Offshore & Energy - NO.1-2011

Page 1

No. 01 >> 2011

Investment boom ahead

EkofiskPDO delivered

BRAZIL IS EVERY SUPPLIERS DREAM

WHO WILL AIM FOR 20 YEARS WITH STATOIL? >> EXPLORATION

>> RIG MARKET

>> SUBSEA

>> NORWEGIAN TECHNOLOGY ABROAD

www.offshore.no


Your future is on the line

Things are happening in CAN. More than ever, actually. We are busy, we are growing rapidly and we are in need of new employees: Multi-skilled technicians who want a career in an exciting and future-oriented company. Since 1993, we have been an innovative problem solver for oil and gas companies on the

Norwegian Continental Shelf – offering and providing solutions that are both safer and more cost-efficient than traditional solutions. Will our growth continue? Definitely. We CAN, and we will. Read more at www.can.no



THIS ISSUE

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42

Brazil is every suppliers dream For three out of every four partners in Norway’s Intsok, Brazil is a very important market, but there are 126 other nations in the world where it is thought easier to establish new business.

A british fairytale coming our way

56

The British market has fallen in recent years, but now there is a sharp rise in waiting. Projects for a hundred billion are going out in the market.

58

Investment boom ahead There were many plans in the billion size during this year's NOC conference, but supplier squeeze and increased costs could limit the investments.

Upcoming subsea boom down under Australia could become the next gold golden market for Norwegian suppliers.

72

Ekofisk-PDO delivered Operator ConocoPhillips has delivered its plans for revival of the aging North Sea Ekofisk field. Giant investments at Ekofisk are looming and the goal is to increase the recovery rate from 49.5 to 52 per cent.

10

INTO THE BARENTS SEA

12

GULLRIS COULD BE GOLDEN

21

REMARKABLE ROCKSOURCE ESTIMATES

29

ORDERING RIG NUMBER FOUR TO NORWAY

34

WHO WILL AIM FOR 20 YEARS WITH STATOIL?

40

EXPLORATION MAP

46

MORE THAN PIPES AND TUBES

54

WHAT'S TICKING ON THE NORWEGIAN SHELF?

64

GOLDEN EAGLE TO FLY WITH TWIN PLATFORMS

70

NPD CRITICIZES INDECISION

73

MMO GIANTS PLAN LISTING ON THE OSE

13 DRILLING FALLS NINE PER CENT ON UKCS 14 GIANTS DROP EXPLORATION ON THE NCS 16 SPARING THE TIME TO TALK 24 RIG COULD HALT EXPLORATION PLANS 26 THE RUSH FOR ACCOMMODATION RIGS 31 INVESTING BILLIONS IN DEEP WATER UNITS 32 VERY GOOD TIMES TO COME 38 THE ROAD TO BRAZIL 51 PROFESSOR EMIRATUS 62 PATHFINDER POINTS TO POTENTIAL PROJECTS 66 NO REACTION TO THE OLF WARNING 68 STATOIL DISAGREE WITH THE DIRECTOR OF PETROLEUM

4

Offshore & Energy MARCH 2011


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>> from the editor

LOSS OR SUSPENSION? Helge Lund's statement that the Gullfaks oil is not lost, but a case of delayed production, has no support in any thorough technical and economic analysis. Even the Norwegian oil minister does not know if the reserves are impaired and thus lost forever. Recently it was announced that Gullfaks production was down 40 per cent in December and January compared to November 2010. In a response Statoil CEO Helge Lund said that the company will have a reduced production of 30,000 barrels per day in 2011, but he underlined that “This is only deferred and not lost production". It is not uncommon on the Norwegian shelf that when you do not produce as planned, volumes are pushed back in time. But whether the oil is lost or not depends on many things, not least the economic life of the installation. The Gullfaks installations are up to 25 years old and require major modifications over time to preserve their technical integrity and functionality. If inflation continues at the rate it now seems, with an even tighter supplier market as a result of increased responsibilities, it is obviously difficult to create profitability from smaller targets. This definitely increases the risk that the abandoned Gullfaks oil can not be exploited in a profitable manner and is thus "lost."

In the Norwegian Parliament Oil Minister Terje Riis Johansen made the following remark: “Statoil has shut down some wells, while the owners are considering how to proceed with production from the field. It is not clear today if the challenges on Gullfaks will result in lower recovery from the field, or if we face a suspension of production." The country's oil minister and the formal owner of 67 percent of Statoil do not, in other words, know if the Gullfaks problems will result in a "lower recovery rate, or a postponement of the production."

"Whether the oil is lost or not depends on many things, not least the economic life of the installation."

It is therefore very surprising that both Helge Lund and Statoil E & P Norway boss Øystein Michelsen seem so sure that the reserves are still there to be taken out. To our knowledge there is no thorough technical and economic analysis to support their claim. Therefore a more appropriate description would have been that the reserves “as of today” is not written down, but postponed.

Seen in this light Lund and Michelsen show remarkable vision in being able to determine that the Gullfaks shutdown is merely a case of delayed production. As this is what the stock exchange will hear, it will probably remain Statoil's official stance until proven otherwise.

Theoretically, this could be right in the end but the profitability of such a project is at best uncertain.

Helge Keilen

The Gullfaks production loss is about big money, our estimates range between NOK 5-7 billion this year alone. As the Norwegian state owns

Head Office Trollhaugsmyra 15, 5353 Straume Switch: +47 56 31 40 20 Fax: +47 56 31 40 30 redaksjonen@offshore.no www.offshoremediagroup.com Editor in Chief Helge Keilen - hk@offshore.no News Editor Offshore&Energy: Stein Tjelta - st@offshore.no

6

collectively over 80 per cent of the Gullfaks field, the projected tax loss in 2011 will be in the range of NOK 6 billion.

Offshore & Energy MARCH 2011

Editor-in-Chief

Online Editor Offshore.no Stein Tjelta - st@offshore.no

Editorial offices Oslo, Bergen, Stavanger, London

UK Editor John Bradbury - jb@offshore247.com

Online publications • offshore247.com • English daily news coverage of the world’s oil and gas business. • www.offshore.no • Norwegian daily news coverage of the North Sea oil and gas business. • NewsByMail • www.offshore247/nbm

O&E Staff Writers Arild Gilja - ag@offshore.no John Økland - jo@offshore.no Elisabeth H. Kolstad - eko@offshore.no Glenn Stangeland - gs@offshore.no Managing Director: Erlend Keilen - ek@offshore.no Distribution 10.600 + online distribution, Offshore.no

Coverpage OLF/Tom Haga

Commercial offices Norway +47 56 31 40 20 International +47 22 83 83 68 UK - offshore247.com: +44 12 24 59 23 33 Subscription/Accounting redaksjonen@offshore.no Layout and design Mona Bruvik - mb@offshore.no Print Merkur-Trykk AS www.merkurtrykk.no


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>> exploration

Into the Barents Sea Increase in explorations wells on the NCS. text by: GLENN STANGELAND gs@offshore.no

Whilst the number of wells decreased last year to 40 wells compared to 65 exploration wells in 2009, 2011 is set to match the record year of 2009. About 60 wells have been scheduled so far.

Director of exploration, Sissel Eriksen at the NPD hopes the increased activity will result in a breakthrough in exploration off the Hammerfest Basin.

The increase is mainly due to an increase in Statoil's plans next year. In 2011 the company drilled ten wells, but according to Ă˜ystein Michelsen, director of exploration and production in Norway, the 2011 figure could be around 20-25 wells. So far, only five of these have been named.

"So far we have not been able to crack the code. We make discoveries, but the reservoir quality is not good enough. The challenge is to understand the geology of the area and develop new and better search models, "she said.

Barents Sea and appraisals Lundin and Wintershall want to know more about Avaldsnes, Maria and Grosbeak and will therefore drill appraisal wells.

North Sea most popular The companies still find the North Sea the most attractive area. Among the 42 wells which are specified in the licenses, 23 are located in the North Sea, 10 in the Norwegian Sea and nine in the Barents Sea.

The current exploration in the Barents Sea expands. A total of nine wells are planned in the Barents Sea in 2011.

10 Offshore & Energy MARCH 2011


Fransk åpning Det høres nok dristigere ut enn det er. Når GDF SUEZ E&P Norge overtar Gjøa, åpner de ikke bare en helt ny plattform, de åpner også en helt ny del av Nordsjøen. Dessuten er det også første gang selskapet er driftsoperatør på norsk kontinentalsokkel, og akkurat det kan høres dristig ut. Men når sant skal sies, er det alt annet enn det – GDF SUEZ er et av verdens største energiselskap. Som operatør for utbyggingen, har Statoil bistått GDF SUEZ E&P Norge med erfaring og ekspertise, slik nordmennene selv en gang fikk starthjelp av amerikanske oljeselskap. Samarbeid var en forutsetning for å lykkes da, og er det fortsatt. Gjøa-prosjektet er i det hele tatt tuftet på et unikt og verdensomspennende samarbeid. Fra planlegging til overlevering. Fra Statoil til GDF SUEZ. Kort sagt fra a til åpning. Vi gleder oss til fortsettelsen!

25. januar ble operatørskiftet og åpning av Gjøa-feltet markert. Utbyggingen av Gjøa- og Vega-feltene var det største prosjektet på norsk sokkel mens det pågikk. Det er investert rundt 40 milliarder kroner i feltene, som åpner et nytt område i den nordlige delen av Nordsjøen. Gjøa-feltet utvikles ved hjelp av en halvt nedsenkbar plattform, som også er i stand til å prosessere andre funn i området, i tillegg til Gjøa og Vega. Bruken av landbasert elektrisitet gjør dessuten at CO2-utslippene reduseres tilsvarende det årlige utslippet fra 100.000 biler.

Lisenspartnere:


>> exploration "We also have a considerable programme next year, both as operator and partner. This way, we hope to contribute to reducing the declining oil and gas production on the Norwegian continental shelf. This programme represents a continuing aggressive effort on our part with a total of 12 wells - about the same number of wells as we have had in recent years, "he said. Avaldsnes into Aldous? Det norske does not have a share in the largest oil discovery on the NCS in 2010, the Avaldsnes discovery, but the company believes the structure Lundin found extends into PL265, where the company has a 20 per cent share. Statoil will drill two wells on the Aldous prospect next year. More concentrated exploration Aker ASA has asked Det norske to change its exploration strategy on the Norwegian continental shelf and instead concentrate on specific areas.

Gullris could be golden

"It's quite simple, Det norske has drilled a number of wells without discoveries. Drilling wells is expensive, and in such a situation, any leader has to look within and learn from the results and adjust accordingly,"said CEO Øyvind Eriksen Aker in November. "It's a job we started early this year, and it is natural for Det norske to concentrate on some areas, but at the same time have an interested eye on the shelf, "says Anda. When it comes to Stirby results from, the results may come before Christmas according to the market.

Det norske's planned wells in 2011, where the company is operator: Skaugumsåsen (482) in the Norwegian Sea. Ulvetanna (356) in the North Sea.

Det norske thinks the BG-operated prospect could contain as much as 1.7 billion barrels of oil equivalent.

Kalveklumpen (414) in the North Sea. Storebjørn (450) in the North Sea. Steingeita (460) in the North Sea.

text by: GLENN STANGELAND gs@offshore.no Det norske's exploration programme for 2011 is offensive. The greatest anticipation is related to the BG-operated Gullris prospect which will be drilled northeast of Dalsnuten in the Norwegian Sea. Det norske is operating with an upside potential of between 700 and 1700 million barrels of oil equivalent on this prospect in PL522. "We do not want to comment on the partneroperated drilling plans, but naturally we keep an eye on these," head of communications Torgeir Anda in Det norske tells Offshore.no. "When

12 Offshore & Energy MARCH 2011

there's large volumes, there's also great uncertainty. Closer to existing infrastructure, the volumes are smaller, but the success rate is bigger." 12 wells In 2011, the company and operator plans to drill five wells, of which four are in the North Sea and one in the Norwegian Sea. In addition, the company also will drill new exploration wells together with its partners in the North Sea, Norwegian Sea and Barents Sea.

Planned partner-operated exploration wells in 2011: BG's Gullris (522) in the Norwegian Sea. Statoil's Krafla (035) in the North Sea. Total's Norvarg (535) in the Barents Sea. Eon's Breiflabb (416) in the North Sea. Statoil's Aldous Major (265) in the North Sea. (X2) Eni's Salina (533) in the Barents Sea.


OFFSHORE & ENERGY

Drilling falls nine per cent on UKCS There were a total of 71 exploration and appraisal wells drilled on the UKCS last year which indicated a 9% fall below that seen in 2009 when a total of 77 E&A wells were drilled. text by: JOHN BRADBURY jb@offshore.no These were the lowest drilling levels in the UK sector of the North Sea and elsewhere on the UKCS since 2003, according to an end of year report by Deloitte “The reduction of exploration and appraisal drilling seen in 2010 was created by a decrease of 26% in appraisal drilling when compared to the same period of 2009. By contrast exploration drilling on the UKCS increased by 17%,” Deloitte’s Petroleum Services group concluded. Turning to the fourth quarter last year there were 12 E&A well spuds - down 15% compared with fourth quarter 2009. “When compared to the third quarter of 2010, the number of wells spudded has fallen more markedly by 545,” Deloitte noted. Drilling was concentrated in the Southern North sea and Northern North Sea - with 33% and 25% of the wells respectively while the Moray Firth and Central North Sea saw 16% of all E&A wells in 2010. And the West of Shetlands region - long considered the future for finding new resources in UK waters - saw only 8% of the exploration activity in the fourth quarter Towards the end of last year Energy Minster Charles Hendry at the Department of Energy and Climate Change presided over the UK’s 26th

NYE IDEER BRINGER NORGE VIDERE

Seaward Licensing Round which resulted in a total of 144 licences being offered over 268 blocks. And a further 44 licences covering another 99 blocks are expected to be offered in future, in protected conservation areas. Drilling offshore Norway during 2010 saw 45 E&A wells, a 30% fall compared with 2009, although 2009 was a record year for drilling offshore Norway, so it was to be expected that the 2010 failed to equal that activity peak. Deloitte noted that Norway’s tax system played a big part in the drilling surge there in 2009, saying:” The exploration drilling tax incentives devised by the Norwegian government are wildly [widely] regarded as a driving force for this high level of drilling activity within a difficult global economy and the capital constraints being exercised by lenders.” Nine E&A wells were spudded offshore Norway in the fourth quarter last year - up 28% on the third quarter 2010, but a 43% fall on the fourth quarter 2009. Turning to licensing deal activity offshore Norway, the Deloitte report highlights a slow start and a slow finish but higher activity during the second and third quarters. Nevertheless deal-making and corporate activity was down 25% from 32 deals in 2009 to 24 in 2010. But

some of them were significant, including the merge of Det Norske with Aker Exploration. Offshore The Netherlands, 11 E&A wells were recorded, equal to the 2009 figure and three were in the fourth quarter, again equalling the number in 2009. Denmark’s offshore drilling tally was one exploration well and one appraisal, again, the same as 2009. Offshore Ireland the story was similar, with just one exploration well, compared with three E&A wells the previous year. Greenland saw four E&A wells during 2010, the first drilling there for a decade, and more are planned this year, also by Cairn Energy. Licensing in Greenland saw a surge with seven new offshore licences awarded to ConocoPhillips, Shell, Statoil, GDF Suez, Cairn Energy, Maersk Oil, Dong and Nunaoil in the Baffin Bay area, covering 70,768 square kilometres, taking the licensed acreage offshore Greenland to around 200,000 sq. km. And offshore from the Faroes Islands, one well was spudded, the first since 2007, and operated by Eni, which encountered hydrocarbons in sands dispersed within volcanic rocks.

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MARCH 2011 Offshore & Energy 13


>> exploration

The fact that the four giants won't drill on the NCS is another proof of the shelf's maturity. Major projects are missing, and that causes these companies to lose interest.

The four companies plan one, maximum two exploration wells in total in 2011. In comparison, the quartet drilled six exploration and appraisal wells last year.

"This is a serious development. The fact that these giants have been sitting on the edge of the Norwegian shelf and simply stuck to familiar areas and their producing fields for several years, is not a good starting point for the future. This will only leave Statoil and the dwarves on the shelf. NCS needs the skills these companies have," Ramm says.

Figures Offshore.no has collected from all operators show that around 60 exploration wells have been planned on the Norwegian continental shelf in 2011.

"We are not planning to drill any exploration wells on the Norwegian shelf in 2011," head of information in BP, Jan Erik Geirmo says. "Most of the drilling will be on existing fields in 2011. There will not be more than one exploration well, "said head of information Kristin Kragseth in ExxonMobil.

14 Offshore & Energy MARCH 2011

New areas are the future Shell which does not plan to drill on the shelf in 2011, accounted for two of the biggest disappointments of last year. Dalsnuten was dry and the Gro appraisal a disappointment. The company will decide on a further appraisal of the Gro discovery by summer. "The Dalsnuten result emphasises the importance of opening new areas. We will continue to evaluate opportunities on the Norwegian continental shelf, but we believe that the future of oil and gas industry is in new and


OFFSHORE & ENERGY not open areas," information officer, said Terje Jonassen in Norske Shell. Could disappear Ramm believes there is a danger that some of these companies could be lost for the Norwegian petroleum industry. "They are patient. But once they leave, it is difficult to get them back. So we must be careful. It is becoming time-critical, but they will probably stick for the next elections, "said Ramm to Offshore.no. - What is needed to rekindle their spark? "Companies are willing if the conditions are right. If we want to explore new areas, particularly in the Barents Sea, these companies must be involved. Opening of new areas, favorable tax policies and strategies for increased diversity are very important for these companies. They want major projects where they can use their expertise, and there are not many of them on the Norwegian continental shelf." Jan Mayen is not quality land "This is a clear signal that the land in Norway is not particularly attractive to these companies compared to other opportunities elsewhere, "said Ketil Solvik-Olsen, energy policy spokesman of the Progress Party, to Offshore. no. "And when we have a Minister of Petroleum and Energy who says that Jan Mayen represent interesting opportunities for Norwegian oil companies, it shows how little he actually grasps. We need to start talking about the quality of the advertised area, not quantity." He does not fear that companies will pull out of Norway, but stresses the importance that they get a more active role on the shelf. "Most are in active licenses and are interested in maximising their value here."

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MARCH 2011 Offshore & Energy 15


>> exploration

Sparing the time to talk Samir Brikho can only spare a couple of hours: He’s clearly a busy man with a global empire to run. text by: JOHN BRADBURY jb@offshore.no Every inch the global businessman, he bustles into the boardroom on the sixth floor of Amec’s concrete and steel central London headquarters to talk for a while about what’s coming in Aberdeen in September at the Offshore Europe conference and exhibition. Only he doesn’t just do that...

production storage and offloading units in the next few years. Also presentations will focus on Brazil’s deepwater industry. There will be a showcase for unmanned underwater vehicles, and sessions dedicated to deepwater exploration and knowledge-sharing hosted by EAGE and SPE.

Instead, in a rapid delivery style, he talks about global issues in the energy industry, safety, and a raft of other energy-related subjects well within his grasp. Brikho, chief executive of the global engineering and project management group, was speaking at the company’s central London headquarters, as the chairman of the executive committee for the Offshore Europe 2011 conference and exhibition.

Talking tax “The biggest challenge for operators in the North Sea is the tax issue, with a 50% flat tax rate,” Brikho declared during a meeting with industry journalists. But he acknowledged that other regions have higher rates: “For other places it is up to 90%,” he noted. “But I believe this is an opportunity. The more lucrative you make it, the more attractive you make it,” Brikho said.

Amec’s chief executive was talking after the submission deadline closed for papers for the SPE Offshore Europe conference and exhibition which takes place in Aberdeen in September organised by Reed Exhibitions with the Society of Petroleum Engineers, based on the theme of “…securing safe, smart, sustainable supply.” Brikho is the overall conference chairman this year and outlined the range of subjects which are due to be tackled at 0E 2011, which include facilities and infrastructure; new well technology; reservoir management, HSE, exploration and the potential for an upstream industry contribution to carbon reduction. Homing in on that safety theme, Brikho is firm in his views about the Deepwater Horizon disaster: “That was a wake up call for the whole industry,” he declared. “We are stupid if we do not take this as an opportunity to improve. From an engineering and construction company perspective, we are not looking for who is responsible in this – that is not our job. We have to see how we are able to work better and see that everything is being learned and implemented.” One of the features of this year’s exhibition is a deepwater zone which aims to highlight the latest deepwater technologies, and a Brazil pavilion is bound to be a key attraction as the country has emerged as one of the most desirable markets for petroleum related production and services after a series of giant deepwater discoveries, which in turn have led to a demand for no less than 13 new floating

16 Offshore & Energy MARCH 2011

Chancellor George Osborne is said to be “listening and understanding” to what the UK offshore sector has to say about the tax regime, as the offshore industry seeks to eke out the remaining reserves of around 30 Billion barrels of oil equivalent from the UK sector of the North Sea. Asked about the government’s view on offshore taxation, Brikho, said: “George Osborne is very listening and understanding. He is very sensitive and alert to the situation.” Prospects Pressed about the prospects for any UK offshore tax changes, Brikho added: “I cannot expect, I would hope,” he answered diplomatically. However, for the contracting community, the biggest issue in the North Sea is different. : “It is about establishing sustainable and reliable operations,” Brikho declared. For Brikho, future challenges for the industry involve safeguarding the environment better than we do now, and tackling some of the industry’s supply chain issues related to the introduction of new technology: “Nobody wants to be the first one,” he says, so more industry collaboration is needed, Appointed chief executive at Amec in 2006, Brikho joined ABB in 1983 and in 2000 became head of Alstom Power. Between 2003 and 2006 he was chief executive and then later chairman of ABB Lummus Global.

