Offshore & Energy - NO.3-2009 by Offshore.no AS

NO. 33 2009 2009 vOlume vOlume 27 27 NO.

BERGEN 14TH - 15TH OCTOBER

tHE 5tH PtC CoNFERENCE

Pages 90-91

tHE SEABEd'S BRIGHt FutuRE

BuSy dAyS FoR AkER

INGE HANSEN

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THIS ISSUE:

HEAdING FoR RouGH wAtERS As the manager of the world's fifth largest supply ship company, Karl-Johan Bakken, has identified some important challenges ahead. he fears that the world supply market is heading for lower rates and lower ship utilisation.

tHE SEABEd'S BRIGHt FutuRE

An even stronger focus on extending production time at oil- and gas fields provides fmC Technologies with great expectations for the subsea service market in the future.

SEEkING PARtNERS woRldwIdE even if CeO Pål engebretsen is satisfied with the achievements of Bergen group so far, he realizes that getting a partner or two will further empower the company’s strategic position in the years to come.

6 Offshore.indb 6

OffshOre & eNergy 3/09

NoRwAy SAlSHES BARENtS SEA RESouRCE EStImAtES The oil industry is licking its chops at the prospect of accessing the visually wondrous and pristine lofoten region.

RECovERy SIGNS SEEN FoR uk signs of a recovery in the fortunes of the uK North sea have started to appear in the third quarter this year with news of several major projects taking significant steps forward.

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FRom tHE EdItoR

Desire for diversity Around the turn of the year 2003/2004 there were secret merger negotiations between statoil and hydro. The statoil CeO at the time, Inge hansen, states in this issue that the two companies had come a long way with a concept where the merged company was to change ownership interests on the Norwegian continental shelf (NCs) with a large international oil company. The strategy was to create a counterweight on the NCs to the new oil giant. Both parties meant that a combined statoilhydro was large enough on the NCs, but still too small to compete internationally, which was the most important condition for the merger. “We wished to keep a competitive diversity after saga Petroleum and Norsk hydro was gone. This was strengthened by the fact that none of the major international players had large enough NCs interests to find Norway was really important for them, and the smaller players did not have the resources to be able to play such a role”, hansen says. The industrial logic was to grant statoilhydro a significant and interesting international footing, low risk and without large cash payments, while the international company, which lacked OeCD production in a shortterm perspective, was to get a total NCs production of up to 400,000 barrels. The merger of hydro and statoil would create a NCs giant. By adding NCs

production to an already established international oil company, with assets and interest enough to make a needed counterweight to statoilhydro, one could ensure the most efficient production and further development on the NCs. unfortunately, the concept was not continued when the merger finally took place in 2006. Today no one sells production, and as long as the Norwegian state owns 67 percent of the shares in statoilhydro nobody is interested in trading for shares. “statoilhydro has not become a significant international player, which was the main precondition for the merger, but is still a Norwegian company with operations abroad. At the same time the company has become completely dominant on the NCs, without the necessary corrective that could have been created through a swap transaction", says hansen. setting terms for swop or trading licenses to reduce the dominance of statoilhydro was something that Norwegian authorities should have thought of. statoilhydro has not become a stronger international company, which was the main prerequisite for the merger. It has, however, become a giant on the Norwegian Continental shelf. The close to monopoly situation in the home market creates a very dangerous situation. Commanding more than 80 per cent of the NCs market statoilhydro has an almost total power over field

online Editor offshore.no Arild gilja - ag@offshore.no Head office Trollhaugsmyra 15, 5353 straume switch: +47 56 31 40 20 fax: +47 56 31 40 30 redaksjonen@offshore.no www.offshoremediagroup.com

8 Offshore.indb 8

uk Editor John Bradbury - jb@offshore247.com

Editor in Chief helge Keilen - hk@offshore.no

o&E Staff writers Arild gilja - ag@offshore.no John Økland - jo@offshore.no elisabeth h. Kolstad - eko@offshore.no Patrick mcloughlin - pm@offshore247.com glenn stangeland - gs@offshore.no

News Editor offshore&Energy: Arild gilja - ag@offshore.no

managing director: erlend Keilen - ek@offshore.no

OffshOre & eNergy 3/09

Editor in Chief Helge Keilen

developments and which suppliers to prefer – or not. If the merger deliberations of hansen and hydro’s CeO eivind reiten had been successfully concluded in 2003, the NCs would have been more diversified and interesting. And statoilhydro’s international footing would have been much more solid. One can only hope that a similar opportunity like in 2003 will occur sometime in the future. If that happens, Norwegian authorities must take a much more active part than they did in 2006.

CMY

helge Keilen editor-in-chief

distribution 10.600 + online distribution, Offshore.no Editorial offices Oslo, Bergen, stavanger, london 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

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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Fjell Industries is a modern, well equipped ISO 9001:2000 and NS-EN ISO 3834-2 certiﬁed workshop Fjell Industries a modern, equipped 3834-2incertiﬁed suitable locatedisat Straume well – Sotra, in the ISO heart9001:2000 of the on- and and NS-EN offshoreISO activities westernworkshop Norway suitable located at Straume – Sotra, in the heart of the on- and offshore activities in western Norway We specialize in design, production and repair of heat exchangers, pressure vessels, driers, We specialize in design, production and repair of heatsystems. exchangers, pressure vessels, driers, evaporators and piping evaporators and piping systems.

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An advances workshop with design capabilities Our products services cover the following: An advances workshop withand design capabilities Our products services cover the following: An advances workshop withand design capabilities and3834-2 repaircertified of tubular heat exchangers Fjell Industries is a modern, well equipped ISO Design, 9001:2000fabrication, and NS-EN ISO workshop, Fjell Industries is a modern, well equipped ISO 9001:2000 and NS-EN ISO 3834-2 certified workshop, suitable located at Straume – Sotra, in theheart of the onand offshore and activities in western Norway tubular heatexchangers exchangers Design, fabrication, repair of finned heat Fjell Industries a modern, equipped 3834-2incertified suitable locatedisat Straume well – Sotra, in the ISO heart9001:2000 of the on- and and NS-EN offshoreISO activities westernworkshop, Norway finned heat exchangers heart Design, fabrication, repair of pressure vessels We specialize design,–production and repair of heat exchangers, pressure vessels, driers, suitable located at in Straume Sotra, in the of the onand offshore and activities in western Norway We specialize in design, production and of heat exchangers, pressure vessels, driers, equipment  repair Design, fabrication, and of pressure vessels such as evaporators and piping systems. Design and fabrication ofrepair various process We specialize in design, production and repair of heatsystems. exchangers, pressure vessels, driers, evaporators and piping  Design and fabrication of variousmakers, processCoolers equipment Driers, Freshwater and such Wasteas evaporators Evaporators, and piping systems.

Evaporators, Driers, Freshwater makers, Coolers and Waste Recovery Units (WHRU) for offshore high temperature gase

Our products and services cover the following: Recovery (WHRU) forPiping offshore high temperature gase Our products and servicesUnits coverofthe following:  Prefabrication Spools and Systems products Design, fabrication, and repair of tubular heat exchangers Our and services cover the following: Ourproducts and services cover the following: Prefabrication of Spools Piping Systems  Fabrication of all typestubular ofand skid and structures  Design, heat exchangers Design, fabrication, fabrication, and and repair repair of of finned heat exchangers  fabrication, Fabrication all types of and structures tubular heat exchangers Service and repair work onskid various types of drilling equipme • Design, andof repair of tubular heat exchangers  Design, fabrication, and repair of heat exchangers Design, fabrication, and repair of finned pressure vessels • Design, fabrication, and repair of finned heat exchangers  Design, fabrication, and repair of finned heat exchangers vesselstypes  Service and repair workpressure on various ofas: drilling equipme Design and fabrication of various process equipment such • Design, fabrication, andand repair of pressure vessels Design, fabrication, repair of pressure vessels WeDesign and fabrication of various process equipment such as: Evaporators, Driers, Freshwater makers, Coolers and Waste have welders forprocess most equipment materials such as:Heat • Design and certified fabrication of various such as:  Design and fabrication of various process equipment such as:Heat Evaporators, Driers, Freshwater makers, Coolers and Waste Evaporators, Driers, Freshwater makers, Coolers and Waste Heat Units (WHRU) forfor offshore high temperature gases. WeRecovery have certified welders most materials such as: Evaporators, Driers, Freshwater makers, Coolers and Waste Heat Units for offshore high temperature gases. Recovery Units (WHRU) for offshore high temperature gases.  Stainless steel (all types)  Recovery Prefabrication of(WHRU) Spools and Piping Systems Recovery Units for offshore high temperature gases. • Prefabrication ofofSpools and Piping Systems  Prefabrication of(WHRU) Spools Piping Systems Fabrication all types ofand skid and structures  Stainless steel (all types) Duplex materials • Fabrication of all types of skid and structures  Prefabrication of Spools and Piping Systems Fabrication of all types of skid and structures Service and repair work on various types drillingequipment equipment Duplex materials • Service repair work onof various types of of drilling  and Titan Fabrication of all types skid and structures  Service and repair work on various types of drilling equipment • Engineering work including structural, process and general FEA certified 6Titan MO andwelders repair work on various types drilling equipment We haveService for most materials suchofas:  6 MO We have certified welders for most materials such as: We have certified welders for most materials such as: Fjell Industries is atypes) company committed Stainless steel (all We have certified welders for most materials such as: to the offshore industries a  Stainless steel (all types) • Stainless steel (allintypes) Fjell Industries isthe a company theare offshore industries a also Duplex materials investing future. Incommitted this respecttowe particularly proud  Stainless steel (all types) Duplex materials • Duplex materials alsoTitan investing in the future. In this respect we are particularly proud involvement • Titan Duplex materials in innovative work such as: ourTitan 6 MO • 6our MO in innovative work such as: Titan 6 involvement MO  A new assembly method for Waste Heat Recovery Units • Carbon Steel Fjell Industries 6 MO is a company committed to the offshore industries and is Fjell Industries a company committed the offshore and  A new assembly forare Waste Heat Recovery Development of newtofriction drierindustries (patent pending) alsoIndustries investing inisis the future. Incommitted thisamethod respect we particularly proud of is Units Fjell a company to the offshore industries and Fjell Industries is a company committed to the offshore industries and alsoinvolvement investing in the future. 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Fjell Industries AS Fjell Industries AS Box 404, NO-5343 Straume, Norway Smålonane 5, P.O. Smålonane Box Straume, Phone: AS +47 5, 56P.O. 31 26 00404, NO-5343 Fax: +47 56 Norway 33 07 30 Fjell Industries Phone: +47 56 31 26 00 Fax: +47 56 33 07 30 Fjell Industries AS E-mail: post@fjellindustries.com Website: www.fjellindustries.com Smålonane 5, P.O. Box 404, NO-5343 Straume, Norway Smålonane Box Straume, Fjell Industries AS E-mail: post@fjellindustries.com www.fjellindustries.com Phone: +47 5, 56P.O. 31 26 00404, NO-5343 Fax: +47 56 Norway 33Website: 07 30 Phone: 56P.O. 31 26 00404, NO-5343 Fax: +47 www.fjellindustries.com 56 Norway 33 07 30 Smålonane 5, Box Straume, E-mail:+47 post@fjellindustries.com Website: E-mail: post@fjellindustries.com Website: Phone: +47 56 31 26 00 Fax: +47 www.fjellindustries.com 56 33 07 30 E-mail: post@fjellindustries.com Website: www.fjellindustries.com

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COSL Drilling Europe AS, became in September 2008 a wholly owned subsidiary of China Oilfield Services Ltd. (COSL), a leading comprehensive solution provider of integrated oilfield services, including 34 offshore drilling rigs. COSL Drilling Europe AS is located in Stavanger, Norway, headquarter for operations in Europe. Our mission is to deliver world class performance to our customers and continuously aiming at maximising shareholders value, improving our business processes and maintaining a high HSE&Q standard. The company is operating two accommodation units, COSLRigmar and COSLRival, on long term contracts for ConocoPhillips on the Ekofisk Field. We are also presently located in China with site offices in Yantai, Dalian and Penglai, where 90 persons are dedicated to supervise the construction of our 3 semi submersible drilling units. COSLInnovator and COSLPromoter are on long-term drilling contracts on Norwegian continental shelf with Statoil ASA on Troll for 8 years with option for another 8 x 1 year.

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Our semi submersible drilling rigs are under construction at Yantai Raffles Shipyard, in Yantai, Dalian and Penglai.

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REPoRtAGE

OffshOre & eNergy 3/09

Offshore.indb 16

www.offshore247.com

THE SKIPPER He is the factory worker’s son from Ila in Oslo who became national handball team captain, worked ten years internationally with flower pots, was a problem-solver in the Norwegian banking industry and CEO of Orkla Finans, Statoil and Aker Kvaerner. After 38 years in management positions he started as an independent consultant. Meet Inge K. Hansen (63). Text by: Helge Keilen hk@offshore.no If it really blows on the tops, Inge Hansen should have been taken by the wind for a long time ago. He has held some of the most prestigious jobs in the Norwegian business society, without visible downturns or critics of any significance. His engaging smile is always just a quick remark away and his listening skills are rare for a top notch economic expert. Sportsman Inge grew up in the 1950’s in central Oslo. His childhood was spent with long afternoons playing in the St. Hanshaugen park. At six he was caught up in gymnastics, football and ice hockey, but when he set a school record in throwing a small ball (95 meters) he was persuaded to join Fredensborg ballklubb. In over two years the boys trained themselves, without a skipper, and lost only one match. In fact, they trained more than the A team, which was Norway's best in those years. As a 17-year-old Inge Hansen debuted in the A-team and after military service in 1967 he blew through the Norwegian School of economics and business administration -Handelshøyskolen - in merely three years as the second-best among his peers. By then, he had married and had a son and had become Norwegian handball champion with the Bergen students’ team. The start of the 1970’s is known as the Norwegian handball golden years, and was topped with the Olympics in Munich in 1972, with well-known sports (and later business) profiles like Trygve Hegnar, Harald Tyrdal, Carl Graff-Wang and the captain - Inge Hansen. In total Hansen represented Norway 116 times, around half of those as captain. About his youth years, he says this: "In my family there were no academics, but I

knew it was possible to combine sport and education. My dreams of becoming a pilot were shelved due to a warped cornea, but I have always liked arithmetic and mathematics, and the sport taught me team spirit. As team leader I found it more important to be respected than to be loved and this philosophy I transferred to my work. With me you get what you see, no hidden agendas. I have always been in opposition to the authorities and have great pursuit of freedom," says Hansen.

<<StatoilHydro

has

not become a significant international player, which was the main precondition for the merger, but is still a Norwegian company with operations abroad.>>

Flowerpot Man After School, he started marketing Jiffy Pots. Two Norwegian businessmen had developed special organic flowerpots with 1-2 percent of the world market, and around 3 million plants planted in Jiffy pots every day. At 27 Hansen led the construction of a new factory in northern New Brunswick, Canada, a

period he deems the best in his business career. From a California gardener he met, he learned something that became very useful in his future business life: "In the struggle against the traditional market for flowerpots he found that no matter how cheap he could produce, he was never the cheapest. Therefore, he concentrated on being the best, and business flourished. 30 years later I tried the same idea in Aker Kvaerner. Others can assess how that went," says Hansen. Banking and Risk After ten years in international flowerpot business, he began in Bergen Bank, originally planned for between three and five years. Then came the great banking crisis, and in almost ten years within DnB he encountered some of the largest problem engagements like Selmer, Norsk Data, Brudevold and Brynestad. "In these processes you get to know people well. Good solutions are based on trust and on parties keeping their word. Some, like Atle Brynestad, end up as personal friends. One should, by the way, never leave the negotiations on a Friday. I have held heavy negotiations going until Saturday evening in order to prevent the parties from getting the weekend to review their opinions. The banking business is really there to function as a correction instrument in both upturns and downturns. During the last three to four years many banks left this simple principle. Financing 100% of properties and comprehensive savings advice from young bank employees has caused major problems. Unfortunately there are too few left with the expertise from the previous banking crisis. When financial people invest in something as foreign as Croatian property, it must go wrong. They forget the old slogan that any return above normal bank interest is risky,”

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says hansen. From finance to Statoil As head of Orkla finans, Inge hansen over the next six years increased the companyâ&#x20AC;&#x2122;s value significantly and it caused a sensation when in 2000 decided to reduce his own salary by 75 percent to become CfO of statoil. Without any bonuses, stock options, a golden parachute or a severance agreement. "you should have a base salary for your livelihood, a single bonus when the company goes well and a long-term incentive when you take the real risk. unfortunately, recent years been characterized by a focus on short-term benefits and free travel with bonuses and stock options even when the business goes bad," he says In statoil, he experienced a career highpoint, namely to ring the bell for the listing of statoil in the New york stock exchange in June 2001. Already then, he saw statoil's challenges, and this was highlighted when he became acting chief executive officer when Olav fjell had to resign after the Iran scandal. "statoil's challenge was and is that most of the remaining resources are in countries controlled by national oil companies. The international oil giants are no longer winners just because they have money, technology and ability to implement large projects. money is not the issue, especially when countries like China, India and Japan, which are using the nation's own reserves to obtain upstream resources. Technology can be acquired from experts like schlumberger and halliburton and project implementation from the large main suppliers. The oil companies can buy the resources, but this is often costly and of uncertain outcome," says hansen.

