Offshore logistics is the lifeblood for offshore installations bringing supplies, providing standby services for emergencies, and ferrying freight and personnel to and from platforms. It's a multi-million dollar market requiring massive investments to keep high-tech workboats and helicopters operating in all weather 365 days a year.

As the UKCS is maturing, so too are the companies operating in the harsh environment of the North Sea.
Since the early days, stand-by vessels, now known as emergency response and rescue vessels (ERRV), have advanced greatly and provide sophisticated, frontline cover for thousands of workers in the most dangerous conditions. Many of the vessel operators have been proactive in the development of this critical aspect of UK offshore safety, and the industry currently provides employment for 3,000 British mariners.

Average annual charter costs run at about US $ 2.5 million, but it has to be borne in mind that ERRVs also provide other vital services such as anti-collision surveillance, pollution control and oil recovery, emergency towage, and tanker assist duties.

And some vessels are capable of offering even more. Multi-function vessels, such as North Starís Grampian Frontier which supports operations West of Shetland, provides customers with additional support including fire-fighting, tanker assist/emergency towage, and subsea remotely operated vehicle (ROV) operations.

With value for money being a key issue in the North Sea, vessel operators often find themselves serving more than one customer, with their ERRVs providing cover for two or more installations.

While many predict a shrinking marketplace, sharpened by BP's Jigsaw project which would see some ERRVs replaced with helicopters, North Star Shipping sees opportunities ahead. It has spent US $39 million on four new emergency response and rescue vessels, adding to its existing 26-vessel fleet. Callum Bruce, Craig's managing director, said he is not afraid of building new supply boats speculatively. "We believe that fresh investment in the North Sea, the emergence of new entrants and the industry's desire to bring forward the undeveloped and undiscovered reserves create opportunities on which we aim to capitalize by providing the most effective, modern and cost-effective services for customers operating in the North Sea," he said.

The new vessels are 158.26 ft (48.25 m) long with a 36-ft (11-m) beam and are designed by IMT of Montrose. They are to be built by Spain's Astilleros Balenciaga shipyard.

The new vessels will be fitted with the latest rescue and response technology and will provide a dedicated deck for treatment and comfort of survivors rescued from the sea.

Bruce added, "We consider these new builds to be vital to the modernization of our fleet and are committed to both building and purchasing modern, second-hand tonnage. We have been pre-eminent in the development of this critical aspect of UK offshore safety and aim to maintain our position as market leaders by further enhancing our fleet."

Last year North Star spent $48 million on two multi-function workboats, the Grampian Explorer and Grampian Surveyor. One is now providing ROV support off West Africa, and the other is providing platform supply services in the North Sea.

More recently, Total placed a 3 year supply deal with the group for provision of oilfield products to the Alwyn and Central Graben areas facilities plus the St. Fergus gas terminal and its Altens offices in Aberdeen worth around US $900,000. The deal was won after an electronic auction process with applicants bidding on line.

Going Dutch

Sharing logistics services across installations has been a key element among platform operations in recent years.

Last November Bristow Helicopters clinched a search and rescue helicopter contract covering eight oil and gas companies operating on the Dutch continental shelf.

BP Netherlands Eni, Gaz de France, NAM, Petro-Canada Total, Unocal and Wintershall commenced the 5-year SAR contract with Bristows last November using a Super Puma Mk2 helicopter based at Den Helder, which was re-positioned from Aberdeen, Scotland. The deal has options for another 2 years.
"This particular helicopter is one of the most advanced SAR aircraft available anywhere in the world," Bristow said.

Initially the deal involved provision of 12-hour cover but has since moved into providing 24-hour cover, 7 days a week, with a daylight light response time of 15 minutes and 60 minutes at night. Day-to-day flights are controlled by the Dutch Coast Guard. No contract value was disclosed although Bristow did indicate it was a "multi-million" deal.

Earlier this year Statoil and Norsk Hydro awarded CHC Helicopter Corporation major contracts for flight services to offshore installations worth US $230 million. Hydro's 7-year contract with options awarded to Helikopter Service - CHC's Norwegian subsidiary - comes into effect Jan. 1, 2005, and involves carrying between 40,000 and 45,000 passengers annually, Hydro said.

Statoil issued three contracts to CHC covering flights to the Norwegian Sea Åsgard, Njord and Draugen platforms commencing July 1, 2004, for 5 years with options for another 5 years.

Neil Calvert, CHC's European operations managing director, said, "These new contracts represent a major commitment by Statoil and Norsk Hydro to enhance safety, efficiency and flexibility by utilizing both the MK2 and S-92."

For Statoil, CHC is due to operate two Super Puma MK2s and a MK1 plus a new Sikorsky S-92 from Kristiansund, one Super Puma MK2 from Floro, and two Super Puma MK2s from Bergen.
For Hydro, CHC will operate two new Sikorsky S-92s and a Super Puma MK2, also from Bergen.

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