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THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUM Milan. Italy, October 12 th , 2012 PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION SOUTH KOREAN COMPANY STRATEGIES For OVERSEAS CONSTRUCTION A.COLADARCE

Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

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How South Korean Main Contractors strategically spread all over the Oil & Gas market in Middle East creating difficulties to European and rest of world EPC Main Contractors

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Page 1: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

SOUTH KOREAN COMPANY STRATEGIESFor

OVERSEAS CONSTRUCTION

A.COLADARCE

Page 2: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

INDEX• Foreword• Who are the «magic» five Koreans.• GCC projects awarded for Oil & Gas onshore.• Artificial reasons for Koreans competition success.• Reality. • Subcontracting strategy & matrices.• What future?

Page 3: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

FOREWORDFor last year ANIMP Conference, BAIN & Co. compared Italian EP&CContractors and Manufacturers competitivity vs Koreans for the Oil & Gasbusiness.

I guess more than one guy present here has enrolled somebody to «spy»Koreans working side by side to his organization or out of the fence of one of theirmega projects where they are completely alone….to grasp some secrets of theirwinning execution strategy.

In the following slides I’ve collected findings of this watching activity from theiroutside construction or plant fences; opinions of final Owners and PMCs; datafrom Project Control specialists mobilized on site; Subcontractors judgements,etc.

Page 4: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

VERSUS

Years 2009 onwards: the attack to ROW EPC!!

Page 5: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

GCC O&Gas ON SHORE PROJECTS (Chrono) 1/6

Country Project name PackageValue

(Billions Euros)

EPC Contractor EPC based in

K.S.A. Manifa Oil fieldUtility 1,32 JGC Japan

Process 1,32 Snamprogetti Italy

Kuwait Al Zour Oil Refinery

Offshore facilities 0,76 Hyunday Korea

Process 2,72 JGC/GS Japan/Korea

Desulphurization 1,36 SK Korea

Tank farm 0,82 Daelim Korea

Utilities 1,36 Fluor USA

Page 6: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

GCC O&Gas ON SHORE PROJECTS (Chrono) 2/6Country Project name Package Value EPC Contr. EPC based in

UAE Habshan Gas Gas processing 3,37 JGC/Tecnimont Japan/Italy

KSA Jubail Export Refinery (JER)

Aromatics (#3) 0,50 Samsung Korea

Utilities (#5B) 0,30 SK Korea

Interconnecting (#5A) 1,00 Technip Italy

Process Unit #2A 1,22 Technip Italy

Process Units #1 0,86 Tecnicas Reunidas Spain

Tank farm port 0,53 Rotary Singapore

Tank farm plant 0,18 Punj Lloyd India

Process Unit #4 0,57 Chyoda/Samsung Japan/Korea

Process Units #2B 0,65 Daelim Korea

Page 7: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

GCC O&Gas ON SHORE PROJECTS (Chrono) 3/6

GCC O&Gas ON SHORE PROJECTS (Chrono) 1/

Country Project name Package Value EPC Contr. EPC based in

UAE Habshan gas

Offshore facilities 1,22 Hyunday Korea

NGL Recovery 1,51 GS / Petrofac Korea/UK

Tank Farm 0,38 CB&I USA

UAE Das Island Project Gas processing 0,72 Hyunday Korea

UAE Ruwais Refinery Expansion

Utilities 1,96 Samsung Korea

CDU 1,52 SK Korea

RFCC 2,23 GS Korea

Crude Oil Storage 0,84 Daewoo Korea

Offshore facilities 0,37 GS Korea

UAE Ruwais LNG NGL Recovery 1,43 GS / Petrofac Korea/UK

Page 8: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

GCC O&Gas ON SHORE PROJECTS (Chrono) 4/6

GCC O&Gas ON SHORE PROJECTS (Chrono) 1/

Country Project name Package Value EPC Contr. EPC based in

Qatar Barzan Gas Proj. Gas processing 1,72 JGC Japan

K.S.A. Wasit Gas Plant (onshore)

Inlet & Gas Processing 0,73 SK Korea

Power Plant 0,45 Samsung Korea

NGL Fractionation 0,23 SK Korea

SRU 0,45 Jacobs / SK USA/Korea

K.S.A. Shaybah LNG

Inlet & Gas Processing 0,75

Samsung KoreaNGL Recovery/Utilities 0,75

Power Plant 0,30

Increased Gas Process. 0,27

Residential 0,11 MMG K.S.A.

