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It has been predicted by the biggest energy traders that, “The world could run out of oil storage capacity within months!”¹ caused by demand being cut by the coronavirus and the Saudi-Russia price war .

Giovanni Serio, head of analysis at Vitol, the world’s largest independent oil trader, said that soon traders would have to start storing oil on tankers at sea. “The combination of weakening demand and excess supply is hardly going to be accommodated by onshore storage,” Mr Serio said. “At a certain point . . . we will need to fill all the boats.”¹

Even before the article in the Financial Times, demand for VLCCs had soared and the spot charter rate increased by 600%².  Maximising floating storage capacity NOW is critical.

Older tankers will find themselves with a new lease of life but what maintenance do these vessels need and how quickly does it need to be completed? Steel reinstatement with steel composite, SPS, is up to three times faster than with traditional crop and renewal and allows in-situ class approved permanent steel repair with no hot work.

The use of SPS for ‘side impact protection’ on FSOs and FPSOs, a tried and tested SPS application, facilitates the use of void or water ballast tanks for oil storage in the knowledge that the vessel is protected against supply vessel collision and the need for external sponsons/segregated tanks mitigated. SPS Technology has completed 13 such projects for satisfied clients including MODEC, Perenco, Petrobras and SBM.

At SPS Technology we have the full team and international network of licensees ready to help get your asset ‘storage’ ready for the demanding circumstances that we are facing.

SPS No Hot Work repair and strengthening suitable for all areas on tankers and FPSOs including:

• Bottom and side shell, bulkheads and decks, longitudinals and transverse frames and any other structural elements of superstructures, heli-decks, tanks etc.

SPS is:

• The original No Hot Work permanent class approved structural steel renewal solution since 2003

• SPS permanently reinstates offshore assets to beyond original capacity – accepted by major classification societies and published in Class Rules and Guides

• Fast, safe and predictable repair schedule

• Most cost competitive No Hot Work composite repair solution on the market

• Contributes to global strength – no maximum repair size – largest No Hot Work repair approved by ABS 841m² on an FSO in 2019

To discuss your vessel’s requirements, call:

Asia, Jonny Lim on + 65 97381555

Rest of World, Ian Nash + 44 7912 994256


1 Seatrade Maritime News, 16 March 2020, Poten & Partners Far East route

2 Financial Times 28 March 2020

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