Published by Stena Drilling — Moving a drillship is a complex process that requires extensive planning, coordination, and execution. Richard Wells, International Logistics Manager at Stena Drilling, shares insights into the steps involved in relocating a rig, from the initial tender process to final integration in a new country.
“When I first joined Stena Drilling, it was made very clear to me that we must remember that we are guests in a country and must respect and support the countries we work in. I am often the first person people meet from Stena Drilling, and first impressions count!”
The Initial Planning Phase
Every rig relocation starts with a tender process. All departments, especially commercial, financial, and operational teams, assess the potential new location. This involves evaluating legal and financial risks, structuring corporate operations, and considering regulations, taxes, duties, and insurance requirements. If awarded the contract, an Operations Engineer is assigned as the primary liaison with the client. Richard then visits the country to assess corporate setup, infrastructure, and logistical needs.
Vetting Local Suppliers and Compliance
Setting up operations in a new country requires ensuring that all third-party suppliers align with Stena Drilling’s standards and values. Local vendors undergo a rigorous vetting process, including background checks and contract agreements covering anti-bribery and corruption policies. This ensures ethical operations and compliance with international and company-specific regulations.
Importing a Drillship: A time-consuming process
The time required to import a drillship varies by country. Nations with stringent regulations, like Canada and Ghana, require extensive preparation, including registering with local petroleum regulators, setting up corporate entities, training local labour, and undergoing thorough vendor approval processes. These setups can take six to nine months. In contrast, countries with less developed regulatory frameworks can complete the process in 60 to 90 days, though unique challenges often arise due to regulatory inconsistencies.
The physical import of the vessel can be completed remotely or in person via helicopter transfer of customs, immigration, port health, and environmental officers. Our vessels carry a lot of third-party equipment and cargo, so it is crucial that all paperwork is completed correctly and submitted to authorities promptly to ensure efficient clearances upon arrival.
Coordination Across Departments
A rig move involves nearly every department within Stena Drilling. The finance team assesses taxation and corporate setup, while the operations team manages drilling needs and permitting requirements. HR handles international and local employment and training requirements. Marine teams oversee the physical movement of the rig and third-party vessel engagement, and HR logistics personnel handle visas, crew accommodations, and regulatory compliance. Security and environmental teams ensure the rig’s safe and legal entry into a new region.
Cross-border Movements and Environmental Considerations
Moving a rig across international borders involves numerous legal and environmental considerations. Countries like Israel require hull cleaning before entry, while others impose strict waste disposal regulations. Stena Drilling works closely with clients, local agents, and governmental authorities to ensure full compliance with environmental and safety regulations.
Economic Impact and Community Engagement
Bringing a drillship into a country has a significant economic impact. In Guyana, for example, Stena Drilling has spent over USD 85 million with local vendors and now employs 157 Guyanese personnel since operations commenced in 2016, contributing to local economic growth. The company also prioritises community engagement, creating employment opportunities and building long-term partnerships with local businesses.
Challenges and Rewards of Global Operations
Each new location presents unique challenges, from navigating unfamiliar regulatory landscapes to ensuring cost-effective logistics. However, the experience of working in diverse environments and meeting influential industry figures makes the job exciting and rewarding. With around 50 relocations under his belt, Richard finds that while he draws upon his experience to support each relocation, there are always new learning opportunities, ensuring that no two days are ever the same.
In an industry where precision and planning are paramount, the ability to adapt and execute complex logistical operations is essential. The successful relocation of a drillship is a testament to the teamwork, expertise, and meticulous planning that goes into each move, ensuring that Stena Drilling continues to operate efficiently across the globe.
“I am unlikely to meet the Secretary of Energy in the UK or the U.S., but in many of the countries we operate in, I get to meet and work with some very interesting people, which can be challenging but always insightful.”