Page 9: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

GCC O&Gas ON SHORE PROJECTS (Chrono) 5/6

GCC O&Gas ON SHORE PROJECTS (Chrono) 1/Country Project name Package Value EPC Contr. EPC based in

UAE Ruwais Clean Diesel Process unit 8,59 GS Korea

K.S.A. Yanbu Oil Refinery (YERP)

Process Units #1 0,58 Tecnicas Reunidas Spain

Process Units #2 0,45 SK Korea

Process Units #3 0,90 Daelim Korea

Process Units #4 0,53 Daelim Korea

Tank farm 0,30 ENNPI Egypt

Pipelines 0,08 Punj Lloyd India

Solids Handling 0,19 Techint Italy

Interconnecting 0,17 MMG K.S.A.

Offsites & Utilities 0,75 KBR USA

Page 10: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

GCC O&Gas ON SHORE PROJECTS (Chrono) 6/ 6

GCC O&Gas ON SHORE PROJECTS (Chrono) 1/Country Project name Package Value EPC Contr. EPC based in

UAE BorougePetrochemical

Ethane Cracker 0,81  Linde Germany

PP PE 1,24 Samsung /Tecnimont Korea/Italy

Utilities 0,71 Hyunday Korea

UAE Shah Gas ProjOffshore facilities 1,13 Samsung Korea

Gas Processing 2,64 Saipem Italy

The «Magic 5» got 33,0 Billions Euro out of 55,9 Bl. in GCC (2009-2010)

Page 11: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

WHAT RESTS TO THE REST OF THE WORLD IN GCC

Page 12: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

ARTIFICIAL REASONS FOR KOREAN COMPETITION SUCCESS.

• KOREANS HAVE HAD A VERY FAVOURABLE KWON DEPRECIATIONAGAINST USD.

• YOU NEVER ENCOUNTER ONE KOREAN ONLY, AGAINST ROWCONTRACTORS:o MULTI ATTENDANCE TO TENDERSo PRE-AGREEMENT TO WHO WILL BE THE WINNER OF THE FLOCK

(I.E. NO DIRECT COMPETITION BUT MUTUAL SUPPORT TOVARIOUS TENDERS LIMITING ALSO THE ACCESS TO ROWCONTRACTORS

• K. EXPORT OVERPRODUCTION OF DOMESTIC MANUFACTURERS.• KOREANS DO EVERYTHING ON DIRECT HIRE OR UTILIZE DOMESTIC

SUBCS HIDDEN UNDER THEIR HATS.

Page 13: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

REALITY• KOREANS MEET THE FINAL OWNER GOALS: SIMPLE & CHEAP PLANTS

IN A SHORT SCHEDULE.• THEY COMPETE EACH OTHER AND BEING LISTED IN SEOUL, THE

FINANCIAL MARKET EXPECTS THEM TO CONTINUE TO REPORTSTRONG REVENUES GROWTH AND GOOD MARGINS FROM ONE YEARTO THE FOLLOWING ONE.

• THEY COMPLETE PROCUREMENT (60%-95%) EARLIER THAN ROW ANDTHIS APPLIES BOTH FOR PROCESS OR INTERC. UNITS: FROM 2 TO 5MONTHS >>> Some evidences from JERP or YERP.

• THEIR SITE CONSTRUCTION IS VERY STRONG WITH THE PROPOSALDEP.T (DURING TENDERING PHASE) AND IN THEEXPEDITERS/INSPECTORS AT HOME/FABRICATION PLACES.

• THEY PREPARE ONE HELL OF A WORK DURING TENDER PHASE.

Page 14: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

REALITY (continued 2)• KOREANS SELDOM RE-SCHEDULE CONSTRUCTION: COMPETENCY &

PRAGMATISM MAKE THEM VERY ADHERENT (WOULD SAY «BONDED»!) TOPLANNED CURVES.

• STILL AT SITE:o THEY START ACTIVITIES ON A RECORD TIME (RARELY AFTER M. 5).o THEY RAMP MANPOWER PEAKS FASTER THAN ANYBODY OF ROW .o THEY VERY SELDOM ARE WRONG ON EFFICIENCY (MANHOURS SPENT

VERSUS MANHOURS PLANNED).

• KOREANS SUBCONTRACT TO LOCAL ENTITIES AS MUCH AS THEY CAN,NEVER UTILIZE A GENERAL CONSTRUCTION CONTRACTOR FOR THEENTIRE CONSTRUCTION EFFORT, OFTEN SUBCONTRACT TO SPECIALISED(& FIDELISED) KOREAN FIRMS WITH BOTH DOMESTIC ANDINTERNATIONAL EXPERIENCE.

Page 15: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

REALITY (continued 3)

• THEIR SUBCONTRACTORS ARE HAPPY TO WORK WITHIN THEIRENVIRONMENT (UNIT PRICES BASED, WITH STRONG COMMITTMENTTO DELIVERABLE AND DELIVERIES ROS DATES).

