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FINAL IQPC-FPSO Conf LDN-Sept04(Regulatory Supervision) DNV

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  • IQPC FPSO ConferenceLondon 21st and 22nd September 2004London, 21st and 22nd September 2004

    REGULATORY SUPERVISION of FPSOs

    Division of Responsibilities

    REGULATORY SUPERVISION of FPSOs

    pand Safety Implications

    by Tore Sildnes,

    Senior Principal Surveyor,

    Off h Cl T h l DNV H d Offi N

    IQPC Conference, London, 09-2004

    Slide 1

    Offshore Class Technology, DNV Head Office, Norway

  • ContentsContentsContentsContents

    FPSO Introduction Relationship between Coastal State AuthoritiesRelationship between Coastal State Authorities,

    Maritime Authorities and Class Brief description of Class Systematics Brief description of Class Systematics Local Variations and Practices Implications and Experiences Success Criteria

    IQPC Conference, London, 09-2004

    Slide 2

  • FPSOFPSO -- HistoryHistoryFPSO FPSO HistoryHistory

    FPSO (Fl ti P d ti St d FPSOs (Floating Production, Storage and Offloading units) have developed over the last 40

    t b i i l l l tiyears to become increasingly popular solution >100 units in operation worldwide 2/3 of fleet are conversions 70 projects underway70 projects underway 110 projects under study

    IQPC Conference, London, 09-2004

    Slide 3

  • Growth in the worlds fleet of FPSOsGrowth in the worlds fleet of FPSOsGrowth in the world s fleet of FPSOsGrowth in the world s fleet of FPSOs

    IQPC Conference, London, 09-2004

    Slide 4(Source: Bluewater)

  • FPSOFPSO -- AdvantagesAdvantagesFPSO FPSO AdvantagesAdvantages

    One of the very few feasible technical solutions for the One of the very few feasible technical solutions for the deep and ultra-deep water locationsC ti l l it l dit Comparatively low capital expenditure

    Can be built based on conventional shipbuilding technology

    Finished and commissioned inshore, thus avoiding costly offshore work.

    Can take heavy payloads as well as providing storage and y p y p g goffloading facilities.

    Easy offshore installation decommissioning and re-use

    IQPC Conference, London, 09-2004

    Slide 5

    Easy offshore installation, decommissioning and re use.

  • Simple FPSO based on converted tanker

    IQPC Conference, London, 09-2004

    Slide 6FPSO Sendje Berge, Source Bergesen Offshore

  • Complex PurposeComplex Purpose--built FPSO built FPSO p pp p

    d S il N

    IQPC Conference, London, 09-2004

    Slide 7

    sgard; Statoil; Norway.

  • Safety RegimesSafety Regimes -- Jigsaw Puzzle ?Jigsaw Puzzle ?Safety Regimes Safety Regimes Jigsaw Puzzle ?Jigsaw Puzzle ?

    Which rules are valid when and for what?Which rules are valid when and for what? National legislation (shelf state) Flag state regulations Flag state regulations Class rules International conventions International conventions

    How are these related?

    IQPC Conference, London, 09-2004

    Slide 8

  • Different Regulatory WorldsDifferent Regulatory WorldsDifferent Regulatory WorldsDifferent Regulatory Worlds

    Local (unique) Coastal State Flag state regulations based on Local (unique) Coastal State Regulations

    Regional Legislation

    Flag state regulations based on international conventions and class g g

    Shuttle tanker from Knutsen O.A.S Haewene Brim at Pierce Field for BP.

