ANALYSIS INFIELD

page 2

MARINPARTNERING FOR PERFORMANCE

The independent Maritime Research

Institute Netherlands assists clients

in developing new concepts, testing

designs and solving problems.

Project management Getting the Market – Frans Swarttouw Editors Damen Communications Department, Getting the Market Text Matt Johnson, Tom Scott Design & Art Direction Damen Communications Department Photography Damen Communications Department, Ampelmann, Pon Power, Wintershall Print TuijtelDamen Shipyards Group, Avelingen-West 20, 4202 MS Gorinchem, the Netherlands, www.damen.com, info@damen.com All rights reserved, Copyright Damen Shipyards Group

WINTERSHALL

MARINE ACCESS

AMPELMANN

A MATTER OF TRUST

AQUA DIVING SERVICES

DIFFERENTIATING page 5

page 6page 8 page 10

DAMEN OFFSHORE JOURNALProducts, markets and developments

from our business partners’ perspective.

INTRODUCING THE DG JACK RANGE

COLLABORATION GUSTOMSC AND DAMEN SHIPYARDS GROUP

A range of self-propelled and non-self-

propelled jack-up platforms

for the offshore industries. page 4

ISSUE 2Q4 2016

OFFSHORE JOURNAL

INFIELD SYSTEMSDEFINING KEY DRIVERS FOR THE OFFSHORE ENERGY SECTOR

Positive outlook in the medium term

It goes without saying that the price of oil is critical to the rates of activity in offshore

exploration and production. Infield / Wood Mackenzie expects the recent excess of

supply over demand to start rebalancing, with a notable impact in H2 2017 when stocks

will begin to be drawn down significantly for the first time in two years. This will support

prices and the effect will be further enhanced if OPEC can sustain the 750k barrels a day

(b/d) cut that it announced in October.

Structurally, a recovery of the oil price will be driven by anticipated annual growth in

global demand of 1m b/d plus a fall in non-OPEC production due to the recent decline

in investment hitting field production levels. This could cut as much as 2m b/d (5%) off

overall output. The result will be a typical supply gap that grows at 2-3m b/d each year.

So prices will need to recover to support future projects.

Infield / Wood Mackenzie forecasts that the oil price will around $80 a barrel by 2020.

Fracking and other ‘tight’ oil sources plus renewables will replace some of the lost

production, but new conventional projects including offshore will need to come on

stream to fill the supply gap.

Capital expenditure

New projects will mean increased rates of capital expenditure. However, these will

come slowly to the offshore sector. The onshore sector in the USA will feel the effect

first, and even there many producers will need to see their corporate balance sheets

improve before they can raise the necessary finance at reasonable rates. Investors will

need to be reassured that the new price level for crude is there to stay to support higher

capital expenditure.

As part of its forward planning, Damen consults industry experts on their assessments of

what changes lie ahead. In the offshore oil and gas industry Damen works with Infield

Systems, now a subsidiary of Wood Mackenzie, the leading provider of commercial

intelligence to the natural resources industry.

Alan Gelder

VP Refining, Chemicals and Oil markets EMEARC ResearchWood MacKenzie

2

INFIELD SYSTEMSDEFINING KEY DRIVERS FOR THE OFFSHORE ENERGY SECTOR

Corporate activity

Suppliers to the offshore oil and gas industry will also be affected by the changes in the

strategies of their clients. Infield / Wood Mackenzie anticipates three main themes in

the coming years. The first of these will be the need of production companies to access

new sources of low-cost supply. At the same time they will seek to exploit those assets

in their existing portfolios which can profitably be brought on stream in the near term.

This will mean a continued drive to push down break-even points and may also result in

the scale of projects being reduced. Lastly, Infield / Wood Mackenzie expects the oil

majors to pursue partnerships in the Middle East to exploit high volume,

underdeveloped resources that again can come on stream quickly. All these offer

opportunities for suppliers. Those that can offer competitive pricing and rapid delivery

will benefit the most, as always.

