For users of Kongsberg Products and services The FULL PICTURE magazine 01/07

...... 01/07 ...... The ...... FULL PICTURE ...... magazine ...... THEME Maximizing Drilling Performance

Transocean Rigorous attention to detail Seadrill Aiming for market leadership KONGSBERG Integrated Operations Pride International Fighting for personnel Aker Promar Shipbuilding samba GustoMSC Purposeful deepwater design

Building a rig is like assembling a massive puzzle

T. Alexander Krafft, Senior Vice President, Awilco Offshore Knut Wadet, Vice President, Awilco Offshore (left) ...... THE FULL PICTURE MAGAZINE 01/07 ...... THEME MaximizingIntelligent E Dnginesrilling Performance ...... Contents ...... ­­ Drilling feature 2The Full Picture at full speed ...... 4Transocean: Step up you game ...... 8 Pride International: Fighting for personnel ...... 10 Seadrill: Predictable excellence ...... A12wilco Offshore: Know your market ...... 15 GustoMSC: Purposeful deepwater design ...... Offshore supply O18tto Candies: Control your destiny ...... A20bdon Callais: Family matters ...... A22ker Promar: Shipbuilding samba ...... Driven by increased global demand for energy resources, the ...... 25 Harvey Gulf: Positioned for the future ...... offshore industry is in a period of rapid growth. Newbuilding or- ...... N26or Skan: At home in Brazil ...... ders for supply vessels, drill rigs and semi-submersible platforms ...... 27 cbo: Domestic pioneer ...... have filled yards to capacity, leaving many companies struggling ...... to recruit, train and retain adequate numbers of skilled work- ...... PRODUCTS 28Integrated Operations ...... ers to operate increasingly sophisticated equipment. Managing ...... C30anyon Express: Pipeline Management System ...... the pace of this growth has also been complicated by a more ...... regulated and competitive market and increasingly demanding ...... TRAINING 31 team training... on skis! ...... customers, who have no tolerance for sub-par performance...... A32dvanced training for DPOs ...... The industry has successfully cycled through boom periods in ...... T34raining news ...... the past, but this time it is different. The application of excit- ...... ing new technologies has enabled energy companies to access ...... SUPPORT 36Customer support in New Orleans ...... resources in deeper water, manage and monitor field operations ...... 37 Global support and Expo ...... electronically from offshore support centres and operate more ...... efficiently, safely and with less impact on the environment than ...... ever before...... For this issue of The Full Picture, we spoke to a broad range ...... of companies serving the offshore industry. From global drill ...... rig operators like Houston’s Transocean and Norway’s Seadrill, FOR USERS OF KONGSBERG PRODUCTS AND SERVICES ...... EDITORIAL STAFF PHOTOS ...... 01/07 ...... Gunvor Hatling Midtbø – Kongsberg Annar Bjørgli ...... to regional supply vessel operators in Brazil and the Gulf of ...... The ...... Maritime, Vice President Communication [email protected] ...... Mexico, the offshore industry is approaching these challenges ...... FULL PICTURE ...... [email protected] ...... magazine ...... Editor-in-chief Marcus Medellin ...... in different ways. Yet for all their differences, these companies THEME Maximising Drilling Performance ...... Transocean Rigorous attention to detail KONGSBERG Integrated Operations ...... Seadrill Aiming for market leadership Aker Promar Shipbuilding samba [email protected] ...... Pride International Fighting for personnel ...... Gusto MSC Petrobras pushes design ...... share one common goal: Reliable performance. CONTRIBUTORS ...... Building a rig is like a massive puzzle ...... T. Alexander Krafft, Senior Vice President, Awilco Offshore Rune Kvernberg Ryan Skinner ...... as a global provider of marine electronics, KONGSBERG re- Knut Wadet, Vice President, Awilco Offshore (left) ...... [email protected] [email protected] ...... mains committed to working with our customers to ensure they ...... Sam Hemeda Ricardo Balbi ...... can achieve dependable performance. But in such a rapidly [email protected] [email protected] ...... changing market, supplying quality systems is no longer enough ...... Anne Toril Kasin Karl Henrik Pedersen ...... – we must provide our customers with more comprehensive, for- [email protected] [email protected] ...... ward-looking services...... Bjørn-Owe Holmberg ...... ONGSBERG MANAGING EDITORS [email protected] ...... Today, K offers quality support and services, access ...... The Full Picture Magazine is a magazine BLUE International Communications ...... to training centres, and new, innovative next-generation techni- for users of KONGSBERG products and Frode Kleppe ...... services. For a complimentary copy of EDITORIAL PRODUCTION [email protected] ...... cal systems which enable our customers to achieve reliable op- ...... the magazine, please contact Kongsberg & GRAPHIC DESIGN ...... Maritime AS: ...... erations. Indeed, we recognise that our success depends on the BLUE International Communications Tony Andre Håvelsrud, Lars Graaner, ...... km. [email protected]...... Anne Toril Kasin and Ingar Tveiten ...... success of our customers. We understand that our value cannot The Full Picture Magazine is also available ...... COVER PHOTO KONGSBERG ...... in pdf-format at www.km.kongsberg.com ...... be measured exclusively by the equipment we provide, but by Annar Bjørgli ...... COPYRIGHT ...... our ability to work in close cooperation with our customers to PRINTING Kongsberg Maritime AS ...... Mediehuset GAN ...... provide them with the innovative tools and dedicated support ...... [email protected] ADDRESS ...... they require to meet the challenges of a changing industry. Kongsberg Maritime AS ...... Kirkegårdsveien 45 ...... P.O.Box 483 NO-3601 Kongsberg ...... GUNVOR HATLING MIDTBØ Norway ...... Telephone +47 32 28 50 00 ...... Kongsberg Maritime, Vice President - Communication Telefax +47 32 28 50 10 ...... [email protected] ...... THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE The FULL PICTURE magazine 01/07 Photo: Ryan Skinner / Illustration: Elisabeth Ziegler Søiland

...... Drilling feature MARINE COMPETENCE ...... Global: Norway: ...... Software Marketing ...... To improve delivery on complex projects and ...... Business Support ...... Key components ...... System Engineering ...... reduce costs while maintaining quality, Kongsberg ...... Software ...... Maritime has been building up its resources all ...... over the globe. Extensive recruitment and train- ...... ing processes in key ship- and rigbuilding coun- ...... tries like Korea, China and Singapore will allow ...... The Full Picture at full speed ...... Kongsberg Maritime to increase sales activity, ...... as well as engineering, procurement, installation ...... Asia: ...... Sales and commissioning, using on-site staff. This is a ...... Hardware ...... skills-based approach to better on-site project ...... KONGSBERG is far and away the leading provider of dynamic positioning and marine Installation ...... Commissioning execution for both KONGSBERG, its employees and ...... automation systems for the world’s deepsea drilling rig market – a market customers...... experiencing a boom unlike any it’s ever seen......

Members of KONGSBERG’s site team at the Jurong shipyard in Singapore: Ko Myat, Hwai Took Kong and Thomas Tojiman (left to right) – all ICS engi- KONGSBERG’s Dagfinn Omberg has been delivering marine monitors them, so you know they’re up and running. That’s neers. These engineers play a key role in the testing automation systems to drilling rigs since 1987. He’s seen his our challenge,” says Omberg. and commissioning phases of delivery at shipyards share of booms, but never any quite like this. “The global in Singapore. When this picture was taken, they market has never experienced a boom the likes of this one. Integrated delivery were testing an alarm system during a visit to We’re talking approximately 50 new rigs that need to be For KONGSBERG’s customers, the rig yards, the challenge Kongsberg, Norway. produced before this rush is over.” has to do with fast, high-quality delivery. As they feel the pressure to deliver, the yards and Kongsberg Maritime have grown closer. KONGSBERG’s project teams are brought into “Despite the number of deliveries, we the specification and design phases earlier than they ever ...... have been before. a focus on the software and hardware upgrades that will ...... CASE STUDY ...... are working closely with the shipyards ...... The key to speeding up the newbuilding process is speed- take place during this lifetime...... to work ever faster.” ing up commissioning, says Omberg. With close collabora- “The rig’s owners, the oil companies that employ them ...... KONGSBERG team passes...... (litmus) test ...... – Dagfinn Omberg tion in the earliest phases of the project, the end of the and – by extension – Kongsberg Maritime are all committed ...... Kongsberg Maritime has put...... tremendous resources ...... project and commissioning goes much quicker and more to a continuous mandate to keep the rigs state-of-the art,” ...... into its site team in Korea and...... China – hiring key per- ...... painlessly. As a result, the commissioning on some recent says Omberg...... sonnel, training them and giving...... them advanced proj- ...... Reliable, fault-tolerant systems projects has been reduced considerably. The support begins during commissioning, and continues ...... ect tools. These key teams ...... have their work cut out, ...... Kongsberg Maritime’s market share of dynamic positioning Kongsberg Maritime has significantly beefed up its site from the very start of a rig’s life. Kongsberg Maritime has a ...... with a series of critical project...... deliveries at three huge ...... and marine automation systems to this market is large. New teams to make all of this possible. Our Korean company support technician onboard each of the rig newbuildings for ...... Korean shipyards in coming...... years, and China the site ...... to this particular boom is the extent of KONGSBERG’s deliv- now has over 120 employees all within short distance from one year after commissioning. In addition, we run a number ...... of the greatest increase in building...... activity...... ery. Omberg’s project teams are often delivering what they several shipyards. The company has a team of Singaporean of 24-hour global support centres that “follow the sun”...... Their first test came in early...... February this year. A ...... call the “full picture”, including dynamic positioning, marine engineers working at the Jurong and Keppel Fels yard, as Another part of the upgrade and support picture is what ...... factory acceptance test in Norway...... – a weekly affair ...... automation, thruster control, navigation and safety systems. well as teams based in Dubai and China. might be called requirement inflation. As rigs are chartered ...... for Kongsberg Maritime – would...... simulate systems ...... “Each project is larger. And despite the number and size Efforts to build up and train these teams are getting full for specific operations, oil companies add new requirements...... destined for a Stena DrillMAX...... under construction at ...... of deliveries, we are working closely with the shipyards to priority. Kongsberg Maritime has made its strategy clear in “We worked on systems for an Ocean Rig unit called ...... Samsung Heavy Industries...... It would give the rela- ...... produce, test and commission these systems ever faster,” this respect; in order to provide strong service and support Eirik Raude, which was chartered to drill in the Barents Sea...... tively fresh Korean team its...... first real test...... says Omberg. to our shipyard customers, we need to invest in effective Because the area is a breeding ground for Atlantic cod, it ...... “It was an exciting run-up,...... with these energetic ...... Kongsberg Maritime has eight drilling rig and drillship site teams. The Korean and Chinese site team has already had to meet a zero-tolerance spill policy. Even rainwater on ...... guys putting in some long workdays...... The local pizza ...... projects together with Korea’s Samsung Heavy Industries been put to the test and demonstrated its value (see sidebar: the deck is collected and sent to land. These kinds of scen- ...... delivery guys noticed! The ...... test, of course, ended up ...... alone, and up to a half-dozen projects at other yards in “KONGSBERG team passes (litmus) test”). arios add new needs for performance, which we will meet,” ...... going very well. Samsung was...... delighted, and has even ...... Korea, Singapore and the Middle East. says Omberg...... more confidence in our ability...... to help them deliver ...... “We’ve won our position in the market due to our perfor- A 30-year lifetime More and more drilling is done in the Arctic, or otherwise ...... a series of drillships from their...... yard quickly,” says ...... mance. The ultimate challenge is reliability. These rigs need Kongsberg Maritime’s current orderbook will keep Omberg sensitive, areas, in ultra-deepwater and in harsh conditions...... to stay put for years at a time. There is no margin for failure. and his project teams very busy for the better part of a de- These demanding conditions drive an inflation of perfor- ...... Every little pump for a diesel generator set has to work, its cade. The systems that they deliver will last for as many as mance requirements. n back-up has to be operable, and you need a system that four or more decades, though, and Kongsberg Maritime has

  The FULL PICTURE magazine 01/07 THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE / Photo: Marcus medellin

...... Step up your game ...... Wise men say: Focus on the little things, and the big things will fall into place...... Transocean, the world’s leading drilling company, stakes its claim to technical ...... leadership by its rigourous attention to detail......

