FOR uSeRS OF KONgSBeRg PROductS ANd SeRviceSThe world’s second largest shuttle tanker operator,...
Transcript of FOR uSeRS OF KONgSBeRg PROductS ANd SeRviceSThe world’s second largest shuttle tanker operator,...
FOR uSeRS OF KONgSBeRg PROductS ANd SeRviceS
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tHeMe energy & determination
The FULL PICTUREmagazine
chevron Shipping dual-fuel dilligence
Samsung Heavy industries Frontier spirit
Nexus Floating Production the industry’s best bet
golar LNg LNg in the fast lane
Bluewater the trailblazer
Hoegh LNg Finding the better way
“We did things on speculation. We had the guts.”
Svein Olsen, President & CEO, Aker Floating Production
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We in Kongsberg Maritime are engaged in a hearts and minds
campaign. For the shipyards and contractors who devote vast
engineering brainpower to deliver amazing new products faster
and cheaper to the market, the choice of controls partner is
critical. They need someone who understands and supports their
way of thinking, in terms of functionality, delivery time, integra-
tion and commissioning.
For the ship- and rig-owners, and their operators, charterers
and maintenance teams, much of the same thinking applies, but
they have additional concerns. How easily will these units be
operated? How will they hold up in harsh conditions? Will main-
tenance and support be rapid, spare parts readily available and
training easily executed? Again, control systems are integral.
This issue of The Full Picture features FPSO contractors that
are rewriting the rules for how such a unit can be built and how
it can perform. Aker Floating Production calls both its FPSO and
its philosophy ‘smart’ and the company is working closely with
key suppliers like KONGSBERG to create a supersonic produc-
tion schedule. Meanwhile, Bluewater stipulated only one vendor
for its top-shelf Aoka Mizu FPSO: KONGSBERG.
We also spoke with a number of LNG shipping companies
who are striving to work their way up the value chain, and who
are using integrated controls and gas management systems from
KONGSBERG to control innovative new storage and delivery
solutions. An owner-operator like Chevron Shipping Company
chooses vendors for its newbuildings with a view to a long life
of operations. After extensive study, their engineering team for
automation chose a full picture delivery from KONGSBERG.
From Chevron’s headquarters on the US West Coast to ship-
yards up and down Asia’s eastern edge, we witnessed an aston-
ishing level of energy. The maritime and energy industries are
in an unparalleled phase of activity driven by high energy prices
and massive global trade. Together with our key customers and
suppliers, we are determined to support the construction and
operation of ships and rigs at the forefront of this market.
Therefore, we’ve dedicated this issue of The Full Picture mag-
azine to Energy & Determination. These are valuable resources
that are in great demand today.
GUNVOR HATLING MIDTBØ
Kongsberg Maritime, Vice President - Communication
EDITORIAL STAFFGunvor Hatling Midtbø Kongsberg Maritime, Vice President [email protected]
CONTRIBUTORSChristina [email protected]
Saul [email protected]
MANAGING EDITORSBLUE International Communication
EDITORIAL PRODUCTION & GRAPHIC DESIGNBLUE International Communication
COVER PHOTOAnnar Bjørgli
PRINTINGMediehuset [email protected]
PHOTOSAnnar Bjø[email protected]
Ken Ng [email protected]
Arild de Lange [email protected]
Hans Verleurwww.hansverleur.com
M. Christine Torringtonwww.sfphotopro.com
Ole Muskenwww.musken.com
Nina Rangøywww.ninarangoy.com
Morten Rakkewww.rakke.no
Christina FjellstadKONGSBERG
COPYRIGHTKongsberg Maritime AS
ADDRESSKongsberg Maritime ASKirkegårdsveien 45P.O. Box 48NO-3601 KongsbergNorwayTelephone + 47 32 28 50 00Telefax +47 32 28 50 [email protected]
2 Global Full Picture
4 Expanded Offices
6 Singapore: Determined to lead
FPSO FEATURE 8 Aker Floating Production: Smart. Supersonic.
14 Bluewater: The trailblazer
18 Nexus Floating Production: The industry’s best bet
GAS FEATURE 22 Höegh LNG: Finding the better way
26 Chevron: Dual-fuel diligence
29 Golar LNG: LNG in the fast lane
32 Knutsen OAS Shipping: Advanced technology
35 Douglas-Westwood: A matter of scale
PARTNER FEATURE 38 Samsung Heavy Industries: Frontier spirit
41 Yantai Raffles: Great lift, great leap
44 Hamworthy Combustion: Responsibility follows supply
46 Jurong Shipyard: Fast tracked at Jurong
DETERMINATION 49 Determination: Customer support and projects
TRAINING 52 New navigation training
SUPPORT 56 Customer support in Singapore
57 Global support and Expo
01/08THE FULL PICTURE MAGAZINE
The Full Picture Magazine is a magazine for users of KONGSBERG products and services. For a complimentary copy of the magazine, please contact Kongsberg
Maritime AS: km. [email protected] Full Picture Magazine is also available in pdf-format at www.km.kongsberg.com
01/08
The FULL PICTUREmagazine
Svein Olsen, President & CEO, Aker Floating Production
Contents
tHeMe intelligent enginestHeMe energy & determination
The world of this issue of Full Picture magazine stretches from Chevron Shipping Company on the US west coast
to Samsung Heavy Industries in the Far East. We explored FPSOs under conversion in Singapore, strolled with the
CEO of Golar LNG through London’s Canary Wharf and braved Norway’s coast in wintertime to visit Knutsen OAS.
The Full Picture spans the globe, because our customers do.
USA
San Ramon, CaliforniaChevron Shipping CompanyP. 26 -28The in-house shipping company of oil major Chevron has ordered two dual-fuel diesel electric LNG carriers from Samsung Heavy Industries. We talked to their head of projects and their manager for controls.
AmsterdamBluewaterP. 14-17Bluewater is one of a small constella-tion of high-end FPSO builders. Their latest, Aoka Mizu, is what they call a trailblazer. We met President and CEO Hugo Heerema and his vice president for floating production in Amsterdam, and the project manager on location at the Sembawang shipyard in Singapore.
NetheRlANdS
Spijkenisseexpanded KoNgSBeRg officeP. 4-5KONGSBErG opened a new office in the Netherlands in January 2008
londongolar lNgP. 29-31Golar LNG is changing gas shipping by converting the world’s first FSrU (Floating, Storage & regasification Unit) at Keppel Shipyard in Singapore. We met the CEO in London and the project man-ager in Singapore.
UNited KiNgdom
Canterburydouglas-WestwoodP. 35-37We met the energy analysts of Douglas-Westwood at their headquarters in Canterbury, UK, as they celebrate their 500th deal.
Poolehamworthy CombustionP. 44-45A technology leader and innovator in gas combustion units, Hamworthy Combustion’s richard Price spoke with the Full Picture about the company’s tight relationship with KONGSBErG.
Global Full Picture
exPANSioN
The FULL PICTUrE magazine 01/08
3
mumbaiexpanded KoNgSBeRg officeP. 4-5KONGSBErG has expanded its presence in India to support rapidly growing opera-tions there.
iNdiA
Jurong Shipyard P. 46-48The Jurong Shipyard works closely with KONGSBErG on its builder-furnished bridge. We talked to leaders in the offshore department about the recent delivery for Seadrill and others.
SiNgAPoRe
Singapore maritime Foundation (SMF)P. 6-7Singapore’s public and private interests have joined to drive maritime develop-ment in this naturally-gifted shipping capital. We talked to SMF’s director about their determination.
expanded KoNgSBeRg officeP. 4-5KONGSBErG has moved into a large new facility in Singapore to support strong orders there.
haugesundKnutsen oAS ShippingP. 32-34The world’s second largest shuttle tanker operator, Knutsen OAS has moved deci-sively into the LNG market with an order for five carriers at DSME (Daewoo). We met the managing director and LNG project manager to talk integration.
NoRWAy
osloAker Floating ProductionP. 8-13Led by industry veterans, Aker Floating Production is redefining how FPSOs can be planned and built. We met the execu-tive team in Oslo and the project team at the Jurong Shipyard in Singapore, where Aker FP’s Smart 1 is under conversion.
oslohöegh lNgP. 22-25One part floating terminals, one part arc-tic LNG, one part LNG FPSO: This com-pany plays with the value-chain recipe. We talked to CEO Sveinung Støhle and project boss Tony Armstrong.
ArendalNexus Floating ProductionP. 18-21Merging expertise from several contrac-tors, this little company is building two harsh-environment FPSOs at Samsung Heavy Industries. We talked to CEO Anders Holm at their headquarters in Arendal, Norway.
exPANSioN exPANSioN
geoje islandSamsung heavy industries (Shi)P. 38-40SHI is building some of the market’s most interesting gas and offshore projects today. We talked to Sang-Hoon Bae, Vice President for Outfitting Engineering at SHI about the yard’s capabilities.
KoReA
Busanexpanded KoNgSBeRg officeP. 4-5Kongsberg Maritime Korea has opened a gigantic new headquarters, with full training and production facilities.
exPANSioN
yantaiyantai Raffles ShipyardP. 41-43Yantai raffles has won big orders from Awilco Offshore, Sevan Marine and Frigstad Offshore. We talked to brothers Brian and Julian Chang at their offices in Singapore and Yantai.
ChiNA
2
THEME Energy & Determination
Expanded OfficesKongsberg Maritime is growing rapidly in markets from South America to the Middle East and particularly
Asia. We’re steadily expanding our presence in new markets. The goals: Efficient local solutions for produc-
tion of hardware and software, increased site presence at key yards and fabrication sites, tight customer
support where our customers operate and close co-operation with our customers in design and product
development.
NETHERLANDSAs a result of rapid growth during the past few years, Kongsberg
Maritime Holland BV opened new and improved offices in mid-January.
“Kongsberg Maritime Holland now has the facility needed to grow along
with the customers and secure the best support,” said Dag P. Pettersen,
General Manager of Kongsberg Maritime Holland. The new building
features 1135 square metres over two floors. The ground floor contains
stock, workshop, demo and test areas as well as office space for service
engineers, while the second floor comprises a reception area, a confer-
ence room, a canteen and also office space for sales and administration.
KOREAKongsberg Maritime Korea opened a new purpose-built headquarters in Jungkwan, northeast of Busan, South Korea in December 2007. The company
has grown dramatically in the past few years. Larger and more sophisticated office, warehouse, assembly, testing and training space will ensure that
KonGSBerG meets the requirements of the growing Korean shipbuilding industry now, and in the future.
“We need to carry out more work locally in order to match Korean shipyards’ ever improving productivity and to reduce lead times from contract to de-
livery,” said Steinar Gran, President, Kongsberg Maritime Korea.
SINGAPOREKongsberg Maritime Singapore opened a brand-new 3,000 square
metre office in mid-2007 at the Secom Building, with rapid access to
Singapore’s many shipyards. This company saw its business triple from
2005 to 2006, and then jump up again in 2007. The company’s success
builds on its ability to deliver according to the needs of the country’s
busy ship repair and fabrication yards, local customers and owners.
The new office features expanded production space, giving Kongsberg
the ability to complete jobs off-site and deliver to the yard when
they’re needed. Additional improvements include a dedicated training
facility, greater conference facilities and room for the office to grow.
The office completes FAT tests, and is expanding its service and sup-
port staffs due to increasing work at shipyards and on-site throughout
the region.
“This market is growing powerfully as local offshore owners increase
their investments and as foreign owners increasingly prioritise a pres-
ence in Singapore. We’ve been present here for 20 years, and we’re
proud to be a Full Picture office for Kongsberg Maritime in this dy-
namic country,” says Managing Director egil Østlid.
INDIAKongsberg Maritime has expanded its presence in India considerably.
The office now supports process control and process simulation teams.
A second department works on software development for Technology
Base. This office has grown from 4 employees in early 2006, to 29
today and plans for a total staff of 45 by year’s end. Much of the
growth in India is due to increased energy-related business and ship
traffic.
From top left (clockwise): The new site for Kongsberg Maritime’s of-
fice in Singapore has an ideal location in the Secom building. The office
was opened on 8 August, 2007 at a ceremony attended by the Royal
Norwegian ambassador to Singapore, Enok Nygaard (in suit), and
special guest Thea Elisabeth Røed Sørensen, in traditional Norwegian
costume. Egil Østlid is the director of Kongsberg Maritime Singapore.
Antoney Wellesley is regional manager at the Singapore office.
6
THEME Energy & Determination The FULL PICTURE magazine 01/08
7
Shipping interests in many countries look with envy at the
situation in Singapore. Here is a country that – rather than
searching for ingenious ways to milk the industry for tax
revenue – invests heavily to bring in new shipping compa-
nies and talents.
The engine that drives Singapore’s efforts to become what
it calls an International Maritime Centre is a public-private
partnership called the Singapore Maritime Foundation.
Along with a board consisting of some of the country’s most
influential names in shipping, the organisation is led by a
former Director General of Singapore’s Ministry of Trade and
Industry – David S.S. Chin.
“We were founded in 2004 to champion Singapore as
a shipping centre within and outside the country. We are
funded by the government, but backed by the industry. As
a result, we manage to create a shared platform for growing
the industry here. We’re all determined to reach the same
goal: Making Singapore an international maritime centre,”
said Chin.
Take nothing for granted“People in Singapore are not sheltered. They understand that
what they have doesn’t come by itself. Work hard or you
won’t make it. This creates its own kind of determination, a
special focus,” said Chin.
Singapore got a fortuitous start as a shipping hub. For over
a century, it was the primary logistical post of the massive
British trading empire in Asia. In the 1950s, the oil companies
came, setting up their refineries here between the Middle
east and the markets in Japan and Korea. Ships steaming
back from Japan were aired out and safe to repair by the
time they reached Singapore, powering the growth of its re-
pair yards. Increasing offshore work and the gradual influx of
shipowners further powered the country as a maritime capi-
tal.
“In the early 90s, we established an attractive tax scheme,
which has since attracted several shipowners. These, in turn,
create more shipping business. Two years ago we addressed
ship finance in the hopes of facilitating easier financing of
new tonnage. Hopefully, this will boost our growth in bro-
kering, chartering and finance,” said Chin.
Feeding the furnaceChin and the Singapore Maritime Foundation have put their
focus on three areas: International promotion and develop-
ment, marketing the industry to young job-seekers and stu-
dents and profiling the industry to the people of Singapore.
Many outside of Singapore would be surprised to hear that
promotion is as much a domestic issue as an international
one.
“We are focused on maintaining local support and ensuring
a strong supply of talented people to the industry, both from
here in Singapore and from the surrounding region,” said
Chin, who has plans to go to all of Singapore’s junior colleges
to speak about the value of a career in the shipping industry.
You can measure Singapore’s determination – and Chin’s
staff does – in the form of key performance indicators like
the number of shipping companies based there, amount of
cargo moved through the port, employees working in ship-
ping, etc. But, as Singapore’s public and private leaders be-
hind the foundation have clearly understood, determination
is less about what you get out than what you put in.
Determined to LeadLong a hub of ship supply and repair, Singapore is on the rise as a centre of high-end shipping services. Leaders public and private are determined to position the country as one of a handful of global shipping capitals.
“We’re a small country. We have to work hard.” – on Singapore’s position
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LEANING EASTSingapore’s fate rises with the surge in Asia’s shipping fortunes
• Asians control 40% of the world’s shipping fleet, and 51% of bulk carriers
• 13 of the top 20 container line operators are Asian
• 9 of the top 10 container ports are in Asia
• Most of the world’s ships are built in Korea, China & Japan
• Asian nations (Philippines, India and China) supply most of the world’s seafarers
“For every container ship operating in the world, another half a container ship of similar capacity is under construction. There are now more LNG/LPG carriers on order than there are floating.” – on market growth
Article by THE FULL PICTURE MAGAZINE / Photo: Ken Ng Liong
David S. S. Chin, Executive Director, Singapore Maritime Foundation
8 9
Arne Tørnkvist, one of the triumvirate that founded Aker
Floating Production, likes to cite the adjective reliance
Industries, which has contracted the first SMArT FPSo, uses
to describe the speed of the project: Supersonic. A quick look
at the company’s, and this project’s, timeline (shown above)
would be appropriately followed by a discreet…boom.
Fast? Actually, it’s astonishing. Supersonic. Smart 1 will
be pulling up oil at a time when most builders would still be
languishing in engineering. This speed is itself a value for the
customer. If Smart 1 is quicker to first-oil by one year, and it
pulls 60,000 barrels a day at a conservative value of USD 60
per barrel, well, anyone can do the math.
