Responding to the Challenges of Change BY CHRISTOPHER J. WIERNICKI, ABS CHAIRMAN, PRESIDENT AND CEO

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1 July 2014 ACTIVITIES In This Issue 151st Annual Meeting Recap Page 3 ABS Awarded PETRONAS FLNG2 Page 4 Real Time Monitoring for Ship Safety Page 12

2 Message from the Chairman Responding to the Challenges of Change BY CHRISTOPHER J. WIERNICKI, ABS CHAIRMAN, PRESIDENT AND CEO As the marine and offshore industries push into new operational frontiers, the technology we employ has arguably never been so important in helping us adapt to changes in trading patterns, energy use and of course to the emerging rules that will form the baseline of safe operations. All will have an impact on the design and operation of assets in the future. The critical issue is how we as an industry respond. The classification sector has traditionally provided technical guidance and evaluation. At ABS, we are focused on continuing to expand our technical Christopher J. Wiernicki leadership to meet the changing demands of our members and clients. Leadership means evaluating the likely impact of change and adopting strategies that will position an organization to manage it in coming years. In order to tackle the host of complex issues this industry will face, it is imperative that technical and engineering leadership has a much more comprehensive and broader perspective than in prior decades. To drive the industry forward, technical leadership must exhibit three core tenets. First, it must be grounded in risk assessment and maximize the application of riskbased methodologies in making risk-informed decisions. Second, it must be comfortable with techno-economic thinking and decision-making. Finally, it must recognize the fundamental importance of big data. Scientifically based risk assessment and risk management techniques should be at the heart of the industry s approach to safety. I strongly believe that the prescriptive approach that still dominates regulatory and class standards is a significant handicap to genuine technical innovation and future engineering breakthroughs. Risk methodologies are based on the accumulation and analysis of relevant data. In other industries, the collection and analysis of such operational data is increasingly commonplace. At ABS, we are working diligently to develop a model for the future of classification that truly meets the operational and safety needs of the marine and offshore sectors. Through investments in research programs and cutting-edge systems, we are working with industry partners to figure out how we can collectively gather and share the essential data that are needed to frame sensible risk-based regulations and more focused, efficient and condition-based classification standards. This vision will require harnessing the technical and engineering power that is readily available to us but, at present, has seen limited application. If we are truly to raise the safety bar we have to begin thinking in these terms. True technical leadership is needed to achieve these goals and the test will be whether we can do so. At ABS we stand ready to help the marine and offshore industries tackle this challenge as we collectively establish a framework for the future. Ç PAGE 2 ACTIVITIES JULY 2014

3 abs annual meeting ABS Delivers Strong Performance Highlighting its 2013 global performance at a recent annual meeting, ABS reported another strong performance year in the marine, offshore and energy sectors. Last year, ABS achieved several milestones as the global economy began to strengthen. Speaking at the ABS Annual Meeting in New York on 29 April 2014, ABS Chairman, President and CEO Christopher J. Wiernicki emphasized that through ABS sound technology investment, continued focus on best-in-class service and commitment to its mission, the organization was able to continue its growth across all market segments. In 2013, the ABS-classed fleet expanded to million gross tons (gt), a growth rate of more than 6 percent year-on-year. ABS became only the second classification society to surpass the 200 million gt mark. ABS also maintained a leading position in the global orderbook by closing out the year with 38.8 million gt contracted to class with ABS (22 percent of all vessels on order). ABS saw continued success in key sectors of the marine industry. Market share for new construction of containerships continued to 2013 ABS Existing Fleet grow, with 22 percent of ultra large containerships and 61 percent of panamax containerships on order set for ABS class. ABS continued its strong performance in the liquefied natural gas (LNG) carrier sector with 27 percent share of the orderbook. Oil tankers continue to comprise the largest tonnage within the ABS fleet, growing more than 5 percent year-onyear to 73.8 million gt, with orders for a further 139 vessels aggregating 6.2 million gt. Indicating a sound foundation for the future, nearly 50 percent of all vessels in ABS class are five years of age or younger, and nearly 70 percent of the vessels have ten years or less of operational activity. In the offshore sector, ABS continued to lead in mobile offshore drilling units (MODUs) and floating production installations. In the jackup market, ABS maintained its majority share with 109 out of 121 of new orders delivered to ABS class. There were 72 new orders for drillships, with 54 awarded to ABS class. ABS also continued its strong performance in the floating, production, storage and offloading (FPSO) vessel market sector, and closed out 2013 with 42 percent of the existing FPSOs and 39 percent of newbuilds. In the area of Port State Control, ABS maintained its position as a top performer with the US Coast Guard and Paris and Tokyo MOUs in their annual reports on class-related detentions. In July, the Paris MOU identified ABS as the best performing Recognized Organization for the rolling threeyear period ABS enduring legacy of reliable maritime services combined with our long-term support of offshore industry innovation and technology are key drivers of our success into the second half of 2014, Wiernicki said. Investments in our people and technical capabilities also place ABS in a position to further cement our position as a global leader. Ç ACTIVITIES JULY 2014 PAGE 3

