The Norwegian Continental Shelf 2013 by Offshore.no AS

The Norwegian

Continental Shelf

2013

Forecast

Since 1982 Offshore Media Group has provided the Norwegian oil and gas community with information about the different aspects of the activity on the Norwegian Continental Shelf. In our 30th year we are now launching the OffshoreBook. As editor through all these years I have experienced many profound changes. Most important is that the Norwegian oil industry has grown from humble beginnings to being utterly professional and internationally oriented. Hardly a week passes by without news of major international contracts. I have seen companies come and go, some just did not make it, and others fell short in the occasional dump in oil prices, which through the years has threatened to paralyse the industry. A few entrepreneurs have made it really, really big; others are struggling by or have sold out at a fair price to major contractors. The idea of the OffshoreBook has been under development for some time. Offshore Media Group has the specialised knowledge, the insight and the historical background to supply our readers with relevant articles. Our goal is to cover the present trends, future scenarios and the different actors in the Norwegian oil and gas business. Beside our own editorial staff of experienced journalists our regular commentators like Hans Henrik Ramm, BjĂ¸rn Vidar LerĂ¸en and Jarand Rystad have aided us. Through their editorial contributions we aim to demonstrate that the Norwegian oil industry is far more diversified than merely platforms and drilling rigs. Our aim is to provide an overview of present industry trends and to highlight the important actors in the future of the Norwegian oil scene. The OffshoreBook has a two-year perspective. The Book is designed to engage management, employees, politicians, students and international contractors. We will ensure a national and international distribution. The 2012 edition will reflect an almost all-time optimism. Seldom has the future looked brighter. Even then, securing immediate success is not automatic. It is so easy to overestimate your own potential and underestimate the challenges which lie ahead. One obvious challenge is keeping your key personnel, and another is attracting newcomers to your company. More than anything, the ability to carry through contract work in a profitable manner will be the main challenge over the next few years. Other that that, and barring a world wide crisis that sends the oil price spiralling down, even a veteran oil reporter cannot see any reason why the Norwegian oil industry will not prosper in the years to come. I hope that you will enjoy and make use of the OffshoreBook, and that it will inspire you in your future work.

Helge Keilen Editor-in-Chief Offshore Media Group

Forecast

Life begins at 40 for oil fields

By Bjørn Vidar Lerøen, energy writer and commentator

The great comfort as we grow older is the saying that life begins at 40. This is also the case for the mature part of the Norwegian continental shelf. A number of new oil and gas discoveries confirm what some already believe: The oldest Norwegian petroleum province is not that mature as anticipated. Discoveries like Johan Sverdrup and King Lear are a powerful and wonderful correction to conventional wisdom. Block 2/4, where the Ekofisk field was discovered in 1969, and production started in 1971, is the prime example. After more than 20 exploration wells drilled in the block, Statoil recently made a discovery of gas and condensate in the acreage that many years ago was handed back to Norwegian authorities. It was by the way in well number 14 in block 2/4 Saga Petroleum had a blow out in the beginning of the 1990s. Four years ago the former CEO of BP, Lord Browne, said: “Every time we believe the game of exploration is over, we find something, unexpected.” The tales of the unexpected are told in the Norwegian petroleum industry these days. When sunset is expected on the old oil and gas fields, the sun start to rise on new oil and gas discoveries in the neighborhood, and they add a new chapter to the North Sea story: Life begins at 40. Ekofisk itself, discovered in the second well in block 2/4 is still alive after all these years, and is now more than 40 years old, and ConocoPhillips is preparing for operations in at least 40 new years to come. The base case was a recovery rate of 16 to 19 per cent and a lifetime of 15 to 20 years. I have had the privilege to report from the production start at Ekofisk in 1971 and to address the ConocoPhillips board in 2011, talking about the past and the coming 40 years ago. Today we are talking about a recovery rate close on 50 per cent, and in addition, new discoveries are being made within the block 2/4 acreage. It is no less than impressive. It is like a never-ending story. In fact oil and gas reservoirs will be emptied, but it will take way longer time than anticipated.

Forecast

The proposal from Gassco to have a 1,000 kilometer gas pipeline laid from Northern Norway to Mid Norway, to be connected to the southbound pipelines, has a smell of future. Converting the gas from Snøhvit was the first step. A second train may be built at the terminal at Melkøya, but in the long run we need a pipeline if the region proves to hold a lot more gas.

IOR is the biggest field Norwegian oil decline However, tNorwegian oil production has been in decline for the last ten years. Oil production is some 40 per cent lower than at the peak. New discoveries do not necessarily bring production back to historic highs, but they do contribute to extending Norwegian oil production on a fairly high level. To those who are looking on the Norwegian oil production decline as a negative story, one should think about the positive side: Oil production from the Norwegian continental shelf became bigger than any of us could dream about. The new discoveries are of course very stimulating to the industry. Lack of drilling rig capacity has however constrained exploration on the Norwegian continental shelf for years. This is a concern to the Norwegian Petroleum Directorate (NPD). To increase the rate of recovery from mature fields requires many new wells to be drilled. Another concern is the high cost level in Norway. The price of contracting a drilling rig to the Norwegian continental shelf is much higher than to the UK. The cost problems have been exmained by a group of experts appointed by the Minister of Oil and Energy, Mr. Ola Borten Moe. The union representative in the group, Mr. Frode Alfheim, decided to leave the group before the final report was handed over to the Minister, most likely due to his different view on action that has to be taken to bridge the gap between Norway and UK in offshore costs, and maybe,regulations. This summer three unions halted operations on three Norwegian offshore fields by a strike that lasted for 16 days, where after the operating companies replied by announcing a lock out for all union members. Shortly after the Minister of Labour, Mrs. Hanne Bjurstrom intervened by imposing compulsory arbitration to achieve a pay settlement in the ongoing dispute. Security of supply and consequences for oil and gas buyers is the arguments for governmental intervention. It is important for Norway to appear as a reliable energy supplier.

Gas exports still grow Norwegian gas exports have grown for many years, and still they grow. It is however necessary to identify new gas sources to maintain and sustain the high volumes. The hope for the future lies in the north. The settlement between Norway and Russia on the bordering line in the Barents Sea is a giant leap forward to stimulate exploration in a part of the world where huge reserves of oil and gas may be contained.

According to Statoil – the dominant player at the Norwegian continental shelf – the IOR potential is the biggest remaining Norwegian oil field. No other offshore oil producing countries have succeeded better than Norway in optimising output from reservoirs. “IOR is the biggest remaining oil field in Norway. We are talking in the range of 7,5 billion barrels,” says Statoil vice president Siri Espedal Kindem. She recently moved from technology, projects and drilling to take the lead position for renewables in the company. The Norwegian continental shelf will for many years remain as one of the biggest and most important offshore markets in the world. One of the most crucial issues will be to drill a sufficient number of wells. A balance between the mature fields and new exploration must be secured. When Statoil CEO Mr. Helge Lund took office in August 2004, one of his first statements was the ambition and vision to re-vitalise the Norwegian continental shelf. He has succeeded both in the southern and northern part of the Norwegian shelf. Together with the rest of the industry he will be challenged by high cost and a lack of capacity. It takes a lot of energy to find, produce and deliver energy.

Forecast

What political changes lie ahead?

By Hans Henrik Ramm

When Parliament processed the Parliament Report on Petroleum, it also unanimously approved an ambitious target path for future production. This will require improvements in framework conditions. What can we expect? In my opinion, the main necessary improvements for E&P fall under five keywords: Access to acreage, diversity, petroleum tax, R&D, and infrastructure.

Which government? All of the above will depend on creativity as well as political will. Some of the main issues are likely to depend on which government is elected after next year’s National Election. Since both small non-socialist parties now have committed to a non-socialist government, there are in reality only two alternatives: Continued red-green government or a non-socialist coalition. Under different circumstances, a clean Labour government could have been a possibility, but this now seems highly unlikely.

Access to acreage The current government plans for opening decisions for the southern part of the new delineation area and the shelf around Jan Mayen in 2013. I think this will happen regardless of government. For the Lofoten/Vesterålen (LoVe) area and some adjacent areas, the Ministry of Petroleum and Energy is currently “collecting knowledge” that is assumed to facilitate a possible formal impact study, if the next Government should want it. This was the internal compromise in the red-green government, after several other compromises that each gave the impression of being short delays only. Under a continued red-green government, we risk new consecutive delays. However, the Conservatives and the Progress Party are firmly committed to have the Impact Study as soon as possible, and Conservative Leader Erna Solberg has stated that she won’t accept a minority veto from the smaller parties. I therefore think there will be an opening decision under a non-socialist government, very likely in 2014. Opening of acreage in the Barents Sea North is further ahead, but the current government has taken some interesting steps by awarding licenses far north in the open area, and now by offering licenses in the 22nd Round inside a narrow part of the so-called Svalbard Box that already is open. It is also carrying out active diplomacy to promote Norway as a steward for the Arctic, implicitly showing that parties to the Svalbard Treaty should forget about their reservations against the Norwegian interpretation of the Treaty and let Norway proceed stepwise. A formal decision to open acreage further north will depend on a combination of audacity and more diplomacy. It is not obvious which government that will be best at this.

Forecast

R&D Companies under-invest in knowledge because they do not benefit from the additional social utility. Hence; the State should add R&D funds for promising sectors. In the petroleum sector, the State is also a major direct owner. There is little doubt that significantly higher State R&D funding for petroleum technology is very profitable, and necessary to meet production targets.

Diversity Statoil has a too dominating operative position at the NCS, and we need a much stronger presence of majors to do all we want to do. There are some indications that Statoil realizes that it needs to focus its portfolio more around larger and strategic projects, and that it could let other companies take over some old operatorships. However, this process is likely to be slow. It will also take a long time before newer and smaller companies can grow into operators for larger areas. The red-green government has done nothing about this, but all four non-socialist parties have since the merger with Hydro taken a strong interest. They have i. a. stated that they will take diversity more into consideration when awarding licenses. This could be a powerful tool in new areas, where majors could be interested, but would be of little help in more mature areas. It would be wrong to bypass Statoil if it clearly has the best application, but one can give priority to diversity when differences are small. To get more diversity in the large parts of the NCS where Statoil has massive control, one must find solutions that also are beneficial for Statoil. This could be done in quiet dialogue where the State also agrees to make some contributions, for example by being more flexible about its ownership position, if package solutions require large capital transactions. A non-socialist MPE minister is more likely to engage in such dialogue.

Petroleum Tax The Norwegian petroleum tax system is far from the world’s worst, but it is not well designed for the very diverse conditions at the NCS. The main disadvantage is that it taxes value creation from knowledge and technology the same way as “free” resource rent. The consequence is that companies have poor incentives to take on demanding projects where the input of organizational resources is large compared to the risk-weighted post-tax profit. This is evident in the case of increased oil recovery (IOR), where more effort is needed for each percentage of final recovery added. The Government’s target production path assumes unprecedented IOR achievements, including much more demanding drilling and technology development. This cannot be achieved without extra incentives. The non-socialist parties have therefore stated that they will consider tax amendments that could encourage IOR. Targeting IOR as such is infeasible, since it is impossible to separate IOR from the entire field development. A tax reform should also encourage other demanding projects, such as exploration for smaller prospects and in frontier areas with special challenges, such as sub-basalt. A non-socialist government will therefore have to look for a more generic reform. My favourite is a production allowance against special tax, since this is independent of oil price movements. It is also independent of the financial investment and therefore a better proxy for returns to intangible investments.

R&D funding under the current government has been erratic. This is part of the general fight over budget priorities, depending much of the political clout of various ministers, but also on how much political priority that is given to renewable energy and similar. It is hard to predict how this will work out under different governments. However, the non-socialists have a general ambition to increase the total R&D budget by holding back on current consumption. If they can achieve this, which is hard, it could be more also for petroleum-directed R&D.

Infrastructure Future Barents Sea and LoVe development will depend much on a gas pipeline with spare capacity, connecting the existing Gassled system with the Barents Sea. Currently, this competes with a smaller pipeline and a second LNG train at Melkøya. The decision has been delayed, and could be delayed further, until after the election. It is possible that investment in a large pipeline can be decided commercially, but it is also possible that some State contribution as well as some political creativity is required. The indication is that the current government has a preference for the pipeline as an important infrastructure investment for a long northern future, while less is known about the non-socialists. It is possible that a red-green government will be more willing to invest State funds and take more financial risk than a non-socialist government, but also that the Socialist Left Party will oppose the pipeline to limit the activity level and make LoVe development harder.

The supply industry All of the policy improvements above will favour also the offshore supply industry. Like all industry, it is also influenced by a government’s general macroeconomic policy, tax policy, etc. Conventional wisdom is that a non-socialist government is more industry friendly, hereunder for example more likely to reduce capital taxation for companies, but this is best left as everybody’s guess. A very hot issue is how to achieve widespread industrial spin-offs in Northern Norway. Albeit the Conservatives have had some interesting proposals about funding systems etc in connection with the LoVe issue, the general will and ability is probably the same for both government options. My own pet idea is to develop a cluster for oil spill preparedness and similar in Northern Norway, since this largely is a missing part of the national cluster, no other countries have taken leading positions, and we have many very promising single companies already. Because of the special nature of the preparedness industry; that it can face extremely large demand at irregular times when accidents occur, but much less demand in between, this is an interesting problem of translating peaks to annual demand. We would also need an open and competitive NCS home market, including some services that today are closed. Solving these riddles will take much creativity and will to modify existing structures, but the reward could be very high in terms of a new export industry, and of course much better preparedness. Maybe simply changing the political crew could open for more thinking “outside the box”.

Forecast

Oil and gas production in Norway to reach a new peak around 2022

By Jarand Rystad

As shown in this field by field production profile for Norway, we see that the oil and gas production peaked in 2003 and has since then been on decline due to rapid decline of old, large oil fields (brown colors). However, exploration in recent years at NCS has yielded excellent results, and production in Norway is likely to reach a new peak at above 4 million barrels oe. per day in 2022 (green colors). Norway was actually number one exploration nation globally in 2011. We do also observe that about fifty percent of the production by then will come from new fields, requiring significant investments in new infrastructure. Existing fields will still need the same levels in total spend as today for drilling, modifications and maintenance. Thus, we should expect a significant increase in the total spend level at NCS. Based on current exploration activity and discovery trends, we will continue to find new resources at NCS contributing with 65% of the production at NCS in 2040 (blue colors).

Jarand Rystad, CEO Rystad Energy

Forecast

Oil companies spending in Norway to grow significantly towards 2015 This graph shows spend levels in Norway for oil companies split into different spending categories. The text in the graphics gives the actual spend item. Large items are from the top “transportation fees” (primarily gas pipelines) and “salaries” (within oil companies). Then there are 150 different oil service segments, including “LNG facility” (orange), seismic (gray), supply vessels (violet), subsea equipment (light blue), semi drilling rig (medium blue), jack-ups (light gray-blue), casing steel (brown-red), platform topsides (yellow) and engineering (green) to name a few. We see that spend levels and NCS doubled from 2003 to 2009 in nominal terms. This was driven both by price increase and activity growth. Going forward, activity growth will be the main growth driver. We will see an increase from 30 to 50 mobile drilling units towards 2016. This will add the capacity needed to see a significant step-up in production drilling. Exploration drilling will probably stay at the current level of 50 wells per year. Number of producing platforms will increase by 10, and another 25 subsea tie-backs will be brought into production.

Oil and gas companies spend (investments and operating costs) at NCS, by spend category NOK million

Forecast

The Stavanger region – clear number one as supplier to the Norwegian oil sector The Stavanger region is a clear number one in deliveries to Norwegian oil and gas fields (including terminals and pipelines). Key segments from Stavanger are maintenance services, rigs and well services, but all segments are represented. Oslo/Akershus is number two. Key segments from Oslo are engineering, seismic, topside and processing equipment and subsea equipment. Nordvestlandet is number three, with logistics/base operations, yards, ship owners and maritime equipment providers as the large segments. Bergen area is number four, with rigs and operational and professional services as some of the large segments. Oil service companies in Norway delivered goods and services for NOK 207 billion to NCS in 2010. In addition, these companies did export goods and services for NOK 140 billion. Largest export regions were “Sørlandet” (drilling equipment) and Oslo/Akershus.

120

Bergen Area Haugesund/Stord Area Nord-Norge Nordvestlandet Not in Norway Oslo/Akershus Sørlandet Stavanger Area Trøndelag Vestfold/Buskerud/Grenland

100

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

02/

Exploration

The Barents Sea exploration boom

e x p l o r at i o n

Exploration on the Norwegian Continental Shelf Forecast 2012-2013

45-55 wells pr year

Exploration results 2011

52 wells 22 new discoveries (16 in the North Sea, 3 in the Barents Sea)

(Exploration and concept studies)

45-55 NOK 32,4 wells prbillion year

Wisting (532), Juksa/Snurrevad (490) Apollo (615), Byrkje/Gloppen (607) Darwin (531), BĂ¸nna (529), Ensis (393B)

Barents Sea

Albert (519)

45-55 Norwegian wells prSea year

King Lear (146)

45-55 North wells prSea year

Key wildcats in 2012-2013

Annual investments

Significant discoveries to be delineated Skrugard/ Havis

Beta Skarfjell X Johan Sverdrup Butch

Norvarg

e x p l o r at i o n

The Barents Sea exploration boom "Everything is turned upside down" Skrugard and Havis have caused a Barents Sea exploration boom, and even the elephant discovery Johan Sverdrup in the North Sea hasn´t got the potential to overshadow the development in the north. "The area has great potential, but many questions still remain. Can we imagine a formation peppered with discoveries, something like what we have along the Viking graben and Statfjord formation? One can dream", says exploration manager Sissel Eriksen at the Norwegian Petroleum Directorate (NPD).

Skrugard production from 2018 Central to the ongoing work in the north is Statoil´s activities in and around the Skrugard/Havis license with planned drilling of the prospects Nunatak, Skavl, Drivis and Iskrystall. The area is being considered for development with a floating production unit which will have capacity for processing and transport from other prospects in the area, which could provide a quick and costeffective development of the discovery. Currently Skrugard/Havis is estimated to contain between 400 and 600 million barrels of oil. "We have explored the Barents Sea, both left and right and up and down. It has been a fantastic development, and only during my four years as vice president for exploration, everything has been turned upside down. There will be a consistently high level of exploration activity in the Barents Sea in the years to come. This is as a result of a steady licence allocation profile, from both the APA and other licensing rounds. But the wells can be postponed, partly because of limited rig capacity", says Eriksen.

Great expectations for Hoop area Statoil will also drill in other areas of the Barents Sea, Apollo in license 615, Ensis in 393B and Askepott close to Snøhvit in 448. Also last year's other interesting discovery, Total's Norvarg, will be delineated by the end of 2013. Preliminary estimates of the size of the discovery are that it contains between 10 and 50 billion cubic meters of recoverable gas, but Norvarg is located far from existing infrastructure. "I am very excited about what's happening north of Norvarg, the so-called Hoop area, where OMV will drill Wisting and Statoil Apollo. As we go further north, it will be interesting to see how the geological models strike there. Although this is pioneering work and terribly far from shore, it might be a development in the long term. The Norvarg discovery is positive, but it needs more resources", says Eriksen.

e x p l o r at i o n

The 22nd round The Ministry of Petroleum and Energy has submitted a proposal for blocks through a tender for the 22nd round out to public consultation. The proposal includes a total of 86 blocks by 72 blocks in the Barents Sea and 14 blocks in the Norwegian Sea. "The areas north of Skrugard have been nominated in the 22nd licensing round, which is now out for consultation. This is an area where the chance of success has increased dramatically, and there is reason to believe that this is the most sought after area in the next round", says Eriksen.

"Set back" After the disappointments of Victoria, Gro and Dalsnuten, the desire to explore deep waters in the Norwegian Sea has been significantly reduced."The age of major discoveries appears to be over in the Norwegian Sea, but we still make good and important discoveries in the fields near locations such as Zidane and Maria. In deeper water, we have had a little setback", Eriksen admits. In recent years, American companies ExxonMobil and Chevron have secured large areas west of the Norwegian Sea through the awards in the 20th and 21st round. The duo has won two of the biggest blocks on the Norwegian continental shelf in the same area, respectively, PL520 (about 3,000 square kilometers) and 527 -approximately 3600 square kilometers. By comparison, the Rogaland county is around 9400 square kilometers.

Under the lava Volcanic rocks mask the underlying tlevels and makes seismic imaging challenging. No wells have to date been drilled through the volcanic rocks in the west. Therefore, there are great expectations associated with work done in the area. Experts from 18 oil companies working at the same time, through collaboration Force, aim to find out the possibilities that lie hidden beneath the lava in the Norwegian Sea. Force has long-term plans to drill a test well in the area, but the plans are still a long way ahead. "Subbasalt is exciting, but it is time consuming and difficult. Therefore, the companies are allowed spacious schedules. We have awarded licenses to companies that I'm sure can resolve this in a good way. What happens to the west in the Atlantic Ocean, west of Shetland, the Faeroes and Iceland could affect progress. It's the same basin, and many of the same companies, which will be able to use any new knowledge across borders."

Appraising the Sverdrup

Sissel Eriksen, Exploration Manager at NPD

In the North Sea Johan Sverdrup is the center of attention, and there will be 11 wells drilled around the same Utsira High area. Statoil is planning two appraisal wells on Aldous, while Lundin has ambitions to drill three on Avaldsnes, which is geographically larger than Aldous, but with less oil columns. The estimates for the discovery are currently between 1.7 and 3.3 billion barrels. But many, including Lundin, believes that the upside is even greater.

e x p l o r at i o n

West Hercules, taking on the Skrugard area

The hotspots Over the past three years, the number of exploration wells spudded has been on a par with or greater than the peak period in the early 1980s. And the Skrugard and Havis discoveries in the Barents Sea and the Johan Sverdrup discovery in the North Sea has created two hotspots on the Norwegian Continental Shelf. Although regarded as a mature area, the Utsira High has yielded new types of reservoirs over the past five years. A number of interesting medium-sized discoveries have been made, such as Luno and Draupne. Exploration drilling over the past years has also proven Johan Sverdrup, which will become a major new field development on the NCS. Substantial drilling activity is planned in the area during the time to come. Statoil and Lundin are planning five or six appraisal wells for their joint giant discovery. Lundin is also looking to add resources to its Grieg and Apollo discoveries in the same area. A correlation has historically existed between oil prices and the number of wildcat wells drilled on the NCS. When oil prices rise, the consequence is generally that the number of wildcats increases in the following year. A lot of such wells are spudded in periods with very high oil prices. That occurred in the early 1980s and has been repeated over the past four years.

More to come from the Barents Sea In the Barents Sea, Statoil has established a plan for further exploration drilling in the Skrugard area. The exploration campaign will comprise four new prospects and is scheduled to commence late 2012. The objective is to follow up on the Skrugard and Havis discoveries and to test further upside potential in this area of the Barents Sea. “We are very satisfied with our recent exploration achievements in the Barents Sea. In less than a year, we have made two substantial oil discoveries in PL532, proving 400-600 million barrels of recoverable oil. We have also drilled a successful appraisal well on Skrugard confirming volume estimates and collecting data for field development planning,” says Knut Harald Nygård, Statoil vice president for exploration in the Skrugard area. “We see good opportunities for further upside in the area, and have identified four new interesting prospects. In some of these we have observed flat spots of the same type as in the Skrugard and Havis discoveries.”

e x p l o r at i o n

The four prospects will be drilled back to back with the West Hercules drilling rig, which will be winterised to meet the weather conditions in the Barents Sea. The drilling campaign will start in PL532 with the Nunatak prospect due to be spudded in December this year. Then the rig will proceed to the Skavl prospect in the same licence, and thereafter to the Iskrystall prospect in the neighbouring licence PL608. The fourth prospect to be drilled will be announced at a later stage. Statoil’s ambition is to complete drilling of all four prospects by late spring/early summer 2013. "Our exploration strategy for the Norwegian Continental Shelf focuses both on high-impact discoveries and what we call time-critical ILX, which is exploration close to installations that within a couple of years will have the capacity to receive the oil and gas we find," Tore Løseth, says. Drilling close to existing fields and infrastructure is also a priority for many Norwegian oil companies. In 2012, 40 per cent of Statoil's exploration wells on the NCS will be so called ILX (infrastructure led exploration) wells. ILX drilling is to be carried out close to Oseberg, Snorre and Norne.

Loosing interest in the Norwegian Sea The Norwegian Sea has provided disappointing exploration results over the past two years, and the companies future plans indicate that they to some extent are about to lose interest in this area. Although the good news is that there have already been two successful appraisal wells this year, Wintershall's Maria and RWE Dea's Zidane. The sub-surface in the western part of the Norwegian Sea was affected by extensive volcanic activity when the North Atlantic opened about 55 million years ago. Lava flowing from the Earth’s interior hardened into layers of basalt, a dark hard rock present beneath the western Norwegian Sea. Sedimentary rocks which could contain petroleum in these areas were largely deposited before the vulcanism began, and accordingly lie beneath the basalt. This rock is difficult to “see” through, so the challenge is to obtain an impression of the underlying strata. Much work has been devoted to learning more about what lies beneath the basalt, both by companies in production licences and by other projects, such as the Force collaboration.

Unopened areas Half the areas in which oil and gas are expected to be found have yet to be opened for petroleum activity. That applies to the waters around Jan Mayen, the north-eastern Norwegian Sea; Barents Sea North; the Arctic Ocean, parts of Trøndelag I and II, Møre I, the Skagerrak; the coastline off Finnmark and Troms counties, the Bear Island Fan, and the buffer zone around Bear Island. A number of these areas are interesting for their petroleum potential. However, the level of knowledge, distance to markets and existing infrastructure, environmental assets and other user interests differ between the various areas. The basis for the assessments which need to be made and the time scale from a possible opening process until exploration, discovery, development and production will accordingly vary from area to area. Political decisions are required to open new areas for petroleum activity.

e x p l o r at i o n

Exploring the Norwegian Continental Shelf

Albert (519) Lundin Kakkelborg (370) Wintershall Karpe/Svarthå (552) Statoil

Southern North Sea Noor (457) Wintershall

G (

Crux (053) Statoil

Aldous MN & MS App. (265) Statoil

Luno 2 (359) Lundin

2x Beta App. (375B) Suncor

3 x Avaldsnes App (501) Lundin Apollo App. & Jorvik (338) Lundin

Isbjørn (568) Talisman

BioHI (544) Lundin

Kalvklum (414) De

Lupin (360) Statoil

Ringhorne (027/169)

Carlsberg (495) Lundin

Skagen (498) Lotos

Ogna (453S) Lundin

Geite (497) Det norske Storebjørn (450) Det norske King Lear (146) Statoil

Northern North Sea

Butch App. (405B) Centrica

Frode (299) Talisman

Clapton (440S) Faroe

Trym Sør (147) Dong

Ulvtanna (356) Det norske

e x p l o r at i o n

Odden (318) Statoil

The Barents Sea Apollo (615) Statoil

Wis7ng (537) OMV

Nunatak, Skavl, Iskrystall (532/608) Statoil

GuaranEana (554) Total SkarHell (418) Wintershall

Havis (532) Statoil

Darwin (531) Repsol

Eik (396) Noreco Norvarg App. (535) Total

Salina (533) Eni

Juksa/Snurrevad (490) Lundin

Ensis (393B) Statoil

Bønna (529) Eni

AskepoS (448) Statoil

The Norwegian Sea

mpen et norske

e-‐omr. X 2 ExxonMobil

Skrugard App. (532) Statoil

Byrkje/Gloppen (607) GDF Suez

Je#e (385) Statoil Snadd Out. (212E) BP Zidane 2 (435) RWE Dea

Albert (513) Maersk

Novus (645) Faroe

Cooper (477) Centrica

Maria App. (475BS) Wintershall Rodrigues (475) Wintershall Mjøsa (511) Wintershall

1000

e x p l o r at i o n

1500

E x ploration O ptions A S Exploration Options provides Consultancy and Staff Recruitment services to the upstream oil and gas industry. We source and deliver Professionals and Teams of the highest calibre, in Management, Advisory and Technical areas. We have provided services to clients in Norway, UK, the Netherlands, USA and the Far East since 2000.

2000

Our focus areas are Exploration and Subsurface Evaluation, Portfolio Management and Resource Assessment. 2500

Ph o n e : + 4 7 9 7 5 7 2 8 7 8

w w w. e x p l o r a t i o n o p t i o n s . c o m

ADdress: Skansegaten 13 4 0 0 6 S t a v a n g e r, N o r w a y

info@explorationoptions.com

3000

Source: NPD

From rocks to business

3500

We know the Rocks. We understand the E&P Business. We pride ourselves on bridging the gap between geology and the business. We supply both specialist Consultants and fully integrated Project Teams working either from Client offices or from our offices in Stavanger, performing:

•

We select the right candidate or team for any task

License Round and Existing Acreage Evaluation and Valuation

•

Portfolio reviews, Asset valuations, Options and Strategic direction

•

Resource Assessment from YTF Resources to Reserves. Performance Benchmarking

Strong network, broad professionals & expert skills Exploration Options operates with a mix of Employees and Associate Consultants. Our foundation is our extensive network of seasoned and highly experienced Professionals. Via close dialogue, we match Client needs with Professional aspirations and competence, and provide: •

Exploration, Development and Business Development Managers

•

Explorationists, Geologists, Seismic Interpreters and Reservoir Engineers

•

Advisors in Exploration, Portfolio

Management and Resource Assessment

Learn more about how we can help your business, or if you would like to be considered for a role as an Associate of Exploration Options, contact: info@explorationoptions.com

Integrators who have breadth of capability and excellent communication & leadership skills

4000

We address competency and motivation, and draw on Personnel Assessment experience gained from management of an international subsurface skill pool for an oil major. For your Staff Recruitment, we initially aim to provide candidates 4500 from our existing network, but we can also perform a wider search, and screen and select candidates.

A powerful combination for exploration success Imagination combined with indisputable facts. Our teams comprise Professionals with ground truths 5000 built from in-country knowledge complemented msec by Professionals with worldwide experience, who can deliver new ideas and draw on extensive analogues.

Explore the past - shape the future We provide Training and Forums under this theme, including training for Exploration Managers.

e x p l o r at i o n

W ellbarrier AS Wellbarrier AS is a forerunner and world leader in development of software application for preparation and illustration of well barriers in oil and gas wells. The company was founded and developed by people who inaugurated the well barrier illustration concept in the early 1990â&#x20AC;&#x2122;ies and who have since participated to the writing of the Norsok D-010 Well Integrity standard.

Ph o n e : + 4 7 5 1 6 3 0 8 0 0 FAX : + 4 7 5 1 6 3 0 4 7 1 p o s t @ w e l l b a r r i e r. c o m w w w.w e l l b a r r i e r. c o m

Wellbarrier Wellbarrier is a company providing specialist services relating to well barriers and well integrity. The backbone of the company is a web application that will allow the subscribing users to produce well barrier illustrations with high quality graphics in an efficient manner. The well barrier application is aimed at and being used by independent, national and super-major oil and gas companies in most corners of the world.

Post Montara/Macondo Follow these recent accidents the matter of well integrity and barriers have received significantly more attention, and we see an increasing demand for understanding and conveyance of how safety is taken care of. The use of illustrations for this purpose tells a story of more than a thousand words and ensures that everyone has the save picture of the situation.

Well barrier schematics The concept of making available well barrier illustrations have continuously been improved throughout the years and is now available to the industry as a powerful state of the art web application where the user can perform a large number of well specific adaptations, yet retain a strong and consistent graphical output. It is believed that the well barrier schematics will add improved understanding to all stakeholders

outside those working on the very specific engineering details of the well.

The application The Wellbarrier web application offer a large library of samples from all types of well activities during the life span of the well, from drilling through well testing, completion, intervention and workover to plug and abandonment of the well. The user can also build his own well configuration from scratch, making the well illustration 100% well specific. The web application is today widely used in operations on the Norwegian continental shelf and subscribers in Europe, America and the Far East are now using the illustration tool.

Consultancy services Wellbarrier offer consultancy services to operating companies, research institutions and regulatory bodies. Services provided may be assessments on particular well situations, new technology, setting up company libraries based on existing well portfolio, reviews and audits.

Training Training courses are held on use of the Norsok D-010 standard, well barrier design and well barrier drawing philosophy.

ADdress: Forus Atrium, Va s s b o t n 1 5 , 4 3 1 3 S a n d n e s , Norway M a i l Ad D r e s s : PO B o x 8 0 4 4 , 4 0 6 8 S t a v a n g e r, Norway

Contact Contact us for more information on how our application can help you convey to all stakeholder how you establish and maintain you well barriers in an efficient and consistent graphical manner.

e x p l o r at i o n

W ell Cem AS WellCem AS is a Norwegian Technology Company providing Well Therapy solutions to the oil and gas industry. Has developed and patented a multi component resin based polymer with qualities far superior to cement. ThermaSet® is unique by that we can control the setting time 100% and it’s activated by the temperature not time. Head office in Tananger, Operations carried out globally. Established operation in ME and Canada

Ph o n e : + 4 7 5 2 9 8 6 5 0 0 w w w.w e l l c e m . c o m

A D d r e s s : H a m r a s l e t t a 9, N - 4 0 5 6 , Ta n a n g e r M a i l Ad D r e s s : PO B o x 1 2 1 5 S l u p p e n , N -74 6 2 , Tr o n d h e i m

Applications

•

Right angle setting

•

Total loss circulation

•

Pumpable through BHA, MWD & LWD,

•

Casing & tubing leak repairs

•

Water and gas shutoff

•

saving tripping time

ThermaSet® is a solution for micro channaling and porous formation as it can be deployed as a particles free plug, creating bariers within the formation, not just in front of it, Setting time can be controled from mintes to hours.

•

Controllable weight

Formation’s heat is the triger

Plugging-off control lines

•

Controllable viscosity

•

Plug for P&A

•

Controllable setting time

•

All formations

•

Use conventional mixing & pumping

Benefits •

High compressive strength

•

Reduces NPT

•

Recover well integrity

•

Fast and controlled setting

•

Safe drilling and cementing

Features •

Particles free

equipment Total loss circulation is most serious problem occurs while drilling, cementing and especially well control situations. It is the responsible for more than 20% for the whole well’s budgets in many cases. Remidition of total losses while drilling is possible now by the use of ThermaSet®, with great success, with no traditional LCM and no fibers materials involved in this unique solution. The material used in the plug is even far harder than conventional cement, non-permeable and immissible, used nowadays to bullhead hydrocarbons immigrated via cracked cement in annulus in harsh environments,

The heat generated by the formation is what needed for the plug to cure. Once the plug is set, high properties are obtained, compressive strength, non-permeable. Many jobs been completed with impressive results, ThermaSet® is used for multi-purposes such as casing & tubing leakes, resairs, hydraulic lines plugging, ThermaSet® is a solution deployed while drilling. There is no need for tripping, it can be pumped through BHA.

ad moment

We have a

huge wingspan and we set our sights high. Through an uncompromising commitment to providing high quality products and services, we will meet our customers’ requirements and expectations – and be recognized for our solid business integrity.

Albatross Services operates within the following market areas: 1. Engineering, scanning, design and calculation 2. Modification and maintenance of drilling rigs and mobile/floating installations 3. Participate in Special Periodic Survey (SPS) 4. Modification and installation of third-party equipment 5. Installation and replacement of drilling and pipe-handling equipment on drilling rigs and fixed installations 6. Service, repair and upgrading of drilling equipment on fixed and floating platforms 7. Mechanical fabrication work 8. Development and delivery of smaller “custom-made” products for the drilling operation

Challenge meets experience www.albatross-services.no

Albatross Service AS • Hammaren 23, N-4056 Tananger Albatross Service AS • CCB, Ågotnes, Hall VE 25, N-5347 Kystbasen Ågotnes

• •

Tel. +47 40 00 77 00 Tel. +47 56 32 30 98

Fugro Satellite Positioning: world leaders in high performance DGNSS services for Dynamic Positioning and Offshore Survey applications.

Fugro Survey AS Tel: +47 55 34 94 00 www.starfix.com

OCEaN Rig Ocean Rig is one of the world’s largest rig companies that operate exclusively in ultra deep water. The company currently owns two rigs, Eirik Raude and Leiv Eriksson, and four drillships. Next year it will take delivery of three new, ultra modern drillships from the Samsung yard. All nine vessels are specially designed and constructed to work in ultra deep water and rough climatic conditions. Ocean Rig currently has 1,400 employees. Next year it will hire a further 600 new employees.

Phone: +47 52 98 80 00 Fax: +47 52 98 80 99 Mail: oras@ocean-rig.com www.ocean-rig.com

Leiv Eriksson is making a long-awaited comeback to the Norwegian shelf.

Address: Vestre Svanholmen 4, Forus, 4313 Sandnes, Norway Mail Address: PO Box 409, 4067 Stavanger , Norway

Rumour has it that Leiv Eriksson is a so-called ‘lucky rig’? “Yes, a lot of our customers focus on that. And I guess the rig does have a better track record for finds than is normal. Even on its first assignment, off the coast of

“We are looking forWard to hiring neW team players Who care!”

Angola, it hit the black bullseye. Since then it has made a number of significant finds for our customers.” What characterises Ocean Rig in 2012? “Firstly, we have a good head of steam. The company is growing and we have a lot of exciting projects on the go. And secondly, we will take delivery of three new, modern drillships next year, which will give us a portfolio of nine drilling vessels. At the same time, we have gained solid international experience in the last few years as a deep water operator with projects in all of the deep water regions.”

Frank Tollefsen, Chief Operating Officer, Ocean Rig You seem to have ambitious plans for growth? “The current plan is to grow to a 15–20 rig company during the next few years.

In October, the drilling rig Leiv Eriksson will start its return home after many years in the world’s deepest ocean areas. Leiv Eriksson will lower its drill in the North Sea as early as January 2013. We took the opportunity to have a chat with Frank Tollefsen, Ocean Rig’s COO, at its head office in Stavanger.

We would then be a leading world class drilling company, but would also have a permanent presence in all of the world’s major, deep water fields.” Ocean Rig is known for its unique HSE culture, what is that based on? “The rigs are cold steel. They can’t do anything without people. We are so fortunate to have such fantastic employees, which is why it is simply natural for us to do everything we can to take care of them. Our CARE philosophy is part of this. The first commandment in CARE is: People do not care what you know until they know that you care.” A comeback on the Norwegian shelf, does that means you will need more people?

Ocean Rig is finally returning to the Norwegian shelf, what took you so long?

”Absolutely! We are looking for people in all disciplines to work both nationally

“Quite simply, we won better deals and longer contracts in international waters.

and in an exciting international environment. In the next 12 months we expect

Having said that, it feels good that Leiv Eriksson is finally heading ”home”, for 3–6

to hire 600 new employees, including new staff for Leiv Eriksson. We’re hoping

years this time. After all, when the rig was built, it was precisely for Norwegian

for a lot of applicants from Norway. If anyone reading this is interested, and really

conditions.”

cares, we would love to hear from them.”

03/

Rig Market

All sold out - 17 new rigs on its way

RIG MARKET

The drilling rigs in the NCS

Bideford Dolphin

Borgland Dolphin

Bredford Dolphin

COSLInnovator

COSLPioneer

COSLPromoter

Type: Semi Owner: Dolphin Customer: Statoil Contracted to: Jan. 2014 Day rate: $385.000

Type: Semi Owner: Dolphin Customer: Rig Manga. NO Contracted to: Jan. 2014 Day rate: $530.000

Type: Semi Owner: Dolphin Customer: Lundin Contracted to: Sep. 2013 Day rate: $333.000

Type: Semi Owner: COSL Drilling Euro. Customer: Statoil Contracted to: Jun. 2020 Day rate: $335.000

Type: Semi Owner: COSL Drilling Euro. Customer: Statoil Contracted to: Aug. 2014 Day rate: $320.000

Type: Semi Owner: COSL Drilling Euro. Customer: Statoil Contracted to: Jun. 2020 Day rate: $335.000

Deepsea Atlantic

Deepsea Bergen

Island Innovator

Leiv Eiriksson

Maersk Giant

Maersk Guardian

Type: Semi Owner: Odfjell Drilling Customer: Statoil Contracted to: Aug. 2014 Day rate: $490.000

Type: Semi Owner: Odfjell Drilling Customer: Statoil Contracted to: Jun. 2017 Day rate: $339.000

Type: Semi Owner: Island Offshore Customer: Lundin Contracted to: Mar. 2015 Day rate: Private

Type: Semi Owner: Ocean Rig Customer: Rig Manag. No. Contracted to: Mar. 2016 Day rate: $545.000

Type: Jack Up Owner: Maersk Drilling Customer: info: offshore.no Contracted to: Aug. 2014 Day rate: Private

Type: Jack Up Owner: Maersk Drilling Customer: info: offshore.no Contracted to: Mar. 2014 Day rate: Private

Maersk Innovator

Maersk Inspirer

Maersk Gallant

Ocean Vanguard

Polar Pioneer

Rowan Gorilla VI

Type: Jack Up Owner: Maersk Drilling Customer: ConocoPhillips Contracted to: Mar. 2017 Day rate: Private

Type: Jack Up Owner: Maersk Drilling Customer: Statoil Contracted to: Jun. 2015 Day rate: Private

Type: Jack Up Owner: Maersk Drilling Customer: ConocoP./Statoil Contracted to: Apr. 2016 Day rate: $312.000

Type: Semi Owner: Diamond Customer: Statoil Contracted to: Feb. 2015 Day rate: $354.000

Type: Semi Owner: Transocean Customer: Statoil Contracted to: Feb. 2014 Day rate: $519.000

Type: Jack Up Owner: Rowan Drilling Customer: ConocoPhillips Contracted to: Sep. 2016 Day rate: $350.000

Rowan Norway

Rowan Stavanger

Scarabeo 5

Scarabeo 8

Songa Dee

Songa Delta

Type: Jack Up Owner: Rowan Drilling Customer: ConocoPhillips Contracted to: Jul. 2016 Day rate: $350.000

Type: Jack Up Owner: Rowan Drilling Customer: Talisman/Lundin Contracted to: Jul. 2016 Day rate: $350.000

Type: Semi Owner: Saipem Customer: Statoil Contracted to: Jan. 2014 Day rate: $399.000

Type: Semi Owner: Saipem Customer: ENI Norge Contracted to: Jul. 2017 Day rate: $460.000

Type: Semi Owner: Songa Offshore Customer: Statoil Contracted to: Jul. 2016 Day rate: $423.000

Type: Semi Owner: Songa Offshore Customer: Statoil Contracted to: Jul. 2016 Day rate: $448.000

RIG MARKET

Songa Enabler

Songa Encourage

Songa Endurance

Songa Equinox

Songa Trym

Statoil CAT B

Type: Semi Owner: Songa Offshore Customer: Statoil Contracted to: Sep. 2023 Day rate: $450.000

Type: Semi Owner: Songa Offshore Customer: Statoil Contracted to: Jul. 2023 Day rate: $450.000

Type: Semi Owner: Songa Offshore Customer: Statoil Contracted to: Feb. 2023 Day rate: $428.000

Type: Semi Owner: Songa Offshore Customer: Statoil Contracted to: Nov.2022 Day rate: $428.000

Type: Semi Owner: Songa Offshore Customer: Statoil Contracted to: Jul. 2015 Day rate: $365.000

Type: Semi Owner: Aker Oilfield Serv. Customer: Statoil Contracted to: Sep. 2023 Day rate: Private

Statoil CAT J 1+2

Stena Don

Transocean Arctic

Transocean Barents

Transocean Leader

Transocean Searcher

Type: Jack Up Owner: TBA Customer: Statoil Contracted to: No contract Day rate: No contract

Type: Semi Owner: Stena Drilling Customer: Statoil Contracted to: Feb. 2014 Day rate: $400.000

Type: Semi Owner: Transocean Customer: info: offshore.no Contracted to: Mar. 2014 Day rate: $423.000

Type: Semi Owner: Transocean Customer: Det norske Contracted to: Jun. 2016 Day rate: $570.000

Type: Semi Owner: Transocean Customer: Statoil Contracted to: Apr. 2015 Day rate: $409.000

Type: Semi Owner: Transocean Customer: BG Contracted to: Jun. 2016 Day rate: $394.000

Transocean Spitsbergen

Transocean Winner

West Alpha

West Elara

West Epsilon

West Hercules

Type: Semi Owner: Transocean Customer: Statoil Contracted to: Jul. 2015 Day rate: $500.000

Type: Semi Owner: Transocean Customer: Lundin/Marathon Contracted to: Okt. 2013 Day rate: $487.000

Type: Semi Owner: Seadrill Customer: ExxonMobil Contracted to: Apr. 2016 Day rate: $476.000

Type: Jack Up Owner: Seadrill Customer: Statoil Contracted to: Apr. 2017 Day rate: $358.000

Type: Jack Up Owner: Seadrill Customer: Statoil Contracted to: Jan. 2015 Day rate: $283.000

Type: Semi Owner: Seadrill Customer: Statoil Contracted to: Dec. 2016 Day rate: $495.000

West Linus

West Navigator

West Venture

XL Enhanced I

XL Enhanced II

XL Enhanced III

Type: Jack Up Owner: Seadrill Customer: ConocoPhillips Contracted to: May 2019 Day rate: $361.000

Type: Drillship Owner: Seadrill Customer: Shell Contracted to: Jul. 2014 Day rate: $609.000

Type: Semi Owner: Seadrill Customer: Statoil Contracted to: Jun. 2015 Day rate: $435.000

Type: Jack Up Owner: Maersk Drilling Customer: Total Contracted to: Oct. 2017 Day rate: $377.000

Type: Jack Up Owner: Maersk Drilling Customer: Det norske Contracted to: Nov. 2017 Day rate: $377.000

Type: Jack Up Owner: Maersk Drilling Customer: Statoil Contracted to: Jul. 2019 Day rate: $397.000

RIG MARKET

No available rigs in Norway A huge optimism in the oil industry word-wide brings the number of available rigs in Norway to zero. And in addition the lead-time, from signing a rig lease contract to the time it can actually be used, is increasing.

