DNV Offshore Update No. 1 2010

RISK IN THEGULF OFMEXICO

Also inside:� Carbon capture and storage� Electric propulsion� DNV Houston

DNV Offshore UpdateInformation from DNV to the offshore industry No. 1 May 2010

Re-evaluating risk in the Gulf of Mexico

RE-EVALUATING RISK IN THE GULF OF MEXICO . . . . . . 4

TRANSPORT SYSTEM IN GOOD SHAPE. . . . . . . . . . . . . . . . 8

SESAM FLOATING STRUCTURES . . . . . . . . . . . . . . . . . . . . 10

BREAKTHROUGH GUIDELINE TO BOOST

CARBON CAPTURE AND STORAGE . . . . . . . . . . . . . . . . . . 12

VIKING LADY SHOWS THE WAY. . . . . . . . . . . . . . . . . . . . . . 14

SUSTAINABLE ELECTRIC PROPULSION. . . . . . . . . . . . . . 18

GROWTH THROUGH CUSTOMER FOCUS. . . . . . . . . . . . 22

DNV HOUSTON – A CENTRE OF EXPERTISE

IN THE ENERGY CORRIDOR . . . . . . . . . . . . . . . . . . . . . . . . 24

WELL INTERVENTION UNITS:

FASTER, DEEPER, CHEAPER . . . . . . . . . . . . . . . . . . . . . . . . 26

BUILDING COMMON GROUND . . . . . . . . . . . . . . . . . . . . . 28

PIPELINES OF THE FUTURE –

A DNV INNOVATION PROJECT . . . . . . . . . . . . . . . . . . . . . . 30

FLOATEC: INTELLIGENT ENGINEERING

FROM CONCEPT TO DELIVERY . . . . . . . . . . . . . . . . . . . . . 32

Sesam Floating Structures Growth through customer focus

Photos: ©Magne A. Røe: front, back, p3, p28

©Masterfile/Scanpix: p8 ©StatoilHydro: p11

©Svein Tangen: p16 ©Nina E. Rangøy: p21

©Alexander Wardwell: p25, p32

©The Image Bank/Gary Cralle: p29

CONTENTS

2 | DNV OFFSHORE UPDATE NO. 1 2010

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DNV Offshore Update

is a newsletter published by Det Norske Veritas.

It is distributed to DNV customers and stations worldwide.

© Det Norske Veritas AS

Please direct any enquiries to your nearest DNV station or

Offshore Update e-mail: [email protected]

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Editor: Magne A. Røe

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WE WELCOME YOUR THOUGHTS!

1004 22

DNV Offshore Update

Kåre Kristoffersen

Customer Service Manager

[email protected]

EDITORIAL

DNV OFFSHORE UPDATE NO. 1 2010 | 3

DNV OFFSHOREUPDATE

We are pleased to introduceto you some of DNV’s latestdevelopments within theoffshore area.

The big event this spring isthe OTC in Houston. DNV isactively supporting OTC withan exhibition stand as well aspresenting papers with theaim of meeting customers,establishing relationships andbringing forward someimportant messages to theindustry.

DNV has an ambitiousgrowth strategy within theoffshore business area. Weintend this growth to comethrough high focus oncustomer relations and build

up of strong local resourcecentres and being at theforefront of technology, toolsand standards in order tomeet the industry’s needstoday and in the future.

This magazine containsarticles that address someimportant issues facing theindustry, such as thereassessment of the riskpicture related to agingstructures in the Gulf ofMexico and thedevelopment of efficienttools for analysing anddesigning deepwaterfloating structures. We alsodiscuss alternative powerand fuel sources to reducethe world fleet’s

environmental impact. Newemerging demands havepushed operators of wellintervention units todevelop new technologies toimprove access to subseawells. This in turn hascreated a demand for moreefficient well interventionsystems. DNV has taken upthis challenge by revising itsclass rules.

DNV is going to furtherstrengthen its presence andcapacity in Houston and thenew Chief Operating Officerfor Division Americas,Elisabeth Tørstad is now inplace. Her main message is“growth through customerfocus”.

Having been responsible forthe offshore activity inHouston for many years upto 2001, I am happy to see astrong increase in thecapacity and services we areproviding from Houston aswell as from our other USoffices. Our goal is to furtherdevelop our impact on theindustry.

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DNV’s Charles McHardy performing surveys in Galveston.

Re-evaluating risk in the Gulf of Mexico

Aging infrastructure, fierce seasonal hurricanes and increased demand for deepwater development has caused many in the industry to take a fresh look at

enterprise and operational risk management in the Gulf of Mexico.

TEXT: GUSTAV HEIBERG

Managing risk for the offshore productionof oil and gas in Gulf of Mexico hasbecome increasingly complex issue. Acombination of harsh weather conditionsand aging equipment in the Gulf of Mex-ico has lead to integrity management chal-lenges, while offshore development indeeper and deeper waters requiresincreasingly sophisticated technology andrising costs associated with transportation,maintenance and repair. From an opera-tional enterprise risk management per-spective, managing these risks is critical.Rising long-term global demand for

energy has pushed exploration and pro-duction into deeper waters. This trend hascreated increasingly complex deepwaterfield developments. Other fields are devel-oped as tiebacks to existing infrastructure.Many of these fields require the capacityto manage pressures and temperatureshigher than ever before. Likewise, there are challenges related

to integrity management of assets forexisting infrastructure. Some of the oldestoffshore installations and pipelines in theworld are located in the Gulf of Mexico.Ensuring that systems integrity after hurri-canes such as Katrina, which destroyed 47platforms, sent six rigs adrift overturned ajack up and caused extensive damage to29 offshore installations in 2005, remainsa challenge.

ENTERPRISE RISK While often under-stood as a safety and environmental issue,risk management is also a critical compo-nent in making long-term strategic busi-ness decisions. For field development inthe Gulf of Mexico, operators must decidebetween building a new system or partner-ing with another operator to use an exist-ing system. At the same time, operatorsmust choose between platforms or FPSOsand subsea tieback solutions. Regardless ofthe chosen concept, the ability to keepproduction wells on stream is one of themost important factors determining theeconomic performance of a field. In deeper waters, subsea interventions

take more time and are more expensive.Furthermore, deepwater developmentsoften rely on new technologies, which maynot have been subject to extensive fieldtesting. Assessing the Reliability, Availabil-ity and Maintainability (RAM) become animportant step to quantify the costs associ-ated with well interventions and subsearepairs. The ability to carry out frequent well

interventions generally increases the oiland gas recovery rate. Due to reducedability/to do well intervention, subseawells generally have a lower recovery ratethan fixed installations with dry x-mastrees. Deepwater fields in the Gulf of Mex-ico are expected to have subsea x-mas

trees. Finding cheaper solutions for wellintervention, such as riserless wireline wellintervention units, is therefore one way ofincreasing recovery rate.

SUBSEA PROCESSING One solution cur-rently attracting a lot of interest is subseaprocessing. Subsea processing has thepotential to reduce the need for platformcapacity by moving some functions, such aswater injection and separation of waterfrom the well fluid to the subsea environ-ment, which reduces the need forpipelines. In some cases, subsea processingis required to be able to develop a field atall. Subsea booster pumps, water injectionpumps and subsea separation are currentlybeing developed tested and installed. Sub-sea gas compression is also under develop-ment. Finding the right platform concept is

also part of the business assessment. Mostof the deepwater platforms in the Gulf ofMexico are spars, semi-submersibles andtension leg platforms (TLPs). While oper-ators in other areas of the world haveopted to use Floating Production Storageand Offloading vessels (FPSOs), only oneFPSO is currently operating in the Gulf ofMexico.

NEW TECHNOLOGY New projects oftenrely on new technologies to be able to

GULF OF MEXICO


develop challenging fields. To manage riskand costs associated with installation, oper-ation and shutdowns during repairs, it iscrucial for operators to be confident thatthe technology installed is not only safe,but also will function as expected in a reli-able way. However, since new technology is gen-

erally not adequately covered by estab-

lished codes it must therefore be qualifiedby following a systematic process wherethe required functionality and reliabilityof the system is verified through testingand analyses. A guideline for such a sys-tematic qualification process is given byDNV-RP-A203 Qualification Proceduresfor New Technology.Failures due to hurricanes, corrosion,

leakage, impact, human error, inadequateinformation, variable pressures, lack oftimely information from control systemsand other issues can be addressed whenthe proper qualification method is identi-fied. A systematic risk-based qualificationprocess should be designed to reduceuncertainties and minimize risks whilemaximizing profit and ensuring safety andreliability

INTEGRITY MANAGEMENT By some esti-mates, costs related to maintenance, sys-tems modification and operation willincrease significantly in the years to come,representing up to 45 per cent of total off-shore expenditures by 2013. To managethese costs, operators should invest in anefficient integrity management system. To help operators manage enterprise

risk, ensuring the integrity of existing sys-tems is vital. A lot of infrastructure, suchas production systems and pipelines, areowned and/or operated by differentorganizations. And since offshore opera-tions have a long history in the Gulf ofMexico, any given segment may containparts of different ages and technical stan-dards. In addition, many offshore pipelinesystems are approaching the end of theirdesign life. For some operators, further develop-

ment of existing fields, infrastructure and


GULF OF MEXICO

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It is crucial for operators to be confident that the equipment installed on the seabed is not only safe, but

also will function as expected in a reliable way.

systems may be an attractive, cost-effectiveand environmentally sound alternative toinvesting in new field developments.However, business assumptions may bebased on tie-ins to existing infrastructure,which may soon represent unsustainablerisk of failure. As a result, these systemsmust be subject to intensive life extensionevaluations.

