Dockwiser January 2009

IDOCKWISER No 4, 1st quarter 2009 www.dockwise.com

The New Course 22

Managing the modular future 26

Engineering

ODL: Ocean Dynamics expertise 28

DOCKSHOT!

Tower Power After a successful load-out that took just three hours, the Black Marlin set sail from the DAEWOO yard in Okpo, South Korea, on October 27, 2008. The deck cargo consisted of two massive topside modules intended for the Tombua Landana Compliant Tower Project, to be undertaken by the Cabinda Gulf Oil Company Ltd. off the coast of Angola. The most remarkable element of this journey was that Dockwise, market leader in the transport of extremely large and heavy cargo, was involved in the transport of a compliant tower for the third time in a row.

So far, there are just four compliant tower installations in use worldwide.

Page 2 DOCKWISER

DOCKWISER Page 3

CONTENTS

Core values

FROM THE CEO

Part 3: Passion

BRAZIL’S OIL BATTLE

11

Passion to Achieve the Inconceivable

The discovery of vast fields of crude oil beneath ‘ultra-deep’ waters off the South American coast could turn the international oil industry upside down.

It could also drain the world’s capacity in rigs and other equipment.

Financial Times correspondent Jonathan Wheatley drills into the matter.

12

MANAGING THE MODULAR FUTURE When it comes to large industrial projects, modularity is key – and smart logistics are vital for profitability. Professor Kees Ruijgrok explains.

THE NEW COURSE

Dockwise is now offering full service logistics for complex onshore and offshore projects. Chief Commercial Officer Martin Adler discusses the all-important details.

22

26

Dockwise’s passion to become a full-service transport and installation provider has set sail. With the recent implementation of the SAP system, we are realizing our strategy to evolve into a project-oriented company able to synergize disciplines to fully engineer, transport and install offshore and onshore structures. With the changing pace of the oil and gas industry, Dockwise is keen on continuing to grow as a global player in this highly specialized market.

In early 2009 we will open offices in Brazil and Singapore, which will give our customers in South America and South Asia direct continental contact and support. The expansion of our fleet with the addition of six new vessels and the reinstatement of the Mighty Servant 3 also strengthens our array of services.

For Dockwise this is a new era driven by passionate innovation and reliability. In fact, we are characterized by passionate employees who are professional and dedicated to helping drive our vision forward. It is their clear focus that is enabling Dockwise to realize its strategy to offer total transport and installation management of large modules while reducing costs, complexities, risks and environmental impacts.

In the current turbulent periods, Dockwise continues to maintain a steady course as a leader in the heavy lift business by delivering efficient and creative solutions to all of our customers. Above all, we value safe operations of the fleet and all individuals involved.

André Goedée Chief Executive Officer

Editorial 5 Docknews 6 ODL: THE ADDED VALUE OF OCEAN DYNAMICS EXPERTISE 28 CAPTAIN’S LOG 42 NEXT ISSUE 43

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CONSIDER IT DONE! 38

A behind-the-scenes look at two of Dockwise’s challenging and exciting projects – Vyborg

and Exmar Opti-Ex. DOCKWISER Page 5

docknews Safe in the arms of

OCTOPUS

vessel with its long tentacles.

An octopus embracing both cargo and r Marine Engineer Onno Senio wise Dock ble?

Is such a thing possi d it with the semiPeters knows it is. He recently experience et!

Targ submersible vessel

Record Depth Perdido Truss Spar

Following a smoo th Atlantic crossin g, the vessel Mighty Serv ant 1 safely delivere semi-submersible d to Ingleside, Texa s on June 27, 2008 the Perdido Truss Spar . Operator Shell in use this sparbuoy to pr tends to the Gulf of Mexico oduce oil and gas from deepwater fields in , at a record water depth of 2,380 me ters.

The Perd ido Tr uss Spar wa s bu ilt at the Techni Pori, Finland. p ya rd in The 173.3 mete r sparbuoy weigh ton. Dockw ise s 20,956 wa s contracted on June 1, 20 06 Technip Offsho by re Inc. for the sa fe execution of of the delivery. O all aspects n May 19, 2008 the sparbuoy wa over the stern on s skidded board the Migh ty Servant 1. Af fastening, the ve ter seassel sta rted its At lan tic crossing to Gulf of Mexico the and the sparbuo y was unloaded float-of f method using the .

Dockw ise is un derta king this project in the Al Ca nyon block aminos 857, together wi th pa rtners Ch BP and Operat evron, or Shell. One rem arkable feature entire project is of the that the bounda ries of the deve of deepwater op lopment erations are bein g further expa nd The Perd ido Tr ed. uss Spar will be anchored in th Mex ico in water e Gu lf of with a record de pt h of 2,380 m of the three fie eters. One lds to which th e sparbuoy will is in fact 2,925 be connected meters under wa ter.

the Marine Depa rtment, the Following thorough preparation by support and motion monitorfirst OCTOPUS onboard decision on board the Dock wise 2008 May in ing system was insta lled nced decision support Target. Peters said: “This is an adva floating structures other and ls vesse of system for operation in waves. to provide all of the The daily function of the system is in to plan a safe voya ge. capta the to on mati infor rtant impo system pred icts the the asts, forec her Based on SPOS weat acceleration at the cargo motion responses like roll, pitch and . These findings are days few next the centre of gravity for the voya ge, as provided by then compared with limits set for ts limits – ensuring the prese on mati Engineering. This infor can decide in good time safet y of the cargo – so the capta in l’s speed.” vesse the t adjus to change course or to collects a whole range of key m syste ard onbo S OPU OCT The vessel. This information is data, including the position of the ling the Operations and sent to a central database server enab itor the precise journey. mon tely remo to nts Engineering departme keep the client informed on The collated data are also used to ate the entire trip after the evalu to and a daily basis of progress event.

Keep the client up to date

recei ve a fully integ rated The Targ et was the first vesse l to ly before the vessel was short m, syste ard onbo S OPU OCT rig Offsh ore Resol ute from prepared to tran spor t the jack-up in Vietnam. During the Tau Vung to , USA s, Texa Ingleside, on was collected, especially mati infor ble trip, a great deal of valua Hope and passing the island when rounding the Cape of Good these critic al passa ges, out ough “Thr of Mad agas car. Peter s: sely up to date every day, we were able to keep the client preci From the start of 2009 ed. eciat appr ly a service that was great vessels will be equipped with our of more seven least at rds, onwa a similar measuring system.”

Safety from all equipped vessels, Peters said: “With the data gathered ate our engineering.” evalu to hand at valuable information is be improved by comparing Knowledge about safety margins can was pred icted beforehand. what to red what vessels have encounte clients, because they can use the This information is valuable for property. So, it is evident their of t smen data for life-c ycle asses protecting both vessel and that OCTOPUS is embracing and all parties involved. ng senti repre cargo, with its tentacles

Page 6 DOCKWISER

Dockwise.com

complete

make-over

ergone a complete The Dockwise website has und om (click on Dockwise se.c kwi .doc www make-over. At erience some of the exp Shipping) visitors can visually kwise’s solid Doc ort supp that ects exceptional proj r overview of clea a s reputation. The website give show s many and ices serv our of tion actual informa video ular ctac Spe pictures of projects executed. r unique offe ns atio anim and ges ima footage, photo ts that spor tran ng dari e insights into some of the mor will be and past the in ully essf succ d were manage website, it is also managed in the future. Via our panies in the Dockwise com r othe the ss possible to acce , Ocean Dynamics LLC Inc. group: Offshore Kinematics keep visitors To t. spor Tran t Yach and Dockwise also the possibility is e ther informed about Dockwise, s releases. Please pres st late ive rece to of a subscription Dockwise the on click visit www.dockwise.com and logo!

All Together Now Dockwise USA, OKI and ODL move to Park

Ten

Dockwise USA, Offshore Kinemat ics (OKI), and Ocean Dynamics Offshore Engineering (ODL), all part of the Dockwise, Ltd. group, will be mov ing into the same building at the Park Ten location in Houston, Texas on April 1, 2009. This move has bee n initiated to enhance synergies between the differen t areas of expertise existing within each group.

Dockwise USA’s President, Rob b Erickson, said, “Park Ten is located along Houston’s energy corridor where all of the big oil and gas players are positioned.” Park Ten is also in close proximity to employee residences, which makes this area of the city a prime location for the three branches to unite.

Erickson pointed out that, “The 20,000 sq ft office space will give us plenty of room to grow. We’re working with a local architect on an innovative configuration where the cubical spaces will face outside toward the windows and the executive offices will be located on the inside. We are also goin g to mimic the reception area from Dockwise commer cial headquarters in Breda.”

