Offshore SIM Report Content6

8/11/2019 Offshore SIM Report Content6

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Asia-Pacific Assessment: Trends and Challenges

for Structural Engineers

An in-depth analysis to identify and address the specific challenges for structural engineer

within the Asia Pacific markets

Jamie Davies

Introduction

Whilst most people would consider the Asia-Pacific offshore oil industry as one of the verge of major

change, how many of us have sat back to take the time to understand the entire landscape? Many of

us will get swept up in the excitement of an ever changing marketplace (and understandably so)

without truly understanding the impacts that these changes are having on our day-to-day roles.

The Structural Integrity Management Analysis will give you the opportunity to understand how your

peers are approaching the challenges faced by structural engineers and whether you are prioritizing

the right areas in your SIM program.

Within the analysis, well assess such areas as:

What projects and technologies are currently being prioritized

How much of a role is monitoring technology playing in maintenance and production

operations

What are the major challenges being faced by structural engineers throughout the region

Whether metocean data is being given the credit it deserves and requires

Where the ISO standards will have the biggest impact throughout the region

Should you have any additional questions regarding the survey or the content, feel free to email

Jamie Davies [email protected].
mailto:[email protected]:[email protected]:[email protected]


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Who did we speak to?

Other

Sales/Business Development/Marketing

Board Member

Department Head

Naval/Marine

Structural analysis

Inspection

Maintenance and Repair

Structural Integrity

How would you describe your role?

26%

32%9%

4%

9%

20%

How would you describe your organization?

Operator

Tier 1 Contractor

Tier 2 ContractorRegulatory

Government

Other

0 10 20 30 40 50 60

Asia-Pacific

Oceania

Europe

Africa

North America

Middle East

Which region are you primarily based in?


3/13

Industry Trends

Q. How much growth would you expect in the following areas?

(5 = High Priority, 1 = Low Priority)

As you can see from the data here, the industry is leaning more and more towards Brownfield

development projects. It would be vastly incorrect to assume that Greenfield developments are

finished, though such projects are certainly taking a back seat.

In terms of Brownfield Development, Life extension strategies and the growth of FPSOs, there is

certainly a shift towards a more commercially-efficient operation. All three areas suggest to us that

operators are not only concerned about lack of opportunities for Greenfield projects, but also that

the profits margins within current operations need to be put under tighter scrutiny.

The data also demonstrates the continued importance of Structural Integrity Management practices

the growth of SIM is not a coincidence when you consider the renewed emphasis on profit margins

and operational efficiency. It should not be considered the industry norm, as if investment is

continued into the older structures and fields in the region, the last fault anyone wants is one in

which the structures end up on the seabed.

1 2 3 4 5

% 0 12.82 25.64 46.15 15.38

0

10

20

30

40

50

Brownfield

Development

1 2 3 4 5

% 2.5 15 30 40 12.5

0

10

20

30

40

50

FPSO's

1 2 3 4 5

% 2.38 14.29 33.3 38.1 11.9

0

10

20

30

40

50

Greenfield

Development

1 2 3 4 5

% 8.11 2.7 40.54 35.14 13.51

0

10

20

30

40

50

Lifetime Extension


4/13

Although it is an area which we have all assumed is growing strongly, here we can see that FPSOs

are certainly a trend for the future. The practically, and cost effectiveness, of having a mobile

production facility, clearly supports the commercially driven objectives of the operators, whilst also

enabling marginalized fields to be harvested in a cost-effective manner.


What is slightly more surprising is the relative reluctance to incorporate new technology for

Improved and Enhanced Oil recovery. Considering the age of the structures in the Asia Pacific

markets, and the cooling off of Greenfield projects, wed assume that IOR and EOR would stake a

much higher claim. The relative laissez-faire attitude to the technologies is somewhat unusual

considering the benefits on offer.

One might question whether this is because the region is more conservative that the rest of the

world weve seen from previous research that the Asia Pacific markets generally follow trends

from the North Sea and Gulf of Mexico. With IOR and EOR technologies gathering steam elsewhere,

maybe this analysis next year will tell a different story.

Q. How much of a roadblock would you consider current legislation for the development of the

offshore oil industry in the Asia-Pacific markets?

1 2 3 4 5

% 0 14.29 57.14 22.86 5.71

0

10

20

30

40

50

60

Improved Oil Recovert

1 2 3 4 5

% 2.86 14.29 37.14 34.29 11.43

0

5

10

15

20

25

30

35

40

Enhanced Oil Recovery

0 5 10 15 20 25 30 35 40

1

2

3

4

5

1 2 3 4 5

% 4.65 0 27.91 37.21 30.23


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This is certainly an interesting question, as we should also ask whether the legislation is the actual

road-block or a lack of legislation is the real reason. The general feeling around the industry here is

that the latter would be more accurate.

Irrelevant of what the true question should actually be, the Asia-Pacific markets are certainly behind

the North Sea. The rigid structure in place for British, Norwegian and Dutch operators enables

creates an effective and comprehensive roadmap for life extension strategies and, ultimately,

decommissioning projects. When you look at examples in the Asia Pacific markets, complications,

like Production Sharing Contracts for instance, disrupt the forward movement of the industry on the

whole.

That said there are forces at work to correct this challenge.