Apart from his role as chairman of Offshore Europe 2011, Brikho has chaired a World Economic Forum engineering and construction board. He has led a government task force aimed at demonstrating the UK’s expertise in energy to the world, and in February 2010 was appointed by the then Prime Minister Gordon Brown as a UK business ambassador. And don’t think he can’t get his message across: He’s a fluent speaker in Swedish, Arabic, German and French, and, oh yes, English too. Offshore Europe 2011 takes place at the Aberdeen Exhibition and conference centre from 6 to September 2011. To find out more go to: http://www.offshore-europe.co.uk


A PART OF IT

w w w . o ff s h o re d a y s . co m


ALREADY OVER A PART OF IT

EXHIBITORS OTD 2011 IN STAVANGER AAK Group AS

Bring Logistics AS

Ferguson Norge AS

Inspecta AS

ABB AS

Bsafe AS

Fluid Control AS

Inventas Produktdesign AS

Acapo AS

Busch Vakuumteknikk AS

FMC Technologies AS

IOS InterMoor AS

ACO

CAN AS

Folk AS

James Walker

AGA AS

CAN Technology AS

Forus Elektro Automatikk AS

Jergo AB

Ahlsell Oil & Gas AS

Castrol Offshore

Franzefoss Gjenvinning AS

JSC Hampidjan Baltic

Aibel AS

Cavotec Norge AS

Fuglesangs Ltd. AS

K.Lund Offshore

Air Liquide Offshore AS

CERTEX NORGE AS

Fugro Survey AS

KAEFER ENERGY

Aker Solutions/Aker Subsea AS

Concept Steels Ltd

Furmanite as

KNM hydraulikk as

Alf I Larsen AS

Consult Supply AS

Gassco

Kolberg Caspary Lautom AS

Alfsen & Gunderson

Cosalt Offshore Norway

Glynwed

Kongshavn Industri AS

Alvøen AS

COSL Drilling Europe AS

Goodtech

Langset as

Amitec AS

Dataplan Group AS

GPA Flowsystem

Leica Geosystems AS

Apply Capnor AS

Dell A/S

Hexagon Metrology Services Ltd

Lekang Maskin AS

Apply Sørco AS

Depro as

Hinna Base AS

LEMO Norway AS

Arvid Nilsson Norge AS

DGS as

Hitec Products AS

Lewa AS

ASK Safety AS

Drammen Yard AS

Holberg Travel AS

Logi Trans

Astrup AS

E Innovation

Hydraulikk Competance AS

Lönne Scandinavia AS

Autronica Fire & Security AS

EDR

Hyptech AS

MacArtney Norge AS

AxFlow as

Eide Marine Tech AS

Hytech Personnel AS

MacGregor NOR AS

Balseal Engineering Europe

Elteco AS

Hytorc Norge AS

Maritim Service AS

Bandak

EMS Konsult

IK Stavanger as

Maritime Colours AS

BARTEC TECHNOR AS

Endress+Hauser as

Imenco AS

Marwin Mekaniske

Becher Maskinering

EPIM AS (EqHub)

InControl AS

Maskin K Lund

BIS Industrier

Euro Offshore AS

Ingeniør Compagniet AS

Mechanica AS

Bredengen

Falck Nutec AS

Innovar Solutions

MERA AS


210 EXHIBITORS NORWAY’S LARGEST ANNUAL OIL EXHIBITION The Norwegian offshore market is the world’s largest, even larger than Brazil and the Middle East. Each year until 2015 some US$ 35 billion will be invested in the Norwegian Continental Shelf. With its geographic proximity this should be of interest for suppliers. Every second year the world’s oil industry gathers to ONS in Stavanger, which in 2010 had 1.200 exhibitors. In 2011 Norwegian oil industry will gather once more in Stavanger, this time for the annual Offshore Technology Days which is Norway’s largest annual oil and gas exhibition. OTD is focusing solely on the Norwegian Continental Shelf under the motto:

WE ARE THE NORWEGIAN CONTINENTAL SHELF Facts about Offshore Technology Days: •

OTD was started in 2001 and is Norway’s largest annual oil and gas exhibition.

220-250 exhibitors and a sell-out out the last four years.

Between 10.000-14.000 oil professionals visit the exhibition.

With only two exhibition halls even small exhibitors will be noticed.

The exhibition is actively marketed through www.offshore.no, Scandinavia’s largest petroleum website with up to 19.500 readers every day.

All exhibitors are invited to a great OctoberFest, Icebreaker and AfterParty.

OTD is arranged the same place as ONS and with the same technical arranger.

Primo March 210 stands (85 % of total capacity) is sold.

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Module Solutions & Systems

Otto Olsen

SEC

Torgy Mek. Industri

Mongstadbase

Parker Hannifin

Sepro Technology

Trac ID Systems

Multconsult

Parker Hannifin - UTESTAND

ShoreConnection international

Tranberg

Multicontrol

Pepperl+Fuchs

SI-KA-TEC GmbH engineering coating

Trelleborg Offshore Norway

Mundal Subsea

Phoenix Contract

SIMEX

Trio Oiltec Services

National Instruments Norge

Phoenix Trading

SMB Odda

Tyco Valves & Controls Norway

NCA

Pinovo

SOLBERG & ANDERSEN

Umoe Schat Harding Services

NECON

PMC Servi

Solid Vedlikehold

Veolia Miljø

Norgren

Pon Power Scandinavia

SoluDyne

Vestpak

Norske Backer

Promineo

sp-tools

Vestteknikk

Norske Ventiler

Proserv Norge

Stangeland Glassfiber Produkter

VICTORIA

Norwegian Piping

Prosessmetall

staubo elektro-maskin

Viking Moorings

Nosefo

Pump Supply

Stokvis Tapes Norway

Vink Norway

NSE Gruppen

Pump Tech

Strukturplast

VisCo

NTOS

Q-STAR ENERGY

Sub Sea Services

Wago Norge

Nurmi Cylinders OY

Quickflange Norway

Subsea 7

Wärtsila Norway

Oceaneering

R. Teige Elektro

Subsea Technology Group

Watech

Odda Plast

RadøyGruppen

Sulzer Pumps Norway

Well Partner

Odfjell Drilling Technology

Real Marine

SVAFAS

West Contractors

OEM AUTOMATIC

Red Rooster

Svenska Statoil AB, Lubricants

Westsoft

Olympus

Rufo Transportkasser

Sverdrup Hanssen Spesialstål

XAIT

OME /KOSO Kent Introl

Safran Software Solutions

T Bruvik

OMNI

Scan Tech

Teamtrade

Onix

SCANDINAVIAN FITTINGS & FLANGES

Teksal

OPTIPUMP

Scanmatic

TESS

Orange Offshore

Seal-Jet

TOOLS VEST


EXHIBITION ONLY 15% AVAILABLE previous ones in Bergen.

In the beginning of March 2011, more than 210 exhibitors had booked a stand on the Offshore Technology Days (OTD) in Stavanger, October 19-20 2011.

Tickets to the legendary Octoberfest are also sold at an unprecedented race.

This represents 85 per cent of available stand capacity in Stavanger Forum, and is a sure sign that the 11th OTD exhibition will be a sell-out, like the

You may find additional information on www.offshoredays.com

A PART OF IT

EXHIBITION OPPORTUNITIES If your company is considering beeing part of the exhibition, please contact us to make reservations for a stand. Contact: Offshore Media Group +47 56 31 40 20 salg@offshore.no

OVERALL PROGRAMME TUESDAY 18. OCT.

CONFERENCE

Main sponsor:

Octoberfest sponsor:

OTD Icebreaker

OTD sponsors:

OTD lounge sponsor:

THURSDAY 20. OCT.

OTD Subsea Seminars OTD Conference OTD Students

OTD Subsea Seminars OTD Conference OTD Students

OTD Exhibition

EXHIBITION

SOCIAL

WEDNESDAY 19. OCT.

Arrangør:

OTD Octoberfest

OTD Concert


OFFSHORE & ENERGY

Remarkable Rocksource estimates

The oil company’s stock value rose 28 per cent in two days after a very optimistic drilling prospect estimate. text by: STEIN TJELTA st@offshore.no

The company believes it has a very accurate exploration technology. Earlier last year, Rocksource announced a sensational high probability of discovery on the Norvarg prospect , which Total E & P Norway was to drill in the Norwegian Barents Sea with the semi-submersible West Phoenix. Rocksource, which has a 20 per cent share in the prospect, told the market they saw a success probability of 50 percent. In comparison, the success rate over the last few years has risen to around 50 per cent in mature areas in the North Sea. Also for comparison, so far it has not been customary to expect a higher chance of success than 10- 20 percent in either the Norwegian Sea or the Barents Sea. The market reacted to the Norvarg message that was sent out 11 October last year by sending the stock price up 28 percent in two days. - EM analysis provided additional information 1. Per Anders Muri, vice president of Rocksource, told Offshore & Energy that it is the company's own electromagnetic technology that enables the company to estimate the chance of success better than other operators. O&E: You operate with a much higher chance of success than other oil companies. How can you do this? “Based on traditional seismic interpretation and geological work, we operate normally with the discovery probabilities in line with our partners. It is only when we integrate the EM analysis and conclude that our findings are positive that probabilities increase. However, it is important to But on Norvarg EM analysis gave valuable additional information which resulted in the discovery probability which was raised to about 50 percent. This was also the case on Heilo - another Barents prospect, which we will test next year,” said Muri. High estimate of Heilo The company GDF Suez is the operator of Heilo, which will be drilled next year with the rig Aker Barents. Also here Rocksource has a stake of 20 percent, and here Rocksource estimates the chance of success of 50 percent or more, while the operator does not want to talk about the perceived success rate. Oslo stock exchange comments: According to the Oslo Stock Exchange, it is the companies themselves that define what information they convey to the market. Rocksource recently announced to the market that the chance of success on the prospect Norvarg was at 50 percent. This is far above what other oil companies reckon to be the chance of success. How does the Oslo Stock Exchange react? “This is the company's own assessment, and this is also evident in their

announcement. We have no reason to doubt this assessment,” said Per Eikrem, communications director at the Oslo Stock Exchange, told Offshore & Energy. To be or not, this year “The main business idea for Rocksource is to use the interpretation of electromagnetic (EM) data in addition to conventional seismic surveys in the exploration work. This they think can opt out many less promising prospects and point the exploration drilling to the prospects with the highest chance of discoveries. This remains to be seen, and the drilling results later this year will tell the market just how successful this technology is, Eikrem adds. Some statistics So far a total of 80 wells have been drilled about in the Barents Sea, and in 2008 six wells discovered hydrocarbons, i.e. well over 50 percent success rate. Unfortunately, there were no commercial discoveries, and Sissel Eriksen exploration director in the NPD,, recently told Offshore&Energy that we still have not cracked the code in parts of the Barents Sea. “So far we have not been able to crack this code. We make discoveries, but the reservoir quality is not good enough. The challenge is to understand the geology of the area and this understanding to develop new and better plays,” she said.

MARCH 2011 Offshore & Energy 21


>> rig market

rigs under construction

OPERATOR

RIG NAME

DESIGN

BUILDER

COUNTRY OF BUILD

DELIVERY

W.d. D.d. in feet Feet

JACK UPS Asia Offshore Drilling Ltd.

Asia Offshore Rig 1

KFELS B Class

KFELS

Singapore

2012

350

30 000

Asia Offshore Drilling Ltd.

Asia Offshore Rig 2

KFELS B Class

KFELS

Singapore

2013

350

30 000

Atwood Oceanics

Atwood Mako

Pacific Class 400

PPL Shipyard

Singapore

sep-12

400

30 000

Atwood Oceanics

Atwood Manta

Pacific Class 400

PPL Shipyard

Singapore

des-12

400

30 000

Atwood Oceanics

Atwood Orca

Pacific Class 400

PPL Shipyard

Singapore

juni-13

400

30 000

Clearwater Capital Partners LLC

Clearwater jackup TBN 1

KFELS B Class

KFELS

Singapore

1Q - 2013

400

30 000

Clearwater Capital Partners LLC

Clearwater jackup TBN 2

KFELS B Class

KFELS

Singapore

2Q - 2013

400

30 000

Egyptian Offshore

El Qaher II

Baker Marine Services Pacific Class 375

PPL Shipyard

Singapore

2011

375

30 000 40 000

ENSCO

ENSCO jackup TBN 1

KFELS Super A

KFELS

Singapore

2Q-2013

400

ENSCO

ENSCO jackup TBN 2

KFELS Super A

KFELS

Singapore

4Q-2013

400

40 000

Essar Oilfield Services

Essar Jackup TBN 1

F & G JU 2000 A

ABG Shipyard

India

2011

350

30 000

Essar Oilfield Services

Essar Jackup TBN 2

F & G JU 2000 A

ABG Shipyard

India

2011

450

30 000

Eurasia Drilling Company

Eurasia jackup TBN 1

LeTourneau Super 116E

Lamprell

U.A.E.

Q4 - 2012

350

30 000

Great Offshore

Great Offshore V351

LeTourneau 116-E

Bharati Shipyard

India

2011

350

30 000

Greatship Global

Greatship jackup TBN 1

LeTourneau Super 116E

Lamprell

U.A.E.

4Q -2011

350

30 000

Hercules Offshore

Discovery Offshore jackup TBN 1

KFELS Super A Class

KFELS

Singapore

1Q - 2013

400

35 000

Hercules Offshore

Discovery Offshore jackup TBN 2

KFELS Super A Class

KFELS

Singapore

2Q - 2013

400

35 000

Jasper Investments Ltd.

Jasper Jackup TBN 1

KFELS B Class

KFELS

Singapore

nov-12

400

30 000

M/S Drilling & Offshore pte Ltd.

M/S Drilling Jackup TBN 1

JU-2000A-01

ABG Shipyard

India

2014

350

30 000

M/S Drilling & Offshore pte Ltd.

M/S Drilling Jackup TBN 2

JU-2000A-01

ABG Shipyard

India

2014

350

30 000

Maersk Drilling

Maersk jackup TBN 1

Gusto MSC CJ-70-150MD - enhanced

KFELS

Singapore

2013

150

40 000 40 000

Maersk Drilling

Maersk jackup TBN 2

Gusto MSC CJ-70-150MD - enhanced

KFELS

Singapore

2014

150

Maritime Industrial Services

MIS Jackup (Hull 108)

Friede & Goldman F&G Super M2

UAE shipyard

U.A.E.

2011

300

30 000

MenaDrill

MenaDrill Hercules II

F&G Super M2

MIS Shipyard

U.A.E.

2011

300

30 000

F&G Super M2

Yantai Raffles

Kina

4Q -2011

300

30 000

Mosvold Drilling

MEJU Jackup TBN 1

Friede & Goldman F&G Super M2

UAE shipyard

U.A.E.

2011

300

30 000

National Drilling

NDC jackup TBN 1

LeTourneau Super 116E

Lamprell

U.A.E.

2012

200

30 000

Momentum Eng.

National Drilling

NDC jackup TBN 2

LeTourneau Super 116E

Lamprell

U.A.E.

2012

200

30 000

Noble Drilling

Noble Jackup I - new

F&G JU-3000N

Jurong Shipyard

Singapore

2012

400

30 000

Noble Drilling

Noble Jackup II - new

F&G JU-3000N

Jurong Shipyard

Singapore

2013

400

30 000

Odebrecht

P-59

LeTourneau Super 116E

Rio Paraguacu

Brasil

juni-11

350

30 000

Odebrecht

P-60

LeTourneau Super 116E

Rio Paraguacu

Brasil

okt-11

350

30 000

PetroVietnam

PetroVietnam Jackup TBN 1

LeTourneau Super 116E

PV Shipyard

Vietnam

2012

300

30 000

Prospector Offshore

Prospector Rig 1

F&G JU2000E

DSIOC

Kina

4Q - 2012

400

35 000

Prospector Offshore

Prospector Rig 2

F&G JU2000E

DSIOC

Kina

1Q -2013

400

35 000

Rowan Companies

Rowan EXL IV

LeTourneau Super 116E

Keppel FELS

Singapore

2012

350

35 000

Rowan Companies

Rowan Norway

KFELS N Class

Keppel FELS

Singapore

2011

400

35 000

Rowan Companies

Joe Douglas

LeTourneau LeTourneau 240C

LeTourneau Shipyard

USA

2011

375

35 000

SAAG Drilling

SAAG Jackup TBN 1

MSC CJ46-X100D

Labuan

Malaysia

2011

375

30 000

Saudi Aramco

Saudi Aramco TBN 1

KFELS Super B Class

Keppel FELS

Singapore

2012

200

20 000

Seadrill

West Telesto

Friede & Goldman JU2000E

Dalian Shipyard

Kina

4Q 2012

400

30 000

Seadrill

West Oberon

Friede & Goldman JU2000E

Dalian Shipyard

Kina

1Q 2013

400

30 000

Seadrill

West Castor

Friede & Goldman JU2000E

Jorung Shipyard

Singapore

4Q 2012

400

30 000

Seadrill

West Tucana

Friede & Goldman JU2000E

Jorung Shipyard

Singapore

1Q 2013

400

30 000

Seadrill

West Elara

Gusto MSC CJ70-X150A

Jurong Shipyard

Singapore

2011

450

40 000

Shanghai Offshore

Kan Tan 6

Pacific Class 375

PPL Shipyard

Singapore

2011

375

30 000

Standard Drilling Ltd

Standard Drilling Ltd TBN 1

KFELS B Class

KFELS

Singapore

Q2 - 2012

400

30 000

Thule Drilling

Thule Force

F&G Super M2

QGM Shipyard

U.A.E.

2011

300

30 000

Thule Drilling

Thule Energy

F&G Super M2

QGM Shipyard

U.A.E.

2011

300

30 000

Transocean Ltd.

Transocean TBN 1

KFELS super B Class

KFELS

Singapore

1Q - 2013

350

40 000

Transocean Ltd.

Transocean TBN 2

KFELS super B Class

KFELS

Singapore

3Q - 2013

350

40 000

Transocean Ltd.

Transocean Honor

Pacific Class 400

PPL Shipyard

Singapore

4Q -2011

400

30 000

Yantai Raffles

Yantai Raffles TBN 2

F&G Super M2

CIMC Raffles

Singapore

2011

300

30 000

Yantai Raffles

Yantai Raffles TBN 3

F&G Super M2

CIMC Raffles

Singapore

2011

300

30 000

Atwood Oceanics

Atwood Osprey

Friede & Goldman F&G Ex-D Millennium

Jurong Shipyard

Singapore

2011

8 200

32 000

Atwood Oceanics

Atwood Condor

Friede & Goldman F&G Ex-D Millennium

Jurong Shipyard

Singapore

2012

10 000

40 000

China Oilfield Services

COSLInnovator

GM 4000

Yantai Raffles

Kina

2011

2 500

25 000

China Oilfield Services

COSLPromotor

GM 4000

Yantai Raffles

Kina

2012

2 500

25 000

SEMI-SUBMERSIBLES

22 Offshore & Energy MARCH 2011


OPERATOR

RIG NAME

DESIGN

BUILDER

COUNTRY OF BUILD

DELIVERY

W.d in feet

D. d. in feet

Delba Perf.

Delba III

Gusto MSC TDS 2500

Abu Dhabi shipyard

India

2011

8 000

30 000

Delba Perf.

Delba IV

Gusto MSC TDS 2500

Abu Dhabi shipyard

India

2013

9 000

25 000

Delba Perf.

Delba V

Friede & Goldman

Samsung

Korea

2012

7 800

25 000

Delba Perf.

Delba VI

MSC TDS 2000

Samsung

Korea

2012

7 800

25 000

ENSCO

ENSCO 8504

Dynamically Positioned DP-2

KFELS

Singapore

2011

8 500

35 000

ENSCO

ENSCO 8505

Dynamically Positioned DP-2

KFELS

Singapore

2012

8 500

35 000

ENSCO

ENSCO 8506

Dynamically Positioned DP-2

KFELS

Singapore

2012

8 500

35 000

Gazflot

Severnoye Siyanie

Moss Maritime CS-50

Samsung

Korea

2011

10 000

24 000

Gazflot

Polyarnaya Zvezda

Moss Maritime CS-50

Samsung

Korea

2011

10 000

24 000

Industrial Perforadora de Campeche

Bicentenario

Gotaverken GVA-7500

Daewoo

Korea

2011

10 000

40 000

Island Offshore

Island Innovator

GM4000-WI

Cosco Shipyard

Kina

2012

10 000

26 000

Odebrecht

Odebrecht Semisub TBN 1 -

Daewoo

Korea

2013

10 000

-

Perf. da Campecha

La Muralla IV

Gotaverken GVA-7500

Daewoo Shipyard

Korea

2011

10 000

40 000

Petroserv SA

SSV Catarina

Gotaverken GVA 7500

DSME

Korea

2012

10 000

35 000

Queiroz Galvao Oleo e Gas S.A.

