April 2017 www.osjonline.com
Norwegian coalition ‘a necessary structural measure’
Integrated offshore access system takes walk-to-work to the next level Jones Act proposal could have significant effects on international vessel owners
“NOIA hopes President Trump will begin work on a five year offshore leasing programme that addresses the Atlantic and Arctic outer continental shelf withdrawals” Randall Luthi, president, National Ocean Industries Association, see page 11
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contents
April 2017
volume 20 issue 3
05 07
Regulars
5 COMMENT 43 BEST OF THE WEB 47 VESSEL NEWS 48 IMCA NEWS
News focus 7 US owners would like to see CBP enforce the Jones Act in a way that will effectively exclude international vessels 8 Norwegian shipowners have rejected claims of tax evasion in the Gulf of Mexico
Area report
11
11 NOIA and other industry organisations have applauded President Trump’s regulatory roll-back
Dynamic positioning 15 The European Dynamic Positioning conference in London addressed wideranging issues including training and new technology
On order 19 DEME has ordered a massive crane vessel for the offshore wind and decommissioning sectors
Cranes 23 Motion compensation systems for cranes were among the winners in the 2017 OSJ awards
31
Bridge systems 27 Collaboration is the key to developing the next generation of bridge systems, say well known suppliers
Dive support vessels & equipment 28 More newbuilds have been delivered into the market in Brazil and northwest Europe
Offshore access 31 Olympic in Norway has ordered a walk-to-work system that will be fully integrated with the ship’s DP and control systems
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Offshore Support Journal | April 2017
contents Software/IT 35 Topaz is investing in vessel IT and monitoring
Training 36 Modal Training’s new facility in the northeast of the UK is now open
Insurance 39 IUMI says unmanned vessels and cyber warfare are issues members need to take onboard
Unmanned systems 40 The 2017 Annual Offshore Support Journal conference saw unmanned vessel programmes discussed in detail
Safety flashes 51 Man overboard leads to fatality
Market data 52 Statistics 55 VesselsValue
Next issue Main features include: • Main area report: Southeast Asia & China • Safety • Crewing • Deck machinery (incorporating winches) • Crewboats • Daughter craft and rescue boats.
Front cover photo: Solstad Offshore’s new offshore construction vessel will become part of a ‘mega’ offshore vessel owner if the planned merger of Solstad with Farstad and Deep Sea Supply goes ahead (photo: Vard).
April 2017 volume 20 issue 3 Editor: David Foxwell t: +44 1252 717 898 e: david.foxwell@rivieramm.com Deputy Editor: Martyn Wingrove t: +44 20 8370 1736 e: martyn.wingrove@rivieramm.com Brand Manager – Sales: Ian Glen t: +44 7919 263 737 e: ian.glen@rivieramm.com Sales: Indrit Kruja t: +44 20 8370 7792 e: indrit.kruja@rivieramm.com Sales: Colin Deed t: +44 1239 612384 e: colin.deed@rivieramm.com Head of Sales – Asia: Kym Tan t: +65 9456 3165 e: kym.tan@rivieramm.com Sales – Asia & Middle East: Rigzin Angdu t: +65 6809 3198 e: rigzin.angdu@rivieramm.com Sales – Southeast Asia & Australasia: Kaara Barbour t: +61 414 436 808 e: kaara.barbour@rivieramm.com Production Manager: Ram Mahbubani t: +44 20 8370 7010 e: ram.mahbubani@rivieramm.com Subscriptions: Sally Church t: +44 20 8370 7018 e: sally.church@rivieramm.com Chairman: John Labdon Managing Director: Steve Labdon Finance Director: Cathy Labdon Operations Director: Graham Harman Executive Editor: Paul Gunton Head of Production: Hamish Dickie Business Development Manager: Steve Edwards Published by: Riviera Maritime Media Ltd Mitre House 66 Abbey Road Enfield EN1 2QN UK
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Offshore Support Journal | April 2017
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Disclaimer: Although every effort has been made to ensure that the information in this publication is correct, the Author and Publisher accept no liability to any party for any inaccuracies that may occur. Any third party material included with the publication is supplied in good faith and the Publisher accepts no liability in respect of content. All rights reserved. No part of this publication may be reproduced, reprinted or stored in any electronic medium or transmitted in any form or by any means without prior written permission of the copyright owner.
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COMMENT | 5
‘GRAND COALITION’ IS A NECESSARY STRUCTURAL MEASURE
N David Foxwell, Editor
“MERGERS HELPED REDUCE THE INTENSITY OF COMPETITION”
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ews that a mega-OSV company, or ‘grand coalition’ as it has been dubbed, was to be created in Norway from Solstad – which recently absorbed Rem Offshore – plus Farstad and Deep Sea Supply broke just before the 2017 Annual Offshore Support Journal Conference, Awards & Exhibition got underway in London early in February. Farstad Shipping, Aker Capital AS, Hemen Holding Ltd and Farstad Shipping’s senior lenders, some but not all bondholders and F-Shiplease AS (a subsidiary of Ocean Yield ASA) entered into an agreement for a fully funded financial restructuring of Farstad Shipping. At the same time, the parties to the agreement together with Soff Invest AS and Ivan II AS and Tyrholm & Farstad AS have agreed to work for a combination of Solstad Offshore, Farstad Shipping and Deep Sea Supply Plc following completion of the Farstad restructuring. As the companies said, “As repeatedly expressed by a range of industry experts, the fragmented Norwegian offshore support vessel industry requires consolidation. By agreeing to complete the Farstad restructuring and to work for the proposed combination, senior lenders, bondholders and long-standing family owners supported by industrial investors are making a collective effort to secure a successful refinancing of Farstad Shipping and to create a new and robust OSV company operating out of Norway in the high-end segments of the global OSV industry.” Jon Are Gummedal, chief executive of Deep Sea Supply, said the new offshore vessel behemoth is a “necessary structural measure in today’s offshore support vessel market”. He said the planned merger will enable the combined company to achieve “significant synergies” through “more efficient operations and a lower cost base”. This is a sentiment that I imagine Charles Fabrikant, CEO of Seacor Holdings in the US, who spoke at the conference, would agree with. As he noted in an address to the event, like the
crisis in the sector in the 1980s, the current crisis has taken its toll on owner-operators. Back in the 1980s, government and banks, confronted with the diminished value of collateral, eventually started to foreclose. Investment partnerships were squeezed out of existence. Investors cheered consolidation. Combinations helped improve cash flow, wringing out duplicate overhead, delivering cost saving from purchasing synergies and rationalising deployment of equipment. “Mergers helped reduce the intensity of competition,” said Mr Fabrikant of that period. “It is ironic that the complexity of and cost associated with drilling in deep water, which created a boom in demand for equipment and services, has probably also been an impetus for consolidation in our customer base,” said Mr Fabrikant. “That concentration of our customer base is a factor in our new normal. The last 10 years are the obverse of the 1990s: the customer group consolidated and the boat industry splintered. If the new normal is the situation we see today, then it is a challenging time similar to the years following the 1983 collapse, but perhaps worse. The price of oil may recover more quickly now than in the 1980s, but it will be a struggle for boat owners to scratch out better margins in a world that has so much excess capacity of deepwater vessels, too many operators and relatively few customers. “Will the current generation of sophisticated vessels be as easily returned to service as were the simple boats of the 1970s? Can shale production replace depletion in base load oil production, which is estimated to be between 3–4 per cent, approximately 3.0–3.5 million barrels per day? Will the tailwind of economic development and pursuit of lifestyle be strong enough to overcome the headwinds of conservation, the European bias for renewables and the inexorable march of technology? How long will the era of hydrocarbons last? Is the announcement of the grand coalition in Norway the first of many consolidations in our industry?” he concluded. OSJ
Offshore Support Journal | April 2017
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NEWS FOCUS | 7
US BIDS TO OUST INTERNATIONAL SHIPS
FROM GULF OF MEXICO M
aritime organisations in the US strongly support a decision by US Customs & Border Patrol (CBP) to revoke what the Offshore Marine Service Association (OMSA) describes as “errant letter rulings” and realign interpretations of the Jones Act with what it describes as the ‘true text’ of the statute. If, after the comment period, CBP sticks to its current line, international construction vessels could be banned from the Gulf of Mexico from June. The International Marine Contractors Association (IMCA) says its members’ clients – the oil majors – are concerned about the changes. Even the American Petroleum Institute is said to have doubts about an idea that could, IMCA claims, see costs increase in the Gulf of Mexico at a time when the industry is desperately trying to reduce costs. Projects could be delayed, it says. CBP has been ‘sloppy’ in the past, it is argued, and has created confusion with interpretations of the Jones Act, but the recent revocations will have unintended consequences. If OMSA gets its way, the offshore vessel landscape in the Gulf of Mexico could change overnight. In documents provided to OSJ, OMSA quotes the IHS Petrodata Construction Vessel database which says there was an average of 19.8 vessels working in the region over the last five years. “Given the growth of the Jones Act fleet and recent investments, US companies have more than enough capacity to meet requirements for subsea construction/inspection, maintenance and repair (IMR)
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Bodies such as the International Marine Contractors Association warn of dire consequences if international vessels are banned from the Gulf of Mexico. The Offshore Marine Service Association says there are enough American ships and they are up to the task vessels,” OMSA says. “The need for foreign vessels has disappeared.” It also highlights the fact that it isn’t all doom and gloom for international vessel owners – OMSA says CBP isn’t proposing changes to its interpretation of the Jones Act as it affects heavy lift vessels operations, or its so-called ‘paid‐ out, not unladen’ analysis that permits transportation of pipe by an international vessel. It says accommodation support vessels would not be affected. Although the proposed action does not affect diving operations – because CBP’s position is that they are permissible repair and installation activity – dive support work would be affected if an international vessel is used to transport materials or equipment to the site. The proposed revocation indicates that
the transportation of materials and tools utilized to intervene in a well are ‘merchandise,’ so intervention activity must either be conducted from a Jones Act qualified vessel or the merchandise must be transported to the vessel that is conducting the well intervention or stimulation activity by a Jones Act qualified vessel. This would mean that there would be greater need for tandem operations, with one vessel transporting equipment and a second installing it. However, OMSA also states that the CBP notice “will most intensely impact” operations by subsea construction/IMR vessels, which would seem to leave open a potential threat to more than just construction/IMR vessels. If the CBP sticks to its guns, and OMSA gets its way, where do owners of non-Jones Act vessels who are already in
the Gulf of Mexico on longterm charters stand? How would contractors be placed contractually? Will projects that are being tendered now need to be retendered? No-one really seems to know how it will fall out. What seems at first site like a relatively straightforward decision based on an understandable desire to get people back to work is fraught with complications. The way offshore oil and gas infrastructure is installed and maintained in the Gulf of Mexico undoubtedly would change. IMCA argues that if international vessels are banned a way of working that has helped bring about enormous, positive change in the deepwater Gulf of Mexico over the last couple of decades – that has resulted in significant job creation in the US – would be broken up. OMSA says the consequences of inaction by CBP would be to “put foreign companies first and American companies last,” discourage investment in US infrastructure and “proliferate tax evasion practices” by owners of Norwegian vessels (a claim that Norwegian owners strongly object to). OSJ
US owners have invested in offshore construction vessels and want an opportunity to use them
Offshore Support Journal | April 2017
8 | NEWS FOCUS
NORWEGIAN SHIPOWNERS
REJECT OMSA TAX EVASION CLAIMS THE NORWEGIAN SHIPOWNERS ASSOCIATION HAS REJECTED CLAIMS BY THE OFFSHORE MARINE SERVICES ASSOCIATION THAT NORWEGIAN OWNERS OF OFFSHORE CONSTRUCTION VESSELS OPERATING IN THE GULF OF MEXICO ARE ENGAGED IN TAX EVASION
A
s highlighted recently on a number of occasions by OSJ, US Customs & Border Patrol (CBP) recently announced its intent to revoke several letter rulings that were said to be ‘inconsistent’ with the Jones Act. In documents provided to OSJ, the Offshore Marine Services Association (OMSA) claims earlier rulings “allowed foreign vessels using cheaper foreign labour” that pay “little or no taxes in the US or in their home jurisdictions” to stifle US maritime investment and job creation. OMSA, which supports the proposed revocation of interpretation of the Jones Act, which effectively would ban international offshore construction vessels from the Gulf of Mexico, claims that inaction by CBP on the issue “will put foreign companies first and American companies last, discourage investment in US infrastructure, and proliferate tax evasion practices.” OMSA also claims that if CBP does not take action, it will “create an uneven playing field for US companies, stifling future job growth and economic security and create a US Coast Guard immigration ‘free zone’ and put homeland security at risk.” Sources say the issue arises because of the way
Offshore Support Journal | April 2017
Norwegian-flagged vessels are treated under the US/ Norway tax treaty. “Under this tax treaty,” they claim, “Norwegian-flagged vessels do not pay US income taxes when working in the US because they are paying the Norwegian tax. “While that logic sounds fine, when closely examined, it is not a level playing field. The Norwegian tax is tonnage-based, not revenue-based, but since the merchandise these vessels transport isn’t heavy, but is very costly, and it isn’t transported very far relatively speaking, they don’t pay a tax here, and virtually no tax in their home country.” Responding to the claims, Sturla Henriksen, CEO of the Norwegian Shipowners Association, said: “Norway has a tonnage tax system for shipping companies. The scheme is similar to those found in several other European countries, as well as countries outside Europe, such as Singapore. A tonnage-taxed company pays a tonnage tax (calculated on the net tonnage of its ships), and not a tax on its income. “If a Norwegian owned vessel is engaged in work on the US continental shelf, the work will – as a rule – be done through a US based subsidiary, or alternatively a permanent establishment (PE)/branch in
Sturla Henriksen: “tax situation for Norwegian vessels in the Gulf of Mexico is fair”
the US, cf article 4A of the US/ Norway tax treaty. The vessel will be chartered from the Norwegian company to the US subsidiary, and the charter payment will be determined in accordance with the arm’s length principle (which is the international transfer pricing standard that OECD member countries have agreed should be used for tax purposes). “The US subsidiary will of course be subject to US tax – in the same way as other US companies,” said Mr Henriksen. “And the same will apply to a PE, cf article 5 of the US/Norway tax treaty.” Mr Henriksen said there are two exemptions in article 4A (2) and (3), but they will usually not apply due to the length and nature of the activities). “When calculating the tax base in the US, the company will receive deductions for its costs, including the charter payment to the Norwegian company that owns the vessel. The profit (or loss) will be subject to ordinary US tax. Consequently, in our opinion, it is a fair playing field.” Industry sources on both sides of the Atlantic have highlighted the fact that the recent revocation ruling by CBP has nothing to do with tax evasion, the use of non-US labour, immigration or national security. It only addresses interpretation of the Jones Act. OSJ
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Gulf of Mexico AREA REPORT | 11
INDUSTRY ASSOCIATIONS TOUT BENEFITS OF CUTTING RED TAPE The National Ocean Industries Association in the US wants President Donald Trump to take advantage of what it describes as the “multiple advantages” of releasing more areas for offshore oil and gas exploration and roll-back of regulations affecting the sector, as does the API
L
ate February saw National Ocean Industries Association (NOIA) president Randall Luthi issue a statement in which he highlighted the benefits to the US of opening up more areas off the US coast to exploration and production activity. Released following President Trump’s address to the joint session of Congress, Mr Luthi’s statement said, “As President Trump begins work on his ambitious agenda, it appears that efficiency and cost cutting are major themes throughout much of the federal government. Those of us in the energy producing industries say welcome to our world. “While low commodity prices and overly burdensome regulations devastated job growth in the energy sector during the last two years, it also resulted in greater operational efficiency, particularly in the offshore industry. “Ironically, as the administration begins to unravel some of the regulatory weight and uncertainty, it is also the energy industry that
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can assist the overall economic goals outlined tonight. Not only does a more robust offshore energy industry mean thousands of potential new jobs and billions in new government revenue, it also means lower manufacturing costs, more consumer savings and more energy security. In other words, America’s offshore industry provides a platform for inclusive economic growth and security for all Americans. “However, there is much work to be done, and undone, before we can unlock our offshore resources,” said Mr Luthi. “Due to federal actions of the past eight years, nearly 94 per cent of our nation’s offshore resources are off limits to oil and gas exploration and development. In the few areas that do remain open, costly regulations that provide no safety or environment benefits are pricing companies out of doing business. Because of these challenges, the US will need to adopt an ‘all of the above’ policy approach in order to tap our offshore potential. “NOIA hopes President Trump and his administration
will begin work on a new fiveyear offshore leasing programme that addresses the illogical Atlantic and Arctic Outer Continental Shelf withdrawals. “NOIA also hopes that the administration continues their examination of many of the politically driven regulations and decisions that were issued during the previous administration. In addition, it is imperative that we allow for safe and modern offshore seismic surveys if we are to have an accurate assessment of our nation’s oil and natural gas resources. “NOIA stands ready to work with President Trump, his administration and Congress in helping fuel the American economy. Together, and with policies in place that increase, rather than decrease, access to federal offshore areas, we can strengthen our economy, keep energy affordable for American consumers and further our position as the global energy leader.” At about the same time that Mr Luthi issued his statement, Jack Gerard, president and CEO of the American Petroleum Institute (API), also applauded administration action “aimed at unleashing innovation and creating jobs”. Mr Gerard applauded President Trump’s executive action to establish regulatory reform taskforces at government agencies to identify regulations that could be repealed, replaced or changed. “In the past few years, our industry has faced a regulatory
Randall Luthi: “federal action in the last eight years means that well over 90 per cent of offshore resources are off limits”
onslaught, with 145 new rules and regulations aimed at hindering the development of our nation’s energy resources,” said Mr Gerard. “Today’s action by President Trump will unleash innovation across the nation, and it will allow our economy to grow, help lower energy costs for consumers and help American workers. “We are the number one producer and refiner of oil and natural gas. In order to
Offshore Support Journal | April 2017
12 | AREA REPORT Gulf of Mexico
continue our nation’s leadership on these critical issues, we must have smart, commonsense regulations that will continue to drive innovations in technology and support America’s energy renaissance.” However, Bank of America Merrill Lynch has noted that the President’s plan to “unleash an energy revolution” by reversing regulations could actually cause oil and natural gas prices to tumble in 2018. Domestic oil and gas prices will “suffer” as the US continues to increase its output, analysts including Francisco Blanch, head of commodities research, wrote in a note posted by the bank in early February. “The industry has high hopes for less red tape, a more pragmatic approach to regulation and lower costs of having to comply with climate change rules,” the analysts said, but cautioned that increased production in the US could drive the oil price down, which would reduce the likelihood that oil companies would invest in exploration and production. Speaking at the 2017 Annual Offshore Support Journal Conference, Awards & Exhibition in London in February, Quintin Kneen, president and CEO at GulfMark Offshore, said he expected the offshore support vessel (OSV) market to begin to recover in 2018, as oil companies increase investment. Mr Kneen said GulfMark was coping with the downturn in the OSV market and has cut crewing costs by at least 40 per cent, sold older vessels, accepted different charter terms from oil companies and concentrated resources to meet new efficiencies. However, he said the OSV industry still had too many vessels, too many owners and too much debt. Seacor executive chairman and chief executive Charles Fabrikant said the current downturn was similar to those in the past. He suggested
Offshore Support Journal | April 2017
Charles Fabrikant: “there will be many more mergers and acquisitions and more consolidation in the industry”
Quintin Kneen: “OSV industry has too many vessels, too many owners and too much debt”
that there will be many more mergers and acquisitions and more consolidation. US-based offshore vessel owner Tidewater says it made a net loss in its third quarter, which ended on 31 December 2016, of US$297.7 million, including US$253.4 million in asset impairment charges. Total impairments incurred by the company in the financial year now exceed US$400 million. Since mid-2016, the company has not met the 3.0x minimum interest coverage ratio covenant in its credit and loan agreements but has secured limited waivers for these. The company said it continues to be actively engaged with its lenders and noteholders with respect to a potential restructuring of its debt arrangements. Its goal is to restructure in a way that will provide sufficient liquidity and a covenant package that will allow it to ride out the current market until conditions improve without a material risk of a future default. However, it said that, under all three of the most likely scenarios – a restructuring of its indebtedness without filing for bankruptcy, a negotiated restructuring of the company’s indebtedness under the protection of Chapter 11 or Chapter 11 reorganisation in the absence of a negotiated restructuring – it is likely that shareholders’ ownership interests will, at a minimum, be “significantly diluted”. For its part, Hornbeck Offshore said recently that it has sufficient liquidity to fund operations through the end of 2018 but needs to refinance to meet upcoming debt obligations. Announcing fourth-quarter 2016 results, Hornbeck Offshore said that, as of 31 December 2016, it had a cash balance of US$217.0 million. In addition, the company has an undrawn revolving line of credit with a current borrowing base of US$200 million, which, under certain circumstances, is
likely to be capped at US$75 million during a portion of fiscal year 2017. This credit facility is available for all uses of proceeds, including working capital, if necessary. The company said that, although it remains in compliance with all covenants under the facility, its ability to access the full amount of the borrowing base is subject to an anti-cash-hoarding provision that, pro forma for deployment of the use of proceeds, limits its cash balance to US$50 million at any time the facility is drawn. The company projects that, even with the current depressed operating levels, cash generated from operations together with cash on hand should be sufficient to fund its operations and commitments at least through the end of its current guidance period ending 31 December 2018. However, it does not currently expect to have sufficient liquidity to repay three tranches of unsecured debt that mature in fiscal years 2019, 2020 and 2021, respectively, unless it can refinance or restructure the debt. “Refinancing in the current climate is not likely to be achievable on terms that are in line with the company’s historical cost of debt capital,” said Hornbeck. “The company remains fully cognisant of the challenges currently facing the offshore oil and gas industry and continues to review its capital structure and assess its strategic options.” As of 31 December 2016, the company had 44 OSVs and two multipurpose supply vessels stacked. For the three months ended 31 December 2016, the company had an average of 46.5 vessels stacked compared to 26.8 vessels stacked in the prioryear quarter and 44.1 vessels stacked in the sequential quarter. OSJ
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DYNAMIC POSITIONING | 15
DP conference sees industry address training, trials and new technology Riviera Maritime Media’s European Dynamic Positioning Conference, which took place in February 2017, saw a wide range of issues addressed and new products launched
T
he Nautical Institute has started accrediting training centres to provide revalidation courses for dynamic positioning (DP) operators. This shore-based pathway for DP operator five-year revalidation was introduced in January this year. The Nautical Institute’s chief operating officer Captain John Lloyd said 22 training centres have received accreditation for their DP revalidation simulator courses since the start of the year. He told delegates at Riviera Maritime Media’s European Dynamic Positioning Conference in London in February that the Institute had reduced the time it takes to process DP operator certification from four weeks down to less than two weeks. It was also developing recognition for DP maintenance training courses for technical engineers on DP vessels and for emergency manoeuvring courses for vessels. He expects these will be available from July this year. Delegates at the conference were also told how changes were coming to guidelines and regulations for DP vessels operating in the US. Braemar Engineering director of DP and offshore projects Kyle Eddings said US Coast Guard guidelines have been drafted, and offshore support vessel (OSV) operators are developing their own DP operator accreditation. But he warned that vessel operators are looking to cut costs, which could lead to safety issues arising.
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Peter Solvang, managing director of DP and Marine Assurance Norway, said more vessel operators are using remote and ‘rolling’ DP trials and testing instead of annual tests. He said this would increase vessel safety, reduce costs for vessel operators, enhance early warning of potential faults and enhance the technical knowledge of crew. He said 46 vessels – platform supply vessels and anchor handlers – from five different vessel operators are using rolling DP trials with good feedback and success. The conference also heard that IMO’s Maritime Safety Committee (MSC) is set to discuss and approve new guidance for designing and operating DP systems on vessels. The MSC is also set to discuss and approve DP operator training requirements at its meeting in June this year. These revisions are expected to significantly change the way offshore support vessels are designed and operated in the future. The International Marine Contractors Association (IMCA) has updated its guidelines for training of personnel on DP systems, M 117, which was discussed at IMO’s Human Element, Training and Watchkeeping Sub-committee at the beginning of February. According to IMCA marine technical adviser Andy Goldsmith, the sub-committee recommended that this key documentation is accepted by the MSC at its next meeting. Mr Goldsmith also said the revised IMO 645 circular, covering the guidelines for vessels with dynamic positioning systems, will be discussed by the Ship Systems and Equipment Sub-committee in March. He expects this group will also recommend the revisions to MSC in June. Safety challenges in the offshore renewable industry were discussed by Workships Contractors general manager Philip Woodcock. He said service operation vessels (SOVs), all of which have a form of DP, also need to be communication hubs, marine control centres and accommodation facilities for fleets of crew transfer vessels.
Andy Goldsmith: “the revised IMO 645 circular, covering the guidelines for vessels with dynamic positioning systems, will be discussed by the ship systems and equipment sub-committee”
The latest vessel automation and sensor technology was also revealed at the European Dynamic Positioning Conference. The future of vessel operations and shipping was unveiled by Wärtsilä and GE Marine Solutions at the London conference. Wärtsilä vice president for commercial operations Mark Ford explained how smart prediction units will help the shipping and offshore industries head towards greater vessel autonomy. He explained that SmartPredict will display the expected position of a vessel in the short-term
Offshore Support Journal | April 2017
16 | DYNAMIC POSITIONING
future, perhaps multiple seconds in advance, to help operators avoid incidents and collisions. He forecasts that this could drive the shipping industry to greater levels of autonomous ships. GE’s marine systems solutions director Nick Smith outlined how the shipping industry needs to adopt greater levels of digitalisation. He said this needs to be done as an integrated ecosystem where data is hosted on cloud online assets and data is processed locally on ships using Edge technology. GE offers its Predix open predictive software platform to organisations that wish to write applications for predictive maintenance and remote monitoring of vessels. DP system design and operation was also discussed at the conference. For dynamic positioning, exhibitors at the conference have unveiled new position reference sensors. Veripos has launched the multi-constellation service Apex 5 and visualisation software interface. Oceaneering’s C-Nav has introduced interference resistance antennas, and Positioneering has unveiled its positioning service. Positioneering chief executive Tony Leary told delegates that the system uses primary and secondary positioning methods, one that is precise with 10cm accuracy and the other that is more robust but less accurate. It uses the latest precise positioning and differential techniques. Positioneering has set up an application store so users can download interfaces to different DP systems and has installed these on several vessels operating in Asia. DNV GL has launched a free, online application for vessel operators to test the capabilities of ship positioning and DP. DNV GL senior principal specialist for DP systems Aleks Karlsen said this is based on new standards for stationkeeping assessment, which were published in January 2016. He said there were five levels of assessment, based on the Beaufort scale for wind and sea state. DNV GL also discussed how the offshore industry could adopt closed bustie operations. This involves redundant power systems linked through closed bus ties, which reduces ship emissions but is considered to be prone to faults and failures. The DNV GL group technical authority for DP explained that systems need to be designed for safe operations in closed bus-tie modes and for more testing. Operators also need to consider
Offshore Support Journal | April 2017
“Consultation with our customers guided the development and application of our new range of vessel automation, control and dynamic positioning systems”
more protective functions in DP systems when operating in this mode. GE’s Marine Solutions has unveiled a new dynamic positioning and vessel control system, SeaLyte. Complementing GE’s SeaStream solutions and intended to provide a structured and standardised package for customers in the offshore support vessel market, GE says SeaLyte “offers a range of configurable
Captain John Lloyd: “the Nautical Institute has accredited 22 training centres for revalidation DP courses”
product solutions”. The company says reduced hardware embedded in the system brings reduced complexity, leading to reduced capex. “Consultation with our customers guided the development and application of our new range of vessel automation, control and dynamic positioning systems,” said Tim Schweikert, president and chief executive at GE Marine Solutions. “SeaLyte uses tried and tested technology and offers a range of configurable options in a standardised package to help customers achieve their performance goals more cost effectively.” SeaLyte comprises two stand-alone products: the SeaLyte Vessel Control System (VCS) and SeaLyte DP. Both can be fully integrated into one package or used independently with thirdparty technology. It uses an intuitive touchscreen with high resolution graphics that is suitable for use with third-party subsystems. SeaLyte VCS sits at the heart of a vessel’s automation process. It provides a platform of integrated functions, including machinery alarm and monitoring, machinery and auxiliary systems control, optional power management and mission-specific systems such as cargo handling. Although designed to automate smaller types of vessels, SeaLyte VCS is not restricted in its functionality or class compliance. SeaLyte DP is an automatic position and heading control system with manual and automatic position control, heading control, joystick manoeuvring and a user-friendly interface to ships’ systems and reference equipment. SeaLyte DP is class 1 and class 2 compliant. There are numerous options for the operator station available with different levels of sophistication and corresponding levels of functionality to cost-effectively meet the needs of each shipowner, shipbuilder and DP operator. OSJ
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ON ORDER | 19
DEME’s installation/decommissioning vessel will be a monohull rather than a jack-up
DEME VESSEL TARGETS OFFSHORE WIND AND DECOMMISSIONING MARKETS
I
n 2012, A2SEA, the well known owner-operator of foundation and turbine installation vessels, was developing a new installation with Teekay Corporation. A2SEA got as far as sending out specifications to shipyards to obtain pricing for the project, which was based on the conversion of an oil tanker rather than a jack-up vessel. “We want to be sure not only that the vessel can install foundations but also which types of foundation it can install. Currently, we are looking at using the vessel to install not just jacket foundations but monopiles and others,” said A2SEA. “This information, combined with the pricing for conversion, should enable us to reach a final conclusion on the project’s viability.” As the company also noted, the details of the vessel’s main crane were of vital importance. Collaborating with Teekay, A2SEA planned to take advantage of the former’s long experience of offshore installation and
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LARGE MONOHULLS RATHER THAN SELFPROPELLED JACK-UPS COULD BE THE FUTURE OF THE OFFSHORE WIND INSTALLATION MARKET, A RECENT ORDER SUGGESTS
its experience of operating large vessels controlled by dynamic positioning (DP). “A2SEA is committed to developing an innovative vessel design that can cope with the next generation of foundations,” said the company. “Our aim is to provide a cost-efficient concept that is unrestricted by factors that second-generation vessels face, such as water depth,” said the company.
The idea was that the vessel could take four to seven jacket foundations (depending on size). The vessel will be self-propelled, so we do not need to spend time pre-loading and jacking like some vessels.” Ultimately, A2SEA didn’t press ahead with the plan, but the comment about not needing to spend time pre-loading and jacking was interesting because DEME, whose subsidiary GeoSea has become a well known provider of installation services in the offshore wind industry, has just placed a contract for the construction of a vessel intended to handle a new generation of larger offshore wind turbines and foundations. The vessel, Orion, will be built at Cosco in China for delivery in 2019. Although primarily intended as an installation vessel for the offshore wind industry, it will also be able to undertake decommissioning projects in the offshore oil and gas sector. With a total installed power of
Offshore Support Journal | April 2017
20 | ON ORDER
44,180kW, Orion will be equipped with a high capacity Liebherr crane with lifting capacity of 3,000 tonnes at more than 50m. The crane will be able to lift loads to a height of more than 170m. Deck space on the vessel has been maximised to provide exceptionally high transport and loading capacity. “The vessel can take the heaviest monopiles, jackets, wind turbine components and structures in a single shipment,” said DEME. “With this unmatched combination of high load and lifting capacity, Orion can transport and install the next generation of multimegawatt wind turbines.” A DP3 vessel, Orion will be capable indeed, but perhaps the wider significance of the announcement was that, like the
A2SEA vessel that didn’t quite get ordered, it isn’t a jack-up. Jack-ups have long been the installation vessel of choice in the offshore wind industry. Numerous examples have been built, several have entered service only recently and many millions of dollars have been spent developing and building them, but DEME’s new vessel acknowledges what A2SEA knew five years ago. As turbines get bigger and heavier and foundations get larger and larger, a jack-up probably isn’t going to provide the solution. It looks more and more likely that the installation market is transitioning from jack-ups to floating assets, and DEME’s newbuild is likely to be the first – unless of course Boskalis’s conversion of one of
Heavy-lifting lifting off? Heavy-lift vessel contractors have faced a challenging market in recent years as the low oil price environment combined with a shift towards subsea installation and deepwater activity has seen fixed platform installations decline globally. The number of fixed assets installed in 2017 is expected to be around 45 per cent less than 2014 levels. This has resulted in a difficult outlook for heavy-lift vessels in the market for topside and jacket installation, leading contractors to seek out opportunities in less traditional markets. However, as Kathryn Symes, an analyst at Douglas-Westwood in London, highlighted recently, two bright spots for heavy-lift companies are offshore wind and decommissioning – the former being increasingly attractive as the volume of installed turbines per year grows rapidly and the projects become larger and further from shore. “Though this growth has, historically, been supported by government subsidy, recent (and projected) reduction in capital costs make the technology cost-competitive with conventional forms of power generation,” she noted. “Whilst the market for turbine installation is predominantly covered by purpose-built turbine installation vessels, installation of foundations and substations is accessible to conventional heavy-lift vessels.” A key requirement for entering this market is sufficient deck space, with the ability to carry at least four monopiles typically preferred. Although turbine size, and hence the size of the supporting foundation, are increasing with water depth, it is unlikely that heavy-lift vessels will need lifting capacity over 3,000 tonnes. Crane capacity in the range of 1,500– 3,000 tonnes is suitable for most offshore wind installations. For heavy-lift vessels with a lifting capacity ovwe 5,000 tonnes, decommissioning represents a significant opportunity, particularly within the North Sea, which is characterised by large platforms – around 40 per cent of platforms in the UK and 85 per cent in Norway have a combined substructure and topside weight over 5,000 tonnes. Until recently, the largest single-lift decommissioning operation had been the removal of the Frigg TCP2 MSF, weighing in at 8,500 tonnes. “With the introduction of super heavy-lift vessels such as Allsea’s Pioneering Spirit and Heerema’s Sleipnir (due for delivery in 2019) as well as recent orders from Shandong Twin Marine for two vessels with lifting capacity of 34,000 tonnes, it is hoped that the decommissioning of the North Sea’s heaviest platforms will become more efficient,” said Ms Symes. The offshore wind and decommissioning markets both have a heavy emphasis on cost reduction, and the resultant requirement for cost-effective heavy-lift vessel solutions going forwards will be extremely important. As such, in a market where day rates are often driven by tonnage requirements, super heavy-lift vessels may have a somewhat limited market reach, and vessels that are overspecified will risk lower day rates.
Offshore Support Journal | April 2017
its F-class semi-submersible heavy lifters beats it into service. The offshore mast-type crane from Huisman for that ship is due to be delivered by the end of 2017, which means the Boskalis vessel must be due to enter service some time the following year and might just beat Orion into service. GeoSea managing director Luc Vandenbulcke said, “With Orion, we will be uniquely positioned to meet the future requirements of our customers and the trend towards larger-capacity turbines and bigger windfarm projects, delivering energy at lower costs. Orion will be capable of installing mega monopiles in greater water depths. With DP3 technology, the installation vessel can continue operations under the most challenging conditions.”
