Presentation on theme: "F P S O Past Issues and Typical Claims"— Presentation transcript:
1F P S O Past Issues and Typical Claims FPSO’s : NO TWO ALIKEF P S O Past Issues and Typical ClaimsHouston Marine Insurance Seminar - September 2012Ted Miller, Charles Taylor Adjusting – HoustonEJM 21 Aug 1022
2Review and Discussion Points 1. The early days (80’s): FPSO’s local conversions from existing tanker hulls2. The condition of some early FPSO Tanker hulls and hull prospects3. US GOM Fleet4. Manufacturing issues5. Mooring line issues6. Umbilical Issues7. Flexible Riser issues8. Hull Issues9. Topside process system issues10. Loss of station keeping - major event11. Repair and remediation costs12. Wrap up
3Zafiro Producer Early FPSO Conversion in Galveston and Portugal Major ballast tank, bottom and steelwork repairs. Operated Offshore Equatorial Guinea 1996
4Jamestown – FPSO Early Production System - Kewit South Texas Minimal hull repairs, built ,500 dwt.– heavy scantlings.Early Production Vessel
8Extract :Australian Transport Safety Bureau Findings The Kirki carried all necessary statutory safety certificates. Safety surveys had been carried out within the schedules required by the relevant international safety conventions. The scheduling of the Kirki's special five-year survey at 22 years, rather than at 20 years, was consistent with the ship's survey program and within the rules covering the frequency of special surveys.The defects in the life-saving appliances, fire-fighting equipment, cargo equipment and the condition of engine room equipment were so numerous and of such a nature that the Inspector cannot accept that they all developed over a short period of time.The patching with canvas and the camouflaging of No7 tank lids was a deliberate attempt to mislead any person undertaking a load line survey. It is not possible to determine when the lids were patched, and it might not have been done with the knowledge of the owners or those on board the Kirki on 21 July 1991.Significant defects should have been observed during surveys by Classification Society; inspections by the Oil Major Vetting and the Vessel managers and operators; and inspections by the Port State Maritime Safety Authority.The Classification Society was responsible for the issue of statutory certificates on behalf of the Hellenic Republic of Greece. The procedures adopted by the Society during structural surveys failed to identify the areas of localised corrosion. The condition of ballast tanks 13 and 14 together with the number and nature of deficiencies in safety equipment, indicates that a number of surveys over a period of time, including surveys that were conducted under international safety conventions, were not performed effectively.
9U. S. GULF OF MEXICO FPSO FLEET Single FPSO Unit Multiple moored FPU’s U S GULF OF MEXICO FLEETU. S. GULF OF MEXICOFPSO FLEETSingle FPSO UnitMultiple moored FPU’s
10US Gulf of Mexico HELIX PRODUCER 1 Converted Ferry – Croatia in 2008 Ship Shaped Floating Production Unit FPU Topsides installed Corpus Christi Texas 2009Disconnectable Transfer System - DTS Operating Water depth 2,100ftDeployed at Green Canyon 237 Phoenix Field (Ex Typhoon)
11Deployed at Walker Ridge 249 Cascade and Chinook Fields US Gulf of Mexico BW Pioneer Converted in China and Singapore in 2010Originally Double Hull 1992 TankerFirst FPSO – Disconnectable Operating Water depth 8,200 – Ultra Deepwater)Deployed at Walker Ridge 249 Cascade and Chinook Fields
12World Record Polyester Mooring Depth 12 (11+1 spare) lengths x 2.5km long x 800 tonne MBL Polyester Tethers. This is a new world record for continuous lengths of polyester mooring tether.
13Modern analytical tools – get design / specifications right MANUFACTURING ISSUESModern analytical tools – get design / specifications rightReliant on manufacturers to produce to spec. and codesOperators however rely on QA-QC of manufacturers and suppliersOnsite inspections by operator essentialReliance on 3rd party InspectorsSmall issues – catastrophic events
14Many different designs, layouts and materials MOORING LINE ISSUESMany different designs, layouts and materialsMore incidents likely as FPSO systems ageChain lines – SteelWire Rope lines – SteelSynthetic fiber rope lines – PolyesterShackles, Links and Jewelry - SteelRelatively few manufacturers of large diameter mooring components worldwide.
