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DNV enhances
offshore class rules
Integrated Barrier
Risk Management
Photo: xx
The power of joining forces
several new JIPs launched
Shale Gas Risk
Management
contents
www.dnv.com
oil & gas
update
News................................................................................................................... 4
More control better safety............................................................................. 6 Published by DNV Maritime and Oil & Gas Communications
The power of joining forces............................................................................. 9
Subsea forgings JIP a winwin for the industry......................................... 10 Editorial committee:
Cathrine Torp, Svein Inge Leirgulen and Kristian N. Linde
Elevating the industry to ahigher level........................................................ 11 Joyce Dalgarno, Editor
Determining a more accurate vortex-induced vibration (VIV)
assessment of complex jumpers..................................................................... 12 Design and layout: Coor Media 1304-001
Vortex-induced motion study for deep draft semisubmersibles................. 13 Front cover: luoman / Getty Images
Improved design, analysis and testing of umbilicals.................................... 14
Stimulating investment in energy efciency measures................................ 15
DNV enhances offshore class rules................................................................ 16
Free choice of class for oaters in the Gulf of Mexico DNV is chosen... 18 Please direct any enquiries to DNVUpdates@dnv.com
RPSEA
implemented in the Technip Houston Prior to this project, DNV has worked
design and that the new technology is with Deepstar to mature these concepts.
documented to be safe.
As well as the design verification scope,
the contract includes a Structural Integ- line end manifolds (PLEMs) and jumpers.
rity Failure Risk Assessment covering all Since the contract was initially awarded,
phases of the project. Production start-up Verifying Williams the scope of work has expanded to include
is planned at the end of 2016. Tubular Bells project the design review for risers, valve-procure-
ment inspection services and inspection of a
marine load in Wakayama, Japan. Addition-
ally, DNV now serves as the certified verifica-
DNVs Deepwater Technology group in tion agent for the fabrication portion of the
Houston is working with Williams Field Titanium Tapered Stress Joints (TTSJs).
Services (Williams) on the materials verifica- DNV has been able to fill various roles
tion, fabrication and installation phases of throughout Tubular Bells verification,
the Tubular Bells Export Pipeline project in fabrication and installation processes, said
the Gulf of Mexico. DNV is providing Wil- Miguel Urias, DNVs project manager. In
liams with independent, third-party verifica- cases such as these, where DNV is advocat-
tion support. ing industry best practices, we are able
Williams is constructing a 16-mile export to provide our customers with independ-
pipeline system for the Tubular Bells field ent verification of all components during
in the Gulf of Mexico. This pipeline will the design, construction and installation
transport oil and gas from the future Gulf- phases. This also safeguards the customers
star FPS SPAR to the existing Blind Faith interests.
export pipeline system located in Block The expected completion date for the
Statoil
MC-728. DNV is verifying the design, fabri- construction of the pipeline is December
cation and installation of the pipelines, pipe 2013.
Transocean
with first oil due in 2016. DNV has been floating production units. The committee
involved since the early concept develop- is intended to provide an active forum for
ment phase and has also helped Total the industry to share and discuss current
with extensive independent verification to and future developments in technology >> Terry Loftis, Transoceans Director of
Engineering, has been appointed as the Chairman of
provide confidence in its first TLP Project. and practices, and support initiatives that DNVs global Rig Owners Committee.
DNVs overall technical competence and will benefit the industry.
experience with TLPs were a key factor in The functions of the committee also MODUs began when he was an independ-
winning this contract. include providing industry input to DNVs ent consultant for Transocean working on
current and future activities, including the design and construction of semi-sub-
DNVs innovation programmes, industry mersible drilling rigs in the mid-1980s, and
initiatives and rule-making process. While he joined Transocean in 1997. After being
DNV updates the industry on its activi- actively involved in the design and con-
DNV to cooperate ties at committee meetings held annually struction of several ultra deepwater drill-
with Korea Gas in Houston, Aberdeen and the UAE, the
committee typically offers feedback on the
ships in Korea, he returned to Houston to
lead the Dynamic Positioning & Controls
Corporation on a quality and scope of DNVs services related group within Transocean Engineering until
to floating drilling and production units. he was appointed to his current position as
feasibility study of Mr Loftiss technical involvement with Director of Engineering.
LNG bunkering
in Korea LNG bunkering in ports in the south-
eastern area, Pusan, and western area,
Incheon and Pyeongtaek. This project will
be led by Dr Sun Il Yoo, Senior Customer
DNV and Korea Gas Corporation Service Manager in DNV Korea, who will
(KOGAS), Koreas national gas company, be assisted by the DNV Clean Technology
have entered into an agreement to coop- Centre in Singapore.
erate on a feasibility study on the estab- Through this project, DNV aims to
lishment of an LNG bunkering infrastruc- define Koreas commercial opportunities
ture in Korea. This is one of the largest related to LNG distribution and ship-
and most comprehensive feasibility studies ping by addressing possible LNG supply
ever initiated in the worldwide LNG bun- chains and infrastructures, LNG shipping
kering industry. technologies and bunkering, standards,
KOGAS
DNV will qualitatively and quantita- regulations and issues regarding public
tively study the feasibility of implementing acceptance.
