OT: New $1.5B crane
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    Default OT: New $1.5B crane

    Heerema Unveils World's Largest Offshore Crane Vessel in Singapore – gCaptain

    That is quite an investment, the market must be a lot bigger than I imagined.

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    I was looking at their page earlier. Being able to tandem lift 20,000mt (about 50% more than Thialf) is going to open up a pretty large market I'd think.

    Sent from my SM-G973U using Tapatalk

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    Lots more technical details.

    Sleipnir Semi-Submersible Crane Vessel - Ship Technology

    Installing the cranes:

    YouTube

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    With lifting capacity like that where does one find rigging? What's the practical limit to flemished wire rope ends?

    Sent from my SM-G973U using Tapatalk

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    How much money do you have? The day rate for these things is well over $1 million. This crane is probably $2 million/day.

    IIRC A 13,000 MT single derrick crane was commissioned 2-3 years ago.

    The really amazing part is not the lift capacity, but the fact that they can place the load on top of a floating spar. The crane and the spar are moving up and down continually while it is being placed. But they can close the gap in a controlled fashion. The magic of computers.

    Over the course of the last 10 years or so the industry has moved to single lift topsides. That has created a demand for some rather amazing cranes.

    It would be interesting to know when this crane was ordered. I spent most of my career doing upstream work for this sort of downstream work. Neither I nor any of my friends can get work now because no one wants to produce $70/bbl production cost oil in a $55 price environment. So all anyone is doing is finishing the projects which were approved before the price crash.

    I did a *very* minor bit of work on St. Malo in the GoM before Chevron bought Unocal. I met the subsea systems manager for a nearby Chevron discovery called Jack while waiting for the bus in 2007. He was buying the stuff that sits on the sea floor. No wells, no surface facilities. Just pipes and valves. He had a $2 billion budget and a 6-8 year completion schedule. Chevron brought Jack, St. Malo and a 3rd field on line a few years ago using a Floating Storage Production and Offloading (FSPO) ship. The wells are in 9000 ft of water so a fixed platform is physically impossible. They use ships which can disconnect from the riser when a hurricane is coming. The FSPO cost $7.5 billion. So a ballpark estimate is that it cost over $13 billion to produce the equipment for the 3 fields. and probably another $3-5 billion to drill the production wells using a drill ship that rents for over $400,000 per day. Typical well costs in deepwater are in the $50-150 million range.

    My standard question is, "How many welder, fitters and machinists do you think you'd have to hire to spend that much money? In the current price environment there are a lot of people facing layoffs when their projects get completed.

    I started in the industry in 1982 when "deepwater" was anything greater than 600 ft. I was very proud that we had no accidents despite a 15x increase in water depth. And broken hearted by Macondo. The latter part of my career was spent making sure such things did not happen.

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    Its hard to grasp the size with it sitting in the water. Doing rough math the deck is about 6 acres. 2.4 hectar's

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    off of the original topic a little bit how do you have a 9000' riser? its incredible what money and knowledge and labor can do.

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    I was mistaken about the Jack/St. Malo FSPO, it's a semisubmersible, not a ship. I couldn't find any information about the risers for it. I included a picture of it with some houses for scale to give some idea of how big it is.

    The image I recalled is actually for Stones which is a ship. The semisubmersible may be able to withstand a hurricane. In which case they would simply close the valves at the sea floor and transport the crew to shore by helicopter. The ship detaches and steams away until the hurricane passes.

    At a certain depth it is no longer possible to anchor an FSPO, so it is a dynamically positioned ship.

    Stones is the world's deepest water field at 9576 ft. Jack/St. Malo is only 7000 ft of water.

    You have not seen a scramble until you see a supermajor shutdown for a hurricane. There is a *lot* of work that has to be done very quickly.

    Here are some scans from a couple of booklets about the work. The Jack/St. Malo fabrication ran up 3 million hours without an accident.


    The Stones FSPO connection

    photograph-6-.jpg

    The Stones buoy

    photograph-5-.jpg

    The Jack/St. Malo semi in transit

    photograph-3-.jpg

    An artists conception of the Jack/St. Malo production setup.
    photograph-1-.jpg

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    Quote Originally Posted by rhb View Post
    How much money do you have? The day rate for these things is well over $1 million. This crane is probably $2 million/day.

    IIRC A 13,000 MT single derrick crane was commissioned 2-3 years ago.

    The really amazing part is not the lift capacity, but the fact that they can place the load on top of a floating spar. The crane and the spar are moving up and down continually while it is being placed. But they can close the gap in a controlled fashion. The magic of computers.

    Over the course of the last 10 years or so the industry has moved to single lift topsides. That has created a demand for some rather amazing cranes.

    It would be interesting to know when this crane was ordered. I spent most of my career doing upstream work for this sort of downstream work. Neither I nor any of my friends can get work now because no one wants to produce $70/bbl production cost oil in a $55 price environment. So all anyone is doing is finishing the projects which were approved before the price crash.

