Offshore Support Journal May 2019 by rivieramaritimemedia

May 2019

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North Sea OSV utilisation projected to reach 93% by mid-year see page 6

SUBSEA UPDATE Annual growth to average 10% over next five years

OFFSHORE RENEWABLES US$70Bn investment in offshore wind by 2030

CREWBOATS AND HELICOPTERS How crewboats are improving supply-chain logistics

DIGITAL SOLUTIONS Smart sensors increase reliability on newbuild tugs

Offshore pioneers in Marine and Construction Learn more at nov.com/lh

Contents May 2019 volume 22 issue 4

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Regulars

5 COMMENT 6 MARKET DATA 60 IMCA NEWS

Subsea update

8 The subsea market is anticipating annual growth at an average 10% over the next five years, thanks to a forest of subsea trees

Offshore renewables

10 With an estimated US$70Bn being spent on offshore wind development by 2030, OSV operators are looking to renewables to bolster the sector’s recovery

Offshore construction vessels

12 A look at Otto Candies' new IMR vessel, Paul Candies 13 A fleet of versatile hybrid MPSVs are being put to good use by Dubai-based Telford Offshore

Area report – Middle East

15 With significant regional investment expected over coming years, notably from Saudi Arabia, opportunities are rife for OSV operators in the Middle East

Crewboats and helicopters

23 The advanced safety, cargo capacity and digitalisation features of new crewboats are helping improve the logistics supply chain 25 Are the latest rotorcraft capable of revitalising the offshore helicopter sector?

Vessel oversupply

28 Despite utilisation rates trending upwards, asset values continue to be compromised by the sizable number of OSVs that remain stacked

Operator profile

32 Boskalis is looking at offshore wind and subsea, having reshaped itself through a number of acquisitions

Propulsion

36 Battery retrofits can bring substantial benefits in terms of fuel savings, emissions reductions, and dynamic positioning; and these gains are not limited to older vessels

Nor-Shipping preview

40 Innovation and ingenuity are characteristics of the Norwegian maritime space and this year’s Nor-Shipping event promises to demonstrate both in equal measure

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Offshore Support Journal | May 2019

Contents May 2019 volume 22 issue 4

ROV/AUVs

42 The value of autonomous vessels is now undisputed, with gains being made in the speed of operations, safety and emissions

Safety

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Editor: John Snyder t: +1 917 886 5192 e: john.snyder@rivieramm.com Production Editor: Kevin Turner t: +44 20 8370 1737 e: kevin.turner@rivieramm.com

44 How the maritime sector can learn from past mistakes and build further on an impressive record of safety

Brand Manager – Sales: Ian Glen t: +44 7919 263 737 e: ian.glen@rivieramm.com

Daughter craft and rescue boats

Sales: Indrit Kruja t: +44 20 8370 7792 e: indrit.kruja@rivieramm.com

48 New vessel designs and the latest launch and recovery systems helping daughter craft cope with extreme conditions

Digital solutions for OSVs

55 Cloud-based software improves synchronisation between vessels and shore, resulting in operational savings 59 Internet-of-Things technology is being used to improve vessel monitoring, energy efficiency and condition-based maintenance

Next issue

Main area report: Australasia; Dynamic positioning; Propulsion: thrusters; UUVs and UAVs; Bulk handling and tank cleaning; Communications

Front cover image: Skandi Iceman (image: DOF/Haavard Otneim)

Sales: Colin Deed t: +44 1239 612384 e: colin.deed@rivieramm.com Head of Sales – Asia: Kym Tan t: +65 6809 1278 e: kym.tan@rivieramm.com Sales – Asia & Middle East: Rigzin Angdu t: +65 6809 1277 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 Head of Content: Edwin Lampert

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Offshore Support Journal | May 2019

Published by: Riviera Maritime Media Ltd Mitre House 66 Abbey Road Enfield EN1 2QN UK

www.rivieramm.com ISSN 1463-581X (Print) ISSN 2051-0594 (Online) ©2019 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.

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COMMENT | 5

All available OSVs to the rescue

A John Snyder, Editor

A REGULATORY DISTINCTION COULD PREVENT A PERFECTLY CAPABLE OSV FROM PERFORMING DISASTER RELIEF OPERATIONS”

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lmost instinctively, mariners respond in emergency and rescue situations. I witnessed it first hand on 9/11 when approximately 500,000 people were evacuated by an impromptu flotilla of commercial and recreational vessels from Manhattan. It was the largest maritime evacuation since Dunkirk. Which is why it is downright counterintuitive that US OSV owners would be prevented from responding to one of the deadliest natural disasters to ever hit the Caribbean because of the rigid enforcement of US Coast Guard (USCG) regulations. Sadly, that was exactly the case two years ago in the aftermath of Hurricane Maria, which caused some 3,000 fatalities and destroyed property and infrastructure valued at more than US$91Bn. Looking to help in the hurricane relief effort, several US OSV owners and operators sought emergency approvals from the USCG to allow them to deviate from the services identified on their vessels’ Certificates of Inspection (COI). OSVs would seem to be tailor-made for recovery efforts. Designed to service offshore drilling rigs, platform-supply vessels can haul tonnes of cargo, equipment and supplies on their large open decks or carry fuel, drill water or liquid mud in their tanks; crewboats and fast supply vessels can carry passengers and smaller amounts of cargo at high speeds. But OSV owners who did try to help in the hurricane recovery and relief effort were turned away. “Due to an assortment of circumstances, this volunteer effort encountered a variety of challenges,” wrote the USCG in a letter – called a task statement – to the National Offshore Safety Advisory Committee (NOSAC), which sought recommendations for using OSVs and other non-purpose-built vessels to assist in

restoration and recovery efforts in response to natural and man-made disasters. In a welcome move, an industry panel made up of offshore energy members, NOSAC and the Offshore Marine Service Association (OMSA) are now working with the USCG to rectify the issue. Most OSVs engaged in the offshore energy market in the US are regulated under 46 CFR (Code of Federal Regulations) Subchapter L. “This regulatory distinction could prevent a perfectly capable OSV from performing disaster relief operations,” wrote OMSA president Aaron C Smith in a letter to USCG Rear Admiral Peter J Brown, District Commander, Sector Miami. “Said another way, it may be legal for an OSV to pump fuel or water to a rig in 3 m seas, but illegal for the same boat to pump water or fuel into Puerto Rico while tied to a dock.” OMSA’s solution to the problem is elegant. It suggests endorsing the use of the policy letter, “Temporary Emergency Berthing Vessels,” issued by the Eighth Coast Guard District Commander in 2016 as “a foundation for your permitting use of OSVs as hurricane response personnel berthing vessels for all of the ports within the Seventh District’s area of responsibility.” Mr Smith also states that US-flagged OSVs should be authorised to carry food, water and fuel in relief efforts and that sailing from Louisiana to Puerto Rico or the US Virgin Islands is a domestic and not an international voyage requiring SOLAS certification. The result of NOSAC and OMSA’s efforts is that the USCG is now considering a new response, restoration and recovery vessel (Triple R Vessel or TRV) COI endorsement, which would allow vessels to be preapproved for disaster response operations. Adopting the industry’s path forward makes perfect sense. When it comes to recovery, relief and restoration efforts, it should be all available OSVs to the rescue. OSJ

Offshore Support Journal | May 2019

6 | MARKET DATA

Offshore market: weak with firmer outlook Bourbon Evolution 801 in operation offshore Nigeria

The market may have finally reached the bottom, with observers noting a slow trend towards rebalancing and improved usage rates

Offshore Support Journal | May 2019

ffshore oil production is projected to rise by 3.3% in 2019 and 0.6% in 2020 to reach 26.3m bpd (27% of oil production), while offshore gas production will increase by 3.5% and 3.6% in 2019 and 2020 respectively, to 130bn cfd (33% of gas production). The data, from Clarkson Research, also suggests the number of reported offshore field start-ups (39 in 2018) and field discoveries (70) have both reached long-term lows, though a small uptick in discoveries in 2019 is now expected. In the longer term, lower offshore break-even costs and the replacement of ‘lost barrels’ should support field development activity, albeit set against a stronger US onshore outlook.

Rig utilisation is continuing to edge forward, rising 3% in 2018 to 69%, with 470 rigs active. To date, an increase in Jack-Up activity (up 7% year-on-year (yoy)) has not been matched by Floaters (down 5% yoy), although nearly 40% of the Floater fleet has now been retired since 2014. Progress continues around consolidation, rig retirements, S&P activity and solutions for ‘stranded’ newbuilds. Rate progress is moderate and regionally mixed, aside from a doubling of harsh semi-sub rates. The OSV sector may have turned a corner in 2018, with improvements in the number of working boats (up 84 to 2,076), utilisation (up 2% yoy, to 58% globally) and rates persisting into 2019, according to Clarkson Research.

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MARKET DATA | 7

Clarkson also expects that merger and acquisition and restructuring in the offshore sector will continue, with the potential to help consolidation. In general, for offshore, significant challenges remain, but there are also likely to be more opportunities in the next phase of the cycle. Steve Gordon, managing director of Clarkson Research says that participants across the offshore oil services market are reporting improved yoy activity levels moving into 2019. “Conditions are still challenging however, with rates in general remaining depressed despite a moderate pick up from ‘bottom of the cycle’ levels, reflected in the Clarkson Research Offshore Index averaging 48.8, up 6% from 46.2 in 2017.”

Mr Gordon also notes a gradual trend towards rebalancing and improved utilisation exist, albeit the pace of progress varies across segments. It is an opinion echoed by Bourbon, which notes in its annual report: “After four years of drastic reductions, the oil and gas majors have started to increase their investments again, mainly focussing on deepwater offshore drilling campaigns and maintenance activities for shallow water offshore fields. The recovery is already seen in demand for OSV vessels in several market segments and in several regions, notably, West Africa, the Caribbean zone and the North Sea.” Bourbon warns that this recovery can only be sustained if there is a reduction in over-supply and if modern

NORTH SEA PSV FLEET (SUPPLY, DEMAND & UTILISATION WITH 12M FORECAST) Active Utilisation increasing to ~93% PSV Demand

PSV Supply

300

Contracted Rigs

Utilisation

Active Utilisation

100% 90%

250

80%

Vessels/Rigs

60% 50%

150

40% 100

Utilisation

70%

200

30% 20%

10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19

2017

2016

2018

Forecast

TIDEWATER FLEET UTILISATION (2014 TO 2018) Highest active fleet utilisation since the beginning of the downturn

100% 90% 80%

86%

84%

81%

80%

83%

83% 76%

70%

79%

77%

78%

74%

73%

79% 71%

60%

69%

72%

74% 75%

76%

77%

43%

44%

45%

81%

78%

82%

70%

69%

66% 58%

50%

54%

40%

56% 49% 43%

41%

48%

54% 54%

44%

30% 20% 10% 0% Q1

2014

2015

www.osjonline.com

2016 Utilisation

Note: GulfMark fleet included as of November 15, 2018

2017 Active Utilisation

2018

The recovery can only be sustained if there is a reduction in over-supply and if modern vessels are re-activated”

vessels are re-activated. Tidewater however is more bullish in the short-term, anticipating that PSV utilisation in the North Sea could reach 93% in mid-2019, according to president and chief executive officer John Rynd and investor relations director Jason Stanley, commenting at the Scotia Howard Weil 47th Annual Energy Conference in March 2019.

Charter news

The OSV market has enjoyed a brief surge in work for specialised units of late. Maersk Supply Service’s (MSS) Stingray-class subsea support vessel (SSV) Maersk Involver has been fixed for 161 days by Total Denmark to support maintenance of the Dan F platform, located offshore Esbjerg, Denmark, for walk-to-walk and accommodation services. The contract is expected to start at the beginning of April. This is the second walk-to-work contract awarded by Total Denmark to MSS; the first was awarded in July 2018 for anchor-handling tug supply vessel Maersk Tracker, to provide multipurpose field support for three years in the North Sea. “The work performed by Maersk Tracker demonstrated we can respond to specific client requirements and consistently deliver safe and successful operations,” said MSS chief commercial officer Carsten Gram Haagensen. “This second contract gives us the opportunity to showcase the advanced capabilities of Maersk Involver in the Danish North Sea and continue our co-operation with Total Denmark as a reliable long-term partner.” OSJ

Offshore Support Journal | May 2019

8 | SUBSEA UPDATE

Strengthening subsea sector to be top oilfield services performer

fter years of being in the doldrums, the subsea market is forecast to become one of the strongest sectors in the offshore oil and gas market, with projected annual growth of 10% over the next five years, according to energy research firm Rystad Energy. Rystad Energy projects that the subsea market will be a top performing oilfield service (OFS) segment in the years ahead. This is quite a turnaround for a sector that saw purchases for subsea equipment and subsea umbilicals, risers and flowlines (SURF) fall from record highs in 2014 to record lows in 2018. From 2018 to 2023, purchases of subsea equipment such as subsea wellheads, subsea trees, manifolds and control modules are expected to grow by as much as 12% year-onyear. The market for SURF – namely procurement and installation of umbilicals, risers and flowlines, as well as installation of subsea equipment – follows close behind subsea equipment, with an expected 11% yearly growth, says Rystad Energy. With international oil companies (IOCs) focused on optimising

With annual growth expected at an average 10% over the next five years, the subsea market is hoping for a windfall

production of their existing subsea wells, Houston-based Helix Energy Solutions Group expects long-term demand for its well intervention services to be driven by increased demand for subsea tree installations. After activity levels fell to only 240 subsea trees installed globally in 2017 – the lowest level since the turn of the century – Rystad Energy expects that over 350 subsea trees will be installed per year by 2021. Based on its forecasts for both subsea trees and SURF lines, Rystad Energy expects more installations and deeper installations. Purchases for shallowwater subsea equipment (0 to 500 m water depth) had bottomed out in 2017, and subsequently began increasing from that point. Spend on deepwater subsea equipment (500 to 1,500 m)

Growth in the subsea sector over the next five years will mean plenty of work for OSVs

Offshore Support Journal | May 2019

began improving in 2018, and Rystad Energy expects ultra-deepwater subsea equipment (equal to or more than 1,500 m) to begin increasing this year. “For suppliers the downturn has been challenging, putting margins under pressure,” says Rystad Energy. It points out that low-margin projects awarded during 2015 and onwards are currently being executed, causing margins for subsea players to continue to decrease during 2018. Margins in 2018 dropped by one percentage point on a year-on-year average. However, the picture for the market is brightening. After 15 consecutive quarters of year-on-year declining revenues for subsea suppliers, Q4 2108 showed blended quarterly revenue growth at 9% year-on-year, according to Rystad Energy data. Subsea well intervention revenues for Helix Energy jumped in 2018 by 38% compared with 2017. Historically, says Helix Energy, drilling rigs were used for subsea well intervention to troubleshoot or enhance production, shift sleeves, log wells or perform recompletions. The company feels, however, that its well intervention vessels are able to provide similar services as drilling rigs at far lower costs. “Competitive advantages of our vessels are derived from their lower operating costs, together with an ability to mobilise quickly and to maximise operational time by performing a broad range of tasks related to intervention, construction, inspection, repair and maintenance. These services provide a cost advantage in the development and management of subsea reservoirs. We expect demand for our services to increase, due to potential efficiency gains from our specialised intervention assets and equipment.”

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SUBSEA UPDATE | 9

In Brasil, Helix Energy charted Siem Helix 1 and Siem Helix 2 from Norway’s Siem Offshore to support its well intervention work for stateowned oil company Petrobras. In a full year of operations, Siem Helix 1 and Siem Helix 2 achieved 97% and 94% utilisation, respectively, during 2018, as compared to 96% and 53% utilisation, respectively, during 2017. Another vessel that Helix Energy will be looking to secure a contract for this year is its newbuild well intervention vessel Q7000, under construction at Jurong Shipyard in Singapore. Q7000 is a dynamic positioning class 3-capable well intervention vessel that has a 150-tonne capacity active heave compensation crane, with two workclass remotely operated vehicles and other specialised equipment.

