Teekay petrojarl by East Coast Promotions

COMPANY PROFILE

2014

Teekay Petrojarl

+441 298 2530 | www.teekay.com

Petrojarl Knarr: You have reached your destination Editorial: Harriet Pattison

With the FPSO Petrojarl Knarr arriving at its destination in the North Sea last month, this is one of Teekay’s largest offshore projects to date. With plans to venture into Brazil for future developments and continued success operating FPSO’s in harsh environments, Teekay holds its core values of passion, sustainability, innovation and teamwork in high esteem resulting in a strong reputation the world over... Established in 1973, Teekay Corporation has come a long way from a regional shipping company to become one of the world’s largest marine energy transportation, storage and production companies. In four decades, the company has diversified into new segments including FSO and LNG Carriers,

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it has created innovative financial structures to both raise capital and grow assets and today, it has an exponential $11 billion in assets with 170 vessels and is widely regarded as a world leader in each industry segment it is present in. The largest operator of Shuttle Tankers and a recognised leading position in LNG Carriers, Teekay

has invested an estimated $3.5 billion in gas and offshore projects since 2011.

FPSO PETROJARL KNARR In mid-2011, Teekay entered into an agreement with BG Norge LTD to provide an FPSO unit for the Knarr oil and gas field located in the North Sea. The unit has been

Teekay Petrojarl under construction at Samsung Heavy Industries in Geoje, South Korea and began its voyage in July this year to Norway, its final destination in the North Sea. At a cost of an estimated $1 billion, the unit was officially named in February at the Samsung shipyard and to date, the FPSO Petrojarl Knarr is one of Teekay’s largest FPSO projects. The Knarr field, previously known as the Jordbaer, is located in the Tampen area in the North Sea. It is thought to contain recoverable reserves of 70 million barrels of oil equivalents. The Knarr FPSO, measuring 256.4m, will have a maximum design production capacity of an estimated 63,000 barrels per day. Project Director for the Petrojarl Knarr project, Einar Saunes explains: “We started the dialogue with BG Norge during summer 2010. They were looking for alternative options, one of them being a lease and operating contract with Teekay. We took the responsibility for engineering, procurement construction and installation of a FPSO and we took responsibility for designing and delivering to the Knarr field. “We started under an interim agreement. We signed the BG Norge contract on the lease, including the construction, on 30th June 2011. At that point in time we had signed the contract with Samsung on 9th May 2011 with the subject to the approval of the BG contract. “We had not worked with BG Norge before as a company, we had some good cooperation with BG Norge on LNG or gas carriers prior to entering into the FPSO contract and also we have a good relationship with BG in Brazil for shuttle tankers,” explains Saunes.

The Knarr unit will commence operations under its charter contract with BG Norge for a period of either six or ten years, with the possibility of extending for a period of up to 20 years.

“If you look at the FPSO market, Teekay have the most FPSO’s in harsh environments” What is surprising perhaps is the quick turnaround of this project since it was announced in 2011. Senior VP Operations, Arne Bye explains: “If you compare us to some of the other oil and gas projects, this is not standard, it was done very quickly. It’s a very, very tight schedule. There were

changes that we also implemented and when we implemented these changes, they were done in a very professional way. We were able to integrate these major changes in a very efficient way. “It was built to the relevant and highest standard specs for the Norwegian sectors. Having said that, Teekay haven’t had the patent for these specifications because we own the assets, so in the bottom of all of this, it’s our philosophies, our specifications and adaptations of the standards and requirements for the Norwegian sectors and North Sea. “We take responsibility to make sure this is a top class vessel meeting our specifications and the norms and standards prevalent for the North Sea. That’s an important point, it’s not as if we build to a NORSOK or generic standard, yes its NORSOK but it’s our specifications. That influences the total quality and schedule and above all, it’s built

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Specialists in Chemical Management Services (CMS) to the FPSO industry We are proud of our association with Teekay Petrojarl, onboard the Banff FPSO. A partnership that has been successful since 2003. We design, manufacture and supply, Completion, Drilling, Remedial, Production and Hydrotest chemicals to the global market of the oil and gas industry.

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to be operated by us, our company,” explains Bye.

SAMSUNG HEAVY INDUSTRIES “We have a long history in the Teekay family with Samsung, both with shuttle tankers and with gas carriers,” Saunes explains. “So we have a good relationship with Samsung Heavy Industries, the sales department, the management and the yard in Geoje.” At the Geoje Shipyard it is mostly ultra-large container ships, LNG carriers and LNG-FPSO’s which are built. At a length of 7.9km, the yard has a berthing capacity of 24 vessels. Arne Bye explains why Samsung Heavy Industries remain in such a prominent position in the industry: “Their construction capabilities are important as being able to build

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“We have a long history in the Teekay family with Samsung, both on the shuttle tankers and on the gas carriers. So we have a good relationship with Samsung Heavy Industries, the sales department, the management and the yard in Geoje”

a vessel like this is actually fairly complex and both the quality and production sequences they use. They also have an engineering capability to take a good feed, detail design it and then take it straight to construction; so you get a very tight schedule from the detail design into construction. Also the full network of subcontractors and suppliers they use. “So they have all that to offer and also the fact we’ve had a long relationship and done development work together with them for the concept designs we have,” Bye adds. The Geoje Shipyard boasts the greatest dock turnover rate in the world, meaning the number of ships that a dock is able to launch. On an annual basis, the yard has a dock turnover of 10 with the

