The Full Picture Magazine 01/10 by SAY: PR & Communications AS

For users of Kongsberg Products and services

01/10

The

FULL PICTURE magazine

THEME New Directions Teekay Offshore Tag Team Transocean Sedco Rig Refits NORSKAN Brazilian Roots

BW Offshore Business As It Is Seadrill Homegrown Success Swedish Coast Guard

“Let’s put it this way – we definitely have the capability to stretch what’s possible.” – BW Offshore CEO Carl K. Arnet on being an industry front-runner

Engines THEME Intelligent New directions

THE FULL PICTURE MAGAZINE

01/10

Contents Customer feature

Back o he way bus ness s

BRAZ L features

Kongsberg n B az an

BW O sho e B az Hea o he ma e

11 Teekay O sho e Tag eam 14 Es a e o A an co Su The c zen company 16 No Skan O sho e B az an oo s 20 Bo a p a en e Lea n ng o d eam 22 Sead 28 MOVES & UPGRADES

Homeg own success

Sevan Ma ne The hand-p cked g

32 Squeez ng h ough he Bospho us

36 Ma ne Ma ekn k Upg ad ng F ank n 40 No he n S a A en on o de a 43 T ansocean Sedco gs a b ank s a e 46 Swed sh Coas Gua d The Coas Gua d KONGSBERG NEWS 48

B eak ng g ound

K-Mas e

New Company n Duba

Expans on o Cus ome Suppo

New T a n ng Cen e n S ngapo e

n eg a ed Rea y

56 Ka anba A chance o d eam

Th u P u u o KONG o omp m p on m u p u Th u P u n pd o m

M g n m g n o G p odu nd n op o h m g n Kong b g M m A d o @ ong b g om M g n o b www m ong b g om

ED TOR AL STAFF

PR NT NG

Gun o H ng M d bø Kong b g M m V P d n Commun on Gun o h ng m d bo@ ong b g om Ed o n h

Co o M

CONTR BUTORS

ADDRESS

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MANAG NG ED TORS ED TOR AL PRODUCT ON & GRAPH C DES GN AY PR & Commun

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Over the years Kongsberg s g ow h has been based on he ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. use u and e ab e echno ogy so u ons ha we deve op o mee he ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. equ emen s o he ndus y Th s has on y been poss b e h ough ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. c ose co-ope a on and pa ne sh p w h ou cus ome s W h ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. echn ca co-ope a on and s ong bus ness pa ne sh ps we have ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. been ab e o o ge new d ec ons – new so u ons o new ma ke s ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. and new app ca ons ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. The same d ve o b eak new g ound s c ea y ev den n ou ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. cus ome s Sead s a b az ng app oach o manpowe n B az ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. eflec s h s and Edua do An one o D ec o o he company s ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. B az an ope a ons o d Fu P c u e ha he s p oud ha a Sead ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. gs n B az a e ma o y manned by B az ans whe eas o he fi ms ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ope a ng he e may have up o 95% o e gn s a onboa d he gs ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. L kew se Teekay he wo d s a ges p ov de o shu e anke ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. se v ces o ged a new d ec on n B az ay ng ou a s a egy n 1999 ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. on how o nfluence he ma ke and open he doo o DP shu e ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. anke ope a ons And om 2002 o 2007 he company supp ed ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. Pe obas w h 11 sh ps They a e now espons b e o h ee qua e s ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. o Pe obas shu e anke flee ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. We cou d desc be B az as a new d ec on o Kongsberg bu n ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. u h we ve been ac ve n he coun y o ove a decade Bu B az ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. s evo v ng ap d y The coun y s once amous sh pbu d ng sec o s ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. on he se once aga n and he day ha he fi s B az an FPSO o ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. sem -subme s b e g h s he wa e s no a o We know because ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. we a ked o Es a e o A an co Su he sh pya d ha may be he fi s ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. o make h s happen ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. O cou se echno ogy akes us n new d ec ons oo When we ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. a ked o Ca K A ne CEO o BW O sho e he was keen o s ess ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ha hey don go a e echn ca nnova on o push he bounda es ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. us o he sake o hough Take o ns ance he moo ng sys ems ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ha hey deve oped o he BW P onee he nnova ons we e on y 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............................................................................................................................................................................................. ou o need because s o he deepes o deve opmen n he ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. wo d ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. 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A Kongsberg we a e ded ca ed o he e hos o manag ng he ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. down u n wh s p epa ng o he up u n Many sh powne s sha e h s ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ou ook and ns ead o o de ng new vesse s dec ded o ake he efi ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ou e n he yea o ow ng he c ed c unch We a k o a numbe o ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ............................................................................................................................................................................................. ........................................................................................................

Heading in new directions

sh powne s n h s ssue o he Fu P c u e who a e manag ng he way h ough he econom c c ma e wh s keep ng a fi m eye on he oppo un es ha a e su e o come We hope ha you sha e ou en hus asm and d ve o new d ec ons L ke ou cus ome s we a e a ways ook ng a h ngs n new ways o wo k ng ou how we can be e se ve ou cus ome s w h sys ems echno ogy and suppo ha he ps o s eng hen he own new d ec ons Wh ch means ha he e s neve a bo ng day a wo k

Gunvor Hat ng M dtbø Kong be g M

V e P e den – Commun

THEME New directions

Article by The Full Picture Magazine :: Photos by Johs BĂ¸e.

Back to the way business is It could be said that BW Offshore CEO Carl K. Arnet had bad luck when taking over the reins of the FPSO company at the height of the global financial crisis in September 2008. But thatâ&#x20AC;&#x2122;s not how he sees it. In fact, Arnet believes that regular business conditions help rid the industry of less serious players and rewards companies like BW Offshore that have their houses in order.

Carl K. Arnet, CEO, BW Offshore

The FULL PICTURE magazine 01/10

:: Arnet began his career at Norsk Hydro, and stayed there for a full sixteen years. After starting off working offshore on the startup of various platforms and projects and making his way up to Offshore Installation Manager, he branched out and moved over to international business development. In the end, however, he developed such a taste for business that he decided to carry it out outside of Hydro. “At Hydro one was really only responsible for one side of the equation – the expense side – and never the profits,” Arnet says. He got the chance to weigh in on both sides of the equation, however, when he joined offshore loading and transfer system supplier APL (Advanced Production and Loading) as Managing Director in 1996. During his time at the helm, APL evolved from a small Arendal, Norway startup to become the leader in turret and mooring technology, with a significant number of ‘world records’ in terms of water depth (both deep and shallow), weather capacity and pressure containment, among

chance of increasing its market share. In fact, 2009 and 2010 so far have been quite fruitful years for the firm – particularly due to the company’s vessels extremely strong operational performance (an uptime of 99.7 percent in 2009) and its multitude of projects in the Gulf of Mexico. One of the highlights here is the BW Cidade de São Vicente FPSO at the giant Tupi oil field off the coast of Brazil. BW offshore had a modified vessel on the field to commence FPSO operations within 335 days from Petrobas awarding the contract – one of the quickest turn-arounds on record. Other projects here include a FPSO conversion for Petrobras and Chevron in the Papa Terra venture in the Campos Basin offshore Brazil, and the BW Pioneer FPSO for the Cascade & Chinook project for Petrobras – the first FPSO in the US portion of the Gulf of Mexico. In addition to these and other contracts of note, a Letter of Intent for the BW Carmen FPSO in the UK sector of the North Sea, the impending secondary listing of the company on

saying that there was no end to the number of FPSOs needed. If you took the plans of all the FPSO players and added them up, you could walk from Oslo to the United States – easily. It was just the times. “I came in when all of this crashed to Earth. Then things went back to the way that business really is. Business is tough – we have very demanding clients with large and complicated projects. Putting projects together is not supposed to be an industrial happening – it should be a controlled process. And this is where we excel. “I actually think that we’re in a good period now – what we’re doing now is a much more sensible business. One by-product of the toneddown market could very well be that a number of the less-serious FPSO players disappear. They will have big problems getting financing – not to mention the trust of their respective clients. Many of them have failed to deliver on time and served up large budget overruns. It serves nobody, really.”

others. BW Offshore purchased APL in 2007, and Arnet served as Deputy CEO at BW Offshore before taking over the top position in a planned transition the year after. This took place not only at the height of the global financial crisis, but also at the start of a period (August 2008 – August 2009) that marked the first time since the FPSO market began that the industry had gone through an entire year without a single contract award. While not all FPSO companies will necessarily show this development on their bottom lines now – given that contracts are set in place years in advance – in general the slowdown has had benefits for the well-established FPSO players. Some new entrants into the field have disappeared from this competitive area. This gives BW Offshore – which has delivered oil FPSOs primarily based on VLCC hulls since 1997 – a great

the Singapore Exchange, and other opportunities being pursued in the Asia South Pacific and West Africa mean that BW Offshore is bullish about continued success. The Full Picture recently sat down with Arnet in BW Offshore’s Oslo offices for a one-hour interview, with the conversation running the gamut from the current state of the FPSO sector and the company’s success in a difficult climate to the subsupplier market, future prospects in the Gulf of Mexico and beyond…

On BW Offshore’s improved financials in 2009 and so far in 2010

On the financial crisis, Arnet’s ascent to the head of BW Offshore during the crisis, and the FPSO industry clearout “The focus from 2005–2007 was on growth, and growth at all costs. Everything was peaking at the same time, and everybody was doing the same thing. It was a tremendous period – people were

“We’re not affected by short-term market swings, as our projects are very long term. Some of the improvement was in the cards – because we had taken on projects, completed and delivered them, and then started to receive revenue – but where we’ve really made advances is in achieving better control over the operating costs, and more predictability. These areas tend to be pushed in the background during boom times – people are so busy acquiring new work that they forget about ‘mundane’ areas like operations.”

On being an industry front-runner “Let’s put it this way – we definitely have the capability to stretch what’s possible. The mooring system that we’ve put into place for the BW Pioneer – the deepest oil development in the world 3

THEME New directions

– shows that we have the technical capabilities. But we’re not going after technical innovation or pushing boundaries just to do it. We’re very commercially driven, and are most concerned with profits on our operations and having a sound basis for future growth. We do, however, see that these things go hand in hand. If you have the technical capabiliities, then you place yourself in a less competitive category. You’re making your own market, so to speak.”

the project in 11 months – so we’re very pleased with the perfomance of the subsuppliers here. Kongsberg Maritime and their control package played a vital role in this process. “If there’s one area where Norway is contributing to the world at large, it’s in the country’s experience in the area of maritime, offshore and oil and gas, and its ability to combine these competencies. This is the strength that Norwegian subsuppliers should continue to emphasise.”

On technology ownership vs. supplier purchases from the market

On the proposed secondary stock listing in Singapore

“We’re not interested in technology ownership in a general sense – we’re quite happy to purchase it from the market. Take pumps , for example. There’s reasonable competition here, so we don’t need to own a pump company to get a good deal.

“We’re the first FPSO company going for a dual listing in Singapore and Oslo, and things are more or less progressing according to plan, but are just taking a bit longer than we had initially thought. The due dilligence carried out in Singapore is rather complex, and since we operate in so many jurisdictions and have permanent setups with tax responsibilities – from the US and Brazil to Nigeria, Mauritania and beyond –then due dilligence means that all of these locations need to be checked. But we should be in place here over the course of the autumn.

“Putting projects together is not supposed to be an industrial happening – it should be a controlled process. And this is where we excel.” Carl K. Arnet, CEO, BW Offshore

On meeting local content requirements for operations in Brazil

“However, if competition is severely restricted to the point where there is no competition, or the technology in question is a very particular part of our product – like loading, offloading, or a mooring system – then it’s different. It’s a very particular type of technology, and there are very few companies in the world with a track record here. We would only be able to buy it from our competitors – and that’s not comfortable. So that’s why we own APL.”

“While there isn’t a fixed set of rules, Petrobras has high expectations regarding local content for the operation of its offshore Brazil projects. BW Offshore has reached a level of 80% local employees in our projects there, something that we’re very proud of. “It is a challenge regarding the calibre of employees and getting them in place in time, but we were very happy to meet the targets. Most of our training takes place on the job – we come in mainly with an international crew, and then we train people there and replace our international staff over the course of the year. We’ve done this without any problems regarding health and safety. We’re also providing financial support to local cadet programmes in Brazil in order to have a greater number of competent personnel there in a couple of years, which there will be a demand for.”

On BW Offshore’s relationship with subsuppliers “We run a big supply chain for all of our projects – they’re quite complicated, integrated projects. We typically have two to three professional companies in on our projects. We haven’t standardised on one specific control system for example – we actually buy from the market. You could always question whether that’s a smart strategy or not. But BW Offshore is very commercially driven, and we are totally dependent on there being a number of good suppliers out there.”

On Kongsberg Maritime and Norwegian subsuppliers in general “The BW Cidade de São Vicente FPSO required an extremely quick turnaround – we executed 4

On the fallout from the Deepwater Horizon incident in the Gulf of Mexico “While it’s too early at this time to say if what happened there is due to complancy or technical issues, the incident may significantly impact offshore developments in the region, and will definitely increase the price of these. “The pre-salt area in Brazil is the same type of formation as in the Gulf of Mexico’s US waters,

BW Offshore • One of the world’s leading floating production, storage and offloading (FPSO) contractors and a market leader within advanced offshore loading and production systems to the oil and gas industry • The company has over 25 years of experience in the industry, and has successfully delivered 15 FPSO projects and 50 turrets and offshore terminals • Listed on the Oslo Stock Exchange and likely listed on the Singapore Stock Exchange over the course of 2010 • Employs approximately 1100 people in business centres across Europe, the Asia Pacific, West Africa and the Americas • 2009 operating income of USD 121.4 million • A part of the BW Group, one of the world’s largest maritime groups

technology highlights BW Offshore’s fully owned technology division, Advanced Production and Loading (APL), delivers cutting-edge turnkey solutions for: • Production vessels, storage vessels and tankers in a wide range of field developments • The company’s BW Pioneer, which is in operation for Petrobras and represents the first FPSO in the US section of the Gulf of Mexico, is the deepest application for a APL Submerged Turret Production (STP) buoy to date. It features a turret and mooring system at a water depth of 2600 metres • Through a fast-track conversion project, BW Offshore delivered the first FPSO – the BW Cidade de São Vicente – to the Tupi field, one of the largest in Brazil, to Petrobras • The FPSO Yùum K’ak’ Nàab, currently in operation for PEMEX in the KMZ field in the Mexican Gulf of Mexico, is the largest FPSO to date. The vessel has a throughput of up to 600,000 barrels of oil per day.

The FULL PICTURE magazine 01/10

and I don’t even think that Mexico has started drilling similar structures. Future developments will definitely be coming from these deepwater oil areas. There’s no doubt that the Gulf of Mexico contains huge quantities of oil – the question is how economical it is to develop it. This is always the conundrum that you have to solve – you have to include the investment, development and production costs relative to the price of oil at the expected recovery to see if you have a commercial project. “The positive thing you can say about the incident in the Gulf is that it will hopefully help bring about an enhanced focus on safety.”

On BW Offshore’s strategic take on the FPSO market

this is a very suitable route for a lot of business cases that we see – but this doesn’t mean that we wouldn’t do a newbuild. So far they just haven’t made sense. Take the Cidade de São Vicente vessel, for example – there’s no way that a newbuild would have worked with the time involved. We had a competitive advantage over our competition because we had access to a conversion unit. “While we’re set up to own and operate FPSOs and gain our revenue through lease rates, we’re not averse to EPC contracts. In fact, we’re doing one right now for the Papa Terra project. We’re open to different business models. Right now, being paid on progress is possibly preferable to having to finance projects and be paid over time – not only is it good for the activity level, but it’s less demanding on our financial capabilities.”

On BW Offshore’s continued success “When you are executing large projects like we do and take on long contracts handling large quantities of flammable and polluting substances, you have to put together a company with a very clear business strategy, very clear objectives and a systematic approach. There’s no way you will succeed in production without a very systematic health and safety approach that minimises and mitigates risk. You also have to be careful to find the right mix of short-term and long-term costs for all of your technical solutions. Developing the supply chain – so that you have the right partners and players in order to obtain your project objectives on time and at cost – is extremely important.” ::

“We have typically done vessel conversions, as 5

THEME New directions

Article by The Full Picture Magazine :: Photos by Tommy Normann

Kongsberg in Brazilian With ongoing investment in Brazil, Kongsberg Maritime seeks to anchor its solid position as a provider of mission-critical components to the countryâ&#x20AC;&#x2122;s ship and rig owners.

