BJ Process & Pipeline Services: Added Strength
Oil and Gas
By Chris Petersen   
Wednesday, 23 April 2008
smc BJ Process & Pipeline Services, Houston, Texas
BJ Process & Pipeline Services is one of the leading providers of oil and gas services in the world, and its strategy of acquisition continually adds to its strength.








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There are nations whose armies aren’t as well equipped as BJ Process & Pipeline Services (PPS). Based in Houston, the global provider of oil and gas services has one of the largest fleets in the industry – more than 1,000 pieces of major equipment – according to Division Technical Manager Andy Barden. This has helped the company become one of the premier process and pipeline service providers in the world, with a significant global market share.

“In a lot of our markets outside of the U.S. – for example, in Europe or the Middle East or Asia – I would say we are one of the dominant players in the industry,” Barden adds.

However, there’s more behind the company’s dominance than the size of its fleet.

Barden says BJ is just as well known for its heritage and expertise. In recent years, these have been bolstered by the company’s acquisition of innovative companies such as Norson Services Ltd. and PROFILE International UK.

“I think the size of the company, the history and experience of the company is there because we’re the oldest company in the business, and because of the breadth of experience and diversity of experiences that we offer,” Barden says. BJ PPS marked its 40th anniversary in 2007, but the company’s roots date back to the Byron Jackson Co., founded in 1872 by Byron Jackson, who invented the submersible centrifugal pump.

Barden says the future of the company lies in the same strategy it has employed in the past: bringing new technologies to the market as well as finding new areas in which BJ can excel. “I think there are still continued opportunities for growth, both geographically in terms of expansion to new frontier exploration areas and also bringing new technologies into the industry,” he says.

Process Services
The depth of services that BJ provides for its customers in the oil and gas industry is a point of pride for the company, Barden says. Its process and pipeline services range from tried and true processes to those that were innovations when BJ introduced them.

The company’s process services were initiated in the 1970s, starting with purging systems for turnarounds and other nitrogen services. BJ’s primary customers for process services are in the downstream and midstream oil and gas industry, but it also works in the power, metals and mining industries. Over time, BJ introduced procedures such as nitrogen/helium leak testing, which it says has now become the standard process for testing a new system for leaks before startup.

BJ says it has the largest fleet of process nitrogen equipment in the world today, and has a strong presence in accelerated cooldown applications. These are typically situations during which a process reactor needs to be cooled down before maintenance can be done. BJ has proven to be an innovator in this area due to its development of hybrid carbon dioxide cooldown services, which use nitrogen gas to carry liquid carbon dioxide into the stream. This creates greater efficiency without the freezing caused by liquid nitrogen, the company explains.

Hydrostatic pipeline testing is another of BJ’s core competencies, providing customers with services ranging from equipment rental to the entire package from planning to execution.

Barden says the company’s technological strength is what gives it the edge in this respect. The company says it has pumps ranging up to 2,000 horsepower and can achieve pumping pressures up to 20,000 pounds per square inch.

Chemical cleaning is a common procedure for process services, but BJ says it has gone a step further and separated chemical cleaning from treatments that are used for purposes other than cleaning. These include drying pipes, applying an inhibitor for preservation and reducing surface tension on pipe walls.

The company has found ways to put its fleet of equipment to use for the oil and gas industry beyond process and pipeline services, as well. For example, BJ offers enhanced oil and gas recovery, which involves injecting water into an oil-producing reservoir to increase the pressure inside the reservoir and therefore the flow of oil. BJ says its large fleet of centrifugal pumps is well suited for tasks such as this.

smc BJ Process & Pipeline Services, Houston, Texas

Pipeline Services
Pipeline services have been a part of BJ’s repertoire since 1967, and include precommissioning, commissioning and maintenance. BJ has performed pipeline work from the Gulf of Mexico to the Andes Mountains, emphasizing its experience in environments as disparate as the Arctic and Saudi Arabia.

Umbilical testing is a major focus of the company’s pipeline services, and Barden says this is because of the rise in subsea operations that use it. Umbilical tubing is frequently used in subsea operations to open valves, monitor pressures and inject chemicals into the stream. BJ has also developed equipment specifically used to flush and clean umbilical tubing.