ORBIT Over the last two decades, DNV hasdeveloped a broad systems and tools foroperational follow-up. The system, knownas ORBIT, was first developed for pipelinesbut was later expanded to include a widerange of object and components, such as

risers, subsea installations and systems.ORBIT enables operators to develop sys-tems in compliance with regulatoryrequirements, consequence assessment ofa failure, assessment of threats to theintegrity and identifying the appropriateactions in order to reduce risk. Managing integrity risk requires a fun-

damental understanding of the infrastruc-ture and degradation mechanisms and acomprehensive and structured approachto various risk factors. For example, mostof the Gulf of Mexico infrastructure is notdesigned to operate during hurricanes, yetthe damage caused by recent hurricaneshas resulted in lengthy and costly delays,

with significant loss of revenue. Thisrequires efficient procedures for condi-tion assessment and repair.

PIPELINE INSPECTION Likewise, whileinspection pigging of pipelines is a goodway to assess the condition of a pipeline, itis not always possible due to flow condi-tions, pipe diameter or access to therequired equipment. And in cases where itis possible to carry out inspection pigging,there is always a risk that the pig can getstuck and creating a flow obstruction inthe pipeline. When considering an inspec-tion pigging operation it is always impor-tant to compare the risks to the benefits.

GULF OF MEXICO


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Pipelines are important parts of the offshore oil and gas infrastructure. Consequently it is important to evaluate the condition of the flowlines. This requires a

fundamental understanding of the degradation mechanisms.

Indeed, a large number of the gather-ing lines in the Gulf of Mexico have notbeen equipped with pig launchers andreceivers, making it impossible to do in-line inspection to assess the condition ofthe pipeline without major investmentsbeing made. Many of these flowlines aremade in carbon steel and the corrosionprotection philosophy is based on inject-ing corrosion inhibition chemicals. As aresult, the condition of pipelines dependson the level of process control and corro-sion inhibition reliability.Consequently it is important to evalu-

ate the condition of the flowlines basedon a limited amount of available data such

as process parameters and corrosion mon-itoring combined with a fundamentalunderstanding of the degradation mecha-nisms. In some instances it may be recom-mended to carry out inspections from theoutside using ROVs at specific points.The scale and increasingly complexity

of offshore activity in the Gulf of Mexico,combined with severe seasonal weatherconditions and aging infrastructure repre-sents a challenge for operators. Theserisks can not only effect safety and envi-ronmental performance, but threatenlong-term business objectives. Over thepast five years, the industry has worked todevelop more optimal performance assur-

ance programmes and has increased itsfocus on deepwater pipeline technology.However, as the long-term risk to offshoredevelopment in the Gulf of Mexicobecomes more clear operators are begin-ning to see the wisdom of investing moretime and resources in comprehensive riskmanagement programmes.

GULF OF MEXICO


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Figure 1 Different types of floaters and riser systems.

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Risers, floaters and mooring systems are technologically challenging parts of

the offshore oil and gas infrastructure. The interaction between moorings,

risers and floaters are complex. DNV is able to determine motions and loads

even under severe weather conditions using complex coupled analysis.

GASSCO


GASSCO


Transport system in good shapeNorwegian gas wouldn’t reach Europe without pipelines, so it is reassuring to

know that health checks of these 20 or so arteries have yielded positive results.

TEXT: GASSCO

“We’re pleased to say that the overall find-ings of last year’s inspection programmesconfirm that our pipelines are in goodtechnical condition,” reports Per AtleStrømme, vice president for the transportnetwork at Gassco. As operator, the com-pany is responsible for about 8,000 kilo-metres of pipelines with an estimatedvalue of NOK 160 billion if the system hadto be restored today.Like the Norwegian Police Security

Service (PST), Mr Strømme uses the con-cept of ‘threat pictures’ when explainingcondition management of the pipelines.“We use a risk-based methodology to

understand which threat pictures wecould face,” he explains. “That might becorrosion, for instance; trawl damage, or

collisions with anchors of the kind whichdamaged the Kvitebjørn-Kollsnes gas line.”Programmes for both external and

internal inspection have been established.Remotely operated vehicles (ROVs) areused to inspect underwater pipelines.Such work includes identifying free spanswhich are longer than the acceptance cri-teria.Internal checks are conducted with the

aid of pigs – instrument packages whichdetect corrosion and measure wall thick-ness. On land, cathodic protection andthird-party activities such as excavation areamong the targets for inspection work.“It’s also very important to monitor

what goes into the pipelines, and controlroom staff play an important role in that

context,” says Mr Strømme. “Good controlof hydrogen sulphide and dew point forwater means that we don’t need to carryout internal inspection as often as before.”All information from the inspections is

collected and summarised in the Orbit+Pipeline computer tool, which alsoincludes historical and design data for thevarious pipelines.“Together with suppliers and research

institutes, the industry has constantly im -proved its methods for design and condi-tion management of pipelines,” observesMr Strømme. “I don’t know of anyone elseworldwide who is better equipped to iden-tify and reduce threat pictures for thetechnical integrity of this type ofpipeline.”

GASSCO

is the operator for the integrated system for transporting gas from the

Norwegian continental shelf to other European countries. This role confers

overall responsibility for running the infrastructure on behalf of the owners.

www.gassco.no

ORBIT+ PIPELINE

is DNV Software’s new generation software for Pipeline Integrity

Management, designed in close cooperation with DNV Energy. Covering

both offshore and onshore pipelines, it is a fully multi-user and web-enabled

system for pipeline data management, risk assessment, inspection

management and aggregated management reporting.

Sesam Floating Structuresfrom hydrostatics to fatigue analysis

Sesam Floating Structures is a complete toolkit for performing hydrostatic,hydrodynamic and structural strength analysis. This leads to enhanced quality,

reduced software costs and reduced need for training.

TEXT: OLE JAN NEKSTAD

The lack of data integration between vari-ous software tools prevents efficient designiterations, as it is necessary to modify thevarious data models and perform re-analy-sis for each project revision. Furthermore,when different models are created, thedesign project is prone to quality prob-lems – in particular when the project set-up is based on a globally distributed work-ing environment.Using concept technologies in com-

puter-aided engineering has proven to becost-efficient in all life cycle phases, as thesame concept model can be used for dif-ferent complexities. Typically, the sameconcept model can be used to create dif-ferent analysis representations for hydro-static/dynamic analysis, global strengthanalysis, local ULS analysis and detailedfatigue analysis. The use of concept mod-elling enables fast design iterations inSesam, as modelling is carried out on thestructure level – as compared to tradi-tional modelling methods on a geometryor finite element level.By modelling your experiences – or

Best Engineering Practice – in a workflowmodelling system, it is possible to sharethese as templates to the entire organisa-tion. This leads to standardisation of workprocesses, reduced learning curve and thefacilitation of distributed work, resultingin higher quality.

PERFORM YOUR ANALYSES WITH EASE

Sesam supports the life cycle approach ofoffshore structures. This means that analy-ses may be carried out for the differentstages in a platform’s life. Common for allanalyses is that they are easy to carry out.

Either a rule-based approach (no integra-tion with hydrodynamic analysis) or adirect analysis approach (hydrodynamicloads automatically included) is used.There are no limitations to the analysismodels in terms of model size or numberof loadcases. The analyses are carried outusing highly efficient and robust solvers,enabling the use of standard hardware forlarge problems.A unique feature in Sesam is the possi-

bility to perform equilibrium analyses anduse the various floating positions withoutaltering any model in the hydrostatic orhydrodynamic analysis. Of equal impor-

tance is the ability to perform non-linearhydrodynamic analysis of offshore struc-tures to include typically pressure loadingto the varying sea surface level and to loadall wetted surfaces (green sea pressure).Analysis types supported are typically

global and local structural analysis, eigen-value analysis, forced dynamic analysis andpush-over analysis. Sesam has been knownto support distributed and concurrentengineering by using the super-elementtechnique. It is also very easy to performlocal refined analysis based on a globalanalysis model without the need for re-analysis of the whole structure.