Aker FP has made the schedule possible by turning con-
ventional FPSo thinking on its head. While many builders
start with an eye on a specific oil field, Aker FP started with
an eye on the market. They started their engineering based
on specifications that would match the needs of a broad
number of customers and fields. Smart 1 began life as a ge-
neric middle-tier FPSo suited for benign waters. Check out
Aker FP’s SMArT specifications (below).
olsen, Tørnkvist and the third member of the triumvirate,
Mikkel Martens, made their reputations developing the con-
cept of the generic FPSo. With Aker Smart 1 (and Smart 2
& 3, which will immediately follow), the trio have arguably
perfected it. Along with the generic specifications, the smart
concept is fully modular. Skids for Smart 1 are coming from
fabrication yards from norway to the Middle east, Malaysia,
Thailand, Batam and Singapore.
A contracting strategy based on tight partnerships is the
final link to the smart concept. From day one, Aker FP was
determined to exploit the engineering capacities of key sup-
pliers around each individual module. rather than dictating
to suppliers, Aker FP has asked them to do what they do
best, and engineer the solution that fits. on top of this all-
star team of suppliers, Aker FP’s role is as manager of risks
and interfaces.
reliance’s demands for Smart 1 were on the high side.
Aker FP simply added additional process units to the modular
design – problem solved. It’s the kind of plug and play think-
ing they’re keen to show off. Another key to winning the
reliance contract was Aker FP’s ability to deliver the entire
subsea infrastructure as part of one package. Through sister
company Aker Kvaerner Subsea, they’re providing the sub-
sea, and, through Aker Borgestad, the operations – all from
one supplier.
So many aspects of the Smart concept are brand new, and
they’re best explained by the men behind it themselves. Here
are their comments on the Smart philosophy, the FPSo mar-
ket, contracting, the oil market, technology and partnerships.
Strictly speaking a new kid on the FPSo block, Aker Floating Production boasts some of the most experienced players in the business. These veterans are applying all of their collected wisdom in their SMArT FPSos, and demonstrating what can be done.
Get SMART. Go Supersonic.
“As new drilling rigs enter the mar-ket, the greater the [FPSO] demand. Because drilling rigs don’t produce oil or generate cash flow. They just cost money.”
– Aker FP President & CEO Svein Olsen
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Aker FP collected data on FPSo specifications from 30-40 oil companies, com-
pared it with the kinds of field characteristics where Aker FP see the greatest
contribution to future oil and developed its generic “smart” specifications. Aker
FP calls it flexibility by design.
Here are some of the results:
oil production capacity: 60,000 barrels/day up to 120,000
Water production: 50,000 barrels/day up to 100,000
Gas production: up to 6 million m3/day
Crude temp: 20 to 90º C
Mooring: Spread, with option for turret mooring
riser balcony capacity: 12 risers/umbilicals (extends to 30)
SMART SPECIFICATIONS
Article by THE FULL PICTURE MAGAZINE / Photo: Annar Bjørgli and Ken Ng Liong
Aker FP raises USD 150 million in a private placement, and purchases three tankers for conver-sion
Aker FP signs contract with Jurong to convert FPSO Aker Smart 1
Aker FP orders the pro-cess separation module
2006 2007
Aker Floating Production (Aker FP) established; Svein Olsen is CEO
1st
quar
ter
Apr
il
June
July
Aker FP also places orders for long-lead items (such as generators)
Aker FP signs a LOI with Reliance with order to proceed
Reliance Industries contracts first FPSO Aker Smart 1 for operations in India First oil (projected)
Janu
ary
Febr
uary
May
2nd
Qua
rter2008
Conversion of Aker Smart 1 begins at Jurong Shipyard
THEME Energy & Determination The FULL PICTURE magazine 01/08
The Aker Floating Production executive team (from left):
Mikkel Martens, Executive Vice President and Commercial
and Operation Director; Svein Olsen, President & CEO; and
Arne Hygen Tørnkvist, Executive Vice President, Technical
Director and Deputy CEO.
10
THEME Energy & Determination The FULL PICTURE magazine 01/08
11
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On standardizationTørnkvist: “We don’t sit around by ourselves deciding how
everything will look like. We go to main suppliers and we
see where the center of gravity of their main portfolio is, so
to speak. Then we make a concept based on what is already
standard in the business. We are quite flexible about what
we really want to have. We see what the customer wants,
build a spec, talk to suppliers and find a good match.”
olsen: “The specification isn’t designed to be perfect, but
80 to 90 per cent fit for purpose. Good enough. We build in
flexibility. We prepare certain standards, and then the cus-
tomer can add on.”
On managing suppliersolsen: “We trust our suppliers. And they provide perfor-
mance guarantees. If they don’t deliver, they’ll be out next
time. Many buyers don’t work this way. Say they want a
crane. They make a crane committee. They bring in 10 guys
making specifications. By the time they’re done, the suppli-
er can no longer take the operating risk. The documentation
requirements have tripled. Costs and delivery times triple.”
Martens: “Take the helideck for Smart 1. We’re having it
fabricated in Malaysia. Another company called us saying
they have a better solution: lightweight, high-tech alumi-
num. now, why do we need a lightweight helideck on an
FPSo? We have all we need to hold up the weight. And we
got a heli-deck for one-third the price.”
On Aker FP’s expanded roleolsen: “[For reliance] We’re supplying all these compo-
nents, christmas trees, controls, risers, infield flow lines,
subsea manifold, delivery and installation along with instal-
lation of the FPSo. Previously oil companies took that risk.
now we’re taking that risk. We’re making a one-stop-shop.”
olsen: “We take the risk of not being paid before first oil
almost. If [the FPSo] is there and subsea is delayed, it’s
our risk. Buy by having sufficient control, Aker Kvaerner
Subsea as part of our system, we have more control. With
this spirit of co-operation, one-stop shopping will make us
attractive. It’s a competitive edge.”
On the oil majorsolsen: “We’re not going for the big oil majors. We leave
that to our competitors. We say no to many oil majors. We
stick to large independents. There is so much demand com-
ing up in this area.”
olsen: “Increasingly, we’re going to be pushing the oil
companies. They will need to come to the contracting in-
dustry to find solutions, new conceptual ideas, rather than
inventing things themselves, as they’ve done up to now.
Contractors will get more important. As the lack of re-
sources worsens, oil companies will focus on finding oil and
building reserves. They’ll leave it to contractors to own and
operate. This will lead to new commercial structures.”
Aker FP Executive Vice
President, Technical Director
and Deputy CEO, Arne
Hygen Tørnkvist came to
Aker Floating Production
one month after Svein
Olsen. Tørnkvist had been
Technical Director at
Bergesen Offshore since its
start in 1999. Previously,
he worked at Det Norske
Veritas in Norway and in
Korea. “The challenge, in
this market, is to find the
quickest way to the goal.”
Aker FP Executive Vice
President and Commercial
and Operation Director
Mikkel Martens came to
Aker Floating Production
after leading Vetco Aibel’s
work on technology,
products and systems as
Senior Vice President.
Prior to this, he worked his
way up in ABB, until he
led its Marine & Offshore
business. “Our people are
extremely committed and
dedicated. We couldn’t do
it without them.”
On relationshipsMartens: “It’s important to work with people you know.
You will always run into problems, and then it’s good to
know who’s good at what. You work with people you
trust.”
olsen: “And contractors can trust us. We’re not undermin-
ing them with countless benchmarkings. We bring them in
as part of the bidding team. If we win, they’ll get the con-
tract. It creates loyalty.”
Tørnkvist: “We’ve been around a long time and we haven’t
exploited the market when it was tough for yards and sup-
pliers. We’ve worked with Jurong for many years. Let me
tell you, not many companies could have gotten two slots
with them last year. We did. We have behaved over the
years. That’s created strong ties.”
On Kongsberg Maritimeolsen: “I’ve always liked KonGSBerG , even way back when
I was with Tentech. You have so much in KonGSBerG .
I’ve always been impressed. When we were working on
Petrojarl, we were the first to put the production turret in-
side the ship. In that starting phase, KonGSBerG took part
in the design of the turret.”
Martens: “It’s important with an international network.
We’ve ordered many man-hours from KonGSBerG during
commissioning and start-up in Singapore. It’s great that
there is a strong local presence to cover this.”
On the FPSO marketolsen: “We believe benign areas will make the biggest
contribution to new oil. And if you look at all the drilling
programmes going on, it’s here [middle tier projects of large
independents on large fields] you’re going to need new
FPSos. These guys are putting out 400 or 500,000 dollars a
day to drill. They want their money back. The only way to
do that is produce oil, and fast. We’re just entering a long
cycle of strong opportunities for FPSos, as a result of drill-
ing activities.”
olsen: “I don’t think [the statistics for new FPSos coming
online next year] is feasible. It’s a constraint in the market.
We’re doing well in this market. Some owners might have
thought they’d want something else, but this is available.
And they’ll get it one year earlier, so they’ll think twice.”
Martens: “This is our offer. We have the FPSo, we have the
slot at the yard, we have fabrication capacity, we have sup-
pliers in place, so we can deliver with the shortest possible
delivery time.”
Aker FP President & CEO
Svein Olsen is one of those
leaders who loves to try new
things. Among the founders
of Tentech International in the
late 1970s, he was involved in
the design of the first FPSOs in
the North Sea. This work led
to a large number of success-
ful FPSOs, including Petrojarl
I, Gryphon A and the Norne
and Åsgard FPSOs for Statoil.
He has also developed FPSO
operations at Fred. Olsen
Production and Bergesen
Offshore.
“You put your money where your mouth is. We always did things on speculation. We had the guts. Then you get the attention.” – Olsen
“We focus on where we have an advantage. We don’t think so much about the competitors.” – Martens
“Nothing kills like conservatism.We don’t listen to experts. We listen to experience. Experts can be the biggest risk in this business.” – Olsen
12
THEME Energy & Determination The FULL PICTURE magazine 01/08
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The War RoomIt’s all well and good talking about supersonic project
speeds in the board room; it’s another for the project man-
ager on-site at the yard. The man assigned with the task of
keeping the Smart 1 project up to speed is Håvard Garseth,
Aker Floating Production’s project manager. We met him at
the Jurong Shipyard in December.
“We use the metaphor of being an army and attacking all
critical activities,” says Garseth. The army metaphor meets
reality in the concrete, or – to be more precise - steel form
of the “war room”. The war room is a couple containers
shackled together quayside at Jurong. Inside leaders from
Jurong, Aker FP, reliance and other key players hammer
out critical issues at a lightning meeting every morning.
“Supersonic project management is about creativity and
stamina. You can’t delay solutions. We focus on outstand-
ing issues, bring these to everyone’s attention, concentrate
on them, and move forward. Move to the next issue,” says
Garseth.
Garseth has combined responsibility for modules arriving
from Dubai, Thailand, Batam, Malaysia, norway and close
by in Singapore, as well as the mooring and installation
work going on at the same time at the field offshore India.
“KonGSBerG has participated strongly in the engineering
side of control and electro work. It’s been a good and close
relationship,” concludes Garseth.
If anyone in Aker FP understands the challenges of supplying
a supersonic project, Arild Hellem is the guy. He has responsi-
bility for the interfaces on Smart 1.
“This goes so fast. We hop over the normal FeeD phase
and go straight from drawings to fabrication. For Kongsberg
Maritime to do its job, they need to get into each organisation
producing modules and get the input they need to complete
their work and hand off this information to people in fabrica-
tion, operation and commissioning,” says Hellem.
Hellem recognizes that he is asking all of his suppliers to go
further, faster, than they might usually go on a project. Similar
projects are often completed with five or six times as many
purchasers and package engineers on a schedule two to three
times longer.
“In Kongsberg Maritime, we’ve gotten attention from the
right people. That’s been a critical question for many suppli-
ers – getting enough people with the right skills. our partners
in Kongsberg Maritime are listening and picking up the slack
where they need to. And all of our suppliers are gaining vital
experience, which may play off into work on Smart 2,” says
Hellem.
Hellem recognizes that what they are doing is a kind of ex-
treme sport version of FPSo production: “We’re a young com-
pany with tremendous experience. We can dare to do things
differently. And we can move at great speed.”
Smart 1 will be turret-moored to the
seabed, so it needs no DP nor navi-
gation systems. Aside from these
two, Kongsberg Maritime’s delivery
to Smart 1 is a “Full Picture” deliv-
ery. It includes:
• Process control system
• Fire and gas system
• emergency shutdown
• Process shutdown
• Power management system
• Vessel control system (ballast,
cargo, ventilation and utility)
• Information management system
• Cargo tank monitoring
For Kongsberg Maritime’s Project Manager Halvard Sagdahl,
the Smart 1 project has been a unique professional challenge.
“What’s special on this project is that we’re doing engineering,
production and installation all at the same time.” Imagine as-
sembling a bicycle while you’re riding it.
To cut time between production and commissioning,
Sagdahl’s team has finalised as much as possible off-site in
Singapore, so that the final product can be dropped in last-
minute.
“This isn’t your usual customer-vendor relationship. We
work as a team across the board. everybody is pro-active
on a project like this,” says Sagdahl. Kongsberg Maritime is
involved in process module construction worldwide, putting
special stress on logistics, coordination and project finance.
“We’re putting up extra manpower, either our own or
through sub-suppliers, wherever it’s needed. We’re dedicated
to Aker FP’s project goals, and we will, as a part of the team,
ensure that we meet the targets and make it a success,” con-
cludes Sagdahl.
Aker FP’s Project Manager for Smart 1 is Håvard Garseth. A petroleum engineer by training, Garseth has a broad background from work on drilling rigs,
in reservoir engineering, on platforms in the North Sea and on projects for the engineering industry. He has worked all over the world, but primarily in
Norway, in the Middle East and in Africa.
Aker FP’s Interfaces Manager for Smart 1 is Arild Hellem.
Focus: Interfaces
FPSOs Aker FP
ALL AT THE SAME TIME
Aker FP President & CEO Svein Olsen (right) and
Kongsberg Maritime Sales Manager Trond Brage Jakobsen
14
THEME Energy & Determination The FULL PICTURE magazine 01/08
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On FPSO companies owning
mooring technology
“I think it’s essential and crucial.
It’s not just because we’re like that.
You see a tendency in our business,
where – in the concentrations of
recent years – groups evolved that
own this essential mooring technol-
ogy. At a certain moment, [the tur-
ret] becomes such a critical part of
the FPSo that it isn’t logical to buy
it in as a third-party item. In ultra
deepwater, you can’t competitively
bid if you don’t own this mooring
technology.”
On the LNG FPSO
“Some say there will be demand for
150 over time. What is sure is that
the LnG FPSo will come. one group
will be first and it will be important
to be part of a leading group. It’s part
of our future.”
On building FPSOs on speculation
“We’ve built FPSo hulls on spec and
we own hulls that can be turned into
an FPSo. But building a complete FPSo
speculatively is a different ball park. To
be honest, we don’t believe in build-
ing a whole FPSo on speculation for
the high-end of the market. A low-end
FPSo for USD 80 or 90 million can still
be feasible. But then take a high-end
norwegian FPSo for USD 7-800 mil-
lion. To build what many fields might
need, you’ll build 30 per cent more
expensive. And then you’ll need very
broad shoulders to bear the financial
burden until the right project comes
along. The construction of the FPSo
is hardly on the critical path anymore.
That would be drilling and subsea.”
On conversion vs. newbuild
FPSOs
“nowadays suitable VLCC hulls from
the 70s are gone. VLCCs from the
80s aren’t suitable. In areas where
VLCCs are used for FPSos, you will
see more 90s vessels or newbuilds. In
high-end areas where Aframax sizes
are used, you see the use of high
class existing tankers or newbuilds.”
On owned vs. leased FPSOs
“If you have a field life of ten years
or shorter, then an oil company,
depending on its financial state, will
often choose a lease. Some choose
to prioritise exploration, and see the
FPSo just as a leased item. Some
choose to put a purchase option in
the contract. Leasing an FPSo limits
the downside risk for oil companies
due to the fact they can release the
FPSo after the initial minimum guar-
antee period, should the reservoir
appear to produce adversely.”
HEEREMA TALKS FPSOS
Hugo Heerema, Bluewater’s Ceo and President, welcomes
the Full Picture at Bluewater’s offices just outside of
Amsterdam on a rainy December evening. It is late, yet
there is no sense that activity at Bluewater’s office is taper-
ing off for the night. Construction of the firm’s latest FPSo,
Aoka Mizu, is in a critical phase at Singapore’s Sembawang
shipyard. Countless new development projects are under-
way simultaneously at Bluewater.
“Business is brisk now, but not as busy as everyone
would expect. And this isn’t just Bluewater; it affects ev-
eryone in this business. The FPSo market is strong. If we
don’t see 100 new FPSos in the next five years, we’ll see at
least 60. Decision-making at the oil companies, however, is
hampered by high costs and constraints in drilling and sub-
sea. Despite an oil price hovering around 100 dollars a bar-
rel, many oil companies do their economic analysis of new
projects at around 50, which – when taking the high costs
of services into account – appear marginal. The market will
catch up though,” says Heerema.
