GOLDEN ENERGY OFFSHORE

GEO – January 2018CEO Per Ivar Fagervoll

Golden Energy Offshore Management is a fully integrated offshore ship management which offers turn-key management solutions for newbuilding, conversion and operation of offshore support vessels. The company operates vessels worldwide including North sea where the highest barriers are and are approved by all known operators and cabotage jurisdiction including West Africa on oil major charter with IMCA, OVID, Fpal, Achilles, UKOOA, OMFA, NWEA, IMO etc certified ISO 9001 , ISO 14001, OHSAS 18001 and ISO 50001.

Golden Energy Offshore Management AS

Golden Energy Offshore Management provide;

Full management for Offshore Service Vessels (OSV) including technical, crewing, QHSE, accounting and commercial /chartering.

Newbuilding supervision including; Projecting. Plan & Approval phase Budgeting Site supervision Risk assessment and Risk management Vessel acceptance and delivery of newbuildings

Conversion planning etc. Docking planning Vessel inspection Vessel acceptance and delivery of secondhand tonnage

Energy Swan large size PSV of ST 216L design built 2005

Golden Energy Offshore

Draft Presentation – Private and confidential

3

Fully certified operator with solid track record in serving the offshore industry’s most demanding clients

Comments All relevant certifications in place

One of three vessel operator authorities (VOA) approved by BP globally

Approved as service provider to Super Majors and subsea contracts

Fully certified and accredited ISO 9001, ISO 14001, OHSAS 18001 and ISO 50001

Golden Energy Offshore

4

Golden Energy Offshore (GEO) slides

GEO – Energy Management Project5

Dec 2012 / Jan- 2013 project initiated as consequence of the implementation of SEEMP

October 2014 – Cooperation initiated by Golden Energy Offshore GEO – Energy Efficiency and Fuel Management (EEFM) GIMS – Golden Energy Offshore Integrated Management System CEEMP – Company Energy Efficiency Management Plan

Golden Energy Offshore have strong focus on documenting our effort in energy efficiency in a systematic approach though CEEMP CEEMP / SEEMP requirements established to achieve maximum effect ISO 50001 certified, ISO 14001 certified and integrated into SEEMP through CEEMP.

Large saving potential identified Ship Performance Engine and consumers Voyage and operational performance

GEO – EM Project Saving potentials:

Ship Performance Trim & draft adjustments Autopilot adjustment and use Propeller polishing Hull cleaning Combinator optimising

Engine and Consumers Engine performance Improved engine load Optimised propulsion mode Power consumption

Voyage and operational performance Weather routing Speed management DP operations Logistics planning Shore power

These savings are: Ship owner controlled at no or low cost Ship owner controlled but with some cost Charterer controlled at no or low cost

GEO – EEFM Project

EEFM focus areas: Ship Performance

Trim & draft adjustments Autopilot and rudder usage Propeller condition Hull condition

Engine and Consumers Efficiency and utilisation of Main and Aux Engines DP and thruster operations Generator efficiency Pumps, ventilation, HVAC, lights

Voyage Performance / Operations Chartering / contracts Fleet planning, route and ship allocation Voyage planning Speed management DP settings and operations

Management and Organisation Strategy and tactical plans Performance Management Competence and training Culture and awareness

GEO – EEFM Project CEEMP / SEEMP / ISO 50001 measures (EnPI’s):

Voyage Optimisation Speed Selection Optimisation Weather Routing Optimised Heading Control / Autopilot Function Trim and Ballast Optimisation Just in Time Arrival / Virtual Arrival

Propulsion Resistance Management Program Hull and Propeller Cleaning Program

Machinery Optimisation Electrical Load Demand Minimisation

Performance Monitoring Systems Acon (IAS) Acon Energy – Ship Performance System Energy Management - Customer Web Portal for Fleet Comparison

Personnel Awareness and Training Energy Efficiency Best Practices Shipboard Familiarisation

Fleet Energy Efficiency Improvement Baseline versus Target

Code

Operational ModesEnergy Performance

Indicators (EnPls)

EnPl-1

Port conditionFuel oil Consumption

(MT) / Time (h)