Transocean has made it clear to the market that it aims to be which is the same as the Enterprise series. There are some the leader in deepwater drilling. Along with a fleet of almost novel things related to the power plant, the thrusters and 30 deepwater drilling rigs, Transocean has three drillship the vessel management system, but the [DP and supervisory newbuildings under construction at Daewoo Shipbuilding control] architecture is pretty much the same KONGSBERG and Marine Engineering (DSME). These are due for delivery system.” in 2008 and 2009. These newbuilds are intended to enter a market for ultra- Where have you given special attention? deepwater drilling where some rigs earn over half a million PF: “Most of our extra effort has been on the power plant dollars a day. Adding a few percentage points to its effi- and thrusters to improve system robustness and availability. ciency in such a market can lead to seven-figure variations We’ve also done some work on the position references, as on the bottom line. there have been some issues there.” The Full Picture magazine spoke with two Transocean TL: “Pete has been doing good work in recent years im- managers that are working everyday on issues directly proving the value of our FMEAs (Failure Modes Effects related to this efficiency with respect to the dynamic pos- Analyses). We have concerns about common mode types itioning and controls on Transocean’s rigs. Terry Loftis, of failures. As a result, we’ve been pushing diversity in our Engineering Discipline Manager for DP and controls, and triplication of sensors. We look to combine different manu- Pete Fougere, Senior Engineering Manager for control sys- facturers and different models for our position reference tems, discuss their efforts to make an impact on up-time systems. That way we can avoid a software, operational or and safe vessel performance. administrative problem causing a common mode failure.”

What keeps you two busy right now? Reinvigorating the FMEA Terry Loftis (TL): “It’s kind of rapid fire. We’re like any- PF: “One major thing that was new in our FMEA concept… one else in the industry. Things are booming and there are we asked KONGSBERG to do the FMEA on their own equip- more things to do than people to do them. Right now, we ment, then that would be integrated into the overall vessel have an engineer assigned to the upgrade of Discoverer 534, FMEA. KONGSBERG knows their systems better and can go and another working as leader on the project to upgrade the deeper than the FMEA specialists can on these systems. I Sedco 702 to DP-2. After that he’ll continue with the Sedco see this having a lot of potential to improve the quality and 706. The DP and Controls discipline group is also playing a effectiveness of FMEAs and may even result in improve- supporting role on the three newbuilds at Daewoo.” ments to designs.” TL: “We realized that there could be more value in the What’s new on the newbuilds? FMEA than what we were getting out of them. So we took Pete Fougere (PF): “The newbuilds at DSME are a continu- responsibility, created a specification and now look to make ation on the Enterprise class, that includes the Discoverer the FMEA a living document, which the vessel owns and Enterprise, Discoverer Spirit and Discoverer Deep Seas, but maintains. We’re considering doing this with drill equip- these are an ‘enhanced Enterprise Class’ with substantial ment too. FMEA testing has always been a part of DP class Terry Loftis, Engineering Discipline Manager, equipment innovation.” requirements; we’re just looking at it far more critically than DP & Controls, Transocean TL: “These three newbuilds are all DNV classed to AUTR, we have before.”

  THEME Maximizing Drilling Performance The FULL PICTURE magazine 01/07

PF: “We have had great support from our management for Man and machine interface Pete Fougere, Senior Engineering Manager - all our efforts to improve the quality and effectiveness of PF: “Everyone is trying to take the manning situation into Control systems, Transocean FMEAs.” account when choosing equipment. Because of the growth TL: “We’re raising the bar on everything. We’re getting of our industry, many people operating this equipment in more sophisticated because our clients are getting more the future might not have the same experience as people demanding. Fault tolerance is a major issue. Things like today, so systems that are able to guide the operator to cor- FMEAs and HAZOP (Hazard and Operability) reviews are rect decisions are attractive.” now commonplace, and getting more focus.” TL: “Some of this boils down to ergonomics. You’ve got a number of people administering control of the rig. Interdependence on busy fields Ergonomically, all of the information that comes at them PF: “We’re doing more and more production drilling, de- [the DP operators] has to be presented in such a way that velopment drilling, simultaneous operations and work these people can rationalize it and respond quickly.” alongside pipe-laying vessels, survey vessels, production platforms and the like. Risks are higher. Some of these More data and “hardware in the loop” fields have greater congestion. There can even be potential TL: “One big move now concerns information. We’ve got for interference from acoustic position references because data, piles and piles of it. Now we want to, we need to use of traffic.” it. Clients want data to assess efficiency. We want it in en- TL: “We work closely with operations groups on these gineering to improve our performance. With specification, things. We evaluate simultaneous operations, and we keep we’re working towards an OPC compatible server, which it well-coordinated and well-choreographed. It’s not magic we’ve already imposed on KONGSBERG. This creates a re- How do you see COTS (Commercially Off-The-Shelf) Our rationale was based mostly on past performance with out there. It’s people and communications.” pository of information that we can share with partners and technology versus proprietary equipment? KONGSBERG systems. With KONGSBERG, when we’ve had a PF: “In some cases, we see that the client takes responsibili- clients.” PF: “We plan for a 10-year useful lifetime for electronic conversation, we walk away feeling like there’s been a good ty to organize traffic and ensure that things are coordinated, PF: “One example is the HIL (hardware in the loop) testing hardware. We’ve been able to extend lifetimes to 15 or 20 exchange [of ideas, and the objectives are clearly under- but that is still the exception, I’m afraid. It’s been a bit lais- we’re considering with the enhanced Enterprise class.” years with proprietary equipment, but not with COTS. It’s stood].” sez faire, but we see more and more clients increasing their TL: “For us, hardware in the loop is something that can a question of whether the proprietary supplier has planned PF: “What comes to mind when I think about KONGSBERG is awareness of this issue.” allow us to discover and rectify problems sooner, and avoid for long-term support and made the necessary commitment ‘professional’. When we buy systems, we expect excellent TL: “There’s always going to be lots of activity going on them in the shipyard. It has residual benefits long-term to to stock critical parts. KONGSBERG has done a good job with design, reliable performance and effective service and sup- underneath the surface. Knowing enough to use different help us validate software. Take, for example, an upgrade the proprietary approach, both in design and support com- port. It all adds up.” frequencies and managing acoustics comes down to people. with many new features; you install it and it crashes. That mitments. Because KONGSBERG has been so successful with TL: “Our expectations have always been exceedingly high Our clients recognize the amount of money we’re spending can be pretty horrific. We want to manage our risks by their approach, we regard it as a competitive advantage.” for KONGSBERG. And they’ve met those expectations.” n on training. We’re investing a lot of money into excellence looking at things early and being satisfied that it does what in DP competency.” we want. HIL testing has that benefit.” What is KONGSBERG supplying on the newbuild rigs? TL: “On these rigs, the DP system and the integrated con- trol system is all KONGSBERG, as are the safety systems.

...... THE MARKET LEADER ON THE MARKET ...... Market outlook Newbuilds Ultra deepwater demand Forecasting future costs Other geographic areas Delivery of competitors’ ...... Transocean is the world’s largest ...... “There seems to be a lot of questions “We are contemplating newbuilds. “Ultra deepwater demand remains “We think it is improving every “We are currently experiencing deepwater rigs from yard ...... offshore drilling contractor. These in the minds of investors regarding We are in discussion with one op- very strong with unsatisfied de- quarter, especially on the shipyard strength in all mature areas and “I continue to think that when you ...... the energy business with commodity erator about a newbuild. We have mand in the emerging areas of and maintenance side. There is a new demand is emerging in Libya, get close to delivery date and you ...... extracts from a February 2007 price volatility causing most of the been in discussions for a fairly long Mexico, Asia and India, while the lot more focus in looking out at our Mediterranean, Colombia, Venezuela start going through the commis- ...... concern. From our perspective, we time. There are some other operators more mature areas of the U.S. maintenance projects and our ship- and Southeast Asia.” – Mullen sioning process…, you are going to ...... conference call by Transocean’s ...... think this concern is unwarranted. out there who have some potential Gulf of Mexico, Brazil, Angola yard projects….Now we still have see some significant delays and…I ...... executives describe the company’s We have not seen any indication interest in newbuilds.” – Long and Nigeria continue to look to improvement opportunities and we wouldn’t be surprised to see an av- ...... from our customers that activity is add more deepwater capacity to are focused on that and there will erage delay of six months.” – Long ...... views on some key market ...... going to abate. On the contrary, we fulfill the backlog of development be a lot of volatility in costs this ...... continue to see a strong market in and exploration projects.” – David year depending on shipyard timing.” ...... developments.** ...... all asset classes and across all geo- Mullen, Tranocean SVP, Marketing – Greg Cauthen, Transocean SVP & ...... graphic areas where we compete.” & Planning CFO **These comments may include forward-looking statements regarding various matters related to ...... – Bob Long, Transocean CEO Transocean’s business and Company that are not historical facts, including future financial perfor- ...... mance, operating results and the prospects for the contract drilling business......

  THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE Photo: pride international

...... KONGSBERG SYSTEMS ON PRIDE INTERNATIONAL DRILLING RIGS ...... Pride South America ...... All five of Pride International’s DP semi-submersibles feature KONGSBERG DP 3 systems, ...... consisting of SDP 21 and SDP 11. They have KONGSBERG DGPS 700 systems and Dual ...... HiPAP500 acoustic systems, as well as acoustic control systems, ACS, for the shutdown ...... Pride International’s leadership has chosen to focus on employing and ...... of the BOP systems...... retaining the best people. They see personnel shortages everywhere they ...... look, whether in shipyards or with suppliers...... In 1984-85, the first Pride rig with a KONGSBERG DP system, the Semi Amethyst, was ...... built. KONGSBERG serviced this system for 18 years before upgrading it to the newer ...... SDP 21 and SDP 11 in 2002. This rig is now called the Pride South America...... “The long service life of our systems is due to our use of proprietary hardware and soft- ...... ware, as opposed to COTS – Commercially Off The Shelf – systems, which leave owners ...... more dependent on a vendors’ sub-suppliers and the longevity of service and support ...... Fighting for personnel ...... on these sub-systems,” says KONGSBERG Senior Sales Manager Jon Holvik......

If you drive around the U.S. Gulf coast for a day, you’ll see ment projects last year, and we’ll do close to 200 million this coming out in a short period, but the industry hasn’t trained Trusting key suppliers evidence everywhere of the tremendous oil and gas activ- year. This has been a challenge, and we’ve been fighting for up the people to fill the necessary positions. These jobs will Personnel scarcity also affects how Pride organizes its engi- ity taking place offshore. From the refineries that rise up our slots at the shipyards,” says Toufeeq. require sophisticated users with significant training,” he neering and interface management of onboard systems. “We alongside I-10 in Lake Charles, Louisiana, to the numerous Some of Pride’s older assets require special amounts of says. used to have a much greater hands-on approach to projects, shipyards dotting the bayou, the industry makes its pres- steel to be replaced. As an example, Toufeeq cites a recent Pride International has set up a detailed recruitment strat- ordering the equipment ourselves. Now we do a turn-key ence felt. However, another piece of scenery may be a more project in which Pride sought to change out 7,000 feet of egy, with a focus on in-house training and career planning approach where we rely on key suppliers like KONGSBERG telling sign of the state of the business: large roadside bill- pipe from the legs of one of its jack-ups. These materials tools that follow employees from the roustabout level and to do more integration and manage interfaces for us. boards proclaiming the value of building a career with this required special mill runs. all the way up. Where accommodation allows it, they are “We are in a situation where we have to trust a few inte- offshore company or that drilling contractor. “We have a different challenge than the newbuilders. putting more people on the rigs and expanding training ef- grated suppliers. We push these suppliers through the ship- Pride International is one of those companies making Typically, upgrade projects are shorter in duration than the forts during operations. yard because we need to. The yards often want to split up clear its wish to take on new staff, both via the large road- newbuilds. To be efficient and optimize time, our challenge Pride International has KONGSBERG DP and integrated the package, but we want something reliable, something we side billboards and more focused efforts towards third-party is planning and putting the key resources into place. Key control systems on a number of its semi-submersible rigs can maintain and a single contact. If I’m in West Africa or manpower agencies. “This is the biggest challenge we’re resources are the personnel experienced with the opera- (“we have used KONGSBERG on pretty much every single the Gulf of Mexico, I need to know that they’ll get someone facing as a company, and as an industry. Due to the cycli- tion and history of the equipment. We have to undertake newbuild and upgrade,” says Toufeeq) and cites training on a plane,” says Toufeeq. n cal nature of this business over the past 15 to 20 years, detailed audits and structural inspections and create quality as a key factor in Pride’s choice of KONGSBERG. To ensure we haven’t been good enough at bringing in talent that plans before we start the work,” he says. crews are prepared for any kind of emergency, Pride is we can train up to replace employees who are retiring,” The only thing worse than an overrun shipyard is no constantly running drills and training modules are specified says Ron Toufeeq, Pride International’s Vice President for shipyard at all, which is the problem for Pride in Brazil. with KONGSBERG in the procurement phase. Engineering and Technical Support. It wanted to overhaul its thrusters on the Pride South Pride International’s experience is a good indicator for the America, but there are no yards in Brazil big enough to ac- global drilling industry, as it operates in every major market commodate the dynamically positioned semi-submersible Ron Toufeeq, Vice President both on land and at sea. Toufeeq sees personnel shortages drilling rig. Eventually, Pride ordered a dry dock vessel to - Engineering and Technical on the shipyard side, among competitors, at suppliers and go to Brazil. Support, Pride International in-house as the single most influential factor steering devel- opments in engineering and technical issues. More Pride per person