4 News ABS Awarded PETRONAS FLNG2 Project PETRONAS, Malaysia s national oil company, has selected ABS to class the company s second floating LNG facility (PFLNG2). The vessel will be built at the Samsung Heavy Industries yard in Geoje, Korea. As the selected class society for the PFLNG2 unit, ABS will provide a comprehensive suite of technical services, including classification. ABS has a long This is a very significant history working award for ABS and is the with floating gas Patrick Janssens next step for ABS as an concepts, classing organization that is widely the Ardjuna recognized as the leader in the Sakti, the first offshore liquefied classification of offshore production petroleum gas (LPG) storage units and LNG ships, says ABS Vice facility in the mid 1970s for President for Global Gas Atlantic Richfield Indonesia Solutions Patrick and the first LPG FPSO in Janssens ABS has awarded approval in principle (AIP) for ten floating LNG concepts and has performed pre-front end engineering and design (pre-feed) and FEED work on a number of others. PFLNG2, which is scheduled to see first gas production in early 2018, will be moored via an external turret on the deepwater Rotan gas field offshore Sabah, Malaysia. Designed to produce 1.5 million metric tons of LNG per year, the vessel is expected to operate on site for a minimum of 20 years without drydocking. Janssens views this as the first of many potential awards. The search for new energy reserves is seeing exploration activities shift to the type of remote offshore fields on which facilities like the PFLNG2 are perfectly suited to operate, he says. With the growing demand for gas around the world, there will be a continued emphasis on FLNG-related technology, and ABS will continue to play a leading role. The award to class this FLNG newbuild follows the recent unveiling of the ABS Global Gas Solutions team, a multidisciplinary group of engineers formed to respond to the rapidly escalating number of gas-related projects, including LNG and LPG transportation, the use of LNG and LPG as fuel and the growing number of FLNG projects. PETRONAS There currently are more than 150 floating oil and gas facilities in the ABS-classed fleet, the largest single market share of any classification society. The PETRONAS facility is scheduled to start deepwater operations offshore Sabah in Ç PAGE 4 ACTIVITIES JULY 2014

5 news EBDG Awarded AIP for LNG Bunker Barge With the demand for LNG-fueled vessels on the rise in North America, organizations across the region are developing the technologies and practices needed for wide-scale adoption of LNG as a marine fuel. As with most shifts of this magnitude, there are multiple drivers for the move toward gas-fueled vessels. For one thing, LNG virtually eliminates SOx and particulate matter emissions, and its technical application will transform operational fuel efficiency and environmental performance in terms of reduced NOx and CO 2 emissions. For vessels operating within the North American Emission Control Area (ECA), this is of particular importance because by 2015, the sulfur emissions limit will drop to no more than 0.10 percent. Another plus for shipowners is cost. At present, LNG is considerably less expensive than low sulfur marine fuels. On the surface, it is evident why using LNG as fuel has appeal, but moving to LNG from traditional fuels is not a simple undertaking. There are challenges, the most immediate of which is the fact that adoption is not possible without the infrastructure required to supply this growing market. As is often the case, forward-looking companies are moving to address the hurdles that stand between industry and the adoption of new technology. And as has happened often in the past, some of the most innovative are looking to ABS to move into new areas with them. Elliott Bay Design Group (EBDG), based in Seattle, Washington, is one of the first movers in this sector. The company, made up primarily of marine engineers and naval architects, has 25 years of experience solving challenging industry problems. EBDG, which describes itself on the company website as creating accurate, realistic and creative designs that can move from idea to design to shipyard to service, has developed what it hopes will be a solution to the LNG bunkering challenge. The company has designed a 2,000 m 3 LNG combination bunkering barge design and has appealed to ABS to provide approval in principle (AIP). Roy Bleiberg The move to involve ABS does not surprise ABS Director of Global Gas Solutions Roy Bleiberg. At ABS, our goal is to help designers, shipyards and operators bring new and novel concepts to the marketplace in a safe and effective manner, he says. The EB-2000 LNG is one of several LNG barge designs developed by EBDG to meet the growing demand for efficient and cost-effective refueling of LNG-powered vessels. The innovative 257-ft. EB-2000 was designed for use as an articulated tug barge or to be towed. The unit features a marine diesel fuel cargo tank for refueling dual-fuel vessels. The EBDG combination bunkering barge takes an innovative approach to meeting the challenges of LNG bunkering, an obstacle that must be overcome for LNG-fueled operations to become truly effective in the United States, Bleiberg says. This latest step by EBDG is a significant one that will move industry along the path to broader adoption of LNG as fuel. Ç Elliott Bay Design Group ACTIVITIES JULY 2014 PAGE 5

6 news Innovative LNG Carriers Receive ABS Class absence of natural gas in some of the world s largest gas-consuming nations such as Japan, Korea and Taiwan, are indicators that the demand for LNG vessels will continue to increase. US Shale Gas Malaysian national oil company PETRONAS has chosen ABS to provide the classification work for two innovative Moss-type LNG carriers. The 150,200-m 3 capacity ships, which will be built at the high-tech Hyundai Heavy Industries (HHI) yard in Ulsan, South Korea, will be the largest Moss-type units ever built at HHI and will feature the latest technology to improve their energy efficiency and operational reliability. This contract is a recognition of ABS technical knowledge and leadership in the gas carrier sector, says ABS Vice President for Global Gas Solutions Patrick Janssens. To boost the performance, reliability and ease of maintenance of PETRONAS ships, they will feature ultra-steam turbine propulsion systems, which are expected to be about 15 percent more energy efficient than conventional steam turbines, according to HHI. The innovative Moss-type cargo tanks will be about 42 m (138 ft) in diameter, making them the largest tanks of this type ever fabricated at the Korean yard. Because Moss-type tanks have no minimum filling limits, they are well suited to serve as shuttles to and from FLNG units another promising asset class or other offshore facilities. The ships will feature full-length tank covers integrated into the main hulls, a design enhancement that is expected to improve longitudinal strength and minimize structural discontinuity. The unique integrated structure also will allow for piping and passageways to be arranged on the tankcover deck, improving safety and ease of maintenance. According to Clarkson s Shipping Intelligence Network, as of 20 May 2014, there were 121 LNG ships on order at the world s shipyards; a full one-third of the current orderbook for 344 gas ships is destined for the LNG sector. Demand for cleaner forms of carbon-based fuel is expected to continue to increase orders for gas ships. And the new shale gas discoveries in the US coupled with the HHI PETRONAS ABS has the largest orderbook for LNG carriers among class societies, and all of the current LNG cargocontainment systems Moss, GTT s Mark III and No. 96 membrane types and SPB types have been installed on ABS-classed ships. ABS also continues to offer approval in principle to new containment concepts proposed by industry designers, Janssens says. Ç PAGE 6 ACTIVITIES JULY 2014