Subsea 7 completes acquisition of Seaway Heavy Lifting Subsea 7 has completed the acquisition from K&S Baltic Offshore (Cyprus) Ltd of its 50 per cent shareholding in Seaway Heavy Lifting. Following signing and completion, after close of business on 10 March 2017, Seaway Heavy Lifting and its subsidiaries became wholly owned by Subsea 7. Jean Cahuzac, CEO of Subsea 7, said, “Our investment to acquire the remaining shares in Seaway Heavy Lifting, such that it becomes a wholly owned subsidiary of our group, is aligned with our strategy to grow and strengthen the development of our business in the long-term. “Consolidating Seaway Heavy Lifting into the group increases our participation in renewables, heavy lifting and decommissioning services. “These are areas where we expect market activity to increase and see potential to grow our market share.” The group will report revenues and net operating income from Seaway Heavy Lifting in a new business unit, renewables and heavy lifting. The new reporting structure will be reflected in the group’s first-quarter results, which will be announced on 27 April 2017. OSJ
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CRANES | 23
INTEREST IN MOTION COMPENSATION SYSTEMS
SEES COMPANY WIN INNOVATION AWARD MOTION COMPENSATION HAS BEEN ONE OF THE KEY TECHNOLOGY TRENDS IN THE OFFSHORE VESSEL INDUSTRY FOR SEVERAL YEARS, AS THE WINNER OF THE 2017 INNOVATION OF THE YEAR AWARD AT THE ANNUAL OFFSHORE SUPPORT JOURNAL CONFERENCE, AWARDS & EXHIBITION DEMONSTRATED
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SJ’s Innovation of the Year award is awarded to an innovative product, system or service that is considered to have made a significant impact on the design, build and/or operational aspects of offshore support vessels in service during 2016. The 2017 award went to MacGregor’s 3D Motion Compensator (3DMC) and was the third Innovation of the Year award awarded to the company. MacGregor won the same award in 2014 for its three-axis motion compensated crane and in 2012 for its Chain Wheel Manipulator. The 3DMC is a retrofit device designed to enhance the load-handling precision of offshore cranes. “We are obviously delighted to have won this peer-reviewed industry recognition from one of the most reputable forums in the international offshore sector,” says John Carnall, executive VP, global lifecycle support at MacGregor. “Winning the award for a third time really demonstrates our ability to
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3DMC can be used to compensate for vessel roll, pitch and heave to minimise movement of the load in relation to a fixed point in space
develop and introduce new concepts to the market that have the capability of genuinely transforming offshore operations. “We know how tough market conditions are. We have focused a great deal of effort in developing systems that can cost-effectively improve the equipment that operators already own so that they can become more competitive,” said Mr Carnall. “Any investment must deliver demonstrable operational advantages, and the 3DMC retrofit option does exactly that, allowing a shipowner to expand the load-handling capabilities of a crane far beyond its original limitations. This means that the crane – and vessel on which it is installed – can be used for more assignments, and owners will be able to bid on a wider range of contracts.” MacGregor’s standard active heave compensation (AHC) offering, supplied through a crane’s winch, compensates for a vessel’s vertical movements. However, when very accurate load positioning is required – such as landing loads on small, fixed platforms – the 3DMC can be used. It compensates for the roll, pitch and heave motions of the vessel to minimise any movement of the load in relation to a fixed point in space. The 3DMC can be fitted to the knuckle jib of a broad spectrum of new or existing MacGregor subsea/offshore cranes. It has been designed for easy installation and makes use of the crane’s existing hydraulic power unit and control system. The 3DMC/crane interface is designed so that the unit can be swiftly mobilised to a crane with the relevant fittings. This allows for flexibility within a fleet of vessels, so that one or several 3DMCs can be shared between them. When not required, the 3DMC simply remains fixed to the side of the crane’s main knuckle jib without interfering with the normal lifting
Offshore Support Journal | April 2017
24 | CRANES
capabilities of the main and whip winches. MacGregor also recently introduced a crane compensation system for offshore ship-to-ship load transfers, offering substantially larger operating windows as well as safer and faster load transfers. “This robustly tested technology can offer considerable commercial advantages to the offshore industry,” said Ivar Fjermeros, senior sales manager, advanced offshore solutions. “MacGregor understands the complexity of ship-to-ship load transfers and the limitations imposed by unpredictable, non-synchronised movements in a seaway. With the systems currently available, a crane’s capacity is effectively de-rated because of the conservative approach required to minimise risks associated with the relative movements of the vessels.” The new compensation system employs a motion reference unit on the deck of the secondary vessel. This transmits motion data to the crane on the primary vessel via a high speed redundant wireless link. Combining motion data from both vessels, the system calculates and applies the winch compensation necessary to minimise hook movement at the load-handling zone on the secondary vessel. The system has precise tension and position control for accurate load hook-on, pick-up landing and hookoff. Safety is much improved for the deck crew working in the load-handling zone. Load pick-up and landing is precise, fast and smooth. It allows the operator to employ a less conservative approach to calculating the maximum load that can be safely handled in any given sea state. “The safety benefits mark a significant improvement for offshore transfer operations,” said Mr Fjermeros. “When these are combined with maximising the crane’s
Offshore Support Journal | April 2017
Basic design of CargoSafe has been completed and a patent application has been submitted; detailed design was due to be completed at the end of February 2017
lifting capacity, improved load transfer times and a substantial real-world increase in weather windows for ship-to-ship operations, this system really does offer some groundbreaking benefits.” Another of the shortlisted companies for the OSJ Innovation of the Year award was Safeway for the CargoSafe motion compensation system for cranes, which can also be used to upgrade cranes on offshore vessels to 3D motion compensated functionality First unveiled in late 2016, The Netherlands-based CargoSafe can be used to upgrade shipboard/offshore cranes to full 3D motion compensated functionality. It uses a new 3D-crane jib from Van Aalst Group and comes as a cost-efficient compact add-on, which fits any existing crane. Hydraulically powered by the crane, the unit provides an additional auxiliary hoist, which compensates for ship motions. The controls are integrated into the crane cabin. “All vessel owners know the dangers related to swinging loads due to a vessel’s motions. This causes dangerous situations for the crew and limits vessels’ overall working capabilities.
With CargoSafe, a vessel owner can use their vessel for more jobs offshore. The CargoSafe is a logical step in development from our Safeway 3D technology. We’ve been asked by clients to increase the lifting capacity on our motion compensated gangway, but based on the trend of increased load-handling requirements, we found it useful to develop a smart, special-purpose 3D cargo-handling tool,” said Wijnand van Aalst, CEO of van Aalst Group. The basic design of CargoSafe has been completed, and a patent application has been submitted. Detailed design was due to be completed at the end of February 2017. Other recent news in the offshore crane sector saw manufacturer Liebherr announce that it is to supply a massive crane for DEME Group’s new turbine installation/ decommissioning vessel Orion. The company is to build a heavy-lift crane with a lifting capacity of 3,000 tonnes at more than 50m outreach with a maximum lifting height in excess of 170m. The crane is the largest developed by Liebherr to date. It will be built at Liebherr’s plant in Rostock, Germany.
Delivery will be spring 2019. “It is a great honour to work with both DEME and Cosco (who will build the vessel) on such a revolutionary project,” said Liebherr Offshore Cranes sales director Gordon Clark. “We see a promising future in the heavylift sector, with growth in both the green energy sector and offshore decommissioning.” “The extension of our heavy crane range allows us to compete in a sector with only a few players where there has been little competition of late, and we look forward to winning some of that market share,” said Liebherr Maritime Cranes managing director Leopold Berthold. Apart from the main crane, the deal also includes two of Liebherr’s RL-K 4200 knuckleboom cranes and an offshore crane simulator. Liebherr’s close competitor, The Netherlands-based Huisman, started 2017 at work on the world’s largest bearings at its production facility in China. The two 30m diameter bearings are intended for what will be the world’s largest tub cranes, two 10,000-tonne Huisman-designed cranes that are under construction for Heerema’s new semisubmersible crane vessel Sleipnir. Unlike traditional tub cranes, which make use of either bogies or large wheels for their slew system, the Huisman-designed cranes make use of large bearings of Huisman’s own design, which are manufactured inhouse. The benefit of a bearing is that it allows for a substantial weight saving of the crane. The two bearings for the 10,000-tonne tub cranes for Sleipnir are segmented. The design of the bearings allows for inspection of the rollers without disassembly of the bearing. The assembly of the first bearing has been completed at Huisman China, and the assembly of the second bearing is scheduled to start in March of this year. OSJ
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BRIDGE SYSTEMS | 27
NEW BRIDGE SYSTEMS
BEING DEVELOPED THROUGH COLLABORATION Transas, Japan Radio Co and Alphatron Marine have joined forces to develop the next generation of vessel e-navigation solutions
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orking together, Transas, Japan Radio Co (JRC) and Alphatron Marine plan to combine research and development to deliver hardware and software that will improve navigational safety and ship performance during voyages, said Transas chief executive Frank Coles. He said the latest partnership will involve JRC’s sensors, such as radar, Transas’s software and Alphatron’s integration experience to compete with the major players. These companies will collaborate to develop further vessel automation, data applications, fleet operations and simulation. Mr Coles said the partnership will help deliver the Transas Harmonised Eco System of Integrated Solutions (Thesis) platform. This will bring together fleet operations with the Transas Academy, vessel bridge systems and ship traffic control. “We are talking with JRC to use their sensors, such as radar, with Transas software,”
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said Mr Coles, “so Transas can sell JRC radar and JRC can sell Transas software in a package. We are also working with Alphatron Marine, which is experienced in bridge integration, so we can compete with the major players in this field.” The first new development from the partnership is expected to be an electronic chart plotter that is driven by Transas software and can use JRC radar and other sensors. JRC marine solutions engineering deputy manager Hidetaka Matsuyama agreed that the companies are proactive in driving forward this partnership for fleet monitoring, integrated bridge systems that use Transas ecdis and JRC radar, and the training technology. “This is so we can act together in a combined way,” he said. Raytheon Anschütz is about to launch its new Ecdis NX that it said was designed by users and not just software engineers. According to product manager Björn Schröder, Raytheon explicitly considered the human element in all stages during software design to create user-friendly applications and intuitive functions. It used feedback groups that included selected captains, nautical officers and trainers, as well as shipmanagers, seafarers, pilots, academic lecturers and maritime students. Mr Schröder said this created a wish list of functions and requirements. These were forwarded to the software
Frank Coles: “We are talking with JRC to use their sensors, such as radar, with Transas software”
engineers and product managers. This led to a prototype of Ecdis NX that included “a basic screen layout and allowed the demonstration of essential tasks and use cases such as route planning”, he explained. The requirements from International Electrotechnical Commission standards were also used to develop the Ecdis NX for integrated navigation systems. In December 2016, captains and all the other contributors were invited back for a final external review in multiple sessions. “The feedback again indicated an intuitiveness of use throughout the different tasks as well as supportive functions that actually provide assistance to the operator,” said Mr Schröder. Ecdis NX will be unveiled in May this year. Meanwhile, after spending 10 years with Maersk Supply Service, Peter Faurhøj has co-founded what he calls the Uber for marine electronics and communication systems. He left Maersk Supply Service, where he was head of navigation and communications systems, in January 2017 to co-found NautiCom Marine. This company has created a
network of freelance bridge engineers for installation projects. “From these groups, we can use people to meet owner requirements,” he said. Engineers can also be used for fixing radar, VSAT, radio and other bridge equipment. Mr Faurhøj said this brings flexibility to helping different vessel owners. “They want flexibility in people, so we send just one person to the vessel to fix everything on the bridge, and we have spares to order and can arrange technical courses. He added, “This is the Uber or Airbnb for marine electronics and communications. We organise the engineers in a more constructive way.” He said this came from lessons he learned on installation projects on Maersk Supply Service vessels, where some engineers are more focused on projects than others. OSJ
Offshore Support Journal | April 2017
28 | DIVE SUPPORT VESSELS & EQUIPMENT
Oceanica takes delivery of another DSV Oceanica in Rio de Janeiro in Brazil has taken delivery of Oceanicasub V, the second vessel of a pair of monohull diving support vessels that will be chartered to Brazilian oil company Petrobras
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esigned by Incat Crowther in Australia and constructed by Arpoador Shipyard in Guarujá, Brazil, Oceanicasub V is a 43m vessel and is classed by RINA. The new diving support vessel (DSV) is fitted with an array of support equipment, including a deck crane, an A-frame for a remotely operated vehicle, another A-frame for
Oceanicasub V has an A-frame for ROVs, another A-frame for a dive bell, and a hyperbaric chamber
a diving bell, a hyperbaric chamber, a high precision acoustic positioning (HIPAP) system, rescue/workboat with associated davit and all necessary diving operationsrelated spaces and equipment. Crew accommodation and operational spaces are finished to a high standard, and the layout of machinery and open deck spaces are well thought out to provide safe operations.