The biggest challenges in bringing these three Dockwise Ltd. families together will be culturally integrating the various global perspective s and synchronizing the different organizations to the Dockwise tune.

DOCKWISER Page 7

docknews Trade Show Calendar 2009 (first half year)

Treasure joins fleet

Valuable addition

logy) International DOT (Deep Off shore Techno Conference & Exhibition New Orleans, LA, US February 3-5, 2009 ww w.dotinternational.net ) exhibition & conference AOG (Australasian Oil & Gas ibition Centre), Australia Per th (Perth Convention Exh February 17-19, 2009 ww w.aogexpo.com.au CIOOE/CIPPE Beijing, China March 19-21, 2009 ww w.cippe.com.cn ww w.ciooe.com.cn

to transport flee

t

After successfully co pleting submerging tests and sea trials, m th recently delivered to e vessel Treasure was the fourth vessel fromits new owners. This is verted from single hu a series of six consubmersible heavy-lif ll tankers into semit vessels.

Inte rnationa l Oil & Gas Indu

stry Exh ibiti on & Confere nce (OSEA ), Sing apo re, Dece mbe r 200 8

Giant, Semi-submersible

Mighty Servaresntortati3on

ference) OTC (Of fshore Technology Con USA as, Tex k), Par t Houston (Relian 9 200 , May 4-7 ww w.otcnet.org/2009/

completes her final stages of

ible vessel Mighty Servant 3, The impressive semi-submers is nts in the Dockwise fleet, one of the undisputed gia nd Gra the at se pha tement completing her final reinsta in rejo to ed ect exp is She rt.

Bahama Shipyard in Freepo 9, 200 the first quarter the Dockwise fleet during orting the world’s largest nsp tra for ed perfec tly equipp and heaviest cargoes.

Exhibition APPEA 2009 Conference and ia tral Aus , Dar win May 31-June 3, 2009 ww w.appea2009.com.au Petrochemical OGA 2009 (Asian Oil, Gas & Engineering Exhibition) tion Centre), Malaysia Kuala Lumpur (KLCC Conven June 10-12, 2009 ww w.oilandgas-asia.com

Deep Of fsh ore Techn olo gy (D OT ) Co nfe ren ce, Pe rth , Decem be r 2008

Like the previous thr ee, the Transporter (May 2007), the Target (Decemb er 2007) and the Ta lisman (May 2008), the Treasure was delivered entir ely on schedule.

“These vessels have a carrying capacity in excess of 35,000 ton and are designed to transp ort complex cargoes like semi-s ubmersible and jac k-up drilling rigs.”

The Treasure was co nverted at the CO SCO shipyard at Zhoushan, China.

During the convers ion process, the entire midship sec tion was replaced an d machinery and equipment fully rev ised or replaced. Th e unobstructed deck area measures 44.5 by 130 meter s.

To ensure the most effective operating method for the Treasure, Dock wise has appointed Anglo -Eastern Ship Management to pro vide technical and crew support.

With the addition of six more vessels, Dock wise can optimize strategic deployment of its 22 -vessel fleet to best ser ve the va rious markets. More specifically, Dock wise will be in a position to provid e clients with unparalleled flexib ilit y, offering many different types of vessels, reducing risks and increasin g scheduling and contracting op portunities.

Brasil Off shore Macaé, Rio de Janeiro, Brazil June 16-19, 2009 ww w.brasilof fshore.com 9 al Oil & Gas Exhibition) 200 MIOGE (Moscow Internation sia Rus a), sny Pre ya sna Moscow (Expocentre on Kra June 23-26, 2009 ww w.mioge.com/2009/

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DOCKWISER Page 9

docknews

core valueS

PASSION

Rosebud Racing on fire

sets sail racing world e Farr-designed The lightweight, high performanc ing/Team DYT Rac d ebu Ros yacht Rosebud of the world in 2009. is ready to rock the yacht racing to the other are nt The safe transfers from one eve ise Yacht Transarranged by team partner Dockw port (DYT). dule for 2009 are events on difOn the Rosebud ’s racing sche een January 14 and August 9, Betw . ntic Atla ferent sides of the from Florida, Jamaica and St. s the team will participate in race . Rosebud Racing/Team pton tham Sou and es Maarten to Cow ’s prized, lightweight team the DYT uses DYT services to ship ere is no better way “Th ld. wor the nd arou ts race vessel to even Dockwise Yacht g usin than es of arriving at far-off race venu staff of service ent nific mag a has y pan Transport. The com duling and, more sche with help managers and load masters to t of our yacht,” says Rosebud importa ntly, the safe transpor Lauderdale, Florida. owner Roger Sturgeon of Fort Devoted is the perfect ambassador for our “Rosebud Racing/Team DYT getting race boats to regattas persona lized service devoted to ens van der Werf, DYT Clem ains expl ld,” all around the wor DYT Team liver y, has new ing President. Rosebud , with its strik s role in various spectacular sailalready fulfilled its ambassador’ ing races around the world.

For the complete schedule see ww

w.rosebudracing.com

Milestone Assignments: V yborg and Koniambo Two major new projects will commence shortly, involving super sized cargoes and extreme conditions.

Still, they fit surprisingly well into the Dockwise strategy of offering full service logistics .

First in line is the Vyborg Assignment. The Vyborg Shipya rd was com missioned by Gaz flot (the operating arm of Gaz prom) to construct two platforms designed for ope ration in the arctic conditions of the giant new Shtokman fields, 325 nautica l mile offshore Mu rma nsk . André Goedée, CEO of Dockw ise Ltd., comments: “The Vyborg / Shtokman contract is a mil estone in Dockw ise history. It demonstrates our primacy in handling extreme challenges: scale, distance and climactic conditions.” The first top side structure is schedu led to be loaded at the end of April 2010.

(Want to read more on the Vyborg project? See page 40) .

Second is the new Koniam bo contract.

Dockwise has bee n ask ed to exe cut e the tran sportat ion of 18 ons hore modules including an extended eng ineering and associated services scope from China to New Caledonia. This logistical management contract was awarded by Hatch-T echnip on behalf of Koniambo Nickle SAS, a joint venture owned

by Xstrata Nickle and Soc iété Minière du Sud Pacifique (“SMSP”). Hat ch-Technip, based in Kua la Lumpur, Ma laysia, has been appointed as main contractor. The transportation of the modules will start in Qingdao, China and will end in Vavouto, New Caledonia. First shipments are schedu led for late 2009.

Page 10 DOCKWISER

Danielle Biermans

Media & Promotion Manager (34)

Motto: ‘Life is a journey, not a destination’ “I am passionate about managing and organizing Dockwise sponsored events like trade shows, internal staff association gatherings, external B2B communications and strengthening the Dockwise brand to generate free publicity.” Danielle is also keen to use her diplomatic magic in meetings with people from all over the world to create a positive awareness and identity for Dockwise in the oil & gas industry, as well as other industries.

Danielle joined Dockwise in 2003, so she has gained a certain amount of tacit knowledge about the company and the different disciplines. When asked about her work she smiles and says, “Because of Dockwise my world view is larger. I am proud to work for a market leader and to work for a company that challenges everyone to be excellent.”

According to Danielle, it is important to be the best and make a difference. “Even if the way forward is unclear, we must still build the bridges to reach what lies ahead.”

DOCKWISER Page 11

DOSSIER BRAZIL

Ambitious exploration plans put pressure on oil industry’s current installed rig capacity

Newly discovered oil and gas fields promise to propel Brazil into the big league of oil-producing nations. But wrangling over regulations, local content rules and a tight market for equipment could turn the bonanza into a battlefield.

Exclusively for Dockwiser, Financial Times correspondent Jonathan Wheatley drills deeply into the matter.

Text Jonathan Wheatley Illustrations Schwandt Infographics

Page 12 DOCKWISER

Moored at a quayside at the Keppel FELS shipyard at Angra dos Reis, a sheltered bay down the coast from Rio de Janeiro, floats the enormous P-51 – a semi-submersible oil and natural gas production platform, the first of its kind to be built entirely in Brazil. Now in the final phase of tests, it will soon be towed out to the Marlin Sul oilfield, 110 kilometers from the coast, where it will be anchored in 1,255 meters of water.

Its giant tentacles will reach down to the seabed to 29 separate wells, enough to produce 180,000 barrels of oil and 6 million cubic meters of natural gas a day – nearly 10 percent of Brazil’s current daily production.

From one of its higher decks 50 meters above sea level – yet still dwarfed by pipes, generator exhausts and the 110 meter-tall flame tower – the P-51 seems emblematic of the new Brazil.

DOCKWISER Page 13

DOSSIER BRAZIL Brazilian President Luiz Inácio Lula da Silva holds a Brazilian flag with workers at the inauguration of the Petrobras P-51 platform near Angra dos Reis, Brazil, October 8, 2008.

