management strategy with knowledge and information on equipment condition.

The ACET backlog project was set up initially for BP assets that, prior to 2006 when Oceaneering’s scope of supply was increased were inspected by different companies. As a result a large backlog of inspection data needed to be input into the system - an estimated, 87,000 man-hours of work. The ODC was set up to provide an effective and efficient way to input the large amount of data within a short time frame. The project involves the creation of AutoCAD drawings and the input of reports for vessels and pipe work. Phase One of the project related to, Bruce, Clair and Magnus assets while Phase Two addresses Andrew, ETAP, Harding, West Sole and Cleeton.

Initial ACET training was carried out in July 2010 by John Knott (CAD/Data Services Manager) and Graeme Taylor (CAD/Data Services Support) who spent a month in Chandigarh training twenty CAD

Engineers. A further sixteen CAD Engineers joined the team in 2010 and were trained by Harmeek Singh, Design Engineer. Refresher training was carried out in February 2011 by Wallis Beattie (Data Management Project Manager) and Kirsty Taylor (Quality Assurance Co-ordinator) who during their visit took the opportunity to thank the team for their hard work in completing Phase One of the project by awarding gifts of a plaque and a laptop bag to each of the engineers. Engineering Managers Dileep Kumar and Harmeek Singh were also given gifts of appreciation for supervising the teams and ensuring the work was carried out to plan.

Work completed in 2010 exceeded expectations with over 36,000 reports and drawings entered in to ACET, significantly ahead of pedictions. Oceaneering would like to take this opportunity to thank the team and the managers for their efforts in making this project a real success.

Oceaneering are pleased to announce that BP have extended their current Inspection and Corrosion Management services contract for a further four years to a new completion date in 2015.

The extension follows on from a successful 5-year contract relationship, during which time over 2 million man-hours were worked without an injury or lost time incident. This major contract covers all of BP’s upstream oil and gas facilities in the UK, including offshore installations, onshore terminals and associated pipelines.

The contract is managed from Oceaneering’s operational base in Aberdeen with strategic support provided by a network of UK branches supporting the worksites. Over 150 personnel are employed by Oceaneering on the contract, all dedicated to

helping BP maintain and improve the integrity of their assets. The work consists of integrity and corrosion engineering support, the formulation of inspection strategies and schedules, and the execution of inspections including the utilisation of specialist and advanced NDT technology.

John Watkinson, VP Inspection Europe stated “I am exceptionally pleased to be able to announce this award. For BP to have chosen to extend the agreement by 4-years is testament to the excellent quality of work we have done in support of our customer. The four year extension has specifically been agreed in order to give time for us to fully deliver value from our own ACET inspection software system and our industry leading Non Invasive Inspection (NII) technology”.

BP extends Oceaneering’s ‘Inspection and Corrosion Management’ services contract

ACET backlog project success

Wallis Beattie and Kirsty Taylor with members of the project team during a recent visit to Chandigarh

3

Oceaneering Inspection has contracts all over the world in often difficult, but occasionally exotic locations. Dr. Peter McClean Millar In-country Manager for Oceaneering works in one of the fastest growing areas of our business and offers insight into life working in the Caspian Region.

“When people ask me where I work they usually take on a puzzled look and scratch their head when I say, ‘Baku, Azerbaijan’. In recent weeks Azerbaijan won the European Song Contest so friends and family back in Ireland probably won’t be so confused, but for my American friends back in Chicago, where I live, it will still be, go to Iran and Iraq and head north to Russia and you will find it”.

Azerbaijan is a former Russian state which sits on the western side of the Caspian Sea. It has roughly the same land area as Ireland with a total population of just over eight million of which more than two million live in Baku, the capital city. Like many large cities, Baku is noisy and confined; however, the Azerbaijan government is committed to modernising the city and opening up the tourism sector. They are able to do this because of the vast oil wealth buried under the Caspian Sea. It is because of this that Oceaneering is here.

In 2009 Oceaneering secured the Inspection and Integrity Management contract for BP’s assets in the Caspian Region. These assets consist of eight offshore platforms, the Sangachal terminal and the export pipelines. Covering an area of 500 hectares, Sangachal has a processing capacity of over one million barrels per day and a total storage capacity of three million barrels of oil. It is one of the largest oil and gas facilities in the world.

The oil is exported through three major lines running through Azerbaijan, Georgia and Turkey to the Mediterranean and Black Seas. The three pipelines include the Baku-Tiblisi-Ceyhan line which at 1,094 miles is the second longest oil pipeline in the world and runs through mountainous areas which are only accessible for inspection seven months of the year.