Toufeeq calls for a joint effort in the drilling contractor in- ...... Getting the most out of a yard dustry to attract and retain personnel. Just as the industry ...... PRIDE BEST PRACTICE ...... Driven by drilling operations all over the world, Pride has come together to tackle safety issues and improve the ...... International is also active at yards worldwide, including industry safety record, companies need to work together to ...... Here’s how Pride plans to get and keep staff: ...... nearby yards in Brownsville and Pascagoula, and more attract quality personnel to improve the talent and experi- ...... • Expanded recruiting areas domestically and internationally ...... distant ones in Brazil and Malaysia. Unlike Transocean and ence in the industry. Otherwise, he fears that the companies ...... • Increased exposure at major and regional universities and technical schools ...... Norwegian speculators, Pride International hasn’t jumped will simply pirate personnel from each other and the entire ...... • Accelerated Development Programmes for existing and new hire employees ...... on the newbuilding wagon, but it does have extensive capi- industry will suffer...... • Competitive compensation programmes ...... tal projects related to a number of older rigs in its fleet. “There are at least 48 newbuilding floaters under con- ...... • Retention incentives ...... “We did about USD 250 million worth of life-enhance- struction and 68 new jack-ups. There are so many units ......

  THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE / Photo: frode kleppe & seadrill The FULL PICTURE magazine 01/07

...... “Our goal is to become one of the leading global players in the offshore ...... Seadrill: ...... drilling contracting segment within the next five years.” ...... Hilde Waaler, Seadrill Public Relations Manager ...... Predictable excellence ...... As a leading supplier of offshore drilling Located in Stavanger on the west coast of Norway, Seadrill personnel to operate our rigs,” he says. Bekkevold adds vantage. “In addition to supplying equipment, we highly Management’s unassuming headquarters are tucked be- that Seadrill will also source experienced personnel already value their participation in the installation process, depend contracting services to an industry which tween a small slipway and a construction site, where the in the organisation to meet greater demand for management on their excellent DP operator training programmes and ap- doesn’t like surprises, Seadrill has built a company is building a new office space. Inside, the working positions. preciate their excellent support services.” environment is busy but deceptively quiet for a company Seadrill, which has KONGSBERG systems installed on some strong reputation for being predictable, in the middle of an unprecedented expansion programme. A demanding market of their existing rigs, is currently evaluating KONGSBERG’s reliable and dedicated to the details. But Indeed, save for a few scale models of Seadrill jack-ups, Seadrill must also continue to meet the demanding op- remote monitoring service, which allows KONGSBERG semi-submersibles and drill ships, there is little evidence erational requirements of the oil majors and increasingly technicians to provide real-time support in the event of a with an ambitious newbuilding programme that the building is home to one of the most dynamic, inno- strict environmental regulations – including restrictions system error. “Having access to 24/7 support, which allows vative and ambitious offshore contractors in the industry. on nitrogen oxides (NO ) and carbon (CO ) emissions. But experienced KONGSBERG engineers here in Norway to moni- which will add eight deep-water drill rigs to x 2 According to Hilde Waaler, Seadrill Public Relations Bekkevold notes that the eight drilling units have been tor and resolve issues without losing time by going to the the world fleet by the end of 2008, Seadrill Manager, the company (together with partners), owns 34 designed to exceed existing environmental and safety stan- rig itself, is a real advantage, and one we are taking a close is anything but boring. drilling units, of which 14 are under construction, including dards and have been outfitted so that as new environmental look at,” says Bekkevold. semi-submersibles, jack-ups, shallow and deepwater tender technologies are introduced, they can be easily installed. rigs and drill ships. In addition, Seadrill provides platform “Our zero tolerance approach to environmental damage is Critical systems drilling, well intervention and engineering services. “We built into every part of our business – from rig design to Bekkevold, who compares Seadrill’s highly sophisticated Einar Bekkevold, are already active in four continents and 14 different coun- operations,” says Bekkevold. deep water rigs to “space shuttles”, says that KONGSBERG Technical Manager - tries,” she says, “However, our goal is to become a leading Waaler says that when the newbuilding programme is systems are an integral part of the successful operation Mobile Units, Seadrill (right) global player in the offshore drilling contracting segment complete, Seadrill will be one of the largest suppliers of of its semi-submersibles and drillships. “We depend on and Hilde Waaler, within the next five years, especially as a provider of deep offshore drilling contracting services in the world. But she’s KONGSBERG systems to be able to deliver the predictability Public Relations Manager, Seadrill water drilling services.” quick to add that the company’s real strength cannot be of service our customers demand,” he says. Indeed, with measured by the number of rigs it owns or operates. “We day rates for deep water drill rigs ranging between USD 400 An industry leader have 5,000 skilled and highly competent employees, many and 500,000 per day, any interruption of service (off hire) The West Hercules, now under construction at the At a cost of about USD 500 million each, Seadrill’s eight with more than 30 years’ experience, and thanks to our has a significant impact on both Seadrill and their customer. Daewoo Shipbuilding and Marine Engineering (DSME) shipyard is a deep water semi-submersible drilling rig deep water unit newbuilding programme is as audacious as history operating in harsh environments typically found in While oil majors choose offshore contractors based on equipped with Kongsberg DP systems. Once completed it is expensive, and has left many competitors scrambling North Sea, we have developed leading expertise in techno- a broad range of different criteria, their primary concern in June, 2008, the West Hercules will begin serving a contract for the Canadian-based energy company, to find yard capacity to place their own orders. But with logically advanced drilling operations,” she says. is reliable, predictable and safe operations. To ensure this Husky. an international shortage of drill rigs at a time of increased At present, Seadrill operates a broad range of rigs in reliability, Seadrill places crews on rigs up to six months demand, Seadrill has picked its moment wisely. “Acting the North Sea, the West Coast of Africa, Australia, and prior to a drilling programme to give them time to become first and acting decisively is a clear advantage,” says Einar Southeast Asia, and currently has contracts to provide ser- familiar with new systems, at the new units. While his is Bekkevold, Seadrill’s technical manager for Mobile Units. vices off the coast of China and the Gulf of Mexico. But to an expensive process, Seadrill feels it is necessary to ensure “We have the rigs, the expertise and the management sys- continue to expand globally, Seadrill must not only continue that the rigs are running at optimum performance before tem to support large scale deep water drilling programmes, to develop long-term relationships with energy companies, they begin a drilling programme. At the same time, the wherever they are.” but also establish long-term partnerships with global suppli- company’s long-term approach to employment has allowed While excited about the company’s expansion pro- ers, including Kongsberg Maritime. Seadrill to maintain some of the most experienced rig crews gramme, Bekkevold acknowledges that Seadrill faces many in the industry. challenges. Like many companies in the offshore industry, A reliable supplier Seadrill’s newbuilding programme is scheduled to be com- the scarcity of trained rig personnel has become an issue for As the industry’s leading provider of Dynamic Positioning plete by the end of 2008. Until then, the company, with the Seadrill. “We estimate we will need to add about 2,000 new (DP) systems, Kongsberg Maritime was a natural choice for help of its network of long-term global suppliers, will con- employees, who will require specialised training to operate Seadrill. “We were very happy that the shipyard chose to tinue to provide highly predictable services to the energy these sixth generation rigs,” he says. However, Bekkevold install KONGSBERG DP systems,” says Bekkevold. “This is industry. But it would be a mistake to assume the company notes that Seadrill’s recruiting and training initiative, coor- consistent with our strategy to establish long-term relation- has no surprises left for the future. “We are constantly dinated through Seadrill Academy, have added personnel at ships with global suppliers.” Bekkevold notes that work- looking for opportunities to leverage our expertise to pro- a rate of 30 a month since last year. “We are confident that ing with a single supplier is more efficient, and Kongsberg vide offshore contracting services and will continue to build we have taken the appropriate steps to recruit and train Maritime’s global service and support capability is an ad- our capacity in line with market demand,” says Waaler. n

10 11 THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE / The FULL PICTURE magazine 01/07 Photo: annar bjørgli & karl henrik pedersen / illustration:a wilco offshore

...... Knut Wadet, Vice President, ...... Awilco Offshore (left) ...... and T. Alexander Krafft, Senior Vice President, ...... Know yourself...... Awilco Offshore ...... Know your market...... Awilco Offshore combines good timing, a very good concept and ...... an exceptionally good contracting strategy in its order for 1+3 ...... “Part of the reason that we ...... semi-submersible rigs at China’s Yantai Raffles Shipyard...... can do this is the proven ...... delivery of turn-key ...... American drilling giants the likes of Transocean, Global and another with Yantai Raffles, which would contract ...... solutions from technology ...... SantaFe, Noble Drilling, Pride International and Diamond a consortium of suppliers approved by Awilco Offshore...... companies like Kongsberg Offshore are not speculators in rig newbuilds. They order These were Wärtsilä, ABB, Siemens and KONGSBERG. These ...... new rigs only against secure employment contracts. would co-operate on a project basis, ensuring that responsi- ...... Maritime” Cross the Atlantic to Norway and the tone changes. The bility for interfaces between sub-systems and components ...... Norwegians have been building drilling rigs on a specula- wouldn’t fall between the cracks and onto Awilco Offshore...... – Knut Wadet, Vice President, Awilco Offshore tive basis for years. One of those Norwegian companies It’s a vital form of security for both rig owners and future ...... willing to invest, called OffRig, put in a very special order operators...... at China’s Yantai Raffles Shipyard for 1+3 rigs. Awilco “75 per cent of our components come from Norwegian ...... Offshore, an experienced offshore operator, saw the value suppliers. These are companies familiar with Norwegian ...... of these rigs and swallowed OffRig whole. rules for offshore operations. And we’re working with DNV ...... “These semi-sub newbuilds are targeted at a specific niche for certification,” says Tomren...... in the market for smaller DP-3 rigs that can drill in 1000 Tomren and his Vice President for Projects Kolbjørn ...... meters water depth, as opposed to many ultra-deepwater Akselvoll hold weekly video conferences with the yard’s ...... monsters being built today,” says Awilco Offshore Senior top management and one of them is in China every month...... WilPioneer, the first of Vice President T. Alexander Krafft. The rigs cost USD 200 Awilco Offshore has a team of roughly 20 employees from ...... Awilco Offshore’s series of newbuild million less than such monstrous rigs cost today. And the 8 different nations working on-site at the yard. The yard is ...... semi-submersible rigs, is under purchasing strategy split the delivery into well-coordinated also undergoing improvements to the tune of USD 80-100 ...... construction at China’s Yantai packages that would side-step interface problems and drive million...... Raffles Shipyard. It is due for down the risk of building at a less experienced Chinese ...... delivery in second quarter 2008. yard...... In late March 2007, Awilco Offshore’s newbuild strategy ...... succeeded. Hydro announced a firm contract for two of the ...... FULL PICTURE ONBOARD ...... rigs on behalf of the license partners for the Troll field in ...... the North Sea. The total contract value: USD 1.37 billion, ...... For the three newbuilding ...... rigs that Awilco ...... plus mobilisation cost...... Offshore is building at the ...... Yantai Raffles ...... Shipyard in China, Kongsberg...... Maritime is pro- ...... A question of comfort level ...... viding what it calls the Full...... Picture: the bridge ...... “Building a rig is like a massive puzzle. There are suppliers ...... system, a large automation...... system, DP 3, ...... on every continent making components destined for these ...... control systems and hydro-acoustic...... systems...... rigs,” says Awilco Offshore President Petter Tomren. “We ...... Kongsberg Maritime China...... employs almost ...... have used a contracting strategy, whereby we were quite ...... 100 technicians who are working...... on-site at ...... honest with ourselves. We recognized that the biggest risk ...... Chinese yards to support installation...... and com- ...... we faced was the construction risk. Yantai Raffles had not ...... missioning...... built a semi-submersible before. That could be a cause for ...... anxiety.” ...... The contracting strategy meant Awilco Offshore signed ...... two contracts: one with National Oilwell Varco of Norway ......

