It’s been more than 40 years since the first ever oil floating production storage and offloading (FPSO) vessel was deployed in the Spanish Mediterranean. Since then, this method of oil and gas production has flourished; there are currently more than 270 vessels in operation worldwide, and that number is projected to expand by as much as 17% by 2025.
The growth in floating units, amid a turbulent macro-economic backdrop, reflects the investment major companies in the sector are making in order to capitalise on new production opportunities. Floating production is particularly appealing in areas of shorter-term supply where it doesn’t make economic sense to build a fixed platform, which normally operates for 20 to 30 years, or where there may be physical dangers in doing so. The growth also reflects the unique benefits that a connected floating production vessel can offer at various stages of the production lifecycle, offering efficiencies that make the total cost of operations more attractive.
The ability to gain insight into granular aspects of machine performance means that operators can diagnose problems before they become an issue, and take restorative measures. The infrastructure can also enable AI capabilities in order to build data sets over time and predict when maintenance or replacement will be required, which aids the goal of getting more out of the investment.
The Trend Towards Floating Production Vessels
In the current market landscape, oil and gas companies prize flexibility. Sudden shifts in demand for oil and gas products can make the case for expanding into new wells hard to justify in instances where the cost benefits are marginal. While producers can’t control the demand side, they can seek greater efficiency on the supply side to present a more compelling case for pursuing marginal or deep-water production.
In this regard, floating production is beneficial as it enables the producer to optimise an FPSO with reduced start-up time, and then move the vessel to different oil fields in order to benefit from a nimbler approach. Even if the risk-reward of the individual site is limited, the ability to produce from multiple wells over its lifecycle significantly increases the ROI of commissioning the vessel.
It’s not just the mobility of the FPSO that’s attractive. The ability to operate them as greenfield projects means the units can be equipped with the latest in digital equipment in order to maximise the efficiency of operations. This approach enables the producer to realise massive cost savings.
Extracting the Value of Connected Production
The rapid progress of digital and automated technologies has transformed the role an FPSO can play within a company’s wider production operations. To help generate the maximum value from a connected vessel, there are several aspects for decision makers to consider.
1. Optimising remote operations
As the oil and gas sector recalibrates following a year of global lockdowns and enforced social distancing, the ability to reduce the number of staff present at production sites has become a common objective. A connected vessel supports this goal by enabling relevant expertise to remain onshore and connect with the facilities remotely to manage routine maintenance and repairs.
A common example is where a fault emerges with equipment on the vessel. The production data from the ship’s Distributed Control System (DCS) can be fed back from the offshore site to an onshore data centre. The offshore operator is able to interpret the data and relate the issues directly to personnel onboard the vessel and work collaboratively to resolve the problem. Where further expert guidance is required, the offshore personnel can interface with expert engineers anywhere in the world using connected devices, such as augmented reality (AR) enabled headsets, without themselves needing to have deep expertise on the parts they’re repairing.
In addition to preventative maintenance, the connected vessel also enables a more predictive approach. Using the rich data from the DCS and analytics capabilities, a centralised management team is better positioned to plan ahead and schedule maintenance across its fleet of vessels to keep equipment operating at optimum levels.
This remote approach allows for rapid maintenance and resolution of nascent issues before they become more serious problems. It also reduces the potential dangers associated with having personnel on site in hazardous or unsettled conditions and saves money by reducing operational costs such as travel to distant locations.
2. Enhancing vessel networks for reduced downtime
The costs involved in operating a connected vessel can be significant and continue to run whether or not the vessel is operating. Unplanned maintenance on a floating production facility is quoted as costing 100 times the amount of that same repair onshore; therefore, the reliability and management of key production assets continues to be an area of critical focus.
A robust infrastructure layer can underpin effective operations on the vessels and dramatically reduce the risk of downtime. This includes the use of control systems, edge servers and IoT technology in order to analyse the performance of equipment (including separate OEM parts), improve asset utilisation and conduct preventative maintenance.
3. Reducing risk through OEM integration
Any production facility can contain equipment and skids from a wide number of different OEMs. Part of the challenge for the operators on a vessel is getting these different pieces of equipment seamlessly integrated during start up without delay.
A connected FPSO can be built from its foundations to ensure OEM equipment is integrated harmoniously. Our approach is to use interface management and standardisation of systems to drive coordination among the different OEMs involved. We develop an architecture in collaboration with the operator and ensure that all OEMs deliver their equipment using this framework. This approach reduces risks by having skids connected from the beginning of the project and using software to simplify ongoing management and communication.
Investment in FPSOs is likely to continue as leaders seek more flexible ways to service renewed global demand by capturing the potential value of oil and gas resources in challenging or isolated locations. Connected vessels help leaders deliver on this goal by taking a more agile approach to production and benefitting from reduced maintenance costs, enhanced monitoring of critical assets and better utilisation of personnel.