CLOSING THE DESIGN LOOP Resultsassessment is a major part of the designprocess. This package facilitates an easyway to graphically or tabularly evaluateresults whether they are deformations,forces, stresses or fatigue life. 3D high-reso-lution pictures or tables for use in designreports may be created one by one or byuse of scripting techniques. Offshore struc-tures subjected to wave loads are normallyanalysed with a high number of loadcases.There are powerful features for combiningand scanning results to find the worst con-ditions.To document statutory compliance,

Sesam includes the most recent codecheck standards for hydro-stability analysisand structural analysis.Sesam Floating Structures contains

three main packages; the topside package,the hull package, and the mooring andriser package. The packages build on eachother – i.e. the functionality in one pack-age may be used in the next package.

SESAM FLOATING STRUCTURES


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Sesam Floating Structures is the perfect tool for

ballasting, hydrostatic and hydrodynamic analysis of

large floating structures such as barges, ships of any

type, semisubmersibles, tension leg platforms,

floating production storage units or spar buoys,

design of mooring lines and risers ranging from

shallow to ultra-deep water depths.


SESAM FLOATING STRUCTURES

“As the oil and gas fields get deeper, the installations of

deepwater platforms become more challenging. The coupling

effects between a floater and its moorings become more pro-

nounced and more important. Sesam is an excellent tool for

analysing the interaction between hull, moorings and risers.”

Andy Kyriakides, project manager, Modec International LLC.

Deployment of CCS has been hamperedby a lack of tailored regulatory frame-works and established industry practices.This was the key motivation for develop-ing the CO2QUALSTORE Guideline for Selec-

tion, Characterisation and Qualification of

Sites and Projects for Geological Storage of CO2.The guideline provides a comprehen-

sive and systematic process that covers thefull lifecycle of a CO2 storage project,from screening and site selection to clo-sure and transfer of responsibility from

the operator back to the national state,taking into account the unique character-istics of each potential site. The aim is toaccelerate the implementation of CCS byproviding a common, predictable andtransparent basis for decision-makingbetween project developers, operators andregulators.Project developers will benefit from a

procedural framework to select and man-age sites, delivering consistency and effi-ciency based on best engineering practice

and technology. Regulators can use theguideline to verify that sites have beenselected and assessed as suitable for geo-logical storage of CO2, following a stan-dardized and globally recognised proce-dure.Verified implementation of CCS proj-

ects in compliance with this guidelineshould also help provide assurance to thegeneral public that a storage site isselected based on a recognized process,will be safely and responsibly managed

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A new unified procedural framework will accelerate the implementation of carbon capture and storage.

Breakthrough guideline to boostCarbon Capture and StorageDNV and the energy industry, with valuable contribution from government agencies, havedeveloped the world’s most comprehensive guideline for safe and sustainable geologicalstorage of CO2. This unified procedural framework is intended for global use, supportingboth industry and regulators, and is a breakthrough that should speed up the large scale

deployment of Carbon Capture and Storage (CCS).

TEXT: SVEIN INGE LEIRGULEN

CARBON CAPTURE AND STORAGE


according to recommended practices forsustainable CO2 storage, and is in compli-ance with regulations, codes and stan-dards.According to project manager, Jørg

Aarnes at DNV: “The lack of tailored regu-latory frameworks for CO2 geological stor-age has threatened to delay large scaleadoption of CCS. In addition to providingincreased predictability for operators, theguideline will help governments to imple-ment internationally harmonised regula-

tory frameworks for geological storage ofCO2. We therefore believe theCO2QUALSTORE guideline is a realbreakthrough moment for CCS andshould provide a step-change in the paceof CCS deployment.”Jørg Aarnes further emphasises that

“while CCS alone will not solve the climatechange challenge, it is a necessary part ofthe global mitigation strategy. The world’senergy demand cannot be met in theshort term without continued use of fossil

fuels. CCS is the only mature technologythat may provide significant reduction ofCO2 emissions from combustion of fossilfuels, and is therefore a key bridging tech-nology to a renewable energy future.”Leading engineering, oil & gas compa-

nies and government bodies were broughttogether by DNV to develop theCO2QUALSTORE guideline 18 monthsago. The procedural framework that wasdeveloped mirrors best practices withinthe oil & gas industry, reflects existing andemerging regulations, standards anddirectives relevant for geological storageof CO2, and draws on learnings from R&Dand pilot CCS projects around the world.With the world of CCS developing rap-

idly, the CO2QUALSTORE guideline willbe updated periodically to keep pace ofchanges.Full copies of the guideline are avail-

able from www.dnv.com/co2qualstore

CARBON CAPTURE AND STORAGE


THE CO2QUALSTORE JOINT INDUSTRY

PARTNERSHIP

Members of the JIP are: Arup, BG Group, BP

Alternative Energy, Det Norske Veritas (DNV),

DONG Energy, Gassco, IEA GHG R&D Programme,

Petrobras, RWE Dea, Schlumberger, Shell, Statoil,

and Vattenfall.

The project was partially funded by the Research

Council of Norway through the CLIMIT programme

and was co-ordinated by DNV. A number of

government agencies have also given valuable

input to the development.

By some estimates, eighty-five per cent ofglobal trade is currently shipped by sea.And while shipping remains the mostenvironmentally safe way to transportgoods over long distances, the industryproduces about 1000 million tones ofCO2 per year, representing about 3.5 per-cent of global greenhouse gasses. Inaddition, the heavy fuels used to powerdiesel electric engines produce a broadrange of harmful substances, includingnitrogen oxides (NOx), sulphur oxides(SOx) and toxic particles.The industry has been criticized for not

acting quickly enough to manage theseissues, but rising public concerns and asurge in regulatory scrutiny has put pres-sure on shipowners and managers toreduce their impact on the environment.In addition, the rising cost of fuel has en -couraged many shipowners to seek outways to reduce consumption, and explorealternative energy resources.According to a recent study produced

by DNV (“Pathways to low carbon ship-ping: Abatement potential towards 2030”)the industry can reduce CO2 emissions 30percent below the baseline in a cost-effec-tive way by 2030. But according to TorSvensen, COO DNV Maritime, there is no“silver bullet” technology capable of solv-ing the issue overnight. “What we havehere is a model that looks at the potentialof a range of reduction measures, frommore efficient voyage execution to speedreduction, onboard fuel cells to kite sails,”he says. “If the shipping industry starts act-ing now and applies the available cost-effi-cient technologies, emissions can bereduced considerably, without incurringcosts.”Indeed, the study identified no less

than 25 emissions reducing measures,ranging from slow steaming to enginemonitoring, from the installation of con-tra-rotating propellers to onboard solarand wind-powered generators. Svensenestimates that if the industry utilized all

identified measures, it could cut carbonemissions by 60 percent. “The aggregatedeffect of all measures are significant andwill ensure an industry that operates in amore energy efficient manner and alsotakes its share of the common responsibil-ity of reducing carbon emissions,” he says. However, while shipping companies

may have the in-house expertise to man-age operational changes, such asimproved bunkering protocols, weatherrouting and trim optimization, many arereluctant to invest in unproven technolo-gies. And as the industry cycles through adifficult period, the industry’s focus islargely confined to reducing fuel costs,not investing in new technologies toreduce carbon emissions. In short, toencourage the industry to embrace amore proactive approach to managingemissions to air will require tougher regu-lations and proven solutions whichdemonstrate a measurable commercialbenefit.

Viking Lady shows the wayRising concerns over shipping’s role in climate change has put pressure on the industry

to develop alternative power and fuel sources to reduce the environmental impact of theworld fleet. As the first LNG-powered commercial ship equipped with a fuel cell adapted

for marine use, the Viking Lady may be part of the solution.

TEXT: ALEXANDER WARDWELL

VIKING LADY


“The FellowSHIP project has

demonstrated that LNG-powered

fuel cell technology can be suc-

cessfully applied to the marine

environment and that these tech-

nologies are fully compatible with

the normal commercial operation

of the vessel.”