The P-51 is the first semi-submersible platform, touted as the world’s largest, made entirely in Brazil.

dominance is threatened by the creation of a new national oil company. Other battles lie ahead too, as the world’s oil majors jockey for a share of the coming bonanza, and as Petrobras and its partners rush to secure delivery of the enormous amounts of equipment and expertise they will need to exploit the new finds in an increasingly tight market.

among the most inaccessible oil reserves on earth and present not only promising amounts of oil, but also daunting operational challenges.

Looming battles It is no exaggeration to say the pre-salt fields, discovered by Petrobras in 2007, will transform the world’s oil industry. Tony Hayward, chief executive of BP, says the new finds are “as significant as the North Sea”. So it is ironic that Petrobras, as it prepares to propel Brazil into the big league of oil producing nations, is being challenged for control of the results of its own endeavours. Its executives are engaged in a battle with government ministers over a new regulatory model for Brazil’s oil industry, in which Petrobras’s

New-found oil

reserves may put Brazil

Monopoly broken Whatever happens at the regulatory level, Petrobras seems assured of a lead role in bringing its oil and gas to the surface. For much of its history the company had a monopoly over production and refining of Brazil’s oil reserves. That monopoly was broken in 1997 with a law that introduced the concept of concessions to Brazilian exploration:

Worldwide WORLDWIDEOil OILReserves RESERVES

end 2007, billions of barrels

ahead of Russia in the league table of

oil-producing NATIONS

Mountains covered in dense Atlantic forest plunge into the livid blue and green waters of Angra’s natural harbour, where fish jump even in the middle of the shipyard. Among it all rises the P-51, the symbol and instrument of Brazil’s new-found oil self-sufficiency and one source of its new, predominantly commodity-based wealth.

Something else altogether Altamiro da Motta Filho, project manager for the P-51, is clearly proud of his team’s achievements.

Squinting in the tropical sun, he points out the massive green anchor winches (16 of them, four at each corner) and explains some of the maze of tubes and valves that will be used in the 158 different systems present on the platform. “Each Page 14 DOCKWISER

field has its own characteristics,” he says. “There might be hydrogen sulphide in the oil, for example, which means you have to use particular materials and heat the oil for separation.”

Petrobras, Brazil’s government-controlled oil company, is used to meeting such challenges (“Challenge is our fuel”, says its most recent advertising slogan). In its 55-year history it has set successive world records for deep-water exploration and production. Yet the P-51 will be used in what have become conventional circumstances for Petrobras’s technicians. What will come next, at new discoveries known as the “pre-salt” fields, is something else altogether. As their name suggests, the pre-salt fields are trapped beneath a layer of salt, about 6,000 meters below sea level. They are

Canada

Azerbaijan Iraq

United States

29.4

Venezuela

Brazil

Algeria

12.2

Nigeria

12.6

Angola

15.5

115.0 12.3

6.6

36.2

138.4 101.5

41.5

Sudan 87.0

Kazakhstan

39.8 7.0

Kuwait Libya

Mexico

Russian Federation

79.4

27.7

27.4 97.8

China Iran Qatar United Arab Emirates

264.2

9.0

Saudi Arabia

112.6*

*including Brazilian oil industry regulator’s estimate of 100 billion barrels in pre-salt reserves

Source: BP Statistical Review of World Energy, June 2008

DOCKWISER Page 15

DOSSIER BRAZIL

BRAZIL’S PRE-SALT FIELDS

other oil companies could bid for geographical “blocks” of Brazilian territory (including, especially, its territorial waters), accepting the risk of not finding oil or gas in exchange for rights over whatever reserves they might find.

Among the dozens of concessions sold over the subsequent decade, 10 were later found to be within the pre-salt area when it was discovered in 2007. Soon after, the government cancelled all sales of concessions within the pre-salt fields.

Its argument was that selling pre-salt concessions was akin to selling winning lottery tickets.

During the year following its discovery, 16 test wells were drilled into the pre-salt area. All of them struck oil, of a much lighter grade and higher quality than the heavy crude usually found in Brazil, together with large amounts of natural gas. This 100 percent success rate compares with about 15 percent usual in new areas in Brazil, according to Nilo Azambuja, Page 16 DOCKWISER

a former Petrobras executive now working at High Resolution Technology, a geology and geochemistry service provider.

ULTRA DEEP DRILLING INCREASINGLY IMPORTANT

New regulatory model Even with the end of its monopoly, Petrobras has continued to dominate the industry in Brazil. It is the lead partner in consortia that bought nine out of the ten pre-salt concessions. With the concession model suspended, at least in the pre-salt fields, the government has yet to announce what regulatory model will replace it. One possibility is the creation of a new, 100 percent state-owned company to take ownership of the new reserves and control their production: although Petrobras is controlled by the government through a majority of its voting stock, most of its capital is in nonvoting shares, and about 60 percent of total capital is held by minority, mostly foreign, shareholders.

The government seems reluctant to share the

coming bonanza with those investors. President Luiz Inácio Lula da Silva has revived a slogan popular when Petrobras was created – “the oil is ours” – to encourage popular support for that view and says revenues from the pre-salt fields will be spent on education and social programmes.

Sérgio Gabrielli, Petrobras’s chief executive, has made little effort to hide his distaste for the government’s proposal. He says discussions with ministers have been “heated”. Over the past decade Petrobras has come to resemble a private-sector oil company much more than it does other national oil companies, and has built its reputation for expertise largely on the capital provided by its investors. Talking to Mr Gabrielli and Petrobras’s senior management, it is clear they would like to be left to get on with their jobs without the distraction of politics.

Many industry executives say it is reasonable that they should pay more for concessions in DOCKWISER Page 17

DOSSIER BRAZIL FORECASTED RIG ACTIVITY IN BRAZIL Forecasted Rig Activity in Brazil Pressure‘s rising on exploration resources. Brazil’s ambitious plans place huge demands on worldwide oil industry.

Jack-up

Drillship

Semi-submersible platform

100

“Mere speculation” As the global financial crisis has 80 unfolded, discussion over the new model appears to have been put on 60 hold. In the meantime, attention 40 is focused on the areas already put out to concession, which alone will 20 keep Petrobras and its partners busy for several years. Exactly what these 0 concession holders are sitting on 2006 2007 2008 2009 2010 2011 2012 remains a mystery. Petrobras has Note – assumes that rigs remain in use after end of initial contract. Source: ODS-Petrodata (Rigbase 3 November 2008) examined just two individual fields, known as Tupi and Iara, in enough detail to make rough estimates of VESSELS TO BE CONTRACTED BY PETROBRAS Vessels to be contracted by Petrobras their size. Choosing its words care(under 2008-2012 strategic plan) fully, it says it has been able to make “estimates of the volume of recoverable oil” at each of them, and that Tupi contains between 5 billion and 8 billion barrels and Iara between 3 billion and 4 billion barrels. It has Type Vessel Being Leased To be Leased been careful not to use the word Large Vessels (VLCC/Tankers) 26 44 “reserves” and to insist, repeatedly, Supply Vessels 24 122 that any other estimates are mere FPSO/SS 6 8 speculation.

Others (Jack-ups, TLWP) 1 3 This has not stopped people from Total 175 59 speculating. Haroldo Lima, head of the ANP, Brazil’s oil industry VLCC: very large crude carrier regulator, said in November that just TLWP: tension leg well platform Source: Petrobras those parts of the pre-salt area already put out to concession – equal to less than 40 percent of the total – probably contained the pre-salt fields, as well as bigger royalties on between 50 billion and 80 billion barrels and whatever they produce, but are wary of a new that oil in the entire area could easily surpass level of state control. Service providers, too, 100 billion barrels. Added to its existing reserves have expressed concern over new regulations of about 12.6 billion barrels of oil, this would put demanding high levels of local content for Brazil ahead of Russia and Kuwait, for example, equipment put out to tender by Petrobras. in the league table of oil-producing nations.

“Education is a good thing to spend the proceeds on,” says Eric Smith of the Tulane Energy Subject to revision Institute in New Orleans, “but you would rather Yet Matthew Shaw, upstream analyst at industry have the technicians deciding when to bring wells consultants Wood Mackenzie in Edinburgh, says on line than people interested in local content even Petrobras’s cautious estimates are subject to or education.”

Page 18 DOCKWISER

One thing that is unique, says Mr Shaw, is the nature of the reservoirs. “They are made of a very unusual carbonate. There are no existing analogues for this kind of reservoir. The major question in my mind is over the quality of the reservoir – how well connected the reservoirs are, how well the oil will flow around. There’s no point in having oil if it will not flow through the reservoir to the wells.

