May 2017 www.osjonline.com
Jones Act changes could see job losses, lower production and reduced energy security
Consolidation in Singapore expected but brownfield/subsea segment could pick up Renewed South American activity could be 18-24 months away
“In the Middle East average utilisation is 65-70 per cent. More than 50 vessels are stacked and more than 30 vessels are due to be re-delivered� Fazel A Fazelbhoy, chief executive officer, Synergy Offshore, see page 17
Load Movement Engine
Designed to evolve. As the market landscape changes, we can help you prepare your NOV crane for new projects and expand the window of opportunities for your vessel. Engineering simulations and software Crane capability education Increased capacity and performance Custom designed tools Our team of experts is ready to support you where needed, when needed. nov.com/lh Š 2017 National Oilwell Varco | All Rights Reserved
contents
May 2017
volume 20 issue 4
07 11
Regulars
5 COMMENT 42 IMCA NEWS 45 BEST OF THE WEB 49 VESSEL NEWS
News focus 7 A report published by IMCA suggests CBP’s proposed reinterpretation of the Jones Act could have very serious consequence in the US
Area reports
21
11 Southeast Asia: with well known companies filing for bankruptcy consolidation is on the cards 17 Middle East: although the Middle East market has done better than some during the crisis it is characterised by strongly reduced rates for offshore vessels 21 South America: a well known broker says the market in the region is expected to pick up, but not until 2018/19
Unmanned vessels 25 Autonomous unmanned vessels are being studied for a wide range of potential applications offshore
Propulsion 29 Leading manufacturers of thrusters have brought new products to market
38
Rescue boats/daughter craft 30 The first example of Maritime Partner’s newly redesigned range of craft has been ordered by Havila
Crewboats 33 Crewboat builder Penguin International has reinvented itself in the last few years
Deck machinery 35 Ever-greater use is being made of motion compensation systems on offshore vessels
www.osjonline.com
Offshore Support Journal | May 2017
contents Recent deliveries 37 Freja is a unique geotechnical drilling vessel with a heave-compensated drilling system 38 Sovcomflot recently took delivery of the first of four ice-class newbuilds
Operator profile 41 In the current market only a few companies are making a profit and growing – Magseis in Norway is one of them
Safety flashes
May 2017 volume 20 issue 4 Editor: David Foxwell t: +44 1252 717 898 e: david.foxwell@rivieramm.com Deputy Editor: Martyn Wingrove t: +44 20 8370 1736 e: martyn.wingrove@rivieramm.com Brand Manager – Sales: Ian Glen t: +44 7919 263 737 e: ian.glen@rivieramm.com
50 Emergency fire pump could not be started from the bridge
Sales: Indrit Kruja t: +44 20 8370 7792 e: indrit.kruja@rivieramm.com
Market data
Sales: Colin Deed t: +44 1239 612384 e: colin.deed@rivieramm.com
52 Statistics 55 VesselsValue
Next issue Main features include: • main area report: East Africa • dynamic positioning • propulsion/thrusters • bulk handling and tank cleaning • oil spill response • special reports: Spanish shipbuilding & Turkish shipbuilding.
Front cover photo: Siem Stingray, an example of an international construction vessel that could be affected by changes to the Jones Act (photo: Vard)
Head of Sales – Asia: Kym Tan t: +65 9456 3165 e: kym.tan@rivieramm.com Sales – Asia & Middle East: Rigzin Angdu t: +65 6809 3198 e: rigzin.angdu@rivieramm.com Sales – Southeast Asia & Australasia: Kaara Barbour t: +61 414 436 808 e: kaara.barbour@rivieramm.com Production Manager: Ram Mahbubani t: +44 20 8370 7010 e: ram.mahbubani@rivieramm.com Subscriptions: Sally Church t: +44 20 8370 7018 e: sally.church@rivieramm.com Chairman: John Labdon Managing Director: Steve Labdon Finance Director: Cathy Labdon Operations Director: Graham Harman Head of Content: Edwin Lampert Executive Editor: Paul Gunton Head of Production: Hamish Dickie Business Development Manager: Steve Edwards Published by: Riviera Maritime Media Ltd Mitre House 66 Abbey Road Enfield EN1 2QN UK
www.rivieramm.com
Subscribe from just £299 Subscribe now and receive ten issues of Offshore Support Journal every year and get even more: • supplements: Annual Offshore Support Journal Conference & Awards and Offshore Support Journal Industry Leaders • access the latest issue content via your digital device • access to www.osjonline.com and its searchable archive. Subscribe online: www.osjonline.com
Offshore Support Journal | May 2017
ISSN 1463-581X (Print) ISSN 2051-0594 (Online) ©2017 Riviera Maritime Media Ltd
Disclaimer: Although every effort has been made to ensure that the information in this publication is correct, the Author and Publisher accept no liability to any party for any inaccuracies that may occur. Any third party material included with the publication is supplied in good faith and the Publisher accepts no liability in respect of content. All rights reserved. No part of this publication may be reproduced, reprinted or stored in any electronic medium or transmitted in any form or by any means without prior written permission of the copyright owner.
www.osjonline.com
The largest drydocking facility in Abu Dhabi
MINA ZAYED
MUSSAFAH
Length 180m
Length 80m
Breadth 30m
Breadth 20m
The new floating drydock in Mina Zayed and the Synchro Lift in Mussafah are fully equipped to meet clients’ needs with high quality services and competitive rates.
Lifting capacity 10,000 tons
Lifting capacity 2,000 tons
Contact us directly for more information on our service offering.
Water front 430m
Dry berths 30
ADSB owns and operates two state-of-the-art drydocking facilities in Abu Dhabi – located in Mussafah and Mina Zayed. Each year, an average of 300+ vessels are drydocked and serviced.
Website www.adsb.ae
Fax +971 2 551 0455
Tel +971 2 502 8000
PO Box 8922, Abu Dhabi, UAE
Email marketing@adsb.ae
rolls-royce.com
Award Winning Design:
Fully optimised for the mission and the environment Our ship design and integrated system solutions are results of targeted research and development over many years. Our designs and solutions meet the challenging combination of high performance and flexibility, reduced fuel consumption and optimised life-cycle costs. Our wide range of system solutions includes systems for deck machinery, safer deck operations, propulsion and manoeuvring, stabilisation, dynamic positioning and automation and control. www.rolls-royce.com/marine
Trusted to deliver excellence
COMMENT | 5
COASTWISE OWNERS CAN’T CATER FOR DEEPWATER NEEDS
T David Foxwell, Editor
www.osjonline.com
wo reports, one commissioned by the American Petroleum Institute (API), the other by the International Marine Contractors Association (IMCA), should, hopefully, scotch plans by Customs & Border Patrol (CBP) in the US to radically alter the way the Jones act is interpreted that would have banned international vessels from the Gulf of Mexico. As highlighted earlier by OSJ, numerous industry organisations inside and outside the US have also expressed concern about the proposed changes. A joint trade group opposed to the changes includes the API, the Association of Diving Contractors International, Independent Petroleum Association of America, International Association of Geophysical Contractors, International Marine Contractors Association (IMCA), Louisiana Mid-Continent Oil and Gas Association, Offshore Operators Committee, the US Chamber of Commerce and the US Oil and Gas Association. The reports make it clear that although Jones Act owners have a growing number of light construction vessels and capability suitable for shallow water operations in the Gulf of Mexico, they simply don’t have the vessels or equipment, the financial might or the marine contracting skills to take on work in deepwater. As the API says, proposed changes to the way the Jones Act is interpreted will lead to job losses, loss of GDP in the US, reduced production of oil and gas and will adversely affect energy security in the US. In its early April report, API said it foresees “significant and damaging impacts” from CBP's proposed modifications to its rulings. It says the changes would have an abrupt negative impact on oil and natural gas development and investment in the Gulf of Mexico, further impacting consumers and businesses and substantially decreasing government revenue. According to a Calash report produced for the API, CBP’s proposal could lead to losses in the range of 30,000 industry supported jobs in 2017 with as many as 125,000 jobs lost by 2030, with the gulf states worst hit; a fall in US oil
and natural gas production in the range of 23 per cent from 2017-2030; a decline in government revenue of more than US$1.9 billion per year from 2017-2030; and a decline in offshore oil and natural gas spending in the range of US$5.4 billion per year. It predicts cumulative lost GDP of US$91.5 billion from 2017-2030. “The proposed changes to the rulings should be immediately withdrawn to protect US energy security and allow consumers and businesses to continue benefiting from America’s energy renaissance,” API said. The second report, published by IMCA, acknowledges that the coastwise qualified fleet is capable of supporting offshore activities in shallow water in the Gulf of Mexico, but for deepwater construction activity, beyond 1,000m, the coastwise qualified fleet is almost non-existent. There are no coastwise qualified pipelay vessels, no coastwise qualified heavy lift vessels, and only one coastwise qualified well servicing vessel. There are nine light construction vessels and 23 survey vessels which are coastwise qualified. Even when some planned new vessels are delivered, the coastwise fleet will not meet the capability or capacity gaps. “Despite plenty of opportunity, the coastwise sector has shown neither the intent nor appetite to invest in the larger, higher value assets for the deepwater construction market,” says IMCA. “Nor have they shown the ambition to vertically integrate from vessel owners and marine service companies to marine contractors. “Should the proposed CBP modifications and revocations take place the impact on business in the Gulf of Mexico could be catastrophic, simply because there would be no capacity to install the production facilities offshore,” IMCA says, and the collateral onshore effects would be dire, and the potential impact and risks to industry are grossly out of all proportion to the intended consequences of the CBP’s modification and revocation strategy. A strategy intended to support a limited number of vessel owners – who are not contractors – could well have enormous unintended consequences. OSJ
Offshore Support Journal | May 2017
Extending the Reach
Leonardo Helicopters support the oil and gas industry with unrivalled, cost-effective products at the top of their class in terms of safety and performance. Thanks to maintenance, training and technological commonalities the AgustaWestland product Family enables a new standards in helicopter fleet management. Inspired by the vision, curiosity and creativity of the great master inventor Leonardo is designing the technology of tomorrow.
leonardocompany.com Helicopters | Aeronautics | Electronics, Defence & Security Systems | Space
NEWS FOCUS | 7
JOINT TRADE GROUP CHALLENGES ‘MYTHS’ ABOUT JONES ACT CHANGES A JOINT TRADE GROUP HAS COME TOGETHER TO FIGHT PLANS TO CHANGE THE WAY THE JONES ACT IS INTERPRETED AND DEBUNK WHAT SOURCES CLAIM ARE ‘MYTHS’ PROPAGATED ABOUT THE VESSELS AND OPERATIONS AFFECTED BY THE PROPOSED CHANGES
Opponents of the CBP notice say it covers much more than just light construction vessels
T
he joint trade group opposed to the changes includes the American Petroleum Institute, Association of Diving Contractors International, Independent Petroleum Association of America, International Association of Drilling Contractors, International Association of Geophysical Contractors,International Marine Contractors Association (IMCA), Louisiana MidContinent Oil and Gas Association, Offshore Operators
www.osjonline.com
Committee, US Chamber of Commerce and US Oil and Gas Association. The group has held meetings with numerous politicians in Gulf Coast states to alert them to what it believes are the significant adverse implications of the changes. The Offshore Marine Services Association (OMSA) claims that the vessels most directly affected by proposed changes put forward by Customs and Border Protection (CBP) are light construction vessels of a type of which there is a growing number in the US
with several under construction (as highlighted here: www.osjonline.com/news/ view,jones-act-owners-makethe-case-for-change_47069. htm). As highlighted on a number of occasions by OSJ, although the Jones Act governs the transportation of merchandise between US coastwise points, the CBP notice would expand its scope to include construction, installation and repair operations conducted by foreign-flagged vessels, which have historically been outside
the scope of the Jones Act. Vessels undertaking installation, repair or servicing activity require equipment and material to complete this activity. CBP has long recognised that equipment and materials necessary for a vessel’s mission are not merchandise. Opponents of the plan say the CBP notice would extend the reach of the Jones Act to an entirely new range of offshore construction, installation, maintenance, diving support and repair vessel operations that, for decades, have been
Offshore Support Journal | May 2017
8 | NEWS FOCUS
outside the scope of the Jones Act. They note that a similar proposal by CBP was issued in 2009 but did not proceed and was withdrawn by CBP. The revocations will prohibit non-coastwise vessels from performing installation, repair and servicing activities as allowed by the Jones Act for over 40 years. Industry sources close to the issue say many more vessel types than light construction vessels would be affected by the CBP’s proposed changes. “We are concerned about all areas of deepwater construction,” a source close to the issue told OSJ. “OMSA misleads its audience by focusing on vessels where they have some capability, such as light construction vessels, and claim the changes will not affect other areas.This is naïve as the changes will affect all kinds of activity.” Opponents of the changes point out that there are no Jones Act deepwater vessels capable of heavy-lift or pipelay activity. “Currently, there are no Jones Act vessels with the necessary heavy-lift capabilities required to install topsides or other similar large lift operations without dismantling the components or topsides, requiring reassembly on the Outer Continental Shelf (OCS). There is one Jones Act
Opponents of the changes say facilities such as spoolbases could suffer if international vessels are forced out
Offshore Support Journal | May 2017
heavy lift available for offshore operations, however its hook height is limited, it can only lift loads that can be straddled between its two hulls and its class certification limits it to a maximum 20ft wave height. These are serious limitations, and it cannot complete the lifts that are currently made using foreign-flagged crane vessels. “The lack of the deepwatercapable pipelaying, heavy-lift and well intervention vessels and a shortfall of deepwatercapable light construction vessels along with the operational restrictions imposed on foreignflagged vessels under the CBP notice has the potential to halt almost all deepwater E&P activities in the Gulf of Mexico if the revocations go ahead,” they claim. Sources close to the issue say engagement with foreign-flagged vessels has encouraged inward investment and job creation by companies in the US. A survey of IMCA’s 12 largest global and international contractors found that companies supporting foreign-flagged ships employed almost 11,000 people in the US, including over 1,100 seamen and offshore workers. International companies have invested heavily in spool bases, fabrication yards and USbased design and management
capability, providing American jobs for American workers. Organisations concerned about the CBP notice say it will restrict the operation of foreign-flagged vessels, potentially slowing down or shutting down offshore operations or production, and result in loss of US jobs and revenues. Companies could be forced to build components in foreign yards and/or transport components from foreign yards or simply stop investing in work in the Gulf of Mexico, they say. They also reject claims that the CBP notice will strengthen homeland security measures and note that foreign personnel aboard foreignflagged vessels are subject to strict US immigration laws and visa requirements, as enforced by the Department of State, DHS, CBP and the Coast Guard. Foreign personnel are permitted to work aboard vessels engaged in the US OCS only where the vessel owner-operator obtains a manning exemption from the US Coast Guard. Foreign crews must go through extensive security vetting by numerous US agencies before they can enter the US at both air and port borders. Moreover, foreign-flagged vessels operating in US waters, including the US OCS, are subject to strict security requirements under international, flag state, US federal and state law, including the various IMO Conventions as implemented by flag states and enforced by the Coast Guard. “These vessels are not a threat to homeland security,” say opponents of the plan. “They would not create an immigration free zone, and the CBP notice does not enhance the already strict security regulatory and vetting requirements.” Another ‘myth’ the opponents of the notice claim is being propagated is that foreign-flagged vessels use undocumented foreign labour. They note that foreign crews are subject to the laws
of the flag state and are certificated as competent and medically fit in accordance with the IMO Standards of Training, Certification and Watchkeeping for Seafarers (STCW) convention and must comply with all US immigration laws including visa requirements before entering the country. They also reject claims that the CBP notice will create jobs in the US and increase regional economic output. “To the contrary, jobs will significantly decline because the CBP notice will adversely impact the US offshore job market. Because of the lack of Jones Act vessel capacity to complete key deepwater activities and with the foreign flag reliance on Jones Act vessels for offshore support, the new regulatory constraints under the CBP notice will limit operations of foreign-flagged vessels, slowing down or shutting down offshore operations or production, resulting in reduced demand for Jones Act vessels and a loss of US jobs and revenues,” say opponents of the proposed changes. “The only way to properly consider the economic, safety and environmental consequences of the proposed revocations is to publish a proposed rule in the Federal Register, as was done by CBP in 2009, which would require a cost/benefit analysis to be completed.” Opponents of the CBP notice claim that, if foreignflagged vessels that engage in industrial activity in the Gulf of Mexico are banned, Gulf coast ports will also suffer. “Foreign-flagged vessels routinely support Gulf Coast ports,” said a source. “There are significant spool bases in Mobile, Gulfport, Ingleside and Port Isabel. If foreign-flagged pipelay vessels go away, then so does their need for support.”Offshore fabrication facilities will also suffer, it is claimed. OSJ
www.osjonline.com
VISIT US
NOR-SHIPPING | OSLO 30.05.– 02.06.17 BOOTH: C03-16
WE HAVE EXPANDED OUR FAMILY... THE INTEGRATION OF HARDING SAFETY IS COMPLETED! PALFINGER MARINE is the global leading manufacturer of highly reliable, innovative and customised deck equipment and handling solutions for the maritime industries. The product portfolio includes cranes, lifesaving equipment, winches and handling equipment. A worldwide service network including the supply of spare parts ensures fast and professional onsite support. PALFINGER MARINE operates in all major maritime segments, including Offshore, Marine, Cruise, Navy and Coast Guard, and Wind.