Perhaps much of the activity at Bluewater attests to a
massive positioning strategy. This is a company bent on
establishing an unparalleled reputation for technology.
“Technology is what drives us,” says Heerema. Bluewater
has won recognition with the supply of high-end, complex
turret mooring systems, and with impressive installations
like a loading tower at ice-prone Sakhalin for exxonMobil.
Presently, Bluewater is completing a tower mooring system
subject to violent forces for the world’s largest FPSo off of
China.
With Aoka Mizu, Bluewater positions itself as a cred-
ible player to deliver FPSos for the Gulf of Mexico or any
other harsh environment where the ability to disconnect
rapidly, sail away and then reconnect with minimal inter-
ruption is critical. This is one of the most technologically
advanced FPSos being built today, and Bluewater specified
KonGSBerG for control systems from top to bottom.
The TrailblazerAoka Mizu means “blue water” in Japanese. In the international language of FPSo, it means “first self-connecting, disconnecting FPSo on DP in the north Sea.” It’s another first for technology-driven Bluewater.
Article by THE FULL PICTURE MAGAZINE / Photo: Hans Verleur and Ken Ng Liong
Bluewater CEO & President Hugo Heerema
Bluewater Project Manager Neil Rothney
16
THEME Energy & Determination The FULL PICTURE magazine 01/08
17
Full Picture spoke with Heerema, Jesse van de Korput –
Bluewater’s Vice President for floating production and neil
rothney – Bluewater’s Project Manager for Aoka Mizu in
Singapore, about building the Aoka Mizu, Bluewater’s strat-
egy and developments in the market for floating produc-
tion.
Aoka MizuThe seventh FPSo designed, built and owned by Bluewater,
Aoka Mizu began life at a Japanese shipyard several years
ago. In April 2006, Bluewater successfully negotiated with
nexen Petroleum UK Limited to convert the Aoka Mizu hull
for production at nexen’s ettrick Field in the north Sea.
Based on the field requirements, Aoka Mizu won’t be the
largest FPSo, but, technically speaking, it is very complete
and advanced. It will feature oil separation, water injection,
gas export and gas lift. It will be certified to operate under
the world’s most stringent safety and operational require-
ments, the UKooA recommendations, UK HSe regulations,
as well as norway’s norSoK standard.
“no water will go overboard from this FPSo, which is
rare. It will all be mixed with seawater and then reinjected
into the subsea reservoirs,” says van de Korput. And, as
nexen is eager to get more reservoir data, the FPSo will
pull up 24 data trends, which will be stored for 30 days for
nexen’s geologists to analyze.
Among the most critical tests of Aoka Mizu’s perfor-
mance, and among its greatest assets, will be its ability to
disconnect without employing a diving boat, move away
and operate as a vessel and then reconnect without as-
sistance. even when diving boats are available (they often
aren’t, depending on where you are), they cost upwards of
USD 100,000 a day. An FPSo like Aoka Mizu is also much
quicker to get back into production after a weather-induced
interruption.
“Another advantage to self-disconnecting is quicker
modifications. We are already talking with nexen about
some modifications to Aoka Mizu in a few years. If we can
disconnect, go to a shipyard and get it done there, it’ll be
far quicker, safer and cheaper than doing it on-site,” says
van de Korput.
One control system“We chose to work with Aibel to take care of the whole
topside on Aoka Mizu. The only specification we made
with respect to vendors was the control system: We wanted
KonGSBerG. We prescribed KonGSBerG for everything
related to control to make sure the interface situation was
covered. We’re confident that it will be a fully integrated
system,” says van de Korput.
He continued: “We have KonGSBerG systems on three
FPSos, and have had good experience with them. This
experience was definitely a factor in choosing KonGSBerG.
In addition, we feel that KonGSBerG has shown flexibility
with respect to production schedules; they adapt to a shift-
ing time frame.”
It was a decision Bluewater’s Project Manager niel
rothney, finalizing Aoka Mizu in Singapore, is very happy
about. “As Project Manager, it’s far easier to have only one
vendor to relate to. KonGSBerG is without a shadow of a
doubt the best in DP; now we’ve brought them in to take
care of all of the controls. That way, we plan to have our
interface situation covered,” he said.
Leading or following?“our goal is to remain the technology leader. That will be
our distinguishing factor. Followers can do decent business,
but, in the end, a follower is also a profit follower,” says
Heerema.
Bluewater is particularly keen on the race to develop the
first LnG FPSo. The company is positioning itself vis-à-vis
the major groups working on LnG FPSo pre-FeeD projects
by focusing on critical points of the process. one such area
is the transfer of LnG from the production ship to the LnG
shuttle tanker via cryogenic hoses.
Another area where Bluewater may find a technological
advantage is in operating unmoored FPSos on DP. “We ran
our Munin FPSo unmoored on DP for 180 days with only
six hours of down-time for ConocoPhillips in China. They
were elated. We even did offloadings with the FPSo on DP
and the shuttle tanker connected. KonGSBerG did a great
job there,” says Heerema.
Heerema believes that DP FPSos may find the perfect
niche in deepwater areas such as the Gulf of Mexico. “In
early production and well testing, an FPSo on DP will be
perfect. oil companies need information on how the reser-
voir behaves before they invest in a large production sys-
tem.”
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nexen Petroleum has contracted Bluewater’s Aoka Mizu FPSo to
produce its reserves at the ettrick Field in the north Sea. The three
production wells tied back to the FPSo (as well as three planned de-
velopment wells and a water injection well) will lead to production of
up to 30,000 barrels per day.
Aoka Mizu FPSo
Main features:
• Lloyd’s register of shipping class notation, +100 AT, oil barge with
descriptive notations Pt higher tensile steel, increased scantlings for
longitudinal strength and fatigue for FPSo service in harsh environ-
ments, including norwegian, Canadian and west of Shetland waters
• Casing aft of the bow can accommodate a Bluewater internal discon-
nectable turret
• Bluewater provides all services from design to construction, commis-
sioning, installation, operations and field logistics
Deck payload: 8,000 tonnes
Storage: 600,000 barrels
oil processing: 30,000 bopd
Produced water: 20,000 bwpd
Gas lift: 18 MMscfd
Gas export: 20 MMscfd
offloading parcel size: > 500,000 bbls
AOKA MIZU AT ETTRICK
Bluewater Vice President for Floating Production
Jesse van de Korput
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For Bluewater´s Aoka Mizu FPSo, Kongsberg Maritime
is delivering “The Full Picture” - an integrated control
system, consisting of:
• navigation systems
• DP and thruster control
• Power management
• Vessel control
• Tank guaging systems
• Process control
• Safety systems (eSD, fire & gas, PSD)
• Information management
• operational support
THE FULL PICTURE ON AOKA MIZU
18
THEME Energy & Determination The FULL PICTURE magazine 01/08
19
nexus Floating Production sees great promise in the market for harsh environment FPSos. A coalition including Samsung, APL and KonGSBerG has started construction on what may be the oilindustry’s most sought-after floater.
The Industry’s Best Bet
“Simply put, APL saw an opportunity. Converting vessels
into FPSos on speculation is common. Practically none,
however, were prepared for harsh environment. The nexus
1 is just that. It is proven technology, prepared for differ-
ent topside needs, from a strong group of vendors,” says
Anders Holm, the Ceo of nexus Floating Production (nexus
FP).
APL created nexus FP in mid-2006 on the back of a
strong public offering. APL (now owned wholly by BW
offshore) still owns roughly half of nexus FP. The com-
pany ordered its first FPSo, nexus 1, from Samsung Heavy
Industries in 2006, and another, nexus 2, in summer 2007.
A newbuild FPSo with storage capacity of near 1 million
barrels and production that can stretch up to and beyond
120,000 barrels per day, nexus 1 qualifies as a top-tier
FPSo. It is equipped with a moderately-sized complete
topside process plant that can be easily expanded based on
modular design and dedicated areas prepared for future top-
side expansion.
“If you look at the market, prices are only increasing. We
are willing to make an investment in order to join the first-
movers in this market,” says Holm. As FPSo scarcity starts
to nip at the heels of oil companies, the courting of nexus 1
will begin in earnest.
Industrial partnership“The co-operation with Samsung is fundamental for us,”
says Holm. The alignment of Samsung and APL creates a
strong industrial collaboration. nexus FP’s approach has
been to act quickly, win competitive contracts with these
key partners and turn out a proven product for the harsh
environment market.
KonGSBerG, with contracts to Samsung and APL, is re-
sponsible for tying the whole facility together: one control
environment for three systems – hull, topside and turret.
“The control package with KonGSBerG through Samsung
was technically the best choice, and reasonably priced. We
can tell potential customers that the whole vessel is inte-
grated in a KonGSBerG environment, and that brand recog-
nition has real value for them,” says Holm.
nexus 1 will be ready for operation in harsh environment.
It has a double-bottom, double-side hull design, a raised
bow and stern, continuous green-water protection along
its sides and a high freeboard; the design life is based on
20-year operation in norwegian Sea environmental condi-
tions (100-year wave heights of 16.5 meters). Samsung is as
experienced as a yard gets at this kind of hull.
With APL on the ownership side, it is no surprise that the
FPSo’s turret is state-of-the-art. The disconnectable turret
mooring, located forward to aid weather-vaning, will allow
for operation in areas prone to iceberg or hurricane activity.
nexus 1 will be fully self-propelled with two independent
propulsion systems, as well as thruster-assist to ensure
heading during offloading.
The topsides facilities are being engineered to handle a
typical mid-size oil field with associated gas and water:
80,000 barrels of oil per day, 60,000 barrels of water and
1.5 MMscm of gas. The topside steel and utility systems
are prepared, however, to add modules for gas, water and
oil processing. All told, nexus 1’s topsides capacities can be
doubled without structural interventions.
Finally, management agreements with APL cover con-
struction supervision, marketing and operation of nexus 1.
Since BW offshore purchased APL, the mother company’s
marketing skills have also been brought to bear on nexus 1.
As the market ripensBecause nexus FP acted fast in a rising market, it has lower
project costs than its competitors. And the company will
have an FPSo prepared for operations in harsh environment
conditions when the number of these kinds of projects far
outpaces the number of units available.
A couple interesting graphs demonstrate nexus FP’s price
advantage. Both in terms of hull and topsides, nexus FP
has been able to realize significantly lower costs than its
peers, in recent years and in current new orders. The charts
Article by THE FULL PICTURE MAGAZINE / Photo: Arild de Lange Nilsen
Nexus FP CEO Anders Holm
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also demonstrate, particularly in hull prices, a sharp upward
trend that will further impact FPSo prices. [see chart: “FPSo
Market – significant increase in hull costs”]
A leading analyst estimated over 110 floating production
projects worldwide over the next six years. of these the
vast majority will be produced using an FPSo, and several
dozen of them are in harsh environment areas. The supply
of appropriate FPSos simply does not match up to demand
over the next five years.
“In the north Sea, we see more and more smaller oil
companies, particularly on the UK side, that are both eager
to produce known reservoirs and interested in a solution
whereby they lease an FPSo from a dedicated contracting
partner,” says Holm.
There are a number of increasingly compelling reasons for
oil companies to lease an FPSo. Shorter field life means a
leased FPSo generates less residual value risk. The smaller
oil companies looking to produce small and remote devel-
opments focus their capital on exploration, not production
infrastructure. Finally, many of these companies do not
have – and do not want – the large organisational structure
associated with operator-owned FPSos. [see chart: “Split of
global FPSo fleet by ownership]
nexus FP, APL and BW offshore are co-operating to
address growing interest in the market for the nexus FP
floater. Several placement studies for field developments
in harsh environment have been completed; prospects in
norway and the UK, as well as iceberg- or hurricane-prone
regions like Canada, the Gulf of Mexico and Australia
(where disconnecting is a must), are the most interested.
“We have a flexible solution with respect to topsides, so
there are a number of projects where we might win because
we have good timing,” says Holm.
19
0
20
40
60
80
1990 1995 2000 2005 2010Implicit price topside (USD/kg)
100
200
300
400
500
1990 1995 2000 2005 2010
Implicit price hull (USD/bbls storage)
FPSO market -significant increase in hull costs
Nexus Floating Production Ltd. www.nexusfp.no
PROJECT FINANCIALSFLEETCOMPANYHIGHLIGHTS MARKET
Each dot represents a selected historical project. Building costs are contractual building cost only. Inflation adjustment of 2% p.a. Source: Companies* Price level of Nexus II reflects 2005-2006 prices
Nexus*Nexus*
17
Expectedincrease in demand for leased FPSOsgoing forward:
- Shorter field life increases attractiveness of lease solutions (residual value risk)
- Small oil companies likely to allocate financial resources to exploration, not infra-structure
- Small oil companies have not organizati-onal capacity to controlinfrastructure Source: FPSbase, First Securities
FPSO market -trend towards more leased vessels
Nexus Floating Production Ltd. www.nexusfp.no
PROJECT FINANCIALSFLEETCOMPANYHIGHLIGHTS MARKET
24%31%
45% 45%
67%
76%69%
55% 55%
33%
1990 1995 2000 2005 Order book
Leased Operator owned
Split of global FPSO fleet by ownership...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................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The nexus FP strategy is to get a generic harsh environment FPSo to market…fast.
• Meets requirements of the most demanding operational conditions and regulatory regimes
• Designed for rapid deployment and sequential field development strategies
• State-of-the-art disconnectable turret mooring technology delivered by APL
• Large storage capacity enables operation in remote areas
• Hull and utility systems prepared for topside expansion
• Topside prepared for additional gas, water and oil processing (even GTL, heavy oil, etc.)
• Topsides capacity can be doubled
THE HARSH ENVIRONMENT GENERIC FPSO
FPSO Market – significant increase in hull costs
Split of global FPSO fleet by ownership
Nexus FP CEO Anders Holm (right) and
Kongsberg Maritime Sales Manager Cato Franck
22
THEME Energy & Determination The FULL PICTURE magazine 01/08
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Article by THE FULL PICTURE MAGAZINE / Photo: Ole Musken, Höegh LNG
Höegh LnG occupies the fifth floor of a large, modern office
building in oslo owned by its parent company, Leif Höegh
and Co. The company employs about 30 people (excluding
fleet services and marine personnel) who manage the com-
pany's fleet of five vessels plus 2 under construction, and
work to develop Höegh LnG's more ambitious projects.
Though relatively small, Höegh LnG is recognised as an
industry pioneer, launching its first LnG carrier in 1973.
The company continues to serve this growing market: In
october 2007, two of the most recent additions to Höegh
LnG’s fleet, Arctic Princess and Arctic Lady, began their
20 year operating contracts serving the Melkøya terminal,
which lies 340 miles north of the Arctic Circle.
But Höegh LnG is more than a shipping company. Indeed,
most of the company's senior executives have a background
in the gas industry, including Sveinung Støhle, Ceo of
Höegh LnG, who began his career in oil and gas and has a
master's degree in international business. "When I was ap-
proached by the company in 2005, the owners made it clear
that while shipping would remain a core competence, they
were seeking to expand the company's services beyond
transportation," he says. “I wanted to be a part of that pro-
cess.”
New market, new concepts Støhle explains that Höegh LnG’s focus on developing inno-
vative midstream solutions, many of which began before he
joined the company, have been driven by changes in both
the shipping industry and the LnG market. Increased global
demand for energy and the rising cost of oil has created a
booming market for LnG. At the same time, environmental
and security concerns, especially in north America, have ef-
fectively blocked the construction of land-based terminals.
In addition, energy companies have been seeking new
ways to access gas from smaller, offshore sites once con-
sidered too costly to develop. To reach these new resources
and growing markets, gas companies have increasingly
sought to outsource midstream activities so they can focus
on their core business – selling gas.
Changes in the shipping industry have also impacted
Höegh LnG. Today, newbuilding orders for LnG carriers are
at an all time high and in an industry dominated by both
european and Asian shipping companies specializing in LnG
transportation, competition for contracts has become fierce.
For a smaller player to compete successfully, Höegh LnG
must offer unique services. “Transportation is an important
part of our service offering," explains Støhle. "But to dif-
ferentiate ourselves from competitors, we have to offer an
added value to our customers.”
Forging links in the value chain To expand the scope of their offering, Höegh LnG is now
developing the capacity to offer energy companies produc-
tion, transportation, regasification services and access to
promising markets. "Increasingly, we see ourselves as part
of our customers' value chain,” he says. “That’s good busi-
ness, and will help us learn more about the needs of the in-
dustry than we would simply by providing transportation.”
At present, Höegh LnG has several innovative projects
in various stages of development. In 2005, Höegh LnG
ordered two Shuttle and regasification Vessels (SrVs)
from Samsung Heavy Industries to serve a deep water port
project off the coast of Massachusetts. Known as neptune
LnG, the project will be operated by Suez energy (north
America) and served by Höegh LnG and partner, Mitsui
oSK Lines. recently, the project won approval from US
maritime authorities, making it the first of its kind on the
northeast coast of the United States.