16A chain system is only as good as its weakest link
17Catastrophic Failures in Mooring Systems Possibly Put Floating Structures at Risk In early 2011, a single point mooring system for a deepwater Gulf of Mexico (GOM) project failed at the chain. Based on the investigation of this event and a review of historical events, BOEMRE is revising and re-issuing Safety Alert #259.The investigation determined that a 6 ¾-inch diameter, 862-pound chain link in the tether chain had fractured and separated near its butt weld. Analysis of the fracture indicated that the chain link had a weld repair and the fracture initiated in the middle of the weld. Three links of the 24-link tether chain were found to have weld repairs.
18Mooring Line Failure - 2Brittle fracture caused by reversible temper embrittlement (RTE) during shackle heat treatment
20FPSO Sheathed steel wire rope Mooring Line Installation vessel deployment line damaged HDPE coating on mooring line, exposing wireCan the cathodic protection reserve cope over life cycle - No CostCan local repair be carried out – Minimal costMust the rope to be replaced. –Very expensive repair.
21Polyester Mooring Ropes Strand Ends being Prepared for SplicingStrand Ends being Prepared for SplicingPolyester Mooring Ropes9 “Diameter Polyester outer sheathMain Strands 8 triple 1-1/2 “ 4RH Lay and 4LH LayMain Strands 8 triple 1-1/2 “ 4RH Lay and 4LH LayStrand ends being prepared for splicing Eye to Link
22Other mooring line Issues Chain to Rope Transition Link misassembly which caused damage to one link and line:Are the other 9 links and lines “damaged” if their links wrongly assembled?Deepwater and Ultra DW - Lead Time for replacement componentsVery limited manufactures, propriety information, installation spread availability, unique designs, new engineering for repair procedures, timing and logistics
31Hull Issues External Hull Sacrificial - Anode Loss in Transit Paint peeling on side shell – Damage or WarrantyShip Hull Bilge keel damage Cause under investigationSterntube seals leaking – Damage or maintenance issue
32Topside Industrial Process Systems Gas Turbine Gas generator blade - Accelerated CorrosionFlare Tower insulation loss – manufacturing defectBlade keeper parting FPSO off India – OEM Facility in USAMultiple Gas Turbines to OEM in HoustonCompressor module FPSO North Sea - although built and installed as module repairs required entire compression unit to be removed – Massive increase in repair cost
33Gas Turbine – Gas generator blade damage Hot corrosion caused by combination of sodium & sulphurSulphur from high sulphur dieselSodium from seawater – air intakes ingest spray.Question on other units :Aggressive deposits form before blade material corrodesIs contamination damage &/or is dismantling, cleaning, rebuilding & retesting covered ??
34Fire on gas compression module Entire unit has to be removed for repairs
35Loss of Station keeping FPSO with central turret / drag chain systemFPSO thruster operation is required to maintain headingMultiple risers umbilicals / flowlinesFailure of heading / station keeping & mooring systemsBrief electrical power failureExcursion beyond dynamic riser & umbilical operating limits
36First FPSO Full Field Development ‘Gryphon’ North Sea 1993
38Loss of Station keeping - Major Event Extensive damage to risers, subsea facilities and turretExtended repair period due to specialist equipmentFPSO has to be removed to drydock for repairsField restoration expensiveVery large LOPI Claim - well in excess of the Physical Damage
39Costs - Construction Examples Flexible Riser Failure ,000, ,000,000Mooring Line Failures ,000, ,000,000Turret Weld Failures ,000,000Bilge Keel Cracks ,000,000Thruster Seal Failure ,000,000Fire Main Leaks ,000,000Turbine Corrosion ,000,000Anode Failures ,000,000
40Costs - Operating Examples Loss of Submerged Mooring Buoy ,000,000LOPI ,000,000Loss of Station Keeping ,000,000LOPI ,000,000Fire in Gas Compression Module ,000,000LOPI ,000,000Failure of Quick Disconnect Turret ,000,000LOPI ,000,000