Newsflash Offshore Energy no. 19

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Edition 19 | November 2013

Exhibition & Conference

Newsflash Offshore Energy offshore oil and gas E&P • transport and storage • maritime services • offshore wind offshore supply • offshore contracting • offshore vessels • deepwater development • drilling

Save the date: Offshore Energy 2014 Next year Offshore Energy Exhibition & Conference will be held on 28 & 29 October.

We look forward to welcoming you to Offshore Energy 2014!

Read more about: • Young Bachelor of Technology graduates are on their way • Number of large projects and associated risks rapidly increasing at the Offshore Industry • Safepack™ unveiled at Offshore Energy • AYOP pavilion great success • Offshore Gas Super Projects: back on the shelf?

Column by Jules Croonen on page 3

Offshore Energy 2013 confirms healthy industry outlook The sixth Offshore Energy Exhibition & Conference on 15 & 16 October 2013 welcomed 9,123 international attendees, an increase of 20% compared to last year. The two-day event had a lot of new features. The main take-away from the event: despite recent cancellations of some big offshore projects, the industry has a healthy order book. The toughest challenge is neither technical nor financial: it’s recruiting the right people to keep the industry running.

Ko Colijn, General Director of the

Association of Dutch Suppliers in the Oil

Netherlands Institute of International

and Gas Industry “IRO”, and Coert van

Relations “Clingendael”, addressed

Zijll Langhout, Managing Director of

“The oil & gas sector is currently

the current and expected impact of the

Offshore Energy’s organizer Navingo BV,

dealing with the shortage of trained

political situation in the Middle East on

Ko Colijn opened Offshore Energy 2013

technical people.”

the oil & gas industry during the official

with a symbolic push on the button.

opening ceremony. Together with Sander

By Jules Croonen, Vice President Human Resources BeNeLux and France, Shell

Vergroesen, Managing Director of the

www.offshore-energy.biz

Continue reading on page 2

6 2

Young Bachelor of Technology graduates are on their way. The ball is now in the business community’s court.

By Ramón Feuth, Commercial Manager, Dosign Engineering

Not a day goes by without the media

To date, the results are fabulous. Both our

reporting about the shortage of young

clients and our “dual Dosigners” are

Bachelors of Technology. However, at

delighted. With these excellent credentials,

Dosign, we keep wondering if this shortage

added to the fact that another new batch

is as bad as people suggest - at least for the

of dual Dosigners has become available, we

time being.

expected that the new group of 110 dual Dosigners would have immediate

As an employment agency for highly

employment as of 1 September 2013. More

educated technicians, and to help reduce

to the point, we thought that employers

the shortage, we have held a dual study

would be queuing up to get hold of this

program, together with a number of Dutch

young talent. That was not quite the case.

Ceciel, 3rd year dual B. Tech Mechanical Engineering

struggling to keep their heads above water, and recruiting more staff is not part of their

Universities of Applied Sciences, for the last

short-term business plan.

three years. This program comprises four

About two months later, 88 dual Dosigners

years of studying (B. Tech Mechanical or

have found employment. But that leaves

Electrical Engineering), 28 hours a week

22 technicians still out of a job! And, in

To summarize, there are many genuine

relevant Bachelor’s level work, as well as

some cases, our advisers took great pains

reasons why it takes longer than one might

four years of additional technical and

to find suitable workplaces. This demands

expect for young and upcoming Bachelor of

managerial courses and training.

an analysis, of course. Why is it so hard to

Technology graduates to find suitable work.

find suitable work for these extremely

To be perfectly clear: all this constitutes no

There is a huge interest among young

motivated young people? There is not just

problem for Dosign Engineering. After all,

people for these difficult programs. For

one simple answer.

the fact that demand and supply in the (technical) labour market are not in balance

the 2013 - 2014 academic year we received 1,150 applications, from which we selected

We note that many companies exist by the

with each other is an important part of why

110 motivated young people. By comparison,

issues of the day: “Yes, we do expect a

we exist. We would like to somewhat

in 2011 we started with 20 employees and

shortage at some stage in the future, but at

modify the picture that has been created

this number grew to 80 in 2012. Overall, a

the moment we’re doing fine.” Or: “We are

about substantial shortages of highly

substantial growth. This allows us to make a

so busy right now; there is no way we will

educated technicians. This picture does not

contribution to the inflow of highly educated

be able to show young people the ropes.”

always reflect reality, at least not for the

technicians in the business community.

Unfortunately, many companies are still

time being. www.in4jaaringenieur.nl

Exhibition

industry, research into solutions to

offshore industry, and was again sponsored

Continuing on its steady path of growth,

minimize environmental impacts of oil & gas

by Rabobank and organized with input

Offshore Energy welcomed almost 500

operations, and opportunities in East-Africa.

from knowledge partner Deloitte and

exhibitors (414 in 2012) who showcased

An international faculty of experts,

supporting partner Siemens Industry

their innovative ideas, products and

speakers, and delegates from across the

Petroleum Club.

services to the industry. The exhibition

globe exchanged ideas and shared

was extended from one to three exhibition

knowledge. Read more about the conference

Master Classes

halls, and for the first time included a China

sessions on page 8.