• ONCE KOREANS WANTS TO GROW IN COMPETITION THEY ARE NOTRELUCTANT TO HAVE AN HIGH PROPORTION OF FIXED COSTS LIKEROW CONTRACTORS:o THEY BRING THEIR OWN CONSTRUCTION EQUIPMENT FLEET

and/oro PREFER TO DIRECTLY HIRE MANPOWER TO BETTER CONTROL

EFFICIENCY OUTPUTS.

Page 16: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

SUBCONTRACTING STRATEGY

PROJECT ORGANIZATION (Home Office)

FULLY EMPOWERED SITE ORGANIZATION

LOC SUBC 1

LOC SUBC 5

LOC SUBC 2

LOC SUBC 6

LOC SUBC 3

LOC SUBC 7

LOC SUBC 4

KOREAN B.UP

SUBC 2

KOREAN B.UP

SUBC 1

PROJECT ORGANIZATION (Home Office)

SITE ORGANIZATION

LOCAL/INTERNATIONAL GENERAL CONSTRUCT.

SUBC.

LOC SUBC 1

LOC SUBC 2

LOC SUBC 3

LOC SUBC 4

Page 17: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

SUBCONTRACTING MATRIX PK 1

EC/DMCPK 2DPC

PK 3Tank Farm

PK 4PC

PK 5HDPE

Piling BOWON LEE CHUNJO BOWON LEE

Civil Works

AL SUWAIDI

KETTANEH

Buildings (Arch) AL MISHAL

Underground KETTANEHTank

Fabric/Erection DOOSAN MECATEC NOT APPLICABLE NOT APPLICABLE

Piping Shop Fab

AL SUWAIDI TCC AL SUWAIDI TCC

Steel Structure / Equipment

ErectionA G Piping

Electrical

Instrumentation

Heavy Rigging CHUNJO

InsulationAL SUWAIDI TCC AL SUWAIDI

BINZAGR

Painting TCC

SAUDI KAYAN construction execution period Feb 2007 - May 2010 (HDPE Aug 2008 - Oct 2010)

Page 18: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

SUBCONTRACTING MATRIX SATORP JERPPK 1

TECNICAS REUNIDAS

PK 2ATECHNIP

PK 2BDAELIM

PK 3SAMSUNG PK 4

CHIYODA/S.SUNG

PK 5ATECHNIP

PK 5BSK E&C

Piling not applicable

ASTALDI

not applicable KELLER DYWIDAG JEC not applicable

Civil Works SINO

PEC (H

P & LP H

DS /C

DU

/VDU

/H2)

NSH

(CD

U/V

DU

)

NSH

KCC KETTANEH

NESM

A (CO

KE

D

RU

MS

/FU

RN

AC

ES

)

DYW

IDA

G

(PR

OC

ES

S

AR

EA

S/LP

G/M

ER

OX

)

CCE

AMANA Buildings (Arch) SARCO

Underground

NSHPiping Shop Fab SIN

OPEC

(MH

C /D

HC

)

NESM

A (FCC

/ALK

Y)

MMG

SAM

SUN

G

(AR

OM

ATICS)

SUN

G C

HA

NG

(PA

RA

XILENE) NESMA

AMANA / L&T

Steel Structure / Equipment

ErectionNCC

A G Piping AIC

ElectricalJAL CARLO GAVAZZI CARLO

GAVAZZICARLO

GAVAZZIInstrumentation

Heavy Rigging MAMMOET MAMMOET ALEMAMMOET

MAMMOET SARENS MAMMOET

Haulage/ transport FAGIOLI FAGIOLI FAGIOLI FAGIOLI FAGIOLI FAGIOLI

TOTAL 4 SUBCs TOTAL 5 SUBCs TOTAL 6 SUBCs TOTAL 6 SUBCs TOTAL 6 SUBCs TOTAL 6 SUBCs

TOTAL 9 SUBCs

Page 19: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

SUBCONTRACTING MATRIX SHAYBAH LNGPK 1

Inlet & Gas Treatment Plant

PK 2NGL Recovery &

Utilities

PK 3Power Plant Pack 4a Gas Handling

GOSP 1 & 4Pack 4b gas Handling

GOSP 2 & 3

PK 5Residential &

Industrial

Civil WorksGUSAN

GUSANKAMCO

Mohammad Al Mojil Group (MMG)

Buildings (Arch)

Buildings (Precast const) Ranco & Zamil Ranco & Zamil

Underground GIWI TCC PTS Chelsea

Piping Shop Fab HajriSamsung Saudi

Arabia Fabrication Shop

ARCC not applicable

Steel Structure / Equipment

Erection GIWI TCC SUNGDO E&C JCC Sung Changnot applicable

A G Piping not applicable

ElectricalSAMYOUNG SEJONG MIDONG Carlo Gavazzi

not applicable

Instrumentation not applicable

Heavy Rigging Mammoet not applicable

Insulation RB Hilton Bin Zagr RB Hilton TBD not applicable

Painting RB Hilton Hajri RB Hilton TBD not applicable

Page 20: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

THIRD ANIMP CONSTRUCTION CONFERENCE & ECI AUTUMN FORUMMilan. Italy, October 12th, 2012

PUSHING THE LIMITS OF ENGINEERING CONSTRUCTION

WHAT FUTURE?

