Into The Deep - Q4 2013

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DEEPOCEAN GROUP NEWSLETTER ISSUE 1 QUARTER 4 2013


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CONTENTS

03 Welcome 04 HSE Update 06 Technology Constructor WROV’s 08 Operations Our Projects 10 The Volantis Oriental Star 12 Interview with Rick Green 14 DO Mexico helping the community 15 Get to know your colleagues 16 DeepOcean in pictures

EDITOR Tom Nightingale COMMITTEE Tom Nightingale Hilde Solberg Stepany Diaz Marcelo Vicente Nina Marie Wathne Katie Johnson Sue Hutt Jacqueline Chua DESIGN Colours PHOTO Front page and page 2 Håkon Nordvik


INTRO

WELCOME

Dear Colleagues! It is my pleasure to contribute to the new DeepOcean Group Newsletter. It is an initiative that I gladly support because communication is essential.

In a company where two-thirds of employees work offshore and with onshore employees working from nine offices, communication and the exchange of experiences, lesson learned, successes and failure is critical. We have to connect and to reach the minds and souls of all our employees and stakeholders. The main objectives in 2012 were to stabilize our businesses, to stop the losses in the UK execution centre, to retain and attract talent and to invest in our businesses after years of underinvestment. The company achieved these objectives thanks to your hard work. OUR PLAN FOR 2013 Continue making new investments (approx.. $100 million) predominately in mission equipment such as new ROVs, survey equipment, module handling system of the Rem ocean, trenchers for the Havila Phoenix. Increase profitability through higher utilization and better execution. I am pleased to report that we are making big steps in unlocking the true value and potential of this great company. We are in the middle of a break-out growth year. A record total of 17 vessels are active in our fleet together with 28 ROVs and 8 trenchers. All these assets are operated, supported and managed by the best talent in our industry. Most importantly we are seeing positive developments in the area of our safety performance. We have had ‘only’

two lost time incidents year to date and I am pleased to report that both employees are back working. I am hopeful that this year over year improvement is the result of our safe behaviour program – ACT for Safety – Have the right ATTITUDE for Safety, have the COURAGE to speak up and challenge hazardous work practices and through TEAMWORK, work together with your colleagues and not against them. The fundamentals of the industry are strong with the number of subsea trees on order equalling half of the number of subsea trees installed worldwide and the continued increase in oil & gas and wind energy demand. On the supply side we see a large number of new entrants with irrational exuberance which leads us to be cautious and manage our balance sheet for the cycle to take advantage of opportunities to come. Another concern is the continued cost escalation in Norway and Brazil resulting in potential project delays. Our shareholders seem content with the performance of the company and are not making any demands for removing liquidity from the company. This is important because growth is essential for a company like DeepOcean. Growth is life. To conclude I would like to stress that this newsletter is made by employees and for employees so feel free to prepare and submit your contribution. It will be immensely appreciated! Let’s have a safe and strong finish to 2013.

Yours truly

Bart Heijermans Chief Executive Officer DeepOcean Group Holding

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HSE

ACHIEVING SAFETY EXCELLENCE The DeepOcean group has developed and launched a key programme focused around our people with the aim of accomplishing our goal of an incident free workplace.

Safety Leadership

ACT for Safety is the brand for DeepOcean’s Behavioural Safety Programme and it underpins the key attributes of how we want our people to develop safe habits that will eventually become common practice.

OUR SAFETY VISION

One Team, One Goal, Incident Free!

Following on from the initial safety climate survey that was conducted across all areas of our organisation many of the identified improvement actions have been achieved to date. Our Safe Behaviour Charter was launched by our CEO Bart Heijermans in January 2013 along with promotional material and updates to our company website.