12 13 THEME Maximizing Drilling Performance THEME Maximising Drilling Performance Article by THE FULL PICTURE MAGAZINE / photo: MARCUS MEDETLLheIN FU &LL GUSTO PICTUREMSC magazine 01/07

Akselvoll comments: “Things progress at Yantai as we way there. They said we wouldn’t get contracts. We’ve got The Odebrecht Semisub NORB VI (pictured) Leading designer of drillships expected they would. It takes a bit more time, and you those, and the yard hasn’t even started cutting steel on and Queiroz Galvao LONE STAR sistership are need to apply steady pressure. We are very happy to see some of these,” says Tomren. GustoMSC designs being built at the GPC yard in and drilling rigs GustoMSC the yard gain managers from Korea: Samsung, Daewoo and Granted, Awilco Offshore is new to the drilling market, Abu Dhabi for delivery in 2009 other yards. The two reasons we feel comfortable right now and its management has recognized the need to demonstrate must strike a balance between are this Korean management and our contracting strategy.” its performance. Its management averages over 25 years in the offshore oil and gas industry, with experience from all cost and performance, and Perfect fit for market sides of operations, management and contracting. These rigs will be made-to-order for the North Sea market, “There are fifty of us here now. We started with three, between the wills of build- but they’ll also be ideal for use in the Gulf of Mexico, off- and we’ll grow to as many as 650 for manning of three rigs shore Brazil and any other area in less than 1000 meters of plus one. Right now, we’re slowly building up our opera- ers and owners. They relied water. Even the Barents Sea will be a possible operating site tional organization, but we’ll start hiring more in late 2007 for these drilling units, as they are prepared for winterisa- and 2008,” says Tomren. n exclusively on KONGSBERG for tion and much of this offshore area is in the 300 meter depth range. the Integrated Automation “We started with this concept: Let’s make a rig that can ...... cover 95 per cent of the North Sea market. We are alone ...... Systems for a series of drilling ...... A HISTORY OF SUCCESS OFFSHORE in the world building new semi-submersibles that aren’t ...... deepwater. We offer the market a workhorse of a rig with ...... Since the 1970s, Awilco Offshore has explored new ideas ...... rigs...... top modern equipment and DP. The only other rigs with ...... and innovation in the offshore oil and gas exploration and ...... DP are much, much larger and much more expensive,” says ...... production markets. Its first significant involvement was ...... Tomren...... in diving support vessels (DSVs). Its DSV Wilchief was one ...... Purposeful Deepwater Design BP has signed a Letter-of-Intent on one of these new- ...... of the world’s most technologically advanced in its class ...... builds, for use on its Skarv field in the North Sea. With the ...... when it was delivered in 1984. The company was also ...... decision by Hydro to contract the remaining two rigs that ...... an early player in shuttle tankers with DP. In the 1990s, ...... are on order, Awilco Offshore has officially “sold out” its ...... Awilco Offshore entered the market for accommodation “The difference between GustoMSC and other drilling rig Know what they want ...... existing semi-submersible orders. Whether the company ex-...... platforms – a business it still operates. Today the company designers is that we bring an understanding of the full pic- Frimm explains that Petrobras set the rig orders in motion ...... ercises its option for a fourth rig remains to be seen...... has a fleet – either in operation or on order – of a total of ture to the table. Our designs are, in a sense, more complete. a few years ago when it realized that it would need more ...... 14 units: 2 accommodation units, 8 drilling jack-ups and We have operational experience, building experience, and dynamically positioned rigs to make its drilling programme...... Prove yourself ...... the 3+1 semi rigs. In addition, Awilco Offshore owns 50 engineering experience. Our approach is from the perspec- The Brazilian drilling contractors responded by seeking an ...... “One year ago, many said we couldn’t pull this off. They ...... per cent of the drilling rig operating company Premium tive of an integrated rig system, not a hull with a ‘black efficient solution with very detailed specifications for the ...... said we wouldn’t be able to get the financing. We have...... Drilling, which by year’s end 2007 will have 9 units in box’ set of drilling equipment defined by the client,” says rigs’ size, capacity and performance...... They said we couldn’t get the people. We’re well under- ...... operation. GustoMSC’s David Fetterly, Manager of Drilling & Marine “We immediately recognized this as an opportunity for a ...... Systems. fit-for-purpose design. The Brazilian clients knew precisely The GustoMSC organization, today part of the SBM what they wanted, with demanding functional specifications Offshore Group, was responsible for the very first dynami- for drilling equipment, station-keeping performance and us- cally positioned drillships in the 1970s, the so-called Pelican able free deck areas – applicable not only for Brazil but also class. Over the years, the company has designed some 100+ for the international drilling market,” says Fetterly. drillships and drilling rigs. Currently, ten GustoMSC-de- While Petrobras met the international drilling market to signed deepwater semi-submersible drilling rigs are under get the rigs built, the Brazilian drilling community increas- construction. ingly saw the situation as a golden opportunity to provide For three of these ongoing projects, the parent company more services to the national oil company. GustoMSC fer- of GustoMSC, SBM Offshore, has also taken on responsibil- ried between these Brazilian drilling contractors and the ap- ity to build the rigs, and in each of these cases the customer propriate ship and fabrication yards to talk about specifica- is a Brazilian drilling company. Behind the specifications tions and the rig’s design. for these rigs is the Brazilian oil company Petrobras, whose “Before we had even signed any contracts, we had our tremendous deep-sea drilling experience translates to high equipment pretty much locked down. We hadn’t made requirements for station-keeping. any purchases yet, but we had delivery dates in hand. Fetterly and his colleague, Fernando Frimm – VP for Strategically, we intentionally divided the onboard control Marketing & Sales at GustoMSC, Inc., describe how and systems into two over-arching systems: one for vessel man- why they chose to equip the rigs with the full picture from agement and one for drilling. KONGSBERG was our choice for KONGSBERG, one integrated system for the marine equip- the vessel management, or Integrated Automation System,” ment. It was a question of quality, cost and experience. says Fetterly. Kolbjørn Akselvoll, Vice President Petter Tomren, President/CEO, Awilco Offshore Semi - Projects, Awilco Offshore Semi

14 15 THEME Maximizing Drilling Performance The FULL PICTURE magazine 01/07

GustoMSC’s initial strategy was to license its design to support. Even though we will not be the end user, these established shipyards. In an increasingly heated market for users’ requirements for Brazilian support was an integral Jon Holvik, Senior Sales Manager, Kongsberg Maritime Inc. (left), new rigs, the Brazilian drilling contractors – aware of SBM part of the decision process. KONGSBERG has strong service W. David Fetterly, P.E., Manager of Drilling & Marine Systems, GustoMSC, Inc. (center) Offshore’s tremendous experience constructing and con- in Brazil, and we know that they will provide first-class and Fernando Frimm, Ph.D., Vice President Marketing & Sales, GustoMSC, Inc. verting FPSOs – wondered whether Gusto MSC couldn’t also support to the drilling contractors.” n construct the rigs. “We started by selling a design, and ended up selling a rig. We will hand over the finished rig after sea trials. It’s a novel way of doing things, but it suits us very well, as our group of companies can provide all of the necessary services for the project, and do it in a time schedule acceptable to ...... the customers,” says Fetterly...... EXPERT OPINION ...... Supplying full answers ...... Trends in rig design ...... “They [Petrobras] have the most rigorous station-keeping ...... Fernando Frimm discusses some of the ways that the ...... requirements of any set of codes. The reason that they can ...... drilling rig design field has been developing...... be so specific is that they have an order of magnitude more ...... • People are spending more these days to get efficiencies ...... experience with DP vessels operating in Brazil than anyone ...... out of their equipment. As designers, we are asked by ...... else,” says Frimm...... our customers about particular components’ operational ...... Frimm and Fetterly carefully explain how the Brazilian ...... performance. They ask: What are this component’s ...... contractors’ requirements include Petrobras performance ...... failure modes? Do we have enough redundancies? Can ...... requirements for station-keeping that equate to what might ...... we still operate with a failure? What about two? ...... be called an enhanced class 2 DP system, and how such a ...... • Ten years ago, we saw deepwater drilling companies ...... system in many ways exceeds the class threes in reliability...... putting the focus on increasing their drilling efficiency...... “The DP2 criteria here are much more rigorous than DP3 ...... They wanted to get the most out of their time drilling...... requirements short of fire or flooding of one compartment...... • Five years ago, they felt that drilling was efficient, but ...... All of the station-keeping is triple redundant and opera- ...... sought to optimise how they spent the rest of their ...... tional requirements for generator capacity and propellors ...... time, such as preparing for the actual deployments in ...... without allowing degradation in operating environment are ...... the moon pool. This boils down to improving efficien- ...... very clear,” says Frimm...... cies in the overall drilling programs, especially for ...... Fetterly lists some of the reasons why KONGSBERG was ...... development drilling. In development drilling, you have ...... chosen as such a key system supplier for these rigs. “It’s the ...... lots of materials on deck that you need to move ...... difference between someone who is just going to give you ...... around, which gives challenges to layout...... some hardware and someone who gives you full answers,” ...... • Finally, we see a shift whereby drilling contractors are ...... says Fetterly. “KONGSBERG supplies engineering, installation ...... putting more of the risk associated with a newbuild rig ...... and commissioning support and interface management so ...... or conversion on the builder. The clients establish a set ...... we know everything works together...... of performance requirements, and then let the builder ...... “Another vital point for us was, of course, after-sales ...... choose how to deliver this kind of performance...... ABOUT THE CONTRIBUTORS ...... Fernando Frimm, Ph.D., ...... W. David Fetterly, P.E., Manager of Drilling & Marine Fernando Frimm, Ph.D., Vice President Marketing & ...... Vice President Marketing & Sales, ...... Systems, GustoMSC, Inc. Sales, GustoMSC, Inc...... GustoMSC, Inc...... A native Texan, Fetterly got his start with oilfield services Born and raised in São Paolo, Brazil, Frimm studied naval ...... in Schlumberger. From there, he got into the drilling con- architecture first in Brazil, then at the Massachusetts ...... tractor side of the business with Dual Drilling and Ensco Institute of Technology (MIT) in the US. He came to ...... Offshore, and has since steadily alternated between the Houston in the 80s and started working immediately on ...... operations side and the engineering side of the business new technologies in offshore, including participation in the ...... throughout his career. He joined GustoMSC, Inc. in 2002 as group behind the SPAR platform design. Curiously, Frimm ...... the company sought to add expertise on the operations side. played an integral role in the design team behind the hull ...... 3 ...... for the America yacht that won the America’s Cup in 1992 ...... in San Diego......

16 17 THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE / Photo: Ryan skinner & otto candies, llc The FULL PICTURE magazine 01/07 Control Your Destiny

Specialist offshore vessel operator Otto Candies aims to invest in modern vessels at a modest pace. By acquiring a shipyard in the midst of a building boom and choosing suppliers with long-term commitments to support and service, Otto Candies assures that it gets what it needs now, and down the road.

