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?