The barrier approach uses the bow tie risk quantitative risk assessment (QRA) to
model as its under-pinning. This sets out better define risks and risk management.
in a simple figure the Hazard, the Top But these are not so useful for operations
Event (i.e. the undesired loss of control and this is where the Bow Tie tool, if prop-
or leak event), the Threats that cause this erly managed, can provide real benefits.
and the Consequences that might arise. In
between the Threats and the Top Event Operational Risk Management
are the Prevention Barriers those con- using Bow Ties
trols (or controls and safeguards) which The first step is to bud the bow ties and
Photo: DNV
Event and the Consequences are Mitiga- Clearly assigning responsibility for all
Robin Pitblado, Director SHE Risk Management
tion Barriers which reduce the magnitude barriers
of the potential consequences. This figure Verifying that there are sufficient barri-
is usually extended to depict Barrier Decay diagrams are shared with staff and contrac- ers in place for all threats more barri-
Mechanisms (or escalation factors), which tors for training purposes and with regu- ers for higher risks, fewer for lower risks
show how the main pathway barriers can lators to demonstrate safe control. Bow
degrade and what specific controls are Ties are the primary operational tool that The above set of barrier definitions is
put in place to prevent this (e.g. training, addresses major accident events and how good, but on-going performance monitor-
competence, inspection, preventive main- staff and contractors can manage these ing is better and more powerful. Barriers
tenance). The figure is often enhanced safely. degrade over time if not looked after and
using colour coding to show which group DNV views this as a basic implemen bow tie diagrams can become fiction if
is responsible for each barrier (operations, tation of bow ties and as not at all extract- not actively managed. Ideally, companies
maintenance, corporate, contractors, etc). ing their full potential. In the overall con- would like near real-time status on each
Many operators develop a collection of text of risk management, at design time barrier in order to be able to manage
bow ties for their major activities typically DNV sees a mix of tools as being necessary their activities safely. Some companies
10-20 and when built-out fully these regulatory and classification compliance have developed documents that specify
define all the major controls deployed to tools as well as both qualitative tools (e.g. the barriers that must be functioning for
make the offshore facility safe and protect HAZID, HAZOP) and quantitative tools every planned activity this recognises
against environmental spills. The bow tie (e.g. CFD consequence modelling and that barriers have holes and some may be
Barriers to eliminate
& prevent causes of Barriers to control
hazardous event consequences & effects
e.g. flammable gas
EFFECTS
Cause 2 TOP EVENT Consequence 2
Operator
Error
Steam PVC Pressure relief Watchmen Ammonia
Cleaning Control system system Pressure Vessel
Procedure (isolated) (isolated) (not implemented)
Enhance work
permit process
Enhance
Maintenance proc
Figure 2: Example of BSCAT build-out (from a public US Chemical Safety Board investigation report)
$7,000
Reportable incidents per 200,000 manhours
3.5
3 $6,000
2.5 $5,000
2 $4,000
Mean/5yrs
1.5 $3,000
API
BP
1 Chevron Texaco $2,000
ConocoPhillips
0.5 Dow
ExxonMobil $1,000
Shell
0 Concawe $0
197276 197781 198286 199296 199701 200206 200711
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Figure 3: Occupational vs major accident performance. Source: M&Ms 100 Largest Losses to 2011.
Includes Refining, Petrochem, Gas processing, Terminals, Upstream.
DNV maintains records of oil, gas and past 20 years. Conversely, there has not been any been in the North Sea, where major accident
petrochemical industry safety performance and decline in inflation-adjusted major accident claims rates (as indicated by large leaks) have
these show that the industry has been as compiled by Marsh in its 100 Largest Losses significantly declined. The difference between the
tremendously successful in reducing occupational- list. DNV believes that the methods which have North Sea and other places is the focus on
related accidents, but has been much less delivered the great improvements in occupational barriers and barrier management and ensuring
successful for major accidents. Occupational safety are not appropriate for achieving a that barriers are maintained at their specified
accidents have fallen by an average factor of 3 in reduction in major accidents and that is why there performance standard throughout the facilitys
the past 10 years and nearly a factor of 10 in the has been so little improvement. An exception has lifetime.
The power of
joining forces
Photo: Getty Images
A unified set of requirements across the to forging shops which may have limited contributions from, and the experiences
industry is expected to make procurement or no experience with the applicable of, major oil companies, subsea contrac-
easier and help to reduce quality prob- requirements in the subsea industry and tors and manufacturers of steel forgings.
lems. On this basis, and in response to ini- locations that are more remote and less DNV will contribute its own pool of
tiatives from key stakeholders in the subsea accessible for follow-up and surveillance. subject-matter experts who have wide expe-
community, DNV has taken steps to estab- rience in this field.
lish a forging-material Joint Industry Pro- ENSURING HIGH QUALITY
ject (JIP). This JIP which aims to provide The approach to ensure consistently high
a Recommended Practice for global use and repeatable quality across both the
should be seen as a contribution towards industry and geographical regions, and to
a win-win situation for the industry. build confidence in the final product, is to
adopt a unified material standard with a
BACKGROUND/CHALLENGE consistent methodology to manage all the
The motivation for the JIP is to improve steps in the supply chain processes.
the quality and reduce the cost and deliv- The project will incorporate valuable 2 5 15
ery times of forgings for the subsea indus- Quality cost with increasing batch size
try. Due to quality concerns, end users of
subsea systems typically have company-
specific requirements for subsea forgings. CONTACT INFORMATION
This makes stocking prefabricated forg-
ings, and thereby shorter lead times, diffi-
cult for the vendor industry. A prerequisite
for shortening lead times and making pro-
ject execution more efficient is the timely
Photo: Eldy/Studio E
In order to achieve higher availability, professional follow-up in the inspection the initiative in a JIP and directly invite all
reduce the risk of gear failure and lower and maintenance of jacking gears is obvi- the players in the self-elevating segment
the life cycle cost, DNV invites the industry ous, but not directly straightforward from to participate. Its only by including the
to participate in a Joint Industry Project a practical point of view. The high turno- experiences and relevant considerations of
(JIP). The projects main focus will be on ver of people with specific knowledge on other industry players that the objectives
defining best practices in the maintenance board, the evolving nature of the systems of the individual partners can be reached,
and inspection of jacking gears. and the natural focus on merely the pro- he states.
