Page 27 - The ROV Manual - A User Guide for Remotely Operated Vehicles 2nd edition

45 cc auxiliary pump on a 150 hp WCROV provides 20 gpm (75 lpm) at 3000 psi (200 bar), which is the same hydraulic horsepower as 30 gpm (115 lpm) at 2000 psi (140 bar). The typical 150 hp WCROV should be sufficient to cover the highest draw tool initially anticipated for IRM (and most construction) tasks. If the ROV company is a DR company, the company has little choice other than to buy a name-brand system from a major manufacturer. If the ROV company is a PM company, the choice is open as to whether to buy the WCROVs or to manufacture the company’s own proprietary design.
1.2.3 Strategy for service package deployment
There will be two separate strategies with regard to deployment of services for a DR company ver- sus a PM company. Both will have some common requirements, but the PM company will have additional requirements above the DR company in order to field a “one stop shop” concept to its customer base. Further, the customer base for a PM company will be much more sophisticated with a much longer lead time for ordering services.
DR company: As explained above, it is useless to be a full-service DR WCROV company with- out full ownership of the deployment vessel as the boat makes the lion’s share of the revenues/prof- its. For the MSROV and OCROV company (due to the call-out nature of the business), vessel ownership (while certainly an option) would probably be an expensive luxury as opposed to a necessity. At best, the ROV company could purchase vessels and dig into an unserviced (or under- serviced) niche left open by the void between the larger international PSV companies (who offer ROV services as an added option to the vessel platform) and the smaller PSV companies (who only offer vessel-only charters).
PM company: The strategy for a PM company is the same as for a DR company with the addi- tion of a project management function. It would be preferable to keep the DR and PM companies in relatively close geographical proximity to one another so that the engineering-to-deployment process is done with a teamwork approach allowing for maximum face time with minimal travel time.
1.3 ROV economics
1.3.1 Capital expenditure (CAPEX) versus day rate
Investment in ROV equipment can be quite expensive and financially risky. The cost of capital involves daily interest charges as well as financial carrying costs. In addition to the cost of capital, the equipment must be insured, maintained in an operationally ready status (when not in the field earning revenues), housed in a secure location, staffed by qualified and trained personnel, and oper- ated periodically (the “use it or lose it” proposition) to verify full readiness. Further, anything that is put in the water has the chance of breaking free, becoming entangled, and/or becoming unrecov- erable (equating to a full loss scenario). In short, not only does the ROV company require recapture of its cost of capital, it also requires sufficient revenues to counter the carrying costs of maintaining the vehicle during both revenue and nonrevenue days as well as compensation for risk involved
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