Another new feature this year were the

Continued from page 1

Master Classes for young talent in the

Pavilion and a cinema. True to tradition, both days ended with networking drinks

Offshore Energy 2013 featured two new

offshore industry. Masters from Van Oord

on the exhibition floor.

panels: the Drilling & Dollars Panel,

Offshore Wind Project BV, Heerema

sponsored by ABN AMRO, and the Human

Marine Contractors, and Damen Shipyards

Conference

Capital Panel, sponsored by Dosign

Group exchanged ideas with young talented

This year’s technical program covered

Engineering. Both panels are spin-offs from

students and professionals. These sessions

advances in wave and tidal energy, state of

the Industry Panel that was first held in

took place in an interactive setting that

play in North Sea exploration & production,

2012. This year’s Industry Panel discussed

was moderated by De Baak, the Institute

state-of-the-art vessels for the offshore

the future structure and strategy of the

for Leadership and Entrepreneurship.

Column by Jules Croonen

3

Expansion tech talent pool imperative The oil & gas sector is currently dealing with the shortage of trained technical people. In the Netherlands this applies particularly to technicians at intermediate vocational level (“MBO”), but also for highly skilled technicians. Because Shell is a strong brand, we manage to attract good engineers. However, the companies we work with have difficulty recruiting staff and that can also be a problem for us. Additionally, Shell will also experience more difficulty with recruitment as the baby boom generation begins to retire.

A new generation is needed to fill the gap. That is why we must fish from a larger pond, to increase our technical talent in every possible way.

Column

Jules Croonen Vice President Human Resources BeNeLux and France, Shell

At the moment, our pond is too small.

At Shell, working conditions and company

University of Technology, who are about

Among other reasons, this has to do with

culture are important to both attracting

to graduate, can exchange thoughts and

technology’s current image. With Jet-Net,

and retaining staff. Employees like the many

experiences with young female Shell

a youth and technology network in the

opportunities for personal and professional

employees. Shell has organized a SHE

Netherlands, we try to bring businesses

development that we offer, and Shell’s

or “Shell High-tech Event” webinar for

and schools in contact with each other.

great diversity. This is because we are an

15 November, specifically aimed at women

This allows students to see how much fun

international company, but also because

who are looking for a job in engineering.

applied technology can be. Our initiative is

we aim to attract a wide variety of people;

Through this webinar, female job seekers

beginning to bear fruit. Since our promotions started, around 50% of students in higher and pre-university education (“HAVO”/”VWO”) have chosen for a science and engineering profile. A negative image of the sector seems to effect a large number of vocational students. We want to change

“A new generation is needed to fill the gap. That is why we must fish from a larger pond.”

this. We do this by organizing events for students and their parents, so that they can see that working in a technical capacity

including, for example, people with a

can gain knowledge about Shell and

within the oil & gas sector is clean and

different orientation or with a disability.

exchange information about their personal

challenging work; that students who

This helps to increase our pond. Diverse

background. This is the second SHE webinar

complete a technical study are virtually

employees in-house also ensure that there

this year. 50 women participated in the last

guaranteed a job. Some people are put off

are people who look at the work from a

webinar, and five of those women have

by the fact that Shell is so international,

different point of view.

been offered a job!

but nowadays a person can spend their entire career at Shell in the Netherlands if

Shell also makes an effort to recruit women.

they want. An international environment,

For example, in the Netherlands we offer

but still in the Netherlands.

a mentoring program. Women from Delft

4

Impressions of Offshore Energy 2013 Exhibitor News Van Oord, Theo de Lange (Manager business development) For us offshore energy is a very important market, and both the oil and gas activities as well as the offshore wind activities are growing in importance for Van Oord.

Next to that, I think we simply should be at the Offshore Energy exhibition because a lot of our clients are walking around there, making it good for our network.

My feeling is that every year Offshore Energy is growing a bit, and I think that is a good sign. The reason is probably that the Netherlands is still playing a strong role in the offshore energy field.

Heerema, Bas Bieckman (Manager recruitment) As a recruitment manager for Heerema, it is my job to find new talent. This is the exhibition in the offshore energy industry were we find the public we need.

Boskalis, Bert van der Velden (Commercial manager subsea services) For Boskalis it is important to be here to be visible in the oil and gas industry. This applies to the renewable energy industry too, which is a market where we can also provide our services that we traditionally provide to the oil and gas industry.

Gusto MSC, Coen Landa (Manager marketing and sales) I think Offshore Energy is a great event in Holland. All the main parties in the playing field of the offshore energy are present and we are happy to be one of them.

Offshore Energy has the potential to be one of the main international offshore events, and that is why we are here.

