Offshore Continues To Drive Repair Business Around The World

Japanese offshore engineering company Mitsui Ocean Development (MODEC) has been awarded contracts worth $300 million (Y35 billion) for four FPSO/FSU units.

Three companies have awarded the contracts: Australia's BHP Petroleum; Mexico's state-owned Petroleos Mexicanos (Pemex); and Marathon Petroleum Gabon (two contracts), an affiliate of Marathon Oil.

MODEC has slated three of the conversion projects with Jurong Shipyard Ltd. (JSL). The companies have cooperated on several FPSO conversions, which is a key consideration in light of the spate of technical-related delays which have recently surrounded this sector. The Pemex contract involves 357,600-dwt tanker Juno, to be arranged with a 2.2-million barrel storage capacity as a floating storage unit (FSU). For BHP Petroleum, JSL will upgrade FSU Shua Venture 1 — which on completion will be renamed Modec Venture 1 — to full FPSO status, with the installation of additional processing modules. The vessel is expected to be ready for service by next spring.

Regarding the Marathon Petroleum Gabon contracts, an additional two projects have been secured by MODEC in conjunction with Japanese trading house Nissho Iwai Corp.

The first involves the conversion of 138,540-dwt tanker Anitra into a one million barrel FSU. This project is also to be carried out by JSL.

The second project calls on U.S. conversion specialist Texas Drydock Inc. (TDI), recently bought by Halter Marine, for the conversion of the drilling platform Ocean Ruler to a jack-up production unit. Both projects are expected to be completed by the end of 1997. Spain's Astilleros Espanoles (AESA), Cadiz, has been awarded another contract from the Brazilian offshore market — a $145 million contract to convert a VLCC into a floating production, storage and offloading (FPSO) unit.

The 300,000-dwt tanker, which has not yet been specified (but is expected to be one of the Petrobras fleet), will be converted at the AESA's Cadiz yard. Awarded by Esmeril, which will operate the converted unit on behalf of Brazil's state-owned Petrobras, the vessel will be redelivered in November 1998.

After delivery, the vessel will be moored in waters 3,300 ft. (1,000 m) deep on Petrobras' Roncador offshore field.

Late in the spring of 1997, the Cadiz yard delivered converted FPSO Petrobras 32, which was formerly VLCC Cairu, six months ahead of schedule.

Later this year, the yard will also deliver Petrobras 26, a production platform being converted from drilling rig Iliad. Singapore's Hitachi Zosen has become the latest large yard from the Republic to win an FPSO conversion contract, with the conversion of the 1978-built conventional tanker, the 131,484-dwt Proster (formerly the Enalios Ethra) which was due to arrive at the yard this month. The conversion project is to be carried out for Mitsubishi Heavy Industries (MHI), which, in a joint venture with Switzerland's SBM Inc., has a contract with Japan Vietnam Petroleum Co. (JVPC) to supply a FPSO for the Rang Dong Field off the Vietnamese coast.

Recently completed at Singapore's Keppel Shipyard (Tuas) was the conversion/refit of the 59,642-dwt St. Vincent-registered conventional tanker Red Teal, which will be renamed Armada Pekasa for its new role as a FPSO off the Malaysian coast for Malaysian oil giant Petronas. The $12 million contract, which saw the vessel being converted to a FPSO, was completed in late-June, after three months of work.

Houston's Falcon Drilling has awarded the $60 million conversion of 129,077-dwt bulk/oil carrier Coastal Golden — the project to be named Peregrine VI — to the new Blohm + Voss (B+V)/Lisnave joint venture.

Negotiations for the contract, which will see the vessel converted into a drilling ship, were originally started between Falcon and Hamburg's (B+V). At that time, Lisnave and B+V were negotiating a partnership, which, under the restructuring plan for the new Lisnave, has paved the way for the present situation where ThyssenWerften GmbH (owners of B+V) became a 20 percent shareholder in Lisnave. Therefore, B+V advised Falcon of the advantages of having the project carried out at Lisnave's Mitrena yard.

Work involves removal of the existing stern-driven power station and replacing it with a new diesel-driven unit; installation of a drilling package (including steel structure for moon-pool and intermediate decks); installation of a dynamic positioning system; accommodation work (construction of additional cabins and heli-deck); tank modifications; and installation of four 80-ton deck cranes.