Alpha Star

MSC Gusto DSS-38, DP2

Keppel FELS

Singapore

2011

9 000

25 000

Saipem

Scarabeo 8

Moss CS 50 MkII

Severodvinsk Yard

Russland

2011

9 000

35 000

Schahin

Amazonia

F&G Ex-D

Yantai Raffles

Kina

2011

8 000

25 000

Seadrill

West Capricorn

F&G Ex-D

Jurong Shipyard

Singapore

2011

7 500

35 000

Seadrill

West Jaya

KFELS SSDT3600E-GOM-C42

Keppel FELS

Singapore

2011

6 500

30 000

Seadrill

Seadragon II

Moss Maritime CS50 Mk II

Jurong Shipyard

Singapore

2011

10 000

35 000

Seadrill Ltd

West Leo(SD 2)

CS50 MkII

Jurong shipyard

Singapore

4Q - 2011

10 000

35 000

Seadrill Ltd

West Pegasus(SD 1)

CS50 MkII

Jurong shipyard

Singapore

2011

10 000

35 000

Sevan Drilling

Sevan Driller II

Sevan 650

Cosco Nantong

Kina

2012

12 500

30 000

Sevan Drilling

Sevan Driller III

Sevan 650

Cosco Nantong

Kina

2012

10 000

30 000

Songa Offshore

Songa Eclipse

F&G Ex-D Millennium

Jurong Shipyard

Singapore

2011

10 000

40 000

DRILL SHIPS Aker drilling

TBN 1

DSME Ultra Deepwater Drillship

Daewoo Shipbuilding

Korea

okt-13

12 000

40 000

Aker drilling

TBN 2

DSME Ultra Deepwater Drillship

Daewoo Shipbuilding

Korea

des-13

12 000

40 000

Atwood Oceanics

Atwood Advantage

-

South Korea Shipyard Sør Korea

2013

12 000

40 000

Diamond Offshore

Ocean BlackHawk

Hyundai

Korea

2Q - 2013

12 000

35 000

Diamond Offshore

Ocean BlackHornet

Hyundai

Korea

4Q - 2013

12 000

35 000

Etesco

Etesco VIII

S10000E

Samsung

Korea

mars 12

10 000

35 000

Noble Corporation

Noble TBN

Gusto P10000

Hyundai

Korea

2Q - 2014

12 000

40 000

Noble Drilling

Noble Bully I

Gusto PRD12000

Gusto Eng./Keppel

Singapore

2011

12 000

40 000

Noble Drilling

Noble Bully II

Gusto PRD12000

Gusto Eng./Keppel

Singapore

2011

12 000

40 000

Noble Drilling

Noble DS TBN 1

Gusto P10000

Hyundai

Korea

2Q - 2013

12 000

40 000

Noble Drilling

Noble DS TBN 2

Gusto P10000

Hyundai

Korea

4Q - 2013

12 000

40 000

Noble Drilling

Noble Globetrotter I

Globetrotter Class

STX Shipyard

Kina

2011

10 000

40 000

Noble Drilling

Noble Globetrotter II

Globetrotter Class

STX Shipyard

Kina

2013

10 000

40 000

Ocean Rig/Dryships

Ocean Rig Mykonos

Saipem 10000 design

Samsung

Korea

sep-11

10 000

35 000

Ocean Rig/Dryships

Ocean Rig Poseidon

Saipem 10000 design

Samsung

Korea

juli-11

10 000

35 000

Ocean Rig/Dryships

Ocean Rig Olympia

Saipem 10000 design

Samsung

Korea

mars-11

10 000

35 000

Odebrecht

Norbe VIII

DSME 10000

Daewoo

Korea

2011

10 000

35 000

Odebrecht

Norbe IX

DSME 10000

Daewoo

Korea

2011

10 000

35 000

Odebrecht

Norbe X

DSME 10000

Daewoo

Korea

2011

10 000

35 000

Odebrecht

Norbe XI

DSME 10000

Daewoo

Korea

2012

10 000

35 000

Odebrecht

Odebrecht Drillship TBN 1

Daewoo

Korea

2013

10 000

Odfjell Drilling/Metrostar

Metro I

Gusto Engineering Gusto P10000

Hyundai/Gusto

Korea

2011

10 000

40 000

Odfjell Drilling/Metrostar

Metro II

Gusto Engineering Gusto P10000

Hyundai/Gusto

Korea

2011

10 000

40 000

Pacific Drilling Services Inc.

Pacific Mistral

Samsung 10000 Double Hull

Samsung

Korea

mai-11

10 000

35 000

Pacific Drilling Services Inc.

Pacific Santa Ana

Samsung 12000 Double Hull

Samsung

Korea

juli-11

10 000

35 000

Pacific Drilling Services Inc.

Pacific Scirocco

Samsung 12000 Double Hull

Samsung

Korea

mars-11

10 000

35 000

Petroserv SA

Carolina

Daewoo

Daewoo

Korea

2012

10 000

35 000

Pride International

Deep Ocean Molokai

Samsung, DP3

Samsung

Korea

4Q - 2011

12 000

40 000

Pride International

PS-5

Samsung, DP3

Samsung

Korea

2013

12 000

40 000

Schahin

Cerrado

S10000E

Samsung

Korea

2011

10 000

37 000

Schahin

Sertao

S10000E

Samsung

Korea

2012

10 000

37 000

Seadrill

West Auriga

SHI S10000

Samsung

Korea

1Q 2013

12 000

40 000

Seadrill

West Vela

SHI S10000

Samsung

Korea

2Q 2013

12 000

40 000

Stena Drilling

Stena DrillMax ICE

Samsung DP Dual Mast Ice-Class

Samsung

Korea

2011

10 000

35 000

Vantage Drilling

Titanium Explorer

DSME Ultra Deepwater Drillship

Daewoo Shipbuilding

Korea

juli-11

12 000

40 000

Vantage Energy

Cobalt Explorer

DSME

Daewoo

Korea

2012

12 000

40 000

Vantage Energy Services

Dalian Developer

MPF 1000 6th Generation

Cosco Shipyard

Kina

juli-12

10 000

30 000

Vantage Energy Services

DragonQuest

DSME

Daewoo

Korea

juli-11

12 000

40 000 *Updated 07.03.2011

MARCH 2011 Offshore & Energy 23


>> rig market

Rig analyst Atle Hauge in Carnegie says 60 wells in Norway during 2011 is much, because of the current rig capacity. The fact is that it is a tight market and that rigs could quickly become a bottleneck, he says.

The exploration activity will increase in 2011, but the number of rigs may not. text by: JOHN Ă˜KLAND jo@offshore.no

Rig could halt explorations plans Offshore.no has previously reported that oil companies plan to gear up exploration on the Norwegian shelf in 2011. The number of wells will increase from 40 wells in 2010 to 60 in 2011. The Norwegian Petroleum Directorate finds these figures concerning. When the Directorate summed up 2010, it pointed out some problems with a higher activity. "If the activity increases, NPD believes limited capacity will once again be a problem. Increased rig capacity is particularly important to realise the planned activity. The current plans cover many wells, both exploration wells and production wells," NPD said about 2011. No available rigs At the same time as oil companies plans increased activity in the coming years, the rig companies with rigs qualified for work in Norway have the best cards. They experience a rush for rigs. But there are no available rigs for hire right now. The first rig to end its current contract is the semi sub Bredford Dolphin, which will be available in November or December. Some weeks later the first jack up, Maersk Giant, will be available. Rig Analyst Atle Hauge Carnegie says it sounds a lot with 60 wells considering the current rig count. "Of course it depends on how long time is spent drilling per well and what tasks are included. But the fact is that it is a tight market and that rigs could quickly become a bottleneck," he tells Offshore & Energy.

24 Offshore & Energy MARCH 2011

Returning rigs In the near future followings rig will enter the NCS. Scarabeo 8 is waiting for completion in Ă˜len and will not be ready before the end of the year. West Elara is expected to start working in August. These two including three COSL rigs, COSL Pioneer, COSL Promoter and COSL Innovator will enter the market once they've been completed. What will happen with Songa Eclipse and West Capricorn is not yet decided. The three jack ups Rowan Norway, Rowan Viking and Rowan Stavanger will not come to Norway in the nearest future to drill. Norway and Viking are both contracted in UKNC. It is important to say that Rowan Stavanger will come to Norway, but the jack up is contracted to Talisman at Yme as an accommodation rig from summer 2011 and for approximately 90 to 120 days. This leaves another possibility, to fetch rigs operating abroad. This will be costly for the oil operators. A rig needs approval from PSA before it can work in Norway, and this requires investments. In return, the rig companies can achieve better contract terms. "If this happens, the rig companies probably will demand long term contracts with day rates higher than $ 350.000-400.000. It also takes time to get a rig approved," Hauge says. It can take three months to six months, he estimates. Two rigs already have been approved, but both Eirik Raude and Leiv Eiriksson won't be able to work on the Norwegian shelf this year.


Efficient rig repairs and modifications with no time wasted

The Westcon yard has deep water quays, high payload cranes and a state of the art machinery

Rig repairs

park to fulfill our clients’ needs. The workforce is highly skilled and dedicated to ensure that yard

• Classification • Upgrading • Modification • Conversions

stays are as efficient as possible, resulting in over eighty rig projects since 1995. The rig projects performed range from the upgrade of older rigs to meet today’s advanced technical requirements to the modification of new rigs with sophisticated systems to suit their

Ship repairs

performed at the yard, with reinstatement of the derrick being performed on location.

• General ship repairs • Dry docking • Classification • Conversions

Customers enjoy the benefits of complete package solutions, including engineering, electrical,

Shipbuilding

working situation. Complicated challenges such as the removal of a derrick top have been

automation, mechanical, steel and piping disciplines. Engineering services are available near many clients’ offices/branches in Stavanger, or from the Westcon yard. Experienced offshore personnel are available for the performance of work offshore or on location.

• Customised vessels • LNG-fuelled vessels • Specialised offshore vessels • Seismic vessels • Fishing vessels

West Contractors AS • NO-5582 Ølensvåg, Norway • Tel: +47 53 77 50 00 • Fax: +47 53 77 50 01 • E-mail: westcon@westcon.no • www.westcon.no

DEEpsEa BErgEN

WEsT EpsilON

sTENa spEy

ByFOrD

lEiv ErikssON

Oktan Alfa - Photo: Westcon, Øyvind Sætre

WEsTcON yarD


>> rig market

The rush for accommodation rigs The market for accommodations rigs is now so hot that an oil companies must use a new drilling rig as hotel. text by: JOHN ØKLAND jo@offshore.no It's a battle for the vacant accommodations rigs in Norway. Normally the market tightens into the summer, but the trend now is that oil companies signs contracts earlier then before and offers jobs for other seasons as well. “This is a leading indicator that prices will go up, "says Bjørn Thoresen - rig analyst at First Securities. Seven units The contract situation for the semi accommodations rigs is as follows. MSV Regalia is leased to BP and Valhall through October this year. Safe Scandinavia is on contract with BP until March, before the rig moves to Statoil's Snorre A for six months work in August. Then it returns to BP and Valhall through January, with an option to March. After this, it is contracted to an undisclosed customer from August to November 2012. Safe Caledonia will continue in UK North Sea and BG, from March to November - with the option of working through January 2012. The Borgholm Dolphin has recently extended its contract with an unnamed customer in the UK North Sea, starting in November with duration of ten months. In addition there is an option period of four months. Floatel Superior is contracted to Talisman on Yme. In May the rig will move to its contract with Statoil at Oseberg for five months. It is thus employed to October this year. COSL Rival has a long-term contract with ConocoPhillips to the end of next year with options for further work. The seventh unit in this segment is Safe Bristolia. This rig is currently without a contract, but has limitations in terms of when it can work in practice and this is a summer-rig because of this.

26 Offshore & Energy MARCH 2011

No new builds “In practice accommodations rigs in the North Sea is sold out for 2011 and there are no new units entering the market. Nothing is under construction,” says Thoresen. This means that the market is tight for the next few years and then prices will go up. In contrast to the drilling rig fleet, which will see significant new construction deliveries in the years ahead, there are no new accommodation units under construction. Must use Jack Up The pressure on the accommodation rig sector is exemplified by Talisman rental of rig for Yme. The company has signed an agreement for the use of Floatel Superior for 90 days before the rig moves to Statoil in May. To further meet the need they have had to hire the new Jack Up Rowan Stavanger and use it as accommodation unit. “The rig is a new-build and has, for a drilling rig, a modern and quite large bed capacity. Since no accommodation units are available in the period from May, it has been necessary to hire a drilling rig for this purpose. Talisman has obtained market information for other possible housing units before it was decided to hire a drilling rig for the purpose”, says information manager Andreas Middleton in Talisman Energy Norge. The seven units mentioned have day rates of between $ 200,000 and $ 242,000. To hire the modern Jack Up Rowan Stavanger Talisman must pay just under $ 300,000, according to Rowan. “Talisman consider this option the best that the market could offer, "comments Middelthon. By comparison, it can also be mentioned that the company will pay $ 18,000,000 for 90 days with Floatel Superior, according to Floatel. This gives a day rate at $ 200,000. Here it could be mentioned that Rowan Stavanger is hired during peak season, while Floatel Superior is on a winter rate.


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MARCH 2011 Offshore & Energy 27


riglocator NAME

ACTIVE RIGS IN THE NORTH SEA OWNER

CLIENT

TYPE

Aker Barents

Aker Drilling

Det norske

Semi

Aker Spitsbergen

Aker Drilling

Statoil

Bideford Dolphin

Dolphin

Statoil

Borgland Dolphin

Dolphin

Borgsten Dolphin

Dolphin

Bredford Dolphin

Dolphin

Byford Dolphin

CONTRACT YEAR CONTRACT MONTH DAYRATE SECTOR $520 000

Norway

COMMENT

2014

7

Semi

2013

7

$537 000

Norway

+ 2 years opt. x 5

Semi

2014

1

$385 000

Norway

1 year opt.

Cons.

Semi

2014

1

$530 000

Norway

Undisclosed

Semi

2011

10

$240 000

UK

Lundin/Premier Oil

Semi

2011

11

$333 000

Norway

Dolphin

BP

Semi

2013

4

$324 000

UK

Deepsea Atlantic

Odfjell Drilling

Statoil

Semi

2014

8

$490 000

Norway

Deepsea Bergen

Odfjell Drilling

Statoil

Semi

2015

6

$320 000

Norway

+ opts.

Energy Endeavour

Northern Offshore Maersk Olie og Gas

Jack Up

2012

4

$70 000

Denmark

2 years opts.

Energy Enhancer

Northern Offshore Ithica/Perenco

Jack Up

2011

7

$70 000

UK

To Perenco early May 2011

Ensco 100

Ensco

Shipyard/E.On

Jack Up

2012

3

$130 000

UK

E.On from May.2011

Ensco 101

Ensco

Maersk

Jack Up

2012

1

$170 000

UK

Plus one unpriced option

Ensco 102

Ensco

ConocoPhillips

Jack Up

2016

6

$200 000

UK

Plus options.

Ensco 70

Ensco

Maersk, PA Resources, Tullow

Jack Up

2012

9

$60 000

UK

Accommodation work.

Ensco 71

Ensco

Maersk

Jack Up

2012

1

$80 000

Denmark

Ensco 72

Ensco

RWE/Shipyard/Maersk

Jack Up

2012

6

$80 000

UK

Ensco 80

Ensco

Tullow, Wintershall

Jack Up

2011

12

$130 000

UK

Ensco 92

Ensco

ConocoPhillips. E.On

Jack Up

2012

7

$100 000

UK

GSF Arctic III

Transocean

ExxonMobil

Semi

2011

7

$249 000

UK

GSF Galaxy II

Transocean

ADTI

Jack Up

2011

3

$150 000

UK

GSF Galaxy III

Transocean

Nexen

Jack Up

2011

10

$107 000

UK

J W McLean

Transocean

Marathon

Semi

2011

3

$258 000

UK

Maersk Gallant

Maersk Drilling

ConocoPhillips

Jack Up

2013

3

N/A

Norway

Maersk Giant

Maersk Drilling

Talisman

Jack Up

2011

12

$340 000

Norway

Maersk Guardian

Maersk Drilling

Talisman

Jack Up

2012

3

$295 000

Norway

Maersk Innovator

Maersk Drilling

ConocoPhillips

Jack Up

2017

2

N/A

Norway

Maersk Inspirer

Maersk Drilling

Statoil

Jack Up

2015

1

N/A

Norway

Maersk Reacher

Maersk Drilling

Maersk Olie og Gas/BP

Jack Up

2014

6

N/A

Denmark

Maersk Resolute

Maersk Drilling

Dong

Jack Up

2011

12

N/A

Denmark

Maersk Resolve

Maersk Drilling

Maersk Olje og gass

Jack Up

2011

5

N/A

Denmark

Noble Al White

Noble Drilling

Total

Jack Up

2011

6

$112 000

Holland

Noble Byron Welliver

Noble Drilling

ATP/Chevron/Yard

Jack Up

2011

11

$86 500

Denmark

Noble George Sauvageau

Noble Drilling

Wintershall

Jack Up

2011

12

$93 000

Germany

Noble Hans Deul

Noble Drilling

Shell

Jack Up

2013

2

$175 000

UK

Noble J. Robertson

Noble Drilling

Centrica

Jack Up

2012

3

$88 000

UK

Noble Lynda Bossler

Noble Drilling

Dana (KNOC)

Jack Up

2011

10

$88 000

Holland

Noble Piet van Ede

Noble Drilling

Gaz de France

Jack Up

2011

12

$86 000

Holland

Noble Ronald Hoope

Noble Drilling

Gaz de France

Jack Up

2011

12

$87 000

Holland

Noble Scott Marks

Noble Drilling

Centrica/Saudi Aramco

Jack Up

2014

6

$213 000

UK

Noble Ton van Langeveld

Noble Drilling

Centrica/Maersk

Semi

2011

7

$247 000

UK

Ocean Nomad

Diamond Offshore

BG Intl.

Semi

2011

6

$240 000

UK

Ocean Princess

Diamond Offshore

Talisman

Semi

2011

7

$330 000

UK

Ocean Vanguard

Diamond Offshore

Statoil

Semi

2013

6

$349 000

Norway

Paul B. Loyd

Transocean

BP

Semi

2012

3

$503 000

UK

Polar Pioneer

Transocean

Statoil

Semi

2014

1

$503 000

Norway

Rowan Gorilla V

Rowan

Total

Jack Up

2013

2

$160 000

UK

Rowan Gorilla VII

Rowan

Apache

Jack Up

2012

5

$180 000

UK

Rowan Gorilla VI

Rowan

BG

Jack Up

2011

7

$200 000

UK

Rowan Stavanger

Rowan

Talisman Norway

Jack Up

2012

10

$300 000

UK

Rowan Viking

Rowan

Total

Jack Up

2012

10

$220 000

UK

Scarabeo 5

Saipem

Statoil

Semi

2013

12

$399 000

Norway

Sedco 704

Transocean

ADTI

Semi

2011

6

$417 000

UK

Sedco 711

Transocean

Shell

Semi

2011

10

$416 000

UK

Sedco 714

Transocean

Total

Semi

2011

12

$251 000

UK

Songa Dee

Songa Offshore

Marathon/Lundin/Statoil

Semi

2014

6

$423 000

Norway

Songa Delta

Songa Offshore

Det Norske/Wintershall

Semi

2012

2q

$448 000

Norway

Songa Trym

Songa Offshore

Statoil

Stena Carron

Stena Drilling

Chevron

Stena Don

Stena Drilling

Stena Spey

Stena Drilling

Transocean Arctic

2 years opt.

To Preimier Oil Aug. 2011 + 1+2 years opts.

1+1+1 years opt. Plus three one-well options.

2 year opt.

2 year opt. BP Norway from May 1 year opt. Plus a six month priced opt. Plus opt.

To Saudi Arabia Jun. 2011.

+ opt.

1 year opt.

To Statoil summer 2011.

Semi

2012

7

$365 000

Norway

Drill Ship

2013

8

$515 000

UK

2x1 year opt.

Statoil

Semi

2013

12

$400 000

Norway

TAQA Bratani

Semi

2011

11

$355 000

UK

Transocean

Statoil/Rig management team

Semi

2012

12

$286 000

Norway

Transocean John Shaw

Transocean

Enquest

Semi

2011

7

$246 000

UK

Transocean Leader

Transocean

Statoil

Semi

2015

2

$459 000

Norway

one year opt.

Transocean Rather

Transocean

ExxonMobil

Semi

2012

9

$428 000

Angola

Moved to Angola. To BG May 2012

+ 18 months opt.

Transocean Searcher

Transocean

Statoil/BG

Semi

2013

7

$422 000

Norway

Transocean Winner

Transocean

Lundin

Semi

2012

10

$471 000

Norway

West Alpha

Seadrill

BG consortium

Semi

2012

6

$494 000

Norway

West Epsilon

Seadrill

Statoil

Jack Up

2014

12

$276 000

Norway

West Navigator

Seadrill

Shell

Drill Ship

2012

12

$599 000

Norway

West Phoenix

Seadrill

Total

Semi

2015

1

$536 000

Norway

To UKNS from Jan.12

West Venture

Seadrill

Statoil

Semi

2015

7

$419 500

Norway

2 x 1 year opt.

Plus 2 year opt.


OFFSHORE & ENERGY

Ordering rig number four to Norway Can have four mid water rigs on the shelf in 2014. “We stresses our strategy.” text by: JOHN ØKLAND jo@offshore.no COSL Drilling Europe has three rigs on the way to Norway, and now they order rig number four. COSL Pioneer, COSL Innovator and COSL Promoter shall operate in Norway and is contracted by Statoil. At the same time the company has worked to finish the building and delivery process on these three rigs, they have been discussing building the fourth rig. Had the drilling package A NOV-drilling package is built in Grimstad, completed and sent to China. COSL has also bought thrusters and an engine from RollsRoyce. All intended for the next rig. “We are currently considering three different types of design and plan to award the design contract in the third quarter this year. Depending on yard capacity, we expect delivery fourth quarter 2013 or first quarter of 2014, “ says CEO Jørgen Arnesen in COSL Drilling Europe to Offshore & Energy. He says that the rig will be built able drill down to 1,500 meters, but that the company focuses on working in the 500-600 meter segment with their rigs. By doing this, COSL Drilling is thinking different than several other players. Both Aker Drilling and Odfjell Drilling recently have flagged an enormous faith in deep waters and huge rigs. “We have not succumbed to the temptation to build for ultra-deep waters, but remained true to our strategy - which is to focus on work at 500-600 meters - instead of 3,000 meters. We have a plan to be in Norway with our rigs for at least 20-30 years and have great faith in the possibilities for drilling rigs specially fit for Norwegian waters.” Far more affordable A rig is not just a rig - to build and hire a giant rig is expensive and can be unnecessarily large. While the ultra-deepwater units can quickly come up in 700 million dollars and more, mid water rigs, will be much cheaper. It means that one can accept a lower day rate and still earn good money. How much the final bill is for the three rigs that

are going to Norway, Arnesen will not say. Nor what the fourth rig will cost. But there is little doubt that it will be competitive, set up against many older rigs - or giants.

no choice, "he notes.

The oldest semi-submersible rig on the Norwegian Continental Shelf is now Bideford Dolphin, which was built in 1975. The rig can fetch day rates of $ 385,000 when it is now going on his new contract with Statoil for the next three years.

“Ten years ago we said that the oldest rigs were on the way out. We are talking about the same rigs in the same way to day. Some of the older rigs are super effective on the jobs they do. So to say that 20 to 30 percent of the Norwegian fleet must be replaced - is just nonsense, "he underlines.

“There are to many older rigs on the Norwegian continental shelf and there is a need to renew the fleet. Average age in Norway is only about a year better than the UK and other places, “ he reminds.

When it comes to the focus on renewing the rig fleet in Norway, Hauge is not sure that news rig automatic can beat the good old ones.

