island observer - Island Offshore

3/2014
ISL AND OBSERVER
Newsletter for Island Offshore employees
Island Performer
The Island Performer has become
quite a majestic beauty where
she lies, with her full length of
130 meters and a width of 25
meters. The vessel is equipped
for a wide scope of subsea work,
whereof Riserless Light Well
Intervention (RLWI) will be the
main activity. A large module
handling tower is placed over the
8 by 8 meter moonpool, and she
can perform operations at depths
down to 3,000 meters. I addition
the vessel has a 250 ton offshore
crane and carries two deep-sea
work ROV’s. Island Performer also
carries the highest class of dynamic
positioning, DP3. The helideck is
placed closer to the mid part of the
vessel, where movements are at
Capt. Svein Ole Sæter
the lowest, in order to increase the
weather window for crew change
by helicopter. The vessel has a
crew capacity of 130, and in case
of evacuation, each of the lifeboats
on the starboard and port sides can
accommodate everyone on board.
Christening
Island Performer sailed from Hareid
to Geiranger with about 180 invited
guests and crew on Friday 27 June,
where she was given her name
under the waterfall “The seven sisters”. Mrs. Pamela Marie Williams,
the wife of Warner Williams from
Chevron, was the godmother. After
the ceremony, Island Performer
brought the guests to Geiranger
Godmother Pamela
where the gala dinner took place.
The Norwegian entertainers Heine
Totland and Gisle Børge Styve were
toastmasters for the night, and
entertained the guests through the
dinner, between speeches and gift
presentations.
Click the link to see the project film made by the yard:
https://www.youtube.com/
watch?v=I9YGFm2AzTo
Gary and Carolyn Chouest
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Continued on page 2
Continuation from page 1:
Rogfast
Island Performer will be working
on this side of the Atlantic until
year end. The first two jobs will
be crane and ROV work which will
be a good warm-up job for the
new vessel prior to commencement of the Rogfast project.
In August Island Performer is
to start a specialized project for
Statens Vegvesen (Directorate of
Public Roads), in connection with
the construction of the world’s
longest (25,5km) and deepest
(-385m) subsea road tunnel, also
called Rogfast (Rogaland Mainland Connection). The tunnel will
have four traffic lanes in addition
to an arm up to Kvitsøy. The
Island Performer will be taking
core samples from the seabed
and the formations below in order
to obtain detailed information
about the geological conditions of
the tunnel route. Four wells are
to be drilled, and the objective
is to take out 440 meters of core
samples.
Contracting such a vessel to
a road entrepreneur is rather
unusual. However this project
offers an opportunity to qualify
and test new technology and
equipment that can contribute to
a significant
development
of the LWI
service,
and other
operations
that can
benefit
from
open
water
coil
tubing technology. A success in the
Boknafjord thus gives possibilities far beyond road construction
in the North Sea basin.
The most pioneering aspect of
this project is the employment
of a subsea injector that will
feed the coil tube down through
the formation. A second injector
will be installed on the vessel to
keep the coiled tube between the
subsea injector and the vessel
in tension. The power supply for
the subsea injector will come
from an ROV and the operation
of the subsea injector will be
through the ROV umbilical.
Using directional drilling from
an offshore vessel instead of
directional drilling from the shore
side is an innovative approach,
and it is the first time it has been
done
in Norway.
With short wells of
up to 400 meters, it is required
to build high angles in the well
over a very short distance (up
to 15 degrees per 30 meter
drilled well). This is where coiled
tubing drilling has significant
advantages over conventional
rotary drilling. Once the first
section of the well is drilled
(building the angle) the core
sampling operation can start.
By year end the vessel will
head to the Gulf of Mexico to
commence the contract with
FTO, a joint venture between
FMC Technologies, Island
Offshore and Edison Chouest
Offshore.
New employees since January 2014:
Maria Ulstein
Hanne Birthe Ulstein
John Ragnar Reite
Heidi Heimland
Maria T. Valderhaug
Purchaser
Purchaser
Shipmanager
Payroll Controller
Crew Coordinator
(temp.)
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We need to position ourselves
BY HALLGEIR LINGE REITAN • CHARTERING MANAGER ISLAND OFFSHORE
The market fundamentals for the
offshore activity in the North Sea
remains strong however at present the North Sea spot market
is characterized by oversupply of
vessels in most segments, despite
that several vessels has commenced seasonal work in other
markets. For Island Offshore we
have had a very busy 1st and 2nd
quarter where we secured several
long and medium terms contracts
both within and outside the North
Sea. This has proven to be a good
strategy. However a few of these
vessels will soon be released from
their present charters and are
uncommitted through the winter
months. The main focus for the
Chartering department going
forward is therefore to secure
work for the spot/ project vessels
through the winter and position
this tonnage for upcoming long
term contracts and project work
with quality clients.