:: Kongsberg established its Brazilian daughter company on 1 December 2009 for two reasons: 1) Ships and rigs with dynamic positioning and/or integrated control systems from Kongsberg have jumped from 100 to 250 over five years, and 2) Brazilian authorities and nationalized companies express a preference for suppliers that invest in the country, as rules stipulate a fixed minimum of Brazil-based supply. Kongsberg has been present in Brazil through a sales and service representative, REM Industrias, since the late eighties. This year, the company aims to combine this Macae-based training location with its service, sales and administration office in Rio.

The FULL PICTURE magazine 01/10

The market

Who Tony Håvelsrud is managing director of Kongsberg Maritime do Brasil S.A., after spending over five years in the country as sales manager and general manager. He is accompanied by a staff of 35 employees, many of whom have extensive experience servicing Kongsberg-equipped ships in Brazil. The company recently hired around a half-dozen new engineers. “Everyone in Brazil struggles to find skilled employees. We’re fortunate; the Kongsberg brand is so strong that we’ve always had a steady stream of qualified applicants,” says Håvelsrud.

Of the 250 or so ships and rigs equipped with Kongsberg components in Brazil, roughly onethird are owned by Brazilian companies. This ratio is set to grow, as Petrobras and Transpetro’s ambitious newbuilding programmes increase the number of Kongsberg-equipped units to somewhere between three and four hundred. “Our challenge will be to maintain or increase our strong market share in this market. Competition is toughest at the lower end of DP and ICS; on the high end of advanced DP and ICS, we have a very strong position and reputation,” says Håvelsrud.

Business challenges The relationships between Kongsberg Maritime in Brazil and in Norway, and with Brazilian customers, requires constant care. Even if Kongsberg Maritime is able to sell its products directly in Brazil, contracts are still signed with Kongsberg Maritime in Norway. “It is far cheaper for customers to import the components, than for us to import them and resell them. Domestic owners here have exceptions

under the tax law to import what they need,” says Håvelsrud. Nonetheless, Håvelsrud states that the Brazilian company will establish a spare parts inventory in Brazil. The added speed of replacements will, in some cases, make up for added costs. Obtaining visas for foreign specialists to come and work in Brazil continues to be a timeconsuming affair. With an increased contingent of local talent, however, Kongsberg will hopefully be able to meet more and more needs with skilled Brazilians.

Adding value Local presence increases the speed and quality of service, but Kongsberg is working to add even greater value for its customers. Two areas stand out: Training and continuing education. The manning challenge in Brazil is, if anything, even worse for DP operators. Kongsberg Maritime has stepped up DP training, owning one of the few training centres approved by the Nautical Institute. Secondly, Kongsberg Maritime has been working tightly with shuttle tanker owners and operators (Petrobras, Transpetro, Teekay and Knutsen OAS) to make their operations steadily more efficient.

Conclusion “We feel excited and privileged to participate in what’s happening here in Brazil. The market is booming and we’re eager to participate in that growth,” says Håvelsrud.::

THEME New directions

Article by The Full Picture Magazine :: Photos by Tommy Normann, BW Offshore, Petrobras

The Heart of the Matter BW Offshore entered the Brazilian offshore oil production market in 2008; only two years later the company is an established player stepping up its local recruitment and building relationships across the region.

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::.“If you had failed, we would have failed. The heart of an FPSO is the control system, and BW Cidade de Sao Vicente’s control system is from Kongsberg. Stakes were high, and it’s been a success. The FPSO’s up-time is close to 100 percent,” says BW Offshore’s director in Brazil, Jon Harald Kilde.

Picture BW Cidade de São Vicente with courtesy of Petrobras

The Full Picture magazine met Kilde at the company’s Rio de Janeiro office (one of three in Brazil, along with operational offices in Santos and Macae). He has led BW Offshore’s efforts in Brazil since it opened an office there in 2008, only one month before the company won the initial contract with Petrobras for the FPSO ‘BW Cidade de Sao Vicente’ (BW CdSV). The contract itself was of a modest size, but its significance wasn’t. Following the discovery of the huge oil deposits in Brazil’s pre-salt Tupi field, Brazil’s national oil company Petrobras had promised the Brazilian government to begin producing the oil within one year. Given the typical three to ten-year lead-time needed to engineer, build and start-up production units, this was no modest promise. “We had an FPSO available that needed some modifications to suit life as a pre-production and testing FPSO at the deepwater Tupi field. We were able to deliver it in 11 months and it was pivotal in allowing Petrobras to live up to its promise,” says Kilde. You can’t buy the kind of goodwill BW Offshore earned from this delivery. Early in 2010, BW Offshore together with its Brazilian partner QUIP won its second FPSO contract with Petrobras and partner Chevron for their Papa Terra field production. The company has signed contracts for adapting the first FPSO (OSX-1) of Brazil’s hardcharging independent player OGX, to its first oilfield Waimea. The prodigious start with BW CdSV may have long-term repercussions for the company, as Brazil’s deepwater fields and low level of pipeline infrastructure mean more than 40 new FPSOs will join the 25 already operating there over the next decades. Along with Petrobras and OGX, 9

THEME New directions

“Stakes were high, and it’s been a success. The FPSO’s up-time is close to 100 percent.” Jan Harald Kilde, BW Offshore’s director in Brazil

international oil companies like Anadarko, Shell and ExxonMobil are investing heavily in parcels of Brazil’s offshore fields. OGX’s official plans include 19 FPSOs to develop their 22 oil fields/blocks.

Nationalised challenges For BW Offshore, the biggest risks to its Brazilian endeavour are political and organizational. While Kilde lauds the Brazilian oil regulators as professional and easy to work with, the potential for changes at the top and the uncertainty that goes with it creates some concern. “Brazil has established stringent requirements for local production. At the same time, it has laid an ambitious path for ramping up oil production.

This leads to some interesting paradoxes; Petrobras convinced the national government in one instance to allow them to look abroad for conversion projects because domestic sourcing would not have met the required delivery times,” says Kilde. Current rules require “65 percent” of offshore deliveries to come from Brazil, but this ratio is subject to some imaginative mathematics. In reality, most projects’ Brazilian content is in the 35 percent range - a figure Brazil’s government is trying to push up to at least 50 percent. With BW Offshore’s big plans in Brazil, this means it must put a greater focus on recruiting and sourcing inside the country.

“We’ve had to reach out to schools in order to ensure we get a supply of skilled Brazilians that matches our plans here. We have an obligation to ensure that at least 80 percent of BW CdSV’s personnel are Brazilian. We work with universities, technical schools and Brazil’s merchant marine training institution (CIAGA),” says Kilde. Along with people, BW Offshore will need to secure a good supply of equipment from inside the country. This brings us back to the comments about Kongsberg. “The advice I would give to Kongsberg is to continue investing in its strong local presence. Relationships and continuity are valued very highly in this market,” says Kilde. ::

Article by The Full Picture Magazine :: Photos by Tommy Normann

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Tag Team with Teekay The world’s largest provider of shuttle tanker services, Teekay, and Kongsberg Maritime team up to provide a unique level of access to DP expertise in Brazil. We talked to Teekay’s director in Brazil about the peculiarities and possibilities of their operations there.

:: Few of Teekay’s international competitors in the FPSO and shuttle tanker business have a longer history in Brazil. The company’s name is practically synonymous with the introduction of DP shuttle tankers in the country’s offshore oil transport chain. Today, 12 of the 16 shuttle tankers operating off Brazil are Teekay owned, and they hope to grab a large percent of the 15 or so new shuttle tanker tenders coming in the next ten years. The Full Picture met Alex Tischendorf, the director of Teekay’s shuttle tanker operation in Brazil (called Teekay do Brasil Servicos Maritimos Ltda), at their offices in Rio de Janeiro. He sees his company growing into its role as a Brazilian shipowning company, and expanding its involvement in the local economy. Here is a selection of Tischendorf’s comments on the Brazilian market, on the shuttle tanker

business there, on Petrobras, on Kongsberg Maritime and on the challenges of Teekay’s operations in Brazil. When and how did Teekay get its start in Brazil? “We started here in Brazil as part of Ugland Nordic Shipping, prior to Teekay’s acquisition of that company. In 1999, we began to see the possibilities that were appearing here in Brazil, possibilities for DP shuttle tankers. Brazilian oil and gas production was increasing; they were going further and further offshore, into deeper waters with rougher environmental conditions. When we met Petrobras that first time, they received us with little interest. They basically said no. It took us about two years to turn that around. In the second half of 2001, we started negotiations with Petrobras for charter of the first DP shuttle

tanker. During those first two years, we did a lot of lobbying activity to educate them about the value of the service we can provide. We started by demonstrating to the exploration and production people at Petrobras (who are responsible for the oil coming to shore) the benefits of using DP shuttle tankers compared to how they had been doing it with conventional tankers.” Did you introduce DP shuttle tankers to Brazil? “Not entirely. Petrobras would eventually go to DP shuttle tankers anyway, but they had a large fleet of conventional tankers in Transpetro (Petrobras shipping company subsidiary). Once they started using the shuttle tankers, those vessels would quickly become obsolete. So there was a necessary process and acclimatization to go through. 11

THEME New directions

“Today, there’s no question of using anything else. In fact, today they ask for station-keeping capabilities in excess of what they ask for in the North Sea. The strategy we laid out in 1999, on how to influence the market here and open the door to DP shuttle tanker operations, worked. And from 2002 to 2007, we supplied Petrobras with 11 ships. Today we have 12 vessels out of the 16 DP shuttle tankers operating for Petrobras.” Do you run your Brazilian operations from Brazil? “We initially started up operating the vessels from Norway. In 2003, we hired a Brazilian to assist locally with the operation and facilitate spare parts, etc. Then as we started recruiting Brazilians as crew, we also recruited more people in the office. In 2009 we moved the whole management of our Brazil vessel operation from Norway to Brazil. So now we have a small efficient organization in Brazil and manage the ships technically and crew them from here in Rio de Janeiro.” Do you find it difficult to crew your ships with Brazilians? “Very difficult. It is difficult from a recruitment point of view, with regards to the availability of trained seafarers. It’s one of our biggest challenges in Brazil at the moment: qualified people. But we work closely with other foreign vessel owners here in Brazil, and with the CIAGA officers’ academy; together, we run a cadet training programme. So when they’re done with their education, they have to do one year as a cadet, where we have a programme on our ships. The real problem area is with ratings, such as able seamen, motormen, wipers, even cooks and catering personnel. There is no schooling or education for those categories here in Brazil. We have therefore together with other shipping companies, including many Norwegian companies, taken the initiative to sponsor a one-year training programme for young Brazilians to become seafarers. The recruitment to this programme was this year from another social programme called Bola Pra Frente, which has the Norwegian government and Kongsberg Maritime as two of their sponsors. Next year we plan to extend the recruitment to include other social programmes here in Rio de Janeiro. The majority of these social programmes provide support to young Brazilians until they are in their late teens, but then they are basically left to themselves. Our idea is to provide a continuation by providing them with a profession and a job to go to. This is a very important programme, not only from a social perspective but also from a practical perspective, to be able to operate vessels here in Brazil.” 12

The company has eleven ratings under training via this programme, but Tischendorf acknowledges that Teekay Brazil will need to explore additional avenues to recruit sufficient ratings for its needs. “We need to expand the programme. We’d also like CIAGA to start recruiting larger classes. Because we’re an international company, we’re an attractive employer. So in general, we don’t have problems recruiting. But some years are tougher than others.” Are you satisfied by what you’ve seen of the future generation of Brazilian officers and ratings? “Of what we’ve seen so far, we’re very satisfied. These young people are very motivated and hard working. The Teekay Foundation, the major shareholder in Teekay Corporation, sponsors another project here in Rio directed towards young children and teenagers. My idea is to connect the

Today, Norwegians operate the industry. Some of it is still foreign-owned, but very much operated by Norwegians. That’s what I’d like to see here in Brazil. That it will gradually get more and more Brazilian in operation. That’s our intention here as well. We’ll have as few expatriates as possible. I think in the long term, if you look over the next ten years, Teekay will have to become a Brazilian shipowning company as such. It will still be owned abroad, but very much run as a Brazilian company.” In terms of business, how do you see the growth of Teekay in the market? “Obviously, the focus on the pre-salt discoveries has created a lot of attention on Brazil, resulting in more and more competition. From 2000 to 2007, there was basically no competition from other shuttle tanker owners. Today, not just other shuttle tanker owners, but also other tanker owners see the

Alex Tischendorf, director of Teekay do Brasil Servicos Maritimos Ltda.

kids from the one project that takes them through their early teens, and guide them into the next project, provide them with a profession and employment in the maritime industry. One of the purposes is to recruit people, but I also see it as very, very important that we give something back to this country because they are bringing us the profits. We need to give something back. That is our social responsibility.” What do you see as the future of Teekay in Brazil? “I see Teekay’s future in the same light as the future of Brazilian offshore oil and gas industry, because the two go hand in hand. Hopefully, Brazil will manage to do what we did in Norway. Because when the oil and gas industry came to Norway, there was basically no local knowhow about oil and gas. All the know-how was imported from outside. Then gradually the Norwegians built up the know-how internally.

opportunities and possibilities, so the competition has increased considerably over the last 2-3 years. By 2020, I see the existing fleet of shuttle tankers doubling to about 30 vessels. And I’d be very happy if Teekay could have 40-50% of that. Today, we’re very dominant and I know that that domination will be difficult to maintain. We’d love to maintain it, but we need to be realistic. We know Petrobras wants to see competition; they want to drive down the charter rates.” Who is your main competition? “Now, there are two other foreign companies owning and operating shuttle tankers here. That’s Lauritzen and Knutsen. They’re two companies with shuttle tanker experience. And when it comes to operating shuttle tankers, experience is important. Petrobras values experience. They are dependent on perfect operation; on an operation that has high performance. We believe, however, that more companies will enter this market.”

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Teekay scored early success with bare-boat charters to Transpetro, who were very eager to get shuttle tanker operations underway. As a company that owns and operates shuttle tankers, Teekay had the necessary skills to convert tankers quickly and get them in operation. Now, Transpetro has issued public bare-boat shuttle tanker tenders with much longer lead-times; these allow financial institutions to team up with shipyards and consultants to offer newbuild shuttle tankers, in direct competition with the likes of Teekay and other industrial operators. “At the same time Petrobras also wants to timecharter shuttle tankers from the international market, and this is where the established shuttle tanker owners have their chance. They probably do not wish to put all their crude oil transport business in one basket through Transpetro, as this, among other things, could expose them to risks associated with unions and strikes.”

How important is DP when marketing shuttle tankers? “It’s very important, and for this we have a very close relationship with Kongsberg. For example, we’re currently marketing some vessels here in Brazil and the DP capability of the vessels is essential for whether we’ll be able to conclude the contracts with Petrobras or not. We’re in dialogue with Kongsberg to support with DP information, and Kongsberg assists us when we discuss with Petrobras. “One of the challenges we’re facing in Brazil is the different way that DP operations are done, with respect to shuttle tankers. It’s a different way of offloading shuttle tankers from FPSOs than in the North Sea. So the DP software, and the procedures, that we have in the North Sea aren’t easily adaptable. We have to modify them. Now that Petrobras is moving to more hostile environments and deeper waters, like in the

Teekay’s role in the value chain In the 90s, Teekay expanded from its core operations as crude oil tanker company into DP shuttle tankers, floating storage and offloading ships (FSOs), gas carriers, product carriers and floating production ships (FPSOs). Today the company operates 39 shuttle tankers, 5 FPSOs, 5 FSOs, 83 crude oil tankers, 25 gas tankers and 12 product tankers all over the world, with concentrations in the North Sea, Brazil and Southeast Asia. Through its various operations, Teekay aims to be a one-stop offshore marine solutions provider. Will it be possible for Teekay to build shuttle tankers here in Brazil? “Absolutely, and it’s something we’re following very closely. The major part of shipbuilding in Brazil the last few years has been smaller vessels, and the majority of the shipyards (all but one) are not able to build the size of vessels we own and operate. It’s only Atlantico Sul that can build the size of vessels we need for shuttle tankers. And Transpetro has filled their orderbooks. So that yard’s capacity is tied up for the next five to seven years; there’s no chance for us to build vessels for delivery before 2016 at the earliest. There are projects to create more shipyards that could build the size of vessels that we need. But, again, there’s a two-three year lead-time to build the shipyard. Brazil was a great shipbuilding nation some years ago, back in the 70s. Their biggest challenge at the moment is middle management. The middle management of the 70s is now senior management, and a void has developed in that middle management tier.”

