Formed from the ashes of Sea Trucks Group, new venture Telford Offshore is looking to make the most of the recovery amid projects that span the globe
When Sea Trucks Group (STG) went into liquidation in 2017, the liquidator and bondholders needed to maximise the value of the assets for the company’s creditors. Rather than continuing to operate the company in liquidation it was decided to establish a new entity, Telford Offshore, which officially launched in February this year with a fleet of four of STG’s DP3 multi-purpose offshore construction vessels (MPCVs).
“It was important to keep the assets working as much as possible and avoid medium- or long-term lay ups,” Telford Offshore chief executive officer Fraser Moore said.
Mr Moore had previously served as chief operating officer at STG until 2015; he was invited to return by the company’s board in 2017 to assist with stabilising operations and look at options for financial restructuring.
He added: “We felt that we had some fairly versatile assets that could compete in several market sectors and [we could] achieve sufficient utilization to maintain operational assets, ready for the long-awaited market recovery.”
“In addition, we had access to some excellent management resources looking for a new opportunity. This is a feature of a downturn, which is well understood but rarely taken advantage of.”
The company aims to position itself to take best advantage of the differing rates of recovery around the world, said chief operating officer Duncan MacPherson.
“In this time of uncertainty one thing is certain - whether short or long term, it’s going to require a lot of hard work”
“Presently Latin America has good activity levels for Telford Offshore, but we see strong opportunities for growth in Africa, Asia and the Middle East. For example, In Africa we will build further on our reputation as a leading deepwater accommodation provider, whilst in the Middle East we will look to explore opportunities within shallow water rigid pipelay.”
“We are presently exploring opportunities in India, where we see our differentiated assets capable of completing multiple different services can add value to project delivery for clients," he added.
Looking at a possible expansion of the company’s fleet, Mr Moore noted that while Telford is always looking out for assets that could add value to its business strategy, as a new company coming out of a restructuring “making a case for growth investment at this time would be challenging”. However, he noted there are achievable options for increasing fleet size in the short term: “In particular some assets are still held within STG and we continue to monitor their status.”
Any fleet expansion would likely come from existing tonnage, rather than newbuildings, said Mr MacPherson. “The industry in general has suffered from overbuilding and the supply/demand balance needs time to repair for the market to be better balanced and rates to be sustainable.”
Looking to the future, Mr Moore said that the “longer and deeper” nature of the downturn has caused additional uncertainty about the nature of a recovery.
Fraser Moore (Telford Offshore): "Versatile assets enable the company to compete in several market sectors"
“In the short term, Telford Offshore will continue seeking opportunities for our existing fleet by utilizing its multi-function capabilities mainly through JVs, chartering or smaller scale EPC-type contracts,” he said. “This has been our business plan and so far, so good.”
Further ahead, Mr Moore expects the company would look to enhance its onshore resource base to offer a broader range of services, which would focus on maximizing client value while making the best use of its assets. “In this time of uncertainty one thing is certain,” he added. “Whether short or long term, it’s going to require a lot of hard work.”
In November it was announced that Indonesian contractor Timas Suplindo had chartered a Telford vessel to work on the Terang Sirasun Batur phase two (TSB-2) offshore gas project.
Timas Suplindo had in turn been chartered by Kangean Energy Indonesia (KEI) to work on the project, which is located in the Kangean Block offshore the coast of East Java. KEI is jointly managed by EMP along with Japan Petroleum exploration and Mitsubishi Corporation.
Telford 25, the vessel under charter, is currently under planned drydock in Indonesia. The work scope will see it carry out installation of subsea structures, flexible pipes, umbilicals and spoolpieces. The MPCV is being fitted out with a saturation dive spread for the project, allowing it to undertake subsea installation and tie-in work.
The charter is for an initial period of three months with options to extend, and mobilisation of Telford 25 is expected to commence in Batam, Indonesia in late November.
Mr MacPherson commented at the time of the contract award: “We are very pleased with this contract from Timas Suplindo. Over the course of this project the T25 will demonstrate her versatility by supporting multiple activities such as flexible pipelay, saturation diving, lifting, subsea construction and installation services”
Telford 25 was built in 2009 by Jingjiang Nanyang yard in china. It has a length of 118.8 m, an extreme breadth of 36.4 m and a maximum draft of 8.94 m. It has a clear deck area of approximately 1,500 m2, with a load of 10 tonnes per m2.
Primary lifting capacity comes from a Huisman-Itrec mast crane with an 800-tonne capacity on the main hoist and up to 120-tonne capacity using three falls on the man-riding whip hoist. It is also equipped with a TTS Marine pedestal crane, the main hoist of which has a maximum capacity of 34 tonnes and a man-riding auxiliary hoist which has a maximum capacity of five tonnes.
The pipelay equipment is a starboard-mounted single-joint S-lay system under a dismountable firing line shelter. It can lay pipe of diameters from 4-48 inches and has two 60-tonne horizontal tensioners, a 120-tonne abandonment and recovery winch and a 120-tonne measuring sheave.
There is an electric-hydraulic telescopic personnel transfer gangway with an operational length of 36.5 m and a helideck suitable for use with the Sikorsky S-92A Helibus. There is fully air-conditioned accommodation for 355 persons, with individual bathroom facilities, and also a conference room, offices, cinema, gymnasium, recreation rooms, laundry, internet café and hospital.
The vessel is powered by four Caterpillar 1,825 kW CAT 3516 B diesel engines. Propulsion comprises a Rolls-Royce electrically-driven 1,355 kW bow thruster, two Rolls-Royce 1920 kW direct-driven diesel fixed-pitch azimuthing stern thrusters and four Rolls-Royce 1,920 kW direct-driven diesel retractable azimuthing fore-and-aft thrusters.
Telford 25 has previously undertaken a range of projects around the world. These include major installation activities for BHP’s Pyrenees Development, a major EPCI SURF project and Gard AS’ West Atlas Drill Rig decommissioning in Australia; topside installation for Chevron’s Delta South Project in Nigeria; topside installation for BP’s Greater Plutonio FPSO in Angola; lifting operations for Murphy Oil Kikeh in Malaysia; flexible pipe and umbilical installation for Shell’s Champion Waterflood SURF project in Brunei; and accommodation support for Inpex’s Ichthys project in Australia
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