LNG

For LNG, the outlook is tougher. With large amounts of capacity still coming online,

particularly in the USA and Australia, and strong competition in Europe between USA

suppliers and Gazprom, prices are expected to remain soft until 2023-24. Investment

will inevitably fall off during the intervening period, which is to be expected following

the high levels in recent years.

Decommissioning

On the plus side, at least in north-west Europe, is the prospect of major investment in

decommissioning. Infield / Wood Mackenzie expects over $50 billion to be spent

between now and 2050 on decommissioning redundant offshore production facilities

on the UK continental shelf in the North Sea. It estimates that over 140 of the 800

existing fields will cease production over the next five years alone. Price spikes and

actual abandonment rates will affect the speed at which this happens, but as the fields

become uneconomical, even at $80 a barrel, mass closures are inevitable. This will

create many new opportunities across the wider industry.

Overall, the outlook for the offshore oil and gas market is positive in the long term, with

prices set to rise and a requirement for new sources of production. Add into that

decommissioning and the expansion of the offshore renewables sector, and the

prospects for those suppliers that listen to the needs of the sector and deliver the

pricing and quality that the customers demand look set to be on an upward trajectory.

Alan Gelder

VP Refining, Chemicals and Oil markets EMEARC ResearchWood MacKenzie

3

Nils van Nood

Managing DirectorGustoMSC

The collaboration will be based on GustoMSC’s strong

track record in the design of jack-ups and provision

of jacking systems, combined with Damen’s extensive

experience in shipbuilding and vessel optimisation,

financing and worldwide after-sales services.

GustoMSC Managing Director Nils van Nood said of

the collaboration: “We are very pleased to team-up

with Damen to provide their clients proven and reliable

jack-up solutions. These jack-ups form an expansion of

the Damen portfolio… based on GustoMSC’s proven

designs and will include GustoMSC’s proven jacking

systems.

“As a result of this collaboration the joint Damen

and GustoMSC team is fully aligned to provide an

optimised solution covering the complete lifecycle of

the units, including the design, the construction and

delivery as well as the services during operational

life. The future owners of these jack-ups will enjoy a

product of combined Damen and GustoMSC quality

and they will experience first class global services.”

This arrangement provides the market with a total

solution, drawing on the extensive experience of both

companies, and on the wealth of knowledge within

the Dutch maritime industry. Working together in this

way, GustoMSC and Damen will be able to offer total

control over the entire process, covering everything

from basic design, through construction, to after-sales

care – anywhere in the world.

Damen Chief Commercial Officer Arnout Damen

explained: “The collaboration between Damen and

GustoMSC represents a considered response to the

needs of the entire offshore industry. It provides

operators with a reliable, effective solution, combining

GustoMSC’s expertise in design and engineering with

Damen’s knowledge of construction, quality, outfitting,

after sales service and finance options.

“We are looking forward to working with GustoMSC

on the development of this range. The DG JACK will

provide a bridge between the offshore energy sectors

and offer the versatility to carry out multiple and varied

tasks, safely, efficiently and at competitive rates, in line

with market expectations.”

The decision to partner up and produce the DG JACK

range is based upon feedback from the offshore

markets. DG JACKs will operate across the offshore

spectrum, in both renewable and non-renewable sectors.

Damen Head of Business Development Peter Robert

explained that trends in the offshore wind industry

gave the DG JACK range an assured welcome: “Wind

turbine capacity has grown 41.1% from 2010 to 2015.

In 2015, the average capacity of new wind turbines

installed was 4.2 MW, a significant increase from

3.0 MW in 2010, reflecting a period of continuous

development in turbine technology to increase energy

yields at sea. The deployment of 4-6 MW turbines seen

in 2015 will be followed by the gradual introduction of

6-8 MW turbines closer towards 2018.”