Damen, Arnout Damen (COO) We are here for the sixth time and it is a wonderful event, the quality of the visitors is very high. Damen Shipyards is one of the bigger shipyards in Europe, and we focus on the offshore industry.

This is an offshore trade fair, so this is where we need to be.

5

Exhibitor News ABB, Bram van Meel (General manager industry) I think that Offshore Energy is an excellent place to show all the solutions that we have. ABB is known for all their products, but we also have specific solutions for the offshore energy area.

So what better place to show them off than at Offshore Energy. I think the right crowd and the right people are here. Next to that, there are a lot of interesting conference speakers.

Blue Water Shipping, Thomas Bek (Global manager Oil & Gas division) We visited the exhibition last year and found it to be quite interesting. Offshore Energy provides a good mixture of international companies, and a lot of local companies as well. Due to this we want to promote our company to the local companies in the Netherlands. And I must say that we are very impressed. It all looks very well organized; there are a lot of people attending. We have high hopes.

Yokogawa, Niels Koek (Manager industry sales) For Yokogawa it is very important to show our face. Many of our relations can visit us at Offshore Energy, and our sub suppliers and companies with which we do business are present. For us it is the ideal moment to work on our relations and to do some PR.

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Thank Exhibitor youNews for your contribution to Offs In association with Gold sponsor

