Liberty International Underwriters 2 Houston Marine Insurance Seminar September 17 th, 2007 T. T....
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Transcript of Liberty International Underwriters 2 Houston Marine Insurance Seminar September 17 th, 2007 T. T....
Liberty International Underwriters
2
Houston Marine Insurance Seminar September 17th, 2007
T. T. “Tommy” Laurendine, P.E.
Risk Engineer
Liberty International Underwriters
(713) 470 – 5823
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Role Offshore Structural Engineering Plays
in Understanding Risk
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Gulf Of Mexico (GOM)RISK is from hurricane WAVES
Hurricane Insured Loss
Ivan $1.4 B
Katrina $6 B
Rita $6 B
Total $13.4 B
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4,000 platforms4,000 platforms
35,000 miles of pipelines35,000 miles of pipelines
15,000 wells15,000 wells
2 Million BOPD2 Million BOPD
12 Billion SCFD12 Billion SCFD
22ndnd Largest Source of Income Largest Source of Income
GOM National Treasure
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0
20
40
60
80
100
120
140
160
180
200N
um
ber
of
Pla
tfo
rms
Removed 108 117 106 172 125 118 120 177 76 143 142 109 118 171 190 115 81
Installed 177 156 91 123 177 134 154 148 150 106 148 161 103 120 120 94 89
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
Platform Installations and Removals by Year
Average Number of Platforms: Installed = 132 per year, Removed = 129 per year Data as of 04/17/07
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GOM Structures by Vintage andWater Depth
(DATA AS OF JULY 1, 2007)
0
100
200
300
400
500
600
700
800
900
1000N
o. o
f S
tru
ctu
res
0-50 51-100 101-150 151-200 201-250 251-300 301-350 351-400 >400
Water Depth (feet)
Pre-RP 2A (1945-1972) Early-RP 2A (1973-1982) Modern-RP 2A (1983 to Present)
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Destroyed by Hurricane Ivan
Mudslide Wave-in-Deck
Wave-in-Deck Wave-in-Deck
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9Storm Tracks and Extent of Hurricane Winds
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Moored SEMIS Adrift in RITA
Before Rita
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Platform Destroyed by Drifting SEMI
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12Tension-Leg Platform (TLP)
Destroyed by Waves in Hurricane Rita
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Platforms Destroyed by Katrina / Rita
0
1
2
3
4
5
6
7
8
9
10
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Year of Installation
Num
ber of
Pla
tfor
ms
Des
troy
ed Katrina Rita
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14Increased Cost of Decommissioning
Increased Demand on Resources
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15GOM: Unique Challenge
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API Exposure Categories based on Life Safety and Environmental Pollution
• High Consequence• Medium Consequence• Low Consequence
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Platform Characteristics•Deck Height
•Orientation
•Exposure Category
•Framing
•Original Design Criteria
•Structure Type
•Age
•Water Depth
•Number of Conductors
•Location
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Waterline
Underside of Deck Deck Height
Deck Height
vs.
Air Gap
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Wave-in-Deck Damage
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Inadequate Deck Heightdue to Subsidence
The seafloor at this location has subsided 10 feet. The (+)10 is at the waterline.
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Platform Orientation
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300O
Pla
tform
N
orth
True
North
360O
API BULLETIN 2INT-MET Principal Wave Heading is 290O for this platform.
Platform Orientation
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AGE
Pre RP 2A
7.6% Failed
Early RP 2A
2% Failed
Modern RP 2A
1.5% Failed
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Mitigation
BeforeAfter
After
40’ 54’
Reduce Consequence of Failure
1. Reduce Load on Platform
2. Increase Strength of Platform
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Driving force to mitigate was to reduce the chance of having to spend resources dealing with the expensive task of P&A wells on bottom.
Why Mitigate?
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26Contingent Business Interruption
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API HEAT WORK
Principal Wave Heading varies from 270o to 345o by Longitude
270° 290°
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28Five New Recommended Practices
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Water Depth, MLLW (ft)
10 Year
25 Year
50 Year
100 Year
200 Year
1000 Year
2000 Year
10000 Year
100 1000
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
110.0
120.0
130.0
Hm
ax (
ft)
Maximum Wave Height by Return Period
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Water Depth, MLLW (ft)
1%
0.1%
100 1000
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
110.0
120.0
130.0
Hm
ax (
ft)
Fixed Structure Wave Force = f(Hmax)2
28% increase in wave height = 64% increase in wave force
Structures are typically designed to have a resistance 50 to 67%
beyond the design load.
