Although the focus of Seagems, one of the main operators of flexible pipeline support vessels (PLSVs) in Brazil, is on long-term contracts with the federal oil company Petrobras, it has begun to look at opportunities in the spot market with private oil companies and abroad.
Another segment targeted by Seagem, formerly Sapura, is offshore dismantling.
BNamericas talks to CEO Rogério Salbego about new opportunities, the local market and the need for a skilled workforce.
BNamericas: What are the business prospects in Brazil?
salt beg: We have a good portfolio of agreed contracts that will provide security for our operations over the coming years. But we are never satisfied with this and look for other opportunities.
We are closely monitoring the business potential of the Equatorial Margin, for example in Brazil, Guiana and Suriname. We are also counting on the presence of our shareholders in the international market to exploit other opportunities for our company.
Our company recently underwent a rebranding and is now called Seagems. This has brought about two major improvements. The first is that we stand out with a unique identity, preventing the confusion that has been quite common in recent years with our shareholder Sapura Energy. The second improvement is that we have created two operational arms as Seagems: Seagems Offshore and Seagems Solutions.
This repositioning, coupled with the division of the field, creates the possibility for better interaction in the market, as it defines clear areas of operation. On the one hand, based on expertise in subsea engineering, administrative management and operations support, our office intelligence operation; and, on the other hand, practical solutions in underwater engineering, in offshore requirements, also operated with great skill and intelligence by the professionals on our ships.
BNamericas: Do you foresee an increase in the number of contracts for goods and services?
salt beg: In Brazil, there are a number of projects from independent operators that knock on our door from time to time and, due to the nature of our fleet’s long-term contracts, we are unable to fulfill them.
Aware of this question, we began to study an asset light model. The proposal is to use vessels from other ship owners that may be available, combined with our team and technical capacity to carry out projects in the spot market. This also applies to opportunities outside of Brazil, which, as previously mentioned, come from supporting the operations of our shareholders.
BNamericas: How is the demand for PLSV?
salt beg: We have long-term contracts agreed with Petrobras for our entire fleet, which ensures stability for years to come. But, as I said, we are also interested in expanding the volume of business and even our fleet one day.
This expansion is limited by the financing options and lines of credit currently available, as they are geared more towards decommissioning, decarbonisation and renewables, and not so much towards [oil and gas] research and production. We are optimistic that these opportunities will arise again as the industry becomes stronger. Our market is very cyclical and there will be opportunities for this.
BNamericas: Are there any obstacles in the segment?
salt beg: We have a pent-up demand for short-term contracts. We often receive requests, but as our entire fleet is committed to long-term contracts, we end up not being able to answer the question. I believe another obstacle is the lack of skilled labor, which is still a reality in our segment.
In 2014, since we were an entry in the Brazilian market, we understood from the beginning that we would have to train professionals, as finding them willingly in the market would be unsustainable. So we set up our own training center, initially to train ROVs [remotely operated underwater robots] pilots and launch operators.
Approximately 70% of our professionals in these fields had little or no experience with PLSVs, many without ever having worked on any type of offshore unit. This says a lot about the obstacles in our market and for Seagems because it translates, in its DNA, into a philosophy that starts with the training of young professionals and extends to the sense of belonging, which is essential when we reinforce safety and performance. campaigns, for example.
BNamericas: Do all your PLSVs work for Petrobras?
salt beg: Onyx has been contracted by Enauta for a subsea interconnection project in the Atlanta field. But it is certain that the entire fleet will soon be back working on long-term contracts with Petrobras. All contracts have been signed.
Our PLSVs have been designed to meet the specific needs of the offshore environment of Petrobras projects, long before the company was conceived. It’s only natural that we have this strong bond. However, we have worked for several other operators, always looking to expand our client portfolio and challenge ourselves to new challenges.
BNamericas: In addition to flexible lines, have vessels been used to install other critical subsea equipment, such as wet Christmas trees (WCTs), which connect the production system to the well, and subsea manifolds?
salt beg: Yes, but these are activities on a relatively low scale. These operations today are not important in terms of turnover, but they are very important to demonstrate the agility and operational capacity of our ships.
Some examples are the installation of six WCTs for [Italy’s] Eni in Mozambique, 11 collectors for Petrobras, four giant MCVs [vertical connection modules] also for Petrobras, five rigid spools for Saipem and most recently the replacement of two thrusters on the Laguna Star, a Constellation drillship.
BNamericas: What are the future trends?
salt beg: In addition to studying the easy asset market, we will observe opportunities for growth and development.
In this sense, we are closely watching the dismantling projects of Petrobras, given the volume of business that can be generated and the complementarity with the operational characteristics of our vessels.
BNamericas: Are there any important tenders in progress or planned in the coming months?
salt beg: We expect good opportunities in the decommissioning segment and do not rule out new tenders for PLSVs or even other specialized vessels.
BNamericas: Are daily rates for PLSVs under pressure?
salt beg: Daily rates were under pressure in late 2021 when we signed contracts for Diamante and Topázio PLSV at absurdly low rates. However, in the last tender process, we were successful in restoring the level of daily rates to values that we believe are correct for our activities.
There is still room for improvement, given the high degree of specialization of our activity and the limited supply of ships on the market.
BNamericas: What are the main technological challenges ahead?
salt beg: Our technological challenges are focused on the operational security of our activities. In this sense, we are investing heavily in artificial intelligence to bring automation and remote operation solutions to our ships, further reducing human intervention in hazardous activities.
It is important to clarify that the goal is not to reduce the number of employees or replace men with machines, but to ensure that our employees find a healthy and safe environment.
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