Supporting partners

A A. Mauritz & Zn. B.V. | Aandrijf Technisch Buro BV | ABB | ABN Amro | Abraservice Nederland BV | Abuco BV | ACE VALVE (WENZHOU) CO., LTD | Achilles First Point Assessment Ltd | Acta Marine | Adesso Valve | Aggreko Nederland BV | Ajax Chubb Varel | Alara-Lukagro Noise Control Solutions | ALE | Alewijnse Marine Systems | All-Energy, Exhibition & Conference | Allpacks International | Allport | Alphatron Marine B.V. | Alphatron Security Systems B.V. | Altena Group | Amasus Offshore | Ampelmann Operations B.V. | AncoferWaldram Steelplates b.v. | Anping Qiangguan Ironware Mesh Co., Ltd | Applus RTD | ASCO Holland (Logistics) B.V. | Ascom (Nederland) B.V. | ASTAVA B.V. | Atlas Copco Nederland B.V. | Atlas Services Group | ATM | Atradius | AVEVA GmbH | AYOP | B Baker Hughes | Bakker Groep Coevorden B.V. | Bakker Sliedrecht Electro Industrie B.V. | Ballast Nedam | Balluff BV | Bampro Marine | Barge Master B.V. | Bayards Aluminium Constructie B.V. | BCS Europe | Beal - Edelweiss S.A.S | BEIJING FILTER TRADE COMPANY LIMITED | Bek & Verburg | Beldick Automation B.V. | Biardo Survival Suits B.V. | BigLift Shipping | BK Maritiem | Blomsma Signs & Safety | Blue Water Shipping | Bluestream Offshore B.V. | Bluewater Energy Services | BMC Formaco BV | BNR Nieuwsradio | BOIS Equipment Rentals B.V. | Boon Transport | Bosch Rexroth B.V. | Boskalis Offshore | BOW Terminal | BRAND TS | Brandmarion | Breman Machinery BV | Breman Offshore BV | Brevini Benelux | Bring Cargo B.V. | Broekman Project Services bv | Brunel | BUKO | Bukom Services B.V. | Bumaco | Bureau Veritas | BUS | C Cadac Group | Callidus Group | CANGZHOU ZHENGXU PRECISION CASTING CO., LTD | CAPE Holland Group | Cape Netherlands | The Carbon Trust | Carrier Marine & Offshore | Cathie Associates SA/NV | Cavotec Nederland BV | CB&I | CCA Containers | Central Mudplant and Fluid Services B.V. | CEVA Logistics Netherlands B.V. | Chalmit Lighting | Changshu Tianping Meter Co., Ltd | China Council for the Promotion of International Trade (CCPIT) | C-Job & Partners | Clingendael International Energy Programma | Combifloat | Complete Store van Dijk b.v. | Compressor Systems Holland BV | Conbit Engineering BV | Conquest Offshore B.V. | Cooper Crouse-Hinds B.V. | Crane Inspection Services B.V. / 2Go Access | Croon Elektrotechniek | Crowe Horwath | CT Systems | Cummins Inc. | D Damen | Daqing Hengtong Electronic Co.,Ltd. | DCE | Deep BV | DeepOcean BV | Deloitte | Deltastaal | Den Helder Airport C.V. | Den Helder Stores | Den Helder Support Services (DHSS) | DHTC b.v. | Dieseko Group | DIRECTORATE GENERAL OF OIL AND GAS INDONESIA | Directory Oil & Gas Netherlands | Discom BV | DMT MARINE EQUIPMENT | DNV | Doedijns Group International | Dosign Engineering | Double D Marine Equipment B.V. | Dräger Safety Nederland B.V. Fire & Gas | Dräger Safety Nederland B.V. Marine & Offshore | DSE Oil and Gas B.V. | DSR CORP | DUC Diving BV | Dutch Barge Company | Dutch Drilling Consultants B.V. | DVV Media Group GmbH, Ship&Offshore, Schiff&Hafen | DylanGroup | E EBN | ECN | Eekels Technology B.V. | ELA Container GmbH | Elcee Holland B.V. | Elcometer NL | Electromach B.V. | Elsto Transmissions | eL-Tec Elektrotechnologie | EMCE Winches | EMHA Technisch Bureau | EMS Ship Supply - Seven Seas Shipchandlers | Endenburg b.v. | Eneco| Energy Valley | Enerpac | Enviro-1 Distributed by Tennick Oilfield Services b.v. | Escher Process Modules | euro HÜBNER benelux b.v. | Euro Trade Nederland BV | EUROPORT / Ahoy Rotterdam | Euro-Rigging | Eurotronic BV | EWEA (European Wind Energy Association) | Expo Valve | Expro North Sea Ltd. | F Fabricom Offshore Services B.V. | Fairmount Marine | Fawic BV | Femto Engineering BV | FINDLAY IRVINE LTD | Fircroft Engineering Services BV | First Point Assessment Ltd. | Fliteline BV | Floatex Nederland B.V. | Flying Focus BV | FMJ Marine & Offshore B.V. | FoundOcean | Frames | Franklin Offshore Europe BV | Friesland Staal | Fugro | Fugro Survey & Geotechnical | G G&G International nv | GDF SUEZ E&P Nederland B.V. | Geberit B.V. | Gebr. Henschel GmbH | Gelis Nederland | Geometius / PrimeGPS | GeoSea N.V. | Geveke Pompen | GIEK | Globecomm Europe BV | GloMar Shipmanagement BV | Green Giraffe Energy Bankers | Grundfos Nederland BV | GS-Hydro B.V. | GSS Marine Services BV | Gulf Oil Nederland B.V. | Gunneman BV | GustoMSC B.V. | H H2M | Haagh Protection BV | HANOVA INTERNATIONAL LIMITED | Harding Safety BV | Harland and Wolff Heavy Industries Limited | Hatenboer-Water | HAZO Techniek B.V. | HEBEI HAIQIANWEI STEEL PIPE CO.,LTD | Heerbaart Machinefabriek B.V. | Heerema International Group Services SA | Heerema Marine Contractors | Heerema Offshore Services | Heinen & Hopman Engineering BV | Hempel | Hendrik Veder Group | HGG Profiling Contractors | Hi-Force Nederland B.V. | Hillebrand | Holland Shipyards | HONOR Safety & Consultancy B.V. | HSM Offshore | HTT GmbH | Huisman | Hycom-Hydac International | Hydrasun BV | HydraulIQ | HydrauRent | Hydrauvision | Hydrex NV | Hydrotek BV | Hytorc Nederland BV | I IFS Benelux | IHC Motion Control | IMARES | Imbema Groep | IMT B.V. | Imtech Marine Netherlands | Indofin | Innovative Input | InnoVfoam B.V. | InterDam B.V. | International SOS | InterStep B.V. | INTRAMAR insurances | iPS - Powerful People | IQ-Pass | Irizar Forge | IRO - Dutch Suppliers Association | Iskes Towage & Salvage | Isolatie Combinatie Beverwijk BV | IST Marine Service Group | Iv-Oil & Gas | J Jamboree Neckwear and CustomCufflinks | JB Systems BV | Jiangsu United Asia International Exhibition Co., Ltd | Joop van Zanten Staalservice BV | Jotun B.V. | Junttan Oy | K Kabelschlepp Metool Ltd | KAIDONG GROUP CO., LTD | KAMAG Transporttechnik GmbH & Co. KG | KCI b.v | Kemper Shipbuilding & Offshore (KSO) | Kenbri Fire Fighting B.V. | Kenz Figee Group | Keppel Verolme B.V. | Kewei Intelligent Technology Co.,Ltd. | Kingspan Environmental Ltd | Kongsberg Maritime Holland BV | Koninklijke Nederlandse Vereniging voor Technici op Scheepvaartgebied | Konutherm BV | Koole | KOTUG International b.v. | Kros bv | KVSA Logistics |

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shore Exhibitor Energy News 2013 Sponsors and partners

AA_3coloursU.eps ABN AMRO 3 PMS colours for uncoated paper Width shield: 20 mm Overlap: 0,05 mm