Developing key technologiesStøhle explains that the SrV is an LnG carrier equipped
with a dedicated regasification plant mounted on the fore-
ship. The SrV has a turret in the bow which connects to a
submerged buoy. The natural gas from the regasification
skids is sent through this turret, a riser and a subsea pipe-
line to shore. “By providing vessels capable of providing
transport, the storage and regasification of LnG, we offer
SUeZ a unique and valuable service,” says Støhle.
At a cost of USD 340 million each, the SrV project rep-
resents a significant investment. But it is a measure of the
company’s confidence in the concept that they ordered both
vessels a year before the project was finalised, and retain
firm options for additional SrVs. “There aren’t many yards
with the capability to build vessels of this level of sophis-
tication and these yards are running at capacity,” explains
Støhle. “We had to move quickly, or risk missing our win-
dow of opportunity.” Støhle adds that Höegh LnG is also
developing two additional deepwater port terminals; one
located in Florida (Port Dolphin) and one off the west coast
of the UK (Port Meridian), and is actively pursuing other
floating LnG projects in the Atlantic Basin – all projects
that will require additional SrVs or Floating Storage and
regasification Units (FSrU) , which are stationary floating
regasification terminals.
Ship-to-ship transferHöegh LnG is also developing a FSrU designed to provide
energy companies with more cost effective regasification
solutions and a new way to access promising LnG markets.
The process requires outfitting an existing LnG carrier with
regasification units, an LnG transfer system and a gas ex-
port system. The FSrU will be docked at a pier or moored
offshore, and the LnG shuttle vessel will moor alongside
the FSrU for ship-to-ship transfer of LnG. “Ship-to-ship
transfer requires some technical expertise and special equip-
ment,” says Støhle. “We were among the first to show that
it could be done, and recently, completed about 50 trans-
fers, effectively turning a challenge into a routine and gain-
ing valuable experience.”
Breaking new ground More recently, Höegh LnG has entered into agreements
with major contractors to begin the engineering and de-
sign for the industry’s first LnG FPSo. “We view the FPSo
project as a vital part of our strategy to offer a complete
offshore LnG supply chain,” says Støhle. The project will
include the development of an offshore classed structure
“We will combine our maritime experience and technical skill with our understanding of the gas industry to expand the range of our service offering.”
Sveinung Støhle, CEO of Höegh LNG
Finding the better way
With only five vessels in its fleet, Höegh LnG might be overlooked as a minor player serving a niche market. But a closer look reveals a company with ambitious plans to change how the gas industry thinks about the production, transpor-tation, regasification and deliv-ery of LnG.
Höegh LNG CEO Sveinung Støhle
24
THEME Energy & Determination The FULL PICTURE magazine 01/08
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with the capacity to treat and liquefy a well stream of about
2.5 billion cubic meters per year, which will give an annual
production of about 1.6 million tons of LnG. Støhle notes
that the project has already attracted interest from the in-
dustry. “We are already in discussion with several natural
gas resource owners, who have recognised our ability to
produce, transport, regasify and deliver their gas to the end
user market in one seamless LnG chain.”
Støhle is quick to point out that the company’s effort
to expand their service offering requires strong partner-
ships with suppliers. “our starting point is shipping, so we
build structures that move on water, are self-propelled and
conform to existing ship design standards,” he says. “But
developing these solutions requires the active participation
of suppliers who bring different skills and experience to the
project.” Vital components of various Höegh LnG projects
are supplied by a broad range of companies, including Aker
Yards, Samsung Heavy Industries, CB&I Lummus Global,
Hamworthy Gas Systems, Bluewater, DnV, Technip, APL,
and KonGSBerG, among many others.
A history of innovationHöegh LnG’s history with KonGSBerG goes back two de-
cades. Indeed, all of the company’s existing vessels rely on
KonGSBerG systems, and KonGSBerG equipment will play a
critical role as a systems integrator on the SrV project. “We
prefer to work with suppliers who have proven solutions,
and our long relationship with KonGSBerG has been an ad-
vantage,” Støhle says. “They know our business.”
For KonGSBerG, working with Höegh LnG has enabled
the company to access the LnG carrier segment. “Many of
the systems we’ve developed and marketed to the industry
have been enhanced by our cooperation with Höegh LnG,”
says Morten Stanger, sales manager for KonGSBerG. “We
view our partnership with Höegh LnG as the key to our
success in this industry, and look forward to working with
them more in future.”
And a future with Höegh LnG promises to be very excit-
ing. With the first of two SrVs scheduled for delivery in
2009, Höegh LnG’s fleet will begin to expand, matching its
high ambitions. “After years of hard work and significant
investment from the owners, we are all looking forward to a
bright future for Höegh LnG,” says Støhle.
In 2005, Höegh LnG (together with joint-venture partner,
Mitsui oSK Lines, or MoL), contracted Samsung Heavy
Industries to build two Shuttle and regasification Vessels
(SrVs). These highly complex vessels are vital to the com-
pany’s deep water port terminal concept Port neptune
and developed in cooperation with MoL and SUeZ energy
(north America). At the time, the project had not been ap-
proved by US maritime authorities, and neither Höegh LnG
nor Samsung had ever built an SrV before.
“Shipbuilding is always a complex process, but when you
are building something new, the challenges are magnified,”
says Höegh LnG’s site team manager Tony Armstrong, who
joined the project last year. “Fortunately, we are working
with a network of highly experienced suppliers.” Armstrong
explains that while Höegh LnG knows ships, most of the
systems onboard have been developed by companies with
experience in the gas processing industry. “The success of
the project depends on getting the various elements of the
project to work together seamlessly,” he says.
Two of the more complex systems to be installed on
the SrVs are regas plants, developed by Hamworthy Gas
Systems, and a submerged turret and buoy system devel-
oped by APL. one innovative aspect of the SrV concept is
that ship control systems and cargo handling systems will
all be controlled from the bridge – a challenge Höegh LnG
has assigned to their long term partner, KonGSBerG. “In
addition to the Dynamic Positioning system, bridge control
and navigation, KonGSBerG will develop integrated control
systems to manage the regas units and control valves on the
seafloor,” says Armstrong. “This is a critical element of the
SrV concept, and we are confident they will deliver a seam-
less, fully integrated solution.”
Armstrong will lead a site team that will be made up of
about 10 people, including two representatives of Höegh
LnG’s partner on the project, MoL. At present, the team is
busy working to manage a number of technical challenges
in cooperation with Samsung and classification issues in co-
operation with DnV. “Because the SrV concept is relatively
new to the industry, we do not have the luxury of relying
on existing standards,” he says. “It is an enormous chal-
lenge, but Höegh LnG has a long tradition of pushing the
boundaries of innovation and I look forward to watching
this vessel take shape.”
He won’t have to wait long. In november, the Port
neptune Project was approved by US maritime authorities.
Steel cutting will begin in early 2008, and the first SrV will
be delivered in 2009.
Putting the pieces togetherThe Shuttle regasification Vessel is a strong concept – on paper. But the responsibility of turning a stack of complicated engineering blueprints into one of the industry’s most sophisticated vessels falls to a team lead by Höegh LnG’s project manager, Tony Armstrong.
................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ .....
DEFINING THE SRV
The SrVs under construction for the neptune deepwater
port have a cargo capacity of 145,000m3, which is stored in
four cargo tanks utilising the membrane insulation system.
Three regasification skids are installed on the foredeck with
a maximum natural gas send-out capacity of 750 mmscfd.
Typically, the vessels will be moored on site for six days to
discharge the cargo. The vessels have four dual-fuel engines
and an electric propulsion system. To approach and pick-up
the submerged buoy, the vessel employs a KonGSBerG DP
system with two bow and two stern thrusters. The vessels
are designed with a range of environmental safeguards to
minimise the environmental impact when moored on site.
From left: Tony Armstrong,
Höegh LNG, Rune Moldestad,
SUEZ Energy, and Yoshikazu
Kondo, Mitsui OSK Lines
26
THEME Energy & Determination The FULL PICTURE magazine 01/08
27
The second-largest U.S.-based energy company, Chevron
has always moved the lion’s share of its product itself, be
it via tanker or pipeline. The Chevron Shipping Company,
based out of Chevron’s corporate headquarters in San
ramon, California, manages over 4,000 voyages a year and
is busy supporting the company’s upstream gas projects in
nigeria and Australia.
In the first-half of 2005, the company turned heads when
it announced a contract with Samsung Heavy Industries for
two dual-fuel diesel electric LnG carriers. It was one of the
industry’s first orders featuring the new propulsion system,
and introduced a series of new issues to tackle for Chevron
Shipping’s technical newbuilding department.
Chevron Shipping Company’s rick Boudiette, Team
Leader – Fleet Projects and Services, and his colleagues
Brian Kearins and Lloyd Bland got to work determining
how these special carriers would be equipped. Boudiette
and Kearins spoke with the Full Picture magazine about the
specific challenges involved in the gas management and au-
tomation of these vessels.
The selection teamAlthough the decision to build dual-fuel diesel electric
propulsion plants on the LnG newbuildings for Chevron
Shipping’s fleet predated Boudiette, he confirms that the
company and its technology group were convinced of the
soundness of the concept at an early stage.
“Dual fuel medium speed engines had been around for
a while. Introducing them to an LnG carrier with a diesel
electric plant, though, was a major change,” said Boudiette.
“This technology aims both to optimise fuel efficiency,
lower emissions and reduce the company’s dependence on
scarce steam turbine competence. Another reason we chose
this solution stems from the design, as it allows for larger
cargo-carrying capacity.”
Granted these clear advantages, the dual-fuel propulsion
system introduces new challenges, primarily associated with
gas management. on a steam-driven ship, extra boil-off gas
is simply shunted to the turbine, more steam is produced
and then discharged; on a diesel-driven ship, any extra gas
must be reliquified and returned to the tanks, or combusted.
Samsung proposed a number of makers for gas manage-
ment and automation, and Chevron Shipping Company ap-
plied its traditionally rigorous approach to make its decision.
Boudiette assigned Kearins and Bland to the task, along
with a representative from Chevron’s global energy technol-
ogy outfit, and these three set about visiting these makers,
comparing solutions and carrying out a full due diligence
process.
For Boudiette, the most important matter at hand was to
find as complete and integrated automation system as pos-
sible. In other words, the selection team sought a maker that
could do full automation of the gas management, including
emergency shut-down, custody transfer, gas compression
control and combustion. “We wanted to keep the number of
stray terminals and monitors to a minimum,” he said.
The choiceTo make a long story short, Chevron Shipping Company’s
selection team decided upon a fully integrated package of
KonGSBerG equipment. Kearins describes how and why the
team chose KonGSBerG in the end.
“After doing a review of the power plant, we started our
due diligence process for the automation. We knew that the
integration of the gas management system was vital. At the
time, we felt that the only specialist with the ability to do
the integration to the reasonable satisfaction of the owner
was KonGSBerG,” said Kearins.
He describes how the team, during their visit to
Dual-Fuel DiligenceFor over a hundred years an example of excellence in crude oil tankers, Chevron Shipping Company has increasingly beefed up its fleet of gas carriers. Its carriers on order at Samsung Heavy Industries aim to set themark for excellence again.
“This technology aims both to optimise fuel efficiency, lower emissions and reduce the company’s dependence on scarce steam turbine competence.”
- Rick Boudiette
Article by THE FULL PICTURE MAGAZINE / Photo: M. Christine Torrington
Rick Boudiette (left), P.E., Team Leader – Fleet Projects and Services, Marine Services Group, Chevron Shipping Company,
and Brian Kearins, Electrical & Controls Engineer, Marine Services Group, Chevron Shipping Company, outside the company’s
headquarters in San Ramon, California.
28
THEME Energy & Determination The FULL PICTURE magazine 01/08
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LNG in the fast laneThe LnG transportation industry has always been driven by innovation. But in an increasingly competitive industry characterized by rapid change, being a step ahead of the competition is not only an advantage – it’s a necessity.
Kongsberg in norway, saw how KonGSBerG could model
the management of excess boil-off gas in sophisticated
monitoring systems. They talked training, support, compo-
nents, consoles and ergonomics.
“We’re always interested in a vendor that has proven
itself. Ability to deliver previously is a pretty good start-
ing point, when determining their ability to deliver in the
future. Another factor that we like is a marine-centric ap-
proach. Is the vendor’s solution designed for marine vessels,
or is it a universal system in which its use on ships is just
one application?” said Kearins.
“We’ll benefit from KonGSBerG’s experience delivering
on other projects,” he said.
Projects, projects, projectsnext to the newbuildings at Samsung, Boudiette and his
team are constructing and operating a series of three stan-
dard steam-driven LnG vessels for Sonangol. Through
Chevron’s technology group, they provide marine compe-
tence on joint industry projects. Areas of interest include
FSrU (floating, storage and regasification) technology and
ship-to-ship transfers.
“In terms of gas shipping, the immediate future will con-
cern dual-fuel and gas management issues. Some hope to
employ steam turbines more effectively. There’s also the in-
troduction of low-sulphur heavy fuel oils, which adds more
complexity to the propulsion picture. The next big issue,
though, will be figuring out how we can further reduce
emissions,” said Boudiette.
Rick Boudiette (left), P.E., Team Leader –
Fleet Projects and Services, Marine Services
Group, Chevron Shipping Company: A gradu-
ate of the United States Merchant Marine
Academy in New York, Boudiette sailed
briefly before coming to shore and eventually
joining Chevron Shipping Company in 1989.
Today he is responsible for all of the com-
pany’s floating newbuildings, including LNGs,
tanker fleet expansions and replacements.
Brian Kearins, Electrical & Controls Engineer,
Marine Services Group, Chevron Shipping
Company: An electrical engineer with con-
siderable experience working in naval archi-
tecture on refurbishment projects of existing
naval, commercial and coast guard vessels,
Kearins has extensive experience with control
systems and control system providers.
Golar LNG CEO Gary Smith (left) and
Kongsberg Maritime Sales Manager Cato Franck
Article by THE FULL PICTURE MAGAZINE / Photo: Morten Rakke and Ken Ng Liong
30
THEME Energy & Determination The FULL PICTURE magazine 01/08
31
With its roots in norway, a history in Asia, and headquar-
tered in London’s busy Canary Wharf, Golar LnG operates
at the centre of the LnG transportation industry. The com-
pany is listed on both the oslo Bors and nasdaq and has
three decades serving the growing LnG industry. With such
strong credentials, most companies would be tempted to
play it safe. But Golar LnG insists on being a pioneer.
Five years ago, the company invested significant resourc-
es to develop a Floating Storage and regasification Unit
(FSrU) concept for LnG, and last year Golar announced
that they had contracted Keppel Shipyard in Singapore to
perform the industry’s first-ever conversion of an existing
LnG carrier into an FSrU. While the project had contracted
some interest, Golar LnG had no existing contract for the
converted vessel. So why take the risk?
“The organisation felt the greater risk was ‘business as
usual’,” says Gary Smith, Ceo of Golar LnG. “our vision is
to be the industry leader in LnG transportation services,
and we can’t achieve that goal by standing still.” Smith, an
Australian who spent part of his career at Shell Trading &
Shipping Co. in London, joined the company in 2006. “At
the time, I had no interest in running a traditional fleet of
LnG carriers,” says Smith. “But after meeting with the own-
ers and the board, I was convinced that they were commit-
ted to a more ambitious programme.”
Smith notes that Golar LnG’s strategy to offer energy
companies more flexible midstream solutions is based on
changes in the global LnG market. “rising demand for LnG
in north America and europe has encouraged energy com-
panies to seek more innovative solutions to process, store,
and transport LnG,” he says. “The Atlantic Basin represents
a very attractive market to companies with the capacity to
offer these solutions.”
Smith explains that an FSrU is a semi-permanent floating
LnG receiving terminal. The FSrU will receive LnG from
offloading LnG carriers, and the onboard regasification
system will provide gas send-out through flexible risers and
pipeline to shore. “It is a more flexible and cost-effective
solution than a land based terminal, and answers many of
the increased environmental concerns faced by energy com-
panies,” he says. “And because FSrUs are vessels, they can
be moved as the situation requires.”
With a fleet of 14 vessels, Golar LnG remains active in
LnG transportation, some engaged in long-term contracts,
others trading in the spot market. Indeed, the company has
recently completed an extensive newbuilding programme
and is currently considering adding new tonnage. “our
maritime expertise continues to provide a strong foundation
for our business,” he says. “But we see a significant growth
opportunity in providing our customers with more flexible
floating terminal solutions, and we were willing to assume
the capital, technical and execution risk to make it happen.”