Operational experience to date has shown that jack-up

vessel intervention has been required at operational

windfarms to correct failures in relation to main

components, both for isolated defects and to introduce

design improvements. Most of the interventions have

been in relation to early operational life and there is

currently only a limited experience from offshore wind

turbines on longer-term wear out rates and the typical

length of life for critical main components, including

blades, generators, transformers and gearboxes.

Consents granted to forthcoming projects indicate

that this trend of scaling up is set to continue in

the long term. Also, the fact that wind farms are

placed farther offshore and in deeper water, means

different capabilities are required than those seen

in the current fleet of jack-ups operating in offshore

wind. And, with the design life of offshore wind farms

being between 20 and 25 years, routine operation and

maintenance tasks are assured to ensure performance

optimisation.

INTRODUCING THE DG JACK RANGE

Recently, Damen Shipyards Group and GustoMSC announced the

forming of a collaboration in order to produce a range of self-propelled

and non-self-propelled jack-up platforms for the offshore industries –

the DG JACK range.

4

The jack-up advantage

Mr Frost purchased Aqua Diving’s first self-

propelled, jack-up rig some twenty years

ago. He perceived that jack-ups are not so

much vessels as mobile, stable platforms

capable of taking on a wide variety of roles

for extended periods. And with much of

the Arabian Gulf having a depth of 40

metres or less, it is ideal for jack-up

operations. The Aqua Jack-1, as the first

rig was named, was a pre-owned unit

measuring 25 x 22 metres and sleeping up

to 26 personnel, including 6 crew. Still in

use today, it taught Mr Frost and his team

a great deal about jack-ups in general and

what clients wanted from them. Armed

with this knowledge, in 2014 Aqua Diving

designed and built locally its first newbuild.

29 x 19 metres and built to RINA Class, the

Aqua Lift-II sleeps up to 80 personnel and

was fitted out to an exceptionally high

standard. She has worked continuously

since build and has proved very

satisfactory to the client.

Creating a home away from home

“Our experience has taught us that what

clients want is a really good quality living

and working environment. This means

efficient air-conditioning and heating,

en-suite facilities in every room and

internet on every floor,” says Mr Frost,

“also good food and space to relax. A high

quality environment increases morale and

improves the productivity of the

workforce, making extended stays on

board much more bearable. The Aqua

Lift-II delivers all that along with a stable

platform which is also much more

comfortable than a rolling ship.

”Since its delivery, the rig has been on

long-term charter to a major Saudi-

Arabian production company, and has

received numerous messages of

appreciation for the all-round comfort

that she provides.

Following that success, Aqua Diving has

now designed its third jack-up rig which

builds on the knowledge gained from the

Aqua Lift-II. Despite the downturn in the

global oil market, Mr Frost sees increasing

demand in the region for small, very

specialised rigs that provide a high class

environment to work in. “The yard that

built the Aqua Lift-II was not big enough to

to build what we needed,” he continues,

“so I walked into Damen Shipyards Sharjah

one day and told them what I wanted.”

Their immediate response was both

enthusiastic and professional, with the

team keen to construct a type of vessel

that this particular Damen yard had not

built before."

The Aqua Rise III will be 36 x 26 metres

and have first-class accommodation for

126 personnel, 350m² of deck space, a

helipad, life boats and two cranes rated at

45 tonnes each. Additional facilities will

include a gym and large recreation room.

She will be able to work in waters of up to

130 metres.

“Damen was supportive from the start,”

says Mr Frost. “As a family-owned

business, Damen has an entrepreneurial

spirit and a long-term view which means

they understand companies like ours,

especially in difficult times. They

recognise the risks involved.”

After much design approval work, the first

steel was cut in mid-September in a

ceremony which involved all the staff and

substituted coconut milk for champagne,

along with Hindu blessings and plenty of

incense. Aqua Diving has also started

using Damen Shipyards Sharjah for

repairs to its other vessels and is

discussing additional projects including a

fourth jack-up rig for its growing fleet.