KWx B.V. | L Labrujere Groep B.V. | Lagendijk Equipment | Lapp Benelux B.V. | LEAD VALVE CO., LTD | Liebherr | Lift-Tex Industrie | Lishui Ouyi Valve Co., Ltd | LKAB Minerals | LKL Oceantrade | Lloyd’s Register Nederland BV | Load Systems UK Ltd | Louis Reyners BV | LSB Sky-Access | Lubbers Transport Group | Luyt Groep BV | LV Equipment BV | M M.S.E. Metal Service Europe BV | Machine & Lierenfabriek Kraaijeveld | Machinefabriek G. van der Ploeg bv | Magnaparts B.V. | Main B.V. | Mammoet Nederland B.V. | MAN Diesel & Turbo Benelux BV | Manuplas Ltd. | Marin | Maritieme Academie Holland | MaritiemeVacaturebank.nl | Maritime by Holland | Maritime Campus Netherlands | Maritime Journal | Maritime Shipcleaning Rotterdam BV | Marsh Nederland | Matecs B.V. - Machining Construction Service | MBO Raad | McKinsey & Company | MCW Studio’s | MEO BV | Merford | Metaalgaasweverij Dinxperlo WIRE WEAVING CO. LTD | METAGRO - Metaalbouw Groot-Ammers BV | MFE Machining & Construction B.V. | MHF Contracting BV | Ministerie van Defensie | Minks Kunststoftechniek BV | MME GROUP | Mobilis Rentals & Services | Mojo Maritime Ltd | Momac | MOPP bv | MPHolland International freight forwarders | MSIS Chantiers ALLAIS | Mulder Transport | Muller Dordrecht | MULTI | Multimetaal | Multraship | N N.M. Heilig B.V. / Nederhoed B.V. | NAUTA SHIPREPAIR YARD | Nautikaris bv | Neptune Shipyards | Netherlands Africa Business Council | NHN Development Agency Holland North | NIBC | NICOLAS Industrie | NironStaal | NNOW | No Limit Ships bv | NOGEPA | NOORDWEST Services & Security B.V. | Nord-Lock Benelux B.V. | Nortek B.V. | Notra B.V. | NRG | NRG Magazine | NV Port of Den Helder | O Oac-Group | Oceanic Marine Contractors | Oceanteam Shipping BV | Oceanwide | Offshore Ship Designers | Offshore Visie / Offshore Holland | Oliver Valves Nederland B.V. | Ommeren Metaaltechniek BV | Oranje Nassau Energie | Orga Offshore | OSBIT Power Ltd | Oxifree Holland | P P.C. Jansen Marine & Offshore Trading BV | PANOLIN | Parker Hannifin B.V. | Parts Supply Worldwide BV | Paul Meijering Stainless Steel | Peterson | Peterson IJmuiden B.V. | Peterson Recruitment | Peutz bv | PFF Group | Pharos Marine Automatic Power Ltd | Plating Solutions | Pleuger Water Solutions | PMF MECHANICAL | Policy Research Corporation | Pon Power | Port of Amsterdam | PowerFlex Fluid Handling Products B.V. | Praxair BV | Procint Process BV | Producciones Gudnus SL | Profex BV | Progressive Global Energy & Natural Resources | ProSystems International B.V. | PWC | Q Qingdao Dacang Pipe Anticorrosion & Thermal Insulation Equipment Co,.Ltd | Qualified People B.V. | R Rabobank | RAD Torque Systems B.V. | Radial Software Group B.V. | RAEDER-VOGEL RAEDER-UND ROLLENFABRIK GMBH & CO. KG | Rambøll | Rapid Head Systems | Rebo Sign & Labeling Systems | REDWAVE | Resato International B.V. | Reym bv | RINGSPANN Benelux BV | Roxtec | Royal Dirkzwager | Royal HaskoningDHV | Rush Offshore Services bv | S Sagro Groep | Salzgitter Mannesmann Line Pipe GmbH | Salzgitter Mannesmann Precision GmbH | SBM Offshore | Scaldis Salvage & Marine Contractors N.V. | Scan-Sense AS | Scheepsbouw Nederland | SCHEUERLE Fahrzeugfabrik GmbH | Schlumberger | Schottel | Score (Europe) Limited | Score Diagnostics Limited | Seabed BV | Seacontractors | Seamar Services / Shipping b.v. | SEASCAPE BV SUBSEA TECHNOLOGY | Seaway Heavy Lifting | Seawork | Seazip Offshore Service B.V. | seepex GmbH | SENSY LOAD CELLS S.A. | Shell | Shenjiang Valve Co., Ltd. | Shipdock B.V. | Shipdock Harlingen B.V. | SHIPTRON MCS BV | Shipyard Reimerswaal | Siemens | Sledge Hammer Engineering International B.V. | SMST | SMT Systems BV | Snel Staal BV | Snijders Intelligent Automation | SOMA Training | Sonardyne International Ltd. | SpeedCast Maritime | SPT Offshore | SST Staalsnijtechniek B.V. | Star Oil Gas Power | STC-Group | STC-KNRM | Steel Blue | Steenbergen Produktietechniek B.V. | Steuer Nederland B.V. | Stokvis Trading B.V. | Sungo Valves Group Co.,Ltd | T T.A.L. Holland B.V. | Technip-EPG B.V. | Technotex | Temporary Works Design bv | The Economist | Thern winches & cranes | Theunissen Technical Trading | Thielco Steel Solutions Group | Tianjin FSK Flow Control Equipment Co,.Ltd | Tianjin Sianjia Flow Control Systems Co., Ltd | Tideland Signal Limited | Tideway Offshore Solutions | Timmerman Industrial Repairs B.V. | TKF (B.V. Twentsche Kabelfabriek) | TKI | TNO Maritime & Offshore | Tool Peaks Industries Limited | Toolspecial | TOP Offshore | TOS bv – Energy & Maritime Manpower | Tosec BV | Tranship B.V. | Trimergo International BV | Tri-Uni International BV | Tschudi Offshore & Towage | TU Delft | Tulip Oil | Twin Filter | U Ulstein Idea Equipment Solutions and Ulstein Sea of Solutions | Unique Lights Nederland B.V. | Unique Seaflex Ltd. | Unishore | United Offshore Services V.O.F. | Universal Foundation | V Valfacts B.V. | Van Beest B.V. | Van der Leun Installatiebouw BV | Van der Wal Beheer BV | Van Dyke Energy | Van Gool Lifting Equipment, Fall Arrest and Liftinggear Hire | Van Leusden B.V. | Van Oord Offshore BV | Van Oord Offshore Wind Projects B.V. | VandeGrijp Buizen BV | VAPO Hydraulics NV | VDS Offshore Construction Terminal Vlissingen | Vector Maintenance Management B.V. | Venko Groep | Verbrugge Terminals b.v. | Verebus Engineering | Versatec Energy B.V. | Victor Lighting | Voith Turbo B.V. | Von Arx Nederland / Steelcon B.V. | Vroon Offshore Services B.V. | VSMC | W Wageningen University | Wärtsilä | WEG Netherlands | Welding Company | Westland Logistiek BV | Wijngaarden VeiligGoed | Wilhelmsen Ships Service | Willis B.V. Energy and Maritime (Netherlands) | Winteb BV | Wood Mackenzie | Workfox - Seafox | WRS Group | WVT Industries nv | Y Yellow & Finch Publishers | Yokogawa Europe & Africa | Z Zeehaven IJmuiden N.V. | Zeeland Seaports | ZF Marine Krimpen b.v. | Zwatra Transport