So far the indications are very good, but the key issue is long-term deliverability, and that remains unknown.”

Largely symbolic test One test well has been producing oil from the northern end of the pre-salt formation since September 2008, in a field known as Jubarte.

The Tupi field tests, starting March 2009, will prove the area’s potential revision. “We think the range they are talking about could be wider,” he says. “There could be less than 5 billion and more than 8 billion barrels in Tupi. There is still a lot of work to be done on this field. Five years from now we’ll still be learning a lot about it.”

The reason for the uncertainty lies not in any single aspect of the pre-salt fields but in a conjunction of circumstances. The fields are under a lot of water – about 2,000 meters. Below the water Petrobras will have to drill through about 4,000 meters of rock, including the layer of salt that gives the fields their name (“pre-salt” in Brazil, usually “sub-salt” in similar formations elsewhere), which could be anything between 500 and 2,000 meters thick.

No existing analog There are other fields at similar depths and there are pre-salt fields in other parts of the world, although both circumstances put Brazil’s fields at the leading edge of industry technology.

Yet this test is largely symbolic. Jubarte is just 48 mile from the coast, beneath 1,375 meters of water and under an existing field located above the salt layer (which is a mere 200 meters thick at this point). The first serious test of the area’s potential will begin in March 2009 in the Tupi field, when one well will be tied onto an FPSO (Floating Production, Storage and Offloading vessel) and tested for six to nine months. Another well will follow and a lot of data will be analyzed before a long-term pilot program begins in late 2010, involving an expected five wells, bringing up about 100,000 barrels a day.

As Mr Smith at the Tulane Energy Institute puts it: “That’s one hell of a pilot.” And it is one that will attract the attention of industry executives around the world. “Petrobras will want to get that on the scorecard to help promote further investment by international oil companies and by the banks, which have a great deal of confidence in Petrobras. You can’t overestimate the impact this DOCKWISER Page 19

DOSSIER BRAZIL Even in such uncertain conditions few doubt that the pre-salt project

remains viable

under the company’s most recently-published plan to as much as $500 billion or more to exploit the pre-salt fields, many analysts wonder if even a revitalized Brazilian industry will be able to plug the gap in global rig building capacity.

Others fret about the political implications of using Petrobras to kick start domestic shipyards.

Under the previous centrist government, Petrobras behaved much more like a free market company, putting vessels and other equipment out to free tender. Since Mr Lula da Silva’s leftwing government came to power in 2003, it has been used as an instrument of industrial policy.

Bruno Skornicki of Eagle do Brasil, Dockwise’s agent in Rio de Janeiro, says the global crisis is likely to put some of Petrobras’s plans on hold.

As other oil companies review their investments, this may release some of the pressure on equipment supplies.

sticking to plans to lease 59 tankers, FPSOs and program will have, especially on the supply supply vessels, with a further 175 to follow. of deep water assets.”

One reason for insisting it will go ahead as planned Petrobras made the pre-salt project public at in spite of tighter credit conditions is that a time when the supply of rigs and other vital Petrobras will have to fight hard to ensure it gets equipment has been very tight around the world. the share of global rig-making capacity it needs.

“What the credit crisis has done is aggravate Petrobras and the government have made no an already difficult situation,” says RoseAnne secret of the fact that Petrobras’s investment Franco of PFC Energy, an industry consultant, plans will also serve to revitalize the domestic in Washington DC. “The scale of this project shipbuilding industry. But with projected capital is so big that they are hitting walls in terms of expenditure likely to leap from about $65 billion equipment and personnel.” Mr Gabrielli, Petrobras CEO, told an oil industry conference in Rio de Janeiro in Companies involved in BRAZIL FACTS&&Figures FIGURES September 2008 that the project Brazil Facts oil fields Companies that have acquired participation in was already putting pressure on the oil field blocks include Petrobras, Exxon Mobil, Population BG, Royal Dutch Shell, Petrogal, Repsol YPF, industry. “The current installed OGX, Anadarko Petroleum Corp., StatoilHydro X 100 million ASA and Vale, Ecopetrol SA, Colombia's capacity of the global industry that state-controlled oil company, India's ONGC Videsh, Oklahoma City-based Devon Energy provides goods and services to the Corp., and Australia's Karoon Gas Australia Ltd. oil and gas sector will not suffice to Major industries Textiles, shoes, chemicals, cement, lumber, iron meet the future demand Petrobras ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment. will have for its pre-salt projects,” Mining companies 196 Million he said.

Vale, CSN, MMX, MHAG, Rio Tinto, London Mining, Mineração Mendes, V&M Mineração, He added: “Petrobras will have to Ferrous Resources and Bahia Mineração (from Natural resources large to small).

Oil, gas, iron ore, timber, bauxite, gold, manganese, bring forward agreements, support nickel, phosphates, platinum, tin, uranium. strategic suppliers who are interested in enhancing their capacity, raise Proven Oil Speculative Oil funds, and attract new entrants.” reserves oil reserves production x 1 billion

Battle for rigs Already, Petrobras has contracted 35 new or refurbished drilling rigs with start-up scheduled between 2009 and 2012, and made plans to contract a further 28 to come on line between 2013 and 2017. The global credit crisis seems certain to delay the commissioning of some of those rigs, although Petrobras insists there will be no impact on their delivery dates. So far, the company is also Page 20 DOCKWISER

x 1 billion

x 1 million 2.2 million barrels/day (increasing)

12.6 billion barrels

B R A Z I L

Major Ports São Sebastião

112.6 billion barrels

Santos Paranaguá

Proven natural gas reserves x 1 billion m3

Gas production

Brazil Tubarão

x 1 billion m3 18 billion m3 a year

South America Rio Grande

312 billion m3

Less ideological approach What will happen to local content requirements is less certain. Tighter credit conditions may force the government to take a less ideological approach. But the crisis has also encouraged greater government involvement in the real economy. That may mean more public finance for Brazilian competitors and less openness to foreign service providers.

Even in such uncertain conditions few doubt that the pre-salt project remains viable.

Ms Franco at PFC says Petrobras can be sure of support from the Brazilian government, which has opened new credit lines from the BNDES, the national development bank, to Petrobras and its local suppliers. In addition, a proposed sovereign wealth fund, which is likely to be used to invest part of the pre-salt revenues, may also be used to support the initial stages of investment.

As soon as the required financial backup has been arranged for, all it takes is time and hard work to unlock the pre-salt fields’ treasures.

Dockwise sets foot ashore in Brazil As Dockwise is working hard to increase the global reach of its commercial network, the company will intensify its focus on the Brazilian market. In February 2009, Rio de Janeiro will see the opening of a local Dockwise subsidiary. Supervisor for the Brazilian office will be Marten Dresen, currently working in the Breda sales department. He will be working in close cooperation with Dockwise USA and will also be closely affiliated with the local agent for Dockwise, Eagle do Brasil (www.eaglebr.com.br).

The first objective of Dockwise Brazil is to be closer to the market and to build on the familiarity of the Dockwise brand among existing and future Brazilian customers. “We will also be generating business intelligence to build up a complete overview of the oil, gas and heavy materials transport businesses in the growth market that is Brazil,” Dresen says.

Dockwise serves the Americas, including Brazil, from its Houston office. Robb Erickson comments: “The oil and gas, the mining and the shipping sectors are booming in Brazil. Dockwise aims to play a growing role in these developments through offering its unique services and solutions to these industries. Our agent is extremely wellpositioned to reel in contracts and make connections on the highest business level in the relevant Brazilian industries. But he does not have the time to grow and shape the market from the bottom up.

That is what Marten will be focusing on.”

“Business from Brazil will still be channelled to sales managers based in Houston or Breda,” Dresen adds. “But part of the added value of worldwide sales offices is they are able to assist our Breda or Houston-based project teams with local intelligence and customer proximity. Having a local presence on the ground will be reassuring to customers. This will also be the case in Brazil, a country where social interaction and customer closeness are especially important if you want to do business successfully. Initially, this assignment is for three years. Depending on circumstances, like how the financial crisis develops, we will have to see how fast opportunities can materialize. Our goal, however, is to start generating business as quickly as possible.”

Source: U.S. Energy Information Administration

DOCKWISER Page 21

dockwise strategy interview with CCO Martin Adler

Driven, proud and ambitious. These are just some of the characteristics that describe Martin Adler, the new Chief Commercial Officer (CCO) of Dockwise. Adler arrives with a solid technical background and a highly commercial approach.

Determining a new strategy for Dockwise is one of the many challenges of his new appointment.

Text Paul Schaap

The NEW COURSE

‘Further expanding transport-related services’ Page 22 DOCKWISER

Martin Adler, 43, is convinced Dockwise has massive potential.

