Constructing Australia’s rapidly expanding pipeline network is attracting a growing number of players. Diversified believes it is experience and safety records that separate these players into different performance and capability categories. Diversified delivers high-end capability in oil, gas and water pipelines, including waste water and treatment facilities, covering construction and maintenance services.

Chief Executive Officer Robin Bailey said “Getting the job done to high standards, with a primary focus of zero injuries and delivering full client satisfaction is the trademark of Diversified Construction Corporation. We achieve this by maintaining rigorous time schedules and bringing a proven, highly effective and co-ordinated team to the job.”

The company

Diversified said that the foundation of the company’s range of capabilities is the financial strength and transparency that goes with public company ownership and the depth of skills of its personnel. Diversified is a wholly owned subsidiary of ASX listed Walter Diversified Services Ltd. Walter Diversified has been delivering solid results and has the confidence of key institutions and banks. Diversified has a good depth and range of pipeline construction skills, with a total personnel complement of over 600 people. Mr Bailey said “We are one of the few companies to operate in each of the core sectors in pipeline work.” These sectors include upstream – flow lines and gathering systems, midstream – transmission pipelines, downstream – distribution networks and the capability of mechanical and equipment installation as well as fabrication. The majority of the company’s oil and gas pipeline and facilities work is currently generated from upstream and midstream activities, for a range of clients. The capability chart [see page 106] summarises the services offered by Diversified.

Current projects

Diversified is responsible for a significant proportion of the pipeline requirements of Santos. A particular emphasis is on the design and construction of oil and gas flow lines in the Cooper Basin and eastern Queensland coal seam gas (CSG) fields, major oil and gas pipeline construction, repair and maintenance, instrumentation and electrical work and general maintenance work on leases. Work for Santos, including the Fairview Field, is expanding in line with the growth of the CSG industry. Diversified said that ongoing work at Fairview encompasses both gas and water gathering systems of HDPE pipelines as well as lease facilities, work and installations.

The company said that water pipeline operations are focussed, at the moment, on two major projects in Queensland. These projects are for the Gladstone Area Waterboard and LinkWater. The projects involve the design and construction of major water pipelines.

Pipeline skills appeal

The reticulation of water and waste water and the operation of water and waste water treatment plants is becoming increasingly important. As this sector expands it requires contractors with higher levels of experience and sophistication. Diversified’s specialist entity, the Water & Civil Business Unit, has expertise in the design and construction of pipelines and associated facilities. The company said that it is also delivering capacity, skills, experience and a proven track record of reliability for a growing number of organisations. Typical areas of work include water supply networks, water trunk lines, sewage reticulation, treatment plants, pumping stations, asset management, contract maintenance and emergency works.

Strengthening Diversified

One specialised activity of Diversified is microtunnelling, a non disruptive method of pipelaying which minimises the impact on communities and the environment. Microtunnelling, a trenchless technology also known as non destructive road crossings (NDRC), is a technique that is now needed on a rapidly growing basis. Diversified has significantly expanded its capacity in microtunnelling and pipe jacking services with the acquisition last year of specialist company DJ and MB MacCormick. The company has been renamed MacCormick Civil and Tunnelling. As well as being used in association with crossings under road ways or with duplication of existing services in heavily built up areas, it is also an ideal process in environmentally sensitive areas such as mangrove swamps, contaminated ground water and areas of rare flora and fauna.

The acquisition of Ackroyd Engineering Services (AES), a highly regarded specialist in on-site installations and pipe spooling fabrication works, became part of Diversified earlier in 2008. The AES team is also very experienced in plate and structural work and has a strong history in the petrochemical, water and power sectors with major project contractors including Alstom Power, ABB, ALMC and Barclay Mowlen. AES also undertakes a number of site based installations in the Surat Basin in southern Queensland under contract with major energy company Queensland Gas. The founder of AES, Rohan Ackroyd, as General Manager continues to drive the development of the company and, also retains a significant portion of equity.

Environmental management

Diversified has developed a particularly strong approach to environmental management which has led to the implementation of environmental planning and monitoring systems for all projects. This ensures that operations are conducted to the highest environmental standards. An example of this is the large scale forestation program initiated by diversified on the Jackson to Moomba pipeline to offset carbon emissions [see article on page 188]. The Diversified environmental management system is accredited to ISO 14001 Environmental Management systems and is fully integrated with project management and reporting systems. Diversified said that these standards play a vital role in ensuring that the projects meet, or exceed, all environmental objectives and regulations. Diversified achieved independent third party certification to ISO 14001 in July 2008.