8

Securing our energy future 80+ expert speakers discuss energy challenges and innovative solutions

The Offshore Energy conference program

On the second day of the event, as part

Panels

addressed developments in oil and gas

of the session “Minimizing environmental

Offshore Energy once again featured

E&P as well as wind, wave, and tidal

impacts of oil and gas activities”, Tinka

a high caliber “Industry Panel”, which this

advancements and their respective

Murk of Wageningen University gave a live

year discussed the industry’s growth

contributions to the future energy supply

demonstration by comparing the official

potential and drivers for, and impediments

and the challenges associated with this.

dispersant Corexit 9500 with a new

to, growth. The panel - including

adsorbent called ‘Ecotech’, which may

representatives from Shell, SBM Offshore,

The session “North Sea Exploration

prove to be a revolution in oil spill

Schlumberger, CB&I, and Siemens -

& Production” featured experts from

response. Other contributors to this

discussed projects of ever increasing scope

WoodMackenzie, EBN, GDF SUEZ E&P

session were IMARES on Arctic operations

and complexity, and how partnerships with

Nederland BV. These entities offered

and Royal HaskoningDHV on spatial

clients, subcontractors, and other service

insights into the future E&P potential,

pressure on the North Sea as a result

providers are shaped and reshaped.

put results, and expectations in a historic

of competing offshore activities.

perspective. And they also addressed

Organized in cooperation with the

New this year is the “Drilling & Dollars

ways to maximize oil and gas recovery.

Netherlands Africa Business Council,

Panel”. This panel brought together

The “State-of-the-art vessels for the offshore

the session “Opportunities in East-Africa”

financial experts from the upstream oil

industry” session included a presentation

presented opportunities in Mozambique,

and gas industry value chain, along with

about the Blue Orca stimulation vessel of

Tanzania, and Uganda in particular. This

private and public financial institutions, for

Baker Hughes, especially engineered for

session also identified the main challenges

a discussion on investment opportunities in

North Sea conditions. In the same session

for doing business. With contributions from

oil and gas, challenges in project financing,

GustoMSC provided details on the execution

the Netherlands Africa Business Council,

and reserve based lending. Not to mention

of a latest generation drillship project, the

Heerema Marine Contractors, Fugro,

the latest cutting edge financing solutions

Ocean Blackhawk.

and others.

against the backdrop of the financial crisis.