Subsea spend to increase

As a result of the downturn in the subsea market, Helix Energy deferred the delivery of Q7000 by two years, but must accept the vessel by 31 December 2019. It was contractually committed to reimburse the shipyard for its costs in connection with the deferment of the Q7000’s delivery beyond 2017. As a result, the total capital investment in the vessel will be more than US$515M. Luxembourg-based Subsea 7 was able to secure a contract from Norway’s Equinor for the provision of subsea inspection, repair and maintenance (IRM) services on the Norwegian Continental Shelf (NCS). Starting this year, Subsea 7 will provide IRM services for Equinor’s 560 subsea wells on the NCS. The contract involves the provision of a Life of Field (LoF) support vessel for five years, with options for extensions. Last year for the contract Subsea 7 converted its LoF vessel Seven Viking to hybrid-battery power and shoreside power ahead of the contract, which is valued at between US$150M-300M. This dual-power capability will enable Seven Viking to reduce its fuel consumption by approximately 12%. In discussing the company’s

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SUBSEA TREE & SURF INSTALLATIONS, 2000-2018 VS 2019-2023 Subsea tree installation 2000-2018 Count

13%

19%

Subsea tree installation 2019-2023 Count

17%

325

25%

360

# / YEAR

68%

58%

SURF line installation 2000-2018 Kilometers

18% 27%

SURF line installation 2019-2023 Kilometers

21%

24%

3,500

4,200

55%

KM / YEAR

Ultra deepwater

KM / YEAR

Deepwater

Shelf

Source: Rystad Energy SubseaCube

fiscal year 2018 results, Subsea 7 chief executive Jean Cahuzac points out that “Subsea 7 delivered good operational and financial results in 2018, despite the challenge of delivering projects awarded at lower prices during the downturn.” Subsea 7’s fiscal year 2018 revenue was US$4.1Bn, 2% higher than 2017. Healthier SURF activity was partially responsible for both increased company revenues and overall higher fleet utilisation levels, which rose from 61% in 2017 to 70% in 2018. In announcing TechnipFMC’s Q4 2018 results, chief executive Doug Pferdehirt said the company anticipates “an acceleration in subsea services Doug

Pferdehirt said the company anticipates “an acceleration in subsea services growth, driven by both internal investment and increased market activity.” However, TehnipFMC reported that its vessel utilisation rate for Q4 2018 was 62%, down from 69% in Q3 and 65% in Q2. In April, Paris-based TechnipFMC was awarded an integrated engineering, procurement, construction and installation (EPCI) contract from Neptune Energy for the Duva and Gjøa P1 projects, located in the Norwegian sector of the North Sea at a water depth of 375 m. The contract covers the delivery and installation of subsea equipment including umbilicals, rigid flowlines and subsea production system. OSJ

Offshore Support Journal | May 2019

10 | OFFSHORE RENEWABLES

Opportunities for OSV owners as US offshore wind picks up

US offshore wind power will grow from a current 30 MW to 18.6 GW by 2030

An estimated US$70Bn will be spent on offshore wind development by 2030 providing rich pickings for OSV operators, despite Jones Act limitations

he results of the lease sale held last December by the US Bureau of Ocean Energy Management (BOEM) demonstrate the rising level of interest in offshore wind in the US. The lease sale for sites off the coast of Massachusetts drew winning bids of US$405M – almost 10 times the total winning bids generated by the previous lease sale two years earlier. Heavyweights in the European offshore wind sector dominated the bidding. Topping the list were Equinor Wind US, LLC, an affiliate of Norway state-owned Equinor, Mayflower Wind Energy, LLC, a 50-50 joint venture between Shell New Energies US and EDPR Offshore North America, LLC, majority owned by Energias de Portugal, SA, and Vineyard Wind, LLC, a 50-50 joint venture between Denmark’s Copenhagen Infrastructure Partners and Avangrid Renewables, part of Spain’s Iberdola Group. BOEM has now issued 12 active commercial wind energy leases. While the activity is concentrated off the US Atlantic coast, projects have also been proposed off California and Hawaii, and the US Great Lakes. A white paper published under the Special Initiative for Offshore Wind (SOIW) of the University of Delaware College of Earth, Ocean & Environment estimates that 18.6 GW of offshore wind power will be generated by seven offshore windfarms in operation in the US Northeast by 2030. Titled

Offshore Support Journal | May 2019

Supply Chain Contracting Forecast for US Offshore Wind Power, the report by Dr Stephanie A McClellan provides a granular breakdown of the components of each of these seven projects, estimating total capital expenditures of US$70Bn. Major opportunities will be created for port staging, survey and geophysical service companies, crew transfer vessel, service offshore vessel, subsea and cable-laying vessel owners, wind turbine manufacturers, foundation installation and other suppliers. While the Trump administration has been supportive of offshore wind development as part of its “all of the above” energy policy, some states have also touted renewable energy in an effort to cut greenhouse gas emissions and the potential for job creation, in some cases requiring locally-provided content and services. Another topic that often rears its head in the US offshore energy market involves the US cabotage laws, known collectively as the Jones Act. The Jones Act requires any vessel transporting cargo between US ports to be built in the US, owned by a US citizen, to operate under the US flag and be crewed by Americans. For the purposes of the Jones Act, a wind turbine foundation on the seabed is considered a US port. This means that a non-Jones Act wind turbine installation vessel (WTIV) cannot transport components from an on-shore port to a turbine foundation. To use a non-US-flag vessel, components from a US port must be loaded onto a US-flag feeder vessel. Once the components are shipped to the project site, they can be lifted off by a non-US-flag WTIV onto the foundation without moving. In 2016, Brave Tern, owned by Fred Olsen Windcarrier, supported the installation of the wind turbines at the first US commercial offshore windfarm, Block Island Wind Farm, off Rhode Island. Last year, Block Island Wind Farm came under the control

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OFFSHORE RENEWABLES | 11

of one of the largest operators of offshore wind turbines in the world, Denmark’s Ørsted, following its acquisition of Deepwater Wind in October of last year.

New England leads the way

The New England states Massachusetts and Rhode Island have been at the forefront of developing offshore wind in the US. In 2016, Massachusetts passed a law requiring its utilities to procure 1.6 GW of offshore wind power by 2027. New legislation passed by Massachusetts lawmakers in August 2018 doubled the offshore wind target to 3.2 GW by 2035. In December 2018, Ørsted’s US-based company Ørsted US Offshore Wind received approval from Connecticut’s Public Utilities Regulatory Authority for its 20-year power-purchase agreement for the Revolution Wind offshore windfarm, located in federal waters between Montauk, New York, and Martha’s Vineyard, Massachusetts. With approval for a long-term power-purchase agreement with state utilities in hand, Ørsted will accelerate the development of Revolution Wind, with offshore installation work beginning in 2022 and operational start up in 2023. In Connecticut, Ørsted US Offshore Wind plans to invest US$15M in the Port of New London to support the Revolution Wind project, as well as contract a Connecticut-based boatbuilder to build one for the project’s crew transfer vessels. The project is expected to create over 1,400 direct, indirect and induced jobs. In January 2017, New York Governor Mario Cuomo announced a commitment to develop up to 2.4 GW of offshore wind by 2030 as part of the state’s goal to reduce greenhouse

gas emissions by 40%. The state’s ambitious plan requires 50% of its electricity to be generated by renewable energy by 2030. Some 90 MW will be supplied to the Long Island Power Authority under a 20-year power purchase agreement with Ørsted’s South Fork Wind Farm. New York plans to invest US$15M to train workers for offshore wind jobs and develop port infrastructure. In New Jersey, Governor Phil Murphy signed an executive order outlining a goal to develop 3.5 GW of offshore wind by 2030 and directed his administration to develop an offshore wind plan. New Jersey state lawmakers passed legislation backing the governor’s plan. Ørsted also has leases for Ocean Wind, a site located about 16 km off the coast of Atlantic City that could generate 3.5 GW of offshore wind.

Development spurred by energy credits

Maryland’s Offshore Wind Energy Act of 2013 provides financial support for projects in the form of Offshore Wind Renewable Energy Credits (ORECs). The Maryland Public Service Commission completed the first large-scale solicitation of offshore wind in the US in May 2017, awarding ORECs to US Wind and Deepwater Wind for two projects totalling 368 MW off the coast of Maryland that will come online between 2020 and 2022. Located more than 31 km from Ocean City, Maryland, Ørsted’s Skipjack project will interconnect into the Delmarva peninsula where it will deliver up to 120 MW of power to the state under the 20-year OREC order. OSJ

US OFFSHORE WIND, CURRENT LEASE HOLDERS LESSEE Garden State Offshore Energy 1

STATE

ACREAGE

LEASE #, YEAR

NEXT STEP

70,098

OCS-A 0482, 2012

SAP

Deepwater Wind New England

RI/MA

97,498

OCS-A 0486, 2013

SAP

Deepwater Wind New England

RI/MA

67,252

OCS-A 0487, 2013

FDR

Virginia Electric and Power Co

112,799

OCS-A 0483, 2013

SAP

US Wind

79,707

OCS-A 0490, 2014

COP

Vineyard Wind

166,886

OCS-A 0501, 2015

FDR

Bay State Wind

187,523

OCS-A 0500, 2015

COP

Ocean Wind

160,480

OCS-A 0498, 2016

COP

EDF Renewables

183,353

OCS-A 0499, 2016

SAP

Equinor

79,350

OCS-A 0512, 2017

SAP

Avangrid Renewables

122,405

OCS-A 0508, 2017

SAP

Skipjack

26,332

OCS-A 0519, 2018

SAP

Equinor

128,811

OCS-A 0520, 2018

LEASE EXECUTION

Mayflower Wind

127,388

OCS-A 0521, 2018

LEASE EXECUTION

Vineyard Wind

132,370

OCS-A 0522, 2018

LEASE EXECUTION

Source: US Bureau of Ocean Energy Management Notes: 1. SAP, Site Assessment Plan; 2. FDR, Facility Design Report; 3. COP, Construction and Operators Plan

www.osjonline.com

Offshore Support Journal | May 2019

12 | OFFSHORE CONSTRUCTION VESSELS

IMR vessel widens operator’s scope as US subsea market begins recovery Family-owned Otto Candies has added a sophisticated IMR vessel to its fleet to meet the demands of a recovering subsea market

tto Candies LLC is a Louisiana-based OSV owner whose roots stretch back to the earliest days of the offshore oil and gas industry in the Gulf of Mexico. Today, its fleet includes inspection maintenance and repair (IMR) vessels, dive support vessels, special purpose vessels and crew boats. But back in 1942, company founder Capt Otto B. Candies was contracted to provide small craft to clear water lilies from an access canal in support of an oil rig. The captain’s efforts were rewarded when he won a subsequent crew-transport contract with the Humble Oil and Refining Company, a predecessor to ExxonMobil. More than 75 years later, Otto Candies is a fixture in the Gulf of Mexico, with a fleet of 42 US-flag, Jones Act-compliant and Mexican flag vessels. In 2012, when Brent crude oil was trading at historically high levels of about US$111 per barrel, Otto Candies contracted Norway’s Marin Teknikk AS to design and engineer a new subsea support and construction vessel for operation in the US Gulf of Mexico. While Marin Teknikk had several of its vessel designs operating in the Gulf of Mexico, the contract with Otto Candies represented the first vessel that would be built in the US. Construction of the vessel was to be handled by Otto Candies’ own shipyard, Candies Shipbuilders in Houma, Louisiana.

IMR vessel Paul Candies was the first Marin Teknikk design contracted to be built in the US

Offshore Support Journal | May 2019

Marin Teknikk developed a new design for the project; the MT6020 was a refinement of its highly successful MT6016 series. OSV owners Fugro, Subsea 7, Rem Offshore and Toisa have all deployed vessels worldwide based on the MT6016 design. Delivered by Candies Shipbuilders this past year, Paul Candies is a US-flag, IMR vessel, built to support subsea installations and light construction. With a length overall of 101.25 m and beam of 20.6 m, Paul Candies is equipped with a Huisman active heave compensation crane that has a safe working load capacity of 250 tonnes at a 12.5 m radius. Two remotely operated vehicles (ROV) can be operated from a control room adjacent to the vessel’s ROV deck. Equipped with a moonpool and helipad, the vessel has 32 single-person and 29 double-person cabins, office and conference rooms, cinema, gymnasium and hospital. Named for the late Paul Candies, Sr, long-time president of Otto Candies, the IMR vessel is outfitted with three different propulsion systems supplied by Germany’s Schottel GmbH. These provide it with excellent manoeuvrability for dynamic positioning and station-keeping operations. For main propulsion power, four medium-speed Caterpillar 3516C diesel generator engines each produce 2,250 kW, as part of a Siemens Blue Drive Plus C low voltage, diesel-electric propulsion solution. The system incorporates the main generators, vessel automation, low-voltage switchboards, energy management system, electric drives, main propulsion and tunnel thruster motors. In combination with a power management system, electric drives increase the efficiency of the propulsion system and reduce fuel consumption. Fuel consumption at a transit speed of 12 knots is expected to be 12,110 litres per day. Paul Candies is equipped with two azimuth thrusters, rated at 2,600 kW each. The twin-propeller thruster design eliminates the need for an upper gearbox, reducing mechanical losses, lowering noise and vibration levels and lessening maintenance requirements, says Schottel. The vessel also has two fixed-pitch bow thrusters, each rated at 1,050 kW and one fixed-pitch retractable bow thruster to provide manoeuvrability and station-keeping in dynamic positioning operations. With the subsea market recovering, the timing of the delivery of Paul Candies should make it a welcome addition to the Otto Candies fleet. OSJ

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OFFSHORE CONSTRUCTION VESSELS | 13

Vessel versatility helps secure EPCI work in Mexico The hybrid design of MPSVs enables them to support shallow and deepwater subsea construction and accommodation projects

cquired from Sea Trucks Group Limited last year by Dubai-based Telford Offshore, its four new multi-purpose support vessels (MPSV) with dynamic positioning class 3 capability have proven extremely versatile. In deep and shallow-water fields, these vessels can perform heavy lifting, fabrication and installation, while providing high-capacity accommodation. They can also be deployed to greenfield and brownfield developments. Mexican offshore construction company Grupo Protexa has chartered three of the MPSVs for a total of 400 days to support state-run Pemex’s Litoral de Tabasco project in the shallow waters of the Bay of Campeche within Mexico’s Southern basin. The vessels will be deployed on a shallow-water engineering, procurement, construction and installation (EPCI) project for multiple lightweight offshore platforms and pipelines. Telford Offshore chief operating officer Duncan MacPherson says: “These significant shallow-water contracts awarded by Protexa illustrate the versatility of our fleet of DP3 vessels, which are capable of supporting multiple activities, focusing on high-capacity accommodation combined with pipelay, lifting, subsea and installation services.” Telford Offshore will deploy Telford 31 (ex Jascon 31), Telford 34 (ex Jascon 34) and Telford 28 (ex Jascon 28) for the project, with each vessel accommodating 300 people on board over the course of the project. While it may look like an ugly duckling, Telford 31 is built to a distinct hybrid design that combines high accommodation capacity and deepwater construction capabilities. It was used to install suction piles and subsea manifolds at water depths in excess of 1,000 m in support of ExxonMobil’s Erha Project in Nigeria. Already working in Mexico with Protexa on another project, Telford 31 will mobilise in July 2019 for the new contract, which includes scope for multiple subsea and topside activities. Telford 31 is equipped with a 400-tonne capacity heave-compensated main crane, a heavecompensated gangway, a moonpool near midship and 1,300 m2 of unobstructed deck space. The Bay of Campeche is familiar territory for Telford 31. From

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The hybrid design of Telford 25 allows it to support accommodation and subsea projects

September 2015 to February 2017, it was deployed on Pemex assets for two long campaigns consisting of accommodation, lifting, topside modifications, pipeline repairs and simultaneous operation services for Permaducto, part of Grupo Protexa. Telford 34, currently deployed in Mexico for another client, will mobilise for Grupo Protexa directly after completing that contract and will undertake multiple rigid pipelay and topsides works. The pipelay, offshore construction, SURF, accommodation and hook up vessel is equipped with an 800-tonne capacity heave-compensated main crane, an S-Lay system for pipes of 4- to 48-inch diameter, a heave-compensated gangway, a moonpool and 1,300 m2 of unobstructed deck space. Telford 34 also has a 55 m stinger supported by an A-frame for laying offshore pipelines. As a pipelay vessel, Telford 34 completed an EPCI assignment for the Total Anguille pipeline project, off Gabon, that required the design, procurement and installation of a 32 km, 18-inch pipeline between the Torpille and Anguille platforms at depths of 30-40 m. Telford 28 has been deployed on multiple accommodation and hook up service projects around the world, supporting such projects as the Saipem – FPSO Cidade de Vitoria for Brazil state oil company Petrobras’ Golfinho ultra-deepwater field and ExxonMobil’s Kizomba B deepwater field in Angola. Telford 28 is currently being mobilised to the Gulf of Mexico, where it will execute hook-up work with another client, then start subsea and topsides works for Protexa. It is equipped with a 270-tonne capacity main crane, a heave-compensated gangway and 1,100 m2 of unobstructed deck space. OSJ

Offshore Support Journal | May 2019

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Middle East AREA REPORT | 15

Saudi-driven regional investment good news for OSVs Over the next five years Saudi Arabia will lead a ramp-up in offshore oilfield spending in the Middle East, where local content is increasingly important

L&T and Subsea 7 will support the further development of the Hasbah field, 150 km northeast of Jubail Industrial City on the Arabian Gulf (image: Saudi Aramco)

il production in the Middle East is expected to grow substantially over the next five years, strengthened by state-run Saudi Aramco’s plans to increase capital expenditures by 30% over the period. Overall, oilfield expenditures in the Middle East are expected to climb to US$99Bn annually by 2020 – a level that has not been seen since the oil

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price collapse, according to Norwegian energy research firm Rystad Energy. By 2025, spending will grow even further to US$140Bn. From 2019 to 2025, the world’s largest oil producer, Saudi Aramco, is expected to increase capital and exploration expenditure by 30%, directed both to a mature asset base and new discoveries. Offshore developments will get the largest

capital injections, led by Saudi Arabia’s Marjan, Berri and Zuluf oilfields, according to Rystad Energy. Total oil production in the Middle East will climb from 24M barrels of oil per day (bopd) in 2018 to around 26M bopd by 2025. This increased spending could alleviate some of the OSV oversupply in the Middle East, where about 100 of the 450 vessels in the region have

Offshore Support Journal | May 2019

16 | AREA REPORT Middle East

been repositioned from Southeast Asia. There are about 60 vessels stacked and utilisation rates have averaged between 60-65%. Oilfield service companies and OSV owners are now positioning themselves to take advantage of the upswing in spending in the region. Saudi-based OSV owner Zamil Offshore and Houston-based McDermott International, Inc have signed a joint venture (JV) agreement to target the rising demand in the Saudi market for maintenance, modifications and operations (MMO) vessels. Under the JV, McDermott and Zamil Offshore will work together on an exclusive basis to provide Saudi Aramco with offshore brownfield engineering, procurement, construction and installation (EPCI) solutions and asset maintenance services.