This was strengthened by the fact that none of the major international players had large enough NCs interests to find Norway was really important for them, and the smaller players did not have the resources to be able to play such a role. Internationally the cooperation between statoil and BP in 1990â&#x20AC;&#x2122;s had provided exciting opportunities for statoil in areas such as Azerbaijan, Angola and venezuela, but without operatorships this was still more to be regarded as financial investments. A field operator has considerably greater influence than the other owners. If eNI or Total are the operator, contracts are often awarded to saipem and Technip and BP as an operator prioritizes British suppliers. As a regular license participant statoilhydro has not had the same impact,â&#x20AC;? says hansen. Industrial logic "We had many possible scenarios on the table, including a merger with an international company with good relations on the Norwegian continental shelf. But towards the end of 2003, [eivind] reiten and I began negotiations with one of the global oil companies in terms of an exchange of operatorship. We were to obtain two valuable international operatorship and licenses and in

exchange they should get 250-300.000 barrels of oil production and two very interesting NCs operatorships. This would immediately grant statoilhydro a significant and interesting international footing, with low risk and without large cash payments, while the international company, which lacked OeCD production in a short-term perspective, was to get total NCs production of up to 400,000 barrels. The company would then be willing to spend significant research funding furthering NCs development. The industrial logic was clear. The merger of hydro and statoil would create a NCs giant. By adding NCs production to an already established international oil company, with assets and interest enough to make a needed counterweight to statoilhydro, we could ensure the most efficient production and further development on the NCs. Both parties were very interested in this solution, and we had come far with the concept, without informing the authorities, when the merger talks became known in the press. unfortunately, the concept was not continued when the merger finally took place. Today no one sells production, and as long as the Norwegian state owns 67 percent of the

desire for diversity Around the turn of the year 2003/2004 there was secret merger negotiations between statoil and hydro. hansen says that the two companies had come a long way with a concept where the merged company was to change ownership interests on the Norwegian continental shelf (NCs) with a large international oil company. "The strategy was to create a counterweight on the NCs to the new oil giant. Both parties meant that a combined statoilhydro was large enough on the NCs, but still too small to compete internationally, which was the most important condition for the merger. We wished to keep a competitive diversity after saga Petroleum and Norsk hydro was gone.

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shares in statoilhydro nobody is interested in trading for shares. statoilhydro has not become a significant international player, which was the main precondition for the merger, but is still a Norwegian company with operations abroad. At the same time the company has become completely dominant on the NCs, without the necessary corrective that could have been created through a swap transaction," hansen observes. Røkke's trusted sunday 7. march 2004 Inge hansen was to set off on his usual morning jogging trip, when the phone rang. It was the main shareholder in Aker Kvaerner Kjell Inge røkke, who had just been told that his CeO helge lund had accepted the job as CeO of statoil. This collided catastrophically with røkke's plans to raise loans for us $900 million to ensure the company’s existence. Without a CeO on monday morning the entire company could collapse. hansen’s plan was to be re-appointed as CfO under helge lund and be in that position for the next two years until he hit 60. During the morning jog hansen let his eternal "competition mode" decide and chose to join Aker Kvaerner. hansen's name and efforts were

instrumental in ensuring Aker Kverner's continued funding, and leading the company he got to practice much of earlier learned lessons. "The company had a number of projects, and some of them were rotten eggs. The most important thing is, however to prevent the mega monsters to evolve. A case that came to surface in the uK in 2005 had its origins three years earlier. had the matter been dealt with then, it would have had little effect. Now had a number of leaders had to go," says hansen. hansen delivered results in the star class. estimated unrealistic objectives were met far before the time. even so he abruptly quit as CeO shortly after turning 60. The farewell gift from the worker’s representatives was a certificate for a job well done, something he believes is the greatest recognition a top executive can get. The latest development in Aker he characterizes as "merely sad, unnecessary, and the only losers”. “In 2007 there were only 11 companies in the world that had a better reputation in its home market than Aker had. Now, the brand name Aker may be permanently damaged and trust built painstakingly through the years may be

destroyed,” hansen believes. Friends' friend After 38 years of management experience Inge hansen became a consultant. he has served or serves companies in Telenor, Avinor, hydro and gjensidige and smaller companies like Bertel O. steen and scatec (solar cells). recently he was appointed as a board member of first employer, Jiffy Pot. "I am concerned with lifelong learning and take on tasks that I care for, like speaking about leadership at the Police Academy and for the country police chiefs. It is nice to feel that you’re not outdated, and I am glad that so many still remember my sports career. But I am definitely finished with leadership positions," says hansen. he still exercises regularly and unlike many of his sports peers, he has avoided longlasting injuries. he still has friends from the early handball career in 1959. four couples and the widow of the fifth were recently on holiday to Tuscany. he has three children, no grandchildren, and in leisure time he reads fiction and commutes between a cabin in the forest and cottage by the sea.

FACtS ABout INGE HANSEN Inge hansen (63) spent ten years in international marketing before he the next ten years worked for banks with some of their largest problem engagements. In 1984 he became CeO of Orkla finans and in 2000 CfO in statoil, before heading the company in 2003. In 2004 he was headhunted by Kjell Inge røkke as CeO of Aker Kværner, a job he held until 2006. hansen is now an independent consultant with a number of board representations.

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SOCIAL DEMOCRAT He is the carpentersâ&#x20AC;&#x2122; son from Etne who with minimal education and ten years on the shipyard floor became a minister in two Norwegian governments, oil director and head of the Nobel Peace Prize committee. Meet Gunnar Berge (68).

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Text by: Helge Keilen hk@offshore.no

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In the Berge family home in the agricultural and power community of etne in hordaland were two large hardcover books: the Bible, and records from the hordaland County Council. his father was a carpenter who represented the labour Party in the etne local council. During the war etne functioned, among other things, as a recreational camp for injured german soldiers from the eastern front, and gunnar Berge recalls that the soldiers gave him a big, white sweets. he gained 50 cents to open the gate for vehicles transporting people to the power development in the mountains. sometimes his father smuggled him and his brother into the construction site and on sundays he and his father had extra job to lubricate the pulley on the cable car, violating every conceivable safety rule. young gunnar was politically interested. One of the favourite programs on the radio was "Parliament and administration," and he soon understood that it was possible to be born a social Democrat. With a small church, a school and general store and a bakery, sørbygda in etne was never going to be the centre of the world. Berge still recalls his shock when, at the age of eight, he first saw a living Negro, brought to the community by an enterprising missionary. later Berge was to compare the local parish church with the labour Party’s Peoples house thus; “It is just as much intrigue and solidarity in both places!” Steelworker The Berge family had no academic traditions. high school was a narrow needle's eye, and at 16 he took a job at a cannery on stord, as farm hand in Jæren and postman in his home community. It was only in 1957 he fulfilled his dream of becoming an apprentice at the rosenberg shipyard in stavanger, with an order to bring with him "work attire and a pencil". “The place was like a melting pot with great political rivalry on the left side. The Club chairman was a communist and it was not danger-free for me to belong to the labour Party. In the 2009 annual gathering in the labour Party, I was invited as a guest and met former union boss yngve haagensen. We both have 50 years of membership in the union and remembered how many worshipped everything that happened in the then soviet union. I quickly became a leader for apprentices and a steelworker group with 400 members, and joined the club board. It was a side job with office in the closet and

meetings in the lunch breaks. While rosenberg had previously been characterised by spontaneous strikes, in my nine years there was not a single strike,” says Berge. In 1958 he joined the Workers youth Organization (Auf) because he thought it was important to activate young workers, and in 1963 he was elected to the Town council of stavanger. “I had small children and my wife worked at home. I was working from early in the morning at the yard and sat in the town council meetings long into the night. I was often irritated and jealous at the upper class Conservative town council ladies who could make small talk until midnight, and did not have to rise early next morning. But I soon discovered that in politics it is often a long way from a decision to making things materialise," says gunnar Berge. Parliament work his job as a skilled ship building worker ended in the summer of 1966. his last task was to build parts of the rig "Ocean viking" that would later make the first major oil discovery in the North sea, ekofisk. Berge became county secretary in the rogaland labour party. Thought-provoking is the correspondence between him and the recently deceased party secretary haakon lie when Berge wanted the party to issue a much-needed bank guarantee for the purchase of a car. "I wanted a ford Cortina, but the party secretary said that a volkswagen was enough. I pointed out that I had three children, and for once haakon lie yielded. The following year I went to Oslo to a central position in the Auf. It was so poorly paid that I had to sell the ford Cortina and buy a used volkswagen. Thus haakon lie had his will in the end, also here,” laughs Berge. After two years in Oslo, he returned to stavanger as an AOf study instructor. At the parliamentary election in 1969, he was nominated from the rogaland AP in fourth place after einar førde, Arne Kjelland and gunnar skaug - all of whom have since passed away. Berge was elected into the Norwegian Parliament and his national political career had begun. The end of the 1960s were poor years for stavanger. The canning industry and the construction of large tankers at rosenberg verft were phased out. The possibility of oil

came as manna from heaven. A secret meeting in Berges' parliamentary studio in Oslo paved the way for what later would become Oil City stavanger. “As a member of the municipal Committee I invited my entire AP-fraction to beer and sausages, and municipal minister Oddvar Nordli came along. stavanger mayor leif larsen gave a vigorous account of the city's advantages. There were initial objections to stavanger, but the meeting activated the rogaland bench in Parliament and eventually stavanger got the majority votes in the first round," says Berge. Gros’ trusted Berge became a member of the finance Committee in the second period from 1973. Without a special economic background he studied and read textbooks, and sought economic advice from party finance ministry's experts. In 1974, gro harlem Brundtland became the first environment minister and deputy leader of the labour Party the following year. she was squeezed out of the Nordli government in 1979 and became a regular member of the finance Committee, which gunnar Berge now headed. “gro was effective and results-oriented, and learned much about the macroeconomics in the committee. When she became Prime minister in 1986, she wanted me as finance minister. she was a dedicated boss. everything that could not be explained in five sentences was useless. she was careful not to inflict visible defeat on her minister’s, but was happy to council them by saying "I have heard enough of what is impossible, now I want to hear what's possible!" I was finance minister for three years and it was enormously demanding. fortunately, I

<<As

finance minister I should have been an easy target for public outrage, but we had no Oil fund to spend.>> OffshOre & eNergy 3/09

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representatives in the Nobel Committee and its chairman from 2000-2002. he has had long private conversations with personalities such as south Korea's former President Kim da Jung, Kofi Annan and Jimmy Carter. “The most impressive personality was Kofi Annan. In Norwegian politics Trygve Bratteli is the person I have had the most respect for. from an impossible starting point he reached the top in politics," says Berge. he has not done so badly either, the carpenter’s son.

“fortunately I never got the abstinence that is normal for outgoing ministers”, says Berge.

had worked with macroeconomics in Parliament for 13 years and I had very good employees. shortly into my first year as finance minister oil prices sank from $30 to $9 a barrel. Norway had a large accumulated deficit and had to devalue the crown by 12%. In consultation with the minister of Petroleum and energy, Arne Øien, we implemented the most significant easing of Petroleum taxation. As finance minister I should have been an easy target for public outrage, but we had no Oil fund to spend and the understanding of the crisis among Norwegians was great. Today’s finance minister has a more difficult time. A finance minister must have the ability to say no - and yes in the right places," says Berge.

the oil. I contributed towards the employment of hagemann as Director and even today people work in the Norwegian Petroleum Directorate, who I helped to hire. When I arrived the NPD organisation had a set structure. I immediately created a management team of eight people and flattened the organisation and we introduced a more flexible qualification system of the oil industry. I was neither an economist nor a geologist, and had never led a large organisation. my strength was that I knew political structures and how far they could be stretched. shortly after I resigned in 2007, the Norwegian Petroleum Directorate received a high award for this impending reorganisation," says Berge.

Bastard with success Berge was vice president of the Industrial Committee in 1990 when he applied for the job as head of the Norwegian Petroleum Directorate after fredrik hagemann. he got the job with the condition that he would not take it before the National Assembly period was over in 1993, or even later if he was offered a new ministerial post. This happened. In 1992 he became municipal minister in the gro II government. It was not until 1996, after 27 continuous years, he could leave Norwegian policy.

he was not, however, ending his engagement in the oil industry. he became chairman of Petoro, the state-owned company which guards the interests of the state's oil and gas portfolio on the Norwegian Continental shelf. This includes more than 30 percent of the total reserves, and with ownership of over 30% in fields like Ormen lange and snøhvit.

“fortunately, I never got the abstinence that is normal for the outgoing ministers. I was no stranger to the Norwegian Petroleum Directorate. from 1972-79 I was a board member and travelled a lot and learned about

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FACtS ABout GuNNAR BERGE gunnar Berge (68) started working at rosenberg shipyard in stavanger in 1957. In 1969 he was elected into the Norwegian Parliament and he became finance minister in 1986 and municipal minister in 1992 in two separate Brundtland governments. In 1996 he left Norwegian politics after 27 years and until 2007 he was heading the Norwegian Petroleum Directorate (NPD). In 1997, gunnar Berge became one of labour’s representatives in the Nobel Peace Price Committee and its chairman from 2000-2002.since 2007 he has been chairman of Petoro.

“This construction is a bastard with success. After the creative dynamic between statoil and hydro disappeared in the merger, Petoro is becoming more important as a contributor in the large licenses. If Petoro had more resources we could contribute to even greater wealth creation," states Berge. Nobel Chairman In 1997, gunnar Berge became one of AP's

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Alf I. Larsen AS - Fabrikkveien 10, 4033 Stavanger Tlf: 51 44 35 00 post@ail.no www.ail.no Avd. Lina Trading - Kvamsveien 9, 5265 Ytre Arna Tlf: 55 39 51 00 lina@lina.no www.lina.no

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REPoRtAGE

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ROCKy III In the 1950’s there were two well known u.s. boxers, marciano and graziano, both with the nickname rocky. Inspired by these two, a youngster from stavanger also spoke with his fists in and after school. This gave him a nickname that still follows the active oil pioneer. meet rolf "rocky" Øverland (65). Text by: Helge Keilen hk@offshore.no The last members of the Norwegian Petroleum Pioneer Club are quickly approaching retirement. membership is offered only to those who worked in the oil business before 31. December 1970. After that early production started from the ekofisk field and then one is no longer regarded as a pioneer, but as a veteran, and this is quite another matter. Among the hard core of 134 members, ancient oil history becomes even more golden as years go by. One of the members contributing actively to this glorification is rolf Øverland, who after 43 years in the oil industry is generally still only known as "rocky". Rookie rolf Øverland was trained a motor mechanic, and had just finished with the military. The year was 1966 and an ad from ODeCO was looking for people from the Norwegian merchant navy or industry to work on the oil platforms in the North sea. he was not included in the first group, but at the next crossroads he was summoned. “my english was poor and I had to have a translator. ODeCO wanted people in the control centre of the rig and asked if I knew how to operate hydraulics, valves and radio systems. As a motor mechanic I had some background, including the installation of car radios. Curiously enough I was offered the job at NOK 12.50 per hour, altogether NOK 36,000 a year, with a week on and a week free. I accepted a job on the rig "Ocean Traveller." The job implied a maritime education and I was a rookie, knowing nothing about the pumps and ballast systems. radio experience meant keeping in touch with rogaland radio and vhf during the evening and at night after the radio officer had left work. fortunately, I shared a rig cabin with Ordin lima, a skipper from the shipping company

Bergesen who had moved up from deck boy and wanted to be more at home with his family. he taught me everything on board, and without him, I probably would have been sent quickly ashore again," says Øverland. Incidents and accidents In the first few years there were few safety regulations and Øverland experienced many incidents and accidents. five or six times the rig was evacuated due to poor weather, or because it took in water or lost anchor chains. There were cracks and damage on the rig, which meant more trips to the rosenberg shipyard for overhaul. As part of the key staff Øverland had to be on board while the others were evacuated. “People were often poorly treated. Beards were banned and a guy who would not shave went right on land again, because the bosses "could not see his facial expressions." Americans never tolerated communist goods. Asparagus, mushroom m.m. from communist countries such as Taiwan or China were thrown overboard. The same fate suffered lamb meat for preparation of the traditional Norwegian course “fårikål”. "No goats on our rig", shouted the Americans. ODeCO controlled everything and sensitive communication went over "ssB" (single Page Band) directly to the owner, and not through the usual channels. One time the rig had to return to the shipyard, due to leak in

one of the pontoons. In the ballast tank lima and I heard water dripping, and we discovered a 6-7 meter long crack where it leaked in water. had this crack been allowed to develop while in operation at sea, we would probably have capsized! At the time we had, among other things, regular fishing boats functioning as stand by vessels. During a heavy storm I had contact with the vessel sometime late in the night. some hours later the boat with the three onboard was seen floating with the keel in the air. I never saw any newspaper report about the accident. several times the workers on the drill floor had broken hands and had fingers cut off. It was a tough time," says Øverland. to South Africa Øverland did not participate in the ekofisk discovery with "Ocean viking" in autumn of 1969. The rig he was working on, "Ocean Traveller", had only made small discoveries of oil and gas and was on its way to new missions outside south Africa. “The journey from rosenberg yard to Port elisabeth took 89 days. The three British tug boats, each of 3500 hP, had constant machine troubles and at the equator, all three were hanging behind the rig. Wind power alone drove the rig southwards. Outside Angola, we were assisted by one of the world’s largest tug boats, and from there the journey went smoothly. In the three months

