A SPLASH OF BOURBON IN THE GULF
Larry Rigdon sure knows how to make the most out of “retirement.” The former Tidewater executive vice president created a stir in late November when his newly formed company, Rigdon Marine LLC, New Orleans, La., announced it would use $125 million in financing from France’s Groupe Bourbon to build ten deepwater DP2 Platform Supply Vessels (PSVs) at Bender Shipbuilding & Repair Co., Inc., Mobile, Ala.
So why would Rigdon, a 28-year veteran of the offshore energy business, want to go up against the likes of Tidewater, Edison Chouest, and Seabulk International? “
I was bored and I wasn’t really ready to retire,” says Rigdon (laughing). “Really, I’ve always had a long term desire to own my business. So when I did not get the top job [at Tidewater], I saw it as an opportunity.”
Continues Rigdon, “One question I had to ask was, ‘How do I differentiate the company from existing players. I had to use the technological advantage. I saw a market niche that I could fill, if I was willing to take a technology risk. That’s the huge advantage of being a small company. We think we can be more flexible than a large company.” Adds Rigdon, “If you had to look at someone whose done this really well, it’s Edison Chouest. They took a technology risk. And it’s paid off.”
The PSVs were designed in conjunction with naval architectural and marine engineering firm Guido Perla & Associates, Inc., Seattle.
One of the technological edges incorporated in the 210 ft PSVs ordered by Rigdon Marine is their diesel-electric propulsion plants. “That’s unusual for a vessel this size,” says Rigdon. “But Otto Candies showed me the way with that. Diesel-electric propulsion will improve the environmental and economic performance of these vessels. Adds Rigdon, “Ordinarily, offshore service vessels of this size go about 10 knots at full load; with this design we can go 13 knots; a 30% gain in efficiency.”
The vessels’ electric motors will drive the 360 degree azimuthing thrusters. One rumor had it that the PSVs would be fitted with azipods.
“Azipods are excellent technology, but too expensive—at least right now—for vessels this size. They’re are better suited for use in 280 footers,” says Rigdon.
Each PSV will be equipped with a DP2 level dynamic positioning capability for superior station keeping. DP2 is the latest generation of dynamic positioning technology, the most advanced equipment available, and its operational capability will be certified by the American Bureau of Shipping. All the vessels will be U.S. flag.
The Coast Guard will allow the use of a dynamic positioning (DP) system on an OSV for the purpose of “mooring” the vessel during oil and hazardous material (HAZMAT) transfers to and from an offshore facility or rig, in water depths that exceed 300 feet where compliance with the mooring requirements of 33 CFR 156.120(a) became difficult and/or expensive.
In shallower waters vessels must fully comply with 33 CFR 156.120(a) using a suitable anchoring/mooring system.
Rigdon plans to have Rigdon Marine certified under the strict, high standards of ISO 9000 and ISO 14000, substantially exceeding the minimum ISM (International Safety Management Code) standards.
According to Rigdon, Bender has already developed a build strategy and a complete 3D CAD model should be ready for a “complete walkthrough” in April 2003. Once approved, it will take Bender between 9 to 10 months to build the first vessel.
Deliveries are scheduled to begin in the first quarter of 2004, continuing until the third quarter of 2005.
These vessels were designed to satisfy the needs of the growing worldwide deepwater offshore markets, with current focus on West Africa, Brazil and the Gulf of Mexico. They will also serve to rejuvenate the Gulf of Mexico classical service/supply vessel fleet, much of which exceeds 20 years in age.
MUCH ADO ABOUT BOURBON
Rigdon sought and obtained interim financing from France’s Groupe Bourbon for the venture. Groupe Bourbon concentrates in two business sectors: retail distribution and maritime services with a fleet of over 200 vessels operating in harbor towage, dry bulk transport and offshore oilfield services.
The agreement between Rigdon and Groupe Bourbon provides for the operation and employment of the vessels in the U.S. market by Rigdon Marine. The offshore division of Groupe Bourbon will assist Rigdon Marine with the marketing of the vessels internationally.
This development will provide a major step forward for Groupe Bourbon’s strategic growth in the deepwater offshore marine service sector.
When it was announced, the Rigdon Marine-Groupe Bourbon deal raised a hullabaloo among Jones Act proponents. But shipbuilding consultant Tim Colton doesn’t see what all the fuss is about.
On Colton’s website, www.coltoncompany.com, Colton says, “The American Waterways Operators and a few other folks are getting all worked up about the use of foreign sources of lease financing for Jones Act ships. This is allowed under a change in the regulations that was introduced in [the Coast Guard Authorization Act of 1996] and is being used now, for example, by Rigdon Offshore to obtain financing from Groupe Bourbon for the construction of a 10-vessel fleet of PSVs.
“Proponents say that this is a healthy change, introducing much needed new sources of capital into the industry, without any down side, and gives overseas investors an interest in preserving the Jones Act. Opponents say that the revised language was snuck into the law in the middle of the night without any discussion, is contrary to all the principles of the Jones Act and presents a serious threat to the national security.
“I say that money is money and the more of it our industry can lay its hands on, the better (me included of course).” Says Colton, “I suspect that the Jones Act operators who object to this financing mechanism are: (a) jealous and (b) afraid of the competition.”