CRANES
LIFESAVING EQUIPMENT
WINCHES AND HANDLING EQUIPMENT
PALFINGERMARINE.COM
Total Solutions for Offshore Business EPC(I), Investment & Operations
www.zpmc.com Toisa Saturation Diving Support Vessel
“Lan Jing”-7500t Floating Crane Vessel
Jack-up Drilling Rig
NPCC Self-elevating Accommodation Barge
12000t Fully Revolving Floating Crane Vessel
4500t Floating Crane Vessel for Shanghai Salvage Bureau
Offshore Wind Business
COSL 15000HP AHTS
5000t Derrick Pipe-laying Vessel for Yantai Salvage Bureau
SHANGHAI ZHENHUA HEAVY INDUSTRIES CO., LTD
Add: 3261 Dongfang Rd, Pudong New District, Shanghai 200125 Tel: +86-21-31195773; +86-15000521113 E-mail: jiangfan@zpmc.com
Shipping Business
Southeast Asia AREA REPORT | 11
NOTABLE OWNERS BASED IN SINGAPORE SUCH AS EZRA HOLDINGS AND EMAS CHIYODA SUBSEA HAVE FILED FOR BANKRUPTCY, HIGHLIGHTING THE DIRE STATE OF THE INDUSTRY
Emas Offshore says problems at Ezra Holdings are likely to adversely affect it
CONSOLIDATION EXPECTED
BUT BROWNFIELD PROJECTS AND SUBSEA SEGMENT COULD PICK UP
S
peaking at the 2017 Annual Offshore Support Journal Conference, Awards & Exhibition in February, Duncan Telfer, commercial director at Swire Pacific Offshore, told delegates that, although the offshore support vessel (OSV) market in Southeast Asia remains mired in recession, with owners declaring bankruptcy and consolidation on the cards, the market is at last showing signs of picking up. The Southeast Asian market is predominantly an anchor-handling tug/ supply (AHTS) vessel market with a low level of platform supply vessel (PSV) activity and an abundance of low value tonnage in the region, which has created oversupply. This has led to a high level of stacking of vessels in the region with, reportedly, 360 OSVs in layup. Utilisation rates for mobile offshore drilling units are down, drillships activity at around 21.4 per cent, jack-ups at 51.4 per cent and semi-subs at 28.1 per cent,
www.osjonline.com
Mr Telfer explained, and oil companies are looking to lock in low day rates for future term work supporting them. “Day rates continue to fall, but the rate of decrease in 2016 has slowed down,” said Mr Telfer. Even so, clients are still putting cost pressure on OSV operators, projects are being delayed and contract cancellations and day rate renegotiations have become commonplace. 2016 was another year of losses for most OSV operators. In addition, their results have been impacted by impairment losses due to the reduced profitability of vessels. This means that there is increased availability of vessels for sale, scrapping activity and cold stacking as owners look to reduce operational overheads. Banks are increasingly active in arresting, taking control of and selling vessels owned by OSV operators who are renegotiating with creditors and bondholders in refinancing efforts to survive the industry downturn. Looking at the situation in countries
in the region, Mr Telfer said Malaysia is a “saturated market” with strong competition from local players and increasingly strict local content requirements. Other factors affecting the market include the weakening of the Malaysian ringgit and a decision by Petronas to voluntarily reduce daily oil production by 20,000 barrels a day in 2017. “Oil operators continue to struggle amidst the industry downturn,” Mr Telfer said, noting that restructuring at Petronas has led to redundancies of around 1,000 positions. In Indonesia, stringent local content requirements apply, and the country is starting to disallow ‘bid then flag’ arrangements and enforce Indonesian rupiah-only contracts. There is fierce local competition. Indonesia has suspended OPEC membership after rejoining only around 12 months ago. One promising part of the market in the country is offshore platform decommissioning due to the age of many installations. In Brunei, oil production is expected to
Offshore Support Journal | May 2017
12 | AREA REPORT Southeast Asia
reduce by 4,000 barrels per day in 2017. “Without new discoveries, Brunei’s oil and gas reserves are expected to only last for another 21–24 years,” said Mr Telfer. “Most of the oil reserves in the Southwest Ampa field have been produced, even though it will remain a major gas source for many years.” Overall, he explained, Brunei is reducing reliance on the oil and gas industry and diversifying into areas including finance and infrastructure. In Myanmar, production is steady at existing offshore gas fields such as Yadana, Yetagun, Shwe and Zawtika. There were major gas discoveries by Woodside in Myanmar in 2016. The country has the highest level of exploration activity in the region as it is a fairly young market. A new Shipping Bill has been proposed for 2017 and may have an effect on local content regulations. Production from existing fields in Thailand is steady. KrisEnergy conducted a seismic acquisition programme in the Gulf of Thailand in 2016. Local content requirements give priority to Thai-flagged vessels In Vietnam, there is developmental drilling on the Tê Giác Trắng field (Block 161) and exploration drilling at Block 06.1 and 05-3/11. Here, OSV operators are required to contract through PTSC Marine. “The 2017/18 OSV orderbook shows 171 AHTS newbuilds and 177 PSV newbuilds,” said Mr Telfer. “This will increase the global fleet size by 10 per cent. OSV oversupply will persist in 2017. Newbuild deliveries continue to be postponed or cancelled, and as in 2016, actual delivery of newbuilds is likely to be only a small
portion of the orderbook.” As he noted, oil prices rebounded in the second half of 2016 due to oil producers’ pledge to reduce production. Even if oil prices remain in the US$55–60 range throughout 2017, oversupply of OSVs will likely still prevent charter rates from increasing. More insolvencies and consolidation should be expected in 2017, as companies’ financials start to be unsustainable, but the silver lining is a resumption of brownfield projects that is expected in 2017 and increased subsea activity in 2018. Wood Mackenzie expects exploration and production (E&P) spending to increase for the first time since 2014, and Hess, for example, has announced an 18 per cent budget increase for E&P spending in 2017. Perhaps the biggest news from the region recently was that Ezra Holdings Ltd, together with wholly owned subsidiaries Emas IT Solutions Pte Ltd and Ezra Marine Services Pte Ltd, hasfiled voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code. The company said it had filed in order to facilitate the financial restructuring of the Ezra Holdings Chapter 11 entities and, consequently, the group. In a statement, the company said, “The board commenced the Ezra Chapter 11 filing, which it believes to be in the best interest of all of the company’s stakeholders, to achieve a sustainable capital structure for the group and financial restructuring of the Ezra Chapter 11 entities through a transparent restructuring process under the
Ezra Holdings filed for bankruptcy in March 2017
Offshore Support Journal | May 2017
supervision of the US Bankruptcy Court. “The filing is intended to optimise the scope and extent of the restructuring options available and to protect the interests of all stakeholders of the companyfrom hostile actions that could harm the company and its stakeholders by diminishing the group’s value. “The moratorium afforded under the Ezra Chapter 11 filing stays claims against the Ezra Chapter 11 entities and enforcement actions against their assets.” In the filing, Ezra Holdings listed consolidated long-term assets with a value of US$1.3 billion and assets of $623 million for the fiscal year ended 31 August 2016. Ezra Holding’s 20 largest creditors without collateral securing their claims are said to be owed approximately US$607.6 million. DBS Group (DBS) and OverseaChinese Banking Corp (OCBC) are believed to be the company’s two largest creditors listed in the filing. They are also the two largest creditors of secured debt. In February, Emas Chiyoda Subsea, which is part owned by Ezra Holdings, was placed under bankruptcy, owing creditors around US$966 million. Ezra Holdings, which recently confirmed that it faced a winding-up order from VT Halter Marine due to a guarantee it provided to Emas Chiyoda Subsea, now faces a claim against it from another party. In a 12 March 2017 announcement, Ezra Holdings said a notice of termination dated 9 March had been issued to Lewek Champion Shipping Pte Ltd, a wholly owned subsidiary of the company, to terminate a bareboat charter forLewek Champion. The termination relates to an amended Barecon 2001 form dated 19 February 2014 between Lewek Champion Shipping Pte Ltd and Hai Jiang 1401 Pte Ltd, which is the owner of the vessel. The owner alleges that Lewek Champion Shipping has defaulted on a payment of US$1,582,000. Emas-AMC Pte Ltd, being the sub-lessee, which issued a manager’s undertaking dated 17 February 2014 in favour of the owner, has filed an application to the Singapore courts and an application pursuant to Chapter 11 of the US Bankruptcy Code. Emas Chiyoda Subsea Ltd, being the sub-sub-charterer of the vessel pursuant to a bareboat charter on a ‘back-to-back’ basis between Emas Chiyoda Subsea and sub-lessee and part of the consortium that contracted with Saudi Aramco for provision of offshore support services, has also filed, inter alia, an application to the Singapore
www.osjonline.com
Swire Pacific Offshore Operations (Pte) Ltd 300 Beach Road #15-01 The Concourse Singapore 199555 Tel: (65) 6309 3600 Email: info@swire.com.sg Co. Reg. No: 199804749H
www.swire.com.sg
STAYING ON COURSE TOWARDS MARINE EXCELLENCE A trusted name in the offshore marine industry, Swire Pacific Offshore has established itself as a leading solutions provider to the offshore oil and gas industry with a service network that spans across the globe. Feel free to chat with us and find out how we can value-add to your business.
Windfarm Installation
Subsea Operations
Marine Seismic Support
Emergency Response and Salvage Operations
NOR SHIPPING OSLO MAY 30-JUNE 2
2017
Visit our stand Booth B04-29
DR. FRIDTJOF NANSEN
www.gondan.com
Oceanographic and Research Vessel just delivered to the Havforskningsinstituttet (Norway)
Southeast Asia AREA REPORT | 15
courts and the US courts. The vessel was arrested by Huisman Equipment BV in Xiamen, China, in February 2017. The owner has also made a claim against the charterer, as charterer, and Ezra Holdings Ltd, as guarantor, to the bareboat charter, and demanded a payment of the termination sum of an aggregate US$194,499,500 within 15 days. Ezra Holdings said it has also been advised that Joshua James Taylor and Yit Chee Wah of FTI Consulting have been appointed by the owner as the joint receivers and managers of assets of the charterer under the agreement. Emas Offshore – which has several loans and charter hire liabilities secured by its parent company Ezra Holdings – says its future could be put at risk by the latter filing for bankruptcy. Referring to Ezra Holdings’ announcement, Emas Offshore said that, as of 30 November 2016, the group had an aggregate amount of approximately US$170 million owing to Ezra Holdings, of which US$125 million was subject to a deferred payment over a period of three years. In addition, the group has an aggregate of approximately US$566 million of loans owing to financial institutions, of which an aggregate of approximately US$242 million of loans are guaranteed or secured by securities provided by Ezra and an aggregate of approximately US$193 million of loans are jointly guaranteed or secured by securities provided by Ezra and the group. The Emas Offshore group also has substantial charter hire liabilities valued at approximately US$231million as at 30 November 2016, relating to charter party agreements entered into by the group of whichan aggregate of approximately US$119 million is guaranteed solely by Ezra and an aggregate of approximately US$58 million is jointly guaranteed by Ezra and the group. “The Ezra Chapter 11 filing may constitute events of default under the relevant facilities and/or the bank facilities and the charter party agreements, and the moratorium afforded under the Ezra Chapter 11 filing does not stay claims against the group in relation to these facilities and/ or bank facilities and charter party agreements guaranteed or secured by Ezra,” said Emas Offshore. Arising from the above, the Ezra Chapter 11 filing may have a negative impact on the group.” The company is therefore currently seeking advice on the Ezra Chapter 11
www.osjonline.com
Nam Cheong Limited says its auditors have cast doubt on its ability to continue as a going concern, with the group facing major liquidity hurdles
filing and assessing the impact of such filing on the group and on the group’s ongoing initiatives to refinance its financial obligations and liabilities and the procurement of additional working capital facilities. Nam Cheong Ltd says its auditors have cast doubt on its ability to continue as a going concern, with the group facing “major liquidity hurdles”. The company said its auditors, BDO LLP, included an “emphasis of matter with respect to the material uncertainty” related to a going concern in their report on financial statements for the group for the financial year ended 31 December 2016. BDO LLP said, “For the financial year ended 31 December 2016, the group experienced a significant decrease in revenue and incurred a net loss of approximately RM42,771,000 (US$9.6 million) due to deferment of the delivery of vessels that had been requested by several customers.The current downturn in the oil and gas industry may continue to add pressure to the group’s financial performance and its operating cash flow. “As at 31 December 2016, the group’s loans and borrowings that were classified as current amounted to RM948,720,000 of which RM278,566,000 pertained to medium-term notes that are due for repayment on 28 August 2017. These amounts exceeded the group’s cash and cash equivalents of RM162,618,000 as at 31 December 2016.”