A healthy record

Dave Williams, General Manager Business Improvement, said that Diversified’s health and safety record is better than the industry average. “We have a commitment to zero harm to people, equipment and the environment.” A current initiative aims to change and improve people’s behaviour and attitudes towards safety. Mr Williams said the checking of jobs and procedures is important, but safety is a proactive issue, “The company has an excellent record but we believe that this is a continuous process.” WorkCover Queensland recognises this excellent record and grants Diversified a significant discount as recognition of excellent work practices. Mr Williams explained that “we have Safety Officers on all jobs and projects to monitor and advise. It’s a daily routine, an on-going program to keep the attitude right.” Diversified said that the programs are based on personal responsibility, accountability, fostering a learning culture and a consistent safety message.

Diversified – a flexible approach

Mr Bailey believes an explanation of Diversified’s approach to finalising contracts and then delivering makes clear the company’s philosophy. “We believe in a practical and hands on approach to all our work. We work on the ground and also believe in a down to earth approach.” Mr Bailey said that in this industry, where clients are dealing with large capital outlays and a critical need to get their products to market as soon as possible, Diversified looks to adopt a ‘get it done’ attitude. This approach sits alongside the company’s focus on safety first and has helped to make Diversified a highly respected provider of design, construction and maintenance services. Mr Bailey said “I would like to add; we are not adversarial in our approach and will look to mutually agree on client requirements, up front and then deliver. We believe this philosophy will take us to a successful future.”

Diversified Projects

Tarbat to Jackson oil pipeline Client: Santos Project value: $35 million Scope: Construction and commissioning of a 135 km pipeline of DN 250 API 5L-X70, wall thickness of 6.6 – 7.5 mm, from the Santos facility at Tarbat to a custody transfer meter station located at Jackson in southwest Queensland. The pipeline crossed over wide expanses of the Gibber Plains but included numerous creek crossings and one major road crossing. All crossings were open cut and returned to their original contours after installation.

Jackson to Moomba oil pipeline Client: Santos Project value: $60 million Scope: This new pipeline was required to service increased production from the Jackson and Tarbat areas in south west Queensland. The pipeline is 273 km long and built from 200 mm diameter X70 steel. The entire length is buried, except for risers, main line valves and scraper stations.

Comet Ridge to Wallumbilla Pipeline Client: Santos Project value: $48 million Scope: A pipeline was required to transport CSG from the Fairview/Comet Ridge field to the gas hub at Wallumbilla, on the Roma to Brisbane trunk line. The pipeline is 127 km long and fabricated from 400 mm diameter X70 steel pipe. The scope included early contractor involvement in design, transport of the pipes from Wollongong in New South Wales, construction by traditional weld process, concurrent fibre optic cable installation and hydro testing and commissioning. The project included construction of end facilities at Fairview and Wallumbilla and mainline valves on route.

Berwyndale Project Pipeline Installation Client: Queensland Gas Company Project value: $16 million Scope: This contract involved construction in the environmentally sensitive Condamine River areas of steel and HDPE pipelines. The project gives future access into the Ubergang and North Berwyndale CSG fields. A 22 km water transfer pipeline from the Kenya CSG field to Berwyndale South was also included. It is a 356 mm OD AP15X 42 Trimlaminated coated steel pipe.

Wivenhoe to Toowoomba Pipeline Client: Queensland Government Project value: $187 million Scope: A 40 km pipeline is to be built to supply up to 14,200 million litres of water each year. It is a critical, time sensitive project with Toowoomba’s combined dam levels down to 11 per cent in July 2008. A compressed construction timeline will result in the pipeline being built in December 2009 and being fully operational by the end of January 2010.

Berwyndale to Wallumbilla pipeline Client: AGL Project value: to be determined Scope: A 400 mm diameter high pressure steel pipeline is required to transport natural gas to the planned Condamine Power Station, 8 km east of Miles Queensland, from the Wallumbilla gas hub. The planned length is 113 km. Diversified, as the preferred contractor with WorleyParsons, is undertaking phase one of the project – engineering design and construction planning as well as development of a price.

Gladstone Fitzroy Pipeline Project Client: Gladstone Area Water Board Project value: $10.3 million [phase 1] Scope: The purpose of this project is to secure the short and long term supply of water to the Gladstone region. It enables the transfer of up to 30 GL of water per year from an intake on the Fitzroy River to a service reservoir near Gladstone and on to existing and new customers. Overall, project delivery is from November 2007 – October 2010. The pipeline project is to be managed on behalf of the Gladstone Area Water Board by a joint venture of Clough Limited, Diversified Construction and United Group.

Brisbane Caboolture Aquifuture Alliance Client: Brisbane City Council and Caboolture Shire Council Project value: $18 million Scope: This contract involved Diversified as part of the Brisbane Caboolture Aquifuture Alliance and thus working with two government entities.