The consequences of jacking gear fail- duction process and systems on board The JIPs goal is to develop a recom-
ure range from the operator being unable make this follow-up often challenging for mended practice document that describes
to reposition the platform to logistical an owner, Michiel van der Geest explains. the solution to achieve higher availability
challenges in correcting the failure. The Based on their respective backgrounds and at the same time reduces the risk of
worst case scenario is if the failure occurs as a classification society and recognised jacking gear failure. The overall life cycle
in the middle of a jacking operation, as service supplier, DNV and Dutch com- cost will also be on the agenda. The JIP
this may lead to an unstable platform that pany WillTeco have initiated a project to plans to collect and analyse experienced
is prone to wave impacts. This implies a improve the inspection and maintenance (near) incidents, mutually review current
concrete danger to the unit, says DNVs of jacking gears. In our experience, the inspection and maintenance work support-
Offshore Class product manager, Michiel best way of solving common industry chal- ed by risk-based modelling and, finally,
van der Geest. lenges is to join forces, explains Michiel define and select best practices.
Facing these risks, the need for van der Geest, so we decided to carry out
CONTACT INFORMATION
Photo: DNV
Photo: Getty Images
It has been noted lately that the industry is The JIP aims to:
increasingly considering complex jumper Address gaps in the state-of-the-art assess-
may comprise pipe sections of various ori- in the current damage calculation
entations. Even though complex jumper approach
systems are advantageous with regard to Provide the industry participants with
Vortex-induced motion
study for deep draft
semisubmersibles
Deep draft semisubmersibles in the Gulf of Mexico are subject to high currents
associated with the loop current and eddies that can lead to large amplitude Vortex-
Induced Motion (VIM). This can result in significant fatigue in moorings and risers.
More knowledge is needed to manage this risk adequately, as current practices are
overly conservative and costly. DNV is therefore establishing a Joint Industry Project
to develop best practices for quantifying VIM for deep draft semisubmersibles.
Text: Kristian N. Linde, DNV
Operators have stated that the existing strakes, and help screen the VIM mitiga-
design practice (tow tests) for VIM is tion strategies to be model tested. Finally,
inadequate and overly conservative for the VIM and VIM mitigation will be summa-
design of mooring and riser systems. They rised in the form of VIM design guidelines.
wish to remove this conservatism by using In order to study the problem and
a combination of full-scale measurements develop a plan, background work will need
and Computational Fluid Dynamics (CFD) to be performed. Systematic CFD will then
in order to fully represent parameters that be carried out to study and improve the
cannot be included in tow tests, such as VIM performance of the semisubmersible
velocity shear, surface wave effects and hulls. Overall, the study will yield a better
velocity direction variation with depth. understanding of semisubmersible VIM
Removing present conservatism could and provide options to mitigate VIM.
reduce the cost of the mooring and riser
systems for a deepwater field development CONTACT INFORMATION
project by around USD 10M. This would
easily justify funding CFD work at an order
of magnitude of USD 100K per project
(i.e., 1% of the savings achieved in reduc-
ing mooring and riser system costs).
This project will leverage existing
model test results and field measurements
as appropriate from information available
Photo: DNV / Designimitations
Photo: DNV
Improved design,
analysis and testing
of umbilicals
DNV is launching a Joint Industry Project to gather
knowledge to find out how increasingly complex
and valuable umbilicals perform over time.
Text: Kristian N. Linde, DNV
Subsea umbilicals are now designed with for the safe and reliable design of subsea physical tests and analytical methods. DNV
multipurpose functionality such as subsea umbilicals, DNV invites operators and will launch this Joint Industry Project (JIP)
control and monitoring, chemical injec- manufacturers to review umbilical test data together with UltraDeep.
tion, gas lift and electric power transmis- for calibrating tools and validate analytical Key deliverables of the JIP include the
sion. In deepwater, dynamic umbilicals tools and methods. development of a state-of-the-art guideline
have to withstand high-end termination Planning the umbilical qualification for testing umbilicals and a report on the
loads and fatigue issues. Calculating what test programme is extremely important design and analysis of umbilicals validated
can go wrong with these valuable and for understanding the complex cross- against test data. Findings will be directly
complex systems demands computing sectional behaviour of umbilicals. Proper applied to the HELICA and ABAQUS
power and insight. To provide the industry instrumentation of the umbilical test speci- analysis tools.
with improved methods and analysis tools men is vital to establish the link between
CONTACT INFORMATION
Photo: DNV
Illustration: DNV
MAYURESH Dhaigude
If you would like to know more or
participate in the JIP, please contact DNVs
project manager, Mayuresh Dhaigude,
In deepwater, dynamic umbilicals have to withstand high end Senior Engineer.
termination loads and fatigue issues. What could possibly go wrong? mayuresh.dhaigude@dnv.com
Stimulating investment
in energy efciency
measures
In close cooperation with ship owners and charterers, DNV has compiled tools
that ship owners and charterers can use to reduce fuel consumption.
Text: Synne Opsand, DNV
The problem of split incentives is well reducing effect on fuel consumption were and propeller polishing. A common plat-
known in the shipping industry. It is an identified, including an improvement form with agreed initiatives will be much
unusual situation for a business, explains potential of 16%. The seven shipping easier to communicate and implement in
Knut Ljungberg, DNVs project manager. companies together own and operate 170 the industry.