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of the oil companies have wonderful welfare agreements, working conditions and early retirement packages. The service industry is far behind. Apart from this, I'm happy with life.>> OffshOre & eNergy 3/09

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notice and we never knew how long we had to stay in the North sea. One trip was planned for 14 days, but became 29 days. One time I had just arrived home and I was summoned to the phone and had fly out again, this time for 31 days. In 60 days I was home four hours! In the long periods we had to wait on the rig or platform for those who solved problems in the queue ahead of us. service companies' employees were less worthy. I have stayed on 18-person cabins where service people came and went at all times of the day. sometimes when the rig was full we had to lie in the laundry room. Buzzing drying machines are not the worst. When the washing machine periodically stops, and turns the other way, it is almost impossible to sleep.

the trip lasted we also had some pleasant experiences. using potatoes and sugar "borrowed" from the cook, we produced liquor for personal consumption. In Cape Town it took the agent two weeks to collect the 14 Norwegians and ship dog smokey for further transport to Port elisabeth where we should live. I was just married and I and my wife moved to south Africa for the two years the job lasted. I earned NOK 70,000 tax free a year and an unexpected death promoted me to Barge engineer with the duty of 7 on 7 of instead of 14 on and 7 of. It gave my wife and me the opportunity to explore this wonderful country. for a Norwegian, Apartheid was a tough experience and business-wise there was no success, because the rig only drilled "dusters" along the entire coast from Cape of good hope to the mozambique frontier. Along the way we lost three men, two south Africans and a Norwegian, in various accidents. After two years, the rig was brought back to europe and this time the tow only lasted for 67 days, first to scotland, and then back to Norway," says Øverland. Service company employee In the autumn 1971 times were good and Øverland got job in BJ services. he soon experienced the difference between oil company employees and service company representatives. “There were no working hour’s regulations. We had to pack up and leave on one hour’s

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I was lucky to be at home during my first child's birth. Number two was a little different. even knowing that the birth was imminent I was not allowed by my boss to stay home, I just had to pack up and go. After a week onboard I learned that I had a son three days ago, but only after 10 days I could go home. Often when I was alone during critical pump works, it was impossible to relieve myself. Then I used the displacement on the cement unit tank and pumped away. In this way I contributed to a liter or two of oil in another million years,” laughs Øverland. Rising in the system rolf Øverland went ashore for good in 1979. By then he had personally had two experiences with a potential fatal outcome. During a mini blow out on the valhall and the drill floor was set ablaze, he and a handful others stayed on the rig while the rest evacuated to ekofisk. under the tow of the "Ocean Traveler" from south Africa back to the North sea, he was swept off the helicopter deck by the personnel basket ran by an inattentive crane operator. he managed to grip the basket and hung 45 meters above the sea, until he was hoisted up on deck again. BJ services wanted Norwegians to rise in the system and Øverland was well liked. his youth nickname had attached both offshore and onshore. few knew his full name, but everyone knew rocky. until 1999, he was operations manager, with responsibility for 15 rigs and 150 employees. he was offered the job as CeO, but without any financial background, he knew his limitations.

in full, and the responsibilities thus became tougher. I wanted to go offshore again, but was set to participate in sales and marketing department. I'm a social guy and it has worked well, but over the years the tendering processes become ever more frenzied. In addition, we were asked to reduce the price of already signed contracts," says Øverland. Become operator employed! Would he have done anything differently? In hindsight Øverland says that he would have begun in an oil company in the 1970s. “employees of the oil companies have wonderful welfare agreements, working conditions and early retirement packages. The service industry is far behind. Apart from this, I'm happy with life. I have two adult children and three grandchildren, and have been married the same fantastic wife all the time! Ball play has always interested me. In 2001, I had to give up football, but started with golf at a mature age and I have a 26.5 handicap, well enough to play on most courses in the world. I still have my offshore certificates, ready to go out again. Though, I've probably realised that at 65 year old, regardless of good form, one can hardly re-live the good old days. After all, I started in the industry when the rigs were "made of wood and the people of iron". Now it is perhaps the other way round,” says rolf "rocky" Øverland.

FACtS ABout RoCky øvERlANd rolf Øverland (65) has been working in the Norwegian oil business in 1966 and has been there ever since. since 1971 he has worked for BJ services on different rig assignments and in 1979 he went ashore for good. until 1999 he was operations manager and responsible for 15 rigs and 150 employees. he then joined the company’s sales and marketing department, where he still is.

“In these years QA and hse systems came

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20-09-09 22:46:10

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Offshore & Energy 3/09

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REPoRtAGE

THE VERy FIRST he was the first full-time Norwegian state bureaucrat to work with oil matters and was the secretary to the legendary Jens evensen. he initiated the oil department in Norwayâ&#x20AC;&#x2122;s largest bank and the led an international oil company before he retired to a job where he finally could use his original education. meet Nils B. gulnes (73).

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Text by: Helge Keilen hk@offshore.no

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20-09-09 22:46:16

Operational Program Cold Work Delivered by: Beerenberg - Quickﬂange - IK - Aak

“WHY HAVE LONG PRODUCTION SHUTDOWNS, WHEN COLD QUALIFIED TECHNOLOGIES ARE AVAILABLE?” PROJECT CASES PRESENTED

Several project cases will be introduced

Testing & Documentation > Documentation for the installation

STEPWISE PRESENTATION OF A COLD WORK COMPLETION

Torque tensioning > Demostrate the importance of correct procedure

Hot Tapping > Tap in to pipe systems under pressure

> Fire Sealing Benarx technology

Cold Cutting > Several available technologies will be presented

LIVE PROJECT COMPLETION

Quickﬂange > Cold ﬂange to pipe installation

Several different projects will be carried out simultaneously at high altitudes by professional climbers . A Rig has been custom built for the OTD exhibition.

Habitat > Pre pressurized tent - enables hot work to be carried out in all areas during production

Technologies & methods will here be shown in sequences for optimal understanding of possibilities available

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Registration must be booked in advance on the following mail address: evald.holstad@aak.no Contact person: Evald Holstad Tel: + 47 992 51 570

Exclusive guided tours: Lasts 90 minutes Bus shuttle from Arenum between Hall A and B

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REPoRtAGE

The ranks are thinning of those who were active when the Norwegian oil industry was started in 1960’s, but still there is someone with clear memories of those pioneer times. Nils B. gulnes was the first employee in the ministry of Industry to deal with Norwegian oil and gas matters. It began with a coincidence. Evensen and I from a neighbor gulnes learned that the ministry of Industry wanted to identify someone who would take the law exam in autumn 1964, who spoke english and would work with something called “the oil". The ministry had not received any applicants for the post of secretary in the mining office. “I finished my law exams before Christmas in 1964. so I went to the ministry and got the job over the table. I started 2. January 1965 and it took a long life before I finally practiced my studies as a lawyer. I knew nothing about oil. The Continental shelf Committee was already established by the legendary Jens evensen, and I soon took over as its secretary. evensen was a chieftain. The father was a wealthy meat producer and had taught junior to think business. foreign minister hallvard lange persuaded evensen to enter the foreign ministry, and the way evensen conducted his business was to typify the administration of the Norwegian oil up to the present time. At his suggestion the committee demanded, among other things, a processing fee of 10,000 dollars, a huge sum in those days, to handle individual license applications. When Phillips Petroleum applied to take over the entire Norwegian shelf, this was not taken seriously. They never received a response to their application! evensen said that you had to learn before you failed, and he launched an extensive traveling scheme to the oil companies and the authorities for advice. “Our first trip outside europe was to the united states and Canada, where we met, among other things, esso's loeffler, who was later to become the company's manager in Norway. he took us out into the gulf of mexico. evensen liked to drive the car and on our trips to the continent we took the ferry to Kiel, him driving and me at the maps. evensen had charisma and wherever we came, we were well received," says gulnes. Ekofisk-story some of these visits were to the uK, where oil drilling had started some years earlier. In Whitehall, london, I was advised that the drilling programme had to be carried and

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measured not in money but in a certain number of wells. This was a good advice. When Phillips Petroleum had drilled a number of dry wells in the North sea, they asked to drop the last well. The ministry referred to our agreement and stated that they, in that case, had to pay what the well would have cost: one million u.s. dollars (NOK 7.14 million). Phillips, which still had to pay rent for the rig unit, selected to drill and right before Christmas 1969 ekofisk was discovered. had the state taken the money instead of insisted on drilling, Norwegian oil history would have been different. We would eventually have found oil and gas, but several years later than we would have done so otherwise,” says gulnes. Another important principle was the state's participation in exploration, which was introduced in the second Concession round in 1968, after the Cod discovery. “This helped to increase the value of the NCs. The oil companies, who accepted state involvement, without having to pay, were to get their highest license priorities. Norway thus obtained a number of interesting state participation agreements that in its turn were handed over to statoil. It was really pioneering years. Norwegian shelf safety regulations were hand written by evensen and me at his kitchen table. since the Civil Aviation Directorate would not advise us, we had to learn from own experience. Together with the Air force major Andersen, we travelled around the world and tested different helicopters. many a time when the engines were cut, and we set course to the ground, I wondered what I was up to. When we wanted to establish a competitive tax system in 1965, evensen sent me on a delegation tour to the North sea countries. I had been in the ministry a month and a half and was thrown into deep water," says gulnes. Political acceptance In the first round in may 1965, the largest ever in Norwegian oil history, 278 blocks were announced. Of 11 applicants nine were accepted. The drilling program of more than 30 wells was estimated to cost NOK 600 million, an enormous sum at the time. “Because there were practically no overlapping applications, my applicant proposal was accepted almost unaltered. Jens evensen and I got a 15-20 minutes meeting with the government before then

<<had

the state taken the money instead of insisted on drilling, Norwegian oil history would have been different.>> Prime minister gerhardsen said "okay", and ministers around the table nodded. The practical side came next. under the leadership of the legendary Director general Knut Dæhlin we looked for new staff members and one by one they came; Olav K. Christiansen, fredrik hagemann and farouk al-Kasim. The latter was an Iraqi with an American wife, but the lack of Norwegian citizenship implied that he could not be employed directly in the ministry. The solution was to hire him as a consultant, but we discovered that he would get a higher salary than the country's prime minister. so, we went to the Prime minister Borten and asked if this was OK. Borten accepted immediately. It was a little easier to reach key politicians these days,” smiles gulnes. Non bureaucratic The constantly honest evensen would always have another person accompanying with at important meetings," says gulnes. “from the beginning, we were careful to avoid situations where anyone could doubt our integrity. We always paid our own expenses, but because you can get much information out of a lunch we obtained the ministry of finance acceptance that we, as the only state department, had a selfrepresentation account where we could invite the oil companies' representatives out to lunch. On the state regulative, of course. We were never paid for overtime, even though we often worked until midnight, just interrupted by a cheap dinner at Peking house in munch street. even after the discovery of Cod, it was uncertain whether the Norwegian Continental shelf contained commercial oil deposits. But the ministry had

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to expand its workforce and overnight 20 new positions were filled by geophysicists, geologists, technical draftsmen and civil economists. We were like a small oil company and put un-traditional methods to use. Core samples from the first NCS drilling were stored in the innermost room of the Government Garage. But we rarely took shortcuts. When Phillips presented us with its first plan for development and operation (PDO) for the Ekofisk field on two A-4 sheets, I tore it into pieces, and asked the company for proper documentation. It resulted in a truckload with documents and long hours for OKC (Christiansen)”, recalls Gulnes. Statoil established The Ministry carried three different hats; licensing authority, the security responsibility and economic responsibility for the business. This could not on for any length of time. A committee decided to divide responsibilities into a safety and a business side, while the

Ministry would ensure the licensing and management issues. This was the start of the Norwegian Petroleum Directorate and Statoil, followed by the traditional Norwegian localisation debate: where should these institutions be placed? “I thought that Oslo was a natural choice both geographically and from a recruitment perspective. This was however rejected by the industry minister Finn Lied, who decided that we should consider the cities Stavanger, Bergen and Trondheim. In Stavanger, we were received by the mayor and chief councilor Arne Rettedal and Konrad B. Knutsen who asked what they could do for us. We required office space and housing for the new staff, and Stavanger had answers ready. In Bergen we were met by the council's information manager who showed us to an empty factory building and some residential land far out in the periphery. Trondheim was not interested in the "dirty oil", they had the technical university (NTH)! I believe that Bergen with its size and educational institutions could just as easily have got the Norwegian Petroleum Directorate and Statoil if the city had been more forthcoming. But Stavanger was chosen, and the city has since proved absolutely worthy of the election,” says Gulnes. Bank and oil company Gulnes had his last working day in the Ministry 1. September 1973. After several months of quarantine, he established the Norwegian Credit Banks' (DNC) oil department, which contributed in part to the funding of the Norpipe pipeline, to oil companies (DNO) and to the large state funded projects (NORAD). After 12 years in the bank, he received an offer from Leon Hess, founder of the oil company Amerada Hess, to lead its Norway office. This he did until 2000, unfortunately without making a single oil discovery as operator. However, he made Hess known in Norway in a special manner. Before every Christmas politicians, bureaucrats, business partners and individual journalists received a large, elaborate toy car.

Even though the cars only cost $15 in retail outlets in the United States, Gulnes got the then finance minister Presthus' permission to send the cars to contacts in the Ministry of Finance. The cars have long ago become a collectible item. After he left Hess he joined the law firm Grette, as an associate. He had never practiced as a lawyer and had to start from scratch. He still has an office there. Among other things he is also chairman of the Natural History Museum, and was instrumental in the purchase from Germany of fossil Ida - The Missing Link, which recently received big press notices. Is he still seeing his colleagues from pioneer times? Yes, four of them are still gathering through their theater club, established years ago. He also visited Jens Evensen before he passed away, and they reminisced. He is a member of Oslo Rotary Club, and he likes outdoor activities and skiing in the mountains. And even after having traveled all over the world during large parts of his life, he still loves to travel. “Now I travel on my own account, and that is very different than business travel,” smiles Nils B. Gulnes.

FActs about nils b. gulnes Nils Gulnes (73) started in the Ministry of Industry in 1965 and became secretary for the legendary Jens Evensen. In 1973 he left to establish the Norwegian Credit Banks' (DNC) oil department. In 1985 he started as CEO of Amerada Hess’ Norway office, a job he held until retirement in 2000. He then joined the law firm Grette, as an associate, and is currently chairman of the Natural History Museum.

A popular Christmas gift - the Amerada Hess toy cars.

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SuBSEA

BUSy DAyS FOR AKER In every corner of the world you now can find an Aker Solutions subsea service division. the he largest servicebase constructed by the company, is located at Ågotnes – west of Bergen, at the Norwegian west coast. Here, there is plenty of work not only today, but throughout 2010. Text by: John Økland jo@offshore.no houston, Aberdeen, Batam, rio das Ostras, luanda or Ågotnes. Aker solutions is focusing heavily on the subsea market, and aims to be where it happens. With 5.200 employees in the subsea division, the company reaches customers all over the world, so to say. largest base in the world The sites mentioned above are just some examples of locations Aker solutions offers subsea services from. The largest department is found domestically, in Norway. In 1994 the company established a base at Coast Center Base, Ågotnes, west of Bergen.

since the establishment the base has grown rapidly and in April 2009 Aker proudly opened its third workshop here. since 2007 the company has spent 50 million Norwegian Kroner on expansions. Building 2.400 new square meters Aker solutions are certain it can offer its customers an even better service. from Ågotnes they are serving not only the North sea, but also international projects. The Ågotnes base employs approximately 400 people, making it the largest subsea service base in the world, in terms of manpower. Considerable interest Installation of the "christmas trees" is, along with the upgrade and overhaul of the trees and the recertification of well control equipment, the main activity at Ågotnes. In

2008, the turnover for the subsea business area at Aker solutions was 13.7 billion Norwegian Kroner. The backlog for the remainder of 2009, and whole 2010 indicates that there are busy days ahead. for 2010, the company has increased the capacity. - We have a lot of work in 2010, so it looks promising. There is great interest in new technology which enables recovery of more oil, as well as extending the production on the various fields. visund is an example where we have completed the upgrade of the subsea control system and the control system at the platform, including replacing old christmas trees with new trees. The result shows a great improvement in production. It has been a success, says sales manager eddie fauskanger at Aker solutions Ågotnes. he points out that the older fields have outdated equipment. Production at the visund-field started in 1999 and is a typical example of fields which need modifications to prolong the expected duration which was planned ten years ago. many, good data - We can replace the entire tree in some projects, but it may also be other solutions that are better suited for other projects. It may be adding new sensors which provide more accurate information to the control room top side, says fauskanger. With the oil companies' strong focus on extracting more from the fields, both modern drilling technology and control on this is needed. The amount and quality of the information of the data that flows to the surface becomes important in decision making. - Many of the christmas trees we maintains here at Ågotnes comes from the Troll field, says Eddie Fauskanger, sales manager, Aker Solutions at Ågotnes west of Bergen. Here in front of a Christmas tree to the Troll Number 82 (PHOTO: Arild Gilja).

