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General maintenance services and field managed modifications contract

Delivering essential maintenance services to onshore and offshore oil and gas operations

Esso Australia
Contract Value
$500M AUD (UGL KAEFER Joint Venture)
Project Duration
Commenced: 2010
Estimated Completion
Service Lines/Product Description
Longford and Long Island Point, Victoria & Bass Straight, Tasman Sea
Project Overview

The discovery of oil and gas in Bass Strait in the 1960s led to significant changes to Australia’s industry and economy. Over the past 40 years, billions of dollars have been invested in infrastructure to produce the oil and gas which ordinary Australians rely upon every day to power industry, fuel vehicles, heat homes and manufacture products.

Leading energy provider, Esso Australia (Esso), currently has a number offshore platforms and subsea installations in Bass Strait, which feed a network of 600km of underwater pipelines and keep the oil and gas flowing, 24 hours a day.

In 2010, UGL in a 50:50 joint venture with KAEFER, was awarded a seven year General Maintenance Services and Field Managed Modifications contract with Esso Australia. The integrated services contract covers a number of Esso’s operating facility locations in Victoria including 21 offshore oil and gas processing platforms, 2 onshore plants, a marine terminal and onshore pipelines.

The multi-disciplinary maintenance and minor project services delivered include mechanical, electrical and instrumentation, scaffolding, painting, insulation, civil, procurement and planning services.

The Challenge

Over the next 25 years, energy demand in the Asia Pacific region is expected to rise by about 65 per cent. Helping to meet this demand is not only critical to Australia’s economic growth, but is essential for the livelihood of people through the region. It ensures that economies can grow and nations can prosper.

With its large network of offshore platforms and onshore facilities, employing a specialist in oil and gas maintenance services would enable Esso to focus on its core business of providing energy safely, reliably and with minimal environmental impact.

Additionally, Esso needed a long term maintenance provider that could introduce a unit rate model for its operations, deliver improved safety & quality and move to a more highly-skilled permanent workforce within a brownfields environment.

The Solution

Esso’s offshore and onshore operations must function reliably around the clock. Delivering service excellence throughout the entire lifecycle of Esso’s operational asset’s, UGL’s capabilities cover all aspects of their upstream and downstream operations.

Esso has obtained the benefits of employing UGL’s Operational Toolkit that links continuous improvement and performance measurement to assist site based people in managing their business. The use of empirical data derived from this system ensures energy is focused where it is most required and validates the value of improvements implemented.

UGL has worked closely with Esso over time to proactively increase working knowledge of their onshore and offshore operations. This has enabled an increased understanding of Esso’s ongoing reliability processes which has presented opportunities for UGL to provide value-added services.

Alignment of UGL’s safety systems with Esso’s systems, has also been an important process in fueling step-change. This has delivered benefits to operational safety and has also created consistent standards, practices and management processes across sites delivering greater efficiencies.

Key Outcomes and Benefits

Esso has benefited from UGL’s depth of experience in oil and gas which includes, maintenance and brownfields project expertise, proven performance in delivering shutdowns of greater than 150,000 man hours, a strong local pool of experienced personnel established through previous and current projects and flexible EBAs with effective rosters and working Union relationships to drive productivity changes.

Key benefits and outcomes include:

  • Consistency and alignment in safety systems, processes and communication has contributed to building a strong and effective safety culture on site which has delivered zero Lost Time Injury’s in first 24 months
  • More than 300 personnel were mobilised swiftly over a 12 week period upon contract startup with a significant permanent workforce now established
  • Lower costs, reduced operational risk and improved reliability, safety and availability of client assets in leveraging UGL’s best practice maintenance capability
  • An accountable business partner who can tailor a maintenance solution that optimises operational performance and reduces risk for our clients
  • A single point of accountability in optimising the performance of assets to meet their whole of life potential
  • The client is able to make informed maintenance decisions with the aim of maximising asset availability and whole-of-life asset value
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