The Caspian operation forms part of Oceaneering Inspection’s Africa, Middle East, FSU and Asia Pacific (AMFA) Region, which has its management team based in Dubai, United Arab Emirates, but is supported by our specialist services from the United Kingdom.

During the last two years we have seen continuous growth in the work being done with and the size of the workforce. We are also working closely with BP

on a number of new projects including the Chirag Oil Project (new platform 120km east of Baku) and the pilot of an inspection regime at Sangachal using 3D models. This is a truly exciting project which has the potential to be a real game changer in the field of inspection and monitoring of onshore and offshore assets.

But it is not all work in Baku. Recently we had a team building weekend at the Atlant resort in Nabran in the northern part of Azerbaijan. While the area around Baku tends to be a dry and dusty terrain, Nabran was very reminiscent of Normandy in France. It was great to see a different aspect of Azerbaijan and spend some quality time with the families of our local staff.

The Caspian Integrity Management operation employs over 100 people of which in excess of 30 are Azerbaijan nationals. The following image shows the Management Team, (from left to right) Peter McClean Millar - In Country Manager, Lawrence Slowik – Exports Delivery Manager, Ali Still – NDT Inspection – Coordinator , Gavin McConaghie – HSE Advisor, Derek McNaughtan – Offshore Delivery Manager, Adriaan Volschenk – NDT Rope Access Supervisor. (Missing from photograph: Tim Preston – Sangachal Delivery Manager and Babek Tahirov – Chief Representative).

Working in the Caspian is demanding but it is also rewarding because everyone knows that they can make a difference by endeavouring to keep BP’s operation here safe and efficient. Recently we passed 250,000 hours without a Lost Time Incident. People may not know where Baku is but it is certainly a very important part of Oceaneering’s global operation.

Dr. Peter McClean Millar – June 2011

Caspian Management Team

8

A view from the Caspian



The ever increasing demand for Oceaneering’s Specialist Inspection Services recently provided the opportunity to complete an inspection campaign within the Swiss mountains.

On the Dixence River at the head of the alpine valley Val d’Hérens, stands the concrete gravity dam Le Grand Dixence. At 285 metres (935 ft) high, it is the tallest gravity dam in the world and is part of the Cleuson-Dixence complex.

This colossus structure provides water for four hydroelectricity stations, including the Fionnay power plant which generates a combined maximum capacity of 290 MW over its six turbines.

In order to turbine the water from Le Grand Dixence dam, it was necessary to build and install a nine kilometre long underground gallery, including a large section running from Louvie to Fionnay.

This particular project relates to installations of the central water stations of Fionnay (in Fionnay) and Nendaz (in Riddes). The pipelines have been divided into nine distinct lots and an extensive maintenance program is to be held over the next three years to help improve the in-service life of the lines.

The main purpose of the operation was to re-instate the anti-corrosive coating that lines the inside of the pipework. However, before the coating was to be re-applied, it was a requirement to non-destructively test the welded joints to identify potential in-service defects.

Due to the restriction to test from one side only and the requirement for fully recordable data, the client had specifically requested Phased Array (PA) ultrasonics as the primary method of inspection. PA ultrasonics has the benefit of volumetrically inspecting the weld at an approximate scan speed of 75mm/second. All PA ultrasonics information is recordable which allows for off-site analysis and provides fully auditable data.

The inspection campaign (that required site access by a mountain climbing cable car) was led by Stuart Kenny, Principal Engineer and proved to be extremely challenging. The second member of the team Principal Technician, Huw Lewis describing the works as “the most demanding environment I have ever worked in”.

After gaining access to the pipe entry point both SIS engineers descended down the pipeline aboard a cable driven cart. The cart was controlled by two local operators who spoke as much English as the Oceaneers spoke French….very little.

The pipeline was limited to three metres in diameter and as the light of the pipe entrance quickly disappeared, the only source of illumination was provided by a battery operated torch. In addition to the limited light source, as the cable cart travelled towards its 1500 metre drop, the temperature began to fall dramatically. These conditions were extremely testing and both operators had to remain vigilant to ensure the Oceaneering high standards of safety were adhered to.

The primary survey included testing 19 selected weld sections of approximately two metres in length. The welds were approximately 50 years old and due to the age many fabrication indications were anticipated. The sentencing was based on requirements shown in BS EN 7910:2005, which outlines the acceptance limits for flaws in metallic structures.