EnPl-2

Standby Offshore/Waiting at

anchorage

Fuel oil Consumption (MT) / Time (h)

EnPl-3

Transit conditionFuel oil Consumption (MT) / Distance (nm)

GEO – EEFM Project

Recommendations for initial steps: Ship Performance

Implement a propeller polishing strategy Testing and guidelines for autopilot settings Implement optimal trim and draft settings

Engine and Consumers Acquire diesel performance analyser (if not onboard) Prepare standard engine monitoring form (machinery report) Investigate potential of installing fuel flow meters (if no onboard) Investigate potential of installing torque and thrust sensors Logging of daily average engine load (machinery report) Implement an energy consumer strategy Engine performance training

Voyage Performance / Operations Generate accurate picture of economic speed for all vessels in fleet Generate detailed energy efficiency DP procedures and implement throughout the fleet Generate overview of time spent in each mode to obtain accurate picture for each segment and each

operation mode

Management and Organisation Develop and implement procedures for energy efficiency Carry out operational and maintenance training for crew

GEO - Energy Efficiency and Fuel Management – how to get there?

PRIORITIZE ENERGY OPPORTUNITIES

DETERMINE CRITERIA

Remember to document the criteria developed by the energy team. This ensures the criteria are clearly understood and uniformly applied when prioritizing energy opportunities.

The energy baselineis the reference point which is used as the basis of comparison for determining the energy performance. The baseline is established using the

energy and organizational data from the initial energy review. The energy review was discussed in slide 8 and includes:

DEVELOP A LIST OF POSSIBLE ENPIS

(Text in GIMS Manual Energy Baseline and EnPls)

4.4.4 Energy baselineThe Company uses the Energy Baseline the Energy Efficiency Operational Indicator (EEOI), as defined by the IMO Circular MEPC.1/Circ.684. This Indicator serves as an overall indicator of the energy efficiency of the transport work carried out by the fleet vessels. The EEOI is calculated on a voyage basis and on a 12-months rolling basis for each fleet vessel. It is also averaged by ship type to evaluate the overall performance and carry out benchmarking.

The methodology for calculating the EEOI is set out in the IMO Circular MEPC.1/Circ.684. The Company shall evaluate the effectiveness of the set Energy Baseline and adjust it as necessary.

4.4.5 Energy Performance Indicators (EnPIs)The Company has identified EnPIs appropriate for monitoring and measuring the shipboard energy performance. The EnPIs have been determined with the aim of:providing a quantitative value to enable the monitoring of the effectiveness of the set energy management action plans in meeting the set targets;allowing a comparison to be made between fleet vessels.

The EnPIs are set out in the Company Energy Efficiency Management Plan (CEEMP) and the Ship Energy Efficiency Management Plan (SEEMP) and they shall be reviewed and updated during the annual Management Review Meeting and when business activities or baselines that affect the relevance of the EnPI change.

GEO - Energy Efficiency and Fuel Management – how to get there?

ACQUIRE, ANALYZE AND TRACK ENERGY DATA

Before energy data can be compiled, analyzed and used by management, it must first be acquired. Because the energy managementfunction needs other types of information in addition to utility data, a process is developed to make sure the proper data is collected. Steps involved in data acquisition include:

1. Identify data needs2. Determine availability of data3. Formulate a process for acquiring and recording data4. Investigate tools for tracking and analyzing energy data5. Choose and implement an energy data management tool

GEO decided to go into dialogue to utilized RRM – EM software ( which need to be adjusted for this pilot project) andACON Energy (IAS / PMS)

DETERMINE SIGNIFICANT ENERGY USES

Identification of significant energy uses is necessary and sufficient for an organization to achieve the most improvement in performance with the fewest available resources. Below is a step by step process for determining significant energy uses:

1. Prepare a list of your energy systems2. Develop an energy balance3. Determine criteria for significance4. Record significant energy uses and the method used5. Analyze and track significant energy uses

SYNOPSIS

Ref. Energy Saving Measure Ref. Energy Saving Measure Ref. Energy Saving Measure

4.1.

