reducing out of service time through partnership & innovation · multi month quayside outages...

Reducing Out of Service Time Through Partnership & Innovation

18th Feb 2016

Dubai, UAE

Company Confidential | IADC Arabian Chapter | Feb 2016 Company Confidential

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• Speaker & Company Profile

• The World of $30 Oil

• In-Service Maintenance & Reduced OOS Time

Spud Can UWILD

Cleardrop Cover

Leg Rack Tooth Repair

Dive Repair

Boroscope of Sea Chest

• Partnership, Collaboration & Risk Management

• The Future

Agenda


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Who Are Allrig?


Niche Services & A Global Footprint Under One Roof

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• Jacking • Skidding • Cranes

• Gulf of Mexico

• Gulf of Mexico

• Gulf of Mexico • Middle East

• Gulf of Mexico • Middle East • North Sea • Asia Pac

• Shallow Water

• Shallow Water • Mid Water • Deep Water

• Shallow Water • Mid Water • Deep Water • Ultradeep

• Shallow Water • Shallow Water

Reg

ion

s P

rod

uct

s &

Ser

vice

s D

epth

s

• Jacking • Skidding • Cranes • Drilling

• Jacking • Skidding • Cranes • Drilling • Projects • Quayside • Anchor winches

• Jacking • Skidding • Cranes • Drilling • Projects • Quayside • Anchor winches • Derricks • Rope Access • Drillpipe

• Jacking • Skidding • Cranes • Drilling

(JUN 2006)

(SEP 2013)

(JUN 2014)

(JUN 2015)

• Gulf of Mexico • Middle East • North Sea • Asia Pac • Brazil • West Africa


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Mark Hannigan, CEO Allrig

• Age – 43 Years

• Nationality – British

• Based in Allrig HQ Houston, Tx

• Bachelor Mechanical Engineering – University of West of Scotland

• Master of Business Administration – University of Strathclyde

• Member - Institution of Mechanical Engineers

Previous roles…

• President: S&N Pump – Houston, Tx

• Managing Director: Clydeunion Pumps – Glasgow, UK

• Supply Chain Director: Weir Pumps – Glasgow, UK

Speaker Profile


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18 Months Is A long Time in Business

Jun 2014 Jan 2016 Delta

WTI/BBL $124 $29 -77%

Avg Jack Up Day Rate $155k/Day $95k/Day -39%

Avg DW Day Rate $450k/day $260k/day -42%

Avg UDW Day Rate $500k/day $280k/day -44%

Avg fleet Utilisation 87% 66% -24%

Wells Fargo Monthly Offshore Drilling Report Jan 2016


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$30 Oil - A New (Old) World For Offshore Service

Pre Downturn During Downturn

Driller Priority Safety, Build backlog, High grade

fleet, increase competence

Safety Utilisation, Revenue

Efficiency, Cash

Mandatory Periodic Inspections Completed by preferred vendors

Preference for OEM techs

Generous day rates

Fleetwide long term agreements

Fleet agreements re-bid

Day rates pushed down

Alternative vendors tested

Low cost providers considered

Consequent Remediation Completed by preferred vendors

Preference for OEM techs

Complete recommended scope

Leadtime trumps pricing

Critical spares requested

“Use it or lose it” budget mindset

Rig crews complete some repairs

Non OEMs vendors considered

Deferred if not safety critical

Deep vendor discounts requested

Cannibalisation of stacked rigs

Budgets conserved if possible

Major Equipment Upgrades Strategy to high grade fleet

Newer = Better

Capex severely constrained

Working Safely = Good Enough

5 Year SPS and Major Rig

Upgrades

Multi month quayside outages

Major Shipyards preferred

Projects happen on schedule

$20m - $50m budgets

Scope creep common place

Budget & timescale over runs

Maximise in service maintenance

Remain on location if possible

Deferred if not on contract

$5m - $10m if possible

Class required scopes only

Budgets tightly controlled


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Spud Can UWILD During Dry Tow