28%
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Schedule Issues• Inconsistent Format
– Field Name versus Area and Block– Naming
• EC, East Cameron, East Cam, E. Cameron
• Out of Date Information– Removed platform included in schedule– New Installations not included
• Missing Data– Deck Height– Type of Structure
• Incorrect Data– Lat/Long Wrong– Wrong Water Depth– Wrong Installation Year
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Standardize Schedule Format
• OSTS Inspection Report– Required by CFR, Annually on Nov 1st
– Since 1988– Each Platform Documented
• OSTS Assessment Report– Requested by NTL– Over 75% of platforms documented with the MMS
in June 2004 voluntarily by Operators
• Complex Id and Structure No. Unique
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OSTS Inspection Report
****LEGEND**** INSPECTION YEAR - YEAR OF OSTS INSPECTION COMPANY NAME – NAME OF DESIGNATED OPREATOR COMPANY NUMBER – COM NUM CPXID - MMS IDENTIFICATION NUMBER STN – STRUCTURE NUMBER AUTH TYP- PLATFORM AUTHORITY TYPE LEASE = SURFACE ROW = PIPELINE RIGHT OF WAY RUE = RIGHT OF USE AND EASEMENT TIME EXTENSION= PLATFORM ON TIME EXTENSION LEASE AUTH NUM – OCS LEASE AURHORITY NUMBER AUTH STATUS – CURRENT PLATFORM AUTHORITY STATUS
AUTH TYP
AUTH STATUS
ROW ACTIVE
RUE APPROVED
LEASE OPERNS PRIMRY PROD SOP UNIT
AR - OCS AREA IN WHICH STRUCTURE IS LOCATED, (SEE REVERSE SIDE FOR A LIST OF NAMES AND INFORMATION ) BLK - BLOCK NUMBER OF OCS AREA ST NAME - DESIGNATED NAME OF STRUCTURE NDK - NUMBER OF DECKS NSTL - NUMBER OF SLOTS YI - YEAR STRUCTURE INSTALLED WD - WATER DEPTH AT STRUCTURE SITE QTR - CAPACITY OF QUARTERS (IF EXISTING) TYP - TYPE OF QUARTERS
N = NOT APPLICABLE P = PERMANENT T = TEMPORARY
STR TYP – TYPE OF STRUCTURE CAS = CAISSON B-CAS = BRACED-CAISSON TRI = TRIPOD 4-P = 4-PILE 4-P SK = 4-PILE WITH SHIRTS 6-P = 6-PILE 6-P SK = 6-PILE WITH SKIRT
8-P = 8-PILE 8-P SK = 8-PILE WITH SKIRTS 10-P = 10-PILE 12-P = 12-PILE DK TOW = DECK CONNECTED TOWER OTHER = TYPE OF STRUCTURE IS NOT LISTED, SPECIFY IN REMARKS COATING SYSTEM- A= GOOD CONDITION, NO MAINTENANCE NEEDED WITHIN 3 YEARS. B= FAIR CONDITION,
MAINTENANCE WILL BE REQUIRED WITHIN 3 YEARS. C= POOR CONDITION, MAINTENANCE NEEDED WITHIN 12 MONTHS. ( USE REMARKS: TO DESCRIBLE ACTION PLAN.)
CYA - CURRENT YEAR ABOVE WATER INSPECTION PERFORMED?
(EXAMPLE: 1995) (LEAVE BLANK IF NOT PERFORMED IN CURRENT YEAR) EXPLAIN MORE DETAILS.
MNDA - MINOR DAMAGE DETECTED” Y = YES N = NO
MJDA - MAJOR DAMAGE DETECTED? Y = YES N = NO
CYU – CURRENT YEAR UNDER WATER INSPECTION I\PERFORMED? (EXAMPLE: 1995)(LEAVE BLANK IF NOT PERFORMED IN CURRENT YEAR)
MNDU – MINOR DAMAGE UNDERWATER Y = YES N = NO
MJDU – MAJOR DAMAGED UNDERWATER Y = YES N = NO
PYU - PREVIOUS YEAR UNDERWATER INSPECTION PERFORMED? (EXAMPLE: 1991)(NOTE: A YEAR MUST BE ENTERED IN THIS SPACE)
NYII – NEXT YEAR LEVEL II INSPECTION TO BE PERFORMED? (EXAMPLE: 2003)(NOTE: A YEAR MUST BE ENTERED IN THIS SPACE)
CP - CATHODIC POTENTIAL SURVEY PERFORMED THEW YEAR? Y = YES N = NO
CPA - CATHODIC POTENTIAL READINGS ACCEPTIBLE? Y = YES N = NO
NOTE: ACCEPTABLE POTENTIAL READING USING REFERENCE ELECTRODE: A. SILVER CHLORIDE (-0.80 OR MORE NEGATIVE THAN) B. COPPER SULFATE (-0.85 OR MORE NEGATIVE)
LEVEL III - LAST YEAR LEVEL III INSPECTION PERFORMED? (EXAMPLE, 1998)(LEAVE BANK IF THE PLATFORM IS LESS THAN 10-YEARS OLD, OTHERWISE A YEAR MUST APPEAR IN THIS COLUMN)
NYIII – NEXT YEAR LEVEL III INSPECTION TO BE PERFORMED? (EXAMPLE 2007)(NOTE: A YEAR MUST BE ENTERED IN THIS SPACE). FOR CAISSONS AND WELL PROTECTORS THAT DO NOT REQUIRE A LEVEL III ENTER ( NA) FOR NOT APPLICABLE.