• KOREANS DIVERSIFYING INTO REGIONS AND FIELDS?• FEED EXPERTS?• WHAT ELSE?

Q & A SESSION

Page 21: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

© ABB Group February 1, 2012 | Slide 1

Faster on procurement (1/3)

MonthPack 2B

KOR Pack 3

KOR Pack 5B KOR

Pack 4 JAP&K

Pack 1 EU

Pack 2A EU

Pack 5A EU

10 31,0 25,0 40,0 26,0 31,0 33,0 25,0 15 53,0 52,0 54,0 49,0 53,0 55,0 52,5 20 72,0 70,0 72,0 67,0 72,0 67,0 62,0 25 92,0 93,0 96,0 84,0 92,0 77,0 82,0 30 98,5 96,2 100,0 98,5 98,5 89,0 100,0

Koreans are from 10 to 15% points faster than the European MCs

procurement centers

JERP (KSA) example:

Page 22: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

© ABB Group February 1, 2012 | Slide 2

Faster on procurement (2/3)

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

% o

f PR

OG

RES

S (S

ourc

e S

ATO

RP)

Project Month

JERP (KSA) ACTUAL PROCUREMENT CURVES

Pack 2B KOR Pack 3 KOR Pack 5B KOR Pack 4 JAP&K

Pack 1 EU Pack 2A EU Pack 5A

Page 23: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

© ABB Group February 1, 2012 | Slide 3

Therefore faster on site (3/3)

Pack 1 EUR

Pack 2A

48 55

65

74 81 83 85

Pack 2B KOR

93 93 99

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

17 18 19 20 21 22 23 24 25 26 27

% o

f Ton

s (S

ourc

e M

C'M

ater

ailM

anag

ers

Project Month

JERPPiping Cumulated site del.ry (tons)

Pack 1 EUR Pack 2A EUR Pack 2B KOR

-4

18

32 38

45

Pack 2B KOR61

72 77

81

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

17 18 19 20 21 22 23 24 25 26 27

% o

f ID

ia(S

ourc

e S

ATO

RP

)

Project Month

JERP Piping Cumulated Prefab (IDia)

Page 24: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45

% P

rogr

ess

Project Month

YERP EP&C&C Planned vs ActualPack # 3 (DAELIM)

ENG P ENG A PROC P PROC ACONSTR P CONSTR A COMM P

As of June’12

value: 0,95 BilEUR

Approx. 17 Mhours

Page 25: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

© ABB Group February 1, 2012 | Slide 1

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

% D

irect

vs

Peak

MA

NO

IWER

(sou

rce

SATO

RP)

Project month

JERP Manpower vs Peakby Packages

Pack 2B KOR Pack 3 KOR Pack 1 EUPack 2A EU Pack 5A EU Pack 5B KOR

Page 26: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

with the aid of:

Third ANIMP Construction Conference andECI Autumn Forum

Pushing the Limits of Engineering ConstructionLe sfide e i nuovi limiti della Costruzione

October 12th, 2012 – Milan, Italy9.30 am to 5.30 pm

Atahotel ExecutiveCristallo Room, Viale Don Luigi Sturzo, 45 – 20154 Milano

This ANIMP Construction Section and ECI event will showcase state of art techniques in theEngineering Construction Industry and the results of adopting cutting edge engineering andconstruction management tools. It will interest all stakeholders including owners, operators,constructors, designers and specialist contractors.

We are now seeing projects that would have been impossible only a few years ago and limitsare continually being challenged and stretched. Construction periods have been drasticallyreduced due to traditionally sequential operations running concurrently through innovativeprocedures such as prefabricating civil foundations and plant super-structures.Increasingly heavy prefabricated modules are being built in sophisticated yards, transportedby ship and/or by road and lifted into final position, while buildings are reaching heightsbeyond anything that could have been previously imagined.

Severe weather conditions in hostile environments are now overcome successfully throughinnovative engineering solutions and lateral thinking by construction specialists. In the pastdecommissioning was a matter of simple demolition, but it is now a highly complex operationrequiring sophisticated techniques, ever more regulatory compliance and highly detailedplanning sequences.