The session “Advances in wave and tidal

For the first time, the annual Offshore WIND

Another new panel was the “Human

energy”, with contributions from Bluewater

Installation and Maintenance Conference

Capital Panel”, which discussed the

Energy Services, Rambøll, Mojo Maritime

was held simultaneously with Offshore

solutions of individual companies as well

Ltd., and others offered insights into the

Energy. The conference brought together

as industry-wide initiatives and the role of

state of play in tidal generators, installation

experts from every part of the wind

government and education in promoting

vessels, wave energy demo projects, and the

industry to give their opinions and

the industry to students, in an effort to

bankability of wave and tidal test projects.

describe how they are working toward

deal with the pending big crew change.

bringing down the price per kWh.

Would you like to receive copies of the presentations or session reports? Please send an email to Femke Perlot-Hoogeveen at fh@navingo.com

The Offshore Energy Industry Panel 2013 featured Mark Bloemsma, CB&I, Horst Fischer, Siemens AG, Chris Stouthamer, Shell / ONEgas, Vincent Oomes, Deloitte, Alexander van Noort, Schlumberger, Kees Willemse, SBM Offshore, Ton Wouterse, Rabobank

9

Number of large projects and associated risks rapidly increasing in at the offshore industry

By Richard Brakenhoff, Industry Analyst and Ton Wouterse, Senior Banker Wholesale Maritime Industries, Rabobank

Market conditions at the global offshore

Australian dollar, but also by sharply higher

To sum up, there is a clear trend of taking

industry have been booming for quite some

labor costs (+29%), severe weather, and

risks. This could lead to the cancellation of

time. Whereas the capital expenditure

logistical challenges.

original plans, such as Browse in Australia.

(Capex) of the oil & gas industry amounted

See table 2: Original versus updated Capex

However, the world still needs more fossil

to USD 100bn in the year 2000, it jumped

budgets at large LNG projects in Australia

fuels, which will have to be explored in more and more difficult areas. To offset

to more than USD 600bn in 2012. As shown in table 1, the number of large oil & gas

Although Gorgon is a huge project – the

this trend, surveys show that adequately

projects, whereby the Capex budget

estimated cost overrun of USD 15bn, of

resourcing project teams is key, whereby

exceeds USD 1bn, quadrupled between

which 47% has to be taken by Chevron –

time should not be an issue. Therefore,

2001 and 2011. The complexity of these

it “only” accounts for 3% of the company’s

we believe that forming strong (human

large projects has increased as well,

market capitalization, i.e. Chevron will not

resources, finances) joint-ventures

because projects are more and more in

enter into financial difficulties because of

between the major parties involved (oil &

(ultra-) deepwater or in remote areas,

Gorgon. Major contractors at the Gorgon

gas companies and contractors), especially

such as in northwest Australia. As a result,

project are CB&I Kentz JV (CB&I, Kentz),

at the early stages of a project, is essential

the changes of keeping the original budget

Kellogg JV (KBR, Kellogg, Clough), Hyundai

to weigh the risks versus the benefits.

under control has decreased. According

HI, GE, and Leighton. The contract sizes

Regarding Australia, the oil & gas industry

to SBC “only” 10% of the large oil & gas

(>USD 1bn) are sometimes relatively limited

could not cope with so many large projects

projects faced a large (>50%) budget

compared with the market capitalizations,

in such a short time period. New mega

overrun in 1997, but this percentage

but several companies could be hit strong

projects could, in our view, be better

jumped to 16% in 2005 and to 28% in 2011.

when they are held financially responsible

postponed until the current big projects

See table 1 Growth number of large projects

for these cost overruns.

are completed, so that the labor market can return to a more normal situation.

A number of very large gas projects take Table 1: Growth numer of large projects

2001

2011

High demand for natural gas in Japan

E&P spend (USD bn)

150

550

and China stimulated the exploration of

Projects >USD 1bn

50

200

these fields, also boosted by the nuclear

Number of operators managing projects >USD 1bn

12

>40

disaster in Fukushima in 2011. The size

Source: Schlumberger Business Consulting (SBC)

place in Australia, as shown in table 2.

of these projects is huge because of the remote area, the high costs to construct LNG trains (Liquefied Natural Gas), and setting up a whole new infrastructure.

Whereas the main operator Chevron (47%

Table 2: Original versus updated Capex budgets at large LNG projects in Australia Project

Operator

Decision made

Production LNG m tons

Originally est. Estimated pro­ New est. Costs costs USD bn duction date USD bn

Gorgon

Chevron

Aug 2009

15.6

37.0

Curtis Island

BG Group

Oct 2010

8.5

Santos

Jan 2011

7.8

ConocoPh.