Safety leadership and positive communication forms a critical element of ACT for Safety, therefore a strong focus is placed on developing and coaching our safety leaders, equipping them with the skills and techniques to enable them to influence people effectively and improve overall performance. To date over 360 employees from Norway, UK, Netherlands and Singapore have attended one of the safety leadership workshops which have been pivotal in communicating the philosophy of the programme. This is a fantastic achievement and the commitment from participants in the workshops has been excellent. Our next steps are to roll out the leadership training to our colleagues in Brazil and Mexico and continue with our employee awareness presentations throughout all areas of the business.


HSE

MEET THE HSEQS TEAM QUEK BENG CHUAN APAC HSE Engineer

My day to day responsibility within DeepOcean is to ensure that the HSE Management System is implemented in all areas of our operations.

I am involved in many activities such as various project support activities including risk assessments, workplace inspections, mobilisation support, training, incident investigation and audits. I also provide support during the tender stage of our projects to the Commercial Team. My work with DeepOcean has brought me many joys including travelling (looking past delays to flights and luggage) to destinations that have certainly opened my eyes to the varying cultures and standards. I have travelled to regions across the globe (literally) to support the business including the Bahamas, Napoli, Shenzhen and Tasmania.

The key challenges when working in different regions mainly comes in the form of ‘Communication’ and ‘Culture’. By understanding culture it helps to develop the most appropriate way to communicate with the local subcontractors we often work with. I am extremely thankful that DeepOcean has provided me with such opportunities and I always look forward to the next ‘challenge’ that I am faced with. Amongst the key roles I have mentioned, one that I am particularly proud of is being able to ‘spread the good about health and safety’. Always expect the unexpected when you attend your next HSE presentation or induction with me! My aim is to change people’s mind-set that HSE is boring to one of ‘F.U.N.’ – Factual, Universal and Nurturing. I want people to play a more active role in HSE, not just at work but at home. Remember if you change nothing, then nothing will change . . .

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TECHNOLOGY

CONSTRUCTOR ROV’S

The Constructor 1 and 2 WROV’s were mobilized on the Pacific Osprey just days after their delivery to DeepOcean.

These brand new systems were the vehicle of choice for the heavy duty decommissioning work waiting at the H7 platform. The new Kystdesign WROV’s are larger and more powerful than our well known Supporter WROV. The main advantage of these systems is their powerful auxiliary hydraulic capacity, which allows for running all tools directly from the WROV. This avoids the use of hydraulic umbilcals also being deployed from the vessel, which in turn made the

launching and recovery of large tools much safer and efficient. Each Constructor WROV was equipped with a custom made belly basket holding 3 hot stab receptacles. This made it possible to connect to all tooling subsea without losing time to reconfigure the hydraulics. The biggest tool used was the 64’’ diamond wire cutting tool. We used this to cut up the platform legs. These piles with an outside diameter of 53 inch and 8 inch wall thickness were cut in less than 4 hours.


TECHNOLOGY

FIRST DIVE AT H7 DeepOcean have now performed all the subsea work required to remove a 8300 tonne platform from the North Sea, a great accomplishment.

The WROV outperformed all expectations. They completed the project and worked more than 80 days without going on breakdown. On the 28th of June the last jacket section of the H7 platform was finally lifted onboard the Pacific Osprey. This all would off course not happened without the great people operating and supporting the operations. Thank you for making this first job for the Constructor WROV’s a success!

FINAL SECTION OF H7 JACKET 2 years of planning and preparations, 14000 onshore man-hours, 26000 offshore man-hours and the contribution of more than 100 different DeepOcean colleagues made this possible.