In an early March 2017 report, DBS Group said of Nam Cheong, “With no new orders since March 2015, negative operating cash flow of RM291 million for FY16, a continuing trend of order cancellations and a still-oversupplied offshore support vessel market, the outlook remains bleak for Nam Cheong.” DBS said Nam Cheong has maturities of RM670 million of bank debt and three note maturities in FY17/18/19 of US$64/ US$53/US$143 million that would present “major liquidity hurdles”. These must be financed with a combination of cash from deliveries (which could total RM500–600 million across FY17/18, assuming no further cancellations) and additional drawdowns of credit facilities (of approximately RM800 million). “But there is risk to both these sources of cash,” said DBS, “as owners in general continue to push back delivery dates, and undrawn credit facilities are subject to lenders’ risk tolerance. “Shipbuilding activity remains slow; net losses of RM5.6 million were recorded in the fourth quarter of 2016. Core shipbuilding revenue was around RM40 million for the quarter – way below precrisis levels of circa RM200–500 million – and the orderbook is slowly being drawn down with no replenishment. The charter segment reported its sixth consecutive quarterly gross loss. Thus, we expect net losses to persist for Nam Cheong, as revenue is not sufficient to cover operating and finance costs.” OSJ
Offshore Support Journal | May 2017
PROBLEM -‐ WEATHER DOWNTIME COST OF OPERATIONS
SOLUTION -‐ (CSS) COMPACT SEMI SUB
NOW HAVING 2 YEARS IN SERVICE OPERATIONAL TRACK RECORD WITH TWO OIL MAJORS 65m LOA x 28m Beam DPS-‐2 with 6000kw of thrust 90 cabins -‐ 90-‐175 POB Gangway with elevator AHC Crane 5t @ 25m CSS ACCOMMODATOR THE NEW RANGE OF MOTION COMPENSATED GANGWAYS ARE PROVING VERY CAPABLE BUT THEY ARE ONLY AS GOOD AS THE VESSEL ON WHICH THEY ARE MOUNTED THE SOLUTION TO INCREASE GANGWAY UPTIME -‐ THE CSS MINI
MARINE ASSETS CORPORATION www.macoffshore.net
info@macoffshore.net
SPOT ON One of Fugro’s Satellite Positioning innovations is the SeastarTM G4 service. A combined GPS/GLONASS/BeiDou/Galileo positioning service that utilizes PPP technology, calculating orbit and clock corrections individually for all satellites, taking ionospheric and tropospheric errors into account. The SeastarTM G4 service uses all available satellites to produce a composite position ensuring a reliable, stable and accurate positioning for our offshore customers.
Beams App:
FUGRO seastar@fugro.com www.fugro.com/seastar
Middle East AREA REPORT | 17
OIL COMPANIES STILL TAKING A TOUGH LINE
ON RATES IN MIDDLE EAST The Middle East offshore support vessel market is sometimes cited as having come though the crisis in the offshore oil and gas industry better than others, but the reality is that vessel rates and utilisation levels remain severely depressed
S
ABOVE: With utilisation levels of 65-70 per cent the Middle East market is in better shape than some, but more than 50 vessels
www.osjonline.com
peaking at the 2017 Annual Offshore Support Journal Conference, Awards & Exhibition in London in February, Fazel A Fazelbhoy,* chief executive officer of Synergy Offshore, noted that national oil companies and international oil companies had been cutting back on exploration and production (E&P) spending for the last 36 months (2014, 2015 and 2016), but he expected that E&P spend will recover to 2014 levels – but not until at least a couple of years from now, probably longer. Against this background, he explained, there has been a 30 per cent decline in vessel utilisation in the Middle East, from a level of
around 90 per cent to 60 per cent. Rates for offshore support vessels in the region are down by 30 per cent since 2014, with key players such as Aramco asking offshore vessel owners for an average of 30 per cent discounts on existing contracts. Vessel values have also plunged by 30 per cent or more. In the Middle East, he explained, there are around 450 offshore support vessels (OSVs), of which 20–25 per cent – getting on for 100 vessels – are from the Southeast Asia region. “In the Middle East, the average utilisation level currently is 65–70,” Mr Fazelbhoy told delegates, “with three leading companies claiming utilisation
of in excess of 90 per cent. More than 50 vessels are stacked, and NPCC is in the process of redelivering more than 30 vessels.” He explained that rates in the region were not expected to recover until late 2018– 2019, and the forthcoming merger of Adma-Opco and Zadco is likely to further delay implementation of projects in 2017. Looking at the market in the Middle East state by state, Mr Fazelbhoy told delegates that Adma-Opco and Zadco both plan to increase production in the United Arab Emirates (UAE) from 600,000 barrels/day (bpd) and 650,000 bpd respectively to 1.0 million each by 2021, helping theUAE go from
Offshore Support Journal | May 2017
18 | AREA REPORT Middle East
2.85 million bpd to 3.5 million bpd. “The good news is that Zadco and Adma-Opco are pressing ahead with a number of projects,” he explained. “The bad news is that the Adma-Opco and Zadco merger will delay implementation, especially new projects.” In Saudi Arabia, Mr Fazelbhoy explained, there is growing interest in ‘inkingdom total value added’ or IKTVA with regard to long-term agreements (LTAs). “Aramco is going the LTA route with five EPC contractors – McDermott, Dynamic, Saipem, L&T/Emas and NPCC,” he explained. Upcoming projects in the region that will create opportunities for vessel owners include Marjan, and the extension of the existing field, with nine jackets
Fazel Fazelbhoy: “the oil majors are not done yet with re-negotiating rates downward”
live in 2019; Berri, and the extension to existing field, with eight jackets live in 2019; and Hasbah, which was awarded to L&T/Emas, which is due to be live in 2020. Expansions are planned at Safaniya, Marjan and Zuluf and are being tendered now. Other future projects include the Marjan, Safaniya and Zuluf decommissioning and replacement projects for a total of 10 platforms, plus pipelines, cables and umbilicals. In Qatar, projects include the Qatar Petroleum (QP) Bul Hanine redevelopment, where early production is expected in 2019, plus QP’s Bul Hanine FMB project being undertaken by Technip, for which full-scale engineering development is due to be completed this year. Another QP project, North Field Alpha, was awarded to McDermott and is due to
go live in 2018. Occidental’s Idd El Shargi North Dome Phase 5 project is at the planning stage and is due to be live in 2020. The RasGas flow assurance and looping project was also awarded to McDermott and is due to be live in 2017. “Overall,” Mr Fazelbhoy explained, “although Qatar has not been suffering as much as other oil economies, they have been brutal in their approach to cost reduction and have been holding reverse auctions.” Looking at what this kind of market has meant for offshore vessels, Mr Fazelbhoy said that, whereas a typical dynamic positioning class 2, 8,000 bhp, 110-tonne bollard pull anchor handler with accommodation for 26 might have garnered US$14,000/day, rates were
“K-SAT 03” SATURATION DIVING SYSTEM FOR SALE
MAIN COMPONENTS
PARTICULARS OF DIVING SYSTEM
NAME OF SYSTEM: K-SAT 03 TYPE: SATURATION DIVING SYSTEM CLASSIFICATION: ABS, CLASS NO: 11215806 BUILT: 2011, HALLIN MARINE SINGAPORE PTE LTD, SINGAPORE LOCATION: SINGAPORE
The Receivers appointed over the “K-SAT 03” Saturation Diving System (the “Diving System”) are inviting bids for the purchase of the Diving System from interested buyers. Bid forms are available for collection from the contact persons listed below. Interested buyers should submit their bid forms to Ernst & Young Solutions LLP at One Raffles Quay, North Tower, Level 18, 048583 Singapore to reach by no later than 3:00 p.m. on 16 May 2017, Tuesday. The bids must be submitted in United States Dollars together with a deposit of USD50,000 in local banker’s draft made in favour of ‘‘Swiber Atlantis Pte. Ltd. (Receivers Appointed over the Charged Assets)” and should be placed in a sealed envelope marked “Tender for K-SAT 03”. The deposit shall be returned to unsuccessful bidders. Bids not submitted in accordance with the above requirements may not be considered. The Diving System will be sold on an “as is where is” basis, and the sale shall further be on the “Conditions of Sale of the K-SAT 03 Saturation Diving System” available at request from the contact persons listed below. Particulars are given herein without warranty as to accuracy and interested parties should satisfy themselves of the Diving System’s particulars. Interested parties wishing to inspect the Diving System should contact the persons below by no later than 12:00pm on 15 May 2017, Monday. Inspection of the Diving System and provision of further information can be arranged by the contact persons.
CONTACT PERSONS: Ms Ling Sen Ming: e: sen-ming.ling@sg.ey.com; t: +65 6309 6367 Ms Ho May Kee: e: may.kee.ho@sg.ey.com; t: +65 6309 6118 Ms Angela Ee: e: angela.ee@sg.ey.com; t: +65 6309 6933 Mr Aaron Loh: e: aaron.loh@sg.ey.com; t: +65 6309 6105
• 9-man Twin Lock Deck Decompression Chamber with Transfer Under Pressure (TUP) Chamber • 3-man Diving Bell • Hydraulic Bell Handling System, consisting of main bell winch, guide wire winch, ‘A’ frame and hydraulically operated umbilical drive sheave • 12-man Hyperbaric Rescue Chamber (also serves as 6-man living chamber) and Launch & Recovery System • Life Support Machinery Container • Combined Saturation and Dive Control Container • Emergency Response Container with Life Support Package
Middle East AREA REPORT | 19
connections and then surplus and laid-up vessels from the Middle East, which are actively bidding for Iran offshore work. “The new dimension will be a premium for newer, more technologically sophisticated vessels that are affordable now due to the low utilisation levels and
day rates,” Mr Fazelbhoy said. However, the international oil companies have been the driver for newer and high tech vessels and are not yet active in the field. There could be immediate opportunities for liftboats, IMR vessels and multipurpose PSVs. However, payment challenges remain.” OSJ
*Fazel Fazelbhoy is chief executive officer of Synergy Offshore, a consulting firm providing strategic advice to industry and financial sector clients on offshore energy and marine developments as well as advice in support of corporate restructuring and mergers and acquisitions activity
n t a l ly
fr
ec
ke r
ts
envi
n d ly
TOUGH
e nm
ie
ro
Picture © Kees Torn
Visit us at Nor Shipping, Oslo, Norway, 30th May - 2nd June 2017
b
down more than a third to around US$9,000/day. “In the good old days, an AHTS 5150 was earning around US$12,000/day. Now they are earning US$6,000/ day for a DP2 unit and US$3,800–4,500 for a DP1 unit – that is down at least 50 per cent. A platform supply vessel of 80m length overall with 3,000 dwt and DP2 that was earning US$16,000 is now earning around US$7,000/day – that’s down 56 per cent. “The oil majors are not done yet with renegotiating rates downward on renewal,” Mr Fazelbhoy told delegates, noting that a recent contract for a DP2 anchor handler with 90 tonnes bollard pull that was originally contracted for US$13,000 renewed for US$8,000 after a Dutch auction. This particular vessel will be stuck on that rate for the next five years. “2017 will probably see further rate cuts and not much improvement in utilisation,” he told delegates. Turning to the Iranian market, which industry observers expect to pick up, Mr Fazelbhoy said everyone is desperate for good news from Iran, but unfortunately, Iran “will not be delivering any in a hurry”. No formal contracts have been signed yet, he explained, only memorandums of understanding, and new field development is probably at least two years away. “The immediate priority is upgrading existing infrastructure and upgrading efficiency from a level of less than 50 per cent to in excess of 70 per cent. “There is a need for inspection, maintenance and repair (IMR) for brownfield rejuvenation projects, but idle Iranian assets will go to work first, followed by UAE-based vessels with
pro du
c
Our proven rudder systems are the perfect choice for all types of ships. A tough working environment requires a sturdy, well-customised design combined with superb manoeuvring capabilities. Seasoned captains trust in Becker rudders for their reliability, safety and exceptional manoeuvrability. Right: Mærsk Laser AHTS • built 2010 • LOA 90.3 m • 266 t Bollard Pull 2 x Becker Flap Rudders
Manoeuvring Systems
Energy-Saving Devices
LNG Hybrid Concepts
www.becker-marine-systems.com
Premium care for your rigs
VISIT:
Preservation
Reactivation
Recertification
Saving money and maintenance cost
Providing full range of services and expertise at your request
of risers and large storage area & workshops
astander.es ı astican.es
QUALITY
HSE
EXPERTISE
A microwave position reference sensor with real time situational awareness
Real world conditions
What DP Operators currently see
• Radar suitable for the 500m zone • Combined positioning and radar Dashboard • Adds situational awareness to DP operator interface
Please visit
What DP Operators will see with Guidance Marine’s new RadaScan View System
• Confirms RadaScan responder locations on the Asset • Provides an early warning against the inadvertent moving of responders
www.guidance.eu.com/radascan-view for more information
Guidance Marine Ltd, 5 Tiber Way, Meridian Business Park, Leicester, LE19 1QP, UK Tel: + 44 116 229 2600 Email: sales@guidance.eu.com www.guidance.eu.com www.marine.direct
190-130mm Advert - RadaScan View (AW) V-2-0.indd 1
Supported by our worldwide support network and international offices in;
14/03/2016 13:50:00
South America AREA REPORT | 21
RENEWED ACTIVITY OFFSHORE SOUTH AMERICA
COULD BE 18-24 MONTHS AWAY AS A PRESENTATION AT THE 2017 ANNUAL OFFSHORE SUPPORT JOURNAL CONFERENCE, AWARDS & EXHIBITION MADE CLEAR, INCREASED DEMAND FOR SUPPORT VESSELS IN SOUTH AMERICA IS UNLIKELY IN THE SHORT TERM, ALTHOUGH LONGER-TERM A MORE STABLE POLITICAL SITUATION AND DEVELOPMENTS IN GUYANA COULD HELP CREATE DEMAND
T
he downturn in the offshore oil and gas industry has affected markets everywhere, including South American countries such as Brazil, Argentina, and Colombia and in the Falklands.