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A Christmas tree from Aker Solutions. Photo: Aker Solutions

Illustration: Aker Solutions

FActs about aker solutions

- The current drilling technology is so good that you can drill in different angles and find several “pockets” where there is oil. Our challenge then, is to ensure that the data from the well to the top side improves. We need to develop good sensors and continue to improve the use of fiber optic cables, says Fauskanger. Need new projects Aker Solutions has a 30 percent market share of the subsea segment in the Norwegian sector, contributing to the total turnover of 13.7 billion Norwegian Kroner worldwide in 2008. This means many existing clients and projects that should be followed up. Although some new projects are being set on hold due to the uncertainty around oil prices, Aker Solutions at Ågotnes is optimistic.

- The maintenance market is not as sensitive as other segments in relation to the delays. But our technology developers will need the new challenges that arise with new projects. So, it is important that planned projects are initiated, underlines Eddie Fauskanger. The market forecast should however be good for Aker Solutions. Many recongizes the benefits of conducting oil and gas production subsea and sending it straight to a land-based facilities - instead of having platforms top side. The Ormen Lange field, where this happens, can quickly become the best practice for how the fields will be developed in the future, some say. - I think we will see more production controlled onshore, using modern subsea equipment. This will naturally depend on the distance from the shore, among other things, says Eddie Fauskanger.

Aker Solutions employs 5.200 people in the subsea segment and is located all over the world. Aker Solutions have 30 percent market share in the Norwegian sector, and a turnover at 13,7 billion Norwegian Kroner in 2008 in the subsea segment. The largest service base was officially opened in 1994 at Ågotnes, west of Bergen – Norway. A total of 400 persons have their jobs here. In April 2009 Aker opened their third workshop at the CCB base. The workshop gives them 2.400 new square meters for service and maintenance. In addition, they set up a local storage of 600 square meters.

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SuBSEA

THE SEABED’S BRIGHT FUTURE An even stronger focus on extending production time at oil- and gas fields provides FmC technologies t echnologies with great expectations for the subsea service market in the future. their subsea division at Ågotnes, west of Bergen, Norway, expects a significant increase in the Norwegian sector the upcoming years. Text by: John Økland jo@offshore.no fmC Technologies is the world’s largest supplier of subsea services and equipment to the oil and gas industry. fmC’s headquarter is located in houston, but all the services in the eastern region (europe and Africa) is managed from Ågotnes, near Bergen, at the Norwegian West coast. Approximately 800 workers at Ågotnes contribute to a turnover at more than seven billion Norwegian Kroner for the eastern region. Extends production Andreas helgesen, communications manager at fmC Technologies at Ågotnes says the service division has their hands full with maintaining and upgrading valve trees - also known as christmas trees.

market for service, maintenance and modifications. - The service market is very important for us. A christmas tree has a lifespan between 20 and 25 years. every tree therefore provides us with work in years to come, says Jarle eirik vangsnes, sales and business development manager at fCm Technologies. In their estimates for the years ahead they expect increased activity and use of new equipment in the market they operate in. All

the new trees will need maintenance and service too. In other words, the jobs at Ågotnes should be both secure and attractive. In addition, each fmC-contract means cash for local subcontractors in the region. - We estimate that in 2007 fmC-contracts generated between 400 and 500 million Norwegian Kroner in local currencies. At the same time, our activities have contributed to the establishment of more companies at the

- so far, installing trees has taken up about 70 percent of our activity. But now, the oil companies are increasingly focusing on extracting more from the fields, as well as producing more oil, and extending field life. most of the installed equipment has been in operation for many years now. By modifying the equipment, our new technology can help extending the production, helgesen says. he points to the subsea separations unit that will increase the recovery rate significantly. In oil- and gasproduction every extra percentage means huge values for both companies and society. Spin-offs fmC Technologies has a market share between 40 and 45 per cent in the Norwegian sector. The company has installed about 500 trees and this secures a large

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CCB base at Ågotnes, he adds. Expanding and Improving Demand measured against supply will always be the key for a service division. At Ågotnes, FMC had to expand and in 2007, the company built a new workshop. According to Helgesen, they are considering further expansion of workshop facilities at Ågotnes. Another action to get even more trees through service halls are working to reduce the service time for a tree down to only three months. In the "Pit-stop" project they prepare for every expected and unexpected problem before they start their service. Supervisor Stig Kalstad is now working on a christmas tree from the Heidrun field. - When a tree has been in operation on the field for several years, a need for upgrade and maintenance are to be expected. A major overhaul could be required, Kalstad says. He has had crucial role in the implementation of the “Pit-stop” project, which aims to reduce service time. - It has been a challenge, but this is the right way for us to work. We can be manned 24 hours a day to abide the deadlines, says Kalstad. This Christmas tree has been at the Heidrun field in the last eight years, and was sent to FMC at Ågotnes for service. - After several years in operation the equitment is always in need of some maintenance. Here at Ågotnes we can run 24-hour staffing to get the job done quickly, says supervisor Stig Kalstad. (PHOTO: John Økland)

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standards, new geographic areas and production in deep water down to 3.000 meters. All the challenges Vangsnes is eager to participate in. He mentions/explains that the production at such depths creates new demands for the equipment, which means opportunities for FMC. The company has its own technology division which is working hard to develop new technology for coming challenges. The Norwegian market will continue to be important to FMC, but the company has not ruled out projects elsewhere.

Starting in Turkey The future is increased life of the producing fields. But also strict environmental

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- A number of new countries around the Mediterranean are about to become a market. We are providing wellhead, tools and personal which have been used on an exploration well in the Sinop field in Turkey. Many players are currently taking an interest into these geographic areas, despite the small production the areas have today. We are also noticing that the market is growing in countries such as Egypt and Libya, he exemplifies.

FActs about fmc FMC Technologies at Ă&#x2026;gotnes employs approximately 800 persons. About half of the employees work on various offshore fields and projects. FMC at Ă&#x2026;gotnes is responsible for all the installation and service operations in the Eastern Region (Europe and Africa). Together, FMC have 3500 employees in this region. The Eastern Region has an annual revenue at about 7.2 billion Norwegian Kroner. Worldwide, the company around 10.000 employees, and the company is currently represented in 17 countries. In 2008, the revenue for FMC Technologies landed at 4.6 billion U.S. dollars. The Norwegian head quarter is based in Kongsberg.

20-09-09 22:46:40

Vi leverer teknologibaserte tjenester, kunnskap og utstyr for krevende anleggsmiljø gjennom hele livssyklusen AAK AS – flerfaglig arbeid i høyden utføres offshore og på landanlegg AAK Safety – rådgiver, kurs- og utstyrsleverandør for industriell sikring og redning AAK Dedico – inspeksjon og integritetsstyring rettet mot produksjonsleveranser og drift av olje- og gassinstallasjoner AAK IRV – leverer inspeksjons-, reparasjons-, og prefabrikasjonstjenester fra eget verksted på Vestbase i Kristiansund Leco Marine – leverer undervannstjenester, mekanisk arbeid, thruster-skifter og cofferdam operasjoner inshore og offshore

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Exhibition With more than 200 exhibitors and around 10,000 visitors, OTD will encounter a complete spectrum of suppliers to the oil and energy industry, and the OTD events offers the perfect venue for forging new contacts and cultivating existing ones. There is still a waiting list of companies wanting a piece of the action. A record number of visitors is expected in October! www.offshoredays.com

Conference The Petroleum Technology Conference is a must for everyone who delivers technology and solutions to the activities in and around the Norwegian Continental Shelf. The 2009 venue will be held in close cooperation with the StatoilHydro technology division which is headquartered in Bergen, and which will present their future technology strategy through key people in its organization. The conference language is English. www.offshoredays.com

20-09-09 22:46:42

Arenum Exhibition Centre, Bergen 14th - 15th October

Octoberfest

Students

The Octoberfest gathered last year 2000 people and had a waiting list consisting of more than 400 persons. Industry professionals will attend what have become Norway’s largest evening gathering for the oil-, gasand energy industry.

Tomorrow’s players in the oil and energy industry are an important target group for Offshore Technology Days. For this reason, students are offered a varied programme at OTD aimed at bringing them closer to potential employers and industry. Last year more than 1000 students visited OTD in Bergen.

The OTD Octoberfest has established itself as an important tradition associated with the Offshore Technology Days and its popularity may be because of its relaxed atmosphere and classified professional entertainment. www.offshoredays.com

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Student session The get-together will take place at the café in Arenum Hall B between 11.00 and 13.00, and lunch will be on the house for all students visiting OTD. www.offshoredays.com

20-09-09 22:46:44

tECHNoloGy

NEw TREE-TECHNOLOGy CUTS SPENDING Some of the world’s largest offshore gas wells are currently drilled at the deep-sea gas field ormen lange. Now Shell and Subsea 7 have found a smart way to save a great deal of money on installing Christmas trees. 250 million Norwegian kroner in the next two years, actually. Text by: Arild Gilja ag@offshore.no Drilling and completing wells through subsea templates in the harsh North Atlantic environment of the Norwegian sea, at these depths is a great challenge, It includes waiting periods for weather improvement, and trips ashore to mobilise and reload equipment. This makes the drilling operations a costly part of an operator’s project.

production manifold.

Ormen lange gas field.

At Ormen lange, running each Christmas tree from the DP drill ship in this way can take typically five to seven days for the complete operation.

similar techniques have been used before by subsea 7 on the Anadarko Independence hub project in the gulf of mexico, and in south Africa on the PetrosA project, but never before on a live template and in the North sea.

the mexican way - tree on wire It began when shell requested subsea 7 in October last year to investigate the possibility of installing a Christmas tree from a monohull construction vessel. A technique now referred to as ‘Tree on Wire’ at its

Tree on wire involves using a less expensive asset, i.e. a construction vessel, to lower the tree with its crane from the deck of the vessel into location in the template.

however, smart thinking from shell and subsea 7, using a method never attempted before in Norway, now enables projects to save time and money during this part of their operations. Actually, shell is convinced that they can save at least 30 million Kroner per tree. the common way The common procedure to install Christmas trees is as follows: Once a subsea gas well is drilled and cased and before the well is completed, the hole has to be plugged deep below the seabed and a structure called a Christmas tree is placed at the wellhead. This is a large, heavy structure, comprising an assembly of piping, fittings, transmitters and valves, which allow the control and monitoring of the well in production. Christmas trees at Ormen lange are usually ‘run’ from a Dynamically Positioned drill ship. The drill ship lowers the tree, which is locked on to a Tree running Tool (TrT) with a drill string. stands of drill-string are added until the tree is at the required depth. Once the tree is installed, the drill ship completes the well, before commissioning and production can commence through the tree to the

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monitoring of the installation, orientation of the tree, connection and testing is all carried out via the construction vessels remotely operated vehicles (rOvs), removing the requirement for the TrT and its associated umbilical. tree on wire Project The challenge was to install the Christmas trees into a ‘live’ manifold 850 metres deep in the Norwegian sea, during winter, in an installation window with a maximum wave height of 5.8 metres, the subsea 7 reports. One had to utilise unique tooling to perform all the operations normally performed by a drill-rig, all with a very aggressive schedule of around five months from conception to completion. early work on the project began with a feasibility study and peer reviews, following which offshore trials were carried out at sea and in a deep water fjord. subsea 7 played a essensial role in ensuring that its master/ quality procedures were in sync with that of other sub-contractors on the project, and with those involved in rOv tooling operations at subsea 7’s Kristiansund base in Norway.

however following the success of the first two trees, another two were brought forward in the schedule to be installed immediately afterwards. four new trees have now been successfully installed at Ormen lange, incident free, using the Tree on Wire method, from the subsea 7 construction vessel ‘skandi seven’. The method is a quicker and more flexible solution, reducing time between installation and commissioning and most importantly, freeing up valuable time for the drill ship allowing the ship to continue drilling, leading to accelerated production, with more wells coming on stream earlier. Saving big money The method is also extremely cost effective - shell has put a minimum cost saving of $4 million per tree installed using the Tree on Wire method. To date, subsea 7 has installed four trees for shell using this method, with three planned next year and four in 2011 – a significant cost saving in the region of $44 million.

FACtS ABout tHE oRmEN lANGE The Ormen lange field is the largest natural gas field development on the Norwegian continental shelf. The field is situated 120 km northwest of Kristiansund, where seabed depths vary between 800 and 1,100 metres. gas from the Ormen lange field meets up to 20 percent of Britain’s gas demand, and will continue doing so for the next 40 years. 24 subsea wellheads in four seabed templates on the ocean floor will be connected directly by two 30 inches pipelines to an onshore process terminal at Nyhamna. After processing the gas is exported by the world's longest subsea export pipeline - langeled pipeline approximately 1,200 kilometres to easington in england.

Four already installed Initially only two installations were planned

Subsea 7’s construction vessel ‘Skandi Seven’ (to the left) has so far installed six Christmas trees at Ormen Lange (above) with the new cheaper method. Photo: Subsea 7.

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tECHNoloGy

NoBlE PutS uk ASSEtS tHE mARkEt News from offshore247.com

Noble Energy has decided to put its assets in the uk North Sea area up for sale with a price tag thought to be in the region of uS $600 million. A data room has been opened so that potential buyers can view the assets which are on offer. Noble owns minority stakes in a number of uK North sea assets including four Central North sea oil fields, plus four fields in the uK southern gas basin, plus development and exploration assets. On offer is a 30% stake in the Dumbarton and related lochranza fields operated by maersk which uses the global Producer III fPsO, plus 14% in the ConocoPhillipsoperated macCulloch field, as well as 12.89% in the shell operated Cook development; 10%

in Talisman's fiddich; 30.5% in Nexen's selkirk project, plus 22.5% in the flyndre development, also operated by maersk, and 19% in the Bligh development, operated by venture Production – now owned by Centrica. Noble's uK southern North sea assets comprise interests in the Perenco operated lancelot, malory and guinevere fields, plus 20% in rWe's Windermere gas field Offshore The Netherlands, Noble also holds between 9% and 15% in the suncor/ Petro-Canada operated hanze oil and gas field. Additionally Noble energy europe limited holds interests in a number of North sea developments exploration acreage plus a small onshore portfolio. “The offering provides potential buyers with

a unique opportunity to acquire a heavily (>90%) oil-weighted portfolio of producing, development and exploration assets, all of which have strong North sea operators,” said scott Waterous, which has been appointed by Noble energy to act as a broker to sell the assets. One report by reuters citing us-based analysts has suggested the package is worth between us $600 m and $650 m. “The production level net to Noble is expected to reach 16 m boe/d by Q1 2010, with net reserves of 20-30 m boe from the producing fields and 8-18 mmboe recoverable from developments,” the broker has indicated. Bids for the assets are due by 21 October, and a timetable set out by scott Waterous indicates bids will remain open until a 30 November deadline.

Vi tilbyr en fremragende servicepakke innen tetningsteknologi for olje og gassindustrien. Med et stort produktspekter, det største lageret av metalliske pakninger og myktetninger i Europa, er vi alltid tilgjengelig hele døgnet hele året. Besøk vår stand på Offshore Technology Days – vi ser frem til å treffe deg!

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OffshOre & eNergy 3/09

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MORE AND MORE GREEN SHOOTS EMERGING despite residual complaints from some players in the oil and gas industry – some linked to declining North Sea reserves, others the pullback in oil prices, still others linked to cutbacks in contracts to service and supply groups by the majors – more and more anecdotal evidence is emerging of the appearance of so-called green shoots. Text by: John Bradbury jpbradbury@btinternet.com Norwegian floating production player, BW Offshore, for example, now says that despite some more short term pain for its industry, the longer term outlook is sound – despite the Oslo-listed group posting a dive in second quarter operating revenue in August to $114.9m compared with $124.8m for the same period last year. BW Offshore posted Q2 core earnings or eBITDA also heavily down, at $31.8m against $34.5m last year, but the company saw down the track some long term improvements. "We are of the opinion that the long-term

fundamentals of our business are sound. underlying growth in energy demand combined with accelerating depletion of existing fields, will necessitate the development of new oil and gas fields," it said in its quarterly report. "The investments in new facilities by international and national oil companies will lead to continuing demand for the services provided." CeO Carl K. Arnet has said that the plunge in operating revenue amounted to $114.9m was mainly because of decreased activity level in the Technology and Installation services division of the company. Silver lining from floating production But the silver lining is that floating

Production revenues were actually up in Q2 at $52.4m against $43.2m previously and that unit's core earnings or eBITDA was $22.3m against $21.6m. To be fair, the company also sees more pain overall. "The effect of the turmoil in the financial markets and the lower oil price has impacted negatively on the development of oil and gas fields internationally," it said in a statement. "In the short term this has resulted mainly in postponements of new projects. It has also resulted in changes to the competitive landscape with fewer competitors pursuing new projects." But other companies have also come out with a sense of turning fortunes. Oslo-listed siem Offshore – the owner and operator of support vessels for the oil and gas industry – in early september came out with a bullish assessment for the industry. It told a presentation to investors that the recession “will end” and economic activity will increase. oil demand to increase says Siem siem CeO Terje sorensen said in the presentation that oil demand will increase as a function of growth in the world's population and gDP. The offshore contractor said oil production from existing fields was in decline. "The activity in the offshore oil and gas industry will increase," the company said.