The ship owners control the initiatives, vessels. With the vessels emitting around The last phase of the project will be
while the charterers benefit from reduced 1.7Mt of CO2 every year, the initiative will set in motion in June 2013. This is a pilot
fuel expenses. In a joint industry project have a considerable impact on the environ- project in which the guidelines, commu-
called Energy Efficient Offshore Partners, ment. Having the charterers involved cuts nication framework and incentive scheme
seven offshore support vessel (OSV) own- the charterers fuel costs and makes sure will be applied together with the imple-
ers and two charterers have been work- the initiatives spread to other vessels too. mentation of energy efficiency measures
ing together with DNV to mitigate this In phase II, practice guidelines were on several ships over a period of four
barrier to investment in energy efficiency established, as were a communication months. Successful results in the pilot may
measures. framework and an incentive scheme to make way for a common practice in the
Phase I of the project was completed split the financial reward gained from the industry.
in September 2012. In this phase, several reduction in fuel consumption. Examples
energy efficiency measures and their of key focus areas included DP operation
CONTACT INFORMATION
Photo: DNV
David Puu/Corbis
Knut Ljungberg
If you would like to know more or participate
in the JIP, please contact DNVs project
Fuel is a major cost item today and DNV can assist with all aspects of reducing fuel consumption from manager, Knut Ljungberg,
implementation of operational energy management services to technical solutions, such as retrofitting fuel Principal Consultant.
saving devices on existing ships. knut.ljungberg@dnv.com
DNV enhances
offshore class rules
DNV has restructured its offshore classification rules for Mobile Offshore Units in order to improve
transparency and enhance safety. Our aim is to help the rig owner in the building process to clearly
show that the unit is constructed in compliance with reliability and safety standards. At the same
time, yards can achieve improved control of the building process and have the ability to document the
safety level of alternative solutions, says Erik Henriksen, Director for Mobile Offshore Units at DNV.
Text: Svein Inge Leirgulen, DNV
shore units are safe, efficient and reliable. that safety and design principles are
This is where DNV gives added value, since international standards and codes. How- implemented by following detailed
a more reliable unit equals less downtime, ever, in addition, they include a compre- interpretations
says Henriksen. hensive description of interpretations.
DNV is continuously developing its This makes the rules requirements easy The enhanced and restructured format
standards and guidelines in order to be to understand and apply throughout the is now open for comments during a six-
in the forefront. We have launched an design, construction and operation of the week consultation period. Subsequently,
enhanced and restructured version of our asset, he points out. DNV will update the standards based
offshore classification rules for Mobile on the input received, followed by final
Offshore Units. Im confident that these GOING BEYOND BASIC REQUIREMENTS publication.
will provide stakeholders with a clear DNV recognises the competitive advantage
description of the technical requirements. of building in excess of the basic level
As before, the rules are aligned with the required for compliance with regulations.
IMO MODU Code, International Asso- Going beyond basic requirements will not
ciation of Classification Societies (IACS) only result in improved safety, but also Visit www.dnv.com/offshoreclass
to learn more, download the
Unified Requirements and other relevant increase reliability and hence have a direct rules and provide comments.
DNV has been awarded the classification of Safety and Environmental Enforcement
contract for a new build floating produc- (BSEE) has also appointed DNV as the
tion semi-submersible platform for the CVA for the structure, mooring and riser,
GoM. The Delta House floater will be and all this work will be executed from the
operated by LLOG Exploration Company, Houston office. The Design Basis Agree-
a premier private exploration and produc- ment for Delta House, as approved by the
tion company in the Gulf of Mexico. Coast Guard, is largely based on DNVs
Following a detailed review of DNV Photo: LLOG Exploration Company offshore rules for a FOI (Floating Offshore
rules and procedures, the U.S. Coast Installation).
Guard has confirmed it will accept plan The hull is designed on the basis of
review and inspection functions conducted EXMAR Offshore Companys proprietary
by DNV for the Delta House floater as part OPTI-11000 and will be fabricated in
of the units certification under Title 33, Korea, at Hyundai Heavy Industries. The
Code of Federal Regulations. This follows topside production system is designed by
from the general acceptance given by the The Design Basis Agreement for the Delta House New Orleans-based Audubon Engineering
U.S. Coast Guard in 2007 and provides a floater is largely based on DNVs offshore rules for a Company, and fabrication and integration
Floating Offshore Installation.
new option for owners and operators of with the hull will take place at the Kiewit
offshore floating units. Offshore Services Yard in Ingleside, Texas.
Owners have expressed a strong desire technology and, of course, reduced down- The completed FOI will be installed on the
to choose the classification society for time. We are confident that both owners Mississippi Canyon block 254 in the deep-
floating offshore installations in Ameri- and regulatory agencies will benefit from water U.S. Gulf of Mexico. Fabrication of
can waters and we know there are many this, he said. the hull starts in early 2013 for planned
owners, designers, operators and yards DNV has carried out extensive verifica- production in 2015.
that would prefer to work with DNV. tion and independent analysis work on DNV is currently also classifying eight
This contract is proof that they can do so many GoM floaters throughout the past 20 newbuilding projects as well as OSVs, div-
and be confident of legal and regulatory years, including many high profile failure ing support vessels and a U.S. flag ro-ro/
approval, said Kenneth Vareide, DNVs and accident investigations. The company container ship for the U.S. Jones Act trade.
