nsight

A publication of Intergraph Process, Power & Marine Vol. 7 Issue 1 Winter 2006

Challenging
waters
Europe, Middle East and Africa face
need for more plant capacity, skilled engineers

Murray & Roberts Linde Engineering OMV Aktiengesellschaft

Innovative strategies Snhvit is a fairy Walks the golden
boost productivity tale success steps of King Midas
 nsight
Vol. 7 Issue 1
A publication of Intergraph
Process, Power &Marine

Page 4
Winter 2006 EMEA
Outlook
Contents
Perspective
Problem Solver for Challenging Waters of Europe, Middle East and Africa 2
ViewPoint
Doing Business in EMEA: An Industry Perspective 4 Page 6
Better Data
Technology at Work
Management
Innovative Strategies Boost Productivity 6
Walking the Golden Steps of King Midas 10
Linde Engineering Pulls It All Together at Snhvit 16
Mega-Projects in the Middle East 18
Business Spotlight
European Shipbuilding: Shaped by Technology 8
Page 8
The 2005 Golden Valve Award Winners 12
New Wave
Great Minds Through Time of Change
Navantia Advances Shipbuilding in Spain 20
Industry Newsbytes 22
Events and Announcements 24
Did You Know?
SmartPlant 3D Offers Tremendous Productivity Benefits 26 Page 16
Concurrent
Industry Outlook Engineering
Maximizing Innovation 28 Success

Page 18
Middle East
Growth

Insight is published by Intergraph Process, Power & Marine

Editor Patrick Holcomb
Managing Editor Laurie Harris
Contributing Editors Matthew Bantock
Ian Hoffman
Jana Miller
Laurie P. Smith
Graphic Designer Joey Russell
Intergraph Corporation, Huntsville, Alabama USA 35824 1-256-730-3707
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 Letter from the Editor

Helping overcome
productivity challenges
The race for increasing productivity is endless no matter where you are.
Europes rich history and mature markets pose many challenges social,
political and economic as it adapts to globalization. In addition, as Eastern
European countries, such as Poland and the Czech Republic, develop their econo-
mies, competitive dynamics are greatly affected. Like many companies around the
globe, European firms are reassessing their productivity to
compete in the global economy.

Europe also faces the challenges of an aging workforce and a shortage of

skilled engineering. Like the United States, Europes experienced engineers
are set to retire in the next five years and their intellectual capital with them.

Throughout its 35-year history, Intergraph has been helping customers around
the world to improve productivity in placement and operation of CAPEX facilities.
Today, our SmartPlant Enterprise is helping customers change the way they do
business by offering solutions that make them more productive and enable them
to capture and reuse their intellectual capital across the entire enterprise.

As you will read in this issue of Insight, Paul Hodges, of Shaw Stone & Webster
in the United Kingdom, discusses global projects and the outlook for the
industry (p. 4).

This issue of Insight highlights the successes of several customers:

Murray & Roberts, an engineering firm based in South Africa, has
Produce

successfully transformed its project handover to 100 percent digital with SmartPlant
Foundation (p. 6). German-based Linde Engineering is one of
several contractors that implemented a concurrent engineering infrastructure
with Intergraph tools to deliver Snhvit on time (p. 16). OMV Aktiengesellschaft,
in Austria, saw a paradigm shift in its ability to execute plant modifications
using up-to-date P&ID data from SmartPlant P&ID (p. 10).

Europe, the Middle East and Africa are poised to meet the challenges of its
changing business climates and a global economy. And Intergraph will continue
to be there to help.

Patrick Holcomb
Insight Editor
Executive Vice President, Global Business
Development & Marketing,
Intergraph Process, Power & Marine
Perspective
Problem Solver for Challenging Waters of
Europe, Middle East and Africa
Intergraphs
concentration on
the industrys
business drivers
has worked well
EMEAs latest challenge is the looming engineering skills crisis
By Matthew Bantock
Insight Contributor
Philippe Marceau serves as executive
vice president for the Europe, Middle
East & Africa (EMEA) business unit for
Intergraph Process, Power & Marine.
He is responsible for the business
operations management of field
operations in the EMEA region,
including sales and marketing,
support, consulting services and
business development. Based in Paris,
Marceau has more than two decades
of industry experience with EPCs
and owner/operators.
Intergraph has been doing business
for more than a quarter of a century
in the EMEA region. Customers in
the area cover a wide range of EPCs
and O/Os, including Bayer, ENI, Fluor
Daniel, Foster Wheeler, Linde, Tecnicas
Reunidas, Technip, Sasol, Saudi Aramco,
Shell, Snamprogetti and Vetco Aibel.
EMEA is currently generating more
than 40 percent of Intergraphs Process,
Power & Marine divisional turnover.
Insight recently spoke with Marceau
about his thoughts on the state of
2
Intergraphs EMEA business unit,
the industries it serves and the challenges
the area faces.
Insight: Your EMEA business has been
a consistent performer. How have you
achieved this?
PM: Despite Intergraphs long track
record in EMEA and its blue-chip
customer base, we are never compla-
cent. Maintaining growth, particularly in
Western Europes more mature markets,
is always a challenge. Our strategy has
been to work as closely as possible with
our customers to help them achieve a
competitive edge, exploit new opportuni-
ties and work more productively. Our
business is centered on their business:
in that sense, their problems are our
problems. For that reason, certainly in
EMEA, Intergraph sells solutions, not
products it is what the market wants.
Insight: In your opinion, what
is the biggest problem for owner/
operators today?
PM: Maximizing profitability is
probably the main issue. I believe O/Os
have reached a turning point. Industry
sources tell us that global energy demands
will increase by 50 percent over the next
25 years, and that about 80 percent of that
increase will come from the developing
world. To address this, O/Os need to get
more from existing assets and develop
new assets faster than their competitors.
For instance, new refineries are needed
to ensure adequate supply and avoid
market volatility.
Insight: If processing capacity
is the weak link in the chain, will owner/
operators invest to increase it?
How can Intergraph help its EMEA
customers if they do?
PM: I believe its not so much if
but when. Lets look at the business
case. First, we know that oil demand is
increasing in line with GDP and popula-
tion growth. This will make it easier to
justify investment in new exploration
projects and greater processing capacity.
Secondly, even the approximately 22
(upper US$20s) to approximately 27
(lower US$30s) per barrel price range
forecasted by some analysts would be high
enough to justify new capital expenditure.
Ultimately, engineering will drive the
performance of any new plant in which
owners do invest and thats where

Intergraph comes in. Our engineer-
ing enterprise solutions reduce capital
production costs, accelerate asset start-up
and improve plant performance. We help
owner/operators to increase their return
on capital employed, which is always
important for them.
Insight: How have market conditions
affected EPCs across EMEA?
PM: I recently attended an industry
gathering in Europe with 20 of the top
EPCs and O/Os. Each of them said that
the increase in larger, multi-billion dollar
projects is causing a shortage of high-level
engineering talent just when they need
it most. This problem is affecting the
entire industry owners and EPCs alike.
Insight: How has the problem
come about?
PM: The industry is struggling to replace
an aging workforce. The average age of
engineers is now 48 rising to 50-plus
in the US, where half the oil industry
workforce is eligible to retire in five years
and the situation in EMEA is hardly
any better. This is not a new issue, but
for some players it is now becoming acute.
Insight: What about developing
countries, which are generally seen as
a new source of engineering talent?
PM: Take a look at recent EPC invest-
ment in high-value centers based in India
and other offshore markets where labor
costs are low. These workers typically
perform lower level, detailed engineering.
Plus, their knowledge is generally quite
narrow more task- than project-focused,
if you will.
Insight: If, as you say, your role is to
solve problems for your customers doing
business in EMEA, can you help solve this
problem of finding engineering talent? Or
is competing against the high-value
centers simply too big a problem to solve?
PM: Intergraph can certainly help
its customers operating in EMEA and
other regions with what we call digital
engineering and information infra-
structure solutions, also known as the
SmartPlant Enterprise.
This technology empowers our custom-
ers both EPCs and O/Os to securely
distribute and share engineering knowl-
edge and best practices across borders and
project teams, including outside contrac-
tors.
It also enables our customers to protect
and re-use their engineering intellec-
tual property. For example, earlier plant
designs can be stored electronically
and then re-used for future projects.
When engineering knowledge is
eroding, as has been happening in todays
industry, its value soars. Our solutions
maximize and protect it. They also make
engineers more productive, which is
crucial when there are fewer of them
to go around.
Insight: Lets discuss how you do
business in EMEA. In your opinion,
is there is a united Europe?
PM: No or at least, not yet. European
markets are different. For example, the
UK has a strong oil and gas industry
presence, as does Scandinavia. Germany
is strong in chemicals and pharmaceuti-
cals. Ireland has good pharmaceutical and
silicon chip manufacturing industries.
The Netherlands and Belgium are
known for their chemicals, food and
beverage manufacturing. France, Italy
and Spain have petrochemical industry
strengths, in addition to others. Of course,
many European nations are now subject
to the same legislations and use the same
currency, but the similarities end there.
Insight: What is the state of Europe
today, from your own business perspective?
PM: We are seeing a significant
growth with new customers in new
markets. All of our customers want to
automate existing processes, integrate
systems to enable better and faster
business decisions and to collaborate
in a global environment.
Among the smaller European econo-
mies, the Netherlands and Portugal are
a little sluggish, although many others
are enjoying steady growth. Even though
European GDP is stagnating, our custom-
ers are growing.
Eastern Europe is still expanding
quickly. For instance, the Kazakhstan
economy was forecast to grow by around
8 percent in 2005, and Belarus by
10 percent.
Perspective
Insight: How do you approach Europe
when planning for your business?
PM: We typically plan by market, looking
for growth as well as size. Intergraph has
been doing business in Europe for about
25 years, so we have a good knowledge of
the region. For us, it is more important to
look at the way our customers work.
Larger EPCs are global, of course,
but at the same time, many prefer to have
a local-language relationship. If I am an
EPC executive in a global organization
but I am based in Germany, my primary
relationship is likely to be with a German
or German-speaking Intergraph executive.
But for some owner/operators who also
operate globally, it is different. As long
as we provide the services and solutions
they need, it doesnt matter where their
relationship with Intergraph is managed.
I believe we pay more attention to
major account management than our
competitors do. We make sure to assign
senior Intergraph people to work with
larger customers, focusing on the longer-
term relationship, often at a high level.
Insight: And the Middle East
and Africa?
PM: This is a significant chunk of the
planet with a combined population
of some 300 million people and a GDP
of approximately 494 billion (US$600
billion). Our strategy has begun to
aggressively address the needs of our
customers in the region.
This is effective in the Middle East,
where we are the leader in our field in
oil and gas. We continue to concen-
trate our resources on that industry,
working with a local partner, and most
of the owner/operators now specify that
engineering firms use Intergraph
solutions for their projects.
In Africa, we focus our resources
on the nation of South Africa, where
Intergraph customers are primarily
concentrated in the mining industry.
However, the number of customers from
other industries is growing and offers good
opportunities. This focused strategy has
been successful for us.
(Continued on page 27)
3
Events and Announcements
The right technology drives value
Learn how at
Intergraph 2006
International
Users Conference
By Laurie Harris
Insight Managing Editor
In its inaugural year, Intergraph 2006
International Users Conference will bring
together all of its customers and partners
from around the globe and demonstrate
how Intergraph technology brings value
to your business.
Join senior executives, business manag-
ers, decision-makers and other users to
explore industry-specific challenges and
imperatives for success in todays dynamic
marketplace. In addition to hands-on
training and networking, attendees will
have the opportunity to discuss and evalu-
ate industry insights
and best practices to provide the greatest
value from Intergraphs full range of
technologies.
For owner/operators and EPCs,
find out the latest on how Intergraphs
SmartPlant Enterprise offers you real
business benefits:
Improve project execution and
operational efficiency
24
Maximize your competitive advantage
Increase the value of your information
assets
Hear the latest update on our best-in-class
solutions, including sessions on:
3D modeling and visualization
Engineering and schematics
Materials management and project
controls
Information management
Marine
Find out how each step in the SmartPlant
Enterprise takes you closer to a fully
integrated engineering enterprise
something no other provider can offer.
Why attend?
Network with your peers to exchange
ideas and learn from their expertise
Discover cutting-edge technologies
and solutions through the latest tools,
resources and hands-on training
Learn how to get more out of your
existing Intergraph products
Influence product direction
Leave the conference with realistic
concepts to shape actions and analyses
in business plans and strategies
Registration
Save by registering early. Full conference
registration entitles the attendee to all
technical sessions, workshops, keynotes
and plenary sessions, symposia, site
tours, exhibits, conference-sponsored
meals and social functions. Register
using the convenient online form at www.
intergraph2006.com regardless
of payment method used.
Early-bird (through February 15) $795
Pre-registration
(February 16 through May 19) $895
After May 19 and on-site $995
Intergraph 2006 will be held at Disneys
Coronado Springs Resort & Convention
Center, just a 45-minute drive from
Orlando International Airport and in the
heart of the Walt Disney World Resort.
Located on a 15-acre lake, the resort is
a recreational paradise with a marina;
state-of-the-art fitness center, sauna and
spa services; a refreshing feature pool
 Events and Announcements