“We already have offshore construction

work lined up for the Aqua Rise III when

we take delivery in February 2018. We are

confident that Damen will deliver on

time,” Mr Frost continues. “The demand

for these quality niche rigs looks good,

and for us with our experience we make

them economical to operate and easy to

maintain, when compared to

conventional OSVs/DP2s. This is yet

another advantage at a time when

operators are doing everything to

minimise their costs and increase their

production.

“Damen is helping us to achieve exactly

what we want, to the standards that we

know our clients will appreciate,” he

concludes. “This will strengthen our

future endeavours by keeping our clients

as happy as we are!”

Aqua Diving Services was founded in Sharjah in 1975 by

Clive Frost, who owns and manages it to this day. After

40 years, it still provides diving services but has also

expanded into other offshore support activities. With

offices around the Arabian Gulf, its client base is a

roll-call of the leading offshore oil and gas production

and support companies operating in the region.

Clive Frost

DirectorAqua Diving Services

AQUA DIVING SERVICESDIFFERENTIATING IN A DIFFICULT MARKETNils van Nood

Managing DirectorGustoMSC

INTRODUCING THE DG JACK RANGE

5

AMPELMANNIT’S A MATTER OF TRUST

Offshore access: getting a closer look at Ampelmann

Ampelmann is a name synonymous with motion compensated offshore access. The

company’s foundations lie firmly in offshore wind, on the realisation that, as the

market developed, there was going to be an increasing need to transfer personnel

safely from ship to turbine. CEO Jim Craig answers some questions about the

company’s success and how the system fits in to today’s market.

What is the reason behind Ampelmann’s success?

Ampelmann started with a small, talented team and a goal to make offshore access

as easy as crossing the street. The basis was effectively an inverted hexapod similar

to a flight simulator which negated the seas' movement completely. We turned this

into a product that our customers trusted. This is probably one of the biggest factors

in our success; customers put their most important asset – their people – across our

systems. To date almost 3 million people on over 150 projects have walked to work

safely.

How has the company’s focus changed over the years?

Ampelmann's goal of ‘making offshore access as easy as crossing the street’ was

focused initially on the user – the person crossing to the platform. However, over

the last two years we have been increasingly focused on making it easy for our

customers to get a complete solution whenever they want it, wherever they are in

the world with the same high quality service.

Describe Ampelmann’s relevance in today’s market conditions?

The current market is incredibly challenging for the whole supply chain. The benefits

of a product like ours become even more apparent in today’s market. Customers see

that this is more than just about safety. By getting people safely to work in all sea

conditions we help the energy company reduce Opex, increase time on tools and

increase production.

6

How do you cope with the increasing amount of competition?

It keeps us sharp. There are several companies coming to the market, but I think they

have seen that it is not easy to develop a system with such redundancy, safety and

performance. We have set the bar pretty high – there is still no other solution that

fully compensates the movement of the seas. Furthermore our service model means

we provide a worldwide service with trained operators and certified systems.

Is this service model linked to the fact that most Ampelmann

systems are for rental use?

It's a tough time to be a vessel owner; buying a motion compensated gangway is a

major capital investment. Why would you want to own, maintain, operate and certify

a gangway when you can pay for one just when you need it? Short term deployments

are an attractive option for many vessel owners and end users. It's about making life

easy for our customers – not just using it but also paying for it.

Damen and Ampelmann recently joined forces to test your L-Type system on board

their Fast Crew Supplier 5009. How will this cooperation benefit the end client?

We are very excited to work together with Damen. They have revolutionised the

shipbuilding industry and I think we are doing the same with offshore access.

Combining two great products delivers a solution that the customer really needs.

Operators can improve safety, performance and efficiency while reducing interfaces

and costs.

What are Ampelmann’s ambitions for the future?

There are a number of areas where we want to grow and develop; in cargo transfer

and with systems that can transfer a larger amount of people. The possibility of

providing a complete integrated ‘crew change solution’ is interesting too. Trust plays

an important role – we want to become the default choice for our customers – such

that they don't want or need to go anywhere else!

