Vessel life cycle: all concerned!

The title of this newsletter which we've been compiling for you for over eight years, is “PartnerSHIP”. This is a highly appropriate name at a time when BOURBON is positioning itself, more than ever, as the reference partner for the main players in offshore energy. 

While the idea of partnership is often overused, we see it as symbolic of the relationship we want to maintain with our stakeholders, clients, suppliers and other partners in our maritime ecosystem. Indeed, we share the same challenges, sush as managing the costs of our joint projects, extending the life of our offshore support vessels, and the efforts we are making to decarbonize our activities, wich are essential to ensure the sustainability of our industry and reduce our environmental impact. 

Faced with this reality, amplified by the current geopolitical uncertainty, the response can only be collective, based on the need for cooperation and partnership. As always, we are ready to meet these challenges, building relationships with our clients based on dialogue, mutual trust and a fair sharing of efforts.

All maritime operators in the oil & gas sector are faced with the issue of extending the life cycle of support vessels, and the maintenance strategy to be implemented to guarantee the operational performance of these vessels. Rodolphe Bouchet, CEO of Bourbon Marine & Logistics, explains the BOURBON's choices for managing the risk of obsolescence. 
 

PartnerSHIP: Today, an aging world fleet, insufficiently mature new technologies, the obsolescence of certain equipment, etc. make the maintenance of offshore support vessels a major issue. What's the situation at BOURBON? 

Rodolphe Bouchet: Like all players in the oil & gas marine services sector, we're concerned with the maintenance of our fleet, which, although always modern and high-performance, requires rigorous upkeep. We tend to forget it, but we operate very complex vessels, with a wide range of equipment: cranes, dynamic positioning, diesel-electric propulsion, etc. Maintenance is therefore a major issue, and the basis of the operational excellence we aim to deliver to our clients. However, the 12-year average age of the world's fleet of offshore support vessels is increasing maintenance costs. This increase of costs is not yet reflected in daily rates, and this is our challenge. Indeed, while daily rates have returned to pre-2015 levels, maintenance costs have probably doubled due to inflation and the aging of the fleet. Our margins are therefore no longer at the same level and it's important that the market regains the right balance... 
 

PS: In terms of maintenance, what are BOURBON's options for dealing with the increasing average age of its vessels? 

R.B.: More than just options, in-depth reflection on the subject has led to a genuine program being implemented within the Group, based on both retrofitting and preventive and predictive maintenance. We manage equipment obsolescence at optimal cost through upgrades decided and planned on a case-by-case basis, at each PMP¹, on the recommendation of Bourbon Tech Solutions, our entity in charge of obsolescence risk analysis. 
 

PS: Let's look at retrofitting for a moment. Are operators like BOURBON really ready to carry out this type of work? 

R.B.: It depends on what you mean by retrofitting. If you're talking about replacing an entire ship's propulsion and electronic equipment and using totally new technology, then the answer is no. Hydrogen technology, for example, isn't ready for industrialized use. On the other hand, if by retrofitting we mean the replacement of pieces of equipment by others that are completely optimized or the improvement of maintenance procedures via data and preventive or predictive maintenance, then the answer is a resounding yes. We've been making progress in this area for several years, as well as in plug & play for certain equipment. 

PS: In what way? 

R.B.: As far as plug & play is concerned, this involves the standard replacement of old equipment with more reliable equipment, new or reconditioned. A number of operations are then performed to refurbish the replaced equipment and make it available to our fleet. For example, we've just carried out a complete replacement, at quayside, of the diesel engine on the generator of our Bourbon Liberty 200 AHTS vessel. The clear benefit for the client is that we can confirm the vessel's downtime and guarantee the date of its return to operation. For the moment, this technique only concerns diesel engines but it may soon be extended to other equipment, such as box coolers². 

Three years ago, we launched a predictive maintenance program, in partnership with Predict, to reduce damage by putting ship health checks in place. The redundancy of certain pieces of equipment and their maintenance in operational conditions are both essential to having a qualified vessel to meet our clients' needs. We've defined performance indicators and devised fault trees, so that the final tool allows us to analyze performance, detect deviations as early as possible and make the best decisions before an incident occurs. Data analysis enables our seafarers and shore teams to work along two lines: on-board predictive maintenance, to provide the crew with a real-time status of the ship's vital organs, and global predictive fleet maintenance, based on the statistics of a set of sister-ships. This solution is based on mass data collection, which implies its deployment on representative vessels across our fleet. 
 

PS: Are these predictive maintenance tools already up and running? 

R.B.: The on-board solution is already operational on our entire connected fleet, while the global solution is in the process of being made reliable. 
 

PS: How do you discuss this topic with your clients? 

R.B.: The diagnosis seems to me to be shared by all the players in our market - shipping companies, clients and suppliers. Everything we do is aimed at enabling our clients to carry out their business in the best possible conditions. This is our commitment. But we all know that we're in a transitional phase. I tend to believe that sharing the risks will enable us to manage this phase better. The investments needed to extend the lifespan of our ships to 25-30 years - almost double the average age of today's fleet - and replace them with new units with a controlled carbon footprint, will be the fruit of jointly constructed solutions. It's up to our entire maritime ecosystem to tackle this issue head-on, to achieve shared benefits... 
 

