THE VULNERABILITY OF GULF OF MEXICO SHIPYARDS

TO COASTAL FLOODINGAS A RESULT OF STORM SURGE

By Capt. Christopher Bowman

Increasing Number of Deepwater Projects

Increasing complexity and size enhances exposure and costs.

Flooding Risk Has Always Been There

The value of the assets has changed, subsequently changing the risk.

Storms Appear More Intense and Unpredictable

The need for more thorough contingency planning to improve risk

identification and risk mitigation.

Who Benefits From Contingency Procedures?

• Underwriters – Reduced Risk Exposure

• Brokers – Representation of Competent Assureds

• Assureds – Minimize Damages to Assets / Project Delays

• Shipyards – Minimize Damages to Assets / Equipment

• Government – Reduce Risk to Infrastructure

• Civilian Population – Reduced Risk to Personal Properties

Three Cases Different Unique Risks in the Gulf of Mexico

• Pascagoula, MS / Mobile, AL

• Ingleside, TX

• Brownsville, TX

Pascagoula/Mobile

Mississippi and Alabama Coastline without Coastal Flooding

Pascagoula

Mobile

Pascagoula/Mobile

Deepwater Commercial Seaport:

• Break-Bulk Cargoes

• Containerized Cargoes

• Petroleum Cargoes

• Heavy-Lift Cargoes

• Terminal Facilities

Pascagoula/Mobile

Potential Risks To:

• Vessel Fabrication / Repair Shipyards

Semi-Submersible Rigs

Large Dry-Docks

Shipyard Facilities

Pascagoula/Mobile

Pascagoula and Mobile with Coastal Flooding Due to a Category 5 Hurricane

Pascagoula

Mobile

Pascagoula

Mobile

Pascagoula/Mobile

Mitigating The Risks:

• Timely and Reliable Weather Forecasting

• Open Communication Between Port Authorities / USCG / Terminals

• Contingency Procedures with Time-line Triggers

• Engineered Mooring Plans

Adequate Mooring Appurtenances

Mooring Bollard / Bitt Capacities

Accurate Water Depths

Overburden

Ingleside

Texas Coastline Surrounding Ingleside without Coastal Flooding

Ingleside

Ingleside

Potential Risks To:

• Major Offshore Oil & Gas Projects

Production Decks / Components

Jacket Structures

Floating Production Units

Ingleside

Major Offshore Projects:

Ingleside

Ingleside with Coastal Flooding Due to a Category 5 Hurricane

InglesideIngleside

Ingleside

Mitigating The Risks:

• Shipyard Project Bridging Document

• Engineered Mooring Plans

Adequate Mooring Appurtenances

Accurate Water Depths

Overburden

Ingleside

Engineered Mooring Plan For Storm Surge / High Winds

Brownsville

Texas Coastline Surrounding Brownsville without Coastal Flooding

Brownsville

Brownsville

Potential Risks To:

• Jack–Up Drilling Rig Fabrication / Repair Shipyards

Jack-Up Drilling Rigs

Brownsville

Brownsville with Coastal Flooding Due to a Category 5 Hurricane

BrownsvilleBrownsville

Brownsville

Mitigating The Risks:

• Location Approvals / Site Assessments for Jack-Up Rigs

Site Specific Soils Analysis

Hull / Leg Wind-Load Calculations

Preload Requirements

Summary and Conclusions

Gulf Coast Shipyards will always be exposed to the threat of severe coastal

flooding arising from any given tropical event.

The risks and exposures to these facilities is always changing, driven by

season and current scopes of work.

Assessing the risks and exposures frequently is essential to insure that

Contingency Plans and Hurricane Preparedness Plans are up to date for the

current scopes of work.

Contingency Plans and Hurricane Preparedness Plans have a significant

financial impact on these facilities as they often require volumes of resources,

advance planning time and adequate time for full implementation.

Shipyards carry the burden to protect their assets, the assets of their Clients,

the financial impacts to insurance markets and to reduce the potential for

interruptions to the global offshore oil and gas industry.

QUESTIONS?