Director of Operations for Maritime in has a wide portfolio of CVA and develop- These are at various stages of construction
North America. ment projects for the oil and gas industry in U.S. yards in the Gulf and on the East
With its local capabilities and exper- in the GoM. DNV was also the classifica- Coast.
tise, DNV is a well-established alternative tion society and CVA for the first FPSO on Globally, DNVs market shares of clas-
and experienced partner for classing float- the Cascade and Chinook field in the US sification contracts awarded for newbuild-
ers and complex projects in the Gulf of GoM. ings in 2012 were as follows: FPSO/FSRU
Mexico. We now look forward to address- DNV will carry out approvals of classi- 70%; drillships 30%; semi-submersibles
ing the industrys needs and desires for fication and verification work and surveys 60%.
increased safety, reliability, cutting-edge related to activities in the US. The Bureau
Photo: PGS
The new notation focuses on the
increased availability of the vessels during
critical phases of the seismic operations. As
Jan Kvlsvold, Director for Market and Business Big, bold and beautiful PGS Ramform Titan
well as vessel operators, DNV has consulted Development an icon for efficient marine 3D seismic acquisition
seismic handling and high-pressure equip-
ment suppliers to ensure that all current
and future industry challenges are compre- Maintaining propulsive power is a key Beyond this, the class notation also sets
hensively dealt with. issue. The class notation has therefore a requirement for the bridge arrangement
The new notation was released last year taken the DNV concept for redundant pro- to ensure a good view of the streamers
and strengthens DNVs position in the pulsion one step further so that any failure and any workboats that are close by during
seismic classification market as the indus- on board will not lead to the loss of more normal operations. High-pressure systems
try focuses more strongly on deepwater, than 50 per cent of the forward thrust. This are also addressed in the class notation to
frontier exploration. DNV has the great- is sufficient to maintain a minimum speed ensure that deck operations can be carried
est share of this market. More than every of a few knots and will protect any high-cost out safely by the crew.
second seismic vessel is DNV-classed. By air guns and streamers that are deployed. The worlds energy demand is increas-
introducing the new class notation, we are Seismic vessels typically operate for ing, said Mr Kvlsvold. Even though new
helping owners in this high-tech special- many months continuously without seek- energy sources are being developed, fossil
vessel segment to meet future demands ing harbour. The class notation requires a fuel will maintain its dominance well into
with the utmost safety and reliability, says deck arrangement that facilitates side-by- the future. The demand for suitable seis-
Jan Kvlsvold, Director for Market and side transfers of crew and supplies from a mic exploration vessels is already high and
Business Development. seismic support vessel. will continue to grow.
Photo: SWRP
tem is now available for use by the industry
from the Stavanger base, which was inau-
gurated by Norways Petroleum & Energy The first capping stack is available for use from the Stavanger base. Other systems will be available in South
Minister Ola Borten Moe in March. Africa, Singapore and Brazil.
The system builds on established indus-
try experience and has been designed DNV qualifies Nine majors in one team
according to research into potential inci- the new technology
The Subsea Well Response Project
dent scenarios and geographic variations DNV has been engaged by SWRP to (SWRP) is a joint project from nine
in weather, ocean and oil conditions. It undertake design verification, fabrication operators; BG Group, BP, Chevron,
includes four capping stack toolboxes and surveys and witness testing of the capping ConocoPhillips, ExxonMobil, Petrobras,
two hardware kits for the subsea applica- stack system. The project has also included Shell, Statoil and Total. Their plan is to
build four well capping stacks which will
tion of dispersant at a wellhead. The stor- elements from DNVs Qualification Pro-
be placed at different strategic locations
age locations have been chosen due to cedures for New Technology. The main in the world. These are intended to be
international coverage, strong transport fabrication and testing activities have been used as contingency if an offshore well
links and effective logistics for securing carried out in Houston, but have also blowout occurs and if the rigs BOP
maximum readiness and swift mobilisation. included fabrication surveys at different has failed. This capping stack system
provides capacity to shut in the well
The intervention system is designed to suppliers in Europe.
stream or to divert the flow into a subsea
handle most subsea oil well incident sce- containment system so the hydrocarbons
narios around the world. can be collected.
safety critical systems while in operation, from previous projects with Seadrill, yard had assumed the supplier was writ-
he says. Odfjell, Total and Statoil indicates that ing the functional design specifications
Tyssen wants to treat changes in the applying the ISDS class notation can eas- for the mud system. The supplier assumed
software system in the same structured ily save USD 6-20 million by addressing the yard was writing it. ISDS assessments
manner as they handle changes on other potential problems early in a project and identified that it was not being handled.
critical components on the rig. For thereby avoiding the delays caused by the In another case, interface design activities
me ISDS is about planning things right need to re-work software. required by ISDS detected that the inter-
and facilitating structured collaboration faces for the rig data recorder were not
between all the key vendors including ISDS SUCCESS STORIES GROW being handled during design. Additionally,
the yard to ensure that when all the sys- As DNVs experience grows, so do exam- it was determined that some suppliers were
tems are installed its just plug and play. ples of ISDS success, says David Card, sen- proposing software solutions based on
Our experience from the pilot we ran on ior principal specialist, Ships and Offshore the Windows XP, no longer supported by
Borgland Dolphin is that we significantly Electrical at DNV. Most suppliers have no Microsoft.
reduced the commissioning time after structured way of making sure all software DNV hopes that the Bollsta Dolphin
installation on board. functionality has been verified, says Card. project will be a game-changer for the
DNV applies methodologies that have This is corrected with the creation of veri- industry on how to design, build, install
proven effective in the aerospace, telecom- fication strategies and traceability from and test software systems.
