CASE STUDY

Diagnostic Prior to Rig Deputation Enabled ~$1.5 mn in Revenue Over 2 months and Saved ~$106,000 Due to Extension of Overhaul by 6000 hrs

Oil and Gas

Engine Condition Monitoring: Health Diagnostics

EMD diesel engines

2 nos. EMD 12V-645-E8 engines were due for a 30K hours overhaul but the rig owner had a budget constraint.
The new drilling contract for this rig was finalized and the commissioning was due in a short time.
Technical team was uncertain about the health of the engines to go with the new contract

Neptunus has been a preferred partner to this customer for engine maintenance across their multiple rigs
Neptunus’ expert advised for pre-overhaul diagnostics using torsional vibration analysis . The objective was to optimize the spare parts and consumables needed as against the standard 30k overhaul costs
Neptunus’ team went onboard & carried out the engine health inspection with our torsional vibration tool.
The report data showed that the condition of the inspected engines was satisfactory for operating, and the overhaul could be extended by at least 2000 hours
This data from our engine condition monitoring system helped the customer confidently get into a new contract without doing an overhaul.
Eventually, the overhauls were safely extended to 36000 running hours.

Customer was able to depute the rig on time, instead of a potential 2 month delay. This enabled revenue of 60 days * $25,000 = $1.5mn, and better cash flow management.
Since MTBO (mean time between overhaul) was extended by 6000 hours (20% extension), life cycle cost was reduced by (⅕)*$160,000 per engine = $32,000 per engine, resulting in savings of $64,000 for two engines.
Cost of capital at 10% of $320,000 for one year = $32,000.
Since MTBO was extended, the Customer saved ~$10,000 on logistics and manpower costs since overhauls did not need to be done in offshore drilling positions.
It allowed the rig and technical teams to focus on the core drilling operations rather than worry about the uncertainty of engine reliability.