New approaches to contracting in 2018 – Early engagement with suppliers key to finding the right tool for the job

As we kick off 2018, suppliers in the oil industry find ourselves presented with a new set of challenges and opportunities. Despite a more optimistic – but still cautiously so - outlook overall than we saw at the beginning of last year, the lessons from recent years have become ingrained in the way that suppliers and oil companies work together, and have changed the dynamic in the procurement and contracting process. This was exemplified by a recent interview in Offshore Engineer[PJ1] , in which BP’s Global Projects Organization Head, David O’Connor, outlined a new approach to contracting. “In the past, we would tell our suppliers exactly what we needed and they would give us exactly what we asked for whether they could provide it easily or not.” BP has also begun engaging with suppliers earlier in the process. “No longer do we specify to them everything that we want - we look to them for their solutions to meet our requirements.”

This focus on early communication correlates very closely with Trelleborg’s approach. We always strive to get involved with partners as early as possible in a project, to ensure that we’re supplying the most suitable and cost-effective solution for the job when it comes to oil transfer, whether creating a bespoke product or choosing a solution from our extensive range of floating and submarine hoses.

With an increased responsibility on suppliers to present their most suitable concepts, it’s more important than ever that both sides understand the different factors in the selection of an oil hose, in order to ensure a transparent and meaningful discussion from the beginning. With a range of options on offer, there are many different factors to consider in the selection of a solution – following a detailed analysis of the environment in which a solution will function.

Key factors to consider at the selection stage are mechanical characteristics, such as the Bending stiffness value of an oil hose. This determines how much movement a hose will be able to withstand without affecting its performance. This is a crucial metric of performance for products that will either function for extended periods of time, or in particularly harsh environments. With Wood Mackenzie anticipating a trend of focused exploration, looking for ‘deepwater sweet spots[PJ2] ’, it will be vital to consider how products will function in environments with heavy wave and weather conditions. Similarly, with many projects replacements and upgrades that have been delayed for some years, companies will need to think carefully about whether selecting solutions with longer service life can lead to healthier opex in the long term – particularly for subsea hoses, where replacement procedures can be particularly complex and expensive.

Other key properties include tensile, torsion and bending stiffness, as well as bending and axial load resistance, which also affect the range of environments and length of service life that can be specified.

 A key differentiator here is the difference between nipple hoses and nippleless hoses. Single or double carcass nipple hoses are often the most suitable solution for non-harsh, low-cost extraction environments. In this design, binding steel wires fixed to the nipple flange attach it to a hose body structure made with textile layers and reinforced with a steel helix. This type of hose is the most commonly used in today’s market, in both floating and submarine configurations.

A nippleless hose excludes the stiff metal connector used in nipple hoses, to increase flexibility. Instead, it carries a flange, which is embedded in the rubber itself. This reinforced flange design, combined with an integrated bending stiffener, can then be used to create a hose that survives harsher conditions for longer. Nippleless hoses can be optimised for reeling applications, which is essential for saving space on deck, vital in FPSO operations. There are ‘off the shelf’ options for nippleless hoses such as Kleline, certified to GMPHOM 2009 guideline, as well as the potential to create bespoke solutions in line with API spec 17K standard, as available in the Trelline range.

When it comes to selection, suppliers’ guidance, based on extensive technical knowledge, is invaluable. Different levels of specialisation will be necessary depending on each project, and suppliers need to act as trusted advisors to recommend the best solution. As the trend from both sides of the contracting relationship trends towards a more collaborative approach, it’s more important that suppliers add value not just by meeting specifications; but by sharing expertise and actively contributing to the creation of optimum solutions.