and Jacuzzi; and five courtyard pools.

A guest room block for Intergraph ABB Automation World
2006 has been reserved at Disneys May 9 11 Houston, Texas
Coronado Springs Resort from Friday,
June 9, through Friday, June 16, at ISPE
the group rate of $134 per night single June 5 8 Arlington, Virginia
or double occupancy, plus applicable
Intergraph 2006
sales and resort taxes in effect at the
June 12 15 Orlando, Florida
time of the conference.
MRO World
Visit www.intergraph2006.com for the
July 23 26 Orlando, Florida
latest information on Intergraph 2006. INTERGRAPH
SNAME 2006
2006 Industry Events October 19 21 Houston, Texas INTERNATIONAL
Western Canada Oil Sands Summit ISPE USERS
January 17 18 Calgary, Alberta November 5 9 Orlando, Florida CONFERENCE
daratechPLANT 2006 Visit ppm.intergraph.com/events for the
January 23 25 Houston, Texas latest updates on industry events. June 12 15
INTERPHEX Puerto Rico Disneys Coronado
February 16 17 San Juan, Puerto Rico
Laurie Harris is managing editor of Springs Resort
Insight and marketing program manager
SPAR 2006
for Intergraph Process, Power & Marine,
Orlando, Florida
March 27 28 Houston, Texas
based in Huntsville, Alabama USA. www.intergraph2006.com
Sea Japan
April 5 7 Tokyo, Japan
25
ViewPoint
Doing Business in EMEA:
An Industry Perspective
By Paul Hodges
Shaw Stone & Webster
Shaw Stone & Webster, a subsidiary of
The Shaw Group Inc., is a process and
power contracting business. We have
two operating areas handling projects
on a regional basis for both process and
power: North America, which delivers
all the projects in the Americas and
Asia, and the UK office of which I
am managing director, which delivers
projects primarily in Europe, Africa,
the Middle East and Russia.
Large projects, large companies
Our current largest project involves
engineering a 1.3 million tons per year
grassroots ethylene plant for SHARQ
Eastern Petrochemical Company in
Saudi Arabia. We have just finished a
job in China another ethylene plant
project which was worth about 370
million (US$450 million).
Shaw Stone & Webster primarily works
for major integrated oil and petrochemical
companies. We have completed a number
of projects for the former BP Chemicals,
Shell, OMV and Borealis
4
in Europe, SABIC in Saudi Arabia and
QAPCO in Qatar a wide range of
companies. Most of our clients are larger
companies, because the projects that we
deal with tend to be in bulk petrochemi-
cal and refining operations.
Worksharing essential for success
Worksharing now plays a key role in
project delivery. The company has set
up engineering technology centers of
excellence around the world, whose
responsibilities include quality assurance
and quality control of execution.
For example, when we design an
ethylene plant, we might perform the
design in the UK, but we also collect
considerable input from our office in
Houston, where our center of excellence
for ethylene technology is located. It is
very convenient to gather this valuable
information online rather than moving
people around the world.
At the other end of the workshare
spectrum, we operate a joint venture
company in India, which typically
completes about 25 percent of our
detailed engineering labor hours on
a full-scope project. All of our piping,
structural steel and civil systems are
modeled using Intergraph software,
and many of them use software design
packages that interface to Intergraphs.
We are also now moving ahead with
Intergraphs SmartPlant 3D plant
design software.
Worksharing using those tools has
become a critical part of our business. It is
an essential if we want to stay competitive,
maintain productivity and ensure access
to resources. In short, it is a cornerstone
of our business.
Current regional activity
The Middle East is currently a strong
market for us. Saudi Arabia, Qatar,
Kuwait, Oman and the United Arab
Emirates all have active petrochemical
projects. We see a lot of activity in Algeria,
new petrochemical ventures in Egypt,
and, of course, Libya is starting to open
up again, with sanctions under review
and being relaxed.
Shaws business in Europe mostly
consists of revamps and modernizations.
There are some new build projects, but
they are usually cases of expanding and
adding to existing facilities, as opposed

to the major grassroots projects in the
Middle East.
Russia is very tantalizing. Most of the
project money is still going into its oil
and gas projects, but certainly in the mid-
term I can see a number of petrochemical
opportunities opening up in that region.
Importance of mitigating risk
Risk management is a big issue for our
industry. As projects get larger, certainly
in the Middle East, the typical model
is lump-sum turnkey.
Billion-dollar lump-sum turnkey
contracts are becoming more common,
and to structure such a contract you
have to look hard at the risk profile.
In other words, you need a good risk
management strategy.
This may involve negotiating different
contract terms. It may mean bringing
in partners with particular expertise in
certain areas, so that each contractor helps
to mitigate the risk.
Shrinking pool of knowledge
Looking ahead, a shortage of skilled
resources in both engineering and
construction is something that our
industry has to watch very carefully.
We need to take a longer-term view.
Todays market is quite volatile, so
attracting, training and retaining staff is
vital. Having access to a skilled workforce
for the geographical areas in which we
operate can be a particular challenge.
For example, in the Middle East, the
shortage of experienced construction
resources could become critical, and
takes careful planning to mitigate.
Historically, design technology has
tended to make engineering labor hours
more efficient, but there has not been
a dramatic time reduction, because the
more sophisticated the tools become,
the more data people want to see.
Design technology reduces
rework, spreads workload
Certainly in terms of efficiency, design
technology tools have helped engineering.
But more importantly, they have reduced
rework levels.
The accuracy of engineering has
improved to the extent that it enables
much more efficient use of construction
resources. Less rework and fewer errors in
the field are very important when you are
working to tight schedules, under onerous
contract conditions.
Being able to spread the workload by
moving packages around the world using
good communication and worksharing
systems also smooths out the variations
in workload that tend to arise in the
engineering construction business.
Data capture and re-use saves time
Data capture is another technology
benefit today. Much better reference
data is available from previous projects.
However, data re-use has to be
managed carefully. Almost every
project is different the detailed client
requirements in terms of engineering
specifications are almost never the same.
I cannot remember the last time we
said that we were going to design and
build a Shaw Stone & Webster plant
entirely to a Shaw Stone & Webster speci-
fication. Each project has to incorporate
the clients specific requirements.
So detail is not often directly transferable
from one project to another. However,
in the areas of proposal preparation
and as-built data access, technology
has helped enormously.
O/Os changing expectations
Ten to fifteen years ago, most of the big
owner/operators retained very large inter-
nal engineering departments. We used
to refer to this as man-to-man marking.
The routine tended to be hands-on
client management by the owner.
The EPC provided the technology
and project management expertise, but
the owner/operator was very involved
in the day-to-day decision making.
Today, most of the large companies
have dramatically reduced their internal
project and engineering resources and
prefer to package up the work. Once
Shaw Stone & Webster has been awarded
the job, we then have direct control of the
budget, with often demanding schedules
and the requirement to deliver a cradle-to-
grave service. We provide the technology
for the engineering and the procurement;
we provide the construction; we start the
unit up and finally we hand it over.
ViewPoint
Non-recourse project financing
Another current commercial trend is non-
recourse project financing. Ten to fifteen
years ago, it was unusual to see major
chemical and petrochemical projects
being financed on a non-recourse basis,
where the project is the only collateral
for the loan. Today the lenders and the
commercial institutions wield much more
influence, not only in the commercial
conditions of the contract, but also in
the responsibilities of the contractor.
Industry outlook
Looking ahead, we see a large wave
of petrochemical and refining projects
coming through worldwide, and I think
that trend will continue through this
current round of start-ups, from 2008
through to 2012. That period of growth
will probably be followed by a slowdown
in the market, while the industry comes
to grips with the new capacity and
concentrates on stabilizing operations.
Refining has suffered from a lack of
investment worldwide for a long time. We
are just starting to see some new investment
in capacity, though it is lagging slightly
behind the petrochemical wave.
Our other business is power. In the
UK, clearly something has to be done
to sustain and improve the national
infrastructure for generating, transmitting
and distributing power. There is a nuclear
legacy that has to be managed, decom-
missioned and decontaminated. There is
also a great deal of speculation about non-
nuclear and sustainable energy sources.
Our industry has always been cyclical,
and long-term we expect that pattern to
continue in all of the business that we
operate. But certainly in the short- to
medium-term, this is probably the most
active engineering and contracting market
that I have seen in 30 years. I believe this
trend will continue, certainly for the next
four to five years.
Paul Hodges is managing director of Shaw
Stone & Websters United Kingdom office.
www.shawgrp.com
5
Technology at Work