Two rigs in 2013 For the latest few years the rig market in Norway has been the same - no rigs are free for hire, and exploration companies must wait about a year for the next rig to go off contract. The overview of the contract status we present in this chapter shows that there are only two rigs going off contracts in 2013: The Bredford Dolpin and Transocean Winner are the only two rigs with contracts that expire next year.

Planning wells

Anual overview of future availeble rigs

Having said that, 2014 now gives more opportunities for the oil companies. In total 12 rigs should go off contract this year. Knowing that many oil companies are planning a great number of wells in this period, rig companies should expect strong day rates in upcoming deals. “Development projects such as Martin Linge, Draupne, Dagny and Brynhild will give demand for larger Jack Ups from 2014. The rig companies with available units may win strong day rates, and I cannot disregard contract for new builds if rig companies can guarantee delivery in this time window, says rig analyst Bjørn Thoresen in Swedbank First Securities.”

Semi subs

Jack up

5 2

3 2 2

2013 2014 2015 2016 2017

2018

2019 2020 2021 2020 2021

RIG MARKET

Appraisal wells

Number of exploration wells spudded

Wildcat wells

50 40

20 10 0

1966

1971

1976

1981

1986

1991

1996

2001

2006

2011

Source: Norwegian Petroleum Directorat

Expecting high drilling activity During recent years there has been a very tight rig market in Norway. Due to under-supply of drilling rigs prices have gone sky high. In the next few years we will see a growth in number of rigs in Norway. And this is much needed, because the oil companies want to drill numerous wells in the near future.

Exploration and production One of the well paid of focuses recent years have been the desire for new discoveries. “In terms of exploration drilling, long-term trends have shown increased exploration success rates. This is largely due to drilling in connection to existing infrastructure, in addition to increased geological understanding and technological progress. We expect exploration drilling to remain high in the years to come, also due to the availability of acreage. In terms of production drilling, the portfolio of assets that are not sanctioned for development yet is still significant, both in the North Sea, the Norwegian Sea and also the Barents Sea. Drilling is key to increased production and hence we expect activity to remain high, says Bhatti”

Growing Jack Up market As one can read later this chapter, a total of seventeen rigs are now in line to enter the NCS during the years 2012-2015. None of the rigs operating here today will leave Norway in the same time window. “In terms of supply, ordering harsh-environment rigs that are certified to work in Norway has been a trend lately. However, it is not given that these rigs will work in Norway upon delivery since the international market for ultra-deepwater rigs is - and is expected to be under-supplied in the near future. Contracting of harsh-environment jack-ups has not shown the same trend and our estimates suggest that the growth in jack-up demand will be higher than growth in floater demand. Hence we expect the Norwegian market to remain tight in terms of supply/demand in the near future.”

Huge investments The largest Jack Up player on the NCS is Maersk Drilling. Today Maersk is operating six rigs in Norway, but it has three harsh environment Jack Ups under construction. These are Maersk says, the most advanced Jack Ups ever - at a cost of USD 650 million each. To earn money on such an investment, high day rates are essential. “A part of the problem here is that these rigs are expensive to build and with

day rates below the USD 400.000 level, profitability is lower than you can expect from investing in ultra-deepwater capacity. That being said, longer contracts, fewer market participants and a more stable rate environment have caught the interest of some rig companies, leading to investments in this segment.”

Strong floater deals Measured in numbers of units, the floaters still dominate in Norway. Many of these rigs are old - the average age is over 20 years. But still one can see strong day rates in this segment, as well. Early this year the West Navigator won a new contract at USD 590.000 per day. And as late as this summer the 1986-built West Alpha received a letter of intent with a day rate at USD 562.000. “Such day rates are normally associated with modern ultra-deepwater rigs. Day rates in Norway have risen, partly due to increased demand from international markets that attracts and retains rigs that can potentially work in Norway. It might well be possible that rates surpass the USD 600.000 mark, but this will probably be temporary as supply of harsh-environment floaters is expected to increase going forward, David Bhatti predicts.”

RIG MARKET

Seventeen rigs in line In the near future number of rigs will grow quickly in Norway. In this section we provide a list of rigs with confirmed contracts for work in Norway with start up in the 2012-2015 period.

is for 15 wells, starting late 2012 or early 2013. In addition there are three options, each of six wells.

NOK 5,2 billon

Another two Jack Ups

ConocoPhillips has entered into two agreements with Rowan Companies with a total value of at least NOK 5.2 billion. The first contract is for Rowan Norway. The rig will work for Xcite Energy in the UK before going into a yard in November ahead of the new agreement in Norway. The contract extends over three and a half years, but the agreement also includes options for a total of two years beyond this. The second rig, Rowan Gorilla VI, starts its contract with three and a half year duration from late Q1 2013. The rig has the same day rate as Rowan Norway. In total Rowan has three rigs heading for Norway, now. Lundin has signed at contract for lease of Rowan Stavanger. Start up is second quarter 2014, and the firm part of this contract period ends November 2016.

The largest jack up player on the NCS, Maersk Drilling, has two rigs under construction and on its way. The first rig, XL Enhanced I, has received a Letter of Award from Total E&P Norge. The rig will be used for drilling demanding and complex wells on the Hild field development in the Norwegian North Sea. The firm contract duration is four years and the agreement also includes four oneyear options. The contract value for the four-year firm period is approximately USD 550 million. The contract is expected to commence operating at the latest by the third quarter 2014 upon arrival of the rig in the Norwegian North Sea from a construction yard in Singapore. Rig number two, XL Enhanced II, has received a Letter of Award from Det norske. The rig will be used for development

Seven super rigs Statoil will build at least seven new rigs, through its new rig concepts, described later in this chapter. The oil giant has ordered four CATD-rigs from Songa Offshore. These will be delivered in 2014 and 2015. And towards the end of 2015 the first CATB rig, ordered from Aker Oilfield Services, is expected to be finished. In addition at least two CATJ rigs are coming, which have not yet been awarded. A rig that has been expected to return to Norway for a long time is the Leiv Eiriksson. Rig Management Norway now has secured a deal worth up to NOK 3.8 billion with an expected duration for 1070 days. The contract

RIG MARKET

drilling on the Draupne field located in the Norwegian North Sea. The firm contract duration is three years with options for Det norske to extend up to a total of seven years. The total contract value for the firm three-year period is approximately USD 413 million.

More from COSL and Seadrill COSL Drilling Europe will soon have three drilling rigs in operation in Norway. Both COSLInnovator and COSLPromoter will be joining COSLPioneer on the shelf this year - all three working for Statoil. COSLInnovator is contracted throughout 2019 and COSLPromoter a couple of month longer.Seadrill has a new jack up under construction at the Jurong Shipyard in Singapore, named West Linus. The rig, which will be completed in the third quarter of 2013 and which will cost around NOK 2.9 billion , will go directly into a contract with ConocoPhillips on the Norwegian Continental Shelf. The value of the five-year contract for the Ekofisk operator is NOK 3.8 billion. This has a five year duration and options for another five. With delivery approaching, the Island Innovator originally had no contract. But after the rig was converted into a conventional drilling unit and Odfjell Drilling took over the management, things got better. Lundin awarded the rig a contract for drilling of 12 wells from the second quarter of 2013.

Rigg

Type

Owner

Customer

Contract start

Day rate/USD

Songa Equinox

Semi

Songa Offshore

Statoil

3Q 2014

428.000

Songa Endurance

Semi

Songa Offshore

Statoil

1Q 2015

428.000

Songa Encourage

Semi

Songa Offshore

Statoil

2Q 2015

450.000

Songa Enabler

Semi

Songa Offshore

Statoil

4Q 2015

450.000

Statoil CAT B

Semi

Aker Oilfield Service

Statoil

3Q 2015

640.000

Statoil CAT J1

Jack Up

Not awarded

Statoil

4Q 2015

No contract

Statoil CAT J2

Jack Up

Not awarded

Statoil

4Q 2015

No contract

Rowan Norway

Jack Up

Rowan Companies

ConocoPhillips

1Q 2013

350.000

Rowan Gorilla VI

Jack Up

Rowan Companies

ConocoPhillips

1Q 2013

350.000

Rowan Stavanger

Jack Up

Rowan Companies

Lundin

2Q 2014

350.000

Semi

Ocean Rig

Rig Manag.Norway

1Q 2013

560.000

Maersk Enhanced I

Jack Up

Maersk Drilling

Total

2Q 2014

376.000

Maersk Enhanced II

Jack Up

Maersk Drilling

Det norske

3Q 2014

377.000

COSLInnovator

Semi

COSL Drilling Europe

Statoil

3Q 2012

335.000

COSLPromoter

Semi

COSL Drilling Europe

Statoil

4Q 2012

335.000

Jack Up

Seadrill

Conoco Phillips

2Q 2014

367.000

Semi

Island Offshore

Lundin

2Q 2013

Leiv Eiriksson

West Linus Island Innovator

RIG MARKET

Next generation of super rigs Statoil's fit for purpose rig concept will provide huge gains. Through a wide range of super rigs Statoil wants to set a new standard for drilling in Norway. It is all about building so-called fit for purpose rigs. Norway is a world leader when it comes to recovery rates from the oil fields. Today Statoil achieves 57 percent recovery from fixed installations and 47 percent from subsea wells. For comparison, many other countries manage recovery rates of between 35 and 40 percent. This year Statoil passed the historical 50 percent totally, but this is not enough.

- Always in front By significant investments in specially designed drilling rigs for the Norwegian shelf subsea wells now shall follow up. - The Norwegian continental shelf has always been in front and often set the standards globally. Our initiative, custom designed rigs for specific tasks - developed together with the industry - may be something we can see being done in other regions as well, says Chief Procurement Officer in Statoil, Jon Arnt Jacobsen. He cannot comment on how much the recovery rate from Statoil's 500 subsea wells could be increased, but there is no doubt that every single percentage point of improved recovery means billions more Norwegian kroner.

Ownership - but not a rig company The various new rig concepts were presented to the international press during OTC in Houston and many journalists were concerned about the ownership model that was outlined for the new Jack Ups and CAT J rigs, where Statoil has said they want the licenses to consider owning them. These new rigs may work with long-term horizons of between 10 and 15 years in the same license, and thus deliver more efficient and predictable use of the rigs. Statoil has no plans to become a rig company, Jacobsen says. - This does not mean that we will go down the supply chain, if someone is concerned about this. These rigs will still be operated by suppliers and in addition there is also a huge demand for many other new rigs on the Norwegian continental shelf in the coming years, Jacobsen comments on the question of how he perceive the concern from rig companies on these major investments.

Long, firm contracts Statoil's new approach to the rig market was also presented at OTC in 2011. At that time, Jacobsen emphasised that the industry had asked for predictability and Statoil responded by tendering contracts for up to 20 years. Yet, none of the rig companies wanted quite as long as contracts for the CAT D-rigs. As is already known, Songa Offshore won the contracts for four rigs with eight years' duration.

Hoping on one rig - and won four - When the bidding process started we hoped for a contract on one of the rigs. Now, we have four, says Asbjørn Vavik, CEO of Songa Offshore. The estimated contract value for the new rigs are 7.5 billion Norwegian kroner per rig for a fixed period of eight years, including four three-year options per rig. Songa Offshore now has a backlog on the four rigs worth almost NOK 29 billion. The day rate for the first two rigs is $428,000. Rig three and four are slightly higher – at about $450,000, according to Vavik. - The price has obviously been important for Statoil and some will probably argue that the day rate is somewhat low for the two first rigs. But we focus on the fact these rigs are huge building blocks for Songa and that they are 80-90 percent repaid during the fixed contract period, he says.

Seven Songa rigs Songa Offshore already has Statoil as an important customer. The rig company has three rigs in operation for the oil giant on the Norwegian continental shelf. In a few years it will be seven. This will happen within a short time - the four super rigs will arrive over fifteen months. - We see it as an advantage that they come close - but not too close. In this rate that is planned from February 2014 to May 2015 a commissioning team can go from rig to rig. This provides significant savings, so we are happy with this.

The CAT B rig Statoil and the licensees have also awarded Aker Oilfield Services an eight-year contract with options for three times two years for the category B service rig. The estimated value of the contract is USD 1.9 billion. In addition to rig rental, the contract includes rental of the necessary equipment and services to carry out well intervention, sidetrack drilling, ROV operations, well testing and cementing. The rig will be in service during 2015.

Reducing cost by 60 percent In late May Statoil awarded contracts for new light well intervention (LWI) vessels. Statoil has, on behalf of relevant licensees, awarded a contract to Island Offshore Management and Eide Marine Services for the charter of a total of three LWI vessels. - These purpose-built vessels are used for performing light well interventions, well operations and well maintenance without a riser-based system. Statoil can reduce well intervention costs by about 60 percent by utilising a LWI vessel instead of a conventional rig, they claim. These contracts are worth a total of NOK 9.4 billion. The category A units will perform services for Statoil and the partners on the Åsgard, Norne, Gullfaks, Oseberg, Heidrun, Snøhvit, Tyrihans, Tordis/Vigdis, Snorre, Statfjord and Sleipner fields.

RIG MARKET

Review of the various rig types and status of each concept Source: Statoil

CAT A:

Description: Vessel for light well intervention. Used for light wire line operations in subsea wells. Can also be used to plug wells. Status: Island Offshore was awarded a new four year contract for both Island Frontier and Island Wellserver. Eide Well Intervention (picture) is awarded an eight year contract for their newbuild.

CAT B:

Description: A fit for purpose rig for well intervention and sidetrack drilling through production tubing (so-called â&#x20AC;?through tubing drilling and completionâ&#x20AC;?). For use in wire line operations, coiled tubing, plugging of wells and sidetrack drilling. The well services will be done through existing subsea x-mas trees. Status: Contract awarded Aker Oilfield Services. Eight years, with options for 2 +2 +2 years. The value of the contract is 11 billion Norwegian kroner. Statoil has an option yet another B-rig from Aker.

CAT C:

Description: Ordinary drilling rig that can be used for all types of operations. Status: The rigs currently leased by Statoil in Norway.

CAT D:

CAT J:

Status: Songa Offshore has won four such units for a total value of 29 billion Norwegian kroner. The contracts have a length of eight years, but with options for a further 12 years. The rigs will be delivered in 2014 and 2015.

Status: Contracts for two Jack Ups will be awarded in the second half of 2012. The rigs will be delivered in the second half of 2015.

Description: Custom-built rig adapted to medium water depths on the Norwegian Shelf. For use in drilling, completion and well workovers, but can also be used for similar operations as Cat A and Cat B, but not optimised for this.

Description: Jack-up drilling rig with longer legs for deeper waters than customary for this type of rig. For use in drilling, completion and well workovers, but can also be used for similar operations as Cat A and Cat B, but not optimised for this.

RIG MARKET

Kristin Færøvik, Bergen Group

Expert group for improved rig capacity Members of the rig group: The expert group is headed by: The Ministry for Petroleum and Energy has appointed an expert group to identify obstacles that restrict the rig capacity on the Norwegian Continental Shelf. They will also suggest how to improve the flow of drilling rigs. Representatives from the resource and security authorities, employers and workers organizations, oil and drilling companies and analysts have been brought together to form this new expert group. Most of the drilling on the Norwegian Continental Shelf today is done from mobile vessels and the use is increasing. Lack of access to drilling capacity limits the ability to realize time-critical resources. - It is very important to implement all measures that can achieve time-critical resources and increase production on the Norwegian shelf. Good rig access is essential to achieve this, says the Minister of Petroleum and Energy Ola Borten Moe. The proposal for an expert group was launched in Report. St. 28 (2010-2011), an industry for the future - the petroleum industry. The report presents a policy to realize the petroleum potential of the Norwegian continental shelf. The work of the group should help to limit costs and increase profitability by drilling on the Norwegian shelf. - Drilling is important to realize the potential on the shelf. I have high expectations for the work of the expert group. New initiatives in this field can have a significant impact on revenue to the community. The expert group is composed of highly competent individuals who have both extensive knowledge and experience about this topic, says Ola Borten Moe.

Eivind Reiten, former Minister of Petroleum and Energy.

Other members: • • • • • • • • • • •

Magne Ognedal, Petroleum Safety Authority Norway Bente Nyland, Norwegian Petroleum Directorate Frode Alfheim, Industri Energi Gro Brækken, Norwegian Oil Industry Association Jon Jacobsen, Statoil Tore Holm, Norske Shell Dag Omre, Centrica Norge Jakob Korsgaard, Maersk Drilling Wenche Nistad, the Norwegian Guarantee Institute for Export Credit Mimi Berdal, attorney Kristin Færøvik, Bergen Group - Image above

RIG MARKET

Transocean Searcher (Transocean) 19.12.2003 West Venture 30.1.2004 Polar Pioneer (Transocean) 6.5.2004 Ocean Vanguard (Diamond Offshore Drilling) 2.7.2004

AoC on the NCS

Transocean Arctic (Transocean) 20.7.2004 Eirik Raude (Ocean Rig) 15.9.2004 Borgland Dolphin (Dolphin) 30.9.2004

Every rig in operating offshore Norway needs an Acknowledgement of Compliance (AoC). This is given from the Petroleum Safety Authority in Norway. The AoC expresses the authorities' confidence that petroleum activities can be carried out using the facility within the framework of the regulations.

Mandatory

Bideford Dolphin (Dolphin) 30.9.2004 Transocean Leader (Transocean) 16.12.2004 Transocean Winner (Transocean) 4.8.2006 Island Frontier (Island Offshore) 31.10.2006 Safe Scandinavia (Prosafe) 13.4.2007

The decision is based on information provided in the AoC application relating to the facility's technical condition and the applicant's organisation and management system, as well as the authorities' verifications and other processing. An AoC in itself confers no right to conduct petroleum activities on the Norwegian continental shelf (NCS). Securing an AoC is essential, however, if a mobile facility registered in a national register of shipping, is to work on petroleum activities, and it is mandatory for the following facilities:

Bredford Dolphin (Dolphin) 28.6.2007

Drilling facilities

Leiv Eiriksson (Ocean Rig) 11.7.2008

Mærsk Inspirer FPDSO (Maersk) 25.1.2008 Petrojarl 1 (Teekay) 30.4.2008 Petrojarl Varg (Teekay) 30.4.2008 West Phoenix (Seadrill) 13.6.2008 Island Wellserver (Island Offshore) 3.4.2009

•

Living quarters facilities

•

Facilities for production, storage and offloading

•

Facilities for drilling, production, storage and offloading

Songa Delta (Odfjell) 5.6.2009

•

Intervention vessels which are to conduct petroleum activities

Deepsea Atlantic (Odfjell) 8.7.2009

An AoC encompasses technical matters, relevant parts of the applicant's management system, analyses performed, maintenance programmes and upgrading plans.

Songa Dee (Songa) 5.6.2009 Songa Trym (Odfjell) 5.6.2009

Transocean Barents (Transocean) 10.7.2009 Transocean Spitsbergen (Transocean) 10.7.2009 Regalia (Prosafe) 10.7.2009 Rowan Gorilla VI (Rowan Drilling) 17.11.2009

These are the rigs with AoC on the NCS

COSLRival (COSL Drilling) 28.5.2010

West Navigator (Seadrill) 19.9.2000

Island Constructor (Island Offshore) 23.9.2010

Deepsea Bergen (Odfjell) 14.12.2001

Floatel Superior (Floatel International) 22.12.2010

West Alpha (Seadrill) 31.12.2001

COSL Rigmar (COSL Drilling) 31.3.2011

West Epsilon (Seadrill) 14.2.2002

COSL Pioneer (COSL Drilling) 17.6.2011

Mærsk Giant (Maersk) 15.2.2002

Maersk Reacher (Marsk) 15.7.2011

Stena Don (Stena) 19.3.2002

Haven (OSM) 26.7.2011

Mærsk Gallant (Maersk) 1.8.2002

West Elara (North Atlantic Norway Ltd) 13.12.2011

Mærsk Guardian (Maersk) 1.11.2002

Rowan Stavanger (Rowan Drilling Norway) 27.3.2012

Mærsk Innovator (Maersk) 7.5.2003

COSL Innovator (COSL Drilling Europe AS) 30.3.2012

Scarabeo 5 (Saipem) 16.5.2003

Scarabeo 8 (Saipem) 3.5.2012

RIG MARKET

Ronny Haufe , Project Director IRM CCB

Fighting for at least NOK 7,5 billion Newbuilds equal a rig boom for the yards.

Over NOK 100 million

The market for classification and maintenance of drilling rigs operating offshore is going to explode over the next few years. A large number of new rigs on the Norwegian Continental Shelf will single-handedly provide plenty of work.

The current fleet of rigs on the Norwegian Shelf creates a large market for yards trying to win these jobs. The value of the contracts naturally varies depending on the total work scope and how many providers are fighting for the job. But it is often at least NOK 100 million at stake.

Regular surveys

Anual planned SPS

Rigs operating in Norway must go through a main classification, called Special Periodic Survey (SPS) every five years. The scope of work is comprehensive and often implies that the rig will remain in a yard for between 45 and 60 days. And when the first rig is at quay, it is also common that the rig companies are trying to implement a number of additional jobs, which cannot be done offshore.

12 8

Major awards this year We have prepared an overview of this market based on the current rig fleet. It shows that in 2012, four rigs should go through SPS. One of these is a Jack Up rig from Maersk. SPS for the Jack Ups are conducted offshore and it is not normally something the yards are fighting for. But SPS for the other three rigs this year are attractive jobs. Two of these have been awarded to CCB this applies to the Bredford Dolphin and the Songa Trym. The last rig is the Transocean Leader, which has been awarded to Semco Maritime for a yard stay at Bergen Group HanĂ¸ytangen, AskĂ¸y.

Low activity next year

In the years ahead, our figures show that with the existing rigs working in Norway now, it will be relatively quiet next year (2013) - before the show really begins. But this is just the beginning of the adventure.

Many new rigs coming soon

2012

2013

2014

2015

2016

Today a total of 16 rigs are in order, under construction or on the way to Norway. It creates a queue of rigs that will enter the yards coming years. By adding these new units to our statistics, 2019 will be all time high for yards in Norway. Rigs delivered now, and until 2015, will have to be classed every five years after delivery.

RIG MARKET

Malvin Eide , Manager Rig Repairs Westcon

RIG MARKET

Archer will continue to drill for Statoil on the Statfjord A, B and C installations

NOK 30 billion of drilling contracts In May, Statoil awarded contracts for drilling services on as many as 18 fixed installations in Norway. The total contract values is NOK 30 billion, including options. Archer, KCA Deutag, and Odfjell Drilling have all won major awards after a huge tendering exercise offering new drilling services contracts at 18 out of 20 of Statoil's major offshore installations. These were the biggest contracts awarded by Statoil on the Norwegian Continental Shelf in two years since 2010, the operator declared.

Up to ten years Together Archer, KCA Deutag and Odfjell will be responsible for drilling new wells, plugging old wells, plus executing workover and maintenance programmes on drilling facilities. Each contract is for up to ten years, comprising four firm years, plus options for three extensions of two-years. "Efficient drilling and well services on existing fields are important to maintain production on the NCS and to deliver according to Statoil’s production forecast of 2.5 million barrels of oil equivalent per day in 2020," says Margareth Øvrum, executive vice president for the Technology, Projects and Drilling business area. The work in these contracts will employ around 2.000 people during the period. This contract provides a long-term perspective on drilling services for both Statoil and the supplier industry going forward. "The suppliers we have chosen have over time demonstrated a will and ability to meet Statoil’s strict requirements for health, safety and environment," said Statoil's Øystein Arvid Håland, senior vice president for drilling and wells.

RIG MARKET

Statoil awarded KCA Deutag the platform drilling contract on Oseberg C

"Have cemented our position" To KCA Deutag the revenue for the initial contract period is NOK 4,1 billion, excluding possible options. - These awards recognise our efforts to deliver continuous improvement and value for Statoil. Our vision is to be the preferred drilling contractor through measurable performance improvement and providing safe effective and trouble-free operations. I believe that through these awards we have cemented our position in the North Sea, Rune Lorentzen, the KCA Deutag Senior Vice President for Platforms commented. Paul Horne, KCA Deutag’s country manager for Norway, added: - I look upon this award as a vote of confidence and an acknowledgement of the success of our previous drilling services provision for Statoil.

The winner is Odfjell Drilling This was the contract situation before the huge award:

KCA Deutag: Brage, Oseberg B, Oseberg C, Oseberg Sør, Oseberg Øst, Njord Odfjell Drilling: Grane, Heidrun, Sleipner A, Snorre A, Snorre B, Visund Archer: Gullfaks A, Gullfaks B, Gullfaks C, Statfjord A, Statfjord B, Statfjord C The new picture is:

KCA Deutag: Gullfaks A, B, C – Oseberg B, C, Sør & Øst Odfjell drilling: Snorre A, B - Sleipner A – Heidrun – Njord - Visund - Grane - Brage Archer: Statfjord A, B & C

Summed up; Odfjell Drilling added Njord and Brage to their contracts. KCA Deutag lost two (Njord and Brage), but won Gullfaks A, B and C. Archer was the big looser this time. They lost three, all Gullfaks, and kept the Statfjord contracts. Half the market For Odfjell Drilling the win has an estimated annual value of NOK 1 to 1.5 billion. In total this could end at NOK15 million - half the market. - The contract is based on our innovative operating model for the performance of drilling services on fixed installations. It increases the scope of Odfjell Drilling’s work on Statoil’s installations and secures long-term assignments that are crucial in relation to developing our offshore and onshore organisation in Norway, says CEO Simen Lieungh.

Losing half - remains optimistic Archer lost three of their six installations but the company remains optimistic about the future and says the new deal underlines the good relationship it enjoys with Norway’s dominant oil company. - We have been working with Statoil for more than 30 years and have been the contractor on Statfjord since it started operating in 1984. We are pleased to continue our good long-term relationship with Statoil and our flexible business model will allow us to adapt effectively to the awarded scope of work. Archer remains a market leader for platform drilling services in the North Sea and we remain confident in our ability to continue providing safe and cost effective operations to all our North Sea clients. We view the North Sea as a highly attractive market place and continue to invest in higher value added services to expand our North Sea business, says Kjetil Bjørnson, President & General Manager North Sea Region.

RIG MARKET

Increased need for NCS beds High activity for the accommodation units. Globally, the market for floating accommodation rigs is divided into three geographical areas - the Gulf of Mexico, Brazil and the North Sea. The first two are characterised by long-term contracts and stable day rates while the North Sea market has been much more project driven, historically.

Winter work Globally, there are twenty-three offshore accommodation units and six of these are operating in the North Sea. In addition to these six, two new rigs are under construction. "In the next few years the focus on field development and modifications in the North Sea will be given high priority. We expect not only solid day rates, but also higher project activity in the winter. This means that the accommodation rigs will earn dayrate for longer parts of the year," says rig analyst Bjørn Thoresen at Swedbank First Securities.

Building for Norwegian market One of the players in this market, Prosafe, owns one of the forthcoming newbuilds in the offshore accommodation market. They have entered into a turnkey contract for the construction of a semi-submersible accommodation rig at Jurong Shipyard Pte Ltd. in Singapore. The new unit will be the most advanced and efficient harsh environment accommodation rig in the world and will be constructed to comply with Norwegian regulations, Prosafe says. The rig will be constructed according to a GVA 3000E design and will be equipped with a DP3 (dynamic positioning) system as well as a 12 point mooring arrangement. This will allow for operations in harsh environments both in DP and anchored mode, providing maximum cost efficiency and flexibility. The unit will have the capacity to accommodate 450 personnel in single cabins.

Long-term demand Delivery from the yard is scheduled for the second quarter of 2014 and all-in cost including yard cost, owner-furnished equipment, project management and financing is estimated at USD 350 million. "The new rig is ordered on the back of a positive market outlook. The majority of production installations in the North Sea are in a mature stage. At the same time, many of the larger fields are expected to continue producing well beyond the initial estimated depletion date," Prosafe says. This development is supportive for the long-term demand for assets and services related to maintenance, modifications and redevelopments. Furthermore, the recent large discoveries in Norway, combined with continued high exploration effort, indicate strong demand related to hook-up and commissioning activities, the company adds. These are the units currently operating/under construction in the North Sea:

COSLRival

•

MSV Regalia

•

Floatel Superior

•

Safe Scandinavia

•

Borgholm Dolphin

•

Safe Caledonia

•

COSLReval

•

Floatel Victory (under construction)

•

Safe Boreas (under construction)

Your Future Supply Base demands a lot of past experience! Logistics and Harbour • Field support • Material management and cargo handling • 800 mtrs of deep water quays 20-50 mtrs l/t • Loading/offloading of vessels • Coastal transport

Yard Services • Inspection • Repair • Maintenance of Rigs and Vessels

Technical Services • Workshop and technical subsea service • Maintenance, Mob/Demob of subsea equipment • Pressure test, both hydrostatic- and gas (Ni) • LNG, fuel and bulk handling

Property Services Lease of : • Offices • Workshops • Oudoor storage areas • Bulk areas and facilities

P.O.Box 55 N-5347 Kystbasen Ågotnes

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

Efficient rig repairs and modifications with no time wasted

The Westcon yard has deep water quays, high payload cranes and a state of the art machinery park to fulfill our clients’ needs. The workforce is highly skilled and dedicated to ensure that yard stays are as efficient as possible, resulting in over ninety rig projects since 1995. The rig projects performed range from the upgrade of older rigs to meet today’s advanced technical requirements to the modification and completion of new rigs with sophisticated systems to suit their working situation. Complicated challenges such as the removal of a derrick top have been performed at the yard, with reinstatement of the derrick being performed on location. Customers enjoy the benefits of complete package solutions, including engineering, electrical, automation, mechanical, steel and piping disciplines. Engineering services are available near many clients’ offices/branches in Stavanger, or from the Westcon yard. Experienced offshore personnel are available for the performance of work offshore or on location.

Visit us on stand B 2107

Rig repairs • • • •

Classification Upgrading Modification Conversions

Ship repairs • • • •

General ship repairs Dry docking Classification Conversions

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

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

WEST VENTURE

WEST EPSILON

STENA SPEY

SCARABEO 8

LEIV ERIKSSON

OKTAN Stord — Photo: Westcon, Espen Mills

WESTCON YARD

04/

Field development

Building for the next 40 years

field development

Field development on the Norwegian Continental Shelf Commodities Services Production drilling Field development (in total)

NOK 19,5 45-55 wells prbillion year NOK 17,5 45-55 wells prbillion year NOKwells 14 45-55 billion pr year NOKwells 51 45-55 prbillion year

Annual investments 2012

Sources: Offshore.no, The National Petroleum Directorate, OED, Rystad Energy, the operators, Statistics Norway. Illustration offshore.no.

Potential PDOs 2012-2013 Hild (Total), BĂ¸yla (Marathon), Svalin (Statoil)

North Sea

45-55 Norwegian wells prSea year

Draupne (Det norske), Dagny (Statoil), Bream (BG) Krabbe (Lundin), Flyndre (Maersk), Hod Redevelop.(BP)

Aasta Hansteen (Statoil) Linnorm (Shell)

Development forcast - 2018 Floater PDOs submitted or approved

Platform PDOs submitted or approved

Goliat (Eni)

Knarr(BG) Valemon (Statoil) Hild (Total) Gudrun (Statoil) Grieg (Lundin) Eldfisk2 (ConocoPhillips)

Potential floater developments Aasta Hansteen (Statoil) Bream (BG), Beta (Suncor) SnĂ¸hvit (Statoil) Skrugard (Statoil) Frigg Gamma Delta (Centrica) Skarfjell (Wintershall)

Ekofisk South (ConocoPhillips) Ekofisk 2/4 L (ConocoPhillips)

Potential platform developments Hod (BP) Draupne (Det norske) Dagny (Statoil) Johan Sverdrup (Statoil/Lundin) Snorre WHP (Statoil)

field development

The Gudrun jacket was built in Verdal

Building for the next 40 years As many as 14 platforms and 9 floaters could take the NS into a new era. The stage is set for a development boom unparalleled in the NCS history if the oil companies are able to implement most of their planned development projects streching towards 2020. In total we could be talking about 20-25 stand alone developments and 60-70 subsea tie-ins. Plans for developments of Gudrun, Valemon, Hild, Grieg, and Ekofisk South and Eldfisk 2 have already been submitted. In addition, Draupne is expected during 2012, and Statoil is also approaching a decision on Aasta Hansteen. Redeveloping the old giants can also provide several platform new builds, possibly on Snorre and Gullfaks. And Johan Sverdrup, planned to be developed in phases, could end up as a three platforms project. And more. Rystad Energy´s calculations indicates annual field development projects representing one billion barrels in the period up to 2020. The average cost for ongoing field developments are, according to Rystad, 16 dollars per barrel ($13 for tie-ins, $15 for FPSOs / semis and $20 for platforms). "With an average price of $17 per barrel, are we talking about investments of around NOK 95 billion per year. This comes on top of the investment and operating costs, which this year is NOK 220 billion. The offshore market will peak at NOK 340 billion in 2016. (Investment plus operating costs minus the internal costs for oil companies)", says Rystad.

Developing the giants Naturally, Statoil will be playing a key role. The construction of Gudrun and Valemon is already underway and more projects will follow. Among these are Dagny and the two new diamonds, Johan Sverdrup and Skrugard, both scheduled for first oil in 2018. The licensees of the Johan Sverdrup discovery will select a development concept in the fourth quarter of 2013, and aim to start production in the last three months of 2018. As for Skrugard, Statoil has established a plan for further exploration drilling in the area. The exploration campaign will comprise four new prospects and it is scheduled to commence late 2012. The objective is to follow up on the Skrugard and Havis discoveries and to test further upside potential in this area of the Barents Sea. “We are very satisfied with our recent exploration achievements in the Barents Sea. In less than a year, we have made two substantial oil discoveries in PL532, proving 400-600 million barrels of recoverable oil. We have also drilled a successful appraisal well on Skrugard confirming volume estimates and collecting data for field development planning,” says Knut Harald Nygård, Statoil vice president for exploration in the Skrugard area.

field development

Jarand Rystad expects investments on the Norwegian Shelf to peak at NOK 340 billion in 2016

"Don´t forget the mature fields" Managing director Kjell Pedersen at Petoro notes that 2011 in many ways involved a breakthrough for the kind of thinking about Norway’s large mature fields which is reflected in Petoro’s strategy. He has found that Statoil, the dominant operator of such fields on the NCS, is also expressing itself more clearly and aggressively in its work with and comments on increased recovery and mature fields. The government’s petroleum White Paper also provided a strong and clear pointers in that respect. "We must nevertheless be careful not to think that we’ve cracked the code for the mature fields, and that everything is running smoothly", he says. He points out that roughly threequarters of the increase in SDFI reserves in 2011 reflected the decision to invest in gas compression on Troll and Åsgard.

From exploration to production Lundin has secured a solid position on the Norwegian shelf. First and foremost, through back to back exploration successes, but now it is also time to develop significant discoveries as Edvard Grieg and Johan Sverdrup, among others. "We are entering a new phase for the company. We started with eight people and a dog, and we will be 168 at the end of 2012 and 300 when the Grieg field goes into production in a few years time," says Chief Operating Officer Erik Jenssen in Lundin. Grieg alone will represent investment of NOK 24.2 billion.

Redeveloping the core areas BP has spent the last few years redeveloping the company´s key areas on the Norwegian continental shelf. And the investment will continue. "Our activity is concentrated around the Skarv, Ula and Valhall. We plan between 100 and 200 new wells in the Valhall area, and will also build new platforms Hod and the western flank", says Sigmund Prestegaard, business manager for Valhall.

Investing in the Norwegian Sea Shell has experienced disappointment after disappointment in the Norwegian Sea in recent years. Drilling prospects Dalsnuten and Gro has failed to deliver, and, the company has also seen reserve estimates at Ormen Lange slashed by 25 per cent. The company is unlikely to drill many exploration wells in the Norwegian Sea in the next few years, but rather concentrate on the Ormen Lange field and the possible development of Linnorm and associated modifications at the Draugen platform. These three projects will provide investment of 70 billion. The pilot for subsea compression on Ormen Lange is currently being tested in Nyhamna, while the investment decision will probably come at the end of next year, with a possible "first gas" from 2016 to 2017.

"These are also gratifying and sensible decisions, and will boost gas sales over time. But they don’t represent a breakthrough for the substantially bigger challenge of increasing oil recovery from the mature fields. Less than 20 per cent of our reserve addition in 2011 was attributable to the latter." "Our figures unfortunately show that we’re rather heading in the wrong direction with regard to drilling production wells – one of the most important measures for improved oil recovery. So our proposal to build wellhead platforms in order to drill more wells faster is therefore just as relevant. If the reserves in the mature fields are recovered and the new discoveries developed, we will, for a long time to come, remain the biggest contributor through the SDFI to the government pension fund – globally, apart from after tax revenues from the NCS."

field development

An overview of future fields

Fixed platforms Gudrun - old lady with secrets Discovered in 1974, Gudrun has had to wait for 40 years before being converted from find to producing field. “We’ve take a long time to understand this reservoir, which is complex and demanding,” explains Jan Einar Malmin, Statoil’s venture manager for the field. With high pressure and temperature, the formation still hides secrets. The plan for development and operation (PDO) estimates recoverable reserves at 132 million barrels of oil equivalent – but this figure is by no means set in stone. Systematic work will be needed to reach it, says Malmin. “The gap between the highest and lowest forecast is unusually wide in Gudrun’s case.” New technology, greater knowledge of the area and re-use of existing offshore infrastructure have finally made it possible for Statoil and partner GDF Suez to develop the field. It is due to come on stream in the first quarter of 2014. Gudrun is to be developed with a platform resting on the seabed including a traditional steel jacket weighing 7400 tonnes. The platform will have a processing facility for partial processing of oil and gas, before the hydrocarbons are piped to the Sleipner field. Investments will amount to some NOK 20 billion.

Valemon - copying the old lady The Valemon field is one of Statoil’s largest development projects on the Norwegian continental shelf (NCS) in the next few years. The recoverable reserves are estimated at 206 million barrels of oil equivalents – including 26 billion cubic metres of gas, five million cubic metres of condensate and one million cubic metres of natural gas liquids (NGL). The partners will invest almost NOK 20 billion in the platform, pipelines and production wells. Development of Valemon involves a fixed platform with a steel jacket for the separation of gas, condensate and water. The normally unmanned platform will be remotely controlled from the Kvitebjørn platform when drilling operations are completed in 2016/17. Gas from Valemon will be transported via the existing pipeline from Huldra to Heimdal, a hub which enables the gas to be exported to European markets. A great number of the solutions chosen for Valemon are copies from the Gudrun project. At peak, Valemon is expected to produce approximately three billion cubic metres of gas annually.

Ekofisk 2/4 L - 552 cabins and a field centre Ekofisk 2/4 L - with it´s NOK 10 billion price tag - is not just a living quarters platform, but also a new field center in the Greater Ekofisk Area. The platform will be connected to the existing Ekofisk Complex via a bridge. In addition to 552 cabins, the platform will have a number of field center functions such as heli-deck and hangars, 75 office workspaces and a number of auxiliary systems such as fire water and freshwater supply. The two bridges and bridge top being constructed at SMOE will be installed on Ekofisk in 2012 at the same time as the jacket and bridge support constructed in Verdal. The topside is scheduled to be lifted in place on Ekofisk in the 2013 summer season. Investments

field development

Grieg - a giant from Lundin

Ekofisk South - increasing the recovery rate

Grieg - orchestrating the breakthrough

Ekofisk South entails building a new wellhead platform, 2/4 Z, and a seabed facility for water injection. The Ekofisk 2/4 Z platform will have slots for 36 production wells, while eight water injection wells will go from the seabed facility. Ekofisk South is expected to increase the recovery rate from the Ekofisk field from 49.5 to 52 percent (25-35 million Sm3) and represents total partner investments of 25-30 billion Norwegian kroner. The new platform will be connected to the Ekofisk Complex by a bridge. The timeframe for Ekofisk South is production start-up late in 2013.

Lundin is the operator for the first development on the Utsira High. This breakthrough discovery laid the grounds for finding the the elephant Johan Sverdrup in the same area, but will nevertheless be a stand alone project when developed. Total recoverable reserves in the discovery have been estimated at 29.1 million cubic metres of oil equivalents. The total investment will amount to approx. NOK 24 billion. Production is scheduled to start in 2015. “Luno” lies in the central section of the North Sea, 180 kilometres west of Stavanger.

Eldfisk 2 - 40 new wells Eldfisk II comprises a new integrated platform (wellhead, process and living quarters), Eldfisk 2/7 S, connected to the existing Eldfisk Complex. 40 new wells for production and water injection from the platform are planned. The new platform will also enable continued use of existing platforms on the Eldfisk and Embla fields and two new wells will be drilled from the existing 2/7 A platform. Eldfisk II is expected to increase the recovery rate from the Eldfisk field from 22 to 28.5 percent (35-45 million Sm3) and represents total partner investments of 35-40 billion Norwegian kroner. Eldfisk II is planned to be in production in 2015.