munications, defence and automotive requirements to verification procedures.
industries. Their experience with ISDS In an earlier project we found that the
The RP is intended to form the basis for gas industry. In China, too, both custom-
the future development of a worldwide ers and media are gathering to learn more
recognised standard for safe and sustain- about DNVs risk-based approach to man-
able shale gas extraction. The RP has been aging the extraction of unconventional
presented in London, Houston and, most resources. At the inaugural meeting of the
recently, Beijing. IEA Unconventional Gas Forum, DNV was
According to Steinar Thon, DNVs invited, as one of four industry players, to
associate director who was in charge of the present how the RP compares to the IEAs
development of the RP, DNVs creation of Golden Rules.
the recommended practice grew out of the Srum hopes to spark a debate about
companys core purpose: to safeguard life, risk management between all stakeholders.
property and the environment. We could Obviously, the element of communication
Photo: DNV
see there were certain guidelines and is very important, he says. Currently, the
design standards for individual aspects of debate is very polarised both in academia
shale gas, he says. What we set out to do and between the industry and other stake-
was to develop a more complete document Steinar Thon, Associate Director, DNV holders. Having rational conversations and
to cover a wide range of risk categories. discussions based on facts is one of the
We also ensured that this recommended best risk management methods out there.
practice was in line with DNVs experience HIGH LEVEL OF INTEREST
with the oil and gas value chain. This fits The market has shown much initial inter- Collaborative
well with our vision to have a global impact est in our approach, says Lars Srum, development approach
for a safe and sustainable future. Director of Technology and Services for Thon believes some of the success is due
Controversy and polarised debate DNV Europe and North Africa. We are to the way in which the recommended
are constant themes as proponents and continuously receiving requests to speak practice has been developed. The frame-
opponents discuss the extraction of uncon- at conferences and present papers and work was developed over an 18-month
ventional resources, says Thon. Since are now established as the leading voice period, which included collaboration with
the RP combines current best practices for risk management on the subject in stakeholders as well as a review of existing
and standards in the industry with a risk- Europe. We are also getting good response practices and guidelines. Multiple organi-
based approach, it can serve as a common in North America. DNV will be presenting sations have already developed recommen-
reference point and help bridge the gap its views, services and the RP throughout dations and guidelines, but no complete
between parties with opposing views. Our the year at various conferences and to dif- risk management framework has existed.
recommended practice ensures that con- ferent regulators around the world. Although the practices are risk-based, they
tentious issues are managed in an accu- The launch of the final version of the are technology-neutral, allowing for local
rate, balanced, transparent and traceable RP in Houston in January 2013 was met differences, and are complementary to
way. with keen interest in the mature US shale existing regulations.
Photo: DNV
Lars Srum, Director of Technology and Services for DNV Europe and North Africa.
FLNG
an old idea comes of age
In its 2011 World Energy Outlook, the IEA asked the question Are we entering
a golden age of gas? Nothing, of course, can ever be certain but there are
very many signs pointing to a positive answer to that question.
Text: Conn Fagan, DNV
The current and projected future availabil- units (FSRUs) currently in operation, and
ity of natural gas, from both conventional our work on the most complex FPSOs in
and unconventional sources, the widening some of the most challenging locations,
demand and increasing range of applica- together with the verification and con-
tions, the focus on the need for supply sultancy work which we have performed
security and diversification, and the rela- for many years for the land-based LNG
tive environmental benefit compared to industry, enable us to continue to play an
other fossil fuels all point in the direction important role in developments in floating
of a bright future for natural gas. LNG applications.
As a means of bringing this gas to
market, transport as LNG is a flexible The current surge
Photo: DNV
solution and in many cases the only techni- In the last 10 years, we have seen FLNG
cally feasible solution in competition with concepts and technologies maturing so
pipeline transport. For offshore gas wells, that today the first construction projects
Conn Fagan, Vice President, DNV Maritime and
the option of producing this LNG at the Oil & Gas. are under way. These reflect the confi-
offshore location rather than first piping dence of investors, operators and regula-
it to shore for LNG production has now tors that the work of the past 30 years has
become a viable solution in terms of both resulted in a technology capable of being
the availability of technology and project assessments of FLNG concepts. For exam- deployed and considered as a viable field
economics. In that development, DNV has ple, an FLNG unit was originally proposed development option.
and has had a key role to play. for the Kangan field in Iran and DNV car- At the time of writing, there are two
ried out a design assessment of the Kvrn- FLNG units under construction for opera-
The History er/Moss barge-mounted liquefaction plant tion in the Asia-Pacific region, one of
DNV has had a long involvement in the design. This resulted in the development which is being built to DNV class. While
LNG industry, indeed from its very start. of the first rules and recommendations for much of the focus today is on this geo-
We have, of course, played a central role FLNG units in 1979. graphical area, with a significant number
in the marine transportation of LNG, class- We have naturally followed the develop- of FLNG units being proposed to tackle
ing a large number of the gas carriers cur- ment of FLNG concepts since then, from the planned development of Australian
rently in operation and having had a key concrete barge structures to the current gas fields, such units are currently being
role in the initial development of the main designs using ship-shaped structures which proposed as the solution for gas fields in
technologies for LNG containment. How- parallel the development of oil FPSOs. very many geographical locations, includ-
ever, our engagement in floating liquefied Our long involvement with the marine ing both North and South America,
natural gas (FLNG) units also stretches LNG industry, including with many of the East and West Africa and the Eastern
back in time to some of the earliest fleet of LNG floating storage regasification Mediterranean.