Finally, competition from the Far East is challenging companies to provide greater efficiencythrough exciting advances in technology, openness to new ideas and at the same timecapturing and utilising the experience gained from previous projects.

Topics relating to Heavy Engineering Plant and Production Facilities include:

• Criteria and parameters in modular design

• Sharing the benefits of lessons learned within a construction company

• 3D modeling as support for construction activit ies: next steps for

future development (presentation from the Task Force researching

best practice)

• Decommissioning - Planning and Organisation

• South-Korean company strategies for overseas construction

• Best Practice procedures in the transition from construction to

commissioning

Project Case Studies will be presented on:

• Tecnimont’s Propane Dehydrogenation Unit project in Tobolsk, Russia

• Saipem’s Husky Sunrise Oil Sand Project in Canada

• Dimensione Ingenierie’s Monte Bianco New Cable Project in

Italy

see pprogramme and other information on web site www.animp.it

Sticky Note
THE THEMES OF THIS CONFERENCE
Page 27: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

Third ANIMP Construction Conference andECI Autumn Forum

Pushing the Limits of Engineering ConstructionLe sfide e i nuovi limiti della Costruzione

October 12th, 2012 – Milan, Italy9.30 am to 5.30 pm

Atahotel ExecutiveCristallo Room, Viale Don Luigi Sturzo, 45 – 20154 Milano

08.45 - 09,30 am

09,30 am

11,00 - 11,15 am

12,45 - 02,00 pm

03,40 - 03,55 pm

04,25 - 05,20 pm

05,20 - 05,30 pm

Registration and welcome coffee

Welcome and IntroductionWelcome:- John Oliver, Chairman ECI- Nello Uccelletti, President ANIMPIntroduction:- Angelo Zucconi & Clive Winkler, Event Coordinators

Criteria and parameters in modular design- Paolo Cremonini, FAGIOLI

Sharing the benefits of lessons learned within aconstruction company- Jan Broekman, CB&I

Coffee - break

3D modelling as support for construction activities:next steps for future development- Massimiliano Del Rio, Task Force ANIMP-ECI

Decommissioning - planning and organisation- Jeremy Hunt, SELLAFIELD and Ivo Tripputi, SOGIN

South Korean company strategies for overseasconstruction- Antonio Coladarce, ABB

Lunch

Best practice procedures in the transition fromconstruction to commissioning- Deniz Metin Kaya, FOSTER WHEELER ITALIANA

Introduction to projects at the limits of engineeringconstruction- Angelo Zucconi & Clive Winkler, Event Coordinators

Propane Dehydrogenation Unit project in Tobolsk,Russia- Ferruccio Tata Nardini, TECNIMONT

Monte Bianco New Cableway Project in Italy- Marco Petrella, DIMENSIONE INGENIERIE

Coffee - break

Husky Sunrise Oil Sand Project in Canada- Giovanni Surian, SAIPEM

Q&A session with all speakers- Chairmen, Francesco Di Serio & James Bishop

Event summing up and closure of the Conference

PP RR OO GG RR AA MM MM EE

with the aid of:

Page 28: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

Third ANIMP Construction Conference andECI Autumn Forum

Pushing the Limits of Engineering ConstructionLe sfide e i nuovi limiti della Costruzione

October, Friday 12th 2012 – Milan, Italy9.30 am to 5.30 pm

Atahotel Executive, Cristallo Room, Viale Don Luigi Sturzo, 45 – 20154 Milano

Where we are and how to reach us:

REGISTRATION FORMATAHOTEL EXECUTIVE - VIALE DON LUIGI STURZO, 45 - 20154 MILANO

PLEASE SEND BY E-MAIL OR BY FAX with copy of bank transfer TO ORGANIZING SECRETARIAT: ANIMP SERVIZI SRL -Via Enrico Tazzoli, 6 – 20154 Milano

Tel.+39 -02 67100740 – Fax +39 02 67071785 e-mail: [email protected] or [email protected] COMPLETING BY HAND, PLEASE USE BLOCK CAPITALS

Please tick the relevant box and confirm payment by signing below : (price includes 21%VAT )

Recipient: ANIMP SERVIZI SRLVia Enrico Tazzoli, 6 - 20154 Milan ItalyVAT & FC Code 07843320156BANK: UNICREDITIBAN CODE: IT87Q0200801758000100408125SWIFT BIC CODE: UNCRITM1M67

