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An alliance for effi cient FPSO solutionsAU T H O R : S a n j a y Ve r m a , D i r e c t o r, A l l i a n c e M a n a g e m e n t , W ä r t s i l ä S h i p Po w e r

The market for fl oating production, storage and offl oading (FPSO) vessels is linked to the global demand for oil. As the market recovers, the Wärtsilä-Emerson alliance is becoming increasingly important.

Th e long-term fundamentals with respect to energy use have not changed. Energy demand is expected to continue to grow, while oil and gas are expected to remain the primary energy sources in the near future. Exploration and production costswill continue to increase as more remoteoil sources, such as deep-water off shorewells, have to be tapped.

From a low of USD 35 per barrel inDecember 2008, oil prices were back inthe USD 70-80 range by the end of 2009.Future market indicators suggest prices ofUSD 100+ in the not-so-distant future.It is this future price prediction that lies

behind the viability of the more diffi cultprojects.

Deep-water oil exploration has been constrained thus far by restricted rig availability. However, by 2012 the number of deep water drilling rigs in operation is expected to double, and therefore the number of deep water fi nds will undoubtedly increase. Th is will produce a growing requirement for FPSO systems.

More than 150 projects involving the potential use of FPSO systems are currentlyat various stages of planning. About one-third of these are already at an advanced stage of bidding or fi nal design, and most of these projects will move forward.

An FPSO unit is usually the best, andoften the only, way to extract hydrocarbonsfrom deep-water wells. FPSOs are able to withstand sea motion, have large oil storage capacity, large deck space and loadcapability, can operate in shallow or deep

water, are re-deployable, and are inherentlysafe. Th ough they need a turret in someareas, and sometimes require subsea installations and fl exible risers, FPSOs canbe relied on to provide stability, volumeand inherent safety.

Sharing technologiesIn 2008, Wärtsilä entered into an alliancewith US-based Emerson Process Management to jointly develop safe, effi cient and enhanced solutions for FPSO owners and operators worldwide. Th e Wärtsilä-Emerson alliance manages a large scope of complex equipment interfaces under single responsibility, thereby mitigating project completion risks.

Th e outcome of this alliance has beenthat the two companies have successfullycombined their strengths to give customers:

■ Reduced project risk ■ Faster project execution

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■ A full range of power, propulsion and automation systems

■ Best in class products integrated into overall solutions

■ An optimal CAPEX/OPEX solution.

Wärtsilä and Emerson are major suppliers to the off shore industry. Together, they are able to deliver completely integrated energy and automation systems for FPSOvessels, as well as for semi submersible oil and gas drilling rigs.

Th e range of products and systems delivered by the alliance, includes those for power generation, power distribution, power drives and propulsion, and a completely integrated FPSO topside controland safety system, i.e. the process equipment.Projects are taken from the feasibility studyphase, to front-end engineering and design(FEED), to system deliveries and installation,and all the way through to operational and

lifecycle support.Th e FPSO projects are designed and

co-ordinated by the Wärtsilä and Emerson teams in Norway. Th e two companies have worked together to develop standards and procedures using their experiences from previous off shore and marine projects. Th e concepts and design work will incorporate innovative solutions, such as integrated operations, embedded asset management, and the use of smart wireless technology.

Both Wärtsilä and Emerson have a signifi cant presence in all the main off shore market areas. In addition to the existing alliance teams located in Norwayand Singapore, further teams are plannedfor Houston and Rio de Janerio. Th eselocal execution and support centres willact as hubs, co-ordinating servicesaround the globe.

Th e goal is not only to provide engineering services on an individual

project basis, but also to better manage the challenges of complex global project execution. Th is is achieved by gaining better control of standardization in the design and implementation of work performed in diff erent locations for the sameproject. Th ese marine and off shore centres will, therefore, act as centralized bases foreach design package. Consequently, the handover to other world areas and otherteams, during and after the project, can beeffi ciently managed.

Project handlingSolutions related to automation and control, and power and propulsion, comprise a relative small percent of project cost, but they have a large impact on:

■ Plant design effi ciency Technical risk and complexity Engineering schedule Design cost.

Fig. 1 – Developing technologies and capabilities into solutions.

Integratedautomation

Safetysystems

Diesel and dual-fuel engines

Powerdistribution

Asset management

Metering

Power management

Propulsionsystems

Flow meters Tank monitoring

Projectengineering

Power drives

Processsensors Valves

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■ Construction performance Risk and complexity Installation schedule Installation cost.

■ Start-up execution Plant commissioning and start-up Schedule Cost.

Scope, time, quality, and resource and procurement management are all crucial elements in the fast-track nature, and highly competitive market demands, of these FPSO projects.

By taking responsibility for electrical, instrumentation, automation, and telecom solutions (EICT), Wärtsilä and Emerson together become a vital partner in the engineering and management of the project. The exchange of information between stakeholders and topside EPC (engineering, procurement and construction) contractors, package unit suppliers, the conversion yard, and others is better managed, and any gaps between engineering and execution can be bridged.

Project execution During project execution, the alliance acts as the integrator and interface manager, performing the engineering for the complete EICT scope. This is done in structured processes, is ISO 9001 quality assured, and makes use of an advanced object oriented engineering tool COMOS, as well as project management tools. These

tools provide access to global resources, all of which follow the same procedures, have uniform marine and offshore standards, and talk the same engineering language.

For all alliance projects, Wärtsilä and Emerson use a PMI (Project Management Institute) gate model for sales and project execution. The model has different stages, namely initiation, planning, execution and control, and closing. The project management teams become involved during the early stages of the sales process to ensure that customers are offered the best solution.

