OIL & GAS

Listed below are the selected projects which best demonstrate our expertise. Please contact us for our complete engagement portfolio.
 

PIPELINE

OFFSHORE

ONSHORE

PIPELINE

Pipeline Project
Bolivia, South America

Nielsen-Wurster was engaged by Wilbros, the constructor of an approximately 300-kilometer natural gas pipeline to connect several major existing and under-construction pipelines in Bolivia, South America for Petrobras. Nielsen-Wurster prepared expert analyses of delay, disruption, productivity and inefficiency, and cost impacts for submission in an ICC arbitration. Issues included permitting and access delays, owner interference, changes in scope and requirements throughout execution, owner delays in processing engineering, force majeure (strikes and blockages), and additional special works, out of sequence work, late material deliveries, acceleration, and ripple impacts. Based on the analysis and Claim Submission that was prepared by Nielsen-Wurster, Wilbros was successful in obtaining a satisfactory settlement of the matter.

HBJ Gas Pipeline
India

Nielsen-Wurster was engaged by the gas turbine and compressor supplier, Dresser-Rand, to provide Dispute Resolution Services on the Hazira-Bijaipur-Jagdishpur (HBJ) pipeline project in India, a massive 2,300 km pipeline built to transport gas across six states: Gujarat, Rajasthan, Madhya Pradesh, Uttar Pradesh, Haryana and Delhi. Numerous Owner-initiated changes resulted in delays to the manufacturing of equipment, which in turn caused shipment and customs delays. Nielsen-Wurster performed a detailed Phase I analysis of schedule delays, disruption, acceleration, Owner changes, equipment manufacturing and other issues, which was used by the client in its negotiations to resolve the issues with the Owner.

Natural Gas Pipeline
Tasmania

Nielsen-Wurster has been engaged to provide Dispute Resolution Services on behalf of Contractor, McConnell Dowell, for claims arising on the new Tasmanian Natural Gas Pipeline. Commencing in Victoria, Australia, the new pipeline will stretch 714-km across Bass Strait to Hobart, Tasmania, requiring extensive onshore and offshore drilling. Contractor’s scope included the installation of 14, 8 and 6-inch diameter pipelines in the onshore 241-km section between Five Mile Bluff and Port Latta, Tasmania. Issues involved include delay, disruption, Owner performance, cost impacts, and allocation of responsibility.

Pipeline Projecte
Pinellas County, Florida, USA

Nielsen-Wurster evaluated professional responsibility for construction phase services related to a claim submitted by Pinellas County against CH2M Hill on a water pipeline project. The Pinellas County Water System contracted with CH2M Hill for the design of approximately 12.5 miles of a 54-inch and 60-inch pre-stressed concrete and steel cylinder pipe water pressure main as part of the County's main distribution system. The County solicited bids and awarded contracts for the manufacture and installation of the pipe using CH2M Hill plans and specifications. The County also placed its own crew of inspectors on the Project. Approximately one year after completion, one segment of pipe failed and, subsequently, a second segment failed under hydrostatic testing. The County filed a claim against CH2M Hill for failure to perform its professional responsibilities during the construction phase of the contract. Nielsen-Wurster evaluated the contract documents and national standards of specification for design, manufacturing and installation of pressurized concrete pipe. Based on the results of the evaluation, Nielsen-Wurster provided testimony supporting CH2M Hill's design and construction phase services.

U.S/Canada
Tasmania

Nielsen-Wurster provided Dispute Resolution Services on a $100 million lateral facilities of a 1,900-mile, $9 billion gas pipeline project extending from northwest Canada to the mid-western United States. Nielsen-Wurster was retained by the pipeline Owner regarding a dispute with the Project’s Engineer. Nielsen-Wurster had been tasked with analyzing issues involving engineering errors and omissions, and design rework. Nielsen-Wurster also quantified the extent of delay and disruption resulting from the engineering and rework issues, as well as quantified the resulting damages.

OFFSHORE PROJECTS

Offshore Oil Project
Mexico

Nielsen-Wurster provides strategic claims development support regarding problems experienced by a global energy engineering and construction firm on an offshore oil project. Significant kilometers of pipeline are included within the analysis. Issues involved include schedule delay, disruption, and labor and resource inefficiencies. The matter is currently underway and thus, the client and project are confidential.

Kizomba A
Offshore Platform, Angola

Nielsen-Wurster is currently engaged by a member of a joint venture contractor on this 250,000 barrel/day tension leg platform, off the African coast. The platform is served by 36 wells. Our involvement relates to the analysis of various ballast related fabrication, changes to the scope of work and any resulting performance shortcomings by various vendors and subcontractors. Inherent in our analysis has been the evaluation of the fabrication labor productivity, significant labor hour overruns associated with management activities and the schedule impact and delays associated with the performance shortcomings. The analysis has also included a comprehensive review of changes in the scope and the impact of the change on the performance schedule. The case is ongoing and it's anticipated that upon completion of our analysis, an expert report will be issued.