REMARKS: USE BRIEF REMARKS OR REFER TO ATACHMENTS WHICH DESCRIBE” 1. COATING SYSTEM CONDITION 2. DAMAGE DETECED 3. LOW CATHODIC POTENTIAL READINGS. 4. DETAILS OF INSPECTION PERFORMED, ETC.
CPXID STN
AUTH TYP
AUTH NUM
AUTH STATUS AR BLK
ST NAME
NDK NSLT YI WD QTR TYP STR YP CS CYA MNDA MJDA CYU MNDU MJDU PYU NY
II CP CPA LEV
III NY III REMARKS
12345 1 LEASE G05432 UNIT HI A 264 1 3 1 1982 45 0 N CAS B 2005 N N 2004 2009 Y Y 2004 2014
12345 2 LEASE G05432 PROD HI A 264 A 2 8 1971 115 0 N 4-P C 2005 N N 2004 2009 Y N 2004 2009 CP Retrofit planned 1st Qtr 2006; scheduled for painting 2nd Qtr 2006
12345 3 LEASE G05432 PROD HI A 264 B 2 9 1957 51 3 P 8-P SK
C 2005 Y N 2005 Y N 2000 Y Y 2004 2014 Dent in HZ +10; hole at water line; scheduled for painting 3rd Qtr 2006
12346 1 ROW G15654 ACT MI 605 C 1 3 1994 170 0 N B-
CAS B 2005 N N 2005 N N 2000 2010 Y Y 1995 2015 Permitted for removal spring 2006
4250 1 RUE G21553 APPROVED MO 914 B QRT 2 6 1957 101 10 P 8-P C 2005 Y N 2003 2008 Y Y 1998 2008 Corroded structural members; analysis underway; scheduled maintenance painting summer 2006
12346 2 RUE G15164 APPROVED WC 164 A 2 12 1982 40 14 P 6-P SK
A 2005 N N 2005 N N 2000 2010 Y Y 1995 2010 Painted 2004
****LEGEND**** INSPECTION YEAR - YEAR OF OSTS INSPECTION COMPANY NAME – NAME OF DESIGNATED OPREATOR COMPANY NUMBER – COM NUM CPXID - MMS IDENTIFICATION NUMBER STN – STRUCTURE NUMBER AUTH TYP- PLATFORM AUTHORITY TYPE LEASE = SURFACE ROW = PIPELINE RIGHT OF WAY RUE = RIGHT OF USE AND EASEMENT TIME EXTENSION= PLATFORM ON TIME EXTENSION LEASE AUTH NUM – OCS LEASE AURHORITY NUMBER AUTH STATUS – CURRENT PLATFORM AUTHORITY STATUS
AUTH TYP
AUTH STATUS
ROW ACTIVE
RUE APPROVED
LEASE OPERNS PRIMRY PROD SOP UNIT
AR - OCS AREA IN WHICH STRUCTURE IS LOCATED, (SEE REVERSE SIDE FOR A LIST OF NAMES AND INFORMATION ) BLK - BLOCK NUMBER OF OCS AREA ST NAME - DESIGNATED NAME OF STRUCTURE NDK - NUMBER OF DECKS NSTL - NUMBER OF SLOTS YI - YEAR STRUCTURE INSTALLED WD - WATER DEPTH AT STRUCTURE SITE QTR - CAPACITY OF QUARTERS (IF EXISTING) TYP - TYPE OF QUARTERS
N = NOT APPLICABLE P = PERMANENT T = TEMPORARY
STR TYP – TYPE OF STRUCTURE CAS = CAISSON B-CAS = BRACED-CAISSON TRI = TRIPOD 4-P = 4-PILE 4-P SK = 4-PILE WITH SHIRTS 6-P = 6-PILE 6-P SK = 6-PILE WITH SKIRT
8-P = 8-PILE 8-P SK = 8-PILE WITH SKIRTS 10-P = 10-PILE 12-P = 12-PILE DK TOW = DECK CONNECTED TOWER OTHER = TYPE OF STRUCTURE IS NOT LISTED, SPECIFY IN REMARKS COATING SYSTEM- A= GOOD CONDITION, NO MAINTENANCE NEEDED WITHIN 3 YEARS. B= FAIR CONDITION,
MAINTENANCE WILL BE REQUIRED WITHIN 3 YEARS. C= POOR CONDITION, MAINTENANCE NEEDED WITHIN 12 MONTHS. ( USE REMARKS: TO DESCRIBLE ACTION PLAN.)
