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Rig Stacking Strategies

DNV-GL Rig Owner’s Committee Meeting


Houston - 27 April 2016

Chip Keener / Mike Van Gemert


Integrated Rig Stacking Solutions LLC

www.keener-consulting.com 1
Rig Stacking Strategies

Industry Cycles
The Risks
Looking After the Rig Systems
Warm Stack vs Cold Stack
The Cost of Responsibly Stacking
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Oil Price vs Industry Build

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Jackup
Floater

Inflation adjusted
Layup Risks – Startup Time / Asset Valuation

1. Corrosion – hull, machinery, piping, electrical systems


• VCI’s, dehumidification, cathodic protection
2. Weather Events – particularly cyclonic storms
3. Certification – dates of reference
• IMO MODU Code / Flag State – keel laying
• CLASS – shipyard contract … or reactivation
4. Control Systems – drilling systems, well control, vessel
management, power management, dynamic positioning
• 1000’s of parameters (software & several 100 PLC’s)
• 3-6 months of commissioning with the OEM’s
Rig Systems – A Holistic View
Anchor Bulk Cement Mud Drilling
Winches Controls Controls Controls Switch Gear

Load &
Stability
Dynamic
Positioning Drilling CCTV
Safety & Controls
Automation Drawworks
Top Drive
Rotary
Gyros & Power Power Slips Drilling
Transducers Mgmt Pipe Handler VFD/VSD
Fingerboard
Roughneck
Manipulator
Guide Arm
Tongs
SCR Riser Blowout Trolleys
Monitoring Tensioners Preventers Riser Catwalk
Rig Systems – Software & Integrations
Stewart & Stevenson GE Siemens L-3

Bridge
Multillin PLC Remote Panel /
Engines RTDS Console
Controller Controller PC
Networks & Protocols
Cables & Terminations

Dependencies, Interconnections, Configurations


Rig Systems – Challenges

• PLC batteries (hold programs & configurations for automation)


• Loss of power exposes loss of configurations
• Inventory and escrow of all key systems compulsory
• Thousands of programs & devices
• Feed devices, encoders & sensors preserved
• UPS systems … (hold systems configurations & data logging)
• Cold Stack – remove batteries
• Short-term Warm Stack – energize key UPS systems
(e.g. PMS, DP & operational systems)
Rig Systems – Issues on Long-Term Stacking

• Some capacitors are not recommended for long-term storage


(typically used in power supplies & DC-DC converters)
• Batteries can discharge when energized & need periodic
replacement
• Batteries are susceptible to chemical & physical changes, ambient
conditions & leakage current
• Electronics are susceptible to contamination, corrosion, diffusion,
moisture absorption/extraction, condensation, embrittlement,
ESD & charge decay
• Computing devices are subject to loss of boot configuration
• Warm stacking requires periodic maintenance & inspections
Rig Systems – The Future with IBM

Leveraging IoT and Watson platforms


(management of control systems)

• Control network asset detection & configuration mgmt


• Cognitive analysis of state of equipment & alerts on anomalies
• Real time system status & return to service windows
Cold Stack vs Warm Stack

Warm Stacking correlates with a sustained crew


component, and expectation of vessel readiness
… though not always.

Cold Stacking implies unmanning of a vessel, and


presumption of neglect … though not necessarily.
DP Floaters – Warm vs Cold Stack
$’s
millions
Assumptions – Warm Stacking
$ 50,000/day per rig

$36.5

$20.6

$14.0

$10.7

Assumptions – Cold Stacking


$ 3,000,000 setup fee per rig (VCIs, dehumidification, monitoring, mooring)
$ 3,500/day mooring rental per rig
Months
$ 1,800/day insurance per rig
$ 18,000/day 8 man response team & services amortized across all the rigs
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Operational Readiness – Startup

Startup Planning is an extension of the Stacking Plan


• Un-preserving plan where necessary
• Deferred maintenance captured
• Startup requisitions prepared
• Certification obligations
• Employee recall list (training requirements)
• Warehouse receipts (e.g. riser / drillpipe / etc)
• Activation & commissioning routine
Comprehensive Integrated Services

Management & support services:


• project management & staffing
• guidance in maintaining sensitive equipment
(e.g. volatile memory, software management)
• counsel in the maintenance & suspension of
class & flag state certification
• underwriter engagement on insurance risk
• commissioning services on startup
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