And recently, the risk has paid off. Last spring, Golar
LnG announced that it has been awarded two ten-year time
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THE SPIRIT OF FSRU
The Golar Spirit is a steel mono hull
equipped with MoSS LnG tanks. The re-
gasification plant will be placed in the for-
ward section of the vessel, with the crew
facilities, control room and utility machin-
ery situated in the aft end. once in place,
the terminal will be permanently moored
alongside a pier equipped to receive high
pressure natural gas via purpose built hard
arms. The LnG tankers offloading to the
floating terminal will be moored on the
opposite side of the pier.
“Our vision is to be the industry leader in LNG transportation services, and we can’t achieve that goal by standing still.”
Gary Smith, CEO, Golar LNG
charters by Petrobras to employ two converted Golar ves-
sels (Golar Winter and Golar Spirit) as floating LnG storage
and regasification vessels. Both vessels will be modified to
permit regasification of LnG prior to delivery to Petrobras.
The estimated contract value (excluding the five-year op-
tion period) is approximately US$860 million.
According to Smith, the contracts represent a significant
milestone for the company. “These contracts are likely to
positively influence long-term shareholder earnings and
improve the opportunity to further optimize Golar's fi-
nancing,” says Smith. Indeed, the company has recently
announced that it has signed a final Memorandum of
Agreement with regard to the sale of the Golar Frost to oLT
offshore LnG Toscana S.p.a, the project company in con-
trol of the Livorno FSrU project, for USD 231 million. “We
are also currently negotiating another FSrU project in the
Middle east,” says Smith.
With a modest management staff of 20 people, Golar LnG
relies on partnerships with key suppliers to achieve their
goals. “MoSS Maritime provides technology for the regas-
ification plant, Keppel Shipyards executes the conversion,
and Kongsberg Maritime has developed a vital solution for
systems integration,” says Smith.
Golar LNG’s site team at the Keppel Shipyard in Singapore:
Arvid Nygaard (left), Site Manager;
B. Devendran, Piping & Structural Supervisor;
and Idar Herland, Machinery Lead
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THEME Energy & Determination The FULL PICTURE magazine 01/08
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With an enchanting view of the sea from the company’s
Haugesund headquarters on norway’s west coast, Knutsen
oAS Shipping is clear over what charterers are looking for –
advanced newbuild ships able to perform sophisticated op-
erations. This has been the strategy for the company since
1984, when chairman Jens Ulltveit-Moe and Trygve Seglem,
the company’s managing director, became main owners of
the firm and reorganised activities.
Knutsen oAS had a proud history and many decades
of experience as tanker operators, but financial problems
meant that the company was more or less starting from
scratch on the shipowning side. In fact, when the new or-
ganisation got its first offshore loading contract with Statoil
for two shuttle tankers in 1984, Knutsen oAS only owned
0.40% of the ships.
The two newbuilds – the Anna Knutsen and ragnhild
Knutsen – were built in China and delivered in 1987, and
are great examples of the success to come for the company.
The Anna Knutsen was in consecutive trade for one char-
terer – Statfjord Transport (with Statoil the majority owner)
– for twenty years, whereas the ragnhild Knutsen, which
was sold in late 2007, is believed to have taken more car-
goes of crude oil ashore than any other shuttle tanker in the
north Sea.
Advanced technology breeds advanced profits
After heading into administration as a result of the 1970s tanker crisis, Knutsen oAS Shipping has risen up through the guidance of Trygve Seglem to become the world’s second-largest shuttle tanker operator. What got them here was sheer determination and their steadfast focus on innovative shipping solutions.
Common for the two pioneer ships and all of the other
offshore shuttle tankers that Knutsen oAS has owned
and operated over the years (the company currently owns
18, and has three more on order) is dynamic positioning
systems from KonGSBerG. Seglem stresses the importance
of DP systems for handling advanced offshore loading
– something he became familiar with early in his career.
After graduating from newcastle University with a Marine
engineering degree in 1974, he began work at Statoil. These
were early days for the oil and gas giant, which is made
clear by the fact that Seglem was one of the two staffers
in the entire organisation hired for offshore loading opera-
tions.
During Seglem’s seven years at Statoil, he had a good
deal of contact with KonGSBerG – including taking part in a
simulation study with the two companies and the Christian
Michelsen Institute to find out more about the possibili-
ties of DP in the area of offshore loading. “not only is
KonGSBerG very strong technologically, but also extremely
professional in all of its client dealings,” says Seglem.
KonGSBerG also provides Knutsen’s shuttle tankers with
automation equipment.
Shuttle tankers just the beginning While offshore loading vessels still make up the largest por-
tion of the Knutsen oAS fleet, the company also has large
investments in product/chemical carriers (12 ships, with
four on order), and a true area of growth in recent years
and the near future will be LnG carriers. Knutsen currently
has six LnG carriers, with an additional four on order at
DSMe (Daewoo) in South Korea scheduled for 2010 deliv-
ery.
The LnG market has accelerated rapidly of late – a point
well illustrated by the proliferation of carriers. According
to Seglem, the world LnG carrier fleet has gone from ap-
proximately 100 to 300 ships over the past four years, and
should increase to about 400 carriers by 2011.
Knutsen placed its first orders for LnG carriers in
1999/2000, with the first three delivered in 2004, and oth-
ers arriving in 2006 and 2007. KonGSBerG has delivered
integrated automation systems and integrated gas manage-
ment solutions to the three Knutsen LnG carriers built in
Spain – Cadiz Knutsen, Bilbao Knutsen and the recently de-
livered Sestao Knutsen. All three are shipping LnG to Spain
on long-term charters.
The four LnG tankers newbuilds Knutsen oAS has on
order at Daewoo represent operational and technical ad-
vances from the previous generation. Carrying capacities
will increase from 138,000 m³ to 173,400 m³ of LnG – which
will make them among the largest LnG ships afloat – and all
are equipped with Wartsila dual combustion diesel-electric
engines.
“It costs more to build ships with dual combustion en-
gines, but the advantages outweigh this,” says Seglem. The
benefits of the innovative design include greater propulsion
efficiency and a significant reduction in fuel consumption
compared to the gas turbines used previously.
At least two of these vessels will be on 20-year time
charters with repsol YPF as a part of a Peru LnG project
scheduled for a 2010 kickoff – with the deal representing
Knutsen’s largest-ever LnG contract.
When online in 2010/2011, repsol will export 4.2 million
tonnes of spot LnG cargoes per year for 18 years from the
Peru LnG plant. Sixty percent of the gas volumes are ear-
marked for the Mexican market, with the rest to go to Asian
markets.
The importance of integration KonGSBerG has contracts for the integrated automation
systems for the Daewoo LnG newbuilds, along with the gas
management systems. These management systems are more
advanced in nature due to the dual combustion engines.
Article by THE FULL PICTURE MAGAZINE / Photo: Pål Hoff
Knutsen OAS Shipping Managing Director Trygve Seglem (left), and Kongsberg Maritime Sales Manager Finn Søberg
From left: Morten Stanger, Sales Manager,
Kongsberg Maritime; and Tom Knutsen, Project
Manager, Johannes Brynjulvsen, Project Manager
and Hans Tveitaskog, Technical Director, all of
Knutsen OAS Shipping
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PNGKnutsen, along with partners europipe GMBH and Det
norske Veritas, was first out of the gate with the PnG con-
cept, but had problems getting it off of the ground due to
previous “pipeline class” regulations. When new regulations
came about in 2003, they got the go-ahead they needed.
The trio has developed a ship that is approved for PnG
transportation.
Though PnG doesn’t compress as much as LnG, the gas
treatment required is minimal. This provides PnG a flexibili-
ty that make it both a means for direct natural gas transport
and a local solution for bringing stranded gas to market.
With cost savings in the areas of liquefaction, storage and
regasification facilities, PnG requires but a fraction of the
equipment investment needed for LnG. And the reduced
energy resources needed to compress the gas make PnG a
more environment-friendly solution than LnG.
Knutsen’s goal with PnG is to set the pace in the direct off-
shore loading of natural gas, utilizing technology similar to
that currently in use for crude oil offshore loading. This fits
with the company’s vision of offering tailor-made transpor-
tation solutions for leading energy companies. Knutsen is
currently considering a number of possible plans and hopes
to decide on the first PnG commercial project shortly.
Knutsen VOC Technology (KVOC) In line with the Kyoto Convention, many national authori-
ties have implemented stringent VoC (volatile organic com-
pounds) emission reduction regulations for offshore loading.
Knutsen’s KVoC method passively reduces VoC emissions
during the loading and transport of crude oil. KVoC installa-
tion on eight Knutsen ships has proven significant emission
reductions, along with reduction in H2S release from cargo.
The system is available for purchase by other operators, and
has been bought by four non-Knutsen vessels so far.
The development of the KVoC method, which has cost
Knutsen approximately $10 million, is something managing
director Trygve Seglem is quite proud of. “We have great
belief in the project,” he says. “KVoC is easy to install and
take care of, inexpensive to purchase, costs nothing to
run, and saves oil transporters a great deal of energy and
money.” Indeed, shipowners typically make their money
back on the system after only five or six offshore loadings,
and many competing VoC systems cost as much as ten
times the price of KVoC.
KVoC was a recent runner-up in the “Protection of the
Marine and Atmospheric environment” category at the
Seatrade 2007 Awards.
Advanced solutions are not only an important aspect of Knutsen OAS’s current areas of focus, but also in the
realm of two projects that may take longer to bring about dividends, but have strong long-range prospects: the
shipping of pressurized natural gas (PNG) and the company’s own KVOC technology.
DETERMINATION AND INNOVATION AT WORK
While the KonGSBerG systems become more complex and
incorporated with one another as a result of more intricate
technologies at work, the company’s product usability and
customer service remain as good as ever.
KonGSBerG product integration is seen as an advantage
by Knutsen oAS project manager Tom Knutsen. He’s work-
ing with the company on behalf of the LnG newbuilds.
“Projects have become so complex that one can’t operate
with stand-alone systems. Integration is extremely impor-
tant today,” he says, adding that KonGSBerG’s contracts
with a number of subsuppliers makes it much easier – and
more profitable – to work with them.
Knutsen oAS Technical Director Hans Tveitaskog has had
a good deal of contact with KonGSBerG over the years, and
feels that the company greatly engages themselves with
their clients. “We expect that, if we have a problem, the
supplier has a problem, too. KonGSBerG is a firm believer in
this concept. KonGSBerG gives us their full attention when
we get in contact.”
Ice class on order Knutsen oAS’ areas of operation have expanded a great
deal of late. While there’s still a large focus on the north
Sea and northern europe, Knutsen oAS currently carries
out offshore loading in such distant areas as newfoundland
and Labrador on the Canadian shelf, Brazil, Venezuela and
West Africa.
With oil and gas opportunities proliferating in colder
regions of the globe, Knutsen oAS is living up to its reputa-
tion as an innovative, advanced shipping solutions provider.
The company recently received the ice-class Suezmax tank-
er Windsor Knutsen, and has an additional ice-class tanker
and LnG carrier on order with Daewoo. The two newbuilds
are scheduled for 2010 delivery.
All three are ice-class 1A, making them able to operate in
temperatures as low as -30º C. The newbuilds are initially
slated for the Baltic region and Canada, though deliveries
from the giant Shtokman field aren’t ruled out as a future
possibility.
LNG: A matter of scaleonce considered a niche energy market, demand for LnG in north America and europe has soared, attracting fresh capital for new trains, innovative floating solutions and relat-ed infrastructure. But according to Douglas-Westwood, one of the UK’s leading offshore consultancies, the future belongs to companies who are willing to think big, act fast and have deep pockets.
Located in the historic town of Canterbury an hour and
a half outside of London, the modest offices of Douglas-
Westwood recently played host to an afternoon champagne
party. The company, which has been in the business since
1990, was celebrating the recent signing of its 500th project.
John Westwood, the company’s founder, raised his glass to
his hard-working staff and congratulated them on a job well
done.
An hour later, the party thinned out, and the staff of 12
people returned to their desks. “We felt it was important
to mark the occasion,” says Westwood, examining an un-
finished bottle of champagne. “But the fact is, things are
changing so fast in our industry, we don’t have much time
to celebrate.”
A voice of experienceWestwood has been in the oil and gas industry for more
than three decades, a career that has taken him from the
north Sea to Southeast Asia, the Middle east to the Gulf of
Mexico, russia to West Africa and beyond. He has worked
for governments and energy multinationals and once ran his
own company, marketing one of the industry’s first roVs
-- developed in cooperation with Kongsberg Maritime, he
adds. Yet for all his experience, he has never seen a market
like this. “Five years ago, we accurately predicted a sharp
rise in the cost of oil and understood that LnG would be the
next big thing,” he says. “But the scale of LnG projects now
being developed has exceeded our original estimates.”
Westwood says that organizations looking for success
Article by THE FULL PICTURE MAGAZINE / Photo: Nina Ragnøy
Douglas-Westwood’s team
talking LNG:
Steve Robertson (left),
Assistant Director and
Manager, Oil & Gas;
John Westwood (center),
Managing Director; and
Adam Westwood, Manager,
Renewable Energy.
36
THEME Energy & Determination The FULL PICTURE magazine 01/08
37
level of capital expenditure required to construct new
plants,” he says. “In addition, the development of larger liq-
uefaction trains will create larger economies of scale – thus
compensating somewhat for rising capital requirements and
sustaining the economic viability of LnG as a solution for
bringing gas to market.” Still, robertson notes, these proj-
ects typically go over budget by about 40 per cent.
So what explains these cost overruns? robertson says
that while development costs have grown, the technology
is not the problem. “Many companies with both the capital
and technical expertise to develop large scale projects un-
derestimate the complexities of regional politics,” he says.
“These are issues that can’t be solved by engineers.”
Partnering for the futureIncreased demand for LnG and rising environmental con-
cerns are also changing how LnG vessel operators and en-
ergy companies interact. To meet market demand, energy
companies are refocusing their efforts to access stranded
gas reserves in deep water and increasingly partnering with
LnG shipping companies to develop floating terminal solu-
tions.
“Significant amounts of natural gas reserves are located a
long distance from the end market, or have no nearby pipe-
line infrastructure,” he says. “Without access to markets,
the produced gas is either flared or re-injected. LnG ship-
ping offers an access mechanism, a method of monetising
these gas reserves and reducing the environmental impact
that is associated with gas flaring.”
A fresh look at floating solutionsFor shipping companies with experience transporting LnG,
this has created an opportunity to move “upstream” and
integrate themselves more into the value chain of their cus-
tomers. “Today, there is an overcapacity of tonnage in the
world LnG fleet which has put price pressure on traditional
LnG shipping.” says robertson. “But by offering energy
companies more flexible solutions, these companies can get
a better rate of return.”
At present, several companies have announced plans to
develop floating terminal solutions. Höegh LnG (see article,
page 22) has announced plans to develop the industry’s first
LnG Floating Production, Storage and offloading (FPSo)
unit, and Golar LnG (see article page 29) has already started
work to convert the LnG carrier Golar Spirit into a Floating
Storage and regasification Unit (FSrU). robertson says
that while these floating terminals have limited capacity,
they enable energy companies to access, process and market
gas more effectively in some regions.
A bright futureWith the future of the oil industry complicated by high
prices, lack of adequate refinery capacity, and rising global
demand, Westwood believes oil prices will remain high, and
continue to rise over the next decade. “We anticipate that
the global oil supply will reach a peak in the next five years
then begin to taper off,” he says. “In a global economic
environment characterized by declining oil production and
increased demand for energy, natural gas will become an
increasingly attractive alternative to crude. Despite the high
costs related to accessing, processing, and storing LnG, the
industry has a bright future.”
“In the last five years, the scale of LNG projects and relat-ed infrastructure has grown at an unprecedented rate,”
John Westwood, founder, Westwood- Douglas.
in the offshore LnG segment must be willing to think big,
act fast and have deep pockets to support long-term think-
ing. “The nature of our business is forward-looking,” says
Westwood. “our clients not only require accurate analysis
of current conditions, but a sense of how things will develop
in the future. And in the last five years, the scale and cost
of LnG projects and related infrastructure have grown at an
unprecedented rate.”
An uncertain path to a bright futureSteve robertson, Douglas-Westwood’s Assistant Director
of oil & Gas, says that the capital investment and technical
expertise required to operate in this dynamic market have
created significant barriers to entry. “The scale of develop-
ment has increased dramatically,” he says. “For example,
liquefaction trains now being considered can process up to
seven million tons annually, and in the last five years, the
carrying capacity of LnG vessels has almost doubled, to 250
thousand cubic metres of gas,” he says. “This scaling up is
due in part to increased market demand, but technical de-
velopments have allowed both energy and shipping compa-
nies to think on a larger scale.”