Mega-Projects in the Middle East

Region enjoys
vast natural
resources
and rapidly
growing
economy

By Talal Jazayerli, P.E.
Insight Contributor
This is the first of two articles discuss-
ing Intergraphs activities in the Middle
East region. In this introductory article,
a general overview of the geography and
economy is presented. The second article
in the next edition of Insight will offer
an in-depth look at the activities of
Intergraph customers in the area.
The Middle East represents a huge
growing market for the process industry.
It is home to 66 percent of the worlds
crude reserve, and represents 30 percent
of global crude production. The region
also holds 35 to 40 percent of the global
natural gas reserve.
Atheeb Intergraph Saudi Company
(AISC) is Intergraphs sole distributor
in the region.
Our customers are very interested
in having the best products available
to execute their high-profile projects,
and they consistently choose Intergraph
solutions, said Muhammed Al Aswad,
regional manager for AISC Process,
Power & Marine.
We have recently helped several
clients in the region implementing the
SmartPlant Enterprise suite of products,
including SmartPlant Foundation,
SmartPlant P&ID, SmartPlant
Instrumentation, SmartPlant Electrical
and SmartPlant 3D. This has contrib-
uted to their successfully achieving greater
design productivity and efficiency.
The four nations representing the
highest growth rate and greatest number
of new planned and executed projects
are the Kingdom of Saudi Arabia,
Kuwait, Qatar and United Arab Emirates.
Following is a brief synopsis of their
economies, projects and industry outlook.
Kingdom of Saudi Arabia
Saudi Arabia is about 1.9 million square
kilometers in size and enjoys an oil-based
Large, growing economies

Kingdom of Saudi Arabia Kuwait Qatar United Arab Emirates

Gross Domestic 255.3 billion 38.5 billion 16.0 billion 52.4 billion
Product (GDP) (US$310.2 billion) (US$48.0 billion) (US$19.5 billion) (US$63.7 billion)

GDP real growth 5.0% 6.8% 8.7% 5.7%

rate

2004 estimates according to CIA World Factbook

18

economy. Saudi Arabia possesses
one-quarter of the worlds proven petro-
leum reserves, ranks as the largest exporter
of petroleum, and plays a leading role
in the Organization of the Petroleum
Exporting Countries (OPEC). The
petroleum sector accounts for roughly 75
percent of budget revenues, 45 percent of
the Gross Domestic Product (GDP), and
90 percent of export earnings. Roughly 5.5
million foreign workers play an important
role in the Saudi economy, including the oil
and service sectors.
New projects are always being planned
and scheduled. Several multi-billion dollar
plants were announced this year alone.
Arab News reported that Mr. Abdul Rahman
Abdul Kareem, Saudi Arabias deputy
minister of petroleum and mineral affairs
for company affairs, called upon Saudi and
foreign companies to forge economic alliances
in order to carry out new oil projects worth
approximately 107 billion (US$130 billion)
while addressing the oil and gas session of
the Saudi Mega Projects 2005 conference.
Saudi Arabias petrochemical giant
Saudi Arabia Basic Industries Corporation
(SABIC) plans to increase its ethylene
glycol production from 43 million tons to
64 million tons within the next three years
to become the worlds largest producer.
SABICs present and future investment
as part of its plan to increase production
will cross 16.5 billion (US$20 billion)
in three years and 57.6 billion (US$70
billion) in the next 15 years, said Mr. Fahd
Al-Sheaibi, vice president at SABIC, as
reported by Arab News. SABIC reported
first half 2005 net profits of approximately
2.1 billion (US$2.6 billion), registering
an increase of 84 percent compared to
the profits in the same period last year.
Many other upgrade projects carry large
price tags. Jubail-based Eastern Petrochemical
Company (Sharq) is spending approximately
1.9 billion (US$2.3 billion) to expand its
olefins complex, with scheduled project
completion for 2008.
The approximately 6.6 billion
(US$8 billion) joint venture of Saudi
Aramco and Japans Sumitomo Chemical
Company is upgrading the kingdoms
largest refinery at Rabigh and turning it
into a world-scale integrated refining
and petrochemicals complex.
AISC has several offices in the
Kingdom of Saudi Arabia Riyadh,
Jeddah and Al-Khobar in the eastern
province supporting Intergraph clients
located across the entire country.
Kuwait
Kuwait is a much smaller country in
comparison with the kingdom of Saudi
Arabia, but it is a rich country with proven
crude oil reserves of about 96 billion barrels
10 percent of world reserves. Petroleum
accounts for nearly half of the countrys
GDP, 95 percent of export revenues, and
80 percent of government income. Kuwait
continues its discussions with foreign oil
companies to develop fields in the north-
ern part of the country.
Major petrochemical and gas projects
worth billions of dollars are planned. For
example, state refinery operator Kuwait
National Petroleum Company has launched
its estimated 4.1 billion (US$5 billion)
grassroots refinery project. The refinery
is expected to come on stream in 2010.
The 615,000-barrel-a-day refinery will be
by far the largest ever built in the region
and one of the largest in the world.
AISC maintains a relationship with
a reseller in the state of Kuwait. This
reseller receives direct support from
AISC and Intergraph.
subsidiaries in exploration and production,
Qatar
Oil and natural gas revenues enable
Qatar to have one of the highest per capita
incomes in the world. Multi-billion dollar
projects in gas handling and conversion
are planned in Qatar. In recent years,
Qatar has consistently posted trade surpluses
largely because of high oil prices and
increased natural gas exports, becoming
one of the worlds fastest growing and
highest per-capita income countries.
Oil and gas account for more than
55 percent of the countrys GDP, roughly
85 percent of export earnings, and 70
percent of government revenues. Proven
oil reserves of 16 billion barrels should
ensure continued output at current levels
for several decades to come.
Qatars proven reserves of natural
gas exceed 14 trillion cubic meters,
more than 9.5 percent of the world total
and third largest in the world. Long-term
goals feature the development of offshore
natural gas reserves.
Technology at Work
Qatar Gas and Qatar Petroleum, Qatars
largest companies, in addition to new
emerging joint venture companies such
as Oryx GTL, are aggressively enhancing
existing production refineries and build-
ing multi-billion dollar new facilities.
The AISC office in the capital city of
Doha is looking to expand its presence
there in the near future to support the
growing number of Intergraph customers.
United Arab Emirates
The United Arab Emirates (UAE)
has an open economy with a high per
capita income and a sizable annual trade
surplus. The UAE is home to 9.5 percent
of the worlds crude, and represents 12
percent of Middle East refining capabilities.
The nations wealth is based on oil and
gas output which account for about 30
percent of the countrys GDP.
Since the discovery of oil in the
UAE more than 30 years ago, the UAE
propelled to become a modern state with
a high standard of living. At present levels
of production, oil and gas reserves should
last for more than 100 years.
Abu Dhabi National Oil Company is a
state-owned company operating in all areas
of the oil and gas industry. ADNOC has
broadened its activities through different
support services to the oil and gas industry,
oil refining and gas processing, chemicals
and petrochemicals, maritime transporta-
tion, and refined products and distribution.
In the oil and gas processing arena, ADNOC
has several affiliates, including ADGAS,
GASCO and TAKREER.
Abu Dhabi Gas Liquefaction Limited
(ADGAS) was created to turn gas,
extracted from Abu Dhabis offshore field
crude oil, into a new source of marketable
energy. The fact that gases are no longer
used as fuel for oil field flares has impacted
positively on the environment. Tokyo
Electric Power Company (TEPCO)
imports ADGAS plants production
through an LNG train, the largest of
its kind in the world.
Abu Dhabi Gas Industries Ltd.
(GASCO) is the operating company
in Abu Dhabi responsible for process-
ing associate and non-associate gas
(Continued on page 27)
19
Technology at Work
Innovative Strategies Boost Productivity
Murray & Roberts
manages their
engineering data
more efficiently
with SmartPlant
Foundation
By Pat Thomson
Insight Contributor
We knew that we needed an engineer-
ing data warehouse, explains Hannes
Marais, corporate engineering manager at
Johannesburg-based Murray & Roberts.
It would be a place where we could
capture and control all our engineer-
ing data, and that would also become a
knowledge base for repeat business and
repeat engineering processes. We had
an in-house system, but realized that it
would take too much time and money
to update.
The company looked for a commer-
cial solution from the open market
that would fit its business processes.
Following a period of research, Murray &
Roberts chose Intergraphs SmartPlant
Foundation engineering information
and workflow management software
and services provided by the distributor
Intergraph Systems Southern Africa
(Pty) Ltd.
We found that while there was no
worldwide shortage of tools for data
6
warehousing, the Intergraph option was
by far superior and offered a lot more than
just data storage, said Richard Genade,
CAD manager at Murray & Roberts.
It gave us a ready-made interface to
engineering data design tools, such
as Intergraphs SmartPlant P&ID,
SmartPlant Instrumentation and
SmartPlant Electrical, as well as
non-Intergraph tools. The ability to
plug these tools in and out was attractive.
Implementation is a team effort
This core requirement was just one
part of the picture. For the solution to
function effectively as the companys
central engineering data hub, it
would have to be able to interface at
an intelligent level with document
management, materials management
and procurement and ultimately,
non-engineering business systems.
Murray & Roberts and Intergraph
worked together to find the best
implementation plan for SmartPlant
Foundation. We used our functional
requirements specification as the
guideline for our minimum requirements,
but beyond that we began with an open
mind and an open vision, recalls Jacques
Struwig, SmartPlant Foundation
systems administrator.
Struwig and his colleagues are quick
to compliment Intergraph Systems South
Africa for their partnership during the
SmartPlant Foundation implementation.
They also stress the support of Murray &
Roberts senior management, which they
say has been essential to the success of
the project.
The development process was broken
into a series of phases with subsequent
site acceptance tests:
Project determination and budget signoff
Functional specification
Development of a class library structure
These were followed by engineering
datasheet development, document control
and workflows.
Murray & Roberts SmartPlant
Foundation user community of about 200
members includes both engineers and
document controllers. We prefer to
think of it as one project team, Struwig

