Len Messenger 18 October 2011

8/2/2019 Len Messenger 18 October 2011

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Rig move Code of Practice (COP)and Scope of Work (SOW)

- Presented on behalf of the Joint Rig Committee

October 2011www.lancashiregroup.com

INSURANCE GROUP

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Purpose

Outline Criteria for Rig Move surveying activities, including Jacking Up / Down Operations.

Clarify the roles of the Marine Warranty Surveyor, the Assured & the Underwriter.

Define the function of the respective Scope(s) of Work.

Establish guidelines for communication between the parties.

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Rig Move Warranty Survey. Outline criteria

Defined Jack-Up Rig Activities.

Wet tows exceeding 24 hours duration.

Dry tow / HLV Transportation.

Transits under own power.

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Activity Criteria Marine Warranty Surveyor

Work scope

Jack-Up Rig Activities Established Oil and Gas Field

Area where Operator and/orMarine Warranty Survey

Company is aware of any of

the following:

- previous incidence of

punch-through within the

field

- existing jack-up footprint

with different rig

- Where there have been

known problems (leg splaying

etc.)

- Or if Assured has reason to

believe that a punch- through

risk and/ or shallow gas risk

might exist

- Or if in a field or area with

no previous Jack-Up activity

SOW 1

Wet Tows of Jack-Up Rigs/Lift

Barges/Semi-Submersible and

Submersible MODUs/Drill Ship

Tows exceeding 24 hrs

duration

SOW 2

Dry Tows / HLV Transportation

of Jack-Up Rigs/Lift


Submersible MODUs

All activities SOW 3

Transits of Lift Barges / Semi-

Submersible and Submersible

MODUs and tender rigs under

their own power

Exceeding 72 hrs duration To be recommended by

Marine Warranty Surveyor on

a risk assessed basis and

agreed by Contract Leader(s)


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Work scope




the following:



field


with different rig



etc.)




might exist



SOW 1





duration

SOW 2




Submersible MODUs





their own power






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Work scope




the following:



field


with different rig



etc.)




might exist



SOW 1





duration

SOW 2




Submersible MODUs





their own power






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Work scope




the following:



field


with different rig



etc.)




might exist



SOW 1





duration

SOW 2




Submersible MODUs





their own power






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Rig Move Warranty Survey outline criteria

(contd)

Criteria met, coverage is conditional upon: (a) MWS appointment by the Assured from an agreed panel, (b)Application of the specific SOW (c) Issuance of a Certificate of Approval

Duty of the Assured to ensure compliance with all recommendations.

MWS survey to be conducted in accordance with COP & SOW.

Cost of the MWS to be borne by the Assured (Survey Allowance still available).

MWS shall be free to consult with the Underwriters.

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Code of Practice

Clarifies the roles of the Parties.

Establishes minimum standards for MWS performance.

Defines lines of communication between the parties.

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Role of the Marine Warranty Surveyor

Make reasonable endeavours to ensure risks are reduced to an acceptable level.

Only appoint personnel who are demonstrably competent.

Specify the recommendations to be met in order to minimise risk.

Ensure operations are conducted in accordance with recognised design & industry practice, Unitsoperating manual, & MWS relevant guidelines & carry out suitability surveys of vessels, structures &equipment.

Upon being satisfied that objectives are met, issue a COA, identifying recommendations to be satisfied.

The MWS shall not provide any other services that may present a conflict of interest or interfere with thework of the MWS.

Advise the Contract leader (i) If any COA is withheld, (ii) Non compliance with any Recommendations, (iii)changes to MWS key personnel.

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Role of the Assured

Once appointed, MWS not to be changed without Contract Leaders agreement.

Provide Marine Warranty Surveyor with a point of contact within the assureds' organisation, and a point ofcontact for the Contract leader.

Provide the Contract Leader with MWS contact details.

Provide the MWS with Contract leader details.

Ensure Marine Warranty Surveyor participation at all relevant project management meetings.

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Role of the Underwriters

Agree panel of Marine Warranty Surveyors.