Scope

Complete cleaning and inspection of spud cans & can

connections to comply with class periodic survey

requirements

Conventional Method 1

Complete cleaning and inspection while rig is

berthed at quayside within a shipyard / port

Conventional Method 2

Take the rig into dry dock and complete cleaning and

inspections

Innovative Method

Provide riding crew of technicians onboard dry tow

transport vessel and conduct cleaning and inspection

during a planned rig relocation transit from West

Coast Africa to Middle East

Client Benefit

No disruption to planned yard scopes to execute UWILD

survey


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Clear Drop Cover Upgrade

Scope

Install protective cover over exposed gears within jacking system to

retain oil bath and prevent mechanical damage, while permitting

access for inspection & maintenance

Conventional Method

Fit mild steel coated cover with gasket and multiple bolts around

perimeter. Cover includes spyglass peep hole for visual inspection

Innovative Method

Design plexiglass replacement cover which meets all corrosion, UV

and mechanical integrity requirements

Client Benefit

Critical gearing interfaces on jacking system can be visually

inspected on an ongoing basis and early signs of damage can be

identified before component failure.

Geartrain can be inspected while jacking system remains online.

No need to remove steel cover, drain oil bath and lose ability to

Jack up or down for relocation or weather emergency.


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Leg Rack Tooth Repair

Scope

Repair damaged leg rack

teeth to class approved standard

Conventional Method

Remove damaged section of

chord and rack and replace during an o

ut of service period

Innovative Method

Rebuild damaged teeth or missing

teeth using proprietary class approved

weld buttering process whilst on

location

Client Benefit

Can be performed during operations

where damaged area is accessible, a

voiding costly unplanned yard visit


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Dive Repair

Scope

Reposition incorrectly retracted anchor and repair damage

to hull caused by this error

Conventional Method

Relocate rig to sheltered waters to allow ballast up to a

stable position, where inspection & repair teams could

Work in a dry environment.

Innovative Method

Divers connected wire rope from top side crane &

repositioned anchor without the need for stopping or

Delaying operations. Damage inspected by dive team

immediately and plan put in place between Allrig, Class

& Client to make immediate repair

Client Benefit

Rig was able to remain on location until next planned

shipyard visit and avoid unplanned quayside stop & loss of

revenue


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Boroscopic Inspections

Scope

Periodic inspection of valves, sea chest valves, sea

chest grating and anodes

Conventional Method

Isolate & remove WTI valves & access sea chest

gratings with a dive team

Innovative Method

Simplified boroscopic method meaning no structural

integrity modifications made to water tight system by

creating access via existing outlets to system

Huge Cost and Time Saving

No loss of operational time, minimise HSE risk and

less personnel needed helping POB.

.

Scope

Periodic Inspection of jacking system

Conventional Method

Disassembly of jacking system and removal of

individual drives to conduct visual inspection

Innovative Method

Inspection performed using boroscope with drive in

situ and access gained through service hatch

Client Benefit

Dramatically reduced time to complete & jacking

system remains on line throughout. Drives only

removed if remediation scope warrants it


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Partnership, Collaboration & Risk Management

The benefits of performing in-service major inspections and maintenance for the drilling contractor can run into

millions of dollars of day rate. However these benefits can only be realised through the formation of trusted

partnerships between operators, drilling contractors & service companies.

• Strategic Alignment : Deeper understanding of fleet condition & client operational and financial goals

• Access to Talent: Subject Matter Experts (SMEs) can be dedicated to finding innovative solution

• Forward planning: Ability to ensure availability of personnel, logistics, visas, POB & equipment

• Compliance: Proactive approach to ensure solution will be acceptable to class surveyors

• Win-Win: Partnership must be economically beneficial to all parties to ensure sustainability

• Value Add: Opportunity for service partner to compliment & optimize Driller’s maintenance tasks

• Measurable: Benefits must be measureable and clear for the bottom line

As MRO budgets reduce, decisions regarding the potential consequences of deferred or reduced major

maintenance should be taken in partnership with experts in order to:

• Risk : Scientifically assess the risk of any deferred or reduced maintenance tasks and assist in the

development of contingency plans and/or additional controls to be applied

• Balance: Ensure maximum savings are achieved whilst minimising and managing safety risk


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The Future is Here: Disruptive Technologies

Drones ROVs Google Glass

reducing out of service time through partnership & innovation · multi month quayside outages...

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