explains. We like SmartPlant Foundation
because it is an integrated system that
does not really distinguish between
the different disciplines it is really all
one structure. We think of SmartPlant
Foundation as a project tool that everyone
on the project should be using.
How have the users responded? It is
a big challenge, not technically, because
it is user-friendly, but in terms of new
working practices, says Genade.
Acceptance will not happen overnight,
but it is a goal that we need to strive for.
The challenge is not unique to Murray
& Roberts the global workforce is aging,
and in South Africa many engineers
are now 50-plus. There is a tendency to
blame the system.
Owning the data,
becoming enabled
Because a system like SmartPlant
Foundation is developed around your
business processes and procedures, it
forces the user to comply with those rules
and regulations, Marais says. But at
the same time, it also gives the user full
ownership of the data. Once people begin
to experience that, they also begin to see
how much more they can get out of the
system how it can work well for them
as an enabler rather than a regulator.
For example, they understand how they
benefit from better traceability and
revision control.
Using an exchange tool, Murray &
Roberts now feeds all the P&ID data
into SmartPlant Foundations Microsoft
Windows environment, allowing the
project team to pull interactive equip-
ment, line and valve lists into an Excel
spreadsheet. Group members agree
that gaining fully interactive datasheets
has been a great engineering advantage
different disciplines having access to
the same data at the same time boosts
accuracy and productivity. Engineering
data integrity is also assured.
Murray & Roberts latest step has been
to implement Intergraphs MARIAN
material management system, interfacing
it to SmartPlant Foundation and feeding
equipment data into MARIAN to enable
the procurement process. The company
is currently an Intergraph PDS user
but plans to migrate to SmartPlant 3D,
Intergraphs next-generation, data-centric
and rule-driven solution for streamlining
engineering design processes. Meanwhile,
SmartPlant Foundation/ERP workflows
have been prepared in anticipation
of Murray & Roberts new PeopleSoft
system, shortly due to go live.
Ending the paper nightmare
Project handover has been transformed
by the new engineering environment,
We like SmartPlant Foundation
because it is an integrated system
that does not really
distinguish between the different
disciplines it is really all one
structure. We think of SmartPlant
Foundation as a project tool
that everyone on the project
should be using.
which is 100 percent digital. Performing
the final handover has always been a
paper nightmare, says Genade, but
with SmartPlant Foundation, the time it
takes to gather the data has been consid-
erably reduced. Genades experience
is supported by industry-wide research,
which shows that a digital engineering
handover can cut costs by as much as
60 percent.
The response from owner/operators
has been very positive. As Marais explains,
Three of our clients are now considering
switching to SmartPlant Foundation after
receiving the projects we have completed
for them. They can see the value.
Pat Thomson is the Power, Process &
Marine divisional manager for Intergraph
Systems Southern Africa (Pty) Ltd., an
Intergraph distributor.
www.intergraph.co.za
Technology at Work
About SmartPlant Foundation
SmartPlant Foundation ensures
an open, independent data storage
system to protect plant information for
the life of the plant. It addresses all of
the design, build and operation require-
ments of a facility throughout the entire
plant life cycle. SmartPlant Foundation
builds a comprehensive electronic library
about a plant. It encompasses a plants
design, modifications, upgrades and
refurbishment, effectively managing
the evolving plant configuration from
front-end engineering design to plant
decommissioning.
The end result is a plant information
asset which helps support real-time
business decisions that, in turn, reduce
cost, improve quality and reliability,
shorten project schedules and plant
shutdowns, and address safety and
environmental issues throughout the
plant life cycle.
ppm.intergraph.com/smartplant/
foundation
About Murray & Roberts
With a strong presence in southern
Africa and a focus on the construc-
tion economies of the developing
world, Murray & Roberts is a group of
engineering, design and construction
companies serving primarily the mining
and metals, building and infrastructure
manufacturing and steel industries
in South Africa and more than 50
countries around the world. With
a history spanning 100 years,
Murray & Roberts is headquartered
in Johannesburg and employs more
than 15,000 people in South and
southern Africa, the Middle East
and the United Kingdom.
www.murrob.com
7
 Technology at Work
Linde Engineering Pulls It All
Together at Snhvit
Snow White
is a fairy tale
success project
where concur-
rent engineering
dreams really
do come true
By Barbara Drges
Insight Contributor
Despite the success in developing
alternative energy sources, the burning
of fossil fuels still accounts for a large
part of energy consumption. Whether
for coal, natural gas or petroleum, the
easily accessible deposits have been
exhausted for quite some time. Oil and
gas producers must drill ever deeper to
reach the highly sought-after organic
hydrocarbon compounds.
In the middle of the 19th century, drill-
ings to a depth of less than 50 meters often
yielded success. However, todays produc-
ers must generally drill a few kilometers
down into the ground in
order to discover natural gas or crude oil.
Depths of more than 6,000 meters have
been reported and only a small fraction
of explorations carried out eventually find
worthwhile deposits. A rule of thumb is
that only one in eight oil test drillings are
actually successful. If one is successful,
then the laborious production process
can begin.
16
Snow White brings pioneer spirit
One of the latest natural gas projects is
Statoils Snhvit (Snow White) project.
Beginning this year, a newly developed
field is expected to yield about 5.67 billion
cubic meters of liquefied natural gas
(LNG) for export. According to current
estimates, production might last for
some 30 years.
However, the natural gas fields
Snhvit, Albatross and Askeladd covered
by the Snow White project are below
the seabed of the Barents Sea, some 150
kilometers northwest of Hammerfest,
Norway. The technical term for this
approach to petroleum and natural gas
production is offshore production.
It is considered to be as expensive as it
is technically demanding. Even though
up to 400 offshore plants are already
located in the North Sea alone, this
industry is characterized by innovation.
For example, Statoil created for the
Snow White project Europes first remote
offshore development. A total of four wells,
as well as many kilometers of pipelines,
are monitored and operated from a
control station on the island of Melkya.
The processing facilities, which are also
located on Melkya, are used to liquefy
the natural gas before it is shipped to
Europe and the US in special
container vessels.
Linde Engineering plans gas
liquefying plant
Since early 2002, many engineering
firms have participated in the 6.5 billion
(approximately US$7.86 billion) project.
One of those firms is Linde Engineering,
which was awarded the contract for the
gas liquefying plant. A division of Linde
AG, Linde Engineering has annual sales
of 1.58 billion (approximately US$1.91
billion) and a staff of more than 4,200.
Headquartered in Wiesbaden, Germany,
the group specializes in the planning and
construction of plants for air fractionation,
natural gas processing and olefin and
hydrogen production.
In order to meet the deadline for
engineering this large plant, which
includes more than 15,000 loops and

a demanding process control system,
Linde Engineering joined forces with
more than 30 engineering partners and
suppliers. These subcontractors use a
variety of IT systems and tools for planning
and operation. This meant that special
attention had to be paid to suitable IT
integration concepts for the project.
Concurrent engineering
for efficiency
For large-scale projects, concurrent
engineering offers synchronized devel-
opment across companies and sites. In
coping with complexity, suitable IT
infrastructure and sophisticated updating
management are critical.
Concurrent engineering yields
significant benefits of enhanced overall
efficiency, which can only occur when
a continuous workflow across disciplines
and partners is achieved. Without control
over the exchange of the extensive project
data and documents, there is no way to
organize this magnitude of collaboration.
Experienced project managers know that
in this context, data update management
is the key.
In theory, this is quite simple. As early
as the 1980s, approaches were discussed
which defined the optimal sequence for
various workflow activities. Each stage
was characterized by specific activities,
methods and techniques, and by the
required tools and results, labeled as
milestones. In this ideal model, project,
quality and document management are
considered as the integrating functions
across phases.
In practice, however, it is a quite
different matter. Although the various
phases are theoretically separated in terms
of time, they actually overlap. Therefore,
not all milestones of one phase have to
be completed and accepted before the
next phase can be started. However, this
approach does require that subsequent
activities are based on released milestones.
In concurrent engineering, this
requirement is abandoned as well.
The next phase can start even before
the milestones of the previous phase
have been released. With this approach,
planning time is drastically reduced, yet
some redundant work may take place.
Also, it must be possible to revert
to a previous phase. This working
method, however, can only work
with a high-performance data update
management system.
With the data update management
system, changes, errors and problems,
as well as suggestions for improvement,
are logged, managed and submitted in
the form of updating requests. The update
itself is performed according to internal
procedures or customer specifications.
Interdisciplinary perspective
Another major aspect is the
interdisciplinary perspective. Usually,
updates not only impact one discipline,
but other disciplines as well. Suppliers
and contractors must also be involved
in updating management. Therefore,
the IT infrastructure must go beyond
the company itself.
In addition to the 30 sub-suppliers
various tools, Linde Engineering itself
uses a number of different planning
systems. Intergraphs PDS is one of
the core systems for process engineering.
In the Snow White project, PDS 2D
is used to prepare P&IDs for revision
and substitution.
Basic planning and instrumentation for
process control and electrical engineering
in the gas liquefying plant were performed
with Sigraph CAE by TCS. Documentum
is used for project document management.
Instrumentation data integration
Statoil expects planning results
to be in the Intergraph SmartPlant
Instrumentation format. Therefore, the
Sigraph data is imported to SmartPlant
Instrumentation. Linde has successfully
used this market-leading software since
2003. SmartPlant Instrumentation offers
data-based representations of the areas
of measurement, which provides a
variety of benefits:
No need for graphic dialog knowledge
Highly standardized loops
Support for batch processing, which
clearly enhances effectiveness
Some contractors carry out their planning
using SmartPlant Instrumentation. In
order to obtain a holistic data model
from the large number of results, two
Technology at Work
methods are used. Various SmartPlant
Instrumentation databases are merged,
or the team works directly on the
SmartPlant Instrumentation master
database at Linde Engineering.
In the future, this integration work
could be supported by Intergraphs
SmartPlant Enterprise solution.
With its open architecture, SmartPlant
Enterprise enables convenient integration
of third party software, including internal
applications and business system applica-
tions. In addition, SmartPlant Enterprise
provides service-oriented concepts for
implementation of optimal industrial
processes.
A member of the SmartPlant
Enterprise, SmartPlant Foundation
offers efficient information management
for the process, power and offshore indus-
try worldwide. The SmartPlant Enterprise
permits effective sharing of information
and controlled communication and data
exchange between tailored development
tools. Furthermore, it provides a platform
which integrates information flow between
applications. Data only needs to be
entered once, and can be reused again
and again.
Also, SmartPlant Enterprise helps
all companies involved with their data
update management and minimizes
the extent of redundant work and data
by informing them of upcoming or
suggested activities and by highlighting
current changes.
Statoil has already used a similar Plant
Information Management system based
on SmartPlant Foundation. By effectively
optimizing the inventory of plant infor-
mation, significant time and cost savings
can be achieved throughout the plant life
cycle of the Snow White project.
Barbara Drges is a European
marketing manager for Intergraph
based in Munich, Germany.
www.statoil.com/snohvit
www.linde-process-engineering.com
17
 Technology at Work
Walking the Golden Steps of King Midas
OMV implements
SmartPlant P&ID
as part of
MIDAS project
for focused
deployment of
IT solutions
By Barbara Drges
Insight Contributor
The business of refinery operators is
characterized by constantly increasing
costs and price-sensitive customers. In
order to take some of the pressure off
projects, a focused deployment of IT
solutions is becoming more important
than ever.
The operation, maintenance and
extension of refineries represent some of
the most complex tasks in the chemical
industry. In many areas, computer-aided
preparation of piping and instrumenta-
tion diagrams (P&IDs) and intelligent
documentation can help make this
work more efficient. This strategy applies
to new construction and extensions as well
as to preventive maintenance,
and it also provides an excellent basis
for safety analysis.
Change is a constant
The Austrian company OMV
Aktiengesellschaft is Central Europes
leading oil and gas group. OMV is active
10
in the refinery and marketing sector
in 13 Central European countries and
in exploration and production in 17
countries on five continents, with
2004 sales reaching EUR 9.88 billion
(approximately US$11.8 billion).
OMV has other refineries and stakes
in refineries, but the Schwechat refinery
near Vienna is the heart of the group.
This high-tech plant is one of Europes
largest and most modern inland refiner-
ies, processing about nine million tons of
crude oil to highest-grade oil products and
petrochemical base materials each year.
About 60 percent of all oil-based products
used in Austria originate in Schwechat.
At first glance, the numerous tanks,
distillation towers, crackers, countless
pipelines and other special equipment of
the huge refinery may appear to be static.
However, constant plant and construction
modifications are in fact part of the
day-to-day routine in Schwechat, and
the demands on technical documenta-
tion are quite complex. For example, the
Technical Documentation division
reports that their various P&IDs are
accessed more than 1,000 times a month.
The Refining & Petrochemicals business
unit is made up of 20 staff members
whose tasks include:
Administration and provision of
technical plant documentation
Systems integration
Networking of documentation systems
to form a comprehensive data and
document management system
Definition of specifications for the
delivery of documentation
Enhancement of technical standards
for plant documentation
A variety of projects have already trans-
formed historic paper drawings into an
electronic archive, and at the same time
made the documents more intelligent.
Ing. Albert Meyer, Senior Expert in
the Technical Documentation division,
considers P&IDs to be central, key
documents which must be provided
in the best possible format.
Data-driven solution
Early on, OMV used various CAD
systems such as AutoCAD or ICEM
to prepare P&IDs. Although this resulted
in some increase in efficiency, up-to-date