Hod - 12 billion replacement The recommended development concept is a new wellhead platform. The platform will be unmanned and set up about 2 km northeast of the existing Hod platform. The new platform will be a steel jacket with 4 legs and a total of 25 slots (5x5). It is planned hope to add a new 8 "gas pipeline from the Valhall for gas lift on inspections Hod, and a new 10" water injection pipeline from Valhall. There will be a new 12 " production pipeline from Hod to Valhalla, as well as cables for power and fiber optic control. The new platform's expected lifetime is 30-40 years. The total investment cost is estimated to be NOK 12 billion. The estimate includes costs related to the platform, pipelines, drilling and modifications based on inspections host platform. The existing wellhead platform on Hod is scheduled to judge removed by it has gone five years after production, in the period 2016-2018.

The licensees are planning to develop the discovery with a platform for production and processing of oil and gas. The plan is to transport the oil in pipelines via Grane to the Sture terminal in Hordaland County. The gas will either be sent to Sleipner or exported via the British pipeline system. The” Luno” facility will pave the way for a coordinated development with “Draupne”, most likely the next development on the Utsira High. Other discoveries in the area may eventually be phased in to the facility. The licensees have proposed Grieg as the new name for “Luno”. The Ministry of Petroleum and Energy will, in consultation with the established name group, decide on the final name.

field development

Draupne - playing the Grieg tune Together with the partners in the Draupne field, Det norske oljeselskap has reached an agreement with the partners in the Luno field on a coordinated development solution for the area. Draupne will be developed using a fixed platform with pre-processing. The well stream will be transported from the Draupne platform to Luno for final processing and export to the markets. Coordinated development means that Draupne will be dependent on Luno carrying out the processing for the field. At the same time, however, the coordination will reduce the plant on the Draupne platform to around 12,000 tonnes (topside only), with a crew of around 20. The pre-feed work is now under way in cooperation with Aker Solutions in London. The goal is that the plan for development and operation (PDO) for Draupne will be submitted in the fourth quarter this year. A contract has already been signed with Mærsk for a new jack-up drilling rig that will drill the production and injection wells on Draupne.

Hild - remotely controlled The Norwegian Petroleum Directorate has received the plan for development and operation (PDO) for the oil and gas discovery 30/7-6 Hild in the North Sea. Total is the operator for the development. Total recoverable reserves in the discovery are estimated at 29 million cubic metres of recoverable oil equivalents. In total, NOK 25 billion will be invested in Hild. The licensees want to develop the discovery with an integrated wellhead, living quarters and production facility with a lifetime of 30 years. The facility will be able to be remotely controlled from land (Stavanger via cable from Kollsnes), and the facility is scheduled to receive power from land. Power from land will reduce CO2 emissions by approx. 200 000 – 250 000 tonnes annually, and by approx. 2 million tonnes during the lifetime of the field. The plan involves transporting the oil by pipeline to a contracted storage vessel, where the oil will be processed before being loaded onto shuttle tankers. The ship, which is planned to receive power from the production facility, can store up to 620 000 barrels of oil. The recovery strategy is to produce gas and condensate from Hild Øst and oil from Hild Olje first, without pressure support. Then, the oil reserves from the Frigg formation (Hild Sentral and Hild Vest) will be phased in and developed using gas lift. Hild is scheduled to start production in 2016.

Dagny - a 30 billion copy Statoil wants to copy as many solutions as possible from the Gudrun and Valemon projects when they develop the Dagny field in the North Sea. A fixed platform has been selected by Statoil and its partners for the Dagny oil and gas discovery, while the Eirin gas field is to be developed with a subsea solution. Estimated investment is NOK 25-30 billion for Dagny and Eirin combined (including rig chartering and drilling)

Gas from Dagny will be exported through a tie-back to the infrastructure on Sleipner East, while offshore loading into shuttle tankers is proposed for the oil. The seabed production installation on Eirin will be tied back to the planned Dagny platform. Originally a small gas discovery just north of the Sleipner fields, Dagny has been under assessment for development on a number of occasions since it was found in 1974. After oil and gas were proven in the neighbouring Dagny East (previously Ermintrude) structure in 2007, the landscape around the original find was reassessed. Further appraisal in 200811 established a connection between Dagny and Dagny East, and substantial oil resources under the whole structure.

Johan Sverdrup - three platform development? Rystad Energy predicts a three phased development of Statoil and Lundin´s giant in the North Sea. - Maybe three platforms over a six year period. We are talking about investments amounting to some NOK 30 billion for each. A development like that can be compared to what was done when Gullfaks and Oseberg were built. We think it is possible to develop this field with a cost lower than 10 dollars per barrel, partner Jarand Rystad tells Offshore.no. This could mean investments stretching up to NOK 100 billion.

Snorre A & B - new wellhead platforms? “We have concluded an extensive survey of the Snorre area. The volume potential is some 900 million barrels of oil equivalents. There’s enough oil for production on the Snorre field until 2040. The question is whether we should refurbish our existing platforms or build a new platform,” says Torstein Hole, senior vice president for Operations West, who points to new Snorre area studies conducted by Statoil. If the partnership decides on new builds, two wellhead platforms on Snorre A and Snorre B, might be the solutions. The level of activity on Snorre is high in order to secure the maximum utilisation of resources in coming years. The Snorre area is one of the priority areas for fast track-expansions in Statoil. Statoil and its partners on Snorre have also decided to invest NOK 1.8 billion in a new pipeline between Snorre A and Snorre B. The pipeline will enable Snorre A oil to be piped to Statfjord B for storage and export to the market from 2012 onwards.

field development

Goliat - the first oil producer in the Barents Sea

Floaters Goliat - First oil from the Barents Sea The first oil discovery to be developed in the Barents Sea with investments streching to NOK 30,2 billion. The operator, Eni Norge, plans to bring the field on stream in 2013, and Goliat is expected to produce for at least 15 years. The field is located 50 km southeast of the Snøhvit field and about 50 km from the coast. The selected FPSO concept consists of a circular facility containing a processing plant, oil storage capacity and accommodation facilities. Produced water will be re-injected into the reservoir. Produced oil will undergo interim storage on the facility prior to onward transport by shuttle tankers to the market. The reservoir drainage strategy will include water and gas injection employing a total of 8 well templates with 22 wells. Eleven of these will be producers, while nine will be used for water injection and two for gas injection. Several vessels will be on permanent station in the area close to the Goliat field. All vessels will be equipped with infra-red cameras and oil-detecting radar. Goliat will utilise power supplies from land via a subsea electric cable, combined with energy generated onboard the facility. Read more about the electrification of the Goliat field.

Aasta Hansteen - Norway´s first Spar Statoil, together with its Luva field partners, has selected a Spar platform to develop the NOK 34 billion Luva field. As a gas transport solution has also been decided, a major step has now been taken towards deep-water production in the Norwegian Sea. The Luva field, which is a deep-water pioneer in the Norwegian Sea, may be the first to have a Spar platform on the Norwegian continental shelf (NCS). The field is located outside of existing infrastructure and has a water depth of 1,300 metres. “This development may represent the start of deep-water production in the Norwegian Sea, and it will enable the tie-in of other discoveries in the same area”, says Ivar Aasheim, senior vice president for NCS field development in Statoil. The Luva field is planned for development with a Spar platform, which consists of a large-diameter, single vertical cylinder supporting a conventional deck with processing facility, accommodation quarters, etc. The installation is fixed to the seabed. The choice of concept is in line with the study presented in March 2011. It will be the first Spar on the NCS, and one of the largest of its kind worldwide.

field development

Bream - FPSO it is The North Sea Bream field, to be developed by BG, will likely take the form of a floating production and storage solution. The operator confirmed to Offshore. no that they are in a concept phase, which should be finalized in the summer of 2012. - The preliminary election is an existing FPSO, says project manager for Bream, Lars Dragon of BG to Offshore.no.

Snøhvit train 2 - pipe or more LNG? Statoil and its partners on the Snøhvit field have increased the reserves estimate by 20 billion standard cubic metres of gas. Production experience from the field has proven that it is possible to produce more gas from the reservoirs than previously assumed. The adjustment corresponds to an increase of 125 million barrels of oil equivalents in relation to the resource estimate that was prepared in the plan for development and operation (PDO), and is equal to about half of a Luva or Skrugard discovery. “I think it is very encouraging that, through work on the field, we can increase the resource estimate for Snøhvit. The increase is important for the potential development of our activity in the Barents Sea,” says Øivind Nilsen, production vice president for Hammerfest LNG. “We will continue the work with reserve development and hope that we can further increase the recoverable reserves in the field through measures for improved recovery (IOR) in the future.” The Snøhvit owners have started assessing whether and potentially how the total gas export from the Barents Sea can be increased. Such expansion will either take place through increased LNG production capacity or through an export pipeline. A decision regarding the concept for such an increase is planned for the second quarter of 2012. An investment decision for potential LNG capacity expansion is thus expected in 2013.

Knarr - 2,5 years from discovery to PDO The Knarr development, formerly known as Jordbær, is approved by the Norwegian Parliament. The northern North Sea field contains an estimated 70 million recoverable oil equivalents and will be developed with a FPSO tied to two templates. The process from discovery to PDO has been less than 2.5 years. Driftsfasen er antatt å vare mellom 6 og 20 år. Investeringene knyttet til Knarr er anslått til 6,3 mrd. kroner ved utbygging av Knarr sentral. Ved utbygging av både Knarr sentral og Knarr vest er investeringene anslått til 11,2 mrd. kroner. I tillegg kommer leiekostnader til flyteren, som over en seks årsperiode vil beløpe seg til mellom 5 og 6 mrd. kroner.

17/12-1 Bream was discovered in 1972 in production licence 016. The discovery is located at a water depth of about 110 metres in the southeastern part of the North Sea, approximately 50 kilometres northwest of the Yme field. The reservoir is in Middle Jurassic sandstones of the Sandnes Formation, at a depth of about 2 300 metres. The discovery was relinquished in 1994 and then awarded to production licence 407 in 2007. An appraisal well, 17/12-4, including two horizontal sidetracks, was drilled in 2009. Possible production start up is 2015/2016.

Beta - high pressure, high temperature Suncor, formerly Petro-Canada, made a significant discovery in the company´s first Norwegian exploration. Beta discovery, 15 kilometers northwest of Snorre, was delineated with success last year. The discovery is currently estimated to contain between 44 and 252 million barrels of oil equivalent and has delivered a production test of 10.000 barrels per day. The partnership is still unsure whether Beta is a commercial discovery. - We are planning a third well, and this will hopefully give us more knowledge. It is a challenging reservoir with high pressure and high temperature, said Turlough O'Riordan, CEO of Suncor Norway, during the conference operator NOC in Stavanger. - In addition, we are committed to collect seismic data in the area next year.

field development

Skrugard - Centre of opportunities Statoil and its partners are considering developing the Skrugard discovery in the Barents Sea by means of a floating production unit with the additional capacity to process and transport from other prospects in the area. A feasibility study has identified a technical and commercial solution for the Skrugard field in the Barents Sea. The solution involving a floating production unit will result in the rapid and cost-efficient development of the discovery. The production unit will have separate oil storage and offshore loading capability with a production capacity of 95,000 barrels of oil per day. The feasibility study means that the field will be developed with 14 oil producers on the seabed and pressure support provided via injection wells for water and gas. The discovery was made in April 2011, and volumes are estimated to be around 250 million barrels of recoverable oil equivalents, with a considerable upside potential. However, there are several prospects in the near vicinity and Statoil will now look into the possibility of including possible discoveries in a total development solution. “We are now entering a phase where we will set up the team that will continue working on Skrugard. We will improve our understanding of the resource basis, study several alternative development solutions and decide on the concept, as well as plan for operations with high health, safety and environmental standards,” says vice president for operations on the Skrugard development, Erik Strand Tellefsen. “We are drawing upon our own and our partners’ experience and the lessons learned on Goliat and on our fast-track developments. Skrugard will mainly be based on familiar technology, while making allowances for harsh weather regions. The project team will be located in Harstad, apart from the construction site section, which has been placed in Oslo.”

Possibility of new field centre Skrugard is situated outside the established infrastructure in what is considered to be a prospective area. With Skrugard, therefore, a new centre is being established in an important region in the northernmost region on the Norwegian continental shelf (NCS). “A possible solution is a field centre with processing and transport capacity, with the flexibility to phase in the prospects in the area. This is in line with Statoil’s ambition to develop the Barents Sea as a core area on the NCS,” explains Tellefsen.

field development

Frigg Gamma Delta - five becomes one? Statoil has initiated a coordination of several small discoveries in the same area as the Frigg Gamma Delta discovery in the North Sea. Five small discoveries, Frigg Gamma Delta, Rind, Krafla, Fulla and Frøy, can thus become one major development. But even if the initiative comes from Statoil, it is likely that Centrica is the architect behind. Both Frigg Gamma Delta, Fulla and Rind was part of the package the British company acquired by Statoil for NOK 9 billion this winter. - We are operator of the Frigg Gamma Delta and Fulla and are a partner on Rind, and our vision is a common development in the area, yes. We see that we must take an active role here, said Centrica´s Dag Omre to Offshore.no when the deal was made public in November. NPD supports the initiative and ask the various partnerships to evaluate interoperability with Frigg Gamma Delta as a field center. Frigg Gamma Delta is not on the NPD's list of anticipated development plans in 2012-2013. But the group's letter to the NPD, it is clear that one is eager to speed up the project. Because of the brief time remaining before the start technical studies, it will be working intensively to ascertain the technical concepts and combinations to be studied. In addition, it will be challenging commercial negotiations that must be addressed in parallel with the concept studies. PL442 therefore considers an agreement on cost sharing as a first step in the process, the NPD writes.

Sources: Offshore.no, NPD, OED, Rystad Energy, the operator´s websites.

Skarfjell - another area solution? Wintershall´s Skarfjell discovery seem to have speeded up several development plans in the area north of Troll. In a letter the NPD has sent to the operators Statoil, GDF Suez, Wintershall, RWE Dea and Eni, it emerges that the discussions on joint development of several discoveries already have commenced. Gjøa already processes oil from the Vega and Vega South, but GDF Suez still has free capasity on the platform. However, it would be natural that Wintershall considers the possibility of a second area solution based on their discoveries, Grosbeak and Skarfjell, which holds a total of between 110 and 355 million barrels. The Company believes that the latter has the potential to become a "hub" in the area, which could mean an independent development.

field development

A ker midsund AS As a leading supplier to its markets for almost 40 years, Aker Midsund has developed experience and in-depth knowledge through design and project management. We have an international reputation for excellence in design, on time delivery and high quality manufacturing of pressure vessels, process vessels and storage tanks to the oil and gas industry. We are also proud to be in the forefront in the industry when it comes to focus on HSE. Aker Midsund is a 100 % subsidiary company of Aker Solutions AS.

Ph o n e : + 47 7 1 2 7 0 1 0 0 FAX : + 47 7 1 2 7 0 1 0 1

ADdress: Industriveien 6 47 5 M i d s u n d , N o r w a y

post@mibas.no w w w. a k e r m i d s u n d . n o

Total Package Responsibility Aker Midsund offer market design, engineering, project management and manufacturing of a variety of vessels to the oil and gas market.

Customer Oriented Sales We are a sales organization with complementary technical knowhow with focus of offering customer adapted solutions meeting client’s specifications, on-time delivery and within agreed budget. Project Management and Engineering by in-house well qualified and enthusiastic engineers are always standby to meet new challenges and complex project specifications. Design and mechanical engineering services, performed by own in-house staff, through latest common known tools such as ANSYS for finite element analysis.

Wide Technical Experience By gaining competence over almost four decades, we maintain our position at the forefront of mechanical technology. This makes us able to offer economical and on-time quality services. Quality Assurance, Health, Safety and Environment

Quality products and services is a trademark. In Aker Midsund, quality means to deliver the agreed product or service at the right time, in accordance with project specific standards/co-

des and to agreed price. ISO 9001-2008 Certified Quality Assurance System has been implemented and approved since 1994. Aker Midsund is proud to be in the forefront in the industry when it comes to focus on HSE. This is also common with Aker Solutions core values of HSE and the goal of zero incidents. We say, JUST CARE™.

•

Onshore, Offshore and Subsea

•

Adapted solutions

•

Project management and documentation

•

Professional expertise and long experience

Certification We are certified with DNV within QA Management System NS-EN ISO 9001:2008 and Pressure Vessels 97/23/EEC Module H1. We are approved suppliers in the Achilles system – Id. 10807, and Sellicha – Id. 106053. This is and assurance to customer that our routines are implemented in our business.

References: Latest deliveries and contracts (2011, 2012 and 2013) •

Aker Solutions: Åsgard Subsea Project (Inlet Separators, CPDU Enclosures, Cooling Gas Scrubbers)

•

HHI/ENI: Goliat FPSO (Separators, Scrubbers, KO Drums, Coalescers and more)

•

Aibel: Gudrun Topside (Separators, Scrubbers)

•

Statoil: Ormen Lange Subsea Pilot

Contact Aker Midsund offer customer adapted solutions by meeting client’s specifications, on-time delivery and within agreed budget. During projects we aim to collaborate and maintain frequent contact with our customers to optimize the result. Please feel free to contact us if you find our product range and solutions interesting, and would like to learn more about us.

Our Services: •

Design, engineering and manufacturing of Separation equipment

field development

AS EO N AS Throughout the global market, slips and falls are a major concern for both employees and business managers. Injuries cause pain, lost workdays and costs for the company and the involved individuals. Since slips and falls account for 35% of all lost workdays, are the 2nd most common cause of death in the workplace and is the reason of 1 in every 6 accidents - this is a serious issue.

Ph o n e : + 47 4 5 51 4 5 51 FAX : + 47 69 3 6 0 4 7 1

ADdress: Knut Holsgt 5, 4 0 0 5 S t a v a n g e r, N o r w a y

EMAIL: mail@aseon.no w w w. a s e o n . n o

The risk of suffering from slip and fall related accidents can be greatly reduced by using ASEON anti slip products. By introducing a high-friction non-skid based surface with visual references, you will get a totally different scenario.

•

Setback/pipe racking pads

•

Aibel

•

Catwalk machine wear plates

•

Saipem

•

Step covers

•

ConocoPhillips

ASEON has 15 years of experience with anti slip products and are one of the leading suppliers in the eastern hemisphere. We have solutions for most problems thinkable, protecting surfaces such as drill floor area, steps, walkways, ladders and many more. Our possibility to make tailor made solutions with key features such as arctic de-icing pads, high glow option, wide range of colors, grits, dimensions and more - gives us the opportunity to adapt to any HSEQ or company guideline. ASEON can also conduct on and off –shore surveys world wide to measure and advice on how to best protect the clients various areas.

•

Walkway covers

•

COSL

•

Ladder rung covers

•

Dolphin Drilling

•

Cable covers

•

KCA Deutag

•

Custom products

•

Odfjell Drilling

•

KS Drilling

•

Seadrill

•

Statoil

It is all about making a safe and effective working environment.

•

Transocean

•

Ocean Rig

•

Maersk Drilling

•

Saudi Aramco

•

Aker Solutions

Products: •

Some of our clients:

Arctic pads for all areas (drill floor, walkways, steps etc.)

•

Drill floor pads

FROM CONCEPT TO COMPLETION...

...COUNT ON FUGRO Every day, our people, technology, resources and knowledge combine to support major oil and gas, renewable energy and marine projects from concept to completion. The complex positioning, survey, geophysical, geotechnical, metocean and environmental data that we acquire, process and interpret plays a major part in demonstrating the feasibility of new projects, supporting delivery solutions, and informing the construction, installation, operation and eventual decommissioning phases of projects. We make developments safer, more reliable and more profitable by delivering the intelligence and assurance you need - wherever and whenever you need it. Fugro - Local Support - Global Reach

Fugro Survey AS Tel: +47 55 34 94 00 www.fugro-survey.no

field development

It takes long experience to handle challenging conditions

Multiconsult has outstanding experience and expertise in relation to development projects in the Arctic region. We have experience from some of the most important projects ever carried out in the north.

Onshore Multiconsult has over the last 25 years been involved in the development of all the onshore oil and gas terminals and plants in Norway, including the LNG plant for the SnĂ¸hvit field and the gas receiving plant for the Ormen Lange field.

Offshore Multiconsult has a 40 years track record within development and engineering of offshore structures, comprising both fixed and floating structures, including the development of concrete platforms in the Sakhalin-I and Sakhalin-II development.

Research The Arctic climate poses unique challenges that push the boundaries of what is actually possible. Compared with other areas, experience in this region is limited, and new knowledge generated by research and development is crucial to the construction of reliable and safe structures.

The SnĂ¸hvit onshore facility is one of the most important reference projects for onshore facilities in cold climates with limited infrastructure and difficult access. Multiconsult was responsible for planning the complete infrastructure for this facility. This unique experience is important in the planning of the forthcoming development of the onshore facility for the Barents Sea.

Multiconsult and its partners offer design and engineering of concrete substructures and selected topside structures of steel and aluminium, in addition to marine foundation design worldwide. Multiconsult has been engaged in the design of all concrete platforms delivered by Kvaerner after 1990 based on own in-house design software.

multiconsult.no

Norwegian oil platforms and the people who work there have to function in one of the worlds harshest environments. As Norway’s leading producer of insulation GLAVA® has the expertise to make it work. This is how we are contributing to higher profits, safer working conditions and a balanced carbon footprint. GLAVA® is the leading Norwegian supplier of thermal, fire and sound insulation products across all domestic and commercial needs. CONTACT: Morten Eriksen, Key Account Manager Marine/offshore Tel: +47 913 46 353 – E-mail: morten.eriksen@glava.no

FOTO: ØYVIND HAGEN/STATOIL

INNOVATIVE TECHNOLOGY DEMANDS INNOVATIVE INSULATION

NĂĽ kaN alle vĂŚre oljeeksperter Detaljert oversikt over alle rigger, felt og prosjekter koblet opp mot leverandĂ¸rer og nyheter fra norsk sokkel. Nye tjenester: Regn om alle relevante enheter med Offshore.no sin nye Unit Converter. Flere tjenester lanseres i september.

05/

Subsea

Huge market growing 84%

S U B SEA

ÂŹA growing subsea technology market The term subsea has no single connotation. The global subsea hardware market was reported by Douglas-Westwood in their World Subsea Hardware Market Forecast 2012-2016 to be above NOK 200 billion (USD 35 million). This coincides with a 2010 UK survey which estimated the global market at approximately NOK 200 billion (GBP 18,9 billion). This survey split the subsea hardware market into the following segments:

Subsea Equipment & Technology Manufactured by Survey Participants Source: 2010 Subsea UK Business Activity Review

Wellheads and Xmas trees Controls (umbilicals and control systems) Process equipment (e.g, pumps, vales, pigs) Structures (e.g, pumps, manifilds, foundations)

Pipelines (e.g., pipes, joints, coatings, risers) Subsea cables and connectors

14%

Sensors and instrumentation - production Sensors and instrumentation - ROV, survey, etc. Mooring and turret systems/FPSO equipment LARS (e.g., winches, A-frames) Buoyancy and flotation Robotics (e.g., ROVs, AUVs, trenchers) Diving systems and equipment Other manufakturing

16% 16% 17%

8% 6%

22%

26% 23%

16% 14%

% of Companies with Manufacturing Activities

35%

Source: Offshore.no

Classification of subsea hardware categories and subsea services

S U B SEA

Wellheads Xmas trees

a. Subsea Production Hardware

Subsea control systems Manifolds & templates Subsea cables and connectors Moorings and turret systems Subsea pumping

b. Subsea Production Hardware

Subsea compression Subsea separation Subsea multiphase flow measurement

Umbilicals

c. Subsea Production Hardware Surf

Risers Flowlines Buoyancy and flotation

Subsea sensors, instrumentation and comm. services Subsea facilities/pipeline installation services

Subsea Services

ROV and diving services Subsea inspection, maintenance and repair (IMR) Subsea flow assurance services

S U B SEA

Topside-less developments In both Norway and UK, subsea has become one of the fastest growing industries. While the North Sea market has weighted in very heavily in previous years, the market is now growing exponentially outside of the North Sea, following the move of oil and gas discoveries into deeper waters in existing basins, opening of new basins (Brazil and East Africa) and the technology advances made in the subsea technology. The subsea technology started with single-well tie-backs and tie-back of satellite fields to topside platforms. We are now seeing full offshore subsea oil developments where there are only support vessels topside doing processing and storage, or subsea-to-beach gas developments (like Ormen Lange). The technological leaps are now moving the subsea industry in the direction of first stage processing of oil subsea as well as subsea gas compression, and the vision is topside-less oil and gas developments.

About to change The characteristics of a subsea well have been the wet environment as contrast to the dry environment in a topside well. This together with the limitation of the subsea support equipment has up to now been limiting the application of subsea wells, and the cumber-some access options has meant limited opportunities for workover on subsea wells.

All this is about to change In the SURF- and services segments, new

riser technologies that take the subsea developments deeper without having to have full-scale topside capabilities are currently being developed and deployed. This is done by introducing un-coupled risers supported by various buoyancy solutions with flexible couplings to the topside vessels. Companies at the forefront here is Subsea 7. This together with automated capabilities for sampling live production wells without changing the well flow and autonomous inspection vessels from companies like Subsea 7, DOF Subsea and Technip increase the seabed-to-surface capabilities significantly. The revenues have been rising for the companies involved in the period from 2007, but profits took a hit in 2011 in Subsea 7 while DOF Subsea almost doubled operating profit percentage. The numbers are not out for the previous Acergy company (now Subsea 7 Contracting)

â&#x20AC;&#x2DC;000 NOK

2011

2010

2009

2008

2007

Subsea 7 N.Avd Sum revenue Operating profit - %

2 147 873 1,03

2 750 039 3 591 372 10,64

14,47

2 689 787 2 721 753 9,5

9,49

Subsea 7 Contracting - Previous Acergy Sum revenue

1 968 795 3 583 256 3 385 637 3 314 280

Operating profit - %

â&#x20AC;&#x2DC;000 NOK

2011

18,30

13,21

13,58

9,22

2010

2009

2008

2007

DOF Subsea Sum revenue Operating profit - %

4 285 265 3 025 598 2 825 613 17,4

9,02

10,19

2 735 339 2 073 604 12,91

18,10

Technip Sum revenue Operating profit - %

3 198 066 2 546 722 3 348 451 2 706 786 1 910 685 4,02

15,93

15,07

21,84

7,20

S U B SEA

Other companies in the SURF- and services segment are smaller. Deepocean had for example revenues of 1,3 billion NOK in 2011 with an operating profit of only 2,81%. The Oceaneering Group had in comparison revenues of 1,8 billion NOK with an operating profit of 14,74%. As the numbers indicate, profitability varies significantly among the players.

The two subsea giants The Production and Processing Hardware are dominated by the companies FMC Kongsberg Subsea and Aker Subsea, a subsidiary of Aker Solutions. These companies are providing leading edge subsea solutions. These technologies include subsea processing, subsea gas compression, subsea well intervention and subsea production monitoring and measuring. Companies like Siemens, GE Oil & Gas and ABB Oil & Gas are working subsea power solutions, and together these solutions make for subsea installations that have the promise in them to be able to solve most issues at the seabed level.

S U B SEA

FMC is currently working on a new standardized tree for HPHT wells, while Aker Solutions has a contract with Statoil that can standardize the workover equipment being used, so that the workover equipment can work with any rig and can access any subsea structure in Statoilâ&#x20AC;&#x2122;s portfolio of fields. Improved and standardized equipment in these two areas are a definite necessity when it comes to improving subsea production solutions relative to topside solutions. Seabed-based power, flow assurance, separation and reinjection, compression and workover are key elements in a fully sustainable subsea solution of the future.

â&#x20AC;&#x2DC;000 NOK

2011

2010

2009

2008

2007

FMC K. Subsea Sum revenue

7 953 696 9 045 013

Operating profit - %

10,32

10,58

8 316 034 6 557 133 5,56

5,05

Aker Subsea Sum revenue

4 047 000 4 575 512 5 522 726 7 089 712 6 247 736

Operating profit - %

not public

-0,39

-3,68

5,28

6,77

The revenues have actually been quite stable when we the two major companies combined in the period from 2007. However, while profit in FMC has improved over the period, the profit of Aker Subsea has deteriorated over the same years. This is a problem for the competition as these two companies are very central to subsea developments all over the world.

S U B SEA

NOK three billion adding 22 billion barrels Gas compression on the Gullfaks South should be ready in three years. “This technological leap forward represents an important milestone in the efforts to improve recovery from this and other gas fields, according to Statoil.”

Facts - Gullfaks Souts gas •

The technical solution consists of two 5 megawatt wet gas compressors installed in a subsea template at 135-metre water depth. They will be tied-in to existing templates and pipeline systems 15 kilometres from Gullfaks C

•

Power and control modules will be integrated on the Gullfaks C platform

•

Framo Engineering has been awarded the contract for engineering, procurement and construction (EPC) of the compressor station, including topside power and control systems for Gullfaks C

•

Nexans has been awarded the EPC contract for the 16-kilometre power and control cable from Gullfaks C to the subsea compressor station

Two important fields The Gullfaks project is the second large subsea gas compression project planned by Statoil. In April this year the plan for development and operation for Åsgard subsea compression was approved by the Norwegian Parliament. In May, Statoil and partner Petoro agreed to apply subsea gas compression on the Gullfaks South field, as well. This technology is forecast to add 22 million barrels of oil equivalent to the production from the Gullfaks South Brent reservoir. The partners will invest some NOK three billion in the technology project which is scheduled to be completed in the autumn of 2015.

Central part “Innovation and technology development are essential to improved oil and gas recovery and extended life for the fields on the Norwegian Continental Shelf. The development of subsea compression and processing is a central part of Statoil’s technology strategy for long-term production growth, says Statoil’s executive vice president for Technology, Projects and Drilling, Margareth Øvrum.” Both the Gullfaks and Åsgard projects are scheduled to be completed in 2015. Statoil is also responsible for the technology qualification for Shell for a third project which has not yet been decided , the Ormen Lange pilot.

From 62 to 74 Around 2015 the natural pressure in the Brent reservoir on the Gullfaks South field will be reduced. In order to maintain plateau production. compression will therefore be required. “Subsea gas compression will have great effects for the Gullfaks field. Thanks to this technology combined with conventional low-pressure production in a later phase the recovery rate for gas from Gullfaks South Brent can be increased from 62 to 74 percent, says Jannicke Nilsson,” Statoil’s head of operations in the North Sea west region.

Framo Engineering has won the contract for design and construction on the Gullfaks subsea gas compression plant which is worth NOK 900 million.

S U B SEA

The first field in production by ENI Norge was the Marulk field

Norway - the subsea giant An increasing share of oil and gas production in Norway comes from subsea installations and more than 750 subsea trees are now installed on the Norwegian shelf. Twenty-six years has gone by since Statoil started production from its first subsea well in Norway. Today, subsea wells are dominating the fields. Not only by number - but as the technology driver to improve field recovery rates.

Largest in the world In total 753 subsea trees are installed in Norway and it is no surprise which field is the largest one. The Troll field is also the world's biggest subsea development with regards to the number of subsea wells. Last year, Aker Solutions reached a major milestone in delivering the 100th subsea tree to the Troll field. Troll is located in the northern part of the North Sea, approximately 65 kilometres west of Kollsnes, near Bergen in Norway.

First of its kind The Åsgard field in the Norwegian Sea is not only a huge subsea field. The subsea gas compression project will be realised in 2015 as the world’s first project of this kind, and the technology is one of our most important measures to deliver higher volumes from existing fields on the Norwegian shelf. “When the pressure in the reservoirs declines, the flows become unstable and the drive mechanism becomes too weak to transport the gas. With this innovative technology in place, the recovery rate and lifetime of several gas fields can be considerably increased, Statoil hopes.”Statoil has prioritised four technologies for its futures growth ambitions. To realise subsea compression by 2015 and complete a “subsea factory” by 2020, is one of these four. A subsea factory is like a surface process facility operated on the seabed. This makes it possible to utilise remote-controlled transport of hydrocarbons at any offshore facility.

Norway first - the world next “We have already taken the first technological steps. We have made the world’s first complete subsea solution for separation and injection of water and sand from the Tordis wellstream, and developed the first subsea facility for injection of raw seawater on Tyrihans. The next step on the path towards a subsea factory is to realise subsea gas compression on Åsgard and Gullfaks. Our efforts to verify subsea gas compression for the Åsgard field at the K-lab plant is paving the way for future seabed-to-land solutions, combined with subsea processing, Statoil says. ” And this in not only for use on the NCS, but the technologies will be exported to areas like Brazil and the Gulf of Mexico.

S U B SEA

Expecting 84 percent subsea growth The coming years are expected to be a golden age for the subsea players Both smaller and larger subsea related businesses are facing a huge upside in the next few years. According to figures from Rystad Energy the market will nearly double until 2015.

Divided in three

In billion USD

Rystad Energy divides the subsea market in three segments. The first segment is the SURF market. This is roughly installation of equipment such as subsea umbilicals, risers and flowlines. Segment number two is called Subsea Equipment, while the last part is the Subsea Services, which includes services in the IRM â&#x20AC;&#x201C; installation repair and maintenance market, and the provision of after-market services. Overall it is expected that the oil companies' purchases within these three areas will have a global growth from US $33 billion in 2011 to $61 billion in 2015.

35 22

19 9

2011

17 6

2012 2015

SURF Subsea Equipment Subsea Services

S U B SEA

Approaching 60 percent Over 53 percent of production in Norway today comes from subea fields. Reiso says this number will rise substantially in future years. He estimates that this figure will be 55 percent in 2015 and 58 percent by 2020. There will also be even more money invested in subsea developments compared with other types of development solutions. Subsea field investments will grow from $108 billion in 2012 to $169 billion in 2015. For all other types summed up, the corresponding figure is $131 billion in 2012 to $159 billion in 2015. Thus, subsea investments will pass other development solutions in this time period. - The suppliers have all good reasons to invest in new capacity, whether it is into vessels or production facilities. The way we see it, the subsea age has only begun, ends Reiso.

- It is expected a marked growth in all three segments, but the greatest relative growth will be seen in the development oriented segments SURF and Subsea Equipment. These segments are likely to grow between 60 and 70 percent. This is explained by a strong global development agenda going forward in deep water, while the operations related to the Subsea Services segment depends more on what has already been installed. We expect strong growth here as well, but more in the long term and not higher than the other two. This is how Erik Holm Reiso, partner at Rystad Energy, explains the market figures presented here.

Many upcoming start-ups Companies in the subsea market can expect a steep rise in the development of new subsea fields, or fields with floating production and subsea wells, in the next few years. The way Rystad Energy defines subsea fields we will see a total of 61 fields starting up in 2012. This increases to a total of 91 new fields in 2015. In Norway fields like Knarr, Stjerne, Skuld and Goliat will start producing. Internationally there are also great opportunities through CLOV and PSVM in Angola, Papa Terra and Lula Phase 1 in Brazil, and the Jack / St. Malo and Tubular Belles deepwater developments in the U.S. Gulf of Mexico. - All the major markets are experiencing strong growth ahead. We will see it in Norway, Angola, Mexico, Brazil and Australia. It is generally expected strong growth for the industry in the subsea deepwater segment in most regions and it is therefore to be expected that there will be many exciting opportunities around the world. Offshore E & P level of purchasing globally will increase from $348 to 465 billion over the period 2012-2015, which provides excellent export opportunities for Norwegian suppliers, says Reiso. This means the start up of hundreds of subsea christmas trees in the near future. Estimates shows that the number of new trees will increase from 375 in 2012 to 530 in 2015.

S U B SEA

Cameron

y re

Troll

18%

Åsgard

8,2%

Snorre

6,4%

Gullfaks sør

4,9%

Visund

4,4%

3,5%

er Ak

44,6%

FMC

19% Supliers of subsea trees

32% lut

io n

Field name

Total trees

Field name

Top 5 Fields

NCS subsea trees Ve cto

Total trees

Field name

Total trees

TROLL

135

SKULD

BRYNHILD

ÅSGARD

GJØA

ENOCH

SNORRE

SNØHVIT

LILLE-FRIGG

GULLFAKS SØR

OSEBERG SØR

OSELVAR

VISUND

OSEBERG

MIKKEL

VIGDIS

YME

VEGA

NORNE

EKOFISK

REV

STATFJORD NORD

GULLFAKS

SIGYN

HEIDRUN

SLEIPNER VEST

TRYM

ALVHEIM

TOMMELITEN GAMMA

VILJE

SKARV

KNARR

MARULK

DRAUGEN

JETTE

SKIRNE

ORMEN LANGE

NORDØST FRIGG

VEGA SØR

BALDER

MORVIN

GAUPE

NJORD

TUNE

ALVE

KRISTIN

FRIGG

YTTERGRYTA

FRAM

BØYLA

MIME

TYRIHANS

VOLUND

VALE

TORDIS

VISUND SØR

S U B SEA

marwin Marwin Group currently employs 60 skilled workers and have specialised in design, development and production of constructions for both on- and offshore based industry. We are also a full-range supplier of lifting equipment and among our focus areas are subsea lifting and heavy lifting. We supply goods and services to some of the largest Clients in the oil business.

Ph o n e : + 4 7 3 5 9 8 3 3 0 5 FAX : + 4 7 3 5 9 8 3 6 7 0

ADdress: Industriveien 4 3 76 6 S a n n i d a l , N o r w a y

E M AIL : p o s t @ m a r w i n . a s w w w. m a r w i n . a s

Marwin Vest Marwin Vest, based in Stavanger, has specialised in heavy lifting and has also developed and supplied ROV shackles for a constantly growing marked. We are Norwegian Agent for SlingMax Rigging Solutions and official supplier of known brands such as FRAM, Hamas, Green Pin and GN Ropefittings and deliver complete rigging packages to the some of the largest oil and gas companies. Through our partners we have the ability to offer various rental equipment such as large lifting equipment, buoyancy and winches. Also for towing and mooring Marwin Vest has secured a partnership which allows for supply of both services and goods needed.

Twin Path One of the featured products from Marwin Vest is the Twin-Path Extra fibre sling from SlingMax. The Twin-Path combines extreme break strength with low weight and has already been used for several lifting operations and installations in Norway with weight reaching 400T. Twin-Path is a long existing product which has now been introduced in to the Norwegian marked by Marwin Vest. Its first appearance in to the offshore business in 1996 and has since been a huge success world wide. The load bearing fibre of Twin-Path, K-Spec®, has been extensively tested and have i.a. a very good, documented, resistance towards

most common petroleum products and we can guarantee no decrease in MBL after 2 years in sea water. When the temperature drops below 0 deg centigrade the MBL in fact increases with up to 30%. Other features of the Twin-Path fibre slings are built safety barriers such as overload indicator and fibre optic, and no required minimum bending diameter. Only requirement is that the object which the TP is hooked/connected to is of equal or higher strength.

Marwin Løfteteknikk Marwin Løfteteknikk shares premises with Marwin Mekaniske in Sannidal and in addition to supplying lifting equipment also has control engineers operating on sight with Clients performing inspections, certifications and various service work. Marwin Løfteteknikk also has a horizontal working test rig with capacity of 400T. Even if the rig first and foremost is designed for load testing of spreaders, frames and beams it will also facilitate load testing of equipment such as shackles and slings.

Marwin Mekaniske Marwin Mekaniske have specialised in design, development and production of welded, machined and surface treated constructions and templates for both off- and onshore based industry. With large manufacturing facility and a set of very

skilled workers we act as a turnkey supplier, providing full range of services from strength calculations via completion to testing. Marwin Mekaniske has of course the ISO-9001:2008 certification.

FMC Technologies’ subsea solutions and experience are leading the way in all-subsea arctic development. And that makes life easier when you’re working offshore in a sea that’s ice-covered up to seven months of the year. Our total solutions include proven subsea processing and pumping, long distance tie-backs and clean, all-electric control systems with robust condition monitoring and flow manager systems. Don’t let the ice freeze you out of the arctic. Talk to us instead.

We put you first. And keep you ahead. www.fmctechnologies.com

Schilling Robotics’ HDTM ROV

sets new remote intervention standards with 1-hour maintenance, industry-leading stability and position control accuracy.

Expanding our business With the acquisitions of NCA, AGR Field Operations and Mechanica, we are able to offer a broader range of our unique combination of services and technologies onshore and offshore, both topside and subsea.