Jim Craig

CEOAmpelmann Operations

7

MARIN RESEARCH & DEVELOPMENT

“We want to contribute to optimal and sustainable maritime structures as well as safe

and efficient operations. We strive to be a world leader in development, application

and transfer of hydrodynamic and nautical knowledge, and the pairing of this

knowledge to other technological areas,” states Mr Buchner.

Traditionally MARIN has played a predominantly design verification and advisory role,

however, due to changes in the industry emphasising innovative solutions and safe

operations, MARIN’s role has changed. With an 80-year track record of expertise and

combination of tools available, MARIN recognised that its role could be applied much

earlier in the concept development process of ships and offshore structures, ultimately

allowing for greater freedom to apply changes.

MARIN has been involved in testing and simulation projects for Damen designs ranging

from naval ships to tug boats and fast patrol vessels. In 2015, after extensive testing,

MARIN confirmed the efficiency of the first LNG-powered Damen EcoLiner tanker -

Europe’s greenest inland vessel. Developed to improve fuel economy while reducing

emissions, the vessel reduces fuel costs by up to 15%. The design combined the world’s

first installations of the Air-Lubricated Hull (ACES), a gas-electrical shaft propulsion

system, and one of the first Van der Velden FLEX Tunnel installations

“A ship like the EcoLiner is an example of the fact that MARIN and Damen’s cooperation

is wider than just working on specific designs. The air lubrication concept was

developed in a long-term cooperation with many European partners. Together we

studied the technology needed and problems to be solved before an actual ship could

be built,” states Mr Buchner. Testing of the innovative design ranged from simulations

to model tests and even full-scale trials.

Equipped with MARIN’s verification, Damen confidently placed the 3,040 m3 capacity

EcoLiner on the market. The potential to drastically reduce inland shipping costs and

establish sustainable operations generated a great deal of interest among operators

especially with inland emissions regulations on the horizon.

Additionally, in 2016, Damen commissioned MARIN to perform model tests on a Wind

Farm Service Vessel (WSV) equipped with a with a DP system, enabling the vessel to

maintain its position during transfer operations. The DP tests were conducted to

determine vessel behaviour in operating conditions and to verify the predicted DP

control strategy for reducing the vessel’s travel time to a wind turbine. Both station

keeping and transit tests were performed in environments which combined current,

irregular waves and wind. During the transit tests, three approach and departure

variations were tested using the DP control strategy to get a clear indication of the

most effective approach.

In addition to direct collaborations, MARIN and Damen are members of the

Cooperative Research Ships (CRS) - an international organisation aimed at jointly

carrying out projects on ship hydromechanics such as powering, seakeeping,

manoeuvring and ship operations. Members gather annually and vote on research

programmes for the next few years, with an average of 10-15 projects running

simultaneously.

“Although members pay an annual membership fee, membership is achieved by active

participation in projects. This highlights the unique character and success of the CRS:

researching its members' ship hydromechanics, for the members and by the members,”

says Mr Buchner. Damen is also involved in MARIN’s Joint Industry Projects , which in

comparison to the CRS, focus on one issue and jointly solve a problem and develop a

new methodology.

The future for MARIN shows a strong development in the role of Computational Fluid

Dynamics (CFD) in the maritime industry. “We have always been involved in the

development, validation and application of CFD for the maritime sector. As a result, we

have our own CFD tools as well as expertise in the interpretation of the results,” says Mr

Buchner. In order to accommodate several current projects requiring a combination of

calculations and model testing, MARIN has recently invested in a large (4000 core)

computer cluster. The combination of a CFD code and large computer cluster will see a

new virtual CFD facility for the maritime sector take shape. This new facility will allow

MARIN to continue to conduct the most complex and advanced CFD calculations and

undoubtedly cross paths with Damen in the future as well.

The independent Maritime Research Institute Netherlands (MARIN)

assists clients in developing new concepts, testing designs and solving

problems. “We want to be a reliable, innovative, independent service provider

for the maritime industry and society as a whole,” says MARIN President Bas Buchner.