As a result, the vessels are said to be exceeding expectations of both operator and charterer. Four Cummins QSK-19 660 bhp main engines coupled to Hamilton HM 521 waterjets through ZF 2000 gearboxes provide propulsion power to the vessel. The waterjet propulsion was selected to reduce diver risk. Electrical power is provided by three Cummins QSM 11 300 ekW gensets plus one Cummins
6BT5.9 92 ekW emergency genset. Three Thrustmaster 150kW tunnel thrusters enhance manoeuvring. Class 2 dynamic positioning is provided via a Kongsberg system, and a quartet of Intermarine fin stabilisers are provided to reduce vessel motions and enhance crew comfort. In other news, Subsea 7 has taken delivery of Seven Arctic and Seven Kestrel, completing a substantial investment programme that has added six newbuild vessels to its fleet since 2014. Seven Kestrel is a DSV certified by DNV GL, encompassing an 18-man twin-bell saturation diving system rated to 300m water depth. Seven Arctic is a heavy construction flexlay vessel designed to meet the demands of deep water and harsh environments. Capable of working at depths of 3,000m, the vessel features a 1,000-tonne offshore crane and a 600-tonne top tension (tiltable) lay system. The vessels were designed by Subsea 7 engineers in collaboration with Hyundai Heavy Industries Shipyard in Ulsan, South Korea, and Wärtsilä Ship Design, Norway. Both vessels will now transit to the North Sea for further crew familiarisation before commencing operations in the spring.
Bureau Veritas issues rule note for diving systems Classification society Bureau Veritas has issued a new rule note covering the classification of diving systems, NR610, which sets out requirements for the classification of professional diving systems ranging from surface-supplied systems for shallow-water diving to complex saturation systems for deepsea diving. The rules deal with the main safety issues in diving, including human occupancy in pressurised chambers, supply and distribution of mixed breathing gas, safety of oxygenenriched environments, fire protection, fire-fighting and means for hyperbaric evacuation of divers in case of ship abandonment. They are consistent with the IMO Code of Safety for Diving Systems and recommendations from the International Marine
Offshore Support Journal | April 2017
Contractors Association. The requirements were developed to be compatible with the IMCA recommendations. The note addresses the scheme of certification of the diving subsystems, such as diving bells, deck chambers, launch and recovery systems and self-propelled hyperbaric lifeboats, and also provides detailed requirements for the design and construction of pressure vessels for human occupancy, life support systems, including breathing gas supply, distribution and temperature controls, and communication systems. The new rules are currently being applied in a high specification dynamic positioning (DP3) newbuild DSV with integrated diving systems offering both saturation and surface-supplied diving capabilities. OSJ
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OFFSHORE ACCESS | 31
Integrated offshore access system takes walk-to-work to the next level Olympic Shipping is the first customer for a new type of offshore access system that is integrated into the ship’s dynamic positioning and management systems
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peaking at the Offshore Wind Journal conference in London on 7 February 2017, Gijsbert de Jong, market segment director, offshore service vessels and tugs at Bureau Veritas, said he foresees a number of trends in the offshore oil and gas and offshore wind sectors, among them the need for new types of vessels and new, more capable walk-to-work offshore
access systems, and it would seem that new more capable offshore gangways are indeed about to enter service. As reported in the March 2017 issue of OSJ (see pages 27–31), manufacturers of offshore access gangways say clients are looking for systems with greater capacity – including transferring equipment – and the ability to work at a range of heights whilst having a
minimal footprint. Walking to work across a gangway has become commonplace for technicians in the offshore oil and gas and offshore wind industries. Early, first-generation systems provided the ability to transfer personnel from vessels to a fixed structure, but a new generation of walk-to-work technology has recently been introduced that enables technicians and their equipment to be transferred from a suitably sized vessel direct to an offshore platform, wind turbine or other offshore structure, such as a substation. Now, it seems, another trend is emerging, with the control and operation of the offshore access system increasingly integrated into
the control systems on the vessel on which it is fitted. Far from being stand-alone piece of equipment bolted onto the deck of a vessel, these nextgeneration units would be integrated into the ship in a far more extensive sense. February 2017 saw Kongsberg Maritime confirm that Olympic Shipping in Norway would be the first customer for its K-Walk integrated vessel gangway solution, which integrates a motion compensated access system with a ship’s dynamic positioning and management systems. The K-Walk motion compensated gangway is to be installed on the multipurpose platform supply
The K-Walk motion-compensated gangway is to be installed on Olympic Orion will be integrated with the ship‘s management and DP systems
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Offshore Support Journal | April 2017
32 | OFFSHORE ACCESS
vessel (MPSV) Olympic Orion and will be integrated with a Kongsberg information management system (K-IMS) and the ship’s existing K-Pos dynamic positioning (DP) system. The vessel is due to be upgraded in the latter half of 2017. In addition to integration with the ship’s K-IMS to enable mission and route planning for increased service capability in offshore windfarms, the system also connects with the DP and a planning station. In this way, says Kongsberg, the system extends vessel availability by increasing the operational weather window. “Integration of K-Walk with K-IMS is a unique approach that enables in-depth mission planning, resulting in increased productivity and efficiency by finding the preferred route for increased service capability
within a windfarm,” claimed Kongsberg Maritime. “Combining integrated mission planning, automated vessel manoeuvring and gangway hook-up, K-Walk introduces a step-change for increasing efficiency and productivity for walk-towork operations of a type that are integral to windfarm construction and maintenance projects,” Kongsberg claimed. “While providing a completely safe, motion compensated gangway for the transfer of personnel and materials, integration enables a more efficient approach and connection to turbines and other structures and enhances logistics.” The system is activated prior to entering a wind turbine’s safety zone, reducing vessel speed and launching the K-Walk hook-up process
during approach. Because of the integration with the DP, the gangway is able to move into position while the vessel is still moving, positioning it safely as the vessel arrives on station. As highlighted above, the system will be connected with Olympic Orion’s DP system, offering increased operability with a new operator environment, which the company says will require less manpower and has minimal training requirements. The K-Walk solution for Olympic Orion will have an integrated lift system for the transfer of people and equipment, including electrically driven trolleys (which are currently under design) for movement of pallets across the gangway. “Overall, K-Walk significantly enhances operational efficiency, which improves
productivity, with the ability to serve more wind turbines within the same timeframe,” the company claimed. Olympic Subsea’s chief operating officer Bjørn Kvalsund said, “We see potential to install this integrated gangway solution onboard several of our vessels to provide walk-to-work services into an expanding and interesting market segment.” Kongsberg Maritime executive VP, global sales and marketing Stene Førsund said he believes K-Walk will enhance decision making and management during transfer operations and make those operations safer, more predictable and efficient. It will enable better, real-time and long-term management decisions and empowers safer, more predictable and efficient operations through
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OFFSHORE ACCESS | 33
reduced human interaction and automation based on the deep integration of critical systems onboard.” In other recent developments, 6 February 2017 saw Safeway BV conduct the first transfer of personnel using its Seagull motion compensated gangway for the offshore oil and gas and offshore wind industries. The transfer was made from Assodivers’ vessel Aethra to Total E&P Nederland BV’s platform L7C. The Seagull offshore access system has been in development for some time, and the company is now ready to market it. Total’s logistics manager Huib Giesberts was present during the first transfer and said he was “impressed” with the system. Total E&P Nederland BV is looking at the use of gangways to access manned and unmanned platforms. Aethra is certified as a special purpose ship (SPS) and is a dynamic positioning class 2 construction support vessel. It was fitted with the Seagull earlier this year. The vessel has accommodation for 87 people and can host up to 50 technicians as ‘industrial personnel’ (IPs) or ‘special persons’ under IMO rules and regulations. The Seagull motion compensated gangway is approved by Bureau Veritas and will remain on Aethra for the time being. Safeway plans to offer gangways for purchase and rental Ampelmann has recently celebrated 100,000 safe transfers utilising the L-type system adopted by Brunei Shell Petroleum (BSP). The L-type system is installed on a fast crew vessel for daily crew change operations. The L-type has been operating in Brunei for over two years. Gerbrand Marbus, manager crew change at Ampelmann, said. “We are
seeing greater focus in the offshore industry on the safety and cost of existing crew change operations. “At Ampelmann, we are committed to innovation. We now have a new L-type range, able to continuously transfer up to 10 people a minute in 2.0 m significant wave height. This unit can
be easily transported in a standard container and only needs a single operator. The improvements can provide a further 30 per cent reduction in the cost of a marine spread and crew costs compared to the alternatives,” he claimed. Ampelmann said it is continuing to make good progress with the construction
of its first access system for operation in ice-prone conditions, Icemann. Assembly of the equipment bay, hexapod and transfer deck are progressing well in the company’s assembly facility. Another milestone was reached recently with functional testing of the hexapod. OSJ
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SOFTWARE/IT | 35
Topaz invests in offshore vessel IT and vessel monitoring
A
ccording to Topaz chief executive René Kofod-Olsen, all of the senior officers on its fleet of more than 100 vessels are being given tablet computers to improve communications. The vessel owner has also invested in seafarer training to prepare crews for taking on more responsibility for onboard operations. Topaz is also investing in the remote monitoring of vessels operating in the Middle East, the Caspian Sea and West Africa for fuel efficiency, planned maintenance and security reasons. “We are investing a lot in IT and rolling this out to the vessels over the next six months,” Mr KofodOlsen told delegates at Riviera’s Annual Offshore Support Journal Conference in London, in February. “Our captains and officers will be getting iPads on ships for company communications. Our engineers, captains and senior officers are asked to be IT experts, as they operate on technically-advanced ships. So we need to provide them with the right equipment, so they can communicate with the shore.” Topaz has also invested in vessel tracking technology, so it can monitor the fleet. This is for monitoring fuel efficiency, planning maintenance and spending less on drydocking. Mr Kofod-Olsen explained why these are important reasons to invest: “We need to plan six to eight months before a drydocking to reduce the downtime of the vessel, as this affects us in terms of yard costs and loss of revenues.” He
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Topaz Energy and Marine is investing in onboard information technology and seafarer training to improve competencies on its offshore support vessels
René Kofod-Olsen: “We are investing a lot in IT and rolling this out to the vessels over the next six months”
added: “We monitor the fuel in remote regions because we have seen fuel and lubricant theft on our vessels.” Topaz is also using a Microsoft-based IT platform to analyse and manage its commercial operations. "This helps the company see the benefits in operations, understand why we have not won certain business, and see what is working well,” said Mr Kofod-Olsen. But Topaz’s biggest operational investment is in the seafarers working on its vessels. “We are empowering the crew by giving them more responsibility,” he said. “Otherwise, they feel disfranchised if shore managers take away more of the decisions. We are giving our crew the resources to make more decisions on board. We are taking expertise back to the ships and asking more from the captains. So, we need more crew training to improve competence on the ships.” He commented: “There is no replacement for expertise, not even with artificial intelligence.” Also at the conference, OSM Maritime Group chief operating officer Oddvar Solemsli said seafarers need to be retrained with more IT knowledge. “Smart shipping will have a huge impact on offshore support vessels,” he said. “More automation and IT on the vessels will have an important impact going forward. So, we may see a change in the type of crew, with more enabled, technology-aware seafarers. The human element is still important,” he said.
