… to final
product Quality 100% made in Germany –
Distributed world wide
FAHLKE – the pioneer
in subsea automation with
45 years of experience!
Our customers benefit from more than four decades of continuous development in manufacturing high quality subsea actuators and control units.
You can take advantage of our experience for
innovative products as pipeline automation from
platforms up to onshore gas facilities.
Fahlke provides you with 90° or linear subsea
chamber tested hydraulic/pneumatic valve actuator solutions in double-acting and spring-return
with ROV adaptions, diver couplings or specially
designed units as our safety shutdown units.
Fahlke Control Systems KG | Rudolf-Diesel-Str. 3 | D-27356 Rotenburg | Tel.: + 49 4261 9143-0 | firstname.lastname@example.org | www.fahlke.de
Power and Performance
DEEPWATER MARKET REVIEW
knowledge and confidence, as the pressure
of work turnaround necessitates its speedy
completion. It must be appreciated that, in
operational situations, sometimes there is
very little time to wait, unlike in cases of design activities. A different breed of engineers
with deep understanding, challenging spirit,
and lateral thinking are needed, at least, as a
mentor and quality assurance guide.
Typically, a service contract is made to
perform routine sustaining engineering and
other agreed-to activities. Generally, it is
simple and better with a lump-sum per year
contract, depending on the number and type
of assets and anticipated volume of work.
However, other forms of contract may
work as well. Actual logistics of work flow
management, quality assurance, traceability
of work, and documentation control have
to be agreed, established, and aligned with
respective systems of operations in place.
Once a contract is placed, the sub-contractor
allocates dedicated engineers for immediate
attention to client’s work need. At least once,
this type of contract was successfully applied
in the mid 1980s between a drilling company
and a consulting engineering company.
These types of service contracts may be
extended to other types of activities as well,
In some ways, the system works like an
insurance concept, especially when there
are multiple contracts with different compa-
nies. Once such a system is in place, it may
also be extended to brownfield activities,
which could thereby benefit from reduced
administration costs and shorter schedules.
The confidentiality aspect, in terms of
platform and vessel details, should not be
a concern at all. Consulting engineers, contractors, and sub-contractors simultaneously work on multiple projects from different
clients without divulging information, a professional code of conduct. Besides, in most
cases, there will be no sensitive information
on the type of work depicted here.
US deepwater projects can be economi-
cally viable at current oil prices, provided
costs can be brought down to a level aligned
with the realistic 3% inflation. It will require
dedicated leadership, good discipline and
control on capex and opex, and innova-
tion in technology and operations from all
stakeholders through the full cycle of the
oil and gas industry. It is a paramount chal-
Now is the time to reorganize and restructure to become lean and efficient, verify,
validate, and to implement cost saving operational procedures such as innovative subcontracting.
Empowered champions with vision must
take the lead to step changes in technology
and in operations, challenging the status
quo. Otherwise, the high cost of deepwater
development will continue to be a barrier
to future projects, especially in the cases of
The industry cannot wait for oil prices to
rise so that they can match the present level
of cost. Rather, we need to proactively learn
to live with the “new normal” price. From
time to time, the price will rise to more than
$44/bbl due to outside influences, and that
will be windfall gain. Such gains should then
be used wisely. Perhaps, spending a portion
in future research will improve safety, reduce cost, and increase net oil recovery. •