...... Otto Candies’ headquarters are tucked in a modest one-level days, with construction boats, ROVs, cranes and winches, ...... homelike building alongside Highway 90 in Des Allemands, and this has been a positive development for us.” ...... roughly 50 kilometers southwest of New Orleans. Sidney The hurricane season of 2005 led to an unsurprising boom ...... Candies’ office, decorated with stags’ heads and football in demand for the Gulf offshore market, and particularly for ...... helmet trophies, looks like it could be someone’s den. His construction vessels. At the same time, their customer base ...... actual home isn’t far off, and neither are the homes of his has grown more sophisticated, more stringent and more de- ...... two brothers and sister, all active in the family business, as manding...... are most members of the strikingly male-dominated Candies “There’s much more detail-oriented procurement. They ...... family. go from top to bottom. What can your boat do? What sys- ...... Sidney Candies, Maintenance Manager, Otto Candies, L.L.C. Otto Candies, L.L.C. resembles a number of the family- tems do you have? How was it built? Price will always be ...... owned offshore companies that sprung up along the Gulf a factor, but the driving force in today’s market is safety...... coast over the past 50 years. Usually, it starts with a hard- Customers don’t want incidents and they don’t want down- ...... working patriarch asked to complete small jobs by an oil time,” says Candies...... major. Capt. Otto Candies started by clearing an access canal ...... for Humble Oil (today’s ExxonMobil). Long-term focus ...... Closely knit to their communities, committed to long-term One of the areas where Otto Candies’ customers are getting ...... “We tend to shop more for after the sale. We’re very ...... relationships and always willing to consider new activities increasingly demanding is in dynamic positioning. Of the ...... big on service and commitment to the partnership. if they’re profitable, these companies are local champions. four vessels under construction for Otto Candies, three of ...... Otto Candies, however, has grown a little faster, taken part them will be DP-2 class. All of these DP systems are being ...... KONGSBERG has made a commitment. They’ve opened in more new projects and undertaken more ambitious as- supplied by KONGSBERG...... signments than most of its peers. Their modest newbuilding Otto Candies incorporates long-term training support ...... strategy belies perhaps a less conservative approach to busi- agreements into the quote process when it acquires its ...... a shop here with a good group of service people, good ...... Chloe Candies, recently delivered from the Candies’ shipyard in Houma, Louisiana, is equipped ness development. DP systems. As a result, it has been regularly sending DP ...... engineers. They’ve made a strong commitment to ser- with a DP system from Kongsberg Maritime. operators and captains to take classes with KONGSBERG on ...... Chose to buy the yard their days off. Again, this helps the company cope with in- ...... vicing the product after they’ve sold it.” “Just within the past year, we purchased our own shipyard creasingly stringent licensing and customer demands for DP ...... just down the road in Houma. They’ve built a number of safety...... n ...... vessels for us through the years. When we saw the ship- ...... - Sidney Candies...... KONGSBERG ONBOARD ...... building market begin to tighten, we seized an opportunity ...... to buy the shipyard. That way, we could be sure to feed To date, KONGSBERG has delivered three DP systems to ...... our own machine, so to speak,” says Sidney Candies, Otto Otto Candies vessels, and has orders for four more to ...... Candies’ Maintenance Manager. be delivered over the next two years...... The Houma shipyard has just delivered the Chloe Candies, ...... and has three additional Candies vessels under construction, “Our goal is to help make our customers’ vessels pre- ...... as well as an option for one more: an inspection/mainte- ferred over their competitors. That is the long-term ...... nance vessel. The company has another construction vessel commitment that customers like Otto Candies and ...... being built at the Dakota Creek shipyard in Washington. others appreciate and consider when choosing their ...... “We’ve got some things on the drawing board that we’re DP vendor,” says Nick Van Overdam of KONGSBERG ...... discussing with potential customers, primarily deepwater North America...... equipment,” says Candies. “We’re diversifying more these ......

18 19 THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE / Photo: Ryan skinner & Abdon callais The FULL PICTURE magazine 01/07

...... M/V Father John Keller is one of Abdon Callais’ DP-1 ...... supply vessels. Abdon Callais’ Catholic owners name ...... many of their vessels after Catholic luminaries...... Family Matters ...... “We take care of our ...... Recognised as one of America’s fastest growing companies for four years ...... people not only because ...... running, Abdon Callais has invested heavily to build one of the most modern ...... fleets of offshore supply vessels operating in the Gulf of Mexico. But the ...... it’s good business, but ...... company has also invested a lot of time and energy into something they ...... because it is the right ...... believe is more important: family values...... thing to do.” ...... Bill Foret, Senior Vice President, Abdon Callais Offshore ......

Focus on people mities and zero observations. “Usually the process takes a the money. “Being a good employer not only helps us attract Bill Foret, Senior Vice President of Abdon Callais, says that couple of days. But because we were prepared, we were able skilled crews, but is consistent with the values of the Callais the company’s focus on developing long-term relationships to satisfy the ABS auditor in about four hours,” he says. “A family,” he says. “At the end of the day, we want our people with its employees is critical to the successful operation of lot of companies don’t like audits, but we welcome visits by to be safe, and get them home to their families safely.” the vessels. “Our industry has always been characterised the ABS and I know they appreciate our professionalism.” by high employee turnover, and with so much drilling and While the company’s Quality Safety Management System Building long-term relationships reconstruction activity going on in the gulf right now, com- is an effective tool, Foret says any QHSE programme requires In addition to a modern fleet and skilled personnel, Abdon petition is fierce,” he says. “To attract, train and retain good a team effort – at sea and on land. Foret meets frequently Callais relies on quality equipment to deliver quality service people, we need to do things a little bit different.” with representatives of the sales and marketing department to its customers. To meet this challenge, Abdon Callais is Foret says that the company offers workers good wages as well as logistics. He also meets with human resources twice equipping its newbuild DP supply vessels with KONGSBERG and strong benefit programmes, including making contri- a day to keep up with news from the fleet. “There are no systems. “With KONGSBERG DP systems, we can keep our butions to their workers’ 401(k) retirement plans, bonus walls between departments in our organisation,” says Foret. position within one meter,” says Bill Foret. “We have con- money, holiday pay and good life and health insurance “Problems start when people don’t communicate, so if I see sistently outperformed much larger vessels operated by our Bill Foret, Senior Vice When Abdon Callais converted a shrimp trawler into an off- coverage. The company has also significantly improved walls coming up, I knock them down.” competitors in rough seas, and the industry notices that.” President, Abdon Callais shore service vessel in 1945, he not only started a success- onboard living conditions and recruited some good galley At present, KONGSBERG DP systems are used on 10 vessels Offshore and Keith Carlson, ful company, but one that was run more like a family than chefs – a big plus for hungry deckhands. Workers get paid Employee participation in the Abdon Callais fleet, and all future newbuilds will have Logistics and Marketing a business. Abdon passed the business on to his son Harold, weekly, not bi-weekly or monthly, allowing them to make Abdon Callais has also implemented the Safety Through KONGSBERG DP1 and DP2 systems installed as the company Manager, Abdon Callais who steered the company through the oil slump during better financial decisions. Employee Participation (STEP) programme, which encourages continues to expand. Foret says that in addition to qual- Offshore (right) the 1980s. In 1993, Abdon’s grandson Peter took over and But Abdon Callais also builds trust among its workers in all employees to complete and submit STEP cards related to ity products, KONGSBERG has an excellent training, service began rebuilding the fleet, creating one of the fastest grow- other ways. Unlike many other competitors, captains have onboard safety issues. After collecting the cards, manage- and support capacity. “To deliver quality services, we must ing companies in America. While the company has changed wide discretion to stop work if they feel the job puts their ment organises the data for analysis, and can introduce new choose suppliers who not only have the right equipment, but a lot in the past 50 years, the owners, management and crew or vessel at risk, and can expect the full support of the safety procedures rapidly, or congratulate individuals for share our dedication to quality, efficiency and customer ser- workers still think of Abdon Callais as family. organisation. This support for workers starts at the top. quality work. Foret, who reads every card personally, says vice,” says Foret. “KONGSBERG fits the bill.” And Abdon Callais has become a very big family. Today, that the programme has significantly improved safety and the company has about 500 employees and a fleet of 32 Safe, legal and ethical helped build a sense of teamwork. “We get about 3,000 cards A growing family vessels supplying a broad range of services to oil compa- Abdon Callais’ workers benefit from the company’s ambi- a year,” says Foret. “That tells me that people are getting in- While Abdon Callais will continue to build capacity to serve nies and contractors in the Gulf of Mexico. The company tious Quality, Health, Safety and Environmental (QHSE) volved, and that makes us a better company.” customers in the Gulf of Mexico, the company also has operates a broad range of supply boats. With an average programme, designed to ensure safe, legal and ethical op- In an industry characterised by increasingly demanding plans to diversify the fleet to provide other services (such as vessel age of 3.5 years, Abdon Callais has one of the most erations. The company is also certified as ISO 9001, and its customers and strict regulations, strengthening the compa- providing support for seismic surveys), and may enter into modern fleets now operating in the Gulf. But while the fleet Quality Safety Management System has been accredited by ny’s onboard QHSE performance is not just an advantage, it’s joint-ventures with other companies in other parts of the is young, the company has been remarkably successful in the American Bureau of Shipping (ABS). Indeed, during a a necessity. And while the company’s Safety Management world. “We have the fleet, the personnel, and the ambition to retaining experienced captains, engineers and deckhands. So recent ABS audit, the company recorded zero non-confor System has resulted in lower insurance premiums, and re- keep growing,” says Foret. “But no matter where we go, we what’s their secret? duced costs related to injuries, Foret says that it’s not about will remain consistent with our values.” n

20 21 THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE / Photo: ricardo balbi & aker promar The FULL PICTURE magazine 01/07

When the Goldman Sachs investment bank coined the term technology equipped to the DP-3 standard. They are the BRIC in its 2003 report, Brazil was lumped together with most sophisticated vessels built at the yard yet and highly Russia, India and China as a nation that will drive global representative for the direction Aker Promar is going. economic growth, and eclipse today’s economic giants by Says the yard’s director, Paulo Rolim: “We believe that 2050. Brazil’s access to valuable raw materials, includ- we will succeed by focusing on offshore and specialized ing offshore petroleum and manpower are powering this vessels. Step by step, we’ll be competing on more sophis- growth. ticated tonnage. There will be a huge market for this in A Brazilian shipbuilding industry that had seen its glory Brazil.” days in the 1970s is experiencing a renaissance thanks to a Rolim concedes that the Brazilian yards build at a slightly combination of political will within Brazil and financial and higher price compared to the Far East, but argues that technical muscle from abroad – both eager to play off this they’re very competitive when Brazilian buyers or operators growing economic strength. A series of drilling rigs currently look at the whole picture. The Asian yards have little capac- under construction for Brazilian contractors (see the article ity and prices are rising fast; faster delivery times, attractive on Gusto MSC on p. 15) is one expression of this growing financing and flag protection in Brazil combine to make up confidence. That the entire fleet renewal programme of 42 for any price differences anyway. tankers for Transpetro (the transportation arm of Brazil’s Rolim feels like Aker Promar has a powerful advantage state oil company Petrobras) will be built in Brazil between over its domestic competitors in financing. “While many now and 2015 is another. other yards need the owners to assume part of the con- With the help of Norwegian kroner and technology and struction risk to get financing, we can get guarantees from domestic incentives, Aker Promar is one of a handful of Aker Yards. This is why we’ve been so successful with spec- Brazilian shipyards undergoing rapid growth and modern- ulators in offshore newbuilding. They trust us to deliver, ization. Aker Promar will open a new facility between the so they sign for a newbuilding based on a conviction that cities of Macaé and Campos (150-200 kilometers northeast they’ll win business with Petrobras. Without backing from of Rio de Janeiro) by the end of 2008. At these facilities, Aker Yards as a loan guarantor, this wouldn’t be possible.” the yard will combine training and technology-sharing Aker Yards acquired a 51 per cent share in the shipyard programmes to build steadily more sophisticated tonnage. in 2001. Its aim has been to meet its offshore customers’ Along with highly advanced dynamically positioned anchor- wishes to serve the Brazilian offshore market with Brazilian- handlers, Aker Promar has won contracts to build an ROV built tonnage at minimum risk. Aker Yards is pushing tech- support vessel and two offshore subsea construction and nological development at the yard by investing in its design maintenance vessels for Geo and Dofcon, partners in Brazil’s and project management tools, and adapting designs from NorSkan. its own Aker Yards Design company for construction in Brazil. A question of where and how Rolim sees promise in these new designs, new segments

...... These three recent newbuilding orders at Aker Promar (see and tonnage types. Subsea work offshore is driving a need ...... article on NorSkan on p. 26) are highly advanced pieces of for more construction vessels. Well intervention will also ...... Shipbuilding Samba ...... Guaranteed loans, infrastructure investments, ...... technology injection from foreign partners and market forces are ...... playing a tune Brazilian shipyard Aker Promar can dance to...... Paulo Rolin, Yard Director, Aker Promar ...... 23

22 THEME Maximizing Drilling Performance THEME Maximising Drilling Performance Article by THE FULL PICTURE MAGAZINE / Photo: ryan skinnerThe F&U LLharve PICTUREy gu magazinelf 01/07