Local partners are key

By partnering with Zamil Offshore, McDermott has secured a strong local partner, which has become increasingly important in winning work in the Middle East because of local content requirements in contracts and bidding practices. The JV is expected to significantly contribute to the in-Kingdom Total Value Add (IKTVA) programme and local content commitments, supporting Saudi Arabia’s Saudi Vision 2030. “Our partnership with Zamil reflects McDermott's commitment to supporting Saudi Aramco across the oil and gas production lifecycle,” says McDermott senior vice president, Middle East and North Africa Linh Austin. McDermott believes the partnership with Zamil Offshore will generate a new revenue stream in the maintenance, turnaround, inspection, and asset integrity services market in Saudi Arabia. McDermott is one of nine contractors that have been qualified for Saudi Aramco’s Long-Term Agreement (LTA) offshore programme. Besides McDermott, the current LTA contractors are: Cyprus-based Dynamic; Italy’s Saipem; UAE’s National Petroleum

Offshore Support Journal | May 2019

Strong local partners have become increasingly important in winning work in the Middle East”

Construction Company; Malaysia’s Sapura Energy; and China’s CNOOC. Also, three consortiums have qualified: India’s Larsen & Toubro (L&T) and UKbased Subsea 7; UAE-based Lamprell and Netherlands-based Boskalis; and UK-based TechnipFMC and Malaysia Marine and Heavy Engineering. Participants that qualify for the LTA programme are allowed to bid in a limited competition for Saudi Aramco projects that are expected to total US$3Bn annually. The initial programme is for six years, with a possible extension with two options of three years each. All LTA participants are pre-screened on

technical qualifications and must bid for all tenders. Under the LTA programme, the consortium of L&T and Subsea 7 was contracted by Saudi Aramco for EPCI of three oil production deck manifolds and subsea pipelines in the Zuluf and Berri Fields. This is the fifth award for the consortium and provides for significant project pipeline work for the firms. With three fabrication yards, L&T will use its flagship facility at Hazira in Gujarat, India, for the design and build of the offshore oil and gas projects. The first contract won by the consortium, valued at US$1.6Bn, was in support of the Hasbah field located in the Arabian Gulf, which is approximately 150 km northeast of Jubail in a water depth of 65 m. The development is the second phase of the Hasbah Offshore Gas field and is part of Saudi Aramco’s plan to supply additional natural gas to meet Saudi Arabia’s domestic goal of retiring oil-fired power plants in favour of gasfired power generation. Under the scope of work, the consortium will engineer, construct,

Qatari-based Halul will expand its fleet with four newbuilds, including three AHTS vessels

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YOUR PARTNER FOR MARITIME ADVANCEMENT

A world class, integrated, full service maritime yard. Recognized global industry leaders in both manufacturing and operations delivering an integrated, full service maritime yard that will be offering customers a cutting edge competitive advantage. Located at Ras Al-Khair on the eastern seaboard, IMI will be the largest maritime facility in the region and globally unique in terms of its product mix across multiple market segments.

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18 | AREA REPORT Middle East

procure and install offshore pipelines, cables and umbilicals and the T&I of platform system. L&T Hydrocarbon Engineering is responsible for EPC of the platforms and EPCI of the >>> >>> onshore pipelines system. The platforms are engineered in Bangalore, India and fabricated at L&T’s fabrication yard in Sohar, Oman. Founded in 1977, Zamil Offshore has one of the largest OSV fleets operating in the Middle East, with an average age of nine years and a total value of about US$71M, according to VesselsValue. Zamil’s newest vessels include the 80-tonne bollard pull anchor-handling tug supply (AHTS) vessels Zamil 505 and Zamil 506, built by China’s Guangdong Yuexin. Zamil Offshore also plans to scrap at least five vessels, including two 15-yearold smaller utility vessels, Zamil 21 and Zamil 22, two 20-year-old AHTS vessels, Zamil 4 and Zamil 5, and a 20-yearold maintenance and support vessel, Zamil 6. All the vessels were built by shipyards in India. Through its shipbuilding and repair division, Zamil Offshore manages and

Construction is underway on one of the biggest projects in the region, the US$5.2Bn Saudi mega-yard International Maritime Industries, bringing together some of the largest players in the offshore oil and gas sector”

operates a shipyard inside the Dammam port. Covering some 121,400 m2 with 500 m of waterfront, the shipyard has a shiplift that can handle vessels up to 1,500 tonnes, 80 m in length and 15 m in breadth. Zamil Offshore also has an engineering and construction services division for offshore hook-up projects with Saudi Aramco and a sea port

Zone B

Zone A

The boatbuilding facility – capacity of 15 OSVs per annum, operational in 2021

The general ship repair facility – opening 2021

operation division that provides navigation and pilotage services at King Abdul Aziz Port in Damman, serving about 2,400 vessels calling annually. UAE-based ADNOC Logistics and Services’ fleet extends well beyond the offshore services market, with more than 500 vessels, including dry bulk ships, container ships, tankers, LNG and LPG carriers. It has a fleet of 43 OSVs with an average age of nine years old and a combined value of US$120.6M. China’s Zhejiang Shipbuilding is also constructing nine 80-tonne bollard pull AHTS vessels for the fleet, all due for delivery in 2019. ADNOC Logistics and Services’ parent, ADNOC, plans to grow from its current production capacity of 3M bopd to 4M bopd by the end of 2020 and 5M bopd by 2030. ADNOC is expanding its development in the first phase of licencing through six new concessions, two offshore and six onshore. Elsewhere, UAE-based Zakher Marine International Inc is due to take delivery of seven vessels ordered from Chinese shipyards for delivery in 2019. Among the newbuilds are two third generation jack-up vessels, QMS Al Maryah and QMS Bahia, that are being delivered by heavy-lift ship from Haixi shipyard. Other vessels on order include two PSVs, each with clear deck areas of 800 m3, one dive support vessel, one AHTS vessel and one liftboat. Zakher Marine owns 33 OSVs, with an average age of eight years and a total valuation of US$64.8M, according to VesselsValue.

Reducing costs, improving utilisation THE FOUR ZONES OF THE SAUDI MEGA-YARD INTERNATIONAL MARITIME INDUSTRIES

Zone C

The shipyard facility – capacity to produce three VLCCs plus 15 other merchant vessels per annum; operational in 2020

Offshore Support Journal | May 2019

Zone D

The rig fabrication yard – operational by the end of this year

“We plan to focus further on reducing our operational cost in 2019 across the group companies; higher revenue and lower operational cost is what we are striving for,” says Stanford Marine chief executive Elias Nassif. In 2018, Dubai-based Stanford Marine secured 72 new contracts, operating 42 vessels in support of offshore operations in the Middle East, Southeast Asia, Nigeria as Angola. Despite tough market conditions, the

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Middle East AREA REPORT | 19

UAE OSV owner had a fleet utilisation rate of 74%. “At Stanford Marine, we anticipate sustained utilisation levels above 80%, despite the low utilisation of the world OSV fleet,” says Stanford Marine chief executive Elias Nassif. With a fleet consisting of crewboats, AHTS vessels and PSVs, Stanford Marine’s 32 vessels in the Middle East have an aggregate valuation of about US$50M, according to VesselsValue. Last year, Stanford Marine’s Grandweld Shipyards was awarded a US$45M shipbuilding project for 10 vessels. “[At] Grandweld, despite the slow demand in the shipbuilding business, we continue to identify potential opportunities to build vessels for clients within the Gulf Cooperation Council,” says Mr Nassir. “As for ship repair, it is expected to turn healthy due to the

ADNOC owns 43 OSVs and has orders for nine more AHTS vessels at Chinese yards (image: Grandweld)

improved utilisation of the OSV fleet in the region, hence the demand for dockings,” he notes. Construction is already underway on one of the biggest projects in the region, the US$5.2Bn Saudi mega-yard

TOP MIDDLE EAST OPERATING OSV OWNERS FLEETS BY NO. OF VESSELS 50

$160

$120

43 36

$90

$60

$30

Zamil Offshore

ADNOC Logistics & Services

Halul Offshore

Zakher Marine

Stanford Marine

Saudi Arabia

UAE

Qatar

UAE

No. of vessels

Source: VesselsValue. All data valid as of April 2019

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Total value US$M

International Maritime Industries (IMI). Set for opening at Ras Al-Khair in 2022, IMI is a cornerstone of the Saudi government’s Vision 2030 programme that aims to diversify the country’s economy, employment and revenue. IMI brings together some of the largest players in the offshore oil and gas sector. It is 51% owned by Saudi Aramco, 19.9% by Saudi Arabia-based shipping company Bahri, 20% by Dubai-based rig builder and fabricator Lamprell and 10% by South Koreabased shipbuilder Hyundai Heavy Industries (HHI). All of the engineering, procurement and construction contracts have been awarded for the shipyard’s development. Early construction is ongoing, with dredging and reclamation works “progressing as planned,” according to Lamprell. Lamprell’s equity investment in the shipyard is US$59M. Divided into four zones, IMI will offer rig fabrication, commercial ship construction, OSV building and general ship repair. Its facilities will include a 490 m x 90 m rig dock, a 550 m ship dock, a 25,000-tonne-capacity shiplift and two large cranes. Vessel orders are already lined up for the facility. Bahri plans to place orders with the IMI yard to construct a minimum of 52 different vessels, including 20 VLCCs over a 10-year period. The shipping company also

Offshore Support Journal | May 2019

20 | AREA REPORT Middle East

plans to use IMI for most of its vessel maintenance, repair and overhaul requirements. Up to 20 rigs are expected to be built at the IMI facility over the next 10 years. “Our IMI joint venture has provided us with a Letter of Intent (LOI) for two newbuild jack-up rig orders, the first order globally since 2015,” says Lamprell chief executive Christopher McDonald. Technical partner Lamprell has completed the development of a new LJ43 proprietary jack-up rig design for the project, in collaboration with naval architect and engineering firm MSC Gusto. Zone D, the rig fabrication yard, will be operational by the end of this year. Lamprell will complete the assembly of the first two jack-up rigs that will be delivered from the shipyard. It will undertake most of the fabrication work for both jack-up rigs at its Hamriyah yard in the UAE, while maximising work in Saudi Arabia to approximately

Christopher McDonald (Lamprell): “Local content is a key going forward”

15% of the scope of work. An LOI was signed for the subcontract of the two newbuild jackup rigs from IMI in December 2018, with the rig design and final contract terms expected to be concluded in Q2 2019.The contract is valued at US$280M. Lamprell will also be the technical partner for Zone A, the general ship repair facility that will be open in 2021. Zone C, the shipyard facility, will have a capacity to produce three VLCCs plus 15 other merchant vessels per annum and be operational in 2020. Zone B, the boatbuilding facility, will have a capacity of 15 OSVs per annum and will be operational in 2021. HHI will be the technical partner for both zones. Through its inclusion in Saudi Aramco’s LTA offshore programme, Lamprell says it was able to increase its bid pipeline from US$3.6Bn in 2017 to US$6.4Bn in 2018, with bidding on new LTA projects already under way. Lamprell will focus on EPC of

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Middle East AREA REPORT | 21

offshore structures such as topsides and jackets, while Boskalis will concentrate on transport and installation. They were among the four contractors that were added last year, an indication of the volume of work expected in the near term, according to Lamprell’s Mr McDonald. Mr McDonald also points to the number of rig refurbishments that Lamprell performed last year as a positive sign for the market. “We delivered 23 rig refurbishments, which we think is a leading indicator of a recovering market,” he said For the offshore wind market, Mr McDonald points out that there is a projected need to fabricate up to 500 jackets globally over the next two years. Lamprell can deliver about 50 jackets per year without compromising its yard capacity for the LTA programme. Local content is “a key going forward,” Mr McDonald says, which is why the company established Lamprell Saudi Arabia with a local JV partner. Overall, Mr McDonald says he expects full year revenues for 2019 will be in the US$250M-400M range. “We’re encouraged by increased scrapping and consolidation among offshore drillers which will further rationalise rig capacity. We’re starting to see signs of a tighter market for higher spec rigs, which we believe will lead to potential orders in the medium term.” Additional shipyard capacity is being added in Qatar, although on a much smaller scale. Dutch project management company Royal

WE’RE ENCOURAGED BY INCREASED SCRAPPING AND CONSOLIDATION AMONG OFFSHORE DRILLERS WHICH WILL FURTHER RATIONALISE RIG CAPACITY”

HaskoningDHV is developing plans for the upgrade of Milaha’s shipyard to increase its capacity and efficiency in handling ship repairs on larger and more complex vessels, according to Milaha’s president and chief executive Abdulrahman Essa Al-Mannai. The 40-year-old facility has two floating docks and a shiplift with capacity to handle vessels up to 150 m. Plans involve adding a larger floating dock,

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with completion by Q3 2020. Qatar-based Halul Offshore Services Company, a subsidiary of Qatar Navigation (Milaha), has four vessels under construction for delivery this year, including the PSV Halul 47 and three 150-tonne bollard pull AHTS vessels, Halul 64, Halul, 66 and Halul 67. All are under construction at India’s Laursen & Toubro (L&T Shipbuilding). OSJ

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CREWBOATS AND HELICOPTERS | 23

Crewboats gain favour among oil majors New vessels are incorporating advanced safety, cargo capacity and digitalisation to improve the logistics supply chain

Liam J McCall, sister vessel to the Libby J McCall, can reach a speed of 40 knots (image: Incat Crowther)

mid signs of a slow recovery in the offshore oil and gas sector and continuing growth in renewables, charterers are demanding crew boats and crew transfer vessels with designs that offer greater safety, efficiency and cost control. “We are now seeing slow growth in the crewboat market, with a drive from oil majors to optimise costs over the whole operation, which includes using newly designed platforms and technologies,” says a spokesman for Australian naval architect and marine engineer Incat Crowther. Higher levels of passenger comfort, faster transit speeds, more cargo capacity and more efficient transfers to offshore platforms are among the key requests for logistics supply chain management. “Some of these vessels have modest cargo requirements, while others are designed specifically for both high cargo deadweight and crew change operations,” says Incat Crowther. One such vessel is the Libby L McCall, one in a series of US-based Seacor Marine’s “Comfort Class” fast supply vessels (FSVs) designed by Incat Crowther. With the capacity to carry 300 tonnes of cargo on deck, Libby L McCall has dynamic positioning class 2 capability for enhanced offshore station keeping, an active ride control system for optimal passenger and crew comfort and specially designed gangways on each side of the vessel to provide safe boarding operations. Creature comforts such as “privacy pods” with internet connectivity and reclining seats, similar to first-class airline accommodation, keep passengers comfortable on long transits for deepwater oil and gas operations. Seacor Marine chief executive John Gellert calls the Comfort Class FSVs “a cost-effective alternative to helicopters,” adding they also have the “flexibility to move vital cargo.” Austal global sales manager, offshore Chris Pemberton agrees that crewboats can be cost-effective alternatives to helicopters and says that in some cases, international oil companies (IOCs) have initiated the change from helicopters to marine alternatives – sometimes mandating this – when the safety standards of local helicopter services are called into question. Adds Mr Pemberton: “The case for marine