Brazil, the region’s most important oil province, has also been affected, but is a case apart for a number of reasons. Only a few years ago vessel owners’ expectations were high, but Brazil has become an especially challenging market for owners
for a number of reasons: the Laval Jato scandal has engulfed the industry and requirements for Brazilian domestic content have led to delays, higher costs and reduced efficiency. Once heralded as the offshore market of the future,
Brazil’s potential has not been realised, although the political winds are, at last, blowing in the direction of a more diverse and dynamic oil sector and changes to local content rules are coming into effect. Even so, Brazil remains a difficult place
Changes to local content rules could see demand pick up in Brazil, but international owners remain hamstrung by the peculiarities of the market
www.osjonline.com
Offshore Support Journal | May 2017
22 | AREA REPORT South America
for offshore vessel owners to do business, not least because of ‘blocking’ rules that have seen international vessel owners lose contracts and depart the region in droves. Speaking at the 2017 Annual Offshore Support Journal, Awards & Exhibition Conference, Inger-Louise Molvaer from shipbroker Westshore, explained that, as a result of the crisis in the industry, the Brazilian rig count has decline significantly since its March 2012 peak. There has also been a significant reduction in term charters fixed since 2013 and as term demand dropped, the spot market absorbed tonnage. There has also been a similar reduction in the number of firm days. “The exodus of vessels leaving Brazil started in 2014,” she told delegates at the conference. “Where once there was enough work for the foreign and Brazilian tonnage, now Brazilian ships take preference.” In the boom years before the crisis, many rigs were also contracted in Brazilian yards. A total of 29 rigs were planned originally, but only 17 have actually commenced construction and, of these, only a handful is expected to deliver. Despite this, large numbers of vessels, also contracted from Brazilian yards, are due to be delivered this year and next: Bram/Chouest has eight PSV 4500 platform supply vessels due to be delivered in 2017 and four AHTS 21000 anchor handlers due to be delivered in 2018; CBO has two PSV 4500s and six AHTS 18000s due to be delivered in 2017/18; Starnav has five PSV 4500s due to be delivered this year and next; and Wilson, Sons and Bravante are each due to take delivery of one PSV 4500 this year. Given the decline in demand and pressures faced by overseas owners, said Mrs Molvaer, there has been an “exodus” of foreign PSVs
Offshore Support Journal | May 2017
“To sum up, there are relatively few opportunities across South America for additional foreign vessels” INGER-LOUISE MOLVAER, WESTSHORE
and growing interest from international owners in the Brazilian special registry (REB). “Brazil was heavily reliant on foreign AHTS in the past, and there is now interest in the REB for anchor handlers too,” she explained. Looking ahead, Mrs Molvaer said she believes that newbuilds will replace foreign vessels but not add additional vessels to the overall size of the offshore vessel fleet in the country. She said Westshore expects that the overall size of the fleet will therefore be “stable” with the number of some vessel types expected to grow. “There will be few contract extensions after the conclusion of firm periods,” she told delegates “and REB vessels will have stronger chance of securing work – with the exception of PSVs. Rate levels are not expected to increase dramatically in the near future.” The only good news is that new players in Brazil’s pre-salt fields will open up the number of clients for OSVs going forward. Turning to Argentina, Mrs Molvaer said that, currently, there are no rigs drilling offshore Argentina. Total had a jack-up there up until mid2016. The national oil company (NOC) YPF is in talks with Statoil to study the potential of the country’s deepwater areas, and Chilean NOC ENAP has several interests offshore Argentina and has aspirations to develop these further. In terms of vessels, DOF and Siem Offshore have had most success in securing contracts offshore Argentina. Eirik Raude was on hire to Premier for work in the Falklands but was terminated at the start of 2016. Premier says it is working to secure a financing solution to move the project towards sanction. There is potential for more exploration work in the future from several operators, and political tensions have eased
over the past year, making it a more attractive area. In Colombia Repsol was due to drill a one-well programme in the second quarter of this year using Maersk Developer. Anadarko has the drillship Bolette Dolphin drilling currently. Other operators with potential drilling requirements for this year and 2018 include Ecopetrol, Repsol and Shell. Petrobras is also involved in Colombia and as of February was tendering for three PSVs for work commencing this year. However, few European OSVs have secured contracts offshore Colombia in the last few years, with the tonnage mainly coming from local or US owners. Guyana has suddenly become very much of interest to the offshore oil and gas industry. The drillship Stena Carron is approaching the end of a firm contract with ExxonMobil, who made the huge Liza discovery, which is now being fast-tracked for development. Mrs Molvaer said another rig could be brought in in 2019 for further drilling in the field. Other operators with potential drilling requirements include Anadarko and CGX Energy. Other operators have also shown an interest following the Liza discovery, including Repsol and Tullow. However, there are a limited number of OSVs working offshore Guyana at present. “To sum up, there are relatively few opportunities across South America for additional foreign vessels,” Mrs Molvaer told delegates. “Colombia has some activity in the near term but most drilling has been put on hold or pushed out to 2018 or 2019. A period of political stability and recent large finds mean future exploration and activity will happen, but not to any great extent before 2018 or 2019. OSJ
www.osjonline.com
www.astillerosbalenciaga.com email: balenciaga@astillerosbalenciaga.com tel: 34-943-862008 • fax: 34-943-862089
Making Way
Balenciaga 110613.indd 1
6/24/2013 2:06:46 PM
WORLD LEADER
IN ADVANCED TECHNOLOGY LIFESAVING SYSTEMS Norsafe offers the widest range of conventional lifeboats, free-fall lifeboats, rescue boats and davits in the market today. Our 24/7 service network provides maintenance from over 300 ports worldwide. With 113 years of experience in developing lifesaving systems for all types of ships and offshore installations - we define safety at sea. Visit www.norsafe.com to view our product range and download technical specifications.
Meet us at Nor-Shipping, Oslo 30 May - 2 June 2017 | Booth #C04-11
Independent ship designer since 1976
www.skipsteknisk.no
HAVNEVIK
Freedom to create
UNMANNED VESSELS | 25
Danish researchers float idea of ‘Autonomous clusters’ As highlighted in the April 2017 issue of OSJ and at the 2017 Annual Offshore Support Journal Conference, Awards & Exhibition, there is growing interest in unmanned vessels in many sectors of the shipping industry, including offshore
Unmanned offshore vessels could act as mother ships to other autonomous units and would not need accommodation
T
he potential of unmanned offshore vessels was examined and a pre-analysis of autonomous vessels conducted on behalf of the Danish Maritime Authority (DMA) by DTU Electro and DTU Management Engineering. Denmark’s minister for industry, business and financial affairs Brian Mikkelsen has asked the DMA to continue dialogue with the industry and users to clarify whether there are projects that could be launched in the near future in order to strengthen knowledge in the area and help put Denmark on the map when it comes to autonomous vessel technology. The pre-analysis focused
www.osjonline.com
primarily on smaller types of vessels engaged in near-coastal voyages, such as ferries, tugs, barges and offshore supply and service vessels for the offshore oil and gas industry and offshore windfarms. It also looked at the use of autonomous surface vessels with unmanned underwater and unmanned aerial systems that could carry out offshore inspections. The analysis pointed to several areas in which development projects and pilot projects would be beneficial. The report describes an autonomous service vessel with combined underwater and above-water inspection units. The authors of the report described an autonomous service vessel that could be
permanently present in an area and function as a mothership from which autonomous underwater vessels and airborne units could ‘tank up’ with energy and to which they would deliver data from inspections. “Autonomous underwater robots could perform regular inspections and return to an unmanned mothership to deliver video and other sensor signals from the inspection,” said the authors of the preanalysis. “Modular robot technology could undertake maintenance in the form of the replacement of units/ components, if needed. Airborne units could land on the mothership in order to be supplied with energy for
continued operation. In such a way, an autonomous cluster would not require contact with human beings other than reporting of inspection data and the receipt of instructions about inspection plans.” “An autonomous cluster would not only report data about the condition of installations but also about the surrounding marine environment. Oil spills could be detected quickly and it would be possible to continuously and intensively monitor the ecosystem,” they said. Other potential applications that the authors of the report identified were in connection with decommissioning offshore installations where, they
Offshore Support Journal | May 2017
26 | UNMANNED VESSELS
said, “there would be many inspection tasks”. Acting as a mothership to unmanned aerial systems would enable just this kind of autonomous cluster to monitor offshore wind turbines and detect corrosion or other problems prior to the despatch of maintenance personnel. The authors of the report noted the need for aerial units to comply with civil aviation regulations. As regards underwater units, similar regulation is not yet in place, but operational requirements and safety procedures would need to be adapted to meet existing requirements for the operation of remotely operated vehicles. Unmanned ships will be in operation by 2020, according to Kevin Daffey, Rolls-Royce’s director of engineering and technology. Speaking to OSJ during a briefing to reporters
in late March 2017, Mr Daffey predicted that, by that date, “there will be a commercially running unmanned vessel on an inland waterway somewhere”. That might be a ferry or a tug, he suggested. During the five years after that, there will be more such vessels, but “it will be 2025 and beyond before [unmanned] ocean-going” ships are in operation, he said. “We are confident about that.” It was clear from his remarks that smart shipping forms an integral part of Rolls-Royce’s future direction, and he announced that Rolls-Royce has signed a memorandum of understanding with the Technology Centre for Offshore and Marine, Singapore (TCOMS) to form a strategic partnership to develop smart ship technologies. The partners will undertake
research to develop what they described in a statement as fundamental technologies, such as smart sensing, digital twinning and integrated modelling. They believe these will be essential to the development of future marine data-based solutions. These developments will be applied to technology demonstrators to show how they can be used by specific ship types. Mr Daffey said the partnership will lead to demonstrator technology that will use sensors, data analytics and the ‘marine internet of things’ to make ships “more reliable, more efficient and more closely integrated into global supply chains generating cost savings and improving revenue generation”. Professor Chan Eng Soon, chief executive of TCOMS,
Carousels Chutes Complete deckspreads
Conceptual Design Naval Architecture Engineering Design Finite Element Analysis Installation Commissioning Project Management
said in the statement that the collaboration will lead to “innovative solutions in smart ship technologies and play a pivotal role in elevating Singapore’s position as a key hub for marine and offshore engineering research globally”. Rolls-Royce and Tampere University of Technology in Finland have announced an agreement to develop and test the technology to support systems necessary for autonomous navigation, enabling the first generation of autonomous ships. The partners will work towards developing and validating technologies using the university’s purpose-built autonomous ship simulator. Tampere University of Technology has extensive research expertise in intelligent machines and networked systems. The University’s
UNMANNED VESSELS | 27
research into autonomous systems looks at how huge quantities of data can be analysed, processed and transferred as well as signal processing and human machine interaction. The University already has extensive experience of researching autonomous control systems in other industries, most notably the mining and automotive sectors. Well known as a designer and builder of a range of offshore vessels, Damen Shipbuilding Group in The Netherlands is also working on unmanned vessels. Lucas Zaat, manager design and proposals, offshore, said Damen’s offshore department has worked on a conceptual design for an autonomous platform supply vessel (PSV). “It seems evident that, in the next decade, some sort of autonomy will be introduced in the marine industry,” he said. “Within the Damen portfolio, we see numerous opportunities, ranging from extended onboard automation up to fully autonomous ships, but these will not be overnight developments. We expect a phased development process starting with a leap into remote monitoring, gradually developing into more and more autonomous operation. Mr Zaat said the main challenges will not be the available technology but the infrastructure. “How will we deal with classification or with insurance if something goes wrong?” he said. “Presumably, on our way to autonomous design, some intermediate stage will produce an autonomous but limited crewed vessel.” Mr Zaat said Damen’s autonomous PSV is only a concept, which the company is using to study and map areas that need attention. He noted that most PSVs in the North Sea operate on predetermined routes from rig to rig over fairly small distances. One advantage Damen
sees in autonomous vessels is that they could eliminate the need for crew facilities, a superstructure and auxiliary machinery, leaving more space for payload, providing a safer operational environment and reducing build costs significantly. He cited a report from the North Sea Offshore
Authorities Forum (NSOAF) that showed that lifting and mechanical handling accounts for nearly half of fatalities in the North Sea. Dropped objects falling from cargo or cargo that crushes deck crew are all too frequent. “For this reason, we studied the benefits of a safe,
Proficient, professional & perfectly placed Offering comprehensive ship repair, maintenance & conversions in its three dry docks & deep water port.
economical and efficient PSV concept and explored how much of an improvement could be achieved, using one of Damen’s PSV 2500 vessels as an example. This baseline vessel would be fully autonomous. The result was that the vessel’s tank capacities could be enlarged, as could its deck area. OSJ
GIBDOCK MAIN WHARF ROAD, THE DOCKYARD, GIBRALTAR, GX11 1AA TELEPHONE +350 200 59400 FAX +350 200 44404 EMAIL MAIL@GIBDOCK.COM WEB WWW.GIBDOCK.COM
HYDRACraft Diving Daughtercraft System Unique Group’s Diving & Life Support
“The HYDRAcraft is certainly a superb work
division offers the HYDRACraft diving
platform. It helped us to get to some tight
daughtercraft, designed on key principles
spots which no other vessel would have ever
of safety and reliability, which includes an
been able to reach. Our clients have often
integrated three diver dive control station,
appreciated the versatility of the vessel and
an inspection co-ordinator station and gas
the effectiveness it enables us to achieve.”
storage.
Michael Johnson, Program Manager, Oceaneering.
The HYDRACraft diving daughtercraft is IMCA D040 / D015 complaint and can be customised to include launching davits, support craft, decompression chamber
Contact us at:
diving@uniquegroup.com
and support containers, as per client requirements.
UAE | UK | USA | South Africa | Netherlands | Singapore | India | Qatar | KSA
BRUNVOLL COMPLETE THRUSTER SYSTEMS Thruster Systems are our only business – our extensive experience and expertise is available to our customers
TRUSTED WORLD WIDE TUNNEL THRUSTERS
AZIMUTH THRUSTERS
LOWNOISE THRUSTERS
BRUNVOLL BRUNVOLL AS
-
6415 MOLDE
www.brunvoll.no
-
NORWAY
BRUCON THRUSTER CONTROL SYSTEMS
PROPULSION | 29
UNIQUE THRUSTERS
DEVELOPED FOR HEEREMA’S SEMI-SUBMERSIBLE HEAVY LIFTER The 2017 Annual Offshore Support Journal Conference, Awards & Exhibition saw a number of presentations from thruster manufacturers highlighting recent developments and new products, including some unique thrusters from Wärtsilä
W
ärtsilä Marine Solutions presented its new generation of retractable thrusters at the conference, of which eight examples have been supplied for Heerema’s new semisubmersible heavy-lift vessel, Sleipnir. Heerema was looking for a retractable thruster that could be maintained without drydocking. The dynamic positioning performance required of the thrusters meant a tilted shaft was required. No existing solutions met this requirement. Accurate positioning of the vessel will be ensured by eight 5,500kW Wärtsilä underwater mountable thrusters, four of which are also retractable. Wärtsilä developed the four forward retractable thrusters specifically for this project and has given them the type indication WST-65RU. They feature a unique combination of retractable and underwater mountable functionality. The thrusters installed at the aft of the vessel are WST-65U underwater mountable thrusters. The outboard parts of both types are completely interchangeable. The underwater demounting capability of all eight thrusters means that drydocking and the use of an underwater habitat is not required in order to exchange the thrusters. The thrusters are equipped with Wärtsilä Oceanguard antipollution face type seals, which have been selected primarily because of the challenging environments in which these
www.osjonline.com
Wärtsilä developed the thrusters for Heerema’s new semi-submersible crane vessel specifically for the project
thrusters will operate. Apart from maintenance/ overhaul by means of underwater thruster exchange, Heerema also needed the thrusters to retract quickly, with automated retraction/ deployment in less than 10 minutes. A high level of reliability and redundancy were essential as was ease of operation. The vessel has a speed of 11–12 knots with all eight thrusters in operation. Schottel also presented its new generation of environmentally friendly thrusters at the conference. Sales manager Joachim Müller presented the EcoPeller, which is optimised for efficiency and reduced fuel consumption, Leacon sealing system and Combi Drive designs. He described Leacon as a triple sealing system and an integrated alarm. It is DNV GL Clean Design certified. Rolls-Royce’s latest carbon
fibre Azipull 65 thruster could bring benefits to the tug and anchor-handling tug/supply shipbuilding market in the form of weight savings, the UK-based company believes. The Azipull Carbon 65 (AZP C65) steerable thruster is a low drag, high efficiency propulsion system that has been developed with course stability and low noise and vibration levels as key elements of the design. RollsRoyce says that, while the new product has been developed primarily for the superyacht market, it is also applicable to workboats, and the company is exploring opportunities in the tug and offshore vessel sectors. Gary Nutter, executive vice president for propulsion and engines, explained, “The unique challenge for this product and application was to make it significantly lighter, whilst retaining power output. Working with new materials and developing a
brand-new supply chain, we have managed to develop a unit weighing 2,800kg and delivering 2MW of power.” The propulsion unit will also require minimal maintenance, with routine preventative checks and maintenance instructions provided to operators. The shaft seals are replaceable when required, but no other major maintenance is required, the company claims. Among recent additions to the range of thrusters on the market is Steerprop’s CRP ECO product line and the new, compact Steerprop CRP ECO LM propulsor with integrated vertical permanent magnet (PM) motor. The LM model is said to offer reduced lifetime costs, improved fuel efficiency and low vibration and underwater noise levels, while its compact construction makes installation and maintenance easier and maximises onboard comfort. Steerprop has also recently launched a new generation of ducted azimuth propulsors with an upgraded design and improved technical features. The company claims that the new generation of Steerprop propulsors offers greater agility and endurance in a compact package, with a lighter-weight construction, cast steel housing and enhanced robustness. The unit is designed for hydrodynamic optimisation to achieve improved free-running efficiency and fuel economy, with a more slender body, a smaller hub ratio and a new high performance HJ4-nozzle design. The HJ4-nozzle guarantees superior bollard pull and allows optimal nozzle positioning. Traditional sacrificial anodes have been replaced with a new, non-flow disturbing shape cast anode. OSJ
Offshore Support Journal | May 2017
30 | RESCUE BOATS/DAUGHTER CRAFT
NEW DAUGHTER CRAFT DESIGN HAS A NUMBER OF ADVANTAGES A LEADING OWNER OF OFFSHORE SUPPORT VESSELS HAS BECOME THE FIRST CUSTOMER FOR MARITIME PARTNER’S NEWLY REDESIGNED RANGE OF RESCUE BOATS AND DAUGHTER CRAFT
A
s highlighted previously by OSJ, Maritime Partner in Norway recently redesigned its entire range of rescue boats and daughter craft, incorporating a new, modular, standardised design concept. Developed with assistance from Hareide Design, the new concept was revealed to Norwegian and international clients late last year The first boat from the company’s product range to make use of the new design will be an Alusafe 1200 fast rescue daughter craft (FRDC) for a well known Norwegian owner. Gisle Anderssen, a senior vice president at Maritime Partner, told OSJ that the new design concept would make its debut on an FRDC standby vessel that is about to enter a long-term charter with Norway’s state oil company Statoil.