Perez Companc-Norcen-Corod Oritupano
Leona Oil Fields, Venezuela

Foster Wheeler Caribe entered into five separate contracts to perform engineering, procurement, construction and general services for the Consortium Perez Companc-Norcen-Corod, an oil field production operator working under a production contract to PDVSA, the Venezuelan national oil company. The work was performed in the Oritupano-Leona fields in eastern Venezuela. A commercial dispute encompassing three contracts and two purchase orders arose; 90 percent of the disputes arose from the unapproved change orders on the crude Dehydration Plant which was the first and the largest of the contracts. The crude Dehydration Plant was competitively bid and awarded to Foster Wheeler Caribe. During the early months of the execution on the Dehydration Plant, Foster Wheeler Caribe repeatedly flagged deficiencies in engineering performed by the consortium’s engineering company. Following engineering reviews, the engineering company was banished from the work site and the consortium took over making significant changes in Foster Wheeler’s work scope. Mechanical completion in the Dehydration Plant was delayed and when issues there were significant exceptions and many non critical punch list items. Nielsen-Wurster was engaged to assist Foster Wheeler to determine its entitlement on outstanding change orders and claims; to determine whether Perez had agreed to specific work scope extras over the course of the Projects; and to calculate what additional work scope and the cost thereof. Nielsen-Wurster analyzed the Project records (in Spanish) and prepared a summary presentation in both English and Spanish of the Entitlement issues as well as a chronology that was presented to PdVSA, which agreed to serve as the mediator. Using the Nielsen-Wurster analyses, Foster Wheeler was able to convince PdVsa to conclude that Foster Wheeler was indeed entitled to the majority of that claimed which was subsequently paid to Foster Wheeler in settlement of the issues.

Lama NGL Project
Maracaibo, Venezuela

Nielsen-Wurster was engaged by the EPC Contractor to prepare analyses regarding its claims against Petróleos de Venezuela S.A (PDVSA, the Venezuelan state oil company) on the Lama NGL Project at Lake Maracaibo, Venezuela. The NGL Project was to replace the liquification compressor module and associated elements on the Lama platforms as they continued in operation. (The original module had been destroyed in an explosion). The EPC Contractor was engaged under a lump sum turnkey (LSTK) contract and asserted that changes led to growth in the project scope and commissioning issues led to delay, disruption and cost overruns, all of which the EPC sought in damages from PDVSA. Nielsen-Wurster prepared expert analyses of the project execution and impacts for an International Chamber of Commerce arbitration. Issues involved include scope of work and compliance under the LSTK contract, safety compliance, betterments versus required scope, workmanship and project management. The decision was very favorable to our client.

ONSHORE PROJECTS

Pemex Demineralization Plant
Tula, Hidalgo, Mexico

Nielsen-Wurster evaluated issues involving technical design, cost damages and management with respect to a demineralization plant at a Pemex refinery in Mexico. The client is the Owner of the process and had retained a Mexican Contractor to perform some of the detailed design and construction. The Owner sought to recover costs associated with turnover of systems, and additional engineering services to correct what the Owner determined to be erroneous engineering by the Mexican Contractor. The Mexican Contractor filed a counterclaim to recover alleged out-of-scope requirements required by the Owner. Nielsen-Wurster, with its bilingual staff, provided written filed testimony in Spanish for this ICC arbitration with respect to design errors and omissions, industry standards, and delays. The Tribunal decided in Nielsen-Wurster’s client’s favor.

Altona Refinery Expansion
Melbourne, Australia

Nielsen-Wurster was engaged by John Holland Construction and Engineering (JHCE), the Constructor for a new Greenfield expansion of the Mobil refinery in Melbourne, Australia. JHCE entered into a fixed price contract to construct the Project pursuant to a preliminary design executed by the Engineer-Procure-Construct (EPC) Contractor. The JHCE bid was predicated upon and awarded on the provisions that the total quantities would be 90 percent of those projected by the EPC Contractor in the preliminary plans, and that all reasonable cost savings would be pursued by the EPC Contractor during design completion in conjunction with JHCE, including modularization. The EPC Contractor, after award, declined to pursue such approaches when Mobil began to request price concessions under the EPC contract. The EPC Contractor further did not deliver engineering for construction and equipment when scheduled; significant misfabrication issues occurred; and contaminated soils were discovered. The EPC Contractor refused to provide compensation to JHCE for delay, disruption and acceleration. The EPC Contractor alleged management failures and workmanship deficiencies. Nielsen-Wurster evaluated JHCE claims, EPC Contractor counterclaims and impacts. Nielsen-Wurster prepared and filed Expert Witness Statements in the International Chamber of Commerce (ICC) Arbitration under the laws of Japan with hearings held in Vancouver, British Columbia, Canada. Nielsen-Wurster’s testimony eliminated Constructor management issues from the bases of the Tribunal’s decision.