Mr Solemsli added that more simulator training facilities were needed in areas where crew wanted to be trained. He commented: “Training needs to be stronger in the offshore support vessel sector as it is the most important investment. We have our own simulators in Manila in the Philippines”. Caterpillar Marine, which was the platinum sponsor for the conference, has developed asset intelligence together with multi-engine load management to improve performance and reduce costs on offshore support vessels. Caterpillar offshore segment manager Bart Long explained how vessel operators can predict faults before they happen using the analytics in the Cat Asset Intelligence service. He said: “In a recent test, we had a digital system on board a vessel for a few months, and within a few weeks we identified that the number two diesel generator was burning 5 per cent more fuel than others that were on similar modes. This suggested that something was wrong and that perhaps the generator was due an overhaul.” Royston, which won the Offshore Support Journal Environmental award, is developing algorithms for monitoring total energy consumption on vessels, including engines, generators, accommodation lighting, ventilation and air conditioning. Damian McCann, manager of engine products, said Royston will also be developing methods for measuring vessel trim and gaseous emissions. OSJ
Offshore Support Journal | April 2017
36 | TRAINING
TRAINING ‘CENTRE OF EXCELLENCE’ ON THE HUMBER
OPENS ITS DOORS
A
t the heart of the £7 million (US$9 million) training facility is a simulator training suite that, it is hoped, will attract trainees from throughout the UK and around the world and play a role in addressing the anticipated shortfall in qualified British seafarers, which is expected to grow to more than 4,000 in the next seven years. Modal Training’s simulator centre is equipped with marine simulators from Kongsberg Maritime. The company claims to be the first independent training organisation in the UK to offer such a comprehensive range of Kongsberg ship, offshore vessel, engineroom, dynamic positioning (DP), radar and vessel traffic system (VTS) simulators. The simulator suite includes a class A full mission K-Sim offshore vessel simulator with a fore and aft bridge, DP2 dynamic positioning and anchor handling. The full line-up of Kongsberg simulators at Modal Training includes a K-Sim class A offshore vessel simulator with a fore and aft bridge, a K-Sim class B tug simulator, a K-Sim class B offshore support vessel simulator, a K-Sim class C dynamic positioning simulator, a K-Sim engine and control room simulator, a K-Sim navigation simulator and a K-Sim VTS simulator.
Modal Training, a new centre of ‘training excellence’ for the maritime, ports, energy and logistics sectors, has opened in Immingham on the south bank of the Humber “This suite of simulators means we can offer training that effectively replicates the working environment, including deck and engineering officers and crew, marine pilots and VTS operators,” said the company. At the heart of the new centre is the class A full bridge K-Sim offshore vessel simulator with a fore and aft bridge, DP2 dynamic positioning with K-Pos interface and anchor handling. Modal Training claims it is one of just three in the world to be configured in this way for offshore training. Others are located in Norway and Singapore. Modal Training business development manager Ella Brown said the company was also working with Offshore Simulator Centre (OSC) AS in Norway to create a sophisticated crane driver simulator training suite. The suite of equipment will be unique to Modal Training’s facility.
Modal Training’s new facility in Immingham has a suite of simulators from Kongsberg
Offshore Support Journal | April 2017
“The OSC suite will see individuals train to drive all types of cranes across a wide range of portside and offshore operations. We can facilitate training for cranes that are used on vessels and rigs, both to move items between the two and vessel to vessel. The simulators are designed to give trainees the skills and experience they need to work on all of these,” she said. “Importantly, the crane simulators can also be used to simulate operations with bridge and remotely operated vehicles. This will allow whole teams of crane drivers, deckhands and offshore vessel operators to train together in a wide range of critical scenarios.” Sam Whitaker, group director strategic projects at Modal Training, said, “As well as being Europe’s fourth-largest trading estuary and the UK’s largest and busiest multipurpose ports complex, the Humber is home to the UK’s rapidly developing wind energy sector. Our aim therefore is to meet the training needs of the many global businesses that are establishing themselves around the Humber, as well as providing a new and valuable opportunity for individuals and existing businesses to train locally. We are also keen to play our part in addressing the anticipated shortfall in qualified British seafarers, which is expected to grow to more than 4,000 in the next seven years – as recently predicted by the UK Seafarer Projections report.” When the accreditation process is complete, the new Kongsberg simulation suite will be used to deliver a wide range of courses including bridge resource and team management, DP, ecdis, navigation and radar, GMDSS, human element leadership and management, high voltage, engineroom and VTS. In the meantime, it can be hired either for bespoke training or process development work. OSJ
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INSURANCE | 39
IUMI PUTS THE SPOTLIGHT ON UNMANNED VESSELS AND CYBER SECURITY The International Union of Marine Insurance says unmanned vessels and cyber security are among the key issues and challenges marine insurers need to address
A
mong the issues that were addressed at the International Union of Marine Insurance’s (IUMI’s) most recent conference, the title for which was ‘effective underwriting in a changing environment’, were the increasing technological challenges faced by the marine industry due to complex risk, new technologies and digitalisation and depressed oil prices and their impact on the risk management approach of the oil industry and increasing pressure on the offshore energy insurance market. One technical challenge that has come to the fore recently is unmanned vessels, which Helle Hammer, managing director of Cefor (the Nordic Association of Marine Insurers) and chair of the IUMI political forum, highlighted in a recent piece ‘Autonomous vessels – a not so remote possibility?’ in IUMI’s newsletter. As she noted, on 1 November, the UK’s Automated Ships Ltd and Norway’s Kongsberg Maritime announced a memorandum of understanding to build the world’s first unmanned and fully automated vessel for offshore operations, which is expected to be in operation in 2018 (see elsewhere in this issue). “Unmanned vessels are gaining acceptance from industry and governments as research and innovation bring the possibility of unmanned vessels closer to realisation. An unmanned vessel can be both remote controlled or fully automated. Most likely, there will be a number of variations and a stepwise progress towards this, in which automated technologies will be used to support decisions and perform
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certain manoeuvres,” she noted. However, as she also noted, for unmanned vessels to become a reality, the regulatory framework must be in place. “Requirements concerning the person in command of a vessel, sufficient manning, training and proper lookout will have to be amended in international conventions (Solas, STCW, COLREG). “The amendment of IMO conventions is time consuming, and although the process has barely started, it is likely to gain support, and IUMI intends to be a part of these discussions,” she explained. “Consequently, the issue has now been added to the political forum’s current list for monitoring as discussions evolve.” In addition to the regulatory and liability aspects of unmanned units, she noted that insurers need to address the risks related to new technology and the internet of things. “Cyber attacks, connectivity, complex technologies and autonomy-assisted accidents are among the challenges,” she said. “Insurers will expect classification societies to become involved in the approval of big data and automated
IUMI is working actively to address the insurance issues around the potential use of unmanned vessels and cyber security
operational procedures in order for these to be insurable in the future.” Increasing concern about the potential of cyber attacks on shipping and offshore units was addressed by Frédéric Denèfle, legal and claims manager at GAREX, France, and IUMI’s legal and liability committee chairman. He described a recent Willis Towers Watson report published in October 2016 as a “breakthrough” in understanding cyber risk threats for the transportation sector as a whole, including shipping. The annual IUMI conference also served as a useful platform to discuss the methodology behind safeguarding a shipowner’s IT system from cyber attacks. BIMCO’s guidelines and a presentation on cyber security at the conference addressed not only the concept of a cyber risk attack but also the various processes that should be safeguarded. A presentation from TECNITAS provided the methodology to build a ‘protective fence’ using both technical and internal human resources and, in so doing, reduce risk. Mr Denèfle said the Willis Towers Watson report gives precise examples of key cyber-attack targets in the transportation industry, which is at the heart of IUMI’s business. The report highlighted the concern of the whole transportation industry and how this new risk could materialise. With recent experiences of losses and some loss scenarios, these can now be clearly analysed and quantified. “This creates a strong pillar for IUMI to monitor the various underwriting issues that marine and transportation insurers may face,” Mr Denèfle said, “and allows for open dialogue with all stakeholders exposed to these technical threats. “Technical developments on ships are clearly heading to a more autonomous level, either remotely and/or with less crew, and most likely an increased use of IT devices to maintain and supervise machinery and/or cargo handling onboard. In order to understand how cyber threats can be managed, considering both the property and liability aspects, we will need to discuss this extensively.” OSJ
40 | UNMANNED SYSTEMS
First autonomous OSV set to be delivered in 2018 The first autonomous offshore support vessels could be in operation in 2018 as technology leaders develop them for various offshore applications
T
here are also developments in remote control tugs, as interest in unmanned operations increases. The benefits of using unmanned vessels would be a reduction of the risks to offshore workers, the removal of some elements of human error and lower operating costs. Kongsberg Maritime, Rolls-Royce, Damen Shipyards Group and DNV GL presented their expectations of developments in autonomous vessels at Riviera’s Annual Offshore Support Journal Conference, Awards & Exhibition in London in February. Kongsberg is probably the closest to launching a commercial autonomous vessel. It is collaborating with the UK’s Automated Ships on the world’s first unmanned vessel for offshore operations, to be named Hrönn. That vessel could be in operation in 2018. Kongsberg executive vice president for global sales and marketing Stene Førsund said that initially Hrönn would be capable of light offshore duties in a remote control mode. But eventually it could be fully autonomous. He described the technologies that enable autonomous vessels. “Digitisation expands the scope for the remote control of vessels and we are developing algorithms for autonomous operations,” he said.
Stene Førsund: “the autonomous vessel Hrönn should be ready in 2018”
Offshore Support Journal | April 2017
Kongsberg vice president for maritime digital platforms Matt Duke described some of the technologies that would enable autonomous vessels. He listed the internet of things, cloud services, big data analytics, remote services, artificial intelligence, virtual and augmented reality, 3D visualisation and cyber security as key technology trends. “In cyber-physical interactions, the internet of things and cyber secure networks are essential. For autonomous vessels, we need high levels of quality assurance, redundancy and the use of standard equipment to reduce any issues. We need to validate equipment before it goes into service and we need to use condition-based maintenance during service,” said Mr Duke. DNV GL is involved with Kongsberg in the Hrönn project, and in other autonomous vessel developments. This was highlighted during a presentation by Bjørn-Johan Vartdal, the class society's programme director for strategic research and innovation. He described the rule requirements for autonomous and remotely controlled vessels. He also suggested that human interaction should remain part of the process in some form, whether for supervisory purposes or for making offshore decisions. DNV GL is also working with Rolls-Royce and Inmarsat in the development of autonomous vessel technology. Rolls-Royce vice president of innovation, engineering and technology Oskar Levander described how unmanned cargo supply vessels and control units for remotely operated vehicles could be developed. He predicted that one of these would be taken into operation by 2020. Mr Levander expects that the early steps will be taken in the form of the remote monitoring and control of engineroom systems and semi-autonomous navigation functions. He added that more intelligent vessels could improve operations, enhance safety by reducing the human error factor, and lower operating costs. He presented the concept of an autonomous supply vessel, which would be used to ship small cargoes out to platforms on a daily basis. “We can afford to do this, if we do not have many people involved,” Mr Levander said. “We lower costs, we do not need crew, and we optimise cargo flow.” He also presented a concept for an autonomous surface vessel for deploying remotely operated vehicles (ROVs). “It would be a floating power and communications unmanned vessel that is remotely controlled from shore. This means that ROVs would be operated from shore. This could transform offshore operations and lower operating expenditure.” Damen Shipyards research and development project manager Bas Blaak described how the company was developing many of the technologies that would be required for remotely controlled and autonomous vessels. “By defining the levels of autonomy intelligently it is possible to define a logical and organic road map towards an autonomous vessel,” he said. “We are developing the concept of an autonomous platform supply vessel with reduced size, but carrying the same payload,” he concluded. OSJ
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BEST OF THE WEB | 43
BEST OF THE WEB
osjonline.com
Ezra Holdings’ outlook clouded by multiple issues Ezra Holdings owns a number of struggling business units and is financial guarantor for several of them
Fugro expects further decline in revenue Fugro says it expects a further significant decline in revenue in the first half of 2017, although it believes the decline will be less severe than in 2016, with ongoing margin pressure. It believes its revenue decline will bottom out towards the latter part of the year and it will have positive cash flow for the full year. Fugro’s chief executive Paul van Riel said, “The downturn in our largest market, oil and gas services, continued unabated in 2016. We had to take the painful decision to cut yet more staff positions. We reduced capacity and cost, and at the same time, we succeeded in strengthening our market positions. This could not, however, offset increased price pressure. Our focus on cash flow again paid off. We generated substantial cash flow resulting in a significant reduction of net debt.” http://bit.ly/2mlzzbK
Emas Offshore says Emas Chiyoda Subsea’s financial problems and its recent Chapter 11 bankruptcy filing will have a “negative effect” on holding company Ezra Holdings. Ezra Holdings also faces the possibility that Forland Offshore could apply for a winding up order against it. “The Emas Chiyoda Subsea Chapter 11 filing may have a negative impact on Ezra and its subsidiaries and associated companies, including the group,” said Emas Offshore. “The company is therefore currently seeking advice on the ECS Chapter 11 filing as well as assessing the impact of such filing on the group. The group will work closely with its principal bankers to review all options to finalise the provision of additional working capital facilities as well as the documentation of the refinancing of its financial obligations.” Emas Offshore also said that, although it recently reached in-principle agreements with the substantial majority of its principal bankers on the refinancing of its financial
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obligations and the provision of additional working capital facilities, completion of the documentation for the ongoing initiatives, which were originally targeted to be concluded before the end of the second quarter of financial year 2017, has now been delayed. The company has sought an extension from its principal banker to complete the process. For its part, Ezra Holdings has issued a statement referring to announcements made by the company in relation to the statutory demands received from one of its lenders and in relation to a claim by Forland Subsea on the parent corporate guarantee provided by the company. The guarantee is in respect of the outstanding charter hire payments owing by Emas AMC AS. Ezra Holdings said the deadline for payment of these demands has expired, and the creditors are at liberty to apply for the company to be wound up by the High Court of Singapore. http://bit.ly/2mSmvH6
Magseis reports its strongest ever quarter Ocean bottom seismic (OBS) specialist Magseis has reported the strongest quarter in its history with all-time high revenues and EBITDA. The final quarter of 2016 saw it awarded a contract by ConocoPhillips for a 4D seabed seismic survey in the North Sea. Production is progressing according to plan together with BGP on Saudi Aramco’s S-78 project. The company, which uses seabed sensors to provide clients with geophysical data, had revenue of US$20.0 million (US$5.5 million in the same period in 2015). It reported EBITDA of US$5.5 million ›››
Offshore Support Journal | April 2017
44 | BEST OF THE WEB
››› (US$-6.3million in 2015), EBIT of US$1.9 million (US$-10.8 million in 2015) and net income of US$0.1 million (US$-11.2 million in 2015). The company’s chief executive officer Idar Horstad said, “This caps a year Magseis has made great progress towards our goal of becoming the industry’s leading provider of OBS data. We have conducted continuous multi-vessel operations, operated a rolling spread of more than 4,000 nodes and provided seamless operations in areas with unparalleled variations in water depth, seabed topography and climatic conditions.
