Driven by deepwater activity and demand for highspecification
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1 OCTOBER 2013 Offshore Drilling Fleet Takes Delivery of Five More Drillships SEPTEMBER 2013 Driven by deepwater activity and demand for highspecification assets, the number of active drillships in the offshore drilling fleet has more than doubled over the past decade, from 37 operating units in 2003 to 87 units in ABS continues to hold the largest market share in this sector with 52 of 77 units under class in the current drillship orderbook. Drillships account for a significant portion of offshore assets on order, and additional orders are expected this year. Another 18 units are scheduled for delivery by year-end 2013, 18 are expected to be delivered in 2014 and around the same number of units are on the horizon for So far in 2013, the rig fleet has taken delivery of five newbuild drillships, including the ABS-classed Seadrill West Auriga and West Vela, the Vantage Drilling Tungsten Explorer and the Noble Drilling Noble Globetrotter 2. According to analysts at Infield Systems, the current market represents a distinct peak in newbuilding activity to provide tonnage for remote drilling campaigns in deeper water. Further growth is expected over the next few years, with greater focus on developing next-generation compact drillship designs and consideration toward building a polar-class fleet for operations in Arctic and harsh environments. Photo cou rtesy of Seadri ll To subscribe to ABS Energy News online, please click on the Subscribe tab on the homepage of
2 NEWS Former BSEE Director Joins ABS James A. Watson, former Director of the Bureau of Safety and Environmental Enforcement (BSEE), joined ABS on 2 September as President and Chief Operating Officer of the Americas Division. In his new role at ABS, Watson will have administrative and operational responsibility for activity in North, South and Central America and the Caribbean. As Director of BSEE, Watson was responsible for promoting safety, protecting the environment and conserving resources through the regulatory oversight and enforcement of offshore operations on the US Outer Continental Shelf (OCS). James A. Watson He served as the US Coast Guard s Director of Prevention Policy for Marine Safety, Security and Stewardship, where his responsibilities included commercial vessel safety and security, ports and cargo safety and security and maritime investigations. Watson was designated the Federal On-Scene Coordinator for the government-wide response to the Macondo oil spill in the Gulf of Mexico in June By bringing Watson into the management team, ABS has added the potential to deliver even greater value to its clients, ABS Chairman and CEO Christopher J. Wiernicki says. Seajacks Selects ABS to Class Installation Vessel When UK-based Seajacks International made the decision to add a first-of-a-kind installation vessel to its fleet, the company looked to ABS for class services. waters and further from shore. These features will allow the Seajacks Scylla to meet the demands associated with working UK Round 3, Scottish territorial waters and the growing North West European markets. Seajacks signed a contract with Samsung Heavy Industries in Korea in 2Q 2013 to build the Seajacks Scylla, the world s largest and most advanced offshore wind farm installation vessel. The new rig will have more than 8,000 metric tons of available variable deck load and more than 5,000 square meters of usable deck space and will be equipped with a 1,500-metric-ton legencircling crane. It will be capable of speeds greater than 12 knots and will be outfitted with 105-m legs that will give the rig the ability to install components in water depths to 65 m. The jackup also will be capable of meeting the installation needs of jumbo-monopiles, jackets and turbines of future wind farms in deeper 2 Photo cou rtesy of Sea ajac ac ks/ Gus sto MSC ABS Energy News October 2013
3 USCG Issues FPSO Policy Letter NEWS With the demand for more complex offshore facilities at a record high, the US Coast Guard (USCG) has released a Policy Letter to provide guidance for regulatory compliance for floating offshore installation (FOI) and floating production, storage and offloading (FPSO) projects on the US Outer Continental Shelf. The Policy Letter identifies three optional classification services to assist with compliance. Luiz Feijo The Policy Letter uses concept-specific requirements from class rules as a baseline, and it identifies additional requirements related to lifesaving, firefighting and fireextinguishing equipment and electrical and piping systems. It also incorporates other recognized industry standards as part of the compliance framework. While the Policy Letter establishes alternative standards for the certification of FOI and FPSO design and equipment, the USCG confirmed that