Tor E. Svensen, DNV President

Launched in 2003, FellowSHIP is aJoint Industry Project (JIP) supported bythe Research Council of Norway, Innova-tion Norway, and the Eureka Network,including the German Federal Ministry ofEconomics and Technology. Partnersinclude DNV, the engine manufacturerWärtsilä, the Norwegian shipowner EidsvikOffshore, and the German-based MTUOnsite Energy, a leading developer of fuelcell technology. The environmentalgroup, The Bellona Foundation, also con-tributed. The purpose of the JIP was to develop

the industry’s first commercially viablefuel cell power pack capable of reducingCO2 emissions by up to 50 per cent andimprove energy efficiency up to 30 percent, compared to existing conventionalpower generators. If successful, the vesselwould represent an industry first. Fuel cell technology is not new, but

until recently, it had never been success-fully applied to commercial shipping. Fuel

cells convert fuels more efficiently thantraditional combustion engines and there-fore significantly reduce energy loss,harmful greenhouse gas emissions andlocal pollution. A fuel cell converts the fuel’s chemi-

cally stored energy directly to electricitythrough a reaction with oxygen in the air.The process is similar to that of an ordi-nary battery – except that a fuel cell doesnot need to be recharged; it operates aslong as it is supplied with a suitable fuel,such as hydrogen, LNG, methanol or bio-gas. Fuel cell technology also eliminatesemissions of harmful substances, such asnitrogen oxides (NOx), sulphur oxides(SOx) and particles.To succeed, FellowSHIP had to manage

a number of technical challenges. First,because fuel cell technologies can besomewhat sensitive, the team had todevelop a robust, reliable system capableof operating safely in a crowded machin-ery room while at sea, and in varying sea

conditions. Second, the vessel wouldrequire class approval of the completefuel cell system in order to operate safelyat sea – an industry first.Once manufactured, the system would

be installed aboard the Viking Lady, anOffshore Supply Vessel, owned and oper-ated by Eidsvik Offshore. Phase I of theFellowSHIP project included a feasibilitystudy, development of the fuel cell powerpackage adapted for marine conditions,and integrated with new electronic sys-tems, power electronics and control sys-tems. Since a gas-electric propulsion system

provides a perfect test-bed for the fuelcell, the project team decided on Lique-fied Natural Gas (LNG) as its primary fuelsource. By using LNG instead of heavyfuels, shipowners can eliminate the emis-sion of SOx and particles and reduce theemissions of NOx by almost 90 per centand CO2 by some 20 per cent. At present,LNG is not an appropriate source of fuel

VIKING LADY


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Viking Lady, the first CNG powered commercial vessel equipped with a fuel cell adapted for marine use.

for deep sea transportation, but for shortsea shipping, or trades within a fixed geo-graphical area, LNG represents a promis-ing alternative to heavy fuels. After years of development, the project

team produced a 320kw LNG fuel powerplant, and in 2009, the new system wastested and verified on shore. Later thatyear, the power plant was installed aboardthe OSV Viking Lady. Testing followed toensure the vessel was in compliance withthe stringent requirements for marinepower and sea-trails were a success. Today, the Viking Lady is on charter to

the French energy giant Total, operatingin the rough sea conditions of the NorthSea. Preliminary testing has shown thatcompared to a similar vessel powered by aconventional power plant, the Viking Lady

has reduced harmful NOx emissions by180 tonnes — an amount equal to annual

emissions from 22,000 automobiles. Inaddition, CO2 emissions have beenreduced by 20 percent. Additional testingwill continue until the spring this year, butalready, the project has exceeded expecta-tions.The Viking Lady is the first commercial

ship ever with a fuel cell specially adaptedfor marine use, and among the few vesselsfuelled by LNG. The fuel cell reducesemissions to air and fuel consumption andoperates very quietly – all significant for aship with frequent stops in busy harbourslocated in populated areas. But Svensen says that while the techni-

cal achievements of the project arenotable, the Viking Lady should not be dis-missed as an academic exercise in fuel celltechnology. “What is important here isthat the Viking Lady is meeting the com-mercial expectations of the owner and ful-

filling terms of its charter – all while sig-nificantly reducing harmful emissions,” hesays. “The FellowSHIP project has demon-strated that LNG-powered fuel cell tech-nology can be successfully applied to themarine environment and that these tech-nologies are fully compatible with the nor-mal commercial operation of the vessel.” Svensen is quick to acknowledge that

fuel cell technology and LNG-fuelled ves-sels represent only part of the solution tothe climate change challenge and thatsuch solutions are not yet appropriate forall types of vessels or all trades. But henotes that there are a broad range ofaffordable measures now available to theindustry to help manage climate change.“New regulations expected to come intoforce, combined with a rise in fuel costswill help make the case for action,” hesays. “And with fuel cell technology now aproven solution, shipowners have anotheroption.”Meanwhile, data collected from the Fel-

lowSHIP project will be a valuableresource to some shipowners seriousabout minimizing the environmentalimpact of their operations. “With theViking Lady, fuel cell technology has gonefrom a good idea to a practical, provensolution, and as project evolves, we expectto see the technology developed further,”he says. “It is not the answer, but it is partof the solution.”

VIKING LADY


››

The Viking Lady operational model at COP15 in Copenhagen December last year.

VIKING LADY

The Viking Lady was designed and built on the

west coast of Norway by Vik Sandvik (now

Wärtsilä Ship Design) and West Contractors.

The Norwegian shipowner Eidesvik Offshore took

delivery of the Viking Lady on 29 April 2009.

The ship is classed by DNV and is currently on

charter operating in the North Sea.

Specifications:

Length: 92.2m

Width: 21m

Depth: 7.6m

Gross tonnage: 6,100t

Dead weight: 5,900t

Berths: 25 persons

IMO no.: 9409675

VIKING LADY


The patented STADT STASCHO Sinusdrive technology was first delivered to theseismic research vessel “Sanco Star” ofNorway, operated by RXT. In this case thedrives were used for the full-electric mainpropulsion for the ship, driving 2 pro-pellers each 2500 kW. The first 18 monthsof operation offshore Brazil for Petrobras,has clearly demonstrated the qualities ofthe new system. STADT is now busy withnew projects, and has now also put in toservice the sister ship “Sanco Spirit” andthe two first full-electric Purse Seiners everbuilt in Norway, the “Harto” and the“Stokke Senior”.The company STADT AS in Norway has

developed the new product, STADTSTASCHO, over the past 7 years. STADT

has very long experience in developmentof Megawatt AC motor-drives for ship andindustry, as well as complete system inte-gration for diesel-electric vessels.The STADT STASCHO range now goes

up to 50 MW in voltages up to 15 kV,optionally also in higher voltage classesand even higher powers.The technology used in STADT

STASCHO is based upon IGBT transistorsand thyristors. The system is also workingas an integrated part of the CP propulsionsystem, where speed and pitch is con-trolled in an optimal way. The STADT sys-tem is totally integrated with the shipspropulsion plant as well as the power gen-eration system and its PMS. It has its ownconfigurable power controller, touch

screen and interface to other systems onthe ship. The system is normally aircooled due to its very low losses. Thismakes it easy to locate the drives in thecontrol room of the ship.The most interesting features of the

new patented drives are:

EXTREMELY LOW ELECTRIC LOSSES, lessthen 0,3 % at full load resulting in totalelectric system losses of only 5 to 6 % . Thesystem losses will be found in the electricgenerator, in the STASCHO and in theelectric propulsion motor. Knowing thatequivalent AC Drive systems based on i.e.12 pulse configuration has system losses inthe range 13-16 % - this new technologywill have huge impact on the energy con-sumption and emissions from the ships.

SINUSOIDAL TECHNOLOGY RATHER

THAN PWM. One of the reasons for theunique characteristics of the new STADTSTASCHO drive technology is that it isbased on bidirectional Sinusoidal voltageand current, both toward the driving elec-tric AC motor, and backward to the elec-tric switchboard. The basis of this newtechnology comes from the company NFODrives AB in Sweden, witch has developeda patented inverter that controls standardAC-motors with a pure sinusoidal voltageand current. The Sinus-technology givesmany advantages compared to the widelyused Pulse Width Modulation - PWM tech-nology, used by the vast majority of drivesmanufacturers in the world. The mostimportant advantages, is that Sinus doesnot generate any disturbances at all,enabling the user to use unscreened power

››

“Sanco Spirit”

Sustainable electric propulsionA new technology for speed and power control of larger machinery operated

via AC motor-drives has been launched to the shipping market.

TEXT: STADT POWER TECHNOLOGY

STADT POWER TECHNOLOGY


cables and standard AC motors withoutgetting problems typically found in PWMdriven applications, like machinery bear-ing damages and EMC related problems.PWM is a synthesized way of creating avariable frequency, for speed control of ACmotors. The high frequency pulse train inthis synthesized voltage is the root to manytypes of complex problems revealed bymany users that has experienced the tradi-tional frequency inverters through the lastyears. - AC motors was designed for Sinus,and works best with Sinus.For military projects, the Sinus technol-

ogy gives unique benefits. As an example,Kockums - Thyssen Krupp Marine Systemshave chosen this technology for theirapplications onboard the Visby class, astealth type of vessel with low noise signa-

ture. “We have not previously been able touse frequency inverters at all,” states Karl-Axel Olsson at Kockum. “All invertersinterfered with the sensitive equipment onboard and were therefore banned withinthe Navy.”- The NFO Sinus controlled drives

solved this problem.Sinusoidal control of AC motors can be

compared to the DC motor drives when itcomes to silent operation.The STADT Sinus-technology with no

electromagnetic disturbances and noacoustic noise is definitely a preferredsolution for a research vessel like “SancoStar”, since their job is to record sensitiveseismic signals into their huge onboardcomputer system. Also military andoceanographic research vessels that earlierwas forced to use DC motors, can nowchoose the more reliable AC motors incombination with STADT STASCHO.