The opportunity to conquer new markets appeals to him. “I think that’s an important element for me, along with lifting the whole company to a newer and higher operational level.” Asked if the current financial crisis will impact these plans, Adler says, “We will undoubtedly feel some effects, but Dockwise has sufficient work, future potential and reliable business relations in the oil and gas industry to build a secure future.”

‘With our float-over technique we are

the market leader’

Adler was first approached for the position of Chief Commercial Officer at Dockwise in early 2008. Initially he was not particularly interested.

After all, he had an excellent job with the Shaw Group which he had really only just started. Nonetheless, he still had a talk with the Dockwise CEO, André Goedée. The chemistry was instant. Adler also became increasingly convinced by Goedée’s drive and the positive effect it had on the staff. “The pride and self-confidence

of everyone at the company, the tremendous know-how and the sense of moving forward impressed me,” he says. Adler decided to accept the position of CCO. On May 15, he started work at Dockwise.

“I set myself the goal of being fully at home inside the company within two to three months. And I succeeded.

The introduction to the employees at the various offices and customer visits in the United States and China left me with a comfortable feeling. Dockwise delivers a top-quality product, which simply underlined my feeling that I had made the right decision.”

Expanding Transportrelated Services One of Adler’s first tasks after joining was to bring the organisation into line with the new Dockwise strategy.

“We wish to present ourselves more as a transport management company,” he explains. “After all, we can do so much more than merely transport.

We are in a position to further expand transport-related services. For example, we are already working on offshore installation projects. With our floatover technique we are the market leader.

It is a niche market and a growth sector.

But as part of our transport activities, we can also offer additional services to large onshore projects, under the heading logistical transport management.”

DOCKWISER Page 23

dockwise strategy

Martin Adler’s career Martin Adler was born in Hillegom, The Netherlands, at the heart of the world’s best-known bulb-growing area. He grew up in Heerlen in the Limburg province and completed a course in Civil Engineering (Maritime Engineering) at the University of Technology in Delft, specializing in steel and concrete. Adler started his active career at the offices of the celebrated American contractors Badger (later Raytheon E & C) in The Hague. In his work, he progressed from lead/civil/structural engineer to project manager. “Then I realized that I was more interested in the commercial aspects rather than the technical side.” At Badger, Adler was given an opportunity in 1996 to acquire new skills in that direction, and he was even able to fulfill his wish to follow an MBA course at the Erasmus University in Rotterdam.

In 2000, he was asked to join the American contractor Fluor as Sales Director. He was rapidly admitted to the executive management team there and was more commercially focused than technically oriented. From 2003 onwards, he ran the Europe & Middle East Chemical Sales & Marketing division. After focusing on sales at Fluor until 2005, he switched to the Shaw Group where he headed up the Sales & Marketing organization.

Adler: “The Shaw Group had taken over Stone & Webster a number of years earlier and was by that time using Badger technology. The Group aimed to use these skills to expand its share in the energy and chemical sectors, and first as vice-president, and subsequently as senior vice-president, I played a key role in these plans.”

But Adler did not stay with the Shaw Group for long.

Dockwise was calling.

Page 24 DOCKWISER

core valueS

PASSION

The Best Candidate Increasingly, projects are being undertaken in remote and resource-constrained locations where modular fabrication is the method of choice.

According to Adler, Dockwise can deliver considerable added value. “I believe that now is the right time to join that market. We are the best

‘Consider us more as a logistic interface manager between the parties involved’ candidate for taking on the role of program manager for the larger contractors. Consider us more as a logistic interface manager between the parties involved; we are capable of reducing risks or eradicating them entirely on behalf of our clients, lowering investment costs and offering project security in a safe and reliable manner. The necessary knowledge at Dockwise is already in-depth. All we need to do is achieve a turnaround in perception in the industry in favor of modular fabrication. Much work is already being undertaken behind the scenes at Dockwise, on a number of specific proposals for expanding our strategy in this new market segment.

We will have to talk to our customers and further build up the curriculum. We are going to succeed, and then the rest will follow.”

Gerard Jansen sales director (53)

Motto: ‘Educate the younger guys in the company’ When Gerard joined Dockwise in 2001, he brought along 20-plus years of experience, knowledge and network know-how. In Houston he earned the nickname Grandmaster because of his wizardry in building relationships and securing contracts. “Relationships pave the road to success. Most of my strongest business relations happened during negotiations…you make a friend for life.”

When asked about his goals he says, “I think we need to make sure we educate the younger guys in the company, secure float-over and onshore industrial projects, step in early in future projects with oil and gas companies and team up with EPIC (Engineering, Procurement, Installation & Commissioning) players. Dockwise is in a position where we are striving to be the best of the best. The work we have done over the last 3-5 years has only added to our credibility.”

DOCKWISER Page 25

SMART LOGISTICS From Regular Transport to ‘four-party logistics’

Managing The Modular Future In the development and construction of large industrial complexes, the modular approach is key.

Alongside this modularity, scientific research confirms that smart logistics are becoming increasingly important, explains Professor Kees Ruijgrok.

Text Paul Schaap

It is an increasingly common worldwide trend to construct large, industrial complexes on a modular basis. Manufacturers in South Korea, Malaysia and Singapore are reaping the fruits of this approach. The next stage is transporting these modules, by water, to their final destination, where assembly and commissioning take place.

Dockwise is filling the logistical gap this modular trend has created and has initiated a study into the possibilities, headed by Kees Ruijgrok.

Ruijgrok teaches logistical management at the TiasNimbas Business School at the University of Tilburg. Through this study, he has followed with great interest how Dockwise has developed its business from simply transporting goods from A to B. Carrying out offshore installation work is one example. The next stage for the company is the transportation of large numbers of modules for manufacturing LNG terminals, refineries, chemical complexes and Page 26 DOCKWISER

Professor Ruijgrok: “Every day gained in operation represents major savings”

power stations. And as Ruijgrok discovered, delivery projects of this kind require a special approach.

“Our research was carried out by three students, all of whom have been employed in the logistics sector for between five and ten years, and who have followed a two-year masters course in transport and logistic management. Dockwise instructed us to define a business model, together with the required organization forms and the underlying processes, to enable the company to manage the logistics of major industrial projects,” Ruijgrok says. The students spent a total of five months on this study, which led to remarkable results.

operations have to be carried out for a single major project, good capacity planning could improve the efficiency and yield for the contractor.

But there are other areas in which profits can be made, too. “The construction of LNG terminals and other industrial complexes,” Ruijgrok continues, “are always massive jobs. Once the client has obtained all the necessary licenses, he usually wants to get down to work straight away.

Uncertainty about module delivery leads to unreliable planning. This is a major problem for many clients, even though they make every effort to ensure that their installation is commissioned on the planned date. Every day gained in operation represents major savings. In this overall process, Dockwise can play a key role when it comes to reducing uncertainties about the timely delivery of the modules. In addition, on the basis of sound transportation planning, the installation can often be handed over ahead of schedule, with all the resultant financial advantages.”

Three Business Models With this knowledge on board, the researchers developed three business models. The first model deals with the current standard form of transport, typified as business as usual. In the study, this is referred to as two-party logistics (2PL), in which the module manufacturer and the client are the two parties.

With sound transportation planning, installations can often be handed over

ahead OF schedule In the second model, called three-party logistics (3PL), an intermediary helps to monitor the activities of the manufacturer and the client, thereby anticipating major events; for example, if the planning has to be adjusted because the modules are delivered late.

The third model is known as four-party logistics (4PL), or chain supply management. This model includes the deployment of a chain manager, who then directs all the parties involved. In other words, this person synchronizes all the activities that make up the transportation of large numbers of modules by ensuring smooth harmonization with all parties involved.

For these business models, the students produced a so-called Monte Carlo simulation, which contains a selection of smart solutions for the optimum planning of complex transport orders. It also keeps uncertainties for the client to a minimum, ensuring that a modular-built installation can be commissioned on time, and sometimes even ahead of schedule. This, in turn, leads to major cost savings. “The challenge for Dockwise now lies in putting this concept into practice,” Ruijgrok says.

The students - Patrick van Aert, Harrold van den Nieuwboer and Wim Wesselius successfully completed their master’s course, From Transport to Network Management, using this project as the basis.

Considerable savings “To date, the activities of Dockwise have focused mainly on transporting heavy structures like drilling rigs. In this process, the client determines when the transportation will take place and the contractor completes the task. The question was whether it would be possible to achieve better capacity utilization of the vessel if the transportation operation could be carried out at another time. Essentially, if multiple transportation DOCKWISER Page 27

ENGINEERING Text paul schaap

dual barge float-over installation design, bohai bay, china

Lean, mean, and perfectly qualified for the most challenging structural design and engineering jobs. By adding their specific expertise, engineers at Offshore Kinematics Inc. (OKI) and Ocean Dynamics LLC (ODL) enable the Dockwise Group realize its strategy of offering more turnkey services for its targeted onshore and offshore projects.