P&IDs were still not immediately avail-
able for use in plant modifications. This
led to a time-consuming and sometimes
nerve-racking search for the latest version
of documents as in the days of drawing
boards, compasses and rulers.
But when they began using
Intergraphs SmartPlant P&ID, Meyer
and his staff saw a paradigm shift that,
in his words, best supported our goals.
SmartPlant P&ID is a data-driven, rule-
based design tool which differs radically
from traditional graphic P&ID systems
because it is based on the underlying
data rather than on single P&IDs.
This data model exists only once and
is used differently in the various phases
of the process. The benefit is that all
information on the P&ID pattern is
saved in a single data model, allowing
great flexibility either to set up reports
or to filter elements for a specific system.
The new environment also removes
any problems with the maintenance
of redundant data and the related need
to retrieve detailed information from
multiple sources.
With its fast updating and modifica-
tion function, SmartPlant P&ID helps to
ensure that P&IDs are kept up-to-date
to reflect the current plant status. Plus,
design rules that are embedded in the
system give high data precision. The
software supports projects on operating
plants as well as the execution of approved
changes various versions of P&IDs
may be maintained, allowing the user to
compare configurations or to restore
previous versions. Another strength of
SmartPlant P&ID is the automatic check
based on defined rules, which ensures
that modifications do not compromise
the design standards of the project.
Turning data into gold
In light of all these benefits, one can
understand when Meyer says, I am
interested in migrating all of our P&IDs
to SmartPlant P&ID. This work is
considered part of the MIDAS (Modular
Integrated Data Access System) project
that OMV has set up to centralize and
network all of their operations data and
enhance its quality by 2010.
Since access to knowledge is worth
its weight in gold, Meyers vision is that
each staff member should have easy
access to P&IDs via the intranet and a
widely installed electronic document
management system. Documentation
should not be a secret, but an available
resource to each OMV employee,
he explains.
The MIDAS project is a big step
towards knowledge management. It is
no coincidence that the project acronym
has the same name as the mythical King
Midas of Phrygia who, around 800 B.C.,
is said to have turned everything he
touched into gold.
Efficiency benefits
The potential increases in efficiency
that can be achieved using SmartPlant
Documentation should not be a
secret, but an available resource
to each OMV employee.
P&ID can easily be seen when looking
at current construction projects in
Schwechat. Since 2003, OMV has
invested 200 million (approximately
US$234 million) into expanding their
ethylene plant. This is their highest single
investment since the late 1970s. The
expansions purpose is to strengthen the
added value in the OMV petrochemical
division, and at the same time
increase capacity.
Linde Engineering of Munich
provided engineering support for the
plant expansion, with the plant going
back into operation in Q3 2005.
Schwechat can now produce 500,000
tons of ethylene and about 400,000 tons
of propylene each year for use as primary
products in plastic production. The
project required the preparation and
regular use of 161 P&IDs, 45 process
flow charts and one block flow chart.
SmartPlant P&ID also provided real
benefits in OMVs new construction of
a 50 million (approximately US$59.3
million) desulphurization reactor for the
HDS-2 plant for diesel production. This
recently completed project necessitated
Technology at Work
major planning work involving the use
of 35 P&IDs, ten process flow charts
and two block flow charts. By handling
the project in accordance with the
latest project management principles,
the expansion was completed in only
19 months.
OMV commissioned a new hydrogen
plant to produce sulphur-free fuel in
2003. The plant provides the hydrogen
needed to remove the sulphur contained
in the fuel. For this building project,
the engineers produced 45 P&IDs, seven
process flow charts as well as one block
flow chart.
Collaboration benefits
The decision to use Intergraphs
SmartPlant P&ID enhances the
efficiency of OMVs internal work
processes. It also optimizes collaboration
with project contractors and engineering
partners, because they use Intergraph
products as well.
Intergraph is the software provider of
choice for plant layout engineers occupy-
ing the highest positions in the market,
said Meyer. Many engineering firms use
Intergraph so why shouldn't we go with
the trend?
Barbara Drges is a European marketing
manager for Intergraph based in
Munich, Germany.
www.omv.com
11
Business Spotlight
European Shipbuilding: Shaped by Technology
Market will soon experience a new wave of change
By Marzio Pierazzuoli
Insight Contributor
The European shipbuilding industry is
a growing and vital market. Measured
in traditional shipping terms of
Compensated Gross Tons (CGT),
Europe has about a 15 percent share
of worldwide commercial shipbuilding
new orders which in 2004 were 70
percent higher than in 2003. If measured
in dollar revenues, Europe actually has a
30 percent share of the worldwide market.
Europe constructs more sophisti-
cated vessels with higher value, such as
cruise ships, which are on average ten
times more costly and sophisticated than
tankers. Europe is the world leader in
this niche market and also holds a strong
position in the equally sophisticated
naval market.
To continue to benefit from this
positive trend, the European shipbuilding
industry needs to increase its efficiency
within its current major constraints:
one-of-a-kind production, high labor
costs and high cost of space.
8
Another key dynamic is production
versus manpower. During the last 20
years, production in the European
shipbuilding industry has increased by
more than 40 percent, while manpower
has shrunk by more than 35 percent.
This trend is almost entirely technology-
driven. Since the mid-1980s, European
shipbuilders have been taking on
computer-aided design (CAD) systems.
Todays CAD technology is almost
universal and often dated. Twenty years
is a long time in information technology.
The challenge for Europe comes from
the new competition in Asia, especially
China. For Europes shipbuilders to
respond effectively to that challenge,
they must make the very most of their
resources.
This means that the past improvements
in efficiency are not enough: a step-change
is needed.
Just as it was 20 years ago, technology
is once again the key to a new period
of change for European shipbuilding.
Entering the digital age will be the
industrys most radical shift in two
decades, and the companies that embrace
this change early will almost certainly
enjoy a competitive advantage.
New technology wave
The next generation of emerging
shipbuilding technology, based on
data-centric and rule-driven software
solutions, fully supports and facilitates
the revision of working processes.
It streamlines shipbuilding design,
preserves existing data and makes it
re-usable for future projects vital
for European shipbuilders needing
to improve their productivity and
cost-competitiveness within
current constraints.
This is much more than simple
CAD. The technology has the capability
to support flexible ship design, production
and life cycle management within a
single integrated environment. It offers
shipbuilders better decision support for
global design and production ultimately
making their yards more competitive.
The new technology wave bursts through
the barrier imposed by traditional design

