Following the above principles is essential to the front
end planning for determining and defining, to the
greatest extent possible, future real time events that
will occur during system installation and operations.
In many cases, the necessary front end planning in
the design cycle was not coupled to the concept of
operations. When this decoupling occurs the results
can be catastrophic to the overall project viability both
economically and technically.
Marine assets and equipment exist in today’s
marketplace to provide for an effective installation of
most any of the alternative energy systems being
proposed. However, costs are high due to market
pressures from the oil & gas and telecom industries.
Operational expenses are high due to increased
demand for assets; hence the required human
resources are stretched. Additionally, increased cost
of consumables, such as marine gas oil, has
significantly increased daily operational cost.
Turnkey day rates for submarine cable installation
assets are expected to remain in the $85k to $110k
range for the next 2 – 3 years. Turnkey day rates for
OCV’s with heavy lift and subsea capability will remain
above $100k per day for the foreseeable future. Day
rates for tugs & barges are in the $20k - $35k range.
Suitably sized DP offshore supply vessels (OSV) are
around the $35k - $45k. Alternative energy project
planning should plan on these day rates accordingly
when considering installation costs and schedules.
With rates such as those mentioned above, it may be
cost effective to charter a suitable vessel of
opportunity, such as the OSV or tug & barge or both,
and convert the vessels with the required deck
equipment and configurations to support installation
requirements. After the project and procured
equipment can become part of an asset sale or placed
in storage for future installations.
In either case there are companies available that can
provide the necessary expertise for all project
functions. Vendor sourcing and vetting is a critical
part of ensuring the services advertised are what will
be delivered. Project documentation will need to be
written, reviewed and approved. Procurement
documentation such as SOW, RFP and contracting
will be required. Client representation during the
project operations is a crucial part of the project
execution. All of these elements need to be provided
to ensure a successful, on time and in budget project
implementation.
Given the number of options it is very important the
installation planning be implemented very early in the
project process. If there are options to be considered
with regard to site selection, installation issues should
be considered in the decision matrix. Good upfront
planning can reduce the number of days of offshore
operations and provide an opportunity to control the
cost installation. In addition, it is important to fully
evaluate the installation options and methodologies in
view of the Life of Field Service (LOFS) strategies.
Installation decisions can significantly impact the
LOFS cost – both positively and negatively.