IRO News 04 by Pedemex BV

AUGUST 2007

NEWSletter 04 ASSOCIATION OF DUTCH SUPPLIERS IN THE OIL AND GAS INDUSTRY

This is the fourth issue of IRO NEWSletter. This newsletter is published twice a year to inform our international relations about the news in the Dutch upstream oil and gas industry and the most noticeable activities of our members. PAGE 2

Huisman-Itrec running at full speed

Business is still booming The activities of the Dutch suppliers in the oil and gas industry have proven to be of great success. The Dutch upstream oil and gas industry performs very well and activities on the Dutch Continental Shelf are still increasing, thanks to several new exploration and production projects which were initiated in 2006. However most business is still generated in areas outside the North Sea, in particular the Gulf of Mexico, the Middle East, West Africa, Central Asia and the Far East. The upturn in the oil and gas industry also reflects in the success of IRO. The association still sees a growth of new members up to a total of 320. In view of the positive prospects of the oil and gas industry, the association and its members have good reasons for a continued optimistic outlook to the forthcoming years. Many IRO members have obtained a good reputation that enables them to acquire a lot of orders. Large projects like FPSO Sevan Hummingbird, pipelayer ‘Audacia’ and recently the MPU Heavy Lifter is keeping Keppel Verolme very busy. Huisman-Itrec has recently opened new production facilities in China, the result of a continuing success of its business and a fast expanding offshore market in the Asian region. Also IHC Holland Merwede is doing well. It has received contracts for the design and construction of a reeled rigid pipelaying vessel, a flexible pipelaying vessel and a diving support/offshore construction vessel for Subsea 7. Besides these large companies, also the smaller ones are performing very well.

started an investigation to find solutions for these problems. The goal of this so-called ‘Education Project’ is to extend and improve education possibilities for the upstream oil and gas industry; to create interest amongst young people for education and jobs in this industry and to stimulate retraining of experienced workers from other branches of industry. An important step in this project is the investigation of demands of companies in the upstream oil and gas industry. Another step is to make an inventory of all the existing technical studies in this area and to point out where the gaps are. Furthermore, in order to create interest, the image of the oil and gas industry has to be improved by providing information. A good opportunity for this was the Maritime & Offshore Career Event which was organized on 31 May in Rotterdam. IRO as well as many member companies were present at this event to demonstrate the business they are in and the job opportunities they have available. The event attracted a lot of students, but also people who are planning on switching jobs into the maritime and offshore industry. In the next months IRO and NOGEPA will set up an action plan and strategy to deal with the challenge of bringing the oil and gas industry into a positive light.

IRO Export Promotion In the first half of 2007, IRO organized Dutch Pavilions at the following exhibitions: Iran Oil Show, Tehran, Iran, 18-22 April OTC 2007, Houston, USA, 30 April-3 May

Education Project

EWEC 2007, Milano, Italy, 7-10 May

As mentioned in IRO Newsletter 3, IRO will be giving a lot of attention to education in the coming years. It is generally known that a lot of companies encounter more and more difficulties to fill up their vacancies. The upstream oil and gas industry is in desperate need of personnel, mainly technically schooled employees on all levels and disciplines. A reason for that can be that the education possibilities in The Netherlands are limited. Furthermore, the oil and gas industry does not appeal directly to one’s imagination and does not have a positive image. IRO and NOGEPA (Netherlands Oil and Gas Exploration and Production Association) have decided to join forces and have

Other exhibitions that will be visited in 2007 are: Offshore Europe, Aberdeen, UK, 4-7 September KIOGE, Almaty, Kazakhstan, 2-5 October In the first half of 2007, IRO organized a trade mission to: Singapore-Malaysia, 13-19 June IRO is also planning on organizing trade missions to: Kazakhstan, October (in combination with KIOGE) Saudi Arabia, December

For the updated membership list, please visit our website: www.iro.nl IRO P.O. Box 7261, 2701 AG Zoetermeer, The Netherlands T +31 79 3411981 F +31 79 3419764 E info@iro.nl

Huisman-Itrec recently installed a rigid reel-lay system on board the Seven Oceans, in Schiedam. (Photo: Huisman-Itrec)

Huisman-Itrec running at full speed

The cranes and pipelaying systems developed and built by Huisman-Itrec for the shipping and offshore industry are selling like hot cakes. Thanks to the company’s own branches in the Netherlands, the Czech Republic and recently also in China, and with the assistance of a number of solid Dutch partners, the offshore and shipping industry can count on tailor-made solutions. Huisman-Itrec also hopes to soon establish an even more solid footing in the drilling sector. To achieve this goal, an advanced drillship has now been developed in collaboration with Gusto.

cranes for offshore platforms and construction vessels. The crane builder continues today to set the trend in these market segments. “For the latest heavy lifters from Jumbo Shipping, the Jumbo Jubilee and the Fairplayer, we are currently already building heavy lift mast cranes with a lifting capacity of 900 tonnes. We have also just upgraded the 800-tonne cranes on the Jumbo Javelin and the Fairpartner to 900 tonnes. Finally, the flagship of BigLift Shipping, the Happy Buccaneer, has just paid us a return visit after 22 years, to have her two heavy lift mast cranes overhauled and upgraded from 550 to 700 tonnes.”

