The most important task for us is to combine the best of both the shipping and offshore worlds. The combination of floating production and offshore loading is especially relevant, since this contains important elements from both sectors,’ says Brit Rugland, CEO of Norwegian shipowner Navion.
Besides its main activities, which are offshore loading and floating production systems, Navion also operates a large fleet of conventional ships and two FPSOs one in the South China Sea and one in the U.K. sector of the North Sea. Following a period of stagnation in the shipping market, Rugland feels there is now growing activity and optimism. Though were optimistic about the future, we understand that it will take a long time for activity to reach the level wed like. With the Asian crisis and the subsequent fall in oil prices, most oil-sector operations came to a standstill. But activities in Houston are on the increase and projects in West Africa, Brazil, the Gulf of Mexico and the east coast of Canada are exciting because they incorporate elements that we know a lot about extreme conditions, she says.
In deeper waters
As regards future deepwater developments, we expect that between 50-60% of these will be carried out using floating production. The main challenge involved in such projects is how to get the oil to the customer if it is not going to be used in the region where it is extracted. Floating production solutions are very advantageous when one is a long way away from existing infrastructures. As finds are gradually made in deeper waters and further away from existing installations, the interest in FPSOs will increase and new offshore loading opportunities will arise. The most effective method is to have a specially built ship collect the cargo stored on the FPSO and bring it directly to the customer.
We use dynamically positioned ships to do this an interesting alternative for the oil companies, she points out. Now that oil is gradually being drilled for in more inaccessible places, Navion has noticed a growing interest in its concept that involves using fewer risers.
Tailor-made for the site
Unconventional oil fields require new solutions. Navion can provide the entire or individual parts of the solution chain depending on the customers requirements. Rugland explains, Our products are often at their best in deep waters or under difficult climatic and geographical conditions. The North
Sea, Gulf of Mexico and South China Sea all have geographic and climatic extremes, and our goal is to have products that are optimal for the area in which they are to operate - based on standard components. The competition in this market is extremely stiff, but our strength lies in the fact that our products comply with our customers specific requirements.
Our solutions are often on the borderline between the offshore and shipping sectors. For example, if subsea processing becomes a reality in the future, the offshore industry may accept that FPSOs can be built and operated to ship-classification standards instead of offshore standards.
Coordination with DNV
Rugland believes that DNVs assistance - part of a framework agreement with Navion - helps Navion to help itself. Since Navion has a high level of expertise to begin with, it turns to an external supplier, such as DNV, in order to gain additional expertise.
This becomes clear when we work in areas that do not clearly come under either the shipping or offshore sectors. We believe that DNVs expertise in the traditional shipping market, and its knowledge of the offshore market, are of great help when were working on the borderline between the two. DNVs knowledge can be used to find the most appropriate and long-lasting solutions, which means that we can operate efficiently in both markets.
Large bulk carriers and tankers normally make six voyages a year Navions ships average more than 50. Says Rugland, We have gained unique experience of how a ship behaves in difficult conditions, and this has helped in equipping our offshore loaders and FPSOs. Our key to success is a respect for the complexity of our industry, and an understanding of the demands it puts on us.
Date: 2000-02-15