DNV GL and South Korean Yards' Standardization Efforts Deliver First Results

The first phase of a joint industry project (JIP) to promote a global standard for engineering and construction of offshore oil and gas installations has delivered four recommended practices (RPs).  The outcome of the JIP, led by DNV GL, will be reduced complexity, less rework and delays and greater predictability.  This will help reduce cost and increase quality further, enabling more projects to move forward.

Phase 1 of the JIP has comprised DNV GL, Hyundai Heavy Industries (HHI), Daewoo Shipbuilding and Marine Engineering Company (DSME), Samsung Heavy Industries (SHI), the Korea Offshore and Shipbuilding Association and the Korea Marine Equipment Research Institute.

The RPs provide guidance for meeting requirements in multiple recognized standards applied globally. The RPs also provide guidance and propose new standards in areas where no standards exist. They aim to reduce variations and unique requirements for every project and thereby to reduce the general cost level and delays in offshore oil & gas projects. The RPs are:

• DNVGL-RP-E401 Recommendation for selecting standards for piping components

• DNVGL-RP-E402 Recommendation for selecting standards for electrical and instrumentation components

• DNVGL-RP-B201 Recommendation for selecting standards for structural steel materials

• DNVGL-RP-E403 Recommendation for selecting standards for steel bulk items

“The RPs are the first in a series to reduce cost and increase predictability without compromising quality and safety in international offshore development projects.  DNV GL is working closely with oil companies, engineering houses and fabricators to develop the submitted RPs further for global application,” says Hans Petter Ellingsen, Group leader for offshore risk advisory, Korea, DNV GL - Oil & Gas.

"We are delighted to further develop the strong relationship and collaboration we have with Korean shipyards.  Together we are addressing the challenge of a high cost level by using international standards more widely in offshore oil and gas projects.  When we have common challenges, we also have common opportunities. Standardization has potential to significantly reduce cost levels and enables the industry to move forward,” says Remi Eriksen, Group President and CEO of DNV GL.

“South Korean shipyards are market leaders for construction of floating and fixed offshore oil and gas installations and HHI has been on the forefront to drive initiatives to reduce the general cost level for the oil and gas industry. A major part of these efforts is to drive efficiencies through greater standardization. Standardization will provide an opportunity to enhance efficiency and competitiveness of whole value chains in the oil and gas industry and induce environmental improvement by minimizing the surplus resources. These RPs are a very positive and radical step forward which will help to reduce inefficiencies in design and construction as well as to increase predictability and quality even further," says Kil Seon Choi, Chairman & CEO of HHI.

The second phase of the JIP is already underway and will deliver extended recommended practices for equipment packages, documentation requirements, and procedures.