7 news Study Outlines LNG Bunkering Regulations North American vessel owners and operators are showing increased interest in the application of natural gas to fuel ships, and many companies are making the switch to LNG as a way to realize substantial operating savings. However, several nearterm challenges tied to regulatory requirements and support infrastructure must be overcome to support the wide-scale adoption of LNG as fuel. To facilitate understanding the applicable regulatory framework, ABS and ABS Group conducted a study resulting in an integrated approach to addressing the federal, state, provincial and local requirements that may impact LNG bunkering infrastructure in North America. Included in the report is a recommended process for meeting those requirements and obtaining approval for LNG bunkering projects. As the potential for LNG-fueled vessels in North America continues to grow, uncertainty exists on how to meet various regulatory requirements, says ABS Vice President for Global Gas Solutions Patrick Janssens. The primary objective of this comprehensive study was to develop a set of implementation aids, check lists, processes and regulatory Charles Mitchell information that will support owners and operators of LNG-fueled vessels, LNG bunkering vessels and waterfront facilities at various stages of their decisionmaking processes. The ABS report, Bunkering of Liquefied Natural Gas-Fueled Marine Vessels in North America, takes a broad look at the requirements of various regulatory bodies, including the IMO, US Coast Guard, Transport Canada, US Environmental Protection Agency and the many state and local authorities that may be involved in a bunkering project. While a number of LNG bunkering studies have been conducted, this is the first that pulls all the pieces together into a process guide and regulatory framework for LNG stakeholders, notes Charles Mitchell, ABS Group Vice President, Global Strategic Initiatives. Providing guidance and standards is critical, but so too is helping industry find solutions to operational challenges. Recognizing this need led to the formation of the ABS Global Gas Solutions Team, which comprises industry-focused professionals whose objective is to work alongside owners, shipyards and equipment manufacturers to support, among other initiatives, the use of LNG-fueled propulsion systems as a solution to emissions compliance. The ABS Global Gas Solutions team is prepared to help stakeholders successfully address each level of regulatory compliance, says Janssens. Ç The report includes decision trees to assist potential LNG bunkering facility operators in identifying which of the current federal regulations, codes and standards may be applicable to their site. ACTIVITIES JULY 2014 PAGE 7

8 news Committee Addresses Safety-critical Equipment Safety has long been a top consideration in offshore oil and gas exploration and development. But achieving a safety level that results in zero accidents has been elusive. There has been an increase over the years in the amount of attention paid to technical detail, quality and reliability with the goal of creating equipment that always works at peak performance every day. Ken Richardson ABS has been in the forefront of offshore safety since the inception of offshore operations more than 60 years ago, and with the creation of the Offshore Equipment Advisory Committee, ABS once again has taken the lead in working with the offshore industry to advance operational safety. According to Ken Richardson, ABS Executive Vice President for Energy Development, who has been tasked with creating this committee, the objective is to cultivate industry expertise, which will be applied to the development and modification of Rules and Guides. The Offshore Equipment Advisory Committee will provide expert guidance from industry on ways to improve equipment safety, and that guidance will be used to update and improve ABS Rules and associated classification processes, he says. In short, the Offshore Equipment Advisory Committee will refine the focus on equipment safety and facilitate information exchange for Rule development and enhancement of classification services for equipment to industry. The formation of this committee is one of the ways ABS is taking safety to the next level leading the industry toward the next-generation of safety tools and systems, Richardson explains. We are always looking for ways to improve our classification criteria to make them as relevant and helpful as possible. This move will help ABS improve the tools the industry uses to verify operational safety. One of the primary focuses of this committee will be to gather information from offshore experts to guide changes and additions to publications like the ABS Guide for the Classification of Drilling Systems. Input from the Offshore Equipment Advisory Committee also will enable ABS engineers and surveyors to more effectively carry out associated classification services. Plans are in place for the new committee to meet semi-annually to address relevant technical issues. Equipment manufacturers one of several groups that will be represented on the new committee see value in participating in focused discussions that will give them a voice in guiding how safety is improved. Their view is that by working together, owners, manufacturers and classification societies can develop new equipment inspection processes that will make certification more efficient while maintaining a strong emphasis on safety. Our thorough and rigorous approach to Rule-making and their practical application is fundamental to our safety mission, Richardson says. The process we follow invites input from industry that allows ABS to produce the most comprehensive and thoroughly reviewed Rules and effective classification services in the industry. Ç PAGE 8 Oil State Industries, Inc. ACTIVITIES JULY 2014