ROV Operations

Deepwater Technical Solutions

NCA

J책tt책v책gen, Hinna - P.O.Box 8024 - 4068 Stavanger, Norway Phone: +47 51 82 51 00 - www.oceaneering.no

Asset Integrity

Rotator Valves

Umbilical Solutions

06/

Onshore bases

The future spells expansion

onshore bases

Terminal velocity: Onshore plants provide for Norway's future output Norway's onshore terminals make the connection between the value of the country's offshore resources and the oil and gas markets where the value of those products is realised. Without Hammerfest, Karsto, Kollsnes, Mongstad, Nyhamna, Sture, and Tjeldbergeodden, the vast wealth of Norway's offshore oil, gas, and condensate resources could not come ashore. Stretching across the seabed of the North Sea, Norwegian Sea and Barents Sea , Norway's offshore pipeline network carries hydrocarbons from fields to the country's vital onshore terminals where products are received, refined, de-watered, compressed, and stabilised for re-export, and monetised. Keeping those onshore hubs running requires a massive investment to maintain an intricate, vast hydrocarbon handling system. Tjeldbergeodden is the landing point for the Haltenpipe system, carrying gas from Heidrun in the Norwegian Sea and comprises four separate plants, including gas receiving facilities, methanol handling, air gas and liquefied gas, and is operated by Statoil. Nyhamna in mid-Norway is the landing point for the Shell-operated Ormen Lange deepwater gas field, where gas is de-watered, re-compressed and re-exported via the Langeled system to the UK. North-west of Bergen, the Sture terminal lands both oil and natural gas liquids from the North Sea. Sture process equipment recovers volatile organic compounds and it acts as a fractionation plant, production liquefied petroleum gas (LPG) for export by ship, or via pipeline into the Vestprosess system at Mongstad. Sture is operated by Statoil. Kollsnes, north-west of Bergen, primarily handles output from the Troll field. Here, liquids are de-watered and compressed. Gas is piped to Europe and NGLs and condensate go to the Vestprosess plant at Mongstad. Tjeldbergeodden is the receiving point for the Haltenpipe system, carrying gas from Heidrun in the Norwegian Sea, and it has four separate facilities, for gas reception, processing for methanol, air gas and gas liquefaction. Just north of Stavanger, Kårstø separates handles rich gas from Statipipe and the Åsgard Transport system. Condensate comes from Sleipner and from Kårstø, gas goes into the Europipe II pipeline, and NGLs are exported via tankers. Also near Bergen, Mongstad is a major hydrocarbon hub. It is a crude oil terminal, refinery, and fractionation plant for NGLs. Hammerfest is currently the home for Norway's only LNG plant, receiving gas from the Barents Sea Snohvit field. Bu9t soon that will change. Norske Shell Nyhamna

onshore bases

Kollsnes, Gassco

New productions is due to flow into Mongstad from 2014 which is the year the Valemon field is due to come onstream. This summer operator Statoil saw the Heerema crane barge Thialf lift the 9,000 tonnes 160 metre tall steel jacket for the Valemeon field into place on 18 June. Built by Heerema Fabrication Group in Vlissingen, the steel jacket will support a gas and condensate process deck, which will export rich gas production via a new pipeline and into existing infrastructure to the Huldra platform and from there to Heimdal for processing. Condensate will be exported from Valemon to the Kvitebjørn platform to be stabilised and from there output will go via the Troll oil pipeline to the Mongstad onshore terminal. Overall, the project represents a NOK 20 billion (US $3.36 bn) investment by Statoil and its partners in the platform, pipelines and production wells. Valemon is to facilitate further developments in the Tampen and Heimdal areas, according to Ivar Asheim, Statoil's head of field development on the Norwegian Continental Shelf.. Øystein Michelsen, Statoil's executive vice president for E&P Norway points out: “The Heimdal platform in particular depends on new gas volumes to extend its commercial life.” he adds: “Valemon’s contribution will make it possible to exploit other gas reserves in the area.” Output from Valemon will also help utilise spare processing capacity on the Kvitebjørn and Heimdal installations

Keeping Kolsnes North-west of Bergen, Kollsnes is a key part of the Norwegian onshore infrastructure, receiving gas from some of the Norway's biggest offshore assets, Troll, Kvitebjørn and Visund in the North Sea. At Kollsnes, liquids are de-watered and compressed, with gas being piped to Europe and NGLs and condensate go to the Vestprosess plant at Mongstad. Gas from Troll Øst and Troll Vest arrives via two multi-phase pipelines to the Kollsnes gas processing plant at Kollsnes. After separation, condensate is transported by pipeline partly to the Sture terminal, and to Mongstad. Dry gas goes into the Zeepipe II A and II B systems, and oil from Troll B and Troll C goes into the Troll Oil Pipelines I and II, also taking production to the Mongstad oil terminal Gas from Troll Øst and Troll Vest is transported via two multi-phase pipelines to the gas plant at Kollsnes. Condensate is separated, and transported partly to the Sture terminal, and partly to Mongstad. Dry gas goes into the in Zeepipe II A and II B systems, while oil from Troll B and Troll C goes into the Troll Oil Pipelines I and II, pipelines, carrying production to the Mongstad oil terminal. Earlier this year Kollsnes operator Gassco completed a NOK 3 billion (US $508 million) plant upgrade involving 2.3 million man hours of work to equip the facility for the future. The work was in two parts: Firstly the tie-in in of a third gas pipeline from the Troll A platform – designated P12 - and upgrading water treatment plant and glycol train at Kollsnes. Work was undertaken while the plant remained in full production – avoiding costly and complicated closedowns – and, as Gassco boasts, within budget. New process modules were fabricated off site. “Completing the modules outside the facility has reduced both risk and costs,” points out Alvin Hansen, vice president for process plants at Gassco. “The installation phase was

therefore implemented very effectively.” Kollsnes came online in 1996 to take production from the Troll Gas development. From Kollsnes, treated gas goes into four major pipelines to Europe – Austria, Belgium, the Czech Republic, France, Germany, Netherlands and Spain - via Europipe 1 and II, Franpipe, Zeepipe, and Statpipe, underlining Norway's key role in European energy supplies. Plant processing capacity has been increased several times since it became operational in 1996. Daily processing capacity is now up to 143 million standard cubic metres of gas and 69,000 barrels of NGLs (non-gas liquids), piped in from the Troll, Kvitebjørn and Visund fields – up from the original capacity of 120 Mcm/d when it opened. Increased capacity is a result of several considerable investments. In 2005 a NOK 3 billion NGL extraction plant started up to handle rich gas from Kvitebjorn, providing processing capacity for up to 26 million standard cubic metres of gas per day. In October that year, gas from Visund flowed into Kollsnes. The same year saw a new compressor installed on the Troll A platform which exports into Kollsnes, and in 2006 a sixth export compressor became operational there. Gas treatment processes at Kollsnes involves separating out Non Gas Liquids, removing Monoethylene Glycol (MEG) hydrate inhibitor, drying and re-compressing the dry gas for export And the Vestprosess system ties Kollsnes to the oil refinery at Mongstad further north, with a pipe-

onshore bases

line carrying NGL. At Mongstad NGLs from Kollsnes are processed further by fractionation into propane, butanes and naphtha. In February 2011 Aker Solutions secured a NOK 1.5 billion EPC contract from Statoil for engineering, procurement and construction to tie in a new pipeline from Troll to Kollsnes. Aker's work also covers two “robustness” projects to maintain Kollsnes facilities. One is for maintaining technical integrity of plant, to ensure it continues deliver maximum volumes of sales gas in future. This has involved replacing three MEG regeneration trains, and upgrades to the waste water treatment plant. Aker's contract has additional options for upgrading condensate export pumps and water cooling facilities. Completion of the work is due this year. And A F Group has a NOK 100 million sub-contract from ABB for civil works for Statoil’s Troll A 3 and 4 Pre-compression Project at Kollsnes. This is for constructing a new rectifier building and providing landfall for power cables to Troll A; trenches, and concrete slabs for new equipment. Work started in April and is due to be completed February 2014. (Sources: Gassco) Gas network operator Gassco is responsible for an offshore network totalling 7,795 kilometres. It was created in 2001 as part of a major reorganisation of owners of several Norwegian pipeline operators, bringig Norway into line with a European Union directive on gas sector operations, underpinned by the belief that transport and process plants should serve all gas producers: Gassco has to be neutral to them all.

New Nyhamna Nyhamna is the landing point from the Ormen Lange deepwater gas field, developed originally by Norsk Hydro and later Statoil, but now operated by Shell. At Nyhamna, Ormen Lange gas is de-watered, MEG is removed and recycled, gas is re-compressed then sent into the Langeled pipeline to the Easington gas terminal on the UK's east coast. Now, Nyhamna is set for a new lease of life as the landing point for a planned new pipeline for recent discoveries: Gassco is contemplating a decision to build the new Norwegian Sea Gas Infrastructure pipeline - NSGI – involving construction of a 500 kilometre (312 mile) offshore pipeline from the Luva field discovery - Statoil operated and now called Aasta Hansteen - to Nyhamna, which will also provide tie-in points for the Linnorm and Zidane discoveries, and link with the Åsgard Transport pipeline.

Ix-head Looking to Linnorm Front End Engineering and Design work for Norway's forthcoming Linnorm development is being performed by Aberdeen based Wood Group, one of the key offshore contracts won by British-based Wood Group in the last few months. From Draugen, Linnorm and Luva gas is to go into the Nyhamna terminal. “In subsea and pipelines, the strong overall performance continues, driven in particular by the UK and Australia,” Wood Group stated in a recent trading update. “Earlier this year we secured an Enterprise Frame Agreement with Shell, under which we are executing a range of work including the Linnorm FEED study in Norway,” Wood Group confirmed. Linnorm – previously known as the Onyx South West prospect when it was first discovered in 2005 – is being progressed as a subsea tieback to the Shell-operated Draugen platform, 50 kilometres (31 miles) east. Onyx was discovered in PL255, covering blocks 6406/5, 6 and 9.

Elsewhere in this issue Shell has disclosed plans for investing up to NOK 70 billion |($11.69 bn) in several new Norwegian fields and infrastructure including Linnorm, and expansion of gas processing at Nyhamna as well as on nonoperated fields, plus the compression project at Ormen Lange, in addition to new production wells and infrastructure at both Draugen and Ormen Lange, acording to Per-Olaf Hustand director of upstream for Norske Shell. An investment decision on Linnorm is expected early 2013. It is a demanding field and must be developed together to defend investments in infrastructure, says Hustad, adding: “There is no guarantee that there will be a reality, but that's what we and partners are working towards.” Concurrently the NSGI feasibility study is underway by Gassco with field operators Statoil and Shell, to consider a 500 kilometres (312 mile) pipeline from the Aasta Hansteen discovery – formerly Luna - to Nyhamna, with possible tie-ins for Linnorm and Zidane, linking to the Åsgard Transport system to Kårstø. This also involves capacity expansion at the Nyhamna plant. Eleven companies are financing the project, for which a selection was made October 2011. Statoil is now the project's operator, and a final investment decision is due in the fourth quarter this year, and start-up is planned for 2016. Contractor Kvaerner has already landed work to under a six year NOK 6 billion ($1 bn) framework agreement for modification at Nyhamna on behalf of Shell, and it has nominated Aker Solutions to provide support. Kvaerner will deliver engineering, procurement, construction and management at the Ormen Lange Nyhamna terminal. For Aker, the deal which will be supported from Oslo, Kristiansund and Tromsø, is worth between NOK 850 and 950 million.

Langeled Fact Box You probably never knew that in 2009 a subsea pipeline pig, designated “Jimmy 07” was used to carry a letter from the Mayor of Aukra, home of the Nyhamna Ormen Lange receiving facility, all the way through the Langeled pipeline to the Mayor of Easington, the UK landing point for the Langeled system. This was the first internal inspection of the gas pipeline from Ormen Lange. Langeled has two 30-inch (762 millimetre) pipelines from the Ormen Lange field location to Nyhamna. From Nyhamna, Langeled stretches 1,166 kilometres (750 miles) to Easington. From Nyhamna to Sleipner, the line is 42 inches (1,067 mm) in diameter, and the Sleipner to Easington leg is wider, at 44-inches (1,118 mm) diameter. By the time Langeled was built by Acergy, Allseas, and Saipem - with annual capacity up to 25 billion cubic metres (900 billion cubic feet) - its cost was put at NOK 16 bn (US $2.66 bn or £1.7 bn)

onshore bases

Kårstø, Gassco

Nyhamna compression

Carrying on Kårstø

August last year was important for Nyhamna as 22,000 cubic metres of sea water started pouring into a specially-built concrete test pit there. After 17 hours, the pit, 42 metres long, 28 m wide and 17 m deep, was full and work could commence on the next phase of the Ormen Lange subsea compression trial. Operator Shell is to choose later this year between either a platform-based compression platform to drive Ormen Lange gas along the two export pipelines into Nyhamna, or a subsea-based system. If the test on subsea compression equipment at Nyhamna succeeds, then subsea gas compression at Ormen Lange will be the way to go, without surface facilities, once natural reservoir pressure declines and it is no longer sufficient to drive gas to Nyhamna. Shell aims to start compression at Ormen Lange in 2015, although there is a caveat to use compression from onshore for one or two years first, to defer a final investment decision. Technically speaking, the compression project, whether platform or subsea based, will be required to deliver a flowing wellhead pressure of 155 barg, in order to achieve a pressure of 90 barg at the Nyhamna terminal, which will entail a typical sales gas export rate of 70 Mcm/d

Kårstø and Kollsnes are both operated by pipeline network operator Gassco, with Statoil used as technical service provider. Kårstø, just north of Stavanger. plays a key role in the transport and treatment of gas and condensate from the central Norwegian Continental Shelf. Operating since July 1985 when first gas arrived from Statfjord, Kårstø now handles rich gas via Statpipe and the Åsgard Transport pipelines. Un-stabilised condensate also arrives from Sleipner.From these wellstreams, Kårstø produces dry methane gas, liquefied petroleum gases – propane and butane, plus naptha – natural gasoline - and stabilised condensate. Dry gas – methane and ethane – is re-exported from Kårstø via Statpipe, Norpipe and Europipe II. NGLs and condensate are exported by ship.

“A flowing wellhead pressure of typically 140 bar required to meet the onshore arrival pressure of 75 bar and the corresponding sales gas export rate of 60 MSm3/d will determine the point at which installation of offshore compression is needed,” according to a 2007 SPE paper presented at OTC co-written be experts from Shell, Aker Kvaerner, Converteam, and GE Oil and Gas. [1] The subsea pilot compression plant installed at Nyhamna is 36 metres (120 feet ) long and weighs over 1000 tonnes. This has to compete against a platform-based compression facility with topsides equivalent to Draugen at around 26,000 tonnes, with all the related costs of a manned facility requiring regular crew change flights and maintenance. If subsea is preferred, a four-train compressor could involve a subsea structure of around 8,000 tonnes, Shell has suggested. But a 30-strong Shell team in Aberdeen is also working on topsides for the surface compression facility. Others in Rijswick, in The Netherlands, are designing a supporting steel jacket, with input from experts from Houston with experience of designing tension leg platforms: The water depth at Ormen Lange is between 850 and 1,100 metres (2,788 – 3,608 ft). Nyhamna will be ground-breaking if subsea gas compression proves viable and if it can be achieved at Ormen Lange, it may be applied to similar fields. [1] Source: Bernt Bjerkreim and Karl Olav Haram, Hydro; Edwin Poorte, Shell; Håkon Skofteland and Øyvind Rokne, Aker Kvaerner; Serigne Diop, Converteam; Alberto Tesei, GE Oil & Gas; and Svend Rocke, Vetco Source; Offshore Technology Conference, 30 April-3 May 2007, Houston, Texas.

Karsto is due to undergo further change to prepare for new production from the Gudrun field by 2014. Light oil from Gudrun will come into Kårstø after being blended with Sleipner condensate Conceptual engineering has identified changes necessary to ensure Kårstø process facilities can handle Gudrun's heavier feedstock. Facilities will be need for sour gas – hydrogen sulphide - and power upgrades are needed for oil, gas and water separators. Pre-engineering studies are underway and modifications are due to be complete by January 2014, when Gudrun is due onstream. Gassco is planning several more changes for Kårstø: a Compressor Upgrade Project (CUP); Kårstø Expansion Project (KEP) as well as a Boiler

onshore bases

Kårstø, Gassco

Upgrade Project (BUP). Upgrades to compressors at Kårstø and Kollsnes are planned as part of CUP. Variable speed drives on three compressors at Kårstø are being upgraded as part of CUP, which also involves five export compressors at Kollsnes, with a total cost of NOK 400 million, with completion due next year.

Kep The Kårstø expansion project, KEP, is about improving safety and reliability for the future, and focusses on older parts of the complex. Instruments and utilities are being upgraded, along with fiscal metering facilities for NGL exports. “Control systems with cabling and other components are approaching the end of their useful lives,” explains project manager Leif Solberg at operator Gassco. “Instead of replacing them bit by bit, we’re modernising the whole plant by exchanging and converting parts of the technical installations.” Fire and gas detections systems are being replaced. Process management and shutdown systems will be separated to work independently, enhancing operational reliability. Emergency generators are being moved to a new secure area too, and redundant facilities are being demolished. KEP started in 2008 and ends this year, and Gassco puts the total investment is at NOK 7.7 billion. The Kårstø boiler upgrade project – BUP – aims to extend boiler life by ten years, improve uptime and should be done by 2014, costing another NOK 760 m.

Gassco's pipelines: Pipeline

Length

Diameter

Capacity

Asgard Transport

707 km

42-inch

70.4 mill

Gjoa gas pipeline

130 km

28-inch

17.0 mill

Europipe II

660 km

40 inch

45.4 mll

Franpipe

840 km

42-inch

53.7 mill

Haltenpipe

250 km

16 inch

7 mill

Kvitebjørn gas export

145 kwm

30-inch

26.5 mill

Langeled

1200 km

42/44-inch

70.7 mill

Norne

126 km

16-inch

10 mill

Norpipe

440 km

36-inch

44.4 mill

OGT

109 km

36-inch

41.9 mill

Ormen Lange

120 km

30-inch

no data

Tampen Link

23 km

32-inch

25.0 mill

Troll Gas

133 km

36-inch

No data

Zeepipe

814 m

40-inch

41.9 mill

100

onshore bases

Mongstad refinery

Making more of Mongstad Last year Statoil signposted new plans for the Mongstad plant as part of its aim to turn the site into a model for carbon capture and storage (CCS) technology. In a recommendation to the Ministry of Petroleum and Energy, Statoil argued that carbon capture at Mongstad could be realised without risk to people or the environment, but called for a broader technology approach after taking on board research results on amine-based carbon capture technology which prompted concern over amine-based absorption technology. But this summer Statoil took a step further, saying it had solved scientific challenges related to amine-based carbon absorption, by developing adequate risk assessment procedures to test whether amine technology will pass maximum emissions limits set by the Norwegian Climate and Pollution Agency – Klif. Arne Myhrvold, head of HSE in Statoil’s CCM - carbon capture Mongstad- project disclosed in June this year: “We have developed a toolbox that enables us to analyse emissions from open amine facilities for capture of CO2, including assessing the degree to which humans and the environment are exposed to hazardous components from such facilities,” he explained. “Now we have the methods that enable us to measure these emissions, and the resulting exposure. Together with Klif’s emission limits, we have what we need to test various amine technologies in a manner that is prudent and comparable,” says Myhrvold. Previously Statoil has admitted that it has had issues related to inadequate knowledge of the potential health effects of amine technology and the lack of maturity of other, alternative carbon capture technologies. Work on a carbon capture technology qualification programme for Mongstad commenced in 2011, with support from various scientific and academic institutions. Originally technologies were supplied by Mitsubishi Heavy Industries, Alstom Carbon Capture, Siemens, Aker Clean Carbon and Huaneng-Ceri Powerspan in a joint venture, which were tested separately. Statoil, partnered by Dong Energy, Shell, Vattenfall and Gassnova are co-operating on a full-scale carbon capture plant at Mongstad, based on using carbon from a combined heat and power station there. A decision is due to be made on a full scale plant at Mongstad by 2016, with engineering and construction due to start immediately after that decision has been made. In May this year a new Mongstad technology centre – dubbed TCM - opened with the aim of capturing up to 100,000 tonnes of carbon a year from the Mongstad CHP plant, and from Mongstad refinery emissions. Co-owned by Gassnova on behalf of the Norwegian government, with Statoil, Shell, and South Africa's Sasoil, TCM will test two different carbon systems, using an amino-based concept from Aker Clean Carbon, and Alstom's chilled ammonia process (CAP) technology, to decide on the best way of cutting carbon emissions, using a three stage qualification process: The first phase is a feasibility study, then a demonstration to show the technology can deliver the required performance, and thirdly, a concept study for a full-scale plant. Each system had to undergo a 1000 hour test, and that phase completed in April.

A second test period of 2,000 hours also has to be fulfilled. Last December Jacobs Engineering was awarded a deal to provide engineering and technical assistance to support the full-scale CO2 and CHP plants at Mongstad and it includes detailed engineering, construction planning, handling HSE issues, and providing costings. But the CCM project is not without critics, among them environmental pressure group Bellona which has accused Statoil of dragging its feet over carbon capture and storage, especially in March 2011 after Statoil postponed a final investment decision on the full scale Mongstad CCS plant to 2016 due to concern over amine-absorption technology. Bellona accused Statoil then of “Stabbing CCS in the back.” Erlend Fjøsna, programme director of the Bellona Environmental CCS Team stated then: “It appears that Statoil exaggerates the risk to further delay the CCS project as much as possible. Statoil is reluctant to make big investments in CCS technology before it is ... forced to.” Norway's Tjeldbergeodden plant opened in 1997 taking feedstock from the Heidrun field in the Norwegian Sea and produces up to 900,000 tonnes of methanol a year, making it Europe's largest, accounting for up to 25% of Europe's methanol production. Tjeldbergeodden, which cost NOK 3.6 billion to develop, also has an LNG plant, cooling gas down to minus 163° C, to produce up to 12,000 tonnes of liquefied gas a year. Statoil has an 81.7% majority share in the plant; the rest is owned by ConocoPhillips.

onshore bases

Troll A -Kollsness pipeline tie-in caption Caption: As part of the project to tie in a new fifth pipeline to the Troll A platform which runs back to Kollsnes, Aberdeen-based engineering specalist Stats Group - Specialist Tools and Testing Services - worked on mating the new pipeline into the riser leg at Troll A, using one of the existing seal tubes. This shows the worksite inside the Troll A end of the new pipeline at a depth of 300 metres (1,000 ft) where the new entry point had to provide full isolation between the inside of the leg and seawater, withstanding pressure of 30 Bar (435 lbs/square inch).

101

07/

Maintenance & Modifications Major MMO-investments ahead

104

MMO

Major MMO-investments ahead Major MMO-investments ahead NorwayÂ´s maintenance and modifications market has for some time generated contracts worth about NOK 25 billion annually, however, it is estimated that this market can increase by at least 50 percent in the years ahead. However, the road ahead is not without bumps. The Norwegian maintenance and modification market (M & M) has for decades been an important foundation for many suppliers. This market is characterized by longevity and a reasonable degree of predictability.

Different contract regimes According to Lars Sem, head of marketing at Fabricom Norway, M&M suppliers over the years haves had different contractual regimes over the years . The model where MMO tasks were assigned in the form of long-term framework agreements with a continuous EPCI responsibility ties in combined action with a major supplier involvement in the study phase was introduced in the first half of the 1990s. Since then it has been made relatively extensive adjustments to the of MMO content of MMO agreements has been made.' content. Examples are variations in decisions related to the handling of ISO, issues, maintenance and inspection supplies, as well as attempts to remove increase the economies of scale through geographic cluster contracts. The MMO market has so far been characterized by the fact that there are a few major operating companies requesting the majority of the volume of work. These operating companies even possess considerable expertise and capacity, which means that the volume of established MMO agreements are largely linked to the implementation of the modification tasks. The maintenance element has largely been handled by the operating companies own organizations in combined action with the application of specialized niche suppliers. This is a method most likely to be continued. However, we now see that the operating companies that in recent years haves built up their its operations in Norway, often choose contractual regimes that have s a slightly different task- sharing element than what has previously been the practice. The Norwegian MMO market is expected to ask for the order of 8 eight to 10 ten million hours per year in existing frame work agreements. In addition, the operating companies have requested significant additional supplies that together make this an attractive market segment for many businesses.

MMO

The activity in the MMO market is expected to increase in the coming years. There are several factors that support such an assumption. First, new offshore facilities continuously comes in operation and thus demand new and improved MOM capacity. Furthermore, the operating companies generally has had success in finding new commercial discoveries that can be linked to existing offshore facilities, which also fosters new modifications. Last but not least, many offshore facilities need upgrades due to lifespan extension in combination with changes in current regulations, according to Sem. Another factor that also has great significance is the increase in the size of the modification missions that can be established via the existing frame work contracts. In the early years of MMO contracts, youth the limit of what could be awarded was ere limited to projects with a value of between NOK 5 â&#x20AC;&#x201C; and 10 million. The current agreements provide the opportunity ening to for awarding contracts worth at NOK 150 million or more. MMO contracts are generally characterized by having a relatively low profit potential and several operating companies have been successful with the timing of entry into agreements. Attractiveness of the agreements reflects the general level of activity in the market. In periods where there is a low level of activity, long-term agreements are very attractive. In periods when demand is high, the available capacity will be more attractive for the contractors to apply in seek other contractual relationships with an assumed higher profit potential. On the other hand, operating companies wants to optimize the application of MMO contracts in periods of high activity level to ensure the availability of capacity at an attractive price. Although there are fluctuations in oil and gas prices and a lot of turmoil in financial markets, there is much probability of a high active state in the Norwegian offshore industry in the coming years. This relates to both new field developments, as well as upgrading and maintenance of existing facilities that in many cases demand the same capacity. To meet demand growth, more and more work has been moved out of the country. This applies to both manufacturing and engineering tasks. Engineering capacity is the primary bottleneck in the MMO market and it has become an "industry standard" to perform parts of the deliveries through satellite offices in Eastern Europe and Asia. Although more and more work is moved out of the country as was seen experienced for the time during the previous high activity period up to 2009, this came with increased levels of staff turnover, growth in the consulting market and growth in overall costs of personnel, materials and equipment.

Lars Sem - Director, Business Development in Fabricom GDF Suez

To mitigate the negative effects that characteristically follows from such a development, it is important that the supplier industry get acquire the necessary prerequisites for ongoing work to develop and maintain a minimum level of capacity and expertise. This requires a close and responsible dialogue between the actors in the industry for to ensure the best possible way to facilitate the use of the capacity and expertise provided which may be used effectively over time without the costs getting s out of control and thus weakening s the possibility opportunities that the MMO market provides, according to Sem.

105

106

MMO

The giant Ekofisk field requires giant future investments

The road ahead ConocoPhillips, Statoil and Shell will in the foreseeable future award large contracts. The planned maintenance shutdown in 2013 for the Ekofisk area is one of the largest since the transition to the Ekofisk II in 1998. During this operation, some 200 000 man hours will be used during the work on the 14 offshore installations in operation in the Ekofisk area. In addition to inspection, maintenance and modification activities this will also include preparatory work for the installation of three new platforms on the field.In May last year ConocoPhillips granted Aibel a framework agreement for maintenance and modifications in the Ekofisk area. The agreement lasts for five years, with options for three plus three years. Aibel has estimated that the contract is worth about NOK 4 billion before options. Aibel has been the framework agreement for the maintenance and modification work for ConocoPhillips since 2002, and today approximately 800 employees are engaged under the contract.

Sørco became the big winners of the MMO contracts, while the largest ISO contracts went to the players Kaefer Energy and BIS Industries, with deals worth roughly NOK 610 and 550 million annually, while Beerenberg Corp.. and Linjebygg Offshore were awarded contracts worth approximately between NOK 200 and 140 million annually. Some of these contracts may be up for grabs within a year or so, should the options not be used.

It is the installation of these devices that are to be prepared:

Norwegian Shell, which also operates the discovery Linnorm in the Norwegian Sea, and its partners decided to go ahead and make the investment decision in a year's time. Linnorm, together with Statoil's Luva gas discovery are regarded as pillars of a large-scale investment in new infrastructure in the Norwegian Sea.The development concept for Linnorm as a subsea development tied back to the producing field Draugen. The development concept is subsea wells tied back to the field. This will require several new modules for processing and compression of the gas on the Draugen installation. Linnorm gas needs provision in the form of a new gas pipeline and Nyhamna landing facilities for Ormen Lange, is identified as the optimal landing site. As the Offshore.no experience, investments in the reception facility at Nyhamna on will be "several billion".

• • •

Ekofisk 2/4 L, hotel and field center for the Ekofisk Centre. Ekofisk 2/4 Z, wellhead platform (36 slots) and seabed framework for eight water injection wells. Eldfisk 2/7 S, Integrated wellhead, processing and accommodation platform (40 slots and 152 beds)

In addition, the gas compression platform B-11 being phased out and the 36-inch gas export line to Emden placed around the platform.

Statoil's projects in 2015 and 2016 Statoil, which represents about 80 percent of Norway's investments on the continental shelf, has already sanctioned projects worth a staggering NOK 145 billion, not including drilling costs in MMO and IOR projects.

In addition, may also major frame agreement contracts be on the market: Statoil in 2010 awarded a number of major framework agreements within the MMO, or maintenance and modification as well as within ISO, or insulation, scaffolding and surface treatment, effective for 4+4 years. In all, it awarded framework contracts together worth around 49 billion, and ISO-frame contracts worth a total of NOK 12 billion. Aibel, Aker Solutions, Reinertsen, Fabricom and Apply

Shell´s developments

MMO

Demanding contracts The MMO framework contracts awarded in late 2010 by Statoil had the objective of increasing competition. This was successful, at least for the oil companies, but these are demanding contracts for vendors who are sometimes struggling to make a profit, according to Atle Sundøy. “Our contention is that the supplier industry has not been fully able (or wanted) to identify and calculate the contractual risk and calculated this in their offers. The consequences of this contract is high risk with potential for economic loss, says Sundøy in the company Inventure to OMG.

The cost ceiling is not reached Statoil, which represents about 80 percent of Norway's investments and which has sanctioned projects worth NOK 145 billion, admit that many of the group's MMO and improved recovery projects are among the most profitable, despite rocketing delivery costs. Although keeping costs down is a major priority, Statoil maintains that a cost ceiling has not yet been reached.“Costs have soared in recent years and this translates directly into profitability in mature fields”, said the company's manager for the Norwegian shelf, Øystein Michelsen to OMG, adding that this does not mean that the pain threshold is to be reached soon. “Many of our most profitable projects are in the IOR area”, Michelsen said. Statoil are, however, currently spending NOK 20 million day at the mature Gullfaks field on enhanced oil recovery. Total investments will reach an estimated NOK 8.5 billion, and it will result in 400 million barrels of additional oil extracted from the field.

Drilling Costs Statoil is working hard to reduce drilling costs. Hence the new category B rigs that it believes will reduce costs by 40 percent, compared with conventional rigs. “We are working to reduce well costs, therefore the new rigs are so incredibly important”, said Michelsen.Statoil awarded a contract to Aker Solutions recently for the rental of a new category B type rig , which represents a technological advancement for the industry. The category B rig is specially adapted for drilling and maintenance services for existing production wells. Category-B-rigs will be an important contribution in the coming years to increase recovery from existing fields, according to Statoil.

Shell-billions in the blue Bernt Granås, Shell's director of projects in Norway, tells OMG that in the imminent future his goodwill in awards of contract for the rebuilding of the plant Nyhamna and other projects will be reserved for contractors already established, or willing to establish offices in Mid-Norway. “We have a substantial portfolio. We have already awarded a number of large contracts, Aibel got a big contract recently. And we will award a major contract in connection with the development of the fields Linnorm and Luva”. Granås maintains that the contractors must pay close attention: “There will be focus on local effects and internationalization of Norwegian suppliers. Aibel's ability to do business in central and northern Norway was one of the season why they got the contract with us recently. It is very beneficial to have suppliers in rural Norway. There is less pressure on wages and a more stable work force”. Granås points out some of that Shell's contract strategy is to reach smaller, local suppliers: “We will also focus on getting the smaller, local suppliers with us. When it comes to suppliers elsewhere in the country, I will also say that if one wants to be a supplier to us, one has to establish oneself further north, he says with a clear link to suppliers in the Stavanger area”.

Sundøy points out that oil companies place high demands on suppliers: “We are facing a period of high activity on the Norwegian shelf. New field developments and planned modification projects contribute to this. The requirements that oil companies are setting to the supplier industry are tougher than ever and this pushes suppliers' costs upward. At the same time the operators are exercising massive price pressure in the negotiations, contracts and contract management”.

Sundøy identifies three main problems for the supplier industry: •

A pragmatic workforce that has a low threshold to switching employers, has resultied in extensive use of consultants and hiring, which has helped to increase the economic challenge in times of high demand for resources.

•

Operating companies have clearly flagged an expectation of lower costs and increased quality. Their strategy of creating strong competition for proejcts has been successful. It has created strong competition for MMO contracts and the supply industry has chosen to join the journey.

•

The consequence is that the oil supply industry over-bid each other in competition for resources while underbidding against each other in competition for jobs. This does not go together, and margins will be lower because operating companies, to achieve lower costs and greater predictability in MMO, have introduced wide-ranging and complex contracts which move risk from seller to buyer.

107

108

MMO

- It's about patriotism

A rollercoaster industry? Oil companies in Norway have faced criticism because they are quick to downsize when the oil price drops, causing them, and the industry alike, to lose experienced staff that can be hard to re-employ back when the market is moving upwards again. Per Rune Henriksen, Secretary of State for Petroleum and Energy, sees few clouds in the sky, but quotes former mayor of Stord, Magne Rommetvedt, who thought it only took just a pebble in the road before the oil industry looked dark on the future. “Magne Rommetvedt criticized the oil industry for being to be manic in good times and depressed when there is a small stone in the road. We in the Ministry of Petroleum and Energy are trying to counter this. The Norwegian Continental Shelf has the future ahead of it. Still, we have produced only 43 percent of the reserves. In other words, there is much left” Henriksen said during a seminar in Stavanger. Henriksen justified his bright view of the future with the need for energy with strong global population growth and bright prospects for the Norwegian suppliers due to a current turnover of 50 per cent internationally. “We see the importance of running four parallel races now. The first is the continued focus on increased production. Then, turning the existing discoveries into production, and here we see that it's done a lot. So it must be explored more. And it more new acreage must be opened . We are now working on an impact assessment in the area off Jan Mayen. We see that Iceland is about to open for exploration activities on their sites here. In December, we will prepare a report which will form the basis for further debate on the possible opening of the areas off the coast of Lofoten”, he said, adding that the high cost level in the business is nothing the Ministry can do something about, but rig access is something they are looking at. “We have a committee now looking at the high level of domestic rules, and what can be done to improve the flow of drilling rigs to the Norwegian shelf”. Henriksen is referring to the high level of domestic policies abbreviated as SUT, which means that all the rigs will be operating in Norwegian waters must have a separate approval. This is a controversial scheme and some rig operators have told OMG that these are meaningless rules. Norway's Petroleum Safety Authority, has also told OMG staff that this is not controversial because they are made in cooperation with the rig industry, it claims.

Creating 300 new jobs in southern Norway Ten companies in Vest-Agder will be part of the booming oil and renewable energy market.“We have an alliance aimed at operators, energy companies and major suppliers based on multi-disciplinary and complementary skills. We can take projects in both oil and renewable energy. Alliance companies have experience of delivery within different disciplines. Such as: marine, drilling , equipment for offshore platforms and wind mills etc. says Hans Jørgen Fedog, production manager in Norway´s traditional shipyard Simek”, to OMG. According to Fedog, they need people to join Simek to engineer pipes, steel and for machining , but also, eventually need more workers to boost production. This is a picture that probably applies to most companies in the alliance.

According to entrepreneur Per Tønnesen, the aim is to reverse the trend where young people leave the region because there is not enough growth in the industry. “This is about business and patriotism. We aim to create 300 jobs within a few years. I want our local young people to remain in the district, not move away and to attract new expertise from other regions. We are in the market for new assignments and will require staff in most disciplines. We focus on strengthening the engineering expertise”. Over time, he says he will be needing employees for the engineering, design, piping, steel and electronics fields. “Today we supply advanced shipping solutions, drilling equipment, boilers and system packages, and we have a significant capacity in mechanical production. We would want to increase our capacity and achieve higher growth. Our central location between Stavanger and Kristiansand, offers great opportunities”, he says.

This is the alliance The Lister Alliance comprises the companies; Andersen Mek. Workshop, Parat Halvorsen, Eiken Mek. Workshop, Steis Mek. Workshop, Kvina Shipyard Property, Flekkefjord Electrical, Staalesen Mek. Workshop, Seland Mek. Workshop, Simek AS and Einar Øgrey Farsund. “These companies have expertise in hydraulics, steam pressure maintenance , storage, electrical, instrumentation, system deliveries, mechanical manufacturing and steel construction. The developments in the market has been in the direction of larger suppliers, fewer interfaces and longterm contracts. Framework agreements, the growth driver for many businesses, are hard to gain entry to, as a small or medium sized provider”, says Fedog. According to Fedog, Simek now has spare production capacity due to the production of hulls: They were traditionally aligned in Simek's own production halls, but they now come finished from lower cost countries. “We used to recieve ships in modules which were compiled in our halls. Now the hulls come completed from Poland, and thus we have availability in our halls, and this capacity is what we and want to exploit. The order book for ships is almost full, but we have capacity in our halls. We have hired Erik Espenes, which comes from Halvorsen Offshore, where he worked directly for operating companies. He is working to establish Simek as an offshore provider”, says Fedog.

109

110

MMO

can With close to 20 years of experience, CAN is currently one of the leading players when it comes to skilled operations combined with rope access technology. All projects are planned by our experienced and operationally oriented engineers based at our office in Stavanger. Together with our highly qualified operators, they have delivered over 1,000 projects, mostly on the Norwegian continental shelf.

Ph o n e : + 4 7 6 9 3 6 0 4 7 0 FAX : + 4 7 6 9 3 6 0 4 7 1 E M AIL : k k @ p l e x x . n o w w w. p l e x x . n o

CAN AS Our goal is as follows: "CAN shall continuously develop in-house expertise in order to be the preferred contractor for work at heights." To achieve this goal, we have assembled a staff of skilled employees with a high work ethic. All our employees have been chosen for their experience, academic and not least human qualities which can help us succeed.

concept that covers all aspects within the category dropped objects (DO). CAN Prevent DO consist of individual modules that can be executed separately or combined with others to cover several aspects. We can set up an annual program for one rig or several rigs, which means we can customize a concept from the customer's needs.

We have some of Norway's best method engineers and a staff of skilled operators in many disciplines, all with special competence in rope access technique. This enables us to solve both large and small tasks practically anywhere, safely and effectively. In our experience, many assignments can be completed in a third of the time by not using scaffolding.

CAN Products –Inspect

CAN Products –Install and Remove

Welding is sometimes required in difficult and inaccessible areas. CAN Weld is a total concept developed for the performance of hot work in these areas using rope access techniques. The concept covers all the necessary equipment and all the necessary functions needed to implement, monitor and document the welding job

Many jobs are located in areas where there is insufficient crane coverage. CAN AS has the solution: with specially designed lifting equipment, in combination with experience and expertise within rigging and cross hauling, we are able to access even the most difficult locations to install and remove various structures.

CAN Products –Prevent Dropped Objects CAN Prevent Dropped Objects is a total

CAN is now one of the leading companies within inspection, combined with rope access techniques. We have a team of skilled inspectors experienced in a variety of NDT methods – UT, ET, MT, PT, VT and RT – and perform structural inspections of all kinds, both offshore and onshore.

CAN Products – Weld

Engineering Since the company was established, CAN has assisted clients in the planning, implementation and completion of projects. The earlier in the

ADdress: Måkeveien 6, K r å k e r ø y, N o r w a y M a i l Ad D r e s s : PO B o x 2 9 3 , N -16 01 Fre d riks ta d , N o r way

project our engineers are involved, the greater the gains for the customer in terms of safety and efficiency, especially in areas with difficult access.

Safety CAN’s main goal is for all activities to take place without harm to people, equipment and the environment. All equipment and tools will be adapted for safe work at heights. When purchasing or designing new equipment, both unctionality and suitability shall be ensured in terms of safety

MMO

G oodtech We make a difference Goodtech is a technology corporation that contributes to upgrading society. Whether it's electrical systems in industrial and public sectors, switchgear assembly, automation solutions, water treatment plants or high-tech solutions for the industry, Goodtech is present in society and in the plants established.

Goodtech Projects & Services AS Goodtech is one of the main suppliers of automation and electrics and the largest process assembly contractor in the Nordic countries. In Norway, the company is an established supplier in the fields of automation and industrial IT to the oil and gas industry, and it also supplies engineering services to this market.

Future prospects Energy – major investments are being made in the energy industry, and this situation is expected to persist for many years to come.

Ph o n e : + 4 7 5 5 7 0 6 7 5 0

A D d r e s s : D a m s g å r d s v. 1 2 5

M AIL : i n f o @ g o o d t e c h . n o

5160 Laksevåg , Bergen,

w w w. g o o d t e c h . n o

Norway

why, among other things, we have our own business management system that can be customized and adapted to projects. The system within Goodtech Projects & Services AB is, of course, qualified in accordance with ISO 9001 and ISO 14001:2004. We also have the authority to work within the petrochemical and oil industry, as well as the power industry. This is possible because we possess a number of prequalification certificates, including Achilles, Sellihca and TransQ.

Integrated Operations

Oil and gas – enormous activity and demand are expected in this market for a number of years to come.

Goodtech Projects & Services AS has in over 8 years been involved with establishing Prosess Data Portal for Statoil.

Customers in focus

Our solutions for integrated operations ensure full management and control through real-time information and is made "best practice" by Statoil and has so far been used on 19 production sites.

Our customers must always be assured that we look after them before, during and after a project. We have a strong local presence, with offices from Kiruna in the north to, Malmö in the south, from Åland in the east to Bergen in the west. We offer everything from the preliminary study to the finished concept.

Quality and HSE Our cooperation with customers is based on longterm thinking, partnership and mutual trust. That's

and advice is independent and based on professional expertise. We offer neutral analyzes based on economics, risk, safety and regulatory requirements.

Operational Support Goodtech support all our products 24/7. If an operator needs assistance one of our experts is never far away. Should a situation arise, we can go straight into the systems and assist with error correction and advice. It is an important security for our customers to know that the foremost expertise is never more than a click away.

We offer qualified technical solutions within: •

Automation

•

Integrated Operations (IMS)

•

Power systems

•

Service & maintenance

We are alone in the world to have a standardized solution for so many production sites.

•

Power system analysis and simulations

•

Electrification studies

Automation- and Power Systems

•

Risk- and regularity calculations

•

Design of electrical infrastructure

•

Protection coordination, control- and

We are an independent system integrator and a partner that is present in all phases of a product's life cycle. We make a lifespan study of the rigs or other installations and map when upgrades and investments should be made. Our assessments

communication systems

111

112

MMO

K arsten M oholt AS Norway’s most complete and biggest electromechanical competence center. Established in 1945, Karsten Moholt is the largest electromechanical workshop in Norway. The company operates in energy, industry, offshore, shipping and subsea fields, and has 200 highly qualified employees in various fields. Karsten Moholt provides a 24hr service around the world.

Ph o n e : + 4 7 5 5 9 4 3 4 0 0

ADdress: Michael Krohnsgt.

FAX : + 4 7 5 5 9 4 3 4 3 5

86, 5057 Bergen, Norway

firmapost@kmoas.no

M a i l Ad D r e s s : PO B o x 2 4 5 8

w w w. k a r s t e n m o h o l t . n o

5 824 B e rge n

Overhaul, repairs and testing of electro mechanical machines

Offshore electro-installation and maintenance services

Karsten Moholt’s heavy machinery department overhauls, repairs, rewinds and performs high voltage testing on big electromechanical machines. This department has the biggest vacuum pressure tank in Norway, and has highly qualified electro mechanics, automation specialists, welders, painters and high-voltage testers. This department performs work both onsite and in workshops.

Karsten Moholt’s power network maintenance (PNM) department works in electro-installation and maintenance. The department specializes in the sales and installation of Basler products, as well as maintenance and upgrading of all types of engines, maintenance and upgrading of all types of electric boards and cabinets, certification of EEx systems, and others.

Testing, overhaul and repairs of high voltage motors, generators, transformers, gearboxes, shafts and couplings

Karsten Moholt carries out studies for all types of electric equipment, and can help you choose and implement a suitable maintenance strategy, and assemble a satisfactory stock of spare parts for your equipment.

The small machines department tests, overhauls and repairs smaller high-voltage motors, generators, transformers, gearboxes, shafts and couplings. The department has a large stock of spare parts, including rotors and couplings.

Forklift services for Zone 1 and zone 2 areas The forklift department services all kinds of forklifts, both offshore and in its workshops and modifies regular forklifts for operations in Zone 1 and Zone 2. The department has Ex-certified mechanics that can carry out services on Zone 1 and Zone 2 forklifts.

Engineering

Condition monitoring services Karsten Moholt’s Condition Monitoring department is the first in the world to be certified by Det Norske Veritas (DNV) for condition based maintenance of mobile offshore units. The department monitors all types of rotating machinery, and with the help of online/offline vibration measurements, thermography, high voltage insulation testing, and power analysis, it can assess the need for maintenance in the machines in question.

Rotating and non-rotating electrical machine inspection, service and maintenance Karsten Moholt also carries out field services all over the world, and performs inspection, service, maintenance and replacement of rotating and non-rotating electrical machines, both onshore and offshore.

MMO

norisol N orge as -access and sustainability

Norisol is one of the leading multi-disciplinary suppliers in Scandinavia within insulation, scaffolding, painting and outfitting. The company which was established in 1977, has 35 years of experience from the energy sector both onshore and offshore, the industrial sector, the shipping sector and the construction sector. Annual turnover is NOK 900 million and approximately 1050 competent employees. Throughout Scandinavia and the UK Norisol have 32 locations; this gives our customers local content in addition to having resources capable of solving complex challenges at short notice. Our decentralized locations have integrated management systems who focus on SHE.

Ph o n e : + 4 7 5 1 7 1 6 2 0 0

A D d r e s s : F l y p l a s s v. 2 1 4

norisol@norisol.no

4050 Sola, Norway

w w w. n o r i s o l . c o m

Skills, services and experience

Insulation

Additional services:

Norisol has insulation, scaffolding and surface protection as our core services. Our main focus is on new constructions, long-term maintenance, modification and decommissioning projects. Norisol has a vast amount of knowledge and expertise within this field.