In a challenging market the
reputation of the company and
the individual vessels and crews
play a key role in the company’s
success. Therefore it is extremely
encouraging to receive client
feedback confirming dedicated,
service minded and highly competent crews. You should all be
proud of such feedback.
At present our fleet totals 26
vessels in operation with another
7 vessels under construction.
Significant growth is not an
unusual scenario in the Island
Offshore history, however as we
grow in size and complexity we
must continue to market vessels outside the North Sea where
our competence and know-how
is sought-after. From the 2nd
quarter this year we have been
engaged in projects in Morocco,
Liberia and Côte de Ivoire and to
our appreciation we have received
only positive feedback from our
ambassadors on board. It is our
understanding that many seafarers appreciate the opportunity to
see other parts of the world. For
the future of Island Offshore it is
important to build relations and
long term commitments outside
the North Sea.
Vestbris training center- an update
During the last quarter we have had 115 seamen attending different courses at Vestbris. In addition we have run
courses for office employees.
The Rolls-Royce UT-design is turning 40 years this year. In this
connection they have launched
a PR campaign with activities on
their website, on Facebook, ads
in trade magazines and big posters in airports etc. Earlier this
spring they went on board the
Island Valiant and Stian Tollås
was chosen as the ”interviewee”.
The result is a great video with
shots from several of our vessels. For the time being you can
see major posters of Stian outside and inside Ålesund Airport
Vigra.
For those of you who have not
seen the movie, please click the
link: http://utstories.rolls-royce.
com/?ico=marine&icc=ut40
The courses held this quarter have been the following:
Autoload course, well intervention
course, G5 repetition course, TM
maintenance management program, control and maintenance of
wire, MARIS ECDIS 900 familiarization, TECDIS user training.
The simulators have not been in
use lately due to a comprehensive update of the software and
the hardware. This has been done
by our supplier Offshore Simulator Centre. The update is mostly
complete by now, and testing of
the equipment is required before
new courses can be arranged.
In addition summer vacation is
now approaching and we will
therefore not be up and running
until after the summer break.
We hope that new equipment
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is in place when the fall comes,
including bridge solution in the
DP simulator, but MT has not
been able to give us a firm date
on the delivery of this equipment.
A new giant is on its way
Island Offshore has signed a
contract with Vard Brevik for
the construction of a large Deep
Water Installation Vessel (DWIV)
designed by Rolls-Royce. This
will be a multipurpose vessel
with a wide range of applications,
including deep water anchor handling and subsea installation.
The new building will be named
Island Victory and will be
equipped with a 250 tons offshore crane, two ROV’s and a
large moon pool, enabling it
to perform deep water subsea
installation work. With a bollard pull in excess of 400 tons
the vessel is fit for heavy anchor
handling duties.
“This will be a stocky and highly
versatile vessel. Island Victory
will actually have a bollard pull
of 280 tonnes just by means of
diesel electric propulsion. One
can compare it to Island Vanguard or Island Valiant on steroids,” said Håvard Ulstein in the
press release issued in May.
With a breadth of about 25
meters and a length of about 123
meters Island Victory will have
a deck capacity of 1100 square
meters. Thus the vessel will be
able to load complete anchor
sets on deck which will make it
ideal for prelaying activities.
With POB of 110 persons the
vessel is also suitable for accommodation services offshore.
Island Endeavour –
Contract extension
We are pleased to announce
that Peterson Den Helder B.V
has declared another year with
Island Endeavour making her
firm until end of August 2015.
The Island Endeavour has
successfully performed pool
support duties for the SNS
Pool under the contract with
Peterson Den Helder B. V since
2008.
The Island Innovator photographed at midnight earlier in June. The photographer
is Håkon Osnes who says it is not too bad to be in the Barents Sea when it is black
calm and daylight day and night. The deck lights are hardly on at this time of year.
4
Island Dragon christened and delivered
19 June Island Offshore took delivery of M/V Island Dragon from Vard Brevik. This is the
fourth vessel in this series delivered from the same yard in under a year, and two more
are yet to come.
Island Dragon is of UT 717
CD design, the same as Duke,
Duchess and Dawn, and is equipped for firefighting as well as
standby rescue duties.