9 news AIP Awarded for Second-Generation HiLoad Unit power and the capability to maneuver vessels larger than suezmax size in Brazil s Santos Basin environment. Upon completion of class requirements, the HiLoad DP BR unit will receive the A1, AMS-NP, DPS-2, AMCC, AMCCU and UWILD notations. The functional description, Tanker Loading and Station Keeping System, will be included in the ABS Record in addition to the class notations. Remora The world s largest oil discoveries in recent years have come from Brazil s deepwater, pre-salt basins, where state-run Petrobras continues to set new production records. Along with having the potential to significantly increase oil production in the country, the pre-salt areas are estimated to contain sizable natural gas reserves as well. The US Energy Information Administration places total pre-salt reserves at more than 50 billion barrels of oil equivalent. To support production growth in the region, Petrobras and its partners are deploying a large number of converted and newly built FPSOs to work in the Campos, Santos and Espírito Santo basins. Offloading technology will play an even greater role in transporting additional crude oil resources produced and stored on these units to shore. Addressing the need for a costeffective and flexible offloading solution, Norway-based Remora AS developed the HiLoad dynamic positioning (DP class 2+) loading and stationkeeping unit. The unit design was inspired by the remora fish (also known as suckerfish) that attaches to larger marine animals for transport and sustenance. According to Remora Senior Vice President, Technical Division Geir Ove Saltvedt, the HiLoad DP technology provides a direct offloading method that could result in considerable cost savings while exporting crude oil from ultra deepwater areas. In April, ABS granted AIP for the Remora HiLoad DP BR loading unit, a second generation design of the HiLoad DP system that connects to and keeps conventional tankers in position when loading from offshore installations. The unit can provide stationkeeping to any non-dedicated tanker or barge without the need for modifications to the hull structure or associated equipment, such as mooring lines. The basic design was approved in June. In mid-2013, Remora was contracted by BG Group to perform a FEED study for the next generation of HiLoad DP units. The new unit design will include increased engine Developed over 14 years, the HiLoad technology is based on a proprietary high-capacity friction attachment system, which uses suction cups that are capable of transferring several thousand tons of friction force between the loading unit and the conventional tanker. Like the suckerfish s mechanism, the unit attaches to a larger host, in this case an oil tanker, docking onto the bottom using its installed ballast system. Once connected, the DP system allows the oil tanker to weather vane, enabling the unit to hold the tanker in position during offloading with limited thruster forces while keeping it at a safe distance from the FPSO. An oil transfer line and power and signal umbilical from the HiLoad docking station then transfers crude oil to the tanker. The HiLoad technology is jointly owned by Remora AS and HiLoad LNG AS, a 100 percent subsidiary of Sevan Marine ASA. Teekay Corp. is the largest owner of both Remora and Sevan Marine. Ç ACTIVITIES JULY 2014 PAGE 9

10 news ABS to Class Newbuild OCVs Edison Chouest Offshore and Island Offshore have ordered two next-generation offshore construction vessels (OCVs), which will be built to ABS class at shipyards in Norway and the US. This order is significant because it marks the first time Ulstein design vessels will be built in a US yard. In fact, the order, which includes options, sets precedent on several levels. In addition to its being the first time Ulstein has chosen to use a US yard, this shipbuilding contract is the largest ever undertaken by Ulstein. When the first of these two ships is completed, it will be the largest ever to be built in the company s yard. The vessels, ordered by joint-venture company Island Ventures II LLC, will feature Ulstein newly developed SX165 design, offering a large work platform measuring 28 m (92 ft) wide and m (478 ft) long and the potential to accommodate 200 people. It is equipped with two cranes, one of which is rated for 400 metric tons and the other for 140 metric tons. The new OCVs will each have three moonpools, hull openings through which tools and instruments can be lowered into the water. The biggest moonpool measures 11.2 m (37 ft) by 12 m (39 ft). The two smaller moonpools are designed for the deployment of remotely operated vehicles (ROVs) installed in a centrally located hangar. The design offers extreme operational reliability through redundancy, such as the inclusion of three separate engine rooms. If one of the engine rooms fails, the OCVs retain most of their operational capacity. Health, safety and the environment also have been considered fully in the development of the SX165 design. For example, the vessel will be delivered in accordance with the International Labour Organization s Maritime Labour Convention, 2006 (ILO MLC, 2006) that sets out the comfort and safety requirements for the crew. The ship has four lifeboats, two on each side. In addition, the vessel is equipped with SCR catalyst system for NOx emission reduction. The newbuilds will feature Ulstein s X-BOW design, which delivers power efficiency through reduced pitch/heave accelerations and speed loss in waves. By enabling higher transit speed and making reduced power consumption possible, the design will improve fuel efficiency while also reducing emissions. Because the bow shape eliminates slamming and bow impact, noise and vibration are reduced. This leads to a more comfortable workplace and more effective rest time for the crew. Finally, the design improves safety. The bow shape gives a soft entry in waves, diminishing spray and icing and reducing the likelihood of damage to the forebody in extreme weather. Island Ventures II has purchased the design and engineering packages to enable the second ship to be built at Edison Chouest s LaShip yard in Houma, Louisiana. The first ship is scheduled for delivery in the third quarter of 2015 from the Norwegian firm s main shipyard in Ulsteinvik. Ç Ulstein PAGE 10 ACTIVITIES JULY 2014