“Confirming our strategy” COSL is not alone when thinking that most of the shelf does not have the need for the biggest drilling rigs. Statoil is soon to send out a tender of at least two rigs specially adapted to Norwegian conditions. These are smaller units - in line with Arnesen now order a fourth of. “It's nice to see that they confirm that our strategy is good and we look with interest for this possibility. We try to focus our strategy to invest as we do.” Rig number four is now on the way, but nor shipyard or design is decided. But one thing can Jørgen Arnesen tell; the name. “The rig will be named COSL Target.” A tight market Rig Analyst Atle Hauge in Carnegie turns thumbs up for COSL Target, with delivery in 2014. “I believe it is appropriate to build a semi-rig for Norway, because the market is super tight and long-term picture will probably be the same in 2014,” he says. Hauge believes that the market for the rig will be good, both in terms of job opportunities and the size of the day rate it achieves. “If one is to build a floater one must be build for Norwegian conditions, or a deepwater rig. The math does not work in other ways. Since COSL already had a drilling package, they really had

While the older devices will be able to offer lower prices, COSL and other players have the advantage of ultra-modern rigs built for the future. When the calendar shows 2014, we get the answer to how the market receives the COSL Target. “With a contract for two or three years, one can probably wait a day rate of 400,000, maybe something about this, "Hauge predicts.

MARCH 2011 Offshore & Energy 29


>> rig market OTHER RIGS NAME

OWNER

CLIENT

TYPE

CONTRACT YEAR

CONTRACT MONTH

DAYRATE

LOCATION

COMMENT

COSL Pioneer

COSL Drilling Europe Statoil

Semi

2012

6,

$320 000

Asia

+2+2 years. Delivered - ready for

Deepsea Stavanger

Odfjell Drilling

Ophir Energy / BP

Semi

2013

2q

$450 000

Tanzania

To Angola/BP 2q 2011 + 1+1+1

Eirik Raude

Ocean Rig

Tullow

Semi

2011

11,

$637 000

Africa

+ LOI for two wells with Borders &

GSF Britannia

Transocean

Jack Up

N/A

UK

Stacked.

GSF Galaxy I

Transocean

Jack Up

N/A

UK

Stacked.

GSF Labrador

Transocean

Jack Up

N/A

Holland

Stacked.

GSF Magellan

Transocean

Jack Up

N/A

Holland

Stacked.

GSF Monarch

Transocean

Jack Up

N/A

Holland

Ready stacked.

Jack Bates

Transocean

Hess

Semi

2011

4,

$420 000

Australia

"Moved to Australia.

Leiv Eriksson

Ocean Rig

Petrobras

Semi

2012

10,

$540 000

Tyrkey

Ocean Guardian

Diamond Offshore

AGR, Desire,

Semi

2011

7,

$240 000

Falkland

Sedco 712

Transocean

N/A

UK

Transocean Prospect

Transocean

ADTI

Semi

2011

4,

N/A

UK

WilHunter

Awilco Drilling

Consortium

Semi

2011

6,

$166 000

UK

In class through May 2011.

WilPhoenix

Awilco Drilling

AGR Petroleum

Semi

2011

6,

$233 000

UK

One well + 6 opt. wells

operation early 2011.

Southern at Falkland Island + opt.

"

Rockhopper Semi

Stacked

Services COSL Innovator

COSL Drilling Europe Statoil

Semi

2019

11,

$335 000

Norway

8 X 1 years opt. Under construction.

COSL Promoter

COSL Drilling Europe Statoil

Semi

2020

1Q

$335 000

Norway

8 years opt. Under construction.

COSL Target

COSL Drilling Europe

Semi

N/A

Norway

Island Innovator

Island Offshore

N/A

Norway

Rowan Norway

Rowan

Xcite Energy

Jack Up

2012

6,

$250 000

UK

Scarabeo 8

Saipem

ENI

Semi

2014

10,

$460 000

Norway

Yard stay until 4Q 2011.

West Elara

Seadrill

Statoil

Jack Up

2016

10,

$350 000

Norway

Contract from Aug. 2011 + four year

Start on contract is 2011. Semi

Del. Jun. 2011

otps.

>> This list was last updated November 29. Please visit our online rig locator at www.offshore.no. Questions, errors and other feedback can be sent to jo@offshore.no.

Three rigs in line It is busy times at Westcon in Ølen. text by: JOHN ØKLAND jo@offshore.no The start of 2011 has been good for Westcon in Ølen. The yard won the huge job on the Scarabeo 8. The work task for Westcon has doubled since they won the contract with rig owner Saipem. In addition, the Seadrill unit West Alpha came to quay for installation of new equipment in February. At the same time, the accommodation

30 Offshore & Energy MARCH 2011

rig Floatel Superior was completed. The rig is hired by Talisman for work on the Yme-field, before it is off to Statoil in May. - We experience very high activity these days and have job to approximately 1.400 people. The number of contracts we have won shows that Westcon is a prefferd yard for both rig and ships, says CEO Øystein Matre.

Floatel Superior, West Alpha and Scarabeo 8 at Westcon Yard in Ølensvåg. (Photo: Øyvind Sætre)


Aker Spitsbergen is one of two rigs that

Aker Drilling has long-term contract. OFFSHORE & on ENERGY (Photo: Aker Drilling)

Investing billions in deep water units Aker Drilling has an ambition. The ambition is to own rigs for up to 35 billion Norwegian kroner within 2016. text by: JOHN ØKLAND jo@offshore.no Half of the discoveries in the world to day are done now in ultra deep waters. This gives the rig companies eager to acquire new, modern units designed for harsh conditions and with the capacity to drill ultra deep. As one of several players in the rig industry, Aker Drilling also has a strong desire to win stakes in a strongly growing market. Aker Drilling already possesses the two ultra-deepwater rigs, Aker Spitsbergen and Aker Barents. These rigs have very good performance and day rates for a total of over USD 1 million, which secure a solid cash flow to the company. Aker Spitsbergen is leased out to Statoil until the summer of 2013, plus options that could give the rig job for another ten years. Aker Barents is hired by Det norske, an agreement that lasts until the summer of 2014, plus an option for another two years. Aker Drillings focus In February the company entered into a letter of intension to build two drill ships from the DSME shipyard in South Korea. In addition, an option for two additional drill ship, are secured.

“We already have two rigs built for harsh conditions and can operate in deep water, and with this LoI, we can secure up to four modern drill ships. We wish to underline our focus and faith in the deepwater market, "says CEO of Aker Drilling Geir Sjøberg to Offshore & Energy. The price per drillship is approximately 600 million dollars, or 3,5 billion Norwegian kroner. If the company decides to build both of the two first and then take options on unit three and four as well, the total sum may reach 14 billion. And more can come. “We believe it makes sense to have a level of ambition of further growth. In this light we have said that this level should be between six and ten units in total by 2015-2016”, Sjøberg explains. What kind of units we are discussing in such an estimate is not set in stone. “It's something we need to consider from project to project, so there are not any guidelines that it must be just drill ships or just semi subs. We want to continue to focus on units for deepwater and harsh environment”.

Up to 35 billion If the fleet shall grow to ten units in total, Aker Drilling has to order another four drill ships or rigs. Another 14 billion are needed. Adding the final bill for Aker Barents and Aker Spitsbergen, the company may have bought rigs for about 35 billion Norwegian kroner. Another element is which region the company now are focused at. Exploration drilling in deep water is often linked to Brazil, Gulf of Mexico and West Africa, but Norway is far from being excluded as a target. Sjøberg stresses that the northern regions, including Norway is "very exciting". The Statoil tender A good opportunity for Aker Drilling at home is Statoils tender for so-called category D-rigs. Here, Statoil will ask for two or more new rigs specially fit for the Norwegian shelf. The rig companies that wins this opportunity is secured contracts for eight years on these units. “We are following this tender with interest and make our assessments”, is all Geir Sjøberg will say about this matter.

MARCH 2011 Offshore & Energy 31


>> rig market

Very good times to come Deepsea Metro I is the first of two drill ship that Odfjell and Metrostar Group has ordered. (Photo: Odfjell Drilling)

Deepsea Atlantic is back to work for Statoil. The rig is one of two ultra deepwater units owned by Odfjell Drilling. (Photo: John Økland)

“But there will be ups and downs”, says Simen Lieungh, CEO in Odfjell Drilling. text by: JOHN ØKLAND jo@offshore.no

The rig market is again prepared for a positive cycle. After the financial crisis a number of players have filled the order books at the most popular shipyards by ordering new rigs. The times have changed from investors pending to at great belief in the market. “We now see that it is far more financial capacity in the market than just a few months ago and the activity at the shipyards in Korea, for example, is formidable", says CEO of Odfjell Drilling, Simen Lieungh. Odfjell had a busy 2010 in which the company landed new contracts for both Deepsea Bergen, Deepsea Stavanger and got Deepsea Atlantic back in business after a lost trial against Statoil. In 2011, the focus is to complete agreements for the two drill ships currently under construction at Hyundai Heavy Industries in South Korea. Odfjell owns 40 percent of each rig, with delivery in May and November this year. None of the units are rented out yet, but Lieungh is working on it. “We expect to conclude contracts for both units before delivery. I'm not concerned that it does not go as planned”. No new plans Like several other players Lieungh is pointing towards the deep water and difficult weather conditions. Both Seadrill, Aker Drilling and others have ordered a number of new units, based on faith and hope of the future market. Odfjell has not decided to order additional units – yet. “There are no plans to order new rigs for us at the moment. We have just

32 Offshore & Energy MARCH 2011

received two ultra deepwater rigs (Deepsea Atlantic and Deepsea Stavanger). Now we are waiting for the two drill ships later this year. So we are focused on our plans for deep water and harsh environment", says Lieungh. Positive to Statoil rigs As everyone else in the rig industry Odfjell is informed about Statoils tender for new category D-rigs for Norwegian waters. The oil company is expected to go out in the market and ask for two so-called category D-rigs, which are specially adapted for use on the Norwegian continental shelf. These are devices that are smaller than the two giants Deepsea Atlantic and Deepsea Stavanger. The rig companies winning this contract are promised long-term contracts of up to eight years. This is an offer Odfjell Drilling are waiting for with great interest. “Statoil has seen a direct need for this type of rigs on the shelf. We are positive to this process and believe it will be an important step in the right direction to renew the fleet in Norway”. “A good recovery” Odfjell Drilling has rigs in Norway and in other areas. The company knows both the strong demand at home and the huge opportunities in new geographic areas worldwide. Among other things, Deepsea Stavanger drilled the first well on ultra-deep water in Tanzania. And Lieungh thinks the market is now moving in the right direction again. “The trend is good now, but I do not see a bonanza in the next few years. We believe in a good recovery, but the road is bumpy - and the need for rig capacity is irrevocable”.


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P.O.Box 55 N-5347 Kystbasen Ågotnes

Tel: 56 32 30 00 - Fax: 56 33 51 91 www.coastcenterbase.com

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MARCH 2011 Offshore & Energy 33


>> rig market

Who will aim for 20 years with Statoil? 13 drilling companies are invited to bid on Statoil’s new rig tender. But it is not too interesting for everyone. text by: JOHN ØKLAND jo@offshore.no Late February Statoil sent out an invitation to 13 rig companies to build two specially designed rigs on behalf of Statoil for use on mature fields on the Norwegian continental shelf (NCS). The purpose is to make drilling and completion of production wells less expensive, more effective and safer, and thereby boost oil recovery. “Big and costly” “The rigs delivered to the NCS in recent years were first and foremost constructed for operations in deep water. That means that they are big and too costly for our requirements and challenges on the NCS. We are therefore taking steps to rejuvenate the rig fleet and ensure that the right rig meets the right requirements”, says Jon Arnt Jacobsen, chief procurement officer in Statoil. The specially designed category D rig is able to operate at water depths of 100-500 meters and drill wells down to 8,500 meters. It will be a workhorse on mature fields, primarily for drilling production wells and well completion. Statoil is issuing a tender for minimum two such rigs for work on the NCS. The contract will run for either eight years with four three-year options or for 20 years firm contract period. An unusually long period of contract, but this will reduce the risk for the drilling contractor who will build the rig. “This is a strategy from Statoil to achieve good prices. To provide long-term contracts has historically been a way for the oil companies to secure attractive day rates”, says rig analyst Bjørn Thoresen at First Securities. At what level the contracts will be settled at only time will show when the tender winner is decided. However, where a comparable agreement concluded today at just under $ 400,000 per day, the winner will probably have to offer a day rate in the area of $ 330,00 to 350,000, according to industry sources. 20 percent more A rig like this will be able to drill and do well

34 Offshore & Energy MARCH 2011

completions in the North Sea and the Norwegian Sea throughout the year. “The goal is that the new rig will drill 20 percent more effectively than conventional rigs,” says Jon Arnt Jacobsen. Plans call for the contract to be awarded in the third quarter of 2011 and the rigs to be delivered in the second half of 2014.

the companies as follows: Very interested: Songa Offshore Aker Drilling Fred. Olsen Energy Odfjell Drilling COSL Drilling Europe

Five favorites According to Statoil is 13 rig companies invited to bid into the contract, without saying which ones. It would nevertheless be appropriate to list the following companies, which now will start to calculate.

Possible interested: Diamond Offshore

Fred. Olsen Energy

Stena Drilling

Ocean Rig

Saipem

Transocean

Maersk Drilling

COSL Drilling Europe

Ocean Rig

Songa Offshore

Island Offshore

Seadrill

Then, what about the price? None of the analysts we have talked to or Statoil will comment anything in public about this. But as we know it, a complete rig in this contest can cost somewhere between 550 and 600 million dollars.

Aker Drilling Odfjell Drilling Stena Drilling Saipem Maersk Drilling Diamond Offshore Island Offshore Several sources Offshore & Energy has talked to points out that several rig companies do not have the need to send inn a low offer, just to win the contract. But it seems natural that all will bid. “I think most of the rig companies that are invited will be interested in bidding. This ensures growth with a relatively secure cash flow. The question is, who see the greatest value in winning such a long contract with a fixed rate", says Thoresen. Experts Offshore & Energy have talked to see

Less interested: Seadrill Transocean

According to Statoil it may be necessary to build up to four such workhorses, as Statoil like to call them. Built in Korea or Singapore Statoil has reserved slots at four different construction yards. The four yards have the proven construction record Statoil requires to be able to build the rigs within the expected delivery time, according to a press release. These four shipyards are: Daewoo Shipbuilding in Korea Samsung Heavy Industries in Korea Keppel FELS in Singapore Jurong Shipyard in Singapore


OFFSHORE & ENERGY

Trying to break The Norwegian Sea lava code Experts from 18 oil companies, government bodies and various research institutes and service companies are working together to find out more about the possibilities hidden beneath the lava in the Norwegian Sea, the so-called sub-basalt.

CONTRACT MANAGEMENT & E-SOURCING SOLUTIONS MAXIMIZES THE VALUE OF ALL YOUR CONTRACTS Probably, your main Client already runs Contiki… ..or even your main Competitor or Contractor. Where does that place your company in the competitive landscape?

CONTIKI provides a systematic approach for improving contract performance and compliance within: • Procurement & Contracts • Supply Mgt. / Sourcing • Commercial / Tender / Subcontracting • Legal These volcanic rocks are masking the underlying level, and they make seismic imaging challenging. No wells have to date been drilled through the volcanic rocks in the west. "There are plans for a test well in the area that can give us more information about opportunities there," Bente Nyland, Director General at the NPD, tells Offshore & Energy. "The results can also help us to understand the geology around Jan Mayen better." ExxonMobil’s elephant hunt Located 400 km from the coast and at over 1200 meters depth, ExxonMobil hopes to find the next elephant on the Norwegian continental shelf. License 520 in the northwestern part of the Norwegian Sea is, with its 2000 square kilometers, among the largest on the NCS in terms of area. "We have done seismic surveys and are trying to understand the results of these investigations," John Whelan, head of ExxonMobil's operations in the North Sea, told Offshore & Energy.

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O&E: "Are you mainly chasing elephants on the NCS?" "That is true. Given the size of the company, it is important for us that the prospects have large potential, we need to own a substantial share and we also like to be the operator," he says. Noreco dreams of hitting the jackpot Noreco, which owns 50 per cent of the license, has already revealed their high hopes related to the prospect. Last year the company suggested that the area could contain between 500 and 2500 million barrels of oil equivalent. In comparison, the Gullfaks field originally contained 2.264 billion barrels of oil. “The potential is huge for such a small company, but the probability of a large discovery is quite small. Expectations also decreased with the disappointing results from Shell's Gro and Dalsnuten wells," says analyst Carl Christian Bachke in RS Platou Markets.

ABOUT CMA CONTIKI CMA Contiki has developed Enterprise Contract Management solutions since 1991. The company has clients in more than 70 countries and is one of the leading ECM providers worldwide. Our global leadership in the Oil & Energy industry and 20 years of experience from developing Contract Management software gives us a clear edge over our competitors.

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MARCH 2011 Offshore & Energy 35


(Photo: Petrobras)

>> norwegian technology abroad

For three out of every four partners in Norway’s Intsok, Brazil is a very important market, but there are 126 other nations in the world where it is thought easier to establish new business. text by: GLENN STANGELAND gs@offshore.no

Brazil is every supplier Brazil’s market is a big attraction to suppliers because of investments predicted at US $174 Billion (NOK 1000 Bn) over the next four years. Norwegian suppliers are active in the hunt for a share of that money. But the road there can be long and bumpy, Brazil watchers have said. “A common mistake is to take too lightly on the specific challenges that apply to Brazil,” says Erik Hannisdal, of Inventure Management. “It is not without reason that the country is ranked number 127 in the world on "ease of doing business,” says Hannisdal who has previously worked with Innovation Norway but who now concentrates on helping companies set up in Brazil. Most important While South-East Asia, India and Australia are now seen as the most important foreign markets for Norwegian suppliers, followed by West Africa, the UK North Sea, and the US, the situation is changing. A report by Rystad Energy prepared for Intsok now shows that Brazil is considered to be the market that most vendors consider to be the most important. And the US Gulf of Mexico and the UK are next in line. One of the drivers behind that perception is the

36 Offshore & Energy MARCH 2011

size of the resource opportunity available as a result of recent pre-salt discoveries: Total estimated reserves for Brazil are now put at over 50 billion barrels since major discoveries were made in pre-salt fields. Before the country's pre-salt discoveries, Brazil’s known reserves were 14 billion barrels. BG, in partnership with Brazil’s major operator Petrobras has netted huge finds offshore Brazil in Carioca, Guara, Iara, and Tupi, whose reserves have been measured in billions of barrels of oil. Also the exploration drilling success rate offshore Brazil is now put at 90%, but the technical challenge for operators and partners is a big factor too: New field developments are typically in deep water with depths ranging from 2,000 to 3,000 metres (6,560 - 9,840 ft) - and 480 kilometres (300 miles) offshore, creating huge demand for a new logistics industry with rigs, supply vessels and helicopters all needed. Opportunities throughout the value chain Hannisdal says this means big opportunities too: “There are opportunities in many different areas, when the sector in Brazil is experiencing a strong growth phase, with increased demand for most products and services.”

He points out that Brazil aims to grow production from 2 million to 5 million barrels over the next 10 years, mainly from offshore. “There will be opportunities throughout the value chain. Brazil currently has a great shortage of qualified and specialised personnel. The companies that win the battle for the market here will be those that effectively manage to transfer their expertise to Brazil,” he suggests. NOK 10 billion Norwegian suppliers secured just under NOK 10 Bn (US $1.74 Bn) of turnover from Latin American states Brazil, Venezuela and Mexico in 2009, which represents a 12% market share. Around 50 Norwegian offshore suppliers are now established in Brazil. According to UK Trade and Investment, Brazil is the largest energy market in Latin America. With global subsea equipment spending estimated to hit US $64 Billion between 2009 and 2014, the South American market - dominated by Petrobras - will account for some 42% of that global spend. “It is estimated that Brazil will need to purchase approximately 525 wet Christmas trees, 4,000 km of flexible lines, 2,200 km of umbilicals and


(Photo: Petrobras)

OFFSHORE & ENERGY

rs dream more than 30 manifolds over the next three years and that there is not enough local supply to meet this demand,� according to UKTI figures. And the overseas trade and investment arm of the UK government highlights some of the key opportunities that exist for companies which have technology to sell into the Brazilian offshore energy market: These include subsea

(Photo: Petrobras)

engineering expertise, riser qualification engineering for ultra-deepwater applications with CO2 and high-pressure capabilities. There is scope for suppliers of riser towers, and steel catenary risers with lazy wave configurations, and for qualification of thermally insulated flowlines, and high pressure gas injection flowlines.

FACTS BRAZIL Norwegian offshore suppliers had a turnover of NOK 10 billion in Brazil, Mexico and Venezuela in 2009. Three out of four Intsok partners consider Brazil to be their most important market abroad. Some 50 Norwegian offshore suppliers are established in the country. Statoil operates the Peregrino field.

MARCH 2011 Offshore & Energy 37


>> norwegian technology abroad

The road to Brazil "Good advisors, funding, patience, lawyers and local knowledge are key to Norwegian suppliers who want to establish themselves in Brazil," K. Lund Offshore tells Offshore & Energy. text by: GLENN STANGELAND gs@offshore.no Norwegian suppliers consider Brazil to be the most important international market, and K. Lund Offshore is among the companies working to secure its share of the contracts available there. "It was through Aker we received the first deliveries to Petrobras, and they were our door opener. Petrobras is our main customer, but we also deliver to Statoil, Subsea 7, Aker Solutions and Seawell and others," says managing director Gaute Jørpeland. "The Norwegian companies that establish themselves now will stand strong when the market develops."

and use the time to familiarise [oneself] with local conditions. We have doubled sales in Brazil in the last three years and [we] expect to end up at around NOK 40 million turnover in 2011. We expect that 2011 will be the first year that this part of our business makes a profit," said Jørpeland. Best technical resources The upside is great. Many companies are interested, many have tried and many have failed.

Established in 2004 K. Lund Offshore achieved its first delivery to Brazil in 2003 and established its own business in the country in 2004. But the company, which supplies compressors and lifting equipment to the offshore market, admits that the way to Brazil can be long and tortuous.

"The most common mistake is to underestimate the need to use their best technical resources to get into position. This is a huge cost for the company at home. The smaller a company is, the more vulnerable it will be, says Erik Hannisdal at Inventure Management, who has a background from Innovation Norway, but who now advises companies seeking to establish themselves in Brazil.