    IQPC Conference, London, 09-2004

    Slide 9

  • Shelf State Legislation Shelf State Legislation

    FPSOs must comply with Shelf State Legislation of the

    S e S a e eg s a oS e S a e eg s a o

    p y f g fcountry it is to operateAll states have full sovereignty w.r.t regulating activities on f g y g gtheir continental shelvesActivities on the shelf are generally not regulated byActivities on the shelf are generally not regulated by international conventionsIndustrialised countries are normally well regulated andIndustrialised countries are normally well regulated and have comprehensive rules for activities on the continental shelfshelfThird world countries have only in exceptional cases comprehensive Shelf State Rules for petroleum activities

    IQPC Conference, London, 09-2004

    Slide 10

    comprehensive Shelf State Rules for petroleum activities

  • Shelf State LegislationShelf State Legislationgg

    The legislation applies to all activities on the shelf National legislation precede Maritime (Flag State) Rules, g p ( g ) ,

    but will normally refer to flag state rules w.r.t. maritime aspectsp

    Shelf state rules are normally more comprehensive than flag state rules in that a wider range of aspects are coveredg g p

    Approval systematics normally deviates from maritime practisepractise

    IQPC Conference, London, 09-2004

    Slide 11

  • Flag StatesFlag Statesgg

    Shi d M bil Off h U it t di i t ti ll Ships and Mobile Offshore Units trading internationally have to comply with safety regulations of the Maritime A thorit in the co ntr hose flag the nit is fl ing (theAuthority in the country whose flag the unit is flying (the Flag State)

    l d d i l h f l i Flag states adopt and implement the safety regulations given in conventions issued by IMO (International

    i i O i i )Maritime Organisation) Maritime Safety Regime is a Flag State Regime as the

    Flag State is enforcing internationally agreed safety regulations (the conventions) through national maritime

    IQPC Conference, London, 09-2004

    Slide 12law

  • Flag State Rules and FPSOsFlag State Rules and FPSOsgg

    Production/storage units do not need flag but are free to move in international waters when carrying flag

    Seaworthiness may be documented by way of maritimeSeaworthiness may be documented by way of maritime certificates issued by Maritime Administrations

    Coastal states may require FPSOs to be flagged and l dclassed

    IQPC Conference, London, 09-2004

    Slide 13

  • International Maritime Organisation (IMO)International Maritime Organisation (IMO)g ( )g ( )

    U i d N i b d f i i ff i United Nations body for maritime affairs Develops and maintains conventions giving safety

    regulations for ships and MOUs trading internationally

    Abt. 156 nations are members of IMO Secretariat and meetings in LondonSecretariat and meetings in London IMO has no operational role

    IQPC Conference, London, 09-2004

    Slide 14

  • IMO Conventions and ResolutionsIMO Conventions and Resolutions

    Important IMO conventions include:o SOLAS (Safety of Life at Sea)o MARPOL (pollution prevention)

    L d Lio Load Lineo Tonnageo MODU (Safety code for drilling units)o MODU (Safety code for drilling units)

    Degree to which IMO requirements are enforced for FPSOs depend on the flag stateg

    Important to check flag authority position early in a project Examples: p

    o MARPOL double hull requiremento MARPOL stability requirements

    IQPC Conference, London, 09-2004

    Slide 15

  • Relations Relations -- Shelf State, Flag & ClassShelf State, Flag & Class, g, g

    Flag states require classification Delegation of authority from Flag State to Class is Delegation of authority from Flag State to Class is

    normal For operation on continental shel es there are For operation on continental shelves, there are

    normally additional local coastal state requirements l i f h i f l h i Delegation of authority from Coastal State Authority

    to Class is rare

    IQPC Conference, London, 09-2004

    Slide 16

  • Relation Maritime Authorities vs ClassRelation Maritime Authorities vs. Class

    STATUTORY

    National Laws and Regulations

    CLASS RULES STATUTORYREGULATIONS

    Statutory Services based on delegated

    authority

    Control by Class Control byA thorities

    y

    y Authorities

    IQPC Conference, London, 09-2004

    Slide 17

  • What is Classification ?What is Classification ?