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alternatives can always be made in terms of economics: it is always cheaper per seat.” He adds that crewboats and crew transfer vessels have other advantages over helicopters. “Passengers can travel with a good amount of luggage, which is important if the crew change is for a two-week period. Also, larger crew transfer vessels (CTVs) can perform other functions, such as delivering ‘hot-shot’ cargo, search and rescue and oil spill response,” he says. As Mr Pemberton points out, there is also an increased emphasis on safety in the offshore wind sector. For CTVs, offshore wind operators and suppliers that send technicians out to service and maintain the turbines are demanding higher levels of safety and efficiency, such as ‘step-less’ transfers. Safety and efficiency are also playing into the increased digitalisation of crewboats and CTVs. Largely through advances in engine efficiency, crewboats are becoming more efficient in terms of fuel consumption – which is becoming increasingly important to IOCs. “Engine fuel monitoring systems (EFMS) are becoming more common and most IOCs are now making them mandatory,” says Mr Pemberton. Shipbuilder Austal saw this as an opportunity to incorporate a value-added, “smart” digital product into its vessels. It says that the biggest cost items in monitoring fuel are the fuel flow meters required on each engine.” To address this, Austal has developed a proprietary control and monitoring system called Marinelink-Smart that can integrate the output from the flow meters on the engines and save the owner the cost of implementing a full third-party EFMS. The system allows the monitoring and remote control of major systems on board, such as engines, propulsion equipment and electrical power, providing real-time data for improved decision making. OSJ

Offshore Support Journal | May 2019

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CREWBOATS AND HELICOPTERS | 25

Offshore helicopter segment prepares to lift off New rotorcraft are reducing costs in the offshore helicopter market while E&P opportunities are opening up. But is this enough to revitalise a sector hit hard by the oil and gas downturn and burdened by oversupply? Sikorsky recently delivered its 300th production S-92 helicopter to Era Group (image: Ned Dawson)

uch like the OSV sector, the offshore helicopter market has been buffeted by strong headwinds from the prolonged downturn in the oil and gas market but an analysis by UK-based Westwood Global Energy Group, foresees brighter skies ahead. “We see about a 5% annual growth rate over the next five years for the offshore helicopter market,” Westwood Global Energy Group director Steve Robertson says. “The main driver is platform operations, plus offshore drilling rigs – similar drivers to the OSV market.” Expenditures on offshore helicopters are expected to increase to a total of US$18Bn between 20192023, with about US$130M related to offshore wind activities. Utilisation rates will be about 63-68%, according to Westwood Global Energy.

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‘Super-medium’ rotorcraft

Some of the most popular models in the offshore helicopter fleet – Lockheed Martin’s Sikorsy S-61 and S-92, the Airbus H215 and H225 and the Russian Helicopters’ Mi8 – are categorised as large units, which is based on maximum take-off weight (MTOW). The dominance of these larger offshore helicopters is now being challenged by a new generation of ‘super-medium’ rotorcraft with 7,0009,000 kg MTOW. Manufacturers such as Leonardo, Airbus and Bell say that the super-medium rotorcraft can perform most of the duties of a heavy helicopter at lower acquisition and running costs, with the latest standards in safety, comfort and efficiency. “Several designs fit this category, such as the Airbus H175 and Leonardo AW189, and Bell’s forthcoming 525,” says Mr Robertson. “In theory, these aircraft can perform many, but not all, of the missions

currently performed by heavy (above 10,000 kg MTOW) helicopters.” Still, Mr Robertson does not foresee the old mainstays, such as the S-92, disappearing from the fleet anytime soon. “Our analysis of the heavy helicopter market shows that utilisation improved in 2018 for the S-92, so it is hard to argue that they are getting replaced just yet,” he says. “Sikorsky is also offering upgrade packages to the S-92 aircraft and a newer variant, the S-92B, which is starting to be sold this year with deliveries expected in 2022. This appears to be a move to improve the competitiveness of the S-92 with the super-medium category,” says Mr Robertson. One energy company that has initiated the renewal of its offshore helicopter fleet is Saudi Aramco. It has purchased 16 medium-class AW139s for offshore search and rescue (SAR) operations from Italy’s Leonardo. A particularly useful addition to the AW139

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26 | CREWBOATS AND HELICOPTERS

rotorcraft is night vision technology, which greatly improves flight safety. Additionally, Saudi Aramco has replaced five AW109s with the newest variant of the Airbus H145, which are 4 tonne-class, twin-engine helicopters. “It is thought that the lower acquisition and operating costs of super-mediums in certain roles will make them a popular choice with operators in comparison with heavy helicopters,” says Mr Robertson.

A changing of the guard?

As is the case in the OSV sector, the offshore helicopter segment is also being weighed down by oversupply. “Our analysis shows that demand growth alone is not going to absorb the excess supply,” explains Mr Robertson. “The problem is that the industry has gone through a fleet replacement and renewal process and brought into the market more efficient, more comfortable aircraft built to the latest safety standards. [But] the industry has not taken the older units out yet because there are still companies happy to use a 30-year-old unit and there is nothing else driving the need to scrap older helicopters, such as regulations or requirements from oil companies.” Overall utilisation of the S-92 remains relatively strong – an estimated 78% –

Steve Robertson (Westwood Global Energy): “Lower acquisition and operating costs of super-mediums will make them a popular choice in comparison with heavy helicopters”

Offshore Support Journal | May 2019

despite the oil industry downturn, which is testament to the performance of the helicopter. Also, points out Westwood Global Energy, it is the only real alternative to the Airbus H225 units, many of which have not returned to the market since 2016. In some limited instances, crew boats and fast supply boats, outfitted with comfortable airline-type seating, well-appointed cabins and walk-to-work gangways, have displaced helicopters, but, says Mr Robertson, “there are many areas around the world where oil and gas operations are too far from shore, or sea conditions are too harsh, to make them a viable alternative.”

Intensive use

While it does not have historical data to compare to, Westwood Global Energy reports that some helicopters in Brazil and the North Sea are being used intensively, with some units recording over 100 flights over an 18-day period. The main workhorses in such cases were the 150 active S-92s, which completed 5,335 flights over an 18-day period, averaging two flights per day. Data provided by Sikorsky shows overall offshore flying hours for the S-92 increased by 7.5%, to more than 154,000 hours last year. The busiest heliport for S-92 operations was Aberdeen, with a total of 5,335 flights. As of 18 December 2018, nearly a fifth (19.3%) of the active fleet was working from Aberdeen (ABZ); Stavanger (SVG) in Norway accounted for 10% and Houma-Terrebonne (HUM) in Louisiana and Broome International in Australia each accounted for a further 9%. Based on 407 rotorcraft in the large offshore helicopter fleet, the Westwood Global Energy demand model puts large helicopter requirements at 235 units in 2018, yielding an implied utilisation of 59%. Examining the supply-side in more detail, Westwood Global Energy notes that for supply and demand to achieve equilibrium this year, out-of-service H215/225 and older helicopters would have to be removed from the fleet. This would bring the effective supply down to 226 units (compared to a modelled

Autonomous now? Just as digitalisation, automation and artificial intelligence are disrupting the maritime industry, will we see unmanned aircraft displacing helicopters anytime soon? “That’s a good question,” says Westwood Global Energy Group director Steve Robertson. “When we ask our clients, they unanimously say that at the moment there is no demand for it and no expected demand for it. However, the OEMs speak of ‘increased automation in the cockpit’ with their new product releases and whilst that for the moment does not mean ‘full automation’ it is perhaps a possible endgame in that course of development.”

demand of 235 units) and would require full utilisation of the S-92 fleet. However, some of the newer supermedium aircraft, such as the AW189 and H175, are likely to be used in roles that were previously serviced by large-class helicopters. This could inflate supply to as many as 278 offshore helicopters. “It’s hard to speak about the market in terms of bright spots, because the main international helicopter operating companies have all found this downturn very difficult and have faced pressure in terms of reduced flying hours and reduced rates on new contracts,” points out Mr Robertson. “Helicopters are expensive to acquire and the costs of having unutilised aircraft is high. We have seen new opportunities where new regions have opened to E&P operations, and developments which have brought with them the need for helicopter crew transfer and SAR services,” he says, citing Guyana, Senegal and East Africa and the expansion of existing operations in Brazil. OSJ

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28 | VESSEL OVERSUPPLY

Oversupply continues to blight the OSV recovery Utilisation rates are trending upwards but asset values are currently weak, as around 1,000 OSVs remain stacked

BELOW: DOF reported vessel utilisation rates of 74% for 2018, well above the industry average of 58%

hile there is a substantial oversupply of OSVs worldwide, conditions in the offshore market are improving, with “a number of companies experiencing an increase in sentiment within the North Sea,” according to VesselsValue head of offshore Robert Day. “Standard Drilling reported 100% utilisation for its five large PSVs in February, all of which were reported to be fixed at increased day rates,” said Mr Day. Owner of 17 platform supply vessels, Standard Drilling reports that Standard Princess, Standard Supplier and Standard Provider secured term contracts that will provide “solid utilisation going forward, with wellknown and reputable counterparties, all at increased day-rates in line with our 2019 forecast. The total firm period of the contracts corresponds to about 460-470 days. In addition, these term

contracts have a combined option period of about 265 days.” S.D. Standard Drilling chairman Martin Nes says the contracts and rates paid “confirm our optimism for the spring and summer season in the North Sea.” Other OSV owners such as Havila, Viking Supply, Olympic and DOF are reactivating vessels, which is another sign of improvement, says Mr Day. “Reactivating vessels is an expensive and time-consuming exercise, so they clearly see future potential within the region,” he says. Notable term fixtures in the North Sea in April were for two Skandi Offshore PSVs: Eldborg – which has a length overall of 78 m, beam of 17.8 m, capacity to carry up 2,500 tonnes on deck and clear cargo deck area of 800 m3 – was chartered for one month + 40 D/D options by Norway oil company Equinor at Nrk155,000 (US$18,100); the slightly larger PSV Torsborg, with an overall length of 86 m, beam of 17.6 m, capacity of 2,500 tonnes of deck cargo and clear cargo deck area of 901 m3, was chartered for four months by OKEA at Nrk155,000 (US$18,100).

Oversupply of tonnage persists

The OSV market recovery is still being curtailed by a substantial oversupply of tonnage, with an estimated 1,000 OSVs stacked worldwide. Half of the OSVs that are stacked have been out of service for at least three years and about 400 of those are 15 years old or more. Reactivating older vessels that have been cold stacked for multiple years is not economically sound.

Offshore Support Journal | May 2019

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VESSEL OVERSUPPLY | 29

Many of these older vessels will not be returning to work in the oil patch. OSV owners have tried to shed older and less desirable vessels from their fleets. Over the last six years, US-based Tidewater has made such tough decisions with its fleet, selling or scrapping 217 vessels – 85 of which went to scrap yards. Just last year, Tidewater sold or scrapped 38 vessels. With one of the world’s largest fleets of OSVs, Tidewater reported active utilisation levels of 82% in Q4 2018 – the highest rates since 2014. Active utilisation, however, only refers to the percentage of vessels in the active fleet; in Tidewater’s case, 165 vessels. Taking into account the combined active and stacked fleet of 257 vessels, Tidewater’s utilisation rates were a sober 54%. Paris-based Bourbon reported

similar utilisation rates for its fleet, with 82.3% active utilisation and 52.2% overall fleet utilisation. Its average day rates also slipped in 2018 to US$7,942, down from US$8,725 in 2017. Bourbon had a fleet time equivalent average of 183 stacked vessels. Still, prospects for the near term are brightening. This year, Tidewater plans to reactivate 10 OSVs for contracts in the Middle East, Nigeria, Thailand, Angola and Guyana that will generate a backlog of US$110M. Reactivation costs are substantial, averaging about US$1.4M per vessel. At the Scotia Howard Weil 47th Annual Energy Conference, Tidewater reported vessel average day rates were stable and that utilisation rates were trending upwards – but both were at substantially lower levels than 2014.

Deepwater oil and gas development in Brazil is also seeing increasing levels of activity. DOF chief executive Mons S Ase says Skandi Recife, the third of four new PLSVs in a joint venture with TechnipFMC, was delivered from a Brazilian shipyard last June and went on charter under an eightyear contract with state-owned oil company Petrobras. Petrobras also awarded DOF ASA a three-year contract for the dive support vessel Skandi Achiever. One distinct advantage that DOF enjoys in Brazil is that it owns nine AHTS vessels that were built locally. Overall, DOF had a healthy vessel utilisation of 74% in 2018, well above industry averages. Norway’s Solstad Offshore signed a contract with Shell Brazil Petroleo Ltda

OVERVIEW OF THE OSV FLEET TOP GLOBAL OSV OWNERS BY NO. OF VESSELS

Source: VesselsValue

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Offshore Support Journal | May 2019

30 | VESSEL OVERSUPPLY

(Shell) for the PSV Normand Starling that will commence in Q2 2019 and have a firm duration for two years.

Asset values still weak

Asset values continue to be weak. Mr Day says asset values for PSVs and AHTS vessels, both globally and in the North Sea, show no signs of improving. “This has been driven most recently by the Toisa bankruptcy sales flooding the market,” he points out. Toisa sold 21 vessels over a 12-month period for a total of US$220M, one of the largest court auctions of any offshore support vessel owner. The most recent transaction was for three AHTS vessels and three PSVs to Hong Kong’s China Sunrise Group for US$19.3M. One vessel acquired by Swiss geotechnical and engineering firm Geoquip Marine from the Toisa fleet was the 13-year-old PSV Toisa Vigilant, which has a market value of US$1.69M, according to VesselsValue. Renamed Geoquip Saentis, the 80 m PSV is currently being refitted in Liverpool with the latest version of Geoquip’s GMR600 fully heavecompensated offshore geotechnical drilling rig. A moonpool is also being added to the centre of the vessel to allow drilling operations. Geoquip Saentis has two work-class remotely operated vehicles (ROV) and a clear deck area of 720 m3. The PSV, which was built in China and delivered in 2005, has accommodation and workspace for 55 crew. It will provide a stable platform for offshore geotechnical operations, allowing seabed cone penetration testing equipment and ROVs to be mobilised alongside the company’s geotechnical drilling system GMR600, suitable for conducting drilling and sampling in all soil conditions up to 800 m depth plus borehole depth using steel API drill pipe.

Increasing activity in GoM

“The Trump administration has made no secret they want to open up new acreage for drilling,” says Mr Day, “and the oil majors are taking every opportunity they can to secure their

Offshore Support Journal | May 2019

AVERAGE DAY RATES BY VESSEL CLASS (2014 TO 2018) $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $-

Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 2014

2015 Deepwater Vessels

2016 Towing Supply

2017

2018

Total Other Vessels

• GulfMark fleet included as of Nov 15, 2018 • Spike in Q1 2017 average deepwater rates due to lump sum early contract termination payment

Source: Tidewater/Scotia Howard Weil 47th Annual Energy Conference

TOISA SOLD 21 VESSELS OVER A 12-MONTH PERIOD FOR A TOTAL OF US$220M, ONE OF THE LARGEST COURT AUCTIONS OF ANY OFFSHORE SUPPORT VESSEL OWNER”

position for the future.” There were 22 drill rigs operating in the US Gulf of Mexico (GoM) as of early April, according to Baker Hughes, which is up by 10 rigs from a year ago, but still substantially below 2014 levels. “Fewer rigs within the US Gulf are a direct result of the depressed offshore market experienced over the last few years,” says Mr Day. “As the price of oil falls, oil majors look to owners to improve processes and increase efficiencies. This improvement comes at a cost and many rigs (especially vintage units) become surplus to requirements. These rigs are either sent into layup or are scrapped, thus reducing the rigs operating.” Adds Mr Day, “In the short to medium term, I believe there will be fewer rigs in the US Gulf. However, this will begin to change as the market improves.” For now, OSV owners will have to wait a little longer for conditions to improve in the GoM. “We are seeing this occur in other operating regions so there is no reason it will not translate into the US Gulf,” says Mr Day. “There will be a lag due to the time required for a decision to be made and the reactivation process to take place.” OSJ

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32 | OPERATOR PROFILE

Boskalis looks to wind and subsea to capitalise on acquisitions Having reshaped itself through a series of acquisitions, Boskalis is now focused on prospects in offshore wind and subsea markets The dive support vessel Boka Constructor is operating in the Middle East under a three-year contract

rom land reclamation projects in Singapore to subsea cable installations for offshore windfarms in Europe to salvage operations in the Middle East, Royal Boskalis Westminster NV is a global player in the offshore energy, dredging, towing and maritime salvage sectors. Backed by a diverse fleet of about 900 vessels, including offshore construction vessels, heavy transport ships and trailing suction hopper dredges, Boskalis operations cover offshore oil and gas, renewables, port and coastal infrastructure and salvage.