“We have taken our new, modular, standardised design and incorporated a lot of feedback from customers,” said Mr Anderssen. “We have made the wheelhouse wider and more spacious, incorporated larger windows, enhanced the layout of the control console and enhanced the crew spaces. We have also taken steps to reduce the noise level in the wheelhouse.” Maritime Partner has also enhanced the hullform for the new FRDC, further improving seakeeping by lengthening the waterline length of the new unit and modifying the vee shape that forms the basis of the hull to enable the FRDC to take waves more easily. This particular version of the new unit will have Volvo Penta engines, although customers will later have the option of fitting the boat with
alternative units. Customers can also choose between two types of waterjet – for this particular unit, Namjet waterjets were selected because the FRDC needs a decent level of bollard pull in order to be able to tow oil spill response booms, if required. Mr Anderssen said Maritime Partner has received a lot of interest in the new designs from markets out of the offshore vessel space, including the military and para-military markets and passenger/leisure markets. Maritime Partner also recently entered the offshore wind market, with a contract from Spanish shipyard Astilleros Gondán for the delivery of four boats that will be stationed on two new service operation vessels (SOVs) working for Norwegian shipowner Østensjø Rederi.
The Alusafe 1200 FRDC will be the first example of Maritime Partner’s new, modular, standardised designs
The contract includes a total of four boats: two workboats and two fast rescue craft. The workboats will be used to transport technicians and cargo from the SOVs to wind turbines. They are of the Alusafe 1150 WF design, and the rescue boats are of Weedo 700 FRC design, one of Maritime Partner’s popular open boat designs from the offshore industry. “We have worked towards this market for about two years with a focus on developing designs together with operators in the industry. This is a strategically important market, and we are pleased to finally see the results of our efforts,” said Mr Anderssen. Maritime Partner will deliver one Alusafe 1150 WF and one FRC to each ship. The company says that, whilst developing the design, it focused on seaworthiness, manoeuvrability and operational reliability, while maintaining a high level of comfort for the technicians. The Alusafe 1150 WF will be equipped with Volvo Penta IPS propulsion, which should ensure that the boats have a high level of manoeuvrability and acceleration and are easy to service, when required. The first two units will be delivered by Maritime Partner in September 2017, and the next two will be delivered in May 2018. OSJ
www.osjonline.com
NO
HI
GH
RW
QU EGI AL AN IT Y
RESCUE BOATS
www.steerprop.com
THE AZIMUTH PROPULSION COMPANY
Steerprop Ltd., the leading azimuth propulsion expert for demanding applications - Combining experience and innovation for unsurpassed propulsive quality, reliability & efficiency, tailormade to customer needs. Options available for condition monitoring & remote service.
DAUGHTER CRAFTS & WORK BOATS
GALLEYS VISIT OUR BOOTHS:
CO5-14
PY 142
MARESAFETY.COM
Stand D04-28a
PROPER
PERFORMANCE
IN ALL CONDITIONS.
THE ALL NEW ALUSAFE 1200 FRDC Fast Rescue Daughter Craft
PLEASE VISIT US AT BOOT C04-030A
OFFSHORE SUPPORT
Maritime Partner has met and exceeded clients’ demands for more than 20 years. Recognised for quality and reliability, favoured by authorities and operators worldwide. As a preferred supplier of an unmatched range, we are pushing the boundaries for fast rescue craft and fast rescue daghter craft (FRC and FRDC).
MARITIME PARTNER
maritime-partner.com
Bloksma Box Cooler for Marine Industry
LONG TERM RELIABLE MACHINE COOLING SYSTEMS Bloksma Box Coolers ensure elimination of complete outboard secondary cooling water circuit on board. Furthermore it protects the sea-chest against galvanic corrosion by a coating covering all noble surfaces. www.kelvion.com
Rashid Behbudov | 70m Catamaran Fast Crew Boat Builder: Austal Operator: Caspian Marine Services
Incat Crowther E V E R E VO LV I N G
OPERATIONAL STUDIES
ROBUST, EFFICIENT AND VERSATILE OFFSHORE VESSELS
EVER IMPROVING
FUNCTIONAL DESIGN
www.incatcrowther.com PRODUCTION DESIGN
PROCUREMENT
CONSTRUCTION SUPPORT
THROUGH-LIFE SUPPORT
CONSULTING
CREWBOATS | 33
CREWBOAT BUILDER REINVENTS AND REINVIGORATES ITSELF Once a regional ferry operator and minor shipbuilder, Penguin International has become a highly successful builder of passenger ferries and mid-sized crewboats, as Rebecca Moore found when she interviewed its chief executive James Tham
S
ingapore’s publicly listed designer, builder, owner and operator of high speed workboats Penguin International has been on a journey over the past decade. It has transformed itself from a loss-making regional ferry business and a minor shipbuilder into a prolific builder of mid-sized crewboats, as well as a designer and builder of passenger ferries. Backed by a strong balance sheet with substantially more cash than debt and a globally recognised brand – Flex – Penguin has delivered more than 100 crewboats since 2006. Ranging in size from 25m to 50m, most of them were built for stock as part of an internally funded investment programme.
Reinvigoration of the business started when executive chairman Jeffrey Hing and managing director James Tham took over the leadership of Penguin in 2008. Mr Tham recalled, “We saw that Penguin was an undervalued company with a rich history and solid assets. It simply needed a bit of tender loving care to focus, nurture and grow it into the successful company that it deserved to be.” Under the new management team, which included finance director Joanna Tung, who started off as an accountant in the company in 2000 and defied the odds in a male-dominated industry, the improvements started to bear fruit. Mr Tham said that the sale of the regional ferry business, Penguin Ferry Services, in 2011 was a major milestone in the company’s transformation. The reinvention of Penguin was expedited by a shipyard that it already owned in Tuas on the southwestern tip of Singapore. Today, as well as designing and building crewboats and ferries for third-party shipowners, Penguin charters out its own Flex crewboats in Malaysia and Thailand and provides ferry transportation services within Singapore waters. “We usually own and operate what we design and build,” Mr Tham enthused. “This
SWIRE TAKES DELIVERY OF KESTREL Among the most recent deliveries to Swire Pacific Offshore is Pacific Kestrel, a 57m catamaran crewboat that was built byAustal Ships. The 40 knot vessel is capable of transporting 90 personnel plus cargo to offshore platforms in up to sea state 6. Pacific Kestrel has a large aft 200m2cargo deck with integrated structural mounts and onboard support systems for the fitment of an Ampelmann motion compensated gangway, facilitating the safe transfer of personnel to offshore platforms. The main deck cabin has individual
www.osjonline.com
reclining seats for 90 passengers with luggage racks and a medical treatment room. All accommodation spaces comply with MLC 96/ILO 92 guidelines. Making use of Incat Crowther’s semismall waterplane area twin hull, the vessel has a powertrain consisting of four MTU 16V4000 main engines, driving Hamilton HT810 waterjets.Pacific Kestrelmet its contractual loaded service speed of 40 knots during sea trials. It also has search and rescue capability with afast rescue craft and a chemical dispersant system for oil spill first-response capability.
Penguin decided to use its Singapore shipyard to build and repair crewboats and passenger ferries for third party owners as well as repairing its own fleet
sets us apart from pure builders and pure operators. As a builder, we understand the trials and tribulations of being a shipowner.” Mr Tham said that the company’s Singapore base and its heritage were a strong pull for attracting business. “We are a Singaporean company, born and bred. That alone is a competitive advantage. Singapore itself is a brand. It is known for honesty, quality and competitiveness.” Also of importance to the company has been its relationship with BMT Nigel Gee in the UK.Indeed, Penguin has enjoyed a good working relationship with BMT Nigel Gee over the past decade. Designed in partnership with BMT Nigel Gee, the Flex42X, Penguin’s latest crewboat, scores a number of industry firsts for a mid-sized crewboat. These include the fact that it is the world’s fastest triple-screw mid-sized crewboat powered by three conventional Caterpillar C32 ACERT main engines, and the world’s first Maritime Labour Convention certified mid-sized crewboat. The Flex-42X will eventually join Penguin’s product line in its built for stock programme. It is a 42m, 30 knot, triple-screw crewboat powered by three Caterpillar C32 ACERT main engines and has 70 business class reclining seats and two VIP cabins on the main deck, 110m2 cargo deck and two external fire-fighting monitors. OSJ
Offshore Support Journal | May 2017
OFFSHORE SOLUTIONS
OFFSHORE EXPRESS 70 LARGE CREW TRANSFER VESSEL RASHID BEHBUDOV CASPIAN MARINE SERVICES Design: Incat Crowther
OFFSHORE EXPRESS 45
YASAT & GHAGHA-1 ABU DHABI NATIONAL OIL COMPANY
SHIPS
SYSTEMS
SUPPORT
OFFSHORE EXPRESS 57 LARGE CREW TRANSFER VESSEL
PACIFIC KESTREL SWIRE PACIFIC OFFSHORE Design: Incat Crowther
DECK MACHINERY | 35
MOTION COMPENSATION CONTINUES TO ENHANCE DECK GEAR
N
ew applications of motion compensation systems seem to be appearing everywhere in the offshore vessel space. As highlighted elsewhere in this issue, a new geotechnical drillship, Freja, recently entered service with a heave compensated drilling system MacGregor won the Innovation of the Year award at the 2017 Annual Offshore Support Journal Conference, Awards & Exhibition in February for its 3D Motion Compensator (3DMC), a retrofit device designed to enhance the load-handling precision of offshore cranes. MacGregor’s award-winning technology compensates for the roll, pitch and heave motions of the vessel to minimise any movement of the load on a crane in relation to a fixed point in space. But the 3DMC isn’t the only such system developed by the company recently. It is also offering a crane compensation system for shipto-ship load transfers that extends the operating window for safe load transfers between offshore vessels. “This technology can offer considerable commercial advantages to the offshore industry,” said Ivar Fjermeros, senior sales manager, advanced offshore solutions. “MacGregor understands the complexity of ship-to-ship load transfers and the limitations imposed by unpredictable, nonsynchronised movements in a seaway. With the systems currently available, a crane’s capacity is effectively de-rated because of the conservative approach required to minimise risks associated with the relative
www.osjonline.com
MOTION COMPENSATION SYSTEMS ARE BEING APPLIED TO AN EVERWIDER RANGE OF DECK GEAR, FROM WINCHES AND CRANES TO DRILLING EQUIPMENT
movements of the vessels.” The new compensation system employs a motion reference unit on the deck of the secondary vessel. This transmits motion data to the crane on the primary vessel via a high speed redundant wireless link. Combining motion data from both vessels, the system calculates and applies the winch compensation necessary to minimise hook movement at the load-handling zone on the secondary vessel. The system has precise tension and position control for accurate load hook-on, pick-up landing and hook-off. Safety is much improved for the deck crew working in the load-handling zone. Load pick-up and landing is precise, fast and smooth. It allows the operator to employ a less conservative approach to calculating the maximum load that can be safely handled in any given sea state. For owners with existing MacGregor offshore cranes wishing to benefit from this new system, it can be retrofitted cost-effectively and can be used with other MacGregor crane advances. Another interesting
application of motion compensation is Barge Master’s solution for drilling from a floating barge (rather than a jack-up). “This is something that has never been done before and not been possible without Barge Master’s 3D motion compensation platform,” said the company, whose motion compensation technology is at the heart of a 3D compensated drill rig used recently on a project on an offshore windfarm carried out by contractor Boskalis. The water depth for the project and challenging soil conditions made a floating solution the preferred option for the drilling operation. A team of engineers from Boskalis and Barge Master developed a modular setup consisting of a standard barge outfitted with Barge Master’s T700 motion compensation platform. The stabilised platform accommodated the drill rig, which was extended over the aft of the barge, and a crawler crane. The entire setup was mobilised in just two weeks.
By compensating for the motion of the barge, drilling operations could continue throughout the winter, irrespective of waves and swell. The 70-tonne drill bit was precisely lowered and positioned by the 3D compensated crawler crane, and any swinging of the drill and drill pipe was eliminated. “This operation is a perfect example of the level of maturity that motion compensation technology has reached. Our system can operate 24/7,” said Martijn Koppert, CEO of Barge Master. As highlighted previously by OSJ, other potential applications of the BM-T700 include safe and efficient lifting to and from offshore structures – for instance, for the decommissioning of oil and gas platforms – and the system can also be used for well workovers and plugging and abandonment projects. “The BM-T700 can be mobilised on any kind of vessel and is efficiently transported in a container,” said Mr Koppert. OSJ
MacGregor’s motion compensation system for ship-to-ship transfers combines motion data from both vessels and applies the compensation necessary to minimise hook movement
Offshore Support Journal | May 2017
A Total Service Supplier
OEM Manufacturer and your service specialist for marine and offshore cranes, winches, hatch-covers, RoRo equipment and davits 1- and 5 yearly inspections I Davit certification I Repairs and maintenance I Spare parts I Fleet service agreements I Modification and conversion I Training and technical support I Global service network
www.ttsgroup.com/Services Former Brand Names:
Hamworthy - Hydralift - Kocks - Krupp Fördertechnik - Kvaerner Ships Equipment - LMG Maritime Hydraulics - Mongstad Engineering - NMF - Norlift - O&K - Velle Systemer - Vontell
Services_template_w brands _130x190.indd 1
18.04.2017 13:35:42
TA I L O R - M A D E C R A N E S H AT C H E S & D AV I T S Aukra Maritime AS is a supplier of innovative Davit solutions to the offshore market.