Investment costsover the next few years, new liquefaction facilities com-
ing on stream will lead to a massive increase in global LnG
output capacity, requiring investment costs of almost $42
billion. Two regions - Africa and the Middle east - will see
particularly dramatic growth in expenditure and will to-
gether account for 64.5 per cent of forecast capital expendi-
ture, along with almost 96 mmtpa of additional liquefaction
capacity.
In Africa, key developments will include further develop-
ment of BG’s facility at Idku, along with the Bioko Island
plant in equatorial Guinea and the continuing expansion of
the nigerian LnG plant at Bonny Island. In the Middle east,
the rasGas and Qatargas developments in Qatar will take
centre-stage. robertson says that supply-side constraints
are now impacting the business – ePC costs are rising, final
investment decisions are being delayed or postponed, and
the timing of planned expenditures continues to drift up-
ward.
robertson notes that while Asia remains a leader in LnG
transportation, the focus of the industry has shifted from
the Pacific to the Atlantic Basin. “Increased demand for
LnG in europe and the Americas, combined with ambitious
projects now being developed in russia, West Africa, Qatar,
and South America have created fresh opportunities,” says
robertson. “But the scale of these developments has created
significant cost issues.”
Where technology meets politicsrobertson explains that emerging technologies have helped
offset some of these operating costs. “Until recently, ad-
vances in liquefaction technology have led to a fall in the
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DOUGLAS-WESTWOOD: A LEADING INDUSTRY RESOURCE
Douglas-Westwood specialises in both business and market
strategy development, working on a confidential basis for
a broad range of commercial, industrial and government
organizations in 37 countries, throughout the world. In
addition to performing market research and data analysis,
the company develops entry strategies for new products
and services, and helps companies focus their r&D initia-
tives to target future markets in both the offshore industry
and renewable energy. The scope of the company’s work,
and their close relationship with industry leaders, has given
Douglas-Westwood a unique expertise on a growing market,
which they share through their highly regarded published.
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THEME Energy & Determination The FULL PICTURE magazine 01/08
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Frontier SpiritSamsung Heavy Industries turned its back on low-tech bulk carrier building and never looked back. Today the Geoje Island-based giant boasts 80 per cent of the market for drillships, 28 per cent for LnG carriers and will perhaps be the first major Asian shipbuilder to challenge europe’s lock on cruise ships.
Late last year, celebrity investor Warren Buffett told
BusinessWeek that Korea was “one of the world’s most at-
tractively priced markets.” This is mostly down to the coun-
try’s shipbuilding performance. each of its big three yards –
Samsung Heavy Industries (SHI), Daewoo Shipbuilding and
Marine engineering and Hyundai Heavy Industries – picked
up orders in excess of USD 20 billion in 2007.
each drillship order adds as much as USD 1 billion to this
total, each FPSo between one and two billion and each
drilling rig around a half-billion, depending on its sophisti-
cation. Samsung Heavy Industries reported offshore sales in
the vicinity of USD 6 billion in 2007. As Korean yards strive
to put distance between them and Chinese up-starts, SHI is
investing in new skills and partnerships to further its reach
in offshore projects, LnG technology and other tonnage.
Mr. Sang-Hoon Bae, a Vice President for outfitting
engineering at SHI who has worked on a dozen differ-
ent FPSo and drillship projects, talked to the Full Picture
magazine about the yard’s effort to distinguish itself in the
offshore sector, and in high-tech LnG newbuildings.
“The future is ours. We aim to be the world’s leading
shipbuilder by 2010. To reach and sustain this position,
we’ll focus on the leadership in technology of our high-end
products, our strength in production management systems
and cost control, as well as constant investment in intel-
lectual property and human resources,” he said. “We have
implemented special programmes with key sub-contractors
like KonGSBerG to secure our partnership and reach our
goals in technology and project management.”
World’s leading LNG carrier builderAn article in Lloyd’s List last november credited SHI with
28 per cent of the LnG carriers now on order, putting it just
in front of neighbouring rival DSMe as the top shipyard for
this segment. With demand for gas growing by over 2 per
cent per year globally and the fleet expanding to 400 ships
by 2012, the market will stay hot. SHI’s strategies in this
area are manifold.
“We see a boom in the current and future demand for
• established in 1974 on Geoje Island
• Four major products: Commercial vessels
(mostly container), offshore units, specialized vessels
and LnG carriers
• Production capacity: 24 specialized vessels such as LnG
carriers, 4 offshore & onshore plants and 19 commercial
vessels (2006)
• employed approx. 12,500 at end-2006, including 1,200
design and r&D personnel and over 7,400 field workers.
As many as 12,000 sub-contractors worked at the yard.
• Sales of USD 6.4 billion in 2006, USD 9.8 billion in 2007
• order backlog at the end of August 2007: USD 38 billion.
FACTS ABOUT SAMSUNG HEAVY INDUSTRIES
Article by THE FULL PICTURE MAGAZINE / Photo: Samsung Heavy Industries
Sang-Hoon Bae, Vice President for Outfitting
Engineering, Samsung Heavy Industries
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LnG carriers. The number of orders came to a lull in 2007,
but it’s still a strong area. We expect to see the Chinese
shipyards to compete with us here in the next few years.
one of our key strategies will be to build specialty vessels
demanding high levels of technology,” said Bae.
Halfway through last year, news emerged that Korean
shipyards had reinvigorated their efforts to develop a do-
mestic design for an LnG carrier containment system. This
is only one of the yards’ tactics to reduce the price of LnG
carrier newbuildings. For SHI, however, the focus seems
to be on cornering the high-end of the market, rather than
clutching ever more tightly at its lower ends.
Among the yard’s many prestigious LnG carrier contracts
was one for the building of two SrV’s (shuttle and regasifi-
cation vessels) for Höegh LnG and Mitsui oSK Lines (MoL).
These vessels promise to lead celebrated lives delivering
gas directly to the US east coast, even if they are designed
specifically to be out-of-sight (for more on the SrV’s, read
“Finding the better way” on p. 22 of this magazine).
Another novel LnG carrier delivery from SHI will be a
series of three purpose-built 90,000 m3 LnG Producer units
for Flex LnG. Here Samsung is described as a project part-
ner, and the vessels will employ Samsung’s proprietary SPB
containment system. These vessels, like the SrVs, aim to
bring a new innovative approach to the LnG value chain (in
this instance, producing LnG offshore for shipment straight
to market).
other high-profile, non-conventional LnG carrier deliver-
ies by SHI include a number of Qatargas Q-FLeX vessels
(one magnitude larger than past LnG carriers), and dual-fuel
powered LnG carriers for Chevron and BG. Thanks to its
performance on such new conceptual projects, the yard is
well-placed when the first order for an LnG FPSo finally
comes (Höegh LnG is one of at least two multinational
teams racing to develop one).
“Subcontractors play a key role in the success of
Samsung. We groom several subcontractors to meet our
continuous demand for customised high technology solu-
tions in the outfitting area. KonGSBerG is one of them,” said
Bae.
Offshore masteryThe UK’s royal Institution of naval Architects recently
named three SHI-constructed ships in its best vessel awards
for 2007. Among them, the drillship Stena Drillmax qualifies
less as a ship than an offshore facility. It can hold a secure
position in 16 meter waves and 41 meter per second winds,
operate in temperatures as low as -40 Celsius and drill down
to 11,000 meters. It is only one of a string of drillships con-
structed by SHI, which sees offshore construction taking up
a steadily larger chunk of its orderbook.
“our ambition is to be a world leader in building specialty
vessels. We see the offshore market growing until 2010 and
then stabilizing, and we are currently implementing plans to
cater to this market growth,” said Bae.
With a dozen years in conceptual engineering of FPSo
hulls, Bae has some perspective on the business. “Critical
dimensions in FPSos include Safety offshore standards,
maritime standards and customer-specific requirements.
The energy companies are demanding larger capacities, and
reliable and effective safety, in their FPSos, as well as flex-
ibility for future conversion and expansion,” said Bae.
evidence of SHI’s growing strength, in the FPSo busi-
ness, comes first from its recently-demonstrated ability
to win contracts in topsides fabrication and installation,
which it has done with both BP (Skarv) and nexus Floating
Production (nexus 1). Work on nexus 1 includes engineer-
ing.
Great Lift, Great LeapCompeting heavily with Singapore’s and Korea’s yard giants on offshore contracts today, Yantai raffles is already preparing for a future when other Chinese yards are the major competition. And it is aiming to surpass them all.
Article by THE FULL PICTURE MAGAZINE / Photo: Ken Ng Liong and Yantai Raffles
Egil Østlid (left), Managing Director, Kongsberg Maritime in Singapore; Julian Chang,
Executive Director, Yantai Raffles Group; and Antoney Wellesley, Regional Manager
Kongsberg Maritime Singapore
42
THEME Energy & Determination The FULL PICTURE magazine 01/08
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It’s the kind of toy many yard directors probably dream
about: A super crane capable of lifting the weight of count-
less hopes, as much as millions of men. The Yantai raffles
shipyard in Shandong Province, China unveiled “Taisun” –
its super crane – late last year after a year of construction.
The crane, which can lift 20,000 tons up to 70 meters
high, is only one of a number of pieces of infrastructure
that Yantai raffles believes will put it on a different foot-
ing compared to its rivals in shipbuilding in Asia. These
investments include a deepwater port, a massive dry-dock,
advanced CAD design tools and tight relationships with key
vendors.
“In the offshore business, in the short term, we’re com-
peting with Singapore and Korea. Though we have a price
and process advantage, we lack the same experience. As we
gain experience, we’ll see more competition from China, but
here we will have an advantage due to our infrastructure in-
vestments and experience,” said Yantai raffles’ founder and
executive Chairman Brian Chang to Full Picture magazine.
Saving millionsThe millions to be saved are not lives, but man-hours, and
thus dollars as well. With Taisun, Yantai raffles can build a
semi-submersible’s pontoons and platform with topsides at
the same time at ground level, and then simply lift the one
on top of the other. The same principle applies to the con-
struction of FPSo hull and topsides.
“The question we wanted to answer was this: How do
you significantly reduce the cost of building these kinds of
offshore structures. Taisun is the answer. Because we can
build these sections at ground level, we get a tremendous
advantage in terms of safety, quality and cost,” said Brian
Chang’s brother, Julian Chang – Yantai raffles’ Group
executive Director. He estimates that the crane will save 2
million man-hours in construction of one semi-submersible
drilling rig.
Brian Chang estimates that – should any other Chinese
shipyard choose to stake out a similar course – Yantai
raffles has at least a three to four year advantage in in-
frastructure investments. He states that Yantai raffles
presents a compelling case for any operator looking to build
large steel structures and large topsides – anything that can
benefit from a good-sized dry-dock and a massive crane, in
fact.
The yard has had success winning orders for a series of
DP2 and DP3 semi-submersible drilling rigs, FPSo and FSo
orders and a wide variety of offshore support vessels and
construction vessels. Among the yard’s most noteworthy
builds so far was the world’s first round FPSo, Piranema, for
Sevan Marine. Frigstad offshore and Awilco offshore have
also both chosen Yantai raffles to build sophisticated drill-
ing rigs.
Yantai raffles seeks to position itself ahead of national ri-
vals in China, and competitors throughout Asia, by combin-
ing sophisticated shipbuilding techniques with China’s low
costs.
Taisun
This massive crane can lift up to 20,000 mt to 70 meters,
meaning it can lift an entire deck box of a semi-submersible
rig onto its pontoons. This exercise saves countless man-
hours, while increasing safety and quality.
Pedestal crane
The yard’s revolving pedestal crane can lift 2,000 metric
tons with a 30 meter reach up to 95 meters high.
2 x 370 ton gantry cranes
Straddling the yard’s assembly and fabrication areas, these
two cranes are Yantai raffles’ workhorses in the construc-
tion of blocks and sections.
Automated warehouse
The fully-automated warehouse allows one man to manage
4,000 pallets of equipment and supplies.
Covered dry-dock
This 205 by 45 metre dry-dock allows construction of off-
shore support vessels year round.
Material Preparation Centre
Four CnC plasma cutters and electromagnetic gantry cranes
means the yard can produce 100,000 metric tons of steel per
year.
Deepwater port
Yantai raffles is dredging its port to a depth of 18 meters,
to allow installation and pre-testing of thrusters in the yard.
“We believe that it is important to have a long-term approach to our key vendors.”
- Brian Chang
Smarter construction, partneringJulian Chang points out that Yantai raffles has invested
in software systems unique to commercial shipyards.
Developed and adapted for Yantai raffles in conjunction
with IBM and Dassault Systems, the Product Lifecycle
Management (PLM) Shipbuilding Solutions have only previ-
ously been used at naval shipyards.
“We’ve invested a lot in this system. We sit together with
the client in the design phase and ensure we’re looking at
and thinking of the same thing. For this reason, we have
really minimised change orders at Yantai raffles,” he said.
one builder of a yacht carrier wanted, for example, to add
a swimming pool to the design, and this was accommodated
relatively painlessly.
Both brothers describe how close relationship with key
technology vendors plays into the yard’s long-term strat-
egy. For the time being, Kongsberg Maritime has a half-doz-
en different projects ongoing at the Yantai raffles shipyard,
including a massive semi-submersible drilling rig for Frigstad
offshore, a series of rigs for Awilco offshore and an assort-
ment of other vessels.
“We believe that it is important to have a long-term ap-
proach to our key vendors. The projects that we are doing
are complex. By working with a familiar vendor, it makes
everything, including commissioning, more efficient. And,
for KonGSBerG, it’s more convenient to focus on many de-
liveries at fewer yards,” said Brian Chang.
Brian Chang, Executive Chairman and
founder, Yantai Rafffles, with “Taisun”
WELL-EqUIPPED
Pedestal crane Automated warehouse
44
THEME Energy & Determination The FULL PICTURE magazine 01/08
45
Hamworthy Combustion’s HQ office, factory and r&D
complex in the seaside town of Poole on the south coast
of england has a high pressure 5 bar main natural gas sup-
ply, which is useful for a company that makes its living
(amounting to $150 million in turnover pa and growing at
some 15 per cent per annum) by controlling the power of
gas.
The Group first entered the LnG gas burner arena in 1971
when it developed a solution for the main boilers onboard a
vessel then called LnG Challenger. Prior to this, LnG carriers
were propelled by oil burning steam plants but the idea of
taking the wasted boil off gas and using it in the boilers as
an almost free fuel for propulsion was gaining ground. So
Hamworthy Combustion developed a gas, or dual fuel ver-
sion of its HX burner and called it the HXG burner.
richard Price, Marine & offshore Sales Director at
Hamworthy Combustion explains: “It was developed on
one of our test rigs at our Combustion Technology Centre
in Poole. Since then we have supplied dual fuel burners for
over 130 steam propelled LnG carriers that burn gas and
oil. Many of these were in the ‘70s and early ‘80s but since
1998, we have supplied around 550 burners for nearly 100
ships, such has the LnG carrier building boom been. A lot of
work has been done on the burner in this period, updating
and redeveloping it but ever since LnG Challenger, the HXG
gas burner has been a very steady product stream for us.”
Incidentally, Kongsberg Maritime was onboard LnG
Challenger in 1971 as a separate supplier, but it wasn’t until
1998, when both companies were involved in the refit of
that very same vessel, now called Höegh Galleon, that col-
laboration between the two companies really started.
Track RecordToday, Kongsberg Maritime is a key supplier of the control
systems for Hamworthy Combustion’s AMoxsafe® Gas
Combustion Units (GCU), as standalone systems or as part
of larger Integrated Automation Systems (IAS) supplied by
KonGSBerG directly to the LnG vessels.
“Kongsberg Maritime has in recent years become domi-
nant in LnG newbuildings. The working relationship be-
tween us started with the steam ships where we supplied
the burners to the boiler makers. I’m aware of a few of
those ships that are fully controlled by KonGSBerG systems
and the burner management side is a very specialist and
very risky area. We’re dealing with ‘controlled’ explosions
of up to 100 MW so the safety aspects and the sequences
of burner management are very, very complex. We would
be concerned if a supplier we didn’t see as an expert with
a good track record was supplying the IAS and control sys-
tems but not with KonGSBerG, because of our experiences
and relationship since the Höegh Galleon,” said Price.
KonGSBerG supplied burner control systems as part of
the IAS system onboard Höegh Galleon, which reflects the
direction that many owners have moved towards for such
systems in the last decade or so. “IAS has grown and grown.
It started with bridge control but has expanded into the
cargo system and the engine room. All the subsystems have
been brought into it and the ship-owner now has one type
of CPU or control system whereas in the past they may
have had half a dozen from different companies,” comments
Price.
Responsibility and ReputationIn a typical LnG gas burner installation, the scope of supply
structure is pretty straightforward: Although KonGSBerG
manufactures the burner management system hardware
and software, which is a standalone control cubicle for
the AMoxsafe® Gas Combustion Unit, it is actually within
Hamworthy Combustion’s scope of supply.