We offer a complete range of technical insulation products and services. Our products and services are worldwide. Our engineering department has developed new methods of insulation, components and prefabricated elements. All products are tested and certified by an independent third party.

Tailor-made covering system for weather protection/habitats. Norisol has developed a flexible covering system that is tailor made for our scaffolding system but can be easily adapted to other systems as well. It consists of flexible tarpaulin sections with a robust and simple self-developed Velcro system.

Surface protection

Asbestos removal

Norisol offers a wide range of surface protection services. We have certified FROSIO inspectors in addition to operators with certificates of apprenticeship. We can deliver complete surveys with condition reports and maintenance programs. Our experience spans from small jobs at our prefabrication shop to massive offshore contracts.

Norisol has many years of experience within Asbestos removal. We are certified to work in both the UK and the Norwegian sector. We perform surveys and engineering and deliver workforces and equipment related to these services.

Norisol’ main services are: • • • • • • • • • • • • • • •

Cold insulation Heat insulation Sound insulation Fire insulation Sand blasting Painting Passive fire protection Metallisation Cold cutting Scaffolding construction Weather protection Access technology Ship outfitting Offshore fittings Interior

Engineering Within our core business Norisol offers skilled engineers with experience in their respective trades. The services can be performed integrated within the client’s organisation, or performed from one of our locations. Extended use of Integrated Operations and our video meeting systems will further enhance our collaboration with our customers.

Scaffolding With more than 25 years of experience from the Norwegian offshore sector, we have gained substantial experience and knowledge. We use patented aluminium system scaffolding from Alustar. This is a highly efficient system, weighing half as much as regular steel systems and being significantly stronger.

Furnishing and outfitting From our furniture factory located in Fredericia (Denmark), we can tailor make all kinds of furnishing for the offshore and maritime industry. Our team of experienced specialists can provide everything from small deliveries to turnkey projects.

Habitat Construction Norisol educate all employees involved in core team work offshore in construction of habitats whether these are been used as overpressure or under pressure units. These habitats can be installed with shutdown systems, or normal pressure units for working in normal conditions.

Decommission work Norisol participate in the shutdown of fields and decommissioning of entire fields. The company offers a wide range of decommissioning services as hazardous waste management, asbestos removal, cold cutting, scaffolding, habitats, rigging, rope access and surveying and management.

113

114

MMO

norsk stå l Norsk Stål is one of Norway’s leading suppliers of steel, aluminum and metals to the offshore industry. We have 270 employees across Norway who are eager to assist you with steel supplies to any offshore project. We also work towards the international marked.

Ph o n e : + 4 7 6 6 8 4 2 8 0 0

Norsk Stål Norsk Stål was established in 1823 and is one of Norway’s leading steel suppliers. An offshore project is neither too small nor too big; we will help you in your steel purchasing process. With 12 offices nationwide and warehouses strategically placed around the country, we can offer you on time and effective deliveries. Our offshore team is ready to assist you.

M a i l Ad D r e s s : PO B o x 1 2 3

w w w. n o r s k s t a a l . n o

NO - 1 3 7 8 N e s b r u , N o r w a y

A wide variety of quality multi metal products aimed towards the offshore industry

•

Professional expertise and long experience

Network

•

Norsk Stål has an international network of suppliers around the world, which enables us to deliver a wide variety of products. We work to optimize the flow of goods to you.

Our services:

Certification

•

Norsk Stål is NS-EN ISO 9001:2008 and OHSAS 18001:2007 certified. The certificates cover activities like stocking, distribution, processing and sales of steel, metals and aluminum. We offer processing such as shot blasting, painting and cutting of steel. Norsk Stål is qualified in the Achilles Joint Qualification System for suppliers to the oil industry.

NO - 1 3 9 5 H v a l s t a d , N o r w a y

firmapost@norskstaal.no

We offer: •

Close customer relation; key accounts

Straight sawing, mitre sawing, shot blasting, painting, plasma cutting, grinding, reinforcement cutting, bending, plate sawing, bar sawing, band sawing

•

Material certificates – own database

•

Road and ship transportation both nationally and internationally

A D d r e s s : N y e Va k å s v e i 8 0 ,

FAX : + 4 7 6 6 8 4 2 8 5 0

MMO

O LY M P U S N O R G E AS Leading edge testing technologies include remote visual inspection, microscopy, ultrasound, phased array, eddy current, eddy current array, X-ray fluorescence and diffraction, high speed video, and optical metrology. Our products include ultrasonic flaw detectors and thickness gages, videoscopes, borescopes, fiberscopes, microscopes, high speed video cameras, in-line and advanced nondestructive testing systems, XRF and XRD analyzers, interferometers, and a large selection of industrial scanners, probes, software programs, and instrument accessories.

Ph o n e : + 4 7 2 3 0 0 5 0 5 0 FAX : + 4 7 2 3 0 0 5 0 8 0

ADdress: KjelsĂĽsveien 168, 0884 Oslo

M AIL : a d m @ o l y m p u s . n o w w w. o l y m p u s . n o

Olympus instruments are used in industrial and research applications ranging from aerospace, power generation, petrochemical, manufacturing and automotive to consumer products. Olympus instruments contribute to the quality of products and add to the safety of infrastructure and facilities.

Ultrasonic Testing

Optical Metrology

A full range of ultrasonic (UT) flaw detectors with unmatched capabilities for locating discontinuities and other flaws.

Measuring microscopes provide non-contact geometric measurements of electronic devices and machined parts with a high-precision measuring table. 3D measuring laser microscopes are capable of making measurements with sub-micron accuracy

Phased Array Testing

Product Divisions:

Phased array (PA) instruments that produce accurate, detailed cross-sectional pictures of internal structures at fast inspection speeds.

Remote Visual

Eddy Current

Videoscope, fiberscopes, borescopes and turning tools. Our remote visual inspection videoscopes systems are designed to meet the demands of the modern industrial inspection environment. They offer portable and intelligent remote imaging solutions with a host of advanced, yet intuitive features, making them ideal remote visual inspection instruments.

Advanced eddy current (EC) flaw detectors that inspect metallic parts and perform highly reliable flaw detection of surface and near-surface defects.

High Speed Video The i-SPEED series of cameras builds on the Olympus reputation for image quality, utilizing years of unparalleled experience in digital image processing. Each camera in the range can be completely operated by the unique CDU, independent of a PC, and is solidly constructed from aluminium housing - making them extremely portable and ideal for a wide range of industrial applications.

Eddy Current Array Testing

Microscope Solutions Optical microscopes are microscopes that typically use visible light and a system of lenses to magnify images of small samples. Industrial microscopes incorporate many complex designs that aim to improve resolution and sample contrast.

Contact information in Norway:

Eddy current array (ECA) instruments that provide the ability to electronically drive and read eddy current sensors positioned side by side in the same probe assembly.

Remote Visual & High Speed Video Vidar Baklund - Product Manager RVI & HSV + 47 416 84 570 vidar.baklund@olympus.no

XRF and XRD Analysis

Non Destructive Testing Stein Lade - Product Manager NDT + 47 916 60 644 stein.lade@olympus.no

Innov-X XRF and XRD Analyzers provide qualitative and quantitative material characterization for detection, identification, Quality Control, process control, regulatory compliance and Research and Development for metals and alloys, mining and geology, scrap and recycling, environmental and consumer safety, academia, and general manufacturing.

Optical Metrology and Microscope Solutions Arne HĂ¸ibakk - Product Manager Microscopy + 47 951 74 500 arne.hoeibakk@olympus.no

115

116

MMO

OTER A ELEKTRO -Olje og Marine

We do reconstruction, maintenance and tablet manufacturing on a large number of installations worldwide. We also perform installations, maintenance and navigation equipment and complete control systems for emergency and safety equipment. Otera also have great expertise in drilling-related equipment.

Otera is among the nation's largest engineering contractors in the electrical- and energy industry. Otera also have operations in Sweden. We are 750 employees, generated sales of more than 1.4 billion in 2011 and aim to grow further. We are working on the design, development, operation and maintenance of electrical installations and technical infrastructure. OTERA Elektro Oil& Marine has strong communities for construction services for electric power, industrial, telecom, transportation, offshore/ marine, buildings and services, and emergency preparedness. Otera is a company in the Agder Energy Group and is an inclusive workplace.

We electrify the community The Norwegian market in energy and infrastructure is in significant change and growth. Otera understand market needs, and through partnerships and alliances, we provide technical services to continuously in accordance with this development. Otera deliver electrical-, automation- and instrumentation solutions to the marine- and oil industry. Our engineers and technicians have extensive experience and expertise in the subject. One of our strenghts is our focus on quality, safety

Gener al Manager

T e c h n i c a l Su p e r i n t e n d e n t

Arild WikĂ¸ren

S v e i n Te r j e B j e l l a n d

+ 47 911 5 6 8 49

+ 47 9 0 0 31 35 3

a r i l d .w i k o r e n @ o t e r a . n o w w w. o t e r a . n o

svein.terje.bjelland@otera.no

and implementation. We perform a total of projects, and we are the link between class companies and FMEA-bodies. Otera have proud professionals and project managers with extensive expertise.

Our customers confirm that we deliver the most cost-effective solutions and project models. We are known to

scramble on short notice and work quickly and purposefully to minimize downtime on ships and rigs. OTERA is part of the NODE-network in southern Norway, a world-leading cluster of oil-related activities.

MMO

P L E XX AS The Plexx group is a leading manufacturer and subcontractor of parts and products of plastic to Scandinavian and other European industry. We work with thermoplastics in three main areas: Engineering Plastics, Vacuumforming – ORS and Acrylics. We have factories in both Norway and Sweden, and a sales office in Denmark.

Ph o n e : + 4 7 6 9 3 6 0 4 7 0 FAX : + 4 7 6 9 3 6 0 4 7 1

ADdress: Måkeveien 6, 1 6 7 9 K r å k e r ø y, N o r w a y

E M AIL : k k @ p l e x x . n o w w w. p l e x x . n o

Plexx The company was established in 1954 specializing in processing thermoplastics. This is still our specialty. By continuous investment in new technology, we have become one of the leading manufacturers in the Nordic countries in processing thermoplastic materials.

Engineering Plastics Engineering plastics are a group of materials that exhibit superior mechanical and thermal properties in a wide range of conditions over, and above, more commonly used commodity plastics. In many instances, engineering plastics can replace metals. We supply machined parts from drawings.

The materials offer a wide range of properties, such as: •

Strength and rigidity

•

Durability

•

Wear resistance

•

Low friction

•

Chemical stability

•

Heat resistance

Vaccum forming – ORS (Opido Reinforcement System)

of applications where stability and low weight are deciding factors.

We combine heat and vaccum, in top modern machines, to form a thermoplastic sheet on a given tool. This method has some advantages:

Acrylics

•

Low tool costs

•

Big parts (up to 1,5x2,5m)

Extensive experience in acrylic displays We supply displays to many high street brands. Modern machinery for acrylic machining and forming means massive potential for creative solutions.

•

CNC machining means variation in details

Certification

•

Unique opportunity to reinforce by using

We are certified both on quality and environment by DNV after ISO 9001:2008 and ISO 14001:2004.

ORS

ORS Vacuum forming and polyurethane – the new strong combination. Its wide range of applications means that ORS technology is a key element of the range of options in plastic we can offer. Can be adapted to suit the desired purpose, and can be recycled, which is in line with our environmental policy. The technique involves injecting lightweight, expanding polyurethane (PUR) in a given number of layers to achieve the desired thickness. Fixing elements can be integrated in the strong, elastic material. That means we can build up insulating sandwich constructions, with a very wide range

We work with thermoplastics in three main areas: •

Machined parts - Engineering Plastics

•

Vacuumforming – ORS

•

Acrylics

117

118

MMO

P on P ower S candinavia

Pon Power Scandinavia is the authorized distributor of Cat and MaK engines and generators in Scandinavia. We offer engine systems, ranging from 6.4 to 16,200 kW, which are mainly used as propulsion or auxiliary engines, primary or emergency power and engines for fire-fighting pumps and cranes for offshore installations. All power modules are technically customized and designed to meet the stated requirements for ambient conditions, emissions and area classifications.

n o r way: + 4 7 2 3 1 7 0 5 0 0

w w w. p o n - c a t . c o m

Denmark: +45 3688 0100 S W E D EN : + 4 6 3 1 6 0 6 4 9 0

We offer exceptional operational reliability with 24-hour worldwide service and rapid delivery of original spare parts.

We offer a variety of special intallations:

•

Quick delivery of original spare parts

•

For hazardous areas (ATEX) – Zone II

•

Authorized Service Technicians for off-

Tomorrow’s power solutions today

•

Gensets with flexible mounts on the frame

(Genflex) for reduction in the vibration

Peace of mind for the life of your engine

level.

Customer Service Agreement – worldwide preventive repairs -Privileges and options for our customers

•

Rig upgrades to meet market tier demands

•

Dynamic Gas Blending options modulates

Your single source supplier for all power applications to the oil and gas industry. We combine the high quality of the Caterpillar engine with our customized technical solution to fit you and your needs.

•

Optimized operation

•

Minimized risk

•

Predictable costs

•

Engine status report

gas and diesel fuel intake for optimum performance and minimum costs.

•

Design

Maintain high performance and safety year after year.

•

Documentation

•

Test

•

Installation

•

Worldwide Service

Our employees are continuously educated in the latest developments from Caterpillar and the industry to stay updated within their field. You can always rely on our expertise in the increasingly complex fields of engine systems, electrical controls, safety regulations, documentation and market demands.

Tough – Tested – Trusted

shore and onshore jobs

•

24-hour worldwide service

Even though a CSA covers most aspects of maintenance, repair and power system operation, the primary goal of the contract is to share our expertise with you. This enables you to focus on what you do best – managing and growing your core business.

For any petroleum application, trust us to meet your exact needs. Pon Power Scandinavia is ISO 9001, 14001 and Achilles certified, illustrating our focus on quality, safety and environmental responsibility.

MMO

S canmatic AS Scanmatic; provides tailor made instrumentation and sensor technology applications.

Ph o n e : + 4 7 3 7 0 5 9 5 0 0 fa x : + 4 7 3 7 0 3 4 6 7 8

ADdress: Kilsund, 4920 Staubø, Arendal, Nor way

company@scanmatic.no w w w. s c a n m a t i c . n o

(Camera , RFID and streaming technology)

We offer:

•

Development projects (HW/SW)

Heading Control System (Gyro system)

•

Pre studies

Scanmatic supplies turnkey solutions securing design, development, engineering, project management, purchase and system supply including documentation packages as well as necessary regulatory approvals and classification society’s compliances in complex offshore instrumentation and related development projects.

•

Prototypes

•

Integration projects

•

Finished product

•

Our Services:

•

Engineering

•

System design

& control system (Scada & sensors)

Scanmatic works in compliance with ISO9001:2008 and is certified through Achilles JQS

•

Logistics & production

Archer: Atex Zone 1 wireless remote con-

Contact:

•

Installation & commissioning

trol system (radio and Ex technology)

Contact our office for further information and get directed to competent technical sales personnel.

•

Service & support

Statoil ASA: Navigation Assistance System

•

Operation & Maintenance

for Lifeboats (Autonomous Gyro System)

•

Consulting assignments

Scanmatic is a technology company utilising cutting edge multidisciplinary engineering competence within sensor technology and data acquisition to design and supply tailor made instrumentation, monitoring & control and communications applications specialised for Oil & Gas as well as marine environment. Our applications are mostly evolving from instrumentation and sensor technology, and we have a wide delivery of solutions and services within system integration, SCADA systems, control systems, data communication and -acquisition.

Applications supplied: •

•

Stolt Offshore LB200: Remote monitoring

National Oilwell Warco: ATEX zone 1 Internal and External Hose monitoring system

Bluewater:

AEx Turntable / Riser Buoy

Certifications:

119

120

MMO

S P T ools AS SP Tools AS is located in Bergen since 1993. We are a supplier for on/offshore Industry Oil and gas, top side /Sub sea, power industry, high quality hand tools, hydraulic tools, torque tools, Tension tools, pumps, nut splitters, and more. SP Tools also offer Training, Engineering, Rental, Service and Calibration.

Ph o n e : + 4 7 5 3 6 9 5 3 5 3 FAX : + 4 7 5 3 6 9 5 3 5 4

ADdress: Hardanger veien 72 , Mid tu n , 52 24 N es t tu n

E M AIL : i n f o @ s p t o o l s . n o

M a i l Ad D r e s s : PO B o x 1 4 1

w w w. s p t o o l s . n o

Midtun, N-5828 Bergen

Training

SPX BOLTING SYSTEMS

SP Tools AS offers Bolting/Flange Training, work. Accordingly to OLF code 118, in cooperation with the Bergen Ekspertisesenter AS

Full range bolting products, sale, service rental, flange bolt training course, engineering. We also offer flange management software ADVISER and CONTROLER provider to the Oil & Gas and Power Generation Industries. With over 35 years experience manufacturing power packs through our sister company Power Team, and now with the acquisition of Torque Tension Systems, Ltd., UK, we have over 70 years combined experience in flanged bolted connections. We are focused on the market and our customer base to provide the best tooling, bolting solutions and support the industry offers

Engineering/Personnel SP Tools AS Offers engineering service, special solutions, special design tools, top side or subsea, qualified bolting personnel etc.

Rental SP Tools AS Offers rental service for shorter or longer period as well as rent to buy hydraulic tools, torque tools, tension tools, pumps and more

Service / Calibration SP Tools AS Offers service and calibration of all types of torque tools, tension tools, gauges etc. as well as service of high pressure pumps, high pressure hydraulic tools, high pressure cylinder. We also have test bench for tensioning tool.

BRANDS: SPX POWER TEAM High pressure hydraulic jacks, hydraulic tools, hydraulic pumps, valves, high pressure hoses and hydraulic high pressure accessories. CEJN Ultra high pressure fittings, hoses quick connectors etc.

SPX OFFERS LIFE TIME WARANTY ON ALL TOOLS.

RAD Constant rotating torque tool, air type, electrical type, electronic and battery torque bolting tool solution all tools with various speed selection and customer designed solution. GEDORE quality tools Âť Made in GermanyÂŤ since 1919. Hand held torque wrenches, torque multipliers, torque testing / calibration devices. Full range of NONE SPARKELING TOOLS. GEDORE Quality general hand tools, cabinets, work shop equipment, big sizes striking tools sockets etc. all for professional users.

MMO

S T S - gruppen StS gruppen is one of the leading suppliers in Norway providing multidisciplinary services within maintenance and modification. The company offers a comprehensive service range in the field of Surface Treatment, Insulation and Scaffolding as well as Rigging, NDT (NonDestructive Testing) and RAT (Rope Access Techniques). In addition, StS gruppen is a globally recognised provider of positive pressure habitats that allow the execution of hot work in areas otherwise considered as hazardous.

Ph o n e : + 4 7 5 5 2 0 8 0 0 0 FAX : + 4 7 5 5 2 0 8 0 0 1

ADdress: Kanalveien 52, 5068 Bergen, Norway

f i r m a p o s t @ s t s g r u p p e n . c o m M a i l Ad D r e s s : PO B o x 6 0 8 5 w w w. s t s g r u p p e n . c o m B e d r i f t s s e n t e r, 5 8 9 2 B e r g e n

StS gruppen Since the foundation of the company in 1972, StS gruppen has strived to provide first class services to the construction and the oil & gas industry. The business area of the company has continually grown in response to market demands and comprises today of the complete range of ISS services (Insulation and outfitting, Surface Treatment including Passive Fire Protection, and Scaffolding) as well as rigging, industrial rope access, inspection, NDT and engineering services. In addition, StS gruppen provides a full array of insulation products, and the company is successfully exporting its advanced series of positive pressure habitats.

Insulation products StS gruppen has developed its own ranges of insulation products - ansaDur and ansaTekt. ansaTekt comprises of thermal insulation products such as insulation boxes and jackets while the ansaDur series consists of acoustic insulation products. The newest addition to the ansaDur range is a noise reduction panels system - a lightweight, space saving, reusable and effective sound barrier developed specifically for use offshore.

StS habitats â&#x20AC;&#x201C; safe solutions for hot work. StS gruppen has been the mainspring behind the development of flexible positive pressure

habitats. Since the company presented the first prototype in 1997, StS gruppen has continuously worked on improving both functionality and safety features of the habitats. In close cooperation with its suppliers, StS gruppen has developed the most advanced control system for habitats available worldwide, enabling the simultaneous operation of multiple habitats. StS habitats can also be equipped with a unique battery backup system. In case of a power failure, the UPS unit takes over the operation of the fans for up to 30 minutes thus ensuring the continuation of the positive pressure in the habitat which is the most important safety feature of hot work enclosures.

121

Products | Solutions | Services

Expertise in motion, since 1949 Lönne is recognized as a leading supplier within drives, controls and power transmissions for rotating machinery and solutions. As one of Europe’s larger of it’s kind, Lönne Warehouse in Helsingborg carries a broad variety within electric motors, frequency inverters, bearings, gear boxes, driving belts, couplings, chains with more. Recently,The Lönne Group has expanded with more technical departments, to better serve the MRO, marine, industrial and in particular the offshore market.

Brake motor for deck machinery, supplied to Aker Solutions Pusnes

Meet us at ONS, SMM, OTD and Nor- Shipping!

Planetary gear boxes on stock, for marine and offshore environments.

Flameproof motors , EEx-d, EEx-de, IB, IIC on stock for marine and offshore environment. Optional with brake, encoder and external cooling.

Design and engineering of drives on customer’s specifications, also with complete control systems. Mounted and tested at Lönne Workshops.

Keeps your machinery running! Lönne Scandinavia AS | HQ Liamyrane 12, N-5132 Nyborg, Bergen | Tel: +47 55 39 10 00 | www.lonne.com

Foto: www.colourbox.com

We give you power in Logistics Bring finds new ways to tailor-made Offshore and Energy Logistics solutions for the world’s most demanding customers. We have done so since the early 1970s, fulfilling the toughest standards and customer requirements with a comprehensive range of logistical solutions in: • Project Management and Freight Forwarding • Supply Base Services • Ships Agency Our global network is at your disposal, in every energy center in the world.

Zwijndrecht

What can we do for you? Norway Tel: +47 55 55 72 00 E-mail: offshoresales @bring.com

Aberdeen Tel: +44 1224 59 65 65 E-mail: bringcargo. aberdeen.uk@bring.com

The Netherlands Tel: +31 78 61 00 030 E-mail: bringcargo. sales.nl@bring.com

Houston Tel: +1 281 442 8883 E-Mail: info@bringusa. com

bring.com/offshore

www.kurergrafisk.no

NORWAY`S LEADING MANUFACTURER OF INDUSTRIAL ELECTRIC HEATING

CUSTOMIZED HEATING PRODUCTS Norske Backer is a manufacturer and turnkey supplier of heating products for land-based industry and offshore companies. Much of our capacity involves production of customized special products made to customer specifications. In other words, we handle the entire process, from defining requirement to designing and producing the product, with short delivery times.

witch the customer can approve. Our engineers have the experience, skills and ability to understand customer needs, and develop the ideal solution. When the final product has been defined, we begin to customize production. To ensure close relationships with our customers is a vital part of the companyâ&#x20AC;&#x2122;s philosophy. We want to be available when the customer needs us in the knowledge that the time factor is usually of the essence when the unexpected happens.

40 years experience makes us a leader in our field, and a natural partner within the industry. Our factories in Kongsvinger and Moss have a total workforce of 44, and a turnover of NOK 64 million p.a. Norske Backer is also a vendor of most types of heating elements for ovens, hot water heaters, engine heaters and radiators throughout Norway. Other products we handle include water heaters, brake resistors and tool/equipment heaters. We are ISO/ATEX certified.

OIL AND GAS We specialize in offshore work, and supply heating elements for indoor heating, gas turbines and hydraulic gear on platforms. We are marked leaders within product development, specializing within heating products and working in high explosion-risk areas. We are a preferred vendor primarily because of quality and service. Many of our customers turned to us because they have found it pays to choose us rather than cheaper alternatives.

INNOVATIVE AND LOCAL Innovation is a vital part of our company culture, and we put a lot of effort into the development of new and improved products. By working close to our markets we have built up a considerable understanding of current and future needs, enabling us to remain at the forefront of development. In close consultation with the customer, we tackle problems, analyze requirement and prepare a proposal accordingly

SKILLS We believe strongly in specialist skills at all levels, enabling us to communicate across the board with the customer, understand their needs and act a natural consultant and partner. Doing so provides reassurance. Our employees are trained engineers with experience within sales, design and production â&#x20AC;&#x201C; to ensure quality throughout the entire process.

You are welcome to contact us for more information by phone no + 47 62 82 88 28 or marked@norskebacker.no Norske Backer AS Norske Backer AS Jostein Svendheims vei 8-10, 2212 Kongsvinger

Telefon: 62 82 88 28 Fax: 62 81 74 56 marked@norskebacker.no www.norskebacker.no

YOUR SHORTER ROUTE TO BIGGER PROFITS IS NOW EVEN SHORTER

Wärtsilä is passionate about optimising lifecycle value by delivering whatever you need from the only total offering in the business. And our merger with Hamworthy has now made the best offering even better. Let’s work together to help you find the shortest route to bigger profits. www.wartsila.com

08/

Decommissioning The next market

128

decom

First Minister Alex Salmond is welcomed to AF Group headquarters, Oslo, by Chief Executive Pål Egil Ronn

All set for the North Sea Decom boom Aiming for another NOK250 billion in the UK. In addition to the NOK160 billons in Norway the decommissioning market on the British continental shelf will grow to NOK250 until 2040. AF Decom is all set to win major parts of this.

opportunities in communities such as Shetland, he continued.

Supported by NOK93 million

Major plans

They have entered into a contract with Lerwick Port Authority of developing a deepwater quay facility at Dales Voe, Lerwick, Shetland, as a decommissioning centre capable of meeting the growing UK requirement for the decommissioning of major structures located in the Northern North Sea. In May 2012 First Minister Alex Salmond announced a £10 million funding package to support the plans in Shetland. The Scottish Government and Highlands and Islands Enterprise (HIE) would each make up to £5 million available to support the ambitious project, which will create in the region of 150 new jobs in Shetland and Aberdeen at its peak activity. LPA signed an exclusivity agreement with the Norwegian AF Decom Offshore UK in 2010 to develop the project, which aims to establish a centre of excellence at Dales Voe, incorporating a 24-metre deep quay and oil rig decommissioning yard, to provide a scale of capacity and environmental standard currently unmatched in the UK.

- The AF Group is pleased with the support and co-operation from the Scottish Government and HIE in our company’s long-range and major investment plans up at Shetland. AF wish to bring our experience from development and operations of similar business in Norway, to develop a unique site when it comes to operational and environmental standard for the UK market, said CEO AF Gruppen Pål Egil Rønn.

Important role - North Sea oil and gas remains a huge economic driver, both for the UK and for Scotland. With as much as £1.5 trillion worth of reserves still remaining to be extracted, alongside increasing export activities from Scottish firms, it will continue to play an important role in Scotland’s economy well into the middle of this century, Alex Salmond said. - Decommissioning is an increasingly important activity for companies in Scotland, Norway and elsewhere. I’m determined that the Scottish Government and our enterprise agencies will do everything we can to support the continued success of the industry in Scotland - to create jobs, promote economic activity in the oil & gas supply chain and encourage skills development and wider

- Lerwick has already established itself as one of the main deep-water harbours in the Northern North Sea, with extensive experience in the offshore oil and gas and decommissioning sectors. I was pleased to meet with Lerwick Port Authority and the AF Group representatives to discuss their ambitious plans and delighted to be able to confirm that we are making up to £10 million available for their ambitious deep-water quay project, The First Minister commented.

decom

The concrete facilities According to a report from the Norwegian Petroleum Directorate (NPD) there are 12 concrete facilities resting on the seabed on the Norwegian shelf. Ten of these are currently in operation, while two have been shut down and abandoned on site. The Ekofisk T and Frigg TCP2 concrete facilities have been abandoned on site after removal of the topsides. The ten operating concrete facilities on the seabed are located in the North Sea and the Norwegian Sea, Oseberg A, Troll A, Gullfaks A, B and C and Statfjord A, B and C are located in the northern part of the North Sea, Frigg TCP2 and Sleipner A are in the central part, while Ekofisk T with its barrier wall is in the southern part of the North Sea. Draugen A is in the Norwegian Sea. There are also two floating concrete facilities, Troll B and Heidrun A, located in the northern part of the North Sea and in the Norwegian Sea.

NCS Decom market worth NOK160 billion The current estimates of removing 550 North Sea offshore installations gives huge business opportunities. As the installations on the Norwegian continental shelf are ageing, the removal and recycling become an increasingly important business area. A report from the Climate and Pollution Agency outlines that the projected decommissioning volumes up to 2020 will be about 50.000-80.000 tons of steel per year.

Uncertain timing After this, the market will grow strongly. - Around 2020, there is expected to be a steep increase, so that about 200.000 tons of steel a year will need to be dismantled and recycled. At this stage, it may be appropriate to establish new decommissioning facilities. There is a great deal of uncertainty associated with the timing of decommissioning of installations from the different fields. This depends on many factors, including oil prices, maintenance costs and the development of new technology for extracting oil and gas. The trend today is for the lifetimes of fields and installations to be extended beyond what was originally planned, the report concludes.

Estimating the market size So, how much is this going to cost? There is a long list of uncertainties when it comes to answer this question. But the CPA report has a preliminary estimate at about NOK 160 billion. This estimate does not include the removal of fixed concrete substructures, since the costs of this are very uncertain at present. The costs will depend among other things on general cost trends in the industry and when decommissioning projects start. - Steel installations should be dismantled and recycled since they consist largely of high-quality steel, which can be profitably recycled at present. In addition, it is sound environmental and resource policy to clean up industrial sites once activities have ceased.

Up to 98 percent back All the upcoming projects are forming a huge potential market for decommissioning players like AF Decom. The company has performed these services at Ekofisk. - The AF Group aims to capture a significant share of this market. We have built up experience and expertise also needed internationally. "For example, the AF Group has been awarded contracts for the removal of nine platforms in the Ekofisk field and we have an agreement with Statoil for the demolition and reclamation of a riser platform," says director Bengt Hildisch in AF Decom Offshore. - For society, it is profitable that we bring the discarded material back into circulation. AF's mission for ConocoPhillips is a good example; 98 percent of the steel in the Ekofisk tank was melted into other steel products, he says.

129

130

decom

AF Decom Offshore AS claims to have established the most modern and advanced site in Europe on the west coast of Norway for decommissioning of offshore installations. The yard at Vats i about 68.000 m2 and has 180 meter of key front with 23 meter water depth

A growing market - increasing capacity Both the market segment and the onshore capacity for decommissioning of oil installations in Norway will continue to grow in the next decade. Today four facilities have permits to decommission offshore installations from the NCS. According to a report from the Climate and Pollution Agency (CPA) there will be sufficient capacity in Norway to handle the installations from the Norwegian Continental Shelf that are expected to be decommissioned in the next ten years.

60,000 tons - so far The total weight of the structures received for decommissioning in the past five years at the AF Miljøbase facility at Vats is about 60.000 tonnes. Under the terms of the permit, from 2009, up to 50 000 tonnes of waste may be stored at the decommissioning yard. AF Decom has a contract with ConocoPhillips for the removal and decommissioning of several installations from Ekofisk in the next years. The company also has a contract with Shell to remove and decommission six platforms from the Inde field in the British sector of the North Sea. The company has also been awarded the contract for removal and recycling of the B11 compression platform on the Norpipe system, located in the German sector of the North Sea, and operated by Statoil on behalf of Gassco.

Cooperation on Frigg job Aker Stord and Scanmet have been cooperating on the decommissioning of structures from the Frigg field. Aker Stord is the contractor to which the offshore installations are delivered, and Scanmet AS is a subcontractor. Hazardous waste is delivered to SIM næring AS, which is located in the same industrial complex. In 2009, Aker Stord took delivery of about 30 000 tonnes of offshore material, about 36 tonnes of which was hazardous waste. Scanmet AS has a contract to decommission the floating loading platform Draugen FLP with a weight of 4.600 tonnes. Aker Stord/Scanmet have previously decommissioned installations from Odin and Maureen Alpha and the Brent flare structure.

- A growing need Lyngdal Recycling has a permit to decommission marine structures, which includes limits for releases to water and noise levels. It has decommissioned two large installations in 2003–04. The company expects to be involved in such projects in the future, and believes that there will be a growing need for decommissioning facilities, the reports claims.

decom

From UK to Norway? - After 2020, more installations will be transported onshore for decommissioning, and the establishment of new decommissioning facilities, preferably further north, should be considered. It is uncertain how many installations may be imported to Norway for decommissioning from the British sector or other oil-producing North Sea countries. A DNV report from 2002 concluded that existing decommissioning capacity in Norway was 160.000 tonnes per year, which at the time meant there was considerable surplus capacity. However, a number of the facilities considered in the report are no longer operating. Several of the facilities now being used as decommissioning yards have previously built offshore installations. If Norway needs to expand its decommissioning capacity, it is likely that other facilities of this kind that are in suitable locations and have deep-water quays can be adapted as decommissioning yards.

Satisfactory capacity - The existing facilities appear to provide satisfactory decommissioning capacity for the next few years. The level of activity at these facilities also depends on the supply of installations for decommissioning, which varies from one year to another and during a year. This can make it difficult to plan how much labour is needed, and the situation can be so unpredictable for the companies that workers sometimes have to be laid off. If the volume of work is too unpredictable, it can also be difficult to maintain a large enough workforce with the necessary expertise, the report concludes. As the volume of installations to be decommissioned increases in the years ahead, a few more decommissioning yards may be needed in Norway. The report also points to the north, in the longer terms. - These yards should preferably be situated further north, where they are suitably located to deal with installations from the Norwegian Sea and in the longer term from the Barents Sea.

131

132

decom

Huldra, in the North Sea, could be shut down in 2014

Huldra in 2014 The Huldra partnership, with operator Statoil, plans to shut down the Huldra field north of Oseberg in the North Sea in 2014. Previously discussed plans for reuse of the platform deck in the development of the Valemon field have been rejected. - The possibilities for reuse of Huldra facility has been thoroughly evaluated, but so far we have failed to find such a solution.

Will use gas pipeline

Several fields close to the end Both Volve and Tune are planned for production to end in 2014 Statoil is working hard to maximize production on the Norwegian

Huldra's gas pipeline however can be used when Valemon is developed. - The production is now declining, and according to current plans, production will end in 2014, Statoil writes. - The NPD will be concerned that all economically profitable resources are being produced before fields close down. Huldra will be no exception in this aspect. There will always be an uncertainty associated with the production from the field, also in the end phase, and thus the shutdown time, says Thomas MĂ¸rch of the NPD.

First without regular staffing Huldra once made history as the first Statoil-operated field without permanent staff, with management from the Veslefrikk B platform. The gas and condensate field was developed with a wellhead platform and began production in November 2001.

Continental Shelf, and rapid development of small fields close to existing infrastructure is one of the main areas. At the same time some fields are coming closer the end of production. Government documents show that Statoil is now working on plans for shutting down two smaller fields around 2014, Volve and Tune. In addition, it is also signalled that the Statfjord A platform can be shut down in 2016. The partnership at Huldra has also indicated shut down in 2014. Field licence partneres are required to develop a plan for completion of a field 2-5 years before the use of the facility is terminated. So it is this work that has now has started on the four above-mentioned fields. While Tune is a subsea facility, Volve produces using the rig MĂŚrsk Inspirer and the storage vessel Navion Saga.

200,000 tons of concrete Statfjord A, with a concrete substructure that weighs over 200,000 tons, thus represents the greatest challenge when it comes to removal and possible recycling. - The concrete substructure is not designed to be removed. Still there will be technical studies carried out to examine whether it can be removed within an acceptable risk level. If the concrete substructure cannot be removed, this has to be abandoned after completion of the necessary closing activities. This will require a consultation in the OSPAR countries, Statoils writes in the impact assessment programme for Statfjord A. Basically it is illegal to leave offshore facilities, but OSPAR regulations allow for exceptions for steel jacket heavier than 10,000 tons and concrete installations.

Statfjord A may be shut down in 2016

decom

133

09/

Oil Companies

Newcomers make their mark

136

OIL CO M PANIES

The Norwegian Petroleum Directorate in Stavanger

Introduction In the early 2000s Norway went on an international road trip to attract new oil companies. This proved very successful, and the country has since seen a string of newcomers, often referred to as “minnows”. This is often, however, quite a wrong description, as some of these are Norwegian branches of large international operators with deep pockets. Some of the newcomers disappeared, or has been swallowed by other companies, but the majority of the remaining international operators have very long-lasting perspectives, and, more than likely, are here to stay. It is interesting that almost all larger gas consuming countries from Europe have established branches in Norway to secure a future steady stream of gas, thus working towards less dependence on Russian supply. Denmark is represented by Dong and Mærsk Oil, Germany by Bayerngas and E. On Ruhrgas, Poland by PgNig, France by Gaz de France, the UK by Centrica and BG, Austria by OMV, and Italy by Edison.

OIL CO M PANIES

Oil Field Operator Chart Talisman Energy Norge (3.8%)

Total E&P Norge (3.8%)

DET Norske (3.1%) Norske Shell (3.1%) Exxon Mobil (3.1%)

BP Norge (4.6%) 4

Conoco Phillips (6.9%)

6 9

BG Norge, Lundin Norway, Marathon Oil Norge, Wintershall (2.3% each)

Other

DONG E&P Norge, Eni Norge, RWE-DEA (1.5% each)

Centrica, CNR International, Det Norske Oljeselskap, Dong E&P Norge, GDF Suez E&P Norge, Lundin Petroleum, Maersk Oil Norway AS, Marathon Oil Norge AS, Suncor, Talisman North Sea, Total E&P (0.8% each)

Statoil (49.2%)

KEY

Number of operating oil fields

Source: Offshore.no. Operatorship, producing, PDO-approved, future and closed-down field on the NCS.

137

138

OIL CO M PANIES

Kjell Pedersen, head of Petoro

Petoro Petoro believes in multiple elephant discoveries. The chief of Petoro, Kjell Pedersen has told OMG that they still have their main focus on increasing production of mature fields, but that the optimism has changed after the two major discoveries in the Barents Sea and the North Sea last year. “Our focus has not changed because of the new discoveries, but we have been given an extra task in developing the new findings that we are not unhappy to have been given”, he says, adding that these new discoveries will increase the investments in exploration for new major discoveries in the Arctic: “I think the Barents region will now have a renaissance. There are probably also good opportunities in the deep waters in the Norwegian Sea, where exploration has not taken off yet. That said, the major discovery Johan Sverdrup was made last year in the North Sea, where there have been many wells drilled before. We did not expect this, and we are glad we were wrong”. The Norwegian Petroleum Directorate believes that the deep-water areas far west in the Norwegian Sea may be the most prospective exploration area on the Norwegian shelf. “To explore this area we need a consortium of companies, called the Force, to drill a series of shallow wells, up to 200 meters depth, in order to identify opportunities for discovery. We see that there are hydrocarbons, but it is below the lava layers in the Norwegian Sea, the so-called sub-basalt layers”, says Director General Bente Nyland in the NPD to OMG. In recent years, the American companies ExxonMobil and Chevron have secured a large area west of the Norwegian Sea through the awards in 20th and 21st licensing rounds.The duo has won two of the biggest blocks on the Norwegian continental shelf in the same area, respectively, PL520 (about 3,000 square kilometers) and 527 (approximately 3600 square kilometers). By comparison, Rogaland county is around 9400 square kilometers. Several of the major oil companies on the Norwegian continental shelf drilled several exploration wells in the Norwegian Sea about ten years ago. Most were big disappointments, and as a direct consequence, Norway had to write down its predicted hydrocarbon reserves. Since then, operators have only been drilling sporadic wells. However, it is thus in deeper water, farther west in the Norwegian Sea that the hope remain for finding the really big reserves.

OIL CO M PANIES

More exploration Jeppesen also has more going on. The company he runs has been active in licensing rounds and has been awarded a number of new exploration areas: “We have received seven new licenses in the latest APA-round and we now have six separate operating licenses, and we are involved in 13 other licenses on the Norwegian shelf. The licenses we have received are also in the Norwegian Sea”, Jeppesen says, adding that: “Currently we are concentrating on areas of shallow water in the Norwegian Sea where there is less risk. We believe in the Norwegian Sea and the areas around the Utsira High, however. We will also be active in upcoming licensing rounds, and will nominate areas in the Barents Sea”.

Transocean Arctic

Maersk Working towards a new gas-cluster in the Norwegian Sea Maersk Oil Norway continues this year's drilling activity in the Norwegian Sea with the prospect Albert, currently being drilled with the Transocean Arctic. The hope is to discover new gas reserves and participate in site development and it could bring major new investments in infrastructure: “In 2012 we will drill a well operated in the Norwegian Sea in PL 513 on the prospect Albert, with Dana Petroleum as partner with the rig Transocean Barents. This is a very exciting well, the prospect is just north of the Victoria discovery”, says the boss in Norway of Maersk Oil, Morten W. Jeppesen to OMG. There have been a number of gas discoveries made in the Norwegian Sea, and yet it is Statoil's Luva discovery and Shells Linnorm discovery, which are considered to be the bearers of the necessary infrastructure in the form of a new gas pipeline to the Nyhamna plant on land. In addition to Statoil and Shell, RWE Dea has its discovery Zidane and BP, which has taken a part in Victoria, as a stakeholder.

Large joint effort and time again There are also a number of companies that are working to expand and identify new resources in the Norwegian Sea. Gassco, which operates the Norwegian gas network, has prepared a report that points to the need for a new gas pipeline. Among other things, the report points out that a new pipeline from the Barents Sea could be operational in 2020, and should have relatively high capacity to accommodate potential new volumes. Transport solutions for gas from the Norwegian Sea should take into account the potential output of undiscovered resources. This will mean tens of billions of NOK in new investments. Luva thus has sufficient reserves to be developed, but there are also several other smaller discoveries in the area that probably will be developed more or less simultaneously. The discoveries Haklang, Snefrid and Asterix are also in this area. However, Shell also has the discovery Gro in the Norwegian Sea, but recently decided to hand in this license to the authorities. Also the development of Total's Victoria discovery is more uncertain, and field development here will be further ahead in time, probably well into the 2020's, OMG hears.

Maersk Oil, like all the other oil companies, needs more engineers, and it has launched a sceme that secures firm employment from day one. The company, with the Norwegian head office at Forus, is a partner in the giant discovery Johan Sverdrup in the North Sea, and needs more people. To attract young people, it has a trainee programme called "MITAS": “We have a program called MITAS, which stands for Mæersk International Technology and Science programme, where we employ newly qualified geologists and engineers. Our programme is very popular among Norwegian students. What distinguishes our programme from many others is that with us they become permanent employees from day one”, says Jeppesen. After the appointment, the new employees work in different places in the world for 24 months and spend eight months in each location. According to Jeppesen, nine out of ten choose to remain in Maersk after this period. In total, there have been 302 new employees in this programme. “The past year has been very exciting, we have 20 percent of the license 501, which Lundin operates and which contains part of the great Johan Sverdrup discovery. Now we work a lot with this. Therefore we need a mixture of sub-surface-employees, in business development and people development skills”. Mærsk Norway is now 60 employees but the company also draws man power from the company's head office in Copenhagen. “We have increased our staff by 20 percent in a year, because we have been, and will be very active in exploration. But, it's Johan Sverdrup that takes a lot of focus now, and we have much experience in the field developments from Danish waters. We are in the fortunate position that we can draw on our offices in Copenhagen and Aberdeen”, Jeppesen says. Maersk Oil was established in 1962 and has since 2003 had interests in Norway through the ownership of parts of the licenses on the Norwegian shelf. At first this was managed from Denmark. So it was decided to invest more in Norway, with a subsequent establishment of an office in Stavanger. Maersk Oil has since 2005 had a global strategy for growth beyond its traditional areas in Denmark, Qatar and Algeria. The goal is to become a global company and as part of this, Maersk Oil acquired, Kerr McGee North Sea interests in the UK in 2004. In addition, the company is now particularly active in Brazil, Mexico and Angola.The company is among the 30 largest independent companies in the world.