Offshore Support Journal | May 2019

The effects of climate change, especially extreme weather conditions and the threat of flooding and storm surges, kept Boskalis busy in coastal resiliency and riverbank protection projects last year, as did the strong growth in European offshore wind. Boskalis chief executive Peter A Berdowski described 2018 as “a year with some appealing highlights in a market that continues to be challenging.” Like most companies with interests in the offshore oil and gas sector, Boskalis has had to weather the prolonged downturn. The Dutch public

company’s strategy has been to grow and diversify through highly targeted acquisitions, investments in its fleet and paring of underperforming assets. Despite the sharp decline in the price of oil and the cutback on capital expenditures by the international oil companies over the last few years, specific segments of the offshore energy market remain attractive to Boskalis. Mr Berdowski sees cautious signs of recovery but notes “we are still a long way away from the exuberant market climate of three to five years ago.” To support the offshore energy

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OPERATOR PROFILE | 33

business, Boskalis is now focusing its assets on what it sees as the most promising sectors: installation and intervention (I&I); subsea work including inspection, maintenance and repair (IRM); offshore wind and survey; and the more specialised short-term heavy marine transport and marine services business. Boskalis has an impressive fleet of semi-submersible heavy transport vessels, which was enhanced with its acquisition of Dockwise back in 2013. One of the assets acquired through Dockwise helped Boskalis “push back boundaries” in 2018 according to Mr Berdowski; he is referring to the technically challenging, recordsetting dry transport of the floating production storage and offloading (FPSO) P-67 from China to Brasil. Weighing a record 90,000 tonnes, the FPSO was transported by the semisubmersible heavy-lift vessel Boka Vanguard, formerly Dockwise Vanguard. With a deadweight capacity of 117,000 tonnes, the Boka Vanguard has a “bowless design” to accommodate offshore structures or vessels that might overhang the bow or stern of the vessel. Boskalis says the project demonstrated the benefits of the dry transportation of box-shaped FPSOs in terms of time and reliability. Production of oil and natural gas through FPSO P-67 in Brasil’s Lula Norte area in the pre-salt of the Santos Basin began last February. With the capacity to process up to 150,000 barrels of oil and compress of up to 6 million m³ of natural gas per day, P-67 is the ninth FPSO set up in the deepwater BM-S-11 block, which is jointly owned by Petrobras (65%) in partnership with Shell Brasil Petróleo Ltda. (25%) and Petrogal Brasil S.A. (10%).

Boskalis views subsea services as a highly fragmented market, with the majority of players operating just one or two survey and diving support vessels in a region. “With numerous players also being financially stretched, we see opportunities for expanding our position in Northwest Europe, Africa and the Middle East by acquiring assets or by acquiring a player with assets” says Boskalis. Based on its market outlook and existing subsea contracting capabilities, the company is gradually expanding its footprint in the shallow water SURF (Subsea, Umbilicals, Risers and Flowlines) market. This past February, Boskalis acquired a 62.5% stake in UAE-based oilfield services company Horizon Group, providing a local presence in the Middle East. The Horizon acquisition follows a partnership with Dubai-based oil drill rig builder Lamprell in Saudi Aramco’s Long-Term Agreement for Offshore Facilities (LTA) programme. The LTA covers engineering, procurement, construction, transportation and installation (EPCI) contracts in support of the oil giant’s

Subsea expansion

Over the years Boskalis has developed a modest but successful position in the subsea services market, focusing on survey and unexploded ordnance (UXO) clearance, diving and IRM work in shallow water regions in Northwest Europe, Africa and the Middle East.

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Peter Berdowski (Boskalis): “A year with some appealing highlights in a market that continues to be challenging”

offshore investment programme. Within the scope of the LTA, investments could exceed US$3Bn per annum with a programme lasting six years, with options by Saudi Aramco to extend for a further three- plus-three years, according to Boskalis. Selected contractors also have the right to bid for tenders put out by Saudi Aramco without further technical prequalification, considerably shortening the lead time through to award. Under the LTA, Lamprell will focus on the engineering, procurement and construction of offshore structures, such as topsides and jackets. Boskalis, meanwhile, will be responsible for the transport and installation of these structures, in addition to dredging activities and specialist subsea activities, including survey as well as pipeline and cable installation.

Tyra gas field redevelopment

The largest oil and gas investment ever made in the Danish North Sea, the Tyra redevelopment will allow the gas field to keep producing for 25 years after its completion in 2022. The US$3.4Bn redevelopment will require substantial subsea work, including EPCI work. Boskalis also opened a new office in Aberdeen, UK, to support its subsea services in the North Sea and has acquired a SURF contract for phase II of the redevelopment of the subsea installation of the Tyra gas field. Boskalis will deploy the dive support vessel Boka Atlantis in support of the project. Last year, Boskalis enhanced its fleet with the addition of a construction support vessel (CSV). Boka Falcon is a DP2 vessel with a bollard pull in excess of 400 tonnes, equipped with two remotely operated vehicles, a 150-tonne crane, and a large working deck. The vessel is on a multi-year charter and will enter into service in March. Boskalis said “if the right opportunity presented itself” it would consider adding a second CSV to its fleet. In the short term, Boskalis is committed to maintaining “a disciplined and selective focus on opportunities to

Offshore Support Journal | May 2019

34 | OPERATOR PROFILE

strengthen its position, in anticipation of recovery further down the line.” One of these opportunities was the acquisition of privately held UK-based marine survey company Gardline in 2017, for a total consideration of about US$52M. The deal was seen as a move to fortify the Dutch company’s efforts to further penetrate the seismic survey business and the growing renewable energy sector. Specialising in marine geophysical, geotechnical and environmental surveys, Gardline was contracted last year by Alpine Ocean Seismic Survey, Inc to gather survey results to develop windfarm design and permitting assessments for the proposed Empire Wind site, Equinor’s first significant offshore wind investment in the US. The Empire Wind site is located approximately 32 km south of Long Island, New York, covering 321 km2. The lease comprises an area that could potentially accommodate more than 1 GW of offshore wind, with a phased development of between 400-800 MW, with potential operations starting in the mid-2020s.

AS A LEADING INSTALLER OF SUBSEA EXPORT AND ARRAY CABLES AND OFFSHORE WIND TURBINE FOUNDATIONS, BOSKALIS STANDS TO GAIN FROM THE GROWTH IN RENEWABLES” The commercial lease for this federal offshore wind area was signed by Equinor in March 2017, following the US Department of the Interior’s Bureau of Ocean Energy Management (BOEM) auction in December 2016. Empire Wind will be constructed by private investors at a projected cost of approximately US$3Bn.

Offshore Support Journal | May 2019

Key acquisitions have bolstered the position of Boskalis in offshore wind

Water depth at the Empire Wind site ranges between 1,981 and 4,000 cm. Each wind turbine is expected to have an installed capacity of 10-15 MW. Earlier this year, Gardline acquired a new vessel which will be equipped to become a high-end geophysical vessel to accommodate the Northwest European market.

Strong foundation in offshore wind

The near-term outlook for the offshore wind market in Europe continues to be strong, with 409 new offshore wind turbines connected to the grid across 18 projects, according to Wind Europe. Europe now has a total installed offshore wind capacity of 18,499 MW and 4,543 grid-connected wind turbines across 11 countries. Over the last year, 12 new offshore wind projects reached FID. Investments in new assets amounted to approximately US$11.5Bn. As a leading European installer of subsea export and array cables and offshore wind turbine foundations, Boskalis stands to gain from the continued growth in renewables. It estimates its market share in foundation installations in Europe at approximately 10% and cable installations at about 35%. To bolster its capabilities in the foundation installation market, Boskalis commissioned Bokalift 1, a

dynamically positioned class 2 capable crane vessel in 2018. Boskalis reports the vessel was almost fully booked in its first year on an offshore wind foundation installation project. Once it moves off charter, the vessel’s next assignment will involve the decommissioning of a number of offshore platforms, starting in mid-2019. Boskalis is conducting a design and engineering review for the possible conversion of a second crane vessel. It is expected to make a firm decision on the conversion and its configuration between 2020-2022. In a consortium with cable supplier NKT, Boskalis secured its largest cablelaying contract last year, for offshore grid connection work for Germany’s Ostwind 2 project. Valued at US$281.5, the contract will see Boskalis combine multiple in-house disciplines including UXO survey, geotechnical and geophysical surveys, seabed preparation works, the transport and installation of 270 km export cable and seabed reinstatement. The export cable will connect the planned Arcadis Ost 1 and Baltic Eagle offshore windfarms to the onshore substation in Lubmin, Germany. The grid connection is expected to be completed by late 2022. Boskalis is also laying and installing cable under contracts totalling US$225M in support of the UK offshore windfarms Triton Knoll

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OPERATOR PROFILE | 35

and Moray East. It has also won a contract to support Scotland’s Inch Cape offshore windfarm – with a potential value of over US$225M – with a transport and installation scope, comprising turbine foundations, inter-array and export cables and an offshore substation. The project is currently under development and is expected to enter construction in 2020. In 2018 Boskalis also strengthened its offshore cable installation position with the acquisition of the cable-laying assets of Germany’s Bohlen & Doyen (BoDo). Based near Wilhelmshaven, BoDo has a long-established position in the German offshore cable installation market. The company’s operations comprise grid-to-grid and offshore substation-to-shore connections, which includes the installation of shallow-water offshore cables and the connection of offshore windfarms to substations. Rolled into the acquisition were equipment, burial tools, personnel, plus several smaller commercial and maintenance contracts. The most important assets were three large cablelaying barges, with capacities ranging from 800 to 4,000 metric tonnes.

As subcontractor to Prysmian, BoDo was involved in the first phase of the Ostwind project for 50Hertz. Recently, Boskalis received the award for Ostwind 2. In February, Boskalis was awarded a US$90M contract for the replacement and repair of a part of the inter-array cables at an offshore windfarm. To accomplish the repair and replacement, Boskalis will use three, anchored-barge spreads, including the Bokabarge 82 and BoDo Constructor acquired from Bohlen Doyen.

Shedding towing interests

While Boskalis has been busy transforming itself by adding key pieces, it has also been shedding underperforming divisions. Starting in 2016, a wave of consolidation transformed the container shipping business, which had a knock-on effect on the company’s towing division joint ventures, Saam Smit Towage and Kotug Smit Towage. With revenues declining, Boskalis made the decision early this year to divest itself from both ventures. Mr Berdowski explains: “In a market which offers no prospects for improvement, it was decided to fully exit this loss-making segment.”

Cutting emissions with biofuel As shipping movies towards a zero-carbon future, Boskalis has been testing biofuels that reduce CO2 emissions in its vessels. Back in 2015, Boskalis Nederland partnered with Amsterdam-based sustainable fuel provider GoodFuels and Finnish engine manufacturer and designer Wärtsilä in the Boskalis on Bio programme; a project to reduce the CO2 emissions from its vessels, trucks and earthmoving equipment operating in the Netherlands. Initial testing in 2016 involved the operation of the cutter suction dredger Edax on a B50 biofuel blend, 50% of which was made from residual products from the paper industry. The testing was so successful, Boskalis Nederland now uses this fuel not only for its vessels, but also for its dry earthmoving equipment and trucks. Part of that effort involves the use of a fuel water emulsion in the main engines of the hopper dredger Shoalway. Through its Keppel Smit Towage joint venture, Boskalis added two dual-fuel harbour tugs built by Singapore’s Keppel Singmarine. KST Liberty was the first LNG-fuelled tug to operate in Southeast Asia.

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Due in part to this decision, as well as impairment charges in the towage division, an extraordinary charge of €519M (US$583M) was recognised, consisting mainly of goodwill impairments and a write-off of vessels. Boskalis has now signed a letter of interest with Spain’s Boluda Corporacion Maritima to sell its interest in Kotug Smit Towage for €300M (US$337M), with the deal expected to close in H2 2019. Boskalis plans to sell its interest in Saam Smit Towage to its partner SAAM SA. Notable among Smit Salvage activities was being the lead salvor when the ultra-large container ship Maersk Honam caught fire on 6 March 2018, about 900 nautical miles from Salalah, Oman. The 15,000 teu container ship was towed to Dubai, where the remaining cargo was offloaded. While the ship’s fire-damaged bow section and accommodation block are being removed at Dubai Drydocks, the stern section of the vessel is being reused by Maersk in the construction of a new vessel in South Korea, with delivery set for the end of this year. Boskalis is also reshaping Singapore’s waterfront with two land reclamation projects, valued at approximately US$786M. Working with Penta Ocean and Hyundai, Boskalis is designing and constructing 387 hectares of land reclamation works, bounded by 9.1 km of caisson walls as part of the expansion of Tuas Port. The second project marks the construction of Singapore’s first polder, Pulau Tekong. This will require dike closures, dike reinforcements, drainage of the reclamation area and extensive dry earthmoving activities in a joint venture with Penta Ocean. Boskalis is also involved in the growing North American LNG export business. It has been contracted for dredging work in support of the LNG Canada export facility contract in Kitimat in British Columbia. The dredging scope for Boskalis includes removal and cleaning of contaminated and non-contaminated soil from the site of the future LNG export facility. OSJ

Offshore Support Journal | May 2019

36 | PROPULSION

Battery power provides boost for gas-fuelled ships Inventive owners are finding that battery retrofits can boost efficiency and reduce emissions, even for modern gas-fuelled vessels

our years ago, platform supply vessel (PSV) Harvey Energy became the first US ship fuelled by LNG when it went on charter to Shell in the Gulf of Mexico. Harvey Energy will soon make history once again as the first US-flag, dual-fuel, battery hybrid-powered PSV, after a retrofit at New Orleans-based Harvey Gulf International Marine’s shipyard. “The vessel can already outperform any PSV in the [US Gulf of Mexico] today in terms of speed, emissions, cost for fuel and fuel burn,” says Harvey Gulf International Marine chief executive Shane Guidry. “We want to continue to bring lower emissions and lower fuel cost savings to our customers.” Harvey Gulf International Marine (HGIM) has contracted Wärtsilä to supply an energy storage system, energy management system, transformer and drive, all mounted inside a single container. Wärtsilä will deliver its batteryhybrid module to HGIM’s Gulf Coast Shipyard Group (GCSG) in Gulfport, Mississippi in December. According to Wärtsilä, installing a 1,450-kW battery module will reduce exhaust emissions, fuel consumption and noise levels. Overall fuel costs are estimated to be reduced by 10-20%. Additionally, Harvey Energy will be able to sail to and from Port Fourchon, Louisiana on electric power only, using its battery at the dock to lower noise and emissions. The retrofit should also result in less running hours on the engines, reducing maintenance costs. Harvey Energy was one of a series of six PSVs built at GCSG to a Vard 1 311 design from Vard Marine (formerly STX Marine). It has an overall length of 92 m, beam of 19.5 m, with a clear deck area of 974 m2 and dynamic positioning class 2 capability. Five of the PSVs were delivered for contracts in the US Gulf of Mexico.

There are at least two clear justifications for retrofitting batteries on to dual-fuelled ships. The first involves the clear efficiency gains to be made. LNG can reduce SOx and NOx emissions to virtually zero and reduce CO2 emissions by around 20% compared to diesel. Batteries can be added to that to further reduce fuel consumption and therefore emissions. They also offer on-demand

Offshore Support Journal | May 2019

A remote engine overhaul has prepared advanced dive support vessel Seven Atlantic for extended service

Retrofitting Harvey Energy is only the start of the transformation of HGIM’s fleet, says Mr Guidry. All of HGIM’s LNG-fuelled PSVs will have battery-hybrid power installed. An order has already been signed for the next vessel, Harvey Supporter. This is not the first time Wärtsilä has worked with HGIM. Each of the owner’s LNG-fuelled PSVs have three Wärtsilä 6L34DF dual-fuel gensets that generate 7.5 MW of power and Wärtsilä’s LNGPac fuel storage and supply system, which can hold 295,000 litres of LNG. Integrating the existing Wärtsilä power distribution and management and integrated automation systems will be part of the retrofit project. Mr Guidry says that this existing relationship made Wärtsilä the natural choice for a partner on the batteryhybrid retrofit: with Wärtsilä’s support, none of the five

power with fast dynamic response – crucial for the kind of DP work that is the staple of these vessels. Further, batteries used for peak shaving make extra sense for LNG engines, which need to be operated with consideration for optimal loading due to the careful control of fuel-air mix required to avoid knocking or misfiring.