FUEL- AND EMISSION-REDUCTION UP

TO 45 %. Although fuel costs are to livewith at the time being, we all know thatthese costs will increase again. Therefore itis important to plan for the future, andkeep the running costs for the ships as lowas possible. Fuel savings up to 45 % areachievable by using the STADT STASCHOin ship propulsion system. This is possibledue to optimal mode operation of genera-

tor sets, and the low-loss electric AC-motorcontrol for the propellers. Pollution fromNOX etc is reduced equally.

EXTREMELY LOW HARMONIC DISTOR-

TION - THD, typically 2-3 % in mainswitchboard. – A major achievement,realised without using the big transformersor filters that other systems is totallydepending on.The class requirements regarding THD

becomes more and more strict from yearto year.Earlier it was common practice to

design diesel-electric systems where theTHD could reach distortion levels above20 % in voltage inside the main switch-boards. Now the class says 5 %.



››

PWM in blue, SINUS in read

››

Propeller shaft-line at “Sanco Star”

››

Electric propulsion alternatives – loss considerations. The new way is shown above, the old way (PWM) below.

RELIABLE TECHNOLOGY WITH LONG

LIFETIME - A SUSTAINABLE SOLUTION.

Through the development of theSTASCHO, STADT has put great effort indesigning a converter system that can servewithout major maintenance for more than25 years. This has been possible by elimi-nating some of the components with lim-ited life time typically found in other PWMdrives. The technology is based on veryreliable components, as is now very wellproven at sea operations for long time. Thesystem is approved by DNV and NMD (TheNorwegian Maritime Directorate ).

A COMPACT SOLUTION. The fact that thebig power transformers is obsoleted in theSTASCHO drive system, results in a muchmore compact solution compared to com-petitors drives in 12, 18 or 24 pulse config-urations. The transformers can be very big,even bigger than the electric motor theyare supposed to feed. And their weight issubstantial as well.Even though the STADT STASCHO can

demonstrate major advantages towardsexisting drive solutions, the fact is thateven pricewise it is attractive.The new STADT STASCHO is expected

to be warmly welcomed in naval applica-tion, both for military and commercial ves-sels with gas – or diesel-electric propulsionsystems. The low losses will save fuel in allworking conditions for the ship, especiallyat high power. The difference from 15 %losses to 6 % is significant, and will resultin a new way of evaluating the way thatpropulsion systems for ships will bedesigned in the future.In Norway, it is reported that 95 % of

offshore vessels built last year, was diesel-electric. - New types of ships will mostlikely turn in to electric propulsion to saveoil and pollution, says Hallvard Slettevoll,president of STADT as.



PRODUCT FEATURES SINUS PWM

An energy saving product YES YESBut Electric System losses is very different 6 % 15 %

Standard AC motor can be used YES NO

Standard cabling to AC motor, unscreened YES NOPWM needs high voltage special cabling as well

Warranty against bearing currents in machinery YES NOPWM needs high focus on this issue

Guarantee against EMC problems YES NOSINUS means zero electromagnetic noise transmitted

No extra acoustic noise from motors YES NOPWM generates a disturbing noise in AC motors

Simple installation and wiring YES NOAircooled STASCHO with Sine waves saves costs. PWM is normally watercooled

Can be used in all types of sensitive environments YES NO

Very low harmonic pollution to main grid YES NOPWM requires big 12/18/24-puls trafoes or AFE to deal with this problem

Economical lifetime more than 25 years YES NOPWM inverters has components with economical lifetime of ~ 10 years

Compact size and low weight YES NOMainly due to the fact that STASCHO has no trafo or filters

Easy maintenance world wide YES NOPWM is a far more complex solution



DNV ULSTEINVIK

The local DNV office in Ulsteinvik participated in

the certification process during the manufacturing

of the STADT STASCHO Electric propulsion

converters at the STADT factory in Gjerdsvika.

DNV also offered assistance during the design

process to ensure compliance to DNV rules.

The installation of the system took place at the

Norwegian shipyard Vaagland, where DNV

followed the installation and commissioning of the

system, as well as the FMEA certification of the DP

AUTR system. THD measurements was verified

according to the class requirements.

››

STADT STASCHO as an integrated solution.

TECHNOLOGICAL COMPARISON

BETWEEN SINUS AND PWM DRIVES

PWM: PULSE WIDTH MODULATION,is a synthesized way to generate arti-ficial AC voltage. It contains a lot ofhigh frequency pulses and is a elec-tromagnetic noise transmitter. PWMis today used by most (>98 %) ACdrives manufacturers in the world.

SINUS: Patented proven technology byNFO DRIVES and STADT.

Growth through customer focusHouston, Texas, the fourth largest city in the United States, has been selected as the

main location for DNV’s Division Americas and Sub-Saharan Africa. Elisabeth Tørstad ismoving from Norway to Houston to be the COO and to head this new division.

TEXT: MAGNE A. RØE

“The re-organisation of our services inboth the Americas and the southernpart of Africa will bring us closer tothese important markets. Comingfrom a strong market position, I ampersonally very much looking forwardto capturing a larger share of thesemarkets. This will be achieved throughthe team efforts and customer focus ofa responsive and competent organisa-tion,” says an enthusiastic Tørstad.Elisabeth Tørstad has been with

DNV for 15 years, the last nine ofwhich have been spent in manage-ment jobs. Her position before becom-ing head of this division was as direc-tor of operations for DNV’s globaloperation in Cleaner Energy and Utili-ties. Her previous management posi-tions include head of the Pipelinesand Materials Technology Depart-ment, head of the Deepwater Technol-ogy and Technology QualificationDepartment, head of the StructuralIntegrity Section and group leader forMaterials Technology. A most appro-priate background for the Houstonlocation, where the DNV managementteam will also consist of Peter Bjerageras Director of Operation for the oiland gas market, Kenneth Vareide asDirector of Operation for the mar-itime market and Kim Mørk as Direc-tor of Operation for cleaner andrenewable energy. Ray Fales, theDirector of business development, isback with DNV after spending someyears outside of the company.“We are in Houston not only to put

our stamp of approval on documentsand systems but also to provide ourcompetence, services and expertise for

the benefit of our customers. Ourservices will be competence-based andHouston is an excellent hub for this.The geographical location is alsofavourable, with good connections toboth North and South America. Ourlocation in the Houston “Energy Cor-ridor” is also very positive - close toour customers and with an excellentcompetence and recruitment base forus. DNV’s role as an independentthird party is essential to our business.From this standpoint, we will expandour cooperation with both the author-ities and educational institutions, suchas our Top Tech programme at theUniversity of California, Berkeleywhich is a dedicated training programfor our top technical experts. Thepost-recession investments in the USeconomy within the areas of deepwa-ter oil and gas developments, carboncapture and storage and renewableenergy will provide excellent businessopportunities for us, based on ourstrong position in these market seg-ments,” says Tørstad.

CUSTOMER FOCUS “Relations andmore relations – these will be the keyfocus for our customer service man-agers and managers throughout theorganisation. As we are a serviceprovider, we must ensure that we buildrelations and are there when businessopportunities arise in our traditionaland new markets. Building relationswill take time and must be done closeto changing markets and customerneeds. We are also in close proximityto our biggest US-based competitor(ABS), which I view as both an oppor-

tunity and a challenge,” says Tørstad.“We are developing our resources witha strong local and international man-agement, and we look forward to cap-turing larger parts of the market andbuilding success for our customers andourselves.”

LATIN AMERICA AND AFRICA “Theexpansion in Latin America is anotheropportunity for us, and we are doingvery well - especially in Brazil with thenew offshore activities there followingthe huge offshore oil and gas finds.The Rio office will be expanding toserve the markets over the next fewyears and DNV’s complete competencebase will be needed to serve ourimportant customer base here. Wemust adjust to local demands and cando so by linking our customer serviceoperations to DNV’s complete compe-tence base. “Finally,” says Tørstad, “we will con-

tinue to grow in Sub-Saharan Africafrom our hub in Durban, South Africaand our strong presence in Angola.The offshore activities here are con-stantly increasing and we are growingwith the market. The relations withthe offshore business here are stronglyrelated to the Houston- and Rio-basedoil and gas activities as well as tostrong relations with the Chineseinvestments in Africa, so working onthis in cooperation with DNV inShanghai will also be important. Inthis truly global setting, where Africancountries work closely with the US,Brazil and China, we must strengthenour focus and make use of our advan-tage in being a global company.”