Photo: DNV/Designimations
We foresee that FLNG units will move into similar areas as oil FPSOs and perhaps into areas where gas development may be more acceptable than oil development,
such as the Arctic region.
Many of the presently planned projects from benign environmental areas of the DNVs Offshore Technical Guidance for
Floating Liquefied Gas Terminals
are entering the pre-FEED or FEED phases world to more challenging areas. Develop-
and DNV has been involved in helping ment is likely to involve both ultra large This publication compiles the essence of more than 30
designers and project owners to ensure a scale production capacities on large float- years of DNV research into one document. It presents
safe and effective design. These projects ing units and much smaller scaled units a guideline for the design and classification of floating
involve concepts with variations in vessel capable of economically exploiting smaller installations for handling liquefied natural gas.
size, production capacity, gas composition reserves. The range will stretch from using
The guideline describes principles and procedures
and key technologies, such as liquefaction- some of the most complex floating units and provides guidance on classification requirements.
plant, containment and LNG-transfer ever built to much simpler units, perhaps It further addresses a number of technical issues
systems. To address these developments, involving barges in combination with a considered to be especially relevant for floating
DNV has developed specific Rules and storage vessel. It is anticipated that floating LNG installations. This document is intended for
guidance only and should be used together with
Guidelines for such concepts which bring units may also serve to process gas from
the relevant DNV Rules, DNV OSS 103 Rules for the
together DNVs long experience within the land wells, including both shale gas and Classification of Floating LNG/LPG Production, Storage
area. coal seam gas, given the possibility of build- and Loading Units and the associated DNV Offshore
ing such units at a reasonable cost and Standards which specifically address the relevant
The Future within a reasonable time frame compared engineering disciplines. For classification purposes,
the requirements given in the DNV Rules are to be
If the outlook for gas and LNG continues to a land-based development.
used. A prime objective is to address the risks specific
as anticipated, we foresee that FLNG units With its wide range of services and long to floating liquefied gas concepts and how they
will move into similar areas as oil FPSOs and ongoing history within the FLNG can be managed by applying offshore classification
and perhaps also into areas where gas industry, DNV aims to continue developing systematics.
development may be more acceptable than its technology and business knowledge in
Download the publication
oil development, such as the Arctic region. order to serve its clients within this exciting
More valuable information
The development of current technology business area. covering the entire LNG
relating to transfers, containment and value chain available from
processing will permit the concept to move blogs.dnv.com/lng
Photo: PETRONAS
of significant gas reserves in remote and
stranded fields and, beyond that, we fore-
see a number of these very high invest-
ment projects being built throughout the
world as a means of developing gas fields Producing 1.2 million tonnes a year (mtpa) of LNG, PFLNG 1 is expected to be the worlds first floating
and transporting the gas economically to liquefaction unit in operation when completed by the end of 2015.
I agree that it is a paradox that the melt- Diversity calls for Therefore, in order to ensure safe opera-
ing ice cap opens up for more hydro- a stepwise approach tions in the Arctic, the industry will benefit
carbon extraction, but global warming Many speak about the Arctic as one place, from starting exploration in areas whose
requires global solutions. And it is a fact but it is not one homogeneous area with conditions are not so different from those
that the need for rare minerals, oil and the same set of opportunities and chal- we are used to today. Hence, we should
gas will drive the need for activities further lenges everywhere. Actually, it is a very not move to the more unexplored areas
north the coming decades. Another impor- diverse part of the world, rbeck-Nilssen before improved technology has been
tant driver is that the Arctic is actually a highlights. developed and sound experience has been
politically stable area. This strengthens its Some areas, such as the southern part gained in the easier areas. This is what we
relative position regarding safe and pre- of the Barents Sea, can be considered very refer to as a stepwise approach, he says.
dictable access to resources and transport similar to the North Sea with respect to cli-
routes in particular through the North mate conditions. But, in contrast, the east Manage the risks
East passage, explains rbeck-Nilssen. coast of Greenland is a far more remote not only consequences
Most people dont realise that much and difficult area for offshore operations. According to rbeck-Nilssen each Arctic
of the legal framework is in place as most Generally, its remoteness and harsh region has its individual set of risks and
of the undiscovered oil and gas is within environment make the Arctic a challeng- these have to be managed. But even
national jurisdictions determined by UN ing place for possible rescue operations though risk is the combination of Prob-
Resolutions, for example. Concerns about and oil spill response operations, for ability and Consequence many tend
a race to exploit these resources are instance. Since there is not one Arctic, but to focus on the consequence only and
somewhat misguided so what we are talk- many Arctics the challenges faced in one neglect the associated probability of an
ing about is harmonisation. Also, the polar area may not be an issue in others. And, accident happening. In order to have a
code issued by the International Maritime practically speaking, technologies and pro- complete risk overview, both the probabili-
Organisation will be critical to regulate cedures suitable to one area may not be ty and consequence need to be thoroughly
positively shipping and maritime activity, fit for purpose in others, rbeck-Nilssen identified and analysed. And I would like
he says. emphasises. to point out that all industrial activity
Photo: DNV
Top left and two pictures lower right: Getty Images. Top picture right side: Thinkstock/Ranieri Meloni.
Illustration: Coor Media. Photo credits: 2nd from top left: Webcast, 3rd from top left: DNV.
= Safety barriers
Managing safety barriers: Risk management means identifying, assessing, prioritising, minimising and mitigating risks. (Complex systems fail in complex ways).
involves risk. The risk can never be zero this, a thorough discussion between the The consequences of an accident in the
unless an activity is prohibited, meaning industry, regulatory bodies, authorities and Arctic are likely to be more severe than in
zero activity. especially the society at large needs to be other areas. So achieving a risk level in
done. Most probably the views will differ, the Arctic that is equivalent to the level in
Society must agree on an but transparency and openness will foster the North Sea will require a special focus
acceptable risk level understanding and mutual respect for the on reducing the probability of incidents.