Dundee takes next step in offshore decommissioning plan
http://bit.ly/2lMvn3P
Siem Offshore refinancing dependent on bondholder support
Investment in newbuilds sees Sentinel Marine win new contracts Sentinel Marine in Aberdeen has secured new contracts and extended existing contracts to the combined value of £17 million (US$21 million). The awards include a contract with Nexen Petroleum UK Ltd for the provision of rescue and recovery services for the Nexen-operated Golden Eagle and Buzzard fields over a four-year period. The work will be carried out by the multirole emergency response and rescue vessel (ERRV) Fastnet Sentinel. The contract also includes options to extend its duration. http://bit.ly/2lvse4w
Port of Dundee’s prospects of becoming a decommissioning hub have taken another step with the appointment of the contractor to construct a new quayside at the port specifically designed to handle this work. Following a tender process, Forth Ports, owner of the Port of Dundee, has appointed Southbay Civil Engineering to deliver the project.
Having received the support of its lenders for its finance plan, Norwegian offshore vessel owner Siem Offshore says its future as a going concern requires agreement from bondholders, which it will now seek. In a statement about its fourth quarter 2016 and full year 2016, the company said the OSV market continued to be depressed during the fourth quarter with an increase in the number of vessels in layup. “Low activity within the oil service industry has
Editor’s selection: Why Polar Code operations need a second line of defence The case for owner/operators, insurers, vetting inspectors and the industry supply chain to undertake independent risk assessment of polar operations as a complement to the requirements of the Polar Code.
Offshore Support Journal | April 2017
http://bit.ly/2m71SJW
led to reductions in chartering rates and increased idle periods. Going forward, we believe the excess vessel capacity will last for several years and continue to make the market difficult and might force owners to put more vessels into layup. The charter rates and margins are below what is sustainable for the industry in the long run,” the company said. http://bit.ly/2lsZsEE
Weak offshore sector sees Boskalis hit by impairments Dutch dredging, marine and offshore contractor Boskalis says that, due to what it called “strongly deteriorated market conditions” in the offshore energy sector, it will report a non-cash
To view more whitepapers visit the Knowledge Bank at www.osjonline.com
www.osjonline.com/s/knowledgebank
Forth Ports is investing more than £10 million (US$12 million) to create a new quayside with a heavy-lift capability, coupled with a significant onshore operational area at the port. Southbay Civil Engineering began work under the contract in February. Work is due to be completed by the end of 2017.
To upload a whitepaper to the Knowledge Bank, please email Steve Edwards at steve.edwards@rivieramm.com
Editor’s comment: The opening up of the polar routes offers new commercial possibilities to the maritime industry at large and the oil and gas industry. In parallel with these new opportunities comes increased risk. These risks are magnified by virtue of the polar regions’ unique, diverse and remote geography and the industry’s limited operational experience.
impairment charge of €840 million in its 2016 annual results. Boskalis said the charge is almost entirely related to the services part of Boskalis’s offshore oil and gas activities, with more than €365 million related to an impairment of vessels, more than €380 million relating to goodwill and approximately €90 million to Smit Lamnalco. A large part of the impairment relates to Dockwise, the heavy-lift company that Boskalis acquired in 2013, and Dockwise vessels at the lower end of the market. The company noted that, since the acquisition, Dockwise has contributed “exceptionally well” to its results. Up to and including 2016, Dockwise generated around €900 million in cash from its activities. The impairment of goodwill and the fleet for Dockwise amount to €550 million. http://bit.ly/2mi0F2w
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VESSEL NEWS | 47
McDermott acquires Ceona Amazon McDermott International has acquired the pipelay and construction vessel Ceona Amazon “to better position the company for ultradeepwater and subsea umbilicals, risers and flowlines (SURF) projects”. “This is a great opportunity for the company to expand the technical capabilities of our global fleet and grow in the deepwater and SURF markets and greatly increase our ultra-deepwater project coverage,” said David Dickson, president and CEO of McDermott. “Due to current market conditions and the opportunistic nature of the transaction, we were able to acquire what is essentially a new, enabling asset at a fraction of the original build cost.”
McDermott plans to upgrade the vessel to address the ultra-deepwater market with a J-lay system. In the near term, the company plans to make minor capital expenditure investments to bring the vessel up to company standards. As McDermott finalises its upgrade plans, the company plans to use the vessel on existing construction and pipelay projects. Funding for the vessel acquisition has been secured through a sale and leaseback arrangement under which McDermott has control of the vessel in exchange for a daily charterhire rate. The planned upgrade with the J-lay system and related financing are expected to be considered in line with market conditions. Ceona Amazon has been acquired by McDermott, which plans to upgrade the vessel with a J-lay system
Glomar bags extension to long-term contract Glomar Offshore has secured a two-year extension for the charter of Glomar Patriot on the UKCS. Glomar Patriot is a 2013-converted Class B O&G UK (UKOOA) ERRV. Mark van der Star, chief commercial officer of
Glomar, said, “This contract marks a milestone where half of our current ERRV tonnage is committed on long-term charters for 2017 and 2018 and shows our clients’ continuous interest and trust in our services.”
Fugro plans acquisition of Rem Etive Fugro has secured its continued utilisation of the inspection, maintenance and repair (IMR) vessel Rem Etive and has finalised a purchase agreement at conditions significantly more beneficial than a renewed charter agreement with owner Solstad. The move supports a portfolio of IMR contracts being executed by Fugro in the Asia Pacific region and is expected to strengthen the company’s position in relation to future subsea
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inspection business in the area. Rem Etive has been operating in Southeast Asian waters for Fugro under a charter agreement since 2007 and is mobilised with a comprehensive range of Fugro equipment for specialised subsea inspection and field support projects. Retaining the benefits of the vessel’s assured performance and notable versatility will result in seamless project execution and provide the continuity that is essential in operational management.
Statoil places contract for quartet of ERRVs Statoil has awarded Simon Møkster Shipping contracts for three emergency response and rescue vessels (ERRVs) and has awarded Havila Shipping a contract for one ERRV. The contracts have a total value, included options, of NKr2.7 billion (US$322.6 million). The vessels will be part of Statoil’s area-wide emergency response on the Norwegian Continental Shelf (NCS). “Statoil has an extensive emergency preparedness system on the NCS, and through the contracts, we have secured four vessels that are tailored to our waters. I look forward to continuing our long-standing and good partnership with Simon Møkster Shipping and Havila Shipping,” said Philippe F Mathieu, Statoil’s senior vice president for joint operations support. The contracts will run for seven years, with five one-year extension options, and each follows on from an existing contract for the vessels. The three vessels from Simon Møkster Shipping are Stril Poseidon, Stril Merkur and Stril Herkules. Havila Shipping has been awarded a contract for Havila Troll. Stril Poseidon’s contract takes effect in July 2018 when its existing contract expires, Stril Merkur’s contract takes effect in December 2018, Stril Herkules’ contract takes effect in December 2018 and Havila Troll’s contract takes effect in November 2017. OSJ
Offshore Support Journal | April 2017
48 | IMCA NEWS
IMCA’s DP guidance makes its mark Guidance painstakingly developed by IMCA over the years is at the heart of the dynamic positioning sector and the work programme at the IMO
T
he International Marine Contractors Association’s (IMCA’s) guidance on dynamic positioning has a global reputation. This was emphasised when the IMO SubCommittee on Human Element, Training and Watchkeeping agreed in January to continue using IMCA’s Guidlines for the Training and Experience of Key DP Personnel (IMCA M 117) as the basis of the IMO Guidelines for Dynamic Positioning System (DP) Operator Training (MSC/ Circ. 738). As Richard Benzie, technical director at IMCA explained, IMO’s circular 738 has been the established international standard for DP operator training since 1996, having successfully provided the framework on which vessel operator training and competence schemes are based. “It has been working well but has been amended slightly to reflect changes in current training and operating practice,” said Mr Benzie. “Our own M 117 was recently revised, and HTW 4 agreed to revise MSC/ Circ. 738 accordingly.” A revised version of the much-used IMCA M 190 Guidance for Developing and Conducting Annual DP Trials Programmes for DP Vessels is newly published and has a new title – Guidance for Developing and Conducting DP Annual Trials Programmes. Importantly, related supplementary guidance documents have been amalgamated within the newlook M 190. The comprehensive DP
Offshore Support Journal | April 2017
Richard Benzie: “guidance developed by IMCA has been amended slightly to reflect changes in current training and operating practice”
trials regime is over a five-year cycle. It contains a wide range of specific tests, some of which are repeated on an annual basis. The programme includes annual testing of critical equipment, incremental testing conducted throughout the year, reference to the vessel’s planned maintenance system and records and a rolling programme of tests over a period of more than a year. “The revised version of M 190 details the five-year cycle of testing requirements. Indeed, the object of the exercise is to provide a helpful guide to all with a role to play in the aspects of specifying, undertaking or appreciating the outcome of the programme,” Mr Benzie explained. “Understanding at the proverbial ‘coal face’ is an imperative, and a strict management of change regime must be in place so that the trials programme reflects any changes and modifications made to the ship’s systems.” M 190 continues to deliver guidance on how to develop and conduct annual testing and trials, together with providing the standard IMCA trials report format. It sets out the benefits of performing the annual trials,