¹ PMP: Planned Maintenance Period 

² Boxcooler: engine cooling equipment.

As CSR (Corporate Social Responsibility) takes its full place at BOURBON, the Group wishes to make Diversity, Equity and Inclusion (DE&I) an essential condition for the expression of everyone's potential and for collective performance. To this end, the Group is committed to promoting and advancing these principles on a daily basis, via a recently published Charter that formalizes its major guidelines in this area. Sophie Russo, Group Human Resources Director, explains:
 

 PartnerSHIP: How did DE&I take hold within BOURBON? 

Sophie Russo: In a group such as ours, with nearly 85 nationalities, but also in a business sector in which men are historically over-represented, diversity is an issue we can't ignore. It's in our DNA. Today, the low representation of women in our industry is obvious, for many reasons, but all shipowners have become aware of the anomaly of this situation and are taking action to attract female employees. It was against this backdrop that we set up our Diversity, Equity & Inclusion Committee, in 2023. 
 

PS: What are the Committee's aims? 

S.R.: Firstly, to convey our values – so we can better embody them – but also, above all, to address issues such as parity, multiculturalism, sexism, harassment, disability, etc., through concrete actions. The overall goal, which covers our entire approach, is to offer employees a workplace where they feel welcomed, respected and empowered, whatever their identity, origin, characteristics or life experience. Diversity of profiles is the company's strength. It is a competitive advantage, certainly, but our ability to mix our differences and challenge ourselves is also a powerful lever for creativity, performance, responsibility and attractiveness. Our clear goal is to effectively and sustainably establish a genuine DE&I culture among our 6,000 employees, both onshore and offshore. 

PS: This Committee was only the first stage of the DE&I “rocket”, since BOURBON just published its Charter, in September. Why this charter and what is its role? 

S.R.: When making a commitment to address these issues, clarity and rigor are essential. We felt that a charter was essential for formalizing our vision of these issues and making them easier to understand. We therefore identified a first fundamental principle, “Respect & the Fight against Discrimination”, to guarantee trust and protect quality of life in the workplace. With this in mind, we have clarified the three main principles guiding our action – non-discrimination, diversity and, finally, inclusion & equity – and have very clearly set out our commitments. We must now work daily to reinforce this DE&I culture, as we always have for the HSE culture, for example. This is why we communicate regularly about our actions, why we organize an annual People's Week, during which all the Group's organizations take initiatives to raise awareness among employees, and why the ambassadors who make up the DE&I Committee work to achieve the ambitious targets that have been set. 
 

PS: A final word? 

S.R.: BOURBON is multiplying its initiatives and external commitments, thus demonstrating its clear purpose. The Group has signed charters with several organizations and is involved in inter-company networks that exchange best practices in the fields of Diversity and Equity & Inclusion. We’re signatories to the UN Global Compact, the “#StOpE” initiative (Stop Everyday Sexism in the Workplace), the “Bye Bye Sexisme” charter of BPW (Business Professional Women) NGO and are fully convinced that we are on the right track. The commitment of our employees at our last People's Week is a very encouraging sign!

To better meet customer demand, BOURBON has been developing an integrated logistics business since 2018, via its Bourbon Logistics entity. Main objective: to expand its service offering around its vessels by proposing integrated services at the logistics base. The theater of operations is Namibia, where a new contract has just been signed with an oil major. 
 

This new 6-month integrated logistics contract with a major player in our industry is designed to support an exploration campaign, in particular the drilling of a first well in the waters off southern Namibia. For BOURBON, this success is a continuation of the fruitful collaborations already established with other major operators in the sector, and represents a significant step forward in the client's strategy, by integrating a complete, tailor-made logistics solution - a first for them in this region. 
 

A scope covering the entire supply chain 

The scope of the contract covers the entire project supply chain, starting with international transport and customs clearance of the equipment required for the drilling campaign, from Houston, Singapore and Antwerp to Walvis Bay, Namibia. BOURBON will also provide logistics services such as base management and associated services (handling and lifting, equipment management, storage, warehousing, waste management, tank cleaning, etc.) as well as marine services. No fewer than 3 PSV supply vessels will be made available to the client, the Bourbon Diamond, Ruby and Topaz. 

“Bourbon Logistics is mobilized to bring exemplary management of the client's supply chain, with strict adherence to deadlines and constant attention to the highest safety standards » explains Nicolas Château, Bourbon Logistics Managing Director. This new contract confirms Bourbon Logistics’ expertise and recognition by major O&G operators to bring increasingly comprehensive services to its clients, in their most ambitious projects”. 

BOURBON will be in charge of the entire logistics operations’ planning and conduct. The operations will be supported by its data management system, “Bourbon Logistics Suite” software, which enables all logistics operations to be planned, executed and controlled from end to end. The logistics base is located in Walvis Bay and will employ almost 50 shore-based staff, 96% of whom are Namibians, who will benefit from specialized training, particularly in materials handling.