“We need to be prepared for periodically lower oil prices”, says Statoil CEO Helge Lund. Photo: Trond Isaksen / StatoilHydro

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siem, which has 27 support vessels in operation and 13 vessels under construction, added that the offshore oil and gas industry

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will more increasingly rely on deepwater projects. statoilhydro doesn’t deny that things in the short term will be tough, especially with pressure on costs and the decline in North sea fields, but it sees light at the end of the tunnel too. On september 2 CeO helge lund told investors at the Pareto oil and oilfield services seminar that his group was on track to meet its 2009 production target of 1.9 million barrels of oil equivalents per day, with production outside Norway currently running at 500,000 boepd. lund said he saw continuing volatile energy markets in the coming years, but that there was hope. “The market is still volatile, so we need to be prepared for periodically lower prices,” he told the conference. long term upward movement seen by Statoil “But we will see a long-term pressure upward in the oil price and we expect OPeC to maintain its discipline.”

out for acquisitions and organic growth – and the Chinese energy companies have recently increased their acquisitions activities, buying up smaller western-owned assets and signalling they have an appetite to buy more in the shorter term. meanwhile, seadrill itself said it saw the market for drilling services to be firm in coming years, although it added the rider that there were downside risks in the shorter term because of competitive pressure on rig day rates. The Norwegian oil driller said lower crude prices sustained during the international economic downturn had damaged profits for many oilfield services companys, but seadrill was nonetheless confident that crude prices were back on an increasing longer term trend. “We expect a sound deepwater market going forward,” CeO Thorkildsen told those attending the Pareto oil and oilfield services conference. Thorkildsen argued that activity in the drilling services sector had improved “significantly” from the position of a near freeze at the start

of 2009. And finally the world’s biggest independent oil tanker shipping group, frontline, was talking of a global recovery when it released its second quarter results late in August. Frontline bullish on global economy Oslo-listed frontline reported a lower than expected fall in Q2 profits and caught the attention of investors when it said it would look for growth opportunities in a volatile tanker market. “The increased volatility in the market is likely to create interesting opportunities for growth and consolidation,” the company said in a statement. frontline added that China’s plans to increase its strategic crude reserves, as well as higher production from Iraq in the next few years – as well as a global economic rebound – were bullish factors when looking at the outlook for the world tanker market. “furthermore, floating storage is still an attractive option, which is likely to continue to give fundamental support to the trading market,” the group concluded.

merger and acquisition activity could also soon be on the rise for the Norwegian oil and gas industry. Norwegian rig operator seadrill revealed in early september that it was considering making acquisitions and could buy into both the jackup segment and deep water segment. seadrill management CeO Alf C. Thorkildsen told daily business newspaper Dagens Naeringsliv that Pride International had “interesting” deep water rigs.

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“We have to see if we can do something together,” he told the paper. seadrill already has 10 percent of Pride International and Thorkildsen refused to rule out the possibility of buying more stocks in the group. seadrill is also looking at the situation with scorpion Offshore in which seadrill has a 40% chunk. synergies would seem to be obvious here with seadrill having seven jackups while scorpion has six jackups. more mergers and acquisitions possible On the other side of the waters, new uK North sea operator Taqa Bratani in september clearly signalled its intentions with a £500 million spending spree mapped

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OffshOre & eNergy 3/09

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Offshore & Energy Offshore & Energy ble startet i 1982 og har siden hatt samme redaktør, Helge Keilen. Magasinet er kjent for sin uredde journalistikk, og seks faste journalister jobber kontinuerlig for å gi leserne et dypere innblikk i det som skjer i industrien. I tillegg kommer en rekke freelance- og gjesteskribenter. Offshore & Energy er et abonnementsmagasin som gjennom gode distribusjonssamarbeid med blant annet SPE og Achilles når nøkkelpersonell i oljeselskap og leverandørbedrifter. Vår redaksjonelle styrke ligger i erfaring og uavhengighet, der erfaringen sammen med spisset kunnskap og kompetanse sikrer siste nytt innen de enkelte fagfelt, og uavhengigheten sikrer et nyansert og ufarget bilde av dette. Fagpressen opplyser om at magasinet har en fast distribusjon ut til 10 339 adresserte abonnenter og i tillegg kommer konferanse- og messedistribusjon. Utgivelsesplan 2010 1. utgave Materiellfrist 26. februar – Slippdato 22. mars Tilleggsdistribusjon: MOD, OTC

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Being bullish on the green sector Ask one of the companies which was at Offshore Europe about the prospects for the offshore renewable energy market and he will be bullish to say the least. Text by: John Bradbury jpbradbury@btinternet.com Blair Ainslie, managing director of Oslo-listed Seajacks UK which has landed deals for both of his self propelled jackup boats until 2011 is very happy with the way this particular part of the energy sector is developing.

Just recently his company has picked up a two-well intervention and workover commitment in the Dutch sector of the Southern North Sea working for Taqa in the P block area, which will be performed by the Seajacks Kraken between November and January 2010. Thereafter the Kraken is committed to work for DONG Energy from May 2010 for 15 months, installing facilities for the Walney 1 and II wind farms in the eastern Irish Sea off the UK west coast, valued at between US $70 and $79 million. And the second vessel owned by the company, Seajacks Leviathan, which has just been delivered to the Vlissingen construction yard in The Netherlands, is having thrusters installed and after sea-trials will start with main contractor Fluor on further wind farm work, installing equipment for Scottish and Southern Energy’s Greater Gabbard wind farm, off the the Sussex and Essex coast, which is currently the largest offshore wind farm development in the UK sector, with 144 turbines. “I think the potential for any company involved in the offshore wind business is huge,” says Ainslie. Why? “Because the targets that have been set for production from renewable energy are high, and given the current supply [situation] in the industry that is a tough target to meet and it gives the offshore industry a great opportunity to expand.” And a third UK offshore licensing round for the creation of wind farms has provided a further spur to the market, with the potential to create up to nine different development zones around the UK, each of which could feature several new offshore wind farm developments. Awards for that third round are to be announced in November this year.

“Each zone could have up to 1,000 turbines,” says the Seajacks boss. With perhaps only two Gigawatts of energy currently produced by UK offshore wind farms and a target of perhaps 35 GW by 2020, it is no wonder Ainslie talks with a smile on his face when he considers the future for his company. So are just two installation vessels enough? “We are looking at vessels three and four,” says Ainslie, “which could be replicas of the Kraken and the Leviathan. And we are looking at alternative designs, not just for installation but also [wind farm] maintenance work.” A replacement for the Leviathan would represent an investment of around US $130. But more offshore renewables work will have to be secured before Ainslie’s company could commit to such a big investment. Both the Kraken and the Leviathan have been contracted until the fourth quarter 2011. “Increasing the contract coverage will enable us to raise the finance,” said the Seajacks boss. Last year his company made US $70 m turnover, with about 20% derived from oil and gas operations, but the lion’s share, 80%, came from renewables. “And going forward I see that proportion increasing,” says Ainslie. “Oil and gas is there but offshore wind work is coming in at a such a pace, with such a desire from the operators, and a willingness to commit to contracts early and at very good dayrates.... I have used the word bonanza in a conference earlier this year.” The reason for the upbeat feeling in the offshore renewables says Ainslie, is underpinned by the level of commitment to renewables on the part of the government, by setting a target for sourcing 20% of UK

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energy from renewables by 2020 and possibly 30% by that date. Doubling of the value of renewable Obligation Certificates, the government backed mechanism which provides economic support for every megawatt of renewable electricity generated, has helped the market too. “It is driven by politics. And people want their energy to be clean,” he adds.

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NORwAy SLASHES BARENTS SEA RESOURCE ESTIMATES Norway has slashed its projected estimate for Barents sea oil and gas resources by 8-9%, adding that it will be hard to meet its 2005 to 2015 growth targets for the Norwegian Continental shelf, the Norwegian Petroleum Directorate announced – in a development that gives even more weight to the debate on whether exploration and production will go on soon off the environmentally pristine and protected lofoten Islands. Text by: Patrick McLoughlin pm@offshore247.com The oil industry is licking its chops at the prospect of accessing the visually wondrous and pristine lofoten region – and the NPD has been helping to build the intellectual case for tapping a region believed to contain 2 billion barrels of oil with a succession of seismic surveys in the region, studies of the fishing conditions there and what impact oil production might have, while the oil industry has been negotiating with the fishermen to wear down any concerns. The environmental activists have long had a strong campaign to preserve the sanctity of one of the world’s last largely untouched marine paradises. This latest NPD estimate, released in september, is yet another in a series of salvos from the industry in the run up to a possible vote in the Norwegian parliament on the region, which is one of the last major stretches of Norwegian coastal waters that has been closed to exploration. Analysts say that drilling off the archipelago, which pushes into the North Atlantic over the Arctic Circle has been barred for many years by political divisions and disputes about it within Norwegian politics. Norway’s oil industry, for its part, not only

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wants to revitalise the mature oil fields but also to add to the developmental momentum of the country’s growing gas fields. Grim reading from report The NPD resource report is issued every other year, providing an up-to-date overview of the resources and activities on the Norwegian continental shelf and the latest review made grim reading, with the directorate saying that reserve growth in the last couple of years has been very low. “In 2005, the NPD set a goal of increasing the oil reserves on the Norwegian shelf by 800 million sm3 (standard cubic metres), or 5 billion barrels by 2015," it said. "It appears that this goal may be difficult to achieve. The NPD assumes that about 75% of the growth in reserves must come from fields already in operation," it added. The NPD said it had updated its resource estimate for the Barents sea. "The estimated recoverable resources have been reduced, from 1030 million sm3 o.e. (oil equivalents) to 910 million sm3 o.e," it said. "estimated volumes of oil and gas in the ground have increased somewhat, but the recognition of poorer reservoir properties than expected, distance to the market and costs associated with development solutions have reduced expectations for the percentage of these resources that can be

produced," it concluded. Those facts will give added ammunition to those who back exploration within the storting or Norwegian parliament. following the national elections in september, analysts are anticipating yet another push within the parliament to get approval for drilling. Parties lined up against each other ranged up with the labour party, which supports exploration is lO, Norway’s main trade union which thinks that exploration and production would build jobs. The smaller political parties, however, have long been strongly opposed to an area rich in fish and which is perceived as perfect for environmental tourism. In the meantime, the NPD has been busy building up more and more information to open up the area rapidly if and when the parliament backs exploration. In early August it announced that seismic data acquisition had been completed in Troms II, southwest of senja and that acquisition would continue for a few more days in Nordland vII in vesteralen. The NPD added that acquisition in Troms II had gone completely to plan and a total of 805 square kilometres of 3D seismic had been acquired. According to the statement, the acquisition

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was concluded one week ahead of schedule as the NPD now believes the data basis for Troms II is adequate to provide the storting with the necessary technical assessment of the possibility of petroleum in this area. The data will now be processed and interpreted, and sissel eriksen, NPD’s exploration director says that she believes the results will be submitted to the ministry of Petroleum and energy during the spring of 2010. A revised management plan for the Barents sea and the areas off lofoten and vesterålen will be presented to the storting during 2010. The weather conditions during the acquisition were good, and the cooperation with local fishermen was excellent, according to the fisheries expert on board the seismic vessel Ocean explorer. The NPD said there were no disruptions due to poor weather, and the seismic vessel have gained access to most of the area which was planned to be covered with 3D seismic. Fishermen accept buy-out agreement Indications from the NPD seem to be that many fishermen in the area have come out on the side of the oil industry and exploration. The NPD says there has been and continues to be some fishing activity off Bø in vesterålen. This means there will be some blank spaces in the area also after this summer’s seismic activities, but the NPD has otherwise acquired data in all the prioritised areas. The NPD exploration director sissel eriksen said she was satisfied with the summer’s data acquisition, and “pleased so many

fishermen accepted the NPD buy-out agreement.” The NPD entered into agreements with approx. 120 fishermen who normally fish in Nordland vII and Troms II during the summer. ”This gave us access and enabled us to do our job, as we were asked to do by the storting,” she says. The summer’s data acquisition concludes the authorities’ seismic activities in Nordland vII and Troms II. The storting has allocated a total of approx. NOK 400 million ($67.5 million) for the mapping of potential petroleum deposits in the area. seismic acquisition has been conducted during three seasons, in 2007, 2008 and this year. The NPD-funded consequential research project in vesterålen, conducted by the Norwegian Institute of maritime research, will continue after the completion of seismic data acquisition. The project will continue until fishing has returned to normal. The NPD says the primary objective is to gain more knowledge on the startle response seismic has on fish and how long the fish stay away from an area following a period of seismic. meanwhile, industry majors such as statoilhydro are continuing a relentless charm offensive to persuade the locals in the lofoten region to back exploration. Helge lund on charm offensive In June statoilhydro Chief executive helge lund was at a public meeting in svolvaer, lofoten, and telling people about potential local spin-offs from the oil and gas activities, and to co-operate with fishing interests. “We believe that it will be perfectly possible to bring ashore any finds in the Nordland vI

NPD exploration director Sissel Eriksen (Photo: NPD). StatoilHydro Chief Executive Helge Lund.

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FIEldS

and vII blocks,” lund told the meeting. “Our surveyors underpin this.” statoil is trying to convince the people that it will develop finds off the coast in Nordland country with small facilities on the sea bed which would not hinder fishing. “Whatever solution we choose it will be natural for us to establish a local operations organisation and a new local oil spill response base,” lund said. lund issued an invitation to local firms. “I cannot promise a specific number of jobs or the size of local income,” he said. But we will use our experience and expertise to ensure that local business and industry gets the greatest part of the value created,” he added. While the smiles and handshakes with the lofoten locals goes on, the industy is not yet done with trying more exploration in Arctic waters to pump up the reserves further.

Russian and Norway join hands in Barents Sea In August, russia and Norway announced that they will work together to map the floor of the Barents sea. The Norway Post reported that russia and Norway will map the unchartered territory around the svalbard archipelago as well as in the Barents sea. The Norwegian Petroleum Directorate, the university of Oslo and the russian geological Institute are working together in the mapping mission. The Akademik Nikolay strakhov, a russian research vessel, will conduct most of the surveying. The NPD has estimated that early 70$ of Norway’s undiscovered oil and gas reserves are to be found in its far north.

marine research and the NPD met in the oil capital, stavanger, on August 25, for a briefing about the progress of the research project on so called “startle behaviour” in fish, in connection with the NPD’s seismic data collection vesteralen in the summer. Fish startled by seismic surveys The research project has been financed by the NPD and is being implemented by the Institute of marine research. The project has a budget of about NOK 25 million. The NPD said this project aims to determine to what degree fish are startled by seismic and how long this startle effect lasts. The field phase of this research is now nearing completion. extensive and very successful data collection over several periods has been carried out to map large-scale fish distribution, fish behaviour and sound propagation in the seismic survey area and in a nearby control area.

Trivsel i fokus The NPD still hasn’t ceased with its own activities, either. It says representatives of the Institute of

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Comprehensive, controlled fishing trials have also been carried out with nets and long lines from leased coastal fishing boats. Overall, claims the NPD, this has resulted in good data for herring and blue whiting and for the bottom fish species greenland halibut and Norway haddock. The NPD further claims that data obtained through the research project is considered to be solid and sufficient to provide a basis for scientific conclusions relating to the startle effect in fish as a result of seismic data collection in the area. The substantial amount of data which has been collected will now undergo thorough analysis before the results can be made public. The final report from the project will be submitted to the Norwegian Petroleum Directorate no later than 1 march 2010.

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THE LATEST NEwS from offshore247.com FIRSt SEvAN voyAGEuR CARGo oFFloAdEd further proof of the use of new floating production technology in the uK North sea was provided by sevan marine as the first oil cargo was offloaded from the sevan voyeur round-hulled fPsO stationed at the uK shelley field, now operated by Premier Oil. shuttle tanker Betty Knutsen completed the offloading of the first oil cargo said fPsO owner sevan marine, just a month after the shelley field came onstream. sevan voyageur is the third round-hulled fPsO to be deployed offshore, with a second unit at the uK Chestnut field and a third operating offshore Brazil on the Piranema field.

SCottISH FABRICAtoR SEEkS NEw SPACE scottish offshore fabrication specialist Burntisland fabrications signalled its desire to acquire another construction facility as it anticipates a rise in demand from the renewable energy sector. Bifab, with two construction yards north of edinburgh on the firth of forth at Burntisland and at methil is looking to expand after securing research and development work two years ago for the first deepwater offshore wind farm near the Beatrice oil field, from Talisman energy and scottish and southern energy, for the Downvind project. Bifab says it expects a big rise in the demand for fabrication of support structures for offshore wind farms going forward.