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OPERATIONS

OUR CURRENT OPERATIONS

A RECORDER C CONCOPHILLIPS P EKOFISK A N.WAVE C STATOIL P SNORRE A RESPONDER C STATOIL P SNORRE A ASSISTER C TECHNIP P STELLA (PH2) A DEEP VISION C BP P IRM A REM FORZA C BP P IRM A EDDA FLORA C STATOIL P IRM A EDDA FAUNA C STATOIL P IRM A EDDA FONN C STATOIL P IRM A VOLSTADSURVEYOR C STATOIL P IRM

A ARBOL GRANDE C DIAVAZ/PEMEX P IRM

A DEEP ENDEAVOR C PETROBRAS P IRM

A VOLANTIS C DIAVAZ/PEMEX P IRM

A CBO ISABELLA C PETROBRAS P IRM


OPERATIONS DeepOcean is operating on projects in the North Sea, Gulf of Mexico, Brazil and Asia Pacific. The group currently has 15 vessels working within the fleet. Many of these are supporting long term contracts in Mexico, Brazil, UK and Norway with Installation, Maintenance and Repair (IMR) activities. In China and The North Sea DeepOcean also has a number of additional vessels working on other activities including Trenching, Permanent Reservoir Monitoring system installation and survey.

Recent projects include the H7 Platform removal decommissioning project offshore Norway, BARD Wind Farm cable installation and trenching offshore Germany, Stella Phase 1 Trenching offshore UK, Dolwin Wind Farm cable trenching offshore Germany and Andrew Area Development umbilical trenching and survey offshore UK.

A VOLANTIS C COOEC P LIWAN

KEY A = ASSET C = CLIENT P = PROJECT

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VOLANTIS

THE DYNAMICALLY POSITIONED MULTI-ROLE SUBSEA CONSTRUCTION VESSEL

The Volantis is designed for operation in severe weather conditions, the vessel demonstrates high station keeping capability whilst remaining environmentally efficient. The vessel incorporates a 150te Active Heave Compensated subsea crane and is permanently mobilised with an Installer Work Class ROV and Seaeye Panther XT III A Work Class ROV, which can be launched and recovered in high Sea States.


VOLANTIS

KEY FACTS // 96 concrete mattresses at 8 subsea pipeline/cable crossings to COOEC design. // 504 km of pipeline trenching water depths ranging from 40m to 190m // 5000 hours (208 days) on seabed trenching the pipeline (Total of approx. 200 Dives i.e. 400 Launch and Recoveries).

Operating and maintaining a vehicle such as UT-1 requires a dedicated crew with a range of skills both technical and personal in order to keep a high tech installation operating in remote areas, with limited access to our usual supply chain. Add in different cultures, long periods at sea and more than the odd Typhoon and you have challenges that are not usually met on a day to day basis. Pipeline Trenching commenced in June 2012 and to date 1m to 2.5m max lowering of the 30” pipeline has been accomplished despite a challenging low Specific Gravity pipeline and hard seabed conditions. DeepOcean’s offshore teams on board have kept it operating despite heavy fishing debris and other objects on seabed damaging UT1 thrusters and other hydraulic components (Total of 267hrs or 11 days cumulative were lost in downtime due to such debris on seabed). A total 242km of Pipeline pre-trench survey and 294km of post trench survey has been completed by Installer ROV.

The Volantis has an extensive global track record for performing comprehensive construction, installation and trenching projects on a highly productive basis. The spread also includes a 2000te rated carousel to facilitate the installation and/or simultaneous burial of flexible products. LIWAN PROJECT (SOUTH CHINA SEA) DeepOcean’s Volantis vessel and UT-1 spread completed 488 days of mattress installation, survey and pipeline trenching activity in South China Sea in August 2013.

This is the first large diameter 30 inch pipeline trenching project for UT-1. The world’s largest and most powerful free flying Jetting Trencher has been operating on the LIWAN Trenching Project in China since April 2012. UT-1 has been mobilised on the purpose built support vessel Volantis from delivery to DeepOcean. The vessel, vehicle and their respective crews have successfully completed many projects around the world including projects offshore Norway, UK, Egypt, Korea and now China.

