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PETROLEUM DIRECTORY: Adding new services in Alaska for Michael Baker Jr. Inc. In addition to its traditional engineering services, the company plans to provide a range of operations and maintenance services Alan Bailey PNA Contributing Writer
With its 60-year history in Alaska, Michael Baker Jr. Inc. has established an impressive track record in civil and pipeline engineering. Rather than resting on its laurels, however, the company is embarking on a new phase of business development in the state.
“We are integrating our engineering services with our energy related business,” John Eldred, Alaska manager of Michael Baker Jr., told Petroleum News Alaska. Energy related services include the operation and maintenance management of oil and gas facilities.
The company’s energy division, Baker Energy, has provided energy services in the Gulf of Mexico and internationally for several years.
“We are bringing that expertise to Alaska,” Eldred said.
In Alaska since the 1940s Michael Baker Jr.’s history in Alaska goes back to the 1940s, when the company did the engineering for the Department of Defense early warning radar stations. At around the same time the company did engineering work for the Alcan Highway construction.
Although the company has carried out many engineering projects in Alaska since those early Department of Defense projects, the company really sprang to prominence through its involvement with the construction of the trans Alaska pipeline.
“We were a civil contractor on TAPS ... and the civil parts of the compressor stations, working closely with other contractors,” Keith Meyer, vice president of Michael Baker Jr., said.
Company staff put millions of man hours into the project, including mile-by-mile pipeline design north of the Yukon River and mile-by-mile design of the haul road.
Continued involvement in the maintenance of the pipeline system attests to the team's successful participation in the TAPS construction. For example, Michael Baker Jr. experts assisted with the inspection of the line after the recent major earthquake south of Fairbanks.
“We were just recently called out for the 7.9 Richter earthquake event,” Meyer said. “They called us up the day of the event and said ‘get up here’ — Bud (Alto) and I and two other engineers were on the plane and in Fairbanks that night, and out at 4:00 a.m. the next day, ready for inspection on their line.”
Award-winning pipeline design With its wealth of expertise in Alaska pipeline and road design, Michael Baker Jr. has been involved in a number of other major projects in the state. For example, the company was the civil, structural and pipeline engineer for gravel work and pipeline construction for the ConocoPhillips Alpine project.
In 1999 the company received the Alaska civil engineering achievement of the year award for the design of the section of the Alpine pipeline that passes under the Colville River.
“(This) was the first ever horizontal, directionally drilled pipeline in Arctic conditions, an impressive technical achievement" Eldred said.
Recently the company became the engineer of record for the Kenai-Kachemak gas pipeline from Ninilchik to Nikiski. The company has been involved in permitting, land ownership and pipeline design for this project.
"We've just recently concluded a ... negotiation to help out with inspections during construction," Meyer said.
The North Slope gas pipeline And the company has enjoyed a continuing involvement with studies for the development of a North Slope gas pipeline.
"We've also been working ever since 1978 on a number of proposals for the gas pipeline from the North Slope," Meyer said. "We've continued over the years to work with the Alaska Natural Gas Transportation System people, looking at the highway route ... in addition we worked with the producers’ team ... for their look at the highway route and over the top.” The company has also worked for Yukon Pacific Corp. and the Alaska North Slope LNG Group.
Michael Baker Jr.’s pipeline experience has landed the company several projects in Russia, including Conoco’s Ardalin pipeline, west of the Urals. Currently the company is working on pipelines on Sakhalin Island.
“We have two people over there now on Sakhalin Island working with the potential builders of those pipelines,” Bud Alto, Michael Baker Jr. engineering manager, said.
Michael Baker Jr. is also involved in other engineering related projects. For example, the company's Juneau office supports the development of environmental impact statements. Also, the company is actively assisting the Department of Transportation in its application of the new pipeline integrity management regulations. Other services the company provides include hydrology, electrical engineering, graphical information systems and project management.
Energy services The energy services that Michael Baker Jr. is adding to its existing Alaska business emanate from Baker Energy's so-called operations consolidation or OPCO model. Baker Energy has been successfully running its OPCO model for a number of years in the Gulf of Mexico, as well as in countries as diverse as Nigeria, Thailand and Trinidad.
“We have over 300 (Gulf of Mexico) platforms where Baker provides either manpower, managed maintenance or the complete operation and maintenance of those operations,” Eldred said. “In some cases we simply provide skilled labor — in other cases the operator has turned over the entire operations, everything from maintenance and operations to supply chain management.”
“The success of the OPCO model in the Gulf of Mexico is recognized, and the parallels can allow that success to be duplicated in Alaska. It is a natural progression in the life cycle of oilfield. I am excited about the possibilities,” Eldred said.
Advantages to the operator The OPCO model provides two major benefits for oilfield operators: service cost sharing and a fresh look at how to do things.
“An obvious area of benefit is in the area of shared services. This has been recognized and implemented on the North Slope for a while. It brings everybody’s cost down”, Eldred said. “We feel we can build on that model in both the Cook Inlet and the North Slope,” he said.
And Baker Energy’s broad experience of oilfield operations often brings new perspectives to a situation.
“We’ve worked with the majors and the independents around the world, both onshore and offshore, in domestic and international locations. That expansive view has allowed us to select and implement best practices, and it is reaping benefits for both us and our clients,” Eldred said. “Our vision is to bring that model to Alaska.”
Maintenance management Baker Energy has built a particular expertise in maintenance management. That expertise is now available in Alaska through Michael Baker Jr.
“Depending on the stage that the client's in, we have gone in ... and actually set up the computer maintenance management system during or prior to (facility) startup or during design,” Eldred said. “We’ve also gone into clients that have systems where they want to change from a particular maintenance management system to another one — we've gone in and done the data conversion, moved it over and reset the system with a different interface program. We are currently involved in an operation of that type for a client in Alaska.” As well as setting up maintenance management systems, Baker Energy enjoys extensive experience of using the systems, both through its OPCO services and through specific maintenance management contracts.
“We continue to add to our portfolio of energy services, in particular squeezing out more and more efficiencies by the use of technology,” Eldred said. “Computing power combined with today’s available communication tools have allowed us to streamline field operations, while maintaining complete control of our operations, logistics, and compliance issues.”
Continuing to provide engineering services Although Eldred anticipates expansion of Michael Baker Jr.’s energy services in Alaska, he stressed that the company would continue to provide its hallmark engineering services.
“We’re going to continue to provide our traditional capabilities — we're just going to add to them,” Eldred said. “We have very talented professionals, with a wide range of skill sets and experience backgrounds. That expertise is not going to go away. I am committed to blending our current expertise with our energy services.”
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