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Text by: John Bradbury jpbradbury@btinternet.com

NoRwEGIAN oIl PRoduCtIoN CoNtINuES to FAll Norway's oil output dropped to a preliminary 1.91 million b/d in August on average, down from a total production level of 2.07 million b/d in July, the Norwegian Petroleum Directorate said. Output of natural gas liquids (Ngl) and condensate moved up higher to 350,000 b/d compared with 283,000 the previous month, the NPD said. venture team take their leave senior staff at venture Production signalled their intention to step down as Centrica takes over the company. Chief executive mike Wagstaff is leaving Aberdeen-headquartered venture, along with finance director Peter Turner, and corporate development director rod Begbie, who will all leave after the company's shares are delisted, which is anticipated in October.. Company secretary simon Waite is also to leave at the end of next month. Chief operating officer Jonathan roger will remain to manage venture's daily operations, in both Aberdeen and in hoofddorp in holland, and will report to the new executive

director of venture Plc, mark hanafin, also managing director of Centrica energy. “ I'd like to pay tribute to mike's leadership of venture and his success in developing the business over the last ten years,” said hanafin. “Peter, rod and simon have been key figures in venture in recent years; I'd like to take this opportunity to thank them for their contribution to venture and to wish them success for the future.” venture was founded back in 1999 with the aim of acquiring and development stranded assets in the uK North sea. Initially it had just 200 boe/d of oil production by taking over the Trees fields in the Central North sea, its first asset deal, and since then has managed to grow production to 52,988 boe/d. Despite resistance from key venture shareholders, maidenhead-based utility Centrica finally emerged as the victor in a hostile takeover battle which took place over the summer.

NEw FAlklANdS RIG CAmPAIGN london-listed Desire Petroleum signed a deal with Diamond Offshore Drilling for a four well exploration drilling campaign in the falklands Islands in the south Atlantic. Desire signalled that it had signed a letter of intent with Diamond to take the Ocean guardian semi-submersible rig down to the North falkland Basin, 11 years after the last exploration wells were drilled in the region. Ocean guardian is already operating in the North sea and will mobilise to the south Atlantic in November this year, Desire stated,

and the rig is due to arrive there next february 2010. “The Board of Desire is delighted to be able to report ….news on securing a rig to drill our prospect inventory in the falkland Islands,” said Desire chairman stephen Phipps. “subject to the anticipated timing, we will be commencing activity in early 2010, where we intend to explore as many play types as possible, thus maximising our chances of success,” he added.

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FIEldS

HUNTING HIGH AND LOw he is the farmers’ son from Jæren who owns 30-40 companies with 2100 employees and he was a Kroner Billionaire a long time ago. In 2006 he became Norwegian entrepreneur of the year and he is an avid hunter. meet ståle Kyllingstad (49).

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Photo: Kjetil Alsvik

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Text by: Helge Keilen hk@offshore.no

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FIEldS

ståle Kyllingstad seems to be in a constantly good mood. his broad local dialect is not always easily understood, but his actions speak for themselves. A year and a half ago he could have sold 49% of his IKm gruppen for between NOK 1.5 and 2 billion, which rated his net worth at over NOK four billion. he had other plans. his long-term object is for his group to double annual turnover to NOK 10 billion, with an operating profit of NOK 500 million, although there is good reason to suspect that he will not be satisfied even then. Creative adolescence ståle grew up on a farm where three generations lived together. he was number three in a family of five boys and one girl (the baby). Three of them lived in the same room. until 1972 when they moved into a new house the family accommodation had no WC. In contrast to most of his peers ståle replaced collecting goldfish in sunday school with hunting with his father. his business sense was early quite visible as he "borrowed" tobacco from his uncle and grandfather, and sold it on to classmates with good profits. he never smoked himself, though. his first real job was offshore. “I was employed in a catering company and washed toilets. This was in 1979 and times were good. In an hour's notice, I had to shut down the tractor and fly into the North sea. After 16 days I could return home having earned NOK 14,000, which was very much money at the time. We Jæren boys were popular because the farming culture had provided us with good work ethics. After a year in the Kings’ guard I went back to the North sea as a cinema assistant and cleaner, tidying among other things piles of porn magazines. There were many peculiar people in the catering business, so I learned a lot about people and about the service. At the same time, I quickly concluded that this was not my future life. fortunately, I always could turn night and day on a penny so every time I went ashore again, it was a pure summer vacation," said Kyllingstad. Full Control however the petroleum industry tempted him again and after five years at university College in stavanger, Kyllingstad became a petroleum engineer. he had worked with schlumberger, and was close to accepting a job there in 1984, but chose to continue in school. In 1986 he got a job at hydrotech As working on calibration and measurement

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techniques. After six months he was promoted to department manager and quickly turned minus to plus by renegotiating framework agreements, leasing out people and introducing new techniques. starting his IKm in July 1989 was pure coincidence. he had been offered to buy the department he led, which dealt with Instrumentation, Calibration and measurement Technology (hence the IKm), and via various operations, he became the sole owner of what is now the IKm group. “seeing how the owners of hydrotech As disagreed and, and lost focus in good times, I wanted to have full control. sole ownership simplifies the decision making process, but on the other hand you take a lot of risks. I had bought a house and met my current wife in 1989 when we mortgaged everything to invest in IKm, but I felt I had good self control and saw more opportunities than problems. But times were tough. A bankruptcy of the parent company hydrotech resulted in halving the number of customers in three months. Thus, for many months the whole of my salary and NOK 1500 of the wife’s salary went to repaying interest on the bank loan. We ran the entire company after simple principles - using less than you earn - and had no budget prior to the mid-1990s,” recalls Kyllingstad. Gold beads Kyllingstad still has many employees who have been involved since the beginning. Along the way, he started growing new companies under the umbrella IKm. The procedure was the same: more sales to existing customers, and analysing what good competitors did. simple and easy. since 1989 the group has earned money, except in 2000, which was a painful experience that Kyllingstad explains thus: “you are allowed to employ the wrong people, but you have to do something about it. We had hired a good scaffolding man, who after a while acted on behalf of the company. When I went on my first vacation to the south, he signed up two jobs that inflicted a loss of NOK 10 million,” says Kyllingstad. Asked about one of his biggest blunders, Kyllingstad characteristically recalls a trade that he could have done even better. In a deal with Kaefer energy, he earned over NOK 100 million in a few years, but he should, by his own calculations, have earned a least 100 million more, if the agreements had been perfect. A real golden goose opportunity

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ran the entire company after simple principles - using less than you earn - and had no budget prior to the mid-1990s.>> came in 2003 when the rosenberg verft yard was in dire straits. A group of stavanger investors bought the yard for "under NOK 50 million". The yard lost 4 million per month the first two months and someone pulled out, while Kyllingstad purchased up to a 29% stake. In the summer of 2007 the shipyard was sold to Bergen group for NOK 720 million. The earnings for Kyllingstad were well over ten times the effort he had put in there over 3.5 years. his biggest winning, however, came three years ago, when he on the same weekend he won a full pot in soccer betting and a lottery-win of 2.7 million. surely enough, the soccer winnings were only NOK 10,000 and he had to share the lottery winnings with 11 buddies, but it was then his mother exclaimed: "...And to you of all people, ståle!" Hands on Kyllingstad admits that he is detail oriented and engaged. “I have a good memory and far above average emerged in the details. however I am also blessed with many talented deputy managers and the IKm system gives people the opportunity to rise to the occasion. If something were to happen to me, IKm would easily go on," he says. earlier this year he was elected as chairman of the federation of Norwegian Industries’ Oil & gas section. he is interested in industrial policies and shocked over the oil industry's inability to communicate. “Norwegian oil industry stands for an annual output of 14.8 million tonnes of CO2, about the same as the rest of Norwegian industry, while the total emission is about 50 million tonnes. yet the oil industry is considered to be the great sinner. One of my tasks is to help the industry to improve communication,

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Sole ownership simplifies the decision making process.

The wood grouse that got away was even bigger...

Photo: Sverre Chr. Jarild

particularly in industrial and regional policy. Few Norwegians know that the oil industry employs people from all municipalities in Norway, except for one. We must learn to shout to be heard," says Kyllingstad whose voice carries over several parishes. Investor Relations Today Ståle Kyllingstad commands sole ownership and is chairman of some 30 Norwegian companies, which last year sold for NOK 2.3 billion with an EBITDA (earnings before interest, tax, debt and amortisation) of close to 320 million. His IKM Invest AS has equity of over 440 million, and had to take a paper loss of 200 million in 2008, including the investment in the Norwegian oil company NORECO. But still Kyllingstad has a profit, and he is clearly comfortable with life. Recently IKM Invest invested 16% in Hansa Property, which has 280,000 square metres of property assets . A company IKM started in Spain in 2003 last year had a profit of 25 million on annual revenues of 100 million. Has he then committed no errors? Earlier this year one of his club leaders publicly responded to Kyllingstad's statements about price pressure from the oil companies.

Kyllingstad says the club leader since has regretted the outburst, which concerned five employees who all now have signed a new agreement. It's just a storm in a teacup, he comments. Clear ambitions His ambitions are clear. He will take the IKM group to a turnover of NOK 10 billion before he turns 60. It is just over ten years. On a personal note he characterizes himself as sober, driving the same car that he bought in 2005. He envisions many good moments in his stately house in Marbella, Spain, with his wife and their three children aged 15-19 and a large family, and hunting on the 30,000 square kilometres property in Upper Sirdal which he bought in 2008. He hunts birds and small mammals and some of his best hunting trophies stand behind glass along the office wall. Kyllingstad points to a huge wood grouse and says that he resents not having been able to shoot another wood grouse, which flew close by.

FActs about STÅLE KYLLINGSTAD Ståle Kyllingstad (49) started out washing rig toilets in 1979 and in 1989 he started IKM where he now is the sole owner of 30-40 companies with 2100 employees. With a total turnover of NOK 2.3 billion and an EBITDA of NOK 320 million, Kyllingstad’s net worth was last year estimated to be NOK 4 billion. Early 2009 he was elected as chairman of the Federation of Norwegian Industries’ Oil & Gas section.

“It was even bigger!” he exclaims.

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- wE ARE LIVING OFF OLD ACREAGE The exploration in the past decade provides a small contribution to future production, but Director general Bente Nyland at Norwegian Petroleum Directorate says there is no reason to give up. - We believe there will be major discoveries, in deep waters, in the Barents sea and maybe outside lofoten in the years to come, she says. Text by: Glenn Stangeland gs@offshore.no - We are still living off old acreage. No new areas have been opened for exploration since 1994. Actually the acreage is smaller than in 1994 because of the protection of certain areas in the Barents sea and outside lofoten. This can be one of the reasons for the reduction of reserve growth from

discoveries, Nyland says. The possibility of exploring and producing oil and gas in these waters will be decided by the Norwegian Parliament, stortinget, in 2010, but the Directorate stresses the importance of predictability within the industry. “Predictability has been important for the industry during the first 40 years. In the early days there were large discoveries, the production increased and the industry gradually got access to new areas. The government enabled the industry to develop within predictable terms. In recent years environmental issues has climbed higher on the agenda”, according to the Directorates report “Petroleum resources on the Norwegian Continental shelf”. - Both, please The size of the new discoveries has been significantly reduced, but at the same time the discovery success rate has increased. The exploration in the past decade provides a small contribution to future production. Therefore Nyland wants reserve growth to come from both discoveries and from fields already in production.

put into production quite fast and at a relatively low cost, Nyland says. During the next 20 years the Norwegian Petroleum Directorate expects a production of 4,9 billion standard cubic meter oil equivalents. In comparison there has been produced 5,1 billion sm3 from 1971 to 2008. A need for research and technology The prognosis shows a relatively constant level of production for the next ten years, but after 2020 it is expected that a larger share of the production will come from yet undiscovered resources. In light of this perspective, Nyland is disappointed with what the Directorate rates a lack of research funding to the industry. - In 2030 we calculate that 40 per cent of the production will come from yet undiscovered resources. This is critical to both future income and Norway’s reputation as an energy supplier to europe. New research and technology can provide us with great benefits, but we need cooperation between the industry and the government to test the new technology in the fields, she says.

- The shelf’s infrastructure is ageing, and it’s important that we empty the existing fields as best we can before they go out of production. These discoveries can also be

With it’s 600 million Sm3, Troll is still the field with the largest amount of oil in the ground, according to todays approved plans on the Norwegian continental shelf. Photo: Øyvind Hagen, StatoilHydro.

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Goodtech er en av Skandinavias største aktører innen effektiviseringsløsninger for industrien

Goodtech Solutions AS, er partner til Aspentech. Sammen er vi et sterkt miljø i leveranse og forvaltning av informasjonsløsninger til integrerte operasjoner. Kompetanse på prosesskunnskap og drift, kombinert med internasjonal markedsledende produkter og spisskompetanse, gjør oss til en ledende leverandør. Gjennom prosjekter hos StatoilHydro har vi integrert oss mot mer enn førti kontrollsystemer. Vi forvalter i dag fjorten driftsteder og har 24/7-beredskap som gir maksimal kvalitet og tilgjengelighet på data og systemer i virkelig sanntid. Glemmer du dette kan du glemme effekten av integrerte operasjoner også. Vil du ha applikasjoner for produksjon, prosess, vedlikehold eller miljø som understøtter dine arbeidsprosesser, leverer vi alt fra studium

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via prosjektleveranse til driftstøtte. Har du egne applikasjoner eller leverandører du vil integrere i løsningen? Ingen problem, vi tar ansvaret og sørger for at det blir en helhetlig løsning. Goodtech Solutions er Norges største uavhengige automasjonsleverandør. Dette gjør oss i stand til å påta oss alle typer integrasjonsoppgaver samt innføre standarder uavhengig kontrollsystemleverandører. Vi sier ikke det er enkelt, for andre enn oss... Goodtech Solutions, din totalleverandør gjennom hele anleggets levetid. Vi setter standarden!

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SEEKING PARTNERS wORLD wIDE even if CeO Pål engebretsen is satisfied with the achievements of Bergen group so far, he realizes that getting a partner or two will further empower the company’s strategic position in the years to come. “We are open for different forms of collaboration with qualified partners that represents strong industrial competence and capacity”, he says. Text and photo by: Arild Gilja ag@offshore.no

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More rig work at Hanøytangen contributed to a solid second quarter for the business area Offshore and Technology, Head of Bergen Group, Pål Engebretsen reports. Photo: Bergen Group. parent company. The reason for this is that the various disciplines will develop differently and will have different needs. We are interested in both financial resources and industrial expertise and capacity.”

two who are able to fill our needs, whatever region they come from.

He underlines the need for working at more detailed levels, though.

In the ship market Engebretsen identifies future challenges both on supply and demand side. On the supply side, there will be increased competition both from national and international players in regimes with favourable financing solutions.

“However, we should make special arrangements for each segment. Constructing partnership must be adapted to the particular disciplines." At the annual Pareto Oil & Gas conference in Oslo early September, CEO Pål Engebretsen presented several positive news from the maritime industrial company with headquarter in Bergen. In addition, he also named serious challenges Bergen Group wants to address. "We are satisfied with what we have achieved so far. But by looking at new trends in the markets we operate in, we think that structural changes can improve our future position even more. The existing ownership structure can in certain areas limit growth and optimal use of our resources. Therefore, we are willing to open up for international integration and partnerships, he says. Who will it be? "How far has the process of finding partners come?" "Not so far. We have reviewed our own structure and needs. We are first and foremost open for strategic partners in some of the subholding-companies, and not the

But Engebretsen will not elaborate further on the wanted requirements for the new partners. "Have you had any specific requests from larger investors?" "No, but we have discussions with several companies all the time. We have a good network worldwide. The chief of Bergen Group confirms that offshore and ship building are the two divisions that are most actual for new partners, as they definitely are the largest ones. “Probably shipbuilding will be the first one out, but offshore is also on the cards at an early stage”, he adds and stresses that these processes are complex and will take some time. Engebretsen will not specify where he expects to find the most interesting partners. - The most important thing is not where they come from, but that we find the right ones. We are a global player and want a partner or

Market challenges He tells there are several market reasons for getting partners.

“Good and inventive funding solutions are increasingly becoming a competitive factor”, he says and explains that low-cost countries still gain market shares and expand their vertical integration in the value chain. “On the demand side we see an increased demand for large specialized offshore vessels which have modern and costefficient tonnage.” The answer to this is clearly not more ship yard meters. “We have to increase capacity and knowledge within high-end technology more than ship yard capacity”. Despite lower resource estimates for the Barents Sea, Engebretsen still thinks the market is good and that further possibilities lie ahead in the Barents Sea. ”Helge Lund has just recently confirmed that the total investment for the Barents Sea will be at the same level next year, though a little lower for new investments. This implies that the demand for services within operations

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and maintenance will increase”. Fine results As Bergen group advertises for a new partner, she is herself rather attractive, as she reports good results for the second quarter of 2009. A record high order backlog of NOK 8.5 billion and further possible new orders worth 4.5 billion certainly brightens up the future. Operating revenue of NOK 2.452 million and eBITDA of NOK 165 million for the first half of 2009 give the impression that all is well also currently. In 2005 Bergen group (named Bergen yards until 2007) was founded on the remnants of the old traditional Bergen mekaniske

verksted (BmW). BmW was founded back in 1855 and delivered ships for the world market until the end of last century. The two last decades Bmv also moved into the new emerging market for offshore installations and developed competence within this field. Now the facilities at Bergen group hanøytangen, Bergen group rosenberg in stavanger and Bergen group Kimek in Northern Norway, also are important corner stones’ for the group’s increasing offshorerelated activities. Time will show if Bergen group succeeds in her strategy of embracing new partners, and who it will be.