existing policies and procedures are still in place. The standing delegation of authority from the USCG to ABS maintains that ABS remains the only classification society authorized to act on behalf of the USCG. According to ABS Offshore Manager Luiz Feijo, the Policy Letter sets down a clear path that includes class as the basis for compliance. The USCG does not have technical requirements specifically tailored to FOIs or FPSOs; so determining the compliance matrix is normally challenging and can vary depending on hull shape, he says. Class societies, on the other hand, have developed specific requirements for each type of facility, which are based on experience and sound engineering practices. Global Gas Solutions Team Goes to Work Major new discoveries of gas resources around the world and the potential for wide-scale adoption of liquefied natural gas (LNG) as a marine fuel are leading to a dynamic shift in the global gas marketplace. To support this evolving market sector, ABS has formed the ABS Global Gas Solutions Team, which brings together a group of experienced gas professionals who will work alongside owners, shipyards and equipment manufacturers. Patrick Janssens will lead this organization as Vice President for Global Gas Solutions. Roy Bleiberg will fill the role of Director of US Gas Development, while Kurt Larsen will serve as Director of US Gas Operations and Performance. Overseeing programs in North, Central and South America, the Global Gas Solutions Team will report to Ken Richardson, Executive Vice President for Energy Project Development. An important area of focus for the organization in the near term will be the growing gas market in the US. Patrick Janssens Roy Bleiberg Kurt Larsen By leveraging our LNG and liquefied petroleum gas (LPG) capabilities and market experience, ABS has taken another step forward to help our clients navigate the unique characteristics, requirements and challenges facing the global gas industry, Janssens says. Photo courtesy of Seajacks/Gusto MSC ABS Energy News October
4 NEWS New Harsh-Environment Rig for Azerbaijan Caspian Drilling Company has responded to State Oil Company of Azerbaijan Republic s (SOCAR s) plans to expand its offshore drilling program by awarding a contract to Keppel Offshore and Marine to build a semisubmersible drilling rig purpose built for the harsh environment of the Caspian Sea. The contract was secured through subsidiaries Caspian Rigbuilders, an affiliated company of Keppel FELS, and Caspian Shipyard Company (CSC), Keppel s yard in Azerbaijan. Scheduled for delivery in the fourth quarter of 2016, the semisubmersible will be built to Keppel FELS DSS 38M design, which is an enhanced design of the DSS 38 rigs currently being constructed under ABS class in Brazil as part of the Sete Brasil rig-building program. The rig will be capable of drilling to 40,000 ft in 1,000 m water depth and will be outfitted with an 800-m self-contained eight-point mooring system designed to meet high wind speeds that may be encountered in the area. CSC will carry out the fabrication, integration, testing and commissioning work. The new Baku Shipyard, a joint venture between SOCAR and CSC, will undertake part of the fabrication work. Keppel FELS will provide engineering, procurement and technical support. Photo courte tesy of Kep pel FELS ABS opened its first Caspian office in Since then, the Kazakhstan and Azerbaijan flag Administrations have authorized ABS to act on their behalf. Authorization from the Turkmenistan flag Administration is in process. ABS Class Society of Choice at Dalian Shipbuilding In July 2013, ABS was selected to class four Friede & Goldman JU2000E self-elevating drilling units (SEDUs) to be constructed at Dalian Shipbuilding Industry Company (DSIC) in Dalian, Liaoning, China. The high-specification jackups were ordered by Seadrill Ltd., which now has ten newbuild SEDUs that will be built under ABS class at the Dalian yard. Two of the jackups are scheduled for delivery in 2013, five in 2015 and three in The demand for mobile offshore drilling units (MODUs) is surging in China s offshore sector. So far in 2013, Chinese yards have increased their orderbooks from 38 units in January to 64 units in July, with this increase edging China into the number one position for new MODU construction orders, according to an analysis published in the August issue of Clarkson s Offshore Intelligence Monthly. ABS has positioned itself as the premier offshore classification society in China, with contracts to class 86 percent of all MODUs under construction in China s shipyards. Pho hoto courte esy of Nob le 4 ABS Energy News October 2013
