DNV GL © 2016

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SAFER, SMARTER, GREENER DNV GL © 2016

Dec. 2016, Oslo,

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MARITIME

Protect Your Assets

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Lay-up seminar MOU - CEFOR

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Contents

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Market situation

A challenge ahead

New revised Class Guideline

Advisory V.S Class Service

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Market Situation

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Mobile offshore units in lay-up

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193 26%

20%

11%

20

10

50

40

%

500

100

200

#

0 0

300

400

30

2014 2015

+33.2%

2016 YTD

358

477

+85.5%

Number of laid-up offshore units

% of total fleet (right axis)

units in lay-up

Source: Clarksons

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Challenges ahead

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Extreme weather – Tor (2016.01.30)

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Jack up laid up

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Tug winch repairs

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Tug winch repairs

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Challenges we are going to face

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Summary of possible types of damages

Example of hull related degradation:

– Corrosion of empty ballast tanks

– Corrosion of hull below water line

– Extensive corrosion of propeller

– Organic incrustation of hull below water line

– Swelling of timber decks in external areas and

accommodation spaces

– Rotting inside accommodation spaces

– Corrosion of deck plates with standing water

– Corrosion of lower hull not protected by anodes in

transit draft - in particular special areas

Example of machinery and equipment degradation:

– Corrosion damage to liners, pistons, piston rings,

gears and crankpins

– Corrosion of valve spindles in lines carrying

seawater

– Leakage at brazed joints of pipelines

– Extensive corrosion of seawater lines

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The following types of damage are characteristic of laid-up or re-commissioned vessels:

– Corrosion damage to the impellers, housing, seals

and bearings of pumps

– Embrittlement of plastic pipes (drinking water and

pneumatic control system)

– Heavy internal rusting of the gears of winches and

deck cranes

Example of electrical system degradation:

– Oxidation of generator circuit-breakers

– Inter-turn short-circuiting of solenoid coils

– Oxidation of relays

– Malfunctions of measurement transducers

– Starting up problems with malfunctioning

regulators and control equipment.

– Electronic equipment start-up failures after

months without power.

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Guideline updates

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Prolong Survey Intervals for MOUs going into lay-up

Newbuild Vessel put on Lay-up

Preservation of drilling equipment, offshore crane

Drilling Equipment Re-commissioning

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Guideline updates

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Class vs. Advisory

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Classification Society

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Owner should notify the Society when the vessel is laid up or otherwise taken out of service for a period of

more than 3 months. A written notification by e-mail will be sufficient for the Society to change the status of

the vessel to “Laid Up”.

General

During lay-up, vessels shall be subjected to annual survey. The extent of the annual survey will be reduced

compared to main class annual survey, but shall cover watertight integrity, bilge system, fire hazard and

equipment in use. The following surveys apply for laid up vessels laid classed with the Society:

Annual survey of laid-up vessel will be carried out at required intervals. Vessels manned during lay-up shall

comply with class requirements regarding fire safety. The requirements may be limited to engine room areas

and any high risk area in use, assuming vessels are laid up in ballast condition and that the cargo area is

clean and gas free..

Maintenance and preservation during the lay-up period is not a class requirement, but will affect the scope of

the re-commissioning survey. If during the lay-up period the vessel has been preserved and maintained

according to a program accepted by the Society, the scope of the re-commissioning survey will be specially

considered.

There is no time limit for how long a vessel can be laid-up provided the required surveys as above are carried

out.

Surveys

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Survey schedule during lay-up

During lay-up the ship shall be subject to annual survey

Lay-up

4. Annual survey

Renewal survey

3. Annual survey

Annual Lay-

up survey

Annual Lay-

up survey

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Scope of Annual Lay-up Survey

Annual lay-up survey to be carried out at required intervals

In addition: units which are manned should comply with class requirements for

fire safety

The requirement may be limited to engine room areas and any high risk area in

use, assuming the ship is lay-up in ballast condition and that cargo area is clean

and gas free.

The scope of the survey will be reduced compared to the main class annual

survey, but shall cover:

– Watertight integrity

– Bilge system

– Fire hazard and

– Equipment in use

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Re-commissioning survey dependent on…

Vessel returns to normal operation

Vessel sails on single voyage

Vessel has/has not been maintained/

preserved during lay-up

Time in lay-up

Type and age of vessel

Maintenance and preservation during lay-up period is not a class requirement, but will affect the scope of the re-commissioning survey.

If during lay-up the unit has been preserved and maintained according to program reviewed by the society, the scope of re-commissioning survey will be specially considered.