    Classification is a system for safeguarding life, property and the environment due to operational consequences

    Classification implies a process of verifying unit p p y gstandards against a set of requirements ClassRules and Standards

    Classification aims to verify that the required Rule standard is built in, observed and maintainedstandard is built in, observed and maintained throughout the units life

    IQPC Conference, London, 09-2004

    Slide 18

  • Role of ClassificationRole of Classification

    Classification has gained world wide recognition as an adequateClassification has gained world wide recognition as an adequate level of safety and quality, i.e. provides a sound basic safety standard

    Classification serves as a verification system for a number of parties who have special interest in the safety and quality of MOUs, such as: National Authorities

    I d it Insurance underwriters Owners Building yards and sub-contractorsBuilding yards and sub contractors Finance institutions Charterers

    IQPC Conference, London, 09-2004

    Slide 19

  • Classification - Lifetime ApproachClassification Lifetime Approach

    Design ApprovalDesign Approval

    Construction surveyConstruction survey

    CertificationCertificationCertificationCertification

    Operation followOperation follow--upup

    IQPC Conference, London, 09-2004

    Slide 20

  • Hierarchy of Classification CertificatesHierarchy of Classification Certificatesyy

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas h l ifi d h

    CLASSCERTIFICATE

    has classified the Floating Production, Storage and

    Offloading Vessel and that it is built in accordance with the

    Societies Rules forOffshore Ships, July 2000

    SystemAPPROVAL

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas has reviewed the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas has reviewed the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    ComponentCERTIFICATES

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas has reviews the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas has reviews the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    DET NORSKE VERITAS

    It is herby certified that Det Norske Veritas has reviewed the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas has reviews the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    MaterialCERTIFICATES

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas has reviewed the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas has reviewed the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas has reviewed the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    DET NORSKE VERITAS

    It is herb certified that Det Norske Veritas has reviews the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    DET NORSKE VERITAS

    It is hereby certified that Det Norske Veritas

    IQPC Conference, London, 09-2004

    Slide 21

    has reviewed the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

    has reviewed the NAM F3Concrete Gravity BasePlatform and that it is built in accordance with the SocietiesRules for Fixed OffshoreInstallations, July 1992

  • Class NotationsClass Notations

    Scope of classification is determined by mandatory and additional class notations e gmandatory and additional class notations, e.g.

    Main character of class

    Service and Type Special feature

    IQPC Conference, London, 09-2004

    Slide 22

    of class notationp

    notation

  • FPSO Main Class covers the following systems:

    Arrangement incl area classification and escape Arrangement, incl. area classification and escape Emergency safety systems Structural strength including hull and superstructure Structural strength including hull and superstructure,

    materials, welding, fabrication and corrosion protection Stability Stability Watertight and weather-tight integrity Machinery and systems for marine use Machinery and systems for marine use Electrical installations for marine use

    I t t ti d t ti Instrumentation and automation. Fire protection

    P iti k i

    IQPC Conference, London, 09-2004

    Slide 23

    Position keeping

  • Classification - What is not Covered?Classification What is not Covered?

    Functionality/reliability of non-safety critical systems Lif ti id ti i t Life time considerations equipment Requirements to user friendlinessq f Requirements to inspection- and maintenance friendliness Requirements to personnel protection only partly

    IQPC Conference, London, 09-2004

    Slide 24

  • Verification of Requirements - Offshore UnitsVerification of Requirements Offshore Units

    Owner, OperatorOwner, Operatore

    n

    t

    s

    Flag, Shelf, other

    Class

    e

    q

    u

    i

    r

    e

    m

    R

    e

    Work Scope

    IQPC Conference, London, 09-2004

    Slide 25

  • MARPOL and FPSOs: New GuidelinesMARPOL and FPSOs: New Guidelines

    SOLASAnnex 1 Unified interpretations

    ModifiedMARPOL

    L d li

    Annex 2

    Annex 3 IMO

    Modified

    Load lines Annex 4

    Annex 13. Guidelines for Applicationof Marpol Annex 1. Requirements

    to FPSO/FSOsto FPSO/FSOs New

    IQPC Conference, London, 09-2004

    Slide 26

  • MARPOL and FPSOs: ApplicationMARPOL and FPSOs: Application

    Applicable to:Applicable to:

    Existing FPSO/FSOs

    New built FPSO/FSOs

    Conversions from existing tankersConversions from existing tankers

    Applicable for units flagged units and for other units where directed by coastal authoritieswhere directed by coastal authorities