"It is another world, literally. One must understand the cultural differences

Large companies are usually first when new markets are to be conquered.

38 Offshore & Energy MARCH 2011


OFFSHORE & ENERGY

But with a mature home base, more and more small companies need new business opportunities. For them, cooperation may be the solution. Networks "We are now seeing a trend that small companies form networks to acquire knowledge before entry. We have even organised several such networks already, and for the individual enterprise, it might be a good opportunity to obtain information sufficient to build a good basis for decisions. We've also seen companies come together and form joint ventures for a Brazilian initiative. This is an interesting model, which may cause the companies to get a larger resource base," said Hannisdal. There are investment plans for up to NOK 1000 billion in the Brazilian offshore market over the next four years, but Jørpeland do not think there is reason to fear that the enormous investments will be draining the Norwegian suppliers industry. "Because of the demands for local content, that will never happen," he said. Hannisdal believe these requirements makes it harder to get into the Brazil market with products than with services. "You often have to go through a Petrobras qualifying round to succeed. This is a bureaucratic process, and one must therefore be prepared to spend both time and money to get into position. Local content is also required for products, which in the longer term means a need for production, testing and assembly in Brazil," he said.

K. Lund Offshore's advice to companies wishing to establish themselves in Brazil 1. Get good local financial advisors, both Norwegians and locals. Lawyers with varied professional backgrounds are also necessary to avoid many unpleasant surprises. 2. Have access to funding. Things take time, and it is expensive to establish a business there. Having Norwegian employees in Brazil, is also expensive. 3. Choose the right geographic area. For operation and maintenance, MacaĂŠ is the right area, while Rio may be the right

place if you focus on newbuilds. If one is to engage in production, it may well be that neither city is the right choice. 4. Use resources on recruiting. It is challenging to find the right people. 5. Be present. One should have a Norwegian employee who can make sure the culture of the company is transferred to the Brazilian business.

MARCH 2011 Offshore & Energy 39


40 Offshore & Energy MARCH 2011 9

16

11

10

15

6

4

2 5

7

STATOIL: 2. SKRUGARD - 532

TOTAL: 1. NORVARG - 535

>> BARENTSHAVET

3

8

1.

OMV:

NEXEN EXPLORATION: 13. RONALDO - 434

MAERSK: 12. T-REX - 431

EON RUHRGAS: 11. SESAM - 350

DET NORSKE: 10. SKAUGUMSÅSEN - 482

BG: 9. GULLRIS - 522

>> NORSKEHAVET


42

35

39

24

19

21

25

37

38

20

29 30

33

26

28

40 41

32

31

34

27

43

23

36

45

44

22

17

12

18 14

13

MARATHON: 32. CATERPILLAR - 340 (DISCOVERY) 33. EARB SØR - 505

LUNDIN: 28. TELLUS - 338 29. AVALDSNES - 501 - AVGRENSNING 1 30. AVALDSNES - 501- AVGRENSNING 2 31. ALBERT - 519

EON RUHRGAS: 27. BREIFLABB - 416

DET NORSKE: 22. DOVREGUBBEN - 468 23. ULVETANNA - 356 24. KALVKLUMPEN - 414 25. STOREBJØRN - 450 26. STEINGEITA - 460

CONOCOPHILLIPS: 21. PEKING DUCK - 301CS - 1. KVARTAL

CENTRICA: 20. BUTCH - 405

BG: 19. JORDBÆR VEST - 373S

>> NORDSJØEN

WINTERSHALL: 43. GNATCATCHER - 378 (DRY) 44. GROBEAK AVGRENSNING - 378 45. SKARFJELL - 418

STATOIL: 40. MCHENRY - 303 (DISCOVERY) 41. DR.NO - 303 42. RIMFAKSDALEN - 050 (DISCOVERY)

STATOIL: 37. AVALDSNES VEST - 265 38. ALDOUS NORD - 265 39. KRAFLA - 272

PREMIER OIL: 36. GARDROFA - 406

PETRO-CANADA: 35. BETA BRENT - 375 - AVGRENSNING

NORECO: 34. SVANEØGLE - 545 (DISCOVERY)

STATOIL: 18. SPINELL SØR - 429

WINTERSHALL: 17. MARIA AVGRENSNING - 475BS

DONG ENERGY: 7. YPSILON - 518 GDF SUEZ: 8. HEILO - 530

RWE DEA: 16. ZIDANE 2 - 435

ROCKSOURCE: 15. PL - 559

14. CHAMONIX - 471

ENI: 4. PULK - 533 5. SALINA - 532 6. BØNNA - 529

3. LUNDE - 488 (DRY)

OFFSHORE & ENERGY

MARCH 2011 Offshore & Energy 41


>> norwegian technology abroad

A british fairytale coming our way The British market has fallen in recent years, but now there is a sharp rise in waiting. Projects for a hundred billion are going out in the market. Also Statoil joins and plans to invest 60 billion dollars on Mariner and Bressay fields. text by: ARILD GILJA ag@offshore.no “We are going to a see strong growth in the UK up to 2014”, told regional director, Einar Holmefjord from INTSOK in Bergen Chamber of Commerce.

- Starvation for a long time “The UK oil industry has been starved for a period and has been quite unhappy with the situation.”

As many as 14 projects have DECC approved in 2010 to a total value of 80 billion Norwegian kroner. This corresponds to the four previous years combined. And there's more to come. For 2011 the estimate tells that 30 projects will be approved by the British approval authority.

According to Holmefjord the mood changed when the government granted a substantial package of tax credits. Each project could trigger 160 million pound. The package has already had a good effect on the number of new projects.

For the period 2011-2014, the list looks like this:

Statoil is investing 60 billion Holmefjord gave a lot of attention to Statoils’ two heavy oil-projects, Mariner and Bressay, where Statoil is operator with respectively 62 percent and 81.625 percent interest. British authorities and the supplier industry seem to be pleased that Statoil took over and has plans for rapid expansion.

- 10-12 fixed platforms. - 10-12 FPS projects. - About 30 subsea projects. - In addition a number of modification projects to existing platforms. “The world's fourth largest” “UK will be the world's fourth largest offshore market the next four years and the third largest export market for the Norwegian offshore industry”, the Regional Director told.

42 Offshore & Energy MARCH 2011

“Statoil took over as operator for Chevron who never gave these fields high enough priority in their system.“ Statoil plans to invest nearly 60 billion dollars on the two fields, but has plenty of time to earn

back the expenses. The fields will in fact produce for 40 years. Daily production will be about 60,000 barrels for Mariner and 50,000 for Bressay. The somewhat modest production is due to the fact that this is heavy oil.


OFFSHORE & ENERGY

“Giant Jackets“ “It will be built two giant jackets with topsides of respectively 24,000 and 20,000 tons. These will be the largest built for the UK shelf for many years.” The plan also includes building two drilling rigs on each field. In addition, a light intervention rig will be placed below deck on one of the platforms. The reason is Statoils’ high drill ambitions. According to plan will have 60 well slots and Bressay will have 40. Concept studies already completed Both concept studies are already completed. Aker Solutions delivered the first in late autumn for Mariner, while WorleyParsons followed on

with the one for Bressay. According to Holmefjord the feed contracts will be awarded in early spring for Mariner, while Brassey will be awarded later this summer. Now Statoil will mature their thoughts and will likely decide in February whether to invest and implement their plans. “If Statoil goes for it, the first contracts for long lead items will already go out this summer and autumn. So this is just around the corner,” he said. Aberdeen cheers In Aberdeen there was great cheering when Statoil announced to set up a major operations office with 500 employees.

“Buy a yard” Due to downfall of British shipbuilding industry, the oil companies go abroad with their larger construction projects. “Norwegian fabrication groups could capture a nice share of the growing market, by either buying old British shipyards or collaborating with British contractors.” text by: ARILD GILJA ag@offshore.no Britain got its manufacturing capacity sharply reduced 10-15 years ago. When the major projects that could have maintained the expertise disappeared, the large shipyards were closed down. There was no financial basis for further operation. Today the ten largest shipyards in the UK "only" sell about 450 million each on average, based on the last three years of trading.

Marino in Italy.

“However the massive development plans that were approved in 2010 and which under present plans will be approved in 2011, again require a much greater manufacturing capacity.”

4) Talisman Auk Redevelopment: Drilling modules went to Rosetti Marino.

“Not credible” “The large operators are reluctant to use British shipyards, and run rather to foreign shipyards as Dragados, Rosetti Marino, Saipem, Heerema, as well as shipyards in Dubai and Asia. Today there is no credible, major suppliers of topsides in the UK. Topsides are too big and complicated for them. They have been working on subsea tie-ins projects for nearly a decade. For larger projects the british yards have to cooperate," says Holmefjord.

Option 1: Buy yards “When the British now see a stream of new projects coming up, they have to turn around. Norwegian companies are therefore invited to come over and revive old shipyards. Groups like Bergen Group Rosenberg, Aibel and Aker Stord must realize that now is the time to act. They must carefully consider whether this is something to do.

2) RWE DEA on the Clipper South: A 1,700 tons topside and jacket were won by Heerema. 3) BP on Clair Ridge: Two jackets, respectively 22,300 tons and 9,000 tons went to Aker Verdal, while the topside modules probably will be go to Asia. 5) Talisman on West Franklin II: A 2800-ton jacket went to Saipem, Sardinia.

He refers to Claire project as an example.

Option 2: Cooperation “Norwegians could also seek cooperation with British suppliers in order to get a hand on the rapidly growing market”.

“On Claire BP divided the topside in as many minor modules that British industry was able to deliver.

“Why cooperation, Is not Norwegian supply chains credible enough to stand alone?”

The jobs the British lost This is a list of larger projects that went to foreigners:

“Of course, Norwegian supplier lines are credible. The many contract-wins for complete Norwegian supply chains, documents that fact. But still it is very difficult to deploy an entire Norwegian chain to a UK-job. The reason is that British operators by tradition purchase equipment that they have

1) ConocoPhillips on Jasmine: Two 6000-tons steel decks went to Spain, Dragados. One deck went to a yard in Dubai and three jackets to Rosetti

MARCH 2011 Offshore & Energy 43


He explains that on topside equipment, the operators often choose standardized solutions across their platforms. “Aker Verdal did it” However there is an Norwegian exception for jackets: “Aker Verdal managed to deploy its whole supply chain when the fabricated the jackets for Nexen’s Buzzard. This also seems to be the case for Clear Ridge, where Verdal now have two large jackets under construction. Despite Aker Verdals success on jackets, Holmefjord is convinced that Norwegians should cooperate with the British suppliers on topsides: “If Norwegians want to win a topside delivery, it will be an advantage to be oriented towards British sub-contractors.” “No local content“ Holmefjord denies that there are still official requirements for local content, such as in Brazil and Angola. However British authorities clearly appreciate that contracts also ends up on British hands, as our own government do. First register in FPAL The first step for a Norwegian freshman, is to register in FPAL (Editor: First Point Assessment Ltd), Holmefjord reminds. preferences for. Therefore, they probably will tear up a wholly Norwegianbased solution", says Holmefjord and mention topsides as a typical example.

“This is the first point where British operators check out possible suppliers, such as if they are able to fabricate modules of 10,000 tons. Then they will assess the financial soundness of the candidates and finally the companies them will be able to get onto the "bidders list".

A falcon’s view at the UK Norwegian yards confirm that they closely follow the British market. “We cannot say anything at this moment, but we careful evaluate what to do”, reveals Lars Eide at Aker Stord. text by: ARILD GILJA ag@offshore.no Aker Stord which has topside as its main product confirms that they follow the UK market with a strong focus. “It is exciting that the British industry again points upward. We screen the market on a monthly basis and is in regular contact with the oil companies ", says Aker Stord-chief, Lars Eide. When it comes to choice of strategy, whether to buy British shipyards or enter into partnership with British actors, Aker choose secrecy. “We cannot reveal anything at this moment, but we careful evaluate what to do. However, we do not exclude any options. He points to the fact that the Aker system earlier on has owned a shipyard in Britain, but that this has been history for a long time now. “I understand very well that the British want new activity at home.” Foothold Also her sister, Aker Verdal carefully follows what is happening over there. Not least, because the yard in the recent past, have gained a good foothold in the British market. Aker Verdal boss, Nina Udnes Tronstad says that they also see a great potential in wind

44 Offshore & Energy MARCH 2011

power the coming years. “Have you considered buying British yards?” “We believe that local content is an important competitive factor, but this can be created in many ways. Currently we have no concrete plans for any acquisition in UK. According to Udnes, Aker Verdal has for several years had a good relationship with British suppliers, and she emphasizes the importance of long-term relationship. “Our supply chain is global and we have good experience with both the Norwegian and international suppliers. The markets we operate in, is constantly changing, and long-term and predictable relations with our suppliers, will be very important parameters in the future”, she ends. “Not yet” Also Bergen Group has noted the change in mood over there.

follow it with the best of our ability. Any contract in UK will likely go to the Rosenberg yard which is the spearhead and driving force in Bergen Groups offshore business. Who should pay attention? Regional Director for UK in Intsok, Einar Holmefjord recommends a number of Norwegian shipyards and fabrication facilities to check out the growing possibilities over there: • Aibel, Haugesund • Aker Stord • Aker Verdal • Aker Solutions, Egersund • Apply Leirvik • Bergen Group, Rosenberg • Fjell Industrier • Grenland Group, Tønsberg • Grenland Group, Skudesneshavn

“We have cooperated with British suppliers a while, "CEO, Pål Engebretsen in Bergen Group states. But he will keep for themselves what kind of partnership this is.

• Gann Mechanical

“We have not considered buying British yards yet, however we are players in the market and

• NYMO, Grimstad / Eydehavn

• Langset Nord • NLI Alfred Andersen • Radøy Group


JuNE 6. - 7. OSlO - NOrWAy

WWW.EGC2011.COM

Come to the 16th European Gas Conference in Oslo and be enlightened by stimulating debates and round table discussions with energy industry experts, politicians and environmentalists – all trying to tackle the issues below. Session 1 : Bringing Norwegian gas to Europe Will Norway be a key supplier in the future gas supply mix in Europe? 2011 marks the 10th anniversary of Gassco. Session 2 : Natural Gas in a low carbon Europe Politically clean in Europe and dirty in Norway. Some say it is part of the solution, some say it is part of the problem. Session 3 : Gas sources – origin and use Can new sources of gas be unlocked? What is the potential in the European transportation sector?

Gas is a fantastic resource which must be recognised as a high-value natural product. It will most probably be the bridging fuel to an diversified, sustainable and affordable energy future with reduced global CO2 emissions. Idealists and realists may battle over our common energy future, and the debate will not be an easy one. But gas will be part of the solution.

The Norwegian Petroleum Society and the Norwegian Gas Association have been the proud hosts of The European Gas Conference since 1981. The biannual conference has all these years been a valuable meeting place for the European gas industry, underlining the importance of Norwegian gas exports to Europe. With the 16th conference, we are again pleased to invite you to Oslo where important issues related to the industry will be presented and discussed. Welcome to Oslo !

Organizer

The Norwegian Gas Association

Gro Mjellem General Manager Norwegian Petroleum Society

Sponsored by

december 2010 Offshore & Energy 45

Helli Grafisk - design og kommunikasjon www.helligrafisk.no

Brian Bjordal President and CEO in Gassco AS


>> reportage

MORE THAN PIPES AND TUBES The business community must take care of those who are left behind in the job queue, and Norwegian offshore companies have great opportunities abroad. If you can communicate those two facts to your readers I'm happy with this interview, says Tore Christiansen. text by: HELGE KEILEN hk@offshore.no He is clearly used to getting what he wants, the boy with the golden helmet. As the leader of a solid offshore supplier business, football and hockey donor and award-winning Pøbelchampion, and with a fortune of several hundred million kroner, he is by no means an ordinary entrepreneur. Ardent Manchester United fan and a personal friend of Ole Gunnar Solskjaer and recently the owner of a twice bankrupt mountain hotel in Sirdal outside Stavanger, he goes his own way. But it started with tubes, and even a little before. Actor Tore Christiansen (48) is an original Sandnesgjøk (cuckoo), as they call it there. His father was an ardent football fan, but young Tore’s career went in other directions. For ten good years, until he became 18, he was an actor and held various roles at the Rogaland Theatre, where he played against future Norwegian celebrities such as Mia Gundersen and

Johannes Joner. His favourite role was Chief constable Bastian in Kardemomme City and the Kardemomme Law has played an important role in his later life. He never became a professional actor, but only last year he played the Ice King in a Christmas performance at the Stavanger Concert Hall. Another important feature of growing up was that when he was seven years old, he had a brother who was partially disabled. This gave him an early lesson that we are not all equal, yet of equal worth. With this ballast, he graduated from high school and went directly into job life. Crazy young men He got a job in Stavanger Rørhandel together with Bergen Rørhandel had such a high market share in supplying of pipes and accessories that they blocked the other vendors who wanted to enter the Norwegian Continental Shelf. Tore started as "coffee maker, calculator and junior sales man" and rose quickly through the ranks. In 1991 he was approached by the world's largest producer of flanges, Italian Galperti, and together they started the company Scandinavian Fittings and Flanges (SFF). ”Galperti had factories, products and capital, and I had the market knowledge. After some years of sporadic orders from various customers, we got the breakthrough in 1994 with our first project contract. It was Phillips who was brave enough to bet on a newcomer in the market. But the real breakthrough came two years later, when Statoil went out to the market with five framework agreements. We were invited to bid on four of the packages, but when the big wholesalers saw this they formed a joint venture to offer on all the packages. The result was that Statoil invited the SFF to bid on the fifth package, too, and we made a clean sweep with large deliveries to the Asgard A and B projects and at the Kårstø plant. We were ten

46 Offshore & Energy MARCH 2011

men, young and crazy, and worked around the clock with IKEA beds in the office. We did everything ourselves, and sales rose, from NOK 28 million to 115 million the next year. When Johan Fredrik (Brandt) came straight from school as an economist in Oslo – who would eventually take over as CFO, he received last year’s invoices in plastic bags, to sort out. Although I regret not obtaining an education in economics, there are probably many things I'd never dared to do if I had been aware of the economic impact,” laughs Christiansen. Social commitment As managing director and major shareholder in SFF, Christiansen had the opportunity to do something for his brother. Their mother was a teacher and had decided that his brother should take the certificate. She read the entire tutorial to the driving license on tape and his brother passed the theory test and, with somewhat heavier resistance, the drivers test. "We employed him as a good old errand boy, where he is to this day drives around in the local area and delivers goods; he goes to the bank, to the Post office and runs other errands where colleagues may need help. At first he drove himself completely away, but today no one is better known in the local area than my brother. To me this is a confirmation that it is possible for anyone to perform meaningful tasks in everyday life, while simultaneously affecting the enjoyment factor and the human values of the company. Our recruitment policy may appear pretty special, but is quite natural for us. Today some 20 per cent of the staff is recruited from what we have chosen to call "the forgotten assets" - people with physical and / or mental handicaps. We work with NAV, Byprestene in Sandnes, Pøbel project, and Work with assistance, to name a few. We see the individuals and their needs and try to adapt and facilitate both tasks and working hours. Some


OFFSHORE & ENERGY

MARCH 2011 Offshore & Energy 47


>> reportage “I am convinced that the Oilers will compete at the top of their league and that it should be possible to make money on the investment, but it might as well be after 2020," says Christiansen. Photo: Guro Waksvik.

cannot answer to me why they do not do the same in other parts of the business sector and employers in general," says Christiansen. Sports fan Around 10 per cent of the SFF staff are recruited from sports. Christiansen welcomes young and promising hockey and soccer players to help in the activity peaks, and offers full-time jobs when their careers are waning. A former Oilers ice hockey player is now CFO for the company's branch in Sweden. And the Stavanger Oilers are, by the way, another of Christiansen’s flaming interests. "It started when my son started playing soccer and ice hockey. I love going to games and get an outlet for my feelings and was a sponsor for the Oilers when the club went bankrupt in the 03/04 season. When I saw the kids smash their saving pigs for the club to continue, I decided to step up the involvement. My demand was that the club would be run like any normal business, that all the paper work on employer liability and tax would be correct - and that we, together with Stavanger municipality should build a new Oilers ice hall. In the autumn 2010 the decision was taken and for the 2012 season a large multipurpose hall will be ready. I am convinced that the Oilers will compete at the top of their league and that it should be possible to make money on the investment, but it might as well be after 2020," says Christiansen. have started to work only one day a week - and maybe work for just a few hours - and then they gradually increase their hours towards a full day job and as a regular employee with full employment with us. No one is prouder than them to wear the SFF uniform! And no one is prouder than we are to have them here! We have a few stories that are not so bright; the biggest challenge is with former drug abusers. Some of them unfortunately do not master the everyday life and resort to old habits. We must of course have zero tolerance and it is always painful to acknowledge that we have to let someone go. The joy of success with this type of challenge is all the greater! Some might wonder how our recruitment policy affects our performance record. Well, sick leave was just under 3% in 2010. Measured against average in Rogaland and Hordaland, which is respectively 4.5 to 6%, we can safely say that our recruitment plays a positive role! I lecture a lot on this subject in several forums. Most of the people I talk to are all enthusiastic, but they

48 Offshore & Energy MARCH 2011

His sports interests have led into other exciting alleys. In 2000 he started together with the Norwegian Manchester United player Ole Gunnar Solskjaer and his manager Jim Solbakken the company Dynamic Solutions. The company has since split into two; the travel agency Travelnet Stavanger which currently employs 12-15 people and sells for an impressive NOK 120 million a year, and the agency/consulting company Solution that sells football players. Here are naturally Ole Gunnar Solskjaer is no longer co-owner because the rules of the Norwegian Football Association. Solution is now a well-known football agency, which has been responsible for most of the transitions of players to English football (Eikrem Dioff, Lindegaard, Nordtvedt, to name a few) in recent years. The travel agency is known for package tours to Old Trafford, home of Manchester United, where Christiansen has his own box, but which he has visited only two or three times.