EAST MEETS WEST On-board Volantis and UT-1 many nationalities are represented, with crew from as far North as Norway and Sweden to the Southern corners of Australia and New Zealand, with Brazilian, British, Russian, Malaysian, Indonesian, Philippine and Chinese. It all makes for some interesting conversations. The Project Team is based in Singapore and China and support teams in UK/Norway have successfully handled the challenges of crew permits, crew changes and logistics support operations running under COOEC (Client) instruction in South China Sea.

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INTERVIEW

AN INTERVIEW WITH RICK GREEN GENERAL MANAGER Den Helder Office


INTERVIEW

The work here is diverse, challenging, inspiring and there is “never a dull moment”!

How many people work in the Den Helder office? Eight and a half people currently work in the Den Helder office. In addition, we have three offshore employees (1 Hydrograhic Surveyor, 1 Offshore Manager & 1 Captain) as well as one person on secondment in the Haugesund office. When did DeepOcean commence with operations from this office? The actual entity was incorporated in September 2000 by myself & Leo Gout who is also still a member of the team in Den Helder. We became part of DeepOcean after the merger with Oceanteam in the year 2005. What job types are based here? The Den Helder office employs a wide range of positions, with a current focus on Survey Operations. What types of projects are led by them team in Den Helder? At this moment providing survey support on DeepOcean UK (Darlington) projects with the Maersk Assisster, Maersk Recorder, Northern Wave, Volantis and

Maersk Responder as well as providing project management support to DOAS for international projects. Tell us about the Deep Helder vessel The Deep Helder (new build) will be delivered mid 2014. It will be managed from the Den Helder office. This will mean expanding the current team and working for external customers again, in the same manner as previously when we ran the MV Multraship Commander. The Deep Helder will be a cost effective vessel operating on survey, Installation, Maintenance and Repair (IMR) and Intervention projects for our customers in the Oil & Gas and Renewable markets. The 65m long dynamically positioned vessel is designed for low fuel Consumption and high comfort class notation. The vessel is equipped with an offshore crane, Survey and ROV systems. Deployment of equipment can be via Moon Pool or A Frame. A total of 50 personnel can be accommodated on the vessel. What interaction do you have with other offices in the Group? The Den Helder office is fully integrated with DeepOcean, providing support

and personnel to DeepOcean’s projects worldwide. What can you tell us about working in the Den Helder office? The work here is diverse, challenging, inspiring and there is “never a dull moment”! We have a strong and committed team, most of who have been working here for plus 6 years. Interaction between colleagues is very relaxed (open door policy), respectful and fun.

Deep Helder is a cost effective vessel operating on survey, Installation, Maintenance and Repair (IMR) and Intervention projects for our customers in the Oil & Gas and Renewable markets. The 65m long dynamically positioned vessel is designed for low fuel Consumption and high comfort class notation. The vessel is equipped with an offshore crane, Survey and ROV systems. Deployment of equipment can be via Moon Pool or A Frame. A total of 50 personnel can be accommodated on the vessel.

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ENVIRONMENT

DEEPOCEAN IN FAVOUR OF ENVIRONMENT Mexico Office

DeepOcean is concerned about the environment and the impact in the work setting and community.

Being socially responsible is important as we continue to grow and increase our activities around the world. For this reason, DeepOcean in Mexico has implemented some measures in benefit of both work and the community. DeepOcean has implemented a number of important activities in favour of the environment. RECYCLING OF PRINTING CONSUMABLES So far this year, DeepOcean has recycled 12 HP print cartridges which will of course increase by the end of the year. HP gave us an appreciation for our participation in this relevant activity. This document is illustrated below. ENERGY SAVING This program has been implemented since 2012 with excellent results. We have introduced energy saving light bulbs and now unplug all electronic devices, such as computers, printers, etc, when we are not using them. The following table represents the electricity consumption between the year 2012 and 2013.

Energy consumption

Appreciation for our participation in the recycling of printing consumables.