11 news China Starts First Deepwater Production China National Offshore Oil Corp. (CNOOC) and Husky Oil China Limited, a subsidiary of Canadian independent Husky Energy, have started gas production from the Liwan field, China s largest offshore natural gas discovery and first deepwater development, in the South China Sea. The Liwan Gas Project consists of three deepwater fields: Liwan 3-1, Liuhua 34-2 and Liuhua The fields share a subsea production system, subsea pipeline transportation and onshore gas processing infrastructure. According to Husky, which operates the deepwater segment of the infrastructure, Liwan has taken approximately seven years to develop, from discovery to first production. In July 2010, ABS and China Classification Society (CCS) were jointly contracted by CNOOC and Husky as third-party agencies to provide certification services for the Liwan 3-1 deepwater development project. The project included deepwater subsea completion facilities consisting of subsea trees, manifolds and pipelines Hai Yang Shi You 981 CNOOC Liwan 3-1 Field CNOOC and shallow-water facilities (operated by CNOOC) comprising the CEP platform and associated export pipeline to the gas receiving plant. For the deepwater scope of certification, ABS performed technical review of the detailed design, all onshore procurement and offshore installation, hookup and commissioning inspection services. For the shallow-water portion, ABS performed technical review of the basic and detailed design, while CCS provided the statutory mandatory review, fabrication, installation and commissioning inspection services. Design review began in July 2010 and lasted more than three years, with ABS and CCS working together to execute the project. The Liwan 3-1 field, consisting of nine deepwater wells, is located on Block 29/26 in 1,200 to 1,500 m (3,940 to 5,000 ft) water depth, approximately 75 km (46.5 miles) from the shallow-water platform and 300 km (186 miles) southeast of the Hong Kong Special Administrative Region. The $6.5 billion development involved the deepest platform installation requiring the largest floatover installation executed to date offshore China. Liwan represents the latest in a series of major cooperative efforts between the two class societies. ABS and CCS also collaborated on the construction of the first LNG carriers built in Hudong Shipyard in China as well as the largest semisubmersible drilling unit, the Hai Yang Shi You 981, built at Waigaoqiao. Both projects were dual classed by ABS and CCS. Husky estimates that initial gas sales from Liwan 3-1 of 250 million cubic feet per day (mmcf/d) gross will increase to 300 mmcf/d in the second half of Subject to final approvals, the tie-in of Liuhua 34-2 in the latter half of the year is expected to increase combined gas sales to 340 mmcf/d gross. Looking ahead, gas sales are expected to increase to a range of 400 to 500 mmcf/d gross with the tie-in of Liuhua 29-1, which is expected in the timeframe. Initial sales of condensates and natural gas liquids from Liwan 3-1 are expected to equal 10,000 to 14,000 barrels of oil equivalent per day. Ç ACTIVITIES JULY 2014 PAGE 11

12 technology Real-time Monitoring for Ship Safety Demands for increased engine power and greater energy efficiency are putting greater stress on propulsion components, particularly the aft stern-tube bearing. The result is heavier propeller loads at very low shaft revolutions. The primary source of problems for the stern-tube bearing is its improper interaction with the propulsion shaft; their relationship is a complicated matter which Todd Grove continually changes during operations, depending upon such factors as the initial shaft alignment, the loading conditions, draft, hull deflection, rudder angle and speed. The problem becomes even more complicated with ultra large and/ or twin-screw vessels and any design that optimizes energy efficiency by reducing steel weight, resulting in increased flexibility of the hull structure. In answer to the need to address this problem, ABS has worked with industry partners to develop the Digital Shaft Alignment Monitor (D-SAM), a system that significantly enhances the ship operator s ability to detect and correct these failures. D-SAM uses a series of proximity sensors and custom-built software to monitor the clearance between the surfaces of the stern-tube bearing and the propulsion shaft. By monitoring the operating health of these components, the system helps prevent failures that can render ships inoperable, potentially endangering their crews and the environment. The new operating conditions require not only an improvement in the approach to alignment designs and installation, they also demand a better way to verify that alignment while operations are ongoing, says ABS Chief Technology Officer Todd Grove. Other than temperature probes, which may detect a problem too late to prevent damage to, or a failure of, the stern-tube bearing, I am not aware of another system that allows owners and operators to Propulsion shaft PAGE 12 ACTIVITIES JULY 2014

13 technology ADDRESS CHANGES Stern tube bearing inspection monitor events inside the stern tube between the propulsion shaft and this key bearing. Traditionally, the condition of the stern-tube bearing has been validated solely by monitoring its temperature, with sensors imbedded below the surface of the bearing. An alarm sounds when temperatures have exceeded established thresholds. Unfortunately, the warning sometimes comes too late to save the bearing. D-SAM is designed to continuously monitor temperature as well as the clearance between the shaft and the stern-tube bearing. A number of proximity probes are imbedded inside the bearing to measure the distance between the shaft and the bearing at several locations. When clearance information is combined with the temperature readings, remedial action can be taken if the shaft comes into proximity to the bearing, causing the temperature to rise. This level of dashboard monitoring, enabled by customized software, provides a real-time report of the shaft s position inside the bearing. Because twin-screw designs are increasingly popular for the propulsion of large LNG and container vessels, D-SAM was first trialed on a Maersk Triple-E class containership, where the system has been active for several months, and it is currently being installed in a new Atlantic-max LNG carrier. ABS is developing an optional classification notation for vessels and units that incorporate D-SAM, as it is expected to provide an enhanced level of safety and operating efficiency. Ç CHINA BEIJING ABS Greater China Division Room 1130, South Tower, Kerry Centre No. 1 Guanghua Road, Chaoyang District Beijing China Tel: GUANGZHOU ABS Greater China Division Room 1207, North Tower, Poly V Mansion No. 11, Xiancun Road, Tianhe District Guangzhou China Tel: DENMARK COPENHAGEN ABS Europe Division Sundkrogsgade 19 Copenhagen DK-2100 Denmark Tel: SOUTH AFRICA DURBAN ABS Europe Division Suite 6, 1st Floor, Buckhurst Building Essex Gardens Office Park 1 Nelson Road Westville, South Africa Tel: Fax: USA BROWNSVILLE, TEXAS ABS Americas Division 400 East Alton Gloor, Suite B-302 Brownsville, TX USA HOUSTON OFFSHORE ENERGY CENTER ABS Offshore Energy Center Energy Crossing II (East Building) Katy Freeway Houston, TX USA Tel: NEW ORLEANS, LOUISIANA ABS Americas Division 800 West Commerce Drive, Suite 400 Harahan, LA USA JEFFERSON, INDIANA ABS Americas Division 350 Missouri Avenue, Suite 102 Jeffersonville, IN USA ACTIVITIES JULY 2014 PAGE 13