Santos Basin, we’re seeing increasing sea states. It gets pretty rough down there in the winter. And we also have issues with very strong currents and changing directions. The way we operate the vessels needs to be different here than elsewhere. “Together with Kongsberg, we’ve initiated regular meetings and seminars to discuss with Transpetro and Petrobras how we can improve procedures and increase efficiency of the vessels. It’s very important, like a joint-industry project, to improve on the operations. With Teekay as one of the leading shuttle tanker operators, and Kongsberg as the leading DP hardware and software provider, we make a good team.” And Petrobras appreciates this effort? “Oh yes. as an example, I had a situation only last week. Petrobras ran an analysis of one of our vessels, and wanted some more information on DP capability. Rather than going through lots of links, we put Kongsberg in Norway in direct contact

with Petrobras here in Brazil. We said: You two communicate, make sure you understand what is required, and then make sure you get it, and we made sure the information was exchanged. This has helped us a lot in promoting our vessels, so we look upon Kongsberg as an important partner in our work down here.” How important is Kongsberg’s local presence? “Local presence is very important and we appreciate very much that Kongsberg is well represented in Brazil. To have competent service engineers and spare parts readily available locally is essential for an efficient operation. The shuttle tanker trade is very intense and requires all equipment up and running all the time. But it’s a challenge for everybody as operations ramp up, with the increase in activity here in Brazil. To be dependent upon service engineers and spare parts to be flown in from Europe is very time consuming and expensive. We’ve had discussions with Petrobras when they are refunding our expenses. They ask why a service engineer has to fly business class from Norway, why they have to pay meal allowances, why we can’t use local. And we have to explain that there is no local. It’ll be beneficial for all service companies, and for us, to have greater local presence.” How are you trying to step up your Brazilian supply? “We’re working hard to increase our local supply; it’s one of our goals. That’s one of the reasons why we’ve moved our vessel operation from Norway to Brazil. We’re planning to use more local services and facilities than previously. For a large multinational shipping company, it’s very typical to have a centralized procurement organization, which we also have in Teekay. We have, however, now got acceptance for our idea of using local supply and service companies due to the special nature of our operation. So we will do more of our procurement locally in the future.” Do you see that the local suppliers are competitive? “Yes. We are here, the vessel is here, and if we can use a local repair firm to fix something, then it’s far cheaper than flying someone in from Europe to do it. In terms of general maintenance, there are qualified companies here, and in general it’s cheaper to use those. And with respect to purchasing equipment, if we can find it here with the same quality, it’s better. Import is almost always more expensive. So we believe that doing it locally will pay for itself. We’re convinced of that.” ::

THEME New directions

Article by The Full Picture Magazine :: Photos by Tommy Normann

Brazilian shipyard giant Estaleiro Atlântico Sul has sprung up practically overnight thanks to support from the national government, a technological partnership with Samsung Heavy Industries and a series of good, early contracts. The company’s ambitious industrial goals are matched by efforts to boost the lot of its home state of Pernambuco.

The Citizen Company Ricardo Lutz da Cunha e Menezes, Commercial Director and Naval Architect of Estaleiro Atlântico Sul

:: Estaleiro Atlântico Sul is perched on the easternmost tip of Brazil, in a small town called Ipojuca in Brazil’s northeast state of Pernambuco. This advantageous location means distances to valuable offshore markets in the Gulf of Mexico, East Africa and offshore Brazil are short, and steel and component supplies can arrive cheaply via major trans-Atlantic shipping routes. For all of its strategic positioning in terms of international supply chains, Estaleiro Atlântico Sul’s most prized location advantages are internal and domestic. The yard, together with a refinery and port, are part of an ambitious regional development programme supported by Brazil’s national and state governments. In exchange for low taxes and fast-track bureaucratic treatment, the yard pledges to pay back in the form of community and workforce development in its destitute home state of Pernambuco. The Full Picture magazine met Commercial Director and Naval Architect Ricardo Lutz da Cunha e Menezes of Estaleiro Atlântico Sul, who has been with the project since early this decade, when the yard was nothing but a landscape of sand. “An important part of the story of our shipyard is one of contributing to the skills and welfare of the community around us. Many of the shipbuilding skills at Atlântico Sul come 14

from southern Brazil, from Brazilian expatriates returning from Japan and from our technological partnership with Samsung, but our strength will come from our ability to develop the potential of the native workforce in this promising region,” said Menezes.

Ipojuca BRAZIL

A promising start First, some facts. Estaleiro Atlântico Sul was born when three major industrial investors the Camargo Correa, Queiro Galvao and PJMR Empreendimentos groups - joined together with the intent of launching a new shipyard, in 2005.

This group was attracted to the state of Pernambuco where regional and national authorities were setting up the port complex of Suape, which is meant to be a driving force in regional and national industrial development. With full support of technical partner Samsung Heavy Industries, operations officially began in mid-2007, and in 2007 the yard won a major contract: Ten Suezmax tankers for Transpetro, under Brazilian President Luiz Inacio da Silva’s PROMEF plan (Program for Modernization and Expansion of the Fleet). Atlântico Sul has been constructed with lofty goals in mind. Among its greatest physical assets are two goliath gantry cranes, each capable of lifting 1,500 tons. With these units, the yard will be able to construct large hull sections, which can then be lifted onto a construction and welded into place. Only two other yards in the world (both in Asia) have cranes of this magnitude, and they thus lift Atlântico Sul up into the prestigious class of so-called fourth generation shipyards. The yard will focus on construction of tankers, container ships, bulk and cargo carriers, and offshore platforms and platform hulls. The yard’s premises cover 16,200 hectares, which includes a 130,000 m2 sheltered production area. The drydock measures 400 by 73 by 12 meters, and two

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quays of 730 and 680 meters will provide space for outfitting of ships and constructing offshore platforms, respectively. As of May 2010, the yard had won an expanding order book of contracts, mostly for Brazilian national tanker company Transpetro’s PROMEF newbuildings (ten Suezmax tankers, five Aframax tankers, four Suezmax shuttle tankers with dynamic positioning and three Aframax shuttle tankers with dynamic positioning). It is also fabricating the lower hull for a Petrobras platform.

income, education and growth,” said Menezes. “Solidarity Life is what we call a voluntary program where shipyard employees contribute to community projects. Another project has targeted Tatuoca Island, near the yard, for social development. We have already hired 35 people from this community.” Additional efforts include a literacy program called Waves of Reading, a vocational technical school called Birthplace of Talents and support of a technical school in the state.

Value creation

Joining forces

One of the core assets of the Atlântico Sul shipyard - access to plentiful manpower - is a variable; that is, the shipyard’s region has tremendous potential, but the burden rests on Atlântico Sul’s managers to undertake the training and management of these resources to extract the value. “This region is traditionally a sugar-cane production area. That means there have traditionally been four months of heavy work, followed by eight without much employment. We come with an offer of thirteen paychecks a year. This alone can have tremendous value,” says Menezes. Atlântico Sul is one of the biggest new job creators in the region. Despite the national and regional governments’ efforts to draw employers, many of these new arrivals are small and bring with them their own skilled manpower. Atlântico Sul, on the other hand, employs 3,000 - the majority of which come from the region. Soon, it will expand to employ 5,000; indirectly, the yard will create as many as 30,000 jobs in the area. One stumbling block of young shipyards is steel price. If the price of this large capital input to newbuildings increases abruptly (and, historically, it has), a new yard’s liquidity can be challenged. However, due to the long term delivered order, Transpetro has minimized the construction issue by negotiating and supplying the steel plates and stiffeners for the first ships. Atlântico Sul has dived into this responsibility, with investments in schools, housing, environmental improvements, social programs and health packages. Among its most noteworthy efforts, the yard has prioritized hiring in five of the region’s poorest municipalities near the Suape port complex. A housing project, with 1,500 homes, is being built. And educational investments at the primary, secondary and technical school level are meant to provide a long-term stream of skilled labour streaming to the yard. “Atlântico Sul has developed a range of social projects, designed to benefit the communities around the yard, bringing them new forms of

Atlântico Sul’s success depends on careful management of all of the forces working in its favour: Support from the authorities, access to a large local workforce, strong investors and technical and design support from partners. An additional resource will be close relationships with key technology suppliers like Kongsberg Maritime. “One of the mandates in the PROMEF program is that 65 per cent of the ship’s total cost must come from Brazil. For the time being, much of this comes from the workforce, ships’ steel, electric cables, pipes, valves, pumps and such. We rely on partners like Kongsberg Maritime for advanced systems like the DP units on the shuttle tankers we’re building for Transpetro, but we also expect local content from the foreign companies too” says Menezes. At its current stage, with major orders underway and on the hunt for more, the yard is going through a lightning-fast professionalization process. This includes development of strong managers, certification to ISO’s 19001 and 14001 management and environmental standards, and the OHS 18001 safety standard and marketing towards an ever-broader group of international shipowners. Menezes himself met with The Full Picture at Atlântico Sul’s offices in Rio de Janeiro, where a team of engineers and marketers expand the yard’s horizons with international linkages. “We’ve managed to attract a lot of interesting partners and employees based on our core investment. Even a whole generation of Brazilian shipbuilders who have been working in Japan since the domestic industry collapsed in the 90’s are finding their way back to Brazil and Atlântico Sul,” says Menezes.

Full speed ahead In 2004, Atlântico Sul was more or less a beach. In May 2010, it launched the first of the ten Suezmax that it is building for Transpetro. Luiz

Social Focus Estaleiro Atlântico Sul has launched a number of social responsibility initiatives directed at its community in the state of Pernambuco. These have an impact on the region’s health, education, housing, literacy and environment. Birthplace of Talents: This was the first social project started by Atlântico Sul, and involved transforming an old municipal slaughterhouse into a school that will provide technical instruction. Inaugurated in July 2007, the school has capacity for 600 students, with five classrooms. Waves of Reading: Employees of Atlântico Sul and partner organizations have banded together to create a book collection, which forms the basis for a literacy program aimed at the Atlântico Sul community. This library travels around the region, lending out its collection for stretches of 30 days. Tatuoca Program: The island of Tatuoca (home to Atlântico Sul) is home to a relatively deprived community. The yard has started a literacy, social and job creation program for the island’s residents. This involved renovation of the community’s Santo Andre community school. The Engineer Francisco C. E. Vasconcelos Training Centre: This is the first technical school built by a private company in the state of Pernambuco. Started by the Atlântico Sul shipyard, the centre recreates the production environment at the shipyard in order to prepare residents in the community for work at a shipyard. Inacio da Silva was on hand to witness the event and called it a ‘self-affirmation’ for Brazil’s shipbuilding industry, noting that it was the first Suezmax tanker built in Brazil for 13 years and part of the country’s return to the top of the shipbuilding industry. Atlântico Sul’s investors have plotted out an ambitious route for the shipyard. In addition to the yard’s sheer size and scale, it has one of the largest flat panel production lines in the industry, eight plasma cutting machines and a high level of automation. In other words, the yard is prepared for greatness. “We will grow, and this growth will be to the benefit of our partners and our community. This is why we call ourselves the citizen company,” concludes Menezes. :: 15

THEME New directions

Article by The Full Picture Magazine :: Photos by Tommy Normann

NorSkan’s Brazilian Roots

NorSkan Offshore combines all of the offshore expertise of operations in the North Sea, with equipment, manpower and expertise from Brazil. The result? Brazil’s leading supplier of advanced offshore services. Kongsberg met NorSkan Offshore’s President at their Rio headquarters.

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:: The President of NorSkan Offshore, Hans Falnes Ellingsen, shares a vital anecdote that sheds light on the founding of what is today Brazil’s most advanced offshore shipowner. “Helge Møgster of DOF [the owner of NorSkan Offshore] looked at the offshore market back in 2000 and noticed some striking numbers. At the time, Brazil was producing around a thousand barrels per day; Norway was producing close to 3 million,” says Ellingsen. “There were three drilling rigs working in the North Sea, and 28 in Brazil.” A few years later, Norway-based DOF bought a 50 per cent share of Brazil’s NorSkan Offshore, and has since built the company up into a USD 1 billion operation. All of the company’s advanced offshore vessels (including pipe-layers, anchorhandlers and multipurpose ships) are equipped with Kongsberg dynamic positioning, automation and control systems.

Brazilian roots The Full Picture magazine met Ellingsen at Norskan’s offices Rio offices in Brazil. Ellingsen has a long personal relationship with Brazil. He first came to the country only one and a half years old. His family returned to Norway only two years later, but his older sister and brother never let him forget the times in Rio. As he grew up, Ellingsen nurtured a desire to return. “It became an obsession for me to return to Rio de Janeiro.” His fated return happened when he was 20 years old, as a coincidence. “I took a job on a pipelaying vessel, not knowing they would send me to Rio de Janeiro,” he explained.

Hans Falnes Ellingsen, President, NorSkan Offshore

He stayed with the vessel in Rio for two years and then returned home to continue studies in order to become a Captain. After becoming a captain, he returned to Rio. “There was always something that brought me here, even if I didn’t choose it,” Ellingsen commented. Ellingsen was working for Solstad Offshore in 1996, when the company won its first contract

in Brazil with Petrobras. At that time, most Norwegian offshore boats and workers had never been south of the English Channel. In 2000 Solstad had three Norwegian flagged vessels operating in Brazil. “This early experience was very valuable. We learned the ropes on ships worth USD 2.5 million; today, the ships are worth over $250 million. That’s what we are investing in each vessel today; it was a learning curve, and although I knew Brazil, there was still a lot to learn in doing business here,” said Ellingsen. In 2002 DOF came into the picture. They had been looking at Brazil for quite some time. The two operated NorSkan Offshore as a joint venture between DOF and Solstad up to 2005 in Brazil and also in Singapore. At the time, the two agreed to split this business geographically. Solstad Offshore, which had first opened up the Brazilian market, left, in order to take over the entire business in Singapore. DOF remained as the sole owner of NorSkan Offshore in Brazil. “DOF is an ambition company and saw the potential for growth in Brazil, especially.”

Brazilian operator Today, DOF has $1 billion invested in Brazil and seventeen vessels in operation, of which seven were built in Brazil. The company has five newbuildings under construction in Brazil and has plans for more. The rest of the fleet is composed of foreign vessels operated by NorSkan. “All the newbuildings are high-end multipurpose vessels, loaded with high capacity winches and advanced ROVs that can go down to 4,000

meters, the latest mapping and survey equipment. We also have a prototype for installing christmas trees (systems that control oil and gas flow at the subsea well-head). This is a completely new concept that can do the job in half the time a rig takes,” said Ellingsen. Traditionally, christmas trees are installed by semi-submersible rigs, which are comparatively slow and expensive. 17

THEME New directions

Newbuildings In the last three years NorSkan closed a variety of contracts. Among them the following ones are to be highlighted: SKANDI IPANEMA: An Anchor Handling Tug Supply Vessel with a three-year contract for OGX, with an extension option for one more year. This vessel will be delivered in 2010 and will be the first Brazilian vessel contracted by OGX. SKANDI SANTOS: A Subsea Equipment Support Vessel with a five year-contract for Petrobras,

with an extension option for five more years. This is the first vessel in the world doing offshore testing and installation of christmas trees, the contract is together with Aker Oilfield Services. SKANDI VITORIA: A Pipe Laying Support Vessel with a four-year contract for Petrobras, with extension option of four more years. This is the most advanced offshore vessel built in Brazil, made through a joint venture with Technip. This vessel will operate as a pipe-layer for Petrobras on depths down to at least 2000m.

The NorSkan Offshore vessel arrived in February 2010 for operations in the Santos Basin, and managed to install nine trees in the first month. “This should help open the market for several of these vessels. Because of Tupi and the rest of the pre-salt areas, demand for equipment is tremendous and we have positioned ourselves well. Now we’re investing in the most advanced vessels ever built in Brazil. They will be equipped by Brazilian suppliers, built in Brazil and manned by Brazilians. This makes a difference,” said Ellingsen.

