Corporate Solutions WGP 107 (18) Offshore Oil and Gas platforms Eric Brault - Energy Practice Leader PROTECT PREVENT SERVE RESOLVE PARTNER OFFSHORE OIL& GAS PLATFORMS IMIA WGP 107 (18) Part icipant s: Eric Brault – AXA Coporate Solutions - Chairman Ma r t in Ka u t h - Partner Re Mark Mackay - AXA Corporate Solutions Al a i n Padet - AXA Corporate Solutions Mik e McMahon - Charles Taylor Consultant Mohamed F. El-Ai l a h - Qatar General Ins Javier Rodriguez Gomez - Reinsurance Consultancy Mexico Roman Emelyanov - SOGAZ Insurance Group Thomas Friedrich – Munich Re Eve Ong - Helvetia Stephan Lämmle – Munich Re – Sponsor 2 PROTECT PREVENT SERVE RESOLVE PARTNER Technical description of Offshore Plat forms Construction process and components Information needed and Underwriting Consideration Pure Insurance Aspect s MPL Considerat ions and Accumulation driving system Ex am p l e of Loss Recommendat ions Conclusion 3 Executive summary The development of an oil field is a broad complex subject, which needs strong analysis. The Presentation is a overhaul view of the risks assessment, concerning the construction of the offshore platforms. We do not focused on specific subjects such as: Covers of the drilling of wells , risk inherent to the research for new oilfield, operation of the platforms, processes for NG and oil, pressurizing, storage, market absorption and dismantling ... We pay attention on the risks to anticipate and balance the construction phase, weather and sea condition impact, importance of the design, the safety systems, details on the MPL scenarios during the construction, putting in place of the platform and starting of operation phase. The MWS role and his importance is also described. We also described an example of claim, which is a “typical common incident” which may happen during construction period, and give some recommendations to handle the underwriting of cover of the erection and testing.. Technical description1 of Offshore Platforms Technical description General matters and history • An Oil & Gas Offshore Platform is a structure which allow one of the following functions: The extraction, the field treatment, the storage, the transfer, the usual functions to which allow people working safety, in a far away isolated sea environment. • The first real platform was the Ke r m a c 16 for the first offshore well drilled unit in 1947. • The offshore Oil & Gas production is representing 1/3 of the worldwide production • The units are of different type of design and of construction methods according to: • Their functions and type of field • The weather and sea environment • The expected life and operation time (size of the field) Technical description General matters and history • 3 main types of units are summarizing the functions definition: • Th e MODU: Module Offshore Drilling Unit • The PP: Production Platform, (well heads and process modules) • Th e LQ: Living quarters • MODU: used for drilling and close with caps the preformed wells waiting for the PP arrival • The PP :Are used to re-open the wells which are dedicated to it and operate during time life with necessary process. • The LQ: Includes all facilities for the human being with safety systems. • The development of field structure includes: • Offshore structures, with platforms • Systems to carry out the oil or NG, time to time storage (can be pipes or vessels) • Onshore facilities for oil and NG treatment and market to absorb production Technical description Different Types of design - Different uses - Different environments • 8 types of units are commonly used. The choice is defining according to environmental condition of field • According to the field location and perspectives of operation/production, designers are proposing fixed units or floating systems • Fixed units up to 1000m depth, (1,2, 3, 4) • > 300m floating units are used (5, 6, 7, 8) • Field production is really known at drilling results • Financing of projects needs heavy commitments from companies, with sharing of units. Technical description Field Project Definition What is a field development project? • A Project is defining with different phases: Getting authorization for research in the boundaries limits of an area Research, with Seismic Radiography of the area (on site several months), and analysis of results, several years (up to 4 years) Decision to go ahead! Starting of project with: Fitting of platforms (MODU first) and starting of construction of Production platform, transportation, positioning, developing of project with piping, risers, connections of drilled wells, opening of caps on wells bored by MODU, positioning of other platforms …globally up to 4 to 6 years duration, and huge contracts for local firms Operation ==> during 20 years and more Stopping and decommissioning of the units Technical description Field Project Definition Project time schedule MODU Dr i l l i ng Sub sea Infrastructures Pl at forms Construction Export syst ems fitting Onshore syst ems const ruct ion Technical description Field Project Definition Curves of production • Questions for UW: • What is the “PROJECT”? • What is included in TSI? • What is the duration of Cover? • What are we covering? • Where is the end of Construction? Construction Process2 and Components Construction process & Components Differentiate Field Level components, Platform Elements • Fields components: • MODU drilling and cap closing system, • Production platforms and LQ Platforms • Connection of wells, umbilicals and pipes • Evacuation systems fittings and pipes or others • Complementary treatment plant onshore • Construction Process of platform: • Shipyard construction and assembling of structures, • Foundations and mooring systems preparation • Towing and siting of platform • Evacuation systems connections • Caps opening and connection…… • Test and commissioning • Each field is different, with its own designed Items! Construction process & Components Platform components – The supporting structure The Structure itself which support the topsides is built on shipyards The Structure can be barged and with floaters located in field position . Construction process & Components Platform components – The Topside Functions and components: • MODU drilling : • Drilling systems • Production Platform • Processes systems • Flare • Well connection systems with valves • Crane • Living Quarters Platforms: • Living Quarters • Power generation and distribution system • Electrical Heating system • MEG bulk storage and distribution system • Subsea hydraulic power system MEG: Mono Ethylene Glycol, • Subsea controls interface Dehydration component to • Chemical systems anticipate freezing in offshore • Utilities, platform support systems and Infrastructure process. • Safety systems, etc • Other components For the FPSO the system is • Umbilical, Pipes to the storage adapted to, floating turning • evacuation systems unit with turret Construction process & Components Platform components – The Topside • The Oil or natural gas are containing impurities and unacceptable elements. • They shall be primary treated to allow it to be transported in good conditions. • Platforms are also containing necessary processes for treatment Construction process & Components Platform components – The Topside The topsides are built on shipyards with modules coming from different pre-erection sites The topsides towed with barge and positioned on structure with ballasting of barge The checking and commissioning will start, safety systems implementation first , and finally the first connections to wells will be ready to be established. Construction process & Components Platform components – The Topside • The Concrete fixed platforms are towed then ballasted at right location. • Different methods are used : All together or structure first then after topside are barged. Information needed and Underwriting Consideration3 Information needed and UW Consideration Information and details which are necessary for UW Well platform Production platform Live platform Production Platform Oil and NG Definition of the platform: • Technical description, including the process • Technical description of the boundary limits of the concerned project • Description of the construction method • Localization of the Construction facilities • Explanations on the travel and positioning systems, • Safety and prevention standards for fire and • Constructors, transportation, positioning firms references explosion Information needed and UW Consideration Risk Exposures for underwriting point of view Underwriter will be concerned by: 1. Policy wording scope (perils covered and extensions dedicated to sea risks), 2. Definition of the scope of equipment to cover (see previous possible variation) 3. External hazards, wells connection… 4. Natural hazards exposure, sea condition VS period of works at sea 5. Project inherent hazards with design details. 6. Concerned Processes 7. Construction methods 8. Transportation systems 9. Sea bed and environment 10. Foundations and anchorages 11. Equipment for construction, mobilization and demobilization Information needed and UW Consideration Risk Mitigation - How to balance the risk? Marine Warranty Surveyor Role* • The goal of the MWS is to make reasonable endeavour to insure that the risk associated with the warranted operations to which a MWS is appointed are reduced to an acceptable level in accordance with the best industry practice •The MWS company will only appoint personnel who are demonstrably competent in terms of qualification and