The calculation of the ORIGINAL SPARE PARTS (OEM) sold by Vicel takes into account 3 main factors:

1. VICEL only provides ORIGINAL ITEMS (OEM - Original Equipment Manufacturer) imported from the Manufacturer of the Equipment (SEVERN TRENT De NORA and JETVAC) or of the material (GEORG FISCHER), being this duly supported by the marks of the packages and/or the body of the materials and spare parts, and the CERTIFICATES OF ORIGIN that goes together with each delivery, as required.
2. The Manufacturers of equipment (SEVERN TRENT De NORA and JETVAC) provide SPARE PARTS with registered PART NUMBER, which are provided in the DESIGN CERTIFICATES (US Coast Guard or other Certification Agent) recommended to keep MANUFACTURER’S GUARANTIES and Certificates valid. The PERFORMANCE of these elements is followed-up by the Manufacturers along the useful life of equipment and, when any failure is detected in the process, the ORIGINAL DESIGN and /or the sub-supplier is altered, for the benefit of the equipment and final client.
3. The Manufacturer of the material (GEORG FISCHER) produces its products at Production Units abroad and provides THERMOPLASTIC PIPES AND FITTINGS systems, with manufacture characteristics and application features (corrosion, heat and abrasiveness resistant) approved by Petrobras in ET-200, and by several other clients equally reputable, for the specific applications to which they are directed in PVC and CPVC (Schedule-80) material, where they replace alternate materials formerly applied, such as STAINLESS STEEL and FRP, with technical and economical advantages. It must be emphasized that the national industry presently does not have any supplier of this material, which can not be compared to materials manufactured with other raw materials (other schedules: Sch 10, Sch 40 or other plastic alloys).

In order to meet clients’ needs, VICEL anticipates the importation of critical materials, over which severe costs are added, differently from many clients, when registered with REB. The burden of the costs incurred with importation into Brazil is well known, with all kinds of fees and taxes, which are assessed over the CIF amounts of the materials (CIF = EXW cost + Freight, usually by air + insurance) in the form of “cascade”, increasing a lot the final cost of the spare parts. The import FACTOR is comprised of the following ASSESSMENTS over the cost of the products, pursuant to their respective NCM (MERCOSUR Tax Code similar to US Harmonized Code):

• Navy or Airports Funds
• Storage Fees in Ports and Airports
• Import Tax
• IPI (Excise Tax)
• Advanced ICMS (Tax on Distribution of goods and on Communications and Interstate and Inter municipal Transport Services)
• PIS (Social Integration Program)
• COFINS (Social Security Financing Contribution)
• Federal Internal Revenue’s Fees
• Supplementary ICMS (Tax on Distribution of goods and on Communications and Interstate and Inter municipal Transport Services)
• Etc.

This element is worsened with the HIGH EXCHANGE RISK, by the variation of the exchange rate that makes the Replacement Cost of all our products uncertain.

Due to the same criteria of CRITICITY already exposed before, VICEL keeps an inventory of the most critical materials, over which additional costs of INSURANCE, MANAGEMENT and FIXED CAPITAL are assessed, which become an important element in the calculation of the cost, due to the characteristics of Brazil and the region where we operate.

Based on its accumulated experience of over 15 years with installation and maintenance of OMNIPURE™ waste water treatment equipment, Vicel recommends the clients to define the capacity of the effluent treatment system based on the parameter of water consumption estimated in liters per day (LPD).

The OMNIPURE™ units are certified for different capacities measured in LPD. The model 18MX-MP is designed to treat up to 60.000 LPD, which corresponds to the largest capacity for a single skid mounted unit. The parameter “number of crew members” referenced by STDN as manufacturer of the OMNIPURE™ units is based on a water consumption onboard within International average levels, as regulated by IMO. Our experience in Brazilian ships and platforms shows water consumption higher than the international standards, due to the Brazilian population cultural factors, despite the Brazilian government environmental organizations are in continuous campaigns to reduce the waste of water consumption.

In cases of ships and platforms equipped with OMNIPURE™ units which are working at the limit of its capacities (or even undersized) Vicel recommends the following actions:

• Instruct the crew about the STP capacity situation, showing the need to reduce water consumption onboard;
• Provide a more severe maintenance on the sewage system eliminating leakages, and waste of water onboard;
• If the above recommendations are still not enough, in critical cases, by directing sources of grey waters to the sea (never black water).

The OMNIPURE™ units installed below the seawater line of the ship or platform must be equipped with an overboard pump assembly of 1 HP or 3 HP based on the head of the installation project.

In case of customized units, such as the most recent Petrobras projects like P-38, 40, 43, 48, 50, 51, 52, 53, 54 & 56, the Platform’s designers and Petrobras engineers approve the system drawings, which include the curves of the overboard pumps. In these cases STDN meets the specifications of the clients, attempting to present minimum deviations, which is an important criteria for assessing the Platforms Bids.

It is somehow common that after some time of operation an FPSO has its draft higher than the one originally designed, due to new equipments additions, extra containers installed at their super structure, increase of population, or increase of oil amount stored in tanks. These extra charges increase the draft and the counter pressure in the discharge of the OMNIPURE™ system, what could require the replacement of the 1HP overboard pump by a 3HP.

Why was the new resolution developed?

IMO Resolution MEPC.159(55) provides more consistent testing methods for all types of marine sewage treatment units and ensures that commercially available treatment technologies are all held accountable to meet the same effluent standard. Brazil, as an IMO member state has adopted and is enforcing this resolution. It should also be noted that this MEPC.159(55) supersedes the previous effluent standards and guidelines as set forth in MEPC.2(VI).

Who is affected?

In applications where marine sewage treatment equipment is required to meet MARPOL Annex IV, this Resolution presents the revised ‘Guidelines on implementation of effluent standards and performance tests for sewage treatment plants’. The new regulations are applicable only to systems “installed on board a ship on or after 1 January 2010”. The IMO interpretation for “installed on board a ship on or after 1 January 2010” includes:

• For new ships, installations on board ships the keels of which are laid, or which are at a similar stage of construction, on or after 1 January 2010.
• For existing ships, new installations with a contractual delivery date to the ship on or after 1 January 2010 or, in the absence of a contractual delivery date, the actual delivery of the equipment to the ship on or after 1 January 2010.

Customers can therefore purchase and take delivery of marine sewage treatment systems before 1st January 2010 and still be in compliance. Any systems installed in compliance with the above schedule will be grandfathered and will remain acceptable for the life of the system. If possible, customers should seek to purchase marine sewage treatment systems before the effective date of the new regulation, since the cost of systems compliant with the new regulations are higher regardless of the manufacturer.

What sort of type certification is STDN offering?

MEPC.159(55) resolution states that any ‘Certification’ to this resolution shall be made by an administrative third party Notifying Body per MEPC.159(55)5.4.2. In light of this requirement, STDN has elected Bureau Veritas (BV) as the notifying body for this Certification.

What is STDN product compliant with MEPC.159(55)?

The OMNIPURE™ Series 55 units are compliant with the new MEPC.159(55) regulation. The new Series 55 units are specifically manufactured for marine and offshore installations requiring permanent or long-term operation for the treatment of marine sewage. The rugged design of the OMNIPURE Series 55 units is well suited for the rigors of industrial platform installations. Minimal maintenance, small equipment footprint and the light weight packages, make the OMNIPURE Series 55 a long-term solution for wastewater treatment on a variety of offshore and marine installations, including those deeper water, weight-sensitive applications.