technology. Rather than simply delivering
design (as with CAD), it focuses on deliv-
ering the best design, more productively
and within shorter project schedules.
This better, faster, cheaper design
route is good news for a European
industry under pressure to compete,
but with a skill set that is arguably the
worlds most sophisticated. This means
it is best placed to realize the full potential
of this new wave.
The future, here and now, is a truly
multidisciplinary environment in which
all designs are fully visible to all parties.
Design tasks are made simpler and faster
for the user, and manual rework and
checking are eliminated.
Importantly for Europes more
collaborative, multi-party and joint
venture-oriented industry, this next-
generation technology empowers ship
designers, shipyards, subcontractors
and suppliers, authorities and others
to manage and execute projects across
company borders, cutting costs and
shortening project schedules.
In the new IT environment, drawings
and reports can be generated automati-
cally, reducing the cost of design and
ensuring accurate, up-to-date documenta-
tion. Beyond that, new and existing design
knowledge can now be saved and re-used
in the future, preserving corporate
knowledge in the face of a shrinking,
aging workforce.
There are core, new-wave technology
characteristics that help to streamline
and compress the entire design process,
reducing project schedules. For example,
design rules increase data quality,
stimulate the use of standard solutions,
ensure design integrity and make
possible new levels of design and
production automation. Also, hull and
outfitting interference checking ensures
consistent change management and early
problem resolution.
Advanced component and detailing
catalogs in digital form can be used to
pre-configure manufacturing equip-
ment characteristics and choose shop
fabrication lines for hull/outfitting. The
automated drawing generation also
lowers the cost of design and ensures
the documents delivery as planned. The
Business Spotlight
technologys automation of
routine tasks
such as the detailing of structural
plates and profiles and weld
details saves time and money.
Industry cooperation
In a recent paper, my colleague
Michael A. Polini, who is also
a member of Global Research
and Development Corporation
(GRAD), a consortium of
world-class shipbuilding
companies, identified six
strategic issues facing
the industry.
He concluded that:
1. The trend in shipbuilding
is towards lower cost relative
to volume.
2. Quality vis--vis any
service requirement is
now non-negotiable.
3. Workforce expertise
both design and production
is diminishing.
4. Environmental issues
will impact shipyard
producers, owners and operators. practice and work process improvements
5. The availability of and ability as the underlying requirements for
to use technology will be a new technology.
significant competitive differentiator. The strength of a combined consor-
6. Competition will be fierce tium voice has been used to influence
and based on price, availability technology providers, and enabled the
and quality. joint selection of preferred partners.
Beyond that, it has also enabled the
He observed that one way for shipbuilding
formation of provider-consortium
enterprises to deal with these issues was to
partnerships that reduce the risk for
formulate a vision or business model that
both parties. Importantly for the wider
could be used to guide the organization.
industry, GRAD has agreed to make
Indeed, that is the approach that has been
the technology and other results of
taken by Intergraph and GRAD. Their
its initiative commercially available
vision has driven process re-engineering
to ensure their long-term success for
at the GRAD member shipyards, directly
a promising future.
affecting the development of software
technology at Intergraph and influencing
the plans and schedules of all the
Marzio Pierazzuoli is senior vice president
parties involved.
for the shipbuilding industry at Intergraph
GRAD has enabled the mapping of
Process, Power & Marine. He is based in
emerging new technologies in comput-
Milan, Italy.
ing tools, communications, collaborative
efforts, design tools and working practices. ppm.intergraph.com/marine
It has provided a unique environment
in which competitors can cooperate at
pre-competition levels to define best
9
 Did You Know?
SmartPlant 3D Offers Tremendous
Productivity Benefits
EPCs Can Gain Intelligent, Integrated Plant Design
By John Sanins
Insight Contributor
EPC companies face increasing
challenges to support globally dispersed,
concurrently engineered projects. The
extended project enterprise includes
customers, plant O/Os, fellow EPCs
and their suppliers. Managing the value
chain and associated changes to work
practices to support the extended project
enterprise is key to extending your
competitive advantage.
These challenges are not only focused
on best practice engineering activities to
support the overall plant life cycle. Better
integration, communication, and collabo-
ration at the project and data levels with
other suppliers, vendors and fellow EPCs
are major keys to your success.
As the leading supplier of 3D
plant design software spanning the
last two decades, Intergraph designed
SmartPlant Enterprise to deliver ever
greater efficiency to the industry through
increased automation within engineer-
ing disciplines, combined with greater
integration between disciplines. As a
26
result, SmartPlant Enterprise is based
on a modular architecture to allow
clients to take implementation in
a step-wise fashion.
A member of Intergraphs SmartPlant
Enterprise software family, SmartPlant
3D today offers significant benefits at
the enterprise, project, discipline and
end-user levels. It is now helping to
realign
the way EPCs approach and engineer new
capital projects in the future.
Better design thanks to better
software architecture
In practical terms, SmartPlant 3D offers
designers a significantly better way to
design plants by providing an advanced
and consistent plant design environment
based on a data-centric, rule-driven archi-
tecture. By integrating key engineering
disciplines, the resulting environment
shatters the restrictions of traditional
plant design software, resulting in
increased design productivity.
Intergraph has architected and
developed SmartPlant 3D to address the
constraints imposed by existing technical,
software, data management, functional
and integration deficiencies by enabling
an optimized, integrated design environ-
ment used to define and manage the 3D
plant model.
Real return on investment
Intergraphs SmartPlant environment
strives to maximize your return on invest-
ment, while protecting your existing
investments around infrastructure,
training and organizational processes.
This helps support changes in the way
the global plant design industry manages
plant assets through the complete life
cycle. SmartPlant 3D is helping drive
and shape this change and as a result,
helping to increase competitive
advantage to your organization.
Save time and
increase productivity
SmartPlant 3D can help you achieve
20 to 35 percent time savings in key
plant design areas as compared to older
plant design software. In addition, when
integrated into the SmartPlant Enterprise,
this productivity percentage is magnified.

SmartPlant 3D provides time savings
between 50 to 90 percent when making
3D design modifications in comparison
with older plant design software.
The process of integrating plant data
developed between other engineering
disciplines offers tangible project-related
productivity benefits, including:
SmartPlant Layout, based on
SmartPlant 3D, reduces remodeling
between conceptual design and
detail design by 20 percent when
compared to existing 3D layout or
traditional approaches.
Using SmartPlant technologies,
the time taken to undertake P&ID
consistency checking between the 2D
schematic model and 3D digital plant
model can be reduced by more than
90 percent.
Designs can be archived, retrieved
and re-used from project to project to
jump-start similar projects.
Legacy data can be effectively brought
into SmartPlant 3D.
John Sanins serves as technical director
at Intergraph Process, Power & Marine.
He is based in Houston, Texas USA.
Take advantage of
integration benefits
SmartPlant 3D has been designed
for productivity in both modeling and
inter-discipline integration:
Boost productivity and substantially
reduce software learning curves with
a familiar, easy-to-use 3D design and
modeling environment.
Retain and in many cases increase
engineering and corporate know-
ledge, boosting overall data quality
and integrity thanks to design rules
and relationships between SmartPlant
plant items.
Save money by moving toward
a truly integrated engineering enter-
prise through solutions offered by
SmartPlant Alliance Members who
are integrating into this environment.
Perspective Technology at Work
Problem Solver for Challenging Mega-Projects in the Middle East
Waters of Europe, Middle East (Continued from page 1 9 )
and Africa
(Continued from page 3 ) Abu Dhabi Gas Industries Ltd. (GASCO)
is the operating company in Abu Dhabi
Insight: What are your greatest responsible for processing associate
opportunities in EMEA?
and non-associate gas from onshore oil
PM: Besides a strong growth and presence production. It began as a joint venture
in our traditional markets, Europes
with ownership shared between ADNOC,
shipbuilding industry is facing a real
TOTALFINA ELF, Shell Abu Dhabi
challenge when it comes to competi-
and PARTEX. It was later integrated with
tiveness. Improving time to market and
GASCO, which led to its position as one
productivity has not been easy. Our
of the largest gas processing companies in
new-generation solution IntelliShip
the world and one of the biggest industrial
is ideally positioned to tackle these
projects in the UAE.
problems and set the technology
Abu Dhabi Oil Refining Company
standard for the industry.
(TAKREER) operates in a variety of
Eastern Europe is already very signifi-
areas, including refining crude oil, salt,
cant for our business. Its 25-plus countries
chlorine and petroleum condensates,
have a combined gross domestic product
sulphur treatment and the mixing of
larger than that of the US. Intergraph
petroleum products.
enjoys a very high penetration in the
AISC operates two offices in the UAE
East European power market almost 100
Dubai and Abu Dhabi. Abu Dhabi
percent in many countries, where most of
is the largest of the seven United Arab
the big players are our customers.
Emirates, with rich onshore & offshore oil
In addition, Eastern Europe is develop-
fields. Intergraph products are used by all
ing rapidly and has a wealth of oil, gas and
of the major companies in Abu Dhabi.
other natural resources. But technologi-
cally it still has a long way to go, and it
can also be a complex region in which to
Talal Jazayerli, P.E., serves as executive
do business.
director of business development for
From a business process point of view,
Intergraph Process, Power & Marine.
using data more effectively is a big oppor-
tunity for us. Today, many EPC and O/O Sources:
processes are still built around documents Arab News
and paper. Moving these processes to www.arabnews.com
a digital environment, where they can
benefit from accurate data, gives us the Middle East Economic Digest
opportunity to effect a quantum change in www.meed.com
business efficiency. I do not think it would
be an understatement to call this crossing For more information:
the chasm.
Middle East Region
In conclusion, we are very committed
Muhammed Al Aswad
to all of our markets, which has helped
AISC PP&M Regional Manager
us to achieve substantial business growth.
maswad@ingr.co.ae
Being able to provide the most advanced
and powerful technology to EPCs and United Arab Emirates
owner/operators has also ensured that Naji Sayegh
we continue our undisputed leadership Abu Dhabi Country Manager
in the industries we are honored to serve. nsayegh@ingr.ae
Kingdom of Saudi Arabia
Matthew Bantock is an Insight contributor Roger Baroutjian
based in London. KSA Country Manager
rbaroutj@intergraph.com.sa
ppm.intergraph.com
27
 Industry Newsbytes
INDUSTRY
News
bytes
Siemens Goes Global
with Intergraph
Intergraph recently signed a multimillion-
dollar Global Alliance Agreement
with the Power Generation group of
Siemens AG to standardize worldwide
on Intergraphs SmartPlant Enterprise
suite of software and engineering
integration technology.
Siemens global agreement includes
services and the total SmartPlant
software portfolio of Intergraph Process,
Power & Marine. Applications range from
SmartPlant Foundation for informa-
tion and workflow management to the
engineering and design tools such
as SmartPlant 3D, SmartPlant
P&ID, SmartPlant Instrumentation,
SmartPlant Electrical and MARIAN
for material and supply management.
Because of the high degree of
interdisciplinary integration of the new
SmartPlant software, we expect a further
increase of productivity and quality within
engineering as well as increased collabo-
ration from the implementation of our
global work share concept. The possibil-
ity of integrating third-party software via
Intergraphs integration adapters and
the use of open interfaces to support the
communication with external partners
provides increased opportunities for
an even more efficient support of our
engineering processes, explains Frank
22
Schnabel, Head of Plant Engineering,
Siemens Power Generation, Energy
Solutions division.
www.powergeneration.siemens.com
SmartPlant 3D Sets New Industry
Productivity Benchmarks
Intergraph sets new design and engineer-
ing productivity with the introduction
of new versions of SmartPlant 3D, the
breakthrough plant design software
that eliminates the productivity barriers
imposed by current generation technology.
Launched in July, SmartPlant 3D version
6 now provides new capabilities and
hundreds of enhancements ranging
from integration and model translation
to global worksharing, drawing production
and reporting. In addition Intergraph
will introduce SmartPlant 3D version
6.1, which offers new enhancements
allowing users to leverage Oracle database
platforms, creating a more collaborative
environment of global worksharing
and concurrent engineering for
simultaneous design.
SmartPlant 3D transforms advanced
functionality, usability and work process
improvement into business benefit to cut
schedules, boost productivity and increase
engineering quality. These benefits are
enabled by breakthroughs in usability,
rules-based design, global worksharing,
drawing automation, real-time clash
detection and operating plant support.
Increased global worksharing perfor-
mance makes SmartPlant 3D even
more useful in supporting worldwide
concurrent engineering and interference
detection. Automated drawing production
enhancements include improved perfor-
mance for piping isometric drawings, new
orthographic and
isometric drawing types and batch
scheduling for drawing generation
during off-peak hours. Report
improvements include simplified
creation and editing of reports as
well as a number of new report types ready
for immediate use.
Shaw Stone & Webster is using
SmartPlant 3D in production for a
number of projects in global worksharing
...SmartPlant 3D increases
equipment and piping design
productivity over current systems
by some 30 percent
mode. G. Patrick Thompson, Jr., senior
vice president and CIO, Shaw Stone &
Webster, said, Shaw Stone & Webster
is working on projects using SmartPlant
3D worksharing among U.S. and interna-
tional engineering centers in Charlotte,
Denver, Boston, Toronto, Mumbai,
Houston and London. This capability
is expected to shorten schedules,
increase design productivity, improve
project execution and promote our
global competitiveness. The system
is fully integrated with our material
management, project management
and fabrication systems.
Shaw Stone & Websters Dave Hargy,