5 NEWS Vroon Exercises Contract Option In January 2013, Vroon Offshore Services signed two shipbuilding contracts with COSCO (Guangdong) Shipyard Co. Ltd. for the construction of two PX121 Platform Supply Vessels (PSVs) with an option for two additional units. When Vroon exercised that option in early September, its total number of PSVs under construction rose to ten, including six units being built at the Fujian Southeast Shipyard. According to Vroon, the new vessels represent an important step in enhancing the services provided to offshore clients. In addition, all of the newbuild PSVs will be delivered in 2015 and are expected to work offshore Europe. The PX121 PSVs being built at COSCO shipyard feature the Ulstein X-BOW, an advanced bow design that improves handling in rough sea and expands the vessel s operational window to include more harsh-weather environments. The shape of the bow also reduces power consumption and improves fuel efficiency. The 4,200 metric ton dwt PSVs will be 83.4 m long, 18 m wide and have a maximum design draught of 6.7 m/6 m with 850 m² of cargo deck area, deck load capacity of 2,300 metric tons and a top speed of 14.5 knots. All four of the new vessels will be ABS classed. Photo cour rtesy of Vroon Offshore Services Training Course Focuses on LNG as Fuel As a supplement to the ABS Guide for Propulsion and Auxiliary Systems for Gas Fueled Ships, ABS recently conducted a two-day series of training seminars in New Orleans, Louisiana, and Seattle, Washington, to educate shipowners, operators and personnel about the role classification societies are playing around the world in developing LNG as a fuel. With the shipping industry facing rising fuel costs combined with impending regulations aimed at reducing exhaust gas emissions, many of our clients were requesting advice or alternatives for meeting the MARPOL Annex VI emission requirements, says ABS Central US District Manager Brian Barton. LNG TRAINING COURSES LNG fueled marine propulsion systems are finding favor as an economically viable and longer-term technology solution, and ABS saw an opportunity to continue its external training initiatives by tailoring a course for the specific use in smaller craft servicing the US Gulf of Mexico, Great Lakes, coastal and inland waterways, he says. Brian Barton The ABS Liquefied Gas Carriers training course builds on an individual training session developed as part of a new construction program. Training modules feature topics ranging from LNG as fuel ship propulsion, ship arrangement and fuel containment methods to existing standards, regulations and review processes for gas fueled ships, to provide better understanding of the key market drivers and requirements related to this optional fuel. ABS Energy News October
6 TECHNOLOGY Investing in Nanotechnology ABS is continuing to invest in the next generation of research and development programs, and in the case of a joint development project (JDP) with George Washington University that involves taking a closer look at nanotechnology. A dedicated research team is profiling nanotechnologies in an effort to develop and test icephobic coatings to mitigate ice accretion. By profiling the surface at the nano scale, researchers can modify the contact angle for water droplets so they do not adhere. The value of this technology is that it could reduce the risk of ice buildup in Arctic conditions. The goal of this JDP is to develop a testing standard to evaluate icephobic coating performance that includes ice adhesion, abrasion resistance, durability and ultraviolet (UV) resistance. While this constitutes only the first small step, ABS strongly believes in the enormous potential for applying these new technologies. RULES & GUIDES ABS Published Enhanced Fire Protection Guide While current Rules and regulations identify certain mandatory fire safety arrangements for offshore installations, vessels and ships, fires and explosions continue to be one of the top safety hazards. In the interest of improving fire safety, ABS has released the Guide for Enhanced Fire Protection Arrangements. The optional enhanced fire protection notations in the Guide include EFP-A and EFP-A+ for accommodation areas; EFP-M for machinery spaces; EFP-C for cargo areas; and EFP-IA for industrial areas. Combinations of these notations can be awarded as well. One of the primary goals of the Guide is to provide criteria for notations that increase the level of protection against fires on board vessels, mobile offshore drilling units (MODUs), mobile offshore units (MOUs) and offshore installations. Another significant objective is to reduce the consequences of an onboard fire through specific measures for prevention, detection and fire extinguishing. While other classification societies provide fire safety notations, ABS is the first to address the industrial portions of offshore units to this extent. The Guide is the first such document to provide requirements to protect against the unique fire risks associated with the industrial areas of FPSOs. 6 ABS Energy News October 2013