Date

Signature

NAME SURNAME

COMPANY OR UNIVERSITY

ADDRESS

POSTAL/ZIP CODE CITY COUNTRY

e-mail PHONE FAX

VAT CODE OR FISCAL CODE

To reach the Atahotel Executive from Central Railway Station: Pick up the under-ground (MM2, Green line-towards Cadorna) up to "Porta Garibaldi" stop (it takes 5/8minutes to get there). The hotel is within 5 minutes walking distance from this stop.To reach the Atahotel Executive from Linate Airport: pick up the Bus n° 73 up to thefinal stop (Piazza San Babila) and then pick up the underground (Red Line-towardsCadorna) (one every 6 minutes) and stop at “Cadorna Station” (4th stop). Thenchange into the Green line and get off at "Porta Garibaldi" stop . The hotel is within5 minutes walking distance from this stop.To reach the Atahotel Executive from Malpensa Airport : pick up the “MalpensaExpress” leaving from the terminal every 30 minutes. Stop to "P.ta Garibaldi Station"( it takes 40 minutes to go there). The hotel is within 5 minutes walking distance fromthis station. To reach the Atahotel Executive from Orio al Serio/ Bergamo Airport : pick up the“Orio Shuttle” leaving from the terminal every 30 minutes up to the Bus terminal (nextto the Central Railway Station). Then pick up the underground (MM2, Green line-towards Cadorna) up to "Porta Garibaldi" stop (it takes 5/8 minutes to get there).The hotel is within 5 minutes walking distance from this stop. Further Information:Taxi from Linate Airport takes 30 minutes to get to Atahotel Executive.Taxi from Malpensa Airport takes 50 minutes to get to Atahotel Executive. Taxi from Orio al Serio Airport takes 50 minutes to get to Atahotel Executive.

� ANIMP & ECI MEMBERS € 145,20

� OTHERS (non Animp/Eci Members) € 242,00

Conditions of Payment1- Use this format for the registration only2- Regisration fee must be paid by bank transfer3- All payments must be done in Euro4- All banking charges must be paid by the payer5- Registration accepted only 100% payment6- Checks are not accepted7- Title of bank transfer must include participant’s name8- Only after receiving the payment, ANIMP SERVIZI SRL willissue and send the invoice to the payerConditions of change & cancellation1- In case of cancellation between September 15 up to September30, 2012 paid amount will be returned minus 50%. Money shall bereturned no later than 4 weeks after the end of the Congress2- No refund will be made for cancellation after October 1st, 20123- All notifications of cancellation must be in writing4- Name changes will be allowed free of charge until September11, 2012

HOTEL BOOKINGATAHOTEL EXECUTIVE: room reservation can be made through“Central Booking Office”, phone +39 06 69646964,e-mail: [email protected], marking as reference: “Convegno ANIMP 12 OTTOBRE 2012”

PRICE PER DAY B/B and 10% VAT:

DUS € 140 DP € 160

Page 29: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

© ABB Group February 1, 2012 | Slide 1

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51

% D

irect

vs

Peak

MA

NO

IWER

(sou

rce

SATO

RP)

Project month

JERP Manpower vs Peakby Packages

Pack 2B KOR Pack 3 KOR Pack 1 EUPack 2A EU Pack 5A EU Pack 5B KOR

Page 30: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

© ABB Group February 1, 2012 | Slide 1

Faster on procurement (1/3)

MonthPack 2B

KOR Pack 3

KOR Pack 5B KOR

Pack 4 JAP&K

Pack 1 EU

Pack 2A EU

Pack 5A EU

10 31,0 25,0 40,0 26,0 31,0 33,0 25,0 15 53,0 52,0 54,0 49,0 53,0 55,0 52,5 20 72,0 70,0 72,0 67,0 72,0 67,0 62,0 25 92,0 93,0 96,0 84,0 92,0 77,0 82,0 30 98,5 96,2 100,0 98,5 98,5 89,0 100,0

Koreans are from 10 to 15% points faster than the European MCs

procurement centers

JERP (KSA) example:

Page 31: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

© ABB Group February 1, 2012 | Slide 2

Faster on procurement (2/3)

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

% o

f PR

OG

RES

S (S

ourc

e S

ATO

RP)

Project Month

JERP (KSA) ACTUAL PROCUREMENT CURVES

Pack 2B KOR Pack 3 KOR Pack 5B KOR Pack 4 JAP&K

Pack 1 EU Pack 2A EU Pack 5A

Page 32: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

© ABB Group February 1, 2012 | Slide 3

Therefore faster on site (3/3)

Pack 1 EUR

Pack 2A

48 55

65

74 81 83 85

Pack 2B KOR

93 93 99

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

17 18 19 20 21 22 23 24 25 26 27

% o

f Ton

s (S

ourc

e M

C'M

ater

ailM

anag

ers

Project Month

JERPPiping Cumulated site del.ry (tons)