139

140

OIL CO M PANIES

Torstein Sannes, head of Lundin Norway

Lundin Lundin doubles work force Lundin Petroleum has a very good discovery record. Now the company need far more people. Most people think of Lundin as a Swedish company. It was originally started by Adolf H. Lundin Swede and is registered on the Stockholm Stock Exchange. But the main office is in Geneva, where the entrepreneur's heirs live. It´s oil fields are distributed in nine countries and the turnover is the largest in Norway. By far. “70 percent of Lundin's activities are on the Norwegian shelf”, says managing director of Lundin Norway, Torstein Sannes. He welcomes OMG at his Lysaker office where his 130 employees and 60 consultants are spread over several floors and wings. “There's plenty of space. We do not need new facilities, even if we are to expand the staff to around 300 people”, declares Sannes. Lundin is a young company in Norway, led by old hands retired from Statoil. First, in 2004 they started on the Norwegian continental shelf. Old data was retrieved from the Petro Bank - which is available to everyone - and reinterpreted. In just a couple of months they had drawn up a new strategy which were to apply for licenses where it was possible to drill quickly. And the strategy was successful: Lundin got licenses and has so far found 820 million barrels of oil. “Today we are only an exploration and drilling organization. The next step is to build an operational organization”, says Sannes. During the eighteen months to Lundin recruit people to work on both the platform and on land. Despite the tight labor market, Sannes believe that Lundin can pick and choose among applicants. “We have fun operator tasks that people want to work with, and is a small organization”. Lundin is the operator of the Luno field and aim to start production there in the autumn of 2015. In addition, the company is the operator of Brynhild, and the license 501 - half of the giant Johan Sverdrup, already described as one of the three largest discoveries on the Norwegian shelf. On top goes a drilling campaign to find more. “We will drill ten to twelve wells per year, and is the second largest

exploration operator on the Norwegian continental shelf, according to Statoil. With continuous exploration, we get access to people”, says Sannes. Sanness is proud of its ability to find oil, though it still is called a minnow. “Sverdrup was the largest oil discovery last year, and it makes us look good. We are a small company without much bureaucracy, and employees will participate and make decisions. People appreciate that and this is an obvious competitive advantage in the pursuit of new people”.

2 billion NOK in 2012 According to Sannes, what differentiates them from other minnow operating on the NCS, is the fact that their turnower is high: “If you take our key and compares with other companies, you will see a huge turnover and activity per head. We are looking for over two billion NOK in 2012. And is about to place orders on the Luno alone for 24 billion by 2015. Last year we had a revenue of six billion, and it means that we are the only one of the little ones who pay tax.

OIL CO M PANIES

Draugen still important According to Hustad, there is also much focus on increased production in Shell. New developments in the Norwegian Sea can provide extended life for the mature Draugen field: “Draugen is still important, and what we learned during the development of the field in the 90's, with contact with local people and local businesses, has been useful for us. The original plans were to shut down the field next year, but now we are working on new projects that will provide significant life extension and additional production. We expect to achieve over 70 percent recovery rate, which is probably up against a world record for an oil field. Shell is a major international company, and it wants to be making major new discoveries on the Norwegian Continental Shelf, where we can provide technology and expertise in both development and production phase. We are committed to optimizing our existing fields and infrastructure, and we also want to focus on further exploration of these areas”, says Hustad.

Shell NOK 70 billion in investments Here is the next major investment on the Norwegian shelf. A number of oil companies on the Norwegian shelf are working to implement several new field developments and new infrastructure in the Norwegian Sea. A / S Norwegian Shell will invest some NOK 70 billion as an operator if all its projects are finalised. This sum includes the development of the Linnorm field, expansion of gas processing plant at Nyhamna where the gas from the Ormen Lange is being processed, rebuilding and extending the life of the Draugen field, a large and comprehensive compression project on Ormen Lange and new production wells and infrastructure in the Draugen and Ormen Lange fields. “Total, Shell, on behalf of partners plan make investments of up to NOK 70 billion in mid-Norway in the coming years. This includes extensions Nyhamna compression project at the Ormen Lange, development of Linnorm and upgrades on Draugen. In addition comes the investments we make as a partner in other fields and infrastructure on the Norwegian shelf. This will come in the next three to five years”, says Per-Olaf Hustad, director of upstream in Norwegian Shell. Hustad points out, however, that all investment decisions are not taken yet. An investment decision on Linnorm is be made in early 2013. It is a demanding field and must be developed together to defend investments in infrastructure: “Linnorm is a demanding field, so there is no guarantee that there will be a reality, but that's what we and partners are working towards”. According to Hustad, these projects will keep large parts of Shell Norway engaged for a long time: “We have an exciting project portfolio. This alone will keep us busy for the next ten years or longer, and these fields will produce for decades thereafter”. This is especially good news for suppliers in central Norway, Shell wants to go with both locals as well as major suppliers who have established themselves here, he maintains: “We have been present in Central Norway a long time and have learned a lot. We see that it is important to use local suppliers. As we move more of the activity north, we want to contribute to the smaller, local providers so that they are put in a position to meet our requirements. We demand of our main suppliers that they, in turn, take this further with their own suppliers”.

Shell has completed an assessment of the northern waters in the Barents Sea, according to Hustad: “We are interested in the Barents Sea and we have completed an assessment of the northern regions to identify opportunities as we continue to work with them. We are also interested in participating in the exploration outside Lofoten and Vesterålen, when the authorities eventually decide to open these areas. It is important to have a certain continuity in the project portfolio so that we may retain qualified workers. Now we would like to see that we have more people locally, but we can now draw on Shell International for access to the expertise we need. In large projects, we can use our capacity and experience in large and technically demanding projects”, he says.

141

142

OIL CO M PANIES

TLP modell, courtesy OLF

Statoil NOK 145 billion in sanctioned projects Anders Opedal senior vice president for procurement in Statoil, told O&E that they have a project portfolio worth NOK 145 billion. And, notably, this is for projects that have been adopted, or sanctioned. In addition, Statoil has a number of projects that are still being matured. “It's difficult to give exact investment figures for several of the larger projects that are being developed. The project portfolio we are now implementing, is the NOK145 billion, which amounts to three and a half concert houses similar to those built in Stavanger, per month. These projects are sanctioned, as MMO projects, fast-track projects, including new developments-Gudrun and Valemon and the UK wind farm at Sheringham Shoal” he says. And these numbers does not include exploration and production drilling and well costs! According to Opedal, Statoil has a tremendous range in the projects. “For just a few years ago, it was much smaller discoveries we mainly worked to mature and develop, and which has materialized in the fast-track developments. Now we have a couple of elephant discoveries which means that we have this tremendous variation in our projects. In addition, we have projects for improved recovery and maintenance and modification projects. Then we have several large subsea compression projects. And the last dimension, our own operated international projects, such as oil sands in Canada, Brazil, Mexico, and a discovery in Tanzania”. Opedal maintains that times are busy, but they will look out for some of the mistakes made during the last peak of activity when they suffered high prices and often poor quality in some

deliveries. “One of the projects we are working on very hard now, is to ensure quality in everything we do. We challenge the supplier industry to think alike. We believe the supply industry has the necessary capacity overall, and we are working closely with them to ensure both quality and capacity. It must be right the first time, that will benefit us all”. Opedal agrees with Statoil’s head of the Norwegian Continental Shelf, Øystein Michelsen, who recently told OMG staff that many of the group's most profitable projects are within IOR: “Yes, he's right, for many of our projects are within the IOR, and we see that the Norwegian Continental Shelf is very competitive with respect to profitability. Also, many new projects are very competitive, so the Norwegian Continental Shelf is very attractive”, says Opedal.

OIL CO M PANIES

Spring Spring will double within a year This minnow specializes in oil exploration and leaves the development of discoveries to the big boys. But this can change very quickly. The premises are characterized by the fact that Spring Energy is doing well in a lucrative business, they are located a hundred meters from City Hall in Oslo, has art that shows the historical production of oil painted directly on the walls, and the premises extends over three spacious floors - although the company only has 33 employees. This is a company that started in 2008, but who has already paid over a billion NOK in dividends to its owners. “We have been involved in the drilling of ten wells, and there is oil in six of them”, says CEO Roar Tessem. Tessem led the Norwegian oil company when it was merged with Petra, and suddenly he was out of work. This was in 2008 when oil production on the Norwegian shelf had fallen by forty percent, and one spoke of a "sunset" industry. “I saw a lot of potential in the Norwegian Continental shelf, and decided that I would start my own company”, says Tessem. The largest investor in Spring is Hitech Vision, a company that invests in growth companies in the oil and gas. However, all employees have an ownership interest. “It adds energy to our decisions, that what we do has a direct impact on your wallet”, says Tessem. Spring Energy is an oil minnow that according Tessem is "good looking." Almost all the staff have technical expertise that is required for the company to be pre-qualified for licensing rounds on the Norwegian shelf. “Since we started, we have applied for all rounds of the distribution of licenses”, say Tessem. Spring now has 32 licenses, and half have been received in the transaction market’s concept of "farm in": “We do not pay to go into the licenses, but for costs related to exploration - such as seismic and drilling of wells”, says Tessem. Spring Energy is operator of three of their licenses, but have not yet drilled operated wells yet. “We have a team of many disciplines, and make our own assessment of where it is wise to drill, which we use to challenge the operator. The role is similar to the one as a member of a board. We have a vested interest that we find oil, and as a licensee, we have a duty to check that the operator is doing a good job”. So far have not Spring Energy been in charge for any field developments, but they have a 2.5 percent stake in the producing Brage field, which they received in exchange for five percent of the Grosbeak discovery: “Grosbeak was too expensive to develop for us, we can not bet all your money on one horse. In the future, we will have more interests in several fields, and will soon drill our own wells. We will also be involved in development, either by funding development or asset swap. We expect to be twice as large within a year”, he says. When Spring Energy started in 2008, the business plan the company to the stock exchange within three to five years, it's four years ago now. But Tessem denies that Spring Energy gets a ticker in the near future: “We are ready to go public, but have not yet seen any reason for it. I prefer to raise money outside the stock exchange, and HitecVision have said that they are long term investors. But of course it can happen.

143

144

OIL CO M PANIES

Gdf Suez Seven discoveries may be one major development Will trigger giant investment in the northern North Sea. WintershallÂ´s Skarfjell discovery has speeded up the multiple development plans in the area north of Troll. According to a letter the Norwegian Petroleum Directorate, NPD, has sent to the operators Statoil, GDF Suez, Wintershall, RWE Dea and Eni, the discussions on joint development of several discoveries have already been started. In total there are in the area found up to 400 million barrels of oil and 38 billion standard cubic meters of gas as it still is not planned for development.

Discoveries in the area include: Astero (Statoil)

39 mill. barrels

15-30 bill. Sm3 gas

Peon (Statoil)

Titan (RWE Dea)

5.6-12.5 mill. barrels

3-8 billion Sm3 gas

Agat (VNG)

Grosbeak (Wintershall)

45-55 50-195wells mill. prbarrels year

45-55 wells estimates are not provided pr year

Aphrodite (Eni)

Skarfjell (Wintershall)

45-55 60-160wells mill. prbarrels year

Planned wells rapid 45-55 development pr year

Fram H-Nord (Statoil)

Resource

OIL CO M PANIES

of this, but based on information NPD has received, the plans does not include cooperation with all relevant licensees. (....) On the basis of this, the NPD encourages all licensees to expand their partnership to include all relevant licenses and formalize the cooperation further, for example, through an area forum”, according to the directorate.

Gjøa, GDF Suez

All to Gjøa?  Gjøa already receives oil from the Vega and Vega South, but the platform still has available capacity: “We are thinking area solutions, which is in line with good Norwegian oil policy. We welcome the leading role in coordinating the work and in the aftermath of the NPD initiating a meeting with the appropriate licensees. We have always communicated that we regard Gjøa as a hub in area solutions, and we have spare oil processing capacity from 2013-2014. Gas capacity is a bit further ahead, says communications director Ulf Rosenberg in GDF Suez. According to Rosenberg, GDF Suez has enough capacity to be a production center for the entire area, but obviously cannot take it all at once. The question then becomes how quickly to build out the individual findings - if one can wait for the availability of Gjøa or whether it is better management of resources to build new infrastructure in the same area. “It is also important to remember that there is currently uncertainty about the size of several of the discoveries and additional exploration potential in the area”, says Rosenberg. However, it is natural that Wintershall considers the possibility of a second site solution based on their discoveries, Grosbeak and Skarfjell, which has a total potential of between 110 and 355 million barrels. The Company believes that the latter has the potential to become a "hub" in the area, which could mean an independent development and related investments of tens of billion NOK. “Wintershall is planning at least two wells on Skarfjell to obtain more detailed information about the reservoir. These wells will be drilled early next year. After that, we consider development options. Norwegian authorities like synergies, so we will consider the opportunities for a solution together with other licensees if Skarfjell is a development candidate” says information officer, says Verena Sattel in Wintershall. But while the NPD applaud coordination plans, it stresses the importance of all licenses in the area to be involved. "The Norwegian Petroleum Directorate has been informed that it has taken an initiative to look at joint development solutions for parts of the area. NPD takes a positive view

Neither Eni, the operator of Aphrodite discovery, or group would like to say something concrete about opportunities to join in a common development. “We work with various options, if possible, to find a solution that is economically viable”, says communications manager Andreas Wulff in Eni Norway to OMG. “We currently have a strong focus on this area to clarify our continued commitment”, says information officer in Statoil, Ola Anders Skauby.

Overview over operators in Norway Bayerngas Norge

Lotos Exploration and Production Norge Lundin Norway

BG Norge

Maersk Oil Norway

BP Norge

Marathon Oil Norge

Bridge Energy Norge

North Energy

Centrica Resources (Norge)

Norwegian Energy Company

Chevron Norge

OMV (Norge)

ConocoPhillips Skandinavia

PGNiG Norway

DONG E & P Norge

Premier Oil Norge

Dana Petroleum Norway

RWE Dea Norge

Det norske oljeselskap

Repsol Exploration Norge

E.ON Ruhrgas Norge Edison International Norway Branch Eni Norge ExxonMobil Exploration and Production Norway Faroe Petroleum Norge

Rocksource ASA

Front Exploration

Total E&P Norge

GDF SUEZ E&P Norge

Valiant Petroleum Norge

Hess Norge

VNG Norge

Idemitsu Petroleum Norge

Wintershall Norge

A/S Norske Shell

Spring Energy Norway Statoil Petroleum Suncor Energy Norge Talisman Energy Norge

145

146

OIL CO M PANIES

BP´s Skarv field in the Norwegian Sea

BP BP is planning two new platforms And 25 billion NOK in investments in Norway. BP Norway has much of its activity centered around the Skarv field development in the Norwegian Sea, and the mature fields Ula and Valhall in the North Sea. The company expects to invest NOK 25 billion , which will go towards two new platforms, and extensive drilling operations. For a period, BP will have four simultaneous drilling operations during 2013. BP expects to have its Skarv field on stream in 2012. It also expects to start production from the new process and hotel platform at the Valhall field, which will be operated by power from land. An umbrella project that BP calls "the Valhall Greater Programme" has started, and it involves investment of the estimated NOK 25 billion. The bulk of this money will go to two new platforms and drilling of between 20 and 30 production and injection wells. According to BP, renewal of the ageing Hod field has come furthest in the planning phase, and the final investment decision can be done in 2013. The second platform will, if sanctioned, be located west of the Valhall field. The Dong-operated Oselvar field has recently been linked to the Ula field and the injection of gas from the satellite field contributes to increased production and eventually more production from Ula. The connection of Oselvar to the Ula consolidates its position as a field centre for the surrounding smaller discoveries, for BP's own field Tambar, and the Blane field operated by Talisman. BP is also in the process of estimating the Ula fields Triassic reservoir in order to clarify the

possible additional reserves for production that can contribute to better economícs and extend field life. It is however too early to conclude, according to BP. BP currently has one planned exploration well, and it is in the Outer Snadd area near Skarv. The hope is to prove additional reserves to Skarv, and drilling will commence during the second quarter of 2012. “But we are also interested in new exploration areas on the Norwegian shelf, and we have acquired seismic data over the Nordland and Troms areas, says public affairs manager for BP, Jan Erik Geirmo to OMG. BP has for years refrained from participating in licensing rounds in anticipation of the opening of these areas.

OIL CO M PANIES

J ohn crane John Crane is a global leader in the design, development and manufacture of products and services for the worldâ&#x20AC;&#x2122;s process and industrial markets. With a history that stretches back over 95 years, the company is now a world-leading supplier of mechanical seals, seal support systems, power transmission couplings, hydrodynamic bearings, filtration systems and packing, supported by a comprehensive global support network.

Ph o n e : + 4 7 5 1 9 4 4 2 6 0 FAX : + 4 7 5 1 9 4 4 2 61

A D d r e s s : S k v a d r o n v e i e n 2 7, N-4050 Sola, Norway

salg@johncrane.no w w w. j o h n c r a n e . c o m

John Crane

Power Transmission Couplings

Our recently expanded product portfolio ensures customers now benefit from a genuinely integrated offering that includes:

Constant development ensures Metastream couplings satisfy ever-changing demands and allow compliance with industry specifications. An all-metal construction eliminates the need for lubrication and the incorporation of spacer retention anti-fly features enhance performance and reliability.

Mechanical Seals An extensive range combining advanced, thoroughly technologies with extensive industry expertise. Reliable and effective solutions for virtually any application characterized by innovative design concepts and outstanding manufacturing quality.

Gas Seals Over 40 years of gas seal experience reflects a detailed understanding of the many applications on which they are used. Suitable for use with virtually any type of gas they can handle pressures of up to 425barg / 2900psig, temperatures up to 400oC / 752oF and speeds up to 180m/s / 590ft/s.

Seal Support Systems A comprehensive range of engineered pressure reservoirs, gas seal control panels, heat exchangers and abrasive separators can be combined to produce the perfect seal support system for any application, creating the optimum environment to ensure outstanding seal performance and reliability.

Bearing Technology Providing reliable and robust shaft line technologies for the power generation, oil and gas, processing, and marine industries. Over 100 years experience in the design, manufacture and servicing of hydrodynamic bearings ensures we are able to meet the requirements of the most demanding applications.

Filtration Systems A comprehensive range of filtration products designed for oils, liquid hydrocarbons and water, through to specialist coalescing filters to remove liquids from seal gas and fuel gas steams. Whatever the duty, John Crane Indufil filters will ensure optimum reliability from your machine.

Asset Management Solutions Specialist products and services enabling cost effective performance improvement. Using a unique combination of equipment and

specialist skills we work in partnership with you to develop innovative solutions for condition based maintenance and improvement of your systems.

Service John Crane has a global network of over 230 service facilities in over 50 countries providing the highest possible levels of service and support. In addition to the comprehensive mechanical seal repair and refurbishment capabilities, the Stavanger service centre also carries out dry gas seal testing under typical operating conditions (for example 150 bar at 15,000 rpm) without the need to send the unit out of Norway. Combining this with on-site repair facility, turn around times are cut by 70%, saving both time and money.

147

Visit the INPEX stand at ONS Stavanger. Learn about our US$34 billion Ichthys LNG project. See you there 28 - 31 August, 2012.

inpexcareers.com.au

Photo: Jan Inge Haga

The future is boundless. And all yours. Fortunately, we already know a lot about the future. For example, we know that, with our shares in Snøhvit, Njord, Fram and Gudrun, and as the operator on Gjøa, we have secured a good and prosperous life for ourselves on the Norwegian continental shelf. At the same time, we look forward to experiencing everything we don’t know about the future. Potential discoveries. New licences and new operatorships. In short, all the opportunities. Whatever the future may bring, with our portfolio, the best minds in the business, and support from one of the world’s largest energy companies, we’re more than ready to embrace it.

Meet us at ONS! Hall B. Stand no. 213.

10/ HSE

No fatal accidents in 2011

152

HSE

The Norwegian trends in risk level The Norwegian trends in risk level The Norwegian Safety Authority maintains that HSE-efforts to reduce risks on the country's continental shelf (NCS) are paying off and figures from a 2011 study of trends in risk level in the Norwegian petroleum activity (RNNP) show favourable progress in key areas. “These results indicate that developments in the level of risk are moving in the right direction. A good year was recorded in 2011, with no major accidents or deaths in Norway’s petroleum industry. Now the 2011 RNNP study also reveals a clear improvement in the risk level in a number of key areas”, said Magne Ognedal, director-general of the Petroleum Safety Authority Norway (PSA), when the annual RNNP report was presented in Stavanger recently. Ognedal believes the good results were the product of deliberate efforts by the industry. “It’s particularly gratifying to see that the trend appears to have shifted in a positive direction on important issues such as hydrocarbon leaks and well control incidents. These are areas that we have asked the industry to get to grips with, and we’re now seeing an improvement. Working purposefully yields result”. The overall indicator for major accident risk on the NCS as a whole has flattened out since 2007 at a level lower than in the preceding period between 1999 and 2004. Viewed in greater detail, however, it is evident that the indicator for mobile units has shown a decline in recent years. “The primary goal is continuous improvement. A purposeful commitment is required if the overall indicator is to get even better” Ognedal said. The RNNP report shows that a higher incidence of damage to risers and pipelines as well as to structures helped to keep the overall indicator unchanged in 2011. Serious personal injuries have shown a favourable trend in recent years, however, reaching 0.6 per million hours worked for the whole NCS in 2011 – significantly below the average for the preceding 10 years. The personal injury frequency on production installations was at its lowest-ever level in 2011. Even with more hours worked overall, serious injuries fell from 23 in 2010 to 17 in 2011. On mobile units, the personal injury frequency rate increased slightly from 2010 but was nevertheless below the average for the preceding decade. Nine such injuries were recorded in 2011, compared with five the year before.

153

154

HSE

Helicopter rescue at sea

Risk level on land Eight unignited hydrocarbon leaks were reported in 2011 for the land-based plants, along with two small fires, one toxic emission; there were 27 incidences of dropped objects and five accidents with vehicles. The figure for unignited leaks was on a par with the two previous years, and down by more than 50 per cent from the 21 incidents in 2008. No hydrocarbon leaks ignited during 2011. Three serious personal injuries were reported from the land-based plants in 2011, compared with nine the year before. The overall serious personal injury frequency for land-based plants was 0.3 per million hours worked, compared with 0.7 in 2010. Considerable variations exist between these facilities. The RNNP process was initiated in 1999-2000 to develop and apply a tool for measuring trends in risk level in the Norwegian petroleum activity. This work has acquired an important position in Norway’s oil and gas industry because it contributes to a shared understanding of risk developments by everyone involved. Priority areas in 2012 and beyond. The PSA’s supervision and follow-up activity has revealed that the risk of occupational injury and illness fall unequally on different categories of workers in the petroleum industry. Groups of contractor employees have more risk factors in their working environment, and their exposure to these factors is higher than for operator personnel. Deficiencies also exist in the way contractor groups exposed to risk are identified and followed up. Groups exposed to risk have been a main priority for the PSA over a number of years, and this commitment has led to improvements. But the PSA has criticised companies for doing too little to reduce risk for particularly exposed groups.

Barriers Priority areas for the PSA in 2012 and beyhond include: Safety barriers which must be maintained in an integrated and consistent manner in order to minimise the risk of a major accident. Barrier failure or weakening is often a causal factor in accident and incidents, the PSA believes Constant challenges related

to well control and integrity, hydrocarbon leaks and ageing installations underline that the industry needs to pay special attention to these issues. Technical and operational priorities have been a main priority for the PSA over a number of years. Nevertheless, players in the petroleum industry vary in how far they have implemented the requirements in the regulations concerning barriers. The PSA also sees that work on improving the robustness of barriers in the various phases of a facility’s life cycle has developed in different directions and has reached differing levels of maturity.

Natural environment “The industry must work purposefully to prevent accidents which can cause acute discharges”, the PSA maintains, as the Deepwater Horizon and Montara accidents, in the Gulf of Mexico and off Australia respectively, also highlight the environmental consequences of a major accident. Systematic learning from incidents that have or could have led to acute marine pollution are an important part of work on prevention for the PSA.

Inger Anda. She is satisfied that there were no fatal accidents last year, despite the high activity level: “It is gratifying that we have had a year with no deaths and major accidents in the business, despite the very high activity. The PSA in 2011, however, has had one of the busiest years ever, largely because of what happened on the Deepwater Horizon in the Gulf of Mexico in 2010 and a major accident at Montarafeltet outside Australia in 2009. The PSA established a project to assess these disasters in the light of the Norwegian regulation and Norwegian petroleum activities. The first part of the project was delivered in the summer of 2011, but work is still underway. On the initiative of the EU, progress is underway on extensive discussions around the issue of international standards for safety in the petroleum industry”.

Priority areas in 2012 and beyond The PSA’s supervision and follow-up activity has revealed that the risk of occupational injury and illness fall unequally on different categories of workers in the petroleum industry. Groups of contractor employees have more risk factors in their working environment, and their exposure to these factors is higher than for operator personnel. Deficiencies also exist in the way contractor groups exposed to risk are identified and followed up. Groups exposed to risk have been a main priority for the PSA over a number of years, and this commitment has led to improvements. But the PSA has criticised companies for doing too little to reduce risk for particularly exposed groups. Priority areas for the PSA in 2012 and beyond include: Safety barriers, which must be maintained in an integrated and consistent manner in order to minimise the risk of a major accident. Barrier failure or weakening is often a causal factor in accident and incidents, the PSA believes Constant challenges related to well control and integrity, hydrocarbon leaks and ageing installations underline that the industry needs to pay special attention to these issues. Technical and operational priorities have been a main priority for the PSA over a number of years. Nevertheless, players in the petroleum industry vary in how far they have implemented the requirements in the regulations concerning barriers. The PSA also sees that work on improving the robustness of barriers in the various phases of a facility’s life cycle has developed in different directions and has reached differing levels of maturity. “The industry must work purposefully to prevent accidents which can cause acute discharges”, the PSA maintains, as the Deepwater Horizon and Montara accidents, in the Gulf of Mexico and off Australia respectively, also highlight the environmental consequences of a major accident. Systematic learning from incidents that have or could have led to acute marine pollution is an important part of work on prevention for the PSA.

According to Anda, the PSAs main priorities for 2012 are relatively unchanged compared to previous years: “The four selected priorities are areas where we consider that there is still a great need for focus: barriers, risk groups, major accidents and the management and the external environment. These are also areas that coincide with important issues after the accident on the Deepwater Horizon. Now the first part of 2012, among other things, we used to summarise the year and summarise the data material to be included in our annual report on the level of risk in Norwegian petroleum operations (RNNP). How risk trends for 2012 and beyond will look like, is still too early to tell”.

Poor safety culture can be costly Statoil’s Magne Eivind Hausberg say that it does not normally cancel existing contracts because of poor safety management, but that it can lead to exclusion: “We tend not to terminate existing contracts because of poor safety control, but attempt in such cases to take this up with the supplier in question, and bring about improvement. If this does not happen, they will get notified that they are not required to supply to us any more before unacceptable conditions have improved, says Hausberg. Statoil is responsible for around 80% of all activity on the Norwegian continental shelf, and in many cases a Statoil contract can mean life or death for most suppliers: “We have 12,000 suppliers globally, and we expect that each has put an effort into meeting the demands we place, and we have made a booklet where this is explained”, Hausberg says. It is not trivial in question, to say the least, because last year the company spent NOK 120 billion with its supply chain

No fatal accidents in 2011 Although there has been no major accidents on the Norwegian Continental Shelf last year, there have been several serious incidents that the Petroleum Safety Authority, PSA, has investigated, and where there was potential for major accidents. “The PSA investigated an incident that occurred on the Visund field, a serious incident on the Gullfaks A, and a fire at Valhall this summer. It has also been involved in a number of other serious incidents in the industry which the individual operator companies have investigated themselves, and that the PSA, of course, have followed closely. In the PSA, we have in 2011 also spent some time trying to follow up on Statoil's efforts to comply with the order for the serious gas leak on Gullfaks C in May 2010. These are issues that have not yet been processed by us. So even though we have put behind us a year without any major accidents, we see that there are plenty of challenges for the industry to address”, says head of information in the PSA,

Oil spill preparedness

156

HSE

Rescue man during practice

HSE

Safety is more than security offshore. Every day throughout the year, Bring transports tons of equipment to the oil industry along the Norwegian roads. There are many players and not everyone takes the technical condition of vehicles and driving and rest periods seriously. The competition is fierce, and if anyone can push security, they can offer cheaper rates. The individual players that send goods have a collective moral responsibility to ensure that the transfer takes place as safe as possible. Public Roads reveal more glaring examples of that security is compromised: Vegvesenet, the Norwegian watchdog on public roads have checkpoints along the regular routes, and that it is quite common to issue driving bans to drivers and their heavy vehicles. This may be because they are too heavily loaded, have long or wide loads or the load is not secured properly. They also check that the drivers comply with their driving and resting times. Bring, which is the largest player, has 6,000 departures per year from Norwegian oil bases. Bring Cargo has developed its own driver's manual that describes the safety requirements and careful safety areas that all have a responsibility to follow up. This manual describes in detail the rules the strict driving and resting times for drivers. Moreover, Bring has installed speed -reducing measures in their vehicles, preventing them from speeds over 80-84 kmh. “The most typical shipments are baskets of well and drilling equipment that is transported by our service "Oil Express". It currently consists of 60 purpose built semi-trailers that covers Farsund in the south to Hammerfest in the north. This means daily deliveries on all oil bases on the coast. We have 6000 annual departures of the oil express”, says Frank Soltvedt, Sales Manager in Bring. Bring commenced its operations in the early 1970s with the mapping of the oil company's transportation needs. The business has since grown, and the company is today the largest player.

Face-off for rescue role Four helicopter manufactures are facing off against one another in a bid to become the supplier for a lucrative NOK 16.8 billion rescue contract offshore Norway. Europe's Eurocopter, Sikorsky in the US, Anglo-Italian AgustaWestland and multi-national NH Industries are the main competitors for the Norwegian government's new contract for offshore rescue helicopters which are due into service in 2016. Currently the government is considering the tenders and the contract is due to be awarded in the autumn of 2013. For nearly 40 years the British-built Sea King, manufactured under licence from Sikorsky, has been in use offshore Norway and the new Sikorsky S92 is being put forward for the new SAR contract. Older machines, such as the original Sea King and Sikorsky S 61, which were long in use as passenger

shuttles to and from Norwegian installations, were large and spacious machines, but these have since been replaced with European Super Puma helicopters, which are faster but narrower inside the cabin. “EC225, together with Eurocopter Super Puma (AS332L1), is already in extensive use of helicopter rescue services in Norway and Iceland, as well as flight by Employees in the oil and gas industry. All Civilian helicopter in Norway is provided by Eurocopter. For complex rescue operations, for example, when you save people from a cliff, it is an advantage to have a helicopter you get as close as possible to the rock wall, and that is easy to manoeuvre. At the same time, the machine has the capacity two take up a lot from an accident: in Asia, We have actually an example elsewhere 32 people were rescued in a EC225 computer”, says Frode Østnes, who is representing Eurocopter in Norway, “The Sikorsky S92 is roomier and just as fast as its competitors”, says Ivar Eie, head of Aircontactgruppen, which is Sikorsky's representative in Norway, adding that the world's first helicopter rescue was performed by a Sikorsky helicopter in 1944 and that the Sikorsky Aircraft Corporation is one of the world's largest helicopter manufacturers. Anglo-Italian AgustaWestland was formed from the UK's Westland Company, based in Yeovil, near Bristol in the UK southwest, and Italian industrial giant Agusta. GKN, a major Westland shareholder since 1987, later bought out Sikorsky's parent company, United Technologies, which was the other significant Westland shareholder. Then in 1994 UT decided to sell its Westland holding. GKN bought UTC's Westland shares and launched a successful take-over bid for Westland, creating GKN Westland Helicopters in 1995. In 1998 GKN and Finmeccanica started negotiations for a joint venture company combining their respective helicopter companies, and eventually formed AugustaWestland in July 2000. The engineering company GKN had been a major shareholder in the Westland Group since 1987 and was one of the Groups strongest supporters. Sikorsky's parent company, United Technologies, was the other significant shareholder and in 1994 it decided to sell its holding. GKN bought the UTC shares and launched a successful take-over bid for Westland. Merlins Re-named GKN Westland Helicopters in 1995, the substantial financial muscle of GKN enabled the company to bid successfully as prime contractor for the £600 million Support Helicopter contract for the Italy's Finmeccanica and UK industrial group GKN formed a 50/50 joint venture to create AugustaWestland in 2001 and subsequently in December 2004, Finmeccanica bought out GKN's 50% stake in the joint venture. Delivery of the new Norwegian search and rescue helicopters is to start in 2016 and all of the units are due to become operational by 2016.

157

158

HSE

R app B omek as

-f i re p ro o f a n d E x p l o s i o n P ro o f D o o r s Rapp Bomek A/S is Norway’s largest manufacturer of advanced technology fireproof and explosion proof doors for the offshore petroleum industry. With origins dated back to 1864, Rapp Bomek is one of Norway’s oldest companies within marine mechanical engineering. As a member of the Rapp Marine Group, Rapp Bomek continuously develops new generations of advanced industrial products for demanding marine operations.

Ph o n e : + 47 7 5 5 9 16 0 0

Offshore Fire Doors Rapp Bomek fire doors are tested according to all applicable specifications and are type-approved by Det Norske Veritas, American Bureau of Shipping, Lloyd’s Register of Shipping, Russian Maritime Register of Shipping, Bureau Veritas and the US Coast Guard for use on fixed and floating platforms. The doors are manufactured under a strict QA system in accordance with ISO 9001, and fire doors delivered to platforms in the North Sea continue to perform well after more than 31 years in a harsh, saline and arctic environment.

FAX : + 47 7 5 5 9 16 1 0

ADdress: Burøya, Bodø, Norway

office@rappbomek.com

M a i l Ad D r e s s : B u r ø y a 8 0 12

w w w. r a p p m a r i n e . c o m

Bodø, Nor way

•

Non-rated

•

Middle East

•

Louvered

•

Russia

•

Pneumatically operated

•

Southeast Asia

•

Hydraulically operated

•

West Africa

•

Electrically operated

•

USA

Since 1975, Rapp Bomek has delivered nearly 25,000 doors to oil and gas platforms, ships and projects to the following markets:

Door leafs and frames of mild steel, stainless steel or aluminium are available, and Rapp Bomek doors include several ratings and types:

•

Norway

•

Hinged and sliding

•

Australia

•

Single and double-sized

•

Brazil

•

Light-duty A-0/A-60 rated

•

Canada

•

Super light-duty A0/A60 rated

•

China

•

Medium-duty A-0/A-60 rated

•

Caspian Sea

•

Heavy-duty A-0/H-120/J-30 rated

•

Europe

•

Combi. doors, fire rated +weather/watetight

•

Korea

11/

Job Market

Most wanted: Engineers

162

job market

Polar Pioner made the Skrugard discovery which has signaled the start of a new era for the industry in Northern Norway

Most wanted: Engineers Norwegian companies estimate they lack some 8000 engineers. This engineering shortage is greatest in civil engineering and in the petroleum, mining and metallurgy industries, where the estimated shortage is 1850 people. But many companies have adopted creative recruitment strategies to make up for lost numbers. The new "Norwegian" engineers do not necessarily work in Stavanger or Bergen. They might as well be located in Mumbai or London. The lack of Norwegian engineers and the need to improve competitiveness by reducing costs, are the main reasons why all major suppliers have started building international hubs. Aker Solutions has been a pioneer in this respect. No Norwegian company has recruited more abroad, and the company will, by 2015, increase the engineering staff in London with 1,300 employees. "The UK is our largest hub outside Norway. Within a few years we expect to have over 4,000 there. In both India, Brazil, Malaysia and the United States, we have well over 1000 employees. As of 30 April we employed 12,500 in Norway and 12,000 abroad", says Endre Johansen, head of communications at Aker Solutions.

100,000 job applications The company has not had a problem recruiting engineers. And, having employed 900 new staff from January to April, the company's knowledge of the labour market should be the best. The company is growing and experienced candidates are queuing up, more or less."We can sense that the market is tight, but we have so far managed to find the expertise we need. Last year we received some 100,000 applications and hired 2,700, 1,100 of which are in Norway. But it's not about how many people you can get in the door, but about acquiring the skills the company needs. We have had a steady growth in the number of employees in recent years, both in Norway and abroad. That is the result of high activity in all oil and gas regions worldwide", says Johansen. He believes that large, challenging technology projects are one of the explanations for the companyÂ´s recruitment success. "The feedback we get is that the candidates want to work with the most demanding engineering projects, such as Ă&#x2026;sgard subsea compression. Aker Solutions was born and raised in the North Sea, which has made us good at demanding technology. It gives us the extra advantage in the search for the best minds", says Johansen.

job market

200 applicants for 12 positions The company is looking for candidates with technical training and experience in construction, shipbuilding, aerospace, defense or mechanical engineering. Those who are selected will go through the company's own engineering conversion programme, where they are introduced to the oil and gas industry in general and Subsea 7's vessels and equipment in particular. The conversion course is eight weeks. "Many consider this to be a great opportunity, and last year we received 200 applicants for 12 positions. This means that we ended up with very qualified candidates", Eidsnes says. "What does it take to be among the 12?" "First and foremost, they must have a formal engineering education. Then we look at what type of job they have had. Candidates with experience in the mechanical industry are obviously very attractive. The same goes for people who have had leadership positions."

From frustration to boom Just two or three years ago, the Norwegian supplier industry was characterised by frustration over the fact that several key contracts went to foreign suppliers, including the Goliat FPSO which went to Hyundai in South Korea. Since then the situation has been reversed, and Norwegian suppliers have proven to be very competitive. Aibel is among the companies that have secured a number of large contracts in recent years. "The market is unusually hot, and if Norwegian companies were to match the need, we would probably have needed considerably more engineers. Therefore it is good that we can turn to our international offices and run global recruitment at the same time, as we do in Portugal, Poland and Spain. At the end of May, Aibel had employed 455 new recruits this year, and the plan is 900 throughout 2012", says communications manager Bjorg Sandal in Aibel. Industry analyst Jarand Rystad has always claimed that the engineering shortage will not be a show stopper for the oil industry."The engineers come early in the value chain, and our calculations show that the engineering strain at the top in 2012. Afterwards, it will remain at a steady, high level. This means that the maximum pain level in engineering is now and about one year ahead. It is thus not going to get that much worse", says Rystad.

Subsea 7Â´s shortcut Subsea 7 has solved its recruitment challenges by offering a shortcut into the oil industry for engineers with different expertise."We have had several such recruitment rounds. Our experience is good. We get a greater range of candidates, both in regards to skills and age. Meanwhile, we are helping to attract more engineers into an industry with a significant need", Subsea 7s technical director, John Eidsnes tells OMG.

"Bad for municipalities" High salaries and professional challenges makes the petroleum industry less affected by the engineering shortage than others. "Offshore industry is competitive in salary, and there are many exciting projects in the loop. Thus, they manage to recruit engineers and civil engineers. At the same time, we see that recruitment to the public sector goes down, and nearly 50 percent of the municipalities report that they have vacant engineering positions", says communications manager Arve Christensen at NITO, the Norwegian engineering and technology organisation.

"Good for the society" This has been seen as a major concern in parts of Norway, but may actually turn out to be socially profitable. "If you move people from companies who do not earn so much money to where they earn more money, Norway as a whole will reap the benefits", says analyst Sveinung Fjose in Menon Business Economics.

163

164

job market

For me this is not an issue, since I do not have children yet. I loved working offshore, but felt that there was too little continuity in life, and that I kind of had two lives, one offshore and one onshore. Rotational work can be fantastic, but it does not fit equally well for everyone." "How has your path been in a male dominated world?" "I have always felt welcome and it has not been a disadvantage to be a woman. On the contrary. But you have to do a good job, just like the guys." "Have you found that you are not being taken seriously as a woman?" "Only once. It was a middle-aged American. He thought that I wasnÂ´t able to perform my job properly. For him, I was just young and blonde", says Pettersen.

This is a man's world.... Only twenty per cent of the employees in the oil industry are women. This number has not changed in 25 years. Ulla-Britt Lilleaas, professor at the Center for Gender Equality at the University of Agder, carry out research on male culture and those who oppose gender equality in the military. She believes that one can draw parallels to the oil industry. "Officially, we are trying to get more women into the industry, but we can not do it. One reason is that women are not included. It need not be ill will, many men simply do not know how to handle women. They have their own way of being, and women are perceived as disruptive", she tells OMG. Gro BrĂŚkken, CEO of OLF, knows the problem. She started her career at Shell in 1976, first as a trader, then as chief of operations planning. She then became accustomed to working with men, and her female colleagues were primarily employed in administration jobs. It could offer amusing situations. "I have found that the men went into the toilet to continue the discussion when we were negotiating contracts. For obvious reasons I could not follow them, and missed some of informal situations", she said. "What about dinners and bar visits; did you feel that you were welcome?" "It's something I have chosen to stay away from as I have three children. I have travelled and worked a lot, and had to draw the line there. Thus, I cannot complain about being left out, she says and adds: " I think that there is a freedom in being a woman, no one can define my role."

Young and blonde It turns out that 49 percent of women in the oil industry have higher education. The corresponding figure for men is 35 percent. Does that mean that women have to perform more to get the same opportunities? "In the military it is said that women have to perform twice as good as men and then some", Lilleaas says. "Besides there is an idea of what women can and cannot do: Working on the platform is a man's job". Offshore, the numbers are even worse than onshore, with only ten percent women. Elisabeth Hanne Pettersen, Deputy Chief Operating Officer of Schlumberger Norway, was one of them for three years. She believes that people have the wrong idea about work at sea. "You consider offshore work to be heavy and tough, but not all jobs are equally physical. I tested drilling fluids and planned logistics - which does not require large muscles", she says. "The rotation on the platform is two weeks on, four weeks off. Is it possible to combine with young children?" "It will vary from person to person. I know many who work offshore and have young children, including women. They say they have more time with the children than if they had worked onshore.

