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Graphic 1 crew capacity 210 minimal local crew travel, helicopter only 0 expat crew (toolpushers, DP operator, subsea engineer, chief electricians, etc.) 45 2 wks on/2 off, so it’s Luanda to Sidney/Aberdeen/ Houston etc. every 2 wks 90 round-trip ? ights (45 crew x 13 round-trip ? ights x 2 (rotating crews)) 1,170

Photo: Mackerel Press by 30 percent. Consider half of that $8 sas or passports, even for multinational billion, and the percentages suggest vast crews. Our Duty of Care travel standard potential savings. In costs-conscious is in-line with the industry standard for

Norway — with its rising numbers of lo- keeping crews safe (sometimes by extri- cally based worldwide energy industry cating them from harm’s way or divert- suppliers — travel management is on the ing them out of danger). rise, and ATPI’s new Oslo of? ce bears So, travel might be the easiest part of testimony to the new awareness of the SG&A costs to address, and the indus- savings available in travel management. try needs to cut costs without affecting

Customers include drilling contractors, safety, stopping innovation or curbing offshore vessels owners, midstream production. At $10 million per hypo- players and a robust supply chain. thetical drillship, there’s about $4 billion

For oil independents and suppliers, in travel costs to target for drilling alone, travel can be 30 percent of administra- and drill crews aren’t the only offshore tive costs, or the “A” in SG&A, and for travelers. upstream businesses, that can mean up to Offshore shipping, for one, has similar $2 per produced barrel. This same cat- numbers for some vessels, and they’re egory of costs can incur a six-percent hit some of our best clients. At stake for all of total expenses, including all expenses suppliers, potentially, are day-rate losses for key operations (see Table 2). For me- due to absent specialists; cancelled buy dium-sized suppliers, travel can reach 16 paid for hotel stays, plus taxis, accidents, percent of SG&A costs. kidnappings, etc., which our Duty of

Care and S5 partnerships address.

Savings & Safety As for operators, well … If you save

So what does ATPI do to cut indus- on travel, you might be able to drill some try travel costs? Remember the African more wells or tackle some more projects.

Drillship’s “incidental” costs? We have a new partnership with worldwide port agent S5 aimed at eliminating many of those hotel stays and incidentals for trav- elling expats, be they managers, special-

The Author ists or crew. If S5 sees that a ship or rig isn’t ready for crew (late, engine trouble,

Dag Kristian Amland is Divisional Man- aging Director of ATP Instone, part of an testing kit, diverted to another port, etc.),

ATPI Group that earned over $1.78 bil- then ATPI customers — using a travel- lion in travel-management business in management technology interface called 2014. About 40 percent of ATPI’s busi-

ATPI CrewHub — know automatically ness is in oil and gas. when not to book travel. Through Cre- wHub, they also know of expiring Vi- www.marinelink.com 21

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