Through sophisticated model testing facilities, simulators and full-scale

trials, MARIN’s objective is clear – making ships cleaner safer and smarter.

Bas Buchner

PresidentMARIN

PARTNERING FOR PERFORMANCE

8

“The industry moved away from corrective maintenance many years ago,” begins Mr Neuteboom. “It was followed by preventative maintenance, and now we are moving into the early phases of condition-based maintenance.” How does he see that happening? “Data is the future,” he answers. “Caterpillar has established Marine Asset Intelligence (MAI), a completely new division.” The new programme is based on extensive data collection to build an enormous database that will serve as the baseline for comparison analysis.

Defining data

“MAI is about the continuous measurement of many components that are installed on a vessel,” he explains. “It goes well beyond monitoring just the engine. This is about collecting data from all the systems and equipment on a vessel – compressors, oil separators, HVAC, radar. This is really a big step – it’s total vessel monitoring.”The key to MAI is the way the data are analysed: “The power of this system is that data is collected and then compared to baseline measurements. For example, it’s not just comparing engine injector data from one engine, not from the whole fleet, but from the entire database.”

Secret combination

Furthermore, by combining various sets of data and looking for relationships between them, the system becomes even smarter, creating an overall picture of the vessel’s operating state. Mr Neuteboom tells of one real-life example of this all-inclusive

approach: “The port engine of the vessel was running at just a slightly higher load, its rudder angles had slightly changed and the vessel’s position in the water had also altered.”

Nothing remarkable about any one of those snippets of information, but when viewed as a whole it’s a different story. “By combining these three small pieces of information, we could alarm the owner of a problem. Divers inspected the vessel and found a rope on the prop shaft – its timely removal saved thousands of dollars.” By comparing and combining data, it’s clear that taking quick action can prevent substantial damage.

Taking control

Looking specifically at the offshore market, with its high day rates, such an advanced service programme could be a way to extend and optimise maintenance on increasingly complex vessels. “This system is for companies that have safety and reliability as priorities.”

With MAI now in the pilot stage, Caterpillar is talking to leading maritime companies, including Damen, about the setup. “It will be up to the owner to decide the scope of coverage – which systems and components to monitor,” says Mr Neuteboom. “After all, this is more than preventing breakdowns, it’s about owners gaining control and being able to plan their maintenance schedule for their whole fleet to maximise their uptime. This can only work if it’s beneficial to the customer.”

INTELLIGENT MAINTENANCETHE EVER INCREASING IMPORTANCE OF TECHNOLOGY

IN MARITIME SERVICE

Gone are the days of fixing assets after they broke down. This way of doing things is considered as ‘too little,

too late’. The maritime service and maintenance sector is ever-progressing, constantly looking for ways to

increase uptime and reduce costs. In the last decades, the role of technology has become more and more

important, and this trend is showing no sign of slowing down. To learn more about the latest developments,

Damen Offshore Journal caught up with Jochem Neuteboom, Commercial Director Marine at Pon Power, the

Netherlands-based Caterpillar dealer.

Jochem Neuteboom

Commercial Director Marine,Pon Power

9

MARINE ACCESS WORKING WITH OPERATORS TO CUT THE COST

Rob Molenaar

Logistics SuperintendentWintershall

Over that half century the company has seen many changes. The North Sea was where

the offshore oil and gas industry began, and now in the second decade of the 21st

century it is where producers are developing the technology and techniques for

managing oil fields and production platforms that are nearing the end of their lives or

developing marginal fields.

Cutting OpEx the key to survival

The fall in productivity from declining fields, the high cost of maintaining expensive

assets in a hostile environment and the low cost of oil and gas are all combining to make

many North Sea fields uneconomic. 20% of the oil and gas fields currently in operation

are expected to cease production in the coming years, and many more will struggle

unless they can sharply reduce their operating costs.

“We all need to innovate if we are to cut our expenditure,” says Rob Molenaar, Logistics

Superintendent at Wintershall, “particularly on the marginal fields. Reducing the

maintenance and operational costs of those platforms is a big issue now.” Traditionally,

producers have used helicopters to ferry personnel to and from offshore platforms.