ELISABETH TØRSTAD


ELISABETH TØRSTAD


››

Elisabeth Tørstad is the COO and head of DNV’s new Division Americas and Sub-Saharan Africa.

DNV Houston – a centre ofexpertise in the Energy Corridor

Located in Houston’s Energy Corridor, DNV’s expansive new offices will serveas the headquarters for the organisation’s activities in the Americas and sub-Saharan Africa, providing leading technical expertise and a broad range of

services to the energy and maritime industries.


While DNV has been active in Houstonand the Americas for decades, risingdemand for the organisation’s services hasresulted in strong growth. Recognising aneed to expand its presence in thisdynamic region, DNV signed a long-termlease for a large building in Katy, Texaslast year and announced on 1 April 2010that the site would serve as the organisa-tion’s divisional headquarters andapproval centre for the Americas and sub-Saharan Africa. Today, the new offices arehome to about 150 personnel with theexpertise and in-house resources to pro-vide a broad range of risk managementservices. Led by Elisabeth Tørstad, who has

extensive experience in cleaner energyand offshore, pipeline and materials tech-nologies, DNV’s new offices will not onlyserve as the headquarters for DNV’s newdivisional set-up but also enable theorganisation to improve its customer focusin Houston’s dynamic energy, offshoreand maritime segments. “In addition toquality classification services, DNV haslong been recognised for its technicalexpertise,” she says. “This allows us to pro-vide advanced risk management services,which we can tailor to meet the specificrequirements of local companies.”In addition to providing risk manage-

ment services, DNV Houston also acts asan approval centre and an industryresource for valuable information, rangingfrom the impact of new regulations to crit-ical emerging safety and environmentalissues. “Part of our role is to produce,

analyse and share information that isimportant to the industries we serve,” shesays. “At the same time, our role in organ-ising various committees enables us to lis-ten to the concerns of industry playersand align our services more closely withtheir demands.”

A FOCUS ON CUSTOMER SERVICE

Ray Fales, DNV’s Market and BusinessDevelopment Director, says that whileDNV has earned a strong reputation inHouston, the organisation is facing somereal challenges. “We are not the biggestclass society in Houston, which means wehave to be a little bit better to win the trustof new customers,” he says. “We haverealigned our business to improve the cus-tomer experience and prioritised thedevelopment of services that genuinelyadd value, but we still have some work todo.” Fales explains that, in addition to the

development of new, more targeted classnotations, DNV is working to improveresponse times. “While we will continue tobenefit from DNV’s class developmentresources in Norway, we now have the in-house expertise and technical competenceto handle just about any request,” he says.“We don’t have to worry about time-zonesanymore.”

OFFSHORE & MARITIME KennethVareide, who is responsible for DNV’sactivities in the maritime and offshore sec-tors, says that the organisation’s expandedpresence and recent years’ success in

Houston are changing the market’s per-ceptions. “In the past, we have sometimesbeen viewed as a classification societyheadquartered in Europe and we occasion-ally lost opportunities to local class soci-eties,” he says. “We have now turned thisaround and demonstrated that we havelocal capabilities and expertise that canmake a significant difference to Americanindustry – not only as a classification soci-ety but also as a quality risk managementcompany to ensure safe and sustainablebusiness performance.” Vareide points out that DNV’s remark-

able global success in offshore class in thepast five years has enabled the organisa-tion to build strong capabilities and a sig-nificant track record in Houston. Heemphasises that this has been based onDNV’s understanding of safety and assetrisk management for units operating inchallenging environments and deepwaters. “We don’t view classification as acommodity but instead as an integral partof an overall safety and asset risk manage-ment philosophy,” he says. “And with thetrend towards more deep and ultra deep-water subsea developments in remotelocations, we are well positioned for themarket opportunities that lie ahead.” While he acknowledges that DNV has

not historically had a strong presence inthe jack-up and offshore service vessels(OSV) segments in the Gulf, Vareide isconfident that with the renewed focus oncustomer service, strong technical capabil-ities and continuous development of newor revised optional notations, such as the

DNV HOUSTON


DNV Silent notation for well interventionunits and OSVs, the organisation is wellpositioned for growth. “It’s an exciting andchallenging market, but we’re here to pro-vide the alternative that companies arelooking for,” he says.

ENERGY DNV’s Regional Manager(Energy), Peter Bjerager, says that the USenergy market is undergoing rapid change.“Developments in the US economy haveled to a new focus on cost and, as energyinfrastructure continues to age, we haveseen greater demand for SHE and assetrisk management services,” he says. “At thesame time, rising public and private invest-ment in cleaner energy technologies isdriving developments in wind, solar andtidal power generation and carbon capturetechnologies.” Worldwide, DNV has about 800 person-

nel dedicated to serving the energy indus-try, and about half of these are in NorthAmerica, providing services related to assetmanagement, technical verification, riskmanagement consulting and corrosionanalysis. Bjerager says that DNV’s expertisein onshore and offshore pipeline corro-sion issues has been a genuine advantage.Indeed, DNV has a global network ofmaterials technology and testing laborato-ries, including a state-of-the-art facility inDublin, Ohio that specialises in research,testing and failure analysis. The lab, whichhas electrochemical and mechanicalinstrumentation, autoclaves for high pres-sure and temperature exposure, flow-test-ing equipment, safety systems for H2S(and other poisonous gas) exposures andother tools, is perhaps the best in theworld. “We have the resources – we justhave to get better at communicating ourskills to the market,” says Bjerager.DNV Houston’s management team

agree that raising the organisation’s pro-file in the Energy Corridor will not onlyattract new local customers but also helpDNV strengthen its reputation in globalmarkets. “It is not by accident that Hous-ton is called the Energy Capital of theWorld,” says Tørstad. “and in Texas, sizematters.”

DNV HOUSTON


“We have realigned our

business to improve the cus-

tomer experience and priori-

tised the development of

services that genuinely add

value.”

Ray Fales, Director Market

and Business Development,

DNV Houston

“We don’t view classification

as a commodity but as an

integral part of an overall

safety and asset risk man-

agement philosophy.”

Kenneth Vareide, Regional

Manager, Offshore &

Maritime

“Developments in the US

economy have led to a new

focus on cost issues and

more demand for SHE and

asset risk management serv-

ices.”

Peter Bjerager, Regional

Manager, Energy

Well Intervention Units: Faster, deeper, cheaper

Rapid technological and market developments in the offshore industry over thepast five years have put pressure on class to develop rules and notations for a

new generation of specialised well-intervention offshore vessels.

TEXT: PER JAHRE NILSEN

Driven by insatiable global demand forenergy, subsea exploration and well con-struction has experienced a boom in thepast decade. According to consultantsInfield Systems and Douglas Westwood,the total number of subsea wells will bal-loon to more than 5,500 by the end of2010. While some projects may be delayedin some areas due to financing issuesrelated to the global financial downturn,the rapid construction of new wells islikely to continue, if not accelerate, in theyears to come.This remarkable growth has created

challenges for energy companies and sup-pliers alike. Increased demand for energyhas forced many energy companies to re-evaluate stranded or marginal fields, workin deeper waters, use more complex tie-back solutions and improve recovery ratesfor aging wells, which are about 10-20 percent less than platform wells. These emerging demands have pushed

operators of well intervention units todevelop new technologies to improveaccess to subsea wells, creating a demandfor more efficient subsea well interven-tion systems, including Riserless LightWell intervention (RLWI) units. Whilenot appropriate for deep water, RLWIunits are optimal for repair, scaleremoval, installation and manipulation ofsome equipment (such as valves, plugs,screens etc.), re-perforations, zone isola-tion, fluid sampling, PLT, chemical treat-ment and well abandonment, amongother services. In the past, this work was performed by

mammoth, slow-moving semisubmersible

drilling rigs, but developments in dynamicpositioning systems, ROVs and onboardsystems on smaller, mono-hulled vesselswhich can move quickly from one well tothe next, helping to reduce charteringcosts and improving well recovery rates byup to 50 percent. Riser well interventionunits are still preferred for some kinds ofwork and in depths below 500 meters, butnew composites now being developed forwire lines may soon allow RLWI units towork in deeper waters.