The campaign included entry into pipe sections of diameters of less than 1.5 metres. In-service defects had been detected visually. PA ultrasonics was used to quantify the damage under the surface. The inspection involved crawling 40 metres along the pipe to access the defective areas.

Advanced inspection technology in the Swiss mountains

9

Huw Lewis looks a little nervous as he travels to work in the mountain cable car.

In March of this year Oceaneering Inspection commenced a new contract for the provision of inspection and corrosion management services onshore and offshore for Chevron North Sea Limited. The Chevron Corporation is one of the world’s leading energy companies, operating in over 180 countries across the globe. Chevron North Sea Limited currently operates three assets within the United Kingdom Continental Shelf (UKCS) all of which will form part of Oceaneering’s inspection scope.

Alba Asset This is a heavy oil field, located 130 miles north east of Aberdeen in an Eocene horizon overlying the Britannia gas field. The field consists of a fixed installation, known as the Alba Northern Platform and a Floating Storage Unit both installed in July 1993.

Captain Asset Located 68 miles north of Aberdeen, Captain comprises a Wellhead Protection Platform and a Floating Production Storage and Offloading vessel.

Erskine Asset This is the first high pressure/high temperature field to be developed on the UKCS and is located 150 miles east of Aberdeen.

The offshore service includes five offshore Inspection Engineers providing management of inspection activities and an interface with Chevron North Sea Limited’s sub-contractors to carry out repair and maintenance activities.

The onshore service includes personnel and facilities to support Chevron’s North Sea Limited’s offshore operations. Initially this will include inspection and integrity management personnel based in Chevron House, Chevron’s Aberdeen Office. In addition Oceaneering will provide specialist support such as corrosion engineering and pressure system support as required.

Oceaneering look forward to forming a strong relationship with a new key customer - Chevron North Sea Limited.

Oceaneering’s Inspection and Integrity Management Department has secured a new 3-year contract providing integrity management support to joint ventures between three major oil and gas operators in two locations in central Algeria. The award further confirms Oceaneering’s position as a leading provider of inspection and integrity services on the global stage.In SalahBP Exploration (El Djazair) Limited and its co-ventures, Société Nationale SONATRACH and Statoil North Africa Gas AS have together developed hydrocarbon reserves in the Sahara Desert region near the town of In Salah, Algeria. The facility has been on-stream since July 2004 and

currently produces around 9 billion cubic metres of gas per year. The dry gas is transported along a 500 kilometre pipeline to the major gas collection point at Hassi R’Mel from where it is exported to markets in Europe.In AmenasThis association between BP Amoco Exploration (In Amenas) Limited (‘BP’) and its association partners, l’Entreprise Nationale Sonatrach and Statoil North Africa Oil AS is the largest wet gas project in Algeria and involves the development and production of natural gas and gas liquids from four wet gas fields in the Illizi Basin of south-eastern Algeria. The project, which was commissioned in July 2006, produces around 10 billion cubic metres of gas and

1.5 million cubic metres of liquids per year andIn order to service the In Salah and In Amenas operations in and out of country a dedicated project team has been assembled and is based in Oceaneering’s Aberdeen office. With the support of specialist departments from within the organisation the team’s main responsibility is to provide a comprehensive integrity support service, which can be as diverse as producing a full failure risk assessment on a key part of the pressure/process plant system, to obtaining visas and mobilising specialist personnel and equipment from all parts of the globe.

Oceaneering secures ‘Integrity Management Support’ contract in Algeria

2

Chevron contract award



Many thanks go out to all Oceaneers who have contributed to this edition of the ‘Inspection Standard’. As always we are offering a meal for two up to the value of £75, at any restaurant of choice to the Oceaneering employee who submits the best article.

This editions winner is Stuart Kenny for his article ‘Advanced inspection technology in the Swiss mountains’ which gives an interesting insight into life working in one of our busiest departments.

For the opportunity to win the meal for two in our next edition of the Inspection Standard please send all articles to myself, Martin Hockley, [email protected]

Good luck!

It’s August and it’s 45 degrees Centigrade in the UAE, over 100 degrees Fahrenheit in the Gulf of Mexico – in both cases with stifling humidity to add to the heat. Meanwhile, in the UK it’s been wet and windy most of the ‘summer’. Nothing new about any of that, then.