Gender paradox In Norway, there is a perception that we have come a long way towards gender equality, but girls and boys are still choosing traditional roles. "Girls have on average slightly lower self expectations than boys in mathematics and other "hard sciences", but they perform equally well. Women have slightly less confidence in these subjects, without reason", says Fredrik Jensen, a researcher at the Norwegian Centre for Science Education. He also believes that the fixed notions of who is studying what acts like a brake on development. "A Dutch study shows how young people perceive the typical physics and languages student. A physicist was seen as socially weak, less attractive, and not very creative - but very intelligent and motivated. By comparison, the language student was seen as beautiful, social and creative, but not very smart. Young people tend to choose subjects based on who they identify with", says Jensen. To break prejudices you may want to introduce youth to reality. "Recruitment strategy has demonstrated that the picture changes when they meet other science students. You come back and think that they are ordinary people "like myself", says Jensen, and states that role models are essential to reverse the trend. "Just look at Siri Kalvig. Before she came on TV, it was almost exclusively men who were meteorologists, but afterwards this has been turned upside down. Now there are more women than men taking the course. You have to tread new paths and show the way, make it clear that it is appropriate for girls to engage with technology."

job market

A country for old men

10%

Few women y

Higher education in the oil industry

ie n

28%

e ri

43%

20%

ine

Women studying sience at Univerity and College

49%

30%

51%

Women

Men 35%

Phy sic s

Role Model Siri Kindem is technology director of Statoil. Is it necessary to have a flexible man to be able to make a career like her? "Everyone has their own solutions to secure that one can work a lot", says Kindem. She has worked in Statoil throughout her whole professional life, since she wrote a thesis in physical chemistry for the company. "I grew up in Stavanger and had family in the oil industry. For me the oil industry was not distant and alienated." "Do employers have to do anything special to recruit women?" "You have to give women the same challenges and opportunities as men, as well as flexibility in certain phases of life. I have never known the feeling of being excluded. I think that one will be included if one understands the business, it makes less difference whether one is male or female." "Do you have any role models?" "Margaret Ă&#x2DC;vrum, head of technology, drilling and projects in Statoil's on the executive committee, is a role model and catalyst, both nationally and internationally", says Kindem. "What about yourself?" "I do a lot of lectures nationally and

Offshore

38%

20%

ineering Enig

Tone Rognstad, HR director of Statoil, said that the gender splitting begins at the university. "Only 22 percent of those seeking a job in Statoil are women. However, we can do something in the recruitment phase, one out of three who work here are female. Girls are good at school and often very good applicants. If you do not try to recruit them, you miss out on a large proportion of talent", she says. Statoil is working actively to secure diversity in the staff. Rognstad says: "There are many reasons why we want diversity, not just in terms of gender, but also cultural, age and background. When you see things from multiple sides, you can find better solutions." "Are women included at all levels of the company?" "When a woman is employed, it is important that she has the same opportunities as men. Therefore, 32 percent of our managers are women. But in corporate management, it is only twenty percent." "Why?" "There are only ten people in corporate management. One woman will have major effects on the percentage, she says and adds: - The trend is positive and promising for the future, since 34 percent of the leaders under age 45 are women. This is very good for recruitment." "Do you have to adapt the working conditions especially for women?" "No. But ambitious women marry ambitious men. Statoil is a Norwegian company with Norwegian leadership, and we facilitate that one can have two careers in one family."

Private sector

Promising for the future

Oil prices are so high that it saves half the companies on the Oslo Stock Exchange from the financial crisis. Production on the Norwegian Continental Shelf ensures the Norwegian people a standard others can only dream of. Is a skewed balance of judgment really a problem? "Yes", says Professor Ulla-Britt Lilleaas. "There is a problem that you do not get the best minds from across the spectrum of the population. Heterogeneous groups are more resilient and inventive. Biased recruitment makes companies lose talent."

Petroleum industry

"Bayerngas do not use quotas, which shows that there are many talented girls on the market. I am surprised that the proportion of women is so low elsewhere, and I believe that oil companies need to promote themselves more to women. For there is no logical reason why women should not work in the industry. There are good opportunities for combining business with pleasure in this profession", she says and declares: "I do of course noticed that there are many men around me, but I am more puzzled by age than gender. Most people I meet are twenty years older than me."

internationally, and I am aware that I may be a role model. For me it is important to be myself and emerge as a leader with integrity. Moreover, you must know what you are doing, and have an interest in what you do. For me, that is no problem. I like my job and am looking forward to going to work every day."

Ch em ist r

Trude Misje, Field Development Manager in Bayerngas, oversees the company's licensing partners in Norwegian and Danish waters. She is a civil engineer from NTNU, specialising in industrial economics and machine.It was one of the courses with lowest female participation. 2I had no particular role models, but switched to industrial economics in the course of the studies. It worked out well both socially and academically", she says and continues: "Now I have both female and male role models, I think it's important to have both." "Do you see yourself as a role model?" "I havenÂ´t considered myself to be one, but try to conduct myself the way I want others to." Bayerngas is a company that stands out in the industry. Almost fifty per cent of the staff are women.

i Civ

Girls in high school basically has an interest in relevant subjects: In 2009, the proportion of girls in science education programmes was 46%

165

166

job market

AT L A S S E RV I C ES G R O U P N O R WAY A S Atlas Services Group has been one of the leading providers of professionals to the energy and marine industry worldwide since 1982. Our international network enables us to provide clients with our services and with professionals of various nationalities wherever needed, for short or long-term projects on a temporary, recruitment or consultancy basis.

Ph o n e : + 4 7 2 1 4 2 2 0 5 0

ADdress: Marieroveien 21a

w w w. a t l a s s e r v i c e s g r o u p . n o

4 0 1 7 S t a v a n g e r, N o r w a y

oolsen@atlassevicesgroup.com

Business areas Atlas Services Group’s office in Stavanger has solid experience in providing competent professionals to the following business areas:

• • • • •

Oil and gas (upstream and downstream) Engineering Renewable energy Seismic & hydrographic Offshore construction

Offices worldwide We offer tailor made services from our various offices located worldwide. Our main office is located in Hoofddorp, The Netherlands. By outsourcing your recruitment to Atlas Services Group, you can be sure of competent professionals anywhere in the world, allowing you to concentrate on your core business.

Competent professionals For many years, we have maintained a pool of specialists in the oil and gas industry. The professionals we select are well trained and qualified in their task. We make sure they are fully competent and hold all the required certificates and permits prior to working for our clients.

Full service for clients We offer a full service package to our clients:

•

Recruitment

• • • • • •

Payroll (Offshore) training Tax compliance Social security Work permits Knowledge of local and international labour markets

Quality and safety Various certifications such as ISO 9001:2008, FPAL, Repro, Achilles and Sellihca confirm that Atlas Services Group is the first choice for many clients when it comes to quality and reliability of services as well as experienced and fully competent professionals.

Engineering professionals Our office in Stavanger recruits for the largest Norwegian and worldwide oil and gas companies. We are constantly in need of engineering professionals in various disciplines in the oil and gas industry:

Please visit www.atlasservicesgroup.no for our current job vacancies and apply directly online.

Largest online energy & marine jobbank www.atlas4jobs.com is the largest online job bank for job vacancies in the energy and marine industry. By uploading your CV and making your own professional profile you keep up to date with the most recent vacancies that match your profile. Advantages of subscribing on www.atlas4jobs.com:

• • •

Why work for Atlas Services Group? • •

• • • • • •

Drilling & well service (Q)HSE & safety Cost control Contracts & procurement Construction & maintenance Subsea engineering

Search for all job vacancies in the energy and marine industry on one website. Apply directly online for more than 55,000 job vacancies. Receive e-mails with job vacancies matching your profile.

• • • •

A permanent position, a project based position or consultancy work. An extensive portfolio of clients and projects worldwide. Training, educational courses and career guidance. Financial certainty; salary always paid on time. Excellent primary and fringe benefits. Support with regard to health insurance, taxes, transport and housing.

job market

EC N

-Engineering Consultants Nor way AS Finding the right people. Ecn – Engineering Consultants Norway as – are specialists within technical staffing and recruiting services for the energy, oil and gas industry in Norway and abroad. We offer our customers highly qualified and motivated personnel to fill vacant positions. Our employees are given the opportunity to build their careers through working on projects with exciting and innovative technology companies.

Ph o n e : + 4 7 7 1 2 7 0 1 0 0 FAX : + 4 7 7 1 2 7 0 1 0 1

ADdress: Industriveien 6 475 Midsund, Nor way

post@mibas.no w w w. a k e r m i d s u n d . n o

ECN is a full supplier of technical consultancy services within most disciplines. Our core business is provision of multidiscipline engineering and project administration services to the oil and gas industry. We offer personnel with varied skills and experience, and provide experienced personnel within all phases of a project, from concept studies to installation and testing as well as maintenance and decommissioning.

Engineering: •

Piping

•

Structural

•

Marine

•

Mechanical

•

Electrical

•

Instrumentation & Automation

•

HVAC

•

Process

•

Subsea Technology

•

HSE

•

Safety

•

Quality & Risk Management

Project Administration and Management: •

Project Management

•

Supply Chain Management / Procurement

•

Planning

•

Cost Control

•

Document Control

•

Logistics

•

Material Administration

•

Technical Documentation

Carreer building opportunities For our employees we offer competitive conditions, and excellent follow-up throughout the assignments. ECN consultants have the freedom and opportunity to be flexible and

independent, and at the same time be part of a professional team.Our employees are given the opportunity to build their careers through working on projects with exciting and innovative technology companies.

167

168

job market

P epperl+ F uchs Pepperl+Fuchs is a leading developer and manufacturer of electronic sensors and components for the global automation market.

Ph o n e : + 4 7 3 5 5 7 3 8 0 0 fa x : + 4 7 3 5 5 7 3 8 4 9

ADdress: FrednesĂ¸ya 21, 3933 Porsgrunn, Norway

i n f o @ n o . p e p p e r l - f u c h s . c o m M AIL A D d r e s s : PO B OX 9 6 w w w. p e p p e r l - f u c h s . n o 3901, Porsgrunn, Norway

Pepperl+Fuchs is a leading developer and manufacturer of electronic sensors and components for the global automation market. Continuous innovation, enduring quality, and steady growth guarantees continued success, since more than 60 years. Pepperl+Fuchs employs 4,300 people worldwide and has manufacturing facilities in Germany, USA, Singapore, Hungary, Indonesia and Vietnam, most of them ISO 9001 certified.

One Company- Two Divisions The Factory Automation Division is a leading manufacturer of industrial sensors designed to address specific market needs on a global basis. We offer a full range of inductive, capacitive, photoelectric, and ultrasonic sensors as well as identification systems, barcode and camera systems, rotary encoders, position measurement systems, cordsets, and other accessories. The Process Automation Division is the undisputed market leader in intrinsically safe explosion protection components and protection of hazardous area applications. Our products enable you to combine a wide range of electronic equipment into complete, application-oriented system solutions. You can choose from many modules of our various product lines: isolated barriers, signal conditioners, fieldbus infrastructure solutions, remote I/O systems, HART interfaces, level measurement devices, purge and

pressurization systems, industrial monitors and HMI solutions, power supplies, alarm systems for oil separators, signalling equipment, lighting as well as emergency shutdown equipment and accessories.

job market

V e x- G ruppen AS Vex-Gruppen AS is a recruitment and temporary staffing agency focused on the oil, gas and energy industry, with a special focus on the subsea industry. From our office in Bergen we supply personnel to most of the leading companies in the segment and strive to provide qualified, competent and effective services to our clients. We can supply personnel to most positions within your company!

Ph o n e : + 4 7 5 6 3 3 6 5 5 0 FAX : + 4 7 5 6 3 3 6 5 6 0

A D d r e s s : Te m a h u s e t 3 r d f l o o r, 5 3 5 3 S t r a u m e , N o r w a y

E M AIL : p o s t @ v e x . n o w w w.v e x . n o

Vex Vex has been a preferred staffing agency to the oil, gas and energy industry since 1997 and has a well known name within the industry. Our advisors work in close relations to the clients and strive to be an extension to the clients own HRdepartment. Through clear communication and clarifications we believe that we can offer better services to our clients.

Services We can supply personnel to every kind of contract that are needed in your company. The most common contract types are temporary positions, both short term and long term, but we do perform recruitment services of permanent personnel regularly. In addition to this we can assist companies in matters related to HR when needed. Our goal is to be your preferred partner in all matters of staffing and recruitment.

Technical personnel

•

Subsea engineers

•

Mechanics

•

Electro engineers

•

Warehouse technicians

•

Automation engineers

•

Electricians

•

Welders

•

Drilling

•

Plumbers

•

NDT

Administrative personnel •

IT-consultant

•

Sales & Marketing

•

Finance controllers

•

Purchasers

•

Type of personnel - positions

•

Reception

We have more than 8000 potential candidates in our online database and most of these are skilled and experienced personnel for positions on/offshore in the oil, gas and energy industry. The candidates in our database range from warehouse personnel to engineering personnel and top management which provides us with a broad and solid pool of potential candidates for you and your company.

•

HSE engineers

•

Co-ordinators

Engineers •

Supervisors/Proj.mng.

•

Mechanical engineers

Quality mngt. System and HSE policies Human resources are our main product and therefore we take safety very seriously. We work in accordance to ISO 9001:2008 and ISO 14001:2004, and are a registered and qualified company in the Achilles and Sellihca database.

Why choose us? Vex may not be the biggest agency in the market, but we are known to be one of the best agencies in the industry! Your company will have your own designated advisor which will serve as single point of contact in all your business with us. Our advisors work as a team and you can be sure that all of us work together to fill your need for qualified personnel. We will continuously search and qualify potential candidates for you and supply you with candidates quickly and efficiently. We have proved our value to many companies during our existence and are eager to supply you with the same competence and quality.

169

Total supplier of materials and welding technology We are a total supplier of materials technology services. Our laboratories are accredited according to ISO 17025. Our highly skilled and qualified staff daily assist offshore clients in a wide range of fields, including training, consulting services, testing and inspection.

Training and certification of offshore personnel All our courses can be tailored to your needs and if preferred conducted on-site at your premises. Our course offerings are comprehensive, and include training of: • • • • • •

Welders and solderers Welding inspectors (NS477/IWI and IWS) NDT personnel and inspectors (NS-EN 473/Nordtest) In-service inspectors, levels 1 & 2 (NS 415) Plastic welders FROSIO surface treatment inspectors

See our website for more course offerings in a wide range of technology, business and quality management fields.

Third party testing and inspection • • • • •

Material testing and analyses Environmental testing of products Qualification testing of products Development, review and qualification testing of welding procedures Notified Body acc. to EU-directive 97/23/EØF Pressure equipment

Contact information Stavanger: Sidsel A. Simensen, (+47) 982 90 229, ssi @ti.no. Kongsberg/Oslo: Carl-Erik Mo, (+47) 915 41 666, cmo@ti.no.

Se flere hundre spennende jobber innen olje- og gass på Offshore.no/jobb

Vi hjelper deg å finne de beste hodene: Henrik Svanæs, A Pressen, Oslo, Telefon: +47 482 98 367 E-post: henrik.svanes@apdm.no

12/

Made in Norway

Selling the Norwegian advantages

M a d e i n n o r way

NOK 170 billion (2011)

Annual international revenue for Norwegian suppliers

Russia

China

Mexican Gulf

Brazil

Angola

Australia

INSTOK’S PRIORITY PROJECTS

174

Angola Gabela, Kizomba Satellites Phase II, Block 31 Phase II, Kaombo, Block 18 Australia Wheatstone Project, Sunrise, Prelude, Ichthys, Browse, Bonaparte FLNG Brazil Whales’ Park North, Wahoo, Waikiki Complex, Waimea Complex, Papa-Terra, Pre-Salt Replicating FPSO’s - Santos Basin, Cernambi (formerly Iracema), Guará Norte, Brazilian drilling rigs, Lula Nordeste China CNOOC EnPing 24-2, LiuHua 11-1, CNOOC LiuHua 19-5, WeiZhou 6-12/12-8W, CNOOC KenLi 3-2 Mexican Gulf Hadrian North, Deep Blue, Julia, Appomattox, Lucius Russia Shtokman, Vladimir Filanovsky Field UK Kraken, Catcher, Bressay, Mariner, Western Isle

m a d e i n n o r way

Global growth - selling the Norwegian advantages Chasing a NOK 332 billion market. The Norwegian oil and gas industry has been on a rapid journey of change in the last decade. International expansion has been faster and more successful that anyone had anticipated. Hundreds of Norwegian companies of all sizes have expanded from their home market into global markets. More than one third of Intsok’s partners have ambitions of doubling international turnover in the next five years. "International revenue for Norwegian suppliers were, according to figures from Menon, at NOK 170 billion in 2011, and growing faster than the Intsok board expected a few years back. The Norwegian offshore market is estimated to be the largest in the world in the next four or five years. Thus we see that some small and medium-sized companies give priority to sell their capacity in the domestic market and downsize the international efforts. It´s important to emphasize that if one should be in international markets, one can not afford to take a rest rocks", managing director Gulbrand Wangen at Intsok says.

225 partners International expansion is not only on the agenda in the larger companies. Intsok has now more than 225 partners which with their subsidiaries represents more than 300 individual companies. The expected offshore market size in 2015 is USD 332 billion, an increase of approximately 60 per cent compared to its value of USD 209 billion in 2010. This new period of growth will be driven by activity in the same markets as before. Norway is still the world’s third largest oil and gas exporter. Export earnings are no longer only the revenues from the export of oil and gas to global customers. The export of goods and services is also making major contributions. Australia, Brazil, the UK and the US Gulf of Mexico are seen by the partners as the markets with the highest potential for further growth.

Huge potential A survey among Intsok´s partners in late 2011 showed that the industry had the technologies, products and services required to grow their business in the years to come. Subsea and increased recovery are two markets where Norwegian technology has a huge international potential. "We see a major supplier development in the subsea market, where there is fierce competition to come up with good solutions. GE Oil and Gas, FMC Technologies and Aker Solutions has traditionally been the main players. Now, Framo, with Schlumberger as owner, and Siemens have made the Norwegian-based expertise even stronger", Wangen says. "We work specifically with increased production in South East Asia, the Middle East, United Kingdom and Brazil. We believe that Norwegian niche technologies may be of interest there. It is about reservoir monitoring, upgrading of processing facilities, integrated operations, including the collection of well information and monitoring of corrosion and sand infiltration."

175

176

M a d e i n n o r way

Main markets The main markets reflect Intsok partnersâ&#x20AC;&#x2122; priorities and they include Australia, Brazil, China, Russia, the UK, and the US Gulf of Mexico. The organization has also given priorities to markets like Angola, Canada, India, Indonesia, Kazakhstan, Malaysia, Mexico, UAE and to shipyards in Korea and Singapore. Developments in Azerbaijan, North and West Africa and countries in the Middle East are also under observation. "Korean shipyards, such as Daewoo, Samsung and Huyundai, are winning international contracts, also on the Norwegian shelf. Therefor it is important for Norwegian suppliers to position themselves to deliver to these yards. Intsok are in the process of recruiting a consultant to assist Intsok's partners in doing business with them." Offshore production in the US Gulf of Mexico market was at an all-time high in 2008, but the effects of the financial crisis, combined with the Deepwater Horizon accident in 2010, have led to a severe decline. Going forward, the market in the Gulf of Mexico is expected to enter a new period of growth.

Major contracts coming Brazil has seen a significant increase in offshore production during the last decade, going from nearly 1.2 million barrels per day in 2001 to almost 2.1 million in 2010. The ambition is to more than double production by 2020. Brazil has received global attention for its massive discoveries in the Santos Basin referred to as pre-salt reservoirs. The Brazilian offshore market grew rapidly from 2005 to 2010, increasing from USD 8.2 billion to USD 25.5 billion. The market is expected to reach USD 42 billion in 2015 as the pre-salt projects move forward. "In Brazil, we see that the major contracts in the floater and rig markets are being awarded as we speak. The train has not left the station, but there are many contracts coming in 2012 and 2013. Those companies already present, will have major benefits, and it will be significantly more difficult for newcomers."

Australian gas The Australian offshore market will become one of the largest offshore markets in the world due to investments in LNG projects like Gorgon and Wheatstone (Chevron), Ichthys (Inpex), Prelude (Shell) and Browse LNG (Woodside). "The major gas projects and the absence of requirements for local content make Australia a key market. The question is whether Southeast Asia will continue

to demand the gas from Australia. We see that China does as the U.S. looking for shale gas, which has the potential to turn upside down on the gas market in the region. On the other hand, Japan has closed down its last nuclear reactor, so there is good reason to believe that the demand for gas will increase."

Mariner and Bressay The UK offshore oil province is among the more mature in the world. The market has grown steadily and may reach an annual capital expenditure of more than USD 33 billion by 2015 up from around USD 20 billion in 2010 .The operator landscape in the UK is highly fragmented. All of the majors are present and several North American integrated and independents have entered the market. Statoil will become one of the more important operators in the period when the company moves its Bressay/Mariner development forward. "We also see a trend that international contractors with regional adaptations, such as Technip, Petrofac and WoleyParsons are winning several major contracts. Oil companies give priority to large contractors who take responsibility, and small and medium-sized suppliers will have to sell their services through them."

m a d e i n n o r way

Market overview Brazil Brazil is on its way to becoming one of the largest global oil producers and has become one of the highest priority markets for the Norwegian petroleum cluster. Many Norwegian firms are well established in the country and have built significant positions. Norwegian financial institutions are providing finance and guarantees for projects in Brazil. Petrobras is the dominant operator and operates alongside more than 70 national and foreign oil and gas companies. Petrobrasâ&#x20AC;&#x2122; ambition is to grow production from 2.5 million barrels of oil and gas in 2009 to more than 5.7 million barrels oil equivalents by 2020. Petrobras is planning to spend more than USD 100 billion in the Brazilian upstream sector through 2014 and is engaged in a major procurement programme, both in Brazil and internationally. The success in the oil and gas sector is a product of maintaining an open investment environment that has created a dynamic and competitive sector where experienced and technologically advanced companies have joined forces with Petrobras. Brazil has introduced an ambitious national content programme with substantial expansion of the oil and gas industry in Brazil and is encouraging international firms to establish activities in the country to serve the growing demand. The Government has launched a set of reforms for the hydrocarbon sector in Brazil that will make Petrobras - already the largest deepwater producer in the world the operator of future pre-salt developments.. The company is investing substantially in new technology for deep and ultra deep waters. Statoil activity: "Brazil is a country where we can fully apply our offshore technology expertise developed on the Norwegian Continental Shelf. Statoil is already well established in Brazil. We are currently the operator and hold a 60% stake in the large Peregrino field 85 km off the cost of Rio de Janeiro and in seven exploration licences. Statoil also cooperates with the national oil company Petrobras with a number of commercial and technological agreements in place."

177

178

M a d e i n n o r way

Gulf of Mexico Offshore production in the US Gulf of Mexico market was at an all-time high in 2008, but the effects of the financial crisis, combined with the Deepwater Horizon accident in 2010, have led to a severe decline. Going forward, the market in the Gulf of Mexico is expected to enter a new period of growth. Brazil has seen a significant increase in offshore production during the last decade, going from nearly 1.2 million barrels per day in 2001 to almost 2.1 million in 2010. The ambition is to more than double production by 2020. More than 100 Norwegian companies are present in Houston and others are looking at establishing a presence in the market. Many world-class projects on hold are of interest to the Norwegian petroleum cluster, which is able to deliver the advanced technological solutions well suited for the challenges in the Gulf of Mexico. Statoil activity: In just a few years Statoil has positioned itself as a significant player in the exploration and development of oil and gas deposits in the Gulf of Mexico (GoM). Statoil has ownership interests in six producing offshore fields in the US. The company is one of the largest licensees in the deepwater areas of the Gulf of Mexico with a big portfolio of exploration licences as both operator and partner.

Russia The Russian oil and gas market attracts considerable interest from the Norwegian petroleum cluster. This market, particularly onshore, is huge and future opportunities in Arctic waters are exciting. The delineation solution agreed upon has removed the obstacle of unclear boundaries for future exploration and development in the Barents Sea. Intsokâ&#x20AC;&#x2122;s activities in Russia attract significant interest from partners and from Russian companies. The Partnership Programme between Russian and Norwegian Oil and Gas Industry was launched in 2005 and has been a success. Introducing partners to key clients and potential Russian partners have a high priority and business-to-business meetings have become an excellent platform for companies to develop closer relations. The project supported a total of 57 companies establishing a strategy plan for the Russian market. The Shtokman field development decision is eagerly awaited by many in the Norwegian petroleum cluster. Statoil activity: At present, Statoil is working on the Kharyaga and Shtokman projects, while maintaining and further developing a significant presence in north-western Russia through cooperation with authorities, industries, universities and research centers. In April Statoil and Rosneft signed a cooperation agreement. The companies have agreed to jointly explore offshore frontier areas of Russia and Norway and to conduct joint technical studies on two onshore Russian assets.

m a d e i n n o r way

Transocean´s Cajun Express in the Gulf of Mexico

United Kingdom

Australia

The UK offshore oil province is among the more mature in the world. The market has grown steadily and may reach an annual capital expenditure of more than USD 33 billion by 2015 up from around USD 20 billion in 2010 . The operator landscape in the UK is highly fragmented. All of the majors are present and several North American and Canadian based integrated oil companies and independents have entered the market.

Australia’s LNG exports are expected to almost double in the next five years to almost 28 million tons per year. Giant projects like Gorgon, Browse, Wheatstone and Pluto LNG will make the country into one of the world’s largest LNG players. More than 20 LNG projects are under evaluation; many of the projects are based on gas from coal bed methane in the Gladstone area. The projects could make Australia the largest LNG exporter in the world by the end of the decade. Shell, BG, Total, ConocoPhillips and Petronas are in partnership with local firms and aim to bring new coal bed methane projects on stream in Queensland after 2014.

If all the development plans under consideration by companies come to fruition, annual investment could be sustained at around USD 12 billion annually for the next five years. Some USD 100 billion is forecasted to be invested in the next decade. This will have a significant impact on the country’s hydrocarbon production. The UKCS market for many years has been one of the largest and most important markets internationally for the Norwegian oil industry. More Norwegian companies are engaged in activities on the UKCS than in any other international market. Many small and medium-sized Norwegian-based companies are successful in the UK. Statoil activity: The company´s UK subsidiary is a partner in UK oil and gas production and is involved in exploration in 21 licences. The Mariner and Bressay fields are operated by Statoil and are presently being matured for a development decision. The two heavy oil field assets will be operated out of Aberdeen. Mariner and Bressay together are thought to contain around 3.5 billion barrels of oil equivalent of which about 600 m boe is thought to be recoverable. Both are targeted for first oil in 2015 and 2016 using large platform-based production facilities. Statoil is also a partner in the producing fields Schiehallion, Jupiter and Alba as well as in several exploration licences offshore UK, including the West of Shetland oil and gas discoveries at Rosebank and Laggan and Toremore .

Australia also has the potential to become one of the world’s largest subsea markets as a result of the many projects under way. Many Norwegian companies have been active in the Australian market for years.

179

180

M a d e i n n o r way

Heavy lifting. Scarabeo 9 at the Yantai Raffles in China

China A main target for the Chinese national oil companies is maintaining China’s sustainable economic growth and ensuring security of the energy supply. The country is accelerating exploration and development of domestic resources as well as expanding its international upstream expansion. The Chinese National Oil Companies are acquiring assets in most of the promising hydrocarbon basins around the world. CNOOC’s partners, Husky Energy and BG, are drilling in the deep waters off China and are expanding their deepwater capacity. The targeted annual natural gas output for CNOOC from deepwater is 100 billion cubic meters in 2015. LNG features prominently in China’s energy strategy and the country is building a large number of terminals to receive LNG from the Middle East, Australia and Indonesia. The three leading Chinese National Oil Companies are maintaining their high level of investment, backed by Government financial support. Substantial growth is expected to continue in the drilling segment onshore, in onshore MMO and last but not least in the development of the gas infrastructure, LNG plants and pipelines. The Chinese oil and gas industry is expressing interest in developing closer relations to the Norwegian petroleum cluster. Statoil activity: The company has a business development office in Beijing which builds relations with Chinese National Oil Companies (NOCs) and authorities, aiming to develop new commercial opportunities in the country. The China National Offshore Oil Corporation (CNOOC) is a partner in several licences of Statoil’s Gulf of Mexico portfolio and Sinochem is a 40 per cent partner in the Peregrino offshore development in Brazil.

m a d e i n n o r way

C ameron Discover Cameron – a leading provider of flow equipment products, systems and services to customers throughout the energy industry worldwide. We are focused on serving nine market segments, all supported by comprehensive global aftermarket services.

Ph o n e : + 4 7 5 1 4 1 5 0 0 0 FAX : + 4 7 5 1 4 1 8 1 6 0 norway@c-a-m.com w w w. c - a - m . c o m

Cameron delivers high performance drilling equipment, multifunctional rigs, and world class control systems to the international energy industry. Competence, drive and experience make us a strong partner, providing unique solutions and advanced technologies. Our high performance products demonstrate our commitment to deliver next-generation solutions. Our automated drilling and handling equipment allows the entire operation to be remote controlled. This makes our products safer, more reliable and easier to use.

Main Product Lines •

Offshore Drilling Packages

•

Mud Systems

•

Well Intervention Packages

•

Offshore Modular Rigs

•

Land Rig Packages

•

Services

Cameron is certified according to ISO 9001:2008

ADdress: Mekjar vik 1 4070 Randaberg, Nor way

181

13/

Supply bases Moving north

184

s u p p ly b a s e s

Asco, Tananger

Waiting for news Runar Hatlevedt is playing a waiting game. He's waiting for news. News of what is happening in Kirkenes, in the far north east of Norway. Why? Because what happens there in the next few years could have significant implications for his business. And what is his business? He's the main in charge of Asco's logistics operations in Norway and that means logistics for many oil companies in Norway, from ship to helicopter fuel, warehousing and supplies, and holding thousands of spares for offshore equipment. And currently the company is bidding to the Shtokman Development AG (SDAG) to become the logistics base operator in Kirkenes, which if successful could bring with it the opportunity to become the logistics provider for Russia's huge Shtokman offshore gas development – if it comes to fruition. But all that is a long way off just now... Taking time out from his schedule managing this vast Norwegian network which includes seven shore bases on the country's eastern coastline and possibly more if the Kirkenes base comes to fruition – Hatlvedt explains just what makes this enterprise work like a Swiss clock, 24 hours a day, 365 days a year. Thousands of items – if not millions – large, small, urgent and non-urgent, move in and out of the Tananger base and others managed by Hatlevedt and his teams across Norway. One cannot help wondering if anything ever gets lost . “Very, very rarely,” Hatlevedt says. Ships turnaround in hours. “We have benchmarked our operations here in Tananger with other bases and we are among the most efficient,” he boasts. It is a boast built up by years of experience. (Other base operators (NorSea and Aker) At the end of last year private equity group Doughty Hanson bought 80% equity in the company from Asco's original owners Phoenix Equity Partners. Asco has had a new management team in place since a turnaround in 2006 . Just prior to that, Asco had “overstretched itself” a company spokesman explains, resulting in banks being brought in to rescue what was recognised as being a highly successful business, but one which had “got into difficulties,” as bank funding started to dry up at the same time as the oil price nosedived.

s u p p ly b a s e s

Asco bases

Artic base:

Seen as a two sites, at Hammerfest and TromsĂ¸, the Artic base is regarded as a gateway into the Russian offshore sector from Western Europe.Although Kirkenes lies just inside Norway, and about 8 kilometres (5 miles) from the Russian border, it is seen as having major potential to serve Shtokman, although any primary base for the project would have to be on Russian soil Asco believes. sq. m of external storage nearby.

Farsund:

Opened 2007, Farsund primarily serves the Alcoa Aluminium company, but it acts as a back up for Tananger providing an 14 m deep and 131 m long quayside, 3,500 sq. m of warehousing, 8,000 sq. m of external storage and it offers another 50,000 sq. m of external storage nearby.

Kirkenes:

Asco Norge intends to establish Kirkenes base but there nothing concrete there yet. A site has been identified which could provide quayside berths with water depths between 12 and 40 metres, and between 30,000 and 40,000 sq. m of storage, with the potential to extend up to 1,000,000 sq. m. But Kirkenes would be a multi-use site, not exclusive to one logistics operator. Operations could commence there within a month or two, depending on the outcome of the Shtokman tender and Asco believes that is two to three years away.

Kristiansund:

Established 1999, providing 53,000 square metres of outdoor laydown area.. 70 metres of quayside with a depth of 10 metres. It is owned 50% by Asco Norge and 50% by Mongstad Base.

Tananger: Mongstad base:

Asco works in partnership with Mongstadbasein Bergen: The site was established in 1984, originally supporting Norsk Hydro operations on the Norwegian Continental Shelf. Mongstad Base is part of the Frank Mohn group.

SandnessjĂ¸en:

Estabished 2009 mainly to support BP's Skarv project, located in Horvnes with covered storage of 3,000 sq. m and 30,000 sq m external, office, and two 80 m berths, with marine fuel tanks and bulk plant tanks of 1,200 sq. m.in the area.

Established since 1995 at Sola Havn, a multi-purpose harbour with its own supply terminal,Tananger provides 12,000 sq. m of warehousing, and 80,000 sq. m of external laydown areas, offices, plus chemical storage tanks, four sea berths with a water depth of 11 metres, plus custom chemicals storage. Work is underway to further develop Tananger with new ship berths and extensions to those already there, and there is space for a diesel storage facility. On average the base sees 200,000 tonnes of cargo moved a year.

185

186

s u p p ly b a s e s

Asco, Kristiansund base

Billy Allan came in as group chief executive with a ten-year plan to revitalise and expand Asco into the finely honed logistics machine it is today. Back in 2006 about 90% of the company's business was based on a logistics support operations serving the UK Continental Shelf, from Aberdeen, Peterhead, and Great Yarmouth. With the new management came a desire to reduce dependence on the UKCS which had been the backbone of the company, and to rebalance the portfolio with international expansion. A decade later, Asco is a very different from the business operating in 2005.: From a 90/10 balance between the UKCS and the Rest of the World then, the ratio is now more like 60% UK and 40% the rest of the world. Norway is a good proportion of that 40% Today in Norway, Asco has many operational bases: Arctic base, in two locations - Kirkenes is planned and another is at Hammerfest/Tromsø. Others are in Farsund; in Kristiansund; at Mongstadbase near Bergen; at Sannessjøen, and at Tananager and Dusavik, just outside Stavanger. Each one provides differing services, but the overall scope in Norway encompasses on and offshore logistics, marine, waste and freight management, personnel and consultancy on logistical issues.

Expansion Today the company is global,operating also in the Middle East in Oman – where an office opened in 2010, in Darwin Australia – commonly described as one of the fastest growing oil and gas sectors in the world – and in Trinidad, and Brazil, as well as Houston. As Darwin grows into a major new oil and gas centre, Asco cites $110 million of investment which commencing in April this year to create a marine supply base there by the end of 2013, supporting up170 jobs in the long term. Already providing around $150 million of energy services and supplies a year, activity in Darwin is expected to grow to $420 m in the next 20 years. This comes after Australia's Northern Territory Government identified the need for a dedicated base in the region, supporting developments in the Northern Territories, in the Timor Sea, and the Browse Basin. Construction of the Darwin base will be by an Australian company, Macmahon, and it will be operated by Asco. Today Asco is operating in India, based out of Mumbai and the company has also supported Cairn Energy's drilling programmes over the last couple of years in Greenland, and Tullow Oil's in Ghana, and it has rig move operation in Alberta, Canada. But there is still more to do as part of a ten year plan, Asco's chief Billy Allan and his management envisaged the need for additional investment five years into that plan, allowing further expansion and acquisitions, joint ventures and alliances.” That was how Doughty Hanson, an equity investor, came into the business in 2010. Although Nigel Doughty died earlier this year, he and Richard Hanson, a former chairman of Nottingham Forest Football Club, were ex-City fund managers, (check). Doughty Hanson personnel are now on the Asco board, and the company is working up its next five year strategy with around £100 million available for expansion. West Africa is in its sights, too where investment opportunities are still being assessed.

Services “We anticipate more demand coming from a need for greater integrated logistics management services – a demand from customers to harness their logistics activites. South America is regarded as less advanced although the company has just appointed a country director for Brazil, based in Rio While the North Sea is mature enough to welcome an outsourced integrated logistics services, other parts of the world are not. “We have recognised layers of service offering,” Hatlevedt says. “In joint ventures you have to bring the global experience of processes and HSE, and provide partners with the opportunity to look at that integrated logistics management service.” To provide that, working with local authorities is an important part of the company's offering, he emphasises: Because while Asco operates at base for the long term, it does not seek to own the land or the assets, but prefers to lease them instead. But that same business model cannot be applied to every base it seeks to operate, certainly not outside Norway. “Norway has been a great business model in terms of how a company can take that service. But there are different standards in different areas, and different areas of progress.” “Corporately, we do not have one single competitor globally.” Hatlevedt talks about 'managed growth': “If a joint venture is possible, we will do it to reduce risk,” he says. Asco prefers to rent or lease property, and to integrate with a community, creating jobs, and commercial

s u p p ly b a s e s

final investment decision – which was originally anticipated last year but has now slipped. “I still believe Shtokman will happen because it is a vast field – perhaps the world's biggest offshore gas field,” Hatlevedt suggests.

opportunities. It does not want long term ownership of infrastructure. Reflecting this approach, co-operation with the public harbour board in Tananger has been sought so that the local authority has provided infrastructure investment – owning legacy assets which will remain once the oil industry has moved on, perhaps in half a century from now. Hatlevedt says involving a public harbour board in developing a base benefits everyone, by taking a part in value creation through owning infrastructure.“We do not need to own the land,” Hatlevedt explains. “When you move into a new area, there is a high focus [emphasis] from the government and oil community to have a high focus on local content to create jobs for local people.”” He talks of localisation, by which his company has sought to create jobs for an area without flying in expertise – so in Sannessjøen, in Horvenes, he boasts of 100% local personnel in the Asco workforce there. In Trinidad the figure is near 100%, and in Baku, it is up to 99% and Australia about the same. And in the Middle East about 90%, where the Sultan of Oman has introduced an “Omanisation” project to ensure local jobs for local people. “The ideas is that we bring local people on board,” Hatlevedt says. Asco Norway was established in 1995. Before BP operated its own supply base as did all the other operators. ConocoPhillips still operates their own supply base in Norway. In 2011 the company handled 350,000 tonnes of cargo and about the same in 2010. Now employing 115 people, it has trebled Norway turnover from NOK 100 m in 2006 to NOK 330 m last year. But back to the future: Asco is bidding to provide the supply base for Shtokman, to provide the base infrastructure for a northern supply base, and secondly, for the supply base operational tender. It is going to be a long wait before the outcome of bidding is known: “It's lasted two years and it is still ongoing,” says the Asco chief, with a barely discernible sigh. Why so long? There are many reasons why the tender outcome is still not known:Rules and regulations are part of the explanation, and tax issues are still being discussed. Development of shale gas in the USA has taken away some of the market for Shtokman gas Recently there has even been speculation that Statoil could pull out of the Shtokman partnership with Gazprom and that Shell might join it, leaving still more questions over the future of the Barents Sea proejct. Russian media reports indicate Total and Statoil's chief executives, Christophe de Margerie and Helge Lund, have been pressing Russia's government and Shtokman Development AG for a better tax deal for the field, before making a

Beyond Shtokman, he also talks of the value of a Kirkenes base in the context of the the Northern and Eastern parts of the Barents Sea and as an operations hub for Russia, as well as for future Icelandic exploration: “Iceland is very interesting because they have just been through a licensing round,” he notes. And Jan Mayen Island, a Norwegian territory, which is closer to Iceland than Norway, could hold future exploration potential. Offers under a Second Icelandic licensing round closed on 2 April this year and awards are expected before the end of November, offering 42,700 sq. km of territory in the Dreki area north-east of Iceland, with water depths from 800 to 2,000 metres, encompassing the southern tip of the Jan Mayen microcontinent, which is thought to have split from Greenland and Norway up to 60 million years ago. Asco has linked up with an Icelandic partner, Oliudreifing, a major operator of fuel plants, anticipating new opportunities there. “It will be three or four years before we see rigs out in the field but it is very important to be the first out there,” Hatlevedt says.

Facts and figures Growth in energy logistics has been reflected in the figures that Asco has been able to report: For the year ending December 2010, revenue was up 32% to £516.7 million, from £391.8 million in 2009, while profit was up slightly in 2010 to £29.2 million from £27.2 in 2009, and pre-tax profit was up to £5 million from £1.65 million in 2009. During 2010 Asco was heavily involved with BP in the US Gulf of Mexico oil spill clean up after the Macondo blowout that year, when a team of eight were embedded within BP's crisis management centre in Houston.

187

188

s u p p ly b a s e s

Tananger base outside Stavanger

A player from the start Several players compete in the North Sea logistics markets and NorSea Group has been one of them from the start off the offshore industry. Ten bases are provided by NorSea – whose history goes back to 1965 - to serve the North Sea, Norwegian Sea and Barents Sea sectors – stretching from the far north to the south of the country. In the north the company has Kirkenesbase, Polarbase at Hammerfest, then Norbase in Harstad; Helgelandbase in Sandnessjøen, Vestbase in Kristiansund, then Coast Center Base in Bergen, Storyboard in Stord. Further south, its assets include Dusavikbase and Tanangerbase, both in Stavanger, and another, LTU at Farsund. Like its offshore rivals, NorSea handles supply base operations, commercial terminal services, supply chain management, and marine logistics. That means providing offshore operators and their contractors with terminals and handling equipment, indoor and outdoor storage, dry and wet bulk services, and gas and oil. Between 1998 and 2012, the company has handled 4,926 kilometres or 6.658 billion tonnes of pipe, for the Jade in the UK sector back in 1998 to the Nord Stream pipeline in 2009. Along the way it has handled 238 kilometres or 200,00 tonnes - of concrete coated pipe for Ormen Lange , and another 1,166 km or 1.1 million tonnes of concrete coated pipe for the Langled pipeline.

s u p p ly b a s e s

K VA L E A DVO K AT F I R M A DA Kvale is a leading Norwegian commercial law firm founded in 1988. In the beginning, the firm’s main focus was the petroleum and energy business. Today, Kvale, with a total of approximately 60 lawyers, has evolved into a top tier firm that provides services within all areas of business law. Throughout the years since its inception Kvale has shown consistent organic growth.

Ph o n e : + 4 7 2 2 4 7 9 7 0 0 FAX : + 4 7 2 1 0 5 8 5 8 5 M AIL : p o s t @ k v a l e

A D d r e s s : PO B o x 1 7 5 2 , V i k a – NO - 0 1 2 2 O s l o , Norway

w w w. k v a l e . n o

Oil & Gas

Kvale’s Way of Working

Kvale's core oil & gas team now counts more than 10 lawyers. Statoil ASA has been Kvale's main oil & gas client since the start-up of the firm. Kvale now acts for many of the large and medium sized oil and gas companies and governmental bodies, including DONG E&P Norge AS, ConocoPhillips Skandinavia AS, A/S Norske Shell, BG Norge AS, Rocksource ASA and the Norwegian Petroleum Directorate.

When Kvale is given an assignment, the firm evaluates, in close cooperation with the client, the challenges of the case. Kvale sets up a team with dedicated lawyers, covering all the relevant legal areas involved, but the firm is also cautious that resources are only drawn upon when needed. Kvale is recognized as being highly cost efficient and still able to handle the most comprehensive matters within the set deadline. The firm is dedicated to top service and high quality, resulting in top rankings within several areas by leading rating bureaus. Kvale’s experienced lawyers provide day-to-day professional guidance as well as assisting with legal counselling, representation, negotiation and litigation.

The Norwegian Petroleum Directorate is a governmental specialist directorate and administrative body reporting to the Norwegian Ministry of Petroleum and Energy. The oil and gas companies listed above are all operators on the Norwegian continental shelf, and Kvale's legal assistance has covered a broad range of the contractual and regulatory challenges in the petroleum sector. We have been involved in some of the largest litigation cases within the oil & gas industry, and are rated as a top tier oil and gas firm. Jens Brede was rated as Norway's best oil & gas lawyer in 2010 (source: Best Lawyers), and Yngve Bustnesli is also highly recommended. Bustnesli is one of the co-authors to the reference book on Norwegian Petroleum Law published in January 2010.