A VESSEL OR AN OFFSHORE UNIT? Thefirst monohull well intervention unit (Sea-well) was built in 1986 by WellOps. Theconcept proved a success, and over thenext ten years, demand for LWI units grew.However, because these units are oftensimilar in design to Offshore Supply, Sup-port or Multi Purpose vessels, there wasuncertainty on how to class them: Are theyvessels or mobile offshore units? Based on its extensive experience in

the North Sea offshore industry (home toabout 40 per cent of the world’s subseawells) and other regions, DNV movedquickly to manage these issues. Accordingto Per Jahre Nilsen, DNV’s Business Devel-opment Manager (Well Intervention) thedevelopment project, which began in2007, created some unique challenges. “At the time, there wasn’t a lot of useful

data out there to help us develop the rightapproach,” he says. “But based on ourexperience, technical research and feed-back from the industry, we concluded thatif the unit is capable of taking control ofsubsea equipment, such as opening or

closing valves on a producing well, itwould be classed as offshore, not mar-itime.” Nilsen says that these criteria are con-

sistent with the way many national authori-ties differentiate between offshore opera-tion and maritime ships/vessels operationand notes that Mobile Offshore Develop-ment Units (MODUs) code complianceapplies to offshore. Once developed, thenew rules were then submitted to externalhearings for review and comments weresolicited from owners and operators.

UNIQUE OFFERING At present, DNV isthe only class society offering the WellIntervention Unit class notation. Andbased on experience gained by developingthe new rules, DNV released a new,optional notation known as WELL Inter-vention in October, 2009. Nilsen says that defining the parame-

ters for a mandatory class notation forwell intervention units required anexhaustive review of different technicalelements and a broad range of safety prin-ciples, which covered ventilation, areasclassification, shut down & gas detection,escape, evacuation and communication.The organisation sourced in-house expert-ise on structural design, which took intoaccount substructure and foundations forwell intervention equipment and drillfloors when applicable. Other issuesincluded fire protection, dynamic posi-tioning, and a number of supplementaryrequirements, ranging from gas treatmentin the event of a leakage to rescue laddersin the moon pool.

WELL INTERVENTION UNITS


Nilsen explains that the scope theWELL class notation include design verifi-cation of the well intervention equipmentand systems and survey and follow up dur-ing fabrication. Once completed or certi-fied, the equipment will follow traditionalclassification principles and be inspectedon a regular basis. “By introducing the new voluntary

WELL class notation together with therevised and mandatory Well InterventionUnit notation, DNV was able to offer own-ers and operators of well interventionunits the same options that owners ofdrilling units have had in the past,” saysNilsen. “We believe the WELL class nota-tion will gain recognition as a mark ofquality — an assurance to charterers thatthe vessel follows internationally recog-nized standards for well interventionequipment.”Today, DNV has issued certification for

six well intervention vessels, includingfour optional WELL notations for a num-ber of subsea services companies. Whilethe commercial benefits for owners sailingwith the optional WELL notation is diffi-cult to measure, some well interventionunit operators are hopeful the notation

will not only ensure the safe operation oftheir vessels, but help their bottom line.

EARLY ADOPTER One early adopter ofthe new DNV rules was Aker Oilfield Serv-ices. Established in 2006 to meet the rap-idly growing global demand for services tosubsea fields, the company offers fully inte-grated services ranging from subsea instal-lation and completion to advanced wellintervention operations provided by thecompany’s state-of-the-art monohull wellintervention units. The company’s ambi-tious newbuilding programme will allowAker Oilfield Services will provide subseaintervention, light drilling, and riser andriserless well intervention services. Alf Kristensen project manager for

Aker Oilfield Services, says that the com-pany has two well intervention unitsclassed by DNV – the newbuild SkandiAker, and its sister vessel, Skandi Santos,now under charter with Petrobras inBrazil. “While there are many componentsto winning a contract, we felt the DNVnotations gave us an advantage over com-peting oilfield services companies,” saysKristensen. “The DNV notation helpedstrengthen the charterer’s confidence in

our offering and is consistent with ourfocus on reliability and advanced technol-ogy.” While the Skandi Santos and Skandi

Aker are well intervention units and willwork without risers, Kristensen says DNVworked to modify the optional WELLnotation to fit their needs. “We recognizeincreased demand for well intervention indeeper water where there is a need forusing risers and with riser units we canoffer coiled tubing services,” says Kris-tensen. “If we see the notation has a posi-tive operational or commercial impact, wewill consider working with DNV on otherunits in our newbuilding programme.”Looking ahead, rising demand for sub-

sea oilfield services places DNV in aunique position among class societies inthis growing industry segment. “We feelthe optional WELL notation has intrinsicvalue and believe owners will recognizethe commercial potential in time — notjust for newbuildings, but for existing ton-nage.”

WELL INTERVENTION UNITS


››

Highly complex well intervention units require good overview of the operation

from the control cabin.

››

From inspection of a well intervention hull unit.

Building common groundDNV set to launch the Equipment Manufacturers Committee


Over the last two years, representatives from DNVHouston have been meeting with offshore equip-ment manufacturers, organizing a number of semi-nars to focus on common challenges faced by theindustry. In response to overwhelming support forthe project, DNV began soliciting nominations for anew Equipment Manufacturers Committee (EMC)in December, 2009.According to Charles McHardy, DNV’s Gulf Dis-

trict of Operations, the EMC will be modeled onDNV’s Rig Owners Committee, which has beenactive for more than two decades in the Houstonarea. “We recognized the demand for a similar com-mittee devoted to regional equipment manufactur-ers, who face their own set of issues,” he says. “Ourobjective is to establish a structured forum to dis-cuss future challenges, share best practices and lookat new technologies and regulatory requirements.”

The EMC will meet once a year and allow mem-bers to discuss and debate issues critical to theirbusiness. At the same time, the meetings will allowDNV to share information on new developments inclass and risk management, and give members theopportunity to communicate their ideas on whatDNV should be working on. “Rapid changes intechnology, tougher regulations and increasinglydemanding customers have created a demand formore knowledge-sharing,” says McHardy. “We areconfident that the EMC will help build commonground for this vital industry segment.”At present, DNV is gathering nominations to

serve on the committee. Once completed, a Chair-man will be selected who will work with a Secre-tary appointed by DNV, responsible for organizingand hosting the meetings. The first meeting isexpected to take place in the second half of 2010.

EQUIPMENT MANUFACTURERS COMMITTEE


››

DNV Houston.

››

Charles McHardy, Director Business Development.

EQUIPMENT MANUFACTURERS COMMITTEE


THE CHALLENGE

� The total length of all transportationpipelines today would reach 55 timesaround the world.

� The offshore pipelines that are eitherunder construction or planned in theworld would reach 2.5 times around theworld. Well over 50% of these will bebuilt according to DNV-OS-F101.

� The IEA estimates an additional USD10.5 trillion investment in infrastructurefor the 450 scenario.

� How can DNV use its position to getmore revenue out of this?

The goal of the Pipelines of the futureproject was to look for future businessopportunities and work towards maintain-ing or establishing DNV as a “thoughtleader” and “preferred partner” to severalindustries, among them the pipelineindustry, by looking at “Pipelines of thefuture”.

THE APPROACH A core team of engineersperformed over one hundred interviews

with both internal DNV experts and exter-nal customers, soliciting input on theexpected trends and their visions of thepipelines of the future. The internal inter-views targeted DNV staff with particulartechnical expertise in pipeline engineeringor with a broad range of experience thatcan be applied to the pipeline industry.The interview list included technicalexperts, section and department heads, fel-lows, segment and service directors andcustomer service managers. The externalinterviews targeted key customers. Thegoal was to identify the industry’s technical

Pipelines of the future – a DNV innovation project

TEXT: MAGNE A. RØE

PIPELINES OF THE FUTURE


and managerial needs for which DNV canprovide support.

FUTURE TRENDS The results of the inter-views were compiled and discussed by thecore team. Three general industry trendswere identified:

1. “Waves of Information”

In future, pipeline instrumentation willprovide more and more information.Computer technology will continue toimprove exponentially, allowing anincreased ability to perform assessments.Information must be managed appropri-ately and used to make effective engineer-ing and business decisions.

2. “Unchartered Territory”

There are fewer “off-the-shelf” pipelinedevelopments. New projects will more fre-quently challenge new frontiers, such asultra-deep waters, the Arctic, carbon diox-ide, biofuels and shale gas, to name a few.These new projects bring new challengesto the oil and gas industry and in somecases seed new industries.

3. “Pencil Sharpening”

Industry is continuing to push technicalboundaries in order to work “cheaper, bet-ter, and faster”. Thinner walls brought onby higher yield strengths, industry’s push

for higher operating pressures and theageing infrastructure all lead to a need formore accurate analyses to keep thepipelines safe.

PROPOSED ACTIONS IN DNV

Based on the above trends

1. Technology

A list of 50 technical ideas has been col-lected, all with the purpose of gaining newknowledge. Five of these ideas have beenshort listed as being particularly suitable

for DNV to launch. These are all part ofan evolutionary process of continuoustechnology improvement.

2. Competence

Competence has been identified as avery important factor. It is primarily amatter of managing competence ratherthan building competence as the compe-tence exists in DNV. The most importantknowledge in DNV is linked to our codesand it has been proposed to develop soft-ware to document background, handleinquiries, administer experience feed-back and simplify revisions based on thisfeedback.