OKI and ODL, both based in Houston, are small-sized highly skilled experts in the engineering and installation of offshore structures, with a strong focus on the float-over methodo­ logy. Their capabilities work seamlessly with Dockwise’s large, open-stern, semi-submersible vessels and their established engineering and project management capabilities. Their problem-solving abilities are a perfect match with the down-to-earth mentality at Dockwise. Ever since the takeover in July 2007, the three companies have been building up an integrated, constructive approach in design and engineering for offshore float-over projects.

This is paying off.

“These engineering companies fit very well into the Dockwise strategy of natural growth,” says Jaap Meij, Vice President Sales for Onshore and Offshore Projects. “Their main task is to help expand the Group’s position as a full service provider for the oil and gas industry by offering knowhow and a wide range of capabilities to meet the requirements of our customers at affordable prices.

By developing these capabilities, and by optimizing synergies within our Group, we are taking new steps toward the next phase in our strategy: offering our clients integrated lump sum solutions. It also means we will be increasingly competitive with the existing major engineering and construction companies in the offshore industry.”

Joint projects Immediately following the takeover, the companies started working closely. “Despite the differences in standards and business cultures – Dutch, American and Chinese – we managed this process pretty well,” says Aldo Benavides, ODL’s Sales and Marketing Manager. “Last year, for example, we worked on a friction fender research project with Dockwise.”

Dockwise works closely together with its partners on numerous projects. Examples of the major projects jointly executed now are the CPOC float-over installation and the structural design, detailed engineering and logistical management for the transportation of the modules for the Koniambo Nickle Plant.

Taking a Proactive Role There is much more to come. Thanks to the synergies between the three companies, Dockwise can offer its customers a much wider range of float-over project services. These include feasibility analyses, detailed design and engineering, transportation, hardware design, supply logistics and implementation.

“At the same time,” continues Benavides, “ODL contributes expertise and experience in different engineering areas. This allows Dockwise to take a proactive role in the design of large offshore structures.” Furthermore, ODL can do the front-end engineering and design (FEED) concept selections and conceptual and detailed structural design for offshore structures.

OKI and ODL/ODC: Valuable contributors toward Dockwise’s growth ambitions

Engineering Expertise Page 28 DOCKWISER

DOCKWISER Page 29

ENGINEERING

core valueS

PASSION

Jaap Meij:

‘OKI and ODL fit well into

the Dockwise strategy of natural growth’

Dual barge float-over project, corocoro field, Venezuela

“With the acquisition of OKI and ODL, Dockwise has significantly increased its transport and installation engineering capabilities,” Jaap Meij adds. “And with lean teams working in the US and China, we can run projects almost 24 hours a day and be very responsive to clients.”

Further Expanding the Network Looking to the future, Benavides expects that close cooperation will further expand the international network and that more project opportunities will emerge. He also expects further growth in engineering expertise based on the vision of Dockwise.

He even foresees full integration between the two companies. “By joining forces in R&D projects, Dockwise and ODL occupy a solid position in the float-over installation market. By making optimum use of our offices in the US and China and our core engineering team with more than 20 years of experience in the industry, we will no doubt be able to grow further in all fields of offshore engineering.”

Page 30 DOCKWISER

OKI and ODL: Short But Great Names OKI and ODL may be short abbreviations; Offshore Kinematics Inc. and Ocean Dynamics LLC are great names in their fields.

OKI is a Houston-based specialist in the design and fabrication of load transfer systems such as Leg Mating Units (LMUs) and Deck Support Units (DSUs). These mega-sized shock absorbers measuring from 36 inches to as much as 96 inches in diameter are critical elements in the execution of float-over operations.

ODL is an engineering consulting company, also headquartered in Houston, Texas with a fully-owned subsidiary called Ocean Dynamics China (ODC) in Shenzhen City, in the Hong Kong area. ODL is a specialist in the analysis and design of various fixed and floating offshore structures, marine analyses and design, riser design, mooring systems and offshore transportation and installation. ODL can call upon the strongest engineering design and project management team anywhere, for compliant tower and dual barge float-over projects.

Since 2004, ODL has performed and executed many offshore engineering projects. Milestones include the design and execution of the dual barge installation float-over in the Corocoro Field in Venezuela and the complete design, fabrication and installation supervision for the tallest fixed structure in Asia, the PY-30.

In November 2008, ODL was awarded a contract by the CNOOC Research Center to perform a Spar Conceptual Design for a field in a South China Sea typhoon area, where the water is approximately 1,500 meters deep.

GIJS VAN DE GRIENDT Sales Coordinator (25)

Motto: ‘Carpe Diem’ Gijs joined Dockwise in April, 2008 after graduating from Erasmus University School of Business and Economics. “I will never forget the first time I heard about Dockwise. I was so impressed by the projects, the services they deliver and the transports.”

When asked about his passion to become a sales manager he said, “Lately I have become more involved in the process of securing contracts, and I would like to be more involved with the clients. Next year the goals will go up, which means expansion, and this will open a space for me to step in. I see this as a great opportunity.”

Recently Gijs was sent to Dockwise’s sales office in Shanghai where he gained insight coordinating projects originating in China that were sent to Breda.

For Gijs, the global horizon is large and full of opportunities.

DOCKWISER Page 31

WORLD OFDOCKWISE

Serving Customers Around the Globe The specialists of Dockwise are sailing the seven seas, their vessels visiting harbors from China to the US and from Australia to Brazil, serving customers around the world.

The four operating companies of the Dockwise Group are organized accordingly, on the same international scale, with offices strategically located in main ports around the globe.

Illustration Schwandt Infographics

Dockwise Yacht Transport LLC

Dockwise Yacht Transport France Sarl.

Dockwise Yacht Transport Europe Srl.

Dockwise Shipping B.V.

Dockwise Shipping B.V. Shanghai

1535 S.E. 17th Street Suite 200 FORT LAUDERDALE, FL 33316 USA TEL: +1 954 525 87 07 FAX: +1 954 525 87 11 dyt.usa@dockwise-yt.com

Port Azur 3 79 Avenue des Frères Roustan 06220 GOLFE JUAN France TEL: +33 (0) 493 93 18 56 FAX: +33 (0) 493 49 15 39 dyt.france@dockwise.com

Corso Paganini 39/2 16125 GENOVA Italy TEL: +39 010 278 94 11 FAX: +39 06 9159 44 58 dyt.europe@dockwise-yt.com

Lage Mosten 21 4822 NJ BREDA

Suite 521B, Shanghai Centre 1376, Nanjing Xi Lu Jingan District SHANGHAI 200040 China TEL: +86 21 6279 83 00 FAX: +86 21 6279 83 98 dockwise.china@dockwise.com

Steven Byle

President Offshore Kinematics

Robb Erickson

President Dockwise USA

P.O. Box 3208 4800 DE BREDA

Clemens van der Werf

President Dockwise Yacht Transport

Martin Adler

Chief Commercial Officer

André Goedée

Chief Executive Officer

HEAD OFFICE Mintflower Place, 8 Par-la-Ville Road HAMILTON HM 08 BERMUDA TEL: +1 441 294 37 38 FAX: +1 441 295 01 64 dockwise.bermuda@dockwise.com

General Manager China

Jeroen van der Eng

7906 N. Sam Houston Parkway W. Suite 101 HOUSTON, TX 77064 USA TEL: +1 713 934 73 00 FAX: +1 713 934 73 33 dockwise.usa@dockwise.com

Dockwise Nigeria Contact via main commercial office BREDA: TEL: +31 (0)76 548 41 00 FAX: +31 (0)76 548 42 99 dockwise.netherlands@dockwise.com

(incorp. in process)

Dockwise Korea Ltd. 1st Floor Sejong Telecom 1453 Woo-Dong Haeundae-Gu BUSAN 612-020 Korea TEL: +82 51 580 92 35 FAX: +82 51 580 92 40 dockwise.korea@dockwise.com

Area Manager Korea

Dockwise Nigeria Ltd.

dockwise.brasil@dockwise.com

Martin Ma

Jeroen van der Eng

Dockwise USA LLC

Dockwise Brasil

Jaap Meij

Vice President Sales for Onshore and Offshore Projects

Ocean Dynamics LLC

Ocean Dynamics China

16300 Katy Freeway Suite 210 HOUSTON, TX 77094 USA TEL: +1 281 578 31 30 FAX: +1 281 578 34 06 jim.li@oceandyn.com

30C Seascape Plaza No.18 Taizi Road Shekou Nanshan District ShenZhen GUANGDONG 518067 China TEL: +86 (0)755 2667 58 21 FAX: +86 (0)755 2667 58 21 jim.li@oceandyn.com

Jim Li

President Ocean Dynamics LLC and China

Page 32 DOCKWISER

The Netherlands TEL: +31 (0)76 548 41 00 FAX: +31 (0)76 548 42 99 dockwise.netherlands@dockwise.com

Dockwise Ltd.