In the press release issued in
connection with the delivery,
Håvard Ulstein said: “It is very
seldom that we take delivery
of a vessel this complete and
all ready as Island Dragon. She
is a magnificent specimen of a
vessel, and the yard and our
crew shall be credited for getting
her in such great shape before
delivery. We are proud to present Island Dragon, and we are
confident that the customer will
receive a vessel they are satisfied with.
Island Dragon is on contract with
Lundin Norway for operation in
the Edvard Grieg field, more specifically 12 wells in total, starting
Jesper Brøndum Rasmussen showed
this fall. Lundin Norway also has
Island Innovator on contract, and
the two gas powered platform
supply vessels Island Contender
(UT 776 CDG) and Island Crusader (UT 776 CDG) to support the
rig.
Open ship
18 June we arranged “Open ship”
together with the yard, and more
than 500 visitors were served
food and refreshments in the
nice summer weather while waiting for a tour on board the ship.
With so many guests we had to
take the tours in groups, and
our crew took care of the visitors
in an excellent way. We all felt
proud to work for Island Offshore
that day! There were activities
for children as well, and lots of
big-eyed kids went on board
looking for the dragon which was
hidden in the vessel’s gym.
Christening
21 June was the big day for the
name giving ceremony in Brevik,
and Siri Nyhaug was appointed
godmother. Siri is married to
the COO in Lundin Norway, and
she did a splendid job. After the
christening at the yard, Island
Dragon took the guest to Kragerø
Resort for a gala dinner where
toast master Jon Almaas and
singer Venke Knutson made sure
the guests had a good time.
Island Dragon sailing to Kragerø with all the guests on board.
people around in the engine room.
5
Gyro Gearloose meets
ConocoPhillips
A general presentation of different down hole technology ideas turned out to become the start of an incredible
development project for Leif Hoemsnes and his team in
Stavanger. ConocoPhillips saw the potential in them and
presented a challenge they could not turn down, and Agat
Technology AS was born.
After being presented to Max
PERF amongst other possible
technologies, the oil company
presented a challenge they had
met in connection with perforating a thick-walled casing which
they use in the Ekofisk oilfield.
They asked the Island Offshore
Subsea team to look at the
possibility of engineering and
building a drilling machine that
satisfied their demands.
“This seemed to be a very
demanding project, but after
several discussions with the team
we decided to present ConocoPhillips with a project proposal
of what today is called “Perforation Drilling Tool PDT)”, says
Leif Hoemsnes who manage the
project in Stavanger.
Agat Technology AS was established with IOSS as the majority
shareholder, and an agreement
was made that ConocoPhillips
would pay for parts needed from
external suppliers and IOSS
would cover the hours spent
on developing the product.
The project has also received
funding from Skattefunn, an
organization funding research
and development projects in
the industry.
Starting from scratch
The development work has been
done at IOSS in Stavanger, while
the machining of the prototype
has been made locally in the
area. Components of the tool
have been bought in Norway,
USA, England, Sweden and
Denmark, all from well-known
suppliers within down hole tooling industry.
“We have spent about a year
so far developing the tool, and
today we have a functioning prototype. A lot of testing remains
but the goal is to have a commercial tool ready for the market
by the end of the year, says Leif.
The tool is a “wire-line tool”
which will be run down the
From left: Project Manager Electro Peder Pedersen, Project Manager Mechanical Are
Sandkleiva and Operator Saman Sarbaz in the workshop at IOSS in Stavanger.
6
The fi
rst dr
ill tes
t.
existing production/injection
wells and drill holes in casings to
obtain communication with the
formation. The tool will be able
to drill up to 100 holes in the
casing with the same drill, without pulling the tool out of the
well. ConocoPhillips needs holes
with a diameter of 5mm, and in
some wells they need hundreds
of holes. The tool will also be
used in other settings and for
different needs with different size
of drills. Leif says that they have
applied for a patent on several of
the components in the tool.
Everything is working
“The most positive moment of
the project so far was when we
could see all functions working
as planned after assembling the
prototype, and we have repeatedly drilled holes in several types
of casing. Electronics, hydraulics
and mechanics are working as it
should, but we keep finding functions that need improvement. I
guess it is rather normal when
developing and building prototypes, and it is after all the main
purpose of the testing,” says a
rather humble inventor.
The people involved in the development project are mainly the
two project managers Peder Pedersen and Are Sandkleiva. Peder
is in charge of the electronics while Are takes care of the
mechanical part, and together
they produce all necessary data
for production, assembly and
testing.