Teekay Petrojarl launch of 30 ships a year. The greater the turnover then, the more efficient the shipbuilding capacity and production is. The largest dock that is currently on site, Dock No 3, measures a staggering 640m long, 97.5m wide and 13m deep. Samsung Heavy Industries’ high turnover rate has been achieved through a fundamental and scientific approach to construction, such as the building of large-sized ship blocks, ensuring it utilises its space by using particularly large cranes and also by shortening the main engine loading period. This scientific approach has also been enforced in the development of remarkably intelligent robot systems. Including a spider automatic welding robot for an LNG cargo tank, a vacuumblasting robot, a wall-climbing system and an inspection and cleaning pipe robot, these innovative designs will record 68% of production Automation rate, in addition to securing perfect quality and the security of its employees’. In addition to its high turnover rate, the Geoje Shipyard is the first to be certified by the world’s three most recognised international standards, namely the ISO 9001 (Management Quality), ISO14001

A RECOGNISED LEADER IN SPECIALIST CLEANING SOLUTIONS

(Environment Management) and OHSAS 18001 (Safe and Healthy Working Environment Management). Recently the Shipyard also acquired the world’s first ISO50001 certification (Energy Management System Standard), which helped to set an impressive record with all the international standards for the very first time within the shipbuilding industry.

“We take responsibility to make sure this is a top class vessel meeting our specifications and the norms and standards prevalent for the North Sea”

OVERCOMNG CHALLENGES Of course, with a project of this size, it is inevitable that challenges will arise. Saunes explains: “The main challenge on the project was some delays on

main equipment on top side so we had to install top side modules before they were 100% compete so some of the integration and completion work, top side, had to be done when all the equipment was on board.” Despite these minor setbacks, Teekay ensured it didn’t interfere with the scheduled time-frame for the Knarr project: “The swivel and the turret solutions were one of the most critical sub-systems on board,” says Saunes. “The swivel turret solution was designed by SBM with the technology we provided, integrated because we had a very oral interaction with Samsung, so the integration of this into the vessel was a preplanned, structured routine from the very beginning.” When we spoke to Teekay last month, the Knarr unit was currently on its way to the North Sea: “It’s on route, they passed Cape of Good Hope On August 19th, then past the west coast of Africa and Gran Canaria for a pit stop and we should, if everything goes as expected, be in Norway by mid-September,” Saunes explains. The Knarr unit was right on schedule, arriving into the Norwegian field on Wednesday

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17th September, taking just 61 days, it was towed successfully by Fairmouth Marine, the Netherlands based marine contractor, part of Royal Boskalis Westminster. Head quartered in Rotterdam, the Netherlands, Fairmouth Marine has an impressive fleet of tugs consisting of five modern super tugs of 205 tons bollard pull each. Just for the Knarr tow, it took three of these tugs alone.

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As the industry continues to grow, the trend to venture more into deeper and harsher environments continues. Saunes explains this is certainly a trend that Teekay enforce and will continue to follow: “If you look at the FPSO market, Teekay have the most FPSO’s in harsh environments. In the North Sea, we want to develop shuttle tanker concepts for harsh environments, together with Samsung. Teekay want to further develop this concept to accommodate an FPSO facility so we are moving further north into

29/09/2014 15:11:10

The official naming ceremony of Petrojarl Knarr took place on February 28 at the Samsung shipyard in Korea. Petrojarl Knarr is one on Teekay’s largest FPSO projects to date.

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Teekay Petrojarl

The Knarr Design: Ship Shape/Samsung Contract: Time Charter Contract Status: 2020 + Options

(1x14 years)

Client: BG Norge Length: 256.4m Breadth: 48.0m Water Depth: 410m Mooring Type: Turret Mooring Storage Capacity: 800,000 bbls Oil Production: 63,000 bopd

harsher environments. “In Norway, there are opportunities coming up and also further north, towards the ice, there are further developments in the Norwegian and UK sectors for harsh environments,” Saunes adds. Looking to the future, Teekay is starting to concentrate on Brazil for further development. With offices and three FPSO’s currently operating in that region, Saunes explains: “Brazil is an important sector for further development, it’s no question that Brazil is looking forward to huge development programs. The environmental conditions with respect to wind and waves is not as severe as the UK and Norwegian waters, so Brazil is an important sector in the FPSO market. “We have just delivered an FPSO that was in Singapore, it went straight out into the field and started production. We have a joint venture with the Odebrecht oil and gas company in Brazil. We have a 50/50 joint venture with Odebrecht for the development of these type of projects and operations in the Brazilian market,” explains Saunes. W ith the Knarr vessel expected to commence operations on the Knarr field, offshore Florø, Norway’s westernmost town, later this year, it seems as though Teekay’s prominent position in the industry is only set to grow: “Our concept is we build the assets, so as the owner of the assets we develop the assets and we go out and build these together with the yard. We act as a contractor, as a service provider to the oil companies,” concludes Saunes

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