One recent addition to BJ’s pipeline services is its Underwater Pipeline Data Acquisition and Transmission Equipment (UPDATE) system. The UPDATE system allows a construction or support vessel to perform hydrotests remotely, freeing it to move on with other work while the test is completed, according to the company.

Total Capabilities
Because of the company’s diverse experience, BJ is in a select group that can commission pipelines from the planning stages to the finished product. “This is based on our extensive history and experience with methanol swabbing, which is almost always propelled with product gas, and our knowledge and patented technology for commissioning ethylene pipelines,” the company says.

“In addition, we have a large range of portable pumps capable of pumping hydrocarbons, which are frequently called upon by clients for commissioning crude or refined product pipelines. This wealth of experience with a wide variety of hydrocarbon systems is recognized throughout the industry.”

Maintenance services provided by BJ include clearing and cleaning blocked lines. For certain jobs involving blocked pipelines, BJ says its gel pig technology allows it to clear large amounts of debris out of pipelines efficiently and cost-effectively. The technology was developed by a related BJ company for carrying sand deep into well bores for fracturing purposes. The substance is a thick gel that BJ PPS uses to pick up debris that builds up on the walls of pipes and carry them out of the pipeline.

This process is more effective than the use of mechanical pigs, the company states, because mechanical devices can become stuck in debris or simply pass over it if it is built up too much. Solvents typically only work on one type of deposit and are not cost-effective to use on large amounts of debris, BJ adds.

The gel is used in conjunction with mechanical devices to effectively carry hundreds of tons of debris out of pipes in one pass.

smc BJ Process & Pipeline Services, Houston, Texas

Deepwater Services
As the industry changes to meet the demands of new sources of fuel, BJ has committed itself to finding new ways of providing clients with the same essential services while also making their operations in these challenging new settings easier.

Cementing is an essential service that BJ provides, and the company says changes in the industry are leading to new ways of getting the job done. “As new technologies and techniques become routine, operators are demanding new approaches to well cementing,” the company says.

“Deepwater exploration, stringent environmental regulations and dozens of other factors drive the need to examine cementing in new ways.”

BJ says products such as its Liquid Stone pre-mixed storable slurries, Deepset slurries for controlling shallow water flow and automated foam cementing system are recent developments aimed at helping clients succeed in more difficult situations. “BJ’s specialized approach and dedication to achieving precision cementing produces innovative equipment, products and techniques that are backed by reliable service in the field,” the company says.

Helping clients work in increasingly difficult environments is one of BJ’s top priorities, the company states, especially in deepwater applications. “Deepwater operations and services require a commitment by all involved for any project to be a success,” the company states.

“BJ’s total commitment toward the deepwater frontier has led it to become one of the petroleum industry’s most-recognized service companies.

“Our deepwater involvement has not been limited to a single product line, but permeates the entire corporation, resulting in fluid and tool systems, acidizing fracturing and pumping that are innovative and unparalleled.”

The company’s recent addition of its C-Port facility in Port Fourchon, La., is a testament to its commitment to deepwater operations. “This unique, world-class facility is designed specifically for deepwater operations,” the company says. “BJ’s established network of port facilities decreases supply logistics while optimizing supply boat loading and unloading time. Large volumes of completion fluids and advanced loading technology help assure that expensive facility-related delays do not occur.”

Adding Capabilities
A big part of the reason why BJ has such an edge in technology is the company’s strategy of acquisition. Barden says BJ is dedicated to finding companies it can bring into the fold that provide a needed service for its customers that BJ can’t provide alone.

For example, the company recently acquired PROFILE International UK, creator of the PROFILE caliper tool. Norson Services, also based in the United Kingdom, was another key acquisition, Barden says, and both companies have brought additional capabilities to BJ. Barden says PROFILE, in particular, helped BJ fill a specific market need that the company has previously not been able to.

“The PROFILE acquisition was basically to give us a reliable, low-cost caliper tool to complement our rather high-end pipeline inspection services,” Barden says. “And the Norson Services business brought several different things, some new technology in the subsea deepwater precommissioning business, some technology in the oil flushing business and market share in both the UK market and also in the umbilical commissioning business.”