director of engineering technologies, said,
SmartPlant 3D continues to demonstrate
business value. In preliminary bench-
marking, we determined SmartPlant 3D
increases equipment and piping design
productivity over current systems by some
30 percent, through reduced command
entries and its streamlined user interface.
Intergraphs commitment and support
in helping Shaw Stone & Webster make
SmartPlant 3D a success also has been
noteworthy. The company is among
the growing base of firms migrating to
SmartPlant 3D and is one of the major
clients involved in guiding Intergraphs
development direction.
www.shawgrp.com
ppm.intergraph.com/smartplant/3d
IntelliShip Changes the
Shipbuilding Industry
Intergraphs IntelliShip technology has
changed the shipbuilding industry with
the introduction of IntelliShip version 6.0
and the 2006 launch of IntelliShip version
6.1. Shipbuilders now have the ability to
streamline the shipbuilding and marine
work processes, appreciably lowering
manpower, material costs, overall design
and construction capital and shortening
delivery schedules. IntelliShip heralds
the obsolescence of existing CAD-
constrained, heavily customized ship
design and engineering software.
Samsung Heavy Industries (SHI)
Vice President Yeong Soo Bae, Ph.D.,
said, IntelliShip will make tremendous
changes in the traditional ship design
and construction process and these
changes put SHI well on the way to
our goal of significantly reducing design
and construction errors and associated
costs. Bae is directing IntelliShip design
efforts at SHI, which is using IntelliShip
on a growing number of projects at
its Geoje shipyard, among the largest
marine production facilities in the world.
The multidiscipline software addresses
conceptual and detail design of ships and
components, plan approval, production
planning, manufacturing, construc-
tion and risk management. IntelliShip
supports data re-use, global worksharing,
configuration and life cycle data manage-
ment, cost optimization and business
system integration.
Providing secure access to engineer-
ing data, IntelliShip is also the hub of
a shared repository for all ship design,
construction and life cycle management
information. For accelerating design,
fabrication, procurement and construc-
tion schedules, IntelliShip eliminates
many of the sequential dependencies
of the traditional, outmoded and limited
CAD-based design process.
ppm.intergraph.com/marine
Intergraph Momentum
Continues in Asia
Intergraph recently announced it and
SINOPEC, the largest petrochemical
producer and crude oil refiner in Asia,
have entered into a long-term strategic
relationship. The relationship allows
SINOPEC subordinate engineering
companies unlimited access to the
majority of Intergraph Process, Power
& Marine division engineering and
design software including SmartPlant
and PDS applications. The strategic
relationship provides flexible software use
to improve competitive advantage while
reducing administrative and project costs.
Intergraph will supply the software along
with technical support and consulting
to a number of SINOPEC engineering
subsidiaries throughout China.
A key part of this long-term strategic
relationship is the increased levels of
support and services from Intergraph that
are available to the subordinate engineer-
ing companies of China Petroleum and
Chemical Corporation (SINOPEC).
The strategic relationship will significantly
reduce project execution costs by allow-
ing SINOPEC to meet its increasing
Industry Newsbytes
business demands. It will consolidate and
enhance the competitive advantage in
the international and domestic market
for the SINOPEC subordinate engineer-
ing companies, SINOPEC officials
commented. Intergraphs leading
position in the Chinese petrochemical
industry is firmly entrenched and further
confirmed by the establishment of this
long term strategic relationship.
The SINOPEC subordinate
engineering companies have been
using Intergraph software for a dozen
years and the new strategic relationship
will allow all parties to obtain long
term benefits.
www.sinopec.com.cn
Introducing SmartPlant Layout
Intergraph introduces SmartPlant
Layout for preliminary 3D plant layout,
including proposal development, early
design estimates and plant layout optimi-
zation. Based on Intergraphs
next generation 3D design solution,
SmartPlant 3D, SmartPlant Layout
is a standalone product extending
the SmartPlant Enterprise suite
through the addition of tools for
automatic pipe routing, layout case
management, and cost estimation.
SmartPlant Layout enables
preliminary designs to be reused by
carrying forward initial layouts into
detailed design without additional
remodeling -- saving time and
improving design quality. SmartPlant
Layout customers already using
SmartPlant 3D for detailed design
enjoy the benefits of eliminating
up to 90 percent of the remodeling
normally required when transitioning
from preliminary design applications
and formats to detailed design. By
using SmartPlant Layout in conjunction
with SmartPlant 3D, the preliminary
design simply evolves into a more
comprehensive, detailed design.
This saves engineering time and
improves overall plant layout quality.
23
Great Minds Through Time
Navantia Advances Shipbuilding in Spain
New Company
Builds on
275 Years
of History
By Matthew Bantock
Insight Contributor
Navantia, formerly known as Izar,
was launched in March 2005 and has
become Spains leading shipbuilding
firm, offering its services to both military
and civil projects.
But the new company also inherits
more than 275 years of tradition and
experience in the construction, mainte-
nance and conversion of the Spanish
Navys ships.
Rich experience
Navantias history began in 1730 with
the creation of the historic Spanish
military arsenals in Ferrol, Cartagena
and San Fernando, whose shipyards
were used for shipbuilding and repair
in service for the Spanish Navy. In 1908
1730 Shipyards build and
repair Spanish Navy ships
1700
20
these shipyards came to form part of the
naval shipbuilding company known as La
Naval, which also owned civil shipyards,
including those at Matagorda and Sestao.
At the end of the Spanish Civil War,
the state took charge of the military
arsenals and later founded Bazn in 1947,
which started life as a naval shipbuilding
firm. Subsequently, Bazn began
development of its own vessels, thanks
to its commitment to continuous improve-
ment and its ability to adapt to clients
changing needs.
Birth of a company
The new Navantia is a publicly-owned
naval shipbuilding company created
by the division of Izar into two separate
firms with the goal to achieve greater
business efficiency. Navantia employs
more than 5,000 professionals and is
1908 La Naval runs navy and civil shipyards
1900
devoted to superior innovation and
the highest quality.
The same docks and slipways that
today give life to state-of-the-art vessels
such as the F-100 and F-310 frigates and
Scorpene submarines have witnessed
many milestones, including the birth
of the worlds first electrically-propelled
submarine the Isaac Peral, and the
construction of the first Spanish ship with
gas turbine propulsion the Principe de
Asturias aircraft carrier.
Today, Navantias activities include
naval construction, propulsion and
energy, ship repairs, military and civil
platform control systems and weapons.
A long-term user of Intergraph design
technology, Navantia claims to be one
of the very few companies offering
complete capability in the fields of design,
1920 1940

development, production, integration
and integrated logistic platform support,
propulsion and naval combat systems
as well as the ability to deliver fully
operational vessels.
World-leading
cost-performance ratio
Navantias product range includes aircraft
carriers and amphibious vessels. It is
this kind of expertise that has enabled
the company to develop the Strategic
Propulsion Ship, reportedly one of the
most competitive ships of its kind found
anywhere in the world.
Another key Navantia product the
F-100 frigate, built for the Spanish Navy
offers some of the best cost-performance
ratios anywhere in the world. It has given
rise to Spains largest-ever naval innova-
tion program four units have just been
built and one unit is soon to be built.
Highly significant international
industrial cooperation programs have
been created, in addition to an entire
family of leading-edge technology ships
for the export market. For example, five
F-310 frigates are currently being built
for the Royal Norwegian Navy.
This knowledge has also enabled
the company to become known as a
designer and integrator of conventional
submarines. The Scorpene is Avantias
advanced submarine for ocean and
littoral warfare operations, designed
around a common hull form based
on DCNs experience with nuclear-
powered submarines.
Currently, Navantias order book
includes a joint contract with DCN of
France to build two Scorpene submarines
each for Chile and Malaysia, with
deliveries scheduled from 2006 to 2008.
In October 2005, a contract with the
Indian Navy for the engineering of six
Scorpene submarines was also signed.
Navantia is building four S-80 subma-
rines for the Spanish Navy.
1947 Bazn founded 1975 Fene shipyard builds
by Spanish government biggest ship to be launched
from a sloping slipway
1960
The S-80 brings a more sophisticated
submarine to the Spanish submarine
fleet, offering longer range and less risk
of detection. They will be commissioned
from 2011 to 2014.
New commissions
Navantia has just commissioned to
the Spanish Navy the last Segura class
minehunter from a series of six. These
ships are fitted with the most up-to-date
equipment for the detection and destruc-
tion of any kind of marine mines, and
have been constructed with non-magnetic
materials to avoid the action of magnetic
mines. Polyester-reinforced fiberglass
has been used for the hull, and materi-
als such as stainless steel and alloys of
aluminium and copper have been
used for other accessories.
A Suppliers Combat Ship is
being built for the Spanish Navy. This
new design with a double hull meets
international environmental regulations.
It will be commissioned in January 2009.
Finally, in the construction field,
Navantia has just signed a contract with
Venezuela for the construction of eight
patrol vessels to ensure security of that
nations sea and coastlines.
Justifiably proud of its long
shipbuilding history, Navantia enters
a new millennium well-equipped to
compete in the modern world.
Matthew Bantock is an Insight
contributor based in London.
Sources:
www.navantia.es
Nuevas Construcciones Militares
1991 Cartagena shipyard builds 1998 Cartagena shipyard
first Spanish oceanographic ship
suited for the Antarctic
1980
Great Minds Through Time
Navantia Begins Construction
of Spanish Navys Biggest Ship
Strategic Propulsion Ship Built in
Ferrol-Fene Shipyard
In May 2005, Navantia began the
construction of the Strategic Propulsion
Ship. The biggest in the Spanish Navy
with an overall length of 230.82
meters and full load displacement
of 27,500 tons, it will be launched in
November 2007 and commissioned
in December 2008.
The vessel has an aft deck. The
garage to accommodate heavy vehicles
and/or cargo is situated forward. The
main accommodation (damage control)
deck is located above the main deck
and garage. It includes cabins, toilets,
medical spaces, galley and pantries,
offices, mess rooms and recreation
rooms. The aircraft hangar (housing
airplanes and helicopters) is located aft
above the main accommodation deck.
The ship can accommodate more
than 1,400 people, including 243 crew,
103 general staff, 172 flight embarked
unit personnel, a naval landing group
of 23, and 902 embarked forces. At
least 20 percent of lodging space will
be reserved for female personnel.
2005 Navantia designs the
responsible for fastest crossing Spanish Navys biggest vessel
of the Atlantic by passenger ship
2000
21
2005 Golden Valve Awards

