Frode HjelmelandSales Manager Oil & Gas

INTSOK’s 2016 US‐Norway Technology Conference 

Company founded by Frank Mohn in 1938

1960s - first company applying submerged hydraulic drive to marine pumps

1970s - entered the North Sea offshore market with hydraulic driven fire water pumps

1980s - introduced our electric submersible pump concept

1990s - started promoting use of caisson installed pumps in FPSOs

for SWL and FWP applications.

1996 - first SWL in caisson on Bluewater/Hess Glas Dowr FPSO

1997 - first submerged FWP in caisson on Mærsk Curlew FPSO

2012 - first SWL to FLNG Shell Prelude

Brief intro on Framo and submersible pumps

Our point of view

• Submersible pumps installed in caissons have substantially lower CAPEX than conventional SWL pumps installed in pump room.

• Risk for uncontrolled flooding eliminated – no large hull penetrations required.

• Installation of suction hoses facilitated by separate caissons

• OPEX for the pump room system is higher than for a system with caisson installed pumps;• Longer pipe routing – higher friction losses – increased power

consumption.• Maintenance on suction valves, strainers, HVAC and other utilities in

pump room

Number of employees: 1300 (Alfa Laval total group ~18.000)Turnover in 2015 : 5,6 Bill NOK (~ 15% of Alfa Laval TT)

Key areas

CASE STUDY CAPEXPUMP ROOM PUMPS

VS.CAISSON INSTALLED PUMPS

Data and figures for the SWL case taken from a conversion project excecuted 2014/15 and thefigures and calculations are made by Bumi Armada.

The converted FPSO have a storage capacity of 1.7 MMbbl; handle up to 80,000 bbls crude oil

Case study - Sea Water Cooling system

• 3 x 50% SWL each: 2500 m3/h @ 9 barg

• Pump Material: 25 Cr. Duplex

• Power: 11 kV, Motor rating 1500 kW

• Hull depth: ~ 30m

• Distance from pump room to consumers (Main HEX): ~300m

• Distance from caissons to consumers (Main HEX): ~50m

Pump locations

Pump room installed, aft under water line Caisson installed,

and serviced from deck

Pump Pump room installation

Caisson installation

CAPEX Comparison

DESCRIPTIONTECHNICAL COST (USD)

Conventional Submersible Conventional Submersible

1 Unit cost Approx USD 810K per pump Approx. USD 1.5 mil per pump 2,430,000 4,500,000

2 Delivery 40 Weeks 48-52 Weeks.

3 Proposed location Forward machinery space On ship's side within Deck Crane reach

4 Machinery space

Required c/w outfitting stairs, lightings, F&G, telecom, insulation, painting, ventilation, fixed fire protection, etc.Steel (material cost) - USD 1.5 million Steel (labor cost) - USD 1.15 millionAccess way - USD 750KFixed fire protection - CO2 - 100KPainting – 3000 m2 - USDXXX

Not required. However, without machinery space, the diesel lift pumps need to be changed to deep well pumps same as the methanol lift pumps. The containerized fire water pumps will be located on top of temporary refugee on main deck.

Assume additional 100K to change diesel lift pumps

USD750 K to strengthen the temporary refugee to accommodate the firewater pump.

3,500,000 850,000

5 CaissonNot required.

Pumps foundation - USD 100K

Yes with working platform around the caissons on upper deckassume 1200 mm diameterSteel (material cost) -USD 750KSteel (labor cost) - USD 720K

100,000 1,470,000

CAPEX Comparison

6 Seachest

2 new sea chest required, c/w utility pipes like compressed air, hypochlorite, sea chest cover etc.StrainersShipside valves, isolation valves2 SC - Approx. USD 600K (labor)Steel (material cost) - USD 750KUSD80 K (8 tonnes grating labor & material)USD 50K (SC blanks)

Not required

1,480,000 0

7 Material handling

Pumps - lifting beams within machinery space & winches or small davit required on deck.Suction Hose - Winch/davit/crane on deck near to ship's side required5T davit/winchSteel - 10T

Pumps and suction hose within deck crane reach and laydown area. 500,000 0

8 Piping

Approx 300 meter SW pipes & hypochlorite pipes300 m x 2030 = USD 610K (labor)300 m = USD 100K (30" GRE pipes)300 m x 89 = USD 27K (labor)300 m = USD 3K (2" GRE pipes)

Approx. 50 meter pipes & hypochlorite pipes

50 m x 2030 = USD 100K (labor)50 m = USD 20K (30" GRE pipes)50 m x 89 = USD 5K (labor)50 m = USD 1K (2" GRE pipes)

740,000 131,000

CAPEX Comparison

9 Power cables

Approx. 300 meter eachTotal 900 metersAssume 1500 kW motor95 dia cables, 3CCable - 900 x 80 = USD 72 KLabor - 900 x 20 = USD 18 K600W SS Cable Trays - 900 x 250 = USD 225Klabor - 900 x 170 = USD 153 K

Approx 50 meter eachTotal 150 metersAssume 1500 kW motor95 dia cables, 3CMaterial - 150 x 80 = USD 12 KCable - 150 x 20 = USD 3 K600W SS Cable Trays - 150 x 250 = USD 37.5 Klabor - 150 x 170 = USD 25.5 K

468,000 78,000

10 Instrument cables

Approx. 300 meter eachTotal 900 metersCable 25 dia - 900 x 20 = 18Klabor - 900 x 10 = 9K150W SS cable trays - 900 x 190 = 171Klabor - 900 x 120 = 108K

Approx 50 meter eachtotal 150 metersCable 25 dia - 150 x 20 = 3Klabor - 150 x 10 = 1.5K150W SS cable trays - 150 x 190 = 28.5 Klabor - 150 x 120 = 18K

306,000 51,000

11 Potential clashing

100 m suction hose and risers/chains Far away from risers/chains

12 SafetyRisk of uncontrolled flooding due to leakage on seachest piping

Incidental flooding exposure avoided.

TOTAL 9,524,000 7,080,000

Summary

• Submersible SWL pumps for caisson installation will have approx. 35 % lower CAPEX than an conventional SWL pumps for pump room installation confirmed by a third party.

• Additional Engineering not included in the comparison, so the difference most likely higher.

• Also confirming uncontrolled flooding eliminated

• Challenges with suction hoses when using pump room solution

Similar or even bigger differences will be seen on firewater pump systems as even

more interfaces will have to be solved

Similar or even bigger differences will be seen on firewater pump systems as even

more interfaces will have to be solved

Fire water pump room

The job took 3000 hrs with a crew of 25-30 men

Deck mounted Power unit

When do you need the pumps?

Pump room installation

Caisson installed pumps

Applies for both SWL and FWP

Conclusions

Caisson installation has lower total CAPEX and OPEX Investments (money spent) can be delayed up to a year Provides more time to include last minute process changes By adding spare caisson – or installing large enough caissons,

added capacity can be easier made for future modifications in cases where tie-ins from other fields are included.

Ballast and de-ballast pump should also be arranged in a way that hull penetration is avoided. I.e. pumping water above deck level.

In general; Avoid hull penetration and improve safety & HSE!

Do more for less!

Thank you for your attention !