...... Environmentally sound investment ...... Harvey Gulf International ...... Greenfield investments are typically designed to make money ...... quick, at the expense of local aesthetic, environmental or ...... Marine is in the midst of an ...... social concerns. That won’t be the case at Aker Promar’s new ...... USD 200 million construc- ...... site. Because dredging of the 150 meter wide nearby channel ...... will interrupt tides and lead to deformation of the coastline, ...... tion program, including five ...... the investors will install a bypass system developed in the USA ...... DP-2 newbuildings and one ...... Harvey Discovery is a multi-purpose ...... and Australia. This system of pipes and pumps will simulate ...... diving support vessel with DP-2 certification...... the effect of natural currents, thereby preserving the coast- ...... upgrade to DP-1. “The only ...... line. Investors today incur costs that pioneers could safely ...... thing I owner-furnish on my ...... ignore decades ago, but new technology and consciousness ...... gives their investments more long-term sustainability...... vessels is the KONGSBERG DP ...... system,” says Harvey Gulf’s ...... President Shane Guidry...... Aker Promar’s shipyard has a 100 meter launching slipway, but its new location will fea- ...... ture a lifing dock, that measures 132 meters by 34 meters...... Shane Guidry, President, Harvey Gulf International Marine

increase as some fields grow mature. He sees openings in kilometers, or about two hours sailing – and local authorities the newbuilding market for specialized vessels in Brazilian have created attractive incentives to support the invest- Positioned for the future cabotage. Brazilian regulations similar to the Jones Act in ment,” says Rolim. the USA create opportunities for operators using Brazilian- The new facility will feature a lifting dock measuring 132 Harvey Gulf was one of the first offshore operators in the Discovery, a recently commissioned dive support vessel, fea- built tonnage. Rolim says Aker Promar might build chemical by 34 meters, and its closest neighbours will include an off- Gulf of Mexico to react to the market’s upswing for larger tures three DP control stations and several advanced naviga- carriers, gas carriers or small container vessels. shore support base and a number of key offshore and steel support vessels that could complete different tasks in deep tion aids including a HiPAP 500® position reference system. suppliers. It will have a capacity of 12,000 tons of steel per water. “We had an alliance contract with an oil major. I “All of the DP-2 newbuildings will have the RADius sys- Massive expansion year compared to the 5,000 at its current site. would attend their scheduling meetings, and you could see tem, which will allow the vessels to maintain position even Aker Promar’s yard at Conceicao Island, Nitteroi, however, “We have made agreements with the neighbouring cities that they were looking more and more at deepwater projects if they lose both primary satellite position systems. It’s an is far too small to accommodate even these small cabotage to create special courses to train the workforce. In addition, in the Gulf,” says Guidry. extra reference system to make it even safer for the guys,” newbuildings. Already, one of the OSVs Aker Promar will we will move some key personnel from our existing site This foresight led Guidry and Harvey Gulf to invest in two says Guidry. deliver next year is, at 142 meters, too big for the yard’s here. The idea is to have around 1,200 employees at this large DP-2 newbuildings configured specifically to provide Guidry lauds KONGSBERG’s service and support team, 100 meter launching slipway. The hull will be built at anoth- facility,” says Rolim. larger carrying capacity for deepwater projects. They were saying that he and the shipyard frequently rely on er Brazilian shipyard (EISA), and outfitted at Aker Promar. The intercity entity set up to make the logistics zone hap- launched just in time for a downturn in the market, and for KONGSBERG’s expertise to work out interfacing problems, “To face this challenge, we decided to invest in a new pen is ambitious. Its glossy brochure is just the sheen on three years Harvey Gulf struggled to even when they aren’t directly related to facility at a new logistics zone being set up between Campos an attractive economic package put together by Brazil’s in- find the right employment for these “If there’s anyone I KONGSBERG’s systems. “The most impor- and Macaé. This zone, called ‘Barra do Furado’ is ideal be- vestment-minded government. They understand, like Aker vessels. Starting in 2004, however, tant thing for a DP-2 supply boat is the cause the land is adequate to accommodate a shipyard and Promar, that the money rushing in won’t last unless their the situation changed, the vessels are want on my side, it’s DP system. If there’s anyone I want on it is the closest available area to the offshore fields – 80 infrastructure and technology develop fast. n hugely successful and Harvey Gulf is my side, it’s the DP guys,” he says. building five more DP-2 supply ves- the DP guys” sels that incorporate a number of KONGSBERG MARITIME IN BRAZIL new features. Booming market With a fleet of 20+ new semi-submersible rigs heading for • Kongsberg Maritime has been present in Brazil since 1980 when Dynamic Positioning was introduced to the Brazilian Stick with what works deepwater operations in the Gulf of Mexico, Guidry and offshore industry. Activities increased and, in 1986, Kongsberg Maritime set up a Brazilian office with REM Industria e “Every time we discuss new vessels, I talk to my captains. Harvey Gulf have great faith in the future of the OSV mar- Comercio Ltda (REM). What can we do better on these newbuildings? These of- ket. To ensure the strong commercial performance of his • the service organization including our Rio de Janeiro and Macaé offices now includes a total of 11 service engineers ficers have worked with all kinds of DP systems, and they vessels, Guidry is focusing on adaptable tonnage capable of and technicians specialized in our different products, providing service installation and commissioning of our always say: Stay with the KONGSBERG system. The last thing multiple tasks. equipment. they want to happen is to drive-off, hit a rig and lose their He told Marine News magazine recently: “Besides the ‘de- • Kongsberg Maritime set up a training center in Macaé in 2001 with the full training course program provided by license,” says Guidry. livery truck’ aura assigned to OSVs, there’s plenty of other Kongsberg Maritime. This center has now trained more than 500 students. Harvey Gulf’s entire newbuilding programme is being built things they do well, too. They can make great dive boats, or • today there are approximately 120 vessels in the Brazilian waters with systems from KONGSBERG, including 80 at Eastern Shipbuilding in Panama City, Florida, and all of handle any other task requiring the stability of a 60 foot beam vessels with KONGSBERG DP systems. them will be DP-2 certified KONGSBERG systems. The Harvey and the utmost precision in manoeuvring and positioning.” n

24 25 THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE / Photo: ricardo balbi THEME Maximizing Drilling Performance Article by THE FULL PICTURE MAGAZINE / Photo: ricardo baThelbi F U LL PICTURE magazine 01/06

Left to right: Alfredo Naslausky, Managing Director, CBO; Bjørn Johan Trosthoel, Vice President, Norway and South America, Sales and Marketing Division, Kongsberg Maritime; Fernando Duarte Marques, Senior Offshore Coordinator, REM; Gunvor Hatling Midtbø, Vice President, Communications, Kongsberg Maritime; Tony Andre Håvelsrud, Sales Manager, Kongsberg Maritime

Brazil’s domestic offshore capacity and that meant work- ing more closely with emerging regional offshore operators – including CBO. Indeed, Petrobras allowed CBO two years to develop, build and deliver the company’s first new- building (the UT755 CBO Campos) in cooperation with the Norwegian-based ship design company, Ulstein. “As one of the first vessels ordered and built in Brazil, it was an important milestone not only for CBO, but the Brazilian offshore industry,” says Naslausky. “For the first At home in Brazil time, a Brazilian company was able to compete with foreign- owned PSV operators.” CBO has continued to grow with the industry. As NorSkan Managing Director Established in Rio de Janeiro as a joint-venture by two off- Petrobras began drilling in deeper water, CBO delivered Hans Ellingsen the first DP equipped vessel and began building larger and shore supply vessel operators with experience in the North Sea, more sophisticated vessels at the Brazilian shipyard, Promar, Domestic pioneer which was later purchased by Aker Yards. Today, the com- NorSkan’s past is all Norwegian. A closer look reveals a pany has a controlling interest in the Rio-based shipyard, Alianca, where they build all their ships. company that has embraced its new host country: Brazil. When Brazil’s offshore industry began in the While Naslausky acknowledges that CBO (like other Brazilian offshore services companies) has benefitted from Founded in 2000, NorSkan’s origins are similar to many focused on more deep water projects and floating production 1970s, the country imported most of its techni- the introduction of Brazilian maritime laws regarding inter- other international companies seeking to serve Brazil’s grow- units. Estimated at USD 400 million annually, the Brazilian national companies operating in Brazilian waters, he notes ing offshore industry. To comply with Brazil’s tough mari- market for maritime support vessels is served by about 25 cal expertise, equipment and offshore supply that the rapid growth of the industry has created opportuni- time regulations, which favour operators that use Brazilian companies which together charter about 140 vessels to the ties for everyone. “Previously, we competed mostly with built, owned and flagged tonnage, NorSkan was set up as a state-owned Brazilian energy company, Petrobras. Today, capacity. But led by companies like offshore operators based overseas,” says Naslausky. “Now we are Brazilian company, financed by two venerable Norwegian NorSkan has contracts valued at USD 230 million, represent- also competing with many companies based in Brazil.” offshore supply vessel operators, Solstad Offshore and DOF. ing a significant market share in a highly competitive region. supply vessel operator CBO, Brazil is rapidly be- After winning a contract to build a small supply vessel for Bright future the state-owned energy company Petrobras, the company A little help from home coming self-sufficient. Today, CBO continues to grow to meet the demands of was soon in business. While NorSkan is a truly Brazilian company, Ellingsen still Brazil’s rapidly expanding offshore market. With a fleet of relies on Norwegian offshore expertise. In addition to build- The growth of CBO (Companhia Brasileira de Offshore), es- 13 PSVs and four more under construction, CBO employs Integrating with the local market ing vessels at the Norwegian owned shipyard Aker Promar, tablished in 1978, mirrors the development of the Brazilian about 350 people including 300 seafarers, which Naslausky Unlike many of its internatinal competitors, NorSkan has NorSkan vessels are coated by Jotun Paints, and 60 percent offshore industry, which began in the early 1970s. At the describes as “one big family.” In addition to building larger been quick to embrace its new home. Of the company’s 210 of all equipment onboard comes from Norwegian companies. time, the state-owned energy company Petrobras owned its ships such as anchor-handling vessels, CBO is also evaluat- employees, only two are Norwegian – including Managing Indeed, all NorSkan vessels are equipped with KONGSBERG own fleet, including 13 offshore supply ships built in Brazil. ing the ROV support vessel market. Director Hans Ellingsen, who helped set up the company. systems and the company relies on KONGSBERG service and But when the company decided to sell their entire fleet, the Naslausky says that for sub-suppliers to be successful, Ellingsen himself lives in Rio with his Brazilian wife and two support technicians and locally based training centres to en- newly-formed CBO was first in line, acquiring three shallow- they must have a local presence. “By working closely with children, speaks Portuguese fluently, understands the busi- sure their vessels and crew operate at maximum efficiency. water vessels. leading sub-suppliers, especially those like KONGSBERG ness culture and recently was nominated to become a citizen With an active newbuilding programme, NorSkan’s ambi- which understand the local market, we can deliver a broad of Rio, a rare honour for foreign-born nationals. tion to be the best offshore supply services company in the A close cooperation range of quality platform support services,” he says. “Brazil Now wholly-owned by DOF, NorSkan has invested US 160 Southern Atlantic will require that the company step up its According to CBO’s Managing Director, Alfredo Naslausky, attracts the industry’s leading global companies, and million in an ambitious newbuilding programme, which will efforts to recruit, train and develop skilled seafarers. And most offshore vessels operating in the region were operated KONGSBERG is one of the best in the world.” add anchor handling tugs, ROVs and construction vessels with plans to build on its experience in Brazil to offer servic- by foreign companies. “We were among the first Brazilian However the Brazilian offshore industry develops in future, now under construction at the Aker Promar shipyard (also es to the Gulf of Mexico and Angola, the company expects companies to enter this market.” Naslausky explains that one thing seems certain: CBO will continue to play a leader- in Rio). NorSkan’s increasingly sophisticated fleet matches to double the number of crewmembers over the next few as a state-owned company, Petrobras was eager to develop ship role in Brazil’s growing offshore services market. n the rapidly expanding Brazilian offshore industry, which is years. n

26 27 THEME Maximizing Drilling Performance Article by RUNE KVERNBERG / Photo: KOngsberg The FULL PICTURE magazine 01/07

...... One step closer ...... to Integrated Operations ...... Finding the balance between generating new resources and managing operational ...... costs can be a challenge for companies in the oil & gas industry. But KONGSBERG is ...... working to develop systems to enable the next generation efficiency improvement: ...... Integrated Operations......