Luberef Refinery Project
Saudi Arabia

Nielsen-Wurster was engaged by a major Japanese Engineer-Procure-Construct (EPC) Contractor for two efforts regarding this 2-million-barrel-per-year grassroots lube base stock refinery, including a Vacuum Distillation Unit, Mobil Lube Dealing Unit, Propane Deasphalting Unit, Furfural Extraction Unit, Hydrogen Plant and Sulphur Recovery Unit, all associated tankage, utilities, buildings, marine loadings facilities and associated tie-ins with the existing refinery. The first Nielsen-Wurster effort related to evaluation and analysis of change orders and disputes between the EPC Contractor and a prime contractor for civil works and mechanical process equipment installation (the Saudi Arabian subsidiary of a Korean firm). The second effort was with respect to the EPC Contractor’s disputed change orders and time extension requests from the refinery Owner/Operator. Issues involved the timing, scope and complexity of alleged changes, workmanship and performance issues, delay, disruption and the delay and cost impact quantifications. Questions of scheduling system adequacy and manipulation were part of the analysis. The Nielsen-Wurster evaluations led to negotiated settlements favorable to the EPC Contractor.

Tupras CCR – ISO Refinery
Izmir, Turkey

Foster Wheeler Italiano (FW) was the Lump Sum Turnkey (LSTK) Contractor for the design, supply of equipment and materials, construction, training, commissioning and fulfilling acceptance requirements of the CCR Reforming and Isomerization Units Project at the Tupras Refinery in Izmir, Turkey. The LSTK, 28-month Project had a lump sum contract value of US$161 million. FW engaged Nielsen-Wurster to perform expert evaluations of FW impacts of US$13.5 million and two months relief for delay from Force Majeure events (earthquakes), engineering changes and onerous contract application by the Owner. Nielsen-Wurster’s independent efforts strengthened the presentation of the FWIt requests for use in negotiating settlements with the Owner.

Haradh Arabian Light Crude Increment II Development Project
Saudi Arabia

Nielsen-Wurster was engaged by Engineer-Procure-Construct (EPC) Contractor, Snamprogetti S.A. Ltd., regarding the design and construction of this light crude development facility, including all associated equipment, tankage, utilities, buildings, piping and tie-ins with existing facilities. Nielsen-Wurster’s analyses center around the provision of contract administration and Dispute Resolution Services. Nielsen-Wurster performed a review and analysis of change orders, requests for time extensions and requests for acceleration; cost analyses and damage quantification. Nielsen-Wurster also assisted Snamprogetti in the review and analysis of interim applications for claims received from its main subcontractor and performed analyses of schedule delay, causation and responsibility, as well as productivity and inefficiency. In addition, Nielsen-Wurster reviewed the costs associated with the subcontractor’s claims and analyzed the method used to quantify damages. Other issues analyzed include the timing, scope and complexity of alleged changes, workmanship, performance, project management and resource levels. Nielsen-Wurster’s analyses assisted Snamprogetti in developing a detailed response to the subcontractor’s claim request under its Interim Application.

Ahmadi Oil Distribution Facility
Kuwait

The Kuwaiti civil works Contractor engaged Nielsen-Wurster regarding claims made against the Bulgarian design-builder/equipment vendor of the facility. The issues involved design defects, changed conditions, interference with performance and non-payment involving a large oil distribution facility in Kuwait. The issues and the Nielsen-Wurster analyses occurred prior to the Gulf War. The invasion occurred on the eve of the commencement of hearings in an International Chamber of Commerce (ICC) Arbitration. Following the war and despite the Project’s destruction during the war, the Arbitration proceeded again with extensive Nielsen-Wurster Expert Witness Statements in the ICC Arbitration held in Geneva under Kuwaiti Law. The Arbitration decision was in favor of Nielsen-Wurster’s Kuwaiti client. The Nielsen-Wurster effort for non-US clients included evaluations and Witness Statements reflecting Islamic Law interpretations. Nielsen-Wurster has extensive experience with projects executed under Napoleonic Code-based legal systems, including Islamic Law, as well as common law-based systems.