Routing of supply vessels to petroleum installations

Abstract

PurposeIn the Norwegian oil and gas industry the upstream logistics includes providing the offshore installations with needed supplies and return flow of used materials and equipment. This paper considers a real‐life routing problem for supply vessels serving offshore installations at Haltenbanken off the northwest coast of Norway from its onshore supply base. The purpose of the paper is to explore how the offshore installation's limited storage capacity affects the routing of the supply vessels aiming towards creating efficient routes.Design/methodology/approachA simplified version of the real‐life routing problem for one supply vessel is formulated as a mixed integer linear programming model that contains constraints reflecting the storage requirements problem. These constraints ensure that there is enough capacity at the platform decks and that it is possible to perform both pickup and delivery services.FindingsThe model has been tested on real‐life‐sized instances based on data provided by the Norwegian oil company Statoil ASA. The tests show that in order to obtain optimal solutions to the pickup and delivery problem with limited free storage capacities at installations, one has to include in the formulation the new sets of constraints, the storage feasibility and the service feasibility requirements. In addition, two visits to some platforms are necessary to obtain optimality.Research limitations/implicationsThe main limitation is the present inability to solve large cases.Originality/valueThe contribution of this paper is to provide a better insight into a real‐life routing problem which has a unique feature arising from the limited deck capacity at the offshore installations that complicates the performance of service. This feature has neither been discussed nor modeled in the vehicle routing literature before, hence the formulation of the problem is original and reveals some interesting results.