“responsibility must follow scope of supply,” a bold
statement from Price, who also believes that: “reputation
takes a very long time to grow and is very quickly lost. A
big accident on a ship is big news and very quickly damag-
ing to reputation. We have the best reputation in safety on
gas burners, boilers and burner management systems and
it’s hugely important that we protect our reputation, which
is why we are happy to use KonGSBerG control systems.”
Responsibility Follows SupplyHamworthy Combustion Group is in the business of controlling explosions so when it comes to choosing technology partners, they choose wisely.
Side-bar:
Worldwide recruitment
Hamworthy Combustion has
nearly 600 employees world-
wide, a figure that has been
growing steadily over the last
few years, thanks to the com-
pany’s expanding business and
commitment to recruitment.
Like Kongsberg Maritime, the
majority of new staff have
joined its local offices around
the world: “Most of our expan-
sion and recruitment, about a
25% increase in three years,
has been in our overseas of-
fices. Asia, China, Korea, Japan,
Singapore, Australia, Brazil,
Houston, europe and soon the
middle east,” said Price. The
Group’s global network of 17
country offices covers around
80% of the world’s economy.
At home in Poole, which is
not a heavily industrialised area,
Hamworthy Combustion is dedi-
cated to ensuring the continuity
of it’s knowledge and experi-
ence through an extensive ap-
prenticeship program. “We cur-
rently have 24 apprentices and
take new school leavers every
year. The four year course sees
them with us for four days a
week and at college for the
other day. There is of course
always a job waiting for them at
Hamworthy Combustion at the
end of their apprenticeship.”
“Kongsberg Maritime has in recent years become dominant in LNG newbuildings.”
- Richard Price Marine & Offshore Sales Director at Hamworthy Combustion
Article by THE FULL PICTURE MAGAZINE / Photo: Hamworthy Combustion Group
The test rig at the Hamworthy Combustion
Technology Centre in Poole, UK
46
THEME Energy & Determination The FULL PICTURE magazine 01/08
47
Fast-Tracked at Jurong
By investing in innovative production methods and focusing on “one-stop total integrated solutions” for a broad range of maritime and offshore structures, Singapore’s Jurong Shipyard has distinguished itself as a leading name in the offshore and marine engineering industry.
Jurong’s breakthrough rig production technologies, the
load-out & mating-in-dock technique and transverse skid-
ding, reflect the strengths of this dynamic yard. By building
the rig topsides and marine hull simultaneously before slid-
ing the one over the other and connecting the two, Jurong
can produce more rigs, faster, with better quality HSe per-
formance than competitors.
Innovation in production, effective harnessing of man-
power and resources and strong project management capa-
bilities: These are hallmarks of this Singaporean shipyard
that has built itself into a world leader in the offshore and
marine engineering markets.
In late December, when the Full Picture magazine
visited Jurong Shipyard, the drilling tower for recently
completed West Sirius 6th generation Seadrill semi-sub-
mersible crowned a tightly packed field of hulls. William
Gu, Assistant General Manager in Jurong’s offshore
Department, proudly tells us that it was Jurong’s first turn-
key semi-submersible rig building project that encompassed
all elements of engineering, procurement, integration and
commissioning.
A major partner in this landmark project at Jurong,
KonGSBerG was responsible for the DP and integrated con-
trol systems for the rig’s builder-furnished bridge. Says Gu:
“We selected KonGSBerG based on its strong track record,
and we are pleased with the outstanding performance deliv-
ered so far.”
A Different ApproachDon Lee, Senior General Manager of offshore at Jurong,
discusses the yard’s focus on “one-stop total integrated so-
lutions”. While many of its competitors amass a laundry list
of sub-suppliers to outsource production and churn out as
many units as possible in a hot market, Jurong has focused
on maintaining control over the production of fewer, more
technically advanced units, and delivering them on-time,
with high standards of quality, safety and reliability.
“It’s only five or six years since we ventured into rig
building. Today, Jurong Shipyard is a leading rig builder
with proven capabilities in the construction of highly so-
phisticated jack-up and semi-submersible rigs,” he says.
The shipyard has harvested a string of awards for its in-
novative approach to rig building, and particularly its load-
out & mating-in-dock and transverse skidding techniques.
Together these have doubled the yard’s semi-submersible
building capacity.
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...............................................................................................................................................................................................................................................................................................................................................................................
THE SEMBCORP MARINE CONNECTION
The Jurong Shipyard is one of seven yards in Sembcorp Marine’s Singapore hub, which is
part of the Group’s global network stretching from China to Brazil and America. With a total
docking capacity of 3.65 million dwt, the Group has the largest ship repair and marine-related
facilities in Asia. All told, the company is not only the world’s number two in construction of
offshore drilling rigs by market share, but also a global leader in the conversion of FPSos, FSos
and FPUs. It is a leading player in ship repair as well.
Singapore: Jurong Shipyard, Sembawang Shipyard, PPL Shipyard, SMoe, Jurong
SML, supported by PT SMoe & PT Karimun Sembawang Shipyard in Indonesia
China: Cosco Shipyard Group
USA (Texas): Sembcorp – Sabine Shipyard
Article by THE FULL PICTURE MAGAZINE / Photo: Ken Ng Liong and Jurong Shipyard
KONGSBERG was responsible for the DP and integrated control systems for Seadrill’s
6th generation semi-submersible drilling rig recently delivered from the Jurong Shipyard.
William Gu,
Assistant General Manager,
Offshore department,
Jurong Shipyard
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THEME Energy & Determination The FULL PICTURE magazine 01/08
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ON INNOVATION
Mr. Don Lee, Senior General Manager of offshore at the
Jurong Shipyard, describes the role of innovation in the
yard’s activities:
“Innovation is at the core of our growth and progress.
Through continuous re-invention, we have moved up the
value chain and established ourselves as a leader in ma-
rine and offshore engineering.”
“We believe in continuous improvement and setting new
benchmarks of excellence. We seek alternatives and ex-
periment with new processes and methodologies to raise
quality, safety and productivity standards.”
“We continuously invest in r&D to gear ourselves for
future challenges in deepwater oil & gas exploration. By
sharpening our competitive edge, we are able to deliver
more value-added solutions to our customers.”
“The West Sirius is the first in a series of seven similarly
designed 6th generation Friede & Goldman ex-D design
ultra-deepwater semi-submersible rigs built using our pro-
prietary fast-track rig construction techniques. Prior to this,
we successfully used this innovative rig-building approach
for the delivery of two 5th generation semi-submersible rigs
to GlobalSantaFe Corporation in 2005,” adds Lee.
Delivering faster, betterGu, who has over ten years of experience in the industry,
describes the long and growing relationship as a mar-
riage. “We’ve had KonGSBerG systems on our rigs since
GlobalSantaFe, which brought KonGSBerG as a client-
furnished vendor. For the past two years, we cemented
the relationship, and now integrated control systems from
KonGSBerG are at the core of our marine package,” he says.
Seven drilling rigs currently under construction at Jurong
have full packages from KonGSBerG as builder-furnished
control systems.
For Gu, who played a key role on the recent West Sirius
project, using one vendor for an entire control system has
clear advantages. “This is one of the biggest packages in the
market. We have KonGSBerG DP systems, power manage-
ment, integrated control, fire & gas, and now even naviga-
tion. By working with just one vendor, we reduce the num-
ber of interfaces, minimise the risk of interface problems
and speed up commissioning,” he says.
The yard’s ability to adapt swiftly to change in offshore
projects stems from its strong project management capabili-
ties. “Instead of mass production, we focus on enhancing
the value of the design and adding flexibility. We’re ready
to customise solutions to suit the requirements of our cus-
tomers and their charterers,” says Gu.
Don Lee, Senior General Manager,
Offshore Department, Jurong Shipyard
The December 22 celebration in Kongsberg –
Drekkedagsnatta – stems from the city’s silver mines era.
This was the day that miners would have free from work to
celebrate Christmas, and included both the consumption of
festive foods and drinks and a torchlight procession from
the mines to the city centre. The tradition continues today
– though for the entirety of the city rather than the long-
gone miners – honouring the city’s history and marking
the customary last day of work before residents take their
Christmas holidays.
In other words, this may be one of the two or three dif-
ficult days of the year to get help in the city of Kongsberg.
But it was just another day at the office for Kongsberg
Maritime’s 24/7/365 Customer Support department.
KonGSBerG DP system engineer Armand Aanekre was
on call and received a request from the superintendant
of a client ship – the Big orange XVIII. The 1982-built
well stimulation ship, currently on a time charter con-
tract with Schlumberger in the north Sea Basin, had an
Uninterruptable Power Supply (UPS) breakdown which
caused the ship to go off-hire and mobilize at Montrose.
The UPS, which supplies power to the KonGSBerG Albatross
ADP702 DP system installed onboard, was custom-made
due to special requirements.
The superintendant of the Big orange XVIII said that he
understood how difficult a situation this was to solve, given
the special nature of the UPS, and the fact that the ADP702
is an old and outdated unit.
Aanekre started to investigate what KonGSBerG could
do, calling in help from both Customer Support and other
departments, in order to gather up the right parts to fix the
UPS and put them together. Staffers taking part here in-
cluded odd Inge Tangen, Lorents Sæterlid, reidar Bommen
and Svein Guldbrandsen.
KonGSBerG personnel’s encompassing knowledge truly
came to the fore, as one of the employees happened to have
previously worked at the company that originally produced
the UPS parts – providing some of the insider knowledge
essential for the one-of-a-kind solution.
After a great deal of internal and external dialogue to lo-
cate the parts, certify that the right parts were ordered and
delivered, and after putting them together, there was also
the question of how to get the parts where they needed to
go as quickly as possible. enter KonGSBerG employee and
Scotland native richard Hopkins.
Though Hopkins is based in KonGSBerG for work, he was
to head home to Aberdeen the following morning for the
Christmas holidays. Arrangements were made for Hopkins
to travel with the parts on his flight from norway to
Aberdeen. After landing in Aberdeen, he sent the parts via
taxi to Big orange XVIII’s docking place.
The ship’s superintendant was astonished to find that
KonGSBerG was able to come up with a solution in such a
short period of time.
“This is a prime example of how we work here,” says
roar Inge Alfheim, KonGSBerG’s Department Manager of
Systems Support for Dynamic Positioning. “We don’t stop
until we have a solution in-hand and the vessel is up and
running again. everybody is determined to do that little
extra, go the extra mile, in order to obtain total customer
satisfaction.”
Where “impossible” is a foreign conceptKongsberg Maritime’s customer support team received an urgent, custom-made equipment parts request from a ship docked in Montrose, Scotland on a Saturday two days before Christmas eve. This also happens to be the date of Kongsberg’s largest annual city celebration. The result? Thirty hours after initial contact, the parts were on the ship.
Odd Inge Tangen, (left) of Kongsberg Maritime and
Armand Aaanekre, KONGSBERG DP System Engineer
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THEME Energy & Determination The FULL PICTURE magazine 01/08
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Designed to straddle oil production fields on both the
norwegian and British sides of the north Sea’s continental
shelf, the Alvheim FPSo faced complications from day one.
Kongsberg Maritime, winning contracts for both the top-
sides controls and its marine hull controls, was determined
to supply a fully integrated control environment, satisfying
requirements from the norwegian authorities, DnV, the
builder, the operator and the owner.
“It’s one thing to please everyone when they want the
same thing. It’s something else entirely when they want dif-
ferent things, especially when those things diverge,” said
KonGSBerG’s Magnar Thorrud, who has managed the fluc-
tuating picture of requirements coming from different angles
with aplomb. As 2007 drew to a close, when he spoke with
the Full Picture magazine, Kongsberg Maritime’s delivery
had exceeded all expectations.
A Unique ChallengeThe Alvheim FPSo’s owner, Marathon Petroleum Company
norway, acquired Statoil’s multi-purpose shuttle tanker
odin in 2004, with the aim of converting first the hull (at
the Keppel shipyard in Singapore) and then adding topsides
process facilities at Aibel’s integration yard in Haugesund,
norway.
“It is common to split contracts: one for the topsides,
another for the hull. on odin, the existing controls were
KonGSBerG, but we didn’t take anything for granted. We
won both contracts, and both Marathon and Aibel made it
clear they wanted an integrated solution. A central control
philosophy was a main goal,” said Thorrud.
Such integration is possible, practical and profitable for
the owner and operator. For this particular project, though,
it is a challenge. “The existing control system on the vessel
and the new topsides systems were different with respect to
generation. We’ve focused from the start to make sure they
operate together, but it’s been a struggle to keep focus on
this from everyone involved,” said Thorrud.
Thorrud made sure that the same team followed the proj-
ect all the way from hull conversion in Singapore through
topsides installation and integration in Haugesund. extensive
changes to the hull control system were necessary as topside
work progressed. Thorrud expanded Kongsberg’s manpower,
and brought in 3rd-party partners. Thorrud and his teams
worked for Aibel and for Marathon, scheduled work to suit
each party’s needs and managed hundreds of change orders.
“It’s a complex scenario and a complex delivery. Marathon
and the Alvheim FPSo will benefit from a more integrated
environment than they could get from any other vendor.
From an operational and maintenance perspective, Marathon
and the operator, Maersk Contractors, will benefit from our
integrated system. They can manage the whole vessel from
the same station,” said Thorrud.
Serving two mastersBecause the Alvheim FPSo is, like all FPSos, a hybrid be-
tween a ship and oil production facility, and because it needs
to operate according to both norwegian nPD and nMD
regulations, Thorrud and his team needed to align sometimes
contradictory rules.
“Take the consoles in the central control room. DnV
(class) rules stipulate a set-up similar to that which you
find on a sailing vessel, which looks like a bridge console.
norwegian offshore regulators, however, require an office-
like environment. Mechanically, these are very different.
What do you do? Build two different rooms?” said Thorrud.
Language is another contradiction. norSoK standards on
the control equipment stipulate norwegian language manuals
and interfaces. The operating language will be english. And
the operators, many of which are Danish, prefer a nordic
language. “It’s not easy to wrap up a discussion about this so
quickly or easily,” said Thorrud.
Given these challenges, given these complications, it is no
wonder that Thorrud sounds proud when he reports that the
Alvheim FPSo is finalising commissioning and preparing for
offshore hook-up, he’s hit all of his targets and owner, op-
erator and builder applaud KonGSBerG’s performance so far.
Determined to DeliverIf an FPSo is like a baby with a thousand fathers, Kongsberg Maritime Project Manager Magnar Thorrud was like the midwife determined to bring the Alvheim FPSo into the world as painlessly as possible.
As the major oil companies venture into deeper water and
further offshore, the role of floating production systems in
the oil and gas industry has become increasingly important.
Indeed, there are more floating production units under con-
struction now than at any other time in history. And the
few yards which have the technical skills to build these off-
shore units are running at capacity and increasingly rely on a
network of specialized suppliers to get the job done.
While KonGSBerG delivered its first control systems for a
floating unit in the early 1990’s (and has developed a num-
ber of other systems since), espen Kristensen (Kongsberg
Maritime’s Department Manager, Floating Production
Systems), says the pace of development in this sector has
created new opportunities and challenges for the company.
“Being good is no longer good enough,” he says. “We have
to be proactive in anticipating and managing technical chal-
lenges as they emerge and stay focused on our goal – no
matter what the obstacles.”
Concentrated expertiseon January 1, 2008, Kongsberg Maritime launched the de-
partment Floating Production Systems to concentrate the or-
ganization’s expertise in this segment. The new department,
which is part of the Process Control Business unit within the
oil & Gas division, will enable engineers to exchange infor-
mation, draw expertise from other parts of the organization,
find the best people for specific tasks and provide engineers
the resources they need to succeed. “The fact that we have
a dedicated unit devoted to this part of our business will not
only help us win the confidence of our customers, but help
us work more closely with other suppliers,” says Kristensen.
Today, KonGSBerG is probably the only vendor in the
world that can provide all control systems required on an
FPSo; radar systems, navigation, dynamic positioning,
process control, safety systems, process simulation and
optimisation as well as onshore / offshore integrated opera-
tions. Kristensen says the company’s “Full Picture” concept
is a key factor to winning contracts, but believes customers
value KonGSBerG’s drive to succeed as a core competence.
“They already know we have the requisite technical capac-
ity, so we have to show them that we have the resolve to
manage complex tasks on schedule,” he says.
Meeting a tough challengesAt present, KonGSBerG is providing vessel control sys-
tems, process control systems and safety systems for the
neXUS 1, (see article page 18), an FPSo designed for harsh
weather conditions, now under construction at Samsung
Heavy Industries. All these systems must be linked in one
Integrated Control and Safety System (ICSS), a familiar
challenge for KonGSBerG. However, Kristensen notes that
KonGSBerG has taken the lead to develop system specifica-
tions for the Power Management system, a vital sub-system
of process control.