This means that the customer needs a purchase agreement with just one supplier for engineering, electrical systems, the safety & automation system, and telecoms, covering:

■ System and detailed engineering (hull) ■ Interface management ■ Delivery of systems and products ■ Relevant 3rd party suppliers ■ Commissioning and start-up ■ Operational support.

A common databaseCommunication and interfaces are vital but challenging. The answer has been to convert the FPSO into a “digital plant”, whereby the owner and all the major vendors and suppliers work using a common tool. A single database is used for instruments, electrical consumers, control system components, and the process equipment.

This saves time, produces correct information, and since the system is always being updated, it is easy to search and navigate. This in turn leads to a reduction in engineering man hours, reduced commissioning time and cost, faster and safer changes, fewer engineering errors, a reduction in handover cost, more readymade interfaces, and safe and effective modifications.

Fig. 2 – By combining Wärtsilä and Emerson offerings, the alliance becomes an important partner in fast track conversion projects.

Major equipment

Construction

EngOtherequipment

Wärtsilä and Emerson= 10–30%

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OPERATIONAL PERFORMANCEIn today's offshore production facilities, experienced and certified personnel are essential for effective and safe operation. But since finding the personnel with the right skill levels is increasingly difficult, it is essential to utilize the existing resources in the most cost effective way.

With PlantWeb technology and the Asset Management Portal, the Wärtsilä-Emerson integrated Remote Asset Management Centre can provide a safe and cost effective solution for managing, maintaining, and monitoring a customer’s critical assets. By integrating this service within the customer’s organization, the alliance is able to simplify the daily management of assets. This benefits the customer in the following ways:

■ Process availability. Predictive intelligence helps detect and avoid causes of equipment failure that could lead to unplanned downtime. Product specialists are available 24/7.

■ Maintenance efficiency and effectiveness. Potential equipment issues are detected and diagnosed before they affect process performance.

■ Optimizing of offshore and onshore maintenance activities. This ensures efficient use of resources by using land based asset management, condition monitoring and performance analysis.

■ Regulatory compliance. Companies can provide alert tracking, calibration records, and detailed audit trails of operations.

■ Throughput and yield improvement. Early warning of potentially reduced operating conditions will minimize downtime.

■ Increased quality. Instruments and equipment are easily maintained to perform at their optimal level.

UPGRADES AND MODIFICATIONSWärtsilä and Emerson are able to access the plant at any location or offshore site. The remote diagnostic centre’s Integrated Automation System/Integrated Control and Safety System infrastructure allows small modifications and upgrades to be made anytime. The customer benefits through the remote implementation of changes and improvements to the process onboard, thus reducing costly trips, improving response time and leading to higher availability of the installation. Other benefits include the remote tuning of control loops, the implementation of advanced control/regulating strategies, operational online support to remove process bottlenecks, and online upgrades without production shutdown.

For decades, both Wärtsilä and Emerson have been major suppliers of products and technologies within the marine and offshore industries, and have a long history of supplying products and services to both FPSO new buildings and conversions globally. Their focus today encompasses all offshore production units, including oil and gas as well as floating LNG units, and is aimed at meeting fully the demands of their customers.

Plant Web® is a digital vessel architecture that delivers proven results, and the DeltaV system makes it easy. Designed withthis digital architecture in mind, the DeltaV system fully integrates “Smart Plant” capabilities including HART®, FOUNDATION™field bus, high speed discreet busses, embedded advanced control, and advance unit and batch management. The seamless, intelligent field integration provides an infrastructure for advanced applications, such as AMS Suite - an intelligent device manager for quick, easy device re-ranging, configuration and diagnostics. The results are better process efficiency and reduced process variability.

PlantWeb is a digital architecture that uses the power of field intelligence to improve plant performance by delivering accurate, actionable information.

Smart asset optimization

Smart remote automation

Smart digital control

Smart measurement

Smart final control

Smart safety

Smart machinery health

Smart analytical

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REFERENCE: THE WÄRTSILÄ-EMERSON ALLIANCE FPSO PROJECTS

FPSO CONVERSION “PETROJARL CIDADE DE RIOS DAS OSTRAS”

FPSO CONVERSION “PIPA 2”

FPSDO VESSEL “MPF-01”

FPSO CONVERSION “YÙUM K'AK'NÁAB”

Scope of supply: Power station Power distribution Integrated control system, incl. PMS and safety systems Electrical propulsion system AC Drives for drilling applications Shipowner: MPF Corp. Shipyard: To be decided Delivery: 2008

The world’s fi rst purpose built DP FPSO.

Scope of supply: Power distribution and control Power management Low Voltage switchboards and UPS Shipowner: Bergesen Worldwide Off shore Shipyard: Sembawang Shipyard Delivery: 2006

The world’s largest FPSO conversion. The fi rst FPSO to be deployed in the Gulf of Mexico, serving as a hub in the area and acting as an export terminal.

Scope of supply: Integrated engineering Diesel engines and generators Thruster systems Power distribution Safety and automation system Commissioning / start-up Shipowner: Dynamic Producer Inc. Shipyard: Sembawang Shipyard Delivery: 2009

The world’s largest drill ship and multipurpose FPSDO.

Scope of supply: Power station Power distribution Safety & automation system Telecommunication incl. navigation Total responsible for EI&T Commissioning /start-up Shipowner: Teekay PetroJarl Shipyard: Remotova Gdansk Shiprepair Yard Delivery: October 2007

The fi rst Wärtsilä-Emerson FPSO in Brazil.