Arnaud Dianoux, Founder and Managing Director of Opsealog, explained how data collection and analysis are enabling significant fuel savings in the offshore support vessel industry sector and includes a case study from Opsealog’s work with ADNOC, where digitalisation reduced fuel costs and emissions by 12%:
A variety of factors are encouraging investments in energy and fleet efficiency within the offshore support vessel (OSV) sector, with a strong focus on fuel efficiency. The sector is at a pivotal point. Following years of slow growth, 2023 saw a significant rebound in the market, which continues into 2024. Major oil producing countries, particularly in the Middle East and North America, are pushing for increased production, which is driving up demand for drilling rigs, subsea construction boats, and OSVs. This surge in demand has led to higher utilisation rates, increased term-charter and spot market day rates, and a tighter market.
Increased day rates and a shortage of vessels are making it imperative for charterers to improve fuel efficiency and manage costs effectively. One significant contribution to this is by optimising fleet management processes – for example, streamlining maintenance schedules – to ensure fleet availability in fluctuating demand cycles. Through the use of digital systems, charterers can better monitor operations, identify optimal fleet sizes, and reduce overall expenses.
For shipowners, the tight market and attractive rates incentivize maximising vessel availability. This is compounded by the increased cost of crew and equipment maintenance and upgrades. Further to this, higher interest rates and uncertain regulations make newbuild orders less appealing. Instead, the focus is on maximising the current fleet’s technical availability.
The OSV industry’s appetite for investment in new assets, technologies, or digital systems is closely linked to market conditions, which has seen a ‘wait and see’ mentality across not just the OSV sector but also the global maritime market. But as fuel prices rise and the market tightens, incentives are growing stronger to optimise operations, reduce costs, and invest in technologies that will enable access to data that will aid decision-making in the future. Digitalisation is emerging as a key strategy to achieve these goals, offering a low-hanging fruit solution to improve fuel efficiency and reduce costs.
Bringing data into play
Data plays a crucial role in unlocking operational efficiencies, optimising marine logistics chains, reducing fuel consumption, and minimising greenhouse gas emissions. Comprehensive data collection and analysis allows companies to benchmark progress, measure the impact of future initiatives, and prepare for incoming regulations.
From a regulatory perspective, while OSV operators are not yet required to comply with the EU Emissions Trading System (ETS), future regulations will likely mandate compliance. From 2027, offshore ships above 5,000 gross tonnage will be included in the ETS, while the EU MRV will be extended from 2025 to apply to offshore ships above 400 GT, with additional regulations expected to follow.
Pushed by the public’s demand for more sustainable practices, stakeholders, including energy majors, are increasingly requesting reductions in upstream emissions.
By leveraging data-driven insights, companies can be proactive in their decarbonisation efforts. Enhancing data collection, integration and analysis enables them not only to comply with regulations, but also to unlock new insights to enhance operational, financial, and environmental performance. For example, 10-15% fuel and emissions savings are typically delivered through Opsealog’s data collection, management, and analysis processes. This is a win-win, saving fuel costs as well as emissions with no risk or upfront investment.
The fuel efficiency landscape
The OSV industry exemplifies the challenges and potential of digital solutions in enhancing fuel efficiency. A prime example is Opsealog’s experience with ADNOC Logistics & Services (L&S), the logistics arm of ADNOC Group.
Opsealog’s initial proof-of-concept trial with 11 of ADNOC L&S’ vessels achieved a remarkable 12% reduction in fuel consumption and CO2 emissions. The results of a trial in 2021 saw ADNOC L&S embark on a long-term partnership with Opsealog, recognizing an opportunity to replace manual reporting processes with digital ones to improve speed, accuracy and support timely decision-making.
The digitalisation of ADNOC L&S’ vessel reporting processes marked a significant shift for the company, and has led to the deployment of Opsealog’s ”efficiency as a service” solution across a larger fleet of over 120 offshore supply vessels.
ADNOC L&S achieved these efficiencies through meticulous analysis and adjustments in operational practices, such as optimising engine running hours and implementing mooring buoys to reduce fuel consumption during idle times. This illustrates how digital solutions can transform traditional fuel and fleet management approaches, drawing on Opsealog’s role as a data integrator from multiple sources to enhance operational efficiency and environmental sustainability in the OSV sector.
The future of OSV operations
The OSV sector is on the cusp of a digital transformation that promises to drive fuel efficiency, reduce costs, and support decarbonisation efforts. By embracing digital solutions and leveraging data, the industry can navigate the challenges ahead and seize the opportunities presented by a rapidly evolving market.
As digitalisation progresses, its benefits will extend beyond fuel consumption and emissions reductions. Going forward, we can expect data-driven insights to also be used to support contract performance monitoring, enhance crew management, and improve billing accuracy.
For these benefits to be realised, however, collaboration between various industry players will be required. Effective data sharing within the OSV sector and beyond will be essential for enhancing the industry's safety, efficiency, competitiveness, and sustainability. However, this task is challenging due to varying levels of data maturity, privacy and security concerns, and technical obstacles. Despite these challenges, the advantages of data sharing are substantial, with the potential to foster innovation, improve decision-making, and optimise overall operations.
Furthermore, digital systems will also play a vital role in ensuring that health and safety standards are met. This includes data on drills conducted on board and stop work policy, which helps enforce safety standards and enables teams to be proactive to ensure safety. This shows the multifaceted potential of data in supporting not only operational, financial and environmental goals, but also in empowering the industry’s most important asset: its people.
Photo credit: Opsealog
Published: 25 June, 2024