14 technology Recalling the Journey Toward Modern Superships Retired ABS Executive Vice President and Chief Technology Officer Donald Liu is widely renowned as the Father of ABS SafeHull, a ship design evaluation system founded on engineering first principles and recognized as one of the most significant contributions to enhanced ship safety. Just two years into his professional career at ABS, Liu lent his computer programming skills to the design of super-sized ships at the University of Arizona (UA) College of Engineering, kick starting the development of modern superships. In the May issue of the Arizona Engineer newsletter published by the College of Engineering, Liu, who has a PhD in Mechanical Engineering from the university, was profiled as a major contributor to safer superships. Beginning in the 1960s, advancements in computer applications to structural engineering were accelerating as the size of ships increased. At the same time the shipping industry was scaling up, so was the airline industry. Bigger planes that flew higher and faster, including the Boeing 747, were in development. The shipping industry took notice. When Chevron needed help with the design of its first supertanker, it approached Boeing about the company s finite element analysis (FEA) software for aircraft design. Although, Boeing did not give Chevron access to the software, Don Liu Boeing s head of structures referred Chevron to Hussein Kamel, a rising star in the field of FEA who had just joined the UA aerospace and mechanical engineering faculty (now professor emeritus). In addition to FEA, the development of shipping industryspecific design software required expertise in naval architecture and computer programming. Liu was identified as Kamel s ideal candidate. That was in 1968, and Liu had only been with ABS for two years based in ABS New York headquarters. Expecting to complete his assignment in Tucson in only a few months time, Liu stayed on the Arizona Project for three and a half years while undertaking PhD studies. He worked with Kamel and Chevron Shipping engineer Bill Reid on a software suite called DAISY, or Displacement Automated Integrated System, initially designed to perform FEA on supertanker designs. Ship hydrodynamics produces the dynamic ship motions and wave loading for a ship traveling in a seaway. With this software, which also included a ship hydrodynamics component as part of the FEA system, naval architects could create computer models of ships under the real-life loads and stresses caused by high seas, storms and cargo shifting. The ability to identify potential weaknesses during the design stage meant that the shipping industry could build and deploy larger vessels and be assured of their strength and structural safety. The application of such analysis to the design process brought ship hydrodynamics and ship structural design together, with classification rules becoming part of the software. This application as developed by Liu became what is known as the dynamic loading approach (DLA) for ship structural analysis and is still widely used at ABS in the classification of ships. Ç EDITOR S NOTE: A version of this article appeared in the May 2014 issue of Arizona Engineer, a newsletter published by the University of Arizona s College of Engineering. PAGE 14 ACTIVITIES JULY 2014

15 rules & guides Analyzing Floating Offshore Wind Turbines The increased global focus on wind energy has led to greater interest in offshore wind installations. To meet the growing demand for information related to the motions of floating offshore wind turbines (FOWTs), ABS has released Guidance Notes on Global Performance Analysis for Floating Offshore Wind Turbine Installations. According to ABS Managing Principal Engineer Qing Yu, who helped to develop the document, the recently released Guidance Notes are intended for use in conjunction with the ABS Guide for Building and Classing Floating Offshore Wind Turbine Installations (FOWTI Guide), which was created partially on the basis of a technical feasibility study of floating wind turbines that ABS carried out for the US Bureau of Safety and Environmental Enforcement (BSEE). Understanding the structures motions is critical, Yu says, explaining that FOWTs are dramatically different from typical oil and gas platforms because they show very different load and response characteristics. In order for us to better account for the characteristic global responses of floating offshore wind turbine designs, we had to develop design criteria with due consideration of the strong interaction among the different components of floating wind turbines, he says. That is the information that appears in the earlier Guide. The Guidance Notes provide global performance analysis methodologies, modeling strategies and suggestions for numerical simulations for FOWTs, where the floating support structure could assume different configurations such as tension-leg platform, spar or semisubmersible. Determining the motions of support structures is complicated, in part because an FOWT consists of a number of subsystems, including the floating support structure (hull structure and tower), the turbine Rotor-Nacelle Assembly (RNA) and the safety and control system, as well as the stationkeeping system, which includes the mooring or tendon system and anchoring systems. The best approach, Qing says, is to use an integrated model that includes all of these components, noting that an alternative method, where the dynamic analyses of the stationkeeping system are performed separately by using the responses of the floating support structure as boundary conditions, also could be acceptable, provided that the coupling effect of the stationkeeping system and the floating support structure is adequately taken into account. Global performance analyses determine the effects of environmental conditions and other loads on the FOWT and its components. For safety purposes, ABS suggests that global performance analyses should be carried out for all critical conditions in the pre-service and in-service phases. The value in the Guidance Notes is that they provide the best practice and the information needed to assist in carrying out such analyses. Ç The ABS Guidance Notes on Global Performance Analysis for Floating Offshore Wind Turbine Installations (Pub 206) is available for free download from the ABS website at Navigate to Resources, Rules & Guides, Downloads. ABS BookShelf ACTIVITIES JULY 2014 PAGE 15

