Battery power a condition of new Statoil supply vessel contracts

Skandi Monstad is one of seven vessels that will be retrofitted for battery-hybrid operation

JUNE 28, 2017 — Conversion for battery hybrid operation is required under contracts just awarded to five shipowners by Norway’s Statoil.

The contracts cover provision of seven supply vessels to operate from its supply bases at Mongstad, Dusavik, Florø and Kristiansund and are worth a total of NOK 3.1 billion (about US$367.5 billion0, including options.

All vessels will be equipped with hybrid battery operation, and the possibility of shore power connection.

“We look forward to a long-term cooperation with the chosen shipowners. The contracts will bring predictability to both the shipowners and Statoil, and will allow us to focus on optimizing our operations to continuously improve operation, safety and energy efficiency,” says Philippe F. Mathieu, senior vice president for joint operations support in Statoil. “The bidding process has attracted high attention, and we have received bids for around 50 vessels from many competent and highly qualified shipowners. We require the crew on all vessels to speak one of the Scandinavian languages.”

Four of the contracts have a duration of five years, plus five one-year extension options.

Three of the contracts have a duration of three years, plus three one-year extension options.

The following shipowners and vessels have been awarded five-year contracts, including five one-year extension options:

The following shipowners and vessels have been awarded three-year contracts, including three one-year extension options:

Including its current vessels, Statoil has 16 supply vessels on long-term contract with 10 different ship owners. It says it will still need the spot market after these awards, but the need will vary from day to day.

Statoil says that with an ambition of being a leader in carbon-efficient oil and gas production, it is focusing on reducing emissions from its logistics activities.

“Since 2011 we have reduced CO2 emissions from our vessel portfolio on the Norwegian continental shelf (NCS) by close to 30%, and together with the shipowners we want to further reduce our climate footprint,” says Frida Eklöf Monstad. head of Statoil’s marine unit in the company’s logistics activities. “Vessels that can demonstrate low fuel consumption have therefore been successful in this award. Based on our experience battery operation has a good impact on consumption and emissions, and we are pleased that all vessels awarded long-term contracts with us today will be equipped for battery power and shore power.”

None of the vessels awarded contracts currently have a system for battery-operation or shore power. This equipment will however be installed, and Statoil says that Norway’s NOx fund is a key support player and contributor to the shipowners in their effort of installing batteries.