When the oil and gas world shines its spotlight on Perth at LNG 18 next year, the Western Australian state government will showcase a jewel in its crown at the Australian Marine Complex (AMC) in Henderson. The unique Common User Facility (CUF) is regarded as a world-class multipurpose fabrication, assembly and load-out facility.

Undertaking work associated with the massive resource investments in Western Australia post-2010, with liquefied natural gas construction playing a key role, was a major stimulus in the conception and delivery of the AMC. Today, it features 150 companies located within its Support Industry Precinct. All are in close proximity to the shipbuilding and technology precincts that have been pivotal to local content becoming an important part of the fabric of the Chevron-led Gorgon and Wheatstone projects, as well as Woodside Petroleum’s Pluto LNG plant.

The protected, deepwater harbour features five wharves, with three having heavy loadout capability with dredged berthing pockets that accommodate vessels up to 300m in length. In addition, there is a main fabrication hall that is 80m x 60m x 42m with a 200-tonne portal crane lifting capability.

It’s the real live operation every Lego enthusiast dreamed of as a kid. The focal point is a 99m x 53m floating dock with a lifting capacity of 12,000 tonnes, which is used to transfer mighty frigates and submarines.

The self-propelled modular transport system features 18 six-line trailer units, three four-line trailer units, three three-line trailer units and four power packs to move vessels and heavy modules up to 4500 tonnes.

This enables not only the transfer of ships, but also oil and gas jackets, topsides and platforms, and offers local engineering and construction companies the ability to transfer and barge concrete footings weighing up to 130 tonnes to the Gorgon project on Barrow Island.

Uniquely Australian

The AMC’s proudest achievement, however, is its “Made in Australia” characteristics.

“The AMC is a unique Australian facility,” said John O’Hare, general manager, Marine & Defence, Oil & Gas, AMC. “Although we are located on the west coast of Australia, the state envisaged the facility as having national interests and capabilities; hence, it was named as the Australian Marine Complex rather than the Western Australian Marine Complex.

“When the State created the AMC Common User Facility, it was the first of its type in the world. We are very pleased with its success; it has been a significant economic contribution for the state, generating $1.75 billion in economic value and enabling 373 major projects to be completed locally while creating 26,700 local jobs over the past 10 years.”

In regard to oil and gas and support to oil and gas service industries, the AMC is an important facility, O’Hare said.

“When it created the AMC, the Western Australian government was conscious that there were similarities in training, work force and infrastructure requirements across industry sectors such as oil and gas, mining and defence industries,” he continued.

“The state government-owned infrastructure at the AMC was developed for use by those industry sectors. The AMC was created to increase local industry participation in major projects in those industry sectors.”

Keys to success

Asked to outline the key ingredients contributing to the success of the CUF, O’Hare said independent management of the facility was critical and is a confidence builder for companies seeking contracts.

“Our common user model has worked well. In terms of having third-party independent management (AMC Management Pty Ltd), that has been one of the critical ingredients in conjunction with having first-rate marine infrastructure in place,” he said.

“If you are bidding to undertake project work at the facility, you are not competing with the facility manager to win that work.”

Consequently, the Support Industry Precinct has become a hub for 150 companies engaged in oil and gas, specialised marine, mining and engineering businesses.

“You have to be operating in one of those industry sectors to locate in the AMC,” O’Hare explained. “A good example of the type of tenants we tried to attract back in 2006-2007 is when the State, as a manifestation of its desire to increase Australia’s participation in subsea, dedicated part of the AMC as a subsea precinct.”

O’Hare said the AMC is now the base to subsea companies such as Matrix and FMC Technologies.

“Of course, there have been other major investments in capability made outside of the AMC, particular investment by GE in Jandakot, which is one of the largest facilities of its type in the world,” he added. “We would like to see further oil and gas sector investment in Western Australia, and our AMC marketing and investment attraction activities are directed to achieve that objective.”

Increasing innovation

O’Hare defends Australian companies when it comes to cost and productivity criticism, and said, for example, Civmec’s decision to build Australia’s largest fabrication facility at the AMC had been vindicated by the company’s subsequent performance in a fiercely global competitive context.

“They are up against it all of the time in terms of cost competitiveness but again by the use of innovation, technology quality and good management they are doing well,” O’Hare said. “We do not underestimate the barriers, but it is not such a desolate desert as has been made out.”

He said Australian companies are innovative and will rise to the challenge, particularly in the West where historically companies have been at the end of supply chains.

“We are very innovative, looking at new ways of undertaking the challenges and continuing to deliver quality products and services for the resource companies,” he said. “Our fabricators have to be internationally competitive to deliver to the oil and gas industry. We believe that this international competitiveness and innovation can add significant value to the Australian naval shipbuilding industry and we can save the Commonwealth Government considerable funds by getting Western Australian fabricators involved in the Australian naval shipbuilding industry. That is a positive that comes from being cost competitive and globally competitive.”

For the future, O’Hare envisages that one potential future growth avenue at the AMC could be unconventional oil and gas companies, seeking innovations to unlock the shale treasure troves of the Canning and Perth basins.

“What we want to see in the AMC and attract to the AMC is more oil and gas services companies—that includes companies that would service the shale gas market as well,” he said. “If shale gas is coming on we would want to be part and parcel of that, of servicing that market.”

The Western Australian Department of Commerce has proudly showcased the AMC at major offshore oil and gas conferences in Aberdeen and Stavanger, and at OTC in Houston. Through this initiative, international organisations and governments have visited Perth to see how Australians created the facility and whether it could be replicated in their countries.

The Department of Commerce is also a major sponsor of the annual Australasian Oil and Gas (AOG) Exhibition and Conference in Perth, an event tailored to Western Australian companies and their contribution to the oil and gas sector.

But, next year the State is gearing up to welcome visiting international oil and gas executives to the AMC during LNG 18.

“The event was last held in Perth in 1998. It is exciting for Western Australia. The State, through the Department of State Development, is right behind LNG18,” O’Hare said. (Oil and Gas Investor Australia is the global media partner for LNG 18.)

“I am sure that will bring a significant number of business opportunities to Western Australia. It’s fantastic for Western Australia and Australia, and I look forward to welcoming those interested in visiting the AMC whilst they are in Perth.”

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