RECYCLING OF USED COMPUTER EQUIPMENT TO DIF (Governmental organization which supporting to families) DeepOcean in Mexico donation 9 computers to DIF. The delivery was made in two stages. In the first stage we delivered five computers and the last one we delivered four additional computers. This will help to the development of learning in children and teenagers inside the DIF program. DONATION OF TRASH CANS DeepOcean is donating trash cans in benefit of the community; these trash cans will be distributed in schools, parks and beaches to avoid litter and the help keep public areas suitable for all to use. These activities highlight the small steps that we can all take to make a big difference. Conratulations to our team in Mexico!

January

February

March

April

May

June

2012 old office

6679

6861

6905

7755

9155

7868

2013 new office

4795

5592

5753

6065

8102

7244

SAVINGS

1884

1269

1152

1690

1053

624

SAVINGS %

28.21

18.50

16.68

21.79

11.50

7.93


PEOPLE

HEAD OF GEOTECHNICS UK

I am genuinely impressed with the scale of operation and professionalism of staff at all levels within the company.

PHILLIP WILSON

I joined DeepOcean in June and I am genuinely impressed with the scale of operation and professionalism of staff at all levels within the company. I am a Chartered Civil Engineer with over 35 years in Geotechnics, which put simply is how soils support (or don’t support) major infrastructure such as buildings, motorways, railways, airports, ports & harbours. I have had a mixed career with periods in the private sector and as a senior Civil Servant advising Ministers on a variety of issues from contaminated land to the EU Working Time Directive. I have provided geotechnical advice on projects ranging from desert oil pipelines, oil refineries, oil storage tanks, gas plants to Air Force &

TECHNICAL OPERATIONS BRAZIL MAURICIO GUIMARAES

In DeepOcean we have an excellent work environment with highly qualified and proactive professionals.

Naval Facilities and Government buildings including the Houses of Parliament. I currently work with the DeepOcean Geotechnics team, who analyse soil data provided by our clients, to enable selection of the appropriate asset and performance rate, which impacts directly on the price we quote for seabed intervention projects. Most of our work is unseen, being buried in several hundred metres of water, but the impact of our work is highly visible on the bottom line of the finance balance sheet! Outside work, I enjoy skiing, walking, cycling, socialising, cooking and karaoke!

Working at DeepOcean has been a great and challenging experience. Being part of this group since the beginning here in Brazil has also been challenging in order to see the company established and strong within the region. In DeepOcean we have an excellent work environment with highly qualified and proactive professionals. Here in DeepOcean Brazil we have direct access to the management team in Brazil and also with a lot of very experienced people from Norway. DeepOcean always encourages us to have an active participation and an open communication between the teams both onshore and offshore in order to work as a unit. DeepOcean also has the best ROV technologies and systems that I have ever worked with. In the five years that I have been part of this team, I have been able to work with extraordinary people and leading assets. I have had the opportunity to enjoy many new and meaningful experiences making me stronger personally and professionally, to go through new challenges and to help keep DeepOcean growing in Brazil and worldwide.

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THANK YOU TO ALL DEEPOCEAN EMPLOYEES WHO CONTRIBUTED TO THIS EDITION

DEEP ENDEAVOUR ARRIVES IN BRAZIL

NORNE TIE-IN PROJECT 6

NORTH SEA SUNSET

EDDA FLORA

H7 PLATFORM REMOVAL 1

EDDA FLORA

PCP2 CABLE LOADING TRAILS

KILLINGOY BASE HAUGESUNG 2

SNORRE IN FLORØ

Marcelo Paes Guimaraes

Andreas Bergum

Paul Challenor

Please send input for consideration to your local HR/Communications team or directly to Tom Nightingale / Hilde Solberg. Special Thanks to Ben Dalton for vessel image and blueprint design. www.deepoceangroup.com

Tore Bjørn Viksøy

Geir Nesse

Carl Otto Jansen

Femi Sapoken

Jon Ivar Aasboe

Lee Smith


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