Offshore Kinematics Inc. 2050 N. Loop W., Suite 201 HOUSTON, TX 77292 USA TEL: +1 832 859 50 60 FAX: +1 713 572 04 95 byle@offshorekinematics.com

Main commercial office

Dockwise Shipping Australia Pty. Ltd.

Ben van der Hoeven

Area Manager Australia

Suite 4, Lvl 1, 610 Murray Street WEST PERTH, WA 6005 P.O. Box 268, WEST PERTH, WA 6872 Australia TEL: +61 (0)8 9322 43 30 FAX: +61 (0)8 9322 37 52 dockwise.australia@dockwise.com

DOCKWISER Page 33

Businesscase BOSKALIS

‘Yes, We Can!’ In mid 2008, Dockwise and Royal Boskalis Westminster nv joined forces to create another win/win transport. Among the specific challenges for this project: cargo pick-ups at two different locations.

Text Melanie Struben

Page 34 DOCKWISER

Boskalis is an international, leading dredging contractor with a long-standing, commercial relationship with Dockwise. In fact, Dockwise and Boskalis’ business relationship began 15-20 years ago when Dockwise was still Dock Express B.V. Boskalis’ Manager of Logistics, Hans Barth said, “We have worked with Dockwise on many transports from Singapore to Melbourne, Australia, along with transports from Singapore to the Middle East. Basically, we need vessels for mobilizing dredging equipment and Dockwise is one of our preferred providers for moving large loads.”

Cooperation Bound for Vietnam, the Swift, one of Dockwise’s four Swan class vessels, had just unloaded her cargo in Angra dos Reis, Brazil. Jurgen de Prez, Senior Sales Manager at Dockwise, became aware that this vessel would be sailing empty so he focused on how best to synchronize the empty vessel with a cargo in a very short amount of time.

Thanks to the cooperative, “can-do” attitude shared

by Dockwise and Boskalis the commercial and technical challenges were not too difficult to inhibit a mutually beneficial business relationship. De Prez said, “Dredging companies, like Boskalis, typically have the shortest horizon for transport demands and they are the most flexible in regards to time.” After contacting Barth at Boskalis, Dockwise’s De Prez was able to negotiate a transport from Brazil to Abu Dhabi via Angola.

Communication Vessels normally carry a full cargo from location A to location B. In this case, Boskalis needed Dockwise to pick up a second cargo in Soyo, Angola. The quantity of equipment Boskalis needed to be transported was not difficult. The challenging aspect was figuring out how to pick up the second cargo, while keeping the first cargo seafastened to the vessel.

Jan de Jonge, Dockwise’s Transport and Marine Engineer said, “We solved the problem by

DOCKWISER Page 35

Businesscase

core valueS

PASSION

Maarten Vink

Manager of Engineering (40)

Motto: ‘Never give up’

Senior Sales Manager, Jurgen de Prez

ballasting the first cargo, which insured that it would stay on deck. Communication between the two parties is what made this project possible.”

The technical department at Dockwise made a huge effort to assure that this second loading took place. Barth said, “It’s a good thing that the technical people at Dockwise were coming to our office to work with our Soyo project team. In the end the project was a success because everyone was thinking: ‘Yes, we can!

We can do this.’ Dockwise was really thinking with Boskalis to solve the problem.”

Synchronization When planning the submerge-operation in Soyo, it would be cost and time efficient if dredging equipment loaded in Angra dos Reis could stay onboard without cutting loose the seafastenings. In that respect, and based on the supplied cargo drafts from Boskalis, the Swift had to ballast down to a draft of 17.80 meters forward and 13.25

Page 36 DOCKWISER

meters aft, requiring a water depth of 18.80 meters and 14.25 meters respectively.

Boskalis prepared a suitable submerge-area to meet this depth requirement, which enabled the vessel to submerge and successfully float-on the additional cargo. De Prez said, “Boskalis assisted Dockwise by synchronizing the dates their cargo needed to be transported with the availability of our vessel in the Brazilian port, and Dockwise assisted Boskalis by overcoming the technical obstacles involved in picking up the second cargo in Angola.”

The commercial and technical finesse employed by both parties transformed the June transport into an ideal success story.

“The dredging industry is still strong; there are a lot of projects on the horizon and we look forward to continuing our relationship in the future,” said Barth.

‘The dredging industry

Maarten thrives on making the impossible, possible.

He started his career at 20 years of age in the commercial navy as a Marine Engineer. He joined Dockwise in January, 2007. His background includes 11 year of duty in the Dutch Navy including a “new build” program as project engineer for Navy Frigates. He joined Schiphol Airport as Technical Manager for a period of 3 years. He has degrees in Mechanical and Business Engineering from the Naval Academy in Den Helder and Delft Technical, as well as operational skills in engineering damage control and fire-fighting for NATO warships. “One important goal for me is to continue to create a department with broader knowledge and experience. I think the guys in my department are smart, driven, enthusiastic, hard working, and full of good ideas.” As Maarten’s team continues to conquer the challenges involved in heavy transport, he feels his role is to push the limits, while always making every journey safer.

“Outside of work, I am passionate about my family.

It’s important that employees have quality time in their private lives, so they can give back quality time to the company.” In addition to spending time with his family and remodelling his house, he is busy restoring two small leisure vessels.

is still strong; there are a lot of projects on the horizon’

Boskalis, the company Royal Boskalis Westminster nv is an international group with a leading position in the world market for dredging services.

Boskalis’ core activities are the construction and maintenance of ports and waterways, land reclamation, coastal defence and riverbank protection.

Boskalis holds important home market positions in and outside of Europe and targets all market segments in the dredging industry.

It also has positions in strategic partnerships in the Middle East (Archirodon) and in offshore services (Lamnalco).

DOCKWISER Page 37

CONSIDER IT DONE!

Exceptional transport of the 7,500-ton EXMAR-Opti-Ex hull

Balancing Act Transporting the newly developed EXMAR-Opti-Ex hull from Korea to the Gulf of Mexico was nothing less than a balancing act. During the operation, 80 percent of the total weight of the hull was suspended outside the vessel. Project Engineer Marco van der List explains how Dockwise met this15,000 mile challenge.

Text Paul Schaap

The objective of the program was the deployment

by EXMAR of the Opti-Ex Floating Production System, developed for the exploration of marginal fields in deep water, or for alternative deployment as an early production system in medium or large fields. Construction of the hull was outsourced to Samsung, while the topside was built at the Kiewit yard in Corpus Christi, Texas, US. Dockwise transported the hull from Korea to the Gulf of Mexico and took the opportunity to deploy its own project team and investigate its own capabilities as a logistic service provider.

Van der List is pleased with the way things worked out. “We maintained an active dialogue with all parties to identify the ideal opportunities, thus simplifying the project, reducing the risks and saving time. The advantages for everyone involved were considerable and, certainly for us, it was an excellent exercise for a number of other projects, includPage 38 DOCKWISER

ing Vyborg which is scheduled for 2010.” Both the EXMAR office from Houston and Samsung were open to the new Dockwise approach.

Reduced risks The transport operation also involved a number of technical challenges, all of which we were fortunately able to solve,” says Van der List. The Dockwise scope of work also included vessel outfitting to support the load-out of the 7,500-ton hull. “In this particular case, the engineering and construction of the skidbeams and their installation onboard the semi-submersible transport vessel Swan was part of the Dockwise scope.

We took this opportunity to reuse a set of existing skidbeams. This approach reduced risks related to the lead time for skidbeam production.

New design elements included the hinged link beams that were mounted between the skidbeams

onboard and those onshore including several lessons learned from previous load-outs by Samsung and Dockwise. Samsung and Dockwise also came up with an alternative method for anchoring the strand jacks used for pushing the hull onboard the transport vessel. Contrary to standard practice, these anchors were mounted on the quayside, rather than on the vessel. This was possible thanks to the massive overhang of the Opti-Ex hull.”

By using hinged link beams and anchoring the strand jacks to the quayside, the physical interplay of forces was perfectly optimized during the loadout operation. As a result, the forces acting on the vessel and the cargo during the load-out became more predictable, elevating the sensitivity of the ballast operation. This could only be achieved thanks to an open team effort between engineers at EXMAR, Samsung and Dockwise.