In particular, the addition of the PROFILE caliper to BJ’s toolbox has been a major boost to the company in market segments it didn’t serve previously. “The design of the tool makes it particularly robust, and we already have a very high-end caliper tool that has some additional features that the PROFILE tool doesn’t have,” Barden says. “You need a low-cost solution for that particular market segment, which we weren’t able to achieve. One of the other technologies we acquired with the PROFILE acquisition was a smart gauge tool, which is basically an addition to the standard gauging tool which allows us to detect if the gauge plate has been damaged before the gauge plate is removed from the pipeline.”

smc BJ Process & Pipeline Services, Houston, Texas

Calling Reinforcements
Frazer Thompson spent 15 years with Norson Services before the acquisition by BJ, and he says the move has been mutually beneficial. He’s currently BJ’s business development manager for the Gulf Coast region. Foremost, he says, is the greater geographic footprint in which BJ operates.

“Globally, although Norson worked off the coast of Africa, we didn’t have any bases there,” Thompson says. “BJ certainly has a far wider coverage and established presence. BJ is in markets, such as the Middle East and the Far East, that were quite a number of years away for Norson.”

BJ gave Norson the “critical mass to reach farther afield” and a wider client base, Thompson says.

The Norson acquisition has given BJ a greater capacity to provide turnkey services to clients. “BJ did not have the capability of umbilical testing services [before the acquisition],” Thompson says. “The pipeline work that’s carried out offshore is one of BJ’s traditional services, and can also be complimented by the umbilical services.”

The Norson acquisition also brought strength in remote flooding modules, Thompson says. This equipment can be used in subsea applications to flood pipelines from the seabed and can also be used for hydrostatic testing.

“Norson had a tremendous record in the marine industry, working on naval vessels, and oil tankers,” Thompson explains. “So again, BJ can take advantage of a new, but established part of the market.”

Thompson says BJ’s reputation is so strong that Norson was “delighted” to hear that the company was planning to buy it. So far, he adds, the two have been a perfect match. “It was a tremendous team-up,” Thompson says.

Brain Drain
For all the company’s technological superiority, however, Barden says finding the brainpower to put it all to use in the field has been one of BJ’s greatest obstacles of late. “One of the biggest challenges is the lack of experienced personnel in the growing market,” he says. “The business is obviously in growth mode at the moment in all the geographies we operate in.”

BJ has been aggressive about recruiting newly graduated engineers, he says, and although the company has a fast-track training and mentoring program for them, it can be a tough wait for them to get up to speed. However, Barden adds, the end-result is worth it, as those new recruits bring with them new ideas.

“I think in many respects, it can be quite a positive experience, because bringing those new graduates into the company, they come into the business with a fresh pair of eyes and are in a position to challenge the traditional and customary ways of doing things,” Barden says. “So, I think although there are issues in regards to getting them up to speed, it is very beneficial to bring that new blood into the company and can lead to quite a lot of positive change and innovation.”    

The entire industry is feeling the effects of the lack of qualified engineers. “A general trend in the industry is that with the growth in the business at the moment, we’re seeing more reliance by the oil companies on special service companies such as ourselves to provide expertise on a turnkey basis because they are seeing the same shortage of expertise,” he says.

smc BJ Process & Pipeline Services, Houston, Texas

Great Potential
The future for BJ PPS will be in harsher environments than it has worked in traditionally, Barden says. This is because oil and gas resources are being found in more extreme climates and geographies, and offshore operations are being conducted in deeper waters.

“The undertaking of these major projects brings a lot of challenges, whether it be requirements for new technology or development of equipment that would be suited to the harsh-environment situations,” Barden says. However, he adds, the company’s extensive work in areas such as these has given it a good jumping-off point for further innovations.  

“At the moment, we’re doing a lot of work on Sakhalin Island off the east coast of Russia, which is basically snowed in for six months of the year, so the equipment has to be winterized,” he adds. The company’s R&D group is constantly working on developing newer and more rugged technology.

Thompson says there are still plenty of opportunities for growth in the near future, and BJ is prepared to take advantage of them.

“The subsea market is forecasted to grow and grow over the next five years or so, and BJ PPS are in a prime position to take advantage of the growth in that business and offer the turnkey approach on the pipeline and on the umbilical side,” he says. “There’s not many people in this business that can truly do that.”�

 
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