“Are and Peder are also performing the current physical testing
in progress, and we have just
included Saman Sarbaz in the
team to help with the testing.
Later on he will be operating the
tool in the field,” says Leif.
delivery time. We still expect to
have a commercial tool ready by
the end of the year.”
“The market has already shown
great interest for the tool; both
Norwegian and Canadian companies, and we will most likely
cooperate with an international
wire-line company for easier
access to the market. The potential for the tool is big, but I don’t
want to quantify it any further for
the time being,” says Leif.
Commercial potential
This is the only wire-line tool in
the market that can drill an accurate hole in a casing in the exact
size specified by the customer.
The safety by use of the tool is
also better than today’s technology.
“The biggest challenge as I see
it is that everything has taken
more time than expected. As a
small company we don’t always
get first priority by suppliers thus
a lot of components have a long
“We have presented the project
for several companies and it has
been very well received. The
great advantage is that ConocoPhillips is ready to use the
tool as soon as it is tested and
I addition, Vidar Haugen has
joined the team as a project
manager towards ConocoPhillips.
EN
TH
US
SM
IA
It is time to launch a new photo
competition, and this time we
have chosen a topic based on our
values, namely: ENTHUSIASM!
This is how Island Offshore defines enthusiasm:
We are committed and passionate about what we do and
strongly motivated to deliver
what the customer wants.
The best photos will be awarded
as follows:
1. Prize: Photo equipment worth
NOK 5.000,- (optional dealer)
2. Prize: Photo equipment worth
NOK 3.000,- (optional dealer)
approved. A positive start with
ConocoPhillips would give us the
best marketing we could wish
for!”
“Total cost of the project is about
10 million NOK, and the selling
price will be influenced by the
market price for similar technology. We expect good earnings on
the product,” Leif concludes.
The tool will be presented and
exhibited at the ONS- trade show
in Stavanger in August.
Drilling throug thick-walled casings as
will be the case at Ekofisk.
3. Prize: Photo equipment worth
NOK 1.000,- (optional dealer)
Change of company
name
We will announce the winner in
the Christmas edition of Island
Observer, so please send your
photo/photos to: [email protected] within
the END OF OCTOBER!
The general meeting in Marine
Accurate Well ASA (Maracc) decided 10th of June 2014 to change
the name of the company. The
new name effective from Friday
20th of June 2014 will be Island
Drilling Company ASA, with their
new logo, presented below.
Please note: We prefer the pictures to be as natural as possible
with little or no touch up. Please
make sure that the image has
print quality with at least 300
dpi, and a file size of no less
than 1Mb. In the last round we
received a lot of pictures with
very low resolution, many with
frames and they had been a bit
too eager when adjusting the
colors. This makes it hard for us
to use the pictures in calendars,
presentations and such.
Members of the jury will be Marianne Hovden, Jan Rise and Svein
Idar Ulstein.
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Addresses, and organization
number will be the same (org.
No.989 734 229 MVA).
As part of the name changing
process Island Drilling also present their new logo, based on the
Island Offshore profile.
Finance Update
BY TOMMY WALAUNET• DEPUTY MANAGING DIRECTOR ISLAND OFFSHORE
In Q1 2014 the fleet comprises
25 vessels in operation including the Island Dawn which was
added to the fleet in January
2014. Island Pioneer was sold
in January 2014. On the 20th
June the Island Dragon was
also added to the fleet. The new
building program includes 6 additional vessels to be delivered in
2014, 2015 and 2016.
Further, an SBC has been signed
with Kawasaki Heavy Industries
for delivery of the Top Hole Drilling vessel Island Navigator in
March 2017. The contract is subject to financing and the negotiations are ongoing.
In May Island Offshore announced the order of a large installationvessel with RRM design
UT 797 CX. This vessel will be
another flagship with significant
deep water anchor handling and
subsea installation capacity.
Revenue in Q1 2014 totals NOK
667 mill including a gain of NOK
173 mill from the sale of Island
Pioneer. Fleet utilization is lower
than expected at 85% due to an
extended yard stay for Island
Frontier and a weaker than
expected spot market through
the winter months. Overall, utilization for the LWI fleet was lower
than expected due to the yard
stay and significant idle time for
Island Constructor.
Our exposure to the spot market
was reduced in Q1 with the
award of term contracts to Island
Duke, Island Duchess and Island
Dawn, where the first two vessels will work in West Africa for a
period up to 200 days.