A social angle to operations Finding specialized employees in Brazil is a problem that all companies working here face. Ellingsen believes that social programs such as Bola Pra Frente (see the article on Bola Pra Frente on page 20 of this magazine) are one of the solutions for acquiring this manpower. “We understand that to be a Brazilian company and to be respected as such here in Brazil, we must look outside the company. We need to look at our environment and recognize the needs of this environment,” says Ellingsen. NorSkan Offshore’s involvement with Bola Pra Frente started at a fortuitous time. The famous

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“Because of Tupi and the rest of the pre-salt areas, demand for equipment is tremendous” Hans Falnes Ellingsen, President, NorSkan Offshore

Company History NorSkan Offshore Ltda. represents the DOF Group’s activity in Brazil. It is the management company for all the group’s vessel operations in the region. With more growth anticipated in the region, NorSkan Offshore expects to grow from 330 to 640 employees in 2010. NorSkan has been a supplier to Petrobras since 2003. In 2007 and again in 2008, the company won the General Safety Award for its operations with Petrobras. NorSkan Offshore was established in Brazil in the year 2000 due to the bright outlook forecast for the Brazilian offshore oil and gas industry. Today NorSkan Offshore and the DOF Group operate one of the largest and most diversified fleets of state-of-theart Brazilian-flagged vessels. The fleet is considered to be the most technologically advanced in the Brazilian offshore industry. Furthermore, NorSkan Offshore is the largest Norwegian capital company in its segment in Brazil. The company has long term-contracts with several large customers like Petrobras, Shell, Chevron, British Gas, OGX and Statoil.

Brazilian football player Jorginho who had founded the project was worried that the kids who didn’t have a chance to continue football careers would go back to the street. Jorginho sought to give these kids training in specialized trades through the program; that is how the partnership began. It started with English classes and this year Bola Pra Frente, with the support of companies such as NorSkan, will train thirty teenagers to work as seafarers through a partnership with CIAGA, the Brazilian merchant marine academy. Through another partnership with SENAI (a Brazilian trade training institution), NorSkan Offshore is training forty teenagers for positions onshore. “I see that 99 per cent of the kids that have the chance are eager and enthusiastic to

study. They want to do this”, said Ellingsen. Together, NorSkan and Kongsberg Maritime are also investing in an apprentice program for the kids from Bola Pra Frente to work in their offices. So far, NorSkan has been able to place five of these apprentices in their offices and eight new seafarers from the program aboard their ships. “I get emotional when I see these things. We are trying and if everyone tries within their circle of influence, the world will be better, but someone needs to go first and show the way,” said Captain Ellingsen, with the emotion vivid in his eyes. He is also happy to announce that the seafarers that show the most potential will be selected to further their education to eventually become officers. :: 19

THEME New directions

Article by The Full Picture Magazine :: Photos by Tommy Normann

Ten years ago, Brazilian football champion Jorginho carried out his dream of building a school in his local community. Today, Kongsberg Maritime is one of several companies sponsoring the school.

Learning to Dream

:: After a successful football career and with a desire to help the community in which he grew up, Jorge de Amorin Campos (Jorginho) built the Instituto Bola Pra Frente with his own resources. The building was inaugurated in June 2000, and the school has been enormously successful. To achieve this, Bola Pra Frente makes use of the fascination of sports and the image of famous athletes. One such famous athlete is Jorginho himself. “It all began when I was 11 years old. I dreamt that I had built a Disneyland in the field where I used to play football in Guadeloupe, a poor region of Rio de Janeiro,” explains Jorginho. “Once I became a professional player, I spent a portion of the money I earned on achieving the dream of helping my community. I purchased the land of the field where I used to play football, and on June 29, 2000, we opened Bola Pra Frente Institute. It was the best investment of my life, because the Institute has transformed many lives, giving the opportunity of a better future to 920 children and teenagers.”

Dream, Learn, Work Kongsberg Maritime first got in contact with Bola 20

Pra Frente about four years ago, as a result of a social responsibility project together with five other Norwegian companies in Rio. Together, the six companies have established the Rio-based non-profit organisation, ‘Dream, Learn, Work’, which is working with several projects, and Bola Pra Frente is one of them. ”Most of the children who are here have very difficult situations at home. We are trying to give them dreams and goals, and to help them achieve these. The help we are getting from Kongsberg Maritime is a very important part of achieving this,” says Susana Moreira, Executive Director at Bola pra Frente. Kongsberg Maritime’s donation has contributed to a new classroom at Bola Pra Frente. This was accomplished in co-operation with the Norwegian government and the Norwegian Shipowners’ Association. In addition, the sponsorship from Kongsberg Maritime has contributed to school material, sports equipment, technical equipment and three trips to Rio. General Manager of Kongsberg Maritime do Brasil Tony Andre Håvelsrud hopes to see some of the children working for Kongsberg Maritime one day. “Next year we are bringing 20-25 of the oldest

Bola Pra Frente students to our training centre in Macae, where we will give them an introductory course in Dynamic Positioning and information about Kongsberg Maritime. I hope this will give these children new dreams and enable them to see new possibilities. We are also planning on giving a couple of the graduating students an internship with us,” he says.

Football to the classroom In order to attend the institute, children have to be enrolled at school and have satisfactory attendance in class. Bola Pra Frente offers them extra tuition in English and mathematics, in

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addition to sports. This helps keep the children off the streets. Bola Pra Frente has created a methodology that takes education to the football pitch, and football to the classroom. Football is an essential part of every Brazilian child’s life, especially those from the underprivileged classes. It helps them to perform in skills related not only to sports but in other important areas of life including family, school and community. “Initially, the institute offered only sports. Over time, we created our methodology, which uses sport as a tool for social inclusion. Today, our focus is on education while we use sport for publicity in order to attract children and

teenagers. We have three projects that have achieved excellent results. The project Craque de Bola e Escola (Expert of Ball and School) offers sports and education to children from 6 to 9 years old. The project Artilheiro (marksman) offers sports, arts and culture for children and teenagers from 10 to 14 years old, and the project Campeão de Cidadania (Citizenship Champion) offers sport and professional training for teenagers from 15 to 17 years old,” says Jorginho.

A boost for our team Jorghino is very pleased with the partnership between Bola Pra Frente and the Dream, Learn,

Work organisation: “Certainly, the support of the Norwegian companies means growth. It is a major boost for our team. This partnership makes possible English classes for our students, which creates new opportunities in the labour market, in addition to the construction of classrooms and other projects that are already underway. I am very happy and grateful to these companies. I hope, with all my heart, that this partnership grows, because it allows many children to continue dreaming in the same way that I dreamt,” adds Jorginho. :: www.bolaprafrente.org.br

THEME New directions

Article by The Full Picture Magazine :: Photos by Tommy Normann

When Seadrill came to Brazil, it started by building up a Brazilian organization under Brazilian leadership. This decision has paid off in many ways over the past two years. The company now has four rigs operating there, with plans for many more.

Homegrown Success 22

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:: The Full Picture Magazine met Eduardo Antonello, the Brazilian director of Seadrill’s operations in Brazil, at the company’s new offices in Rio de Janeiro. From here, we have a breathtaking view of the entrance to Guanabara Bay, where rigs, drillships, tankers and offshore support vessels shuttle in and out to service the pre-salt oil discoveries over one hundred miles directly offshore. Seadrill’s have been among those rigs that have come to help energy companies in Brazil drill down to oil deposits deep in the Santos Basin. Today four Seadrill rigs - West Polaris, West Taurus, West Eminence and West Orion - are chartered to operate in the pre-salt region; three of them for Petrobras and the fourth one for ExxonMobil.

around the world, Brazil’s government is keen to see its own citizens fill that resource gap. In the short term, this creates scarcity. “Getting the right people and holding on to them is one of the biggest challenges we have. We face a situation of cannibalism, whereby undifferentiated demand creates a pure bidding war for manpower and everyone snatches the skilled guy from underneath everyone else, and this is not healthy business,” says Antonello. Seadrill was not the first drilling rig operator into this market. In fact, it was among the latest to get into Brazil, as major competitors like Transocean, Pride Drilling and Diamond Offshore had been operating there prior to 2008. “We have the newest fleet of rigs and drillships

Antonello’s rightfully proud of Seadrill’s rapid pace of achievement in the Brazilian market, and the way in which the company has done it. While many operators show up with rigs manned up to 95 percent by foreigners, Seadrill’s rigs are all manned by a majority of Brazilians.

of our competitors, but that’s only a short-term advantage. Other operators will eventually come along with a newer rig, so we can’t rely on that to hold on to people,” says Antonello. “In order to create a more lasting difference, we are focusing on issues around performance, safety and motivation. Our values-based approach aims to give something above and beyond the salary; it’s a matter of mutual appreciation.” Seadrill has also been able to wrangle some of the best contracts from the market, which gives it the financial muscle to complement this management approach. Further, the company has kicked off a number of initiatives to find and keep the most skilled engineers and technicians. “One of our most interesting projects is the STAR trainee programme. Through this

A question of people

Eduardo Antonello, Seadrill

The combination of a firm belief in what the Brazilian economy and its people can achieve with Seadrill’s famed operational excellence is showing tremendous success here. This bodes well in a market that will probably see 40+ new drilling rig tenders made available over the next 5-10 years. Like any market under tremendous expansion, one of the key factors limiting growth is access to skilled labour. And, as in many other markets

THEME New directions

programme, we have pre-screened hundreds of skilled engineers and gotten them started in training for Seadrill operations. The final group of 19 candidates has now been narrowed down to just six, who will get fast-track career development,” says Antonello. Seadrill’s operations in Brazil have frequently broken symbolic barriers - moves that get noticed by Brazil’s government watchdogs. First and foremost, the company hired a Brazilian to lead its business there. Secondly, the company had upped its proportion of Brazilian workers to over 50 per cent within its first year of operations, even if 30 per cent was the requirement. Lastly, the company has stayed ahead of the paperwork curve with extensive planning.

“Without careful and detailed planning, companies may bring a rig to Brazil and stay several months struggling to go through the necessary permits and approvals, as well as the intensive sequence of acceptance tests performed by Petrobras,“ says Antonello.

is huge. Brazilians work 14 days on, 14 days off. Foreigners work 28 on and 28 off. We have Brazilian employees living all over the country. The picture very quickly becomes complex,” says Antonello.

Local builds Pre-salt logistics Another intransigent difficulty of Brazil’s pre-salt oil fields is logistics. With many of the operations as far as 350 kilometres away from Rio (the field’s shore base), it is difficult to ferry people, supplies and spares as quickly and cost-efficiently as at many other offshore theatres. “It’s difficult because you have lots of crew changes. Just the business of moving people

With the demand for complex offshore tonnage like semi-submersible drilling rigs, drillships and floating production units so high in Brazil, many wonder when and how the domestic shipyards and fabrication yards will be able to supply them. Seadrill Brazil is uniquely positioned to weigh those opportunities. “We have also looked closely into building rigs in Brazil, evaluating shipyards and the players

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involved. There has been a tremendous amount of speculation in the shipbuilding industry in Brazil. You have some companies trying to win one rig order to finance construction of an entire yard. We’ve decided to wait to properly understand how this industry will develop and who will be the serious players to partner with,” says Antonello. The demands and risks to building rigs are high. Seadrill has delivered the largest number of newbuilds since 2000 and with the best ontime and on-budget records, and understands how much it takes to reach these figures. Having a partner with extensive know-how and a solid proven design is strategic for the construction of the yards and respective drilling units. Just getting the appropriate operational and environmental

licenses can be time-consuming processes and impact the entire delivery schedule. Qualified labour is also scarce and new yards must have a solid agenda to recruit and train a large quantity of people within a short time-frame, so they can be ready when you first start cutting steel. And there is tremendous pressure around deadlines. “If none of the competing yards had ever built a DP rig, the purchasing party must understand very well this business to carefully evaluate if they can really deliver their first unit on-time within budgeted figures and with the appropriate building quality; otherwise, the game can become very costly” says Antonello. So far, the answer is unknown. Antonello expects that one of the big rig builders in Asia,

such as Jurong, Hyundai, Daewoo, STX or another may succeed in building a rig in Brazil on the back of a large series. “The complexity and costs of a modern design drillship are very high even in Korea; but I believe we will eventually be able to compete, especially if we manage to reach and train skilled personnel with the right level of commitment to make this a success history. Nonetheless, Antonello remains bullish on the technological prospects coming out of Brazil: “This is a big country with lots of resources and 200 million people. With the right leadership, you can make it happen here. Brazil is building jets, helicopters and BMW motorcycles 30 per cent cheaper than imports. Things like rigs will come.”

THEME New directions

Seadrill’s Leadership Today Seadrill’s drilling rigs demand the highest day rates of any of their kind operating in Brazil. With high rates, though, come high expectations, and charterers like Petrobras and ExxonMobil have put the pressure on Seadrill to perform. During Seadrill’s first year of operation for Petrobras, the company reported uptime of roughly 90 per cent. Maintaining that kind of performance will demand rigorous leadership and commitment from Seadrill’s management and employees throughout the company. “Our performance on the first contract has opened up many new doors to us. The rules we operate under are strict, but no stricter than those we face operating off of Norway. Our ability to capitalize on new opportunities depends on building up the right skills right here in Brazil,” says Antonello. Heavy investment in talent and leadership by Seadrill in Brazil are meant to obtain those skills and keep them. And, with that, the company stands a good chance of succeeding in Brazil during the coming decade. ::

Seadrill limited Seadrill Limited was established 10 May 2005, based in Bermuda with an offshore drilling fleet consisting of three jack-up rigs, two FPSOs, four newly built jack-up rigs and two newly built semi-submersible rigs. That same year Seadrill Limited was listed on the Oslo Stock Exchange (ticker SDRL). Seadrill is an international offshore drilling contractor providing services within drilling and well services. Together with partners, the company owns 40 drilling units. Seadrill’s versatile fleet includes harsh-environment semisubmersibles, jack-ups, shallow and deepwater tender rigs and deepwater drillships. In addition, Seadrill provides platform drilling, well intervention and engineering services. In January 2006, Seadrill acquired the Norwegian drilling contractor Smedvig, which originated from a long line of shipowning activities dating all the way back to 1915. This combination, under the Seadrill Limited banner is acknowledged as one of the world’s fastest growing drilling contractors. Seadrill´s offshore drilling fleet is considered one of the most modern in the world due to its emphasis on investing in technically demanding segments of the offshore drilling industry.

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THEME New directions

Article by The Full Picture Magazine :: Photos by Tommy Normann

Sevan Marine, the company known for developing characteristically round offshore floaters, is launching a deepwater drilling version of its design with two lengthy contracts in Brazil with Petrobras. A carefully selected team of experts will be on hand to ensure the rigsâ&#x20AC;&#x2122; success.

The Hand-Picked Rig

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::.The newly built Sevan Driller recently arrived in Rio de Janeiro and Billy Glover, Operations Manager for the Sevan Marine Drilling Units, spoke to Full Picture about the rig, and the handpicked team of drilling specialists he put together to break it in. The highly experienced driller has broken in a couple of rigs before, and he has no doubt that there will be issues to address with this one too. His confidence in the team of professionals he chose to run the rig buoys his spirits: “I’ve worked personally with all the managers on this rig. I know what they’re capable of, and I know I can rely on them,” he says.

“That’s why we chose Kongsberg, right? It’s the best. That’s the kind of equipment that we’re using on these rigs, all of it is the best.” Billy Glover, Operations Manager for the Sevan Marine Drilling Units

Success with the Sevan Driller is critical for two reasons. It is the first drilling rig built for Sevan Marine and its success will support confidence in the deepwater market due to the unique design of the unit ; the company has earned its name developing signature round floaters for offshore oil production . Sevan has another firm six year contract with Petrobras to work in Brazil for the drilling rig – Sevan Brazil In addition to the faith Glover places in his people, he knows that the rigs are being equipped with technology from the top shelf. “That’s why we chose Kongsberg, right? It’s the best. That’s the kind of equipment that we’re using on these rigs, all of it is the best. Nothing less,” says Glover.

