Downtime is a dirty word to those operating in the oil and gas industry, and measures are ever increasingly put in place to ensure this kept to the absolute minimum. This becomes trickier when your production site is situated tens or hundreds of kilometres offshore, as receiving the necessary components, parts or people can often take some time.
It is important, therefore, to have a logistical service that can offer a rapid – as rapid as you can be at sea – and reliable service to the offshore operators.
“Offshore logistics is misinterpreted sometimes. Just to be concerned about the boats, barges and support services in the water misses the other side. At GAC we provide support onshore as well, and have bases in Qatar, Bahrain, the United Arab Emirates, Oman, two in Saudi Arabia and in Kuwait,” says Ismayil Manzil, group energy logistics manager, GAC.
“We assist the offshore exploration and production companies in the Middle East by bringing materials from all over the world, and by mobilising people, vessels and equipment in a fast and efficient manner.”
Manzil explains that GAC provides onshore storage facilities for equipment set for offshore deployment in the local vicinity, meaning they can significantly cut the amount of time it takes to deliver much needed components. The company has around 30 vessels dedicated to the Persian Gulf region, with 100% in use today with various specialties.
“We have specialist boats supporting operations in Qatar, Saudi Arabia and Oman, and we have the SSS (ship supply service) in Bahrain and the UAE. For heavy loads, which we have been doing for approximately the last 30 years, we put it onto a sling and a hook attached to the ship or platform then picks this up – it’s pretty easy,” states Manzil.
One barrier to deliveries is the weather, as high swells at sea make transfers difficult and dangerous, if not impossible.
“During rough weather we suspend our operations and keep a close eye on the forecasts, and will go with the weatherman’s instructions. For example, in the last few weeks we have had to suspend a lot of operations in the region due to the high winds and swells at sea,” adds Manzil.
Danish firm Scan-Trans also caters to the offshore oil and gas industry in the Middle East, with its regional headquarters being located in Dubai, UAE. The company likes to compare itself with Denmark’s Viking ancestry, who they claim were Europe’s first modern transcontinental merchants.
“We trade our fleet worldwide, which very much caters to the oil and gas industry. Many drill sites today are located far away from big commercial ports, so by having the flexibility to offer a direct service in small and/or complicated areas of the world I believe we are providing a valuable service,” says Christian Monsted, managing director Dubai, Scan-Trans.
The logistics specialists currently operate a worldwide fleet of roughly 25-30 vessel, with about four to five located in the UAE over the past month.
“Scan-Trans use smaller box-shaped multi-purpose tween deck or heavy lift ships, enabling us to avoid the many calls at intermediate ports that can extend the duration of the voyage and cause serious problems for the client,” explains Monsted.
Due to the ongoing offshore projects in the Persian Gulf, Scan-Trans states that it has not been too heavily affected by the recent global downturn.
“At the moment there is still quite a lot of strong activity in the region, so at present we do not see a huge risk to the sector. Of course, freight rates have decreased because of the general market decline, but since this niche market can only be serviced by a limited fleet, then we still see reasonably healthy rates,” says Monsted. “Our core business is handling and transferring oversized materials and equipment, and in our field there are very few competitors with the same local presence. This year has been pretty strong so far, and we hope that oil prices will settle somewhere on the US$60-70 level, which should keep projects going,” he concludes.
For GAC, their company strategy remains at the forefront of riding out the economic storm. “People value safety of their business, and we stick to very strict safety regimes which keeps us one step ahead of our competitors. We have excellent relationships with our clients who often we have worked with for many years, so they know us in the good times and through the bad times,” explains Manzil.
“We have not seen a sharp decline but we could see that it was coming down. Now people are thinking wisely, I believe, not only as customers but as competitors as well, and it’s a good time to review what we have done in the past, what we do now and what we should do in the future,” adds Manzil.
For the foreseeable future, Manzil states that the company’s strategy is flexible in order to cope with both the good times and the bad times.
“We are marshalling our troops at the moment through the bad times. We have trimmed down our growth, which we expect to be in the range of 10-13% for GAC in the Middle East this year,” he concludes.
The offshore industry will always demand logistics do be done in the most expedient and efficient way. As the oil price bounces through the $60 barrier, expect to see more activity off a coast near you.
Human Logistics
Transferring people to offshore stations has its own unique set of challenges and requirements. Many factors may be involved, including speed, safety, number of people, types of personnel and, of course, cost.
For example, a crew transfer via helicopter is undoubtedly the fastest method, but the costs are significant, safety has become an issue and you are restricted on small numbers of personnel at one time. One company offering an alternative is Offshore Solutions, who specialise in supplying a gangway transfer system that allows safe boarding of personnel from a vessel.
“The main challenge for us as a company is convincing the offshore industry to use vessel transfers rather than helicopters, which are viewed as the norm,” says Graham Mapes, business development manager, offshore solutions. “For transferring people via our gangway, we really don’t see any challenges for personnel.”
Offshore Solutions strategy for 2010 will see a major effort on marketing to enforce our branding and product recognition, says Mapes. Focus will continue on following prospects in the North Sea, Middle East and Far East, and the company will also tackle North and West Africa.
“From a sales perspective it has been a quiet six months, but interest is increasing in the offshore access system (OAS) and we predict that in the second half of the year we will see an upturn, with increased sales and leases towards the end of the year moving into 2010,” asserts Mapes.