    Expected entry into force January 2007

    Also applicable during temporary disconnection

    IQPC Conference, London, 09-2004

    Slide 27

  • MARPOL and FPSOs: Impact of ChangesMARPOL and FPSOs: Impact of Changes

    Discharge requirements

    Double sides / collision riskDouble sides / collision risk

    Tank arrangement / sizes

    Stability

    Enhanced surveysEnhanced surveys

    IQPC Conference, London, 09-2004

    Slide 28

  • MARPOL and FPSOs: DischargesMARPOL and FPSOs: Discharges

    Machinery space drainage Offshore processing drainage Offshore processing drainage Production water discharge Displacement water discharge Contaminated sea water

    IQPC Conference, London, 09-2004

    Slide 29

  • MARPOL and FPSOs: Discharge classificationg

    Prod.from Oil/gas separation

    Gas

    "wet oil"

    wellheadOil/gas separation

    Dehydration StorageTransport to

    shoreReroute to production

    1

    shoreproduction stream 2

    SeparationGravity

    separationGenerators, fuel tanks

    and pumps Oil and gas

    processing activities

    Machinery Open and closed

    Seawater introduced into cargo tanks

    Contaminated seawater from

    ti l

    Gravity separation Gravity separationGas flotation

    separation

    space drainage drainage

    Gravity separation

    operational purposes

    separation

    Displacement water discharge

    Production water discharge

    Offshore processing drainage

    Machinery space drainage

    Contaminated seawater

    IQPC Conference, London, 09-2004

    Slide 30

    MARPOL 73/78 AND NATIONAL REGULATIONS NATIONAL AND REGIONAL REGULATIONS

  • MARPOL and FPSOs: Means of dischargeMARPOL and FPSOs: Means of discharge

    S d h Send ashore Incinerate Separate/discharge Add to production streamAdd to production stream

    Di h it iDischarge criteria: Flag state : Marpol: 15 p.p.m. Coastal state: Oslo Paris Convention 40 p.p.m

    IQPC Conference, London, 09-2004

    Slide 31

  • MARPOL and FPSOs: Collision riskMARPOL and FPSOs: Collision risk

    N b ilt FPSO D bl h ll i d Newbuilt FPSOs: Double hull required. (no double bottom).

    Converted tankers: Appropriate measurespp pto address collision risk

    Existing FPSOs: No upgrade required

    IQPC Conference, London, 09-2004

    Slide 32

  • MARPOL and FPSOs: Appropriate measuresMARPOL and FPSOs: Appropriate measures

    Double sides in way of supply boat area. Ensure that wing tanks in way of supply boat areas are

    dedicated ballast tanks or void spaces. Adding sponsoons to the sides of the hull.

    F d (Y k h t l f ) i f l Fenders (Yokohama or steel frames) in way of supply boat mooring area.

    Use of deck cranes with increased boom length andUse of deck cranes with increased boom length and dynamic positioned supply vessels which maintain sufficient distance from ships sides to avoid contact

    Collision avoidance measures (navigational warnings, safety zone etc.)

    IQPC Conference, London, 09-2004

    Slide 33

  • MARPOL and FPSOs: Limitation of oil outflowMARPOL and FPSOs: Limitation of oil outflow

    R i t li bl f t k b t till Requirements applicable for new tankers, but till now not for tankers delivered before 1977.

    Maximum oil outflow shall not exceed 30,000 m3 Limits possibilities for location of ballast tanks p Only relevant for VLCC size FPSOs/FSOs

    IQPC Conference, London, 09-2004

    Slide 34

  • MARPOL and FPSOs: Tank ConfigurationMARPOL and FPSOs: Tank ConfigurationCargo and slop tanks

    ll kBallast tanks

    29031

    Compliant:

    1234567Slops

    5232

    10950 11173 17858 20990 2099015665 1520010950 11173 17858 20990 2099015665 15200

    Non- Compliant:

    1234567Slops

    Non Compliant:

    IQPC Conference, London, 09-2004

    Slide 3536655

  • Regional RegulationsRegional Regulationsg gg g

    Production units may need to comply with regional regulationsregulations

    EU-directives apply to FPSOs on continental shelves of member countries and other countries adopting EUmember countries and other countries adopting EU-directives into own legislationOth i l di ti l d di Other regional directives may apply depending on location

    IQPC Conference, London, 09-2004

    Slide 36

  • Regional Variations & Practices:United KingdomUnited Kingdom

    The Duty Holder is responsible for establishing a y p gperformance standard and a verification scheme for the safety critical elements as identified in the Safety Casey y

    An independent competent person (ICP) shall execute verification according to the schemeverification according to the scheme

    No delegated authority to Flag/Class or requirement for FPSO to be Flagged/ClassedFPSO to be Flagged/Classed

    Class covers many safety critical elements for an FPSO, d b d t d t ti l li ithand may be used to document partial compliance with

    regulations

    IQPC Conference, London, 09-2004

    Slide 37

    EU directives to be complied with

  • Regional Variations & Practices:NorwayNorway

    Permanently placed FPSOs to comply with local y p p ypetroleum regulations referring extensively to local NORSOK standards

    Short term FPSOs may alternatively comply with maritime rules (flag and class) for marine aspectsmaritime rules (flag and class) for marine aspects

    Operator has overall responsibility for safety objectives and for achieving and maintaining theseand for achieving and maintaining these

    No requirement for Flag / Class or delegated authority to th f th P t l Di t tthese from the Petroleum Directorate

    EU directives apply for production related aspects

    IQPC Conference, London, 09-2004

    Slide 38

  • US Gulf of MexicoRegional Variations & Practices:

    US Gulf of Mexico MMS has now issued a Final Environmental Impact

    Statement giving overall green light for FPSOs in deepwater GoM

    USCG states they are ready to take FPSO applications right now (regulatory concerns will be settled)g ( g y )

    None operating yet FPSOs on location need not be US flagged (US Customs FPSOs on location need not be US flagged (US Customs

    decision March 2001)Sh ttl t k d t b Shuttle tankers need to be :US flagged

    IQPC Conference, London, 09-2004

    Slide 39

    Built and crewed from US in compliance with the Jones Act

  • U S -Gulf of MexicoRegional Variations & Practices:

    U.S. Gulf of Mexico Jurisdiction is shared between Mineral Management

    Services (MMS) and US Coast Guard (USCG)- ref. MoU (16 Dec. 98)( )

    The MMS issue production permit based on - review and audit of production facilities andreview and audit of production facilities and- Certified Verification Agency (CVA) Statement

    Th USCG i C ifi f I i (C I ) f The USCG issue Certificate of Inspection (C.o.I.) for floating production facilities; Classification is credited g p ;towards C.o.I.

    IQPC Conference, London, 09-2004

    Slide 40

  • AustraliaRegional Variations & Practices:

    The Duty Holder has overall responsibility for safety

    Australia

    The Duty Holder has overall responsibility for safety The Federal States in Australia have established a

    Safety Case RegimeSafety Case Regime Verification plan to be agreed between the Duty

    H ld d th R l tHolder and the Regulator If moving off location, compliance with marine act

    incl. marine crew necessary An independent Verification Body shall verify

    according to agreement Duty Holder / Regulator

    IQPC Conference, London, 09-2004

    Slide 41

  • CanadaRegional Variations & Practices:

    Two jurisdictions on East Coast:

    Canada

    Newfoundland; Canada Newfoundland Offshore Petroleum Board (C-NOPB)

    Nova Scotia; Canada Nova Scotia Offshore Petroleum Board (C-NSOPB)

    P d ti it t Production units must: comply with the Drilling, Installation and Production Regulations

    of the respective Boardsof the respective Boards be issued with a Certificate of Fitness from an approved

    Certifying AuthorityCertifying Authority In addition all floating units must comply with Transport Canada

    Marine Safety Regulations

    IQPC Conference, London, 09-2004

    Slide 42

    Marine Safety Regulations

  • AngolaRegional Variations & Practices:

    Angola

    No regulations in place for offshore E&P activities Petroleum laws being submitted to Parliamentg All offshore developments are Production Sharing

    Agreements where SONANGOL is a stakeholderAgreements where SONANGOL is a stakeholder Operators have used best practice

    Cl ifi i d i i l i i ifi Classification and international maritime certificates used as basis

    No requirement for flagging/classing units

    IQPC Conference, London, 09-2004

    Slide 43

  • NigeriaRegional Variations & Practices:

    O t ibl t d l i l ti b D t t

    Nigeria

    Operator responsible towards legislation by Department of Petroleum Resources (DPR)

    Present legislation prescriptive including aspects of safety, environment and fiscal revenues

    Other agencies that may have involvement in FPSO projects are the Nigerian Maritime Authority (NMA) and Navy

    Units must have flag/class documenting satisfactory g g ystructural integrity, and follow mandatory surveys

    IQPC Conference, London, 09-2004

    Slide 44

  • BrazilRegional Variations & Practices:

    HS&E l i l ti i l b t t ff h ifi

    Brazil

    HS&E legislation in place, but not offshore specific; operational safety legislation under development

    Several agencies have jurisdiction: National Petroleum Agency (ANP) Environmental Agency (IBAMA) Coast Guard (DPC)Coast Guard (DPC)

    Environmental impact studies requiredCl /fl i i i d f fl i d i Class/flag registration required for floating production facilities

    IQPC Conference, London, 09-2004

    Slide 45

  • ChinaRegional Variations & Practices:

    China Offshore Oil Operation Safety Office (COOOSO) is operating

    China

    China Offshore Oil Operation Safety Office (COOOSO) is operating unit within China National Offshore Oil Corporation (CNOOC), the only state owned offshore oil & gas companyonly state owned offshore oil & gas company

    Rules and regulations established by COOOSO and formally authorised by P.R. China State Bureau of Economy and Tradey y

    COOOSO acknowledge some international rules and standards Duty Holder responsible and must obtain certificate of compliance / y p p

    fitness from certification agency Certification agency has to be authorised by COOOSO For FPSOs, Rules of major classification societies are accepted

    IQPC Conference, London, 09-2004

    Slide 46

  • Caspian SeaRegional Variations & Practices:

    Caspian Sea

    DNV running project with Azeri Safety Authorities and BP-Amoco Exxon Agip and Statoil to develop safetyBP Amoco, Exxon, Agip and Statoil to develop safety regime based on international best practice for offshore E&P activities in Azerbaijanoffshore E&P activities in Azerbaijan

    Caspian littoral states do not require international classificationclassification

    Foreign operators chose international class to all new d t d fl ti tand converted floating assets

    IQPC Conference, London, 09-2004

    Slide 47

  • Implications and Experiences: Implementation and Use of Risk AnalysisImplementation and Use of Risk Analysisp yp y

    Modern offshore regulations rely heavily on risk analysis Modern offshore regulations rely heavily on risk analysis To be refined during project stages with new requirements often introduced late in

    project Few prescriptive requirements

    Problems for yards locked into fixed price - no time/money for iterations. Even if yard take precautions, vendors have no role in process, and

    additional requirements affecting their supply difficult to enforce without dela s and re orkdelays and rework

    On the other hand, risk analyses provide opportunity to circumvent unsuitable prescriptive requirements by demonstrating that alternativeunsuitable prescriptive requirements by demonstrating that alternative solutions have acceptable level of safety.

    IQPC Conference, London, 09-2004

    Slide 48

  • Implications and Experiences:Process of CommunicationProcess of Communication

    Regulator The builder has no channel of

    communication with the regulator (e.g. NPD HSE)NPD, HSE) Operator

    Traditional triangular

    Owner

    gcommunication is yard/class/ owner

    Shelf State regulations leave a lot of room for interpretations - how

    thi b l d h dYard Class

    can this be resolved when yard cannot discuss with Regulator ?