Still, business as usual continues in all of these areas, and also in the Caspian, Middle East, Asia and Australia, and other parts of the globe where Oceaneering Inspection conducts its business. Except that in our world nothing is exactly ‘usual’; new challenges emerge everywhere and amongst these we continue to have our successes.

In this edition of the Inspection Standard we report on some new contract awards. Our Inspection and Integrity Management Group have picked up two new customers – Chevron in the UK and JV Gas in Algeria. We are delighted to have won this work and look forward to providing a high level of service to, and establishing strong relationships with, both companies. Equally we are especially pleased that BP have extended our contract for inspection and corrosion management services covering all BP’s offshore installations in the UK North Sea and all associated onshore terminals - this major contract employs in excess of 150 of highly qualified and experienced personnel alone. We are appreciative of the faith and confidence shown by our client in our continuing efforts to work with them to maintain and improve on the service. We were also very proud to have passed the two million man-hour milestone without a single injury or lost time incident on this contract.

We also report in this edition on other notable HSE achievements at Conoco Phillips Teesside crude oil reception facility and Eggborough Power Station in the UK, and achievement in the Caspian. My gratitude to all our personnel who have helped us reach these objectives.

Performing the hazardous work we do in a safe manner is close to all our hearts. Not just in Oceaneering Inspection, but across all of Oceaneering’s diverse businesses safety is our number one ethic. First and foremost we want all our people to return home from work safely. We endeavour to do this by having robust HSE processes, by providing training and importantly by inculcating safety awareness and the cultural expectations which underpin everything. We encourage the reporting of any unsafe working practices and near hits, and we look to share learning.

Finally our successes are all down to the dedication and efforts of the people who work for Oceaneering Inspection. I’d like to recognise Dave Close our Site Manager at ConocoPhillips Teesside for leading the team that delivered the safety goal and thank you to all our long serving employees who are mentioned in this newsletter and those previously. It always surprises me to see the numbers who are hitting these service milestones. To Dai Hughes in Swansea, who has just completed 45 years with the company, a very big thank you too for your contribution and probably also your endurance!

Eric Johnston

Vice President Oceaneering Inspection

Notes from the editor

1

An holistic view

10

Congratulations to Lemuel Abela who has recently received a safety award for submitting the ‘best quality’, safety observation card. The award was presented by Oceaneering’s client Sonamet, during a morning’s site ‘Toolbox Talk’ for his contribution to Sonatmet’s safety observation programme. Sonamet Construction Manager Kirsten Glesne is seen presenting the award.

Lemuel is employed by Oceaneering as an NDT technician on the Congo River Crossing currently under construction in Angola. The Congo River Crossing is an enabling project for the Angola LNG project in the Southern Africa Business Unit and involves the installation of a gas supply pipeline from Block 0/14 to the Angola LNG Plant, requiring the crossing of the technically challenging Congo River subsea canyon.

Apprentice scheme introduced in Angola

Oceaneering Inspection Angola has introduced an apprenticeship scheme to formalise the training program that will assist with the development of local people. The scheme has been designed to give trainees the comprehensive training required to becoming Oceaneering Inspection technicians of the future.Angolan operations will fill eight trainee positions in 2011, two of which have already been identified and employed. The additional trainees will be recruited from local universities and colleges with Oceaneering attending recruitment events to ensure the highest calibre people are given the opportunity to enter an exciting career with a respected organisation. The scheme involves a combination of on-site and formal training at our AMFA training school in Abu Dhabi, UAE. The training is designed to ensure the trainees achieve their full potential and formal qualifications by internationally recognised certification schemes.It is the intention that the scheme will offer the opportunity to local people on a continuous basis with around six new places offered each year.

In Angola

The whole campaign proved to be a success with the client providing extremely positive feedback following report submittal. This puts Oceaneering in a strong position to be involved in the remaining maintenance works that continue into 2013.

After the exertions of the inspection activities there was the welcome opportunity to take in the sites of Switzerland including an amazing mountain bike ride around the surrounding mountains of the popular ski resort of Verbier. Maybe NDT isn’t all bad after all…


THE INSPECTION STANDARD www.oceaneering.comAugust 2011


Long Service AwardsThe Swansea, South Wales office recently had reason for a joint celebration. David (‘Dai’) Hughes reached the remarkable milestone of 45 years continuous service ‘not out’. Congratulations Dai, you must have been a mere boy when you started. Carole Hollingworth, the young looking one in the picture, reached the 30 years milestone (Surely not?).

From left to right: John Staff, Dai, Carole and Alan Parker

45 yearsDai Hughes

30 yearsSteven Chessell, Carole Hollingworth,Nigel Jones, Derek Bromby

20 yearsDavid Gunn, Ian Morgan, Melchor Mabutas, John Scannell, David Dallard, Alan Blackburn, Brian Lornie

15 yearsDerek Marriott, Richard Greenslade,Paul Evans, Paul Dutton, John Boyle, Darren Owen, Kenneth Matheson, Alan Jackson, John Robson, Richard Denmead, Derek Skelton, Sarbini Karim


The newsletter of Oceaneering Inspection

September 2011

www.oceaneering.com

CONTRACT NEWSTwo new major contracts awarded

A VIEW FROM THE CASPIANInsight into life working in the Caspian Region

IN ANGOLAApprentice scheme introduced in Angola

10 yearsMonzar Najami,Bruce Jurgens, Stewart Hepburn, Sharon Paterson, Simeon Marasigan, Paul Hood, Richard Harris, Thomas Ballesteros, David McKinven, Jill Good, James Foley, Philip Espejo, James Murphy, Simon Mason, John Cockburn, Lee Balfour, Coy PoPay, Katherine Broussard, Jason Hebert, Wesley Montgomery, Jason Shevlin

5 yearsScott MacKenzie, Alfie Gardner, Brian Campbell, Jennifer Gallighan,Sarah Jane McCoubrey, Mark Torres, Ashley Burgess, Gareth Evans, Widya Indrajaya, Joseph Kwiatkowski, Lionel Hadley, Taylor Foret, Joshua Meza, Shervin Fox, Amanda Orrick, Ford Innes, Paul Newstead, Stuart Gallacher, Alistair Bakie,Peter Smith, Paul Lafferty, Maria Barata, Gareth Steele, Andrew Hughes, Julie Bushby, Ken Walker, Robert Evans, John Quinn, Raghunathan Venkataraman, Roy Winter, John Bender, Johannes Briedenhann, Abraham Panman, David Davidson, Alasdair Smith, Michelle Morgan, Chad Harding, Pritvish Francis, Pallathukudy Shaju, David Harris, Pallathukudy Shaju, David Harris, Genevieve Davis, Andrew Wilson, Hin Fai Shek, Louise Freeman, Clyde Botha, Simon Bradley, John Smith, Russell Edwards, James McCluskey, William McGrane, Ian Blackburn, Gareth Mugford, Babek Tahirov, Barry McCulloch

11

Statements in this newsletter that express belief, expectation or intention, as well as those that are no historical fact, are forward looking. The forward-looking statements include the statements concerning Oceaneering’s expected contract revenue and anticipation average annual revenue. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on current information and expectations of Oceaneering that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: industry conditions; prices of crude oil and natural gas; Oceaneering’s ability to obtain and the timing of new projects; and changes in competitive factors. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. These and other risks are more fully described in Oceaneering’s latest annual report on Form 10-K and is other periodic filings with the Securities and Exchange Commission.

Americas:Station #1 Box 10267227 Clendenning RoadHouma, LA 70363, USA

Tel: +1 985 868 5097Fax: +1 985 868 4871

Angola:Rua Kima Kyenda 309Boavista, Lunda, Angola

Tel: +244 2311 367 +244 2311 071Fax: +244 2310 082

Asia Pacific:No1 Kwong Min Road,Jurong 628704Singapore

Tel: +65 62613211

Australia:Perth Office, 12 McKinnon Street,Jandakot, WA 6164

Tel: (+66) 8 9414 9122Fax: (+61) 9 9414 9133

England and Wales: 109 Bowesfield Lane,Stockton-on-Tees, Cleveland, TS18 3YH, UK

Tel: +44 (0) 1642 604661Fax: +44 (0) 1642 670300

Middle East:PO Box 4074, Abu Dhabi,United Arab Emirates

Tel: +9712 5555 855Fax: +9712 5552 392

PO Box 115215Al Moosa Tower 2, Floor 15,Sheikh Zayed Road, DubaiUnited Arab Emirates

Tel: +971 43117500Fax: +971 43310800

Nigeria:216 Port Harcourt-Aba Road,Opposte Shell Residential Area,Port Harcourt, Rivers State,Nigeria

Tel: +234 846 10070Fax: +234 846 10070

Scotland:Pitmedden Road,Dyce,Aberdeen,AB21 0DP,UK

Tel: +44 (0) 1224 758500Fax: +44 (0) 1224 758519

For enquires contact either your local office or [email protected]


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