Lay up of Offshore Vessels
Stacked Rig Management
Tough Decisions to Retire or Stack
Drilling contractors are faced with the unfortunate need to retire or cold stack their drilling units. For many of the older drilling units, the decision will most likely result in permanent retirement. There is also a trend to retire more and more units that are halfway through their projected life spans. These units are generally in good shape, have proven track records, but their specifications are slightly less than that of a later generation unit. Adding the time and costs for the required special surveys, preservation and reactivation can easily trigger the decision to retire a unit.
We also see more and more of the latest generation units being cold stacked. Owners make these decisions based on a high cost to keep the rig cold or hot, and fear that the downturn can last much more longer than originally anticipated.
Methods of Stacking
- Cold Stacking
The unit is fully preserved. Topside (drilling), hull side (hull and marine) and thrusters (where applicable) are removed. All certifications are lost and the rig is totally down manned. Cold Stacking has a high initial cost due to the preservation works and thruster removal (where applicable). High cost and time are required to reactivate the unit and recover its former certification. This is particularly true for the later generation units with complex systems on board, reactivation of which can result in unforeseen costs and delays. Once the unit is stacked, cold stacking results in a low daily cost to maintain the unit.
- Warm Stacking
The unit’s topside is fully preserved, all hull and marine systems remain operational and are maintained. All marine and class certifications remain up to date. The preservation and reactivation are only applicable to the topside equipment. Minimum crew levels are left on board to safeguard the unit and maintain all systems. Initial stacking and reactivation time and cost are less that these of cold stacking. Risks during reactivation are lower. Once the unit is stacked, the daily cost is substantially higher than cold stacking due to additional manning, fuel costs and maintenance of all systems.
No long-term preservation is done, all equipment is kept in a ready condition, certified and ready to operate. No preservation and only minor reactivation cost are associated with this type of stacking. Crew remains on board to periodically operate the equipment and to perform all the maintenance activities. The unit can be ready to operate within a short notice. Due to additional personnel required, cost of lubricants, consumables and fuels this is the most expensive way to stack the unit.
- Exclusive Stacking Method
Exclusive stacking is a unique stacking method developed by MNM Strategic Partners offering a complete peace of mind and unparalleled flexibility. MNM understands the dilemma unit owners are continuously confronted with. They are assessing the cost/benefits between cold, warm and hot stacking methods. MNM is now in a position to offer a more efficient way of protecting your assets and reducing the cost of cold and warm stacking , preservation and reactivation process. The unit is kept in an optimum condition and ready to operate, allowing the owner to take advantage of short-term drilling contracts.
Exclusive Stacking is an all-inclusive concept, offering the unit owner the benefit of a lump sum day rate inclusive of all consumables, logistics and port fees. Insurance is optional an can be included on client’s request.
Exclusive Stacking is a very cost-effective way to stack your idle unit. It typically cost 30-40% less than conventional hot stacking methods, and 10-20% less than warm stacking methods.
MNM Strategic Partners fully manage and man the stacked unit on your behalf with experienced professionals that will take full care of your unit(s). This includes certification, review and compliance with the latest OEM product bulletins (any equipment upgrades will be charged separately), maintenance, upkeep of your maintenance system, periodic operations of the equipment following a detailed checklist and other procedures necessary to keep your unit in an optimum ready-to-drill condition. By use of the unit the owner’s ERP system all the rig records are updated daily and kept in compliance with any regulatory requirements.
Exclusive Stacking processes are customised for every unit, ensuring an uncompromising maintenance schedule for the unit’s equipment.
- Only dedicated business partners will take care of the stacked unit(s)
- The unit is ready for deployment at any time, giving the drilling contractor the opportunity to take advantage of short duration projects
- The unit is ready for inspection by an operator at all times
- No need for major expenditure to cold stack the unit
- No need for major expenditure to reactivate the unit
- No risk of time delays and cost overruns during unit reactivation
- Highly competitive fixed all inclusive daily cost for the stacking period
- Flexible terms and conditions
- A monthly report providing you a complete overview of the status of your unit(s)
- Exclusive Stacking offers the best the best value preposition for stacking of your idle unit(s)
We operate from the following South African port:
- Saldanha Bay (Western Province)
- Cape Town (Western Province)
- Mossel Bay (Western Province)
- Coega (Eastern Province)
- Port Elizabeth (Eastern Province)
- East London (Eastern Province)
- Durban (Kwazulu Natal)
- Richards Bay (Kwazulu Natal)
MNM Strategic Partners keep your unit 100% for any drilling opportunities at a highly competitive daily rate. With only 20% utilization of the unit at market rate, Exclusive Stacking will work out cheaper than the cold stacking alternative. You will benefit at the same time unprecedented flexibility and avoid risks associated with delays to cold stack and reactivate your unit. This makes Exclusive Stacking the most cost-effective stacking method available on the market today.
Even with 0%unit utilization, Exclusive Stacking will push back the break even point with cold stacking years into the future. And you will always have an opportunity to benefit having your unit readily available in the market.
If a unit owner still decides to cold or warm stack the unit, MNM can provide full teams to perform these stacking options.
Ngamla Morgan Siwisa
Chief Executive Officer
Live: morgandebeer11 (skype)
+2783 698 0480 (mobile)
+2786 505 2571 (fax)