Acknowledging that there will be Arctic different viewpoints. However, accidents may occur and we
activity, rbeck-Nilssen recommends that should not forget appropriate prepared-
a risk-based approach is the most appropri- Safe as the North Sea? ness to mitigate their consequences, he
ate one, since both possible probabilities The oil and gas industry has learned a lot points out.
and possible consequences are to be con- from its operations during the past few Appropriate preparedness capability is
sidered in a transparent manner. In this years. Not least major offshore accidents in some cases challenging. For instance, in
way, the risks and benefits of activities are have led to great improvements in regula- response to oil spills in ice, the best option
also balanced. tions and technologies so that risk can be today is dispersants and burning while
However, the society must determine better managed. For instance, the occupa- there is no mechanical recovery option.
the optimum balance between the risk tional risk on the Norwegian Continental rbeck-Nilssen explains that to address
and the associated benefits of activity in Shelf has improved significantly. some of the capacity challenges relating
the Arctic. Willingness to accept risk also For DNV, it is an important principle to oil spill preparedness, DNV has for
means that society can harvest the ben- that the risk level in the Arctic must be instance looked into using the fishing fleet
efits, he explains. equivalent to or better than the best with the innovative Catchy fishing vessel
But a very relevant question is what performance in the industry today. In this concept. Here the gear is adaptable to a
is acceptable risk? That means how much context it might be fair to say that the wide range of other uses, such as remotely
risk is society willing to take in order to North Sea is one of the safest continental operated vehicle operations and oil spill
harvest such benefits and, in even more shelves with respect to oil & gas activities. recovery.
practical terms: How safe is safe enough? Accident statistics indicate this to be true,
rbeck-Nilssen says that to answer rbeck-Nilssen says.
Photo: DNV/Magne A. Re
Given that further exploration in the Arctic will take place, DNV believes that the industry can develop ways to safely explore the Arctic region provided some guiding
principles are followed.
Deal with barriers for a holistic risk management approach standards and foster transparency of data
Complex systems fail in complex ways is which covers all relevant risk areas, from and knowledge. Further, the exploration
a clear conclusion after the 2010 Macondo environmental risks to financial and politi- should be stepwise, starting with the areas
disaster in the Gulf of Mexico. Here, many cal risks, he explains. comparable to the best-performing conti-
barriers didnt work as intended. nental shelves and then later moving into
According to rbeck-Nilssen that is why Can it be done safely? even more challenging areas. And finally,
a complex and comprehensive risk man- Given that further exploration in the Arc- any activity should follow a risk-based
agement approach needs to be applied to tic will take place, DNV believes that the approach. And all the risk elements should
control the risks. industry can develop ways to safely explore be included in order for the risk picture
Offshore oil & gas operations are the Arctic region provided some guiding to be holistic and manageable, concludes
complex and this complexity in itself rep- principles are followed. Knut rbeck-Nilssen.
resents a significant risk that needs to be It will be necessary with an extensive
managed. This makes it even more critical collaboration between stakeholders in
to have robust risk management covering order to share experience, develop tech- Read more about Arctic risks here:
all risk areas. The Arctic risk reality calls nical solutions, harmonise regulatory www.dnv.com/arctic
DNV-led joint industry project (JIP), ICES- the design of offshore floating structures
TRUCT, has since 2009 worked to develop in ice.
a designer-friendly and reliable framework The advantage of the new framework is
based on the ISO 19906 Arctic Offshore that the same design practice can be used
Structure standard. irrespective of the type of structure and
Per Olav Moslet, Arctic technology environment Arctic or open sea. That
research programme director at DNV said, the nature and variability of the ice
explains that The governing design loads and its complex interaction with structures
for offshore structures in Arctic areas need to be taken into account, Moslet
are usually based on interaction with ice, says.
and it is very important that these loads The JIP received wide industry support
and their effects are treated consistently. and sponsorship from oil companies, yards
Due to the lack of a common industry and engineering companies, including
Photo: DNV
approach for floating structures in ice, it Transocean, Shell, Statoil, ENI, Repsol,
has previously been difficult for designers SBM Offshore, Daewoo Shipbuilding
to establish the appropriate design loads Per Olav Moslet, Arctic technology research and Marine Engineering, Hyundai Heavy
effects. programme director at DNV Industries, Multiconsult, Keppel Offshore
Because of its nature, ice can gener- and Marine, Marin, Huisman Equipment
ate considerable loads, and structures and Dr. techn. Olav Olsen. In addition,
designed for Arctic operations may look This JIP developed a methodology valuable work-in-kind contribution has
different to structures in open seas. How- for determining ice load effects. Rather been provided by several key international
ever, ice loads and associated load effects than having a specific custom-made universities and companies such as Pro-
should be treated in the same way as any Arctic design practice for ice loads, the fessor Ove T. Gudmestad, Professor Karl
other environmental load when designing methodology developed is consistent with Shkhinek, Aker Arctic and the Hamburg
a structure since, in principle, an Arctic existing methods for determining other Ship Model Basin (HSVA). The project
offshore structure is no different from any environmental load effects. Consequently, ended in December 2012.
other offshore structure when it comes to the existing offshore design practice that
assessing adequate structural strength, he has been used for several decades in the
says. North Sea and elsewhere can be used for
presence
their business performance.
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