Nautnes, 6480 Aukra, Norway
+47 71 17 32 00 • post@aukramaritime.no • www.aukramaritime.no
RECENT DELIVERIES | 37
GEOTECHNICAL DRILLSHIP
CAN OUTPERFORM A JACK-UP
P
rimarily but not exclusively aimed at the fast-growing offshore wind market, the geotechnical drillship Freja is the result of a “strategic collaboration” between the engineering consultancy company Geo and NCT Offshore. The quality of a geotechnical investigation, including the samples and cores collected from the seabed, is crucial for the design and optimisation of the foundations used on an offshore windfarm. The type of foundation used influences construction cost and, ultimately, the cost of the electricity generated by an offshore windfarm. Also fitted out as a dynamic positioning class 2 (DP2) remotely operated vehicle (ROV) support ship, Freja has a drilling setup that is built around a specially designed active heave compensated work platform. As Geo’s marine survey manager Jens Brink Clausen explained to OSJ in an exclusive interview, offshore windfarms are moving into deeper water, and Geo has identified an opportunity to apply its geotechnical drilling expertise in that market and others like it. “Usually you need a large jack-up in deep water,” Mr Brink Clausen told OSJ, “but a jack-up is expensive and cannot quickly relocate from site to site. With a heave compensated drilling system on a vessel like Freja, you have all of the advantages of a jack-up in a compact, less expensive and very flexible platform. With our Geobor-S large diameter drilling system, you can use a floating platform to get high quality, large diameter cores and really good core samples, even with challenging seabed conditions.” The principle of the heave compensation system is that the entire drilling floor – including drill rig and drillers – is heave compensated and compensates for the movement of the ship. This means that the working deck is stationary, and the vessel follows the movements of the waves. The heave compensation system was developed by MacArtney and is designed
www.osjonline.com
Late 2016 saw Geo in Denmark introduce a geotechnical drillship to the market with a unique heave compensated drilling system to work in a significant wave height of up to 3m. MacArtney says the platform includes a roll compensating function compensating for the vessel’s roll by ± 7 degrees. Active heave compensation is achieved by four fast reacting, high performance winches mounted on the corner pillars. The winches are controlled by an integrated control system, which ensures that the complete platform is synchronised with the vessel’s dynamic positioning control system. “Being able to conduct drilling work from a stationary deck means that we are able to apply drilling techniques usually limited to onshore drilling,” Mr Brink Clausen told OSJ. “On conventional vessels, only the drill string itself is usually heave compensated.” Geo’s setup is designed and optimised to operate in water depths of 15–60m. The heave compensated setup on the vessel is very flexible and can undertake a range of technical services from high quality geotechnical drilling using the Geobor-S system to a range of cone penetration tests and vibrocore rigs. The vessel is
Geo believes that Freja is unique in having a heave-compensated drilling system
also optimised for a geophysical spread including sidescan sonar, sub-bottom profiler, magnetometer and hull-mounted multibeam echo sounder. This kind of drilling technique ensures much higher sample quality than is usually attainable with traditional geotechnical drillships, which apply the so called ‘piggy back’ approach. “This kind of multipurpose vessel will provide a cost-effective, flexible setup, which can be customised for individual projects,” Mr Brink Clausen explained. “Freja also has top-level stationkeeping capability and can undertake a wide range of projects ranging from largescale offshore drilling campaigns with core drilling or sampling, handled by the vessel’s onboard laboratory, to projects that only require shallow CPT and vibrocore. The cost structure is set up in such a way that it reflects the technical solution required.” Mr Brink Clausen said the alliance between Geo and NCT Offshore will strengthen both parties, as the companies’ services complement each other well. Geo has one of the industry’s longest track records in geotechnical site investigations for offshore wind projects. NCT Offshore operates the vessel as a platform for Geo’s geotechnical drilling and seabed equipment. Already at work in the offshore wind sector, Freja was recently mobilised to work for Vattenfall and has already undertaken projects on behalf of industry leaders such as Dong Energy. OSJ
38 | RECENT DELIVERIES
Finnish and Russian shipyards have a long history of collaboration – the latest example of that collaboration is a new icebreaking supply vessel for Sovcomflot
SAKHALIN II SUPPLY SHIP IS FIRST OF NEW QUARTET FOR SOVCOMFLOT
J
anuary 2017 saw a naming ceremony held for a new icebreaking platform supply vessel for Sovcomflot. The vessel, Gennadiy Nevelskoy, is destined to work on the Sakhalin II project under a long-term agreement with Sakhalin Energy and is the first of four ordered by the Russian company for the oil field. Gennadiy Nevelskoy has a deadweight of 3,000 tonnes. The other three ships are standby vessels with a smaller deadweight (2,000 tonnes). The Russian Maritime Register of Shipping has assigned them Icebreaker 6 ice class. The new vessel left the shipyard on its maiden voyage to Sakhalin Island on 5 March 2017 and is named after a famous explorer of the Russian Far East, Gennadiy Nevelskoy. Built according to the latest international standards for safe operation and protection of the environment, the design of all four vessels was developed by Arctech Helsinki Shipyard. The three standby vessels will have a slightly smaller deadweight than the first of the newbuilds but have the same icebreaking capacity and large accommodation capacity as Gennadiy Nevelskoy. All four vessels will be used for year-round delivery of supplies and consumables to offshore platforms, transporting personnel and for performing standby and ice management duties near the platforms. The vessels will also be outfitted for integrated environmental protection and rescue operations. With a length overall of 104m and breadth of 21m, Gennadiy Nevelskoy has a total installed power of 21 megawatts (MW) and propulsion of 13MW. This gives the new vessel a speed in 1.5m level ice of 3 knots. The vessel has a design draught of 7.60m, maximum draught
Offshore Support Journal | May 2017
of 7.90m and deadweight of 3,000 tonnes. It has lifesaving appliances for a total of 70 people and accommodation for 28 crew and 42 other personnel. It is classed by the Russian Maritime Register of Shipping and bears the class notation KM(*), Icebreaker6, AUT-1, OMBO, FF3WS, DYNPOS-2, ANTI-ICE, ECO, Winterization(-35), Supply Vessel, Oil Recovery Ship, Special Purpose Ship. Speaking at a naming ceremony for the vessels in January 2017, Sergey Frank, president and CEO of Sovcomflot, said Gennadiy Nevelskoy “enables us to strengthen Sovcomflot’s position as a global leader in the icebreaking supply vessel class.” Esko Mustamäki, CEO of Arctech Helsinki Shipyard, described the vessel as “technically a forerunner in Arctic shipbuilding” with an environmentally advanced design that fulfils the requirements of IMO Tier III. “We have also paid special attention to the underwater noise level caused by the ship,” said Mr Mustamäki. Alexey Rakhmanov, President of USC, which collaborated with Arctech Helsinki Shipyard to build the vessel, highlighted long-lasting ties between Russian and Finnish shipbuilders and noted that Russian specialists have collaborated with their Finnish counterparts in the construction of ice-class tankers and a range of vessels for the development of the Arctic. “We are learning icebreaking technologies from our partners, but at the same time, we contribute our own competences,” he said. “Gennadiy Nevelskoy continues our co-operation and carries on the glorious tradition of collaboration between the Russian and Finnish shipbuilding industries.” OSJ
www.osjonline.com
25-27 September 2017 Abu Dhabi National Exhibition Centre Abu Dhabi, UAE
www.seatradeoffshoremarine.com
Make sure you are part of the largest Workboat and Offshore Marine event outside of the USA Exhibit Now
Register for FREE Entry
Make this your opportunity to get in front of the right people, all under one roof.
5,175+
62
220
visitors
companies
represented countries
EXHIBITION CONFERENCE FORUMS NETWORKING ●
●
Gold Sponsor
Silver Sponsor
Official media
Go to www.linkedin.com and join Seatrade Maritime Events group for information and updates
Suporting media
Seatrade Maritime Events
@SeatradeME #SOMWME17
●
Suporting organisations
Specialists in the manufacture of structures and equipment used in the renewable energy, marine and offshore oil & gas industries, primarily for pipe, umbilical and cable laying. Since 2013 we have successfully manufactured and installed twenty six carousel systems (1500T to 7000T Capacity), with ancillary equipment including 15T & 30T tensioners, chutes and over-boarding systems.
2017 NEWS
Marine Fabricators Ltd have recently completed equipment supply & installation at Kleven Verft in Norway on behalf of MAATS Tech Ltd, on the CLV Victoria (formerly the ABB Victoria) for which we supplied two cable Carousels (7000t & 4500t Capacity), 2 No 45t Tensioners, 1 No Spooling system, loading arm & associated roller pathways/chutes & a Underbender. We are currently working for MAATS Tech Ltd on DEME’s new build multipurpose vessel ‘Living Stone’. Equipment was fabricated at our site on Teesside and shipped to Bilbao, where we are installing two 5000t capacity Cable carousels & associated equipment.
Bays 1-7, Unit 1, Haverton Hill Shipyard, Haverton Hill, Stockton-on-Tees TS23 1PZ t: +44 1642 565646 • f: +44 1642 565687 www.marinefabricators.co.uk
ENGINEERED COOLING SOLUTIONS.
Photo courtesy of Sanmar Shipyards
Nor Shipping (May 30-June 2) Visit us at Stand #D05-36
OVER 65 YEARS COOLING THE MARINE INDUSTRY R.W. Fernstrum is committed to providing long-lasting, quality cooling systems. Our sales and engineering team will work with you to custom design a solution that meets the needs of your vessel and operating conditions.
www.fernstrum.com + 906.863.5553 sales@fernstrum.com Menominee, MI USA
GRIDCOOLER® Keel Cooler
committed to the quality of the world fleet
WEKA Boxcooler®
We are committed to upholding the values of safety, security, and environmental protection. This is evidenced through the quality of our fleet and outstanding port State control record as the only major international flag to remain on the United States Coast Guard’s Qualship 21 roster for 13 consecutive years. Visit us at Booth D01-21 during Nor-Shipping 2017. International Registries (U.K.) Limited in affiliation with the Marshall Islands Maritime & Corporate Administrators
london@register-iri.com blog.register-iri.com www.register-iri.com
OPERATOR PROFILE | 41
OBS SPECIALIST GOES FROM STRENGTH TO STRENGTH
O
cean bottom seismic (OBS) specialist Magseis has reported the strongest quarter in its history with all-time high revenues and EBITDA. The final quarter of 2016 saw it awarded a contract by ConocoPhillips for a 4D seabed seismic survey in the North Sea. Production is progressing according to plan together with BGP on Saudi Aramco’s S-78 project. The company, which uses seabed sensors to provide clients with geophysical data, had revenue of US$20.0 million (US$5.5 million in the same period in 2015). It reported EBITDA of US$5.5 million (US$-6.3 million in 2015), EBIT of US$1.9 million (US$-10.8 million in 2015) and net income of US$0.1 million (US$-11.2 million in 2015). The company’s chief executive officer Idar Horstad said, “The fourth quarter of 2016 represents the first full quarter of production from our ongoing operations in the Red Sea. During the period, production efficiency has steadily increased and the financial results highlight the outlook for 2017 and provide a solid baseline for further growth. “This caps a year Magseis has made great progress towards our goal of becoming the industry’s leading provider of OBS data. We have conducted continuous multivessel operations, operated a rolling spread of more than
www.osjonline.com
Amid the gloom in the offshore service sector, there are few companies that are prospering, but one company that is, is Magseis, which specialises in ocean bottom seismic
Idar Horstad: “when challenges have arisen we have shown we can address them quickly”
4,000 nodes and provided seamless operations in areas with unparalleled variations in water depth, seabed topography and climatic conditions. “When challenges have arisen, we have shown we can address them quickly, and as a result, we are more confident than ever in the technical capability, efficiency and robustness of our system. “Our operational performance has continued into 2017, making it likely that the ongoing project will be completed on time. Based on feedback from our client, we are confident that the activity in the Red Sea will continue throughout 2017 and are excited by the potential in this region in the years ahead.” In December, Magseis secured a first contract for ConocoPhillips for a 4D monitoring survey in the North Sea. “This is a milestone for the company as we will start to operate two crews and a major step in our strategy to ‘work smarter together with our clients’ in order to reduce the cost of OBS data,” Mr Horstad said. “The operation will comprise of 3,000 new nodes deployed by a third-party remotely operated vehicle vessel to be chartered on a per-project basis, while all node handling will be performed onshore in a mobile containerised setup. The crew will require a limited increase in staff, and the required equipment is already in production. We
believe this offering holds great potential to make regular reservoir monitoring affordable for a wide range of fields, and we are currently pursuing several options for additional awards during 2017 and 2018. “As we have highlighted over the past few quarters, tender activity in the OBS segment has increased significantly, and awards for 2017 already suggest a year-on-year increase of more than 50 per cent from 2016 levels. Our industryleading technology and strong operating track record places Magseis in a unique position to capture a substantial share of the expected market growth. “The company is currently limited by its crew and node capacity and has therefore engaged ABG Sundal Collier and Arctic Securities as financial advisers to provide advice on the financing of additional capacity in order to expand our reach and ability to take on more projects.” As if to confirm the company’s bright outlook, Magseis recently entered into a letter of intent with an as yet unnamed provider of offshore vessels regarding a potential charter of a vessel. The agreement includes an option for the lease of seismic equipment. The company’s board said it will consider potential equipment financing in its evaluation of alternatives and make an announcement on the preferred financing strategy in due course. OSJ
Offshore Support Journal | May 2017
42 | IMCA NEWS
IMCA’S DESIGN DOCUMENTATION CONTINUES TO EVOLVE WHEN WORKING UNDERWATER, DIVERS DEPEND ON THEIR EQUIPMENT NOT JUST TO HELP THEM COMPLETE THEIR WORK, BUT TO KEEP THEM ALIVE IN AN OTHERWISE POTENTIALLY LETHAL ENVIRONMENT
D
iving system equipment failures have the potential to cause catastrophic accidents. Effective means of assuring the quality and reliability of all types of diving system equipment are therefore given the highest priority by diving contractors and their clients. This is where the International Marine Contractors Association’s (IMCA’s) Diving Equipment System Inspection Guidance Note (DESIGN) documents have proved to be invaluable. The first DESIGN document was produced in 1989 by IMCA’s predecessor organisation, the Association of Offshore Diving Contractors (AODC). This identified a common standard that could be applied by all parties during the inspection of diving systems. Initially intended for use in the UK sector of the North Sea, in the absence of other guidance, it became a standard assurance tool in many parts of the world. Since then the expanded DESIGN has become an internationally recognised suite of documents covering air diving systems, saturation diving systems, surface supplied
Offshore Support Journal | May 2017
mixed gas diving systems and mobile/portable surface supplied diving systems. Additionally, a DESIGN document caters for hyperbaric rescue facilities forming part of a hyperbaric evacuation system. DESIGN is an assurance tool for use on all diving systems, classed and unclassed, old and new, traditional and modern. A DESIGN document provides a template containing
Richard Benzie: “nearly a hundred specialists from across the offshore diving industry came together to have their say on DESIGN”
all information required to fully audit and confirm that a system possesses the appropriate equipment and layout for a safe diving operation, and can meet industry-agreed examination, test and certification requirements as set out in IMCA D018 Code of practice for the initial and periodic examination, testing and certification of diving plant and equipment. Commonly each diving system undergoes a comprehensive audit annually and DESIGN documents are kept up-todate, and available, for review and inspection by clients and others. Technological developments and changes to best practices mean ongoing review of the documents by IMCA’s dedicated workgroup is essential. “Regular readers of OSJ may recall that last November news appeared of our diving seminar being held to present and discuss proposed improvements to DESIGN,” said Richard Benzie, technical director at IMCA. “Nearly a hundred specialists from across the offshore diving industry came together to have their say on
the detailed content of the documents. The latest updates to the DESIGN suites are now being published, some having been the subject of detailed information notes.” Notable changes include: • simplification of the guidance on monitoring the deterioration in breaking force of diving bell/ basket hoist wire ropes, to bring DESIGN into line with the latest guidance from IMCA’s lifting and rigging management committee • clarification of the requirements for hyperbaric rescue unit (HRU) and life support package heating and cooling redundancy arrangements.The revised DESIGN makes it clear that appropriate HRU heating and cooling backup can be achieved in a number of ways • development of an IMCA D018 ‘Detail Sheet’ and DESIGN requirements, for lifting appliances and other equipment used in the recovery of an incapacitated saturation diver into a diving bell • addition of a new sub-section in IMCA D023 to deal with side-by-side twin basket single A-frame launch and recovery systems – not previously covered by DESIGN • modification of the text to permit diving contractors to choose for themselves the breathing gas mix to be used in diving basket emergency cylinders during nitrox diving operations • introduction of requirements for umbilical guides to be fitted to diving baskets and for those guides to be designed to allow the diver to free their umbilical, and themselves, from the guide, and from the basket in an emergency • text modification to permit divers to have control of the bell blow-down, providing the bell diving supervisor can take control of the blow-down in an emergency without relying on intervention from the occupants of the bell. OSJ
www.osjonline.com
FREE ACCESS TO TECHNICAL DOCUMENTATION FOR MARINE & OFFSHORE PROFESSIONALS
Take advantage of the Maritime Technology Knowledge Bank. • A unique, free to access resource for the global shipping industry • Access whitepapers and technical documentation covering every aspect of maritime technology, equipment and new products.
www.osjonline.com/knowledgebank
www.osbit.com
Bespoke offshore solutions delivered On Spec, Budget and In Time We design and build quality, cost-effective systems for a range of applications. Whatever your engineering need, we’ll take your problems and own them until we solve them. It’s as simple as that.