The fact that there is much work at Huisman-Itrec becomes clear when you look at the finishing quay at the company in Schiedam. The line of heavy lift vessels and offshore installation vessels moored at the quayside waiting for the company’s products to be installed seems unending. According to spokesman Fred Kofman, the order book for the crane builder is completely full until 2010/2011. “Our strategy is to set the trend with innovative products, in three markets. We are fortunate that we can call upon a pool of extremely inventive designers, who under the leadership of director Joop Roodenburg have time and again come up with smart and special solutions for further improving our existing products, and developing new products.” Huisman-Itrec, established in 1982 following a merger between the companies Huisman and Itrec, first acquired a reputation for the development and fabrication of heavy lift mast cranes for well-known heavy lift operators such as BigLift Shipping and Jumbo Shipping, and pedestal

Offshore crane market According to Fred Kofman, the demand for new cranes is not exclusive to the heavy lifting market, but indeed, more specifically, is now coming from the offshore market. For that reason, the company opened a new plant in China, earlier this year. “We have been producing goods in China for some time, but we now have our own plant, which was officially opened on 17 April 2007.” There is plenty of work; the order book for this production facility already contains forty cranes with lifting capacities ranging between 30 and 5,000 tonnes. Almost all these cranes are intended for installation on platforms or new construction vessels. The company’s own production facility in the Czech Republic, which earlier this year celebrated its tenth anniversary, is primarily responsible for the fabrication of components for cranes and pipelaying installations, that are subsequently assembled in Schiedam. The Czech plant is also the source of the components for the cranes previously supplied

IRO NEWSletter AUGUST 2007 published twice a year

by Huisman-Itrec for the new offshore vessels operated by CPL and EZRA. “Those were 800-tonne cranes with a larger mast base. The unique feature was that the entire winch frame was installed in the mast base, rather than beneath the base in the wall of the ship, as is the case on heavy lift vessels.” For the 3,000 short tonne crane the company has developed for the new Sapura Crest offshore installation vessel, the winch frame in fact even rotates with the jib. The Sapura 3000, that is to be equipped with this crane, was designed by the Schiedam-based design agency Sea of Solutions. The same applies for the latest crane vessel for Nordic Heavy Lift. This ship will also be built in Singapore, and will be equipped with a special Huisman-Itrec crane with a lifting capacity of 5,000 tonnes.

Pipelaying systems As well as developing and fabricating cranes, the design and fabrication of S-lay, reel-lay, flex-lay and J-lay pipelaying systems has really taken off. These, too, are selling faster than they can be produced. Fred Kofman continued his explanation, saying, “For these products, we collaborate closely with the Damen and Merwede shipyards. Damen, for example, had already adapted a number of vessels operated by Acergy, including the Pertinacia and Polar Queen, in such a way that we were able to mount a pipelaying installation on board. De Merwede yard is designing and building two special offshore vessels for Subsea 7, on which our cranes and pipelaying and pipe handling systems can be perfectly positioned and installed.” The vessels Kofman was referring to are the just finished Seven Oceans which has been equipped with a rigid reel-lay system, and the Seven Seas, currently still under construction, and due to be equipped with both a flex-lay and a J-lay system. Another remarkable innovation is the system just recently fabricated for the Seaway Polaris. “For this vessel, we fabricated an innovative and complex J-lay system that is fully differentially suspended and which includes an active compensation system for the vessels’ movements. As a result, this 1,200 tonne J-lay tower maintains a fixed position in respect of the seabed, so that pipelaying work can be continued uninterrupted, under all conditions.” The work carried out on board the CSO Deep Blue is another eye-catching project. This vessel was equipped by Huisman-Itrec with a combined reel, flex and J-lay system.

Artist’s impression of the advanced drillship developed in collaboration with Gusto. (Illustration: Huisman-Itrec)

Also in the drilling market One market segment in which Huisman-Itrec wishes to achieve further growth is the drilling sector. With this in mind, the Schiedam-based company has already developed a number of unusual techniques. Fred Kofman continued, “For both offshore and onshore applications, we have developed a containerised drilling rig known as the LOC 250. The first model has now been sold in the United States and we have already further developed a LOC 400, with a hook load of 400 tonnes.” Yet another revolutionary design is the so-called Multi Purpose Tower, a closed construction using which drilling and lifting work can be undertaken, and in which a heave-compensation system has been incorporated. The first Multi Purpose Tower was installed several years ago on the semi-submersible offshore vessel Q4000 operated by Cal Dive (currently Helix). Another unusual design is that of the JBF 6000, a system which enables drilling to be carried out into water depths of up to 6,000 feet. Huisman-Itrec has further developed this system, and is now able to produce the JBF 12000 that permits drilling to be carried out in water depths of up to 12,000 feet. The company from Schiedam also has high expectations for the advanced drillship developed in collaboration with Gusto. “In this design we have incorporated all our knowledge in the field of drilling and pipe-handling equipment and crane technology”, concluded Fred Kofman, who described the collaboration with the various shipyards and engineering firms as yet another chapter of Holland’s Glory.

Postscript

The heavy lift mast cranes on the Fairpartner are tested up to a test weight of 990 tonnes. (Photo: PAS Publicaties)

As well as the three market segments already covered, the people in Schiedam are also happy to work on behalf of clients in other segments who need special equipment to be developed for very specific applications, such as the grippers for the lifts for the Russian submarine Kursk, or a special grab hoist used to dredge so-called glory holes in the seabed. In the holes, protected against the dangers of floating icebergs, the shutoff valves for oil wells can be installed. The fact that the company’s innovative activities for the offshore sector are highly appreciated was demonstrated last year when director Joop Roodenburg was the first to ever receive the IRO Award of Excellence.