1

Speed Selection OptimizationSpeed reduction may reduce emissions, when Charter Party terms permit. Encourage the ship to operate at optimum speed in order to maximize energy efficiency.

4.1.

2

Weather Routing Software availability / weather charts / consideration of current and tide optimization. 4.

1.3

Optimized Heading Control / Autopilot FunctionMinimize the distance sailed “off track” through less frequent and smaller rudder corrections.

4.1.

4

Trim & Ballast OptimizationEach draught has an assigned best trim. Trim and ballast quantity may be optimized either through use of special software or through empirical methods.

4.1.

5

Just in Time / Virtual ArrivalVirtual Arrival involves reducing speed to meet a revised arrival time. The reduction in speed will result in lower fuel consumption and reduced GHG emissions.

4.2.

1.1

Propeller PolishingPropeller polishing should be carried out when possible. The polishing standard should be of no less than Rupert B on any parts, confirmed by the polishing provider.

4.2.

1.2

Hull CleaningHull cleaning should be carried out based on a condition assessment basis.

4.3.

1

Electric Load Demand Minimization Optimum E/R Fans / Pumps Operation Review electric load analysis and operate system pumps accordingly. Minimize piping system resistance when possible. Review air balance study and operate E/R fans accordingly.

4.3.

2

Lighting LoadsIt is believed that the use of LED lamps will achieve significant energy savings.Replacement of Incandescent Bulbs with LED lamps.

4.4.

1

Ship control and monitoring - Acon marine automationAn integrated automation systems designed to control and monitor ship operational systems and equipment.

4.4.

2

Monitoring and assessment of equipment energy efficiencyAn online portal to view, record and compare energy efficiency performance of the fleet; focusing on fuel consumption, emissions and operations.

4.5

Personnel Awareness and TrainingIncrease crew awareness through familiarization and training.

Synopsis of Energy Efficiency Measures

Ambisious target(s)?

201,4191,1

180,8170,5

160,3150,0

100,0

120,0

140,0

160,0

180,0

200,0

220,0

Baseline 2015 2016 2017 2018 Target 2019

MT

Avg fuel cons pr month all vessels – in Mt

Reductions

Baseline/target

How to get there?

Barriers to Energy Management /

EfficiencyManagement need to overcome some barriers

to succeed.

Which might appear to be the most difficult part?

Barriers to Energy M

anagement / Efficiency

Barriers to Energy M

anagement / Efficiency

Review of Barriers to Energy Efficiency in our Industry

Four steps:

Energy Efficiency SurveyRegional Stakeholder WorkshopDesk-top reviews of key barriersReporting

Four barrier categories

Lack of management awarenessLimited knowledge and informationLack of financingLimited policies and enforcement

Barriers to Energy M

anagement / Efficiency

Barriers to Energy M

anagement / Efficiency

• task 1a: Meeting with top management• task 1b: Form a Team and inform staff• task 1c: Pre-assessment to collect general information• task 1d: Select focus areas• task 1e: Prepare assessment proposal for top management approval

Step 1: Planning and Organization

• task 2a: Staff meeting and training• task 2b: Prepare focus area flow charts• task 2c: Walkthrough of focus areas• task 2d: Quantify inputs and outputs and costs to establish a baseline• task 2e: Quantify losses through a material and energy balance

Step 2: Assessment

• task 3a: Determine causes of losses• task 3b: Identify possible options• task 3c: Screen options for feasibility analysis

Step 3: Identification of Options

• task 4a: Technical, economic and environmental evaluation of options• task 4b: Rank feasible options for implementation• task 4c: Prepare implementation and monitoring proposal for top

management approval

• task 5a: Implement options and monitor results• task 5b: Evaluation meeting with top management

Step 5: Implementation and Monitoring of Options

• task 6a: Prepare proposal to continue with energy efficiency for top management approval

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

• task 1a: Meeting with top management• task 1b: Form a Team and inform staff• task 1c: Pre-assessment to collect general information• task 1d: Select focus areas• task 1e: Prepare assessment proposal for top management approval

Step 1: Planning and Organization

• task 2a: Staff meeting and training• task 2b: Prepare focus area flow charts• task 2c: Walkthrough of focus areas• task 2d: Quantify inputs and outputs and costs to establish a baseline• task 2e: Quantify losses through a material and energy balance