the incremental testing and for rolling tests to be completed over the five-year programme. “Our DP documentation – be it guidance, technical documents, our annual DP stationkeeping events report or DP stationkeeping event bulletins (previously issued as safety flashes) – is designed to help to keep the global DP fleet operational, safe and efficient and the men and women involved fully updated,” said Mr Benzie. “A recent DP stationkeeping event bulletin, for example, anonymously presented the DP event trees from recent reports on five cases: ‘Non-routine lift leads to thruster incapacity’; ‘Pipelaying equipment short circuit causes thrusters to trip’; ‘Alteration of course with centre of rotation (COR) offset causes loss of power’; ‘DP trial leads to partial blackout’; and ‘Procedures for ploughing using DP discussed’,” he explained. The DP event originators granted IMCA permission for the event trees to be analysed and commented on by the IMCA DP Focused Workgroup and then to be circulated to all relevant members – thereby enabling their DP crews to learn from the experience of others. OSJ
“The revised version of M 190 details the five-year cycle of testing requirements. Indeed, the object of the exercise is to provide a helpful guide to all with a role to play in the aspects of specifying, undertaking or appreciating the outcome of the programme”
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SAFETY FLASHES | 51
MAN OVERBOARD LEADS TO FATALITY The International Marine Contractors Association (IMCA) regularly publishes safety flashes summarising safety matters and incidents, allowing wider dissemination of lessons learned from them, a recent example of which is reproduced here
MAN OVERBOARD FATALITY – FAILURE TO FOLLOW SAFETY PROCEDURES
The US Coast Guard has published a safety alert (number 01-17) relating to a man overboard fatality. Whilst a vessel was at anchor off the coast, a crew member who could not swim was working over the side in a ‘bosun’s chair’ to paint the vessel’s midship draught marks and load lines. Unfortunately, when his shipmates on deck started to haul him back up, the bosun’s chair rope parted, and he fell into the water. He survived the fall and attempted to swim towards a life ring that had been thrown to him, but he ultimately submerged and was lost. Other crew members attempted to launch a rescue craft, but it failed to operate. This terrible incident is an example of where following safety management system procedures could have prevented a death or injury. Investigators found that the captain and chief mate had met and developed a suitable work plan. This plan was later communicated to the crew involved. The plan had several important elements, including inspecting the bosun’s chair and manila rope rigging and requiring that the crew member going over the rail wear a personal flotation device (PFD) and use a safety harness and lifeline. However, the plan was not implemented. Crew members failed to adequately check the strength of the rope, instead simply pulling on it. The deceased was not wearing a PFD, and even though he wore a safety harness along with a lifeline, the lifeline went untended and was not tied off to the vessel. The vessel’s bosun was not present, and it remains unknown who was supervising the operation. Months before the tragedy, the chief mate had placed a requisition request for new manila rope and for PFD work vests that were designed to be worn with the vessel’s safety harness. However, the request went unfilled. As a result of the casualty, the US Coast Guard strongly reminded vessel owners and/or operators and all personnel
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onboard vessels everywhere to do the following: use safety equipment; ensure adequate supervision of work teams; develop workplace mindsets that properly develop and execute plans, including those for worst-case scenarios; implement barriers to prevent such scenarios; fully implement and adhere to safety management system requirements. Readers may wish to refer to the following incident (search words: over board): • IMCA SF 10-15 – Incident 5 – Daughter craft man overboard incident • the main conclusion drawn was that the boatman did not secure his safety harness to the harness point and did not convey this to the deck crew. Also, the deck crew lowered the davit wire without confirmation that the boatman was secure. Causes: failure of communication, failure to be aware of safety responsibilities, failure to use personal protective equipment appropriately. OSJ These safety flashes summarise key safety matters and incidents, allowing wider dissemination of lessons learned from them. The information has been provided in good faith by members and should be reviewed individually by recipients, who will determine its relevance to their own operations. The effectiveness of the IMCA safety flash system depends on receiving reports from members in order to pass on information and avoid repeat incidents. Please consider adding the IMCA secretariat (imca@imca-int.com) to your internal distribution list for safety alerts and/or manually submitting information on specific incidents you consider may be relevant. All information will be anonymised or sanitised, as appropriate. A number of other organisations issue safety flashes and similar documents that may be of interest to IMCA members. Where these are particularly relevant, these may be summarised or highlighted. Links to known relevant websites are provided at www.imca-int.com/links
Offshore Support Journal | April 2017
52 | MARKET DATA
Statistics & trends Compiled using data and graphs provided by Seabrokers’ monthly market report Seabreeze
NORTH SEA DEPARTURES AND ARRIVALS
NORTH SEA AVERAGE RATES: FEBRUARY 2017
DEPARTURES: Vessels that have recently left or are due to leave the North Sea spot market
CATEGORY
AVERAGE RATE FEB 2017
AVERAGE RATE FEB 2016
% CHANGE
Skandi Sotra
supply duties PSVs <900m2
£8,428
£4,286
97%
supply duties PSVs >900m2
£6,777
£4,659
45%
supply duties AHTS <18,000 bhp
£7,833
£30,615
-74%
supply duties AHTS >18,000 bhp
£15,789
£26,746
-41%
Mediterranean
NORTH SEA AVERAGE RATES: FEBRUARY 2017
NORTH SEA SPOT AVERAGE UTILISATION: FEBRUARY 2017 MONTH
MED LARGE PSV PSV
MED AHTS
LARGE AHTS
Feb 2017
78%
82%
30%
53%
Jan 2017
73%
77%
22%
59%
Dec 2016
62%
85%
28%
31%
Nov 2016
58%
86%
34%
50%
Oct 2016
66%
76%
42%
50%
Sept 2016
60%
76%
51%
65%
CATEGORY
MINIMUM
MAXIMUM
supply duties PSVs <900m2
£3,900
£20,000
supply duties PSVs >900m2
£3,500
£12,980
supply duties AHTS <18,000 bhp
£6,500
£9,000
supply duties AHTS >18,000 bhp
£7,000
£43,269
OSVs RECENTLY DELIVERED VESSEL Gennadiy Nevelskoy
DESIGN
OWNER/MANAGER
COMMITMENT
Icebreaking PSV
Sovcomflot
Russia
93M PSV
Edison Chouest Offshore
South America
Potter Tide
LDS 300 DE PSV
Tidewater
TBC
Starnav Hydra
GPA 688 SC PSV
Starnav Servicos Maritimos LTDA
South America
Mr Aldo
Offshore Support Journal | April 2017
www.osjonline.com
MARKET DATA | 53
DAILY AVAILABILITY: FEBRUARY 2017 PSV 2017
PSV 2016
AHTS 2017
AHTS 2016
LEFT: demand for anchor handlers has generally been low although from time to time it has peaked
30
BELOW LEFT: The oil price remained in the US$50/barrel price range through February and into March2017
28 26 24 22 20 18 16 14 12 10 8 6 4 2 0
1
2
3
5
4
6
7 8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
OIL PRICE VERSUS RIG UTILISATION $60
100%
$55
90% 83.1%
82.3% 78.6%
80%
77.1%
75.1%
72.9% 69.2%
70%
68.2%
68.0%
66.3%
77.6% 74.3%
64.6%
78.4%
74.8% $46.14
$46.19
$49.73
76.8%
76.0%
$46.44
$54.07
74.4%
$54.89
75.6%
$50
$56.00
$45
$42.25
60%
$47.13
$39.07
$48.48
$45.07
$40
60.5% 57.4%
57.7%
50%
55.0% 51.6%
52.3%
53.3%
33.5%
33.3%
33.2%
$35
$33.20
40% 38.9%
38.8%
39.5%
35.4% 37.8%
36.8%
35.1%
35.2%
35.1%
$30
36.0%
30% Feb 16 Mar 16 Apr 16 May 16 Jun 16
$25
Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17
average Brent Crude US$/Bbl
Northwest Europe rig utilisation
South America rig utilisation
US Gulf rig utilisation
NORTH SEA AVERAGE ANNUAL DAY RATES £ 30,000
2016 2017
25,000
£28,522
£24,741
20,000 15,000
£16,059
10,000 5,000 0
£11,977 £7,143
£6,292
£5,047
£4,752
PSVs <900m2
PSVs >900m2
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AHTS <18,000 bhp
AHTS >18,000 bhp
Offshore Support Journal | April 2017
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MARKET DATA | 55
Offshore vessel values
February 2017 The table on page 56 shows the monthly percentage change in value for offshore support vessels, by year of build, through 28 February 2017. Values remained relatively stable this month due to limited second hand S&P activity
PSVs
Platform supply vessel (PSV) values softened slightly due to continuously worsening market conditions. Skandi Waveney (3,200 dwt, November 2001, Vard Brevik) was sold by DOF ASA to a buyer outside of the offshore industry. Delivery of the vessel is due to take place once it completed its current contract.
AHTS
Anchor handler values firmed slightly with the auction sale of Swiber Valiant (5,000 bhp, September 2007, Nanindah Mutiara) for US$3.0 million (VV day before sale US$2.45 million). The anchor handling tugs Elbe and Ems (7,180 bhp, April 2006, Zamakona Shipyard) were sold to an undisclosed buyer. Values for larger AHTS remained depressed. Source: VesselsValue.com
TOTAL VALUE OF 2ND HAND SALES IN FEBRUARY 2017 VS 2016
TOTAL NUMBER OF 2ND HAND SALES TAKEN PLACE IN FEBRUARY 2017 VS 2016
S&P US$
S&P No
2017
2017 2016
US$235
US$357 US$104 US$106
Gas
Tanker Container
US$831
2016
OSV
Gas
US$0 US$334
OSV
US$3 US$22
31
Bulker Tanker Container
Bulker
US$328
0
35 21 18 12 10 0 3 4 4
5
10
15
20
25
30
35
40
No. Vessels 0
200
400
600
800
1,000
Value (US$ millions)
• Total activity by transaction value is up by 20% in February 2017 compared to February 2016 • Bulker prices have increased by 40% for February 2017 • Tanker transaction values have increased by 132% for February 2017 compared to February 2016 • There have been no disclosed prices for Gas sales in February 2017.
www.osjonline.com
• Total sales by number count are down by 3% for February 2017 comapred to February 2016 • Bulker sales by number are down by 11% compared to value of sales which is up for February 2017 • Both Tanker and Container sales are higher for February 2017 compared to February 2016 • There have been 4 OSV sales this month however only 1 sale price has been disclosed.
Offshore Support Journal | April 2017
56 | MARKET DATA
OFFSHORE VALUES: FEBRUARY 2017 BUILT
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
LARGE PSV
MEDIUM PSV
SMALL PSV
SUPER AHTS
MEDIUM AHTS
SMALL AHTS
1.7%
-1.0%
-3.6%
-1.3%
0.5%
0.3%
5.2k
3.6k
1.7k
24k
8.2k
5.5k
1.6%
-1.0%
-3.7%
-1.4%
0.3%
0.9%
5.2k
3.6k
1.7k
24k
8k
5.2k
1.5%
-1.1%
-3.7%
-1.4%
0.3%
0.8%
5.2k
3.6k
1.7k
24k
8k
5.2k
1.4%
-1.6%
-3.8%
-1.4%
0.8%
1.1%
5.2k
3.4k
1.7k
24k
8k
5.2k
1.0%
-1.9%
-4.1%
-1.4%
1.5%
1.1%
5.1k
3.3k
1.7k
24k
8k
5.2k
0.2%
-2.2%
-4.2%
-1.4%
2.9%
2.3%
4.8k
3.3k
1.6k
24k
8k
5.2k
0.0%
-2.4%
-4.7%
-1.4%
3.4%
3.0%
4.8k
3.3k
1.6k
24k
8k
5.2k
-0.3%
-2.7%
-5.2%
-1.4%
4.5%
5.4%
4.8k
3.3k
1.6k
24k
8k
5.1k
-0.6%
-3.0%
-5.2%
-1.4%
5.7%
6.9%
4.8k
3.3k
1.6k
24k
8k
5.1k
-1.0%
-3.4%
-5.5%
-1.4%
5.4%
7.7%
4.8k
3.3k
1.6k
24k
8k
5.1k
-1.3%
-3.7%
-6.1%
-1.3%
5.8%
8.5%
4.8k
3.3k
1.6k
24k
8k
5.1k
-1.7%
-3.9%
-6.2%
-1.2%
6.0%
8.8%
4.8k
3.3k
1.6k
24k
8k
5.1k
-1.9%
-4.3%
-6.6%
-1.1%
6.8%
9.0%
4.8k
3.3k
1.6k
24k
8k
5k
-2.3%
-4.6%
-6.5%
-1.0%
7.5%
9.1%
4.8k
3.3k
1.6k
24k
8k
5k
-2.7%
-5.0%
-6.9%
-0.8%
8.3%
9.6%
4.8k
3.3k
1.6k
24k
8k
5k
-3.1%
-5.2%
-7.2%
-0.5%
8.6%
9.7%
4.7k
3.3k
1.6k
24k
8k
5k
This table shows the monthly percentage change in value from 1st to the 28th February 2017 for OSV vessels. by year of build.
Offshore Support Journal | April 2017
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