August 2010 ACTIVITIES In This Issue Deepwater Horizon Likely Regulatory Game Changer Page 2 Free Casualty Response Services for Newbuildings Page 6 Goal-based Ship Construction Standards Page 12 commentary Deepwater Horizon Likely Regulatory Game Changer Will the Role of Class within the Offshore Sector Change? he Deepwater investigations both the US Senate and House of Horizon was a continue and many Representatives once fi nalized and Tsemisubmersible questions remain enacted. drilling rig in the fl eet unanswered. of the world’s largest Within that new regulatory offshore drilling One element appearsrs environment, what will be the future contractor, Transocean. clear, however: the role of the classifi cation societies in It was classed by ABS offshore explorationn establishing safety criteria for the and on lease to BP in regulatory landscapee design, construction and periodic the Gulf of Mexico, will be forever survey of not only the drill rigs but completing the fi nal changed as a result also the drilling systems? And to cementing of the of this incident. what extent will the government successful well at the Already the agencies, particularly the US Coast Macondo Prospect government agency Guard and BOEMRE, look to the Field, 5,000 feet below Kenneth Richardson responsible for the classifi cation societies for assistance the surface and some safety oversight of in implementing the new regulatory 40 miles offshore offshore drilling requirements? These questions also Louisiana. and production, the US Departmentt remain unanswered at this time. of Interior’s Minerals Management On 20 April 2010, it experienced Service (MMS) has been reorganizedd As the leading offshore classifi ca- a well blowout that caused an into three separate divisions and tion society, ABS works closely with explosion on the rig and a fi re that renamed the Bureau of Ocean lawmakers, explaining the role of could not be extinguished. Two Energy Management, Regulation classifi cation and its mission to days later, the Deepwater Horizon and Enforcement (BOEMRE). It has promote the security of life, property sank, rupturing the riser from the released preliminary and immediatee and the natural environment primar- well and leaving oil gushing into requirements for the inspection of ily through the development and the waters of the Gulf. Eleven blowout preventers. More stringent verifi cation of standards or Rules for people aboard the unit were killed. regulation is expected to fl ow the design, construction and mainte- from the many bills put forward in nance of marine-related facilities. With time, as the well defi ed efforts to plug the fl ow of oil and gas, Mobile, AL the incident became the largest NASA’s Aqua satellite captured offshore oil spill in United States this image of the oil slick near the history. Inevitably, it has given rise coastline of the Gulf of Mexico. to several high profi le investigations into the causes. Within the industry, in the media and within the halls of the US Congress questions are being raised. New Orleans, LA What were the contributing causes? Was the industry prepared to deal with such a devastating scenario? Are regulations that govern offshore drilling suffi cient or do they need strengthening? How would the industry respond to a comparable incident in even deeper water, since the Deepwater Horizon was Oil Slick rated capable of working in water depths of up to 10,000 feet? Formal PAGE 2 ACTIVITIES • AUGUST 2010 commentary Crewmembers monitor the oil skimming set-up aboard a seagoing buoy tender. The tender is skimming oil near the oil spill site. Photo credit: US Coast Guard Given the current enhanced other marine structure has been conform with underwriting interest in classifi cation services designed and built in accordancee requirements; as an indication to the offshore industry, ABS Vice with one or more sets of Rules of due diligence or proper President of Energy Development developed by ABS. A marine maintenance on the part of the Kenneth Richardson is asked to structure which has been verifi edd shipowner; or to conform with explain some key concepts of as having been designed and builtilt statutory requirements. classifi cation, certifi cation and the in accordance with the applicablele reach of class responsibility from ABS Rules is eligible to receive a Q. What aspects of an offshore a unit’s structure to the various Certifi cate of Classifi cation. rig does classifi cation systems. review? Q. Why would someone seek Q. What does it mean to classifi cation? A. Classifi cation has provided ”class” a vessel? owners and operators in both A: ABS Rules are based on sound, the marine and offshore sectors A. Classifi cation societies establish fi rst principles of engineering with a process that works and apply technical standards and industry practice and, in harmony with fl ag and in relation to the design, as such, provide a baseline coastal State regulations, both construction and survey for demonstrating that key prescriptive and performance- of marine-related facilities, structural aspects and systems based. With respect to offshore including ships and offshore of the marine structure have exploration and production structures. ABS is a not-for- been designed and built in activity, classifi cation normally profi t classifi cation society accordance with such principles addresses hull, machinery and whose mission is to serve the and practices. Companies may stationkeeping. Additionally, public interest by promoting thee seek classifi cation because classifi cation can address security of life, property and the their fi nanciers or insurance industrial functions carried out natural environment. Through underwriters require verifi cationn on the unit, such as drilling and the review of plans and the that a vessel is designed, built hydrocarbon production but survey of construction processes,s, and maintained to appropriate these aspects are voluntary, to be ABS verifi es that a vessel or classifi cation standards; to selected by the owner/operator. ACTIVITIES • AUGUST 2010 PAGE 3 commentary have been carried out on the equipment have been adequately documented, evaluated against the applicable standard and approved. A key element of the foregoing process is the examination of the equipment, including, as far as reasonably practicable, a meaningful internal examina- tion. As with all classifi cation processes, we rely on the profes- Contracted workers from US sional judgment of our surveyors Environmental Services organized a to specify the necessary degree of boom for deployment at the Venice, examination, based on the condi- Louisiana staging area. Staging areas tion of the equipment as found at were placed in areas to quickly deploy the time of the inspection. assets and personnel to protect environmentally-sensitive areas. Q. What role does ABS see Photo credit: Marc Morrison for classifi cation societies in the future? A. We believe that a robust offshore A lot of offshore equipment is This is done to the standards safety regime must be based certifi ed rather than classed. contained in our published on clear, recognized technical There is a key difference requirements for drilling systems standards, an appropriate between the two. Certifi cation certifi cation (CDS) that have been engineering evaluation of the is the equivalent of a snapshot; developed with input from a design, including modifi cations, it only certifi es that the item variety of interests and take into against those standards, inspected meets the relevant account other widely recognized and in-fi eld inspection and standard at the time of the standards where appropriate. examination of the equipment, inspection. Classifi cation is a its components and materials life cycle approach that uses The certifi cation (and/or re- to verify compliance with the periodic and damage surveys certifi cation) process is based published and accepted standard. to verify that the unit and its on both a detailed engineering equipment are maintained in review of the design against ABS The process mirrors that which conformance with the relevant and other relevant published is used internationally for standards over the life of the standards, together with a the mobile offshore drilling unit. physical examination of the units themselves in terms of equipment and assessment of the their structure and principal Q. Does classifi cation cover materials used in its fabrication machinery and equipment. It is drilling systems on board to verify compliance with those also comparable to the approach a unit like the Deepwater standards. These engineering adopted by other nations. Horizon? Is a blowout and survey evaluations, when preventer (BOP) part of satisfactorily concluded, allow We are of the opinion that the these systems? How is ABS to confi rm, through leading classifi cation societies this type of equipment the issuance of the relevant have the experience, the reviewed? certifi cates, associated reports knowledge and a nationally and and documentation, that the internationally accepted process A. In US waters and the US Outer equipment has been found in for establishing and verifying Continental Shelf (OCS), it has compliance with the applicable conformance with robust safety not been a mandatory regulatory ABS or other standard. standards that the Administration requirement for drilling systems is seeking. ABS believes that to be reviewed through the When re-certifying such the classifi cation model should classifi cation model. ABS does equipment, this documentation be considered as one of the