Good colleagues in Ship Bridge: Workshop manager, Petter Krokli and HSE chief, Rune Nedreaas both have over thirty years experience in the industry.

OffshOre & eNergy 3/09

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Soon ready for dry dock: The Aquanos Enforcer will be a state-of-the-art Dive Support Vessel designed to operate under severe weather conditions, and with high maneuverability and station-keeping capabilities. The vessel is scheduled for delivery early 2010.

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20-09-09 22:47:59

Working in a cable world: Cables in every colors and sizes dominate the ship hull.

Offshore & Energy 3/09

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THE COMMANDOR he is the son of an Odda factory worker who became a manager at the factory and later obtained a top position in one of the world's largest oil companies. he is Commander of the royal st. Olavs Order and chairman and founder of a small independent Norwegian oil company with ambitions. meet lars Takla (65).

OffshOre & eNergy 3/09

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Text by: Helge Keilen hk@offshore.no

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20-09-09 22:48:07

"Takla tackled tough" was a recurrent title in the local newspaper Hardanger Folkeblad at the end of the 1950’s and early 1960’s. Debuting at 15, the small and robust fair haired football midfielder controlled more well-known names in both series and the cup. He stuck to football until it was no longer possible to combine with studies at the University of Technology and Science (NTNU) in Trondheim. To his own astonishment, he returned to Odda, where the factory had not hired a new engineer for more than 10 years. He was the third generation of Norzink, grandfather was the master painter and the father worked for him. Takla recalls that he on his way to school often was passed by Odda Smelteverk’s CEO Bruce in his blue Cadillac, with driver in uniform, and that the boys went stealing grapes in the Director's greenhouse. Many years later as a manager at Norzink he paid 265 kroner a month in rent for a villa owned by the company, where he lived with his wife Anne Grete and 2 sons until he left to start in the oil industry in 1977. Class struggle In the first half of 1970’s the class struggle was at its most violent. The zink-factory had 700 employees and the extreme leftists were very active. People came in bus loads from Oslo and Bergen to demonstrate and the production was stopped by strikes several times. "At 27 I was Manager of Norzink’s Aluminumfluorid plant, an entity that had raw materials to continue production while the rest of the company had to be shut down because of a strike. This got much attention, and it was one incident some of our employees had car tires cut in pieces. It was strong emotions on both sides in the Odda community, and many families became split on their view of the strike. It was first in 1977 I really become aware of the oil industry and what was going on in the North Sea. It happened after the blowout at the Ekofisk bravo platform, where the well killing operations of the famous “well killer” experts Red Adair and Boots Hansen got big headlines. Some months later, I saw in a newspaper ad that Phillips searched for senior engineers to the to coordinate start-up of new fields and platforms in the Ekofisk area .Being a chemical engineer by education with start-up experience of chemical plants strong operational experience and negotiating experience, and because Phillips experienced

union-problems, I presume that the latter was equally important for them. I joined Phillips 1. December 1977, with responsibility for the coordination of the start-up of the Tor-platform, that was delayed for nearly two years. My work colleagues were mostly Texans many of them with experience from refineries and not offshore platforms. In the early days of the oil industry, the attitude in Norway was that this would be an American dominated business where the Norwegians focused on the manufacturing and construction part of it. Still, in summer of 1978 40 young Norwegian Chartered Engineers (sivilingeniører) were employed by Phillips Petroleum, among them Rolf Wiborg and Kjell Jørgensen”, says Takla. Alexander Kielland In the next eight years Takla worked within several areas in Phillips Norway. The Norwegian authorities’ demand for so called Technology Agreements got him involved in Research and Development, and Phillips became the largest contributor to the establishment of Rogalandsforskning, an institution where he later spent eight years as Chairman. Cultural differences made the relationship between Phillips and the Norwegian authorities increasingly difficult, and Takla was set to mend this impression. An important issue during the early eighties was evaluation of enhanced recovery true water injection on Ekofisk. This caused high activity level and many meetings between the Norwegian Petroleum Directorate Ministry of Oil and Energy and the partners of the Ekofisk Group. Some of the licensing partners were concerned that water injection could destroy the entire reservoir. Finally the NPD with their resource director Farouk al-Kasim agreed with Phillips and their partners to commence the project even after a non conclusive pilot project. The authorities gave tax reliefs to reduce the risk, and the project has been a technological and economic success for both Norway and the partners. In 1980 something happened that would set its imprint on both the Norwegian oil society and Takla personally for a long time; the Alexander Kielland accident. “For some years lack of work for many drilling rigs, and the need for offshore accommodation during development of many new offshore fields made it common to convert drilling rigs to accommodation platforms. Early in the evening of March 23. 1980, we received notification that Alexander

Kielland had capsized during extremely bad weather and all aboard had ended up in the water. It was one of my duties in Phillips to coordinate rescue equipment from the UK and Denmark. When I some month later become Offshore Chief Engineer at Ekofisk with office next to the exercise room offshore, I was told that over 60 perished people was stored in that room before being sent onshore. “Fortunately improved technology and focus on safety has lowered the risk level and improved safety considerably for all people working offshore "says Takla. His injuries Takla was Ekofisk Offshore Operation Manager for four years from the mid eighties. Different helmet colors distinguished Phillips employees from contractor workers which, in its turn, could determine the priority for helicopter transportation. Those days it was a mix of nationalities and cultures offshore and we had the Scots who cursed in every

<< Many

things you assumed harmless at the time have shown to be the opposite. >> second word and the Spaniards who fished cod from the platform and dried the fish in the drying cabinet. The contractors had typically more accidents than Phillips' own people. Takla and his colleges gave this priority, and now most contractors have very strong safety performance. When the employee main safety delegates (hovedverneombud) for the first time was included in staff meetings, some of the Americans feared that it would be impossible to have an open discussion of issues in the staff meetings. Takla and his colleges pushed it through and in retrospect there were no regrets. He was offshore operations manager during the jacking up of the Ekofisk Complex platforms and installation of the protection wall around the tank. This was a fantastic technological achievement that got attention

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it is easy to be wise in hindsight, "says Takla.

all over the world. The most unnerving experience was a big fire in the ekofisk Tank. forty men helped in extinguishing the fire, three men on each fire hose. All received recognition and were awarded gold pens for the effort. All Norwegian gas to europe passed through the tank, and it was agreed with the Norwegian Authorities that the risk level had to be reduced dramatically. As technical director for exploration and production Takla lead the first phase of the development of the ekofisk 2 project, which is now the basis of ekofisk’s success during the last 10-15 years. It has since been revealed that many offshore employees were exposed to late injuries due to chemical use. Takla denies that he or others in the company's leadership had even suspicion that exposure to chemical used offshore could have long term effect on people’s health. “many things you assumed completely harmless at the time seem to later result in injuries or reduced health condition. All who attended public school in the 1950’s and 60’s, probably will remember how we played with mercury metal beads on the desk. A long time soccer team-mate from Odda worked all his life with filling petrol and diesel from his truck to the local gasoline stations, lost his memory and died a few years later. Increased knowledge of chemicals impact on humans may change our view on some chemicals that are common today as well. There are many things one would not have accepted if they were known at the time, and

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towards the top In time the Phillips’ us head quarters became interested in bringing Norwegians to lead the company. Knut Åm and rolf Wiborg had both been field director and technical director, and were shipped to us . In 1993 lars Takla was sent to Odessa,Texas to be the director of all of Phillips' activities in West Texas and New mexico. It was a totally new experience.In addition to the international oil companies,it was 250 independent oil companies in West- Texas, from the large ones with more than thousand employees to a ranch owner with three sons. As the only scandinavian family in Odessa, we experienced the warm hospitality of the Texans, taken on turkey and doves hunting and served on a numbers of boards including the advisory board of the salvation Army in Odessa. golf was also an important recreational activity by the time, and I worked my handicap down to 14.3. Once a month I met executives of other major oil companies in the Petroleum club in midland, had lunch and discussed common problems. There I met for the first time Kathy Pepper, who later headed exxonmobil in Norway”, says Takla who admits that he several times thought of quitting and start with one of the smaller and independent oil companies. Commander lars Takla became CeO for Phillips scandinavia in 1997 as the second Norwegian in that position. The first Norwegian mD of Phillips Petroleum was Knut Åm. shortly after his promotion he got some serious back problems, and in three years he worked standing behind a desk that could be moved up or down. In the same period he sometime had to fly over the Atlantic a couple of times a month, and remember this with mixed feelings. In later years the old football player has, touch wood, never had any back problems. All well and properly functioning, he has at times been taking on an excessive amount of tasks, among them participation in the main board of the Norwegian research Council and chairman of the same institution’s Innovation Board. Next to the full job in Phillips, later Conoco Phillips, which demobilized approx. 500 employees in his years as CeO, he became Chairman of the Board of the ONs foundation and rogaland research. All this were important factors for him being appointed Oil man of the year in 2002 and Commander of the royal st. Olav's order in

2005, as the only oil person after hydro's egil myklebust. the chairman lars Takla left Conoco Phillips in January 2005, after eight years at the top. since, the tradition with Norwegian top executives has been followed, with Trond-erik Johansen and current CeO steinar våge. As a retiree Takla was approached by Ole melberg, who explored the possibilities of starting an oil company based in stavanger. revus had already been started and the government wanted to award the licenses to newcomers to increase exploration activity and the diversity on the shelf. The answer was NOreCO (The Norwegian energy Company) with former BP Norway's top scott Kerr as CeO and Takla as a executive Chairman. his own company, Takla energy As, was at one time largest owner and still has a percentage of the company. NOreCO with 77 employees has ownership in more than 50 licenses in the North sea and was the second largest recipient with five blocks in 20. Concession round. The company has production in Norway and Denmark, and should produce 15,000 BOD by the end of 2009. he is still chairman of the ONs foundation, and board member of upstream, and was recently appointed board member of Aibel. lars Takla has a villa in marbella, where he spends most of the summer and part of the winter, playing golf and nurturing his extended family. he is still married to his youth love Anne grete, who also grew up in Odda, and has 3 grown up sons and 3 grandchildren.

FACtS ABout lARS tAklA lars Takla (64) became aware of the oil business when he was head of the fluorid factory in his home town Odda. he joined Phillips Petroleum in stavanger January 1. 1977 and twenty years later he became CeO for Phillips scandinavia, a post he held until he left in November 2004. he is now chairman of the stavanger based oil company NOreCO.

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20-09-09 22:48:08

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RECOVERy SIGNS SEEN FOR UK signs of a recovery in the fortunes of the uK North sea have started to appear in the third quarter this year with news of several major projects taking significant steps forward. Text by: John Bradbury jpbradbury@btinternet.com While Norway has often been the blooming part of the North sea, with a stream of ongoing large developments, such as goliat, gudrun and skarv with Idun to name just four, the uK sector has lagged behind in recent years. But there is a new resurgence in the uK North sea. After the downturn in the oil price towards the end of last year which followed a high of us $147/bbl in July 2008, the oil price has, for now at least, stabilised at around us $70/bbl, and lent more confidence to project planners who have started to talk about big developments again. so what has the uK got to look forward to in the coming years? first off is Clair ridge, which is now in the design stage with a recent contract awarded to KCA Deutag by operator BP for the drilling facilities for this new platform-based development extending the Clair field which has been estimated to contain more than 4 Bn bbl of oil. Clair ridge is northeast of the main Core and graben field areas which contain an estimated 250 m bbl of oil and which formed the first phase of the Clair project which came onstream in february 2005 with a single platform KCA, part of the Aberdeen-based Abbott group, is contracted through its subsidiary rig Design services to design the drilling facilities for Clair ridge, a project with which BP aims to tap the northern end of the field . Work actually commenced in June in london with 20 rDs assigned to the project already, and the figure could be doubled later, subject to project sanction, KCA has indicated. up to 28 wells will be required for a new Clair ridge drilling facility, KCA says, with a subsea template due to be installed as part of the project. some of those wells are to be pre-drilled and subsequently tied back to the

OffshOre & eNergy 3/09

Drilling with the Stena Carron drillship in the Rosebank field area west of the UK Shetland Islands has helped Chevron to appraise the area as it moves towards development. new platform, KCA has said, and remaining wells will be drilled from the new platform which will have a minimal footprint to restrict its environmental impact.

and design for a number of fixed platform solutions being considered by BP and its project partners, Conoco, Chevron, shell and hess.

“safety will be paramount in the design process to ensure the resulting facilities minimise risk to personnel,” KCA declared when it won the BP deal, adding: “substantial emphasis is being made to design Clair ridge to minimise the impact on the natural environment, This will start during the earliest stages of design right through to the installation and commissioning of the facilities,” the contractor said.

Clair was discovered in 1977 and previous indications by BP have put total field reserves at “in excess of 4 billion barrels of oil,” in a highly compartmentalised reservoir.

BP first signalled its intentions to develop Clair ridge in November last year with the award of a conceptual engineering study to Amec, under a pre-existing global offshore engineering and project management agreement with BP. Amec's Clair ridge work is for conceptual and front-end engineering

mid-year Norway's sevan marine was selected to carry out a concept feasibility for the rosebank development, based on using one of its round-hulled sevan stabilised Platforms, for the project.

still in the West of shetlands region, Chevron's rosebank project is moving along with recent completion of a further appraisal well and sidetrack, 213/27-4, drilled with the stena Carron drillship operating in a water depth of 1,120 m (3,675 ft).

In may engineering group

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WorleyParsonsIntecsea won a contract from Chevron upstream europe to provide facilities engineering services which will help the operator narrow options down to a single solution for rosebank. “The contractor will assist with the evaluation of field development options, with the work scheduled to take approximately six months,” Chevron stated at the time. stuart Klein Chevron's rosebank project manager stated then: “The rosebank team has done a great deal of work already to define and evaluate a range of possible development options. Intecsea is tasked with further refining this work to help us identify a preferred alternative.” Then in August sevan marine collected a second contract for the project, focusing on using a sevan marine platform at rosebank. hull sizing and configuration is part of the scope, along with topsides engineering, mooring design, plus motion stability and analysis. marine operations at rosebank are also being studied, with risk identification work underway. Cost and delivery estimates for a sevan marine hull are to be provided too. Out at the field location west of the shetland Islands, Chevron has containued appraisal work on rosebank, which was first discovered back in 2004. The latest 213/.27-4 rosebank well was spudded by the stena Carron drillship on 22 June and reached a total depth of 3,473 m (11,392 ft) a month later and a sidetrack was kicked off on 31 July. That sidetrack has now also reached Total Depth at 4,477 m (14,687 ft) and the stena Carron, which is operating in a water depth of1,120 m (3,675 ft), is currently logging the well. Once complete on rosebank, the drillship is due to go to Omv for the Tornado exploration well, also in the West of shetlands region. earlier the stena Carron drilled an appraisal well on behalf of hess on the Cambo prospect, designated 204/10a-3, which kicked off on 20 may. “The 204/10-3 well will be the second of a three well exploration and appraisal program within the greater rosebank Area using the stena Carron,” the operator has indicated. Chevron and hess each have 32.5% equity in

OffshOre & eNergy 3/09

the Cambo well partnered by DONg with 20% and Omv with 10%.

previously drilled and appraised by Nexen in 2007, plus the hobby and Pink discoveries.

exploration drilling in the uK Atlantic margin received a further boost in mid september with news that the DONg e&P operated glenlivet well, 214/30a- 2 - which spudded on 22 August - had struck gas.