Contact us: www.osbit.com +44 (0) 1434 682 505
Subsea Innovation Award Winner
Osbit Limited, Broomhaugh House,
2017
Riding Mill, Northumberland, NE44 6AW UK
360
o
THE POWER
TO TURN YOUR WORLD
A thruster by Veth Propulsion. A typical Dutch product. The end result is robust, powerful and inspired by your specific needs.
T +3178 615 22 66 www.vethpropulsion.com
BEST OF THE WEB | 45
BEST OF THE WEB
osjonline.com
Norwegian mega-merger is a done deal The merger between Solstad, Farstad and Deep Sea Supply has been completed. Statutory merger plans were approved and signed by the boards of Solstad, Farstad, Deep Sea Supply and
Solstad’s subsidiaries, into which Farstad and Deep Sea Supply will be merged, on 24 March 2017. http://bit.ly/2nkiPB4
Solstad (one of whose vessels is shown here) has completed its merger with Farstad and Deep Sea Supply
Bourbon reaches agreement with creditors Bourbon says it has reached “a sustainable reorganisation” of the major part of its debt, a sum amounting to €910.8 million. The company has signed an agreement with its financial partners for the rescheduling of the maturities of a large part of its financial debt. The main points of the agreement are that, of long-term and medium-term debt totalling €692 million, €365 million of repayments due between 2016 and 2018 have been rescheduled and reduced to an amount of €63 million, which will not be repayable until 2018. The remainder of the debt, €629 million, will be repaid progressively between 2019 and 2025. http://bit.ly/2lDtGXw
450 offshore vessels to be delivered this year, claims VesselsValue VesselsValue, the online vessel valuation and maritime/offshore data provider, says there are 450 offshore support vessels of various types to be delivered in 2017, in additional to 15 that have already been delivered, bringing the total number of vessels to 465.
VesselsValue says the number of newbuilds delivered into the already hugely over-supplied offshore vessel market will fall steeply next year, with only six ships due to be delivered in 2018. “2017 will be a record year for the
Maersk Supply Service wins work outside OSV sector Offshore vessel owner Maersk Supply Service is to partner with DeepGreen Resources to recover polymetallic nodules from the Clarion Clipperton Zone of the Pacific Ocean. DeepGreen is advancing the NORI Area D project through its wholly owned subsidiary Nauru Ocean Resources Inc (NORI). The NORI D project is conducted with the Republic of Nauru,
www.osjonline.com
and advancing the project involves completion of key environmental and engineering milestones. As part of the NORI D project, Maersk Supply Service has committed one anchor handler and one subsea support vessel for five marine campaigns during 2017 through 2019. http://bit.ly/2nMcf7T
number of anchor- handling tugs (AHTs), anchor- handling tug/ supply (AHTS) vessels and platform supply vessels (PSVs) scheduled for delivery,” said VesselsValue. http://bit.ly/2mdouIj
Harvey Gulf suffers ratings downgrade Moody’s Investors Service (Moody’s) has downgraded Harvey Gulf International Marine Corp’s Corporate Family Rating (CFR) to Caa3 from Caa2, Probability of Default Rating (PDR) to Ca-PD from Caa3-PD, and senior secured term and revolving credit facility rating to Caa3 from Caa2. The outlook ›››
Offshore Support Journal | May 2017
46 | BEST OF THE WEB
››› remains negative. “Harvey Gulf’s downgrade to Caa3 reflects its escalating financial leverage and weak liquidity,” said Moody’s. “Although Harvey Gulf is relatively better positioned in its peer group with a moderate portion of its utilisation coming from firm contracts through 2017 and beyond, its debt to EBITDA ratio by year-end 2017 will be nearly 10x (per Moody’s calculations) and will worsen through 2018. Given the anaemic offshore activity and oversupply of the OSVs, Harvey Gulf’s current utilisation and day rates for the non-contracted vessels operating in the spot market are not expected to improve through 2017.” http://bit.ly/2mdouIj
CGG and Eidesvik to establish new shipowning company CGG has agreed in principle with its longstanding partner Eidesvik and its Nordic lenders to establish a new ownership set-up for its operated fleet. The new set-up is based on the creation of a new company that will own five vessels currently owned by CGG and cold-stacked (Geo Coral, Geo Caribbean, Geo Celtic, CGG Alize and Oceanic Challenger), as well as the two vessels co-owned by CGG and Eidesvik (Oceanic Vega and Oceanic Sirius). The company, to be jointly owned by CGG and Eidesvik in equal parts, will also hold all the outstanding debt related to those vessels and should be operational at the beginning of the second quarter of 2017. CGG will continue to charter Oceanic Vega and Oceanic Sirius from the new company and will charter Geo Coral (from the second quarter 2017 onwards), Geo Caribbean and Geo Celtic vessels, as the charters of other vessels it currently operates expire. CGG will thus continue operating a five 3D vessel fleet with the same maritime and seismic operational management. CGG will thus continue operating a five 3D vessel fleet with the same maritime and seismic operational management. http://bit.ly/2otDjVG
www.osjonline.com
Subsea 7 completes acquisition of Seaway Subsea 7 has completed the acquisition from K&S Baltic Offshore (Cyprus) Limited of its 50 per cent shareholding in Seaway Heavy Lifting. Following signing and completion, after close of
business on 10 March 2017, Seaway Heavy Lifting and its subsidiaries became wholly- owned by Subsea 7. http://bit.ly/2nf8RSn
Waiver expires but Tidewater keeps talking US-based offshore vessel owner Tidewater says its latest waiver of covenant default from its lenders and noteholders expired on 27 March 2017, without a renewal being sought by the company. Jeff Platt, president and chief executive officer of the company, said: “Negotiations with our lenders and noteholders are progressing well, with a significant number of commercial points negotiated and, to our knowledge, resolved.
“However, work remains to resolve a small number of issues and to obtain the approval of our board of directors and final approval from the various financial institutions. In the meantime, while we press forward with our lender and noteholder groups in an effort to bring our negotiations to a successful conclusion, it is business as usual for the company.” http://bit.ly/2nfRzQK
Subsea vessel demand set to pick up, led by IMR sector Analyst Douglas Westwood believes that demand for subsea vessels will pick up, led by demand for inspection, maintenance and repair. DW says forecast expenditure in the sector is set to grow at a modest 6 per cent CAGR, following an initial decline of 50 per cent over the 2014-2016 period. It says growth in vessel day demand will
be driven by the inspection maintenance and repair (IMR) sector, as further delays in maintenance and repairs could compromise the integrity of production facilities. It says Southeast Asia, the US and West Africa will account for 52 per cent of forecast IMR expenditure. http://bit.ly/2otGblg
To view more whitepapers visit the Knowledge Bank at www.osjonline.com
www.osjonline.com/s/knowledgebank
To upload a whitepaper to the Knowledge Bank, please email Steve Edwards at steve.edwards@rivieramm.com
Editor’s selection:
Editor’s comment:
Fuel saving potential by measuring propeller thrust and hull resistance
This paper presents the possibilities offered by the full scale measurement of propeller thrust (and torque), to identify fuel saving potential and emission reductions. Via full scale measurements of propeller thrust and torque, in relation to other parameters like ship speed, the change in propeller efficiency and the hull resistance can be determined over time.
Measuring the full scale performance of a propeller and bulbous bow retrofit via propeller thrust measurements.
Offshore Support Journal | May 2017
MARINE OPPORTUNITIES As the world changes, demand for products and services evolves with it
ADVENTURE Luxury expedition cruise vessels designed for adventures in polar and exotic environments
SECURITY Vessels built to secure and monitor seas and coastal waters
SEAFOOD ENERGY
Bespoke vessels for fisheries and the aquaculture industries designed for efficiency and sustainability
A broad range of specialized vessels for oil and gas and emerging offshore energy industries
VARD has both contributed and adapted to these changes. We see that also in the future, opportunities will be profoundly connected to the sea that covers two-thirds of our planet. As before, we will take advantage of these opportunities, in close cooperation with ship owners, operators and business partners. VARD’s research and development, innovative design, equipment and solutions, and shipbuilding of the highest quality, contribute to significant improvements in safety, sustainability and performance for our customers and end-users. While remaining the global leader in the design, build and maintenance of vessels and systems for the Energy sector, VARD also continues to grow its presence in the areas we call Adventure, Security and Seafood.
www.vard.com
Francois Marine is the specialist in marine and offshore supplies to drilling rigs, offshore platforms, deep-sea vessels, tankers and bulk carriers, since 1988. Our division, Francois Offshore Catering is dedicated to provide premier offshore catering and facilities management in worldwide locations.
www.francoismarine.com
Contact us at marketing@francoismarine.com
Marine & Offshore Supplies
Logistics & Supply Chain Management
Offshore Catering & Facilities Management
Sales & Rental of BSL Offshore Containers (certified to DNV 2.7-1)
Established in 1986, Austen Maritime has been the one-stop ship service provider offering an extensive range of ship agency services, payroll services, project management, and in-country support for expatriate clients in the marine and offshore industry.
www.austen.com.sg
Contact us at marketing@austen.com.sg
Ship Agency
Payroll Services
Project Management
• Moving to our 126,000 sq ft design-and-build office complex and warehouse in July 2017 • Modern warehouse facility to hold stock inventory, manage and consolidate ship stores, logistics supply chain and freight forwarding • New cold storage and chiller facilities
Address: 30 Pandan Road, Singapore 609277 SERVING YOU WORLDWIDE
VESSEL NEWS | 49
Farstad takes delivery of construction/IMR vessel Farstad Shipping took delivery of the light construction/ inspection, maintenance and repair (IMR) vessel Far Superior (Vard Design 3 17 design) from Vard Group on 8 March 2017. Construction was undertaken by Vard Vung Tau in Vietnam, and the vessel will commence work under a longterm framework agreement with TechnipFMC Norge for a firm period of five years and up to five years options. Far Superior was purposebuilt for TechnipFMC Norge to conduct light construction work, IMR and other subsearelated activities in up to 3,000m of water. The vessel has an overall length of 98.1m, beam of 21.5m and deck area of 875m². Far Superior has an active heave compensated (AHC) AHC offshore crane with
Far Superior was purpose-built for TechnipFMC Norge
lifting capacity of 150 tonnes, two Work-class remotely operated vehicles (ROVs) from Oceaneering and accommodation for 85 people. Long-term financing for the
Deep Explorer starts trials Technip’s newbuild diving support vessel (DSV) Deep Explorer was due to depart for manned trials offshore Bergen, Norway, as this issue went to press. The vessel was named in November 2016. The vessel hull was built by Vard Tulcea shipyard in Romania, and then towed to Vard Langsten in Norway
for equipment outfitting and commissioning. It has a 24-person man twin- bell saturated diving system rated to 350m. The diving system was designed, built and commissioned by JFD, part of James Fisher and Sons Plc. Deep Explorer is a DP3 class DSV, purpose-designed
vessel was arranged by Danske Bank, DNB, GIEK, Sparebanken Møre and Swedbank, with funding provided by Eksportkreditt Norge AS. DNV GL’s ECO Insight
(fleet performance management) computations also show how much resistance is added over time due to hull fouling. The portal further provides customers.
and certified for subsea projects in the demanding North Sea and Canadian markets. Technip describes the vessel as “the most modern and versatile DSV in the world,” thanks to its latest technology diving control system, 400- tonne box boom crane, large deck area, working moonpool and workclass ROVs. Deep Explorer is capable of working globally on diving and
subsea construction projects, even in extreme weather conditions. The ship is due to commence operational duties in 2017.
Atlantic Towing’s first PSV 5000 arrives in Canada Atlantic Towing’s first PSV 5000 has been delivered to the company at its home base in St Johns, Newfoundland. The vessel is one of four of Damen design, three
www.osjonline.com
being PSV 5000s and one vessel specified for IMR inspection, maintenance and repair work. Atlantic Towing will mobilise all four vessels in
North Atlantic oil fields off the Canadian coast. The fourth vessel will have a 100- tonne AHC active heave compensated crane intended for subsea operations.
Harvey Gulf takes delivery of subsea vessel Harvey Gulf International Marine in the US says the company is preparing to take delivery of the USflagged, Special Purpose Ship Harvey Sub-Sea. The vessel is equipped with a 250- tonne AHC knuckleboom crane and has accommodation for 150 people. OSJ
Offshore Support Journal | May 2017
50 | SAFETY FLASHES
EMERGENCY FIRE PUMP COULD NOT BE STARTED FROM THE BRIDGE The International Marine Contractors Association (IMCA) regularly publishes safety flashes summarising safety matters and incidents, allowing wider dissemination of lessons learned from them, a recent example of which is reproduced here
NEAR MISS: EMERGENCY FIRE PUMP COULD NOT BE STARTED FROM THE BRIDGE
A member has reported a near miss incident in which it was discovered that an emergency fire pump could not be started from the bridge. The discovery was made during a fire drill exercise on a vessel. The master of the vessel in question immediately informed the chief engineer. The chief engineer took action and noticed that the emergency fire pump main switch in the engineroom was switched to local control. He switched it from local control to bridge remote and informed the bridge to start again. On this attempt, it was started successfully and came on line. The company’s investigation noted the following. What went wrong? The vessel’s emergency fire pump main control switch in the engine control room was switched to local control instead of remote/bridge control. This meant that the pump could not have been started from the bridge. Stop work authority (safety observation) was not properly used. The chief engineer confirmed that, when he had joined the vessel, he had found the main switch on local control but did nothing to correct it. Existing company procedures were not followed by the master or the chief engineer for monthly and weekly checks of this equipment. The item ‘Run the emergency fire pump on weekly basis and ensure that it is capable of supplying water under pressure to two charged fire hoses’ was marked as completed. There was a failure of communication. The fire drill scenario was particularly highlighted to the chief engineer, including the fact that, during the fire drill, it would be required to start the pump from the bridge. It was obviously understood, but order and procedures were not followed.