July 2011

Chg YoY

2014

52.0

41%

15.0

2014

20.0

33%

16.0

2015

18.5

16%

9.0

20.0

2016

24.7

24%

of the equity) estimated the investment in

Gladstone

Gorgon at USD 37bn in 2009, the company

APLNG

raised its estimate by 41% to USD 52bn at

Wheatstone

Chevron

Sep 2011

8.9

29.0

2016

29.0

0%

the end of 2012, which rise for one third

Ichthys

Inpex

Jan 2012

8.4

34.0

2016

34.0

0%

Browse

Woodside

2015

12.0

30.0

Postponed

45.0

50%

was caused by the appreciation of the

Source: Company websites

Safepack™ unveiled at Offshore Energy In the beginning of September 2013

Leon Jenner, Cummins Regional Sales

we were pleased to meet business

Cummins Europe and JB Safe Diesel

Manager Oil & Gas for Europe: “Offshore

contacts from The Netherlands and also

unveiled SafePack™, a brand new range

Energy has been an ideal platform for us to

from the other major European Oil & Gas

of Zone 2 compliant diesel power units,

further introduce our latest development

countries, such as the UK and Norway.”

specifically designed for use in hazardous

to the offshore and Oil & Gas market, but

areas. In these environments, a SafePack™

also to reinforce our local presence and

is typically applied to drive compressors,

capability in the marine market. Although

pumps, alternators, and transmissions.

the event is relatively new,

10

Offshore Gas Super Projects: back on the shelf?

The global natural gas market production is going through fundamental changes.

Four years ago, anyone proclaiming a role for the United States as a gas exporter would have been ridiculed.

Conventional wisdom said ‘gas reserves are depleting and prices will remain volatile’. Today, the abundance of shale gas reserves has nobody worrying about supply shortages any longer and prices only show a downward trend.

Peter Sanders, Strategy consultant, Deloitte

At Deloitte we asked ourselves to which

in Europe and Japan would be up to USD

they will result in a global rebalancing of

extent cheap shale gas, now trading below

3.3/boe cheaper than in the no-exports

gas flows that will reduce the appetite to

USD 25 per barrel of oil equivalent (boe)

scenario.

invest in offshore gas super projects.

oil & gas sector. To answer this question,

The main victims of these US gas exports

*”Exporting the American Renaissance:

we used Deloitte’s proprietary World Gas

will be the LNG projects in Australia,

Global impacts of LNG exports from the

Model, which helps to understand

Indonesia and Brunei. With costs over

United States”, Deloitte (January 2013)

volumes and prices per region*.

$70/boe these are already among the most

in the US, could also impact the offshore

expensive gas projects in the world. West

Read More:

In a world without US shale gas exports,

African LNG and North African and Russian

www.deloitte.nl/energy

the model suggests, prices in the US itself

natural gas exports will also be impacted.

will rise as more assets switch from oil and

With a negative price outlook and

coal to gas. Even so, prices will still remain

well-publicized costs overruns in Australia,

50% below the European and Japanese

a number of offshore mega projects have

levels of USD 60/boe. Consistently high

already been cancelled: Browse, Pluto

prices outside the US mean a doubling of

(Australia) and Shtokman (Russia). Given

LNG production by 2030. Offshore gas

the long development cycle, the required

output will help Australia to surpass Qatar

consensus among the partners, the

as the world’s largest LNG producer in the

involvement of many different parties

next few years.

(gas supply, liquefaction, marketing) and complex nature of final investment

To imagine what happens if US shale gas

decisions (contingent upon the solidity

is exported (e.g. through the new Kitimat

of the many agreements that underwrite

export terminal or the Sabine Pass LNG

the economic viability of the project)

facility), we modeled the impact of 6 billion

these offshore gas projects are expected

cubic feet per day (Bcfd) in US gas exports;

to suffer from significant delays.

this is less than 10 percent of US production.

As expected, prices in the US would go up,

Will offshore gas super projects be

while those in the rest of the world would

shelved again? No, Japan and China are

go down. But the effects are relatively

still hungry for gas and they are willing to

modest: gas in the US would become no

pay premium dollars to secure supply. But

more than USD 0.8/boe dearer and gas

when US shale gas exports do materialize, Vincent Oomes, Partner, Deloitte

11

AYOP pavilion great success AYOP (Amsterdam IJmuiden Offshore Port) can stand proud,

Davio: “It was all highly animated. I got a strong impression

especially if it’s up to Ron Davio. The Chairman looks back on

that the AYOP team did very well; with new contacts, but

Offshore Energy 2013; the exhibition where 27 of the 45 AYOP

also with existing contacts.” He went further and noted that

members operated jointly for the first time from a single stand.

it was completely gratifying to see that some of AYOP’s newest

And successfully at that! The open and inventive stand –

members were there, such as IPG (Industrial Pump Group

thirteen by six meters and surrounded by four meter high

Netherlands), MAIN, BK Group, and Willis. Willis even sponsored

towers, as if it were an offshore platform – was an absolute

the Happy Hour that took place in the pavilion on the first day.

magnet to anyone around it. A contributing factor to this interest was the centrally located pavilion, where many attendees could stop and enjoy a drink or snack while they networked.

Reservation Offshore Energy 2014

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