Shipyard Open Book Strategy
INCITIAS developed a contracting strategy with the objective of saving time and money on new custom vessel orders for Project Developers in the energy and resources industries. The cornerstone of this contracting process was to build trust and transparency between all parties.
Understanding the strengths and constraints of both shipyard and Oil & Gas standards, INCITIAS’ was able to combine the knowledge to provide a single solution.
From our road map strategy developed for Pacific Traverse Energy (PTE). INCITIAS investigated sourcing an LPG Floating Refrigeration Unit (FRU), including the evaluation of a new-build LPG FRU based on a VLGC design, as well as a conversion of an existing Very Large Gas Carrier (VLGC).
For the newbuild option, we prepared an FRU newbuild specification along with a formal RFP package and shortlisted experienced and qualified shipyards. INCITIAS led the technical clarifications with the shipyards, through to the shortlisting of Chinese and Korean shipyards.
Using an open-book strategy for the newbuild vessel purchase, the Project Developer was able to strengthen the trust in their relationship with the shipyard for the unique design of the FRU (based on a proven VLGC hull), from bid engineering through to FEED. The open book strategy allowed for a firm contract price based on hull construction and equipment costs, plus a jointly agreed margin for the shipyard.
Our approach included benchmarking of individual components, providing the client higher confidence in the technical and commercial outcomes from the shipyard, to reduce their risk exposure to variations in design through FEED. Similarly, the shipyard was able to reduce their contingency covering known unknowns, improve the accuracy of the contract value and define a resolution and costing model for any changes within the scope.
Most importantly, this single contracting strategy allows shipyards to utilise their EPC capability to design and build topsides. It also provides our clients with access to an established and highly cost-effective supply chain, resulting in schedule and cost reductions.
An open book approach allows for risk and opportunity sharing between the shipyard and client. Although we acknowledge the approach requires additional reporting, reviewing and oversight and its careful management, INCITIAS can actively manage this process.
Overall, implementation of this type of open-book strategy could result in estimated savings of around 30% of vessel CAPEX and a reduction in time from the start of the project to FID, through to delivery of around 8-12 months from initial shipyard feedback, from conventional contracting strategies.
This process would provide value on all FPSO, FSRU and FSU newbuild projects requiring customisation where the hull and mooring components represent more than 50% of the CAPEX.
By including INCITIAS in the early stages of strategic procurement, we can ensure the project developer has all options on the table for consideration prior to FEED and FID.
INCITIAS Services and Original Products are supported by in-house team of engineers and designers:
Naval Architecture services:
Process Engineering services:
Mechanical and Marine Engineering services:
Safety and Risk Engineering services:
Structural Engineering services:
Electrical and Instrumentation Engineering services:
Subsea Engineering services:
FPSO External Riser turret mooring
Mooring Handling LIFTING BEAM GENERAL ASSEMBLY Original Equipment
Hose Reel 3D hybrid render
FPSO Bow Extension 3D modelling
Our clients find our experience invaluable during FPSO decommissioning planning and execution, using the INCITIAS teams’ ability to assess the most suitable strategy, based on the project and local authority’s requirements. Our team has extensive experience in the design and installation of FPSO mooring systems, risers and umbilicals.
We can support the client decommissioning plan with the following services:
Examples of typical deliverables for FPSO Decommissioning are:
Single Point Mooring system
Independent Verification Design
Working together with INCITIAS, clients can obtain objective evidence of asset compliance with project requirements.
With our independent verification design process, INCITIAS applies an efficient risk-based assessment method to prioritise critical elements of the asset.
An INCITIAS comprehensive review can include:
We work together with our clients to ensure the appropriate level of review is carried out.
Operations & Maintenance Support
INCITIAS combines our Engineering expertise with real world Operations and Maintenance experience. We support our clients with O&M development and management activities including:
Integrated Owner’s Engineering Services
We support Owners with engineering, technical, and project management expertise across LNG, marine, and vessel conversion projects. Our clients can minimise risk and maximise opportunities earlier in project execution, with INCITIAS Owner’s engineering services.
INCITIAS can provide integrated owner’s engineering services for onshore and offshore projects from a client office, site location or remotely from our offices in Melbourne.
Typical services are:
Indicative deliverables are:
We can be as involved as you require. From specialist resources who consultant on specific aspects of your project, to the provision of a fully integrated Owners team.
At INCITIAS we develop tailor-made delivery solutions to match your project’s execution strategy and risk profile. Offering a full range of alternative delivery methods enables us to deliver the most effective project outcomes for you.
CLP Jetty Installation during the daytime
INCITIAS offers integrated technical and commercial advisory services to assist clients advance their projects and provide support for their decision-making process. Clients can reduce risk and maximise opportunities by accessing our team of advisory specialists’ wealth of experience.
Typical advisory services are:
INCITIAS techno-commercial advisory services aligns commercial drivers with feasible and proven technical solutions. Our team’s experience includes facility selection, financial assessment, contracting strategies, construction management and project operations. Assisting clients meet their business objectives using our capabilities to provide insights and solutions.
Indicative deliverables are: