Sergey Popravko knows the Russian Arctic in and out. He is at the helm of SCF Unicom, the ship management company of JSC Sovcomflot, the world’s number one Arctic shuttle tanker operator, and the world’s number one ice-class LNG operator.
From his headquarters in Limassol, Cyprus, managing director Sergey Popravko keeps track of Unicom Management Service’s (SCF Unicom) entire fleet of vessels on a large computer screen in his office. Increasingly, new dots representing tankers are seen on the top half of his screen, in the Russian Arctic.
SCF Unicom, one of the exclusive ship managers for the Russian state ship owning company JSC Sovcomflot, is especially renowned for its expertise in the challenges of shipping in the Russian Arctic. From the calm warmth of the Mediterranean it’s hard to fathom the extreme conditions the tankers must weather. But Mr Popravko, who is also Chief Operating Officer of Sovcomflot, knows the Arctic better than most. He has 30 years experience in the industry, working his way up the ladder, with many Arctic voyages under his belt.
Major player
When new opportunities are opening up in the Russian Arctic, with offshore projects such as Sakhalin, Varandey, Shtokman and Yamal, SCF Unicom is stepping up as a major player. Russia is becoming a prime energy supplier to the world, and is pursuing a new strategical approach in delivering Russian energy to the global market – with emphasis on shipping, instead of pipe-lines. The strategies of both Sovcomflot and SCF Unicom are aligned with the country’s strategy.
SCF Unicom became an independent technical LNG manager operator as recently as 2006. "We like to point out that there are fewer LNG captains than cosmonauts in Russia," says Mr Popravko.
SCF Unicom has two ice class shuttle Aframax tankers transporting Sakhalin-1 crude oil, and has already seen two winters pass successfully. Three Varandey ice class tankers are about to experience their first real winter. More vessels for Sakhalin and Varandey are to be delivered later this year and next year.
"These two projects may give us the specific grounds to decide on what could be the best solution for the Yamal project," says Mr Popravko, speaking of the Russian oil and gas project off the Yamal peninsula in Northwest Siberia. DNV is involved in the Sakhalin project, where SCF Unicom’s technical expertise has brought a new dimension to the cooperation.
"In the case of Sakhalin-1, the client wanted the classical approach: an ice class tanker follows an ice breaker. For the second project, Varandey, our charterers preferred another approach. They wanted an ice breaking vessel which doesn’t actually need an ice breaker assistant, one that can break ice by using its own propulsion system," Mr Popravko says.
This system is already used in the Baltic, but until now it has not been tried in the Russian Arctic.
"We have a unique chance to see both projects, which are conceptually different. Through operating and managing these vessels, we can accumulate a great deal of experience and know-how. And then we can understand what could be the best solution for transportation for Yamal LNG," he says.
SCF Unicom-DNV partnership
Mr Popravko speaks highly of the cooperation with DNV, mentioning the successful results of the partnership on the Sakhalin-1 project, which started in 2001.
"At that time we didn’t have today’s specific rules and recommendations on the winterisation of ships. Ice class meant extra steel plate thickness and extra power of the main engine – but nothing about how to protect equipment and vessels from the low ambient temperature, and what particular steel grades you need. So there were a lot of practical things to determine – even how to protect the crew from the cold weather. We started working with DNV on this, and many of these things have now become part of the winterisation rules of classification societies like DNV," says Mr Popravko.
"We are ready to cooperate further, because we still need to develop particular projects of LNG transportation from the Arctic, such as Shtokman and Yamal."
Mr Popravko says SCF Unicom’s expertise is part of its business strategy. "I think that having in-house expertise and naval architects is one of our core competences and competitive advantages."
Arctic is cold enough
He has kept an eye on the problems encountered at the Norwegian Snøhvit field, where low temperatures have halted operations.
"They talk about global warming, but I think the Arctic is still cold enough. You always have some surprises and extremes will become the norm," he laughs.
SCF Unicom’s motto is ’Quality, Safety and Reliability’. "Our core business is to be an in-house ship manager, to add value to Sovcomflot," he says. Only a dozen of SCF Unicom’s vessels are not Sovcomflot. "To be abreast of what latest market developments are, and to understand trends, you still need to have some third party portfolio. But we are in a position to say no to those that compromise safety," he says.
"I think SCF Unicom has one of the best reputations of ship management companies," he says, continuing: "We can consider ourselves Russian. But we are located internationally in Cyprus, and we employ internationally. We have various cultures and experiences: Russian, Ukrainian, British, Greek-Cypriot, Greek from the mainland, Scandinavian, German. Everybody contributes."
Vladivostok
Mr Popravko grew up in Vladivostok, a stone’s throw away from the city’s marine academy. His father was a captain, his mother a naval architect who taught at the academy. "My mind was set when I was two or three years old," he says. "I wanted to be a seaman."
After graduating from the academy, he started as an able seaman on chemical tankers, rising to captain, and eventually becoming chartering manager and then CEO of the Russian shipping company Primorsk. He also attended the World Maritime University in Malmö, Sweden in the mid-90s, earning an M.Sc in Technical Management of Shipping Companies.
Mr Popravko is concerned about the global crewing situation, despite the downturn it is predicted that there could be a shortage of 40,000 officers worldwide by 2013.
"In most countries with a shipping culture, like Russia, the seafarer’s status has dropped. When I joined the industry 30 years ago, in Russia – the USSR at that time – the status of ship’s master was very high. He was well paid and had power and special status. He was an official representative of the Soviet Union. The status of the master was almost up to that of movie stars and diplomats. For various reasons, however, that has slipped. It makes me sad. That’s why it’s difficult to get young people to see shipping as a worthwhile career. We have to work hard to change this image," he says, pointing out that Unicom has put extensive effort into its training and cadet programmes, focusing on achieving high crew retention rates.
Memorable
It’s obvious that Mr Poprakvo has always loved his job. One of the most memorable experiences of his years at sea, he says, happened on a round-the-world voyage with a small product tanker. "We stopped for overhauling in the middle of the Pacific. It was 2000 miles to the nearest coast. The depth was a few thousand meters. And we were allowed to swim. You felt like you were hanging in space. When you turned your back to the vessel you saw nothing but sea. And then you realise there is nothing beneath you. And if you were left alone…"
An equally memorable – but less pleasant – experience happened in the Arctic, when he was walking alone toward the shore on watery ice floes in Point Schmit, a harbour north of Chukotka in the Russian Arctic. He slipped and fell into the freezing waters, and the ice closed in above his head. Luckily, he was young and fit, and managed to pull himself up onto the ice within a minute. "I wanted to survive," he says with a laugh.
No wonder he’s concerned about protecting his crews from the fierce waters of the Arctic.