16 rules & guides Container Securing Systems Guide Gets an Update A balance improved cargo capacity with safe operations. BS has released an update to the ABS Guide for Certification of Container Securing Systems that includes new and revised requirements for unrestricted service. The updated Guide also provides requirements for owners that are interested in route-specific on-deck container stowage for 11 of the most traded routes and introduces optional procedures for addressing the requirements. Owners and operators of containerships are looking for ways to improve the efficiency of their ships within safe limits, says ABS Chief Technology Officer Todd Grove. The updated Guide provides ABS practical technical solutions that will allow industry to properly The updated Guide now includes notation requirements for container stowage that take into account the specific wave environments for particular trade routes. An additional notation is available when onboard lashing computer programs are certified to the updated Guide. ABS has invested significant effort studying the motion responses of a large number and broad range of existing containership designs especially 6,000 teu in size and larger in various wave conditions following multiple trade routes. ABS also has worked closely with owners, designers and lashing system providers to seek their input. Ç The ABS Guide for Certification of Container Securing Systems (Pub 45) is available for free download from the ABS website at Navigate to Resources, Rules & Guides, Downloads. ABS BookShelf ABS Releases Guide for Pre-Laid Position Mooring Systems ABS has released criteria to meet offshore industry demand for optional classification notations covering pre-laid position mooring systems and equipment for mobile offshore units. The ABS Guide for the Classification Symbols Pre-Laid Position Mooring Systems and Equipment for Mobile Offshore Units outlines the requirements for the classification of mooring system components carried on board an offshore unit. The P-PL and M-PL notations are available for offshore units that satisfy ABS mooring system requirements. According to Mike Kei, ABS Principal Engineer, Singapore Engineering, the Guide recognizes that a significant portion of the mooring equipment of pre-laid systems including anchors, piles, chains, cables and buoys typically are installed and connected on the seabed prior to a mobile offshore unit s arrival on location. The Guide addresses those items that the mobile offshore unit operator typically carries on board, such as winches/windlasses and top chain or wire rope. Ç The ABS Guide for the Classification Symbols Pre-Laid Position Mooring Systems and Equipment for Mobile Offshore Units (Pub 205) is available for free download from the ABS website at Navigate to Resources, Rules & Guides, Downloads. ABS BookShelf PAGE 16 ACTIVITIES JULY 2014

17 rules & guides Recently Released ABS Rules & Guides ABS BookShelf ABS Rules and Guides are available for purchase and/or free download directly from the website at Subscribe online to receive notifications when new publications or notices are available. The following listing reflects Rules and Guides updates from 1 February to 31 July RECENT PUBLICATIONS Guide for Systems Verification, July 2014 (Pub 189) Initially released in 2012, this updated Guide provides requirements and recommendations for software verification of integrated and non-integrated control systems aboard ships or offshore assets. The criteria are applicable during the initial construction and anytime during the life of the asset and also may be used for new, modifications, retrofits, replacements or upgrades of computer-based control systems. This publication is available for download or print on demand. Guide for Hydrocarbon Blanket Gas System, July 2014 (Pub 207) This Guide addresses the arrangements where hydrocarbon produced gas is used as a blanketing gas to maintain a non-explosive atmosphere inside the cargo storage tanks of ABS-classed floating production units. Design and installation requirements presented in this Guide are based on existing industry practice and criteria employed by ABS in review of such systems that are deemed to provide an adequate level of safety equivalent to traditional inert gas systems. This publication is available for download or print on demand. Guidance Notes on the Implementation of Human Factors Engineering g into the Design of Offshore Installations, July 2014 (Pub 208) These Guidance Notes provide a strategy for integrating and implementing human factors engineering (HFE) into the design process as a way to help improve human performance and personnel efficiency and reduce safety risks associated with working and living on offshore installations. This publication is available for download or print on demand. Guidance Notes on Noise and Vibration Control for Inhabited Spaces, July 2014 (Pub 209) These Guidance Notes provide guidance on how to control levels of noise and vibration in inhabited spaces. To be granted any of the associated habitability notations, specific noise and vibration criteria must be met. This publication is available for download or print on demand. Guidance Notes on Dynamic Analysis Procedure for Self-Elevating Units, February 2014 (Pub 124) These Guidance Notes should be used in conjunction with the ABS Rules for Building and Classing Mobile Offshore Drilling Units for the purpose of ABS classification of a self-elevating drilling unit. This publication is available for download or print on demand. Guidance Notes on Springing Assessment for Container Carriers, February 2014 (Pub 172) These Guidance Notes provide detailed procedures for the assessment of springing loads and the subsequent structural fatigue damage for container carriers. The technical background is based on direct analysis of hydrodynamic load and structure dynamic response. This publication is available for download or print on demand. Guidance Notes on Whipping Assessment for Container Carriers, February 2014 (Pub 173) These Guidance Notes contain procedures for the assessment of whipping loads and subsequent structure strength for container carriers. The technical background is based on the direct analysis of slamming load and structure dynamic response. This publication is available for download or print on demand. Guidance Notes on Global Performance Analysis for Floating Offshore Wind Turbine Installations, February 2014 (Pub 206) These Guidance Notes provide suggested global performance analysis methodologies, modeling strategies and numerical simulation approaches for floating offshore wind turbines. The guidance should be used as a supporting document to the ABS Guide for Building and Classing Floating Offshore Wind Turbine Installations. This publication is available for download or print on demand. ACTIVITIES JULY 2014 PAGE 17