Pack 1 EUR Pack 2A EUR Pack 2B KOR

-4

18

32 38

45

Pack 2B KOR61

72 77

81

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

17 18 19 20 21 22 23 24 25 26 27

% o

f ID

ia(S

ourc

e S

ATO

RP

)

Project Month

JERP Piping Cumulated Prefab (IDia)

Page 33: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45

% P

rogr

ess

Project Month

YERP EP&C&C Planned vs ActualPack # 3 (DAELIM)

ENG P ENG A PROC P PROC ACONSTR P CONSTR A COMM P

As of June’12

value: 0,95 BilEUR

Approx. 17 Mhours

Page 34: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

with the aid of:

Third ANIMP Construction Conference andECI Autumn Forum

Pushing the Limits of Engineering ConstructionLe sfide e i nuovi limiti della Costruzione

October 12th, 2012 – Milan, Italy9.30 am to 5.30 pm

Atahotel ExecutiveCristallo Room, Viale Don Luigi Sturzo, 45 – 20154 Milano

This ANIMP Construction Section and ECI event will showcase state of art techniques in theEngineering Construction Industry and the results of adopting cutting edge engineering andconstruction management tools. It will interest all stakeholders including owners, operators,constructors, designers and specialist contractors.

We are now seeing projects that would have been impossible only a few years ago and limitsare continually being challenged and stretched. Construction periods have been drasticallyreduced due to traditionally sequential operations running concurrently through innovativeprocedures such as prefabricating civil foundations and plant super-structures.Increasingly heavy prefabricated modules are being built in sophisticated yards, transportedby ship and/or by road and lifted into final position, while buildings are reaching heightsbeyond anything that could have been previously imagined.

Severe weather conditions in hostile environments are now overcome successfully throughinnovative engineering solutions and lateral thinking by construction specialists. In the pastdecommissioning was a matter of simple demolition, but it is now a highly complex operationrequiring sophisticated techniques, ever more regulatory compliance and highly detailedplanning sequences.

Finally, competition from the Far East is challenging companies to provide greater efficiencythrough exciting advances in technology, openness to new ideas and at the same timecapturing and utilising the experience gained from previous projects.

Topics relating to Heavy Engineering Plant and Production Facilities include:

• Criteria and parameters in modular design

• Sharing the benefits of lessons learned within a construction company

• 3D modeling as support for construction activit ies: next steps for

future development (presentation from the Task Force researching

best practice)

• Decommissioning - Planning and Organisation

• South-Korean company strategies for overseas construction

• Best Practice procedures in the transition from construction to

commissioning

Project Case Studies will be presented on:

• Tecnimont’s Propane Dehydrogenation Unit project in Tobolsk, Russia

• Saipem’s Husky Sunrise Oil Sand Project in Canada

• Dimensione Ingenierie’s Monte Bianco New Cable Project in

Italy

see pprogramme and other information on web site www.animp.it

Page 35: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

Third ANIMP Construction Conference andECI Autumn Forum

Pushing the Limits of Engineering ConstructionLe sfide e i nuovi limiti della Costruzione

October 12th, 2012 – Milan, Italy9.30 am to 5.30 pm

Atahotel ExecutiveCristallo Room, Viale Don Luigi Sturzo, 45 – 20154 Milano

08.45 - 09,30 am

09,30 am

11,00 - 11,15 am

12,45 - 02,00 pm

03,40 - 03,55 pm

04,25 - 05,20 pm

05,20 - 05,30 pm

Registration and welcome coffee

Welcome and IntroductionWelcome:- John Oliver, Chairman ECI- Nello Uccelletti, President ANIMPIntroduction:- Angelo Zucconi & Clive Winkler, Event Coordinators

Criteria and parameters in modular design- Paolo Cremonini, FAGIOLI

Sharing the benefits of lessons learned within aconstruction company- Jan Broekman, CB&I

Coffee - break

3D modelling as support for construction activities:next steps for future development- Massimiliano Del Rio, Task Force ANIMP-ECI

Decommissioning - planning and organisation- Jeremy Hunt, SELLAFIELD and Ivo Tripputi, SOGIN

South Korean company strategies for overseasconstruction- Antonio Coladarce, ABB

Lunch

Best practice procedures in the transition fromconstruction to commissioning- Deniz Metin Kaya, FOSTER WHEELER ITALIANA

Introduction to projects at the limits of engineeringconstruction- Angelo Zucconi & Clive Winkler, Event Coordinators

Propane Dehydrogenation Unit project in Tobolsk,Russia- Ferruccio Tata Nardini, TECNIMONT