”I like it best when I smell the sausages from the inner court,” Christiansen says with a smile. Fluctuations in pipeline No matter what activities he engages in - horse racing is another favourite - SFF still takes most of his working day. Although he wants to gradually reduce his own importance, it is often Tore the customers want to talk to, if only out of habit. "For me, SFF is the locomotive. The company now has about 10,000 articles and a stock value of NOK120 million. But like most others we find that the oil industry is heavily fluctuating at times. We got the first down in 1998-2000 and now again 2008-2010, which were pretty awful years. Turnover fell from NOK 1.4 billion to 600 million in a couple of years, and we had to terminate 5-6 employees. Fortunately, we do not only depend on the Norwegian continental shelf. Over the years we have grown significantly abroad and we now operate from nine countries. It started in Denmark with delivery to Maersk and DONG and has since evolved in countries like Sweden, Finland, Canada, Malaysia, Singapore, Vietnam, Australia and last but not least China. In connection with our project agreement with Aker Solutions at the Kashagan field, we established ourselves in 2009 with our own sales office in Almaty, Khazhakstan, where the former cross country ski king Vladimir Smirnov owned half. But this is now almost history. The regime is not amenable to our type of business. But we have mostly succeeded in our foreign ventures and, best of all when we can come in the wake of companies like Aker Solutions. To us they mean much more than Statoil. Total turnover is now about 40 percent international, with the goal of 50/50 shortly. Norwegian companies have a competitive advantage and we should be proud of the NORSOK standard, which is becoming more accepted abroad. The downturn comes Tore Christiansen is by nature optimistic, and now he sees some really good years for the Norwegian offshore industry. But after two massive lows over the past 10-12 years, he knows that the third downturn will come, and he'll be prepared for this. "We tend to forget in the oil industry, but with a bottom line of 3-5 percent, we must constantly be on the alert. The greatest danger for a trading company like ours is to become fat and happy. We must not go bananas because we have some good years ahead, but adjust operations to last for the next 10-15 years. On the other hand, the world has never used more valuable metals and Norway has a good expertise on the use of these," says Tore Christiansen.


Utgave nr.2 - 2011 Publiseres 22. mai / materiellfrist 20. april Offshore & Energy er det eneste energi-magasinet i Norge som er medlem av Fagpressen innen kategorien olje og offshore. Gjennom vårt medlemskap i Fagpressen kan våre annonsører være trygge på at vi oppfyller kravene til mediers faglig-etiske standarder, blant annet med tilslutning til Redaktørplakaten, Vær Varsomplakat og Tekstreklameplakaten. Med over 10.000 godkjente adresserte abonnenter, og et distribusjonssamarbeid med Achilles, SPE og NPF, når våre annonsører beslutningstakerne på norsk sokkel. Offshore & Energy kan også leses i sin helhet på Offshore.no - Nordens største nettavis innen olje, gass og energi. Faste kategorier i Offshore & Energy: Exploration, Rig market, Contract cuttings, Norwegian technology abroad, Subsea, Field development, Maintenance & modifications, Recruitment, Renewable energy og HSE.

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OFFSHORE & ENERGY

PROFESSOR EMIRATUS "Professor Berteussen? We have no one by that name here". A stressed receptionist scrolls through the list of employees at the State Petroleum Institute in Abu Dhabi. When we insist on having an interview appointment with Professor Karl Berteussen, the man shines up with a happy smile and exclaims: "Ah, you're visiting Doctor Karl!" Abu Dhabi: HELGE KEILEN hk@offshore.no The state oil company ADNOC in Abu Dhabi possesses nearly 8 percent of the worlds proven oil reserves and is has the fourth largest oil and gas reserves (after Saudi Aramco, the Iranian state oil company NIOC and Qatar Petroleum). The first oil was discovered in the area in 1958, while the state of the United Arab Emirates was not formed until 1971, and is thus only 39 years old. The emirate of Abu Dhabi has 95 per cent of the emirates’ oil reserves. The job of building up its infrastructure and expertise has been long and steep, and this is where Karl Berteussen from Sørreisa in Troms comes into the story. He is probably the Norwegian with the closest contact with the owners of the oil industry in this important part of the world. Viewed from its current point at the age of 65, his career development may appear rather natural. He started as a researcher at the Norsar, obtained position at the University of Oslo in 1979 and followed his own students into the oil industry. He worked as section head of geophysics in the long-gone oil company Saga Petroleum, and then spent several years in managerial positions in Read Well Services and PGS Reservoir, while he maintained a position as Adjunct Professor at the University of Tromsø. The last seven years he worked for PGS from Houston. Moving to a warmer climate was not just an academic choice, but also medical. According to Berteussen “all elderly people from Northern Norway have gout problems and need warmth.” So in 2003, when the choice was between retiring and taking one last mission to a warm place, and the Chair in Abu Dhabi became available, he accepted on the spot. What originally was supposed to be three years has currently become seven, and from being a mere professor, he once again has become an administrator and is now responsible for the development of ADNOC's new petroleum research centre. Following Norway Blue eyed, friendly and large framed, he

receives us in his 40 metre square office on the third floor. Beard and hair has greyed graciously since we last met him, and he laughingly states that in this part of the world grey hair is treated with respect. He has been a key figure at the Petroleum Institute in three-quarters of its decade-long lifespan and is thus an institution. Currently he is the only employee of ADNOC-PI Research Centre, but he is busy recruiting and suggests that anyone of our readers may feel free to contact him in this respect. This prompts us to ask him what about the main differences between the Norwegian petroleum industry and

percent are from the Emirates and after graduation everyone is guaranteed a job in one of the five oil and gas companies, which together form the ADNOC with its 26,000 employees," says Berteussen. Goodwill Berteussen’s Norwegian experience was crucial in getting the job at a university where the 300 employees now come from 50-odd nations. He learned that the ADNOC CEO, HE. Yousef Omair Bin Yousef, is very impressed with the Norwegian oil industry. But when Dr. Karl last year introduced INTSOK to him Bin Joseph,

<<Abu Dhabi has 10 times greater oil and gas reserves than Norway, and there is a strong desire to develop this with indigenous resources.>> the Emirates. "In Norway we have been lucky and clever. Our advantage was that we already lived in an educational community with scientists, engineers, lawyers and geo-experts and had considerable experience in the maritime industry. Being only 39 years [old] the Abu Dhabi government is younger than the Norwegian oil adventure. Before oil was found there was only desert. But Abu Dhabi has 10 times greater oil and gas reserves than Norway, and eventually there was a strong desire to develop this with indigenous resources. The vision of our university is to train local forces to assume responsibility for the development of the country's oil industry, like we originally did in Norway. We have 1000 students of which 70

although admitting that Norway is leading in technology, explained that Abu Dhabi had its own oil fund before Norway and that it is considerably larger than the Norwegian! The accumulation of knowledge and technological understanding is important for the owners of ADNOC. The Norwegian authorities introduced Goodwill agreements in the 1980s and the early 1990s, where the oil companies earned goodwill from the government for investing in the Norwegian industry. In the late 1980’s Berteussen persuaded Elf to sponsor development of downhole measurement equipment. Now Berteussen has been central to initiating a similar goodwill system for foreign oil companies willing to work in Abu Dhabi.

MARCH 2011 Offshore & Energy 51


>> reportage ”A few months ago Shell and Total accepted to pay 5 million dollars per year for 20 years to the Petroleum Institute in connection with a long term contract with GASCO, the national gas company. As chairman of the company’s management committee that manages the money, I experienced that the oil companies’ first question was "Who do we send the checque to?" My answer was that the goodwill should also include the transfer of experience and exchange students, and that the main goal in this case is to help the national gas company to develop the relevant technology. They were a little surprised at this somewhat unexpected answer from the blue-eyed Norwegian”, laughs Berteussen. Norwegian opportunities As head of research Karl Berteussen communicates with all managers in the ADNOC system, and he promotes his Norwegian heritage. On the office wall hangs pictures from Northern Norway under the midnight sun. The fact that the sun disappears in winter and never sets in the summer is mysterious information for Arabs who are familiar with 50-degree summer heat from the sun in its zenith. He believes that Norwegian companies have ample opportunities here. ”Abu Dhabi has 95% of the oil in the Emirates and the market is two to three times larger than the Norwegian. Production is split 50/50 on onshore and offshore, but with water depth of around 10 meters there are quite different challenges than on the Norwegian Continental Shelf. Besides, the Emirates have traditionally been heavily reliant on the United States oil expertise with research projects and exchange students. Statoil has had an office in Dubai for several years but it has recently opened an office in Abu Dhabi, and it will be interesting to see what they can achieve. A general advice is that one must be prepared to remain in the region for a period of time before starting to do business. From my time in Read I remember that we came here with colourful overheads and gave a speech about our excellence before returning to Norway after a few days. After this nothing happened. You can have the best technology and experience and the Arabs may seem positive, but without establishing a local office and being willing to live here, you achieve nothing," says Berteussen. Doctor Karl When Berteussen and his wife Vibeke established their first home in Abu Dhabi in 2003, they did something unexpectedly. "We have been living in Moscow, where we had many friends, and Houston, where we in seven years got a lot of Norwegian friends, but hardly visited the house of an American family. Abu Dhabi is a young country based on a tribal

52 Offshore & Energy MARCH 2011

Karl Berteussen has become a popular professor in Abu Dhabi; here he recives a gift from ADMA CEO Ali Al Jarwan.

society. We wanted to get closer to this and avoided the concentration of foreigners who live in the central city of Abu Dhabi. We decided to move into the desert, where we almost instantaneously were adopted by a local family. In this context it is good to settle down here with your wife. I have seen many examples of single men who use more and more time at the bar in the afternoons and evenings. My wife has been invited to 20-odd weddings already, where only women are present. This division between men and women may appear a bit strange for us Norwegians. At the university women wear a black headscarf and only in master classes can they share a class room with male students. A bachelor's degree is four or five years, depending on the background and a Masters, to which the university received accreditation in 2010, is two years. But one thing is crystal clear: Even if you belong to the sheikh’s family, you will not get any special treatment at this university," says Doctor Karl. Fast development Many conditions are different here than in Norway, he observes.

and you will probably find that the difference is not that great. Moreover, the development goes tremendously fast in this part of the world. When I came here there was no question of having women in the field. Now this has started. As research director, I guess that in 10 years we will see more women in oil-related research than men. Being an Arab country Abu Dhabi is a very tolerant society, you do not see much fundamentalism and a long beards in the streets here," says Berteussen. Do not stress Karl Berteussen has never learned Arabic and any potential impatience he has left back in Norway. The Arabs have a phrase called In'shallah which means something like that "if God wills" and this is interpreted in many different ways. The meetings start here mostly according to the agenda, but if my boss is requested from his boss, our meeting is postponed indefinitely. One of my biggest cultural experiences was during Ramadan, when the leadership in ADNOC was invited to a meeting with Crown Prince Mohammed. We all sat on the floor in a circle around the crown prince, who gave messages to the audience in a low voice. I do not understand Arabic, but I quickly realised his authority, however,” says Berteussen.

”Several parents of students can neither read nor write, and one of the students was a shepherd in his childhood. They are smart enough, but must often be almost forced to read books and many read slowly. My motto to them is: "Read anything, but read more!" To a student, I gave the book "Call of the wild" by Jack London. He came back and said that the book had changed his life. It was the first time he really had lived himself into a written story!

What awaits him in the future? On the way to the 70 Berteussen admits that he does not do long-term plans. When not enjoying days in the heat, he uses his allotted 60 days per year in Norway to visit the family estate that he owns in Sørreisa, or the house in Paphos, Cyprus (according to him the warmest and driest place in Europe). He has also been in contact with "Geophysics Pioneers", 12 old guys with names like Anders Farestveit, Kjell Arne Oppebøen and Olve Torvanger, who meet together regularly to reminisce about past victories.

I came to this part of the world with a preimpression that Arabs are hard people. It is not true. They are often soft and vulnerable. Female suppression? Think back to how your grandmother and grandfather worked together,

How long he will be in Abu Dhabi? Even he does not know. But he is committed at least to include the initiation of construction of the new research centre which will start this summer. In'shallah!


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Ta kontakt i dag med salgssjef Marius Ulstein-Brokner på telefon 480 27 400 eller e-post mub@apdm.no


>> reportage

What’s ticking on the Norwegian shelf? The Norwegian shelf seems to be described by problems these days. Is it justified, or can we hope to achieve more during the next decades? Guest writer: OLE EVENSEN partner PwC

In spite of improvements in several areas, like operations, maintenance and modification – the financial impact do not match the decline in production. The unit lifting cost continues to rise, margin drops - and the economic lifetime of producing assets is shrinking. It’s tough to be a “mature” asset. Increasing demands for maintenance and life extending modifications are causing big problems. There are, however, several promising achievements and trends. Developments in drilling, field development and operations are world class. The achieved production is as an average 60% above the initial PDO estimates. Some old assets aim for recovery rates in the seventies. Our oldies are industry leaders. Oil mosquitos Focus on improvement must not take the attention away from finding better ways of doing what we do today. Operators must find a balance between doing things right – and doing the right things - that match their real field challenges. Innovation is required when improvement is insufficient to extend assets life expectancy. New concepts, like unmanned, remotely operated or topside as subsea becomes a lot more acceptable when the option is a premature exit. Innovation is necessary to justify smaller size, remote and even arctic fields. Which companies are best suited to develop and realize new opportunities? The debate is fuelled by the distribution of assets between operators, and in particular Statoil’s dominant position. Is the imbalance slowing down development of new fields? Are the knowhow, capabilities, and capacity proportional with the distribution of licenses? The discussion will not shift the current license distribution, but may be of interest to how future licenses will be awarded. The new small and lean operators – coined the “oil mosquitoes” - have some unique strength, which may be rewarded – if leveraged. While they are new, their human resources are not. Their experienced teams have mixed operator

54 Offshore & Energy MARCH 2011

backgrounds and may be less prone to “group thinking”. They can consider prospects without the burden of legacy - or bias to how things should be done. Fast track not new Fast track concepts have got a lot of attention, but the ideas are far from new. Besides, the real custodians of fast-track capabilities are not the operators, but the major engineering and construction service providers. They do not discriminate, but serve both large and small developers. Maybe the real value large operators can derive from their fast-track programs is an opportunity to revise their internal investment and development processes that we developed for different times and challenges. The quality of future PDO’s and the time from PDO to Production will show whether the mosquitoes can match the giants. Maybe the playing field of future developments is more even than expected. Gassco and Petoro There are disadvantages of being new and small. Tying the knots with an ageing tieback partner involves risks. The tieback hosts’ life expectancy versus own ambitions can illustrate this. Any initiative that improve infrastructure availability and cost predictability, even beyond assets abandonment will increase the probability of new fields being developed. It would benefit both large and small operators, and should be a key topic for the petroleum authorities. Gassco and Petoro have different but complementary capabilities, and may play an increasingly important role in future development. As architect of transportation infrastructure – and stakeholder in most field developments - they have perspectives beyond the individual operators’ agenda. Given the necessary means and mandate they may influence even more the value creation from both mature and new areas. The key is orchestration of individually small – but collectively significant - developments.


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>> subsea

Upcoming subsea boom down under Australia could become the next gold golden market for Norwegian suppliers. text by: JOHN ØKLAND jo@offshore.no

“Australia provides great opportunities for Norwegian subsea players, "says Managing Director of NCE Subsea, Trond Olsen. (Photo: John Økland) Anja and Olaf Bilsbakk Brakstad, ClampOn and Arne Riple, Aker Solutions were all present at the Australia Oil & Gas in February. (Photo: Trond Olsen / NCE Subesea)

The Subsea market in Australia is very good in the coming years, according to multiple reports and sources. By far the largest from 2013 According INTSOK and Rystad Energy Australia will be the largest subsea market from 2013. From 2010 to 2018, the number of trees installed almost triples and forms the basis for enormous business opportunities on the seabed.

INTSOK´s annual market report 2010-2014, created by Rystad Energy, shows that the market is $7 billion in 2013 and 11.1 billion in 2014. By comparison, number two on the list in 2013, the UK, will be $4.6 billion and in 2014 the U.S. GoM $6.9 billion, according to the report. “The industry and the government are very optimistic when they see the development in the future for Australia. They can not see any dark clouds in the sky - except for a shortage of skilled labour which could trigger problems with higher wages", says General Manager of the subsea cluster NCE Subsea Trond Olsen. He has just returned home after participating in the Australia Oil & Gas & exhibition conference. According to Olsen 15,000 people visited the exhibition and 240 exhibitors. About 30 of the exhibitors were from Norway. Need to build quickly Australia is experiencing a major oil production decline. Gas production will go in the opposite direction. But the development of the petroleum industry has gone slow because of the mining industry that has been strong. Now the focus is on gaining momentum in the oil and gas operations. “It is very extensive to build up a smaller industry to very high activity in such a short time. One should remember that even if we think of Australia as a country, the distances are very large. They do not have the infrastructure in form of bases and ports, as we have in Norway”,

56 Offshore & Energy MARCH 2011


OFFSHORE & ENERGY

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exemplifies Olsen. The heart is in the northwest The largest geographical area of activities is in north west of Australia. Several major developments are creating the country's subsea core. Large areas of the Greater Gorgon in front, are creating tremendous activity in the Northern Carnavon Basin. Only the Greater Gorgon development has a capex of $43 billion.

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MARCH 2011 Offshore & Energy 57


>> field development

Rystad

Torstein Sanness

Investment boom ahead There were many plans in the billion size during this year's NOC conference, but supplier squeeze and increased costs could limit the investments. text by: GLENN STANGELAND gs@offshore.no photo: ELISABETH H. KOLSTAD

JOHN BRADBURY jb@offshore.no

Rystad Energy has previously predicted an investment boom on the Norwegian continental shelf. At the NOC conference, partner Jaran Rystad presented a list of projects which the company expects to be put into production on the Norwegian continental shelf by 2018: New platforms: Yme, Gudrun, Valemon, Ekofisk living quarters platform, Eldfisk II, Ekofisk South, Hild, Dagny / Ermintrude Tommeliten Alpha. "In addition, we were told that new platforms were a possibility on both Snorre and Gullfaks during the NOC conference," said Rystad. Floaters/FPSO: Gjøa, Skarv, Goliat, Frøy, Jordbær, Draupne / Hanz, Bream, Luno, Luva, Snorre New, Gullfaks Sør, Grosbeak, Beta / Zeta, Peon. In addition, around 50 subsea projects, including Statoil's fast-track projects, Morvin, Vega, Trym, Oselvar and so on. New platform capabilities New wellhead platforms could be the solution to recover

58 Offshore & Energy MARCH 2011

STEIN TJELTA st@offshore.no

more oil from a range of fields. License director Tor Rasmus Skjærpe in Petoro pointed to Snorre, Gullfaks and Heidrun as candidates. If Petoro's suggestion goes ahead, there could be two new wellhead platforms on Snorre, as well as two on Gullfaks and Heidrun. According to Skjærpe, a a decision must be made within a maximum of five years. Fast track Statoil's fast track projects also received a great deal of attention. Statoil currently has 60 field development projects ongoing, which is four times as many as ten years ago. Half of these are small field developments, the other half are projects in enhancing recovery. An increasing share of the company's future field developments will be fast-track projects. The first four projects, PanPandora, Katla, Vigdis Northeast and Hagrid, will pave the way for the group's continued


OFFSHORE & ENERGY

Erik Haugane

commitment to fast-track developments. The next three fast-track projects are Fossekall and Dompap north of Norne ship in the Norwegian Sea and Vilje Sør near the Marathon-operated Alvheim field in the northern part of the North Sea. And more are in progress. "This is a new way of working. The ambition is to start production two and a half years after a discovery. But costs has to be reduced by 30 per cent, and standardisation is the key to achieving this. The areas that are prioritised are Sleipner, Oseberg, Snorre, " said Gjertsen. Ten billion Troll compression The 3rd and 4th stage of gas compression on the Troll field is one of the major ongoing modification jobs. It includes a module for 4000-5000 tonnes, and an extensive integration work on Troll A. A realisation decision is planned during 2011. "This is a 10-billion project," said Gjertsen. Shell wants new exploration areas Shell in turn called for new exploration areas. "We are pursuing oil and gas in the same areas as in 1994," says Shell. Gaining access to new exploration areas is becoming increasingly important as production falls and producing fields are approaching shutdown. Director of Exploration and Production, Shell, Grethe Moen, pointed out some of the hard facts in Norway. "We are still searching for oil and gas in the same areas that were opened in 1994 - that's 16 years ago," she said. "It could take 15 years from opening a field to the start of production. The future lies in the closed areas, which are vital for our jobs and

high living standards, "she says, adding that there is enough ground for the opening of the prospective areas in Nordland VI and VII as well as in the Barents Sea. But Shell will invest tens of billion kroner in the Ormen Lange field in the coming years. The company plans to install the world's largest subsea compression facility at a cost of 38 billion, but first a smaller version will be tested with the tests beginning next year. Shell considers expanding the Linnorm discovery in the Norwegian Sea together with Statoil's Luva discovery. This will require a new gas pipeline to NKr 9 billion, which will extend from these two fields and to Nyhamna. In addition, naturally, there will be tens of billion investments on developing Linnorm and Luva. Transferring gas from the Norwegian Sea to the shore is likely to require major investments in Nyhamna. So far, the companies have identified a need for increased gas compression capacity. Only this will require several billion in investments. Will tie-in Jetta to Jotun Det norske confirms that the company plans a tieback solution of Jetta towards Joutun: "The discovery is smaller than we hoped for. It is near Jotun, so we hope to reach an agreement with ExxonMobil which will make Jetta fly, "said Det norske CEO Erik Haugane. Wants to grow in Norway GDF Suez will continue to invest. Since 2001, GDF Suez has invested 18 billion dollars on the Norwegian Continental shelf. The company promised to continue its investments in Norway during the NOC conference. "We have invested a lot of money in Norway, and we are prepared to do the same in the

MARCH 2011 Offshore & Energy 59


>> field development

John Whelan

future, "said Terje Overvik, managing director of GdF Suez E & P Norway. Next year, the company will drill an exploration well on the Heilo propspect in the Barents Sea. This is north of Snøhvit, and if is is a commercial discovery, it may be tied into Snøhvit. Total increased focus on Norway Hild and David have opened Total's eyes on Norway again. The company will award contracts for the platform and chassis on the Hild field next year. Preparing for the Hild development, and David discovery set for a fast-track slot, Total has two developments underway on the Norwegian shelf. The operator is also looking forward to an exciting exploration well in the Barents Sea next year. Chief of operations, Tore Bø, admitted that Norway has not topped the French company's list in recent years, and that there was not much activity in the past year's license rounds, but after two successful discoveries in 2009, the company will focus on Norway again. Total believes Hild contains 150 million barrels of oil equivalent and that it will require 12 wells. The company is considering a wellhead system and a production platform. This could include a topside of 12,500 tons and a steel chassis of 8500 tons to be installed at 115 metres depth. In addition, the field will require an FSO that can treat the high CO2 content. Total aims for Hild to come onstream in 2016 and to submit a PDO in the fourth quarter of next year. The contracts for the topside and

60 Offshore & Energy MARCH 2011

jacket will be awarded in 2011.

and Grosbeak late this year and early next year.

