Personnel transfer to and from offshore platforms by helicopter is a fundamental part of upstream operations, and increased investment in drilling projects is fuelling a leasing boom. Julian Turner talks to Gazprom and Samantha White of Air Charter Service about safety imperatives, the financial benefits of the leasing model and advances in rotorcraft technology.
The offshore oil and gas sector remains one of the world’s most heavily scrutinised and regulated industries. Countless white papers and column inches have been dedicated to advancements in personnel and process security, as well as evolving health, safety and environment (HSE) legislation covering every aspect of hydrocarbon exploration and production (E&P).
Conversely, high-profile failures, such as the 2010 Deepwater Horizon disaster in the Gulf of Mexico (GoM) and its concomitant legal battles, have also been exhaustively documented and debated by industry insiders, legislative bodies, the mainstream media and wider society.
However, one fundamental aspect of industry practice – that of personnel transfer by helicopter from the mainland to offshore platforms – remains
relatively unpublicised.
More than 62 million passengers flew to and from offshore installations in the British North Sea by helicopter between 1976 and 2012, according to the UK’s Civil Aviation Authority, and with investment in offshore drilling estimated to grow by just over 8% a year on average through to 2020, that figure is set to increase.
Safety first
In October, a fatal accident inquiry will take place into the deaths of 14 offshore workers who died when their AS332L2 Super Puma crashed during
a return flight to Aberdeen, Scotland, from BP’s Miller oilfield in the North Sea. Two crewmen working for Bond Offshore Helicopters also lost their
lives in the 2009 tragedy.
In 2012, two ditchings in the North Sea involving the same type of helicopter, the EC225 Super Puma, once again propelled the issue of personnel transfer to the top of the industry agenda.
The issue is by no means limited to the UK Continental Shelf. In the last five years, there have been 15 fatalities as a result of helicopter accidents in the GoM, and many more worldwide. According to a recent Reuters report, helicopters performing offshore crew changes may rack up 1,500 hours of flight time every year.
"Maintenance of offshore platforms involves the guaranteed performance of the flight task, regardless of the weather conditions and time of day," says a spokesperson from global energy company Gazprom’s information directorate.
"Even when flying over featureless terrain and water surfaces in fog, rain and poor visibility, the crew must accurately determine the location of
the platform and perform a safe landing. In this regard, helicopter operators are increasingly focusing on not only the specifications of the craft,
but also on specialist crew training."
All Gazprom offshore shift personnel and helicopter crews undergo helicopter underwater egress training (HUET) to prepare them for emergency exit in the case of a crash landing over water.
Technological advances aimed at improving safety include onboard health and usage monitoring systems (HUMS), multilateration flight-surveillance
systems that track helicopters beyond the range of existing radar, and improved radio communications using VHF rebroadcasting.
Helicopter manufacturers are also evaluating helicopter design, improved maintenance techniques, and enhanced training programmes for air and helideck crews, radio operators and logistics staff.
The helicopter-leasing boom
Upstream operators are entering increasingly inhospitable environments in search of dwindling hydrocarbon reserves, fuelling a boom in helicopter leasing and manufacturing. According to Reuters, in 2011, 70% of General Electric’s rotorcraft engine sales were to US and foreign military forces; by 2016, that figure will shrink to only 30%, with the oil and gas sector accounting for much of the rest.
The financial and operational benefits of helicopter leasing are many and varied. In terms of value depreciation, helicopters represent a much smarter investment – larger, fixed-wing aircraft may be worth just 50-60% of their purchase price after ten years, compared with 70-80% for helicopters over the same time frame.
"There are significant advantages to leasing helicopters," said Lease Corporation International CEO Mike Platt recently. "If you are buying an aircraft, you have to take on debt. The loan-to-value ratio [allowed by banks] is going down every year and is currently only about 75-80%, so high
down payments are required and there is no real return on these."
Other benefits of the leasing model include no equity payments, shorter lead times for equipment delivery, tax deductibility, off-balance-sheet
financing, minimal overhaul and maintenance costs, and flexibility on short or long-term leases.
Renting a helicopter for offshore operations can cost upstream companies up to £4,500 an hour. For that type of outlay, multinationals demand the very latest rotocraft technology that can fly at high speed over long distances, since oil rigs are increasingly built in deep water far from shore.
"Offshore platforms are very complex facilities, which constantly need passengers and cargo, and rescue and medical support, explains the Gazprom spokesperson. "The main requirements for helicopters performing offshore transportation are reliability, security, haul length, all-weather capability and the ability to perform night flights."
Chartering new territory
Oil and gas companies also spend significant amounts transferring personnel to coastal hubs ready for the journey to offshore locations. For this, they tend to use commercial jets sourced by specialist charter services with global reach.
Air Charter Service (ACS), based in Surrey, UK, operates 6,500 charters a year and employs more than 200 brokers and aviation specialists in 16 offices worldwide.
"From a commercial jets viewpoint, I focus 90% of my time on the oil and gas industry, and we are involved with a lot of companies around the world procuring aircraft for their crew changes," says Samantha White, senior charter analyst at ACS.
"For example, a client may need to fly 25 people from London, Paris or Amsterdam to an offshore vessel in Africa, where they may spend a day or a night. We would then arrange to fly the so-called ‘off-signers’ back home to Europe.
"The type of aircraft we use depends on the route and the number of passengers. Aberdeen up to the Shetland Islands is only an hour-long flight, but it’s a very short runway, so we can only operate turboprop aircraft such as the Dornier 328, a Saab 2000 or a Fokker 50."
Compliance with clients’ internal HSE regulations, and those of official industry and government bodies, is also a priority, as White explains: "An oil company in Europe will have to adhere to very different rules and regulations to one operating in, say, Africa. It’s the job of our internal compliance department to ensure the client has valid insurance and an operator’s certificate. The oil companies will also have a list of the airlines that satisfy their strict HSE regulations.
"All oil and gas companies require airlines to meet the basic aviation risk standard (BARS), which requires an in-depth audit – everything from the freight they have and how many hours the crew work, down to the financials of the company – which can take days or weeks.
"In the last five years, the price of air charter services has risen considerably as a result of increases in general airline costs, most obviously, fuel. It’s down to supply and demand; aircraft operators know that they are near to key strategic locations and are able to offer the service at a premium," she adds.
As for the final stage of the oil worker’s journey, from the coast to the rig itself, helicopters remain the most efficient method of transport, despite cost and safety concerns.
"There are three ways to transport personnel and equipment to the platforms: by ship, by seaplane or by helicopter, and each method has its advantages and disadvantages," says the Gazprom spokesperson.
"Despite the high cost, delivery by helicopter is preferable, since such traffic is independent of the surge of the sea, and can provide higher speed and efficiency than aircraft and ships."