Step 2: Assessment

• task 3a: Determine causes of losses• task 3b: Identify possible options• task 3c: Screen options for feasibility analysis

Step 3: Identification of Options

• task 4a: Technical, economic and environmental evaluation of options• task 4b: Rank feasible options for implementation• task 4c: Prepare implementation and monitoring proposal for top

management approval

• task 5a: Implement options and monitor results• task 5b: Evaluation meeting with top management

Step 5: Implementation and Monitoring of Options

• task 6a: Prepare proposal to continue with energy efficiency for top management approval

Step 6: Continuous Improvement

Step 4: Feasibility Analysis of Options

But first…In what step(s) of the methodology do we encounter barriers to EM?

Barriers to Energy M

anagement / Efficiency

What can Companies do?

The answers is to stay

focused on strategy and

communicate targets clearly!!!

Vessel optimisation

Propulsion system & asset optimisation

Vessel system & asset optimisation

19Route to Energy Optimisation

Fleet Operational Management

Energy efficiency investment recommendation Energy efficiency

investment verification

Energy Power menu in IAS we building on..

All based on main Energy and Fuel efficiency basic

1. Energy review - The energy review is a collection of data that is used to profile the energy situation of the organization and provide energy information to support other planning activities and decisions. There are several data-related items that must be included in the energy review.

2. Energy baseline – The information from the energy review is used to establish a baseline which is the benchmark from which changes in energy performance are measured.

3. Energy Efficiency and Fuel Management Vessels operators should establish and maintain procedures to measure and limit the use of energy in their operations. These should include provisions for:

• Minimizing energy waste• promoting energy efficiency awareness• implementing vessel and voyage energy strategies to minimize

energy usage.• promoting co-operation with charterers and others to facilitate

energy efficient operations.

All this data gathered from IAS is real-time

Energy Balance - ACON….

and…

Energy Efficiency - ACON….

and…

GEO – EM Project – IAS readings needed 23

GEO – EM Project 24

ICCP and antifouling control

Hull Resistance

1 vs 2,3,4 Generators online

GEO – EM Project - 27

Some data gathered and monitored might be presentedlike below screen dump!

What have we achieved so far ?

• Reduced fuel consumption• Reduced Nox emission• Reduced Sox emission• Reduced CO2 emission

In addition we have;• Obtained charterers «blessing» to run vessel more energy efficient on DP

• New FMEA for multiple power distribution modes• Allow use of 2 vs 4 ME online during DP opr when allowable

• Less running hrs on machinery i.e. less energy use• Cause less maintenance• More work environment friendly vessel

• Lot of more focus from Charterers logistic centre as to how they use thevessel(s) – i.e. better planning

• Charterers and suppliers have adopted our system and focus area by assigning prestigeous pilot project to GEOM.

Fuel consumption reduction per 31.12.2017

This is great achievement and close to 35 % reduction vs target of 15% per 2017Meaning we are already below target 2019!!

GEO – Excellence in Energy Management

201,4

171,2

153,0

129,5

160,3

150,0

30,2

18,2

23,5

10,3

10,3

100,0

120,0

140,0

160,0

180,0

200,0

220,0

Baseline 2015actual 2016actual 2017actual 2018 Target 2019

MT

Avg fuel consumption pr month all vessels in tonnes.

Actual consumption

Reductions

Baseline/target

ISO Energy Management Standard

ISO 50001 have helped GEO establish a framework for our vessel operation and organizations to manage energy.

• Enables a systematic achievement of continual improvement in energy performance, energy efficiency, and energy conservation.

• Imposes requirements on energy supply and consumption:− Measurement− Documentation and reporting− Design and procurement practices for

energy-using equipment and systems− Processes and personnel

• Applies to those factors that can be monitored and influenced by the organization• Does not prescribe specific performance criteria with respect to energy. • Designed to be used independently, yet can be aligned or integrated with other management

systems (e.g., ISO 9001 and 14001). Applicable to all organizations.

Keep tuning your program. There is always room for improvement.

Energy management NEVER ENDS.