They are fast and able to operate in a wide range of weather conditions, but with high

operating costs of their own, they are relatively expensive to charter.

Walk 2 Work

“Everyone is looking at ways of reducing the reliance on helicopters for moving

personnel and materials to and from the platforms,” continues Mr Molenaar, “which is

why the Walk 2 Work (W2W) concept is very attractive.” W2W is the idea of designing

new vessels specifically for deploying and retrieving personnel and equipment in a

much wider range of weather conditions than has been previously possible.

Since September 2015, Wintershall has been chartering a Damen Fast Crew Supplier

(FCS) 2610, called the Merel G, owned by Groen offshore. Part of its role has been

servicing the company’s L6-B unmanned mini-platform producing natural gas in the

Dutch zone of the North Sea.

“We have learned a great deal from the Merel G,” says Mr Molenaar. “There is a mix of

needs that require different solutions. For example, in a swell of more than 1.5 metres

we found that it became difficult to gain safe access and with our more distant facilities

it would take up to 10 hours to reach them.

Helicopters will still be needed for rapid, long range operations, but ideally used only

when a W2W vessel is unable to meet the need.” Moreover, the cost-savings are

apparent once W2W is applied on a bigger scale and the installation of motion-

compensated transfer systems means that the new generation of W2W vessels may

have a much wider operating window.

Its time is coming

“Everyone in the industry realises that the W2W concept has a major role to play in the

future,” he goes on, “but with only a few such vessels in operation, availability at short

notice is an issue so take up is slow. Demand will develop as the need for such vessels

arises and people see other operators using them. It’s like electric cars; it’s taking a

while to build trust in a new idea as people are unfamiliar with the technology and

infrastructure. Lots of evaluation is going on as companies assess the costs and benefits

and everyone is watching each other.”

Mr Molenaar thinks that the upcoming move to close platforms prior to

decommissioning may be a further catalyst for the widespread adoption of W2W

vessels. “Even when a platform is closed it will require regular maintenance of critical

equipment. W2W vessels will be perfect for low-cost, low-frequency, pre-scheduled

maintenance stops, and also ideal for the actual decommissioning operations.”

It is good to see that even after 40 years, the North Sea oil and gas industry continues

to lead the way in developing innovative solutions to the new challenges that

continually arise.

Wintershall is Germany’s largest internationally active producer of crude

oil and natural gas, with operations around the world. One of its key

areas of operations is the North Sea. With over 40 years of experience in

those waters, there are few other companies that have been there longer.

10

DECOMMISSIONINGGETTING READY FOR A NEW ERA

This is expected to be a lengthy process, with the gradual

dismantling of the North Sea oil and gas industry

expected to continue up to 2050 and beyond. However,

it is estimated that in the next five years alone around

140 of the total of 800 fields currently in operation will be

closed. Where closure occurs, decommissioning and

dismantling will follow on close behind. This will bring

with it many challenges, but also many opportunities.

Analysts predict that around €50 billion will need to be

spent on decommissioning over the next 35 years.

Dismantling the production facilities and transporting

their structures and components back to the shore for

recycling is going to be a major endeavour. Amongst the

range of off and onshore infrastructure that will be

required will be a new generation of vessels to undertake

the work. Here as elsewhere cost minimisation will be

vital in what will be a non-profit making activity for the oil

majors paying the bills.

Getting ready for the next stage

Damen is already making plans for this new offshore

industry. It recently announced that it is developing

specialist decommissioning concept vessels that

anticipate the demands that will be made on them.

Firstly, they must be capable of taking on multiple roles;

dismantling offshore structures is a highly complex

business that at first sight will require a wide variety of

specialist vessels that can between them undertake roles

such as providing craneage for the removal of

components, deck space for transport to land and

accommodation for personnel working on-site.

