Damen’s answer to stagnant oil prices lies in conversion support

Energy, Supply ships — By on March 29, 2016 at 12:29 PM
LFC 2000

LFC 2000

Damen’s answer to reduced oil prices lies in conversion support

Damen Shipyards Group has developed a committed response to the increasing number of laid up Platform Supply Vessels (PSVs) resulting from the current predicament facing the offshore oil and gas industry. The Dutch company’s solution involves converting idle PSVs into vessels capable of taking on roles in alternative sectors such as aquaculture, shipping and defence.

The situation that the offshore oil and gas industry is experiencing is having serious consequences throughout the sector. Compounding factors include historically low oil prices, halted exploration projects and reduced production. This vicious circle is completed by a substantial drop in support vessel day rates.

Damen has a solution to get these vessels active and profitable once again. “Our design teams have come up with workable ideas across several industries. For example, we can convert a laid up PSV into a profitable Container Feeder or, for naval operations, a Logistic Support Vessel, ” informs Damen Sales Manager Remko Hottentot. “The possibilities are numerous. It will also be possible to transform a PSV into an accommodation and O&M vessel”

LFC 3000 - an artist's impression

LFC 3000 – an artist’s impression

The ship conversion know-how stems from Damen’s worldwide network of fifteen repair and conversion yards. “With a strong reputation for engineering, craftsmanship and project management skills, Damen’s conversion teams are highly experienced in giving vessels a new lease of life, while staying on schedule and on budget, ” states Mr Hottentott.

One example of an already developed proposal is the Damen Live Fish Carrier 8916 for the aquaculture industry. “Here, the concept of using the existing PSV platform is ideal, yielding many advantages for live fish carrying situations.”

In addition to permanent conversion concepts, Damen can also create temporary designs. These can be applied to vessels originally built by Damen or other shipbuilding companies.

Based in Damen’s Stavanger office, Sales Manager Norway Remko Hottentot has witnessed the sight of ports and harbours dotted with laid up PSVs. “We can offer significant design and conversion expertise to owners and operators looking for effective solutions, ” he says. “In combination with reliable financing support, this makes up a unique combination of activities that can be translated into realistic conversion packages.

Damen Shipyards Group

Damen Shipyards Group operates 32 shipbuilding and repair yards, employing 9, 000 people worldwide. Damen has delivered more than 6, 000 vessels in more than 100 countries and delivers some 180 vessels annually to customers worldwide. Based on its unique, standardised ship-design concept Damen is able to guarantee consistent quality.

Damen’s focus on standardisation, modular construction and keeping vessels in stock leads to short delivery times, low ‘total cost of ownership’, high resale values and reliable performance. Furthermore, Damen vessels are based on thorough R&D and proven technology.

Damen offers a wide range of products, including tugs, workboats, naval and patrol vessels, high speed craft, cargo vessels, dredgers, vessels for the offshore industry, ferries, pontoons and superyachts.

For nearly all vessel types Damen offers a broad range of services, including maintenance, spare parts delivery, training and the transfer of (shipbuilding) know-how. Damen also offers a variety of marine components, such as nozzles, rudders, anchors, anchor chains and steel works.

In addition to ship design and shipbuilding, Damen Shiprepair & Conversion has a worldwide network of 15 repair and conversion yards with dry docks ranging up to 420 x 80 metres. Conversion projects range from adapting vessels to today’s requirements and regulations to the complete conversion of large offshore structures. DSC completes around 1, 500 repair and maintenance jobs annually.

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