    I did a *very* minor bit of work on St. Malo in the GoM before Chevron bought Unocal. I met the subsea systems manager for a nearby Chevron discovery called Jack while waiting for the bus in 2007. He was buying the stuff that sits on the sea floor. No wells, no surface facilities. Just pipes and valves. He had a $2 billion budget and a 6-8 year completion schedule. Chevron brought Jack, St. Malo and a 3rd field on line a few years ago using a Floating Storage Production and Offloading (FSPO) ship. The wells are in 9000 ft of water so a fixed platform is physically impossible. They use ships which can disconnect from the riser when a hurricane is coming. The FSPO cost $7.5 billion. So a ballpark estimate is that it cost over $13 billion to produce the equipment for the 3 fields. and probably another $3-5 billion to drill the production wells using a drill ship that rents for over $400,000 per day. Typical well costs in deepwater are in the $50-150 million range.

    My standard question is, "How many welder, fitters and machinists do you think you'd have to hire to spend that much money? In the current price environment there are a lot of people facing layoffs when their projects get completed.

    I started in the industry in 1982 when "deepwater" was anything greater than 600 ft. I was very proud that we had no accidents despite a 15x increase in water depth. And broken hearted by Macondo. The latter part of my career was spent making sure such things did not happen.
    Very interesting industry lesson rhb. I wonder how many rig owners would face up to a $2M/day crane barge and crew vs how many would dissolve, abandon the rig and change names. Even with the big exploration numbers quoted, no return on an old rig that needs that big of a crane to demob.

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    Default This is the super major league

    Quote Originally Posted by jmead View Post
    Very interesting industry lesson rhb. I wonder how many rig owners would face up to a $2M/day crane barge and crew vs how many would dissolve, abandon the rig and change names. Even with the big exploration numbers quoted, no return on an old rig that needs that big of a crane to demob.
    When Rita and Katrina trashed a large number of platforms, a company made a very low cost (under $1 million IIRC) vessel out of a some barges that could lift a platform off the seafloor and move it to deepwater for disposal.

    The companies which rent cranes like this are called "supermajors", Exxon, BP, Chevron, Shell. Not sure if Total ranks as a supermajor. Hard to say about CNOOC and the other Chinese companies.

    You don't need this lift capacity to decommission a platform, you need it to place an entire topsides package on something like a spar. I can't find the brochure about Perdido, but I'm pretty sure Shell did a 10-12,000 ton lift to place the topsides on the Perdido spar. I think McDermott did the lift using a pair of cranes.

    If you're spending several billion dollars developing a field, $5-10 million for the crane rental is pocket change. And if you're spending that on crane rental it's because it will save a few million.

    About the time I started working for Unocal, they signed a contract to lease a drillship for 5 years at a day rate of $425,000/day. That was a "take or pay" contract. It was insane as they only had three deepwater prospects. The CEO was a former refinery engineer who literally "bet the company" on succeeding when the chances of failure were 10:1. When he became CEO his first action was to sell off downstream (marketing and refining) because it was a "lousy business". I attended a small meeting with him and spoke with him afterwards. He had absolutely no comprehension of statistics and risk management. In the meeting he said he wanted to generate a 15% ROI like they did in Silicon Valley. This was in 2000. Historically oil companies have never done much better than 5-8% ROI. Better than utilities, but not as good as manufacturing. But a well run oil company is a very reliable investment.

    The amount of money required for a deepwater development is so large that *no* company can afford to do it alone. Not even Exxon can afford to drill $225 million wells at 100% ownership. When Blackbeard was abandoned at 32,000 ft, 3000 ft short of the objective because poor pore pressure prediction work had run the well out of hole, Exxon wanted to try again. But the partners said no. Blackbeard is the most expensive well I know of, though I worked on plenty which were in the $50-150 million range. Blackbeard was in 20 ft of water, but it was very deep and the pressures were very high.

    Slippery Joe and Fast Eddie, Inc. are not players in this game. In the US they would not even be able to buy an offshore field. They would not have the financial capacity to relieve the seller of liability. Neither the seller nor the government would agree to it.

    My biggest concern is the unemployment that is about to hit the people who build all this stuff. No one is looking for $70/bbl oil when they can get it for $6 in West Texas. Once the the contracts signed when oil was over $70/bbl are completed lots of machinists, welders and other very high skill craftsmen will be out of work.

    My friends and I worked upstream. We were let go years ago. We're getting close to the downstream fabrication people getting let go. There is an 8-10 year lag between finding oil and producing it in deepwater. That's how long it takes to design and manufacture the equipment required. It's a few months onshore.

    An addendum:

    That crane was not built on speculation. They had over 85% of the cost of the crane covered by contracts with AAA+ companies who wanted it and were willing and able to pay if they did not use their share of crane time. The Unocal drillship was built and named "Discoverer Spirit" because the Spirit subsidiary of Unocal signed a contract that paid for building it. There were periods of time when you could make $50-100,000/day renting it out when you didn't need it. There were other times when you lost $425,00/day for lack of work.

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