In 2023, BOURBON dug a little deeper into the furrow of its CSR policy, with the aim of consolidating the commitment of its teams while extending its ramifications. On the occasion of the publication of its mid-year Sustainable Development report, BOURBON reaffirms its commitment to reducing its impact, promoting human rights and increasing its resilience, to make its business more “sustainable”. Christelle Loisel, CSR Director, explains the levers for action. 
 

Year after year, BOURBON digs the furrow of its CSR policy by taking care to involve its employees in the appropriation of these topics. The clearly stated aim is to unleash energies and initiatives... “We have cultivated a top-down and bottom-up approach, based on the principle that they feed off each other,” explains Christelle Loisel. “Rooting our CSR policy at the highest managerial level of the Group, empowering our teams in these matters and encouraging our employees to propose initiatives that correspond to one or other of our environmental and social concerns has guided our action throughout 2024.” 

The many examples of this approach include the creation of the Sustainable Development Committee, at the highest level of Group governance, the organization of quarterly “Environment” and “Compliance” forums, days dedicated to the company's four commitments (Safety Day, People's Week, Environment Week, etc.), the start of work by the Diversity, Equity & Inclusion (DE&I) Committee, set up in 2023, and so on. The initiatives of the Group's various organizations also demonstrate the extent of our teams' commitment! 

Five main levers for action 

Our CSR levers for action are in line with the Group's vision, values and commitments and are based on committed governance. They reflect BOURBON's support for the UN's Sustainable Development Goals (SDGs), to which the Group contributes, within its sphere of influence: “By promoting both growth and progress, for the benefit of all, the SDGs are ultimately factors that strengthen our business! They are not enforceable and, on the contrary, testify to a genuine complementarity between economic growth and sustainable development... We fully adhere to them, since they represent a solid foundation for our commitment.” 

“Committing the Group to continuous progress from an environmental, ethical and social point of view, via a CSR policy tied as closely as possible to our teams around the world, has the natural consequence of strengthening our societal and territorial anchoring at a local level. Nurturing vocations, attracting talent, in France and internationally, and being a player in dynamic maritime communities around the world are all essential to BOURBON’s major challenges – to reduce its carbon footprint, modernize its fleet and strategically position itself in the development of offshore wind energy. We remain committed to ensuring that BOURBON maintains and strengthens its role as an ambassador of a strong maritime culture, integrating the Group's challenges in terms of reducing its environmental impact, local anchoring and social commitment,” Christelle Loisel concludes.

The BMO Academy is the in-house training organization of Bourbon Mobility (the BOURBON entity dedicated to personnel transport), which guarantees clients a single, uniform standard, based on the ISM Code and the OSM – the BOURBON standard – and is in line with the company's Operational Excellence pillar. Stéphane Mérabet, Training Coordinator, explains: 
 

PartnerSHIP: How would you define the Academy and what is its strategy? 

Stéphane Mérabet: In its personnel-transport business, Bourbon Mobility is committed to continuous improvement of operational standards and performance, in the service of customers. This internal training plan, currently being updated, meets two challenges: enabling newcomers to integrate safely and efficiently into our highly demanding and competitive offshore environment and providing existing crews with periods of review and refreshing. Such regular training allows us to maintain the high level of competence of our crews over the long term. This is the key challenge for a company like ours. Maintaining and developing the skills of our seafarers on Surfers clearly illustrates Bourbon Mobility's strategy of guaranteeing clients the level of expertise required in the offshore industry. I would add that this in-house Academy is a major differentiating factor for BMO, compared with our competitors in the industry, legitimizing our ambition to remain the benchmark in the passenger-transfer market, by unifying the career paths of our specialized crews – pilots, captains, engineers and ABs. 
 

PS: What are the Academy's objectives? 

S.M.: First and foremost, to guarantee standardized training, based on our standards, wherever we operate and whatever the affiliate. That's the starting point! But the benefits of this program are many and varied. Workplace safety issues and personnel-transfer operations are presented and shared from the outset, offshore personnel training becomes more efficient, the time between recruitment and operational autonomy is reduced and we can ensure skills development and monitoring throughout crews' careers. As a direct consequence, we’re aiming for a significant reduction in incidents and mechanical breakdowns and a consolidation of our know-how. Finally, from a commercial point of view, this initiative enables us to secure our commercial contracts and offer proven solutions in new markets, such as personnel transfer in the wind-farm sector. 

PS: What are BMO's training structures today? 

S.M.: We have four training facilities – our BOURBON Training Centers (BTC), located in Gabon, Nigeria, Angola and Congo, which are equipped for theoretical instruction and practical training in technical workshops. We're also innovating in terms of teaching, with the COLREG training – an online module available every two years for BMO's OOWs (Officers On Watch) – and with a new virtual-reality Surfer navigation simulator that we’re working on, which offers an incredible immersive experience. This is scheduled for deployment in late 2024 and early 2025.