“The golden eagle area is shaping up to be a significant development for Nexen and after Buzzard, it is the largest oil find in the uK North sea in the last decade,” declared Nexen president and chief executive martin romanow.

glenlivet was the first well drilled by DONg energy in the uK west of shetlands region, and was drilled by the Transocean rather semi-submersible which encountered a 61 m (201 ft) payzone in a Palaeocene reservoir. A sidetrack appraisal well on glenlivet was immediately being considered, after the hole reached a total depth of 2,333 metres (7,654 ft) on 11 september, with the rig operating in a water depth of 435 metres (1,430 ft). “The well encountered the prognosed gas pay in Paleocene sandstone. An extensive coring, logging and sampling programme have been carried out and confirmed excellent reservoir and saturation parameters (61 meters net pay gas section),” DONg energy reported, “glenlivet is faroe’s first Atlantic margin discovery and confirms the presence of a significant accumulation of hydrocarbons in a high quality reservoir,” declared graham stewart, chief executive of faroe Petroleum, which has a 10% stake in the glenlivet well. Interestingly glenlivet is just 15 km (9.3 miles) from the laggan field, which is already under development by Total, and faroe suggested glenlivet could be tied into the planned new pipeline infrastructure planned by Total to take laggan gas back to a new terminal at sullom voe in the shetland Islands. four more wells are due to be drilled in the uK and faroes Atlantic margin region this year: Another is targeting the Tornado oil prospect, close to BP's schiehallion field, which is to be operated by Omv and was due to kick off at the end of september. Then faroe Petroleum will be participating in drilling the Anne marie oil prospect off the faroe Islands operated by eni, then the Cardhu oil prospect operated by BP, and finally the lagavulin oil prospect, operated by Chevron, also in the uK Atlantic margin region. Back in the Central North sea, Nexen has recently signalled that it is to proceed with development of the golden eagle area, near its major Buzzard field. golden eagle will encompass a discovery by the same name

Including the original golden eagle, hobby and Pink discoveries in the same Central North sea area, Nexen says together the finds could become a project to almost equal the size of its four-platform Buzzard development. Nexen's statements are based on data from three exploration wells, nine appraisals and three drill stem tests carried out on the golden eagle area, plus injectivity tests, and “extensive core data,” which have led the company to estimate that the discoveries contain between 150 and 275 m boe of gross recoverable contingent resources. Nexen indicated in its second quarter results that golden eagle reserves are sufficient to support a new installation. “We expect development of the area will be economic at approximately us$40/bbl and should support standalone facilities with project sanction targeted for 2010,” the Canadian-based company said then. An initial golden eagle well in 2007 encountered net pay of 45.73 m (150 ft) and a later northerly sidetrack which hit a further 18.29 m (60 ft) of net pay, which together demonstrated potential to produce 5,000 b/d of oil. Pink, drilled last year further south between the main Buzzard complex and golden eagle, hit another 17.37 m (57 ft) net pay of high quality reservoir with light oil from upper Jurassic Burn sands. This well was sidetracked west and found another 40 m (134 ft) of net oil pay. “In addition, we have recently completed an appraisal well here and the results are being assessed,” Nexen added in its second results. hobby was discovered in January this year, and tested at 5,550 b/d of 37 degree API oil on a restricted choke. Appraisal drilling on hobby is planned by Nexen for second half of this year.

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THE LATEST NEwS from offshore247.com

Text by: John Bradbury jpbradbury@btinternet.com

kINSAlE StAkE Ireland's Providence resources opted to take a 40% stake in the Kinsale head gas field off southern Ireland in the Celtic sea. Providence agreed the option with Kinsale operator Petronas back in June and has since decided to exercise the option through its wholly-owned subsidiary eirgas limited – a special purpose company established by Providence to invest in Irish offshore gas

fields and gas storage opportunities.

stake in the nearby seven heads gas field.

Petronas acquired Kinsale in a us $180 million deal with previous owner marathon Oil earlier in April this year.

Closure of the asset deal is expected inn the first quarter next year, and Providence chairman and chief executive Tony O'reilly says it gives his company the opportunity to double daily production to over 4,000 boe/d, and provides exposure to gas storage and trading businesses.

The deal covers the Kinsale head, plus south West Kinsale and the Ballycotton gas field, and Providence's eirgas has also decided to exercise an option to take an additional 40%

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Terotech AS Petro- & marine Project Support World wide Project Assistance Since 1993 I løpet av våre 16 år i offshore miljøet har vi deltatt i prosjekter i 9 forskjellige land med flere av våre innleide og faste konsulenter/ ingeniører. Ingeniørene i vårt konsulent Team har solid bakgrunn, og med bred erfaring innen både maritime- og olje & gass prosjekter fra design, byggeoppfølging, modifiseringer, commissioning mm. Innenfor skip, rigg, offshore installasjoner og onshore petroleumsanlegg.

Senior Ingeniører til Olje/Gass og maritime prosjekter. Piping, Instrument, mechanical, Structure, PDMS designers, Site supervisiors & Commissioning Engineers/ Leaders. (Inn- utland) Vi har økende forespørsel fra våre kunder inn/ utland og trenger snarest flere erfarne MSc, BSc, og Maritime Ingeniører innen alle oljerelaterte og maritime disipliner ute hos våre kunder. Også erfarent drilling personell på boresjef og boreleder nivå. Vi tilbyr: - Spennende oppgaver. - Meget konkurransedyktige betingelser for det rette personellet. Send korrekt oppdatert CV samt tidspunkt for tilgjengelighet til: post@terotech.as Web Site: www.terotech.as

GS-Hydro Norge AS

ID nr. 26141

www.gshydro.no

OffshOre & eNergy 3/09

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CENtRICA wINS vENtuRE BAttlE Another North sea merger looked inevitable with uK player venture Production accepting that the battle to remain an independent company was over and directors urged remaining loyal shareholders to accept Centrica's hostile takeover bid after the British-based utility acquired more than 50% of venture's shares, allowing it to declare its £1.3 Bn (us2.3 Bn) offer unconditional. Centrica's offer to take over uK independent venture Production at 845p per venture share – valuing the company at £1.3 Bn (us2.3 Bn) – had become mandatory towards the end of August as Centrica acquired an overwhelming majority after acquiring 62.695 million venture shares, or 41.9% of the company previously.

RoCkHoPPER RollS wItH NEw FAlklANdS PARtNER One of the uK companies involved in exploration off the falklands Islands reached a deal to farm out acreage near to where Desire Petroleum recently signed for a rig to drill at least four new wells. rockhopper exploration agreed a deal underpinned by a signed letter of intent. - with an un-named partner which is to farm in to some of rockhopper's existing North falkland acreage.

subject to various approvals including that of the falklands Islands government, the new partner will farm-in to rockhopper's North falklands acreage on the basis of a contribution to the costs of drilling one well on rockhopper's licence area and paying part of previous exploration costs. Discussions were being held to firm the agreement up into a joint venture.

In the North sea, venture's assets have been built up in several core areas, the oil fields encompassing the greater Kittiwake Area (gKA), and the Trees area, both in the uK Central North sea, and gas fields in the greater markham Area in the southern North sea, and in the Northern Netherlands Area. In total venture held interests in 21 producing fields, and 27 discoveries, many of which are either under appraisal or development, across the uK and Dutch North sea. In the first half of 2009, venture production averaged 52.5 m boe/d and its recoverable reserves in July were put at 269 m boe, in an independent report. venture's assets include the Chestnut field, discovered in 1986 and dormant for 20 years. Then venture became operator of the field in 2003 and brought it onstream in september 2008 using a sevan marine ssP 300 roundhulled floating production platform – the first use of this type of platform technology in the uK North sea - which was repeated later on the shelley field development.

SuBSEA 7 BAGS $250m CoNtRACt FRom PEtRoBRAS Oslo-listed subsea 7 won a long-term contract from Brazilian giant Petrobras for its pipelay vessel Normand seven and the contract - valued in excess of us $250m - is for the exclusive use of the vessel for four years, commencing in the third quarter of 2009. Normand seven is a pipelay vessel with an advanced flexible pipelay system capable of operating in water depths of up to 2,000m (6,560 ft).

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Providing offshore containers & baskets around the world 5 Dry goods containers 5 Mini containers 5 Half height containers 5 Cargo baskets 5 Open top containers 5 Closed mud skips 5 Tubular transportation frames

Built to DNV 2.7-1 / EN12079 Standard Make us your first choice. Contact Eirik Ellingsen:

Tel: +47 51 64 79 00

Ferguson Norge AS Bygg 11 c/o Norsea Base 4056 Tananger Norway Email: ferguson@fergusonnorge.no

Norway: www.fergusonnorge.no UK: www.fergusonseacabs.com Australia: www.fergusonseacabs.com.au

BS EN ISO 9001 BS EN ISO 14001 OHSAS 18001

SPE Norway presents:

The 5th Petroleum Technology Conference Bergen, 14th - 15th October 2009

“How technology can reduce cost and improve efficiency” Programme October 14th 09:00-09:10 Opening Jan Roar Drechsler, SPE Stavanger Chairman and chairman of the programme Committee

09:40-10:10

12:10-13:10 LUNCH

Challenges in drilling and well operations Geir Slora, StatoilHydro, Senior Vice president, Drilling

13:10-13:40

09:10-09:40

10:10-10:40

Keynote-Technology, cost and bottom line Roy Ruså, technical director Petoro

Part of the problem, - and the solution Ketil Lenning, managing director, Odfjell Drilling

Drilling and Well Operations Wells and well interventions are critical for realizing the potential reserve volumes on the Norwegian Continental Shelf. Approximately 50 mrd NOK is annually invested in new wells and well operations. Increasingly lower oil prices challenge the financial attractiveness of smaller drilling prospects, forcing greater focus on cost efficiency in design and operations. This session will address the business opportunities and demonstrate practical examples and field cases where technology has been instrumental in reducing cost and improving efficiency, or could be.

10:40-11:10 Break 11:10-11:40 Commercial and efficiency gains through integrated operations Morten Dethloff, Account Leader Business Development, Halliburton10:40-11:10 Break 11:10-11:40 Commercial and efficiency gains through integrated operations Morten Dethloff, Account Leader Business Development, Halliburton

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11:40-12:10 More value from limited resources Olivier le Puch, General Manager North Sea, Schlumberger

Challenging the traditional drilling rig concept Jarle Liland, business development manager, Seawell 13:40-14:10 The potential in light well intervention Hans Lindland, Position Technology Manager, FMC Technologies 14:10-14:40 Break 14:40-15:10 Quest for new solutions Pål Helsing, Vice President Technology, AkerSolutions 15:10-16:00 Panel debate Moderator: Helge Keilen Editor-inChief, Offshore Media Group 19:00 All participants are invited to OktoberFest in the Haukeland Hall

20-09-09 22:48:26

Scandic Bergen City 14th - 15th October 2009

Programme October 15th Information handling – a whirlpool of opportunities 09:00- 09:30 The data flow - Gift and curse Thore Langeland, Manager Integrated Operations, OLF

Leif Arne Brandsæter, Manager O&G Norway, SAS institute

Tim Croucher, Manager Operational excellence, ConocoPhillips

10:30- 11:00 Break

11:50- 12:15

Technology, cost reductions and efficiency improvements

09:30- 10:00 New opportunities in logistics managment Bjørnar Aas, PhD in Logistics, Associate Professor, Molde University College

11:00- 11:25 ExxonMobil – a supermajors view on technology, cost reductions and efficiency improvements Jan Åge Hansen, Norway Joint Interest Manager, ExxonMobil Production / Esso Norge AS

10:00- 10:30 Data mining – from theory to business - case histories

11:25- 11:50 ConocoPhillips independets

–

large view

StatoilHydro - the view of the dominating operator on the Norwegian Continental Shelf

Øystein Håland, Senior Vice President, Technology, StatoilHydro 12:15- 12:45 Panel discussion Moderator: Helge Keilen, Editor-inChief, Offshore Media Group 12:45-13:45 Lunch and visiting the OTD exhibition in Arenum

All delegates are invited to the famous OktoberFest

Information and registration: www.offshoredays.com/ptc

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OffshOre & eNergy 3/09

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Joint Qualification System

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Supporting the subsea & drilling industry

Mongstad - Ă&#x2026;gotnes - Bergen OffshOre & eNergy 3/09 www.psw.no

20-09-09 22:48:33

PHoto doCumENt

lANdmARk yEAR FoR oE IN 09 In years to come Offshore europe 2009 might be seen as a landmark conference because of its theme “energy at a Crossroads – making Choices ” which reflected a move into a different oil and gas era with dwindling North sea supplies and concern over how to extract remaining resources at the top of the industry's agenda. Text by: John Bradbury - jb@offshore.no Photos by: Jan Erik Kronstad - jek@offshore.no

This year's event feature a host of international players including Connie hedegaard, Denmark’s minister of Climate and energy and the conference chairman was maersk Oil Chief executive Thomas Tune Andersen,

“The Wednesday figure is already 20% higher than the same in in 2007,” said elaine hulse, events manager for reed exhibitions, which with the society for Petroleum engineers hosted Oe 09 at the Aberdeen exhibition and Conference Centre.

Talks were given by Total's chief executive Christophe de margerie on the future of the North sea, and by guilherme estrella, exploration and production director at Petrobras, and by Andrew gould, chief executive of schlumberger, among many other industry big-hitters.

This year's Oe was also the largest in the 36-year history of the event, with 22,620 square metres of exhibition space taken.

Before the show kicked off Andersen was suggesting that this year's conference would be the one where structural changes taking place in the industry would be noted, reflecting changing international business conditions for the oil and gas exploration and production industry. “There is a whole new dynamic around access to resources in far away places, innovation and new partnerships and what is happening to the climate,” Andersen said. “And we cannot turn a blind eye to the fact that there is a very serious financial and economic climate out there,” he warned. record breaking attendances were a feature of this year's show too which by day two had seen another 12,000 people entering the exhibition arena taking the cumulative total to 23,000 by the second day. By day three of the show, hosts were talking of more than 30,000 attendees.

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SHIPPING

HEADING FOR ROUGH wATERS As the manager of the world's fifth largest supply ship company, Karl-Johan Bakken, has identified some important challenges ahead. he fears that the world supply market is heading for lower rates and lower ship utilisation. Is it possible to steer clear of the market decline? Photo: Farstad Shipping

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Text by: Arild Gilja ag@offshore.no

www.offshore247.com

The scenery looks bright and promising today. However, there will probably be no use of sunglasses for a while. As the manager of the world's fifth largest supply ship company, Karl-Johan Bakken, has identified some important challenges ahead. He fears that the world supply market is heading for lower rates and lower ship utilisation. However, so far this year, the company has received lots of good news. In March, the advanced new-build, Far Samson was delivered from STX Europe at Langsten. The vessel immediately commenced a five-year contract for Saipem UK. The vessel is designed and equipped by Rolls-Royce. The designer obviously has to be given some credit for the vessel’s early recognition. In June, the vessel received no more than two awards in less than a week! First, Far Samson won the “Ship of the Year 2009 award” and then the ship also collected the environmental award in memory of Thor Heyerdahl at the opening of annual ship

event, Nor-Shipping. Farstad Shipping received two more supply vessels from the yards in the first half of 2009. “Far Serenade” was delivered from STX Norway at Brevik late March, and then commenced on a five-year contract for StatoilHydro. “Far Scorpion” arrived from the docks in the middle of June, also from STX Langsten. Far Scorpion will focus at the North Sea spot market. Farstad Shipping was able to present a series of good news during spring and summer too. New global contracts in Australian and Brazilian waters continue to keep the company's large fleet occupied. World power record Far Samson is no slacker. The vessel has demonstrated a continuous bollard pull of 423 tonnes, making it an unofficial world record. The vessel is so-called

multifunctional and is capable of carrying out heavy ploughing operations for pipes and cables on the seabed, as well as subsea installations at very deep waters. Still nice results Despite a turbulent period with credit crunch and escalating pessimism at the world scene, the company was able to beat last year's results, both in the first half and in the second quarter of 2009. And the company had something to live up to, too. The company achieved the highest operating revenues of 3,019 million Norwegian kroner in the company's history in 2008. And so far this year, all seems good as well. The operating income in the first half of 2009 was 1,581 million Norwegian kroner, an improvement from last year's 1,287 million. The results also increased significantly. The results for the first half ended at 665 million kroner, compared to 398 million in the first

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half of 2008. The company achieved a result for the second quarter of 366.8 million Norwegian kroner compared to 255.5 million the same quarter last year. Clouds in the horizon However, despite moving in calm waters today, Farstad is worried about the market conditions ahead. The oil companies’ focus on reducing costs has resulted in a reduced activity level and less subcontractor jobs. In addition, a difficult credit market gives negative energy and increases the numbers of postponed and cancelled projects. The market for supply vessels is also influenced by this development. In addition, more and more new-builds are entering the market. We asked the president in Farstad Shipping, Karl-Johan Bakken how he would face these challenges. “Your question is interesting and timely, but as a manager of a company listed on the Oslo Stock Exchange, I am not able to answer questions regarding future dispositions that we have not already

announced in the market.” Bakken was also reluctant to reveal which markets the company expects most from in the future. The company's freight income in 2008 was earned in the following markets: 16 percent in Norway, 14 percent in the UK, 45 per cent in the Far East and Australia, 19 percent in Brazil and finally 6 percent in West Africa and Mexico. Due to the recent contracts gained in Brazil and the coming huge investments at the deepwater fields offshore, one could speculate whether Farstad expects and hopes for an increased workload in the South-American waters. World's fifth largest Karl-Johan Bakken says that Farstad Shipping is the fifth largest supply company in the world, when counting the number of PSV, AHTS and CSV. Bakken has an impressive number of 54 supply vessels under his command.

FActs about farstad shipping The company's head quarter is located in Aalesund on the North West coast of Norway. In addition the company has offices in Aberdeen in Scotland, Melbourne in Australia, Singapore and in Macaé in Brazil. Through a joint venture Farstad also has a presence in Angola. The total number of shore personnel is 150, and the number of sailors is approximately 1,450. Farstad Shipping has a fleet of 54 vessels and currently three vessels under construction. Farstad Shipping has been listed on the Oslo Stock Exchange since 1988. The number of outstanding shares is 39 million out of which approximately 46 percent is owned by the Farstad family.

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WÄRTSILÄ® is a registered trademark. Photo: Magne Langåker

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     

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  

 

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BM_Pr

FRENDE FORSIKRING

NORNE SECURITIES

KYTE NÆRINGSMEGLING

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