David discovery The David discovery contains 15-20 million barrels of oil equivalent, consisting mainly of gas with some condensate. The discovery is a subsea tie-in via Byggve to the Heimdal platform. Production start is planned for 2012.

"We consider both stand-alone and subsea tie-back for the Grosbeak," Wintershall said Schrimpf.

Norvarg in the Barents Sea is scheduled to spud in May next year. Total Norway is the operator with 40 per cent. Det norske has 20 percent, North Energy 20 and Rocksource 20. Wintershall’s Maria could be fast track Wintershall also revealed possible strategies for one of 2010's largest discoveries, Maria. The company is considering a tie-in from Maria to an existing platform. "Åsgard is the most likely option. But Heidrun is also a possibility, "said Schrimpf. "Could Maria be a fast-track project?" "If there is spare capacity on an existing platform or we find other synergies, it might be a possibility. But if we do an appraisal and find that reserves located in the upper part of the original estimates, can also be a stand-alone development be appropriate, "said Schrimpf. The size is estimated at between between 60 and 120 million barrels. Grosbeak can be stand-alone Wintershall has an investment budget in Norway and parts of the UK for around eight billion over the next five years. The company aims to develop Grosbeak or Mary during this period. The company hopes to extend its reserves further when it drills appraisals at Gnatcatcher

Lundin spends 1.2 billion on exploration Swedish Lundin will spend approximately 460 million on field development and 1.2 billion on exploration in 2011, according to CEO Torsten Sanness. Lundin boasts a success rate of around 45 per cent when it comes to exploration. Sanness thinks courage and a good system, explain the success. "Exploration is exclusively a data-driven activity for us. We like proven systems and make use of them. At the same time we dare take a chance alone at the prospects we believe in and then find partners along the way, "said Sanness. Appraisal ahead The delimitation of the biggest discoveries, Avaldsnes, starting with the rig Bredford in March. The rig contract is for two wells, with an option for a further two. Lundin is aiming to search its way to the top elite on the Norwegian continental shelf, not to buy its waythere. "We are focussed and will concentrate on three areas on the Norwegian Continental shelf, Greater Luno, Greater Alvheim and the Barents Sea, "said Sanness. The company also has ambitions to put a new field into production each year. Peik, Nemo, Krabbe and Gaupe are next.


OFFSHORE & ENERGY

Grethe Moen

Nemo and Krabbe will probably be developed together, but these projects show how difficult it is to start production from small fields when you do not own the infrastructure yourself, "said Sanness. 2007 cost level Statoil and Rystad Energy stressed that the capacity in the supplier industry can be a problem. Statoil has ambitions to keep the cost down even if the workload for the supplier industry is expected to increase substantially in coming years. "We are already at the same cost level as in 2007. It will be a challenge to keep costs down, but we believe it is possible. But it is important that the entire industry in recognising the challenges we face. Industrialisation and standardisation are key elements if we are to succeed, "said Vidar Birkeland, head of procurement in Statoil, the NOC conference in Stavanger. The goal is to lower the break-even price so that more projects can be realised. The introduction of performance contracts, challenge their own standards and a good working relationship with the supplier industry was mentioned as measures to keep prices down. Predicts capacity problems Rystad Energy believes that the capacity in the supplier industry becomes the limiting factor when it comes to the number of developments. "In 2007, the supplier capacity was the

bottleneck, in 2008 and 2009 the bottleneck were the oil companies' organisation and the lack of cash supply. In 2010 we had a balanced situation. It's almost too good to be true, and we think it will not last forever. We believe that vendor capacity will again be the biggest bottleneck in the years to come," said Rystad. What about quality? In the record year 2008, before the oil price plunged from record high levels and the financial crisis, there were wild conditions in the industry: in short, this period was characterised by galloping supplier prices, drilling rig competition, personnel with high qualifications and licenses. Prices rose so fast that industry was alarmed, and Petoro director Kjell Pedersen said he had never experienced anything like it. The price was one thing, but the quality went the opposite way.

long term investments will decrease dramatically, if new exploration areas aren't opened soon.

FACTS

The Norwegian Operators Conference (NOC) is an annual conference that was started in 2003.

Originally presenting the newcomers on the Norwegian Continental Shelf, NOC has gradually become a forum where the key NCS operators present their plans and perspectives for the coming year.

Held in the scond half of November, the conference is thus right on target for disclosing investment levels and plans for the coming year.

In 2010 the NOC conference gathered some 300 participants.

Most famous is the episode where the wrong alloys in pipe that was installed on a number of Norwegian oil installations. There was also a battle for the rigs, for "everyone" wanted to drill new wells before the oil prices reached record levels. The industry also experienced cannibalisation by the oil companies who over bid supplier firms in the battle for the best minds. The result was also wage spiral. There was also fierce competition for stakes in both producing fields and the licenses that approached the production stage. Are there other dark clouds in the sky? Yes,

MARCH 2011 Offshore & Energy

61


>> field development

Pathfinder points to potential projects Project Pathfinder, a UK government backed scheme to provide higher visibility for the energy contracting community shows, 11 further projects which could come to fruition on the UK Continental Shelf. text by: JOHN BRADBURY jb@offshore.no Nexen UK and Valiant Petroleum each have three potential developments waiting to be tapped, while others discoveries identified within the scheme come from Hansa Hydrocarbons, Hurricane, Ithaca, Nautical Petroleum and Shell. Only Nautical’s Kraken discovery in UK block 9/2 has a target first oil date slated for the fourth

quarter next year - while Nexen’s Blackbird development is to come onstream this year, as a tieback to the Ettrick field FPSO, the Aoka Mizu. On the other discoveries, a first production date is either unknown or still to be decided. But the list clearly signals the fact that the UK’s Department of Energy and Climate Change is keen to show contractors where future

business opportunities could be found. Nexen’s two other potential developments are Blackhorse, in block 15/22, and Bugle, in block 15/23, which both lie in water depths of between 130 and 150 metres (426 - 49 2 ft). Valiant’s trio of potential projects are all in the Northern North Sea, and comprise Banquo, in block 211/8a, Helena in 211/13a and Tybalt, also in 211/8a. Hansa Hydrocarbons is has the Thoresby gas and condensate discovery to consider in block 48/16b which is 12 kilometres (7.5 miles) southwest from the Lancelot and Guinevere gas fields - well within tieback distance.

Centrica's York gas development will see another new normally unmanned wellhead platform built by Heerema in Hartlepool in the UK to tap the Southern North Sea field. Image courtesy Heerema Fabrication Group B.V

Hurricane has the 205/21a Lancaster oil discovery to tap, in a water depth up to 190 metres (623 ft). Ithaca’s Harrier gas and condensate discovery lies in block 30/6 in up to 90 metres (295 ft), and Shell has the Puffin condensate discovery to consider, in block 29/5a, which is slated for first production in 2015.

OPERATOR

PROSPECT Location Field type First production First production Other information

Hansa Hydrocarbons

Thoresby

48/16b

gas condensate

tbc

20 -30 m

Hurricane

Lancaster

205/21a

Oil

tbc

150 – 190 m

Ithaca

Harrier

Block 30/6

gas condensate

tbc

80- 90 m

Nautical Petroleum

Kraken

Block 9/2

Oil

Q4 2012

110- 120 m

Nexen

Blakbird

20/2a

Oil

2011

110-120 m

Potential Ettrick tieback

Nexen

Blackhorse

15/22

Oil

tbd

130 - 150 m

Options being considered

Nexen

Bugle

15/23

Oil

tbd

130-150 m

Options being considered

Shell

Puffin

29/5a

Condensate

2015

90 – 100 m

Options being considered

Valiant Petroleum

Banquo

211/8a

Oil

Not known

300 – 310 m

Options being considered

Valiant Petroleum

Helena

211/13a

Oil

Not known

160 – 200 m

Options being considered

Valiant Petroleum

Tybalt

211/8a

Oil

Not known

300- 310 m

Options being considered

62 Offshore & Energy MARCH 2011

60 km due north of Bacton and 12 km southwest from Lancelot and Guinevere


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>> field development

This schematic shows how the Golden Eagle Area Development could look by the time it comes onstream: Image courtesy Nexen UK.

Golden Eagle to fly with twin platforms Nexen’s UK North Sea Golden Eagle development will see a major new offshore twin platform complex and two subsea drilling centres with up to 24 wells. text by: JOHN BRADBURY jb@offshore.no Production from the Golden Eagle Area Development – now referred to as GEAD by Nexen – will be processed at a major new central platform complex and the project involves tapping two fields, Golden Eagle, and Pink, just north of Nexen’s Buzzard field in the

64 Offshore & Energy MARCH 2011

Central North Sea spanning blocks 20/1N, 20/1, and block 14/26a, about 70 kilometres (43 miles) offshore from the UK east coast in the North Sea. One of these new platforms will be a wellhead facility, which is to be linked via a 70-metre

(230 ft) bridge to a major production, utility and quarters (PUQ) platform. Both will stand on new steel jackets. Current planning by Nexen indicates that the PUQ will handle all processing for Golden Eagle field fluids, and will also provide utility systems


OFFSHORE & ENERGY

and accommodation. This facility will receive output from the new wellhead platform, and from two subsea drill centres to the north and south. Nexen is considering two oil export options for the project: Either into the Forties Pipeline System using a possible tie-in at Nexen’s Buzzard field, which will require a new 20 kilometre (12.5 mile) pipeline, or through the Claymore field to Scotland’s Flotta terminal – which requires installation of a new 75 km (48) mile pipeline. Gas will be exported to into the Scottish Area Gas Evacuation (SAGE) pipeline via a new 16.75 km (10.5 mile) export line to an Ettrick field pipeline end manifold, A schematic of the development shows a northern drill centre manifold located 5.2 km (3.25 miles) north of the main field complex with six slots – four for production and two for water injection, with two wells to be used initially: One for will be for production and the second for water injection. At the southern manifold, 3.9 km (2.43 miles) from the main platform complex, there will be a four-slot drilling template with two production and two

injection wells. Initially one producer and one water injector will be used there. “Pipeline and subsea structure installation operations are anticipated to start in early 2013, and take approximately eight months,” Nexen indicates in an environmental impact statement on the project obtained by Offshore.no/ international. “The installation of the platform complex will take place in stages between second quarter 2013 and third quarter 2014,” the operator indicates in the EIS, and continues: “Drilling operations will commence in late 2013 and will continue over a period of approximately three years. First oil production is expected in [the] fourth quarter 2014, with oil production at GEAD expected to peak between 2016 and 2018, with a maximum production rate of 70,000 bbls [barrels] of oil per day.” As part of the project evaluation process, Nexen says it has worked on a new drilling specific oil pollution emergency plan, which will have to be approved by the UK’s Department of Energy and Climate Change. “A Golden Eagle Area OPEP will be prepared

and will include emergency planning for the GEAD production activities,” Nexen indicates. “The OPEP will detail responsibilities for initial response and longer term management and will be submitted to DECC for approval prior to start of production at GEAD. In addition, Nexen has access to specialist emergency response services provided by Oil Spill Response (OSR) and are members of the Oil Pollution Operator’s Liability Fund (OPOL).” Field life for Golden Eagle is put at 25 years. Nexen operates the development, partnered by Maersk Oil North Sea, Petro-Canada UK and Edinburgh Oil and Gas. Table: Golden Eagle partners: Company 20/1 Pink area

Block 20/1N Block 14/26a

Block

Nexen Petroleum UK 46% 100%

34%

Maersk Oil North Sea 15%

36%

Petro-Canada UK

25%

33%

Edinburgh Oil and Gas

5%

6%

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MARCH 2011 Offshore & Energy 65


>> field development

Gro Brækken, boss in Oljeindustriens Landsforening (OLF) Photo: OLF

OLF being briefet Photo: OLF/Tom Haga

No reaction to the OLF warning - We can say what we want, it does not help! Our warnings are not taken seriously in Oslo, says the OLF. text by: STEIN TJELTA st@offshore.no In October, OLF made public a calculation that shows that the Norway’s petroleum industry contribution to the Norwegian state will decline by US $58 billion over the next four years. This warning did not lead to any reaction among decision makers in Oslo, says the OLF. - Now we see the consequences “This is dramatic. Revenues will fall sharply. The high gas prices have hidden consequences of the falling oil production. Now, that gas prices have fallen, the problem with declining oil production becomes more visible,” says the OLF’s, Roger Pedersen. 58 billion less “In 2015 the petroleum industry will contribute 58 billion fewer dollars on the state budget than it is today. Lack of investment in oil and gas industry can have serious consequences for the Norwegian society,” said OLF chief Gro Brækken during the OLF's annual conference in October. Yellow light “We have today a political situation where the traffic lights are on yellow for

66 Offshore & Energy MARCH 2011

the petroleum industry. It takes an average of 15, almost four times the government, years from discovery until it is in production and generating revenue,” said Brækken. In her speech she pointed to some trends for the Norwegian Continental Shelf if investment is no made: • Production decline continues. • Revenues to the community fall in parallel. • Without access to new exploration areas, the need for • Technical expertise will disappear abroad or leave the The basis to replace or maintain competence is no longer present. • Declining opportunities to counteract depopulation in rural areas. • The supplier industry is losing its home laboratory, because the driver for innovation disappears. • Financial leeway to invest in renewable energy decreases.


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Vil ha norsk klimaråd - Økt DNO-produksjon - Godal inn i Statoils styre - - Ekspe uten skjult agenda - Noreco kjøper Ronaldo - Helikoptermekling utsatt - Quickflange vant nyskapingspris - Bayerngas Norge kjøper britiske gassfelt - Greenpeace bordet Stena Don - Forland u Bergen Group-ledelsen - Fire utvalg skal utrede sjøkabel - Dom redder trolig Interoil - Ordreboken økte med 705 millioner - - Streik kan gi forsinkelser - Aker Solutions knytter Marulk til Norne - O - Ikke brudd på Grunnloven - Streikefare i GE Oil & Gas - Seler seiler i Lofoten - Finanser og klimautslipp hånd i hånd - - Sikker drift på norsk sokkel - FPSOene får ikke SUT - Odfjell krever 900 lioner fra Statoil - Offshore.no nyhetsbrev - Shtokman-oppdrag til DOF - Lønnsomt regnvær på ONS - Rov-kontrakt til IKM Subsea - Ny letebrønn nord for Sleipner - Milliardkontrakt til Bristow Nor - Oljefondet satser på Kina-kull - Merkel vil holde liv i tyske atomkraftverk - STX lander 900 millioner - Ny konferanseformann i ONS - Ser Brasil-muligheter - Nå henger håpet på Dalsnuten - Leter fra Premier Oil - Oppretter turbin-selskap - Bekrefter Gro-skuffelse - - Avslo ikke Kongen - Sevan styrer unna minus - Setter ny standard - Danmark godkjenner dansk-norsk sjøkabel - Lytt til Lun Rystad-talentene slo Statoil - Fikk 1000 jobbsøkere - uten annonsering - - 125 milliarder kroner innen fem år - Investerer åtte milliarder - Wintershall avdramatiserer lederflukten - Forsker for Petrob - Styrte Costners PR-sirkus - Peregrino kan bli milliardfelt - Stormfjord samler inn Statoil-3D - IBM åpner senter i Brasil - Haugane hudfletter politikere og media - - Vi kan starte i morgen - - Å reis månen er for smart for meg - Traff blink på Zidane - BP dropper Grønland - Russerne vil ha omfattende samarbeid i Barentshavet - Russerne vil ha omfattende samarbeid - Kan spare 15 milliarder å - Åpner norsk inkubatorsenter i Kina - Tror på ny oljeæra i Norge - Nytt senter skal gi mer olje - - Gro-brønnen var tørr - Statoil ser til Kina for mer skifergass - Arktiske muligheter i Kirkenes - G på vei inn i Statoil-styret - Flere britiske oljeutslipp - GL Noble Denton åpner Stavanger-kontor - Oljeetende bakterier renser Mexicogolfen - - En del år til leteoppstart - Skremt av energiproblemene Trist at Fredriksen blir syk av Norge - Leverandørmat for over tyve milliarder - Smakebiter fra ONS - Fire leverandører slås sammen - Se bilder fra ONS - Statoil har 60 nye prosjekter på gang - Lun investerer 5 til 7 milliarder i Norge - Statoil starter tre nye hurtigutbygginger - Total varsler Hild-utbygging - Dong selger i Nordsjøen - Goodtech og E&I slår seg sammen - Sikret subseakontrak Malaysia - Greenpeace vil stanse boring utenfor Grønland - Fabricom får Talisman-studie - - Kutter oljesmøringen av budsjettet - - Blir syk av Norge - Norsk sokkel på investeringstoppen - - St viktig for fornybar energi - Gasslekkasje på Mongstad - Tre selskaper utelukket fra Oljefondet - Neste Training-portal - Kritisk til vedlikeholdsnivået - Samler troppene på ONS - Dalsnuten kan gi millia utbygging - Ny teknologi skal redde dypvannsboringen - InterOil refinansier - Olsen-selskap resykler FSO - USA avdramatiserer iransk atomkraftverk - Rosa tiger ser svart - Gavedryss over klimapr jekter - Kjøper seg inn på Dalsnuten - Klart for en ukes oljesirkus i Stavanger - Vurderer å kutte ut fornybar energi - Vabø slutter i Wintershall - Yme-kontrakt til Bergen Group - Sevan blant Jordb favorittene - Seatrench graver for Total - Får kompensasjon, men mister jobbene - 375 Statoil-millioner til IKM Testing - - BP nekter å gi ut informasjon - - Seadrill-rigg til West Seno - Mulig fu Tunisia - Bore-ja på David - USA mener Israel overdriver - Technip inngår samarbeid - Samler seg til ONS - Total tar FMC-opsjon - Uforutsigbare Fredriksen - Kongsberg kjøper Odfjell-selskap åpner russiskbygd atomkraftverk - Noreq åpner USA-kontor - - Dette vi fryktet og advarte mot - - Har ligget i kortene lenge - Balansert og logisk, Statoil - FMC-kontrakt til Grenland Group - Lite oljef på Brynhild - Statoil spikrer ny organisasjon - Dong tjente på kald vinter - North Energy inn i Stirby - Åpner for kabelkompromiss - 2/3 deler av Norges oljereserver er utilgjengelige - Lieungh ove Odfjell Drilling - - Høres ut som gammelt nytt - Grønne vyer - ASCO vinner storavtale - Oppjusterer forventningene - Vindmøllekonsern nedbemanner - Maste-minister møter Hardangerrådet - Sev jobb stadig nærmere - Moss ny Hydro-sjef - Mindre omsetning ga pluss - Vil ha norsk tidevannspatent - DNO øker med ti prosent - Letet seg til minus - Tror på dansk olje - 80 prosent av oljesøle ikke rensket opp - Hywind ut i verden? - Nedgang i oljeproduksjonen - Hvordan unngå ulykker? - Så moden er norsk sokkel - Gigantiske oljeressurser - Ny brønn på Ormen Lange - Tar oppgjør m klimahysteriet - Skal bli best på vind i EU - Ser frem til borestart - Vil bort fra Clapton - Store tall for olje-Norge - - Sjøkabler kan øke CO2-utslippene - Roser norsk innsats i Mexicogolfen - - Rom forbedringer - Fra Dass til olje - Noreco stokker om - Palantir lander storjobb - Riis-Johansen avlyser Svalbard-tur - Ny daglig leder i EPTEC Energi - Råoljepriser gir økt overskudd - - Vi har aldri l et utvalg - Hjelper det å svømme? - Ukeslutt i oljebransjen - UKE 32 - - Vurderer å droppe Hardanger-utvalg - Alabama søksøker BP - Vil drøfte sjøkabel - Obama testet badevannet - Oljefelt oppda i Afghanistan - Solheim til Mexicogolfen - Modulær fremtid - Rigg-kontrakter for 515 millioner - 155 milliarder i minus - - Gasskraft må utredes - Høy oppetid og god inntjening - Seawell i milliard-av - Kjemper om borejobb - - La Lunde ligge - Sjøkabler kan føre til dyrere strøm - Ap til bunns tross snuoperasjon - Sp-topper vil ha kraftledninger - Det norske paradoks - Arbeidet kan være ferdig - G skraft redder Bergen - Mot slutten for norges viktigste letebrønn - Bergen Group sikrer 120 mill. - Dong signerer LNG-avtale - Nedgang for Aker Solutions - Aker inn i kasaksthansk joint ventu Tyrkia vil selge bensin til Iran - - Utenlandske eksperter må til - - Bare tøys - Ett steg videre i Angola - Master kan bli overflødige - Lederen for Rieber Shipping død - Asia-jobber til to Solstad-fart Lofoten kan gi 150-180 milliarder i utbygginger - Lite opplagt etter ferien - Gjennombrudd for rensing av vann - Statoil fortsetter opplåningen - Sikrer seg inspeksjonskontrakt - Ny kontrakt for Pros - Byggekontraktene i boks - Storm forhindrer plombering av oljebrønn - Snuoperasjon kan føre til flere vernekrav - Krever ministerens avgang - Kan bli sjøkabel likevel - - Sv er dømt til å tape - Dan investeringsgigant - Selges til Kina - Vant full seier mot Statoil - Bygger vindfarm-supply - Qatalum blir forsinket - Dobbel Bjørge-jubel - - Kraftlinjen strider ikke mot grunnloven - Ber Stoltenberg te nytt - Gir Sp skylden for Hardanger-mastene - - Kampen «så godt som over» - Technip vinner Snorre-jobb - Tror på milliard-resultat - Opp og ned i Murmansk - Frykter for fremdriften i klimaforh dlingene - Kjøper seg inn i oljetjenester - Tror han blir nedgravd - Songa Eclipse i rute - Navarsete villig til å revurdere Hardanger-avgjørelsen - Ny leder for karbonsatsingen - BP-opprydning svek ikke motstanden i nord - Jens i høyspent-trøbbel - Vant mer tid i Mosambik - - Lofotenvern kan gi flere arbeid - 600 millioner til Subsea 7 - Tror AP vil ofre Lofoten - Besøker Lofoten - Utsetter dypvan boring - Ja til Gjøa SEMI - Ønsker høring om kraftlinje - 340 millioner til Prosafe - BP-brønn fylt med sement - BP har betalt 1,8 milliarder i erstatninger - Krass kritikk av oljevern - Ny Bergen Group- Åpner Stavanger-kontor - - Ekofisk-hotell forsinket - Ap rystet etter krisemåling - - Gnål om kraftlinjer - Kullkraft i Hardanger - Fyller brønn med sement - ESS vinner Skarv-jobb - Tror på gode gavtaler - Sier nei til kraftlinjer - Gjøa-pålegg til Statoil - Rigg-giganten innfrir - Noreco slipper tall - Vil la Statoil lete etter olje i Alaska - Frykter flammene kan nå oljeraffinerier - Oljesølet som forsv - Høstens boreplaner for Barentshavet - Status for årets letebrønner - Sjøsatte Sevan Driller II - Tiltalt for markedsmanipulasjon - Skeie-riggene skal få jobb - Frykter permitteringer - Vi er lite pfinnsomme - Lundin i siget - Ap-ledere tror ikke kraftlinjen skader partiet - Seismikkoppdrag offshore Afrika - Mister halve overskuddet - Vellykket plombering av brønnen - BP selger Colombia-v somhet - Havila Phoenix til Expro - Interoil-bud feilet - Storkontrakt til norsk kabelfabrikk - - Gassprisen skal opp igjen - Verdenshistoriens største oljeutslipp - - Obama står ved sitt klimaløfte - Ga


>> field development

Statoil disagree with the Director of Petroleum The company's director for exploration and production does not feel taken by the NPD chief’s concern that too little is done to increase the recovery rate on mature Norwegian oil fields. text by: STEIN TJELTA st@offshore.no

Bente Nyland

- 2,000 dedicated heads “Here I do not agree with the Director General Nyland. The group has no less than 2,000 employees who work with increased production,” says Øystein Michelsen, senior vice president for exploration and production in Norway, to Offshore&Energy. NPD and Petoro, which operates the state's direct investment in Norwegian fields, are concerned that it's done too little on the ageing large fields. Petoro has previously said that if oil companies do not realise IOR [increased oil recovery] measures which are time critical to increase

68 Offshore & Energy MARCH 2011

Øystein Michelsen

production because of escalating maintenance costs that it may result in multiple fields having to be shut down earlier than expected due to unprofitable operations. What do you think about it? “Then I do not think Petoro thought of Statoil. I do not think we understand less than Petoro,” says Michelsen. O&E: What about the life of the Heidrun field? Here you have written down reserves, and Petoro presents a model of an anonymous field that may have to close earlier than expected. Probably it is precisely the Heidrun being used here as an example. What is your comment?

