Abstract
Oil companies are gradually becoming more focused on optimizing their upstream logistics. However, little research regarding upstream logistics has been published. We argue that more research would be beneficial and that more attention must be given to one of the largest cost elements in the upstream chain – the supply vessels. We explore the supply vessel as a means of transport and carry out a logistics analysis based on their use on the Norwegian continental shelf. Carrying capacity, sailing, loading and unloading capabilities are established as the main features of a supply vessel. Thereafter we discuss relevant logistical trade-offs within and among these features, and also in relation to the environment the vessels operate in. This elaboration clearly shows the complexity involved when searching for the ‘optimal’ supply vessel. The analysis also indicates the design and logistics system features that should be challenged in the future. We believe that the findings in this article will be of considerable value for both practitioners and academics.
Similar content being viewed by others
Notes
The average rent for supply vessels in the category over 762 m2 was for 2007 approximately €36 000 per day, Offshore Shipbrokers Limited (2008).
1 knot=1 nautical mile/hour=1852 m/hour.
References
Aas, B. and Wallace, S.W. (2009) Management of Logistics Planning. Molde, Norway: Molde University College. Working paper, No. 1.
Aas, B., Buvik, A. and Cakic, D.J. (2008) Outsourcing of logistics activities in a complex supply chain: A case study from the Norwegian oil and gas industry. International Journal of Procurement Management 1 (3): 280–296.
Aas, B., Gribkovskaia, I. and Halskau, ∅. (2007) Routing of supply vessels to petroleum installations. International Journal of Physical Distribution & Logistics Management 37 (2): 164–179.
Alderton, P.M. (1995) Sea Transportation – Operation and Economics. Surrey, UK: Thomas Reed Publications.
Barret, D. (2005) The Offshore Supply Boat Sector, Sector Note, New York, USA: Fortis Bank.
Benito, G.R.G., Berger, E., de la Forest, M. and Shum, J. (2003) A cluster analysis of the maritime sector in Norway. International Journal of Transport Management 1 (4): 203–215.
Bourbon Offshore Norway. (2008) Homepage Bourbon Offshore Norway, http://www.bourbon-offshore.no, accessed 18 February 2008.
Christiansen, M., Fagerholt, K. and Ronen, D. (2004) Ship routing and scheduling: Status and perspectives. Transportation Science 38 (1): 1–18.
Christopher, M.G. (2000) The agile supply chain: Competing in volatile markets. Industrial Marketing Management 29 (1): 37–44.
ConocoPhillips. (2008a) Homepage ConocoPhillips in Norway, http://www.conocophillips.no/read.aspx?db=INTERNET/MAIN.NSF, accessed 27 February 2008.
ConocoPhillips. (2008b) Homepage ConocoPhillips in Norway: Optimizing Offshore Crane Lifts, http://www.conocophillips.no/read.aspx?db=INTERNET/MAIN.NSF&uid=BA4B3AE33CD27871C12573EF003F0DAB&muid=0324106756E717F5C1256D0400758515, accessed 27 February 2008.
DNV. (2008) Homepage DNV UK, http://www.dnv.co.uk, accessed 10 February 2008.
Eidesvik Shipping. (2008) Homepage Eidesvik Shipping, http://www.eidesvik.no/index.htm, accessed 10 February 2008.
Fagerholt, K. and Lindstad, H. (2000) Optimal policies for maintaining a supply service in the Norwegian sea. Omega 28 (3): 269–275.
Gibson, V. (2007) The History of the Supply Ship. Aberdeen, UK: La Madrila Press.
Gribkovskaia, I., Laporte, G. and Shlopak, A. (2007) A tabu search heuristic for a routing problem arising in the servicing offshore oil and gas platforms. Journal of the Operational Research Society, doi: 10.1057/palgrave.jors.2602469.
Hyne, N.J. (2001) Nontechnical Guide to Petroleum Geology, Exploration, Drilling and Production, 2nd edn. Oklahoma, USA: Penn Well Corp.