EBITDA totals NOK 371 mill in Q1
2014 and is significantly higher
than the same quarter last year
due primarily to the abovementioned sales gain. Adjusted for
the gain the result is lower than
expected thus it has been a challenging start to 2014.
In April 2014 we completed a
NOK 200 mill tap bond issue. The
proceeds will be used to finance
the investment program and
strengthen the overall financial
position of the Group. The financing program for vessels under
construction is progressing as
planned.
Island Offshore has secured
several term contracts for the
PSVs and SCVs in 2014, both in
Norway and West-Africa.
The 2014 contract coverage is
currently approximately 80%. We
continue with an overall positive
outlook to the market despite a
weak spot market.
The order backlog excluding
charterer’s options totals NOK
9.4 billion at 31.3.2014, which
is more than 4 times estimated
2014 revenue.
ONS 2014 in Stavanger
As in previous years Island Offshore will have a booth at the
Offshore North Sea (ONS) exhibition in Stavanger 25-28 August.
The Subsea team from Stavanger and the technical team
from Ulsteinvik will be present
to answer questions from customers and potential clients.
We have doubled the booth size
since last ONS and hope to be
a bit more visible this year. A
model of Island Navigator is
ready, and we will present the
prototype of the newly developed
tool (see article in Newsletter).
In addition we will build a cut
through version of the Island
Navigator module handling tower
to show what happens inside the
built-in tower.
We will also be available at
the “Job and education zone”,
a meeting place where young
people can get in touch with the
8
industry and for us to find the
right people.
Anti-corruption
policy
BY TOMMY WALAUNET
In October 2013 we updated
our Anti-Corruption and Bribery
policy in Unisea. In many countries corruption is a significant
obstacle to social and economic development, especially in
poor countries with a vulnerable
population and weak systems to
prevent, monitor and criminalize
corruption. In practice it can be
difficult to distinguish between
corruption and common business relations. The rules and
regulations in Norway have been
tightened significantly in recent
years and the criminal penalties
accordingly.
Corruption is commonly defined
as receiving or accepting an
offer for an excessive or undue
advantage in connection with a
position, duty or task. Common
corruption issues in shipping
include facilitation and commission payments. Careful attention
should be paid to giving or receiving gifts and/or contributions
that can compromise the integrity of the recipient or serve to
influence a business decision.
Island Offshore is fully committed to comply with Norwegian
law, international conventions
and recommendations contributing to increase awareness of
and prevent corruption activities.
This is supported by our core
values and business objectives.
Our employees are committed to
comply with this value statement
and the ethical guidelines that
underpin our business.
We have a zero tolerance policy
on corruption and breaches of
this policy will imply disciplinary
actions for our staff. Our leaders
shall be aware of and understand
our business exposure to corruption and bribery and we are committed to increasing awareness
and knowledge of such irregularities among our employees.
Any potential violations identified
and other observations made can
be directed on an anonymous
basis to the Company’s Designated Person.
QHSE
Overall status of QHSE objectives is good. The trend is positive
for all measurement parameters.
However we have had a serious
incident involving falling objects.
When working in the tower area
a Wepco anchor fell down. It had
the potential to kill people working
in the tower area. This reminds us
that we constantly need to assess
risk with the work we perform.
Sickness absence offshore this
year is in excess of 4%. We need
to maintain focus on sick leave in
order to reduce it to a minimum.
There are no loss time incidents
last quarter. Island Challenger,
Island Captain and Island Crusader have now passed two years
without LTI . Congratulations!
Average CO2 emissions last year
were reduced by a total of 9%
compared with the same period
a year earlier. In the past few
months we have obtained data
to analyze oil consumption, and
generation of sludge and slop.
This is done to investigate the
benefits of replacing separators
with filters. In the next stage we
will take a closer look at the use
of detergent to find if there is
some correlation with detergents
and emulsion in the slop.
Nonconformities from the authority audits show a positive trend
but we are still above the target
of two per audit. Last quarterwe
had seven such audits and recorded a total of 16 NC’s. Many of
these NC’s are formalities that we
should be able to control.
9
The level of proactive reporting
has improved from the first to the
second quarter. We now have a
ratio of 79/21 between proactive
and reactive reports. Goals for
this year is 90% proactive. We
also see an improvement in the
number of observations recorded.
In this connection we want to
highlight Island Chieftain which
so far this year has four times as
many observations compared to
last year. Job well done!
If you have a good story or a nice picture of the life on board,
please send it to: [email protected]