“On the Heidrun field, we have a very long perspective. It will produce for decades,” says Michelsen. 40 percent production decline The starting point was that Norway's oil production has fallen by 40 per cent since 2000, and will, according to NPD, fall faster than previously thought if operators do not grasp the situation soon. In 2005 the Norwegian Petroleum Directorate assumed that 75 per cent of the growth would have to come from existing fields. So far, only 56 per cent of the growth came from producing fields, while the rest is from discoveries that have been approved for development.


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>> maintenance & modifications Norwegian Petroleum Directorate director Bente Nyland is satisfied with Statoil's commitment to rapid development of small fields, but what worries most is that it's done too little on the aging large fields.

NPD criticizes indecision

text by: STEIN TJELTA st@offshore.no “The problem is that producing fields do not produce as planned, and we have said they need to work more with this important issue. We see that the companies fail to deliver. They do not drill enough wells, and it is through production wells, one gets increased production,” Nyland tells Offshore & Energy magazine. Statoil recently presented a summary of the year 2010 and samples of what suppliers can expect from new projects this year. With Statoil's manager for production on the Norwegian Continental shelf, Øystein Michelsen in the lead, Statoil’s upper management gave journalists one piece of good news after another. The fact though is that the company struggles to maintain its present production. Mainly because its aging fields do not perform as expected. NPD’s just not satisfied In September last year, the NPD held a press conference with focus on Norway’s falling oil production. The starting point was that Norway's oil production has been reduced by 40 percent since 2000, and will, according to NPD, fall faster than previously thought if production increasing measures are not undertaken

soon. Bente Nyland expressed concern over an apparent lack of necessary decisions: “The oil companies are not doing enough. There is talk a lot, but little is done. NPD has no idea and does not understand why things do not happen. When it is economically and commercially profitable, why not more emphasis on production increasing measures?,” Nyland wonders. O&E: Is this primarily Statoil? “It applies to all companies, but Statoil has most of the production on the NCS, so it is natural to concentrate on this company. However, we welcome the mindset surrounding the fast-track projects. We have said to the oil companies that this is very good, but what concerns us is the necessary steps to get out most of the old large fields. Growth In 2005 the Norwegian Petroleum Directorate assumed that 75 per cent of the growth would have to come from existing fields. But the fact is, so far only 56 per cent of the growth has come from existing fields, while the rest is from discoveries that have been approved for development.

Trym powers up Production has started up from the Trym development spanning the median line between the Norwegian and Danish sectors of the North Sea operated by Dong Energy. text by: JOHN BRADBURY jb@offshore.no Trym, in the Norwegian sector of the North Sea is being tapped via a subsea template tied back via a 5.5 kilometre (3.43 mile) pipeline crossing

70 Offshore & Energy MARCH 2011

the median line to the Danish Harald platform after extensive co-operation by projects partners including Bayerngas, and Maersk Oil and Gas, which operates Harald. Marking the first production for Dong Energy

from the Norwegian sector of the North Sea, Trym represents a big step forward for cross-border collaboration. Two wells are now onstream and there is a plan to tap the field with a third well which is due to be drilled in the next few months and development costs have been put at DKK 2.4 Billion (US $433 million). Trym’s reserves are put at 4.4 billion cubic metres of gas (155.372 Bcf) and 1.1 million standard cubic metres of condensate.


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MARCH 2011 Offshore & Energy 71


>> maintenance & modifications

Ekofisk-PDO delivered Operator ConocoPhillips has delivered its plans for revival of the aging North Sea Ekofisk field. Giant investments at Ekofisk are looming and the goal is to increase the recovery rate from 49.5 to 52 per cent. text by: GLENN STANGELAND gs@offshore.no and STEIN TJELTA st@offshore.no Norway’s department for Petroleum and Energy has just received the plans for development and operation of the Ekofisk South and Eldfisk II projects and the total investment in the two is estimated at NOK 65 billion according to the department. Improved recovery Ekofisk South includes construction of a new wellhead platform, a new sea floor based water injection facility and the drilling of 44 new wells. Eldfisk II includes an upgrade of existing facilities and construction of new living quarters, new processing facilities and the drilling of another 42 new wells. Possibility of power from land It is planned that the power requirement for both projects will be covered by the existing turbines and infrastructure. ConocoPhillips’ also plans to lay a power cable between the Ekofisk and Eldfisk fields, which will facilitate a more efficient operation of the two. Also, Ekofisk South and Eldfisk II will be adapted to receive power from onshore if this becomes a viable solution in the future. The government will review the assessments related to power solutions in the PDO treatment.

that total investments in the greater Ekofisk area were estimated to be roughly NOK 120 billion over the next four to five years. About NOK 95 billion will be invested in infrastructure, the remaining in drilling wells. The wellhead platform Ekofisk 2/4 Z is scheduled to be finished in 2013, whilst the combined accommodation, wellhead and process platform Eldfisk 2/7-S is scheduled to be finalised in 2015. Before the financial crisis struck and oil prices plunged a few years ago, industry reports indicated that Ekofisk investment would be in the region of NOK 100 Bn, of which half was expected to go to drilling new wells. And in the last year, it was assumed this amount would fall as oil companies put pressure on suppliers' terms and prices.

Photo: Kjetil Alsvik/ConocoPhillips

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Contracts for the summer Contract awards are expected shortly after the Norwegian authority has considered these new plans. ConocoPhillips has confirmed to Offshore & Energy that contract awards for the two new wellhead platforms will come this summer, assuming approval of the PDOs. Also the operator confirms that it has gone out to bid both nationally and internationally in the tendering process. NOK 425 million to FMC However, FMC Technologies has already entered into an agreement with ConocoPhillips for production and delivery of subsea equipment and associated services for water injection at the two fields. The delivery is valued at approximately NOK 425 million. Much more to come In August last year, one of the major partners in the development, Total E&P Norway told O&E

72 Offshore & Energy MARCH 2011

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Two of Norways largest oil service companies targets new investors. text by: GLENN STANGELAND gs@offshore.no

MMO giants plan listing on the OSE The Norwegian oil service company Apply is planning an Initial Public Offering and a listing on the Oslo Stock Exchange during 2011. Apply currently has two Stavanger-based investment companies as its main shareholders; the private equity investor HitecVision and the privately owned KøhlerGruppen. HitecVision has previously led successful IPOs of its portfolio companies, such as the oil company Revus and the oil service specialist APL. Now the time has come to Apply. “We’ve reached a size which makes us increasingly attractive. This was confirmed when Statoil included us in the major frame contracts it awarded within MMO last year. We also see that customers want suppliers with the size and capital to take on more demanding tasks. Further growth is therefore crucial if we are to compete even more strongly for the most demanding jobs. The strong industrial momentum and the good strategic and operational prospects, make a listing of the

!

company right for us now,” says Per Bjørn Habbestad, CEO of Apply, according to a press release. 2000 employees Apply has its head office in Stavanger and operations along the west coast of Norway up to Bergen and in selected international niches. The group has leading expertise in five business areas, covering maintenance and modifications (MMO), accommodation (living quarters), products and services, as well as subsea. Apply had a turnover of NOK 2.6 billion in 2010 and has about 2,000 employees. Apply had a record high order intake through 2010 as a result of the company’s strong position in the growing MMO market on the Norwegian continental shelf. A main driver in the MMO market growth is the fact that a number of large installations both on the shelf and onshore are in need of significant modifications and upgrades to prolong their economic life. In addition, Norwegian oil

companies are facing the challenge of a reduction in the production of oil and gas. To compensate for the latter, and to increase production and the lifetime of the fields, the oil companies have to invest in MMO. Based on this, it is expected that the market for maintenance and modifications will show a significant growth the next years. The Apply group today includes a number of subsidiaries and the group has shown substantial growth in recent years. Apply had an order intake in 2010 of NOK 3.5 billion, which was an increase of about NOK 1 billion in a market that was still characterized by the aftermath of the financial crisis. Aibel are making preperations The owners of Aibel, Ferd and Herkules Capital, have also signalled that they are making preparations for a possible stock exchange listing. The company has hired 400 new employees in 2010 and plans to hire over 1000 more during the next three years.

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MARCH 2011 Offshore & Energy 73


>> recruitment

Offshore Media Group og A-Pressen Digitale Medier lanserer nå et felles kampanjetilbud på ledige stillinger for olje- og energibransjen. Kampanjen omfavner både trykte og digitale medier gjennom Offshore & Energy, Offshore.no og 45 nettaviser tilknyttet A-pressen.

Kampanjetilbud >> Stillingsannonse i Offshore & Energy som slippes 22. mai

(ord. pris 6 500,-)

>> Stillingsannonse på Stilling ledig på Offshore.no ++

(ord. pris 5 900,-)

>> Kampanjepris 8 900,-

(ord. pris 12 400,-)

Kontakt: salg@offshore.no

Produktutviklere søkes Techni AS er et produktutviklingshus hvor våre oppdragsgiveres produktideer realiseres gjennom tverrfaglighet og dedikasjon kombinert med vekt på utviklingsmetodikk og nærhet til virkeligheten. De gode produktene skapes gjennom analyse, frihet på konseptnivå og nøyaktighet i utførelse. I syv hundre prosjekter siden 1997 har vi involvert oss genuint i å skape verdifulle løsninger for våre oppdragsgivere.

Vi trenger deg som brenner for produktutvikling for å kunne utvikle enda flere patenterbare teknologier og markedslendende produkter. Til våre utviklingsprosjekter trenger vi medarbeidere som både har evnen til å tenke nytt og anderledes sammen med andre og som har faglig styrke innenfor: - mekanikk - elektronikk - industridesign - programvareutvikling

1/6 A4-side, 98x98mm Teknisk Selger Vi tilbyr en udfordrende og allsidig stilling i en særdeles spennende virksomhet i global vekst. Arbeidsopgaver:

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■ Deres arbeidsoppgaver vil typisk være standard produkt salg samt og være med i komplette prosjekt salg. ■ Daglig sparring med kunder så vel som våre leverandører. ■ Utarbeidelse av tilbud, oppfølgning og ordre behandling. ■ Det forventes at dere har en generell forståelse for system integrasjon som gjør at vi kan levere komplette løsninger til undervannsindustrien. ■ Noe reiseaktivitet må påregnes.

■ Utdannelse som Automasjon, Elektronikk Ingeniør eller elektronikk tekniker med erfaring fra lignende arbeid. ■ Ha evne til å se løsninger samt være utadvendt og fleksibel. ■ Grundig kjenneskap til data (vi arbeider med Navision). ■ Beherske engelsk skriftlig og muntlig. ■ Vi forventer gode samarbeidsevner for å kunne arbeide i et team og min 3-5 års erfaring fra lignende jobb.

Vi kan tilby lønn etter kvalifikasjoner, flere feriedager, kortere arbeidsuke, god pensjons/forsikringsordning, utviklingsmuligheter, godt arbeidsmiljø. Skriftlig søknad (Merket: Teknisk Selger) fremsendes pr. post eller e-mail til: MacArtney Norge AS, Strandsvingen 3, 4032 Stavanger innen 01.04.2011. Spørsmål om stillingen kontakt Mats Ekström, System Sales Manager telefon 51951800.

www.macartney.com

Les mer på www.techni.no eller ta kontakt på 47200400 eller techni@techni.no

74

Offshore & Energy MARCH 2011

MacArtney Norge AS er et selvstendig selskap innenfor MacArtney gruppen. Vi er en del av et internasjonalt selskap med hovedkontor i Danmark og datterselskaper i UK, Frankrike, USA, Holland, Tyskland og Brasil.


Jotun er en av verdens ledende produsenter av maling og pulverlakker, med 70 selskaper og 38 produksjonsanlegg fordelt på alle kontinent. I tillegg har Jotun agenter, avdelingskontor og distributører i mer enn 80 land. Jotun hadde i 2010 en total omsetning på NOK 13 452 millioner, og har i dag 7 800 medarbeidere. Konsernet er organisert i fire divisjoner og har sitt hovedkontor i Sandefjord.

Jotun Protects Property

SALG INDUSTRI OG OFFSHORE Jotuns vokser og vi søker en ny medarbeider innenfor salg av industrimaling til offshore nybygg og vedlikehold. Stillingen inngår i Protective-gruppen som har et tett samarbeid med tekniske service og vårt R&D-miljø.

Vi vil gjerne ansette deg som ønsker å arbeide arbeidet med salg og markedsføringsaktiviteter overfor kunder og prosjekter i et internasjonalt miljø. Du bør ha teknisk – og/eller salgserfaring fra oljebransjen eller industrien.

Arbeidssted vil være i Stavanger og noe reisevirksomhet må påregnes. For mer informasjon om stillingen og søknad, se www.jotun.no/rekruttering.

jotun.com

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MARCH 2011 Offshore & Energy 75


>> conferences

>> MARCH 7-9 Mar Norsk Undervannsssymposium Rica Maritim Hotel, Haugesund, Norway Organisers: Norwegian Petroleum Society (NPF) www.npf.no 9 Mar

FPSO International Oslo, Norway Organisers: INTSOK www.intsok.no 16 Mar Oil & Finance: The E&P industry back on track, Lysebu, Oslo, Norway Organisers: Norwegian Petroleum Society, NPF www.npf.no 20-23 Mar 17th Middle East Oil & Gas Show Conference (MEOS) Bahrain International Exhibition and Convention Centre Organisers: Arabian Exhibition Management, IEM & OES. www.meos2011.com 21-24 Mar Gastech Conference and Exhibition Amsterdam RAI, Holland Organisers: DMG World Media UK www.gastech.co.uk 22-24 Mar CIPPE 2011 New China International Exhibition Center, Beijing, China Organisers: Beijing Zhenwei Exhibition, ITE China & ITE Group www.cippe.com.cn/cippeen. 22 Mar Exploration Revived Bergen, Norway Organisers: NPF www.npf.no

76 Offshore & Energy MARCH 2011

23 Mar Oil and Gas Technology for Cold Regions 2011 Rica Holmenkollen Park Hotel, Oslo, Norway Organisers: Tekna www.tekna.no 23-24 Mar Modification conference Stavanger Forum Organisers: Offshore Media Group www.offshore.no/mod 30 Mar US-Norway Technology Partnership Conference: Minimising oil spills and discharges to the Sea. Houston, US Organisers: Intsok www.intsok.no

>> APRIL 10-12 Apr 19th Middle East Petroleum & Gas Conference (MPGC) Bahrain Organisers: NOGA and BAPCO www.cconnection.org/conference/ MPGC/2011 10-13 Apr AAPG Annual Convention & Exhibition: Making the next giant leap in geosciences. George R. Brown Convention Centre, Houston, Texas, US Organisers: AAPG www.aapg.org 27-29 Apr Arctic Oil&Gas North America Conference Krasnapolsky Hotel, Amsterdam Organisers: IBC Energy www.ibcenergy.com

>> MAY 2-5 May Offshore Technology Conference Reliant Park, Houston, Texas, US Organisers: OTC www.otcnet.org/2011 10 May Intelligent fields and integrated operations Valhall, Oljedirektoratet, Stavanger, Norway Organisers: Norwegian Petroleum Directorate (NPD) www.npd.no 25-27 May Small Scale LNG Clarion Hotel, Stavanger, Norway Organisers: Tekna www.tekna.no/intconf 23-26 May EAGE Conference & Exhibition incorporating SPE EUROPEC 2011 Vienna, Austria Organisers: European Association of Geoscientists and Engineers (EAGE) www.eage.org/events

>> JUNE 01-02 Jun Oil and Gas Asia 2011 (OGA 2011) Kuala Lumpur Convention Centre, Malaysia Organisers: Malaysian Exhibition Services Sdn Bhd (MES) www.oilandgas-asia.com/ 06-07 Jun The 16th European Gas Conference 2011 (EGC 2011) Hotel Bristol, Oslo Organisers: NGA and Gassco http://egc2011.com 07-08 Jun The 16th Field Reservoir Management Conference Clarion Hotel, Stavanger, Norway


OFFSHORE & ENERGY

Organiser: Norwegian Petroleum Society (NPF) www.nfp.no 8-9 Jun UTC 2011: Subsea future - leveraging innovation and industrialization Grieghallen, Bergen Organisers: UTC. www.utc.no 14-17 June Brasil Offshore, Macae Centro, Brazil Organisers: Brazilian Petroleum, Gas and Biofuels Institute, SPE and Reed Exhibitions Alcantara Machado. www.brasiloffshore.com 15 Jun IADC World Drilling 2011 Conference & Exhibition: Embracing Change, creating opportunities. Bella Centre, Copenhagen, Denmark. Organisers: IADC International Association of Drilling Contractors www.iadc.org/conference Please add a new event to our calendar on Offshore.no if you think we should add it to the overview. Thank you.

FACTS

Statoil elected pre-salt operator in Angola The national oil company Sonangol has announced that the Angolan jury of the bid rounds has elected Statoil for operatorship and participation in several pre-salt blocks offshore Angola. Statoil has submitted its proposal as part of the pre-salt restricted public bid round organised by Sonangol for access to pre-salt acreage in the Kwanza Basin in Angola. Statoil’s proposal includes operatorship of Blocks 38 and 39 and participation in Blocks 22, 25 and 40 with a comprehensive work program and a signature bonus for each block.

“With nearly 20 years of experience in Angola and as the 4th largest producer in the country, our ambition has been to become an operator. We are eager to expand our existing Angolan portfolio and to become a more active contributor in the development of the Angolan hydrocarbon sector and the economy at large,” Dodson adds.

Frontier play Sonangol has announced the jury’s proposal of the composition of the different consortia groups for pre-salt blocks awarded in the restricted public bid round.

180.000 barrels per day Statoil believes that its technical and subsurface competence, experience in international deep water exploration programs and established track record in planning and executing large complex offshore projects will be beneficial in unlocking the exploration potential of the pre-salt play in Angola.

“The Angolan pre-salt is a frontier play with high potential. This presents Statoil with the opportunity to access several high impact exploration prospects which are believed to be analogous to pre-salt Brazil. Securing a multiple block portfolio early on in the exploration of this new play is a big advantage. Such a strong and influential position gives Statoil exposure to significant upside potential should the play be proven," says executive vice president for Exploration, Tim Dodson.

As a major partner in Blocks 4/05, 15, 15/06, 17, 31 and 34, Statoil already participates in ten producing fields and in four new fields under development (Pazflor, PSVM, Kizomba satellites and CLOV). Statoil’s equity production from Angola is currently around 180.000 barrels of oil per day, representing close to 10 per cent of Statoil’s production.

What is pre-salt? The expression "pre-salt blocks" refers to blocks where the main prospective interval was deposited prior to salt deposition.

Tim Dodson (Photo: Statoil)

These prospects are thought to be analogous to the recent, significant pre-salt discoveries offshore Brazil. Statoil has experience in exploring in complex salt terrains and has developed proprietary seismic imaging expertise that will be highly applicable to the pre-salt exploration in Angola.

MARCH 2011 Offshore & Energy 77


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MARCH 2011 Offshore & Energy 79


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Returadresse: Offshore Media Group AS, Trollhaugsmyra 15, 5353 Straume

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