18 rules & guides notices & corrigenda GENERIC RULES Part 1 Rules for Conditions of Classification Ships (2014) Corrigenda, July 2014 Part 1 Rules for Conditions of Classification High Speed Craft (2014) (Pubs 61 and 109) Corrigenda, July 2014 Part 2 Rules for Materials and Welding (2014) Rule Change Notice 1, July 2014 Corrigenda, July 2014 Part 7 Rules for Survey After Construction (2014) Rule Change Notice 1, July 2014 Corrigenda, July 2014 notices & corrigenda Pub 2 Rules for Building and Classing Steel Vessels (2014) Rule Change Notice 1, June 2014 Rule Change Notice 2, July 2014 Corrigenda, July 2014 Pub 4 Rules for Building and Classing Steel Vessels for Service on Rivers and Intracoastal Waterways (2014) Corrigenda, July 2014 Pub 107 Guide for Building and Classing Liftboats (2014) Corrigenda, July 2014 Pub 109 Rules for Building and Classing High Speed Naval Craft (2014) Rule Change Notice 1, July 2014 Corrigenda, July 2014 Pub 5 Rules for Building and Classing Steel Vessels Under 90 Meters (295 Feet) in Length (2014) Rule Change Notice 1, July 2014 Corrigenda, July 2014 Pub 115 Commentary on the Guide for the Fatigue Assessment of Offshore Structures (2004) Corrigenda, July 2014 Pub 6 Rules for Building and Classing Mobile Offshore Drilling Units (2014) Rule Change Notice 2, July 2014 Corrigenda, July 2014 Pub 121 Guide for Survey Based on Reliability-Centered Maintenance (2003) Corrigenda, July 2014 Pub 7 Pub 8 Rules for Building and Classing Underwater Vehicles, Systems and Hyperbaric Facilities (2014) Corrigenda, July 2014 Rules for Building and Classing Single Point Moorings (2014) Corrigenda, July 2014 Pub 10 Rules for Building and Classing Steel Barges (2014) Corrigenda, July 2014 Pub 11 Rules for Building and Classing Steel Floating Dry Docks (2009) Corrigenda, July 2014 Pub 169 Guide for Building and Classing Floating Offshore Liquefied Gas Terminals (2010) Rule Change Notice 5, June 2014 Corrigenda, June 2014 Pub 176 Guide for Building and Classing Bottom- Founded Offshore Wind Turbine Installations (2013) Corrigenda, July 2014 Pub 180 Rules for Building and Classing Offshore Support Vessels (2014) Rule Change Notice 1, July 2014 Corrigenda, July 2014 Pub 45 Pub 61 Pub 82 Guide for Certification of Container Securing Systems (2010) Rule Change Notice 2, April 2014 Corrigenda, April 2014 Rules for Building and Classing High Speed Craft (2014) Rule Change Notice 1, July 2014 Rules for Building and Classing Floating Production Installations (2014) Corrigenda, July 2014 Pub 185 Guide for Integrated Software Quality Management (ISQM) (2012) Corrigenda, July 2014 Pub 191 Guide for Dynamic Positioning Systems (2013) Corrigenda, July 2014 Pub 193 Guide for Portable Accommodation Modules (2013) Rule Change Notice 1, May 2014 Corrigenda, May 2014 Pub 106 Guide for Building and Classing Gravity-Based Offshore LNG Terminals (2010) Corrigenda, July 2014 Pub 195 Guide for Building and Classing Floating Offshore Wind Turbine Installations (2013) Corrigenda, July 2014 PAGE 18 ACTIVITIES JULY 2014

19 ABS members ABS Membership Plaques James Watson, ABS Americas Division President and COO, looks on while Edward Scott, COO, Excelerate Energy, receives an ABS membership plaque from Tony Nassif, ABS Executive Vice President and COO. Huang Ru-Tang, Deputy Director of Fujian Southeast Shipyard, receives an ABS membership plaque from Darren Leskoski, ABS Regional Vice President, Central China. Derek Novak, ABS Vice President, Operations, Pacific Division, presents an ABS membership plaque to Gyung-Jin Ha, President and CEO of Hyundai Samho Heavy Industries Co., Ltd. Thomas Tan, ABS Regional Vice President, South Pacific, presents an ABS membership plaque to Sam Yong, CEO and Deputy Managing Director of Sealink International Bhd. Darren Leskoski, ABS Regional Vice President, Central China, presents an ABS membership plaque to Xiao Sen-Yuan, Vice President, SITC International Holdings Co., Ltd. Eric Kleess, ABS Pacific Division President and COO, presents an ABS membership plaque to Choong-Heum Park, President and CEO of Samsung Engineering Co., Ltd., as Andre Han, ABS Vice President of Business Development, Korea looks on. ACTIVITIES JULY 2014 PAGE 19

20 abs members Eric Kleess, ABS Pacific Division President and COO, presents an ABS membership plaque to Young-Man Lee, President and CEO, DSEC Co., Ltd. Derek Novak, ABS Vice President, Operations, Pacific Division, presents an ABS membership plaque to Wong Bheet Huan, Non-Executive Director and Advisor, Triyards. Kirsi Tikka, ABS Europe Division President and COO, presents an ABS membership plaque to Katharina Stanzel, Managing Director, Intertanko. Darren Leskoski, ABS Regional Vice President, Central China, presents an ABS membership plaque to David Wu Wei-Hua, Managing Director of Landmark Corporate Holdings. Tony Nassif, ABS Executive Vice President and COO, presents an ABS membership plaque to Hyon-Soo Bong, Executive Advisor, Hanjin Heavy Industries and Construction Co., Ltd. From left: Yeong-Dong Moon, ABS District Principal Surveyor; Myung-Jai Joo, ABS Korea Country Manager; Eric Kleess, ABS Pacific Division President and COO; Tony Nassif, ABS Executive Vice President and COO; Hyon-Soo Bong, Executive Advisor, Hanjin Heavy Industries and Construction Co., Ltd.; Yoon Moon Tae, Executive Managing Director, Hanjin Heavy Industries and Construction Co., Ltd.; and Thomas Blenk, ABS Regional Vice President, Northern Pacific. PAGE 20 ACTIVITIES JULY 2014