    IQPC Conference, London, 09-2004

    Slide 49

  • Implications and Experiences: Accommodation

    Shelf regulations have working environment requirementsenvironment requirements beyond maritime practice, e.g.: lay-outy lighting ergonomic aspects

    noise & vibration

    Source: Terra Nova project

    IQPC Conference, London, 09-2004

    Slide 50

  • Implications and Experiences:Working environment regulationsWorking environment regulationsWorking environment regulationsWorking environment regulations

    Local working environmental regulations may have strong influence upon the size of the FPSOupon the size of the FPSO

    These requirements often introduced late in projects with subcontractors not having any knowledge g y g

    No common international standards which cover the area adequately. Main message: a essage:

    Must be understood / clarified at early stage of project Require significant investment at design/engineering stage

    IQPC Conference, London, 09-2004

    Slide 51

  • Implications and Experiences:Conflicting codesConflicting codes

    Hull and machinery treated as "marine" with class/flag as basis

    Conflicting codesConflicting codes

    Hull and machinery treated as marine with class/flag as basis For process systems shelf regulations govern

    Utilit d ili t ft f i d Utility and auxiliary systems often common for marine and process systems and thus covered by double set of requirements

    T i ll d i i t t i f h t t Typically compressed air, instrument air, fresh water, sea water cooling, etc.

    To avoid this cost drivers and re work: To avoid this cost drivers and re-work: detail interpretations with accompanying code and specification

    breaks to be made in the project definition phasebreaks to be made in the project definition phase clarifications passed on to sub-contractors and listed in purchase

    orders etc

    IQPC Conference, London, 09-2004

    Slide 52

    orders etc.

  • FPSO Experiences: Norwegian Sector Key FindingsNorwegian Sector Key Findings

    2002 Study by Norwegian Oil Industry Association on 2002 Study by Norwegian Oil Industry Association on lessons learned from existing Norwegian FPSOs58 fi di d iti l j d i t t 58 findings grouped as critical, major and important

    Pls refer http://www.olf.no/lesson/ for detail info

    Critical Findings - Project Issues:g j Capex over-runs/Schedule delays

    Critical Findings Topside Issues Critical Findings Topside Issues Gas compression liquid carry-over

    IQPC Conference, London, 09-2004

    Slide 53

  • FPSO Experiences: Norwegian Sector Key FindingsNorwegian Sector Key Findings

    Critical Findings Marine Systems: Green Water Hull Cracking Turret Bearing Performance Turret Location

    i d d Marine Standards Critical Findings Operations

    Layout issues Insufficient accommodationB t lBut also: High Uptime

    Good Safety Performance

    IQPC Conference, London, 09-2004

    Slide 54

    Good Safety Performance

  • FPSO Success CriteriaFPSO Success Criteria

    Shelf state goal-setting requirements must be turnedShelf state goal setting requirements must be turned into prescriptive verifiable requirements before fixed

    i /d li t t t d i tprice/delivery contracts are entered into.

    Good collaboration between designer and verifier, including sufficient time allocated for design verification (ref cost of wrong design inconvenience ofverification (ref. cost of wrong design, inconvenience of late verification feed-back, etc.)

    Active and professional owner organisation aware of its responsibilities towards shelf authorities.

    IQPC Conference, London, 09-2004

    Slide 55

    p

  • FPSO Success CriteriaFPSO Success Criteria

    Understanding and agreeing up front on the responsibilities of risk analyses and the handling of their outcome.

    Having adequate resources (competence and manning) to handle the complex piping, electrical and instrumentation installations of an FPSO. M t FPSO j t h ll b b ilt i t diti l hi d th t Most FPSO projects shall be built in traditional shipyards that rely on very efficient fabrication processes. These yards may have up to 50 vessels being constructed each year and anyhave up to 50 vessels being constructed each year and any interruptions in the fabrication schedule can impact on several projects with severe consequences. It is then critical to integrate, as far as possible, with the current yard procedures.

    IQPC Conference, London, 09-2004

    Slide 56

  • Thank you for your attention. y y

    STATOILSTATOIL

    IQPC Conference, London, 09-2004

    Slide 57


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