From the drill-floor up Born in 1959, Glover started in the oil business at the age of 20 as a roustabout in the North Sea. He worked his way up, filling positions on a drilling unit all the way up to Rig Superintendant during his 31 year career. In 2002 he started to work onshore in Angola as the manager for Ocean Rig’s Leiv Eriksson for over 5 years. “In September 2007, I was given the opportunity 29

THEME New directions

Left to Right: Kristian Skagemo – Drilling equipment Specialist Billy Glover – Operations manager Stephen Knight – Senior Logistics coordinator Andy Whitelaw – Subsea manager Peter Watson – QHSE Supervisor Ian Raitt – Technical manager Chris Grove – Special projects manager Erwin Huysmans – Special projects manager

Company History Sevan Marine ASA (Sevan Marine) is an independent energy utility company founded in 2001. It is engaged in the building, owning and operating of floating units for offshore applications. Its operations are based in Arendal, Asker, Trondheim, Porsgrunn and Bergen, Norway and in Rio de Janeiro and Aracaju, Brazil, Aberdeen and Singapore. The company’s subsidiaries include Sevan Production AS (100%) and Sevan Marine do Brasil Ltda. The Group operates in four business segments: Floating Production, Drilling, Equipment and Systems and Corporate. Floating Production consists of the design, engineering, construction and operation of the Sevan platforms. Drilling consists of engineering, construction, hookup, completion and commissioning of drilling units operating in ultra deep water and harsh environment. Equipment and Systems consists of the provision of services and equipment to the processing plants for the Sevan platforms. Corporate comprises general administration and marketing activities. Sevan Marine do Brasil opened up the first regional office at the beginning of September 2006. Located at the city of Aracaju, in the Sergipe state, in Northeast Brazil, the office houses the headquarters of Piranema Serviços de Petroleo, a company that will provide operational support to the activities of the Piranema, first production unit of the Sevan Marine Group, under contract to Petrobras. The Sevan Piranema is the world’s first cylinder shaped FPSO and is based on Sevan’s unique and patented technology.

to join Sevan and took it with open arms. One of the main reasons that I chose to come to Sevan was the chance to work with its Vice President of Operations, Willy Tørhaug and Vice President of QHSE Dag Eggan. I’d worked with them both before in two previous companies and I have great relationships with them both and their professionalism and experience in this business is of the highest quality,” says Glover. On joining Sevan, one of Glover’s first tasks was to pick a crew; this process took him two years. Glover said that he handpicked the crew from the best in the business. He had personally worked with 70 per cent of them before; the remainder had received strong recommendations from his own personal network. All the managers and rig supervisors in the team worked with Glover before. This core base team includes the operations manager, QHSE manager, technical manager, marine manager, Subsea manager, operation engineering manager and supply chain manager. They have all been involved with various offshore drilling-related operations for up to 30 years, and have been involved for eight to twelve years in deepwater

operations. These included new build projects and start-ups in operations such as Pride Africa, Pride Angola, Leiv Eriksson and Eirik Raude. “The challenge and motivation for us in coming to Sevan Marine was the feeling of being involved in something new, something a bit exciting with dynamic, ambitious management. This is a new company trying to grow. We are setting up the whole system. We were given a blank piece of paper to write the procedures, build the QHSE system and make the maintenance system, and that’s what we’ve been doing for the last two and a half years. That was fun, starting from the ground up, and being able to put your own personality into how you do things,” says Glover.

A special rig Sevan Driller is designed to include the most advanced drilling capabilities in the industry. It is also based on Sevan Marine’s own patented technology that guarantees extraordinary stability and can easily withstand a force ten gale. The unit has a capacity to drill wells of up to 40,000 feet in water depths of up to 10,000 feet, storage capacity for 10,000 feet of risers, a variable

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Integrated into the KPOS 21 system is a Riser Management System (RMS). The Sevan Driller also combines the high deck load capacity of a drillship with the stability of a semi-submersible rig and has a transit speed 7-9 knots, powered by eight thrusters. The unit is designed to achieve higher cost-efficiency than its drillship and semisubmersible counterparts.

Operations in Brazil

deck load of 15,000 metric tons and a deck area of 5,800 m², as well as high storage capacity of bulk materials. The Sevan Driller is equipped with an internal storage capacity of up to 150,000 barrels of oil. All of the drilling modules are supported by the hull structure, which is double-sided, including a double bottom. Sevan Driller will normally operate with a crew of 150 and is fitted with a Kongsberg Maritime KPOS-21 and a KPOS-11 Dynamic Positioning System. The DP operator stations and computers communicate with each other on a dual network.

The Sevan Driller will start operations with 58 per cent of its crew from Brazil, and the company is actively training Brazilians in mid-level positions. These will eventually replace many senior-level expatriates, who will take over positions on the second rig, scheduled to leave China in 2012 and already contracted to Petrobras. In November 2009, Sevan Driller was delivered from the Cosco Qidong Shipyard in China, less than 30 months from the start of its construction. Sevan Driller arrived in Rio de Janeiro, Brazil on Saturday March 27 2010 after a 10,000 mile voyage from China. The ultra deepwater drilling unit has undergone customs clearance and acceptance testing by Petrobras in Rio de

janerio and Macae prior to the commencement of operations under its six year contract. It has now sailed to Vitoria in order to drill its first well at the Campos Basin, in 1,800 meters of water. This first drilling operation in the Campos Basin is expected to take 160 days, with another 30 days for well testing. The Sevan Driller will then sail to the Santos Basin to start drilling new wells there for the rest of the contract. According to Glover, the main challenge in Brazil (other than finding experienced Brazilian employees) is to have vital equipment in stock. Even though the main suppliers all have offices in Macae, they normally don’t have equipment stock available, so they need to import it; this takes time and can have a negative influence on operations. “Another challenge is technical support, such as engineers from main equipment suppliers, but it is encouraging to see that companies like Kongsberg and AKER now have professionals on the ground here,” he says. “Response has always been very positive from Kongsberg; you get to know who to talk to and the relationship builds.” ::

THEME New directions

Article by The Full Picture Magazine :: Photos by Scanpix

Squeezing through the Bosphorus Call it precision navigation with a drilling rig. When the Leiv Eiriksson drilling rig had to be towed through Turkeyâ&#x20AC;&#x2122;s Bosphorus Strait, a team from Kongsberg was ready to tackle any risk.

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:: Bosphorus is the name of the strait that connects the Black Sea to the Mediterranean. The channel was formed around 7,600 years ago when the Mediterranean and the Marmara Sea forced their way through land to the Black Sea. The resulting flood may have inspired stories of the Great Flood in the Bible. Towing a massive drilling rig through the narrow strait should rank as one of the world’s great passages. Leiv Eiriksson is the largest rig ever to be piloted through these historical waters, and the sailing would not have been possible without the help of Dynamic Positioning from Kongsberg.

Prepared for the worst Every year, 50,000 vessels pass through the Bosphorus strait, which cuts the metropolis of Istanbul in two. From the harbours on the innermost shores of the Black Sea, crude oil and gas are shipped out to the world markets. It is very rare for the strait to be closed to all traffic, but this was the case when Leiv Eiriksson was due to sail through the Bosphorus. “The current was most definitely our greatest challenge while planning the operation because it does not follow the channel in a straight line but runs in a zig-zag pattern. Our major concern was the side current, as it could push us towards the shallow waters. If we had run aground in the middle of the strait, it would have been front page news,” explains Stein Svendsen from the company leading the operation, Ocean Rig. At 7 A.M. on New Year’s Eve 2009, Stein Svendsen and the rest of the crew are on the bridge of the Leiv Eiriksson, gazing down the strait. The air is still cool and hazy after a cold night. But as Leiv Eiriksson sets its course for the mouth of the strait, the sea and air turn red in the morning sunrise. The operation they are about to execute is colossal. There are so many uncertainties. Despite this, the crew are remarkably calm. They’ve been through it all before - in a state-of-the-art Kongsberg simulator.

Rugged and salty training “The drilling rig is equipped with the very best navigation equipment from Kongsberg Maritime. We used the simulator to prepare the crew for all kinds of potential situations, such as loss of engine power. We were also able to carry out exercises in precise communication procedures between the rig and tugboat,” explains Anders Hovde of Kongsberg Maritime. Vebjørn Gulbrandsen was one of the participants who completed the training in the simulator at in Kongsberg, Norway: “Our simulator training 33

THEME New directions

New Differential Positioning System Tested The sophisticated new DPS 4D Differential Positioning system from Kongsberg Seatex was successfully tested during the navigation of Leiv Eiriksson through the Bosphorus Strait. Leiv Eiriksson is one of the first vessels to apply DPS 4D, which uses the latest advances in GPS/ GLONASS technology, aided by inertial technology utilizing Kongsberg Seatex’s new high performance Motion Reference Unit, MRU 5+, to optimise signal tracking, integrity and availability for Dynamic Positioning (DP) applications under challenging GNSS conditions. Ocean Rig reports that DPS 4D provided continuous, accurate position data during the transit of the Bosphorus Strait, demonstrating integrity and availability of position data at all times. “The Bosphorus Strait is known as a hazardous area for navigation. While bridges and other obstacles interfered with other satellite-based reference systems onboard, we were able to reference our position continuously, because we had

DPS 4D. The availability of position data helps to improve safety and efficiency of operations and I’m confident that DPS 4D will enhance future navigation and manoeuvring operations for Leiv Eiriksson,” comments Stein Egil Svendsen, Marine Manager at Ocean Rig. KONGSBERG DPS 4D utilises all available satellite navigation signals by combining GPS/GLONASS and MRU 5+ into a single system. The MRU 5+ measurements effectively bridge gaps in the satellite signal caused by physical obstructions, ionospheric activity and shadowing from nearby objects that may reduce signal availability. RAIM (Receiver Autonomous Integrity Monitoring), enhanced by data from MRU 5+, also provides an assessment of the reliability of position and velocity data under challenging GNSS conditions. DPS 4D is also designed to utilise all frequencies in systems available today as well as future GNSS signals and future global satellite navigation systems such as GALILEO.

allowed us to remain calm. We didn’t have to worry about what might happen because we were well prepared for all eventualities. We’d all completed drills in every different task, in case one of us became incapacitated during an emergency. That gave us an extra feeling of security,” he explains.

A helping hand On the day of the transit, something rare happens. 99% of the time the current in the Bosphorus Strait flows from the Black Sea into the Mediterranean. On 31 December, the surface current is going in the opposite direction. This is good news. In order to enter the strait, the Leiv Eiriksson has to empty its ballast tanks, allowing it to creep over the shallow waters on the southern side of the strait. The Leiv Eiriksson slides with the current past the well-known landmark - the Sultan Ahmed mosque, which towers over the mouth of the strait. Once the rig is into the strait itself, the ballast tanks are refilled with water. Because the rig must pass under two bridges, it needs to sit lower in the water. Filling ballast in the middle of the current is a critical phase of the operation. The Dynamic Positioning system is changed from manual to

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Facts

The Bosphorus Strait •36 metres deep at its shallowest point midstream •The world’s shallowest strait used by international shipping •Forms the border between Europe and Asia •750 metres at its narrowest. The shipping channel is 200 metres wide at its narrowest point. •Around 30 km long •The surface current travels in the opposite direction to the undercurrent •Currents up to 10 knots have been measured Leiv Eiriksson •36,000 tons •Length 120 metres •Beam 85 metres •Transit speed 7 knots •Draft of 30 metres with full ballast •One of the largest drilling rigs in the world

automatic control. It is paramount that the rig remains in the same position during the ballast procedure. “All four tugboats kept a taut line throughout the operation to help stabilise, which, in combination with the powerful current, posed a challenge for the positioning system,” explains Svendsen.

20 cm under the maximum height With the ballast tanks full, Leiv Eiriksson continues into the strait. The route has been carefully planned in advance. Each metre has been programmed into the rig’s K-Bridge Integrated Bridge System, a complete navigational system from Kongsberg Maritime, used on ships all over the world. “Once the ballast tanks were full, the rig had a draft of 30 metres. We had to follow an extremely narrow corridor to avoid submerged shipwrecks and shallow sandbanks. On our sailing through the Bosphorus Strait, we had 6 metres clearance up to the bridge and only a few metres clearance of the seabed. We were just 20 cm under the maximum height permitted by Turkish authorities,” confirms Svendsen.

TV stars Joining the crew on the sailing was the British production company, Original Productions, creators of “The Deadliest Catch” on Discovery Channel. The documentary they filmed on the sailing has already been broadcast by a number of international TV stations. In Norway, the documentary will be broadcast on Viasat 4 as part of the Nordsjøliv series (North Sea Life). The film also shows how the crew trained in the simulator in Kongsberg. After 7 hours and 30 km in narrow waters, the Black Sea finally receives Leiv Eiriksson. There is a definite feeling of relief onboard the rig. All they have to do now is set the heading for their destination – the fields where Ocean Rig plans to drill for oil and gas over the next three years. Svein Svendsen and the rest of the crew describe an overwhelming feeling of having taken part in something momentous, with the safety of knowing that the rig is equipped with the most advanced navigation equipment in the world and the feeling of mastering the technology and succeeding as a team. They are already looking forward to the return trip. ::

Dynamic Positioning Method to keep ship and rig in the same position over the seabed using the ships’s own propellers/thrusters. Also used for precise manoeuvring. A computer onboard the ship collects data on wave height, current, wind, ship’s heading and position. By using extremely advance cybernetics, the computer predicts changes before they actually occur. The computer sends command signals to the ship’s propellers, rudder and thrusters, which allow the computer to compensate in advance for changes in the environment around the ship and thereby ensure precise and secure maneuvering or operations. Figures •The rig and tugboats stretched out over 600 metres •The rig was just 20 cm under the maximum permitted height for vessels crossing the Bosphorus Strait •Had to pass over shipwrecks with a clearance of 40 metres •Three new 80-ton thrusters had to be assembled for the crossing of the Strait

THEME New directions

Article by The Full Picture Magazine :: Photos by Jonas Borg

Upgrading franklin Swedish company Marine M채tteknik AB has a goal of being at the forefront of marine survey services and a three-step upgrade of the survey research vessel M/V Franklin reflects the importance of this strategy.

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:: The Full Picture Magazine met Fleet Manager of the Swedish research company, Marine Mätteknik AB (MMT), Svante Johansson onboard M/V Franklin in Stockholm’s harbour. M/V Franklin is the largest in a series of five survey research vessels owned by the company. Fully equipped for seabed survey in water depths between 10 – 2000 meters, M/V Franklin has a proven track record covering hydrographical surveys, ROV operations, geotechnical sampling, geophysical seabed mapping and environmental assignments undertaking a variety of survey projects worldwide. Dating back to 1985, by 2009 the vessel was ready for an upgrade. “Vessels like these have an almost unlimited lifespan. The systems onboard, however, need to be replaced at certain intervals. Shortly after our company bought Franklin in 2005, we started planning a three-step upgrading process. We already knew that some of the systems had reached the end of their lifecycle, and a refit was necessary for the continued operation of the vessel,” explains Johansson.

Fastest growing company

left to right: Torben Marthinsen – Senior project manager in Kongsberg Maritime’s refit department Svante Johansson – Fleet manager of Marine Mätteknik Torstein Hånes – Field Enginner in Kongsberg Maritime, who has been working onboard during the upgrade of M/V Franklin.

Dating back to 1976, MMT is a fairly young company within the marine survey market. Its track record however, shows projects going on in all corners of the world. Among the typical tasks performed by the company are bathymetrical area surveys for chart production and route surveys for telecom fibre cables, power cables and pipelines. Geophysical site surveys are performed for various offshore infrastructures, archaeological objects, wrecks and for ammunition searches. MMT also performs environmental mapping projects in lakes, rivers and costal areas as well as offshore in deep water. The company employs a staff of project managers, marine geologists, geophysicists, biologists, oceanographers, engineers, technicians and ship’s crew. In 2009 it expanded its fleet by acquiring M/V Icebeam and won the annual GASELL award for the fastest growing company in Västra Götaland County, Sweden. 37

THEME New directions

“We have expanded significantly during the past five years and have gained customers all over the world in different projects. We employ vessel crew as well as survey personnel. Our goal is to keep our market share and be in the forefront within survey equipment and vessels in order to meet a highly technical – and knowledge intensive market,” says Johansson.

ROVs in demand A special area of commitment for MMT in achieving their goal, is the use of Remotely Operated Vehicles (ROV) for seabed mapping and object detection. M/V Franklin already boasts two ROVs used in the search for metallic objects beneath the seabed and verification of objects detected by other instruments. Last year, the company acquired two additional Mochian ROVs for its latest addition, M/V Icebeam. Among other projects, these will be used during an ROV Munition Screening Survey contract for the Nord Stream gas pipeline between Russia and Germany scheduled for completion in 2011. “We are experiencing an increasing demand for ROVs by our clients, so this is an area in which we are aiming to expand,” comments Johansson. 38

Looking for references Keeping their vessels up to date is vital for the continued success of the company. A three stepupgrade of M/V Franklin was therefore necessary, including the alarm system first, machine and engine systems second and an upgrade of its DP-class third. Kongsberg Maritime was chosen to deliver its K-Chief 500 marine automation system, including power management and AutoChief C20 main propulsion control. As part of the upgrade, AutoChief C20 was fully integrated with a TC-500 thruster control system and interfaced to the DP system onboard once the vessel was upgraded to DP class. “We always look for references when choosing a vendor. Kongsberg Maritime had some good testimonials in combination with a favourable delivery time and price. Although we are a relatively small company, they have always taken good care of us,” says Johansson.