IOCENTER (Centre for Integrated Operations in the Petroleum Industry). (2008) Homepage IOCENTER, http://www.ntnu.no/iocenter, accessed 15 February 2008.
Lamming, R.C. (1993) Beyond Partnership: Strategies for Innovation and Lean Supply. Hemel Hempstead, UK: Prentice-Hall.
Ministry of Petroleum and Energy. (2004) Om petroleumsvirksomheten, St.meld. nr. 38 (2003–2004). Oslo, Norway: The Ministry.
Norwegian Petroleum Directorate. (2007) FACTS – The Norwegian Petroleum Sector 2007. Oslo, Norway: Ministry of Petroleum and Energy and the Norwegian Petroleum Directorate.
ODIM ASA. (2008) ODIM ABS™ – Automatic Bulk Hose System, http://www.odim.com/Files/Produktark/ODIM%20ABCS.pdf, accessed 26 January 2008.
Offshore Shipbrokers Limited. (2008) North Sea Market Report – January 2008, http://ifb.offshore-shipbrokers.co.uk/reports/0108.pdf, accessed 26 February 2008.
R.S Platou Offshore A.S. (2008) The Platou Report 2008, http://www.platou.com/loadfileservlet/loadfiledb?id=1205311719484PUBLISHER&key=1205499801725, accessed 20 March 2008.
Ritchie, G. (2007) Practical Introduction to Anchor Handling and Supply Vessel Operations. London, UK: Clarkson Research Services Limited.
Schneekluth, H. and Bertram, V. (1998) Ship Design for Efficiency and Economy, 2nd edn. Oxford, UK: Butterworth and Heinemann; Reed Elsevier.
Solstad Offshore ASA. (2008) Homepage Solstad Offshore: NORMAND SKIPPER, http://www.solstad.no/web/internet.nsf/(docs)/FB120A040FB6CB40C125730000469E04?opendocument&cat1=Fleet&cat2=Platform%20Supply, accessed 28 February 2008.
StatoilHydro ASA. (2008) Homepage StatoilHydro ASA, http://www.statoilhydro.com/en/Pages/default.aspx, accessed 2 February 2008.
Stopford, M. (1997) Maritime Economics, 2nd edn. London and New York: Routledge Taylor & Francis Group.
SWIRE. (2008) Homepage SWIRE, http://www.swire.no, accessed 2 February 2008.
The Norwegian Oil Industry Association (OLF). (2008) Homepage OLF: Guidelines for the Safe Management of Offshore Supply and Anchor Handling Operations (NWEA), http://www.olf.no/hms/dokumenter/nwea_common_guidelines/?30111, accessed 8 January 2008.
Toth, P. and Vigo, D. (2002) The Vehicle Routing Problem. Philadelphia, PA: Siam.
Ulstein Group. (2008) Homepage Ulstein Group: PX10, http://www.ulsteingroup.com/kunder/ulstein/cms66.nsf/pages/shipdesign.htm?open&qnfl=flash#shipdesign/p-series/ulsteinpx105/product/ulsteinpx105.itm, accessed 9 January 2008.
Vik-Sandvik. (2008) Viking Avant, http://www.vik-sandvik.com/files/VikSandvik_pdf/VikingAvant.pdf, accessed 20 February 2008.
Acknowledgements
The authors acknowledge the contributions from StatoilHydro employees companywide, who have indirectly contributed significantly to this article by supporting the many master's projects at Molde University College over the past 5 years. They also thank Ulstein Design, Solstad Offshore, R.S. Platou Offshore, and in particular the personnel at StatoilHydro's supply base in Kristiansund for valuable contributions.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Aas, B., Halskau Sr, Ø. & Wallace, S. The role of supply vessels in offshore logistics. Marit Econ Logist 11, 302–325 (2009). https://doi.org/10.1057/mel.2009.7
Published:
Issue Date:
DOI: https://doi.org/10.1057/mel.2009.7