Monte Bianco New Cableway Project in Italy- Marco Petrella, DIMENSIONE INGENIERIE

Coffee - break

Husky Sunrise Oil Sand Project in Canada- Giovanni Surian, SAIPEM

Q&A session with all speakers- Chairmen, Francesco Di Serio & James Bishop

Event summing up and closure of the Conference

PP RR OO GG RR AA MM MM EE

with the aid of:

Page 36: Conference ANIMP & ECI Oct 2012 korean companies strategies for overseas construction

Third ANIMP Construction Conference andECI Autumn Forum

Pushing the Limits of Engineering ConstructionLe sfide e i nuovi limiti della Costruzione

October, Friday 12th 2012 – Milan, Italy9.30 am to 5.30 pm

Atahotel Executive, Cristallo Room, Viale Don Luigi Sturzo, 45 – 20154 Milano

Where we are and how to reach us:

REGISTRATION FORMATAHOTEL EXECUTIVE - VIALE DON LUIGI STURZO, 45 - 20154 MILANO

PLEASE SEND BY E-MAIL OR BY FAX with copy of bank transfer TO ORGANIZING SECRETARIAT: ANIMP SERVIZI SRL -Via Enrico Tazzoli, 6 – 20154 Milano

Tel.+39 -02 67100740 – Fax +39 02 67071785 e-mail: [email protected] or [email protected] COMPLETING BY HAND, PLEASE USE BLOCK CAPITALS

Please tick the relevant box and confirm payment by signing below : (price includes 21%VAT )

Recipient: ANIMP SERVIZI SRLVia Enrico Tazzoli, 6 - 20154 Milan ItalyVAT & FC Code 07843320156BANK: UNICREDITIBAN CODE: IT87Q0200801758000100408125SWIFT BIC CODE: UNCRITM1M67

Date

Signature

NAME SURNAME

COMPANY OR UNIVERSITY

ADDRESS

POSTAL/ZIP CODE CITY COUNTRY

e-mail PHONE FAX

VAT CODE OR FISCAL CODE

To reach the Atahotel Executive from Central Railway Station: Pick up the under-ground (MM2, Green line-towards Cadorna) up to "Porta Garibaldi" stop (it takes 5/8minutes to get there). The hotel is within 5 minutes walking distance from this stop.To reach the Atahotel Executive from Linate Airport: pick up the Bus n° 73 up to thefinal stop (Piazza San Babila) and then pick up the underground (Red Line-towardsCadorna) (one every 6 minutes) and stop at “Cadorna Station” (4th stop). Thenchange into the Green line and get off at "Porta Garibaldi" stop . The hotel is within5 minutes walking distance from this stop.To reach the Atahotel Executive from Malpensa Airport : pick up the “MalpensaExpress” leaving from the terminal every 30 minutes. Stop to "P.ta Garibaldi Station"( it takes 40 minutes to go there). The hotel is within 5 minutes walking distance fromthis station. To reach the Atahotel Executive from Orio al Serio/ Bergamo Airport : pick up the“Orio Shuttle” leaving from the terminal every 30 minutes up to the Bus terminal (nextto the Central Railway Station). Then pick up the underground (MM2, Green line-towards Cadorna) up to "Porta Garibaldi" stop (it takes 5/8 minutes to get there).The hotel is within 5 minutes walking distance from this stop. Further Information:Taxi from Linate Airport takes 30 minutes to get to Atahotel Executive.Taxi from Malpensa Airport takes 50 minutes to get to Atahotel Executive. Taxi from Orio al Serio Airport takes 50 minutes to get to Atahotel Executive.

� ANIMP & ECI MEMBERS € 145,20

� OTHERS (non Animp/Eci Members) € 242,00

Conditions of Payment1- Use this format for the registration only2- Regisration fee must be paid by bank transfer3- All payments must be done in Euro4- All banking charges must be paid by the payer5- Registration accepted only 100% payment6- Checks are not accepted7- Title of bank transfer must include participant’s name8- Only after receiving the payment, ANIMP SERVIZI SRL willissue and send the invoice to the payerConditions of change & cancellation1- In case of cancellation between September 15 up to September30, 2012 paid amount will be returned minus 50%. Money shall bereturned no later than 4 weeks after the end of the Congress2- No refund will be made for cancellation after October 1st, 20123- All notifications of cancellation must be in writing4- Name changes will be allowed free of charge until September11, 2012

HOTEL BOOKINGATAHOTEL EXECUTIVE: room reservation can be made through“Central Booking Office”, phone +39 06 69646964,e-mail: [email protected], marking as reference: “Convegno ANIMP 12 OTTOBRE 2012”

PRICE PER DAY B/B and 10% VAT:

DUS € 140 DP € 160