Petronas and The Department of Safety and Health (DOSH) have recently launched the Offshore

Self-Regulation Management System (OSR-MS) to provide a more comprehensive framework for

management of offshore assets in the Malaysia waters. We suspect that this initiative will also feedout to other markets within Asia-Pacific.

The system was developed based on the internally recognized PAS 55 Asset Management Standards

and is in compliance with DOSHs statutory requirements. It ultimately allows the industry to make

sensible and business effective decisions to minimize the risk of major incidents, and reduce HSE

hazards to individuals working in the industry.

Whilst this would still seem short of the standards which are set in place for the North Sea, this is

certainly a very positive step, and one on which a comprehensive and efficient regulatory standard

can be based upon.


6/13

Current Priorities


As you can see from the data above, the shift to brownfield developments is supported by an

increased emphasis on operational efficiency. As with the trend in the growing number of FPSOs,

there is certainly a drive to gain the greatest commercial value out of all major investments made.

Whilst there is a clear benefit to having mobile production facilities, the increased emphasis on

structural integrity management practices also demonstrates the need to drive higher profit margins

on fixed structures also. Decommissioning is an expensive task, the longer a structure can operate in

a safe and efficient manner, the lesser the blow of decommissioning.

1 2 3 4 5

% 0 4.65 18.6 37.21 39.53

0

10

20

30

40

50

How much of a priority would you consider

operational efficiency within yourorganization?

1 2 3 4 5

% 0 11.9 19.05 38.1 30.95

0

10

20

30

40

50

How much of a priority would you consider

structural integrity management within the

Asia-Pacific markets?


7/13


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9/13

Considerations for Structural Engineers

Q. How much of a priority is online/real-time monitoring technologies play in your role?

5 (High Priority) 17.65

4 47.06

3 23.53

2 8.82

1 (Low Priority) 2.94

Interesting enough, online monitoring tools seem to be playing a considerable role within operations

at the moment. Though not as much as in the North Sea or Gulf of Mexico markets, it is certainly

higher than most would have previously assumed.

Throughout our research, one of the biggest themes which seem to be developing throughout theregion is the idea of shifting towards a more proactive SIM IMR strategy. Whilst this could be

considered a pipedream, it will always be the ultimate goal. It will be impossible to entirely remove

the concept of reactionary projects, though more comprehensive monitoring tools can most

certainly improve the turnaround time.

The usage of such technologies seems to be high at the moment seems to be high, though there can

certainly be more effective and efficient management and implication.

Q. How prominent would you consider risk-based inspection strategies in the Asia-Pacific

markets?

5 (Very) 18.18

4 48.48

3 30.30

2 3.03

1 (Low) 0

Q. What would you consider the major roadblock for the implementation of RBI?

Lack of regulatory support

Conflicting standards and codes

Lack of Experience

Too much reliance on Ex-pat workers

Absent data

Lack of understanding of the RBI methodology

Substandard approach to safety

Industry being too process driven

Unwillingness for engineers to make judgment calls


10/13

The use of risk-based inspection strategies is one area which has been under considerable debate in

recent years. Although the regulators in both Malaysia and Indonesia now readily accept the use of

the practice, there has been considerable resistance for operators to demonstrate the need to

implement RBI to shift to RBI from time-interval strategies, it has to be justified.

When you take into consideration the age of structures throughout the region, this need is now

becoming much more apparent.

The challenge now, is implementing a fairly entrepreneurial practice into an industry (and region)

which could be considered to be very conservative and process driven. As you can see from the data

above, a lack of understanding of the basic RBI methodology, experience and support from the

regulators makes implementing such a practice very difficult.

It is also quite interesting that whilst the majority, more than 60%, consider RBI to be highly relevant

to their roles, around a third of the audience do not. This is highly unusual, as most would see RBI as

a business decision as well as an engineering one. Prioritizing the most at risk platforms, investingmore time and budget in these assets to ensure long-term commercial operations, would be

considered a very sensible business decision. However, a third of our respondents do not consider

RBI as a priority.

Compared against previous statistics which demonstrate that operational efficiency would be

considered a high priority within their business (78%) this makes a more unusual case. For most,

RBI and operational efficiency would go hand in hand.

1 2 3 4 5% 0 6.06 57.58 24.24 12.12

0

10

20

30

40

50

60

70

How much of an impact do

you think the shift instandards (API to ISO) will

impact engineers in the

Asia-Pacific markets?

Yes

No

Would you consider the shift

from API to ISO a positivemove for the Asia-Pacific

markets?


11/13


12/13

Q. How much of a priority would you consider the 1000 Year Wave for structural engineers?

5 (High Priority) 18.18

4 39.39

3 36.36

2 3.031 (Low Priority) 3.03

This is certainly an interesting area, as the 1000 Year Wave is obviously a concern for most

structural engineers in the region, though metocean data is certainly not playing a strong enough

role within the design and maintenance designs.

Considering the consequences implied against the 1000 Year Wave, defenses and contingency

plans are being implemented for all assets under operation, though it is quite surprising from the

data above that metocean data is not playing a more prominent role in design and redesign

decisions.

1 2 3 4 5

% 0 9.09 21.21 42.42 27.27

0

5

10

15

20

25

30

35

40

45

How much of a role should

metocean data play in a

structural engineers role?

1 2 3 4 5

% 6.06 6.06 54.55 27.27 6.06

0

10

20

30

40

50

60

How much of a role does

metocean data currently play

in design and maintenance

decisions?


13/13

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