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Rig Stacking Strategies Ship & Offshore Finance Forum Oslo 25 May 2016 Chip Keener Integrated Rig Stacking Solutions LLC www.keener-consulting.com 1
Rig Stacking Strategies Ship & Offshore Finance Forum
Oslo 25 May 2016
Chip Keener Integrated Rig Stacking Solutions LLC
www.keener-consulting.com 1
Industry Cycles The Risks Warm Stack vs Cold Stack The Cost of Responsibly Stacking
Rig Stacking Strategies
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Oil Price vs Industry Build
Jackup
Floater
$/bbl Inflation adjusted
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1. Corrosion – hull, machinery, piping, electrical systems • VCI’s, dehumidification, cathodic protection
2. Mold – accommodations 3. Weather Events – particularly cyclonic storms 4. Certification – dates of reference
• IMO MODU Code / Flag State – keel laying • CLASS – shipyard contract … or reactivation
5. Control Systems – drilling, well control, vessel management, power management, dynamic positioning • 1000’s of parameters (software & several 100 PLC’s) • 3-6 months of commissioning with the OEM’s
Layup Risks – Startup Time / Asset Valuation
Rig Systems – A Holistic View
Anchor Winches
Bulk Controls
Cement Controls
Mud Controls
Drilling Switch Gear
Load & Stability
Safety & Automation
Gyros & Transducers
SCR Monitoring
Riser Tensioners
Blowout Preventers
Dynamic Positioning
Power Mgmt
Drilling VFD/VSD
CCTV Drilling Controls
Drawworks Top Drive Rotary Power Slips Pipe Handler Fingerboard Roughneck Manipulator Guide Arm Tongs Trolleys Riser Catwalk
Rig Systems – Software & Integrations
Stewart & Stevenson GE Siemens
Cables & Terminations
Networks & Protocols
Dependencies, Interconnections, Configurations
Engines RTDS Multillin Controller
PLC Controller
Remote Console
Bridge Panel / PC
L-3
1. Documentation 2. Inventory & Capital Spares 3. System Commissioning & Validation 4. Infant Mortality
Added Burdens & Risks – New Construction
Warm Stacking correlates with a sustained crew component, and expectation of vessel readiness … though not always. Cold Stacking implies unmanning of a vessel, and presumption of neglect … though not necessarily.
Cold Stack vs Warm Stack
Responsible Stacking – Jackups
~ $600,000 Setup Cost (excludes ~ 4 wks crew participation) • Intake Survey, Dehumidification, VCI’s, Monitoring
Equipment, Accommodation Module
~ $4,800 Daily Run Cost • Labor (3 rotators), Generator, Fuel, R&M, Insurance,
Class - COC Compliance , Local Permits
Incremental Nested Jackups ~ $500,000 Setup Cost ~ $2,400 Daily Run Rate
~ $1,100,000 Setup Cost (excludes ~ 6 wks crew participation) • Intake Survey, Dehumidification, VCI’s, Monitoring
Equipment, Accommodation Module
~ $6,000 Daily Run Cost • Labor (4 rotators), Generator, Fuel, R&M, Insurance,
Class - COC Compliance , Local Permits
Incremental Unmanned Semis in Proximity ~ $1,200,000 Setup Cost (includes SOLUS boat & davit) ~ $3,000 Daily Run Rate
Responsible Stacking – Moored Semis
~ $1,800,000 Setup Cost (excludes ~ 6 wks crew participation) • Intake Survey, Dehumidification, VCI’s, Monitoring
Equipment, Accommodation Module
~ $20,000 Daily Run Cost • Labor (8 rotators), Generator, Fuel, R&M, Insurance,
Class - COC Compliance , Local Permits • ~ $3,500/day additional for tri-catenary moorings
Incremental Unmanned DP Rigs in Proximity
~ $2,000,000 Setup Cost (includes SOLUS boat & davit) ~ $7,500 Daily Run Rate (inclusive of tri-catenary moorings)
Responsible Stacking – DP Floaters
DP Floaters – Warm vs Cold Stack
Months
$’s millions
Assumptions – Cold Stacking $ 3,000,000 setup fee per rig (VCIs, dehumidification, monitoring, mooring) $ 3,500/day mooring rental per rig $ 1,800/day insurance per rig $ 18,000/day 8 man response team & services amortized across all the rigs
Assumptions – Warm Stacking $ 50,000/day per rig
$36.5
$20.6
$10.7
$14.0
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Management & support services:
• project management & staffing • guidance in maintaining sensitive equipment
(e.g. volatile memory, software management) • counsel in the maintenance & suspension of
class & flag state certification • underwriter engagement on insurance risk • commissioning services on startup
Comprehensive Integrated Services
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