Offshore Oil Exploration & Transportation Logistics

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1 SNAME Greek Section Athens, Greece 24 November 2011 Offshore Oil Exploration & Transportation Logistics Luiz Motta Director, Technology & Business Development, Europe ABS 1

2 Outline Oil world demand and supply Brazil offshore oilfield potential Shuttle tankers Rules and regulations, class notations Dynamic positioning systems Cargo loading and unloading systems Operational requirements Conclusion 2

3 World Oil Demand & Supply Source: Petrobras 3

4 Brazilian Economic Drivers Brazil to overtake UK as 6th largest world economy Economic growth 7.3% in 2010 Estimated GDP 2.44 trillion USD in 2011 Oil and gas exploration will boost economy and will provide needed energy to sustain the country development Commercial trade with China increased 10 folds last decade 4

5 Brazil Offshore Exploration Current Petrobras oil reserves 15 billions barrels Recoverable reserves could be up to 35 billions barrels by 2015 Basins Espirito Santo, Campos and Santos 80% of oil production transported by Shuttle Tankers 5

6 Pre-salt Deepwater Exploration Petrobras is capitalizing on past experience with deepwater exploration Goal daily production above a million barrels of oil in the pre-salt areas by

7 Oil Production: Brazil million barrels per day in August million barrels per day by

8 Petrobras Transportation: Transpetro Transpetro s current fleet contains 10 shuttle tankers Projection 50 vessels by 2020 Table: PETROBRAS owned and time chartered shuttle tankers fleet Ship Year Built DWT Type DPS Cartola ,980 Oil Carrier 1 Ataulfo Alves ,980 Oil Carrier 1 Stena Spirit ,922 Oil Carrier 1 Nordic Spirit ,293 Oil Carrier 1 Nordic Rio ,244 Oil Carrier 1 Nordic Brasilia ,244 Oil Carrier 1 Navion Stavanger ,729 Oil Carrier 2 Navion Bergen ,641 Oil Carrier 1 Navion Gothenburg ,244 Oil Carrier 1 Fortaleza Knutsen ,316 Oil Carrier 2 8

9 Transpetro: Fleet Renewal Program PROMEF 1-23 Vessels Estaleiro Atlântico Sul (PE): Estaleiro Atlântico Sul (PE): Estaleiro Ilha S.A. (Eisa) (RJ): Estaleiro Mauá (RJ): PROMEF 2-26 Vessels Estaleiro Atlântico Sul (PE): Estaleiro Atlântico Sul (PE): Estaleiro Promar (PE): Estaleiro Superpesa (RJ): 10 Suezmax 5 Aframax 4 Panamax 4 Product Ships 4 Suezmax (DPS ST) 5 Aframax (DPS ST) 8 Gas ships 3 Bunker ships 9

10 Contract of Chartered Vessels Suezmax Spot Rate vs. 3-year TC Rate 140,000 US$/Day 120, ,000 80,000 60,000 40,000 20,000 0 Source: Clarkson 10 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Spot 3-year TC (Modern)

11 Shuttle Tankers: Description Conventional tanker configuration Cargo loading and unloading systems Dynamic positioning system Controllable pitch propeller, flap rudders, twin propeller or diesel-electric propulsion Helicopter landing pad 11

12 Rules & Regulations Class Societies Rules Common Structural Rules for Tankers International Statutory Requirements Flag and Coastal Authorities (NORMAM 01 DPC) Petrobras Basic Requirements for Shuttle Tankers Guidelines for the Design and Operation of Dynamically Positioned Vessels (IMCA International Marine Contractors Association) OCIMF (Oil Companies International Marine Forum) Guidelines and other offshore industry standards 12

13 Shuttle Tanker Class Notations ABS Class Notations A1, (E), Oil Carrier, CSR, AB-CM, CPS, ESP, AMS, ACCU, DPS-2, BWE, BWT+, ENVIRO+, POT, VEC, CPP, BLU, PMA, SPM, UWILD, R2, CMS, PMS, NBL, NIBS, CRC, HAB+, TCM, RCM, HIMP Mandatory and Optional 13

14 Dynamic Positioning Systems DPS-0 centralized remote manual controls DPS-1 automatic and standby manual controls DPS-2 fully redundant automatic controls DPS-3 fully redundant automatic controls with emergency automatic control Thrusters sized by designer to meet holding requirement System selection dictated by level of risk of failure from FMEA Source: ABS Steel Vessel Rules 4-3-5/15 14

15 Failure Modes & Effects Analysis Required full redundancy Systematic process whereby failures occurring at a component or sub-system level are identified and their effect at the system level is determined Two stages of FMEA Design Trials witnessed and surveyed annually to remain in class Input for FMEA is also provided by the system manufacturer Consequence analyzer provided by manufacturer 15

16 Holding Capability Plot Provided by the manufacturer 16

17 Dynamic Positioning System 17

18 DPS-2 Consoles & Controllers 18

19 Cargo Loading & Unloading Systems Shuttle tankers can moor alongside the FPSO/FSO and use mid-ship manifolds in benign environments Most adopt loading via the bow Submerged turret Submerged buoy FPSO/FSO trailing pipe FPSO/FSO derrick assisted Seabed mooring and cargo loading All above require the ship to have dynamic positioning Single point moorings do not (CALM, SALM) this is the most common solution adopted 19

20 Bow Loading Hawser connection Hydraulic claws for connection Courtesy: Advanced Production and Loading AS BLS Coupler Valve 20

21 Typical Bow Loading Configuration View on center-line at bow 21

22 FPSO Trailing Pipe Source: Advanced Production and Loading AS 22

23 Operational Requirements Petrobras technical specification Basic Requirements for Dynamically Positioned Shuttle Tankers Shuttle tanker offloading operation should not take more than 36 hours Frequency at least once a week and not less than 50 loading operations per year 23

24 Operational Requirements 24

25 Operational Requirements 25

26 Operational Requirements 26

27 Operational Requirements Alert state 1: wind reaches velocity of 40 knots. FPSO shall be ready to stop offloading operation. Alert state 2: wind reaches velocity of 45 knots. DPST Captain has to initiate the first stage of the OESD I Alert state 3: wind reaches velocity of 50 knots. DPST has to execute an immediate OESD II DPST: Dynamic Positioning Shuttle Tanker OESD: Offloading Emergency Shutdown Class I or II 27

28 Operational Requirements POSITION REFERENCE SYTEMS: DARPS (satellite) ARTEMIS (radar) FANBEAM (laser) 28

29 Conclusion High price of oil stimulates production offshore PROMEF programs will keep the Brazilian shipyards busy in the next 10 years Increase of offshore oil production will increase demand for shuttle tankers Petrobras is currently increasing their fleet of chartered shuttle tankers and some of the vessels are currently being built by Asian shipyards 29

30 30

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