CYA - CURRENT YEAR ABOVE WATER INSPECTION PERFORMED?
(EXAMPLE: 1995) (LEAVE BLANK IF NOT PERFORMED IN CURRENT YEAR) EXPLAIN MORE DETAILS.
MNDA - MINOR DAMAGE DETECTED” Y = YES N = NO
MJDA - MAJOR DAMAGE DETECTED? Y = YES N = NO
CYU – CURRENT YEAR UNDER WATER INSPECTION I\PERFORMED? (EXAMPLE: 1995)(LEAVE BLANK IF NOT PERFORMED IN CURRENT YEAR)
MNDU – MINOR DAMAGE UNDERWATER Y = YES N = NO
MJDU – MAJOR DAMAGED UNDERWATER Y = YES N = NO
PYU - PREVIOUS YEAR UNDERWATER INSPECTION PERFORMED? (EXAMPLE: 1991)(NOTE: A YEAR MUST BE ENTERED IN THIS SPACE)
NYII – NEXT YEAR LEVEL II INSPECTION TO BE PERFORMED? (EXAMPLE: 2003)(NOTE: A YEAR MUST BE ENTERED IN THIS SPACE)
CP - CATHODIC POTENTIAL SURVEY PERFORMED THEW YEAR? Y = YES N = NO
CPA - CATHODIC POTENTIAL READINGS ACCEPTIBLE? Y = YES N = NO
NOTE: ACCEPTABLE POTENTIAL READING USING REFERENCE ELECTRODE: A. SILVER CHLORIDE (-0.80 OR MORE NEGATIVE THAN) B. COPPER SULFATE (-0.85 OR MORE NEGATIVE)
LEVEL III - LAST YEAR LEVEL III INSPECTION PERFORMED? (EXAMPLE, 1998)(LEAVE BANK IF THE PLATFORM IS LESS THAN 10-YEARS OLD, OTHERWISE A YEAR MUST APPEAR IN THIS COLUMN)
NYIII – NEXT YEAR LEVEL III INSPECTION TO BE PERFORMED? (EXAMPLE 2007)(NOTE: A YEAR MUST BE ENTERED IN THIS SPACE). FOR CAISSONS AND WELL PROTECTORS THAT DO NOT REQUIRE A LEVEL III ENTER ( NA) FOR NOT APPLICABLE.
REMARKS: USE BRIEF REMARKS OR REFER TO ATACHMENTS WHICH DESCRIBE” 1. COATING SYSTEM CONDITION 2. DAMAGE DETECED 3. LOW CATHODIC POTENTIAL READINGS. 4. DETAILS OF INSPECTION PERFORMED, ETC.
CPXID STN
AUTH TYP
AUTH NUM
AUTH STATUS AR BLK
ST NAME
NDK NSLT YI WD QTR TYP STR YP
12345 1 LEASE G05432 UNIT HI A 264 1 3 1 1982 45 0 N CAS
12345 2 LEASE G05432 PROD HI A 264 A 2 8 1971 115 0 N 4-P
12345 3 LEASE G05432 PROD HI A 264 B 2 9 1957 51 3 P 8-P SK
12346 1 ROW G15654 ACT MI 605 C 1 3 1994 170 0 N B-
CAS
4250 1 RUE G21553 APPROVED MO 914 B QRT 2 6 1957 101 10 P 8-P
12346 2 RUE G15164 APPROVED WC 164 A 2 12 1982 40 14 P 6-P SK
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OSTS Assessment Report
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Schedule & Data
Risk Engineer
Broker
Underwriter
Risk Manager
Adjuster
Key Stakeholders
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Benefits of Standardized Schedule
• Consistent Format
• More Timely Underwriter Response
• More Accurate Insurance Policy
• Reduce Burden on ALL Stakeholders
• Greater Communication
• Improve Our Business