Damen however is proposing modular vessels that can

be quickly fitted out with mission-specific modules. This

allows an individual hull to offer a range of specialist

capabilities, resulting in maximum usage and reduced

investment. Damen intends to focus on the middle

market, leaving the largest platforms to the specialists

with their very large vessels. It calculates that vessels

capable of lifting up to 1,600 tonnes will cover 85% of

the offshore structures in the North Sea.

Cooperation is the key

This work is part of a broader move across the industry to

develop collectively the tools and techniques that will be

needed in the decades ahead. Damen is working with its

customers and suppliers to determine what equipment

will be required and the tasks that will be need to be

addressed in an era of high volume decommissioning.

The Damen vessel concepts are intended to stimulate

debate and encourage cooperation so that the industry

is prepared for the future. Existing vessels such as

Damen’s SOV, the first of which is currently in build for

Bibby Marine Services, as the Bibby WaveMaster 1, will

also have a role to play. Originally designed to provide

advanced marine access to wind turbines, its attributes

are just those that will be required in the labour-intensive

business of decommissioning.

It is early days yet, but the race is on to get ready for the

new offshore era. Those who start preparing now will be

best positioned to take advantage of the opportunities

that are just around the corner.

11

Platform Supply Vessels:

Highly efficient, large-capacity ships, especially suited for transport of crew and supplies to and from offshore structures. The vessels may be optionally fitted with: Fire Fighting, Oil Recovery and/or high class DP installations. The vessel design provides a safe and comfortable working environment.

Well Stimulation Vessel: Increasing the production performance of deteriorated oil wells is often performed by old PSVs which have been retrofitted with the required pumping and mixing equipment. Damen has designed a versatile well-stimulation vessel in recognition of the fact that purpose-built vessels are increasingly coming to be seen as safer and more economical.

Service Operations VesselDesigned to provide motion compensated transfers for personnel and equipment, while facilitating optimum logistic flows for carrying out maintenance and repairs for the Offshore Wind industry, as well as for unmanned offshore installations.

Well-appointed accommodation for 45 maintenance personnel plus 15 crew.

Fast Crew Supplier 2610:

More than 80 vessels featuring the unique Damen Sea Axe, ranging from 19 meters to to 70 meters, have been supplied. Operating in the marine logistics, these vessels can be equiped with gangway for marine access solutions.

Fast Crew Supplier 5009:

The vessel with 240 m2 deck area is well equipped for fast, safe and comfortable transfer of crew and cargo. Additionally, the vessel is capable of emergency towage and crane handling functionality. The Sea Axe design offers unprecedented seakeeping characteristics. Besides, this very slender hull shape is very fuel efficient.

Damen Offshore Carrier: A 7,500 – 10,000 dwt range multi-purpose vessel with heavylift, RO-RO and offshore installation capabilities. It features 65 days endurance, 2,300m2 of deck area, and deck strength of 20t/m2. The vessel can be fitted with the Damen Deep Dredge system, for mining and dredging.

Offshore Heavy Lift Vessel 1800:

A DP2 ship with two 900 tonnes mast cranes, 3,100m2 of free deck space and 20,000m2 of adjustable cargo hold. This vessel can work in water depths of up to 3,000m.

Oil Spill Response Vessel:

An increasing demand for vessels which are able to respond to environmental disasters is expected, especially after the Macondo disaster. Having built a number of dedicated Oil Spill Response Vessels, Damen is working on a new type for this market. Like the CSV and the AHTS, this vessel is fit for the Brazilian market and incorporates Petrobras’ OSRV-requirements.

Emergency Response Vessel 5412

In order to stay connected to ever-changing offshore requirements we have developed a new ERV design. Based on the successful T-class vessels the 5412 concept takes the lessons learned alongside the discussions with the operators. It has resulted in a new enhanced industry

standard for a dedicated Safety Standby vessel.

DAMEN OFFSHORE PORTFOLIO

DISCOVER THE WHOLE DAMEN PORTFOLIO AT PRODUCTS.DAMEN.COM