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PROPULSION | 37

Remote engine overhaul refreshes diving support vessel One of the world’s biggest diving support vessels has re-entered service after an engine overhaul that included having key components tested and repaired at a remote workshop. The engines and turbochargers on the 140 m-long Seven Atlantic, owned by Subsea 7, were serviced 10 years after the vessel was built, with Royston Diesel completing the work. Seven Atlantic is powered by six 3,360 kW Wärtsilä W7L32 engines running on marine gas oil, each paired to a 3,360 kVA Van Kaick generator. The diesel-electric arrangement drives three 2,950 kW stern azimuth thrusters, two 2,400 kW retractable bow azimuth thrusters and a 2,200 kW bow tunnel thruster. One of the engines was disassembled to install new cylinder heads, air start valves, indicator cocks, injectors, and cylinder seals. Relief valves, pistons and conrods, cylinder liners, bearing blocks, crankshaft and turbocharger were sent to UK headquartered Royston’s Newcastle workshop for checking and essential repair work, before being returned ahead of the final reassembly

and inspection of the engine. Engineers also overhauled the turbocharger on another engine. The NA297 Napier turbochargers from both engines were removed, stripped, cleaned, inspected and balanced at Royston’s dedicated turbocharger facility. Following the service, incremental load testing in line with the engine manufacturer’s specification was also completed by engineers. Royston service manager Shawn Doering said that the company’s experience with the engine and vessel type ensured a quick re-entry into service. Shipowners can save up to 30% on the cost of overhauls by using third-party service providers instead of OEM services, he said. Seven Atlantic has a 24-person saturation diving system as well as a 120-tonne heave compensated crane. The vessel’s DP3 system is designed to support diving operations in wave heights of up to 4.5 m. This requirement led to an unusual propulsion layout, with three engine rooms housing two diesel generator sets and three switchboards each.

LNG-fuelled PSVs in Harvey Gulf’s fleet experienced unscheduled downtime. “We believe our mutual project will have a considerable impact in the market and will further the environmental drive towards sustainable solutions in the offshore market space,” explains Mr Guidry. He also sees advantages of battery power in dynamic positioning (DP) operations. The retrofitted vessels will be able to position in much harsher environments and offload below-deck cargo 40% faster, he says. The ability to operate on battery power will also assist manoeuvrability during these operations. As compared with combustion engines, batteries respond well to the rapid load changes needed for positioning in rough sea conditions. Harvey Energy is not the first gas-fuelled vessel to undergo a battery retrofit with Wärtsilä. Most recently, Norway-based Eidesvik Offshore replaced one of the dual-fuel engines in PSV Viking Princess with a Wärtsilä hybrid power module. This points to an emerging trend in gas-fuelled vessels being retrofitted with batteries. DNV GL principal engineer Sverre Eriksen confirms that hybrid vessels are becoming more popular. “Most vessel projects today begin with a discussion on propulsion including LNG and batteries. Owners are familiar with these but often aren't always aware that they can be combined. We are seeing increased interest.” A recent DNV GL collaboration with shipyard group Keppel Offshore & Marine is a case in point. The companies have agreed to co-operate to promote LNG as a marine fuel.

While the partnership has begun with the design of LNG bunker vessels, there is a specific reference to “LNG-related assets employing battery and hybrid technologies.”

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Methane slip

Another reason for adding batteries to an LNG-fuelled offshore ship reflects the shifting demands of oil majors. Since the first round of dual-fuelled vessels were built for the Norwegian offshore market pre-2015, the demand for LNG has grown globally, while its environmental benefits are increasingly questioned, principally because of methane slip at production and across the supply chain. Big oil charterers are now looking to battery solutions to both cut fuel bills and slash emissions on the ships they hire. DNV GL confirms that the growth rate for battery-hybrid and fully electric vessels is now greater than that of LNGfuelled vessels. “The technology has advanced rapidly in just a few years, and there is mounting data to support the benefitcase for the use of energy storage,” says technology and LNG business development director Anthony Teo. “The success and safety of these projects, however, depends on understanding the key technical limitations, selecting the optimal battery technologies, and integrating them into the platforms and infrastructure network.” Those complexities were front of mind for offshore vessel owner Seacor Marine, the operator of the first hybrid-powered vessels in the Gulf of Mexico. The company completed the retrofit of its first OSV, Seacor Maya, to a hybrid diesel-electric

Offshore Support Journal | May 2019

38 | PROPULSION

solution last year. The battery system developed with system integrator Kongsberg Maritime and battery maker Corvus, is held in a 28-tonne, 20-foot container. It keeps generators from running more than necessary and at their sweet spot: between 75% and 80% of the maximum continuous rating. At higher power demands, the batteries are supplying power, and at lower power demands the generators are recharging the batteries, enabling the generators to run constantly near or at their operational load sweet spot. The vessel was converted at Bollinger Shipyards in

Morgan City, Louisiana, followed by sea trials in May 2018. The integration was completed within 90 days, reducing the vessel’s average fuel consumption by 20%. As a result of this performance, Seacor adapted three more vessels for service with plans to adapt an additional six. The programme won Seacor recognition as Shipowner of the Year at the 2019 Offshore Support Journal Conference, Awards & Exhibition in London earlier this year. Seacor’s investment makes up a large proportion of the hybrid vessel projects scheduled for 2019. OSJ

HYBRID OFFSHORE VESSEL PROJECT ORDERBOOK (APRIL 2019) INSTALLATION YEAR

PROJECT TYPE

VESSEL NAME

MAIN SHIP TYPE

VESSEL OWNER

COUNTRY OF OPERATION

2021

Newbuild

Keppel DB379

Semi-submersible drilling rig

Awilco Drilling Plc

Unknown

2021

Newbuild

TBN OHT CMHI

Heavy-lift crane

OHT

Unknown

2020

Newbuild

TBN

OSV

China

2020

Retrofit

SEACOSCO Danube

OSV

Shenzhen Maritime Bureau

2019

Newbuild

Sealoader 2 – COSCO Nanton DN 706

OSV

Seacor

Global

2019

Newbuild

WISS 16 Cemre Salt 0193 #2

Service operation

Cefront

Denmark

2019

Newbuild

Acta Centaurus

Service operation

Louis Dreyfus SAS

Unknown

2019

Newbuild

Hybrid Trimaran I – Veka Group

Crew transfer

Acta Marine

Unknown

2019

Newbuild

Hybrid Trimaran II – Veka Group

Crew transfer

World Marine Offshore

Unknown

2019

Retrofit

NS Frayja

OSV

World Marine Offshore

Norway

2019

Retrofit

NS Orla

OSV

Golden Energy

Norway

2019

Retrofit

Island Clipper

OSV

Golden Energy

Norway

2019

Retrofit

Rem Eir

OSV

Island Offshore

Norway

2019

Retrofit

Rem Hrist

OSV

Remøy Shipping

Norway

2019

Retrofit

Rem Mist

OSV

Remøy Shipping

Norway

2019

Retrofit

Stril Barents

OSV

Remøy Shipping

Norway

2019

Retrofit

Normand Server

OSV

Simon Møkster Shipping

Norway

2019

Retrofit

Normand Supporter

OSV

Solstad Offshore

Norway

2019

Retrofit

Normand Fortune

OSV

Solstad Offshore

Norway

2019

Retrofit

SEACOSCO Amazon/Anita Devi

OSV

Solstad Offshore

USA

2019

Retrofit

SEACOSCO Nile

OSV

Seacor

USA

2019

Retrofit

SEACOSCO Parana

OSV

Seacor

USA

2019

Retrofit

SEACOSCO Congo

OSV

Seacor

USA

2019

Retrofit

SEACOSCO Murray

OSV

Seacor

USA

2019

Retrofit

Seacor Azteca

OSV

Seacor

Unknown

2019

Retrofit

Seacor Viking

OSV

Seacor

Unknown

2019

Retrofit

Seacor Warrior

OSV

Seacor

Unknown

USA

Source: DNV GL Alternative Fuels Insight; Maritime Battery Forum, Riviera Maritime Media Notes: Excludes two retrofit projects for an undisclosed owner reported by DNV GL in 2019

Offshore Support Journal | May 2019

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40 | NOR-SHIPPING preview

Making offshore work greener, smarter and safer

Drone delivery can be significantly cheaper and more efficient than traditional launch-based methods (image: Wilhelmsen Ship Service)

Norway has a reputation for ingenuity in the offshore space and at this year’s Nor-Shipping event, which takes place in Oslo from 4-7 June, innovation will feature heavily

ortek will be among the Norwegian organisations showcasing their innovations at this year’s NorShipping exhibition. The company has developed precision instruments to measure movement underwater, with the technology applying the Doppler principle to underwater acoustics to measure water in motion, for example currents and waves. One application of this technology is Nortek’s Doppler velocity logs (DVLs), which are available with maximum operational depths ranging from 300 m to 6,000 m. These can be used on their own to estimate distance travelled and calculate current position via dead-reckoning navigation. The technology is based around acoustic beams oriented in a diverging, convex configuration. Velocity relative to the bottom of the ocean is measured by estimating

Offshore Support Journal | May 2019

the velocity along each beam relative to the bottom. By mounting a DVL on a vessel’s hull, it can function as a high-precision speed log. The technology also has applications for survey vessels. By connecting the vessel’s gyro and differential GPS and subtracting its speed over ground from speed through the water, the net ocean current speed and direction relative to the ground can be obtained. This impacts on some of the major issues faced by seismic and survey vessels. Currents crossing a vessel’s track can cause streamer and geophone deflection, so the ability to predict this allows precision positioning and the ability to determine the actual point of data acquisition. Nortek says the system will help reduce operational costs by limiting the number of extra runs required for in-fills. The process of turning a seismic rig around can take several hours and can have a hefty financial impact, given the high operational costs of survey vessels. On the same theme, knowledge of local currents can help avoid costly entanglements during deployment, handling and recovery of streamers Current meters are also helpful when carrying out socalled ‘4D runs’. This involves carrying out new surveys on existing reservoirs that often have existing installations in place to establish changes and remaining volumes. A current

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preview NOR-SHIPPING | 41

meter can help avoid collisions via the accurate prediction of the streamer path. Another Norwegian innovator in the offshore space is Scanreach, which has developed wireless sensor technology tailored to the maritime environment. The company’s technology is based around sensors which are able to transmit through steel, which may be placed in difficult-to-reach areas on board ships and offshore platforms. In its internet-of-things (IoT)-based In:Mesh network, individual microsensor nodes connect directly to multiple other nodes in the network, creating chains along which data can be transferred to a central control centre. Since April 2018, three successful pilots of this technology have been completed. Most noteworthy of these involved the integration of ScanReach’s technology on board North Sea Giant, the 180 m long, 10-deck OSV owned by North Sea Shipping.

OSVs up for awards

Among the Nor-Shipping awards this year, the offshore energy sector is represented by Salt-designed Wind of Change. This service operations vessel, being built for French owner Louis Dreyfus Armateurs by Turkey’s Cemre Shipyard, is among a shortlist of vessels up for Next Generation Ship Award. The vessel was previously recognised at the 2019 Annual Offshore Support Journal Awards, where Louis Dreyfus Armateurs received the Offshore Renewables Award. Wind of Change will be deployed with Danish energy company Ørsted in the Borkum Riffgrund 1 & 2 and Gode Wind 1 & 2 windfarms off the coast of Germany. As well as being Norwegian-designed, it incorporates technology from Norwegian companies, including a 3D motion-compensated crane from TTS Group. OSJ

Shore-to-ship drone delivery trialled on AHTS TYPE: Unmanned Aerial Vehicles (UAVs) MODEL: Airbus SN1 C1S Variant BATTERY TYPE: Li-Ion, removable from UAV for charging SIZE: 2.42m in diameter

Pacific Centurion, a Swire Pacific-owned AHTS, has received the world’s first shore-to-ship delivery made via drone in an innovative trial carried out by Wilhelmsen and Airbus Skyways in Singapore. The drone took off from Marine South Pier with a 1.5 kg parcel and navigated autonomously along pre-defined aerial corridors in a 1.5 km flight to land on Pacific Centurion’s deck at the Eastern Working Anchorage. The whole operation, comprising initial takeoff, delivery to the vessel and return to base, was carried out within a 10-minute span. The ongoing trial is currently focused on supplying offshore vessels at the anchorage 1.5 km from the Marina South Pier, but will gradually be extended to as far as 3 km from shore. The trial makes use of an Airbus Skyways delivery drone, which has a payload capability of up to 4 kg. Wilhelmsen Ships Agency commercial vice president

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MAX WIND SPEED FOR TAKE-OFF: 15 kts SPEED: 10m/s cruise

UAV WEIGHT: < 30kg LANDING TOLERANCE: ± 2.5m Landing Zone

Marius Johansen said: “Delivery of essential spares, medical supplies and cash to master via launch boat, is an established part of our portfolio of husbandry services, which we provide day in and day out, in ports all over the world. “Modern technology such as unmanned aircraft systems (UAS), is just a new tool, albeit a very cool one, with which we can push our industry ever forward and improve how we serve our customers” Wilhelmsen sees drone delivery as offering a cost effective, quick and safe means of delivering small, timecritical items, compared to traditional methods such as launch boats. It is less labour dependent, has a smaller carbon footprint and has potential to reduce delivery costs by up to 90%, says the company. The trial also incorporated another technology that could revolutionise the maritime and offshore world, as the drone was carrying 3D-printed consumables from Wilhelmsen’s onshore 3D printing micro-factory.

Offshore Support Journal | May 2019

42 | ROV/AUV

An autonomous future for offshore survey

The Sounder USV has an endurance of up to 20 days at a speed of 4 knots (image: Kongsberg Maritime)

Autonomous vehicles are proving their value in terms of speed, safety and, more surprisingly, environmental efficiency

n October 2018, Swire Seabed completed its inspection of Equinor’s offshore pipeline systems using a Hugin autonomous underwater vehicle (AUV); the process involved three pipelines between Kollsnes and Troll A. In total, 180 km of pipeline were inspected over two AUV dives. While a surface vessel was also present, its role was limited to providing positional updates to the AUV and acting as a communications relay with Swire Seabed’s Bergen HQ. Operated by Kongsberg technicians, the AUV acquired bathymetrical, synthetic aperture sonar and visual data as part of an operation to verify the continued integrity of the subsea pipelines. Swire Seabed has since ordered a Hugin AUV of its own, for

Offshore Support Journal | May 2019

delivery in 2020. Swire Seabed chief executive Arvid Pettersen said the order “demonstrates our long-term commitment to go beyond current industry needs and gear ourselves to meet future market demands through innovation and technology.” He continued: “We believe that the future of inspections and subsea survey is indeed autonomous and we are excited to be at the forefront of an evolving industry.” The 5.2 m AUV is containerised and capable of performing autonomous inspections on subsea assets and seabed mapping, while simultaneously acquiring, classifying, interpreting and reporting data. It will carry Kongsberg Maritime HISAS 1032 synthetic aperture sonar, an EM2040 multibeam echosounder and a CathX Ocean Colour camera and laser.

It will also have a Kongsberg Maritime automatic pipeline tracking system. Kongsberg Maritime continues to expand its offerings in the unmanned and autonomous vehicle segment with new offerings including the Sounder unmanned surface vessel (USV). A multipurpose platform, the Sounder is designed to work across different market segments including survey and fishery duties. It was developed as a joint venture with project partner Norsafe, chosen for its experience in the construction of vessels for operation in extreme environments. The Sounder’s operations are managed by the K-MATE autonomous surface vehicle control system, which was developed in partnership with the Norwegian Defence Research Establishment. The K-Mate system provides autonomous, supervised and

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ROV/AUV | 43

direct control abilities that allow an unmanned vessel to be programmed to follow survey patterns, autonomously follow AUVs, or track a mothership. A range of different sensor types can be mounted on the Sounder, including Kongsberg EM2040 multibeam echosounders for mapping and HiPAP positioning and communications systems for long baseline and AUV support. Other sensor types can also be integrated, while the payload can be rapidly changed as the Sounder’s 19inch rack hardware and hull-mounted moonpool are both removable. The system is also able to operate from ship or shore, and is compatible with launch and recovery systems. It has an endurance of up to 20 days at a speed of 4 knots. Kongsberg Maritime’s geoacoustics subsidiary has also brought to the market a compact USV that mounts a lightweight sub-bottom profiler. The GeoPulse USV has an operational range of up to 2 km and can access areas that more conventional systems are not able to, according to the company. It mounts Kongsberg Maritime’s GeoPulse Compact sub-bottom profiler, which has more than 100 decibels of noise-free dynamic range, enabling it to provide repeatable, high-quality data without the need for user-controlled analogue pre-processing. The system combines penetration and resolution to provide a clearlydefined return of sediment layers. It features adaptable digital processing and waveform-selection technology (2-18 khz), allowing for optimal power signatures, pulse shape and configuration for a range of survey tasks. Pulse forms available include frequency-modulated, continuous wave and Ricker. The GeoPulse USV has only 11% of the power requirements of earlier systems in the GeoPulse range. Its electric motors give it six hours of operational capability at a survey speed of six knots, and it has an interchangeable battery pack. It can be controlled from a laptop computer

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using GP1000 software, which is interfaced to the deck unit via an ethernet radio modem.