Circle 286 on Reader Service Card The contract also includes an option for the conversion of another two ships, which will be named Peregrine VIII and Peregrine IX. Birkenhead's Cammell Laird has also won a conversion contract from Falcon Drilling, involving the $23 million conversion of 7,746- dwt Deepsea Worker (to be renamed Peregrine VII) from a salvage vessel to a dynamically-positioned drillship. This contract is the largest to be undertaken at the yard and provides a timely fillip for the company's stock market ambitions.

The vessel arrived this May. When completed, it will have been upgraded and lengthened, with a 104-ft. (31.7-m) mid-body section installed, as well as a moonpool and a new drilling substructure. Other work will include: the fitting of full length sponsons 8.2 ft.

(2.5 m) on each side); installation of a new drilling derrick; and complete design and installation of a new drilling system.

Meanwhile, Singapore's Keppel shipyard has won a conversion project from Falcon Drilling, converting a 12,000-dwt hull, to be named Peregrine, to a drillship. The contract, which is valued at $43 million, is scheduled to be completed by mid-1998.

Poland's Gdansk Shiprepair Yard (Rementowa) has drydocked the 67,436-dwt NIS-registered tanker Petrotroll for conversion to a shuttle tanker.

Owned and managed by Golar- Nor Offshore AS (Trondheim), the vessel will feature two new compartments, a new forward bowthruster room, a powerplant STB side stern, a C02 system and new exhaust ducts, pipes, cabling, etc.

Anew 1,000-kW bowthruster will be delivered by Ulstein. In the new powerplant, a 1,000 kW Caterpillar generating set will be installed. The dynamic positioning system, which was delivered by Autronica, will also be installed in order to improve navigation.

Some repair will be carried out as well, including extensive overhaul of machinery, fitting and electronics. In addition, a new tank measurement will be installed.

All work will be supervised by Det Norske Veritas surveyors. The U.K.'s A&P Group has won what could be the largest conversion contract to be placed this year from the conventional marine industry. A&P Tyne has been tapped to convert 11,403-grt RoRo ferry Ambassador 11 to a cruise casino ship for Stirling Shipping One, in a deal worth $23 million. The 1970-built vessel arrived on Tyneside in August.

Work will involve the removal of 300 tons of steel, to be replaced by 400 tons, helping to create four casinos as well as restaurants, bars and executive suites. In addition to the major steel work, the vessel will be upgraded to meet the latest SOLAS regulations as well as DNV's strict class rules for cruise vessels. It is expected that the vessel will be at the yard for four to five months, with the scheduled date of re-delivery set for January 3, 1998.

Meanwhile, Belfast's Harland & Wolff's (H&W) Ship Repair & Marine Services Division, and Mivan Marine, are to fly a team to Florida to make an early start on the first major cruise ship contract won by the joint venture, established earlier this year.

The team will board P&O Cruises' Arcadia at Fort Lauderdale and start work afloat during its voyage back to Belfast. The ship is expected to arrive at H&W's yard by the end of this month and will undergo a major refit, enhancing its facilities for the U.K. passenger market. Other work to be carried out by H&W includes drydocking and general repairs (mechanical overhaul and survey, as well as a complete hull cleaning and painting).

Mivan Marine has been contracted to carry out major refurbishment of the public areas and cabins, including the creation of new public spaces, and the upgrading of other public areas.

Arcadia is expected to leave Belfast in early December, commencing her cruise program with a 12-night Christmas cruise, followed by a maiden three-month world cruise, which is scheduled to leave Southampton on January 5, 1998.

Swedish ferry owner Gotland AB has placed a two-ship order with Bremerhaven's Lloyd Werft to upgrade and refit the two ferries, 23,775-grt Stena Felicity, which is to return to its original name, Visby; and 16,829-grt Sally Star, which will be renamed Thjelvar. Both vessels, which will also be upgraded to the new SOLAS regulations, will be used on the Gotland/mainland Sweden service. It has also been announced that when Lloyd Werft completes the upgrading and lengthening of the 39,213-grt cruise vessels Windward and Dreamward between January 15 and May 12, 1998, they will be renamed Norwegian Wind and Norwegian Dream, respectively.

The two new mid-body sections have been sub-contracted (under guarantee) to Schichau Seebeck Werft, despite this yard being bankrupt under the recent Bremer Vulkan closure.

For more information on the repair companies and equipment suppliers mentioned in this article, circle the appropriate number on the Reader Service Card in this edition.