Includes all functions All systems delivered by Kongsberg Maritime in connection with the upgrade were installed and commissioned successfully during only three weeks of dry docking at Götaverket in Sweden. “This is a very complex refit project because it involves a large part of the functions onboard the

vessel,” says senior project manager in Kongsberg Maritime’s refit department, Torben Marthinsen. As the project manager from Kongsberg Maritime during the upgrade of M/V Franklin, he emphasizes good planning as a key to success. “Since we only had three weeks to complete deconstruction, installation and commissioning, a carefully planned time schedule was crucial for the success of the project. M/V Franklin is quite a small vessel, making it impossible to have too many people working onboard at the same time. We solved this efficiently by having only one engineer onboard and a good project team providing support from Horten,” he explains, also pointing out some of the challenges met when upgrading a vessel as old as M/V Franklin. “Since the boat is quite old, you never know what you will find. For instance, the drawings may not always be in accordance with the actual systems onboard, and you have to be ready and willing to adjust the original plan,” said Marthinsen.

Controlling speed One special feature of this upgrade is cruise control for improved speed management, enabling M/V Franklin to keep a steady pace when towing cables. Prior to the installation, speed was controlled

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manually. The new cruise control will reduce the fuel emissions, providing reductions in both the environmental impact and the operational costs of the vessel. “The ‘cruise control’ is a very useful feature as it makes the speed control between four to six knots more precise when towing equipment. Since speed is crucial for the quality of data gathering, this feature should be mandatory equipment onboard all survey vessels,” comments Johansson.

Kongsberg – a preferred vendor Although Kongsberg Maritime’s delivery was a first with regards to automation systems, it is not an unfamiliar name with MMT. As a survey company specialising in delivering high resolution

bathymetry data, MMT’s fleet already boasts several products from Kongsberg’s subsea product range. Only during the past year, the company purchased three new EM3002 dual head multibeam systems, one of which is installed on the new M/V Icebeam. The first Kongsberg Multibeam was installed on one of MMT’s vessels in the mid-nineties and MMT has since operated different Kongsberg Maritime multibeam systems at various locations worldwide. The latest purchase means that a total of eight modern Kongsberg Maritime Multibeam systems are installed on MMT’s fleet of survey vessels and ROVs. “It is a dream to be able to have all the systems from the same vendor, but unfortunately that is not the case today. However, it will be very

interesting for us to see the complete solutions Kongsberg has to offer for survey vessels in the future. I absolutely believe that vendors that are able to provide complete solutions and who succeed at integrating their systems have a great advantage in the market,” says Johansson.

Making a superb ship even better With such good results in recent years, Johansson is optimistic with regards to the future of MMT and is confident that the upgrades were necessary for reaching the company’s goals. “This upgrade will prolong the lifetime and improve the performance of M/V Franklin. With these new investments, we have made a superb ship even better.” :: 39

THEME New directions

Article by The Full Picture Magazine :: Photos by Tor Aas-Haug

Attention to Detail Yacht owners and captains demand the latest, most advanced technology for their vessels, with attention to aesthetics. This poses extra challenges to the supplier. Northern Star is a case in point.

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“We did some research in the market and found that Kongsberg Maritime’s solutions are way ahead of the competition.” Craig Franks, Captain on the Northern Star

:: What first strikes you onboard the Northern Star is the peaceful atmosphere. Although in the process of commissioning, the crew members seem fully focused on their allocated task. The second thing you notice is the great attention to detail. Nothing onboard this yacht is left to chance. From the ship’s deck to the seating arrangements, everything is carefully planned and tastefully designed. Even on the ship’s bridge, all systems are flush mounted into the same panel to match in colour and style. “It is very important to us that our systems are functional, user-friendly and 100 per cent reliable. This requires a lot of careful planning and close co-operation with the shipyard and suppliers,” says the captain of Northern Star, Craig Franks.

Ice class

Handpicked crew

features, such as a large fuel capacity for longrange cruising and extra insulation for extreme climates and cold water,” says Franks. In order to get the best suitable systems for voyaging in such harsh conditions, the yacht owner looked at equipment suppliers for the offshore market. Subsequently, Kongsberg Maritime was chosen to deliver systems for navigation, DP and thrusters control. Kongsberg Maritime has supplied an integrated package with multifunctional bridge displays, a stationkeeping joystick system, track-keeping autopilot and a comprehensive bridge manoeuvring system, controlling both of the engines, gearboxes and rudders, together with the aft pump-jet and bow tunnel thrusters. All of this equipment is fit for the operation of large offshore vessels that depend on reliable systems for all conditions and climates. “The owner of the Northern Star has a good understanding of ships and has been personally involved in the decision-making process. He wanted to use the offshore market as a reference when choosing systems for the Northern Star, and recommended that we look at equipment from Kongsberg Maritime. We did some research in the market and found that Kongsberg Maritime’s solutions are way ahead of the competition,” says Franks.

When signing up for duty aboard a luxury yacht, you might expect to be somewhere exotic, like the Caribbean. This is the case for the Northern Star for half of the time. Unlike many of its peers, this yacht is equipped to sail in arctic waters. A steel reinforcement in the bow and forward part of the hull enables the Northern Star to cruise safely in ice-strewn waters. Indeed, cruising in the footsteps of Norwegian explorer Roald Amundsen through the North-West passage off the coast of Canada is one of the ambitions of the owner of the vessel. “Since our owner has a special interest in adventure travel, this ship is designed to go to the four corners of the world. It has some special

Craig Franks onboard The Northern Star

Powered by two 2000-kilowatt Caterpillar engines, Northern Star has a cruising speed of 15 knots and a top speed of 18 knots. She measures 75.6 metres long and 13.5 metres abeam. In addition to the owner’s suite, the vessel contains five spacious cabins, giving a total capacity of 12 guests. Each of the guest cabins has its own en-suite bathroom with individual design and artwork. There is also a luxurious dining area, a sky lounge, a common room, meeting rooms and a beauty parlour with facilities such as a hairdresser and a massage therapist. In order to keep the vessel looking new and clean, shoes are forbidden onboard, even in the engine room. The crew quarters are also carefully planned. To cater for guests and keep the vessel afloat, Northern Star has a crew of 22, who reside in modern two-berth cabins, with access to a mess hall, a common area and a gym. “Each crew member is sourced and interviewed by the Captain, and the recruitment process happens by word of mouth. We prefer that the crew stay onboard for a 12 month contract, but this varies. Most of the crew members are young people who are interested in travelling and seeing the world,” explains Franks.

THEME New directions

Project engineer Jonas Beyer Strømquis during commissioning.

Focus on appearance The Northern Star was built by Lürssen Yachts in Germany and was completed during the autumn of 2009. By the time she left the shipyard, nearly 4 years had passed since the project was initiated. According to sales manager in Kongsberg Maritime, Roger Trinterud, this is not unusual for yachts. “Because of the focus on appearance, it might take several attempts before the results are satisfactory to the owner. This focus on style is very different from what we are used to, so our equipment had to be adjusted compared to a normal offshore or merchant vessel delivery. It had to be tailormade to meet the demands of the client,” says Trinterud. “Take the bridge console as an example; all of the panels are recessed and flush mounted into 42

the aluminium. When panels from other suppliers were not approved by the client, the yard provided one that was tailormade, based on a blind panel from Kongsberg Maritime,” adda Trinterud. One particular challenge encountered during installation on such a comparatively small vessel was lack of space, which forced the project team to get creative. “This vessel is a lot smaller than the types of vessels we usually supply. Combined with the emphasis on aesthetics, the lack of space was a challenge. We solved this by placing electronics in panels above the ceiling and redesigning our cabinets,” explains Trinterud.

Prestigious contracts During the past few years, Kongsberg Maritime has delivered systems to approximately 50

percent of the mega-yacht market. Although not the largest contracts in sum, they are of great symbolic value. “There are not many yachts of this type and size built every year, but about half of them have Kongsberg equipment onboard. Since yacht owners often want the latest equipment, winning these contracts is testimony that we are at the forefront of maritime technology. Yachts often require special features or pose specific challenges, to which the client will sometimes suggest the solutions. This has an educational effect for Kongsberg Maritime, pushing us to see new possibilities and to reach new levels,” explained Trinterud. ::

Article by The Full Picture Magazine :: Photos by Tor Aas-Haug and Transocean

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Sedco Rigs A Blank Slate To meet market demands for deepwater drilling, Transocean chose to upgrade two of its Sedco 700 series drilling rigs to dynamically positioned class 2 semi-submersible rigs. The process was so comprehensive the rigs were classified as newbuilds.

:: Before Transocean’s Sedco 706 set course for Brazil last year to drill for oil on a five-year contract with Chevron, she underwent a year of upgrades at the Keppel FELS Yard in Singapore. The aim was to retrofit her into a dynamically positioned (DP) class 2 semi-submersible rig, capable of operating in moderate environmental conditions and in water depths down to 6500ft. In order to achieve this, major structural works were carried out, including a pontoon and column extension in order to contain more drilling fluids. Mark Vermeulen, Commissioning Engineer at Transocean elaborates: “This upgrade included a completely new drilling system, a new piping system as well as new marine and ballast systems. When we started the rebuilding project, only the pontoons and columns were left. In order to keep

the stability of the rig, extra blisters were added to the columns and the pontoons were extended to be able to deal with all the new equipment.”

Keeping the value As the world’s largest offshore drilling contractor, Transocean leases floating, mobile drill rigs, as well as the equipment and personnel needed for operation, to oil and gas companies worldwide. The company launched its first jack-up drilling rig in 1954. Since then, Transocean has had a long history of ‘firsts’: among them, the latest generation of ultra-deepwater semi-submersible rigs and drillships, of which the upgraded Sedco 700 rigs make up an important part. “For Transocean, upgrading is a way of ensuring that our assets stay valuable and our

fleet stays up to date. By adding new technology to ships, they become compatible with current applications and requirements,” says Vermeulen. In addition to the cost saving, Vermeulen sees several advantages of refitting, compared to building completely new rigs. “One advantage is saving time. Production time is reduced, meaning that you’ll get a much faster return on investment for the conversion. A newbuild may give you new facilities that might not be possible with a refit, but it takes so much more time.”

Safety first Deepwater drilling takes place far from the coast in water depths of more than 4,500 ft. Semisubmersibles, such as Transocean’s Sedco 700 43

THEME New directions

Left to right: Stig Lauvmo - project engineer for KM during the Sedco refit; Erik Svanberg - KM project engineer, software responsible on the Sedco refit; Håkon Hvidsten - project manager, KM; Kent Robin Berglund - hardware responsible during the Sedco refits, KM; Mark Vernmeulen - comissioning engineer, Transocean

Kongsberg Maritime Equipment on Sedco 706 •Dynamic Position (DP) system including 3 operator stations, DP logger, multiple DP reference system and DP controllers •Power Management System including a history station providing facilities for long-term storage of alarms, events and time-series •Thrusters Control System •SVC (Vessel Control) & Auxiliary System including 12 SVC operator stations •Fire and Gas with Emergency Shutdown System (ESD) including multiple ESD matrix panels

series, are fitted with large, buoyant pontoon structures below the water surface and columns passing through the water surface supporting the platform deck at a significant height above the sea surface. Keeping the position of a semi-submersible rig during oil drilling and gas exploration is of critical importance for safety. In order to achieve this, the Sedco 706 semisubmersible rig relies heavily on its Dynamic Positioning (DP) system for automatic station keeping; it previously relied on anchors. As a result of the upgrade, Sedco 706 now features a DP class 2 system provided by Kongsberg Maritime. The upgrade also consisted of systems for power management, thruster control, vessel control & auxiliary as well as fire and gas with emergency shutdown from Kongsberg Maritime. “The Kongsberg systems contribute to the safety of the people onboard and the management of the rigs,” says Vermeulen. “We are now dealing 44

with automated systems that monitor and provide supervisory control and operation, ensuring that we protect the environment, the people and the equipment onboard. Compared to where they were before the conversions, these rigs have made a huge step forward with regards to automated protection and control.”

Like a football field When winning a refit contract, Kongsberg Maritime usually sends an expert to perform a site survey and prepare a site report including a suggested system layout, a detailed project plan and a cost analysis. This forms the basis for the delivery contract, before the engineering phase, installation, commissioning and training. The refit of Sedco 706 however, was slightly different. “I usually go onboard the vessels at the beginning of a project to perform a site survey, but in this case everything had been taken away, so there was nothing to see. Instead we made a

detailed project plan with the site team from Transocean and adjusted the scope of supply,” says project manager at Kongsberg Maritime, Håkon Hvidsten. “When I went onboard the 706 for the first time, it looked like a football field on top. There was nothing there. It was so large that although there were close to 1400 people working onboard at peak time, I hardly saw a single person.”

Double conversion The retrofit of the Sedco 706 is the second in a double conversion contract. Transocean had already upgraded its Sedco 702, with mainly the same team from Kongsberg Maritime involved. The lessons learnt from this first conversion became the basis for the Sedco 706 project. “The original engineering was planned so that the two rigs would have an identical conversion, starting from the same position and basically ending in the same position. It was intended as

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A history of firsts •Transocean holds 80 per cent of the past 23 deepwater drilling records •First offshore jackup drilling rig •First self-propelled jackup •First turret-moored drillship •First dynamically positioned drillship for exploration •First dynamically positioned semisubmersible •First fourth-generation semisubmersible •First rig to drill year-round in the North Sea •First semisubmersible for sub-Arctic, yearround operations in the Barents Sea •First semisubmersible for year-round drilling •West of the Shetland Islands in more than 4,000 feet of water •First deepwater semisubmersibles with patented Tri-Act derrick •First ultra-deepwater drillship with patented dual-activity drilling system

Transocean today •More than 21,000 employees in 30 countries •Largest offshore driller with 138 mobile offshore drilling units, plus an additional eight newbuild rigs •Largest jackup rig driller with 65 units •Largest “floating” rig driller with 70 drillships and semisubmersible rigs •Largest deepwater driller with 36 rigs that can operate in water depths of 4,500 feet or greater •Largest offshore driller by equity market capitalization

a duplicate conversion one after the other, but they ended up with large differences. On the 706 we agreed to have only two main points of contact with Kongsberg Maritime, so that anything within our organisation related to the Kongsberg systems went through us. This narrowing down of the contact lines made a huge difference for the efficiency of the project,” explains Vermeulen.

Local involvement Another main difference between the two conversions was that with the 702, most of the work was done from Kongsberg’s main office in Norway. During the conversion of the 706, a local team in Singapore took care of most of the same work. This is the first time a refit project has been run entirely from this local Kongsberg Maritime office. “We have a large office in Singapore”, says Hvidsten. “In general, the 702 was run by

Norwegian engineers with assistance from the local office. At that time, the Singaporean office was still undergoing extensive training to reach the level they needed to be at, so when 706 came along, they were more than prepared to run the project.” This local involvement was a result of a specific request from Transocean in order to minimise the travelling time and expenses of the engineers if support was needed, and to ensure local competence for future projects. “For each engineer in the project, there is cost involved. We wanted the flexibility to increase the work force if required. This would be easier and less expensive from the local office. By increasing skills locally, you also increase the possibility that they can take care of future projects without always relying on heavy support from Norway. I think that this turned out to be a benefit for everybody because it has been driving local employees to reach the level that you want to

see for your branch offices,” Vermeulen says, also emphasising local involvement as an advantage in the training of staff. “A lot of our staff members need training and if there is a local, regional office it reduces our travelling costs in connection with courses.”

A better company Hvidsten describes the benefit of these refit projects to Kongsberg Maritime: “This is an extensive contract comprising many of our products, including automation, DP and safety systems. Transocean is an important customer and it’s always interesting to work with the leading companies within their field. You always know they have high technological demands pushing our project group to perform better. Working in these types of projects contributes to making us a better company.” ::

THEME New directions

Article by The Full Picture Magazine :: Photos by Tor Aas-Haug

The Coast Guard Supervising, rescuing and providing assistance at sea 24 hours a day, 365 days a year along the entire Swedish coastline requires the latest, most reliable equipment. That’s why the Swedish Coast Guard recently renewed its fleet.