Battery-powered ROVs

Elsewhere, Texas-based Oceaneering recently received the Subsea Innovation Award, sponsored by Maats Tech, at the 2019 Annual Offshore Support Journal Awards. The subsea technology company beat stiff competition from UK-based Sonardyne International and Denmarkbased NKT to win the award, in recognition of its innovative batterypowered ROV system, known as E-ROV. Maats Tech director Lisa Edwards presented the award to Oceaneering’s ROV operations manager Arve Iversen, who said: “The concept is very daring … I would like to emphasise the importance of Equinor’s contribution. They believed in the concept and in us, making it possible to realise this as a commercial opportunity." The E-ROV is based around an eNovus work-class ROV with modified battery technology, optimised to handle peak power consumption and launched from a subsea garage that includes a cage-mounted 100-kW battery pack and tether management system. The eNovus has a 227 kg

Oceaneering’s ROV operations manager Arve Iversen receives the Subsea Innovation Award from Maats Tech director Lisa Edwards

payload and a depth rating of up to 5,000 m. It measures 2.7 m in length by 1.6 m in width and 1.8 m in height, with a weight in air of 3,400 kg. The E-ROV can operate for extended periods of time without the need for surface recovery and incorporates technologies such as machine vision learning and augmented reality. It is piloted using Oceaneering’s proprietary Remote Piloting and Automated Control Technology from one of the company’s Mission Support centres onshore, reducing or removing altogether the need for a surface vessel to remain on site. Connectivity is provided by a data/communications buoy that transmits ROV control data and live, high-definition video over 4G mobile broadband via securely encrypted VPN. The buoy itself features a highly engineered, robust mooring system capable of handling inclement sea conditions. The system produces efficiencies in a range of areas, including reducing vessel days required to complete operations, reducing the carbon footprint and enhancing the ability of operators to take advantage of favourable weather conditions. Norwegian energy giant Equinor, formerly known as Statoil, agreed in August 2018 to a three-year contract with Oceaneering for subsea inspection, maintenance and repair activities based around the E-ROV system. Under the terms of the contract, the E-ROV would be deployed in water depths to 1,000 m on the Norwegian Continental Shelf. Oceaneering’s origins lie in World Wide Divers, a Gulf of Mexico-focused diving company founded in 1963. World Wide Divers merged with two other diving companies in 1969 to form Oceaneering International. Since then it has expanded its offerings to include products and services that cover the full lifecycle of an offshore oil field, along with work-class ROVs, maintenance services, umbilicals, subsea hardware and tooling. OSJ

Offshore Support Journal | May 2019

44 | SAFETY

Learning from experience: the ongoing quest to improve safety A key element of effective risk management involves reviewing safety incidents to determine what went wrong and how to avoid a repeat instance

n the 12 months since OSJ's last in-depth review of safety in the offshore sector, the International Marine Contractors Association (IMCA) has published numerous safety flashes that summarise safety matters and incidents reported anonymously by its members. In its 2018 summary, IMCA noted 136 incidents had been published in 29 safety flashes, with 16 incidents reported by IMCA members and the remainder coming from government bodies, regulators and trade associations. IMCA now plans to begin using the International Association of Oil & Gas Producers (IOGP) ‘life-saving rules’ as a template for reviewing and categorising safety flash incidents. This involves

IMCA SAFETY INCIDENTS BY RELEVANT IOGP SAFETY RULE INCIDENT CAUSE

PERCENTAGE OF INCIDENTS

Bypassing safety controls

24%

Energy isolation

23%

Line of fire

19%

Dropped/falling objects

15%

Safe mechanical lifting

13%

Driving (persons hit by vehicles)

Hot work

Work authorisation

Offshore Support Journal | May 2019

in each case identifying the main life-saving rule that was not followed leading up to the incident. IMCA has identified a number of trends regarding safety, including: • 10% of incidents reported were ‘near misses’ – positive reporting of near misses and unsafe situations that were corrected before an incident occurred, is to be encouraged. • In 10% of incidents, equipment failure was an immediate cause. • In 7% of incidents, hand or finger injuries were sustained. • In eight incidents there were fires, two of which were laundry fires and three of which related to the inappropriate management of lithium-ion batteries. • In three incidents, injuries were sustained by persons transferring from one vessel to another whilst offshore. One fatality, which occurred during diving operations, remains under investigation. The incident occurred during the removal of a spool in 172 m sea water (MSW). Divers were working to relocate the spool to a wet store location when a series of events occurred that resulted in one end of the spool rising from the seabed in an uncontrolled manner. One of the divers’ umbilicals was caught in the lift-bag rigging, which caused the diver to ascend with the spool until the point at which its ascent was halted. The diver’s umbilical became trapped between the spool and a seabed structure, with the result that the diver lost his primary breathing gas supply. While the diver’s secondary life support was deployed and seemed to have operated correctly, it did not

IN 10% OF INCIDENTS, EQUIPMENT FAILURE WAS AN IMMEDIATE CAUSE”

prevent the fatality. While the investigation is still ongoing, the IMCA member reporting the fatality made a number of interim recommendations: • Risk assessments and planning should be carried out for all diving activities, including all key personnel involved in the work to be undertaken. Plans, comprising methodology and working instructions, should be documented, unambiguous, authorised and communicated to everyone involved. • Proper supervision must be applied to all aspects of the diving operations, including ensuring that risks involved, work to be done and emergency procedures are communicated to divers before starting work at the dive site and before each dive thereafter. • The dive site should be continuously monitored for changes to the task or conditions. If new hazards are identified, or control measures are found to be inadequate, work should be stopped and before it can be started again the situation should be reassessed and if necessary amended. • Individual and collective responsibilities in relation to the management of equipment safety lines,

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SAFETY | 45

tiebacks, lift bags and diver umbilicals should be reviewed and reinforced, as should every individual’s duty to apply the ‘stop work policy’. In a separate incident, an ROV control room container on the deck of an accommodation jack-up vessel caught fire. No personnel were injured, but the control room itself and the buoyancy fairing and chassis of the ROV were badly damaged. It was found that the container was not adequately fitted with fire protection systems, with one batteryoperated smoke detector and two portable fire extinguishers in place. The layout of the containers’ contents created a fire risk, including the presence of oily risks, which was not identified or managed during mobilisation or pre-use inspections, and there was no evidence of an audit or pre-mobilisation checklists being completed for the ROV system. Furthermore, a portable airconditioning unit in use within the container was not fit for purpose. The unit, which was fitted with a 13A fuse,

was connected to a 16A outlet using a British-to-M-type adaptor. It is believed an electrical fault from this connection is the most likely source of the fire. IMCA’s technical adviser Nick Hough noted the organisation has updated its methodology for the collection of safety statistics, and called for member companies to engage in recording incidents to get a better understanding of the role of cause and effect in safety management and safe working practice.

SOLAS amendments

Revisions to IMO’s SOLAS code will come into force on 1 January 2020, with important implications for vessel safety. One of these amendments, resolution MSC 402(96), which was adopted on 19 May 2016, relates to lifesaving equipment such as lifeboats and rescue boats, along with their launching appliances and rescue gear. Key elements of the amendment are as follows: • A full set of maintenance manuals and associated technical documentation

THE UNIT, FITTED WITH A 13A FUSE BUT CONNECTED TO A 16A OUTLET, WAS THE MOST LIKELY SOURCE OF THE FIRE”

must be kept on board. • An annual thorough examination and operational test must be carried out covering lifeboats (including free-fall lifeboats), rescue boats, fast rescue boats as well as release gear. Detailed checklists are given for operational testing of on-load and off-load release functions of davit-launched lifeboats and rescue boats, as well as free-fall lifeboats and the automatic release of davit-launched liferafts. • A five-year operational test of launching appliance winches is also required, with a checklist including posttest reinspection of stressed structural

MSC 402(96) details thorough test and inspection requirements for lifesaving equipment (image: Survitec)

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Offshore Support Journal | May 2019

46 | SAFETY

parts mandated where possible. Such testing must be carried out by certified personnel from either the manufacturer or an authorised service provider, and detailed guidelines are given as to how such personnel shall be educated and certified to carry out their duties. The revision permits multi-brand service providers to carry out such testing and maintenance across multiple brands. In anticipation of the SOLAS amendments coming into force, Survitec Group has launched a SOLAS 360 service aimed at helping shipowners and operators comply with IMO’s requirements. The concept behind this is the mapping out of a full inventory of a ship’s safety equipment, with management of due dates for services and inspections, alerting a vessel’s master and operator at 90-, 60- and 30-day intervals as the deadline approaches. Equipment covered includes liferafts, lifeboats and rescue boats, personal life-saving appliances such as vests, personal protection equipment, first-aid and medical equipment, emergency communications systems,

fire protection, detection and extinguishing equipment, and marine evacuation systems. Vessel-specific compliancy status and safety certificates are made available on demand to customers via an online portal. The requirement for vessel managers to source suppliers at ports, juggling factors such as pricing, travel charges, cost of spares and inspection coordination is removed, as a fixed rate dependent on equipment scope is agreed at the outset. Survitec offer development manager Finn Lende-Harung said: “We can provide and service all onboard safety equipment required under SOLAS, from liferafts and lifeboats, to personal lifesaving appliances and fire detection systems.” The offer is based around Survitec’s liferaft rental concept, whereby when a vessel’s liferafts are removed for inspection and maintenance, they are replaced with like-for-like fully serviced rafts, so that the vessel can continue on its itinerary without having to wait idle for several days while its original rafts are serviced.

A predictive approach to risk management

Ståle Hansen (Skuld): “We are sitting on a wealth of data that can be utilised to identify trends”

Offshore Support Journal | May 2019

Elsewhere, Norwegian P&I club and insurer Skuld has called for an intelligent approach to risk in the marine and offshore sectors. Noting that marine insurance contributes to sustainability through the avoidance of risk in terms of damage to people, property and the environment, chief executive Ståle Hansen said the company advocates a precautionary, predictive approach to help mitigate risk. Mr Hansen said: “We are sitting on a wealth of data that can be utilised to identify trends – for example, what sort of incidents cause casualties, which cause spills, what are the key threats that shipowners have to protect against. "When that data can be combined with data from other sources – whether that be from owners, AIS tracking, or

IMO SOLAS amendments coming into force on 1 January 2020 • Resolution MSC.402(96): Requirements for maintenance, thorough examination, operational testing, overhaul and repair of lifeboats and rescue boats, launching appliances and release gear. • Resolution MSC.409(97): Amendments to the International Convention for the Safety of Life at Sea, 1974, as amended. • Resolution MSC.404(96): Amendments to the International Convention for the Safety of Life at Sea, 1974, as amended.

authorities – we can refine its accuracy and predict risk with precision to deliver ‘on time’ advice. “This has the ability to reduce accidents and claims costs, save lives and lessen the environmental impact.” The initiative is under ongoing development by the company’s Strategy and Operations Department. Mr Hansen sees this ‘joined-up approach’ to risk management as a natural step forward for an increasingly digitised industry, especially given the move towards greater automation and eventual autonomy within maritime. Skuld is also expanding beyond traditional offshore oil and gas into offshore renewables and seabed mining, as part of a push to embrace broader ocean industries, Mr Hansen said, noting the company now covers “the majority share of construction vessels” and is developing its portfolio to insure turbines.” OSJ

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17-18 September 2019, Singapore

Last year’s Asian Offshore Support Journal Conference predicted that the industry was at the start of a new cycle of offshore investments with parts of the supply chain were already seeing improved margins. Rates for the OSV sector were forecast to significantly improve over the next five years. Delegates heard robust projections on rig deliveries and the number of OSVs expected to return from stacking. Join the region’s oil majors, owner/operators and supply chain 12 months on in Singapore to understand how the market has performed and to understand whether it’s on track – and what’s required to keep it on track – to realise the predicted investment and earnings. We’ll answer the key question: What’s required to position for success?

Highlights of the 2019 annual event will include: • Regional and global O&G market trends and opportunities • Emerging market opportunities in the region • OSV supply & demand analysis • Rig activity updates • Evolution of the OSV supply chain and its impact • Cost, resource and practical application in the reactivation process • Assessment of alternative fuels and propulsion systems • Evaluation of demand for Walk to Work, Offshore Wind and DSVs.

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48 | DAUGHTER CRAFT AND RESCUE BOATS

Designed for life: launching daughter craft in harsh conditions

The latest daughter craft and rescue boats feature robust designs and enhanced launch and recovery systems

he harsh conditions in the North Sea dictated the design of the davits selected by Esvagt to enable the launch and recovery of daughter craft for three of its upcoming service operations vessels (SOVs). The trio of vessels are being developed by Havyard Design & Solution and constructed by Havyard Ship Technology, with delivery scheduled for 2020-2021. Each vessel will be fitted with a PAP-16000 workboat davit with emergency launch capabilities, a PLRH-5000 SOLAS davit, two L-3500 life raft davits and a telescopic painter boom. The PAP-16000 is a single point davit with a safe working load of 16,000 kg that uses a docking head to fix the boat into position during lifting and lowering. It has been designed to handle Esvagt’s large STB12 safe transfer workboat, with capacity for eight technicians and one tonne of cargo, fully equipped. It has a lifting speed of 45 m per minute and is fitted with shock absorbers and a constant tension system, with additional support coming from the long-outreach telescopic painter boom that can provide adjustable tension on the painter line via its winch.

Offshore Support Journal | May 2019

The PLRH-5000 davit, meanwhile, is SOLAS-approved and will be used to launch and recover Esvagt’s STB7 safe transfer boat, with capacity for up to five passengers with hand-carry cargo. It can achieve lifting speeds up to 60 m per minute and is equipped with shock absorbers, a constant tension system and hydraulic guiding arms. Nexans’ flagship cable layer Nexans Aurora will be fitted with an innovative system of hydraulic cradles from Vestdavit to handle launch and recovery of its daughter craft. Instead of using overhead cranes, the vessel will use Vestdavit’s MissionEase multi-boat handling system. MissionEase works on a system of hydraulic cradles that move boats from stowage positions to maintenance, preparation and launch areas. The system order includes Telescopic TDB-5000 davits installed either side of the mission-bay, deck-mounted transfer rails and a cradle mechanism. It will handle several workboats and tug boats for launch and recovery on either side of the ship. A single operator can use a remote control to launch and recover the mission boat, along with all on-deck handling. Vestdavit’s system is suited for installation in boat hangars

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DAUGHTER CRAFT AND RESCUE BOATS | 49

The FRC Mk 3’s carbon-fibre construction gives durability at a low structural weight

as well as on open decks. In addition to the MissionEase system, Vestdavit will deliver two H-9000 davits, which can handle twin Fassmer SLT 8.5 life/tender boats. Nexans Aurora was designed by Ålesund-based Skipsteknisk and will be constructed by nearby Ulstein Verft. It will measure 149.9 m in length by 31 m in width and have capacity to accommodate 90 people. Its duties will include power cable laying and cable-system protection and trenching.

Carbon-fibre construction

Denmark’s Tuco Marine Group (TMG) is a manufacturer of compact, lightweight, robust workboats and daughter craft that it says offer significant advantages over traditional materials. The company’s ProZero construction method utilises carbon fibre materials that provide very high levels of strength and durability at a very low structural weight. These comprise a combination of glass and carbon fibre in a sandwich construction with PVC as a core material. TMG has carried out drop tests that have shown its

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materials have better energy absorption capacity than aluminium. Another advantage is that the ProZero panels act as a closed cell, meaning that in the event of damage to the vessel’s outer skin, water intake is confined and obstructed. In comparison, an aluminium panel would suffer full penetration.

The sandwich construction removes the need for internal stiffeners, thereby increasing useable space” Part-funded by the EU’s Horizon 2020 research and innovation programme for small- and medium-size enterprises, the ProZero project uses these lightweight construction materials to reduce weight, resulting in reduced fuel consumption and CO2 and NOx emissions.