A significant challenge facing companies in the oil & gas optimization of field production, operations and mainte- available at KONGSBERG meet or exceed the requirements A digital future industry is to harmonise the need for generating enough nance - together with logistics and purchasing systems. necessary to implement viable Integrated Operations solu- KONGSBERG’s objective to realising Integrated Operations is new resources relative to production while keeping unit Integrated Operations will allow companies to take a more tions. to link existing remote monitoring and control technologies costs for field development and operations as low as possi- active part in optimising projects in collaboration with field to work processes which facilitate fully-integrated teams, ble. To manage this complex issue, the industry spends a lot operators and vendors by using information & communica- To ensure these systems work together, KONGSBERG will be operating in digitalised work environments. Unlike the of time and effort to implement next generation efficiency tion technology (ICT) and real time (RT) information to a utilising existing products and services as a departure point traditional client-vendor relationship which exists today, improvement initiatives, known as “smart field”, “e-field”, much greater extent than before. in our drive to develop the appropriate technologies and ap- Integrated Operations brings field operators and vendors to- “field of the future” or simply, “Integrated Operations”. For many years, KONGSBERG has been a significant con- plications which enable Integrated Operations: gether in new and exciting ways. For example, KONGSBERG KONGSBERG is actively participating in the development of tributor to efficiency improvement initiatives by continu- • Process control systems is developing dedicated control centres and virtually distrib- these initiatives, offering a broad range of products and ser- ously developing new technologies and applications for the • Safety systems uted organisations. This process represents a significant step vices based on its diversified and proven business platform. oil & gas industry. The company has focused on process au- • Process simulation, modelling and analyses toward towards full digitalisation of the oil & gas industry. tomation, control and monitoring, dynamic process model- • Flow assurance for multiphase flowlines and pipelines For now, the drilling segment has been a front-runner Significant cost savings ling and simulation with fixed and floating topside systems, • Sensors and condition monitoring applications in adapting the concept of Integrated Operations, but the In the last two decades, the oil & gas industry has gone subsea systems, safety systems, multiphase flowlines/pipe- • Information management systems (IMS) production segment is not far behind. In the meantime, through two distinct generations of efficiency improve- lines and onshore terminals. These areas represent the • Control rooms and collaborative work environments KONGSBERG is committed to Integrated Operations for ment which have been enabled by the development of new full production chain, from well bore and subsea systems • Historic and real time visualization of operations data all main phases of oil & gas exploration and exploitation technologies related to seismics, reservoir interpretation, through process plants to onshore terminals -- including • Operations support incl. remote support (incl. 24/7) through its Integrated Operations product and service of- advanced well design and the introduction of more sophis- LNG and petrochemicals. To optimise the development of fering. ticated floating production units. Integrated Operations these initiatives, KONGSBERG works in close cooperation In addition, KONGSBERG employs open system architecture represents the third generation of efficiency improvement. with other vendors and field operators through integrated and uses standard protocols for data communication to Integrated Operations – It is your future! n Unlike the technical developments which drove previous teams and dedicated partnerships. allow KONGSBERG systems to seamlessly interact with third- generations, this third generation focuses on information party vendors or related products and services. technology, work processes and integrated team collabora- Building capacity tion to make vast improvements in both operational effi- KONGSBERG remains committed to helping develop this third ciency and HSE performance. By some estimates, companies generation efficiency improvement technology. Recently, FACT operating on the Norwegian Continental Shelf can expect the company has launched several new initiatives to help to Integrated Operations to yield a potential value in excess of expand KONGSBERG’s business capabilities, both organically Setting goals for Integrated Operations 40 billion USD for the period 2005 – 2015. and by acquisition. In 2006, KONGSBERG acquired Fantoft Kongsberg Maritime’s primary target is to succeed with Integrated Operations through alignment of the best tech- Process Technologies (main products: dynamic process mod- nologies and work processes. Key drivers to ensuring a viable Integrated Operations include the following: Defining Integrated Operations elling and simulators) and Sense Intellifield (main products: • Utilize and optimize existing tools and applications. Precisely how this third generation efficiency improvement information management, visualization and collaborative • Develop and apply new technologies and solutions. will change the industry is difficult to predict, but if indus- work environment solutions). Both companies are now fully • Seek new ways to combine technologies and solutions through system integration and collaborative work try analysts are correct, the industry will be transformed integrated into the KONGSBERG value-chain. environments. in many respects. Integrated Operations will enable a con- KONGSBERG is confident that these acquisitions are vital • Make real-time and historical data accessible through networks, visualization and cross discipline collaboration. tinuous increase in field recovery, reduction of operational to making the Integrated Operations concept a reality. • Train and develop people to operate new technology efficiently. expenses, improved HSE performance, true life-cycle-based Indeed, the range of technologies and applications now • Utilize experience gained to always adapt to changing challenges and opportunities.

28 29 ...... The FULL PICTURE magazine 01/07 THEME Maximizing Drilling Performance Article by sam hemeda / Photo: ryan skinner ...... TRAINING ...... For more information about KONGSBERG’s courses, see www.km.kongsberg.com ......

Jan Brouwer, Sinisa Gucul, Canyon Express Damir Marinac, Sinisa Milnersic, Ruud v Sluijs and Wieger vd Brink of Allseas Marine Services KONGSBERG delivers a unique pipeline management tool with impressive results in deepwater Gulf of Mexico (GoM). Jan Eckhoff (back, with glassses) and his team at Kongsberg Process Simulation in Houston, Texas

During mid to late life of fields with complex subsea pipeline operations throughout the process, from the subsea wells systems, as the wells begin to deplete, lower gas volumes in to gas sales. Functionalities include: detection of water the flow line combined with an increase in water production break-through in subsea wells, detection of scale buildup, can lead to large volumes of liquid holdup. The combination monitoring of hydrate margins, methanol injection optimiza- of increased liquid in the flow lines along with a decrease in tion, liquid holdup monitoring, dynamic flow metering for reservoir pressures can potentially lead to smaller volumes flow allocation, detection of blockage in the flow line, early of obtainable reserves from the wells. This can lead to major detection of equipment failure and more. operational challenges and a drop in profitability. The planning simulator is used for detailed diagnosis of Operating companies seek a real-time production monitor- problems, analyzing “what if” scenarios, developing operat- ing, management and optimization tool to better manage ing procedures and planning critical operations. It is basically production in tough and challenging environments, espe- an off-line version of the real-time simulator, better enabling cially for subsea tie-backs in deep and ultradeep waters. engineering studies and operator training. It allows greater Team training…on skis! The USA division of KONGSBERG Process Simulation was study into how states in the process, such as pressures, flows contracted by Total to provide such a tool for their Canyon and hold-up, will vary as a result of user actions. Taking part in a course at Kongsberg Maritime isn’t only Express system in GoM, which – to our knowledge – is the PMS was effectively used to better manage the Canyon Kongsberg Maritime ran a about system comprehension, PC use, technical solutions first of its kind in the deepwater part of this area. Express fields during mid- to late-life operations through: and hard facts. Getting to know each other better and es- • Well performance monitoring: Monitor influence of one successful training course for tablishing a positive atmosphere in the classroom is an im- Background well on another portant area for course participants. The Canyon Express Pipeline System produces three gas • Production rate optimisation: Monitor influence of Allseas Marine Services that “It is quite important that all of the course attendees dare fields in the deep (6200-7200 feet) Mississippi Canyon under reduced arrival pressures and back pressures to maximise to ask what they consider stupid questions,” says instructor different operating regimes and varying production rates production. integrated winter sports. It turns Tove Brevik. “There are no dumb questions, just dumb an- from multiple zone completions. The Canyon Express trans- • Early identification of slugging and avoidance of top-side swers. portation system consists of two 12-inch flow lines running shutdowns out a little skiing improves “We believe that by meeting outside the classroom cre- parallel from Camden Hills through Aconcagua and Kings • Planning start-up procedures after shut-downs in order to ates a space where participants feel secure to ask all their Peak to the Canyon Station Platform located approximately get the facility up and running more optimally. classroom performance and questions. We want classes to be small so that we can take forty miles north of the northernmost Kings Peak well. • Methanol injection optimization n care of each person – and we want to be able to laugh KONGSBERG’s Pipeline Management System (PMS) is a team-building. together, to soften up the learning situation. We often self-learning dynamic model. The topsides process simula- invite course participants to a meal, but we also want to ...... TM ...... tor, D-SPICE , was integrated with the multi-phase pipeline ...... demonstrate what KONGSBERG has to offer. What’s more ...... CONCLUSIONS ...... simulator to develop the PMS. A stable interface allows ...... Norwegian than winter and snow?” laughs Brevik...... high-fidelity simulations for subsea pipelines together with ...... PMS was a major contributor in extending the field life by This winter, a group from Allseas Marine Services par- ...... topsides facilities...... more than a year and in increasing the ultimate reserve ticipated in an SVC technical course. Kongsberg Maritime’s ...... The PMS consists of a real-time and a planning simulator...... recovery. The cost of the system was paid off within a few instructors Brevik and Vegard Popperud invited the crews ...... The real-time simulator has a live read-only satellite (micro- ...... days of the implementation of the system in December from the Netherlands and Croatia up on KONGSBERG’s ski ...... wave) link from the platform Master Control System (MCS) ...... 2005. Unlike the PMS for Canyon Express, which was imple- slopes. In the falling snow, participants were able to try al- ...... via OPC (OLE for Process Control) to get all the available ...... mented during the mid to late life of the field, such tools pine skiing...... measurements. Current real-time condition of the PMS can ...... should be planned in the design phase and implemented Jan Brouwer was among those who heroically took the ...... be transferred to the planning simulator for off-line plan- ...... from the start of production. Currently, KONGSBERG ...... is challenge. No hill was too large or too steep for this rookie...... ning simulations. Look-ahead scenarios can be run on the ...... executing similar projects within the Americas region for After a half hour’s instruction from Brevik, Brouwer was ...... real-time simulator which displays trends of possible future ...... other clients. ready for the big hill. He got down in a hurry, with some ...... process problems...... PMS will be featured in a technical session during OTC new lumps. Watch out for the Dutch downhill ski team in a ...... ‘07 (Flow Assurance session, Wednesday May 2nd in the few years! Just check out the pictures! n ...... The simulator ...... afternoon)...... The real-time and look-ahead modes are used to monitor ......

30 31 ...... The FULL PICTURE magazine 01/07 ...... THEME Maximizing Drilling Performance ...... TRAINING & COURSES Article by the full picture / øPhoto: bj rn-owe holmberg ......

The first class (pictured here) was held 26-28 April 2007 at the KONGSBERG Training Center in Houston. By day three, the DPOs were calmly handling complex failure modes, challenging the instructors to come up with more difficult failures, and experimenting with new ideas how to spot and miti- gate similar problems on their rigs.