:: With the 250 kilometre Swedish coastline as its workplace, the Swedish Coast Guard undertakes a wide variety of tasks in order to secure a healthy and safe environment. When the Baltic Sea is covered with ice during winter, it is the Coast Guard that comes to the rescue of vessels trapped in the floating ice rafts. And in the case of oil spills, the Coast Guard is responsible for cleaning up. In addition, it fights fires, monitors the coastal environment and oversees the speed limit for private vessels. Considering the fact that it controls approximately 40% of the Baltic Sea, the Swedish Coast Guard has a lot on its hands. “Our main responsibilities are to ensure a cleaner, safer and more sustainable environment at sea,” explains Åke Dagnevik, Newbuilding Director at the Swedish Coast Guard. “To do this, we perform a number of tasks mainly for the merchant fleet, but we also deal with private vessels, ensuring speed limits and alcohol limits are upheld. In short, we rescue, help and protect at sea, so we are involved in anything that happens along the Swedish coastline.”

Greater risks The Swedish Coast Guard is a civilian authority under the jurisdiction of the Ministry of Defence. Their overall goals are decided by the Swedish Parliament, while the government makes decisions on more detailed aspects. The Swedish Coast Guard started up in 1638, with two beach riders working to prevent smuggling and wrecks. Today the Coast Guard owns a fleet of modern vessels that patrol year-round. “The situation in the Baltic Sea has changed a lot over the years. After the fall of the Soviet Union, traffic increased, especially by Russian tankers since the Russians have increased their oil and gas business. The risk of oil spills and of other accidents has increased and Sweden has to take responsibility for its part of these waters. Consequently, the Swedish government decided to improve our fleet with larger vessels capable of handling larger situations,” explains Dagnevik.

New combination vessels

Torbjörn Lindholm - maintanance manager, Swedish Coast Guard Torgny Andersson - project manager, Swedish Coast Guard Åke Dagnevik - Newbuilding deirector, Swedisch Coast Guard Thomas Karlsson - maintanance engineer, Swedish Coast Guard Ståle Furuberg - sales manager, Kongsberg Maritime Stein Dahle - project manager, Kongsberg Maritime

As a result of this decision, the Coast Guard recently ordered the replacement of four of its older vessels with brand new, environmental ships, which will be built at the Peene Werft in Wolgast, Germany. The goal is to place one in each of the Coast Guard’s regions. The first of these four vessels is scheduled for delivery in April 2011, with the rest following at four month intervals. The entire delivery will be completed during 2012.

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These newbuildings are so-called combination vessels; in addition to environmental protection, they will be involved in all the regular tasks of the Coast Guard, such as sea traffic monitoring, border control, fishery and customs control at sea. They are advanced environmental protection vessels and can recover and store up to 250 m³ of oil in their own tanks. They are also equipped for sea rescue in all kinds of weather and have the possibility of fighting fires both at sea and in harbours. “Our existing vessels are already 30 years old, and are therefore not functioning optimally. The newbuildings will enable us to manage our tasks better by assisting in our daily operations along the coast, and undertaking environmental tasks. They are better and more modern and will generally have increased capabilities of cleaning up oil after a spill. They also have better and more modern equipment for surveillance,” explains Dagnevik. In addition to replacing four of the older vessels, the Coast Guard recently added three combination vessels to its fleet. Two of these were completed by May 2009, and the last one was completed in June this year. Like the prospective newbuildings, these too are capable of handling large volumes of oil, and are equipped with improved functionality for towing and fire-fighting at sea. Additionally, they are specially adapted for assisting in chemical spills, which is a new feature to the fleet.

Full Picture delivery Kongsberg Maritime was first chosen as a vendor for the three new vessels that have already been completed. This co-operation proved so successful that, when the Coast Guard looked for suppliers for its four scheduled newbuildings, Kongsberg Maritime was chosen once again. Both contracts include a wide variety of the products in Kongsberg Maritime’s extensive portfolio. “We are thrilled to have been chosen for this delivery. These vessels are highly advanced and among the best of their kind,” says sales manager in Kongsberg Maritime, Ståle Furuberg. “The Swedish Coast Guard is an important reference for us because its poses very strict technical demands on its equipment, especially with regards to the ability of sharing information across different systems. The Swedish Coast Guard has chosen an integrated solution that enables information exchange between the various systems onboard. This fits very well into our own philosophy of providing the Full Picture.” All seven vessels will include Kongsberg Maritime’s K-Bridge Integrated Bridge System.

This is designed specifically for easy operation to allow maximum time for observation and decision making, something that will greatly improve the working conditions for staff onboard. The vessels are also fitted with the K-Chief marine automation system for monitoring and control. “These modern systems monitor everything onboard the vessel. I know what it’s like to be on the bridge not knowing what to do. If we can get a system like this to remain stable, this will mean a lot for the comfort and working conditions of the crew,” says Dagnevik. The delivery from Kongsberg Maritime also covers a range of other systems, such as Dynamic Positioning to keep the vessels stable during the clean up of oil spills, cJoy joystick control system, Seatex DPS, K-Thrust thruster control, Mission Recorder, EM-3002D Multi-Beam Echo Sounder and MRU. “This is the first time that we have installed a fully integrated system. Experience has taught us that it is an advantage to use the same vendor for different systems. That way, you ensure efficient communication,” says Dagnevik. “We chose Kongsberg Maritime because it has a good reputation in the market, and has the funds necessary to invest in new technology. The company is also open to discussions regarding its solutions and our demands.”

highly efficient since they are located closer to the construction site. Consequently, they are likely to become part of the second contract as well,” says Ståle Furuberg. The Coast Guard is very pleased with this solution. “The commissioning engineers in Poland proved highly competent with good knowledge of the project, and they did an excellent job with our three newbuildings,” Dagnevik says.

“These modern systems monitor everything onboard the vessel.” Åke Dagnevik, Newbuilding Director, Swedish Coast Guard.

With three new vessels and four more scheduled for construction, the Swedish Coast Guard is well equipped to provide a safe environment along the Swedish coastline, and Dagnevik has great confidence in the new and modern facilities onboard the vessels. “With the introduction of such a large amount of new vessels, we phase out a great deal of problems, but we also get some new challenges, such as more modern electronics that will require a lot of training of our staff. However, we hope to meet these challenges so that we can keep these vessels operating for another 30 years.” ::

Multibeam A completely new feature for the Coast Guard on all seven of its new ships is the use of multibeam echo sounders. Kongsberg Maritime’s EM-3002D Multi-Beam Echo Sounder is installed onboard all of the newbuildings already in operation. “The use of multibeam echo sounders is a completely new concept for us,” says Dagnevik. “They will be a great help when searching for containers and oil and have already assisted in locating containers with poisonous gases, a task previously performed by divers and ROVs. With the new mutibeams from Kongsberg Maritime, we can perform these searches a lot more efficiently.”

Construction across borders The complexity of this Full Picture Delivery by Kongsberg Maritime has required the involvement of several diverse departments and locations. During the newbuilding project last year, the project management was run from Norway, while the commissioning was done by Kongsberg Martitime’s office in Poland. “Both of these deliveries involve many different parts of our company. The assistance from our Polish office for the delivery last year proved

Facts The Swedish Coast Guard works for: A cleaner sea - The Coast Guard is on permanent standby for environmental protection and prevents environmental crime at sea via environmental surveillance Increased safety at sea - The Coast Guard works to enhance people’s safety, is responsible for border control at sea and is on permanent standby for search and rescue. Sustainable future fishing - The Coast Guard monitors fisheries at sea During 2008, the Swedish Coast Guard’s operations included: • 35 oil response operations and one chemical response operation • 269 search and rescue missions • 315 oil spill observations that led to 166 preliminary investigations • 138 diving assignments • extensive national and international cooperation • contributing to limiting crime and increasing safety at sea

THEME New directions

Breaking Ground

:: The world of oil & gas production moves at an incredible pace. Technology and innovative thinking makes the industry dynamic, fluid and focused on overcoming challenges. The Gjøa project, which lies in North Sea blocks 35/9 and 36/7 – approx. 100 miles North West of Bergen – is the perfect example. The field, which has been developed by Statoil and will be operated by GDF SUEZ E&P Norge, was proven in 1989 and reserves are estimated to be 82 million barrels of oil and condensate and 40 billion cubic metres of gas. With its Vega satellite, Gjøa is the largest current North Sea development, so this combined with its location in a new area for oil & gas production means that the technical excellence employed to bring the project to fruition has been immense. The Gjøa field has been developed with a semi-submersible production platform and five sub-sea templates, and is expected to be online before the end of 2010. Three main contracts were awarded by Statoil in 2006 to build the 48

The Gjøa development shares its name with the first vessel to transit the North West passage. Like the Gjøa before it, the new Gjøa platform is breaking new ground – it opens a new sector of the North Sea to oil & gas production and is the first floating production platform to be completely powered from land…

technically advanced platform; Aker Solutions was given the task of producing the platform deck and the mating of the topside and hull. Leirvik Module Technology was contracted to build the living quarters whilst Samsung Heavy Industries in South Korea was chosen to build the hull. With the primary work underway, Statoil and Aker Solutions selected Kongsberg Maritime to provide a large package of systems, not least the Safety & Automation System (SAS), which, with over 40,000 I/Os is one of the most extensive of its kind ever installed.

Power Up As is common in newbuild oil & gas platforms, and indeed offshore vessels, the Gjøa platform is packed with sophisticated technology and innovations. Perhaps the most talked about is the fact that the platform is the first ever to be powered entirely by electricity from land, using a 100km power cable to a shore side transformer station at Mongstad, just North of Bergen.

Statoil believes that electrifying new installations on the Norwegian continental shelf is one of the most important measures to reduce further carbon emissions from Norwegian oil & gas production. Specifically for the Gjøa platform, it will mean a reduction in emissions to the environment of 250,000 tonnes of carbon dioxide per year (equivalent to the annual emissions from 100,000 cars per year) and with the electrification of the Troll A platform and Kollsnes also, Statoil is a front runner with a view to reducing emissions of nitrogen oxides and carbon dioxide. The power cable also houses fibres that are an intrinsic part of the Gjøa platform’s SAS network. Within the transformer station in Mongstad is an SAS console that provides safety monitoring, alarm and shutdown and can be remotely operated from onboard the platform. Should there be a problem that would require the power to be shutdown, for instance a fire in a critical area onboard, then the SAS can automatically or manually turn the power off at the transformer station without any

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personnel having to be present there. Although the likelihood of this happening is slim, an important part of the SAS aboard the platform is to ensure that every eventuality is prepared for. The direct connection to the power transformer station, although undoubtedly the longest leg, is only a small portion of the SAS network itself. A total of 190 cabinets, 102 real-time computers and about 50 operator stations have been tested, delivered, installed and commissioned by Kongsberg Maritime so far. Staggered delivery dates have led to 48 hardware and 60 software FATs (Factory Acceptance Test). The platform has a dedicated SAS Office which is currently manned by Kongsberg engineers and the system is controlled by GDF SUEZ operators in a sophisticated central control room. There are approximately 50 consoles located at various positions onboard, enabling authorised personnel to enter the system whilst away from the central control room or the SAS office.

Remote Control This in itself is an extensive SAS for any vessel or platform, but operator GDF SUEZ also had strong requirements to enable remote access to all of the data from the platform, so that it could support operations and maintenance from its centre in Stavanger and so that its suppliers, whom the company relies on to provide technical expertise can act without having to be onboard. For instance, it’s possible for Kongsberg engineers to sit in their own offices and do updates, diagnostics and follow up of the systems. “We want to move as much of the work as possible from offshore to onshore because it’s safer and cheaper. To do that we need all the data from the platform onshore, so we need quite a high bandwidth, which is why we run on fibre. We have many more signals than we had on older platforms because these days there is much more data available,” explains Årstein Bringsvor, Automation, Electrical and Telecom Team Leader for the Gjøa operation phase, GDF SUEZ. “Together with Kongsberg, we have tried to make a very segregated network so there is no possibility to endanger the SAS. The remote access is paying dividends, even before the field is online. Today for instance there is limited capacity onboard for beds and cabins whilst work is still being carried out. So what we are doing right now is having two Kongsberg people onboard doing maintenance and updated commissioning on the sub systems, whilst have we four Kongsberg people in Oslo doing remote work,” continues Årstein.

Third Party In addition to the SAS, Kongsberg also supplied and integrated a number of key third party systems and applications. In fact, 15 major sub suppliers have made important contributions to the project. Kongsberg introduced a large screen display based on IFE ‘Dull screen’ concept and have integrated the Emerson AMS with the SAS. The project has been the first to take into use the new PROFISafe communication, the new earth fault detection system, the new internode signaling concept and the TUV approval of IEC 61508 for AIM 8.3 all delivered from Kongsberg Maritime’s R&D department and mandatory to fulfill the contract obligations. “One innovation was to introduce the Emerson Management System to the equation. The AMS can get a lot of information from valves and transmitters so rather than going out with a handheld HART communicator you can do remote diagnostics and enable automatic diagnostics,” says Årstein. “Instead of just adding it to the top of the SAS, Kongsberg did a lot of work in routing the traffic through the network. We can now use it within the SAS but in a safe fashion, which will be a great operational benefit when we go online.” “We have quite a lot of condition monitoring systems too. They are third party products but several of them have been supplied, implemented and configured by Kongsberg. Together we have set up availability of information from these subsystems. For instance Turbo Watch, a condition monitoring system delivered through Kongsberg actually gets a lot of input from the SAS system, which is only possible because we made a specific effort to ensure that the data was available.”

Embracing Change Roald Amundsen’s Gjøa spent the first 28 year’s of its life as a herring fishing vessel. The famous explorer spent the majority of his inheritance to buy her from the original owner and following a training expedition from Tromsø through the Barents sea in 1901, he realised that she would need to change for the purposes of transiting the North West Passage. Although adding a 13hp paraffin engine and upgrading her ice sheathing may seem trivial in comparison, the attitude to change that Amundsen and his team showed, reflects that of the teams from Statoil, Aker, GDF SUEZ and Kongsberg Maritime during production of the modern day Gjøa. The original concept for the SAS aboard the Gjøa platform was that it would be based on the successful design of Statoil’s Kristin platform,

which was already in operation. As development of the Gjøa platform and its systems progressed though, a different path was forged, which tested the teams’ ability to deal with change on several levels. “Kongsberg was always able to fulfill our requests for changes to the original plans as the project progressed,” says Johannes Haga, SAS lead, Statoil. “There are several Kongsberg people integrated in the Statoil commissioning team. The personnel have been very good and we have experienced good co-operation between us, and also with the people at HQ in Kongsberg.”

Årstein adds: “From my point of view we have had very good co-operation. I really like the attitude of Kongsberg. They try to solve problems and not get bogged down in too much discussion and this is the general feeling I get from other members of the project.” According to Arnt Ole Lia, Sr. Project Manager, Kongsberg Maritime, when considering the extent of the solution supplied by Kongsberg it’s easy to understand how everyone involved in the project needed to stay fluid, cooperative and to work with flexibility. “The Gjøa project has come through several challenges and changes throughout the last 3 ½ year’s. Thanks to competent, flexible project participants willing to complete their tasks even though from time to time it influenced their private life more than it is natural to expect from them, the Gjøa platform will go online with a SAS that has been changed and improved over that of the original vision. We couldn’t have addressed all the changes without the good attitude of Statoil, GDF SUEZ and Aker Solutions, and indeed without the excellent assistance and cooperation from the Kongsberg R&D and Product departments at crucial phases of the project.” :: 49

THEME New directions

Integrated Reality

The full picture goes full circle when we apply our simulation and training solutions to our real-life ship systems. Take for instance the integration of the hi-fidelity KONGSBERG Offshore Vessel Simulator with the cutting-edge K-Master aft bridge workstationâ&#x20AC;Ś :: At ONS 2010 Kongsberg Maritime presented the latest version of the K-Master aft bridge workstation in combination with the sophisticated and unique Kongsberg Offshore Vessel Simulator, configured for anchor handling operations training. This setup shows not only the extensive and varied capabilities of K-Master in a realistic offshore environment, but is a particularly impressive demonstration of how the workstation can contribute to bringing vital anchor handling simulation closer to real life, therefore enabling safer and more efficient offshore operationsâ&#x20AC;Ś

Seated in Reality The K-Master aft bridge workstation was launched at Nor-Shipping 2009. As the first system of its kind it garnered a huge amount of attention and feedback to the concept was unanimously 50

positive. K-Master provides unique access to all major control systems within easy reach of the seated operator and ensures complete situational awareness for intuitive navigation, control and manoeuvring for critical offshore operations such as anchor handling. It consolidates the traditional bridge consoles into literally a single operator chair, which houses integrated multiple computer consoles in its armrests. Total ship operation takes place from this chair, with the main information displays close to the seated operator to ensure that all critical data is viewable. This is a vital safety development, especially due to the intense nature of ship operation, especially anchor handling on the aft bridge. K-Master can include a wide variety of sub-systems, including Dynamic Positioning, independent DP joystick, thruster control,

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machinery automation and cargo control, chart radar and conning display, and bridge auxiliaries. The sheer breadth of functionality at the fingertips of the operator is astounding, and its design ensures that each and every sub-system can be operated safely and efficiently. At ONS 2010, a brand new twin K-Master configuration was introduced. It demonstrates a complete anchor handling vessel aft bridge, arranged in compliance with the DNV NAUT-OSV class notation. With one workstation for ship handling and one for aft support/winch operation, two operators can experience the challenges of cooperation in a demanding operational scenario – a scenario generated, controlled and visualized by the Kongsberg Offshore Vessel Simulator. The K-Master for ship handling is equipped with DP control functions as well as levers for manual control of thrusters and propulsion, together with an independent DP backup joystick system. In addition there is access to navigation displays and machinery automation displays. It is also possible to monitor status information from the anchor handling winch system on this station. Similarly, the K-Master station for winch control is equipped with dedicated panels for remote control of shark jaws and guide pins, along with levers and software panels for bridge control and monitoring of the anchor handling winch system. CCTV camera selection for presentation on overhead CCTV displays makes it possible to observe parts of the winch system that can not otherwise be observed from the bridge. The systems controlled from the workstation for ship handling can also be monitored from the winch control station, and it is possible to activate the joystick manoeuvring back-up mode for situations where the ship handling operator is unavailable to continue his task. Both workstations have software controls for remote control of bridge auxiliary equipment such as deck lights and window wipers/ washers.

