Drilling Risks & Well Control Insurance

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THE VULNERABILITY OF
GULF OF MEXICO SHIPYARDS
TO COASTAL FLOODING
AS A RESULT OF STORM SURGE
By Capt. Christopher Bowman
 Increasing Number of Deepwater Projects
Increasing complexity and size enhances exposure and costs.
 Flooding Risk Has Always Been There
The value of the assets has changed, subsequently changing the risk.
 Storms Appear More Intense and Unpredictable
The need for more thorough contingency planning to improve risk
identification and risk mitigation.


Who Benefits From Contingency Procedures?
•
Underwriters – Reduced Risk Exposure
•
Brokers – Representation of Competent Assureds
•
Assureds – Minimize Damages to Assets / Project Delays
•
Shipyards – Minimize Damages to Assets / Equipment
•
Government – Reduce Risk to Infrastructure
•
Civilian Population – Reduced Risk to Personal Properties
Three Cases Different Unique Risks in the Gulf of Mexico
•
Pascagoula, MS / Mobile, AL
•
Ingleside, TX
•
Brownsville, TX
Pascagoula/Mobile
Mississippi and Alabama Coastline without Coastal Flooding
Mobile
Pascagoula
Pascagoula/Mobile
 Deepwater Commercial Seaport:
•
Break-Bulk Cargoes
•
Containerized Cargoes
•
Petroleum Cargoes
•
Heavy-Lift Cargoes
•
Terminal Facilities
Pascagoula/Mobile
 Potential Risks To:
•
Vessel Fabrication / Repair Shipyards
 Semi-Submersible Rigs
 Large Dry-Docks
 Shipyard Facilities
Pascagoula/Mobile
Pascagoula and Mobile with Coastal Flooding Due to a Category 5 Hurricane
Mobile
Pascagoula
Pascagoula
Mobile
Pascagoula/Mobile
 Mitigating The Risks:
•
Timely and Reliable Weather Forecasting
•
Open Communication Between Port Authorities / USCG / Terminals
•
Contingency Procedures with Time-line Triggers
•
Engineered Mooring Plans
 Adequate Mooring Appurtenances
 Mooring Bollard / Bitt Capacities
 Accurate Water Depths
 Overburden
Ingleside
Texas Coastline Surrounding Ingleside without Coastal Flooding
Ingleside
Ingleside
 Potential Risks To:
•
Major Offshore Oil & Gas Projects
 Production Decks / Components
 Jacket Structures
 Floating Production Units
Ingleside
 Major Offshore Projects:
Ingleside
Ingleside with Coastal Flooding Due to a Category 5 Hurricane
Ingleside
Ingleside
Ingleside

Mitigating The Risks:
•
Shipyard Project Bridging Document
•
Engineered Mooring Plans
 Adequate Mooring Appurtenances
 Accurate Water Depths
 Overburden
Ingleside
Engineered Mooring Plan For Storm Surge / High Winds
Brownsville
Texas Coastline Surrounding Brownsville without Coastal Flooding
Brownsville
Brownsville
 Potential Risks To:
•
Jack–Up Drilling Rig Fabrication / Repair Shipyards
 Jack-Up Drilling Rigs
Brownsville
Brownsville with Coastal Flooding Due to a Category 5 Hurricane
Brownsville
Brownsville
Brownsville
 Mitigating The Risks:
•
Location Approvals / Site Assessments for Jack-Up Rigs
 Site Specific Soils Analysis
 Hull / Leg Wind-Load Calculations
 Preload Requirements
Summary and Conclusions

Gulf Coast Shipyards will always be exposed to the threat of severe coastal
flooding arising from any given tropical event.

The risks and exposures to these facilities is always changing, driven by
season and current scopes of work.

Assessing the risks and exposures frequently is essential to insure that
Contingency Plans and Hurricane Preparedness Plans are up to date for the
current scopes of work.

Contingency Plans and Hurricane Preparedness Plans have a significant
financial impact on these facilities as they often require volumes of resources,
advance planning time and adequate time for full implementation.

Shipyards carry the burden to protect their assets, the assets of their Clients,
the financial impacts to insurance markets and to reduce the potential for
interruptions to the global offshore oil and gas industry.
QUESTIONS?
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