At request of Marine Warranty Surveyor, make available:

- Relevant policy terms, conditions, and Warranty provisions

- Contact details of Contract leaders.

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Scope of Work

Sets out in detail, required MWS activities to reduce risk to an acceptable level.

Tabular format, with requirements for (i) Review & approve procedures (ii) Attendance (iii) Issue COA.

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Activity Review & Approve

Procedures/Dwgs./Design Calcs.

Attend Issue

Certificateof Approval


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SOW 1. Jack Up Rig Operations:

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Procedures/Dwgs. /Design

Calcs.

Attend Issue Certificate of

Approval

(A) Location Approval X X(B) Going On Location / Jacking Up Operations (from

entering the 500m zone at the location until at final

elevated air gap)

X X X

(C) Operating X

(D) Jacking Down Operations / Coming Off Location

(from commencing jacking down to disengaging legs

from the seabed and moving off under tow until

outside the 500m zone)

X X X


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SOW 2. Wet tow of MODUs

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Calcs.


Approval

(A) General Meteorological / Weather forecasting /

Tow routeX

(B) Tug Suitability Survey X X X(to form part of the

commence tow

certificate of

approval)

(C) Voyage Manual / Towmaster Instructions X

(D)Contingency Planning for Emergencies X

(E) Tow Operations X X XIssue C of A for tow

commencement


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SOW 3. Dry Tows/HLV Transportation of MODUs

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Calcs.


Approval

(A) General Meteorological / Weather forecasting /

Tow routeX

(B) Tug Suitability Survey X X X

(to form part of the

commence operations

certificate of

approval)

(C) Transportation Vessel/ Loading & Unloading

Equipment

X X X

(D) Loading and Unloading Operations X X X(for both loading and

unloading operations)

(E) Voyage Manual / Towmaster Instructions X

(F) Contingency Planning for Emergencies X

(G) Voyage Commencement X X XIssue C of A for tow

commencement


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SOW 4. Transits under own Power

SOW to be recommended by Marine Warranty Surveyor on a case/case risk assessed basis, and agreedby Contract Leader(s).

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Broker responses / comments

U/W's should pay for MWS - No change expected, of the common practice of underwriters allowing costreturns. (Survey allowance).

Why is duration criteria now Hours vs mileage ? - Reliability of Weather forecasting arrangements.

U/Ws free to agree changes to duration criteria.

U/W's/ MWS communication should be via Insured &/or Broker, not solely U/Ws/MWS. - Can be if soagreed/Clear communication/Speed of response/As existing CAR COP.

Insured to select from agreed MWS Panel. - U/W's agree panel. Insured free to select from the panel. Anychanges TBA by U/Ws.

Role of Insured - too many tasks. - U/W's will consider particular circumstances.

Broker to provide policy etc. details to MWS - not U/W's. - Only at MWS request to U/W's. No bar onBrokers providing such information. As existing CAR/COP.

High level of detail. Should be a generic structure, capable of variation to suit particular risks. - That isthe intention. Variations can be agreed between the parties.

Expectation that established procedures should govern the relationship. - Not looking to "re invent", butintroduce standard and consistent procedures, which are largely in place now.

We like the SOW Tables. Would be great if MWS adopted these! / All this looks sensible !

Other comments will be responded to / discussed with applicable Contract Leader.

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Sum Up

Why required - Past Rig losses & near misses. Standard MWS Rig COP/SOW designed to clarifyroles/responsibilities of the parties, and reduce risk to an acceptable level.

Benefits: Clarity of role(s), Clear, standard SOW, addressing the root causes of past losses/near misses.

New Rig scope similar in concept to CAR MWS COP/SOW, which widely adopted.

COP requirements make sense in defining roles & obligations of the parties.

SOW requirements follow present good industry practice. (MWS confirm these practices presentlyadopted).

The Criteria in the Rig Move Warranty, and SOW itself, provides a consistent generic framework that canbe tailored to suit the particular risk.

What Next ?

Rig move COP/SOW now ready for release to the market

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Questions

QUESTIONS?

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Documents

Len Messenger 18 October 2011