Simulation Demonstration

The vessel represented in the K-Master/Offshore Vessel Simulator configuration at ONS 2010 was a common anchor handler hull equipped with twin bow tunnel thrusters, twin aft tunnel thrusters, twin propulsion engines with shaft generators and twin rudders in addition to auxiliary engines for additional power generation. The deck equipment is two sets of shark jaws with guide pins and one set of stop pins. The winch system is an assembly with one anchor handling winch and two smaller winches powered via a clutch system from in total, four electric motors. An overview of the demonstration set up at ONS 2010 is shown below. The workstation for ship handling is on the right, winch handling to the left. K-Master applications controlled/simulated from the Anchor Handling Workstation include: •Winch clutch system remote control and monitoring •Winch status monitoring

•Winch motor and drum remote control and monitoring •K-Pos (DP) backup •Deck equipment remote control for shark jaws, guide pins and stop pins K-Master applications controlled/simulated from Ship Handling Workstation: •K-Pos (DP) •K-Chief (Automation) •K-Thrust (Thruster Control) •K-Bridge (Conning) •K-Bridge (Chart Radar) •DP Position reference systems (DGPS, HiPAP, RADius) •Radio systems •Window Wipers •Window Washers •Deck lights •Search lights

A Natural Edge Realism is the fundamental goal in the development of any simulation project, because the closer to reallife a simulator is, the better the training experience is for the student. As Kongsberg Maritime is leading the way in the development of real-life systems, we have a natural edge in developing realistic simulators. We have a wide range of reallife ship equipment, we know the applications and operations, and our simulation department possesses extensive expertise when it comes to modelling and visualising the environment and the physical behaviour of vessel and equipment. 51

THEME New directions

“With K-Master and the new Offshore Vessel Simulator, we cover all aspects of offshore aft bridge simulation,” comments Søren Einar Veierland, Business Manager, Kongsberg Maritime – Simulation & Training Department. “We can provide high quality simulation for anchor handling and winch control, dynamic positioning with K-Pos, power management, in addition to navigation and forthcoming K-Master functionalities such as cargo transfer and ballast control. Essentially, by integrating our offshore vessel simulator with K-Master, we are providing a complete offshore vessel simulator in an environment that is identical to the vessel in real-life.”

“Physically replicating a vessel’s navigation and automation systems in a training facility on dry land is a fine art.” - Terje Heierstad This is what makes this development so important for the offshore industry. The need for personnel training in the offshore sector today is significant. Simulation for training, procedures, mission planning, decision support and crises and accidents represent the needs of the industry and are therefore integrated parts of the simulator training that we develop and deploy successfully. Due to escalating costs, many possible risks and difficult access to offshore marine assets for ‘live’ training with real equipment in real environments, simulation under realistic circumstances is a safer and more cost-efficient training solution. And the Kongsberg Offshore Vessel Simulator integrated with K-Master is about as realistic as it gets.

The Sharp End The Offshore Vessel Simulator can provide training across a wide range of offshore operations, either as a custom solution specific to each facility or based on the K-Master workstation. In order to create a realistic anchor handling exercise, the simulator needs to simultaneously represent a number of critical systems most of which interact with each other, and which are controlled from the K-Master workstations exactly as during real-life operations. This means that interfaces between K-Master’s various applications and the simulation are implemented across all functions. 52

Offshore Vessel Simulator Instructor Station

The demonstration system at ONS 2010 also featured a powerful, flexible instructor station designed to enhance the quality of simulation training by providing complete, intuitive and userfriendly control of student exercises. It enables the instructor to develop customised exercise modules for individuals, teams or a combination of both, with fully controllable areas such as: • Initial Condition – define all the variables at the start of the exercise (ship model, exercise area, targets, equipment on deck, etc) • Student Station Configuration – define what information is accessible and visible to students • Actions – derived from input variables and malfunctions, which can be initiated instantaneously, or preprogrammed as part of

The simulation is controlled from a powerful instructor station which is equally essential when planning and executing exercises of a training program. The scenario comes to life through an extensive visual system generating a realistic ‘out of the window’ view from the bridge. The simulated vessels all react and behave in the same way that they would at sea. Equipment can be controlled exactly as it would be onboard. The environment, from the geographical accuracy of the exercise areas through to the hydrodynamic modelling of the water is all state-of-the-art. And all of this can be viewed in real-time, in hires with incredible detail. The integration of K-Master into the Offshore Vessel Simulator has been a combined effort between personnel in the Kongsberg Maritime simulation and offshore departments, all

the exercise. E.g. engine breakdown, loose or stuck wire in the winch etc • Underwater view – realistic behaviour of the chain and anchor below the water to monitor the student’s performance • Men on deck control – control movement and actions of vessel deck crew • Crane operation control – role of crane operator on drilling rig or onboard vessel, including communication with the bridge • Rig winch operators – role of the winch operator on the drilling rig • Tow master – role of the tow master on the drilling rig • Assessment – monitor and assess alarms, and any of the variables in the simulation.

determined to achieve the highest level of realism in the end product. “The results of this co-operation are very impressive,” says Veierland. “Trainees can experience first hand exactly what it is like to be at the sharp end of offshore vessel operation using the K-Master workstation. Separately, K-Master offers enhanced offshore operations whilst the Offshore Vessel Simulator ensures that personnel can carry out their jobs safely and with competence. Together, K-Master and the Offshore Vessel Simulator represent a high performance training solution to meet the demands of the offshore industry for cost effective, high quality simulation,” concludes Søren. ::

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New Company in Dubai

In order to meet increasing market demands in the Middle East, Kongsberg Maritime recently established Kongsberg Maritime Middle East DMCCO in Dubai. For customers, this means a number of improvements and benefits, including lower service costs and shorter delivery times.

:: The thriving LNG and offshore industry in the Middle East region has resulted in new contracts for suppliers world wide. For Kongsberg Maritime, this is no different. A recent integrated system delivery to 18 of Qatargas’ new LNG vessels is one example of the growing need for support on Kongsberg Maritime products in this region and with the newly established Kongsberg Maritime Middle East DMCOO, Kongsberg Maritime is well prepared for the challenges ahead. “There are many opportunities in this region, especially within products related to LNG, but also within the offshore industry. We have a considerable position as a supplier to the merchant fleet, and our goal is to build a strong office that can provide support and service for all KM products to the entire Middle East region,” says the new General Manager for DMCOO in Dubai, Halvard Sagdahl. “The fact that we are now present with our own staff in Dubai will be a great advantage to our customers. They will no longer need to wait for expertise from the head office or any of our other locations world wide because that expertise is situated right here in Dubai.”

Building local competence The new company was officially opened in June this year and is a Dubai Maritime City Freezone company, with offices in Falcon House, Dubai In-

vestment Park. In order to get the office up and running in time, local staff received extensive training by instructors from Kongsberg Maritime’s head office. The purpose of this is to ensure a highly competent group of local staff that can support vessels and yards in the Gulf Cooperation Council (GCC) region. As a result, the company currently has nearly thirty employees dedicated to the support of all products provided by Kongsberg Maritime, including advanced automation systems, alarm and monitoring systems, machinery control systems, dynamic positioning systems, navigation systems and hydro acoustic control systems including underwater navigation and seabed mapping systems.

A well established player The new company will take orders for service and systems aboard all kinds of vessels, such as offshore vessels, merchant ships including LNG (Liquid Natural Gas) tankers and other specialized vessels operating in the GCC. It will also handle a wide variety of projects at shipyards for project engineering, installation, commissioning and sea trials. In short; their staff will have the qualifications needed to provide the same high levels of service and support that was previously provided from Kongsberg Maritime HQ or other global offices. Vice President Global Customer Support, Geir

Håøy, sees the expansion in the Middle East as a natural addition to Kongsberg Maritime’s global network of Customer Support: “We are already a well established player in the Middle East since the mid 1970’s. Our new company in Dubai has been set up to be closer to the customers in this busy and growing market. It is an integrated part of our global customer support network and will further improve both our presence and support to shipowners and yards in this region and world wide.”

Joint venture The new company is a joint venture and part owned by long term Kongsberg Maritime partner in the Middle East, Unique Systems. For several years, Unique Systems has been the sales and service agent for all Kongsberg Maritime products in the Middle East, which has contributed to the establishment of Kongsberg Maritime in this region’s market over several years. Kongsberg Maritime will maintain the close co-operation with Unique Systems, and they will continue as the sales agent in Middle East for products provided by Kongsberg Maritime. “Unique Systems has done a very good job for us for many years and we look forward to continuing this working relationship in order to gain new market shares in the Middle East region,” says Sagdahl. :: 53

THEME New directions

World Wide Expansion of Customer Support Kongsberg Maritime is expanding its customer support offering world wide. The newly opened Kongsberg Maritime Middle East DMCCO in Dubai and improved facilities in Brazil and the Gulf of Mexico will bring Kongsberg Maritime even closer to the customer.

:: With offices in 22 countries, Kongsberg Maritime already has a strong team of 470 customer support staff at their facilities in Norway, Singapore, Brazil and the USA. To meet the growing demands, the already thriving Customer Support operations in Rio de Janeiro and New Orleans will both be strengthened with new staff. In addition, the newly established Kongsberg Maritime Middle East DMCCO in Dubai will provide support to the entire Middle East region. Executive Vice President for Customer Support, Geir Håøy, hopes that this expansion will provide even more efficient Customer Support. “The expansions in Rio and New Orleans are based on increasing demands in the market,” comments Håøy. “Our Customer Support strategy in these key markets is to continue to grow our local organisation with the right competence and to be closer to our customers. In addition we have our pool of international resources available that can assist in periods of excessively high demand. Kongsberg Maritime has grown considerably in recent years, accordingly we are committed to 54

utilising all our available resources worldwide to serve our customers.”

Potential in the Gulf of Mexico In the Gulf of Mexico, which is currently attended by a 50 strong Customer Support office in New Orleans, there are approximately 90 rigs in operation. This makes an expanded Customer Support function a high priority for Kongsberg Maritime. The office covers the product areas of DP, reference systems, offshore automation, merchant automation and process control. “Our goal is to complete as much as possible of the service for this region locally, thus saving the client the delays of having to wait for qualified help from our head office in Norway. Our office in New Orleans has both qualified first line engineers who can perform hardware support, and systems engineers who can assist with more complex tasks,” says Bent Erik Bjørkli, Regional Manager Customer Support, North America, Kongsberg Maritime Inc, New Orleans.

Expansion in Brazil Since 1997, the number of vessels based in Brazil with Kongsberg Maritime systems onboard has more than trebled and is likely to reach three to four hundred by 2012. The offshore oil & gas platform segment is also growing rapidly in the region, with approximately 24 present and 7 more rigs expected to come into operation in Brazilian waters during 2010. The Rio office is also responsible for providing Customer Support in other South American countries. The Customer support expansion at the Rio office is ongoing, and the team will be strengthened by five local technicians and two experienced international technicians within two months, giving a total of 23 employees on the operational side. The team in Rio is experienced in service & support across a wide range of Kongsberg Maritime products and systems, including; all Dynamic Positioning hardware and software, reference systems and sensors and also the majority of Automation and Merchant systems. ::

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New Training Centre in Singapore Kongsberg Maritime officially opened an upgraded training centre in Singapore in March.

:: The upgrade of the well-used training facility in SIngapore saw it being moved to the former workshop and factory acceptance test area at the site. The centre now includes an extra training room (NAV Training Room) and training lab in addition to improved recreation and ICT for students. According to Training Manager Siow Choon Meng, the additional facilities will enable a number of new courses to be offered at the training centre: “With the new classroom and laboratory, we can now conduct courses such as

the HiPAP Technical as well as PowerSim.” Wong Kok Fai, who is a Senior Instructor specializing in K-Bridge courses is also looking forward to being able to provide a complete navigation course using the facilities: “We are expecting the delivery of the K-Bridge and K-Chief simulators, and classroom computers soon. When they arrive, we will have full training facilities for navigation in Singapore.” In 2009, a total of 265 participants attended courses at the training centre in Singapore and with the new centre and equipment the team is

confident that this number will increase in 2010. A total of 9 classes have been conducted in the new training centre since the completion of the improvements late 2009. Kongsberg Maritime Singapore can not only offer more courses at the new training centre but also a more comfortable and conducive learning environment. Students and customers are now presented with ample room to relax between classes in the café area and surf the web at a new surfing station. ::

THEME New directions

A chance to dream

Karanba’s the name of a social project designed to use football to give young Brazilians in tough circumstances a chance to succeed. And the Kongsberg-backed team Karanba recently marched to victory across Scandinavia! :: Some 40+ young men from some of the least fortunate parts of Brazil came to Europe in July with a dream. They return one month later with gold. The Karanba project was started in Brazil in 2006 by Tommy Nilsen, who – with the help of supporters like Kongsberg Maritime – designed a project using football to give poor youngsters from Rio de Janeiro a leg up in life. Today Karanba is

giving dozens of young men greater opportunities and hope. Team Karanba are winners in many respects. First of all, these are young men born into poverty in Brazil and given little chance to better their condition. Through the project called Karanba, they get coaching and guidance to reach for something different; football’s just the vehicle. And they have been crowned champions of

European youth soccer this summer, after winning two huge youth football tournaments (Norway Cup and Gothia Cup) and losing the final of a third in penalty kicks (Dana Cup). We congratulate Karanba on their success in Europe this summer, and back them further as they generate momentum for progress and development. :: www.karanba.com

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Global support World-wide main contact Call +47 815 35 355 km.support@kongsberg.com

Regional Support Centres 24h Europe, Africa & Middle East (Norway) Kongsberg Maritime AS 24h Hotline: +47 815 35 355 km.support@kongsberg.com

North America (Louisiana) Kongsberg Maritime Inc. 24h Hotline: +1 504 234 3934 km.support.neworleans@kongsberg.com

South America (Brazil) Kongsberg Maritime do Brazil 24h Hotline: +55 21 9965 5170 km.support.rio@kongsberg.com

Far East & Oceania (Singapore) Kongsberg Maritime Pte. Ltd. 24h Hotline: +65 9862 2881 km.support.singapore@kongsberg.com

Expo

Rio Oil & Gas www.riooilegas.com.br Sept. 13-16

UUVS www.uuvs.net Sept. 21-22

Euronaval 2010 www.euronaval.fr Oct. 25-29

OSEA www.oilpubs.com/oso Nov. 30 - Dec. 3

Kongsberg Maritime Simulator Agent Conference www.kongsberg.com Sept. 21

Kongsberg Maritime Simulator User Conference www.kongsberg.com Sept. 22-24

Hydro 2010 www.hydro2010.com Nov. 2-5

Workboat Show www.workboatshow.com Dec. 1-3

Kongsberg Maritime Simulator Armed Services Brief www.kongsberg.com Sept. 21

Monaco Yacht Show www.monacoyachtshow.com Sept. 22-24

MAST www.mastconfex.com Nov. 9-11

FEMME 2011 April 12-15

Kongsberg Maritime AUV Conference www.kongsberg.com Oct. 4-8

Subsea Survey www.subseasurvey.com Nov. 9-11

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