Multi-use and Modular Platforms: Trends in Platform ... 02 23 Smith and … · Multi-use and...

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Multi-use and Modular Platforms: Trends in Platform Availability Presentation to: Meeting Seven: Ocean Exploration Advisory Board 23 February 2017 Texas University; Austin, Texas Presented by: Aaron Smith, OMSA Kirt Chouest, Edison Chouest Offshore

Transcript of Multi-use and Modular Platforms: Trends in Platform ... 02 23 Smith and … · Multi-use and...

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Multi-use and Modular Platforms: Trends in Platform Availability

Presentation to: Meeting Seven: Ocean Exploration Advisory Board

23 February 2017

Texas University; Austin, Texas

Presented by: Aaron Smith, OMSA

Kirt Chouest, Edison Chouest Offshore

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History of Offshore Supply Industry.

1723: “As defense, however, is of much more importance than opulence, the act of navigation is, perhaps, the wisest of all the commercial regulations of England” Adam Smith.

1789: Congress passes the United State’s first cabotage law.

1920: “It is necessary for the national defense and for the proper growth of its foreign and domestic commerce that the United States shall have a merchant marine of the best equipped and most suitable types of vessels” Merchant Marine Act of 1920.

1947: First well drilled off the coast of Louisiana, it is serviced by out-of-work shrimp boats and surplus WWII vessels.

1955: First purpose-built OSV constructed.

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M/V Ebb Tide

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History of OMSA and Offshore Supply Industry.

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History of OMSA and Offshore Supply Industry.

M/V Berm Tide

Betty Lou

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History of Offshore Supply Industry.

1956: First jack-up enters service, necessitating stern-to mooring.

1960: First Semi-submersible platform, resulting in the addition of winches and A-frames to OSVs to make anchor handlers.

Mid-1970s: Advent of lateral thrusters enables side-to mooring and “crewboating” or “live boating.”

1970s/80s: Increased use of dive support vessels and emergence of ROV supporting vessels.

Early 1990s: OSVs start to incorporate dynamic positioning systems allowing for improved station-keeping.

2000s: As drilling moves deeper, see 300+ ft, DP-2 become norm.

2009: Emergence of the U.S. Flag IMR vessel.

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History of Offshore Supply Industry.

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History of Offshore Supply Industry.

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History of Offshore Supply Industry.

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History of Offshore Supply Industry.

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“Best equipped and most suitable types of vessels.”

• Long-term charter,

• Spot charter,

• IDIQ charter-Indefinite delivery/indefinite quantity,

• Long-term charter with option to purchase,

• Bareboat charter-COGO, and/or

• Vessel operating contract-GOCO.

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Advantages of Chartering.

• The Contractor assumes the financial risk:• Government pays nothing until vessel delivery and acceptance,• Termination for convenience clause, and• Government is only obligated to the extent funds are available.

• Government reduces perceived performance risk by reserving the right to substitute crew with federal employees, military personnel, or other contractors if prime is unable to perform specified services.

• Costs are fixed and determined in advance (typically up to 5 years), which allows for more efficient budgeting.

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Advantages of Chartering (Continued).

• Increased vessel utilization.

• Chartering inherently allows the Government to improve vessel capabilities, upgrade equipment, revise the statement of work, or simply require a newer, more efficient vessel on a more frequent basis at little or no additional cost.

• Allows for more innovation.

• Increases cost efficiency: • Charter includes all operations and maintenance costs,

overhauls and dry-docking costs, and• Best value to the Government based on competition

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Hornbeck Offshore Services Examples.

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Hornbeck Offshore Services Examples.

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Hornbeck Offshore Services Examples.

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M/V Laney Chouest.

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M/V Dolores Chouest and DSV Turtle.

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M/V Carolyn Chouest.

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M/V Kellie Chouest.

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Offshore Petroleum Discharge System.

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RVIB Nathaniel B. Palmer.

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RVIB Laurence M. Gould.

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Tractor Tugs.

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M/V C-Champion.

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Supporting Research.

Analysis of Maritime Support Vessels and Acquisition Methods Utilized to Support Maritime Irregular Warfare

June, 2010MBA Professional Report, Naval Postgraduate School

By: William Clark, Christopher Kelley, and Justin BummaraAdvisors: Keenan Yoho and James Greene

Report posed the following questions: • Are leased/chartered ships meeting the requirements to

support MIW?• What is the most appropriate mechanism for acquiring vessels

to support MIW?

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Supporting Research.

Source: Clark, Kelley, Bummara“Analysis of Maritime Support Vessels and Acquisition Methods Utilized to Support Maritime Irregular Warfare”

LCS-1 HSV-2 C-Champion

Unit Cost $480,000,000

Baseline Lease cost $18,250,000 $7,569,000

Operating and Support Costs $61,700,000 $26,845,000 $2,588,000

Cost per day $221,644 $123,548 $27,827.40

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Supporting Research.

“As the defense budget becomes more constrained, all viableoptions to pursue needed technologies or platforms should beavailable.”

“Because of the cost advantage of the MV C-Champion, two orthree of these vessels could be deployed in an operational area atthe same cost per day or less as an HSV or LCS; therefore,ameliorating the disadvantage of being slowest to arrive at ascene of action.”

Source: Clark, Kelley, Bummara“Analysis of Maritime Support Vessels and Acquisition Methods Utilized to Support Maritime Irregular Warfare”

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Supporting Research.

“Leasing or chartering offers far more flexibility in highly dynamicoperational environments since option years can be exercised atthe discretion of the lessor. The flexibility of exercising a futureoption allows the lessor to find the best vessel to meet currentend-user requirements. Whereas vessel procurement incurs alikely 30-year obligation to support, maintain and utilize a vesseland limits the capacity to adapt to changing end-userrequirements.”

Source: Clark, Kelley, Bummara“Analysis of Maritime Support Vessels and Acquisition Methods Utilized to Support Maritime Irregular Warfare”

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Thank you.

Aaron Smith Offshore Marine Service Association

(504) [email protected]