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Prolonged Survey Intervals

Example

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Prolonged Survey Intervals

Preservation Declaration accepted

by DNV GL class

Documentation: Records of

preservation upon completion

Documentation: Maintenance plan

for the lay up period

Application to / Acceptance from

flag

Confirmation: Acceptance in

Principle of Prolonged Survey

Intervals. Pending on annual

surveys and successful re-

activation survey

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Annual Lay up survey:

Same as for regular annual lay up

survey

Additionally focus on:

• Maintenance in general

• Maintenance of preservation

Documentation: Review of

maintenance records

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Prolonged Survey Intervals – Re-commissioning

Re-commissioning survey

Recommend early involvement from DNV GL /continuous contact

Overdue surveys to be completed as for regular re-

commissioning

Minimum scope as for an annual survey

All elements of a renewal scope to be considered. Elements can

be waived pending on condition and effectiveness of

preservation

Final scope to be agreed with DNV GL

Upon successful completion of all surveys:

• Final acceptance from / information to flag

• New certificates with additional validity for time in lay up

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ISM and ISPS

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ISM and ISPS certification will be withdrawn. In the event the vessel is later brought

back into service, an interim verification audit will be required, with the vessel being

treated as a new vessel to the company. Upon successful completion of the verification,

an interim ISM and ISPS certificates will be issued

Lay-up more than

6 months

If the lay-up period is less than 6 months, but periodical audit window has expired

during lay-up, the certificate will be considered invalid. The vessel will then be required

to undergo interim verification upon re-commissioning.

For ISPS: If the vessel has been laid up less than 6 months and the periodical audit

window has not expired the certificate will still be valid.

For ISM: If the interruption period of the SMS on board the ship is more than 3 months

but less than 6 months, then Flag State Administration may require an additional audit,

in which case the Flag State Administration will issue the instructions. Upon satisfactory

completion of the additional verification, the existing SMC shall be endorsed.

Lay-up less than 6

months

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DNV GL Lay-up Services

DNV’s services on lay-up are available individually or

in the combination best suited for the actual

situation:

– General advisory service on lay-up scenarios

– Lay-up Declaration, Lay-up Clean Declaration

and Lay-up Preservation Declaration as

requested by the various parties involved such as

insurance and port authorities.

– Development of lay-up Plan including

specification and procedures.

– Risk Assessment to identify critical equipment

– Mooring Analysis, location approval and site

evaluation

– Certification of lay-up service provider

– Review company’s lay-up, preservation and re-

commissioning plan and process

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DNV GL Lay-up services - Benefits

The services provide a systematic and cost optimal

preparation for lay-ups with focus on safety and cost

efficiency. DNV GL's Declaration on Lay-up will

meet insurance requirements.

An App of lay-up declaration service will be

deployed through My DNVGL.

If the ship is preserved according to DNV GL's Lay-

up Guideline, a Preservation Declaration will be

issued and this will be reflected in a reduced re-

commissioning scope for DNV GL classed vessels.

A well preserved ship during lay-up will ultimately

result in reduced re-commissioning time and cost.

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Clean lay-up declaration

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“Munin”- world first FPSO received

DNVGL “Clean Lay-up Declaration”

• Mooring arrangement • Safety and security of

vessel lay-up • Emergency

Preparedness • Procedures to prevent

pollution • Air and noise pollution • Antifouling coating

treatment and marine growth

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Location Approval /mooring analysis and Lay-up declaration for inshore/quayside moorings for lay-up

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Mooring Analysis received

Verification Issue PLA

Survey Issue

LA and Decl.

Input data from client:

Mooring analysis from independent marine consultancy

Mooring equipment certificates (quay bollards, wires, …)

Outcome from DNVGL:

Preliminary Location Approval after satisfactory doc. review

Mooring, Safety and Security survey on board

Final location approval and lay-up declaration

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Location Approval for jack-ups at inshore/quayside location

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If moored at quay, same requirements as for a floating unit

If the rig is jacked up at a inshore or quayside location a Site Specific

Assessment is required

Global strength and foundations are considered, with main focus on the

utilization of legs, leg-hull interaction, spudcan-soil interaction and foundation

capabilities

Applicable standards

– DNVGL-ST-N001 Marine Operations and marine warranty

– DNVGL-ST-N002 Site Specific assessment of mobile offshore units for

marine warranty

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What is a Declaration regarding shore bollard?

An independent statement reassuring

facility owners and and other

stakeholders (authorities, insurance

companies, Marine warranty

surveyors, end users, etc.) that the

facility is compliant with all relevant

regulations and standards within the

operational limitations stated in the

declaration.

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Lay-up service provider certification

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DNV GL © 2016

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SAFER, SMARTER, GREENER

www.dnvgl.com

Thank you for your attention

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Richard Tao

Discipline Leader, Life Cycle Management

Maritime Advisory

Richard.tao@dnvgl.com

Lien, Narve Senior principal Surveyor

Fleet Responsible Mobile Units in Operation