“Market sources admit themselves 'tremendously impressed' with the quality of the firm’s work.” Chambers and Partners "Kvale Advokatfirma DA is the best law firm in oil and gas sector, procurement and construction."Legal500

Contacts: Jens Brede: Tel: + 47 901 74 409 – Email: jhb@kvale.no

Yngve Bustnesli: Tel: + 47 993 35 757 – Email: ybu@kvale.no

189

14/

Shipyards

Record order intake in 2012

192

s h i p ya r d s

Aker Solutions Egersund

Record order intake in 2012 Norwegian shipyards have on this year's seven months secured orders for nearly 19 billion, the highest orders since before the financial crisis. Order intake is the best since 2007, according to the organization Norwegian Shipyards. The main reason for the good times are the oil companies' investment plans. Most orders apply to offshore vessels.

Overview of the Norwegian offshore yards Aker Stord Aker Stord AS, at Stord in Hordaland and owned by Aker Solutions, has since1975 been a major player when it comes to implementing large and complex projects within the oil and gas industry serviing both Norway, and international markets..

Aibel Haugesund In Haugesund Aibel works with design, maintenance, modification and construction. Itâ&#x20AC;&#x2122;s modification department was responsible for the Snorre A and B platforms, and operates maintenance work on the plant. At the shipyard, one of the modules to Gudrun deck has been built. This offshore yard in Haugesund has a long industrial history. The yard has been owned by both local and foreign owners. During the summer of 2007, Aibel took over the business.

Aker Solutions Egersund Module-and subsea fabrication. Specialised towards fabrication and testing of subsea structures. Aker Solutions in Egersund is one of Aker Solutions three Norwegian yards. Aker Solutions in Egersund has always been known as the module-Yard. mainly because of its impressive track record. but also because its facilities are tailor-made for module fabrication. In addition. Aker Solutions in Egersund has also specialised towards fabrication and testing of subsea structures. and has over 15 years experience fabricating subsea structures at the yard.

s h i p ya r d s

fabrication of modules, complete deck structures, while also providing offshore maintenance and modifications services, plus subsea installation work and fabrication of structural steel and piping, including surface protection.

CCB Ågotnes

CCB

Aker Verdal: Jackets The main focus is steel jackets (substructures) for offshore platforms, down to ~200 m water depths.

Bergen Group Halsnøy Type of newbuildings: Offshore vessels. Drilling Vessels. Type of repairs/ conversions: Offshore. seismic. fishing. general cargo vessels.

Bergen Group Hanøytangen Type of newbuildings: Offshore structures. Semi-submersibles. Specialized vessels. Type of repairs/conversions: Offshore structures. Semi-submersibles.

Bergen Mekaniske Verksted Laksevåg Supply. Offshore Construction. Seismic. Oil Recovery. Research and Fishing Vessels. Ship modules. General cargo medium size.

Bergen Group Kirkenes Type of repairs/conversions: Docking and classification work. Conversion/ Outfitting/ Lengthening. Machining. Surface treatment - sandblasting. metallizing and painting. Steel and aluminium work. Electrical installations. General maintenance. Quay services.

Bergen Group Rosenberg Bergen Group Rosenberg is centrally located in Stavanger harbour. With about 600 employees it is one of the major contractors within the oil and gas market to the Norwegian Continental Shelf. This yard operates within a wide spectrum of projects and the orders varies from “small and simple to large and complex”. It can perform projects of all types from fabrication contracts to complete EPCIC (Engineering, Procurement, Construction, Installation and Comissioning) projects within all its market areas. The yard can deliver design and study contracts, and has the capacity for the

The base, which covers about 7 hectares, has 800 metres of quayside, some with a very good water depth of up to 50 metres and with no weight limits, 45,000 m2 of workshops and warehouses. Operating as the main supply base for the Tampen area of the North Sea , it serves the Statfjord, Gullfaks, Veslefrikk, Troll, Huldra and Kvitebjørn fields.

CCB Kollsnes Together with Naturgassparken AS, Coast Center Base (50/50) established the company CCB Kollsnes AS. The company is managed by CCB and located at Naturgassparken in Øygarden municipality and the operating companys is aiming to provide logistics services with a specific focus on renewable energy companies.

CCB Helgelandsbase Located in Sandnessjøen CCB Helgelandsbase is the main supply base for the Norne field in the Norwegian Sea. The company also provide logistics services to oil companies in connection with exploration and production activities between N 65.30 and N 68.

CCB Vardø Barents Base Near the city of Vardø in Finnmark County CCB Vardø Barents Base AS (VBB) is focussed very much on the far north. VBB's main purpose is to provide logistic services to the oil and gas industry in both the Norwegian and Russian sectors of the eastern Barents Sea and .CCB owns 50% of the company.

CCB Kirkenesbase CCB Kirkenesbase AS location in Kirkenes is strategic for oil and rig companies whose activities are carried out in the north eastern Barents Sea.

193

194

s h i p ya r d s

In Sandnes OneCo manufactures products for the Oil and Marine market

Drammen Slip og Verksted The main activities of the Yard are Repairs and Conversions of Ships. The Specialities includes Lengthening. Upgrading and Refurbishing of modern and advanced vessels focusing in on Offshore Support Vessels. Cruise- and Passenger Ships and Ferries.

Eydehavn Yard (Nymo) Located on Norway's south-east coastline, this site started out as an aluminium plant. It was rebuilt as a steel construction and shipyard in 1975. AS Nymo took over the site in 1991.The facilities today comprise a main assembly hall measuring 60 metres long, by 30 metres wide and 24 metres high, and it is equipped with 200- and 50- tonne overhead cranes for integration testing of subsea systems.

Fosen Yards Type of newbuildings: RO-RO/Passenger Ferries. Supply/Handling Vessels. Offshore Vessels. Seismic Vessels. Car Ferries. Cruise.

Fitjar Mekaniske Verksted AS Main activities at FMV are new building. outfitting and maintenance of vessels. for the fishing and offshore supply industry.

Fjellstrand AS Type of newbuildings: High speed car and passenger catamarans. Offshore vessels. PSV. MPSV etc. Offshore Hotel Modules. Living Quarters. Workboats.

GMC Yard Stavanger Type of repairs/conversions: All types of repair. conversion. docking and modifications on ships and rigs.

Havyard Leirvik AS Type of newbuildings: Offshore Support Vessels. Ice Breakers. Fishing Vessels.

Kleven Verft AS Type of newbuildings: Offshore service vessels. Fishing vessels. Passenger-/Cruise ships.

s h i p ya r d s

Myklebust Verft AS The shipyard is located in Gursken in Sande municipality. 20 minutes from Ulsteinvik and one hour from Ålesund. The shipyard delivers complex offshore service vessels. coastguard vessels and large state-of-theart fishing vessels.

OneCo During the spring of 2012 the Norwegian company OneCo took over the Keppel Offshore & Marine's stake in Keppel Norway. This yard is located in Sandnes, close to Stavanger, and even closer to the Forus industrial estate housing a number of oil companies and many more oil service companies.

Randaberg Industries Randaberg Industries AS (RI) was established in 1946 and was initially engaged in a variety of mechanical work. Over the years the company has developed a wide range of products and services. and today has a leading position within engineering. fabrication and yard services.

Simek A/S Flekkefjord Type of newbuildings: All kinds of vessels up to approximately. 90 meters. Type of repairs/conversions: Floating only.

STX OSV (Aukra) Other relevant information : The range of vessels types built by STX Europe in Norway includes platform supply vessels. anchor handlers. icebreakers. arctic vessels. fishing vessels. naval crafts. seismic vessels. coastguard vessels and chemical tankers.

STX OSV (Brattvåg) Platform supply vessels. anchor handlers. icebreakers. arctic vessels.

STX OSV (Brevik) Platform supply vessels. anchor handlers. icebreakers. arctic vessels.

STX OSV (Langsten) Platform supply vessels. anchor handlers. icebreakers. arctic vessels.

STX OSV (Søviknes) Platform supply vessels. anchor handlers. icebreakers. arctic vessels.

STX Europe Florø STX Europe’s yard in Florø is a traditional shipyard that today performs ship repair and conversion activities. The yard is equipped to perform classification, maintenance and repair work on oil rigs, in addition to ship repair. Other target areas include building subsea and offshore steel constructions.

Ulstein Verft AS Ulstein Verft AS builds and delivers special-purpose ships. including offshore service. offshore construction. seismic. cable and research vessels. Typical projects include the building of state-of-the art vessels with a large amount of sophisticated equipment requiring a high degree of project management and technical know-how.

195

196

s h i p ya r d s

Time does not stand still at Westcon Øystein Matre, CEO at Westcon Yard, believes hard work and persistence to be the secrets of the yard’s success. Westcon Yard in Ølensvåg, owned by the Matre family, has over the years become one of the leading in the North Sea with a total of more than 100 rig arrivals. When the managing director for more than 30 years, Øystein Matre, is asked to summarize the years and look into the future, he recalls a portrait interview of his father Georg Matre in the local newspaper. “«Time does not stand still» was the headline. After his retirement he drew from his vast experience of life to gaze far into the future. He taught us how to find the right balance between short-term good ideas and long-term visions”, Øystein Matre says. Westcon Yard has been successful in the market for rig modifications, which has become a central part of the yard next to the divisions of repairs and new building of ships. The success is, according to Øystein Matre, a result of hard work performed by skilled and competent people, and the courage to take long-term decisions. “We have invested heavily in the upgrade of the yard. This includes, among other things, an improvement and extension of the quay, leveling and preparation of the sea bed to handle jack up rigs, and a new crane to handle the biggest rigs. This means that we can provide service for up to three offshore rigs simultaneously”, Matre says. Such a rig triple occurred in the spring of 2012, when the rigs COSLInnovator, Scarabeo 8 and West Elara were all present in the Ølensfjorden by Westcon Yard. The yard’s order book suggests that also the fall of 2012 will be busy, with the possibility of a similar rig triple-event. Before the summer of 2012, Westcon Yard secured the contract for Deepsea Bergen. Also the rigs COSLPromoter and West Alpha will be arriving at the yard the fall of 2012. Although the future looks promising for Westcon Yard, Øystein Matre says that it also brings challenges. “The world is in great economic change – a crisis in the West and economic development in the East. Southern Europe faces major challenges after living beyond their means, while Norway is surfing on the world’s thirst for energy. And the climate changes affect the future and our global vision whether or not the changes are manmade. All this makes it challenging to look into the crystal ball”, Matre says. Westcon’s strategy is to continue to manage with a focus on the future developments, through the right balance between the best solutions both on short and long term. “There is always a room to perform easier and smarter. New technological developments and standards lower production costs. Westcon Yard shall be innovative and smart so that we also in the future will be the preferred yard in the North Sea.” Westcon dock

197

198

s h i p ya r d s

Building a better business Without such a large coastline and its proximity to large fish and petroleum resources, the shipyards on the west coast of Norway could never have learned to thrive and survive. Enjoying a sheltered locations with easy access to the North Sea, it is no surprise that yards such as these have been able to build a good business supplying support services to ships and rigs operating in the North Sea which require a rapid turnaround in order to return to full operation once any necessary maintenance or upgrade work is completed. Westcon Yard in Ølensvåg is a prime example of the type of location which is now favoured by ship-builders up and down the coastline. Traditionally Norway's west coast shipyards have concentrated on four main markets, comprising the offshore sector, specialised ships, fishing boats and passenger ferries. But as the number of shipyards had declined, previously independent shipyards have found themselves merging with others in order to survive or face extinction. Today, the industry comprises a fewer number of larger players, and smaller shipyards which continue to build, repair and equip sea-going ships. With a tradition of building specialised shipping all along the western coast, many vessels have been built with high levels of expertise and competence. In many instances these yards have been the principal employers within a community: Westcon remains the single largest employer in Ølen in the county of Vindafjord. Competition on time rates, location and productivity have been some of the hallmarks of the domestic ship construction industry. One of the strongest advantages has been ship design and conceptual development. Detailed ship drawings have been outsourced abroad, to be finalised in lower-cost markets, together with labour-intensive production of equipment and parts. Now, assembly and testing is concentrated in Norway. “Due to the high wage level in Norway, the Norwegian yards are not competitive for the construction of large, standardised ships,” a spokesman for Westcon Yard says. “The global demand for new ships has dropped dramatically after the financial crisis in 2008. Norwegian yards still have contracts for new ships in the coming years, but after 2011 the contracts were few,” says the ship construction group. Exposed to intensive international competition within the shipping industry, Norwegian yards have been supplying world-leading concepts and vessels: Between 2000 and 2009 there was a domestic boom in orders. But then the party was over. Market demand for chemical product tankers collapsed entirely, so shipyards have instead turned more of their attention to working within the offshore energy industry. Some have opted to specialise in rig and ship maintenance.

Westcon dock b

by night

s h i p ya r d s

199

200

s h i p ya r d s

Norway's shipbuilding market position was weakened by high costs which were thought to be between 30% to 40% higher than rivals in Denmark and Sweden. And the differential compared with pay levels in the Baltic Sea shipping market was even higher. In 2009/2010 the ship and offshore building industries were in a very challenging market situation with very few orders coming through from January 2010 onwards. Help was a hand, however, with the introduction in April 2010 by the Norwegian government of a new economic support package for the domestic shipbuilding industry. At that time around 35,000 people were working in ship-building and in oil platform construction in Norway and another 50,000 worked within companies delivering services and supplies to the marine and offshore industries. In many municipalities, these workers often accounted for more than 20% of the labour market. Concerned about widespread lay-offs as new orders evaporated, the government sought to help the shipbuilding and offshore industries realise profitable projects, facilitate restructuring and to develop industry-critical skills. Government contributions to the industry were introduced, aimed at supporting future markets and providing employment certainty for shipyard workers.

In hard cash terms this new government stimulus package has meant: • • • • •

The Guarantee Institute for Export Credits receiving a NOK 10 billion budget increase while allocation rules were also eased; The total budget for innovation loans was increased by NOK 200 million; Another NOK 175 million was earmarked for research and development work; Another NOK 25 million was allocated to SIVA, the Public Company for Industrial Growth - to create five new maritime industry business incubators. More funding was directed towards small and medium export-oriented companies.

Today there has been stronger emphasis on integration of design, equipment and yards. For many Norwegian yards, - including Westcon - shipbuilding is now concentrated on construction of

offshore vessels for the international market, and ships for fisheries, and ferries for the domestic market. Within those broad categories, yards are now producing customised vessels, LNG-fuelled ships, specialist offshore and seismic vessels, as well as fishing vessels.

One of the units completed by Westcon was the MPSV Stril Explorer, which was delivered in 2010: • • • • • • •

Length: 76.40 m Length: 69.80 m Breadth: 16.20 m Depth to main deck: 5.45 m Gross tonnage: 3657 GRT Speed: 13 knots Class: DNV +1A1, General cargo carrier.

Along with other traditional shipyards, Westcon has been heavily involved in the petroleum sector, providing service and maintenance for jackups, offshore platforms and semi-submersibles. To date, nearly 100 rigs have been through the yard since the first semi-submersible rig, Dyvi Stena, entered it in 1994. More recently it has carried out maintenance work on the sixth-generation Scarabeo 8, a semi-submersible rig based on a Moss CS 50 Mkll design:

s h i p ya r d s

Viking Lady vital statistics: • • • • • • • •

Length:92 m Beam 21 m Depth under main deck 9.6 m Deck area : 1.000 square metres Propulsion: Four gas motors producing 7.800 MW, or almost 10.000 horse power. Speed : 15.5 knots with with five propellers: Two aft and three in the bow Design: Vik-Sandvik AS, featuring a called clean design, with a double hull to avert spillages. Accommodation: 25 people

West Contractors – now Westcon was established in 1981 but the company can trace its history stretching back to 1963 when it began as a family-owned enterprise. During the 1960s and 1970s, the business was converting coastal fishing and cargo vessels, and it became involved in shipbuilding in the later 1970s. In 1983 the company bought its first dock, allowing execution of ship maintenance work for vessels up to 80 metres. This was followed by a substantially larger dock which was acquired in in 1997, accommodating vessels up to 150 m. Last year the company changes it name to Westcon Yard AS.

Scarabeo 8 specifications: • • • • •

Length: 118.56 m Breadth: 15.73 m Depth: 10.15 m Water depth: up to 3.280 ft (moored), up to 10.000 ft (dynamic positioned mode) Drilling depth: 10.660 m

Today technology innovation is part of the business proposition every facility needs to offer to remain competitive: Any innovations that can shorten the yard stay of a mobile offshore drilling unit - due to high offshore rig day rates – are in high demand by costumers. One example is the development of laser scanning which allows a 3D scanner to compile a three-dimensional picture of a rig or vessel with millions of data points, and measurements, for all visible areas. This makes it possible to sit in an office and study a laser scan and find any vessel measurements and dimensions which are required. This aids equipment, pipeline and structural design. Also, installation work is simplified by allowing available space to be visualised. Scanning reduces the time needed for a rig or ship to spend idle at a quayside, as fabrication of third party equipment can be completed before the vessel or rig arrives there for its installation. More innovation has come in with the design of environmentally friendly ships, such as Viking Lady – which was also built at Westcon Yard - with engines burning natural gas, providing an annual saving of NOX emissions equivalent to 22,000 cars. The Viking Lady was also equipped with fuel cells to generate electricity – a first for a supply vessel in a marine environment. A further advanced design feature is the wheelhouse, which is located in the aft of the vessel, to increase safety and comfort for the crew, and to improve the working environment on board. She is equipped with dual redundancy systems, to ensure continual operation in the event of any single system failure.

Today the company sees more than a hundred ships, rigs and platforms using its services annually, and the workforce now stands at 800 while another 200 to 1200 employees are hired by sub-contractors during activity peaks. Services range from ship-building through to ship and rig repairs, and offshore services. Initial sketches through to finished jobs can be completed, and the yard benefits from endorsement from leading classification societies. Co-operation with local education authorities ensures it can also draw upon a steady flow of newly-qualified expertise. With project management skills available, the company has a systematic approach to project planning, status tracking, and documentation systems, to ensure work placed at the yard is efficiently cost controlled.

Investments Recent investment has involved a NOK 160 million quayside extension to increase the seabed berthing depth. Seabed “pillows” have been built to allow jackup rigs to dock at the quayside, and a new crane has been added, with 160 tons of lifting capacity. Last year saw a peak of activity at the yard with the arrival of the Scarabeo 8 semi-submersible for a substantial maintenance and repair programme. Turnover in 2010 was NOK 1.5 billion and in 2011 it is provisionally expected to be substantially higher, at around NOK 1.8 billion.

201

15/

Oil Cities Boom towns

204

oil cities

The Ber

rgen Group Rosenberg near Stavanger

oil cities

Stavanger Billing itself as Norway’s energy capital, Stavanger is at the heart of the Norwegian oil industry. It is home to the headquarters of the country’s major oil player Statoil and a host of other operators. Stavanger is also home to the country’s two major regulatory bodies, the Norwegian Petroleum Safety Authority which as its name suggests, has responsibility for regulatory affairs, and the Norwegian Petroleum Directorate which oversees management and control of petroleum resources on the Norwegian Continental Shelf. For many energy industry visitors, Stavanger is perhaps best known as a conference venue, hosting the bi-annual Offshore Northern Seas (ONS) conference and exhibition - which takes place in August this year at the Stavanger Forum conference centre. Companies and delegates from around the world flock to this major international oil industry event. This year's ONS 2012, which has the them of “Confronting the Energy Paradoxes,” will once again feature globally renowned speakers, including government leaders, and experts from different industries and specialists in technical disciplines relevant the energy industry, who will gather to debate these issues. Because oil and gas activity supports Norway's current status as the world’s third largest oil exporter, most Norwegian operating companies have their headquarters in the Stavanger region. The same applies to the IOCs - international operating companies - with Norwegian offices. And nearly 40% of all Norwegian oil service companies are based in Rogaland county region - lending crediblity to the boast of being the nation's energy capital. And the region is also internationally recognised for related expertise in health, environment, safety and security issues offered through the region's many advisory and consulting companies. Because of that, the region attracts some of the best brains from both home and abroad because employers offer exciting and varied jobs within the oil industry, both on and offshore. The University of Stavanger is a recognised educational institution and IRIS – the International Research Institute of Stavanger- conducts national research on topics such as petroleum, environment, social science and business development and gas and new energy. Located on a peninsula on the south-western coast of Norway, Stavanger's climate is mild and rather windy. Yes, it rains, but summers are pleasant and agricultural lowlands in and around the city have the longest growing season in Norway. Around 300,000 people live in the city, making it the third largest in Norway after Oslo and Bergen. The population of the Stavanger region increased by 41 000 people from 2000 to 2010 and in 2005 the region was awarded the accolade of becoming Norway's most successful economic region and has held that position since. People enjoy living here, and the region offers exciting, challenging, and well-paid work, attracting the best talent from both home and abroad, with spectacular mountain and fjords providing both a beautiful backdrop and a stimulating environment for leisure. In fact, according to a United Nations Standard of Living survey, Norway is the world's best country to live in. Well connected to international destinations via Sola airport - which also serves to to provide helicopter shuttle services out to North Sea installations – Stavanger is easy to reach.. And for tourists, it is a place they are reluctant to leave. But Stavanger's story is not just about oil: In 2008, the city was the European Capital of Culture. Over the course of that year, more than 1100 cultural events took place around Stavanger. “We still place a large emphasis on culture in the region, and we are working towards solidifying our position as a European cultural region,” the city's marketing experts say.

205

206

oil cities

Bergen Bergen in Hordaland county has an estimated total population of 377,116 people according to a 2010 estimate. Lying on Norway's western coast, it has been a meeting point since the city was founded back in 1070. but today a walk in Bergen, from its picturesque harbour-side to the historic buildings in the city centre with a dramatic backdrop provided by the as "de syv fjell" - the seven mountains- has much more to offer visitors, either shoppers, or people seeking to do business there. The Offshore Media Group has established the Offshore Technology Days (OTD) in Bergen, which is Norway´s largest annual oil exhibithion. Bergen is a modern oil and gas centre too: Up to 80% of the total crude oil exported from Norway goes out through the Hordaland region, and gas from the huge Troll, Kvitebjørn and Visund fields in the North Sea, lands at the Kollsnes plant just west of Bergen, which can handle up to 143 million standard cubic metres of gas per day. Bergen yards, headquartered not surprisingly in Bergen, has offshore bases throughout the country, at Hanøytangen, BMV, Halsnøy, Rosenberg, Hammerfest and Kimek in the far north providing expertise in marine and offshore operations and facilties.. Around 5,000 people in Bergen are employed by Statoil, and the giant Mongstad gas processing terminal and refinery operation lies just north of the city. Mongstad means a lot to the future of Bergen since the opening in May this year of a new carbon capture research facility there, which, its developers hope, will become a world renowned centre for CCS technology in the future, right on Bergen's doorstep. Phase one of the Mongstad carbon capture project,- designated the European CO2 Test Centre Mongstad (TCM) and owned by the Norwegian Government, Statoil, Sasol and Shell - involves taking exhaust gases from a residue catalytic cracker and a natural gas combined heat and power plant at Mongstad, and extracting carbon dioxide. Two processes are being used, Aker Clean Carbon's amine-based CO2 capture system, and a chilled ammonia-based technology from Alstom. At least 80,000 tonnes of CO2 is to be captured using chilled ammonia and another 20,000 tonnes of CO2 with amine technology. In phase two

oil cities

– for which a decision on funding is awaited from the Norwegian government in 2016 – another 1.5 million tonnes a year of CO2 would be captured. In September 2010 the cost for the CCS plant at Mongstad refinery and the power station was estimated at NOK 6 billion (US $1.02 bn), but in October that year the government announced project spending was going to be increased by a third – another NOK 2.7 bn ($462 million). Overall, it is estimated that around 14,000 direct jobs and possibly more are due to the oil and gas industry in the Bergen region. Bergen is also home of one of the 12 regional knowledge centres, Norwegian Centres of Expertise, which are backed by the government. Bergen's NCE Subsea – is the knowledge cluster for subsea activities aimed at supporting innovation, capacity and internationalisation of subsea knowledge and expertise within the region. Bergen's NCE Subsea cluster is jointly administered by Innovation Norway, SIVA - the Industrial Development Corporation of Norway- , and the Research Council of Norway. A total of 124 companies form part of the group, which is led by a management board representing key oil and gas players across the Bergen region, working in offshore and subsea sectors, including Statoil, Aker Solutions, FMC, Coast Center Base, and the research organisation SINTEF Petroleum Research, which are are all included on the board and the members include Emerson Process Management, and Expro to name just two. NCE Subsea works with companies in the region on energy technology development, production supply and co-operation, and on globalisation of the expertise available in the Bergen region. Coast Center Base, just outside Bergen, which hosted the Songa Delta semi-submersible for a five-year maintenance stay in 2011, provides one of the major logistical links to North Sea operations. Energy services companies in the region have also been long recognised for specific strengths in after-market activities, particularly on maintenance, modification and operations (MMO). Bergen is well connected by sea, by land, by rail by air: Numerous ferries call at Bergen's ports, serving domestic destinations, and international routes to the UK and Denmark. Well connected by road, Bergen is also easily reached by other means: Bergen Airport Flesland is just over half an hour from the city centre by bus, providing international air access, and by train, the capital Oslo can be reached in six to seven hours. Historically, Bergen was one of the busiest trading ports northern Europe, and was controlled by the Hanseatic League, for several hundred years. Until1830 Bergen was the country's largest city, when it was surpassed by Oslo .

The Bergen Group Rosenberg offshore yard, Bergen

207

208

oil cities

Oslo

The Bergen Group Rosenberg, Kimek

Home of the Norwegian Stock Exchange, seat of government at the Storting, Oslo is the political and financial centre of Norway. With a population of nearly one million, it is the largest city â&#x20AC;&#x201C; with a population four times that of Bergen or Stavanger and home to some of the best known names in the energy business in Norway and around the world: Shipping group Bergesen Worldwide is headquartered there, so too is Aker Floating Production, Awilco, AF Decomm Offshore, BW Offshore, Fred Olsen Energy; oil and gas consultantcy Ramboll; rig owner Seadrill, shipbuilder STX Europe....and the list goes on. Oslofjord Offshore Forum is an association for oil and gas businesses in the Oslo region. It exists to provide contact and co-operation between members, and to promote the oil and gas industry in the region. Subsea Valley is another oil and gas business support unit found in the Oslo region, which organises conferences in Asker, and boasts a membership of nearly 100 who together represent 26,000 jobs in the region and a massive NOK 82 billion ($13.42 bn) of revenue.

Kristiansand Kristiansand, the capital of Vest-Agder county, bills itself as the city full of energy and as the administrative, business and cultural capital of southern Norway. And it doesn't take long to make oil industry connections in Kristiansand: National Oilwell Varco employs more than 1,500 there. Aker Solutions is one of the major providers of engineering and construction services to the international oil and gas industry from within the region, alongside Kongsberg Oil and Gas Technologies which is also located in Kristiansand. Together, these companies comprise some of the major employers of the region, alongside Siem Offshore which supplies offshore support vessels: from platform supply vessels to multi-role ROV fields support and anchor handling tug supply units. With a population of 120,000, the city benefits from high level educational facilties provided by the University of Agder, the largest institution in the region, with around 9,500 students and it offers more than 200 courses, studying across five faculties including engineering and science. Also located in Kristiansand is the Norwegian School of Management. From Kristiasund, it is 290 kilometres to Bergen; 250 km to Oslo and 160 km to Stavanger, or 900 km to London and 1400 km to Paris. Up to two million travellers pass through Kristiansand's airport â&#x20AC;&#x201C; which has flights to Copenhagen and Amsterdam - and its sea port each year. By air, it is 45 minutes to Oslo, 40 minutes to Stavanger, and an hour to Bergen, while Copenhagen is 55 minutes away and Amsterdam one hour and 35 minutes.

oil cities

Snohvit's 33,000 tonnes of LNG process plant arrived by ship and was sunk into a specially excavated site on Melkoya island just north of Hammerfest. Snohvit gas has been arriving there since August 2007 from the Barents Sea – the first development there, operated by Statoil with partners Petoro, Total Norge, GdF Suez, and RWE Dea Norge. Snohvit comprises the main Snohvit field and Albatross, while the Askeladd discovery is due to be added to the offshore project and is due onstream in 2014/15. Gas from the Snohvit field travels fro subsea wells along a 143 km pipeline back to the process plant at Melkoya.

Trondheim Trondheim, which calls itself the “city of knowledge” is perhaps best known in energy industry circles as the home of the NTNU, the Norwegian University of Science and Technology. Trondheim is also home to the Norwegian Marine Technology Research Centre, as well as Sintef Petroleum Research. The city boasts key expertise in several areas: Professions include advanced engineering, design, innovative measuring techniques, complex analysis and control system solutions, industrial processing and materials engineering and the city also boasts expertise in new safety and environmental standards. Many of Trondheim's professions are closely linked to the Statoil control centre at Stjørdal while service operators based in Kristiansand also provide knowledge and expertise. In the downstream energy sector, gas industry related activities can be found around the city. Nearby industrial plants include Statoil/ConocoPhillips operations for supplying methanol and derivatives at the Tjelbergodden plant, and the control centre for the Ormen Lange deepwater development is nearby. Trondheim hosts several contractors and suppliers working on these energy facilities, as well as research and engineering teams supporting operations in the Norwegian and Barents Sea. And one of the smaller oil exploration companies in the North Sea, Det norske, also operates from Trondheim. Via Trondheim's Vaernes airport, just 32 km north-east of the city – other airport authorities take note here: There is free Wifi at Trondheim – travellers can connect with Copenhagen, Amsterdam, Bergen and Oslo to name just four destinations.

Hammerfest Hammerfest is home of the Snohvit liquefied natural gas plant in the far north of Norway, and it is shaping up to become a new oil and gas energy hub which could act as a receiving terminal for new developments in the Norwegian sector of the Barents Sea.

At the beginning of last year the population of Hammerfest was put at just under 10000 inhabitants. Most of them work at Hammerfest or at the Melkøya island LNG processing facility. Statoil says a total of 912 employees reside in its three most northerly facilities, and it has a workforce of 3,456 in Northern Norway making it the biggest employer in the region. Hammerfest has an annual budget of NOK 1.4 billion a year and 50% of this is spent locally, the Norwegian oil major says. Statoil boasts 250 direct employees for Snohvit, and there are just as many in associated service jobs. “Research into the impact of the development indicates that the number of jobs in the town rose from 4,600 in 2002 to 5,900 in 2007, an increase of 30%,” the operator indicates. And with a influx of younger people in the Hammerfest area, the demographic profile of the region has improved, bringing new skills and talent to the area. Because it is so far north – at a latitude of 70.6 - the municipality experiences constant daylight between May and June. Conversely, between November and January each year, the sun never shines there, and it is constant night. Hammerfest's unique boast is that it is the world's most northerly habitation – it has patent rights to the trademark phrase “The world's northernmost town.” Beyond Hammerfest, Northern Norway as a whole has a promising future:Statoil harbours ambitions to become a major force in exploration of Arctic regions, aiming to capitalise on the exploration opportunities which may be offered by the eventual opening of areas around Lofoten, Vesteralen, Nordland VI and VII, and Troms II. Petro Arctic, the supplier network in Northern Norway is seen by Statoil as a potential source of contractors for the forthcoming Aasta Hansteen development. Statoil and its development partners have signed an agreement to use Petro Arctic to identify potential suppliers for the project, formerly known as Luna, which will provide the basis for procurement from local and regional companies in Northern Norway. Special emphasis will be placed on fabrication hall capacity, welding and mechanical work, plus quayside and support base availability. Last year Statoil estimated investment in Aasta Hansteen – which will see the first use of a deepwater spar platform offshore Norway – at NOK 34 billion ($5.569 bn). Some of that is bound to be seen in the Far North.

209

210

oil cities

G E E nergy AS Measurement & Control is a leading innovator in asset and condition monitoring, Control System solutions, valves, advanced, sensor-based measurement, non-destructive testing and inspection. Providing healthcare for customers’ most critical assets, the business delivers accuracy, productivity and safety to a wide range of industries, including oil and gas, power generation, aerospace, metals and transportation. Measurement & Control has over 40 facilities in 25 countries and is part of GE Oil & Gas.

GE Energy Measurement & Control Solutions Ph o n e : + 4 7 5 5 3 4 8 9 6 0 w w w. g e - m c s . c o m

We have the people, the technology and the experience to help you optimize performance, conserve resources and exceed regulatory requirements. Consider us your global partner for all your oil and gas measurement needs. We’ll deliver low-risk solutions, innovative, high performance products and responsive customer support – to deliver the best results to you and your customers.

Our Customers GE Bently Nevada has been delivering high quality products and services to the Norwegian oil and gas industry for decades now. We have over the last 20 years built up a large organization in Norway with highly skilled field engineers in both instrumentation/automation and machinery diagnostic/analysis. During this time, we have built up a large installed base of our systems both offshore and onshore and developed excellent working relationships with our customers

University Collaboration - NTNU GE-Bently Nevada in Norway have started a collaboration with the most recognized University in Norway, The Norwegian University of Science and Technology – NTNU in Trondheim. The objective with this long term relationship between the University and Bently Nevada in Norway is to educate students in current and new advanced Machinery Diagnostic / Rotor Dynamic using the

Bently Nevada methodology.

Bently Nevada™ The Bently Nevada name has been synonymous with machinery protection and condition monitoring for more than 50 years. Our network of global experts is dedicated to helping our customers solve some of their toughest challenges in the oil and gas and power generation industries. From refineries and petrochemical plants to hydroelectric facilities and wind farms, Bently Nevada’s trusted and proven vibration & condition monitoring equipment and comprehensive services portfolio help improve the reliability and performance of production assets like turbines, compressors, motors, generators, and everything in between.

Control Solutions Our plant and machinery controls expertise spans multiple industries, multiple continents, and multiple manufacturers. Regardless of the original manufacturer of your equipment or what industry you operate in, you can turn to us for controls and supporting services for your turbines, compressors and generators. From our integrated turbine compressor control (ITCC) for today’s most advanced anti-surge applications, to plant-wide distributed control systems for the power generation industry, you can count on GE to design and deliver a comprehensive solution to exactly meet your needs.

A D d r e s s : G E E n e r g y AS , D a m s g å r d s v. 1 6 3 A , 5 1 6 0 Laksevåg, Bergen, Norway

oil cities

Commitment to quality GE Measurement & Control Solutions' are commitment to quality is validated by our ISO 9001:2008 certification, which demands establishment of a quality management system for our business practices. This certification demonstrates that our quality management system is:

•

Documented

•

Supported and maintained

•

Executed with continuous improvements

The 9001:2008 standard emphasizes customer satisfaction as a required measurement for both our services and products to make sure we continually meet and fulfill customer needs. Audits are conducted annually by quality management and externally by certified third party agencies to ensure compliance. These audits include documentation and corrective action but also encompass customer and internal communications.

Flow & Process Technology Valves - Control & Safety. GE’s heritage in valve technology dates back to the late 1800s. With

that heritage, an installed base of more than three million valves and well-known industry brands— Masoneilan, Consolidated, Becker and Nuovo Pignone, customers can count on our technology to protect their process assets. We bring our valve expertise, advanced design tools and modern manufacturing technologies to applications in oil and gas, power generation, refining, petrochemical and water control industries. To optimize valve installations, we offer valve asset management software and lifecycle support-services

Measurement Solutions GE MC Measurement Solution is a provider of advanced sensor technologies to help our customers with their toughest measurement and control challenges. The portfolio consist of Gas, Steam and Liquid Flow, Pressure sensor, Calibration and Calibration Management Solutions and Gas and Moisture analyzers.

Inspection Technologies business partners with you to meet your non-destructive testing (NDT) needs. We provide a full suite of non-destructive testing solutions, including radiography, computed tomography, remote visual inspection, ultrasound, eddy current, hardness testing and metrology. Our Rhythm® data management software is a unique platform that sets our inspection solutions apart from the rest. Once data is captured, it can be analyzed,

reviewed and shared, assisting in better and faster decision making in the field and in the office.

211

212

oil cities

B ergen S kipsinnredning We are specialists in Marine Interior solutions. We provide a full range of services within the area of interior and accommodation, ensuring safe and efficient management and execution of operations. We perform interior projects on ships and offshore installations, and supply all kinds of materials for the accommodation area. Our customers are mainly shipyards, shipping companies and oil service companies. We offer a full range of services to the rig industry, and meeting client's requirements to safety, quality, time-frame and cost.

w w w. b e r g e n - s k i p s i n n r e d n i n g . n o Ph o n e : + 4 7 5 6 3 2 2 1 7 7

A D d r e s s : Kv e r n a t u n v e g e n 3

M AIL : p o s t @ b e r g e n -

Ågotnes, Norway

skipsinnredning.no

M a i l Ad D r e s s : PO B o x 9 9 5346 Ågotnes

Services

Products

We offer a wide range of services to the rig industry, such as:

We deliver a range of products related to rig interior. These are for instance:

•

Planning and engineering of interior projects

•

Wooden furniture

•

Turn key projects

•

Steel furniture

•

Galley equipment

•

Interior drawings

•

Messroom equipment

•

Logistic services and support

•

Laundry machinery

•

Execution of rig interior projects

•

Freezing- and refrigerating plants

•

Documentation according to regulation re-

•

Ventilation plants

•

Insulation

•

Fire rated doors

•

Wall paneling system

•

Ceiling paneling system

•

Concrete and self leveling floor

•

Ceramic tiles

•

Vinyl floor

•

Ship floor

quirements We do our utmost to hold a very high standard when it comes to HSE. Our goal is zero injuries to persons and no damages to goods. So far we have succeeded very well on these goals. All our employees have got their offshore safety training at NOSEFO, and we perform our work all over the world. Through our ISO-certification, we have also committed to the demands and guidelines in the standard. We are also prequalified in the Achilles JQS.

oil cities

ir vision as IR Vision AS has a long experience within the on and offshore field and we have contracts and customers in Norway, UK and Denmark in the fields mentioned below. The company was founded in 1998 as a shareholding company, previous named Thermography Technology International from 1995.

Ph o n e : + 4 7 5 1 6 4 0 7 3 3 m o bi l e: + 47 920 24 62 1 E M AIL : i r v i s i o n @ o n l i n e . n o w w w. i r v i s i o n . n o

ADdress: Ving veien 2, Sola, Norway M a i l Ad D r e s s : PO B o x 2 5 2 , 4 0 9 8 Ta n a n g e r, N o r w a y

OPGAL Eye C Gas Camera:

IR Vision AS has a long experience within the on and offshore field and we have contracts and customers in Norway, UK and Denmark in the fields mentioned below.

We also very successfully perform Gas Leak Surveys using a special Thermographic Camera manufactured to only detect Gas leak on any hydrocarbon systems on/offshore.

The company was founded in 1998 as a shareholding company, previous named Thermography Technology International from 1995.

We use the OPGAL Eye C gas equipment which is currently under tests to be ATEX approved in Europe. It will be the only IR equipment to be ATEX approved.

We deliver reliable surveys on/offshore within the Infra Red Spectrum including the following services:

IR Vision AS is also the agent to promote and sell the OPGAL Eye C Gas Camera in Norway.

Our customers include: •

Petrochemical Process surveys such as •

ConocoPhillips

•

Statoil

•

Det Norske Veritas

•

Shell

•

ExxonMobil in Norway

•

Apache UK

•

CNR UK

Scale detection of Sulphates, Iorn Sulphide, Carbonates etc. in all pipe sizes, Deposit in Slug Catchers, Solids in Vessels etc. •

Corrosion under insulation.

•

Damaged refractory on exh. Ducts from turbines and Fire Pumps Engines etc.

•

Leaking PSV’s.

•

Hess DK

IR Vision AS have Level 1 and 2 certification and is registered in Achilles.

213

The 15 Offshore Technology Days

Over 440 suppliers of the latest technology and service development covering every discipline will exhibit

www.offshoredays.com

Organised by:

Official Media Partners:

Pumping Systems - to the world oil & gas

industry...

In the international oil and gas industry Frank Mohn AS - Oil & Gas are recognised as a leading designer, manufacturer and supplier of complete pumping systems for both onshore and offshore applications. Keywords are solid craftmanshipcombined with innovation and world-wideservice. One System, one supplier, time saving and cost effective.

- Firewater Pumps - Seawater Lift Pumps - Water Injection Pumps

Frank Mohn AS - Oil & Gas

N-5918 Frekhaug - Norway tel. +47 55 99 94 00 - fax +47 55 99 95 81 oilandgas@framo.com www.framo.com

Please visit us at our stand L26 at the Commercial Norwegian Pavilion

The Norwegian Continental Shelf 2013 - the source list Oil Companies Text: Statoil, BP, Lundin, Mærsk Oil, Petoro, Shell og Spring (Photo: Petoro, OLF) HSE Text: Petroleumstilsynet, Statoil, Eurocopter, Bring, Aircontactgruppen og Offshore.no/International. (Photo: Eurocopter, OLF) MMO Text: Fabricom, Offshore.no, Shell, ConocoPhillips, Simek, The Lister Alliance og Inventura. (Photo: Fabricom, OLF) Job market Text: NAV, The Norwegian Society of Engineers and Technologists, Menon Business, Economics, Rystad Energy, Centre for Gender Equality, Statoil, The Norwegian Oil Industry, Association, Offshore.no Field development Text: Rystad Energy, The National Petroleum Directorate, Statistics Norway, Company websites, Ministry of Petroleum and Energy, Offshore.no (Photo: Statoil, Glenn Stangeland) Exploration Text: The National Petroleum Directorate, Statistics Norway, The Operators on the NCS, Offshore.no (Photo: Statoil, Glenn Stangeland) Made in Norway Text: Intsok, Statoil, Rystad Energy (Photo: Statoil, Wikimedia, Chevron) Oil cities Text: Greater Stavanger, Oslo City, City of Trondheim, Visit Kristiansand, Visit Kristiansund, Statoil (Photo: Øyvind Hagen - Statoil, Bergen Group) Onshore bases Text: Gassco, Norwegian Petroleum Diretorate, PetroArctic, Petoro, Statoil/various other company websites, Westcon, Offshore.no/International (Photo: Stats group, Westcon) Supply bases Text: Asco/ interviews with author, CCB Coast Center Base, NorSea, Petoro, Statoil . Seismic Text and photo: Dolphin Geophysical, Reservoir Exploraton Technology, CGG Veritas, EMGS: 3D “CSEM for Hydrocarbon Exploration in the Barents Sea” by P.T. Gabrielsen (EMGS), D.V. Shantsev* (EMGS) & S. Fanavoll (EMGS); presented at 5th Saint Petersburg International Conference & Exhibition, Geosciences: Making the most of the Earth’s resources, Saint Petersburg, Russia, 2-5 April 2012, Norwegian Petroleum Directorate, Offshore.no/International, Polarcus: Presentation EAGE Copenhage June 2012, TGS Subsea, Rig market, Decom Text: Rystad Energy, Pöyry Management Consulting (Norway), Nordea Markets, Climate and Pollution Agency, Statoil, Aker Solutions, Petroleum Safety Authority Norway, Images: Statoil, COSL Drilling Europe, Aker Solutions, FMC Technologies, Odfjell Drilling, Maersk Drilling, Rowan Drilling, Seadrill, Songa Offshore, AF Decom, Norsk Oljemuseum, Prosafe, John Økland