ACTIONS
The chief engineer is to ensure that the main switch in the engineroom is always stationed on bridge remote control. A sign or notice to this effect to be posted in the engineroom to remind engineers to always leave the switch on bridge remote control.
LESSONS LEARNED
Ask questions, be willing to exercise the stop work authority; don’t assume it’s all just business as usual. Drills and exercises exist for a reason – treat them seriously and guard against complacency. Ensure that critical equipment checklists and tests are thoroughly carried out for real, not just ticked off. Handovers at crew change and shift should be comprehensive and thorough, with a written record, and should cover all vital areas of concern.
Offshore Support Journal | May 2017
Vroon Offshore to sponsor OSJ safety award Started in early 2014, Vroon’s ‘Leaders in Safety Programme’ is now entering its fourth year, and the success of this classleading behavioural safety initiative – which has been rolled out across the Vroon organisation and its entire fleet – has helped Vroon Offshore Services set new standards when it comes to safety. With the development of the Leaders in Safety programme and resulting improvements in the safety culture at the company, Vroon is keen to share its safety message with a wider audience and has therefore agreed to sponsor a new OSJ ‘Safety Award.’ This will be presented for the first time at the awards ceremony at the 2018 Offshore Support Journal Conference, Awards & Exhibition to a company, person, project or product that has made a significant impact on safety. “The first two phases of the programme concentrated on intervention and awareness, with practical learning techniques,” Evert Maandag, group head of QHSE explained. “It has been a great success, not only leading to a significant reduction in injuries, but also an increase in safety observations and interventions. We are now working on phase three, which will continue the intervention and awareness themes. This phase will introduce new learning techniques that are based on real life case studies and incidents, all put together in handy mini-packs which can easily be taken on board company vessels.” As part of the Leaders in Safety programme, Vroon organises an annual company safety day known as ‘Vroon24.’ During the event, safety is celebrated on board all of the company’s vessels, offices and newbuilding site offices worldwide. The results of these Vroon24 safety days can be seen on the Vroon Group YouTube page: Vroon24 – 2015 movie: https://youtu.be/VZDQXcdPPWI; Vroon24 – 2016 movie: https://youtu.be/WvJQRfmDuPQ. Phase 3 will reinforce leadership from the top with a personal video message from Coco Vroon, Vroon Group’s managing director. “It’s important that leadership in safety starts at the top and sets safety culture and expectations throughout the organisation,” said Craig Harvie, managing director of Vroon Offshore Services in Aberdeen. “The Leaders in Safety programme not only demonstrates our commitment to the safety and wellbeing of our employees, it also shows the safety commitment we have to our customers.” OSJ
www.osjonline.com
THE WORLD LEADING MARITIME EVENT WEEK
Get a big-picture view on the future as top leaders present and debate the key issues at Nor-Shipping’s signature event
Gain insight at the conference that brings together the ocean, energy and shipping sectors for some hard talk.
Transformative leadership for industry change
Brazilian economic outlook and the transition of the maritime/offshore industry
Africa Redifined - a continent of blue opportunities
Asia as global growth engine
Main sponsor:
Leading sponsors:
Organizer:
Partner:
52 | MARKET DATA
Statistics & trends Compiled using data and graphs provided by Seabrokers’ monthly market report Seabreeze
NORTH SEA DEPARTURES AND ARRIVALS
NORTH SEA AVERAGE RATES: MARCH 2017
DEPARTURES: Vessels that have recently left or are due to leave the North Sea spot market
CATEGORY
AVERAGE RATE MAR 2017
AVERAGE RATE MAR 2016
% CHANGE
Carlo Martello
supply duties PSVs <900m2
£7,794
£4,183
86%
supply duties PSVs >900m2
£8,126
£4,104
98%
supply duties AHTS <18,000 bhp
£33,270
£19,273
73%
supply duties AHTS >18,000 bhp
£33,182
£15,674
112%
Central America
Pacific Champion
South America
Siem Garnet
West Africa
ARRIVALS: Vessels that have recently arrived or are due to arrive on the North Sea spot market Alp Forward
Ex Mediterranean
Maersk Master
Newbuild
Skandi Flora
Ex Canada
NORTH SEA SPOT AVERAGE UTILISATION: MARCH 2017 MONTH
MED LARGE PSV PSV
MED AHTS
NORTH SEA AVERAGE RATES: MARCH 2017
LARGE AHTS
Mar 2017
69%
87%
65%
78%
Feb 2017
78%
82%
30%
53%
Jan 2017
73%
77%
22%
59%
Dec 2016
62%
85%
28%
31%
Nov 2016
58%
86%
28%
31%
Oct 2016
66%
76%
42%
50%
CATEGORY
MINIMUM
MAXIMUM
supply duties PSVs <900m2
£4,800
£16,660
supply duties PSVs >900m2
£4,000
£17,136
supply duties AHTS <18,000 bhp
£12,000
£70,000
supply duties AHTS >18,000 bhp
£9,520
£65,000
OSVs RECENTLY DELIVERED VESSEL
DESIGN
OWNER/MANAGER
COMMITMENT
Atlantic Griffon
Damen PSV 5000
Atlantic Towing
Canada
Atlantic Heron
Damen PSV 5000
Atlantic Towing
Canada
Atlantic Strike
Damen PSV 5000
Atlantic Towing
Canada
Bravante II
Rolls Royce UT 775 SE PSV
Bravante Group
South America
Maersk Master
Salt 200 AHTS
Maersk Supply Service
North Sea
Paul A. Sacuta
Damen PSV 5000 IMR
Atlantic Towing
Canada
Offshore Support Journal | May 2017
www.osjonline.com
MARKET DATA | 53
DAILY AVAILABILITY: MARCH 2017 PSV 2017
PSV 2016
AHTS 2017
AHTS 2016
26
LEFT: compared with the same period in 2016, PSV and AHTS availability has declined BELOW LEFT: Brent crude has remained in a range around US$50-55
24 22 20 18 16 14 12 10 8 6 4 2 0
1
2
3 4
5 6 7
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
OIL PRICE VERSUS RIG UTILISATION $60
100%
$55
90% 82.3% 78.6%
80% 69.2%
70%
68.2%
77.1%
68.0%
75.1%
66.3%
74.3%
74.8%
77.6%
78.4%
76.8%
76.0%
74.4%
75.6%
76.2%
$50 $45
64.6% 60.5% 57.4%
60% $39.07
$42.25
$47.13
$48.48
$46.14 38.8%
39.5%
37.8%
36.8%
36.0%
35.4%
$46.19
35.1%
$49.73
35.2%
$40
55.0%
$45.07
50% 40%
57.7%
$46.44
35.1%
51.6%
52.3%
53.3%
53.0%
$54.07
$54.89
$55.49
$52.53
33.5%
32.8%
33.4%
31.7%
$35 $30
30%
$25 Mar 16 Apr 16 May 16 Jun 16
Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17
average Brent Crude US$/Bbl
Northwest Europe rig utilisation
South America rig utilisation
US Gulf rig utilisation
NORTH SEA AVERAGE ANNUAL DAY RATES £ 25,000
2017 £24,792
£23,917
2016
£22,623
20,000
£22,571
15,000 10,000 5,000 0
£7,350
£6,848
£4,803
£4,529
PSVs <900m2
PSVs >900m2
www.osjonline.com
AHTS <22,000 bhp
AHTS >22,000 bhp
Offshore Support Journal | May 2017
Asian Tug Technology & Salvage conference 18-19 September 2017, Singapore
BOOK NOW!
Strategic, commercial, operational and technical issues facing the tug and salvage industries in Asia
Platinum sponsor
A two day event in Singapore covering tug and salvage issues from operational, commercial, technical and regulatory standpoints.
Regional activity
Asia is seeing buoyant demand in the tug and salvage sectors. Singapore is an epicentre of this activity. It is home to one of the world’s busiest ports, significant yards, owners, and equipment suppliers. Singapore is also within easy reach of the industry regionally and internationally. And with 40 new tugs due to be delivered this year by Asian shipyards and a healthy forward order book, that includes highly specialised tonnage, the industry’s global supply chain has at least 40 powerful reasons to attend!
Gold sponsor
Silver sponsors
Neighbouring Indonesia is home to both the world’s largest and fastest growing tug fleets. Major newbuilding yards are of course located in China, Vietnam and Malaysia. And the Japanese cluster is a major system and sub-system supplier to the tug and salvage industry.
Spotlight on salvage
Equal priority is being given to the issues faced by the salvage industry in Asia’s busy waterways and sea lanes. Alongside tug and towage issues, our programme will focus on chemical and oil spill response, law, insurance and reinsurance, contracts and contract administration, claims and awards, LOF, Conventions and case studies on wreck removal.
Supporting media
Book now!
Book your place online today at www.tugtechnologyandsalvage.com or by contacting Kym Tan on +65 6809 3098 or at kym.tan@rivieramm.com
www.tugtechnologyandsalvage.com
Organised by
MARKET DATA | 55
Offshore vessel values
March 2017 The table on page 56 shows the monthly percentage change in value for offshore support vessels, by year of build, from 1 March to 31 March 2017. OSV values have continued their downward spiral, particularly in the anchor handling tug/supply (AHTS) vessel sector. Platform supply vessel (PSV) values remained consistent due to limited S&P activity. PSVs
AHTS
The were no platform supply vessel sales this month.
AHTS/anchor handling tug (AHT) values suffered heavy declines, in part due to the sale of Sanko Energy (16,315 bhp, September 2011, Keihin) for US$5.8 million (VesselsValue value day before sale US$6.75 million). DOF has signed a management agreement for Far Shogun (23,664 bhp, January 2010, Vard Langsten) with an option to purchase. Mermaid Storm (4,000 bhp, January 1994, President Marine) was sold by MMA Offshore to an unknown buyer. Source: VesselsValue.com
TOTAL VALUE OF 2ND HAND SALES IN MARCH 2017 VS 2016
TOTAL NUMBER OF 2ND HAND SALES TAKEN PLACE IN MARCH 2017 VS 2016
2017
S&P US$ millions
2016
2016
US$1,053 US$401 US$718 US$184 US$334
Gas
US$0
Gas
OSV
US$6 US$9
OSV
200
400
600
800
1,000
1,200
Value (US$ millions)
• Total activity by transaction value is up by 218 per cent in March 2017 compared to March 2016 • Bulker transaction values have increased by 163 per cent for March 2017 • Tanker transaction value has increased US$534 million vs March 2016 • Container transaction value has increased US$261 million vs March 2016 • With only 1 disclosed price within the OSV sector the total transaction value stands at US$6m, down US$3m from march 2016.
www.osjonline.com
62 33 15 31
Container
US$73 US$11
71
Bulker Tanker
Bulker Tanker Cont ainer 0
2017
S&P No
0
16 2 0 3 6
10
20
30
40
50
60
70
80
No. Vessels
• Total sales by number count are up 41 per cent for March 2017 compared to March 2016 • Bulker sales by number are up 15 per cent compared to March last year • Both tanker and container sales are higher for March 2017 compared to March 2016 • There were three OSV sales this month with only 1 sale price disclosed • Total sales are down for March 2017 compared to March 2016.
Offshore Support Journal | May 2017
56 | MARKET DATA
OFFSHORE VALUES: MARCH 2017 BUILT
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
LARGE PSV
MEDIUM PSV
SMALL PSV
SUPER AHTS
MEDIUM AHTS
SMALL AHTS
-2.5%
-0.7%
1.0%
-2.4%
-6.9%
-14.6%
5.2k
3.6k
1.7k
24k
8.2k
5.5k
-2.5%
-0.8%
0.9%
-3.5%
-9.3%
-16.5%
5.2k
3.6k
1.7k
24k
8k
5.2k
-2.6%
-0.9%
0.8%
-4.7%
-11.2%
-18.2%
5.2k
3.6k
1.7k
24k
8k
5.2k
-2.7%
-0.8%
0.7%
-6.0%
-13.2%
-20.1%
5.2k
3.4k
1.7k
24k
8k
5.2k
-2.7%
-0.8%
0.7%
-7.4%
-15.4%
-22.1%
5.1k
3.3k
1.7k
24k
8k
5.2k
-2.4%
-0.9%
0.4%
-8.8%
-17.3%
-24.0%
4.8k
3.3k
1.7k
24k
8k
5.2k
-2.5%
-1.1%
0.5%
-10.2%
-19.4%
-25.6%
4.8k
3.3k
1.6k
24k
8k
5.2k
-2.5%
-1.1%
0.5%
-11.7%
-20.7%
-27.2%
4.8k
3.3k
1.6k
24k
8k
5.1k
-2.9%
-1.2%
0.3%
-13.2%
-22.1%
-28.4%
4.8k
3.3k
1.6k
24k
8k
5.1k
-2.7%
-1.2%
0.3%
-14.6%
-23.1%
-29.2%
4.8k
3.3k
1.6k
24k
8k
5.1k
-2.8%
-1.3%
0.4%
-16.2%
-23.9%
-29.9%
4.8k
3.3k
1.6k
24k
8k
5.1k
-2.8%
-1.3%
-0.0%
-17.7%
-24.1%
-30.4%
4.8k
3.3k
1.6k
24k
8k
5.1k
-2.8%
-1.5%
0.5%
-18.2%
-24.1%
-30.5%
4.8k
3.3k
1.6k
24k
8k
5k
-3.0%
-1.5%
-0.0%
-20.7%
-24.0%
-29.8%
4.8k
3.3k
1.6k
24k
8k
5k
-3.1%
-1.4%
-0.0%
-22.2%
-23.3%
-29.5%
4.8k
3.3k
1.6k
24k
8k
5k
-3.0%
-1.3%
-0.0%
-23.6%
-22.1%
-28.9%
4.7k
3.3k
1.6k
24k
8k
5k
This table shows the monthly percentage change in value from 1st to the 28th March 2017 for OSV vessels. by year of build.
Offshore Support Journal | May 2017
www.osjonline.com
SHIP REPAIR ONE STOP SERVICE FREDERIKSHAVN, DENMARK - THE BEST SHIP REPAIR CENTRE IN EUROPE
• 3 DOCKS UP TO 215 X 34 M. • CRANES UP TO 100 TONNES • RO-RO PIER WITH CRANE FOR MOBILISATION OF ALL VESSEL TYPES • NO REQUIREMENTS FOR USE OF EITHER TUG OR PILOT • TOP QUALITY, COMPETITIVE AND DELIVERY ON TIME • AZIMUTH PIT IN ALL DOCKS AND DOUBLE PIT IN DOCK 4
ORSKOV YARD IS DNV-GL TRIPLE CERTIFIED IN ACCORDANCE WITH THE FOLLOWING STANDARDS: ISO 9001, ISO 14001 AND OHSAS 18001
WWW.ORSKOV.DK VISIT OUR WEBSITE FOR INFORMATION ABOUT FACILITIES AND CONTACT DETAILS
VROON OFFSHORE SERVICES CONNECTING MARKETS
VROON OFFSHORE SERVICES excels in the provision of diverse services and solutions for key offshore-support needs, including platform supply, emergency response and rescue, anchor handling tug supply, walk to work and subsea support. With a versatile fleet of approximately 100 vessels and 2,400 highly qualified and experienced colleagues, we are committed to providing safe, reliable and cost-effective services. Vroon Offshore Services is an international operator with a strong geographical presence in North Europe, the Mediterranean, North Africa, the Indian Ocean and Asian regions.
ABERDEEN | DEN HELDER | GENOA | SINGAPORE
Find us on:
WWW.VROONOFFSHORE.COM