The 2005
Golden
Valve Award
Winners

BESTOFSHOW
Blast Furnace Piping System
by Jinwook Choi, PDS Administrator, POSCO Engineering & Construction Co., Ltd., South Korea

This blast furnace piping system composed of stave cooling piping, tuyere
cooling piping, and pulverized coal injection piping was created using
PDS, SmartPlant Review, FrameWorks Plus and MicroStation.

WORKING VIEWS, FIRST PLACE WORKING VIEWS, SECOND PLACE WORKING VIEWS, THIRD PLACE
Mining for Future Close View of Fired Heater Hamaca Upstream Package D
by Nitin Dhamane, PDS Administrator, by V.J. Shankar, Manager, Piping Engineering, by Carlos A. Yanez, Mechanical Engineer,
Hatch, Canada Larsen & Toubro Ltd., India Tecnoconsult S.A., Venezuela

This view showing the bauxite grinding,
crushing and precipitation areas of an
alumina refinery was created using PDS
and SmartPlant Review.
12
This close view of fired heater fuel piping
showing circular burner supply header
piping using 30-degree elbows was
created using PDS, MicroStation and
DesignReview (now SmartPlant Review).
Showing the piping arrangement associ-
ated to crude/crude plate exchanger, vapor
recovery unit, inlet separators and charge
pumps, this image was created using PDS,
SmartPlant Review and FrameWorks Plus.
 2005 Golden Valve Awards

ANIMATION, FIRST PLACE ANIMATION, SECOND PLACE

A Virtual Walk Around Thermal Power Plant Power Turbine Building
by Rajendrakumar G., Draughtsman Gr. I, Bharat Heavy Electricals Ltd., India by Dave Hargy, Director of Engineering Technologies, Shaw Stone & Webster, US

Showing the left-side view of the thermal power plant, this image was With concentration on the turbine building area, this image was
created using PDS and SmartPlant Review. created using SmartPlant 3D for a 2x800MW coal-fired power plant.

Congratulations to this years winners!

The annual Golden Valve competition showcases the expertise
of customers using Intergraph Process, Power & Marine software.
Out of the many models produced for hundreds of projects,
the 15 Golden Valve Award recipients exemplify the best
in expertise and creativity of Intergraph clients worldwide,
said Kevin Stanley, executive vice president, Intergraph
Process, Power & Marine.
The winning entries are not only artistic and technically
superb, they also represent the real-world project successes
and the prestige of our clients.

ANIMATION, THIRD PLACE

Reviewing the Plant
by Mehul B. Dholakia, Assistant Manager, L&T Chiyoda Ltd., India

For integrated engineering of refinery and petrochemical plants,

this image, which reviews the completed plant, was created using
PDS and SmartPlant Review.

13
 2005 Golden Valve Awards

VISUALLY COMPLEX, FIRST PLACE VISUALLY COMPLEX, SECOND PLACE

General View of Gasification Complex NGL Unit
by Saviolo Andrea, CAD Administrator, Snamprogetti S.p.A., Italy by Agus Subiyantoro, PDS Coordinator, IKPT, Indonesia

Depicting Unit 31 hydrolysis and acid gas removal Showing an NGL area with booster compressor structure in front of
and Unit 30 gasification and soot ash recovery this image process pipe rack under a yellow sky, this image was created using
was created using PDS and SmartPlant Review. PDS and SmartPlant Review.

VISUALLY COMPLEX, THIRD PLACE VISUALLY COMPLEX, HONORABLEMENTION

Operator on the Platform Candu6: Inside the Walls Closeup
by Tapio Laakso, PDS Manager, Jaakko Pyry Group Oyj, Finland by David Goland, Atomic Energy of Canada Ltd. (AECL), Canada

Used for the design, operation and maintenance of oil refin- With most of the concrete walls removed for clarity, this close view
eries, this image was created using PDS, MicroStation and of a reactor building at a nuclear power plant was created using
SmartPlant Review. PDS and SmartPlant Review.

14
 2005 Golden Valve Awards

RENDERING, FIRST PLACE RENDERING, SECOND PLACE

Wayagamack PM4 Operating Floor COS/HCN Hydrolysis and Acid Gas Removal
by Simon Gervais, Designer, KSH Solutions Inc., Canada by Saviolo Andrea, CAD Administrator, Snamprogetti S.p.A., Italy

Used to generate models for KSH Solutions projects and 2D Showing ladders and platforms around the raw snygas column,
layouts, this image was created using SmartPlant Review. this image was created using PDS and SmartPlant Review.

RENDERING, THIRD PLACE RENDERING, HONORABLEMENTION

Complex Arrangement Wellhead Platform Under Moonlight
by Silvano Baron Espinosa, Disenador Sr. PDS, Lockwood Greene de Mexico by Aditya Wardhana, PDS Engineer, PT. Tripatra Engineering, Indonesia
S.A. de C.V., Mexico
Glowing under the moon of a tunu gas field, this offshore platform
This complex arrangement used as a design and visualization image was created using PDS, SmartPlant Review, FrameWorks
tool was created using PDS, SmartPlant Review and Plus and MicroStation.
FrameWorks Plus.

15
 Industry Outlook
Maximizing Innovation
Scoring Goals With a Better Game Plan
By Joseph Morray Jr.
Insight Columnist
With this issue of Insight focused
on the European market and client
base, it is interesting to note that a
substantial number of European
organizations have traditionally been
leading their North American and Asian
counterparts in the implementation
and benefits received from advanced
data systems.
Exploring how a company can
organize and plan within the
engineering-construction industry to
maximize innovation and benefits is
always a worthy focus. From our work
with global companies, the following
best practices seem to emerge:
Companies continually define measures
of work effectiveness, which lend
themselves to critical analysis and the
push for more effective tools and work
methods. Whether these measures are
industry-based, such as that supported
by Independent Project Analysis (IPA)
or CII, or in-house metrics, is not critical,
28
but there should be a way to measure
the value of change and innovation.
Innovative ideas are rapidly rewarded
with initial funding, but those ideas
must then support rigorous financial and
organizational analysis when more expen-
ditures are requested. Our best practice
companies involve senior management in
this process, and it is viewed as a seminal
part of their job. During this process,
both financial and management buy-in
is achieved.
A project success is measured not
only on the ability to deliver a fit-for-
purpose facility, and within the financial
expectations, but also whether it is contin-
ually upgrading the methods and tools
employed. Best practice companies
do not tolerate a project or a functional
manager practicing a flat not on my
project philosophy.
Innovation is performed in small steps,
typically six months in calendar duration,
during which time a set of predefined
objectives need to be met. It is key here
to establish value-producing chunks,
with predefined success criteria.
Companies take large projects and
divide them into phases. This approach
creates a feeling of urgency and produces
deliverables continually.
With this short leash, innovators
are provided the full organizations
support to succeed. Accomplishments
are celebrated. Missed expectations are
quickly rectified, or the project is rapidly
reevaluated and stopped. Innovative
companies clearly establish expectations
and success criteria, freeing the
champions to concentrate on
achieving those objectives.
As in so many parts of business, the need
to communicate to the greater organiza-
tion is paramount. At Trinity, we focus on
four different constituents: senior manage-
ment, the project team, those who are
going to receive the implementation, and
lastly, the general company population.
By properly communicating during all
phases of the process, everyone in
the company can be aware as the
innovations mature.
So why do some companies perform
innovation so well, and others are hit-
or-miss? Check your playbook and see
whether you have a game plan that is
part of the company infrastructure. Your
goal production will go up dramatically!
Joe Morray is president
of Trinity Technologies
Corp., a process
industries and energy
consulting firm that
helps owner/operators
and EPC firms
succeed in the use
of information systems.
The company
specializes in driving companies to
align work processes, technology and
organizational change requirements
for the plant environment.
www.trinitytechnologies.com
Editors note: To comment on this
column, send Joe Morray an e-mail at
insight@intergraph.com. Please include
Industry Outlook in the subject line.
Better Integration Better Value
Use Intergraphs SmartPlant Enterprise to better integrate your project engineering and construction worlds
with the supply networks. SmartPlant Enterprise is Intergraphs suite of applications that help companies
integrate engineering and schematics, modeling and design, materials management and project controls,
and information management.

Gain a technically consolidated scope of goods and materials to be supplied, quantities, timelines, logistics, and
delivery tracking. Reduce your project or maintenance costs, and accelerate your startup or maintenance time.

Choose SmartPlant Enterprise to improve your supply processes.

www.intergraph.com

Intergraph, the Intergraph logo, and SmartPlant are registered trademarks of Intergraph Corporation. Other brands and product names are trademarks of their respective owners. 2006 Intergraph Corporation. Huntsville, Al 35824.
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