3. Information management

In the future, it is predicted that all theinformation about the pipelines will bestored in an open database that is accessi-ble using visual software. This “PipelineVirtual World” will have the followingcharacteristics: it will include the wholelifespan of the pipeline, be accessible byall contractors, assessment results and phi-losophy documents will also be stored(not only input data) and it will allow vir-tual access to the pipeline. It is proposedto promote this by supporting and push-ing existing initiatives (www.pods.org) andallowing for this type of documentation inour codes.

PIPELINES OF THE FUTURE


››

Leif Collberg, Project Manager, Pipelines of the

Future.

Established in 2005, FloaTECLLC is a joint venture companyfounded by J. Ray McDermottand Keppel FELS to design, buildand deliver deepwater floatingproduction systems, includingSpar, Semi, and TLP technologysolutions. According to its presi-dent, Eric Namtvedt, its businessconcept is simple. “Our goal is to be the leading

provider of unbiased deepwaterfloating production solutions,from concept to delivery,” hesays. Namtvedt explains that,unlike other providers of deep-water floating production sys-tems, FloaTEC can offer concept-neutral advice on the mostoptimal development solutionand, by utilising the expertise of KeppelFELS, which has extensive experience inthe construction of hulls for drilling rigs,floaters and Semis, and J. Ray McDermott,which has a strong track record in fabri-cating topsides for Spars, the companycan offer more competitive service andproduction solutions.

JOINING FORCES “This depth of experi-ence allows us to tailor a solution to fit spe-cific customer requirements and be a single-source provider of comprehensive detailedengineering concepts for different types ofdeepwater production installations,” he says.“This is a significant advantage for cus-tomers and allows our parent companiesimproved access to the growing market fordeepwater production solutions.”

Namtvedt points out that FloaTEC’sproducts and services not only allow cus-tomers access to more detailed engineer-ing but also allow FloaTEC to producemore accurate cost estimates – an advan-tage in the bidding process. In addition,many issues involving the integration ofthe hull and topside can be managed longbefore construction begins.

A CHANGING MARKET FloaTEC’s busi-ness model is also supported by marketdevelopments. Over the past decade, risingglobal demand for energy combined withdeclining production from shallow waterfields has led to greater demand for deep-water subsea exploration, well construc-tion, drilling and floating production.According to a recent study produced by

consultants Infield Systems andDouglas Westwood, the totalnumber of subsea wells will bal-loon to more than 5,500 by theend of 2010. While some projects have or

may be delayed due to financingissues related to the global eco-nomic downturn, the rapid con-struction of new wells is likely tocontinue, if not accelerate, in theyears to come. Indeed, annualexpenditure in the deepwatersegment is estimated to reacharound USD 35 billion in 2014,with a total global capital expen-diture of USD 167 billionbetween 2010 and 2014. Thestudy also indicates that the aver-age water depth for subsea com-

pletions worldwide has now increased toaround 1,000 metres and most analystsagree that this trend will gather speed –leading to more offshore constructionprojects. With favourable market conditions and

a good business plan in place, FloaTECbegan recruiting. Namtvedt, who has along career in the offshore and energyindustry, working on projects in the NorthSea, West Africa and South East Asia,tapped into his global network of contactsto bring a number of key personnel intothe organisation. By the end of 2007,FloaTEC was up and running, seeking itsfirst big contract.

BUILDING COMPETENCE FloaTECstarted with a few smaller projects, deliver-

FloaTEC: Intelligent engineeringfrom concept to deliveryLate last year, Houston-based company FloaTEC signed a USD 1 billion deal

with Brazilian giant Petrobras and Chevron to design, build and (for a designatedperiod) operate the P-61 tension-leg wellhead platform for the Papa Terra

development. Now the hard work begins.


FLOATEC


››

Eric Namtvedt, President of FloaTEC, LLC

ing conceptual engineering, screening andpre-front-end engineering (pre-FEED) anddesign studies to about 10 customers, butstruggled to win big contracts for McDer-mott and Keppel FELS. “Part of our chal-lenge was that while McDermott and Kep-pel were well known in the market,FloaTEC had no track record,” he says. “Itis a credit to the patience of our parentcompanies, which continued to support usin those first, critical years, that we wereallowed the time to prove the value of ourconcept.”Still, Namtvedt insists the time spent

and investment in FloaTEC in its first fouryears were not wasted. The company

invested in an exhaustive gap analysismodel testing engineering project (knownas Blue Ocean), which took eight monthsto complete. FloaTEC developed new soft-ware tools and model-tested their designsfor Spars, Production Semis, and TLPs,completed a project to develop sizingtools and produced design criteria thatcould be applied to any deepwater pro-duction scenario. “In effect, we acted asour own customer,” says Namtvedt. “It wasan expensive project, but it was a neces-sary step to give us a framework to delivertruly concept-neutral unbiased evaluationsand to win the confidence of the indus-try.”

FloaTEC’s contract with Petrobras (andChevron being a partner) on the PapaTerra project covers design, engineering,construction, maintenance and installa-tion work, as well as a three-year contractto operate the TLWP. The P-61 TLWP willwork alongside the P-63 floating produc-tion, storage and offloading vessel to han-dle up to 180,000 barrels of oil per day. The P-61 will be built at Keppel’s Bras-

FELS yard in Angra dos Reis (Brazil), thusfulfilling local content requirements,while other critical components such asthe tendons, temporary buoyancy modulesand piles will be fabricated at McDer-mott’s Morgan City facility in Louisiana.

FLOATEC


››

At the front right is FloaTEC’s Tension Leg Wellhead Platform ( TLWP ) which will be designed to operate in

Papa Terra field in Campos Basin, off Rio de Janeiro, Brazil at a water depth of 1,180m. The Unit will have a

design life of 25 years without need for dry-docking. The TLWP will be designed to operate coupled with a

Tender Assistance Drilling Rig (TAD) (shown on front left) and be equipped to receive and support Work-over

Rig operations. The production fluids arriving at the TLWP will be exported to a nearby Floating Production

Storage Offloading Unit (FPSO) (shown behind) by means of Fluid Transfer Lines (FTL) shown going from the

TWLP to the FPSO.

Once completed, McDermott will installthe P-61 at the Papa Terra field (Cam-pos Basin, offshore Brazil). The contractis worth almost USD 1 billion and sched-uled to be completed in 2013.

PREDICTABLE COSTS To Namtvedt,FloaTEC’s successful bid for the PapaTerra project is not only an importantbusiness achievement but also validatesFloaTEC’s business concept. “Because webring together the resources of McDer-mott and Keppel, we can offer qualityFEED concepts that offer real time dataon costs and schedules,” he says. “Cus-tomers don’t have to worry about packag-ing different topside and hull elementsand can eliminate unnecessary biddingfor different components. We can offer ahigh degree of predictability from con-cept to delivery.”At present, FloaTEC is staffing up to

meet the project’s requirements andworking closely with engineers from

Keppel FELS and J. Ray McDermott,which will provide about 60 per cent ofthe engineering resources. DNV hasworked with FloaTEC on a number ofprojects in the past, has the interna-tional network of resources to add valueconsistent with FloaTEC’s business phi-losophy and is looking forward to work-ing closely with and supporting FloaTECin what will surely be a very successfulfuture. In the meantime, Namtvedt has set

up a separate organisation to managethe project, leaving his team in Houstonfree to pursue other projects. Once theproject is under way, FloaTEC’s partici-pation will gradually be phased out.“Our mission is not to sell engineeringhours, but to bring contracts to McDer-mott and Keppel,” he says. “We areworking to ensure the project is exe-cuted in line with the customer’s expec-tations, but our place is in the market,competing for new contracts.”

FLOATEC


SOLID PARTNERS

J. Ray McDermott is a leading worldwide marine

solutions company with fabrication facilities in the

Americas, Middle East, Caspian Sea and Asia

Pacific. Services include the design, fabrication,

transportation and installation of offshore

platforms and installation of offshore pipelines.

McDermott has global operations in over 20

countries and more than 25,000 employees.

Keppel FELS is the world’s leading designer, builder

and repairer of mobile offshore units. Committed

to on-time and on-budget deliveries, Keppel FELS

continues to form strategic alliances with

trendsetters to develop new solutions for oil and

gas customers.

››

FloaTEC, LLC Board of Members - from left to right: Aziz Merchant (Keppel), David P Roquemore (J. Ray McDermott), Michael Chia (Keppel), Bill R. Robinson (J. Ray

McDermott), Eric H Namtvedt (FloaTEC), YY Chow (Keppel), Steven Roll (J. Ray McDermott), CC Lai (Keppel), Bill Soester (J. Ray McDermott)

FLOATEC


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DNV Offshore Update No. 1 2010

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