Special cribbing bed EXMAR wanted to have the hull transported in a specific way, so many calculations and analyses were carried out to ensure this could be accomplished.

Van der List: “The hull consisted of a square floater measuring 76 by 76 meters. At each corner was a column weighing 1,400 ton. EXMAR’s requested transport configuration meant that the hull protruded 22.27 meters on both sides of the Swan’s deck and 80 percent of the total weight of the hull was suspended outside the vessel itself.”

A transport configuration proposed by Dockwise would have resulted in more weight above the deck, but would also have necessitated numerous structural modifications to the cargo. Realizing this, both EXMAR and the transport engineering department at Dockwise set to work analyzing the situation. “The eventual result was the design of a special cribbing profile where a number of longitudinal stiffeners in the cargo were also used to provide additional support.”

The eventual transport configuration also made it possible for the wooden cribbing to be pre-installed on deck, together with the skid beams, before the actual load-out. Once the hull had been skidded onboard and temporarily seafastened, the Swan was towed to an anchoring point and partially submerged. This was followed by a so-called floataft operation.

“Normally, in a situation of this kind, the hull

would be unloaded via the float-off method and hull and vessel subsequently towed back to the yard,” Van der List explains. “Once in place, the skidbeams would be removed from the deck and, in many cases, the cribbing could only then be applied. It’s an operation that usually took several days and includes multiple towing operations.

In our case, the cribbing was already in position on deck and, once the hull was floating, in a single operation it was floated-aft using the Swan’s own winch gear and directly positioned on the cribbing.

This float-aft operation made it possible to reduce the risks related to moving the cargo around, and to save a considerable amount of time.”

On October 25, the Swan, carrying the 48 meterhigh EXMAR-Opti-Ex hull, left Korea and safely arrived, 15,000 mile and seven weeks later, at the Kiewit yard in Corpus Christi. “Both the fabrication yard and the customer were delighted with how we undertook this task. Dockwise presented a solution that served the client’s technical and commercial interests. Not only was the delicate balance of the load exceptional, but the way in which the actual Engineering was carried out by the Dockwise engineering team in Breda is worth noting. This team consisted of experts in the field of structural engineering, transport engineering, marine engineering and staff of the drafting department.

For us this project-based approach was a useful learning curve and the experience gained will offer huge advantages for all parties involved in future projects,” Van der List concludes.

DURING TRANSPORTATION, 80 PERCENT OF THE WEIGHT OF THE HULL WAS SUSPENDED OUTSIDE THE VESSEL.

DOCKWISER Page 39

CONSIDER IT DONE!

Vyborg A-Z Total Project Management

Float-over on a Floating Structure According to Bas Mabélus, Dockwise Proposal Manager, “Preparations for the Vyborg project have been underway for two years now. In addition to transporting the two hulls and topsides, Dockwise is responsible for laying out and installing the mooring spread, subcontracting, engineering and the execution of the floating float-over.

In short, total logistical project management.”

The two-semi submersible drilling/production platforms will be deployed in the huge Shtokman gas field, some 373 mile off the coast of Murmansk. Both platforms are designed for operation in arctic conditions.

The first topside structure will be transported in April 2010 and the second topside transport is scheduled for October 2010.

The floating float-over operations will take place soon after the transport. “For Dockwise,” Mabélus says, “this is one of the largest projects we have ever undertaken.

One key element is that the journey to transport the topside units will not take us via the Suez Canal, but around the Cape of Good Hope. This longer route is necessary because the topsides are too high to pass through the Canal.”

Text Paul Schaap

Start: sail out of the hull

Dockwise is the only company capable of independently implementing all facets of this complex and extensive project. “It is a particularly appealing and challenging project. We will leave no stone unturned to ensure it is completed successfully,” says Mabélus.

The hulls will be built at the Vyborg Shipyard in Russia, while the fabrication of the two deck structures each weighing 18,000 Page 40 DOCKWISER

Hook-up the black marlin

ton, will be carried out at the Samsung yard in Korea. Dockwise’s semi-submersible vessel Black Marlin will transport the topsides from the yard at Geoje in Korea to the port of Murmansk in Russia. The two hulls will be transported on two T-class vessels from Vyborg Shipyard to Murmansk harbor, where Dockwise will carry out the two floating float-over operations at a sheltered location.

finish: the load transfer

Innovative Engineering Leads the Way “Our dynamic proposal team really clicked with its counterparts in Vyborg. This helps especially when technical questions need more clarification,” comments Dockwise Area Manager CIS Countries, Dominiek Ampe. Vyborg trusts Dockwise’s reliability.

In summary, Mabélus says, “Dockwise is unifying all aspects of the project including laying out the anchor patterns in the port of Murmansk, ballasting the hulls and hiring the deployment of the necessary tugs.

Above all, the ballasting operation for the floating float-over will be a complex task.

The hulls have to be ballasted extra deep in the water – something they were not originally designed for – and the work will call for the deployment of additional generators and pumps. One advantage of the floating float-over operation is that both the hull itself and the vessel carrying the topsides are floating, allowing a little more flexibility.”

This is different from the f loat-over operation where the vessel sails in between jackets fixed to the seabed. Dockwise chose to use the Black Marlin, because it can handle the weight of the topsides.

What is more, she also only measures 42 meters across and fits perfectly between the columns on the floating hulls.

Vyborg chose to perform the hook-up and commissioning at Murmansk, so that the Russian industry as a whole will receive the necessary learning and as a surplus there will be a limited mobilization to the Shtokman field. The Vyborg rigs will be the first in the Shtokman field.

‘Our dynamic proposal team really clicked with its counterparts in Vyborg.

This helps especially when technical questions

need more

clarification’

Dockwise Area Manager CIS Countries, Dominiek Ampe DOCKWISER Page 41

Captain’S LOG ‘I’m Just a Boy Who Likes to Play with Boats’ Hans van der Harst

former Sailor, now Senior Project Superintendent (49)

As a small boy Hans wanted to be a Captain.

When asked about his career he says, “The Dockwise vessels are recognized all over the world. I remember the first time I saw a picture of one of the vessels, I was so intrigued.”

Text Melanie Struben

HANS VAN DER HARST Studied at the Nautical School in Rotterdam.

Started sailing in 1983 with Spliethoff.

First voyage on the Mighty Servant 1 in 1989 via crewing agency Redwijs.

Started with Dockwise in 1990.

Became a Senior Project Superintendent in 2004.

Heaviest Weight: Moho Bilondo FPU weighed 32.893 ton.

Helena Dora Lammertink was the 2nd Superintendent assigned to assist with the loading.

Least Maneuvering Space for positioning between cargos: the 3 Rowan Jack-Up Rigs transported on the Black Marlin.

Most Extreme Project: the 1st vessel float-over project, Amenan.

This had never been done before.

Page 42 DOCKWISER

The intriguing part about Hans is his relaxed, almost humble demeanor when he refers to the amazing projects he has been involved in. Hans captained the first vessel float-over project in 2003, which he refers to as “extreme”, then quickly moves on to say, “every project is a learning experience because they are all so versatile. Sometimes the cargoes that appear to be easy turn out to be the most difficult.”

Hans opens his Seaman’s book and recalls his favorite projects. “I really enjoyed the Rowan project in January, 2006 when three Jack-up Rigs were loaded onto the Black Marlin, which meant every inch of available deck space had to be used.

I remember looking up at all those legs and feeling really satisfied.”

The glimmer in his eye begins to shine as he recalls the day in December, 2007 when the combination of weight and bad-weather made the Moho Bilondo project stand out as a success. “We knew there was a small window of opportunity and we were still de-ballasting, with the cargo just in position on the cribbing, when the wind picked up. I love the satisfaction that comes from successfully getting a construction project positioned onto the deck. It is satisfying when a job is done and everyone is safe and healthy.”

Hans is currently working as a Senior Project Superintendent, which means he spends more time planning the transports in the office than actually working aboard the vessels. When asked about the waves on land, he responds by saying, “Sometimes the waves are higher in the office because there is so much client interaction. When you are out at sea, you are your own boss.”

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Dockwiser is a publication of Dockwise, communication@dockwise.com

Concept/realization Readershouse Brand Media Art direction Monique van Kessel CONTRIBUTORS Mike Croall, Paul Schaap/PAS Publicaties, Schwandt Infographics, Mike Stevens, Jonathan Wheatley PHOTOGRAPHY a.o. Robert Govers, Hollandse Hoogte, iStockphoto, Klaas Slot PREPRESS GPB Leiderdorp Printed by Koninklijke Broese & Peereboom B.V. Breda

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