From left to right: the DPLL rollout in 2005, Transocean made continuous en- fications, Kongsberg Maritime developed the advanced Torfinn Kildal, President and CEO, hancements to the DPLL course based on student feedback simulator proposal. Kongsberg Maritime and the knowledge quizzes. Today, approximately half of The aim was for DP operators to leave the course with an Jørn Mastervik, Vice President - Transocean’s DP operators have attended a DP Lessons improved and proven understanding of complex integrated Global Support, Kongsberg Maritime Learned Course, and human error has been reduced by an automation systems and the equipment controlled by these Lew Weingarth, DP Superintendent, estimated 80% in some areas. systems, as well as improved ability to determine the cor- Transocean rect response to a failure. The DP operator will be expected Ole Gunnar Hvamb, Executive Vice Developing the ideal simulation to utilise the knowledge learned in the course to refine un- President - Offshore & Marine, After several years of teaching the classroom based DPLL derstanding of the vessel’s systems. Kongsberg Maritime course, Transocean realized that further gains would require the addition of hands-on simulation of complex failure Levels of understanding events, which can only be partially understood from a class- This class will likely include a review of concepts and case room discussion. The method selected to achieve further studies, computer- or web-based preparatory training, simu- improvement was based on proven success in another area lator work and assessment and review of individual DPO of Transocean’s core business: Well Control. Well Control performance. Several case studies will illustrate situations, training teaches drillers to recognize and control a remote and success will be determined by how the situation is as- Developing Advanced Training for DPOs complex event (influx of unknown wellbore fluids thou- sessed. The goal will not be hitting the correct buttons, but sands of meters below the drill floor) from a few, often mis- how the operator assessed the situation and determined a leading local indicators (pressure, flow, volume), with the response. The simulator is designed to allow situations to be Having identified an opportunity to improve the capability of Dynamic focus on understanding the event rather than memorizing replayed for classroom review, or restarted from any point. which button to press. Similarly, DPOs must be able to rec- This allows operators to test various responses and ensure Positioning Operators (DPOs), Transocean Inc. set about developing the ultimate ognize problems developing remote to the DP control room the operator leaves the course with the optimal level of un- from a few indicators (amps, volts, kW). derstanding. DPO training course. Transocean first investigated existing simulators, but All Transocean’s DP operators will be required to pass this none could recreate the type of complex faults and failures course periodically. The course may also be used to mea- One of Transocean’s corporate core values is Technical operate the Dynamic Positioning system, but did not teach that cause most DP Events. In 2005 – 2006, Transocean had sure the knowledge of new employees. Other drillers and Leadership, which Transocean defines as “our competitive them to handle faults and failures external to DP, which meetings with Kongsberg Maritime personnel in Horten, industries are planning to follow Transocean’s lead, with advantage based on continually improving our processes [finding] was consistent with the human error findings. Norway and Houston, USA. Together, they refined the con- the International Marine Contractors Associations (IMCA) and finding innovative solutions to the technical challenges Transocean is dedicated to improving DP vessel reliability cept of an Advanced DP & Power Plant Trainer/Simulator already onboard. n in meeting the needs of our customers”. In pursuit of this by technical advancement and performance improvement. for enhanced operator training. Based on Transocean speci- core value, Transocean decided to take on the challenge Analysis of historical DP industry performance identified of improving the performance of DP Operators and DP opportunities to improve DP vessel reliability and perfor- ABOUT TRANSOCEAN Operations. To determine the best path for improvement, mance, including improved power plant robustness and Transocean decided to audit all DP operations in the fleet availability, blackout recovery, and dynamic positioning KONGSBERG customer, Transocean Inc. is the world’s largest offshore drilling company with 82 mobile offshore and review existing industry DP Incident databases. operator understanding of power plant failure modes and drilling units. Transocean is also the largest ‘floating’ rig driller with 54 semi submersibles and drillships, as well as This audit revealed that most DP incidents were caused management controls. the largest deepwater driller with 28 rigs that can drill in more than 4,500 feet of water. by problems external to the DP system, with power plants A DP Lessons Learned course was developed to improve A truly international offshore driller with more than 12,500 employees, Transocean is incorporated in the the largest single contributor. Human error was also a sec- DP Operator skills and knowledge, with a particular focus Cayman Islands, and has rigs in Africa, Asia, Australia, Brazil, Canada, India, Norway, the Mediterranean, the ondary factor in most DP incidents, with escalation of a on the most common historical causes of DP Incidents. Middle East and the UK. DP incident due to DPO inaction or incorrect action much Transocean made the DP Lessons Learned classes manda- The depth of the knowledge at Transocean encompasses more than 50 years’ drilling offshore experience and more common than a DPO mistake causing a DP incident. tory for all DP operators. Knowledge quizzes are given to more than 200 rig-years operating dynamic positioning (DP) drilling rigs. This expertise has led to the company Further investigation showed that the Nautical Institute DP every student before and after the course, and classroom securing multi-year contracts for its rig construction and conversion. The demand for Transocean rigs outpaces Certificated Training did a good job of teaching the DPO to participation is a key factor in the learning process. Since supply, especially in the deepwater market.

32 33 ...... The FULL PICTURE magazine 01/06 ...... TRAINING & COURSES ......

Tove Brevik, Instructor, Kongsberg Maritime, teaching a Odd Magne Skei, NTC, and Anne Toril Kasin, Kongsberg Typical training cenario course. Maritime for AutoChief C20 propulsion control system

New and better training Classrooms – coming to you! High training activity Now Training in Manila centres You need to keep your opera- Kongsberg Maritime’s training Kongsberg Maritime has Kongsberg Maritime is tors trained and prepared. Now centres all over the world are teamed up with the Norwegian investing heavily in the size you can send them to us, or let as popular as ever, and more Training Center in Manila, the and quality of its training us bring the classroom to you! and more classes are scheduled Philippines to offer courses to

centres all over the world. Last year, KONGSBERG developed an easier way to meet close to customers. Filipino seafarers. and train its customers wherever they are in the world. KONGSBERG has begun a comprehensive effort to improve The result, called the “Portable Classroom”, demonstrates There is currently tremendous activity in product train- By Autumn 2007, Kongsberg Maritime will launch training its training centres worldwide. In Singapore, Houston and Kongsberg Maritime’s commitment to providing first-class ing at all of Kongsberg Maritime’s training centres. Both in programmes on a number of its systems and products at the Busan, centres are moving to new locations or occupying training solutions. It is intended for use at customer sites, connection with new deliveries and operation of older ves- Norwegian Training Center in Manila (NTC-M). The new newly constructed sites. The training centres and classrooms Kongsberg Maritime offices and onboard vessels. sels and rigs, it looks as if the need for skills, well-trained offer is a result of demand from seafarers and customers will be lifted up to an even higher standard than they are “We’ve now gained considerable experience with this seafarers and knowledge of Kongsberg Maritime’s product and KONGSBERG’s own effort to get closer to key training today. travelling system,” says Kongsberg Maritime’s Project solutions is greater than it has ever been. markets. At Horten, Norway, the existing training centre is moving Leader and developer Ingar Tveiten. “We have run courses “At first, the courses will be set up so that participants into its own dedicated wing, with improved solutions con- with customers in Greece, on vessels in Spain and Trinidad, Classes where you are won’t need to travel to Norway in order to follow a train- cerning both the equipment and the classrooms. and at a number of Norwegian locations. Our feedback has “We take this very seriously,” says Anne Toril Kasin, ing programme,” says Anne Toril Kasin, Product Training “We’re really looking forward to this,” says Rita Krathe, a so far been very positive. Product Training Manager at Kongsberg Maritime. “We’re Manager at Kongsberg Maritime. “Our training is primarily training and market coordinator with Kongsberg Maritime. “We see areas for improvement, so as we construct new expanding our offer by meeting users where they are locat- connected with deliveries onboard vessels, which is con- “Now we are getting offices that are much more suited to portable classrooms we will standardise and simplify them. ed. We are well underway with classes at our new training ducted by our own instructors. The centre will host these our needs. More classrooms and better break-rooms are The most important thing for us now is to be more flexible centre in Dubai, and at our centre in Brazil there are weekly courses. We have had many shipowners request a local among the reasons we believe that users will appreciate the about reaching the customer where they want us. It’s easier classes. Classrooms are full in Norway, Singapore and Korea presence in the Philippines, so we can’t wait to get started.” changes. We will be moving into these new offices by early to ship an instructor and a portable classroom to the cus- pretty much all the time.” The portable classrooms described The Managing Director at NTC-M, Odd Magne Skei, looks summer, so this is just around the corner. With an expanded tomer, than move an entire class to us,” he says. in another article are also designed to meet customers’ de- forward to increased co-operation. “We are completing a staff of instructors within the product area ‘Automation mands for on-site training. new simulator centre with considerable equipment from System and Propulsion Control System’, we are ready to Facts about the training box: Kongsberg Maritime. With this agreement, we will be one of meet more of the challenges in this area as well.” The training box is at the core of the portable classroom Reserve early the best equipped training centres in the world,” he says. concept. This easy-to-transport box is equipped with a “It’s great with high activity, but it forces us to advise single remote control system (RCU) and the most common customers to contact us early regarding planned courses. Norwegian Training Center – Manila: remote input/output (RIO) modules, which are interchange- We are pretty much fully booked eight to ten weeks ahead Safety & Quality Focus able, depending on the type of equipment on the vessel. of time, all the time, even though we have hired more The Norwegian Training Center – Manila (NTC-M) was es- Additionally, ten fully loaded laptop PCs are included. instructors. There are about 25 full-time instructors on tablished by the Norwegian Shipowners’ Association (NSA) These are operator stations during training. Kongsberg Maritime’s product range. It’s a good idea to be in order to provide relevant upgrading training for Filipino The box offers access to all of the technical equipment early reserving course times,” says Kasin. seafarers serving on the ships of its members. NTC-M came and software required to arrange hands-on training for She concludes: “At Kongsberg Maritime training centres, into operation in February 1990. At the time, some 25,000 Kongsberg Maritime customers worldwide. students gain knowledge and skills to improve performance, Filipino seafarers were serving on Norwegian-owned or which will better utilise the overall investment.” controlled ships. For more information: [email protected]

34 35 ...... The...... FULL PICTURE magazine 01/07 ...... THEME Maximizing Drilling Performance ...... The...... FULL PICTURE magazine 01/07 ...... KONGSBERG support 24 ...... Getting to customers first Norway scotland

british columbia (canada) newfoundland (canada) Kongsberg Maritime’s customer service and support office near New Orleans has england germany Washington (usa) nova scotia (canada) the netherlands connecticut (usa) gained responsibility for support throughout North and Central America. A big task italy south Korea texas (usa)

just got bigger. Louisiana (USA) china

Singapore Kongsberg Maritime first set up its New Orleans office in of their time on the road, and ensures that they are where 2003 to get closer to its customers operating in the Gulf they need to be as quickly as possible. Brazil of Mexico. The office’s first manager said: “The customers Sam Weatherall is one of these technicians. “If a customer were clear. We had to move from Houston closer to their has a problem, they may call a number of vendors for sup- operations. Most of them are a short distance from us here port. Because of our location,” he says, “we can often be the in New Orleans.” first support person on the spot. Customers like that.” The office has grown steadily and rapidly. Its current staff Because it supports the full picture of Kongsberg of 20+ include software and hardware engineers, DP techni- Maritime products, this office must strike a balance between cians and service coordinators, as well as the administration breadth and depth. Says Nils Even Urkedal, Customer and invoicing personnel that back them up. Specialists from Support Manager: “We need to satisfy our customers, no Global support Norway frequently rotate into the New Orleans office, sup- matter where they are experiencing problems. That means World-wide main contact Regional Support Centres 24h plementing local expertise. By year’s end, the office aims to we need people skillful in the full range of our products. We Call +47 815 35 355 Europe, Africa & Middle East North America (Louisiana) South America (Brazil) Far East & Oceania (Singapore) Kongsberg Maritime Inc. Kongsberg Maritime do Brazil Kongsberg Maritime Pte. Ltd. number almost 30. can consult with colleagues in Norway or elsewhere, but [email protected] (Norway) Kongsberg Maritime AS 24h Hotline: +1 504 234 3934 c/o REM Indústria e Comércio Ltda 24h Hotline: +65 9862 2881 there’s no substitute for expertise on site.” 24h Hotline: +47 815 35 355 [email protected] 24h Hotline: +55 21 9965 5170 [email protected] Fast, effective all-rounders [email protected] [email protected] As Kongsberg Maritime’s support center for North America, Gulf of Mexico this office is on call for any customer making a port call in As many as five dozen new drilling rigs are on their way ...... Nils Even Urkedal, North America. Traci Percle, the office manager, and her ad- to the Gulf of Mexico. Many of them will have Kongsberg ...... Customer Support Manager, ministrative staff efficiently provide support to the service Maritime systems. These will be served by a growing fleet ...... Kongsberg Maritime, Inc., personnel, who may spend as much as 50 to 70 per cent of DP support vessels. Many of these, too, will have prod- ...... New Orleans, USA ucts from KONGSBERG...... “The number of service jobs has increased dramatically ...... over the past two years. We expect the activity level to ...... Expo keep increasing in the coming year or two. During this ...... building boom, much of our work is with commissioning,” ...... says Urkedal. Service jobs range from readjusting DP thruster control after work on a vessel’s thrusters or engines to correct- Nor-Shipping Monaco Yacht Show ShipRepair Workboat show ing a failure caused by one of the Gulf’s frequent summer www.nor-shipping.com www.monacoyachtshow.org www.shiprepairex.com www.workboatshow.com June 12 – 15 Sept. 19 – 22 Oct. 10 – 11 Nov. 28 – 30 lightning storms. Well-trained DP users can drive down the frequency and cost of service, however, and Kongsberg MIOGE Neva Kormarine Maritime’s DP training courses have shown real results in www.mioge.com www.setcorp.ru www.kormarine.net this respect. June 26 – 29 Sept. 24 – 27 Oct. 24 – 27 “We aim to deliver quality and keep our customers Baltexpo KIOGE Europort happy. We’re doing a good job, and we’re expanding our www.baltexpo.com.pl www.kioge.kz www.europortmaritime.nl team so we can continue to give good service and support Sept. 4 – 6 Oct. 2 – 5 Nov. 6 – 9 in the future,” concludes Urkedal. n Offshore Europe DP Conference Marintec China www.offshore-europe.co.uk www.dynamic-positioning.com www.marintecchina.com Sept. 4 – 7 Oct. 9 – 10 Nov. 27 – 30

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