Offshore Support Journal | May 2019

50 | DAUGHTER CRAFT AND RESCUE BOATS

This gives these vessels a larger operational range and the ability to travel at faster speeds. The use of PVC as a core material acts as a natural buoyancy reserve, as it is lightweight and does not absorb water. The sandwich construction, meanwhile, removes the need for internal stiffeners, thereby increasing useable space. TMG recently announced a super-compact 8 m vessel design, aimed at the service, subsea operations and diving markets. The design can carry up to six passengers along with a helmsmen, protected from the elements by a full cabin. Sturdy railings and bow access form an integral part of the deck layout, and the raised aft deck functions as a full-beam work platform. Light projectors are mounted on the aft deck to provide optimal illumination when operating in dark conditions. TMG’s design has been developed with daughter craft functionality in mind and it is equipped for single-point lifting. It can serve as an extension of its mothership to allow operations to be carried out in close proximity to offshore installations. As standard, the vessel is equipped with a single inboard diesel engine and z-drive propulsion unit. The company has also launched a subsea survey boat, boasting some innovative design features. The vessel’s hull is designed for efficient surveying, with minimal interference to sensitive measuring equipment. Ths design accommodates workspace for two subsea specialists along with a helmsman. This is achieved through recessing sonar equipment into

the hull structure itself to protect it from adverse conditions. The hull profile has been designed to reduce cavitation bubbles and the sweep-down of bubbles from the bow that could cause interference with the survey equipment. TMG enlisted Copenhagen-based Hauschildt Marine to carry out computational analyses to identify the best hull design prior to the vessel entering production A third-generation iteration of TMG’s ProZero fast rescue boat design has now been launched. Measuring 7.7 m in length with a beam of 2.86 m and a draft at full load of 2.36 m, the new design features a large deck area with capacity for up to 16 people and a maximum load of 1,310 kg. TMG has also incorporated new bow and fender configurations to improve safety during transfer operations. The standard propulsion setup is a single water jet option, but a twin installation is also available.

ERRVs move to Caribbean in support of BP

Vroon Offshore Services (VOS) Aberdeen has signed a multiyear, multi-million-pound contract with BP Trinidad and Tobago, to supply emergency response and rescue vessel (ERRV) services for BP’s operations in Trinidad and Tobago. The North Sea’s largest operator of ERRVs, VOS – part of the Netherlands-based Vroon Group – will relocate three vessels, VOS Fabulous, VOS Gorgeous and VOS Grace, to the Caribbean to support the contract. VOS Aberdeen managing director Craig Harvie said >>>

Esvagt’s new SOVs will use a single-point davit for launch and recovery of the STB12 safe transfer boats

Offshore Support Journal | May 2019

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DAUGHTER CRAFT AND RESCUE BOATS | 53

the contract will allow the company to build on a partnership it established last year, with an agreement to supply multiple ERRVs in the North Sea and west of Shetland for BP Exploration Operating Company Ltd. “The new contract and repositioning of three offshoresupport vessels also signals a strategic move into the Caribbean and South American market for Vroon Offshore Services, as we continue to assess further opportunities in the region,” said Mr Harvie. In terms of survivor recovery equipment, the three vessels have slightly different loadouts. VOS Gorgeous carries one Delta 15-person daughter craft launched from a Macgregor HMD G80 davit with an 8-tonne safe working load (SWL) and one Kossen 15-person fast rescue craft launched from a MacGregor HMD G40 davit with a 4-tonne SWL. Additional rescue and recovery facilities come in the form of a Dacon Scoop mechanical recovery system, two 5 m overside rescue zones, an emergency helicopter winching area, a six-person rescue basket, two searchlights and a selfdrenching capacity. VOS Fabulous has the same configuration, with capacity for additional rescue craft to be fitted on request; VOS Grace carries the same configuration but has helicopter winching areas forward and aft, and mounts four searchlights, two forward and two aft. >>>

VOS Gorgeous and sister vessels VOS Fabulous and VOS Grace will relocate to the Caribbean in support of BP

With an overall length of 50 m, VOS Fabulous has seats for 66 and bunks for 26 survivors and is fitted with rescue and daughter craft. Both VOS Gorgeous and VOS Grace have similar capacities for survivors but are slightly longer, at 60 m each, and have dynamic positioning class 2 capability. OSJ

The second edition of The Workboat Code includes guidance on stability for modern designs and workboat applications, such as crew and equipment transfer”

New UK Wokboat Code The National Workboat Association (NWA) has launched Edition 2 of The Workboat Code, a document that defines working practices and standards for workboat operators. It is 20 years since the first edition of the code was published in 1998. Like the first edition, the second edition was developed by a working group led by NWA in close co-operation with the Maritime and Coastguard Agency (MCA) and other partners, including class societies Bureau Veritas, DNV GL and Lloyd’s Register. The new code is mandatory for use on new workboats and pilot boats, with keels laid or in a similar state of construction on or after the publication date of 31 December 2018; it can also be used on pre-existing workboats and pilot boats. Existing workboats that choose to comply with the new code must do so as described by the code itself and in full and cannot meet a combination of secondedition standards and those of earlier codes or standards. When an existing vessel has new equipment installed or

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undergoes modifications, the standards of the code are to be applied as far as is practicable. It applies to small workboats operating to sea and all pilot boats carrying cargo or not more than 12 passengers or industrial personnel. Small workboats are defined as vessels being less than 24 m in load line length, or for vessels with keels laid prior to 21 July 1968, with a gross registered tonnage of less than 150. The code applies on UK-flagged vessels meeting this description regardless of location, and to non-UKflagged vessels meeting this description in UK waters or operating from UK ports. Revisions and additions to the code reflect changes in workboat operations in the 20 years since the first edition was published. New areas covered include updates to guidance on stability for modern designs, vessels engaged in towing, and workboat applications such as offshore wind crew and equipment transfer, along with carriage and transfer of hazardous materials.

Offshore Support Journal | May 2019

54 | DIGITAL SOLUTIONS

Kurt Roar Vilhelmsen (UniSea): â&#x20AC;&#x153;The problem is no longer access to data, but the fact that we are drowning in it"

DIGITAL SOLUTIONS | 55

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Savings are in the clouds as OSV owners benefit from going digital

Local server Serve content to vessel Sync changes to office

Central server Handle sync fleet requests Serve content to office

Onshore employee Works via internet browser

UniSea’s replication system ensures the operator only sees what they need to see

Cloud-based software brings savings to OSV owners, thanks to improved synchronisation between vessels and shore

INFORMATIONOVERLOAD, BOTH ONSHORE AND ON BOARD, IS A BIG PROBLEM”

www.osjonline.com

ew developments in the IT sphere, notably in terms of cloud portals, are saving OSV owners money, while speeding up their reporting requirements and increasing the efficiency of onboard operations. Using cloud-based solution, management information can be reliably synchronised between a ship’s servers and an online platform, allowing anytime-access by seafarers and fleet managers. One of the key elements to a successful, integrated cloud system involves having the right user interfaces in place to automatically adapt to the individual accessing the information. UniSea owner and managing director Kurt Roar Vilhelmsen explains that while information needs to be accessed by both onboard crew and shore-based fleet managers, they

do not necessarily need to view the same interface. In fact, a bespoke interface can improve efficiencies by showing only the data needed for a particular purpose or operator. Information-overload, both onshore and on board, is a big problem, as Mr Vilhelmsen says: “The problem is no longer access to data, but the fact that we are drowning in it.” To this end, UniSea has designed adaptable user interfaces for health, safety, environment and quality (HSEQ), operations and chartering software. Mr Vilhelmsen says that, put simply, “We did not want to overcomplicate the interface.” UniSea programs adapt the complexity of the user interface to the modules, depending on who is logging on, helping make workflows easier and more relevant for seafarers. This means the interface on a vessel

Offshore Support Journal | May 2019

56 | DIGITAL SOLUTIONS

will be different, and usually simpler, than the display in the same module for a shore-based manager. Using the example of the HSEQ module, which has simple forms for seafarers on board, but more detail for managers in the office, Mr Vilhelmsen says: “We needed to find ways to simplify reporting on vessels and ensure managers could access information rapidly. It is about the user experience, the user interface and improving flexibility.” While a captain on a vessel needs an overview of reports, including the status of vessel operations and management, the shore-based superintendent is likely to require a summary of reports, involving greater detail across the fleet under management. One of the big challenges for any fleet management software is ensuring that the information is current and timely. “It is about trusting that the data has no replications or conflicts,” says Mr Vilhelmsen. Hence the synchronisation and replication of data is key. “In a traditional file-based system, files are synchronised across the satellite link and things can go wrong if there are no checks on the data quality,” says Mr Vilhelmsen. But UniSea’s vesselbased servers communicate with the servers in the office or cloud. “They replicate reliable information with no conflicts,” he explains. The central server handles synchronisation, fleet requests and content to the office. Shore-based managers can then access data through an internet browser. The vessel server manages content for ship employees, synchronising data with the office.

Forms module brings savings to Olympic Shipping Olympic Shipping adopted UniSea’s forms and checklist module for its subsea vessel fleet. Olympic vice president of health, safety, environment and quality (HSEQ) Tonny Sordal says each vessel in the fleet uses 1,700 checklists each year. Savings in paper and ink for these forms was around £340 (US$447) per vessel per year, based on 20p (US$0.27) per form.

after the Piper Alpha offshore platform disaster in 1987. It helps prevent jobs becoming dangerous by, for example, stopping hot work near a gas source until the gas is switched off. However, there are a lot of forms to fill in. “UniSea’s [software] will adapt to the type of work and reduce the complexity of the form,” says Mr Vilhelmsen. This means workers do not need to sift through pages of nonrelevant forms, only filling in what is required. UniSea’s system includes permits for hot work, the use of dangerous substances, jobs in enclosed spaces, working aloft, crane operations and working overboard. Ongoing permit-to-work projects are displayed on a central screen for

Permit-to-work

Mr Vilhelmsen cites the UniSea onboard electronic permit-to-works system as an example of how software can replicate the paper-based process that offshore workers have used for years. The system manages offshore maintenance jobs, improving the clarity and amount of information about the work involved and the safety of a facility. Permit-to-work was introduced

Offshore Support Journal | May 2019

WE NEEDED TO FIND WAYS TO SIMPLIFY REPORTING ON VESSELS AND ENSURE MANAGERS COULD ACCESS INFORMATION RAPIDLY”

UniSea chief executive Kurt Roar Vilhelmsen believes these savings could be increased. “Cost savings are likely to be twice that when time savings are factored in,” he says. Indeed, Mr Sordal thinks time savings mount up to six days per vessel per year, based on the premise that each paper form would take at least five minutes more to fill in than the UniSea digital equivalent.

onboard managers to view, ensuring that parallel jobs do not cause a conflict or dangerous situation, such as a crane operation occurring on the same side of a vessel as an overboard working project. Elsewhere, UniSea has worked with Global Maritime to produce an electronic verification and testing module for OSV dynamic positioning (DP) systems. This enables seafarers to conduct aspects of annual DP trials on vessels prior to the arrival of a Global Maritime assessor. “At least half of the tests can be done by seafarers and the results sent back to Global Maritime for verification,” says Mr Vilhelmsen. “This means when Global Maritime comes on board they spend less time on vessels, reducing the costs as some tests are already done by the crew.” This functionality is linked to UniSea’s audit module and to the HSE module. Any incidents and findings can be reported to the International Marine Contractors Association for industry analysis and UniSea can also analyse DP trends. After a successful 2018, UniSea is now focussing on introducing a new version of its crewing module for monitoring and registering rest hours. It also intends to develop a module for reporting emissions from vessel fuel records and activities. OSJ

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DIGITAL SOLUTIONS | 59

Reduce operating expenditure through IoT

nternet-of-things (IoT) technology is being deployed on new vessels to remotely monitor performance and the condition of machinery. An example of this innovative approach to efficiency can be found in Damen Shipyards’ work with US-based Flicq, where it is deploying IoT on its newbuild connected vessels. Damen is using Flicq’s remote sensing platform, which incorporates algorithms, analytics and a sensor package to remotely monitor vessel operations and performance and provide condition-based maintenance. This is being incorporated into Damen’s digital platform, which aims to maximise the performance and reliability of the vessels it delivers. One of the first vessels to be connected with this digital solution is E-Two, an azimuth stern drive (ASD) anchorhandling and towage tug ordered by EMAR Offshore Services. It was

Digitalisation, power management and AI will improve vessel monitoring, energy efficiency and conditionbased maintenance

delivered in March and mobilised to China to tow a new barge to the Middle East, where both will be stationed for offshore and marine construction support. Damen project manager for innovation Solco Reijnders says: “The software tool we developed with Flicq can automatically gather and categorise data from every sensor on board a vessel.” This may include more than

2,000 points sending data to the bridge for display. Flicq’s smart sensors are selective about what is transmitted, as they can process data before sending it to a hub. For example, an engine temperature sensor sends data only if there is a change in temperature. Flicq systems have been installed on 45 vessels since Q3 2018 and both companies expect sensors will be installed on 165 Damen-built vessels this year. In a bid to optimise energy consumption on vessels, Siemens has developed a decision support system called EcoMain. The system gathers data from technical equipment via a range of interfaces on board and processes them into a standardised form. It then makes this data available on a common platform for analysis. Owners can use this information to control energy consumption, reduce emissions and manage maintenance cycles. OSJ

HOW ECOMAIN WORKS Energy

Modules

Emission

EcoMain

Fluids

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Documents

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Data collection on ship

Onboard systems

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EcoMain processes information from multiple vessel sub-systems for onboard and shore-side availability

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Offshore Support Journal | May 2019

60 | IMCA NEWS

Using safety statistics to improve working practices Technical adviser Nick Hough explains how updating IMCA's methods for collecting safety statistics has improved safety management and working practices

Nick Hough (IMCA): Member data is helping improve safety and benchmark performance

A member company that records statistics on safety observations understands the role of cause and effect in safety management and safe working practice and is to be congratulated”

afety is of paramount importance to IMCA and its members. At the start of the year when inviting all IMCA contractor members to take part in our annual safety statistics survey we introduced them to our new web-based dashboard. This has proved simple to use and provided members with an immediate bonus, as they can instantly benchmark their performance. The move from a spreadsheet to the web-based dashboard has had positive reactions. Many commented on how easy it was to submit their data, but also appreciated being able to quickly and easily judge their performance with that of similar-sized companies. Previously, they had to contact us in order to find out, in confidence, what their position was within their man-hour size band. Not only has the number of companies that have supplied statistics this year risen, so too has the number of man-hours reported. In 2018 (reporting on 2017) it was 562M; now for 2018 it currently stands at 658M (and rising). This could be due to the fact that our statistics are no longer collected in terms of ‘onshore’ and ‘offshore’ hours, but organised in ‘total hours’ worked, and ‘offshore hours’. Another change implemented this year was to focus on just the headline data and streamline the amount of information collected. We have removed the need for separate definitions for injuries (such as ‘restricted work day’, ‘medical treatment’ and ‘first aid’) instead using ‘Recordable Injury’ which is a widely understood and industrystandard term. Members are asked to record statistics for fatalities, for lost-time injuries (LTIs), and to give a total for recordable cases which includes fatalities and LTIs. Another important element in our annual

Offshore Support Journal | May 2019

collection of safety statistics is asking for statistics on safety observations. A member company that records them understands the role of cause and effect in safety management and safe working practice and is to be congratulated. As an industry we continually improve in reporting safety observations of all kinds, which can only be for the good. It is indeed better to be safe than sorry. In the past, IMCA members have been able to report LTIs but not necessarily report a cause. This year, all reported LTIs must be assigned to one of six causes: • Stored energy release – 29% • Slips and trips – 21% • Dropped/falling objects – 19% • Line of fire/caught between/struck against – 16% • Falls from height – 8% • Muscle stress and repetitive movement – 6% The emergence of “stored energy release” as the most significant cause makes it possible that many of the LTIs reported in previous years with no cause had this as a common factor. We will delve deeper into LTIs reported under this heading and produce suitable safety material to address it. Such material, along with good practice guidance, safety flashes, seminars and workshops, plays an important role in driving down LTIs and improving safety levels. As an example, a series of four ‘DROPS’ videos produced for Subsea 7, and kindly made available to IMCA for wider industry use is now available on our website (www. imca-int.com). In both 2017 and 2018 ‘dropped/falling objects’ were in third position on the LTI cause list, so it is vital to find new ways of attracting the attention of the entire workforce to make them aware of the dangers. OSJ

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