7 New Guidance Addresses Accidental Loads RULES & GUIDES Conventional design criteria typically take into account variables such as wind, wave, current and weather conditions, but they do not include loads resulting from the accidental impact of moving vessels, dropped objects, fire or blast hazards. In developing the recently released ABS Guidance Notes on Accidental Load Analysis and Design for Offshore Structures, ABS engineers identified and assessed a range of accidental loading scenarios experienced by offshore oil and gas facilities. Although the team that developed the document recognized that a wide range of potential accidents exists, it focused on key events that can impact structural integrity and performance. The same conceptual process can be used with other accidental loading scenarios. ABS is the first classification society to use a stepped riskbased approach to provide comprehensive guidance within a single publication for assessing the structural consequences of a collision, dropped objects, fire and blast loads on offshore structures. This new document reflects a departure from the traditional approach to developing guidelines for offshore safety. The change in approach reflects the team s recognition over the past ten years that risk-based procedures can support and in some cases replace a prescriptive approach to addressing risk. ABS Releases Ergonomics Notations Guide The ABS Guide for Ergonomic Notations was developed to assist clients and the wider industry with practicing better ergonomics for improved health, safety, performance and productivity on board ships and offshore assets. The Guide features four notations. Ergonomics Topsides Design (ERGO TOP) assesses access compatibility between crew and topside structures. Ergonomic Enclosed Space Design (ERGO ES) covers compatibility inside the skin of the vessel below the main deck of either a ship or offshore structure. Ergonomic Valves Design (ERGO VALVE) considers access, orientation and use of operating and maintenance valves with regard to accessibility and ease of identification and use, as does Ergonomic Maintenance Design (ERGO MAINT), which is directed at access and use of maintenance locations (spaces, platforms and access aids). To drive better ergonomics in the shipbuilding process, ABS also recently completed a joint development project with Samsung Heavy Industries to identify practicable ergonomic criteria to augment ABS suite of ergonomic and safety guidance, as well as the yard s in-house human factors design guide, by identifying areas of opportunity and improvement. Together with various ABS Guides for habitability, the ergonomics notations fulfill many of the ILO Maritime Labour Convention requirements, which came into force August 2013 to regulate healthy and safe working conditions for marine and offshore personnel. ABS Energy News October
8 REPRESENTATIVE CURRENT PROJECTS Spars, TLPs & Semisubmersibles Bigfoot TLP Chevron 2013 P-61 Papa Terra TLP FloaTEC/Petrobras 2013 Gulfstar 1 Williams 2014 Jack/St Malo Semi Chevron 2014 Lucius Spar Anadarko 2014 Malikai TLP Shell 2015 Heidelberg Anadarko 2016 FPSOs & FSOs OSX 3 FPSO OSX 2013 P-63 Papa Terra FPSO Petrobras 2013 Spill Capture #1 & 2 MWCC 2013 Bering Sea ( Manora Field FSO) OMNI 2014 Cidade de Ilhabela SBM/QG/Mitsubishi 2014 Cidade de Mangaratiba MV24 MODEC/Schain 2014 Eagle Albany (Cluster 7 Field FPSO) Buni Armada/ONGC 2014 FPSO Xikomba (Relocation) SBM 2014 FSO Uote 1 OMNI 2014 Salamander Bualuang FSO Teekay/Salamander 2014 Scorpius (Bukit Tua Field FPSO) M3nergy/Petronas 2014 Cidade de Itaguai MV26 MODEC/Schain 2015 Multi Echo (Belida Field FSO) Multiline/ConocoPhilips 2015 Stones FPSO SBM/Shell 2015 Column Stabilized Drilling Units Urca Sete/QGOG 2015 Portogalo Sete/Petroserv 2016 Jackups Discovery Resilience Hercules/Discovery 2013 ENSCO 121 ENSCO 2013 Fortius ISPON 2013 Jindal Star Lamprell 2013 Neptune Lamprell 2013 Noble Regina Allen Noble Drilling 2013 West Oberon Seadrill 2013 Butinah Lamprell 2014 Coatzacoalcos Perforadora Central 2014 KS Orient Star 1 KS Drilling Ltd KS Orient Star 2 KS Drilling Ltd Marawwah Lamprell 2014 Prospector 3 Prospector Offshore Drilling 2014 Qarnin Lamprell 2014 Tasha PT Apexindo 2014 Alliance Driller 1 AOD 2015 Al Shuwehat Lamprell 2015 Cantarell 1 Grupo R 2015 Mercury Lamprell 2015 Yunuen PEMEX 2015 Drillships Maersk Viking Maersk Drilling 2013 Ocean Blackhawk Diamond Offshore 2013 Ocean Rig Athena Ocean Rig ASA 2013 Rowan Renaissance Rowan Drilling 2013 Ensco DS-8 ENSCO 2014 Opus Tiger #1 Opus Offshore 2014 West Saturn Seadrill 2014 Arpoador SETE 2015 NS Guarapari SETE/Odfjell 2015 ABS publications applicable to the offshore industry are available for purchase and/or free download directly from the ABS website at under the Resources tab, Rules & Guides section. 8 ABS Energy News October 2013
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