Kristensen says the neXUS 1 project is a good example
of how the organization will work in future. In addition to
managing complex technical issues related to control, safety
and power management systems, KonGSBerG works closely
with both Samsung and APL, which owns part of neXUS
and is developing a turret and mooring system. “For us, it’s
never if, it is always when,” he said.
Never if, always when
“We have to be tenacious in our efforts to develop and deliver systems in line with both customer expecta-tions and within the specifications and timetable of the yard.”
Espen Kristensen, Department Manager, Floating Production Systems
experience and technical skill may help KonGSBerG win contracts in the hot FPSo market, but the company’s core competence is its drive to succeed.
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THEME Energy & Determination The FULL PICTURE magazine 01/08
53
“I’ve been working in customer service for almost two de-
cades. It’s always been a goal of mine to teach users more,
so that we would have less work from a service perspective.
often a problem is really a small thing,” says Siow Chon
Meng, who began as Kongsberg Maritime Singapore’s train-
ing manager in January.
The training facilities at the Singapore office are brand
new, and feature one classroom with nine fully-equipped
training consoles for DP. There is a separate classroom for
ICS, subsea or similar kinds of training, which requires a PC
set-up for each student.
“We tailor-build the Integrated Control System and DP
course to suit the rig or vessel that the attendees will oper-
ate, and give them hands-on experience working in a live
environment with the real KonGSBerG equipment that they
will see offshore,” says Siow.
Customers include Transocean, Seadrill, Maersk
Contractors and Petrorig. Today courses are offered in
Singapore for DP operator certification. DP technical and
familiarisation, integrated control systems, hydroacoustic
and hydrographic systems, GPS and MrU courses are also
occasionally offered.
In the near future, Siow expects the facilities to expand
with more classrooms, more students and a broader stan-
dard offering of classes. “There aren’t enough skilled people
in the market, so demand for training will only grow,” says
Siow.
Hands-on TrainingA dedicated training operation in Singapore expands capacity, and the variety of courses on offer.
More and more customers in the maritime industry want to
offer their employees training courses customised for their
needs. Kongsberg Maritime is expanding proportionally, and
now employs 30 full-time trainers at 11 different locations.
It has recently expanded in the USA, Korea, the Philippines
and norway.
According to Global Training Manager at Kongsberg
Maritime’s Simulation and Training Department, Anne Toril
Kasin, conducting local training is important for several
reasons. “our customers are spread throughout the world.
Being close to the customer is vital, so the need for global
training facilities is self-evident. The lack of skilled person-
nel in the maritime industry combined with an increasing
number of newbuildings results in a growing demand for
training activities provided by Kongsberg Maritime.”
New facilities During 2007, new training facilities were built and expanded
world over. A new training centre in Houston augments
its courses in Dynamic Positioning, K-Chief, DataChief and
AutoChief. Facilities in Busan grew to three classrooms
(one dedicated to merchant automation training), after the
opening of new premises there in December. A coopera-
tion with the norwegian Training Centre in Manila provides
Kongsberg Maritime with a dedicated room for training,
suitably entitled the Kongsberg room, for K-bridge and
K-Chief courses. In norway, we opened a completely new
training centre in Horten in August that features two new
classrooms and one specialised training room.
Building confidenceThe training department offers a range of various offers
such as standard certification course, project related course,
customer specified training and consultancy, refresher
training, onboard assistance, onboard or on-site training
and trainer on simulator products. The goal of Kongsberg
Maritime is to build confidence by providing hands- on
instruction through realistic cases, troubleshooting and
faultfinding as well as individual advice. This is backed up
by thorough theoretical insight with emphasis on the use of
documentation. All courses are tailor-made to meet the de-
mands of each customer but the course structure is the same
regardless of where in the world it is conducted.
Upgrading Training Facilities World WideKongsberg Maritime responds to increased global demand for training by investing in the quality and quantity of its global training facilities.
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TRAINING & COURSES
As a result of the development of K-bridge integrated
bridge system, the training department at Kongsberg
Maritime now offers both operator and maintenance courses
for this product. K-bridge is a development of Kongsberg
Maritime’s previous systems and the course is therefore
completely new. As a navigation trainer for Kongsberg
Maritime providing K-bridge courses, eirik Hågensen puts
great emphasis on functionality.
“Since this is considered one of the most advanced navi-
gation systems in the world, thorough training is vital to en-
sure safe operations. Due to strict time limits and high pres-
sure, this type of instruction is normally hard to conduct
onboard. Consequently, one major advantage for those who
attend our simulated course is that they learn how to oper-
ate as many functions as possible in a safe and controlled
environment. Learning optimal use will in turn reduce cost
by fuel saving and most importantly; it will contribute to
a safer voyage” comments KonGSBerG instructor eirik
Hågensen.
High quality trainingThe operator course lasts for three days and will provide
training by the use of a Polaris simulator in order to practise
real-life scenarios. The simulator is a great help in this con-
text by, for instance, showing as realistically as possible on
the screen where in the world you are sailing. In addition to
the operator course, Kongsberg Maritime provides two days
of maintenance training. All courses are tailored for the cus-
tomer to guarantee their benefit.
“The purpose is to offer realistic scenarios so that partici-
pants are well prepared for the reality they meet onboard
a ship. Few companies have their own training department,
so Kongsberg Maritime is in the forefront in this area. By
attending one of our courses, participants can expect high
quality training from experienced navigators. So far, the re-
sponse has been very good and the participants have been
satisfied”, said department manager for product training
Ingar Tveiten.
About K-BridgeDeveloped from a need to provide a more uniform look,
K-Bridge Integrated Bridge System - IBS is adaptable to
the requirements of all sea-going ship types. It is designed
to meet all IMo and classification societies' requirements
all the way up to one-man bridge operation. Kongsberg
Maritime’s Integrated Bridge System is designed for easy
operation to allow maximum time for observation and
decision-making. This is particularly apparent in our ArPA/
radar and eCDIS systems. These systems have the same
intuitive user interface, the same panel layout and menu
system. route plans, mariner's notes, charts, radar video
and vector presentation are shared between the systems. To
simplify installation onboard, all systems are pre-installed
in their consoles on delivery. Compliance with relevant
rules and regulations are checked before the equipment is
installed, thereby avoiding possible expensive redesign on
site.
New Navigation Training with K-Bridge
With the development of Kongsberg Maritime’s Integrated Bridge System, K-Bridge, came the need for a new course. Kongsberg Maritime’s training department met the challenge.
Ingar Tveiten (left) is Kongsberg Maritime Department
Manager for Product Training. At his side,
KONGSBERG trainer Eirik Hågensen.
Training manager for Kongsberg
Maritime in Singapore Siow Chon
Meng in action at the new training
facilities.
Kongsberg Maritime trainer Anders
Hovde (background) leading one of
Kongsberg Maritime´s expanding
range of training courses.
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THEME Energy & Determination The FULL PICTURE magazine 01/08
55
After developing a completely new LnG reliquefaction
system, Hamworthy sought to renew its training offer.
Hamworthy approached Kongsberg Maritime, a subvendor
that had developed hands-on operator courses using simu-
lation, to join forces and create a common “reliq” course,
combining theory with practice. The first joint reliquefac-
tion training was held in February 2008, making the two
companies the first in the world to offer a simulator process
training course.
responsible for customer support at Hamworthy, Hans
Jakob Buvarp, emphasises the advantage of offering a
joint training program. “Since reliquefaction is new to the
maritime industry, providing an in-depth training program
was important in order to secure crew qualifications. By
combining Hamworthy’s theoretical course with Kongsberg
Maritime’s hands-on simulation training, we are able to
offer a more operative and complete training package. What
Kongsberg Maritime has to offer is very important to us and
reflects our good cooperation.”
Authentic scenariosThe week-long training program, offered both at
KonGSBerG Carpus and in Busan, consists of lectures by
Hamworthy and simulation training by Kongsberg Maritime.
The simulator allows users to practice scenarios in the train-
ing room, so they better learn decision-making and what
could potentially go wrong while operating the system.
Together with Karstein Hammervold of Hamworthy, course
instructor rasmus Zachrisson from Kongsberg Maritime has
been responsible for establishing a course outline.
“The joint program enables alternation between theory
and practice without delay, making it possible to employ
the lessons by Hamworthy on our simulator right away.
operating the system in a safe training environment before
trying it out in real life is a great advantage to both employ-
ers and employees and a course certificate gives added as-
surance and confidence that the crew can actually use the
product,” said Zachrisson.
Environmental and economic benefitsThe Moss rS™ LnG system developed by Hamworthy re-
cycles boil-off gas in diesel-powered LnG carriers’ cargo
tanks, increasing the delivered cargo load and improving
environmental performance. Kongsberg Maritime’s K-Chief
system runs the alarm, monitoring and control facilities of
this system, so that ship officers can operate the machinery
safely. This is an important element in securing the relique-
faction process.
Department manager for product training at Kongsberg
Maritime, Ingar Tveiten comments: “reliqefaction is a
delicate process, and is completely dependent on a reli-
able automation system and a capable crew. As the first in
the world to complete a successful reliquefaction gas trial
last autumn, we can safely say that we have the relevant
competence needed to conduct high-quality reliquefaction
training.”
Peter Döhle’s training ship TS Ho Chi Minh takes onboard
six trainees over a two month period. In addition to the
natural training environment that a ship provides, the Ho
Chi Minh boasts a full training deck with trainees’ quar-
ters and a classroom. Kongsberg Maritime, which has both
AutoChief® C20 and DataChief® C20 on the ship, conducts
five-day courses onboard during which the ship stops at no
less than six different harbours in Japan, Korea and Taiwan.
rune M. Johansen is Kongsberg Maritime’s instructor
on the ship. “The machine room is directly underneath the
classroom, enabling us to show participants where the vari-
ous components are located. Training is conducted through
case studies and examples. By deliberately adding faults
to the system and always making sure each trainee takes
part in at least one manoeuvre, they are exposed to au-
thentic situations and trouble shooting, making them better
equipped for everyday life on a ship. Since we are all on-
board, we get to know each other quite well, and it is both
fun and challenging to work so closely with the trainees. As
an instructor, I think this is one of the most rewarding types
of training.”
Successful programTS Ho Chi Minh is one of Peter Döhle’s eight training ves-
sels. Some are employed purely for training purposes; TS Ho
Chi Minh runs in normal traffic as a container ship, although
its crew includes six trainees. These aspiring electrical en-
gineers from Ukraine, rumania, Philippines, Poland and
India are selected by Peter Döhle’s own world wide crewing
agency. onboard, they spend the first half of the day in the
classroom; in the second, they test out their skills on the
ship’s equipment. A training engineer onboard at all times
shows the aspirants the smaller electrical equipment on-
board the vessel. After tests, the trainees are distributed to
other vessels as electrical assistants.
A golden opportunityTechnical Superintendent at Peter Döhle Mr. Knut ruehling
is confident that this arrangement provides both the train-
ees and the market with a golden opportunity.
“Most companies don’t have enough service engineers
due to the increase of newbuildings. For newly educated
electricians on the other hand, it is hard to get relevant ex-
perience, so this type of practical training is an advantage
on both sides. All parties gain from this arrangement.”
Joining for New Reliquefaction Training
Kongsberg Maritime and Hamworthy Gas Systems joined forces to provide a comprehensive training program for the new generation of reliquefaction systems.
Training in a Natural EnvironmentGerman shipowner Peter Döhle brings the classroom to the ship on TS Ho Chi Minh. Kongsberg Maritime was invited to participate.
From left: Trainer
Karstein Hammerwold of
Hamworthy Gas Systems,
and trainers Rasmus
Zachrisson and Arnstein
Bugge of Kongsberg
Maritime.
Kongsberg Maritime trainer Rune M. Johansen in
the Ho Chi Minh onboard training room.
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TRAINING & COURSES
56
THEME Energy & Determination
“We have a clear growth strategy in this market. We will have
strong double-digit growth here until 2010 and then we hope
it starts to stabilize,” says Kongsberg Maritime’s customer
support manager in Singapore, Tom eystø.
When eystø arrived in Singapore early in 2006, he took
over a group of just over a half-dozen customer service tech-
nicians and engineers. By the end of 2008, he expects to have
a staff of over three dozen.
“When I started, I was amazed to see the dedication and
good KonGSBerG mentality among our colleagues. As we
have grown from a small office to a medium-sized company,
we need to organise ourselves a bit differently, and work
smarter to serve our customers better,” says eystø.
Booming regionSingapore saw upwards of 170,000 port calls last year. over
5,000 vessels visited the country’s stalwart ship repair yards.
And the flow of newbuildings from China often use the voy-
age to Singapore to work out warranty claims. That sums up
to a strong demand.
“Many vessels carry KonGSBerG equipment, and our re-
gion stretches from Pakistan to new Zealand. We have sepa-
rate offices handling Korea and China, but that still leaves us
with a tremendous amount of work over a broad geographical
area,” says eystø.
For eystø, the goal is to build up an organisation, backed
by a fully-stocked spare parts inventory, that can act pro-
actively towards the region’s heavy traffic. The target is to
become pro-active: If a vessel due for a software update is
on its way to port in Singapore, eystø’s team could contact it
before arrival and arrange for rapid service during its stay.
“It means we need the right parts, people and knowledge
ready to go. It’s something we’re working towards right now.”
Full picture serviceKongsberg Maritime focuses on increasing its service reach
in Asia by building up its own resources in key ports like
Singapore, training up its agent network across the region and
strengthening its training offer to users.
Kongsberg Maritime has nearly 50 sales agents in the Asia
region, ten of which are customer support agents. eystø has
been sending groups of these agents up to China, where some
of KonGSBerG ’s best engineers are working, and teaching.
Particularly in high-growth markets for KonGSBerG g, like
India, the strong agency network will be crucial.
The best and cheapest repairman for simple jobs is, of
course, the user. By increasing its training offer to users,
Kongsberg Maritime can help customers sidestep some service
calls. In 2007, around 150 users trained on DP and ICS classes
in Singapore, and this is due to increase with the creation of
a dedicated training manager (see article “Hands-on Training”
on p. 53)
“We’ve invested considerably through the years to get
highly skilled technicians and customer service engineers. A
vital factor is these people’s determination. our team comes
in early and no one leaves until the job is done, even if it’s
midnight or later. It’s service-mindedness and commitment,
and I believe it sets us apart,” says eystø.
Full service in Singapore
Kongsberg Maritime served over 1000 vessels (port calls and site visits) in Singapore in 2007. A rapidly expanding customer support team plans to go from reactive, to pro-active.
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KONGSBERG support 24
global support
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Norway
Louisiana (USA)
Singapore
Brazil
germany
Scotland
england
china
texas (uSA)
Newfoundland (canada)British columbia (canada)
Washington (uSA)
connecticut (uSA)South Korea
the Netherlands
italy
Nova Scotia (canada)
Szczecin
Mumbai
World-wide main contact Call +47 815 35 355
Regional Support centres 24h Europe, Africa & Middle East (Norway)
Kongsberg Maritime AS24h Hotline: +47 815 35 [email protected]
North America (Louisiana)Kongsberg Maritime inc.24h Hotline: +1 504 234 [email protected]
South America (Brazil)Kongsberg Maritime do Brazilc/o ReM indústria e comércio Ltda24h Hotline: +55 21 9965 [email protected]
Far East & Oceania (Singapore)Kongsberg Maritime Pte. Ltd.24h Hotline: +65 9862 [email protected]
........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................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the FuLL PictuRe magazine 02/07
Gastechwww.gastech.co.ukMarch 10 – 13
Seatrade Cruise Shippingwww.cruiseshipping.netMarch 10 – 13
Oceanology Internationalwww.oceanologyinternational.comMarch 11 – 13
Vietshipwww.cisvn.comMarch 11 – 14
Asia Pacific Maritimewww.apmaritime.comMarch 26 – 28
Sea Japanwww.seajapan.ne.jpApril 9 – 11
DSAwww.dsaexhibition.comApril 21 – 24
OTCwww.otcnet.orgMay 5 – 8
Oceanswww.oceans08.orgMay 8 – 11
MOCwww.moc2008.comMay 20 – 22
Posidoniawww.posidonia-events.comJune 2 – 6
Caspian Oil & Gaswww.caspianoilgas.co.ukJune 3 – 6
UTCwww.utc.noJune 4 – 6
Seawork Internationalwww.seawork.comJune 10 – 12
UDT Europewww.udt-europe.comJune 10 – 12
ONSwww.ons.noAugust 26 – 29
Expo
The FULL PICTURE magazine 01/07
Kongsberg Maritime AS
Kirkegårdsveien 45
P.O. Box 483
NO-3601 Kongsberg
NORWAY
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01/08